REG - Indus Gas Limited - Annual Financial Report
29/09/2022 07:01
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RNS Number : 0690B Indus Gas Limited 29 September 2022
Indus Gas Limited
("Indus" or the "Company")
Audited final
results for the 12 months ended 31 March 2022
Indus Gas Limited (AIM:INDI), an oil & gas exploration and development
company with assets in India, announces its full year results for the 12
months to 31 March 2022.
Highlights
§ The production and sale of gas started from a small area in the SSG and SSF
field in the year 2021.
§ New development wells tested rich Gas with low CO2.
§ PNGRB is evaluating the options for pipelines infrastructure/route for
evacuation of the gas from the block.
§ As announced post year end, the gas price for RJ-ON/6 block effective from
1 April 2022 has been agreed to be as per the domestic gas price on Gross
Calorific Value (GCV) basis as notified by petroleum planning and analysis
cell of the Government of India. The floor price will continue to US$ 4.5146
per MMBTU on GCV being the existing price of US$ 5 per MMBTU on Net Calorific
Value (NCV) basis. The gas price revision has resulted in the gas price being
revised to US$ 6.1 per MMBTU on GCV basis from 1 April 2022 to 30 September
2022 resulting in price increase of about 35% on the gas price for the year
2021 -22.
OPERATIONAL
§ Preparations continued on site during the year for the planned ramp up in
production, including the drilling of additional wells.
§ Drilling and completion of production wells for the SGL field development
continued as planned to meet the planned gas sale requirements.
§ Continued testing of previously drilled wells.
FINANCIAL
§ Total Revenues were US$ 53.71 million (2020-21: US$ 48.53 million).
§ Operating profit Increased to US$ 45.94 million (2020-21: increased to US$
44.48 million).
§ Profit before tax Increased to US$ 45.96 million (2020-21: US$ 44.08
million).
§ Net Investments made in property, plant and equipment amounting to US$
68.27 million (2020-21: US$ 100.26 million).
All repayments under the existing debt terms were made on a timely basis.
For further information please contact:
Indus Gas Limited
Jonathan
Keeling
+44 (0) 20 8133 3375
Strand Hanson Limited (Nominated and Financial Adviser)
Ritchie Balmer, Rory
Murphy
+44 (0) 20 7409 3494
Arden Partners plc (Broker)
Equity Sales: James
Reed-Daunter
+44 (0) 20 7614 5900
Overview
Indus Gas Limited ("Indus" or "Company") is engaged in oil and gas exploration
and development in Block RJ-ON/6, Rajasthan, India. Indus through its
subsidiaries owns a 63% participating interest in SGL gas field and 90%
participating interest in SSG and SSF field. Other partners in the block are
(i) Focus Energy Ltd., which operates the Block, and (ii) Oil and Natural Gas
Corporation (ONGC), India, which is the licensee of the Block. The
'Participative Interest' of Indus as mentioned above is held through its
wholly owned subsidiaries iServices Investment Limited, Mauritius and Newbury
Oil Company Limited, Cyprus. The Block currently measures an area of 2,176 sq.
km and lies onshore in the highly prospective mid Indus Basin. The first
discovery in the Block was made in 2006 and the first commercial production
commenced in 2010. The Company has received approval from the Directorate
General of Hydrocarbons (DGH) and government for the integrated Field
Development Plan ("FDP") of SSG (Pariwar) & SSF (B&B) discoveries and
for enhancement of production from the SGL field. Production has started from
a small area in the SSG and SSF field in the year 2021. The Petroleum &
Natural Gas Regulatory Board (PNGRB) is evaluating options for pipeline
infrastructure/route for evacuation of the gas from these fields.
Chairman's Statement
This has been an encouraging year on account of the start of production from a
small area in the SSG and SSF fields.
The Company's strong operational and financial performance is highlighted by
another year of good profit generation and the Board continues to anticipate a
substantial increase in revenues once the connectivity to national grid is
achieved. The Board is very pleased to have achieved the price increase with
GAIL. Further, there is no significant impact of the Russia-Ukraine crisis as
the group has been able to secure a gas price increase.
The Board would like to thank their employees, shareholders, bankers and all
other stakeholders for their loyalty and continued support. The safety and
well-being of our employees and all the workers on-site at the RJ-ON/6 Block
is our number one priority and despite the current challenges posed by the
coronavirus pandemic, the management team will continue to focus on the
execution of the Company's long-term strategy of achieving both growth in
reserves and commercial production. The Indian government continues to
prioritize the increase of domestic gas production to make India Self-reliant
thereby reducing the dependence on expensive imported energy and enhancing
energy security.
Jonathan Keeling
Chairman
Board of Director's Review
We are pleased to announce another strong year of consolidated total revenues
totaling US$ 53.71 million (2020-21: US$ 48.53 million). We continued to have
good operating profits and our stated long-term business plan remains on
track. The revised Field Development Plan for the SGL area and an integrated
Field Development Plan for SSG & SSF area of the Block, for the future
enhancement of revenues, had been previously approved by the Management
Committee. Production of gas from small area of SSG and SSF field of the block
has started in 2021. PNGRB is evaluating options for pipeline infrastructure/
route for evacuation of gas from these fields
Operations
Operational activities over the last year have followed the Group's objectives
and are summarized below:
a) drilling of additional wells to support the integrated field
development plan;
b) drilling and completion of production wells for the SGL, SSG and SSF
field development continued;
c) testing various wells previously drilled where gas shows were
encountered to enable the Group to increase its reserve base; and
d) testing the B&B gas recovery potential in addition to gas
discovered in the Pariwar formation.
The current drilling programme is progressing on schedule and producing
positive results. Following the approval of the FDP for SSG & SSF
Development area, we continue to test concepts and obtain log and core data
for analysis outside of the SGL area. In the SGL area, work continues to
increase our knowledge of the producing intervals. Additional testing is an
important element of the operational programme to enhance production and
maximize recovery of gas through efficient asset management. Activities such
as these will continue to increase as we obtain and act on new data and
production history. An important development in respect of the SGL Field was
the discovery of new intervals within Pariwar. These were located below the
existing producing P10 sands. These reservoirs were successfully exploited for
production and going forward will add to the reserves and production from both
existing and new wells.
Financials
During the financial year, the Company achieved total revenue of US$ 53.71
million (2020-21: US$ 48.53 million), resulting in reported operating profit
of US$ 45.94 million (2020-21US$ 44.48 million). The reported profit after tax
was US$ 35.21 million (2020-21 US$ 27.93 million).
While the Company is not expected to pay any significant taxes on its income
for many years in view of the 100% deduction allowed on the capital expenses
incurred in the Block, the Company has accrued a deferred tax liability of US$
10.75 million (2020-21: US$ 16.15 million) as per IFRS
requirements.
Post this deferred tax liability provision, the net profit for the year was
US$ 35.21 million.
The net expenditure on the purchase of property, plant & equipment was US$
68.27 million (2020-21: US$ 100.26 million). The property plant and equipment,
including development assets and production assets, increased to US$
1,149.22million (2020-21: US$ 1080.95 million).
The current assets (excluding cash) as of 31 March 2022 stood at US$ 149.97
million (2020-21: US$ 165.88 million), which majorly includes US$ 9.46 million
(2020-21: US$ 8.54 million) of inventories, US$ 120.41 million (2020-21: US$
124.39 million) of receivables from related party and US$ 20.11 million
(2020-21: US$ 32.95 million) of trade and other receivables. Receivables of
US$ 16.64 million of this total of US$ 20.11 million have been realized
subsequent to 31 March 2022. The current liabilities of the Company, excluding
the related party liability of US$ 0.35 million (2020-21: US$ 0.35 million)
and current portion of long-term debt of US$ 172.75 million (2020-21: US$
24.49 million), stood at US$ 6.58 million (2020-21: US$ 8.96 million). This
comprised mainly of deferred revenue of US$ 5.08 million (2020-21: US$ 5.08
million) (GAIL-Take or Pay Obligation) and other liabilities of US$ 1.50
million (2020-21: US$ 3.89 million).
As of 31 March 2022, the outstanding debt of the Company to banks was US$
58.32million (2020-21: US$ 78.90 million), of which US$ 19.08 million
(2020-21: US$ 20.92 million) was categorized as repayable within a year and
the remaining US$ 39.24million (2020-21: US$ 57.98 million) has been
categorized as a long-term liability. During the year, the Company repaid an
amount of US$ 20.74 million of the outstanding term loan facilities, as per
the scheduled repayment plan. As of 31 March 2022, the outstanding unsecured
debt from bonds was US$ 153.67 million (2020-21: US$ 153.55 million), of which
US$ 153.67 million (2020-21: US$ 3.57 million) was categorized as repayable
within a year and the remaining US$ Nil (2020-21: US$ 149.98 million) has been
categorized as a long-term liability.
Outlook
During the next twelve months, we expect that the Company will be able to
achieve higher revenue and look forward to continued drilling success in both
Pariwar and B&B combined with making further progress on the
commercialization of our gas reserves.
