rnsitem

REG - Mortice Limited - Interim Results
Released: 21/12/2009

 
Click for Link:
http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20091221:nRSU4819Ea
RNS Number : 4819E
Mortice Limited
21 December 2009
 
 
21 December 2009
MORTICE LIMITED
Interim Results
Mortice Ltd (AIM:MORT) ("Mortice" or the "Company")), the AIM listed security and facilities management company based in
India, today announces its interim results for six months ended 30 September 2009.
 Operational highlights 
 
* 
Acquisition of Rotopower Projects Private Limited ("Rotopower") and integration into the Company's facilities management
business
* 
Appointment of key senior professionals to further the Group's strategic objectives including: 
 
* 
Chief Executive Officer for the Company
* 
Managing Director for Peregrine Guarding Private Limited ("Peregrine"), 
 
* 
Post the period under review, the Company has won 84 new contracts across its subsidiaries
* 
Company now provides services in 29 of 35 states in India 
 
Facilities Management Services 
 
* 
20 new contracts for facilities management services signed post the period under review 
* 
Total area of approximately eight million square feet area under management
* 
Expanded operations to new territories including all states of Eastern India. 
 
Guarding Services 
 
* 
 64 new Guarding contracts signed post period under review 
 
Financial highlights 
 
* 
Revenues increased to US$ 13.64 million, an increase of 16.0% (30 September 2008: US$ 11.69 m)
* 
Guarding Revenues income increased to US$ 11.03 million (30 September 2008: US$ 10.95 million)
* 
Facilities Management Revenues US$ 2.31million (30 September 2008: US$ 0.40m) an increase of 477.5%
* 
Gross Margin of 17.0% 
 
In the six months ended 30 September 2009, the Company's revenues have grown 16% in USD terms. Considering the impact of
the global economic slowdown which has led to cautious spending by our customers, the Directors believe this growth in
revenues is commendable. The revenue growth, when analysed in Indian rupee terms, has been 32.3%, which is a reflection of
the weakening of the Indian Rupee against the US dollar during the period under review. It is important to note that all
the Company's revenues are received in INR along with almost all expenses and hence the Company doers not  incur any
capital loss due to currency fluctuations.
Manjit Rajain, Executive Chairman, commented:
"We have achieved significant progress in the marketplace and our differentiated model of Facilities Management ("FM") is
creating waves in the market. Our first acquisition, Rotopower has successfully been integrated into the Group and has had
a positive profit contribution. Following the first six months post the acquisition, we have not had any customer
attrition, nor is any loss of key management and growth picking up. The financial loss reported is mainly on account of the
investments which have been made in the FM business. After the recent announcement by Indian Government confirming GDP
growth of 7.9%, customer sentiment is improving and the Directors believe that Mortice will be a key beneficiary of a
rebound of the positive sentiment in the marketplace."
The Unaudited Condensed Consolidated Interim Financial statements of the Company for the period ended 30 September 2009 are
presented below and a full version of these will be available on the Company's website www.morticegroup.com.
For further information please contact: 
 
 Mortice Ltd                                                                           
 Manjit Rajain, Executive Chairman           Tel: +91 981 800 0011                     
 Vaibhav Dayal, Group CEO                    Tel: +91 981 867 0003                     
                                                                                       
 Grant Thornton Corporate Finance (NOMAD)                                              
 Fiona Kindness / Robert Beenstock           Tel: +44 207 383 5100                     
                                                                                       
 Seymour Pierce Ltd (Broker)                                                           
 Sam Tully / Nandita Sahgal                  Tel: +44 207 107 8000                     
                                                                                       
 Pelham PR                                                                             
 Archie Berens                               Tel : +44 207 3371509 /  +44 7802 442486  
 
