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INDI Indus Gas Limited

51.65
4.75 (10.13%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Indus Gas Limited LSE:INDI London Ordinary Share GG00B39HF298 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  4.75 10.13% 51.65 48.80 54.50 1 16:35:25
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Drilling Oil And Gas Wells 63.04M 30.88M 0.1688 2.78 85.81M

Indus Gas Limited Half-year Report (8745S)

29/12/2016 7:00am

UK Regulatory


Indus Gas (LSE:INDI)
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TIDMINDI

RNS Number : 8745S

Indus Gas Limited

29 December 2016

For Immediate Release

Indus Gas Limited

("Indus" or "the Company")

Interim Results

Indus Gas Limited (AIM:INDI.L), an oil & gas exploration and development company with assets in India, is pleased to report its interim results for the six month period ending 30 September 2016.

Consolidated reported adjusted revenues, operating profit and profit before tax for the interim period ending 30 September 2016 were US$ 27.39m (US$ 22.63m interim 2015), US$ 22.33m (US$ 16.78m interim 2015) and US$ 22.61m (US$ 14.27m interim 2015) respectively.

The Company has continued to make provision for a notional deferred tax liability of US$ 9.94m (US$ 7.79m interim 2015), in accordance with IFRS requirements.

The integrated Field Development Plan in respect of about 2000 sq. kms. outside of the 176 sq. kms. SGL area is under examination by the Directorate General of Hydrocarbons. A revised Field Development Plan in respect of the SGL area for the enhancement of production to about 80 mmscfd has recently been submitted to Management Committee for approval.

The Company continues to realise US$5 per mmBtu in respect of its existing gas sales contract. Discussions for the second contract with GAIL and RRVUNL for the additional gas supplies to the 160 MW turbine at Ramgarh are expected to be finalized in first quarter of 2017. The gas turbine has been procured by RRVUNL and the gas price needs to be mutually agreed. Discussions are also being held for finalising the gas pipeline to evacuate additional gas supply from the Non-SGL area of the block.

Commenting, Peter Cockburn, Chairman of Indus, said:

"Indus has made good progress in the period and continues to see consistent growth in revenue and profits. The revenues are now expected to increase substantially once the additional gas supplies commence."

For further information please contact:

 
 Indus Gas Limited 
  Peter Cockburn                         c/o +44 (0)20 76145900 
 Arden Partners plc 
  Steve Douglas / Patrick Caulfield      +44 (0)20 7614 5900 
 Bell Pottinger PR 
  Lorna Cobbett                          +44 (0)777 1344 781 
 

Indus Gas Limited and its subsidiaries

Unaudited Condensed Consolidated Interim Financial Statements

30 September 2016

Unaudited Condensed Consolidated Statement of Financial Position

(All amounts inUS$, unless otherwise stated)

 
                                   Notes           As at           As at            As at 
                                            30 September    30 September    31 March 2016 
                                                    2016            2015 
                                             (Unaudited)     (Unaudited)        (Audited) 
 ASSETS 
 Non-current assets 
 Intangible assets: exploration 
  and evaluation assets               7                -               -                - 
 Property, plant and equipment       8       599,706,703     522,510,609      562,441,955 
 Tax assets                                    1,962,498       1,483,713        1,735,438 
 Other assets                                        885           6,225              885 
 Total non-current assets                    601,670,086     524,000,547      564,178,278 
                                          --------------  --------------  --------------- 
 Current assets 
 Inventories                                   4,549,391       4,265,838        4,113,607 
 Trade receivables                             2,973,857       4,304,910        3,266,738 
 Advance for expenditure to 
  related party                     11        12,003,316               -                - 
 Other current assets                          7,204,623         186,186          238,879 
 Cash and cash equivalents                    10,316,555     106,023,268       61,081,916 
 Total current assets                         37,042,742     114,780,202       68,701,140 
                                          --------------  --------------  --------------- 
 Total assets                                638,717,828     638,780,749      632,879,418 
                                          ==============  ==============  =============== 
 
 LIABILITIES ANDEQUITY 
 Shareholders' equity 
 Share capital                                 3,619,443       3,619,443        3,619,443 
 Additional paid-in capital                   46,733,689      46,733,689       46,733,689 
 Currency translation reserve                (9,313,781)     (9,313,781)      (9,313,781) 
 Merger reserve                               19,570,288      19,570,288       19,570,288 
 Share option reserve                                  -         324,865         - 
 Retained earnings                            55,923,065      33,702,917       43,256,305 
 Total shareholders' equity                  116,532,704      94,637,421      103,865,944 
                                          --------------  --------------  --------------- 
 

Unaudited Condensed Consolidated Statement of Financial Position (Contd.)

