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

30 September 2020 (Unaudited)

As at

30 September 2019 (Unaudited)

As at

31 March 2020 (Audited)

Assets

 

 

 

 

Non-Current Assets

 

 

 

 

 

 

 

 

 

Intangible assets: exploration and evaluation assets

6

 

-

 

-

 

                  -

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

30 September 2020 (Unaudited)

Six months ended

30 September 2019 (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 paid-in capital

Currency translation reserve

Merger reserve

(Accumulated losses) / Retained earnings

Total stockholders' equity

 

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

30 September 2020 (Unaudited)

 

Six months ended

30 September 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. -

 

 

3JOINTLY 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

30 September 2020

(Unaudited)

 

Period ended

30 September 2019

(Unaudited)

Year ended

31 March 2020

(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 well test equipment

Development Assets

Production Assets

Bunk Houses

Vehicles

Other assets

Capital work-in-progress

Total

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

Disposals/Transfers

-

-

10,829

-

63,036,866

 

-

-

-

-

-

-

-

-

82,130

-

63,129,825

-

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 well test equipment

Development Assets

Production assets

Bunk houses

Vehicles

Other assets

Capital work-in-progress

Total

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

Disposals/Transfers

-

-

805

-

58,639,020

(16,994,002)

16,994,002

-

-

-

-

5140

-

279,706

-

75,918,673

(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 well test equipment

Development

Production assets

Bunk houses

Vehicles

Other assets

Capital work-in-progress

Total

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

Disposals/Transfers

-

-

287,354

-

100,548,333

-

29,008,120

1,013,584

929,071

143,708

-

5,165

-

1,020,875

(929,071)

132,027,139

-

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 2020

(Unaudited)

30 September 2019

(Unaudited)

31 March 2020

(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 2020

(Unaudited)

30 September 2019

(Unaudited)

31 March 2020

(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 Personnel (KMP) exercise control (with whom there are transactions)

Focus Energy Limited

 

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

30 September 2020

Period ended

30 September 2019

Transactions with the Holding Company

 

 

 

Amount Received

Interest

 

34,200,000

14,700,709

57,600,000

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

30 September 2020

As at

30 September 2019

As at

31 March 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

30 September 2020

Period ended

30 September 2019

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.

 

15.  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 2020

30 September 2019

31 March 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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