 
Chairman's Statement
Despite the recessionary global economic environment in the first six months of the financial year 2009, Mortice has had an
eventful year, which included winning a contract for providing a complicated and diverse range of FM services for one of
the largest financial management companies in the world, securing as a client one of the largest telecom companies in India
for the provision of Guarding services and the acquisition of an Indian FM company based in Delhi. During the period the
Company's revenues for each of its business segments grew significantly. However, the Company's bottom-line performance was
impacted by the recessionary environment, putting pricing pressure on the Guarding business. Continued investment into the
FM business was also a factor. An increase of 16% in revenues in US$ terms and 32.3% in Indian Rupee terms shows that the
market regards Mortice and its group companies at the forefront of guarding and FM business and believes in the
differentiated service offerings we provide. Mortice has built its business over the years with a strong focus on retaining
existing customers, in addition to winning new clients. Given the general recessionary economic environment and the impact
on our customer's own businesses, we supported them by absorbing the pricing pressures. We believe this is a short term
investment we have made in building long term customer relationships which will yield benefits to us in times to come. 
Our investment in acquiring Rotopower is exactly on target. After raising money from AIM as part of our initial flotation,
we patiently waited for a whole year to identify and acquire the right company. We acquired Rotopower, which has an
excellent competency in engineering services and is a company retained by close to 100 customers, including several of the
largest brands in the country. Rotopower today makes a positive contribution to bottom-line of Mortice and has been
integrated well into the Company. Six months after its acquisition, Rotopower has not lost any senior management nor any
key clients as a result of acquisition. Tenon and Rotopower are working together closely and creating more opportunities
for the Company in the marketplace. Additionally, cross-selling of services between Rotopower, Tenon and Peregrine has now
commenced and the Director's believe this will bring out further synergies in the near future.
 
The Company has introduced excellent leadership at the top level with Mr. Vaibhav Dayal taking over as Chief Executive
Officer for the Company. He brings with him an outstanding track record of 18 years including global experience of close to
a decade in leading services businesses. Vaibhav is steering the business in the right direction by bringing the right
combination of energy, management practices and scalability into all of our businesses. Our flagship business Peregrine is
now headed by Brigadier Rajan Oberoi as Managing Director of Peregrine. Brigadier Oberoi is celebrated officer of the
Indian Army with strong understanding of security functions. Brigadier Oberoi led the formation in 1985 of the Black Cats,
a special response unit of the National Security Guards primarily utilised for counter-terrorism activities, which he went
on to lead as Force Commander. Brig. Oberoi holds several military awards from his time in service including the
prestigious President's Police Medal for Gallantry and a Vishisht Seva Medal .
Today the world is watching India making rapid strides in its economic growth. Recently, the Indian government has declared
GDP growth rate of 7.9% giving a strong signal to customer sentiment and an unlocking of spending that had previously been
held back. The Directors believe that, with the Indian economy showing signs of recovery coupled with an increase in the
deal flow, the long term prospects of the Company remain positive.
  
Unaudited Condensed Consolidated Statements of Financial Position
(All amounts in United States Dollars, unless otherwise stated) 
 
