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INDY India Star

0.325
0.00 (0.00%)
10 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
India Star LSE:INDY London Ordinary Share GB00B06L4049 ORD 0.2P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.325 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Interim Results

31/03/2008 8:01am

UK Regulatory


RNS Number:0743R
India Star Energy plc
31 March 2008





India Star Energy Plc ("India Star" or the "Company")

Interim results for the six month period ended 31 December 2007

31 March 2008


Chairman's Statement

I am pleased to report India Star's interim results for the six month period
ended 31 December 2007. During this period the Company has continued to work and
identify opportunities for investment that have the potential for significant
growth. We would expect that in the second half we will be in a position to make
further investments and add to our existing portfolio.

These interim statements for the six months ended 31 December 2007 are the first
that the Company has prepared under International Financial Reporting Standards
("IFRS") and include reconciliations to the previously reported numbers prepared
under United Kingdom Generally Accepted Accounting Principles ("UK GAAP"). The
Company has reduced its losses before tax to £34,290 from £45,419 in the
previous corresponding period. As at 31 December, the net assets of the Company
stood at £1,058,534 of which £491,907 was held in cash.

The Company has two principal investments. The progress in these companies is
summarised below.


East West Resource Corporation ("EastWest")

EastWest was formed in 1979 and is a Canadian focussed exploration company based
in Ontario and quoted on the Toronto Ventures Exchange. India Star holds 2.5
million shares in the company (representing 1.93 per cent of its current issued
share capital). EastWest explores for copper, zinc, nickel and other precious
metals and its operations are situated on Thunder Bay, a major mining hub with
good road and rail links and a port on the north side of Lake Superior.

East West (TSX Venture Exchange: EWR), announced in March 2008 that helicopter
borne VTEM electromagnetic and magnetic surveys have been completed and
preliminary data has been received covering a 30 kilometre strike length on its
claims subject to an Option and Joint Venture Agreement with Temex Resources
Corp.

The preliminary data reveals several discrete airborne EM conductors and Temex
and East West are currently reviewing this data in order to prioritize up to 10
potential drill targets. Ground geophysical surveys will be conducted where
warranted and diamond drilling is planned to test the new targets. The priority
airborne targets to be tested resemble targets similar to the Noront
nickel-copper-platinum group element discoveries (Eagle One and Eagle Two)
however a number of targets also resemble volcanogenic massive sulphide (VMS)
deposits similar to the discoveries near McFaulds Lake made since 2003.

The Company also announced that in addition to the 333 claim unit property
subject to the terms of an Option and Joint Venture Agreement with Temex
announced in February 2008, an additional 238 claim units were staked on a
syndicated 50:50 basis to extend coverage based on the results of the airborne
survey and to extend coverage on a number of other magnetic features. These
features are believed to represent geological environments favourable for the
formation of magmatic nickel-copper-platinum group element deposits.

Trillium North Minerals Ltd ("Trillium") (formerly known as Canadian Golden
Dragon)

India Star holds 7 million shares (representing 12.07 per cent. of its current
issued share capital) and a further 7 million warrants in Trillium.
Toronto-based Trillium is a gold-focused exploration company with properties
located in the pre-eminent gold camps in Northern Ontario. These include the
Dorothy- Dobie and Kasagiminnis properties in the Pickle Lake region of Ontario,
and the West Porcupine property in Timmins. The Company also holds interests in
other precious and base metal properties of note such as the Norton and Vanguard
properties in the Thunder Bay mining division.

Trillium's strategy is focused on leveraging the ability of its talented
exploration team to recognize geological opportunities that have been previously
overlooked. Its shareholder value maximization strategy includes complementing
the development of its 100%-owned properties with a diverse portfolio of joint
ventures that have exploration funding commitments from its partners. The Pickle
Lake properties are located in one of Ontario's historic gold camps, whose
geology rivals that of the famous Timmins Camp. Trillium's experienced team of
geologists guided by expert knowledge of ore deposit models, have astutely
deployed modern, cutting edge geophysical and geological techniques to identify
targets with high mineral potential. All of Trillium's properties and projects
are in Canada, which rates very low on the political risk spectrum and is
considered mining friendly


Outlook

India Star has the right strategy to deliver value to our shareholders and we
look forward to the future with confidence.



