TIDMOPG
RNS Number : 4181T
OPG Power Ventures plc
13 December 2012
13 December 2012
OPG Power Ventures plc
("OPG" or the "Company")
Unaudited results for the six months ended 30(th) September
2012
OPG Power Ventures PLC, the developer and operator of power
generation plants in India, announces its unaudited results for the
six months ended 30(th) September 2012.
Financial Highlights
-- PBT GBP2.51m (30 Sep 11: GBP2.50m)*
-- Average tariff realized up 18% to Rs5.67/kWh (H1 2012: Rs4.80/kWh)*
-- Revenue GBP17.8m (30 Sep 11: GBP18.8m)*
-- 11% growth in underlying rupee revenues despite 25 day planned shutdown*
-- EBITDA GBP4.65m (30 Sep 11: GBP5.03m)*; EBITDA margin of 26% (30 Sep 11: 27%)*
-- 140 MW of capacity being sold to the state utility at Rs5.50/kWh until May 2013
-- Cash & cash equivalents of GBP22.5m; gearing of 31% following project expenditure
*excluding legacy assets no longer consolidated from November
2011
Operational Highlights
-- 77 MW Chennai I average PLF of 87 % (30 Sep 11: 94%) following planned shutdown
-- 77 MW Chennai II commissioned in September 2012, on time & within budget
-- Chennai II stabilization achieved within one month (four months for Chennai I)
-- All committed quantities of domestic coal received; contract for imported coal until Aug 2013
-- 80 MW Chennai III project on track for commissioning in Q2, 2013
-- 160 MW Chennai IV & 300 MW Gujarat progressing towards commissioning in 2014
Commenting on the results, Mr M C Gupta, Chairman stated: "The
Group's flexible business model continues to produce superior
returns and OPG's roll out of new plants is on schedule. Once again
management have been able to demonstrate the effectiveness of the
business model by successfully adapting to changing circumstances
in the industry such as rising input prices and changes in tariff
structures. The growing power demand in India combined with our
roll out and in particular measures now being instituted to improve
the financial health of the state utilities makes us confident that
OPG will continue to build superior shareholder value."
For further information, please visit www.opgpower.com or
contact:
+91 (0) 44 429 11
OPG Power Ventures PLC 211
Arvind Gupta
V Narayan Swami
Cenkos Securities (Nominated Adviser +44 (0) 20 7397
& Broker) 8900
Stephen Keys / Camilla Hume
+44 (0) 20 7920
Tavistock Communications 3150
Simon Hudson/Kelsey Traynor
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 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 report considerable developments for the Group
during the first six months of the financial year with an improved
underlying operating performance at the 77 MW Chennai I and the
commissioning of 77 MW Chennai II. During the same period
regulatory changes in the tariff regime have improved the outlook
for OPG and for the industry.
Underlying performance up
Revenue for the period was GBP17.8m, EBITDA was GBP4.65m and our
EBITDA margin was 26%. When the legacy assets that are no longer
consolidated are stripped out of the comparative period's reported
results, revenues appear 6% lower than last year. However, the 17%
depreciation in the average Indian rupee/pound sterling exchange
rate since the comparable period of the prior year masks an
underlying increase in rupee revenues of 11%. Notably, this
increase was accomplished with fewer generating days at Chennai I
in this half year as a result of our decision to take a single
planned 25 day shutdown in June 2012 for maintenance and to connect
facilities to Chennai II, instead of two separate planned shutdowns
totaling 40 days as we had originally planned to do.
Despite the shutdown, Chennai I achieved 87% PLF during the
period and judging by the 93% and 99% PLF we experienced in October
and November 2012 respectively, we remain confident of achieving an
average PLF of 90% for FY 2013 as a whole. Chennai II operated at
99% PLF in November 2012 and we continue to expect the plant to
achieve an average PLF of 85% for FY2013.
Improved tariff
The average tariff of Rs5.67/kWh in the period was 18% higher
than in the comparable period of the prior year. Our present
strategy is to sell most of our power from Chennai I and II to
TANGEDCO (Tamil Nadu state utility) at Rs5.50/kWh on a short term
contract until May 2013. The average tariff on sales to the state
electricity board in the immediately preceding six months was
Rs5.05/kWh. As sales to a state utility do not attract transmission
and other charges, the tariff agreed with TANGEDCO is relatively
attractive and provides an assured off-take which, when taken
together with our coal procurement arrangements, provides
additional visibility as to likely cash flows in the near term.
