TIDMSPL
RNS Number : 3363B
SKIL Ports & Logistics Limited
16 June 2016
16 June 2016
SKIL Ports & Logistics Limited
("SPL" or the "Company")
Preliminary results for the year ended 31 December 2015
SPL, which is developing a modern port and logistics facility in
Mumbai, India, is pleased to announce its preliminary results for
the year ended 31 December 2015.
Highlights
-- Reclamation of 30 hectares to be completed by the end June
-- Dredging progressing as scheduled
-- 58 Piles have been laid for the construction of the jetty
-- Ground improvement commenced and progressing according to the schedule
Further targets for 2016
-- July 2016 - complete the approach channel dredging
-- August 2016 - equipment finalisation and ordering
-- November 2016 - installation of infrastructure utilities
-- December 2016 - completion of phase 1 of the jetty
-- December 2016 - completion of dredging in the harbour basin
Nikhil Gandhi Executive Chairman of SPL said, "We have made good
progress in developing a modern port facility in Mumbai, and we
have also initiated discussions with operators and end users.
Modern ports and logistics facilities are essential engines needed
for a country's growth. I have no doubt that we will meet future
challenges and be an integral part of the growth of this remarkable
region through the development of the Karanja facility."
The Company has uploaded further images, and drone footage, to
its website, illustrating the ongoing site works at the port. These
photos can be viewed by visiting -
http://www.skilpl.com/news.html.
Enquiries:
SPL Nikhil Gandhi
C/O Redleaf PR +44 (0) 20 382 4769
Cenkos Securities plc Stephen Keys/Camilla Hume
(Nomad and Broker) +44 (0) 20 7397 8926
Redleaf PR Charlie Geller
(Financial PR) Sam Modlin
+44 (0) 20 382 4769 / SKIL@redleafpr.com
Chairman's Statement
SKIL Ports & Logistics Limited ("SPL" or the "Company") and
its subsidiaries (the "Group") made significant progress in 2015.
Work commenced on site in earnest in February and, whilst some time
was spent resolving local issues from the middle of March 2015,
full time work on site resumed in late October and has continued
uninterrupted since. The Project has progressed well this year and
the Company set out the key milestones in March 2016 that it needs
to achieve to ensure that our facility in Navi Mumbai is part
operational this year.
The Group is pleased to report the following status of
works:
-- Reclamation of 30 hectares to be completed by the end June
-- Dredging progressing as scheduled
-- 58 Piles have been laid for the construction of the jetty
-- Ground improvement commenced and progressing according to the schedule
In the coming months the Group aims to achieve the following
targets:
-- July 2016 - complete the approach channel dredging
-- August 2016 - equipment finalisation and ordering
-- November 2016 - installation of infrastructure utilities
-- December 2016 - completion of phase 1 of the jetty
-- December 2016 - completion of dredging in the harbour basin
As at 31 December 2015, the Group had cash resources of GBP38.5
million and headroom in its banking facilities of approximately
GBP32 million.
The Group expects that by end June 2016 it will have cash
resources of approximately GBP18 million and headroom in its
banking facilities of approximately GBP15 million.
Work has progressed as per the key milestones detailed in the
update in March 2016 and management remain in consultation with the
lead contractor on a weekly basis to ensure that the final
configuration, fit out and specification of the facility will
optimise port operations and, therefore, returns for shareholders.
It is becoming apparent that these discussions are likely to
conclude that the optimum facility fit out will require additional
funds and, whilst the management of SPL believe that the Group is
not currently working capital constrained, they will consider a
number of scenarios to secure any additional funding requirements.
These considerations include increasing the current debt facility,
securing a strategic partner to invest in the Company's subsidiary
operating company, or a placing which would be available to all
shareholders, or a combination of the above. The Group will update
shareholders on its conclusions in the coming months.
In addition, whilst conversations with the main contractor
continue, the Group is also considering the merits of incorporating
a ship repair facility to the overall capability, which it believes
has the potential to deliver attractive returns. Whilst not part of
the original plan, environmental clearance has been received to
build this facility and the Board of Directors of SPL will evaluate
this alongside other considerations for the optimum configuration
of the facility.
As the works on the ground advance, the Group has continued to
prepare for the facility being operational. In particular, the
Group has commenced discussions with parties, both domestically and
internationally, with a view to appointing a partner that will
operate the facility. Initial feedback has been positive and the
Group will update shareholders in this regard in due course.
The Board has reported previously that it has entered into
discussions with a number of potential end-users of the facility.
This task has been made easier now that construction is well
advanced and potential clients are able to visit the site and see
the physical progress themselves. The Group expects to provide
further information in this regard in the coming months.
The Company is also actively seeking to add two additional, UK
based, non-executive directors to its Board. The Company expects to
announce their appointment shortly.
Modern ports and logistics facilities are essential engines
needed for a country's growth. I have no doubt in my mind that SPL
will meet any future challenges and be part of the growth for this
remarkable region through the development of the Karanja facility.
The excitement of India's potential can be felt across the country
and the interest in building a world class facility at Karanja can
be seen and felt throughout the area. I would like to thank the
whole team at SPL who have laboured long and hard over the years as
well as my fellow Board of Directors whose advice and support is
immeasurable.
Nikhil Gandhi
Executive Chairman
SKIL Ports & Logistics Limited
DIRECTORS' REPORT
for the period ended 31 December 2015
The Directors ("Directors") of SPL present their report and the
audited consolidated financial statements of the Company and the
"Group for the period ended 31 December 2015.
Status
The Company was incorporated and registered under The Companies
(Guernsey) Law, 2008 with registered number 52321 on 24 August
2010. On 7 October 2010 its ordinary shares of no par value were
listed on the London Stock Exchange's AIM market ("AIM").
The Company's subsidiaries are Karanja Terminal & Logistics
(Cyprus) Limited and Karanja Terminal & Logistics Private
Limited, incorporated in August 2010 in Cyprus and in May 2010 in
India respectively.
Principal Activity
The principal activity of the Company is to act as a holding
company established to develop, own and operate port and logistics
facilities.
Statement of Directors' Responsibilities
In accordance with The Companies (Guernsey) Law, 2008, the
Directors are responsible for preparing financial statements for
each financial year, which give a true and fair view, in accordance
with applicable law and regulations. In preparing the financial
statements, the Directors are required to:
-- Select suitable accounting policies and apply them consistently;
-- Make judgments and estimates that are reasonable and prudent;
-- State whether applicable accounting standards have been
followed, subject to any material departures noted in the financial
statements; and
-- Prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Group's
transactions and disclose, with reasonable accuracy at any time,
the financial position of the Group and enable them to ensure that
the financial statements comply with The Companies (Guernsey) Law,
2008. They are also responsible for safeguarding the assets of the
Group and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities. The Directors are
responsible for the maintenance and integrity of the corporate and
financial information included on the Company's website.
Auditor
Grant Thornton UK LLP has expressed its willingness to continue
in office as auditors, and a resolution to re-appoint Grant
Thornton will be proposed at the forthcoming annual general
meeting. Each of the directors at the date of approval of the
financial statements confirms that:
-- so far as he is aware, there is no relevant audit information
of which the Company's auditors are unaware; and
-- he has taken all steps he ought to have taken as a director
to make himself aware of any relevant audit information and to
establish that the Company's auditors are aware of that
information.
Signed for and on behalf of the Board on 16 June, 2016
..........................................
Nikhil Gandhi, Chairman
STRATEGIC REPORT
I. Principal Business Objective
The Group's principal objective is to develop ports &
logistics facilities in India. The Company's first project is being
developed at Karanja in close proximity of the city of Mumbai and
also Jawaharlal Nehru Port Trust (JNPT), which is India's largest
and busiest container handling port.
II. Business Review
SKIL Ports & Logistics Limited was formed to build ports and
logistics facilities. The first project being developed is in the
Indian state of Maharashtra. The Company has started the
development of its port and logistics facility in Karanja, Navi
Mumbai, Maharashtra, India. The process to get to the development
stage has been difficult due to the length of time it took to get
the environmental clearance. Moving forward, the EPC (Engineering,
Procurement and Construction) contractor that has been picked by
the Board of SPL has a great reputation for building marine
infrastructure and the Company is expecting revenues to be
generated from their facility during 2017.
As work has started on site the cash burn related to the
development of the facility has dramatically increased. The Group
had cash or cash equivalents of GBP38.56 million on 31st December
2015 versus GBP41.04 million at 31st December 2014. During the
course of the 1(st) Quarter of 2016 the cash burn has continued to
increase in line with management's expectation and timelines. The
unaudited cash balance for 31st March 2016 is GBP37.67 million. The
Company has also announced that the debt funding of INR 480 crore
(GBP48.91 million) is in place and the facility is syndicated by 4
Indian Public Sector Banks. The borrowings are secured by the
hypothecation of the port facility and pledge of its shares. The
Company has utilised bank borrowing of INR 167.87 crore (GBP17.10
million) as on 31st December 2015. Based on the cash forecast, the
future drawn down of the borrowings is as follows:
Period INR in crore GBP000
---------- --------------- -------------
Q1 2016 50.00 5.09
---------- --------------- -------------
Q2 2016 111.12 11.32
---------- --------------- -------------
Q3 2016 38.40 3.91
---------- --------------- -------------
Q4 2016 52.80 5.38
---------- --------------- -------------
Q1 2017 48.00 4.89
---------- --------------- -------------
Q2 2017 9.60 0.98
---------- --------------- -------------
Q3 2017 2.21 0.23
---------- --------------- -------------
The Company is not currently working capital constrained and the
Company is confident of its ability to raise further funds to meet
cost overruns, project enhancements or working capital
requirements. The Directors therefore believe that the Company is a
going concern.