Jonathan Keeling
Director
Consolidated Statement of Financial Position
(All amounts in United States Dollars, unless otherwise stated)
Note 31 March 2022 31 March 2021
ASSETS
Non-current assets
Property, plant and equipment 7 1,149,223,672 1,080,954,065
1,213,986 916,330
549 567
Tax assets
Other assets
Total non-current assets 1,150,438,207 1,081,870,962
Current assets
Inventories 10 9,459,753 8,538,264
Trade and other receivables 11 20,105,840 32,954,081
Prepayments to related party 16 120,408,124 124,394,123
Cash and cash equivalents 12 4,452,010 995,765
Total current assets 154,425,727 166,882,233
Total assets
1,304,863,934 1,248,753,195
LIABILITIES AND EQUITY
Shareholders' equity
Share capital 13 3,619,443 3,619,443
Additional paid-in capital 13 46,733,689 46,733,689
Currency translation reserve 13 (9,313,782) (9,313,782)
Merger reserve 13 19,570,288 19,570,288
Retained earnings 13 251,953,802 216,743,618
Total shareholders' equity 312,563,440 277,353,256
Liabilities
Non-current liabilities
Long term debt, excluding current portion 14 39,239,735 207,959,625
Provision for decommissioning 15 1,987,325 1,912,427
Deferred tax liabilities (net) 8 120,398,433 109,653,312
Payable to related parties, excluding current portion 16 625,442,503 592,508,798
Deferred revenue 18 25,563,995 25,563,995
Total non-current liabilities 812,631,991 937,598,157
Current liabilities
Current portion of long-term debt 14 172,747,343 24,490,194
Current portion payable to related parties 16 345,105 349,019
Trade and other payables 17 1,498,969 3,885,483
Deferred revenue 18 5,077,086 5,077,086
Total current liabilities 179,668,503 33,801,782
Total liabilities 992,300,494 971,399,939
Total equity and liabilities 1,304,863,934 1,248,753,195
(The accompanying notes are an integral part of these consolidated financial
statements)
These consolidated financial statements were approved and authorized for issue
by the board on 27 September 2022 and was signed on its behalf by:
Jonathan Keeling
Chairman
Consolidated Statement of Comprehensive Income
(All amounts in United States Dollars, unless otherwise stated)
Note Year ended Year ended
31 March 2022 31 March 2021
Revenues 18
53,709,538 48,526,007
Cost of sales (6,844,856) (2,893,101)
Gross profit 46,864,682 45,632,906
Cost and expenses
Administrative expenses (924,699) (1,154,696)
Operating profit 45,939,983 44,478,210
Foreign currency exchange Gain/(loss), net 20 15,322 (401,346) 56
Profit before tax 45,955,305 44,076,864
Income taxes 9
- Deferred tax expense (10,745,121) (16,148,477)
Profit for the year (attributable to the shareholders of the Group) 35,210,184 27,928,387
Total comprehensive income for the year (attributable to the shareholders of 35,210,184 27,928,387
the Group)
Earnings per share 22
Basic 0.19 0.15
Diluted 0.19 0.15
(The accompanying notes are an integral part of these consolidated financial
statements)
Consolidated Statement of Changes in Equity
(All amounts in United States Dollars, unless otherwise stated)
Common stock Additional paid in capital Currency translation reserve Merger reserve Retained earnings Total shareholders' equity
No. of shares Amount
Balance as at 1 April 2020 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 188,815,231 249,424,869
Total comprehensive income for the year - - - - - 27,928,387 27,928,387
Balance as at 31 March 2021 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 216,743,618 277,353,256 -
Total comprehensive income for the year - - - - - 35,210,184 35,210,184
Balance as at 31 March 2022 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 251,953,802 312,563,440
(The accompanying notes are an integral part of these consolidated financial
statements)
Consolidated Statement of Cash Flow
(All amounts in United States Dollars, unless otherwise stated)
Year ended ( ) Year ended
31 March 2022 31 March 2021
Cash flow from operating activities ( )
Profit before tax 45,955,305 ( ) 44,076,864
Adjustments ( )
Unrealized exchange loss/(gain) 36,942 ( ) (57,126)
Depreciation 5,834,482 ( ) 1,665,054
Changes in operating assets and liabilities ( )
Inventories (921,489) ( ) (902,843)
Trade receivables 14,573,417 ( ) (6,590,422)
Other current and non-current assets (1,725,158) ( ) (4,473)
Payable to related party-operating activities 6,375,770 ( ) 2,759,207
Provisions for decommissioning 74,898 ( ) 213,218
Accrued expenses and other liabilities (2,390,428) ( ) 844,380
Cash generated from operations 67,813,739 ( ) 42,003,859
Income taxes (paid)/received (320,588) ( ) 1,113,207
Net cash generated from operating activities 67,493,151 ( ) 43,117,066
Cash flow from investing activities ( )
Purchase of property, plant and equipment (22,561,337) ( ) (121,601,484)
Net cash used in investing activities (22,561,337) ( ) (121,601,484)
Cash flow from financing activities ( )
Repayment of long-term debt from banks (20,736,000) (21,168,000)
Proceeds from loans by related parties 17,425,000 ( ) 116,950,000
Repayment of loans by related parties (23,000,000) ( ) -
Payment of interest (15,150,562) ( ) (16,618,465)
Net cash (used)/generated from financing activities (41,461,562) ( ) 79,163,535
Net increase in cash and cash equivalents 3,470,252 ( ) 679,117
Cash and cash equivalents at the beginning of the year 995,765 ( ) 284,619
Effects of exchange differences on cash and cash equivalents (14,007) 32,029
Cash and cash equivalents at the end of the year 4,452,010 ( ) 995,765
(The accompanying notes are an integral part of these consolidated financial
statements)
Notes to Consolidated Financial Statements
(All amounts in United States Dollars, unless otherwise stated)
1. INTRODUCTION
Indus Gas Limited ("Indus Gas" or "the Company") was incorporated in the
Island of Guernsey on 4 March 2008 pursuant to an Act of the Royal Court of
the Island of Guernsey. The Company was set up to act as the holding Company
of iServices Investments Limited. ("iServices") and Newbury Oil Co. Limited
("Newbury"). iServices and Newbury are companies incorporated in Mauritius and
Cyprus, respectively. iServices was incorporated on 18 June 2003 and Newbury
was incorporated on 17 February 2005. The Company was listed on the
Alternative Investment Market (AIM) of the London Stock Exchange on 6 June
2008. Indus Gas through its wholly owned subsidiaries iServices and Newbury
(hereinafter collectively referred to as "the Group") are engaged in the
business of oil and gas exploration, development and production.
Focus Energy Limited ("Focus"), an entity incorporated in India, entered into
a Production Sharing Contract ("PSC") with the Government of India ("GOI") and
Oil and Natural Gas Corporation Limited ("ONGC") on 30 June 1998 for petroleum
exploration and development concession in India known as RJ-ON/06 ("the
Block"). Focus is the Operator of the Block. On 13 January 2006, iServices and
Newbury entered into an interest sharing agreement with Focus and obtained a
65 per cent and 25 per cent share respectively in the Block. The balance of 10
per cent of participating interest is owned by Focus. The participating
interest explained above is subject to any option exercised by ONGC in respect
of individual fields (already exercised for all the wells in SGL field as
further explained in note 3).
2. GENERAL INFORMATION
The consolidated financial statements of the Group have been prepared in
accordance with International Financial Reporting Standards ('IFRS') as
adopted by the European Union ('EU'). The consolidated financial statements
have been prepared on a going concern basis (refer to note 27) and are
presented in United States Dollar (US$). The functional currency of the
Company as well as its subsidiaries is US$.
3. JOINTLY CONTROLLED ASSETS
As explained above, the Group through its subsidiaries-iServices and Newbury
has an "Interest sharing arrangement" with Focus in the block, which under
IFRS 11 Joint Arrangements, is classified as a 'Joint operation'. All rights
and obligations in respect of exploration, development and production of oil
and gas resources under the 'Interest sharing agreement' are shared between
Focus, iServices and Newbury in the ratio of 10 per cent, 65 per cent and 25
per cent respectively.
Under the PSC, the GOI, through ONGC has an option to acquire a 30 per cent
participating interest in any discovered field, upon such successful discovery
of oil or gas reserves, which has been declared as commercially feasible to
develop.
The block is divided into 3 fields - SGL, SSG and SSF.
The SGL field received its declaration of commercial discovery on 21 January
2008. Subsequent to the declaration of commercial discovery in SGL field, ONGC
exercised the option to acquire a 30 per cent participating interest in the
discovered fields on 6 June 2008. The exercise of this option would reduce the
interest of the existing partners proportionately.
However, on exercise of this option, ONGC is liable to pay its share of 30 per
cent of the SGL field development costs and production costs incurred after 21
January 2008 and in order to be entitled to their 30 per cent share in the
production of gas subject to recovery of contract costs as explained below.
The allocation of the production from the field to each participant in any
year is determined on the basis of the respective proportion of each
participant's cumulative unrecovered contract costs as at the end of the
previous year or where there is no unrecovered contract cost at the end of
previous year on the basis of participating interest of each such participant
in the field.
On the basis of the above, gas production for the year ended 31 March 2022
continues to be shared between Focus, iServices and Newbury in the ratio of
10 percent, 65 percent and 25 percent, respectively. ONGC will not be entitled
to any participating interest in the production until the full exploration and
development cost is recovered by other participants.