Haresh Kanabar
Chairman



31 March 2008



India Star Energy Plc
Consolidated Income Statement
for the six months ended 31 December 2007

                                                 Note                    Unaudited     Unaudited    Unaudited
                                                                          6 months      6 months         Year
                                                                             ended         ended        ended
                                                                       31 December   31 December      30 June
                                                                              2007          2006         2007
                                                                                 £             £            £

(Loss)/gain from derivatives trading              4                              -      (13,705)       25,340
Commissions payable                                                              -       (3,912)      (8,610)

Net (loss)/income from trading activities                                        -      (17,617)       16,730

Administrative expenses                                                   (55,763)      (45,297)     (96,177)

Loss from operations                                                      (55,763)      (62,914)     (79,447)

Investment revenues                               5                         12,893        11,945       24,163
Finance costs                                                                    -       (6,301)     (15,300)

Loss before taxation                                                      (42,870)      (57,270)     (70,584)


Loss for the period                                                       (42,870)      (57,270)     (70,584)


Loss per ordinary share

Basic and diluted loss per share                  7                        (0.02p)       (0.03p)      (0.04p)




All losses for the period are attributable to equity shareholders of the parent.


India Star Energy Plc
Consolidated Statement of Recognised Income and Expense
for the six months ended 31 December 2007
                                                                   Unaudited        Unaudited        Unaudited
                                                              6 months ended   6 months ended       Year ended
                                                                 31 December      31 December          30 June          
                                                                        2007             2006             2007
                                                                           £                £                £
                                                                                           
Loss for the period                                                 (42,870)         (57,270)         (70,584)
Fair value gains on available-for-sale securities                      8,580           11,751           45,939

Total recognised income and expense for the period                  (34,290)         (45,519)         (24,645)
attributable to equity shareholders


All losses for the period are attributable to equity shareholders of the parent.

Gains and losses arising from changes in fair value of available-for-sale
securities are recognised directly in equity, until the security is disposed of
or is determined to be impaired, at which time the cumulative gain or loss
previously recognised in equity is included in the profit or loss for the
period.



India Star Energy Plc

Consolidated Balance Sheet
at 31 December 2007

                                                       Note         Unaudited     Unaudited     Unaudited
                                                                  31 December   31 December       30 June
                                                                         2007          2006          2007
                                                                            £             £             £
Assets
Current assets
Cash and cash equivalents                              12(b)          491,907       413,267       487,201
Trade and other receivables                                             5,738        93,577         3,997
Available-for- sale securities                           8            633,551       590,783       624,971
Derivative assets                                        9                  -        20,392             -

Total current assets                                                1,131,196     1,118,019     1,116,169

Total assets                                                        1,131,196     1,118,019     1,116,169

Liabilities
Current liabilities
Trade and other payables                                             (72,662)      (46,069)      (23,345)

Total liabilities                                                    (72,662)      (46,069)      (23,345)

                                                                    1,058,534     1,071,950     1,092,824
Net assets

Equity
Share capital                                                         330,000       330,000       330,000
Share premium account                                                 854,350       854,350       854,350
Available-for-sale reserve                              13            185,066       142,298       176,486
Retained losses                                                     (310,882)     (254,698)     (268,012)

Equity attributable to equity holders of the parent     11          1,058,534     1,071,950     1,092,824



The financial statements were approved by the board of directors and authorised
for issue on 28 March 2008. They were signed on its behalf by:


H Kanabar
Director



India Star Energy Plc

Consolidated Cash Flow Statement
for the six months ended 31 December 2007

                                                      Note             Unaudited     Unaudited   Unaudited
                                                                        6 months      6 months        Year
                                                                           ended         ended       Ended
                                                                     31 December   31 December     30 June
                                                                            2007          2006        2007
                                                                               £             £           £
Net cash absorbed by operating activities           12(a)                (8,187)     (105,045)    (34,330)

Investing activities

Interest received                                                         12,893        11,945      24,163

Net cash used in investing activities                                     12,893        11,945      24,163

Financing activities

Interest paid on bank overdraft                                                -       (6,301)    (15,300)

Net cash (used in)/from financing activities                                   -       (6,301)    (15,300)

Net (decrease)/increase in cash and cash                                   4,706      (99,401)    (25,467)
equivalents

Cash and cash equivalents at beginning of period 12(b)                   487,201       512,668     512,668


Cash and cash equivalents at end of period       12(b)                   491,907       413,267     487,201





India Star Energy Plc

Notes to the consolidated interim statement
for the six months ended 31 December 2007


1.    Basis of preparation

The AIM Rules for Companies require that the annual consolidated financial
statements of the company for the year ending 30 June 2008 be prepared in
accordance with International Financial Reporting Standards adopted for use in
the European Union ("EU") ("IFRS").