                                                       Notes  As at 30 September 2009  As at 31 March 2009  As at 30 September 2008  
 ASSETS                                                                                                                              
 Non current assets                                                                                                                  
 Goodwill                                              5      1,056,341                -                    -                        
 Other intangible assets                                      459,871                  13,631               -                        
 Property, plant and equipment (net)                          934,174                  663,532              619,628                  
 Deferred tax assets (net)                                    908,482                  618,853              405,183                  
 Restricted cash                                              175,234                  111,933              23,285                   
 Other assets                                                 72,231                   88,897               190,764                  
 Total non- current assets                                    3,606,333                1,496,846            1,238,860                
 Current assets                                                                                                                      
 Inventories                                                  72,463                   67,262               9,805                    
 Trade receivables (net)                                      6,271,354                4,630,997            4,557,232                
 Advance taxes                                                488,542                  357,819              -                        
 Related party receivables                                    668,112                  667,152              1,896,319                
 Other current assets                                         710,889                  592,555              384,628                  
 Cash and cash equivalents                                    1,035,028                3,253,140            4,055,614                
 Total current assets                                         9,246,388                9,568,925            10,903,598               
 Total assets                                                 12,852,721               11,065,771           12,142,458               
 EQUITY AND LIABILITIES                                                                                                              
 Equity                                                                                                                              
 Equity attributable to owners of the Company                                                                                        
 Share capital                                                9,555,312                9,555,312            9,558,455                
 Accumulated losses                                           (2,814,508)              (2,294,341)          (1,225,230)              
 Stock compensation reserve                                                                                 23,608                   
 Currency translation reserve                                 (811,633)                (1,076,249)          (693,192)                
 Minority interest                                                                                          922                      
 Total equity                                                 5,929,171                6,184,722            7,664,563                
 Liabilities                                                                                                                         
 Non-current liabilities                                                                                                             
 Retirement benefit obligations                               223,734                  124,958              117,657                  
 Finance lease obligations, excluding current portion         136,896                  78,812               94,684                   
 Long-term borrowings, excluding current portion              57,754                   151,820              181,759                  
 Deferred consideration                                       260,773                  -                                             
 Total non-current liabilities                                679,157                  355,590              394,100                  
 Current liabilities                                                                                                                 
 Trade payables and other payables                            4,506,079                3,081,586            2,864,456                
 Bank overdraft                                               1,542,695                1,241,451            -                        
 Related party payables                                       11,289                   51,444               1,046,445                
 Current portion of finance lease obligations                 86,703                   60,760               53,221                   
 Current portion of long term borrowings                      97,627                   90,218               82,575                   
 Provision for taxation                                                                                     37,098                   
 Total current liabilities                                    6,244,393                4,525,459            4,083,795                
 Total liabilities                                            6,923,550                4,881,049            4,477,895                
 Total equity and liabilities                                 12,852,721               11,065,771           12,142,458               
 
 
Unaudited Condensed Consolidated Income Statements
(All amounts in United States Dollars, unless otherwise stated) 
 
                                  For six months ended30 September 2009  For six months ended30 September 2008  
 Revenues                                                                                                       
 Service income                   13,574,300                             11,620,473                             
 Other income                     66,100                                 71,701                                 
 Total                            13,640,400                             11,692,174                             
                                                                                                                
 Expenses                                                                                                       
 Material cost                    220,434                                181,760                                
 Employee costs                   12,644,765                             10,790,186                             
 Listing expenses                 -                                      1,428,393                              
 Depreciation and amortisation    171,551                                75,467                                 
 Finance costs                    215,123                                71,700                                 
 Other expenses                   1,053,121                              1,016,836                              
 Total                            14,304,994                             13,564,342                             
                                                                                                                
                                                                                                                
 Loss before tax                  (664,594)                              (1,872,168)                            
                                                                                                                
 Income tax credit                (144,427)                              (12,725)                               
                                                                                                                
 Loss for the period              (520,167)                              (1,859,443)                            
                                                                                                                
 Loss attributable to                                                                                           
 - Owners of the Company          (520,167)                              (1,857,871)                            
 - Minority share in losses       -                                      (1,572)                                
                                                                                                                
 Loss per share                                                                                                 
 Basic and diluted                (0.01)                                 (0.04)                                 
 
 
(The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements)
Unaudited Condensed Consolidated Statements of Comprehensive Income
(All amounts in United States Dollars, unless otherwise stated) 
 
                                                           Six months ended 30 September 2009  Six months ended 30 September 2008  
                                                                                                                                   
 Loss for the period                                       (520,167)                           (1,859,443)                         
                                                                                                                                   
 Exchange differences on translating foreign operations    264,616                             (677,911)                           
                                                                                                                                   
 Total comprehensive loss for the period                   (255,551)                           (2,537,354)                         
                                                                                                                                   
 Loss attributable to                                                                                                              
 - Owners of the Company                                   (255,551)                           (2,535,782)                         
 - Minority share in losses                                -                                   (1,572)                             
                                                                                                                                   
 
 
(The accompanying notes are an integral part of these unaudited condensed consolidated
 interim financial statements)
Unaudited Condensed Consolidated Statements of Changes in Equity 
 (All amounts in United States Dollars, unless otherwise stated) 
 
