REG - Indus Gas Limited - Half-year Report
Unaudited Condensed Consolidated Interim
Financial
Statements
Indus Gas Limited and its subsidiaries
Six months ended 30 September 2018
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 2018.
Consolidated reported adjusted revenues, operating profit and profit before tax for the interim period ending 30
September 2018 were US$ 27.78m (US$ 29.39 interim 2017),US$ 23.42m (US$ 25.63m interim 2017) and US$ 23.57m (US$ 23.63m interim 2017) respectively.
The Company has continued to make provision for a notional deferred tax liability of US$ 5.85m (US$ 7.92m interim 2017), in accordance with IFRS requirements.
As recently announced in our full year results, the Petroleum & Natural Gas Regulatory Board (PNGRB) have invited bids for the laying of a Gas Pipeline of 580 Kms for the evacuation of Gas from RJ-ON/6 Block. This new pipeline will connect the gas processing facility located at Langtala to Bhilwara. This will then connect to the National Grid through the Gas Authority of India Limited's (GAIL) Hazira-Vijaypur-Jagdishpur pipeline. The tender process continues to progress and a further update will be provided in due course.
Following the approval by the Director General Of Hydrocarbons (DGH) and the Ministry of Petroleum and Natural Gas (MoP&NG) of the Integrated Field Development Plan for the SSG and SSF area, detailed on-site planning continues for the delivery of the required production ramp once the pipeline is constructed. Planning is also at an advanced stage in respect of the SGL area and the revised Field Development Plan (FDP) for the enhancement of production from the current 33.5 mmscfd to an estimated 90 mmscfd.
Commenting, Peter Cockburn, Chairman of Indus, said:
Indus has reached a very exciting point in its development as a result of management's consistent and successful execution of the Company's long-term strategy of achieving both growth in reserves and commercial production. The Indian economy continues to suffer from a shortage of domestically sourced energy production and Indus remains well placed to contribute to addressing this deficit by working in partnership with the relevant authorities in India.
For further information please contact:
Indus Gas Limited
Peter Cockburn
Jonathan Keeling +44 (0) 20 7877 0022
Arden Partners plc
Steve Douglas
Ciaran Walsh
Dan Gee-Summons +44 (0) 20 7614 5900
Unaudited Condensed Consolidated Statement of Financial Position
(All amounts in US$, unless otherwise stated)
Notes
As at
30 September 2018
As at
30 September 2017
As at
31 March 2018
(Unaudited)
(Unaudited)
(Audited)
ASSETS
Non-current assets
Intangible assets: exploration and evaluation assets
7
-
-
-
Property, plant and equipment
8
796,677,681
684,756,815
742,705,287
Tax assets
2,608,056
2,264,090
2,424,527
Other assets
774
885
709
Total non-current assets
799,286,511
687,021,790
745,130,523
Current assets
Inventories
8,607,174
5,860,552
8,341,084
Trade receivables
15,642,575
11,879,600
18,185,854
Recoverable from related party
62,071,616
-
13,914,912
Other current assets
54,056
74,368
34,296
Cash and cash equivalents
864,273
1,674,929
13,342,498
Total current assets
87,239,694
19,489,449
53,818,644
Total assets
886,526,205
706,511,239
798,949,167
LIABILITIES AND EQUITY
Shareholders' equity
Share capital
36,19,443
36,19,443
3,619,443
Additional paid-in capital
46,733,689
46,733,689
46,733,689
Currency translation reserve
(9,313,781)
(9,313,781)
(9,313,781)
Merger reserve
19,570,288
19,570,288
19,570,288
Retained earnings
119,981,026
84,357,719
102,268,993
Total shareholders' equity
180,590,665
144,967,358
162,878,632
LIABILITIES
Non-current liabilities
Long term debt , excluding current portion
9
268,180,256
151,559,044
287,451,403
Provision for decommissioning
1,520,200
1,426,125
1,581,096
Deferred tax liabilities (net)
78,885,614
66,768,667
73,031,531
Payable to related parties, excluding current portion
11
287,040,489
171,354,704
204,640,627
Deferred revenue
25,563,995
25,563,995
25,563,995
Total non-current liabilities
661,190,554
416,672,535
592,268,652
Current liabilities
Current portion of long term debt
9
37,640,707
116,535,739
37,299,630
Current portion payable to related parties
11
352,985
23,137,203
355,496
Accrued expenses and other liabilities
1,674,208
121,318
1,069,671
Deferred revenue
5,077,086
5,077,086
5,077,086
Total current liabilities
44,744,986
144,871,346
43,801,883
Total liabilities
705,935,540
561,543,881
636,070,535
Total liabilities and equity
886,526,205