The tariffs we achieve continue to be significantly higher than
the approximately Rs3 per unit rates that most recent long term
power purchase agreements have been signed at. Our ability to
achieve higher short term tariffs has been especially relevant
during the period as our unit costs of generation rose 18% from
Rs2.75 to Rs3.26 per kWh reflecting principally higher coal costs
in Indian rupee terms.
Higher coal costs but expecting some savings is USD terms in FY
2014
Turning to the management of our key inputs, we have arranged
for the supply of imported coal from an existing and major supplier
in Indonesia until August 2013. As a result of this arrangement we
expect to achieve savings of over 10% in US dollar terms on the
plant gate cost of imported coal compared with the arrangements we
had in place prior to August 2012. As coal costs are recorded on an
average costing basis, we expect to experience the benefit of this
new arrangement principally in FY 2014 once recent coal deliveries
have been consumed early in 2013. We have been receiving domestic
coal as committed by Coal India Limited for Chennai I and
approximately 60% of our coal supplies for Chennai I continue to be
from overseas. Domestic coal supplies for Chennai II are expected
to commence early in 2013 at around 40% of the plant's
requirements.
Growing in self-sufficiency
Significantly for a young company such as ours, our operations
team led by Mr T Chandramoulee, COO, achieved several successes
during the period: Chennai II was commissioned and stabilized in
only one month by our in-house team compared to four months for
Chennai I by an external supplier, a 220 kV line for the evacuation
of power to the grid from Chennai II was constructed and 100% PLF
has been achieved by both units on a one-off basis. The team has
now gained significant EPC, plant commissioning and operations
experience since commissioning Chennai I. As another mark of our
maturing as a company we have instituted a formal Health, Safety
and Environment (HSE) committee to focus and enhance our efforts to
protect our employees and benefit the communities in which we
work.
Projects ongoing and remain on-track
Projects under development are progressing in line with schedule
and budget. The 80 MW Chennai III is at an advanced stage of
construction with most of the equipment on site and essential hydro
testing of the boiler expected to take place in the next few weeks
at the same time as boxing up the turbine. We expect to commission
the plant in Q2, 2013 which would bring our total capacity up to
270 MW. In the meantime, the 160 MW Chennai IV and the 2x150 MW
project in Gujarat are also progressing well towards commissioning
in 2014 with boiler construction having commenced at Gujarat using
around 500mt of the materials delivered to site so far. With all
key permissions and financing in place and construction advancing
steadily we believe our pipeline of 540 MW is substantially
de-risked.
Gearing at expected levels
As expected, as the Company's investment program is rolled out,
consolidated net debt has increased to GBP62m (31 March 2012:
GBP32m). Planned pre-payments on existing debt have resulted in the
Company being twelve months ahead of our current debt repayment
schedule on Chennai I.
Long-awaited improvements in the electricity sector have
started
At the macro level, the central Government has promulgated
policy and budgetary changes to stimulate economic growth and
investment - for example by allowing foreign investment into
previously restricted sectors. The electricity sector is
experiencing an uplift as policy and regulatory change has
outweighed the effect of continuing high interest rates and weak
exchange rates. A financial restructuring package was announced by
the central Government for the State Electricity Boards (SEB) and
has been adopted by many SEBs. The Government of Tamil Nadu has
signed the agreements stipulating the central Government's
formulations and conditions including the need for tariff increases
and reductions in transmission losses. Consequently, a further rise
in regulated tariffs in Tamil Nadu is generally expected to be
announced over the next year.
Summary and outlook
Our business model continues to prove its effectiveness at a
time when policy changes are being introduced to improve the
dynamics of our industry and in the light of external factors such
as interest costs and exchange rate effects. We are confident that
if the overall direction of policy is maintained, and as our
operating asset base continues to strengthen, we will be in a
position to consider further growth options including the adoption
of a dividend policy as our current development portfolio gets
delivered.
We wish to recognize the continuing support of our shareholders
and employees that has enabled us to weather our industry's
challenges and to record the successes that we have in this review.
I look forward to reporting the Company's continuing progress at
the end of the financial year and in the meantime, our focus on
growth and shareholder returns continues unabated.