III. Principal risks and uncertainties
The Directors believe that the management of the business and
the implementation of the Group's plans are potentially exposed to
a variety of risks. The admission document published by the Company
in connection with Admission (a copy of which is available on the
Company's website at www.skilpl.com) sets out a number of the
principal risks that the Directors considered, at the time of
Admission, the Company and its business were potentially exposed
to. Potential financial risks have also been disclosed in the
Company's accounts and specifically the notes thereto.
IV. Strategies
-- Timely completion of Karanja build-out and establish efficient port operating practices
-- Identification of suitable locations for more ports &
logistics facilities from a technical and commercial perspective to
serve India's growing Export-Import (EXIM) trade and internal
logistics requirements.
-- To maintain strong relationships with leading Indian and
multi-national banks to have access to debt funding for developing
the projects as SPVs.
-- To keep abreast of all policy developments relating to trade,
environment, labour laws etc. that may have any impact on the
business potential of the ports and allied sectors.
-- To maintain strong relationships with key government
departments including shipping, ports, finance environment,
etc.
-- To maintain regular communication with all stakeholders.
-- Selection of world-class EPC contractor for project engineering and construction.
-- Maintain a strong in-house project management team to ensure
timely completion within budget.
-- Engage in intense & continuous marketing of the facilities.
V. Business Model
-- The business model is to successfully develop and efficiently
operate profit-making projects (ports & logistics facilities).
These ports may be shallow draft ports (as is the case at Karanja)
or deep draft ports at other locations along the Indian
Coast-line.
-- In Karanja specifically, the business model for the port is three pronged:
- Mid-stream Discharge and Loading of Cargo while vessels wait
at anchorage for a berth in JNPT.
- Coastal Movement of Cargoes such as Containers, Cement and
other break-bulk cargo that typically ply in smaller vessels.
- The Facility would particularly benefit from having an
integrated Container Freight Station (CFS) (logistics facility)
which would help in easing congestion issues in the storage yard of
the port - a problem that currently plagues JNPT.
VI. Key Business Drivers
-- India's growing EXIM (Export & Import) trade: The
significant increase in India's international trade during the
recent years has resulted in a sharp increase in traffic handled at
India's major ports to 606.4 million tonnes in year 2015, as
compared to 581 million tonnes in 2014, a growth of 4.3%. However,
the growth in India's port traffic is expected to be sustained at
approximately 12% to 15% per year during the next decade. (Source:
Indian Ports Association and Crisil Research Report)
-- Severe need/shortage of efficient port facilities in India:
In the current scenario, the Major Ports in India are insufficient
to meet the country's current and anticipated needs, with outdated
berth configuration, outmoded cargo handling equipment,
insufficient maintenance and inadequate operational draft.
Congestion within the ports means longer waiting times for ships,
which increases transaction costs and has an adverse impact on the
logistics chain. This provides several development opportunities to
tap into trade requirements by building ports and logistics
infrastructure at strategic locations, such as Karanja.
-- Need for good rail and road connectivity: Road transport
capacity is unable to compensate for the Major Ports'
inefficiencies due to poor linkages, and railways lack the
necessary equipment and structure to ensure a steady flow of
container traffic.
-- Trend of containerisation: Container traffic at major ports
is expected to grow at a Compounded Annual Growth Rate (CAGR) of
20% between 2014 and 2020 from 11 million TEUs to 22 million TEUs.
Capacity of container handling at major ports is expected to reach
30 million TEUs by 2020 while, container traffic at non-major ports
is expected to grow at a CAGR of 42% in the same period to reach
16.5 million TEUs by 2020. JNPT's share of Indian containerized
EXIM cargo is about 4.4 million TEUs in 2015 (over 45% of country's
containerised cargo) and is poised to handle 10 million TEU's by
year 2020. Hence any facility in/around JNPT will continue to have
good potential for cargo, as is the case with Karanja. In general
the trend of containerisation of cargo in the country is likely to
continue. (Source: Crisil Research Report, JNPT report)
-- Competition: New port development or expansion of existing
ports in the region could impact the future performance and
position of the business. JNPT has plans to develop the fourth and
fifth container terminals, which could ease congestion on the sea
side of the port; however, there is no scope for expansion on the
landward side. The already congested rail and road networks leading
to JNPT will be further burdened with addition of traffic capacity
on the sea side of the port.
-- Clarity and consistency in regulatory/policy framework: As is
the case in any other business activity, port development,
operating and logistics business is also impacted by incentives and
policy changes effected by state and central governments.
VII. Risk Management
Currently, the principal risks facing the entity emanate from
risks specific to the Karanja development.
Risk factors and their mitigation measures are as follows:
-- Regulatory Risk: While the company has received all necessary
approvals for the development phase of the project, future risks of
change in policies impacting operating areas such as tariff
policies, cabotage laws etc., continue to remain. However, the
Group's strong reputation will be instrumental in navigating any
such hurdles along the way.
-- Tax Risk: A recent Court judgement allows for interest income
to be set off against the preoperative expenditure and is not
chargeable to income tax. KTLPL, however has accrued full tax
liability.
-- Construction & Completion Risk: Mr. Nikhil Gandhi has
over two decades of experience in successfully implementing mega
infrastructure projects. While time and cost overrun are common to
large scale infrastructure projects, they can be mitigated to a
large extent by selection of a world class EPC contractor and by
tight project management from the company's side. The company has
appointed ITD Cementation, a leading EPC contractor with expansive
experience in maritime construction, and also has access to a
strong in-house project management team.
-- Funding Risk: The Company currently is not capital
constrained. Should it need to raise further funds to optimize the
configuration of and complete the facility or for general working
capital purposes the Directors believe the Group has a variety of
funding options available to it including a strategic investment,
an equity placement to new/or existing shareholders, or an increase
in the current debt facility. Should any of these funding sources
not be available to the Company the Group can configure the project
in a manner reflective of available funding.
-- Foreign Exchange Risk: The exchange difference arising due to
foreign currency exchange rate variances on translating a foreign
operation into the presentational currency results in a translation
risk. There are no flows between the parent and KTLPL and
therefore, there are no other currency risks.
-- Marketing Risk: Marketing Risk refers to the risk that the
company may not be able to generate sufficient cargo for the port.
To mitigate this risk, the company has appointed Mr. Umesh Grover
and Mr. Ajay Khera as Head and Co-Head of Business Development and
Sales & Marketing respectively. They have extremely well
regarded track records of around 35-40 years each. Mr. Grover
headed the Container Business and Marketing at the Shipping
Corporation of India (SCI) for several years, and retired as a
Director on the Board of the SCI, while Mr. Khera was an Executive
Director with the state owned Central Warehousing Corporation prior
to joining the Group. The company benefits immensely under their
experience and relationships in the fields of shipping and
logistics.
-- Financial and Non-financial Key Performance Indicators (KPIs)
- Given that the project is currently in the development phase,
the directors are measuring the progress of the project by closely
monitoring the construction schedule and achievements of milestones
thereof. The company submits to the board an updated note on a
monthly basis which includes an update on construction.
The financial parameters that will be monitored once the
facility becomes operational are:
-- Return on Equity
-- Internal Rate of Return
-- NPV (Net Present Value)
-- DSCR (Debt Service Coverage Ratio)
-- Current Ratio
-- Quick Ratio
-- Debt/Equity
-- Gross Margins/EBITDA Margins/Operating Margins
-- NAV (Net Asset Value) per share
- Non-Financial: Not Applicable at the moment.
The non-financial parameters that will be monitored once the
facility becomes operational are:
-- Turnaround time for cargo
-- Capacity utilisation
-- Cargo evacuation time
-- Compliance with Environmental regulations and other legal
matters
VIII. Corporate Social Responsibility (CSR)
Social, community and human rights issues:
The Company proposes to engage in several CSR initiatives over
the tenure of its lease agreement with the Maharashtra Maritime
Board. Funds will be allocated for the various CSR initiatives once
the total budget of the same is passed by the board.
The CSR Program will address the following areas for community
development in the Chanje area:
Ø Education/Literacy Enhancement : 15% of the total budget
Ø Employment /Skill Development : 20% of the total budget
Ø Community Development : 10% of the total budget
Ø Health and Sanitation : 15% of the total budget
Ø Help to the Fishermen Community : 15% of the total budget
Ø Social Amenities/Infrastructure Development : 10% of the total budget
Ø Environment Protection : 15% of the total budget
These are indicative percentages; actual expenditure amongst
these thrust areas will depend upon local needs and discussion with
local government bodies, citizen forums etc.
INDEPENT AUDITOR'S REPORT TO THE MEMBERS OF SKIL PORTS &
LOGISTICS LIMITED
We have audited the consolidated financial statements of SKIL
Ports & Logistics Limited for the year ended 31 December 2015
which comprise the Consolidated Statement of Comprehensive Income,
the Consolidated Statement of Financial Position, the Consolidated
Statement of Cash Flows, the Consolidated Statement of Changes in
Equity and the related notes. The financial reporting framework
that has been applied in their preparation is applicable by law and
International Financial Reporting Standards as adopted by the
European Union.
This report is made solely to the Company's members, as a body,
in accordance with Section 262 of The Companies (Guernsey) Law,
2008. Our audit work has been undertaken so that we might state to
the company's members those matters we are required to state to
them in an audit report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company and the company's members as a
body, for our audit work, for this report, or for the opinions we
have formed.
