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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
West Pioneer | LSE:WPR | London | Ordinary Share | VGG955191074 | ORD USD0.10 (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 10.25 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMWPR
RNS Number : 0840U
West Pioneer Properties Limited
21 December 2012
Press Release 21 December 2012
West Pioneer Properties Limited
("West Pioneer" or the "Company")
Unaudited Interim Results
West Pioneer Properties Limited (AIM:WPR), a leading developer and operator of shopping malls and mixed use developments in west and south India, announces its unaudited interim results for the 6 months ended 30 September 2012.
Highlights
-- Major boost to Indian retail sector as Foreign Direct Investment ("FDI") in multi-brand retail approved by Parliament on 7 December 2012. This has improved confidence in the retail sector -- Steady progress being made in the Company's commercial and residential development projects at Kalyan -- Repositioning of the Kalyan Mall into a lifestyle/value mall progressing well but has led to a short term fall in rental income over the period -- The Company has successfully negotiated a new debt facility of US$11.83 million to fund capital expenditure at the Kalyan Mall, construction of commercial plaza, towers 3 and 4 at Kalyan and construction work at Aurangabad. The facility will be drawn down in phases, as required, over the next 1-2 years -- 20% depreciation in average value of Indian Rupee against the US Dollar for the period compared to the financial year ended 31 March 2012, materially affecting the reported profit -- Balance sheet remains robust as a result of prudent cash management with period end cash and cash equivalents of US$0.97million, while maintaining good levels of ongoing investment into inventory, together with an additional US$11.42 million unutilised bank facilities in place -- Development approvals at Nashik being pursued. Ground break plans will be announced once approvals are available.
Commenting on the results, Amit Jatia, Chairman of West Pioneer, said: "The period has been one of mixed news for the Company as its retail operations have been affected, as envisaged, by the ongoing re-engineering of the tenant mix in the Kalyan Mall. This is reflected in the fall in rental income which is expected to continue in the current financial year. However, once the re-positioning is completed this is likely to result in a rise in rental income.
"The Mall is therefore well placed to take advantage of increased confidence in the retail sector following the approval by Parliament of the relaxation of restrictions in Foreign Direct Investment. Progress in the residential and commercial development is continuing steadily and this should result in improved financial performance for the Company in the near future.
"The results, particularly the income statement, have been materially affected by depreciation in the value of Indian Rupee against the US Dollar over the last year.
"Although moving at slower pace, we remain confident of the intrinsic underlying values in the Aurangabad and Nashik properties. The Company is confident of making further progress on these sites in the future."
-Ends-
For further information:
West Pioneer Properties Limited Nitin Dattani, Executive Director Tel: +44 (0) 20 8424 0690 Shore Capital: Anita Ghanekar / Edward Mansfield Tel: +44 (0) 20 7408 4090
Media enquiries:
Abchurch Communications: Joanne Shears Tel: +44 (0) 20 7398 7709 joanne.shears@abchurch-group.com www.abchurch-group.com
Chairman's Statement
Indian Economy
Challenges from sluggish economic growth and high inflation continue with GDP expected to rise at 5.7% in the year to March 2013 and inflation currently running at 7.2%, well above the Central Bank's target of 5%. Business confidence has been boosted by recent steps taken by Central government allowing Foreign Direct Investment ("FDI") in the retail, aviation and insurance sectors. However, concerns in relation to rising levels of fiscal deficit and risk of spill-over of global economic slowdown still loom over the Indian economy.
Impact of depreciation of Rupee
The Indian Rupee has depreciated by around 20% against the US Dollar from the average exchange rate for the financial year ended 31 March 2012compared to the accounting period in the six months to 30 September 2012. This has had a material impact the income statement.
Retail
With the relaxation of FDI in multi-brand retail, retailers are preparing to scale up their operations. Many prominent international brands have expressed intentions to enter the Indian retail market revalidating strength and attractiveness of this largely unexploited industry. The policy aims to deploy FDI capital in retail infrastructure and other auxiliary industries. In addition to helping penetration of organised retail, this will also provide impetus to overall economic growth.
Residential
This sector is growing steadily on both volume and price fronts. In established markets, developers are producing luxury developments with ultra modern amenities. As units are becoming more expensive in established markets, further projects are being launched in extended suburbs to meet the demand in middle and lower segments. The outlook of the residential sector remains positive with ample opportunities in various micro markets catering to different income levels.
Financial Review
In the period ended 30 September 2012, West Pioneer achieved revenue and other income of US$1.7million (2011: US$2.4million), including property rentals and other operating income of US$1.6million (2011: US$2.3million). Loss before tax was US$(1.7million) (2011: US$(0.6) million) and basic loss per share was US$(0.0191) (2011: Loss US$(0.0033)). Net assets at the period end were US$55.4million (2011: US$61.1million), including cash and short term deposits of US$1.0 million (2011: US$1.8 million). Interest bearing loans and borrowings increased from US$10.0 million to US$10.2million during the period, inclusive of debt repayments.
