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OPG Power Ventures (OPG)

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Wednesday 08 December, 2021

OPG Power Ventures

Half-year Report

RNS Number : 9038U
OPG Power Ventures plc
08 December 2021
 

8 December 2021

 

OPG Power Ventures plc

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

 

Unaudited results for the six months ended 30 September 2021

 

OPG (AIM: OPG), the developer and operator of power generation plants in India, announces its unaudited results for the six months ended 30 September 2021 ("H1 FY22").

 

Highlights

· Revenue for the period increased by 54% to £55.6m (H1 FY21: £36.1m)

· H1 FY22 total generation, including deemed generation, of 1.3 billion units (H1 FY21: 0.8 billion units)

· Average tariff for group captive users in H1 FY22 was Rs5.47 per kWh (H1 FY21: Rs5.60 kWh)

· Diluted EPS (in pence) at 1.05p (H1 FY21: 2.92p)

· Net debt, including Non-Convertible Debentures ("NCDs"), reduced by 69 per cent to £5.0m in H1 FY22 (31 March 2021: £16.2m; 30 September 2020: £34.9m)

 

Summary financial information (including historic financial data):

 

 

HY 30 Sep 21

£ million

HY 30 Sep 20

£ million

FY 31 Mar 21

£ million

Revenue

55.6

36.1

93.8

Adjusted EBITDA*

11.6

19.4

33.7

Profit Before Tax

7.4

12.8

21.6

Profit After Tax

4.2

11.8

14.1

Diluted Earnings Per Share ("EPS") (pence)

1.05

2.92

3.50

* Adjusted EBITDA is calculated as operating profit before depreciation, amortisation and share based compensation.

 

Post period end developments and highlights

· Indonesian coal prices have steadily increased and reached its peak at the end of October 2021 and since then decreased by c.50% by the beginning of December 2021;

· Due to high coal prices and freight costs generation decreased and Plant Load Factor ("PLF") , incl. deemed, in October 2021 and November 2021 was 19.43% and   21.8% respectively (H1 FY20: 46%);

· Subsequent to 30 September 2021, OPG sold a cargo of coal and realised a profit of £3.8 million (Rs.0.4 billion);

 

Arvind Gupta, Chairman, commented :

"OPG's power generation recovered during H1 FY21. However, the prices of international coal and freight significantly increased during the second quarter of FY22 because of an unprecedented increase in demand for coal due to Chinese related geopolitical issues, revival of economies and heavy rains in certain coal-mining areas. Post period, our power generation was reduced due to high coal prices and freight costs. This is expected to affect our operational volumes, revenue and operating profit significantly for the 12 months ending 31 March 2022. However, coal prices moderated in November 2021 which provides us with confidence that the coal markets are normalising."

 

Presentation

The Company will be presenting via the Investor Meet Company at 11 am on 13 December 2021 The presentation will give investors and analysts the opportunity to listen to management discuss the Company's interim results for the six months ended 30 September 2021.

The presentation will be hosted by Dmitri Tsvetkov (Chief Financial Officer) and there will be an opportunity for Q&A at the end of the meeting.  Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

To sign up to the Company's presentation for free via Investor Meet Company please click the following link:   https://www.investormeetcompany.com/opg-power-ventures-plc/register-investor

Investors who already follow the Company on the Investor Meet Company platform will automatically be invited.

 

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

 

OPG Power Ventures PLC

+44 (0) 782 734 1323

Dmitri Tsvetkov

 

 

Cenkos Securities (Nominated Adviser & Broker)

+44 (0) 20 7397 8900

Stephen Keys / Katy Birkin

 

 

Tavistock (Financial PR)

+44 (0) 20 7920 3150

Simon Hudson / Nick Elwes

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time.


Chairman's Statement

 

Introduction

Events of H1 FY22 have been dominated by the abnormal increase of coal prices and freight tariffs and the global impact of COVID-19. The Board remains convinced that our strategy of maintaining operational excellence and paying down borrowings has helped the Company to mitigate the impact of the commodities prices volatility and the pandemic while providing a sound platform for the long term benefit of all our stakeholders.

