Half Yearly Report

RNS Number : 6555J
Indus Gas Limited
21 December 2015
 

Monday 21st December 2015

For Immediate Release

 

Indus Gas Limited

("Indus" or "the Company")

 

Interim Results

 

Indus Gas Limited (AIM:INDI.L), 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 2015.

 

Consolidated reported adjusted revenues, operating profit and profit before tax for the interim period ending 30 September 2015 were US$ 22.63mn (US$ 17.48mn interim 2014), US$ 16.78mn (US$ 13.41mn interim 2014) and US$ 14.27mn (US$ 13.39mn interim 2014) respectively. The first half of the fiscal year witnessed stable production with more than 5.3 bcf of gas produced and invoiced to GAIL. There was no requirement for any invoicing under "Take or Pay" terms as a result of stabilized offtake. 

 

We have continued to make provision for a notional deferred tax liability of US$ 7.79mn (US$ 5.73mn interim 2014), in accordance with IFRS requirements.

 

During the half year, the Company drew the remaining US$ 44.4mn of the $180mn debt facility to meet its capital expenditure requirements. Additionally, during April 2015,Indus drew down SGD 100mn as first tranche under the US$ 300 million MTN programme. The proceeds of the MTN issue however remain unused and provide sufficient headroom to meet the financial obligations towards capital expenditure over the next 12 months.

 

Since April 2015  the Company has drilled 6 new appraisal wells ISH # 3, Sanu # 2, Satchi # 2, SX-8, A11 # 10 and Sandwich North-1 to continue the appraisal work in order to submit a robust Field Development Plan (FDP) in due course.

 

The Company has continued to make further progress on the   FDP in respect of the circa 2000 km2 area, outside of 176 km2 of previously granted SGL Mining Lease area ("Non -SGL Area") with additional ongoing appraisal well drilling & testing. Indus plans to submit the FDP to Government of India (Ministry of Petroleum and Natural Gas), the Director General of Hydrocarbons and ONGC as stipulated in Production Sharing Contract during Q1 2016 following a recently granted 3 months extension period.

 

The Company continues to realise US$5 per mmBtu in respect of its existing gas sales contract as tripartite negotiations are ongoing for a price revision (as specified in current contract) with Gas Authority of India Limited (GAIL) and Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL).

 

The Company also continues to make further progress towards finalising the gas price for the second contract with GAIL and RRVUNL for additional gas supplies to a new 160 MW turbine at Ramgarh.  Discussions on other technical and commercial aspects of the contract are also progressing well.

As previously mentioned the Company is actively progressing with plans for a gas pipeline to take significant volumes into markets currently supplied with higher priced LNG imports.

 

Commenting, Peter Cockburn, Chairman of Indus, said:

"Indus has seen consistent offtake during these six months as a result of stable operations at Ramgarh. This has resulted in no requirement for  "Take or Pay" invoicing which is a pleasing result for all parties and demonstrates a robustness in our base business." 

 

For further information please contact:

 

Indus Gas Limited

Peter Cockburn

John Scott

 

 

 

c/o+44 (0)20 76145900

 

aArden Partners plc

Steve Douglas

 

 

+44 (0)20 7614 5900

 

Bell Pottinger PR

Lorna Cobbett

 

+44 (0)20 3772 2500

 

  

 

 

Unaudited Condensed Consolidated Interim Financial Statements

Indus Gas Limited and its subsidiaries

Six months ended 30 September 2015

Contents

 

Unaudited Condensed Consolidated Statement of Financial Position

3

Unaudited Condensed Consolidated Statement of Comprehensive Income 

5

Unaudited Condensed Consolidated Statement of Changes in Equity

6

Unaudited Condensed Consolidated Statement of Cash Flows

7

Notes to Unaudited Condensed Consolidated Interim Financial Statements

9

 

Unaudited Condensed Consolidated Statement of Financial Position

(All amounts in US$, unless otherwise stated)

 

Notes

As at

30 September 2015

As at

30 September 2014

As at

31 March 2015

 

 

(Unaudited)

(Unaudited)

(Audited)

 

 

 

(Restated)

 

ASSETS

 

 

 

 

Non-current assets

 

 

 

 

Intangible assets: exploration and evaluation assets

 

7

 

-

 

-

 

-

Property, plant and equipment

8

522,510,609

442,971,685

483,794,473

Tax assets

 

1,483,713

966,453

1,228,787

Other assets

 

6,225

885

6,225

Total non-current assets

 

524,000,547

443,939,023

 485,029,485

Current assets

 

 

 

 

Inventories

 

4,265,838

7,905,776

5,231,415

Trade receivables

 

4,304,910

3,645,798

5,330,484

Other current assets

 

186,186

628,502

1,317,697

Cash and cash equivalents

 

106,023,268

5,038,024

12,251,533

Total current assets

 

114,780,202

17,218,100

24,131,129

Total assets

 

638,780,749

461,157,123

509,160,614

 

 

 

 

 

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

 

(9,313,781)

(9,313,781)

(9,313,781)

Merger reserve

 

19,570,288

19,570,288

19,570,288

Share option reserve

 

324,865

324,865

324,865

Retained earnings

 

33,702,917

18,213,174

27,225,937

Total  shareholders' equity

 

94,637,421

79,147,678

88,160,441

 

 

Unaudited Condensed Consolidated Statement of Financial Position (Contd.)

(All amounts in US $, unless otherwise stated)

 

 

Notes

As at

30 September 2015

As at

30 September 2014

As at

31 March 2015

 

 

(Unaudited)

(Unaudited)

(Audited)

 

 

 

      (Restated)

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Non-current liabilities

 

 

 

 

Long term debt , excluding current portion

9

305,040,754

76,453,890

200,293,945

Provision for decommissioning

 

1,353,405

1,191,579

1,281,862

Deferred tax liabilities (net)

 

34,234,802

18,413,620

26,445,323

Payable to related parties, excluding current portion

11

124,208,932

116,628,106

120,288,834

Deferred revenue

 

25,563,995

25,049,173

25,563,995

Total non-current liabilities

 

490,401,888

237,736,368

373,873,959

Current liabilities

 

 

 

 

Current portion of long term debt

9

20,864,714

17,582,006

18,389,976

Current portion payable to related parties

11

27,631,649

121,473,453

23,490,343

Accrued expenses and other liabilities

 

167,991

140,532

168,809

Deferred revenue

 

5,077,086

5,077,086

5,077,086

Total current liabilities

 

53,741,440

144,273,077

47,126,214

Total liabilities

 

544,143,338

382,009,445

421,000,173

Total liabilities and equity

 

638,780,749

461,157,123

    509,160,614

 

 

(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 2015

 

Six month ended

30 September 2014

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

Revenue                                 

 

22,631,938

 

17,048,656

 

Cost of sales

 

(4,137,020)

 

(3,007,340)

 

Administrative expenses

 

(1,717,973)

 

(1,061,280)

 

 

 

 

 

 

 

Profit from operations

 

         16,776,945

 

12,980,036

 

Foreign exchange gain/(loss), net

 

42,505

 

(22,361)

 

Interest expense

 

(2,553,065)

 

-

 

Interest income

 

75

 

50

 

Profit before tax

 

14,266,460

 

12,957,725

 

 

 

 

 

 

 

Income taxes

 -Deferred tax charge

 

 

(7,789,480)

 

                    

(5,725,894)

 

 

 

 

 

 

 

 

 

 

 

Profit for the period (attributable to the shareholder of the Group)

 

 

6,476,980

  7,231,831

 

 

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

 

 

6,476,980

7,231,831

 

 

Earnings per share

 

12

 

 

 

 

Basic

 

 

0.04

0.04

0.01

0.01

Diluted

 

 

0.04

0.04

0.01

0.01

Par value of each share in GBP

 

 

0.01

0.01

0.01

0.01

 

 

(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)

 

Share capital Number   Amount

Additional paid-in capital

Currency translation reserve

Merger reserve

Share option reserve

(Accumulated losses)/ Retained earnings

Total stockholders' equity

 

 

 

Balance as at 1 April 2015

 

182,973,924

3,619,443

46,733,689

(9,313,781)

19,570,288

324,865

27,225,937

88,160,441

Profit for the period

-

-

-

-

-

-

6,476,980

6,476,980

Total comprehensive income  for the period

-

-

-

-

-

-

6,476,980

6,476,980

Balance as at 30 September 2015

 

182,973,924

3,619,443

46,733,689

(9,313,781)

19,570,288

324,865

33,702,917

94,637,421

                     

 

 

 

Balance as at 1 April 2014

182,973,924

3,619,443

46,733,689

(9,313,781)

19,570,288

324,865

10,981,346

71,915,850

Profit for the period

-

-

-

-

-

-

7,231,831

7,231,831

Total comprehensive income  for the period

-

-

-

-

-

-

7,231,831

7,231,831

Balance as at 30 September 2014

182,973,924

3,619,443

46,733,689

(9,313,781)

19,570,288

324,865

18,213,174

79,147,678

 

 

(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 2015

(Unaudited)

 

Six months ended

30 September 2014

(Unaudited)

 

(A) Cash flow from operating activities

 

 

 

 

 

 

Profit before tax

 

14,266,460

 

12,957,725

 

 

Adjustments

 

 

 

 

 

Unrealised exchange loss/ (gain)

 

 

3,961

 

 

(737)

 

Interest income

 

(75)

 

(50)

 

Interest expense

 

2,553,065

 

-

 

Provision for decommissioning cost

 

-

 

111,633

 

Depreciation

 

3,866,696

 

2,538,780

 

 

Changes in operating assets and liabilities

 

 

 

 

 

 

Inventories

 

965,577

 

1,420,491

 

Trade receivables

 

1,025,573

 

4,201,605

 

Trade and other payables

 

4,233,768

 

3,229,667

 

Other current and non-current assets

 

120,178

 

(219,858)

 

Deferred revenue

 

-

 

430,341

 

Other liabilities

 

50,482

 

133,795

 

Cash generated from operations

 

27,085,685

 

24,803,392

 

 

Income taxes paid

 

(254,926)

 

(239,942)

 

 

Net cash generated from operating activities

 

26,830,759

 

24,563,450

 

 

(B) Cash flow from investing activities

 

 

 

 

 

 

Purchase of property, plant and equipment A

 

(32,747,077)

 

(9,295,829)

 

Interest received

 

75

 

50

 

 

Net cash used in investing activities

 

(32,747,002)

 

(9,295,779)

 

 

 

 

 

 

 

                   

 

Unaudited Condensed Consolidated Statement of Cash Flows

(All amounts in US $, unless otherwise stated) (Cont'd) 

 

 

Six months ended

30 September 2015

Six months ended

30 September 2014

 

 

(Unaudited)

(Unaudited)

(C ) Cash flow from financing activities

 

 

 

 

Proceeds from long term debt from banks

 

 

44,400,000

 

-

Proceeds from issue of Multicurrency Medium Term Note ("MTN")

 

69,548,283

-

Repayment of long term debt from banks

 

(8,660,000)

(8,660,000)

Payment of interest

 

(5,629,949)

(2,547,412)

 

Net cash generated from/(used in) financing activities

 

99,658,334

(11,207,412)

 

Net change in cash and cash equivalents

 

93,742,091

4,060,259

 

 

 

 

Cash and cash equivalents at the beginning of the period

 

12,251,533

977,028

Effect of exchange rate change on cash and cash equivalents

 

29,644

737

Cash and cash equivalents at the end of the period

 

106,023,268

5,038,024

 

 

 

 

Cash and cash equivalents comprises of

 

 

 

balances with banks

 

106,023,268

5,038,024

 

 

 

 

                 

 

A The purchase of property, plant and equipment above, includes additions to exploration and evaluation assets amounting to US$ 31,337,096 (previous period: US$ 15,787,912) 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. Consequent to this, the Group acquired an aggregate of 90 per cent participating interest in the Block and 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 wells (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 2015 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 2015.

 

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 2015.

 

These unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2015 and have been approved for issue by the Board of Directors on--------------___________

 

 

3.   STANDARDS AND INTERPRETATIONS ISSUED BUT NOT EFFECTIVE AND YET TO BE APPLIED BY THE GROUP

 

Summarised in the paragraphs below are standards, interpretations or amendments that have been issued prior to the date of approval of these consolidated financial statements and endorsed by EU and will be applicable for transactions in the Group but are not yet effective. These have not been adopted early by the Group and accordingly, have not been considered in the preparation of the consolidated financial statements of the Group.

 

Management anticipates that all of these pronouncements will be adopted by the Group in the first accounting period beginning after the effective date of each of the pronouncements. Information on the new standards, interpretations and amendments that are expected to be relevant to the Group's consolidated financial statements is provided below.

 

-     IFRS 9 Financial Instruments Classification and Measurement

     

In July 2014, the International Accounting Standards Board issued the final version of IFRS 9, Financial Instruments. The standard reduces the complexity of the current rules on financial instruments as mandated in IAS 39. IFRS 9 has fewer classification and measurement categories as compared to IAS 39 and has eliminated the categories of held to maturity, available for sale and loans and receivables. Further it eliminates the rule-based requirement of segregating embedded derivatives and tainting rules pertaining to held to maturity investments. For an investment in an equity instrument which is not held for trading, IFRS 9 permits an irrevocable election, on initial recognition, on an individual share-by-share basis, to present all fair value changes from the investment in other comprehensive income. No amount recognized in other comprehensive income would ever be reclassified to profit or loss. It requires the entity, which chooses to measure a liability at fair value, to present the portion of the fair value change attributable to the entity's own credit risk in other comprehensive income.

     

IFRS 9 replaces the 'incurred loss model' in IAS 39 with an 'expected credit loss' model. The measurement uses a dual measurement approach, under which the loss allowance is measured as either 12 month expected credit losses or lifetime expected credit losses. The standard also introduces new presentation and disclosure requirements.

     

This standard is effective for reporting periods beginning on or after 1 January 2018 with early adoption permitted. The management is currently evaluating the impact that this new standard will have on its consolidated financial statements.

 

-           IFRS 15 Revenue from Contracts with Customers

 

The International Accounting Standards Board (IASB) has published a new standard, IFRS 15 Revenue from Contracts with customers. This standard replaces IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers, and SIC-31 Revenue- Barter Transactions involving advertising services. It sets out the requirements for recognising revenue that apply to contracts with customers, except for those covered by standards on leases, insurance contracts and financial instruments. The new standard establishes a control-based revenue recognition model and provides additional guidance

in many areas not covered in detail under existing IFRSs, including how to account for arrangements with multiple performance obligations, variable pricing, customer refund rights, supplier repurchase options, and other common complexities.

 

This standard is effective for reporting periods beginning on or after 1 January 2017 with early adoption permitted. It applies to new contracts created on or after the effective date and to the existing contracts that are not yet complete as of the effective date.

 

The management is currently evaluating the impact that this new standard will have on its consolidated financial statements.

 

 

4.  JOINTLY CONTROLLED ASSETS

 

The Group participates in an unincorporated joint arrangement with Focus wherein the Group's interest in this arrangement was classified as jointly controlled assets. Following implementation of IFRS 11: Joint Arrangements, the Group's interest in this arrangement is now classified as Joint operation. All rights and obligations in respect of exploration, development and production of oil and gas resources under the '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.

 

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 are 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 2015 is shared between Focus, iServices and Newbury in the ratio of 10 percent, 65 percent and 25 percent respectively.

 

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 2015

(Unaudited)

Period ended

30 September 2014

(Unaudited)

Year ended

31 March 2015

(Audited)

Non-current assets

  522,510,609

442,971,685

483,794,473

Current assets

  4,265,838

7,905,776

5,231,415

Non-current liabilities

  1,353,405

1,191,579

1,281,862

Current liabilities

  27,631,649

121,289,798

23,490,343

Expenses (net of finance income)

  4,233,768

3,229,667

9,035,452

Commitments

  -

-

-

The GOI, through ONGC, has option to acquire similar participating interest in any such future successful discovery of oil or gas reserves in the Block that has been declared as commercially feasible to develop.

 

 

5.  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 2015.

 

6.  SEGMENT REPORTING

 

Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker 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.

 

 

7.  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 as at 31 March 2014

-

Additions A

15,787,912

Transfer to development assets B

(15,787,912)

Balance at  30 September  2014

-

Additions A

18,229,412

Transfer to development assets B

(18,229,412)

Balance as at 31 March 2015

-

Additions A

31,337,095

Transfer to development assets B

(31,337,095)

Balance as at  30 September 2015

-

 

 

 

A The above includes borrowing costs of US$ 439,064  for the period ended 30 September 2015 (30 September 2014: US$ 227,546 and 31 March 2015: US$ 930,056). The weighted average capitalisation rate on funds borrowed generally is 5.68 per cent per annum (30 September 2014: 5.85 per cent per annum and 31 March 2015: 5.62 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.

 

        

8.  PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment comprise of the following:

 

Cost

 

 

Land

Extended well test equipment

Development

/Production assets

Bunk houses

Vehicles

Other assets

Capital work-in-progress

Total

Balance as at 1 April 2015

167,248

3,737,654

491,344,442

5,917,523

4.576,803

1,492,748

1,189,853

508,426,271

Additions

-

-

43,297,264

-

-

8,981

32,400

43,338,645

Balance as at  30 September  2015

167,248

3,737,654

534,641,706

5,917,523

4,576,803

1,501,729

1,222,253

551,764,916

Accumulated depreciation

 

 

 

 

 

 

 

Balance as at 1 April 2015

-

1,369,651

14,506,669

4.516,785

2,878,730

1,359,963

-

24,631,798

Depreciation for the period

-

134,720

3,866,696

259,762

311,831

49,500

-

4,622,509

Balance as at  30 September 2015

 

-

1,504,371

18,373,365

4,776,548

3,190,561

1,409,463

-

29,254,307

Carrying value

 

 

 

 

 

 

 

 

As at 30 September 2015

167,248

2,233,283

516,268,339

1,140,9750

1,386,242

92,266

1,222,253

522,510,609

 

Cost

 

 

Land

Extended well test equipment

Development/

Production assets

Bunk houses

Vehicles

Other assets

Capital work-in-progress

Total

 

Balance as at  1 April 2014

 

167,248

3,731,437

407,065,250

5,384,531

4,804,502

1,478,568

1,406,329

424,037,865

 

Additions                           

-

6,217

84,319,739

532,992

-

14,180

353,232

85,226,360

 

Disposals

 

-

(40,547)

-

(227,699)

-

(569,708)

(837,954)

 

Balance as at 31 March 2015

167,248

3,737,654

491,344,441

5,917,523

4,576,803

1,492,748

1,189,853

508,426,271

 

 

Accumulated Depreciation

 

 

 

 

 

 

 

 

Balance as at  1 April  2014

-

1,043,944

6,922,627

3,775,601

2,519,738

1,193,704

 

15,455,614

 

Depreciation for the year

-

325,707

7,584,042

741,184

358,992

166,259

 

9,176,184

 

Balance as at  31 March 2015                                

-

1,369,651

14,506,669

4,516,785

2,878,730

1,359,963

-

24,631,798

 

 

 

 

 

 

 

 

 

 

 

Carrying value as at 31 March 2015

167,248

2,368,003

476,837,773

1,400,738

1,698,073

132,785

1,189,853

483,794,473

 

 

 

 

 

 

 

 

 

 

Cost

Land

Extended well test equipment

Development

/Production assets

Bunk Houses

Vehicles

Other assets

Capital work-in-progress

Total

 

Balance as at 1 April 2014

167,248

3,731,437

407,065,250

5,384,531

4,804,502

1,478,568

1,406,329

424,037,865

 

Additions

-

583

37,794,322

-

-

7,605

144,151

37,946,661

 

Balance as at  30 September  2014

167,248

3,732,020

444,859,572

5,384,531

4,804,502

1,486,173

1,550,480

461,984,526

 

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

 

Balance as at 1 April 2014

                                  -  

1,043,944

6,922,627

3,775,601

2,519,738

1,193,704

-

15,455,614

 

Depreciation for the period

  - 

167,671

2,538,780

409,413

346,672

94,691

-

3,557,227

 

Balance as at  30 September 2014

    -  

1,211,615

9,461,407

4,185,014

2,866,410

1,288,395

-

19,012,841

 

 

 

 

 

 

 

 

 

 

 

Carrying value

 

 

 

 

 

 

 

 

 

As at 30 September 2014

167,248

2,520,405

435,398,165

1,199,5172

1,938,092

197,778

1,550,480

  442,971,685

 

                                     

 

Borrowing costs capitalised for the period ended 30 September 2015 amounted to US$ 9,530,722 (30 September 2014: US$ 6,126,502 and 31 March 2015: US$ 14,268,842).

 

 

9.  LONG TERM DEBT FROM BANKS

 

 

Maturity

30 September 2015

(Unaudited)

30 September 2014

(Unaudited)

31 March 2015

(Audited)

 

Non-current portion of long term debt

2018/2021

305,040,754

76,453,890

200,293,945

Current portion of long term debt from banks

 

20,864,714

17,582,006

18,389,976

Total

 

325,905,468

94,035,896

 218,683,921

 

 

 

Current interest rates are variable and weighted average interest for the year was 5.68 per cent per annum (30 September 2014: 5.85 per cent per annum and 31 March 2015: 5.62 per cent per annum). The fair value of the above variable rate borrowings are 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.

 

During the period ended 30 September 2015, the Group has issued SGD 100 million notes under the US$ 300 million MTN programme carries interest rate of 8 per cent per annum. These notes are unsecured notes and are fully repayable at the end of 3 years i.e. April 2018 further interest on these notes will be paid semi-annually.

 

 

10.  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)

 

Disclosure of transactions between the Group and related parties and the outstanding balances as of 30 September 2015, 30 September 2014 and 31 March 2015 are as follows:

 

Transactions during the period

Particulars

 

Period ended

30 September 2015

Period ended

30 September

 2014

 

Transactions with the Holding Company

 

 

 

Interest paid

 

3,920,098

3,680,844

 

 

 

 

Transactions with KMP

 

 

 

Short term employee benefits

 

233,216

394,499

 

 

 

 

Entity over which KMP exercise control

 

 

 

Share of cost incurred by the Focus in respect of the Block

 

32,193,085

29,801,417

Remittances

 

28,852,000

4,890,000

Expenses reimbursed

 

445,315

405,510

           

 

 

 

Amount outstanding towards related parties

 

Particulars

As at

 30 September 2015

As at

30 September

2014

As at

31 March 2015

 

Entity over which KMP exercise control

 

 

 

 

 

Payable to Focus Energy Limited

27,502,572

121,289,798

23,446,172

 

 

Payable with the Holding Company

 

 

 

 

 

Payables to Gynia Holding Limited*

124,208,932

116,628,106

120,288,834

 

 

Payable to KMP

 

 

 

 

 

Employee obligation

129,077

183,655

44,171

 

 

 

 

 

 

 

 

                 

*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.

 

 

11. PAYABLE TO RELATED PARTIES

 

Particulars

As at

30 September 2015

As at

 30 September 2014

As at

31 March 2015

Entity over which KMP exercise control

 

 

 

Payable to Focus Energy Limited

27,502,572

121,289,798

23,446,172

Payable with the Holding Company

 

 

 

Payables to Gynia Holding Limited*

124,208,932

116,628,106

120,288,834

Payable to KMP

 

 

 

Employee obligation

129,077

183,655

44,171

 

 

 

 

 

Liability payable to Focus

 

Liability payable to Focus represents amounts due to them in respect of the Group's share of contract costs, for its participating interest in Block RJ-ON/6 pursuant to the terms of Agreement for Assignment dated 13 January 2006 and its subsequent amendments from time to time.

