TIDMINDI
RNS Number : 6757K
Indus Gas Limited
23 December 2022
Indus Gas Limited and its subsidiaries
("Indus" or the "Company")
Unaudited Condensed Consolidated Interim Financial
Statements for the six-month period ended 30 September 2022
Indus Gas Limited (AIM: INDI), an oil & gas exploration and
development company with assets in India, is pleased to report its
interim results for the six-month period ending 30 September
2022.
Consolidated reported adjusted revenues, operating profit and
profit before tax for the interim period ending 30 September 2022
were US$ 27.42m (US$ 27.11m interim 2021), US$ 23.13m (US$ 22.97m
interim 2021) and US$ 22.68m (US$ 22.97m interim 2021)
respectively.
The Company has continued to make provision for a notional
deferred tax liability of US$ 9.91m (US$ 6.09m interim 2021), in
accordance with IFRS requirements.
The Company is currently producing from the SGL field as well as
the SSF & SSG fields, with production in line with current year
projections. The Company had earlier received approval from the
Directorate General of Hydrocarbons ("DGH") and government for the
integrated Field Development Plan ("FDP") of SSG (Pariwar) &
SSF (B&B) discoveries. All gas production from the three fields
is currently being sold to GAIL per the contract below. At the same
time, the Petroleum & Natural Gas Regulatory Board (PNGRB) are
undertaking consultations for deciding on the pipeline route for
evacuation of the gas from the SSG and SSF fields.
The gas price for RJ-ON/6 block effective from 1 April 2022 has
been agreed to be as per the domestic gas price on Gross Calorific
Value (GCV) basis as notified by petroleum planning and analysis
cell of the Government of India. The floor price will continue to
US$ 4.5146 per MMBTU on GCV being the existing price of US$ 5 per
MMBTU on Net Calorific Value (NCV) basis. The gas price revision
has resulted in the gas price being revised to US$ 6.1 per MMBTU on
GCV basis from 1 April 2022 to 30 September 2022.
Jonathan Keeling, Chairman of Indus Gas, commented:
"The Company welcomed the Gas Price revision, which was
effective from April 2022. The production from the block resulted
in Company achieving stable revenues and another profitable half
year . Post period end, the Company was pleased to achieve a
partial refinancing of its medium term notes. "
For further information, please contact:
Indus Gas Limited
+44 (0) 20 8133
Jonathan Keeling 3375
Strand Hanson Limited (Nominated and Financial
Adviser)
+44 (0) 20 7409
Ritchie Balmer, Rory Murphy 3494
Arden Partners plc (Broker)
+44 (0) 20 7614
Equity Sales: James Reed-Daunter 5900
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
2022 2021 2022
(Unaudited) (Unaudited) (Audited)
ASSETS
Non-current assets
Property, plant and equipment 6 1,189,884,758 1,097,162,179 1,149,223,672
Tax assets 1,431,777 979,498 1,213,986
Other assets 549 567 549
Total non-current assets 1,191,317,084 1,098,142,244 1,150,438,207
-------------- --------------------------- ---------------
Current assets
Inventories 6,516,961 7,074,881 9,459,753
Prepayments 3,715,982 617,930 -
Trade and other receivables 7,081,049 12,010,459 20,105,840
Receivable from related party 108,775,152 126,453,576 120,408,124
Cash and cash equivalents 4,122,096 4,877,577 4,452,010
Total current assets 130,211,240 151,034,423 154,425,727
-------------- --------------------------- ---------------
Total assets 1,321,528,324 1,249,176,667 1,304,863,934
============== =========================== ===============
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 264,787,793 233,611,037 251,953,802
Total shareholders ' equity 325,397,431 294,220,675 312,563,440
-------------- --------------------------- ---------------
LIABILITIES
Non-current liabilities
Long term debt, excluding
current portion 7* 27,200,889 199,541,249 39,239,735
Payable to related parties,
excluding current portion 09 627,488,125 583,933,798 625,442,503
Deferred tax liabilities
(net) 130,350,919 115,751,586 120,398,433
Provision for decommissioning 1,920,701 1,968,008 1,987,325
Deferred revenue 25,563,995 25,563,995 25,563,995
Total non-current liabilities 812,524,629 926,758,636 812,631,991
------------------------- ---------------------------- --------------
Current liabilities
Current portion of long-term
debt 7* 176,433,130 20,841,609 172,747,343
Current portion payable to
related parties 09 9225 345,698 345,105
Trade and other payables 2,086,823 1,932,963 1,498,969
Deferred revenue 5,077,086 5,077,086 5,077,086
Total current liabilities 183,606,264 28,197,356 179,668,503
------------------------- ---------------------------- --------------
Total liabilities 996,130,893 954,955,992 992,300,494
------------------------- ---------------------------- --------------
Total liabilities and equity 1,321,528,324 1,249,176,667 1,304,863,934
========================= ============================ ==============
(The accompanying notes are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements)
* USD 150 million Senior Unsecured Notes due in December 2022
have been exchanged with New Senior Unsecured Notes due in 2027.
