TIDMINDI
RNS Number : 2884Z
Indus Gas Limited
14 December 2017
Unaudited Condensed Consolidated Interim Financial
Statements
Indus Gas Limited and its subsidiaries
Six months ended 30 September 2017
Indus Gas Limited (AIM:INDI.L), an oil & gas exploration and
development company with assets in India, is pleased to report its
interim results for the six month period ending 30 September
2017.
Consolidated reported adjusted revenues, operating profit and
profit before tax for the interim period ending 30 September 2017
were US$ 29.39m (US$ 27.39 interim 2016),US$ 25.63m (US$ 22.33m
interim 2016) and US$ 23.63m (US$ 22.61m interim 2016)
respectively.
The Company has continued to make provision for a notional
deferred tax liability of US$ 7.92m (US$ 9.94m interim 2016), in
accordance with IFRS requirements.
The Integrated Field Development Plan for the SSG (Pariwar)
& SSF (B&B) area of 2,000 km2 was approved by the
Directorate General of Hydrocarbons (DGH) and Ministry of Petroleum
and Natural Gas (MoP&NG). The revised Field Development Plan
('FDP') in respect of the SGL area for the enhancement of
production to about 90mmscfd has been approved by the Management
Committee having representative of MoP&NG, DGH &
Contractors/Companies.
The Company continues to realise US$5 per mmBtu in respect of
its existing gas sales contract. Discussions for the second
contract with GAIL and RRVUNL for the additional gas supplies to
the 160 MW turbine at Ramgarh are expected to be finalized in first
quarter of 2018. The gas turbine has been procured by RRVUNL and
the gas price needs to be mutually agreed. Discussions are also
being held for finalising the gas pipeline to evacuate additional
gas supply from the Non-SGL area of the block.
Commenting, Peter Cockburn, Chairman of Indus, said:
"The approval of integrated FDP for SSG and SSF and revised FDP
of SGL is a major milestone achieved by the company in this period.
The revenues are now expected to increase substantially once the
additional gas supplies commence."
For further information please contact:
Indus Gas Limited
Peter Cockburn
Bruce McNaught +44 (0) 20 7877 0022
Arden Partners plc
Steve Douglas +44 (0) 20 7614 5900
Unaudited Condensed Consolidated Statement of Financial
Position
(All amounts in US$, unless otherwise stated)
Notes As at As at
30 September 30 September As at
2017 2016 31 March
2017
(Unaudited) (Unaudited) (Audited)
ASSETS
Non-current assets
Intangible assets: exploration
and evaluation assets 7
Property, plant and equipment 8 684,756,815 599,706,703 639,862,170
Tax assets 2,264,090 1,962,498 2,165,313
Other assets 885 885 885
Total non-current assets 687,021,790 601,670,086 642,028,368
-------------- -------------- -------------
Current assets
Inventories 5,860,552 4,549,391 5,581,503
Trade receivables 11,879,600 2,973,857 2,045,252
Recoverable from related party - 12,003,316 -
Other current assets 74,368 7,204,623 38,784
Cash and cash equivalents 1,674,929 10,316,555 11,401,788
Total current assets 19,489,449 37,042,742 19,067,327
-------------- -------------- -------------
Total assets 706,511,239 638,717,828 661,095,695
============== ============== =============
LIABILITIES AND EQUITY
Shareholders' equity
Share capital 3,619,443 3,619,443 3,619,443
Additional paid-in capital 46,733,689 46,733,689 46,733,689
Currency translation reserve (9,313,781) (9,313,781) (9,313,781)
Merger reserve 19,570,288 19,570,288 19,570,288
Retained earnings 84,357,719 55,923,065 68,639,613
Total shareholders' equity 144,967,358 116,532,704 129,249,252
-------------- -------------- -------------
LIABILITIES
Non-current liabilities
Long term debt , excluding current
portion 9 151,559,044 262,221,896 239,647,360
Provision for decommissioning 1,426,125 1,218,750 1,321,033
Deferred tax liabilities (net) 66,768,667 50,387,937 58,848,114
Payable to related parties,
excluding current portion 11 171,354,704 132,271,106 149,071,994
