|
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) - as issued by
the International Accounting Standards Board 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.
|
|
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, certain new standards, and amendments
to existing standards have been published by the IASB that are not
yet effective, and have not been adopted early by the Group.
Information on those expected to be relevant to the Group's
financial statements is provided below.
|
|
|
Management anticipates that all
relevant pronouncements will be adopted in the Group's accounting
policies for the first period beginning after the effective date of
the pronouncement. New standards, interpretations and amendments
not either adopted or listed below are not expected to have a
material impact on the Group's financial statements.
|
|
b)
|
Changes in accounting
Standards
|
|
|
The following standards and
amendments to IFRS became effective for the period beginning on 1
January 2022 and did not have a material impact on the consolidated
financial statements:
|
|
|
• IFRS 1, 'First time adoption of
IFRS' has been amended for a subsidiary that becomes a first-time
adopter after its parent. The subsidiary may elect to measure
cumulative translation differences for foreign operations using the
amounts reported by the parent at the date of the parent's
transition to IFRS.
|
|
|
• IFRS 9, 'Financial Instruments'
has been amended to include only those costs or fees paid between
the borrower and the lender in the calculation of "the 10% test"
for derecognition of a financial liability. Fees paid to third
parties are excluded from this calculation.
|
|
|
• IFRS 16, 'Leases', amendment to
the Illustrative Example 13 that accompanies IFRS 16 to remove the
illustration of payments from the lessor relating to leasehold
improvements. The amendment intends to remove any potential
confusion about the treatment of lease incentives.
|
|
i
|
Amendments to IFRS 16, Covid 19
"related rent concessions"
|
|
|
The amendments permit lessees, as
a practical expedient, not to assess whether particular rent
concessions occurring as a direct consequence of the Covid-1
pandemic are lease modifications and instead, to account for those
rent concessions as they were not in lease modifications.
Initially, these amendments were to apply until June 30,
2021.
|
|
ii
|
Amendments to IFRS 16, Covid 19
"related rent concessions beyond 30 June 2021"
|
|
|
In light of the fact that the
Covid-19 pandemic is continuing, the LASB extended the application
period of the practical expenditure with respect to accounting for
Covid-19-related rent concessions through June 30, 2022
|
|
iii
|
Amendments to IFRS 9, IAS 39, IFRS
7, IFRS 4, and IFRS 16 "Interest rate benchmark reform (phase
2)"
|
|
|
IFRS9. IAS 39, IFRS 7, The
amendments provide temporary relief to adopters regarding the
financial reporting impact that will result from replacing
Interbank Offered Rates (IBOR) with alternative risk-free rates
(RFRS). The amendments provide for the following practical
expedients:
Treatment of contract
modifications or changes in contractual cash flows due directly to
the Reform-such as fluctuations in a market interest rate-as
changes in a floating rate, allow changes to the designation and
documentation of a hedging relationship required by IBOR reform
without discontinuing hedge accounting. Temporary relief from
having to meet the separately identifiable requirement when an RFR
instrument is designated as a hedge of a risk comes in connection
with the IBOR Reform.
|
|
iv
|
Amendments to IFRS 9, IAS 39 and
IFRS 7, "Interest Rate Benchmark Reform"
|
|
|
In September 2019, the IASB
published amendments to IFRS 9, IAS 39 and IFRS 7, "Interest Rate
Benchmark Reform." The Phase 1 amendments of the IASB's Interest
Rate Benchmark Reform project (IBOR reform) provide for temporary
exemption from applying specific hedge accounting requirements to
hedging relationships that are directly affected by IBOR reform.
The exemptions have the effect that IBOR reform should not
generally cause hedge relationships to be terminated due to
uncertainty about when and how reference interest rates will be
replaced. However, any hedge ineffectiveness should continue to be
recorded in the income statement under both IAS 39 and IFRS 9.
Furthermore, the amendments set out triggers for when the
exemptions will end, which include the uncertainty arising from
IBOR reform. The amendments have no impact on Group's Consolidated
Financial Statements.
|
|
v
|
Amendments to IFRS 4, "Extension
of the temporary exemption from IFRS 9"
|
|
|
Deferral of initial application of
IFRS 9 for insurers
|
|
c)
|
Standards and Interpretations Not
Yet Applicable
|
|
|
The IASB and the IFRS IC have
issued the following additional standards and interpretations.
