REG - KSK Power Ventur PLC - Half Yearly Report <Origin Href="QuoteRef">KSK.L</Origin> - Part 3
26/11/2015 09:30
- Part 3: For the preceding part double click ID:nRSZ0478Hb
operating results 1,016 27,916 371 29,303
Unallocated operating expenses, net (626)
Finance costs (184,721)
Finance income 9,551
Loss before tax (146,493)
Tax income 48,832
Loss after tax (97,661)
Segment assets 10,396 3,893,883 (4,474) 3,899,805
Unallocated assets 329,050
Total assets 4,228,855
Segment liabilities 8,438 345,490 (4,474) 349,454
Unallocated liabilities 3,454,161
Total liabilities 3,803,615
Other segment information
Depreciation and amortisation 43 51,276 40 51,359
Capital expenditure 3 89,891 29 89,923
Period ended 30 September 2014 Project development activities Power generating activities Reconciling / Elimination activities Consolidated
Revenue
External customers 52 175,803 - 175,855
Inter-segment 4,122 - (4,122) -
Total revenue 4,174 175,803 (4,122) 175,855
Segment operating results 3,253 26,681 (540) 29,394
Unallocated operating expenses, net (770)
Finance costs (106,695)
Finance income 9,037
Loss before tax (69,034)
Tax income 12,386
Loss after tax (56,648)
Segment assets 11,720 3,894,662 (2,076) 3,904,306
Unallocated assets 230,734
Total assets 4,135,040
Segment liabilities 3,747 287,361 (2,076) 289,032
Unallocated liabilities 3,272,962
Total liabilities 3,561,994
Other segment information
Depreciation and amortisation 69 29,606 48 29,723
Capital expenditure 16 213,032 44 213,092
Notes to segment reporting:
(a) Inter-segment revenues are eliminated on consolidation.
(b) Profit / (loss) for each operating segment does not include finance income and finance costs of US $ 9,551 and
US $ 184,721 respectively (30 September 2014: US $ 9,037 and US $ 106,695 respectively).
(c) Segment assets do not include deferred tax asset of US $ 169,620 (30 September 2014: US $ 50,534), financial assets
and other investments US $ 108,289 (30 September 2014: US $ 137,097), short-term deposits with bank and cash US $ 24,244
(30 September 2014: US $ 11,987), and corporate assets US $ 26,897 (30 September 2014: US $ 31,116).
(d) Segment liabilities do not include deferred tax US $ 32,111 (30 September 2014: US $ 35,869), current tax payable US
$ 2,621 (30 September 2014: US $ 2,959), interest-bearing current and non-current borrowings US $ 3,258,129 (30 September
2014: US $ 3,113,101), derivative liabilities US $ 30,743 (30 September 2014: US $ 31,231) and corporate liabilities US $
130,557 (30 September 2014: US $ 89,802).
(e) The Company operates in one business and geographic segment. Consequently no segment disclosures of the Company are
presented.
(f) Two customers in the power generating segment contributing revenues of US $ 144,468 accounted for 58.93% (30
September 2014: One customer in the power generating segment contributing revenues of US $ 88,392 accounted for 50.28%) of
the total segment revenue.
19. Depreciation, amortisation, costs of inventories included in the interim condensed Consolidated income statement
30 September 2015 30 September 2014
Included in cost of revenue:
Fuel costs 122,702 95,227
Depreciation 44,450 25,201
Amortisation of intangible asset 65 69
Included in general and administrative expenses:
Depreciation 6,844 4,453
Impairment of trade and other receivable 3,480 -
20. Other operating income
Other operating income comprises:
30 September 2015 30 September 2014
Income from management fees 121 129
Gain on disposal of property, plant and equipment, net 17 -
Claims received 1 - 8,076
Deferred revenue amortisation 59 57
Other operating income 151 361
Total 348 8,623
1Claims received includes an amount of US $ Nil (30 September 2014: US $ 8,076) received from an Engineering, Procurement
and Construction (EPC) contractor.
21. Finance costs
Finance costs comprise:
Consolidated Company
30 September 2015 30 September 2014 30 September 2015 30 September 2014
Interest expenses on loans and borrowings 1 147,261 73,738 600 615
Other finance costs 8,579 13,182 786 798
Impairment of financial assets 2 26 33 - -
Net loss on financial instrument at fair value through profit or loss 3 1,048 112 - -
Foreign exchange loss, net 26,792 18,730 311 241
Unwinding of discounts 1,015 900 - -
Total 184,721 106,695 1,697 1,654
1Borrowing cost capitalised during the year amounting to US $ 65,935 (30 September 2014: US $ 117,520).
2 Impairment of financial assets relates to available-for-sale financial asset of US $ 26 (30 September 2014: US $ 33).
3Net loss on financial instrument at fair value through profit or loss above relates to foreign exchange forward contracts,
currency options and interest rate swap that did not qualify for hedge accounting.
