TIDMOPG
RNS Number : 0736H
OPG Power Ventures plc
01 December 2020
1 December 2020
OPG Power Ventures plc
("OPG", the "Group" or the "Company")
Unaudited results for the six months ended 30 September 2020
OPG (AIM: OPG), the developer and operator of power generation
plants in India, announces its unaudited results for the six months
ended 30 September 2020 ("H1 FY21").
Highlights
-- Profit before tax from continuing operations increased by
32.0 per cent to GBP12.8m (H1 FY20: GBP9.7m)
-- Operating profit includes income of GBP9.6m with respect to historical contractual claims
-- Diluted EPS increased by 48.2 per cent to 2.92p (H1 FY20: 1.97p)
-- In June 2020, approx. GBP21.1 million (Rs.2 billion) were
raised through non-convertible debentures (NCDs) issue with a three
years term and coupon rate of 9.85%; the NCD's proceeds were used
to prepay the FY21 and FY22 (i.e. up to March 2022) principal term
loans obligations
-- GBP8.2m term loan principal repayment (excluding repayment of
term loan from NCDs) in H1 FY21, representing 2.04 pence per share
accretion in value to shareholders' equity
-- Net debt, including NCDs, reduced by 44.6 per cent to
GBP34.9m (GBP63.0m at 30 September 2019, GBP53.4m at 31 March
2020)
-- H1 FY21 total generation of 0.8 billion units (H1 FY20: 1.4 billion units)
-- Average tariff in H1 FY21 was Rs5.60 (H1 FY20: Rs5.66),
tariff reduction is primarily due to covid-19 discount extended to
the captive consumers
Summary financial information (including historic financial
data)
HY 30 Sep HY 30 Sep FY 31 Mar
GBP million 20 19 20
Revenue 36.1 78.4 154.0
---------- ---------- ----------
Adjusted EBITDA* 19.4 18.0 31.2
---------- ---------- ----------
Profit Before Tax 12.8 9.7 14.5
---------- ---------- ----------
Profit After Tax 11.8 8.2 8.0
---------- ---------- ----------
Diluted Earnings Per Share
("EPS") (pence) 2.92 1.97 2.09
---------- ---------- ----------
* Adjusted EBITDA is calculated as Operating profit before
depreciation, amortisation and share based payments and includes
income with respect to previously contracted claims of GBP9.6m
Arvind Gupta, Chairman, commented : "I am proud to say that OPG
is coming out from the COVID-19 pandemic as a stronger and more
resilient Company. OPG delivered very strong cash generation during
the reporting period, and OPG has continued deleveraging as part of
its ongoing strategy. COVID-19 and the lockdown had a severe impact
on overall industrial activities in India. However, the power
demand has gradually increased during the first half of FY21 with
OPG remaining profitable, cash generative and has met all its debt
obligations."
Presentation
There will be a virtual presentation on the Investor Meet
Company platform for investors and analysts at 11 am on Tuesday, 8
December 2020. Those wishing to attend should register for the
presentation at:
https://www.investormeetcompany.com/opg-power-ventures-plc/register-investor
For further information, please visit www.opgpower.com or
contact:
+44 (0) 782 734
OPG Power Ventures PLC 1323
Dmitri Tsvetkov
Cenkos Securities (Nominated Adviser +44 (0) 20 7397
& Broker) 8900
Russell Cook/ Stephen Keys
+44 (0) 20 7920
Tavistock (Financial PR) 3150
Simon Hudson / Nick Elwes
Chairman's Statement
Introduction
In 2018, the Board took the decision to focus on our profitable,
long-life assets in Chennai, and given the high cost of borrowing
in India, to prioritise maintaining its track record of timely debt
repayments in order to strengthen the balance sheet and to grow
shareholders' equity value. This strategy, we believe, will deliver
value to shareholders with free cash flows providing significant
returns to our shareholders and opportunities to grow the business
further.
The increase in equity value, since the adoption of this
strategy is:
FY18 - FY20 H1 FY20*
--------------------------------------------- ------------ ---------
Term loan principal repayments (GBP
million*) 60.9 8.2
--------------------------------------------- ------------ ---------
Addition to shareholders value as
a result of term loan principal repayments
per share (pence) 15.6 2.0
--------------------------------------------- ------------ ---------
* Based upon INR/GBP closing exchange rate at 30 September 2020
of GBP1=94.74
Events of H1 FY20 have been dominated by the global impact of
Covid-19 while the Board remains convinced that our strategy of
maintaining operational excellence and paying down borrowings has
helped the Company to mitigate the impact of the pandemic while
providing a sound platform for the long term benefit of all our
stakeholders.
Operations Summary
Chennai - Total generation maintained at 0.83 billion kWh and
PLF of 46%
HY HY FY
30 Sep 2020 30 Sep 2019 31 Mar 2020
Generation (million kWh)
------------- ------------- -------------
414 MW Plant generation 635 1,296 2,468
------------- ------------- -------------
Additional "deemed" offtake at
Chennai 196 144 247
------------- ------------- -------------
Total Generation (MUe)(1) 831 1,440 2,716
------------- ------------- -------------
Reported Average PLF (%) 46% 79% 75%
------------- ------------- -------------
Average Tariff Realised (Rs) 5.60 5.66 5.67
------------- ------------- -------------
Note: (1) MU / Mue - millions units or kWh of equivalent
power
Focus on Maximising Asset Performance and Deleveraging
Total Generation at the Chennai plant, including deemed
generation, in H1 FY21 was 0.83 billion units, 42 per cent less
than in H1 FY20. This decrease in generation was due to the
reduction in demand caused by the disruption in economic activities
resulting from the nationwide government imposed lockdown to
contain Covid-19. Average tariffs realised in H1 FY21 were Rs 5.60
per kWh (H1 FY20: Rs5.66; FY20: Rs5.67 per kWh). Average tariffs in
October 2020 were Rs5.56 per kWh.
Raw material costs have also been impacted by Covid-19 such that
the average landed cost of coal fell to GBP42.1 (Rs 3,984) per
tonne in H1 FY21, ( GBP47.9 or Rs 4,305 per tonne in FY20).
The Company recognised income of GBP9.6m (Rs.0.9 billion) with
respect to historical contractual claim s which were accumulated
over several periods. The payments were collected from the
customers subsequent to 30 September 2020.
Despite the challenges of the period as mentioned above, the
Company has continued to pay down the debt and repaid GBP8.2m term
loan from internal accruals and GBP21.2m term loan from placing the
Non-convertible Debentures ("NCDs"), during first half of FY21. As
at 30 September 2020 net debt was GBP34.9m (30 September 2019:
GBP63.0m; 31 March 2020: GBP53.4m) while total borrowings were
GBP44.3 million, comprised of GBP21.1 million of NCDs and GBP21.8
million of existing term loans, with scheduled repayments spread
from June 2022 to June 2024, and working capital loans of GBP1.4
million. The remainder of the Chennai plant term loans are
scheduled to be fully repaid by Unit II Q3 2023, Unit III in Q4
2023 and Unit IV in Q2 2024.
62 MW Karnataka Solar projects
Our Karnataka solar projects are situated north of Bengaluru.
All plants are operational and have met all critical operating
metrics. Currently the projects are receiving a tariff of Rs 4.36
per kWh. We expect the Capacity Utilisation Factor to be 19-20 per
cent during FY21. As previously announced, the Board has decided to
focus on the core thermal power plants business in Chennai and the
Karnataka solar projects remain in a disposal process.
The Indian Economy and Power Sector
As a consequence of COVID-19 the IMF's World Economic Update in
October 2020 estimated that the Indian annual GDP growth rate would
contract by 10.3 per cent in FY20 with growth returning to 8.8 per
cent in FY21.
The Reserve Bank of India, the country's central bank and
banking regulator, has taken several steps to mitigate the negative
impact of the lockdown on the economy through various monetary
policy measures: including reduction in repo and reverse repo
rates, moratorium on loan repayments, 90 days freeze on
non-performing assets declaration, helping MSMEs with stimulus
packages and credit lines for incentivising industries. These
measures coupled with the easing of lockdown restrictions in a
phased manner is helping economic activity to resume.
During the initial lockdown the total Indian power consumption
reduced by approximately 25 per cent primarily due to a decrease in
industrial demand for electricity. As the restrictions were eased,
power consumption has gradually increased, during September 2020
power consumption started to grow and increased by 4.6 per cent
more than the corresponding month last year and in October 2020
country wide consumption grew by 13.4 per cent.
Indian power consumption per capita was only 1,208 kWh in FY
2020. It is expected that this will catch up with developed
economies with similar social and economic conditions over
time.
India has moved up 14 positions to rank 63 globally, its highest
ever, in the World Bank's annual Ease of Doing Business table in
the latest World Bank, Doing Business 2020 Report. The resultant
impact is expected to be increased economic activity and
industrialisation, contributing to increasing power demand.
Outlook
We expect that the Company's FY21 generation and average
realised tariff will reduce in comparison with FY20. However, the
Company anticipates to benefit from projected lower coal prices.
Despite the impact of COVID-19, OPG remained a profitable and cash
generative company and was able to repay its debt in advance of the
committed repayment schedule.
Collection of GBP9.6 million of previously contracted claims
subsequent to 30 September 2020 further strengthened the Group's
financial position and liquidity.
We believe that the medium-term and long-term fundamentals
remain unchanged and post-COVID-19 recovery the Company expects to
prosper as management seeks to deliver its long term, profitable
and sustainable business model.