(All amounts in US $, unless otherwise stated)

 
                                   Notes           As at           As at         As at 
                                            30 September    30 September      31 March 
                                                    2016            2015          2016 
                                             (Unaudited)     (Unaudited)     (Audited) 
 
 LIABILITIES 
 Non-current liabilities 
 Long term debt , excluding 
  current portion                    9       262,221,896     305,040,754   283,779,293 
 Provision for decommissioning                 1,218,750       1,353,405     1,132,726 
 Deferred tax liabilities (net)               50,387,937      34,234,802    40,445,531 
 Payable to related parties, 
  excluding current portion         11       132,271,106     124,208,932   128,107,609 
 Deferred revenue                             25,563,995      25,563,995    25,563,995 
 Total non-current liabilities               471,663,684     490,401,888   479,029,154 
                                          --------------  --------------  ------------ 
 Current liabilities 
 Current portion of long term 
  debt                               9        44,923,382      20,864,714    37,556,739 
 Current portion payable to 
  related parties                   11           299,187      27,631,649     7,175,123 
 Accrued expenses and other 
  liabilities                                    221,785         167,991       175,372 
 Deferred revenue                              5,077,086       5,077,086     5,077,086 
 Total current liabilities                    50,521,440      53,741,440    49,984,320 
                                          --------------  --------------  ------------ 
 Total liabilities                           522,185,124     544,143,338   529,013,474 
                                          --------------  --------------  ------------ 
 Total liabilities and equity                638,717,828     638,780,749   632,879,418 
                                          ==============  ==============  ============ 
 

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Statement of Comprehensive Income

(All amounts in US $, unless otherwise stated)

 
                           Notes     Six months ended     Six month ended 
                                    30 September 2016    30September 2015 
                                            Unaudited           Unaudited 
------------------------  -------  ------------------  ------------------ 
 
Revenue                                    27,393,016          22,631,938 
Cost of sales                             (4,013,643)         (4,137,020) 
Administrative expenses                   (1,048,144)         (1,717,973) 
 
Profit from operations                     22,331,229          16,776,945 
                                   ------------------  ------------------ 
Foreign exchange gain                         277,888              42,505 
Interest expense                                    -         (2,553,065) 
Interest income                                    50                  75 
Profit before tax                          22,609,167          14,266,460 
                                   ------------------  ------------------ 
 
Income taxes 
 -Deferred tax charge                     (9,942,407)         (7,789,480) 
                                   ------------------  ------------------ 
 
 
 
 

Profit for the period (attributable 12,666,7606,476,980

 
 to the shareholders 
  of the Group) 
                                                          -----------  ---------- 
 Total comprehensive 
  income for the period(attributable 
  to the shareholders 
  of the Group)                                            12,666,760   6,476,980 
                                                          -----------  ---------- 
 Earnings per share                                   12 
 Basic                                                           0.07        0.04       0.01       0.01 
 Diluted                                                         0.07        0.04       0.01       0.01 
 Par value of each 
  share in GBP                                                   0.02        0.01       0.01 
 
 

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Statement of Changes in Equity

(All amounts in US $, unless otherwise stated)

 
                       Common Stock         Additional    Currency       Merger      Share     Retained        Total 
                                              paid-in    translation     reserve    option     earnings    stockholders' 
                                              capital      reserve                  reserve                   equity 
---------------  ------------------------  -----------  ------------  -----------  --------  -----------  -------------- 
                       Number Amount 
---------------  ------------------------  -----------  ------------  -----------  --------  -----------  -------------- 
 Balance as at 
  1 April 
  2016            182,973,924   3,619,443   46,733,689   (9,313,781)   19,570,288         -   43,256,305     103,865,944 
---------------  ------------  ----------  -----------  ------------  -----------  --------  -----------  -------------- 
 Profit for the 
  period               -                -            -             -            -         -   12,666,760      12,666,760 
---------------  ------------  ----------  -----------  ------------  -----------  --------  -----------  -------------- 
 Total 
  comprehensive 
  income for 
  the period           -                -            -             -            -         -   12,666,760      12,666,760 
---------------  ------------  ----------  -----------  ------------  -----------  --------  -----------  -------------- 
 Balance as at 
  30 
  September 
  2016            182,973,924   3,619,443   46,733,689   (9,313,781)   19,570,288         -   55,923,065     116,532,704 
---------------  ------------  ----------  -----------  ------------  -----------  --------  -----------  -------------- 
 
 
 
