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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Ishaan | LSE:ISH | London | Ordinary Share | IM00B1FW3316 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 49.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMISH
RNS Number : 1985T
Ishaan Real Estate PLC
11 December 2012
Ishaan Real Estate plc
Interim Report
For the six months ended 30 September 2012
Overview
The Directors of Ishaan Real Estate plc ("Ishaan") announce the Company's unaudited results for the six months ended 30 September 2012.
Overview of the six months ended 30 September 2012
Net Asset Value 30 Sep 31 Mar 12 Change 12 ------------------------------------- ------ --------- ------ Adjusted NAV per share (pence) (1) (2) 76.9 80.9 -5.0% ------------------------------------- ------ --------- ------ Reported NAV per share (pence) (1) (2) 69.3 69.0 0.4% ------------------------------------- ------ --------- ------ -- Portfolio value GBP613 million, up c.1.4 per cent. (31 March 2012: GBP604 million).
-- Underlying portfolio value down 3.9 per cent. (up 0.7 per cent. in Rupee terms) after adjusting for construction expenditure capitalised during the period and exchange translation losses (which translation losses contributed 4.6 per cent.). These items had a similar impact on adjusted net asset value per share over the period.
-- Net additions of c.186,000 sq. ft. made to the aggregate area let or with terms agreed since 21 June 2012.
-- Equivalent annualised rental income of c.GBP37 million being received on c.7.1 million sq. ft. of the portfolio at 30 September 2012, with the rent being used primarily to pay interest and repay principal on borrowings.
-- c.INR 38.4 billion (c.GBP448 million) financing secured by Indian SPVs including debt facilities of c.INR 31.7 billion (c.GBP370 million) to fund the c.INR 39.5 billion (c.GBP461 million) cost of areas constructed or under construction.
-- Following April 2012 policy rates reduction by the Reserve Bank of India, interest rates have reduced by a further c.25-50bps. Current average borrowing cost of Indian SPVs is c.12-13 per cent.
-- In line with previous disclosure, Andhra Pradesh Industrial Infrastructure Corporation Ltd's (APIIC's) stake in the Intime and Sundew SPVs has been increased to 11 per cent. resulting in the dilution of Ishaan's equity interest in Intime and Sundew from 40 per cent. to 38.98 per cent.
-- Inorbit Mall in Bangalore was launched in August 2012 with c.55 per cent. of the retail area currently trading.
-- Cash deposits of GBP8.5 million at 30 September 2012 (31 March 2012: GBP10.1 million).
Ian Henderson, Chairman of Ishaan, commented:
"The slow pace of domestic and global economic growth resulted in letting activity at Ishaan's commercial projects remaining subdued during the first six months. In contrast, our construction programme has continued to progress well, with c.8.9 million sq. ft. of commercial and retail space being now complete. c.7.1 million sq. ft. of this space is yielding rental income and we expect an additional c.0.5 million sq. ft. to yield rental income by March 2013.
Portfolio value in Rupee terms remained stable amidst the difficult market conditions, although the value in GBP terms decreased on account of negative movement in the exchange rate.
As previously disclosed, the Board is focused on the disposal of the assets within the Company's portfolio and returning cash to shareholders. In the second half of 2012, the Board appointed a leading global commercial real estate firm to comment on valuation of the Company's assets and to approach potential third party purchasers (Indian and international) of the Company's assets to determine interest both on a whole portfolio basis and in respect of individual assets.
The Board has received preliminary feedback from a number of potential purchasers, which has highlighted the following:
-- While the assets in the portfolio were generally perceived to be of high quality, transaction execution remains challenging in the current environment.
-- The potential exists for a portfolio exit to occur, providing a more immediate cash realisation for shareholders. However, as of today, such an exit is likely to take place at a significant discount to Adjusted Net Asset Value per share.
-- An asset by asset divestment strategy is most likely to maximise proceeds for shareholders. However, the completion of a piecemeal disposal process can be expected to take place over an extended time period.
-- The highest levels of interest shown were in the income generating assets in the portfolio. Limited interest was shown in the longer term development projects at Pocharam and Juinagar.
Initial steps down the disposal route have been made and the Company will update shareholders as and when there is further information to make available. The Board remains committed to pursuing all options to realise cash for shareholders and will look to advance the disposal process in an orderly manner going forward".
(1) Reported NAV per share is not considered the best method of evaluating performance as it excludes valuation surpluses attributable to development properties intended for sale and includes the impact of deferred tax liability on valuation surpluses. Adjusted NAV per share at 30 September 2012 and at 31 March 2012 includes all investments at current valuations in proportion to the Group's shareholdings and a provision for a potential income tax liability in respect of the Vivarea project, but excludes the impact of the deferred tax provision arising on valuation surpluses, on the net assets of the Company and is considered by the Board to be a more appropriate method of evaluating the performance of the Company than Reported NAV per share.
(2) Exchange rate used for the purpose of this statement is 1GBP = 85.71 INR, the Reserve Bank of India reference rate at 28 September 2012. Exchange rate at 30 March 2012 was 1GBP = 81.8 INR and at 30 September 2011 was 1GBP = 76.52 INR.
11 December 2012
Contacts:
College Hill Deutsche Bank AG London (NOMAD) Mike Davies Ben Lawrence Direct : +44 207 457 2020 Tel: +44 20 7545 8000 Email: mike.davies@collegehill.com Email: ben.lawrence@db.com
Chairman's Statement
The profit before tax for the period of GBP3.3 million (2011: loss before tax of GBP3.5 million), reflects the share of post-tax profits of associates and write back of investments in associates partially offset by the cost of investment advisory fees paid / payable to the investment adviser.
Valuation
The underlying valuation of 100 per cent. interests in the portfolio properties at 30 September 2012, as valued by Cushman & Wakefield (India) Pvt. Limited ('Cushman & Wakefield') at 30 September 2012 increased by 6.2 per cent. to INR 52.5 billion (31 March 2012: INR 49.4 billion). Adjusting for construction expenditure capitalised during the period (which broadly reflects physical progress in construction) the portfolio's value increased by 0.7 per cent.
