30 Sep 2008 17:43
30 September 2008
Mortice Ltd
Financial results for the period 9 January 2008 to 31 March 2008
Mortice Ltd (AIM:MORT, "Mortice"), the AIM listed security and facilities management company based in India, today announces results for the period from its incorporation on 9 January 2008 to 31 March 2008.
These results relate to the period prior to Mortice listing on AIM which occurred on 15 May 2008 and includes the consolidated results of its subsidiaries Tenon Property Services Private Limited ("Tenon") and Peregrine Guarding Private Limited ("Peregrine") from 1 February 2008, since Mortice acquired Tenon and Tenon acquired Peregrine on 30 January 2008.
Commenting today, Manjit Rajain, Executive Chairman of Mortice Ltd said:
"I am pleased to report, that since this reporting period ended, the company has successfully listed on AIM and continued to trade very strongly. We have made significant progress in developing organically throughout India and remain very well positioned to expand overseas. Accordingly I hope to give shareholders a fuller update on the Group's progress when we report our Interim results in the next few months"
Extracts from the audited financial statements are attached below. The full version of the Annual Report and Accounts has been posted to shareholders and it will be available on the company website www.morticegroup.com
Notes to Editors
Mortice Limited, a company incorporated in Singapore, is the holding company of Tenon Property Services Private Limited, and the ultimate parent company of Peregrine Guarding Private Limited ("Peregrine"), the two operational companies of the Group which are based in India (together the "Group").
Peregrine has provided security services in India for 13 years, establishing a client base of over 450 customers and developing a strong pan-India presence providing manned guarding operations in the process. By 30 September 2007 the Peregrine Group operated in 51 locations in 19 out of the 28 Indian states and had clients in a range of sectors including information technology enabled services ("ITES"), telecoms, manufacturing, pharmaceutical, banking and healthcare.
Mortice intends to utilise the platform provided by the Peregrine Group to grow the Tenon business, to manage and provide project, property and facilities management services in the Indian market.
The Group has a strong management team with experience in setting-up, managing and delivering integrated facilities services to the Indian corporate real estate sector. The key objective of the reorganised Group is to provide integrated property services in India and the Directors believe that such services will enable the Company to provide total end-to-end management solutions to India's growing corporate real estate sector.
For further information please contact:
| Mortice Ltd | ||
| Manjit Rajain, Executive Chairman | Tel: +91 981 800 0011 | |
| Andrew Barker, Executive Director | Tel: +91 974 130 9401 | |
| Grant Thornton UK LLP | ||
| Fiona Owen | Tel: +44 207 383 5100 | |
| Jermyn Capital Partners PLC | ||
| Dharmesh Doshi | Tel: +44 207 399 2020 | |
| Pelham PR | ||
| Alex Walters / Charles Goodwin | Tel : +44 203 159 4399 |
Statement by the Executive Chairman, Mr Manjit Rajain
"It has been a privilege to build one of India's most successful security services corporations. Over the last 13 years, we have set very high benchmarks for delivery of security services in India. Our rapid growth, both financially and in terms of resource strength, is a testimonial to this growth.
The unmatched learning from this experience has inspired us to establish Mortice - to capitalize on the significant opportunity which exists in India, in particular, and Asia in general for high quality facilities-related services customized to local market conditions. Our promise of international standard solutions at locally relevant costs has been greeted with enthusiasm in the market. The results are already showing with customers moving their property and facilities management business from traditional multi-national service providers to Tenon. As our facilities services have grown, we have been delighted by the increasing speed at which new opportunities are arising. Most corporations in India are confident not just of the sound theory behind our model but also our credibility of having delivered similar high-quality, cost-efficient guarding solutions for over 13 years now through Peregrine. With the parallel continued growth of our guarding business, we are confident of generating significant value for our shareholders."
Statement by the Executive Director, and Group CEO Mr Andrew Barker
"As a Facilities Management ("FM") professional with over 30 years in the industry, 10 of them in Asia Pacific and 5 in India, I have seen diverse assignments in senior positions with service providers and with corporations. However, no opportunity has excited me as much as this current one: leading a team of strong FM professionals delivering services through a model that is completely customized to the requirements of the Indian market in particular and Asia in general. Added to this is the excitement of taking a successful, innovative security services business to the next level. We have been able to draw the top talent in the industry, both on FM and on security, because these individuals recognize that our service delivery model addresses inefficiencies inherent in the fragmented way in which services have traditionally been delivered. This early phase of Mortice has been spent in building a robust platform for the delivery of self-performance FM services across India and marketing our new product. The focus on developing our infrastructure has inspired confidence in our capability across potential customers, both indigenous and multinational corporations. Market feedback and a growing number of orders indicate that our business model has hit the right note and will meet with considerable success."