 Balance as at 1 
  April 
  2015             182,973,924   3,619,443   46,733,689   (9,313,781)   19,570,288   324,865   27,225,937   88,160,441 
----------------  ------------  ----------  -----------  ------------  -----------  --------  -----------  ----------- 
 Profit for the 
  period                -                -            -             -            -         -    6,476,980    6,476,980 
 Total 
  comprehensive 
  income for the 
  period                -                -            -             -            -         -    6,476,980    6,476,980 
----------------  ------------  ----------  -----------  ------------  -----------  --------  -----------  ----------- 
 Balance as at 
  30 
  September 2015   182,973,924   3,619,443   46,733,689   (9,313,781)   19,570,288   324,865   33,702,917   94,637,421 
----------------  ------------  ----------  -----------  ------------  -----------  --------  -----------  ----------- 
 

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim FinancialStatements).

Unaudited Condensed Consolidated Statement of Cash Flows

(All amounts in US $, unless otherwise stated)

 
                                                                                          Six months 
                                                                Six months ended               ended 
                                                                    30 September        30 September 
                                                                            2016                2015 
                                                                     (Unaudited)         (Unaudited) 
----------------------------------------------  -------------  -----------------      -------------- 
 (A) Cash flow from operating activities 
 
   Profit before tax                                                  22,609,167          14,266,460 
 
   Adjustments 
 
 Unrealised exchange (gain)/ loss                                      (277,888)               3,961 
 Interest income                                                            (50)                (75) 
 Interest expense                                                              -           2,553,065 
 Depreciation                                                          3,747,737           3,866,696 
 
   Changes in operating assets and 
   liabilities 
 
   Inventories                                                         (435,784)             965,577 
 Trade receivables                                                       292,881           1,025,573 
 Trade and other payables                                              4,405,728           4,233,768 
 Other current and non-current 
  assets                                                             (6,965,744)             120,178 
 Other liabilities                                                      (73,386)              50,482 
                                                               -----------------      -------------- 
 Cash generated from operations                                       23,302,661          27,085,685 
 
   Income taxes paid                                                   (227,060)           (254,926) 
                                                               -----------------      -------------- 
 
   Net cash generated from operating 
   activities                                                         23,075,601          26,830,759 
                                                               -----------------      -------------- 
 
   (B) Cash flow from investing activities 
 Purchase of property, plant and 
  equipment (A)                                                     (50,680,860)        (32,747,077) 
 Interest received                                                            50                  75 
 
   Net cash used in investing activities                            (51,680,816)        (32,747,002) 
                                                               -----------------      -------------- 
 
 
 

Unaudited Condensed Consolidated Statement of Cash Flows

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

 
                                                               Six months ended     Six months ended 
                                                              30 September 2016         30 September 
                                                                                                2015 
                                                                    (Unaudited)          (Unaudited) 
------------------------------------  -----------------  ----------------------  ------------------- 
 (C ) Cash flow from financing 
  activities 
 
   Proceeds from long term debt 
   from banks                                                                      -      44,400,000 
 Proceeds from issue of Multicurrency 
  Medium Term Note("MTN")                                                          -      69,548,283 
 Repayment of long term debt 
  from banks                                                            (14,569,586)     (8,660,000) 
 Proceeds from related party                                                 218,269               - 
 Payment of interest                                                     (9,114,813)     (5,629,949) 
                                                               ---------------------  -------------- 
 
   Net cash (used in)/ generated 
   from financing activities                                            (23,466,160)      99,658,334 
                                                               ---------------------  -------------- 
 
   Net change in cash and cash 
   equivalents                                                          (51,071,374)      93,742,091 
                                                               ---------------------  -------------- 
 
 Cash and cash equivalents at 
  the beginning of the period                                             61,081,916      12,251,533 
 Effect of exchange rate change 
  on cash and cash equivalents                                               306,014      29,644 
                                                               ---------------------  -------------- 
 Cash and cash equivalents at 
  the end of the period                                                   10,316,555     106,023,268 
                                                               ---------------------  -------------- 
 
 Cash and cash equivalents comprises 
  of 
 balances with banks                                                      10,316,555     106,023,268 
                                                               ---------------------  -------------- 
 
 
 

(A) The purchase of property, plant and equipment above, includes additions to exploration and evaluation assets amounting to US$ 18,009,154 (previous period: US$ 31,337,095) transferred to development cost, as explained in Note 7.