 

Operations Summary

 

Details

HY

HY

FY

30 Sep 21

30 Sep 20

31 Mar 21

Generation (million kWh)

 

 

 

414 MW Plant generation

1,040

635

1,701

Additional "deemed" offtake at Chennai

255

196

406

Total Generation (MUe)1

1,296

831

2,107

 

 

 

 

Reported Average PLF (%)

71.3%

46%

58%

 

 

 

 

Average Tariff Realised (Rs)

5.47

5.60

5.52

Note: 1 MU / Mue - millions units or kWh of equivalent power

 

Focus on Maximizing Asset Performance and Deleveraging

Total Generation, including deemed generation, in H1 FY22 was 1.3 billion units, 56 per cent higher than in H1 FY21. Average group captive users' tariffs realised in H1 FY22 were Rs 5.47 per kWh (H1 FY21: Rs5.60 per kWh; FY21: Rs5.52 per kWh). 

 

Subsequent to 30 September 2021, the Company sold a cargo of coal and realised a profit of £3.8 million (Rs.0.4 billion).

 

As at 30 September 2021 net debt has been significantly reduced to £5.0m (31 March 2021: £16.2m; 30 September 2020: £34.9m) while total borrowings were £47.8 million, comprised of £19.6 million of NCDs and £19.6 million of existing term loans, with scheduled repayments spread from June 2022 to June 2024, as well as working capital loans of £8.6 million.

 

Over the last several months the prices of thermal coal and freight have surged primarily due to Chinese related geopolitical issues, increased imports of coal and other goods by China and other Asian countries on the back of post COVID-19 economic recovery. Whilst OPG was 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. The Company is expecting to cover at least a portion of its coal needs from the domestic sources under long-term fixed price arrangements.  We continue to believe that the prices of coal and freight will moderate later in the short-term.

 

62 MW Karnataka Solar projects

As previously announced, the Board has decided to sell OPG's interest in 62MW Karnataka solar projects and these assets remain in a disposal process.

 

Building a 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 been developing 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, notably solar power, and to establish joint ventures to roll out various energy transition technologies, including energy efficiency improvements, green hydrogen, etc. 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.

 

The Indian Economy and Power Sector

As a consequence of COVID-19 the IMF's World Economic Update in November 2021 estimated that the Indian annual GDP growth rate will be 9.5 per cent in 2021 and 8.5 per cent in 2022.

 

The Reserve Bank of India, the country's central bank and banking regulator, has taken several steps to mitigate the negative impact of the lockdown on the economy through various monetary policy measures: including a reduction in repo and reverse repo rates, a moratorium on loan repayments, a 90 days freeze on non-performing assets declaration, helping MSMEs with stimulus packages and credit lines for incentivising industries. These measures coupled with the easing of lockdown restrictions in a phased manner are helping economic activity to resume.

 

Indian power consumption per capita was only 1,208 kWh in FY 2020. It is expected that this will catch up with developed economies with similar social and economic conditions over time.

 

The all-India electricity demand during the period from April 2021 to September 2021 has increased by 12.7% to 707 billion units ("BU") on a year-on-year (YoY) basis supported by a lower base, improvement in economic activity and lower than normal monsoons leading to higher demand from the agriculture segment during July and August 2021.

 

India's power consumption rose by 3.6% to 100.42 BU in November 2021 compared with 96.88 BU in November 2020 and 93.94 BU in November 2019.

 

Outlook

During the first seven months to the end of October 2021 the prices of thermal coal and freight have surged 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. However, coal prices decreased by approximately 50% by the beginning of December 2021 and the Company anticipates that coal prices will normalise over time.

 

While generation and revenue recovered in H1 FY22, and the Company was profitable and cash generative but we expect that the Company's full year FY22 generation, we will not be operating at full capacity and revenue and net profit will reduce in comparison with FY21 due to the negative impact of high coal prices and freight costs. This will also impact the Company's net debt position as at 31 March 2022.

 

We believe that the medium-term and long-term fundamentals of the Group remain unchanged and post-COVID-19 recovery and normalisation of coal prices and freight costs, the Company expects to prosper as management seeks to deliver its long term, profitable and sustainable business model. We will also continue to focus on advancing our ESG agenda.

