TIDMOPG
RNS Number : 9169U
OPG Power Ventures plc
28 November 2019
28 November 2019
OPG Power Ventures plc
("OPG", the "Group" or the "Company")
Unaudited results for the six months ended 30 September 2019
OPG (AIM: OPG), the developer and operator of power generation
plants in India, announces its unaudited results for the six months
ended 30 September 2019 ("H1 FY20").
Highlights
-- Profit from continuing operations increased by 8.9 per cent to GBP7.4m (H1 FY19: GBP6.8m);
-- EPS increased by 23.1 per cent to 1.97p (H1 FY19: 1.60p);
-- GBP9.6m term loan principal repayment in H1 FY20,
representing 2.48 pence per share added in value to shareholders'
equity;
-- Gross debt reduced by 17.6 per cent to GBP70.7m (H1 FY19: GBP85.9m, GBP80.4m at 31 March 2019)
-- H1 FY20 total generation of 1.4 billion units (H1 FY19: 1.5 billion units)
-- Average tariff in H1 FY20 was Rs5.66 (H1 FY19: Rs5.20)
Summary financial information (including historic financial
data)
HY 30 Sep HY 30 Sep FY 31 Mar
GBP million 19 18 19
Revenue 78.4 77.9 140.6
---------- ---------- ----------
Adjusted EBITDA* 18.0 17.6 35.3
---------- ---------- ----------
Profit Before Tax 9.7 7.6 16.9
---------- ---------- ----------
Profit After Tax 8.2 6.5 14.1
---------- ---------- ----------
Earnings Per Share ("EPS")
(pence) 1.97 1.60 3.81
---------- ---------- ----------
* Adjusted EBITDA is calculated as Operating profit before
depreciation, amortisation and share based payments
Arvind Gupta, Chairman, commented: "Two years ago the Board
adopted a strategy to focus on our profitable, long-life assets in
Chennai and to deleverage in order to deliver growth in
shareholders' equity by the transfer of value from debtholders to
investors. This process continued successfully during the first
half of this financial year.
"By maintaining our sector leading operational performance, we
intend to sustain the rate of term debt repayment with the
objective that in 2023 we will be debt free. As interest costs
decline in line with borrowings we will generate increasing levels
of free cash flow which, in due course, will increase shareholder
value substantially."
For further information, please visit www.opgpower.com or
contact:
+91 (0) 44 429
OPG Power Ventures PLC 11211
Arvind Gupta / Dmitri Tsvetkov
Cenkos Securities (Nominated Adviser +44 (0) 20 7397
& Broker) 8900
Russell Cook/ Stephen Keys
+44 (0) 20 7920
Tavistock (Financial PR) 3150
Simon Hudson / Barney Hayward / Nick
Elwes
There will be a call for analysts and investors at 1000h GMT
today. Dial in details are:
United Kingdom Toll-Free: 08003589473, PIN: 68044945#
United Kingdom Toll: +44 3333000804, PIN: 68044945#
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ('MAR')
Disclaimer
This announcement does not constitute or form part of any offer
or invitation on to sell or issue, or any solicitation on of any
offer to purchase or subscribe for any securities. The making of
this announcement does not constitute a recommendation on 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.
Executive Chairman's Statement
Introduction
In 2018, the Board took the decision to focus on our profitable,
long-life assets in Chennai, and given the relatively high cost of
borrowing in India, to prioritise maintaining its track record of
timely debt repayments as a credible method at the current time to
grow shareholders' equity. This strategy, we believe, would deliver
value to shareholders and by the end of 2023 create a debt free
business with free cash flows to provide significant returns to our
shareholders.
The increase in equity value, since the adoption of this
strategy is:
Expected
FY18 - FY19 H1 FY20* H2 FY20* Expected FY21*
---------------------------- ------------ --------- ---------- ---------------
Term loan principal
repayments (GBP million*) 42.9 9.6 9.6 18.1
---------------------------- ------------ --------- ---------- ---------------
Addition to shareholders
value as a result of
term loan principal
repayments per share
(pence) 11.1 2.5 2.5 4.7
---------------------------- ------------ --------- ---------- ---------------
* Based upon INR/GBP closing exchange rate at 30 September 2019
of 86.41
The Board remains convinced that our strategy of maintaining
operational excellence and paying down borrowings is the right one
to pursue for all our stakeholders.
Operations Summary
Chennai - Total generation maintained at 1.44 billion kWh and
PLF of 79%
HY HY FY
30 Sep 2019 30 Sep 2018 31 Mar 2019
Generation (million kWh)
------------- ------------- -------------
414 MW Chennai 1,296 1,439 2,471
Additional "deemed" offtake at
Chennai 144 106 234
-------------------------------- ------------- ------------- -------------
Total Generation (MUe)(1) 1,440 1,545 2,705
-------------------------------- ------------- ------------- -------------
Reported Average PLF (%)
------------- ------------- -------------
414 MW Chennai 79% 85% 75%
------------- ------------- -------------
Average Tariff Realized (Rs)
------------- ------------- -------------
414 MW Chennai 5.66 5.20 5.41
------------- ------------- -------------
Note: (1) MU / Mue - millions units or kWh of equivalent
power
Total Generation at the Chennai plant, excluding deemed
generation, in H1 FY19 was 1.3 billion units, 10 per cent less than
in H1 FY19. This decrease in generation was primarily due to
decreased demand primarily by automobile and steel industrial
customers as Indian economic growth moderated slightly. We
recognised a prudent impairment provision of GBP5.2m covering an
expected credit loss of certain trade receivables which are
primarily deemed not recoverable and also due to dispute regarding
particular contractual terms. Average tariffs realised in H1 FY20
were Rs 5.66 per kWh and for FY20 are expected to be about the same
(H1 FY19: Rs5.20; FY19: Rs5.41 per kWh).
Focus on Maximising Asset Performance and Deleveraging
As previously announced, it is expected that the Company will be
compliant with the revised emission norms introduced by the Indian
environmental authorities and which have to be implemented by all
thermal power plants across the country in a phased manner.
The average landed cost of coal was GBP50.1 (Rs 4,407) per tonne
in H1 FY20, (GBP49.3 or Rs4,517 per tonne in FY19).
As at 30 September 2019, total borrowings were GBP70.7 million,
including term loans of GBP63.2million and working capital loans of
GBP7.5 million. The remainder of the Chennai plant term loans are
scheduled to be fully repaid by Unit II and III in calendar year
2022 and Unit IV in Q3 23. (Unit I term loan were fully repaid in
December 2018)
62 MW Karnataka Solar projects
Our Karnataka solar projects are situated north of Bengaluru.
All plants are operational and have met all critical operating
metrics. Currently the projects are receiving a tariff of Rs 4.36
per kWh. We expect the Capacity Utilisation Factor to be 19-20 per
cent during FY20. As previously announced, the Board has decided to
focus on the core thermal power plants business in Chennai and the
Karnataka solar projects remain in a disposal process.
The Indian Economy and Power Sector
The IMF's World Economic Update in October 2019 estimated an
annual growth rate of 6.1 per cent in GDP for India in 2019,
picking up to 7 per cent in 2020. Indian growth has slowed on the
back of a decrease in private consumption and a decline in private
investment due to the global manufacturing downturn and rising
trade barriers.
To strengthen private consumption and spur private investment,
the Indian government announced a corporate tax rate cut to 25.17
per cent (down from 34.94 per cent), a liquidity infusion into
sectors including banking and real estate and an interest rate cut
by the Reserve Bank of India of 110 basis points during our FY
20.
Indian power consumption per capita was only 1,149 kWh in 2018.
It is expected that this will catch up with developed economies
with similar social and economic conditions over time. India has
moved up 14 positions to rank 63 globally, its highest ever, in the
World Bank's annual Ease of Doing Business table in the latest
World Bank, Doing Business 2020 Report. The resultant impact is
expected to be increased economic activity and industrialisation,
contributing to increasing power demand.
Outlook
We will maintain our strategy of maximising operational
performance and deleveraging. Operationally, the Company is
benefitting from the current level of coal prices and we expect to
maintain strong plant load factors of between 75 and 80 per cent in
FY20. This will allow us to demonstrate good profitability in FY20.
We will continue to repay borrowings and increase the value to our
shareholders as debt reduces and profitability increases.