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(All amounts in US $, unless otherwise stated)

   1.    INTRODUCTION 

Indus Gas Limited ("Indus Gas" or "the Company") was incorporated in the Island of Guernsey on 4 March2008 pursuant to an Act of the Royal Court of the Island of Guernsey. The Company was set up to act as the holding company of iServices Investments Limited. ("iServices") and Newbury Oil Co. Limited ("Newbury").iServices and Newbury are companies incorporated in Mauritius and Cyprus, respectively. iServices was incorporated on 18 June 2003 and Newbury was incorporated on 17 February 2005. The Company was listed on the Alternative Investment Market (AIM) of the London Stock Exchange on 6 June 2008. Indus Gas through its wholly owned subsidiaries iServices and Newbury (hereinafter collectively referred to as "the Group") is engaged in the business of oil and gas exploration, development and production.

Focus Energy Limited ("Focus"), an entity incorporated in India, entered into a Production Sharing Contract("PSC") with the Government of India ("GOI") and Oil and Natural Gas Corporation Limited ("ONGC") on30 June 1998 for petroleum exploration and development concession in India known as RJ-ON/06 ("the Block"). Focus is the Operator of the Block. On 13 January 2006, iServices and Newbury entered into an interest sharing agreement with Focus and obtained a 65 per cent and 25 per cent share respectively in the Block. Consequent to this, the Group acquired an aggregate of 90 per cent participating interest in the Block and the balance 10 per cent of participating interest is owned by Focus. The participating interest explained above is subject to any option exercised by ONGC in respect of field (already exercised for SGL field as further explained in Note 4).

   2.   BASIS OF PREPARATION 

The unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2016 and are presented in United States Dollar (US$), which is the functional currency of the parent company and other entities in the Group. They have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required in annual financial statements in accordance with International Financial Reporting Standards as adopted by the European union, and should be read in conjunction with the consolidated financial statements and related notes of the Group for the year ended 31 March 2016.

The unaudited condensed consolidated interim financial statements have been prepared on a going concern basis.

The accounting policies applied in these unaudited condensed consolidated interim financial statements are consistent with the policies that were applied for the preparation of the consolidated financial statements for the year ended 31 March 2016.

These unaudited condensed consolidated interim financial statements are for the six months ended 30 September 2016 and have been approved for issue by the Board of Directors.----

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

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

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

   -     IFRS 9 Financial Instruments Classification and Measurement 

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

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

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

   -           IFRS 15 Revenue from Contracts with Customers 

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

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

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

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

   -           IFRS 16Leases 

On January 13, 2016, the IASB issued the final version of IFRS 16, Leases. IFRS 16 will replace the existing leases Standard, IAS 17 Leases, and related interpretations. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset isof low value. The Standard also contains enhanced disclosure requirements for lessees. The effective date for adoption of IFRS 16 is annual periods beginning on or after January 1, 2019 (but not yet endorsed in EU), though early adoption is permitted for companies applying IFRS 15 Revenue from Contracts with Customers.

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

4. JOINTLY CONTROLLED ASSETS

As explained above, the Group through its subsidiaries has an interest sharing arrangement with Focus in the block which under IFRS 11: Joint Arrangements, classified as a 'Joint operation'. All rights and obligations in respect of exploration, development and production of oil and gas resources under the 'Interest sharing agreement' are shared between Focus, iServices and Newbury in the ratio of 10 per cent, 65 per cent and 25 per cent respectively.

Under the PSC, the GOI, through ONGC had an option to acquire a 30 per cent participating interest in any discovered field, upon such successful discovery of oil or gas reserves, which has been declared as commercially feasible to develop.

Subsequent to the declaration of commercial discovery in SGL field on 21 January 2008, ONGC had exercised the option to acquire a 30 per cent participating interest in the discovered fields on 6 June 2008.The exercise of this option would reduce the interest of the existing partners proportionately.

On exercise of this option, ONGC is liable to pay its share of 30 per cent of the SGL field development costs and production costs incurred after 21 January 2008 and are entitled to a 30 per cent share in the production of gas subject to recovery of contract costs as explained below.

The allocation of the production from the field to each participant in any year is determined on the basis of the respective proportion of each participant's cumulative unrecovered contract costs as at the end of the previous year or where there are no unrecovered contract cost at the end of previous year on the basis of participating interest of each such participant in the field. For recovery of past contract cost, production from the field is first allocated towards exploration and evaluation cost and thereafter towards development cost.

On the basis of above, gas production for the period ended 30 September 2016 is shared between Focus, iServices and Newbury in the ratio of 10 percent, 65 percent and 25 percent respectively.