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
FINANCIAL STATEMENTS
FOR THE PERIOD FROM 9 JANUARY 2008
(DATE OF INCOPORATION) TO 31 MARCH 2008
BALANCE SHEETS AS AT 31 MARCH 2008
| Note | Group | Company | |||||
| US$ | US$ | ||||||
|
| |||||||
| NON-CURRENT ASSETS | |||||||
| Plant and equipment | 4 | 609,147 | - | ||||
| Investment in subsidiary | 5 | - | 394,675 | ||||
| Deferred tax asset | 6 | 165,870 | - | ||||
| 775,017 | 394,675 | ||||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | 7 | 405,009 | 5,028 | ||||
| Trade receivables | 8 | 3,690,329 | - | ||||
| Other receivables | 9 | 1,656,410 | 551,215 | ||||
| Inventories, at cost | 10 | 20,481 | - | ||||
| 5,772,229 | 556,243 | ||||||
| CURRENT LIABILITIES | |||||||
| Trade payables | 11 | 1,390,460 | - | ||||
| Other payables | 12 | 2,672,873 | 568,542 | ||||
| Finance lease | 13 | 43,029 | - | ||||
| Borrowings | 14 | 369,052 | - | ||||
| Provision for taxation | 423,517 | - | |||||
| 4,898,931 | 568,542 | ||||||
| NET CURRENT ASSETS/(LIABILITIES) | 873,298 | (12,299) | |||||
| NON-CURRENT LIABILITIES | |||||||
| Finance lease | 13 | (97,271) | - | ||||
| Bank overdraft | 7 | (200,389) | - | ||||
| Retirement benefit obligations | 15 | (92,916) | - | ||||
| Borrowings | 14 | (237,883) | - | ||||
| NET ASSETS | 1,019,856 | 382,376 | |||||
| SHAREHOLDERS' EQUITY | |||||||
| Share capital | 16 | 400,001 | 400,001 | ||||
| Reserves | 17 | 617,361 | (17,625) | ||||
| 1,017,362 | 382,376 | ||||||
| Minority interest | 18 | 2,494 | - | ||||
| TOTAL EQUITY | 1,019,856 | 382,376 | |||||
The annexed notes form an integral part of and should be read in conjunction with these financial statements
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
INCOME STATEMENTS
FOR THE PERIOD FROM 9 JANUARY 2008
(DATE OF INCORPORATION) TO 31 MARCH 2008
| Note | Group | Company | ||||
| US$ | US$ | |||||
| REVENUE | ||||||
| Services income | 3,390,490 | - | ||||
| Negative goodwill written back | 19 | 651,478 | - | |||
| Other income | 1,569 | - | ||||
| Total revenue | 4,043,537 | - | ||||
| COSTS AND EXPENSES | ||||||
| Services consumed | 20 | 2,713,594 | - | |||
| Depreciation of plant and equipment | 4 | 20,401 | - | |||
| Staff and related costs | 471,020 | - | ||||
| Operating expenses | 21 | 259,460 | 17,625 | |||
| Finance costs | 22 | 60,333 | - | |||
| Total costs and expenses | 3,524,808 | 17,625 | ||||
| PROFIT/(LOSS) BEFORE TAXATION | 23 | 518,729 | (17,625) | |||
| TAXATION | 24 | 113,905 | - | |||
| PROFIT/(LOSS) FOR THE PERIOD | 632,634 | (17,625) | ||||
| Attributable to: | ||||||
| Equity holders of the company | 632,642 | - | ||||
| Minority interest | 18 | (8) | - | |||
| 632,634 | (17,625) | |||||
The annexed notes form an integral part of and should be read in conjunction with these financial statements
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
STATEMENTS OF CHANGES IN EQUITY
FOR THE PERIOD FROM 9 JANUARY 2008
(DATE OF INCORPORATION) TO 31 MARCH 2008
| Attributable to equity holders of the group | |||||||||||
| Share capital | Retained profits/ (Accumulated loss) | Currency translation reserve | Total | Minority interest | Total | ||||||
| US$ | US$ | US$ | US$ | US$ | US$ | ||||||
| Group | |||||||||||
| Issuance of subscribers' shares | 400,001 | - | - | 400,001 | - | 400,001 | |||||
| Acquisition of subsidiaries | - | - | - | - | 2,502 | 2,502 | |||||
| Profit for the period | - | 632,642 | - | 632,642 | (8) | 632,634 | |||||
| Translation difference on consolidation | - | - | (15,281) | (15,281) | - | (15,281) | |||||
| Balance as at 31 March 2008 | 400,001 | 632,642 | (15,281) | 1,017,362 | 2,494 | 1,019,856 | |||||
| Company | |||||||||||
| Issuance of subscribers' shares | 400,001 | - | - | 400,001 | - | 400,001 | |||||
| Loss for the period | - | (17,625) | - | (17,625) | - | (17,625) | |||||
| Balance as at 31 March 2008 | 400,001 | (17,625) | - | 382,376 | - | 382,376 | |||||
The annexed notes form an integral part of and should be read in conjunction with these financial statements
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD FROM 9 JANUARY 2008
(DATE OF INCORPORATION) TO 31 MARCH 2008
| Note | US$ | |||
| Cash Flows From Operating Activities | ||||
| Profit before taxation | 518,729 | |||
| Adjustments for: | ||||
| Depreciation of plant and equipment | 4 | 20,401 | ||
| Negative goodwill written back | (651,478) | |||
| Interest expense | 60,333 | |||
| Cash flows from operations before changes in working capital | (52,015) | |||
| Working capital changes, excluding changes relating to cash: | ||||