The aggregate amounts relating to jointly controlled assets, liabilities,
expenses and commitments related thereto that have been included in the
consolidated financial statements are as follows:
31 March 2022 31 March 2021
Non-current assets 1,149,223,672 1,080,954,065
Current 132,932,387
assets
129,867,877
Non-current 19,87,325 1,912,427
liabilities
Expenses (net of finance income) 6,702,159 2,732,049
Commitments NIL NIL
Further, the SSG and SSF field also received its declaration of commerciality
on 24th November 2014. Subsequent to the declaration of commerciality for SSG
and SSF discovery, ONGC did not exercise the option to acquire 30 percent in
respect of SSG and SSF field. The participating interest in SSG and SSF field
between Focus, iServices and Newbury will remain in ratio of 10 percent, 65
percent and 25 percent respectively for exploration, evaluation and
development cost, and production revenue for SSG and SSF in the block.
4. NEW AND AMENDED STANDARDS ADOPTED BY THE GROUP
There are few Standards, interpretations or amendments that have been issued
prior to the date of approval of these financial statements and endorsed by
IASB. Following are the amendments that applicable from financial year
beginning 1 January 2021.
a. Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39, IFRS 7,
IFRS 4 and IFRS 16)
b. COVID-19 Rent Related Concessions beyond 30 June 2021 (Amendments to
IFRS 16)
These amendments do not have a significant impact on the Financial Statements
and therefore the disclosures have not been made.
As at 31 March 2022, the Group held bank loans that reference USD LIBOR which
will have their last LIBOR fixing set before the relevant USD LIBORs ceases
publication on 30 June 2023.
5. STANDARDS AND INTERPRETATIONS ISSUED BUT NOT EFFECTIVE AND YET TO BE
APPLIED BY THE GROUP
A number of new and amended accounting standards and interpretations have been
published that are not mandatory for the Group's accounts ended 31 March 2022,
nor have they been early adopted. These standards and interpretations are not
expected to have a material impact on the Group's consolidated financial
statements:
i. References to the Conceptual Framework
ii. Proceeds before Intended Use (Amendments to IAS 16)
iii. Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS
37, effective from 1 January 2022)
iv. Annual Improvements to IFRS Standards 2018-2020 Cycle (Amendments to
IFRS 1, IFRS 9, IFRS 16, IAS 41, effective from 1 January 2022)
v. Classification of Liabilities as Current or Non-current (Amendments to
IAS 1) (effective from 1 January 2023).
vi. Deferred Tax related to Assets and Liabilities from a single
transaction. (Amendments to IAS 12, effective from 1 January 2023)
6. SUMMARY OF ACCOUNTING POLICIES
The consolidated financial statements have been prepared on a historical
basis, except where specified below. A summary of the significant accounting
policies applied in the preparation of the accompanying consolidated financial
statements are detailed below.
6.1. BASIS OF CONSOLIDATION
The consolidated financial statements include the financial statements of the
parent company and all of its subsidiary undertakings drawn up to 31 March
2022. The Group consolidates entities which it controls. Control exists when
the parent has power over the entity, is exposed, or has rights, to variable
returns from its involvement with the entity and has the ability to affect
those returns by using its power over the entity. Power is demonstrated
through existing rights that give the ability to direct relevant activities,
those which significantly affect the entity's returns.
The Group recognises in relation to its interest in a joint operation:
a. its assets, including its share of any assets held jointly;
b. its liabilities, including its share of any liabilities
incurred jointly;
c. its revenue from the sale of its share of the output
arising from the joint operation;
d. its share of the revenue from the sale of the output by the
joint operation; and
e. its expenses, including its share of any expenses incurred
jointly.
Intra-Group balances and transactions, and any unrealised gains and losses
arising from intra-Group transactions are eliminated in preparing the
consolidated financial statements. Amounts reported in the financial
statements of subsidiaries have been adjusted where necessary to ensure
consistency with the accounting policies adopted by the Group.
Profit or losses of subsidiaries acquired or disposed of during the year are
recognised from the date of control of acquisition, or up to the effective
date of disposal, as applicable.
6.2. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
In preparing consolidated financial statements, the Group's management is
required to make judgments, estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and
liabilities at the date of the financial statement and the reported amounts of
revenues and expenses during the reporting period. Although these estimates
are based on management's best knowledge of current events and actions, actual
results may ultimately differ from those estimates. The management's estimates
for the useful life and residual value of tangible assets, impairment of
tangible and intangible assets and recognition of provision for
decommissioning represent certain particularly sensitive estimates. The
estimates and underlying assumptions are reviewed on an on-going basis.
Revisions to accounting estimates are recognized in the period in which the
estimate is revised if the revision affects only that period or in the period
of the revision and future periods if the revision affects both current and
future periods. Information about significant judgments, estimates and
assumptions that have the most significant effect on recognition and
measurement of assets, liabilities, revenues and expenses is provided in note
26.
6.3. FOREIGN CURRENCIES
The consolidated financial statements have been presented in US$ which is the
functional currency of the Company and the group entities.
Foreign currency transactions are translated into the functional currency of
the respective Group entities, using the exchange rates prevailing at the
dates of the transactions (spot exchange rate).
Functional currency is the currency of the primary economic environment in
which the entity operates. Despite having operations in India, all revenues
are reported and contracts are priced in US dollars.
Monetary assets and liabilities denominated in foreign currencies are
translated at the functional currency spot rates of exchange at the reporting
date. Differences arising on settlement or translation of monetary items and
other foreign currency transactions are recognized in consolidated statement
of comprehensive income.
Non-monetary items measured at historical cost are recorded in the functional
currency of the entity using the exchange rates at the date of the
transaction.
6.4. REVENUE RECOGNITION
In accordance with IFRS 15, Revenue from contracts with customers is
recognised when or as the Company satisfies a performance obligation by
transferring control of a promised good or service to a customer at an amount
that reflects the consideration to which the Company expects to be entitled in
exchange for the sale of products and service, net of taxes on sales,
estimated rebates and other similar allowances.
Sale of gas
The contracts with customers establish, a single performance obligation in
relation to supply of natural gas. The transfer of control of natural gas
coincides with title passing to the customer and the customer taking physical
possession. The whole of the transaction price of the contract is allocated to
supply of natural gas and the revenue has been recognised on point in time
basis when the quantities of natural gas are supplied to the customers.
Take or pay: Any payment received on account of lesser gas volume lifted by
the customer against the 'annual contracted volume 'for which an obligation
exists to make-up such differential gas in subsequent periods is recognised as
Contract Liabilities in the year of receipt. Revenue in respect of take or pay
obligation is recognised when such gas is actually supplied or when the
customer's right to make up is expired, whichever is earlier. For other
contracts, where the Company does not have any obligation to make up such gas
in subsequent period is directly recognised as revenue.
Revenue from technical services
The Company provides technical and commercial feasibility reports to its
customers to assist them in their evaluation of investments in oil and gas
fields. Each report is considered as a separate performance obligation and the
transfer of control of reports coincides with acceptance of reports by the
customer. The price charged for each such report is reflective of its
standalone selling price and the revenue has been recognised on point in time
basis on acceptance of the report by its customers.
6.5. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprises development assets and other
properties, plant and equipment used in the gas fields and for administrative
purposes. These assets are stated at cost plus decommissioning cost less
accumulated depreciation and any accumulated impairment losses.
Development assets are accumulated on a field by field basis and comprise
costs of developing the commercially feasible reserve, expenditure on the
construction, installation or completion of infrastructure facilities such as
platforms, pipelines and other costs of bringing such reserves into
production. It also includes the exploration and evaluation costs incurred in
discovering the commercially feasible reserve, which have been transferred
from the exploration and evaluation assets as per the policy mentioned in note
6.6. As consistent with the full cost method, all exploration and evaluation
expenditure incurred up to the date of the commercial discovery have been
classified under development assets of that field.
The carrying values of property, plant and equipment are reviewed for
impairment when events or changes in circumstances indicate that the carrying
values may not be recoverable.
An item of property, plant and equipment is derecognized upon disposal or when
no future economic benefits are expected from its use or disposal. Any gain or
loss arising on de-recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is
included in the consolidated statement of comprehensive income of the year in
which the asset is derecognized. However, where the asset is being consumed in
developing exploration and evaluation intangible assets, such gain or loss is
recognized as part of the cost of the intangible asset.
The asset's residual values, useful lives and depreciation methods are
reviewed, and adjusted if appropriate, at each period end. No depreciation is
charged on development assets until production commences.
Depreciation on property, plant and equipment is provided at rates estimated
by the management. Depreciation is computed using the straight-line method of
depreciation, whereby each asset is written down to its estimated residual
value evenly over its expected useful life. The useful lives estimated by
the management are as follows:
Extended well test equipment 20 years
Bunk houses 5 years
Vehicles 5 years
Other assets
Furniture and fixture 5 years
Buildings 10 years
Computer equipment 3 years
Other equipment 5 years
Land acquired is recognized at cost and no depreciation is charged as it has
an unlimited useful life.
Production assets are depreciated from the date of commencement of production,
on a field by field basis with reference to the unit of production method for
the commercially probable and proven reserves in the particular field.
Advances paid for the acquisition/ construction of property, plant and
equipment which are outstanding as at the end of the reporting period and the
cost of property, plant and equipment under construction before such date are
disclosed as 'Capital work-in-progress'.
6.6. EXPLORATION AND EVALUATION ASSETS
The Group adopts the full cost method of accounting for its oil and gas
interests, having regard to the requirements of IFRS 6: Exploration for and
Evaluation of Mineral Resources. Under the full cost method of accounting, all
costs of exploring for and evaluating oil and gas properties, whether
productive or not are accumulated and capitalized by reference to appropriate
cost pools. Such cost pools are based on geographic areas and are not larger
than a segment. The Group currently has one cost pool being an area of land
located in Rajasthan, India.
