TIDMDQE

RNS Number : 0816F

DQ Entertainment PLC

09 November 2015

 
 DQ Entertainment Plc. 
  Condensed Consolidated Interim Financial Statements 
  30 September 2015. 
 For immediate release                                  9 November 2015 
 

DQ Entertainment plc

("DQE" or the "Company")

Results for the half year ended 30 September 2015

DQ Entertainment (DQE), a leading animation, gaming, live action entertainment production and distribution company, today announces its unaudited consolidated financial results for the half year ended 30 September 2015.

Financial highlights for the half year ended 30 September 2015:

o Revenue: INR 736 m (H1 2014: INR 733 m)

o Revenue from Production: INR 632 m (H1 2014: INR 500 m)

o Revenue from Distribution: INR 101 m (H1 2014: INR 233 m)

o EBIDTA: INR 321 m (H1 2014: 375 m)*

o Profit before tax: INR 78 m (H1 2014: INR 4 m)

o Profit after tax: INR 18 m (H 2014: INR 39 m)

*Excluding a notional foreign exchange gain for the year ended 30 September 2015 of INR 223 m (H1 2014: Foreign exchange loss of INR 73 m)

The improvement in the global market, particularly in North America, has had a positive impact on the the Company's operations, with the Company generating total revenue of INR 736 m in the half year ended 30 September 2015 (H1 2014: INR 733 m) which is in line with management expectations.

The financial performance of DQE benefited from changes in foreign exchange rates and a substantial increase in production and delivery efficiencies. For the half year ended 30 September 2015, there was a foreign exchange gain of Rs. 223 m (2014: foreign exchange loss of Rs. 73 m), due to the restatement of foreign currency balances as at 30 September 2015.

Our focus in the second quarter of the year was to improve operational efficiencies and expand human resources, to meet the demands of production in the coming months. The consolidation and expansion of artistic and technical skill sets and productivity improvements across all production processes has been initiated.

Our continuous efforts in respect of collecting receivables from customers are bringing in positive results, with remittances being received from almost all clients concerned. We are confident that these actions will enable us to report a significantly reduced debtor position by the end of the financial year.

Business Update

We are close to completing the second season of our proprietary production 'The New Adventures of Peter Pan'. The production of Season 1 of 'Miles from Tomorrow land' (Disney Junior USA) has recently been completed, with the production of Season 2 of this series commencing on a back-to-back basis, showing the confidence of our customer in our quality and delivery. The '5&IT' TV series is in production with Disney-Germany and Disney-France.

Our other productions such as 'The HIVE', Season 2 (a Disney Junior show), 'Popples' (Saban group, USA project), 'Sheriff Callie's Wild West' (Disney Junior, USA) and 'Seven and Me', a hybrid show combining high quality CGI with live action footage are also moving ahead on schedule.

We are also happy to report that our proprietary TV series 'The Jungle Book' has gone into a third season, in association with ZDF Enterprises and ZDF TV, Germany and Canal Plus, France.

During the quarter, our VFX division was also involved in the visual effects sequences within an epic feature film. Our VFX division completed the delivery of services for 'Rudrama Devi', by Gunasekhar and feature film 'Akhil', a Sresthth production containing significant amount of quality computer graphic work, which is slated for release soon. The acceptance and appreciation of our VFX work by the feature film industry has led to additional VFX orders. The division is currently engaged on certain high-end visual effects assignments for big banner feature films directed by leading directors from the Indian "Tollywood" industry.

The Company's digital platforms continue to perform satisfactorily, and we expect for third party properties to be hosted on 'Power Kids' and 'Tiny Toonz' in the near-term future.

For further information, please contact:

 
 DQ Entertainment plc                  Tel: +91 40 235 
  Tapaas Chakravarti - Chairman         53726 
  and CEO 
  Rashida Adenwala - Director Finance 
  & Investor Relations 
 
  Allenby Capital Limited - AIM          Tel: +44 (0)20 
  Nominated Adviser & Broker             3328 5656 
  Jeremy Porter / Alex Brearley 
 Buchanan 
  Mark Edwards/Robbie Ceiriog-Hughes     Tel: +44 (0)20 
                                         7466 5000 
 

- Ends -

Condensed Consolidated Income Statement

 
                             GROUP                                Note    Six months       Six months         Year 
                                                                             ended            ended           ended 
                                                                          30 September     30 September      31 March 
                                                                              2015             2014            2015 
                                                                             INR'Mn           INR'Mn          INR'Mn 
----------------------------------------------------------------  -----  -------------  -----------------  ----------- 
 
  Revenue                                                            C             736                733        1,828 
Cost of sales                                                                    (430)              (428)      (1,049) 
                                                                         -------------  -----------------  ----------- 
Gross profit                                                                       306                305          779 
                                                                         -------------  -----------------  ----------- 
 
Other operating income                                                               7                  3          129 
Distribution expenses                                                             (20)               (15)         (27) 
Administrative expenses                                                          (133)               (78)        (267) 
Other operating expenses                                                             -                  -            - 
                                                                         -------------  -----------------  ----------- 
                                                                                 (146)               (90)        (165) 
                                                                         -------------  -----------------  ----------- 
Operating result before financing costs and foreign exchange                       160                215          614 
                                                                         -------------  -----------------  ----------- 
Foreign exchange gain /(loss)                                                      223               (73)        (324) 
 
  Financial income                                                                   3                  3            5 
Financial expenses                                                               (313)              (143)        (421) 
Net financing costs and foreign exchange gain/(loss)                J             (87)              (213)        (740) 
                                                                         -------------  -----------------  ----------- 
 
Share of profit/(loss) of associate                                                  5                  2          (3) 
 
