REG - Indus Gas Limited - Half-year Report <Origin Href="QuoteRef">INDII.L</Origin>

Indus GasAnnouncement

29/12/2016 07:05

RNS Number : 8745S
Indus Gas Limited
29 December 2016
ForImmediateRelease
IndusGasLimited
("Indus"or "theCompany")
Interim Results
Indus Gas Limited (AIM:INDI.L), an oil & gas exploration and development company with assets in India, is pleased to report its interim results for the six month period ending 30 September 2016.
Consolidated reported adjusted revenues, operating profit and profit before tax for the interim period ending 30 September 2016 were US$ 27.39m (US$ 22.63m interim 2015), US$ 22.33m (US$ 16.78m interim 2015) and US$ 22.61m (US$ 14.27m interim 2015) respectively.
The Company has continued to make provision for a notional deferred tax liability of US$ 9.94m (US$ 7.79m interim 2015), in accordance with IFRS requirements.
The integrated Field Development Plan in respect of about 2000 sq. kms. outside of the 176 sq. kms. SGL area is under examination by the Directorate General of Hydrocarbons. A revised Field Development Plan in respect of the SGL area for the enhancement of production to about 80 mmscfd has recently been submitted to Management Committee for approval.
TheCompany continues to realise US$5 per mmBtu in respect of its existing gas sales contract. Discussions for the second contract with GAIL and RRVUNL for the additional gas supplies to the 160 MW turbine at Ramgarh are expected to be finalized in first quarter of 2017. The gas turbine has been procured by RRVUNL and the gas price needs to be mutually agreed. Discussions are also being held for finalising the gas pipeline to evacuate additional gas supply from the Non-SGL area of the block.
Commenting,PeterCockburn,Chairmanof Indus,said:
"Indus has made good progress in the period and continues to see consistent growth in revenue and profits. The revenues are now expected to increase substantially once the additional gas supplies commence."
Forfurtherinformationpleasecontact:
IndusGasLimited
PeterCockburn 
c/o+44 (0)20 76145900
ArdenPartnersplc
SteveDouglas / Patrick Caulfield
+44(0)2076145900
BellPottingerPR
LornaCobbett
+44(0)777 1344 781
Indus Gas Limited and its subsidiaries
Unaudited Condensed Consolidated Interim Financial Statements
30 September 2016
Unaudited Condensed Consolidated Statement of Financial Position 
(All amounts inUS$, unless otherwise stated)

Notes
As at
30 September 2016
As at
30 September 2015
As at
31 March 2016


(Unaudited)
(Unaudited)
(Audited)
ASSETS




Non-current assets




Intangible assets: exploration and evaluation assets
7
-
-
 -
Property, plant and equipment
8
599,706,703
522,510,609
562,441,955
Tax assets

1,962,498
1,483,713
1,735,438
Other assets

885
6,225
 885
Total non-current assets 

601,670,086
524,000,547
564,178,278
Current assets




Inventories

4,549,391
4,265,838
4,113,607
Trade receivables

2,973,857
4,304,910
3,266,738
Advance for expenditure to related party
11
12,003,316
-
-
Other current assets

7,204,623
186,186
238,879
Cash and cash equivalents

10,316,555
106,023,268
61,081,916
Total current assets

37,042,742
114,780,202
68,701,140
Total assets

638,717,828
638,780,749
632,879,418





LIABILITIES ANDEQUITY




Shareholders' equity 




Share capital

3,619,443
3,619,443
3,619,443
Additional paid-in capital

46,733,689
46,733,689
46,733,689
Currency translation reserve

(9,313,781)
(9,313,781)
(9,313,781)
Merger reserve

19,570,288
19,570,288
19,570,288
Share option reserve

-
324,865
-
Retained earnings

55,923,065
33,702,917
43,256,305
Total shareholders' equity

116,532,704
94,637,421
103,865,944
Unaudited Condensed Consolidated Statement of Financial Position (Contd.)
(All amounts in US $, unless otherwise stated)