After conversion to pound Sterling, the 100 per cent. interests in portfolio properties were valued at GBP613 million at 30 September 2012. Ishaan's interest was valued at GBP243 million, with an increase of 0.4 per cent. compared to GBP242 million at 31 March 2012, (a decrease of 3.9 per cent. after adjusting for construction expenditure capitalised during the period). This decrease in pound Sterling valuation in part reflects a 4.6 per cent. decrease in value since 31 March 2012 on account of exchange translation loss (the exchange rate moved from INR 81.8 on 30 March 2012 to INR 85.71 on 28 September 2012).
Net Asset Value
Reported net asset value per share was 69.3p at 30 September 2012 (31 March 2012: 69.0p). Reported net asset value per share is calculated based on the Group's reported net assets at period end divided by the number of shares in issue and excludes valuation surpluses attributable to development properties intended for sale.
Adjusted net asset value per share was 76.9p at 30 September 2012 down 5.0 per cent compared with 80.9p at 31 March 2012. The decline in adjusted net asset value per share reflects the exchange translation loss and reduction in cash deposits with the Company.
The Board considers Adjusted NAV per share to be a more appropriate method of evaluating the performance of the Company than Reported NAV per share, as it includes all investments at current valuations in proportion to the Group's shareholdings in each project as well as a provision for a potential income tax liability on the Vivarea project while excluding deferred tax provisions arising on valuation surpluses for all investment properties.
The Board considers it appropriate to exclude deferred tax provisions arising on valuation surpluses for all investment properties in determining Adjusted NAV per share as the Group's exit from its investment in the Indian SPVs holding the Company's projects is not expected to involve the sale of development properties, which should trigger the crystallisation of the deferred tax provision.
In March 2012 amendments were made to the Indian Income Tax law under which gains on divestment outside India by overseas sellers of shares in Indian companies would be liable to payment of Income Tax in India on such gains. Further, acquirers of such shares should withhold Indian Income Tax from the consideration payable to such overseas sellers. Given the uncertainty of the method by which Ishaan will divest its interest in the Indian SPVs, the values to be realized, and the quantum, if any, of resulting taxable gains, the Board considers it to be premature to include any provision in respect of such Income Tax, in determining the Adjusted NAV per share at this time.
Project Progress
Construction has been completed on an additional c.1.3 million sq. ft., bringing the total area constructed to c.8.9 million sq. ft. An additional area of c.0.7 million sq. ft. has been brought under construction at Mindspace Madhapur, Hyderabad (SEZ). Also, since the period end, work has commenced on the commercial space at Inorbit, Pune. Subsequently the total area constructed and under construction in the portfolio now stands at c.11.7 million sq. ft. excluding hotel and residential development and c.12.7 million sq. ft. including hotel and residential development.
Details of the area constructed or under construction:
Area sq. ft. Project Area constructed Area under Area constructed Area for Total planned (a) construction and under future development development (b) construction (d) (e = c + (c = a d) + b) Mindspace, Airoli, Navi Mumbai 3,191,000 1,038,000 4,229,000 356,000 4,585,000 Mindspace, Pocharam 380,000 - 380,000 1,690,000 2,070,000 Mindspace, Madhapur (SEZ) 2,017,000 1,463,000 3,480,000 1,336,000 4,816,000 Mindspace, Madhapur (non-SEZ) 1,714,000 - 1,714,000 - 1,714,000 Inorbit, Hyderabad 780,000 - 780,000 322,000 1,102,000 Inorbit, Pune * 546,000 98,000 644,000 - 644,000 Commerzone, Bangalore ** 271,000 175,000 446,000 65,000 511,000 Mindspace, Juinagar, Navi Mumbai - - - 2,250,000 2,250,000 Sub-Total 8,899,000 2,774,000 11,673,000 6,019,000 17,692,000 Commerzone, Bangalore *** - 360,000 360,000 - 360,000 Vivarea, Mumbai - 620,000 620,000 240,000 860,000 Total 8,899,000 3,754,000 12,653,000 6,259,000 18,912,000
Areas reported above are chargeable / saleable areas.
Minor revision has been carried out to the area constructed or under construction at some of the above projects to reflect the actual developed area of the completed buildings or buildings nearing completion.
* Area under construction comprises commercial space.
**Area under construction comprises commercial space and future development comprises multiplex space.
*** Area under construction comprises hotel development.
Since the preliminary results announcement on 21 June 2012, net addition of c.186,000 sq. ft. (including c.38,000 sq. ft. previously under option) have been made to the area let or under terms agreed across the following projects in the portfolio:
-- c.108,000 sq. ft. at Mindspace, Airoli, Navi Mumbai -- c.42,000 sq. ft. at Mindspace, Madhapur, Hyderabad SEZ -- c.30,000 sq. ft. at Mindspace, Madhapur, Hyderabad Non- SEZ -- c.8,000 sq. ft. at Inorbit Malls, Hyderabad, Pune and Bangalore -- c.2,000 sq. ft. reduction in lettings at Mindspace, Pocharam, Hyderabad
With this, the total area let or under terms agreed in the portfolio has increased to c.8.9 million sq. ft., representing c.77 per cent. of the lettable area constructed or under construction and c.51 per cent. of the aggregate lettable area of the portfolio.
Options over c.34,000 sq. ft. have been given up by the tenants. The aggregate area under option now stands at c.702,000 sq. ft. which is in addition to the area let or terms agreed.
At 30 September 2012, revenue is being received on c.7.1 million sq. ft. of the portfolio. Rent of c.GBP17 million has been generated from these lettings in the six months ended 30 September 2012, being used primarily to repay principal and interest on borrowings. Annualised rent from this area is estimated at c.GBP37 million, and a further c.0.5 million sq. ft. is expected to become income producing by March 2013.
Updated levels of letting activity in the Company's portfolio are as follows:
Area sq. ft. Project Area let Terms Aggregate Lettable % of area Area yielding (a) agreed area area constructed constructed rent as (b) (Area let or under or under at 30 Sep & Terms construction construction 12 Agreed) (c)=(a+b) (d) (c)/(d) Mindspace, Airoli, Navi Mumbai 2,535,000 893,000 3,428,000 4,229,000 81% 2,507,000 Mindspace, Pocharam 160,000 - 160,000 380,000 42% 160,000 Mindspace, Madhapur (SEZ) 1,707,000 590,000 2,297,000 3,480,000 66% 1,447,000 Mindspace, Madhapur (non-SEZ) 1,691,000 - 1,691,000 1,714,000 99% 1,672,000 Inorbit, Hyderabad 706,000 - 706,000 780,000 *91% 687,000 Inorbit, Pune 493,000 - 493,000 **644,000 *90% 483,000 Commerzone, Bangalore 159,000 5,000 164,000 **446,000 *61% 150,000 Total 7,451,000 1,488,000 8,939,000 11,673,000 77% 7,106,000
* Figures are for the retail space at the respective projects; ** Includes commercial space at the project
In addition to the above area let or under terms agreed, c.702,000 sq. ft. is under option / ROFRs. These options / ROFRs are due to be exercised over the next 1-2 years.
