RNS Number : 9820W
Indus Gas Limited
30 December 2021
 

 

Indus Gas Limited and its subsidiaries

("Indus" or the "Company")

 

Unaudited Condensed Consolidated Interim Financial

Statements for the six month period ended 30 September 2021

 

Indus Gas Limited (AIM:INDI.L), the oil & gas exploration and development company,  is pleased to report its unaudited interim results for the six month period ending 30 September 2021.

 

Consolidated reported adjusted revenues, operating profit and profit before tax for the interim period ending 30 September 2021 were US$ 27.11m (US$ 23.21m interim 2020), US$ 23.34m (US$ 21.17m interim 2020) and US$ 22.97m (US$ 20.92m interim 2020) respectively. The Company has continued to make provisions for a notional deferred tax liability of US$ 6.09m (US$ 1.48m interim 2020), in accordance with IFRS requirements. The Company continues to realize US$5 per mmbtu in respect of its existing gas sales contract.

 

Following the approval from the Directorate General of Hydrocarbons (DGH) and government for the integrated Field Development Plan ("FDP") for the SSG (Pariwar) & SSF (B&B) discoveries, production from the SSG and SSF fields has now commenced, representing another major milestone in the Company's development. 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. 

 

Commenting, Peter Cockburn, Chairman of Indus, said:

"While the pandemic continues to present operational challenges, revenues in the interim period recovered to the comparable pre pandemic level achieved in 2019. This is testament to the dedication and skill of the team on-site whose safety remains our top priority. The Company continues to anticipate a step change in revenues once the additional gas supplies commence through the new pipeline."

 

For further information, please contact:

 

Indus Gas Limited

Peter Cockburn

Jonathan Keeling +44 (0) 20 7877 0022

 

Arden Partners plc

Antonio Bossi / Steve Douglas (Corporate Finance) +44 (0) 20 7614 5900

James Reed-Daunter (Equity Sales)

 

 

 

 

a   Unaudited Condensed Consolidated Statement of Financial Position

 

 (All amounts in US$, unless otherwise stated)

 

 

Notes

As at

30 September 2021

As at

30 September 2020

As at

31 March 2021

 

 

(Unaudited)

(Unaudited)

(Audited)

 

 

 

 

 

ASSETS

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

6

1,097,162,179

1,042,615,854

 1,080,954,065

Tax assets

 

979,498

864,660

916,330

Other assets

 

567

562

567

Total non-current assets

 

1,098,142,244

1,043,481,076

1,081,870,962

Current assets

 

 

 

 

Inventories

 

7,074,881

6,917,524

8,538,264

Prepayments

 

                    617,930

                    70,897

-

Trade and other receivables

 

12,010,459

21,210,322

32,954,081

Receivable from related party

     8

126,453,576

71,130,610

124,394,123

Cash and cash equivalents

 

4,877,577

1,455,261

995,765

Total current assets

 

151,034,423

100,784,614

166,882,233

Total assets

 

1,249,176,667

1,144,265,690

1,248,753,195

 

 

 

 

 

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

 

233,611,037

208,256,336

216,743,618

Total shareholders' equity

 

294,220,675

268,865,974

277,353,256

 

LIABILITIES

 

 

 

 

Non-current liabilities

 

 

 

 

Long term debt, excluding current portion

7

199,541,249

216,368,550

207,959,625

Payable to related parties, excluding current portion

8

583,933,798

493,183,415

592,508,798

Deferred tax liabilities (net)

 

115,751,586

94,988,359

109,653,312

Provision for decommissioning

 

1,968,008

1,792,200

1,912,427

Deferred revenue

 

25,563,995

25,563,995

25,563,995

Total non-current liabilities

 

926,758,636

831,896,519

937,598,157

 

Current liabilities

 

 

 

 

Current portion of long term debt

7

20,841,609

34,682,010

24,490,194

Current portion payable to related parties

8

                 345,698

345,816

349,019

Trade and other payables

 

                   1,932,963

3,398,285

3,885,483

Deferred revenue

 

5,077,086

5,077,086

5,077,086

Total current liabilities

 

28,197,356

43,503,197

33,801,782

Total liabilities

 

              954,955,992

875,399,716

971,399,939

Total liabilities and equity

 

1,249,176,667

1,144,265,690

1,248,753,195

 

(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 2021

 

     Six month ended

30 September 2020

 

 

 

Unaudited

 

Unaudited

 

Revenue                                

 

27,114,413

 

23,213,326

 

Cost of sales

 

(3,777,098)

 

(1,458,977)

 

Administrative expenses

 

                            (372,083)

 

(586,360)

 

 

 

 

 

 

 

Profit from operations

 

22,965,232      

 

21,167,989     

 

Foreign exchange gain/(loss), net

 

461

 

(452,778)

 

 