Consolidated statement of financial
position
As at 30 Sep 2020
(All amount in GBP, unless
otherwise stated)
As at As at As at
Notes 30 Sep 2020 30 Sep 2019 31 Mar 2020
------------------------------------ ----- ----------- ----------- -----------
Assets
Non-current assets
Intangible assets 13 5,716 17,201 9,045
Property, plant and equipment 14 186,412,926 210,117,169 192,469,395
Other long-term assets 405,534 550,333 509628
Restricted cash 26,567 12,776 26,645
186,850,743 210,697,479 193,014,713
----------- ----------- -----------
Current assets
Inventories 7,866,415 5,843,949 11,480,099
Trade and other receivables 15 24,238,726 30,520,861 26,901,986
Other short-term assets 6,837,783 5,271,823 6,316,735
Current tax assets (net) 1,292,128 1,572,570 1,330,684
Restricted cash 4,859,556 26,895,190 7,497,967
Cash and cash equivalents 16 9,374,849 7,710,151 3,438,830
7(a),
Assets held for sale 7(b) 14,720,769 51,990,582 46,356,680
----------- ----------- -----------
69,190,226 129,805,126 103,322,981
----------- ----------- -----------
Total assets 256,040,969 340,502,605 296,337,694
=========== =========== ===========
Equity and liabilities
Equity
Share capital 58,909 57,024 58,909
Share premium 131,451,482 129,125,915 131,451,482
Other components of equity (3,746,172) 9,562,012 (1,322,987)
Retained earnings 39,587,495 29,566,684 27,818,474
Equity attributable to owners
of the Company 167,351,714 168,311,635 158,005,878
Non-controlling interests 881,530 1,485,916 497,955
----------- ----------- -----------
Total equity 168,233,244 169,797,551 158,503,833
----------- ----------- -----------
Liabilities
Non-current liabilities
Borrowings 18 21,740,994 43,988,413 33,081,456
Non-Convertible Debentures 18 21,110,407 - -
Trade and other payables 176,936 156,052 169,373
Provision for pledged deposits - 13,192,917 -
Deferred tax liabilities (net) 12 7,485,509 4,529,358 5,723,791
50,513,846 61,866,740 38,974,620
----------- ----------- -----------
Current liabilities
Borrowings 18 1,430,290 26,754,827 23,746,229
Trade and other payables 35,358,949 46,210,661 41,663,989
Other liabilities 504,640 41,861 582,240
Liabilities classified as held
for sale 7(b) - 35,830,965 32,866,783
37,293,879 108,838,314 98,859,241
----------- ----------- -----------
Total liabilities 87,807,725 170,705,054 137,833,861
----------- ----------- -----------
Total equity and liabilities 256,040,969 340,502,605 296,337,694
=========== =========== ===========
The notes are an integral part of these consolidated financial
statements.
The financial statements were authorised for issue by the board
of directors on 30 November 2020 and were signed on its behalf by
Arvind Gupta, Chairman and Dmitri Tsvetkov, Chief Financial
Officer
Consolidated statement of comprehensive income
For the six months period ended 30 September 2020
(All amount in GBP, unless otherwise stated)
Six months
period Six months Year ended
ended 30 period ended 31 March
Notes Sep 2020 30 Sep 2019 2020
Revenue 36,089,887 78,417,196 154,040,283
Cost of revenue (22,134,375) (47,594,626) (90,060,252)
Gross profit 13,955,512 30,822,570 63,980,031
------------- -------------- ----------------
Other income 9 10,134,265 539,467 668,037
Distribution cost (2,947,582) (4,900,291) (9,209,987)
General and administrative expenses (2,000,180) (3,634,170) (8,061,622)
Expected credit loss on trade receivables - (5,213,365) (17,046,480)
Depreciation and amortisation (2,983,195) (3,212,367) (6,293,034)
Operating profit 16,158,820 14,401,844 24,036,945
------------- -------------- ----------------
Finance costs 10 (3,681,194) (5,587,338) (11,495,136)
Finance income 11 284,328 851,944 1,962,692
------------- -------------- ----------------
Profit before tax 12,761,954 9,666,450 14,504,501
------------- -------------- ----------------
Tax expense 12 (1,865,120) (2,273,982) (4,321,124)
-------------
Profit for the period / year from
continued operations 10,896,834 7,392,468 10,183,377
------------- -------------- ----------------
Gain / (Loss) from discontinued
operations, including Non-Controlling
Interest 7(a)(b) 881,687 854,333 (2,146,275)
Profit for the period
/ year 11,778,521 8,246,801 8,037,102
Profit for the period / year attributable
to:
Owners of the Company 11,769,020 7,650,262 8,229,504
Non - controlling interests 9,501 596,538 (192,402)
11,778,521 8,246,801 8,037,102
============= ============== ================
Earnings per share from continued operations
Basic earnings per share (in pence) 2.72 1.90 2.60
Diluted earnings per share (in pence) 2.70 1.90 2.59
Earnings / (Loss) per share from discontinued operations
Basic earnings / (Loss) per share
(in pence) 0.27 0.07 (0.50)
Diluted earnings / (Loss) per share
(in pence) 0.27 0.07 (0.50)
Earnings per share
-Basic (in pence) 2.94 1.97 2.11
-Diluted (in pence) 2.92 1.97 2.09
Other comprehensive income / (loss)
Items that will be reclassified subsequently to profit
or loss
Exchange differences on translating
foreign operations (2,746,435) 6,714,854 (4,560,097)
Items that will be not reclassified subsequently
to profit or loss
Exchange differences on translating
foreign operations, relating to
non-controlling interests (2,644) 6,619 (192,401)
Total other comprehensive income
/ (loss) (2,749,079) 6,721,473 (4,752,498)
------------- -------------- -------------
Total comprehensive income 9,029,442 14,968,273 3,284,604
============= ============== =============
Total comprehensive income / (loss) attributable
to:
Owners of the Company 9,022,585 14,365,116 3,669,407
Non-controlling interest 6,857 603,157 (384,803)
9,029,442 14,968,273 3,284,604
============= ============== =============
The notes are an integral part of these consolidated financial
statements.
Consolidated statement of
changes
in equity
For the six
months period
ended 30 Sep
2020
(All amount in
GBP, unless
otherwise
stated)
Issued Foreign Total
capital currency attributable
(No. of Ordinary Share Other translation Retained to owners Non-controlling Total
shares) shares premium reserves reserve earnings of parent interests equity
------------ -------- ----------- --------- ------------ ----------- ------------ --------------- -----------
At 1 April 2019 387,910,200 57,024 129,125,915 6,650,305 (4,249,018) 21,916,422 153,500,648 882,759 154,383,407
------------ -------- ----------- --------- ------------ ----------- ------------ --------------- -----------
Employee Share
based
payment LTIP
(Note 17) - - - 835,822 - - 835,822 - 835,822
Dividends 12,823,311 1,885 2,325,567 - - (2,327,452) - - -
------------ -------- ----------- --------- ------------ ----------- ------------ --------------- -----------
Transaction with
owners 12,823,311 1,885 2,325,567 835,822 - (2,327,452) 835,822 - 835,822
------------ -------- ----------- --------- ------------ ----------- ------------ --------------- -----------
Profit for the
year - - - - - 8,229,504 8,229,504 (192,402) 8,037,101
Other
comprehensive
income - - - - (4,560,096) - (4,560,096) (192,402) (4,752,497)
------------ -------- ----------- --------- ------------ ----------- ------------ --------------- -----------
Total
comprehensive
income - - - - (4,560,096) 8,229,504 3,669,408 (384,804) 3,284,604
------------ -------- ----------- --------- ------------ ----------- ------------ --------------- -----------
At 31 March 2020 400,733,511 58,909. 131,451,482 7,486,127 (8,809,114) 27,818,474 158,005,878 497,955 158,503,833
------------ -------- ----------- --------- ------------ ----------- ------------ --------------- -----------
At 1 April 2020 400,733,511 58,909 131,451,482 7,486,127 (8,809,114) 27,818,474 158,005,878 497,955 158,503,833
------------ -------- ----------- --------- ------------ ----------- ------------ --------------- -----------
Employee Share
based
payment LTIP
(Note 17) - - - 267,624 - - 267,624 - 267,624
---------------- ------------ -------- ----------- --------- ------------ ----------- ------------ --------------- -----------
Transaction with
owners - - - 267,624 - - 267,624 - 267,624
---------------- ------------ -------- ----------- --------- ------------ ----------- ------------ --------------- -----------
Profit for the
period - - - - - 11,769,021 11,769,021 9,501 11,778,521
Impact of Solar
companies
Deconsolidation
(Note
7(b)) - - - - 55,626 - 55,626 376,718 432,344
Other
comprehensive
income - - - - (2,746,434) - (2,746,434) (2,644) (2,749,078)
------------ -------- ----------- --------- ------------ ----------- ------------ --------------- -----------
Total
comprehensive
income - - - - (2,690,809) 11,769,021 9,078,212 383,575 9,461,787
------------ -------- ----------- --------- ------------ ----------- ------------ --------------- -----------
At 31 September
2020 400,733,511 58,909 131,451,482 7,753,751 (11,499,922) 39,587,495 167,351,714 881,530 168,233,244
------------ -------- ----------- --------- ------------ ----------- ------------ --------------- -----------
The notes are an integral part of these consolidated financial
statements.
