TIDMINDI
RNS Number : 6857L
Indus Gas Limited
28 December 2018
Unaudited Condensed Consolidated Interim
Financial
Statements
Indus Gas Limited and its subsidiaries
Six months ended 30 September 2018
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
2018.
Consolidated reported adjusted revenues, operating profit and
profit before tax for the interim period ending 30
September 2018 were US$ 27.78m (US$ 29.39 interim 2017),US$
23.42m (US$ 25.63m interim 2017) and US$ 23.57m (US$ 23.63m interim
2017) respectively.
The Company has continued to make provision for a notional
deferred tax liability of US$ 5.85m (US$ 7.92m interim 2017), in
accordance with IFRS requirements.
As recently announced in our full year results, the Petroleum
& Natural Gas Regulatory Board (PNGRB) have invited bids for
the laying of a Gas Pipeline of 580 Kms for the evacuation of Gas
from RJ-ON/6 Block. This new pipeline will connect the gas
processing facility located at Langtala to Bhilwara. This will then
connect to the National Grid through the Gas Authority of India
Limited's (GAIL) Hazira-Vijaypur-Jagdishpur pipeline. The tender
process continues to progress and a further update will be provided
in due course.
Following the approval by the Director General Of Hydrocarbons
(DGH) and the Ministry of Petroleum and Natural Gas (MoP&NG) of
the Integrated Field Development Plan for the SSG and SSF area,
detailed on-site planning continues for the delivery of the
required production ramp once the pipeline is constructed. Planning
is also at an advanced stage in respect of the SGL area and the
revised Field Development Plan (FDP) for the enhancement of
production from the current 33.5 mmscfd to an estimated 90
mmscfd.
Commenting, Peter Cockburn, Chairman of Indus, said:
Indus has reached a very exciting point in its development as a
result of management's consistent and successful execution of the
Company's long-term strategy of achieving both growth in reserves
and commercial production. The Indian economy continues to suffer
from a shortage of domestically sourced energy production and Indus
remains well placed to contribute to addressing this deficit by
working in partnership with the relevant authorities in India.
For further information please contact:
Indus Gas Limited
Peter Cockburn
Jonathan Keeling +44 (0) 20 7877 0022
Arden Partners plc
Steve Douglas
Ciaran Walsh
Dan Gee-Summons +44 (0) 20 7614 5900
Unaudited Condensed Consolidated Statement of Financial
Position
(All amounts in US$, unless otherwise stated)
Notes As at As at As at
30 September 30 September 31 March 2018
2018 2017
(Unaudited) (Unaudited) (Audited)
ASSETS
Non-current assets
Intangible assets: exploration
and evaluation assets 7 - - -
Property, plant and equipment 8 796,677,681 684,756,815 742,705,287
Tax assets 2,608,056 2,264,090 2,424,527
Other assets 774 885 709
Total non-current assets 799,286,511 687,021,790 745,130,523
-------------------------- ---------------------- ---------------
Current assets
Inventories 8,607,174 5,860,552 8,341,084
Trade receivables 15,642,575 11,879,600 18,185,854
Recoverable from related
party 62,071,616 - 13,914,912
Other current assets 54,056 74,368 34,296
Cash and cash equivalents 864,273 1,674,929 13,342,498
Total current assets 87,239,694 19,489,449 53,818,644
-------------------------- ---------------------- ---------------
Total assets 886,526,205 706,511,239 798,949,167
========================== ====================== ===============
LIABILITIES AND EQUITY
Shareholders' equity
Share capital 36,19,443 36,19,443 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 119,981,026 84,357,719 102,268,993
Total shareholders' equity 180,590,665 144,967,358 162,878,632
-------------------------- ---------------------- ---------------
LIABILITIES
Non-current liabilities
Long term debt , excluding
current portion 9 268,180,256 151,559,044 287,451,403
Provision for decommissioning 1,520,200 1,426,125 1,581,096
Deferred tax liabilities
(net) 78,885,614 66,768,667 73,031,531
Payable to related parties,
excluding current portion 11 287,040,489 171,354,704 204,640,627
Deferred revenue 25,563,995 25,563,995 25,563,995
Total non-current liabilities 661,190,554 416,672,535 592,268,652
------------ ------------ ------------
Current liabilities
Current portion of long term
debt 9 37,640,707 116,535,739 37,299,630
Current portion payable to
related parties 11 352,985 23,137,203 355,496
Accrued expenses and other
liabilities 1,674,208 121,318 1,069,671
Deferred revenue 5,077,086 5,077,086 5,077,086
Total current liabilities 44,744,986 144,871,346 43,801,883
------------ ------------ ------------
Total liabilities 705,935,540 561,543,881 636,070,535
------------ ------------ ------------
Total liabilities and equity 886,526,205 706,511,239 798,949,167
============ ============ ============
(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 2018 2017
Unaudited Unaudited
------------------------------ ------ ------------------ -------------------
