TIDMTGR
RNS Number : 2002M
Tirupati Graphite PLC
17 September 2021
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this information is considered to
be in the public domain.
17 September 2021
Tirupati Graphite plc ('Tirupati' or the 'Company')
Final Results
Tirupati Graphite plc, the fully integrated, revenue generating,
specialist graphite producer and graphene and advanced materials
developer, is pleased to announce its Final Results for the year
ended 31 March 2021. A copy of the Report and Accounts will be
available shortly on the Company's website,
www.tirupatigraphite.co.uk.
HIGHLIGHTS - DURING & POST PERIOD
Madagascar operations further strengthen value building from
primary flake graphite projects
-- Sahamamy 3,000 tpa plant achieves 57% operating margins, up from 48% in the previous year.
-- Vatomina 9,000 tpa plant commissioned in September 2021,
production now ramping up to full capacity.
-- Construction activities for second 18,000 tpa module at
Sahamamy underway which will uplift production capacity to 30,000
tpa by Q1/Q2 2022, 10x from the previous year that is set to grow
to 84,000 tpa by 2024.
-- Buyers for the Company's high-quality flake graphite from
Madagascar including large corporates from the US, EU and Asia are
lined up with market development activities ongoing in advance of
Company's expanding production.
-- Company's transition to renewable energy to substantially
meet its energy needs commenced with development of its first hydro
power project at Sahamamy, affirming its commitment to green energy
and sustainability.
-- Company well positioned to benefit from post pandemic
recovery and capture economies of scale as it increases production
capacities from its Madagascan projects.
Financial Highlights
-- Revenues of GBP1,123,426 and Operating Profits of GBP635,342,
representing 57% operating margins.
-- Negative EBITDA marginally higher at GBP(896,239) compared to
GBP(684,872) in 2020, despite extensive corporate and business
development and accelerated project development activities post
admission.
-- Successfully raised gross proceeds of GBP6 million at 45p per
share at IPO in December 2020 and a further GBP10 million at 90p
per share in April 2021. The Company is now fully funded through to
end of 2022 for its stage 1 developments across its portfolio of
business units (see RNS dated 16 April 2021).
-- Emphasis remains on controlling CAPEX and OPEX to maintain
its demonstrated low-cost advantage, generating early revenues to
minimise pre-production investments and maximising margins from
operations.
Speciality graphite and graphene & technology divisions
under TSG continue to evolve
-- 1,200 tpa plant at the Patalganga project continued to
develop and deliver niche expandable graphite products for a
variety of applications, continuing to create new markets and
buyers ahead of the large scale speciality graphite project coming
into production in 2H 2022.
-- Spheroidization technology evolved in collaboration with a
German equipment manufacturer with yields of up to 68% as compared
to average c.35% using existing Chinese manufacturing
technologies.
-- Company's non-energy intensive, zero hydro-fluoric acid
purification technology for its high-purity graphite continues to
receive significant interest from buyers for its green and
sustainability advantages.
-- First stage development at Tirupati Graphene and Mintech
Research Centre ("TGMRC") the Company's state-of-the-art R&D
and technology centre commissioned enabling graphene manufacturing,
advanced materials developments and mineral processing technology
consultancy activities to advance and come into first revenues.
-- TGMRC developed ground-breaking graphene-aluminium composite
("Al-Gr Composite") and is working with a suite of companies
including a FTSE 100 company engaged in the manufacturing of
conductors for advanced applications including aerospace, green
mobility, sub-sea transmission etc.
Highly favourable current and long-term demand profile across
business units
-- UBS suggests a 700% growth in demand for flake graphite to
5.9 million tonnes per year by 2030.
-- Graphite designated as a critical raw material by US and EU,
making it a key contributor to the green energy transition and
electrification of mobility.
-- Diverse applications for graphite including thermal
management in electronics, fire safety, metal manufacturing and
forming, fuel cells, polymers, composites and in other advanced
materials.
-- Graphene is leading the development of 2D and advanced
materials and set to fuel the upcoming Advanced Materials
Revolution.
Continued corporate evolution focussed on the Environment,
Sustainability and Governance
-- Admitted to the official list of quoted companies on the main
market of the LSE and accredited with the Green Economy Mark for
companies who contribute to climate change mitigation and
adaptation, waste and pollution reduction, and the circular
economy.
-- Active member and regular contributor of the Quoted Companies
Alliance; Critical Materials Association; and The Graphene
Council.
-- The Company has voluntarily adopted the QCA Code for
Corporate Governance as far it is practicable given its size and
stage and Corporate Governance Report is included in the Annual
Report.
-- The Company has also voluntarily adopted the GRI standards
for ESG reporting and will be releasing its maiden Sustainability
Report adhering to the GRI standards in the coming weeks.
-- Kept shareholders and markets informed of significant
developments of the Company through regular RNS's, road shows,
investor meetings, conferences and other investor networking
platforms
Raised profile as a sustainable, high-quality, technologically
advanced ex-China source for flake graphite to global customers
-- Reach registration accorded for Company's suite of expandable graphite products in the EU
-- Marketing MOU signed with Hanwa Co. LTD., a leading
Japan-based global trading and investment company and one of the
larger traders of battery chemicals and steel products in the Asian
region
-- Status as a sustainable supplier of flake graphite continues
to develop as buyers start to recognise the Company's proprietary
environmentally friendly processes compared to peers, provided
critical advantage and access to new markets for its suite of
primary and specialty graphite products
Focused on enhancing the Company's global resource base and
diversifying supply of high-quality graphite
-- Commenced Stage II Exploration and Drilling Programme in
Madagascar targeted at upgrading current Mineral Resource
Statement, anticipated to complete by end of 2021.
-- Signed agreement to acquire two advanced-stage, high-grade,
complementary graphite projects in Mozambique from ASX listed
Battery Minerals Ltd, adding c.6x of JORC (2012) Resources and
c.12x of contained graphite.
Key appointments made to strengthen and support rapid growth of
the Company
-- Appointed additional independent Non-Executive Director, Mr. Lincoln Moore.
-- Appointed several eminent technocrats and scientists
specialising in the fields of flake graphite, speciality graphite,
graphene and advanced materials and mineral processing technology
and over 30 engineers, geologists, and specially trained
technicians across all three business units.
CHAIRMAN'S STATEMENT
First, may I extend a very warm welcome to the hundreds of new
shareholders in our Company, and hundreds of stakeholders too, the
Tirupati Graphite ("TG") family has grown from strength to strength
in this eventful year. It is also my privilege to present to you
the first Annual Report as a quoted company and the fourth since
inception. We find ourselves to be fortunate - being in the right
space at the right time - contributing to the global cause of
mitigating the risks of climate change.
The year gone by was monumental, providing us the opportunity to
extend our gratitude to the Financial Conduct Authority ("FCA") and
The London Stock Exchange Group ("LSE"), and all of our advisors
who helped us complete the process for admission of our ordinary
shares on the main board of the LSE. The successful capital raise
at our Initial Public Offering ("IPO") paved the way and the
oversubscribed follow-on placing completed in April 2021 further
strengthened our resolve and conviction to fast-track the
development of our three business divisions in Madagascar and
India. We stand tall and the Company is proud to be the only fully
integrated graphite producer and developer publicly quoted in
London.
During the year under review, I am pleased to report that
considerable progress was made towards achieving our goal of
becoming the pre-eminent supplier of sustainable graphite, graphene
and advanced materials. Our focus on graphite and graphene is
strategic, based not only on our team's track record of working in
the sector for decades, but also on what we believe to be a highly
favourable long-term demand profile of a critical material that is
a substantial contributor to the global clean energy revolution and
therefore, an opportunity for us to become a contributor to the
evolution and advancement of new age materials for a greener
globe.
You do not have to look far to see just how ubiquitous and
important graphite has become to our everyday lives. Not only is it
central to the green energy transition and electrification of
mobility, but it is also increasingly used in the fire safety,
thermal management, composites and advanced materials industries
amongst many others, helping to reduce emissions, increase energy
efficiency and reduce fire hazards.
According to a report by Battery Metals Review, most
commentators are forecasting electric vehicles ('EV') sales to be
in the range between 30-40 million per year by 2030, from the circa
2 million EVs sold in 2019 resulting in an 1100% increase in
current flake demand for batteries to c.3.1 million tonnes per year
by 2030. And that is for usage in batteries alone. Factoring other
industries into the equation and the figure is likely to be
substantially higher with the likes of UBS suggesting a 7x growth
in demand to 5.9 million tonnes per year by 2030.
Notably in our opinion, not all graphite projects currently in
production produce sustainable high-quality flake graphite. Much of
the current volumes used in electric vehicles reaching the market
comes from mines in China which tend to use significant amounts of
hydrofluoric acid in their processing methods to produce high
purity grades of graphite, a practice which we believe is counter
to global sustainability goals in the long term.
As we have successfully demonstrated at our two Madagascan
projects, Sahamamy and Vatomina, the Company is able to produce
large flake, high-quality graphite using unique and importantly
sustainable processing techniques which not only means that our
graphite is greener, but that we can deliver it at very high
margins. With our first 9,000 tpa module at Vatomina now
commissioned at the upgraded capacity, and having raised additional
funds in April 2021, we are accelerating our development plans and
anticipate total capacity across both projects to reach 30,000 tpa
by Q1/Q2 2022. This will represent a ten-fold increase since
becoming a listed company in December 2020.
Concurrently, we have been pushing ahead with the redevelopment
of the existing hydro power facilities in Madagascar which is
targeted to meet most of the power requirements for the current
Sahamamy operations. We have also initiated the studies on the use
of renewable energy which is aimed at substantially powering our
projects in Madagascar when we reach the 30,000 tpa capacity build
out under our medium-term development plan ("MTDP").
