TIDMINDI
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$5 per mmBtu in respect of
its existing gas sales contract. Discussions for the second
contract with GAIL and RRVUNL for the additional gas supplies to
the 160 MW turbine at Ramgarh are expected to be finalized in first
quarter of 2017. The gas turbine has been procured by RRVUNL and
the gas price needs to be mutually agreed. Discussions are also
being held for finalising the gas pipeline to evacuate additional
gas supply from the Non-SGL area of the block.
Commenting, Peter Cockburn, Chairman of Indus, said:
"Indus has made good progress in the period and continues to see
consistent growth in revenue and profits. The revenues are now
expected to increase substantially once the additional gas supplies
commence."
For further information please contact:
Indus Gas Limited
Peter Cockburn c/o +44 (0)20 76145900
Arden Partners plc
Steve Douglas / Patrick Caulfield +44 (0)20 7614 5900
Bell Pottinger PR
Lorna Cobbett +44 (0)777 1344 781
Indus Gas Limited and its subsidiaries
Unaudited Condensed Consolidated Interim Financial
Statements
30 September 2016
Unaudited Condensed Consolidated Statement of Financial
Position
(All amounts inUS$, unless otherwise stated)
Notes As at As at As at
30 September 30 September 31 March 2016
2016 2015
(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 As at As at
30 September 30 September 31 March
2016 2015 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 Six month ended
30 September 2016 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 Currency Merger Share Retained Total
paid-in translation reserve option earnings stockholders'
capital reserve reserve 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
Six months ended ended
30 September 30 September
2016 2015
(Unaudited) (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 $, unless otherwise stated) (Cont'd)
Six months ended Six months ended
30 September 2016 30 September
2015
(Unaudited) (Unaudited)
------------------------------------ ----------------- ---------------------- -------------------
(C ) Cash flow from financing
activities
Proceeds from long term debt
from banks - 44,400,000
Proceeds from issue of Multicurrency
Medium Term Note("MTN") - 69,548,283
Repayment of long term debt
from banks (14,569,586) (8,660,000)
Proceeds from related party 218,269 -
Payment of interest (9,114,813) (5,629,949)
--------------------- --------------
Net cash (used in)/ generated
from financing activities (23,466,160) 99,658,334
--------------------- --------------
Net change in cash and cash
equivalents (51,071,374) 93,742,091
--------------------- --------------
Cash and cash equivalents at
the beginning of the period 61,081,916 12,251,533
Effect of exchange rate change
on cash and cash equivalents 306,014 29,644
--------------------- --------------
Cash and cash equivalents at
the end of the period 10,316,555 106,023,268
--------------------- --------------
Cash and cash equivalents comprises
of
balances with banks 10,316,555 106,023,268
--------------------- --------------
(A) The purchase of property, plant and equipment above,
includes additions to exploration and evaluation assets amounting
to US$ 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 Period ended Year ended
30 September 2016 30 September 31 March 2016
2015
(Unaudited) (Unaudited) (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 -
(A) The 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).
(B) On 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 Development/ Bunk Vehicles Other Capital Total
well Production houses assets work-in-progress
test assets
equipment
-------------- -------- ---------- ------------- ---------- ---------- ---------- ----------------- ------------
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 Development/ Bunk Vehicles Other Capital Total
well test Production Houses assets work-in-progress
equipment assets
-------------- ----------------------------------- ---------- ------------- ----------- ---------- ---------- ------------------- ------------
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
-------------- ----------------------------------- ---------- ------------- ----------- ---------- ---------- ------------------- ------------
Land Extended Development/Production Bunk Vehicles Other Capital Total
well test assets houses assets work-in-progress
Cost equipment
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 30 September 31 March
2016 2015 2016
(Unaudited) (Unaudited) (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 30 September 31 March
2016 2015 2016
(Unaudited) (Unaudited) (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 Focus Energy Limited
Key Management Personnel (KMP)
exercise control (with whom
there are transactions)
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 Period ended
30 September 30 September
2016 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 As at As at
30 September 30 September 31 March
2016 2015 2016
---------------------------------- -------------- -------------- -----------
Entity over which KMP exercise
control
Payable to Focus Energy Limited - 27,502,572 6,916,510
Advance for expenditure to 12,003,316 - -
related party
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 As at As at
30 September 30 September 31 March
2016 2015 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 12,003,316 - -
related party
--------------------------------- -------------- -------------- -----------------------
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 Period ended
30 September 2016 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 31 March 2016
2015
------------------------------------------------------ ------------------ ----------------- --------------
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
END
IR FEUFEAFMSESE
(END) Dow Jones Newswires
December 29, 2016 02:00 ET (07:00 GMT)
Indus Gas (LSE:INDI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Indus Gas (LSE:INDI)
Historical Stock Chart
From Apr 2023 to Apr 2024