Revenue 27,775,085 29,391,480
Cost of sales (3,218,897) (2,688,457)
Administrative expenses (1,132,978) (1,071,345)
Profit from operations 23,423,210 25,631,678
------------------ -------------------
Foreign exchange gain/(loss),
net 142,884 (1,993,054)
Interest income 22 45
Profit before tax 23,566,116 23,638,669
------------------ -------------------
Income taxes
-Deferred tax charge (5,854,083) (7,920,563)
------------------ -------------------
Profit for the period (attributable
17,712,033 15,718,106
to the shareholder of the
Group)
----------- ------------
Total comprehensive income
for the period (attributable
to the shareholders of
the Group) 17,712,033 15,718,106
----------- ------------
Earnings per share 12
Basic 0.10 0.09
Diluted 0.10 0.09
(The ((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 Share (Accumulated Total
Number Amount paid-in translation reserve option losses)/ stockholders'
capital reserve reserve Retained equity
earnings
Balance as at
1 April
2018 182,973,924 3,619,443 46,733,689 (9,313,781) 19,570,288 - 102,268,993 162,878,632
--------------- ------------ ---------- ----------- ------------ ----------- -------- ------------- --------------
Profit for the
period - - - - - - 17,712,033 17,712,033
--------------- ------------ ---------- ----------- ------------ ----------- -------- ------------- --------------
Total
comprehensive
income for
the period - - - - - - 17,712,033 17,712,033
--------------- ------------ ---------- ----------- ------------ ----------- -------- ------------- --------------
Balance as at
30
September
2018 182,973,924 3,619,443 46,733,689 (9,313,781) 19,570,288 - 119,981,026 180,590,665
--------------- ------------ ---------- ----------- ------------ ----------- -------- ------------- --------------
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
--------------------- ------------ ---------- ----------- ------------ ----------- ----------- ------------
(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
2018 2017
(Unaudited) (Unaudited)
---------------------------- ------------------------- -------------- ----------- --------------------
(A) Cash flow from
operating activities
Profit before tax 23,566,116 23,638,669
Adjustments
Unrealised exchange loss/
(gain) (142,884) 1,993,054
Interest income (22) (45)
Depreciation 2,520,327 2,215,281
Changes in operating assets
and
liabilities
Inventories (266,090) (279,049)
Trade receivables 2,543,379 (9,834,346)
Trade and other payables 3,171,638 2,899,807
Other current and
non-current
assets (19,825) (35,584)
Provisions for
decommissioning (60,896) 105,092
Other liabilities 602,026 96,745
-------------- ----------- --------------------
Cash generated from
operations 31,913,769 20,799,624
Income taxes paid (183,529) (98,780)
-------------- ----------- --------------------
Net cash generated from
operating
activities 31,730,240 20,700,844
-------------- ----------- --------------------
(B) Cash flow from
investing activities
Purchase of property, plant
and
equipment (A) (92,694,415) (18,271,141)
Interest received 22 35
Net cash used in investing
activities (92,694,393) (18,271,106)
-------------- ----------- --------------------
(C) Cash flow from
financing
activities
Repayment of long term debt from
banks (18,642,570) (20,828,000)
Proceed from Related Party 78,449,952 17,209,839
Payment of interest (11,464,739) (8,539,329)
Net cash generated from/(used in)
financing
activities 48,342,643 (12,157,490)
----------------------------------------- --------------------
Net change in cash and cash
equivalents (12,621,510) (9,727,752)
Cash and cash equivalents at the
beginning
of the period 13,342,498 11,401,788
Effect of exchange rate change on
cash
and cash equivalents 143,285 893
----------------------------------------- --------------------
Cash and cash equivalents at the
end of
the period 864,273 1,674,929
----------------------------------------- --------------------
(A) The purchase of property, plant and equipment above,
includes additions to exploration and evaluation assets amounting
to Nil (previous period: US$ 13,623,183) 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 $, unless otherwise stated)
1. INTRODUCTION
Indus Gas Limited ("Indus Gas" or "the Company") was
incorporated in the Island of Guernsey on 4 March 2008 pursuant to
an Act of the Royal Court of the Island of Guernsey. The Company
was set up to act as the holding company of iServices Investments
Limited. ("iServices") and Newbury Oil Co. Limited ("Newbury").
iServices and Newbury are companies incorporated in Mauritius and
Cyprus, respectively. iServices was incorporated on 18 June 2003
and Newbury was incorporated on 17 February 2005. The Company was
listed on the Alternative Investment Market (AIM) of the London
Stock Exchange on 6 June 2008. Indus Gas through its wholly owned
subsidiaries iServices and Newbury (hereinafter collectively
referred to as "the Group") is engaged in the business of oil and
gas exploration, development and production.
