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Indus Gas Limited (INDI)

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Thursday 29 December, 2016

Indus Gas Limited

Half-year Report

RNS Number : 8745S
Indus Gas Limited
29 December 2016
 



For Immediate Release

 

Indus Gas Limited

("Indus" or "the Company")

 

Interim Results

 

Indus Gas Limited (AIM:INDI.L), an oil & gas exploration and development company with assets in India, is pleased to report its interim results for the six month period ending 30 September 2016.

Consolidated  reported  adjusted  revenues,  operating  profit  and  profit  before tax for  the interim  period  ending  30 September 2016 were US$ 27.39m (US$ 22.63m interim 2015), US$ 22.33m (US$ 16.78m interim 2015) and US$ 22.61m (US$ 14.27m interim 2015) respectively.

The Company has continued to make provision for a notional deferred tax liability of US$ 9.94m (US$ 7.79m interim 2015), in accordance with IFRS requirements.

The integrated Field Development Plan in respect of about 2000 sq. kms. outside of the 176 sq. kms. SGL area is under examination by the Directorate General of Hydrocarbons.  A revised Field Development Plan in respect of the SGL area for the enhancement of production to about 80 mmscfd has recently been submitted to Management Committee for approval.

The Company continues to realise US$5 per mmBtu in respect of its existing gas sales contract.  Discussions for the second contract with GAIL and RRVUNL for the additional gas supplies to the 160 MW turbine at Ramgarh are expected to be finalized in first quarter of 2017. The gas turbine has been procured by RRVUNL and the gas price needs to be mutually agreed. Discussions are also being held for finalising the gas pipeline to evacuate additional gas supply from the Non-SGL area of the block.

Commenting, Peter Cockburn, Chairman of Indus, said:

"Indus has made good progress in the period and continues to see consistent growth in revenue and profits.  The revenues are now expected to increase substantially once the additional gas supplies commence."

 

For further information please contact:

Indus Gas Limited

Peter Cockbur

 

c/o +44 (0)20 76145900

 

Arden Partners plc

Steve Douglas / Patrick Caulfield

 

 

+44 (0)20 7614 5900

Bell Pottinger PR

Lorna Cobbett

 

+44 (0)777 1344 781

 

Indus Gas Limited and its subsidiaries

Unaudited Condensed Consolidated Interim Financial Statements

30 September 2016

 

Unaudited Condensed Consolidated Statement of Financial Position

(All amounts inUS$, unless otherwise stated)


Notes

As at

30 September 2016

As at

30 September 2015

As at

31 March 2016



(Unaudited)

(Unaudited)

(Audited)

ASSETS





Non-current assets





Intangible assets: exploration and evaluation assets

 

7

 

-

 

-

 

                  -

Property, plant and equipment

8

599,706,703

522,510,609

562,441,955

Tax assets


1,962,498

1,483,713

1,735,438

Other assets


885

6,225

            885

Total non-current assets


601,670,086

524,000,547

564,178,278

Current assets





Inventories


4,549,391

4,265,838

4,113,607

Trade receivables


2,973,857

4,304,910

3,266,738

Advance for expenditure to related party

11

12,003,316

-

-

Other current assets


7,204,623

186,186

238,879

Cash and cash equivalents


10,316,555

106,023,268

61,081,916

Total current assets


37,042,742

114,780,202

68,701,140

Total assets


638,717,828

638,780,749

632,879,418






LIABILITIES ANDEQUITY





Shareholders' equity





Share capital


3,619,443

3,619,443

3,619,443

Additional paid-in capital


46,733,689

46,733,689

46,733,689

Currency translation reserve


(9,313,781)

(9,313,781)

(9,313,781)

Merger reserve


19,570,288

19,570,288

19,570,288

Share option reserve


-

324,865

-

Retained earnings


55,923,065

33,702,917

43,256,305

Total  shareholders' equity


116,532,704

94,637,421

103,865,944

 

Unaudited Condensed Consolidated Statement of Financial Position (Contd.)