The Company has also continued to manage its working capital carefully and after having invested US$2.9 million in increasing its inventory, the Board is pleased to still be able to report US$1.0 million of cash on its balance sheet.
Operating Review
Kalyan
The Company has been successful in implementing its retail-led mixed use development model at Kalyan (the "Mall"). As a mixed use development, West Pioneer has the benefit of direct access to consumers through the residential and commercial projects, which in turn offers valuable consumer insight and synergies for use in the Mall itself. As previously announced, these insights have resulted in the strategic focus for the Mall shifting to consumer value and the successful positioning of the Mall as a value and lifestyle destination.
Kalyan - Retail
Phase I of the 500,000 sq. ft. Mall includes a fully functional food court and entertainment zone on the second floor, along with other retail offerings on Lower Ground and Ground floors. The repositioning exercise undertaken which is focused on establishing the Mall as a leading value shopping and lifestyle destination is in progress. This has led to a short term loss of income. Capital and other expenditure is also being incurred as part of this exercise which is aimed at improving the look and feel of the Mall and upgrading infrastructure at the premises.
However, the Company is confident that on completion of this exercise the Mall will provide enhanced opportunities to lifestyle retailers, resulting in higher rentals and footfalls in the near future, which is anticipated to have a positive effect on Mall profitability.
Leasing levels at the Mall remained steady at 74% during the period and the Company is currently in negotiation with a number of other major brands to lease the remaining retail space.
Kalyan - Residential
The Company is pleased that the development of the first two residential towers of Phase II at Kalyan is progressing well. The first tower is nearing completion with final activities under way. Completion of tower A is expected to be in the first quarter of FY14. The profits from completion are therefore expected be recognised in the September 2013 interim results. The second tower development is on schedule and is currently completed to the 17th floor. Response from customers remains encouraging with 89% of the units pre-sold in these two towers.
Planning permissions for the fourth tower are in progress and the launch will take place upon receipt of these planning permissions. The third tower, which is already approved, will be launched together with the fourth tower. The fourth tower will see the total residential area being developed at Kalyan rising to over 810,000 sq. ft.
Kalyan - Commercial plaza
Significant progress has been made in Phase III of the development, a commercial plaza ("Metro Plaza") of 68,000 sq. ft. of office space with the building structure completed recently. Work is progressing well and the development is expected to be completed in the next few months. Metro Plaza will have small commercial units for leasing on the ground floor and units for sale on the first and second floors, with the target market being self-employed professionals such as doctors, lawyers and architects. The response to the development continues to be encouraging with 40% of the space pre-sold at an estimated 50% premium over current residential sale rates. This is in line with the Company's strategy to take advantage of opportunities where the maximum value can be generated.
Nashik
Development permissions at Nashik are being pursued with various authorities and ground break will be announced once these permissions are in place. The Company is confident of initiating activities on this site in the future and exploiting the intrinsic value the Nashik property carries.
Aurangabad
The Company has commenced development of retail and warehousing space at Aurangabad with an intention to sell on completion.
Outlook
The Company's focus in the near term remains on the repositioning and refurbishment of the Kalyan mall and establishing it as a value and lifestyle destination. This in turn is likely to increase revenues and help support the long term plans of the Company. In addition, the Company is optimistic of earning good rental income from the ground floor space at the Metro Plaza project on completion. The Development of residential and commercial projects at Kalyan is also a priority and the Company intends to deliver these projects to customers in a phased manner.
The Company is confident of making further progress in the development of the Nashik and Aurangabad sites in the near future and will update shareholders on the progress of these projects. The Board is confident of continuing progress on establishing West Pioneer as a formidable brand standing for quality and transparency among retailers and consumers. The Board believes strongly in the Company's ability to deliver growth over the longer term.
