Half Yearly Report

 

TIDMINDY 
 
RNS Number : 5690P 
India Star Energy plc 
27 March 2009 
 
? 
India Star Energy Plc ("India Star" or the "Company") 
 
 
Interim Results 
 
 
27 March 2009 
 
 
Interim results for the six months ended 31 December 2008 
 
 
India Star Energy today announces its unaudited results for the six months ended 
31 December 2008. The Company continues to focus on its strategy of making 
investments in mining companies and alternative sources of fuel. The Company 
made a loss before tax of GBP34,255 in the six month period to 31 December 2008 
compared to a loss before tax of GBP42,870 in the corresponding six months in 
the previous year. The loss per share equated to 0.02p compared to 0.02p in the 
previous year. As at 31 December 2008 the company has net assets of GBP490,209. 
 
 
The Company has three principal investments, the progress of which is summarised 
below: 
 
 
New Fuels International Limited ('NFIL') 
 
 
NFIL is a Seychelles based, specialised development company involved in the 
creation of renewable bio-fuels and bio-energy projects. NFIL is establishing an 
international consortium of investors and technology partners to replicate the 
Brazilian bio-fuel model in carefully selected African countries. As an initial 
strategy, NFIL is seeking to develop captive raw material feedstock through 
sugar cane plantation development and small farmer development in markets that 
have a competitive advantage in sugar cane production. This will be matched with 
the establishment of Ethanol processing facilities based on sugar cane as a 
feedstock for domestic and export consumption. 
 
 
India Star has acquired an option to purchase 100 per cent, of the issued share 
capital of NFIL. Under the terms of the share option agreement dated 10 July 
2008, the NFIL Shareholders have agreed to grant to India Star an option to 
purchase all of the Option Shares (including any additional ordinary shares 
issued during the period of the option (the 'Option'). The Option to be 
exercised in whole and within 12 months of entering into the Agreement. The 
initial consideration paid for the Option was GBP250,000 cash upon exercise of 
the Option, India Star and the NFIL Shareholders will agree the purchase price 
for the Option Shares or, to the extent that no agreement is reached, the price 
will be determined by an independent investment bank. The Option Shares purchase 
price will be satisfied by the issue of ordinary shares of India Star Energy to 
the NFIL Shareholders. 
 
 
The Company is in close discussions with New Fuels International with a view to 
extending the term of the option. We have experienced delays in reviewing this 
opportunity due to the rapid drop in the price of oil as this has a direct 
impact on the economics of alternative sources of fuel. We are however confident 
that alternative fuel is the right space to be in and when market conditions 
improve we will seek to pursue our strategy. The Company will announce any 
amendments to this option to Shareholders, as and when appropriate. 
 
 
Trillium North Minerals Ltd ('Trillium') 
 
 
Trillium is quoted on the Toronto Ventures Exchange ('TVX') and is developing 
its mineral rights in Ontario, Canada. India Star holds 7 million shares 
(representing 11.49 per cent. of its current issued share capital). 
 
 
Trillium is engaged in the acquisition, exploration and if warranted, 
development of mining properties in Canada. It currently holds interests in 
resource properties primarily located in Ontario and intends to seek out and 
acquire additional properties, worthy of exploration and development, as its 
finances permit. The exploration and development of the properties is 
accomplished either through direct expenditure by the Company or joint venturing 
of the property to other companies. Trillium's strategy maximises opportunity by 
complementing the development of its 100% owned properties with a diverse 
portfolio of joint ventures with exploration funding commitments from partners. 
This strategy leverages the exploration teams' proven ability to recognise 
overlooked geological opportunities using advanced geological techniques. 
 
 
In December 2008, a drill program comprising four drill holes totaling 860.5 
metres were completed on Trillium North Minerals Ltd's West Porcupine gold 
property located 34 kilometres west of Timmins, Ontario. This property contains 
a drill hole made in 1994 by Hemlo Gold Mines Inc., which intersected 11.9m @ 
6.5g/t Au, including 1.5m @ 43.4g/t Au The assays were performed on 30-gram 
samples with fire assay method and atomic absorption finish. 
 
