Half Yearly Report

24 March 2011

Tejoori Limited

("Tejoori" or the "Group")

Interim results for the six months ended 31 December 2010

Chairman's statement

We are pleased to present Tejoori's interim results for the six month period ending 31 December 2010.

We are pleased to report that, despite facing continuing difficult market conditions in the period under review, Tejoori has achieved an improved operating performance compared to the six months ended 30 June 2010 as a result of a well-executed strategy. We have directed our recent efforts into moving the Company towards profitability.

Financial performance during the period

For the six months to 31 December 2010 the Group achieved a net profit of US$ 337,672 (six months to 31 December 2009, loss of US$ 14.9 million). Earnings per share at 31 December 2010 were US$ 0.012 (31 December 2009, loss per share of US$ 0.54 per share) and cash available for investment stood at US$ 5.77 million, or US$ 0.208 per share (31 December 2009, US$ 6.32 million). The Directors are confident of Tejoori's growth prospects going forward.

Investment activity during the period

As announced by the Company on 8 December 2010, Tejoori entered into an agreement on 7 December 2010 to dispose of its investment in M/s Al Manafeth Real Estate Development & Trading Company, the owner of a parcel of land in Saudi Arabia, for a cash consideration of SAR 11 million (equivalent to US$2.93 million). SAR 8 million of the cash proceeds were received on completion and SAR 3 million was received by Tejoori on 15 December 2010. The disposal represented a gain of 10 per cent for Tejoori on the initial investment. The Board intends to use the net proceeds from this disposal to make further investments in line with the Company's investment strategy.

Future investment opportunities

The Company is currently evaluating various potential investment opportunities to strengthen Tejoori's portfolio and maximize potential returns for its shareholders. As a part of the Company's investment strategy, we are looking to identify investments in certain profitable operating companies, through equity participation. The Board will consider both long term and short term investment options.

Outlook

The Board view 2011 with a positive outlook and hope to be able to continue to improve the Company's performance. Any future investments by Tejoori will be made with a view to strengthening the Company's investment portfolio and achieving higher potential returns for shareholders. Tejoori is today in a more competitive position than in previous periods and the Board views the future with confidence.

Khalid Al NasserChairman of the Board

Tejoori Limited23 March 2011

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Statement of financial position

Statement of Comprehensive Income

For the six months ended December 31, 2010

Statement of Cash Flows

For the six months ended December 31, 2010

Selected notes to the Financial Statements for the six months ended December 31, 2010

1. Establishment and operations

Tejoori Limited ("the company") is a self-managed closed-ended investment company incorporated and domiciled in the British Virgin Islands. The registered address of the company is PO Box 173, Kingston Chambers, Road Town, Tortola, British Virgin Islands.The principal activity of the company is that of an investment company which invests in Shari'a compliant ventures worldwide.

2. Basis of presentation of financial statements

The interim condensed financial information is prepared in accordance with International Accounting Standard ("IAS") 34 "Interim Financial Reporting". The interim condensed financial information is prepared under the historical cost convention as modified by the revaluation of available-for-sale financial assets.

The accounting policies applied in the preparation of the interim condensed financial information are consistent with those applied in the annual financial statements for the year ended  June 30, 2010.

Costs that occur unevenly during the financial year are anticipated or deferred in the interim condensed financial information only if it would also be appropriate to anticipate or defer such costs at the end of the financial year.

The interim condensed financial information should be read in conjunction with the year ended June 30, 2010 financial statements. 

3. Cash and Bank balances

Cash and cash equivalents

For the purpose of cash flow statement, cash and cash equivalents consists of:

4. Trade and other receivables

5. Available-for-sale investment

The available-for-sale investment at 31 December 2010 represents an unquoted investment in the BEKON Group. During the year ended 30 June 2007, the company entered into an agreement to invest up to EUR 6 million to acquire a 16.7% equity interest in the BEKON Group, the holding company of a group focused on the development, construction, marketing and operation of biogas, energy and waste treatment plants. In accordance with the agreement, the company was to inject up to EUR 3 million to buy-out an existing shareholder and inject an additional EUR 3 million in equity to meet the global expansion and working capital needs of the BEKON Group. 

The company's investment in BEKON Group is carried at its cost of USD 8,019,715 (30 June2010: USD 8,019,715) since it is impracticable to reliably assess its fair value. 

6. Advance towards acquisition of investment property

The advance towards acquisition of investment property at 31 December 2010 represents the deposit and premium paid on two plots of land. The commitment outstanding at 31 December 2010 relating to the acquisition of these plots of land is USD 36 million (30 June 2010: USD 36 million).

The total amount paid for two plots is USD 16,731,449/-. A revaluation gain of USD 6,031,846 was recorded in 2007 on the carrying value. During the year 2009 an impairment loss of USD 6,828,989 has been recorded on the carrying value and again during the year 2010 an impairment loss of USD 11,548,248 has been recorded on the carrying value .

7. Due to shareholders

In accordance with the company's placement document, the shareholding of individual investors cannot exceed eight percent of the issued and fully paid share capital. Funds received from shareholders in excess of eight percent limit are refundable to the investors unless the company is able to secure additional capital from the other shareholders. 

8. Trade and other payables

9. Share capital

The authorized share capital of the company comprises 1 billion shares of USD 0.01 each (30 June 2010: 1 billion 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 (30 June 2010: 27,708,864 shares of USD 0.01 each).

Share warrants

On 16 September 2006, the company granted share warrants to employees, directors and a company that provide services to the company. The exercise price of the granted warrants is USD 1. The options should be exercised on or before the date falling five years from the grant date. The company has no legal or constructive obligation to repurchase or settle the share warrants in cash. 

No share warrants were issued and exercised during the period under review and the number of share warrants outstanding at 31 December 2010 is 2,740,000 (30 June 2010: 2,740,000). The fair value of theshare warrants on grant date was based on the fair value of the company's shares of about USD 1.50 per share on that date.  

10. General and administrative expenses

11. Earnings per share

The  basic  earnings  per  share  is  calculated  by  dividing  the  net  profit  attributable  to shareholders by the weighted average number of ordinary shares inissue during the period.

Diluted

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. Thecompany has one category of dilutive potential ordinary shares: share warrants. For the share options, a calculation is made in order to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the company's shares) based on the monetary valueof the subscription rights attached to outstanding share warrants. The number of shares calculated as above iscompared with the number of shares that would have been issued assuming the exercise of the share warrants.

12. Related party transactions and balances

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