Final Results

RNS Number : 5154N

OPG Power Ventures plc

30 September 2021

OPG Power Ventures plc

("OPG", the "Group" or the "Company")

Final results for the year ended 31 March 2021

OPG (AIM: OPG), the developer and operator of power generation assets in India, announces its final results for the year ended 31 March 2021 ("FY21").

FY21 Highlights

· Revenue decreased to £ 93 . 8 million from £1 5 4. 0 million in FY 20 due to the COVID-19 disruption in the Indian economy;

· Total generation (including deemed) of 2.1 billion units (2.7 billion units in FY20);

· Adjusted EBITDA of £3 3 . 7 million ( 36.0 % margin) compared with £3 1 . 2 million (2 0 . 2 % margin) in FY 20;

· Profit before tax from continued operations was £ 2 1 .6 million compared with £1 4 . 5 million in FY 20;

· £8.2 million (Rs.7.8 billion) term loan principal repayments made during FY21; Borrowings reduced with gross debt of £ 46.6 million at 31 March 20 21 , compared to £ 56. 8 million at 31 March 20 20;

· Net debt reduced from £53.4m at 31 March 2020 to £16.2m at 31 March 2021 ;

Summary financial information

	£ million
	FY 21	FY20
Revenue	93.8	154.0
Other Operating Income	9.4	-
Adjusted EBITDA *	33.7	31.2
Profit before tax from continuing operations	21.6	14.5
Profit/(Loss) from discontinued operations, incl. NCI	1.0	(2.1)
Profit for the year	14.1	8.0
Earnings per share (pence)	3.5	2.1
Net debt **	16.2	53.4
N et debt to Adjusted EBITDA ratio	0.5	1.7
Total generation (including deemed) (billion kWh)	2.1	2.7

* See definition of Adjusted EBITDA on page 7

** See definition of Net debt on page 10

Post year end developments and highlights

· Plant Load Factor ("PLF") for the f ive month period to 31 August 2021 was 72.8% (H1 FY20: 46%);

· Average tariff for the five months period to 31 August 2021 was Rs5.42, down 4.4 per cent (FY21: Rs5.67) due to the impact of COVID-19. Average Tariff was increased to c. Rs5.58 effective from August 2021;

· Subsequent to 31 March 2021, additional 5.7 million (Rs.0.6 billion) collected from a customer in respect of historic contractual claims;

· International coal prices have steadily gained since April, due to firmer Chinese demand and tighter supplies caused by rain-related disruptions in Indonesia;

· I n June 2021, Environmental, Social and Governance (" ESG") Board Committee was created and Mr. Michael Grasby was appointed as Chairman of this committee. F irst- ever standalone FY21 ESG report was issued and is available on the Company's website.

COVID-19, Vaccination and the Indian Economy update

· In June 2021, World Bank's Global Economic Outlook projected FY22 economic growth forecast for India at 8.3%. IMF revised its India growth forecast to 9.5% for FY22;

· India faced a severe second wave of COVID-19 infections starting February 2021 which resulted in economic slowdown. The number of infected cases peaked in the middle of May 2021;

· Since 16 January 2021, India administered the rollout of vaccines to its citizens and at least 0.75 billion doses of COVID vaccines have been administered. Based on recently reported data, currently around over eight million doses are being administered daily;

· Currently COVID-19 cases are reducing and state governments are now unlocking and easing restrictions, in phases;

· On 1 April 2021, the deadline for meeting emission norms for a majority of coal-based power plants in India, was extended from 2021 to December 2024.

Arvind Gupta, Chairman said: "We are proud to report that OPG was comfortably in line with FY21 market expectations despite the disruption caused by COVID-19 and unfavourable market conditions. OPG delivered very strong cash generation and achieved a significant reduction in debt during the year. We will also continue to focus on advancing our ESG agenda."

Investor presentation

There will be a virtual presentation on the Investor Meet Company platform for investors and analysts at 11 am on Monday, 4 October 2021. Those wishing to attend should register for the presentation at: https://www.investormeetcompany.com/opg-power-ventures-plc/register-investor The presentation will be available for download at http://www.opgpower.com/ A recording of the event will subsequently be available on the Company's websites.

The Company's annual report and accounts for the year ended 31 March 2021 is available on the Company's website at www.opgpower.com/and will be sent to shareholders shortly.

For further information, please visit www.opgpower.com or contact:

OPG Power Ventures PLC	+44 (0) 782 734 1323
Dmitri Tsvetkov
Cenkos Securities plc (Nominated Adviser & Broker)	+44 (0) 20 7397 8900
Stephen Keys / Katy Birkin
Tavistock (Financial PR)	+44 (0) 20 7920 3150
Simon Hudson / Nick Elwes

Chairman's Statement

Resilience, robust profitability and strong cash generation

FY21 has been a year of extraordinary challenges. The unprecedented health crisis, caused by novel coronavirus, took an immense economic and human toll globally. At OPG, we responded immediately with a comprehensive COVID-19 response plan - putting in place health and safety measures to protect our employees, running our plant operations smoothly to ensure supply of electricity to our consumers, and providing essential support and assistance to our local communities in need. Yet, even in such critical circumstances, our Company has emerged stronger reporting solid set of financial results and paving pathways for accelerated and sustainable future growth.

Despite the disruption caused by COVID-19, OPG delivered very strong cash generation, robust profitability and achieved a significant reduction in net debt during the year.

The plants' generation, including deemed generation, during FY21 was 2.1 billion units which is a 22.4 per cent reduction in generation in comparison with FY20 primarily due to the COVID-19 induced nationwide lockdown in India, with average Plant Load Factor ("PLF") at 58 per cent (FY20: 75 per cent). During FY21 average realised tariff was Rs5.52 (FY20: Rs5.67).

In FY21, the Group's revenue was £93.8 million (FY20: £154.0 million) and Adjusted EBITDA was £33.7 million (FY20: £31.2 million). Profit from continuing operations was £13.1 million (FY20: £10.2 million) and profit for the year was £14.1 million (FY20: 8.0 million).

We are proud to report that OPG was comfortably in line with FY21 market expectations despite unfavourable market conditions.

Creating shareholder value through deleveraging

In 2018, the Board took the decision to focus on our profitable, long-life assets in Chennai, and to prioritise deleveraging as a method to grow shareholders' equity. This strategy, we believe, will deliver value to shareholders with free cash flows providing significant returns to our shareholders and opportunities to grow the business further.

Since the adoption of this strategy, additional shareholder value of 17.6p per share was accrued during last four years on account of term loan repayments.

During FY21 net debt reduced from £53.4 million to £16.2 million and net debt to Adjusted EBITDA ratio reduced from 1.7 to 0.5 demonstrating the robustness of OPG's financial position. The Company remains amongst the least leveraged power companies in India.

The Board remains convinced, especially in light of COVID-19 challenges, that our strategy of maintaining operational excellence and paying down expensive borrowings was the right one to pursue for all our stakeholders.

Maximising stakeholders' long-term value

Building sustainable future

Rapid growth in urbanisation, universal electrification, and a renewable energy transition driven by climate change, implies that India's incremental power needs will largely be met by renewable energy. Our business strategy is perfectly aligned with this, offering us an opportunity to unlock value for all our stakeholders in the years to come. OPG has developed its ESG strategy which, among other matters, includes objectives to reduce its carbon footprint. As part of this strategy, the Company is evaluating various options to increase its renewable energy asset base and to establish joint ventures to roll out various energy transition technologies. These initiatives will ensure that OPG delivers year-on-year improvements to reach the Company's emissions reduction targets in the medium and longer-term.

We are happy to present our first-ever standalone FY21 ESG report which summarises the objectives, activities, and the performance of the Company from an ESG perspective to its stakeholders. This report includes examples of how we have demonstrated our commitments and applied our management approach on a range of ESG topics, including environmental stewardship, health & safety, relationship with local community, and governance.

Indian Economy and Power Sector Update

In FY21, even amidst a relatively weaker macro-economic scenario, peak power demand hit an all-time high of 190 GW. The overall power demand in the country though weaker in the first half of the fiscal year due to COVID-19 induced disruption, saw a sharp recovery in the second half. India is the third largest producer and third largest consumer of electricity in the world with installed power capacity reaching 382.15 GW as of March 2021.

In June 2021, the World Bank's Global Economic Outlook projected India's FY22 economic growth forecast at 8.3 per cent, supported by plans for higher spending on infrastructure, rural development and health services and a stronger-than-expected recovery in services. During FY23 GDP growth is expected at a rate of 7.5 per cent.

During FY21, power consumption dipped by 1 per cent to 1,271.5 BU from 1,284.4 BU in FY20. The ICRA rating agency has estimated Indian electricity demand growth at 6.0 per cent for FY22 on a year-on-year basis, considering the favourable base effect, relatively lesser impact of the second COVID-19 wave on electricity demand and the pick-up in the vaccination programme.

Over the last several months the prices of thermal coal and freight have surged sharply primarily due to increased imports of coal and other goods by China and other Asian countries on the back of post COVID-19 economic recovery. Whilst OPG is partially covered from increases in prices with fixed price agreements for coal and freight, the Company remains exposed to market fluctuations for the unhedged portion of coal consumption and freight. However, the Company is exploring various options including sourcing the coal from other geographies (including domestic sources) to reduce the per unit cost of electricity.

Outlook

During the first six months of FY22 the prices of thermal coal and freight have surged sharply primarily due to increased imports of coal and other goods by China and other Asian countries on the back of post COVID-19 economic recovery. Coal prices may not reduce significantly in the short term.

While challenges to the economy will continue in FY22, the Company has strong foundations, allowing us both to manage the ongoing COVID-19 situation and to pursue growth sustainably. The Company's medium and long-term fundamentals remain unchanged with strong cash flows and a reduction in debt enabling the long-term profitable business model, responsible growth and sustainable returns to shareholders. We will also continue to focus on advancing our ESG agenda.

I would like to extend my gratitude to all our employees who overcame challenges posed by the pandemic, as well as vendors, banks and all stakeholders for the incredible support we have received during these unprecedented and extraordinary times.

Arvind Gupta

Chairman

29 September 2021

FINANCIAL REVIEW

The following is a commentary on the Group's ﬁnancial performance for the year.

Income statement
	2021	% of revenue	2020	% of revenue
Year ended 31 March	£m	% of revenue	£m	% of revenue
Revenue	93.8		154.0
Cost of revenue (excluding depreciation)	(56.9)		(90.1)
Gross profit	36.9	39.4	64.0	41.5
Other operating income	9.4		-
Other income	1.9		0.7
Distribution, general and administrative
Expenses, expected credit loss (excluding depreciation)	(14.5)		(33.5)
Adjusted EBITDA	33.7	36.0	31.2	20.2
Share based compensation	(0.5)		(0.8)
Depreciation and amortisation	(5.7)		(6.3)
Net finance costs	(5.9)		(9.5)
Profit before tax from continuing operations	21.6	23.0	14.5	9.4
Taxation	(8.4)		(4.3)
Profit after tax from continuing operations	13.1	14.0	10.2	6.6
Profit/(loss) from discontinued operations, incl. Non-Controlling Interest	1.0		(2.1)
Profit for the year	14.1		8.0

Note: Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Revenue

Even though the Group's revenue has decreased by £60.2 million (a 39.1% decline) year on year as a result of COVID-19 induced nationwide lockdown imposed by the Indian Government, Adjusted EBITDA has increased by £2.5 million (8.2% growth) primarily due to collection of contractual claims payments from its customers under power purchase agreements amounting to £9.4 million. These contractual claims were accumulated over several years and recognised in Other operating income.

The average tariff realised during FY21 was Rs5.72 per kWh. Generation exported to captive power shareholders and other customers and billed for revenue, including deemed generation, was 2.1 billion units during FY21. The reduction in generation in comparison with generation in FY20 is due to the impact of fall in demand for power caused by COVID-19 induced nationwide lockdown.

Production and output levels from the Group's operating power plant compared to the prior year were as follows:

	FY21	FY20
Total generation, incl. "deemed" generation (million units)	2,107	2,716
Plant Load Factor (PLF) (%)¹	58	75
Average tariff (INR/unit)²	5.72	5.86

¹ Unit 3: "Deemed" PLF (%) has been included

² Average tariff includes effect of deemed offtake tariff for Unit 3. Average FY21 tariff excluding effect of deemed offtake was Rs5.52 (FY20: Rs5.67).

Gross proﬁt

Gross proﬁt ('GP') in FY21 was 39.4% of revenue (FY20: 41.5%). The decrease in GP is primarily on account of disruption caused in the economy by the nationwide lockdown induced by COVID-19.