Interest income

 

                                     -

 

209,418

 

Profit before tax

 

22,965,693

 

20,924,629

 

 

 

 

 

 

 

Income taxes

-Deferred tax charge

 

 

(6,098,274)

 

 

(1,483,524)

 

 

Profit for the period (attributable                                                                                                                     16,867,419                                 19,441,105

to the shareholder of the Group)

 

 

 

 

Total comprehensive income for the period (attributable to the shareholders of the Group)

 

 

                  16,867,419

                    19,441,105

Earnings per share

 

9

 

 

Basic

 

 

0.09

0.11

Diluted

 

 

0.09

0.11

(The (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 Number   Amount

Additional paid-in capital

Currency translation reserve

Merger reserve

Retained earnings

Total stockholders' equity

 

 

 

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

                     

 

 

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

 

(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 2021

(Unaudited)

 

Six months ended

30 September 2020

(Unaudited)

 

(A) Cash flow from operating activities

 

 

 

 

 

Profit before tax

 

22,965,693

 

20,924,629

 

Adjustments

 

 

 

 

 

Unrealised exchange gain

 

(461)

 

(21,692)

 

Interest income

 

                                  -

 

(209,418)

 

Depreciation

 

3,388,575

 

846,919

 

Changes in operating assets and liabilities

 

 

 

 

 

Inventories

 

1,463,383

 

717,897

 

Trade receivables

 

20,898,031

 

5,107,746

 

Trade and other payables

 

3,498,515

 

-

 

Other current and non-current assets

 

(572,339)

 

(16,289)

 

Provisions for decommissioning

 

55,577

 

92,991

 

Other liabilities

 

(1,955,840)

 

353,980

 

Cash generated from operations

 

49,741,134

 

27,796,763

 

Income taxes (paid)/refund

 

(63,168)

 

1,164,877

 

Net cash generated from operating activities

 

                       49,677,966

 

           28,961,640

 

 

(B) Cash flow from investing activities

 

 

 

 

 

Purchase of property, plant and equipment

 

(17,366,652)

 

 (51,215,789)

 

Interest received

 

                                 -

 

209,418

 

Net cash used in investing activities

 

(17,366,652)

 

         (51,006,371)

 

 

(C) Cash flow from financing activities

 

 

 

 

 

Repayment of long term debt from banks

 

(12,168,000)

(3,600,000)

Proceed from Related Party

 

(8,575,000)

34,200,000

Payment of interest

 

(7,687,963)

(7,392,831)

Net cash (used in)/generated from financing activities

 

(28,429,963)

23,207,169

Net change in cash and cash equivalents

 

3,881,351

1,162,438

Cash and cash equivalents at the beginning of the period

 

 

995,765

 

284,619

Effect of exchange rate change on cash and cash equivalents

 

461

   (8,204)

Cash and cash equivalents at the end of the period

 

4,877,577

     1,455,261

 

 

 

 

 

                               

               

 

 (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 March2008 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 to acquire 30 pct Participating Interest exercised by ONGC in respect of discoveries. ONGC has already exercised 30 pct 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 2021 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 2021.

 

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 2021.

 

These unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2021 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 had reduced 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  get a 30 per cent share in the production of gas subject to recovery of contract costs as  per PSC 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 for the block and thereafter towards development cost.

 

On the basis of above, gas production for the period ended 30 September 2021 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 2021

(Unaudited)

 

Period ended

30 September 2020

(Unaudited)

Year ended

31 March 2021

(Audited)

Non-current assets

1,097,162,176

1,042,615,854

1,080,954,065

Current assets

133,528,427

78,048,134

132,932,387

Non-current liabilities

1,968,004

1,792,200

1,912,427

Current liabilities

-

-

                 -

Expenses (net of finance income)

3,498,515

1,632,460

2,732,049

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 2021.

 

 

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 Group 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 well test equipment

Development Assets

Production Assets

Bunk Houses

Vehicles

Other assets

Capital work-in-progress

Total

Balance as at 1 April 2021

1,67,248

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

Additions

Disposals/Transfers

-

-

258,301

19,711,928

(91,111,073)

   91,111,073                    -                     

-

-

-

-

-

-

54,105

111,135,407 (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

  - 

1,00,223

                  -

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 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

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

-

-

39,344

101,349,205

(17,556,303)

-

17,553,612

-

-

-

1,165,653

102,554,202    (2,691)

 

Balance as at 31 March 2021

167,248

4,914,428

862,379,376

258,573,673

7,869,575

4,917,035

1,695,265

2,894,389

1,143,410,989

 

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 year

  - 

201,548

-

1,665,054

125,401

264,600

33,630

-

2,290,233

Balance as at 31 March 2021

    -  

2,673,660

-

47,378,609

6,018,596

4,702,682

1,683,377

-

62,456,924

 

Carrying value

 

 

 

 

 

 

 

 

 

 

As at 31 March 2021

167,248

2,240,768

862,379,376

  211,195,064

1,850,979

214,353

11,888

2,894,389

1,080,954,065

                     

 

 

Borrowing costs capitalised for the period ended 30 September 2021 amounted to US$ 7,788,003 (30 September 2020: US$ 23,126,508 and 31 March 2021: US$ 47,894,782). The production from SSG and SSF field have already commenced.