Group does not apply these rules because their application is not
yet mandatory. Currently, however, these adjustments are not
expected to have a material impact on the consolidated financial
statements of the Group:
|
|
i
|
Amendments to IAS 16-proceeds
before intended use
|
|
|
The amendments prohibit a company
from deducting from the cost of property, plant and equipment
amounts received from selling items produced while the Company is
preparing the asset for its intended use. Instead, a company will
recognize such sales proceeds and related cost in profit or
loss.
|
|
ii
|
Amendments to IAS 37-Onerous
contracts-cost of Fulfilling a contract
|
|
|
Clarification that all costs
directly attributable to a contract must be considered when
determining the cost of fulfilling the contract.
|
|
iii
|
Amendments to IFRS 3-Reference to
the Conceptual Framework
|
|
|
Reference to the revised 2018 IFRS
Conceptual Framework. Priority application of LAS 37 or IFRIC 21 by
the acquirer to identify acquired liabilities. No recognition of
contingent assets acquired allowed.
|
|
iv
|
Annual Improvements Project-Annual
Improvements to IFRSs 2018-2020 Cycle
|
|
|
Minor amendments to IFRS 1, IFRS
9, IFRS 16 and IAS 41.
|
|
v
|
IFRS 17 "Insurance contracts
including Amendments to IFRS 17"
|
|
|
The new IFRS 17 standard governs
the accounting for insurance contracts and supersedes IFRS
4.
|
|
vi
|
Amendment to IFRS 17-Initial
Application of IFRS 17 and IFRS 9-Comparative
Information
|
|
|
The amendment concerns the
transitional provisions for the initial joint application of IFRS
17 and IFRS 9.
|
|
vii
|
Amendments to IAS 1-Classification
of Liabilities as Current or Non-current Amendments to IAS
1-Classification of Liabilities as Current or Non-current-Deferral
of Effective Date
|
|
|
Clarification that the
classification of liabilities as current or non-current is based on
the rights the entity has at the end of the reporting
period.
|
|
viii
|
Amendments to IAS 1 and IFRS
Practice Statement 2-Disclosure of Accounting Policies
|
|
|
Clarification that an entity must
disclose all material (formerly "significant") accounting policies.
The main characteristic of these items is that, together with other
information included in the financial statements, they can
influence the decisions of primary users of the financial
statements.
|
|
ix
|
Amendments to IAS 8-Definition of
Accounting Estimates
|
|
|
Clarification with regard to the
distinction between changes in accounting policies (retrospective
application) and changes in accounting estimates (prospective
application).
|
|
x
|
Amendments to IAS 12-Deferred Tax
related to Assets and Liabilities arising from a Single
transaction.
|
|
|
Clarification that the initial
recognition exemption of IAS 12 does not apply to leases and
decommissioning obligations. Deferred tax is recognized on the
initial recognition of assets and liabilities arising from such
transactions.
|
|
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 ('₤'), the functional and presentation currency of the
Company.
|
|
|
Going Concern
|
|
|
In response to the recent global
challenges, including the Covid-19 pandemic and the war in Ukraine,
which have led to significant increases in commodity prices and
inflation, particularly impacting coal prices, the Group has
proactively conducted a Reverse Stress Test (RST). This analysis
was aimed at evaluating the potential effects on the receivables
and other financial assets.
(1)Despite the volatility in
commodity prices and inflationary pressures, the Group's financial
health remains resilient.
(2) The Group has implemented
robust risk management strategies, including cost control measures
and operational efficiencies, which have helped in managing the
increased financial pressures.
(3) As at 31 March 2024 the Group
had £12.57m in cash and cumulative net current assets of £33.77m
and the Group's liquidity position remains strong, ensuring that
the Group can meet short-term obligations and navigate through
economic uncertainties without compromising the operational
stability.
(4) The Group's ability to adapt
to changing market conditions and rapidly implement strategic
adjustments has been crucial in sustaining the Group's performance
through these challenging times.
The Reverse Stress assessment
affirms that the Group remains in a strong position, and concerns
regarding the Group's going concern status are not an
issue.
|
|
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 31 March
2024. 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 statement of changes in equity.
|
|
|
Amidst rapid economic growth
resulting in escalating electricity demand, the Government of India
has placed its trust on the capacity additions in the thermal power
sector, in order to meet the strong domestic demand for power in
the Country. Recognizing the need to align with this vision of the
Nation, the Board made a strategic decision to sharpen its focus on
its core business of thermal power and consequently decided to
divest its investments in the solar projects during FY 2023-24.