Respective responsibilities of Directors and Auditor
As explained more fully in the Statement of Directors'
Responsibilities set out on page 5 the Directors are responsible
for the preparation of the consolidated financial statements which
give a true and fair view.
Our responsibility is to audit and express an opinion on the
consolidated financial statements in accordance with applicable law
and International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing Practices Board's
Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and
disclosures in the consolidated financial statements sufficient to
give reasonable assurance that the consolidated financial
statements are free from material misstatement, whether caused by
fraud or error. This includes an assessment of: whether the
accounting policies are appropriate to the group's circumstances
and have been consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made by the
directors; and the overall presentation of the consolidated
financial statements. In addition, we read all the financial and
non-financial information in the annual report to identify material
inconsistencies with the audited consolidated financial statements.
If we become aware of any apparent material misstatements or
inconsistencies we consider the implications for our report.
Opinion on the financial statements
In our opinion the consolidated financial statements:
-- Give a true and fair view of the state of the Group's affairs
as at 31 December 2015 and of its loss for the year then ended;
-- Are in accordance with International Financial Reporting
Standards as adopted by the European Union; and
-- Comply with The Companies (Guernsey) Law, 2008.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters
where The Companies (Guernsey) Law, 2008 requires us to report to
you, if in our opinion:
-- Proper accounting records have not been kept by the Group; or
-- The consolidated financial statements are not in agreement with the accounting records; or
-- We have not obtained all the information and explanations,
which to the best of our knowledge and belief are necessary for the
purposes of our audit.
Grant Thornton UK LLP
Chartered Accountants,
30 Finsbury Square,
London EC2A 1AG,
United Kingdom
16 June, 2016
Consolidated Statement of Comprehensive Income
for the Year ended 31 December 2015
Notes Year ended Year
31 Dec ended
15 31 Dec
GBP000 14
GBP000
CONTINUING OPERATIONS
Revenue - -
----------- --------
- -
Administrative Expenses 5 (2,214) (1,936)
----------- --------
OPERATING LOSS (2,214) (1,936)
Finance Income 6 2,352 2,665
Finance Cost - -
----------- --------
NET FINANCING INCOME 2,352 2,665
----------- --------
PROFIT BEFORE TAX 138 729
Tax expense for the year 7 (808) (862)
----------- --------
Loss FOR THE YEAR (670) (133)
=========== ========
(Loss)/profit for the year attributable
to:
Non-controlling interest - 2
Owners of the parent (670) (135)
----------- --------
Loss for the year (670) (133)
=========== ========
Other Comprehensive Income / (expense):
Items that will not be reclassified
subsequently to profit or loss - -
Items that will be reclassified
subsequently to profit or loss
Exchange differences on translating
foreign operations 348 1,641
----------- --------
Other comprehensive income/(expense)
for the year 348 1,641
----------- --------
Total comprehensive income/(expense)
for the year (322) 1,508
=========== ========
Total comprehensive income/(expense)
for the year attributable to:
Non-controlling interest - 2
Owners of the parent (322) 1,506
----------- --------
(322) 1,508
=========== ========
Earnings per share (consolidated):
Basic & Diluted, for the year
attributable to ordinary equity
holders (pence) 9 (0.015) (0.003)
The notes form part of these consolidated
financial statements.
Consolidated Statement of Financial Position
as at 31 December 2015
Notes Year ended Year ended
31 Dec 31 Dec
15 14
GBP000 GBP000
Assets
Property, plant and equipment 10 28,780 15,508
----------- -----------
Total non-current assets 28,780 15,508
----------- -----------
Trade and other receivables 11 15,832 16,320
Cash and cash equivalents 12 38,569 41,041
----------- -----------
Total current assets 54,401 57,361
Total assets 83,181 72,869
=========== ===========
Equity
Share Premium 14 71,590 71,590
Retained earnings 14 4,464 5,134
Translation Reserve 14 (19,652) (20,000)
----------- -----------
Equity attributable to owners
of parent 56,402 56,724
----------- -----------
Non-controlling Interest 15 15
----------- -----------
Total equity 56,417 56,739
----------- -----------
Liabilities
Non-current
Borrowings 15 17,201 9,412
----------- -----------
Non-current liabilities 17,201 9,412
----------- -----------
Current
Borrowings 15 27 9
Current tax liabilities 16 6,642 5,724
Trade and other payables 17 2,894 985
----------- -----------
Current liabilities 9,563 6,718
----------- -----------
Total liabilities 26,764 16,130
----------- -----------
Total equity and liabilities 83,181 72,869
=========== ===========
The notes form part of these
consolidated financial statements.
Consolidated Statement of Cash Flows
for the Year ended 31 December 2015
Notes Year ended Year ended
31 Dec 15 31 Dec 14
GBP000 GBP000
CASH FLOWS FROM OPERATING
ACTIVITIES
Profit before tax 138 729
Non cash flow adjustments 19 (2,192) (2,301)
----------- -----------
Operating profit before
working capital changes (2,054) (1,572)
Net changes in working
capital 19 2,397 (7,794)
----------- -----------
Net cash from operating
activities 343 (9,366)
----------- -----------
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of property, plant
and equipment (13,222) (8,861)
Finance Income 2,352 2,665
Net cash used in investing
activities (10,870) (6,196)
----------- -----------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from new borrowing 7,807 9,368
Net cash from financing
activities 7,807 9,368
----------- -----------
Net change in cash and
cash equivalents (2,720) (6,194)
Cash and cash equivalents,
beginning of the year 41,041 45,796
Exchange differences on
cash and cash equivalents 248 1,439
----------- -----------
Cash and cash equivalents,
end of the year 38,569 41,041
=========== ===========
Consolidated Statement of Changes in Equity
for the Year ended 31 December 2015
Share Translation Retained Non- Total
Premium Reserve Earnings controlling Equity
Interest
GBP000 GBP000 GBP000 GBP000 GBP000
--------- ------------ ---------- -------------
Balance at 1 January
2015 71,590 (20,000) 5,134 15 56,739
Share capital adjustment - - - - -
--------- ------------ ---------- ------------- --------
Transactions with owners - - - - -
--------- ------------ ---------- ------------- --------
Loss for the year - - (670) - (670)
Foreign currency translation
differences for foreign
operations - 348 - - 348
--------- ------------ ---------- ------------- --------
Total comprehensive
income for the year - 348 (670) - (322)
--------- ------------ ---------- ------------- --------
Balance at 31 December
2015 71,590 (19,652) 4,464 15 56,417
========= ============ ========== ============= ========
Balance at 1 January
2014 71,590 (21,641) 5,269 13 55,231
Share capital adjustment - - - - -
Transactions with owners - - - - -
------- --------- ------ --- -------
Profit for the year - - (135) 2 (133)
Foreign currency translation
differences for foreign
operations - 1,641 - - 1,641
------- --------- ------ --- -------
Total comprehensive
income for the year - 1,641 (135) 2 1,508
------- --------- ------ --- -------
Balance at 31 December
2014 71,590 (20,000) 5,134 15 56,739
======= ========= ====== === =======
The notes form part of these consolidated financial
statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. CORPORATE INFORMATION
SKIL Ports & Logistics Limited (the "Company") was
incorporated in Guernsey under The Companies (Guernsey) Law 2008
with registered number 52321 on 24 August 2010. Its registered
office and principal place of business is 1st and 2nd Floors,
Elizabeth House, Les Ruettes Brayes, St Peter Port, Guernsey GY1
1EW. It was listed on the Alternative Investment Market ('AIM') of
the London Stock Exchange on 7 October 2010.
The consolidated financial statements of SKIL Ports &
Logistics Limited comprise the financial statements of the Company
and its subsidiaries (together referred to as the "Group"). The
consolidated financial statements have been prepared for the year
ended 31 December 2015, and are presented in UK Sterling (GBP).
The principal activities of the Group are to develop, own and
operate port and logistics facilities. As of 31 December 2015, the
Group had 26 (Twenty six) [prior year 21 (Twenty one)]
employees.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
The consolidated financial statements have been prepared on a
historical cost basis.
The consolidated financial statements of the Group have been
prepared in accordance with International Financial Reporting
Standards ("IFRS") as adopted by the European Union and also to
comply with The Companies (Guernsey) Law, 2008.
Going Concern
The financial statements have been prepared on a going concern
basis as the Group has adequate funds to enable it to exist as a
going concern for the foreseeable future. The Group has received
the requisite statutory approvals and has already commenced the
construction work at site. The Directors believes that they will
have sufficient equity, sanctioned credit facilities from lenders
and headroom in the capital structure for the build out of the
facility. The group closely monitors and manages its liquidity
risk. In assessing the Group's going concern status, the Directors
have taken account of the financial position of the Group,
anticipated future utilisation of available bank facilities, its
capital investment plans and forecast of gross operating margins as
and when the operations commence.
Based on the above, the Board of Directors believe that the
Group has adequate resources to continue in operational existence
for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the financial statements.
The Company is pleased to report that construction of the
project is progressing well and the build-out is expected to be
completed by Q4 2017. We expect the facility to become revenue
generating by end of 2016 / early 2017.
(b) Basis of Consolidation
The consolidated financial statements incorporate the results of
the Company and entities controlled by the Company (its
subsidiaries) up to 31 December 2015. Subsidiaries are all entities
over which the Group has the power to control the financial and
operating policies. The Group obtains and exercises control through
holding more than half of the voting rights. The financial
statements of the subsidiaries are prepared for the same period as
the Company using consistent accounting policies. The fiscal year
of KTLPL (Karanja Terminal & Logistics Private Limited) ends on
March 31 and its accounts are adjusted for the same period as the
Company for consolidation.
