REG - Indus Gas Limited - Half-year Report
23/12/2022 07:00
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RNS Number : 6757K Indus Gas Limited 23 December 2022
Indus Gas Limited and its subsidiaries
("Indus" or the "Company")
Unaudited Condensed Consolidated Interim Financial
Statements for the six-month period ended 30 September 2022
Indus Gas Limited (AIM: INDI), 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 2022.
Consolidated reported adjusted revenues, operating profit and profit before
tax for the interim period ending 30 September 2022 were US$ 27.42m (US$
27.11m interim 2021), US$ 23.13m (US$ 22.97m interim 2021) and US$ 22.68m (US$
22.97m interim 2021) respectively.
The Company has continued to make provision for a notional deferred tax
liability of US$ 9.91m (US$ 6.09m interim 2021), in accordance with IFRS
requirements.
The Company is currently producing from the SGL field as well as the SSF &
SSG fields, with production in line with current year projections. The Company
had earlier 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. All gas production from the
three fields is currently being sold to GAIL per the contract below. At the
same time, the Petroleum & Natural Gas Regulatory Board (PNGRB) are
undertaking consultations for deciding on the pipeline route for evacuation of
the gas from the SSG and SSF fields.
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.
Jonathan Keeling, Chairman of Indus Gas, commented:
"The Company welcomed the Gas Price revision, which was effective from April
2022. The production from the block resulted in Company achieving stable
revenues and another profitable half year. Post period end, the Company was
pleased to achieve a partial refinancing of its medium term notes."
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
Unaudited Condensed Consolidated Statement of Financial Position
(All amounts in US$, unless otherwise stated)
Notes As at As at As at
30 September 2022 30 September 2021 31 March 2022
(Unaudited) (Unaudited) (Audited)
ASSETS
Non-current assets
Property, plant and equipment 6 1,189,884,758 1,097,162,179 1,149,223,672
Tax assets 1,431,777 979,498 1,213,986
Other assets 549 567 549
Total non-current assets 1,191,317,084 1,098,142,244 1,150,438,207
Current assets
Inventories 6,516,961 7,074,881 9,459,753
Prepayments 3,715,982 617,930 -
Trade and other receivables 7,081,049 12,010,459 20,105,840
Receivable from related party 108,775,152 126,453,576 120,408,124
Cash and cash equivalents 4,122,096 4,877,577 4,452,010
Total current assets 130,211,240 151,034,423 154,425,727
Total assets 1,321,528,324 1,249,176,667 1,304,863,934
LIABILITIES AND EQUITY
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 (9,313,782) (9,313,782) (9,313,782)
Merger reserve 19,570,288 19,570,288 19,570,288
Retained earnings 264,787,793 233,611,037 251,953,802
Total shareholders' equity 325,397,431 294,220,675 312,563,440
LIABILITIES
Non-current liabilities
Long term debt, excluding current portion 7* 27,200,889 199,541,249 39,239,735
Payable to related parties, excluding current portion 09 627,488,125 583,933,798 625,442,503
Deferred tax liabilities (net) 130,350,919 115,751,586 120,398,433
Provision for decommissioning 1,920,701 1,968,008 1,987,325
Deferred revenue 25,563,995 25,563,995 25,563,995
Total non-current liabilities 812,524,629 926,758,636 812,631,991
Current liabilities
Current portion of long-term debt 7* 176,433,130 20,841,609 172,747,343
Current portion payable to related parties 09 9225 345,698 345,105
Trade and other payables 2,086,823 1,932,963 1,498,969
Deferred revenue 5,077,086 5,077,086 5,077,086
Total current liabilities 183,606,264 28,197,356 179,668,503
Total liabilities 996,130,893 954,955,992 992,300,494
Total liabilities and equity 1,321,528,324 1,249,176,667 1,304,863,934
(The accompanying notes are an integral part of these Unaudited Condensed
Consolidated Interim Financial Statements)
* USD 150 million Senior Unsecured Notes due in December 2022 have been
exchanged with New Senior Unsecured Notes due in 2027. Thus, the current
portion of long-term debt has been reduced by USD 150 million and long term
debt excluding current portion has been increased by USD 150 million as of
1(st) December 2022 as a result of this exchange.
