TIDMINDI

RNS Number : 3174Y

Indus Gas Limited

31 December 2019

Indus Gas Limited and its subsidiaries

("Indus" or the "Company")

Unaudited Condensed Consolidated Interim Financial

Statements for the six month period ended 30 September 2019

Indus Gas Limited (AIM:INDI.L), an oil & gas exploration and development company, is pleased to report its interim results for the six month period ending 30 September 2019.

Consolidated reported adjusted revenues, operating profit and profit before tax for the interim period ending 30 September 2019 were US$ 27.69m (US$ 27.78 interim 2018), US$ 26.30m (US$ 23.42m interim 2018) and US$ 26.11m (US$ 23.57m interim 2018) respectively.

The Company has continued to make provision for a notional deferred tax liability of US$ 1.68m (US$ 5.85m interim 2018), in accordance with IFRS requirements.

The Petroleum & Natural Gas Regulatory Board ("PNGRB") have invited bids for the laying of a gas pipeline from RJ-ON/6 Block for a new pipeline route so that the pipeline tariff is minimized. Approvals from the Directorate General of Hydrocarbons ('DGH') and Government had already been received for the development and enhanced production covering a total field area of 2176 sq. km with approved gas reserves of 1.8 tcf.

Commenting, Peter Cockburn, Chairman of Indus, said:

"While the approval of an integrated Field Development Plan ('FDP') for SSG and SSF and a revised FDP for SGL is already in place, the evacuation of gas through a new pipeline at an appropriate tariff will accelerate the monetization of our gas reserves."

For further information, please contact:

Indus Gas Limited

Peter Cockburn

Jonathan Keeling +44 (0) 20 7877 0022

Arden Partners plc

Ciaran Walsh / Steve Douglas / Dan Gee-Summons (Corporate Finance) +44 (0) 20 7614 5900

James Reed-Daunter (Equity Sales)

Unaudited Condensed Consolidated Statement of Financial Position

 
                                   Notes       As at           As at          As at 
                                            30 September    30 September     31 March 
                                                2019            2018           2019 
                                            (Unaudited)     (Unaudited)     (Audited) 
 
 ASSETS 
 Non-current assets 
 Intangible assets: exploration 
  and evaluation assets               6                -               -              - 
 Property, plant and equipment       7       909,083,224     796,677,681    851,277,557 
 Tax assets                                    2,099,982       2,608,056      2,695,055 
 Other assets                                        590             774            605 
 Total non-current assets                    911,183,796     799,286,511    853,973,217 
                                          --------------  --------------  ------------- 
 Current assets 
 Inventories                                   6,309,798       8,607,174      9,327,984 
 Trade receivables                            25,865,383      15,642,575     27,617,626 
 Recoverable from related 
  party                                       74,920,236      62,071,616     57,098,640 
 Other current assets                             49,807          54,056         10,957 
 Cash and cash equivalents                     6,296,967         864,273        129,152 
 Total current assets                        113,442,191      87,239,694     94,184,359 
                                          --------------  --------------  ------------- 
 Total assets                              1,024,625,987     886,526,205    948,157,576 
                                          ==============  ==============  ============= 
 
 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                (9,313,782)     (9,313,781)    (9,313,782) 
 Merger reserve                               19,570,288      19,570,288     19,570,288 
 Retained earnings                           164,183,991     119,981,026    139,755,664 
 Total shareholders' equity                  224,793,629     180,590,665    200,365,302 
                                          --------------  --------------  ------------- 
 

(All amounts in US$, unless otherwise stated)

 
 
   LIABILITIES 
 Non-current liabilities 
 Long term debt , excluding 
  current portion                  8      232,246,203   268,180,256   249,722,044 
 Provision for decommissioning              1,707,761     1,520,200     1,606,825 
 Deferred tax liabilities (net)            91,125,648    78,885,614    89,442,675 
 Payable to related parties, 
  excluding current portion        10     400,835,351   297,040,487   331,088,491 
 Deferred revenue                          25,563,995    25,563,995    25,563,995 
 Total non-current liabilities            751,478,958   661,190,554   697,424,030 
                                       --------------  ------------  ------------ 
 Current liabilities 
 Current portion of long-term 
  debt                             8       40,909,823    37,640,707    42,869,400 
 Current portion payable to 
  related parties                  10         352,534       352,985       352,909 
 Accrued expenses and other 
  liabilities                               2,013,957     1,674,208     2,068,849 
 Deferred revenue                           5,077,086     5,077,086     5,077,086 
 Total current liabilities                 48,353,400    44,744,986    50,368,244 
                                       --------------  ------------  ------------ 
 Total liabilities                        799,832,358   705,935,540   747,792,274 
                                       --------------  ------------  ------------ 
 Total liabilities and equity           1,024,625,987   886,526,205   948,157,576 
                                       ==============  ============  ============ 
 