Arvind Gupta
Chief Executive
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 September 2012
(All amounts in GBP, unless otherwise Consolidated
stated)
Particulars 30/09/2012 30/09/2011 31/03/2012
------------------------------------------------- ------------- ------------- -------------
Revenue 17,754,509 23,855,762 45,253,431
Cost of revenue (11,414,885) (15,811,704) (31,347,196)
Gross profit 6,339,624 8,044,058 13,906,235
Other income 1,102,613 373,566 1,538,242
Distribution Cost (421,314) (1,199,051) (895,006)
General and administrative expenses (2,927,698) (1,764,473) (3,373,989)
Operating profit 4,093,225 5,454,101 11,175,481
Financial costs (1,434,079) (3,213,932) (4,823,587)
Financial income 519,866 1,736,596 2,808,853
Income from continuing operations (before
tax, non
operational and/ or exceptional items) 3,179,012 3,976,764 9,160,747
Loss on deconsolidation of subsidiaries - (4,815,135)
Employee Share Option expenses (487,111) (727,124) (1,454,247)
Pre-Operative expenses (relating to projects
under construction) (185,886) (217,032) (630,150)
------------- ------------- -------------
Profit/(loss) before tax 2,506,015 3,032,609 2,261,215
Tax expense (916,402) (881,643) (2,044,115)
Profit/(loss) for the year 1,589,613 2,150,965 217,100
============= ============= =============
Profit/(loss) for the year attributable
to:
Owners of the parent 1,562,049 2,148,050 251,427
Non controlling interests 27,564 2,915 (34,327)
Earnings per share
Basic earnings per share (in Pence) 0.444 0.611 0.072
Diluted earnings per share (in Pence) 0.444 0.602 0.072
Other Comprehensive Income
Available for Sale Financial Assets
- Reclassification on loss of control
of subsidiaries - - (253,343)
- Reclassification to profit and loss 109,483 169,288 255,542
- Current year losses on re measurement (113,131) (117,644) (109,483)
Currency translation differences on translation
of foreign operations (2,523,799) (4,803,747)
-------------
(11,261,421)
------------- ------------- -------------
Other comprehensive income (2,527,447) (4,752,103) (11,368,705)
Total comprehensive income for the year
attributable to: (937,834) (2,601,137) (11,151,605)
============= ============= =============
Owners of the parent (947,110) (1,980,544) (11,035,084)
Non controlling interests 9,276 (620,592) (116,521)
(937,834) (2,601,137) (11,151,605)
------------------------------------------------- ------------- -------------
The financial statements were authorised for issue by the board
of directors on 12(th) December 2012 and were signed its
behalf:
Arvind Gupta V. Narayan Swami
Chief Executive Officer Chief Financial Officer
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 September 2012
(All amounts in GBP, unless Consolidated
otherwise stated)
----------------------------------------
30/09/2012 30/09/2011 31/03/2012
--------------------------------- ------------ ------------ ------------
ASSETS
Non Current
Property, plant and equipment 116,079,233 79,740,424 93,031,022
Investments and other financial
assets 2,129,931 11,895,047 2,285,430
Deferred tax asset - 156,883 -
Restricted cash 1,264,182 1,063,800 868,996
Total Non Current assets 119,473,346 92,856,155 96,185,448
------------ ------------
Current
Inventories 6,023,027 7,841,872 5,546,740
Trade and other receivables 14,003,943 12,062,870 17,405,365
Cash and Cash Equivalents 22,524,204 62,529,002 37,876,393
Restricted Cash 1,528,549 2,775,913 3,712,150
Current tax assets 116,390 323,100 48,071
Investments and other financial
assets 59,799,274 53,768,764 52,836,729
Total Current assets 103,995,387 139,301,521 117,425,448
------------ ------------
Total Assets 223,468,733 232,157,676 213,610,896
--------------------------------- ------------ ------------ ------------
EQUITY AND LIABILITIES
Equity:
Equity attributable to
owners of the parent:
Share Capital 51,671 51,671 51,671
Share Premium 124,316,524 124,316,524 124,316,524
Other components of Equity (5,278,459) 4,402,373 (3,256,411)
Retained earnings/ (Accumulated
deficit) 12,139,640 11,198,076 10,577,591
------------ ------------ ------------
Total 131,229,376 139,968,644 131,689,375
Non-Controlling Interest 71,647 9,187,217 62,371
------------ ------------ ------------
Total Equity 131,301,023 149,155,862 131,751,746
------------ ------------ ------------
Liabilities
Non current
Borrowings 71,569,747 54,862,631 56,055,498
Trade and other payables 310,393 1,153,224 1,396,701
Deferred tax liability 1,664,969 1,472,509 1,300,658
Total Non Current liabilities 73,545,109 57,488,364 58,752,857
------------ ------------
Current
Borrowings 12,634,613 7,926,680 14,806,900
Trade and other payables 5,882,196 12,472,948 7,809,652
Other liabilities 105,792 5,051,158 239,259