In addition to our significant achievements under our existing
development plans, the icing on the cake for us was entering into a
conditional acquisition agreement for the Montepuez and Balama
Central projects from ASX listed Battery Minerals Ltd. The
acquisition requires approval from shareholders of Battery Minerals
Ltd as well as approval by the Ministry of Mineral Resources and
Energy in Mozambique. The Montepuez Project is a construction ready
project with substantial reserves and resources, while the Balama
Central Project is an advanced feasibility stage project with a
combined JORC Code (2012) resources of c. 152 million tonnes @ 8.5%
TGC. Post completion of the acquisition, the projects will provide
us with additional resources to expand and diversify our supply of
high-quality graphite as the markets evolve driven by growing
demand from EV and other segments. The other advantages of the
acquisition for us include diversification of our country risks;
access to higher grade deposits; and a complementary type of
graphite (i.e. more of the smaller flake variety) which is demanded
by the EV sector. The acquisition demonstrates our team's ability
to achieve our stated strategic objectives both operationally and
corporately. The team are now working with the vendors side to
complete the acquisition and have already began re-working the
development plans for Montepuez using our in-house expertise and
experience; it is our intention to advance into construction and
first production in the shortest available time to take advantage
of the favourable tailwinds of the graphite markets. We will
continue to update the market on the progress of the acquisition
and developments as they advance.
Our Patalganga project continues to evolve at a good pace. We
continue to create new markets for our range of expandable graphite
products and provide the backbone for the creation of markets for
our larger downstream specialty graphite project which is under
construction. The integrated, multi-product speciality graphite
project will provide throughput of all variants required for
high-tech graphite applications, thus making us one of the very few
companies globally, which can boast the capabilities of providing
'any type of graphite' required to our customers. We have
continuously differentiated and evolved our processing technologies
for these niche products, distinguishing our manufacturing
processes from the conventional processes used by most of the
current Chinese sources of specialty graphite, minimising our
footprint on the environment and ensuring our projects are
sustainable.
In tandem with the growing expectations on sustainable supply
chains and the opportunities this presents, we see ourselves
evolving as a frontrunner in the energy storage arena, alongside
fire safety and thermal management and composites and advanced
materials applications of speciality graphite products.
Lastly, but not least, our Graphene and Mintech Research Centre
which is our state-of-the-art R&D and technology centre
designed to house our manufacturing facilities of graphene and
other advanced materials, has completed the first stage
development; this is a commendable achievement that truly sets us
apart from any other company in the UK and possibly the world. This
division of the Company has been making huge strides forward
including the creation of manufacturing capabilities for Graphene
Oxide ("GO") and Reduced Graphene Oxide ("rGO") at a significant
and commercially viable kilogram per day scale; taken on a number
of consultancy engagements for process development projects; and
has made its first significant in-roads into the new world of
metals and 2D composite materials.
The successful development of our ground-breaking aluminium
graphene composite ("Al-Gr Composite"), which has the potential to
replace copper in many weight-sensitive applications, puts us into
the category of other advanced materials technology companies which
is an achievement that every stakeholder should take pride in. It
is also testimony to the leading efforts and capabilities of the
Company in the world of advanced materials. Not surprisingly, we
have been receiving a lot of interest for our Al-Gr Composite
product and we are now working with a suite of companies to develop
it further and pave the way to commercialisation.
To conclude, I again share our principles of value creation,
which we have adopted since inception of our Company, and which
continue to remain our guiding principles:
-- Value creation for the planet and for future generations:
By developing unique materials which have many 'green'
applications contributing towards a more sustainable and greener
planet for future generations and developing technologies and
processes to minimise emission and waste generation.
-- Value creation for our employees:
By providing opportunities for performance and learning,
achieving corporate goals and personal development, to inspire
quality delivery on the objectives and values we strive for.
-- Value creation for the local communities we operate in:
By looking after our employees and their families and providing
healthcare, education and recreational facilities and support for
local communities, helping bring communities together and improving
their general quality of life.
-- Value creation for our shareholders:
Through well considered and crafted business strategies and
plans, implemented with persistence and determination, and adopting
a culture of cost prudence, hard work, and delivering on
targets.
You will observe that in our journey to date, we have performed
on each of the four pillars of value creation we set for ourselves
at the outset:
1) Providing materials for the green economy and developing novel new age materials;
2) Nurturing human capital and developing a team that delivers;
3) Improving the quality of life of thousands of people in the communities around us; and
4) Delivering on a prudent business plan and creating values for
our shareholders reflected in our share price growth.
We are proud of our long history of innovation, our reputation
as a respected, well-governed and safe place to work, and the role
our products play in the green revolution. At the heart of this
success is our team spirit of 'together we can and will achieve our
goals'. As the Company continues to grow at a monumental pace, we
look forward to maintaining this ethos and upholding our
sustainable values to deliver measurable success on every level be
it economic, social, or environmental.
Shishir Poddar
Executive Chairman & Managing Director
17 September 2021
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2021
2021 2020
GBP GBP
Notes
----------------------------------------------------------------- ------ ---------------------- ----------------
Continuing operations
----------------------------------------------------------------- ------ ---------------------- ----------------
Revenue 6 1,123,426 793,577
================================================================= ====== ====================== ================
Cost of Sales (488,083) (411,899)
----------------------------------------------------------------- ------ ---------------------- ----------------
Gross profit 635,343 381,678
================================================================= ====== ====================== ================
Administrative expenses 7 (1,737,304) (1,193,650)
Operating loss (1,101,961) (811,972)
Finance costs 9 (147,151) (46,003)
Loss before income tax (1,249,112) (857,975)
Income tax 10 (27,827) (54,767)
Loss for the year attributable to owners of the Company (1,276,939) (912,742)
================================================================= ====== ====================== ================
Other comprehensive income:
Items that may be reclassified to profit or loss:
================================================================= ====== ====================== ================
Exchange differences on translation of foreign operations (417,693) (1,382)
================================================================= ====== ====================== ================
Total comprehensive loss for the year attributable to the Group (1,694,632) (914,124)
----------------------------------------------------------------- ------ ---------------------- ----------------
Earnings per share attributable to owners of the Company Pence per share Pence per share
From continuing operations:
Basic 11 (2.61) (1.53)
Diluted 11 (2.37) (1.53)
The accompanying accounting policies and notes are an integral
part of these financial statements
Consolidated and Company Statement of Financial Position
As at 31 March 2021
Group Company
============================================== ====== ========================== ==========================
2021 2020 2021 2020
============================================== ====== ============ ============ ============ ============
GBP GBP GBP GBP
============================================== ====== ============ ============ ============ ============
Notes
---------------------------------------------- ------ ------------ ------------ ------------ ------------
Non-current assets
Investments in subsidiaries 13 - - 3,539,448 3,539,448
Property, plant and equipment 14 3,020,142 1,980,635 201,725 544,209
Deferred tax 21,182 49,422 - -
Deposits 1,872 2,121 - -
Intangible assets 12 3,682,354 3,691,243 40,970 153,001
---------------------------------------------- ------ ------------ ------------ ------------ ------------
Total non-current assets 6,725,550 5,723,421 3,782,143 4,236,658
---------------------------------------------- ------ ------------ ------------ ------------ ------------
Current assets
Inventory 16 461,093 150,105 212,581 -
Trade and other receivables 15 1,102,868 409,309 5,547,806 2,709,828
Cash and cash equivalents 1,644,189 46,640 1,491,454 34,955
---------------------------------------------- ------ ------------ ------------ ------------ ------------
Total current assets 3,208,150 606,054 7,251,841 2,744,783
---------------------------------------------- ------ ------------ ------------ ------------ ------------
Current liabilities
Trade and other payables 17 445,273 427,871 219,780 433,355
---------------------------------------------- ------ ------------ ------------ ------------ ------------
Total current liabilities 445,273 427,871 219,780 433,355
---------------------------------------------- ------ ------------ ------------ ------------ ------------
Net current assets 2,762,877 178,183 7,032,061 2,311,428
---------------------------------------------- ------ ------------ ------------ ------------ ------------
Non-current liabilities
============================================== ====== ============ ============ ============ ============
Borrowings 19 1,283,000 810,000 1,283,000 810,000
============================================== ====== ============ ============ ============ ============
Other payables 17 23,864 817,388 - 779,621
---------------------------------------------- ------ ------------ ------------ ------------ ------------
Total non-current liabilities 1,306,864 1,627,388 1,283,000 1,589,621
---------------------------------------------- ------ ------------ ------------ ------------ ------------
NET ASSETS 8,181,563 4,274,216 9,531,204 4,958,465
---------------------------------------------- ------ ------------ ------------ ------------ ------------
Equity
============================================== ====== ============ ============ ============ ============
Share capital 20 1,871,084 1,498,132 1,871,084 1,498,132
============================================== ====== ============ ============ ============ ============
Share premium account 10,426,988 5,328,517 10,426,988 5,328,518
============================================== ====== ============ ============ ============ ============
Warrant reserve 21 130,557 - 130,557 -
============================================== ====== ============ ============ ============ ============
Foreign exchange reserve (414,546) 3,147 - -
============================================== ====== ============ ============ ============ ============
Retained losses (3,832,520) (2,555,580) (2,897,425) (1,868,185)
---------------------------------------------- ------ ------------ ------------ ------------ ------------
Equity attributable to owners of the Company 8,181,563 4,274,216 9,531,204 4,958,465
============================================== ====== ============ ============ ============ ============
TOTAL EQUITY 8,181,563 4,274,216 9,531,204 4,958,465
---------------------------------------------- ------ ------------ ------------ ------------ ------------
The Company has elected to take the exemption under section 408
of the Companies Act 2006 not to present the parent company
statement of comprehensive income.
The loss for the parent company for the year was GBP1,029,240
(2020: GBP634,880).
The accompanying accounting policies and notes are an integral
part of these financial statements.