Exploration and evaluation costs may include costs of license acquisition,
directly attributable exploration costs such as technical services and
studies, seismic data acquisition and processing, exploration drilling and
testing, technical feasibility, commercial viability costs, finance costs to
the extent they are directly attributable to financing these activities and an
allocation of administrative and salary costs as determined by management. All
costs incurred prior to the award of an exploration license are written off as
a loss in the year incurred.
Exploration and evaluation costs are classified as tangible or intangible
according to the nature of the assets acquired and the classification is
applied consistently. Tangible exploration and evaluation assets are
recognized and measured in accordance with the accounting policy on property,
plant and equipment. To the extent that such a tangible asset is consumed in
developing an intangible exploration and evaluation asset, the amount
reflecting that consumption is recorded as part of the cost of the intangible
asset.
Exploration and evaluation assets are not amortized prior to the conclusion of
appraisal activities. Where technical feasibility and commercial viability is
demonstrated, the carrying value of the relevant exploration and evaluation
asset is reclassified as a development and production asset and tested for
impairment on the date of reclassification. Impairment loss, if any, is
recognized.
The group has completed exploration and evaluation phase in 2017 when field
development plan has been approved by Directorate General of Hydrocarbons
('DGH') i.e., technical feasibility and commercial viability were
demonstrable. Therefore, any cost incurred thereafter on development
activities is capitalised directly to development assets.
6.7. IMPAIRMENT TESTING FOR EXPLORATION AND EVALUATION ASSETS AND
PROPERTY, PLANT AND EQUIPMENT
An impairment loss is recognized for the amount by which an asset's
cash-generating unit's carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of fair value, reflecting market conditions
less costs to sell, and value in use based on an internal discounted cash flow
evaluation.
Where there are indicators that an exploration asset may be impaired, the
exploration and evaluation assets are grouped with all development/producing
assets belonging to the same geographic segment to form the Cash Generating
Unit (CGU) for impairment testing. Where there are indicators that an item of
property, plant and equipment asset is impaired, assets are grouped at the
lowest levels for which there are separately identifiable cash flows to form
the CGU. The combined cost of the CGU is compared against the CGU's
recoverable amount and any resulting impairment loss is written off in the
profit or loss of the year. No impairment has been recognized during the year.
An assessment is made at each reporting date as to whether there is any
indication that previously recognized impairment losses may no longer exist or
may have decreased. If such indication exists, the Group estimates the asset's
or CGU's recoverable amount. A previously recognized impairment loss is
reversed only if there has been a change in the assumptions used to determine
the asset's recoverable amount since the last impairment loss was recognized.
The reversal is limited so that the carrying amount of the asset does not
exceed its recoverable amount, nor exceed the carrying amount that would have
been determined, net of depreciation, had no impairment loss been recognized
for the asset in prior years. Such reversal is recognized in profit or loss
unless the asset is carried at a re-valued amount, in which case the reversal
is treated as a revaluation increase.
6.8. FINANCIAL ASSETS
Financial Instruments
Financial assets and financial liabilities are recognized when the Group
becomes a party to the contractual provisions of the financial instrument.
Financial assets are derecognized when the contractual rights to the cash
flows from the financial asset expire, or when the financial asset and all
substantial risks and rewards are transferred. A financial liability is
derecognized when it is extinguished, discharged, cancelled or expires. Except
for trade receivables that are measured at transaction price in accordance
with IFRS 15, financial assets and financial liabilities are measured
initially at fair value plus transactions costs, except for financial assets
and financial liabilities carried at fair value through profit or loss, which
are measured initially at fair value. The value of interest free financial
assets and financial liabilities with short term maturities are not discounted
at initial recognition if the impact is not material. Financial assets and
financial liabilities are measured subsequently as described below.
Recognition of Financial Asset
On initial recognition, a financial asset is classified as measured at
- Amortized cost;
- Fair value through other comprehensive income (FVOCI) - debt investment;
- Fair value through other comprehensive income (FVOCI) - equity investment;
or
- Fair value through profit and loss (FVTPL)
Financial assets are not reclassified subsequent to their initial recognition,
except if and in the period the Group changes its business model for managing
financial assets.
All financial asset are measured at amortized cost if they meets both of the
following conditions and is not designated as at FVTPL:
· The asset is held within a business model whose objective is to hold
assets to collect contractual cash flows; and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
· The category determines subsequent measurement and whether any
resulting income and expense is recognized in consolidated statement of
comprehensive income.
After initial recognition, financials assets at amortized cost are measured at
amortized cost using the effective interest method.
Impairment of financial assets
IFRS 9's impairment requirements use more forward-looking information to
recognise expected credit losses - the 'expected credit loss (ECL) model'. The
Group considers a broader range of information when assessing credit risk and
measuring expected credit losses, including past events, current conditions,
reasonable and supportable forecasts that affect the expected collectability
of the future cash flows of the instrument.
In applying this forward-looking approach, a distinction is made between:
· financial instruments that have not deteriorated significantly in
credit quality since initial recognition or that have low credit risk and
· financial instruments that have deteriorated significantly in credit
quality since initial recognition and whose credit risk is not low.
· financial assets that have objective evidence of impairment at the
reporting date.
'12-month expected credit losses' are recognised for the first category while
'lifetime expected credit losses' are recognised for the second category.
The impairment methodology applied depends on whether there has been a
significant increase in credit risk. For trade receivables only, the Group
applies the simplified approach required by IFRS 9, which requires expected
lifetime losses to be recognised from initial recognition of the receivables.
6.9. FINANCIAL LIABILITIES
The Group's financial liabilities include borrowings, trade payables and other
payables which are classified as financial liabilities recognized at amortized
cost. Financial liabilities are measured subsequently at amortized cost using
the effective interest method except for financial liabilities at fair value
through profit or loss ("FVTPL"), that are carried subsequently at fair value
with gains or losses recognized in profit or loss in consolidated statement of
comprehensive income.
6.10. INVENTORIES
Inventories are measured at the lower of cost and net realizable value.
Inventories of drilling stores and spares are accounted at cost including
taxes, duties and freight. The cost of all inventories other than drilling
bits is computed on the basis of the first in first out method. The cost for
drilling bits is computed based on specific identification method.
6.11. ACCOUNTING FOR INCOME TAXES
Income tax assets and/or liabilities comprise those obligations to, or claims
from, fiscal authorities relating to the current or prior reporting period
that are unrecovered/unpaid at the date of the statement of financial
position. They are calculated according to the tax rates and tax laws
applicable to the fiscal periods to which they relate, based on the taxable
profit for the year. All changes to current tax assets or liabilities are
recognized as a component of tax expense in consolidated statement of
comprehensive income.
Deferred income taxes are calculated using the balance sheet method on
temporary differences. This involves the comparison of the carrying amounts
of assets and liabilities in the financial statement with their tax base. The
cost incurred on each field is claimed as deduction from the year of
commercial production. Deferred tax is, however, neither provided on the
initial recognition of goodwill, nor on the initial recognition of an asset or
liability unless the related transaction is a business combination or affects
tax or accounting profit. Tax losses available to be carried forward as well
as other income tax credits to the Group are assessed for recognition as
deferred tax assets.
Deferred tax liabilities are always provided for in full. Deferred tax assets
are recognized to the extent that it is probable that they will be offset
against future taxable income. Deferred tax assets and liabilities are
calculated, without discounting, at tax rates and laws that are expected to
apply to their respective period of realization, provided they are enacted or
substantively enacted at the date of the statement of financial position.
Changes in deferred tax assets or liabilities are recognized as a component of
tax expense in profit or loss of the year, except where they relate to items
that are charged or credited directly to other comprehensive income or equity
in which case the related deferred tax is also charged or credited directly to
other comprehensive income or equity.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets and liabilities and when the
deferred tax balances relate to the same taxation authority.
6.12. BORROWING COSTS
Any interest payable on funds borrowed for the purpose of obtaining qualifying
assets, which are assets that necessarily take a substantial period of time to
get ready for their intended use or sale, is capitalized as a cost of that
asset until such time as the assets are substantially ready for their intended
use or sale. While the Company has not made any specific borrowings for
construction of a qualifying asset, they have capitalized certain borrowing
costs on account of general borrowings at an average rate of borrowings for
the Company in terms of IAS 23 'Borrowing Costs'.
Any associated interest charge from funds borrowed principally to address a
short-term cash flow shortfall during the suspension of development activities
is expensed in the period. Transaction costs incurred towards an unutilized
debt facility is treated as prepayments to be adjusted against the carrying
value of debt as and when drawn.
6.13. CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash in hand, at bank in demand deposits and
deposit with maturities of 3 months or less from inception, which are readily
convertible to known amounts of cash. These assets are subject to an
insignificant risk of change in value.
6.14. LEASING ACTIVITIES
IFRS 16 supersedes IAS 17 Leases. All contracts that meet the definition of
a lease will be recorded in the consolidated statements of financial position
with a "Right of use" asset and a corresponding lease liability. The Group has
elected not to recognize right-of-use assets and lease liabilities for leases
that have a lease term of 12 months or less and for leases of low-value
assets.