Focus Energy Limited ("Focus"), an entity incorporated in India,
entered into a Production Sharing Contract ("PSC") with the
Government of India ("GOI") and Oil and Natural Gas Corporation
Limited ("ONGC") on 30 June 1998 for petroleum exploration and
development concession in India known as RJ-ON/06 ("the Block").
Focus is the Operator of the Block. On 13 January 2006, iServices
and Newbury entered into an interest sharing agreement with Focus
and obtained a 65 per cent and 25 per cent share respectively in
the Block. Consequent to this, the Group acquired an aggregate of
90 per cent participating interest in the Block and the balance 10
per cent of participating interest is owned by Focus. The
participating interest explained above is subject to any option
exercised by ONGC in respect of individual wells (already exercised
for SGL field as further explained in Note 4).
2. BASIS OF PREPARATION
The unaudited condensed consolidated interim financial
statements are for the six months ended 30 September 2018 and are
presented in United States Dollar (US$), 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 2018.
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 2018.
These unaudited condensed consolidated interim financial
statements are for the six months ended 30 September 2018 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 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.
- IFRIC 22 Foreign Currency Transactions and Advance
Consideration
The amendment clarifies that, in determining the spot exchange
rate to use on initial recognition of the related asset, expense or
income (or part of it) on the derecognition of a non-monetary asset
or nonmonetary liability relating to advance consideration, the
date of the transaction is the date on which an entity initially
recognises the non-monetary asset or non-monetary liability arising
from the advance consideration. If there are multiple payments or
receipts in advance, then the entity must determine the transaction
date for each payment or receipt of advance consideration. Entities
may apply the amendments on a fully retrospective basis.
Alternatively, an entity may apply the Interpretation prospectively
to all assets, expenses and income in its scope that are initially
recognized on or after:
(i) The beginning of the reporting period in which the entity
first applies the interpretation or
(ii) The beginning of a prior reporting period presented as
comparative information in the financial
statements of the reporting period in which the entity first
applies the interpretation.
Management is currently evaluating the impact that this new
standard will have on its consolidated financial statements.
4. JOINTLY CONTROLLED ASSETS
The Group participates in an unincorporated joint arrangement
with Focus wherein the Group's interest in this arrangement was
classified as jointly controlled assets. Following implementation
of IFRS 11: Joint Arrangements, the Group's interest in this
arrangement is now classified as 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 2018 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 2018 30 September 31 March 2018
2017
(Unaudited) (Unaudited) (Audited)
-------------------------- ----------------------------- ----------------------- -----------------
Non-current assets 796,677,681 684,756,815 742,705,287
Current assets 70,678,790 5,860,552 22,255,996
Non-current liabilities 1,520,200 1,426,125 1,581,096
Current liabilities - 22,699,519 -
Expenses (net of finance
income) 3,171,638 2,899,807 6,761,016
Commitments - - -
Also subsequent to the declaration of commerciality for SSF and
SSG discovery on 24 November 2014, ONGC did not exercise the option
to acquire 30 percent in respect of SSG and SSF field. The
participating interest in SSG and SSF field between Focus, I
services and Newbury will remain in the ratio of 10 percent, 65
percent and 25 percent respectively.
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 2018.
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 production and sale of gas.
7. INTANGIBLE ASSETS: EXPLORATION AND EVALUATION ASSETS
Intangible assets comprise of exploration and evaluation assets.
Movement in intangible assets was as under:
Intangible assets:
exploration and
evaluation assets
------------------------------------ -----------------------------------------
Balance at 01 April 2017 -
Additions (A) 13,623,183
Transfer to development assets (B) (13,623,183)
Balance as at 30 September 2017
-
Balance at 01 April 2017 -
Additions (A) 5,927,548
Transfer to development assets (B) (5,927,548)
Balance as at 31 March 2018 -
Balance as at 01 April 2018 -
Additions (A) -
Transfer to development assets (B) -
Balance as at 30 September 2018 -
(A) The above includes borrowing costs of US$ Nilfor the period
ended 30 September 2018 (30 September 2017: US$ 211,423 and 31
March 2018: US$ 898,344). The weighted average capitalisation rate
on funds borrowed generally is 6.86 per cent per annum (30
September 2017: 6.31 per cent per annum and 31 March 2018: 6.50 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.
