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RNS
Tejoori Limited  -  TJI   

Final Results

Released 09:00 29-Dec-2016

RNS Number : 9451S
Tejoori Limited
29 December 2016
 

This announcement contains inside information as stipulated under the Market Abuse Regulation (EU) No 596/2014 (MAR).

 

 

29 December 2016

Tejoori Limited

("Tejoori" or the "Company")

 

Final Results for the year ended 30 June 2016

 

The Board of Tejoori (AIM:TJI), the Dubai-based Shari'a-compliant investment company, is pleased to announce its audited results for the year ended 30 June 2016.

 

For further information:

 

Tejoori Limited

Tel: +971 4 2839316

Abdullah Lootah, CEO

ceo@tejooriltd.ae



Allenby Capital Limited

Tel: +44 (0)203 328 5656

(Nominated Adviser and Broker)


Nick Athanas/Charles Donaldson


 

 

Chairman's Statement

On behalf of Tejoori's board of directors, I am pleased to welcome you to the audited financial results of Tejoori Limited (the "Company") and its subsidiaries (together, the "Group") for the year ended 30 June 2016.

Financial performance during the year

As at 30 June 2016, the Company had cash available for investment of USD 7,567,521 (30 June 2015: USD 2,236,817). In addition, as at 30 June 2016, the Company had USD 2,216,828 placed in wakala deposits (30 June 2015: USD 1,359,597). These deposits carry a profit rate of 5 per cent. per annum. The significant increase in cash at the period end compared to the corresponding period reflects the sale of one of the Arjan plots previously owned by Tejoori in May 2016. This plot was sold for net cash proceeds of USD 6.4 million in May 2016.

During the year under review, Tejoori generated income of USD 107,185 (30 June 2015:  USD 152,172) from Wakala deposits and a net loss and other comprehensive loss of USD 6,502,654 (year ended 30 June 2015: USD 3,711,686), as a result of a revaluation of the Company's assets. In particular Tejoori incurred a revaluation loss of USD 3.35 million on the post year end sale of its holding in BEKON Holding AG.

Major events during the year:

(a)  Sale of interest in BEKON :

-     The major loss incurred during the year is primarily due to the revaluation loss of USD 3.35 million incurred on the Company's 10.1% interest in BEKON Holding AG ("BEKON"). As announced by Tejoori on 24 August 2016, the Company's interest in BEKON was sold post year end, in August 2016, for nil consideration.

-     BEKON Holding AG was acquired by the Eggermann Group GmbH & Co. KG ("Eggermann Group"), a decision that was taken by BEKON's board and majority shareholders.

-     Tejoori was not in favour of this acquisition of BEKON, however Tejoori, as a minority shareholder, was obliged to dispose of its interest by virtue of drag-along rights contained in the selling BEKON shareholders' agreement.

-     There is a potential earn out for the selling BEKON shareholders as per the agreement with Eggermann Group but the Board of Tejoori does not consider that there is a strong prospect that any future earnings will be realised from this arrangement.

-     Therefore, the investment is carried at USD Nil (2015: USD 3.35 million) for the year ended 30 June 2016.

 

(b)  Disposal of Arjan Plot :

As announced in May 2016 Tejoori successfully sold one of the three Arjan Plots owned by Tejoori in the period under review with net cash proceeds of c. USD 6.4 million being received by the Company. The plot was sold for an amount in excess of the last carrying book value prior to the sale, this being USD 4.38 million as at 31 December 2015. Post year end the Group has successfully sold a second plot of land in December 2016 for net cash proceeds of c. USD 3.57 million.

 

Plots in Arjan

 

In May 2016, Tejoori disposed of one of the three plots to Khanhaseb Investments LLC, a Dubai-based investment and real estate company, and the consideration for the disposal was satisfied by a cash consideration of 23,804,000 dirhams (equivalent to approximately USD 6,481,600). 

 

In October 2016, the Company entered into an agreement with SRG Holding Limited, one of the leading family-owned companies in Dubai with extensive operations in property development, to dispose of the second plot with a realisation sum of 13,500,000 dirhams (equivalent to approximately USD 3,673,470). The sale was completed in December 2016 and is therefore not reflected in the financial performance in the year ended 30 June 2016.

 

These disposals are the result of a number of months of hard work by Tejoori's management and the Company's stated strategy is to liquidate its interest in the final Arjan plot. Management of Tejoori is actively working on the sale of the remaining plot. We will keep our shareholders updated on the progress on third plot. Whilst we are confident on a successful outcome there can be no guarantee as to the success or timing of such sale or the terms upon which the plot may or may not be sold.

 

Outlook

Following the sale of the two Arjan Plots and the Bekon investment during 2016 the Company's major remaining investment is its final Arjan Plot which, as outlined above, the Company is in active discussions regarding a possible sale. The Company intends to, as previously stated, return to shareholders a certain proportion of the cash generated from the sale of the plots undertaken to date and it intends to finalise these details following the sale of the third Arjan Plot.

The Company is, in conjunction with its advisers, considering the most effective and efficient manner in which to return cash to shareholders and following the disposal of the third plot the Company will update shareholders further. The Company is also, as part of this review process, evaluating the merits of the Company maintaining remaining as an AIM quoted company given the costs associated with the listing.

An update on the above matters will be announced and provided to shareholders in due course.

 

 

Khalid Al Nasser

Chairman of Board

 

28 December 2016

 

 

Directors' report

 

The Directors of Tejoori Limited ("Tejoori" or the "Company") and its subsidiaries (together the "Group") present their annual report on the operations of the Group, together with the audited consolidated financial statements and auditor's report, for the year ended 30 June 2016.