 

(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 months ended 
                                                        Six months ended        30 September 
                                                       30 September 2019                2018 
                                                               Unaudited           Unaudited 
------------------------------------  --------------  ------------------   ----------------- 
Revenue                                   27,690,196           27,775,085 
Cost of sales                            (1,089,176)          (3,218,897) 
Administrative expenses                    (303,970)          (1,132,978) 
 
Profit from operations                    26,297,050           23,423,210 
                                       -------------  ------------------- 
Foreign exchange gain/(loss), 
 net                                       (245,732)              142,884 
Interest income                               59,984                   22 
Profit before tax                         26,111,302           23,566,116 
                                       -------------  ------------------- 
 
Income taxes 
 -Deferred tax charge                    (1,682,975)          (5,854,083) 
Profit for the period (attributable 
 to the shareholder of the 
 Group)                                   24,428,327           17,712,033 
                                       -------------  ------------------- 
Total comprehensive income 
 for the period (attributable 
 to the shareholders of the 
 Group)                                   24,428,327           17,712,033 
                                       -------------  ------------------- 
Earnings per share 
Basic                                           0.13                 0.10 
Diluted                                         0.13                 0.10 
                                       -------------  ------------------- 
 
 
 
 
 

(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 
  2019            182,973,924   3,619,443   46,733,689   (9,313,782)   19,570,288         -    139,755,664     200,365,302 
---------------  ------------  ----------  -----------  ------------  -----------  --------  -------------  -------------- 
 Profit for the 
  period               -                -            -             -            -         -     24,428,327      24,428,327 
---------------  ------------  ----------  -----------  ------------  -----------  --------  -------------  -------------- 
 Total 
  comprehensive 
  income for 
  the period           -                -            -             -            -         -     24,428,327      24,428,327 
---------------  ------------  ----------  -----------  ------------  -----------  --------  -------------  -------------- 
 Balance as at 
  30 
  September 
  2019            182,973,924   3,619,443   46,733,689   (9,313,782)   19,570,288         -    164,183,991     224,793,629 
---------------  ------------  ----------  -----------  ------------  -----------  --------  -------------  -------------- 
 
 
 
 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 
--------------------  ------------  ----------  -----------  ------------  -----------      ------------  ------------ 
 

(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 
                                                                              2019                    2018 
                                                                       (Unaudited)             (Unaudited) 
-----------------------------------------  --------------------  -----------------  ------  -------------- 
 (A) Cash flow from operating activities 
 Profit before tax                                                      26,111,302              23,566,116 
 Adjustments 
 Unrealised exchange loss/ (gain)                                          245,732               (142,884) 
 Interest income                                                          (59,984)                    (22) 
 Depreciation                                                              858,756               2,520,327 
 Changes in operating assets and 
  liabilities 
 Inventories                                                             3,018,186               (266,090) 
 Trade receivables                                                       1,752,243               2,543,379 
 Trade and other payables                                                1,136,238               3,171,638 
 Other current and non-current 
  assets                                                                  (38,850)                (19,825) 
 Provisions for decommissioning                                            100,936                (60,896) 
 Other liabilities                                                        (55,267)                 602,026 
                                                                 -----------------  ------  -------------- 
 Cash generated from operations                                         33,069,292              31,913,769 
 Income taxes paid/refund                                                  595,083               (183,529) 
                                                                 -----------------  ------  -------------- 
 Net cash generated from operating 
  activities                                                            33,664,375              31,730,240 
                                                                 -----------------  ------  -------------- 
 
  (B) Cash flow from investing activities 
 Purchase of property, plant and 
  equipment (A)                                                       (54,313,241)            (92,694,415) 
 Interest received                                                          59,984                      22 
 Net cash used in investing activities                                (54,253,257)            (92,694,393) 
                                                                 -----------------  ------  -------------- 
 
   (C) Cash flow from financing 
   activities 
 Repayment of long-term debt from banks                                       (20,034,000)    (18,642,570) 
 Proceed from Related Party                                                     57,600,000      78,449,952 
 Payment of interest                                                          (10,563,571)    (11,464,739) 
 Net cash generated from/(used in) financing 
  activities                                                                    27,002,429      48,342,643 
                                                        ----------------------------------  -------------- 
 Net change in cash and cash equivalents                                         6,413,547    (12,621,510) 
 Cash and cash equivalents at the beginning 
  of the period                                                                    129,152      13,342,498 
 Effect of exchange rate change on cash 
  and cash equivalents                                                           (245,732)         143,285 
                                                        ----------------------------------  -------------- 
 Cash and cash equivalents at the end of 
  the period                                                                     6,296,967         864,273 
                                                        ----------------------------------  -------------- 
 
 
 

(A) The purchase of property, plant and equipment above, includes additions to exploration and evaluation assets amounting to US$ 3,613,943 (previous period: Nil) 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 3).