 

Consolidated Statement of Financial Position

As at 30 September 2021

 

(All amount in £, unless otherwise stated)

 

As at

As at

As at

 

Notes

30 Sep 2021

30 Sep 2020

31 March 2021

Assets

 

 

 

 

Non-current assets

 

 

 

 

Intangible assets

14

1,206

5,716

2,394

Property, plant and equipment

15

171,809,578

186,412,926

172,716,040

Other long-term assets

16

83,308

405,534

69,853

Restricted cash

19

9,262,942

26,567

8,194,412

 

 

181,157,034

186,850,743

180,982,699

Current assets

 

 

 

 

Inventories

18

13,634,187

7,866,415

12,186,644

Trade and other receivables

17

17,329,073

24,238,726

14,829,989

Other short-term assets

16

32,026,018

6,837,783

17,805,554

Current tax assets (net)

 

1,147,676

1,292,128

1,131,342

Restricted cash

19(b)

3,122,794

4,859,556

3,219,356

Cash and cash equivalents

19(a)

9,440,379

9,374,849

8,920,952

Assets held for sale

7

16,638,171

14,720,769

16,425,368

 

 

93,338,298

69,190,226

74,519,205

 

 

 

 

 

Total assets

 

274,495,332

256,040,969

255,501,904

 

 

 

 

 

Equity and liabilities

 

 

 

 

Equity

 

 

 

 

Share capital

20

58,909

58,909

58,909

Share premium

20

131,451,482

131,451,482

131,451,482

Other components of equity

 

(11,055,720)

(3,746,172)

(12,735,470)

Retained earnings

 

46,123,296

39,587,495

41,910,280

Equity attributable to owners of the Company

 

166,577,967

167,351,714

160,685,201

Non-controlling interests

 

876,369

881,530

881,869

Total equity

 

167,454,336

168,233,244

161,567,070

 

 

 

 

 

Liabilities

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

22

17,938,299

21,740,994

22,260,206

Non-Convertible Debentures

22

20,043,153

21,110,407

19,840,089

Trade and other payables

 

613,923

176,936

607,702

Deferred tax liabilities (net)

13

16,369,637

7,485,509

12,994,371

 

 

54,965,012

50,513,846

55,702,368

Current liabilities

 

 

 

 

Borrowings

22

9,830,045

1,430,290

4,510,358

Trade and other payables

 

37,103,471

35,358,949

32,495,799

Other liabilities

6(a)

5,142,468

504,640

1,226,309

 

 

52,075,984

37,293,879

38,232,466

Total liabilities

 

107,040,996

87,807,725

93,934,834

 

 

 

 

 

Total equity and liabilities

 

274,495,332

256,040,969

255,501,904

 

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

 

The financial statements were authorised for issue by the board of directors on 7 December 2021 and were signed on its behalf by Arvind Gupta, Chairman and Dmitri Tsvetkov, Chief Financial Officer.

 

 

Consolidated Statement of Comprehensive Income

For the six months period ended 30 September 2021

 

(All amount in £, unless otherwise stated)

 

Six months

Period ended

Six months

Period ended

Year ended

 

Notes

30 Sep 2021

30 Sep 2020

31 March 2021

Revenue

8

55,603,742

36,089,887

93,823,933

Cost of revenue

9

(41,068,565)

(22,134,375)

(56,893,065)

Gross profit

 

14,535,177

13,955,512

36,930,868

Other Operating income

10(a)

-

9,628,703

9,420,712

Other income

10(b)

1,240,131

505,562

1,921,546

Distribution cost

 

(2,037,380)

(2,947,582)

(4,791,056)

General and administrative expenses

 

(2,247,971)

(2,000,180)

(7,256,153)

Expected credit loss on trade receivables

 

-

-

(3,025,055)

Depreciation and amortisation

 

(2,800,143)

(2,983,195)

(5,705,538)

Operating profit

 

8,689,814

16,158,820

27,495,324

Finance costs

11

(2,675,395)

(3,681,194)

(6,803,137)

Finance income

12

1,367,175

284,328

868,439

Profit before tax

 

7,381,594

12,761,954

21,560,626

Tax expense

13

(3,390,062)

(1,865,120)

(8,447,699)

Profit for the year from continued operations

 

3,991,532

10,896,834

13,112,927

Gain/(Loss) from discontinued operations, including Non-Controlling Interest

7

212,803

881,687

999,398

Profit for the year

 

4,204,335

11,778,521

14,112,325

Profit for the year attributable to:

 

 

 

 

Owners of the Company

 

4,213,016

11,769,020

14,091,806

Non - controlling interests

 

(8,682)

9,501

20,518

 

 

4,204,334

11,778,521

14,112,324

Earnings per share from continued operations

 

 

 

 

Basic earnings per share (in pence)

 

1.00

2.72

3.27

Diluted earnings per share (in pence)

 

0.99

2.70

3.25

Earnings per share from discontinued operations

 

 

 

Basic earnings per share (in pence)

 

0.05

0.27

0.30

Diluted earnings per share (in pence)

 