Amit Jatia
Chairman
20 December 2012
INTERIM CONSOLIDATED INCOME STATEMENT
For the six month period ended 30 September 2012
2012 2011 Notes Unaudited -------------------------- $ $ Revenue Property rentals 826,275 1,147,780 Other operating income 818,082 1,153,868 ------------ ------------ Total Revenue 1,644,357 2,301,648 Finance and other income 6 105,897 106,812 Total Income 1,750,254 2,408,460 Expenses Property revaluation loss (669,925) (46,943) Direct operating expenses for rent-earning properties (1,138,976) (1,132,494) Administrative expenses (757,160) (1,010,806) Selling and distribution costs (189,685) (232,322) Finance costs 7 (734,967) (585,817) ------------ ------------ Total expenses (3,490,713) (3,008,382) Loss before tax (1,740,459) (599,922) Income tax credit 8 216,766 335,092 Loss after tax (1,523,693) (264,830) ============ ============ Attributable to: Equity holders (1,523,693) (264,830) Earnings per share (attributable to equity holders) 9 Basic (0.0191) (0.0033) Diluted (0.0190) (0.0033)
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six month period ended 30 September 2012
2012 2011 ------------ ------------ Unaudited -------------------------- $ $ Loss for the period (1,523,693) (264,830) ============ ============ Exchange loss on translation of foreign operations (832,077) (5,759,269) Other comprehensive loss for the period, net of tax (832,077) (5,759,269) ------------ ------------ Total comprehensive loss for the period, net of tax (2,355,770) (6,024,099) ============ ============ Attributable to: Equity holders (2,355,770) (6,024,099) (2,355,770) (6,024,099) ============ ============
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 September 2012
30 September 31March 2012 2011 2012 ----------------- ----------- ------------- Notes Unaudited Audited $ $ $ Assets Non-current assets Property, plant and equipment 1,622,635 3,151,545 1,671,041 Investment properties 10 53,810,775 68,557,254 54,329,562 Intangible assets 4,542 8,385 6,321 Other non-financial assets 11,913 - 16,103 Other financial assets 335,388 289,769 322,879 Advance income tax 182,447 292,369 308,076 55,967,700 72,299,322 56,653,982 ------------- --------------- ------------- Current assets Inventories 11 32,551,634 10,081,640 29,557,631 Investments - held for trading 12 - 435,120 438,592 Trade and other receivables 13 920,500 1,068,846 966,668 Other non-financial assets 719,702 250,818 531,693 Prepayments 84,754 175,867 43,501 Cash and short-term deposits 5 967,153 1,760,516 771,640 35,243,743 13,772,807 32,309,725 ------------- --------------- ------------- Total Assets 91,211,443 86,072,129 88,963,707 ============= =============== ============= Equity and liabilities Equity attributable to the equity holders Issued capital 7,996,130 7,996,130 7,996,130 Share premium 45,717,870 45,717,870 45,717,870 Retained earnings 15,140,782 17,325,675 16,664,475 Employee equity benefit reserve 561,185 554,104 559,427 Foreign currency translation reserve (14,009,168) (10,502,064) (13,177,091) ------------- --------------- ------------- 55,406,799 61,091,715 57,760,811 ------------- --------------- ------------- Non current liabilities Interest bearing loans and borrowings 17 7,534,519 - 4,453,381 Advance from sale of units 12,520,340 5,493,409 8,269,352 Other financial liabilities 4,108,163 1,018,516 3,817,688 Other non-financial liabilities 34,394 15,300 6,282 Employee benefit liability 51,341 49,139 48,620 Deferred tax liability 6,174,691 7,918,438 6,488,338 30,423,448 14,494,802 23,083,661 ------------- --------------- ------------- Current liabilities Trade and other payables 1,050,446 1,848,949 1,442,463 Interest bearing loans and borrowings 17 2,691,491 7,423,863 5,552,766 Other financial liabilities 1,614,613 1,182,870 1,107,284 Other non-financial liabilities 24,646 29,930 16,722 5,381,196 10,485,612 8,119,235 ------------- --------------- ------------- Total Liabilities 35,804,644 24,980,414 31,202,896 ------------- --------------- ------------- Total Equity and Liabilities 91,211,443 86,072,129 88,963,707 ============= =============== =============
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Forthe six month period ended 30 September 2012
Attributable to equity holders ------------------------------------------------------------------------------------------------------------------------- Employee equity Foreign currency Issued Share Retained benefits translation Total capital premium earnings reserve reserve Equity ------------------ ------------------ ------------------ -------------- ------------------- ------------------------ $ $ $ $ $ $ Balance as at 1 April 2012 7,996,130 45,717,870 16,664,475 559,427 (13,177,091) 57,760,811 Loss for the period - - (1,523,693) - - (1,523,693) Other comprehensive loss - - - - (832,077) (832,077) ------------------ ------------------ ------------------ -------------- ------------------- --------------- Total comprehensive loss - - (1,523,693) - (832,077) (2,355,770) Share based payment - - - 1,758 - 1,758 Balance as at 30 September 2012 7,996,130 45,717,870 15,140,782 561,185 (14,009,168) 55,406,799 ================== ================== ================== ============== =================== =============== Balance as at 1 April 2011 7,996,130 45,717,870 17,449,183 690,216 (4,742,795) 67,110,604 Loss for the period - - (264,830) - - (264,830) Other comprehensive loss - - - - (5,759,269) (5,759,269) ------------------------------ ------------------ ------------------ ------------------ -------------- ------------------- Total comprehensive loss - - (264,830) - (5,759,269) (6,024,099) Share based payment - - - 5,210 - 5,210 Transfer to retained earnings on options forfeited - - 141,322 (141,322) - - Balance as at 30 September 2011 7,996,130 45,717,870 17,325,675 554,104 (10,502,064) 61,091,715 ============================== ================== ================== ================== ============== ===================