   2.   BASIS OF PREPARATION 

The unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2019 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 2019.

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 2019.

These unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2019 and have been approved for issue by the Board of Directors.

3. 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 'Participating 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.

The block is divided into 3 fields- SGL, SSF and SSG. 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 is 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 2019 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        30 September     31 March 2019 
                                            2019                    2018 
                                         (Unaudited)         (Unaudited)       (Audited) 
--------------------------  ------------------------  ------------------  ----------------- 
Non-current assets                       909,083,224         796,677,681     851,277,557 
Current assets                            81,230,034          70,678,790      66,426,624 
Non-current liabilities                    1,707,761           1,520,200      1,606,825 
Current liabilities                                -                   -            - 
Expenses (net of finance 
 income)                                   1,136,238           3,171,638        4,697,750 
Commitments                             -                              -           - 
 
 
 

Further, the SSF and SSG field has also received its declaration of commerciality on 24(th) November ,2014. Subsequent to the declaration of commerciality for SSF and SSG discovery, ONGC did not exercise the option to acquire 30 percent in respect of SSF and SSG field. The participating interest in SSF and SSG field between Focus, Iservices and Newbury will remain in ratio of 10 percent, 65 percent and 25 percent respectively for exploration and evaluation cost and production revenue for SSF and SSG in the block.

4. 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 2019.

5. SEGMENT REPORTING

Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the management 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.

6. 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 2019                - 
  Additions (A)                                                         3,793,633 
  Transfer to development assets (B)                                  (3,793,633) 
  Balance as at 30 September 2019                                                 - 
  Balance at 01 April 2018                                                        - 
 Additions (A)                                                                  - 
 Transfer to development assets (B)                                             - 
 
  Balance as at 30 September 2018                                                 - 
 
   Balance as at 01 April 2018                                                    - 
  Additions (A)                                                           9,569,925 
  Transfer to development assets (B)                                    (9,569,925) 
  Balance as at 31 March 2019                                                     - 
 
 
 

(A) The above includes borrowing costs of US$ 93,383 for the period ended 30 September 2019 (30 September 2018: Nil and 31 March 2019: US$ 314,083). The weighted average capitalisation rate on funds borrowed generally is 6.73 per cent per annum (30 September 2018: 6.86 per cent per annum and 31 March 2019: 6.70 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 DGH as on 23 June 2017. Accordingly, the cost incurred on the aforesaid fields from 23 June 2017 are capitalised directly to development cost.

7. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment comprise of the following:

 
 Cost                       Land    Extended       Development      Production     Bunk       Vehicles        Other       Capital                 Total 
                                   well test            Assets          Assets    Houses                     assets   work-in-progress 
                                   equipment 
----------------------  --------  ----------  ----------------  --------------  ----------  ----------  -----------  -----------------  --------------- 
 Balance as at 
  1 April 2019           167,248   4,587,730       678,038,141     212,011,941   5,926,920   4,773,327    1,690,100      1,636,932       908,832,339 
 Additions                     -         805        58,639,020      16,994,002       -           -            5,140       279,706          75,918,673 
  Disposals/Transfers          -           -      (16,994,002)                       -           -                -           -            (16,994,002) 
----------------------  -------- 
 Balance as at 
  30 
  September 2019         167,248   4,588,535       719,683,159     229,005,943   5,926,920   4,773,327    1,695,240      1,916,638       967,757,010 
----------------------  --------  ----------  ----------------  --------------  ----------  ----------  -----------  -----------------  --------------- 
 Accumulated depreciation 
 Balance as at 
  1 April 2019                 -   2,282,425          -             43,641,189   5,782,117   4,243,213    1,605,838          -             57,554,782 
 Depreciation for 
  the period                   -      91,698          -                858,756    55,121       91,608        21,821          -              1,119,004 
----------------------  --------  ----------  ----------------  --------------  ----------  ----------  -----------  -----------------  --------------- 
 Balance as at 
  30 September 2019            -   2,374,123            -           44,499,945   5,837,238   4,334,821    1,627,659          -             58,673,786 
----------------------  --------  ----------  ----------------  --------------  ----------  ----------  -----------  -----------------  --------------- 
 Carrying value 
 As at 30 September 
  2019                   167,248   2,214,412       719,683,159    184,505,998     89,682      438,506      67,581        1,916,638       909,083,224 
----------------------  --------  ----------  ----------------  --------------  ----------  ----------  -----------  -----------------  --------------- 
 