706,511,239
798,949,167
(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 2018
Six month ended
30 September 2017
Unaudited
Unaudited
Revenue
27,775,085
29,391,480
Cost of sales
(3,218,897)
(2,688,457)
Administrative expenses
(1,132,978)
(1,071,345)
Profit from operations
23,423,210
25,631,678
Foreign exchange gain/(loss), net
142,884
(1,993,054)
Interest income
22
45
Profit before tax
23,566,116
23,638,669
Income taxes
-Deferred tax charge
(5,854,083)
(7,920,563)
Profit for the period (attributable 17,712,033 15,718,106
to the shareholder of the Group)
Total comprehensive income for the period (attributable to the shareholders of the Group)
17,712,033
15,718,106
Earnings per share
12
Basic
0.10
0.09
Diluted
0.10
0.09
(The ((The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statement of Changes in Equity
(All amounts in US $, unless otherwise stated)
Share capital Number Amount
Additional paid-in capital
Currency translation reserve
Merger reserve
Share option reserve
(Accumulated losses)/ Retained earnings
Total stockholders' equity
Balance as at 1 April 2018
182,973,924
3,619,443
46,733,689
(9,313,781)
19,570,288
-
102,268,993
162,878,632
Profit for the period
-
-
-
-
-
-
17,712,033
17,712,033
Total comprehensive income for the period
-
-
-
-
-
-
17,712,033
17,712,033
Balance as at 30 September 2018
182,973,924
3,619,443
46,733,689
(9,313,781)
19,570,288
-
119,981,026
180,590,665
Balance as at 1 April 2017
182,973,924
3,619,443
46,733,689
(9,313,781)
19,570,288
-
68,639,613
129,249,252
Profit for the period
-
-
-
-
-
-
15,718,106
15,718,106
Total comprehensive income for the period
-
-
-
-
-
-
15,718,106
15,718,106
Balance as at 30 September 2017
182,973,924
3,619,443
46,733,689
(9,313,781)
19,570,288
-
84,357,719
144,967,358
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in US $, unless otherwise stated)
Six months ended
30 September 2018
(Unaudited)
Six months ended
30 September 2017
(Unaudited)
(A) Cash flow from operating activities
Profit before tax
23,566,116
23,638,669
Adjustments
Unrealised exchange loss/ (gain)
(142,884)
1,993,054
Interest income
(22)
(45)
Depreciation
2,520,327
2,215,281
Changes in operating assets and liabilities
Inventories
(266,090)
(279,049)
Trade receivables
2,543,379
(9,834,346)
Trade and other payables
3,171,638
2,899,807
Other current and non-current assets
(19,825)
(35,584)
Provisions for decommissioning
(60,896)
105,092
Other liabilities
602,026
96,745
Cash generated from operations
31,913,769
20,799,624
Income taxes paid
(183,529)
(98,780)
Net cash generated from operating activities
31,730,240
20,700,844
(B) Cash flow from investing activities
Purchase of property, plant and equipment A
(92,694,415)
(18,271,141)
Interest received
22
35
Net cash used in investing activities
(92,694,393)
(18,271,106)
(C) Cash flow from financing activities
Repayment of long term debt from banks
(18,642,570)
(20,828,000)
Proceed from Related Party
78,449,952
17,209,839
Payment of interest
(11,464,739)
(8,539,329)
Net cash generated from/(used in) financing activities
48,342,643
(12,157,490)
Net change in cash and cash equivalents
(12,621,510)
(9,727,752)
Cash and cash equivalents at the beginning of the period
13,342,498
11,401,788
Effect of exchange rate change on cash and cash equivalents
143,285
893
Cash and cash equivalents at the end of the period
864,273
1,674,929
A The purchase of property, plant and equipment above, includes additions to exploration and evaluation assets amounting to Nil (previous period: US$ 13,623,183) transferred to development cost, as explained in Note 7.
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(All amounts in US $, unless otherwise stated)
1. INTRODUCTION
Indus Gas Limited ("Indus Gas" or "the Company") was incorporated in the Island of Guernsey on 4 March 2008 pursuant to an Act of the Royal Court of the Island of Guernsey. The Company was set up to act as the holding company of iServices Investments Limited. ("iServices") and Newbury Oil Co. Limited ("Newbury"). iServices and Newbury are companies incorporated in Mauritius and Cyprus, respectively. iServices was incorporated on 18 June 2003 and Newbury was incorporated on 17 February 2005. The Company was listed on the Alternative Investment Market (AIM) of the London Stock Exchange on 6 June 2008. Indus Gas through its wholly owned subsidiaries iServices and Newbury (hereinafter collectively referred to as "the Group") is engaged in the business of oil and gas exploration, development and production.