INTERIM CONSOLIDATED CASH FLOW STATEMENT
Forthe six month period ended 30 September 2012
2012 2011 Notes Unaudited ------------------------ $ $ Operating activities Loss before tax (1,740,459) (599,922) Adjustments to reconcile loss before tax to net cash flows Depreciation and amortisation 10,114 14,982 Provision for doubtful debts 81,696 157,222 Share based payments expense 1,758 5,210 Decrease in fair value of investment properties 669,925 46,943 Decrease / (Increase) in value of investments held-for-sale 27,633 9,377 Foreign exchange difference (54,325) 39,428 Net gain on sale of investment (106) (5) Dividend income (12,573) (5,229) Interest income (26,849) (78,728) Interest expense 702,771 536,532 (340,415) 125,810 Working Capital adjustments (Increase) in prepayments (current) (32,700) (139,325) (Increase) / Decrease in trade and other receivables (82,700) (350,118) (Increase) / Decrease in other assets (current) (191,762) 43,208 (Increase) in other assets (non-current) (16,276) (3,671) (Increase) in inventories (3,105,278) (1,083,815) (Decrease) in trade and other payables (current) (273,132) (83,828) Increase / (Decrease) in other liabilities (current) 425,407 45,790 Increase in other liabilities (non current) 4,337,247 1,037,428 ----------- ----------- 1,060,806 (534,331) Income tax refund / (paid) 149,639 268,877 Net cash flows from/ (used in) operating activities 870,030 (139,644) ----------- ----------- Investing activities Proceeds from sale of held-for-trading investments 3,712,808 1,528,590 Purchase of property, plant and equipment and intangible assets (2,517) (9,086) Purchase of held-for-trading investments (3,247,785) (1,438,428) Capital expenditure on Investment Property (829,586) (101,212) Dividend income 12,573 5,229 Interest received 26,849 52,731 Net cash flows (used in)/from investing activities (327,658) 37,824 ----------- ----------- Financing activities Proceeds from borrowings 5,807,143 1,808,283 Repayment of borrowings (5,683,236) (1,668,040) Interest paid (460,216) (344,089) ----------- ----------- Net cash flows (used in) financing activities (336,309) (203,846) ----------- ----------- Net increase/(decrease) in cash and cash equivalents 206,063 (305,666) Net foreign exchange difference (10,717) (63,883) Cash and cash equivalents at 1(st) April 752,868 1,492,741 ----------- ----------- Cash and cash equivalents at 30(th) September (See Note 5) 948,214 1,123,192 ----------- -----------
Notes to interim condensed consolidated financial statements
For the six months period ended 30 September 2012
1. Corporate information
The interim condensed consolidated financial statements of West Pioneer Properties Limited and its subsidiaries ('the Group') for the six months ended 30 September 2012 were authorised for issue in accordance with a resolution of the directors on 17 December 2012.
West Pioneer Properties Limited ('the Company') is a limited company, incorporated on 5 September 2006 and domiciled in the British Virgin Islands, whose shares are publicly traded on the Alternative Investment Market (AIM) of the London Stock Exchange. Winmore Investments Limited is the holding company of the Company.
The Company has the following wholly owned subsidiary companies
Country of incorporation West Brick Investment Limited ('WBIL') Mauritius West Brick Properties Limited ('WBPL') Mauritius West Pioneer Properties (India) Private India Limited ('WPPIPL') Westfield Entertainment Private Limited India ('WEPL')
The Company, WBIL and WBPL are investment holding companies, having no other business activities. WPPIPL and WEPL are in the business of development and management of shopping malls, development and sale of residential, office and warehousing property and development of mixed use properties in India.
2. Basis of preparation and accounting policies
Basis of preparation
The interim condensed consolidated financial statements for the six months ended 30 September 2012 have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the European Union.
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 31 March 2012.
Significant accounting policies
The accounting policies adopted in the preparation of the interim condensed financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 March 2012, except for the adoption of following new and amended IFRS and IFRIC interpretations applicable from 1 April 2012:
IAS 12 - Deferred Tax: Recovery of Underlying Assets (Amendment)
This amendment to IAS 12 includes a rebuttable presumption that the carrying amount of investment property measured using the fair value model in IAS 40 will be recovered through sale and, accordingly, that any related deferred tax should be measured on a sale basis. The presumption is rebutted if the investment property is depreciable and it is held within a business model whose objective is to consume substantially all of the economic benefits in the investment property over time, rather than through sale. Specifically, IAS 12 requires that deferred tax arising from a non-depreciable asset measured using the revaluation model in IAS 16 should always reflect the tax consequences of recovering the carrying amount of the underlying asset through sale. Effective implementation date is for annual periods beginning on or after 1 January 2012.