Notes
As at 
30 September 2016
As at 
30 September 2015
As at 
31 March 2016


(Unaudited)
(Unaudited)
(Audited)





LIABILITIES




Non-current liabilities




Long term debt , excluding current portion
9
262,221,896
305,040,754
283,779,293
Provision for decommissioning

1,218,750
1,353,405
1,132,726
Deferred tax liabilities (net)

50,387,937
34,234,802
40,445,531
Payable to related parties, excluding current portion
11
132,271,106
124,208,932
128,107,609
Deferred revenue 

25,563,995
25,563,995
25,563,995
Total non-current liabilities

471,663,684
490,401,888
479,029,154
Current liabilities




Current portion of long term debt 
9
44,923,382
20,864,714
37,556,739
Current portion payable to related parties
11
299,187
27,631,649
7,175,123
Accrued expenses and other liabilities

221,785
167,991
175,372
Deferred revenue

5,077,086
5,077,086
5,077,086
Total current liabilities

50,521,440
53,741,440
49,984,320
Total liabilities

522,185,124
544,143,338
529,013,474
Total liabilities and equity 

638,717,828
638,780,749
632,879,418
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statement of Comprehensive Income
(All amounts in US $, unless otherwise stated)

 Notes
Six months ended 
30 September 2016

Six month ended
30September 2015


Unaudited

Unaudited





Revenue 

27,393,016

22,631,938
Cost of sales

(4,013,643)

(4,137,020)
Administrative expenses

(1,048,144)

(1,717,973)





Profit from operations

 22,331,229

 16,776,945 
Foreign exchange gain

277,888

42,505 
Interest expense

-

(2,553,065)
Interest income

50

75
Profit before tax

22,609,167

14,266,460





Income taxes
-Deferred tax charge

(9,942,407)

(7,789,480)

Profit for the period (attributable12,666,7606,476,980
to the shareholders of the Group)






Total comprehensive income for the period(attributable to the shareholders of the Group)


12,666,760
6,476,980 


Earnings per share

12




Basic


0.07
0.04
0.01
0.01
Diluted


0.07
0.04
0.01
0.01
Par value of each share in GBP


0.02
0.01
0.01
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statement of Changes in Equity
(All amounts in US $, unless otherwise stated)

Common Stock 
Additional paid-in capital
Currency translation reserve
Merger reserve
Share option reserve
Retained earnings
Total stockholders' equity
Number Amount
Balance as at 1 April 2016
182,973,924
3,619,443
46,733,689
(9,313,781)
19,570,288
-
43,256,305
103,865,944
Profit for the period
-
-
-
-
-
-
12,666,760
12,666,760
Total comprehensive income for the period
-
-
-
-
-
-
12,666,760
12,666,760
Balance as at 30 September 2016
182,973,924
3,619,443
46,733,689
(9,313,781)
19,570,288
-
55,923,065
116,532,704
Balance as at 1 April 2015
182,973,924
3,619,443
46,733,689
(9,313,781)
19,570,288
324,865
27,225,937
88,160,441
Profit for the period
-
-
-
-
-
-
6,476,980
6,476,980
Total comprehensive income for the period
-
-
-
-
-
-
6,476,980
6,476,980
Balance as at 30 September 2015
182,973,924
3,619,443
46,733,689
(9,313,781)
19,570,288
324,865
33,702,917
94,637,421
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim FinancialStatements).

Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in US $, unless otherwise stated) 


Six months ended
30 September 2016
(Unaudited)

Six months ended
30 September 2015
(Unaudited)
(A) Cash flow from operating activities




Profit before tax

22,609,167

14,266,460
Adjustments




Unrealised exchange (gain)/ loss

(277,888)

3,961
Interest income

(50)

(75)
Interest expense

-

2,553,065
Depreciation

3,747,737

3,866,696 
Changes in operating assets and liabilities




Inventories

(435,784)

965,577
Trade receivables

292,881

1,025,573
Trade and other payables

4,405,728

4,233,768
Other current and non-current assets

(6,965,744)

120,178
Other liabilities

(73,386)

50,482
Cash generated from operations

23,302,661

27,085,685
Income taxes paid

(227,060)

(254,926)
Net cash generated from operating activities

23,075,601

26,830,759
(B) Cash flow from investing activities




Purchase of property, plant and equipment A

(50,680,860)

(32,747,077)
Interest received

50

75
Net cash used in investing activities

(51,680,816)

(32,747,002)




Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in US $, unless otherwise stated) (Cont'd)


Six months ended
30 September 2016
Six months ended
30 September 2015


(Unaudited)
(Unaudited)
(C ) Cash flow from financing activities



Proceeds from long term debt from banks

-
44,400,000
Proceeds from issue of Multicurrency Medium Term Note("MTN") 

-
69,548,283
Repayment of long term debt from banks

(14,569,586)
(8,660,000)
Proceeds from related party

218,269
-
Payment of interest

(9,114,813)
(5,629,949)
Net cash (used in)/ generated from financing activities

(23,466,160)
99,658,334 
Net change in cash and cash equivalents

(51,071,374)
93,742,091 




Cash and cash equivalents at the beginning of the period

61,081,916
12,251,533
Effect of exchange rate change on cash and cash equivalents

306,014
29,644
Cash and cash equivalents at the end of the period

10,316,555
106,023,268




Cash and cash equivalents comprises of 



balances with banks

10,316,555
106,023,268



A The purchase of property, plant and equipment above, includes additions to exploration and evaluation assets amounting to US$ 18,009,154 (previous period: US$ 31,337,095) transferred to development cost, as explained in Note 7.
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(All amounts in US $, unless otherwise stated)
1. INTRODUCTION
Indus Gas Limited ("Indus Gas" or "the Company") was incorporated in the Island of Guernsey on 4 March2008 pursuant to an Act of the Royal Court of the Island of Guernsey. The Company was set up to act as the holding company of iServices Investments Limited. ("iServices") and Newbury Oil Co. Limited ("Newbury").iServices and Newbury are companies incorporated in Mauritius and Cyprus, respectively. iServices was incorporated on 18 June 2003 and Newbury was incorporated on 17 February 2005. The Company was listed on the Alternative Investment Market (AIM) of the London Stock Exchange on 6 June 2008. Indus Gas through its wholly owned subsidiaries iServices and Newbury (hereinafter collectively referred to as "the Group") is engaged in the business of oil and gas exploration, development and production.
Focus Energy Limited ("Focus"), an entity incorporated in India, entered into a Production Sharing Contract("PSC") with the Government of India ("GOI") and Oil and Natural Gas Corporation Limited ("ONGC") on30 June 1998 for petroleum exploration and development concession in India known as RJ-ON/06 ("the Block"). Focus is the Operator of the Block. On 13 January 2006, iServices and Newbury entered into an interest sharing agreement with Focus and obtained a 65 per cent and 25 per cent share respectively in the Block. Consequent to this, the Group acquired an aggregate of 90 per cent participating interest in the Block and the balance 10 per cent of participating interest is owned by Focus. The participating interest explained above is subject to any option exercised by ONGC in respect of field (already exercised for SGL field as further explained in Note 4).
2. BASIS OF PREPARATION
The unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2016 and are presented in United States Dollar (US$), which is the functional currency of the parent company and other entities in the Group. They have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required in annual financial statements in accordance with International Financial Reporting Standards as adopted by the European union, and should be read in conjunction with the consolidated financial statements and related notes of the Group for the year ended 31 March 2016.
The unaudited condensed consolidated interim financial statements have been prepared on a going concern basis.
The accounting policies applied in these unaudited condensed consolidated interim financial statements are consistent with the policies that were applied for the preparation of the consolidated financial statements for the year ended 31 March 2016.
These unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2016 and have been approved for issue by the Board of Directors.----
3. STANDARDS AND INTERPRETATIONS ISSUED BUT NOT EFFECTIVE AND YET TO BEAPPLIED BY THE GROUP
Summarised in the paragraphs below are standards, interpretations or amendments that have been issued prior to the date of approval of these consolidated financial statements and endorsed by EU and will be applicable for transactions in the Group but are not yet effective. These have not been adopted early by the Group and accordingly, have not been considered in the preparation of the consolidated financial statements of the Group.
Management anticipates that all of these pronouncements will be adopted by the Group in the first accounting period beginning after the effective date of each of the pronouncements. Information on the new standards, interpretations and amendments that are expected to be relevant to the Group's consolidated financial statements is provided below.
- IFRS 9 Financial Instruments Classification and Measurement
 