 
 Cost                   Land      Extended    Development    Production      Bunk      Vehicles      Other         Capital        Total 
                                  well test      Assets         assets       houses                  assets    work-in-progress 
                                  equipment 
---------------------  --------  ----------  -------------  ------------  ----------  ----------  ----------  -----------------  ---------------- 
 Balance as at 1 
  April 2018            167,248   4,324,033    587,114,867   190,449,112   5,926,920   4,767,563   1,620,590      1,371,441           795,741,774 
 Additions                    -      99,143     46,668,030                         -       -        50,952          88,709             56,750,865 
  Disposals/Transfers         -           -              -    9,844,031            -       -           -               -                        - 
---------------------  -------- 
 Balance as at 30 
  September 2018        167,248   4,423,176    638,140,443   200,293,143   5,926,920   4,764,563   1,671,542      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    638,140,443   158,127,100    209,720     616,291     83,514        1,460,150           796,677,681 
---------------------  --------  ----------  -------------  ------------  ----------  ----------  ----------  -----------------  ---------------- 
 
 
 Cost                   Land      Extended    Development    Production     Bunk houses    Vehicles        Other          Capital            Total 
                                  well test                   assets                                        assets        work-in-progress 
                                  equipment 
---------------------  --------  ----------  -------------  -------------  -------------  --------------  -------------  -----------------  ---------------- 
 Balance as at 
  1 April 2018          167,248   4,324,033    587,114,867    190,449,112      5,926,920       4,767,563      1,620,590       1,371,441          795,741,774 
 Additions                    -     263,697     90,923,274                             -           5,764         69,510            265,491       113,090,565 
  Disposals/Transfers         -           -              -     21,562,829              -               -              -                  -                 - 
---------------------  -------- 
 Balance as at 
  31 March 2019         167,248   4,587,730    678,038,141    212,011,941      5,926,920       4,773,327      1,690,100    1,636,932            908,832,339 
---------------------  --------  ----------  -------------  -------------  -------------  --------------  -------------  -----------------  ---------------- 
 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                  -     176,618              -      3,995,473        129,833         183,883         32,488            -               4,518,295 
---------------------  --------  ----------  -------------  -------------  -------------  --------------  -------------  -----------------  ---------------- 
 Balance as at 
  31 March 2019               -   2,282,425              -     43,641,189      5,782,117      4,243,213       1,605,838            -              57,554,782 
---------------------  --------  ----------  -------------  -------------  -------------  --------------  -------------  -----------------  ---------------- 
 Carrying value 
 As at 31 March 
  2019                  167,248   2,305,305    678,038,141    168,370,752      144,803        530,114            84,262       1,636,932          851,277,557 
---------------------  --------  ----------  -------------  -------------  -------------  --------------  -------------  -----------------  ---------------- 
 

Borrowing costs capitalised for the period ended 30 September 2019 amounted to US$ 23,309,017 (30 September 2018: US$ 15,126,753 and 31 March 2019: US$ 41,500,334).

8. LONG TERM DEBT FROM BANKS

 
                             Maturity    30 September   30 September      31 March 
                                                 2019           2018          2019 
                                          (Unaudited)    (Unaudited)     (Audited) 
-------------------------  -----------  -------------  -------------  ------------ 
 Non-current portion of 
  long term debt            2021/2024      82,061,620    118,303,124       100,003,278 
 Current portion of long 
  term debt from banks                     37,276,490     34,140,022        39,171,055 
 Total                                    119,338,110    152,443,146   139,174,333 
--------------------------------------  -------------  -------------  ------------ 
 

Current interest rates are variable and weighted average interest for the period was 6.73 per cent per annum (30 September 2018: 6.63 per cent per annum and 31 March 2019: 6.70 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 September   30 September      31 March 
                                                     2019           2018          2019 
                                              (Unaudited)    (Unaudited)     (Audited) 
------------------------------  ----------  -------------  -------------  ------------ 
 Non-current portion of long 
  term debt                        2022       150,184,583    149,877,132       149,718,766 
 Current portion of long term 
  debt from banks                               3,633,333      3,500,685         3,698,345 
 Total                                        153,817,916    153,377,817   153,417,111 
------------------------------------------  -------------  -------------  ------------ 
 

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 8.1 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.