| Trade receivables | (212,659) | |||
| Other receivables | (414,263) | |||
| Inventories, at cost | (20,481) | |||
| Trade payables | 80,885 | |||
| Other payables | (67,573) | |||
| Retirement benefit obligations | 14,346 | |||
| Cash absorbed by operations | (671,760) | |||
| Interest paid | (60,333) | |||
| Net cash absorbed by operating activities | (732,093) | |||
| Cash Flows From Investing Activities | ||||
| Acquisition of plant and equipment | (98,022) | |||
| Net cash outflow on acquisition of subsidiaries | (394,675) | |||
| Cash and cash equivalents in subsidiaries upon acquisition (see note on page 13) | 557,562 | |||
| Net cash generated from investing activities | 64,865 | |||
| Cash Flows From Financing Activities | ||||
| Issuance of share capital | 400,001 | |||
| Proceeds from finance lease | 140,300 | |||
| Proceeds from borrowings | 344,108 | |||
| Placement of pledged fixed deposit | (14,589) | |||
| Net cash generated from financing activities | 869,820 | |||
| Net increase in cash and cash equivalents | 202,592 | |||
| Unrealised exchange difference | (12,561) | |||
| Cash and cash equivalents at the beginning of the period | - | |||
| Cash and cash equivalents at the end of the period | 7 | 190,031 | ||
The annexed notes form an integral part of and should be read in conjunction with these financial statements
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENT (…CONT'D)
FOR THE PERIOD FROM 9 JANUARY 2008
(DATE OF INCORPORATION) TO 31 MARCH 2008
Note
On 31 January 2008, the company acquired subsidiary companies.
The effect of above acquisition on the cash flows of the group is as follows:
| US$ | |
| Summary of the effect of acquisition of subsidiaries | |
| Cash and cash equivalents | 557,562 |
| Trade receivables | 3,477,670 |
| Other receivables | 881,167 |
| Deferred tax asset | 2,499 |
| Plant and equipment | 539,352 |
| Trade payables | (1,309,575) |
| Retirement benefit obligations | (78,570) |
| Other payables | (2,758,686) |
| Long term borrowings | (262,827) |
| Minority shareholders interest | (2,539) |
| Currency translation adjustment | 100 |
| Net assets acquired | 1,046,153 |
| Negative goodwill on consolidation | (651,478) |
| Amount paid in consideration of acquisition | 394,675 |
| Cash and cash equivalents of acquired entity | 557,562 |
The annexed notes form an integral part of and should be read in conjunction with these financial statements
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL PERIOD FROM 9 JANAUARY 2008
(DATE OF INCORPORATION) TO 31 MARCH 2008
1. CORPORATE INFORMATION
Mortice Limited (Company Registration No.: 200800770W) is a public limited company, domiciled in Singapore. Subsequent to the financial year the company was listed on Alternate Investment Market (AIM) of London Stock Exchange, issuing 7,700,000 ordinary shares with proceeds amounting to US$9,730,120. The company's registered office is at 36 Robinson Road, #17-01 City House, Singapore 068877.
The principal activities of the group are to provide guarding services, facilities management, property management, fleet management and sale of safety equipment and their installation. There have been no significant changes in the nature of these activities during the financial period.
The financial statements of the group and of the company for the financial period from 9 January 2008 (date of incorporation) to 31 March 2008 were authorised and approved by the Board of Directors for issuance on 23 September 2008.
2. SIGNIFICANT ACCOUNTING POLICIES
a) Basis of preparation
The consolidated financial statements are prepared in accordance with Singapore Financial Reporting Standards ("FRS") as required by the Singapore Companies Act.
The consolidated financial statements, which are expressed in United States dollars are prepared in accordance with the historical cost convention, except as disclosed in the accounting policies.
In the current financial period, the group has adopted all the new and revised FRSs and Interpretations of FRS ("INT FRS") that are mandatory for application from that date. The adoption of these new and revised FRS and INT FRS have no material effect on the financial statements.
At the date of authorisation of these financial statements, the group has not applied those FRS and INT FRSs that have been issued but are effective only in next financial year. The group expect the adoption of the standards will have no financial effect on their financial statements in the period of initial application.