Consolidated statement of financial
position
As at 30 Sep 2019
(All amount in GBP, unless
otherwise stated)
As at As at As at
Notes 30 Sep 30 Sep 31 Mar
2019 2018 2019
------------------------------------ ----- ----------- ----------- -----------
Assets
Non-current assets
Intangible assets 13(a) 17,201 42,981 23,603
Property, plant and equipment 13(b) 210,117,169 197,246,154 204,102,891
Investments accounted for using 5(a),
the equity method 7 - 11,301,252 -
Other long-term assets 550,333 2,980,928 518,553
Restricted cash 12,776 4,786,914 517,271
210,697,479 216,358,229 205,162,318
----------- ----------- -----------
Current assets
Inventories 5,843,949 5,197,880 7,151,366
Trade and other receivables 14 30,520,861 42,182,770 49,198,105
Other short-term assets 5,271,823 11,060,707 6,329,354
Current tax assets (net) 1,572,570 3,091,830 1,337,316
Restricted cash 26,895,190 19,513,067 23,030,599
Cash and cash equivalents 15 7,710,151 798,218 2,118,960
Assets Held for Sale 7(b) 51,990,582 - 50,497,664
129,805,126 81,844,472 139,663,364
----------- ----------- -----------
Total assets 340,502,605 298,202,701 344,825,682
=========== =========== ===========
Equity and liabilities
Equity
Share capital 57,024 52,378 57,024
Share premium 129,125,915 125,567,473 129,125,915
Other components of equity 9,562,012 (3,317,105) 2,401,287
Retained earnings 29,566,684 17,949,568 21,916,422
Equity attributable to owners
of the Company 168,311,635 140,252,314 153,500,648
Non-controlling interests 1,485,916 855,915 882,759
Total equity 169,797,551 141,108,229 154,383,407
----------- ----------- -----------
Liabilities
Non-current liabilities
Borrowings 16 43,988,413 56,842,623 51,495,208
Trade and other payables 156,052 21,077,060 14,235,485
Provision for pledged deposits 13,192,917 - 12,627,381
Deferred tax liabilities (net) 4,529,358 1,833,002 2,380,115
61,866,740 79,752,685 80,738,189
----------- ----------- -----------
Current liabilities
Borrowings 16 26,754,827 29,025,604 28,869,722
Trade and other payables 46,210,661 47,550,615 45,474,814
Other liabilities 41,861 765,568 91,764
Liabilities classified as held
for sale 7(b) 35,830,965 - 35,267,786
108,838,314 77,341,787 109,704,086
----------- ----------- -----------
Total liabilities 170,705,054 157,094,472 190,442,275
----------- ----------- -----------
Total equity and liabilities 340,502,605 298,202,701 344,825,682
=========== =========== ===========
The notes are an integral part of these consolidated financial
statements.
The financial statements were authorised for issue by the board
of directors on 27 November 2019 and were signed on its behalf by
Arvind Gupta, Executive Chairman and Dmitri Tsvetkov, Chief
Financial Officer
Consolidated statement of comprehensive
income
For the period ended 30 September
2019
(All amount in GBP, unless otherwise
stated)
Six months
period ended
Six months 30 Sep 2018
period "Restated" Year ended
ended 30 (Refer Notes 31 March
Sep 2019 5(a), 10) 2019
---------------------------------------- ----- ------------ ------------- ------------
Notes
Revenue 78,417,196 77,865,908 140,632,328
Cost of revenue (47,594,626) (54,360,778) (91,753,763)
Gross profit 30,822,570 23,505,130 48,878,565
------------ ------------- ------------
Other income 9 539,467 816,397 2,645,332
Distribution cost (4,900,291) (4,449,571) (8,476,933)
General and administrative expenses (3,634,170) (2,321,076) (6,955,960)
Expected credit loss on trade
receivables (5,213,365) - (790,437)
Depreciation and amortisation (3,212,367) (3,059,313) (6,064,374)
Operating profit 14,401,844 14,491,567 29,236,193
------------ ------------- ------------
Finance costs 10 (5,587,338) (9,002,009) (14,586,917)
Finance income 11 851,944 2,076,678 2,207,480
------------ ------------- ------------
Profit before tax 9,666,450 7,566,236 16,856,756
Tax expense 12 (2,273,982) (804,026) (1,819,387)
------------
Profit for the period from continued
operations 7,392,468 6,762,210 15,037,369
------------ ------------- ------------
Gain/(Loss) from discontinued
operations, including Non-Controlling
Interest 7 854,333 (268,408) (989,493)
Profit for the period 8,246,801 6,493,802 14,047,876
============ ============= ============
Profit for the period attributable
to:
Owners of the Company 7,650,262 6,487,742 14,020,364
Non - controlling interests 596,538 6,060 27,512
8,246,801 6,493,802 14,047,876
============ ============= ============
Earnings per share from continued
operations
Basic earnings per share (in
Pence) 1.90 1.67 4.09
Diluted earnings per share (in
Pence) 1.90 1.67 4.09
Earnings / (Loss) per share from
discontinued operations
Basic earnings per share (in
Pence) 0.07 (0.07) (0.23)
Diluted earnings per share (in
Pence) 0.07 (0.07) (0.23)
Earnings per share
-Basic (in pence) 1.97 1.60 3.81
-Diluted (in pence) 1.97 1.60 3.-81
Other comprehensive income /
(loss)
Items that will be reclassified subsequently
to profit or loss
Financial assets measured at
FVPL
Exchange differences on translating
foreign operations 6,714,854 (4,511,100) 1,207,292
Items that will be not reclassified subsequently to profit
or loss
Exchange differences on translating
foreign operations 6,619 (4,897) 961
Total other comprehensive income
/ (loss) 6,721,473 (4,515,997) 1,208,253
------------ ------------- ------------
Total comprehensive income 14,968,273 1,977,805 15,256,129
============ ============= ============
Total comprehensive income attributable
to:
Owners of the Company 14,365,116 1,976,642 15,227,656
Non-controlling interest 603,157 1,163 28,473
14,968,273 1,977,805 15,256,129
============ ============= ============
The notes are an integral part of these consolidated financial
statements.
The financial statements were authorised for issue by the board
of directors on 27 November 2019 and were signed on its behalf by
Arvind Gupta, Executive Chairman and Dmitri Tsvetkov, Chief
Financial Officer
Consolidated statement of cash
flows
For the period ended 30 Sep
2019
(All amount in GBP, unless
otherwise stated)
Six months
Six months period ended
period 30 Sep 2018
ended "Restated" Year ended
30 Sep (Refer Notes 31 March
Notes 2019 5(a), 10) 2019
Cash flows from operating activities
Profit before income tax 10,520,783 7,297,828 15,867,263
Adjustments for:
(Gain)/Loss from discontinued
operations, net 7 (854,333) 268,408 989,493
Unrealised foreign exchange
Loss/(gain) 832,929 1,585,018 (416,338)
Financial costs 5,587,338 9,002,009 14,586,917
Financial income (841,312) (2,076,678) (2,207,480)
Share based compensation costs 417,911 - -
Depreciation and amortisation 3,212,367 3,059,313 6,064,374
Expected credit loss on Trade
receivables 5,213,365 - 790,437
Changes in working capital
Trade and other receivables 15,433,831 (8,334,431) (16,021,881)
Inventories 1,598,836 4,312,858 2,564,914
Other assets 1,929,393 (1,163,448) 4,752,087
Trade and other payables (16,383,490) (760,992) 2,384,828
Other liabilities (319,257) (10,990) (669,762)
Cash generated from continuing
operations 26,348,361 13,178,895 28,684,851
Taxes paid (333,382) (388,266) (584,390)
------------ ------------- ------------
Cash provided by (used for) operating activities
of continuing operations 26,014,979 12,790,629 28,100,461
Cash provided by (used for) operating activities
of discontinued operations 1,175,440 - (8,256,479)
Net cash provided by (used
for) operating activities 27,190,419 12,790,629 19,843,983
------------ ------------- ------------
Cash flows from investing activities
Purchase of property, plant and equipment
(including capital advances) 51,644 (406,525) (1,515,742)
Interest received 841,312 2,076,677 2,207,480
Movement in restricted cash (2,264,585) 75,143 (1,737,255)
Sale of investments - 4,120 785,222
Purchase of investments (673,944) - -
Advances to associates - (268,998) -
------------ ------------- ------------
Cash from / (used in) investing activities
of continuing operations (2,045,573) 1,480,417 (260,295)
Cash from / (used in) investing activities
of discontinued operations - - (4,346,681)
Net cash from / (used in) investing
activities (2,045,573) 1,480,417 (4,606,976)
------------ ------------- ------------
Cash flows from financing activities
Proceeds from borrowings (net
of costs) (3,355,303) 6,114,016 7,535,858
Repayment of borrowings (9,638,628) (12,753,961) (20,636,875)
Dividend paid - - -
Finance costs paid 10 (5,587,338) (9,002,009) (14,835,536)
------------ ------------- ------------
Cash used in financing activities
of continuing operations (18,581,269) (15,641,954) (27,936,553)
Cash used in financing activities
of discontinued operations (1,502,163) - 12,717,446
Net cash used in financing
activities (20,083,432) (15,641,954) (15,219,107)
------------ ------------- ------------
Net decrease in cash and cash equivalents
from continuing operations 5,388,137 (1,370,908) (96,387)
Net decrease in cash and cash equivalents
from discontinued operations (326,723) - 114,286
------------ ------------- ------------
Net decrease in cash and cash
equivalents 5,061,414 (1,370,908) 17,899
Cash and cash equivalents at the
beginning of the year 2,118,960 2,185,570 2,185,570
Cash and cash equivalents -
solar business 361,747 - 231953
Exchange differences on cash and
cash equivalents 212,718 (16,444) 29,769
Cash and cash equivalents of the
discontinued operations (44,687) - (346,231)
Cash and cash equivalents at
the end of the year 7,710,151 798,218 2,118,960
------------ ------------- ------------
The notes are an integral part of these consolidated financial
statements.