The Group has investment properties at fair value and under the tax jurisdiction applicable to the location of the investment property, certain portion of the property is depreciable and the balance is taxable on a sale basis. The adoption of this amendment did not have any significant impact on the financial statements of the group.
The following amendments to IFRSs standards did not have any impact on the accounting policies, financial position or performance of the Group:
IFRS 7 - Disclosures - Transfers of financial assets (Amendment)
The IASB issued an amendment to IFRS 7 that enhances disclosures for financial assets. These disclosures relate to assets transferred (as defined under IAS 39). If the assets transferred are not derecognised entirely in the financial statements, an entity has to disclose information that enables users of financial statements to understand the relationship between those assets which are not derecognised and their associated liabilities. If those assets are derecognised entirely, but the entity retains a continuing involvement, disclosures have to be provided that enable users of financial statements to evaluate the nature of, and risks associated with, the entity's continuing involvement in those derecognised assets. Effective implementation date is for annual periods beginning on or after 1 July 2011 with no comparative requirements.
The group did not have any assets that have been transferred and not derecognised.
IFRS 1 - Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendment)
When an entity's date of transition to IFRS is on or after the functional currency normalisation date, the entity may elect to measure all assets and liabilities held before the functional currency normalisation date, at fair value on the date of transition to IFRS. This fair value may be used as the deemed cost of those assets and liabilities in the opening IFRS statement of financial position. However, this exemption may only be applied to assets and liabilities that were subject to severe hyperinflation. Effective implementation date is for annual periods beginning on or after 1 July 2011 with early adoption permitted.
The application of this amendment did not have any impact on the financial statements of the group.
The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
3. Seasonality of operations
The Group is engaged in the construction and operation of shopping malls and generates revenue in the form of lease rentals which are not seasonal in nature.
The Group constructs residential apartments, office and warehousing property for ultimate sale for which it receives construction linked payments based on progress of construction which are not seasonal in nature.
4. Segment information
The following tables present revenue and profit / (loss) information regarding the Group's operating segments for the six months ended 30 September 2012 and 2011 respectively.
Six months ended 30 September 2012
Retail Residential Office Warehousing Total ------------ ------------- -------- -------------- ------------ $ $ $ $ $ Segment revenue Property rent and other operating income 1,644,357 - - - 1,644,357 Property operating expenses (1,138,976) - - - (1,138,976) Net valuation loss on investment property (669,925) - - - (669,925) Related finance costs (282,400) - - (128,345) (410,745) ------------ ------------- -------- -------------- ------------ Segment profit/(loss) (446,945) - - (128,345) (575,289) Administrative expenses (757,160) Selling and distribution expenses (189,685) Finance costs (324,222) Finance income 105,897 -------------- ------------ Loss before tax (1,740,459) ============== ============
Finance income includes other income of US$55,776.
Six months ended 30 September 2011
Retail Residential Office Warehousing Total ------------ ------------- --------- -------------- ------------ $ $ $ $ $ Segment revenue Property rent and other operating income 2,301,648 - - - 2,301,648 Property operating expenses (1,132,494) - - - (1,132,494) Net valuation loss on investment property (36,897) - (10,046) - (46,943) Related finance costs (393,036) (16,685) - - (409,721) ------------ ------------- --------- -------------- ------------ Segment profit/(loss) 739,221 (16,685) (10,046) - 712,490 Administrative expenses - (1,010,806) Selling and distribution expenses (232,322) Finance costs (176,096) Finance income 106,812 ------------ Loss before tax (599,922) ============
Finance income includes other income of $100,267.
The following table presents segment assets of the Group's operating segments as at 30 September 2012 and 31 March 2012.
Retail Residential Office Warehousing Others Total $ $ $ $ $ $ Segment assets At 30 September 2012 55,194,778 16,926,448 3,186,587 13,330,652 2,572,978 91,211,443 ----------- -------------- ---------- -------------- ---------- ----------- At 31 March 2012 56,020,750 14,282,257 2,514,541 13,470,629 2,675,530 88,963,707 =========== ============== ========== ============== ========== =========== Segment liabilities At 30 September 2012 8,990,150 16,198,608 1,332,885 2,311,110 - 28,832,753 ----------- -------------- ---------- -------------- ---------- ----------- At 31 March 2012 9,137,738 13,096,741 487,690 1,698,179 - 24,420,348 =========== ============== ========== ============== ========== ===========
Assets classified as "others" are made up of US$1,564,762 (31 March 2012: US$1,586,386) invested in hotel property; US$21,444 (31(st) March 2012: US$17,397) invested in property, plant & equipment: US $Nil (31 March 2012: US $438,592) in investments-held for trading: US$686,418 (31(st) March 2012: US$339,016) in cash & cash equivalents; and US$300,353 (31 March 2012: US$294,139) in other financial assets.
