TIDMOPG
RNS Number : 8741X
OPG Power Ventures plc
14 December 2010
14 December 2010
OPG Power Ventures PLC
("OPG", the "Company" or the "Group")
Unaudited Half-Year Results for the Six Months to 30th September
2010
OPG Power Ventures PLC, the developer and operator of Group
Captive power plants in India, is pleased to announce its unaudited
half-year results for the six months ended 30th September,
2010.
Financial Highlights
-- Revenue up 56% to GBP 8.95 million.
-- Earnings per share up 108 % to 0.80 pence.
-- Second six months to 31 March 2011 to benefit from the full
contribution of the 77 MW unit.
Operational Highlights
-- Current Group Captive Power Plants with capacity of 107 MW
now on-line
-- Group Captive development projects of 377 MW (2x150 MW Kutch
and 77 MW Chennai brownfield) - land acquired, environmental
approvals, coal linkages and funding in place and now in
construction phase.
-- Chennai Phase III: two further brownfield 80 MW units
approved for commissioning in 2013 with land acquired and coal
linkages achieved. Site work to commence in first quarter 2011.
-- On track to achieve aggregate capacity of 644 MW by 2013.
Further plans for 600 MW of expansion projects in pipeline, to
attain 1250 MW capacity by 2015.
Commenting on the results, Mr. M. C. Gupta, Chairman, said:
"With the smooth functioning and operation of its first 77 MW unit,
OPG has demonstrated it can deliver greenfield power projects on
budget. The successful delivery of its first major project is a
milestone for any major project development business and OPG has
further demonstrated that the model it has pursued provides the
Company with access to industry-leading margins. With the other
projects that the Company set out in its plans at IPO well under
way and on schedule, OPG is on course to deliver the 377 MW of
operational capacity planned at that time.
"With this backdrop, your Board believes it is the right time
for OPG to further increase its servicing of the growing demand for
power in India. Accordingly, the Board has approved and commenced
projects to raise the Company's generation capacity to 644 MW by
2013 with plans to achieve 1 250 MW by 2015. The market for power
in India continues to be one of rising demand unmatched by
equivalent capacity additions, conditions that are expected to
persist over the next several years. OPG remains uniquely
positioned to benefit from this buoyant outlook and it will
continue to be your Board's mission to realize this potential
through the implementation of well conceived projects."
For further information, please visit www.opgpower.com or
contact:
OPG Power Ventures Plc
Arvind Gupta (Chief Executive) +91 (0) 44 429
11 222
Narayan Swami (Finance Director) +91 (0) 44 429
11 214
Cenkos Securities (Nominated Adviser +44 (0) 20 7397
& Broker) 8900
Stephen Keys/ Camilla Hume
Tavistock Communications +44 (0) 20 7920
3150
Simon Hudson
About OPG Power Ventures PLC
OPG Power Ventures plc ("OPG") was established in 2004 with the
goal of providing reliable and cost effective power to Industry. In
the last few years OPG has consolidated its position as a private
producer of power serving industry in the state of Tamil Nadu. OPG
is presently implementing plans that will build for the group
additional power generation capacity with significant presence in
the industrialised state of Gujarat and expanded operations in
Tamil Nadu. OPG is committed to building and maximizing shareholder
value by being the first choice provider of reliable, continuous,
uninterrupted power supply at competitive rates to leading
industries across India. In pursuing this objective, OPG builds and
operates Group Captive Power plants of medium size, up to 500 MW,
each plant serving groups of customers in select industrial belts
and maintain the highest standards of environmental conformity and
operating efficiency. In delivering this service, OPG aims to
operate as an efficient, low cost producer maintaining the highest
technical standards and to exceed the norms prescribed by the
environmental regulations. OPG also intends to play an increasingly
significant role in the buoyant spot / merchant power markets which
enable attractive prices to be realised for a part of its power
output.