The financial statements were authorised for issue by the board
of directors on 27 November 2019 and were signed on its behalf by
Arvind Gupta, Executive Chairman and Dmitri Tsvetkov, Chief
Financial Officer
Consolidated statement of
changes
in equity
For the period
ended
30 Sep 2019
(All amount in
GBP, unless
otherwise
stated)
Issued Foreign
capital currency Total attributable
(No. of Ordinary Share Other translation Retained to owners Non-controlling
shares) shares premium reserves reserve earnings of parent interests Total equity
------------ -------- ----------- --------- ----------- ----------- ------------------------------ --------------- ------------------------------
At 1 April 2018 356,308,697 52,378 125,567,473 6,650,305 (5,456,310) 11,461,826 138,275,672 854,752 139,130,424
Adjustments on account of - -
deconsolidation
subsidiary
Additions on
consolidation
of new
subsidiary - - - - - (2,680) (2,680) (466) (3,146)
Dividends (Note
21) 31,601,503 4,646 3,558,442 - - (3,563,088) - - -
Transaction
with owners 31,601,503 4,646 3,558,442 - - (3,565,768) (2,680) (466) (3,146)
------------ -------- ----------- --------- ----------- ----------- ------------------------------ --------------- ------------------------------
Profit for the
year - - - - - 14,020,364 14,020,364 27,512 14,047,876
Other
comprehensive
income - - - - 1,207,292 - 1,207,292 961 1,208,253
Total
comprehensive
income - - - - 1,207,292 14,020,364 15,227,656 28,473 15,256,129
------------ -------- ----------- --------- ----------- ----------- ------------------------------ --------------- ------------------------------
At 31 March
2019 387,910,200 57,024 129,125,915 6,650,305 (4,249,018) 21,916,422 153,500,648 882,759 154,383,407
------------ -------- ----------- --------- ----------- ----------- ------------------------------ --------------- ------------------------------
At 01 April
2019 387,910,200 57,024 129,125,915 6,650,305 (4,249,018) 21,916,422 153,500,648 882,759 154,383,407
Dividends - - - - - - - - -
------------ -------- ----------- --------- ----------- ----------- --------------- ------------------------------
Transaction - - - - - - - - -
with owners
------------ -------- ----------- --------- ----------- ----------- ------------------------------ --------------- ------------------------------
Profit for the
period - - - - - 7,650,262 7,650,262 596,538 8,246,800
Other
comprehensive
income - - - 445,871 6,714,854 - 7,160,725 6,619 7,167,344
------------ -------- ----------- ---------
Total
comprehensive
Income - - - 445,871 6,714,854 7,650,262 14,810,987 603,157 15,414,144
------------ -------- ----------- --------- ----------- ----------- ------------------------------ --------------- ------------------------------
At 30 September
2019 387,910,200 57,024 129,125,915 7,096,176 2,465,836 29,566,684 168,311,635 1,485,916 169,797,551
--------------- ------------ -------- ----------- --------- ----------- ----------- ------------------------------ --------------- ------------------------------
At 01 April
2018 356,308,697 52,378 125,567,473 6,650,305 (5,456,310) 11,461,826 138,275,672 854,752 139,130,424
Dividends - - - - - - - - -
------------ -------- ----------- --------- ----------- ----------- ------------------------------ --------------- ------------------------------
Transaction - - - - - - - - -
with owners
------------ -------- ----------- --------- ----------- ----------- ------------------------------ --------------- ------------------------------
Profit for the
period - - - - - 6,487,742 6,487,742 6,060 6,493,802
Other
comprehensive
(loss)
/ income - - - (4,511,100) - (4,511,100) (4,897) (4,515,997)
------------ -------- ----------- ---------
Total
comprehensive
(loss)
/ income - - - - (4,511,100) 6,487,742 1,976,642 1,163 1,977,805
------------ -------- ----------- --------- ----------- ----------- ------------------------------ --------------- ------------------------------
At 30 September
2018 356,308,697 52,378 125,567,473 6,650,305 (9,967,410) 17,949,568 140,252,314 855,915 141,108,229
--------------- ------------ -------- ----------- --------- ----------- ----------- ------------------------------ --------------- ------------------------------
The notes are an integral part of these consolidated financial
statements.
The financial statements were authorised for issue by the board
of directors on 27 November 2019 and were signed on its behalf by
Arvind Gupta, Executive Chairman and Dmitri Tsvetkov, Chief
Financial Officer
Notes to the consolidated financial statements
(All amounts are in GBP, unless otherwise stated)
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.
2. Statement of compliance
The consolidated financial statements of the Group have been
prepared in accordance with International Financial Reporting
Standards (IFRS) and their interpretations as adopted by the
European Union (EU) and the provisions of the Isle of Man,
Companies Act 2006 applicable to companies reporting under
IFRS.
3. 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.
The Consolidated Financial statements for the period ended 30
September 2019 were approved and authorised for issue by the Board
of Directors on 27 November 2019.
4. Recent accounting pronouncements
a) Change in accounting and measurement policies resulting from
IFRS 16
Effective April 1, 2019, the group applied the accounting
standard IFRS 16 "Leases" for the first time. IFRS 16 "Leases"
replaces IAS 17 "Leases" and the corresponding interpretations.
IFRS 16 introduces a uniform lessee accounting model that requires
lessees to recognize all leases in the consolidated balance sheet.
This model mandates that right-of-use assets be recognized for
identified assets and lease liabilities recognized for entered
payment obligations. In accordance with IFRS 16, lease liabilities
to be recognized for leases with the group as a lessee are to be
measured at the present value of the future lease payments. In
accordance with IFRS 16, right-of-use assets are recognized within
property, plant and equipment under the same line item that would
have been used if the underlying asset had been purchased. In
contrast to the previous approach of fully recognizing expenses
from operating leases in the respective functional costs, interest
expenses from the unwinding of the discount on lease liabilities
will in future be recognized in the financial result. The new lease
accounting regulations have no material impact on the consolidated
financial statement of the Group.
5. Summary of significant accounting policies
a) Basis of preparation
The consolidated financial statements of the Group have been
prepared on a historical cost basis, except for financial assets
and liabilities at fair value through profit or loss and financial
assets measured at FVPL.
The consolidated financial statements are presented in
accordance with IAS 1 Presentation of Financial Statements and have
been presented in Great Britain Pounds ('LIR'), the functional and
presentation currency of the Company.
Net foreign exchange loss is attributable to foreign currency
variations on import of coal financed under letter of credit for
power plant operation and was reclassified from General and
Administrative expenses to finance costs in the Consolidated
Statement of Comprehensive Income period ended 30 September 2018,
as all letter of credit related charges and interest are included
in finance cost.
During FY ended 31 March 2019, results of operations of joint
venture Padma Shipping Limited were reclassified to discontinued
operations and accordingly the comparatives for September 2018 were
restated to discontinued operations (LIR10,261) from share of loss
from equity accounted investments (Note 7 (a)).
During FY2019, the Company obtained a right to exercise an
option to buy additional 30% equity interest in solar companies.
This right, in combination with other rights, provided substantive
potential voting rights and investments in solar companies were
re-classified from associates to subsidiaries. During FY2019,
results of operations of associates Avanti Solar Energy Private
Limited, Mayfair Renewable Energy Private Limited, Avanti Renewable
Energy Private Limited and Brics Renewable Energy Private Limited
were reclassified to discontinued operations and accordingly the
comparatives for September 2018 were restated to discontinued
operations (LIR258,147) from share of loss from equity accounted
investments. After evaluation of all options, the Company decided
that the most efficient way to maximise shareholders' value from
solar operations is to dispose solar companies and it initiated
process of disposition of solar companies which met all conditions
of IFRS 5 for classification of solar business as Assets held for
sale at 30 September 2019 and 31 March 2019 (Note7 (b)).
Going concern
As at 30 September 2019 the Group had GBP7.7m in cash and net
current assets of GBP21m. The directors and management have
prepared a cash flow forecast to November 2020, 12 months from the
date this report has been approved.
The Group experiences sensitivity in its cash flow forecasts due
to the exposure to potential increase in USD denominated coal
prices and a decrease in the value of the Indian Rupee. The
directors and management are confident that the group will be
trading in line with its forecast and that any exposure to a
fluctuation in coal prices or the exchange rate INR/USD has been
taken into consideration and therefore prepared the financial
statements on a going concern basis.
b) Basis of consolidation
The consolidated financial statements include the assets,
liabilities, and results of the operation of the Company and all of
its subsidiaries for the period of six months ended 30 September
2019.
A subsidiary is defined as an entity controlled by the Company.
