Half Yearly Report

27 March 2014

Tejoori Limited

("Tejoori" or the "Company")

Interim results for the six months ended 31 December 2013

Chairman's Statement

Welcome to the results of Tejoori Limited ("Tejoori" or the "Company"), the Dubai-based Shari'a compliant investment company, for the six month period ending 31 December 2013.

Financial Performance during the Period

As at 31 December 2013, the Company had cash available for investment of USD 4,058,090 (31 December 2012: USD 5,066,829). As at 31 December 2013, USD 4,047,684 of the cash available for investment was placed on short term wakala deposits which carry a profit rate of 5 per cent per annum. During the period under review Tejoori generated income of USD 219,746 from these wakala deposits (six months ended 31 December 2012: USD 55,394) and a net profit of USD 89,175 (six months ended 31 December 2012: net profit of USD 10,164).

Successful Reduction in Company's Liabilities

As announced on 17 December 2012, Tejoori had successfully entered into settlement agreements to cancel the sale and purchase agreements with regards to its investment in the Lagoons Plots Development in Dubai. At the same time Tejoori also entered into an agreement to acquire 3 replacement plots of land in Dubai Land, namely the Arjan Plots. Under these arrangements, the final consideration payable by the Company was USD 1.92 million over a period of 18 months. The final payment of approximately USD 320,000 was paid by Tejoori in February 2014 and the Group does not hold any further liability towards the acquisition of the Arjan Plots. The title deed for the third Arjan Plot is expected to be granted in the Company's name shortly.

Future Strategy & Investments

No new investments were made in the period by Tejoori. With regards to the Arjan Plots, the Board is considering various strategic options for the investment which could include the development of the plots with real estate developers in the UAE or selling them undeveloped to a third party. The options are still under review by the Board and we will share the outcome with our shareholders shortly. The Company also retains a 10.1 per cent. equity interest in the BEKON Group, a business focused on the development, construction, marketing and operation of biogas, energy and waste treatment plants.

Outlook

With the reduced cost base, the settlement of the liabilities in relation to the Lagoons Plots and the fully acquired properties in Arjan, the Board remains confident on the prospects for the company moving forward.

Khalid Al NasserChairman of Board

For further information:

Consolidated Statement of Financial Position

as at December 31, 2013

These financial statements were approved for issue by the Board of Directors of the company on 26 March 2014 and signed on its behalf by:

________________ ________________

Director Director

Consolidated Statement of comprehensive income

as at December 31, 2013

Statement of changes in shareholders' equity

Statement of cash flows

Notes to the Financial Statements for the Six Months ended 31 December 2013

1 Cash and bank balances

2 Wakala Deposits

Cash at bank and investment in Wakala deposits are placed with reputable corporates based in the United Arab Emirates. The Wakala deposits carried a profit rate of 5%.

3 Trade and other receivables

The Group had invested a total of Euro 1.5 million (USD 1.7 million) in a joint venture with Martin Hage for the development of an innovative Safety system for motor vehicles designed to significantly improve vehicular safety standards. The advance is considered to be irrecoverable and had been written off.

4 Other Assets

5 Available-for-sale investment

The available-for-sale investment represents 10.1% (31 December 2012 : 12.67%) investment in Bekon Holding AG.

6 Advance towards acquisition of investment property

During the year ended 30 June 2007, the Group made advance payments towards acquisition of three plots of land in the Lagoon project in Dubai, United Arab Emirates. On 26 October 2008, the Group entered into a contract to sell its interest in one of its plots, Lagoons plot 3, for USD 12.6 million.

A settlement agreement, effective 9 December 2012, was signed between Lagoons LLC and the Group. The original plot sale and purchase agreement was terminated and, in exchange, the amount paid by the Group for the plots of land in Lagoons was applied against the purchase of new plots in the Arjan project in Dubai, United Arab Emirates.

As at 31 December 2013 the Group has a payable of USD 0.7 million against one plot in the Arjan project, which is held for the beneficial interest of a third party as security against a receivable of USD 3.7 million.

The Group has made full payment and holds title deeds for two plots in the Arjan project. In accordance with the Group's accounting policies the advance payments towards acquisition of investment property has been reclassified as investment property.

7 Investment in property

During the year ended 30 June 2013 an amount of USD 10.5 million was transferred from 'Advances towards acquisition of investment property' to 'Investment property'. The investment property pertains to two plots of land in the Arjan project, Dubai, United Arab Emirates.

The fair value of the investment property is USD 15.1 million. 

8 Property and equipment

9 Due to a shareholder

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. This balance represents funds received from a shareholder in excess of the eight percent limit and is refundable to the investors unless the company is able to secure additional capital from the other shareholders.

10 Trade and other payables

11 Share capital

The authorised share capital of the Company comprises 1 billion shares of USD 0.01 each (2012: 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 (2012: 27,708,864 shares of USD 0.01 each).

11.1 Share premium

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

12 Revenue

13 Administrative and other operating expenses

14 Earnings 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.

15 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 year, the company entered into significant transactions with related parties in the ordinary course of business. In addition to the disclosure in note 1, following are the other transactions and balances arising from these transactions:

Related party balances are profit fee and payable/receivable on demand.

16 Legal status and principal activities

Tejoori Limited ("the Company") and its subsidiaries (together, "the Group") are self-managed investment companies.

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.

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 property.

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 the advanced payments against these plots transferred against the purchase price of three plots of land in the Arjan project in Dubai, United Arab Emirates

Tejoori Environmental M.E. Limited, Lagoons Plot 1 Limited, Lagoons Plot 2 Limited and Lagoons Plot 3 Limited are under dissolution.