Unaudited Condensed Consolidated Statement of Comprehensive Income
(All amounts in US $, unless otherwise stated)
Notes Six months ended Six months ended
30 September 2022 30 September 2021
Unaudited Unaudited
Revenue 27,416,956 27,114,413
Cost of sales (4,282,747) (3,777,098)
Administrative expenses (405,865) (372,083)
Profit from operations 22,728,344 22,965,232
Foreign exchange gain/(loss), net 58,132 461
Interest income - -
Profit before tax 22,786,476 22,965,693
Income taxes
Provision for Deferred tax charge (9,952,486) (6,098,274)
Profit for the period (attributable to the shareholder of the Group) 12,833,991 16,867,419
Total comprehensive income for the period (attributable to the shareholders of 12,833,991 16,867,419
the Group)
Earnings per share 10
Basic 0.07 0.09
Diluted 0.07 0.09
(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 Number Amount Additional paid-in capital Currency translation reserve Merger reserve (Accumulated losses)/ Retained earnings Total stockholders' equity
Balance as at 1 April 2022 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 251,953,803 312,563,441
Profit for the period - - - - - 12,833,990 12,833,990
Total comprehensive income for the period - - - - - 12,833,990 12,833,990
Balance as at 30 September 2022 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 264,787,793 325,397,431
Balance as at 1 April 2021 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 216,743,618 277,353,256
Profit for the period - - - - - 16,867,419 16,867,419
Total comprehensive income for the period - - - - - 16,867,419 16,867,419
Balance as at 30 September 2021 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 233,611,037 294,220,675
(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 Six months ended
30 September 2022 30 September 2021
(Unaudited) (Unaudited)
(A) Cash flow from operating activities
Profit before tax 22,786,476 22,965,693
Adjustments
Unrealised exchange loss/ (gain) (58,132) (461)
Interest income - -
Depreciation 3,697,287 3,388,578
Changes in operating assets and liabilities
Inventories 2,942,792 1,463,383
Trade receivables 11,254,024 20,898,031
Trade and other payables 3,996,329 3,498,515
Other current and non-current assets (1,945,215) (572,339)
Provisions for decommissioning (66,625) 55,577
Other liabilities 251,975 (1,955,840)
Cash generated from operations 42,858,911 49,741,134
Income taxes paid/refund (217,791) (63,168)
Net cash generated from operating activities 42,641,120 49,677,966
(B) Cash flow from investing activities
Purchase of property, plant and equipment (A) (8,647,153) (17,366,652)
Interest received - -
Net cash used in investing activities (8,647,153) (17,366,652)
(C) Cash flow from financing activities
Repayment of long-term debt from banks (8,568,000) (12,168,000)
Proceed from Related Party (18,250,000) (8,575,000)
Payment of interest (7,564,013) (7,687,963)
Net cash generated from financing activities (34,382,013) (28,429,963)
Net change in cash and cash equivalents (388,046) 3,881,352
Cash and cash equivalents at the beginning of the period
4,452,010 995,765
Effect of exchange rate change on cash and cash equivalents 58,132 461
Cash and cash equivalents at the end of the period 4,122,096 4,877,577
(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 $, unless otherwise stated)
1. INTRODUCTION
Indus Gas Limited ("Indus Gas" or "the Company") was incorporated in the
Island of Guernsey on 4 March 2008 pursuant to an Act of the Royal Court of
the Island of Guernsey. The Company was set up to act as the holding company
of iServices Investments Limited. ("iServices") and Newbury Oil Co. Limited
("Newbury"). iServices and Newbury are companies incorporated in Mauritius and
Cyprus, respectively. iServices was incorporated on 18 June 2003 and Newbury
was incorporated on 17 February 2005. The Company was listed on the AIM of the
London Stock Exchange on 6 June 2008. Indus Gas, through its wholly owned
subsidiaries iServices and Newbury (together the "Group"), is engaged in the
business of oil and gas exploration, development and production.