Deferred revenue 25,563,995 25,563,995 25,563,995
-------------- -------------- -------------
Total non-current liabilities 416,672,535 471,663,684 474,452,496
-------------- -------------- -------------
Current liabilities
Current portion of long term
debt 9 116,535,739 44,923,382 46,614,354
Current portion payable to related
parties 11 23,137,203 299,187 5,570,622
Accrued expenses and other liabilities 121,318 221,785 131,885
Deferred revenue 5,077,086 5,077,086 5,077,086
-------------- -------------- -------------
Total current liabilities 144,871,346 50,521,440 57,393,947
-------------- -------------- -------------
Total liabilities 561,543,881 522,185,124 531,846,443
-------------- -------------- -------------
Total liabilities and equity 706,511,239 638,717,828 661,095,695
============== ============== =============
(The accompanying notes are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statement of Comprehensive Income
(All amounts in US $, unless otherwise stated)
Notes Six month ended
Six months ended 30 September
30 September 2017 2016
Unaudited Unaudited
------------------------------------------- ----- ------------------ -------------------
Revenue 29,391,480 27,393,016
Cost of sales (2,688,457) (4,013,643)
Administrative expenses (1,071,345) (1,048,144)
Profit from operations 25,631,678 22,331,229
------------------ -------------------
Foreign exchange gain/(loss),
net (1,993,054) 277,888
Interest income 45 50
Profit before tax 23,638,669 22,609,167
------------------ -------------------
Income taxes
-Deferred tax charge (7,920,563) (9,942,407)
Profit for the period (attributable
to the shareholder of the
Group) 15,718,106 12,666,760
------------------ -------------------
Total comprehensive income
for the period (attributable
to the shareholders of the
Group) 15,718,106 12,666,760
------------------ -------------------
Earnings per share (periodic) 12
Basic 0.09 0.07
Diluted 0.09 0.07
------------------ -------------------
(The accompanying notes are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statement of Changes in
Equity
(All amounts in US $, unless otherwise stated)
Share capital Additional Currency Merger Retained Total
Number Amount paid-in translation reserve earnings stockholders'
capital reserve equity
Balance as at 1
April
2017 182,973,924 3,619,443 46,733,689 (9,313,781) 19,570,288 68,639,613 129,249,252
------------------ ------------ ---------- ----------- ------------- ----------- ----------- ----------------
Profit for the
period - - - - - 15,718,106 15,718,106
------------------ ------------ ---------- ----------- ------------- ----------- ----------- ----------------
Total
comprehensive
income for the
period - - - - - 15,718,106 15,718,106
------------------ ------------ ---------- ----------- ------------- ----------- ----------- ----------------
Balance as at 30
September 2017 182,973,924 3,619,443 46,733,689 (9,313,781) 19,570,288 84,357,719 144,967,358
------------------ ------------ ---------- ----------- ------------- ----------- ----------- ----------------
Balance as at 1
April
2016 182,973,924 3,619,443 46,733,689 (9,313,781) 19,570,288 43,256,305 103,865,944
------------------ ------------ ---------- ----------- ------------- ----------- ----------- ----------------
Profit for the
period - - - - - 12,666,760 12,666,760
------------------ ------------ ---------- ----------- ------------- ----------- ----------- ----------------
Total
comprehensive
income for the
period - - - - - 12,666,760 12,666,760
------------------ ------------ ---------- ----------- ------------- ----------- ----------- ----------------
Balance as at 30
September 2016 182,973,924 3,619,443 46,733,689 (9,313,781) 19,570,288 55,923,065 116,532,704
------------------ ------------ ---------- ----------- ------------- ----------- ----------- ----------------
(The accompanying notes are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements).
Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in US $, unless otherwise stated)
Six months
Six months ended ended
30 September
30 September 2017 2016
(Unaudited) (Unaudited)
----------------------------------------------- --- --------------------------- -----------------
(A) Cash flow from operating activities
Profit before tax 23,638,669 22,609,167
Adjustments
Unrealised exchange loss/ (gain) 1,993,054 (277,888)
Interest income (45) (50)
Depreciation 2,215,281 3,747,737
Changes in operating assets and liabilities
Inventories (279,049) (435,784)
Trade receivables (9,834,346) 292,881
Trade and other payables 2,899,807 4,405,728
Other current and non-current assets (35,584) (6,965,744)
Provisions for decommissioning 105,092 86,024
Other liabilities 96,745 (159,410)
--------------------------- -----------------
Cash generated from operations 20,799,624 23,302,661
Income taxes paid (98,780) (227,060)
--------------------------- -----------------
Net cash generated from operating
activities 20,700,844 23,075,601
--------------------------- -----------------
(B) Cash flow from investing activities
Purchase of property, plant and equipment
(A) (18,271,141) (50,680,860)
Interest received 35 50
--------------------------- -----------------
Net cash used in investing activities (18,271,106) (50,680,810)
--------------------------- -----------------
(C ) Cash flow from financing activities
Repayment of long term debt from banks (20,828,000) (14,569,586)
Repayment to/ Proceeds from Related
Party 17,209,839 218,269
Payment of interest (8,539,329) (9,114,813)
--------------------------- -----------------
Net cash generated from/(used in)
financing activities (12,157,490) (23,466,160)
--------------------------- -----------------
Net change in cash and cash equivalents (9,727,752) (51,071,374)
--------------------------- -----------------
Cash and cash equivalents at the beginning
of the period 11,401,788 61,081,916
Effect of exchange rate change on
cash and cash equivalents 893 306,014
--------------------------- -----------------
Cash and cash equivalents at the end
of the period 1,674,929 10,316,555
--------------------------- -----------------
Cash and cash equivalents comprises
of
--------------------------- -----------------
balances with banks 1,674,929 10,316,555
--------------------------- -----------------
(A) The purchase of property, plant and equipment above,
includes additions to exploration and evaluation assets amounting
to US$ 13,623,183 (previous period: US$ 18,009,154) transferred to
development cost, as explained in Note 7.
(The accompanying notes are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements)
Notes to Unaudited Condensed Consolidated Interim Financial
Statements
(All amounts in US $, unless otherwise stated)
1. INTRODUCTION
Indus Gas Limited ("Indus Gas" or "the Company") was
incorporated in the Island of Guernsey on 4 March 2008 pursuant to
an Act of the Royal Court of the Island of Guernsey. The Company
was set up to act as the holding company of iServices Investments
Limited. ("iServices") and Newbury Oil Co. Limited ("Newbury").
iServices and Newbury are companies incorporated in Mauritius and
Cyprus, respectively. iServices was incorporated on 18 June 2003
and Newbury was incorporated on 17 February 2005. The Company was
listed on the Alternative Investment Market (AIM) of the London
Stock Exchange on 6 June 2008. Indus Gas through its wholly owned
subsidiaries iServices and Newbury (hereinafter collectively
referred to as "the Group") is engaged in the business of oil and
gas exploration, development and production.
Focus Energy Limited ("Focus"), an entity incorporated in India,
entered into a Production Sharing Contract ("PSC") with the
Government of India ("GOI") and Oil and Natural Gas Corporation
Limited ("ONGC") on 30 June 1998 for petroleum exploration and
development concession in India known as RJ-ON/06 ("the Block").
Focus is the Operator of the Block. On 13 January 2006, iServices
and Newbury entered into an interest sharing agreement with Focus
and obtained a 65 per cent and 25 per cent share respectively in
the Block. Consequent to this, the Group acquired an aggregate of
90 per cent participating interest in the Block and the balance 10
per cent of participating interest is owned by Focus. The
participating interest explained above is subject to any option
exercised by ONGC in respect of individual wells (already exercised
for SGL field as further explained in Note 4).
2. BASIS OF PREPARATION
The unaudited condensed consolidated interim financial
statements are for the six months ended 30 September 2017 and are
presented in United States Dollar (US$), which is the functional
currency of the parent company and other entities in the Group.
They have been prepared in accordance with IAS 34 Interim Financial
Reporting. They do not include all of the information required in
annual financial statements in accordance with International
Financial Reporting Standards as adopted by the European union, and
should be read in conjunction with the consolidated financial
statements and related notes of the Group for the year ended 31
March 2017.
The unaudited condensed consolidated interim financial
statements have been prepared on a going concern basis.
The accounting policies applied in these unaudited condensed
consolidated interim financial statements are consistent with the
policies that were applied for the preparation of the consolidated
financial statements for the year ended 31 March 2017.
These unaudited condensed consolidated interim financial
statements are for the six months ended 30 September 2017 and have
been approved for issue by the Board of Directors.
3. STANDARDS AND INTERPRETATIONS ISSUED BUT NOT EFFECTIVE AND YET TO BE APPLIED BY THE GROUP
Summarised in the paragraphs below are standards,
interpretations or amendments that have been issued prior to the
date of approval of these consolidated financial statements and
endorsed by EU and will be applicable for transactions in the Group
but are not yet effective. These have not been adopted early by the
Group and accordingly, have not been considered in the preparation
of the consolidated financial statements of the Group.
