TIDMINDI
RNS Number : 1739S
Indus Gas Limited
29 September 2017
29(th) September 2017
Indus Gas Limited
('Indus' or 'the Company')
Preliminary Financial Results
Indus Gas Limited (AIM:INDI.L), an oil and gas exploration and
development company, is pleased to report its full year results for
the 12 months to 31 March 2017.
Highlights
Operations:
-- The Integrated Field Development Plan for the SSG (Pariwar)
& SSF (B&B) area of 2,000 km2 was approved by the
Directorate General of Hydrocarbons (DGH) and Ministry of Petroleum
and Natural Gas (MoP&NG).
-- The revised Field Development Plan ('FDP') in respect of the
SGL area for the enhancement of production to about 90mmscfd has
been approved by the Management Committee having representative of
MoP&NG, DGH & Contractors/Companies.
-- Successfully drilled development wells, which showed good
results.
-- The new gas sand reservoir was successfully exploited for
production.
-- Discussions are ongoing with potential buyers including GAIL
for finalizing the prices of additional gas. Discussions are also
being held for finalising the gas pipeline to evacuate additional
gas supply from the SSG & SSF Development area of 2000 km2 of
the block. The additional production of SSG & SSF area has been
approved to be about 200mmscfd.
Financial:
-- Total revenues increased to US$ 54.57m (2015-16: US$ 45.60
million).
-- Reported operating profit increased to US$ 41.51m (2015-16:
US$ 33.15 million).
-- The profit before tax increased to US$ 43.78 million
(2015-16: US$ 29.71 million).
-- Investments were made in property plant equipment,
exploration and evaluation assets amounting to US$
88.80million.
Mr Peter Cockburn, Chairman of the Company commented:
The financial period witnessed a continuation of the extremely
challenging and volatile conditions facing the global oil and gas
sector. However, the Company's activities continue to gather
momentum. The approval of the integrated FDP for the SSG and SSF
area coupled with the revised FDP for the SGL acreage represented
major milestones achieved in 2017.
The Company's strong operational and financial performance is
highlighted by another year of improved revenue and profit
generation. The Board continues to anticipate a substantial
increase in revenues once the additional gas supplies commence
under the new FDP approval for SSF and SSG.
In accordance with the AIM rules, Paul Fink, Technical
Consultant, a Geophysicist who holds an engineering degree from the
Mining University of Leoben, Austria and has 25 years of industry
experience is the qualified person that has reviewed the technical
information contained in this release.
-S-
For further information please contact:
Indus Gas Limited
Peter Cockburn
Bruce McNaught +44(0)20 7614 5900
-------------------- -------------------
Arden Partners plc
Steve Douglas +44(0)20 7614 5900
-------------------- -------------------
Introduction
Since flotation in June 2008 the Company has executed a clear
and consistent strategy with the central objective being to
maximise long term shareholder value creation from our license
block. This strategy has delivered prolific exploration success as
evidenced by the rapid growth in our underlying reserves base and
the successful execution of the first production phase.
Development and appraisal activity has continued at a rapid pace
in the last twelve months. This drilling and appraisal programme
has provided further valuable insight into the gas structures
present in the western half of our block.
Indian energy security remains one of the key challenges facing
the government. India continues to be a major net importer of
energy. This energy deficit can only be addressed through major
investment programmes in long term infrastructure build and
incentivising domestic energy companies to increase exploration and
production.
Activity
Indus is pleased to announce another year of good achieving
consolidated total revenues of US$ 54.57 million. We have continued
to increase operating profits and our stated long term business
plan remains on track. An integrated FDP for the SSG & SSF area
of the Block, for future enhancement of revenues, has been approved
by Managing Committee. Tie ups for evacuation and sale of the
additional gas are in progress.
A summary of activities since April 2016 is provided below:
Operations
The company has achieved total revenue of US$ 54.57 million in
the financial year ended March, 2017.
Operational activities over the last year have followed the
Group's key objectives:
a) appraisal drilling to support the integrated FDP;
b) drilling and completion of production wells for the SGL field
development continued as planned to meet contracted and planned gas
sale requirements;
c) testing various wells previously drilled, where gas shows
were encountered to enable the Group to increase its reserve base;
and
d) testing the B&B gas recovery potential in addition to gas
discovered in the Pariwar formation.
The current drilling programme is progressing on schedule and
producing positive results. Now that the FDP for SSG & SSF
Development area has been approved, we continue to test concepts
and obtain log and core data for analysis outside the SGL area. In
the SGL area work continues to expand knowledge of the producing
intervals. Additional testing is part of a programme to enhance
production and maximize recovery of gas through good asset
management. Activities such as these will increase as we obtain and
act on new data and production history. An important development in
respect of SGL Field was the discovery of new sands within Pariwar.
These were located just below the existing producing upper P10
sands. These reservoirs were successfully exploited for production
and going forward will add to the reserves and production from
existing and new wells.
Financials
During the financial year, the Company achieved total revenue of
US$ 54.57 million, resulting in reported operating profit of US$
41.51 million (2015/16 US$ 33.15 million). The reported profit
after tax was US$ 25.38million (2015/16 US$ 15.71 million) after a
foreign exchange gain of US$ 2.27 million (2015/16 foreign exchange
loss of US$ 0.37 million).
While the Company is not expected to pay any significant taxes
on its income for many years in view of the 100% deduction allowed
on the capital expenses in the Block, the Company has accrued
non-cash deferred tax liability of US$ 18.40 million as per IFRS
requirements.
Post this deferred tax liability provision, the net profit for
the year was US$ 25.38million.
The expenditure on the purchase of property, plant &
equipment was US$ 88.80 million. The property plant and equipment
including development assets and production assets increased to US$
639.86 million.
The current assets (excluding cash) as of 31 March 2017 stood at
US$ 7.66 million, which includes US$ 5.58 million of inventories
and US$ 2.04 million of trade receivables. The trade receivables
are mainly on account of receivables from GAIL. The current
liabilities of the Company, excluding the related party liability
of US$ 5.57 million and current portion of long term debt of US$
46.61 million, stood at US$ 5.21 million. This comprised mainly of
deferred revenue of US$ 5.08 million (GAIL Take or Pay Payment) and
other liabilities of US$ 0.13 million.
As of 31 March 2017, the outstanding debt of the Company was US$
286.26 million, out of which US$ 46.61million was categorised as
repayable within a year and the remaining US$ 239.65 million has
been categorised as a long term liability. During the year, the
Company has repaid an amount of US$ 34.22 million of the
outstanding term loan facilities, as per the scheduled repayment
plan.
Outlook
During the next twelve months, we expect a further step change
in the growth of the Company. Following FDP approval for both SGL
and SSG & SSF Development area, we shall look to develop the
2176 km(2)of the Development area. Existing production from SGL
area is also expected to increase with the approval of FDP. We look
forward to continue drilling success in both Pariwar and B&B.
Negotiations on the new gas sales contract with GAIL are on-going.
The Company is discussing connection arrangements to the pipeline
for the additional gas which will enable connectivity to the
national gas grid supplying customers in Gujarat, Rajasthan and
Punjab.