Current Tax Liabilities - 62,664 250,482
------------ ------------ ------------
Total Current liabilities 18,622,601 25,513,450 23,106,293
------------ ------------ ------------
Total Liabilities 92,167,710 83,001,814 81,859,150
------------ ------------ ------------
Total Equity and Liabilities 223,468,733 232,157,676 213,610,896
--------------------------------- ------------ ------------ ------------
The financial statements were authorised for issue by the board
of directors on 12(th) December 2012 and were signed on its
behalf:
Arvind Gupta V. Narayan Swami
Chief Executive Officer Chief Financial Officer
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 30 September 2012
GROUP Issued Share Share Other Foreign Retained Total of Non-Controlling Total Equity
(All amount in GBP, Capital capital Premium Reserves Currency earnings Parent Interest
unless (No. of Translation equity
otherwise stated) Shares) reserve
------------ -------- ------------ ------------ ------------- ----------- ------------- ----------------
Balance at 1 April,
2012 351,504,795 51,671 124,316,524 4,979,570 (8,235,982) 10,577,591 131,689,375 62,370 131,751,745
Employee Share
based
payment options 487,111 487,111 487,111
Transactions with
owners 351,504,795 51,671 124,316,524 5,466,681 (8,235,982) 10,577,591 132,176,486 62,370 132,238,856
------------ -------- ------------ ------------ ------------- ----------- ------------- ----------------
Profit for the year 1,562,049 1,562,049 27,564 1,589,613
Currency
translation
differences (2,505,552) (2,505,552) (18,247) (2,523,799)
Gains/(losses) on
sale
/ re-measurement
of
available-for-sale
financial assets (3,607) (3,607) (41) (3,648)
Total comprehensive
income
for the year (2,509,159) 1,562,049 (947,110) 9,276 (937,834)
------------ -------- ------------ ------------ ------------- ----------- ------------- ----------------
Balance at 30
September,
2012 351,504,795 51,671 124,316,524 2,957,523 (8,235,982) 12,139,640 131,229,376 71,647 131,301,022
-------------------- ------------ -------- ------------ ------------ ------------- ----------- ------------- ---------------- -------------
Balance at 1 April,
2011 351,504,795 51,671 124,316,524 4,614,203 3,189,641 9,050,027 141,222,066 9,807,809 151,029,875
Transfers during
the
year 48,146 48,146 (48,146)
Employee Share
based
payment options 1,454,247 1,454,247 1,454,247
Effect of Loss of
Control
of Subsidiaries (9,580,771) (9,580,771)
Transactions with
owners 351,504,795 51,671 124,316,524 6,116,596 3,189,641 9,050,027 142,724,459 178,892 142,903,351
------------ -------- ------------ ------------ ------------- ----------- ------------- ---------------- -------------
Profit for the year 251,427 251,427 (34,327) 217,100
Effect of Loss of
Control
of Subsidiaries (1,281,379) (248,101) 1,276,137 (253,343) (253,343)
Currency
translation
differences (11,177,522) (11,177,522) (83,899) (11,261,421)
Gains/(losses) on
sale
/ re-measurement
of
available-for-sale
financial assets 144,354 144,354 1,705 146,059
Total comprehensive
income
for the year (1,137,025) (11,425,623) 1,527,564 (11,035,084) (116,521) (11,151,605)
------------ -------- ------------ ------------ ------------- ----------- ------------- ----------------
Balance at 31
March,
2012 351,504,795 51,671 124,316,524 4,979,571 (8,235,982) 10,577,591 131,689,375 62,371 131,751,746
-------------------- ------------ -------- ------------ ------------ ------------- ----------- ------------- ---------------- -------------
Balance at 1 April,
2011 51,671 124,316,524 4,614,203 3,189,641 9,050,027 141,222,066 9,807,809 151,029,875
Employee Share
based
payment options 727,124 727,124 727,124
Transactions with
owners 51,671 124,316,524 5,341,327 3,189,641 9,050,027 141,949,190 9,807,809 151,756,999
------------ -------- ------------ ------------ ------------- ----------- ------------- ----------------
Profit for the year 2,148,049 2,148,049 2,915 2,150,964
Currency
translation
differences (4,118,521) (4,118,521) (685,226) (4,803,746)
Gains/(losses) on
sale
/ re-measurement
of
available-for-sale
financial assets (10,074) (10,074) 61,718 51,644
Total comprehensive
income
for the year (10,074) (4,118,521) 2,148,049 (1,980,546) (620,592) (2,601,138)
------------ -------- ------------ ------------ ------------- ----------- ------------- ----------------
Balance at 30
September,
2011 - 51,671 124,316,524 5,331,253 (928,879) 11,198,076 139,968,645 9,187,217 149,155,862
-------------------- ------------ -------- ------------ ------------ ------------- ----------- ------------- ---------------- -------------
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 September 2012
Particulars For the period For the period For the year