Thus, the current portion of long-term debt has been reduced by USD
150 million and long term debt excluding current portion has been
increased by USD 150 million as of 1(st) December 2022 as a result
of this exchange.
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 2022 2021
Unaudited Unaudited
----------------------------------- ------ ---------------------- --------------------
Revenue 27,416,956 27,114,413
Cost of sales (4,282,747) (3,777,098)
Administrative expenses (405,865) (372,083)
Profit from operations 22,728,344 22,965,232
---------------------- --------------------
Foreign exchange gain/(loss), net 58,132 461
Interest income - -
Profit before tax 22,786,476 22,965,693
---------------------- --------------------
Income taxes
Provision for Deferred tax charge (9,952,486) (6,098,274)
---------------------- --------------------
Profit for the period (attributable
to the shareholder of the Group) 12,833,991 16,867,419
----------- -------------
Total comprehensive income for
the period (attributable to the
shareholders of the Group) 12,833,991 16,867,419
----------- -------------
Earnings per share 10
Basic 0.07 0.09
Diluted 0.07 0.09
(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
Number Amount paid-in translation reserve losses)/ stockholders'
capital reserve Retained equity
earnings
Balance as at
1
April 2022 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 251,953,803 312,563,441
--------------- ------------ ---------- ----------- ------------ ----------- ---------------- -----------------
Profit for the
period - - - - - 12,833,990 12,833,990
--------------- ------------ ---------- ----------- ------------ ----------- ---------------- ---------------
Total
comprehensive
income for
the period - - - - - 12,833,990 12,833,990
--------------- ------------ ---------- ----------- ------------ ----------- ---------------- -----------------
Balance as at
30
September
2022 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 264,787,793 325,397,431
--------------- ------------ ---------- ----------- ------------ ----------- ---------------- -----------------
Balance as at
1
April 2021 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 216,743,618 277,353,256
--------------- ------------ ---------- ----------- ------------ ----------- ---------------- -----------------
Profit for the
period - - - - - 16,867,419 16,867,419
--------------- ------------ ---------- ----------- ------------ ----------- ---------------- -----------------
Total
comprehensive
income for
the period - - - - - 16,867,419 16,867,419
--------------- ------------ ---------- ----------- ------------ ----------- ---------------- -----------------
Balance as at
30
September
2021 182,973,924 3,619,443 46,733,689 (9,313,782) 19,570,288 233,611,037 294,220,675
--------------- ------------ ---------- ----------- ------------ ----------- ---------------- -----------------
(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
2022 2021
(Unaudited) (Unaudited)
---------------------------------- ----------------- ------------------------------------- -----------------------------------
(A) Cash flow from operating
activities
Profit before tax 22,786,476 22,965,693
Adjustments
Unrealised exchange loss/ (gain) (58,132) (461)
Interest income - -
Depreciation 3,697,287 3,388,578
Changes in operating assets and
liabilities
Inventories 2,942,792 1,463,383
Trade receivables 11,254,024 20,898,031
Trade and other payables 3,996,329 3,498,515
Other current and non-current
assets (1,945,215) (572,339)
Provisions for decommissioning (66,625) 55,577
Other liabilities 251,975 (1,955,840)
------------------------------------- -----------------------------------
Cash generated from operations 42,858,911 49,741,134
Income taxes paid/refund (217,791) (63,168)
------------------------------------- -----------------------------------
Net cash generated from operating
activities 42,641,120 49,677,966
------------------------------------- -----------------------------------
(B) Cash flow from investing
activities
Purchase of property, plant and
equipment (A) (8,647,153) (17,366,652)