 

Principal activities

 

The Group's principal activity is that of an investment company which invests in ethical and Shari'a compliant ventures worldwide. The Company is incorporated and domiciled in the British Virgin Islands ("BVI").

 

Listing

 

Listing Requirements

Results and Dividends

 

 

Directors

 

The Directors, who served during the year and to the date of this report, were as follows:

 

Director's name

Date appointed

Date resigned




Khalid Al Nasser

05 April 2008

-

Saad Al Fouzan

05 April 2008

-

Mohamed Abdulla Al Zaabi

05 April 2008

-

Abdullah Ibrahim Saeed Lootah

15 March 2011

-

 

Directors' interests

 

The directors who held office as at 30 June 2016 had the following interest in the shares of the Company.


No. of shares

% holding

Khalid Al Nasser

1,333,333

4.81%

Saad Al Fouzan

1,666,800

6.02%

Mohamed Abdulla Hasan A. Bedboosh Al Zaabi

1,350,000

4.87%

Abdullah Ibrahim Saeed Lootah

200,500

0.72%

 

Refer to Note 17 for other disclosures on directors' interests.

 

 

Acquisition of the Company's own shares

 

By virtue of being traded on a stock market, there is always the possibility of the ordinary shares trading at a discount to their Net Asset Value per Share. However, in structuring the Company, the Directors have given detailed consideration to the discount risk and how this may be managed. Conditionally, the Directors have authority to buy back the ordinary shares in issue.

 

There is no present intention to exercise such authority. Any repurchase of ordinary shares will be made subject to BVI law as appropriate and within guidelines established from time to time by the Board (which will take into account the income and cash flow requirements of the Group) and the making and timing of any repurchase will be at the absolute discretion of the Board. Purchases of ordinary shares will only be made through the market for cash at prices below the prevailing Net Asset Value per Share where the Board believes that purchases enhance Shareholder value.

 

During the period under review no ordinary shares were purchased.

Further share issues  

 

Subject to market conditions then prevailing and to all necessary consents and approvals being obtained, the Board may decide to make one or more further issue of ordinary shares for cash from time to time. There are no provisions of BVI law or the current Articles of Association providing for pre-emption rights for existing Shareholders on the allotment of further ordinary share for cash. Unless authorised by Shareholders (save for the issue of any ordinary shares pursuant to the exercise of any Warrants), the Company will not issue further ordinary shares at a price below the prevailing Net Asset Value per Share unless they are first offered pro-rata to existing Shareholders or Shareholders have otherwise approved any such issue.

 

The Directors have the authority to issue 4,131,279 warrants. These warrants give the holder the right to acquire 1 share in the Company at a price of USD1.00 per warrant. No warrants were issued during the period under audit.

 

 

 

.......................................................

Mohamed Abdulla Al Zaabi

 

 

 

.....................................................

Saad Al Fouzan

 

 

 

......................................................

Abdullah Ibrahim Saeed Lootah

 

28 December 2016

 

Corporate governance statement

 

Whilst the BVI do not have a corporate governance regime the Directors recognise the importance of sound corporate governance, taking into account the size of the Group and the fact that it is a self-managed investment company. The Board will, where practicable, comply with the principles of the Corporate Governance Guidelines for AIM Companies issued by the Quoted Companies Alliance.

 

The Board has established an audit committee comprising of Saad Al Fouzan & Mohammed Al Zaabi with duties and responsibilities formally delegated to it by the Board. The audit committee is primarily responsible for ensuring that the financial performance of the Group is properly monitored and reported on and for reviewing the effectiveness of the Group's systems of internal control.

 

The Group has also established a remuneration and nominations committee to review the performance of its executive Directors and review and recommend the scale and structure of their remuneration and the basis of their remuneration and the terms of their service agreements with due regard to the interests of Shareholders. In considering the remuneration of executive Directors the committee seeks to enable the Group to attract and retain staff of the highest calibre. The remuneration and nomination committee will also be required to approve the allocation of warrants to employees. No Director is permitted to participate in discussions or decisions concerning his own remuneration including the grant of warrants. The committee also ensures that the Board has a formal and transparent appointment procedure and has primary responsibility for reviewing the balance and effectiveness of the Board and identifying the skills needed by the Board and by those individuals who might best provide them. The remuneration and nominations committee consists of Khalid Al Nasser and Abdullah I. S. Lootah.

 

The Group will comply with Rule 21 of the AIM Rules regarding dealings in the Company's shares and will ensure compliance by the Directors and applicable employees. The Group has adopted a share dealing code appropriate for a company admitted to trading on AIM.



 

Directors' remuneration

The services of each of Directors: Saad Al Fouzan, Khalid Al Nasser, Mohammed Al Zaabi& Abdullah Ibrahim Saeed Lootah are provided under the terms of letters of appointment between the Group and each of them.

 

The total amounts for Directors' remuneration payable during the period were as follows:

 

Name of Director


Fee(USD)

Abdullah I. S. Lootah

Executive Director

5,000.00

Khalid Al Nasser

Non-Executive Director

 5,000.00

Mohammed Al Zaabi

Non-Executive Director

5,000.00

Saad Al Fouzan

Non-Executive Director

5,000.00



20,000.00

 

Approval

 

This report was approved by the Board of Directors on 28December 2016and signed on its behalf by:

 

 

 

..................................................

Saad Al Fouzan

 

28 December 2016

 

Statement of directors' responsibilities

 

The Directors are to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Group at the end of the financial period and of the profit or loss of the Group for that period. In preparing those consolidated financial statements, the Directors are required to:

 

·       Select suitable accounting policies and then apply them consistently;

 

·       Make judgements and estimates that are reasonable and prudent;

 

·       State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the consolidated financial statements;

 

·       Prepare the consolidated financial statements on the going concern basis unless it is inappropriate to assume that the Group will continue in business.