 
The drill hole intersected silicified basalts adjacent to the Destor Porcupine 
fault extension and a Quartz Eye Porphyry containing molybdenite. Quartz veins 
identified by Hemlo in step-out holes 150 metres below and 400 metres on strike 
produced assays of 2m @ 18.7g/t. 
 
 
The purpose of the present, limited program was to test a previously untested 
area on the north side of the original Quartz Eye Porphyry discovery 1,600m west 
of the 1994 gold zone. Quartz veins containing pyrite were intersected, and a 
number of ultramafic zones within the Destor Porcupine fault system were 
identified in this program. 
 
 
East West Resource Corporation ('EastWest') 
 
 
EastWest is a Canadian focused exploration company based in Thunder Bay, 
Ontario, formed in 1979 and is quoted on the TVX. India Star holds 2.5 million 
shares in the company (representing 1.92 percent of its current issued share 
capital). 
 
 
EastWest explores for copper, zinc, nickel and precious metals in northwestern 
Ontario. One particular focus is on the platinum group metals in association 
with copper and nickel. 
EastWest has three flagship assets plus an active portfolio of early stage 
projects. 
 
 
A detailed airborne EM and magnetic survey, and one drill hole were completed in 
December 2008 over the 210 claim unit Eva Kitto property which is under option 
to International Bethlehem Mining Corporation (TSX-V: IBC). 
 
 
  *  The survey outlined a number of conductor trends in the basement rocks that may 
  represent key sulphur sources for the generation of nickel-copper-PGE deposits 
  within Proterozoic ultramafic rocks that form the Eva Kitto cone-ring intrusion. 
  This intrusion is 10km in diameter and is similar in size and setting as the 
  Talnak intrusion in Siberia that hosts some of the world class copper-nickel-PGE 
  deposits. The mid continental rift system located in Lake Superior to the south 
  of the property has a number of branch faults that are "failed arms" of the main 
  Rift Fault and several intrusions in the Lake Nipigon region are related to such 
  structures including the Seagull PGE bearing intrusion and new PGE discoveries 
  by Magma Metals in that area. 
 
 
 
  *  The 245.36 metre hole intersected 173 metres of ultramafic rock before entering 
  30m into sulphide rich volcanic basement rock, before entering more ultramafic 
  rock where the hole stopped. This second ultramafic intercept may be a dike. 
  This might be an important feature for locating sulphide bodies containing 
  copper-nickel-PGE. Further drilling on this hole is planned for February as well 
  as step-out holes in this area and other new targets. International Bethlehem 
  Mining Corporation (TSX-V: IBC) have an option to earn a 30% interest in the 
  property by spending $500,000 of which $150,000 has been spent so far and the 
  right to earn up to 60% by spending an additional $1,000,00 within 3 years. The 
  Eva Kitto property is located near the town of Beardmore, Ontario next to Hwy 
  11, the Trans Canada gas pipeline and a rail line, approximately 180km 
  north-northeast of Thunder Bay, Ontario. 
 
 
 
Outlook 
 
 
Whilst commodity and alternative fuel prices are somewhat depressed we do 
believe that they will recover at, which point the Board would look to build on 
our existing investments. 
 
 
Haresh Kanabar 
Chairman 
27 March 2009 
 
 
 
 
 
 
Enquiries: 
 
 
India Star Energy Plc 
0207 297 0010 
Haresh Kanabar 
Chairman 
 
 
W.H. Ireland Limited 
0121 265 6330 
Tim Cofman/Katy Birkin 
 
 
 
 
 
 
 
 
India Star Energy Plc 
Consolidated Income Statement 
for the six months ended 31 December 2008 
 
