TIDMINDI
RNS Number : 0633K
Indus Gas Limited
30 December 2020
Indus Gas Limited and its subsidiaries
("Indus" or the "Company")
Unaudited Condensed Consolidated Interim Financial
Statements for the six month period ended 30 September 2020
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 2020.
Consolidated reported adjusted revenues, operating profit and
profit before tax for the interim period ending 30 September 2020
were US$ 23.21m (US$ 27.69 interim 2019), US$ 21.17m (US$ 26.30m
interim 2019) and US$ 20.92m (US$ 26.11m interim 2019)
respectively. The Company continues to make provision for a
notional deferred tax liability of US$ 1.48m (US$ 1.68m interim
2019), in accordance with IFRS requirements.
The Company continues to realize US$5 per mmbtu in respect of
its existing gas sales contract with GAIL
As reported in our full year results the Petroleum & Natural
Gas Regulatory Board (PNGRB) have re-invited bids for the laying of
a gas pipeline from the gas processing facility for the evacuation
of gas from RJ-ON/6 Block. The transportation tariff proposed in
the first bidding round was very high and the Board is confident
that there is an opportunity to materially lower the transportation
tariff in the next bidding round. Discussions with the relevant
parties are on-going and achieving a successful outcome remains a
key strategic priority for Indus. This will enable natural gas from
RJ-ON/6 block to be delivered to customers through the National
Grid at a fair transportation tariff thereby maximizing value for
shareholders.
Commenting, Peter Cockburn, Chairman of Indus, said:
The health and safety of our employees and all the workers
on-site at the RJ-ON/6 Block remains the Company's top priority.
While the pandemic has presented unprecedented operational
challenge,s the Company remains focused on executing our strategy
to maximize value for all of our stakeholders. The Indian
government's commitment to increase the share of gas in the energy
mix from the current 6.3% to 15% by 2030 will be backed by major
infrastructure investment to develop the gas pipeline network and
connectivity to the national grid throughout the country. The
Company remains very well positioned to play its part in this
transition to an economy powered by a growing proportion of gas. In
addition to the environmental benefits, domestic gas suppliers
provide highly competitive pricing while contributing to the
country's future energy security.
For further information, please contact:
Indus Gas Limited
Peter Cockburn
Jonathan Keeling +44 (0) 20 7877 0022
Arden Partners plc
Ben Cryer / Steve Douglas / Dan Gee-Summons (Corporate Finance)
+44 (0) 20 7614 5900
James Reed-Daunter (Equity Sales)
Unaudited Condensed Consolidated Statement of Financial
Position
(All amounts in US$, unless otherwise stated)
Notes As at As at As at
30 September 30 September 31 March
2020 (Unaudited) 2019 (Unaudited) 2020 (Audited)
Assets
Non-Current Assets
Intangible assets: 6
exploration and
evaluation assets - - -
Property, plant
and equipment 7 1,042,615,854 909,083,224 980,692,787
Tax assets 864,660 2,099,982 2,029,537
Other assets 562 590 550
Total non-current
assets 1,043,481,076 911,183,796 982,722,874
----------------------------- ----------------------------- ----------------
Current assets
Inventories 6,917,524 6,309,798 7,635,420
Prepayments 70,897 49,807 -
Trade and other
receivables 21,210,322 25,865,383 26,359,203
Receivable from
related party 71,130,610 74,920,236 59,558,299
Cash and cash equivalents 1,455,261 6,296,967 284,619
----------------------------- ----------------------------- ----------------
Total current assets 100,784,614 113,442,191 93,837,541
----------------------------- ----------------------------- ----------------
Total assets 1,144,265,690 1,024,625,987 1,076,560,415
----------------------------- ----------------------------- ----------------
LIABILITIES AND
EQUITY
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 (9,313,782) (9,313,782) (9,313,782)
Merger reserve 19,570,288 19,570,288 19,570,288
Retained earnings 208,256,336 164,183,991 188,815,231
----------------------------- ----------------------------- ----------------
Total shareholders'
equity 268,865,974 224,793,629 249,424,869
----------------------------- ----------------------------- ----------------
LIABILITIES
Non-current liabilities
Long term debt,
excluding current
portion 8 216,368,550 232,246,203 224,294,116
Payable to related
parties, excluding
current portion 10 493,183,415 400,835,351 444,282,706
Deferred tax liabilities