(All amount in GBP, unless otherwise ended 30th ended 30th ended 31st
stated) September September March 2012
2012 2011
Cash flows from operating activities
Profit / (Loss) for the year before
Tax 2,506,015 3,032,609 2,261,215
Financial Expenses 1,434,079 3,213,932 4,823,587
Financial Income (519,866) (1,349,816) (2,518,069)
Share based compensation costs 487,111 727,124 1,454,247
Depreciation 522,360 776,487 1,397,121
Loss on deconsolidation of subsidiaries - - 4,815,135
--------------- --------------- -------------
4,429,699 6,400,336 12,233,237
Movements in Working Capital
(Increase) / Decrease in trade
and other receivables 2,955,692 (4,233,803) (14,047,319)
(Increase) / Decrease in inventories (595,091) (2,734,874) (1,579,425)
(Increase) / Decrease in other
current assets (210,209) 421,343 1,419,697
Increase / (Decrease) in trade
and other payables (2,627,248) 1,149,816 5,565,387
Increase / (Decrease) in Other
liabilities (2,084,212) 106,079 1,056,506
--------------- --------------- -------------
Cash (used in) / generated from
operations 1,868,631 1,108,897 4648082
Income Taxes paid, net of refunds (839,034) (218,473) (532,088)
---------------
Net Cash Generated by / (used in)
Operating activities 1,029,597 890,424 4,115,994
=============== =============== =============
Cash flow from investing activities
Acquisition of property, plant
and equipment (21,859,769) (25,213,585) (71,351,424)
Sale of property, plant and equipment
(Increase) / Decrease in Advances - 2,400,464 -
Finance Income 402,189 1,254,927 2,541,533
Dividend income 117,677 119,057 453,787
Movement in restricted cash 1,655,407 (1,782,752) (3,013,933)
Net cash outflow on acquisition -
of subsidiaries
Sale / (Purchase) of Investments,
net (9,245,555) 798,709 2,603,909
(Increase) / Decrease in land lease
Deposits (680,302) -
Net cash (used) / generated by
investing activities (28,930,051) (23,103,482) (68,766,128)
=============== =============== =============
Cash flows from financing activities
Proceeds from issue of Ordinary -
Shares -
Proceeds from borrowings 14,743,697 15,449,115 37,122,045
Interest Paid (1,434,079) (3,148,586) (4,823,587)
Payment for share issue costs - -
--------------- --------------- -------------
Net cash provided by financing
activities 13,309,618 12,300,529 32,298,458
=============== =============== =============
Net increase / (decrease) in cash
and cash equivalents (14,590,836) (9,912,530) (32,351,676)
Cash and cash equivalents at the
beginning of the year / period 37,876,393 71,104,280 71,104,280
Effect of Exchange rate changes
on the balance of cash held in
foreign currencies (761,355) 1,337,253 (643,204)
Impact on deconsolidation of subsidiaries (233,008)
--------------- --------------- -------------
Cash and cash equivalents at the
end of the year / period 22,524,204 62,529,003 37,876,393
=============== =============== =============
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the period ended 30 September 2012
(All amount in LIR, unless otherwise stated)
1. Corporate information
1.1 Nature of operations
OPG Power Ventures plc ('the Company' or 'OPGPV') and its
subsidiaries (collectively referred to as 'the Group') are
primarily engaged in the development, owning, operation and
maintenance of private sector power projects In India. The
electricity generated from the Group's plants is sold principally
to public sector undertakings and heavy industrial companies in
India or in the short term market. The business objective of the
Group is to focus on the power generation business within India and
thereby provide reliable, cost effective power to the industrial
consumers and other users under the 'open access' provisions
mandated by the Government of India.
1.2 General information
OPG Power Ventures plc, a limited liability corporation, is the
Group's ultimate parent Company and is incorporated and domiciled
in the Isle of Man. The address of the Company's registered Office,
which is also the principal place of business, is IOMA House, Hope
Street, Douglas, Isle of Man 1M1 1JA. The Company's equity shares
are listed on the Alternative Investment Market (AIM) of the London
Stock Exchange.
2. Summary of significant accounting policies
2.1 Basis of preparation
The consolidated financial statements have been prepared on a
historical cost basis, except for financial assets and liabilities
at fair value through profit or loss and available-for-sale
financial assets measured at fair value.
The consolidated financial statements are presented in
accordance with IAS 1 Presentation of Financial Statements (Revised
2007) and have been presented in Great Britain Pound ('LIR'), which
is the functional and presentation currency of the Company.