Focus Energy Limited ("Focus"), an entity incorporated in India, entered into a Production Sharing Contract ("PSC") with the Government of India ("GOI") and Oil and Natural Gas Corporation Limited ("ONGC") on 30 June 1998 for petroleum exploration and development concession in India known as RJ-ON/06 ("the Block"). Focus is the Operator of the Block. On 13 January 2006, iServices and Newbury entered into an interest sharing agreement with Focus and obtained a 65 per cent and 25 per cent share respectively in the Block. Consequent to this, the Group acquired an aggregate of 90 per cent participating interest in the Block and the balance 10 per cent of participating interest is owned by Focus. The participating interest explained above is subject to any option exercised by ONGC in respect of individual wells (already exercised for SGL field as further explained in Note 4).
2. BASIS OF PREPARATION
The unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2018 and are presented in United States Dollar (US$), 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 2018.
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 2018.
These unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2018 and have been approved for issue by the Board of Directors. ---------
3. STANDARDS AND INTERPRETATIONS ISSUED BUT NOT EFFECTIVE AND YET TO BE APPLIED 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 16 Leases
On 13 January 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 is of 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 1 January 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.
- IFRIC 22 Foreign Currency Transactions and Advance Consideration
The amendment clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or nonmonetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the transaction date for each payment or receipt of advance consideration. Entities may apply the amendments on a fully retrospective basis. Alternatively, an entity may apply the Interpretation prospectively to all assets, expenses and income in its scope that are initially recognized on or after:
(i) The beginning of the reporting period in which the entity first applies the interpretation or
(ii) The beginning of a prior reporting period presented as comparative information in the financial
statements of the reporting period in which the entity first applies the interpretation.
Management is currently evaluating the impact that this new standard will have on its consolidated financial statements.
4. JOINTLY CONTROLLED ASSETS
The Group participates in an unincorporated joint arrangement with Focus wherein the Group's interest in this arrangement was classified as jointly controlled assets. Following implementation of IFRS 11: Joint Arrangements, the Group's interest in this arrangement is now classified as Joint operation. All rights and obligations in respect of exploration, development and production of oil and gas resources under the '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 2018 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 2018
(Unaudited)
Period ended
30 September 2017
(Unaudited)
Year ended
31 March 2018
(Audited)
Non-current assets
796,677,681
684,756,815
742,705,287
Current assets
70,678,790
5,860,552
22,255,996
Non-current liabilities
1,520,200
1,426,125
1,581,096
Current liabilities
-
22,699,519
-
Expenses (net of finance income)
3,171,638
2,899,807
6,761,016
Commitments
-
-
-
Also subsequent to the declaration of commerciality for SSF and SSG discovery on 24 November 2014, 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, I services and Newbury will remain in the ratio of 10 percent, 65 percent and 25 percent respectively.
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 2018.
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 at 01 April 2017
-
Additions A
13,623,183
Transfer to development assets B
(13,623,183)
Balance as at 30 September 2017
-
Balance at 01 April 2017
-
Additions A
5,927,548
Transfer to development assets B
(5,927,548)
Balance as at 31 March 2018
Balance as at 01 April 2018
-
-
Additions A
-
Transfer to development assets B
-
Balance as at 30 September 2018
-
A The above includes borrowing costs of US$ Nilfor the period ended 30 September 2018 (30 September 2017: US$ 211,423 and 31 March 2018: US$ 898,344). The weighted average capitalisation rate on funds borrowed generally is 6.86 per cent per annum (30 September 2017: 6.31 per cent per annum and 31 March 2018: 6.50 per cent per annum).
B On 19 November 2013, Focus Energy Limited submitted an integrated declaration of commerciality (DOC) to the Directorate General of Hydrocarbons, ONGC, the Government of India and the Ministry of Petroleum and Natural Gas. Upon submission of DOC, exploration and evaluation cost incurred on SSF and SSG field was transferred to development cost. Focus continues to carry out further appraisal activities in the Block, and exploration and evaluation cost incurred subsequent to 19 November 2013, to the extent considered recoverable as per DOC submitted by Focus, is immediately transferred on incurrence to development assets.