Amounts reported in the financial statements of subsidiaries
have been adjusted where necessary to ensure consistency with the
accounting policies adopted by the Group.
The results of subsidiaries acquired during the year are
included in the consolidated statement of comprehensive income from
the effective date of acquisition. Individual financial statements
of the subsidiaries are not presented.
Non-controlling interests
Non-controlling interests, presented as part of equity,
represent the portion of a subsidiary's profit or loss and net
assets that is not held by the Group. The Group attributes total
comprehensive income or loss of subsidiaries between the owners of
the parent and the non-controlling interests based on their
respective ownership interests.
(c) LIST OF SUBSIDIARIES
Details of the Group's subsidiaries which are consolidated into
the company's financial statements are as follows:
Subsidiary Immediate Country % Voting % Economic
Parent of Incorporation Rights Interest
-------------------- -------------------- ------------------- --------- -----------
Karanja Terminal SKIL Ports
& Logistics & Logistics
(Cyprus) Limited Limited Cyprus 100.00 100.00
Karanja Terminal
Karanja Terminal & Logistics
& Logistics (Cyprus)
Private Limited Limited India 99.71 99.71
(d) FOREIGN CURRENCY TRANSLATION
The consolidated financial statements are presented in UK
Sterling (GBP), which is the Company's functional currency. The
functional currency for all of the subsidiaries within the Group is
as detailed below:
Karanja Terminal & Logistics (Cyprus) Limited (KTLCL) - Euro
Karanja Terminal & Logistics Private Limited (KTLPL) - Indian Rupees
Foreign currency transactions are translated into the functional
currency of the respective Group entity, using the exchange rates
prevailing at the dates of the transactions (spot exchange rate).
Foreign exchange gains and losses resulting from the settlement of
such transactions and from the retranslation of monetary items
denominated in foreign currency at the year-end exchange rates are
recognised in the statement of comprehensive income.
Non-monetary items are not retranslated at year-end and are
measured at historical cost (translated using the exchange rates at
the transaction date).
In the Group's financial statements, all assets, liabilities and
transactions of Group entities with a functional currency other
than GBP are translated into GBP upon consolidation.
On consolidation, the assets and liabilities of foreign
operations are translated into GBP at the closing rate at the
reporting date. The income and expenses of foreign operations are
translated into GBP at the average exchange rates over the
reporting period. Foreign currency differences are recognised in
other comprehensive income in the translation reserve. When a
foreign operation is disposed of, in part or in full, the relevant
amount in the translation reserves shall be transferred to the
Statement of Comprehensive Income.
(e) REVENUE RECOGNITION
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Group and the revenue can be
reliably measured. The Group applies revenue recognition criteria
to each separately identifiable component. In particular:
Interest income:-
Interest income is reported on an accruals basis using the
effective interest method.
The Group is in process of constructing its initial project, the
creation of a modern and efficient port and logistics facility in
India. The Group has not yet commenced operations and hence,
currently does not have any revenue from operations of its core
business activity.
(f) Borrowing costs
Borrowing costs directly attributable to the construction of a
qualifying asset are capitalised during the period of time that is
necessary to complete and prepare the asset for its intended use.
Other borrowing costs are expensed in the period in which they are
incurred and reported in finance costs.
(g) Leases
Finance leases
The economic ownership of a leased asset is transferred to the
lessee if the lessee bears substantially all the risks and rewards
of ownership of the leased asset. Where the Group is a lessee in
this type of arrangement, the related asset is recognised at the
inception of the lease at the fair value of the leased asset or, if
lower, the present value of the lease payments plus incidental
payments, if any. A corresponding amount is recognised as a finance
lease liability. The corresponding finance lease liability is
reduced by lease payments net of finance charges. The interest
element of lease payments represents a constant proportion of the
outstanding capital balance and is charged to profit or loss, as
finance costs over the period of the lease.
Operating leases
All other leases are treated as operating leases. Where the
Group is a lessee, payments on operating lease agreements are
recognised as an expense on a straight-line basis over the lease
term. Associated costs, such as maintenance and insurance, are
expensed as incurred.
(h) INCOME TAX
Tax expense recognised in profit or loss comprises the sum of
deferred tax and current tax not recognised in other comprehensive
income or directly in equity. Current income tax assets and/or
liabilities comprise those obligations to, or claims from, fiscal
authorities relating to the current or prior reporting periods,
that are unpaid at the reporting date. Current tax is payable on
taxable profit, which differs from profit or loss in the financial
statements. Calculation of current tax is based on tax rates and
tax laws that have been enacted or substantively enacted by the end
of the reporting period.
Deferred tax
Deferred income taxes are calculated using the liability method
on temporary differences between the carrying amounts of assets and
liabilities and their tax bases. However, deferred tax is not
provided on the initial recognition of goodwill, or on the initial
recognition of an asset or liability unless the related transaction
is a business combination or affects tax or accounting profit.
Deferred tax on temporary differences associated with investments
in subsidiaries, associates and joint ventures is not provided if
reversal of these temporary differences can be controlled by the
Group and it is probable that reversal will not occur in the
foreseeable future.
Deferred tax assets and liabilities are calculated, without
discounting, at tax rates that are expected to apply to their
respective period of realisation, provided those rates are enacted
or substantively enacted by the end of the reporting period.
Deferred tax assets are recognised to the extent that it is
probable that the underlying tax loss or deductible temporary
difference will be utilised against future taxable income. This is
assessed based on the Group's forecast of future operating results,
adjusted for significant non-taxable income and expenses and
specific limits on the use of any unused tax loss or credit.
Deferred tax liabilities are always provided for in full.
Deferred tax assets and liabilities are offset only when the
Group has a right and intention to set off current tax assets and
liabilities from the same taxation authority.
Changes in deferred tax assets or liabilities are recognised as
a component of tax income or expense in profit or loss, except
where they relate to items that are recognised in other
comprehensive income (such as the revaluation of land) or directly
in equity, in which case the related deferred tax is also
recognised in other comprehensive income or equity,
respectively.
(i) FINANCIAL ASSETS
Financial assets are recognised when the Group becomes a party
to the contractual provisions of the financial instrument and are
measured initially at fair value adjusted by transaction costs.
Financial assets are derecognised when the contractual rights to
the cash flows from the financial asset expire, or when the
financial asset and all substantial risks and rewards are
transferred. A financial asset is derecognised when it is
extinguished, discharged, cancelled or expires.
Classification and subsequent measurement of financial
assets
For the purpose of subsequent measurement financial assets,
other than those designated and effective as hedging instruments,
are classified into the following categories upon initial
recognition:
-- loans and receivables
-- financial assets at fair value through profit or loss
(FVTPL)
-- held-to-maturity (HTM) investments
-- available-for-sale (AFS) financial assets
All financial assets except for those at FVTPL are reviewed for
impairment at least at each reporting date to identify whether
there is any objective evidence that a financial asset or a group
of financial assets is impaired.
All income and expenses relating to financial assets that are
recognised in profit or loss are presented within finance costs,
finance income or other financial items, except for impairment of
trade receivables which is presented within other expenses.
Loans and receivables
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active
market. After initial recognition, these are measured at amortised
cost using the effective interest method, less provision for
impairment. Discounting is omitted where the effect of discounting
is immaterial. The Group's cash and cash equivalents, trade and
most other receivables fall into this category of financial
instruments. Individually significant receivables are considered
for impairment when they are past due or when other objective
evidence is received that a specific counterparty will default.
Receivables that are not considered to be individually impaired are
reviewed for impairment in groups, which are determined by
reference to the industry and region of the counterparty and other
shared credit risk characteristics. The impairment loss estimate is
then based on recent historical counterparty default rates for each
identified group.
Financial assets at FVTPL
Financial assets at FVTPL include financial assets that are
either classified as held for trading or that meet certain
conditions and are designated at FVTPL upon initial recognition.
All derivative financial instruments fall into this category,
except for those designated and effective as hedging instruments,
for which the hedge accounting requirements apply. Assets in this
category are measured at fair value with gains or losses recognised
in profit or loss. The fair values of financial assets in this
category are determined by reference to active market transactions
or using a valuation technique where no active market exists.
HTM investments
HTM investments are non-derivative financial assets with fixed
or determinable payments and fixed maturity other than loans and
receivables. Investments are classified as HTM if the Group has the
intention and ability to hold them until maturity. HTM investments
are measured subsequently at amortised cost using the effective
interest method. If there is objective evidence that the investment
is impaired, determined by reference to external credit ratings,
the financial asset is measured at the present value of estimated
future cash flows. Any changes in the carrying amount of the
investment, including impairment losses, are recognised in profit
or loss.
AFS financial assets
AFS financial assets are non-derivative financial assets that
are either designated to this category or do not qualify for
inclusion in any of the other categories of financial assets. The
equity investment is measured at cost less any impairment charges,
as its fair value cannot currently be estimated reliably.