Interest received - -
Net cash used in investing
activities (8,647,153) (17,366,652)
------------------------------------- -----------------------------------
(C) Cash flow from
financing
activities
Repayment of long-term debt from banks (8,568,000) (12,168,000)
Proceed from Related Party (18,250,000) (8,575,000)
Payment of interest (7,564,013) (7,687,963)
Net cash generated from financing activities (34,382,013) (28,429,963)
---------------------------- ---------------------------------------
Net change in cash and cash equivalents (388,046) 3,881,352
Cash and cash equivalents at the beginning
of the period 4,452,010 995,765
Effect of exchange rate change on cash
and cash equivalents 58,132 461
---------------------------- ---------------------------------------
Cash and cash equivalents at the end
of the period 4,122,096 4,877,577
---------------------------- ---------------------------------------
(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 $, unless otherwise stated)
1. INTRODUCTION
Indus Gas Limited ("Indus Gas" or "the Company") was
incorporated in the Island of Guernsey on 4 March 2008 pursuant to
an Act of the Royal Court of the Island of Guernsey. The Company
was set up to act as the holding company of iServices Investments
Limited. ("iServices") and Newbury Oil Co. Limited ("Newbury").
iServices and Newbury are companies incorporated in Mauritius and
Cyprus, respectively. iServices was incorporated on 18 June 2003
and Newbury was incorporated on 17 February 2005. The Company was
listed on the AIM of the London Stock Exchange on 6 June 2008.
Indus Gas, through its wholly owned subsidiaries iServices and
Newbury (together the "Group"), is engaged in the business of oil
and gas exploration, development and production.
Focus Energy Limited ("Focus"), an entity incorporated in India,
entered into a Production Sharing Contract ("PSC") with the
Government of India ("GOI") and Oil and Natural Gas Corporation
Limited ("ONGC") on 30 June 1998 for petroleum exploration and
development concession in India known as RJ-ON/06 ("the Block").
Focus is the Operator of the Block. On 13 January 2006, iServices
and Newbury entered into an interest sharing agreement with Focus
and obtained a 65 per cent and 25 per cent share respectively in
the Block. The balance 10 per cent of participating interest is
owned by Focus. The participating interest explained above is
subject to any option to acquire 30 per cent Participating Interest
exercised by ONGC in respect of discoveries. ONGC has already
exercised 30 per cent PI option for SGL field (as further explained
in Note 3).
2. BASIS OF PREPARATION
The unaudited condensed consolidated interim financial
statements are for the six months ended 30 September 2022 and are
presented in United States Dollar (US$) , 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 2022.
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 2022.
These unaudited condensed consolidated interim financial
statements are for the six months ended 30 September 2022 and have
been approved for issue by the Board of Directors.-
3 . JOINTLY CONTROLLED ASSETS
As explained above, the Group through its subsidiaries iServices
and Newbury has an "Interest sharing arrangement" with Focus in the
block, which under IFRS 11 Joint Arrangements, is classified as a
'Joint operation'. All rights and obligations in respect of
exploration, development and production of oil and gas resources
under the 'Interest sharing agreement' are shared between Focus,
iServices and Newbury in the ratio of 10 per cent, 65 per cent and
25 per cent respectively.
Under the PSC, the GOI, through ONGC has 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, SSG and SSF.
The SGL field received its declaration of commercial discovery
on 21 January 2008. Subsequent to the declaration of commercial
discovery in SGL field, ONGC 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.
However, 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 in order to be
entitled to their 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.