The parent controls a subsidiary if it is exposed, or has rights,
to variable returns from its involvement with the subsidiary and
has the ability to affect those returns through its power over the
subsidiary. Subsidiaries are fully consolidated from the date of
acquisition, being the date on which effective control is acquired
by the Group, and continue to be consolidated until the date that
such control ceases.
All transactions and balances between Group companies are
eliminated on consolidation, including unrealised gains and losses
on transactions between Group companies. Where unrealised losses on
intra-group asset sales are reversed on consolidation, the
underlying asset is also tested for impairment from a group
perspective. Amounts reported in the financial statements of
subsidiaries have been adjusted where necessary to ensure
consistency with the accounting policies adopted by the Group.
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 non-controlling
interests/ other venturer in the Group where there is no loss of
control are accounted for as an equity transaction, 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.
c) Investments in associates and joint ventures
Investments in associates and joint ventures are accounted for
using the equity method. The carrying amount of the investment in
associates and joint ventures is increased or decreased to
recognise the Group's share of the profit or loss and other
comprehensive income of the associate and joint venture, adjusted
where necessary to ensure consistency with the accounting policies
of the Group.
Unrealised gains and losses on transactions between the Group
and its associates and joint ventures are eliminated to the extent
of the Group's interest in those entities. Where unrealised losses
are eliminated, the underlying asset is also tested for
impairment.
d) List of subsidiaries, joint ventures, and associates
Details of the Group's subsidiaries and joint ventures, which
are consolidated into the Group's consolidated financial
statements, are as follows:
% Voting Right % Economic interest
(i) Subsidiaries Immediate Country September March September March
parent of incorporation 2019 2019 2019 2019
---------------------- ----------- ------------------- ---------- ------- ------------ --------
Caromia Holdings
limited ('CHL') OPGPV Cyprus 100.00 100.00 100.00 100.00
Gita Power and
Infrastructure
Private Limited,
('GPIPL') CHL India 100.00 100.00 100.00 100.00
OPG Power Generation
Private Limited
('OPGPG') GPIPL India 72.50 73.49 99.91 99.91
Samriddhi Solar
Power LLP(**) OPGPG India 100.00 100.00 100.00 100.00
Samriddhi Surya
Vidyut Private
Limited OPGPG India 100.00 100.00 100.00 100.00
OPG Surya Vidyut
LLP (**) OPGPG India 100.00 100.00 100.00 100.00
Powergen Resources
Pte Ltd OPGPV Singapore 98.67 98.67 100.00 100.00
Avanti Solar Energy
Private Limited(*) OPGPG India 31.00 31.00 31.00 31.00
Mayfair Renewable
Energy Private
Limited(*) OPGPG India 31.00 31.00 31.00 31.00
Avanti Renewable
Energy Private
Limited(*) OPGPG India 31.00 31.00 31.00 31.00
Brics Renewable
Energy Private
Limited(*) OPGPG India 31.00 31.00 31.00 31.00
(*)During FY2019, the Group obtained a right 'to exercise an
option to buy additional equity interest in solar companies. This
right, in combination with other rights, provided substantive
potential voting rights and investments in solar companies were
re-classified from associates to subsidiaries.
(**) Converted into LLP.
ii) Financial assets measured at FVPL (Assets Held for sale)-
Joint ventures (Note 7(a))
% Voting Right % Economic interest
Country September March September March
Joint ventures Venturer of incorporation 2019 2019 2019 2019
------------------ ----------- ------------------- ---------- ------ ------------- -------
OPGPV
Padma Shipping / OPGPG/
Limited ("PSL") SSVPL Hong Kong 50 50 50 50
------------------ ----------- ------------------- ---------- ------ ------------- -------
e) Foreign currency translation
The functional currency of the Company is the Great Britain
Pound Sterling (GBP). The Cyprus entity is an extension of the
parent and pass through investment entity. Accordingly the
functional currency of the subsidiary 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 Rupees ('
' or 'INR'). The presentation currency of the Group is the Great
Britain Pound (GBP) as submitted to the AIM counter of the London
Stock Exchange 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 at the rate of
exchange prevailing at the reporting date and the income and
expense for each statement of profit or loss are translated at the
average exchange rate (unless this average rate is not a reasonable
approximation of the cumulative effect of the rates prevailing on
the transaction dates, in which case income and expense are
translated at the rate on the date of the transactions). 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 prevailing 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.
INR exchange rates used to translate the INR financial
information into the presentation currency of Great Britain Pound
(GBP) are the closing rate as at 30 September 2019: 86.41 (31 March
2019: 90.28; 30 September 2018 : 94.21) and the average rate for
the period ended 30 September 2019: 87.97 (31 March 2019: 91.60; 30
September 2018: 91.04)
f) Revenue recognition
The Group's accounting policies for Revenue have changed during
the year, following adoption of IFRS 15 however, the application of
IFRS 15 does not have any impact on the recognition and measurement
of revenue and related items. Revenue from contracts with customers
is recognised to the extent that it reflects the expected
consideration for goods or services provided to the customer under
contract, over the performance obligations they are being provided.
For each separable performance obligation identified, the Group
determines whether it is satisfied at a "point in time" or "over
time" based upon an evaluation of the receipt and consumption of
benefits, control of assets and enforceable payment rights
associated with that obligation. If the criteria required for "over
time" recognition are not met, the performance obligation is deemed
to be satisfied at a "point in time". Revenue principally arises as
a result of the Group's activities in electricity generation and
distribution. Supply of power and billing satisfies performance
obligations. The supply of power is invoiced in arrears on a
monthly basis and generally the payment terms within the Group are
30 days.
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 and reflecting the applicable
customer tariff after deductions or discounts.
Interest and dividend
Revenue from interest is recognised as interest accrued (using
the effective interest rate method). Revenue from dividends is
recognised when the right to receive the payment is
established.
g) Operating expenses
Operating expenses are recognised in the statement of profit or
loss upon utilisation of the service or as incurred.
h) Taxes
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.
Current income tax assets and/or liabilities comprise those
obligations to, or claims from, taxation authorities relating to
the current or prior reporting periods, that are unpaid at the
reporting date. Current tax is payable on taxable profit, which
differs from profit or loss in the financial statements.
Calculation of current tax is based on tax rates and tax laws
that have been enacted or substantively enacted by the end of the
reporting period.
Deferred income taxes are calculated using the liability method
on temporary differences between the carrying amounts of assets and
liabilities and their tax bases. However, deferred tax is not
provided on the initial recognition of goodwill, nor on the initial
recognition of an asset or liability unless the related transaction
is a business combination or affects tax or accounting profit.
Deferred tax on temporary differences associated with investments
in subsidiaries is not provided if reversal of these temporary
differences can be controlled by the Group and it is probable that
reversal will not occur in the foreseeable future.
Deferred tax assets and liabilities are calculated, without
discounting, at tax rates that are expected to apply to their
respective period of realisation, provided they are enacted or
substantively enacted by the end of the reporting period. Deferred
tax liabilities are always provided for in full.
Deferred tax assets are recognised to the extent that it is
probable that they will be able to be utilised against future
taxable income. Deferred tax assets and liabilities are offset only
when the Group has a right and the intention to set off current tax
assets and liabilities from the same taxation authority. Changes in
deferred tax assets or liabilities are recognised as a component of
tax income or expense in profit or loss, except where they relate
to items that are recognised in other comprehensive income or
directly in equity, in which case the related deferred tax is also
recognised in other comprehensive income or equity,
respectively.
i) Financial assets
IFRS 9 Financial Instruments (2014) replaces the previous
regulations of IAS 39 on financial instruments. The standard
contains amended regulations on measurement categories for
financial assets and includes some smaller changes in relation to
the measurement of financial liabilities. It also contains
regulations on impairments, which are based on expected losses for
the first time. The new regulations on hedge accounting should
improve the presentation of risk management activities in the
consolidated financial statements. In line with the transitional
regulations of IFRS 9, the prior-year carrying amounts are not
adjusted. The application of the new classification and valuation
regulations and the recognition of the associated effects of the
changeover occur through the adjustment of the carrying amounts of
the financial assets and liabilities as well as retained earnings
as of 1 April 2018.
IFRS 9 includes new rules for classifying financial instruments,
which basically envisage four valuation categories:
-- Debt instruments measured at amortised cost
-- Debt instruments measured at fair value through other
comprehensive income, the changes in value of which are recognised
with an effect on income (recycling) upon disposal
-- Equity instruments measured at fair value through other
comprehensive income, the changes in value of which remain in
equity and are not recognised in profit or loss (no recycling) upon
disposal
-- Financial instruments measured at fair value through profit
or loss
IFRS 9 also contains new regulations on the impairment of
financial assets, which stipulate that such be based on expected
losses.
j) Financial liabilities
The Group's financial liabilities include borrowings and trade
and other payables. Financial liabilities are measured subsequently
at amortised cost using the effective interest method. All
interest-related charges and, if applicable, changes in an
instrument's fair value that are reported in profit or loss are
included within 'finance costs' or 'finance income'.
k) Fair value of financial instruments
The fair value of financial instruments that are actively traded
in organised financial markets is determined by reference to quoted
market prices at the close of business on the Statement of
financial position date. For financial instruments where there is
no active market, fair value is determined using valuation
techniques. Such techniques may include using recent arm's length
market transactions; reference to the current fair value of another
instrument that is substantially the same; discounted cash flow
analysis or other valuation models.
l) Property, plant and equipment
Property, plant and equipment are stated at historical cost,
less accumulated depreciation and any impairment in value.