The cost of revenue represents fuel costs. The table below shows average price of coal consumed in FY21 and FY20.

Average price of coal consumed

Financial year	Average factory gate price (INR/mt)	Average factory gate price (INR/ mKCal)
FY21	4,127	991
FY20	4,305	1,028
Change % FY20 to FY21	(4.1)	(3.6)

Adjusted EBITDA

Adjusted earnings before interest, taxation, depreciation and amortisation ('Adjusted EBITDA') is a measure of a business' cash generation from operations before depreciation, interest and exceptional and non-standard or non-operational charges, e.g. share based compensation, etc. Adjusted EBITDA is useful to analyse and compare profitability among periods and companies, as it eliminates the effects of financing and capital expenditures.

Adjusted EBITDA was £33.7 million in FY21 compared with £31.2 million in FY20 and the adjusted EBITDA margin was higher at 36.0% in FY21 against 20.2% in FY20 primarily as a result of collection of contractual claims accumulated over several years as mentioned above.

Profit from continuing operations before tax was £21.6 million compared with £14.5 million in FY20.

Profit before tax reconciliation ('PBT') (£m)	FY 21
PBT 2020-21	21.6
PBT 2019-20	14.5
Increase in PBT	7.1
Decrease in GP	(27.0)
Increase in Other Operating Income	9.4
Increase in Other Income	1.3
Decrease in Distribution, General & Administrative Expenses, Expected Credit Loss ¹	19.2
Decrease in Net Finance Costs	3.6
Decrease in Depreciation and Amortisation	0.6
Increase in PBT	7.1

¹ PBT 2019-20 includes provision for expected credit loss of £17.0 million

Taxation

The Company's operating subsidiaries are under a tax holiday period but are subject to Minimum Alternate Tax ('MAT') on their accounting profits. Any tax paid under MAT can be offset against future tax liabilities arising after the tax holiday period.

The tax expense during the year was £8.4 million comprised of current tax expense of £0.4 million and deferred tax expense of £8.0 million.

Profits after tax from continuing operations

Profits after tax from continuing operations have increased by 28.8% in FY21 to £13.1 million primarily due to collection of contractual claims payments offset by a significant provision for expected credit loss in FY20.

Assets held for sale and loss from discontinued operations

62MW Karnataka solar projects

In FY18, four Karnataka solar projects (62MW) were commissioned. The Group has a 31% equity interest in these projects.

During FY19, the Company obtained a right to exercise an option to buy an additional 30% equity interest in solar companies. Effective from FY20 this right was assigned to a third party and from FY21 the remaining related obligations and the results of the operations of solar companies are not consolidated in the Group's consolidated financial statements due to loss of control. As previously reported, after evaluation of all options, the Company decided that the most efficient way to maximise shareholders' value from the solar operations was to dispose of these interests in the solar companies and it is continuing the disposal process which met all conditions of IFRS 5 classifying the solar business as assets held for sale as at 31 March 2021. The completion of the disposal process was impacted by COVID-19.

Accordingly, the Group's funding of £16.4 million towards these projects is presented as assets held for sale in the Consolidated Statement of Financial Position as at 31 March 2021 and the gain from operations of £1.0 million is included in gain from discontinued operations in the Consolidated Statement of Comprehensive Income.

Earnings per Share (EPS)

The Company's total reported EPS in FY21 increased to 3.52 pence from 2.11 pence.

Dividend policy

It is OPG's paramount objective to maximise stakeholders' long-term value. In light of disruptions and uncertainty caused by COVID-19 and extraordinary volatility in coal prices and freight this year, the Board believes that it is in the best interests of the Company and its stakeholders to conserve cash for the repayment of debt, to fund growth in relation to ESG focused projects and to maintain a strong and resilient balance sheet to withstand the turbulent times. Therefore, the Board decided to not declare a dividend for FY21. The Board will revisit the Company's dividend policy once the impact of COVID-19 subsides and coal prices become less volatile.

Foreign exchange loss on translation

The British Pound-to-Indian Rupee exchange rate decreased to a closing rate on 31 March 2021 of £1= INR 100.81 a rate of £1= INR 93.07 on 31 March 2020 thereby resulting in an exchange loss of £12.9 million on translating foreign operations included in Other comprehensive loss.

Property, plant and equipment

The decrease in net book value of our property, plant and equipment of £19.8 million principally relates to depreciation and foreign exchange impact on account of translation offset by additions during the year.

Other non‐current assets

Other non-current assets (excluding property, plant and equipment & intangible assets) have increased by £7.7 million primarily due to increase in the non-current portion of restricted cash, representing investments in mutual funds maturing after twelve months of £8.2 million (2020: nil) allocated to debenture redemption fund earmarked towards redemption of non-convertible debentures scheduled during FY24 of £19.8 million.

Current assets

Current assets have decreased by £28.8 million from £103.3 million to £74.5 million year on year primarily as a result of the following:

· Decrease in Assets held for sale by £29.9 million due to the presentation of a 31% investment in solar companies as an equity investment held for sale versus gross presentation of assets and liabilities held for sale in FY20;

· Decrease in trade receivables by £12.1 million as a result of strong collections from the Group's captive power shareholders and customers, including old receivable balances;

· Increase in other short-term assets by £11.5 million primarily due to increase in investments in mutual funds to £13.3 million included in other short-term assets;

· Increase in cash and bank balances (including restricted cash) by £5.5 million;

· Increase in inventory holdings by £0.7 million.

Liabilities

Current liabilities have decreased by £60.7 million from £98.9 million to £38.2 million year on year primarily due to liabilities relating to assets held of sales, borrowings, and trade and other payable.

Non-current liabilities have increased by £16.7 million from £39.0 million to £55.7 million year on year primarily on account of the issuance of non-convertible debentures issued during the year to prepay term loans.

Financial position, debt, gearing and ﬁnance costs

As of 31 March 2021, total borrowings were £46.6 million (31 March 2020: £56.8 million). The gearing ratio, net debt (i.e. total borrowings minus cash and current and non-current investments in mutual funds)/(equity plus net debt), was 9% (31 March 2020: 25%). The gearing ratio is a useful measure to identify the financial risk of a company.

Despite COVID-19 related challenges, the Company has continued to pay down the debt from internal accruals and issued Non-Convertible Debentures ("NCDs") of £19.8 million (Rs2.0 billion) to finance principal repayments of the Group's existing term loans to June 2022. The Group's NCDs are repayable in June 2023 and have an interest coupon of 9.85%. The issue of the NCDs had a material positive impact upon the Group's cash flow during the uncertain COVID-19 impacted period, through a significant deferment of principal payments and the NCDs' interest coupon being lower by c.1 per cent in comparison with the existing term loans interest rate.

During FY21 net debt (total borrowings minus cash and current and non-current investments in mutual funds) reduced from £53.4 million to £16.2 million and net debt to Adjusted EBITDA ratio reduced from 1.7 to 0.5 as a result of the repayment of term loans and working capital loans, foreign exchange impact of depreciation of INR against GBP and strong cash collections achieved during the year. This demonstrates the robustness of OPG's financial position. The Company remains amongst the least leveraged power companies in India.

Based on the term loans repayment schedule the Company is expected to be term loan free by FY25.

Finance costs have decreased by £4.7 million from £11.5 million in FY20 to £6.8 million in FY21 primarily due to the impact of decrease in foreign exchange losses and reduction in interest expenses following scheduled repayments of the term loans and the issuance of the NCDs.

Finance income decreased from £2.0 million in FY20 to £0.9 million in FY21 and therefore net finance costs in FY21 amounted to £5.9 million (FY20: £9.5 million).

Current restricted cash representing deposits maturing between three to twelve months amounted to £3.2 million (31 March 2020: £7.5 million) which have been pledged as security for Letters of Credit.

Non-current restricted cash represents investments in mutual funds maturing after twelve months amounting to £8.2 million (31 March 2020: £0.03 million) allocated to the debenture redemption fund which is earmarked towards the redemption of non-convertible debentures scheduled during FY24 of £19.8 million.

Cash ﬂow

Cash flow from continuing operations before and after changes in working capital were £36.8 million (FY20: £48.2 million) and £40.2 million (FY20: £30.6 million) respectively. Net cash flow from operating activities increased from £30.6 million in FY20 to £40.2 million in FY21, an increase of £9.6 million, primarily due to collections of receivables and contractual claims relating to previous periods.

Movements (£m)	FY21	FY20
Operating cash flows from continuing operations before changes in working capital	36.8	48.2
Tax paid	(0.7)	(0.8)
Change in working capital assets and liabilities	4.1	(16.8)
Net cash generated by operating activities from continuing operations	40.2	30.6
Purchase of property, plant and equipment (net of disposals)	(0.5)	(0.6)
Investments (purchased)/sold, incl. in solar projects, shipping JV, market securities, movement in restricted cash and interest received ¹	(29.0)	3.5
Net cash (used in)/from continuing investing activities	(29.5)	2.9
Finance costs paid, incl. foreign exchange losses	(5.8)	(9.9)
Dividend paid	-	-
Total cash change from continuing operations before net borrowings	4.9	23.6

¹ Includes purchase of investments in mutual funds and other market securities of £21.5 million included in restricted cash and other short-term assets in the statement of financial position.

Dmitri Tsvetkov

Chief Financial Officer

29 September 2021

Consolidated statement of financial position
As at 31 March 2021
(All amount in £, unless otherwise stated)
		As at	As at
	Notes	31 March 2021	31 March 2020
Assets
Non-current assets
Intangible assets	14	2,394	9,045
Property, plant and equipment	15	172,716,040	192,469,395
Other long-term assets	16	69,853	509,628
Restricted cash	19	8,194,412	26,645
		180,982,699	193,014,713
Current assets
Inventories	18	12,186,644	11,480,099
Trade and other receivables	17	14,829,989	26,901,986
Other short-term assets	16	17,805,554	6,316,735
Current tax assets (net)		1,131,342	1,330,684
Restricted cash	19(b)	3,219,356	7,497,967
Cash and cash equivalents	19(a)	8,920,952	3,438,830
Assets held for sale	7(a), 7(b)	16,425,368	46,356,680
		74,519,205	103,322,981

Total assets		255,501,904	296,337,694
Equity and liabilities
Equity
Share capital	20	58,909	58,909
Share premium	20	131,451,482	131,451,482
Other components of equity		(12,735,470)	(1,322,987)
Retained earnings		41,910,280	27,818,474
Equity attributable to owners of the Company		160,685,201	158,005,878
Non-controlling interests		881,869	497,955
Total equity		161,567,070	158,503,833

Liabilities
Non-current liabilities
Borrowings	22	22,260,206	33,081,456
Non-Convertible Debentures	22	19,840,089	-
Trade and other payables	23	607,702	169,373
Deferred tax liabilities (net)	13	12,994,371	5,723,791
		55,702,368	38,974,620
Current liabilities
Borrowings	22	4,510,358	23,746,229
Trade and other payables	23	32,495,799	41,663,989
Other liabilities		1,226,309	582,241
Liabilities classified as held for sale	7(b)	-	32,866,783
		38,232,466	98,859,241
Total liabilities		93,934,834	137,833,861

Total equity and liabilities		255,501,904	296,337,694

The notes are an integral part of these consolidated financial statements

The financial statements were authorised for issue by the board of directors on 29 September 2021 and were signed on its behalf by:

Arvind Gupta	Dmitri Tsvetkov
Chairman	Chief Financial Officer

Consolidated statement of Comprehensive Income
For the Year ended 31 March 2021
(All amount in £, unless otherwise stated)
		Year ended	Year ended
	Notes	31 March 2021	31 March 2020
Revenue	8	93,823,933	154,040,283
Cost of revenue	9	(56,893,065)	(90,060,252)
Gross profit		36,930,868	63,980,031
Other Operating income	10(a)	9,420,712	-
Other income	10(b)	1,921,546	668,037
Distribution cost		(4,791,056)	(9,209,987)
General and administrative expenses		(7,256,153)	(8,061,622)
Expected credit loss on trade receivables	28	(3,025,055)	(17,046,480)
Depreciation and amortisation		(5,705,538)	(6,293,034)
Operating profit		27,495,324	24,036,945
Finance costs	11	(6,803,137)	(11,495,136)
Finance income	12	868,439	1,962,692
Profit before tax		21,560,626	14,504,501
Tax expense	13	(8,447,699)	(4,321,124)
Profit for the year from continued operations		13,112,927	10,183,377
Gain/(Loss) from discontinued operations, including Non-Controlling Interest	7	999,398	(2,146,275)
Profit for the year		14,112,325	8,037,102
Profit for the year attributable to:
Owners of the Company		14,091,806	8,229,504
Non - controlling interests		20,518	(192,402)
		14,112,325	8,037,102
Earnings per share from continued operations
Basic earnings per share (in pence)	25	3.27	2.60
Diluted earnings per share (in pence)		3.25	2.59
Earnings/(Loss) per share from discontinued operations
Basic earnings/(loss) per share (in pence)	25	0.30	(0.50)
Diluted earnings/(loss) per share (in pence)		0.30	(0.50)
Earnings per share
-Basic (in pence)	26	3.52	2.11
-Diluted (in pence)		3.50	2.09