Management anticipates that all of these pronouncements will be
adopted by the Group in the first accounting period beginning after
the effective date of each of the pronouncements. Information on
the new standards, interpretations and amendments that are expected
to be relevant to the Group's consolidated financial statements is
provided below.
- IFRS 9 Financial Instruments Classification and Measurement
In July 2014, the International Accounting Standards Board
issued the final version of IFRS 9, Financial Instruments. The
standard reduces the complexity of the current rules on financial
instruments as mandated in IAS 39. IFRS 9 has fewer classification
and measurement categories as compared to IAS 39 and has eliminated
the categories of held to maturity, available for sale and loans
and receivables. Further it eliminates the rule-based requirement
of segregating embedded derivatives and tainting rules pertaining
to held to maturity investments. For an investment in an equity
instrument which is not held for trading, IFRS 9 permits an
irrevocable election, on initial recognition, on an individual
share-by-share basis, to present all fair value changes from the
investment in other comprehensive income. No amount recognized in
other comprehensive income would ever be reclassified to profit or
loss. It requires the entity, which chooses to measure a liability
at fair value, to present the portion of the fair value change
attributable to the entity's own credit risk in other comprehensive
income.
IFRS 9 replaces the 'incurred loss model' in IAS 39 with an
'expected credit loss' model. The measurement uses a dual
measurement approach, under which the loss allowance is measured as
either 12 month expected credit losses or lifetime expected credit
losses. The standard also introduces new presentation and
disclosure requirements.
This standard is effective for reporting periods beginning on or
after 1 January 2018 with early adoption permitted. The management
is currently evaluating the impact that this new standard will have
on its consolidated financial statements.
- IFRS 15 Revenue from Contracts with Customers
The International Accounting Standards Board (IASB) has
published a new standard, IFRS 15 Revenue from Contracts with
customers. This standard replaces IAS 11 Construction Contracts,
IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15
Agreements for the Construction of Real Estate, IFRIC 18 Transfers
of Assets from Customers, and SIC-31 Revenue- Barter Transactions
involving advertising services. It sets out the requirements for
recognising revenue that apply to contracts with customers, except
for those covered by standards on leases, insurance contracts and
financial instruments. The new standard establishes a control-based
revenue recognition model and provides additional guidance in many
areas not covered in detail under existing IFRSs, including how to
account for arrangements with multiple performance obligations,
variable pricing, customer refund rights, supplier repurchase
options, and other common complexities.
This standard is effective for reporting periods beginning on or
after 1 January 2018 with early adoption permitted. It applies to
new contracts created on or after the effective date and to the
existing contracts that are not yet complete as of the effective
date.
The management is currently evaluating the impact that this new
standard will have on its consolidated financial statements.
- IFRS 16 Leases
On 13 January 2016, the IASB issued the final version of IFRS
16, Leases. IFRS 16 will replace the existing leases Standard, IAS
17 Leases, and related interpretations. The standard sets out the
principles for the recognition, measurement, presentation and
disclosure of leases. IFRS 16 introduces a single lessee accounting
model and requires a lessee to recognize assets and liabilities for
all leases with a term of more than 12 months, unless the
underlying asset is of low value. The Standard also contains
enhanced disclosure requirements for lessees. The effective date
for adoption of IFRS 16 is annual periods beginning on or after 1
January 2019 (but not yet endorsed in EU), though early adoption is
permitted for companies applying IFRS 15 Revenue from Contracts
with Customers.
Management is currently evaluating the impact that this new
standard will have on its consolidated financial statements.
4. JOINTLY CONTROLLED ASSETS
As explained above, the Group through its subsidiaries has an
interest sharing arrangement with Focus in the block which under
IFRS 11 Joint Arrangements, is classified as a 'Joint operation'.
All rights and obligations in respect of exploration, development
and production of oil and gas resources under the 'Interest sharing
agreement' are shared between Focus, iServices and Newbury in the
ratio of 10 per cent, 65 per cent and 25 per cent respectively.
Under the PSC, the GOI, through ONGC had an option to acquire a
30 per cent participating interest in any discovered field, upon
such successful discovery of oil or gas reserves, which has been
declared as commercially feasible to develop.