0.05

0.27

0.30

Earnings per share

 

 

 

 

-Basic (in pence)

 

1.05

2.94

3.52

-Diluted (in pence)

 

1.05

2.92

3.50

Other comprehensive income / (loss)

 

 

 

 

Items that will be reclassified subsequently to profit or loss

 

 

 

 

Exchange differences on translating foreign operations

 

1,582,361

(2,746,435)

(12,860,261)

Items that will be not reclassified subsequently to profit or loss

 

 

 

 

Exchange differences on translating foreign operations, relating to non-controlling interests

 

3,182

(2,644)

(13,322)

Total other comprehensive income / (loss)

 

1,585,544

(2,749,079)

(12,873,583)

 

 

 

 

 

Total comprehensive income

 

5,789,878

9,029,442

1,238,741

 

 

 

 

 

Total comprehensive income / (loss) attributable to:

 

 

 

 

Owners of the Company

 

5,795,377

9,022,585

1,231,546

Non-controlling interest

 

(5,500)

6,857

7,196

 

 

5,789,878

9,029,442

1,238,741

 

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

 

Consolidated Statement of Changes in Equity

For the six months period ended 30 September 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 2020

400,733,511

58,909

131,451,482

7,486,127

(8,809,114)

27,818,474

158,005,878

497,955

158,503,832

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

-

-

-

-

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

 

 

 

 

 

 

 

 

 

 

At 1 April 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

 

 

 

 

 

 

 

 

 

 

Employee Share based payment LTIP

(Note 21)

-

-

-

97,389

-

-

97,389

-

97,389

Transaction with owners

-

-

-

97,389

-

-

97,389

-

97,389

 

 

 

 

 

 

 

 

 

 

Profit for the year

-

-

-

-

-

4,213,016

4,213,016

(8,682)

4,204,334

Other comprehensive income

-

-

-

-

1,582,361

-

1,582,361

3,182

1,585,543

Total comprehensive income

-

-

-

-

1,582,361

4,213,016

5,795,377

(5,500)

5,789,877

 

 

 

 

 

 

 

 

 

 

At 30 Sep 2021

400,733,511

58,909

131,451,482

8,118,763

(19,174,483)

46,123,296

166,577,967

876,369

167,454,336

 

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

 

Consolidated statement of cash flows

For the six months period ended 30 September 2021

 

 

 

Six months

Period ended

Six months

Period ended

Year ended

(All amount in £, unless otherwise stated)

Notes

30 Sep 2021

30 Sep 2020

31 March 2021

Cash flows from operating activities

 

 

 

 

Profit before income tax including discontinued operations

 

7,594,397

13,643,638

22,560,024

Adjustments for:

 

 

 

 

(Profit)/Loss from discontinued operations, net

7

(212,803)

(881,687)

(999,398)

Unrealised foreign exchange loss

9(c)

35,633

231,416

46,931

Financial costs

11

2,638,111

3,449,773

6,756,206

Financial income

12

(1,367,175)

(284,328)

(864,156)

Share based compensation costs

21

97,389

267,623

535,247

Depreciation and amortisation

 

2,800,143

2,983,195

5,705,538

Expected credit loss on Trade receivables

 

-

-

3,025,055

Changes in working capital

 

 

 

 

Trade and other receivables

 

(2,297,761)

2,190,563

7,404,759

Inventories

 

(1,294,895)

3,414,812

(1,654,539)

Other assets

 

(2,590,907)

1,750,744

4,976,235

Trade and other payables

 

3,507,337

(6,025,769)

(7,106,516)

Other liabilities

 

3,611,458

(62,560)

490,711

Cash generated from continuing operations

 

12,520,927

20,677,420

40,876,097

Taxes paid

 

(673,053)

(730,037)

(709,277)

Cash provided by operating activities of continuing operations

 

11,847,874

19,947,383

40,166,820

Net cash provided by operating activities

 

11,847,874

19,947,383

40,166,820

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Purchase of property, plant and equipment (including capital advances)

 

(181,177)

(320,380)

(506,222)

Interest received

 

1,367,175

284,329

864,156

Movement in restricted cash

 

(837,100)

2,508,449

(4,655,096)

Purchase of investments

 

(10,490,070)

(754,439)

(25,250,994)

Cash (used in) / from investing activities of continuing operations

 

(10,141,172)

1,717,959

(29,548,156)

Net cash (used in) / from investing activities

 

(10,141,172)

1,717,959

(29,548,156)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Proceeds from borrowings (net of costs)