Focus Energy Limited ("Focus"), an entity incorporated in India, entered into
a Production Sharing Contract ("PSC") with the Government of India ("GOI") and
Oil and Natural Gas Corporation Limited ("ONGC") on 30 June 1998 for petroleum
exploration and development concession in India known as RJ-ON/06 ("the
Block"). Focus is the Operator of the Block. On 13 January 2006, iServices and
Newbury entered into an interest sharing agreement with Focus and obtained a
65 per cent and 25 per cent share respectively in the Block. The balance 10
per cent of participating interest is owned by Focus. The participating
interest explained above is subject to any option to acquire 30 per cent
Participating Interest exercised by ONGC in respect of discoveries. ONGC has
already exercised 30 per cent PI option for SGL field (as further explained in
Note 3).
2. BASIS OF PREPARATION
The unaudited condensed consolidated interim financial statements are for the
six months ended 30 September 2022 and are presented in United States Dollar
(US$), 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 2022.
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 2022.
These unaudited condensed consolidated interim financial statements are for
the six months ended 30 September 2022 and have been approved for issue by the
Board of Directors.-
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 period ended 30(th)
September 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:
Particular Period ended Period ended Year ended
30 September 2022 30 September 2021 31 March 2022
(Unaudited) (Unaudited) (Audited)
Non-current assets 1,189,884,758 1,097,162,176 1,149,223,672
Current assets 115,292,113 133,528,427 129,867,877
Non-current liabilities 1,920,700 1,968,004 1,987,325
Current liabilities - - -
Expenses (net of finance income) 3,996,329 3,498,515 6,702,159
Commitments - - -
Further, the SSF and SSG field has also received its declaration of
commerciality on 24th November 2014. Subsequent to the declaration of
commerciality for SSF and SSG 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 SSF and SSG in the
block.
4. 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 2022.
5. SEGMENT REPORTING
Operating segments are identified on the basis of internal reports about
components of the Group that are regularly reviewed by the management 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.
6. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise of the following:
Cost Land Extended well test equipment Development Assets Production Assets Bunk Houses Vehicles Other assets Capital work-in-progress Total
Balance as at 1 April 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
Additions - 162,004 44,341,029 66,383,013 - 46,888 - 26,293 110,959,227
Disposals/Transfers - (66,383,013) - - - (66,383,013)
Balance as at 30 167,248 5,334,733 843,374,265 396,299,956 7,869,575 4,963,923 1,695,265 3,005,163 1,262,710,128
September 2022
Accumulated depreciation
Balance as at 1 April 2022 - 2,898,821 - 53,213,090 6,217,173 4,897,781 1,683,377 - 68,910,242
Depreciation for the period - 108,295 - 3,697,139 97,770 10,007 1,917 - 3,915,128
Balance as at 30 September 2022 - 3,007,116 - 56,910,229 6,314,943 4,907,788 1,685,294 - 72,825,370
Carrying value
As at 30 September 2022 167,248 2,327,617 843,374,265 339,389,727 1,554,632 56,135 9,971 3,005,163 1,189,884,758
Cost Land Extended well test equipment Development Assets Production assets Bunk houses Vehicles Other assets Capital work-in-progress Total
Balance as at 1 April 2021 167,248 4,914,434 862,379,376 258,573,672 7,869,575 4,917,035 1,695,265 2,894,389 1,143,410,994
Additions - 258,301 19,711,928 91,111,073 - - - 54,105 111,135,407 (91,111,073)
Disposals/Transfers - (91,111,073) - - - -
Balance as at 30 167,248 5,172,735 790,980,231 349,684,745 7,869,575 4,917,035 1,695,265 2,948,494 1,163,435,328
September 2021
Accumulated depreciation
Balance as at 1 April 2021 - 2,673,660 - 47,378,610 6,018,596 4,702,682 1,683,377 - 62,456,925
Depreciation for the period - 100,223 - 3,500,156 100,811 113,117 1,917 - 3,816,224
Balance as at 30 September 2021 - 2,773,883 - 50,878,766 6,119,407 4,815,799 1,685,294 - 66,273,149
Carrying value
As at 30 September 2021 167,248 2,398,852 790,980,231 298,805,979 1,750,168 101,236 9,971 2,948,494 1,097,162,179
Cost Land Extended well test equipment Development Production assets Bunk houses Vehicles Other assets Capital work-in-progress Total
Assets
Balance as at 1 April 2021 167,248 4,914,428 862,379,376 258,573,672 7,869,575 4,917,035 1,695,265 2,894,389 1,143,410,989
Additions - 258,301 74,380,143 (71,343,270) - - - - 84,481 74,722,925
Disposals/Transfers - - 71,343,270 - - - - -
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 2021 - 2,673,660 - 47,378,609 6,018,596 4,702,682 1,683,377 - 62,456,924
Depreciation for the period - 225,161 - 5,834,481 198,577 195,099 - - 6,453,318
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 value
As 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
Borrowing costs capitalised for the period ended 30 September 2022 amounted to
US$ 28,074,577 (30 September 2021: US$ 7,788,003 and 31 March 2022: US$
53,932,526).