Subsequent to the declaration of commercial discovery in SGL
field on 21 January 2008, ONGC had exercised the option to acquire
a 30 per cent participating interest in the discovered fields on 6
June 2008. The exercise of this option would reduce the interest of
the existing partners proportionately.
On exercise of this option, ONGC is liable to pay its share of
30 per cent of the SGL field development costs and production costs
incurred after 21 January 2008 and are entitled to a 30 per cent
share in the production of gas subject to recovery of contract
costs as explained below.
The allocation of the production from the field to each
participant in any year is determined on the basis of the
respective proportion of each participant's cumulative unrecovered
contract costs as at the end of the previous year or where there
are no unrecovered contract cost at the end of previous year on the
basis of participating interest of each such participant in the
field. For recovery of past contract cost, production from the
field is first allocated towards exploration and evaluation cost
and thereafter towards development cost.
On the basis of above, gas production for the period ended 30
September 2017 is shared between Focus, iServices and Newbury in
the ratio of 10 percent, 65 percent and 25 percent
respectively.
The aggregate amounts relating to jointly controlled assets,
liabilities, expenses and commitments related thereto that have
been included in the consolidated financial statements are as
follows:
Particular Period ended Period ended Year ended
30 September 2017 30 September 31 March 2017
2016
(Unaudited) (Unaudited) (Audited)
------------------------------------ ------------------- ------------- ---------------
Non-current assets 684,756,815 599,706,703 639,862,170
Current assets 5,860,552 16,552,707 5,581,503
Non-current liabilities 1,426,125 1,218,750 1,321,033
Current liabilities 22,699,519 299,187 5,250,197
Expenses (net of finance
income) 2,899,807 4,405,728 11,456,179
Commitments - - -
----------------------------------- -------------------- ------------- ---------------
The GOI, through ONGC, has option to acquire similar
participating interest in any such future successful discovery of
oil or gas reserves in the Block that has been declared as
commercially feasible to develop.
5. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
The preparation of interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates.
In preparing these unaudited condensed interim consolidated
financial statements, the significant judgments made by management
in applying the Group's accounting policies and the key sources of
estimation uncertainty were consistent with those that applied to
the consolidated financial statements as at and for the year ended
31 March 2017.
6. SEGMENT REPORTING
Operating segments are identified on the basis of internal
reports about components of the Group that are regularly reviewed
by the chief operating decision maker in order to allocate
resources to the segments and to assess their performance. The
Company considers that it operates in a single operating segment
being the extraction and production of gas.
7. INTANGIBLE ASSETS: EXPLORATION AND EVALUATION ASSETS
Intangible assets comprise of exploration and evaluation assets.
Movement in intangible assets was as under:
In tangible assets:
exploration and
evaluation assets
------------------------------------------- -------------------------------------------
Balance at 01 April 2016 -
Additions (A) 18,009,154
Transfer to development assets (B) (18,009,154)
Balance at 30 September 2016 -
-------------------------------------------
Balance at 01 April 2016 -
Additions (A) 28,719,544
Transfer to development assets (B) (28,719,544)
-------------------------------------------
Balance at 31 March 2017 -
-------------------------------------------
Balance at 01 April 2017 -
Additions (A) 13,623,183
Transfer to development assets (B) (13,623,183)
Balance as at 30 September 2017 -
(A) The above includes borrowing costs of US$ 211,423 for the
period ended 30 September 2017 (30 September 2016: US$ 133,303 and
31 March 2017: US$ 859,043). The weighted average capitalisation
rate on funds borrowed generally is 6.31 per cent per annum (30
September 2016: 5.89 per cent per annum and 31 March 2017: 6.17 per
cent per annum).
(B) On 19 November 2013, Focus Energy Limited submitted an
integrated declaration of commerciality (DOC) to the Directorate
General of Hydrocarbons, ONGC, the Government of India and the
Ministry of Petroleum and Natural Gas. Upon submission of DOC,
exploration and evaluation cost incurred on SSF and SSG field was
transferred to development cost. Focus continues to carry out
further appraisal activities in the Block, and exploration and
evaluation cost incurred subsequent to 19 November 2013, to the
extent considered recoverable as per DOC submitted by Focus, is
immediately transferred on incurrence to development assets.