The financial statements were approved by the Board of Directors
on 17 September 2021 and signed on its behalf by:
Mr Shishir Poddar
Executive Chairman and Managing Director
Company registration number: 10742540
Consolidated Statement of Changes in Equity
For the year ended 31 March 2021
Share capital Share premium Foreign Share warrants Retained losses TOTAL
exchange reserve EQUITY
reserve
GBP GBP GBP GBP GBP GBP
----------------- -------------- -------------- ---------------- ----------------- ---------------- ------------
Balance at 1
April 2019 1,470,275 5,024,524 4,714 - (1,642,839) 4,856,674
----------------- -------------- -------------- ---------------- ----------------- ---------------- ------------
Total
comprehensive
income:
============== ============== ================ ================= ================ ============
Loss for the
period - - - - (912,742) (912,742)
============== ============== ================ ================= ================ ============
Forex exchange
loss - - (1,567) - - (1,567)
============== ============== ================ ================= ================ ============
Transactions
with owners:
============== ============== ================ ================= ================ ============
Shares issued 27,857 353,994 - - - 381,851
============== ============== ================ ================= ================ ============
Share
application
money - (50,000) - - - (50,000)
----------------- -------------- -------------- ---------------- ----------------- ---------------- ------------
Balance at 31
March 2020 1,498,132 5,328,518 3,147 - (2,555,581) 4,274,215
----------------- -------------- -------------- ---------------- ----------------- ---------------- ------------
Total
comprehensive
income:
============== ============== ================ ================= ================ ============
Loss for the
period - - - - (1,276,940) (1,276,940)
============== ============== ================ ================= ================ ============
Forex exchange
loss - - (417,693) - - (417,693)
============== ============== ================ ================= ================ ============
Transactions
with Equity
owners:
============== ============== ================ ================= ================ ============
Shares issued 372,952 5,098,470 - - - 5,471,422
============== ============== ================ ================= ================ ============
Warrant charge - - - 130,557 - 130,557
----------------- -------------- -------------- ---------------- ----------------- ---------------- ------------
Balance at 31
March 2021 1,871,084 10,426,988 (414,546) 130,557 (3,832,521) 8,181,563
----------------- -------------- -------------- ---------------- ----------------- ---------------- ------------
The accompanying accounting policies and notes are an integral
part of these financial statements.
Share capital - Represents the nominal value of the issued share
capital.
Share premium account - Represents amounts received in excess of
the nominal value on the issue of share capital less any costs
associated with the issue of shares.
Retained earnings - Represents accumulated comprehensive income
for the year and prior periods.
Foreign exchange reserve - Represents exchange differences
arising from the translation of the financial statements of foreign
subsidiaries and the retranslation of monetary items forming part
of the net investment in those subsidiaries.
Share warrant reserve - Represents reserve for equity component
of warrants issued as per IFRS 2 share-based payments.
Company Statement of Changes in Equity
For the year ended 31 March 2021
Share capital Share premium Share warrants reserve Retained losses TOTAL
EQUITY
GBP GBP GBP GBP GBP
----------------------------- -------------- -------------- ----------------------- ---------------- ------------
Balance at 1 April 2019 1,470,275 4,974,524 - (1,233,304) 5,211,495
----------------------------- -------------- -------------- ----------------------- ---------------- ------------
Total comprehensive income:
============== ============== ======================= ================ ============
Loss for the period - - - (634,881) (634,881)
============== ============== ======================= ================ ============
Transactions with owners:
============== ============== ======================= ================ ============
Shares issued 27,857 353,994 - - 381,851
----------------------------- -------------- -------------- ----------------------- ---------------- ------------
Balance at 31 March 2020 1,498,132 5,328,518 - (1,868,185) 4,958,465
----------------------------- -------------- -------------- ----------------------- ---------------- ------------
Total comprehensive income:
============== ============== ======================= ================ ============
Loss for the period - - - (1,029,240) (1,029,240)
============== ============== ======================= ================ ============
Transactions with Equity
owners:
============== ============== ======================= ================ ============
Shares issued 372,952 5,098,470 - - 5,471,422
============== ============== ======================= ================ ============
Warrant charge - - 130,557 - 130,557
----------------------------- -------------- -------------- ----------------------- ---------------- ------------
Balance at 31 March 2021 1,871,084 10,426,988 130,557 (2,897,425) 9,531,204
----------------------------- -------------- -------------- ----------------------- ---------------- ------------
The accompanying accounting policies and notes are an integral
part of these financial statements.
Share capital - Represents the nominal value of the issued share
capital.
Share premium account - Represents amounts received in excess of
the nominal value on the issue of share capital less any costs
associated with the issue of shares.
Retained earnings - Represents accumulated comprehensive income
for the year and prior periods.
Share warrant reserve - Represents reserve for equity component
of warrants issued as per IFRS 2 share-based payments.
Consolidated Statement of Cash Flows
For the year ended 31 March 2021
2021 2020
================================================== ============ ============
GBP GBP
-------------------------------------------------- ------------ ------------
Cash used in operating activities
Loss for the year (1,276,940) (912,742)
Adjustment for:
Depreciation 205,723 127,100
Convertible loan note costs ("CLN") 21,910 56,700
Share based payments expense 49,627 -
Finance costs 147,151 46,003
Income tax (27,827) (54,767)
Working capital changes:
Increase in inventories (310,987) (93,604)
(Increase)/Decrease in receivables (693,559) 21,935
Increase/(Decrease) in payables 17,402 (274,112)
--------------------------------------------------- ------------ ------------
Net cash used in operating activities (1,867,500) (1,083,487)
--------------------------------------------------- ------------ ------------
Cash flows from investing activities:
Purchase of tangible assets (1,039,507) (846,229)
Purchase of other assets 28,489 (18,045)
Net advances given (586,700) 137,091
--------------------------------------------------- ------------ ------------
Net cash from investing activities (1,597,718) (727,183)
--------------------------------------------------- ------------ ------------
Cash flows from financing activities
Proceeds from Shares issued (net of costs) 5,552,352 331,851
Proceeds from issue of Convertible loan notes 473,000 810,000
Cost of issue of Convertible loan notes (21,910) (56,700)
Finance cost (147,151) (46,003)
Increase / (decrease) in long term liabilities (793,524) 773,481
--------------------------------------------------- ------------ ------------
Net cash from financing activities 5,062,767 1,812,629
--------------------------------------------------- ------------ ------------
Net increase in cash and cash equivalents 1,597,549 1,959
=================================================== ============ ============
Cash and cash equivalents at beginning of period 46,640 44,681
--------------------------------------------------- ------------ ------------
Cash and cash equivalents at end of period 1,644,189 46,640
--------------------------------------------------- ------------ ------------
The accompanying accounting policies and notes are an integral
part of these financial statements.
Net advances - Represents the net advances given to the
suppliers of machinery for supply of equipment for Madagascar
projects of the Company
Company Statement of Cash Flows
For the year ended 31 March 2021
2021 2020
=============================================== ============ ==========
GBP GBP
----------------------------------------------- ------------ ----------
Loss for the year (1,029,240) (634,880)
Adjustment for:
Increase in inventories (212,580) -
Foreign exchange loss - 9,621
Share based payments 49,627 -
CLN issuance cost 21,910 -
Finance costs 147,151 46,003
Working capital changes:
Increase in receivables (2,837,978) (616,060)
(decrease)/Increase in payables (213,576) 456,799
------------------------------------------------ ------------ ----------
Net cash used in operating activities (4,074,686) (738,517)
------------------------------------------------ ------------ ----------
Cash flows from investing activities:
(Purchase)/sale of tangible assets 342,484 (333,809)
(Purchase)/sale of intangible assets 112,031 (36,159)
------------------------------------------------ ------------ ----------
Net cash from investing activities 454,515 (369,968)
------------------------------------------------ ------------ ----------
Cash flows from financing activities
Shares issued 5,552,352 381,851
Proceeds from issue of convertible loan notes 473,000 810,000
CLN issue cost (21,910) (56,700)
(decrease) in long term liabilities (779,621) -
Finance costs (147,151) -
----------------------------------------------- ------------ ----------
Net cash from financing activities 5,076,670 1,135,151
------------------------------------------------ ------------ ----------
Net increase in cash and cash equivalents 1,456,499 26,666
================================================ ============ ==========
Cash and cash equivalents brought forward 34,955 8,289
------------------------------------------------ ------------ ----------
Cash and cash equivalents carried forward 1,491,454 34,955
------------------------------------------------ ------------ ----------
The accompanying accounting policies and notes are an integral
part of these financial statements.
Notes to the Financial Statements
1. General information
Tirupati Graphite plc (the "Company") is incorporated in England
and Wales, under the Companies Act 2006. The registered office
address is given on Company Information page.
The Company is a public company, limited by shares. On 14
December 2021 the ordinary shares of the Company were admitted on
the official list of the FCA and to trading on the main market of
the London stock exchange through standard listing.
The principal activities of the Company and its subsidiaries
(the "Group") and the nature of the Group's operations are set out
in the Strategic Report.
These consolidated financial statements are presented in pounds
sterling since that is the currency of the primary economic
environment in which the Group and Company operates.
2. Adoption of new and revised International Financial Reporting Standards (IFRSs)
New standards
The Group and Company have adopted all recognition, measurement,
and disclosure requirements of IFRS, including any new and revised
standards and Interpretations of IFRS, in effect for annual periods
commencing on or after 1 April 2020. The adoption of these
standards and amendments did not have any material impact on the
financial result of position of the Group and Company.
Standards which are in issue but not yet effective:
At the date of authorisation of these financial statements, the
following Standards and Interpretation, which have not yet been
applied in these financial statements, were in issue but not yet
effective.
Standard or Description Effective
interpretation date
IAS 1 Amendments - Classification of Liabilities 1 January
as Current or Non-Current 2023
------------------------------------------- -----------
IAS 16 Amendments - Property, Plant and 1 January
Equipment 2022
------------------------------------------- -----------
IAS 8 Amendments - Definition of Accounting 1 January
Estimates 2023
------------------------------------------- -----------
IAS 1 Amendments - Disclosure of Accounting 1 January
Policies 2023
------------------------------------------- -----------
IFRS Annual improvements to IFRS Standards 1 January
2018-2020 2022
------------------------------------------- -----------
The Group and Company have not early adopted any of the above
standards and intends to adopt them when they become effective.
3. Significant accounting policies
Basis of preparation
These consolidated financial statements have been prepared in
accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006 and in accordance
with the requirements of the Companies Act 2006.
The financial statements have been prepared on the historical
cost basis, except for financial instruments that are measured at
the fair values at the end of the reporting period. Historical cost
is generally based on the fair value of the consideration given in
exchange for goods and services.
The preparation of financial statements in conformity with IFRS
requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of
applying the accounting policies. The areas involving a higher
degree of judgement or complexity, or areas where assumptions and
estimates are significant to the consolidated financial statements,
are disclosed in Note 4.
The principal accounting policies adopted are set out on the
following pages.
Going concern
The Group's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Business Review and Strategic Report Sections.
