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5
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Summary of significant accounting policies
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a)
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Basis of preparation
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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.
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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.
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Going Concern
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1. In response to
the recent global challenges, including the Covid-19 pandemic and
the war in Ukraine, which have led to significant increases in
commodity prices and inflation, particularly impacting coal prices,
the Group has proactively performed sensitivity analysis on the
assumptions used for business projections and based on current
estimates expects the carrying amount of these assets will be
recovered and no material impact on the financial results
inter-alia including the carrying value of various current and
non-current assets are expected to arise for the year ended 31
March 2025.
2. Despite the
volatility in commodity prices and inflationary pressures, the
Group's financial health remains resilient.
3. The Group has
implemented robust risk management strategies, including cost
control measures and operational efficiencies, which have helped in
managing the increased financial pressures.
4. The Group's
ability to adapt to changing market conditions and rapidly
implement strategic adjustments has been crucial in sustaining the
Group's performance through these challenging times.
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b)
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Basis of consolidation
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The consolidated financial
statements include the assets, liabilities and results of the
operation of the Company and all of its subsidiaries as of 31 March
2024. All subsidiaries have a reporting date of 31
March.
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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.
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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.
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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.
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c)
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Investments in associates and joint
ventures
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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.
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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.
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d)
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List of subsidiaries, joint ventures, and
associates
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Details of the Group's
subsidiaries and joint ventures, which are consolidated into the
Group's consolidated financial statements, are as
follows:
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i) Subsidiaries
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Subsidiaries
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Immediate parent
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Country of
incorporation
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% Voting
Right
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% Economic
interest
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September
2024
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March 2024
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September2024
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March 2024
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Caromia Holdings limited
('CHL')
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OPGPV
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Cyprus
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100
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100
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100
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100
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Gita Power and Infrastructure
Private Limited, ('GPIPL')
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CHL
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India
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97.58
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97.73
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97.58
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97.73
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OPG Power Generation Private
Limited ('OPGPG')
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GPIPL
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India
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99.82
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99.82
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99.82
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99.82
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Samriddhi Surya Vidyut Private
Limited
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OPGPG
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India
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100.00
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100.00
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100.00
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100.00
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Powergen Resources Pte
Ltd
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OPGPV
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Singapore
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100.00
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100.00
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100.00
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100.00
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e)
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Foreign currency translation
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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.
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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.
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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.
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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 2024: 112.16 (2024: 105.28) and the average rate for the
year ended 30 September 2024: 107.13 (2024: 104.06).
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f)
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Revenue recognition
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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 75
days.
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Revenue
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Revenue from providing electricity
to captive power shareholders and sales to other customers is
recognised on the basis of billing cycle under the contractual
arrangement with the captive power shareholders & 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.
For LTOA and STOA, revenue is
earned at a point in time of joint meter reading by both buyer and
seller for each billing month.
For IEX, revenue is earned on
daily basis of supply based on the bid and allotted quantum which
gets reconciled at a point in time of meter reading for each
billing month.
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Interest and
dividend
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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.
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g)
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Operating expenses
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Operating expenses are recognised
in the statement of profit or loss upon utilisation of the service
or as incurred.
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h)
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Taxes
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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.
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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.
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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.
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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.
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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.
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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.
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i)
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Financial assets
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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.
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Financial assets are classified as
financial assets measured at amortized cost, financial assets
measured at fair value through other comprehensive income (FVOCI)
and financial assets measured at fair value through profit and loss
(FVPL) based on the business model and the characteristics of the
cash flows. If a financial asset is held for the purpose of
collecting contractual cash flows and the cash flows of the
financial asset represent exclusively interest and principal
payments, then the financial asset is measured at amortized cost. A
financial asset is measured at fair value through other
comprehensive income (FVOCI) if it is used both to collect
contractual cash flows and for sales purposes and the cash flows of
the financial asset consist exclusively of interest and principal
payments. Unrealized gains and losses from financial assets
measured at fair value through other comprehensive income (FVOCI),
net of related deferred taxes, are reported as a component of
equity (other comprehensive income) until realized. Realized gains
and losses are determined by analyzing each transaction
individually. Debt instruments that do not exclusively serve to
collect contractual cash flows or to both generate contractual cash
flows and sales revenue, or whose cash flows do not exclusively
consist of interest and principal payments are measured at fair
value through profit and loss (FVPL). For equity instruments that
are held for trading purposes the group has uniformly exercised the
option of recognizing changes in fair value through profit or loss
(FVPL). Refer to note 30 "Summary of financial assets and
liabilities by category and their fair values".
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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.
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j)
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Financial liabilities
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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'.
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k)
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Fair value of financial instruments
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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.
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l)
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Property, plant and equipment
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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.
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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:
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Nature of asset
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Useful life
(years)
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Buildings
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40
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Power stations
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40
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Other plant and
equipment
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3-10
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Vehicles
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5-11
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Assets in the course of
construction are stated at cost and not depreciated until
commissioned.
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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 de-recognition 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.
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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.