The aggregate amounts relating to jointly controlled assets, liabilities, expenses and commitments related thereto that have been included in the consolidated financial statements are as follows:

 
Particular                              Period ended     Period ended         Year ended 
                                   30 September 2016     30 September      31 March 2016 
                                                                 2015 
                                         (Unaudited)      (Unaudited)          (Audited) 
----------------------------  ----------------------  ---------------  ----------------- 
Non-current assets                       599,706,703      522,510,609        562,441,955 
Current assets                            16,552,707        4,265,838          4,113,607 
Non-current liabilities                    1,218,750        1,353,405          1,132,726 
Current liabilities                          299,187       27,631,649          7,175,123 
Expenses (net of finance 
 income)                                   4,405,728        4,233,768         10,187,655 
Commitments                                        -                -                - 
                                                                       --------------- 
 
 
 

5. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES

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

In preparing these unaudited condensed interim consolidated financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were consistent with those that applied to the consolidated financial statements as at and for the year ended 31 March 2016.

6. SEGMENT REPORTING

Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance. The Company considers that it operates in a single operating segment being the production and sale of gas.

7. INTANGIBLE ASSETS: EXPLORATION AND EVALUATION ASSETS

Intangible assets comprise of exploration and evaluation assets. Movement in intangible assets was as under:

 
                                                      Intangible assets: 
                                                         exploration and 
                                                       evaluation assets 
------------------------------------  ---------------------------------- 
 Balance as at 31 March 2015                                           - 
 Additions (A)                                                31,337,095 
 Transfer to development assets (B)                         (31,337,095) 
 Balance at 30September 2015                                           - 
 Additions (A)                                                29,780,558 
 Transfer to development assets (B)                         (29,780,558) 
 Balance as at 31 March 2016                                           - 
 Additions (A)                                                18,009,154 
 Transfer to development assets (B)                         (18,009,154) 
 Balance as at 30 September 2016                                      - 
 
 

(A) The above includes borrowing costs of US$ 133,303for the period ended 30 September 2016(30 September 2015: US$439,064 and 31 March 2016: US$2,034,442). The weighted average capitalisation rate on funds borrowed generally is 5.89 per cent per annum (30 September 2015: 5.68 per cent per annum and 31 March 2016: 5.84 per cent per annum).

(B) On 19 November 2013, Focus Energy Limited submitted an integrated declaration of commerciality (DOC) to the Directorate General of Hydrocarbons, ONGC, the Government of India and the Ministry of Petroleum and Natural Gas. Upon submission of DOC, exploration and evaluation cost incurred on SSF and SSG field was transferred to development cost. Focus continues to carry out further appraisal activities in the Block, and exploration and evaluation cost incurred subsequent to 19 November 2013, to the extent considered recoverable as per DOC submitted by Focus, is immediately transferred on incurrence to development assets.

8. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment comprise of the following:

 
 Cost            Land      Extended    Development/   Bunk        Vehicles    Other       Capital            Total 
                           well         Production     houses                  assets     work-in-progress 
                           test         assets 
                           equipment 
--------------  --------  ----------  -------------  ----------  ----------  ----------  -----------------  ------------ 
 Balance as 
  at 1 April 
  2016           167,248   3,737,654    580,789,054   5,917,523   4,576,803   1,506,289          1,227,969   597,922,540 
 Additions             -         133    41,593,793            -           -       7,541              2,092    41,603,559 
--------------  -------- 
 Balance as 
  at 30 
  September 
  2016           167,248   3,737,787   622,382,847    5,917,523   4,576,803   1,513,830      1,230,061       639,526,099 
--------------  --------  ----------  -------------  ----------  ----------  ----------  -----------------  ------------ 
 Accumulated 
 depreciation 
 Balance as 
  at 1 April 
  2016                 -   1,629,759     23,880,916   5,015,047   3,502,013   1,452,850                  -    35,480,585 
 Depreciation 
  for the 
  period               -     126,783      3,747,737     201,751     226,856      35,684                  -     4,338,811 
--------------  --------  ----------  -------------  ----------  ----------  ----------  -----------------  ------------ 
 Balance as 
  at 30 
  September 
  2016                 -   1,756,542     27,628,653   5,216,798   3,728,869   1,488,534                  -    39,819,396 
--------------  --------  ----------  -------------  ----------  ----------  ----------  -----------------  ------------ 
 Carrying 
  value 
 As at 30 
  September 
  2016           167,248   1,981,245    594,754,194    700,7250     847,934      25,296          1,230,061   599,706,703 
--------------  --------  ----------  -------------  ----------  ----------  ----------  -----------------  ------------ 
 
 
 