Other comprehensive income / (loss)
Items that will be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations		(12,860,261)	(4,560,097)
Items that will be not reclassified subsequently to profit or loss
Exchange differences on translating foreign operations, relating to non-controlling interests		(13,322)	(192,401)
Total other comprehensive income / (loss)		(12,873,583)	(4,752,498)

Total comprehensive income		1,238,741	3,284,604

Total comprehensive income / (loss) attributable to:
Owners of the Company		1,231,546	3,669,407
Non-controlling interest		7,196	(384,803)
		1,238,741	3,284,604

The notes are an integral part of these consolidated financial statements

Consolidated statement of changes in equity

For the Year ended 31 March 2021

(All amount in £, unless otherwise stated)

	Issued capital (No. of shares)	Ordinary shares	Share premium	Other reserves	Foreign currency translation reserve	Retained earnings	Total attributable to owners of parent	Non-controlling interests	Total equity

At 1 April 2019	387,910,200	57,024	129,125,915	6,650,305	(4,249,018)	21,916,422	153,500,648	882,759	154,383,407
Employee Share based payment LTIP (Note 21)	-	-	-	835,822	-	-	835,822	-	835,822
Dividends (Note 20)	12,823,311	1,885	2,325,567	-	-	(2,327,452)	-	-	-
Transaction with owners	12,823,311	1,885	2,325,567	835,822	-	(2,327,452)	835,822	-	835,822

Profit for the year	-	-	-	-	-	8,229,504	8,229,504	(192,402)	8,037,102
Other comprehensive income	-	-	-	-	(4,560,096)	-	(4,560,096)	(192,402)	(4,752,497)
Total comprehensive income	-	-	-	-	(4,560,096)	8,229,504	3,669,408	(384,804)	3,284,604

At 31 March 2020	400,733,511	58,909	131,451,482	7,486,127	(8,809,114)	27,818,474	158,005,878	497,955	158,503,833

At 1 April 2020	400,733,511	58,909	131,451,482	7,486,127	(8,809,114)	27,818,474	158,005,878	497,955	158,503,833

Employee Share based payment LTIP (Note 21)	-	-	-	535,247	-	-	535,247	-	535,247

Transaction with owners	-	-	-	535,247	-	-	535,247	-	535,247

Profit for the year	-	-	-	-	-	14,091,806	14,091,806	20,518	14,112,324
Deconsolidation (note 7b)	-	-	-	-	912,531	-	912,531	376,718	1,289,249
Other comprehensive income	-	-	-	-	(12,860,261)	-	(12,860,261)	(13,322)	(12,873,583)
Total comprehensive income	-	-	-	-	(11,947,730)	14,091,806	2,144,076	383,914	2,527,990

At 31 March 2021	400,733,511	58,909	131,451,482	8,021,374	(20,756,844)	41,910,280	160,685,201	881,869	161,567,070

During FY20 the Company has paid a scrip dividend of 12,823,311 shares (2019:31,601,503 shares)

The notes are an integral part of these consolidated financial statements.

Consolidated statement of cash flows

For the Year ended 31 March 2021

(All amount in £, unless otherwise stated)

		Year ended		Year ended
		31 March 2021		31 March 2020
Cash flows from operating activities
Profit before income tax including discontinued operations		22,560,024	11,365,000
Adjustments for:
(Profit)/Loss from discontinued operations, net	7	(999,398)	3,139,501
Unrealised foreign exchange loss	9(d)	46,931	1,568,333
Financial costs	11	6,756,206	9,926,804
Financial income	12	(864,156)	(1,962,692)
Share based compensation costs	21	535,247	835,822
Depreciation and amortization		5,705,538	6,293,034
Expected credit loss on Trade receivables	28	3,025,055	17,046,480
Changes in working capital
Trade and other receivables		7,404,759	4,406,823
Inventories		(1,654,539)	(4,699,650)
Other assets		4,976,235	3,121,895
Trade and other payables		(7,106,516)	(19,421,286)
Other liabilities		490,713	(217,194)
Cash generated from continuing operations		40,876,099	31,402,869
Taxes paid		(709,277)	(767,865)
Cash provided by operating activities of continuing operations		40,166,822	30,635,004
Cash used for operating activities of discontinued operations		-	(2,062,318)
Net cash provided by operating activities		40,166,822	28,572,687

Cash flows from investing activities
Purchase of property, plant and equipment (including capital advances)		(506,222)	(573,668)
Interest received		864,156	1,962,692
Movement in restricted cash		(4,655,096)	2,240,335
Purchase of investments		(25,250,994)	(725,418)
Cash (used in)/from investing activities of continuing operations		(29,548,156)	2,903,941
Cash (used in)/from investing activities of discontinued operations		-	426,425
Net cash (used in)/from investing activities		(29,548,156)	3,330,366

Cash flows from financing activities
Proceeds from borrowings (net of costs)		21,981,043	-
Repayment of borrowings		(27,938,844)	(21,620,516)
Dividend paid		-	-
Finance costs paid		(5,812,498)	(9,927,750)
Cash used in financing activities of continuing operations		(11,770,299)	(31,548,266)
Cash used in financing activities of discontinued operations		-	689,255
Net cash used in financing activities		(11,770,299)	(30,859,011)

Net (decrease)/increase in cash and cash equivalents from continuing operations		(1,151,633)	1,990,679
Net (decrease)/increase in cash and cash equivalents from discontinued operations		-	(946,638)
Net increase in cash and cash equivalents		(1,151,633)	1,044,042

Cash and cash equivalents at the beginning of the year		3,438,830	2,118,960
Cash and cash equivalents on deconsolidation		(28,560)	24,545
Exchange differences on cash and cash equivalents		6,662,317	19,330
Cash and cash equivalents of the discontinued operations		-	231,953
Cash and cash equivalents at the end of the year		8,920,954	3,438,830

Disclosure of Changes in financing liabilities:

Analysing of changes in Net debt	1 April 2020	Cash flows	Forex rate impact	31 March 2021

Working Capital loan	6,914,122	(2,704,726)	(421,082)	3,788,314
Secured loan due within one year	16,832,107	(15,443,674)	(666,390)	722,044
Borrowings grouped under Current liabilities	23,746,229	(18,148,399)	(1,087,471)	4,510,358

Secured loan due after one year	33,081,456	12,190,599	(3,171,760)	42,100,295
Borrowings grouped under Non-current liabilities	33,081,456	12,190,599	(3,171,760)	42,100,295

Analysing of changes in Net debt	1 April 2019	Cash flows	Other Changes	31 March 2020

Working Capital loan	10,433,893	(3,317,490)	(202,281)	6,914,122
Secured loan due within one year	18,435,829	(1,087,278)	(516,444)	16,832,107
Borrowings grouped under Current liabilities	28,869,722	(4,404,768)	(718,725)	23,746,229

Secured loan due after one year	51,495,208	(17,215,748)	(1,198,004)	33,081,456
Borrowings grouped under Non-current liabilities	51,495,208	(17,215,748)	(1,198,004)	33,081,456

Notes to the Consolidated Financial Statements

(All amount in £, unless otherwise stated)

1. Nature of operations

OPG Power Ventures Plc ('the Company' or 'OPGPV'), and its subsidiaries (collectively referred to as 'the Group') are primarily engaged in the development, owning, operation and maintenance of private sector power projects in India. The electricity generated from the Group's plants is sold principally to public sector undertakings and heavy industrial companies in India or in the short term market. The business objective of the group is to focus on the power generation business within India and thereby provide reliable, cost effective power to the industrial consumers and other users under the 'open access' provisions mandated by the Government of India.

2. Statement of compliance

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and the provisions of the Isle of Man, Companies Act 2006 applicable to companies reporting under IFRS.

3. General information

OPG Power Ventures Plc, a limited liability corporation, is the Group's ultimate parent Company and is incorporated and domiciled in the Isle of Man. The address of the Company's registered Office, which is also the principal place of business, is 55 Athol street, Douglas, Isle of Man IM1 1LA. The Company's ordinary shares are listed on the AIM Market of the London Stock Exchange.

The Consolidated Financial Statements for the year ended 31 March 2021 were approved and authorised for issue by the Board of Directors on 29 September 2021.

4. Recent accounting pronouncements

a. Standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by the Group

At the date of authorisation of these financial statements, certain new standards, and amendments to existing standards have been published by the IASB that are not yet effective and have not been adopted early by the Group. Information on those expected to be relevant to the Group's financial statements is provided below.

Management anticipates that all relevant pronouncements will be adopted in the Group's accounting policies for the first period beginning after the effective date of the pronouncement. New standards, interpretations and amendments not either adopted or listed below are not expected to have a material impact on the Group's financial statements.

b. Changes in accounting Standards

The following standards and amendments to IFRSs became effective for the period beginning on 1 January 2020 and did not have a material impact on the consolidated financial statements:

i) Amendments to IAS 1 and IAS 8, "Definition of Material"

In October 2018, the IASB published amendments to IAS 1, "Presentation of Financial Statements" and IAS 8, "Accounting Policies, Changes in Accounting Estimates and Errors" regarding the definition of material. The amendments standardize and clarify the definition of material and its application to disclosures in financial statements presented in the IFRSs. The amendments have no impact on Group's Consolidated Financial Statements.

ii) Amendments to IFRS 3, "Definition of a Business"

In October 2018, the IASB published amendments to IAS 3, "Definition of a Business." The primary purpose of these amendments is to help distinguish between a business and a group of assets. A business comprises a group of activities and assets that involve at least one resource input and one substantive process that together contribute significantly to the ability to generate outputs. The IASB has introduced a concentration test that permits a simplified assessment of whether a set of activities and assets is a business. It is not a business if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, in which case IFRS 3 does not apply. The amendments have no impact on Group's Consolidated Financial Statements.

iii) Amendments to References to the Conceptual Framework

In March 2018, the IASB published Amendments to References to the Conceptual Framework in IFRS. The amendments have no impact on Group's Consolidated Financial Statements.

iv) Amendments to IFRS 9, IAS 39 and IFRS 7, "Interest Rate Benchmark Reform"

In September 2019, the IASB published amendments to IFRS 9, IAS 39 and IFRS 7, "Interest Rate Benchmark Reform." The Phase 1 amendments of the IASB's Interest Rate Benchmark Reform project (IBOR reform) provide for temporary exemption from applying specific hedge accounting requirements to hedging relationships that are directly affected by IBOR reform. The exemptions have the effect that IBOR reform should not generally cause hedge relationships to be terminated due to uncertainty about when and how reference interest rates will be replaced. However, any hedge ineffectiveness should continue to be recorded in the income statement under both IAS 39 and IFRS 9. Furthermore, the amendments set out triggers for when the exemptions will end, which include the uncertainty arising from IBOR reform. The amendments have no impact on Group's Consolidated Financial Statements.

v) Amendments to IFRS 16, "Covid-19-Related Rent Concessions-Amendment to IFRS 16"

In May 2020, the IASB issued Covid-19-Related Rent Concessions (Amendment to IFRS 16) that provides practical relief to lessees in accounting for rent concessions occurring as a direct consequence of Covid-19, by introducing a practical expedient to IFRS 16. The practical expedient permits a lessee to elect not to assess whether a Covid-19-related rent concession is a lease modification. A lessee that makes this election shall account for any change in lease payments resulting from the Covid-19-related rent concession the same way it would account for the change applying IFRS 16 if the change were not a lease modification. The practical expedient applies only to rent concessions occurring as a direct consequence of Covid-19 and only if all of the prescribed conditions are met. The Group has not received any rent concessions and so has not early adopted the amendment as it would have no impact on the presentation of these Financial Statements.

c). Standards and Interpretations Not Yet Applicable

The IASB and the IFRS IC have issued the following additional standards and interpretations. Group does not apply these rules because their application is not yet mandatory. Currently, however, these adjustments are not expected to have a material impact on the consolidated financial statements of the Group:

i) IFRS 17, "Insurance Contracts," published in May 2017, expected first-time application in next fiscal year.

ii) Amendments to IFRS 4, "Insurance Contracts-Extension of the Temporary Exemption from IFRS 9," published in June 2020, first-time application in fiscal year 2021.