Consolidated statement of cash flows
For the six months period ended 30 September 2020
(All amount in GBP, unless otherwise stated)
Six months
period
ended Six months Year ended
30 Sep period ended 31 March
Notes 2020 30 Sep 2019 2019
-------------------------------- ----------- -------- ------------- -------------- ----------------
Cash flows from operating
activities
Profit before income tax including
discontinued operations 13,643,638 10,520,783 11,365,000
Adjustments for:
(Gain) / Loss from discontinued
operations, net 7 (881,687) (854,333) 3,139,501
Unrealised foreign exchange
loss 231,416 832,929 1,568,333
Financial costs 3,449,773 5,587,338 9,926,804
Financial Income (284,328) (841,312) (1,962,692)
Share based compensation costs 267,623 417,911 835,822
Depreciation and amortisation 2,983,195 3,212,367 6,293,034
Expected credit loss
on trade receivables - 5,213,365 17,046,480
Changes in working capital
Trade and other receivables 2,190,563 15,433,831 4,406,823
Inventories 3,414,812 1,598,836 (4,699,650)
Other assets 1,750,744 1,929,393 3,121,895
Trade and other payables (6,025,769) (16,383,490) (19,421,286)
Other liabilities (62,560) (319,257) (217,194)
------------- -------------- ----------------
Cash generated from continuing
operations 20,677,420 26,348,361 31,402,869
Taxes paid (730,037) (333,382) (767,865)
------------- -------------- ----------------
Cash provided by operating activities
of continuing operations 19,947,383 26,014,979 30,635,004
Cash provided by (used
for) operating activities
of discontinued operations - 1,175,440 (2,062,318)
------------- -------------- ----------------
Net cash provided by operating
activities 19,947,383 27,190,419 28,572,687
Cash flows from investing
activities
Purchase of property, plant and
equipment (including capital advances) (320,380) 51,644 (573,668)
Interest received 284,329 841,312 1,962,692
Movement in restricted cash 2,508,449 (2,264,585) 2,240,335
Sale/(purchase) of investments (754,439) (673,944) (725,418)
Cash from / (used in) investing
activities of continuing
operations 1,717,959 (2,045,573) 2,903,941
Cash from investing activities of
discontinued operations - - 426,425
------------- -------------- -------------
Net cash from / (used in)
investing activities 1,717,959 (2,045,573) 3,330,366
------------- -------------- -------------
Cash flows from financing activities
Proceeds from borrowings (net of
costs) 21,133,852 (3,355,303) -
Repayment of borrowings (33,339,333) (9,638,628) (21,620,516)
Finance costs paid (3,449,773) (5,587,338) (9,927,750)
------------- -------------- -------------
Cash used in financing activities
of continuing operations (15,655,254) (18,581,269) (31,548,266)
Cash from / (used in) financing
activities of discontinued operations - (1,502,163) 689,255
------------- -------------- -------------
Net cash used in financing activities (15,655,254) (20,083,432) (30,859,011)
------------- -------------- -------------
Net Increase / (decrease) in
cash and cash equivalents from
continuing operations 6,010,088 5,388,137 (96,387)
Net Increase / (decrease) in
cash and cash equivalents from
discontinued operations - (326,723) (946,638)
------------- -------------- -------------
Net increase in cash and cash
equivalents 6,010,088 5,061,414 1,044,042
Cash and cash equivalents at
the beginning of the year 3,438,830 2,118,960 2,118,960
Cash and cash equivalents -
solar business - 361,747 24,545
Exchange differences on cash
and cash equivalents (74,069) 212,718 19,330
Cash and cash equivalents of
the discontinued operations - (44,687) 231,953
------------- -------------- -------------
Cash and cash equivalents at
the end of the period/year 9,374,849 7,710,151 3,438,830
============= ============== =============
The notes are an integral part of these consolidated financial
statements.
Notes to the consolidated financial statements
(All amounts are in GBP, unless otherwise stated)
1. Nature of Operations
OPG Power Ventures Plc ('the Company' or 'OPGPV'), and its
subsidiaries (collectively referred to as 'the Group') are
primarily engaged in the development, owning, operation and
maintenance of private sector power projects in India. The
electricity generated from the Group's plants is sold principally
to public sector undertakings and heavy industrial companies in
India or in the short term market. The business objective of the
group is to focus on the power generation business within India and
thereby provide reliable, cost effective power to the industrial
consumers and other users under the 'open access' provisions
mandated by the Government of India.
2. Statement of compliance
The consolidated financial statements of the Group have been
prepared in accordance with International Financial Reporting
Standards (IFRS) and their interpretations as adopted by the
European Union (EU) and the provisions of the Isle of Man,
Companies Act 2006 applicable to companies reporting under
IFRS.
3. General information
OPG Power Ventures Plc, a limited liability corporation, is the
Group's ultimate parent Company and is incorporated and domiciled
in the Isle of Man. The address of the Company's registered Office,
which is also the principal place of business, is 55 Athol street,
Douglas, Isle of Man IM1 1LA. The Company's equity shares are
listed on the Alternative Investment Market (AIM) of the London
Stock Exchange.
The Consolidated Financial statements for the period ended 30
September 2020 were approved and authorised for issue by the Board
of Directors on 30 November 2020.
4. Recent accounting pronouncements
a) Standards, amendments and interpretations to existing
standards that are not yet effective and have not been adopted
early by the Group
At the date of authorisation of these financial statements, no
new standards, and no amendments to existing standards have been
published by the IASB that are not yet effective, and have not been
adopted early by the Group.
b) Changes in accounting Standards
The below mentioned amendments to accounting standards have
become applicable for annual periods beginning on or after 1
January 2020:
i. Amendments to IAS 1 and IAS 8, "Definition of Material,"
published in October 2018 have become applicable prospectively for
annual periods beginning on or after 1 January 2020.
Amendments to IFRS 3, "Definition of a business," published in
October 2018. for acquisitions that occur on or after first annual
reporting period beginning on or after 1 January 2020 have become
applicable for annual periods beginning on or after 1 January
2020.
Amendments to IFRS 9, IAS 39 and IFRS 7, "Interest rate
benchmark reform," published in September 2019 have become
applicable prospectively for annual periods beginning on or after 1
January 2020.
These amendments have no material impact on the consolidated
financial statements of Group.
5. Summary of significant accounting policies
a) Basis of preparation
The consolidated financial statements of the Group have been
prepared on a historical cost basis, except for financial assets
and liabilities at fair value through profit or loss and financial
assets measured at FVPL.
The consolidated financial statements are presented in
accordance with IAS 1 Presentation of Financial Statements and have
been presented in Great Britain Pounds ('LIR'), the functional and
presentation currency of the Company.
Effective from FY21, the results of operations of Solar
subsidiaries Aavanti Solar Energy Private Limited, Mayfair
Renewable Energy Private Limited, Aavanti Renewable Energy Private
Limited and Brics Renewable Energy Private Limited are not
consolidated in Group's consolidated financial statements due to
loss of control. The investments continue to be shown as Assets
held for sale as the process of sale could not be implemented
during FY20 due to pandemic Covid-19 and expectation of
comparatively better valuation for sale. However, the management
expects the interest in these solar companies to be sold within the
next 12 months and continues to locate a buyer.
Going concern
As at 30 September 2020 the Group had GBP 9.4m in cash and cash
equivalents and net current assets of GBP 31.9m. The directors and
management have prepared a cash flow forecast to December 2021, 12
months from the date this report has been approved.
The Group experiences sensitivity in its cash flow forecasts due
to the exposure to potential increase in USD denominated coal
prices and a decrease in the value of the Indian Rupee. The
Directors and management are confident that the Group will be
trading in line with its forecast and that any exposure to a
fluctuation in coal prices or the exchange rate INR/USD has been
taken into consideration and therefore prepared the financial
statements on a going concern basis.
COVID-19 virus, a global pandemic has affected the world economy
leading to significant decline and volatility in financial markets
and decline in economic activities. The Group has considered the
possible effects that may result from the pandemic on the carrying
amounts of receivables and other financial assets and carried out a
Reverse Stress Test (RST). In developing the assumptions relating
to the possible future uncertainties in the global economic
conditions because of this pandemic, the Group, as at the date of
approval of these financial statements has used internal and
external sources of information. The Group has performed
sensitivity analysis on the assumptions used for business
projections and based on current estimates expects the carrying
amount of these assets will be recovered and no material impact on
the financial results inter-alia including the carrying value of
various current and non-current assets are expected to arise for
the six months period ended 30 September 2020. The Group will
continue to closely monitor any variation due to the changes in
situation and these changes will be taken into consideration, if
necessary, as and when they crystalise. However, electricity being
an essential commodity the impact on industry has been
comparatively lower. The operating assets of the Group primarily
are located in India. The Government of India with Reserve Bank of
India (RBI) have announced various regulatory measures to help the
industry. Subsequent to year end, RBI
announced various regulatory measures (RBI COVID-19 Regulatory
package which, inter alia, provides for rescheduling of payments
towards Term Loans and Working Capital facilities for principal and
interest) to mitigate the burden of debt servicing brought by
disruptions on account of COVID-19 pandemic and to ensure the
continuity of viable businesses. The Group has opted for such
measures for deferment of payment of principal and interest on term
loans and also interest on working capital loans. Please refer to
events after year end detailed below that have substantially eased
the cash flow burden on account of the Group having repaid the
principal term loan obligation for FY 21 and FY 22 and major
recoveries of overdues towards power supply from our principle
customer TANGEDCO. Based on the RST analysis, we can conclude that
the Group is in strong position to go through the current situation
caused by Covid-19 pandemic and going concern is not an issue.
The Group raised approximately GBP 21.1 million (Rs.2 billion)
during June 2020 through non-convertible debentures (NCDs) issue
with a three years term and coupon rate of 9.85%. NCD's proceeds
was used to repay the FY21 and FY22 (i.e. to March 2022) principal
term loans obligations. This will substantially release the cash
flow burden for the next two financial years on account of loan
repayment obligations.
During the current period the Group collected all overdue amount
of receivables from its principal customer.