(net) 94,988,359 91,125,648 93,504,835
Provision for
decommissioning 1,792,200 1,707,761 1,699,209
Deferred revenue 25,563,995 25,563,995 25,563,995
----------------------------- ----------------------------- ----------------
Total non-current
liabilities 831,896,519 751,478,958 789,344,861
----------------------------- ----------------------------- ----------------
Current liabilities
Current portion
of long term debt 8 34,682,010 40,909,823 29,323,478
Current portion
payable to related
parties 10 345,816 352,534 351,405
Trade and other
payables 3,398,285 2,013,957 3,038,716
Deferred revenue 5,077,086 5,077,086 5,077,086
----------------------------- ----------------------------- ----------------
Total current liabilities 43,503,197 48,353,400 37,790,685
----------------------------- ----------------------------- ----------------
Total liabilities 875,399,716 799,832,358 827,135,546
----------------------------- ----------------------------- ----------------
Total liabilities
and equity 1,144,265,690 1,024,625,987 1,076,560,415
============================= ============================= ================
(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 2020 30 September 2019
(Unaudited) (Unaudited)
------------------------------------- ------ --------------------------------------- ---------------------
Revenue 23,213,326 27,690,196
Cost of sales (1,458,977) (1,089,176)
Administrative expenses (586,360) (303,970)
--------------------------------------- ---------------------
Profit from operations 21,167,989 26,297,050
--------------------------------------- ---------------------
Foreign exchange gain/(loss),
net (452,778) (245,732)
Interest income 209,418 59,984
--------------------------------------- ---------------------
Profit before tax 20,924,629 26,111,302
Income taxes
Deferred tax charge (1,483,524) (1,682,975)
Profit for the period (attributable
to the shareholder of the
Group 19,441,105 24,428,327
--------------------------------------- ---------------------
Total comprehensive income
for the period (attributable
to the shareholders of the
Group) 19,441,105 24,428,327
--------------------------------------- ---------------------
Earnings per share 11
Basic 0.11 0.13
Diluted 0.11 0.13
(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 (Accumulated Total
paid-in translation reserve losses) stockholders'
capital reserve / Retained equity
earnings
----------- ------------- ----------- ------------- ---------------
Number Amount
------------------- ------------ ---------- ----------- ------------- ----------- ------------- ---------------
Balance
as at 1
April 2020 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 188,815,231 249,424,869
------------------- ------------ ---------- ----------- ------------- ----------- ------------- ---------------
Profit
for the
period - - - - - 19,441,105 19,441,105
------------------- ------------ ---------- ----------- ------------- ----------- ------------- ---------------
Total
comprehensive
income
for the
period - - - - - 19,441,105 19,441,105
------------------- ------------ ---------- ----------- ------------- ----------- ------------- ---------------
Balance
as at 30
September
2020 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 208,256,336 268,865,974
------------------- ------------ ---------- ----------- ------------- ----------- ------------- ---------------
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
------------------- ------------ ---------- ----------- ------------- ----------- ------------- ---------------
(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 ended Six months ended
30 September 30 September
2020 (Unaudited) 2019 (Unaudited)
--------------------------------------------- ---------------------------------- -------------------
(A) Cash flow from operating activities
Profit before tax 20,924,629 26,111,302
Adjustments
Unrealised exchange loss/ (gain) (21,692) 245,732
Interest income (209,418) (59,984)
Depreciation 846,919 858,756
Changes in operating assets and liabilities
Inventories 717,897 3,018,186
Trade receivables 5,107,746 1,752,243
Trade and other payables - 1,136,238
Other current and non-current assets (16,289) (38,850)
Provisions for decommissioning 92,991 100,936
Other liabilities 353,980 (55,267)
---------------------------------- -------------------
Cash generated from operations 27,796,763 33,069,292
Income taxes paid/refund 1,164,877 595,083
---------------------------------- -------------------
Net cash generated from operating
activities 28,961,640 33,664,375
---------------------------------- -------------------