Disclaimer
This announcement does not constitute or form part of any offer
or invitation to sell or issue, or any solicitation of any offer to
purchase or subscribe for any securities. The making of this
announcement does not constitute a recommendation regarding any
securities. Certain statements, beliefs and opinions contained in
this announcement, particularly those regarding the possible or
assumed future financial or other performance of OPG, industry
growth or other trend projections are or may be forward looking
statements. Forward-looking statements can be identified by the use
of forward-looking terminology, including the terms "believes",
"estimates" "anticipates", "expects", "intends", "plans", "goal",
"target", "aim", "may", "will", "would", "could" or "should" or, in
each case, their negative or other variations or comparable
terminology. These forward looking statements include all matters
that are not historical facts. By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the
future and may be beyond OPG's ability to control or predict.
Forward-looking statements are not guarantees of future
performance. No representation is made that any of these statements
or forecasts will come to pass or that any forecast result will be
achieved. Neither OPG, nor any of its associates or directors,
officers or advisers, provides any representation, assurance or
guarantee that the occurrence of the events expressed or implied in
any forward-looking statements in this announcement will actually
occur. You are cautioned not to place undue reliance on these
forward-looking statements. Other than in accordance with its legal
or regulatory obligations, OPG is not under any obligation and OPG
expressly disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
No statement in this announcement is intended as a profit
forecast or a profit estimate and no statement in this announcement
should be interpreted to mean that earnings per OPG share for the
current or future financial years would necessarily match or exceed
the historical published earnings per OPG share.
Chief Executive's Review
I am pleased to be able to report that this half year we made
considerable progress in respect of OPG's operations and growth
plans that provides OPG with a strong, cash generative platform for
further growth.
Delivery of IPO Strategy
377 MW Generation Capacity
This half year has seen significant milestones achieved in the
pursuit of our plans set out at the time of our IPO. Our 19.4 MW
gas fired power plant and the 10 MW Waste Heat Recovery plant
performed satisfactorily and in addition, we commissioned and
stabilized our 77MW coal fired unit at Chennai (Chennai Phase I). A
more detailed commentary for each of these plants is set out
below.
19.4 MW and 10 MW plants
We are pleased that gas pressure at our 19.4 MW gas fired power
plant has reverted to its former levels. This has enabled the plant
to operate at about 85% capacity since August and we expect the
plant to continue to operate at this level. The 10 MW Waste Heat
Recovery plant, now in its third year of operation, has also
performed well during this period.
77MW unit at Chennai (Phase I)
Our 77 MW coal fired unit operated by Tata Power Company, was
commissioned in April. The plant achieved stabilized output during
August and we are pleased to report that it has since been
operating at an average output level in excess of 80%. In September
we secured a contract, with the Tamil Nadu Electricity Board for
the supply of up to 60 MW of power until 31 May 2011 at an average
price of 5.10 per KWh. In addition to this we also have short-term
contracts with industrial customers at prices up to Rs. 6 per
KWh.
The second half of FY11 is expected to benefit from a full
contribution from this 77 MW unit. Consolidated (unaudited) Group
turnover for the two months since 30th September is in excess of
GBP8 million and given that monthly realizations receivable under
the contract with the state utility are higher in the ongoing six
month period, we remain on course to attain expected levels of
performance for the full year 2010-11.
2x150 MW unit in Gujarat
Construction of the 2 x 150 MW project in Gujarat has commenced
and is progressing on schedule. Deliveries of equipment will
commence in 2011 and the project is expected to be commissioned in
the first half of 2013. Tata Power Company are the Project Managers
for this development.
Pricing
At the time of our IPO we emphasized that OPG's business model
is designed to ensure that the Group achieves high unit price
realizations. During the past six months, the three operating units
have realized prices of c. Rs 4.80 per KWh. With the average
monthly rates payable under the contract with the state utility for
the 77 MW unit in Chennai being higher for the second half of the
year, the Company is on track to achieve an average unit price for
the year of c. Rs 5.00 per Kwh with corresponding margins.
