TIDMINDI
RNS Number : 3174Y
Indus Gas Limited
31 December 2019
Indus Gas Limited and its subsidiaries
("Indus" or the "Company")
Unaudited Condensed Consolidated Interim Financial
Statements for the six month period ended 30 September 2019
Indus Gas Limited (AIM:INDI.L), an oil & gas exploration and
development company, is pleased to report its interim results for
the six month period ending 30 September 2019.
Consolidated reported adjusted revenues, operating profit and
profit before tax for the interim period ending 30 September 2019
were US$ 27.69m (US$ 27.78 interim 2018), US$ 26.30m (US$ 23.42m
interim 2018) and US$ 26.11m (US$ 23.57m interim 2018)
respectively.
The Company has continued to make provision for a notional
deferred tax liability of US$ 1.68m (US$ 5.85m interim 2018), in
accordance with IFRS requirements.
The Petroleum & Natural Gas Regulatory Board ("PNGRB") have
invited bids for the laying of a gas pipeline from RJ-ON/6 Block
for a new pipeline route so that the pipeline tariff is minimized.
Approvals from the Directorate General of Hydrocarbons ('DGH') and
Government had already been received for the development and
enhanced production covering a total field area of 2176 sq. km with
approved gas reserves of 1.8 tcf.
Commenting, Peter Cockburn, Chairman of Indus, said:
"While the approval of an integrated Field Development Plan
('FDP') for SSG and SSF and a revised FDP for SGL is already in
place, the evacuation of gas through a new pipeline at an
appropriate tariff will accelerate the monetization of our gas
reserves."
For further information, please contact:
Indus Gas Limited
Peter Cockburn
Jonathan Keeling +44 (0) 20 7877 0022
Arden Partners plc
Ciaran Walsh / Steve Douglas / Dan Gee-Summons (Corporate
Finance) +44 (0) 20 7614 5900
James Reed-Daunter (Equity Sales)
Unaudited Condensed Consolidated Statement of Financial
Position
Notes As at As at As at
30 September 30 September 31 March
2019 2018 2019
(Unaudited) (Unaudited) (Audited)
ASSETS
Non-current assets
Intangible assets: exploration
and evaluation assets 6 - - -
Property, plant and equipment 7 909,083,224 796,677,681 851,277,557
Tax assets 2,099,982 2,608,056 2,695,055
Other assets 590 774 605
Total non-current assets 911,183,796 799,286,511 853,973,217
-------------- -------------- -------------
Current assets
Inventories 6,309,798 8,607,174 9,327,984
Trade receivables 25,865,383 15,642,575 27,617,626
Recoverable from related
party 74,920,236 62,071,616 57,098,640
Other current assets 49,807 54,056 10,957
Cash and cash equivalents 6,296,967 864,273 129,152
Total current assets 113,442,191 87,239,694 94,184,359
-------------- -------------- -------------
Total assets 1,024,625,987 886,526,205 948,157,576
============== ============== =============
LIABILITIES AND EQUITY
Shareholders' equity
Share capital 36,19,443 36,19,443 3,619,443
Additional paid-in capital 46,733,689 46,733,689 46,733,689
Currency translation reserve (9,313,782) (9,313,781) (9,313,782)
Merger reserve 19,570,288 19,570,288 19,570,288
Retained earnings 164,183,991 119,981,026 139,755,664
Total shareholders' equity 224,793,629 180,590,665 200,365,302
-------------- -------------- -------------
(All amounts in US$, unless otherwise stated)
LIABILITIES
Non-current liabilities
Long term debt , excluding
current portion 8 232,246,203 268,180,256 249,722,044
Provision for decommissioning 1,707,761 1,520,200 1,606,825
Deferred tax liabilities (net) 91,125,648 78,885,614 89,442,675
Payable to related parties,
excluding current portion 10 400,835,351 297,040,487 331,088,491
Deferred revenue 25,563,995 25,563,995 25,563,995
Total non-current liabilities 751,478,958 661,190,554 697,424,030
-------------- ------------ ------------
Current liabilities
Current portion of long-term
debt 8 40,909,823 37,640,707 42,869,400
Current portion payable to
related parties 10 352,534 352,985 352,909
Accrued expenses and other
liabilities 2,013,957 1,674,208 2,068,849
Deferred revenue 5,077,086 5,077,086 5,077,086
Total current liabilities 48,353,400 44,744,986 50,368,244
-------------- ------------ ------------
Total liabilities 799,832,358 705,935,540 747,792,274
-------------- ------------ ------------
Total liabilities and equity 1,024,625,987 886,526,205 948,157,576
============== ============ ============
(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 months ended 30 September
30 September 2019 2018
Unaudited Unaudited
------------------------------------ -------------- ------------------ -----------------
Revenue 27,690,196 27,775,085
Cost of sales (1,089,176) (3,218,897)
Administrative expenses (303,970) (1,132,978)
Profit from operations 26,297,050 23,423,210
------------- -------------------
Foreign exchange gain/(loss),
net (245,732) 142,884
Interest income 59,984 22
Profit before tax 26,111,302 23,566,116
------------- -------------------
Income taxes
