TIDMMORT

RNS Number : 4881L

Mortice Limited

27 December 2018

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR)

Mortice Limited

("Mortice", the "Group" or the "Company")

Results for the Half Year ended 30 September 2018

Mortice Limited (AIM: MORT), the AIM listed security and facilities management company, announces its unaudited results for the half year ended 30 September 2018.

Financial results highlights:

   --      Revenues from operations grew by 9.75% to $116.7 m (HY 2017: $106.3m) 

o Man Guarding business increased by 14.11% to $63.9m (HY 2017: $56.0m)

-- Contributing 55% of group revenues

o Facilities Management business revenue grew 4.85% to $52.5m (HY 2017: $50.0m)

-- Contributing 45% of group revenues

o 19.13% ($12.6m) growth from Indian Operations

o 5.54% ($2.2m) decline in growth from Tenon FM UK

-- Tenon FM UK- Revenue $33.2m (HY 2017: $35.4m)

-- Frontline - Revenue $5m (HY 2017: $5m)

o Revenue MIX current year first half

-- India - 67.3%

-- UK - 28.4%

-- Singapore - 4.3%

   --      Adjusted EBITDA* has grown by 8.57% to $5.18m  (HY 2017: $4.8m) 
   --      Adjusted profit before taxation* grown by 4.47% to $2.3m  (HY 2017: $2.2m) 
   --      Net debt of $20.1m (FY 2018: $18.4m) increased for working capital growth. 

*EBITDA and PBT have been adjusted for the currency translation gain or loss and loss from financial liability, loss of $0.70 million for currency translation in first half of CY 2018-19 (HY 2017: $0.04 m loss),

Operational highlights:

-- Acquired the remaining 49% of Frontline Security Pte ltd in May,2018 at 3.5 million SGD, payable in four trenches until 30 June,2019, to date 3.0 million SGD has been paid

-- During H1- more than 150 new clients have been added across the geographies, some of the clients are as:

Delhi Integrated Multi-Model Transit System Ltd.(DIMTS), Amazon Development Center India Pvt Ltd, Hsbc Electronic Data Processing India Pvt Ltd, Odisha Power Generation Corporation Limited, BMW India , GE Aviation Engine Services, Knight Frank Property Asset Management Pte Ltd, Global Maritime and Port Services Pte Ltd , Yongnam Engineering and Construction (Pte) Ltd, Marinte knik Shipbuilders (S) Pte Ltd, MCSL Management Pte Ltd., London Academy of Music and Dramatic art

Post Period End:

-- Share buyback of 1,094,400 ordinary shares was completed from the UK vendor of Office & General Group Limited

   --      Frontline Security Pte Ltd has been renamed as Peregrine Security Pte Ltd. 

Major Manjit Rajain, Executive Chairman of Mortice Limited, said:

"The Company has demonstrated once again its ability to integrate the businesses and drive the growth across different geographies and business segments. The Group is investing heavily on technology for on boarding new clients and improving the processes to drive internal efficiency and productivity as well as scale up Mortice's businesses."

 
 Mortice Limited                                     www.morticegroup.com 
 Manjit Rajain, Executive Chairman                  Tel: +91 981 800 0011 
 
 finnCap Ltd                                           Tel: 020 7220 0500 
  Carl Holmes/ Giles Rolls (Corporate 
   Finance) 
 
 
 
 
 

About Mortice Limited

Mortice (AIM: MORT), is an AIM listed security and facilities management company, incorporated in Singapore and based in India with additional operations in Singapore and the UK.

Mortice operates under two brands, in India:

-- Peregrine - provision of guarding and security services to a wide range of clients from blue-chip companies, smaller businesses, commercial and private properties, and individuals.

-- Tenon - provision of a full range of facilities management services to corporate occupiers, owners and developers of real estate. Clients include some of the world's most respected blue chip and home-grown companies. Within the Tenon group, Mortice also offers security surveillance services through its subsidiary Soteria and mechanical and engineering services via Rotopower

The business is growing and profitable and is focused on expanding its geographical footprint and growing through targeted acquisitions, as well as organically.