5. Summary of significant accounting policies

a) Basis of preparation

The consolidated financial statements of the Group have been prepared on a historical cost basis, except for financial assets and liabilities at fair value through profit or loss and financial assets measured at FVPL.

The consolidated financial statements are presented in accordance with IAS 1 Presentation of Financial Statements and have been presented in Great Britain Pounds ('₤'), the functional and presentation currency of the Company.

During FY2019, the Company obtained a right to exercise an option to buy additional 30% equity interest in solar companies. Effective from FY2021 this right was re-assigned to a third party along with the related obligations and the results of the operations of solar companies Aavanti Solar Energy Private Limited, Mayfair Renewable Energy (I) Private Limited, Aavanti Renewable Energy Private Limited and Brics Renewable Energy Private Limited are not consolidated in Group's consolidated financial statements due to loss of control. The Group continues owning a 31% equity interest in the solar companies. As it was previously reported, after evaluation of all options, the Company decided that the most efficient way to maximise shareholders' value from solar operations is to dispose solar companies and it initiated process of disposition of solar companies which met all conditions of IFRS 5 for classification of solar business as Assets held for sale at 31 March 2021 (Note 7(b)).

Going concern

As at 31 March 2021 the Group had £8.9m in cash and net current assets of £36.3m. The directors and management have prepared a cash flow forecast to September 2022, 12 months from the date this report, which has been approved.

The Group experiences sensitivity in its cash flow forecasts due to the exposure to potential increase in USD denominated coal prices and a decrease in the value of the Indian Rupee. The Directors and management are confident that the Group will be trading in line with its forecast and that any exposure to a fluctuation in coal prices or the exchange rate INR/USD has been taken into consideration and therefore prepared the financial statements on a going concern basis.

COVID-19 virus, a global pandemic has affected the world economy leading to significant decline and volatility in financial markets and decline in economic activities. The Group has considered the possible effects that may result from the pandemic on the carrying amounts of receivables and other financial assets and carried out a Reverse Stress Test (RST). In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Group, as at the date of approval of these financial statements has used internal and external sources of information. The Group has performed sensitivity analysis on the assumptions used for business projections and based on current estimates expects the carrying amount of these assets will be recovered and no material impact on the financial results inter-alia including the carrying value of various current and non-current assets are expected to arise for the year ended 31 March 2021. The Group will continue to closely monitor any variation due to the changes in situation and these changes will be taken into consideration, if necessary, as and when they crystalise. However, electricity being an essential commodity the impact on industry has been comparatively lower. The operating assets of the Group primarily are located in India. The Government of India with Reserve Bank of India (RBI) have announced various regulatory measures to help the industry. The Group has opted for such measures for deferment of payment of principal and interest on term loans and also interest on working capital loans. The Group raised approximately £19.8m (₹ 2000 million) during June 2020 through non-convertible debentures (NCDs) issue with a three years term and coupon rate of 9.85%. The NCD's proceeds were used to repay the FY21 and FY22 (i.e. to March 2022) principal term loans obligations. All debt covenants are met and have sufficient headroom. The Group has also availed the Emergency Credit Line Guarantee Scheme (ECLGS) and COVID Emergency support loans during the year aggregating to £2.7 million. The Group collected full amount of receivables from its principle customer of approximately £16.4m and historical contractual claims payments from its customers under the power purchase agreements amounting to £9.4m which were accumulated over several periods. These measures strengthened the Group's financial position at this time of economic slowdown and also substantially eased the cash flow burden on account of the Group having repaid the principal term loan obligation for FY21 and FY22 and major recoveries of overdues towards power supply from our principal customer TANGEDCO. Based on the RST analysis, we can conclude that the Group is in strong position to navigate the current situation caused by Covid-19 pandemic and going concern is not an issue.

b) Basis of consolidation

The consolidated financial statements include the assets, liabilities and results of the operation of the Company and all of its subsidiaries as of 31 March 2021. All subsidiaries have a reporting date of 31 March.

A subsidiary is defined as an entity controlled by the Company. The parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. Subsidiaries are fully consolidated from the date of acquisition, being the date on which effective control is acquired by the Group, and continue to be consolidated until the date that such control ceases.

All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.

Non-controlling interest represents the portion of profit or loss and net assets that is not held by the Group and is presented separately in the consolidated statement of comprehensive income and within equity in the consolidated statement of financial position, separately from parent shareholders' equity. Acquisitions of additional stake or dilution of stake from/ to non-controlling interests/ other venturer in the Group where there is no loss of control are accounted for as an equity transaction, whereby, the difference between the consideration paid to or received from and the book value of the share of the net assets is recognised in 'other reserve' within the statement of changes in equity.

c) Investments in associates and joint ventures

Investments in associates and joint ventures are accounted for using the equity method. The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise the Group's share of the profit or loss and other comprehensive income of the associate and joint venture, adjusted where necessary to ensure consistency with the accounting policies of the Group.

Unrealised gains and losses on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group's interest in those entities. Where unrealised losses are eliminated, the underlying asset is also tested for impairment.

d) List of subsidiaries, joint ventures, and associates

Details of the Group's subsidiaries and joint ventures, which are consolidated into the Group's consolidated financial statements, are as follows:

i) Subsidiaries
Subsidiaries	Immediate parent	Country of incorporation	% Voting Right		% Economic interest
Subsidiaries	Immediate parent	Country of incorporation	March 2021	March 2020	March 2021	March 2020
Caromia Holdings limited ('CHL')	OPGPV	Cyprus	100	100	100	100
Gita Power and Infrastructure Private Limited, ('GPIPL')	CHL	India	100	100	100	100
OPG Power Generation Private Limited ('OPGPG')	GPIPL	India	71.25	73.16	99.90	99.91
Samriddhi Solar Power LLP(*)	OPGPG	India	-	73.16	-	99.91
Samriddhi Surya Vidyut Private Limited	OPGPG	India	71.25	73.16	99.90	99.91
OPG Surya Vidyut LLP(*)	OPGPG	India	-	73.16	-	99.91
Powergen Resources Pte Ltd	OPGPV	Singapore	98.56	98.66	100	100
Avanti Solar Energy Private Limited(**)	OPGPG	India	Associate 31%	31	Associate 31%	31
Mayfair Renewable Energy (I) Private Limited(**)	OPGPG	India	Associate 31%	31	Associate 31%	31
Avanti Renewable Energy Private Limited(**)	OPGPG	India	Associate 31%	31	Associate 31%	31
Brics Renewable Energy Private Limited(**)	OPGPG	India	Associate 31%	31	Associate 31%	31

(*) During FY21 withdrawn as a partner from LLP

(**) Effective from FY21, the results of operations of Solar companies Aavanti Solar Energy Private Limited, Mayfair Renewable Energy (I) Private Limited, Aavanti Renewable Energy Private Limited and Brics Renewable Energy Private Limited are not consolidated in Group's consolidated financial statements due to loss of control.

ii) Financial assets measured at FVPL (Assets Held for sale) - Joint ventures (Note 7(a))

Joint ventures	Venturer	Country of incorporation	% Voting right		% Economic interest
Joint ventures	Venturer	Country of incorporation	March 2021	March 2020	March 2021	March 2020
Padma Shipping Limited ("PSL")	OPGPV / OPGPG	Hong Kong	50	50	50	50

e) Foreign currency translation

The functional currency of the Company is the Great Britain Pound Sterling (£). The Cyprus entity is an extension of the parent and pass through investment entity. Accordingly, the functional currency of the subsidiary in Cyprus is the Great Britain Pound Sterling. The functional currency of the Company's subsidiaries operating in India, determined based on evaluation of the individual and collective economic factors is Indian Rupees ('₹' or 'INR'). The presentation currency of the Group is the Great Britain Pound (£).

At the reporting date the assets and liabilities of the Group are translated into the presentation currency at the rate of exchange prevailing at the reporting date and the income and expense for each statement of profit or loss are translated at the average exchange rate (unless this average rate is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expense are translated at the rate on the date of the transactions). Exchange differences are charged/ credited to other comprehensive income and recognized in the currency translation reserve in equity.

Transactions in foreign currencies are translated at the foreign exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Statement of financial position date are translated into functional currency at the foreign exchange rate ruling at that date. Aggregate gains and losses resulting from foreign currencies are included in finance income or costs within the profit or loss.

INR exchange rates used to translate the INR financial information into the presentation currency of Great Britain Pound (£) are the closing rate as at 31 March 2021: 100.81 (2020: 93.07) and the average rate for the year ended 31 March 2021: 96.72 (2020: 89.97).

f) Revenue recognition

In accordance with IFRS 15 - Revenue from contracts with customers, the Group recognises revenue to the extent that it reflects the expected consideration for goods or services provided to the customer under contract, over the performance obligations they are being provided. For each separable performance obligation identified, the Group determines whether it is satisfied at a "point in time" or "over time" based upon an evaluation of the receipt and consumption of benefits, control of assets and enforceable payment rights associated with that obligation. If the criteria required for "over time" recognition are not met, the performance obligation is deemed to be satisfied at a "point in time". Revenue principally arises as a result of the Group's activities in electricity generation and distribution. Supply of power and billing satisfies performance obligations. The supply of power is invoiced in arrears on a monthly basis and generally the payment terms within the Group are 10 to 45 days.

Revenue

Revenue from providing electricity to captive power shareholders and sales to other customers is recognised on the basis of billing cycle under the contractual arrangement with the captive power shareholders and customers and reflects the value of units of power supplied and the applicable tariff after deductions or discounts. Revenue is earned at a point in time of joint meter reading by both buyer and seller for each billing month.

Interest and dividend

Revenue from interest is recognised as interest accrued (using the effective interest rate method). Revenue from dividends is recognised when the right to receive the payment is established.

g) Operating expenses

Operating expenses are recognised in the statement of profit or loss upon utilisation of the service or as incurred.

h) Taxes

Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised in other comprehensive income or directly in equity.

Current income tax assets and/or liabilities comprise those obligations to, or claims from, taxation authorities relating to the current or prior reporting periods, that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the financial statements.

Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with investments in subsidiaries is not provided if reversal of these temporary differences can be controlled by the Group and it is probable that reversal will not occur in the foreseeable future.

Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are always provided for in full.

Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised against future taxable income. Deferred tax assets and liabilities are offset only when the Group has a right and the intention to set off current tax assets and liabilities from the same taxation authority. Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in profit or loss, except where they relate to items that are recognised in other comprehensive income or directly in equity, in which case the related deferred tax is also recognised in other comprehensive income or equity, respectively.

i) Financial assets

IFRS 9 Financial Instruments contains regulations on measurement categories for financial assets and financial liabilities. It also contains regulations on impairments, which are based on expected losses.

Financial assets are classified as financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income (FVOCI) and financial assets measured at fair value through profit and loss (FVPL) based on the business model and the characteristics of the cash flows. If a financial asset is held for the purpose of collecting contractual cash flows and the cash flows of the financial asset represent exclusively interest and principal payments, then the financial asset is measured at amortized cost. A financial asset is measured at fair value through other comprehensive income (FVOCI) if it is used both to collect contractual cash flows and for sales purposes and the cash flows of the financial asset consist exclusively of interest and principal payments. Unrealized gains and losses from financial assets measured at fair value through other comprehensive income (FVOCI), net of related deferred taxes, are reported as a component of equity (other comprehensive income) until realized. Realized gains and losses are determined by analyzing each transaction individually. Debt instruments that do not exclusively serve to collect contractual cash flows or to both generate contractual cash flows and sales revenue, or whose cash flows do not exclusively consist of interest and principal payments are measured at fair value through profit and loss (FVPL). For equity instruments that are held for trading purposes the group has uniformly exercised the option of recognizing changes in fair value through profit or loss (FVPL). Refer to note 29 "Summary of financial assets and liabilities by category and their fair values".