Historical cost includes expenditure that is directly attributable
to property plant & equipment such as employee cost, borrowing
costs for long-term construction projects etc, if recognition
criteria are met. Likewise, when a major inspection is performed,
its costs are recognised in the carrying amount of the plant and
equipment as a replacement if the recognition criteria are
satisfied. All other repairs and maintenance costs are recognised
in the profit or loss as incurred.
Land is not depreciated. Depreciation on all other assets is
computed on straight-line basis over the useful life of the asset
based on management's estimate as follows:
Nature of asset Useful life (years)
--------------------------- --------------------
Buildings 40
Power stations 40
Other plant and equipment 3-10
Vehicles 5-11
--------------------------- --------------------
Assets in the course of construction are stated at cost and not
depreciated until commissioned.
An item of property, plant and equipment is derecognised upon
disposal or when no future economic benefits are expected from its
use or disposal. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the
profit or loss in the year the asset is derecognised.
The assets residual values, useful lives and methods of
depreciation of the assets are reviewed at each financial year end,
and adjusted prospectively if appropriate.
m) Intangible assets
Acquired software
Acquired computer software licences are capitalised on the basis
of the costs incurred to acquire and install the specific
software.
Subsequent measurement
All intangible assets, including software are accounted for
using the cost model whereby capitalised costs are amortised on a
straight-line basis over their estimated useful lives, as these
assets are considered finite. Residual values and useful lives are
reviewed at each reporting date. The useful life of software is
estimated as 4 years.
n) Leases
Effective April 1, 2019, the group applied the accounting
standard IFRS 16 "Leases" for the first time. IFRS 16 "Leases"
replaces IAS 17 "Leases" and the corresponding interpretations.
IFRS 16 introduces a uniform lessee accounting model that requires
lessees to recognize all leases in the consolidated balance sheet.
This model mandates that right-of-use assets be recognized for
identified assets and lease liabilities recognized for entered
payment obligations. In accordance with IFRS 16, lease liabilities
to be recognized for leases with the group as a lessee are to be
measured at the present value of the future lease payments. In
accordance with IFRS 16, right-of-use assets are recognized within
property, plant and equipment under the same line item that would
have been used if the underlying asset had been purchased. In
contrast to the previous approach of fully recognizing expenses
from operating leases in the respective functional costs, interest
expenses from the unwinding of the discount on lease liabilities
will in future be recognized in the financial result.
o) Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, that necessarily
take a substantial period of time to get ready for their intended
use or sale, are added to the cost of those assets. Interest income
earned on the temporary investment of specific borrowing pending
its expenditure on qualifying assets is deducted from the costs of
these assets.
Gains and losses on extinguishment of liability, including those
arising from substantial modification from terms of loans are not
treated as borrowing costs and are charged to profit or loss.
All other borrowing costs including transaction costs are
recognized in the statement of profit or loss in the period in
which they are incurred, the amount being determined using the
effective interest rate method.
p) Impairment of non-financial assets
The Group assesses at each reporting date whether there is an
indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is required,
the Group estimates the asset's recoverable amount. An asset's
recoverable amount is the higher of an asset's or cash-generating
unit's (CGU) fair value less costs to sell and its value in use and
is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from
other assets or Groups of assets. Where the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money
and the risks specific to the asset. In determining fair value less
costs to sell, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples, quoted share
prices for publicly traded subsidiaries or other available fair
value indicators.
For assets excluding goodwill, an assessment is made at each
reporting date as to whether there is any indication that
previously recognised impairment losses may no longer exist or may
have decreased. If such indication exists, the Group estimates the
asset's or cash-generating unit's recoverable amount. A previously
recognised impairment loss is reversed only if there has been a
change in the assumptions used to determine the asset's recoverable
amount since the last impairment loss was recognised. The reversal
is limited so that the carrying amount of the asset does not exceed
its recoverable amount, nor exceed the carrying amount that would
have been determined, net of depreciation, had no impairment loss
been recognised for the asset in prior years. Such reversal is
recognised in the profit or loss.
q) Non-current assets held for sale and discontinued
operations
Non-current assets and any corresponding liabilities held for
sale and any directly attributable liabilities are recognized
separately from other assets and liabilities in the balance sheet
in the line items "Assets held for sale" and "Liabilities
associated with assets held for sale" if they can be disposed of in
their current condition and if there is sufficient probability of
their disposal actually taking place. Discontinued operations are
components of an entity that are either held for sale or have
already been sold and can be clearly distinguished from other
corporate operations, both operationally and for financial
reporting purposes. Additionally, the component classified as a
discontinued operation must represent a major business line or a
specific geographic business segment of the Group. Non-current
assets that are held for sale either individually or collectively
as part of a disposal group, or that belong to a discontinued
operation, are no longer depreciated. They are instead accounted
for at the lower of the carrying amount and the fair value less any
remaining costs to sell. If this value is less than the carrying
amount, an impairment loss is recognized. The income and losses
resulting from the measurement of components held for sale as well
as the gains and losses arising from the disposal of discontinued
operations, are reported separately on the face of the income
statement under income/loss from discontinued operations, net, as
is the income from the ordinary operating activities of these
divisions. Prior-year income statement figures are adjusted
accordingly. However, there is no reclassification of prior-year
balance sheet line items attributable to discontinued
operations.
r) Cash and cash equivalents
Cash and cash equivalents in the Statement of financial position
includes cash in hand and at bank and short-term deposits with
original maturity period of 3 months or less.
For the purpose of the consolidated cash flow statement, cash
and cash equivalents consist of cash in hand and at bank and
short-term deposits. Restricted cash represents deposits which are
subject to a fixed charge and held as security for specific
borrowings and are not included in cash and cash equivalents.
s) Inventories
Inventories are stated at the lower of cost and net realisable
value. Costs incurred in bringing each product to its present
location and condition is accounted based on weighted average
price. Net realisable value is the estimated selling price in the
ordinary course of business, less estimated selling expenses.
t) Earnings per share
The earnings considered in ascertaining the Group's earnings per
share (EPS) comprise the net profit for the year attributable to
ordinary equity holders of the parent. The number of shares used
for computing the basic EPS is the weighted average number of
shares outstanding during the year. For the purpose of calculating
diluted earnings per share the net profit or loss for the period
attributable to equity shareholders and the weighted average number
of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity share.
u) Other provisions and contingent liabilities
Provisions are recognised when present obligations as a result
of a past event will probably lead to an outflow of economic
resources from the Group and amounts can be estimated reliably.
Timing or amount of the outflow may still be uncertain. A present
obligation arises from the presence of a legal or constructive
obligation that has resulted from past events. Restructuring
provisions are recognised only if a detailed formal plan for the
restructuring has been developed and implemented, or management has
at least announced the plan's main features to those affected by
it. Provisions are not recognised for future operating losses.
Provisions are measured at the estimated expenditure required to
settle the present obligation, based on the most reliable evidence
available at the reporting date, including the risks and
uncertainties associated with the present obligation. Where there
are a number of similar obligations, the likelihood that an outflow
will be required in settlement is determined by considering the
class of obligations as a whole. Provisions are discounted to their
present values, where the time value of money is material.
Any reimbursement that the Group can be virtually certain to
collect from a third party with respect to the obligation is
recognised as a separate asset. However, this asset may not exceed
the amount of the related provision. All provisions are reviewed at
each reporting date and adjusted to reflect the current best
estimate.
In those cases where the possible outflow of economic resources
as a result of present obligations is considered improbable or
remote, no liability is recognised, unless it was assumed in the
course of a business combination. In a business combination,
contingent liabilities are recognised on the acquisition date when
there is a present obligation that arises from past events and the
fair value can be measured reliably, even if the outflow of
economic resources is not probable. They are subsequently measured
at the higher amount of a comparable provision as described above
and the amount recognised on the acquisition date, less any
amortisation.
v) Share based payments
The Group operates equity-settled share-based remuneration plans
for its employees. None of the Group's plans feature any options
for a cash settlement.
All goods and services received in exchange for the grant of any
share-based payment are measured at their fair values. Where
employees are rewarded using share-based payments, the fair values
of employees' services is determined indirectly by reference to the
fair value of the equity instruments granted. This fair value is
appraised at the grant date and excludes the impact of non-market
vesting conditions (for example profitability and sales growth
targets and performance conditions).
All share-based remuneration is ultimately recognised as an
expense in profit or loss with a corresponding credit to 'Other
Reserves'.
If vesting periods or other vesting conditions apply, the
expense is allocated over the vesting period, based on the best
available estimate of the number of share options expected to vest.