Further, field development plan has been approved by Directorate General of Hydrocarbons ('DGH') as on 23 June 2017. Accordingly, the cost incurred on the aforesaid fields from 23 June 2017 are capitalised directly to development cost.
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 2018
167,248
4,324,033
777,563,979
5,926,920
4,767,563
1,620,590
1,371,441
795,741,774
Additions
Disposals/Transfers
-
-
99,143,
-
56,512,061
-
-
-
-
-
50,952
-
88,709
-
56,750,865
-
Balance as at 30
September 2018
167,248
4,423,176
834,076,040
5,926,920
4,764,563
1,671542
1,460,150
852,492,639
Accumulated depreciation
Balance as at 1 April 2018
-
2,105,807
39,645,716
5,652,284
4,059,330
1,573,350
-
53,036,487
Depreciation for the period
-
86,608
2,520,327
64,916
91,942
14,678
-
2,778,471
Balance as at 30 September 2018
-
2,192,415
42,166,043
5,717,200
4,151,272
1,588,028
-
55,814,958
Carrying value
As at 30 September 2018
167,248
2,230,761
791,909,997
209,720
616,291
83,514
1,460,150
796,677,681
(This space is intentionally left blank)
Cost
Land
Extended well test equipment
Development/Production assets
Bunk houses
Vehicles
Other assets
Capital work-in-progress
Total
Balance as at 1 April 2017
167,248
4,120,043
688,879,299
5,926,920
4,734,619
15,76,976
1,317,908
686,722,923
Additions
203,990
108,684,770
32,944
43,614
53,533
109,018,851
Disposals
Balance as at 31 March 2018
167,248
4,324,033
777,563,979
5,926,920
4,767,563
1,620,590
1,371,441
795,741,774
Accumulated Depreciation
Balance as at 1 April 2017
-
1,870,614
34,233,251
5,388,608
3,867,798
1,500,482
-
46,860,753
Depreciation for the year
-
235,193
5,412,465
263,676
191,532
72,868
-
6,175,734
Balance as at 31 March 2018
2,105,807
39,645,716
5,652,284
4,059,330
1,573,350
-
53,036,487
Carrying value as at 31 March 2018
167,248
2,218,226
737,918,263
274,636
708,233
47,240
1,371,441
742,705,287
Cost
Land
Extended well test equipment
Development/Production assets
Bunk Houses
Vehicles
Other assets
Capital work-in-progress
Total
Balance as at 1 April 2017
167,248
4,120,043
668,879,209
5,926,920
4,734,619
1,576,976
1,317,908
686,722,923
Additions
-
198,669
47,332,757
7,370
29,689
10,216
43,795
47,622,496
Balance as at 30 September 2017
167,248
4,318,712
716,211,966
5,934,290
4,764,308
1,587,192
1,361,703
734,345,419
Accumulated depreciation
Balance as at 1 April 2017
-
1,870,614
34,233,251
5,388,608
3,867,798
1,500,482
-
46,860,753
Depreciation for the period
-
150,381
2,215,281
193,711
99,563
68,915
-
2,727,851
Balance as at 30 September 2017
-
2,020,995
36,448,532
5,582,319
3,967,361
1,569,397
-
49,588,604
Carrying value
As at 30 September 2017
167,248
2,297,717
679,763,434
351,9711
796,947
17,795
1,361,703
684,756,815
Borrowing costs capitalised for the period ended 30 September 2018 amounted to US$ 15,126,753 (30 September 2017: US$ 14,289,270 and 31 March 2018: US$ 32,077,622).
9. LONG TERM DEBT FROM BANKS
Maturity
30 September 2018
(Unaudited)
30 September 2017
(Unaudited)
31 March 2018
(Audited)
Non-current portion of long term debt
2018/2021
118,303,124
151,559,044
137,661,359
Current portion of long term debt from banks
34,140,022
40,405,397
32,991,123
Total
152,443,146
191,964,441
170,652,482
Current interest rates are variable and weighted average interest for the period was 6.63 per cent per annum (30 September 2017: 6.31 per cent per annum and 31 March 2018: 6.50 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 Bonds
Maturity
30 September 2018
(Unaudited)
30 September 2017
(Unaudited)
31 March 2018
(Audited)
Non-current portion of long term debt
2022
149,877,132
-
149,790,044
Current portion of long term debt from banks
3,500,685
76,130,342
4,308,507
Total
153,377,817
76,130,342
154,098,551
During the period ended 31 March 2018, the Group has issued USD 150 million notes under the US$ 300 million MTN programme carries interest rate of 8 per cent per annum. These notes are unsecured notes and are fully repayable at the end of 5 years i.e. December 2022 further interest on these notes will be paid semi-annually.