In 2015 the Company established Tenon UK and through this wholly owned subsidiary, acquired UK based Office & General Group Limited (O&G"), an independent property service company specialising in cleaning and providing support services such as environmental solutions and built fabric maintenance in the UK. In addition, the Company acquired a 51% majority stake in Singapore-based security company Peregrine Security Pte Ltd (Formerly known as Frontline Security Pte. Ltd), and in 2018 the company acquired remaining 49% stake of Peregrine Security Pte Ltd (formerly known as Frontline Security Pte. Ltd).

The unaudited interim financial statements will be available on the Company's website: www.morticegroup.com.

 
 Unaudited condensed consolidated statement of financial position 
  (All amounts in United States Dollars, unless otherwise stated)                                         As at   As at                           As at 
  ------------------------- 
                               30 September 2018    30 September                31 March 
                                                            2017 
                                     (Unaudited)     (Unaudited)                    2018 
                                                                               (Audited) 
  -------------------------  -------------------  --------------  ---------------------- 
   Assets 
 
    Non-current 
   Goodwill                           10,458,434      10,608,622              11,179,407 
   Other intangible assets             8,101,003       9,207,201               9,557,385 
   Property, plant and 
    equipment                          3,912,812       4,304,131               3,720,191 
   Long-term financial 
    assets                               867,420       1,464,711               1,524,252 
   Deferred tax assets                 2,467,281       2,581,304               2,579,392 
   Other non-current assets            3,965,035       3,869,216               4,898,034 
  -------------------------  -------------------  --------------  ---------------------- 
   Non-current assets                 29,771,985      32,035,185              33,458,661 
  -------------------------  -------------------  --------------  ---------------------- 
 
    Current Assets 
   Inventories                           696,516         675,330                 698,381 
   Trade and other 
    receivables                       53,798,181      50,057,891              51,380,040 
   Cash and cash 
    equivalents                        2,606,841       3,159,591               4,192,791 
   Current assets                     57,101,538      53,892,812              56,271,212 
  -------------------------  -------------------  --------------  ---------------------- 
 
   Total assets                       86,873,523      85,927,997              89,729,873 
  =========================  ===================  ==============  ====================== 
 
    Equity and liabilities 
 
    Equity 
   Share capital                      12,915,135      17,358,536              12,915,135 
   Reserves                            5,945,788       4,396,503               6,042,972 
  -------------------------  -------------------  --------------  ---------------------- 
                                      18,860,923      21,755,039              18,958,107 
   Non-controlling 
    interests                             57,472       3,211,024               3,265,468 
  -------------------------  -------------------  --------------  ---------------------- 
   Total equity                       18,918,395      24,966,063              22,223,575 
  =========================  ===================  ==============  ====================== 
   Liabilities 
   Non-current 
   Employee benefit 
    obligations                        2,456,942       1,883,625               2,138,105 
   Deferred tax liability              1,574,875       1,173,312               1,720,117 
   Borrowings                          6,425,037       4,422,899               7,460,800 
   Non-current liabilities            10,456,854       7,479,836              11,319,022 
  -------------------------  -------------------  --------------  ---------------------- 
 
    Current 
   Trade and other payables           39,662,294      36,900,039              39,946,303 
   Employee benefit 
    obligations                          881,491         694,183               1,086,284 
   Borrowings                         16,954,489      15,887,876              15,154,689 
   Current liabilities                57,498,274      53,482,098              56,187,276 
  -------------------------  -------------------  --------------  ---------------------- 
   Total liabilities                  67,955,128      60,961,934              67,506,298 
   Total equity and 
    liabilities                       86,873,523      85,927,997              89,729,873 
  =========================  ===================  ==============  ====================== 
 
 
  The annexed notes form an integral part of and should be read in conjunction 
  with these condensed financial statements. 
 