The financial position of the Group and the Company, their cash
flows and liquidity positions are contained in the financial
statements. The expected evolution of the business and significant
post year end events are also described in the business review and
strategic reports. In addition, the Annual Report discloses the
Group's objectives, policies and processes for managing its
business and capital; its financial risk management objectives;
details of its financial instruments; and its exposure to credit
and liquidity risk.
At the beginning of the year under reporting, the Company was a
private entity with a small operation developing its business as
described in the business review section, and was incurring nett
losses at the Group level. It was in the process to seek admission
on the standard segment of the London Stock Exchange and during the
year, the Company achieved success in its efforts with a successful
IPO raising gross proceeds of GBP6,000,000 to pursue further
investments and creation of additional capacities to grow its
business. Post year end, the Company further raised gross proceeds
of GBP10,000,000 to meet its investments and working capital needs.
Post its IPO, the Group progressed development of 3X additional
flake graphite production capacity which was fully commissioned in
early September 2021 post year end, enhancing its installed
capacity from the previous 3,000 tpa to 12,000 tpa. It further
remains funded for its investment needs for the next additional
capacity under construction being 18,000 tpa which is expected to
complete and commission in Q1/Q2 2022. From the operations of the
3,000 tpa capacity existing in the year under review, the Company
generated gross Profits of GBP635,342 in spite of lower capacity
utilisation, which it expects to improve further with the impacts
of the pandemic expected to recede and additionally, for the second
half of the current year, additional capacity of 9,000 tpa shall be
operational.
Taking in to account the comments above, the Directors have, at
the time of approving the financial statements, a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future, given its current
cash resources, installed capacities and operations which now have
broken the threshold for the Company to meet all its non-investment
cash needs from revenues and additional capacities being built by
the Company for which it remains fully funded and which when
completed, are expected to add further additional operating cash
flows.
Should the Company not be unable to meet its investment needs
from the internal accruals coupled with its current cash resources
and not raise additional funds in the foreseeable future for its
investment plans, the Directors would implement delays in
investment for additional capacities and / or cost and cash saving
measures and continue to generate revenues in order to meet its
liabilities as they fall due. Therefore, they continue to adopt the
going concern basis of accounting in preparing the financial
statements.
Notwithstanding the loss incurred during the year under review,
the Directors have prepared and reviewed a cash flow forecast
including consideration of the impact of COVID-19. The forecast
contains certain assumptions about the level of future sales and
margins achievable. The Directors have considered various future
scenarios in their forecasting to enable them to adequately
consider whether the Group has adequate resources to continue in
operational existence and remain of the view that the Company has
adequate cash resources, business prospects and access to capital
markets to remain a going concern.
Basis of consolidation
Subsidiaries are all entities (including structured entities)
over which the Group has control. The Group controls an entity when
the Group is exposed to, or has rights to, variable returns from
its involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the
Group. They are deconsolidated from the date that control
ceases.
The Group re-assesses whether or not it controls an investee if
facts and circumstances indicate that there are changes to one or
more of the three elements of control. Assets, liabilities, income
and expenses of a subsidiary acquired or disposed of during the
year are included in the consolidated financial statements from the
date the Group gains control until the date the Group ceases to
control the subsidiary.
The Group consists of Tirupati Graphite plc and its wholly owned
subsidiaries Tirupati Resources Mauritius, Tirupati Madagascar
Ventures and Establissements Rostaing.
In the parent company financial statements, investments in
subsidiaries, joint ventures and associates are accounted for at
cost less impairment.
The consolidated financial statements incorporate those of
Tirupati Graphite plc and all of its subsidiaries (i.e. entities
that the group controls through its power to govern the financial
and operating policies so as to obtain economic benefits).
Subsidiaries acquired during the year are consolidated using the
purchase method. Their results are incorporated from the date that
control passes.
All financial statements are made up to 31 March 2021. Where
necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with
those used by other members of the group.
All intra-group transactions, balances, and unrealised gains on
transactions between Group companies are eliminated on
consolidation.
Segment reporting
An operating segment is a component of the Group that engages in
business activity from which it may earn revenues and incur
expenses, including revenues and expenses that relate to
transactions with the Group's other components. All operating
segments' operating results, for which discrete financial
information is available, are reviewed regularly by the Group's
Board to make decisions about resources to be allocated to the
segment and assess its performance. The Group reports on a
three-segment basis - Holding Companies Expenses, Mining
Exploration and Development and Graphite Mining Extraction.
Revenue recognition
Revenue is measured at the fair value of the consideration
received or receivable and represents amounts receivable for goods
or services supplied in course of ordinary business, stated net of
discounts, returns and value added taxes. The Group recognises
revenue in accordance with IFRS 15 at either a point in time of
over time, depending on the nature of the goods or services and
existence of acceptance clauses.
Revenue from the sale of goods is recognised when delivery has
taken place and the performance obligation of delivering the goods
has taken place. The performance obligation of products sold are
transferred according to the specific delivery terms that have been
formally agreed with the customer, generally upon delivery when the
bill of lading is signed as evidence that they have accepted the
product delivered to them.
Foreign currencies
For the purposes of the consolidated financial statements, the
results and financial position of each Group company are presented
in pounds sterling, which is the functional currency of the
Company. At balance sheet date, monetary assets and liabilities
that are denominated in foreign currencies are retranslated at the
rates prevailing at that date. Income and expense items are
translated at the average exchange rates for the period.
Taxation
Income tax represents the sum of current tax and deferred
tax.
Current tax
Current tax is based on taxable profit or loss for the year.
Taxable profit or loss differs from net profit or loss as reported
in the income statement because it excludes items of income or
expense that are taxable or deductible in other years and it
further excludes items that are never taxable or deductible. The
Group's liability for current tax is calculated using tax rates
that have been enacted or substantively enacted by the balance
sheet date.
A provision is recognised for those matters for which the tax
determination is uncertain, but it is considered probable that
there will be a future outflow of funds to a tax authority. The
provisions are measured at the best estimate of the amount expected
to become payable. The assessment is based on the judgement of tax
professionals within the Company supported by previous experience
in respect of such activities and in certain cases based on
specialist independent tax advice.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit and is accounted for using the
balance sheet liability method.
Deferred tax liabilities are generally recognised for all
taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable profits
will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if
the temporary difference arises from the initial recognition of
goodwill or from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow
all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled, or the asset is
realised based on tax laws and rates that have been enacted or
substantively enacted at the balance sheet date. Deferred tax is
charged or credited in the income statement, except when it relates
to items charged or credited in other comprehensive income, in
which case the deferred tax is also dealt with in other
comprehensive income.
The measurement of deferred tax liabilities and assets reflects
the tax consequences that would follow from the manner in which the
Group expects, at the end of the reporting period, to recover or
settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied
by the same taxation authority and the Group intends to settle its
current tax assets and liabilities on a net basis.
Current tax and deferred tax for the year
Current and deferred tax are recognised in profit or loss,
except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognised in other comprehensive
income or directly in equity respectively. Where current tax or
deferred tax arises from the initial accounting for a business
combination, the tax effect is included in the accounting for the
business combination.
Assets Under Construction
All expenditure on the construction, installation or completion
of infrastructure facilities is capitalised as construction in
progress within "Assets Under Construction". Once production
starts, all assets included in "Assets Under Construction" will be
transferred into "Property, Plant and Equipment". It is at this
point that depreciation/amortisation commences over its useful
economic life.
Assets Under Construction are stated at cost. The initial cost
comprises transferred Mining Exploration and Evaluation assets,
construction costs, infrastructure facilities, any costs directly
attributable to bringing the asset into operation, the initial
estimate of the rehabilitation obligation, and, for qualifying
assets and borrowing costs. Costs are capitalised and categorised
as construction in progress.
Property, Plant and Equipment
Property, Plant and Equipment in the course of construction for
production, supply or administrative purposes, or for purposes not
yet determined, are carried at cost, less any recognised impairment
loss. Costs includes professional fees and, for qualifying assets,
borrowing costs capitalised in accordance with the Group's
accounting policy. Depreciation of these assets, on the same basis
as other property assets, commences when the assets are ready for
their intended use.
Fixtures and equipment are stated at cost less accumulated
depreciation and any recognised impairment loss. Depreciation is
recognised so as to write off the cost or valuation of assets
(other than freehold land and properties under construction) less
their residual values over their useful lives, using the
straight-line method, on the following bases:
Plant and machinery 10%-25% per annum
Infrastructure and fixtures 10%-25% per annum
The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period, with the
effect of any changes in estimate accounted for on a prospective
basis.
An item of Property, Plant and Equipment is derecognised upon
disposal or when no future economic benefits are expected to arise
from the continued use of the asset. The gain or loss arising on
the disposal or scrappage of an asset is determined as the
difference between the sales proceeds and the carrying amount of
the asset and is recognised in income.
Development costs
Expenditure on research activities is recognised as an expense
in the period in which it is incurred.
An internally-generated intangible asset arising from
development (or from the development phase of an internal project)
is recognised if, and only if all of the following conditions have
been demonstrated:
-- the technical feasibility of completing the intangible asset
so that it will be available for use or sale;
-- the intention to complete the intangible asset and use or sell it;
-- the ability to use or sell the intangible asset;
-- how the intangible asset will generate probable future economic benefits;
-- the availability of adequate technical, financial and other
resources to complete the development and to use or sell the
intangible asset; and
-- the ability to measure reliably the expenditure attributable
to the intangible asset during its development.
The amount initially recognised for internally-generated
intangible assets is the sum of the expenditure incurred from the
date when the intangible asset first meets the recognition criteria
listed above. Where no internally-generated intangible asset can be
recognised, development expenditure is recognised in profit or loss
in the period in which it is incurred.
Subsequent to initial recognition, internally-generated
intangible assets are reported at cost less accumulated
amortisation and accumulated impairment losses, on the same basis
as intangible assets that are acquired separately.
Mining Exploration and Evaluation
Mining Exploration and Evaluation costs are carried forward in
respect of areas of interest where the consolidated entity's rights
to tenure are current, and where these costs are expected to be
recouped through successful development into production from the
area of interest or by sale or disposal of the project.
Alternatively, these costs are carried forward while active and
significant exploration and evaluation costs are continuing in
relation to the areas of interest and it is too early to make
reasonable assessment of the existence or otherwise of economical
production from the area of interest. When the area of interest is
abandoned, exploration and evaluation costs previously capitalised
pertaining to the area of interest are impaired.