Subsequently on 16 August 2017, the management committee of the
block (RJ/ON-06) approved the revised field development plan for
SGL field , which allows for a higher gas production. Also on 23
June 2017, the management committee of the block (Rjon-06) approved
the integrated field development plan for SSG-1 and SSF-2 field
area .
8. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise of the following:
Cost Land Extended Development/ Bunk Vehicles Other Capital Total
well test Production houses assets work-in-progress
equipment assets
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Balance as
at 1 April
2017 167,248 4,120,043 668,879,209 5,926,920 4,734,619 1,576,976 1,317,908 686,722,923
Additions - 198,669 47,332,757 7,370 29,689 10,216 43,795 47,622,496
-------------- ----------
Balance as
at 30
September
2017 167,248 4,318,712 716,211,966 5,934,290 4,764,308 1,587,192 1,361,703 734,345,419
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Accumulated depreciation
Balance as
at 1 April
2017 - 1,870,614 34,233,251 5,388,608 3,867,798 1,500,482 - 46,860,753
Depreciation
for the
period - 150,381 2,215,281 193,711 99,563 68,915 - 2,727,851
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Balance as
at 30
September
2017 - 2,020,995 36,448,532 5,582,319 3,967,361 1,569,397 - 49,588,604
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Carrying
value
As at 30
September
2017 167,248 2,297,717 679,763,434 351,9710 796,947 17,795 1,361,703 684,756,815
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Land Extended Development/ Bunk Vehicles Other Capital Total
well test Production houses assets work-in-progress
Cost equipment assets
Balance as
at 1 April
2016 167,248 3,737,654 580,789,054 5,917,523 4,576,803 1,506,289 1,227,969 597,922,540
Additions - 382,389 88,090,155 9,397 157,816 70,687 89,939 88,800,383
Disposals - - - - - - - -
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Balance as
at 31 March
2017 167,248 4,120,043 668,879,209 5,926,920 4,734,619 1,576,976 1,317,908 686,722,923
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Accumulated
Depreciation
Balance as
at 1 April
2016 - 1,629,759 23,880,916 5,015,047 3,502,013 1,452,850 35,480,585
Depreciation
for the year - 240,855 10,352,335 373,561 365,785 47,632 11,380,168
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Balance as
at 31 March
2017 - 1,870,614 34,233,251 5,388,608 3,867,798 1,500,482 - 46,860,753
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Carrying
value as
at 31 March
2017 167,248 2,249,429 634,645,958 538,312 866,821 76,494 1,317,908 639,862,170
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Cost Land Extended Development/ Bunk Vehicles Other Capital Total
well test Production Houses assets work-in-progress
equipment assets
Balance as
at 1 April
2016 167,248 3,737,654 580,789,054 5,917,523 4,576,803 1,506,289 1,227,969 597,922,540
Additions - 133 41,593,793 - - 7,541 2,092 41,603,559
--------------
Balance as
at 30
September
2016 167,248 3,737,787 622,382,847 5,917,523 4,576,803 1,513,830 1,230,061 639,526,099
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Accumulated depreciation
Balance as at 1
April 2016 1,629,759 23,880,916 5,015,047 3,502,013 1,452,850 - 35,480,585
Depreciation
for the
period - 126,783 3,747,737 201,751 226,856 35,684 - 4,338,811
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Balance as
at 30
September
2016 - 1,756,542 27,628,653 5,216,798 3,728,869 1,488,534 - 39,819,396
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Carrying
value
As at 30
September
2016 167,248 1,981,245 594,754,194 700,7250 847,934 25,296 1,230,061 599,706,703
-------------- ---------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
Borrowing costs capitalised for the period ended 30 September
2017 amounted to US$ 14,289,270 (30 September 2016: US$13,657,072
and 31 March 2017: US$ 27,753,096).
9. LONG TERM DEBT
From banks
Maturity 30 September 30 September 31 March
2017 2016 2017
(Unaudited) (Unaudited) (Audited)
--------------------- ----------- ------------- ------------- ------------
Non-current portion
of long term debt 2018/2021 151,559,044 189,051,995 168,252,860
Current portion of
long term debt 40,405,397 42,301,806 44,069,933
Total 191,964,441 231,353,801 212,322,794
---------------------------------- ------------- ------------- ------------
Current interest rates are variable and weighted average
interest for the year was 6.31per cent per annum (30 September
2016: 5.89 per cent per annum and 31 March 2017: 6.17 per cent per
annum). The fair value of the above variable rate borrowings is
considered to approximate their carrying amounts.