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 of Gynia 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 2018, 30 September 2017 and 31 March 2018 are as follows:
Transactions during the period
Particulars
Period ended
30 September 2018
Period ended
30 September 2017
Transactions with the Holding Company
Amount Received
Interest accrued
78,449,950
3,949,913
17,209,839
5,072,871
Transactions with KMP
Short term employee benefits
78,815
150,013
Entity over which KMP exercise control
Share of cost incurred by the Focus in respect of the Block
42,383,977
33,727,257
Remittances
90,780,000
16,870,000
11. PAYABLE TO RELATED PARTIES
Particulars
As at
30 September 2018
As at
30 September 2017
As at
31 March 2018
Entity over which KMP exercise control
Payable to Focus Energy Limited
(62,071,616)
22,699,519
(13,914,912)
Payable with the Holding Company
Payables to Gynia Holding Limited
287,040,489
171,354,704
204,640,627
Payable to KMP
Employee obligation
352,985
437,684
355,496
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.
Advance for expenditure/Liability payable to Focus
Amounts recoverable from Focus represents advance for expenditure for contract cost in Block RJ-ON/6.
Liability payable to Gynia
* Borrowings from Gynia Holdings Ltd. carries interest rate of 6.5 per cent per annum compounded annually. During the current year, the entire outstanding balance (including interest) was made subordinate to the loans taken from the banks and therefore, is payable along with related interest subsequent to repayment of bank loan in year 2024. Gynia Holding Limited has agreed not to charge any interest on the additional amount of loan given in the year 2017-18 and 2018-19 for a period of two years
Interest capitalised on loans above have been disclosed in notes 7 and 8.
12. EARNINGS PER SHARE
The calculation of the earnings per share is based on the profits attributable to ordinary shareholders divided by the weighted average number of shares issued during the period.
Calculation of basic and diluted earnings per share is as follows:
Period ended
30 September 2018
Period ended
30 September 2017
Profit attributable to shareholders of Indus Gas Limited, for basic and dilutive
17,712,033
15,718,106
Weighted average number of shares (used for basic profit per share)
182,973,924
182,973,924
No. of equivalent shares in respect of outstanding options
-
-
Diluted weighted average number of shares (used for diluted profit per share
182,973,924
182,973,924
Basic earnings per share (US$)
0.10*
0.09*
Diluted earnings per share (US$)
0.10*
0.09*
*Rounded off to the nearest two decimal places.
13. COMMITMENTS AND CONTINGENCIES
At 30 September 2018, the Group had capital commitments of US$ Nil (30 September 2017: US$ Nil; 31 March 2018: US$ Nil) in relation to property, plant & equipment - development/producing assets, in the Block.
The Group has no contingencies as at 30 September 2018 (30 September 2017: Nil; 31 March 2018: 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 2018.
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 CONCERN ASSUMPTION
As at 30 September 2018, the Group had current liabilities amounting to US$ 44,744,986 majority of which is towards current portion of borrowings from banks and related parties. As at 30 September 2018, the amounts due for repayment (including interest payable) within the next 12 months for long term borrowings are US$ 37,640,707 which the Group expects to meet from its internal generation of cash from operations and by raising additional funds through debt/bond.
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 2018
30 September 2017
31 March 2018
Non-current assets
-Other assets
774
885
-
Current assets
-Trade receivables
-Receivables from related party
15,642,575
62,071,616-
11,879,600
-
18,185,854
13,914,912
-Cash and cash equivalents
864,273
1,674,929
13,342,498
Total financial assets
78,579,238
13,555,414
45,443,264
Financial liabilities measured at amortised cost
Non-current liabilities
- Long term debt from banks
268,180,256
151,559,044
287,451,403
- Payable to related parties
287,040,489
171,354,704
204,640,627
Current liabilities
- Long term debt from banks
37,640,707
116,535,739
37,299,630
- Payable to related parties
352,985
23,137,203
355,496
- Accrued expenses and other liabilities
1,674,208
121,318
1,069,671
Total financial liability measured at amortized cost
594,888,645
462,708,008
530,816,827
The fair value of the financial assets and liabilities described above closely approximates their carrying value on the statement of financial position dates.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.ENDIR FEASMAFASEDE
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