On the basis of the above, gas production for the period ended
30(th) September 2022 continues to be 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 30 September 31 March
2022 2021 2022
(Unaudited) (Unaudited) (Audited)
--------------------------------- --------------------------------- ---------------------- ----------------------
Non-current assets 1,189,884,758 1,097,162,176 1,149,223,672
Current assets 115,292,113 133,528,427 129,867,877
Non-current liabilities 1,920,700 1,968,004 1,987,325
Current liabilities - - -
Expenses (net of finance
income) 3,996,329 3,498,515 6,702,159
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, iServices 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 2022.
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. 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 2022 167,248 5,172,729 865,416,249 329,916,943 7,869,575 4,917,035 1,695,265 2,978,870 1,218,133,914
Additions - 162,004 44,341,029 66,383,013 - 46,888 - 26,293 110,959,227
Disposals/Transfers - (66,383,013) - - - (66,383,013)
---------------------- --------
Balance as at
30
September 2022 167,248 5,334,733 843,374,265 396,299,956 7,869,575 4,963,923 1,695,265 3,005,163 1,262,710,128
---------------------- -------- ---------- -------------- ------------ ---------- ---------- ---------- ----------------- --------------
Accumulated depreciation
Balance as at
1 April 2022 - 2,898,821 - 53,213,090 6,217,173 4,897,781 1,683,377 - 68,910,242
Depreciation for
the period - 108,295 - 3,697,139 97,770 10,007 1,917 - 3,915,128
---------------------- -------- ---------- -------------- ------------ ---------- ---------- ---------- ----------------- --------------
Balance as at
30 September 2022 - 3,007,116 - 56,910,229 6,314,943 4,907,788 1,685,294 - 72,825,370
---------------------- -------- ---------- -------------- ------------ ---------- ---------- ---------- ----------------- --------------
Carrying value
As at 30 September
2022 167,248 2,327,617 843,374,265 339,389,727 1,554,632 56,135 9,971 3,005,163 1,189,884,758
---------------------- -------- ---------- -------------- ------------ ---------- ---------- ---------- ----------------- --------------
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 2021 167,248 4,914,434 862,379,376 258,573,672 7,869,575 4,917,035 1,695,265 2,894,389 1,143,410,994
111,135,407
Additions - 258,301 19,711,928 91,111,073 - - - 54,105 (91,111,073)
Disposals/Transfers - (91,111,073) - - - -
---------------------- --------
Balance as at
30
September 2021 167,248 5,172,735 790,980,231 349,684,745 7,869,575 4,917,035 1,695,265 2,948,494 1,163,435,328
---------------------- -------- ---------- ------------------- -------------- ---------- ---------- ---------- ----------------- --------------
Accumulated depreciation
Balance as at
1 April 2021 - 2,673,660 - 47,378,610 6,018,596 4,702,682 1,683,377 - 62,456,925
Depreciation for
the period - 100,223 - 3,500,156 100,811 113,117 1,917 - 3,816,224
---------------------- -------- ---------- ------------------- -------------- ---------- ---------- ---------- ----------------- --------------
Balance as at
30 September 2021 - 2,773,883 - 50,878,766 6,119,407 4,815,799 1,685,294 - 66,273,149
---------------------- -------- ---------- ------------------- -------------- ---------- ---------- ---------- ----------------- --------------
Carrying value
As at 30 September
2021 167,248 2,398,852 790,980,231 298,805,979 1,750,168 101,236 9,971 2,948,494 1,097,162,179
---------------------- -------- ---------- ------------------- -------------- ---------- ---------- ---------- ----------------- --------------
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 2021 167,248 4,914,428 862,379,376 258,573,672 7,869,575 4,917,035 1,695,265 2,894,389 1,143,410,989
Additions - 258,301 74,380,143 - - - - 84,481 74,722,925
Disposals/Transfers - - (71,343,270) 71,343,270 - - - - -
--------------------- --------
Balance as at
31 March 2022 167,248 5,172,729 865,416,249 329,916,943 7,869,575 4,917,035 1,695,265 2,978,870 1,218,133,914
--------------------- -------- ---------- -------------- ------------- ---------- ---------- ---------- ----------------- --------------
Accumulated depreciation
Balance as at
1 April 2021 - 2,673,660 - 47,378,609 6,018,596 4,702,682 1,683,377 - 62,456,924
Depreciation for
the period - 225,161 - 5,834,481 198,577 195,099 - - 6,453,318
--------------------- -------- ---------- -------------- ------------- ---------- ---------- ---------- ----------------- --------------
Balance as at
31 March 2022 - 2,898,821 - 53,213,090 6,217,173 4,897,781 1,683,377 - 68,910,242
---------------------- -------- ---------- -------------- ------------- ---------- ---------- ---------- ----------------- --------------
Carrying value
As at 31 March
2022 167,248 2,273,908 865,416,249 276,703,853 1,652,402 19,254 11,888 2,978,870 1,149,223,672
--------------------- -------- ---------- -------------- ------------- ---------- ---------- ---------- ----------------- --------------
Borrowing costs capitalised for the period ended 30 September
2022 amounted to US$ 28,074,577 (30 September 2021: US$ 7,788,003
and 31 March 2022: US$ 53,932,526 ).