 Cost                                          Land   Extended    Development/         Bunk    Vehicles       Other              Capital         Total 
                                                      well test    Production        Houses                  assets     work-in-progress 
                                                      equipment    assets 
--------------  -----------------------------------  ----------  -------------  -----------  ----------  ----------  -------------------  ------------ 
 Balance as 
  at 1 April 
  2015                                      167,248   3,737,654    491,344,442    5,917,523   4.576,803   1,492,748            1,189,853   508,426,271 
 Additions                                        -           -     43,297,264            -           -       8,981               32,400    43,338,645 
--------------  -----------------------------------  ----------  -------------  -----------  ----------  ----------  -------------------  ------------ 
 Balance as 
  at 30 
  September 
  2015                        167,248                 3,737,654    534,641,706   5,917,523    4,576,803   1,501,729       1,222,253        551,764,916 
--------------  -----------------------------------  ----------  -------------  -----------  ----------  ----------  -------------------  ------------ 
 
 Accumulated depreciation 
 Balance as 
  at 1 April 
  2015                                            -   1,369,651     14,506,669    4,516,785   2,878,730   1,359,963                    -    24,631,798 
 Depreciation 
  for the 
  period                                          -     134,720      3,866,696      259,762     311,831      49,500                    -     4,622,509 
--------------  -----------------------------------  ----------  -------------  -----------  ----------  ----------  -------------------  ------------ 
 Balance as 
  at 30 
  September 
  2015                                            -   1,504,371     18,373,365   4,776,547    3,190,561   1,409,463                    -    29,254,307 
 
 Carrying 
  value 
 As at 30 
  September 
  2015                                      167,248   2,233,283    516,268,341   1,140,9750   1,386,242      92,266            1,222,253   522,510,609 
--------------  -----------------------------------  ----------  -------------  -----------  ----------  ----------  -------------------  ------------ 
 
 
 
                      Land    Extended   Development/Production       Bunk         Vehicles       Other       Capital              Total 
                             well test           assets               houses                     assets   work-in-progress 
 Cost                        equipment 
 Balance 
  as at 1 
  April 2015       167,248   3,737,654              491,344,442       5,917,523   4,576,803   1,492,748          1,189,853   508,426,271 
 Additions               -           -               89,444,612               -           -      13,541             38,116    89,496,269 
 Balance 
  as at 31 
  March 2016       167,248   3,737,654              580,789,054       5,917,523   4,576,803   1,506,289          1,227,969   597,922,540 
--------------  ----------  ----------  -----------------------  --------------  ----------  ----------  -----------------  ------------ 
 
  Accumulated Depreciation 
 Balance 
  as at 1 
  April 2015             -   1,369,651               14,506,669       4,516,785   2,878,730   1,359,963                  -    24,631,798 
 Depreciation 
  for the 
  year                   -     260,108                9,374,247         498,262     623,283      92,887                  -    10,848,787 
 Balance 
  as at 31 
  March 2016             -   1,629,759               23,880,916       5,015,047   3,502,013   1,452,850                  -    35,480,585 
--------------  ----------  ----------  -----------------------  --------------  ----------  ----------  -----------------  ------------ 
 
 Carrying 
  value as 
  at 31 March 
  2016             167,248   2,107,895              556,908,138         902,476   1,074,790      53,439          1,227,969   562,441,955 
--------------  ----------  ----------  -----------------------  --------------  ----------  ----------  -----------------  ------------ 
 
 
 

Borrowing costs capitalised for the period ended 30 September 2016 amounted to US$ 13,657,072(30 September 2015: US$ 9,530,722 and 31 March 2016: US$ 23,304,470).

9. LONG TERM DEBT

From Banks

 
                                  Maturity    30 September   30 September      31 March 
                                                      2016           2015          2016 
                                               (Unaudited)    (Unaudited)     (Audited) 
------------------------------  -----------  -------------  -------------  ------------ 
 Non-current portion of long 
  term debt                      2018/2021     189,051,995    235,431,533       210,454,996 
 Current portion of long term 
  debt from banks                              42,301,806      18,396,553        34,932,179 
 Total                                         231,353,801    253,828,086   245,387,175 
-------------------------------------------  -------------  -------------  ------------ 
 

Current interest rates are variable and weighted average interest for the period was5.89per cent per annum (30 September 2015: 5.68 per cent per annum and 31 March 2016:5.84 per cent per annum). The fair value of the above variable rate borrowings are considered to approximate their carrying amounts.

The term loans are secured by following:-

-- First charge on all project assets of the Group both present and future, to the extent of SGL Field Development and to the extent of capex incurred out of this facility in the rest of RJ-ON/6 field.

-- First charge on the current assets (inclusive of condensate receivable) of the Group to the extent of SGL field.

-- First Charge on the entire current assets of the SGL Field and to the extent of capex incurred out of this facility in the rest of RJON/6 field.