Growth - realizing our potential to become a large power player
- Phase II and III projects
The six month period between April and October 2010 witnessed
India's Industrial Production growing at over 9 per cent on an
annualized basis with all major sectors of the economy performing
and manufacturing activity, demand for capital goods and consumer
durables registering strong growth rates. 3rd quarter annualized
GDP growth was 8.9 per cent.
As a result, the demands placed on India's infrastructure
continues to build at pace and it is our expectation that with
comparatively sluggish supply growth, deficits will persist for
several years. In this context, the Board has seized the
opportunity to create significant shareholder value for OPG through
building additional capacity, with an established platform, at the
Company's current sites. Accordingly, I am pleased to report we
have announced projects that increase our footprint in 2013 to 644
MW as against 377 MW planned at time of IPO besides which there are
plans to establish 1,250 MW of generation capacity by 2015.
Second 77MW unit at Chennai (Phase II)
Construction of the second 77 MW unit at the existing site in
Chennai has been initiated; site work has begun and deliveries of
equipment have commenced. The project is scheduled to be
commissioned in 2012. The similarities between this project and
that of Chennai Phase I are considerable and as a result we have
adopted the lessons from those earlier projects here. Given that
the majority of key suppliers and advisers are the same, not to
mention a consistent OPG team, this has already resulted in a
significant de-risking of these projects, which remain on-time and
on-budget.
160 MW at Chennai (Phase III)
We will be commencing site work in respect of 160 MW units in
the first quarter of 2011. Land has been acquired, firm offers of
debt and coal linkages are available and early deliveries of
equipment have been negotiated. Final environment approvals are
expected by March 2011 and we expect these additional units to be
commissioned during 2013, more or less concurrently with the Kutch
2 x 150 MW unit, thus, delivering operating capacity of 644 MW by
2013, well in excess of the 377 MW outlined at IPO.
Financial Review
Total revenue from power generation stood at GBP 8.95 million
for the period under review and net income attributable to
shareholders was GBP 2.32 million. Non-controlling interests
amounted to GBP 1.08 million.
The increase in EPS by 108% to 0.80 pence from 0.38 pence in the
previous corresponding period reflects the fact that, henceforward,
with the Group's economic interest in current growth projects being
typically 99%, the proportion of net income attributable to
shareholders should be higher than in previous periods.
Profit from continuing operations before tax, expenses relating
to projects under construction and non-recurring items was GBP 4.06
million. For the full year 2010 - 11 we expect results to benefit
from a full six months contribution from the 77 MW Chennai Phase I
unit following stabilization of that unit since mid August. Given
that monthly realizations receivable under the state utility
contract are higher in the ongoing 6 month period, OPG remains on
course to attain expected levels of contribution to earnings in
full measure for the year 2010 - 11.
Our platform has been established
With a significant project delivered, a growth platform has been
established and for this reason this is turning out to be a
transformational year for the Company. Consequently our ability to
generate cash has been strengthened and we have grown in
confidence. We have a major portfolio of growth projects under way
that should see the Company's generation capacity increase
multifold. For this significant progress, on behalf of the Board, I
would like to acknowledge the support of our shareholders and
development partners and of course the perseverance and commitment
of our team whose continued dedication enable us to look forward to
the rest of the year and beyond with confidence.