7. LONG TERM DEBT FROM BANKS
Maturity 30 September 30 September 31 March
2022 2021 2022
(Unaudited) (Unaudited) (Audited)
------------------------------ ----------- -------------- -------------- ------------
Non-current portion of
long-term debt 2024 *27,200,889 49,507,554 39,239,735
Current portion of long-term
debt from banks 22,665,893 17,269,609 19,079,585
Total 49,866,782 66,777,163 58,319,320
------------------------------------------- -------------- -------------- ------------
Current interest rates are variable and weighted average
interest for the period was 6.75 per cent per annum (30 September
2021: 6.70 per cent per annum and 31 March 2022: 6.76 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
2022 2021 2022
(Unaudited) (Unaudited) (Audited)
---------------------------------- ----------- -------------- -------------- ------------
Non-current portion of long-term 2023 - 150,033,695 -
debt
Current portion of long-term
debt *153,767,237 3,572,000 153,667,758
Total 153,767,237 153,605,695 153,667,758
----------------------------------------------- -------------- -------------- ------------
*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 were fully repayable at the end of 5 years
i.e., December 2022, further interest on these notes is paid
semi-annually. US$ 150 million Senior Unsecured Notes due in
December 2022 have since been exchanged with New Senior Unsecured
Notes due in 2027. Thus, the current portion of long-term debt has
been reduced by US$ 150 million and long term debt excluding
current portion has increased by US$ 150 million as of 1(st)
December 2022 as a result of this exchange.
8. 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 2022 and 30
September 2021 are as follows:
Transactions during the period
Particulars Period ended Period ended
30 September 2022 30 September
2021
-------------------------------- ------------------- --------------
Transactions with the Holding
Company
Amount Received (18,250,000) (8,575,000)
Interest - -
Transactions with KMP
Short term employee benefits 69,055 132,947
Entity over which KMP exercise
control
Cost incurred by the Focus
on behalf of the group in
respect of the Block 12,952,972 9,276,547
Remittances 1,320,000 11,336,000
--------------------------------- ------------------- --------------
09. PAYABLE/RECEIVABLE TO RELATED PARTIES
Particulars As at As at As at
30 September 30 September 31 March
2022 2021 2022
---------------------------- -------------- -------------- ------------
Entity over which KMP
exercise control
Receivable to Focus Energy
Limited 108,775,152 126,453,576 120,408,124
Payable with the Holding
Company
Payables to Gynia Holding
Limited* 627,488,125 583,933,798 625,442,503
Payable to KMP
Employee obligation 9,225 345,698 345,105
*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 in advance
to them in respect of contract costs 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 outstanding balance was
made subordinate to the loans taken from the banks and therefore,
is payable subsequent to repayment of bank loan in year 2024.
10. 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
2022 2021
------------------------------------- -------------- --------------
Profit attributable to shareholders
of Indus Gas Limited, for
basic and dilutive 12,833,991 16,867,419
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$) 0.07* 0.09*
Diluted earnings per share
(US$) 0.07* 0.09*
-------------------------------------- -------------- --------------
* Rounded off to the nearest two decimal places.
11. COMMITMENTS AND CONTINGENCIES
At 30 September 2022, the Group had capital commitments of
US$Nil (30 September 2022: US$ Nil;31 March 2022: US$Nil) in
relation to property, plant & equipment - development/producing
assets, in the Block. The Group has no contingencies as at 30
September 2022(30 September 2021: Nil;31 March 2022: Nil).