From Bond

 
                                 Maturity    30 September      30 September      31 March 
                                                     2016              2015          2016 
                                              (Unaudited)       (Unaudited)     (Audited) 
------------------------------  ----------  -------------  ----------------  ------------ 
 Non-current portion of long 
  term debt                        2018        73,169,901        69,609,221        73,324,297 
 Current portion of long term 
  debt                                          2,621,576         2,468,161         2,624,560 
 Total                                         75,791,477        72,077,382    75,948,857 
------------------------------------------  -------------  ----------------  ------------ 
 

During the year ended 31 March 2016, the Group has issued Singapore Dollar ("SGD") 100 million (USD74.18 million) notes under the US$ 300 million MTN programme which carries interest at the rate of 8 percent per annum. These notes are unsecured notes and are fully repayable at the end of 3 years i.e. April2018.Further, interest on these notes is paid semi-annually.

10. RELATED PARTY TRANSACTIONS

The related parties for each of the entities in the Group have been summarised in the table below:

 
 Nature of the relationship        Related Party's Name 
--------------------------------  ----------------------------------- 
 
 I. Holding Company                Gynia Holdings Ltd. 
 
 II. Ultimate Holding Company      Multi Asset Holdings Ltd. (Holding 
                                    Company of Gynia Holdings Ltd.) 
 III. Enterprise over which        Focus Energy Limited 
  Key Management Personnel (KMP) 
  exercise control (with whom 
  there are transactions) 
 

Disclosure of transactions between the Group and related parties and the outstanding balances as of 30 September 2016, 30 September 2015 and 31 March 2016are as follows:

Transactions during the period

 
 Particulars                                Period ended      Period ended 
                                            30 September      30 September 
                                                    2016              2015 
--------------------------------  ------  --------------  ---------------- 
 Transactions with the Holding 
  Company 
 Interest paid                                 4,163,497       3,920,098 
 
 Transactions with KMP 
 Short term employee benefits                     94,587         233,216 
 
 Entity over which KMP exercise 
  control 
 Share of cost incurred by the 
  Focus in respect of the Block               28,451,839      32,193,085 
 Remittances                                  48,013,950      28,852,000 
 Expenses reimbursed                             452,637         445,315 
----------------------------------------  --------------  -------------- 
 
 

Amount outstanding towards related parties

 
 Particulars                                 As at           As at        As at 
                                      30 September    30 September     31 March 
                                              2016            2015         2016 
----------------------------------  --------------  --------------  ----------- 
 Entity over which KMP exercise 
  control 
 Payable to Focus Energy Limited                 -      27,502,572     6,916,510 
 Advance for expenditure to             12,003,316               -             - 
  related party 
 Payable with the Holding Company 
 Payables to Gynia Holding 
  Limited*                             132,271,106     124,208,932   128,107,609 
 Payable to KMP 
 Employee obligation                       299,187         129,077       258,613 
----------------------------------  --------------  --------------  ------------ 
 
 

*including interest

Directors' remuneration

Directors' remuneration is included under administrative expenses, evaluation and exploration assets or development assets in the unaudited consolidated financial statements allocated on a systematic and rational manner.

11.ADVANCE FOR EXPENSES/PAYABLE TO RELATED PARTIES

 
 Particulars                                As at           As at                    As at 
                                     30 September    30 September                 31 March 
                                             2016            2015                     2016 
---------------------------------  --------------  --------------  ----------------------- 
 PAYABLE 
 Current 
 Payable to Focus Energy Limited                -      27,502,572                6,916,510 
 Payable to directors                     299,187         129,077                  258,613 
 Other than current 
 Payables to Gynia Holding 
  Limited*                            132,271,106     124,208,932              128,107,609 
 RECEIVABLE 
 Current 
 Advance for expenditure to            12,003,316               -                        - 
  related party 
---------------------------------  --------------  --------------  ----------------------- 
 

Advance for expenditure/payable to Focus

Receivable from/payable to Focus represents advance for expenditure given to related party in respect of the Group's share of contract costs, for its participating interest in Block RJ-ON/6 pursuant to the terms of Agreement for Assignment dated13 January 2006 and its subsequent amendments from time to time. Advance for expenditure to Focus for meeting company's share of expenses in the block RJ-ON-6/SGL Field.

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

Liability payable to Gynia

* Borrowings from Gynia Holdings Ltd. carry interest rate of 6.5 per cent per annum compounded annually. During the current year, the entire outstanding balance (including interest) was made subordinate to the loans taken from the banks (detailed in note 13) and therefore, is payable along with related interest subsequent to repayment of bank loan in year 2024.

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

12. EARNINGSPER SHARE

The calculation of the earnings per share is based on the profits attributable to ordinary shareholders divided by the weighted average number of shares issued during the period.