Reconciliation of segment liabilities to amounts appearing on the statement of financial position
30 September 31 March 2012 2012 $ $ Segment operating liabilities 28,832,753 24,420,348 Other financial liabilities 2,429 3,386 Employee benefit liability 51,341 48,620 Deferred tax liability 6,174,692 6,488,338 Trade and other payables 315,267 197,690 Other financial liabilities 428,163 44,514 ------------- ----------- Group operating liabilities 35,804,644 31,202,896 ============= =========== 5. Cash and short-term deposits 30 September 2012 2011 -------- ---------- Unaudited -------------------- $ $ Cash at bank and in hand 948,214 1,123,192 Short term deposits 18,939 637,324 -------- ---------- 967,153 1,760,516 ======== ==========
Short term deposits include restricted deposits of US$18,939 (30September 2011 US$637,324) kept as a margin money towards bank guarantee issued by bank.
A reconciliation of the cash and cash equivalents as above to the amounts considered for the interim consolidated cash flow statement is presented below.
30 September 2012 2011 --------- ---------- Unaudited --------------------- $ $ Cash and cash equivalents as above 967,153 1,760,516 Restricted deposits (18,939) (637,324) --------- ---------- Cash and cash equivalents for the purpose of the cash flow 948,214 1,123,192 ========= ========== 6. Finance and other income
Finance income during the period ended 30 September 2012 comprises:
30 September 2012 2011 -------- -------- Unaudited ------------------ $ $ Foreign exchange gain 37,362 - Dividend earned on investments 12,573 5,229 Profit on sale of investments 106 - Bank interest 80 1,316 50,121 6,545 Other income 55,776 100,267 -------- -------- 105,897 106,812 ======== ======== 7. Finance costs
Finance costs during the period ended 30 September 2012 and 2011 comprise primarily interest expense.
8. Income taxes
The major components of the income tax expense in the interim consolidated income statement, arising from the operations of the Group's subsidiaries in India and subject to Income Tax in that Jurisdiction are:
30 September 2012 2011 ---------- ---------- Unaudited ---------------------- $ $ Current income tax Current income tax charge - - Deferred income tax Relating to origination and reversal of temporary differences (216,766) (335,092) ---------- ---------- Income tax credit (216,766) (335,092) ========== ========== 9. Earnings per share
Basic earnings per share amount is calculated by dividing net (loss) after tax for the period attributable to ordinary equity holders by the weighted average number of ordinary shares outstanding during the six months.
The following reflects the income and share data used in the earning per share computations for six months ended on
30 September 2012 2011 ------------ ----------- Unaudited ------------------------- $ $ Profit attributable to equity holders (1,523,693) (264,830) ------------ ----------- Number of shares Weighted average number of shares for basic earnings per share 79,961,298 79,961,298 Effect of dilution in respect of employee stock options 24,448 24,448 ------------ ----------- Weighted average number of shares adjusted for the effect of dilution 79,985,746 79,985,746 ------------ ----------- Basic earnings per share (par value $0.10) (0.0191) (0.0033) Diluted earnings per share (par value $0.10) (0.0190) (0.0033)
10. Investment Properties
Movements during the period
30 September 2012 31 March 2012 30 September 2011 Under Under Under Completed Construction Total Completed Construction Total Completed Construction Total ----------- ------------- ----------- ------------- ------------- ------------- ------------ ------------- ------------ Unaudited Audited Unaudited ----------- ------------- ----------- ------------- ------------- ------------- ------------ ------------- ------------ $ $ $ $ $ $ $ $ $ Balance at 1(st) April 37,964,215 16,365,347 54,329,562 45,418,498 29,600,457 75,018,955 45,418,498 29,600,457 75,018,955 Transfer to inventory - - - - (11,519,216) (11,519,216) - - - Additions during the period comprising: - Expenditure incurred 438,823 444,554 883,377 90,471 385,668 476,139 5,339 135,374 140,713 -Acquisition of land - - - 551,855 35,495 587,350 Adjustment to fair value (438,823) (229,144) (667,967) (2,544,489) 970,660 (1,573,829) 13,881 (135,374) (121,493) Income from straight lining (1,958) - (1,958) 156,603 - 156,603 74,550 - 74,550 Foreign currency translation (517,555) (214,684) (732,239) (5,708,723) (3,107,717) (8,816,440) (3,971,846) (2,583,625) (6,555,471) Balance at end date 37,444,702 16,366,073 53,810,775 37,964,215 16,365,347 54,329,562 41,540,422 27,016,832 68,557,254 -------------- ----------- ------------- ----------- ------------- ------------- ------------- ------------ ------------- ------------
Note: In October 2011 WPPIPL has entered into a non-binding Memorandum of Understanding (MOU) to develop and sell, subject to contract, its asset in Aurangabad, India for a total cash consideration of approximately US$14,400,839. Under the terms of the MOU, the Company will develop the project as retail and warehousing space.