Consolidated Statement of Financial Position
(All amounts in United States Dollars, unless otherwise
stated)
Note 31 March 31 March
2017 2016
------------ --------------------
ASSETS
Non-current assets
Intangible assets: exploration 6 - -
and evaluation assets
Property, plant and equipment 7 639,862,170 562,441,955
Tax assets 2,165,313 1,735,438
Other assets 885 885
Total non-current assets 642,028,368 564,178,278
------------ --------------------
Current assets
Inventories 10 5,581,503 4,113,607
Trade receivables 2,045,252 3,266,738
Other current assets 11 38,784 238,879
Cash and cash equivalents 12 11,401,788 61,081,916
------------ --------------------
Total current assets 19,067,327 68,701,140
------------ --------------------
Total assets 661,095,695 632,879,418
------------ --------------------
LIABILITIES AND EQUITY
Shareholders' equity
Share capital 13 3,619,443 3,619,443
Additional paid-in capital 13 46,733,689 46,733,689
Currency translation
reserve 13 (9,313,781) (9,313,781)
Merger reserve 13 19,570,288 19,570,288
Share option reserve 21 - -
Retained earnings 13 68,639,613 43,256,305
Total shareholders' equity 129,249,252 103,865,944
------------ --------------------
Liabilities
Non-current liabilities
Long term debt, excluding
current portion 14 239,647,360 283,779,293
Provision for decommissioning 15 1,321,033 1,132,726
Deferred tax liabilities
(net) 8 58,848,114 40,445,531
Payable to related parties,
excluding current portion 16 149,071,994 128,107,609
Deferred revenue 25,563,995 25,563,995
Total non-current liabilities 474,452,496 479,029,154
------------ --------------------
Current liabilities
Current portion of long
term debt 14 46,614,354 37,556,739
Current portion payable
to related parties 16 5,570,622 7,175,123
Accrued expenses and
other liabilities 131,885 175,372
Deferred revenue 5,077,086 5,077,086
Total current liabilities 57,393,947 49,984,320
------------ ------------
Total liabilities 531,846,443 529,013,474
------------ ------------
Total equity and liabilities 661,095,695 632,879,418
------------ ------------
(The accompanying notes are an integral part of these
consolidated financial statements)
These consolidated financial statements were approved and
authorized for issue by the board on 29 September 2017
Consolidated Statement of Comprehensive Income
(All amounts in United States Dollars, unless otherwise
stated)
Year ended Year ended
31 March 31 March
Note 2017 2016
------------ ------------
39,073,203 45,595,101
Revenues
Other operating income 17 15,500,000 -
Cost of sales (11,143,221) (10,159,620)
------------ ------------
Gross profit 43,429,982 35,435,481
------------ ------------
Cost and expenses
Administrative expenses (1,920,445) (2,282,260)
Operating profit 41,509,537 33,153,221
------------ ------------
Foreign currency exchange
(loss)/gain, net 19 2,275,910 (366,430)
Interest expense - (3,081,211)
Interest income 444 131
Profit before tax 43,785,891 29,705,711
------------ ------------
Income taxes 9
* Deferred tax expense (18,402,583) (14,000,208)
------------ ------------
Profit for the year (attributable
to the shareholders of
the 25,383,308 15,705,503
Group)
------------ ------------
Total comprehensive income
for the year (attributable
to the shareholders of
the Group) 25,383,308 15,705,503
------------ ------------
Earnings per share 22
Basic 0.14 0.09
Diluted 0.14 0.09
(The accompanying notes are an integral part of these
consolidated financial statements)
Consolidated Statement of Changes in Equity
(All amounts in United States Dollars, unless otherwise
stated)
Common stock Additional Currency Merger Share Retained Total
paid translation reserve option earnings shareholders'
in capital reserve reserve equity
------------------------ ------------ ------------ ----------- ---------- ------------ --------------
No. of Amount
shares
--------------- ------------ ---------- ------------ ------------ ----------- ---------- ------------ --------------
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
and total
comprehensive
income
for the
year. - - - - - - 15,705,503 15,705,503
Amount
Transferred
to retained
earnings - - - - - (324,865) 324,865 -
--------------- ------------ ---------- ------------ ------------ ----------- ---------- ------------ --------------
Balance
as at
31 March
2016 182,973,924 3,619,443 46,733,689 (9,313,781) 19,570,288 - 43,256,305 103,865,944
--------------- ------------ ---------- ------------ ------------ ----------- ---------- ------------ --------------
Comprehensive
income
for the
year - - - - - - 25,383,308 25,383,308
Amount - - - - - - - -
transferred
to retained
earnings
--------------- ------------ ---------- ------------ ------------ ----------- ---------- ------------ --------------
Balance
as at
31 March
2017 182,973,924 3,619,443 46,733,689 (9,313,781) 19,570,288 - 68,639,613 129,249,252
--------------- ------------ ---------- ------------ ------------ ----------- ---------- ------------ --------------
(The accompanying notes are an integral part of these
consolidated financial statements)
Consolidated Statement of Cash Flow
(All amounts in United States Dollars, unless otherwise
stated)
Note Year ended Year ended
31 March 31 March
2017 2016
------------ ------------
Cash flow from operating
activities
Profit before tax 43,785,891 29,705,711
Adjustments
Unrealized exchange (gain)/loss 19 (2,268,808) 366,430
Interest income (444) (131)
Interest Expense - 3,081,211
Depreciation 7 10,352,335 9,374,247
Changes in operating assets
and liabilities
Inventories (1,467,896) 1,117,808
Trade receivables 1,221,486 2,063,746
Other current and non-current
assets 200,095 1,084,158
Payable to related party-operating
activities 11,456,179 10,187,655
Provisions for decommissioning 188,307 (149,136)
Accrued expenses and other
liabilities 14,988 557,255
------------ ------------
Cash generated from operations 63,482,133 57,388,954
Income taxes paid (429,875) (506,650)
------------ ------------
Net cash generated from operating
activities 63,052,258 56,882,304
------------ ------------
Cash flow from investing
activities
Purchase of property, plant
and equipment (A) (73,141,946) (91,434,470)
Interest received 444 131
------------ ------------
Net cash used in investing
activities (73,141,502) (91,434,339)
------------ ------------
Cash flow from financing
activities
Repayment of long term debt
from banks (34,222,000) (17,320,000)
Proceeds from long term
debt from banks - 42,155,045
Proceeds from issue of bond - 74,180,000
Proceeds from loans by related
parties 12,500,000 -
Payment of interest (17,884,032) (14,929,944)
------------ ------------
Net cash generated from financing
activities (39,606,032) 84,085,101
------------ ------------
Net decrease in cash and
cash equivalents (49,695,276) 49,533,066
Cash and cash equivalents
at the beginning of the year 61,081,916 12,251,533
Effects of exchange differences
on cash and cash equivalents 15,148 (702,683)
------------ ------------
Cash and cash equivalents
at the end of the year 11,401,788 61,081,916
------------ ------------
(A) The purchase of property, plant and equipment above,
includes additions to exploration and evaluation assets amounting
to US$ 28,719,544 (previous year: US$ 61,117,653) transferred to
development cost, as explained in Note 6.
(The accompanying notes are an integral part of these
consolidated financial statements)
Notes to Consolidated Financial Statements
(All amounts in United States Dollars, 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. 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 all the wells in SGL field as further
explained in Note 3).
2. GENERAL INFORMATION
The consolidated financial statements of the Group have been
prepared in accordance with International Financial Reporting
Standards ('IFRS') as adapted by the European Union ('EU'). The
consolidated financial statements have been prepared on a going
concern basis (refer to note 27), and are presented in United
States Dollar (US$). The functional currency of the Company as well
as its subsidiaries is US$.
3. JOINTLY CONTROLLED ASSETS
As explained above, the Group through its subsidiaries 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.
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 the above, gas production for the year ended 31
March 2017 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:
31 March 2017 31 March 2016
Non-current assets 639,862,170 562,441,955
Current assets 5,581,503 4,113,607
Non-current liabilities 1,321,033 1,132,726
Current liabilities 5,250,197 7,175,123
Expenses (net of finance
income) 11,456,179 10,187,655
Commitments NIL NIL
The GOI, through ONGC, has option to acquire similar
participating interest in any other successful discoveries of gas
reserves in the Block.
4. STANDARDS AND INTERPRETATIONS ISSUED BUT NOT EFFECTIVE AND YET TO BE APPLIED BY THE GROUP
Summarized 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 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
(IASB) issued the nal version of IFRS 9, Financial Instruments. The
standard reduces the complexity of the current rules on nancial
instruments as mandated in IAS 39. IFRS 9 has fewer classi cation
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 reclassi ed to pro t 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. Management is
currently evaluating the impact that this standard will have on its
consolidated financial statements.
-- IFRS 15 Revenue from contracts with customers
The IASB has published a new standard, IFRS 15 Revenue from
Contracts with customers on 28 May 2014. 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 recognizing 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 2018 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.
Management is currently evaluating the impact that this new
standard will have on its consolidated financial statements.
-- IFRS 16 Leases
On January 13, 2016, the IASB issued the final version of IFRS
16, Leases. IFRS 16 will replace the existing leases Standard, IAS
17 Leases, and related interpretations. The standard sets out the
principles for the recognition, measurement, presentation and
disclosure of leases. IFRS 16 introduces a single lessee accounting
model and requires a lessee to recognize assets and liabilities for
all leases with a term of more than 12 months, unless the
underlying asset is of low value. The Standard also contains
enhanced disclosure requirements for lessees. The effective date
for adoption of IFRS 16 is annual periods beginning on or after
January 1, 2019 (but not yet endorsed in EU), though early adoption
is permitted for companies applying IFRS 15 Revenue from Contracts
with Customers.