In accordance with management's evaluation, the Group's leases do not fall
under the definition of leases as per the standard since the Group does not
have the right to direct the use of leased asset. The operator of the block
i.e. Focus Energy Limited has entered the lease agreements and it has not been
subleased to joint arrangement. Therefore, the Group recognizes its share in
the lease cost from the operations in accordance with the IFRS 6 "Exploration
for and evaluation of mineral resources".
Where the Group makes the lease payments in respect of its share of lease cost
for exploration and evaluation activities or development and production
activities, these are capitalized as part of the cost of these assets
(Exploration and evaluation, development and production assets).
6.15. OTHER PROVISIONS AND CONTINGENT LIABILITIES
Provisions are recognized when the Group has a present obligation (legal or
constructive) as a result of a past event. It is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the
obligation.
Where the Group expects some or all of provision to be reimbursed, the
reimbursement is recognized as a separate asset but only when the
reimbursement is virtually certain. The expense relating to any provision net
of any reimbursement is recognized in profit or loss of the year. To the
extent such expense is incurred for construction or development of any asset,
it is included in the cost of that asset. If the effect of the time value of
money is material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments
of the time value of money and, where appropriate, the risks specific to the
liability. Where discounting is used, the increase in the provision due to the
passage of time is recognized as other finance expenses.
Provisions include decommissioning provisions representing management's best
estimate of the Group's liability for restoring the sites of drilled wells to
their original status. Provision for decommissioning is recognized at the
present value of the estimated future expenditure when the Group has an
obligation and a reliable estimate can be made, with a corresponding addition
to property, plant and equipment which is subsequently depreciated as part of
the asset.
Commitments and contingent liabilities are not recognized in the financial
statements. They are disclosed unless the possibility of an outflow of
resources embodying economic benefits is remote.
A contingent asset is not recognized but disclosed in the financial statements
when an inflow of economic benefits is probable but when it is virtually
certain than the asset is recognized in the financial statements.
In those cases, where the possible outflow of economic resource as a result of
present obligations is considered improbable or remote, or the amount to be
provided for cannot be measured reliably, no liability is recognized in the
statement of financial position and no disclosure is made.
6.16. SEGMENT REPORTING
Operating segments are identified on the basis of internal reports about
components of the Group that are regularly reviewed by the Chief Operating
Decision Maker in order to allocate resources to the segments and to assess
their performance. The Company considers that it operates in a single
operating segment being the production and sale of gas.
7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise of the following:
Cost Land Extended well test equipment Production Bunk Houses Vehicles Other assets Capital work-in-progress Total
Development assets Assets
Balance as at 1 April 2020 167,248 4,875,084 778,586,474 241,020,061 7,869,575 4,917,035 1,695,265 1,728,736 1,040,859,478
Additions - 39,344 101,349,205 - - - - 1,165,653 102,554,202
Transfers - - (17,556,303) 17,556,303 - - - -
Disposals - - - (2,691) - - - - (2,691)
Balance as at 31 March 2021 167,248 4,914,428 862,379,376 258,573,673 7,869,575 4,917,035 1,695,265 2,894,389 1,143,410,989
Additions - 258,301 74,380,143 - - - - 84,481 74,722,925
Transfers - - (71,343,270) 71,343,270 - - - - -
Disposals - - - - - - -
Balance as at 31 March 2022 167,248 5,172,729 865,416,249 329,916,943 7,869,575 4,917,035 1,695,265 2,978,870 1,218,133,914
Accumulated Depreciation
Balance as at 1 April 2020 - 2,472,112 - 45,713,555 5,893,195 4,438,082 1,649,747 - 60,166,691
Depreciation for the year - 201,548 - 1,665,054 125,401 264,600 33,630 - 2,290,233
Balance as at 31 March 2021 - 2,673,660 - 47,378,609 6,018,596 4,702,682 1,683,377 - 62,456,924
Depreciation for the - 225,161 - 5,834,481 198,577 195,099 - - 6,453,318
year
Balance as at 31 March 2022 - 2,898,821 - 53,213,090 6,217,173 4,897,781 1,683,377 - 68,910,242
Carrying values
At 31 March 2020 167,248 2,402,972 778,586,474 195,306,506 1,976,380 478,953 45,518 1,728,736 980,692,787
At 31 March 2021 167,248 2,240,768 862,379,376 211,195,064 1,850,979 214,353 11,888 2,894,389 1,080,954,065
At 31 March 2022 167,248 2,273,908 865,416,249 276,703,853 1,652,402 19,254 11,888 2,978,870 1,149,223,672
The balances above represent the Group's share in property, plant and
equipment as per note 3. Tangible assets comprise development /production
assets in respect of SGL, SSG and SSF field.
Development assets of SGL, SSG and SSF field includes the amount of
exploration and evaluation expenditure transferred to development cost on the
date of the first commercial discovery declared by the Group and also includes
expenditure incurred for the drilling of further wells in the these fields to
enhance the production activity.
Production assets in respect of SGL field includes completed production
facilities. The Group commenced the production facility in October 2012, and
accordingly such production assets have been depreciated since this date.
During the year, the Group has started production in one of the fields namely
S-97 within SSG and SSF from July 2021 and accordingly the proportionate
amount of development assets pertaining to such field on which production has
been started, is transferred to production assets. Such production assets have
been depreciated from this date of production.
The additions in development assets also include borrowing costs US$
53,932,526 (previous year: US$ 47,894,782). The weighted average
capitalization rate on funds borrowed generally is 6.72per cent per annum
(previous year 6.75per cent).
The depreciation has been included in the following headings-
31 March 2022 31 March 2021
Depreciation included in development assets 618,837 625,179
Depreciation included in statement of comprehensive income under the head cost 5,834,481 1,665,054
of sales
Total 6,453,318 2,290,233
8. DEFERRED TAX ASSETS/ LIABILITIES (NET)
Deferred taxes arising from temporary differences are summarized as follows:
31 March 2022 31 March 2021
Deferred tax assets 378,661,726 256,662,686
Unabsorbed losses/credits 378,661,726 256,662,686
Total
Deferred tax liability
Development assets/ property, plant and equipment 499,060,159 366,315,998
Total 499,060,159 366,315,998
Net deferred tax liabilities 120,398,433 109,653,312
a) The Group has recognized deferred tax assets on all of its unused tax
losses/unabsorbed depreciation considering there is convincing evidence of
availability of sufficient taxable profit in the Group in the future as
summarized in note 9.
b) The deferred tax movements during the current year have been
recognized in the consolidated statement of comprehensive income.
9. INCOME TAXES
Income tax is based on the tax rates applicable on profit or loss in various
jurisdictions in which the Group operates. The effective tax at the domestic
rates applicable to profits in the country concerned as shown in the
reconciliation below have been computed by multiplying the accounting profit
by the effective tax rate in each jurisdiction in which the Group operates.
The individual entity amounts have then been aggregated for the consolidated
financial statements. The effective tax rate applied in each individual entity
has not been disclosed in the tax reconciliation below as the amounts
aggregated for individual Group entities would not be a meaningful number.
Income tax credit is arising on account of the following:
31 March 2022 31 March 2021
Deferred tax charge (10,745,121) (16,148,477)
Total (10,745,121) (16,148,477)
The relationship between the expected tax expense based on the domestic tax
rates for each of the legal entities within the Group and the reported tax
expense in consolidated statement of comprehensive income is reconciled as
follows:
31 March 2022 31 March 2021
Accounting profit for the year before tax 45,955,305 44,076,864
Effective tax at the domestic rates applicable to profits in the country 20,073,277 19,252,774
concerned
Tax impact of bought forward losses lapsed during the year - 13,710,329
Non-taxable income (9,328,156) (16,814,626)
Tax expense 10,745,121 16,148,477
The reconciliation shown above has been based on the rate 43.68 per cent
(previous year: 43.68per cent) as applicable under Indian tax laws.
The Company's profits are taxable as per the tax laws applicable in Guernsey
where zero per cent tax rate has been prescribed for corporates. Accordingly,
there is no tax liability for the Group in Guernsey. iServices and Newbury
being participants in the PSC are covered under the Indian Income tax laws as
well as tax laws for their respective countries. However, considering the
existence of double tax avoidance arrangement between Cyprus and India, and
Mauritius and India, profits in Newbury and iServices are not likely to
attract any additional tax in their local jurisdiction. Under Indian tax laws,
Newbury and iServices are allowed to claim the entire expenditure incurred in
respect of the respective fields in the Oil Block until the start of
commercial production (whether included in the exploration and evaluation
assets or development assets) as deductible expense in the first year of
commercial production or over a period of 10 years. The Group has opted to
claim the expenditure in the first year of commercial production. As the Group
has commenced commercial production for SGL, SSG and SSF field and has
generated profits in Newbury and iServices, the management believes there is
reasonable certainty of utilization of such losses in the future years and
thus a deferred tax asset has been created in respect of these.
10. INVENTORIES
Inventories comprise the following:
31 March 2022 31 March 2021
Drilling and production stores and spares 6,478,942 7,340,320
Fuel 90,486 84,905
Goods in transit 2,890,325 1,113,039
Total 9,459,753 8,538,264
The above inventories are held for use in the exploration, development and
production activities. These are valued at cost determined based on policy
explained in paragraph 6.10. Inventories of US$629,160 (previous year: US$
51,365) were recorded as an expense under the heading 'cost of sales' in the
consolidated statement of comprehensive income during the year ended 31 March
2022. Inventories of US$ 10,504,352 (previous year: US$ 12,258,604) were
capitalized as part of development assets.