(B) Cash flow from investing activities
Purchase of property, plant and equipment
(A) (51,215,789) (54,313,241)
Interest received 209,418 59,984
---------------------------------- -------------------
Net cash used in investing activities (51,006,371) (54,253,257)
(C) Cash flow from financing activities
Repayment of long term debt from banks (3,600,000) (20,034,000)
Proceed from Related Party 34,200,000 57,600,000
Payment of interest (7,392,831) (10,563,571)
---------------------------------- -------------------
Net cash generated from financing
activities 23,207,169 27,002,429
---------------------------------- -------------------
Net change in cash and cash equivalents 1,162,438 6,413,547
Cash and cash equivalents at the beginning
of the period 284,619 129,152
Effect of exchange rate change on
cash and cash equivalents (8,204) (245,732)
---------------------------------- -------------------
Cash and cash equivalents at the end
of the period 1,455,261 6,296,967
---------------------------------- -------------------
(A) The purchase of property, plant and equipment above,
includes additions to exploration and evaluation assets amounting
to US$ 14,534,157 (previous period: 3,613,943) 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 $, unless otherwise stated)
1. INTRODUCTION
Indus Gas Limited ("Indus Gas" or "the Company") was
incorporated in the Island of Guernsey on 4 March 2008 pursuant to
an Act of the Royal Court of the Island of Guernsey. The Company
was set up to act as the holding company of iServices Investments
Limited. ("iServices") and Newbury Oil Co. Limited ("Newbury").
iServices and Newbury are companies incorporated in Mauritius and
Cyprus, respectively. iServices was incorporated on 18 June 2003
and Newbury was incorporated on 17 February 2005. The Company was
listed on the Alternative Investment Market (AIM) of the London
Stock Exchange on 6 June 2008. Indus Gas through its wholly owned
subsidiaries iServices and Newbury (hereinafter collectively
referred to as "the Group") is engaged in the business of oil and
gas exploration, development and production.
Focus Energy Limited ("Focus"), an entity incorporated in India,
entered into a Production Sharing Contract ("PSC") with the
Government of India ("GOI") and Oil and Natural Gas Corporation
Limited ("ONGC") on 30 June 1998 for petroleum exploration and
development concession in India known as RJ-ON/06 ("the Block").
Focus is the Operator of the Block. On 13 January 2006, iServices
and Newbury entered into an interest sharing agreement with Focus
and obtained a 65 per cent and 25 per cent share respectively in
the Block. The balance 10 per cent of participating interest is
owned by Focus. The participating interest explained above is
subject to any option exercised by ONGC in respect of individual
field (already exercised for SGL field as further explained in Note
3).
2. BASIS OF PREPARATION
The unaudited condensed consolidated interim financial
statements are for the six months ended 30 September 2020 and are
presented in United States Dollar (US$) , 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 2020.
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 2020.
These unaudited condensed consolidated interim financial
statements are for the six months ended 30 September 2020 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 2020 is shared between Focus, iServices and Newbury in
the ratio of 10 percent, 65 percent and 25 percent respectively.
ONGC will not be entitled to any participating interest in the
production until the full exploration and development cost is
recovered by other participants.
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 2020 30 September 31 March 2020
2019
(Unaudited) (Unaudited) (Audited)
------------------ ---------------------------------------- ------------------ -------------------------------
Non-current assets 1,042,615,854 909,083,224 980,692,787
Current assets 78,048,134 81,230,034 67,193,720
Non-current
liabilities 1,792,200 1,707,761 1,699,209
Current - - -
liabilities
Expenses (net of
finance
income) 1,632,460 1,136,238 2,815,402
Commitments - - -
Further, the SSF and SSG field has also received its declaration
of commerciality on 24th 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 SSG and
SSF field. The participating interest in SSG and SSF field between
Focus, I services and Newbury will remain in ratio of 10 percent,
65 percent and 25 percent respectively for exploration, evaluation
and development 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 2020.