                                                            Equity attributable to shareholders of the Company  Total stockholders' equity  
                                                            Share capital                                       Stock compensation reserve  Currency translation reserve  Retained earning/ (accumulated losses)  Minority interest           
 No. of shares                                              Amount                                              
 Balance as at 1 April 2008                                 40,000,001                                          400,001                                                   (15,281)                                632,641            2,494    1,019,855    
 New shares issued                                          7,700,000                                           9,730,120                                                                                                                     9,730,120    
 Costs of new shares issued                                                                                     (571,666)                                                                                                                     (571,666)    
 Stock compensation reserve                                                                                                                 23,608                                                                                            23,608       
 Transactions with owners                                                                                       9,558,455                   23,608                        (15,281)                                632,641            2,494    10,201,917   
 Loss for the period                                                                                                                                                                                              (1,857,871)        (1,572)  (1,859,443)  
 Other comprehensive income:                                                                                                                                                                                                                               
 Exchange differences on translation of foreign operations                                                                                                                (677,911)                                                           (677,911)    
 Total comprehensive income for the period                  -                                                   -                           -                             (677,911)                               (1,857,871)        (1,572)  (2,537,354)  
 Balance as at 30 September 2008                            47,700,001                                          9,558,455                   23,608                        (693,192)                               (1,225,230)        922      7,664,563    
                                                                                                                                                                                                                                                           
 Balance as at 1 April 2009                                 47,700,001                                          9,555,312                   -                             (1,076,249)                             (2,294,341)        -        6,184,722    
 Loss for the period                                                                                                                                                                                              (520,167)                   (520,167)    
 Other comprehensive income:                                                                                                                                                                                                                               
 Exchange differences on translation of foreign operations                                                                                                                264,616                                                             264,616      
 Total comprehensive income for the period                                                                      -                           -                             264,616                                 (520,167)          -        (255,551)    
 Balance as at 30 September 2009                            47,700,001                                          9,555,312                   -                             (811,633)                               (2,814,508)        -        5,929,171    
 
 
(The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements)
Unaudited Condensed Consolidated Statements of Cash Flows
(All amounts in United States Dollars, unless otherwise stated) 
 
                                                                 For six months ended30 September 2009  For six months ended30 September 2008  
                                                                                                                                               
 (A) Cash flow from operating activities                                                                                                       
 Loss before tax                                                 (664,594)                              (1,872,168)                            
 Adjustments:                                                                                                                                  
 Depreciation and amortisation                                   171,551                                75,467                                 
 Employee stock option expense                                   -                                      23,608                                 
 Interest income                                                 (23,773)                               -                                      
 Interest expense                                                152,779                                71,700                                 
 Provision for doubtful debts                                    103,896                                45,214                                 
                                                                 (260,141)                              (1,656,179)                            
 Changes in operating assets and liabilities                                                                                                   
 Restricted cash                                                 (24,005)                               (8,696)                                
 Trade receivable, other assets and related party receivables    (316,747)                              (2,054,194)                            
 Inventory                                                       7,928                                  10,676                                 
 Trade payables, other liabilities and related party payables    550,270                                (127,113)                              
                                                                 (42,695)                               (3,835,506)                            
 Taxes paid                                                      (360,409)                              (245,230)                              
 Net cash used in operating activities                           (403,104)                              (4,080,736)                            
                                                                                                                                               
 (B) Cash flow from investing activities                                                                                                       
 Net cash outflow on acquisition                                 (1,729,421)                            -                                      
 Payments for purchase of property, plant and equipment          (308,079)                              (201,807)                              
 Proceeds from sale of property, plant and equipment             -                                      28,318                                 
 Interest received                                               50,832                                 -                                      
 Net cash used in investing activities                           (1,986,668)                            (173,489)                              
                                                                                                                                               