Profit/(Loss) before tax                                                            78                  4        (129) 
Income tax expense                                                                (60)                 35         (73) 
                                                                         -------------  -----------------  ----------- 
Profit/(Loss) after tax                                                             18                 39        (202) 
                                                                         =============  =================  =========== 
 
Attributable to: 
 
Owners of the Company                                                             (20)                 35        (138) 
Non-controlling interests                                           L               38                  4         (64) 
 
 
 
Basic and diluted earnings per share for profit attributable to     K 
the equity holders of the 
company during the period (expressed as cents per share) 
Basic earnings per share                                                        (0.36)                  1          (2) 
Diluted earnings per share                                                      (0.36)                  1          (2) 
 

Condensed Consolidated Statement of Comprehensive Income

 
                                                             Six months        Six months        Year 
                                                                ended             ended          ended 
  GROUP                                              Note    30 September   30 September 2014   31 March 
                                                                 2015            INR'Mn           2015 
                                                                INR'Mn                           INR'Mn 
-------------------------------------------------  -------  -------------  ------------------  --------- 
Profit/(Loss) after tax                                          18                39            (202) 
 
Other comprehensive income 
Foreign currency translation                                     598              (54)           (365) 
 
Total comprehensive income for the period / year                 616              (15)           (567) 

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                                                            =============  ==================  ========= 
 

Total comprehensive income attributable to:

 
Owners of the Company           471  (14)  (453) 
Non-controlling interests   L   145  (1)   (114) 
 
 

Condensed Consolidated Statement of Financial Position

 
                 GROUP                   Note        As at             As at            As at 
                                                  30 September    30 September 2014    31 March 
                                                      2015             INR'Mn            2015 
                                                     INR'Mn                             INR'Mn 
--------------------------------------  ------  --------------  -------------------  ---------- 
 ASSETS 
 Non-current assets 
 Property, plant and equipment                             104                   98          64 
 Goodwill                                                  432                  432         432 
 Intangible assets                         E             5,830                3,677       4,215 
 Intangible assets under construction      F               810                1,954         999 
 Investment in associate                                   203                  203         184 
 Prepaid leasehold rights                                    9                    9          12 
 Deferred tax asset                                        254                  218         257 
 Deposits                                                    5                   14          14 
                                                --------------  -------------------  ---------- 
 Total non-current assets                                7,647                6,605       6,117 
                                                --------------  -------------------  ---------- 
 Current assets 
 Trade and other receivables                             3,732                3,577       3,833 
 Cash and Bank balances                    D               267                   22         825 
 Total current assets                                    3,999                3,599       4,658 
                                                --------------  -------------------  ---------- 
 Total assets                                           11,646               10,204      10,835 
                                                ==============  ===================  ========== 
 

Condensed Consolidated Statement of Financial Position (Continued)

 
                     GROUP                        Note         As at           As at         As at 
                                                            30 September    30 September    31 March 
                                                                2015            2014          2015 
                                                               INR'Mn          INR'Mn        INR'Mn 
----------------------------------------------  -------  ---------------  --------------  ---------- 
 
 EQUITY AND LIABILITIES 
 EQUITY 
 Issued capital                                    M                   5               5           5 
 Share premium                                                     2,816           2,816       2,816 
 Reverse acquisition reserve                                          55              55          55 
 Capital redemption reserve                                            1               1           1 
 Equity Component of Convertible Instruments                          70               -          70 
 Foreign currency translation reserve                                705             480         214 
 Retained earnings                                                 1,399           1,676       1,419 
                                                         ---------------  --------------  ---------- 
 Equity attributable to owners of the Company                      5,051           5,033       4,580 
                                                         ---------------  --------------  ---------- 
 Non-controlling interests                          L              1,245           1,225       1,100 
 Total equity                                                      6,296           6,258       5,680 
                                                         ---------------  --------------  ---------- 
  Non-current liabilities 
 Interest-bearing loans and borrowings             G               2,419             871       2,589 
 
 Provisions                                                          115             119          77 
                                                         ---------------  --------------  ---------- 
 Total non-current liabilities                                     2,534             990       2,666 
                                                         ---------------  --------------  ---------- 
 Current liabilities 
 Trade and other payables                                            834           1,178         929 
 Bank overdraft                                    D                 496             988         486 
 Interest-bearing loans and borrowings             G               1,150             532         755 
 Provisions                                                          336             258         319 
                                                         ---------------  --------------  ---------- 
 Total current liabilities                                         2,816           2,956       2,489 
                                                         ---------------  --------------  ---------- 
 Total liabilities                                                 5,350           3,946       5,155 
                                                         ---------------  --------------  ---------- 
 Total stockholders' equity and liabilities                       11,646          10,204      10,835 
                                                         ===============  ==============  ========== 
 

These financial statements were approved by the Board of Directors and authorised for use on 9 November 2015.

Signed on behalf of the Board of Directors by:

Director Director

Condensed Consolidated Statement of Changes in Equity for the period ended 30 September 2015

 
                        Equity       Equity      Share        Reverse         Equity          Foreign        Capital       Retained     Attributable       Non-controlling      Total 
        GROUP           shares      Shares -    premium     acquisition    component of      currency       Redemption     earnings     to owners of          interests 
                        -No of       Amount                   reserve       convertible     translation      Reserve                    the Company 
                        Shares                                              instruments       reserve 
                                                                              INR'Mn                                                       INR'Mn              INR'Mn 
                                     INR'Mn     INR'Mn        INR'Mn                          INR'Mn          INR'Mn        INR'Mn                                              INR'Mn 
------------------  -------------  ---------  ----------  --------------  --------------  --------------  -------------  -----------  ---------------  ----------------------  ------- 
 Balance as at 1 
  April, 2014         56,263,047       5         2,816          55              52              529             1           1,557          5,015                1,214           6,229 
 Changes in equity 
 for the year 
 ended 
 31 March, 2015 
 Issue of shares          -            -           -             -               -               -              -             -              -                    -               - 
 Premium on issue         -            -           -             -               -               -              -             -              -                    -               - 
 of shares 
 Equity Component 
  of Convertible 
  Bond                                  -           -             -              18               -              -             -              18                   -               18 
 Other 
  comprehensive 
  income                  -            -           -             -               -             (315)            -             -            (315)                (50)            (365) 
 Income for the 
  year                    -            -           -             -               -               -              -           (138)          (138)                (64)            (202) 
------------------  -------------  ---------  ----------  --------------  --------------  --------------  -------------  -----------  ---------------  ----------------------  ------- 
 Balance as at 
  31 March, 2015      56,263,047       5         2,816           55             70              214             1           1,419          4,580                1,100           5,680 
==================  =============  =========  ==========  ==============  ==============  ==============  =============  ===========  ===============  ======================  ======= 
 Changes in equity 
 for the six 
 months ended 
 30 September 2015 
 Security premium         -            -           -             -               -               -              -             -              -                    -               - 
 on discounting of 
 bond 
 Opening                  -            -           -             -               -               -              -             -              -                    -               - 
 adjustments 
 Other 
  comprehensive 
  income                  -            -           -             -               -              491             -             -             491                  107             598 
 Income for the 

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  period                  -            -           -             -               -               -              -            (20)           (20)                 38               18 
------------------  -------------  ---------  ----------  --------------  --------------  --------------  -------------  -----------  ---------------  ----------------------  ------- 
 Balance as at 
  30 September 
  2015                56,263,047       5         2,816           55             70              705             1           1,399          5,051                1,245           6,296 
==================  =============  =========  ==========  ==============  ==============  ==============  =============  ===========  ===============  ======================  ======= 
  Condensed Consolidated Statement of Changes in Equity for the period ended 30 September 2015 
  (Continued) 
                             Equity      Equity    Share      Reverse       Foreign      Capital     Retained   Attributa 
  ble   Non-controlling   Total 
                              shares     Shares   premium   acquisition    currency     Redemption   earnings     to owne 
  rs       interests 
           GROUP               -No         -                  reserve     translation    Reserve                   of the 
 
                            of Shares    Amount              & equity       reserve                                Compan 
  y 
                                                             component 
 
                                                                of 
 
                                                            convertible 
 
                                                            instruments 
             INR'Mn 
                                                  INR'Mn                    INR'Mn        INR'Mn      INR'Mn 
                          INR'Mn 
                                         INR'Mn               INR'Mn                                               INR'Mn 
   Balance as 
    at 1 April, 
    2013                    42,566,047      4      2,616         55           224            1         1270         4,170 
              1073         5,243 
   Changes in 
    equity for 
    the year ended 
    31 March 2014 
                           13,697,000      1         -           -             -            -           -            1 
               -            1 
   Issue of shares              -           -       200          -             -             -           -           200 
               -            200 
    Premium on 
     issue of shares            -           -        -           -             -             -           -            - 
               -             - 
    Equity Component 
     of Convertible 
     Bond 
    Other comprehensive 
     Income                     -           -        -           -            305            -           -           305 
               51           356 
   Income for 
    the year                    -          -         -           -             -            -          327          327 
              102          429 
  ----------------------  ------------  -------  --------  ------------  ------------  -----------  ---------  ---------- 
  ---  ----------------  ------- 
   Balance as 
    at 31 March, 
    2014                   56,263,047      5       2,816        55            529           1         1,597        5,003 
             1,226        6,229 
  ======================  ============  =======  ========  ============  ============  ===========  =========  ========== 
  ===  ================  ======= 
   Changes in 
    equity for 
    the six months 
    ended                       -           -        -           -             -             -           -            - 
               -             - 
    30 September                -           -        -           -             -             -           -            - 
               -             - 
    2014 
    Issue of shares 
    during the 
    period 
    Premium on 
    issue of shares 
   Opening adjustments          -          -         -           -             -            -           44           44 
               -            44 
   Other comprehensive 
    Income                      -          -         -           -           (49)           -           -           (49) 
              (5)          (54) 
   Income for 
    the period                  -          -         -           -             -            -           35           35 
               4            39 
  ----------------------  ------------  -------  --------  ------------  ------------  -----------  ---------  ---------- 
  ---  ----------------  ------- 
   Balance as 
    at 30 September2014    56,263,047      5       2,816        55            480           1         1,676        5,033 
             1,225        6,258 
  ======================  ============  =======  ========  ============  ============  ===========  =========  ========== 
  ===  ================  ======= 
 
 

Condensed Consolidated Statement of Cash Flows for the period ended 30 September 2015

 
             GROUP                Note          Six months              Six months           Year 
                                                   ended                   ended             ended 
                                               30 September            30 September            31 
                                                   2015                    2014              March 
                                                  INR'Mn                  INR'Mn              2015 
                                                                                             INR'Mn 
-------------------------------  ------  -----------------------  ---------------------  ------------ 
 
 Cash flows from operating 
  activities 
 Profit/(Loss) for the 
  period before tax                                           78                      4         (129) 
 Adjustments for: 
 Depreciation and amortization                               160                    160           466 
 Opening adjustment                                                                 (6) 
 Financial income                   J                        (3)                     22           (5) 
 Financial expenses                 J                        313                    180           452 
 Provisions for employee 
  benefits                                                  (46)                      4            57 
 Provision for bad and 
  doubtful debts (net)                                         -                      3           (4) 
 Provision for retakes              H                         11                    (1)             - 
 Loss/(gain)on foreign 
  exchange fluctuations                                    (223)                   (25)         (371) 
 Share of gain/(loss) 
  of associate                                               (5)                    (2)             3 
 Gain /(loss) on sale 
  of property, plant 
  and equipment                                                -                      -          (46) 
                                         -----------------------  ---------------------  ------------ 
 Operating cash flows 
  before changes in working 
  capital                                                    285                    339           423 
                                         -----------------------  ---------------------  ------------ 
 
   Decrease /(increase) 
   in trade and other 
   receivables                                                71                  (505)         (778) 
 Employee benefits paid                                       38                    (1)          (39) 
 (Decrease)/increase 
  in trade and other 
  payables                                                   233                    370            19 
                                         -----------------------  ---------------------  ------------ 
                                                             627                    203         (375) 
 Income taxes paid                                          (35)                      4          (17) 
                                         -----------------------  ---------------------  ------------ 
 Net cash generated 
  from / (used in) operating 
  activities                                                 592                    207         (392) 
                                         =======================  =====================  ============ 
 
 
 

Condensed Consolidated Statement of Cash Flows for the period ended 30 September, 2015 (Continued)

 
             GROUP                Note       Six months        Six months         Year 
                                                ended             ended           ended 
                                             30 September      30 September     31 March 
                                                 2015              2014           2015 
                                                INR'Mn            INR'Mn         INR'Mn 
-------------------------------  ------  ------------------  --------------  ------------- 
 
 Cash flows from investing 
  activities 
 Acquisition of property, 
  plant and equipment                                  (64)             (1)           (84) 
 Acquisition and advances 
  paid for distribution 
  rights                                              (824)           (116)            152 
 Proceeds from sale 
  of property, plant 
  and equipment                                                           1              - 
 Finance income                                           3            (22)              5 
 Net cash generated 
  from/(used in) investing 
  activities                                          (885)           (138)             73 
                                         ------------------  --------------  ------------- 
 
 Cash flows from financing 
  activities 
 Proceeds from borrowings 

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  from term loans                                       183              49            372 
 Repayment of term loans                              (277)            (90)          (248) 
 Premium collected on 
  issue of shares                                         -               -             18 
 Proceed form Convertible 
  Bond                                                    -               -          1,708 
 Interest paid                                        (173)           (186)          (452) 
 Net cash generated 
  from /(used in) financing 
  activities                                          (267)           (227)          1,398 
                                         ------------------  --------------  ------------- 
 
 Net increase/(decrease) 
  in cash and cash equivalents                        (560)           (158)          1,079 
 Cash and cash equivalents 
  at beginning of period                                825              28             28 
 Bank overdraft at beginning 
  of period                                           (486)           (872)          (872) 
 Gain / (loss) on foreign 
  exchange fluctuations                                 (8)              36            104 
                                         ------------------  --------------  ------------- 
 Cash and cash equivalents 
  at the end of period 
  / year                            D                 (229)           (966)            339 
                                         ==================  ==============  ============= 
 
 

Notes to Condensed Consolidated Financial Statements

   NOTE A -       BASIS OF PREPARATION 

1. General information

DQ Entertainment Plc. (the "Company" or DQ Plc.) is a Company domiciled and incorporated in the Isle of Man on 19 April 2007 and was admitted to the Alternative Investment Market of London Stock Exchange on 18 December 2007.

The condensed consolidated financial statements for the six months period ended 30 September 2015, comprises the financial information of the Company, its subsidiary and associates (together referred to as the "Group').

As on 30 September 2015 the following companies formed part of the Group:

 
 Company                 Immediate Parent         Country         % of Interest 
                                              of Incorporation 
----------------------  ------------------  -------------------  -------------- 
 Subsidiaries 
------------------------------------------------------------------------------- 
 DQ Entertainment 
  (Mauritius) Limited    DQ Entertainment 
  (DQM)                   Plc.               Mauritius            100 
----------------------  ------------------  -------------------  -------------- 
 DQ Entertainment 
  (International) 
  Limited (DQ India) 
  was formerly known 
  as "Animation and      DQ Entertainment 
  Multimedia Private      (Mauritius) 
  Limited"                Limited            India                75 
----------------------  ------------------  -------------------  -------------- 
 DQ Entertainment        DQ Entertainment 
  (Ireland) Limited       (International) 
  (DQ Ireland)            Limited            Ireland              100 
----------------------  ------------------  -------------------  -------------- 
 DQ Entertainment        Joint Venture 
  (International)         Company by DQ 
  Films Limited (DQ       India and DQ 
  Films)                  Plc.               Ireland              30 
----------------------  ------------------  -------------------  -------------- 
 DQ Entertainment        DQ Entertainment 
  Peter Pan 2 Limited     Ireland Limited    Ireland              100 
----------------------  ------------------  -------------------  -------------- 
 Associate 
------------------------------------------------------------------------------- 
 Method Animation SAS                        France               20 
------------------------------------------  -------------------  -------------- 
 

The Company's registered address is 33-27, Athol Street, Douglas, IM1 1LB, Isle of Man.

The Group is primarily engaged in the business of providing Traditional and Digital Animation for Television, Home Video and Feature Films. The Group also is engaged in exploitation of its Distribution Rights to broadcasters, television channels, home video distributors and others.

The functional currencies of the respective Group companies are:

 
 DQ Plc.            British Pound (GBP) 
-----------------  -------------------- 
 DQ Mauritius       US Dollar (USD) 
-----------------  -------------------- 
 DQ India           Indian Rupee (INR) 
-----------------  -------------------- 
 DQ Ireland         Euro (EURO) 
-----------------  -------------------- 
 DQ Films           Euro (EURO) 
-----------------  -------------------- 
 DQ Peter Pan       Euro (EURO) 
  2 
-----------------  -------------------- 
 Method Animation   Euro (EURO) 
  SAS 
-----------------  -------------------- 
 
   NOTE B -       STANDARDS AND INTERPRETATIONS NOT YET APPLIED 
 
 Standard or Interpretation's   Details of change            Effective for 
                                                              reporting periods 
                                                              starting on or 
                                                              after 
-----------------------------  ---------------------------  -------------------- 
 IFRS2                          Amendments resulting         Annual periods 
                                 from Annual Improvement's    beginning on 
                                 2010-2012 Cycle              or after 1 July 
                                 (definition of               2014 
                                 'vesting condition) 
-----------------------------  ---------------------------  -------------------- 
 IFRS 3                         Amendments resulting         Annual periods 
                                 from Annual Improvement's    beginning on 
                                 2010-2012 Cycle              or after 1 July 
                                 (accounting for              2014 
                                 contingent Consideration) 
-----------------------------  ---------------------------  -------------------- 
                                Amendments resulting         Annual periods 
                                 from Annual Improvement's    beginning on 
                                 2011-2013 Cycle              or after 1 July 
                                 (scope exception             2014 
                                 for joint ventures) 
-----------------------------  ---------------------------  -------------------- 
 IFRS 5                         Amendments resulting         Annual periods 
                                 from September               beginning on 
                                 2014 Annual Improvement's    or after 1 January 
                                 to IFRSs                     2016 
-----------------------------  ---------------------------  -------------------- 
 IFRS 7                         Deferral of mandatory        Annual periods 
                                 effective date               beginning on 
                                 of IFRS 9 and                or after 1 January 
                                 amendments to                2015 
                                 transition disclosures 
-----------------------------  ---------------------------  -------------------- 
 IFRS 7                         Amendments resulting         Annual periods 
                                 from September               beginning on 
                                 2014 Annual Improvements     or after 1 January 
                                 to IFRS's                    2016 
-----------------------------  ---------------------------  -------------------- 
 IFRS 8                         Amendments results           Annual periods 
                                 from Annual Improvement's    beginning on 
                                 2010-2012 Cycle              or after 1 July 
                                 (aggregation                 2014 
                                 of segments, 
                                 reconciliation 
                                 of segment assets) 
-----------------------------  ---------------------------  -------------------- 
 IFRS 9                         Deferral of mandatory        Annual periods 
                                 effective date               beginning on 
                                 of IFRS 9 and                or after 1 January 
                                 amendments to                2015 
                                 transition disclosures 
-----------------------------  ---------------------------  -------------------- 
 IFRS 9                         Finalised version,           Annual periods 
                                 incorporating                beginning on 
                                 requirements                 or after 1 January 
                                 for classification           2018 
                                 and measurement, 
                                 impairment, general 
                                 hedge accounting 
                                 and derecognition 
-----------------------------  ---------------------------  -------------------- 
 IFRS 10                        Amendments regarding         Annual periods 
                                 the sale or contribution     beginning on 
                                 of assets between            or after 1 January 
                                 an investor and              2016 
                                 its associate 
                                 or joint venture 
-----------------------------  ---------------------------  -------------------- 
 IFRS 10                        Amendments regarding         Annual periods 
                                 the application              beginning on 

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                                 of the consolidation         or after 1 January 
                                 exception                    2016 
-----------------------------  ---------------------------  -------------------- 
 IFRS 11                        Amendments regarding         Annual periods 
                                 the accounting               beginning on 
                                 for acquisitions             or after 1 January 
                                 of an interest               2016 
                                 in joint operation 
-----------------------------  ---------------------------  -------------------- 
 IFRS 12                        Amendments regarding         Annual periods 
                                 the application              beginning on 
                                 of the consolidation         or after 1 January 
                                 exception                    2016 
-----------------------------  ---------------------------  -------------------- 
 IFRS 13                        Amendments resulting         Annual periods 
                                 from Annual Improvements     beginning on 
                                 2011-2013 Cycle              or after 1 July 
                                 (scope of the                2014 
                                 portfolio exception 
                                 in paragraph 
                                 52) 
-----------------------------  ---------------------------  -------------------- 
 IFRS 15                        Original issue               Annual periods 
                                 and amendments               beginning on 
                                 to defer the                 or after 1 January 
                                 effective date               2018 
-----------------------------  ---------------------------  -------------------- 
 IAS 1                          Amendments resulting         Annual periods 
                                 from the disclosure          beginning on 
                                 initiative                   or after 1 January 
                                                              2016 
-----------------------------  ---------------------------  -------------------- 
 IAS 19                         Amendments resulting         Annual periods 
                                 from September               beginning on 
                                 2014 Annual Improvements     or after 1 January 
                                 to IFRS's                    2016 
-----------------------------  ---------------------------  -------------------- 
                                Amendments to                Annual periods 
                                 clarify the requirements     beginning on 
                                 that relate to               or after 1 July 
                                 how contributions            2014 
                                 from employees 
                                 or third parties 
                                 that are linked 
                                 to service should 
                                 be attributed 
                                 to periods of 
                                 service 
-----------------------------  ---------------------------  -------------------- 
 IAS 24                         Amendments resulting         Annual periods 
                                 from Annual Improvements     beginning on 
                                 2010-2012 Cycle              or after 1 July 
                                 (management entities)        2014 
-----------------------------  ---------------------------  -------------------- 
 IAS 28                         Amendments regarding         Annual periods 
                                 the application              beginning on 
                                 of the consolidation         or after 1 January 
                                 exception                    2016 
-----------------------------  ---------------------------  -------------------- 
 IAS 34                         Amendments resulting         Annual periods 
                                 from September               beginning on 
                                 2014 Annual Improvement's    or after 1 January 
                                 to IFRSs                     2016 
-----------------------------  ---------------------------  -------------------- 
 IAS 38                         Amendments regarding         Annual periods 
                                 the clarification            beginning on 
                                 of acceptable                or after 1 January 
                                 methods of depreciation      2016 
                                 and amortisation 
-----------------------------  ---------------------------  -------------------- 
 

Based on the Company's current business model and accounting policies, management does not expect any material impact on the Company's consolidated financial statements when any of the above standards or interpretations becomes effective. There are no other IFRS or IFRIC interpretations that are effective subsequent to the company's financial year end that would have a material impact on the group.

The Company does not intend to apply any of these pronouncements early.

1. Significant accounting policies

The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the period ended 30 September, 2015, which have been prepared in accordance with International Financial Reporting Standards ('IFRS's)

In the opinion of management, all adjustments, which are of a normal recurring nature and necessary for a fair presentation, have been included. The Company has chosen to present the condensed consolidated financial position, condensed consolidated income statement, condensed consolidated comprehensive income statement, condensed consolidated statement of cash flows and condensed consolidated statement of changes in equity along with selected explanatory notes. Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with IFRS have been condensed or omitted, although the Company believes that the disclosures made are adequate to make the information presented not misleading. These condensed consolidated financial statements have been prepared using the same accounting policies that were applied in the preparation of the Company's interim consolidated financial statements for the period ended 30 September, 2015.

The directors have had regard to the 12 month period from the date of approval of the interim financial statements and have reviewed the forecasted cash flows. The Company has sufficient resources to meet its on-going liabilities as they fall due.

   NOTE C -       SEGMENT REPORTING 

Segment information is presented in respect of the Group's business and geographical segments. The primary format, business segments, is based on the Group's management and internal reporting structure.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly interest-bearing loans, borrowings and expenses, and corporate assets and expenses.

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one period.

Business segments

The Company comprises the following main business segments:

Animation production:

The production services rendered to production houses and training rendered for acquiring skills for production services in relation to the production of animated television series and movies.

Distribution:

The revenue generated from the exploitation of the distribution rights of animated television series.

The following is an analysis of the Company's revenue and results by operating segment for the periods under review:

 
                                      Segment Revenue                            Segment Result 
                        ------------------------------------------  ---------------------------------------- 
         GROUP            Six months          Six          Year       Six months      Six months      Year 
                             ended           months        ended         ended           ended        ended 
                          30 September       ended        31 March    30 September    30 September      31 
                              2015        30 September      2015          2015            2014        March 
                             INR'Mn           2014         INR'Mn        INR'Mn          INR'Mn        2015 
                                             INR'Mn                                                   INR'Mn 
----------------------  --------------  --------------  ----------  --------------  --------------  -------- 
 
 Animation production              633             500       1,303             227             171       703 
 Distribution                      103             233         525            (80)             107       137 
 Total                             736             733       1,828             147             278       840 
 Unallocated 
  expenses                                                                    (69)           (274)     (969) 
                                                                                                    -------- 
 Profit before 
  tax                                                                           78               4     (129) 
 Income tax expense                                                           (60)              35      (73) 
                                                                    --------------  --------------  -------- 
 Profit/Loss 

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  for the period/year                                                           18              39    (202) 
                                                                    --------------  --------------  -------- 
 
 
 
 
   NOTE D -      CASH AND CASH EQUIVALENTS 
 
                       GROUP     30 September    30 September       31 March 
                                     2015             2014            2015 
                                    INR'Mn           INR'Mn          INR'Mn 
-----------------------------  ---------------  --------------  --------------- 
 
   Cash and bank balances                  247               3              805 
 Call deposits                             20               19              20 
                               ---------------  --------------  --------------- 
 Cash and bank balances                    267              22             825 
                               ---------------  --------------  --------------- 
 
 Bank overdraft                          (496)           (988)            (486) 
                               ---------------  --------------  --------------- 
 Cash and cash equivalents 
  in the statement of cash 
  flows                                  (229)           (966)            (339) 
                               ---------------  --------------  --------------- 
 
   NOTE E -      INTANGIBLE ASSETS 
 
                      GROUP                        30 September   30 September 2014   31 March 
                                                       2015             INR'Mn          2015 
                                                      INR'Mn                           INR'Mn 
------------------------------------------------  -------------  ------------------  --------- 
 
 Cost 
 Opening balance                                          5,581               4,616      4,616 
 Acquisitions/transfer from 
  assets under construction/recoupment                    1,129                 461        704 
 Disposals                                                 (68)                (76)      (133) 
 Translation adjustment                                     512               (145)        394 
                                                  -------------  ------------------  --------- 
 Closing balance                                          7,154               4,856      5,581 
                                                  -------------  ------------------  --------- 
 
 Amortisation 
 Opening balance                                          1,366               1,142      1,161 
 Amortisation due to change of laws                           -                   -       (19) 
 Amortisation expense                                       148                 128        262 
 Impairment losses recognised in profit or loss               -                   -        118 
 Disposal                                                                      (76)       (76) 
 Translation adjustment                                   (190)                (15)       (80) 
                                                  -------------  ------------------  --------- 
                                                          1,324               1,179      1,366 
                                                  -------------  ------------------  --------- 
 
 Carrying amounts 
                                                  -------------  ------------------  --------- 
 At beginning of period/year                              4,215               3,474      3,455 
                                                  -------------  ------------------  --------- 
 At end of period/year                                    5,830               3,677      4,215 
                                                  -------------  ------------------  --------- 
 
   NOTE F -       INTANGBILE ASSETS UNDER CONSTRUCTION 

Intangible assets under construction include amounts paid to the producers for acquisition of the distribution rights and amounts incurred on internally generated intellectual property rights pending for capitalisation. These advances are transferred to distribution rights on completion of the entire production activities and when the asset is ready for exploitation.