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
2. SIGNIFICANT ACCOUNTING POLICIES (…CONT'D)
b) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the company and its subsidiaries. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Acquisition of subsidiary is accounted for using the purchase method of accounting. The results of the subsidiaries' operations have been included in the consolidated financial statements from the effective date of acquisition or up to the effective date of disposal, as appropriate. All inter-company transactions and balances are eliminated on consolidation and the consolidated financial statements reflect external transactions only. The accounting periods of the subsidiaries are coterminous with that of the company. Negative goodwill represents the excess of the fair value of the subsidiaries net identifiable assets over the cost of acquisition at the date of acquisition. Negative goodwill is recognised immediately in the income statement.
In the company's financial statements, investment in subsidiaries are carried at cost less any impairment in net recoverable value that has been recognised in the income statement.
c) Foreign currency translation
The individual financial statements of each entity in the group are presented in the currency of the primary economic environment in which the entity operates (its functional currency). The consolidated financial statements of the group and financial statements of the company are presented in United States dollars, which is the functional currency of the company, and the presentation currency for the consolidated financial statements.
In preparing the financial statements of the individual entity, monetary assets and liabilities in foreign currencies are translated into United States dollars at rates of exchange closely approximate to those ruling at the balance sheet date and transactions in foreign currencies during the financial period are translated at rates ruling on transaction dates. Non-monetary items carried at fair values that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair values were determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
2. SIGNIFICANT ACCOUNTING POLICIES (…CONT'D)
c) Foreign currency translation (…cont'd)
Exchange differences arising on the settlement of monetary items, and on retranslation of monetary items are included in the income statement. Exchange differences arising on the retranslation of non-monetary items carried at fair values are included in the income statement for the year except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognised directly in equity. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in equity.
For consolidation purposes, the assets and liabilities of the foreign subsidiary company are translated at the rate of exchange ruling at the balance sheet date and income statement items are translated at the average rate. The effects of translation are taken directly to foreign currency translation reserves within equity. Such translation differences are recognised in income statement in the period in which its subsidiary is disposed of.
d) Plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and accumulated impairment loss. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to working condition for its intended use. Expenditure for additions, improvements and renewals are capitalised and expenditure for maintenance and repairs are charged to the income statement. When property, plant and equipment are sold or retired, their cost and accumulated depreciation and accumulated impairment losses (if any), are removed from the consolidated financial statements and any gain or loss resulting from their disposal is included in the income statement.
e) Depreciation of plant and equipment
Depreciation is calculated to write off the cost of plant and equipment by the straight-line method over their estimated useful lives. The estimated useful lives are as follows:
| Computers | 3 years |
| Office equipment | 5 years |
| Machinery | 5 years |
| Furniture and fittings | 5 years |
| Motor vehicles | 5 years |
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
2. SIGNIFICANT ACCOUNTING POLICIES (…CONT'D)
e) Depreciation of plant and equipment (…cont'd)
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease.
The residual values and useful lives of plant and equipment are reviewed, and adjusted as appropriate, at each balance sheet date. Fully depreciated property, plant and equipment are retained in the financial statements until they are no longer in use.
f) Investment in subsidiaries
Unquoted equity investments in subsidiaries are stated at cost less accumulated impairment losses. On disposal of investment in subsidiary, the difference between the net disposal proceeds and the carrying amount of the investment is taken to the income statement.
g) Cash and cash equivalents
Cash and cash equivalents consist of unsecured cash and bank balances, fixed deposit and bank overdraft.
h) Trade and other receivables
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method less allowance for impairment. An allowance for impairment of receivables is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of receivables. The amount of the allowance is the difference between the asset's carrying amount and estimated future cash flows. The amount of the allowance is recognised in the income statement.
i) Inventories
Inventories are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis. Cost includes all cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Net realisable value is the price at which the inventories can be realised in the normal course of business after allowing for the costs of realisation. Work in progress represents material and equipment under installation which are stated at cost. Cost includes all direct expenditure and all appropriate overheads.
j) Trade and other payables
Trade and other payables are initially measured at fair value, and subsequently measured at amortised cost, using the effective interest rate method.
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
2. SIGNIFICANT ACCOUNTING POLICIES (…CONT'D)
k) Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of direct issue costs.
l) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business, net of discounts and sales related taxes. The following specific recognition criteria must also be met before revenue is recognised:
(i) Income from services is recognised upon rendering of services.
(ii) Interest income is recognised on a time apportioned basis.
m) Income tax
Income tax expense is calculated on the basis of tax effect accounting, using the liability method and is applied to all significant temporary differences.
Income tax on the profit or loss for the period comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly to equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the period using tax rates enacted or substantially enacted at the balance sheet date.
Deferred income tax is provided, using the liability method, on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all taxable temporary differences.
Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unabsorbed capital allowances and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, carry-forward of unused tax credits and unused tax losses can be utilised.