 

 

7.  LONG TERM DEBT FROM BANKS

 

 

Maturity

30 September 2021

(Unaudited)

30 September 2020

(Unaudited)

31 March 2021

(Audited)

 

Non-current portion of long term debt

2024

49,507,554

66,330,532

57,979,631

Current portion of long term debt from banks

 

17,269,609

31,071,853

20,923,919

Total

 

66,777,163

97,402,385

78,903,550

 

             

 

Current interest rates are variable and weighted average interest for the period was 6.70 per cent per annum (30 September 2020: 6.74 per cent per annum and 31 March 2021: 6.75 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 2021

(Unaudited)

30 September 2020

(Unaudited)

31 March 2021

(Audited)

 

Non-current portion of long term debt

2023

150,033,695

150,038,018

149,979,995

Current portion of long term debt from banks

 

3,572,000

3,610,157

3,566,275

Total

 

153,605,695

153,648,175

153,546,270

 

 

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.

 

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 GyniaHoldings 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 2021 and 30 September 2020 are as follows:

 

Transactions during the period

 

Particulars

 

Period ended

30 September 2021

Period ended

30 September 2020

Transactions with the Holding Company

 

 

 

Amount Received

Interest

 

(8,575,000)

-

34,200,000

14,700,709

 

 

 

 

Transactions with KMP

 

 

 

Short term employee benefits

 

132,947

112,874

 

 

 

 

Entity over which KMP exercise control

 

 

 

Cost incurred by the Focus on behalf of the group in respect of the Block

 

9,276,547

39,277,690

Remittances

 

11,336,000

50,850,000

 

10. PAYABLE/RECEIVABLE TO RELATED PARTIES

 

Particulars

As at

30 September 2021

As at

30 September 2020

As at

31 March 2021

Entity over which KMP exercise control

 

 

 

Receivable to Focus Energy Limited

 

126,453,576

71,130,610

124,394,123

Payable with the Holding Company

 

 

 

Payables to Gynia Holding Limited*

583,933,798

493,183,415

592,508,798

 

Payable to KMP

 

 

 

Employee obligation

345,698

345,816

349,019

 

 

 

 

*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., Gynia has agreed not to charge interest on the outstanding balance for the period April 2021 to September 2021. 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.

 

 

 

9. 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 2021

Period ended

30 September 2020

Profit attributable to shareholders of Indus Gas Limited, for basic and dilutive

 

16,867,419

19,441,105

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$)

 

0.09*

0.11*

Diluted earnings per share (US$)

 

0.09*

0.11*

*Rounded off to the nearest two decimal places.

 

10.  COMMITMENTS AND CONTINGENCIES

 

At 30 September 2021, the Group had capital commitments of US$Nil (30 September 2020: US$ Nil;31 March 2021: US$Nil) in relation to property, plant & equipment - development/producing assets, in the Block.The Group has no contingencies as at 30 September 2021(30 September 2020: Nil;31 March 2021: Nil).

 

11.  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 2021.

 

12.  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.

 

 

13.  BASIS OF GOING CONCERN ASSUMPTION

 

As at 30 September 2021, the Group had current liabilities amounting to US$ 28,193,356 majorities of which is towards current portion of borrowings from banks and related parties. As at 30 September 2021, the amounts due for repayment (including interest payable) within the next 12 months for long term borrowings are US$ 20,841,609 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

 

14.  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 2021

30 September 2020

 31 March 2021

 

Non-current assets

 

 

 

Loans

- Security deposits

567

562

567

 

Current assets

 

 

 

-Trade receivables

12,010,459

21,210,322

32,908,490

-Cash and cash equivalents

4,877,577

1,455,261

995,765

Total financial assets

16,888,603

22,666,145

  33,904,822

 

Financial liabilities measured at amortised cost

Non-current liabilities

 

 

 

-  Long term debt from banks

199,541,249

216,368,550

207,959,625

-  Payable to related parties

583,933,798

493,183,415

592,508,798

 

Current liabilities

 

 

 

-  Current portion of long term debt

20,841,609

34,682,010

24,490,194

-  Current portion of payable to related parties

345,697

345,816

349,019

-  Accrued expenses and other liabilities

1,932,963

3,398,285

3,850,242

Total financial liability measured at amortized cost

806,595,316

747,978,076

829,157,878

         

 

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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