Management is currently evaluating the impact that this new
standard will have on its consolidated financial statements.
5. SUMMARY OF ACCOUNTING POLICIES
The consolidated financial statements have been prepared on a
historical basis, except where specified below. A summary of the
significant accounting policies applied in the preparation of the
accompanying consolidated financial statements are detailed
below:
5.1. BASIS OF CONSOLIDATION
The consolidated financial statements include the financial
statements of the parent company and all of its subsidiary
undertakings drawn up to 31 March 2017. The Group consolidates
entities which it controls. Control exists when the parent has
power over the entity, is exposed, or has rights, to variable
returns from its involvement with the entity and has the ability to
affect those returns by using its power over the entity. Power is
demonstrated through existing rights that give the ability to
direct relevant activities, those which significantly affect the
entity's returns.
The Group recognises in relation to its interest in a joint
operation:
a. its assets, including its share of any assets held jointly;
b. its liabilities, including its share of any liabilities incurred jointly;
c. its revenue from the sale of its share of the output arising from the joint operation;
d. its share of the revenue from the sale of the output by the joint operation; and
e. its expenses, including its share of any expenses incurred jointly.
Intra-Group balances and transactions, and any unrealised gains
and losses arising from intra-Group transactions are eliminated in
preparing the consolidated financial statements. Amounts reported
in the financial statements of subsidiaries have been adjusted
where necessary to ensure consistency with the accounting policies
adopted by the Group.
Profit or losses of subsidiaries acquired or disposed of during
the year are recognised from the date of control of acquisition, or
up to the effective date of disposal, as applicable.
5.2. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
In preparing consolidated financial statements, the Group's
management is required to make judgments, estimates and assumptions
that affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date of the
financial statement and the reported amounts of revenues and
expenses during the reporting period. Although these estimates are
based on management's best knowledge of current events and actions,
actual results may ultimately differ from those estimates. The
management's estimates for the useful life and residual value of
tangible assets, impairment of tangible and intangible assets and
recognition of provision for decommissioning represent certain
particularly sensitive estimates. The estimates and underlying
assumptions are reviewed on an on-going basis. Revisions to
accounting estimates are recognized in the period in which the
estimate is revised if the revision affects only that period or in
the period of the revision and future periods if the revision
affects both current and future periods. Information about
significant judgments, estimates and assumptions that have the most
significant effect on recognition and measurement of assets,
liabilities, revenues and expenses is provided in note 26.
5.3. FOREIGN CURRENCIES
The consolidated financial statements have been presented in US$
which is the functional currency of the group entities
Foreign currency transactions are translated into the functional
currency of the respective Group entities, using the exchange rates
prevailing at the dates of the transactions (spot exchange rate).
Functional currency is the currency of the primary economic
environment in which the entity operates.
Foreign exchange gains and losses resulting from the settlement
of such transactions and from the re-measurement of monetary items
at year-end exchange rates are recognised in the profit or loss for
the year.
Non-monetary items measured at historical cost are recorded in
the functional currency of the entity using the exchange rates at
the date of the transaction.
5.4. REVENUE RECOGNITION
Revenue from the sale of natural gas and condensate production
(a by- product) is recognised when the significant risks and
rewards of ownership have been transferred, which is when title
passes, to the customer. This occurs when the product is physically
transferred into a vessel, pipe or other delivery mechanism.
Revenue is stated after deducting sales taxes, excise duties and
similar levies.
Per the 'Take-or-Pay' agreement, GAIL (India) Limited ('GAIL' or
the 'customer') is committed towards taking a certain minimum
quantity of gas and paying for any related shortfall. The Group's
entitlement to receive revenue for any shortfall is recorded as
trade receivables with a corresponding credit to deferred revenue.
Until the expiry of the contracted period, the Group continues to
have an obligation to deliver the deficit to GAIL. Revenue for the
deficit quantity would be recognised at the earlier of delivery of
physical quantity towards the deficit to GAIL or at the expiry of
the contract period. Deferred revenue represents amounts
received/due from GAIL for which gas is yet to be delivered.
5.5. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprises Development assets and
other properties, plant and equipments used in the gas fields and
for administrative purposes. These assets are stated at cost plus
decommissioning cost less accumulated depreciation and any
accumulated impairment losses.
Development assets are accumulated on a field by field basis and
comprise costs of developing the commercially feasible reserve,
expenditure on the construction, installation or completion of
infrastructure facilities such as platforms, pipelines and other
costs of bringing such reserves into production. It also includes
the exploration and evaluation costs incurred in discovering the
commercially feasible reserve, which have been transferred from the
exploration and evaluation assets as per the policy mentioned in
note 5.6. As consistent with the full cost method, all exploration
and evaluation expenditure incurred up to the date of the
commercial discovery have been classified under development assets
of that field.
The carrying values of property, plant and equipment are
reviewed for impairment when events or changes in circumstances
indicate that the carrying values may not be recoverable.
An item of property, plant and equipment is derecognized upon
disposal or when no future economic benefits are expected from its
use or disposal. Any gain or loss arising on de-recognition of the
asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the
profit or loss of the year in which the asset is derecognized.
However, where the asset is being consumed in developing
exploration and evaluation intangible assets, such gain or loss is
recognized as part of the cost of the intangible asset.
The asset's residual values, useful lives and depreciation
methods are reviewed, and adjusted if appropriate, at each period
end. No depreciation is charged on development assets until
production commences.
Depreciation on property, plant and equipment is provided at
rates estimated by the management. Depreciation is computed using
the straight line method of depreciation, whereby each asset is
written down to its estimated residual value evenly over its
expected useful life. The useful lives estimated by the management
are as follows:
Extended well test equipment 20 years
Bunk houses 5 years
Vehicles 5 years
Other assets
Furniture and fixture 5 years
Buildings 10 years
Computer equipment 3 years
Other equipment 5 years
Land acquired is recognized at cost and no depreciation is
charged as it has an unlimited useful life.
Production assets are depreciated from the date of commencement
of production, on a field by field basis with reference to the unit
of production method for the commercially probable and proven
reserves in the particular field.
Advances paid for the acquisition/ construction of property,
plant and equipment which are outstanding as at the end of the
reporting period and the cost of property, plant and equipment
under construction before such date are disclosed as 'Capital
work-in-progress'.
5.6. EXPLORATION AND EVALUATION ASSETS
The Group adopts the full cost method of accounting for its oil
and gas interests, having regard to the requirements of IFRS 6:
Exploration for and Evaluation of Mineral Resources. Under the full
cost method of accounting, all costs of exploring for and
evaluating oil and gas properties, whether productive or not are
accumulated and capitalized by reference to appropriate cost pools.
Such cost pools are based on geographic areas and are not larger
than a segment. The Group currently has one cost pool being an area
of land located in Rajasthan, India.
Exploration and evaluation costs may include costs of license
acquisition, directly attributable exploration costs such as
technical services and studies, seismic data acquisition and
processing, exploration drilling and testing, technical
feasibility, commercial viability costs, finance costs to the
extent they are directly attributable to financing these activities
and an allocation of administrative and salary costs as determined
by management. All costs incurred prior to the award of an
exploration license are written off as a loss in the year
incurred.
Exploration and evaluation costs are classified as tangible or
intangible according to the nature of the assets acquired and the
classification is applied consistently. Tangible exploration and
evaluation assets are recognised and measured in accordance with
the accounting policy on property, plant and equipment. To the
extent that such a tangible asset is consumed in developing an
intangible exploration and evaluation asset, the amount reflecting
that consumption is recorded as part of the cost of the intangible
asset.
Exploration and evaluation assets are not amortised prior to the
conclusion of appraisal activities. Where technical feasibility and
commercial viability is demonstrated, the carrying value of the
relevant exploration and evaluation asset is reclassified as a
development and production asset and tested for impairment on the
date of reclassification. Impairment loss, if any, is
recognized.