 
              GROUP                30 September 2015   30 September 2014   31 March 
                                         INR'Mn              INR'Mn          2015 
                                                                            INR'Mn 
--------------------------------  ------------------  ------------------  --------- 
 Opening balance                                 999               2,210      2,210 
 Acquisitions                                     17                 385        249 
 Transfers to intangible assets                (270)               (547)      (327) 
 Translation adjustment                           64                (94)     (1133) 
                                  ------------------  ------------------  --------- 
 Closing balance                                 810               1,954        999 
                                  ------------------  ------------------  --------- 
 
 
 
   NOTE G -      INTEREST BEARING LOANS AND BORROWINGS 

Interest bearing loans and borrowings comprise the following:

 
            GROUP              30 September   30 September   31 March 
                                   2015           2014         2015 
                                  INR'Mn         INR'Mn       INR'Mn 
----------------------------  -------------  -------------  --------- 
 Non-current liabilities: 
 Secured bank loans & Bond            2,419            871      2,589 
 Finance lease liabilities                -              -          - 
                                      2,419            871      2,589 
                              -------------  -------------  --------- 
 Current liabilities: 
 Current portion of secured 
  bank loans                          1,150            532        755 
 Finance lease liabilities                -              -          - 
                                      1,150            532        755 
                              -------------  -------------  --------- 
 
   NOTE H -      PROVISION FOR RETAKES 
 
            GROUP              30 September   30 September   31 March 
                                   2015           2014         2015 
                                  INR'Mn         INR'Mn       INR'Mn 
----------------------------  -------------  -------------  --------- 
 Opening balance                         13             13         13 
 Provisions made during 
  the period/ year                       11              -         14 
 Provisions used during 
  the period/ year                       -              -           - 
 Provisions reversed during 
  the period/ year                                     (1)       (14) 
 Closing balance                         24             12         13 
                              -------------  -------------  --------- 
 

Retakes include creative changes to the final product delivered to the customer, performed on the specific request of the customer at the Group's own cost. Requests for retakes will be accepted from customers by the Group for a maximum period of three months from the final delivery and hence the provision is not discounted.

   NOTE I -        PERSONNEL  COSTS 

Details of personnel expenses included in cost of sales, administrative and distribution expenses are as follows:

 
                      GROUP                         30 September 2015   30 September 2014   31 March 
                                                          INR'Mn              INR'Mn          2015 
                                                                                             INR'Mn 
-------------------------------------------------  ------------------  ------------------  --------- 
 Wages and salaries                                               246                 292        551 
 Contributions to defined contribution plans                       15                  20         37 
 Increase in liability for defined benefit plans                   11                   7         38 
 Increase in liability for compensated absences                     2                 (1)          8 
                                                                  274                 318        634 
                                                   ------------------  ------------------  --------- 
 
 Cost of sales                                                    250                 312        513 
 Administrative expenses                                           23                   4        117 
 Distribution expenses                                              1                   2          4 
 
   NOTE J -        NET FINANCING COSTS 
 
                            GROUP                               30 September 2015   30 September 2014   31 March 
                                                                      INR'Mn              INR'Mn          2015 
                                                                                                         INR'Mn 
-------------------------------------------------------------  ------------------  ------------------  --------- 
 Interest income                                                                3                   3          5 
                                                               ------------------  ------------------  --------- 
 Financial income                                                               3                   3          5 
                                                               ------------------  ------------------  --------- 
 
 Interest on short term borrowings and other financing costs                 (38)                (40)      (105) 
 Interest on term loans                                                     (275)               (103)      (316) 
 

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 Financial expenses                                                         (313)               (143)      (421) 
                                                               ------------------  ------------------  --------- 
 Net financing costs                                                        (310)               (140)      (416) 
                                                               ------------------  ------------------  --------- 
 
 
   NOTE K -       EARNINGS PER SHARE ("EPS") 

Profit attributable to ordinary shareholders

 
                               GROUP                                  30 September 2015   30 September 2014   31 March 
                                                                            INR'Mn              INR'Mn          2015 
                                                                                                               INR'Mn 
-------------------------------------------------------------------  ------------------  ------------------  --------- 
 Profit attributable to ordinary shareholders                                      (20)                  35      (138) 
 Weighted average number of ordinary shares outstanding during the 
  period(in thousand)                                                            55,889              55,889      55889 
 Basic EPS (Cents)                                                               (0.36)                   1        (2) 
 Diluted EPS (cents)                                                             (0.36)                   1        (2) 
 

The Group does not have any dilutive instruments for any of the periods ended 30 September 2015 or 30 September 2014 and for the year ended 31 March, 2015 and as such Diluted EPS equals Basic EPS.

   NOTE L -        NON - CONTROLLING INTERESTS 
 
            GROUP                30 September   30 September   31 March 
                                     2015           2014         2015 
                                    INR'Mn         INR'Mn       INR'Mn 
----------------------------  ---------------  -------------  --------- 
 Balance at beginning 
  of period/year                      1,100        1,226        1,214 
 Profit/(Loss) for the 
  period                                 38           4          (64) 
 Other comprehensive income 
  for the period/year                   107           (5)        (50) 
 Closing balance                        1,245      1,225        1,100 
                              ---------------  -------------  --------- 
 
   NOTE M -      EQUITY 
   a)   Ordinary shares 

DQ Plc. presently has only one class of ordinary shares. For all matters submitted to vote in the shareholders' meeting, every holder of ordinary shares, as reflected in the records of the Company on the date of the shareholders' meeting, has one vote in respect of each share held. All shares are equally eligible to receive dividends and the repayment of capital in the event of liquidation of the Company.