Subsequent to 30 September 2020, the Group has collected
contractual claims payments from its customers under the power
purchase agreements amounting to GBP9.6 million (Rs.0.9 billion).
These contractual claims were accumulated over several periods and
were recognised as Other income in these financial statements.
These three developments strengthened the Group's financial
position at this time of economic slowdown.
b) Basis of consolidation
The consolidated financial statements include the assets,
liabilities and results of the operation of the Company and all of
its subsidiaries as of 30 September 2020. All subsidiaries have a
reporting date of 31 March.
A subsidiary is defined as an entity controlled by the Company.
The parent controls a subsidiary if it is exposed, or has rights,
to variable returns from its involvement with the subsidiary and
has the ability to affect those returns through its power over the
subsidiary. Subsidiaries are fully consolidated from the date of
acquisition, being the date on which effective control is acquired
by the Group, and continue to be consolidated until the date that
such control ceases.
All transactions and balances between Group companies are
eliminated on consolidation, including unrealised gains and losses
on transactions between Group companies. Where unrealised losses on
intra-group asset sales are reversed on consolidation, the
underlying asset is also tested for impairment from a group
perspective. Amounts reported in the financial statements of
subsidiaries have been adjusted where necessary to ensure
consistency with the accounting policies adopted by the Group.
Non-controlling interest represents the portion of profit or
loss and net assets that is not held by the Group and is presented
separately in the consolidated statement of comprehensive income
and within equity in the consolidated statement of financial
position, separately from parent shareholders' equity. Acquisitions
of additional stake or dilution of stake from/ to non-controlling
interests/ other venturer in the Group where there is no loss of
control are accounted for as an equity transaction, whereby, the
difference between the consideration paid to or received from and
the book value of the share of the net assets is recognised in
'Other reserve' within the statement of changes in equity.
c) Investments in associates and joint ventures
Investments in associates and joint ventures are accounted for
using the equity method. The carrying amount of the investment in
associates and joint ventures is increased or decreased to
recognise the Group's share of the profit or loss and other
comprehensive income of the associate and joint venture, adjusted
where necessary to ensure consistency with the accounting policies
of the Group.
Unrealised gains and losses on transactions between the Group
and its associates and joint ventures are eliminated to the extent
of the Group's interest in those entities. Where unrealised losses
are eliminated, the underlying asset is also tested for
impairment.
d) List of subsidiaries, joint ventures, and associates
Details of the Group's subsidiaries and joint ventures, which
are consolidated into the Group's consolidated financial
statements, are as follows:
% Voting Right % Economic interest
(i) Subsidiaries Country September March September March
of incorporation 2020 2020 2020 2020
------------------------------- ------------------- ---------- ------- ------------ --------
Caromia Holdings limited
('CHL') Cyprus 100.00 100.00 100.00 100.00
Gita Power and Infrastructure
Private Limited, ('GPIPL') India 100.00 100.00 100.00 100.00
OPG Power Generation
Private Limited ('OPGPG') India 73.16 73.49 99.91 99.91
Samriddhi Solar Power
LLP(*) India 73.16 73.49 99.91 99.90
Samriddhi Surya Vidyut
Private Limited India 73.16 73.49 99.91 99.90
OPG Surya Vidyut LLP
(*) India 73.16 73.49 99.91 99.90
Powergen Resources
Pte Ltd Singapore 98.66 98.67 100.00 100.00
Aavanti Solar Energy
Private Limited(**) India 31.00 31.00 31.00 31.00
Mayfair Renewable Energy
Private Limited(**) India 31.00 31.00 31.00 31.00
Aavanti Renewable Energy
Private Limited(**) India 31.00 31.00 31.00 31.00
Brics Renewable Energy
Private Limited(**) India 31.00 31.00 31.00 31.00
(*) Converted into LLP.
(**) Effective from FY21, the results of operations of Solar
subsidiaries Aavanti Solar Energy Private Limited, Mayfair
Renewable Energy Private Limited, Aavanti Renewable Energy Private
Limited and Brics Renewable Energy Private Limited are not
consolidated in Group's consolidated financial statements due to
loss of control over these entities.
ii) Financial assets measured at FVPL (Assets Held for sale)-
Joint ventures (Note 7(a))
% Voting Right % Economic interest
Country of September March September March
Joint ventures incorporation 2020 2020 2020 2020
------------------------ ---------------- ---------- ------ ------------- -------
Padma Shipping Limited
("PSL") Hong Kong 50 50 50 50
------------------------ ---------------- ---------- ------ ------------- -------
e) Foreign currency translation
The functional currency of the Company is the Great Britain
Pound Sterling (GBP). The Cyprus entity is an extension of the
parent and pass through investment entity. Accordingly, the
functional currency of the subsidiary in Cyprus is the Great
Britain Pound Sterling. The functional currency of the Company's
subsidiaries operating in India, determined based on evaluation of
the individual and collective economic factors is Indian Rupees ('
' or 'INR'). The presentation currency of the Group is the Great
Britain Pound (GBP) as submitted to the AIM counter of the London
Stock Exchange where the shares of the Company are listed.
At the reporting date the assets and liabilities of the Group
are translated into the presentation currency at the rate of
exchange prevailing at the reporting date and the income and
expense for each statement of profit or loss are translated at the
average exchange rate (unless this average rate is not a reasonable
approximation of the cumulative effect of the rates prevailing on
the transaction dates, in which case income and expense are
translated at the rate on the date of the transactions). Exchange
differences are charged/ credited to other comprehensive income and
recognized in the currency translation reserve in equity.
Transactions in foreign currencies are translated at the foreign
exchange rate prevailing at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies at the
Statement of financial position date are translated into functional
currency at the foreign exchange rate ruling at that date.
Aggregate gains and losses resulting from foreign currencies are
included in finance income or costs within the profit or loss.
INR exchange rates used to translate the INR financial
information into the presentation currency of Great Britain Pound
(GBP) are the closing rate as at 30 September 2020: 94.74
(2020:93.07; 2019: 86.41) and the average rate for the period ended
30 September 2020: 94.63 (2020:89.97; 2019: 87.97).
f) Revenue recognition
In accordance with IFRS 15 - Revenue from contracts with
customers, the group recognises revenue to the extent that it
reflects the expected consideration for goods or services provided
to the customer under contract, over the performance obligations
they are being provided. For each separable performance obligation
identified, the Group determines whether it is satisfied at a
"point in time" or "over time" based upon an evaluation of the
receipt and consumption of benefits, control of assets and
enforceable payment rights associated with that obligation. If the
criteria required for "over time" recognition are not met, the
performance obligation is deemed to be satisfied at a "point in
time". Revenue principally arises as a result of the Group's
activities in electricity generation and distribution. Supply of
power and billing satisfies performance obligations. The supply of
power is invoiced in arrears on a monthly basis and generally the
payment terms within the Group are 30 days.
Sale of electricity
Revenue from the sale of electricity is recognised on the basis
of biling cycle under the contractual arrangement with the
customers and reflects the value of units of power supplied and the
applicable customer tariff after deductions or discounts. Revenue
is earned at a point in time of joint meter reading by both buyer
and seller for each billing month.
Interest and dividend
Revenue from interest is recognised as interest accrued (using
the effective interest rate method). Revenue from dividends is
recognised when the right to receive the payment is
established.
g) Operating expenses
Operating expenses are recognised in the statement of profit or
loss upon utilisation of the service or as incurred.
h) Taxes
Tax expense recognised in profit or loss comprises the sum of
deferred tax and current tax not recognised in other comprehensive
income or directly in equity.
Current income tax assets and/or liabilities comprise those
obligations to, or claims from, taxation authorities relating to
the current or prior reporting periods, that are unpaid at the
reporting date. Current tax is payable on taxable profit, which
differs from profit or loss in the financial statements.
Calculation of current tax is based on tax rates and tax laws
that have been enacted or substantively enacted by the end of the
reporting period.
Deferred income taxes are calculated using the liability method
on temporary differences between the carrying amounts of assets and
liabilities and their tax bases. However, deferred tax is not
provided on the initial recognition of goodwill, nor on the initial
recognition of an asset or liability unless the related transaction
is a business combination or affects tax or accounting profit.
Deferred tax on temporary differences associated with investments
in subsidiaries is not provided if reversal of these temporary
differences can be controlled by the Group and it is probable that
reversal will not occur in the foreseeable future.
Deferred tax assets and liabilities are calculated, without
discounting, at tax rates that are expected to apply to their
respective period of realisation, provided they are enacted or
substantively enacted by the end of the reporting period. Deferred
tax liabilities are always provided for in full.
Deferred tax assets are recognised to the extent that it is
probable that they will be able to be utilised against future
taxable income. Deferred tax assets and liabilities are offset only
when the Group has a right and the intention to set off current tax
assets and liabilities from the same taxation authority. Changes in
deferred tax assets or liabilities are recognised as a component of
tax income or expense in profit or loss, except where they relate
to items that are recognised in other comprehensive income or
directly in equity, in which case the related deferred tax is also
recognised in other comprehensive income or equity,
respectively.
i) Financial assets
IFRS 9 Financial Instruments contains regulations on measurement
categories for financial assets and financial liabilities. It also
contains regulations on impairments, which are based on expected
losses.