 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|                                |  Note    |       | Unaudited | Unaudited |  Audited | 
|                                |          |       |  6 months |  6 months |     Year | 
|                                |          |       |     ended |     ended |    ended | 
|                                |          |       |        31 |        31 |  30 June | 
|                                |          |       |  December |  December |     2008 | 
|                                |          |       |      2008 |      2007 |      GBP | 
|                                |          |       |       GBP |       GBP |          | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|                                |          |       |           |           |          | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|                                |          |       |           |           |          | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|        Administrative expenses |          |       |  (37,370) |  (55,763) | (85,018) | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|                                |          |       |           |           |          | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|        Loss from operations    |          |       |  (37,370) |  (55,763) | (85,018) | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|                                |          |       |           |           |          | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|        Investment revenues     |    5     |       |     3,115 |    12,893 |   21,600 | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|                                |          |       |           |           |          | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|        Loss before taxation    |          |       |  (34,255) |  (42,870) | (63,418) | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|                                |          |       |           |           |          | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|                                |          |       |           |           |          | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|        Loss for the period     |          |       |  (34,255) |  (42,870) | (63,418) | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
|                                |          |       |           |           |          | 
+--------------------------------+----------+-------+-----------+-----------+----------+ 
 
 
+--------------------------------+----------+--------+----------+-----------+----------+ 
|        Loss per ordinary share |          |        |          |           |          | 
+--------------------------------+----------+--------+----------+-----------+----------+ 
|                                |          |        |          |           |          | 
+--------------------------------+----------+--------+----------+-----------+----------+ 
|        Basic and diluted loss  |    7     |        |  (0.02p) |   (0.02p) |  (0.04p) | 
|        per share               |          |        |          |           |          | 
+--------------------------------+----------+--------+----------+-----------+----------+ 
|                                |          |        |          |           |          | 
+--------------------------------+----------+--------+----------+-----------+----------+ 
 
 
All losses for the period are attributable to equity shareholders of the parent. 
 
 
India Star Energy Plc 
Consolidated Balance Sheet 
at 31 December 2008 
 
 
+-------------------------------------+--------+-----------+-----------+-----------+ 
|                                     |  Note  | Unaudited | Unaudited |   Audited | 
|                                     |        |        31 |        31 |   30 June | 
|                                     |        |  December |  December |      2008 | 
|                                     |        |      2008 |      2007 |       GBP | 
|                                     |        |       GBP |       GBP |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Assets                              |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Non-current assets                  |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Investments                         |   5    |   250,000 |         - |         - | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Available-for-sale securities       |        |   120,029 |   633,551 |   413,857 | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
|                                     |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Current assets                      |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Cash and cash equivalents           |  10    |   152,991 |   491,907 |   438,340 | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Trade and other receivables         |        |     1,395 |     5,738 |     9,088 | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
|                                     |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Total current assets                |        |   154,386 | 1,131,196 |   447,428 | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
|                                     |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Total assets                        |        |   524,415 | 1,131,196 |   861,285 | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
|                                     |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Liabilities                         |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Current liabilities                 |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Trade and other payables            |        |  (34,207) |  (72,662) |  (42,993) | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
|                                     |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Total liabilities                   |        |  (34,207) |  (72,662) |  (42,993) | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
|                                     |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
|                                     |        |   490,209 | 1,058,534 |   818,292 | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Net assets                          |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
|                                     |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Equity                              |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Share capital                       |        |   330,000 |   330,000 |   330,000 | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Share premium account               |        |   854,350 |   854,350 |  854,350  | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Available-for-sale reserve          |        | (328,456) |   185,066 |  (34,628) | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Retained losses                     |        | (365,685) | (310,882) | (331,430) | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
|                                     |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
| Equity attributable to equity       |        |   490,209 | 1,058,534 |   818,292 | 
| holders of the parent               |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
|                                     |        |           |           |           | 
+-------------------------------------+--------+-----------+-----------+-----------+ 
 
 
The financial statements were approved by the board of directors and authorised 
for issue on 27 March 2009. They were signed on its behalf by: 
 
 
H Kanabar                                             Director 
 
 
 
 
India Star Energy Plc 
Consolidated Statement of Changes in Equity 
for the six months ended 31 December 2008 
 
 
 