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 2020 -
Additions (A) 14,778,935
Transfer to development assets (B) ( 14,778,935)
Balance as at 30 September 2020 -
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 as at 01 April 2019 -
Additions (A) 19,826,564
Transfer to development assets (B) (19,826,564)
Balance as at 31 March 2020 -
(A) The above includes borrowing costs of US$ 2,44,778 for the
period ended 30 September 2020 (30 September 2019: US$ 93,383 and
31 March 2020: US$ 645,961). The weighted average capitalisation
rate on funds borrowed generally is 6.74 per cent per annum (30
September 2019: 6.73 per cent per annum and 31 March 2020: 6.74 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 Directorate
General of Hydrocarbons ('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 2020 167,248 4,875,084 778,586,474 241,020,061 7,869,575 4,917,035 1,695,265 1,728,736 1,040,859,478
Additions - 10,829 - - - - 82,130 63,129,825
Disposals/Transfers - - 63,036,866 - - - - - -
--------------------- --------
Balance as at
30
September 2020 167,248 4,885,913 841,623,340 241,020,061 7,869,575 4,917,035 1,695,265 1,810,866 1,103,989,303
--------------------- -------- ---------- ------------ ------------ ---------- ---------- ---------- ----------------- --------------
Accumulated depreciation
Balance as at
1 April 2020 - 2,472,112 - 45,713,555 5,893,195 4,438,082 1,649,747 - 60,166,691
Depreciation for
the period - 99,987 - 846,921 110,734 132,300 16,816 - 1,206,756
--------------------- -------- ---------- ------------ ------------ ---------- ---------- ---------- ----------------- --------------
Balance as at
30 September 2020 - 2,572,099 - 46,560,476 6,003,929 4,570,382 1,666,563 - 61,373,448
--------------------- -------- ---------- ------------ ------------ ---------- ---------- ---------- ----------------- --------------
Carrying value
As at 30 September
2020 167,248 2,313,814 841,623,340 194,459,585 1,865,646 346,653 28,702 1,810,866 1,042,615,854
--------------------- -------- ---------- ------------ ------------ ---------- ---------- ---------- ----------------- --------------
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 - - 5140 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 - 22,82,425 - 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 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 - 287,354 100,548,333 29,008,120 1,013,584 143,708 5,165 1,020,875 132,027,139
Disposals/Transfers - - - 929,071 - - (929,071) -
---------------------- --------
Balance as at
31 March 2020 167,248 4,875,084 778,586,474 241,020,061 7,869,575 4,917,035 1,695,265 1,728,736 1,040,859,478
---------------------- -------- ---------- ------------ ------------ ---------- ---------- ---------- ----------------- --------------
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 - 189,687 - 2,072,366 111,078 194,869 43,909 - 2,611,909
---------------------- -------- ---------- ------------ ------------ ---------- ---------- ---------- ----------------- --------------
Balance as at
31 March 2020 - 2,472,112 - 45,713,555 5,893,195 4,438,082 1,649,747 - 60,166,691
---------------------- -------- ---------- ------------ ------------ ---------- ---------- ---------- ----------------- --------------
Carrying value
As at 31 March
2020 167,248 2,402,972 778,586,474 195,306,506 1,976,380 478,953 45,518 1,728,736 980,692,787
---------------------- -------- ---------- ------------ ------------ ---------- ---------- ---------- ----------------- --------------
Borrowing costs capitalised for the period ended 30 September
2020 amounted to US$ 23,126,508 (30 September 2019: US$ 23,309,017
and 31 March 2020: US$ 45,891,007 ).