The term loans are secured by following: -
-- First charge on all project assets of the Group both present
and future, to the extent of SGL Field. Development. and to the
extent of capex incurred out of this facility in the rest of
RJ-ON/6 field.
-- First charge on the current assets (inclusive of condensate
receivable) of the Group to the extent of SGL field.
-- First Charge on the entire current assets of the SGL Field
and to the extent of capex incurred out of this facility in the
rest of RJON/6 field.
From bonds
Maturity 30-Sep-17 30-Sep-16 31-Mar-17
(Unaudited) (Unaudited) (Audited )
--------------------------------------- ---------- ------------ ------------ -----------
Non-current portion of long term debt 2018 - 73,169,901 71,394,500
Current portion of long term debt 76,130,342 2,621,576 2,544,421
Total 76,130,342 75,791,477 73,938,921
--------------------------------------------------- ------------ ------------ -----------
During the year ended 31 March 2016, the Group has issued SGD
100 million (US$ 74.18 million) notes under the US$ 300 million MTN
programme carries interest rate of 8 per cent per annum. These
notes are unsecured notes and are fully repayable at the end of 3
years i.e. April 2018. Interest on these notes is paid
semi-annually.
10. RELATED PARTY TRANSACTIONS
The related parties for each of the entities in the Group have
been summarised in the table below:
Nature of the relationship Related Party's Name
------------------------------------ -----------------------------------
I. Holding Company Gynia Holdings Ltd.
------------------------------------ -----------------------------------
II. Ultimate Holding Company Multi Asset Holdings Ltd. (Holding
Company of Gynia Holdings Ltd.)
------------------------------------ -----------------------------------
II III. Enterprise over which Focus Energy Limited
Key Management Personnel (KMP)
exercise control (with whom
there are transactions)
------------------------------------ -----------------------------------
Disclosure of transactions between the Group and related parties
and the outstanding balances as of 30 September 2017, 30 September
2016 and 31 March 2017 are as follows:
Transactions during the period
Particulars Period ended Period ended
30-Sep-17 30-Sep-16
------------------------------------------------------------- ------------- -------------
Transactions with the Holding Company
Amount Received 17,209,839 -
Interest paid 5,072,871 4,163,497
Transactions with KMP
Short term employee benefits 150,013 94,587
Entity over which KMP exercise control
Share of cost incurred by the Focus in respect of the Block 33,727,257 28,451,839
Remittances 16,870,000 48,013,950
-------------------------------------------------------------- ------------- -------------
11. RELATED PARTY PAYABLES
Amount outstanding towards related parties
Particulars As at As at As at
30 September 2017 30 September 2016 31 March 2017
------------------------------------------- ------------------- ------------------- ---------------
Entity over which KMP exercise control
Payable/(Advance) to Focus Energy Limited 22,699,519 (12,003,316) 5,250,197
Payable with the Holding Company
Payables to Gynia Holding Limited* 171,354,704 132,271,106 149,071,994
Payable to KMP
Employee obligation 437,684 299,187 320,425
*including interest
Directors' remuneration
Directors' remuneration is included under administrative
expenses, evaluation and exploration assets or development assets
in the unaudited consolidated financial statements allocated on a
systematic and rational manner.
Advance for expenditure/Liability payable to Focus
Liability payable to Focus represents amounts due to them in
respect of the Group's share of contract costs, for its
participating interest in Block RJ-ON/6 pursuant to the terms of
Agreement for Assignment dated 13 January 2006 and its subsequent
amendments from time to time.
The management estimates the current borrowings to be repaid on
demand within twelve months from the statement of financial
position date and these have been classified as current
borrowings.
Liability payable to Gynia
* Borrowings from Gynia Holdings Ltd. carries interest rate of
6.5 per cent per annum compounded annually. During the current
year, the entire outstanding balance (including interest) was made
subordinate to the loans taken from the banks and therefore, is
payable along with related interest subsequent to repayment of bank
loan in year 2024.
Interest capitalised on loans above have been disclosed in notes
7 and 8.
12. EARNINGS PER SHARE
The calculation of the earnings per share is based on the
profits attributable to ordinary shareholders divided by the
weighted average number of shares issued during the period.