Non-market vesting conditions are included in assumptions about the
number of options that are expected to become exercisable.
Estimates are subsequently revised if there is any indication that
the number of share options expected to vest differs from previous
estimates. Any cumulative adjustment prior to vesting is recognised
in the current period. No adjustment is made to any expense
recognised in prior periods if share options ultimately exercised
are different to that estimated on vesting.
Upon exercise of share options, the proceeds received net of any
directly attributable transaction costs up to the nominal value of
the shares issued are allocated to share capital with any excess
being recorded as share premium.
w) Employee benefits
Gratuity
In accordance with applicable Indian laws, the Group provides
for gratuity, a defined benefit retirement plan ("the Gratuity
Plan") covering eligible employees. The Gratuity Plan provides a
lump-sum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount based on
the respective employee's salary and the tenure of employment.
Liabilities with regard to the gratuity plan are determined by
actuarial valuation, performed by an independent actuary, at each
Statement of financial position date using the projected unit
credit method.
The Group recognises the net obligation of a defined benefit
plan in its statement of financial position as an asset or
liability, respectively in accordance with IAS 19, Employee
benefits. The discount rate is based on the Government securities
yield. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are charged or
credited to profit or loss in the statement of comprehensive income
in the period in which they arise.
x) Business combinations
Business combinations arising from transfers of interests in
entities that are under the control of the shareholder that
controls the Group are accounted for as if the acquisition had
occurred at the beginning of the earliest comparative period
presented or, if later, at the date that common control was
established using pooling of interest method. The assets and
liabilities acquired are recognised at the carrying amounts
recognised previously in the Group controlling shareholder's
consolidated financial statements. The components of equity of the
acquired entities are added to the same components within Group
equity. Any excess consideration paid is directly recognised in
equity.
y) Segment reporting
The Group is primarily involved in business of power generation.
Considering the nature of Group's business, as well as based on
reviews by the chief operating decision maker to make decisions
about resource allocation and performance measurement, there are
only two reportable segments in accordance with the requirements of
IFRS 8.
6. Significant accounting judgements, estimates and
assumptions
The preparation of financial statements in conformity with IFRS
requires management to make certain critical accounting estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period.
The principal accounting policies adopted by the Group in the
consolidated financial statements are as set out above. The
application of a number of these policies requires the Group to use
a variety of estimation techniques and apply judgment to best
reflect the substance of underlying transactions.
The Group has determined that a number of its accounting
policies can be considered significant, in terms of the management
judgment that has been required to determine the various
assumptions underpinning their application in the consolidated
financial statements presented which, under different conditions,
could lead to material differences in these statements. The actual
results may differ from the judgments, estimates and assumptions
made by the management and will seldom equal the estimated
results.
a) Judgements
The following are significant management judgments in applying
the accounting policies of the Group that have the most significant
effect on the financial statements.
Assessing control of subsidiaries, associates, joint
ventures
During FY2019, the Company obtained a right to exercise an
option to buy additional 30% equity interest in the solar
companies. This right, in combination with other rights, provided
substantive potential voting rights and the investments in the
solar companies were re-classified from associates to subsidiaries.
Subsequently, the results of operations of Avanti Solar Energy
Private Limited, Mayfair Renewable Energy Private Limited, Avanti
Renewable Energy Private Limited and Brics Renewable Energy Private
Limited were reclassified to discontinued operations.
Non-current assets held for sale and discontinued operations
The Group exercises judgement in whether assets are held for
sale. After evaluation of all options, the Company decided that the
most efficient way to maximise shareholders' value from solar
operations is to dispose of the solar companies and it initiated
the process of disposition of the solar companies. Under IFRS 5,
such a transaction meets the 'Asset held for sale' when the
transaction is considered sufficiently probable and other relevant
criteria are met. Management consider that all the conditions under
IFRS 5 for classification of the solar business as held for sale
have been met as at 31 March 2019 and expects the interest in the
solar companies to be sold within the next 12 months.
The investment in the joint venture Padma Shipping Limited and
associated advance has been presented as asset held for sale
following the process of sale of the second vessel as mentioned in
note 7(a)
b) Estimates and uncertainties
The key assumptions concerning the future and other key sources
of estimation uncertainty at the Statement of financial position
date, that have a significant risk of causing material adjustments
to the carrying amounts of assets and liabilities within the next
financial year are discussed below:
i) Recoverability of deferred tax assets: The recognition of
deferred tax assets requires assessment of future taxable profit.
(see note 5(h)).
ii) Estimation of fair value of financial assets and financial
liabilities: While preparing the financial statements the Group
makes estimates and assumptions that affect the reported amount of
financial assets and financial liabilities.
Trade receivables
The group ascertains the expected credit losses (ECL) for all
receivables and adequate impairment provision are made. At the end
of each reporting period a review of the allowance for impairment
of trade receivables is performed. Trade receivables do not contain
a significant financing element, and therefore expected credit
losses are measured using the simplified approach permitted by IFRS
9, which requires lifetime expected credit losses to be recognised
on initial recognition. A provision matrix is utilised to estimate
the lifetime expected credit losses based on the age, status and
risk of each class of receivable, which is periodically updated to
include changes to both forward-looking and historical inputs.
Assets held for sale - Financial assets measured at FVPL
Valuation of Investment in joint venture Padma Shipping is based
on estimates and subject to uncertainties (Note 7(a)).
Financial assets measured at FVPL
Management applies valuation techniques to determine the fair
value of available for sale financial assets where active market
quotes are not available. This requires management to develop
estimates and assumptions based on market inputs, using observable
data that market participants would use in pricing the asset. Where
such data is not observable, management uses its best estimate.
Estimated fair values of the asset may vary from the actual prices
that would be achieved in an arm's length transaction at the
reporting date.
Other financial liabilities
Borrowings held by the Group are measured at amortised cost (see
note 5(j) and note 16).
iii) Impairment tests: In assessing impairment, management
estimates the recoverable amount of each asset or cash-generating
units based on expected future cash flows and use an interest rate
for discounting them. Estimation uncertainty relates to assumptions
about future operating results including fuel prices, foreign
currency exchange rates etc. and the determination of a suitable
discount rate;
iv) Useful life of depreciable assets: Management reviews its
estimate of the useful lives of depreciable assets at each
reporting date, based on the expected utility of the assets.
7. Non-current asset held for sale and discontinued
operation
a) Investment in joint venture Padma Shipping Limited -
classified as held for sale
In 2014 the Company entered into a Joint Venture agreement with
Noble Chartering Ltd ("Noble"), to secure competitive long term
rates for international freight for its imported coal requirements.
Under the Arrangement, the company and Noble agreed to jointly
purchase and operate two 64,000 MT cargo vessels through a Joint
venture company Padma Shipping Ltd, Hong Kong ('Padma').
During FY18, the Joint Venture partner due to a change in their
group strategy requested for the Joint Venture to be terminated and
as the vessels were still under Construction, OPG agreed with this
proposal. During FY2019 one of the vessels was sold by the shipping
yard and the second vessel was in the process of being sold. The
Padma joint venture will be terminated and dissolved following the
sale of the second vessel. As at 31 March 2019, the investment was
therefore reclassified to assets held for sale. The second vessel
was sold post year end.
OPG has invested approximately GBP3,484,178 in equity and
GBP1,727,418 to date as advance and accordingly the joint venture
has been reported using equity method as per the requirements of
IFRS 11. The Company provided corporate guarantee for 50% of equity
portion of the cost of construction of the vessels remaining
balance in amount of GBP2,006,035 (equivalent of $2,800,000) which
was recognised in these financial statements as part of the prior
year provision of GBP3,247,668 as the shipping yard requested
payment. Following the sale of the first vessel the corporate
guarantee of $2,800,000 was effectively released. During the FY
2019 the Company recognised an impairment provision of GBP1,000,000
against its advance of GBP1,727,418 (note 7(a)) on account of the
impending dissolution of the JV and GBP10,200 share of loss. The
carrying value of OPG's investment in the Padma joint venture,
including the advance provided, of GBP918,432 was classified as
Assets held for sale in the Consolidated Statement of Financial
Position as at 30 September 2019 and at 31 March 2019 and the
results of Padma's operations were included in Loss from
discontinued operations in the Consolidated Statement of
Comprehensive Income.
b) Assets held for sale and discontinued operations of solar
subsidiaries
During FY2019, the Company obtained a right to exercise an
option to buy additional 30% equity interest in the solar companies
following the achievement of the conditions precedent. This right,
in combination with other rights, provided substantive potential
voting rights and the investments in the solar companies were
re-classified from associates to subsidiaries in FY2019. During
FY2019, the results of the operations of Avanti Solar Energy
Private Limited, Mayfair Renewable Energy Private Limited, Avanti
Renewable Energy Private Limited and Brics Renewable Energy Private
Limited were therefore consolidated. After evaluation of all the
options, the Company decided that the most efficient way to
maximise shareholders' value from the solar operations is to
dispose of the solar companies and the process of disposition of
the solar companies was initiated. Management expects the interest
in the solar companies to be sold within the next 12 months.
