Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR) Mortice Limited ( Mortice, the Group or the Company ) Results for the Half Year ended 30 September 2016 Mortice Limited (AIM: MORT), the AIM listed security and facilities management company, announces its unaudited results for the half year ended 30 September 2016. Financial results highlights: Revenues from operations grew by 79% to $91.1 m (HY 2015: $51.0m) o Man Guarding business increased by 40% to $48.5m (HY 2015: $34.5m) Contributing 53% of group revenues o Facilities Management business revenue grew 158% to $42.5m (HY 2015: $16.5m) Contributing 47% of group revenues o 22% ($10.4m) growth from Indian Operations o 57% ($29.7m) growth from the Office & General and Frontline O&G - Revenue $29m (HY 2015 $4.0m) Frontline - Revenue $5m (HY 2015 nil) o Revenue mix (HY-2016) India - 63% UK - 32% Singapore - 5% Adjusted EBITDA* increased more than 200% to $5.0m (HY 2015 $1.3m) o $1.85m of EBITDA increase from O&G and Frontline acquisitions. O&G -$0.90m (HY 2015 -$ 0.1 m) Frontline -$0.95m (HY 2015 - Pre Acquisition period) Adjusted profit before taxation* increased to $2.6m (449%) (HY 2015: $0.3m) Net debt of $14.6m (FY 2016: $14.5m) * Adjusted EBITDA and profit before tax excludes $0.5m of gains from financial liabilities measured at fair value Operational highlights: 257 new clients added during the period o including Amazon, Torrent Pharma, JW Marriott, Thermal Power Corporation India, Renault Nissan, Samsung, Procter & Gamble, British School, Clariant, UOH, GAM-UK More than 77% of income generated from repeat business Appointment of two new Non-Executive Directors Commencement of 55m contract with the University of Hertfordshire O&G and Frontline were fully integrated into the business Post Period End: Placing to raise 2.3m in December 2016 (the Placing ) o Proceeds to reduce indebtedness, providing balance sheet flexibility to pursue various growth opportunities o Effects of Placing expected to be earnings enhancing O&G appointed to London Universities 60m cleaning framework Continuation of strong trading with the Company remaining on track to at least meet market expectations for full year ending 31 March 2017 Major Manjit Rajain, Executive Chairman of Mortice Limited, said:
The strong momentum achieved during the period reflects the Company s ability to win new contracts across all parts of the business. Our underlying performance was especially pleasing, but the Group s performance has also been assisted by the performance of our acquired businesses, which have benefited from the backing of Mortice to accelerate their expansion. We are focused on becoming a global business operating in multiple geographic regions and are excited by the potential to further extend our reach. Our existing operations provide a solid foundation for growth as we continue to benefit from high levels of visibility thanks to long-term contracts and a retention rate of over 77%. We have a blue-chip client base with a growing ability to cross sell our services and, as such, we view the future with confidence. Additionally, we have a proven ability to execute acquisitions and will continue to evaluate opportunities to further consolidate our position. Furthermore, we have a strong pipeline of potential new and existing opportunities. There is significant scope for scalability across the Group's target markets and the contracts generated to date demonstrate the attraction of the enlarged Group's service offering. As such, we believe that visibility will continue to improve throughout the remainder of the year and we very much look forward to updating the market with further developments in due course. Mortice Limited www.morticegroup.com Manjit Rajain, Executive Chairman Tel: +91 981 800 0011 finncap Ltd Tel: 020 7220 0500 Adrian Hargrave / Giles Rolls / Alex Price (Corporate Finance) Tony Quirke (Corporate Broking) Walbrook PR Tel: 020 7933 8780 or mortice@walbrookpr.com Paul McManus / Nick Rome / Sam Allen Mob: 07980 541 893 / 07884 666 686 About Mortice Limited Mortice (AIM: MORT), is an AIM listed security and facilities management company, incorporated in Singapore and based in India with additional operations in Singapore and the UK. Mortice operates under two brands, in India: Peregrine provision of guarding and security services to a wide range of clients from blue-chip companies, smaller businesses, commercial and private properties, and individuals. Tenon provision of a full range of facilities management services to corporate occupiers, owners and developers of real estate. Clients include some of the world s most respected blue chip and homegrown companies. Within the Tenon group, Mortice also offers security surveillance services through its subsidiary Soteria and mechanical and engineering services via Rotopower The business is growing and profitable and is focused on expanding its geographical footprint and growing through targeted acquisitions, as well as organically. In 2015 the Company established Tenon UK and through this wholly owned subsidiary, acquired UK based Office & General Group Limited (O&G ), an independent property service company specialising in cleaning and providing support services such as environmental solutions and built fabric maintenance in the UK. In
addition, the Company acquired a 51% majority stake in Singapore-based security company Frontline Security Pte. Ltd, and has an option to acquire an additional 25% within three years.