Impairment charges are recognised in profit or loss. All other AFS
financial assets are measured at fair value. Gains and losses are
recognised in other comprehensive income and reported within the
AFS reserve within equity, except for interest and dividend income,
impairment losses and foreign exchange differences on monetary
assets, which are recognised in profit or loss. When the asset is
disposed of or is determined to be impaired, the cumulative gain or
loss recognised in other comprehensive income is reclassified from
the equity reserve to profit or loss. Interest calculated using the
effective interest method and dividends are recognised in profit or
loss within finance income. Reversals of impairment losses for AFS
debt securities are recognised in profit or loss if the reversal
can be objectively related to an event occurring after the
impairment loss was recognised. For AFS equity investments
impairment reversals are not recognised in profit loss and any
subsequent increase in fair value is recognised in other
comprehensive income.
(j) FINANCIAL LIABILITIES
The Group's financial liabilities include trade and other
payables and borrowings. Financial liabilities are recognised when
the Group becomes a party to the contractual provisions of the
financial instrument and are measured initially at fair value
adjusted by transaction costs. Financial liabilities are measured
subsequently at amortised cost using the effective interest method.
A financial liability is derecognised when it is extinguished,
discharged, cancelled or expires.
(k) PROPERTY, PLANT AND EQUIPMENT
Items of property, plant and equipment are measured at cost less
accumulated depreciation and impairment losses.
The Group is in the process of constructing its initial project,
the creation of a modern and efficient port and logistics facility
in India. All the eligible expenditure incurred in respect of
terminal port under development is carried at historical cost under
Capital Work In Progress.
Cost includes expenditures that are directly attributable to the
acquisition of the asset. The cost of self- constructed assets
includes the cost of materials, direct labour and any other costs
directly attributable to bringing the asset to a working condition
for its intended use. Purchased software that is integral to the
functionality of the related equipment is capitalised as part of
that equipment.
Parts of the property, plant and equipment are accounted for as
separate items (major components) on the basis of nature of the
assets.
Depreciation is recognised in the Statement of Comprehensive
Income over the estimated useful lives of each part of an item of
property, plant and equipment. For items of property, plant and
equipment under construction, depreciation begins when the asset is
available for use, i.e. when it is in the condition necessary for
it to be capable of operating in the manner intended by management.
Thus as long as an item of property, plant and equipment is under
construction, it is not depreciated. Leasehold improvements are
amortised over the shorter of the lease term or their useful
lives.
Depreciation is calculated on a straight-line basis.
The estimated useful lives for the current year are as
Assets Estimated Life of
assets
Equipment 3-5 Years
Computers 2-3 Years
Furniture 5-7 Years
Vehicle 5-7 Years
Depreciation methods, useful lives and residual value are
reassessed at each reporting date.
Gains or losses arising on the disposal of property, plant and
equipment are determined as the difference between the disposal
proceeds and the carrying amount of the assets and are recognised
in profit or loss within other income or other expenses.
(l) TRADE RECEIVABLES AND PAYABLES
Trade receivables are financial assets categorised as loans and
receivables, measured initially at fair value and subsequently at
amortised cost using an effective interest rate method, less an
allowance for impairment. An allowance for impairment is made when
there is objective evidence that the Group will not be able to
collect the debts. Bad debts are written off when identified.
Trade payables are financial liabilities at amortised cost,
measured initially at fair value and subsequently at amortised cost
using an effective interest rate method.
(m) TRADE RECEIVABLES FOR ADVANCES
Advances paid to the EPC contractor and suppliers for build out
of the facility are categorised as trade receivables for advances.
These advances are measured initially at fair value and
subsequently at amortised cost using an effective interest rate
method, less an allowance for impairment. An allowance for
impairment is made when there is objective evidence that the Group
will not be able to recover these advances.
(n) CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash on hand and demand
deposits, together with other short-term, highly liquid investments
that are readily convertible into known amounts of cash and which
are subject to an insignificant risk of changes in value.
(o) SHARE CAPITAL AND RESERVES
Shares are 'no par value'. Share premium includes any premiums
received on issue of share capital. Any transaction costs
associated with the issuing of shares are deducted from share
premium, net of any related income tax benefits.
Foreign currency translation differences are included in the
translation reserve. Retained earnings include all current and
prior year retained profits.
(p) IMPAIRMENT OF FINANCIAL AND OTHER ASSETS
Property, Plant and Equipment
Internal and external sources of information are reviewed at the
end of the reporting period to identify indications that the
property, plant and equipment may be impaired or an impairment loss
previously recognised no longer exists or may have decreased.
Considering the current stage of the Group, it possesses very
limited equipment. Going-forward as the Group accumulates property,
plant and equipment, these will be stated at cost, net of
accumulated depreciation and/or impairment losses, if any. The cost
will include expenditures that are directly attributable to
property, plant and equipment such as employee cost, if recognition
criteria are met. Likewise, when a major inspection will be
performed, its costs will be recognised in the carrying amount of
the plant and equipment as a replacement if the recognition
criteria have been satisfied. All other repairs and maintenance
will be recognised in the Consolidated Statement of Comprehensive
Income as incurred. There is currently no impairment of property,
plant and equipment.
(q) STANDARDS, AMMENTS AND INTERPRETATIONS TO EXISTING STANDARDS
THAT ARE NOT
YET EFFECTIVE AND HAVE NOT BEEN ADOPTED EARLY BY THE GROUP
At the date of authorisation of these financial statements,
certain new standards, amendments and interpretations to existing
standards have been published by the IASB but are not yet
effective, and have not been adopted early by the Group. Management
anticipates that all of the relevant pronouncements will be adopted
in the Group's accounting policies for the first period beginning
after the effective date of the pronouncement. Certain other new
standards and interpretations have been issued but are not expected
to have a material impact on the Group's financial statements.
3. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS
The following are significant management judgments in applying
the accounting policies of the Group that have the most significant
effect on the financial statements.
Warrants
The Board of Directors are of the opinion that based on where
the group is currently with regards to the build out of its
facility that, the warrants granted to the Founder Shareholders and
to Cenkos Securities PLC (Nominated Adviser) will not be exercised
and hence are not dilutive.
The Board is not accounting for the warrants that were granted
at the time of IPO to the Founders Shareholders and to Cenkos
Securities PLC (Nominated Adviser) as they are significantly out of
the money. These warrants have lapsed during the year and there are
no warrants outstanding as on reporting date.
Functional Currency
The Company is listed on the London Stock Exchange's AIM market
("AIM"). The Company's subsidiaries are Karanja Terminal &
Logistics (Cyprus) Limited and Karanja Terminal & Logistics
Private Limited, in Cyprus and in India respectively. SPL which is
the managing entity of all the subsidiaries is managed and
controlled in Guernsey.
Since the company's investors are predominantly UK based and
invested in GBP, the Board of directors has decided to keep GBP as
the functional currency of the company. The Board at the time of
IPO decided not to hedge its exposure to INR as the project is
based in India and the capex, debt, operating expenses and revenue
are expected to be in INR.
Capitalisation of expenses related to port and logistics
facility
The Group is in the process of constructing its initial project;
the creation of a modern and efficient port and logistics facility
in India. All the expenditures directly attributable in respect of
the port and logistics facility under development are carried at
historical cost under Capital Work In Progress as the Board
believes that these expenses will generate probable future economic
benefits. These costs include borrowing cost, professional fees,
construction costs and other direct expenditure. After
capitalisation, management monitors whether the recognition
requirements continue to be met and whether there are any
indicators that capitalised costs may be impaired.
Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised is
based on an assessment of the probability of the Group's future
taxable income against which the deductible temporary differences
can be utilised. In addition, significant judgement is required in
assessing the impact of any legal or economic limits or
uncertainties in various tax jurisdictions.
Recognition of income tax liabilities
In light of a recent court judgement, there is a possibility
that the group will not be expected to pay Income tax in India on
interest income due to the availability of pre-operating losses.
Full liability has been made for income tax liabilities based on
the assumption that the interest income will be taxed in full.
However no accrual has been made for tax related interest or
penalties on the non-payment of Indian income tax.
4. SEGMENTAL REPORTING
The Group has only one operating and geographic segment, being
the project on hand in India and hence no separate segmental report
has been presented.
5. ADMINISTRATIVE EXPENSES
Year ended Year ended
31 Dec 31 Dec 14
15
GBP000 GBP000
Employee costs 290 176
Traveling expenses 280 307
Professional fees 621 393
Directors' fees 360 304
Communication charges 10 12
Operating lease rentals 175 170
Other borrowing costs 225 401
Foreign exchange gains/loss 1 1
Other administration costs 202 154
Depreciation 50 18
----------------- -----------------
2,214 1,936
================= =================
6. FINANCE INCOME
Year ended Year ended
31 Dec 31 Dec
15 14
GBP000 GBP000
Interest on demand deposits 2,314 2,624
Interest on bank deposits 38 41
----------- -----------
2,352 2,665
=========== ===========
7. INCOME TAX
The major components of tax expense and the reconciliation of
the expected tax expense and the reported tax expense in the
Statement of Comprehensive Income are as follows:
Year ended Year ended
31 Dec 15 31 Dec 14
GBP000 GBP000
Profit Before Tax 138 729
Applicable tax rate
in India* 34.45% 32.45%
----------- -----------
Expected tax expense 47 236
Adjustment for non-deductible
losses of SPL & Cyprus
entity against income
from India 295 220
Adjustment for non-deductible
expenses 466 406
Actual tax expense 808 862
=========== ===========
*Considering that the Group's operations are presently based in
India, the effective tax rate of the Group of 34.45% (prior year
32.45%) has been computed based on the current tax rates prevailing
in India. In India, incomes earned from all sources (including
interest income) are taxable at the prevailing tax rate unless
exempted. However, administrative expenses are treated as
non-deductible expenses until commencement of operations. The
current income tax expense of GBP0.80 million (prior year GBP0.86
million) represents tax on profit/interest arising in India.