Consequently these interim financial statements has been prepared on the basis
of the recognition and measurement requirements of IFRS in issue that are either
endorsed by the EU and effective (or available for early adoption) at 30 June
2008, the group's first annual reporting date at which it is required to use
IFRS. Based on these IFRS, the directors have made assumptions about the
accounting policies expected to be applied when the first annual IFRS financial
statements are prepared for the year ending 30 June 2008.

IAS 34 "Interim financial reporting" has not been early adopted.

An explanation of how the transition to IFRS has affected the reported financial
position and financial performance of the group is included within note 15. This
includes reconciliations of equity and profit or loss for the comparative
periods under UK Generally Accepted Accounting Practice ("UK GAAP") to those
reported for the periods under IFRS.

The preparation of the interim statement requires management to make judgements,
estimates and assumptions that affect the application of policies and reported
amounts of assets and liabilities, income and expenses. Actual results may
differ from these estimates.

This interim statement has been prepared under the historical cost convention.

This interim statement is unaudited. The comparatives for the full year ended 30
June 2007 are not the group's statutory accounts for that year as they are
restated under IFRS. A copy of the statutory accounts for that year, which were
prepared under UK GAAP, have been delivered to the Registrar of Companies. The
auditor's report on those accounts was unqualified, did not include references
to any matters to which the auditors drew attention by way of emphasis without
qualifying their report and did not contain a statement under Section 237(2)-(3)
of the Companies Act 1985.


2.    Significant accounting policies


Basis of accounting

The significant accounting policies that the group has applied to its financial
statements for the six months ended 31 December 2007 and which it expects to
apply in its full financial statements for the year ending 30 June 2008 are set
out below:


Basis of consolidation

The consolidated financial statements incorporate the financial statements of
the company and entities controlled directly or indirectly by the company (its
subsidiaries) made up to 30 June each year and interim financial statements made
up to 31 December. Control is achieved where the company has the power to govern
the financial and operating policies of an investee entity so as to obtain
benefits from its activities. In assessing control, potential voting rights that
presently are exercisable or convertible are taken into account. The financial
statements of subsidiaries are included from the date that control commences
until the date that control ceases.


Foreign currencies

Exchange differences arising on the settlement of monetary items, and on the
retranslation of monetary items, are included in profit or loss for the period.
Exchange differences arising on the retranslation of non-monetary items carried
at fair value are included in profit or loss for the period except for
differences arising on the retranslation of non-monetary items in respect of
which gains and losses are recognised directly in equity. For such non-monetary
items, any exchange component of that gain or loss is also recognised directly
in equity.


Financial instruments

Financial assets and financial liabilities are recognised in the group's balance
sheet when the group becomes a party to the contractual provisions of the
instrument.


Investments

Investments are recognised and derecognised on a trade date where a purchase or
sale of an investment is under a contract whose terms require delivery of the
investment within the timeframe established by the market concerned, and are
initially measured at cost, including transaction costs.

Investments are classified as either held-for-trading or available-for-sale, and
are measured at subsequent reporting dates at fair value. Where securities are
held for trading purposes, gains and losses arising from changes in fair value
are included in net profit or loss for the period. For available-for-sale
investments, gains and losses arising from changes in fair value are recognised
directly in equity, until the security is disposed of or is determined to be
impaired, at which time the cumulative gain or loss previously recognised in
equity is included in the profit or loss for the period. Impairment losses
recognised in profit or loss for equity investments classified as
available-for-sale are not subsequently reversed through profit or loss.


Derivatives

The group uses derivative financial instruments for speculative purposes and
measures derivative contracts at fair value. Changes in the fair value of
derivative financial instruments are recognised in the income statement as they
arise.

The use of financial derivatives is governed by the group's policies approved by
the board of directors, which provide written principles on the use of financial
derivatives.


Trade receivables

Trade receivables are measured at initial recognition at fair value, and are
subsequently measured at amortised cost using the effective interest rate
method. Appropriate allowances for estimated irrecoverable amounts are
recognised in profit or loss when there is objective evidence that the asset is
impaired. The allowance recognised is measured as the difference between the
asset's carrying amount and the present value of estimated future cash flows
discounted at the effective interest rate computed at initial recognition.


Financial liabilities and equity

Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument is
any contract that evidences a residual interest in the assets of the group after
deducting all of its liabilities.


Trade payables

Trade payables are initially measured at fair value, and are subsequently
measured at amortised cost, using the effective interest rate method.


Equity instruments

Equity instruments issued by the company are recorded at the proceeds received,
net of direct issue costs.


Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, and other
short-term highly liquid investments that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value. The
group considers all highly liquid investments with original maturity dates of
three months or less to be cash equivalents.


Provisions

Provisions are recognised when the group has a present obligation as a result of
a past event, and it is probable that the group will be required to settle that
obligation. Provisions are measured at the directors' best estimate of the
expenditure required to settle the obligation at the balance sheet date, and are
discounted to present value where the effect is material.


Investment income

Investment income relates to interest income, which is accrued on a time basis,
by reference to the principal outstanding and at the effective interest rate
applicable.


Commissions payable

Commissions are payable to brokers upon execution of trades in derivative
financial instruments. The commissions are incurred when a trade is contracted
and are recognised immediately in the income statement.


3.    Critical accounting judgements and key sources of estimation uncertainty

In the process of applying the group's accounting policies, which are described
in note 2, management has made the following judgements that have the most
significant effect on the amounts recognised in the financial statements (apart
from those involving estimations, which are dealt with below).


Revenue recognition

Revenue is measured at the fair value of the consideration received or
receivable and represents amounts  receivable for goods and services provided in
the normal course of business, net of discounts, VAT and other sales related
taxes.


Derivatives

Derivative financial instruments are valued at fair value and any resulting gain
or loss is recognised immediately in profit or loss.

Interest income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life
of the financial asset to that asset's net carrying amount.

Dividend income from investments is recognised when the shareholders' rights to
receive payment have been established.


Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation
uncertainty at the balance sheet date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the
next financial year, are discussed below.


Fair values of derivative assets and liabilities

All derivative assets and liabilities are valued based on available market
values.



4.    Gains and losses on derivatives trading

                                                                  Unaudited           Unaudited    Unaudited
                                                                   6 months            6 months         Year
                                                                      ended               ended        ended
                                                                31 December         31 December      30 June            
                                                                       2007                2006         2007
                                                                          £                   £            £
                                                                                           
(Decrease)/increase in the fair value of trading investments              -             (46,081)      25,340
disposed of
Increase in the fair value of trading investments held at year end        -               32,376           -

                                                                          -             (13,705)      25,340




5.    Investment revenues
                                                                       Unaudited       Unaudited     Unaudited
                                                                        6 months        6 months          Year
                                                                           ended           ended         ended
                                                                     31 December     31 December       30 June
                                                                            2007            2006          2007
                                                                               £               £             £ 

Interest on bank deposits                                                 12,893          11,440        21,878
Dividends from equity investments                                              -             505         2,285

                                                                          12,893          11,945        24,163



6.    Tax

The company and the group have incurred tax losses for the period and a
corporation tax charge is not anticipated. The amount of the unutilised tax
losses has not been recognised in the financial statements as the recovery of
this benefit is dependent on the future profitability of certain subsidiaries,
the timing of which cannot be reasonable foreseen.


7.    Loss per ordinary share

The calculation of a basic loss per share of 0.02 pence (31 December 2006: loss
of 0.03 pence (restated 30 June 2007: loss of 0.04 pence) is based on the loss
for the period attributable to equity holders of the India Star Energy plc of
£42,870 (31 December 2006: loss of £57,270; 30 June 2007: loss of £70,584) and
on the weighted average number of shares in issue during the period of
165,000,000 (31 December 2006: 165,000,000; 30 June 2007: 165,000,000).

Due to the loss incurred during the year, a diluted loss per share has not been
disclosed as this would serve to reduce the basic loss per share.


8.     Available for sale securities

The available-for-sale securities relate to two investments East West Resource
Corporation and Trillium North Minerals Ltd (formally Canadian Golden Dragon
Resources Ltd) listed on the (TSX-V Canadian exchange). The investments are
classified as current assets due to their relative liquidity and are measured at
their fair value at each reporting date. Changes in fair value are recorded in
equity until they are disposed off or impairment is recognised.


9.     Derivatives

The group trades in contracts for difference with a view to making profits
through favourable future market movements. Open positions are valued at fair
value by taking a readily available market price.

At 31 December 2007, the group had no open positions (31 December 06: £20,392
asset and 30 June 2007: £nil).


10.    Subsidiaries

Details of the company's subsidiaries at 31 December 2007 are as follows:

Name                                   Place of incorporation (or       Proportion of      Proportion of voting
                                      registration) and operation    ownership interest %      power held %
                                    
Rutland Star Ventures Ltd                       England                     100%                  100%


All investments are held directly.