Arvind Gupta
Chief Executive
13th December 2010
CONSOLIDATD STATEMENT OF
INCOME
For the Period ended 30
September 2010
--------------------------- -------------- ----------------- ------------
Year
Six Months Six Months ended
Ended 30 Sept Ended 31 March
2010 30 Sept 2009 2010
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
--------------------------- -------------- ----------------- ------------
REVENUES
Operating Revenue 8,952,068 5,721,101 12,872,597
Cost of power generation (3,976,437) (1,648,482) (5,358,089)
-------------- ----------------- ------------
Gross Profit 4,975,631 4,072,619 7,514,508
EXPENSES
Other gains and losses 1,756,171 406,972 1,028,559
Employee costs (152,765) (65,167) (1,373,055)
Distribution Cost (428,854) (165,836) (501,021)
Other expenses (1,452,177) (452,687) (495,104)
Depreciation (410,040) (247,015) (195,461)
Financial income 489,630 932,519 1,297,504
Financial Expenses (543,927) (446,130) (654,461)
Release of negative
goodwill - - -
Pre Operative Expenses
(Relating to projects
under construction) (171,073) (513,166) (1,171,626)
Pre-tax Income / (Loss) 4,062,597 3,522,109 5,449,843
Employee share option
expenses -
Tax Expense (661,007) (802,762) (1,432,338)
Net Income / (Loss) after
taxes 3,401,590 2,719,347 4,017,505
============== ================= ============
Other Comprehensive Income
Exchange differences on
translating foreign
operations 6,497,808 3,010,783 3,010,783
Net value gain on
available for sale
financial assets, net of
taxes 56,041 (231,685) (231,685)
Other comprehensive income
/ (loss) for the year /
period, net of tax 6,553,849 2,779,098 2,779,098
Total comprehensive income
/ (loss) for the year /
period 9,955,439 5,498,445 6,796,603
Profit / (loss)
attributable to
Equity holders of parent 2,318,586 1,113,947 926,473
Non controlling interest 1,083,004 1,605,400 3,091,032
-------------- ----------------- ------------
3,401,590 2,719,347 4,017,505
============== ================= ============
Total comprehensive income
/ (loss) attributable to
Equity holders of parent (2,284,757) 3,630,086 4,136,852
Non controlling interest 768,185 2,608,304 3,679,796
(1,516,573) 6,238,390 7,816,648
Basic and diluted earnings per share for profit attributable
to the equity holders of the company during the year
(expressed as Pence per share)
Basic earnings per share 0.808 0.388 0.323
Diluted earnings per share 0.800 0.385 0.318
--------------------------- -------------- ----------------- ------------
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
As at 30 September 2010
------------------------------------ ------------
Six Months
Six Months ended Year ended
Ended 30 Sept 31 March
Sept 2010 2009 2010
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
------------------------------------ ------------ ------------
ASSETS
Non current assets
Property, plant and equipment 57,828,218 13,098,772 15,169,634
Capital Work in Progress 6,865,932 36,797,238 49,847,157
Capital advances 21,056,672 15,384,251 21,160,152
Other Assets 4,958,451 4,124,418 5,470,257
Deferred Tax Asset 39,576 - 51,505
Investment in subsidiaries - - -
Total non current assets 90,748,849 69,404,679 91,698,705
Current Assets
Inventories 4,050,953 199,161 1,867,915
Trade and other receivables 8,805,564 2,467,280 3,089,084
Current tax assets 1,571,499 335,830 2,003,214
Financial Assets 6,247,885 12,951,540 12,977,604
Other Assets 3,144,931 1,702,420 7,113,514
Cash and Cash Equivalents 17,012,201 25,626,472 14,168,453
Restricted Cash 1,407,922 1,156,388 1,481,894
Total current assets 42,240,955 44,439,091 42,701,678
Total assets 132,989,804 113,843,770 134,400,383
------------------------------------
EQUITY AND LIABILITIES
Capital and Reserves
Issued Capital 42,187 42,187 42,187
Reserves 71,887,470 68,037,683 76,490,815
Retained earnings 6,554,493 3,729,142 4,235,907
------------ ------------
Equity attributable to owners of
the Company 78,484,150 71,809,012 80,768,909
Non-Controlling Interest 8,584,957 5,447,228 7,816,771
Total Equity 87,069,108 77,256,240 88,585,680
------------ ------------
Non current liabilities
Interest-bearing loans and
borrowings 28,507,146 31,151,913 30,800,245
Other Liabilities 2,129,252 12,789 2,261,141
Deferred tax liabilities 568,654 433,556 514,235
Total non current liabilities 31,205,052 31,598,258 33,575,621
Current liabilities
Trade and other payables 10,721,346 3,283,405 6,567,099
Interest-bearing loans and
borrowings 2,576,129 1,459,705 3,882,815
Provision for Taxation 1,223,505 181,258 1,599,168
Other liabilities 194,664 64,905 190,000
Total current liabilities 14,715,645 4,989,272 12,239,081
Total liabilities 45,920,696 36,587,530 45,814,702
Total equity and liabilities 132,989,804 113,843,770 134,400,382
------------------------------------
OPG POWER VENTURES
Plc.
CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
For the period ended 30 September
2010
Equity
MTM gain Forign Settled Total
/ Currency Employee of
Share Share Share (loss) Translation Benefits Retained Parent Non-Controlling Total
GROUP Capital capital Premium on AVS reserve reserve earnings equity Interest Equity
No. GBP GBP GBP GBP GBP GBP GBP GBP GBP
------------ -------- ----------- ---------- ------------ ---------- ---------- ------------ ---------------- ------------
Opening
Balance as
at 1 April,
2009 286,989,795 42,187 66,943,323 (151,716) 2,667,855 - 3,309,434 72,811,083 3,996,285 76,807,368
Proceeds
from issue
of ordinary
shares - - - - - - - - 2,360 2,360
Profit or
Loss on
Available
for Sale
investments - - - 143,125 - - - 143,125 24,730 167,855
Profit for
the period - - - - - - 1,113,946 1,113,946 1,605,632 2,719,578
Exchange
Difference
arising on
translation
of foreign
operations - - - - (2,259,143) - - (2,259,143) (181,777) (2,440,920)
------------ -------- ----------- ---------- ------------ ---------- ---------- ------------ ---------------- ------------
- - - - - - - - - -
Balance at 30
September,
2009 286,989,795 42,187 66,943,323 (8,591) 408,712 - 4,423,380 71,809,011 5,447,230 77,256,242
- - - - - - - - - -
Opening
Balance as
at 1 April
2009 286,989,795 42,187 66,943,323 (151,716) 2,667,855 - 3,309,43 72,811,083 3,996,285 76,807,368
Proceeds
from issue
of ordinary
shares - - - - - - - - - -
Profit or
Loss on
Available
for Sale
investments - - - 48,528 - - - 48,528 7,512 56,040
Profit for
the period - - - - - - 926,473 926,473 3,091,032 4,017,505
Exchange
Difference
arising on
translation
of foreign
operations - - - - 5,775,866 - - 5,775,866 721,942 6,497,808
Share based
compesnation
costs - - - - - 1,206,959 - 1,206,959 - 1,206,959
- - - - - - - - - -
Balance at
31 March,
2010 286,989,795 42,187 66,943,323 (103,188) 8,443,721 1,206,959 4,235,907 80,768,909 7,816,771 88,585,680
Opening
Balance as
at 1 April
2010 286,989,795 42,187 66,943,323 (103,188) 8,443,721 1,206,959 4,235,907 80,768,909 7,816,771 88,585,680
Profit or
Loss on
Available
for Sale
investments - - - 30,809 - - - 30,809 - 30,809
Profit for
the period - - - - - - 2,318,586 2,318,586 1,083,005 3,401,590
Exchange
Difference
arising on
translation
of foreign
operations - - - - (4,634,153) - - (4,634,153) (314,819) (4,948,972)
Share based
compesnation
costs - - - - - - - - - -
- - - - - - - - - -
-------- ---------- ---------- ----------------
Balance at 30
September,
2010 286,989,795 42,187 66,943,323 (72,379) 3,809,568 1,206,959 6,554,493 78,484,151 8,584,957 87,069,108
------------ -------- ---------- ---------- ---------- ---------------- ------------
- - - - - - - - - -
------------ -------- ----------- ---------- ------------ ---------- ---------- ------------ ---------------- ------------
OPG POWER VENTURES Plc.