 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|                                |          Share |          Share |        Available- |         Retained |            Total | 
|                                |        capital |        premium |        for - sale |         earnings |                  | 
|                                |              - |                |           reserve |                  |                  | 
|                                |         equity |                |                   |                  |                  | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|                                |            GBP |            GBP |               GBP |              GBP |              GBP | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        Year ended 30 June 2007 |                |                |                   |                  |                  | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        At 1 July 2007          |        330,000 |        854,350 |                 - |        (197,428) |          986,922 | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        Available-for-sale      |              - |              - |           112,095 |                - |          112,095 | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        Loss for the period     |              - |              - |                 - |         (70,584) |         (70,584) | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|                                |                |                |                   |                  |                  | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        At 30 June 2007         |        330,000 |        854,350 |           112,095 |        (268,012) |        1,028,433 | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|                                |                |                |                   |                  |                  | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        Year ended 30 June 2008 |                |                |                   |                  |                  | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        At 1 July 2007          |        330,000 |        854,350 |           112,095 |        (268,012) |        1,028,433 | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        Available-for-sale      |              - |              - |         (146,723) |                - |        (146,723) | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        Loss for the year       |              - |              - |                 - |         (63,418) |         (63,418) | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|                                |                |                |                   |                  |                  | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        At 30 June 2008         |        330,000 |        854,350 |          (34,628) |        (331,430) |          818,292 | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|                                |                |                |                   |                  |                  | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|                                |                |                |                   |                  |                  | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        Six months ended 31     |                |                |                   |                  |                  | 
|        December 2008           |                |                |                   |                  |                  | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        At 30 June 2008         |        330,000 |        854,350 |          (34,628) |        (331,430) |          818,292 | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        Available-for-sale      |              - |              - |         (293,828) |                - |        (293,828) | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        Loss for the period     |              - |              - |                 - |         (34,255) |         (34,255) | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|                                |                |                |                   |                  |                  | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|        At 31 December 2008     |        330,000 |        854,350 |         (328,456) |        (365,685) |          490,209 | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|                                |                |                |                   |                  |                  | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
|                                |                |                |                   |                  |                  | 
+--------------------------------+----------------+----------------+-------------------+------------------+------------------+ 
 
 
India Star Energy Plc 
Consolidated Cashflow Statement 
for the six months ended 31 December 2008 
 
 
+----------------------------------------------------+--------+-----------------+--------------+---------------+ 
|                                                    | Note   |       Unaudited |              |       Audited | 
|                                                    |        |        6 months |    Unaudited |          Year | 
|                                                    |        |           ended |     6 months |         ended | 
|                                                    |        |     31 December |        ended |       30 June | 
|                                                    |        |            2008 |  31 December |          2008 | 
|                                                    |        |             GBP |         2007 |           GBP | 
|                                                    |        |                 |          GBP |               | 
+----------------------------------------------------+--------+-----------------+--------------+---------------+ 
 
 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
| Net cash flow from operating activities            | 10(a)  |        (38,464) |       (8,187) |      (70,461) | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
| Return on investments and services of finance      |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
| Interest received                                  |        |           3,115 |        12,893 |        21,600 | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
| Net cash inflow from returns on investments and    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |           3,115 |        12,893 |        21,600 | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
| Financing activities                               |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
| Investments                                        |        |       (250,000) |             - |             - | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
| Net cash (used in)/from financing activities       |        |       (246,885) |        12,893 |        21,600 | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|  (decrease) in net cash                            |        |       (285,349) |         4,706 |      (48,861) | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
| Cash and cash equivalents at beginning of period   | 10(b)  |         438,340 |       487,201 |       487,201 | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
| Cash and cash equivalents at end of period         | 10(b)  |         152,991 |       491,907 |       438,340 | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
|                                                    |        |                 |               |               | 
+----------------------------------------------------+--------+-----------------+---------------+---------------+ 
 
 
 
 
India Star Energy Plc 
Notes to the consolidated interim statement 
for the six months ended 31 December 2008 
 
 
1.      Basis of preparation 
 
 
India Star Energy Plc is a public company domiciled in England and Wales and 
incorporated in the United Kingdom under the Companies Act 1985. Its registered 
office is Leicester Business Centre, 111 Ross Walk, Leicester, LE4 5HH. 
 
 
These interim financial statements for the period ended 31 December 2008, have 
been prepared on the basis of the recognition and measurement requirements of 
IFRS in issue that are either endorsed by the EU and effective at 30 June 2007. 
 
 
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 2008 are the group's statutory accounts for that year and reported under 
IFRS. 
 
 
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 2008 and which it expects to 
apply in its full financial statements for the year ending 30 June 2009 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 
 
 
The company classifies financial instruments, or their components parts, on 
initial recognition as a financial asset, a financial liability or an equity 
instrument in accordance with the substance of the contractual arrangement. 
 