Project Area under option / ROFR (sq. ft.) ------------------------- --------------- Mindspace, Airoli, Navi Mumbai 247,000 ------------------------- --------------- Mindspace, Pocharam 216,000 ------------------------- --------------- Mindspace, Madhapur (SEZ) 239,000 ------------------------- --------------- TOTAL 702,000 ------------------------- ---------------
Since the preliminary results announcement on 21 June 2012, an additional c.16,000 sq. ft. of residential space has been pre-sold at Vivarea, Mumbai. As a result, a total of c.561,000 sq. ft. has been pre-sold at this project at an average price higher than that estimated at the time of IPO. The area pre-sold represents c.90 per cent. of the saleable residential area currently under construction. Estimated completion of the fourth tower at this project has been extended by a year to Q3 2016 on account of a delay in receipt of approvals, some of which are still outstanding.
Inorbit Mall at Whitefield, Bangalore was launched in August 2012 with c.55 per cent. of the mall area currently trading. Though the demand supply situation in this micro market remains challenging, the Company is hopeful of achieving additional lettings by the end of the year.
Letting activity at the commercial projects moderated during the period owing to the slowdown in expansion plans of many IT/ITES companies in view of sluggish economic conditions in India. Rentals remained stable or increased marginally at some of the commercial projects in the portfolio.
During the period, the decision was taken to merge certain of the Mauritian subsidiaries owned by I Holding Company (Mauritius) Ltd. In consequence, it is expected that changes will also need to be made to certain aspects of the Investment Advisory Agreement to reflect this simplified Group structure and to ensure consistency of the Investment Advisory Agreement with the terms as set out at the time of IPO.
Final resolution of dispute between K Raheja Corp and APIIC
As previously announced on 20 September 2011, with a view to maintaining a harmonious relationship with APIIC and the Government of Andhra Pradesh and in the interests of the projects involved, K Raheja IT Park Pvt Ltd (the 'JV Company'), the entity set-up by K Raheja Corp to develop IT Parks in Hyderabad, had offered to restore APIIC's stake in the JV Company to 11 per cent. for nominal consideration. This also required Intime Properties Private Limited ('Intime) and Sundew Properties Private Limited ('Sundew') (investee companies of Ishaan), which were demerged from the JV Company in March 2007, to offer to APIIC restoration of APIIC's stake in Intime and Sundew to 11 per cent. The restoration proposal was unanimously passed by the boards of Intime and Sundew with the participation of the APIIC nominee director.
Consequently, restoration of APIIC's stake in Intime and Sundew has been effected through a transfer of shares owned in Intime and Sundew by K Raheja Corp Group and an issue of new shares to APIIC by Intime and Sundew. The issue of new shares and transfer of shares have resulted in the dilution of Ishaan's equity interest in Intime and Sundew from 40 per cent. to 38.98 per cent., as previously disclosed. The impact of this dilution on Ishaan's Net Asset Value per share at 30 September 2012 is c.0.5p or 0.7% of Adjusted NAV per share of 76.9p.
Additionally, in 2011, a private action was brought by an advocate in the Anti-Corruption Bureau (ACB) Court at Hyderabad alleging corruption by Mr. Neel Raheja and an employee of K Raheja Corp in connection with the dilution of APIIC's shareholding in the JV Company at the time of the equity issue by the JV Company in 2005. The ACB enquiry is now underway. Mr. Raheja, on advice, maintains that the allegations are without foundation and there was no corruption on his part or on the part of the K Raheja Corp employee in connection with the 2005 equity issue by the JV Company.
Project Update:
Mindspace, Airoli, Navi Mumbai
Since the preliminary results announcement on 21 June 2012, net additions of c.108,000 sq. ft. have been made to area let or terms agreed. As a result, c.3.4 million sq. ft., representing c.81 per cent of the area constructed or currently under construction, has been let or has had terms agreed. A further c.247,000 sq. ft. is under option/ROFR at this project. As at 30 September 2012, rent has commenced from c.2,507,000 sq. ft. of space.
Eight buildings, with an aggregate area of c.3.2 million sq. ft., are currently operational. Another three buildings with an aggregate area of c.1.0 million sq. ft. are under construction with finishes in progress at one of the three buildings and super structure work in progress on the other two buildings.
Mindspace, Pocharam, Hyderabad
One building at this project is completed. Super structure work is partly complete on a second building and further construction is currently on hold. The area let at this project stands at c. 160,000 sq. ft. Another 216,000 sq. ft. is under options.
Mindspace, Madhapur, Hyderabad (SEZ Development)
Since the preliminary results announcement on 21 June 2012, net addition of c.42,000 sq. ft. has been made to area let or with terms agreed. As a result, the aggregate area let or with terms agreed is now c.2.3 million sq. ft. representing c.66 per cent. of the area constructed or currently under construction at this project. As at 30 September 2012, rent has commenced from an area of c. 1,447,000sq. ft.
Options over c.34,000 sq. ft. have been given up by the prospective tenants since 21 June 2012. The total area under options at this project is now c.239,000 sq. ft.
Three buildings at the project are operational, while super structure work is on-going on one building and foundation work is in progress on another building. Delayed receipt of approvals has caused extension of the estimated project completion by a year from Q3 2015 to Q3 2016.
Mindspace, Madhapur, Hyderabad (Non-SEZ Development)
All three buildings at this project are completed and operational. Aggregate area let is c.1.69 million sq. ft., representing c.99 per cent of the project area. As at 30 September 2012, rent has commenced from an area of c.1.67 million sq. ft.
Inorbit, Madhapur, Hyderabad
Since its launch in October 2009 the mall has continued to trade well. c.91 per cent of the retail space is currently let and c.88 per cent of the space is currently trading. As at 30 September 2012, rent had commenced on c.687,000 sq. ft. The planned IT development at this project is currently on hold.