Accordingly, the assets and liabilities relating to Avanti Solar
Energy Private Limited, Mayfair Renewable Energy Private Limited,
Avanti Renewable Energy Private Limited and Brics Renewable Energy
Private Limited have been presented as held for sale. There was no
gain or loss associated with the reclassification.
Non-current Assets held-for-sale and discontinued operations
(a) Assets of disposal group classified as held-for-sale
As at As at
30 September 31 March
2019 2019
Property, plant and equipment 48,721,535 46,442,294
Trade and other receivables 699,565 578,721
Other short-term assets 363,362 499,527
Restricted cash 1,237,125 1,712,450
Cash and cash equivalents 50,563 346,240
Investment in Joint venture classified as
held for sale 918,432 918,432
-------------- -----------
Total 51,990,582 50,497,664
---------------------------------------------- -------------- -----------
(b) Liabilities of disposal group classified as
held-for-sale
As at As at
30 September 31 March
2019 2019
Non Current liabilities
Borrowings 18,832,782 17,194,745
Trade and other payables 9,745,988 7,710,956
Deferred tax liability 1,767,680 1,666,495
Current liabilities
Trade and other payables 1,351,255 3,958,192
Other liabilities 4,133,261 4,737,398
----------------------------- -------------- -----------
Total 35,830,965 35,267,786
----------------------------- -------------- -----------
(c) Analysis of the results of discontinued operations is as
follows:
For six
months period For six months
ended Sep period ended
19 For FY 19 Sep 18(*)
Solar Business
Revenue 2,490,019 5,007,509 490,560
Operating profit before impairments 2,334,873 4,321,228 343,054
Finance cost (1,468,304) (2,294,669) (341,660)
Current Tax (12,236) (363,372) (3,390)
Deferred tax - (1,642,480) (256,150)
--------------- ------------ ---------------
Gain/(Loss) from Solar business 854,333 20,707 (258,147)
Share of loss from Padma Shipping
Limited - (1,010,200) (10,261)
Gain/(Loss ) after tax of discontinued
operations attributable to owners
of the Company 854,333 (989,493) (268,408)
---------------------------------------- --------------- ------------ ---------------
(*) for solar business, share of loss from equity accounted
investments alone considered.
8. Segment reporting
The Group has adopted the "management approach" in identifying
the operating segments as outlined in IFRS 8 - Operating segments.
Segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker. The chief
operating decision maker evaluates the Group's performance and
allocates resources based on an analysis of various performance
indicators at operating segment level. Accordingly, there are two
operating segments, thermal power and solar power following the
reclassification of the interest in the solar companies as
subsidiaries as detailed in note 7(b). The solar power business was
classified as held for sale subsequently. There are no geographical
segments as all revenues arise from India.
Revenue on account of sale of power to one customer exceeding
10% of total sales revenue amounts to GBP12,124,876 (2019:
GBP18,894,360).
Segmental information disclosure
Continuing operations Discontinued operations
Thermal Solar
Segment Revenue Sep-19 Sep-18 FY2019 Sep-19 Sep-18(*) FY2019
Sales 78,417,196 77,865,908 140,632,328 2,490,019 490,560 5,007,509
------------ ------------ ------------- ------------ ----------- ------------
Total 78,417,196 77,865,908 140,632,328 2,490,019 490,560 5,007,509
------------ ------------ ------------- ------------ ----------- ------------
Depreciation (3,212,367) (3,059,313) (6,064,374) - -
Impairment - - -
Profit / (loss)
from operation 14,401,844 14,491,567 29,236,193 2,334,873 343,054 4,009,485
Finance Income 851,944 2,076,678 2,207,480 311,744
Finance Cost (5,587,338) (9,002,009) (14,586,917) (1,468,304) (341,660) (2,294,669)
Tax expenses (2,273,982) (804,026) (1,819,387) (12,236) (259,541) (2,005,852)
Profit / (loss)
for the year 7,392,468 6,762,210 15,037,369 854,333 (258,147) 20,708
------------ ------------ ------------- ------------ ----------- ------------
Assets 288,512,023 286,901,449 294,328,018 51,072,149 11,301,252 49,579,232
Liabilities 134,874,089 157,094,472 155,174,489 35,830,965 - 35,267,786
(*) for solar business, Share of loss from equity accounted
investments alone considered
9. Other income and expenses
30 Sep 30 Sep 31 March
Other income 2019 2018 2019
--------------------------------------------- -------- -------- ----------
Sale of coal 312,908 158,821 887,816
Sale of fly ash 1,828 31,269 48,910
Power trading commission and other services 20,631 355,463 1,217,369
Others 204,100 270,844 491,237
Total 539,467 816,397 2,645,332
--------------------------------------------- -------- -------- ----------
10. Finance costs
30 Sep 30 Sep 31 March
Finance costs are comprised of: 2019 2018 2019
--------------------------------- ---------- ---------- -----------
Interest expenses on borrowings 4,778,805 5,338,513 10,210,464
Net foreign exchange loss 266,286 3,193,391 3,126,825
Other finance costs 542,247 470,105 1,249,628
Total 5,587,338 9,002,009 14,586,917
--------------------------------- ---------- ---------- -----------
11. Finance income
30 Sep 30 Sep 31 March
2019 2018 2019
---------------------------------------------- -------- ---------- ----------
Interest income on bank deposits 851,944 2,076,678 2,192,555
Profit on disposal of financial instruments* - - 14,925
Total 851,944 2,076,678 2,207,480
---------------------------------------------- -------- ---------- ----------
* Financial instruments represent mutual funds held during the
year.
12. Tax expense
30 Sep 30 Sep 31 March
2019 2018 2019
------------------------------------------------ ---------- -------- ----------
Current tax 267,559 428,233 1,281,584
Deferred tax 2,006,423 375,793 537,803
Tax reported in the statement of comprehensive
income 2,273,982 804,026 1,819,387
------------------------------------------------ ---------- -------- ----------
The Company is subject to Isle of Man corporate tax at the
standard rate of zero percent. As such, the Company's tax liability
is zero. Additionally, Isle of Man does not levy tax on capital
gains. However, considering that the group's operations are
entirely based in India, the effective tax rate of the Group has
been computed based on the current tax rates prevailing in India.
Further, a substantial portion of the profits of the Group's India
operations are exempt from Indian income taxes being profits
attributable to generation of power in India. Under the tax holiday
the taxpayer can utilize an exemption from income taxes for a
period of any ten consecutive years out of a total of fifteen
consecutive years from the date of commencement of the operations.
However, the entities in India are still liable for Minimum
Alternate Tax which is calculated on the book profits of the
respective entities currently at a rate of 17.47% (31 March 2019:
21.34%).
13.
a) Intangible assets
30 Sep 30 Sep
As At 2019 31 Mar 2019 2018
-------- ------------ ---------
Cost
Opening 852,624 847,648 847,648
Additions - - -
Deletions - - -
Exchange adjustments 38,187 4,976 (30,591)
-------- ------------ ---------
Total 890,811 852,624 817,057
Accumulated depreciation and impairment
-------- ------------
Opening 829,021 783,478 783,478
Charge for the year 7,327 40,354 19,531
Exchange adjustments 37,262 5,190 (28,933)
-------- ------------ ---------
Total 873,610 829,021 774,076
-------- ------------ ---------
Net book value 17,201 23,603 42,981
======== ============ =========
b) Property, plant and equipment
Other Assets
Land Power plant Solar under
& Buildings stations & equipment Vehicles assets construction Total
------------- ------------ ------------- ---------- ------------- -------------- -------------
Cost
At 1 April 2018 4,744,093 221,066,874 614,925 2,394,639 - 4,530,760 233,351,291
Additions 236,830 316,648 1,154,749 8,751 - 18,803 1,735,781
Additions solar
assets,
Note 7(b) - - - - 46,635,849 - 46,635,849
Deletions - (11,054) - - - - (11,054)
Solar assets
held
for sale,
Note 7(b) - - - - (46,635,849) - (46,635,849)
Transfers on
capitalisation - 290,658 - - (290,658) -
Exchange
adjustments 26,978 1,297,928 3,595 14,023 - 26,959 1,369,483
At 31 March
2019 5,007,901 222,961,054 1,773,269 2,417,413 - 4,285,864 236,445,501
Additions 3,851 11,472 113,215 199,542 328,080
Exchange
adjustments 225,200 9,997,059 67,884 108,303 - 10,398,446
At 30 September
2019 5,236,952 232,969,585 1,954,368 2,525,716 - 4,485,406 247,172,027
------------- ------------ ------------- ---------- ------------- -------------- -------------
Accumulated depreciation and
impairment
At 1 April 2018 32,174 24,456,188 526,100 1,065,694 - - 26,080,156
Charge for the
year 12,363 5,494,384 103,316 413,957 - - 6,024,020
Additions solar
assets,
Note 7(b) - - - - 4,417 - 4,417
Exchange
adjustments 493 221,076 4,595 12,270 - - 238,434
Solar assets
held
for sale,
Note 7(b) - - - - (4,417) (4,417)
At 31 March
2019 45,030 30,171,648 634,011 1,491,921 - - 32,342,610
Charge for the
period 6,632 2,864,597 134,822 198,989 - - 3,205,040
Exchange
adjustments 2,008 1,406,336 28,413 70,451 - - 1,507,208
At 30 September
2019 53,670 34,442,581 797,246 1,761,361 - - 37,054,858
------------- ------------ ------------- ---------- ------------- -------------- -------------
Net book value
At 30 September
2019 5,183,282 198,527,004 1,157,122 764,355 - 4,485,406 210,117,169
At 31 March
2019 4,962,871 192,789,406 1,139,258 925,492 - 4,285,864 204,102,891
At 30 September
2018 4,553,672 186,883,709 50,960 1,088,145 - 4,669,668 197,246,154
------------- ------------ ------------- ---------- ------------- -------------- -------------
14. Trade and other receivables
30 Sep 30 Sep 31 March
2019 2018 2019
------------------- ----------- ----------- -----------
Current
Trade receivables 29,481,117 40,990,171 32,455,254
Unbilled revenues 939,059 1,107,664 16,624,328
Other receivables 100,686 84,935 118,523
30,520,861 42,182,770 49,198,105
------------------- ----------- ----------- -----------
Trade receivables that are neither past due nor impaired
represents billings for the month of September 2019. Trade
receivables as on 30 September 2019 are net off GBP 13,185,113
being the security deposit received from customers.