Impairments of financial assets are both recognized for losses already incurred and for expected future credit defaults. The amount of the impairment loss calculated in the determination of expected credit losses is recognized on the income statement. Impairment provisions for current and non-current trade receivables are recognised based on the simplified approach within IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses. During this process the probability of the non-payment of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.

j) Financial liabilities

The Group's financial liabilities include borrowings and trade and other payables. Financial liabilities are measured subsequently at amortised cost using the effective interest method. All interest-related charges and, if applicable, changes in an instrument's fair value that are reported in profit or loss are included within 'finance costs' or 'finance income'.

k) Fair value of financial instruments

The fair value of financial instruments that are actively traded in organised financial markets is determined by reference to quoted market prices at the close of business on the Statement of financial position date. For financial instruments where there is no active market, fair value is determined using valuation techniques. Such techniques may include using recent arm's length market transactions; reference to the current fair value of another instrument that is substantially the same; discounted cash flow analysis or other valuation models.

l) Property, plant and equipment

Property, plant and equipment are stated at historical cost, less accumulated depreciation and any impairment in value. Historical cost includes expenditure that is directly attributable to property plant & equipment such as employee cost, borrowing costs for long-term construction projects etc, if recognition criteria are met. Likewise, when a major inspection is performed, its costs are recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repairs and maintenance costs are recognised in the profit or loss as incurred.

Land is not depreciated. Depreciation on all other assets is computed on straight-line basis over the useful life of the asset based on management's estimate as follows:

Nature of asset	Useful life (years)
Buildings	40
Power stations	40
Other plant and equipment	3-10
Vehicles	5-11

Assets in the course of construction are stated at cost and not depreciated until commissioned.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the profit or loss in the year the asset is derecognised.

The assets residual values, useful lives and methods of depreciation of the assets are reviewed at each financial year end, and adjusted prospectively if appropriate.

m) Intangible assets

Acquired software

Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and install the specific software.

Subsequent measurement

All intangible assets, including software are accounted for using the cost model whereby capitalised costs are amortised on a straight-line basis over their estimated useful lives, as these assets are considered finite. Residual values and useful lives are reviewed at each reporting date. The useful life of software is estimated as 4 years.

n) Leases

All leases are accounted for by recognising a right-of-use asset and a lease liability except for:

• Leases of low value assets; and

• Leases with a duration of 12 months or less.

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the group's incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate. On initial recognition, the carrying value of the lease liability also includes:

• amounts expected to be payable under any residual value guarantee;

• the exercise price of any purchase option granted in favour of the group if it is reasonable certain to assess that option;

• any penalties payable for terminating the lease, if the term of the lease has been estimated in the basis of termination option being exercised.

Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:

• lease payments made at or before commencement of the lease;

• initial direct costs incurred; and

• the amount of any provision recognised where the group is contractually required to dismantle, remove or restore the leased asset (typically leasehold dilapidations)

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely, this is judged to be shorter than the lease term. When the Group revises its estimate of the term of any lease (because, for example, it re-assesses the probability of a lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted using a revised discount rate. The carrying value of lease liabilities is similarly revised when the variable element of future lease payments dependent on a rate or index is revised, except the discount rate remains unchanged. In both cases an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortised over the remaining (revised) lease term. If the carrying amount of the right-of-use asset is adjusted to zero, any further reduction is recognised in profit or loss.

o) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets. Interest income earned on the temporary investment of specific borrowing pending its expenditure on qualifying assets is deducted from the costs of these assets.

Gains and losses on extinguishment of liability, including those arising from substantial modification from terms of loans are not treated as borrowing costs and are charged to profit or loss.

All other borrowing costs including transaction costs are recognized in the statement of profit or loss in the period in which they are incurred, the amount being determined using the effective interest rate method.

p) Impairment of non-financial assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's (CGU) fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries or other available fair value indicators.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset's or cash-generating unit's recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the profit or loss.

q) Non-current assets Held for Sale and Discontinued Operations

Non-current assets and any corresponding liabilities held for sale and any directly attributable liabilities are recognized separately from other assets and liabilities in the balance sheet in the line items "Assets held for sale" and "Liabilities associated with assets held for sale" if they can be disposed of in their current condition and if there is sufficient probability of their disposal actually taking place. Discontinued operations are components of an entity that are either held for sale or have already been sold and can be clearly distinguished from other corporate operations, both operationally and for financial reporting purposes. Additionally, the component classified as a discontinued operation must represent a major business line or a specific geographic business segment of the Group. Non-current assets that are held for sale either individually or collectively as part of a disposal group, or that belong to a discontinued operation, are no longer depreciated. They are instead accounted for at the lower of the carrying amount and the fair value less any remaining costs to sell. If this value is less than the carrying amount, an impairment loss is recognized. The income and losses resulting from the measurement of components held for sale as well as the gains and losses arising from the disposal of discontinued operations, are reported separately on the face of the income statement under income/loss from discontinued operations, net, as is the income from the ordinary operating activities of these divisions. Prior-year income statement figures are adjusted accordingly. However, there is no reclassification of prior-year balance sheet line items attributable to discontinued operations.

r) Cash and cash equivalents

Cash and cash equivalents in the Statement of financial position includes cash in hand and at bank and short-term deposits with original maturity period of 3 months or less.

For the purpose of the consolidated cash flow statement, cash and cash equivalents consist of cash in hand and at bank and short-term deposits. Restricted cash represents deposits which are subject to a fixed charge and held as security for specific borrowings and are not included in cash and cash equivalents.

s) Inventories

Inventories are stated at the lower of cost and net realisable value. Costs incurred in bringing each product to its present location and condition is accounted based on weighted average price. Net realisable value is the estimated selling price in the ordinary course of business, less estimated selling expenses.

t) Earnings per share

The earnings considered in ascertaining the Group's earnings per share (EPS) comprise the net profit for the year attributable to ordinary equity holders of the parent. The number of shares used for computing the basic EPS is the weighted average number of shares outstanding during the year. For the purpose of calculating diluted earnings per share the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity share.

u) Other provisions and contingent liabilities

Provisions are recognised when present obligations as a result of a past event will probably lead to an outflow of economic resources from the Group and amounts can be estimated reliably. Timing or amount of the outflow may still be uncertain. A present obligation arises from the presence of a legal or constructive obligation that has resulted from past events. Restructuring provisions are recognised only if a detailed formal plan for the restructuring has been developed and implemented, or management has at least announced the plan's main features to those affected by it. Provisions are not recognised for future operating losses.

Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money is material.

Any reimbursement that the Group can be virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision. All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.

In those cases where the possible outflow of economic resources as a result of present obligations is considered improbable or remote, no liability is recognised, unless it was assumed in the course of a business combination. In a business combination, contingent liabilities are recognised on the acquisition date when there is a present obligation that arises from past events and the fair value can be measured reliably, even if the outflow of economic resources is not probable. They are subsequently measured at the higher amount of a comparable provision as described above and the amount recognised on the acquisition date, less any amortisation.

v) Share based payments

The Group operates equity-settled share-based remuneration plans for its employees. None of the Group's plans feature any options for a cash settlement.

All goods and services received in exchange for the grant of any share-based payment are measured at their fair values. Where employees are rewarded using share-based payments, the fair values of employees' services is determined indirectly by reference to the fair value of the equity instruments granted. This fair value is appraised at the grant date and excludes the impact of non-market vesting conditions (for example profitability and sales growth targets and performance conditions).

All share-based remuneration is ultimately recognised as an expense in profit or loss with a corresponding credit to 'Other Reserves'.

If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Non-market vesting conditions are included in assumptions about the number of options that are expected to become exercisable. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting.

Upon exercise of share options, the proceeds received net of any directly attributable transaction costs up to the nominal value of the shares issued are allocated to share capital with any excess being recorded as share premium.

w) Employee benefits

Gratuity

In accordance with applicable Indian laws, the Group provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan") covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment.

Liabilities with regard to the gratuity plan are determined by actuarial valuation, performed by an independent actuary, at each Statement of financial position date using the projected unit credit method.

The Group recognises the net obligation of a defined benefit plan in its statement of financial position as an asset or liability, respectively in accordance with IAS 19, Employee benefits. The discount rate is based on the Government securities yield. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to profit or loss in the statement of comprehensive income in the period in which they arise.

x) Business combinations

Business combinations arising from transfers of interests in entities that are under the control of the shareholder that controls the Group are accounted for as if the acquisition had occurred at the beginning of the earliest comparative period presented or, if later, at the date that common control was established using pooling of interest method. The assets and liabilities acquired 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. Any excess consideration paid is directly recognised in equity.

y) Segment Reporting

The Group has adopted the "management approach" in identifying the operating segments as outlined in IFRS 8 - Operating segments. Segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Board of Directors being the chief operating decision maker evaluate the Group's performance and allocates resources based on an analysis of various performance indicators at operating segment level. During the current year 2021 the Group has deconsolidated solar entities and are classified as associates (note 7(b)). Accordingly, during FY 21 there is only one operating segment thermal power. The solar power business is classified as held for sale. There are no geographical segments as all revenues arise from India. All the non current assets are located in India.

6. Significant accounting judgements, estimates and assumptions

The preparation of financial statements in conformity with IFRS requires management to make certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

The principal accounting policies adopted by the Group in the consolidated financial statements are as set out above. The application of a number of these policies requires the Group to use a variety of estimation techniques and apply judgment to best reflect the substance of underlying transactions.

The Group has determined that a number of its accounting policies can be considered significant, in terms of the management judgment that has been required to determine the various assumptions underpinning their application in the consolidated financial statements presented which, under different conditions, could lead to material differences in these statements. The actual results may differ from the judgments, estimates and assumptions made by the management and will seldom equal the estimated results.

a. Judgements

The following are significant management judgments in applying the accounting policies of the Group that have the most significant effect on the financial statements.

Assessing control of subsidiaries, associates, joint ventures

During FY21, the Group has reclassified the 31% equity interest in the solar entities from Subsidiaries to Associates due to loss of control. The interest in the solar entities (Avanti Solar Energy Private Limited, Mayfair Renewable Energy (I) Private Limited, Avanti Renewable Energy Private Limited and Brics Renewable Energy Private Limited) are disclosed as assets held for sale.

Non-current assets held for sale and discontinued operations

The Group exercises judgement in whether assets are held for sale. After evaluation of all options, the Company decided that the most efficient way to maximise shareholders' value from solar operations is to dispose of the solar companies and it initiated the process of disposition of the solar companies. Under IFRS 5, such a transaction meets the 'Asset held for sale' when the transaction is considered sufficiently probable and other relevant criteria are met. Management consider that all the conditions under IFRS 5 for classification of the solar business as held for sale have been met as at 31 March 2021 and expects the interest in the solar companies to be sold within the next 12 months.

The investment in the joint venture Padma Shipping Limited and associated advance has been presented as an asset held for sale following the process of sale of the second vessel as mentioned in note 7(a).

Recoverability of deferred tax assets:

The recognition of deferred tax assets requires assessment of future taxable profit (see note 5(h)).

b. Estimates and uncertainties

The key assumptions concerning the future and other key sources of estimation uncertainty at the Statement of financial position date, that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next financial year are discussed below:

i. Estimation of fair value of financial assets and financial liabilities: While preparing the financial statements the Group makes estimates and assumptions that affect the reported amount of financial assets and financial liabilities.

Trade Receivables

The Group ascertains the expected credit losses (ECL) for all receivables and adequate impairment provision are made. At the end of each reporting period a review of the allowance for impairment of trade receivables is performed. Trade receivables do not contain a significant financing element, and therefore expected credit losses are measured using the simplified approach permitted by IFRS 9, which requires lifetime expected credit losses to be recognised on initial recognition. A provision matrix is utilised to estimate the lifetime expected credit losses based on the age, status and risk of each class of receivable, which is periodically updated to include changes to both forward-looking and historical inputs.

Assets held for sale - Financial assets measured at FVPL

Valuation of Investment in joint venture Padma Shipping is based on estimates and subject to uncertainties (Note 7(a)).

Financial assets measured at FVPL

Management applies valuation techniques to determine the fair value of financial assets measured at FVPL where active market quotes are not available. This requires management to develop estimates and assumptions based on market inputs, using observable data that market participants would use in pricing the asset. Where such data is not observable, management uses its best estimate. Estimated fair values of the asset may vary from the actual prices that would be achieved in an arm's length transaction at the reporting date.

ii. Impairment tests: In assessing impairment, management estimates the recoverable amount of each asset or cash-generating units based on expected future cash flows and use an interest rate for discounting them. Estimation uncertainty relates to assumptions about future operating results including fuel prices, foreign currency exchange rates etc. and the determination of a suitable discount rate;

iii. Useful life of depreciable assets: Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets.