11.    Consolidated movement in equity
                                                      Unaudited            Unaudited              Unaudited
                                               31 December 2007     31 December 2006           30 June 2007
                                                             £                     £                      £
Opening equity                                        1,092,824            1,117,469              1,117,469
Loss for the period                                    (42,870)             (57,270)               (70,584)
Increase in value of                                      8,580               11,751                 45,939
available-for-sale securities
Closing equity                                        1,058,534            1,071,950              1,092,824




12.    Notes to the cash flow statement

       (a)  Net cash                                   
            absorbed by operating               
            activities                                 Unaudited            Unaudited             Unaudited        
                                                31 December 2007     31 December 2006          30 June 2007
                                                               £                    £                     £

       Loss before taxation                             (55,763)             (62,914)              (79,447)

       Operating cash flows before                      (55,763)             (62,914)              (79,447)
       movements in working capital
       Increase/(decrease) in                            (1,741)             (67,194)                42,778
       receivables
       Increase/(decrease) in                             49,317               25,063                 2,339
       payables

       Net cash outflow from                             (8,187)            (105,045)              (34,330)
       operations



Cash and cash equivalents (which are presented as a single class of assets on
the face of the balance sheet) comprise cash at bank and other short-term highly
liquid investments with a maturity of three months or less.



(b)    Cash and cash equivalents                               
                                                                       Unaudited       Unaudited     Unaudited
                                                                     31 December     31 December       30 June 
                                                                            2007            2006          2007
                                                                               £               £             £
Cash at bank and in hand                                                 491,907         413,267       487,201
Bank overdraft                                                                 -               -             -

Net cash position                                                        491,907         413,267       487,201



13.    Available-for-sale reserve

The available-for-sale reserve arises upon revaluation of available-for-sale
securities at their fair value.


14.    Events after the balance sheet date

Management are not aware of any events occurring between the balance sheet date
of these interim financial statements and the date of their approval that would
materially impact the information contained within in these financial
statements.


15.    Explanation of transition to IFRS

This is the time that the group has presented its financial statements under
IFRS. The following disclosures are required in the year of transition. The last
audited financial statements under UK GAAP were for the year ended 30 June 2007
and the date of transition to IFRSs was therefore 1 July 2006.



(a)    Reconciliation of consolidated balance sheet at 1 July 2006 from UK GAAP to IFRS

                                                                    
                                                                                Unaudited        
                                                                                Effect of        
                                                                            transition to          Unaudited
                                                                  UK GAAP            IFRS               IFRS
                                                Notes                   £               £                  £
Assets
Non-current assets
Investments                                       (i)             448,485        (448,485)                 -

                                                                  448,485        (448,485)                 -

Current assets
Cash and cash equivalents                                         512,668                -           512,668
Trade and other receivables                                        46,775           11,982            58,757
Available for sale securities                     (i)                   -          579,032           579,032

Total current assets                                              559,443          591,014         1,150,457

Total assets                                                    1,007,928          142,529         1,150,457

Liabilities
Current liabilities
Trade and other payables                                           21,006                -            21,006
Derivative liabilities                            (ii)                  -           11,982            11,982

Total liabilities                                                  21,006           11,982            32,988

Net assets                                                        986,922          130,457         1,117,469

Equity
Share capital                                                     330,000                -           330,000

Share premium account                                             854,350                -           854,350
Available for sale reserve                        (i)                   -          130,547           130,547
Retained losses                                                 (197,428)                -         (197,428)

Total equity                                                      986,922          130,547         1,117,469





(b)    Reconciliation of consolidated balance sheet at 31 December 2006 from UK GAAP to IFRS


                                                                                Unaudited       
                                                                Restated        Effect of             
                                                               Unaudited    transition to         Unaudited
                                                                 UK GAAP             IFRS              IFRS   

                                                Notes                  £                £                 £
Non-current assets
Investments                                       (i)            448,485        (448,485)                 -

Total non-current assets                                         448,485        (448,485)                 -

Current assets
Cash and cash equivalents                                        413,267                -           413,267
Trade and other receivables                                       93,577                -            93,577
Available for sale securities                     (i)                  -          590,783           590,783
Derivative assets                                 (ii)                 -           20,392            20,392

Total current assets                                             506,844          611,175         1,118,019

Total assets                                                     955,329          162,690         1,118,019

Current liabilities
Trade and other payables                                          46,069                -            46,069

Total liabilities                                                 46,069                -            46,069

Net assets                                                       909,260          162,690         1,071,950