Costs incurred by the Company on behalf of its subsidiaries and
associated with exploration and evaluation activities are
capitalised on a project-by-project basis pending commencement of
production from the project. Costs incurred include appropriate
technical and administrative expenses but not general overheads. If
the exploration and evaluation activities lead to economic
production from the project, the related expenditures will be
written-off over the estimated life (useful economic life) of the
project on a unit of production basis. Impairment reviews are
carried out regularly by the Directors of the Company. Where a
project is abandoned, or is considered to be of no further
commercial value, the related costs will be written off to the
Statement of Comprehensive Income.
The recoverability of these costs is dependent upon the
exploration and evaluation activities successfully transitioning
into production from the project, the ability of the Group to
obtain necessary financing to complete the development of the
project and derive future profitable production or proceeds from
the sale or disposal of the project.
Intangible assets acquired in a business combination
Intangible assets acquired in a business combination and
recognised separately from goodwill are initially recognised at
their fair value at the acquisition date (which is regarded as
their cost).
Subsequent to initial recognition, intangible assets acquired in
a business combination are reported at cost less accumulated
amortisation and accumulated impairment losses, on the same basis
as intangible assets that are acquired separately.
Derecognition of intangible assets
An intangible asset is derecognised on disposal, or when no
future economic benefits are expected from use or disposal. Gains
or losses arising from derecognition of an intangible asset,
measured as the difference between the net disposal proceeds and
the carrying amount of the asset, are recognised in profit or loss
when the asset is derecognised.
Inventories
Inventories are stated at the lower of cost and net realisable
value. Cost comprises direct materials and, where applicable,
direct labour costs and those overheads that have been incurred in
bringing the inventories to their present location and condition.
Cost is calculated using the weighted average method. Net
realisable value represents the estimated selling price less all
estimated costs of completion and costs to be incurred in
marketing, selling and distribution.
Investments
Investments in subsidiaries are held at cost less any
impairment.
Financial instruments
Financial assets and financial liabilities are recognised in the
Group's balance sheet when the Group becomes a party to the
contractual provisions of the instrument.
Financial assets
Initial recognition and measurement
The Group applies IFRS 9 "Financial Instruments" and elected the
simplified approach method.
The Group classifies its financial assets in the following
categories: loans and receivables and fair value through profit and
loss. The classification depends on the nature of the assets and
the purpose for which the assets were acquired. Management
determines the classification of its financial assets at initial
recognition and this designation at every reporting date.
Loans and receivables
Loans and receivables are non -- derivative financial assets
with fixed or determinable payments that are not quoted in an
active market. The principal financial assets of the Company are
loans and receivables, which arise principally through the
provision of goods and services to customers (e.g. trade
receivables) but also incorporate other types of contractual
monetary assets. They are included in current assets, except for
maturities greater than twelve months after the balance sheet date.
These are classified as non-current assets.
The Group's loans and receivables comprise trade and other
receivables and cash and cash equivalents in the Consolidated
Statement of Financial Position.
Financial assets are measured upon initial recognition at fair
value plus transaction costs directly attributable to the
acquisition of the financial assets, except for financial assets
measured at fair value through profit or loss in respect of which
transaction costs are recorded in profit or loss. Other financial
assets are classified into the following specified categories:
financial assets as "at fair value through profit and loss" and
"loans and receivables". The classification depends on the nature
and purpose of the financial assets and is determined at the time
of initial recognition.
The fair value of the liability portion of a convertible bond is
determined using a market rate of interest rate for an equivalent
non-convertible bond. This amount is recorded as a liability on an
amortised cost basis until extinguished on conversion or maturity
of the bonds. The remainder of the proceeds is allocated to the
conversion option. This is recognised and included in shareholders'
equity, net of income tax effects.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at
call with banks and other short-term highly liquid investments with
maturities of three months or less. Bank overdrafts that are
repayable on demand and form an integral part of the Group's cash
management are included as a component of cash and cash equivalents
in the consolidated cash flow statement.
Financial assets - impairment
The Group assesses on a forward-looking basis the expected
credit losses associated with its instruments carried at amortized
cost and Fair Value Through Profit or Loss ("FVTPL"). The
impairment methodology applied depends on whether there has been a
significant increase in credit risk. For trade receivables, the
Group applies the simplified approach permitted by IFRS 9, which
requires expected lifetime losses to be recognised from initial
recognition of the receivables.
Non-financial assets - impairment
At each balance sheet date, the Group reviews the carrying
amounts of its tangible and intangible assets, including Goodwill,
to determine whether there is any indication that these assets have
suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated to determine the
extent of the impairment loss (if any). Provision is made for any
impairment and immediately expensed in the period.
The recoverable amount is the higher of fair value less costs to
sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been
adjusted.
If the recoverable amount of an asset (or cash-generating unit)
is estimated to be less than its carrying amount, the carrying
amount of the asset (or cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognised as an expense
immediately, unless the relevant asset is carried at a revalued
amount, in which case the impairment loss is treated as a
revaluation decrease.
Financial liabilities and equity instruments issued by the
Group
Financial liabilities and equity instruments are classified
according to the substance of the contractual arrangements entered
into. An equity instrument is any contract that evidences a
residual interest in the assets of the Group after deducting all of
its liabilities. Equity instruments issued by the Group are
recorded at the proceeds received, net of direct issued costs.
Trade payables
Trade payables are initially measured at fair value, and are
subsequently measured at amortised costs, using the effective
interest rate method.
Borrowings
These financial liabilities are all non-interest bearing and are
initially recognised at amortised costs and include the transaction
costs directly related to the issuance. The transaction costs are
amortised using the effective interest rate method over the life of
the liability.
Financial liabilities at Fair Value Through Profit or Loss
("FVTPL")
Financial liabilities at FVTPL comprise of the Company's
convertible loan notes payable. Financial liabilities are
classified as at FVTPL when the financial liability is (i)
contingent consideration that may be paid by an acquirer as part of
a business combination to which IFRS 3 applies, (ii) held for
trading, or (iii) it is designated as at FVTPL.
A financial liability is classified as held for trading if:
-- it has been incurred principally for the purpose of repurchasing it in the near term; or
-- on initial recognition it is part of a portfolio of
identified financial instruments that the Company manages together
and has a recent actual pattern of short-term profit-taking; or
-- it is a derivative that is not designated and effective as a hedging instrument.
A financial liability other than a financial liability held for
trading or contingent consideration that may be paid by an acquirer
as part of a business combination may be designated as at FVTPL
upon initial recognition if:
-- such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would otherwise
arise; or
-- the financial liability forms part of a group of financial
assets or financial liabilities or both, which is managed and its
performance is evaluated on a fair value basis, in accordance with
the Company's documented risk management or investment strategy,
and information about the grouping is provided internally on that
basis; or
-- it forms part of a contract containing one or more embedded
derivatives, and IAS 39 Financial Instruments: Recognition and
Measurement permits the entire combined contract (asset or
liability) to be designated as at FVTPL.
Financial liabilities at FVTPL are stated at fair value, with
any gains or losses arising on remeasurement recognised in profit
or loss. The net gain or loss recognised in profit or loss
incorporates any interest paid on the financial liability and is
included in the 'other gains and losses' line item in the income
statement.
Other financial liabilities
Other financial liabilities are initially measured at fair
value, net of transaction costs. Other financial liabilities are
subsequently measured at amortised cost using the effective
interest method, as set out above, with interest expense recognised
on an effective yield basis.
Share based payments
Equity-settled share-based payments are measured at fair value
at the date of grant by reference to the fair value of the equity
instruments granted using the Black-Scholes model. The fair value
determined at the grant date is expensed on a straight-line basis
over the vesting period, based on the estimate of shares that will
eventually vest. A corresponding adjustment is made to equity.
When the terms and condition of equity settled share-based
payments at the time they were granted are subsequently modified,
the fair value of the share-based payment under the original terms
and conditions and under the modified terms and conditions are both
determined at the date of the modification. Any excess of the
modified fair value over the original fair value is recognised over
the remaining vesting period in addition to the grant date fair
value of the original share-based payment. The share-based payment
expense is not adjusted if the modified fair value is less than the
original fair value.
Cancellations or settlements are treated as an acceleration of
vesting and the amount that would have been recognised over the
remaining vesting period is recognised immediately.
As a result of the increase in share price and the impact of the
estimation of share-based payments the Group has now recognised an
expense for the outstanding share options and warrants.
4. Critical accounting estimates and judgements
The preparation of financial statements in conformity with
adopted IFRSs requires the use of estimates and assumptions that
affect the reported amounts of assets and liabilities at the date
of the financial statements and the reported amounts of sales and
expenses during the reporting period. Although these estimates are
based on management's best knowledge of the amount, event or
action, actual results ultimately may differ from those
estimates.
Estimates and judgements are continually evaluated and are based
on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the
circumstances.
The Group makes estimates and assumptions concerning the future.
The resulting accounting estimates will, by definition, seldom
equal the related actual results. The estimates and assumptions
that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next
financial period are discussed below.
a) Impairment of assets
The Company is required to test, on an annual basis, whether its
non-current assets have suffered any impairment. Determining
whether these assets are impaired requires an estimation of the
value in use of the cash-generating units to which the assets have
been allocated. The value in use calculation requires the Directors
to estimate the future cash flows expected to arise from the
cash-generating unit and a suitable discount rate to calculate the
present value. Subsequent changes to the cash generating unit
allocation or to the timing of cash flows could impact on the
carrying value of the respective assets.
The Company assessed the recoverability of intragroup
receivables, and it does not require any impairment adjustment in
current financial year.
5. Segmental analysis
The Management believes, under IFRS 8 - "Segmental Information",
the Group operated in three primary business segments in 2021,
being Holding Companies Expenses, Mining Exploration and
Development and Graphite Mining Extraction.