-Deferred tax charge (1,682,975) (5,854,083)
Profit for the period (attributable
to the shareholder of the
Group) 24,428,327 17,712,033
------------- -------------------
Total comprehensive income
for the period (attributable
to the shareholders of the
Group) 24,428,327 17,712,033
------------- -------------------
Earnings per share
Basic 0.13 0.10
Diluted 0.13 0.10
------------- -------------------
(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)
Share capital Additional Currency Merger Share (Accumulated Total
Number Amount paid-in translation reserve option losses)/ stockholders'
capital reserve reserve Retained equity
earnings
Balance as at
1 April
2019 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 - 139,755,664 200,365,302
--------------- ------------ ---------- ----------- ------------ ----------- -------- ------------- --------------
Profit for the
period - - - - - - 24,428,327 24,428,327
--------------- ------------ ---------- ----------- ------------ ----------- -------- ------------- --------------
Total
comprehensive
income for
the period - - - - - - 24,428,327 24,428,327
--------------- ------------ ---------- ----------- ------------ ----------- -------- ------------- --------------
Balance as at
30
September
2019 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 - 164,183,991 224,793,629
--------------- ------------ ---------- ----------- ------------ ----------- -------- ------------- --------------
Balance as at 1
April
2018 182,973,924 3,619,443 46,733,689 (9,313,781) 19,570,288 - 102,268,993 162,878,632
-------------------- ------------ ---------- ----------- ------------ ----------- ------------ ------------
Profit for the
period - - - - - - 17,712,033 17,712,033
-------------------- ------------ ---------- ----------- ------------ ----------- ------------ ------------
Total comprehensive
income for the
period - - - - - - 17,712,033 17,712,033
-------------------- ------------ ---------- ----------- ------------ ----------- ------------ ------------
Balance as at 30
September 2018 182,973,924 3,619,443 46,733,689 (9,313,781) 19,570,288 - 119,981,026 180,590,665
-------------------- ------------ ---------- ----------- ------------ ----------- ------------ ------------
(The accompanying notes are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statement of Cash Flows
(All amounts in US $, unless otherwise stated)
Six months
Six months ended ended
30 September 30 September
2019 2018
(Unaudited) (Unaudited)
----------------------------------------- -------------------- ----------------- ------ --------------
(A) Cash flow from operating activities
Profit before tax 26,111,302 23,566,116
Adjustments
Unrealised exchange loss/ (gain) 245,732 (142,884)
Interest income (59,984) (22)
Depreciation 858,756 2,520,327
Changes in operating assets and
liabilities
Inventories 3,018,186 (266,090)
Trade receivables 1,752,243 2,543,379
Trade and other payables 1,136,238 3,171,638
Other current and non-current
assets (38,850) (19,825)
Provisions for decommissioning 100,936 (60,896)
Other liabilities (55,267) 602,026
----------------- ------ --------------
Cash generated from operations 33,069,292 31,913,769
Income taxes paid/refund 595,083 (183,529)
----------------- ------ --------------
Net cash generated from operating
activities 33,664,375 31,730,240
----------------- ------ --------------
(B) Cash flow from investing activities
Purchase of property, plant and
equipment (A) (54,313,241) (92,694,415)
Interest received 59,984 22
Net cash used in investing activities (54,253,257) (92,694,393)
----------------- ------ --------------
(C) Cash flow from financing
activities
Repayment of long-term debt from banks (20,034,000) (18,642,570)
Proceed from Related Party 57,600,000 78,449,952
Payment of interest (10,563,571) (11,464,739)
Net cash generated from/(used in) financing
activities 27,002,429 48,342,643
---------------------------------- --------------
Net change in cash and cash equivalents 6,413,547 (12,621,510)
Cash and cash equivalents at the beginning
of the period 129,152 13,342,498
Effect of exchange rate change on cash
and cash equivalents (245,732) 143,285
---------------------------------- --------------
Cash and cash equivalents at the end of
the period 6,296,967 864,273
---------------------------------- --------------
(A) The purchase of property, plant and equipment above,
includes additions to exploration and evaluation assets amounting
to US$ 3,613,943 (previous period: Nil) 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 $, unless otherwise stated)
1. INTRODUCTION
Indus Gas Limited ("Indus Gas" or "the Company") was
incorporated in the Island of Guernsey on 4 March 2008 pursuant to
an Act of the Royal Court of the Island of Guernsey. The Company
was set up to act as the holding company of iServices Investments
Limited. ("iServices") and Newbury Oil Co. Limited ("Newbury").