 

The management estimates the current borrowings to be repaid on demand within twelve months from the statement of financial position date and these have been classified as current borrowings.

 

Liability payable to Gynia

 

* Borrowings from Gynia Holdings Ltd. carries interest rate of 6.5 per cent per annum compounded annually. During the current year, the entire outstanding balance (including interest) was made subordinate to the loans taken from the banks (detailed in note 14) and therefore, is payable along with related interest subsequent to repayment of bank loan in year 2024. As at 31 March 2014, only US$ 52.6 million was subordinated to loans taken from banks.

 

Interest capitalised on loans above have been disclosed in notes 7 and 8.

 

12. 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 2015

Period ended

30 September 2014

 

 

 

 

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

 

6,476,980

7,231,831

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

 

311,260

96,882

Diluted weighted average number of shares (used for diluted profit per share

 

183,285,184

 

183,070,806

 

 

 

 

 

Basic earnings per share (US$)

 

0.04*

0.04*

Diluted earnings per share (US$)

 

0.04*

0.04*

 

*Rounded off to the nearest two decimal places.

 

 

13. RECLASSIFICATION

 

The statement of financial position as at 30 September 2014 has been restated due to reclassification of tax asset from current classification to non-current.

 

Detail of this reclassification is summarised below:

 

Statement of financial position-

Particular

30 September 2014

Reclassification

30 September 2014

(Adjusted)

Current

 

 

 

Tax asset

966,453

(966,453)

-

Non-current

 

 

 

Tax asset

 

966,453

966,453

 

 

 

14.  COMMITMENTS AND CONTINGENCIES

 

At 30 September 2015, the Group had capital commitments of US$ Nil (30 September 2014: US$ Nil; 31 March 2015: US$ Nil) in relation to property, plant & equipment - development/producing assets, in the Block.

 

The Group has no contingencies as at 30 September 2015 (30 September 2014: Nil; 31 March 2015: Nil).

 

 

15.  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 2015.

 

 

16.  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 Company has opted to claim the expenditure in the first year of commercial production. As the Group has commenced commercial production 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.

 

17.  BASIS OF GOING CONCERN ASSUMPTION

 

As at 30 September 2015, the Group had current liabilities amounting to US$ 53,741,440 majority of which is towards current portion of borrowings from banks and related party, Focus. The Group expects to meet its next year (year ended 30 September 2016) obligation towards existing bank loans from internal generation of cash from operations.

 

Further, in current year group had raised SGD 100,000,000 (i.e. US$ 69,944,000). The net proceeds of the issue of the Notes under the Programme, after deduction of the expenses incurred in connection with the issue of the Notes, will be used by the Group for acquisitions (including farm-ins), capital expenditures (including the exploration, appraisal and development of our assets), working capital, general corporate purposes and such other purposes as may specify in the applicable Pricing Supplement.

 

18.  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 categorised as follows:

 

 

 

30 September 2015

30 September 2014

31 March 2015

 

Non-current assets

 

 

 

 

-Other assets

6,225

885

6,225

 

Current assets

 

 

 

 

-Trade receivables

4,304,910

3,645,798

5,330,484

 

-Cash and cash equivalents

  106,023,268  

 5,038,024

12,251,533

 

Total financial assets

 110,334,403

 8,684,707

17,588,242

 

Financial liabilities measured at amortised

 

 

 

 

cost:

 

 

 

Non-current liabilities

 

 

 

-  Long term debt from banks

305,040,754

 76,453,890

200,293,945

-  Proceeds from issue of MTN      programme

 

 

 

-  Payable to related parties

 124,208,932

 116,628,106

120,288,834

Current liabilities

 

 

 

-  Long term debt from banks

20,864,714

      17,582,006

18,389,976

-  Payable to related parties

27,631,649  

121,473,453

23,446,172

-  Accrued expenses and other liabilities

167,991

140,532

168,809

Total financial liability measured at amortised cost

477,914,040

322,277,987

362,587,736

           

 

 

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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