7. Profit/(Loss) from discontinued operations

Non-current assets held for sale and Profit/(Loss) from discontinued operations consists of:

		Assets held for sale		Liabilities classified as held for sale		Profit/(Loss) from discontinued operations
		At 31 March 2021	At 31 March 2020	At 31 March 2021	At 31 March 2020	For FY 21	For FY 20
i	Impairment of investments in joint venture	-	-	-	-	-	(918,432)
ii	Interest in Solar entities Note (7(b))	16,425,368	46,356,680	-	32,866,783	-	(293,942)
iii	Share of Profit from Solar entities Note 7(b)	-	-	-	-	117,710	-
iv	Gain on deconsolidation of Solar entities	-	-	-	-	881,688	-
v	Impairment of deposits pledged for lenders of BVP	-	-	-	-	-	(933,901)
	Total	16,425,368	46,356,680	-	32,866,783	999,398	(2,146,275)

a) Investment in joint venture Padma Shipping Limited - classified as held for sale

In 2014 the Company entered into a Joint Venture agreement with Noble Chartering Ltd ("Noble"), to secure competitive long term rates for international freight for its imported coal requirements. Under the Arrangement, the company and Noble agreed to jointly purchase and operate two 64,000 MT cargo vessels through a Joint venture company Padma Shipping Ltd, Hong Kong ('Padma').

OPG has invested approximately £3,484,178 in equity and £1,727,418 to date as advance and accordingly the joint venture has been reported using equity method as per the requirements of IFRS 11. During FY2020 the Company recognised an impairment provision of £918,432 resulting in impairment of entire investment of £5,211,596 in joint venture (note 16) on account of the impending dissolution of the JV.

b) Assets held for sale and discontinued operations of solar subsidiaries

During FY19, the results of the operations of solar entities Avanti Solar Energy Private Limited, Mayfair Renewable Energy (I) Private Limited, Avanti Renewable Energy Private Limited and Brics Renewable Energy Private Limited were classified as Assets held for sale. After evaluation of all the options, the Company decided that the most efficient way to maximise shareholders' value from the solar operations is to dispose of the solar entities and the process of disposition of the solar entities was initiated. The process of sale could not be implemented during FY21 due to pandemic Covid-19 and expectation of comparatively better valuation for sale. However, the Management expects the interest in the solar entities to be sold within the next 12 months and continues to locate a buyer.

During FY19, the Company obtained a right to exercise an option to buy additional 30% equity interest in solar companies. Effective from FY20 this right was assigned to a third party and from FY21 the remaining related obligations and the results of the operations of solar companies Aavanti Solar Energy Private Limited, Mayfair Renewable Energy (I) Private Limited, Aavanti Renewable Energy Private Limited and Brics Renewable Energy Private Limited are not consolidated in Group's consolidated financial statements due to loss of control. The Group continues owning a 31% equity interest in the solar companies.

Non-current Assets held-for-sale and discontinued operations
(a) Assets of disposal group classified as held-for-sale	As at 31 March 2021	As at 31 March 2020
Property, plant and equipment	-	42,098,498
Trade and other receivables	-	3,489,633
Other short-term assets	-	256,209
Restricted cash	-	487,795
Cash and cash equivalents	-	24,545
Investment in Joint venture classified as held for sale	16,425,368	-
Total	16,425,368	46,356,680

(b) Liabilities of disposal group classified as held-for-sale	As at 31 March 2021	As at 31 March 2020
Non Current liabilities
Borrowings	-	28,262,288
Trade and other payables	-	-
Deferred tax liability	-	1,014,031
Current liabilities
Trade and other payables	-	901,474
Other liabilities	-	2,688,990
Total	-	32,866,783

(c) Analysis of the results of discontinued operations is as follows:	For FY 21	For FY 20
Revenue	-	5,884,401
Operating profit before impairments	-	2,160,974
Finance income	-	92,096
Finance cost	-	(3,540,239)
Current Tax	-	-
Deferred tax	-	993,226
Share of Profit from Solar entities	117,710	-
Gain on deconsolidation of Solar entities	881,688	-
Profit/(Loss) from Solar operations	999,398	(293,942)

8 Segment Reporting

The Group has adopted the "management approach" in identifying the operating segments as outlined in IFRS 8 - Operating segments. Segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Board of Directors being the chief operating decision maker evaluate the Group's performance and allocates resources based on an analysis of various performance indicators at operating segment level. During the current year 2021 the Group has deconsolidated the solar entities which are classified as associates (note 7(b)). Accordingly, during FY 21 there is only one operating segment thermal power. The solar power business is classified as held for sale. There are no geographical segments as all revenues arise from India. All the non current assets are located in India.

Revenue on account of sale of power to one customer exceeding 10% of total sales revenue amounts to £28,720,575 (2020: £27,152,241).

Segmental information disclosure
	Continuing operations		Discontinued operations
	Thermal		Solar
Segment Revenue	FY21	FY20	FY21	FY20
Sales	93,823,933	154,040,283	-	5,884,401
Total	93,823,933	154,040,283	-	5,884,401
Other operating income	9,420,712	-	-	-
Depreciation, impairment	(5,705,538)	(6,293,034)	-	(3,516,527)
Profit from operation	27,495,324	24,036,945	-	2,160,974
Finance income	868,439	1,962,692	-	92,096
Finance cost	(6,803,137)	(11,495,136)	-	(3,540,239)
Tax expenses	(8,447,699)	(4,321,124)	-	993,226
Gain on deconsolidation of Solar entities	-	-	881,688	-
Share of Profit in Solar entities	-	-	117,710	-
Profit / (loss) for the year	13,112,927	10,183,377	999,398	(293,942)
Assets	239,076,536	249,981,014	16,425,368	49,579,232
Liabilities	93,934,834	104,967,078	-	35,267,786

9 Costs of inventories and employee benefit expenses included in the consolidated statements of comprehensive income

a)	Cost of fuel
		31 March 2021	31 March 2020
	Included in cost of revenue:
	Cost of fuel consumed	54,095,390	83,133,530
	Other direct costs	2,797,675	6,926,722
	Total	56,893,065	90,060,252
b)	Employee benefit expenses forming part of general and administrative expenses are as follows:
		31 March 2021	31 March 2020
	Salaries and wages	2,139,303	2,756,438
	Employee benefit costs *	228,112	760,914
	Long Term Incentive Plan (Note 21)	535,247	835,822
	Total	2,902,662	4,353,174

* includes £31,885 (2020: 21,860) being expenses towards gratuity which is a defined benefit plan (Note 5(w))

c)	Auditor's remuneration for audit services amounting to £60,000 (2020: £65,000) is included in general and administrative expenses.
d)	Foreign exchange movements (realised and unrealised) included in the Finance costs is as follows:
		31 March 2021	31 March 2020
	Foreign exchange realised - loss/(gain)	213,524	(420,842)
	Foreign exchange unrealised- loss/(gain)	46,931	1,568,333
	Total	260,455	1,147,491

10 Other operating income and expenses
a) Other operating income
	31 March 2021	31 March 2020
Contractual claims payments	9,420,712	-
Total	9,420,712	-
Other operating income represents contractual claims payments from company's customers under the power purchase agreements which were accumulated over several periods.
Other income
	31 March 2021	31 March 2020
Sale of coal	616,708	462,718
Sale of fly ash	16,271	26,611
Power trading commission and other services	147,166	161,053
Others	1,141,401	17,655
Total	1,921,546	668,037

11 Finance costs
Finance costs are comprised of:
	31 March 2021	31 March 2020
Interest expenses on borrowings	5,848,895	9,289,625
Net foreign exchange loss (Note 9)	260,455	1,147,491
Other finance costs	693,787	1,058,020
Total	6,803,137	11,495,136
Other finance costs include charges and cost related to LC's for import of coal and other charges levied by banks on transactions

12 Finance income
Finance income is comprised of:
	31 March 2021	31 March 2020
Interest income on bank deposits and advances	401,194	1,943,132
Profit on disposal of financial instruments*	467,245	19,560
Total	868,439	1,962,692
*Financial instruments represent the mutual funds held during the year.

13 Tax expense

Tax Reconciliation

Reconciliation between tax expense and the product of accounting profit multiplied by India's domestic tax rate for the years ended 31 March 2021 and 2020 is as follows:

	31 March 2021	31 March 2020
Accounting profit before taxes	21,560,626	14,504,501
Enacted tax rates	34.94%	34.94%
Tax expense / (benefit) on profit / (loss) at enacted tax rate	7,534,145	5,068,453
Exempt Income due to tax holiday	(161,808)	(22,896)
Foreign tax rate differential	487,920	(327,343)
Unused tax losses brought forward and carried forward	1,216,052	(993,226)
Non-taxable items	(216,590)		-
MAT credit entitlement	(412,019)		(397,088)
Actual tax for the period	8,447,699		3,327,899

	31 March 2021	31 March 2020
Current tax	412,513	788,430
Deferred tax	8,035,186	3,532,694
Total tax expenses on income from continued operations	8,447,699	4,321,124
Add: tax on income from discontinuing operations	-	(993,226)
Tax reported in the statement of comprehensive income	8,447,699	3,327,899

The Company is subject to Isle of Man corporate tax at the standard rate of zero percent. As such, the Company's tax liability is zero. Additionally, the Isle of Man does not levy tax on capital gains. However, considering that the Group's operations are primarily based in India, the effective tax rate of the Group has been computed based on the current tax rates prevailing in India. Further, a substantial portion of the profits of the Group's India operations are exempt from Indian income taxes being profits attributable to generation of power in India. Under the tax holiday the taxpayer can utilize an exemption from income taxes for a period of any ten consecutive years out of a total of fifteen consecutive years from the date of commencement of the operations. However, the entities in India are still liable for Minimum Alternate Tax (MAT) which is calculated on the book profits of the respective entities currently at a rate of 17.47% (31 March 2020: 17.47%).

The Group has carried forward credit in respect of MAT tax liability paid to the extent it is probable that future taxable profit will be available against which such tax credit can be utilised.

Deferred income tax for the Group at 31 March 2021 and 2020 relates to the following:

	31 March 2021	31 March 2020
Deferred income tax assets
Unused tax losses brought forward and carried forward	-	1,216,052
MAT credit entitlement	12,374,534	11,962,515
	12,374,534	13,178,567
Deferred income tax liabilities
Property, plant and equipment	25,368,905	18,902,358
	25,368,905	18,902,358
Deferred income tax liabilities, net	12,994,371	5,723,791

Movement in temporary differences during the year

Particulars	As at 01 April 2020	Deferred tax Asset/(Liability) for the year	Classified as (Asset) / Liability held for sale	Translation adjustment	As at 31 Mar 2021
Property, plant and equipment	(18,902,358)	-	(6,466,547)	-	(25,368,905)
Unused tax losses brought forward and carried forward	1,216,052	-	(1,216,052)	-	-
MAT credit entitlement	11,962,515	412,019	-	-	12,374,534
Deferred income tax (liabilities) / assets, net	(5,723,791)	412,019	(7,682,599)	-	(12,994,371)

Particulars	As at 01 April 2019	Deferred tax Asset/(Liability) for the year	Classified as (Asset) / (Liability) held for sale	Translation adjustment	As at 31 Mar 2020
Property, plant and equipment	(15,161,594)	(2,936,557)	(993,226)	189,018	(18,902,358)
Unused tax losses brought forward and carried forward	1,216,052	-	-	-	1,216,052
MAT credit entitlement	11,565,427	397,088	-	-	11,962,515
Deferred income tax (liabilities) / assets, net	(2,380,115)	(2,539,468)	(993,226)	189,018	(5,723,791)

In assessing the recoverability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.

Shareholders resident outside the Isle of Man will not suffer any income tax in the Isle of Man on any income distributions to them. Further, dividends are not taxable in India in the hands of the recipient up to 31 March 2021. However, the Group will be subject to a "dividend distribution tax" currently at the rate of 15% to be grossed up (plus applicable surcharge and education cess) on the total amount distributed as dividend.

There is no unrecognised deferred tax assets and liabilities. As at 31 March 2021 and 2020, there was no recognised deferred tax liability for taxes that would be payable on the unremitted earnings of certain of the Group's subsidiaries, as the Group has determined that undistributed profits of its subsidiaries will not be distributed in the foreseeable future.