Upon commencement of construction the company has transferred the amounts in respect of the Aurangabad property aggregating US$11,519,216 from investment property to inventory.
Significant assumptions
The fair value of all investment properties has been assessed by the Directors at the end of the reporting period.
Further, the methodology and key estimates in the valuation of completed investment property are the same as that for 31(st) March 2012 except that the average rent is assumed at US$0.65 per sq ft per month (31(st) March 2012: US$0.66 per sq ft per month). Although there is an increase in average rent in rupee terms during the period, the average rent in dollar terms has been impacted due to the depreciation of the Indian rupee against the US dollar.
The discount rate used in the valuation of completed properties remains unchanged at 14%.
11. Inventories
30(th) September 31(st) March 2012 2011 2012 ----------- ----------- ------------- Unaudited Audited ------------------------ ------------- $ $ $ Work in progress 32,298,803 9,889,522 29,299,800 Construction Material 251,073 189,628 255,519 Diesel Stock 1,758 2,490 2,312 32,551,634 10,081,640 29,557,631 =========== =========== =============
Work in progress represents the inventory for the residential & office construction of the group at Kalyan and for the retail and warehouse space at Aurangabad.
12. Investments held-for-trading
Investments held-for-trading have a maturity from one month to three months which can be redeemed and liquidated at any point of time until maturity.
These are valued at fair value through income statement. All the investments are quoted instruments and their carrying values approximate their fair values.
13. Trade and other receivables
30(th) September 31(st) March 2012 2011 2012 ---------- ---------- ------------- Unaudited Audited ---------------------- ------------- $ $ $ Trade receivables (Net) 708,926 729,480 807,631 Trade receivable from related parties (Net) 204,072 226,015 153,529 Accrued income 7,502 113,351 5,508 Other advances 719,702 250,818 531,693 1,640,202 1,319,664 1,498,361 ========== ========== ============= As at 30(th) September 2012, the Company has provided for doubtful trade receivables aggregating US$552,830 (30(th) September 2011: US$520,108; 31(st) March 2012: US$474,562).
14. Share-based payment
There were no new options granted to the employees of the Group (including key management personnel) under the Employee Stock Option Plan 2007 ('the plan').
The share based payments expense during the period arising from equity settled share-based payment transactions aggregated US$1,758 (30(th) September 2011: US$5,210).
15. Commitment and Contingencies
a. Contingencies
At 30(th) September 2012 there are no changes in the contingencies which were outstanding at 31(st) March 2012 except for the following
1. SDR Clothing Co Pvt. Ltd. (Lanos) has challenged the arbitration Award concluded in favour of WPPIPL by filing an Arbitration Petition in Bombay High Court. The said petition is admitted and is pending for decision.
WPPIPL is contesting this claim and does not believe that the proceedings will have a material adverse impact on the Group.
2. The Bombay High Court on 14(th) December 2012 has admitted the legal case in relation to the Nashik land and continued the interim stay granted earlier in favour of the Company. The matter will now be heard finally by the Bombay High Court. The detailed order is yet to be received by the Company and implications, if any, will be ascertained on receipt of the same.
b. Commitments
WPPIPL has contractual commitments amounting to US$3,754,488 (31(st) March 2012: US$NIL) towards construction and for the acquisition of property, plant and equipment for the projects under construction.
16. Related party transactions
The following table provides the total amount of transactions, which have been entered into with the related parties during the six months ended 30(th) September 2012 and the outstanding balances as at 30(th) September 2012 and 2011.