5.7. IMPAIRMENT TESTING FOR EXPLORATION AND EVALUATION ASSETS AND PROPERTY, PLANT AND EQUIPMENT
An impairment loss is recognized for the amount by which an
asset's or cash-generating unit's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of fair
value, reflecting market conditions less costs to sell, and value
in use based on an internal discounted cash flow evaluation.
Where there are indicators that an exploration asset may be
impaired, the exploration and evaluation assets are grouped with
all development/producing assets belonging to the same geographic
segment to form the Cash Generating Unit (CGU) for impairment
testing. Where there are indicators that an item of property, plant
and equipment asset is impaired, assets are grouped at the lowest
levels for which there are separately identifiable cash flows to
form the CGU. The combined cost of the CGU is compared against the
CGU's recoverable amount and any resulting impairment loss is
written off in the profit or loss of the year. No impairment has
been recognized during the year.
An assessment is made at each reporting date as to whether there
is any indication that previously recognized impairment losses may
no longer exist or may have decreased. If such indication exists,
the Group estimates the asset's or CGU's recoverable amount. A
previously recognized impairment loss is reversed only if there has
been a change in the assumptions used to determine the asset's
recoverable amount since the last impairment loss was recognized.
The reversal is limited so that the carrying amount of the asset
does not exceed its recoverable amount, nor exceed the carrying
amount that would have been determined, net of depreciation, had no
impairment loss been recognized for the asset in prior years. Such
reversal is recognized in profit or loss unless the asset is
carried at a re-valued amount, in which case the reversal is
treated as a revaluation increase.
5.8. FINANCIAL ASSETS
Financial assets and financial liabilities are recognized on the
Group's Statement of Financial Position when the Group has become a
party to the contractual provisions of the related instruments.
Financial assets of the Group, under the scope of IAS 39
'Financial Instruments: Recognition and Measurement' fall into the
category of loans and receivables. When financial assets are
recognized initially, they are measured at fair value plus
transaction costs. The Group determines the classification of its
financial assets at initial recognition.
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active
market. Such assets are subsequently carried at amortised cost
using the effective interest method, less provision for impairment.
Gains and losses are recognized in profit or loss when the loans
and receivables are derecognized or impaired, as well as through
the amortization process.
Loans and receivables are assessed for indicators of impairment
at the end of each reporting period. Loans and receivables are
considered to be impaired when there is objective evidence that, as
a result of one or more events that occurred after the initial
recognition, the estimated future cash flows have been
affected.
De-recognition of loans and receivables occur when the rights to
receive cash flows from the instrument expire or are transferred
and substantially all of the risks and rewards of ownership have
been transferred.
5.9. FINANCIAL LIABILITIES
The Group's financial liabilities include debts, trade and other
payables and loans from related parties.
Financial liabilities are recognised when the Group becomes a
party to the contractual agreements of the related instrument.
Financial liabilities are recognised at their fair value less
transaction costs and subsequently measured at amortised cost less
settlement payments. Amortised cost is computed using the effective
interest method.
Trade and other payables and loans from related parties are
interest free financial liabilities with maturity period of less
than twelve months and are carried at a transaction value that is
not materially different from their fair value.
A financial liability is derecognised when the obligation under
the liability is discharged or cancelled or expires.
5.10. INVENTORIES
Inventories are measured at the lower of cost and net realisable
value. Inventories of drilling stores and spares are accounted at
cost including taxes, duties and freight. The cost of all
inventories other than drilling bits is computed on the basis of
the first in first out method. The cost for drilling bits is
computed based on specific identification method.
5.11. SHARE BASED PAYMENTS
The Group operates equity-settled share-based plans for its
employees, directors, consultants and advisors. Where persons are
rewarded using share-based payments, the fair values of services
rendered by employees and others are determined indirectly by
reference to the fair value of the equity instruments granted. This
fair value is appraised using the Black Scholes model at the
respective measurement date. In the case of employees and others
providing services, the fair value is measured at the grant date.
The fair value excludes the impact of non-market vesting
conditions. All share-based remuneration is recognised as an
expense in profit or loss with a corresponding credit to 'Share
Option Reserve'.
If vesting periods or other vesting conditions apply, the
expense is allocated over the vesting period, based on the best
available estimate of the number of share options expected to vest.
Non-market vesting conditions are included in assumptions about the
number of options that are expected to become exercisable.
Estimates are subsequently revised, if there is any indication that
the number of share options expected to vest differs from previous
estimates and any impact of the change is recorded in the year in
which that change occurs.
In addition where the effect of a modification leads to an
increase in the fair value of the options granted, such increase
will be accounted for as an expense immediately or over the period
of the respective grant.
Upon exercise of share options, the proceeds received up to the
nominal value of the shares issued are allocated to share capital
with any excess being recorded as additional paid-in capital.
5.12. ACCOUNTING FOR INCOME TAXES
Income tax assets and/or liabilities comprise those obligations
to, or claims from, fiscal authorities relating to the current or
prior reporting period that are unpaid / un-recovered at the date
of the Statement of Financial Position. They are calculated
according to the tax rates and tax laws applicable to the fiscal
periods to which they relate, based on the taxable profit for the
year. All changes to current tax assets or liabilities are
recognised as a component of tax expense in profit or loss.
Deferred income taxes are calculated using the balance sheet
method on temporary differences. This involves the comparison of
the carrying amounts of assets and liabilities in the financial
statement with their tax base. Deferred tax is, however, neither
provided on the initial recognition of goodwill, nor on the initial
recognition of an asset or liability unless the related transaction
is a business combination or affects tax or accounting profit. Tax
losses available to be carried forward as well as other income tax
credits to the Group are assessed for recognition as deferred tax
assets.
Deferred tax liabilities are always provided for in full.
Deferred tax assets are recognised to the extent that it is
probable that they will be offset against future taxable income.
Deferred tax assets and liabilities are calculated, without
discounting, at tax rates and laws that are expected to apply to
their respective period of realization, provided they are enacted
or substantively enacted at the date of the statement of financial
position.
Changes in deferred tax assets or liabilities are recognised as
a component of tax expense in profit or loss of the year, except
where they relate to items that are charged or credited directly to
other comprehensive income or equity in which case the related
deferred tax is also charged or credited directly to other
comprehensive income or equity.
5.13. BORROWING COSTS
Any interest payable on funds borrowed for the purpose of
obtaining qualifying assets, which are assets that necessarily take
a substantial period of time to get ready for their intended use or
sale, is capitalised as a cost of that asset until such time as the
assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific
borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalisation.
Any associated interest charge from funds borrowed principally
to address a short-term cash flow shortfall during the suspension
of development activities is expensed in the period.
Transaction costs incurred towards an un-utilised debt facility
are treated as prepayments to be adjusted against the carrying
value of debt as and when drawn.
5.14. CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash in hand, at bank in
demand deposits and deposit with maturities of 3 months or less
from inception, which are readily convertible to known amounts of
cash. These assets are subject to an insignificant risk of change
in value. Cash and cash equivalents are classified as loans and
receivables under the financial instruments category.
5.15. LEASING ACTIVITIES
Finance leases which transfer substantially all the risks and
benefits incidental to ownership of the leased item, are
capitalised at the inception of the lease, at the fair value of the
leased property or the present value of the minimum lease payments,
whichever is lower.
Lease payments are apportioned between the finance charges and
reduction of the lease liability so as to achieve a constant rate
of interest on the remaining balance of the liability. Finance
charges are charged directly in profit or loss of the year.
All leases other than finance leases are treated as operating
leases. Operating lease payments are recognised as an expense in
profit or loss on the straight line basis over the lease term.
Where the lease payments in respect of operating leases are made
for exploration and evaluation activities or development and
production activities, these are capitalized as part of the cost of
these assets.
5.16. OTHER PROVISIONS AND CONTINGENT LIABILITIES
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past event. It
is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. Where the
Group expects some or all of a provision to be reimbursed, for
example under an insurance contract, the reimbursement is
recognised as a separate asset but only when the reimbursement is
virtually certain. The expense relating to any provision net of any
reimbursement is recognized in profit or loss of the year. To the
extent such expense is incurred for construction or development of
any asset, it is included in the cost of that asset. If the effect
of the time value of money is material, provisions are determined
by discounting the expected future cash flows at a pre-tax rate
that reflects current market assessments of the time value of money
and, where appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due to the
passage of time is recognised as other finance expenses.