 

1,799,014

21,133,852

21,981,043

Repayment of borrowings

 

(1,095,275)

(33,339,333)

(27,938,844)

Finance costs paid

 

(1,992,151)

(3,449,773)

(5,812,498)

Cash used in financing activities of continuing operations

 

(1,288,412)

(15,655,254)

(11,770,299)

Net cash used in financing activities

 

(1,288,412)

(15,655,254)

(11,770,299)

 

 

 

 

 

Net (decrease) / Increase in cash and cash equivalents from continuing operations

 

418,290

6,010,088

(1,151,635)

Net (decrease) / increase in cash and cash equivalents

 

418,290

6,010,088

(1,151,635)

 

 

 

 

 

Cash and cash equivalents at the beginning of the year

 

8,920,952

3,438,830

3,438,830

Cash and cash equivalents on deconsolidation

 

-

-

(28,560)

Exchange differences on cash and cash equivalents

 

101,137

(74,069)

6,662,317

Cash and cash equivalents at the end of the year

 

9,440,379

9,374,849

8,920,952

 

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

 

Notes

 

(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 equity shares are listed on the AIM Market of the London Stock Exchange  ("AIM").

 

The Consolidated Financial statements for the period ended 30 September 2021 were approved and authorised for issue by the Board of Directors on 7 December 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

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 hence so there is 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:

 

Mandatorily effective for periods beginning on or after 1 January 2022

i) IAS 16 Property, Plant and Equipment (Amendment - Proceeds before Intended Use)

ii) AS 37 Provisions, Contingent Liabilities and Contingent Assets (Amendment - Onerous Contracts - Cost of Fulfilling a Contract)

iii) IFRS 3 Business Combinations (Amendment - Reference to the Conceptual Framework)

 

Mandatorily effective for periods beginning on or after 1 January 2023

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

ii) IAS 1 Presentation of Financial Statements and IAS8 Accounting Policies, Changes in Accounting Estimates and Errors(Amendment - Classification of Liabilities as Current or Non-current)

iii) IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 (Amendment - Disclosure of Accounting Policies)

iv) IAS 8 Accounting policies, Changes in Accounting Estimates and Errors (Amendment - Definition of Accounting Estimates)

v) IAS 12 Income Taxes (Amendment - Deferred Tax related to Assets and Liabilities arising from a Single Transaction)

 

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 30 September 2021 (Note 7).

 

Going concern

As at 30 September 2021 the Group had £9.4m in cash and net current assets of £41.3m.  The directors and management have prepared a cash flow forecast to December 2022, 12 months from the date this report 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.

 

For the year ended 31 March 2021, the Group had considered the probable impact arising due to Covid-19 and included a specific accounting judgement and estimation uncertainty in relation to the impact of coronavirus on its operations and going concern assessments. During the six months ended 30 September 2021, the economy has continued to recover from the effects of the pandemic, and accordingly the specific accounting judgement and estimation uncertainty in relation to the impact of coronavirus is significantly reduced.

 

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 30 September 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 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

 

Immediate parent

Country of incorporation

% Voting Right

% Economic interest

Sept. 2021

Sept. 2020

March 2021

Sept. 2021

Sept. 2020

March 2021

Caromia Holdings limited ('CHL')

OPGPV

Cyprus

100

100

100

100

100

100

Gita Power and Infrastructure Private Limited, ('GPIPL')

CHL

India

100

100

100

100

100

100

OPG Power Generation Private Limited ('OPGPG')

GPIPL

India

73.77

73.16

71.25

71.25

99.91

99.91

Samriddhi Solar Power LLP(*)

OPGPG

India

-

73.16

-

-

  99.91

-

Samriddhi Surya Vidyut Private Limited

OPGPG

India

71.25

73.16

71.25

71.25

99.91

99.91

OPG Surya Vidyut LLP(*)

OPGPG

India

-

73.16

-

-

  99.91

-

Powergen Resources Pte Ltd

OPGPV

Singapore

98.69

98.56

98.56

100

100

100

(*)During FY21 withdrawn as a partner from LLP

 

 

 

 

 

 

ii) Associates

Avanti Solar Energy Private Limited

OPGPG

India

31

31

31

31

31

31

Mayfair Renewable Energy (I) Private Limited)

OPGPG

India

31

31

31

31

31

31

Avanti Renewable Energy Private Limited

OPGPG

India

31

31

31

31

31

31

Brics Renewable Energy Private Limited

OPGPG

India

31

31

31

31

31

31

 

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 (£) as submitted to the AIM counter of the London Stock Exchange where the shares of the Company are listed.