9. 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 Key Management   Focus Energy Limited 
  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 2019 and 30 September 2018 are as follows:

Transactions during the period

 
 Particulars                                   Period ended    Period ended 
                                          30 September 2019    30 September 
                                                                       2018 
--------------------------------  ----  -------------------  -------------- 
 Transactions with the Holding 
  Company 
                                                 57,600,000      78,449,950 
  Amount Received                                12,146,860       3,949,913 
   Interest paid 
 
 Transactions with KMP 
 Short term employee benefits                        97,900          78,815 
 
 Entity over which KMP exercise 
  control 
 Share of cost incurred by 
  the Focus in respect of the 
  Block                                          32,180,404      42,383,977 
 Remittances                                     50,002,000      90,780,000 
--------------------------------------  -------------------  -------------- 
 

10. PAYABLE TO RELATED PARTIES

 
 Particulars                             As at                As at             As at 
                                      30 September         30 September        31 March 
                                          2019                 2018              2019 
--------------------------------  -------------------  -------------------  ------------- 
 Entity over which KMP exercise 
  control 
 Payable to Focus Energy 
  Limited                                (74,920,236)         (62,071,616)   (57,098,640) 
 Payable with the Holding 
  Company 
 Payables to Gynia Holding 
  Limited*                                400,835,351          287,040,487    331,088,491 
 
   Payable to KMP 
 Employee obligation                          352,534              352,985        352,909 
 
 

*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.

Amount receivable from Focus

Amount receivable from Focus represents excess amounts paid to them in respect of the Group's share of contract costs, for its participating interest 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. Some part of the outstanding balance (including interest) was made subordinate to the loans taken from the banks as per the sanction terms of the banks and, 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 6 and 7.

11. 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 2019    30 September 
                                                                       2018 
-------------------------------------   -------------------  -------------- 
 
 Profit attributable to shareholders 
  of Indus Gas Limited, for basic 
  and dilutive                                   24,428,327      17,712,033 
 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$)                       0.13*           0.10* 
 Diluted earnings per share 
  (US$)                                               0.13*           0.10* 
--------------------------------------  -------------------  -------------- 
 

*Rounded off to the nearest two decimal places.

12. COMMITMENTS AND CONTINGENCIES

At 30 September 2019, the Group had capital commitments of US$ Nil (30 September 2018: US$ Nil; 31 March 2019: US$ Nil) in relation to property, plant & equipment - development/producing assets, in the Block. The Group has no contingencies as at 30 September 2019 (30 September 2018: Nil; 31 March 2019: Nil).

13. 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 2019.

14. 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 incurred in respect to the SGL field. 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.

15. BASIS OF GOING CONCERN ASSUMPTION

As at 30 September 2019, the Group had current liabilities amounting to US$ 48,353,400 majorities of which is towards current portion of borrowings from banks and related parties. As at 30 September 2019, the amounts due for repayment (including interest payable) within the next 12 months for long term borrowings are US$ 40,909,823 which the Group expects to meet from its internal generation of cash from operations.

Further the group is contemplating to raise funds which will be used for planned capital expenditures.

16. 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 
                                                          2019           2018          2019 
-----------------------------------------------  -------------  -------------  ------------ 
 Non-current assets 
 -Other assets                                             590            774           605 
 Current assets 
 -Trade receivables                                 25,865,383     15,642,575    27,617,626 
  -Receivables from related 
   party                                            74,920,236     62,071,616    57,098,640 
 -Cash and cash equivalents                          6,296,967        864,273       129,152 
-----------------------------------------------  -------------  -------------  ------------ 
 Total financial assets                            107,083,176     78,579,238    84,846,023 
-----------------------------------------------  -------------  -------------  ------------ 
 Financial liabilities measured 
  at amortised cost 
  Non-current liabilities 
 - Long term debt from banks                       232,246,203    268,180,256       249,722,044 
 - Payable to related parties                      400,835,351    297,040,487       331,088,491 
 Current liabilities 
 - Long term debt from banks                        40,909,823     37,640,707        42,869,400 
 - Payable to related parties                          352,534        352,985           352,909 
 
   *    Accrued expenses and other liabilities       2,013,957      1,674,208         2,068,849 
-----------------------------------------------  -------------  -------------  ---------------- 
 Total financial liability 
  measured at amortized cost                       676,357,868    604,888,643       626,101,693 
-----------------------------------------------  -------------  -------------  ---------------- 
 
 

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 FDFFMSFUSEDE

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