Inorbit, Pune
Aggregate area let or terms agreed at this project stands at c. 493,000 sq. ft., representing c.90 per cent. of the retail space. c.88 per cent of the retail area is currently trading. As on 30 September 2012, rent had commenced on c. 483,000 sq. ft. Construction has commenced on the planned IT development of c.98,000 sq. ft.
Vivarea, Mumbai
Interiors and finishes work is in progress on the three towers and is due to be completed by March 2013. Estimated completion of the fourth tower (which we are obligated to deliver) has been delayed by a year to Q3 2016 on account of a delay in receipt of planning approvals, some of which are still awaited. c.561,000 sq. ft. has been pre-sold at this project, representing c.90 per cent of the saleable area currently under construction.
Commerzone Bangalore
The mall was launched in August 2012 and the aggregate retail area let or terms agreed at this project stands at c.164,000 sq. ft., representing c.61 per cent of the completed retail space.
Construction cost of the hotel has increased by INR 360 million due to delay in the hotel completion, inflation, rupee depreciation and enhancement of certain amenities and safety measures. Interior and finishes work is in progress at the hotel site and the hotel is planned to be operational by Q1 2013.
Mindspace, Juinagar, Navi Mumbai
The project is a c.2.25 million sq. ft. SEZ development. Foundation work has been completed on three buildings. Further construction is on hold. Construction will commence when the company is confident of potential demand for the development.
Cost & Financing
Currently, an area of c.12.0 million sq. ft. (excluding Vivarea) is constructed or under construction. The Indian SPVs remain well funded to meet the development requirements of this area. Against the revised estimated cost of c.INR 39.5 billion (c.GBP461 million), which includes the increase in cost at Commerzone, Whitefield Bangalore, the Indian SPVs have secured funding of c.INR 38.4 billion (c.GBP448 million) comprising:
-- shareholders' equity of c.INR 4.2 billion (c.GBP49 million), -- debt facilities of c.INR 31.7 billion (c.GBP370 million) and
-- security deposits received/receivable on areas let or terms agreed of c.INR 2.5 billion (c.GBP29 million).
Of the above estimated project costs for the area currently under development, c.INR 32.6 billion (c.GBP380 million) has been incurred up-to 30 September 2012. The Indian SPVs had drawndown debt of c.INR 25.7 billion (c.GBP299 million) at 30 September 2012, with unutilised facilities of c.INR 6.0 billion (c.GBP71 million). In addition, c.90 per cent. of the saleable residential space currently under construction at Vivarea is pre-sold, which will fund the cost of construction of this project.
The debt facility of c.INR 31.7 billion (c.GBP370 million) includes debt of c.INR 23.4 billion (c.GBP273 million) in the form of long term amortizing loans, with an average maturity of about 9.5 years. The balance debt of c.INR 8.3 billion (c.GBP97 million) is other construction debt, with an average maturity of about 3.5 years.
Debt Maturity Profile INR GBP mn bn ========================================= ====== ====== Long term amortizing loans 23.4 273 ========================================= ====== ====== Other Construction debt (Nil repayable before March 2013) 8.3 97 ========================================= ====== ====== TOTAL 31.7 370 ========================================= ====== ======
Having largely secured funding for the area currently under development, the Company is confident of meeting its future development requirements through further debt financing.
Construction debt and long term amortising loans have largely been obtained from domestic and foreign banks. Average tenure of construction debt is generally around 3-4 years with refinancing on construction completion to Lease Rent Discounting (LRD) loans with tenure around 9-10 years. The current interest rates on the funding secured by the Indian SPVs are c.12-13 per cent. p.a. Aggregate bank debt drawn to portfolio value is c.49 per cent.
Dividend
In accordance with the dividend policy set out in the IPO admission document, which stated that it was not anticipated that dividends would be paid in the foreseeable future, as the projects remain in a highly capital intensive stage, the Board is not declaring a dividend for the six months ended 30 September 2012. The Board will consider payment of dividends when it becomes commercially prudent to do so.
Outlook
Economic activity in India remains sluggish with the Index of Industrial Production (IIP) in India for September 2012 reducing by 0.4 per cent. year on year. Inflation for October 2012 remained high at 7.45 per cent. Recently, the Government of India announced a series of measures to revive long term economic growth and reduce fiscal deficit. These included opening up of the retail sector for Foreign Direct Investment (FDI) by allowing up to 51 per cent. FDI in multi brand retailing and 100 per cent. FDI in single brand retailing, allowing FDI in the aviation business, a divestment plan for Public Sector Undertakings and an increase in the price of subsidized fuel amongst other measures. Growth and inflationary pressures are however expected to continue in the near term.
In order to manage liquidity and support growth, the Reserve Bank of India (RBI) in its monetary policy review in September 2012 and again in October 2012 reduced Cash Reserve Ratio by 25 bps each time to 4.25 per cent., injecting c.INR 340 billion of liquidity into the Indian financial system. However, with inflation continually above the RBI's target level, the RBI kept the policy rates i.e. repo and reverse repo rates unchanged at 8 per cent. and 7 per cent. respectively.
Demand for commercial space remained subdued due to the slowdown in economic activity both globally and domestically. Improvement in demand for commercial space will be driven by the recovery of domestic and international markets. Residential volumes in Mumbai were muted on the back of high property prices and weakening affordability. While demand for high quality retail real estate was stable, increased costs and slowdown in consumption have put pressure on the rentals that retailers are willing to pay. Rentals are expected to remain under pressure in the near term.
Realisation of Cash
As previously disclosed, the Board is focused on the disposal of the assets within the Company's portfolio and returning cash to shareholders. In the second half of 2012, the Board appointed a leading global commercial real estate firm to comment on valuation of the Company's assets and to approach potential third party purchasers (Indian and international) of the Company's assets to determine interest both on a whole portfolio basis and in respect of individual assets.
The Board has received preliminary feedback from a number of potential purchasers, which has highlighted the following:
-- While the assets in the portfolio were generally perceived to be of high quality, transaction execution remains challenging in the current environment.
-- The potential exists for a portfolio exit to occur, providing a more immediate cash realisation for shareholders. However, as of today, such an exit is likely to take place at a significant discount to Adjusted Net Asset Value per share.
-- An asset by asset divestment strategy is most likely to maximise proceeds for shareholders. However, the completion of a piecemeal disposal process can be expected to take place over an extended time period.