22. Finance income
The finance income comprises:
30 September 2015 30 September 2014
Interest income
bank deposits 6,779 7,120
loans and receivables 1,482 858
Dividend income 289 228
Net gain on held-for-trading financial assets
on disposal 4 3
on re-measurement 70 21
Unwinding of discount on security deposits 927 807
Total 9,551 9,037
23. Tax income / (expense)
The major components of income tax for the period ended 30 September 2015 and 30 September 2014 are:
30 September 2015 30 September 2014
Current tax (2,178) (905)
Deferred tax 51,010 13,291
Tax income reported in the income statement 48,832 12,386
Deferred income tax at 30 September 2015 and 31 March 2015 relates to the following:
30 September 2015 31 March 2015
Deferred income tax assets
Property, plant and equipment 4,511 4,554
Unused tax losses carried forward 272,323 230,186
MAT credit 9,482 9,961
Others 4,335 3,922
290,651 248,623
Deferred income tax liabilities
Property, plant and equipment 151,632 151,778
Others 1,510 2,518
153,142 154,296
Deferred income tax asset, net 137,509 94,327
Reconciliation of deferred tax asset /(liability), net
30 September 2015 30 September 2014
Opening balance 94,327 1,702
Deferred tax income during the period recognised in the income statement 51,010 13,291
Deferred tax income during the period recognised in other comprehensive income (461) 19
MAT credit adjustment (685) -
Exchange difference (6,682) (347)
Closing balance 137,509 14,665
The Group is subject to the provisions of Minimum Alternate Tax ('MAT') under the Indian Income taxes. Accordingly, the
Group calculated the tax liability for current taxes in India after considering MAT.
The Group has carried forward credit in respect of MAT liability paid to the extent it is probable that future taxable
profit will be available against which such tax credit can be utilized.
Income tax expense is recognised based on Management's best estimate of the weighted average annual income tax rate
expected for the full financial year applied to the pre-tax income of the interim period. The Group's consolidated
effective tax rate for the six months ended 30 September 2015 was 33.33 % (six months ended 30 September 2014 was 17.94%).
The change in effective tax rate was caused mainly on account of recognition of deferred tax assets in certain Group
companies.
24. Related party transactions
The table below set out transactions with related parties that occurred in the normal course of trading.
Particulars Consolidated Company
30 September 2015 30 September 2014 30 September 2015 30 September 2014
Joint operations Parent / GUP KMP Joint operations Parent / GUP KMP Subsidiaries Parent / GUP KMP Subsidiaries Parent / GUP KMP
Transactions1,2
Corporate support services fees 17 - - 53 - - - - - - - -
Interest income 263 - - 372 - - - - - - - -
Capacity charges paid - - - 1,275 - - - - - - - -
Inter-corporate deposits and loans given 48 30 - 15,619 - - 5,339 - - 36,290 - -
Inter-corporate deposits and loans refunded - (132) - (13,766) - - (3,977) - - - - -
Loan taken - 425 - - - - 14 - - 38,649 - -
Refund of share application money - 2,759 - - 1,502 - - 2,759 - - 1,502 -
Equity-settled share based payment - - 24 - - 58 - - 24 - - 58
Managerial remuneration 3 - - 328 - - 366 - - 161 - - 188
30 September 2015 30 September 2014 30 September 2015 30 September 2014
Balances 1,2
Interest receivable 3,896 - - 3, 829 - - - - - - - -
Interest payable - - - 9 - - - - - - - -
Loans and inter corporate deposits receivable 15,002 799 - 32,919 1,005 - 173,387 23 - 166,068 - -
Loans payable - 413 - - - - 61,970 - - 37,524 - -
Other receivable 10 - - 581 - - - - - - - -
Other payable 1,373 - - 1,581 - - - - - - - -
Guarantees given 135 - - 146 - - 465,087 - - 468,139 - -
Managerial remuneration payable3 - - 117 - - 109 - - 79 - - 87
25. Commitments and contingencies
Capital commitments
As at 30 September 2015, the Group is committed to purchase property, plant and equipment for US $ 1,281,469 (31 March
2015: US $ 1,300,892). In respect of its interest in joint operations the Group is committed to incur capital expenditure
of US $ 49 (31 March 2015: US $ 51).
Guarantees
· The Company has guaranteed to unrelated parties for the loans and non-fund based facilities availed by subsidiaries
for US $ 307,087 (31 March 2015: US $ 275,977) and
· The Group guaranteed the performance of the joint operations under the power delivery agreements to unrelated
parties. No liability is expected to arise.
Legal and other claim
As a part of the environment and activities of the Group, the Group is exposed to a number of litigation and claim matters
which may significantly impact receivables or payables. No significant adverse developments have occurred in respect of
these matters during the period. Litigation and other matters are disclosed in detail in note number 30 in 31 March 2015
financials.