12. FINANCIAL RISK MANAGEMENT
The Group's financial risk management objectives and policies
are consistent with those disclosed in the consolidated financial
statements as at and for the year ended 31 March 2022.
13. INCOME TAX CREDIT
Indus Gas profits are taxable as per the tax laws applicable in
Guernsey where zero per cent tax rate has been prescribed for
corporates. Accordingly, there is no tax liability for the Group in
Guernsey. iServices and Newbury being participants in the PSC are
covered under the Indian Income tax laws as well as tax laws for
their respective countries. However, considering the existence of
double tax avoidance arrangement between Cyprus and India, and
Mauritius and India, profits in Newbury and iServices are not
likely to attract any additional tax in their local jurisdiction.
Under Indian tax laws, Newbury and iServices are allowed to claim
the entire expenditure in respect of the Oil Block incurred until
the start of commercial production (whether included in the
exploration and evaluation assets or development assets) as
deductible expense in the first year of commercial production or
over a period of 10 years. The Group has opted to claim the
expenditure in the first year of commercial production. As the
Group has commenced commercial production for SGL field in 2011 and
has generated profits in Newbury and iServices, the management
believes there is reasonable certainty of utilisation of such
losses in the future years and thus a deferred tax asset has been
created in respect of these.
14 . BASIS OF GOING CONCERN ASSUMPTION
As at 30 September 2022, the Group had current liabilities
amounting to US$ 183,606,263, the majority of which is towards
current portion of borrowings from banks and bonds. As at 30
September 2022, the amounts due for repayment (including interest
payable) within the next 12 months for long term borrowings were
US$ 176,433,130 .
Out of US$176.43 million an amount of US$ 150 million Senior
Unsecured Notes due in December 2022 have since been exchanged with
New Senior Unsecured Notes due in 2027. Thus the current portion of
long-term debt has been reduced by US$ 150 million and Long term
debt excluding current portion has been increased by US$ 150million
as of 1(st) December 2022 as a result of this exchange. The Group
expects to meet the balance amount from its internal generation of
cash from operations.
Post period end, the Group has raised New Senior Unsecured Notes
of US$ 10 million (Aggregate New Senior Unsecured Notes being US$
160 million) due in 2027. Additional funds may be raised, if
required, which will be used for planned capital expenditures
(including the 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
15. 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 recognized at the
end of the reporting periods under review may also be categorized
as follows:
30 September 30 September 31 March
2022 2021 2022
----------------------------------------------- ------------- ------------- -------------
Non-current assets
Loans
- Security deposits 549 567 549
Current assets
-Trade receivables 7,081,049 12,010,459 18,335,073
-Cash and cash equivalents 4,122,096 4,877,577 4,452,010
----------------------------------------------- ------------- ------------- -------------
Total financial assets 11,203,694 16,888,603 22,787,632
----------------------------------------------- ------------- ------------- -------------
Financial liabilities measured
at amortized cost
Non-current liabilities
- Long term debt from banks 27,200,889 199,541,249 39,239,735
- Payable to related parties 627,488,125 583,933,798 625,442,503
Current liabilities
- Current portion of long-term
debt* 176,433,130 20,841,609 172,747,343
- Current portion of payable
to related parties 9,225 345,697 345,105
* Accrued expenses and other liabilities 2,086,824 1,932,963 1,382,844
----------------------------------------------- ------------- ------------- -------------
Total financial liability
measured at amortized cost 833,218,193 806,595,316 839,157,530
----------------------------------------------- ------------- ------------- -------------
* US$ 150 million Senior Unsecured Notes due in December 2022
have since been exchanged with New Senior Unsecured Notes due in
2027. Thus, the current portion of long-term debt has been reduced
by US$ 150 million and long term debt excluding current portion has
been increased by the same amount as of 1(st) December 2022 as a
result of this exchange.
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 FEWFMEEESESE
(END) Dow Jones Newswires
December 23, 2022 02:00 ET (07:00 GMT)
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