 (C ) Cash flows from financing activities                                                                                                     
 Proceeds from issue of share capital                            -                                      9,158,454                              
 Proceeds from long term borrowings                              44,058                                 73,339                                 
 Repayment of long term borrowings                               (75,927)                               (408,335)                              
 Proceeds from/ (repayment) of bank overdraft                    223,715                                (200,389)                              
 Interest paid                                                   (152,950)                              (72,278)                               
 Net cash provided by financing activities                       38,896                                 8,550,791                              
 Net (decrease) / increase in cash and cash equivalents          (2,350,876)                            4,296,556                              
 Cash and cash equivalents at the beginning of the period        3,253,140                              390,420                                
 Effect of change in exchange rate on cash and cash equivalents  132,764                                (631,372)                              
 Cash and cash equivalents at the end of the period              1,035,028                                  4,055,614                         
                                                                                                                                               
 
 
(The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements) 
  Notes to Unaudited Condensed Consolidated Interim Financial Statements
(All amounts in United States Dollars, unless otherwise stated)
1.    INTRODUCTION
Mortice Limited ('the Company' or 'Mortice') was incorporated on 9 January 2008 as a public limited company in the Republic
of Singapore. The Company's registered office is situated at 36 Robinson Road, #17-01 City House, Singapore 068877. 
The Company was listed on the Alternative Investment Market (AIM) of the London Stock Exchange on 15 May 2008. The Company
along with its subsidiaries (hereinafter, together referred to as 'the Group') are engaged in providing guarding services,
facilities management services, mechanical and engineering maintenance services and sale of safety equipment and their
installation. The Group's operations are spread across India. The various entities comprising the Group have been defined
in Note 2 below.
These unaudited condensed consolidated financial statements were approved by the Board on 19 Dec 2009.
2.    BASIS OF PREPARATION
These Condensed Consolidated Interim Financial Statements are for the six months ended 30 September 2009. They have been
prepared in accordance with IAS 34 Interim Financial Reporting as developed and published by the International Accounting
Standards Board ('IASB'), on a going concern basis. They do not include all of the information required in annual financial
statements in accordance with IFRS, and should be read in conjunction with the consolidated financial statements of the
Group for the year ended 31 March 2009.
The functional currency of the entities within the Group (other than the Company) is Indian Rupees (INR). The Company has a
functional currency of United States Dollars ('USD'). The group's management has chosen to present the consolidated
financial information in USD, the functional currency of the Company. 
The subsidiaries which consolidate under Mortice comprise the entities listed below: 
 
 Name of the entity                                                      Country of Incorporation  Effective Group Shareholding (%)  
 Tenon Property Services Private Limited ('Tenon Property')              India                     99.48                             
 Peregrine Guarding Private Limited ('PGPL')                             India                     99.48                             
 Tenon Support Services Private Limited ('Tenon Support')                India                     99.48                             
 Tenon Project Services Private Limited ('Tenon Project')                India                     99.48                             
 Peregrine Protection Services Private Limited ('Peregrine Protection')  India                     99.48                             
 Roto Power Projects Private Limited ('Roto')                            India                     99.48                             
 
 
One new entity, Roto Power Projects Private Limited, was acquired by the Group during the six months ended 30 September
2009. Details of the business combination transaction have been specified in Note 4 below. 
All inter-company transactions and balances are eliminated on consolidation and the unaudited condensed consolidated
interim financial statements reflect external transactions only. The accounting periods of the subsidiaries are coterminous
with that of the Company.
Previous period's amounts have been regrouped/ reclassified, wherever considered necessary to make them comparable with
those of the current period.
3.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Except as described below, the accounting policies applied by the Group in these condensed consolidated interim financial
statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended
31 March 2009.
Changes in accounting policy
Presentation of financial statements 
The adoption of IAS 1 (Revised 2007) makes certain changes to the format and titles of the primary financial statements and
to the presentation of some items within these statements. It also gives rise to additional disclosures. The measurement
and recognition of the Group's assets, liabilities, income and expenses is unchanged. However, some items that were
recognised directly in equity are now recognised in other comprehensive income. IAS 1 affects the presentation of owner
changes in equity and introduces a 'Statement of comprehensive income'. Further, a 'Statement of changes in equity' is now
presented as a primary statement.
Determination and presentation of operating segments
The adoption of IFRS 8 has not affected the identified operating segments for the Group. However, reported segment results
are now based on internal management reporting information that is regularly reviewed by the chief operating decision
makers i.e. Group's Chief Executive Officer and Chairman. In the previous annual financial statements, segments were
identified by reference to the dominant source and nature of the Group's risks and returns. 
Accounting policies for new transactions and events
Intangible assets
In the business combination transaction, Customer relationship qualifies for recognition as an intangible asset (refer note
4). The accounting policy for the same is as under:
Intangible assets are accounted for using the cost model whereby capitalised costs are amortised on a straight line basis
over their estimated useful lives, as these assets are considered finite. Residual values and useful lives are reviewed at
each reporting date. In addition, they are subject to impairment testing.
4.    BUSINESS COMBINATION
On 30 June 2009 the Group, through one of its entities, Tenon Property acquired 100% of the issued share capital of Roto
Power Projects Private Limited, a private limited company incorporated in India. Roto is engaged in providing mechanical
and engineering maintenance services in India. 
The Group has acquired Roto for a consideration of USD 2.09 million. As consideration for the Roto acquisition, Tenon
Property has made an upfront payment of USD 1.78 million and there is balance consideration of US$0.32 million payable on
30 June 2011.
The total cost of acquisition was as below. 
 