Unaudited condensed consolidated statement of profit or loss and other comprehensive income

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

 
                                                                          Six months ended                                            Six months 
                                                                                                                                           ended 
                                                                         30 September 2018                                          30 September 
                                                                                                                                            2017 
                                                                               (Unaudited)                                           (Unaudited) 
------------------------------------  ----------------------------------------------------  ---------------------------------------------------- 
 Income 
  Service revenue                                                              116,682,016                                           106,315,772 
 
  Other income                                                                     255,600                                               822,231 
------------------------------------  ----------------------------------------------------  ---------------------------------------------------- 
 Total income                                                                  116,937,616                                           107,138,003 
 
 Expenses 
   Staff and related costs                                                      98,803,785                                            92,137,446 
  Materials consumed                                                             7,350,234                                             4,629,749 
  Other operating expenses                                                       6,308,464                                             5,272,426 
  Depreciation and amortization                                                  1,485,309                                             1,468,162 
    Loss from financial liabilities 
    measured at fair value through 
    profit or loss                                                                       -                                               283,881 
     Finance costs                                                               1,427,411                                             1,132,477 
------------------------------------  ----------------------------------------------------  ---------------------------------------------------- 
 Total expenses                                                                115,375,203                                           104,924,141 
 
 Profit before taxation                                                          1,562,413                                             2,213,862 
 Tax expense                                                                       406,261                                               898,200 
------------------------------------  ----------------------------------------------------  ---------------------------------------------------- 
 Profit for the period                                                           1,156,152                                             1,315,662 
 
 Other comprehensive income: 
  Items that will be reclassified 
  subsequently to profit or loss 
  Exchange difference on translating 
  foreign operations                                                           (1,918,120)                                               472,644 
------------------------------------  ----------------------------------------------------  ---------------------------------------------------- 
 Total comprehensive income for 
  the year net of tax                                                            (761,968)                                             1,788,306 
------------------------------------  ----------------------------------------------------  ---------------------------------------------------- 
 
  Profit for the period attributable 
  to: 
  - Owners of the parent                                                         1,018,331                                             1,025,376 
  - Non-controlling interest                                                       137,821                                               290,286 
------------------------------------  ----------------------------------------------------  ---------------------------------------------------- 
                                                                                 1,156,152                                             1,315,662 
------------------------------------  ----------------------------------------------------  ---------------------------------------------------- 
 Total comprehensive income 
 attributable 
 to: 
  - Owners of the parent                                                         (899,789)                                             1,283,838 
  - Non-controlling interest                                                       137,821                                               504,468 
------------------------------------  ----------------------------------------------------  ---------------------------------------------------- 
                                                                                 (761,968)                                             1,788,306 
------------------------------------  ----------------------------------------------------  ---------------------------------------------------- 
 Earnings per share: Basic and 
  diluted                                                                             0.02                                                  0.02 
------------------------------------  ----------------------------------------------------  ---------------------------------------------------- 
 

The annexed notes form an integral part of and should be read in conjunction with these condensed financial statements.

Unaudited condensed consolidated statement of changes in equity

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

 
                           Equity         Exchange                   Retained earnings                      Total attributable to owners of           Non-controlling     Total equity 
                          Capital      translation                                                                               the parent                  interest 
                                           reserve                                         Other equity 
-----------------  --------------  ---------------  ----------------------------------  ---------------  ----------------------------------  ------------------------  --------------- 
 