iServices and Newbury are companies incorporated in Mauritius and
Cyprus, respectively. iServices was incorporated on 18 June 2003
and Newbury was incorporated on 17 February 2005. The Company was
listed on the Alternative Investment Market (AIM) of the London
Stock Exchange on 6 June 2008. Indus Gas through its wholly owned
subsidiaries iServices and Newbury (hereinafter collectively
referred to as "the Group") is engaged in the business of oil and
gas exploration, development and production.
Focus Energy Limited ("Focus"), an entity incorporated in India,
entered into a Production Sharing Contract ("PSC") with the
Government of India ("GOI") and Oil and Natural Gas Corporation
Limited ("ONGC") on 30 June 1998 for petroleum exploration and
development concession in India known as RJ-ON/06 ("the Block").
Focus is the Operator of the Block. On 13 January 2006, iServices
and Newbury entered into an interest sharing agreement with Focus
and obtained a 65 per cent and 25 per cent share respectively in
the Block. Consequent to this, the Group acquired an aggregate of
90 per cent participating interest in the Block and the balance 10
per cent of participating interest is owned by Focus. The
participating interest explained above is subject to any option
exercised by ONGC in respect of individual wells (already exercised
for SGL field as further explained in Note 3).
2. BASIS OF PREPARATION
The unaudited condensed consolidated interim financial
statements are for the six months ended 30 September 2019 and are
presented in United States Dollar (US$), 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 2019.
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 2019.
These unaudited condensed consolidated interim financial
statements are for the six months ended 30 September 2019 and have
been approved for issue by the Board of Directors.
3. JOINTLY CONTROLLED ASSETS
The Group participates in an unincorporated joint arrangement
with Focus wherein the Group's interest in this arrangement was
classified as jointly controlled assets. Following implementation
of IFRS 11: Joint Arrangements, the Group's interest in this
arrangement is now classified as 'Joint operation'. All rights and
obligations in respect of exploration, development and production
of oil and gas resources under the 'Participating 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.
The block is divided into 3 fields- SGL, SSF and SSG. 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 is
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 2019 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 30 September 31 March 2019
2019 2018
(Unaudited) (Unaudited) (Audited)
-------------------------- ------------------------ ------------------ -----------------
Non-current assets 909,083,224 796,677,681 851,277,557
Current assets 81,230,034 70,678,790 66,426,624
Non-current liabilities 1,707,761 1,520,200 1,606,825
Current liabilities - - -
Expenses (net of finance
income) 1,136,238 3,171,638 4,697,750
Commitments - - -
Further, the SSF and SSG field has also received its declaration
of commerciality on 24(th) November ,2014. Subsequent to the
declaration of commerciality for SSF and SSG discovery, ONGC did
not exercise the option to acquire 30 percent in respect of SSF and
SSG field. The participating interest in SSF and SSG field between
Focus, Iservices and Newbury will remain in ratio of 10 percent, 65
percent and 25 percent respectively for exploration and evaluation
cost and production revenue for SSF and SSG in the block.