(All amounts in US $, unless otherwise stated)

 


Notes

As at

30 September 2016

As at

30 September 2015

As at

31 March 2016



(Unaudited)

(Unaudited)

(Audited)






LIABILITIES





Non-current liabilities





Long term debt , excluding current portion

9

262,221,896

305,040,754

283,779,293

Provision for decommissioning


1,218,750

1,353,405

1,132,726

Deferred tax liabilities (net)


50,387,937

34,234,802

40,445,531

Payable to related parties, excluding current portion

11

132,271,106

124,208,932

128,107,609

Deferred revenue


25,563,995

25,563,995

25,563,995

Total non-current liabilities


471,663,684

490,401,888

479,029,154

Current liabilities





Current portion of long term debt

9

44,923,382

20,864,714

37,556,739

Current portion payable to related parties

11

299,187

27,631,649

7,175,123

Accrued expenses and other liabilities


221,785

167,991

175,372

Deferred revenue


5,077,086

5,077,086

5,077,086

Total current liabilities


50,521,440

53,741,440

49,984,320

Total liabilities


522,185,124

544,143,338

529,013,474

Total liabilities and equity


638,717,828

638,780,749

632,879,418

 

 

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

 

 

Unaudited Condensed Consolidated Statement of Comprehensive Income

(All amounts in US $, unless otherwise stated)


  Notes

Six months ended

30 September 2016


Six month ended

30September 2015

 



Unaudited


Unaudited

 






 

Revenue                                 


27,393,016


22,631,938

 

Cost of sales


(4,013,643)


(4,137,020)

 

Administrative expenses


(1,048,144)


(1,717,973)

 






 

Profit from operations


         22,331,229


         16,776,945

 

Foreign exchange gain


277,888


42,505

 

Interest expense


-


(2,553,065)

 

Interest income


50


75

 

Profit before tax


22,609,167


14,266,460

 






 

Income taxes

 -Deferred tax charge


 

(9,942,407)


 

(7,789,480)



 

Profit for the period (attributable 12,666,7606,476,980

 

to the shareholders of the Group)







Total comprehensive income for the period(attributable to the shareholders of the Group)



12,666,760

6,476,980



Earnings per share


 12





Basic



0.07

0.04

0.01

0.01

Diluted



0.07

0.04

0.01

0.01

Par value of each share in GBP



0.02

0.01

0.01

 

 

 

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

 

Unaudited Condensed Consolidated Statement of Changes in Equity

(All amounts in US $, unless otherwise stated)


Common Stock

Additional paid-in capital

Currency translation reserve

Merger reserve

Share option reserve

Retained earnings

Total stockholders' equity

Number   Amount

Balance as at 1 April 2016

 

182,973,924

3,619,443

46,733,689

(9,313,781)

19,570,288

-

43,256,305

103,865,944

Profit for the period

-

-

-

-

-

-

12,666,760

12,666,760

Total comprehensive income  for the period

-

-

-

-

-

-

12,666,760

12,666,760

Balance as at 30 September 2016

 

182,973,924

3,619,443

46,733,689

(9,313,781)

19,570,288

-

55,923,065

116,532,704

 

 

 

Balance as at 1 April 2015

182,973,924

3,619,443

46,733,689

(9,313,781)

19,570,288

324,865

27,225,937

88,160,441

Profit for the period

-

-

-

-

-

-

6,476,980

6,476,980

Total comprehensive income  for the period

-

-

-

-

-

-

6,476,980

6,476,980

Balance as at 30 September 2015

182,973,924

3,619,443

46,733,689

(9,313,781)

19,570,288

324,865

33,702,917

94,637,421

 

 

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim FinancialStatements).


Unaudited Condensed Consolidated Statement of Cash Flows

(All amounts in US $, unless otherwise stated)



Six months ended

30 September 2016

(Unaudited)


Six months ended

30 September 2015

(Unaudited)

 

(A) Cash flow from operating activities





 

 

Profit before tax


22,609,167


14,266,460

 

 

Adjustments





 

Unrealised exchange (gain)/ loss


 

(277,888)


 

3,961

 

Interest income


(50)


(75)

 

Interest expense


-


2,553,065

 

Depreciation


3,747,737


3,866,696

 

 

Changes in operating assets and liabilities





 

 

Inventories


(435,784)


965,577

 

Trade receivables


292,881


1,025,573

 

Trade and other payables


4,405,728


4,233,768

 

Other current and non-current assets


(6,965,744)


120,178

 

Other liabilities


(73,386)


50,482

 

Cash generated from operations


23,302,661


27,085,685

 

 

Income taxes paid


(227,060)


(254,926)

 

 

Net cash generated from operating activities


23,075,601


26,830,759

 

 

(B) Cash flow from investing activities

 





 

Purchase of property, plant and equipment A


(50,680,860)


(32,747,077)

 

Interest received


50


75

 

 

Net cash used in investing activities


(51,680,816)


(32,747,002)

 

 

 





 

 

Unaudited Condensed Consolidated Statement of Cash Flows

(All amounts in US $, unless otherwise stated) (Cont'd) 



Six months ended

30 September 2016

Six months ended

30 September 2015



(Unaudited)

(Unaudited)




 

Proceeds from long term debt from banks


 

-

 

44,400,000

Proceeds from issue of Multicurrency Medium Term Note("MTN")


-

69,548,283

Repayment of long term debt from banks


(14,569,586)

(8,660,000)

Proceeds from related party


218,269

-

Payment of interest


(9,114,813)

(5,629,949)

 

Net cash (used in)/ generated from financing activities


(23,466,160)

99,658,334

 

Net change in cash and cash equivalents


(51,071,374)

93,742,091 





Cash and cash equivalents at the beginning of the period


61,081,916

12,251,533

Effect of exchange rate change on cash and cash equivalents


306,014

29,644

Cash and cash equivalents at the end of the period


10,316,555

106,023,268





Cash and cash equivalents comprises of




balances with banks


10,316,555

106,023,268




 

A The purchase of property, plant and equipment above, includes additions to exploration and evaluation assets amounting to US$ 18,009,154 (previous period: US$ 31,337,095) transferred to development cost, as explained in Note 7.

 

 (The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

 

Notes to Unaudited Condensed Consolidated Interim Financial Statements

 

(All amounts in US $, unless otherwise stated)

1.    INTRODUCTION

Indus Gas Limited ("Indus Gas" or "the Company") was incorporated in the Island of Guernsey on 4 March2008 pursuant to an Act of the Royal Court of the Island of Guernsey. The Company was set up to act as the holding company of iServices Investments Limited. ("iServices") and Newbury Oil Co. Limited ("Newbury").iServices and Newbury are companies incorporated in Mauritius and Cyprus, respectively. iServices was incorporated on 18 June 2003 and Newbury was incorporated on 17 February 2005. The Company was listed on the Alternative Investment Market (AIM) of the London Stock Exchange on 6 June 2008. Indus Gas through its wholly owned subsidiaries iServices and Newbury (hereinafter collectively referred to as "the Group") is engaged in the business of oil and gas exploration, development and production.

 

Focus Energy Limited ("Focus"), an entity incorporated in India, entered into a Production Sharing Contract("PSC") with the Government of India ("GOI") and Oil and Natural Gas Corporation Limited ("ONGC") on30 June 1998 for petroleum exploration and development concession in India known as RJ-ON/06 ("the Block"). Focus is the Operator of the Block. On 13 January 2006, iServices and Newbury entered into an interest sharing agreement with Focus and obtained a 65 per cent and 25 per cent share respectively in the Block. Consequent to this, the Group acquired an aggregate of 90 per cent participating interest in the Block and the balance 10 per cent of participating interest is owned by Focus. The participating interest explained above is subject to any option exercised by ONGC in respect of field (already exercised for SGL field as further explained in Note 4).

 

2.   BASIS OF PREPARATION

The unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2016 and are presented in United States Dollar (US$), which is the functional currency of the parent company and other entities in the Group. They have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required in annual financial statements in accordance with International Financial Reporting Standards as adopted by the European union, and should be read in conjunction with the consolidated financial statements and related notes of the Group for the year ended 31 March 2016.

 

The unaudited condensed consolidated interim financial statements have been prepared on a going concern basis.

 

The accounting policies applied in these unaudited condensed consolidated interim financial statements are consistent with the policies that were applied for the preparation of the consolidated financial statements for the year ended 31 March 2016.

 

These unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2016 and have been approved for issue by the Board of Directors.----

 

 

3.   STANDARDS AND INTERPRETATIONS ISSUED BUT NOT EFFECTIVE AND YET TO BEAPPLIED BY THE GROUP

 

Summarised in the paragraphs below are standards, interpretations or amendments that have been issued prior to the date of approval of these consolidated financial statements and endorsed by EU and will be applicable for transactions in the Group but are not yet effective. These have not been adopted early by the Group and accordingly, have not been considered in the preparation of the consolidated financial statements of the Group.

 

Management anticipates that all of these pronouncements will be adopted by the Group in the first accounting period beginning after the effective date of each of the pronouncements. Information on the new standards, interpretations and amendments that are expected to be relevant to the Group's consolidated financial statements is provided below.

 

-     IFRS 9 Financial Instruments Classification and Measurement

     

In July 2014, the International Accounting Standards Board issued the final version of IFRS 9, Financial Instruments. The standard reduces the complexity of the current rules on financial instruments as mandated in IAS 39. IFRS 9 has fewer classification and measurement categories as compared to IAS 39 and has eliminated the categories of held to maturity, available for sale and loans and receivables. Further it eliminates the rule-based requirement of segregating embedded derivatives and tainting rules pertaining to held to maturity investments. For an investment in an equity instrument which is not held for trading, IFRS 9 permits an irrevocable election, on initial recognition, on an individual share-by-share basis, to present all fair value changes from the investment in other comprehensive income. No amount recognized in other comprehensive income would ever be reclassified to profit or loss. It requires the entity, which chooses to measure a liability at fair value, to present the portion of the fair value change attributable to the entity's own credit risk in other comprehensive income.

     

IFRS 9 replaces the 'incurred loss model' in IAS 39 with an 'expected credit loss' model. The measurement uses a dual measurement approach, under which the loss allowance is measured as either 12 month expected credit losses or lifetime expected credit losses. The standard also introduces new presentation and disclosure requirements.

     

This standard is effective for reporting periods beginning on or after 1 January 2018 with early adoption permitted. The management is currently evaluating the impact that this new standard will have on its consolidated financial statements.

 

-           IFRS 15 Revenue from Contracts with Customers

 

The International Accounting Standards Board (IASB) has published a new standard, IFRS 15 Revenue from Contracts with customers. This standard replaces IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers, and SIC-31 Revenue- Barter Transactions involving advertising services. It sets out the requirements for recognising revenue that apply to contracts with customers, except for those covered by standards on leases, insurance contracts and financial instruments. The new standard establishes a control-based revenue recognition model and provides additional guidance

in many areas not covered in detail under existing IFRSs, including how to account for arrangements with multiple performance obligations, variable pricing, customer refund rights, supplier repurchase options, and other common complexities.

 

This standard is effective for reporting periods beginning on or after 1 January 2017 with early adoption permitted. It applies to new contracts created on or after the effective date and to the existing contracts that are not yet complete as of the effective date.

 

Management is currently evaluating the impact that this new standard will have on its consolidated financial statements.

 

-           IFRS 16Leases

On January 13, 2016, the IASB issued the final version of IFRS 16, Leases. IFRS 16 will replace the existing leases Standard, IAS 17 Leases, and related interpretations. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset isof low value. The Standard also contains enhanced disclosure requirements for lessees. The effective date for adoption of IFRS 16 is annual periods beginning on or after January 1, 2019 (but not yet endorsed in EU), though early adoption is permitted for companies applying IFRS 15 Revenue from Contracts with Customers.

 

Management is currently evaluating the impact that this new standard will have on its consolidated financial statements.

 

4.  JOINTLY CONTROLLED ASSETS

 

As explained above, the Group through its subsidiaries has an interest sharing arrangement with Focus in the block which under IFRS 11: Joint Arrangements, classified as a 'Joint operation'. All rights and obligations in respect of exploration, development and production of oil and gas resources under the 'Interest sharing agreement' are shared between Focus, iServices and Newbury in the ratio of 10 per cent, 65 per cent and 25 per cent respectively.

 

Under the PSC, the GOI, through ONGC had an option to acquire a 30 per cent participating interest in any discovered field, upon such successful discovery of oil or gas reserves, which has been declared as commercially feasible to develop.

 

Subsequent to the declaration of commercial discovery in SGL field on 21 January 2008, ONGC had exercised the option to acquire a 30 per cent participating interest in the discovered fields on 6 June 2008.The exercise of this option would reduce the interest of the existing partners proportionately.

 

On exercise of this option, ONGC is liable to pay its share of 30 per cent of the SGL field development costs and production costs incurred after 21 January 2008 and are entitled to a 30 per cent share in the production of gas subject to recovery of contract costs as explained below. 

 

The allocation of the production from the field to each participant in any year is determined on the basis of the respective proportion of each participant's cumulative unrecovered contract costs as at the end of the previous year or where there are no unrecovered contract cost at the end of previous year on the basis of participating interest of each such participant in the field. For recovery of past contract cost, production from the field is first allocated towards exploration and evaluation cost and thereafter towards development cost.

 

On the basis of above, gas production for the period ended 30 September 2016 is shared between Focus, iServices and Newbury in the ratio of 10 percent, 65 percent and 25 percent respectively.

 

The aggregate amounts relating to jointly controlled assets, liabilities, expenses and commitments related thereto that have been included in the consolidated financial statements are as follows:

 

Particular

Period ended

30 September 2016

(Unaudited)

Period ended

30 September 2015

(Unaudited)

Year ended

31 March 2016

(Audited)

Non-current assets

599,706,703

522,510,609

562,441,955

Current assets

16,552,707

4,265,838

4,113,607

Non-current liabilities

1,218,750

1,353,405

1,132,726

Current liabilities

299,187

27,631,649

7,175,123

Expenses (net of finance income)

4,405,728

4,233,768

10,187,655

Commitments

-

-

-

 





 

 

5.  SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES

 

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

 

In preparing these unaudited condensed interim consolidated financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were consistent with those that applied to the consolidated financial statements as at and for the year ended 31 March 2016.

 

6.  SEGMENT REPORTING

 

Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance. The Company considers that it operates in a single operating segment being the production and sale of gas.

 

7.  INTANGIBLE ASSETS: EXPLORATION AND EVALUATION ASSETS

 

Intangible assets comprise of exploration and evaluation assets. Movement in intangible assets was as under:


Intangible assets: exploration and evaluation assets

Balance as at 31 March 2015

                                 -

Additions A

31,337,095

Transfer to development assets B

(31,337,095)

Balance at  30September  2015

-

Additions A

29,780,558

Transfer to development assets B

(29,780,558)

Balance as at 31 March 2016

                                 -

Additions A

18,009,154

Transfer to development assets B

(18,009,154)

Balance as at  30 September 2016

                                -



 

AThe above includes borrowing costs of US$ 133,303for the period ended 30 September 2016(30 September 2015: US$439,064 and 31 March 2016: US$2,034,442). The weighted average capitalisation rate on funds borrowed generally is 5.89 per cent per annum (30 September 2015: 5.68 per cent per annum and 31 March 2016: 5.84 per cent per annum).

 

BOn 19 November 2013, Focus Energy Limited submitted an integrated declaration of commerciality (DOC) to the Directorate General of Hydrocarbons, ONGC, the Government of India and the Ministry of Petroleum and Natural Gas. Upon submission of DOC, exploration and evaluation cost incurred on SSF and SSG field was transferred to development cost. Focus continues to carry out further appraisal activities in the Block, and exploration and evaluation cost incurred subsequent to 19 November 2013, to the extent considered recoverable as per DOC submitted by Focus, is immediately transferred on incurrence to development assets.