  Balance as at 1 
   April 2018          12,915,135      (3,175,046)                           9,218,018                -                          18,958,107                 3,265,468       22,223,575 
 Transaction with 
  owners: 
  Buy back of 
  non-controlling 
  interest*                     -                -                    -                       802,605                               802,605               (3,345,817)      (2,543,212) 
  Profit for the 
   period                       -                -                           1,018,331                -                           1,018,331                   137,821        1,156,152 
-----------------  --------------  ---------------  ----------------------------------  ---------------  ----------------------------------  ------------------------  --------------- 
  Other 
   comprehensive 
   income: 
   -Exchange 
   differences on 
   translating 
   foreign 
   operations                   -      (1,918,120)                                   -                -                         (1,918,120)                         -      (1,918,120) 
  Total 
   comprehensive 
   income for the 
   period                       -      (1,918,120)                           1,018,331                -                           (899,789)                   137,821        (761,969) 
-----------------  --------------  ---------------  ----------------------------------  ---------------  ----------------------------------  ------------------------  --------------- 
  Balance as at 
   30 September 
   2018                12,915,135      (5,093,166)                          10,236,349          802,605                          18,860,923                    57,472       18,918,392 
-----------------  --------------  ---------------  ----------------------------------  ---------------  ----------------------------------  ------------------------  --------------- 
  Balance as at 1 
   April 2017          15,740,501      (3,478,417)                           7,303,698                -                          19,565,782                 2,706,557       22,272,339 
  Issue of share 
   capital              1,618,035                                                                                                 1,618,035                                  1,618,035 
  Dividend paid                                                              (712,618)                                            (712,618)                                  (712,618) 
  Profit for the 
   period                       -                -                           1,025,376                                            1,025,376                   290,285        1,315,662 
-----------------  --------------  ---------------  ----------------------------------  ---------------  ----------------------------------  ------------------------  --------------- 
  Other 
   comprehensive 
   income: 
   -Exchange 
   differences on 
   translating 
   foreign 
   operations                   -          258,462                                   -                -                             258,462                   214,182          472,644 
-----------------  --------------  ---------------  ----------------------------------  ---------------  ----------------------------------  ------------------------  --------------- 
 
  Total 
   comprehensive 
   income for the 
   period                       -          258,462                           1,025,376                -                           1,283,838                   504,468        1,788,305 
-----------------  --------------  ---------------  ----------------------------------  ---------------  ----------------------------------  ------------------------  --------------- 
  Balance as at 
   30 September 
   2017                17,358,536      (3,219,955)                           7,616,456                -                          21,755,037                 3,211,024       24,966,062 
-----------------  --------------  ---------------  ----------------------------------  ---------------  ----------------------------------  ------------------------  --------------- 
 

*The Group on 28 June 2018, through its wholly-owned subsidiary, Tenon Facility Management Singapore Pte. Limited ("Tenon Singapore"), acquired the remaining 49% of the issued and paid-up capital of its Singapore-based subsidiary Frontline Security PTE LTD ("Frontline Security") from minority shareholder, for a consideration of SGD 3.5 million.

Unaudited condensed consolidated statements of cash flows

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

 
                                                             Six months             Six months 
                                                                  ended                  ended 
                                                           30 September           30 September 
                                                                   2018                   2017 
                                                            (Unaudited)            (Unaudited) 
------------------------------------------------  ---------------------  --------------------- 
 (A) Cash flow from operating activities 
 Profit before taxation                                       1,562,413              2,213,862 
 Adjustments for: 
 Depreciation and amortization                                1,485,309              1,468,162 
 Finance cost                                                 1,427,411              1,132,477 
 Finance income                                               (125,431)              (216,518) 
 Loss on sale of property plant and equipment                    16,249                      - 
 Loss from financial liabilities measured 
  at fair value through profit or loss                                -                283,881 
 Impairment of trade receivables                                379,068                193,102 
 Other adjustments                                                    -                  4,497 
                                                  ---------------------  --------------------- 
 Operating profit before working capital 
  changes (Current and non- current)                          4,745,019              5,079,463 
 Increase in inventories                                       (36,474)              (165,460) 
 Increase in trade and other receivables                    (9,250,587)            (5,761,040) 
 Increase in trade and other payables                         5,701,620              3,950,851 
------------------------------------------------  ---------------------  --------------------- 
 Cash generated from operations                               1,159,578              3,103,814 
 Income tax paid                                            (1,070,465)            (1,122,530) 
 
   Net cash generated from operating activities                  89,113              1,981,284 
------------------------------------------------  ---------------------  --------------------- 
 
 (B) Cash flow from investing activities 
 Acquisition of plant, property and equipment                 (753,998)              (633,055) 
 Purchase consideration paid on business 
  acquisition                                                         -            (4,979,899) 
 Purchase consideration for acquisition of 
  NCI                                                       (2,543,212)                      - 
 Acquisition of other intangible assets                          26,074                      - 
 Proceeds from sale of plant, property and 
  equipment                                                      86,946                 25,112 
 Interest received                                              366,440                521,557 
------------------------------------------------  ---------------------  --------------------- 
 