In July 2014, the International Accounting Standards Board issued the final version of IFRS 9, Financial Instruments. The standard reduces the complexity of the current rules on financial instruments as mandated in IAS 39. IFRS 9 has fewer classification and measurement categories as compared to IAS 39 and has eliminated the categories of held to maturity, available for sale and loans and receivables. Further it eliminates the rule-based requirement of segregating embedded derivatives and tainting rules pertaining to held to maturity investments. For an investment in an equity instrument which is not held for trading, IFRS 9 permits an irrevocable election, on initial recognition, on an individual share-by-share basis, to present all fair value changes from the investment in other comprehensive income. No amount recognized in other comprehensive income would ever be reclassified to profit or loss. It requires the entity, which chooses to measure a liability at fair value, to present the portion of the fair value change attributable to the entity's own credit risk in other comprehensive income.
 
IFRS 9 replaces the 'incurred loss model' in IAS 39 with an 'expected credit loss' model. The measurement uses a dual measurement approach, under which the loss allowance is measured as either 12 month expected credit losses or lifetime expected credit losses. The standard also introduces new presentation and disclosure requirements.
 
This standard is effective for reporting periods beginning on or after 1 January 2018 with early adoption permitted. The management is currently evaluating the impact that this new standard will have on its consolidated financial statements.
- IFRS 15 Revenue from Contracts with Customers
The International Accounting Standards Board (IASB) has published a new standard, IFRS 15 Revenue from Contracts with customers. This standard replaces IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers, and SIC-31 Revenue- Barter Transactions involving advertising services. It sets out the requirements for recognising revenue that apply to contracts with customers, except for those covered by standards on leases, insurance contracts and financial instruments. The new standard establishes a control-based revenue recognition model and provides additional guidance
in many areas not covered in detail under existing IFRSs, including how to account for arrangements with multiple performance obligations, variable pricing, customer refund rights, supplier repurchase options, and other common complexities.
This standard is effective for reporting periods beginning on or after 1 January 2017 with early adoption permitted. It applies to new contracts created on or after the effective date and to the existing contracts that are not yet complete as of the effective date.
Management is currently evaluating the impact that this new standard will have on its consolidated financial statements.
- IFRS 16Leases
On January 13, 2016, the IASB issued the final version of IFRS 16, Leases. IFRS 16 will replace the existing leases Standard, IAS 17 Leases, and related interpretations. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset isof low value. The Standard also contains enhanced disclosure requirements for lessees. The effective date for adoption of IFRS 16 is annual periods beginning on or after January 1, 2019 (but not yet endorsed in EU), though early adoption is permitted for companies applying IFRS 15 Revenue from Contracts with Customers.
Management is currently evaluating the impact that this new standard will have on its consolidated financial statements.
4. JOINTLY CONTROLLED ASSETS
As explained above, the Group through its subsidiaries has an interest sharing arrangement with Focus in the block which under IFRS 11: Joint Arrangements, 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 had an option to acquire a 30 per cent participating interest in any discovered field, upon such successful discovery of oil or gas reserves, which has been declared as commercially feasible to develop. 
Subsequent to the declaration of commercial discovery in SGL field on 21 January 2008, ONGC had exercised the option to acquire a 30 per cent participating interest in the discovered fields on 6 June 2008.The exercise of this option would reduce the interest of the existing partners proportionately.
On exercise of this option, ONGC is liable to pay its share of 30 per cent of the SGL field development costs and production costs incurred after 21 January 2008 and are entitled to a 30 per cent share in the production of gas subject to recovery of contract costs as explained below. 
The allocation of the production from the field to each participant in any year is determined on the basis of the respective proportion of each participant's cumulative unrecovered contract costs as at the end of the previous year or where there are no unrecovered contract cost at the end of previous year on the basis of participating interest of each such participant in the field. For recovery of past contract cost, production from the field is first allocated towards exploration and evaluation cost and thereafter towards development cost.
On the basis of above, gas production for the period ended 30 September 2016 is shared between Focus, iServices and Newbury in the ratio of 10 percent, 65 percent and 25 percent respectively. 
The aggregate amounts relating to jointly controlled assets, liabilities, expenses and commitments related thereto that have been included in the consolidated financial statements are as follows:
Particular
Period ended
30 September 2016
(Unaudited)
Period ended
30 September 2015
(Unaudited)
Year ended
31 March 2016
(Audited)
Non-current assets 
599,706,703
522,510,609
562,441,955
Current assets
16,552,707
4,265,838
4,113,607
Non-current liabilities
1,218,750
1,353,405
1,132,726
Current liabilities 
299,187
27,631,649
7,175,123
Expenses (net of finance income)
4,405,728
4,233,768
10,187,655
Commitments
-
-
-




5. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these unaudited condensed interim consolidated financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were consistent with those that applied to the consolidated financial statements as at and for the year ended 31 March 2016.
6. SEGMENT REPORTING
Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance. The Company considers that it operates in a single operating segment being the production and sale of gas.
7. INTANGIBLE ASSETS: EXPLORATION AND EVALUATION ASSETS
Intangible assets comprise of exploration and evaluation assets. Movement in intangible assets was as under: 

Intangible assets: exploration and evaluation assets
Balance as at 31 March 2015
 -
Additions A
31,337,095
Transfer to development assets B
(31,337,095)
Balance at 30September 2015
-
Additions A
29,780,558
Transfer to development assets B
(29,780,558)
Balance as at 31 March 2016
 -
Additions A
18,009,154
Transfer to development assets B
(18,009,154)
Balance as at 30 September 2016
 -


AThe above includes borrowing costs of US$ 133,303for the period ended 30 September 2016(30 September 2015: US$439,064 and 31 March 2016: US$2,034,442). The weighted average capitalisation rate on funds borrowed generally is 5.89 per cent per annum (30 September 2015: 5.68 per cent per annum and 31 March 2016: 5.84 per cent per annum).
BOn 19 November 2013, Focus Energy Limited submitted an integrated declaration of commerciality (DOC) to the Directorate General of Hydrocarbons, ONGC, the Government of India and the Ministry of Petroleum and Natural Gas. Upon submission of DOC, exploration and evaluation cost incurred on SSF and SSG field was transferred to development cost. Focus continues to carry out further appraisal activities in the Block, and exploration and evaluation cost incurred subsequent to 19 November 2013, to the extent considered recoverable as per DOC submitted by Focus, is immediately transferred on incurrence to development assets.
8. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise of the following:
Cost
Land
Extended well test equipment
Development/ Production assets
Bunk houses
Vehicles
Other assets
Capital work-in-progress
Total
Balance as at 1 April 2016
167,248
3,737,654 
580,789,054 
5,917,523 
4,576,803 
1,506,289 
1,227,969 
597,922,540 
Additions
-
133
41,593,793
-
-
7,541
2,092
41,603,559
Balance as at 30 September 2016
167,248
3,737,787
622,382,847
5,917,523 
4,576,803
1,513,830
1,230,061
639,526,099
Accumulated depreciation