 

 

 

 

8.  PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment comprise of the following:

 

Cost

 

 

Land

Extended well test equipment

Development/ Production assets

Bunk houses

Vehicles

Other assets

Capital work-in-progress

Total

Balance as at 1 April 2016

167,248

3,737,654

580,789,054

5,917,523

4,576,803

1,506,289

1,227,969

597,922,540

Additions

-

133

41,593,793

-

-

7,541

2,092

41,603,559

Balance as at  30 September  2016

167,248

3,737,787

622,382,847

5,917,523

4,576,803

1,513,830

1,230,061

639,526,099

Accumulated depreciation








Balance as at 1 April 2016

-

1,629,759

23,880,916

5,015,047

3,502,013

1,452,850

-  

35,480,585

Depreciation for the period

  - 

126,783

3,747,737

201,751

226,856

35,684

-

4,338,811

Balance as at  30 September 2016

 

    -  

1,756,542

27,628,653

5,216,798

3,728,869

1,488,534

-

39,819,396

Carrying value









As at 30 September 2016

167,248

1,981,245

594,754,194

700,7250

847,934

25,296

1,230,061

599,706,703

 










Cost

 

Land

Extended well test equipment

Development/ Production assets

Bunk Houses

Vehicles

Other assets

Capital work-in-progress

Total

 

Balance as at 1 April 2015

167,248

3,737,654

 491,344,442

5,917,523

4.576,803

1,492,748

1,189,853

508,426,271

 

Additions

-

-

   43,297,264

-

-

8,981

32,400

43,338,645

 

Balance as at  30 September  2015

167,248

3,737,654

  534,641,706

5,917,523

4,576,803

1,501,729

1,222,253

551,764,916 

 










 

Accumulated depreciation








 

Balance as at 1 April 2015

                                  -  

1,369,651

14,506,669

4,516,785

2,878,730

1,359,963

-

24,631,798

 

Depreciation for the period

  - 

134,720

3,866,696

259,762

311,831

49,500

-

4,622,509

 

Balance as at  30 September 2015

    -  

1,504,371

18,373,365

4,776,547

3,190,561

1,409,463

-

29,254,307

 










 

Carrying value









 

As at 30 September 2015

167,248

2,233,283

516,268,341

1,140,9750

1,386,242

92,266

1,222,253

522,510,609

 

 

Cost

 

 

Land

Extended well test equipment

Development/Production assets

Bunk houses

Vehicles

Other assets

Capital work-in-progress

Total

 

Balance as at  1 April 2015

 

167,248

3,737,654

491,344,442

5,917,523

4,576,803

1,492,748

1,189,853

508,426,271

 

Additions                           

-

-

89,444,612

             -

-

13,541

38,116

89,496,269

 

Balance as at 31 March 2016

167,248

3,737,654

580,789,054

5,917,523

4,576,803

1,506,289

1,227,969

597,922,540

 

 

Accumulated Depreciation








 

Balance as at  1 April  2015

-

1,369,651

14,506,669

4,516,785

2,878,730

1,359,963

-

24,631,798

 

Depreciation for the year                                                                           

-

260,108

9,374,247

498,262

623,283

92,887

-

10,848,787

 

Balance as at  31 March 2016

-

1,629,759

23,880,916

5,015,047

3,502,013

1,452,850

-

35,480,585

 










 

Carrying value as at 31 March 2016

167,248

2,107,895

556,908,138

902,476

1,074,790

53,439

1,227,969

562,441,955

 










Borrowing costs capitalised for the period ended 30 September 2016 amounted to US$ 13,657,072(30 September 2015: US$ 9,530,722 and 31 March 2016: US$ 23,304,470).

 

9.  LONG TERM DEBT

 

From Banks


Maturity

30 September 2016

(Unaudited)

30 September 2015

(Unaudited)

31 March 2016

(Audited)

 

Non-current portion of long term debt

2018/2021

189,051,995

235,431,533

210,454,996

Current portion of long term debt from banks


42,301,806

  18,396,553

34,932,179

Total


231,353,801

253,828,086

245,387,175

 

 

Current interest rates are variable and weighted average interest for the period was5.89per cent per annum (30 September 2015: 5.68 per cent per annum and 31 March 2016:5.84 per cent per annum). The fair value of the above variable rate borrowings are considered to approximate their carrying amounts.

 

The term loans are secured by following:-

·     First charge on all project assets of the Group both present and future, to the extent of SGL Field Development and to the extent of capex incurred out of this facility in the rest of RJ-ON/6 field.