 

The Directors confirm that they have complied with the above requirements in preparing the consolidated financial statements.

 

The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Group and to enable them to ensure that the consolidated financial statements comply with International Financial Reporting Standards. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

 

 

Director ………………..                                                                                                                        

 

 

 

Director …………….….

 

 

28 December 2016

 

 

Independent auditors' report

The Shareholders

Tejoori Limited

 

 

 

Report on the Consolidated Financial Statements

 

We have audited the accompanying consolidated financial statements of Tejoori Limited and its subsidiaries ("the Group"), which comprise the consolidated statement of financial position as at 30 June 2016, the consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

 

Management's responsibility for the consolidated financial statements   

 

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

 

Auditors' responsibility

 

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.

 

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. 

 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 

 

Opinion

 

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 30 June 2016, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards.

 

 

 

 

KPMG Lower Gulf Limited

Date:

 

Consolidated statement of financial position

as at 30 June

                               






Note

2016

USD

2015

USD

ASSETS




Cash and bank balances

5

7,567,521

 2,236,817

Wakala deposits

6

2,216,828

 1,359,597

Other receivables

7

1,681,551

 3,741,500

Other assets

8

23,515

 13,131

Available-for-sale investment

9

-

 3,350,000

Investment properties

10

6,630,049

 13,913,682



---------------

---------------

Total assets


18,119,464

24,614,727



=========

========





LIABILITIES AND EQUITY




Liabilities




Due to a shareholder

11

877,200

877,200

Trade and other payables

12

39,033

18,666

Due to related parties

17

524,923

537,899



-------------

-------------

Total liabilities


1,441,156

1,433,765



-------------

-----------

Equity




Share capital                                                            

13

277,089

277,089

Share premium

14

41,286,207

41,286,207

Accumulated losses


(24,884,988)

(18,382,334)



---------------

---------------

Total equity


16,678,308

23,180,962



---------------

---------------

Total liabilities and equity


18,119,464

24,614,727



=========

=========

 

These consolidated financial statements were approved for issue by the Board of Directors of the Company on and signed on its behalf by:

 

 

________________                                                                       ________________

Director                                                                                    Director

 

The notes set out on pages 14 to 34 are an integral part of these consolidated financial statements.

 

The independent auditors' report is set out on page 8 - 9.

 

 

 

Consolidated statement of profit or loss and other comprehensive income

for the year ended 30 June

 





 

 

Note

2016

USD

2015

USD

Income




Return on Wakala deposits


107,185

152,172

Revaluation loss on investment properties

10

(2,901,592)

(2,546,358)

Revaluation loss on available-for-sale investment


(3,350,000)

(690,000)

Loss on sale of property


(180,747)

-



---------------

---------------

Total income


(6,325,154)

(3,084,186)



--------------

--------------

Expenses




Administrative and other operating expenses

15

(177,500)

(167,500)



-------------

-------------



(177,500)

(167,500)



-------------

-------------

Loss for the year


(6,502,654)

(3,251,686)





Other comprehensive income

 

Items that will be reclassified to profit or loss:

 




Net change in fair value of available-for-sale investment


 

(3,350,000)

 

(1,150,000)

Net amount transferred to profit or loss


3,350,000

690,000



--------------

--------------

Total other comprehensive loss


-

(460,000)



-------------

-------------

Total loss and other comprehensive loss for the year


 

(6,502,654)

 

(3,711,686)



========

========





Loss per share - basic and diluted

16

(0.235)

(0.117)









 

The notes set out on pages 14 to 34 are an integral part of these consolidated financial statements.

 

The independent auditors' report is set out on page 8 - 9.

 

 

Consolidated statement of changes in equity

for the year ended 30 June


Share capital

Share premium

Fair value reserve

Accumulated losses

Total


USD

USD

USD

USD

USD







Balance at 1 July 2014

277,089

41,286,207

460,000

(15,130,648)

26,892,648







Total comprehensive income for the year





 

Loss for the year

-

-

-

(3,251,686)

(3,251,686)

Total other comprehensive income for the year





 

Change in the fair value of available for sale financial investment

-

-

(1,150,000)

-

(1,150,000)

Net amount transferred to profit or loss

-

-

690,000

-

690,000

 

----------

----------

--------------

--------------

-------------

Total other comprehensive income for the year

-

-

(460,000)

-

(460,000)

 

----------

-----------

--------------

--------------

-------------

Total comprehensive income for the year

-

-

(460,000)

(3,251,686)

(3,711,686)

 

----------

--------------

--------------

---------------

-------------

Balance at 30 June 2015

277,089

41,286,207

-

  (18,382,334)

23,180,962


======

========

=========

=========

========







Balance at 1 July 2015

277,089

41,286,207

-

  (18,382,334)

23,180,962







Total comprehensive income for the year






Loss for the year

-

-

-

(6,502,654)

(6,502,654)

Total other comprehensive income for the year






Change in the fair value of available for sale financial investment

-

-

(3,350,000)

-

(3,350,000)

Net amount transferred to profit or loss

-

-

3,350,000

-

3,350,000

 

----------

-----------

--------------

--------------

-------------

Total other comprehensive income for the year

-

-

-

-

-

 

----------

-----------

--------------

--------------

-------------

Total comprehensive income for the year

-

-

-

(6,502,654)

(6,502,654)

 

----------

--------------

--------------

---------------

-------------

Balance at 30 June 2016

277,089

41,286,207

-

(24,884,988)

16,678,308


======

========

=========

=========

========

 

The notes set out on pages 14 to 34 are an integral part of these consolidated financial statements.