The consolidated, unaudited, interim financial statements of the
Group for the six months ended 30th September 20102 have been
approved by the Board of Directors.
2.2 Basis of consolidation
The consolidated financial statements incorporate the financial
information of OPG Power Ventures Plc and its subsidiaries for the
six months ended 30 September 2012.
A subsidiary is defined as an entity 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. Subsidiaries are fully consolidated
from the date of acquisition, being the date on which control is
acquired by the Group, and continue to be consolidated until the
date that such control ceases. All subsidiaries have a reporting
date of 30th September and use consistent accounting policies
adopted by the group.
All intra-group balances, income and expenses and any resulting
unrealized gains arising from intra-group transactions are
eliminated in full on consolidation.
Non-Controlling interest represents the portion of profit or
loss and net assets that is not held by the Group and is presented
separately in the consolidated statement of comprehensive income
and within equity in the consolidated statement of financial
position, separately from parent shareholders' equity. Acquisitions
of additional stake or dilution of stake from/ to minority
interests/ other venturer in the Group where there is no loss of
control are accounted for using the equity method, whereby, the
difference between the consideration paid or received and the book
value of the share of the net assets is recognised in 'other
reserve' within statement of changes in equity.
The practice of presenting stand alone accounts of the Company
has been dispensed with, effective from 31(st) March 2012, given
that the Company is principally a holding Company with no
independent business income of its own and that the principal
earnings of the Group are derived from its subsidiaries in
India.
2.3 List of subsidiaries
Details of the Group's subsidiary which are consolidated into
the Group's consolidated financial statement, are as follows:
Subsidiaries Immediate Country of % Voting % Economic
parent incorporation Interest Interest
2012 2012
----------- ---------------- ---------- -----------
Caromia Holdings limited ('CHL') OPGPV Cyprus 100 100
----------- ---------------- ---------- -----------
Gita Energy Private Limited ('GEPL')
(refer note below) CHL Cyprus 100 100
----------- ---------------- ---------- -----------
Gita Holdings Private Limited
('GHPL')(1) CHL Cyprus 100 100
----------- ---------------- ---------- -----------
OPG Power Generation Private GEPL and
Limited ('OPGPG') GHPL India 71.76 99
----------- ---------------- ---------- -----------
OPG Power Gujarat Private Limited GEPL and
('OPGG')(2) GHPL India 100 100
----------- ---------------- ---------- -----------
OPG Renewable Energy Private GEPL and
Limited ('OPGRE')(3) GHPL India 0 33
----------- ---------------- ---------- -----------
OPG Energy Private Limited ('OPGE')(3) OPGPG India 0 44.22
----------- ---------------- ---------- -----------
Gita Power and Infrastructure
Private Limited, ('GPIPL') GHPL India 100 98.22
----------- ---------------- ---------- -----------
(1) As of 10 February 2011 pursuant to agreement for assignment
of debt between CHL and OPGPV the entire shares held in GEPL and
GHPL have been transferred by 'OPGPV' to 'CHL'
(2) Partly paid equity shares in OPGG have been forfeited and
thereby the economic interest and voting rights of the GEPL and
GHPL together stand increased to 100%.
(3) Effective 1(st) December 2011 the Group's minority interests
in OPGE and OPGRE are accounted as Investments Available for Sales
and no longer consolidated in these accounts (Refer: Note 23 of the
Annual Report & Accounts as at 31(st) March 2012)
2.4 Foreign currency translation
The functional currency of the Company is the Great Britain
Pound (GBP). The Cypriot entities are an extension of the parent
and pass through investment entities. Accordingly the functional
currency of the subsidiaries in Cyprus is the Great Britain Pound
Sterling. The functional currency of the Company's subsidiaries
operating in India, determined based on evaluation of the
individual and collective economic factors is Indian Rupee (' ').
The presentation currency of the Group is the Great Britain Pound
(GBP) as submitted to the AIM market where the shares of the
Company are listed.
At the reporting date the assets and liabilities of the Group
are translated into the presentation currency which is Great
Britain Pound (GBP) at the rate of exchange ruling at the Statement
of financial position date and the statement of comprehensive
income is translated at the average exchange rate for the year.
Exchange differences are charged/ credited to other comprehensive
income and recognized in the currency translation reserve in
equity.
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
Statement of financial position date are translated into functional
currency at the foreign exchange rate ruling at that date.
Aggregate gains and losses resulting from foreign currencies are
included in finance income or costs within the profit or loss.
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.