Chairman s Statement Overview This was another period of excellent growth for the Company, as it generated strong organic growth with likefor-like profits and sales significantly ahead of the same period last year. In addition, the Company benefited from strong contributions from O&G and Frontline, which further strengthened the Company s overall performance during the period and will provide further opportunities for the Group to leverage its client base of international blue-chip clients. The Group won several high profile new contracts during the period with facilities management growing particularly strongly on the back of the strong contribution from O&G. With the acquisitions now fully bedded in, further benefits are expected during the second half with significant scope for new business from the framework agreement with London Universities. India continues to provide a strong cornerstone for growth. Importantly, India is expected to continue to expand rapidly and underpin further growth with the security market expected to grow in excess of 20% per year. There is significant scope for the Company to grow its security service business at an even faster rate, as legislation is dictating a shift towards compliant security services, benefitting established participants such as Peregrine. Furthermore, the facilities management industry, in India, is also expected to continue its pace of growth as the trend towards outsourced facilities management continues. By way of example, in India the IT industry currently outsources approximately 60 per cent. of its facilities management, whilst the retail and manufacturing sectors only outsource approximately 15 per cent. Results Revenues grew 79% to $91.1m (HY 2015: $51.0m) during the period with profits of $3.1m (HY 2015: $0.3m). The underlying performance remained strong with growth across all parts of the business. $34m of sales was contributed by O&G and Frontline. Adjusted EBITDA for the period was $5.0m compared to $1.3m for the first half last year with adjusted PBT for the period $ 2.6m, compared to $0.3m in the first half last year. The Company remains confident about its prospects for the financial year ending 31 March 2017 as it benefits from business synergies and consolidation of the acquired businesses. During the period, the Company s increased net borrowings remained broadly consistent at $14.6m. Currency fluctuations impacted revenue growth in dollar terms from India. Sales grew 27% from INR 3.02 Bn to 3.85INR Bn, however once converted the increase was 22%, growing from $47.0m to $57.4m during the period. The adjusted PBT was INR 146.7 m ($2.2m) and adjusted PAT was INR 109m ($1.6m) compared to INR 80.6m ($1.3m) and INR 54.7m ($0.9m) respectively, from the same period last year. Sales from our guarding services division, Peregrine Services, grew 27% to $44m (HY 2015: $35m), accounting for 48% of group revenues. Key client wins included Amazon, Torrent Pharma, JW Marriott, Thermal Power Corporation India, Renault Nissan, Samsung, Procter & Gamble. *Conversion rate 1 INR: $0.01
International Growth The acquisitions of Frontline and O&G significantly broadened our geographic reach while also providing foundations for us to build on and develop existing relationships they had in place as highlighted by the 55m contract win with the University of Hertfordshire, worth 5.3m a year, providing a strong reference point for the capabilities of the enlarged Group. Furthermore, the Company was delighted by O&G s appointment to London Universities 60m cleaning framework. The framework covers the provision of cleaning and associated support services for London Universities Purchasing Consortium ( LUPC ) members in Greater London and South East England over a three-year period. As part of the Framework, member institutions may from time to time invite suppliers within the Framework to participate in tenders for the provision of cleaning services. Whilst O&G is not an exclusive provider of services to this Framework, it is the only contractor to be appointed to all three elements of the LUPC Framework and so is well positioned to benefit from this agreement. O&G provides exposure to the UK market and contributed revenues of $29m representing 32% of total group revenues during the period. In addition, long-term orders continue to ensure high levels of visibility. Singapore-based Frontline also contributed positively with revenues of $5m. The focus here remains on finding innovative ways of generating business and increasing profit. Soteria Soteria, which offers managed remote surveillance services using an IBM platform, gained further momentum. We are seeing increased client interest and many institutional clients have visited our command centre. Our trading continues to be robust and, with increased government focus on infrastructure and manufacturing, the demand for our services is well placed to increase. Significantly there is the potential for a global rollout. As well as a growing domestic client base, Soteria has clients based in the UK and the US. Board Appointments In May 2016 the Company appointed Pallavi Bakhru and Richard Gubbins as Non-Executive Directors. Their appointments help strengthen the Board as it continues its growth strategy, particularly in an international context, given both of their experience in cross-border enterprises. Placing Given the Group s expected continued rapid expansion in India and abroad, the Company has raised 2.3 million in order to rebase the capital structure to better reflect the Group s current geographical and market positioning. The funds will be used to reduce dependence on expensive working capital facilities and shift towards a combination of equity and term debt funding. Following the Placing, the Group will have additional flexibility to execute on its growth plan and, where appropriate, to seek to accelerate growth further through acquisitions and investment in organic growth opportunities. Outlook The strong momentum achieved during the period reflects the Company s ability to win new contracts across all parts of the business. Our underlying performance was especially pleasing and is somewhat hidden by the strong performance of our acquired businesses. We are focused on becoming a global business operating in
multiple geographic regions and are excited by the potential to further extend our reach. As such, the Placing will provide us with the flexibility to pursue a variety of growth opportunities. Our existing operations provide a solid foundation for continued growth as we continue to benefit from high levels of visibility thanks to long-term contracts and a retention rate of over 77%. We have a blue-chip client base with a growing ability to cross sell our services and, as such, we view the future with confidence. Additionally, we have a proven ability to execute acquisitions and will continue to evaluate opportunities to further consolidate our position. Furthermore, we have a strong pipeline of potential new and existing opportunities. There is significant scope for scalability across the Group's target markets and the contracts generated to date demonstrate the attraction of the enlarged Group's service offering. As such, we believe that visibility will continue to improve throughout remainder of the year and we very much look forward to updating the market with further developments in due course. Manjit Rajain Chairman 28 December 2016 The unaudited interim financial statements will be available on the Company s website: www.morticegroup.com.
Unaudited condensed consolidated statement of financial position (All amounts in United States Dollars, unless otherwise stated) As at As at As at 30 September 2016 (Unaudited) 30 September 2015 (Unaudited) 31 March 2016 (Audited) Assets Non-current Goodwill 10,581,058 14,396,982 10,778,246 Other intangible assets 7,206,711 369,911 8,359,658 Property, plant and equipment 3,789,481 3,223,707 3,450,121 Long-term financial assets 1,207,497 924,672 834,012 Deferred tax assets 543,549 1,900,718 615,036 Other non-current assets 271,896 214,966 261,256 Non-current assets 23,600,192 21,030,956 24,298,329 Current Inventories 462,137 3,273,451 400,441 Trade and other receivables 38,647,697 30,076,751 35,634,965 Current tax assets 2,845,682 2,281,008 2,899,652 Cash and cash equivalents 2,800,059 1,899,289 1,610,019 Current assets 44,755,575 37,530,499 40,545,077 Total assets 68,355,767 58,561,455 64,843,406 Equity and liabilities Equity Share capital 13,068,612 14,097,313 13,068,612 Reserves 2,343,349 327,331 1,135,160 15,411,961 14,424,644 14,203,772 Non-controlling interests 2,457,385 30,764 1,908,608
Total equity 17,869,346 14,455,408 16,112,380 Liabilities Non-current Employee benefit obligations 1,648,927 1,082,252 1,371,442 Other liabilities 757,000 Borrowings 5,119,845 8,572,062 5,883,873 Non current liabilities 6,768,772 10,411,314 7,255,315 Current Trade and other payables 30,871,355 25,866,325 30,557,794 Employee benefit obligations 524,132 666,625 Borrowings 12,322,162 7,828,408 10,251,292 Current liabilities 43,717,649 33,694,733 41,475,711 Total liabilities 50,486,421 44,106,047 48,731,026 Total equity and liabilities 68,355,767 58,561,455 64,843,406 The annexed notes form an integral part of and should be read in conjunction with these financial statements.