 
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 contract at fair value. Changes in the fair value of 
derivative financial instruments are recognised in the income statement as they 
arise. 
 
 
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 in 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). 
 
 
Derivatives 
 
 
Derivative financial instruments are valued at fair value and any resulting gain 
or loss is recognised immediately in profit or loss. 
 
 
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. 
 
 
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.Segment information 
 
 
    (a)Primarily business segment - The group has only one business segment, 
that of investing in the 
 

            energy sector. 
 
 
    (b)Secondary geographical segment - The directors do not believe there is 
more than one 
 

           geographical segment. 
 
 
5.    Investment revenues 
 
 
+----------------------------------------+--+------------+--+------------+-----------+--+ 
|                                        |  |     Unaudited |  Unaudited |   Audited | 
|                                        |  |      6 months |   6 months |     Year  | 
|                                        |  |         ended |      ended |     ended | 
|                                        |  |   31 December |         31 |   30 June | 
|                                        |  |          2008 |   December |      2008 | 
|                                        |  |           GBP |       2007 |       GBP | 
|                                        |  |               |        GBP |           | 
+----------------------------------------+--+---------------+------------+-----------+ 
|                                        |  |               |            |           | 
+----------------------------------------+--+---------------+------------+-----------+ 
|           Interest on bank deposits    |  |         3,115 |     12,893 |    21,600 | 
+----------------------------------------+--+---------------+------------+-----------+ 
|                                        |  |               |            |           | 
+----------------------------------------+--+---------------+------------+-----------+ 
|                                        |  |            |               |              | 
+----------------------------------------+--+------------+---------------+--------------+ 
|                                        |  |      3,115 |        12,893 |       21,600 | 
+----------------------------------------+--+------------+---------------+--------------+ 
|                                        |  |            |               |              | 
+----------------------------------------+--+------------+--+------------+-----------+--+ 
 
 
Investments 
 
 
+----------------------------------------+--+------------+--+------------+-----------+--+ 
|                                        |  |     Unaudited |  Unaudited |   Audited | 
|                                        |  |      6 months |   6 months |     Year  | 
|                                        |  |         ended |      ended |     ended | 
|                                        |  |   31 December |         31 |   30 June | 
|                                        |  |          2008 |   December |      2008 | 
|                                        |  |           GBP |       2007 |       GBP | 
|                                        |  |               |        GBP |           | 
+----------------------------------------+--+---------------+------------+-----------+ 
|                                        |  |               |            |           | 
+----------------------------------------+--+---------------+------------+-----------+ 
|           New Fuels International      |  |       250,000 |          - |         - | 
|           Limited ('NFIL')             |  |               |            |           | 
+----------------------------------------+--+---------------+------------+-----------+ 
|                                        |  |               |            |           | 
+----------------------------------------+--+---------------+------------+-----------+ 
|                                        |  |            |               |              | 
+----------------------------------------+--+------------+---------------+--------------+ 
|                                        |  |    250,000 |             - |            - | 
+----------------------------------------+--+------------+---------------+--------------+ 
|                                        |  |            |               |              | 
+----------------------------------------+--+------------+--+------------+-----------+--+ 
 
 
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 2007: loss 
of 0.02 pence, June 2008: loss of 0.04 pence) is based on the loss for the 
period attributable to equity holders of the India Star Energy plc of GBP34,255 
(31 December 2007: loss of GBP42,870; 30 June 2008: loss of GBP63,418) and on 
the weighted average number of shares in issue during the period of 165,000,000 
(31 December 2007: 165,000,000; 30 June 2008: 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 of or impairment is recognised. 
 