Particulars 30 September 30 September 31 March 2012
2012 2011
Closing rate 84.86 77.53 82.90
------------- ------------- --------------
Average rate 86.24 73.50 76.69
------------- ------------- --------------
2.5 Revenue recognition
Revenue is recognised to the extent that it is probable that the
economic benefits associated with the transaction will flow to the
Group, and revenue can be reliably measured. Revenue is measured at
the fair value of the consideration received or receivable in
accordance with the relevant agreements, net of discounts, rebates
and other applicable taxes and duties.
Sale of electricity
Revenue comprises revenue from sale of electricity. Revenue from
the sale of electricity is recognised when earned on the basis of
contractual arrangement with the customers and reflects the value
of units supplied including an estimated value of units supplied to
the customers between the date of their last meter reading and the
reporting date.
Interest and dividend
Revenue from interest is recognised as interest accrues (using
the effective interest rate method). Revenue from dividends is
recognised when the right to receive the payment is
established.
2.6 Taxes
Current tax provision in these statements represents amounts of
tax payable based on applicable taxation Law in the Group's country
of operations. Tax expense recognised in profit or loss comprises
the sum of deferred tax and current tax not recognised in other
comprehensive income or directly in equity.
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
2.7 Financial assets
For the purpose of subsequent measurement, financial assets are
classified into the following categories upon initial
recognition:
-- loans and receivables; and
-- available-for-sale financial assets.
The category determines subsequent measurement and whether any
resulting income and expense is recognised in profit or loss or in
other comprehensive income.
Loans and receivables
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active
market. After initial recognition these are measured at amortised
cost using the effective interest method, less provision for
impairment. Discounting is omitted where the effect of discounting
is immaterial. The Group's cash and cash equivalents, trade and
most other receivables fall into this category of financial
instruments.
Individually significant receivables are considered for
impairment when they are past due or when other objective evidence
is received that a specific counterparty will default. Receivables
that are not considered to be individually impaired are reviewed
for impairment in groups, which are determined by reference to the
industry and region of a counterparty and other shared credit risk
characteristics. The impairment loss estimate is then based on
recent historical counterparty default rates for each identified
group.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial
assets that are either designated to this category or do not
qualify for inclusion in any of the other categories of financial
assets. The Group's available-for-sale financial assets include
mutual funds, listed securities and equity instruments.
Available-for-sale financial assets are measured at fair value.
Gains and losses are recognised in other comprehensive income and
reported within the available-for-sale reserve within equity,
except for impairment losses and foreign exchange differences on
monetary assets, which are recognised in profit or loss. When the
asset is disposed of or is determined to be impaired the cumulative
gain or loss recognised in other comprehensive income is
reclassified from the equity reserve to profit or loss and
presented as a reclassification adjustment within other
comprehensive income.
Reversals of impairment losses are recognised in other
comprehensive income, except for financial assets that are debt
securities which are recognised in profit or loss only if the
reversal can be objectively related to an event occurring after the
impairment loss was recognised.
2.8 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.
2.9 Segment Reporting:
The Group has adopted the "management approach" in identifying
the operating segments as outlined in IFRS 8. Operating segments
are reported in a manner consistent with the internal reporting
provided to the chief operating decision maker. The chief operating
decision maker, who is responsible for allocating resources and
assessing performance of the operating segment has been identified
as the steering committee that makes strategic decisions.
Management has analysed the information that the chief operating
decision maker reviews and concluded on the segment disclosure. In
identifying its operating segments, management generally follows
the Group's service lines, which represent the generation of the
power and other related services provided by the Group. The
activities undertaken by the Power generation segment includes sale
of power and other related services. The accounting policies used
by the Group for segment reporting are the same as those used for
consolidated financial statements.
For management purposes, the Group is organised into only a
single business unit of power generation and distribution of the
same to customers. There are no geographical segments as all
revenues arise from India.
3. Other Income
Consolidated
---------------------------------
Sep 2012 Sep 2011 Mar 2012
--------------------------------- ---------- --------- ----------
Sale of Coal/fly ash 84,419 352,516
Interest on Receivables 495,585 - 563,902
Compensation for loss of profit - - 370,277
Miscellaneous income/expense 522,609 21,050 604,603
Total 1,102,613 373,566 1,538,242
--------------------------------- ---------- --------- ----------
4. Trade and other Receivables
Sep 2012 Sep 2011 Mar 2012
GBP Mn GBP Mn GBP Mn
---------------------------------------- --------- --------- ---------
Receivables from sale of power (OPGPG) 11.53 6.40 14.71
Other receivables 2.47 5.65 2.70
Total 14.00 12.05 17.41
Ageing of Receivables from Sale of power
Sep 2012 Sep 2011 Mar 2012
Sep 2012 (accrued but not due) 3.26
--------- --------- ---------
Aug 2012 3.16
--------- --------- ---------
Jul 2012 2.51
--------- --------- ---------
Jun 2012 0.42
--------- --------- ---------
May 2012 2.18
--------- --------- ---------
4 months outstandings - Jun 2011
to Sep 2011 6.40
--------- --------- ---------
7 months outstandings - Sep 2011
to Mar 2012 14.71
--------- --------- ---------
Receivables from sale of power 11.53 6.40 14.71
--------- --------- ---------
Since collected - May 2012 in Oct
2012 2.18
--------- --------- ---------
Net Receivables from Sale of power 9.35
--------- --------- ---------
N.B: Effective 1(st) August 2012 supplies to TANGEDCO are at
annualised rate of 70 MW per month as against 50 MW per month
(annualised) until 31(st) July 2012.