26. Financial Instruments
Carrying amounts versus fair values
The fair values of financial assets and financial liabilities, together with the carrying amounts in the interim condensed
Consolidated statement of financial position are as follows:
Non- current financial assets
Trade and other receivables 2,553 2,553 2,845 2,845
Equity securities - available-for-sale 18,113 18,113 19,155 19,155
Loans and receivables 39,280 39,280 53,532 53,532
Derivative assets 48,183 48,183 49,702 49,702
Non-current bank deposits 5,013 5,013 8,102 8,102
Total non-current 113,142 113,142 133,336 133,336
Current financial assets
Trade and other receivables 197,261 197,261 154,212 154,212
Equity securities - held for trading 107 107 152 152
Debt securities-held for trading 15,582 15,582 2,437 2,437
Derivative assets 11 11 - -
Loans and receivables 34,417 34,417 28,724 28,724
Cash and short-term deposits 201,070 201,070 197,996 197,996
Total current 448,448 448,448 383,521 383,521
Total 561,590 561,590 516,857 516,857
Non- current financial liabilities
Trade and other payables 43,422 43,422 47,581 47,581
Loans and borrowings 2,637,229 2,637,229 2,722,596 2,722,596
Interest rate swaps 5,648 5,648 4,763 4,763
Option premium payable 19,566 19,566 22,099 22,099
Total non-current 2,705,865 2,705,865 2,797,039 2,797,039
Current financial liabilities
Trade and other payables 429,768 429,768 369,590 369,590
Loans and borrowings 620,900 620,900 521,953 521,953
Foreign exchange forward contract - - 453 453
Option premium payable 5,529 5,529 5,506 5,506
Total current 1,056,197 1,056,197 897,502 897,502
Total 3,762,062 3,762,062 3,694,541 3,694,541
1,056,197
1,056,197
897,502
897,502
Total
3,762,062
3,762,062
3,694,541
3,694,541
The fair values of financial assets and financial liabilities, together with the carrying amounts in the company statement
of financial position are as follows:
Non-current financial assets
Loans and receivables to subsidiaries 173,387 173,387 171,676 171,676
Loans and receivables 780 780 5,100 5,100
Total non-current 174,167 174,167 176,776 176,776
Current financial assets
Loans and receivables 23 23 27 27
Cash and short-term deposits 2,099 2,099 1,065 1,065
Total current 2,122 2,122 1,092 1,092
Total 176,289 176,289 177,868 177,868
Current financial liabilities
Trade and other payables 1,467 1,467 1,372 1,372
Loans and borrowings 115,802 115,802 114,245 114,245
Total current 117,269 117,269 115,617 115,617
115,802
115,802
114,245
114,245
Total current
117,269
117,269
115,617
115,617
Fair value hierarchy
The table below analyses recurring fair value measurements for financial assets and financial liabilities. These fair value
measurements are categorised in to different levels in the fair value hierarchy based on the inputs to valuation techniques
used. The different levels are defined as follows.
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2: inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.
• Level 3: valuation techniques that include inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
30 September 2015 Level 1 Level 2 Level 3 Total
Financial assets measured at fair value
Equity securities - available-for-sale 464 - 17,649 18,113
Equity securities - held for trading 107 - - 107
Debt securities-held for trading 15,582 - - 15,582
Derivative assets - 48,194 - 48,194
Total 16,153 48,194 17,649 81,996
Financial liabilities measured at fair value
Interest rate swaps - 5,648 - 5,648
Option premium payable - 25,095 - 25,095
Total - 30,743 - 30,743
The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting year during which
the transfer has occurred. During the period ended 30 September 2015, there were no transfers between Level 1 and Level 2
fair value measurements.
Reconciliation of Level 3 fair value measurements of financial assets:
30 September 2015 Available-for-sale Total
Unquoted Equities
Opening balance 18,644 18,644
Total gains or losses:
- in income statement - -
- in other comprehensive income
change in fair value of available for sale financial asset 23 23
foreign currency translation difference (1,018) (1,018)
Settlements - -
Transfers into level 3 - -
Closing balance 17,649 17,649
31 March 2015 Level 1 Level 2 Level 3 Total
Financial assets measured at fair value
Equity securities - available-for-sale 511 - 18,644 19,155
Equity securities - held for trading 152 - - 152
Debt securities-held for trading 2,437 - - 2,437
Derivative assets - 49,702 - 49,702
Total 3,100 49,702 18,644 71,446
Financial liabilities measured at fair value
Interest rate swaps - 4,763 - 4,763
Option premium payable - 27,605 - 27,605
Foreign exchange forward contract - 453 - 453
Total - 32,821 - 32,821
During the year ended 31 March 2015, there were no transfers between Level 1 and Level 2 fair value measurements.
Reconciliation of Level 3 fair value measurements of financial assets:
31 March 2015 Available-for-sale Total
Unquoted Equities
Opening balance 21,439 21,439
Total gains or losses:
- in income statement - -
- in other comprehensive income
change in fair value of available for sale financial asset (1,877) (1,877)
foreign currency translation difference (918) (918)
Settlements - -
Transfers into level 3 - -
Closing balance 18,644 18,644
Ends
This information is provided by RNS
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