Further, field development plan has been approved by Directorate
General of Hydrocarbons ('DGH') as on 23 June 2017. Accordingly,
the cost incurred on the aforesaid fields from 23 June 2017 are
capitalised directly to development cost.
8. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise of the following:
Cost Land Extended Development/Production Bunk Vehicles Other Capital Total
well assets houses assets work-in-progress
test
equipment
--------------------- -------- ---------- ----------------------- ---------- ---------- ---------- ----------------- ------------
Balance as
at 1 April
2018 167,248 4,324,033 777,563,979 5,926,920 4,767,563 1,620,590 1,371,441 795,741,774
Additions - 99,143, 56,512,061 - - 50,952 88,709 56,750,865
Disposals/Transfers - - - - - - - -
--------------------- --------
Balance as
at 30
September
2018 167,248 4,423,176 834,076,040 5,926,920 4,764,563 1,671542 1,460,150 852,492,639
--------------------- -------- ---------- ----------------------- ---------- ---------- ---------- ----------------- ------------
Accumulated depreciation
Balance as
at 1 April
2018 - 2,105,807 39,645,716 5,652,284 4,059,330 1,573,350 - 53,036,487
Depreciation
for the period - 86,608 2,520,327 64,916 91,942 14,678 - 2,778,471
--------------------- -------- ---------- ----------------------- ---------- ---------- ---------- ----------------- ------------
Balance as
at 30 September
2018 - 2,192,415 42,166,043 5,717,200 4,151,272 1,588,028 - 55,814,958
--------------------- -------- ---------- ----------------------- ---------- ---------- ---------- ----------------- ------------
Carrying value
As at 30 September
2018 167,248 2,230,761 791,909,997 209,720 616,291 83,514 1,460,150 796,677,681
--------------------- -------- ---------- ----------------------- ---------- ---------- ---------- ----------------- ------------
(This space is intentionally left blank)
Land Extended Development/Production Bunk Vehicles Other Capital Total
well assets houses assets work-in-progress
test
Cost equipment
Balance as
at 1 April
2017 167,248 4,120,043 688,879,299 5,926,920 4,734,619 15,76,976 1,317,908 686,722,923
Additions 203,990 108,684,770 32,944 43,614 53,533 109,018,851
Disposals
-------------- -------------- ---------- ----------------------- ---------- ---------- ---------- ----------------- ------------
Balance as
at 31 March
2018 167,248 4,324,033 777,563,979 5,926,920 4,767,563 1,620,590 1,371,441 795,741,774
-------------- -------------- ---------- ----------------------- ---------- ---------- ---------- ----------------- ------------
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 year - 235,193 5,412,465 263,676 191,532 72,868 - 6,175,734
Balance as
at 31 March
2018 2,105,807 39,645,716 5,652,284 4,059,330 1,573,350 - 53,036,487
-------------- -------------- ---------- ----------------------- ---------- ---------- ---------- ----------------- ------------
Carrying
value
as at 31
March
2018 167,248 2,218,226 737,918,263 274,636 708,233 47,240 1,371,441 742,705,287
-------------- -------------- ---------- ----------------------- ---------- ---------- ---------- ----------------- ------------
Cost Land Extended Development/Production Bunk Vehicles Other Capital Total
well assets Houses assets work-in-progress
test
equipment
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 2,297,717 679,763,434 351,9711 796,947 17,795 1,361,703 684,756,815
-------------- -------------- ---------- ----------------------- ---------- ---------- ---------- ----------------- ------------
Borrowing costs capitalised for the period ended 30 September
2018 amounted to US$ 15,126,753 (30 September 2017: US$ 14,289,270
and 31 March 2018: US$ 32,077,622).