11. TRADE AND OTHER RECEIVABLE
31 March 2022 31 March 2021
Trade receivable 18,335,073 32,908,490
Other Current Asset 1,770,767 45,591
Total 20,105,840 32,954,081
The carrying amount of trade receivables approximates their fair values. Refer
"Credit risk" in note 29 for further information.
12. CASH AND CASH EQUIVALENTS
31 March 2022 31 March 2021
Cash at banks in current accounts 4,452,010 995,765
Total 4,452,010 995,765
The Group only deposits cash surpluses with major banks of high-quality credit
standing.
13. EQUITY
Authorized share capital
The total authorized share capital of the Company is GBP 5,000,000 divided
into 500,000,000 shares of GBP 0.01 each.
Issued share capital
The total issued share capital of the Company is USD 3,619,443 (previous year:
3,619,443) divided into 182,973,924 shares (previous year: 182,973,924).
--For all matters submitted to vote in the shareholders meeting of the
Company, every holder of ordinary shares, as reflected in the records of the
Company on the date of the shareholders' meeting has one vote in respect of
each share held.
All shareholders are equally eligible to receive dividends and the repayment
of capital in the event of liquidation of the individual entities of the
Group.
Additional paid in capital
Additional paid-in capital represents excess over the par value of share
capital paid in by shareholders in return for the shares issued to them,
recorded net of expenses incurred on issue of shares.
Currency translation reserve
Currency translation reserve represents the balance of translation of the
entity's financial statements into US$ until 30 November 2010 when its
functional currency was assessed as GBP. Subsequent to 1 December 2010, the
functional currency of Indus Gas was reassessed as US$.
Merger reserve
The balance on the merger reserve represents the fair value of the
consideration given in excess of the nominal value of the ordinary shares
issued in an acquisition made by the issue of shares of subsidiaries from
other entities under common control.
Retained earnings
Retained earnings include current and prior period retained profits.
14. LONG TERM DEBT
From Banks
Maturity 31 March 2022 31 March 2021
Non-current portion of long-term debt 2024 (PY: 2024) 39,239,735 57,979,631
Current portion of long-term debt 19,079,585 20,923,919
Total 58,319,320 78,903,550
Current interest rates are variable and weighted average interest for the year
was 6.72 per cent per annum (previous year: 6.75 per cent per annum). The fair
value of the above variable rate borrowings is considered to approximate their
carrying amounts. The maturity profile (undiscounted) is explained in note 29.
During the previous year, RBI has issued guidelines relating to Covid-19
Regulatory Package dated April 7, 2020 wherein Banks have proposed to offer
six months holiday on the payment of instalments to eligible borrowers. The
Company has availed the offer and accordingly made the repayments of long-term
loans from Bank.
Interest capitalised on loans above have been disclosed in notes 7.
The term loans are secured by following: -
· First charge on all project assets of the Group both present and
future, to the extent of SGL Field Development and to the extent of capex
incurred out of this facility in the rest of RJ-ON/6 field.
· First charge on the current assets (inclusive of condensate receivable)
of the Group to the extent of SGL field.
· First Charge on the entire current assets of the SGL Field and to the
extent of capex incurred out of this facility in the rest of RJON/6 field.
From Bonds
Maturity 31 March 2022 31 March 2021
Non-current portion of long-term debt 2023 - 149,979,995
Current portion of long-term debt 153,667,758 3,566,275
Total 153,667,758 153,546,270
The Group has issued US Dollar 150 million bonds which carries interest at the
rate of 8 per cent per annum. These bonds are unsecured bonds and are fully
repayable at the end of 5 years i.e. December 2022, further interest on these
notes is paid semi-annually.
15. PROVISION FOR DECOMMISSIONING
Amount
Balance at 1 April 2020 1,699,209
Increase in provision 213,218
Balance as at 31 March 2021 1,912,427
Increase in provision 74,898
Balance as at 31 March 2022 1,987,325
As per the PSC, the Group is required to carry out certain decommissioning
activities on gas wells. The provision for decommissioning relates to the
estimation of future disbursements related to the abandonment and
decommissioning of gas wells. The provision has been estimated by the Group's
engineers, based on individual well filling and coverage. This provision will
be utilized when the related wells are fully depleted. The majority of the
cost is expected to be incurred within a period of next 4 years.
16. PAYABLE/ RECEIVABLE TO RELATED PARTIES
Related parties payable comprise the following:
Maturity 31 March 2022 31 March 2021
Current
Payable to directors On demand 345,105 349,019
345,105 349,019
Other than current
Borrowings from Gynia Holdings Ltd.* 625,442,503 592,508,798
625,442,503 592,508,798
Total 625,787,608 592,857,817
* Borrowings from Gynia Holdings Ltd. carries interest rate of 6.5 per cent
per annum compounded annually. The entire outstanding balance (including
interest) is subordinate to the loans taken from the banks and bonds (detailed
in note 14) and therefore, is payable along with related interest subsequent
to repayment of bank loan in year 2024.
Interest capitalised on loans above have been disclosed in notes 7.
Related parties' receivable comprises the following:
Maturity 31 March 2022 31 March 2021
Current
Prepayments to Focus On demand 120,408,124 124,394,123
Total 120,408,124 124,394,123
Prepayments to Focus
Prepayments to Focus represents excess amounts paid to them in respect of the
Group's share of contract costs, for its participating interest in Block
RJ-ON/6 pursuant to the terms of Agreement for Assignment dated 13 January
2006 and its subsequent amendments from time to time.
17. TRADE AND OTHER PAYABLES
31 March 2022 31 March 2021
Trade payables 1,199,586 3,829,578
VAT payables 116,125 35,241
Other liabilities 183,258 20,664
1,498,969 3,885,483
The carrying amount of trade and other payable approximates their fair values
and are non-interest bearing.
18. REVENUE
The Group's revenue disaggregated by primary geographical markets is as
follows:
31 March 2022 31 March 2021
Asia 53,709,538 33,026,007
Europe - 15,500,000
53,709,538 48,526,007
The Group's revenue disaggregated by the portion of revenue recognition is as
follows:
31 March 2022 31 March 2021
Goods transferred at a point in time 53,709,538 33,026,007
Services transferred at a point in time - 15,500,000
53,709,538 48,526,007
Sale of Goods (Gas)
The revenue majorly pertains to the sale of natural gas and condensate
production (by-product). The Group sells its natural gas to GAIL at a price
fixed under the agreement. The condensate is sold in the open market through
bidding. Further, the Company has entered into a gas sale agreement wherein
the customer is be liable to pay 41 % (Previous year: 75%) of the annual
contracted quantity if the customer does not purchase gas during the financial
year.
Sale of services
The sale of services represents revenue earned from technical and other
support services being rendered to oil and gas exploration companies.
Contractual assets and Contractual Liabilities
31 March 2022 31 March 2021
Current Non-current Current Non-current
Opening balance of Contract liabilities - Deferred revenue 5,077,086 25,563,995 5,077,086 25,563,995
Less: Amount of revenue recognized against opening contract liabilities (5,077,086) - (5,077,086) -
Add: Transfer from non-current to current liabilities 5,077,086 (5,077,086) 5,077,086 (5,077,086)
Add: Addition in balance of contract liabilities for current year - 5,077,086 - 5,077,086
Closing balance of Contract liabilities - Deferred revenue 5,077,086 25,563,995 5,077,086 25,563,995
19. EMPLOYEE COST
Per the PSC, Focus is the Operator of the Block. For SGL field, ONGC has a
participative interest of 30% in the development cost. Hence, the share of
iServices and Newbury are proportionately reduced (i.e. 45.5% and 17.5%
respectively). For the Non-SGL field, the share of iServices, Newbury and
Focus are in the ratio of 65%, 25% and 10% respectively. The Employee cost
attributable to Indus Gas Limited has been allocated in the agreed ratio
(refer note 3) by Focus and recorded as cost of sales and administrative
expenses in the consolidated statement of comprehensive income amounting to
US$ 201,245 (previous year US$ 211,885) and US$ 216,488(previous year US$
178,190) respectively. Cost pertaining to the employees of the Group have been
included under administrative expense is US$ 261,045 (previous year US$
243,143).
