REG - KSK Power Ventur PLC - Half Yearly Report <Origin Href="QuoteRef">KSK.L</Origin> - Part 3

KSK Power VenturAnnouncement

30/11/2016 07:07

- Part 3: For the preceding part double click  ID:nRSd5134Qb 

of coal
pursuant to the Presidential Directive amounts to                   US $ 179,100. However, notwithstanding its eligibility
for the full claim as per the PPA, keeping in view the regulatory commitments by the Government instrumentalities, the
necessary legal and administrative process that KSK Mahanadi has to pursue, on its internal evaluation of the facts and
circumstances of the case on a prudent basis, KSK Mahanadi has recognised a portion of the claim aggregating to US $
179,021 in the books of accounts until date, wherein US $ 39,613 pertains to the current period. KSK Mahanadi has in its
notices to the utilities submitted that it qualifies for the composite scheme guidelines and hence Central Electrical
Regulatory Commission (CERC) will be the relevant appropriate authority to adjudicate the matter. While in the earlier
period, the claims were to be determined by the State Regulators, pursuant to a recent ruling by the Appellate Tribunal of
Electricity (APTEL) with respect to multiple power producers, the jurisdiction of CERC has been reaffirmed. Based on the
bid guidelines, the PPA provisions and the legal advice that KSK Mahanadi has obtained, Group has made necessary amendments
in its claim petitions and filled before CERC.  Based on the legal advice and recent ruling of CERC in similarly placed
power project, KSK Mahanadi is confident that the entire claim amount is fully receivable. 
 
17.  Financial  Instruments 
 
Carrying amounts versus fair values 
 
The fair values of financial assets and financial liabilities, together with the carrying amounts in the Consolidated
statement of financial position are as follows: 
 
 Non- current financial assets                                                       
 Trade and other receivables             2,730      2,730      2,593      2,593      
 Equity securities - available-for-sale  17,799     17,799     17,938     17,938     
 Loans and receivables                   35,409     35,409     32,024     32,024     
 Derivative assets                       44,980     44,980     45,872     45,872     
 Non-current bank deposits               7,274      7,274      4,994      4,994      
 Total non-current                       108,192    108,192    103,421    103,421    
                                                                                     
 Current financial assets                                                            
 Trade and other receivables             415,034    415,034    367,139    367,139    
 Equity securities - held for trading    127        127        115        115        
 Debt securities-held for trading        5,614      5,614      5,062      5,062      
 Loans and receivables                   56,220     56,220     44,446     44,446     
 Cash and short-term deposits            160,896    160,896    122,800    122,800    
 Total current                           637,891    637,891    539,562    539,562    
 Total                                   746,083    746,083    642,983    642,983    
                                                                                     
 Non- current financial liabilities                                                  
 Trade and other payables                62,258     62,258     30,496     30,496     
 Loans and borrowings                    2,951,287  2,951,287  2,700,202  2,700,202  
 Interest rate swaps                     5,406      5,406      6,174      6,174      
 Option premium payable                  14,533     14,533     17,065     17,065     
 Total non-current                       3,033,484  3,033,484  2,753,937  2,753,937  
 Current financial liabilities                                                       
 Trade and other payables                606,980    606,980    493,099    493,099    
 Loans and borrowings                    623,697    623,697    623,600    623,600    
 Foreign exchange forward contract       2,413      2,413      629        629        
 Option premium payable                  6,365      6,365      5,469      5,469      
 Total current                           1,239,455  1,239,455  1,122,797  1,122,797  
 Total                                   4,272,939  4,272,939  3,876,734  3,876,734  
 
 
1,239,455 
 
1,239,455 
 
1,122,797 
 
1,122,797 
 
Total 
 
4,272,939 
 
4,272,939 
 
3,876,734 
 
3,876,734 
 
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  149,130  149,130  155,978  155,978  
 Total non-current                      149,130  149,130  155,978  155,978  
 Current financial assets                                                   
 Loans and receivables                  87       87       -        -        
 Cash and short-term deposits           1,939    1,939    1,194    1,194    
 Total current                          2,026    2,026    1,194    1,194    
 Total                                  151,156  151,156  157,172  157,172  
 Current financial liabilities                                              
 Trade and other payables               1,261    1,261    1,503    1,503    
 Loans and borrowings                   118,360  118,360  115,798  115,798  
 Total current                          119,621  119,621  117,301  117,301  
 
 
118,360 
 
118,360 
 
115,798 
 
115,798 
 
Total current 
 
119,621 
 
119,621 
 
117,301 
 
117,301 
 
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 is 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 2016                             Level 1  Level 2  Level 3  Total   
 Financial assets measured at fair value                                          
 Equity securities - available-for-sale        506      -        17,293   17,799  
 Equity securities - held for trading          127      -        -        127     
 Debt securities-held for trading              5,614    -        -        5,614   
 Derivative assets                             -        44,980   -        44,980  
 Total                                         6,247    44,980   17,293   68,520  
 Financial liabilities measured at fair value                                     
 Interest rate swaps                           -        5,406    -        5,406   
 Option premium payable                        -        20,898   -        20,898  
 Foreign exchange forward contract             -        2,413    -        2,413   
 Total                                         -        28,717   -        28,717  
 
 
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 2016, 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 2016                                           Available-for-sale  Total   
                                                             Unquoted Equities           
 Opening balance                                             17,429              17,429  
 Total gains or losses:                                                                  
 - in income statement                                       -                   -       
 - in other comprehensive income                                                         
 change in fair value of available for sale financial asset  -                   -       
 foreign currency translation difference                     (136)               (136)   
 Settlements                                                 -                   -       
 Transfers into level 3                                      -                   -       
 Closing balance                                             17,293              17,293  
 
 
This information is provided by RNS
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