Calculation of basic and diluted earnings per share is as follows:

 
                                                Period ended         Period ended 
                                           30 September 2016      30September2015 
----------------------------  ---------  -------------------  ------------------- 
 
 Profit attributable 
  to shareholders of Indus 
  Gas Limited, for basic 
  and dilutive                                    12,666,760          6,476,980 
 Weighted average number 
  of shares (used for 
  basic profit per share)                        182,973,924        182,973,924 
 No. of equivalent shares 
  in respect of outstanding 
  options                                                  -            311,260 
 Diluted weighted average 
  number of shares (used 
  for diluted profit per 
  share                                          182,973,924        183,285,184 
 
 Basic earnings per share 
  (US$)                                                0.07*              0.04* 
 Diluted earnings per 
  share (US$)                                          0.07*              0.04* 
---------------------------------------  -------------------  ----------------- 
 
 

*Rounded off to the nearest two decimal places.

13. COMMITMENTS AND CONTINGENCIES

At 30 September 2016, the Group had capital commitments of US$ Nil (30 September 2015: US$ Nil; 31 March 2016: US$ Nil) in relation to property, plant & equipment - development/producing assets, in the Block.

The Group has no contingencies as at 30 September 2016(30 September 2015: Nil; 31 March 2016: Nil).

14. FINANCIAL RISK MANAGEMENT

The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 March 2016.

15. INCOME TAX CREDIT

Indus Gas profits are taxable as per the tax laws applicable in Guernsey where zero per cent tax rate has been prescribed for corporates. Accordingly, there is no tax liability for the Group in Guernsey. iServices and Newbury being participants in the PSC are covered under the Indian Income tax laws as well as tax laws for their respective countries. However, considering the existence of double tax avoidance arrangement between Cyprus and India, and Mauritius and India, profits in Newbury and iServices are not likely to attract any additional tax in their local jurisdiction. Under Indian tax laws, Newbury and iServices are allowed to claim the entire expenditure in respect of the Oil Block incurred until the start of commercial production (whether included in the exploration and evaluation assets or development assets) as deductible expense in the first year of commercial production or over a period of 10 years. The Company has opted to claim the expenditure in the first year of commercial production. As the Group has commenced commercial production in 2011 and has generated profits in Newbury and iServices, the management believes there is reasonable certainty of utilisation of such losses in the future years and thus a deferred tax asset has been created in respect of these.

16. BASIS OF GOING CONCERNASSUMPTION

As at 30 September 2016, the Group had current liabilities amounting to US$ 50,521,440majority of which is towards current portion of borrowings from banks and related party, Focus. The Group expects to meet its next year (year ended 30 September 2016) obligation towards existing bank loans from internal generation of cash from operations.

17. FINANCIAL INSTRUMENTS

A summary of the Group's financial assets and liabilities by category is mentioned in the table below.

The carrying amounts of the Group's financial assets and liabilities as recognised at the end of the reporting periods under review may also be categorised as follows:

 
                                                         30 September 2016       30 September   31 March 2016 
                                                                                         2015 
------------------------------------------------------  ------------------  -----------------  -------------- 
 Non-current assets 
 Loans and receivables 
 -Security deposits                                                    885              6,225             885 
 Current assets 
 Loans and receivables 
 -Trade receivables                                              2,973,857          4,304,910       3,266,738 
 -Cash and cash equivalents                                     10,316,555        106,023,268      61,081,916 
------------------------------------------------------  ------------------  -----------------  -------------- 
 Total financial assets 
  under loans and receivables                                   13,291,297        110,334,403      64,349,539 
------------------------------------------------------  ------------------  -----------------  -------------- 
 
   Financial liabilities 
   measured at amortised 
   cost: 
   Non-current liabilities 
 - Long term debt                                                  262,221,896    305,040,754       283,799,293 
 - Payable to related 
  parties                                                          132,271,106    124,208,932       128,107,609 
 
   Current liabilities 
 - Current portion long 
  term debt                                                         44,923,382     20,864,714        37,556,739 
 
   *    Current portion of payable to related parties                  299,187     27,631,649         7,175,123 
 
   *    Accrued expenses and other liabilities                         221,785        167,991           175,372 
------------------------------------------------------  ----------------------  -------------  ---------------- 
 Total financial liability 
  measured at amortised 
  cost                                                             439,937,356    477,914,040       456,794,136 
------------------------------------------------------  ----------------------  -------------  ---------------- 
 
 

The fair value of the financial assets and liabilities described above closely approximates their carrying value on the statement of financial position dates.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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December 29, 2016 02:00 ET (07:00 GMT)

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