-- The highest levels of interest shown were in the income generating assets in the portfolio. Limited interest was shown in the longer term development projects at Pocharam and Juinagar.
Initial steps down the disposal route have been made and the Company will update shareholders as and when there is further information to make available. The Board remains committed to pursuing all options to realise cash for shareholders and will look to advance the disposal process in an orderly manner going forward.
Ian Henderson
Chairman
Review report by KPMG Audit LLC to Ishaan Real Estate plc
Introduction
We have been engaged by the Company to review the condensed set of financial statements in the half-yearly report for the six months ended 30 September 2012, which comprises the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of changes in equity, the consolidated statement of cash flows and the related explanatory notes. We have read the other information contained in the half-yearly report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly report in accordance with the AIM Rules.
As disclosed in note 2 the annual financial statements are prepared in accordance with IFRS. The condensed set of financial statements included in this half yearly report have been prepared in accordance with IAS 34 Interim Financial Reporting.
The accounting policies that have been adopted in preparing the condensed set of financial statements are consistent with those applied by the Group in its consolidated financial statements as at and for the year ended 31 March 2012.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly report for the six months ended 30 September 2012 is not prepared, in all material respects, in accordance with IAS 34 and the AIM Rules.
KPMG Audit LLC
Chartered Accountants
Douglas
Isle of Man
10 December 2012
Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2012
Unaudited Unaudited Audited From 1 April 2012 to 30 From 1 April 2011 to 30 From 1 April 2011 to 31 September 2012 September 2011 March 2012 Notes GBP000's GBP000's GBP000's -------------------------- -------------------------- -------------------------- Administrative expenses 4 (1,725) (1,913) (3,637) Share of post tax profit / (losses) of associates 6 2,405 (994) (847) Write-back / (write-down) of investments in associates net of investment adviser performance fees 5 2,578 (664) 3,138 -------------------------- -------------------------- -------------------------- Group operating profit / (loss) from continuing operations 3,258 (3,571) (1,346) Net finance income 52 58 116 -------------------------- -------------------------- -------------------------- Profit /(loss) from continuing operations before tax 3,310 (3,513) (1,230) Taxation - - - -------------------------- -------------------------- -------------------------- Profit / (loss) for the period from continuing operations 3,310 (3,513) (1,230) ========================== ========================== ========================== Other comprehensive (loss)/ income Translation reserve - associates 6 (2,882) (4,378) (8,856) -------------------------- -------------------------- -------------------------- Other comprehensive (loss) for the period (2,882) (4,378) (8,856) ========================== ========================== ========================== Total comprehensive profit / (loss) for the period attributable to equity holders of parent 428 (7,891) (10,086) ========================== ========================== ========================== Basic and diluted earnings / (loss) per share attributable to the equity holders of the parent during the period (expressed as pence per share) Basic earnings / (loss) per share 8 2.27 (2.41) (0.84) Diluted earnings / (loss) per share 8 2.27 (2.41) (0.84)
The attached notes 1 to 10 form an integral part of these unaudited consolidated financial statements.
Consolidated Statement of Financial Position
As at 30 September 2012
Unaudited Unaudited Audited 30 September 30 September 31 March 2012 2011 2012 Notes GBP000's GBP000's GBP000's -------------- -------------- ---------- ASSETS Non-current assets Investment in associates 6 94,399 94,090 92,555 -------------- -------------- ---------- 94,399 94,090 92,555 -------------- -------------- ---------- Current assets Trade and other receivables 64 91 95 Cash and short term deposits 8,543 11,783 10,139 -------------- -------------- ---------- 8,607 11,874 10,234 -------------- -------------- ---------- TOTAL ASSETS 103,006 105,964 102,789 ============== ============== ========== EQUITY AND LIABILITIES Equity attributable to shareholders of the parent company Share capital 7 1,459 1,457 1,458 Share capital redemption reserve 622 622 622 Foreign currency translation reserve (8,950) (1,590) (6,068) Retained profits 107,927 102,236 104,568 -------------- -------------- ---------- Total equity 101,058 102,725 100,580 -------------- -------------- ---------- Current liabilities Trade and other payables 801 829 805 Non-current liabilities Financial liabilities 1,147 2,410 1,404 TOTAL EQUITY AND LIABILITIES 103,006 105,964 102,789 ============== ============== ==========
The attached notes 1 to 10 form an integral part of these unaudited consolidated financial statements.
Consolidated Statement of Cash Flows
For the six months ended 30 September 2012
Unaudited Unaudited From 1 April From 1 April Audited 2012 to 30 2011 to 30 From 1 April September September 2011 to 31 2012 2011 March 2012 GBP000's GBP000's GBP000's ----------------------- ----------------- ------------------ OPERATING ACTIVITIES Profit / (loss) before tax from continuing operations 3,310 (3,513) (1,230) Adjustments for: Interest income (52) (58) (116) Share of post tax (profits) / losses of associates (2,405) 994 847 Grant of directors' annual share options 50 50 100 (Write-back) / write-down of investments in associates net of investment adviser performance fee (2,578) 664 (3,138) ----------------------- ----------------- ------------------ Operating loss before working capital changes (1,675) (1,863) (3,537) Decrease in trade and other receivables 31 38 34 Decrease in trade and other payables (4) (45) (69) ----------------------- ----------------- ------------------ Net cash flows from operating activities (1,648) (1,870) (3,572) ----------------------- ----------------- ------------------ INVESTING ACTIVITIES Interest received 52 58 116 Net cash flows generated from investing activities 52 58 116 ----------------------- ----------------- ------------------ FINANCING ACTIVITIES Net cash flows used in financing - activities - - ----------------------- ----------------- ------------------ Net movements in cash and cash equivalents (1,596) (1,812) (3,456) Cash and cash equivalents at the beginning of period 10,139 13,595 13,595 ----------------------- ----------------- ------------------ Cash and cash equivalents at the end of the period 8,543 11,783 10,139 ----------------------- ----------------- ------------------ Represented by: Cash and short term deposits 8,543 11,783 10,139 ----------------------- ----------------- ------------------ 8,543 11,783 10,139 ----------------------- ----------------- ------------------
The attached notes 1 to 10 form an integral part of these unaudited consolidated financial statements.