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
2. SIGNIFICANT ACCOUNTING POLICIES (…CONT'D)
m) Income tax (…cont'd)
At each balance sheet date, the group re-assesses unrecognised deferred tax assets and the carrying amount of deferred tax assets. The group recognises a previously unrecognised deferred tax asset to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. The group conversely reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of the deferred tax asset to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the balance sheet date.
n) Impairment of assets
i. Non-financial assets
The carrying amounts of the group's assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amounts are estimated in order to determine the extent of the impairment loss (if any). An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The impairment loss is charged to the income statement unless it reverses a previous revaluation, credited to equity, in which case it is charged to equity.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the income statement, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
2. SIGNIFICANT ACCOUNTING POLICIES (…CONT'D)
n) Impairment of assets (…cont'd)
ii. Financial assets
The carrying amount of these assets is reduced through the use of an impairment allowance account which is calculated as the difference between the carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. When the asset becomes uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are recognised against the same line item in the income statement.
The allowance for impairment loss account is reduced through the income statement in a subsequent period when the amount of impairment loss decreases and the related decrease can be objectively measured.
o) Provisions
Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
p) Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets of the company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly to income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Lease of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged to income statement on a straight line basis over the term of the relevant lease.
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
2. SIGNIFICANT ACCOUNTING POLICIES (…CONT'D)
q) Employee benefits
Defined contribution plan
As required by law, the subsidiaries make pension contributions to a Provident Fund. Contributions are recognised as an expense in the income statements in the same period as the employment that gives rise to the contributions.
Employee leave entitlement
The company provides for encashment of leave entitlement as at year end for all the employees. Hence, all employee entitlements to annual leave are recognised when due.
Employee Gratuity
Employees are entitled to gratuity based on the years of service provided they serve on a continuous basis for a period of 5 years. The liability for the same is recognised on the basis of actuarial valuation by an independent actuary using the projected unit credit method. Under this method, the projected accrued benefit is calculated at the beginning of the year and again at the end of the year for each benefit that will accrue for all active members of the plan.
3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
The presentation of financial statements in conforming with FRS requires the use of certain critical accounting estimates and judgements in applying the accounting policies. These estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The following are the significant accounting estimates and judgements for preparation of financial statements:
(a) Plant and equipment
Management determines the estimated useful lives and residual values for the group's plant and equipment. Management will revise the depreciation charge where useful lives and residual values are different to previously estimated, or it will write off or write down technically obsolete or non-strategy assets that have been abandoned or sold.
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (…CONT'D)
(b) Income taxes
The Group and the Company have exposure to income taxes in countries where it operates. Significant judgement is involved in determining the Group's and the Company's provision for income taxes. The Group and the Company recognise liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provision in the financial year in which such determination is made. At 31 March 2008, the carrying amounts of the Group's and the Company's current income tax payable and deferred tax liabilities are disclosed in the balance sheets.
(c) Retirement benefit obligations
Management determines the assumptions used by an independent actuary to calculate the retirement benefit obligations (note 15).
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
4. PLANT AND EQUIPMENT
| Computers | Office equipment | Machinery | Furniture & Fittings | Motor Vehicles | Construction in Progress | Total | |||||||
| US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||
| Group | |||||||||||||
| Cost | |||||||||||||
| Additions on acquisition of subsidiaries | 41,660 | 18,454 | 42,481 | 330,885 | 117,712 | 16,232 | 567,424 | ||||||
| Additions | 15,505 | 663 | 2,894 | 1,104 | 77,856 | - | 98,022 | ||||||
| Currency translation difference | (605) | (268) | (616) | (4,801) | (1,708) | (236) | (8,234) | ||||||
| At 31 March 2008 | 56,560 | 18,849 | 44,759 | 327,188 | 193,860 | 15,996 | 657,212 | ||||||
| Accumulated depreciation | |||||||||||||
| Additions on acquisition of subsidiaries | 8,383 | 2,798 | 5,437 | 9,973 | 1,482 | - | 28,073 | ||||||
| Charge for the period | 2,355 | 766 | 1,530 | 10,630 | 5,120 | - | 20,401 | ||||||
| Currency translation difference | (122) | (41) | (79) | (145) | (22) | - | (409) | ||||||
| At 31 March 2008 | 10,616 | 3,523 | 6,888 | 20,458 | 6,580 | - | 48,065 | ||||||
| Net book value | |||||||||||||
| At 31 March 2008 | 45,944 | 15,326 | 37,871 | 306,730 | 187,280 | 15,996 | 609,147 |
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
4. PLANT AND EQUIPMENT (…CONT'D)
The group's plant and equipment as at 31 March 2008 include motor vehicles under finance lease with net book value of US$187,280.