   Net cash used in investing activities                    (2,817,750)            (5,066,245) 
------------------------------------------------  ---------------------  --------------------- 
 
 (C) Cash flows from financing activities 
 Dividend paid                                                        -              (712,618) 
  Withdrawal of fixed deposit                                   560,820                      - 
 Repayment of finance lease obligation                           18,651              (520,864) 
 Proceeds from long term borrowings                              80,000                      - 
 Repayment of long term borrowings                            (554,748) 
 Movement in short term borrowings (net)                      2,654,604              3,669,590 
 Interest expenses                                          (1,710,888)            (1,662,228) 
 Net cash generated from financing activities                 1,048,439                773,880 
------------------------------------------------  ---------------------  --------------------- 
 
 Net increase/ (decrease) in cash and cash 
  equivalents                                               (1,680,198)            (2,311,080) 
 Cash and cash equivalents at the beginning 
  of the period                                               4,192,791              3,539,846 
 Cash on account of business acquisition                              -              1,914,977 
 Effect of change in exchange rate on cash 
  and cash equivalents                                           94,248                 15,849 
------------------------------------------------  ---------------------  --------------------- 
 Cash and cash equivalents at the end of 
  the period                                                  2,606,841              3,159,591 
------------------------------------------------  ---------------------  --------------------- 
 

Notes to unaudited condensed consolidated interim financial statements

1. Introduction

Mortice Limited ('the Company' or 'Mortice') was incorporated on 9 January 2008 as a public limited Company in the Republic of Singapore. The Company's registered office is situated at 36 Robinson Road, #17-01 City House, Singapore 068877.

The Company was listed on the Alternative Investment Market (AIM) of the London Stock Exchange on 15 May 2008. The Company together with its subsidiaries (hereinafter, together referred to as 'the Group') is engaged in providing services such as guarding services, facilities management services, mechanical and engineering maintenance services, installation of safety equipment and sale of such equipment. The Group's operations are spread across India, UK and Singapore. The various entities comprising the Group have been defined below.

 
 Name of subsidiaries                              Country of           Effective 
                                                  incorporation     group shareholding 
                                                                           (%) 
 Held by Mortice Limited 
 Tenon Facility Management India Private 
  Limited                                             India                      99.48 
 Tenon Facility Management Singapore Pte 
  Limited                                           Singapore                      100 
 
 Held by Tenon Facility Management India 
  Private Limited 
 Tenon Facility Management UK Limited            United Kingdom                    100 
 Tenon Support Services Private Limited 
  ('Tenon Support')                                   India                        100 
 Tenon Project Services Private Limited 
  ('Tenon Project')                                   India                        100 
 Roto Power Projects Private Limited ('Roto')         India                      99.95 
 Soteria Command Centre Private Limited 
  ('Soteria')                                         India                        100 
 
 Held by Tenon Facility Management UK Limited 
 Office and General Group Limited (O&G)          United Kingdom                    100 
 Elite Cleaning & Environmental services 
  Limited                                        United Kingdom                   100 
 
 Held by Office and General Group Limited 
  (O&G) 
 Tenon Facility Management Limited               United Kingdom                    100 
 
 Held by Tenon Facility Management Singapore 
  Pte Limited 
 Frontline Securities Pte Limited*                  Singapore                      100 
 

*increase in group shareholding in Frontline Securities Pte Limited during the period from 51% to 100%.

These unaudited condensed consolidated financial statements were approved by the Board on 26(th) Dec,2018.

The immediate and ultimate holding company is Mancom Singapore PTE ltd, a company incorporated in Singapore. (In the previous year Mancom Holding Limited was the Ultimate holding company)

2. Basis of preparation

These condensed consolidated interim financial statements for the six months period ended 30 September 2018 have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union (EU), on a going concern basis. They do not include all of the information required in annual financial statements in accordance with IFRS, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2018.

Notes to unaudited condensed consolidated interim financial statements (contd.)