CONSOLIDATED STATEMENT OF
CASH FLOWS
For the period ended 30
September 2010
Six Months
ended Year ended
30 Sept Six Months ended 31 March
2010 30 Sept 2009 2010
------------------------
(Unaudited) (Unaudited) (Audited)
------------------------
GBP GBP GBP
------------------------ --- ------------- ----------------- -------------
Cash flows from
operating activities
Profit / Loss for the year
/ period 3,401,590 2,719,346 4,017,505
Income tax expense 661,007 802,762 1,432,338
Financial Expenses 27,275 443,827 373,359
Financial Income (537,541) (932,519) (1,251,252)
Other gains and losses (348,305) (299,812) (730,329)
Release of negative
goodwill - - -
Share based compesnation
costs - - 1,206,959
Depreciation 410,040 247,015 625,324
3,614,066 2,980,619 5,673,904
Movements in Working
Capital
(Increase) / Decrease in
trade and other receivables (5,891,265) (394,263) (1,418,191)
(Increase) / Decrease in
inventories (2,284,095) (155,059) (1,636,191)
(Increase) / Decrease in
other current assets 449,240 3,656,233 988,313
Increase / (Decrease) in
trade and other payables 3,012,854 522,288 5,139,417
Increase / (Decrease) in
Other liabilites 29,492 11,037 (10,087,192)
Cash (used in) / generated
from operations (1,069,708) 6,620,855 (1,339,940)
Interest paid (27,275) (304,062) (372,025)
Income Taxes paid, net of
refunds (545,643) (1,085,475) (1,913,470)
Net Cash Generated by /
(used in) Operating
activities (1,642,626) 5,231,318 (3,625,435)
============= ================= =============
Cash flow from
investing activites
Acquisition of property,
plant and equipment (12,624,171) (17,653,510) (29,017,680)
Sale of property, plant
and equipment - 2,431 2,493
Advances Net 15,441,450 (733,054) 17,759,978
Finance Income 409,228 454,237 1,165,040
Dividend income 207,258 406,657 944,839
Movement in restricted cash (129,575) 180,624 385,765
Net cash outflow on
acquisition of
subsidiaries (2,057,447) - (10,582,408)
Purchase of Investments
(Net of sales) 6,602,651 (4,481,787) (3,222,067)
Increase / Decrease in land
lease Deposits - - 1,260
Net cash (used) / generated
by investing activities 7,849,393 (21,824,402) (22,562,779)
============= ================= =============
Cash flows from
financing activities
Proceeds from issue of
Ordinary Shares - - - -
Proceeds from borrowings - 14,252,949 14,249,387
Repayment of borrowings (2,131,685) (3,262,273) (5,205,136)
Payment for share issue
costs - - -
Net cash provided by
financing activities (2,131,685) 10,990,676 9,044,251
============= ================= =============
Net increase / (decrease) in
cash and cash equivalents 4,075,082 (5,602,408) (17,143,964)
Cash and cash equivalents
at the beginning of the
year / period 14,168,453 32,319,842 32,319,842
Effect of Exchange rate
changes on the balance of
cash held in foreign
currencies (1,231,334) (1,090,963) (1,007,425)
------------- ----------------- -------------
Cash and cash equivalents
at the end of the year /
period 17,012,201 25,626,471 14,168,453
============= ================= =============
These Financial Statements were approved by the Board of Directors
Arvind Gupta V.Narayan Swami
Chief Executive Officer Chief Financial
Officer
OPG Power Ventures Plc.