4. 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 2019.
5. SEGMENT REPORTING
Operating segments are identified on the basis of internal
reports about components of the Group that are regularly reviewed
by the management 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.
6. 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 at 01 April 2019 -
Additions (A) 3,793,633
Transfer to development assets (B) (3,793,633)
Balance as at 30 September 2019 -
Balance at 01 April 2018 -
Additions (A) -
Transfer to development assets (B) -
Balance as at 30 September 2018 -
Balance as at 01 April 2018 -
Additions (A) 9,569,925
Transfer to development assets (B) (9,569,925)
Balance as at 31 March 2019 -
(A) The above includes borrowing costs of US$ 93,383 for the
period ended 30 September 2019 (30 September 2018: Nil and 31 March
2019: US$ 314,083). The weighted average capitalisation rate on
funds borrowed generally is 6.73 per cent per annum (30 September
2018: 6.86 per cent per annum and 31 March 2019: 6.70 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.
Further, field development plan has been approved by DGH as on
23 June 2017. Accordingly, the cost incurred on the aforesaid
fields from 23 June 2017 are capitalised directly to development
cost.
7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise of the following:
Cost Land Extended Development Production Bunk Vehicles Other Capital Total
well test Assets Assets Houses assets work-in-progress
equipment
---------------------- -------- ---------- ---------------- -------------- ---------- ---------- ----------- ----------------- ---------------
Balance as at
1 April 2019 167,248 4,587,730 678,038,141 212,011,941 5,926,920 4,773,327 1,690,100 1,636,932 908,832,339
Additions - 805 58,639,020 16,994,002 - - 5,140 279,706 75,918,673
Disposals/Transfers - - (16,994,002) - - - - (16,994,002)
---------------------- --------
Balance as at
30
September 2019 167,248 4,588,535 719,683,159 229,005,943 5,926,920 4,773,327 1,695,240 1,916,638 967,757,010
---------------------- -------- ---------- ---------------- -------------- ---------- ---------- ----------- ----------------- ---------------
Accumulated depreciation
Balance as at
1 April 2019 - 2,282,425 - 43,641,189 5,782,117 4,243,213 1,605,838 - 57,554,782
Depreciation for
the period - 91,698 - 858,756 55,121 91,608 21,821 - 1,119,004
---------------------- -------- ---------- ---------------- -------------- ---------- ---------- ----------- ----------------- ---------------
Balance as at
30 September 2019 - 2,374,123 - 44,499,945 5,837,238 4,334,821 1,627,659 - 58,673,786
---------------------- -------- ---------- ---------------- -------------- ---------- ---------- ----------- ----------------- ---------------
Carrying value
As at 30 September
2019 167,248 2,214,412 719,683,159 184,505,998 89,682 438,506 67,581 1,916,638 909,083,224
---------------------- -------- ---------- ---------------- -------------- ---------- ---------- ----------- ----------------- ---------------
Cost Land Extended Development Production Bunk Vehicles Other Capital Total
well test Assets assets houses assets work-in-progress
equipment
--------------------- -------- ---------- ------------- ------------ ---------- ---------- ---------- ----------------- ----------------
Balance as at 1
April 2018 167,248 4,324,033 587,114,867 190,449,112 5,926,920 4,767,563 1,620,590 1,371,441 795,741,774
Additions - 99,143 46,668,030 - - 50,952 88,709 56,750,865
Disposals/Transfers - - - 9,844,031 - - - - -
--------------------- --------
Balance as at 30
September 2018 167,248 4,423,176 638,140,443 200,293,143 5,926,920 4,764,563 1,671,542 1,460,150 852,492,639
--------------------- -------- ---------- ------------- ------------ ---------- ---------- ---------- ----------------- ----------------
Accumulated depreciation
Balance as at 1
April 2018 - 2,105,807 - 39,645,716 5,652,284 4,059,330 1,573,350 - 53,036,487
Depreciation for
the period - 86,608 - 2,520,327 64,916 91,942 14,678 - 2,778,471
--------------------- -------- ---------- ------------- ------------ ---------- ---------- ---------- ----------------- ----------------
Balance as at 30
September 2018 - 2,192,415 - 42,166,043 5,717,200 4,151,272 1,588,028 - 55,814,958