5. INVESTMENT IN SUBSIDIARY
| Company | |
| US$ | |
| Unquoted equity investment - at cost | 394,675 |
The details of the subsidiaries are as follows:
| Name of Company | Country of incorporation | Principal activities | Financial Year End | Percentage of equity held by the company | Cost of Investment |
|
|
|
|
| US$ | |
| Direct subsidiary company | |||||
| Held by the company | |||||
|
|
|
|
| ||
| Tenon Property Services Pvt Ltd | India | Facilities & Property Management and Fleet Management Services | 31 March | 99.36% | 394,675 |
| (Tenon Property Services Pvt Ltd is subsidiary of Mortice Ltd) |
|
|
| ||
|
|
|
|
|
| |
| Sub-subsidiary company |
|
|
|
| |
| Held by subsidiary company |
|
|
|
| |
|
|
|
|
|
| |
| Peregrine Guarding Pvt Ltd. | India | Guarding, Safety and Security Services | 31 March | 100% | 377,783 |
| (Peregrine Guarding Pvt Ltd is a Subsidiary of Tenon Property Services Pvt Ltd) |
|
|
|
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
6. DEFERRED TAX ASSET
| Group | |
| US$ | |
| At the beginning of the period | - |
| Transfer from income statement | 165,870 |
| At the end of the period | 165,870 |
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
| At 9 January 2008 | Credit to profit or loss (Note 24) | At 31 March 2008 | |||
| US$ | US$ | US$ | |||
| Accelerated tax depreciation | - | 3,684 | 3,684 | ||
| Gratuity | - | (31,582) | (31,582) | ||
| Others | - | (8,892) | (8,892) | ||
| Tax losses carried forward | - | (79,281) | (129,042) | ||
| Unabsorbed capital allowances | - | (49,799) | (49,799) | ||
| - | (165,870) | (165,870) |
One of the subsidiary companies has unabsorbed tax losses and capital allowances amounting to approximately US$233,180 and US$146,468, respectively available for offsetting against future taxable income of the subsidiaries for the next 8 assessment years subject to conditions imposed by Indian Tax Act.
7. CASH AND CASH EQUIVALENTS
| Group | Company | ||
| US$ | US$ | ||
| Cash at bank | 191,193 | 5,028 | |
| Cash on hand | 186,233 | - | |
| Fixed deposits | 27,583 | - | |
| 405,009 | 5,028 |
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
7. CASH AND CASH EQUIVALENTS (…CONT'D)
The carrying amounts of cash and cash equivalents approximate their fair values and are denominated in the following currencies:
| Group | Company | ||
| US$ | US$ | ||
| Indian rupees | 399,981 | - | |
| United States dollars | 5,028 | 5,028 | |
| 405,009 | 5,028 |
The bank overdraft bears an interest ranging from 11% to 13% per annum. The bank overdraft is secured by pledge of trade receivables, inventories and plant and equipment.
For the purpose of the cash flow statement, the year end cash and cash equivalents comprised the following:
| Group | |||
| US$ | |||
| Cash at bank | 191,193 | ||
| Cash on hand | 186,233 | ||
| Fixed deposits | 27,583 | ||
| 405,009 | |||
| Less: | |||
| Bank overdraft | (200,389) | ||
| Pledged fixed deposits | (14,589) | ||
| 190,031 |
The company has pledged US$14,589 fixed deposit out of the above deposits as security for a bank guarantee obtained as disclosed in Note 26 to the financial statements.
8. TRADE RECEIVABLES
| Group | |||
| US$ | |||
| Third parties | 3,704,615 | ||
| Less : Allowance for doubtful debts | (14,286) | ||
| 3,690,329 |
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
8. TRADE RECEIVABLES (…CONT'D)
The group's trade receivables are denominated in Indian rupees.
Trade receivables are recognised at their original invoiced amounts which represent their fair values on initial recognition. The trade receivables are considered to be of short duration and are not discounted and the carrying values are assumed to approximate their fair values.
Trade receivables of one of the subsidiaries amounting to US$3,671,483 have been pledged as security for bank overdraft.
9. OTHER RECEIVABLES
| Group | Company | ||
| US$ | US$ | ||
|
| |||
| Deposits | 537,942 | - | |
| Prepayments | 551,215 | 551,215 | |
| Advances - third parties | 510,662 | - | |
| Advances - related parties | 53,921 | - | |
| Other debtors | 2,670 | - | |
| 1,656,410 | 551,215 |
Prepayments include fund raising cost incurred by the group for Initial Public Offering and listing on Alternate Investment Market (AIM) of London Stock Exchange (LSE), which took place subsequently on 15 May 2008.
The carrying amounts of other receivables approximate their fair values. The group's and company's other receivables are denominated in the following currencies:
| Group | Company | ||
| US$ | US$ | ||
| Indian rupees | 1,105,195 | - | |
| United States dollars | 551,215 | 551,215 | |
| 1,656,410 | 551,215 |
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
10. INVENTORIES, AT COST
| Group | |
| US$ | |
| Finished Goods | 2,290 |
| Work in Progress | 18,191 |
| 20,481 |
Work in progress represents material and equipment under installation at client site.
11. TRADE PAYABLES
The group's trade payables are denominated in Indian rupees.
Trade payables are recognised at their original invoiced amounts which represent their fair values on initial recognition. Trade payables are considered to be of short duration and are not discounted and the carrying values are assumed to approximate their fair values.