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m)
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Intangible assets
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Acquired software
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Acquired computer software
licences are capitalised on the basis of the costs incurred to
acquire and install the specific software.
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Subsequent measurement
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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.
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n)
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Leases
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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)
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Subsequent to initial measurement
lease liabilities increase as a result of interest charged at a
constant rate on the balance outstanding and are reduced for lease
payments made. Right-of-use assets are amortised on a straight-line
basis over the remaining term of the lease or over the remaining
economic life of the asset if, rarely, this is judged to be shorter
than the lease term. When the group revises its estimate of the
term of any lease (because, for example, it re-assesses the
probability of a lessee extension or termination option being
exercised), it adjusts the carrying amount of the lease liability
to reflect the payments to make over the revised term, which are
discounted using a revised discount rate. The carrying value of
lease liabilities is similarly revised when the variable element of
future lease payments dependent on a rate or index is revised,
except the discount rate remains unchanged. In both cases an
equivalent adjustment is made to the carrying value of the
right-of-use asset, with the revised carrying amount being
amortised over the remaining (revised) lease term. If the carrying
amount of the right-of-use asset is adjusted to zero, any further
reduction is recognised in profit or loss.
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o)
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Borrowing costs
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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.
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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.
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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.
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p)
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Impairment of non-financial assets
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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.
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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.
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q)
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Non-current Assets Held for Sale and Discontinued
Operations
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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.
In case of reclassification,
previously recognised impairment loss is reversed only if there has
been a change in the assumptions used to determine the investment's
recoverable amount since the last impairment loss was recognised.
The reversal is limited so that the carrying amount of the
investment does not exceed its recoverable amount, nor exceed the
carrying amount that would have been determined, had no impairment
loss been recognised for the investments in prior years. Such
reversal is recognised in the profit or loss. Once the Company
ceases to classify a component as assets held for sale, the results
of that component previously presented in discontinued operations
will be reclassified and included in income from continuing
operation for the period presented.
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r)
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Cash and cash equivalents
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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.
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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.
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s)
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Inventories
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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.
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t)
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Earnings per share
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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.
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u)
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Other provisions and contingent liabilities
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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.
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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.
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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.
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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.
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v)
|
Share based payments
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|
|
|
The Group operates equity-settled
share-based remuneration plans for its employees.
|
|
|
|
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.
|
|
|
|
Employees Benefit
Trust
|
|
|
|
|
The Group has established an
Employees Benefit Trust (hereinafter 'the EBT') for investments in
the Company's shares for employee benefit schemes. IOMA Fiduciary
in the Isle of Man have been appointed as Trustees of the EBT with
full discretion invested in the Trustee, independent of the
company, in the matter of share purchases. As at present, no
investments have been made by the Trustee nor any funds advanced by
the Company to the EBT. The Company is yet to formulate any
employee benefit schemes or to make awards thereunder.
|
|
|
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 FY24 there is only
one operating segment thermal power. 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.
|
|
|
|
Recoverability of deferred
tax assets
|
|
|
|
|
The recognition of deferred tax
assets requires assessment of future taxable profit (see note
5(h)). Deferred tax assets are recognised to the extent that it is
probable that they will be able to be utilised against future
taxable income.
|
|
|
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:
|
|
|
|
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.
|
|
|
|
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. The management considers
impairment upon there being evidence that there might be an
impairment, such as a lower market capitalization of the group or a
downturn in results.
|
|
|
|
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 from discontinued operations
|
|
|
|
Non-current assets held for sale
and Profit from discontinued operations consists of:
|
|
|
|
|
Assets Held for
Sale
|
Liabilities classified as
held for sale
|
Profit from discontinued
operations
|
|
|
|
|
At 30 September
2024
|
At 31 March
2024
|
At 30 September
2024
|
At 31 March
2024
|
For Sep
24
|
For FY
23
|
|
|
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Non-current Assets held-for-sale and discontinued
operations
|
|
|
|
|
|
(a) Assets of disposal group classified as
held-for-sale
|
As at 30th September
2024
|
As at 31st March
2024
|
|
|
|
Property, plant and
equipment
|
-
|
-
|
|
|
|
Trade and other
receivables
|
-
|
-
|
|
|
|
Other short-term assets
|
-
|
-
|
|
|
|
Restricted cash
|
-
|
-
|
|
|
|
Cash and cash
equivalents
|
-
|
-
|
|
|
|
Investment in associates
classified as held for sale
|
-
|
-
|
|
|
|
Total
|
-
|
-
|
|
|
|
|
|
|
|
|
|
(b) Analysis of the results of discontinued operations is as
follows:
|
For Sep 24
|
For FY 24
|
|
|
|
Revenue
|
-
|
-
|
|
|
|
Operating profit before
impairments
|
-
|
-
|
|
|
|
Other Expenses
|
-
|
|
|
|
|
Finance income
|
-
|
-
|
|
|
|
Finance cost
|
-
|
-
|
|
|
|
Current Tax
|
-
|
-
|
|
|
|
Deferred tax
|
-
|
-
|
|
|
|
Share of Profit/ (Loss) on fair
value of investments, in Solar entities
|
-
|
-
|
|
|
|
Gain on deconsolidation of Solar
entities
|
-
|
-
|
|
|
|
Profit / (Loss) from Solar operations
|
-
|
-
|
|
|
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 FY24 there is only
one operating segment thermal power. 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 customer exceeding 10% of total sales revenue amounts to
£12,018,995 from TANGEDCO & £8,887,932 from IEX &
£19,731,348 and £45,934,882 from STOA sales to Andhra Pradesh
Discom and Haryana Dsicom respectively (2024:
£157,896,815.90).
