Half-year Report

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

 


Jonathan Keeling

 

+44 (0) 20 8133 3375

Strand Hanson Limited (Nominated and Financial Adviser)

 


Ritchie Balmer, Rory Murphy

 

+44 (0) 20 7409 3494

Arden Partners plc (Broker)

 


Equity Sales: James Reed-Daunter

 

+44 (0) 20 7614 5900

 

 

 

Unaudited Condensed Consolidated Statement of Financial Position

 

(All amounts in US$, unless otherwise stated)

 

 

Notes

As at

30 September 2022

As at

30 September 2021

As at

31 March 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 1st 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

30 September 2022

 

  Six months ended

30 September 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 Number  Amount

Additional paid-in capital

Currency translation reserve

Merger reserve

(Accumulated losses)/ Retained earnings

Total stockholders' equity

 

 

 

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 ended

30 September 2022

(Unaudited)


Six months ended

30 September 2021

(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 30th 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

30 September 2022

(Unaudited)

 

Period ended

30 September 2021

(Unaudited)

Year ended

31 March 2022

(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 well test equipment

Development Assets

Production Assets

Bunk Houses

Vehicles

Other assets

Capital work-in-progress

Total

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

Disposals/Transfers

-

-

162,004

44,341,029

(66,383,013)

66,383,013

-

-

46,888

-

-

-

26,293

110,959,227

(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 well test equipment

Development Assets

Production assets

Bunk houses

Vehicles

Other assets

Capital work-in-progress

Total

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

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

  -

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 well test equipment

Development

Assets

Production assets

Bunk houses

Vehicles

Other assets

Capital work-in-progress

Total

 

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

Disposals/Transfers

-

-

258,301

-

74,380,143 (71,343,270)

-

71,343,270

-

-

-

-

-

-

84,481

-

74,722,925 

-

 

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 2022

(Unaudited)

30 September 2021

(Unaudited)

31 March 2022

(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 2022

(Unaudited)

30 September 2021

(Unaudited)

31 March 2022

(Audited)

Non-current portion of long-term debt

2023

-

150,033,695

-

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 1st 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 ofGynia 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 2022 and 30 September 2021 are as follows:

 

Transactions during the period

 

Particulars

 

Period ended

30 September 2022

Period ended

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

30 September 2022

As at

30 September 2021

As at

31 March 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

30 September 2022

Period ended

30 September 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 1st 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 2022

30 September 2021

 31 March 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 1st 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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