5. Cash and cash equivalents
Cash and short term deposits comprise of the following:
Consolidated
-------------------------------------
Sep 2012 Sep 2011 Mar 2012
--------------------------- ----------- ----------- -----------
Cash at banks and on hand 17,470,921 61,751,764 34,023,639
Short-term deposits 5,053,283 777,238 3,852,754
----------- ----------- -----------
Total 22,524,204 62,529,002 37,876,393
--------------------------- ----------- ----------- -----------
Short-term deposits are made for varying periods, depending on
the immediate cash requirements of the Group. They are recoverable
on demand.
6. Property, Plant and equipment, net - consolidation for the period ended 30th September 2012
A. Gross Block
Particulars Land and Power Stations Other Vehicles Assets under Total
Buildings plant construction*
and equipment
------------ --------------- --------------- --------- -------------------
As at 1 April 2011 9,205,255 49,791,628 138,121 205,048 18,424,186 77,764,239
- Additions 1,064,278 1,431,849 214,938 122,146 47,521,538 50,354,749
- Deconsolidation (986,475) (9,013,743) (58,777) - (10,672,839) (20,731,834)
- Disposals - (26,541) - - - (26,541)
- Exchange
Adjustments (1,202,662) (6,129,605) (9,802) (34,624) (5,318,058) (12,694,751)
As at 31 March
2012 8,080,397 36,053,588 284,480 292,570 49,954,827 94,665,863
------------ --------------- --------------- --------- -------------------
As at 1 April 2012 8,080,397 36,053,588 284,480 292,570 49,954,827 94,665,863
- Additions 1,203,804 11,518 63,791 155,959 24,383,562 25,818,633
- Disposals - - - - - -
- Exchange
Adjustments (182,617) (833,770) (6,032) (6,032) (1,248,064) (2,276,515)
As at 30 September
2012 9,101,584 35,231,337 342,239 442,497 73,090,325 118,207,981
------------ --------------- --------------- --------- -------------------
B. Accumulated Depreciation
Particulars Land and Power Other Vehicles Assets under Total
Buildings Stations plant construction
and equipment
------------ --------------- --------------- --------- -------------------
As at 1 April 2011 227,656 3,403,761 66,218 71,306 - 3,768,941
- Charge for the
year 28,843 1,291,215 30,870 46,194 - 1,397,122
- Deconsolidation (223,623) (2,773,033) (24,009) - - (3,020,665)
- Disposals - - - - - -
- Exchange
Adjustments (26,269) (467,030) (6,285) (10,973) - (510,557)
As at 31 March
2012 6,607 1,454,913 66,794 106,527 - 1,634,841
------------ --------------- --------------- --------- -------------------
As at 1 April 2012 6,607 1,454,913 66,794 106,527 - 1,634,841
- Additions 7,343 433,165 56,039 26,679 - 523,226
- Disposals - - - - - -
- Exchange
Adjustments (32) (26,718) (567) (2,002) - (29,319)
As at 30 September
2012 13,918 1,861,360 122,266 131,204 - 2,128,748
------------ --------------- --------------- --------- -------------------
C. Net Block
Particulars Land and Power Stations Other Vehicles Assets Total
Buildings plant under construction
and equipment
------------ --------------- --------------- --------- -------------------
As at 2012 8,073,789 34,598,675 217,686 186,043 49,954,827 93,031,022
As at 30 Sep 2012 9,087,666 33,369,976 219,972 311,293 73,090,325 116,079,233
------------------- ------------ --------------- --------------- --------- ------------------- ---------------
Approved by the Board of Directors on 12(th) December 2012 and
signed on its behalf:
Arvind Gupta V. Narayan Swami
Chief Executive Officer Chief Financial Officer
This information is provided by RNS
The company news service from the London Stock Exchange
END
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