Segmentation by continuing businesses
Segment results
2021 2020
GBP GBP
------------------------------------ ------------ ----------
Revenue to external customers
------------------------------------ ------------ ----------
Graphite Mining Extraction 1,123,426 793,577
(Loss) before income tax
------------------------------------ ------------ ----------
Holding Companies Expenses (1,002,218) (609,868)
Mining Exploration and Development (239,555) (193,042)
Graphite Mining Extraction (14,957) (55,065)
Net assets/(liabilities)
------------------------------------ ------------ ----------
Holding Company Expenses 9,120,707 5,440,186
Mining Exploration and Development (698,823) (193,749)
Graphite Mining Extraction (237,415) (573,146)
------------------------------------ ------------ ----------
Segmentation by geographical area:
2021 2020
GBP GBP
------------------------------- ------------ ----------
Revenue to external customers
------------------------------- ------------------------
UK 1,123,019 793,577
Mauritius - -
Madagascar 407 -
(Loss) before income tax
------------------------------- ------------ ----------
UK (1,036,857) (634,881)
Mauritius 785 (20,079)
Madagascar (220,658) (261,079)
Net assets
------------------------------- ------------ ----------
UK 9,534,110 5,593,346
Mauritius 159,159 189,322
Madagascar (1,508,800) (530,416)
------------------------------- ------------ ----------
6. Revenue from contracts with customers
The Group derives revenue from the transfer of goods at a point
in time in the following major product lines and geographical
regions:
2021 USA Europe India Total
Revenue from external
customers 19,565 211,584 892,277 1,123,426
Timing of recognition:
------------------------ ------- -------- -------- ----------
At a point in time 19,565 211,584 892,277 1,123,426
------------------------ ------- -------- -------- ----------
2020 USA Europe India Total
Revenue from external
customers 41,022 122,408 630,147 793,577
Timing of recognition:
------------------------ ------- -------- -------- --------
At a point in time 41,022 122,408 630,147 793,577
------------------------ ------- -------- -------- --------
7. Expenses by nature
2021 2020
GBP GBP
The following items have been included
in arriving at operating loss
Depreciation 205,723 127,100
Net foreign exchange loss (22,058) 1,382
PR/IR Expenses 119,181 65,881
Professional Fees 55,421 90,910
Auditor's remuneration has been included
in arriving at operating loss as follows:
Fees payable to the Company's auditor and
their associates for the audit of the Parent
Company and consolidated financial statements 45,000 33,209
Fees payable to the Company's auditor and
its associates for other services:
Corporate finance services 50,000 -
8. Employee information
The average monthly number of employees (including Executive
Directors) was:
2021 2020
Number of employees for the year: 203 150
GBP GBP
-------------------------------------------- ---------- --------
Wages & salaries (for the above employees) 930,707 380,892
Social security costs 12,521 7,122
Share based payments 68,739 -
-------------------------------------------- ---------- --------
1,011,967 388,014
-------------------------------------------- ---------- --------
Directors' remuneration and transactions
2021 2020
GBP GBP
Directors' remuneration
Emoluments and fees 634,849 324,000
-------------------------------------------- -------- --------
GBP GBP
-------------------------------------------- -------- --------
Remuneration of the highest paid director:
Emoluments and fees 240,000 180,000
Payment in lieu of retirement benefits 24,000 -
Bonus 198,000 -
Share based payments 20,507 -
-------------------------------------------- -------- --------
Refer to Directors Remuneration Report for further information
in respect of Directors' remuneration.
9. Finance cost
2021 2020
GBP GBP
Interest Expense 147,151 46,003
------------------ -------- -------
10. Income tax
2021 2020
GBP GBP
============ ==========
Total current tax - -
============ ==========
Deferred tax charged to the income statement 27,827 54,767
------------ ----------
Total 27,827 54,767
============ ==========
The tax assessed for the period is different
from the standard rate of income tax, as
explained below:
============ ==========
Loss before tax on continuing operations (1,249,113) (857,975)
============ ==========
Loss before tax multiplied by the standard
rate of income tax of 20% (249,823) (171,595)
============ ==========
Tax losses carried forward 221,996 116,828
============ ==========
Adjustments to tax charge in respect of - -
prior periods
============ ==========
Tax (credit)/charge for period 27,827 54,767
---------------------------------------------- ------------ ----------
Total tax losses carried forward on which
no DTA has been recognized 2,660,796 1,175,112
============ ==========
The Group has tax losses available to be carried forward and
used against trading profits arising in future periods of
GBP2,660,796 (2020: GBP1,175,112). A deferred tax asset of
GBP532,159 (2020: GBP235,022) calculated at a weighted average rate
of 20% has not been recognised in respect of the tax losses carried
forward on the basis that there is insufficient certainty over the
level of future profits to utilise against this amount.
11. Earnings per share
Basic and diluted
Earnings per share is calculated by dividing the loss
attributable to the equity holders of the Company by the weighted
average number of Ordinary shares in issue during the period.
2021 2020
Continuing operations:
-------------------------------------------- ------------ -----------
Loss attributable to equity holders of
the Company (GBP) (1,694,632) (912,742)
Weighted average number of ordinary shares
in issue 64,883,546 59,756,437
============================================ ============ ===========
Loss per share (pence) (2.61) (1.53)
-------------------------------------------- ------------ -----------
2021 2020
Diluted number of ordinary shares in issue 71,357,375 59,756,437
============================================ =========== ===========
Given the loss for the year, the diluted earnings per share was
the same as basic earnings per share as this would otherwise be
dilutive.
12. Intangible Assets
Group Exploration assets
Cost GBP
At 1 April 2019 3,902,234
Additions 135,766
Impairment (346,756)
At 1 April 2020 3,691,243
Additions -
Forex Change 8,889
------------------- -------------------
At 31 March 2021 3,682,354
------------------- -------------------
Accumulated amortisation
At 1 April 2019 -
Charge for the year -
At 1 April 2020 -
Charge for the year -
-------------------------- ----------
At 31 March 2021 -
Net book value
At 1 April 2019 3,902,234
At 1 April 2020 3,691,243
At 31 March 2021 3,682,354
--------------------------- ----------
Intangible assets comprise exploration and evaluation costs.
Exploration and evaluation assets are all internally generated,
except for those acquired at fair value as part of a business
combination.
Exploration and evaluation assets have no useful economic life
per IFRS 6 and are tested for impairment annually.
13. Investments
Company Shares in group undertaking
Cost GBP
At 1 April 2019 3,539,448
At 1 April 2020 3,539,448
At 31 March 2021 3,539,448
------------------- -----------------------------
Net book value
================== =============================
At 1 April 2019 3,539,448
=================== =============================
At 1 April 2020 3,539,448
------------------- -----------------------------
At 31 March 2021 3,539,448
------------------- -----------------------------
The Company's investments at the Statement of Financial Position
date in the share capital of companies include the following:
Subsidiaries
Tirupati Resources Mauritius
Registered: C/o Alliance Financial Services Ltd, Level 2, Standard
Chartered Tower, Cybercity, Ebene, Republic of Mauritius
Nature of business: Holding and administrative
entity
%
---------------------------------------------------------- ----------
Class of share Holding
Ordinary shares 100*
---------------------------------------------------------- ----------
*Tirupati Resources Mauritius is liquidated on 28(th) May 2021
and the shares are transferred to Tirupati Graphite Plc
Tirupati Madagascar Ventures
Registered: Mining Business Center, Box No - 5, Lot K 7, Mamory,
Ivato, Antananarivo 105, Madagascar
Nature of business: Evaluation and exploration
of mining operations
%
--------------------------------------------------- ---------------
Class of share Holding
Ordinary shares 98*
--------------------------------------------------- ---------------
*indirectly through Tirupati Resources Mauritius. Tirupati
Resources Mauritius was liquidated on 28(th) May 2021 and the
shares have been transferred to Tirupati Graphite Plc
Establissements Rostaing
Registered: Lot II N 95 SB BIS E, Ambatobe, Antananarivo 103,
Madagascar
Nature of business: Graphite mining extraction
%
-------------------------------------------------- -------------
Class of share Holding
Ordinary shares 100*
-------------------------------------------------- -------------
* 95% held indirectly by Tirupati Resources Mauritius. Tirupati
Resources Mauritius is liquidated on 28(th) May 2021 and the shares
are transferred to Tirupati Graphite Plc
14. Property, plant and equipment
Group Plant and Infrastructure Assets under Development Total
Machinery & Fixtures construction costs
GBP GBP GBP GBP
------------------ ----------- ----------------- -------------------- -------------------- --------------------
Cost
=========== ================= ==================== ==================== ====================
At 1 April 2019 773,167 82,518 219,561 220,400 1,295,646
=========== ================= ==================== ==================== ====================
Additions 476,457 34,301 138,762 323,809 973,329
------------------ ----------- ----------------- -------------------- -------------------- --------------------
At 1 April 2020 1,249,624 116,819 358,323 544,209 2,268,975
=========== ================= ==================== ==================== ====================
Additions 735,950 294,976 217,210 - 1,248,136
=========== ================= ==================== ==================== ====================
Reclassification - - 544,209 (544,209) -
=========== ================= ==================== ==================== ====================
At 31 March
2021 1,985,574 411,795 1,119,742 - 3,517,111
------------------ ----------- ----------------- -------------------- -------------------- --------------------
Accumulated depreciation and impairment
At 1 April 2019 151,263 9,977 - - 161,240
=========== ================= ==================== ==================== ====================
Depreciation 103,098 24,002 - - 127,100
------------------ ----------- ----------------- -------------------- -------------------- --------------------
At 1 April 2020 254,361 33,979 - - 288,340
=========== ================= ==================== ==================== ====================
Depreciation 146,893 58,830 - - 205,723
=========== ================= ==================== ==================== ====================
At 31 March
2021 401,254 92,809 - - 494,063
------------------ ----------- ----------------- -------------------- -------------------- --------------------
Carrying amount
=========== ================= ==================== ==================== ====================
As at 1 April
2020 995,263 82,840 358,323 544,209 1,980,635
------------------ ----------- ----------------- -------------------- -------------------- --------------------
As at 31 March
2021 1,584,320 318,986 1,119,742 - 3,023,048
------------------ ----------- ----------------- -------------------- -------------------- --------------------
Company Assets under Total
construction
GBP GBP
-------------------------------------------------- -------------------- -------------------- --------------------
Cost GBP
==================== ==================== ====================
At 1 April 2019 220,400 220,400
==================== ==================== ====================
Additions 323,809 323,809
-------------------------------------------------- -------------------- -------------------- --------------------
At 1 April 2020 544,209 544,209
==================== ==================== ====================
Transfer to Subsidiary (339,578) (339,578)
==================== ==================== ====================
At 31 March 2021 204,631 204,631
-------------------------------------------------- -------------------- -------------------- --------------------
At 1 April 2019 - -
==================== ==================== ====================
Depreciation - -
-------------------------------------------------- -------------------- -------------------- --------------------
At 1 April 2020 - -
==================== ==================== ====================
Depreciation - -
==================== ==================== ====================
At 31 March 2021 - -
-------------------------------------------------- -------------------- -------------------- --------------------
-
==================== ==================== ====================
Carrying amount
==================== ==================== ====================
As at 1 April 2020 544,209 544,209
-------------------------------------------------- -------------------- -------------------- --------------------
As at 31 March 202! 204,631 204,631
-------------------------------------------------- -------------------- -------------------- --------------------
15. Trade and other receivables
Group Company
2021 2020 2021 2020
GBP GBP GBP GBP
Trade receivables 721,534 208,476 566,646 208,476
Other debtors 381,334 217,693 87,846 103,764
Amounts owed by group
undertakings - - 4,893,314 2,397,588
Prepayments - 7,887 - -
1,102,868 409,309 5,547,806 2,709,828
----------------------- ---------- -------- ---------- ----------
In the Directors' opinion, the carrying amounts of receivables
is considered a reasonable approximation of fair value. The Group
monitors on a monthly basis the receivable balance and makes
impairment provisions when debt reaches a certain age. There are no
significant known risks as at 31 March 2021.