 Particulars                                                              
 Upfront consideration in cash                                 1,778,171  
 Fair value of deferred consideration payable on 30 June 2011  256,464    
 Other incidental expenses                                     59,460     
 Total fair value of purchase consideration                    2,094,095  
 
 
The allocation of the purchase price to the assets and liabilities of Roto has been determined only provisionally as at 30
September 2009 as the management is currently in the process of identifying other intangibles, if any. The amounts
provisionally recognised for each class of the acquiree's assets and liabilities at the acquisition date are as follows: 
 
 Particulars                                                                                    Pre-acquisition carrying amount  Adjustments  Provisional fair value at acquisition date  
 Assets                                                                                                                                                                                   
 - Intangible assets recognised separately from goodwill, on account of customer relationships  -                                494,460      494,460                                     
 - Property, plant and equipment                                                                49,912                           -            49,912                                      
 - Trade receivables                                                                            1,144,063                        -            1,144,063                                   
 - Cash and cash equivalents                                                                    143,301                          -            143,301                                     
 - Others                                                                                       144,980                          -            144,980                                     
 Total assets                                                                                   1,482,255                        494,460      1,976,715                                   
 Liabilities                                                                                                                                                                              
 - Employee benefit obligations                                                                 215,041                          -            215,041                                     
 - Current liabilities                                                                          568,537                          -            568,537                                     
 - Deferred tax liability                                                                       168,067                          -            168,067                                     
 Total liabilities                                                                              951,645                          -            951,645                                     
                                                                                                                                                                                          
 Net identified assets and liabilities                                                                                                        1,025,070                                   
 Goodwill on acquisition                                                                                                                      1,069,025                                   
 Fair value of purchase consideration                                                                                                         2,094,095                                   
                                                                                                                                                                                          
                                                                                                                                                                                          
 
 
The management expects to derive future benefits from customer relationship for a period of three years from the date of
acquisition and accordingly has decided to amortise the same over that period.
The carrying amounts of the acquiree's assets and liabilities, immediately before the combination and the revenue and the
profit and loss up to the date of acquisition has not been disclosed as the acquiree was not presenting its financial
statements in accordance with IFRS. 
Roto made a profit of USD 80,875 from the date of acquisition of up to 30 September 2009 which has been included in the
consolidated financial statements.
5.    PROVISIONAL GOODWILL
The provisional goodwill that arose on the combination can be attributed to the synergies expected to be derived from the
combination and the value of the workforce of Roto Power Projects Private Limited which cannot be recognised as an
intangible asset under IAS 38 Intangible Assets. As per the provisional purchase price allocation, no other intangible
asset, other than customer relationships, qualified for separate recognition. These circumstances contributed to the entire
excess amount of consideration over net assets acquired, to be classified as goodwill.
As discussed in note above, goodwill of USD 1,056,341 that arose on the acquisition of Roto has currently not been assessed
for impairment and the same shall be done for the annual consolidated financial statements for the year ending 31 March
2010.
A reconciliation of the goodwill acquired at acquisition is presented below: 
 