Balance as at 1 April 2016
-
1,629,759
23,880,916 
5,015,047 
3,502,013 
1,452,850
- 
35,480,585
Depreciation for the period
 - 
126,783
3,747,737
201,751
226,856
35,684
-
4,338,811
Balance as at 30 September 2016
 - 
1,756,542
27,628,653
5,216,798
3,728,869
1,488,534
-
39,819,396
Carrying value








As at 30 September 2016
167,248
1,981,245
594,754,194
700,7250 
847,934
25,296
1,230,061
599,706,703









Cost
Land
Extended well test equipment
Development/ Production assets
Bunk Houses
Vehicles
Other assets
Capital work-in-progress
Total
Balance as at 1 April 2015
167,248
3,737,654
491,344,442
5,917,523
4.576,803
1,492,748
1,189,853
508,426,271
Additions
-
-
 43,297,264 
-
-
8,981 
32,400 
43,338,645
Balance as at 30 September 2015
167,248
3,737,654 
 534,641,706
5,917,523 
4,576,803 
1,501,729 
1,222,253 
551,764,916 









Accumulated depreciation







Balance as at 1 April 2015
 - 
1,369,651
14,506,669
4,516,785
2,878,730
1,359,963
-
24,631,798
Depreciation for the period
 - 
134,720 
3,866,696
259,762 
311,831 
49,500 
-
4,622,509
Balance as at 30 September 2015
 - 
1,504,371
18,373,365
4,776,547
3,190,561
1,409,463
-
29,254,307 









Carrying value








As at 30 September 2015
167,248
2,233,283 
516,268,341
1,140,9750 
1,386,242 
92,266 
1,222,253 
522,510,609
Cost
Land
Extended well test equipment
Development/Production assets
Bunk houses
Vehicles
Other assets
Capital work-in-progress
Total
Balance as at 1 April 2015
167,248
3,737,654
491,344,442
5,917,523
4,576,803
1,492,748
1,189,853
508,426,271
Additions 
-
-
89,444,612
 -
-
13,541
38,116
89,496,269
Balance as at 31 March 2016
167,248
3,737,654 
580,789,054
5,917,523 
4,576,803 
1,506,289
1,227,969
597,922,540
Accumulated Depreciation







Balance as at 1 April 2015
-
1,369,651
14,506,669
4,516,785
2,878,730
1,359,963
-
24,631,798
Depreciation for the year 
-
260,108
9,374,247
498,262
623,283
92,887
-
10,848,787
Balance as at 31 March 2016
-
1,629,759
23,880,916
5,015,047
3,502,013
1,452,850
-
35,480,585









Carrying value as at 31 March 2016
167,248
2,107,895
556,908,138
902,476
1,074,790
53,439
1,227,969
562,441,955









Borrowing costs capitalised for the period ended 30 September 2016 amounted to US$ 13,657,072(30 September 2015: US$ 9,530,722 and 31 March 2016: US$ 23,304,470).
9. LONG TERM DEBT 
From Banks

Maturity
30 September 2016
(Unaudited)
30 September 2015
(Unaudited)
31 March 2016
(Audited)
Non-current portion of long term debt
2018/2021
189,051,995
235,431,533
210,454,996
Current portion of long term debt from banks

42,301,806
 18,396,553
34,932,179
Total 

231,353,801
253,828,086
245,387,175
Current interest rates are variable and weighted average interest for the period was5.89per cent per annum (30 September 2015: 5.68 per cent per annum and 31 March 2016:5.84 per cent per annum). The fair value of the above variable rate borrowings are considered to approximate their carrying amounts.
The term loans are secured by following:-
 First charge on all project assets of the Group both present and future, to the extent of SGL Field Development and to the extent of capex incurred out of this facility in the rest of RJ-ON/6 field.
 First charge on the current assets (inclusive of condensate receivable) of the Group to the extent of SGL field.
 First Charge on the entire current assets of the SGL Field and to the extent of capex incurred out of this facility in the rest of RJON/6 field.
From Bond

Maturity
30 September 2016
(Unaudited)
30 September 2015
(Unaudited)
31 March 2016
(Audited)
Non-current portion of long term debt
2018
73,169,901
69,609,221
73,324,297
Current portion of long term debt 

2,621,576
 2,468,161
2,624,560
Total 

75,791,477
 72,077,382
75,948,857
During the year ended 31 March 2016, the Group has issued Singapore Dollar ("SGD") 100 million (USD74.18 million) notes under the US$ 300 million MTN programme which carries interest at the rate of 8 percent per annum. These notes are unsecured notes and are fully repayable at the end of 3 years i.e. April2018.Further, interest on these notes is paid semi-annually.
10. RELATED PARTY TRANSACTIONS 
The related parties for each of the entities in the Group have been summarised in the table below: 
Nature of the relationship
Related Party's Name


I. Holding Company
Gynia Holdings Ltd.


II. Ultimate Holding Company
Multi Asset Holdings Ltd. (Holding Company ofGynia Holdings Ltd.)
III. Enterprise over which Key Management Personnel (KMP) exercise control (with whom there are transactions)
Focus Energy Limited
Disclosure of transactions between the Group and related parties and the outstanding balances as of 30 September 2016, 30 September 2015 and 31 March 2016are as follows:
Transactions during the period
Particulars

Period ended 
30 September 2016
Period ended 
30 September 2015
Transactions with the Holding Company



Interest paid

4,163,497
3,920,098




Transactions with KMP



Short term employee benefits

94,587
233,216




Entity over which KMP exercise control



Share of cost incurred by the Focus in respect of the Block

28,451,839
32,193,085
Remittances

48,013,950
28,852,000
Expenses reimbursed 

452,637
445,315
Amount outstanding towards related parties
Particulars
As at
30 September 2016
As at
30 September 2015
As at
31 March 2016

Entity over which KMP exercise control




Payable to Focus Energy Limited
-
27,502,572
6,916,510

Advance for expenditure to related party
12,003,316
-
-

Payable with the Holding Company




Payables to Gynia Holding Limited*
132,271,106
124,208,932
128,107,609

Payable to KMP




Employee obligation 
299,187
129,077
258,613

*including interest
Directors' remuneration
Directors' remuneration is included under administrative expenses, evaluation and exploration assets or development assets in the unaudited consolidated financial statements allocated on a systematic and rational manner.
11.ADVANCE FOR EXPENSES/PAYABLE TO RELATED PARTIES
Particulars
As at
30 September 2016
As at
30 September 2015
 As at
31 March 2016
PAYABLE



Current



Payable to Focus Energy Limited
-
27,502,572
6,916,510
Payable to directors
299,187
129,077
258,613
Other than current



Payables to Gynia Holding Limited*
132,271,106
124,208,932
128,107,609
RECEIVABLE



Current



Advance for expenditure to related party
12,003,316
-
-
Advance for expenditure/payable to Focus
Receivable from/payable to Focus represents advance for expenditure given to related party 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 dated13 January 2006 and its subsequent amendments from time to time. Advance for expenditure to Focus for meeting company's share of expenses in the block RJ-ON-6/SGL Field.
The management estimates the current borrowings to be repaid on demand within twelve months from the statement of financial position date and these have been classified as current borrowings.
Liability payable to Gynia
* Borrowings from Gynia Holdings Ltd. carry interest rate of 6.5 per cent per annum compounded annually. During the current year, the entire outstanding balance (including interest) was made subordinate to the loans taken from the banks (detailed in note 13) 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 and 8.
12. EARNINGSPER SHARE 
The calculation of the earnings per share is based on the profits attributable to ordinary shareholders divided by the weighted average number of shares issued during the period.
Calculation of basic and diluted earnings per share is as follows:


Period ended
30 September 2016
Period ended 
30September2015

Profit attributable to shareholders of Indus Gas Limited, for basic and dilutive

12,666,760
6,476,980
Weighted average number of shares (used for basic profit per share)

182,973,924 
182,973,924 
No. of equivalent shares in respect of outstanding options

-
311,260
Diluted weighted average number of shares (used for diluted profit per share

182,973,924
183,285,184




Basic earnings per share (US$)

0.07*
0.04*
Diluted earnings per share (US$)

0.07*
0.04*
*Rounded off to the nearest two decimal places.
13. COMMITMENTS AND CONTINGENCIES
At 30 September 2016, the Group had capital commitments of US$ Nil (30 September 2015: US$ Nil; 31 March 2016: US$ Nil) in relation to property, plant & equipment - development/producing assets, in the Block.
The Group has no contingencies as at 30 September 2016(30 September 2015: Nil; 31 March 2016: Nil).
14. FINANCIAL RISK MANAGEMENT
The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 March 2016.
15. INCOME TAX CREDIT
Indus Gas profits are taxable as per the tax laws applicable in Guernsey where zero per cent tax rate has been prescribed for corporates. Accordingly, there is no tax liability for the Group in Guernsey. iServices and Newbury being participants in the PSC are covered under the Indian Income tax laws as well as tax laws for their respective countries. However, considering the existence of double tax avoidance arrangement between Cyprus and India, and Mauritius and India, profits in Newbury and iServices are not likely to attract any additional tax in their local jurisdiction. Under Indian tax laws, Newbury and iServices are allowed to claim the entire expenditure in respect of the Oil Block incurred until the start of commercial production (whether included in the exploration and evaluation assets or development assets) as deductible expense in the first year of commercial production or over a period of 10 years. The Company has opted to claim the expenditure in the first year of commercial production. As the Group has commenced commercial production in 2011 and has generated profits in Newbury and iServices, the management believes there is reasonable certainty of utilisation of such losses in the future years and thus a deferred tax asset has been created in respect of these.
16. BASIS OF GOING CONCERNASSUMPTION
As at 30 September 2016, the Group had current liabilities amounting to US$ 50,521,440majority of which is towards current portion of borrowings from banks and related party, Focus. The Group expects to meet its next year (year ended 30 September 2016) obligation towards existing bank loans from internal generation of cash from operations.
17. FINANCIAL INSTRUMENTS 
A summary of the Group's financial assets and liabilities by category is mentioned in the table below. 
The carrying amounts of the Group's financial assets and liabilities as recognised at the end of the reporting periods under review may also be categorised as follows:

30 September 2016
30 September 2015
31 March 2016
Non-current assets



Loans and receivables



-Security deposits
885
6,225
885
Current assets 



Loans and receivables



-Trade receivables 
2,973,857
4,304,910
3,266,738
-Cash and cash equivalents 
 10,316,555
 106,023,268 
61,081,916
Total financial assets under loans and receivables
13,291,297
110,334,403 
64,349,539
Financial liabilities measured at amortised cost:
Non-current liabilities 



- Long term debt 
262,221,896
305,040,754
283,799,293
- Payable to related parties 
132,271,106
124,208,932 
128,107,609
Current liabilities 



- Current portion long term debt 
44,923,382
20,864,714
37,556,739
- Current portion of payable to related parties 
299,187
27,631,649 
7,175,123
- Accrued expenses and other liabilities 
221,785
167,991
175,372
Total financial liability measured at amortised cost
439,937,356
477,914,040
456,794,136
The fair value of the financial assets and liabilities described above closely approximates their carrying value on the statement of financial position dates.

This information is provided by RNS
The company news service from the London Stock Exchange
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IR FEUFEAFMSESE