20. FOREIGN CURRENCY EXCHANGE (LOSS)/ GAIN, NET
The Group has recognized the following in the consolidated statement of
comprehensive income on account of foreign currency fluctuations:
31 March 2022 31 March 2021
Gain/(Loss) on restatement of foreign currency monetary receivables and (6,825) 57,126
payables
22,147 (458,472)
(Loss)/Gain arising on settlement of foreign currency transactions and
restatement of foreign currency balances arising out of Oil block operations
Total 15,322 (401,346)
21. LEASES
The leasing activities involve lease of drilling rig and other equipment's for
exploration and development purpose by the operator. In reference to note
6.14, the Group's leases do not fall under the definition of lease as per IFRS
16 and accordingly they capitalise the share of lease rentals under
development assets. Group's share in lease payments capitalised under
development assets during the year ended 31 March 2022 amount to US$ Nil
(previous year US$ 26,544,141)
22. EARNINGS PER SHARE
The calculation of the basic earnings per share is based on the earnings
attributable to ordinary shareholders divided by the weighted average number
of shares in issue during the year. Calculation of basic and diluted earnings
per share is as follows:
31 March 2022 31 March 2021
Profits attributable to shareholders of Indus Gas Limited, for basic and 35,210,184 27,928,387
dilutive
182,973,924 182,973,924
Weighted average number of shares (used for basic earnings per share)
182,973,924 182,973,924
Diluted weighted average number of shares (used for diluted earnings per
share)
Basic earnings per share 0.19 0.15
Diluted earnings per share 0.19 0.15
23. RELATED PARTY TRANSACTIONS
The related parties for each of the entities in the Group have been summarised
in the table below:
Nature of the relationship Related Party's Name
I. Holding Company Gynia Holdings Ltd.
II. Ultimate Holding Company Multi Asset Holdings Ltd. (Holding Company of Gynia Holdings Ltd.)
III. Enterprises over which Key Management Personnel (KMP) exercise control Focus Energy Limited
(with whom there are transactions)
Disclosure of transactions between the Group and related parties and the
outstanding balances as at 31 March 2022 and 31 March 2021 is as under:
Transactions with holding Company
Particulars 31 March 2022 31 March 2021
Transactions during the year with the holding Company
Amount received 17,425,000 116,950,000
Amount paid 23,00,0000 -
Interest 38,508,705 31,276,092
Balances at the end of the year
Total payable* 625,442,503 592,508,798
*including interest
Transactions with KMP and entity over which KMP exercise control
Particulars 31 March 2022 31 March 2021
Transactions during the year
Remuneration to KMP
Short term employee benefits 261,045 243,143
Total 261,045 243,143
Entity over which KMP exercise control
Cost incurred by Focus on behalf of the Group in respect of the Block 19,811,879 55,144,176
Remittances to Focus 15,825,880 119,980,000
Balances at the end of the year 120,408,124 124,394,123
Total receivables*
Total payable* (345,105) (349,019)
*including interest
Directors' remuneration
Directors' remuneration is included under administrative expenses, evaluation
and exploration assets or development assets in the consolidated financial
statements allocated on a systematic and rational manner. Remuneration by
director is separately disclosed in the directors' report on page 7.
24. SEGMENT REPORTING
The Chief Operating Decision maker, who is Executive Chairman of the Group,
reviews the business as one operating segment being the extraction and
production of gas along with the technical assistance to other oil and gas
exploration companies. Hence, no separate segment information has been
furnished herewith.
All of the non-current assets other than financial instruments and deferred
tax assets (there are no employment benefit assets and rights arising under
insurance contracts) are located in India and amounted to US$ 1,149,223,672
(previous year: US$ 1,080,954,065).
Revenue from customers have been identified on the basis of the customer's
geographical location and are disclosed in note 18. The total revenue from the
Group is from the sale of natural gas, its by-products (i.e. condensate) and
from the technical assistance services to Oil and gas exploration companies.
The revenue comprises 91.27% (Previous year: 98.28%) of the Group's total
revenue from top two and top three customer respectively.
25. COMMITMENTS AND CONTINGENCIES
The Group has no contingent liabilities as at 31 March 2022 (previous year
Nil).
The Group has no commitments as at 31 March 2022 (previous year Nil).
26. ACCOUNTING ESTIMATES AND JUDGEMENTS
In preparing consolidated financial statements, the Group's management is
required to make judgments and estimates that affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. The judgments and estimates are
based on management's best knowledge of current events and actions and actual
results from those estimates may ultimately differ.
Significant judgments applied in the preparation of the consolidated financial
statements are as under:
Determination of functional currency of individual entities
Following the guidance in IAS 21 "The effects of changes in foreign exchange
rates", the functional currency of each individual entity is determined to be
the currency of the primary economic environment in which the entity operates.
In the management's view each of the individual entity's functional currency
reflects the transactions, events and conditions under which the entity
conducts its business. The management believes that US$ has been taken as the
functional currency for each of the entities within the Group. US$ is the
currency in which each of these entities primarily generate and expend cash
and also generate funds for financing activities.
Full cost accounting for exploration and evaluation expenditure
The Group has followed 'full cost' approach for accounting for exploration and
evaluation expenditure against the 'successful efforts' method. As further
explained in note 6.6, exploration and evaluation assets recorded using 'full
cost' approach are tested for impairment prior to reclassification into
development assets on successful discovery of gas reserves.
Impairment of tangible assets
The Group follows the guidance of IAS 36 to determine when a tangible asset is
impaired. This determination requires significant judgment to evaluate
indicators triggering impairment. The Group monitors internal and external
indicators of impairment relating to its tangible assets. Management has
carried out impairment testing in accordance with IAS 36 'Impairment of
Assets' . Based on assessment, no impairment loss is required to be recorded.
Estimates used in the preparation of the consolidated financial statements:
Useful life and residual value of tangible assets
The Group reviews the estimated useful lives of property, plant and equipment
at the end of each annual reporting period. Specifically, production assets
are depreciated on a basis of unit of production (UOP) method which involves
significant estimates in respect of the total future production and estimate
of reserves. The calculation of UOP rate of depreciation could be impacted to
the extent that the actual production in future is different from the
forecasted production. During the financial year, the directors determined
that no change to the useful lives of any of the property, plant and equipment
is required. The carrying amounts of property, plant and equipment have been
summarized in note 7.
Recognition of provision for decommissioning cost
As per the PSC, the Group is required to carry out certain decommissioning
activities on gas wells. The ultimate decommissioning costs are uncertain and
cost estimates can vary in response to many factors including changes to
relevant legal requirements, the emergence of new restoration techniques or
experience at other production sites. The expected timing and amount of
expenditure can also change, for example, in response to changes in reserves
or changes in laws and regulations or their interpretation. As a result, there
could be adjustments to the provisions established which would affect future
financial results. The liabilities estimated in respect of decommissioning
provisions have been summarized in note 15.
Impairment testing
As explained above, management carried out impairment testing of property,
plant and equipment as on 31 March 2022. An impairment loss is recognized
for the amount by which the asset's or cash generating unit's carrying amount
exceeds its recoverable amount.
To determine the recoverable amount, management estimates expected future cash
flows from the Block and determines a suitable interest rate in order to
calculate the present value of those cash flows. In the process of measuring
expected future cash flows management makes assumptions about future gross
profits. These assumptions relate to future events and circumstances. In most
cases, determining the applicable discount rate involves estimating the
appropriate adjustment to market risk and the appropriate adjustment to
asset-specific risk factors.
The recoverable amount was determined based on value-in-use calculations,
basis gas reserves confirmed by an independent competent person. The gas price
has been revised to US$ 6.1 per MMBTU on Gross Calorific Value (GCV) basis
from 1 April 2022 to 30 September 2022 resulting in price increase of 35% on
the existing price. The discount rate calculation is based on the Company's
weighted average cost of capital adjusted to reflect pre-tax discount rate and
amounts to 7% p.a. Management believes that no reasonably possible changes in
the assumptions may lead to impairment of property, plants and equipment and
intangible assets of the Block.
Deferred tax assets
The assessment of the probability of future taxable income in which deferred
tax assets can be utilized is based on the management's assessment, which is
adjusted for specific limits to the use of any unused tax loss or credit. The
tax rules in the jurisdictions in which the Group operates are also carefully
taken into consideration. If a positive forecast of taxable income indicates
the probable use of a deferred tax asset, then deferred tax asset is usually
recognized in full. The recoverability of deferred tax assets is monitored as
an ongoing basis based on the expected taxable income from the sale of gas.
27. BASIS OF GOING CONCERN ASSUMPTION
The Group has current liabilities amounting to US$ 179,668,503 (2020-21: US$
33,801,782) the majority of which is towards current portion of borrowings
from banks and bonds. As at 31 March 2022, the amounts due for repayment
(including interest payable) within the next 12 months for long term
borrowings are US$ 172,747,343 (2020-21: US$ 24,490,194) which the Group
expects to meet from its internal generation of cash from operations and
refinancing of bonds. The Group has net profits after tax of US$ 35,210,184
(2020-21: US$ 27,928,387) for the year ended 31 March 2022.
The group has considered following factors relevant to support going concern.
In assessing whether the going concern assumption is appropriate, the
management considered the Group cash flow forecasts under various scenarios,
identifying risks and mitigants and ensuring the Group has sufficient funding
to meet its current commitments as and when they fall due for a period of at
least 12 months from the date of approval of the Financial Statements. These
forecasts assume the current bonds are fully repaid in December and there is a
new fund raising through bond refinancing at the end of the 2022 calendar
year. The Board is confident that the bond issue will be successful based on
the financial performance of the business, current low level of debt funding
from banks and previous successful fund raises. However, at the date of
signing the financial statements the outcome of the bond issue is not known
and under the accounting and auditing framework, this indicates a material
uncertainty that may cast significant doubt on the group's ability to continue
as a going concern.
The management has also considered increase in production on start of
production from new fields or wells and increase in gas price has been revised
to US$ 6.1 per MMBTU on Gross Calorific Value (GCV) basis from 1 April 2022 to
30 September 2022 resulting in price increase of 35% on the existing price.
In addition, the holding Company has provided a letter of support to the group
confirming its intention to continue provide financial and other support as
necessary to enable the group to meet its obligations.
Based on business strategies and operating plans / forecasts of the Group, and
based on the above reasons, the management is confident that the Group will
continue to meet all its obligations as and when they fall due in the normal
course of business. Accordingly, these financial statements have been prepared
on a going concern basis.
28. CAPITAL MANAGEMENT POLICIES
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital.