Expected Credit Loss ("ECL") recognised in profit or (loss)
during the period ended 30 September 2019 of GBP 5,213,365
(September 2018 -NIL, FY2019 GBP790,437). ECL are measured using
the simplified approach permitted by IFRS 9, which requires
lifetime ECL to be recognised. The Group determined that for
certain trade receivables an impairment provision have to be
recognised as they deemed to be not recoverable and also due to
dispute regarding particular contractual terms.
The age analysis of the (overdue) trade receivables is as
follows:
Past due but not impaired
-------- ----------- -------------- ----------------------------
Neither past
due Within 180
Period Total nor impaired days Over 180 days
-------- ----------- -------------- ------------ --------------
Sep-19 30,520,861 10,648,514 11,698,654 8,173,693
Mar-19 49,198,105 26,710,178 17,982,630 4,505,297
Sep-18 42,182,770 15,628,017 13,328,000 13,226,753
-------- ----------- -------------- ------------ --------------
The movement in the provision for trade receivables is as
follows:
Provision for the
Period Opening balance year Closing balance
-------- ---------------- ------------------ ----------------
Sep-19 1,061,553 5,213,365 6,274,918
Mar-19 271,116 790,437 1,061,553
Sep-18 271,116 - 271,116
-------- ---------------- ------------------ ----------------
The creation of provision for impaired receivables of GBP271,116
for FY 2017-18 has been included in general and administrative
expenses in the consolidated statement of comprehensive income.
Amounts charged to the allowance account are generally written off,
when there is no expectation of recovering additional cash. The
maximum exposure to credit risk at the reporting date is the
carrying value of each class of receivable mentioned above.
15. Cash and cash equivalents
Cash and short term deposits comprise of the following:
30 Sep 2019 30 Sep 2018 31 March
2019
--------------------------- ------------ ------------ ----------
Cash at banks and on hand 2,139,037 798,218 2,118,960
Short-term deposits 5,571,114 - -
7,710,151 798,218 2,118,960
--------------------------- ------------ ------------ ----------
Short-term deposits are placed for varying periods, depending on
the immediate cash requirements of the Group. They are recoverable
on demand.
16. Borrowings
The borrowings comprise of the following:
30 Sep 2019 30 Sep 2018 31 March
2019
-------------------------------- ------------ ------------ -----------
Term loans at amortised cost
and cash credit loans at cost 70,743,240 85,868,227 80,364,930
-------------------------------- ------------ ------------ -----------
Total 70,743,240 85,868,227 80,364,930
-------------------------------- ------------ ------------ -----------
The borrowings are reconciled to the statement of financial
position as follows:
30 Sep 2019 30 Sep 2018 31 March
2019
--------------------------------- ------------ ------------ -----------
Current liabilities
Amounts falling due within
one year 26,754,827 29,025,604 28,869,722
Non-current liabilities
Amounts falling due after 1
year but not more than 5 years 43,988,413 56,842,623 51,495,208
Total 70,743,240 85,868,227 80,364,930
--------------------------------- ------------ ------------ -----------
17. Share based payments
Share options
The board has granted share options to directors and nominees of
directors which are limited to 10 percent of the group's share
capital. Once granted, the share must be exercised within ten years
of the date of grant otherwise the options would lapse.
The vesting conditions are as follows:
-- The 300 MW power plant of Kutch in the state of Gujarat must
have been in commercial operation for three months.
-- The Closing share price being at least GBP 1.00 for consecutive three business days.
Movement in the number of share options outstanding are as
follows:
30 Sep 2019 31 March
2019
--------------------- ------------- -----------
At 1 April 21,774,234 22,024,234
Forfeited/cancelled (21,524,234) (250,000)
Total 250,000 21,774,234
--------------------- ------------- -----------
The fair value of options granted and the assumptions used under
the Black-Scholes option pricing model are as follows:
Granted in Granted in
2015 2011
------------------------------ ----------- -----------
Weighted average fair value
of options granted 0.37 0.28
Exercise price 0.60 0.60
Weighted average share price 0.78 0.66
Volatility (%) 40.95% 31.34%
Annual risk free rate (%) 1.26% 3.00%
Expected option life (years) 5.36 4.96
Long Term Incentive Plan
In April 2019, the Board of Directors approved the introduction
of a Long Term Incentive Plan ("LTIP"). The key terms of the LTIP
are:
The number of performance-related awards is 14 million ordinary
shares (the "LTIP Shares") (representing approximately 3.6 per cent
of the Company's issued share capital). In addition to three
executive directors, additional members of the senior management
team will be included within the LTIP. The grant date is 24 April
2019.
The LTIP Shares were awarded to certain members of the senior
management team as Nominal Cost Shares and will vest in three
tranches subject to continued service with Group until vesting and
meeting the following share price performance targets, plant load
factor ("PLF") and term loan repayments of the Chennai thermal
plant:
-- 20% of the LTIP Shares shall vest upon meeting the target
share price of 25.16p before the first anniversary for the first
tranche, i.e. 24 April 2020, achievement of PLF during the period
April 2019 to March 2020 of at least 70% at the Chennai thermal
plant and repayment of all scheduled term loans;
-- 40% of the LTIP Shares shall vest upon meeting the target
share price of 30.07p before the second anniversary for the second
tranche, i.e. 24 April 2021, achievement of PLF during the period
April 2020 to March 2021 of at least 70% at the Chennai thermal
plant and repayment of all scheduled term loans;
-- 40% of the LTIP Shares shall vest upon meeting the target
share price of 35.00p before the third anniversary for the third
tranche, i.e. 24 April 2022, achievement of PLF of at least 70% at
the Chennai thermal plant during the period April 2021 to March
2022 and repayment of all scheduled term loans.
The nominal cost of performance share, i.e. upon the exercise of
awards, individuals will be required to pay up 0.0147p per share to
exercise their awards.
The share price performance metric will be deemed achieved if
the average share price over a fifteen day period exceeds the
applicable target price. In the event that the share price or other
performance targets do not meet the applicable target, the number
of vesting shares would be reduced pro-rata, for that particular
year. However, no LTIP Shares will vest if actual performance is
less than 80 per cent of any of the performance targets in any
particular year. The terms of the LTIP provide that the Company may
elect to pay a cash award of an equivalent value of the vesting
LTIP Shares.
None of the LTIP Shares, once vested, can be sold until the
third anniversary of the award, unless required to meet personal
taxation obligations in relation to the LTIP award.
For LTIP Shares awards, GBP417,911 (1H FY19: nil) has been
recognised in General and administrative expenses in the six months
period ended 30 September 2019.
Grant date 24-Apr-19 24-Apr-19 24-Apr-19
Vesting date 24-Apr-20 24-Apr-21 24-Apr-22
Equity/ Cash Equity/ Equity/ Cash
Method of settlement Cash
Vesting of shares (%) 20% 40% 40%
Number of LTIP shares granted 2,800,000 5,600,000 5,600,000
Exercise price (pence per share) 0.0147 0.0147 0.0147
Fair value of LTIP shares granted
(pence per share) 0.107493 0.121739 0.104486
Expected volatility (%) 68.00% 64.18% 55.97%
Annual costs of LTIP 835,822 535,247 194,779
18. Post - reporting date events
On 25 November 2019, Company's Annual General Meeting approved
scrip dividend of 0.6 pence per share for the financial year 2019
in respect of 387,910,200 existing ordinary share of 0.0147 pence
each in the capital of the Company.
-ends-
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR LFFEILFLDFIA
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November 28, 2019 02:00 ET (07:00 GMT)
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