7. LONG TERM DEBT FROM BANKS
Maturity 30 September 2022 30 September 2021 31 March 2022
(Unaudited) (Unaudited) (Audited)
Non-current portion of long-term debt 2024 *27,200,889 49,507,554 39,239,735
Current portion of long-term debt from banks 22,665,893 17,269,609 19,079,585
Total 49,866,782 66,777,163 58,319,320
Current interest rates are variable and weighted average interest for the
period was 6.75 per cent per annum (30 September 2021: 6.70 per cent per annum
and 31 March 2022: 6.76 per cent per annum). The fair value of the above
variable rate borrowings is 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 2022 30 September 2021 31 March 2022
(Unaudited) (Unaudited) (Audited)
Non-current portion of long-term debt 2023 - 150,033,695 -
Current portion of long-term debt *153,767,237 3,572,000 153,667,758
Total 153,767,237 153,605,695 153,667,758
*The Group has issued USD 150 million notes which carries interest at the rate
of 8 per cent per annum. These notes are unsecured notes and were fully
repayable at the end of 5 years i.e., December 2022, further interest on these
notes is paid semi-annually. US$ 150 million Senior Unsecured Notes due in
December 2022 have since been exchanged with New Senior Unsecured Notes due in
2027. Thus, the current portion of long-term debt has been reduced by US$
150 million and long term debt excluding current portion has increased by US$
150 million as of 1(st) December 2022 as a result of this exchange.
8. 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 Focus Energy Limited
(with whom there are transactions)
Disclosure of transactions between the Group and related parties and the
outstanding balances as of 30 September 2022 and 30 September 2021 are as
follows:
Transactions during the period
Particulars Period ended Period ended
30 September 2022 30 September 2021
Transactions with the Holding Company
Amount Received (18,250,000) (8,575,000)
Interest - -
Transactions with KMP
Short term employee benefits 69,055 132,947
Entity over which KMP exercise control
Cost incurred by the Focus on behalf of the group in respect of the Block 12,952,972 9,276,547
Remittances 1,320,000 11,336,000
09. PAYABLE/RECEIVABLE TO RELATED PARTIES
Particulars As at As at As at
30 September 2022 30 September 2021 31 March 2022
Entity over which KMP exercise control
Receivable to Focus Energy Limited 108,775,152 126,453,576 120,408,124
Payable with the Holding Company
Payables to Gynia Holding Limited* 627,488,125 583,933,798 625,442,503
Payable to KMP
Employee obligation 9,225 345,698 345,105
*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.
Amount receivable from Focus
Amount receivable from Focus represents amounts paid in advance to them in
respect of contract costs 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. The outstanding balance was made subordinate to the
loans taken from the banks and therefore, is payable subsequent to repayment
of bank loan in year 2024.
10. 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 Period ended
30 September 2022 30 September 2021
Profit attributable to shareholders of Indus Gas Limited, for basic and 12,833,991 16,867,419
dilutive
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$) 0.07* 0.09*
Diluted earnings per share (US$) 0.07* 0.09*
*Rounded off to the nearest two decimal places.