Unaudited Consolidated statement of profit or loss and other comprehensive income (All amounts in United States Dollars, unless otherwise stated Income Six months ended Six months ended 30 September 2016 30 September 2015 (Unaudited) (Unaudited) Service revenue 91,184,497 51,024,435 Gains from financial liabilities measured at fair value a athrough profit or loss 489,228 - Other income 241,791 166,980 Total income 91,915,516 51,191,415 Expenses Staff and related costs 77,978,675 45,462,400 Materials consumed 4,123,289 1,222,048 Other operating expenses 4,278,391 3,215,415 Depreciation and amortization 1,145,196 380,969 Finance costs 1,315,918 597,003 Total expenses 88,841,469 50,877,835 Profit before taxation 3,074,047 313,580 Tax expense 1,160,755 406,057 Profit for the period 1,913,292 (92,477) Other comprehensive income: Items that will be reclassified subsequently to profit or loss Exchange difference on translating foreign operations (156,326) (541,758) Total comprehensive income for the year net of tax 1,756,966 (634,235) Profit for the period attributable to: - Owners of the parent 1,478,826 (96,852) - Non-controlling interest 434,466 4,375 1,913,292 (92,477) Total comprehensive income attributable to: - Owners of the parent 1,208,189 (635,878) - Non-controlling interest 548,777 1,643 1,756,966 (634,235) Earnings per share: Basic and diluted 0.03 (0.00) The annexed notes form an integral part of and should be read in conjunction with these financial statements.
Unaudited Consolidated statement of changes in equity (All amounts in United States Dollars, unless otherwise stated) Equity Capital Exchange translation reserve Retained earnings Total attributable to owners of the parent Noncontrolling interest Total equity Balance as at 1 April 2016 Profit for the period Other comprehensive income: -Exchange differences on translating foreign operations Total comprehensive income for the period Balance as at 30 September 2016 Balance as at 1 April 2015 Issue of share capital Profit for the period Other comprehensive income: -Exchange differences on translating foreign operations Total comprehensive income for the period Balance as at 30 September 2015 13,068,612 (3,598,396) 4,733,556 14,203,772 1,908,608 16,112,380 - - 1,478,826 1,478,826 434,466 1,913,292 - (270,637) - (270,637) 114,311 (156,326) - (270,637) 1,478,826 1,208,189 548,777 1,756,966 13,068,612 (3,869,033) 6,212,382 15,411,961 2,457,385 17,869,346 9,555,312 (3,193,804) 4,157,013 10,518,521 29,121 10,547,642 4,542,001 - - 4,542,001-4,542,001 - - (96,852) (96,852) 4,375 (92,477) - (539,026) - (539,026) (2,732) (541,758) - (539,026) (96,852) (635,878) 1,643 (634,235) 14,097,313 (3,732,830) 4,060,161 14,424,644 30,764 14,455,408
Unaudited Consolidated statement of cash flows (All amounts in United States Dollars, unless otherwise stated) Six months ended Six months ended 30 September 2016 30 September 2015 (Unaudited) (Unaudited) (A) Cash flow from operating activities Profit before taxation 3,074,047 313,580 Adjustments for: Depreciation and amortization 1,145,196 380,969 Interest expense 1,315,919 597,003 Interest income (24,486) (13,567) Gains from financial liabilities measured at fair value through profit or loss (489,228) - Impairment of trade receivables 164,906 208,598 Other adjustments 10,067 (16,112) Operating profit before working capital changes (Current and non- current) 5,196,421 1,470,471 Increase in trade and other receivables (3,316,202) (2,367,762) (Increase)/decrease in inventories (62,134) 79,622 Increase in trade and other payables 954,966 688,403 Cash generated from operations 2,773,051 (129,266) Income tax paid (527,394) (731,476) Net cash used in operating activities 2,245,657 (860,742) (B) Cash flow from investing activities Acquisition of plant, property and equipment (904,083) (349,824) Withdrawal/(purchase) of fixed deposits (355,719) 94,383 Purchase consideration paid on business acquisition - (4,317,053) Acquisition of other intangible assets (8,257) (118,714) Deposit for purchase of property (11,868) (12,941) Proceeds from sale of plant, property and equipment 5,731 18,574 Interest received 14,371 230,270 Net cash used in investing activities (1,259,825) (4,455,305) (C) Cash flows from financing activities Repayment of finance lease obligation (1,001,300) (105,495) Proceeds from Long term borrowings 325,050 - Movement in short term borrowings (net) 2,180,218 7,634,516 Interest expenses (1,366,561) (806,750) Net cash generated from financing activities 137,407 6,722,271 Net increase in cash and cash equivalents 1,123,239 1,406,224 Cash and cash equivalents at the beginning of the period 1,610,019 539,204 Effect of change in exchange rate on cash and cash equivalents 66,801 (46,139) Cash and cash equivalents at the end of the period 2,800,059 1,899,289