--------------------- -------- ---------- ------------- ------------ ---------- ---------- ---------- ----------------- ----------------
Carrying value
As at 30 September
2018 167,248 2,230,761 638,140,443 158,127,100 209,720 616,291 83,514 1,460,150 796,677,681
--------------------- -------- ---------- ------------- ------------ ---------- ---------- ---------- ----------------- ----------------
Cost Land Extended Development Production Bunk houses Vehicles Other Capital Total
well test assets assets work-in-progress
equipment
--------------------- -------- ---------- ------------- ------------- ------------- -------------- ------------- ----------------- ----------------
Balance as at
1 April 2018 167,248 4,324,033 587,114,867 190,449,112 5,926,920 4,767,563 1,620,590 1,371,441 795,741,774
Additions - 263,697 90,923,274 - 5,764 69,510 265,491 113,090,565
Disposals/Transfers - - - 21,562,829 - - - - -
--------------------- --------
Balance as at
31 March 2019 167,248 4,587,730 678,038,141 212,011,941 5,926,920 4,773,327 1,690,100 1,636,932 908,832,339
--------------------- -------- ---------- ------------- ------------- ------------- -------------- ------------- ----------------- ----------------
Accumulated depreciation
Balance as at
1 April 2018 - 2,105,807 - 39,645,716 5,652,284 4,059,330 1,573,350 - 53,036,487
Depreciation for
the period - 176,618 - 3,995,473 129,833 183,883 32,488 - 4,518,295
--------------------- -------- ---------- ------------- ------------- ------------- -------------- ------------- ----------------- ----------------
Balance as at
31 March 2019 - 2,282,425 - 43,641,189 5,782,117 4,243,213 1,605,838 - 57,554,782
--------------------- -------- ---------- ------------- ------------- ------------- -------------- ------------- ----------------- ----------------
Carrying value
As at 31 March
2019 167,248 2,305,305 678,038,141 168,370,752 144,803 530,114 84,262 1,636,932 851,277,557
--------------------- -------- ---------- ------------- ------------- ------------- -------------- ------------- ----------------- ----------------
Borrowing costs capitalised for the period ended 30 September
2019 amounted to US$ 23,309,017 (30 September 2018: US$ 15,126,753
and 31 March 2019: US$ 41,500,334).
8. LONG TERM DEBT FROM BANKS
Maturity 30 September 30 September 31 March
2019 2018 2019
(Unaudited) (Unaudited) (Audited)
------------------------- ----------- ------------- ------------- ------------
Non-current portion of
long term debt 2021/2024 82,061,620 118,303,124 100,003,278
Current portion of long
term debt from banks 37,276,490 34,140,022 39,171,055
Total 119,338,110 152,443,146 139,174,333
-------------------------------------- ------------- ------------- ------------
Current interest rates are variable and weighted average
interest for the period was 6.73 per cent per annum (30 September
2018: 6.63 per cent per annum and 31 March 2019: 6.70 per cent per
annum). The fair value of the above variable rate borrowings is
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 Bonds
Maturity 30 September 30 September 31 March
2019 2018 2019
(Unaudited) (Unaudited) (Audited)
------------------------------ ---------- ------------- ------------- ------------
Non-current portion of long
term debt 2022 150,184,583 149,877,132 149,718,766
Current portion of long term
debt from banks 3,633,333 3,500,685 3,698,345
Total 153,817,916 153,377,817 153,417,111
------------------------------------------ ------------- ------------- ------------
During the period ended 31 March 2018, the Group has issued USD
150 million notes under the US$ 300 million MTN programme carries
interest rate of 8.1 per cent per annum. These notes are unsecured
notes and are fully repayable at the end of 5 years i.e. December
2022 further interest on these notes will be paid
semi-annually.
9. RELATED PARTY TRANSACTIONS
The related parties for each of the entities in the Group have
been summarised in the table below:
Nature of the relationship Related Party's Name
----------------------------------------- ---------------------------
I. Holding Company Gynia Holdings Ltd.
II. Ultimate Holding Company Multi Asset Holdings Ltd.
(Holding Company of Gynia
Holdings Ltd.)