The Company is incorporated in Guernsey under The Companies
(Guernsey) Law 2008, as amended. The Guernsey tax rate for
companies is 0%. The rate of withholding tax on dividend payments
to non-residents by companies within the 0% corporate income tax
regime is also 0%. Accordingly, the Company will have no liability
to Guernsey income tax on its income and there will be no
requirement to deduct withholding tax from payments of dividends to
non-resident shareholders. There is no corporation tax payable in
Guernsey.
In Cyprus, the tax rate for companies is 12.5 % with effect from
1 January 2014.
8. AUDITORS' REMUNERATION
The following are the details of fees paid to the auditors,
Grant Thornton UK LLP and Indian auditors, in various capacities
for the year:
Year ended Year ended
31 Dec 31 Dec
15 14
GBP000 GBP000
Audit Fees
Interim 10 9
Annual 65 55
Subsidiary Audit Fees 3 12
Prior Year Overruns - 7
Site Visit Fees 8 -
86 83
=========== ===========
9. EARNINGS PER SHARE
Both basic and diluted earnings per share for the year ended 31
December 2015 have been calculated using the loss attributable to
equity holders of the Group of GBP0.67 million {prior year loss of
GBP0.13 million}.
Year ended Year ended
31 Dec 15 31 Dec
14
Loss attributable to GBP(670,000) GBP(135,000)
equity holders of the
parent
Weighted average number
of shares used in basic
& diluted earnings per
share 44,000,000 44,000,000
EARNINGS PER SHARE Pence Pence
Basic & Diluted earnings
per share (0.015) (0.003)
As mentioned under note 3, the warrants are not dilutive. There
are no dilutive potential ordinary shares. There have been no other
transactions involving ordinary shares or potential ordinary shares
between the reporting date and the date of completion of these
financial statements.
10. PROPERTY, PLANT AND EQUIPMENT
Details of the Group's property, plant and equipment and their
carrying amounts are as follows:
Capital
Computers Office Furniture Vehicles Work In Total
Equipment Progress
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Gross carrying
amount
Balance 1 Jan
2015 14 20 14 44 15,461 15,553
Net Exchange
Difference - - - 1 100 101
Additions 8 6 7 192 13,009 13,222
--------------- ---------------- ------------- ----------------- --------------- ------------------ ------------
Balance 31 Dec
2015 22 26 21 237 28,570 28,876
--------------- ---------------- ------------- ----------------- --------------- ------------------ ------------
Depreciation
Balance 1 Jan
2015 (10) (8) (4) (23) - (45)
Net Exchange
Difference (1) - - - - (1)
Charge for the
year (3) (3) (3) (41) - (50)
Balance 31 Dec
2015 (14) (11) (7) (64) - (96)
--------------- ---------------- ------------- ----------------- --------------- ------------------ ------------
Carrying amount
31 Dec 2015 8 15 14 173 28,570 28,780
=============== ================ ============= ================= =============== ================== ============
Computers Office Furniture Vehicles Capital
Equipment Work In
Progress Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Gross carrying
amount
Balance 1 Jan
2014 10 16 8 44 6,412 6,490
Net Exchange
Difference - 1 - - 201 202
Additions 4 3 6 - 8,848 8,861
----------------- ---------- ----------- --------------- --------- ---------- --------
Balance 31 Dec
2014 14 20 14 44 15,461 15,553
----------------- ---------- ----------- --------------- --------- ---------- --------
Depreciation
Balance 1 Jan
2014 (7) (5) (3) (12) - (27)
Net Exchange - - - - - -
Difference
Charge for the
year (3) (3) (1) (11) - (18)
----------------- ---------- ----------- --------------- --------- ---------- --------
Balance 31 Dec
2014 (10) (8) (4) (23) - (45)
----------------- ---------- ----------- --------------- --------- ---------- --------
Carrying amount
31 Dec 2014 4 12 10 21 15,461 15,508
================= ========== =========== =============== ========= ========== ========
The net exchange difference on the Group's property, plant and
equipment's carrying amount is a loss of GBP0.10 million (prior
year gain of GBP0.20 million). The net exchange difference on the
Group's property, plant and equipment carrying amount is on the
account of the foreign exchange movement.
a) Net Book Value of assets held under Finance Lease
KTLPL's vehicles are held under finance lease arrangements. The
Net Book Value of assets held under finance lease arrangements are
as follows:
Year ended Year ended
31 Dec 31 Dec
15 14
GBP000 GBP000
Vehicles 173 21
----------- -----------
173 21
=========== ===========
The Port facility being developed in India has been hypothecated
by the Indian subsidiary as security for the bank borrowings
[Borrowing limit sanctioned INR 480 crore (GBP48.91 million)] for
part financing the build out of the facility.
The borrowing cost in respect of the bank borrowing for
financing the build out of facility are capitalised under Capital
work in progress. During the year the company has capitalised
borrowing cost of GBP1.70 million (prior year GBP0.76 million).
The Indian subsidiary has a contractual commitment of INR 800.74
crore (GBP81.60 million) towards construction of the port facility,
for which the expected completion date is second half of 2017.
There were no other material contractual commitments.
11. TRADE AND OTHER RECEIVABLES
Year ended Year ended
31 Dec 31 Dec
15 14
GBP000 GBP000
Deposits 1,749 229
Advances 13,918 16,008
Debtors
- Related Party 142 60
- Prepayment 23 23
15,832 16,320
=========== ===========
Advances include payment to EPC contractor of GBP13.25 million
(prior year GBP14.54 million) towards mobilisation advances and
quarry development. These advances will be recovered as a deduction
from the invoices being raised by the contractor over the contract
period.
12. CASH AND CASH EQUIVALENTS
Year ended
Year ended 31 Dec
31 Dec 15 14
GBP000 GBP000
Cash at bank and
in hand 1,503 3,339
Deposits 37,066 37,702
----------- -----------
38,569 41,041
=========== ===========
Cash at bank earns interest at floating rates based on bank
deposit rates. Short-term deposits are callable on demand depending
on the immediate cash requirements of the Group, and earn fixed
interest at the respective short-term deposit rates. The fair value
of cash and short-term deposits is GBP38.56 million (prior year
GBP41.04 million).
13. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
Risk Management
The Group's activities expose it to a variety of financial
risks: market risk (including currency risk and interest rate
risk), credit risk and liquidity risk. Risk management is carried
out by the Board of Directors.
(a) Market Risk
(i) Translation risk
Foreign currency risk is the risk that the fair value or future
cash flows of a financial instrument will fluctuate because of
changes in market foreign exchange rates. The Company's
presentation currency is the UK Sterling (GBP). The functional
currency of SPL is GBP. The functional currency of its subsidiary
Karanja Terminal & Logistics Private Limited (KTLPL) is INR and
the functional currency of Karanja Terminal & Logistics
(Cyprus) Limited is the Euro.
The exchange difference arising due to foreign currency exchange
rate variances on translating a foreign operation into the
presentation currency results in a translation risk. The exchange
differences arising from the translation of foreign operation into
the presentation currency are recognised in other comprehensive
income. There are no flows between the parent and KTLPL and
therefore, there are no other currency risks or exposures at the
reporting date. As stated under note 3 - Functional currency, the
board has decided not to hedge its exposure to INR as the project
is based in India and the cash balance, capex, debt, operating
expenses and revenue are all expected to be in INR and hence no
foreign exchange risk exists.
Currency risk exposure arises from financial instruments that
are denominated in a currency that is not the functional currency
of the entity in which they are recognised. Therefore as the cash
balance is denominated in INR and the functional currency of the
entity holding the cash is INR, no currency risk exposure
arises.
The Group's exposure to the risk of changes in foreign exchange
rates relates primarily to the cash and cash equivalents available
with the Indian entity of INR 3,647 million (GBP37.16 million) as
on reporting date [prior period INR 3,835 million (GBP38.83
million)]. In computing the below sensitivity analysis, the
management has assumed the following % movement between foreign
currency (INR) and the underlying functional currency (GBP):
Functional Currency 31 Dec 2015 31 Dec 2014
(GBP)
INR +- 10% +- 10%
The following table details the Group's sensitivity to
appreciation or depreciation in functional currency vis-à-vis the
currency in which the foreign currency cash and cash equivalents
are denominated:
Functional GBP GBP
currency (depreciation (appreciation
by 10%) by 10%)
GBP000 GBP000
31 December
2015 3,716 (3,716)
31 December
2014 3,883 (3,883)
If the functional currency (GBP) had weakened with respect to
foreign currency (INR) by the percentages mentioned above, for year
ended 31 December 2015 then the effect will be change in profit and
equity for the year by GBP3.71 million (prior period GBP3.88
million). If the functional currency had strengthened with respect
to the various currencies, there would be an equal and opposite
impact on profit and equity for each year. This exchange difference
arising due to foreign currency exchange rate variances on
translating a foreign operation into the presentation currency
results in a translation risk.
(ii) Interest rate risk
Interest rate risk is the risk that the future cash flows of a
financial instrument will fluctuate because of changes in market
interest rates. The Group's exposure to the risk of changes in
market interest rates relates primarily to the Group's long-term
debt obligations with floating interest rates.
KTLPL has successfully tied-up rupee term loan of INR 480 crore
(GBP48.91 million) for part financing the build out of its
facility. The company has commenced the drawdown of its sanctioned
bank borrowing as of the reporting date. The rate of interest on
the bank borrowing will be a floating rate linked to the bank base
rate with an additional spread of 355 basis points. The present
composite rate of interest is 13.50%.