Consolidated Statement of Changes in Equity
For the six months ended 30 September 2012
Share capital Share Capital Retained earnings / Foreign currency Total equity Redemption Reserve (losses) translation reserve GBP000's GBP000's GBP000's GBP000's GBP000's -------------- -------------------- -------------------- -------------------- ------------- Balance at 1 April 2011 1,457 622 105,699 2,788 110,566 Total comprehensive loss for the period Loss for the period - - (3,513) - (3,513) Other comprehensive loss Foreign currency translation reserve - associates - - - (4,378) (4,378) -------------- -------------------- -------------------- -------------------- ------------- Total other comprehensive loss - - - (4,378) (4,378) -------------- -------------------- -------------------- -------------------- ------------- Total comprehensive loss for the period - - (3,513) (4,378) (7,891) -------------- -------------------- -------------------- -------------------- ------------- Transactions with owners, recorded directly in equity (Contributions by and distributions to owners) Issue of shares - - - - - under directors' annual options Grant of directors' annual share options - - 50 - 50 Total transaction with owners - - 50 - 50 -------------- -------------------- -------------------- -------------------- ------------- Balance at 30 September 2011 1,457 622 102,236 (1,590) 102,725 Total comprehensive loss for the period Loss for the period - - 2,283 - 2,283 Other comprehensive loss Foreign currency translation reserve - associates - - - (4,478) (4,478) -------------- -------------------- -------------------- -------------------- ------------- Total other comprehensive loss - - - (4,478) (4,478) -------------- -------------------- -------------------- -------------------- ------------- Total comprehensive (loss)/ income for the period - - 2,283 (4,478) (2,195) -------------- -------------------- -------------------- -------------------- -------------
The attached notes 1 to 10 form an integral part of these unaudited consolidated financial statements.
Consolidated Statement of Changes in Equity (continued)
For the six months ended 30 September 2012
Share Capital Retained earnings / Foreign currency Share capital Redemption Reserve (losses) translation reserve Total equity GBP000's GBP000's GBP000's GBP000's GBP000's -------------- -------------------- -------------------- -------------------- ------------- Transactions with owners, recorded directly in equity (Contributions by and distributions to owners) Issue of shares under directors' annual options 1 - (1) - - Grant of directors' annual share options - - 50 - 50 Total transaction with owners 1 - 49 - 50 -------------- -------------------- -------------------- -------------------- ------------- Balance at 31 March 2012 1,458 622 104,568 (6,068) 100,580 Total comprehensive loss for the period Profit for the period - - 3,310 - 3,310 Other comprehensive loss Foreign currency translation reserve - associates - - - (2,882) (2,882) -------------- -------------------- -------------------- -------------------- ------------- Total other comprehensive loss - - - (2,882) (2,882) -------------- -------------------- -------------------- -------------------- ------------- Total comprehensive profit / (loss) for the period - - 3,310 (2,882) 428 -------------- -------------------- -------------------- -------------------- ------------- Transactions with owners, recorded directly in equity (Contributions by and distributions to owners) Issue of shares under directors' annual options 1 - (1) - - Grant of directors' annual share options - - 50 - 50 Total transaction with owners 1 - 49 - 50 -------------- -------------------- -------------------- -------------------- ------------- Balance at 30 September 2012 1,459 622 107,927 (8,950) 101,058
The attached notes 1 to 10 form an integral part of these unaudited consolidated financial statements.
Notes to the Consolidated Financial Statements
Continued
1 The Company
The Company was incorporated in the Isle of Man on 11 August 2006 as a public company under the Isle of Man Companies Acts 1931 to 2004 with registered number 117470C. The Company's Ordinary Shares are traded on AIM.
The principal activity of the Company and its subsidiaries is that of investment holding.
The consolidated financial statements of Ishaan Real Estate plc comprise the Company and its subsidiaries (together referred to as the "Group").
This interim financial information for the period ended 30 September 2012 is unaudited and does not constitute statutory accounts within the meaning of the Companies Acts 1931 to 2004.
The statutory accounts for the period from 1 April 2011 to 31 March 2012 which were prepared in accordance with International Financing Reporting Standards (IFRS) have been filed and copies can be obtained from the Registered Office of the Company at Top Floor, 14 Athol Street, Douglas, Isle of Man. The auditors' report on those accounts was unqualified. This unaudited interim financial information includes the results of the Company and its wholly owned subsidiaries for the period under review.
2 Significant Accounting Policies
(a) Basis of accounting
The condensed financial statements have been prepared under historical cost convention except for investment properties that have been measured at fair value.
(b) Basis of preparation
The condensed financial statements have been prepared using accounting policies that are consistent with those followed in preparation of the Group's annual financial statements for the period 1 April 2011 to 31 March 2012, and in accordance with International Accounting Standards ("IAS") 34: Interim Financial Reporting. The consolidated financial statements have been prepared in pounds sterling.
(c) Other financial liabilities - Investment adviser performance fees
The provision for performance fees payable to the Investment Adviser represents the Directors' estimate of the present value of the future cash flows payable, discounted using the Directors' estimate of the risk adjusted value of money. These fees are considered to be directly attributable to the acquisition by the Group of its investment in its associates and the amount provided has been included in the cost of the Group's investment in associates. Subsequent to the date of acquisitions, revisions to these provisions are charged to the profit or loss.
(d) Investment property
The Group adopted Amendment to IAS 40 Investment property that amended the definition of investment property to include property that is being constructed or developed for future use as investment property.
Land and buildings owned by the Group for the purposes of generating rental income or capital appreciation or both and property that is being constructed or developed for future use as investment property (which includes freehold/leasehold land) are classified as investment properties.
Investment properties are initially measured at cost, including related transaction costs. Subsequent to initial recognition, investment properties are accounted for using the fair value model under IAS 40. Any gain or loss arising from a change in value is recognized in profit or loss.
When an item of property, plant and equipment is transferred to investment property following a change in its use, any differences arising at the date of transfer between the carrying amount of the item immediately prior to transfer and its fair value is recognized in other comprehensive income if it is a gain. Upon disposal of the item, the gain is transferred directly to retained earnings to the extent of the revaluation surplus recognized in other comprehensive income. Any loss arising in this manner is recognized in profit or loss immediately.
If the investment property becomes owner-occupied, it is reclassified as property, plant and equipment and its fair value at the date of reclassification becomes its deemed cost for subsequent accounting.
3 Segment Reporting
The Directors consider the Group to be operating in one geographic segment and one business segment since all investments are in India and all the operations in India are concerned with property development. Consequently no segmental disclosures have been presented.