Consolidated statement of cash flows

for the year ended 30 June

 






Note

2016

USD

2015

USD

Cash flows from operating activities




Loss for the year


(6,502,654)

(3,251,686)





Adjustments for:




Revaluation loss on investment properties

10

2,901,592

2,546,358

Impairment of available for sale financial investment


3,350,000

690,000

Loss on sale of investment property


35,714

-



--------------

--------------

Cash from operating activities

before changes in working capital


 

(215,348)

 

(15,328)









Change in wakala deposits


(857,231)

2,242,595

Change in other receivables


2,059,949

-

Change in other assets


(10,384)

25,593

Change in due to related parties


(12,976)

30,047

Change in trade and other payables


20,367

(56,195)



--------------

--------------

Net cash from operating activities


984,377

2,226,712



--------------

--------------





Cash flows from investing activities




Net cash received from sale of investment property

10

4,346,327

-



-------------

-------------

Net cash from investing activities


4,346,327

-



--------------

--------------

Net increase in cash and cash equivalents


5,330,704

2,226,712



-------------

-------------

Cash and cash equivalents at the beginning of the year


 

2,236,817

 

10,105



-------------

-------------

Cash and cash equivalents at the end of the year

5

7,567,521

2,236,817



========

========





 

The notes set out on pages 14 to 34 are an integral part of these consolidated financial statements.

 

The independent auditors' report is set out on page 8 - 9.



 

Notes to the consolidated financial statements

 

1.    Legal status and principal activities

  

Tejoori Limited ("the Company") and its subsidiaries (together, "the Group") are self-managed investment companies. The Company's shares were listed on the Alternative Investment Market ("AIM") of the London Stock Exchange ("LSE") on 24 March 2006.

 

The Company is incorporated and domiciled in the British Virgin Islands and its registered address is PO Box 173, Kingston Chambers, Road Town, Tortola, British Virgin Islands. The Company's operations are managed from the United Arab Emirates (UAE).

 

The principal activity of the Group is investment in Shari'a compliant ventures worldwide.

 

The Company has the following subsidiaries and special purpose vehicles.

 

Entity

Ownership %

Country of incorporation

 

2016

2015

 

Tejoori Emirates LLC

100

100

United Arab Emirates

Tejoori Environmental M.E Limited

100

100

British Virgin Island

Lagoons Plot 1 Limited

100

100

British Virgin Island

Lagoons Plot 2 Limited

100

100

British Virgin Island

Lagoons Plot 3 Limited

100

100

British Virgin Island

 

Tejoori Emirates LLC is a Limited Liability Company incorporated in the Emirate of Dubai, United Arab Emirates ("UAE") on 15 August 2006 under Federal Law No 8 of 1984 (as amended) applicable to commercial companies. Its registered address is P.O Box 75008, Dubai, United Arab Emirates. Tejoori Emirates LLC has been nominated to hold title over investment properties.

 

Lagoons Plot 1 Limited, Lagoons Plot 2 Limited and Lagoons Plot 3 Limited are companies registered in British Virgin Islands, incorporated on 6 June 2006. These special purpose vehicles were established for the purpose of acquiring plots of land in the Lagoon project in Dubai, UAE. During the year ended 30 June 2013, the purchase agreement for the Lagoon plots was cancelled and pursuant to an agreement with the seller on 9 December 2012, the advanced payments against these plots were adjusted against the purchase price of three plots of land in the Arjan project in Dubai, United Arab Emirates (refer note 10).

 

Tejoori Environmental M.E. Limited, Lagoons Plot 1 Limited, Lagoons Plot 2 Limited and Lagoons Plot 3 Limited are currently dormant entities due for dissolution.

 

2.    Basis of preparation

 

a)      Statement of compliance

 

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as issued by International Accounting Standard Board ("IASB").

 

b)      Basis of measurement

 

The consolidated financial statements have been prepared on the historical cost basis except for investment properties and an available-for-sale investment which are measured at fair value.

 

c)      Functional and presentational currency

 

The consolidated financial statements are presented in United States Dollars ("USD"), which is the Company's functional currency.

 

d)      Use of estimates and judgments

 

The preparation of these consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of the Group's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and associated assumptions are based onhistorical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, and have significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year as discussed below:

 

(i)     Classification of investments

 

Judgements are made in the classification of financial instruments based on management's intention at the time of acquisition.

 

The Group treats available-for-sale equity investments as impaired when there has been a significant or prolonged decline in the fair value below its cost or where other objective evidence of impairment exists. The determination of what is "significant" or "prolonged" requires considerable judgement.

 

(ii)    Valuation of unquoted investments

 

Valuation of unquoted investments, not reported on by custodian banks, requires considerable judgement by the Group and is normally based on one of the following:

i.   Recent arm's length transactions;

ii.  Current fair value of another instrument that is substantially the same;

Notes to the consolidated financial statements (continued)

 

d)      Use of estimates and judgments (continued)

(ii)    Valuation of unquoted investments (continued)

 

iii. The expected cash flows discounted at current rates applicable for items with similar terms and risk categories;

iv. When the investment is held through a third party fund, the present valuation reported by the fund manager from time to time; and

v.  Other valuation models.

 

Where the valuation of unquoted investments is made by the custodian bank, the judgement is by the custodian bank and not the Group.

 

e)      Change in accounting policy

 

The Group has adopted the following new standards and amendments to standards, including any consequential amendments to other standards, with a date of initial application of 1 July 2015:

 

(i)      Annual Improvements to IFRS 2010-2012 Cycle - various standards; and

(ii)     Annual Improvements to IFRS 2011-2013 Cycle - various standards.