The base rate set by the bank may be changed periodically as per
the discretion of the bank in line with Reserve Bank of India (RBI)
guidelines. Based on the current economic outlook and RBI Guidance,
management expects the Indian economy to enter a lower interest
rate regime as moderating inflation will allow the RBI and thus the
banks to lower its base rate in the coming quarters.
Interest rate sensitivity
At 31 December 2015, the Group is exposed to changes in market
interest rates through bank borrowings at variable interest rates.
The exposure to interest rates for the Group's money market funds
is considered immaterial.
The following table illustrates the sensitivity of profit to a
reasonably possible change in interest rates of +/- 1% (2014: +/-
1%). These changes are considered to be reasonably possible based
on observation of current market conditions. The calculations are
based on a change in the average market interest rate for each
period, and the financial instruments held at each reporting date
that are sensitive to changes in interest rates. All other
variables are held constant.
Year Profit for Equity, net
the Year of tax
GBP000 GBP000
+1% -1% +1% -1%
31 December
2025 (15) 15 (10) 10
31 December
2024 (91) 91 (60) 60
31 December
2023 (174) 174 (114) 114
31 December
2022 (254) 254 (167) 167
31 December
2021 (333) 333 (218) 218
31 December
2020 (402) 402 (263) 263
31 December
2019 (456) 456 (299) 299
31 December
2018 (487) 487 (319) 319
31 December
2017 (486) 486 (318) 318
31 December
2016 (340) 340 (223) 223
(b) Credit risk
Credit risk is the risk that a counterparty fails to discharge
an obligation to the Group. The Group's maximum exposure (GBP37.06
million) to credit risk is limited to the carrying amount of
financial assets recognised at the reporting date. The Group's
policy is to deal only with creditworthy counterparties. The Group
has no significant concentrations of credit risk.
The Group does not concentrate any of its deposits in one bank
or a non-banking finance company (NBFC). This is seen as being
prudent. Credit risk is managed by the management having conducted
its own due diligence. The balances held with NBFC's and banks are
on a short term basis. Management reviews quarterly NAV information
sent by NBFC's and monitors bank counter-party risk on an on-going
basis.
(c) Liquidity risk
Liquidity risk is the risk that the Group might be unable to
meet its financial obligations. Prudent liquidity risk management
implies maintaining sufficient cash and marketable securities, the
availability of funding through an adequate amount of committed
credit facilities. To date all investments have been funded by cash
from the IPO. KTLPL has tied-up rupee term loan of INR 480 crore
(GBP48.91 million) for financing the build out of its facility. The
company has started utilisation of bank borrowing.
The Group's objective is to maintain cash and demand deposits to
meet its liquidity requirements for 30-day periods at a minimum.
This objective was met for the reporting periods. Funding for build
out of the port facility is secured by sufficient equity,
sanctioned credit facilities from lenders and the ability to raise
additional funds due to headroom in the capital structure.
The Group manages its liquidity needs by monitoring scheduled
contractual payments for build out of the port facility as well as
forecast cash inflows and outflows due in day-to-day business.
Liquidity needs are monitored and reviewed by the management on a
regular basis. Net cash requirements are compared to available
borrowing facilities in order to determine headroom or any
shortfalls. This analysis shows that available borrowing facilities
are expected to be sufficient over the lookout period.
As at 31 December 2015, the Group's non-derivative financial
liabilities have contractual maturities (and interest payments) as
summarised below:
Principal payments Interest payments
Payment falling INR in INR in GBP000
due Crore GBP000 Crore
Within 1 year - - 45 4,589
1 to 5 year's 109 11,127 243 24,713
After 5 year's 371 37,784 115 11,704
Total 480 48,911 403 41,006
========== ========= ========= =========
The present composite rate of interest of 13.50% and closing
exchange rate has been considered for the above analysis.
In addition, the Company's liquidity management policy involves
considering the level of liquid assets necessary to meet the
funding requirement; monitoring balance sheet liquidity ratio
against internal requirements and maintaining debt financing plans.
As a part of monitoring balance sheet liquidity ratio, management
monitors the debt to equity ratio and has specified optimal level
for debt to equity ratio of 1.
Financial Instruments
Fair Values
Set out below is a comparison by category of carrying amounts
and fair values of the entire Group's financial instruments that
are carried in the financial statements.
Loans and Receivables
(Carried at amortised cost)
Year ended Year ended
31 Dec 31 Dec
Note 15 14
GBP000 GBP000
Financial Assets
Cash and Equivalents 12 38,569 41,041
Trade and Other
Receivables 11 15,832 16,320
----------- -----------
54,401 57,361
=========== ===========
Financial Liability
Borrowings 15 17,228 9,421
Trade and other
payables 17 2,894 985
----------- -----------
20,122 10,406
=========== ===========
The fair value of the Company's financial assets and financial
liabilities significantly approximate their carrying amount as at
the reporting date.
14. EQUITY
14.1 Issued Capital
The share capital of SPL consists only of fully paid ordinary
shares of no par value. The total number of shares issued and fully
paid up of the company as on each reporting date is summarised as
follows:
Year ended Year ended
Particulars 31 Dec 15 31 Dec 14
Shares issues and fully
paid:
Beginning of the year 44,000,000 44,000,000
Closing number of shares 44,000,000 44,000,000
============= =============
The share premium amount to GBP71.59 million (prior year
GBP71.59 million) after reduction of share issue costs. Holders of
the ordinary shares are entitled to receive dividends and other
distributions and to attend and vote at any general meeting.
14.2 Other Components of Equity
Retained Earnings
Retained earnings of GBP4.46 million (prior year GBP5.13
million) include all current year retained profits.
Translation Reserve
The translation reserve of GBP19.65 million (prior year GBP20.00
million) is on account of exchange differences relating to the
translation of the net assets of the Group's foreign operations
which relate to subsidiaries, from their functional currency into
the Group's presentational currency being GBP.
15. BORROWINGS
Borrowings consist of the following:
Year ended Year ended
31 Dec 15 31 Dec 14
GBP000 GBP000
Current
Vehicle loan 27 9
----------- -----------
27 9
=========== ===========
Non-Current
Bank loan 17,106 9,403
Vehicle loan 95 9
17,201 9,412
=========== ===========
Borrowing
Karanja Terminal & Logistics Private Limited (KTLPL), the
Indian subsidiary has in place rupee term loan of INR 480 crore
(GBP48.91 million) for part financing the port facility. The rupee
term loan has been sanctioned by 4 Indian public sector banks and
the loan agreement was executed on 28(th) February, 2014. The
tenure of the loan is for 10 years with repayment beginning at the
end of the fifth year. The repayment schedule is as follows:
Repayment amount
Payment falling GBP000
due INR in Crore
Within 1 year - -
1 to 5 year's 109 11,127
After 5 year's 371 37,784
Total 480 48,911
============= =======
The rate of interest will be a floating rate linked to the
Canara bank base rate with an additional spread of 355 basis
points. The present composite rate of interest is 13.50%. The
borrowings are secured by the hypothecation of the port facility
and pledge of its shares. The carrying amount of the bank borrowing
is considered to be a reasonable approximation of the fair
value.
KTLPL has utilised the rupee term loan facility of INR 167.87
crore (GBP17.10 million) {prior year INR 92.87 crore (GBP9.40
million)} as of the reporting date.
16. current tax liabilities
Current tax liabilities consist of the following:
Year ended Year ended
31 Dec 31 Dec
15 14
GBP000 GBP000
Duties & taxes 607 528
Provision for Income Tax 6,035 5,196
----------- -----------
Current tax liabilities 6,642 5,724
=========== ===========
The carrying amounts and the movements in the Provision for
Income Tax account are as follows:
GBP000
Carrying amount 1 January
2015 5,196
Additional Provisions 839
Carrying amount 31 December
2015 6,035
=======
The Company recognises liabilities for anticipated tax issues
based on estimates of whether additional taxes will be due. Where
the final outcome of assessment by the Income Tax department on
these matters is different from the amounts that were initially
recorded, such differences will impact the income tax provisions in
the period in which such determination is made. The company
discharges the tax liability on the basis of income tax
assessment.
17. TRADE AND OTHER PAYABLES
Trade and other payables consist of the following:
Year ended Year ended
31 Dec 15 31 Dec 14
GBP000 GBP000
Current
Sundry creditor 2,767 877
Other payables 127 108
2,894 985
=========== ===========
18. RELATED PARTY TRANSACTIONS
The consolidated financial statements include the financial of
the Company and the subsidiaries listed in the following table:
Country Ownership Type of
Name of Incorporation Field Activity Interest share Held
----------------------- ------------------ ------------------- ---------- ------------
Cyprus Holding Company 100% Ordinary
HELD BY The Company
(SPL):
Karanja Terminal
& Logistics (Cyprus)
Limited
HELD BY Karanja
Terminal & Logistics
(Cyprus) Limited:
Karanja Terminal Operating
& Logistics Pvt. Company -Terminal
Ltd India Project 99.71% Ordinary
The Group has the following related parties with whom it has
entered into transactions with during the year.
a) Shareholders having significant influence
The following shareholders of the Group have had a significant
influence during the year under review:
-- SKIL Global Ports & Logistics Limited, which is 100%
owned by Mr. Nikhil Gandhi, holds 28.91% of issued share capital of
SKIL Ports & Logistics Limited at the year end.