8. LONG TERM DEBT FROM BANKS
Maturity 30 September 30 September 31 March
2020 2019 2020
(Unaudited) (Unaudited) (Audited)
------------------------- ----------- ------------- ------------- ------------
Non-current portion of
long term debt 2022/2024 66,330,532 82,061,620 74,400,500
Current portion of long
term debt from banks 31,071,853 37,276,490 25,750,809
Total 97,402,385 119,338,110 100,151,309
-------------------------------------- ------------- ------------- ------------
Current interest rates are variable and weighted average
interest for the period was 6.74 per cent per annum (30 September
2019: 6.73 per cent per annum and 31 March 2020: 6.78 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
2020 2019 2020
(Unaudited) (Unaudited) (Audited)
------------------------------ ---------- ------------- ------------- ------------
Non-current portion of long
term debt 2022 150,038,018 150,184,583 149,893,616
Current portion of long term
debt from banks 3,610,157 3,633,333 3,572,669
Total 153,648,175 153,817,916 153,466,285
------------------------------------------ ------------- ------------- ------------
The Group has issued USD 150 million notes which carries
interest at the rate of 8 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 is 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 2020 and 30
September 2019 are as follows:
Transactions during the period
Particulars Period ended Period ended
30 September 2020 30 September 2019
-------------------------------- ---- ------------------- -------------------
Transactions with the Holding
Company
Amount Received 34,200,000 57,600,000
Interest 14,700,709 12,146,860
Transactions with KMP
Short term employee benefits 112,874 97,900
Entity over which KMP exercise
control
Cost incurred by the Focus
on behalf of the group in
respect of the Block 39,277,690 32,180,404
Remittances 50,850,000 50,002,000
-------------------------------------- ------------------- -------------------
10. PAYABLE/RECEIVABLE TO RELATED PARTIES
Particulars As at As at As at
30 September 30 September 31 March
2020 2019 2020
-------------------------------- ----------------- ----------------- ------------
Entity over which KMP exercise
control
Receivable to Focus Energy
Limited 71,130,610 74,920,236 59,558,299
Payable with the Holding
Company
Payables to Gynia Holding
Limited* 493,183,415 400,835,351 444,282,706
Payable to KMP
Employee obligation 345,816 352,534 351,405
*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 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., The entire outstanding
balance (including interest) was made subordinate to the loans
taken from the banks 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 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 30 September 2019
2020
------------------------------------- -------------- -------------------
Profit attributable to shareholders
of Indus Gas Limited, for
basic and dilutive 19,441,105 24,428,327
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$) 0.11* 0.13*
Diluted earnings per share
(US$) 0.11* 0.13*
-------------------------------------- -------------- -------------------
* Rounded off to the nearest two decimal places.
12. COMMITMENTS AND CONTINGENCIES
At 30 September 2020, the Group had capital commitments of US$
Nil (30 September 2019: US$ Nil; 31 March 2020: US$ Nil) in
relation to property, plant & equipment - development/producing
assets, in the Block. The Group has no contingencies as at 30
September 2020 (30 September 2019: Nil; 31 March 2020: 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 2020.
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 Group has opted to claim the
expenditure in the first year of commercial production. As the
Group has commenced commercial production for SGL field 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.
1 5 . BASIS OF GOING CONCERN ASSUMPTION
As at 30 September 2020, the Group had current liabilities
amounting to US$ 43,503,197 majorities of which is towards current
portion of borrowings from banks and related parties. As at 30
September 2020, the amounts due for repayment (including interest
payable) within the next 12 months for long term borrowings are US$
34,682,010 which the Group expects to meet from its internal
generation of cash from operations.
The Group is contemplating to raise funds which will be used for
planned capital expenditures (including the exploration, appraisal
and development of assets).
Further, there is no significant impact of Covid-19 on the
company's ability to continue as going concern considering that the
entity is in the business of essential services
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 categorized
as follows:
30 September 30 September 31 March
2020 2019 2020
----------------------------------------------- ------------- ------------- --------------
Non-current assets
Loans
- Security deposits 562 590 550
Current assets
- Trade receivables 21,210,322 25,865,383 26,318,068
- Cash and cash equivalents 1,455,261 6,296,967 284,619
----------------------------------------------- ------------- ------------- --------------
Total financial assets 22,666,145 32,162,940 26,603,237
----------------------------------------------- ------------- ------------- --------------
Financial liabilities measured
at amortised cost
Non-current liabilities
- Long term debt from banks 216,368,550 232,246,203 224,294,116
- Payable to related parties 493,183,415 400,835,351 444,282,706
Current liabilities
- Current portion of long
term debt 34,682,010 40,909,823 29,323,478
- Current portion of payable
to related parties 345,816 352,534 351,405
* Accrued expenses and other liabilities 3,398,285 2,013,957 2,988,063
----------------------------------------------- ------------- ------------- --------------
Total financial liability
measured at amortized cost 747,978,076 676,357,868 701,290,421
----------------------------------------------- ------------- ------------- --------------
The fair value of the financial assets and liabilities described
above closely approximates their carrying value on the statement of
financial position dates.
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END
IR BKLLLBLLXFBL
(END) Dow Jones Newswires
December 30, 2020 02:00 ET (07:00 GMT)
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