 

3.    Significant accounting policies

Except for the change explained in note 2(e), the Group has consistently applied the following accounting policies to all periods presented in these consolidated financial statements, unless otherwise stated.

 

a)      Basis of consolidation

Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.

 

Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised gains arising from intra-group transactions, are eliminated in preparing the Group's consolidated financial statements.

 

b)      Return on Wakala deposits

 

Return on Wakala deposits is recognised on a time proportionate basis in the consolidated statement of comprehensive income using effective yield method. Effective yield is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the Wakala deposit (or, where appropriate, a shorter period) to the carrying amount of the Wakala deposit.

 

c)      Dividend income

Dividend income is recognised in profit or loss on the date that the right to receive payment is established which is usually the date when the shareholders have approved the payment of a dividend. Dividend income from equity securities designated as available-for-sale is recognised in profit or loss as a separate line item.

 

d)      Foreign currency transactions

Transactions denominated in foreign currencies are translated into US Dollars ("USD") at the foreign exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated into USD at the foreign exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated into USD at the foreign exchange rate at the date that the fair value was determined. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

 

e)      Property and equipment

Property and equipment is stated at cost less accumulated depreciation. Depreciation is calculated on the straight-line method to write down the cost of assets to their estimated residual values over their expected useful economic lives as follows:

                                                                                                                                   Years

Computers 

3

Furniture and fixtures                                                                                              

5

Office equipment                                                                                                       

4

 

Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount being the higher of the net fair value and value in use.

 

Gains and losses on disposal of property and equipment are determined by comparing the sales proceeds to their carrying amount and are taken into account in determining profit / loss for the year. Repairs and renewals expenses are charged to the profit or loss when the expenditure is incurred.

 

f)       Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both. Investment property is recognised when the full purchase price is paid and legal and beneficial title is transferred to the Group. Investment property is measured at cost on initial recognition and subsequently at fair value with any change therein recognised in profit or loss.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss.

The Group determines fair value on the basis of valuation provided by an independent valuer who holds a recognised and relevant professional qualification.

 

g)      Provisions

A provision is recognised if, as a result of a past event the Group has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

 

h)      Financial instruments

The Group classifies the financial assets into the following categories: financial assets at fair value through profit or loss, held-to-maturity financial assets, loans and receivables and available-for-sale financial assets.

The Group classifies non-derivative financial liabilities into the other financial liabilities category.

Non-derivative financial assets and financial liabilities - Recognition and derecognition

The Group initially recognises loans and receivables and debt securities issued on the date when they are originated. All other financial assets and financial liabilities are initially recognised on the trade date.

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in such derecognised financial assets that is created or retained by the Group is recognised as a separate asset or liability.

The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

Non-derivative financial assets - Measurement

Available-for-sale

These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses, are recognised in OCI and accumulated in the fair value reserve. When these assets are derecognised, the gain or loss accumulated in equity is reclassified to profit or loss.

 

Non-derivative financial liabilities - Measurement

Non-derivative financial liabilities are initially recognised at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective yield method.

Fair value measurement principles

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction on the measurement date.

When available, then the Group measures the fair value of an instrument using quoted prices in an active market for that instrument. A market is regarded as 'active' if quoted prices are readily and regularly available and represent actual and regularly occurring market transaction on an arm's length basis.

Assets and long positions are measured at a bid price; liabilities and securities sold short are measured at an asking price.

Fair value hierarchy

Inputs to valuation techniques reasonably represent market expectations and measures of the risk-return factors inherent in the financial instrument.

Fair value of derivatives that are not exchange traded is estimated at the present value of the amount that the Group would need to pay to terminate the contract at the reporting date taking into account current market conditions and the current credit worthiness of the counterparty.

Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the Group and the counterparty, where appropriate. Fair value estimates obtained from models are adjusted for any other factors, such as liquidity risk or model uncertainties; to the extent that the Group believes a third-party market participant would take them into account in pricing a transaction.

 

Fair value hierarchy (continued)

The Group uses the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:

Level 1: Quoted market price (unadjusted) in an active market for an identical instrument.

Level 2: Valuation techniques based on observable input, either directly (i.e., as prices) or indirectly (i.e., derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments; or other valuation techniques where all significant inputs are directly or indirectly observable from market data.

Level 3: Valuation techniques using significant unobservable inputs- this category includes all instruments where the valuation technique includes inputs based on observable data and the unobservable inputs have a significant effect on the instrument' valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

         Gains and losses on subsequent measurement

Gains and losses arising from changes in the fair value of the 'financial instruments at fair value through profit or loss' category are included in profit or loss in the period in which they arise.

 

         Impairment of financial assets

At each reporting date, the Company assesses whether there is objective evidence that financial assets not carried at fair value through profit and loss ("FVTPL") are impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the assets, and that the loss event has an impact on the future cash flows of those assets that can be estimated reliably.

Individually significant financial assets are tested for impairment on an individual basis.

In the case of equity investments classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is considered as objective evidence in determining whether the assets are impaired. If any such evidence exists for such financial instruments, impairment loss is recognised.

Financial assets are written off only in circumstances where all collecting activities have been exhausted.

Impairment losses on financial assets classified as available-for-sale are recognised by transferring the cumulative loss that has been recognised in other comprehensive income to the profit or loss. The cumulative loss that is reclassified from other comprehensive income to the profit or loss is the difference between the acquisition cost, net of any principal repayment and amortisation, and the current fair value, less any impairment loss previously recognised in the profit or loss.

 

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate.

  

If, in a subsequent period, the fair value of an impaired debt security classified at fair value through other comprehensive income, increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in the profit or loss, the impairment loss is reversed, with the amount of the reversal recognised in the profit or loss. However, any subsequent recovery in the fair value of an impaired equity investment classified as available-for-sale is not reversed through the profit or loss and is recognised in other comprehensive income.

 

            Non-financial assets

 

            The carrying amounts of the Company's non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment.  If any such indication exists, the asset's recoverable amount is estimated.

 

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash-generating unit").In the case where asset's carrying amount exceeds its recoverable amount as estimated, an impairment loss is recognised in the profit or loss as the difference between carrying amount of asset and its recoverable amount.

            Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists and reversal is made if there has been a change in the estimates used to determine the recoverable amount. The reversal is made only to the extent that the asset's revised carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

 

i)    New standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretation are effective for annual periods beginning on or after 1 January 2015, and have not been applied in preparing these financial statements. Those which may be relevant to the Group are set out below. The Group does not plan to adopt these standards early.

 

Standards

Description

Effective for periods beginning

IFRS 15

Revenue from Contracts with Customers

The Group is currently reviewing the impact of the above mentioned standards.

 

 

4.    Risk management

The board of directors of the Group is responsible for setting and managing the risk management framework of the Group.

 

The Group investment portfolio comprises an equity investment, investment property, Wakala deposits and cash and cash equivalents.

 

The Group has exposure to the following financial risk arising from the use of financial instruments:

·       Credit risk;

·       Liquidity risk and

·       Market risk.

 

Credit risk

 

         Credit risk is the risk that counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Group, resulting in a financial loss to the Group. It arises principally from Wakala deposits of the Group and cash and cash equivalents.

 

The Group seeks to manage its credit risks by monitoring credit exposures and assessing the creditworthiness of counterparties. The risk with respect to cash and cash equivalents is limited because the Group places funds with banks with good credit ratings.

 

         The Group's maximum credit risk exposure at the reporting date is represented by the respective carrying amounts of the financial assets in the statement of financial position as follows: 



2016

USD

2015

USD

Cash at bank (note 5)


      7,567,521

2,236,817

Wakala deposits (note 6)


      2,216,828

1,359,597

Other receivables (note 7)


      1,681,551

3,741,500

Other asset (note 8)


10,748

-



-------------

------------



11,476,648

7,337,914



========

=======

 

As at 30 June 2016, 100% (2015: 100%) of the credit exposure is with entities based in the UAE. 

 

Liquidity risk

 

         Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations arising from its financial liabilities that are settled by delivering cash or another financial asset, or that such obligations will have to be settled in a manner disadvantageous to the Group.

 

The Group's approach to managing liquidity is to have sufficient liquidity to meet its liabilities, as and when due, without incurring undue losses or risking damage to the Group's reputation.

 

The Group maintains cash balances with banks to maintain liquidity and to pay other payables. At the reporting date the Group held USD 7,567,521 (2015: USD 2,236,817) in balances with a bank.

 

Market risk

 

Market risk is the risk that changes in market prices, such as property prices, profit rates, equity prices, foreign exchange rates and credit spreads (not related to changes in the obligor's / issuer's credit standing) will affect the Group's income or the value of its holding of financial instruments. 

 

The Group's strategy on the management of investment risk is driven by the Group's investment objective.

 

The Group has limited exposure to currency risk as the majority of the Group's transactions are in USD and United Arab Emirate Dirham (AED). Foreign exchange risk is minimised as the AED is currently pegged to the USD.

 

The Group's available-for-sale investment represents the Group's primary exposure to currency risk. The investment pertains to an equity investment in Euro currency in a German company which has a carrying value as at 30 June 2016of USD nil(2015: USD 3,350,000) refer note 9.

 

A 5% strengthening / weakening in the value of the Euro against the US Dollar with all other variable held constant would result in an increase / decrease in the profit of the Group of USD nil (2015: USD 173,732).

 

Profit rate risk

 

The Group is not significantly exposed to the profit cash flow rate risk. The cash balances are held in current accounts and are non-profit bearing. Wakala deposits are placed for a short term at a fixed profit rate of 5% p.a. (2015: 5% p.a.).

 

 

Equity price risk

 

Equity price risk is the possibility that equity prices will fluctuate, affecting the fair value of equity investments and other instruments that derive their value from a particular equity investment or index of equity prices.

 

The Group is exposed to equity price risk on its available-for-sale investment. A 5% strengthening or weakening in prices, with all or variables held constant would result in an increase / decrease in the profit of the Group of USD nil (2015: USD 173,732).

 

Fair values

 

The fair values of the financial assets and liabilities are not materially different from their carrying values at the reporting date.

 

Capital management

 

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns to shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

 

5.    Cash and bank balances

 



2016

USD

2015

USD





Cash at bank


7,567,521

2,236,817



=======

======

 

Cash at bank is placed with local banks based in the United Arab Emirates.

 

6.    Wakala deposits

 



2016

USD

2015

USD





Wakala deposits


2,216,828

1,359,597



=======

=======

 

The Wakala deposits are placed with corporate entities in the United Arab Emirates and carry a profit rate of 5% per annum (2015: 5% per annum).

 

In view of the management, cash flows from such rescheduled deposits are fully recoverable, hence no impairment provision is required.

 

 

7.    Other receivables

 



2016

USD

2015

USD





Other receivables(Note 7.1)


1,681,551

3,741,500



=======

=======

 

7.1  On 26 October 2008, the Group entered into a contract to sell its interest in Lagoons plot 3, for USD 12.6 million of which USD 3.1 million was receivable from the acquirer at the time.

In September 2012, the acquirer of the plot signed an agreement ("settlement agreement") with the Group whereby the acquirer delegated the Group to perform settlement with the main developer of Lagoons plots for replacing the Lagoons plot with an alternative plot of land.

During the year ended 30 June 2013, the Group successfully replaced the Lagoons plots for alternative plots in the Arjan project located in Dubai, UAE. USD 0.6 million of the additional costs incurred on the exchange of plots was payable by the acquirer which has been added to the earlier receivable of USD 3.1 million. However, the acquirer has refused to settle the balance due to the Group. While the negotiations are ongoing to settle the dispute, no impairment has been recognised.

 

During the year, the Group sold a portion of the investment property for a gross consideration of USD 6.53 million (refer note 10) and the amount payable to the acquirer on such disposal has been adjusted against the receivable from the acquirer in accordance with the settlement agreement dated 14 September 2012.

 

8.    Other assets

 



2016

USD

2015

USD

Prepayments and other assets


23,515

13,131



======

======

        

        

9.    Available-for-sale investment

 

During the year ended 30 June 2007, the Group invested EUR 5.9 million to acquire 16.73% equity interest in BEKON Holding AG. BEKON Holding AG specializes in the construction and operation of biogas plants for the generation of electricity and gas injection, as well the production of quality compost and organic fertilizer.

During the year ended 30 June 2009, BEKON Holding AG increased its share capital, which was not participated by the Group, resulting in the dilution of the Group's investment to 15.16%.

During the year ended 30 June 2012 and 30 June 2013 BEKON Holding AG increased its share capital which further diluted the Group interest to 12.76% and then to 11.69% as at 30 June 2013.

On 2 July 2013, the Group interest was further diluted to 10.1% due to an additional increase in share capital by BEKON Holding AG.

As at 30 June 2016, the available-for-sale investment represents 10.1% (30 June 2015: 10.1%) investment in BEKON Holding AG.

 

Subsequent to the year end, on 10 August 2016, the Board of directors of the Group declared the disposal of its 10.1% interest in BEKON Holdings AG. BEKON Holdings AG was acquired by the Eggersmann Group GmbH & Co. KG ("Eggersmann Group"), based on the decision made by the majority shareholders of BEKON Holdings AG. Due to the rights of preferential shareholders of BEKON Holdings AG in the sale, the Group hasn't received any initial consideration for the sale of its shares. The Group had to dispose its 10.1% interest by virtue of drag along rights in the BEKON Holdings AG shareholders' agreement. While, there is a potential earn out for the shareholders in the sale and purchase agreement with Eggermann Group by selling BEKON Holdings AG shares, the Board of Directors does not consider any future earnings to be realised by the Group. As such, the investment is carried at USD nil (2015: USD 3.35 million) for the year ended 30 June 2016.

 







2016

USD

2015

USD

Balance at 1 July


3,350,000

4,500,000

Fair value loss during the year


(3,350,000)

(1,150,000)



------------

------------

Balance at 30 June


-

3,350,000



=======

=======

        

 

 

10.  Investment properties

 

The fair value of the investment properties, is determined by the management based on an exit price of a comparable transaction which occurred subsequent to the year ended 30 June 2016. Management believe the fair value of these properties at the reporting date is not materially different from the actual transaction price of the comparable transactions.

Valuation of investment properties

The Company has taken the highest and best use fair values for the fair value measurement of its investment properties. Investment properties are measured under level 3 of fair value hierarchy.

Valuation technique

Significant unobservable inputs

Interrelationship between key unobservable inputs and fair value measurements

 

 

The estimated fair value increase/decrease if:

1)   Sales comparative valuation approach

 

-  Freehold property

-  Free of covenants, third party rights and obligations

-  Statutory and legal validity

-  Condition of the property

-  Sales value of comparable properties

-  Development costs

- The property is not freehold

-  The property is subject to any covenants, rights and obligations

-  The property is subject to any adverse legal notices/judgement

-  The property is subject to any defect/damages

-  The property is subject to sales value fluctuations of surrounding properties in the area.

 



2016

USD

2015

USD

Balance as at 1 July


13,913,682

16,460,040

Unrealised loss on fair value


(2,901,592)

(2,546,358)

Realised sale proceeds from sale of property


(4,346,327)

-

Realised loss on sale of property


(35,714)

-



--------------

--------------



6,630,049

13,913,682



=========

=========

 

During the year, the Group management has sold a property on which they have received a gross consideration of USD 6.53 million and the amount payable to the acquirer on such disposal (refer note 7.1) has been adjusted against the receivable from the acquirer in accordance with the settlement agreement dated 14 September 2012.

 

11.  Due to a shareholder

In accordance with the Group's placement document issued at the time of the Initial Public Offer (IPO), the shareholding of individual investors from the IPO cannot exceed eight percent of the issued and fully paid share capital. This balance represents funds received from a shareholder in excess of the eight percent limit and is refundable to the shareholder unless the Group is able to secure additional capital from the other shareholders.

12.  Trade and other payables



2016

USD

2015

USD

Trade payables


17,017

-

Audit fee payable


21,200

17,850

Other payables


816

816



-------------

-------------



39,033

18,666



========

========

 

13.  Share capital

 

The authorised share capital of the Company comprises 100million shares of USD 0.01 each (2015: 100  million shares of USD 0.01 each).

The issued and fully paid share capital of the Company comprises 27,708,864 shares of USD 0.01 each (2015: 27,708,864 shares of USD 0.01 each).

14.  Share premium

         Share premium represents amounts received from shareholders in excess of the nominal value of the shares allotted to them.

15.  Administrative and other operating expenses



2016

USD

2015

USD

Legal and professional fees


136,114

128,834

Administration fees


2,785

5,235

Directors' remuneration and fees


27,500

17,500

Salary expense for CEO (note 15.1)


5,557

11,514

Others


5,544

4,417



----------

----------



177,500

167,500



======

======

 

15.1   Subsequent to the year ended 30 June 2013, the Directors passed a resolution for cancelling the previous arrangement for outsourcing of administrative services to an outsourcing company Injaz Capital Investments LLC, and replaced it with a monthly salary for the Chief Executive Officer (CEO) and his management team of USD 2,500 per month as well as setting a maximum cap on administrative and general expenses to USD 150,000 excluding Board of Directors fees. USD 24,443 has been charged from the CEO's salary in order to keep in line with this resolution.

 

16.  Loss per share

 

The basic earnings per share is calculated by dividing the net profit/loss attributable to shareholders by the weighted average number of ordinary shares in issue during the year.

 



2016

USD

2015

USD

Loss for the year


(6,502,654)

(3,251,686)





Weighted average number of shares in issue


27,708,864

27,708,864





Basic and diluted loss earnings per share in USD


(0.235)

(0.117)



======

======

 

 

 

17.  Related party transactions and balances

 

Related parties comprise shareholders, directors, key management, businesses controlled by shareholders or directors as well as businesses over which they exercise significant influence. During the year, the Group entered into significant transactions with related parties in the ordinary course of business. The transactions and balances arising from these transactions are as follows:

 


2016

USD

2015

USD

Transactions



Key management compensation for the Chief Executive Officer and his management team

 

30,000

 

30,000

Directors' fees and other remuneration(refer note 15)

27,500

17,500


----------

----------


57,500

47,500


======

======

 

 



2016

USD

2015

USD

Due to related parties




Due to a shareholder(refer note 11)


877,200

877,200



======

======





Due to key management personnel


476,703

489,679

Due to Injaz Capital Investments LLC


48,220

48,220



----------

----------



524,923

537,899



======

======

 

18.  Segmental reporting

 

Following the management approach of IFRS 8, operating segments are reported in accordance with the internal reporting provided to the Board of Directors (the chief operating decision-maker), which is responsible for allocating resources to the reportable segments and assesses its performance. The Group is managed as one unit and therefore the Board of Directors are of the opinion that the Group is engaged in a single segment of investing in Shari'a compliant investments worldwide.

 

19.  Fair value measurement - fair value hierarchy

The table below analyses financial instrument measured at fair value at the end of the reporting period, by the level in the fair value hierarchy into which the fair value measurement is categorised:

 

2016

Level 1

Level 2

Level 3

Total






Available-for-sale investment

-

-

-

-

Total

-

-

-

-


2015

Level 1

Level 2

Level 3

Total






Available-for-sale investment

-

-

3,350,000

3,350,000

Total

-

-

3,350,000

3,350,000

 

During the year there were no fair value hierarchy transfers between all levels above.  Further, there has been no change in the valuation techniques in relation to the valuation of financial instruments.

 

The following table shows a reconciliation from the beginning balances to the ending balances for fair value measurement in Level 3 of the fair value hierarchy:

 



Financial

assets

2016

Financial

assets

2015





Balance at 1 July


3,350,000

4,500,000

Net unrealised loss (refer note 9)


(3,350,000)

(1,150,000)



----------

----------

Balance at 30 June


-

3,350,000



======

======

 

        

Significant unobservable inputs used in measuring fair value:

 

Description

Fair value as at

30 June 2015

Valuation Technique

Unobservable input

Range

(weighted average)

Reasonable

possible

shift +/-

(%)

Change in

valuation +/-

US$'000


USD






 

Investments

 

-

 

Not applicable

 

Not applicable

 

Not applicable

 

Not applicable

 

Not applicable


--------------







-







========













Fair value as at 30 June 2015






USD






 

Investments

 

3,350,000

 

Discounted cash flow

multiple

 

Discount rate

 

 

13.5%

 

 

5%

 

(300,000)/(345,000)



Trading comparables

EV/EBITDA multiple

15.2x

5%

93,000/ (93,000)



Trading comparables

EV/Revenue

0.8x

5%

79,000/(79,000)


--------------







3,350,000







========






 

Valuation techniques

 

The fair value of investments is assessed based on multiple valuation techniques including discounted cash flows, market multiples', recent arm's length transactions between knowledgeable, willing parties (if available). The Group uses the most relevant valuation technique or combination of techniques specific to each investment in order to determine the fair value.

 

The Group calibrates these valuation techniques and tests them for validity by stress testing the investments and making an appropriate adjustment where there could be a material effect.

Significant unobservable inputs are developed as follows:

 

Discount rate:

 

A discount rate is used to determine the net present value of the expected future cash flows when using the Discounted Cash Flow valuation technique. The discount rate used is specific to each individual investment and reflects relevant factors such as liquidity risk, political/country risk, execution risk, foreign exchange risk etc.

 

EV/EBIT multiple:

 

Enterprise value to earnings before interest and tax (EV/EBIT) is a measurement to share in the Group is economical, relative to the competing firms or the wider market. EV/EBIT values the Group regardless of its capital structure.

 

P/BV multiple:

 

The price-to-book value ratio, expressed as a multiple, is an indication of how much shareholders are paying for the net assets of the investment.

 

EV/EBITDA multiple:

        

Enterprise value to earnings before interest, tax, depreciation and amortisation (EV/EBITDA), is a measurement for estimating the investment value, by comparing the value of one company to the value of another company within the same industry.

 

EV/Revenue multiple:

        

Enterprise value to revenue is a measure used to decide the share price of the investment. This measure is an expansion of the price-to-sales valuation, which uses market capitalisation instead of enterprise value.

 

         Financial instruments not measured at fair value

 

These include cash and bank balances, other receivables and trade and other payables and are measured under level 3 of fair value hierarchy. Management believes that the fair values of those instruments are approximately equal to their carrying values.

 


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