 

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 30 September 2021: 99.78 (2021: 100.81, 2020: 94.74) and the average rate for the period ended 30 September 2021: 101.94 (2021 96.72, 2020 : 87.97).

 

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 biling cycle under the contractual arrangement with the captive power shareholders & customers respectively 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 analysing 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 remain in 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 year 2021 the Group has deconsolidated solar entities and are classified as associates (note 7). Accordingly, there is only 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.

 

Contractual payments under power supply agreement

The Group has received £4,181,162 during the period on account of change in law as per terms of power supply agreement. The amount received is grouped under other current liabilities relates to period 2014-2020 and shall be recognised as revenue on approval from regulatory authority.

 

 

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 30 September 2021 and expects the interest in the solar companies to be sold within the next 12 months.

 

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.

 

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 from discontinued operations

 

At 30

Sept.

2021

At 30

Sept.

2020

At 31 March 2021

At 30 Sept. 2021

At 30 Sept. 2020

At 31 March 2021

At 30 Sept. 2021

At 30 Sept. 2020

At 31 March 2021

i Interest in Solar entities

16,638,171

14,720,769

16,425,368

-

-

-

-

-

-

ii Share of Profit from Solar entities

-

 

-

-

-

-

-

-

117,711

iii Gain on deconsolidation of Solar entities

-

 

-

-

-

-

212,803

881,687

881,687

Total

16,638,171

14,720,769

16,425,368

-

-

-

212,803

881,687

999,398

 

Assets held for sale and discontinued operations of solar entities

During FY19, the results of the operations of solar entities Avanti Solar Energy Private Limited, Mayfair Renewable Energy 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 and six months ended 30 September 2021 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 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 these solar associates.

 

Non-current Assets held-for-sale and discontinued operations

(a) Assets of disposal group classified as held-for-sale

As at

30 Sept. 2021

As at

30 Sept. 2020

As at

31 March 2021

Investment in associates classified as held for sale

16,638,171

14,720,769

16,425,368

Total

16,638,171

14,720,769

16,425,368

(b) Liabilities of disposal group classified as held-for-sale

As at

30 Sept. 2021

As at

30 Sept. 2020

As at

31 March 2021

Liabilities of disposal group classified as held-for-sale

-

-

-

Total

-

-

-

(c) Analysis of the results of discontinued operations is as follows:

Six months ended

30 Sept. 2021

Six months ended

30 Sept. 2020

FY21

Share of Profit from Solar entities

212,803

-

117,711

Gain on deconsolidation of Solar entities

-

881,687

881,687

Profit / (Loss) from Solar operations

212,803

881,687

999,398

 

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 FY21 the Group has deconsolidated solar entities and are classified as associates (note 7). 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 £5,883,758 (2021: £28,720,575).

 

Segmental information disclosure

 

Continuing operations

Discontinued operations

 

Thermal

Solar

Segment Revenue

Six months ended

30 Sept. 2021

Six months ended

30 Sept. 2020

FY 21

Sales

55,603,742

36,089,887

93,823,933

-

-

-

Total

55,603,742

36,089,887

93,823,933

-

-

-

Other Operating income

-

9,628,703

9,420,712

 

-

-

 

 

 

 

 

 

 

Depreciation, impairment

(2,800,143)

(2,983,195)

(5,705,538)

-

-

-

 

 

 

 

-

-

-

Profit from operation

8,689,814

16,158,820

27,495,324

-

-

-

Finance Income

1,367,175

284,328

868,439

-

-

-

Finance Cost

(2,675,395)

(3,681,194)

(6,803,137)

-

-

-

Tax expenses

(3,390,062)

(1,865,120)

(8,447,699)

-

-

-

Gain on deconsolidation of Solar entities

-

-

-

-

881,687

881,687

Share of Profit in Solar entities

-

-

-

212,803

-

117,711

Profit for the year / Period

3,991,532

10,896,834

13,112,927

212,803

881,687

999,398

Assets

257,857,161

241,320,200

239,076,536

16,425,368

16,638,171

16,425,368

Liabilities

107,040,996

87,807,725

93,934,834

-

-

-

 

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

 

Cost of fuel

 

 

 

 

 Six months ended

30 Sept. 2021

 Six months ended

30 Sept. 2020

FY21

Included in cost of revenue:

 

 

 