14 Intangible assets	Acquired software licences
Cost
At 31 March 2019	852,624
Additions	-
Exchange adjustments	(25,559)
At 31 March 2020	827,065
At 31 March 2020	827,065
Additions	-
Exchange adjustments	(63,470)
At 31 March 2021	763,595
Accumulated depreciation and impairment
At 31 March 2019	829,021
Charge for the year	14,327
Exchange adjustments	(25,329)
At 31 March 2020	818,020
At 31 March 2020	818,020
Charge for the year	6,209
Exchange adjustments	(63,028)
At 31 March 2021	761,201
Net book value
At 31 March 2021	2,394
At 31 March 2020	9,045

15 Property, plant and equipment

The property, plant and equipment comprises of:

	Land & Buildings	Power stations	Other plant & equipment	Vehicles	Solar assets	Asset under construction	Total
Cost
At 1 April 2019	5,007,901	222,961,054	1,773,269	2,417,413	-	4,285,864	236,445,501
Additions	-	294,954	165,831	10,958	-	82,815	554,559
Transfer on capitalisation	3,903,256	56,168	-	-	-	(3,959,424)	-
Exchange adjustments	(145,667)	(6,689,809)	(52,848)	(72,290)	-	(128,479)	(7,089,093)
At 31 March 2020	8,765,490	216,622,367	1,886,252	2,356,081	-	280,776	229,910,967

At 1st April 2020	8,765,490	216,622,367	1,886,252	2,356,081	-	280,776	229,910,967
Additions	271,158	318,038	24,375	134,659	-	36,206	784,436
Transfers on capitalisation	13,598	159,120	-	-	-	(172,718)	-
Sale/disposals	-	-	-	(1,561,762)	-	-	(1,561,762)
Exchange adjustments	(661,265)	(16,639,299)	(143,908)	(180,354)	-	(21,547)	(17,646,373)
At 31 March 2021	8,388,982	200,460,226	1,766,719	748,624	-	122,717	211,487,267

Accumulated depreciation and impairment
At 1 April 2019	45,030	30,171,648	634,011	1,491,921	-	-	32,342,610
Charge for the year	12,981	5,603,791	272,110	389,825	-	-	6,278,707
Exchange adjustments	(2,410)	(1,091,777)	(28,050)	(57,509)	-	-	(1,179,746)
At 31 March 2020	55,601	34,683,662	878,072	1,824,237	-	-	37,441,572

At 1 April 2020	55,601	34,683,662	878,072	1,824,237	-	-	37,441,572
Charge for the year	12,081	5,230,238	262,333	194,677	-	-	5,699,329
Sale/disposals	-	-	-	(1,263,537)	-	-	(1,263,537)
Exchange adjustments	(6,363)	(2,874,452)	(77,955)	(147,367)	-	-	(3,106,137)
At 31 March 2021	61,319	37,039,448	1,062,450	608,010	-	-	38,771,227

Net book value
At 31 March 2021	8,327,663	163,420,778	704,269	140,614	-	122,717	172,716,040
At 31 March 2020	8,709,889	181,938,705	1,008,180	531,845	-	280,776	192,469,395

The net book value of land and buildings block comprises of:
	31 March 2021	31 March 2020
Freehold land	7,917,345	8,134,867
Buildings	410,318	405,387
	8,327,663	8,540,254

Property, plant and equipment with a carrying amount of £169,111,804 (2020: £187,757,094) is subject to security restrictions (refer note 22).

16 Other Assets

	31 March 2021	31 March 2020
A. Short-term
Capital advances	124,601	114,084
Financial instruments measured at fair value through P&L	13,253,663	741,425
Advances and other receivables	4,427,290	5,461,226
Total	17,805,554	6,316,735
B. Long-term
Lease deposits	-	492,973
Bank deposits	57,713
Other advances	12,140	16,655
Total	69,853	509,628

The financial instruments of £13,253,663 represent investments in mutual funds and their fair value is determined by reference to published data.

17 Trade and other receivables

	31 March 2021	31 March 2020
Current
Trade receivables	14,829,989	26,901,986

	14,829,989	26,901,986

The Group's trade receivables are classified at amortised cost unless stated otherwise and are measured after allowances for future expected credit losses, see "Credit risk analysis" in note 28 "Financial risk management objectives and policies" for more information on credit risk. The carrying amounts of trade and other receivables, which are measured at amortised cost, approximate their fair value and are predominantly non-interest bearing.

18 Inventories

	31 March 2021	31 March 2020
Coal and fuel	11,228,377	10,505,138
Stores and spares	958,267	974,961
Total	12,186,644	11,480,099

The entire amount of above inventories has been pledged as security for borrowings (refer note 22)

19 Cash and cash equivalents and Restricted cash

a. Cash and short term deposits comprise of the following:

	31 March 2021	31 March 2020
Investment in Mutual funds	1,815,629	-
Cash at banks and on hand	7,105,324	3,438,830
Total	8,920,952	3,438,830

Short-term deposits are placed for varying periods, depending on the immediate cash requirements of the Group. They are recoverable on demand.

b. Restricted cash

Current restricted cash represents deposits maturing between three to twelve months amounting to £3,219,356 (2020: £7,497,967) which have been pledged by the Group in order to secure borrowing limits with the banks.

Non-current restricted represents investments in mutual funds maturing after twelve months amounting to £8,194,412 (2020: £26,645). Investments of £8,182,445 (2020: nil) are allocated to debenture redemption fund earmarked towards redemption of non-convertible debentures scheduled during FY2024 of £19,840,089

20 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 issued nil (2020:12,823,311) shares during the year with respect to scrip dividend at par value of £ nil (2020: £0.000147) per share amounting to £ nil (2020: £1,885). During FY20 the difference between fair value of shares issued above par value of £2,325,567 with respect to scrip dividend was credited to share premium.

As at 31 March 2021, the Company has an authorised and issued share capital of 400,733,511 (2020: 400,733,511) equity shares at par value of £ 0.000147 (2020: £ 0.000147) per share amounting to £58,909 (2020: £58,909) in total.

Reserves

Share premium represents the amount received by the Group over and above the par value of shares issued. Any transaction costs associated with the issuing of shares are deducted from share 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 financial assets measured at fair value through other comprehensive income.

Retained earnings include all current and prior period results as disclosed in the consolidated statement of comprehensive income less dividend distribution.

21 Share based payments

Long Term Incentive Plan

In April 2019, the Board of Directors approved the introduction of Long Term Incentive Plan ("LTIP"). The key terms of the LTIP are:

The number of performance-related awards is 14 million ordinary shares (the "LTIP Shares") (representing approximately 3.6 per cent of the Company's issued share capital). In addition to three executive directors, additional members of the senior management team will be included within the LTIP. The grant date is 24 April 2019.

The LTIP Shares were awarded to certain members of the senior management team as Nominal Cost Shares and will vest in three tranches subject to continued service with Group until vesting and meeting the following share price performance targets, plant load factor ("PLF") and term loan repayments of the Chennai thermal plant.

- 20% of the LTIP Shares shall vest upon meeting the target share price of 25.16p before the first anniversary for the first tranche, i.e. 24 April 2020, achievement of PLF during the period April 2019 to March 2020 of at least 70% at the Chennai thermal plant and repayment of all scheduled term loans;

- 40% of the LTIP Shares shall vest upon meeting the target share price of 30.07p before the second anniversary for the second tranche, i.e. 24 April 2021, achievement of PLF during the period April 2020 to March 2021 of at least 70% at the Chennai thermal plant and repayment of all scheduled term loans;

- 40% of the LTIP Shares shall vest upon meeting the target share price of 35.00p before the third anniversary for the third tranche, i.e. 24 April 2022, achievement of PLF of at least 70% at the Chennai thermal plant during the period April 2021 to March 2022 and repayment of all scheduled term loans.

The nominal cost of performance share, i.e. upon the exercise of awards, individuals will be required to pay up 0.0147p per share to exercise their awards

The share price performance metric will be deemed achieved if the average share price over a fifteen day period exceeds the applicable target price. In the event that the share price or other performance targets do not meet the applicable target, the number of vesting shares would be reduced pro-rata, for that particular year. However, no LTIP Shares will vest if actual performance is less than 80 per cent of any of the performance targets in any particular year. The terms of the LTIP provide that the Company may elect to pay a cash award of an equivalent value of the vesting LTIP Shares.

In April 2020, and upon meeting relevant performance targets, 2,190,519 LTIP shares vested (80% of the 1st tranche). These shares will be issued later this year.

None of the LTIP Shares, once vested, can be sold until the third anniversary of the award, unless required to meet personal taxation obligations in relation to the LTIP award.

For LTIP Shares awards, £535,247 (FY20: 835,822) has been recognised in General and administrative expenses.

Grant date	24-Apr-19	24-Apr-19	24-Apr-19
Vesting date	24-Apr-20	24-Apr-21	24-Apr-22
Method of Settlement	Equity/ Cash	Equity/ Cash	Equity/ Cash
Vesting of shares (%)	20%	40%	40%
Number of LTIP Shares granted	2,800,000	5,600,000	5,600,000
Exercise Price (pence per share)	0.0147	0.0147	0.0147
Fair Value of LTIP Shares granted (pence per share)	0.1075	0.1217	0.1045
Expected Volatility (%)	68.00%	64.18%	55.97%

22 Borrowings

The borrowings comprise of the following:
	Interest rate (range %)	Final maturity	31 March 2021	31 March 2020
Borrowings at amortised cost	10.35-11.40	June 2024	26,770,564	56,827,685
Non-Convertible Debentures at amortised cost	9.85		19,840,089	-
Total			46,610,653	56,827,685

The term loans of £20.3m, non-convertible debentures of £19.8m and working capital loans of £6.5m 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 term loans and working capital loans are personally guaranteed by a director.

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. As of 31 March 2021, the Group has met all the relevant covenants. Further, the Group raised approximately GBP 19.8 million (₹2000 million) during June 2020 through non-convertible debentures (NCDs) issue with a three years term and coupon rate of 9.85%. NCD's proceeds was used to repay the FY21 and FY22 (i.e. to March 2022) principal term loans obligations. This will substantially release the cash flow burden for next two financial years on account of loan repayment obligations (Note 5(a)).

The fair value of borrowings at 31 March 2021 was £46,610,653 (2020: £56,827,685). 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 2021	31 March 2020
Current liabilities
Amounts falling due within one year	4,510,358	23,746,229
Non-current liabilities
Amounts falling due after 1 year but not more than 5 years	42,100,295	33,081,456
Total	46,610,653	56,827,685

23 Trade and other payables

	31 March 2021	31 March 2020
Current
Trade payables	32,368,058	41,455,004
Creditors for capital goods	128,777	208,985
Total	32,496,835	41,663,989
Non-current
Other payables	607,702	169,373
Total	607,702	169,373

Trade payables include credit availed from banks under letters of credit for payments in USD to suppliers for coal purchased by the Group. Other trade payables are normally settled on 45 days terms credit. The arrangements are interest bearing and are payable within one year. With the exception of certain other trade payables, all amounts are short term. 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.

24 Related party transactions

Key Management Personnel:
Name of the party	Nature of relationship
Arvind Gupta	Chairman
Avantika Gupta	Chief Operating Officer & Director
Dmitri Tsvetkov	Chief Financial Officer & Director
Jeremy Warner Allen	Deputy Chairman
Mike Grasby (from February 2021)	Director
Jeremy Beeton (resigned in March 2020)	Director
N Kumar (from November 2019)	Director

Related parties with whom the Group had transactions during the period
Name of the party	Nature of relationship
Padma Shipping Limited	The company has joint control of the entity
Avanti Solar Energy Private Limited	Associates
Mayfair Renewable Energy (I) Private Limited	Associates
Avanti Renewable Energy Private Limited	Associates
Brics Renewable Energy Private Limited	Associates
Samriddhi Bubna	Relative of Key Management Personnel

Summary of transactions with related parties

Name of the party	31 March 2021	31 March 2020
Remuneration to Samriddhi Bubna (from June 2020)	25,847	-
Sale of solar modules:
a) Avanti Solar Energy Private Limited	198,299	-
b) Mayfair Renewable Energy (I) Private Limited	79,496	-

During the year Samriddhi Solar Power LLP and OPG Surya Vidyut LLP have been deconsolidated consequent to the Group withdrawing from the LLP.