Notes to the Consolidated Financial Statements for the period
ended 30th September 2010:
1. Group Structure:
OPG Power Ventures Plc. (the "Company" or "OPGPV") is a company
domiciled and incorporated in the Isle of Man on 17 January 2008
and was admitted to the Alternative Investment Market of London
Stock Exchange on 30 May 2008. The Company raised approximately GBP
65.10 Million at listing (before admission costs).
The Group had the following economic interest and voting power
in the following entities as on 30th September, 2010:
Economic
Immediate Country of Voting Rights Interest
Company Parent Incorporation (%) (%)
Gita Energy OPGPV Cyprus 100 100
--------------- --------------- -------------- ----------
Gita Holdings OPGPV Cyprus 100 100
--------------- --------------- -------------- ----------
OPG Power
Gujarat Private Gita Energy
Limited and Gita 29.19 43.85
(OPGPG) Holdings India 36.71 55.15
--------------- --------------- -------------- ----------
OPG Power
Generation Gita Energy
Private and Gita 35.86 49.5
Limited Holdings India 35.90 49.5
--------------- --------------- -------------- ----------
OPG Renewable Gita Energy
Energy Private and Gita 11 16.5
Limited Holdings India 11 16.5
--------------- --------------- -------------- ----------
OPG Energy
Private
Limited OPGPG India 29.78 43.78
--------------- --------------- -------------- ----------
Gita Power &
Infrastructure Gita Holdings
private Private
Limited Limited India 100 100
--------------- --------------- -------------- ----------
2. Summary of significant Accounting Policies:
a) Basis of preparation:
The consolidated, unaudited, interim financial statements of the
Group for the six months ended 30th Sept.2010 were approved by the
Board of Directors.
These interim consolidated financial statements have been
prepared in accordance with the applicable International Financial
Reporting Standards (IFRS) issued by the International Accounting
Standards Board (IASB).
The consolidated financial statements for the six months ended
30th Sept.2010, in the opinion of the Directors, present fairly the
financial position of the Group's operations and cash flows in
accordance with IFRS.
These interim consolidated financial statements are prepared on
a going concern assumption and also are predicated on the
Director's opinion that the Group is in a position to meet its
obligations at present and in the foreseeable future.
Comparative results for a corresponding period 30th Sept.2009
and for the year ended 31st March 2010 have been recategorised for
consistent presentation.
b) Basis of Consolidation
The consolidated interim financial statements incorporate the
financial statements of the Company and entities (including special
purpose entities) controlled by the Company. Control is achieved
where the Company has the power to govern the financial and
operating policies of an entity so as to obtain benefits from its
activities.
All intra-group transactions, balances, income and expenses are
eliminated in full on consolidation.
Non-Controlling (Minority) interests in the net assets
(excluding goodwill) of these consolidated statements are
identified separately from theGroup's equity therein.
c) Use of estimates:
The preparation of financial statements necessarily involves the
making of assumptions and estimations by the Management which
impact on amounts of assets and liabilities as well as on
contingent assets/liabilities reported in these statements. Similar
estimations and assumptions by the Management are involved in the
compilation of revenues and expenses for the period.
Management formulates its estimates and assumptions based on
past experience and current developments as well as other factors
to reach what it considers to be reasonable judgment in the total
circumstances. Actual results may differ from the estimates
depending on the assumptions used and conditions prevailed
prevailing at the relevant point in time.
d) Segment Reporting:
Based upon risks and returns of the Group, the directors
consider that the primary reporting format is by business segment.
The secondary reporting format is by geographical analysis. Based
on the risks and returns of the Group the Directors consider that
there is only one geographical segment, this being India. All
external revenues of the Group are earned from customers in India
and it is India as a whole which dictates the level of geographical
risk and return facing the Group.
e) Revenue Recognition:
a. Income from sale of electricity is recognized on the basis of
number of units of power delivered to the grid per joint monthly
meter reading taken by the group and the utility and the allocation
thereagainst to the Group's customers as instructed to the grid.
Interest income is recognized on an accrual basis.
f) Taxes:
Current tax provision in these statements represents amounts of
tax payable based on applicable taxation Law in the Group's country
of operations.
Deferred income tax is determined based on timing differences as
at reporting date between the amounts of assets and liabilities
carried in these financial reports and their tax bases.
3. Foreign Currencies translation:
The unaudited consolidated interim financial information is
reported in a currency different from OPG Group's functional
currency. Assets, liabilities and cash flows have been translated
into UK Pounds ("GBP\") at the closing rate at the balance sheet
date. Income and Expenses are translated at the average rates of
exchange over the reporting period. The resulting translation
adjustments are recorded under the currency translation reserve in
equity.