-- Pavan Bakhshi holds 2% of issued share capital of SKIL Ports
& Logistics Limited at the year end.
b) Key Managerial Personnel of the parent
Non-executive Directors
- Mr. Peter Anthony Jones
- Mr. James Stocks Sutcliffe
- Mr. Sunil Tandon (resigned on 7 January 2016)
Chief Executive Officer and Key Managers
- Mr. Pavan Bakhshi (Managing Director)
c) Key Managerial Personnel of the subsidiaries
Directors of KTLPL (India)
- Mr. Pavan Bakhshi
- Mr. Jay Mehta
- Mr. Jigar Shah
- Mr. Nikhil Gandhi
(Mr. Nikhil Gandhi is Chairman)
Directors of KTLCL (Cyprus)
- Mr. Pavan Bakhshi
- Ms. Andria Andreou
- Ms. Olga Georgiades
d) Other related party disclosure
Entities that are controlled, jointly controlled or
significantly influenced by, or for which significant voting power
in such entity resides with, directly or indirectly, any individual
or close family member of such individual referred above.
- SKIL Infrastructure Limited
- JPT Securities Limited
- KLG Capital Services Limited
- Grevek Investment & Finance Private Limited
- Carey Commercial (Cyprus) Limited
- Athos Hq Group Bus. Ser. Cy Ltd
e) Transaction with related parties
The following transactions took place between the Group and
related parties during the year ended 31 December 2015:
Nature of Year ended Year ended
transaction 31 Dec 31 Dec
15 14
GBP000 GBP000
Athos Hq Group Bus. Ser. Cy Administrative
Ltd fees 10 5
Administrative
Carey Commercial (Cyprus) Ltd fees - 10
Grevek Investment & Finance Interest 87 -
P. Ltd income
JPT Securities Limited Interest 2 -
income
KLG Capital Services Limited Interest 3 -
income
----------- -----------
102 15
=========== ===========
The following table provides the total amount outstanding with
related parties as at year ended 31 December 2015:
Transactions with shareholder having significant influence
SKIL Global Ports & Logistics Limited - Receivable
amount:
Nature of Year ended Year ended
transaction 31 Dec 15 31 Dec 14
GBP000 GBP000
Debtors Advances 72 60
----------- -----------
72 60
=========== ===========
Transactions with subsidiary
None
Transactions with Key Managerial Personnel of the parent
Nikhil Gandhi - Receivable amount:
Nature of Year ended Year ended
transaction 31 Dec 15 31 Dec 14
GBP000 GBP000
Debtors Advances 70 -
----------- -----------
70 -
=========== ===========
See Key Managerial Personnel Compensation details as provided
below
Transactions with Key Managerial Personnel of the
subsidiaries
See Key Managerial Personnel Compensation details as provided
below
Advisory services fee
None
Compensation to Key Managerial Personnel of the parent
Fees paid to persons or entities considered to be Key Managerial
Personnel of the Group include
Year ended Year ended
31 Dec 31 Dec 14
15 GBP000
GBP000
Directors' fees
- Peter Jones 45 45
- James Sutcliffe 40 40
- Sunil Tandon 46 -
----------- -----------
131 85
Short-term employee
benefits
- Pavan Bakhshi 175 175
----------- -----------
175 175
Total compensation
paid to Key Managerial
Personnel 306 260
=========== ===========
SKIL Global Ports & Logistics Limited (controlled by Mr.
Nikhil Gandhi, a director) and Mr. Pavan Bakhshi, a director
(together the "Founder Shareholders"), have been granted warrants
by the Company to subscribe, for 4,400,000 ordinary shares at
nominal consideration at the time of (1) the Multi-purpose Terminal
and Logistics Park becoming fully operational and (2) the Group
generating annualised consolidated revenues of at least GBP48
million in any consecutive three month period ending on or prior to
31 December 2015. As stated above, given that this date has passed,
the warrants have lapsed and hence no charge is recognised in the
current year Statement of Comprehensive Income.
As per the contract agreement entered into with the nominated
adviser (Cenkos Securities PLC), they were granted warrants to
subscribe for 220,000 ordinary shares exercisable at GBP2.50 per
share at any time within five years ending October 7, 2015. As
stated under note 3, given that this date has passed, the warrants
have lapsed and hence no charge is recognised in the current year
Statement of Comprehensive Income.
Compensation to Key Managerial Personnel of the subsidiaries
Year ended Year ended
31 Dec 31 Dec
15 14
GBP000 GBP000
Directors' fees
KTLPL - India 53 44
KTLCL - Cyprus 3 3
----------- -----------
56 47
=========== ===========
Corporate Deposits
As at 31 December 2015, the Group had GBP0.98 million (prior
year GBP1.11 million) as demand deposits with related parties.
Year ended Year ended
31 Dec 15 31 Dec 14
GBP000 GBP000
Grevek Investment &
Finance Pvt Ltd 986 840
KLG Capital Services
Ltd - 118
JPT Securities Limited - 159
986 1,117
=========== ===========
Terms and conditions of transactions with related parties
The demand deposits are unsecured, callable on demand, carrying
interest at 5% per annum and settlement occurs in cash. For the
year ended 31 December 2015, the Company has not recorded any
impairment of receivables relating to amounts owed by related
parties (31 December 2014: GBP NIL). This assessment is undertaken
each financial year through examining the financial position of the
related party and the market in which the related party
operates.
Ultimate controlling party
The Directors do not consider there to be an ultimate
controlling party.
19. CASH FLOW ADJUSTMENTS AND CHANGES IN WORKING CAPITAL
The following non-cash flow adjustments and adjustments for
changes in working capital have been made to profit before tax to
arrive at operating cash flow:
Year ended Year ended
31 Dec 31 Dec
15 14
GBP000 GBP000
Non cash flow adjustments
Depreciation 50 18
Finance Income (2,352) (2,665)
Tax Expenses (808) (862)
Change In Current
Tax Liabilities 918 1,208
----------- -----------
(2,192) (2,301)
----------- -----------
Net changes in working
capital
Change in trade &
other payables 1,890 (1,848)
Change in borrowings 19 101
Change in trade &
other receivables 488 (6,047)
----------- -----------
2,397 (7,794)
----------- -----------
20. CAPITAL MANAGEMENT POLICIES AND PROCEDURE
The Group's capital management objectives are:
-- To ensure the Group's ability to continue as a going
concern
-- To provide an adequate return to shareholders
By development of the port and logistics facility and effective
& efficient operation of the business commensurate with the
level of risk.
During the year, the group has commenced the construction of the
port facility. The group has also secured sanction for bank
borrowing. It has commenced the drawdown of the credit
facility.
With debt and equity funding fully tied-up, the EPC contract
being a fixed-price contract and given the group's substantial
project execution experience, the Group is protected against any
significant cost overruns. Additionally, contingencies have been
factored as 5% of the project cost. The Group believes that it is
adequately capitalised and will pursue a conservative capital
structure during the development and operational phase.
The Board has no immediate plans for paying a dividend and as
such would only consider a dividend or share buy-back at a time
where the project has significant free cash flow. The capital that
was raised at the time of the IPO has been earmarked for the build
out of the project and for the general working capital.
Given that the project has gone into the construction phase the
Group has started redeeming its deposit from NBFCs. The cash
management policy is regularly reviewed at its board meetings.
Capital
The Company's capital includes share premium (reduced by share
issue costs), retained earnings and translation reserve which are
reflected on the face of the statement on financial position and in
Note 14.
21. Finance Lease
KTLPLs vehicles are held under finance lease arrangements. As of
31 December 2015, the net carrying amount of the vehicles is GBP
0.17 million (2014: GBP 0.02 million).
Finance lease liabilities are secured by the related assets held
under finance leases. Future minimum finance lease payments at 31
December were as follows:
Minimum lease payments due
within 1 to 5 after Total
1 year year 5
GBP000 GBP000 year GBP000
GBP000
31 December
2015
Lease payments 38 112 - 150
Finance charges (11) (17) - (28)
-------- -------- -------- --------
Net present
values 27 95 - 122
======== ======== ======== ========
31 December
2014
Lease payments 11 10 - 21
Finance charges (2) (1) - (3)
-------- -------- -------- --------
Net present
values 9 9 - 18
======== ======== ======== ========
22. Operating Lease
The Group has entered into a 30 years lease agreement with the
Maharashtra Maritime Board for the development of a port and
logistics facility in India. The operating lease payments are
capitalised at historical cost under Capital Work in Progress in
the consolidated financial statement on a straight-line basis until
the completion of construction.
The future minimum lease payments are as follows:
Payments falling due Future minimum Future minimum
lease lease
payments outstanding payments outstanding
on 31 Dec 2015 on 31 Dec 2014
GBP000 GBP000
Within 1 year 174 173
1 to 5 year's 696 692
After 5 year's 3,238 3,390
---------------------- ----------------------
Total 4,108 4,255
====================== ======================
The annual lease rent is payable by KTLPL in INR. The exchange
rate on the reporting date has been considered for deriving the GBP
amount for future minimum lease payment.
23. CONTINGENT LIABILITIES AND COMMITMENTS
The group has no (2014: GBP NIL) contingent liabilities as at 31
December 2015.
24. EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE
There are no notable events have occurred subsequent to the
balance sheet date.
25. AUTHORISATION OF FINANCIALS STATEMENTS
The consolidated financial statements for the Year ended 31
December 2015 were approved and authorised for issue by the board
of directors on 16 June 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAFKSFSDKEAF
(END) Dow Jones Newswires
June 16, 2016 02:00 ET (06:00 GMT)
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