Provisions include decommissioning provisions representing
management's best estimate of the Group's liability for restoring
the sites of drilled wells to their original status. Provision for
decommissioning is recognised when the Group has an obligation and
a reliable estimate can be made. The amount recognised is the
present value of the estimated future expenditure. A corresponding
item of property, plant and equipment of an amount equivalent to
the provision is also recognised and is subsequently depreciated as
part of the asset. The unwinding discount is recognised as a
finance cost.
Commitments and contingent liabilities are not recognised in the
financial statements. They are disclosed unless the possibility of
an outflow of resources embodying economic benefits is remote.
A contingent asset is not recognised but disclosed in the
financial statements when an inflow of economic benefits is
probable but when it is virtually certain than the asset is
recognised in the financial statements.
In those cases where the possible outflow of economic resource
as a result of present obligations is considered improbable or
remote, or the amount to be provided for cannot be measured
reliably, no liability is recognised in the statement of financial
position and no disclosure is made.
5.17. 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.
(This space has been intentionally left blank)
6. INTANGIBLE ASSETS : EXPLORATION AND EVALUATION ASSETS
Intangible assets comprise of exploration and evaluation assets.
Movement in intangible assets is as below:
Intangible assets:
Exploration and
Evaluation assets
-------------------------------- ----------------------------
Balance as at 1 April 2015 -
Additions (A) 61,117,653
Transfer to development assets
(B) (61,117,653)
Balance as at 31 March 2016 -
Additions (A) 28,719,544
Transfer to development assets
(B) (28,719,544)
----------------------------
Balance as at 31 March 2017 -
----------------------------
(A) The above includes borrowing costs of US$ 859,043 (previous
year: US$ 2,034,442). The weighted average capitalisation rate on
funds borrowed generally is 6.17 per cent per annum (previous year:
5.84 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.
7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise of the following:
Cost Land Extended Development Bunk Vehicles Other Capital Total
well /Production Houses assets work-in-progress
test assets
equipment
--------------------- -------- ---------- ------------ ---------- ---------- ---------- ----------------- ------------
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/transfers - - 89,444,612 - - 13,541 38,116 89,496,269
Disposals/transfers - - - - - - - -
--------------------- -------- ---------- ------------ ---------- ---------- ---------- ----------------- ------------
Balance as at 31
March 2016 167,248 3,737,654 580,789,054 5,917,523 4,576,803 1,506,289 1,227,969 597,922,540
--------------------- -------- ---------- ------------ ---------- ---------- ---------- ----------------- ------------
Additions/transfers - 382,389 88,090,155 9,397 157,816 70,687 89,939 88,800,383
Disposals/transfers - - - - - - - -
Balance as at 31
March 2017 167,248 4,120,043 668,879,209 5,926,920 4,734,619 15,76,976 1,317,908 686,722,923
--------------------- -------- ---------- ------------ ---------- ---------- ---------- ----------------- ------------
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 year - 260,108 9,374,247 498,262 623,283 92,887 - 10,848,787
-------- ---------- ------------ ---------- ---------- ---------- ------------
Balance as at 31
March 2016 - 1,629,759 23,880,916 5,015,047 3,502,013 1,452,850 - 35,480,585
--------------------- -------- ---------- ------------ ---------- ---------- ---------- ----------------- ------------
Depreciation for
the year - 240,855 10,352,335 373,561 365,785 47,632 - 11,380,168
-------- ---------- ------------ ---------- ---------- ---------- ------------
Balance as at 31
March 2017 - 1,870,614 34,233,251 5,388,608 3,867,798 1,500,482 - 46,860,753
--------------------- -------- ---------- ------------ ---------- ---------- ---------- ----------------- ------------
Carrying values
At 31 March 2016 167,248 2,107,895 556,908,138 902,476 1,074,790 53,439 1,227,969 562,441,955
At 31 March 2017 167,248 2,249,429 634,645,958 538,312 866,821 76,494 1,317,908 639,862,170
--------------------- -------- ---------- ------------ ---------- ---------- ---------- ----------------- ------------
The balances above represent the Group's share in property,
plant and equipment as per Note 3.
Tangible assets comprise development /production assets in
respect of SGL field and development assets in respect of SSF and
SSG field.
Development assets of SGL field includes the amount of
exploration and evaluation expenditure transferred to development
cost on the date of the first commercial discovery declared by the
Group in 2012 and also includes expenditure incurred for the
drilling of further wells in the SGL field to enhance the
production activity. Production assets in respect of SGL field
includes completed production facilities and under construction Gas
gathering station - 2. The Group commenced the production facility
in October 2012, and accordingly such production assets have been
depreciated since this date.
Development assets of SSF and SSG are explained in note 6. The
assessment of these reserves by the Directorate General of
Hydrocarbons, ONGC, the Government of India and the Ministry of
Petroleum and Natural Gas has been received by the company post 31
March 2017 hence pending the development for production activities,
no depreciation has been charged on the same.
The additions in Development/Production assets also include
borrowing costs US$ 27,753,096 (previous year: US$ 23,304,470)
(including the amount stated in note 6 above). The weighted average
capitalisation rate on funds borrowed generally is 6.17 per cent
per annum (previous year 5.84 per cent).
The depreciation has been included in the following
headings-
31 March 31 March
2017 2016
----------------------------- --------------- --------------
Depreciation included in
development assets 1,027,833 1,474,540
Depreciation included in
statement of comprehensive
income under the head cost
of sales 10,352,335 9,374,247
Total 11,380,168 10,848,787
------------------------------ --------------- --------------
8. DEFERRED TAX ASSETS/ LIABILITIES (NET)
Deferred taxes arising from temporary differences are summarized
as follows:
31 March 31 March
2017 2016
------------------------------------ ------------ ------------
Deferred tax assets
Unabsorbed losses/credits 215,699,664 199,258,525
Total 215,699,664 199,258,525
Deferred tax liability
Development assets/ property,
plant and equipment 274,547,778 239,704,056
Total 274,547,778 239,704,056
Net deferred tax liabilities 58,848,114 40,445,531
-------------------------------------- ------------ ------------
a) The Group has recognized deferred tax assets on all of its
unused tax losses/unabsorbed depreciation considering there is
convincing evidence of availability of sufficient taxable profit in
the Group in the future as summarized in note 9.
b) The deferred tax movements during the current year have been
recognized in the Consolidated Statement of Comprehensive
income
9. INCOME TAXES
Income tax is based on the tax rates applicable on profit or
loss in various jurisdictions in which the Group operates. The
effective tax at the domestic rates applicable to profits in the
country concerned as shown in the reconciliation below have been
computed by multiplying the accounting profit by the effective tax
rate in each jurisdiction in which the Group operates. The
individual entity amounts have then been aggregated for the
consolidated financial statements. The effective tax rate applied
in each individual entity has not been disclosed in the tax
reconciliation below as the amounts aggregated for individual Group
entities would not be a meaningful number.
Income tax credit is arising on account of the following:
31 March 2017 31 March
2016
-------------------------- ------------------------------ ----------------
Current tax - -
Deferred tax charge (18,402,583) (14,000,208)
Total (18,402,583) (14,000,208)
-------------------------- ------------------------------ ----------------
The relationship between the expected tax expense based on the
domestic tax rates for each of the legal entities within the Group
and the reported tax expense in profit or loss is reconciled as
follows:
31 March 2017 31 March
2016
Accounting profit for the
year before tax 43,785,891 29,705,711
Effective tax at the domestic
rates applicable to profits
in the country concerned 18,941,776 12,850,690
Impact of change in tax rate
on deferred tax - 252,699
Non allowable expenses/(Non-taxable
income) (539,193) 896,819
Tax expense 18,402,583 14,000,208
------------------------------------------ -------------- -----------
The reconciliation shown above has been based on the rate 43.26
per cent (previous year: 43.26 per cent) as applicable under Indian
tax laws.
The Company's 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 utilization of such losses in the future
years and thus a deferred tax asset has been created in respect of
these.
10. INVENTORIES
Inventories comprise the following:
31 March 2017 31 March
2016
------------------------- ------------------------- ----------
Drilling and production
stores and spares 4,344,244 3,503,608
Fuel 31,665 15,521
Goods in transit 1,205,594 594,478
Total 5,581,503 4,113,607
------------------------- ------------------------- ----------
The above inventories are held for use in the exploration,
development and production activities. These are valued at cost
determined based on policy explained in paragraph 5.10.
Inventories of US$ 169,331 (previous year: US$ 254,090) were
recorded as an expense under the heading 'cost of sales' in the
consolidated statement of comprehensive income during the year
ended 31 March 2017.
Inventories of US$ 7,037,963 (previous year: US$ 8,908,991) were
capitalized as part of exploration and evaluation assets and
development assets.
11. OTHER CURRENT ASSETS
31 March 2017 31 March
2016
------------- -------------- ----------
Prepayments 38,784 238,879
Total 38,784 238,879
------------- -------------- ----------
12. CASH AND CASH EQUIVALENTS
31 March 2017 31 March
2016
-------------------------- -------------- -----------
Cash at banks in current
accounts 11,401,788 61,081,916
--------------------------
Total 11,401,788 61,081,916
-------------------------- -------------- -----------
The Group only deposits cash surpluses with major banks of high
quality credit standing.
13. EQUITY
Authorised share capital
The total authorised share capital of the Company is GBP
5,000,000 divided into 500,000,000 shares of GBP 0.01 each. The
total number of shares issued by the Company as at 31 March 2017 is
182,973,924 (previous year: 182,973,924).
--For all matters submitted to vote in the shareholders meeting
of the Company, every holder of ordinary shares, as reflected in
the records of the Company on the date of the shareholders' meeting
has one vote in respect of each share held.
All shareholders are equally eligible to receive dividends and
the repayment of capital in the event of liquidation of the
individual entities of the Group.
Additional paid in capital
Additional paid-in capital represents excess over the par value
of share capital paid in by shareholders in return for the shares
issued to them, recorded net of expenses incurred on issue of
shares.
Currency translation reserve
Currency translation reserve represents the balance of
translation of the entities financial statements into US$ until 30
November 2010 when its functional currency was assessed as GBP.
Subsequent to 1 December 2010, the functional currency of Indus Gas
was reassessed as US$.
Merger reserve
The balance on the merger reserve represents the fair value of
the consideration given in excess of the nominal value of the
ordinary shares issued in an acquisition made by the issue of
shares of subsidiaries from other entities under common
control.
Share option reserve
The amount of share option reserve represents the accumulated
expense recognised by the company in its consolidated statement of
comprehensive income on account of share based options given by the
Company.
Retained earning
Retained earnings include current and prior period retained
profits.
14. LONG TERM DEBT
From Banks
Maturity 31 March 31 March
2017 2016
-------------------------- ----------- -------------- --------------
Non-current portion of
long term debt 2018/2024 168,252,860 210,454,996
Current portion of long
term debt from banks 44,069,933 34,932,179
Total 212,322,793 245,387,175
-------------------------- ----------- -------------- --------------
Current interest rates are variable and weighted average
interest for the year was 5.96 per cent per annum (previous year:
5.80 per cent per annum). The fair value of the above variable rate
borrowings are considered to approximate their carrying amounts.
The maturity profile (undiscounted) is explained in note 29.
Interest capitalised on loans above have been disclosed in notes
6 and 7.
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 31 March 31 March
2017 2016
------------------------- ---------- ----------- -----------
Non-current portion of
long term debt 2018 71,394,500 73,324,297
Current portion of long
term debt 2,544,421 2,624,560
Total 73,938,921 75,948,857
------------------------------------- ----------- -----------
During the period ended 31 March 2016, the Group has issued
Singapore Dollar ("SGD") 100 million (USD 74.18 million) notes
under the US$ 300 million MTN programme 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 3 years i.e. April 2018,
further interest on these notes is paid semi-annually.
15. PROVISION FOR DECOMMISSIONING
Provision
for decommissioning
----------------------------- ---------------------
Balance at 1 April 2015 1,281,862
Decrease in provision (149,136)
Balance as at 31 March 2016 1,132,726
Increase in provision 188,307
Balance as at 31 March 2017 1,321,033
----------------------------- ---------------------
As per the PSC, the Group is required to carry out certain
decommissioning activities on gas wells. The provision for
decommissioning relates to the estimation of future disbursements
related to the abandonment and decommissioning of gas wells. The
provision has been estimated by the Group's engineers, based on
individual well filling and coverage. This provision will be
utilised when the related wells are fully depleted. The majority of
the cost is expected to be incurred within a period of next 8
years. The discount factor being the risk adjusted rate related to
the liability is estimated to be 9 per cent for the year ended 31
March 2017 (previous year: 8 per cent).
16. PAYABLE TO RELATED PARTIES
Related parties payable comprise the following:
Maturity 31-Mar-17 31-Mar-16
----------------------- ----------- ------------ ------------
Current
Liability payable to
Focus On demand 5,250,197 6,916,510
Payable to directors On demand 320,425 258,613
5,570,622 7,175,123
Other than current
Borrowings from Gynia
Holdings Ltd.* 149,071,994 128,107,609
149,071,994 128,107,609
Total 154,642,616 135,282,732
------------------------------------ ------------ ------------
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.
* Borrowings from Gynia Holdings Ltd. carries interest rate of
6.5 per cent per annum compounded annually. The entire outstanding
balance (including interest) is 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.
Interest capitalised on loans above have been disclosed in notes
6 and 7.
17. OTHER OPERATING INCOME
The Company's subsidiaries decided to enter into the business of
leasing Rig/Drillship for oil and gas exploration and Production
activities and entered into contracts for purchase of drillship and
rig. The counter party to the respective contracts failed on their
commitment to timely deliver the rig and Drillship consequently, in
accordance with terms of the respective contracts, the Company
received compensation amounting to US$ 15.5 million for loss of
profit on account of cancellation of contracts. This income is
recorded as other operating income in the consolidated financial
statements.
18. EMPLOYEE COST
Costs pertaining to the employees of Focus have been included in
the cost of sales and administrative expenses in the consolidated
statement of comprehensive income amounting to
US$ 327,733 (previous year US$ 324,428) and US$ 473,106
(previous year US$ 532,756) respectively. Cost pertaining to the
employees of the Group have been included under administrative
expense is US$ 449,778 (previous year US$ 621,455).
19. FOREIGN CURRENCY EXCHANGE (LOSS)/ GAIN, NET
The Group has recognized the following in the profit or loss on
account of foreign currency fluctuations:
31 March 31 March
2017 2016
----------------------------------- ---------- ----------
Gain/ (Loss) on restatement
of foreign currency monetary
receivables and payables 2,260,762 (702,683)
Gain/(loss) arising on settlement
of foreign currency transactions
and restatement of foreign
currency balances arising
out of Oil block operations 15,148 336,253
Total 2,275,910 (366,430)
----------------------------------- ---------- ----------
20. OPERATING LEASES
Lease payments capitalised under exploration and evaluation
assets and development/ production assets during the year ended 31
March 2017 amount to US$ 40,298,219 (previous year US$ 45,601,638).
No sublease payments or contingent rent payments were made or
received. No sublease income is expected as all assets held under
lease agreements are used exclusively by the Group. All the
operating leases of the Group can be cancelled and there are no
future minimum payments for the existing operating leases. The
terms and conditions of these operating leases do not impose any
significant financial restrictions on the Group.
21. Share based payment
The Company maintained an equity settled share-based payment
scheme adopted and approved by the directors on 29 May 2008.
Vesting of these options have completed in earlier years and there
is no expense in respect of these options during the years ended 31
March 2017 and 31 March 2016. All share options granted to
directors and advisors of the Company and Arden Partners have
expired in June 2015 and the Company has no legal or constructive
obligation to repurchase or settle the options hence the amount of
share option reserve has been transferred to retained earnings
during the year ended 31 March 2016.
22. EARNINGS PER SHARE
The calculation of the basic earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the year.
Calculation of basic and diluted earnings per share is as
follows:
31 March 2017 31 March 2016
------------------------------ -------------- --------------
Profits attributable to
shareholders of Indus Gas
Limited, for basic and
dilutive 25,383,308 15,705,503
Weighted average number
of shares (used for basic
earnings per share) 182,973,924 182,973,924
Diluted weighted average
number of shares (used
for
Diluted earnings per share) 182,973,924 182,973,924
Basic earnings per share 0.14 0.09
Diluted earnings per share 0.14 0.09
------------------------------ -------------- --------------
23. 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 Multi Asset Holdings Ltd.
Company (Holding Company of Gynia
Holdings Ltd.)
III. Enterprises over Focus Energy Limited
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 at 31 March 2017 and 31 March 2016
is as under:
Transactions with holding company
Particulars 31 March 31 March
2017 2016
------------------------------ ------------ ------------
Transactions during the year
with the holding company
Amount received 12,500,000 -
Interest 8,464,385 7,818,774
Balances at the end of the
year
Total payable* 149,071,994 128,107,609
------------------------------ ------------ ------------
*including interest
Transactions with KMP and entity over which KMP exercise
control
Particulars 31-Mar-17 31-Mar-16
---------------------------------- ----------- -----------
Transactions during the year
Remuneration to KMP
Short term employee benefits 449,778 621,455
Total 449,778 621,455
Entity over which KMP exercise
control
Cost incurred by Focus on behalf
of the Group in respect of
the Block 65,122,032 64,768,570
Remittances to Focus 66,426,722 82,020,937
Balances at the end of the
year
Total payable* 5,570,622 6,824,887
---------------------------------- ----------- -----------
*including interest
Directors' remuneration
Directors' remuneration is included under administrative
expenses, evaluation and exploration assets or development assets
in the consolidated financial statements allocated on a systematic
and rational manner.
Remuneration by director is also separately disclosed in the
directors' report on page 10.
24. SEGMENT REPORTING
The Chief Operating Decision Maker being the Chief Executive
Officer of the Group, reviews the business as one operating segment
being the extraction and production of gas. Hence, no separate
segment information has been furnished herewith.
All of the non-current assets other than financial instruments
and deferred tax assets (there are no employment benefit assets and
rights arising under insurance contracts) are located in India and
amounted to US$ 639,863,055 (previous year: US$ 562,442,840).
The Group has a product natural gas and its by-product i.e.
condensate. The natural gas is supplied to a single customer, GAIL,
in a single geographical segment, being India. Sale of by product
is not significant to be classified as separate reportable
segment.
25. COMMITMENTS AND CONTINGENCIES
The Group has no contingent liabilities as at 31 March 2017
(previous year Nil).
The Group has no commitments as at 31 March 2017 (previous year
Nil).
26. ACCOUNTING ESTIMATES AND JUDGEMENTS
In preparing consolidated financial statements, the Group's
management is required to make judgments and estimates that affect
the reported amounts of assets and liabilities and the disclosure
of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during
the reporting period. The judgments and estimates are based on
management's best knowledge of current events and actions and
actual results from those estimates may ultimately differ.
Significant judgments applied in the preparation of the
consolidated financial statements are as under:
Determination of functional currency of individual entities
Following the guidance in IAS 21 "The effects of changes in
foreign exchange rates" the functional currency of each individual
entity is determined to be the currency of the primary economic
environment in which the entity operates. In the management's view
each of the individual entity's functional currency reflects the
transactions, events and conditions under which the entity conducts
its business. The management believes that US$ has been taken as
the functional currency for each of the entities within the Group.
US$ is the currency in which each of these entities primarily
generate and expend cash and also generate funds for financing
activities.
Full cost accounting for exploration and evaluation
expenditure
The Group has followed 'full cost' approach for accounting
exploration and evaluation expenditure against the 'successful
efforts' method. As further explained in Note 5.6 and 6,
exploration and evaluation assets recorded using 'full cost'
approach are tested for impairment prior to reclassification into
development assets on successful discovery of gas reserves.
Impairment of tangible assets
The Group follows the guidance of IAS 36 and IFRS 6 to determine
when a tangible asset is impaired. This determination requires
significant judgment to evaluate indicators triggering impairment.
The Group monitors internal and external indicators of impairment
relating to its tangible assets. The management has assessed that
no such indicators have occurred or exists as at 31 March 2017 to
require impairment testing of property, plant and equipment.
Estimates used in the preparation of the consolidated financial
statements
Useful life and residual value of tangible assets
The Group reviews the estimated useful lives of property, plant
and equipment at the end of each annual reporting period.
Specifically, production assets are depreciated on a basis of unit
of production (UOP) method which involves significant estimates in
respect of the total future production and estimate of reserves.
The calculation of UOP rate of depreciation could be impacted to
the extent that the actual production in future is different from
the forecasted production. During the financial year, the directors
determined that no change to the useful lives of any of the
property, plant and equipment is required. The carrying amounts of
property, plant and equipment have been summarised in note 7.
Recognition of provision for decommissioning cost
As per the PSC, the Group is required to carry out certain
decommissioning activities on gas wells. The ultimate
decommissioning costs are uncertain and cost estimates can vary in
response to many factors including changes to relevant legal
requirements, the emergence of new restoration techniques or
experience at other production sites. The expected timing and
amount of expenditure can also change, for example, in response to
changes in reserves or changes in laws and regulations or their
interpretation. As a result, there could be adjustments to the
provisions established which would affect future financial results.
The liabilities estimated in respect of decommissioning provisions
have been summarised in note 15.
Impairment testing
As explained above, management carried out impairment testing of
property, plant and equipment of the Block on 19 November 2013 on
submission of integrated declaration of commerciality report by
Focus Energy Limited to the Directorate General of Hydrocarbons,
ONGC, the Government of India and the Ministry of Petroleum and
Natural Gas. An impairment loss is recognized for the amount by
which the asset's or cash generating unit's carrying amount exceeds
its recoverable amount. To determine the recoverable amount,
management estimates expected future cash flows from the Block and
determines a suitable interest rate in order to calculate the
present value of those cash flows. In the process of measuring
expected future cash flows management makes assumptions about
future gross profits. These assumptions relate to future events and
circumstances. In most cases, determining the applicable discount
rate involves estimating the appropriate adjustment to market risk
and the appropriate adjustment to asset-specific risk factors.
The recoverable amount was determined based on value-in-use
calculations, basis gas reserves confirmed by an independent
competent person. Selling price of the gas is based on selling
price to GAIL which has been agreed for a period of three years
which has expired on September 2016 (the Company is presently in
negotiations with GAIL for increase in gas price) The discount rate
calculation is based on the Company's weighted average cost of
capital adjusted to reflect pre-tax discount rate and amounts to 9%
p.a. Management believes that no reasonably possible changes in the
assumptions may lead to impairment of property, plants and
equipment and intangible assets of the Block.
The company is in the process of negotiating selling prices with
GAIL and expects that revised selling price will not be less than
the existing selling price.
Deferred tax assets
The assessment of the probability of future taxable income in
which deferred tax assets can be utilized is based on the
management's assessment, which is adjusted for specific limits to
the use of any unused tax loss or credit. The tax rules in the
jurisdictions in which the Group operates are also carefully taken
into consideration. If a positive forecast of taxable income
indicates the probable use of a deferred tax asset, especially when
it can be utilized without a time limit, then deferred tax asset is
usually recognized in full.
27. BASIS OF GOING CONCERN ASSUMPTION
The Group has current liabilities amounting to US$ 57,393,947
the majority of which is towards current portion of borrowings from
banks and related parties, primarily to Focus. As at 31 March 2017,
the amounts due for repayment (including interest payable) within
the next 12 months for long term borrowings are US$ 46,614,354
which the Group expects to meet from its internal generation of
cash from operations.
Further, the Group is contemplating to raise funds which will be
used for planned capital expenditures (including the exploration,
appraisal and development of assets).
28. CAPITAL MANAGEMENT POLICIES
The Group's objectives when managing capital are to safeguard
the Group's ability to continue as a going concern in order to
provide returns for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to reduce
the cost of capital.
The Group manages the capital structure and makes adjustments to
it in the light of changes in economic conditions and the risk
characteristics of the underlying assets. The Group monitors
capital on the basis of the gearing ratio. This ratio is calculated
as net debt divided by total capital. Debt is calculated as total
liabilities (including 'current and non-current liabilities' as
shown in the consolidated Statement of Financial Position). Total
equity is calculated as 'equity' as shown in the consolidated
statement of financial position plus total debt.