11. COMMITMENTS AND CONTINGENCIES
At 30 September 2022, the Group had capital commitments of US$Nil (30
September 2022: US$ Nil;31 March 2022: US$Nil) in relation to property, plant
& equipment - development/producing assets, in the Block. The Group has no
contingencies as at 30 September 2022(30 September 2021: Nil;31 March 2022:
Nil).
12. FINANCIAL RISK MANAGEMENT
The Group's financial risk management objectives and policies are consistent
with those disclosed in the consolidated financial statements as at and for
the year ended 31 March 2022.
13. INCOME TAX CREDIT
Indus Gas profits are taxable as per the tax laws applicable in Guernsey where
zero per cent tax rate has been prescribed for corporates. Accordingly, there
is no tax liability for the Group in Guernsey. iServices and Newbury being
participants in the PSC are covered under the Indian Income tax laws as well
as tax laws for their respective countries. However, considering the existence
of double tax avoidance arrangement between Cyprus and India, and Mauritius
and India, profits in Newbury and iServices are not likely to attract any
additional tax in their local jurisdiction. Under Indian tax laws, Newbury and
iServices are allowed to claim the entire expenditure in respect of the Oil
Block incurred until the start of commercial production (whether included in
the exploration and evaluation assets or development assets) as deductible
expense in the first year of commercial production or over a period of 10
years. The Group has opted to claim the expenditure in the first year of
commercial production. As the Group has commenced commercial production for
SGL field in 2011 and has generated profits in Newbury and iServices, the
management believes there is reasonable certainty of utilisation of such
losses in the future years and thus a deferred tax asset has been created in
respect of these.
14. BASIS OF GOING CONCERN ASSUMPTION
As at 30 September 2022, the Group had current liabilities amounting to US$
183,606,263, the majority of which is towards current portion of borrowings
from banks and bonds. As at 30 September 2022, the amounts due for repayment
(including interest payable) within the next 12 months for long term
borrowings were US$ 176,433,130 .
Out of US$176.43 million an amount of US$ 150 million Senior Unsecured Notes
due in December 2022 have since been exchanged with New Senior Unsecured Notes
due in 2027. Thus the current portion of long-term debt has been reduced by
US$ 150 million and Long term debt excluding current portion has been
increased by US$ 150million as of 1(st) December 2022 as a result of this
exchange. The Group expects to meet the balance amount from its internal
generation of cash from operations.
Post period end, the Group has raised New Senior Unsecured Notes of US$ 10
million (Aggregate New Senior Unsecured Notes being US$ 160 million) due in
2027. Additional funds may be raised, if required, which will be used for
planned capital expenditures (including the development of assets).
Further, there is no significant impact of Covid-19 on the Company's ability
to continue as going concern considering that the entity is in the business of
essential services
15. 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 recognized at the end of the reporting periods under
review may also be categorized as follows:
30 September 2022 30 September 2021 31 March 2022
Non-current assets
Loans 549 567 549
- Security deposits
Current assets
-Trade receivables 7,081,049 12,010,459 18,335,073
-Cash and cash equivalents 4,122,096 4,877,577 4,452,010
Total financial assets 11,203,694 16,888,603 22,787,632
Financial liabilities measured at amortized cost
Non-current liabilities
- Long term debt from banks 27,200,889 199,541,249 39,239,735
- Payable to related parties 627,488,125 583,933,798 625,442,503
Current liabilities
- Current portion of long-term debt* 176,433,130 20,841,609 172,747,343
- Current portion of payable to related parties 9,225 345,697 345,105
- Accrued expenses and other liabilities 2,086,824 1,932,963 1,382,844
Total financial liability measured at amortized cost 833,218,193 806,595,316 839,157,530
* US$ 150 million Senior Unsecured Notes due in December 2022 have since been
exchanged with New Senior Unsecured Notes due in 2027. Thus, the current
portion of long-term debt has been reduced by US$ 150 million and long term
debt excluding current portion has been increased by the same amount as of
1(st) December 2022 as a result of this exchange.
The fair value of the financial assets and liabilities described above closely
approximates their carrying value on the statement of financial position
dates.
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