Cost of fuel consumed

38,721,460

20,965,590

54,095,390

Other direct costs

2,347,105

1,168,785

2,797,675

Total

41,068,565

22,134,375

56,893,065

 

 

 

-

 

 

 

 

Employee benefit expenses forming part of general and administrative expenses are as follows:

 

 

 

Six months ended

30 Sept. 2021

Six months ended

30 Sept. 2020

FY21

Salaries and wages

1,037,241

960,822

2,139,303

Employee benefit costs

96,035

70,241

228,112

Long Tern Incentive Plan

97,389

267,624

535,247

Total

1,230,665

1,298,686

2,902,662

 

 

 

 

 

 

 

 

Foreign exchange movements (realised and unrealised) included in the Finance costs is as follows:

 

Six months ended

30 Sept. 2021

Six months ended

30 Sept. 2020

FY21

Foreign exchange realised loss / (gain)

202,607

(68,866)

213,524

Foreign exchange unrealised- loss / (gain)

44,532

231,416

46,931

Total

247,139

162,550

260,455

 

 

 

 

10. Other operating income and expenses

 

 

 

 

 

 

 

Other operating income

 

 

 

 

Six months ended

30 Sept. 2021

Six months ended

30 Sept. 2020

FY21

Contractual claims payments

-

9,628,703

9,420,712

Total

-

9,628,703

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

 

 

 

 

Six months ended

30 Sept. 2021

Six months ended

30 Sept. 2020

FY21

Sale of coal

749,197

208,437

616,708

Sale of fly ash

41,392

7,697

16,271

Power trading commission and other services

120,242

4,367

147,166

Others

329,300

285,062

1,141,401

Total

1,240,131

505,562

1,921,546

 

 

 

 

11. Finance costs

 

 

 

 

 

 

 

Finance costs are comprised of:

 

 

 

 

Six months ended

30 Sept. 2021

Six months ended

30 Sept. 2020

FY21

Interest expenses on borrowings 

2,128,085

3,495,422

5,848,895

Net foreign exchange loss (Note 9)

126,565

162,550

260,455

Other finance costs

420,745

23,222

693,787

Total

2,675,395

3,681,194

6,803,137

Other finance costs include charges and cost related to LC's for import of coal and other charges levied by bank on transactions

 

 

 

 

12. Finance income

 

 

 

 

 

 

 

Finance income is comprised of:

 

 

 

 

Six months ended

30 Sept. 2021

Six months ended

30 Sept. 2020

FY21

Interest income on bank deposits and advances

302,883

284,328

401,194

Gain on disposal / fair value of financial instruments*

1,064,293

-

467,245

Total

1,367,176

284,328

868,439

*Financial instruments represent the mutual funds held during the period.

 

 

 

 

 

 

 

13. Tax expenses

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

30 Sept. 2021

Six months ended

30 Sept. 2020

FY21

Current tax

216,220

155

412,513

Deferred tax

3,173,842

1,864,965

8,035,186

Tax reported in the statement of comprehensive income

3,390,062

1,865,120

8,447,699

         

 

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, 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 2021: 17.47%).

 

 

14. Intangible assets

 

Acquired software licences

 

 

 

 

Cost

30 Sept. 2021

30 Sept. 2020

31 March 2021

Opening

763,595

827,065

827,065

Additions

-

-

-

Exchange adjustments

7,816

(14,610)

(63,470)

Total

771,410

812,455

763,595

 

 

 

 

Accumulated depreciation and impairment

 

 

 

Opening

761,201

818,020

818,020

Charge for the year / Period

1,187

3,173

6,209

Exchange adjustments

7,817

(14,454)

(63,028)

At 31 March 2021

770,205

806,739

761,201

 

 

 

 

Net book value

1,206

5,716

2,394

 

15. Property, plant and equipment

The property, plant and equipment comprises of:

 

 

Land & Buildings

Power stations

Other plant & equipment

Vehicles

Asset under construction

Total

Cost

 

 

 

 

 

 

At 1 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

 

 

 

 

 

 

 

At 1 April 2021

8,388,982

200,460,226

1,766,719

748,624

122,717

211,487,267

Additions

-

62,898

10,853

1,588

83,634

158,973

Transfers on capitalisation

-

-

-

-

-

-

Sale / Disposals

-

-

-

-

-

-

Exchange adjustments

84,610

2,053,769

17,970

7,601

986

2,164,936

At 30 September 2021

8,473,592

202,576,893

1,795,541

757,813

207,337

213,811,176

 