The functional currency of the entities within the Group (other than the subsidiaries in Singapore & United Kingdom) is Indian Rupees ('INR'). The functional currency of subsidiary in Singapore is SGD & in United Kingdom is GBP. The Company has a functional currency of United States Dollars ('US$'). The group's management has chosen to present the consolidated financial statement in US$, the functional currency of the Company.

All inter-company transactions and balances are eliminated on consolidation and the unaudited condensed consolidated interim financial statements reflect external transactions only. The accounting periods of the subsidiaries are coterminous with that of the Company.

3. Significant accounting policies

The interim financial statements have been prepared in accordance with the accounting policies adopted in the Group's most recent annual financial statements for the year ended 31 March 2018.

4. Estimates

When preparing the interim financial statements, management undertakes a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgments, estimates and assumptions made by management, and will seldom equal the estimated results.

The judgments, estimates and assumptions applied in the interim financial statements, including the key sources of estimation uncertainty were the same as those applied in the Group's most recent annual financial statements for the year ended 31 March 2018.

5. Segment reporting

The Group has reported segment results based on internal management reporting information that is regularly reviewed by the Group's Chief Executive Officer and Chairman. Chief Executive Officer and Chairman have concluded that the operating segment disclosure should be based on service offered by Group.

The reportable segments identified by the group are: guarding services and facility management services.

The revenue and profit generated by each of Group's business segments are summarized as follows:

 
 1 April 2018 to 30 September 2018 
------------------------------------------------------------------------------- 
                             Guarding     Facility      Others      Total 
                                           Management 
--------------------------  -----------  ------------  ----------  ------------ 
 Revenue 
 From external customers     63,876,862    52,522,713     282,441   116,682,016 
 Segment operating profit     1,940,302     1,065,458    (26,947)     2,978,813 
 Total Segment assets        34,412,057    19,587,808   1,466,426    55,466,291 
 Segment liabilities         27,476,253    25,083,809   1,357,174    53,917,236 
--------------------------  -----------  ------------  ----------  ------------ 
 
 
 1 April 2017 to 30 September 2017 
------------------------------------------------------------------------------- 
                             Guarding     Facility      Others      Total 
                                           Management 
--------------------------  -----------  ------------  ----------  ------------ 
 Revenue 
 From external customers     55,980,052    50,092,089     243,631   106,315,772 
 Segment operating profit     2,156,117       431,030   (107,950)     2,479,197 
 Total Segment assets        35,072,909    26,149,516     857,527    62,079,952 
 Segment liabilities         27,585,422    22,999,939   2,103,240    52,688,601 
--------------------------  -----------  ------------  ----------  ------------ 
 

The totals presented for the Group's operating segments reconciliation to the Group's key financial figures presented in its condensed consolidated financial statements are as follows:

                                                                                                     September 2018           September 2017 
 
 Segment assets                   55,466,291   62,079,952 
 Reconciling items: 
 Other assets unallocated         31,407,232   23,848,045 
-------------------------------  -----------  ----------- 
 Total assets                     86,873,523   85,927,997 
-------------------------------  -----------  ----------- 
 
 Segment liabilities              53,917,236   52,688,601 
 Reconciling items: 
 Other liabilities unallocated    14,037,892    8,273,333 
-------------------------------  -----------  ----------- 
 Total liabilities                67,955,128   60,961,934 
-------------------------------  -----------  ----------- 
 
 
                                             Six months ended                Six months ended 
                                                30 September                   30 September 
                                                    2018                           2017 
------------------------------------  -------------------------------  ---------------------------- 
Segment operating profit before tax                         2,978,814                     2,479,197 
Reconciling items: 
Other income not allocated                                    255,600                       538,350 
Other expense not allocated                               (1,672,001)                     (803,684) 
Profit before tax                                           1,562,413                     2,213,862 
------------------------------------  -------------------------------  ---------------------------- 
 

6. Property, plant and equipment - The acquisitions of property, plant and equipment, for the six months ended 30 September 2018 are US$ 1,235,066 (six months ended 30 September 2017: US$ 633,055 and for the twelve months ended 31 March 2018 are US$ 1,454,045 excluding property, plant and equipment acquired under business combination).