Notes to the unaudited condensed interim financial statements 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 together with its subsidiaries (hereinafter, together referred to as 'the Group') is engaged in providing services such as guarding services, facilities management services, mechanical and engineering maintenance services, installation of safety equipment and sale of such equipment. The Group's operations are spread across India. The various entities comprising the Group have been defined below. Name of subsidiaries Held by Mortice Limited Tenon Facility Management India Private Limited (formally Tenon Property Services Private Limited) Country of incorporation Effective group shareholding (%) India 99.48 Tenon Facility Management UK Limited United Kingdom 100 Tenon Facility Management Singapore Pte Limited Singapore 100 Tenon Property Services Lanka Private Limited Sri Lanka 100 Held by Tenon Facility Management India Private Limited (formally Tenon Property Services Private Limited) Peregrine Guarding Private Limited ( PGPL ) India 100 Tenon Support Services Private Limited ( Tenon Support ) India 100 Tenon Project Services Private Limited ( Tenon Project ) India 100 Roto Power Projects Private Limited ( Roto ) India 99.95 Soteria Command Centre Private Limited ( Soteria ) India 100 Held by Tenon Facility Management UK Limited Office and General Group Limited United Kingdom Held by Tenon Facility Management Singapore Pte Limited Frontline Securities Pte Limited Singapore 51 100 These unaudited condensed consolidated financial statements were approved by the Board on. The immediate and ultimate holding company is Mancom Holdings Limited, a company incorporated in British Virgin Islands. 2. Basis of preparation These condensed consolidated interim financial statements are for the six months ended 30 September 2016 have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union (EU), 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 2016.
The functional currency of the entities within the Group (other than the subsidiaries in Sri Lanka & United Kingdom) is Indian Rupees ( INR ). The functional currency of subsidiary in Sri Lanka is Sri Lankan Rupees & in United Kingdom is GBP. The Company has a functional currency of United States Dollars ( US$ ). The group s management has chosen to present the consolidated financial information in US$, the functional currency of the Company. 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. 3. Significant accounting policies The interim financial statements have been prepared in accordance with the accounting policies adopted in the Group's most recent annual financial statements for the year ended 31 March 2016. 4. Estimates When preparing the interim financial statements, management undertakes a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgments, estimates and assumptions made by management, and will seldom equal the estimated results. The judgments, estimates and assumptions applied in the interim financial statements, including the key sources of estimation uncertainty were the same as those applied in the Group's most recent annual financial statements for the year ended 31 March 2016. 5. Segmental reporting 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 service offered by Group. The reportable segments identified by the group are: guarding services and facility management services. The revenue and profit generated by each of Group s business segments are summarized as follows: 1 April 2016 to 30 September 2016 Guarding Facility Management Others Revenue From external customers 48,475,849 42,533,777 174,871 91,184,497 Segment operating profit 2,348,944 601,681 (23,716) 2,926,908 Total segment assets 31,889,726 16,433,119 916,603 49,239,448 Total segment liabilities 23,583,005 17,581,664 1,726,675 42,891,344 Total 1 April 2015 to 30 September 2015 Revenue Guarding Facility Management Others Total
From external customers 34,523,975 16,462,756 37,704 51,024,435 Segment operating profit 1,193,948 (86,985) (101,683) 1,005,280 Total Segment assets 24,449,324 26,391,136 428,094 51,268,554 Segment liabilities 17,516,322 17,423,246 1,104,889 36,044,457 The totals presented for the Group s operating segments reconciliation to the Group s key financial figures presented in its consolidated financial statements are as follows:
September 2016 September 2015 Segment assets 49,239,448 51,268,554 Reconciling items: Other assets unallocated 19,116,319 7,292,901 Total assets 68,355,767 58,561,455 Segment liabilities 42,891,344 36,044,457 Reconciling items: Other liabilities unallocated 7,595,077 8,061,590 Total liabilities 50,486,421 44,106,047 Six months ended Six months ended 30 September 2016 30 September 2015 Segment operating profit before tax 2,926,908 1,005,280 Reconciling items: Other income not allocated 731,019 166,980 Other expense not allocated (Mortice Limited) (583,880) (858,680) Profit before tax 3,074,047 313,580 6. Property, plant and equipment - The acquisitions of property, plant and equipment, for the six months ended 30 September 2016 are US$ 894,682 (six months ended 30 September 2015 excluding property, plant and equipment acquired under business combination: US$ 373,358 and for the twelve months ended 31 March 2016 are US$ 1,120,106 excluding property, plant and equipment acquired under business combination). 7. Earnings per share Both basic and diluted earnings per share have been calculated using the profit or loss attributable to shareholders of Mortice Limited as the numerator. Calculation of basic and diluted profit per share is as follows: Six months ended 30 September 2016 Six months ended 30 September 2015 Earnings attributable to equity holders (US$) 1,478,826 (96,852) Weighted average number of ordinary shares outstanding for basic & diluted earnings per share 50,700,001 48,109,837 Basic and diluted earnings per share (US$) 0.03 (0.00) *rounded off to two decimal places. 8. RELATED PARTY TRANSACTIONS A. Related party relationship
Disclosure of Related parties and relationship between the parties: Ultimate Holding Company Mancom Holdings Limited Entities on which KMP exercise significant influence: Peregrine Services Private Limited (where transaction occurred) Micro Azure Computers Private Limited Peregrine Protection Services Private Limited Key Management Personnel (KMP s) Manjit Rajain Rajan Oberoi Sangram Dhar Relative of Key Management Personnel Angad Rajain Related parties key management and entities in which the key management has interest or control. Significant related party transactions, other than those disclosed elsewhere in the financial statements, are as follows: Transaction with key management: September Particulars 2016 2015 US$ US$ Remuneration - short-term benefits 336,839 446,669 Remuneration - post employment benefits 17,497 - The outstanding balance payable to related parties under the category of key management as at 30 September 2016 and 30 September 2015 is US$ 51,119 and US$ 47,115 respectively. These have been included under salaries payable under Note 16. 2016 2015 The Group US$ US$ Key management personnel and their relatives Office rental paid to key management personnel 127,022 99,406 Advance rent paid to key management personnel 59,131 - Deposits given to key management personnel 63,007 63,886 Sponsorship fees paid to relative of key management personnel 52,768 - Loan given/(taken) to key management personnel 19,611 9,793 Receivable from key management personnel 63,007 53,437 Entities over which key management are able to exercise control: Deposits given to related party - 65,412 Operating expenses paid on behalf of related party 33,694 (7,757) 18,037 137,187 Recovery of advances from related party Office rental paid to related party 57,366 - Commission paid to related party 17,178 17,904 Receivable from related party 160,498 151,934 9 FINANCIAL INSTRUMENTS (Financials assets and liabilities measured at amortised cost) Fair values
The carrying amount of financial assets and liabilities with a maturity of less than one year is assumed to approximate their fair values. However, the Group and the Company do not anticipate that the carrying amounts recorded at financial position date would be significantly different from the values that would eventually be received or settled. The carrying amounts of assets and liabilities presented in the statement of financial position relates to the following categories of assets and liabilities: September 2016 2015 US$ US$ Non-current assets Loans and receivables Restricted cash 1,207,457 924,672 Current assets Loans and receivables Trade and other receivables 37,701,667 29,434,783 Related party receivables 148,602 153,155 Cash and cash equivalents 2,800,059 1,899,289 Total financial assets 41,857,785 32,411,899 Non-current Liabilities Finance lease obligations, excluding current portion 542,316 159,218 Long-term borrowings, excluding current portion 4,577,529 8,412,844 Current liabilities Trade payables and other payables 20,422,179 20,321,070 Bank overdraft 5,825,806 5,604,242 Current portion of finance lease obligations 379,281 103,256 Current portion of long term borrowing 6,117,075 2,120,911 Total financial liabilities 37,864,186 36,721,541