·     First charge on the current assets (inclusive of condensate receivable) of the Group to the extent of SGL field.

·     First Charge on the entire current assets of the SGL Field and to the extent of capex incurred out of this facility in the rest of RJON/6 field.

 

From Bond


Maturity

30 September 2016

(Unaudited)

30 September 2015

(Unaudited)

31 March 2016

(Audited)

 

Non-current portion of long term debt

2018

73,169,901

69,609,221

73,324,297

Current portion of long term debt


2,621,576

  2,468,161

2,624,560

Total


75,791,477

      72,077,382

 75,948,857

 

 

During the year ended 31 March 2016, the Group has issued Singapore Dollar ("SGD") 100 million (USD74.18 million) notes under the US$ 300 million MTN programme which carries interest at the rate of 8 percent per annum. These notes are unsecured notes and are fully repayable at the end of 3 years i.e. April2018.Further, interest on these notes is paid semi-annually.

 

10.  RELATED PARTY TRANSACTIONS

 

The related parties for each of the entities in the Group have been summarised in the table below:

 

Nature of the relationship

Related Party's Name


I. Holding Company

Gynia Holdings Ltd.



II. Ultimate Holding Company

Multi Asset Holdings Ltd. (Holding Company of Gynia Holdings Ltd.)

III. Enterprise over which Key Management Personnel (KMP) exercise control (with whom there are transactions)

Focus Energy Limited

 

Disclosure of transactions between the Group and related parties and the outstanding balances as of 30 September 2016, 30 September 2015 and 31 March 2016are as follows:

 

Transactions during the period

Particulars


Period ended

30 September 2016

Period ended

30 September 2015

Transactions with the Holding Company




 

Interest paid


4,163,497

3,920,098

 





 

Transactions with KMP




 

Short term employee benefits


94,587

233,216

 





 

Entity over which KMP exercise control




 

Share of cost incurred by the Focus in respect of the Block


28,451,839

32,193,085

 

Remittances


48,013,950

28,852,000

 

Expenses reimbursed


452,637

445,315

 

 

Amount outstanding towards related parties

 

Particulars

As at

30 September 2016

As at

 30 September 2015

As at

31 March 2016


 

Entity over which KMP exercise control





Payable to Focus Energy Limited

-

27,502,572

6,916,510


Advance for expenditure to related party

12,003,316

-

-


Payable with the Holding Company





Payables to Gynia Holding Limited*

132,271,106

124,208,932

128,107,609


Payable to KMP





Employee obligation

299,187

129,077

258,613


*including interest

 

Directors' remuneration

Directors' remuneration is included under administrative expenses, evaluation and exploration assets or development assets in the unaudited consolidated financial statements allocated on a systematic and rational manner.

 

11.ADVANCE FOR EXPENSES/PAYABLE TO RELATED PARTIES

 

Particulars

As at

30 September 2016

As at

 30 September 2015

              As at

31 March 2016

PAYABLE




Current




Payable to Focus Energy Limited

-

27,502,572

6,916,510

Payable to directors

299,187

129,077

258,613

Other than current




Payables to Gynia Holding Limited*

132,271,106

124,208,932

128,107,609

RECEIVABLE




Current




Advance for expenditure to related party

12,003,316

-

-

 

Advance for expenditure/payable to Focus

 

Receivable from/payable to Focus represents advance for expenditure given to related party in respect of the Group's share of contract costs, for its participating interest in Block RJ-ON/6 pursuant to the terms of Agreement for Assignment dated13 January 2006 and its subsequent amendments from time to time. Advance for expenditure to Focus for meeting company's share of expenses in the block RJ-ON-6/SGL Field.

 

The management estimates the current borrowings to be repaid on demand within twelve months from the statement of financial position date and these have been classified as current borrowings.

 

Liability payable to Gynia

 

* Borrowings from Gynia Holdings Ltd. carry interest rate of 6.5 per cent per annum compounded annually. During the current year, the entire outstanding balance (including interest) was made subordinate to the loans taken from the banks (detailed in note 13) and therefore, is payable along with related interest subsequent to repayment of bank loan in year 2024.