III.Enterprise over which Key Management Focus Energy Limited
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 2019 and 30
September 2018 are as follows:
Transactions during the period
Particulars Period ended Period ended
30 September 2019 30 September
2018
-------------------------------- ---- ------------------- --------------
Transactions with the Holding
Company
57,600,000 78,449,950
Amount Received 12,146,860 3,949,913
Interest paid
Transactions with KMP
Short term employee benefits 97,900 78,815
Entity over which KMP exercise
control
Share of cost incurred by
the Focus in respect of the
Block 32,180,404 42,383,977
Remittances 50,002,000 90,780,000
-------------------------------------- ------------------- --------------
10. PAYABLE TO RELATED PARTIES
Particulars As at As at As at
30 September 30 September 31 March
2019 2018 2019
-------------------------------- ------------------- ------------------- -------------
Entity over which KMP exercise
control
Payable to Focus Energy
Limited (74,920,236) (62,071,616) (57,098,640)
Payable with the Holding
Company
Payables to Gynia Holding
Limited* 400,835,351 287,040,487 331,088,491
Payable to KMP
Employee obligation 352,534 352,985 352,909
*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.
Amount receivable from Focus
Amount receivable from Focus represents excess amounts paid to
them in respect of the Group's share of contract costs, for its
participating interest in Block RJ-ON/6 .
Liability payable to Gynia
* Borrowings from Gynia Holdings Ltd. carries interest rate of
6.5 per cent per annum compounded annually. Some part of the
outstanding balance (including interest) was made subordinate to
the loans taken from the banks as per the sanction terms of the
banks and, 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
6 and 7.
11. EARNINGS PER 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 2019 30 September
2018
------------------------------------- ------------------- --------------
Profit attributable to shareholders
of Indus Gas Limited, for basic
and dilutive 24,428,327 17,712,033
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
Diluted weighted average number
of shares (used for diluted
profit per share 182,973,924 182,973,924
Basic earnings per share (US$) 0.13* 0.10*
Diluted earnings per share
(US$) 0.13* 0.10*
-------------------------------------- ------------------- --------------
*Rounded off to the nearest two decimal places.
12. COMMITMENTS AND CONTINGENCIES
At 30 September 2019, the Group had capital commitments of US$
Nil (30 September 2018: US$ Nil; 31 March 2019: US$ Nil) in
relation to property, plant & equipment - development/producing
assets, in the Block. The Group has no contingencies as at 30
September 2019 (30 September 2018: Nil; 31 March 2019: Nil).
13. 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 2019.
14. 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 incurred in respect to the SGL field. 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.
15. BASIS OF GOING CONCERN ASSUMPTION
As at 30 September 2019, the Group had current liabilities
amounting to US$ 48,353,400 majorities of which is towards current
portion of borrowings from banks and related parties. As at 30
September 2019, the amounts due for repayment (including interest
payable) within the next 12 months for long term borrowings are US$
40,909,823 which the Group expects to meet from its internal
generation of cash from operations.
Further the group is contemplating to raise funds which will be
used for planned capital expenditures.
16. 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 30 September 31 March
2019 2018 2019
----------------------------------------------- ------------- ------------- ------------
Non-current assets
-Other assets 590 774 605
Current assets
-Trade receivables 25,865,383 15,642,575 27,617,626
-Receivables from related
party 74,920,236 62,071,616 57,098,640
-Cash and cash equivalents 6,296,967 864,273 129,152
----------------------------------------------- ------------- ------------- ------------
Total financial assets 107,083,176 78,579,238 84,846,023
----------------------------------------------- ------------- ------------- ------------
Financial liabilities measured
at amortised cost
Non-current liabilities
- Long term debt from banks 232,246,203 268,180,256 249,722,044
- Payable to related parties 400,835,351 297,040,487 331,088,491
Current liabilities
- Long term debt from banks 40,909,823 37,640,707 42,869,400
- Payable to related parties 352,534 352,985 352,909
* Accrued expenses and other liabilities 2,013,957 1,674,208 2,068,849
----------------------------------------------- ------------- ------------- ----------------
Total financial liability
measured at amortized cost 676,357,868 604,888,643 626,101,693
----------------------------------------------- ------------- ------------- ----------------
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR FDFFMSFUSEDE
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December 31, 2019 02:00 ET (07:00 GMT)
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