The Great Britain Pound (GBP): Indian Rupee (INR) exchange
rates, used to translate the INR financial information into the
presentation currency of Great Britain Pound (GBP) were as
follows.
30 September 30 September
Particulars 2010 2009 31 March 2010
Closing rate 70.91 76.97 67.87
------------- ------------- --------------
Average rate 70.26 78.14 76.20
------------- ------------- --------------
Foreign Currency Transactions
Transactions in foreign currencies are translated at the foreign
exchange rate ruling at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies at the
balance sheet date are translated into functional currency at the
foreign exchange rate ruling at that date. Foreign exchange
differences arising on translation are recognized in the income
statement. 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. Non-Monetary
assets and liabilities denominated in foreign currencies that are
stated at fair value are translated to functional currency at
foreign exchange rates ruling at the dates the fair value was
determined.
4. Cash and Cash Equivalents
30 September 30 September 31 March
2010 2009 2010
Cash in hand and at bank 11,426,347 5,904,808 7,359,657
------------- ------------- -----------
Call deposits 5,585,853 19,721,664 6,808,796
------------- ------------- -----------
Cash and Cash equivalents in the
statement of cash flows 17,012,201 25,626,472 14,168,453
------------- ------------- -----------
Restricted Cash 1,407,922 1,156,388 1,481,894
------------- ------------- -----------
5. Share Capital
Authorised:
The Isle of Man Company's Act does not prescribe that a company
shall have an authorised share capital.
Issued and Fully paid up:
30 September 30 September 31 March
2010 2009 2010
286989795 ordinary shares of 0.0147p
each 42,187 42,187 42,187
------------- ------------- ---------
6. Acquisition of Property, Plant and Equipment for the period
ended 30th September, 2010:
Particulars Amount(In GBP)
Freehold & Leasehold Land 355,733
Plant & Machinery 30,425,847
Building 9,669,346
Electrical Installation 3,149,168
Furniture & Fixtures 3,967
Office Equipment 2,545
Vehicles 693
Computer 2,621
--------------------------- ---------------
Total 43,609,920
7. Earnings per share
The following is the computation of Basic EPS:
30 September 30 September 31 March
Particulars 2010 2009 2010
Weighted average number
of shares outstanding
used in computing
basic EPS 286,989,795 286,989,795 286,989,795
------------- ------------- ------------
Profit for the Period
(Excl. Minority Interest) GBP2,318,586 GBP1,113,946 GBP926,473
------------- ------------- ------------
Basic Earning per
Share (In Pence) 0.808 0.388 0.323
------------- ------------- ------------
The following is the computation of Diluted EPS:
30 September 30 September 31 March
Particulars 2010 2009 2010
#Weighted average
number of shares outstanding
used in computing
Diluted EPS 289712505 289037453 291373706
------------- ------------- -----------
Profit for the Period
(Excl. Minority Interest) GBP2,318,586 GBP1,113,946 GBP926,473
------------- ------------- -----------
Diluted Earning per
Share (In Pence) 0.800 0.385 0.318
------------- ------------- -----------
Weighted average number of shares outstanding used in computing
Diluted EPS:
30 September 30 September 31 March
Particulars 2010 2009 2010
Weighted average number
of ordinary shares 286989795 286989795 286989795
------------- ------------- ----------
Share options issued
for Nil Consideration 2722710 2047658 4383911
------------- ------------- ----------
Weighted average number
of ordinary shares
(Diluted) 289712505 289037453 291373706
------------- ------------- ----------
Diluted Earning per
Share (In Pence) 0.800 0.385 0.318
------------- ------------- ----------
8. Sale of Coal / Other Income :
Other Income includes an amount of GBP 968,655 from sale of coal
during the period. Cost of the same works out to be GBP 848,243
grouped under other expenses.
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BRBDDUXBBGGX
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