 

Interest capitalised on loans above have been disclosed in notes 7 and 8.

 

12. EARNINGSPER SHARE

 

The calculation of the earnings per share is based on the profits attributable to ordinary shareholders divided by the weighted average number of shares issued during the period.

 

Calculation of basic and diluted earnings per share is as follows:

 



Period ended

30 September 2016

Period ended

30September2015

 

 


 

 

Profit attributable to shareholders of Indus Gas Limited, for basic and dilutive


12,666,760

6,476,980

 

 

 

Weighted average number of shares (used for basic profit per share)


182,973,924

182,973,924

 

No. of equivalent shares in respect of outstanding options


-

311,260

 

Diluted weighted average number of shares (used for diluted profit per share


182,973,924

 

183,285,184

 

 





 

Basic earnings per share (US$)


0.07*

0.04*

 

Diluted earnings per share (US$)


0.07*

0.04*

 

 

*Rounded off to the nearest two decimal places.

 

13.  COMMITMENTS AND CONTINGENCIES

 

At 30 September 2016, the Group had capital commitments of US$ Nil (30 September 2015: US$ Nil; 31 March 2016: US$ Nil) in relation to property, plant & equipment - development/producing assets, in the Block.

 

The Group has no contingencies as at 30 September 2016(30 September 2015: Nil; 31 March 2016: Nil).

 

 

14.  FINANCIAL RISK MANAGEMENT

 

The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 March 2016.

 

15.  INCOME TAX CREDIT

 

Indus Gas profits are taxable as per the tax laws applicable in Guernsey where zero per cent tax rate has been prescribed for corporates. Accordingly, there is no tax liability for the Group in Guernsey. iServices and Newbury being participants in the PSC are covered under the Indian Income tax laws as well as tax laws for their respective countries. However, considering the existence of double tax avoidance arrangement between Cyprus and India, and Mauritius and India, profits in Newbury and iServices are not likely to attract any additional tax in their local jurisdiction. Under Indian tax laws, Newbury and iServices are allowed to claim the entire expenditure in respect of the Oil Block incurred until the start of commercial production (whether included in the exploration and evaluation assets or development assets) as deductible expense in the first year of commercial production or over a period of 10 years. The Company has opted to claim the expenditure in the first year of commercial production. As the Group has commenced commercial production in 2011 and has generated profits in Newbury and iServices, the management believes there is reasonable certainty of utilisation of such losses in the future years and thus a deferred tax asset has been created in respect of these.

 

16.  BASIS OF GOING CONCERNASSUMPTION

 

As at 30 September 2016, the Group had current liabilities amounting to US$ 50,521,440majority of which is towards current portion of borrowings from banks and related party, Focus. The Group expects to meet its next year (year ended 30 September 2016) obligation towards existing bank loans from internal generation of cash from operations.

 

 

17. FINANCIAL INSTRUMENTS

A summary of the Group's financial assets and liabilities by category is mentioned in the table below.

The carrying amounts of the Group's financial assets and liabilities as recognised at the end of the reporting periods under review may also be categorised as follows:


30 September 2016

30 September 2015

31 March 2016

 

Non-current assets




 

Loans and receivables




 

-Security deposits

885

6,225

885

 

Current assets




 

Loans and receivables




 

-Trade receivables

2,973,857

4,304,910

3,266,738

 

-Cash and cash equivalents

  10,316,555

  106,023,268 

61,081,916

 

Total financial assets under loans and receivables

13,291,297

 110,334,403

64,349,539

 

 

Financial liabilities measured at amortised cost:

Non-current liabilities




-  Long term debt

262,221,896

305,040,754

283,799,293

-  Payable to related parties

 132,271,106

 124,208,932

128,107,609

 

Current liabilities




-  Current portion long term debt

44,923,382

20,864,714

37,556,739

-  Current portion of payable to related parties

299,187

27,631,649 

7,175,123

-  Accrued expenses and other liabilities

221,785

167,991

175,372

Total financial liability measured at amortised cost

439,937,356

477,914,040

456,794,136

 

The fair value of the financial assets and liabilities described above closely approximates their carrying value on the statement of financial position dates.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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