31 March
2017 31 March 2016
------------------------ ------------ --------------
Total debt (A) 531,846,443 529,013,474
Total equity (B) 129,249,252 103,865,944
Total capital employed
(A+B) 661,095,695 632,879,418
Gearing ratio 80.45 per 83.59 per
cent cent
------------------------ ------------ --------------
The gearing ratio has marginally decreased since in the current
year due to proportionately greater increase in equity as compared
to increase in the draw-down of loans from banks and related party
to fund additional exploration, evaluation and development
activities for the Group.
The Group is not subject to any externally imposed capital
requirements. There were no changes in the Group's approach to
capital management during the year.
29. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
A summary of the Group's financial assets and liabilities by
category are mentioned in the table below:
The carrying amounts of the Group's financial assets and
liabilities recognised at the end of the reporting period are as
follows:
31 March 31 March
2017 2016
--------------------------------- ------------ ------------
Non-current assets
Loans and receivables
- Security deposits 885 885
Current assets
Loans and receivables
- Trade receivables 2,045,252 3,266,738
- Cash and cash equivalents 11,401,788 61,081,916
Total financial assets under
loans and receivables 13,447,925 64,349,539
--------------------------------- ------------ ------------
Non-current liabilities
Financial liabilities measured
at amortised cost:
- Long term debt 239,647,360 283,779,293
- Payable to related parties 149,071,994 128,107,609
Current liabilities
Financial liabilities measured
at amortised cost:
- Current portion of long term
debt 46,614,354 37,556,739
- Current portion of payable
to related parties 5,570,622 7,175,123
- Accrued expenses and other
liabilities 131,885 175,372
--------------------------------- ------------ ------------
Total financial liabilities
measured at amortised cost 441,036,215 456,794,136
--------------------------------- ------------ ------------
The fair value of the financial assets and liabilities described
above closely approximates their carrying value on the statement of
financial position date.
Risk management objectives and policies
The Group finances its operations through a mixture of loans
from banks and related parties and equity. Finance requirements
such as equity, debt and project finance are reviewed by the Board
when funds are required for acquisition, exploration and
development of projects.
The Group treasury functions are responsible for managing
funding requirements and investments which includes banking and
cash flow management. Interest and foreign exchange exposure are
key functions of treasury management to ensure adequate liquidity
at all times to meet cash requirements.
The Group's principal financial instruments are cash held with
banks and financial liabilities to banks and related parties and
these instruments are for the purpose of meeting its requirements
for operations. The Group's main risks arising from financial
instruments are foreign currency risk, liquidity risk, commodity
price risk and credit risks. Set out below are policies that are
used to manage such risks:
Foreign currency risk
The functional currency of each entity within the Group is US$
and the majority of its business is conducted in US$. All revenues
from gas sales are received in US$ and substantial costs are
incurred in US$. No forward exchange contracts were entered into
during the year.
Entities within the Group conduct the majority of their
transactions in their functional currency other than finance lease
obligation balances which are maintained in Indian Rupees and
amounts of cash held in GBP. All other monetary assets and
liabilities are denominated in functional currencies of the
respective entities. The currency exposure on account of assets and
liabilities which are denominated in a currency other than the
functional currency of the entities of the Group as at 31 March
2017 and 31 March 2016 is as follows:
Particulars Functional Foreign 31 March 31 March
currency currency 2017 2016
---------------- ------------ -----------
(Amount in (Amount in
US$) US$)
---------------- ------------ ----------- ----------- ------------
Short term
exposure- Great
Cash and cash Britain
equivalents US$ Pound 20,594 149,937
Short term
exposure-
Cash and cash Singapore
equivalents US$ Dollar 143,583 44,881,697
Long term
exposure-
Long term Singapore
debt US$ Dollar 73,938,921 75,948,857
Total exposure 74,103,098 120,980,491
------------------------------------------- ----------- ------------
As at March 31, 2017, every 1% (increase)/decrease of the
respective foreign currencies compared to the functional currency
of the Group entities would impact profit before tax by
approximately USD (665,166) and USD 665,166 respectively.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with
the Board of Directors, which has established an appropriate
liquidity risk management framework for the management of the
Group's short, medium and long-term funding and liquidity
management requirements. The Group manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve
borrowing facilities, by continuously monitoring forecast and
actual cash flows, and by matching the maturity profiles of
financial assets and liabilities.
The table below summaries the maturity profile of the Group's
financial liabilities based on contractual undiscounted payments
for the liquidity analysis
3 months
to 1
On demand 0-3 months year 1-5 years 5+ years Total
--------- ---------- ---------- ----------- ----------- -----------
31 March 2017
Non-interest
bearing 5,250,197 131,885 - - - 5,382,082
Variable interest
rate liabilities - 13,338,846 39,458,607 139,919,422 53,892,270 246,609,146
Fixed interest
rate liabilities - - - 80,608,933 149,071,994 223,010,915
5,250,197 13,397,222 39,458,607 240,036,831 176,785,778 475,001,144
--------- ---------- ---------- ----------- ----------- -----------
3 months
to 1
On demand 0-3 months year 1-5 years 5+ years Total
--------- ---------- ---------- ----------- ----------- -----------
31 March
2016
6,916,510 175,373 - - - 7,091,883
Non-interest
bearing
Variable
interest
rate liabilities - 8,013,352 29,802,000 158,944,00 122,397,19 319,156,542
Fixed interest
rate liabilities - - - 73,498,806 128,107,608 201,606,414
6,916,510 8,188,725 29,802,000 232,442,806 250,504,798 527,854,839
--------- ---------- ---------- ----------- ----------- -----------
Interest rate risk
The Group's policy is to minimize interest rate risk exposures
on the borrowing from the banks and the sum payable to Focus Energy
Limited. Borrowing from the Gynia Holdings Ltd. is at fixed
interest rate and therefore, does not expose the Group to risk from
changes in interest rate. The interest rate on bond issued during
the year is fixed at 8% per annum. The Group is exposed to changes
in market interest rates through bank borrowings at variable
interest rates. Interest rate on US$ 110 million bank borrowing is
5 percent plus LIBOR; on US$ 40 million bank borrowing is 4 percent
plus LIBOR and on US$ 180 million bank borrowing is 4.1 percent
plus LIBOR (detailed in note 14).
The Group's interest rate exposures are concentrated in US$.
The analysis below illustrates the sensitivity of profit and
equity to a reasonably possible change in interest rates. Based on
volatility in interest rates in the previous 12 months, the
management estimates a range of 50 basis points to be approximate
basis for the reasonably possible change in interest rates. All
other variables are held constant.
Interest rate
---------------- ------------------------
+ 0.50 per - 0.50 per
cent cent
31 March 2017 1,073,074 (1,073,074)
31 March 2016 1,226,936 (1,226,936)
----------------- ---------- ------------
Since the loans are taken specifically for the purpose of
exploration and evaluation, development and production activities
and according to the Group's policy the borrowing costs are
capitalized to the cost of the asset and hence changes in the
interest rates do not have any immediate adverse impact on the
profit or loss.
Commodity price risks
The Group's share of production of gas from the Block is sold to
GAIL. The prices has been agreed for a period of three years which
expired in September 2016. As per the terms of contract, after
expiry of three years period, the price will be reviewed
periodically and reassessed mutually between the parties. The
Company is presently in negotiations with GAIL for increase in gas
price. No commodity price hedging contracts have been entered
into.
Credit risk
The Group has made short-term deposits of surplus funds
available with banks and financial institutions of good credit
repute and therefore, doesn't consider credit risk to be
significant. Other receivables such as security deposits and
advances with related parties, do not comprise of a significant
cumulative balance and thus do not expose the Group to a
significant credit risk. The Group has concentration of credit risk
as all the Group's trade receivables are held with GAIL, its only
customer. However, GAIL has a reputable credit standing and hence
the Group does not consider credit risk in respect of these to be
significant. None of the financial assets held by the Group are
past due.
Post reporting date event
No adjusting or significant non adjusting event have occurred
between 31 March 2017 and the date of authorization.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LPMBTMBTTTTR
(END) Dow Jones Newswires
September 29, 2017 02:02 ET (06:02 GMT)
Indus Gas (LSE:INDI)
Historical Stock Chart
From Apr 2024 to May 2024
Indus Gas (LSE:INDI)
Historical Stock Chart
From May 2023 to May 2024