Financial assets are classified as financial assets measured at
amortized cost, financial assets measured at fair value through
other comprehensive income (FVOCI) and financial assets measured at
fair value through profit and loss (FVPL) based on the business
model and the characteristics of the cash flows. If a financial
asset is held for the purpose of collecting contractual cash flows
and the cash flows of the financial asset represent exclusively
interest and principal payments, then the financial asset is
measured at amortized cost. A financial asset is measured at fair
value through other comprehensive income (FVOCI) if it is used both
to collect contractual cash flows and for sales purposes and the
cash flows of the financial asset consist exclusively of interest
and principal payments. Unrealized gains and losses from financial
assets measured at fair value through other comprehensive income
(FVOCI), net of related deferred taxes, are reported as a component
of equity (other comprehensive income) until realized. Realized
gains and losses are determined by analysing each transaction
individually. Debt instruments that do not exclusively serve to
collect contractual cash flows or to both generate contractual cash
flows and sales revenue, or whose cash flows do not exclusively
consist of interest and principal payments are measured at fair
value through profit and loss (FVPL). For equity instruments that
are not held for trading purposes the group has uniformly exercised
the option of recognizing changes in fair value through profit or
loss (FVPL). Refer to note 30 "Summary of financial assets and
liabilities by category and their fair values".
Impairments of financial assets are both recognized for losses
already incurred and for expected future credit defaults. The
amount of the impairment loss calculated in the determination of
expected credit losses is recognized on the income statement.
Impairment provisions for current and non-current trade receivables
are recognised based on the simplified approach within IFRS 9 using
a provision matrix in the determination of the lifetime expected
credit losses. During this process the probability of the
non-payment of the trade receivables is assessed. This probability
is then multiplied by the amount of the expected loss arising from
default to determine the lifetime expected credit loss for the
trade receivables. On confirmation that the trade receivable will
not be collectable, the gross carrying value of the asset is
written off against the associated provision.
j) Financial liabilities
The Group's financial liabilities include borrowings and trade
and other payables. Financial liabilities are measured subsequently
at amortised cost using the effective interest method. All
interest-related charges and, if applicable, changes in an
instrument's fair value that are reported in profit or loss are
included within 'finance costs' or 'finance income'.
k) Fair value of financial instruments
The fair value of financial instruments that are actively traded
in organised financial markets is determined by reference to quoted
market prices at the close of business on the Statement of
financial position date. For financial instruments where there is
no active market, fair value is determined using valuation
techniques. Such techniques may include using recent arm's length
market transactions; reference to the current fair value of another
instrument that is substantially the same; discounted cash flow
analysis or other valuation models.
l) Property, plant and equipment
Property, plant and equipment are stated at historical cost,
less accumulated depreciation and any impairment in value.
Historical cost includes expenditure that is directly attributable
to property plant & equipment such as employee cost, borrowing
costs for long-term construction projects etc, if recognition
criteria are met. Likewise, when a major inspection is performed,
its costs are recognised in the carrying amount of the plant and
equipment as a replacement if the recognition criteria are
satisfied. All other repairs and maintenance costs are recognised
in the profit or loss as incurred.
Land is not depreciated. Depreciation on all other assets is
computed on straight-line basis over the useful life of the asset
based on management's estimate as follows:
Nature of asset Useful life (years)
--------------------------- --------------------
Buildings 40
Power stations 40
Other plant and equipment 3-10
Vehicles 5-11
--------------------------- --------------------
Assets in the course of construction are stated at cost and not
depreciated until commissioned.
An item of property, plant and equipment is derecognised upon
disposal or when no future economic benefits are expected from its
use or disposal. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the
profit or loss in the year the asset is derecognised.
The assets' residual values, useful lives and methods of
depreciation of the assets are reviewed at each financial year end,
and adjusted prospectively if appropriate.
m) Intangible assets
Acquired software
Acquired computer software licences are capitalised on the basis
of the costs incurred to acquire and install the specific
software.
Subsequent measurement
All intangible assets, including software are accounted for
using the cost model whereby capitalised costs are amortised on a
straight-line basis over their estimated useful lives, as these
assets are considered finite. Residual values and useful lives are
reviewed at each reporting date. The useful life of software is
estimated as 4 years.
n) Leases
All leases are accounted for by recognising a right-of-use asset
and a lease liability except for:
-- Leases of low value assets; and
-- Leases with a duration of 12 months or less.
IFRS 16 was adopted effective from 1 April 2019 without
restatement of comparative figures.
Lease liabilities are measured at the present value of the
contractual payments due to the lessor over the lease term, with
the discount rate determined by reference to the rate inherent in
the lease unless (as is typically the case) this is not readily
determinable, in which case the group's incremental borrowing rate
on commencement of the lease is used. Variable lease payments are
only included in the measurement of the lease liability if they
depend on an index or rate. In such cases, the initial measurement
of the lease liability assumes the variable element will remain
unchanged throughout the lease term. Other variable lease payments
are expensed in the period to which they relate. On initial
recognition, the carrying value of the lease liability also
includes:
-- amounts expected to be payable under any residual value
guarantee;
-- the exercise price of any purchase option granted in favour
of the group if it is reasonable certain to assess that option;
and
-- any penalties payable for terminating the lease, if the term
of the lease has been estimated in the basis of termination option
being exercised.
Right of use assets are initially measured at the amount of the
lease liability, reduced for any lease incentives received, and
increased for:
-- lease payments made at or before commencement of the
lease;
-- initial direct costs incurred; and
-- the amount of any provision recognised where the group is
contractually required to dismantle, remove or restore the leased
asset (typically leasehold dilapidations)
Subsequent to initial measurement lease liabilities increase as
a result of interest charged at a constant rate on the balance
outstanding and are reduced for lease payments made. Right-of-use
assets are amortised on a straight-line basis over the remaining
term of the lease or over the remaining economic life of the asset
if, rarely, this is judged to be shorter than the lease term. When
the Group revises its estimate of the term of any lease (because,
for example, it re-assesses the probability of a lessee extension
or termination option being exercised), it adjusts the carrying
amount of the lease liability to reflect the payments to make over
the revised term, which are discounted using a revised discount
rate. The carrying value of lease liabilities is similarly revised
when the variable element of future lease payments dependent on a
rate or index is revised, except the discount rate remains
unchanged. In both cases an equivalent adjustment is made to the
carrying value of the right-of-use asset, with the revised carrying
amount being amortised over the remaining (revised) lease term. If
the carrying amount of the right-of-use asset is adjusted to zero,
any further reduction is recognised in profit or loss.
o) Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, that necessarily
take a substantial period of time to get ready for their intended
use or sale, are added to the cost of those assets. Interest income
earned on the temporary investment of specific borrowing pending
its expenditure on qualifying assets is deducted from the costs of
these assets.
Gains and losses on extinguishment of liability, including those
arising from substantial modification from terms of loans are not
treated as borrowing costs and are charged to profit or loss.
All other borrowing costs including transaction costs are
recognized in the statement of profit or loss in the period in
which they are incurred, the amount being determined using the
effective interest rate method.
p) Impairment of non-financial assets
The Group assesses at each reporting date whether there is an
indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is required,
the Group estimates the asset's recoverable amount. An asset's
recoverable amount is the higher of an asset's or cash-generating
unit's (CGU) fair value less costs to sell and its value in use and
is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from
other assets or Groups of assets. Where the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money
and the risks specific to the asset. In determining fair value less
costs to sell, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples, quoted share
prices for publicly traded subsidiaries or other available fair
value indicators.
For assets excluding goodwill, an assessment is made at each
reporting date as to whether there is any indication that
previously recognised impairment losses may no longer exist or may
have decreased. If such indication exists, the Group estimates the
asset's or cash-generating unit's recoverable amount. A previously
recognised impairment loss is reversed only if there has been a
change in the assumptions used to determine the asset's recoverable
amount since the last impairment loss was recognised. The reversal
is limited so that the carrying amount of the asset does not exceed
its recoverable amount, nor exceed the carrying amount that would
have been determined, net of depreciation, had no impairment loss
been recognised for the asset in prior years. Such reversal is
recognised in the profit or loss.
q) Non-current assets held for sale and discontinued
operations
Non-current assets and any corresponding liabilities held for
sale and any directly attributable liabilities are recognized
separately from other assets and liabilities in the balance sheet
in the line items "Assets held for sale" and "Liabilities
associated with assets held for sale" if they can be disposed of in
their current condition and if there is sufficient probability of
their disposal actually taking place. Discontinued operations are
components of an entity that are either held for sale or have
already been sold and can be clearly distinguished from other
corporate operations, both operationally and for financial
reporting purposes. Additionally, the component classified as a
discontinued operation must represent a major business line or a
specific geographic business segment of the Group. Non-current
assets that are held for sale either individually or collectively
as part of a disposal group, or that belong to a discontinued
operation, are no longer depreciated. They are instead accounted
for at the lower of the carrying amount and the fair value less any
remaining costs to sell. If this value is less than the carrying
amount, an impairment loss is recognized. The income and losses
resulting from the measurement of components held for sale as well
as the gains and losses arising from the disposal of discontinued
operations, are reported separately on the face of the income
statement under income/loss from discontinued operations, net, as
is the income from the ordinary operating activities of these
divisions. Prior-year income statement figures are adjusted
accordingly. However, there is no reclassification of prior-year
balance sheet line items attributable to discontinued
operations.
r) Cash and cash equivalents
Cash and cash equivalents in the Statement of financial position
includes cash in hand and at bank and short-term deposits with
original maturity period of 3 months or less.
For the purpose of the consolidated cash flow statement, cash
and cash equivalents consist of cash in hand and at bank and
short-term deposits. Restricted cash represents deposits which are
subject to a fixed charge and held as security for specific
borrowings and are not included in cash and cash equivalents.
s) Inventories
Inventories are stated at the lower of cost and net realisable
value. Costs incurred in bringing each product to its present
location and condition is accounted based on weighted average
price. Net realisable value is the estimated selling price in the
ordinary course of business, less estimated selling expenses.
t) Earnings per share
The earnings considered in ascertaining the Group's earnings per
share (EPS) comprise the net profit for the year attributable to
ordinary equity holders of the parent. The number of shares used
for computing the basic EPS is the weighted average number of
shares outstanding during the year. For the purpose of calculating
diluted earnings per share the net profit or loss for the period
attributable to equity share holders and the weighted average
number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity share.
u) Other provisions and contingent liabilities
Provisions are recognised when present obligations as a result
of a past event will probably lead to an outflow of economic
resources from the Group and amounts can be estimated reliably.
Timing or amount of the outflow may still be uncertain. A present
obligation arises from the presence of a legal or constructive
obligation that has resulted from past events. Restructuring
provisions are recognised only if a detailed formal plan for the
restructuring has been developed and implemented, or management has
at least announced the plan's main features to those affected by
it. Provisions are not recognised for future operating losses.
Provisions are measured at the estimated expenditure required to
settle the present obligation, based on the most reliable evidence
available at the reporting date, including the risks and
uncertainties associated with the present obligation. Where there
are a number of similar obligations, the likelihood that an outflow
will be required in settlement is determined by considering the
class of obligations as a whole. Provisions are discounted to their
present values, where the time value of money is material.
Any reimbursement that the Group can be virtually certain to
collect from a third party with respect to the obligation is
recognised as a separate asset. However, this asset may not exceed
the amount of the related provision. All provisions are reviewed at
each reporting date and adjusted to reflect the current best
estimate.
In those cases where the possible outflow of economic resources
as a result of present obligations is considered improbable or
remote, no liability is recognised, unless it was assumed in the
course of a business combination. In a business combination,
contingent liabilities are recognised on the acquisition date when
there is a present obligation that arises from past events and the
fair value can be measured reliably, even if the outflow of
economic resources is not probable. They are subsequently measured
at the higher amount of a comparable provision as described above
and the amount recognised on the acquisition date, less any
amortisation.
v) Share based payments
The Group operates equity-settled share-based remuneration plans
for its employees. None of the Group's plans feature any options
for a cash settlement.
All goods and services received in exchange for the grant of any
share-based payment are measured at their fair values. Where
employees are rewarded using share-based payments, the fair values
of employees' services is determined indirectly by reference to the
fair value of the equity instruments granted. This fair value is
appraised at the grant date and excludes the impact of non-market
vesting conditions (for example profitability and sales growth
targets and performance conditions).
All share-based remuneration is ultimately recognised as an
expense in profit or loss with a corresponding credit to 'Other
Reserves'.
If vesting periods or other vesting conditions apply, the
expense is allocated over the vesting period, based on the best
available estimate of the number of share options expected to vest.
Non-market vesting conditions are included in assumptions about the
number of options that are expected to become exercisable.
Estimates are subsequently revised if there is any indication that
the number of share options expected to vest differs from previous
estimates. Any cumulative adjustment prior to vesting is recognised
in the current period. No adjustment is made to any expense
recognised in prior periods if share options ultimately exercised
are different to that estimated on vesting.
Upon exercise of share options, the proceeds received net of any
directly attributable transaction costs up to the nominal value of
the shares issued are allocated to share capital with any excess
being recorded as share premium.
w) Employee benefits
Gratuity
In accordance with applicable Indian laws, the Group provides
for gratuity, a defined benefit retirement plan ("the Gratuity
Plan") covering eligible employees. The Gratuity Plan provides a
lump-sum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount based on
the respective employee's salary and the tenure of employment.
Liabilities with regard to the gratuity plan are determined by
actuarial valuation, performed by an independent actuary, at each
Statement of financial position date using the projected unit
credit method.
The Group recognises the net obligation of a defined benefit
plan in its statement of financial position as an asset or
liability, respectively in accordance with IAS 19, Employee
benefits. The discount rate is based on the Government securities
yield. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are charged or
credited to profit or loss in the statement of comprehensive income
in the period in which they arise.
x) Business combinations
Business combinations arising from transfers of interests in
entities that are under the control of the shareholder that
controls the Group are accounted for as if the acquisition had
occurred at the beginning of the earliest comparative period
presented or, if later, at the date that common control was
established using pooling of interest method. The assets and
liabilities acquired are recognised at the carrying amounts
recognised previously in the Group controlling shareholder's
consolidated financial statements. The components of equity of the
acquired entities are added to the same components within Group
equity. Any excess consideration paid is directly recognised in
equity.
y) Segment reporting
The Group is primarily involved in business of power generation.
Considering the nature of Group's business, as well as based on
reviews by the chief operating decision maker to make decisions
about resource allocation and performance measurement, there are
only two reportable segments in accordance with the requirements of
IFRS 8 being Thermal and Solar.
6. Significant accounting judgements, estimates and
assumptions
The preparation of financial statements in conformity with IFRS
requires management to make certain critical accounting estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period.
The principal accounting policies adopted by the Group in the
consolidated financial statements are as set out above. The
application of a number of these policies requires the Group to use
a variety of estimation techniques and apply judgment to best
reflect the substance of underlying transactions.
The Group has determined that a number of its accounting
policies can be considered significant, in terms of the management
judgment that has been required to determine the various
assumptions underpinning their application in the consolidated
financial statements presented which, under different conditions,
could lead to material differences in these statements. The actual
results may differ from the judgments, estimates and assumptions
made by the management and will seldom equal the estimated
results.
a) Judgements
The following are significant management judgments in applying
the accounting policies of the Group that have the most significant
effect on the financial statements.
Assessing control of subsidiaries, associates, joint
ventures
Effective from FY21, the results of operations of Aavanti Solar
Energy Private Limited, Mayfair Renewable Energy Private Limited,
Aavanti Renewable Energy Private Limited and Brics Renewable Energy
Private Limited are not consolidated in Group's consolidated
financial statements due to loss of control. The investments
continue to be shown as Assets held for sale as the process of sale
could not be implemented during FY20 due to pandemic Covid-19 and
expectation of comparatively better valuation for sale. However,
the management expects the interest in these solar companies to be
sold within the next 12 months and continues to locate a buyer.
Non-current assets held for sale and discontinued operations
The Group exercises judgement in whether assets are held for
sale. After evaluation of all options, the Company decided that the
most efficient way to maximise shareholders' value from solar
operations is to dispose of the solar companies and it initiated
the process of disposition of the solar companies. Under IFRS 5,
such a transaction meets the 'Asset held for sale' when the
transaction is considered sufficiently probable and other relevant
criteria are met. Management consider that all the conditions under
IFRS 5 for classification of the solar business as held for sale
have been met as at 30 September 2020 and expects the interest in
the solar companies to be sold within the next 12 months.
The investment in the joint venture Padma Shipping Limited and
associated advance has been presented as asset held for sale
following the process of sale of the second vessel as mentioned in
note 7(a).
Recoverability of deferred tax assets
The recognition of deferred tax assets requires assessment of
future taxable profit (see note 5(h)).
b) Estimates and uncertainties
The key assumptions concerning the future and other key sources
of estimation uncertainty at the Statement of financial position
date, that have a significant risk of causing material adjustments
to the carrying amounts of assets and liabilities within the next
financial year are discussed below:
i) Estimation of fair value of financial assets and financial
liabilities: While preparing the financial statements the Group
makes estimates and assumptions that affect the reported amount of
financial assets and financial liabilities.
Trade receivables
The Group ascertains the expected credit losses (ECL) for all
receivables and adequate impairment provision are made. At the end
of each reporting period a review of the allowance for impairment
of trade receivables is performed. Trade receivables do not contain
a significant financing element, and therefore expected credit
losses are measured using the simplified approach permitted by IFRS
9, which requires lifetime expected credit losses to be recognised
on initial recognition. A provision matrix is utilised to estimate
the lifetime expected credit losses based on the age, status and
risk of each class of receivable, which is periodically updated to
include changes to both forward-looking and historical inputs.
Assets held for sale - Financial assets measured at FVPL
Valuation of Investment in joint venture Padma Shipping is based
on estimates and subject to uncertainties (Note 7(a)).
Financial assets measured at FVPL
Management applies valuation techniques to determine the fair
value of financial assets measured at FVPL where active market
quotes are not available. This requires management to develop
estimates and assumptions based on market inputs, using observable
data that market participants would use in pricing the asset. Where
such data is not observable, management uses its best estimate.
Estimated fair values of the asset may vary from the actual prices
that would be achieved in an arm's length transaction at the
reporting date.
Other financial liabilities
Borrowings held by the Group are measured at amortised cost (see
note 5(j)).
ii) Impairment tests: In assessing impairment, management
estimates the recoverable amount of each asset or cash-generating
units based on expected future cash flows and use an interest rate
for discounting them. Estimation uncertainty relates to assumptions
about future operating results including fuel prices, foreign
currency exchange rates etc. and the determination of a suitable
discount rate;
iii) Useful life of depreciable assets: Management reviews its
estimate of the useful lives of depreciable assets at each
reporting date, based on the expected utility of the assets.