 

 

 

 

 

 

Accumulated depreciation and impairment

 

 

 

 

 

 

At 1 April 2021

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

 

 

 

 

 

 

 

At 1 April 2021

61,319

37,039,448

1,062,450

608,010

-

38,771,227

Charge for the period

6,351

2,648,699

128,242

15,664

-

2,798,956

Sale / Disposals

-

-

-

-

-

-

Exchange adjustments

979

410,311

13,632

6,493

-

431,415

At 30 September 2021

68,649

40,098,458

1,204,324

630,167

-

42,001,598

 

 

 

 

 

 

 

Net book value

 

 

 

 

 

 

At 30 September 2021

8,404,943

162,478,435

591,218

127,646

207,337

171,809,578

At 31 March 2021

8,327,663

163,420,778

704,269

140,614

122,717

172,716,040

At 30 September 2020

8,648,100

176,122,741

901,135

351,466

389,484

186,412,926

 

 

16. Other assets

 

As at

30 Sept. 2021

As at

30 Sept. 2020

As at

31 March 2021

A. Short-term

 

 

 

Capital advances

105,907

112,070

124,601

Financial instruments measured at fair value through P&L

24,125,311

1,480,545

13,253,663

Advances and other receivables

7,794,800

5,245,168

4,427,290

Total

32,026,018

6,837,783

17,805,554

 

 

 

 

B. Long-term

 

 

 

Lease deposits

-

389,022

-

Bank deposits

71,168

-

57,713

Other advances

12,140

16,512

12,140

Total

83,308

405,534

69,853

 

The financial instruments of £24,125,311 (2021: £13,253,663) represent investments in mutual funds and their fair value is determined by reference to published data.

 

17. Trade and other receivables

 

As at

30 Sept. 2021

As at

30 Sept. 2020

As at

31 March 2021

Current

 

 

 

Trade receivables

17,329,073

24,238,726

14,829,989

 

17,329,073

24,238,726

14,829,989

 

 

 

 

 

 

18. Inventories

 

 

 

 

As at

30 Sept. 2021

As at

30 Sept. 2020

As at

31 March 2021

Coal and fuel

12,230,429

6,790,041

11,228,377

Stores and spares

1,403,758

1,076,374

958,267

Total

13,634,187

7,866,415

12,186,644

The entire amount of above inventories has been pledged as security for borrowings

 

19. Cash and cash equivalents and Restricted cash

 

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

 

 

 

As at

30 Sept. 2021

As at

30 Sept. 2020

As at

31 March 2021

Investment in Mutual funds

1,834,212

-

1,815,629

Cash at banks and on hand

7,606,168

9,374,849

7,105,323

Total

9,440,379

9,374,849

8,920,952

 

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 £3,122,794 (2021: £3,219,356) 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 £9,262,942 (2021: £8,194,412). Investments of £ 8,266,192 (2021: £8,182,445) are allocated to debenture redemption fund earmarked towards redemption of non-convertible debentures scheduled during FY2024 of £20,043,153.

 

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.

 

As at 30 September 2021, the Company has an authorised and issued share capital of 400,733,511 (31 March 2021: 400,733,511) equity shares at par value of £ 0.000147 (31 March 2021: £ 0.000147) per share amounting to £58,909 (31 March 2021: £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 has 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). 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, £97,389 (FY20: £535,247) 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

30 Sept. 2021

30 Sept. 2020

31 March 2021

Borrowings at amortised cost

10.35-11.40

June 2024

27,768,344

23,171,284

26,770,564

Non-Convertible Debentures at amortised cost

9.85

June 2023

20,043,153

21,110,407

19,840,089

Total

 

 

47,811,497

44,281,691

46,610,653

 

The term loans of £23.8m, non-convertible debentures of £20.0m and working capital loans of £4.0m 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 30 September 2021, the Group has met all the relevant covenants. The Group raised approximately £20.0 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.

 

The fair value of borrowings at 30 September 2021 was £47,811,497 (2021: £46,610,653, 30 September 2020 44,281,691). 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:

 

30 Sept. 2021

30 Sept. 2020

31 March 2021

Current liabilities

 

 

 

Amounts falling due within one year

9,830,045

1,430,290

4,510,358

 

 

 

 

Non-current liabilities

 

 

 

Amounts falling due after 1 year but not more than 5 years

37,981,452

42,851,401

42,100,295

Total

47,811,497

44,281,691

46,610,653

 

-ends-

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