9. LONG TERM DEBT FROM BANKS
Maturity 30 September 30 September 31 March
2018 2017 2018
(Unaudited) (Unaudited) (Audited)
------------------------- ----------- ------------- ------------- ------------
Non-current portion of
long term debt 2018/2021 118,303,124 151,559,044 137,661,359
Current portion of long
term debt from banks 34,140,022 40,405,397 32,991,123
Total 152,443,146 191,964,441 170,652,482
-------------------------------------- ------------- ------------- ------------
Current interest rates are variable and weighted average
interest for the period was 6.63 per cent per annum (30 September
2017: 6.31 per cent per annum and 31 March 2018: 6.50 per cent per
annum). The fair value of the above variable rate borrowings are
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 September 30 September 31 March
2018 2017 2018
(Unaudited) (Unaudited) (Audited)
------------------------- ---------- ------------- ------------- ------------
Non-current portion of
long term debt 2022 149,877,132 - 149,790,044
Current portion of long
term debt from banks 3,500,685 76,130,342 4,308,507
Total 153,377,817 76,130,342 154,098,551
------------------------------------- ------------- ------------- ------------
During the period ended 31 March 2018, the Group has issued USD
150 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 5 years i.e. December
2022 further interest on these notes will be 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.)
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 2018, 30 September
2017 and 31 March 2018 are as follows:
Transactions during the period
Particulars Period ended Period ended
30 September 30 September
2018 2017
-------------------------------- ---- -------------- --------------
Transactions with the Holding
Company
78,449,950 17,209,839
Amount Received 3,949,913 5,072,871
Interest accrued
Transactions with KMP
Short term employee benefits 78,815 150,013
Entity over which KMP exercise
control
Share of cost incurred by the
Focus in respect of the Block 42,383,977 33,727,257
Remittances 90,780,000 16,870,000
11. PAYABLE TO RELATED PARTIES
Particulars As at As at As at
30 September 30 September 31 March
2018 2017 2018
--------------------------------- ------------------- -------------- -------------
Entity over which KMP exercise
control
Payable to Focus Energy Limited (62,071,616) 22,699,519 (13,914,912)
Payable with the Holding
Company
Payables to Gynia Holding
Limited 287,040,489 171,354,704 204,640,627
Payable to KMP
Employee obligation 352,985 437,684 355,496
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
Amounts recoverable from Focus represents advance for
expenditure for contract cost in Block RJ-ON/6.
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. Gynia Holding Limited has agreed not to charge
any interest on the additional amount of loan given in the year
2017-18 and 2018-19 for a period of two years
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 2018 30 September
2017
---------------------------- ------------------- --------------
Profit attributable
to shareholders of Indus
Gas Limited, for basic
and dilutive 17,712,033 15,718,106
Weighted average number
of shares (used for
basic profit per share) 182,973,924 182,973,924
No. of equivalent shares - -
in respect of outstanding
options
Diluted weighted average
number of shares (used
for diluted profit per
share 182,973,924 182,973,924
Basic earnings per share
(US$) 0.10* 0.09*
Diluted earnings per
share (US$) 0.10* 0.09*
----------------------------- ------------------- --------------
*Rounded off to the nearest two decimal places.
13. COMMITMENTS AND CONTINGENCIES
At 30 September 2018, the Group had capital commitments of US$
Nil (30 September 2017: US$ Nil; 31 March 2018: US$ Nil) in
relation to property, plant & equipment - development/producing
assets, in the Block.
The Group has no contingencies as at 30 September 2018 (30
September 2017: Nil; 31 March 2018: 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 2018.
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 2018, the Group had current liabilities
amounting to US$ 44,744,986 majority of which is towards current
portion of borrowings from banks and related parties. As at 30
September 2018, the amounts due for repayment (including interest
payable) within the next 12 months for long term borrowings are US$
37,640,707 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 30 September 31 March 2018
2018 2017
----------------------------------------------- ------------- ------------- --------------
Non-current assets
-Other assets 774 885 -
Current assets
-Trade receivables 15,642,575 11,879,600 18,185,854
-Receivables from related
party 62,071,616- - 13,914,912
-Cash and cash equivalents 864,273 1,674,929 13,342,498
----------------------------------------------- ------------- ------------- --------------
Total financial assets 78,579,238 13,555,414 45,443,264
----------------------------------------------- ------------- ------------- --------------
Financial liabilities
measured at amortised
cost
Non-current liabilities
- Long term debt from
banks 268,180,256 151,559,044 287,451,403
- Payable to related parties 287,040,489 171,354,704 204,640,627
Current liabilities
- Long term debt from
banks 37,640,707 116,535,739 37,299,630
- Payable to related parties 352,985 23,137,203 355,496
* Accrued expenses and other liabilities 1,674,208 121,318 1,069,671
----------------------------------------------- ------------- ------------- ------------------
Total financial liability
measured at amortized
cost 594,888,645 462,708,008 530,816,827
----------------------------------------------- ------------- ------------- ------------------
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 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 FEASMAFASEDE
(END) Dow Jones Newswires
December 28, 2018 02:02 ET (07:02 GMT)
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