16. Inventories
Group
2021 2020
Cost and net book value GBP GBP
Raw materials and consumables 222,352 57,600
Finished and semi-finished goods 26,160 92,505
Goods in Transit 212,580 -
461,092 150,105
---------------------------------- -------- --------
17. Trade and other payables
Current:
Group Company
2021 2020 2021 2020
GBP GBP GBP GBP
Trade payables 403,361 272,407 146,213 135,362
Social security and other
taxes 3,422 25,044 - 25,044
Other payables - 11,229 - 5,770
Amounts due from group - - 35,077 163,566
Accruals 38,490 119,191 38,490 103,613
445,273 427,871 219,780 433,355
--------------------------- -------- -------- -------- --------
In the Directors' opinion, the carrying amount of payable is
considered a reasonable approximation of fair value.
Non-current:
Group Company
2021 2020 2021 2020
GBP GBP GBP GBP
Director's remuneration - 632,015* - 632,015
=========================== ======= ========= ===== ========
Management Salary Payable - 147,606 - 147,606
=========================== ======= ========= ===== ========
Lease liability 23,864 37,767 - -
--------------------------- ------- --------- ----- --------
23,864 817,388 - 779,621
--------------------------- ------- --------- ----- --------
*In 2020 it was considered as Non-Current as payment was
deferred till successful capital raise through public issue. Due to
the uncertain nature of this activity the company thought it was
prudent to treat it as Non-current.
18. Provisions
No provisions have existed within the financial year or persist
at year end.
19. Borrowings
During this financial year the Company raised further GBP513k
through a convertible loan note instrument ("CLN"). In the year
ended 31(st) March 2021, CLNs GBP40k were converted in the equity.
Interest on the CLN is chargeable at 12%.
2021 2020
----------------------- ---------- --------
Within one year - -
Between 2 and 5 years 1,283,000 810,000
----------------------- ---------- --------
1,283,000 810,000
----------------------- ---------- --------
The loan notes shall be redeemed by the Company, at any time
after the first anniversary of an Initial Public Offering up to the
Maturity Date or by the Noteholder or the Company, on the Maturity
Date being the 31 May 2022.
Conversion can be made 15 Business Days after the date of
completion of a successful Initial Public Offering to convert all
of the Notes outstanding into fully paid Ordinary Shares at a price
equal to the price per Share paid by investors participating in the
Initial Public Offering.
20. Share capital
2021 2021 2020 2020
Number GBP Number GBP
========================= =========== ========== =========== ==========
Allotted, called up and
fully paid
Ordinary shares of 2.5p
each 74,843,323 1,871,084 59,925,243 1,498,131
Shares were issued during the year as follows:
Cost of issue Number of shares
(GBP) issued
--------------------------------- -------------- -----------------
Shares issued from a placing on
15 July 2020 - 995,757
Shares issued from a placing on
04 August 2020 - 500,100
============== =================
Shares issued from a placing on
14 December 2020 967,103 13,333,334
============== =================
Shares issued from a placing on
26 January 2021 - 88,889
============== =================
967,103 14,918,080
-------------- -----------------
21. Share based payments & warrant reserve
During the first two years after incorporation of the Company,
with the consent of its Board and senior management team, the
Company adopted a minimal approach to incentives and provided no
bonuses to the executive management team or the Board. However, to
show the appreciation of the Company, the Board was provided with
an annual incentive package in the form of warrants to subscribe
for equity shares of the Company at a premium to the prices at
which Ordinary Shares have been subscribed when the Company raised
equity in the relevant period. The Company has also provided broker
warrants to Optiva, on a success basis, for the fundraising
activities executed by it prior to Admission. In addition to this,
the Company has also issued warrants to some CLN subscribers for
funds raised before admission of the Company to the LSE.
All warrants are equity-settled, in accordance with IFRS 2, by
award of warrants to acquire ordinary shares or award of ordinary
shares. The fair value of these awards has been calculated at the
date of grant of the award. The fair value of the warrants granted
was calculated using a Black-Scholes model. Changes in the
assumptions can affect the fair value estimate of a Black-Scholes
model.
Following are the key assumptions used to estimate the fair
value of the warrants issued:
a) Expected Volatility: 20%
b) Contractual Life of the warrant: 3 years
c) Risk free interest rate: 0.38% p.a.
Following warrants over ordinary shares have been granted by the
Company and are outstanding as on 31 March 2021:
Number of warrants
Expiry Date Exercise Price exercisable and
Grant Date (GBP) outstanding
31 December 2017 30 June 2021 0.300 1,000,000
------------------ ----------------- -------------------
13 September 2018 13 November 2021 0.200 376,509
------------------ ----------------- -------------------
31 December 2018 31 December 2021 0.400 1,520,000
------------------ ----------------- -------------------
31 March 2019 31 March 2022 0.400 480,000
------------------ ----------------- -------------------
31 December 2019 31 December 2022 0.400 1,620,000
------------------ ----------------- -------------------
26 February 2020 26 February 2023 0.675 36,000
------------------ ----------------- -------------------
31 March 2020 31 March 2023 0.400 960,000
------------------ ----------------- -------------------
15 June 2020 15 June 2023 0.675 222,222
------------------ ----------------- -------------------
15 June 2020 15 June 2023 0.900 222,222
------------------ ----------------- -------------------
30 June 2020 30 June 2023 0.675 22,800
------------------ ----------------- -------------------
16 July 2020 12 August 2022 0.525 41,143
------------------ ----------------- -------------------
14 December 2020 14 December 2023 0.450 170,329
------------------ ----------------- -------------------
14 December 2020 14 December 2023 0.675 113,553
------------------ ----------------- -------------------
Total 6,784,778
-------------------
Though the Company had committed to provide these warrants to
the parties mentioned in the table below since financial year
2017-18, the warrant instrument under which these warrants are
approved was finalized and formally approved by the board in the
current financial year the warrant reserve was created first time
in the current financial year, as the charge relating to previous
periods was immaterial to the Company.
Number of Warrant reserve
warrants GBP
Warrants issued to outstanding
Brokers 760,334 16,457
Members of the Board & executive management 5,580,000 68,739
CLN Investors 444,444 45,361
Total 6,784,778 130,557
--------------------------------------------- ------------- ----------------
22. Financial instruments
Financial risk management
The Group has exposure to the following risks from its use of
financial instruments:
-- Capital risk management
-- Market risk
-- Credit risk
-- Liquidity risk
-- Currency risk
This note presents information about the Group's exposure to
each of the above risks, the Group's management of capital, and the
Group's objectives, policies and procedures for measuring and
managing risk.
The Board of Directors has overall responsibility for the
establishment and oversight of the Group's risk management
framework.
The Group's risk management policies are established to identify
and analyse the risks faced by the Group, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits.
Risk management policies and systems are reviewed regularly to
reflect changes in market conditions and the Group's
activities.
The Group Audit Committee oversees how management monitors
compliance with the Group's risk management policies and procedures
and reviews the adequacy of the risk management framework in
relation to the risks faced by the Group.
Capital risk management
The Group manages its capital to ensure that entities in the
Group will be able to continue as a going concern while maximising
the return to stakeholders as well as sustaining the future
development of the business. In order to maintain or adjust the
capital structure, the Group may adjust dividends paid to
shareholders, return capital to shareholders, issue new shares or
sell assets to reduce debt.
The capital structure of the Group consists of net debt, which
includes loans, cash and cash equivalents, and equity attributable
to equity holders of the parent, comprising issued capital and
retained earnings.
Fair value of financial assets and liabilities
Valuation, Book value Fair value Book value Fair value
Methodology 2021 2021 2020 2020
and hierarchy GBP GBP GBP GBP
========================= =============== =========== =========== =========== ===========
Financial assets
Cash and cash
equivalents (a) 1,644,189 1,644,189 46,640 46,640
Loans and receivables,
net of impairment (a) 720,628 720,628 409,309 409,309
========================= =============== =========== =========== =========== ===========
Total at amortised
cost 2,364,817 2,364,817 455,949 455,949
========================================== =========== =========== =========== ===========
Financial liabilities
Trade and other
payables (a) 448,633 448,633 1,245,259 1,245,259
Borrowings and
provisions (a) 1,283,000 1,283,000 810,000 810,000
Lease Liabilities (a) 23,864 23,864
Total at amortised
cost 1,755,497 1,755,497 2,055,259 2,055,259
------------------------------------------ ----------- ----------- ----------- -----------
Valuation, methodology and hierarchy
(a) The carrying amounts of cash and cash equivalents, trade and
other receivables, trade and other payables and deferred income,
and Borrowings are all stated at book value. All have the same fair
value due to their short-term nature.
Market risk
Market price risk arises from uncertainty about the future
valuations of financial instruments held in accordance with the
Group's investment objectives. These future valuations are
determined by many factors but include the operational and
financial performance of the underlying investee companies, as well
as market perceptions of the future of the economy and its impact
upon the economic environment in which these companies operate.