Segmental information
disclosure
|
|
|
|
|
Continuing
operations
|
Discontinued operations
|
|
|
|
|
Thermal
|
Solar
|
|
|
|
Segment Revenue
|
Sep 24
|
FY24
|
FY24
|
FY23
|
|
|
|
Sales
|
86,881,668
|
155,687,252
|
-
|
-
|
|
|
|
Total
|
86,881,668
|
155,687,252
|
-
|
-
|
|
|
|
Other Operating income
|
301,317
|
3,606,866
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
impairment
|
(2,842,221)
|
(5,521,962)
|
-
|
-
|
|
|
|
|
|
|
-
|
-
|
|
|
|
Profit from operation
|
5,952,379
|
11,158,692
|
-
|
-
|
|
|
|
Finance Income
|
1,253,317
|
1,967,022
|
-
|
-
|
|
|
|
Finance Cost
|
(2,950,888)
|
(5,571,272)
|
-
|
-
|
|
|
|
Tax expenses
|
(1,641,621)
|
(3,443,893)
|
-
|
-
|
|
|
|
Reversal of FV Impairment of
associates
|
-
|
-
|
-
|
-
|
|
|
|
Share of Profit, (Loss) on fair
value of investments, in Solar entities
|
-
|
-
|
-
|
-
|
|
|
|
Profit / (loss) for the
year
|
2,613,187
|
4,110,550
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
257,521,648
|
272,935,916
|
-
|
-
|
|
|
|
Liabilities
|
94,104,466
|
102,457,236
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
9
|
Costs of inventories and employee benefit expenses included
in the consolidated statements of comprehensive
income
|
|
|
a)
|
Cost of fuel
|
|
|
|
|
30 Sep
2024
|
31 March
2024
|
|
|
|
Included in cost of revenue:
|
|
|
|
|
|
Cost of fuel consumed
|
67,021,527
|
124,371,190
|
|
|
|
Depreciation
|
-
|
-
|
|
|
|
Other direct costs
|
2,188,032
|
3,646,344
|
|
|
|
Total
|
69,209,559
|
128,017,534
|
|
|
b)
|
Employee benefit expenses forming
part of general and administrative expenses are as
follows:
|
|
|
|
|
|
|
30 Sep
2024
|
31 March
2024
|
|
|
|
Salaries and wages
|
1,404,351
|
2,492,231
|
|
|
|
Employee benefit costs
*
|
134,099
|
487,530
|
|
|
|
Long Term Incentive Plan (Note
22)
|
-
|
-
|
|
|
|
Total
|
1,538,450
|
2,979,761
|
|
|
c)
|
Foreign exchange movements
(realised and unrealised) included in the Finance costs is as
follows:
|
|
|
|
|
|
|
31 Sep
2024
|
31 March
2024
|
|
|
|
Foreign exchange realised -
loss/(gain)
|
36,010
|
75,627
|
|
|
|
Foreign exchange unrealised-
loss/(gain)
|
(30,426)
|
170,950
|
|
|
|
Total
|
5,584
|
246,577
|
|
|
|
|
|
|
|
|
|
Auditor's remuneration for audit
services amounting to £46,000 (2023: £74,000) is included in
general and administrative expenses and excludes travel
reimbursements.
|
|
|
10
|
Other operating income and expenses
|
|
|
|
|
|
|
a)
|
Other operating income
|
|
|
|
|
30 Sep
2024
|
31 March
2024
|
|
|
|
Surcharge TANGEDCO
|
239,943
|
2,977,906
|
|
|
|
Margin on Trading of
Power
|
-
|
628,960
|
|
|
|
Total
|
61,374
|
3,606,866
|
|
|
|
Other operating income represents
contractual claims payments from company's customers under the
power purchase agreements which were accumulated over several
periods.
|
|
|
b)
|
Other Income
|
|
|
|
|
30 Sep
2024
|
31 March
2024
|
|
|
|
Provisions no longer required
written back
|
509,470
|
-
|
|
|
|
Sale of coal (Margin)
|
133,342
|
338,390
|
|
|
|
Sale of fly ash
|
88,003
|
123,996
|
|
|
|
Power trading commission and other
services
|
-
|
-
|
|
|
|
Profit on disposal of financial
instruments*
|
550,003
|
(297,408)
|
|
|
|
Others
|
3,636
|
4,559
|
|
|
|
Total
|
1,284,455
|
169,536
|
|
|
|
*Profits on disposal of financial
instruments unrealised gain/loss on mark to market rate as on
reporting date of mutual funds held during the year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |