REG - OPG Power Ventures - Final Results <Origin Href="QuoteRef">OPG.L</Origin> - Part 3
16/07/2015 08:54
- Part 3: For the preceding part double click ID:nRSB8724Ob
deposits 94,908 79,594
- Other advances 340,579 26,891
Total 2,754,393 729,361
* Represents investment made in Padma Shipping Limited. The venturers are entitled for a share int the net assets of Padma
Shipping Limited which is a separate legal entity. Accordingly the Company has used equity method of accounting for the
same.
Available-for-sale investments are comprised of
Quoted short-term mutual fund units
The fair value of the mutual fund instruments are determined by reference to published data. These mutual fund investments
are redeemable on demand.
Investments in other assets
The investments in OPG E and OPG RE, (fair value of retained non-controlling Investments) have been fairly valued and the
share of the group has been determined and disclosed as available for sale classified as non-current. . There is no change
in the valuation technique to those adopted in the previous year. The fair value of OPGE and OPG RE is determined using
discounted cash flow approach. Significant inputs into the model are based on management's assumption of the expected cash
flows up to 31 March 2024 and a discount rate of 17%. These investments are fully impaired as at 31 March 2015.
The carrying amount of investments, its fair value and the resultant impact on the statement of comprehensive income is as
follows:
Particulars OPGE OPGRE Total
Investment value - Available for Sale as on 31.03.2014 - - -
Fair value of available for sale as on 31.03.2015 - - -
Current year charge on re-measurement through statement of comprehensive income - - -
Particulars OPGE OPGRE Total
Investment value - Available for Sale as on 31.03.2013 274,181 - 274,181
Fair value of available for sale as on 31.03.2014 - - -
Charge on re-measurement through statement of comprehensive income (274,181) - (274,181)
Loans and receivables (Current)
Advances to Suppliers include the amounts paid as advance for supply of fuel. Capital advances comprise of payments made to
contractors for construction of assets and advances paid for purchase of capital equipment. The management expects to
realise these in the next one year.
14. Trade and other receivables
31 March 2015 31 March 2014
Current
Trade receivables 27,964,156 20,594,850
Unbilled revenues 314,803 57,451
Other receivables 349,742 356,100
Total 28,628,701 21,008,401
Trade receivables are generally due within 30 days terms and are therefore short term and the carrying values are
considered a reasonable approximation of fair value. An amount of £28,628,701 (2014: £21,008,401) has been pledged as
security for borrowings. As at 31 March 2015, trade receivables of £563,827 (2014 £527,883) were collectively impaired and
provided for. Trade receivables that are neither past due nor impaired represents billings for the month of March.
The age analysis of the (overdue) trade receivables is as follows:
Total Neither past due nor impaired Past due but not impaired
Within 90 days 90 to 180 days Over 180 days
2015 27,964,156 6,394,665 13,700,217 7,869,274 -
2014 20,594,850 8,606,114 11,948,883 39,853 -
Subsequent to the reporting date, the Company has received £9,409,114 from Tamil Nadu Generation and Distribution
Corporation (TANGEDCO) towards the sale made during the period October 2014 and November 2014 under short term sale
agreement and for February 2015 and March 2015 under 15 year variable tariff LTOA contract.
The movement in the provision for trade receivables is as follows:
Opening Balance Provision for the Year Write off/ Reversal Closing Balance
2015 527,883 - 35,944 563,827
2014 978,893 93,316 (544,326) 527,883
The creation of provision for impaired receivables has been included in general and administrative expenses in the
consolidated statement of comprehensive income. Amounts charged to the allowance account are generally written off, when
there is no expectation of recovering additional cash. The maximum exposure to credit risk at the reporting date is the
carrying value of each class of receivable mentioned above. The group does not hold any collateral as security.
15. Inventories
31 March 2015 31 March 2014
Coal and fuel 6,860,904 11,750,681
Stores and spares 1,028,757 1,148,523
Total 7,889,661 12,899,204
The entire amount of £ 7,889,661 (2014: £12,899,204) has been pledged as security for borrowings (refer note 19)
16. Cash and cash equivalents
Cash and short term deposits comprise of the following:
31 March 2015 31 March 2014
Cash at banks and on hand 6,200,830 6,283,204
Short-term deposits 604,619 353,373
Total 6,805,449 6,636,577
Short-term deposits are placed for varying periods, depending on the immediate cash requirements of the Group. They are
recoverable on demand. Restricted cash represents deposits maturing between three to twelve months amounting to £5,303,217
(previous year £7,456,090) and maturing after twelve months amounting to £2,784,990 (previous year £190,860) which have
been pledged by the group in order to secure borrowing limits with banks. (Refer note 19)
17. Issued share capital
Share Capital
The Company presently has only one class of ordinary shares. For all matters submitted to vote in the shareholders meeting,
every holder of ordinary shares, as reflected in the records of the Group on the date of the shareholders' meeting, has one
vote in respect of each share held. All shares are equally eligible to receive dividends and the repayment of capital in
the event of liquidation of the Group.
The Company has an authorized and issued share capital of 351,504,795 equity shares (2014: 351,504,795) at par value of £
0.000147 (2014: £ 0.000147) per share amounting to £ 51,671 (2014: £ 51,671) in total.
The Company has issued share capital at par value of £ 51,671 (£0.000147 per share).
Reserves
Share premium represents the amount received by the Group over and above the par value of shares issued and the excess of
the fair value of share issued in business combination over the par value of such shares. Any transaction costs associated
with the issuing of shares are deducted from securities premium, net of any related income tax benefits.
Foreign currency translation reserve is used to record the exchange differences arising from the translation of the
financial statements of the foreign subsidiaries.
Other reserve represents the difference between the consideration paid and the adjustment to net assets on change of
controlling interest, without change in control, other reserves also includes any costs related with share options granted
and gain/losses on re-measurement of Available for sale financial assets.
Retained earnings include all current and prior period results as disclosed in the statement of comprehensive income less
dividend distribution.
18. Share based payments
The board has granted share options to directors and nominees of directors which are limited to 10 percent of the group's
share capital. Once granted, the share must be exercised within ten years of the date of grant otherwise the options would
lapse.
The vesting conditions are as follows:
· The 300 MW power plant of Kutch in the state of Gujarat must have been in commercial operation for three months.
· The Closing share price being at least £ 1.00 for consecutive three business days.
The related expense has been amortised over the estimated vesting period of 4.96 years (expected completion of the Kutch
plant) and an expense amounting to £ 242,888 (2014: £ 974,222) was recognised in the profit or loss with a corresponding
credit to other reserves.
Movement in the number of share options outstanding and their related weighted average exercise price are relating to an
Executive Director and a Non-executive Director are as follows:
Particulars 31 March 2015 31 March 2014
At 1 April 22,524,234 22,524,234
Granted/Forfeited/Exercised/Expired - -
At 31 March 22,524,234 22,524,234
The weighted average price fair value of options granted in 2010-11 was determined using the Black-Scholes valuation model
was £ 0.28 per option. The significant inputs into the model were weighted average share price of £ 0.66 (2011) at the
grant date, exercise price of £ 0.60, volatility of 31.34% dividend yield of Nil, an expected option life of 4.96 years
and annual risk free rate of 3% .The volatility measured at the standard deviation of continuously compounded share returns
is based on daily share prices of the last three years.
During the reporting period the board has agreed to grant 1,000,000 share options to the remaining three Non-executive
Directors and one Executive Director. Option contracts in respect of these were executed following the close of the
reporting period.
19. Borrowings
The borrowings comprise of the following:
Interest rate (range %) Final Maturity 31 March 2015 31 March 2014
Term loans at amortized cost 12.67-15.17 March - 25 258,694,310 192,426,677
Short term loans March - 15
Other borrowings March - 15 2,093,877 2,343,269
Total 260,788,187 194,769,946
Total debt of £260,788,187 (2014: £ 194,769,946) is secured as follows:
§ The term loans taken by the Group are fully secured by the property, plant, assets under construction and other current
assets of subsidiaries which have availed such loans. All the loans are personally guaranteed by a director.
§ The cash credits and working capital arrangements availed by the Group are secured against hypothecation of current
assets and in certain cases by deposits and margin money is provided as collateral.
§ Other borrowings are fully secured by hypothecation of current assets and in certain cases by margin money deposits and
other fixed deposits of the respective entities availing the facility.
Term loans contain certain covenants stipulated by the facility providers and primarily require the Group to maintain
specified levels of certain financial metrics and operating results. The terms of the other borrowings arrangements also
contain certain covenants primarily requiring the Group to maintain certain financial metrics. As of 31 March 2015, the
Group has met all the relevant covenants.
During the year instalment of loan £1,543,830 relating to Unit I and Unit II was prepaid upto June 2015
The fair value of borrowings at 31 March 2015 was £260,788,187 (2014: £194,769,946). The fair values have been calculated
by discounting cash flows at prevailing interest rates.
The borrowings are reconciled to the statement of financial position as follows:
31 March 2015 31 March 2014
Current liabilities
Amounts falling due within one year 22,851,498 8,191,455
Non-current liabilities
Amounts falling due after 1 year but not more than 5 years 220,969,216 94,459,543
Amounts falling due in more than five years 16,967,473 92,118,948
Total non-current 237,936,689 186,578,491
Total 260,788,187 194,769,946
20. Trade and other payables
31 March 2015 31 March 2014
Current
Trade payables 21,161,525 17,176,528
Creditors for capital goods 11,080,339 7,475,692
Other payables 15,597,740 10,522,083
Total 47,839,604 35,174,303
Non-current
Retention money 16,670,794 9,486,097
Other payables 124,285 15,511,429
Total 16,795,079 24,997,526
With the exception of retention money and certain other trade payables, all amounts are short term. Trade payables are
non-interest bearing and are normally settled on 45 days terms. Creditors for capital goods are non-interest bearing and
are usually settled within a year. Other payables include accruals for gratuity and other accruals for expenses.
21. Related party transactions
Where control exists:
Name of the party Nature of relationship
Gita Investments Limited Ultimate parent
Caromia Holdings limited Subsidiary
OPG Power Generation Private Limited Subsidiary
OPGS Power Gujarat Private Limited Subsidiary
Gita Power and Infrastructure Private Limited Subsidiary
OPGS Industrial Infrastructure Developers Private Ltd Subsidiary
OPG S Infrastructure Private Limited Subsidiary
Key Management Personnel:
Name of the party Nature of relationship
Arvind Gupta Chief Executive Officer
V. Narayan Swami Chief Financial Officer
M. C. Gupta Chairman
Martin Gatto Director
Ravi Gupta Director
Patrick Michael Grasby Director
Related parties with whom the group had transactions during the period
Name of the Related Party Nature of Relationship
Chennai ferrous Limited Entity in which Key Management personnel has Control / Significant Influence
Kanishk Steel Industries Limited Entity in which Key Management personnel has Control / Significant Influence
Gita Energy & Generation Private Limited Entity in which Key Management personnel has Control / Significant Influence
OPG Energy Private Limited Entity in which Key Management personnel has Control / Significant Influence
OPG Renewable Energy Private Limited Entity in which Key Management personnel has Control / Significant Influence
Powerserve Support Limited Entity in which Key Management personnel has Control / Significant Influence
Padma Shipping Limited Entity in which Key Management personnel has significant influence
Ravi Gupta Relative of Key Management personnel
Avantika Gupta Relative of Key Management personnel
Name of the Party 31 March 2015 31 March 2014
Amount (£) Amount (£)
Summary of transactions with related parties
Kanishk Steel Industries Limited
a) Sharing of Power - 32,662
b) Class A Shares allotted - 7,281
c) Share application money received 7,526 -
Padma Shipping Limited
a) Investment 1,681,058 -
Chennai Ferrous Industries Ltd
a) Purchase of Coalb) Sale of Coal -399,470 300,475
Avantika Gupta
a) Remuneration 60,971 52,143
Powerserve Support Limited
a) Consultancy fees - 19,445
OPG Renewable Energy Private Limited
a)Purchase of coal - 149,391
Gita Energy & Generation Private Limited
a)Reimbursement of expenses - 46,006
Name of the party 31 March 2015 31 March 2014
Amount (£) Amount (£)
Summary of balances with related parties.
Gita Energy & Generation Private Limited
a)Trade Payables - 46,006
Padma Shipping
a) Investments 1,681,058 -
Outstanding balances at the year-end are unsecured. There have been no guarantees provided or received for any related
party receivables or payables. For the year ended 31 March 2015, the Group has not recorded any impairment of receivables
relating to amounts owed by related parties (2014: £ Nil). This assessment is undertaken each financial year through
examining the financial position of the related party and the market in which the related party operates.
22. Earnings per Share
Both the basic and diluted earnings per share have been calculated using the profit attributable to shareholders of the
parent company as the numerator (no adjustments to profit were necessary for the year ended March 2015 or 2014).
The weighted average number of shares for the purposes of diluted earnings per share can be reconciled to the weighted
average number of ordinary shares used in the calculation of basic earnings per share (for the group and the company) as
follows:
Particulars 31 March 2015 31 March 2014
Weighted average number of shares used in basic earnings per share 351,504,795 351,504,795
Shares deemed to be issued for no consideration in respect of share based payments 8,400,981 1,802,768
Weighted average number of shares used in diluted earnings per share 359,905,776 353,307,563
23. Directors' Remuneration
Name of Directors 31 March 2015 31 March 2014
Arvind Gupta 1,200,000 758,108
V Narayan Swami 97,554 52,143
Martin Gatto 45,000 35,000
Mike Grasby 45,000 35,000
MC Gupta 45,000 35,000
Ravi Gupta 45,000 35,000
Total 1,477,554 950,251
The above remuneration is in the nature of short-term employee benefits. As the future liability for gratuity and
compensated absences is provided on actuarial basis for the companies in the group, the amount pertaining to the directors
is not individually ascertainable and therefore not included above
24. Business combination within the group without loss of control
As per the original structure of the group, two Cypriot subsidiaries of OPGPV, namely GEPL & GHPL, held the investments in
the equity of the Group's Special Purpose Vehicles (SPV) in India. During the year ended 31 March 2013, the management
decided to interpose an Indian holding Company, GPIPL in the structure and warehouse the SPV investments in GPIPL.
Accordingly, the shareholders of GEPL, GHPL and GPIPL had entered into a scheme of arrangement to effect the above
restructuring of the group. As part of the regulatory requirements in India, the group had applied and obtained approval
from the High court of Madras on 28 October 2011 subject to fulfilment of certain conditions including approval of relevant
regulatory authorities, allotment of shares etc. The scheme had been consummated with effect from 25 January 2013 upon
issue of shares to the shareholders of GEPL and GHPL, namely CHL and the assets and liabilities of GEPL and GHPL have been
taken over by GPIPL. Consequent to the scheme of arrangement, the group also has gained 100% economic interest over GPIPL
by virtue of an agreement entered into with the minority shareholders of GPIPL dated 01 April 2012. The liquidation process
of GEPL and GHPL is in progress as at year end and the management expects the same to be complete by the end of 2015.
The above arrangement has been considered as a business combination involving companies under the group and has been
accounted at the date that common control was established using pooling of interest method. The assets and liabilities
transferred are recognised at the carrying amounts recognised previously in the Group controlling shareholder's
consolidated financial statements. The components of equity of the acquired entities are added to the same components
within Group equity. There was no excess consideration paid in this transaction.
25. Commitments and contingencies
Operating lease commitments
The Group leases land under operating leases. The leases typically run for a period of 15 to 30 years, with an option to
renew the lease after that date. None of the leases includes contingent rentals.
Non-cancellable operating lease rentals are payable as follows:
31 March 2015 31 March 2014
Not later than one year 29,764 27,770
Later than one year and not later than five years 119,056 111,079
Later than five years 474,105 470,106
Total 622,925 608,955
During the year ended 31 March 2015, £28,054(2014: £28,791) was recognised as an expense in the statement of comprehensive
income in respect of operating leases.
Capital commitments
During the year ended 31 March 2015, the Group entered into a contract to purchase property, plant and equipment for
£3,256,530 (2014: £17,821,218) for its power generation projects under development. In respect of its interest in joint
ventures the Group is committed to incur capital expenditure of £16,232,097 (March 14: Nil) of their share of interest..
Guarantees and Letter of credit
The group has provided bank guarantees and letter of credits (LC) to customers and vendors in the normal course of
business. The LC provided as at 31 March 2015: £40,347,660 (2014: £66,289,044) and Bank Guarantee as at 31 March 2015:
£10,248,750 (2014: £4,348,072) are treated as contingent liabilities until such time it becomes probable that the company
will be required to make a payment under the guarantee.
26. Financial risk management objectives and policies
The Group's principal financial liabilities, comprises of loans and borrowings, trade and other payables, and other current
liabilities. The main purpose of these financial liabilities is to raise finance for the Group's operations. The Group has
loans and receivables, trade and other receivables, and cash and short-term deposits that arise directly from its
operations. The Group also hold investments designated at available-for-sale categories.
The Group is exposed to market risk, credit risk and liquidity risk.
The Group's senior management oversees the management of these risks. The Group's senior management advises on financial
risks and the appropriate financial risk governance framework for the Group.
The Board of Directors reviews and agrees policies for managing each of these risks which are summarised below:
Market risk
Market risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market prices comprise three types of risk: interest rate risk, currency risk and other price
risk, such as equity risk. Financial instruments affected by market risk include loans and borrowings, deposits,
available-for-sale investments.
The sensitivity analyses in the following sections relate to the position as at 31 March 2015 and 31 March 2014
The following assumptions have been made in calculating the sensitivity analyses:
(i) The sensitivity of the statement of comprehensive income is the effect of the assumed changes in interest rates on
the net interest income for one year, based on the average rate of borrowings held during the year ended 31 March 2014, all
other variables being held constant. These changes are considered to be reasonably possible based on observation of current
market conditions.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Group's exposure to the risk of changes in market interest rates relates primarily to
the Group's long-term debt obligations with average interest rates.
At 31 March 2015 and 31 March 2014, the Group had no interest rate derivatives.
The calculations are based on a change in the average market interest rate for each period, and the financial instruments
held at each reporting date that are sensitive to changes in interest rates. All other variables are held constant. If
interest rates increase or decrease by 100 basis points with all other variables being constant, the Group's profit after
tax for the year ended 31 March 2015 would decrease or increase by £ 2,047,577 (2014: £ 627,770).
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rate. The Group's presentation currency is the Great Britain £ A majority of our assets are
located in India where the Indian rupee is the functional currency for our subsidiaries. Currency exposures also exist in
the nature of capital expenditure and services denominated in currencies other than the Indian rupee.
The Group's exposure to foreign currency arises where a Group company holds monetary assets and liabilities denominated in
a currency different to the functional currency of that entity:
As at March 31 2015 As at March 31 2014
Currency Financial Assets Financial Liabilities Financial Assets Financial Liabilities
United states Dollar (USD) - 15,590,116 - 18,557,553
Set out below is the impact of a 10% change in the US dollar on profit arising as a result of the revaluation of the
Group's foreign currency financial instruments:
As at March 31 2015 As at March 31 2014
Currency Closing Rate Effect of 10% Strengthening of GBP on net earnings Closing Rate Effect of 10% Strengthening of GBP on net earnings
United states Dollar (USD) 62.53 1,546,417 59.75 (1,115,318)
The impact on total equity is the same as the impact on net earnings as disclosed above.
Credit risk analysis
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily for trade and
other receivables) and from its financing activities, including short-term deposits with banks and financial institutions,
and other financial assets.
The maximum exposure for credit risk at the reporting date is the carrying value of each class of financial assets
amounting to £ 37,889,350 (2014: £ 44,805,445).
The Group has exposure to credit risk from accounts receivable balances on sale of electricity. The operating entities of
the group has entered into short term agreements with transmission companies incorporated by the Indian state government
(TANGEDCO) to sell the electricity generated Therefore the group is committed, in the short term, to sell power to these
customers and the potential risk of default is considered low. For other customers, the Group ensures concentration of
credit does not significantly impair the financial assets since the customers to whom the exposure of credit is taken are
well established and reputed industries engaged in their respective field of business. The credit worthiness of customers
to which the Group grants credit in the normal course of the business is monitored regularly. The credit risk for liquid
funds is considered negligible, since the counterparties are reputable banks with high quality external credit ratings.
The Group's management believes that all the above financial assets, except as mentioned in note 13 and 14, are not
impaired for each of the reporting dates under review and are of good credit quality.
Liquidity risk analysis
The Group's main source of liquidity is its operating businesses. The treasury department uses regular forecasts of
operational cash flow, investment and trading collateral requirements to ensure that sufficient liquid cash balances are
available to service on-going business requirements. The Group manages its liquidity needs by carefully monitoring
scheduled debt servicing payments for long-term financial liabilities as well as cash-outflows due in day-to-day business.
Liquidity needs are monitored in various time bands, on a day-to-day and week-to-week basis, as well as on the basis of a
rolling 90 day projection. Long-term liquidity needs for a 90 day and a 30 day lookout period are identified monthly.
The Group maintains cash and marketable securities to meet its liquidity requirements for up to 60 day periods. Funding for
long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities and the ability to
sell long-term financial assets.
The following is an analysis of the group contractual undiscounted cash flows payable under financial liabilities at 31
March 2015 and 31 March 2014:
As at 31 March 2015
Current - Non - current Total
within 12 months 1-5 years Later than 5 years
Borrowings 49,981,971 198,541,687 104,228,299 352,751,957
Trade and other payables 48,152,547 16,795,079 - 64,947,626
Other current liabilities 625,957 - - 625,957
Total 98,760,475 215,336,766 104,228,299 418,325,540
As at 31 March 2014
Current - Non - current Total
within 12 months 1-5 years Later than 5 years
Borrowings 26,168,359 193,853,235 14,248,051 234,269,645
Trade and other payables 35,174,303 24,997,526 - 60,171,829
Other current liabilities 227,143 - - 227,143
Total 61,569,805 218,850,761 14,248,051 294,668,617
Capital management
Capital includes equity attributable to the equity holders of the parent and debt less cash and cash equivalents.
The Group's capital management objectives include, among others:
· Ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and
maximise shareholder value/
· Ensure Group's ability to meet both its long-term and short-term capital needs as a going concern;
· To provide an adequate return to shareholders
by pricing products and services commensurately with the level of risk.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To
maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to
shareholders or issue new shares.
No changes were made in the objectives, policies or processes during the years end 31 March 2015 and 2014.
The Group maintains a mixture of cash and cash equivalents, long-term debt and short-term committed facilities that are
designed to ensure the Group has sufficient available funds for business requirements. There are no imposed capital
requirements on Group or entities, whether statutory or otherwise.
The Capital for the reporting periods under review is summarised as follows:
31 March 2015 31 March 2014
Total equity 165,000,125 136,628,267
Less: Cash and cash equivalents (6,805,449) (6,636,577)
Capital 158,194,675 129,991,690
Total equity 165,000,125 136,628,267
Add: Borrowings (including buyer's credit) 260,788,187 194,769,946
Overall financing 425,788,311 331,398,213
Capital to overall financing ratio 0.37 0.48
The disbursements of term loans received during the year have resulted in a decrease in capital to overall financing
ratio.
27. Summary of financial assets and liabilities by category and their fair values
Set out below is a comparison by class of the carrying amounts and fair value of the Group's financial instruments that are
carried in the financial statements:
Carrying amount Fair value
31 March 2015 31 March 2014 31 March 2015 31 March 2014
Financial assets
Loans and receivables
· Cash and cash equivalents 1 6,805,449 6,636,577 6,805,449 6,636,577
· Restricted cash 1 8,088,207 7,646,950 8,088,207 7,646,950
· Current trade receivables 1 28,628,701 21,008,401 28,628,701 21,008,401
Available-for-sale instruments 3 1,233,620 16,157,890 1,233,620 16,157,890
44,755,977 51,449,818 44,755,977 51,449,818
Financial liabilities
Term loans 258,694,310 192,426,677 258,694,310 192,426,677
LC Bill discounting & buyers' credit facility 1 2,093,877 2,343,269 2,093,877 2,343,269
Current trade and other payables 1 48,152,547 35,174,303 48,152,547 35,174,303
Non-current trade and other payables 2 16,795,079 24,997,526 16,795,079 24,997,526
325,735,813 254,941,775 325,735,813 254,941,775
The fair value of the financial assets and liabilities are included at the price that would be received to sell an asset or
paid to transfer a liability (i.e. a exit price) in an ordinary transaction between market participants at the measurement
date. The following methods and assumptions were used to estimate the fair values.
1. Cash and short-term deposits, trade receivables, trade payables, and other borrowings like short-term loans,
current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
2. The fair value of loans from banks and other financial indebtedness, obligations under finance leases, financial
liabilities at fair value through profit or loss as well as other non-current financial liabilities is estimated by
discounting future cash flows using rates currently available for debt or similar terms and remaining maturities.
3. Fair value of available-for-sale instruments held for trading purposes are derived from quoted market prices in
active markets. Fair value of available-for-sale unquoted equity instruments are derived from valuation performed at the
year end.
Fair value measurements recognised in the statement of financial position
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at
fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical
assets or liabilities.
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices).
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the
asset or liability that are not based on observable market data (unobservable inputs).
Level 1 Level 2 Level 3 Total
Available-for-sale financial assets
Unquoted securities - - - -
Quoted securities 1,233,620 - - 1,233,620
Total 1,233,620 - - 1,233,620
There were no transfers between Level 1 and 2 in the period.
The Group's finance team performs valuations of financial items for financial reporting purposes, including Level 3 fair
values. Valuation techniques are selected based on the characteristics of each instrument, with the overall objective of
maximising the use of market-based information. The finance team reports directly to the chief financial officer (CFO).
Valuation processes and fair value changes are discussed by the Board of Directors at least every year, in line with the
Group's reporting dates.
The fair value of contingent consideration related to the level 3 investments is estimated using a present value technique.
The £ Nil (2014: £ 274,181) fair value is estimated by discounting the estimated future cash outflows, adjusting for risk
at 17%.
The valuation techniques used for instruments categorised in Levels 3 are described below:
31 March 2015 31 March 2014
Opening balance - 274,181
Losses through profit or loss - 274,181
Balance -
Total amount included in profit or loss for unrealized losses on level 3 instruments under finance costs - 274,181
28. Post-reporting date events
No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorisation
-ends-
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The company news service from the London Stock ExchangeRecent news on OPG Power Ventures
See all newsREG - OPG Power Ventures - GST (Goods and Services Tax) Rate Revision on Coal
AnnouncementREG - OPG Power Ventures - Final Results for the Year Ended 31 March 2025
AnnouncementREG - OPG Power Ventures - Appointment of Non-executive Director
AnnouncementREG - OPG Power Ventures - Appointment of Non-executive Director
AnnouncementREG - OPG Power Ventures - Trading Update
Announcement