4 Administrative expenses Unaudited Unaudited Audited From 1 April 2012 to 30 From 1 April 2011 to 30 From 1 April 2011 to 31 September 2012 September 2011 March 2012 GBP000's GBP000's GBP000's ---------------------------- ---------------------------- ---------------------------- Directors' fees and expenses 78 81 159 Secretarial and administration 62 58 110 Audit fees 39 37 85 Investment adviser fees 1,320 1,520 2,840 Other professional fees 114 110 244 Other expenses 62 57 99 Grant of Directors' annual share options 50 50 100 ---------------------------- ---------------------------- ---------------------------- 1,725 1,913 3,637 ============================ ============================ ============================ 5 Write-down of investments in associates
The Group writes-down its investments in associates, including the cost of performance fees payable, to its share of net assets in respect of those associates holding investment properties which were stated at valuation. The investment in one of the associates, which holds properties held for sale, was not written down and is stated at cost plus share of profits/losses and cost of performance fees payable.
Unaudited Unaudited Audited 30 September 2012 30 September 2011 31 March 2012 GBP000's GBP000's GBP000's ------------------- ------------------- --------------- Write-back / (write-down) of investments to share of net assets in associates 2,321 (1,265) 1,531 Investment adviser performance fees 257 601 1,607 ------------------- ------------------- --------------- 2,578 (664) 3,138 =================== =================== =============== 6 Investments in associates Unaudited Unaudited Audited 30 September 2012 30 September 2011 31 March 2012 GBP000's GBP000's GBP000's ---------------------------- ------------------- --------------- Unquoted Balance at the beginning of the period 92,555 100,727 100,727 Share of post tax profit / (losses) of associates 2,405 (994) (847) Write-back / (write-down) of investments to share of net assets in associates* 2,321 (1,265) 1,531 Foreign currency translation (2,882) (4,378) (8,856) ---------------------------- ------------------- --------------- Balance at the end of the period 94,399 94,090 92,555 ============================ =================== =============== 6 Investments in associates (continued)
*As detailed in note 5, the Group wrote-back/wrote-down its investments in associates except for one associate which holds properties held for sale. Had the fair value gains on the properties in this associate been recorded in the books, the investment in associate would have been higher by GBP 1.535 million (31 March 2012: GBP 7.114 million).
Properties held by the associates have been valued by Cushman & Wakefield (India) Pvt. Limited at 30 September 2012. All the properties were valued on the basis of market value. The valuations have been made in accordance with the appropriate sections of both the current Practice Statements and United Kingdom Practice Statements contained within the RICS Appraisal and Valuation Standards, 6(th) Edition (the "Red Book"). For development projects, the valuation assumes completion to a high standard and is based on gross development value less future expenditure to be incurred on costs of development.
Summarised financial information extracted from the interim financial statements of associates for six month period ended 30 September 2012 is given below:
Genext Trion Serene Magna Sundew Intime Newfound GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's ------------------------- --------- --------- --------- --------- --------- --------- --------- Share of the associates balance sheet: ------------------------- --------- --------- --------- --------- --------- --------- --------- Total assets 62,008 36,846 68,701 22,979 43,209 32,644 9,291 ------------------------- --------- --------- --------- --------- --------- --------- --------- Total liabilities 47,964 26,599 55,821 21,770 32,263 19,016 3,994 ------------------------- --------- --------- --------- --------- --------- --------- --------- Share of the associates results: ------------------------- --------- --------- --------- --------- --------- --------- --------- Total revenue 15,019 2,814 3,495 125 1,531 1,984 - ------------------------- --------- --------- --------- --------- --------- --------- --------- Profit/(loss) for the period (excluding movements in valuation of properties) 5,323 (73) (181) (2,358) (395) 274 (185) ------------------------- --------- --------- --------- --------- --------- --------- --------- Profit/(loss) for the period (excluding depreciation and movements in valuation of properties) 5,323 285 307 (2,246) (128) 698 (185) ------------------------- --------- --------- --------- --------- --------- --------- ---------
Summarised financial information extracted from the interim financial statements of associates for six month period ended 30 September 2011 is given below:
Genext Trion Serene Magna Sundew Intime Newfound GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's GBP000's ------------------------- --------- --------- --------- --------- --------- --------- --------- Share of the associates balance sheet: ------------------------- --------- --------- --------- --------- --------- --------- --------- Total assets 70,545 39,881 63,433 17,874 43,882 35,399 10,391 ------------------------- --------- --------- --------- --------- --------- --------- --------- Total liabilities 61,713 30,276 49,402 16,269 29,334 22,429 4,040 ------------------------- --------- --------- --------- --------- --------- --------- --------- Share of the associates results: ------------------------- --------- --------- --------- --------- --------- --------- --------- Total revenue 375 3,220 2,777 - 963 2,295 - ------------------------- --------- --------- --------- --------- --------- --------- --------- Profit/(loss) for the period (excluding movements in valuation of properties) 1,427 (217) (547) (332) (458) (677) (190) ------------------------- --------- --------- --------- --------- --------- --------- --------- Profit/(loss) for the period (excluding depreciation and movements in valuation of properties) 1,427 192 (267) (332) (258) 906 (190) ------------------------- --------- --------- --------- --------- --------- --------- --------- 6 Investments in associates (continued)
Details of the investments in associates are as follows:
% Holding % Holding Country of Type of 30 September 31 March Investee company Incorporation Shares 2012 2012 ------------------------------------ ---------------- ------------- -------------- ---------- Trion Properties Private Limited India Equity 40% 40% Preference 100% 100% ------------------------------------------------------------------- -------------- ---------- Serene Properties Private Limited India Equity 40% 40% Preference 100% 100% ------------------------------------------------------------------- -------------- ---------- Magna Warehousing and Distribution Private Limited India Equity 40% 40% Preference 100% 100% ------------------------------------------------------------------- -------------- ---------- Genext Hardware and Parks Private Limited India Equity 40% 40% ------------------------------------ ---------------- ------------- -------------- ---------- Sundew Properties Private Limited* India Equity 38.98% 40% ------------------------------------ ---------------- ------------- -------------- ---------- Intime Properties Private Limited** India Equity 38.98% 40% ------------------------------------ ---------------- ------------- -------------- ---------- Newfound Properties and Leasing Private Limited India Equity 40% 40% ------------------------------------ ---------------- ------------- -------------- ----------
The principal activity of all associates is real estate development.