7. Non-current assets held for sale and discontinued
operation
Non-current assets held for sale and discontinued operations
consists of:
Particulars Assets Held for Sale Liabilities classified Gain / (Loss) from
as held for sale discontinued operations
------------------------------------- ------------------------------------
Six Six
months months
Period Period Year
ended ended ended
30-Sep-20 30-Sep-19 31-Mar-20 30-Sep-20 30-Sep-19 31-Mar-20 30-Sep-2020 30-Sep-2019 31-Mar-2020
---- ---- --------- ----------- ----------- ---------- ----------- ----------- ------------ ------------ -------------
Joint
venture
Note
i 7(a) - 918,432 - - - - - - (918,432)
--------------- ---------- ----------- ----------- ------------ ------------ -------------
Solar
companies
Note
ii 7(b) 14,720,769 51,072,150 46,356,680 - 35,830,965 32,866,783 881,687 854,333 (293,942)
--------------- ----------- ---------- ----------- ----------- ------------ ------------ -------------
Impairment
of pledged
ii deposits - - - - - - - - (933,901)
--------------- ----------- ----------- ---------- ----------- ----------- ------------ ------------ -------------
Totall 14,720,769 51,990,582 46,356,680 - 35,830,965 32,866,783 881,687 854,333 (2,146,275)
--------------- ----------- ----------- ---------- ----------- ----------- ------------ ------------ -------------
a) Investment in joint venture Padma Shipping Limited -
classified as held for sale
In 2014 the Company entered into a Joint Venture agreement with
Noble Chartering Ltd ("Noble"), to secure competitive long term
rates for international freight for its imported coal requirements.
Under the Arrangement, the company and Noble agreed to jointly
purchase and operate two 64,000 MT cargo vessels through a Joint
venture company Padma Shipping Ltd, Hong Kong ('Padma').
OPG has invested approximately GBP3,484,178 in equity and
GBP1,727,418 to date as advance and accordingly the joint venture
has been reported using equity method as per the requirements of
IFRS 11. The Group has upto FY20 already made impairment provision
of entire investment of GBP5,211,596 (GBP 918,432 in FY20 and
GBP4,293,164 in earlier years) in joint venture on account of the
impending dissolution of the JV.
b) Assets held for sale and discontinued operations of solar
subsidiaries
During FY19, the results of the operations of solar companies
Aavanti Solar Energy Private Limited, Mayfair Renewable Energy
Private Limited, Aavanti Renewable Energy Private Limited and Brics
Renewable Energy Private Limited were classified as Assets held for
sale. After evaluation of all the options, the Company decided that
the most efficient way to maximise shareholders' value from the
solar operations is to dispose of the solar companies and the
process of disposition of the solar companies was initiated.
Effective from FY21, the results of operations of Solar
companies Aavanti Solar Energy Private Limited, Mayfair Renewable
Energy Private Limited, Aavanti Renewable Energy Private Limited
and Brics Renewable Energy Private Limited are not consolidated in
Group's consolidated financial statements due to loss of control.
The investments continue to be shown as Assets held for sale as the
process of sale could not be implemented during FY20 due to
pandemic Covid-19 and expectation of comparatively better valuation
for sale. However, the management expects the interest in these
solar companies to be sold within the next 12 months and continues
to locate a buyer.
Non-current Assets held-for-sale and discontinued operations
(i) Assets of disposal group classified as held-for-sale
As at As at As at
30 September 30 September 31 March
2020 2019 2020
Property, plant and equipment - 48,721,535 42,098,498
Trade and other receivables - 699,565 3,489,633
Other short-term assets - 363,362 256,209
Restricted cash - 1,237,125 487,795
Cash and cash equivalents - 50,563 24,545
Investment in solar companies
classified as held for sale 11,384,672 - -
Loans and advances to solar companies
classified as held for sale 3,336,097 - -
-------------- -------------- -----------
Total 14,720,769 51,072,150 46,356,680
--------------------------------------- -------------- -------------- -----------
(ii) Liabilities of disposal group classified as
held-for-sale
As at As at As at
30 September 30 September 31 March
2020 2019 2020
Non Current liabilities
Borrowings - 18,832,782 28,262,288
Trade and other payables - 9,745,988 -
Deferred tax liability - 1,767,680 1,014,031
Current liabilities -
Trade and other payables - 1,351,255 901,474
Other liabilities - 4,133,261 2,688,990
-
--------------- -------------- -----------
Total - 35,830,965 38,866,783
-------------------------- --------------- -------------- -----------
(iii) Analysis of the results of discontinued operations is as
follows:
Period
ended Sep Period ended Year ended
20 Sep 19 Mar 20
Revenue - 2,490,019 5,884,401
Operating profit before impairments - 2,334,873 2,160,974
Finance income - - 92,096
Finance cost - (1,468,304) (3,540,239)
Current Tax - (12,236) -
Deferred tax - - 993,226
Profit on deconsolidation of
solar(1) 881,687 - -
----------- ------------- ------------
Profit / (Loss) from solar companies
discontinued operations 881,687 854,333 (293,942)
----------- ------------- ------------
(1) Profit on deconsolidation
of solar companies
FV of equity retained 2,472 - -
Investment in Debentures retained 11,346,903 - -
Loans and advance retained 3,454,553 - -
----------- ------------- ------------
Total on the date of loss of 14,803,928 - -
control (A)
----------- ------------- ------------
Total assets 46,356,680 - -
Total liabilities 32,866,783 - -
----------- ------------- ------------
Net Assets at date of loss of 13,489,897 - -
control (B)
----------- ------------- ------------
Translation Reserve 55,626 - -
Non-controlling Interest 376,718 - -
----------- ------------- ------------
Non-controlling interest on date 432,344 - -
of loss of control(C)
----------- ------------- ------------
Net Gain on deconsolidation (A-B-C) 881,687 - -
----------- ------------- ------------
8. Segment reporting
The Group has adopted the "management approach" in identifying
the operating segments as outlined in IFRS 8 - Operating segments.
Segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker. The Board
of Directors being the chief operating decision maker evaluate the
Group's performance and allocates resources based on an analysis of
various performance indicators at operating segment level.
Accordingly, there are two operating segments, thermal power and
solar power following the reclassification of the interest in the
solar companies as subsidiaries as detailed in note 7(b). The solar
power business was classified as held for sale subsequently. There
are no geographical segments as all revenues arise from India. All
the non-current assets are located in India.
Revenue on account of sale of power to one customer exceeding
10% of total sales revenue amounts to GBP8,208,405 (2019:
GBP24,117,088).
Segmental information disclosure
Continuing operations Discontinued operations
Thermal Solar
Segment Revenue Sep-20 Sep-19 FY2020 Sep-20(1) Sep-19 FY2020
Sales 36,089,887 78,417,196 154,040,283 - 2,490,019 5,884,401
------------ ------------ ------------- ----------- ------------ ------------
Total 36,089,887 78,417,196 154,040,283 - 2,490,019 5,884,401
------------ ------------ ------------- ----------- ------------ ------------
Depreciation,
impairment (2,983,195) (3,212,367) (6,293,034) - - (3,516,527)
Profit from operation 16,158,820 14,401,844 24,036,945 - 2,334,873 2,160,974
Finance Income 284,328 851,944 1,962,692 - - 92,096
Finance Cost (3,681,194) (5,587,338) (11,495,136) - (1,468,304) (3,540,239)
Tax expenses (1,865,120) (2,273,982) (4,321,124) - (12,236) 993,226
Profit / (loss)
for the period/year 10,896,834 7,392,468 10,183,377 854,333 (293,942)
------------ ------------ ------------- ----------- ------------ ------------
(1) Solar operations have been
deconsolidated effective FY21.
Assets 241,320,200 288,512,023 249,981,014 14,720,769 51,072,149 46,356,680
Liabilities 87,807,725 134,874,089 104,967,078 - 35,830,965 32,866,783
9. Other income and expenses
30 Sep 30 Sep 31 March
Other income 2020 2019 2020
------------------------------------------------ ----------- -------- ---------
Contractual claims payments 9,628,703 - -
Sale of coal 493,498 312,908 462,718
Sale of fly ash 7,697 1,828 26,611
Power trading commission and other services 4,367 - 161,053
Sale of Solar power plant system to associates - 20,631 -
(net of cost)
Others - 204,100 17,655
Total 10,134,265 539,467 668,037
------------------------------------------------ ----------- -------- ---------
10. Finance costs
30 Sep 30 Sep 31 March
Finance costs are comprised of: 2020 2019 2020
--------------------------------- ---------- ---------- -----------
Interest expenses on borrowings 3,198,947 4,778,805 9,289,625
Net foreign exchange loss 162,550 266,286 1,147,491
Other finance costs 319,697 542,247 1,058,020
Total 3,681,194 5,587,338 11,495,136
--------------------------------- ---------- ---------- -----------
Other finance costs include charges and cost related to LC's for
import of coal and other charges levied by bank on transactions
11. Finance income
30 Sep 30 Sep 31 March
2020 2019 2020
---------------------------------------------- -------- -------- ----------
Interest income on bank deposits 284,328 851,944 1,943,132
Profit on disposal of financial instruments* - - 19,560
Total 284,328 851,944 1,962,692
---------------------------------------------- -------- -------- ----------
* Financial instruments represent mutual funds held during the
year.
12. Tax expense
30 Sep 30 Sep 31 March
2020 2019 2020
------------------------------------------------ ---------- ---------- ----------
Current tax 155 267,559 788,430
Deferred tax 1,864,965 2,006,423 4,525,920
Total tax expenses on income from continued
operations 1,865,120 2,273,982 5,314,350
Add: tax on income from discontinuing
operations - - (993,226)
Tax reported in the statement of comprehensive
income 1,865,120 2,273,982 4,321,124
------------------------------------------------ ---------- ---------- ----------
The Company is subject to Isle of Man corporate tax at the
standard rate of zero percent. As such, the Company's tax liability
is zero. Additionally, Isle of Man does not levy tax on capital
gains. However, considering that the group's operations are
primarily based in India, the effective tax rate of the Group has
been computed based on the current tax rates prevailing in India.
Further, a substantial portion of the profits of the Group's India
operations are exempt from Indian income taxes being profits
attributable to generation of power in India. Under the tax holiday
the taxpayer can utilize an exemption from income taxes for a
period of any ten consecutive years out of a total of fifteen
consecutive years from the date of commencement of the operations.