12. OTHER PAYABLES
| | Group | | Company |
| | US$ | | US$ |
| | | | |
| Accruals for operating expenses | 807,861 | | 17,327 |
| Duties payable | 1,505,860 | | - |
| Other payables – related parties | 359,152 | | 551,215 |
| | 2,672,873 | | 568,542 |
The carrying amounts of other payables approximate their fair values and are denominated in the following currencies:
| Group | Company | ||
| US$ | US$ | ||
| Indian rupees | 2,299,222 | - | |
| United States dollars | 373,651 | 568,542 | |
| 2,672,873 | 568,542 |
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
13. FINANCE LEASE
| Group | |
| US$ | |
|
| |
| Due within one year | 59,106 |
| Due within one to five years | 110,346 |
| 169,452 | |
| Finance charge allocated to future periods | (29,152) |
| 140,300 | |
| Representing finance lease liabilities: | |
| Current | 43,029 |
| Non-current | 97,271 |
| 140,300 |
The carrying amounts of the non-current portion of finance lease obligations approximate their fair values. The finance lease obligations are denominated in Indian rupees. The average floating rate is at 13.28% per annum.
The group's obligations under finance leases are secured by the lessors' title to the leased assets (Note 4).
14. BORROWINGS
| Group | ||
| US$ | ||
| Within one year | 369,052 | |
| Within two to five years | 237,883 | |
| 606,935 |
The group's borrowings are denominated in Indian rupees.
The carrying amounts of borrowings approximate their fair values. The borrowings are unsecured, subject to interest at rates ranging from 12 % to 21% per annum
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
15. RETIREMENT BENEFIT OBLIGATIONS
In accordance with applicable Indian laws, the group provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan") covering eligible employees calculated by an independent actuary. The Gratuity Plan provides for a lump sum payment to vested employees on retirement, death, incapacitation or termination of employment of amounts that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation by the company. The group has not funded its obligation under the gratuity benefit plan.
For determination of the Gratuity the following actuarial assumptions were used:
Economic assumptions:-The principal Assumptions are the discount rate and salary growth rate. The discount rate is generally based upon the market yield available on government bonds at the accounting date with a term that matches that of the liabilities and the salary growth rate takes account of inflation seniority promotion and other relevant factors on long term basis
Demographic assumptions
| Group | ||
| Retirement age | 58 years | |
| Mortality table | LIC (94-96) duly modified | |
| Attrition rate | 55% | |
| Discount rate | 8% | |
| Rate of increase in compensation levels | 5% |
16. SHARE CAPITAL
| Company | ||
| US$ | ||
| Issued and fully paid | ||
| 40,000,001 ordinary shares | 400,001 |
At the date of incorporation, the company issued 40,000,001 ordinary share for cash as initial share capital.
The holder of ordinary shares is entitled to receive dividends as declared from time to time and is entitled to one vote per share at meeting of the company. All shares rank equally with regard to the company's residual assets.
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
17. RESERVES
| Group | Company | ||
| US$ | US$ | ||
| Currency translation reserve | |||
| Balance at the beginning of the period | - | - | |
| Exchange differences on consolidation | (15,281) | - | |
| Balance at the end of the period | (15,281) | - | |
| Retained profits | |||
| Balance at the beginning of the period | - | - | |
| Profit/(loss) for the period | 632,642 | (17,625) | |
| Balance at the end of the period | 632,642 | (17,625) | |
|
| |||
| Total reserves | 617,361 | (17,625) |
18. MINORITY INTEREST
| Group | |||
| US$ | |||
| Cost of investment | 2,502 | ||
| Loss for the period | (8) | ||
| Balance at the end of the period | 2,494 |
19. NEGATIVE GOODWILL WRITTEN BACK
Negative goodwill represents the excess of the fair value of the subsidiaries net identifiable assets over the cost of acquisition at the date of acquisition as result of a bargain purchase.