* On 26 September 2012, the Board of Sundew Properties Private Limited ("Sundew") allotted additional 28,711 equity shares each of INR 10 for cash at par to Andhra Pradesh Industrial Infrastructure Corporation Ltd ("APIIC") for restoration of 11% equity stake of APIIC in Sundew. Consequently, restoration of APIIC's stake in Sundew has been effected through a transfer of shares owned in Sundew by K Raheja Corp Group and an issue of new shares to APIIC by Sundew. The issue of new shares and transfer of shares has resulted in the dilution of Ishaan's equity interest in Sundew from 40% to 38.98%.
** On 26 September 2012, the Board of Intime Properties Private Limited ("Intime") allotted additional 34,490 equity shares each of INR 10 for cash at par to Andhra Pradesh Industrial Infrastructure Corporation Ltd ("APIIC") for restoration of 11% equity stake of APIIC in Intime. Consequently, restoration of APIIC's stake in Intime has been effected through a transfer of shares owned in Intime by K Raheja Corp Group and an issue of new shares to APIIC by Intime. The issue of new shares and transfer of shares has resulted in the dilution of Ishaan's equity interest in Intime from 40% to 38.98%.
7 Share capital Unaudited Unaudited Audited 30 September 30 September 31 March 2012 2011 2012 -------------- -------------- ------------ Authorised: Number of ordinary shares of GBP0.01 each 400,000,000 400,000,000 400,000,000 Share Capital (GBP 000's) 4,000 4,000 4,000 Allotted, called up and fully paid: Number of ordinary shares of GBP0.01 each 145,854,133 145,681,721 145,801,158 Share Capital (GBP 000's) 1,459 1,457 1,458 8 Earnings per share
Basic and diluted earnings/(loss) per share
Basic earnings/(loss) per share is calculated by dividing the net profit/(loss) attributable to the equity shareholders of the Company by the weighted average number of ordinary shares outstanding during the period.
8 Earnings per share (continued)
Basic and diluted earnings/(loss) per share (continued)
Diluted earnings/(loss) per share is calculated by dividing the net profit/(loss) attributable to ordinary equitable holders of the parent by the weighted average number of Ordinary Shares outstanding during the period, plus the weighted average number of Ordinary Shares that would be issued on the conversion of all the dilutive potential Ordinary Shares into Ordinary Shares.
Unaudited Unaudited Audited 30 September 30 September 31 March 2012 2011 2012 ----------------------- -------------- --------------------- Profit / (loss) attributable to equity holders of the company (GBP'000) 3,310 (3,513) (1,230) Weighted average of number of ordinary shares in issue (thousands) 145,839 145,682 145,684 Weighted average number of ordinary shares in issue (diluted) (thousands) 145,839 145,682 145,684 Basic earnings /(loss) per share (pence) 2.27 (2.41) (0.84) ======================= ============== ===================== Diluted earnings/(loss) per share (pence) 2.27 (2.41) (0.84) ======================= ============== ===================== 9 Related party transactions
Investment Adviser Fees
The Investment Adviser is entitled to a performance fee in respect of each Mauritian SPV which is designed to encourage the Investment Adviser to seek the highest returns on the underlying projects. Pursuant to the performance fee arrangements, if the Mauritian SPVs achieve an SPV level IRR in respect of the partial or total realisation of an investment in excess of 10 per cent, then the Investment Adviser will be entitled to a performance fee of 20 per cent of the realised proceeds which exceeds the proceeds required to achieve a 10 per cent SPV level IRR (with such participation increasing to 30 per cent for that portion of the realised proceeds from an investment which exceeds the proceeds required to achieve a 20 per cent SPV level IRR). The fair value of the total performance fee payable to the Investment Adviser at 30 September 2012 is GBP1.147 million (31 March 2012: GBP1.404 million).
In addition, the annual base fee paid to the Investment Adviser for the period in accordance with the terms of the agreement is GBP1,320,450 (for the period ended 30 September 2011: GBP1,519,800). The annual base fee is calculated on a quarterly basis based on the agreed formula of 2% on committed capital less an allowance of GBP150,000 per annum pro-rated per quarter. Since October 2011, the annual base fee has been revised from 2% to 1.75% on committed capital less an allowance of GBP150,000 per annum pro-rated per quarter.
Directors' Interests
Neel Raheja is a shareholder and director of various K Raheja Corp entities. These entities include the Indian Investment Vehicles, which are 40% owned by the Company and K Raheja Corporate Services Private Limited which is contracted to provide services to the Indian Investment Vehicles.
The amount charged to the Indian Investment Vehicles by K Raheja Corporate Services Private Limited during the period towards project support service and royalty was GBP0.616 million (September 2011: GBP0.787 million) and other amounts paid to other K Raheja Corp entities were GBP 1.053 million (30 September 2011: GBP0.567 million).
The amount received by the Indian Investment Vehicles from K Raheja Corp entities towards income from lease rentals and other recoveries was GBP2.050 million (30 September 2011: GBP1.941).
As at 30 September 2012, the amounts of loan receivable by associate companies from K Raheja Corp entities totaled GBP72.661 million (31 March 2012: GBP76.110 million). The loans were interest bearing and as at 30 September 2012 interest owing totaled GBP4.799 million (31 March 2012: GBP7.857 million). In addition, as at 30 September 2012, the associate companies had loan balances owing to K Raheja Corp entities of GBP38.671 million (31 March 2012 of GBP37.292 million) and interest payable in relation to these loans of GBP2.154 million (31 March 2012: GBP2.751 million).
9 Related party transactions (continued)
The amount paid to K Raheja Corp Private Limited during the period was GBP1.841 million (September 2011: GBP1.724 million) towards deferred consideration for transfer of development rights for a project developed by one of the Indian Investment Vehicles.
Neel Raheja indirectly co-owns the Investment Adviser - Neerav Investment Advisory Services (Dubai) Limited. As at 30 September 2012, Neerav Investment Advisory Services (Cyprus) Private Limited, the parent company of the investment adviser, held 7,493,811 shares of the Company (31 March 2012: 7,493,811 shares).
10. Comparatives
Certain comparative figures have been reclassified to conform to the presentation adopted in these consolidated financial statement
This information is provided by RNS
The company news service from the London Stock Exchange
END
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