Credit risk
Credit risk is the risk that counterparties to financial
instruments do not perform their obligations according to the terms
of the contract or instrument. The Group is exposed to counterparty
credit risk when dealing with its customers and certain financing
activities.
The immediate credit exposure of financial instruments is
represented by those financial instruments that have a net positive
fair value by counterparty at 31 March 2021. The Group considers
its maximum exposure to be:
2021 2020
GBP GBP
Financial assets
Cash and cash equivalents 1,644,189 46,640
Loans and receivables, net of impairment 1,102,868 409,309
------------------------------------------ ---------- --------
2,747,058 455,949
------------------------------------------ ---------- --------
All cash balances are held with an investment grade bank who is
our principal banker. Although the Group has seen no direct
evidence of changes to the credit risk of its counterparties, the
current focus on financial liquidity in all markets has introduced
increased financial volatility. The Group continues to monitor the
changes to its counterparties' credit risk.
Liquidity risk
Liquidity risk is the risk the Group will encounter difficulty
in meeting its obligations associated with financial liabilities as
they fall due. The Board are jointly responsible for monitoring and
managing liquidity and ensures that the Group has sufficient liquid
resources to meet unforeseen and abnormal requirements. The current
forecast suggests that the Group has sufficient liquid
resources.
Available liquid resources and cash requirements are monitored
using detailed cash flow and profit forecasts these are reviewed at
least quarterly, or more often as required. The Directors decision
to prepare these accounts on a going concern basis is based on
assumptions which are discussed in the going concern note
above.
The following are the contractual maturities of financial
liabilities:
Carrying Contractual 6 months 6 to 12 1 to 2 2 to 5
amount cash flows or less months years years
31 March
2021 GBP GBP GBP GBP GBP GBP
Non-derivative
financial
liabilities
Trade and
other payables 445,273 - 445,273 - - -
Borrowings 1,283,000 - - - - 1,283,000
Cash flow management
The Group produces an annual budget which it updates quarterly
with actual results and forecasts for future periods for profit and
loss, financial position and cash flows. The Group uses these
forecasts to report against and monitor its cash position. If the
Group becomes aware of a situation in which it would exceed its
current available liquid resources, it would apply mitigating
actions involving reduction of its cost base. The Group would also
employ working capital management techniques to manage the cash
flow in periods of peak usage.
Currency risk
The Group operates internationally and is exposed to foreign
exchange risk. Foreign exchange risk arises from future commercial
transactions and recognised assets and liabilities denominated in a
currency that is not the functional currency of the relevant Group
entity. The Group's primary currency exposure is to US Dollar,
which is the currency of all intra-group transactions as well as
denomination of selling price of the products. The group also has
some exposure to Malagasy ariary due to its operating subsidiaries
in Madagascar.
Considering the natural hedge available the Group currently
doesn't hedge the currency risk. The Group's and Company's exposure
to foreign currency risk at the end of the reporting period is
summarised below. All amounts are presented in GBP equivalent.
USD MGA USD MGA
Group 2021 2021 2020 2020
GBP GBP GBP GBP
Cash and cash equivalents 90,236 66,118 49,519 2,574
Trade & other receivables 522,400 489,622 354,214 95,255
Trade & other payables (151,353) (301,816) (163,566) (147,662)
--------------------------- ---------- ---------- ---------- ----------
Net Exposure 461,283 253,924 240,167 (49,833)
--------------------------- ---------- ---------- ---------- ----------
USD USD
Company 2021 2020
GBP GBP
Cash and cash equivalents 3,619 28,475
Loans to subsidiaries 4,893,314 2,353,713
Trade & other receivables 522,400 354,214
Trade & other payables (151,353) (163,566)
--------------------------- ---------- ----------
Net Exposure 5,267,980 2,572,836
--------------------------- ---------- ----------
Sensitivity Analysis
As shown in the table above, the Group is primarily exposed to
changes in the GBP:USD & GBP:MGA exchange rates. The table
below shows the impact in GBP on pre-tax profit and loss of a 10%
increase/ decrease in the GBP to USD exchange rate, holding all
other variables constant. Also shown is the impact of a 10%
increase/decrease in the GBP to MGA exchange rate, being the other
primary currency exposure.
2021 Group Company
GBP GBP
GBP:USD exchange rate increases by 10% 532 53,071
GBP:USD exchange rate decreases by 10% (592) (64,864)
GBP:MGA exchange rate increases by 10% (51,402) -
GBP:MGA exchange rate decreases by 10% 57,183 -
2020 Group Company
GBP GBP
GBP:USD exchange rate increases by 10% 934 22,055
GBP:USD exchange rate decreases by 10% (1,031) (45,453)
GBP:MGA exchange rate increases by 10% (36,223) -
GBP:MGA exchange rate decreases by 10% 40,034 -
23. Related party transactions
Tirupati Carbons and Chemical Pvt Limited (TCCPL) is an entity
incorporated in India. The Company is connected to TCCPL in that
both Shishir Poddar and Hemant Poddar were both directors and
shareholders of TCCPL during the year. At year end, included within
debtors was an amount of Nil (2020: GBP135,005) and revenue
recorded for the year of GBP46,090 (2020: GBP101,659) from
TCCPL.
Tirupati Speciality Graphite Private Limited (TSG) is an entity
incorporated in India. The Company is connected to TSG in that both
Shishir Poddar and Hemant Poddar were both directors and
shareholders of TSG during the year. At year end, a net amount was
receivable of GBP250,656 (2020 - GBP73,723) and revenue of
GBP238,602 (2020 - GBP291,662) from TSG.
Haritmay Ventures LLP (HV) is an entity incorporated in India
and engaged in manufacturing proprietary tailor made flake graphite
processing machinery and equipment which the Company uses in its
projects. The Company is connected to HV in that Shishir Poddar is
partner and shareholder of HV during the year. At year end, a net
amount was receivable of GBP72,552 (2020 - Nil) and revenue of Nil
(2020 - Nil) from HV.
Optiva Securities Limited is an entity incorporated in the
United Kingdom. The Company is a stock brokerage firm connected to
the Company being the sole broker of the Company and Christian
Gabriel St.John-Dennis one of the directors of the Company and
holding a position with Optiva Securities Limited during the year.
At year end, the Company incurred brokerage and consultancy fees,
business development fees of GBP378,402 (2020- GBP50,894).
24. Events after the reporting period
In April 2021, the Company completed a placing of 11,111,111
ordinary shares of GBP0.025 each in the Company at a price of
GBP0.90 per share with institutional and other investors to raise
an aggregate gross amount of GBP10 million (the "Placing"). The net
proceeds of the Placing will primarily be used to expedite and
accelerate the Company's modular MTDP.
In September 2021 the Company commissioned its second flake
graphite mining and processing facility at the Vatomina project
increasing its installed capacity from 3,000 tpa to 12,000 tpa.
This shall materially change the Company's trading position.
In June 2021, the Group decided to dissolve the intermediary
company - Tirupati Resources Mauritius in Mauritius and bring the
Madagascan subsidiaries directly under Tirupati Graphite Plc. This
will reduce administrative costs and management time the Group
needed to spend to keep this holding company floating.
In August 2021, the Company entered into a binding agreement
subject to certain conditions precedent, for acquisition of
Mozambique based graphite projects from ASX listed Battery Minerals
Limited. The consideration payable by the Company on completion is
a total sum of AU$ 12.5 million of which AU$ is to be settled in
cash and AU$11.5 in ordinary shares of the Company. The Acquisition
is subject, amongst other things, to the mandatory shareholder
approval of Battery Minerals and approval of the transaction by the
Ministry of Mineral Resources and Energy in Mozambique.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
** ENDS **
For further information, please visit www.tirupatigraphite.co.uk
or contact:
Tirupati Graphite Plc
Puruvi Poddar +44 (0) 20 3984 9894
Optiva Securities Limited (Broker)
Daniel Ingram +44 (0) 20 3137 1902
----------------------------
St Brides Partners Ltd (Financial PR) info@stbridespartners.co.uk
Isabel de Salis / Oonagh Reidy
----------------------------
Notes
Tirupati Graphite Plc is a revenue-generating, multi-asset,
multi-jurisdictional, fully integrated producer and developer of
high-grade natural flake graphite, speciality graphite and graphene
and graphene enhanced advanced materials. With a unique set of
properties, graphite has diverse applications with multiple growth
streams and graphene forms the new generation of 2D and advanced
materials. The Company places a special emphasis on "green"
applications, including renewable energy and energy efficiency,
energy storage, thermal management, and advanced materials
development, and is committed to ensuring its operations are
sustainable as well.
The Company's operations include primary mining and processing
in Madagascar, where the Company operates two key projects,
Sahamamy and Vatomina; 12,000 tpa of high-quality flake graphite
concentrate with up to 96% purity is the current capacity of these
projects and flake graphite being produced is sold to customers
globally. The projects are under staged development and total
capacity is planned to increase to 84,000 tpa by 2024 as per the
Company's modular medium-term development plan.
In India, through Tirupati Speciality Graphite Private Limited
('TSG'), with whom the Company has a binding acquisition agreement
subject to regulatory approvals, Tirupati is developing a suite of
speciality graphite for use in hi-tech applications like
lithium-ion batteries, fire retardants, thermal management, and
composites. Its current operations include the 1,200 tpa Patalganga
Project, focused on manufacturing the Company's trademarked
expandable graphite products CARBOFLAMEX(R) and GrafEN 45545(TM).
TSG is further developing 30,000 tpa specialty graphite project in
two equal size modules and has developed unique green processing
technologies for manufacturing these advanced materials.
TSG is also developing the Tirupati Graphene and Mintech
Research Centre ('TGMRC'), a state-of-the-art R&D centre
focussed on manufacturing graphene, developing its applications and
advanced materials using graphene, and further providing
environmentally friendly technologies consultancy for mineral
processing. Commercial operations commenced in July 2021 having
completed Stage 1 of the centre's development plan.
This information is provided by RNS, the news service of the
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END
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Tirupati Graphite (LSE:TGR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Tirupati Graphite (LSE:TGR)
Historical Stock Chart
From Jul 2023 to Jul 2024