 Particulars                                As at 30 September 2009  As at 31 March 2009  
 Gross carrying amount                                                                    
 Balance as at the beginning of the period  -                        -                    
 Acquired as part of business combination   1,069,025                -                    
 Translation adjustment                     (12,684)                 -                    
 Balance as at the end of the period        1,056,341                -                    
                                                                                          
 
 
6.    SEGMENT ANALYSIS
The Group has reported segment results based on internal management reporting information that is regularly reviewed by the
Group's Chief Executive Officer and Chairman. Chief Executive Officer and Chairman have concluded that the operating
segment disclosure should be based on services offered by Group.
The reportable segments identified by the group are: guarding services and facility management services. 
The revenues and profit generated by each of Group's business segments are summarised as follows: 
 
 1 April 2009 to 30 September 2009  
                                    Guarding    Facility management  Others   Total       
 Revenue from external customers    11,035,499  2,319,126            219,675  13,574,300  
 Segment operating profit           131,968     (662,835)            88,221   (442,646)   
 Total segment assets               7,860,309   3,268,881            108,243  11,237,433  
                                                                                          
 
 
 1 April 2008 to 30 September 2008  
                                    Guarding    Facility management  Others   Total       
 Revenue from external customers    10,952,623  401,453              266,347  11,620,473  
 Segment operating profit           655,966     (930,229)            15,551   (258,712)   
 Total assets                       7,088,975   5,032,974            287,551  12,409,500  
                                                                                          
 
 
Reconciliation on reportable segments loss to group loss is summarised as under: 
 
                                    For six months ended30 September 2009  For six months ended30 September 2008  
 Segment operating loss before tax  (442,646)                              (258,712)                              
                                                                                                                  
 Reconciling items:                                                                                               
 Other income not allocated*        11,749                                 19,595                                 
 Other expenses not allocated*      (233,697)                              (1,633,052)                            
 Group loss before tax              (664,594)                              (1,872,168)                            
                                                                                                                  
 
 
*Relates to expenses and income recorded in Mortice
7.    LOSS PER SHARE
The basic and diluted loss per share for six months ended 30 September 2009 and 30 September 2008 have been calculated
using the net results attributable to owners of Mortice Limited as the numerator. 
Calculation of basic and diluted loss per share is as follows: 
 
                                                                                                     Six months ended 30 September 2009  Six months ended 30 September 2008  
                                                                                                                                                                             
 Loss attributable to owners of Mortice Limited, for basic and dilutive                              (520,167)                           (1,857,871)                         
 Weighted average numbers shares outstanding during the period for Basic and diluted loss per share  47,700,001                          45,806,558                          
                                                                                                                                                                             
 Basic and diluted loss per share (in USD)                                                           (0.01)                              (0.04)                              
                                                                                                                                                                             
 
 
8.    RELATED PARTY TRANSACTIONS 
 
 Nature of the relationship                                                         Related party's name                                              
                                                                                                                                                      
 I. Entities having control over the Group                                          Mancom Holdings Limited (Holding company)                         
                                                                                                                                                      
                                                                                                                                                      
 II. Key management personnel ("KMP") and significant shareholders :                Mr. Manjit Rajain                                                 
                                                                                    Mr. Andrew Barker                                                 
                                                                                    Mr. V. V. Babji                                                   
                                                                                                                                                      
 III Relatives of KMP                                                               Mrs. Urvashi Rajain (wife of Mr. Manjit Rajain)                   
                                                                                                                                                      
                                                                                                                                                      
 IV. Other Enterprises over which KMP's are able to exercise significant influence  ADL Management Consultants Private Limited (ADL)                  
                                                                                    Micro Azure Computers Private Limited (Micro Azure)               
                                                                                    Eastern Star Hotels & Resorts Private Limited (Eastern)           
                                                                                    Peregrine Security Private Limited (PSPL)                         
                                                                                    Peregrine Facilities Management Systems Private Limited (PFMSPL)  
                                                                                    Peregrine Fleet Management Private Limited (PFMPL)                
                                                                                    Peregrine Safety Systems Private Limited (PSSPL)                  
 