However, the entities in India are still liable for Minimum
Alternate Tax (MAT) which is calculated on the book profits of the
respective entities currently at a rate of 17.47% (30 September
2019: 21.55%).
13. Intangible assets
30 Sep 31 Mar
Cost As at 2020 30 Sep 2019 2020
--------- ------------ ---------
Opening 827,065 852,624 852,624
Additions - - -
Deletions - - -
Deletions Exchange adjustments (14,610) 38,187 (25,559)
--------- ------------ ---------
Total 812,455 890,811 827,065
--------- ------------ ---------
Accumulated depreciation and impairment
--------- ------------
Opening 818,020 829,021 829,021
Charge for the year 3,173 7,327 14,327
Exchange adjustments (14,454) 37,262 (25,329)
--------- ------------ ---------
Total 806,739 873,610 818,020
--------- ------------ ---------
Net book value 5,716 17,201 9,045
========= ============ =========
14. Property, plant and equipment
Other Asset
Land Power plant Solar under
& Buildings stations & equipment Vehicles assets construction Total
------------- ------------ ------------- ---------- -------- -------------- ------------
Cost
At 1 April 2019 5,007,901 222,961,054 1,773,269 2,417,413 - 4,285,864 236,445,501
Additions - 294,954 165,831 10,958 - 82,815 554,559
Transfers on
capitalisation 3,903,256 56,168 - - - (3,959,424) -
Exchange adjustments (145,667) (6,689,809) (52,848) (72,290) - (128,479) (7,089,093)
------------- ------------ ------------- ---------- -------- -------------- ------------
At 31 March 2020 8,765,490 216,622,367 1,886,252 2,356,081 - 280,776 229,910,967
------------- ------------ ------------- ---------- -------- -------------- ------------
At 1 April 2020 8,765,490 216,622,367 1,886,252 2,356,081 - 280,776 229,910,967
Additions 95,244 66,513 44,589 - 113,668 320,013
Transfers on
capitalisation
Exchange adjustments (152,212) (3,830,070) (33,125) (41,514) - (4,960) (4,061,881)
At 30 September
2020 8,708,522 212,858,810 1,897,716 2,314,567 - 389,484 226,169,099
------------- ------------ ------------- ---------- -------- -------------- ------------
Accumulated depreciation and
Impairment
At 1 April 2019 45,030 30,171,648 634,011 1,491,921 - - 32,342,610
Charge for the
year 12,981 5,603,791 272,110 389,825 - - 6,278,707
Exchange adjustments (2,410) (1,091,777) (28,050) (57,509) - - (1,179,746)
------------- ------------ ------------- ---------- -------- -------------- ------------
At 31 March 2020 55,601 34,683,662 878,072 1,824,237 - - 37,441,571
------------- ------------ ------------- ---------- -------- -------------- ------------
At 1 April 2020 55,601 34,683,662 878,072 1,824,237 - - 37,441,571
Charge for the
period 6,181 2,668,512 134,161 171,168 - - 2,980,022
Exchange adjustments (1,359) (616,105) (15,653) (32,303) - - (665,420)
At 30 September
2020 60,422 36,736,068 996,580 1,963,101 - - 39,756,173
------------- ------------ ------------- ---------- -------- -------------- ------------
Net book value
At 30 September
2020 8,648,100 176,122,741 901,135 351,466 - 389,484 186,412,926
At 31 March 2020 8,709,889 181,938,705 1,008,180 531,845 - 280,776 192,469,395
At 30 September
2019 5,183,282 198,527,004 1,157,122 764,355 - 4,485,406 210,117,169
------------- ------------ ------------- ---------- -------- -------------- ------------
15. Trade and other receivables
30 Sep 30 Sep 31 March
2020 2019 2020
--------------------------------------- ----------- ----------- -----------
Current
Trade receivables 14,621,070 30,520,861 26,901,986
Other receivables (contractual claims 9,617,656 - -
payments income)
24,238,726 30,520,861 26,901,986
--------------------------------------- ----------- ----------- -----------
Expected Credit Loss ("ECL") recognised in profit or (loss)
during the period ended 30 September 2020 of GBP Nil (September
2019 - GBP5.2m, FY2020 GBP17m). ECL are measured using the
simplified approach permitted by IFRS 9, which requires lifetime
ECL to be recognised. The Group determined that for some trade
receivables an impairment provision have to be recognised as they
deemed to be not recoverable and due to dispute regarding
contractual terms.
16. Cash and cash equivalents
Cash and short term deposits comprise of the following:
30 Sep 2020 30 Sep 2019 31 March
2020
------------------------------------- ------------ ------------ ----------
Cash at banks and on hand 2,603,300 2,139,037 3,438,830
Short-term deposits and investments 6,771,550 5,571,114 -
9,374,849 7,710,151 3,438,830
------------------------------------- ------------ ------------ ----------
Short-term deposits are placed for varying periods, depending on
the immediate cash requirements of the Group. They are recoverable
on demand.
17. Share based payments
Long Term Incentive Plan
In April 2019, the Board of Directors has approved the
introduction of Long Term Incentive Plan ("LTIP"). The key terms of
the LTIP are:
The number of performance-related awards is 14 million ordinary
shares (the "LTIP Shares") (representing approximately 3.6 per cent
of the Company's issued share capital). In addition to three
executive directors, additional members of the senior management
team will be included within the LTIP. The grant date is 24 April
2019.
The LTIP Shares were awarded to certain members of the senior
management team as Nominal Cost Shares and will vest in three
tranches subject to continued service with Group until vesting and
meeting the following share price performance targets, plant load
factor ("PLF") and term loan repayments of the Chennai thermal
plant. The vesting conditions are as follows:
- 20% of the LTIP Shares shall vest upon meeting the target
share price of 25.16p before the first anniversary for the first
tranche, i.e. 24 April 2020, achievement of PLF during the period
April 2019 to March 2020 of at least 70% at the Chennai thermal
plant and repayment of all scheduled term loans;
- 40% of the LTIP Shares shall vest upon meeting the target
share price of 30.07p before the second anniversary for the second
tranche, i.e. 24 April 2021, achievement of PLF during the period
April 2020 to March 2021 of at least 70% at the Chennai thermal
plant and repayment of all scheduled term loans;
- 40% of the LTIP Shares shall vest upon meeting the target
share price of 35.00p before the third anniversary for the third
tranche, i.e. 24 April 2022, achievement of PLF of at least 70% at
the Chennai thermal plant during the period April 2021 to March
2022 and repayment of all scheduled term loans.
The nominal cost of performance share, i.e. upon the exercise of
awards, individuals will be required to pay up 0.0147p per share to
exercise their awards.
The share price performance metric will be deemed achieved if
the average share price over a fifteen day period exceeds the
applicable target price. In the event that the share price or other
performance targets do not meet the applicable target, the number
of vesting shares would be reduced pro-rata, for that particular
year. However, no LTIP Shares will vest if actual performance is
less than 80 per cent of any of the performance targets in any
particular year. The terms of the LTIP provide that the Company may
elect to pay a cash award of an equivalent value of the vesting
LTIP Shares. None of the LTIP Shares, once vested, can be sold
until the third anniversary of the award, unless required to meet
personal taxation obligations in relation to the LTIP award.
For LTIP Shares awards, GBP267,624 (Sep19: GBP417,911; FY20:
GBP835,822) has been recognised in General and administrative
expenses.
Grant date 24-Apr-19 24-Apr-19 24-Apr-19
Vesting date 24-Apr-20 24-Apr-21 24-Apr-22
Equity/ Cash Equity/ Equity/ Cash
Method of settlement Cash
Vesting of shares (%) 20% 40% 40%
Number of LTIP shares granted 2,800,000 5,600,000 5,600,000
Exercise price (pence per share) 0.0147 0.0147 0.0147
Fair value of LTIP shares granted
(pence per share) 0.107493 0.121739 0.104486
Expected volatility (%) 68.00% 64.18% 55.97%
In April 2020, and upon meeting relevant performance targets,
2,190,519 LTIP shares vested (80% of the 1st tranche). These shares
will be issued during FY21.
18. Borrowings
The borrowings comprise of the following:
30 Sep 2020 30 Sep 2019 31 March
2020
-------------------------------- ------------ ------------ -----------
Term loans and non-convertible
debentures at amortised cost
and cash credit loans at cost 44,281,691 70,743,240 56,827,685
Total 44,281,691 70,743,240 56,827,685
-------------------------------- ------------ ------------ -----------
The borrowings are reconciled to the statement of financial
position as follows:
30 Sep 2020 30 Sep 2019 31 March
2020
----------------------------------- ------------ ------------ -----------
Current liabilities
Amounts falling due within one
year 1,430,290 26,754,827 23,746,229
Non-current liabilities
Amounts falling due after 1 year
but not more than
5 years 42,851,401 43,988,413 33,081,456
Total 44,281,691 70,743,240 56,827,685
----------------------------------- ------------ ------------ -----------
The Group raised approximately GBP21.1 million (Rs2 billion)
during June 2020 through non-convertible debentures (NCDs) issue
with a three years term and coupon rate of 9.85%. NCD's proceeds
was used to repay the FY21 and FY22 (i.e. to March 2023) principal
term loans obligations.
19. Post - reporting date events
Subsequent to 30 September 2020, the Group has collected
contractual claims payments from its customers under the power
purchase agreements amounting to GBP9.6 million (Rs0.9 billion)
(see note (9)). These contractual claims were accumulated over
several periods and were recognised as Other income in these
financial statements.
-ends-
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(END) Dow Jones Newswires
December 01, 2020 02:00 ET (07:00 GMT)
Opg Power Ventures (AQSE:OPG.GB)
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