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
20. SERVICES CONSUMED
| Group | |||
| US$ | |||
| Purchases consumed | 15,759 | ||
| Bonuses | 93,351 | ||
| Contribution to provident fund | 241,744 | ||
| Wages | 2,289,047 | ||
| Others | 73,693 | ||
| 2,713,594 |
21. OPERATING EXPENSES
| Group | Company | ||
| US$ | US$ | ||
| Advertisement | 5,172 | - | |
| Legal and professional fees | 9,443 | 2,827 | |
| Fringe benefit expense | 18,240 | - | |
| Printing and stationary | 7,846 | - | |
| Rental | 60,211 | - | |
| Repair and maintenance | 27,846 | - | |
| Telephone and fax | 14,372 | - | |
| Travelling expenses | 55,605 | - | |
| Others | 60,725 | 14,500 | |
| 259,460 | 17,327 |
22. FINANCE COSTS
| Group | |||
| US$ | |||
| Interest on bank overdraft | 50,970 | ||
| Interest on term loan | 3,737 | ||
| Interest on finance lease | 3,423 | ||
| Others | 2,203 | ||
| 60,333 |
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
23. PROFIT/(LOSS) BEFORE TAXATION
Profit/(loss) before taxation is arrived at after charging:
| Group | |||
| US$ | |||
| Staff pension contributions | 176,579 | ||
| Directors' remuneration | 156,254 | ||
| Accommodation and office rental | 60,210 | ||
| Rental of office equipment | 3,760 |
24. TAXATION
| Group | Company | ||
| US$ | US$ | ||
| Current year taxation: | |||
| - Singapore taxation | - | - | |
| - Foreign taxation | 51,965 | - | |
| Deferred tax benefit (Note 6) | (165,870) | - | |
| (113,905) | - |
The reconciliation between tax expense/(benefit) and the accounting profit/(loss) multiplied by the applicable tax rates is as follows:
| Group | Company | ||
| US$ | US$ | ||
| Accounting profit/(loss) | 518,729 | (17,625) | |
| Income tax expense/(benefit) at applicable rate | 93,371 | (3,173) | |
| Non taxable income | (135,516) | - | |
| Non allowable expenses | 11,165 | 3,173 | |
| Difference in tax rate | 4,889 | - | |
| Accelerated tax depreciation | 1,950 | - | |
| Gratuity | (16,720) | - | |
| Tax losses carried forward | (41,972) | - | |
| Unabsorbed capital allowances | (26,364) | - | |
| Others | (4,708) | - | |
| (113,905) | - |
One of the subsidiary companies has unabsorbed tax losses and capital allowances amounting to approximately US$233,180 and US$146,468, respectively available for offsetting against future taxable income of the subsidiaries for the next 8 assessment years subject to conditions imposed by Indian Tax Act.
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
25. OPERATING LEASE COMMITMENTS
At the balance sheet date, the group and the company had commitments in respect of operating leases as follows:
| Group | |||
| US$ | |||
| Within one year | 186,532 | ||
| Within two to five years | 43,989 | ||
| 230,521 |
Operating lease commitments represent rental payable by the group for offices and guest houses. The leases have varying terms and renewal rights.
26. OTHER COMMITMENTS
At the balance sheet date, the company had obtained a bank guarantee totalling US$67,382 in favour of third parties with respect to the company's activities. The bank guarantee is secured by fixed deposits amounting to US$14,589, pledge of trade receivables, inventories and plant and equipment.
27. RELATED PARTY TRANSACTIONS
An entity or individual is considered a related party of the group for the purpose of the financial statements if:
(i) it possesses the ability (directly or indirectly) to control or exercise significant influence over the financial and operating decisions of the group or vice versa; or
(ii) it is subject to common control or common significant influence.
The following transactions are the significant related party transactions entered into by the company and the group on terms agreed between the parties:
| Group | |
| US$ | |
| Assets purchased from a shareholder | 5,629 |
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
27. RELATED PARTY TRANSACTIONS (…CONT'D)
Compensation of directors and key management personnel
The remuneration of directors and other members of key management of the group during the financial period is as follows:
| Group | |
| US$ | |
| Short-term benefits | 156,254 |
28. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
a) Liquidity risk
The group maintains sufficient reserves of cash and available bank credit facilities to meet its liquidity requirement at all times.
b) Foreign currency risk
The group is exposed to a certain degree of foreign exchange risk arising from their transactions denominated in Indian rupees. However, the company does not use any hedging instruments to protect against the volatility associated with foreign currency transactions, other assets and liabilities created in the normal course of business.
c) Credit risk
Credit risk is managed through trading with majority customers with good credit history, performing credit checks and monitoring procedures. The carrying amount of each financial asset in the balance sheet represents the group's maximum exposure to credit risk.
d) Interest rate risk
The group's exposure to market risk for changes in interest rates is disclosed further in note 7, 13 and 14 to the financial statements.
MORTICE LIMITED
(Incorporated in Singapore)
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD FROM 9 JANUARY 2008 (DATE OF INCORPORATION) TO 31 MARCH 2008 (…CONT'D)
28. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (…CONT'D)
e) Fair values
The carrying amounts of cash and cash equivalents, trade and other receivables, related party balances, trade and other payables, current portion of finance lease and borrowings approximate their fair values due to their short-term nature.
29. SUBSEQUENT EVENTS
Subsequent to the financial period the company was listed on Alternate Investment Market (AIM) of London Stock Exchange (LSE), issuing 7,700,000 ordinary shares with total proceeds amounting to US$9,730,120.
Upon admission to AIM of LSE, the Company has adopted a share option scheme for 2,800,000 ordinary shares of the company, of which 1,600,000 options (3.4 per cent of the Ordinary Shares at Admission) are alloted and granted to Andrew Barker and 1,200,000 options (2.5 per cent of the Ordinary Shares at Admission) are allotted and granted to Vijayendra Babji, both of which are performance related and exercisable three years after Admission at the Placing Price.
30. COMPARATIVE FIGURES
No comparative figures are available as this is the group's and the company's first set of` financial statements.