Equity
Share capital                                                    330,000                -           330,000
Share premium account                                            854,350                -           854,350
Available for sale reserve                        (i)                  -          142,298           142,298
Retained earnings                                              (275,090)           20,392         (254,698)

Equity attributable to equity holders of the                     909,260          162,690         1,071,950
parent





(c)    Reconciliation of consolidated balance sheet at 30 June 2007 from UK GAAP to IFRS

                                                                                Unaudited       
                                                                                Effect of       
                                                                  Audited   transition to       Unaudited
                                                                  UK GAAP            IFRS            IFRS
                                                Notes                   £                £              £
Assets
Non-current assets
Investments                                       (i)             448,485        (448,485)              -

Total non-current assets                                          448,485        (448,485)              -

Current assets
Cash and cash equivalents                                         487,201                -        487,201
Trade and other receivables                                         3,997                -          3,997
Available for sale securities                     (i)                   -          624,971        624,971

Total current assets                                              491,198          624,971      1,116,169

Total assets                                                      939,683          176,486      1,116,169

Current liabilities
Trade and other payables                                           23,345                -         23,345

Total liabilities                                                  23,345                -         23,345

Net assets                                                        916,338          176,486      1,092,824

Equity
Share capital                                                     330,000                -        330,000
Share premium account                                             854,350                -        854,350
Available for sale reserve                        (i)                   -          176,486        176,486
Retained losses                                                 (268,012)                -      (268,012)

Equity attributable to equity holders of the                      916,338          176,486      1,092,824
parent




(d)    Reconciliation of the UK GAAP consolidated statement of profit and loss to the IFRS
       consolidated income statement for the 6 months ended 31 December 2006

                                                                                    Unaudited        
                                                                    Restated        Effect of        
                                                                   Unaudited    transition to       Unaudited
                                                                     UK GAAP             IFRS            IFRS
                                                      Notes                £                £               £

(Loss)/gain from derivatives trading            (ii), (iii)         (46,081)           32,376        (13,705)
                                                      
Commissions payable                                   (iii)          (3,912)                          (3,912)

Net (loss)/income from trading activities                           (49,993)           32,376        (17,617)

Administrative expenses                                             (45,297)                -        (45,297)

Loss from operations                                                (95,290)           32,376        (62,914)

Investment revenues                                                   11,945                -          11,945
Finance costs                                                        (6,301)                -         (6,301)
Loss before tax                                                     (89,646)           32,376        (57,270)

Loss before tax                                                     (89,646)           32,376        (57,270)

Tax                                                                        -                -               -

Loss for the period                                                 (89,646)           32,376        (57,270)





(e)    Reconciliation of the UK GAAP consolidated statement of profit and loss to the IFRS
       consolidated income statement for the year ended 30 June 2007

                                                                                  Unaudited       
                                                                                  Effect of       
                                                                    Audited   transition to         Unaudited
                                                                    UK GAAP            IFRS              IFRS
                                                   Notes                  £               £                 £

Gains less losses from derivatives trading         (iii)             25,340                            25,340
Commissions payable                                (iii)            (8,610)                           (8,610)

Net (loss)/income from trading activities                            16,730               -            16,730
Administrative expenses                                            (96,177)               -          (96,177)

Loss from operations                                               (79,447)               -          (79,447)

Investment revenues                                                  24,163               -            24,163
Finance costs                                                      (15,300)               -          (15,300)

Loss before tax                                                    (70,584)               -          (70,584)

Tax                                                                       -               -                 -

Loss for the period                                                (70,584)               -          (70,584)



(f)    Notes to reconciliations explaining the transition to IFRS

       i.  Equity investments were previously recognised under UK GAAP at cost 
           on acquisition, less any provision for impairment. Under IFRS,
           these investments are classified as available-for-sale securities 
           and are recognised initially at cost and subsequently at fair value. 
           Any gains or losses arising due to movements in the fair values of 
           these investments are recorded directly in equity until the 
           investment is either disposed of or impaired. Upon disposal or 
           impairment, any accumulated gains/losses on available-for-sale
           securities are transferred to the income statement.

      ii.  Derivatives contracts are valued at their fair value and any gain 
           or loss taken immediately through profit and loss. Any open positions
           are recognised in the balance sheet at their fair value at the 
           balance sheet date.

     iii.  Under the previous reporting framework, India Star recognised the 
           gains or losses on trading of derivatives as turnover, with
           commissions being recognised as cost of sales. Under IFRS, these 
           have been reclassified to reflect the nature of the incomes and 
           expenses.



                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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