We use EBITDA as a measure of operating performance to assist in comparing performance from period to period on a consistent basis, as a measure for planning and forecasting overall expectations, for evaluating actual results against such expectations and as a performance evaluation metric, including as part of assessing and administering our executive and employee incentive compensation programs. We believe that the use of EBITDA as a non-IFRS measure facilitates investors’ assessment of our operating performance from period to period and from company to company by backing out potential differences caused by variations in items such as capital structure (affecting relative finance or interest expenses), the book amortization of intangibles (affecting relative amortization expenses), the age and book value of property and equipment (affecting relative depreciation expenses). We also present this non-IFRS measure because we believe it is frequently used by securities analysts, investors and other interested parties as measure of the financial performance of companies in our industry.

We present adjusted net working capital and net debt because we believe these measures provide additional metrics to evaluate our operations and, when considered with both our IFRS results and the reconciliation to working capital and total current and non-current debt, respectively, provide a more complete understanding of our business than could be obtained absent this disclosure. We also believe that these non-IFRS financial measures are useful to investors in assessing the operating performance of our business after reflecting the adjustments described above.

The following is a reconciliation of profit after tax to EBITDA:
 

(Amounts in USD)
 

Six months ended September 30, 2013
 

Six months ended September 30, 2012
 

Three months ended September 30, 2013
 

Three months ended September 30, 2012
Profit after tax $ 13,626,380   $ 6,576,346   $ 6,279,684   $ 3,304,492
Add: Income tax expense 4,960,365 2,366,989 2,703,828 1,165,074
Add: Finance costs (net of finance income) 9,016,300 10,479,828 4,637,755 5,250,495
Add: Depreciation and amortization   951,200   937,322   462,317   476,424
EBITDA   $ 28,554,245   $ 20,360,485   $ 14,083,584   $ 10,196,485
 

The following is a reconciliation of working capital (total current assets minus total current liabilities) and adjusted net working capital:
 

(Amounts in USD)
   

As at September 30, 2013
   

As at March 31, 2013
Current assets:  
Inventories $ 165,721,767 $ 181,459,799
Trade receivables 69,539,435 66,792,434
Derivative financial instruments - 1,260,512
Prepayments 14,397,890 8,386,856
Other current assets 11,327,101 10,856,050
Cash and cash equivalents     46,221,446     33,270,338
Total current assets   $ 307,207,639   $ 302,025,989
 
Current liabilities:
Trade payables $ 22,057,765 $ 4,516,657
Debt 145,464,894 156,785,820
Current tax liabilities (net) 3,364,637 2,658,236
Derivative financial instruments (liability) 8,382,917 -
Other current liabilities     3,972,241     5,393,803
Total current liabilities   $ 183,242,453   $ 169,354,516
 
Working Capital as per IFRS (Total current assets minus Total current liabilities) $ 123,965,185 $ 132,671,473
Less: Cash and cash equivalents 46,221,446 33,270,338
Add: Current debt     145,464,894     156,785,820
Adjusted net working capital   $ 223,208,633   $ 256,186,955
 

The following is a reconciliation of total current and non-current debt to net debt:
 

(Amounts in USD)
   

As at September 30, 2013
   

As at March 31, 2013
Current debt $ 145,464,894   $ 156,785,820
Non-current debt     3,318,723     4,831,416
Total current and non-current debt as per IFRS $ 148,783,617 $ 161,617,236
Less: Cash and cash equivalents     46,221,446     33,270,338
Net debt   $ 102,562,171   $ 128,346,898

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