 
Disclosure of transactions between the Group and related parties and the status of outstanding balances as on 30 September
2009 and 30 September 2008 is as under:
Transactions with KMP and their relatives 
 
 Particulars                             Six months ended 30 September 2009  Six months ended 30 September 2008  
                                                                                                                 
 Remuneration                            362,111                             474,763                             
 Loan given                              -                                   4,520                               
 Costs relating to stock options issued  -                                   23,608                              
                                                                                                                 
 
 
The outstanding balances payable to related parties under the category KMP and their relatives as at 30 September 2009 and
31 March 2009 are USD 36,534 and USD 21,202 respectively. 
In addition to the above, the key management personnel participate in the gratuity plan of the companies. 
Transactions with enterprises over which KMP'S are able to exercise significant influence 
 
 Particulars                                         Six months ended 30 September 2009  Six months ended 30 September 2008  
                                                                                                                             
 ADL:                                                                                                                        
 Transactions during the period:                                                                                             
 Advance recovered                                   392                                 -                                   
 Advance given                                       -                                   822                                 
 Professional charges paid                           19,353                              -                                   
 Closing balance                                     (19,829)                            1,329                               
                                                                                                                             
                                                                                                                             
 Micro Azure:                                                                                                                
 Transactions during the period :                                                                                            
 Rent paid on account of property rented             74,938                              58,520                              
 Payment received against security deposit given     35,591                              -                                   
 Closing balance                                     116,216                             232,324                             
                                                                                                                             
 Eastern:                                                                                                                    
 Transactions during the period :                                                                                            
 Income received towards security services provided  1,589                               -                                   
 Advance given                                       -                                   2,112                               
 Closing balance                                     1,589                               2,112                               
                                                                                                                             
 PSPL:                                                                                                                       
 Transactions during the period :                                                                                            
 Advance given                                       -                                   1,624,698                           
 Advance recovered                                   39,069                              205,680                             
 Interest paid                                       11,400                              -                                   
 Amount paid against vehicles purchased              138,357                             -                                   
 Expenses incurred towards vehicle hire charges      3,981                               -                                   
 Closing balance                                     657,124                             174,300                             
                                                                                                                             
 PFMSPL:                                                                                                                     
 Transactions during the period :                                                                                            
 Advance given                                       -                                   4,897                               
 Advance recovered                                   1,016                               -                                   
 Closing balance                                     (818)                               21,385                              
                                                                                                                             
 PFMPL:                                                                                                                      
 Transactions during the period :                                                                                            
 Advance received                                    -                                   5,305                               
 Closing balance                                     -                                   (5,305)                             
                                                                                                                             
 
 
 Particulars                       Six months ended 30 September 2009  Six months ended 30 September 2008  
                                                                                                           
 PPSPL:                                                                                                    
 Transactions during the period :                                                                          
 Expenses recoverable              443                                 -                                   
 Closing balance                   443                                 -                                   
                                                                                                           
 PSSPL:                                                                                                    
 Transactions during the period :                                                                          
 Advance repaid                    -                                   23,057                              
 Closing balance                   -                                   (12,368)                            
                                                                                                           
 
 
The outstanding balances as at 30 September 2009 and 31 March 2009 are as follows: 
 
                    As at 30 September 2009  As at 31 March 2009  
                                                                  
 Total receivables  668,112                  667,152              
 Total payables     (11,289)                 (51,444)             
 
 
9.    COMMITMENTS AND CONTINGENCIES
A summary of the contingencies existing as at the balance sheet date are as follows: 
 
 Nature of the contingency/ commitments          As at 30 September 2009  As at 31 March 2009  
                                                                                               
 Performance bank guarantees given to customers  453,428                  259,397              
 Bank guarantees given to sales tax authorities  3,955                    -                    
 Total                                           457,383                  259,397              
 
 
This information is provided by RNS
The company news service from the London Stock Exchange