 
9.    Subsidiaries 
 
 
Details of the company's subsidiaries at 31 December 2008 are as follows: 
 
 
+---------------------------------------------+---------------------+--------------+------------+ 
| Name                                        |      Place of       |  Proportion  |Proportion  | 
|                                             |    incorporation    |      of      | of voting  | 
|                                             |  (or registration)  |  ownership   |power held  | 
|                                             |    and operation    |  interest    |     %      | 
|                                             |                     |      %       |            | 
+---------------------------------------------+---------------------+--------------+------------+ 
|                                             |                     |              |            | 
+---------------------------------------------+---------------------+--------------+------------+ 
|                                    Rutland  |            England  |    100%      |    100%    | 
|                                    Star     |                     |              |            | 
|                                    Ventures |                     |              |            | 
|                                    Ltd      |                     |              |            | 
+---------------------------------------------+---------------------+--------------+------------+ 
 
 
All investments are held directly. 
 
 
10(a)    Notes to the cash flow statement 
 
 
+-----------------------------------------------------------------------+---+-----------+-----------+----------+ 
|                             Net cash                                  |   | Unaudited | Unaudited |  Audited | 
|                             absorbed                                  |   |        31 |        31 |  30 June | 
|                             by                                        |   |  December |  December |     2008 | 
|                             operating                                 |   |      2008 |      2007 |      GBP | 
|                             activities                                |   |       GBP |       GBP |          | 
|                                                                       |   |           |           |          | 
+-----------------------------------------------------------------------+---+-----------+-----------+----------+ 
|                                    Loss                               |   |  (37,370) |  (55,763) | (85,018) | 
|                                    before                             |   |           |           |          | 
|                                    taxation                           |   |           |           |          | 
+-----------------------------------------------------------------------+---+-----------+-----------+----------+ 
|                                                                       |   |           |           |          | 
+-----------------------------------------------------------------------+---+-----------+-----------+----------+ 
|                                                                       |   |           |           |          | 
+-----------------------------------------------------------------------+---+-----------+-----------+----------+ 
|                                    Operating                          |   |  (37,370) |  (55,763) | (85,018) | 
|                                    cash                               |   |           |           |          | 
|                                    flows                              |   |           |           |          | 
|                                    before                             |   |           |           |          | 
|                                    movements                          |   |           |           |          | 
|                                    in                                 |   |           |           |          | 
|                                    working                            |   |           |           |          | 
|                                    capital                            |   |           |           |          | 
+-----------------------------------------------------------------------+---+-----------+-----------+----------+ 
|                                                   (Decrease)/increase |   |     7,692 |   (1,741) |  (5,090) | 
|                                                   in receivables      |   |           |           |          | 
+-----------------------------------------------------------------------+---+-----------+-----------+----------+ 
|                                                   Increase            |   |   (8,786) |    49,317 |   19,647 | 
|                                                   in                  |   |           |           |          | 
|                                                   payables            |   |           |           |          | 
+-----------------------------------------------------------------------+---+-----------+-----------+----------+ 
|                                                                       |   |           |           |          | 
+-----------------------------------------------------------------------+---+-----------+-----------+----------+ 
|                                    Net                                |   |  (38,464) |   (8,187) | (70,461) | 
|                                    cash                               |   |           |           |          | 
|                                    outflow                            |   |           |           |          | 
|                                    from                               |   |           |           |          | 
|                                    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             |   | Unaudited | Unaudited |  Audited | 
|               equivalents                   |   |        31 |        31 |  30 June | 
|                                             |   |  December |  December |     2008 | 
|                                             |   |      2008 |      2007 |      GBP | 
|                                             |   |       GBP |       GBP |          | 
+---------------------------------------------+---+-----------+-----------+----------+ 
|                                    Cash     |   |   152,991 |   491,907 |  438,340 | 
|                                    at       |   |           |           |          | 
|                                    bank     |   |           |           |          | 
|                                    and      |   |           |           |          | 
|                                    in       |   |           |           |          | 
|                                    hand     |   |           |           |          | 
+---------------------------------------------+---+-----------+-----------+----------+ 
|                                             |   |           |           |          | 
+---------------------------------------------+---+-----------+-----------+----------+ 
|                                    Net      |   |   152,991 |   491,907 |  438,340 | 
|                                    cash     |   |           |           |          | 
|                                    position |   |           |           |          | 
+---------------------------------------------+---+-----------+-----------+----------+ 
|                                             |   |           |           |          | 
+---------------------------------------------+---+-----------+-----------+----------+ 
 
 
 
 
 
 
 
 
11.    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 these financial statements. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IR QQLFLKXBZBBB