For the six months ended Related Party 30(th) September 2012 2011 ------- ------------------ Unaudited --------------------------- $ $ Transactions with parent company a. Winmore Investments Limited Consultancy fees expenses 43,109 44,085 Amount due (to) related party (21509) - Transactions with other related parties Enterprises over which significant influence exercised by the Jatia family a. Hardcastle Restaurants Private Limited Rental income for premises leased 59,599 54,430 Common Area Maintenance income for premises leased 13,888 16,350 Income - Reimbursement for premises leased 75,707 75,781 Expenses - Reimbursement 15,467 - Provision for doubtful debt expenses for the period 5,248 12,951 Provision for doubtful debt as at 31,876 29,010 Amount due from related party 36,938 56,675 b. Hardcastle & Waud Manufacturing Company Limited Expenses - Reimbursement 13,288 20,161 Lease rent expenses for Kalyan land by WPPIPL - 39,469 Interest expenses for deferred credit on purchase of Kalyan land by WPPIPL 206,862 - Amount due (to) related party (2,984,350) (20,837) c. Vishwas Investment & Trading Company Private Limited Expenses - Reimbursement 2,431 5,437 Office premises rent expenses 47,500 50,849 Security deposit given - 10,012 Amount due from related party 78,325 93,246 d. Global Trendz Limited * Provision for doubtful debt as at NA 16,143 Amount due (to) / from related party NA 10,628 * Relationship ceases to exist from December 2010 e. Fame India Limited Rental income for premises leased 135,488 157,266 Common Area Maintenance income for premises leased 61,065 75,488 Income - Reimbursement for premises leased 115,296 150,528 Provision for doubtful debt expenses for the period - 20,970 Provision for doubtful debt as at 150,000 148,325 Amount due from related party (3,554) 178,645 f. International Financial Services Limited Admin expenses 16,473 11,355 Amount due (to) related party (11,875) (4,388) g. Bungee Fashions Private Limited ** Common Area Maintenance income for premises leased NA 4,317 Income - Reimbursement for premises leased NA 5,278 Amount due from related party NA 3,367 ** Relationship ceases to exist from March 2011 Transactions with key managerial personnel Foreign Travel - 18,933 Chief Executive Officer's compensation 75,669 83,240 Other Short-term employee benefits 3,774 11,482 Directors Remuneration 65,231 71,731 Share based payments expense on options granted 1,758 5,210 Post - employment benefits 2,770 3,667 Amount due (to)/ from related party (663) (10,716) Loans taken from related parties and key management personnel of the group a. Amit Jatia Loan given by - - Loan repaid to - - Interest expense - 43,174 Amount due (to) related party - (675,734) b. Anurag Jatia Loan given by 72,917 - Loan repaid to - - Interest expense 63 22,306 Amount due (to) related party (72,983) (340,799) c. Ayush Amit Jatia Loan given by 186,553 217,133 Loan repaid to - - Interest expense 20,073 10,258 Amount due (to) related party (446,292) (226,566) d. Banwari Lal Jatia Loan given by - 100,524 Loan repaid to - - Interest expense - 3,967 Amount due (to) related party - (104,173) e. Banwari Lal Jatia (HUF) Sale of flat - 4,423 Loan given by 89,962 466,433 Loan repaid to 107,955 76,398 Interest expense 10,901 31,052 Amount due (to) related party (203,242) (419,987) f. Lalita Devi Loan given by 28,409 310,017 Loan repaid to 73,864 - Interest expense 3,038 12,235 Amount due (to) related party (20,508) (321,269) g. Akshay Amit Jatia Loan given by 441,288 - Loan repaid to 37,879 - Interest expense 18,321 - Amount due (to) related party (422,444) - h. Amit Jatia (HUF) Loan given by 2,841 - Loan repaid to 7,576 - Interest expense 12,799 - Amount due (to) related party (187,949) - i. Anurag Jatia (HUF) Loan given by - - Loan repaid to 303,030 - Interest expense 7,734 - Amount due (to) related party (134,886) - j. Usha Devi Jatia Loan given by 616,477 - Loan repaid to 448,864 - Interest expense 14,673 - Amount due (to) related party (182,858) - k. Vishwas Investment & Trading Company Private Limited Loan given by 861,742 556,905 Loan repaid to 4,243,371 110,577 Interest expense 112,551 5,749 Amount due (to) related party (625,379) (511,055) l. Westlife Development Limited Loan given by - - Loan repaid to - 275,437 Interest expense - 1,658 Amount due (to) related party - - m. West Leisure Resorts Private Limited Loan given by - - Loan repaid to - 267,395 Interest expense - 596 Amount due (to) related party - - n. Anand Veena Twisters Pvt. Ltd Loan given by 353,220 - Loan repaid to 350,379 - Interest expense 10,212 - Amount due (to) related party (13,451) -
17. Events occurring after the reporting period
Since the balance sheet date WPPIPL has arranged loan facility of US$11,833,333 with The Ratnakar Bank Limited. The effective interest rate currently is 14.30% i.e. base rate plus 3.30% and is secured against the assets of WPPIPL. To date WPPIPL has drawn down US$1,759,732 of the available facility.
18. Copy of the Interim Report
Copies of the Interim Report are available to download from the Company's website at www.west-pioneer.com/.
- Ends -
This information is provided by RNS
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