The Company has an authorized share capital of 60,000,000 equity shares of 0.1 pence each.

 
       GROUP         30 September   30 September    31 March 
                         2015           2014          2015 
------------------  -------------  -------------  ----------- 
 Number of shares 
 Opening balance       56,263,047     56,263,047   56,263,047 
 
 
 Closing balance       56,263,047     56,263,047   56,263,047 
                    -------------  -------------  ----------- 
 
 

Issue of ordinary shares

 
        GROUP          30 September       30 September      31 March 
                           2015               2014            2015 
                          INR'Mn             INR'Mn          INR'Mn 
-------------------  --------------  -----------------  ------------ 
 Share capital 
 Opening balance            5                5                5 
 
   Closing balance          5                5                5 
                     --------------  -----------------  ------------ 
 
 
   NOTE M -      EQUITY (Continued) 

Share premium - The amount received by the company over and above the par value of shares issued is shown under this heading.

 
      GROUP         30 September   30 September         31 March 
                        2015           2014               2015 
                       INR'Mn         INR'Mn             INR'Mn 
-----------------  -------------  -------------  --------------------- 
 Share premium 
 Opening balance           2,816          2,816                  2,816 
 Issued for cash               -              -                      - 
                   -------------  -------------  --------------------- 
 Closing balance           2,816          2,816                  2,816 
                   -------------  -------------  --------------------- 
 
 

The share premium reserve can be utilised by the Company for the declaration of bonus shares and for offsetting incremental costs directly attributable to the issues of new shares.

   b)   Reserves 

Translation reserve - Assets, liabilities, income, expenses and cash flows are translated into Indian Rupees (presentation currency) from US Dollars (functional currency of DQ Mauritius), Euros (functional currency of DQ Ireland and DQ Films Ltd) and Great British Pounds (functional currency of DQ Plc.). The exchange difference arising out of the period-end translation is debited or credited to foreign currency translation reserve.

The movements in this reserve which are attributable to the controlling interests are set out below:

 
                  GROUP       30 September         30 September      31 March 
                                   2015                 2014           2015 
                                  INR'Mn               INR'Mn         INR'Mn 
------------------------  --------------------  ------------------  --------- 
 Opening balance                       214                  529           529 
 Increase/(decrease) 
  during the period                        491                (49)      (315) 
                          --------------------  ------------------  --------- 
 Closing balance                       705                   480          214 
                          --------------------  ------------------  --------- 
 

Exchange differences relating to the translation of the net assets of the Group's foreign operations from their functional currencies to the Group's presentation currency (i.e. INR) are recognised directly in other comprehensive income and accumulated in the foreign currency translation reserve.

Accumulated earnings - Accumulated earnings include all current and prior period results as disclosed in the income statement which are attributable to the controlling interests. The movements in the accumulated earnings are set out below:

 
                    GROUP     30 September    30 September   31 March 
                                  2015            2014         2015 
                                 INR'Mn          INR'Mn       INR'Mn 
--------------------------  ---------------  -------------  --------- 
 Opening balance                     1,419           1,597      1,557 
 Opening P&L adjustment                 -               44 
 Profit for the period                 (20)             35      (138) 
                            ---------------  -------------  --------- 
 Closing balance                    1,399            1,676      1,419 
                            ---------------  -------------  --------- 
 

Other reserves - The Reverse acquisition reserve, equity component of convertible instruments and

capital redemption reserve are non-distributable in nature.

   NOTE N -      CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES 
 
                               GROUP                                  30 September 2015   30 September 2014   31 March 
                                                                            INR'Mn              INR'Mn          2015 
                                                                                                               INR'Mn 
-------------------------------------------------------------------  ------------------  ------------------  --------- 
 Capital commitments: 
 Purchase of property, plant and equipment                                            -                   -          - 
 Purchase of distribution rights                                                    362                 386        361 
 
 Contingent liabilities: 
 Outstanding letters of credit for capital investments                            1,280               1,063      1,039 
 Bonds executed in favour of Indian customs and excise authorities                    1                   3          3 
 Claims not acknowledged as debts                                                    58                   -      58.06 
 
   NOTE O -      RELATED PARTIES 

Identity of related parties

DQ Plc. has a related party relationship with its directors, executive officers, subsidiaries and associate.

DQ Plc. does not have any ultimate controlling entity.

Related parties and their relationships

   a)    Subsidiaries 

DQ Entertainment (Mauritius) Limited (with effect from 27 November 2007)

DQ Entertainment (International) Limited (with effect from 18 February 2008)

DQ Entertainment (Ireland) Limited (with effect from 12 November 2008)

DQ Peter Pan 2 Limited (with effect from 1st April 2013)

   b)   Joint Venture 

DQ Entertainment (International) Films Limited (with effect from 11 March 2013)

   c)    Associate 

Method Animation SAS (with effect from 28 March 2008)

   d)   Key management personnel 

Mr. Tapaas Chakravarti - Director

Mr. S. Sunder Srinivasa Raghavan - Director

Ms. Rashida Adenwala - Director

e) Relatives of Key Management Personnel and Directors with whom DQ India has transactions with during the period:

Mrs. Rashmi Chakravarti (wife of Mr. Tapaas Chakravarti)

Ms Nivedita Chakravarti (daughter of Mr.Tapaas Chakravarti)

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