The Group manages the capital structure and adjusts it in the light of changes
in economic conditions and the risk characteristics of the underlying assets.
The Group monitors capital on the basis of the gearing ratio. This ratio is
calculated as net debt divided by total capital. Debt is calculated as total
liabilities (including 'current and non-current liabilities' as shown in the
consolidated Statement of Financial Position). Total capital employed is
calculated as 'equity' as shown in the consolidated statement of financial
position plus total debt.
31 March 2022 31 March 2021
Total debt (A) 992,300,494 971,399,939
Total equity (B) 312,563,440 277,353,256
Total capital employed (A+B) 1,304,863,934 1,248,753,195
Gearing ratio 76.05 % 77.79 %
The gearing ratio has marginally decreased in the current year due to
proportionately lesser increase in the draw-down of loans from related party
to fund additional exploration, evaluation and development activities for the
Group as compared to increase in equity.
The Group is not subject to any externally imposed capital requirements. There
were no changes in the Group's approach to capital management during the year.
29. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
A summary of the Group's financial assets and liabilities by category are
mentioned in the table below. The carrying amounts of the Group's financial
assets and liabilities recognized at the end of the reporting period are as
follows:
31 March 2022 31 March 2021
Non-current assets
Loans
- Security deposits 549 567
Current assets
- Trade receivables 18,335,073 32,908,490
- Cash and cash equivalents 4,452,010 995,765
Total financial assets under loans and receivables 22,787,632 33,904,822
Non-current liabilities
Financial liabilities measured at amortized cost:
- Long term debt 39,239,735 207,959,625
- Payable to related parties 625,442,503 592,508,798
Current liabilities
Financial liabilities measured at amortized cost:
- Current portion of long-term debt 172,747,343 24,490,194
- Current portion of payable to related parties 345,105 349,019
- Trade and other payables (other than VAT payable) 1,382,844 3,850,242
Total financial liabilities measured at amortized cost 839,157,530 829,157,878
The fair value of the financial assets and liabilities described above closely
approximates their carrying value on the statement of financial position date.
Risk management objectives and policies
The Group finances its operations through a mixture of loans from banks and
related parties and equity. Finance requirements such as equity, debt and
project finance are reviewed by the Board when funds are required for
acquisition, exploration and development of projects.
The Group treasury functions are responsible for managing funding requirements
and investments which includes banking and cash flow management. Interest and
foreign exchange exposure are key functions of treasury management to ensure
adequate liquidity at all times to meet cash requirements.
The Group's principal financial instruments are cash held with banks and
financial liabilities to banks and related parties and these instruments are
for the purpose of meeting its requirements for operations. The Group's main
risks arising from financial instruments are foreign currency risk, liquidity
risk, commodity price risk and credit risks. Set out below are policies that
are used to manage such risks.
Foreign currency risk
The functional currency of each entity within the Group is US$ and the
majority of its business is conducted in US$. All revenues from gas sales are
received in US$ and substantial costs are incurred in US$. No forward exchange
contracts were entered into during the year.
Entities within the Group conduct the majority of their transactions in their
functional currency other than amounts of cash held in GBP, SGD and INR. All
other monetary assets and liabilities are denominated in functional currencies
of the respective entities. The currency exposure on account of assets and
liabilities which are denominated in a currency other than the functional
currency of the entities of the Group as at 31 March 2022 and 31 March 2021 is
as follows:
Particulars Functional currency Foreign currency 31 March 2022 31 March 2021
(Amount in US$) (Amount in US$)
Short term exposure- US$ Great Britain Pound 29,338 41,465
Cash and cash equivalents
US$ Singapore Dollar 10,718 10,786
US$ Indian Rupee 27,152 906,914
Total exposure 67,208 959,165
As at March 31, 2022, every 1% (increase)/decrease of the respective foreign
currencies compared to the functional currency of the Group entities would
impact profit before tax by approximately US$ (672) and US$ 672 respectively.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the Board of
Directors, which has established an appropriate liquidity risk management
framework for the management of the Group's short, medium and long-term
funding and liquidity management requirements. The Group manages liquidity
risk by maintaining adequate reserves, banking facilities and reserve
borrowing facilities, by continuously monitoring forecast and actual cash
flows, and by matching the maturity profiles of financial assets and
liabilities.
The table below summaries the maturity profile of the Group's financial
liabilities based on contractual undiscounted payments for the liquidity
analysis.
3 months to 1 year 1-2 years 2-5 years 5+ years Total
0-3 months
31 March 2022
Non-interest bearing - - - - 1,727,949
1,727,949
Variable interest rate liabilities 14,652,000 22,914,273 16,330,049 - 58,323,907
4,427,585
Fixed interest rate liabilities 150,063,567 - 625,442,503 - 779,105,674
3,599,604
9,755,138 164,715,567 2,291,4273 641,772,552 - 839,157,530
3 months to 1 year 1-2 years 2-5 years 5+ years Total
0-3 months
31 March 2021
Non-interest bearing - - - - 4,199,261
4,199,261
Variable interest rate liabilities 12,666,167 18,739,733 39,494,676 - 78,903,095
8,002,519
Fixed interest rate liabilities - 149,980,449 592,253,566 - 746,055,522
3,821,507
16,023,287 12,666,167 168,720,182 631,748,242 - 829,157,878
Interest rate risk
The Group's policy is to minimize interest rate risk exposures on the
borrowing from the banks and the sum payable to Focus Energy Limited.
Borrowing from the Gynia Holdings Ltd. is at fixed interest rate and
therefore, does not expose the Group to risk from changes in interest rate.
The interest rate on bond is fixed at 8% per annum. The Group is exposed to
changes in market interest rates through bank borrowings at variable interest
rates.
The Group's interest rate exposures are concentrated in US$.
The analysis below illustrates the sensitivity of profit and equity to a
reasonably possible change in interest rates. Based on volatility in interest
rates in the previous 12 months, the management estimates a range of 50 basis
points to be approximate basis for the reasonably possible change in interest
rates. All other variables are held constant.
Interest rate
+ 0.50 per cent - 0.50 per cent
31 March 2022 339,270 (339,270)
31 March 2021 478,569 (478,569)
Since the loans are taken for the general corporate purpose and according to
the Group's policy the certain borrowing costs related to development
activities are capitalized on account of general borrowings at an average rate
of borrowings to the cost of the development asset.
Commodity price risks
The Group's share of production of gas from the Block is sold to GAIL. The
prices have been agreed for a period of three years which expired in September
2016. As per the terms of contract, after expiry of three years' period, the
price will be reviewed periodically and reassessed mutually between the
parties. The gas price has been revised to US$ 6.1 per MMBTU on Gross
Calorific Value (GCV) basis from 1 April 2022 to 30 September 2022 resulting
in price increase of 35% on the existing price. No commodity price hedging
contracts have been entered into.
Further, there is no significant impact of Russia-Ukraine crisis as the group
has been able to secure gas price increase.
Credit risk
The Group has concentration of credit risk against the receivable balance from
customers with reputable credit standing and the group carry out credit
worthiness assessment on regular basis. Hence the Group does not consider
credit risk in respect of these to be significant.. The management has
evaluated the impact of expected credit loss on the receivable balance. While
evaluating the same, macroeconomic factors affecting the customer's ability to
settle the amount outstanding have been considered. The Group has identified
gross domestic product (GDP) and unemployment rates of the countries in which
the customers are domiciled to be the most relevant factors. The impact was
insignificant and accordingly no adjustment has been recorded in the financial
statements.
Other receivables such as security deposits and cash and cash equivalents do
not comprise of a significant balance and thus do not expose the Group to a
significant credit risk.
The tables below detail the credit quality of the Group's financial assets and
other items, as well as the Group's maximum exposure to credit risk by credit
risk rating grades.
Internal credit rating 12M or Lifetime ECL Gross carrying amount Loss allowance Net carrying amount
31 March 2022
Security deposits Performing 12 Month ECL 549 - 549
Performing Lifetime ECL (simplified approach) 18,335,073 - 18,335,073
Trade receivables
Cash and cash equivalents Performing 12 Month ECL 4,452,010 - 4,452,010
22,787,632 - 22,787,632
Internal credit rating 12M or Lifetime ECL Gross carrying amount Loss allowance Net carrying amount
31 March 2021
Security deposits Performing 12 Month ECL 567 - 567
Trade receivables Performing Lifetime ECL 32,908,490 - 32,908,490
(simplified approach)
Cash and cash equivalents Performing 12 Month ECL 995,765 - 995,765
33,904,822 - 33,904,822
An asset is performing when the counterparty has a low risk of default.
30. RECONCILIATION OF LIABILITIES FROM FINANCING ACTIVITIES
Borrowings
As at April 01, 2021 824,958,617
Cash Movement:
Net utilisation (41,461,562)
Other non- cash movements
Impact of effective interest rate adjustment 284,729
Impact of exchange fluctuations -
Interest accruals 53,647,797
As at March 31, 2022 837,429,581
Borrowings
As at April 01, 2020 697,900,300
Cash Movement:
Net proceeds 79,163,535
Other non- cash movements
Impact of effective interest rate adjustment 190,357
Impact of exchange fluctuations -
Interest accruals 47,704,425
As at March 31, 2021 824,958,617
31. POST REPORTING DATE EVENT
No adjusting or significant non-adjusting event have occurred between 31 March
2022 and the date of authorization.
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