7. Earnings per share

Both basic and diluted earnings per share have been calculated using the profit or loss attributable to shareholders of Mortice Limited as the numerator. Calculation of basic and diluted profit per share is as follows:

 
                                                Six months     Six months 
                                                   ended        ended 30 September 
                                                30 September    2017 
                                                    2018 
--------------------------------------------  --------------  -------------------- 
 
 Earnings attributable to equity 
  holders (US$)                                    1,018,331             1,025,376 
 Weighted average number 
  of ordinary shares outstanding 
  for basic & diluted earnings 
  per share                                       53,417,440            55,060,401 
--------------------------------------------  --------------  -------------------- 
 Basic and diluted earnings per share 
  (US$)                                                 0.02                    0.02 
--------------------------------------------  --------------  ---------------------- 
 -*rounded off to two decimal places. 
 
 

8. Related party transactions

   A.   Related party relationship 

Disclosure of Related parties and relationship between the parties:

 
 Ultimate Holding Company                     Mancom Singapore PTE Limited 
 
 Entities on which KMP exercise significant   Micro Azure Computers Private 
  influence:                                   Limited 
 (where transaction occurred) 
 
 
 Key Management Personnel (KMPs)              Manjit Rajain 
                                              Rajan Oberoi 
 
 
 Relative of Key Management Personnel         Angad Rajain, Anuj Rajain 
 

Significant related party transactions, other than those disclosed elsewhere in the financial statements, are as follows

Transaction with key management: September

 
 Particulars                      2018      2017 
                                   US$       US$ 
 
 Remuneration 
  Short-term benefits          415,243   392,708 
 Post - employment benefits     11,579    21,040 
============================  ========  ======== 
 

The outstanding balances payable to related parties under the category of key management as at 30 September 2018 and 30 September 2017 are US$ 176,510 and US$ 5,508 respectively.

 
                                                      2018              2017 
 The Group                                             US$               US$ 
 Key management personnel and their relatives 
 Office rental paid to key management personnel    153,689           132,101 
 Deposits given to key management personnel        267,431            64,264 
 Office rental paid to Relatives of Managerial      40,910                 - 
  Personnel 
 
 Entities over which key management are able 
  to exercise control: 
 Deposits given to related party                   282,961            18,262 
 Operating expenses paid on behalf of related            -                 - 
  party 
 Recovery of advances from related party           128,259             5,709 
 Office rental paid to related party               149,759            18,641 
 Commission paid to related party                        -            17,865 
 
   9   Financial instruments 

(Financials assets and liabilities measured at amortised cost)

Fair values

The carrying amount of financial assets and liabilities with a maturity of less than one year is assumed to approximate their fair values.

However, the Group and the Company do not anticipate that the carrying amounts recorded at financial position date would be significantly different from the values that would eventually be received or settled.

The carrying amounts of assets and liabilities presented in the statement of financial position relate to the following categories of assets and liabilities:

 
                                                        September 
                                                       2018         2017 
                                                        US$          US$ 
 Non-current assets 
 Loans and receivables 
 Restricted cash                                    867,420    1,464,711 
 
 Current assets 
 Loans and receivables 
 Trade and other receivables                     52,953,120   37,802,309 
 Cash and cash equivalents                        2,606,841    3,159,591 
----------------------------------------------  -----------  ----------- 
 Total financial assets                          56,427,380   42,426,611 
==============================================  ===========  =========== 
 
 Non-current Liabilities 
 Finance lease obligations, excluding 
  current portion                                   518,131      348,839 
 Long-term borrowings, excluding current 
  portion                                         5,906,906    4,074,060 
 
 Current liabilities 
 Trade payables and other payables               29,356,126   28,720,236 
 Bank overdraft                                  10,210,033    5,766,607 
 Current portion of finance lease obligations       679,563      508,729 
 Current portion of long term borrowing           6,064,893    9,612,540 
----------------------------------------------  -----------  ----------- 
 Total financial liabilities                     52,735,652   49,031,011 
==============================================  ===========  =========== 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR UNRBRWRAUUAA

(END) Dow Jones Newswires

December 27, 2018 02:01 ET (07:01 GMT)

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