Calculation of basic and diluted earnings per share is as
follows:
Period ended Period ended
30 September 2017 30 September
2016
--------------------------- ------------------- --------------
Profit attributable
to shareholders of Indus
Gas Limited, for basic
and dilutive 15,718,106 12,666,760
Weighted average number
of shares (used for
basic profit per share) 182,973,924 182,973,924
Diluted weighted average
number of shares (used
for diluted profit per
share 182,973,924 182,973,924
Basic earnings per
share (US$) 0.09* 0.07*
Diluted earnings per
share (US$) 0.09* 0.07*
---------------------------- ------------------- --------------
*Rounded off to the nearest two decimal places.
13. COMMITMENTS AND CONTINGENCIES
At 30 September 2017, the Group had capital commitments of US$
Nil (30 September 2016: US$ Nil; 31 March 2017: US$ Nil) in
relation to property, plant & equipment - development/producing
assets, in the Block.
The Group has no contingencies as at 30 September 2017 (30
September 2016: Nil; 31 March 2017: Nil).
14. FINANCIAL RISK MANAGEMENT
The Group's financial risk management objectives and policies
are consistent with those disclosed in the consolidated financial
statements as at and for the year ended 31 March 2017.
15. INCOME TAX CREDIT
Indus Gas profits are taxable as per the tax laws applicable in
Guernsey where zero per cent tax rate has been prescribed for
corporates. Accordingly, there is no tax liability for the Group in
Guernsey. iServices and Newbury being participants in the PSC are
covered under the Indian Income tax laws as well as tax laws for
their respective countries. However, considering the existence of
double tax avoidance arrangement between Cyprus and India, and
Mauritius and India, profits in Newbury and iServices are not
likely to attract any additional tax in their local jurisdiction.
Under Indian tax laws, Newbury and iServices are allowed to claim
the entire expenditure in respect of the Oil Block incurred until
the start of commercial production (whether included in the
exploration and evaluation assets or development assets) as
deductible expense in the first year of commercial production or
over a period of 10 years. The Company has opted to claim the
expenditure in the first year of commercial production. As the
Group has commenced commercial production in 2011 and has generated
profits in Newbury and iServices, the management believes there is
reasonable certainty of utilisation of such losses in the future
years and thus a deferred tax asset has been created in respect of
these.
16. BASIS OF GOING CONCERN ASSUMPTION
As at 30 September 2017 The Group has current liabilities
amounting to US$ 144,871,346 the majority of which is towards SGD
100 million bond repayment due in April 2018, current portion of
borrowings from banks and related parties, primarily to Focus. As
at 31 March 2017, the amounts due for repayment (including interest
payable) within the next 12 months for long term borrowings are US$
116,535,739 which the Group expects to meet from its internal
generation of cash from operations and by raising additional funds
through debt/bond.
17. FINANCIAL INSTRUMENTS
A summary of the Group's financial assets and liabilities by
category is mentioned in the table below.
The carrying amounts of the Group's financial assets and
liabilities as recognised at the end of the reporting periods under
review may also be categorised as follows:
30 September 2017 30 September 2016 31 March 2017
------------------------------------------------------ ------------------ ------------------ --------------
Non-current assets
-Security Deposit 885 885 885
Current assets
-Trade receivables 11,879,600 2,973,857 2,045,252
-Cash and cash equivalents 1,674,929 10,316,555 11,401,788
------------------------------------------------------ ------------------ ------------------ --------------
Total financial assets under loans and receivables 13,555,414 13,291,297 13,447,925
------------------------------------------------------ ------------------ ------------------ --------------
Financial liabilities measured at amortised cost:
Non-current liabilities
- Long term debt 151,559,044 262,221,896 239,647,360
- Payable to related parties 171,354,704 132,271,106 149,071,994
Current liabilities
* Current portion of Long term debt 116,535,739 44,923,382 46,614,354
- Payable to related parties 23,137,203 299,187 5,570,622
* Accrued expenses and other liabilities 121,318 221,785 131,885
------------------------------------------------------ ------------------ ------------------ --------------
Total financial liability measured at amortised cost 462,708,008 439,937,356 441,036,215
------------------------------------------------------ ------------------ ------------------ --------------
The fair value of the financial assets and liabilities described
above closely approximates their carrying value on the statement of
financial position dates.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKNDDOBDDOBD
(END) Dow Jones Newswires
December 14, 2017 02:00 ET (07:00 GMT)
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