Summary of balance with related parties
Name of the party	Nature of balance	31 March 2021	31 March 2020
Padma Shipping Limited	Investment	3,448,882	3,448,882
Padma Shipping Limited	Advances	1,727,418	1,727,418
Padma Shipping Limited	Impairment provision	(5,176,300)	(5,176,300)
Ravi Gupta	Land Lease Deposit	-	492,973
Avanti Solar Energy Private Limited	Investment	4,766,864	-
Avanti Solar Energy Private Limited	Trade payable	(67,391)	-
Avanti Solar Energy Private Limited	Advance	6,022	-
Mayfair Renewable Energy (I)Private Limited	Investment	5,352,890	-
Mayfair Renewable Energy (I) Private Limited	Trade payable	(51,294)	-
Mayfair Renewable Energy (I) Private Limited	Advance	7,242	-
Avanti Renewable Energy Private Limited	Investment	5,895,541	-
Avanti Renewable Energy Private Limited	Trade payable	(147,583)	-
Avanti Renewable Energy Private Limited	Advance	9,047	-
Brics Renewable Energy Private Limited	Investment	410,073	-
Brics Renewable Energy Private Limited	Advance	298	-

Outstanding balances at the year-end are unsecured. Related party transaction are on an arms length basis. There have been no guarantees provided or received for any related party receivables or payables except for corporate guarantees issued to lenders of its solar entities classified as Asset Held for Sale (loans outstanding £23,300,131 (2020: £28,261,524)) and corporate guarantee to a director for his personal guarantees with respect to the Group's and associate solar entities' loans. For the year ended 31 March 2021, the Group has made impairment provision for investments in joint venture £Nil (2020: £918,432) (Note 7(a)). 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.

A director personally guaranteed loans of an associate solar entity (loan outstanding £7,412,554 (2020: £9,372,074)) which is classified as Asset Held for Sale. Group's loans of £25,368,634 (2020: £56,817,858) are personally guaranteed by a director.

25 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 2021 or 2020).

The Company has issued LTIP over ordinary shares which could potentially dilute basic earnings per share in the future.

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 2021	31 March 2020
Weighted average number of shares used in basic earnings per share	400,733,511	390,923,328
Shares deemed to be issued for no consideration in respect of share based payments	2,190,519	2,190,519
Weighted average number of shares used in diluted earnings per share	402,924,030	393,113,847

26 Directors remuneration Name of directors	31 March 2021	31 March 2020
Arvind Gupta	-	500,000
Avantika Gupta	60,000	120,000
Dmitri Tsvetkov	150,000	240,000
Jeremy Warner Allen	25,000	50,000
N Kumar (from November 2019)	22,500	15,000
Mike Grasby (till November 2019 in FY20 and from February 2021 in FY21)	2,562	33,750
Jeremy Beeton (resigned in March 2020)	-	43,270
Total	260,062	1,002,020

As part of the COVID-19 response, the Company has implemented various cost reduction and efficiency improvement measures to conserve cash and improve liquidity, including a voluntary 100 per cent salary reduction for the Chairman and voluntary reductions up to 50 per cent in compensation for the Executive and Non-Executive Directors for FY21.

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.

27 Commitments and contingencies

Operating lease commitments

The Group leases office premises under operating leases. The leases typically run for a period up to 5 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 2021	31 March 2020
Not later than one year	-	46,095
Later than one year and not later than five years	-	64,254
Later than five years	-	-
Total	-	110,349

Recognition of a right of use asset and a lease liability is not material and instead charge of £ Nil (2020: £55,292) has been recognised as an expense for leases.

Contingent liabilities

Disputed income net tax demand £816,358 (2020: £1,021,210).

Future cash flows in respect of the above matters are determinable only on receipt of judgements / decisions pending at various forums / authorities.

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 2021: £20,167,583 (2020: £30,912,751) and Bank Guarantee (BG) as at 31 March 2021: £2,575,878 (2020: £3,167,066). LC are supporting accounts payables already recognised in the statement of financial position. There have been no guarantees provided or received for any related party receivables or payables except for corporate guarantees issued to lenders of its solar entities classified as Asset Held for Sale of £23,300,131(2020: £28,261,524). Working capital facilities limits, LCs and BGs are personally guaranteed by a director. BG are treated as contingent liabilities until such time it becomes probable that the Company will be required to make a payment under the guarantee. The Company provided a corporate guarantee to a director for his personal guarantees with respect to the Group's and associate solar entities' loans.

28 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 financial assets measured at FVPL 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, financial assets measured at FVPL.

The sensitivity analyses in the following sections relate to the position as at 31 March 2021 and 31 March 2020

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 2021, 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 2021 and 31 March 2020, 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 2021 would decrease or increase by £466,107 (2020: £568,277).

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 31 March 2021		As at 31 March 2020
Currency	Financial assets	Financial liabilities	Financial assets	Financial liabilities
United States Dollar (USD)	60,158	27,733,983	4,275,436	30,575,559

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 31 March 2021

As at 31 March 2020

Currency

Closing Rate (INR/USD)

Effect of 10% strengthening in USD against INR - Translated to GBP

Closing Rate (INR/USD)

Effect of 10%

strengthening in USD

against INR - Translated

to GBP

United States Dollar (USD)

73.37

2,012,662

75.10

2,122,208

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. Further, the global economy has been severely impacted by the global pandemic Covid-19 (Note 5(a)).

The maximum exposure for credit risk at the reporting date is the carrying value of each class of financial assets amounting to £33,269,104 (2020: £33,986,093 ) and corporate guarantees issued to lenders of its solar entities classified as Asset Held for Sale of £23,300,131 (2020: £28,261,524).

The Group has exposure to credit risk from accounts receivable balances on sale of electricity. The operating entities of the group has entered into power purchase agreements with distribution companies incorporated by the Indian state government (TANGEDCO) to provide the electricity generated therefore the group is committed to providing power to captive power shareholders and other 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 captive power shareholders and customers to whom the exposure of credit is taken are well established and reputed industries engaged in their respective field of business. It is Group policy to assess the credit risk of new captive power shareholders and other customers before entering contracts and to obtain credit information during the power purchase agreement to highlight potential credit risks. The Group have established a credit policy under which captive power shareholders and customers are analysed for credit worthiness before power purchase agreement is signed. The Group's review includes external ratings, when available, and in some cases bank references. The credit worthiness of captive power shareholders and other customers to which the Group grants credit in the normal course of the business is monitored regularly and incorporates forward looking information and data available. The receivables outstanding at the year end are reviewed till the date of signing the financial statements in terms of recoveries made and ascertain if any credit risk has increased for balance dues. Further, the macro economic factors and specific customer industry status are also reviewed and if required the search and credit worthiness reports, financial statements are evaluated. The credit risk for liquid funds is considered negligible, since the counterparties are reputable banks with high quality external credit ratings.

To measure expected credit losses, trade and other receivables have been grouped together based on shared credit risk characteristics and the days past due. The Group determined that some trade receivables were credit impaired as these were long past their due date and there was an uncertainty about the recovery of such receivables. The expected loss rates are based on an ageing analysis performed on the receivables as well as historical loss rates. The historical loss rates are adjusted to reflect current and forward looking information that would impact the ability of the customer to pay.

Trade and other receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of the debtor to engage in a repayment plan, the debtor is not operating anymore and a failure to make contractual payments for a period of greater than 180 days.

31 March 2021	Within Credit period	Days past due
31 March 2021	Within Credit period	More than 30 days	More than 60 days	More than 180 days	Total
Expected General loss allowance rate	0%	0%	0%	33.02%	-
Gross carrying amount - Trade Receivables -TANGEDCO	1,651,140	1,686,225	2,218,844	15,097,765	20,653,974
Gross carrying amount - Trade Receivables -Others	7,862,837	1,154,009	460,326	5,831,930	15,309,103
General loss allowance¹	-	--	252,404	6,910,677	7,163,081
Specific loss allowance¹		-		13,970,007	13,970,007
Total loss allowance	-	-	252,404	20,880,684	21,133,088

¹ There has been significant increase in loss allowance in FY20 £17 million (FY19: £0.8 million) primarily on account of contractual claim made on customer towards change in law as per Power Purchase Agreement of £6.4 million, tariff discount dispute of £7.5 million and change in credit risk of customer constituting general loss allowance of £3.1 million.

31 March 2020	Within Credit period	Days past due
31 March 2020	Within Credit period	More than 30 days	More than 60 days	More than 180 days	Total
Expected General loss allowance rate	0%	0%	0%	17.21%	-
Gross carrying amount - Trade Receivables -TANGEDCO	2,378,240	3,953,961	5,310,071	18,734,652	30,376,924
Gross carrying amount - Trade Receivables -Others	7,824,720	608,495	889,434	5,310,446	14,633,095
General loss allowance¹				4,138,025	4,138,025
Specific loss allowance¹				13,970,007	13,970,007
Total loss allowance	-	-	-	18,108,033	18,108,033

¹ There has been significant increase in loss allowance in FY20 £17 million (FY19 £0.8 million) primarily on account of contractual claim made on customer towards change in law as per Power Purchase Agreement of £6.4 million, tariff discount dispute of £7.5 million and change in credit risk of customer constituting general loss allowance of £3.1 million.

The closing loss allowances for trade receivables as at 31 March 2021 reconcile to the opening loss allowances as follows:

	31 March 2021	31 March 2020
Opening loss allowance as at 1 April	(18,108,033)	(1,061,553)
Increase in loss allowance recognised in profit or (loss) during the year for new receivables recognised	(3,025,055)	(17,046,480)
Total	(21,133,088)	(18,108,033)

The Group's management believes that all the financial assets, except as mentioned above 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 2021 and 31 March 2020:

As at 31 March 2021
	Current	Non-Current		Total
	Within 12 months	1-5 years	Later than 5 years
Borrowings	4,510,358	22,260,206	-	26,770,564
Non-Convertible Debentures	-	19,840,089	-	19,840,089
Interest on borrowings	6,803,137	7,816,034	-	14,619,171
Trade and other payables	32,495,799	607,702		33,103,501
Liabilities held for sale
Other current liabilities	1,226,309	-		1,226,309
Total	45,035,603	50,524,031	-	95,559,634

As at 31 March 2020
	Current	Non-Current		Total
	Within 12 months	1-5 years	Later than 5 years
Borrowings	23,746,229	33,081,456	-	56,827,685
Interest on borrowings	6,595,187	10,464,236	-	17,059,422
Trade and other payables	41,663,989	169,373	-	41,833,362
Liabilities held for sale	32,866,783	-		32,866,783
Other current liabilities	582,240	-		582,240
Total	105,454,428	43,715,065	-	149,169,492

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 the 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 2021 and 31 March 2020.

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 2021	31 March 2020
Total equity	161,567,070	158,503,833
Less: Cash and cash equivalents	(8,920,952)	(3,438,830)
Capital	152,646,118	155,065,003
Total equity	161,567,070	158,503,833
Add: Borrowings	46,610,653	56,827,685
Overall financing	208,177,723	215,331,518
Capital to overall financing ratio	0.73	0.72

29 Summary of financial assets and liabilities by category and their fair values

	Carrying amount			Fair value
	March 2021	March 2020	March 2021		March 2020
Financial assets
Debt instruments measured at amortised cost
Cash and cash equivalents ¹	8,920,952	3,438,830	8,920,952		3,438,830
Restricted cash ¹	11,413,768	7,524,612	11,413,768		7,524,612
Current trade receivables ¹	14,829,989	26,901,986	14,829,989		26,901,986
Other long-term assets	69,853	509,628	69,853		509,628
Other short-term assets	2,736,262	5,575,310	2,736,262		5,575,310
Financial instruments measured at fair value through profit or loss
Other short term assets (Note (7)(c)) and restricted cash (Note19)	15,069,292	741,425	15,069,292		741,425
	53,040,116	44,691,791	53,040,116		44,691,791

Financial liabilities
Term loans	26,770,564	80,364,930	26,770,564		80,364,930
Non-Convertible Debentures²	19,840,089	-	19,840,089		-
Current trade and other payables ¹	32,495,799	45,474,814	32,495,799		45,474,814
Provision for pledged deposits	-	12,627,381	-		12,627,381
Non-current trade and other payables ²	607,702	14,235,485	607,702		14,235,485
	79,714,154	152,702,610	79,714,154		152,702,610

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. an 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 financial assets measured at FVPL held for trading purposes are derived from quoted market prices in active markets. Fair value of financial assets measured at FVPL of unquoted equity instruments are derived from valuation performed at the year end. Fair Valuation of retained investments in PS and BVP is on basis of the last transaction.

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).

Financial instruments measured at fair value through profit or loss	Level 1	Level 2	Level 3	Total
2021
Quoted securities	15,069,292	-	-	15,069,292
Total	15,059,292	-	-	15,069,292
2020
Quoted securities	700,972	-	40,453	741,425
Total	700,972	-	40,453	741,425

There were no transfers between Level 1 and 2 in the period. Investments in mutual funds are valued at closing net asset value (NAV).

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.

-ends-

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