Consequently, the Solar Companies, Aavanti Solar Energy Private
Limited, Aavanti Renewable Energy Private Limited, Mayfair
Renewable Energy (I) Private limited and Brics Renewables Energy
Private Limited, ceased to be the associate entities of the Group
and the Saan Renewable Private Limited Private Limited, Saman
Renewable Private Limited, Mark Renewables Private Limited, Mark
Solar Private Limited and Saman Solar Private Limited ceased to be
the subsidiaries of the Group. However, the Group continues to hold
the debentures subscirbed on the solar assets, maintaining a
strategic interest in the renewable energy landscape.
|
|
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:
|
|
|
i) Subsidiaries
|
|
|
|
Subsidiaries
|
Immediate parent
|
Country of
incorporation
|
% Voting
Right
|
% Economic
interest
|
|
|
March 2024
|
March 2023
|
March 2024
|
March 2023
|
|
|
Caromia Holdings limited
('CHL')
|
OPGPV
|
Cyprus
|
100
|
100
|
100
|
100
|
|
|
Gita Power and Infrastructure
Private Limited, ('GPIPL')
|
CHL
|
India
|
97.73
|
97.73
|
97.73
|
97.73
|
|
|
Saan Renewable Private Limited
Private Limited
|
OPGPG
|
India
|
-
|
100
|
-
|
100
|
|
|
Saman Renewable Private
Limited
|
OPGPG
|
India
|
-
|
100
|
-
|
100
|
|
|
Mark Renewables Private
Limited
|
OPGPG
|
India
|
-
|
100
|
-
|
100
|
|
|
Mark Solar Private
Limited
|
OPGPG
|
India
|
-
|
100
|
-
|
100
|
|
|
Saman Solar Private
Limited
|
OPGPG
|
India
|
-
|
100
|
-
|
100
|
|
|
OPG Power Generation Private
Limited ('OPGPG')
|
GPIPL
|
India
|
81.42
|
81.42
|
99.99
|
99.90
|
|
|
Samriddhi Surya Vidyut Private
Limited
|
OPGPG
|
India
|
100.00
|
100.00
|
100.00
|
100.00
|
|
|
Powergen Resources Pte
Ltd
|
OPGPV
|
Singapore
|
95
|
95
|
95
|
95
|
|
|
|
|
|
ii) Investments in Joint ventures
|
|
|
Joint ventures
|
Venturer
|
Country of incorporation
|
% Voting
right
|
% Economic
interest
|
|
|
March 2024
|
March 2023
|
March 2024
|
March 2023
|
|
|
Padma Shipping Limited
("PSL")
|
OPGPV / OPGPG
|
Hong Kong
|
0
|
50
|
0
|
50
|
|
|
The company has been deregistered
and notice to the effect has been issued by the Companies Registry,
Hong Kong on 14-07-2023.
|
|
|
iii) Investments in Associates
|
|
|
Associates
|
|
Country of
incorporation
|
% Voting
Right
|
% Economic
interest
|
|
|
March 2024
|
March 2023
|
March 2024
|
March 2023
|
|
|
Aavanti Solar Energy Private
Limited
|
India
|
-
|
31
|
-
|
31
|
|
|
Mayfair Renewable Energy (I)
Private Limited
|
India
|
-
|
31
|
-
|
31
|
|
|
Aavanti Renewable Energy Private
Limited
|
India
|
-
|
31
|
-
|
31
|
|
|
Brics Renewable Energy Private
Limited
|
India
|
-
|
31
|
-
|
31
|
|
|
e)
|
Foreign currency translation
|
|
|
|
The functional currency of the
Company is the Great Britain Pound Sterling (£). 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 (£) 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 (£) are the closing rate as at 31
March 2024: 105.28 (2023: 101.44) and the average rate for the year
ended 31 March 2024: 104.06 (2023: 96.79).
|
|
|
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 10 to 45
days.
|
|
|
|
Revenue
|
|
|
|
Revenue from providing electricity
to captive power shareholders and sales to other customers is
recognised on the basis of billing cycle under the contractual
arrangement with the captive power shareholders & customers
respectively and reflects the value of units of power supplied and
the applicable 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.
For STOA, revenue is earned at a
point in time of joint meter reading by both buyer and seller for
each billing month.
For IEX, revenue is earned on
daily basis of supply based on the bid and allotted quantum which
gets reconciled at a point in time of meter reading 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 analyzing 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 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.
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;
• 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.
In case of reclassification,
previously recognised impairment loss is reversed only if there has
been a change in the assumptions used to determine the investment's
recoverable amount since the last impairment loss was recognised.
The reversal is limited so that the carrying amount of the
investment does not exceed its recoverable amount, nor exceed the
carrying amount that would have been determined, had no impairment
loss been recognised for the investments in prior years. Such
reversal is recognised in the profit or loss. Once the Company
ceases to classify a component as assets held for sale, the results
of that component previously presented in discontinued operations
will be reclassified and included in income from continuing
operation for the period presented.
|
|
|
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.
|
|
|
|
Employees Benefit
Trust
|
|
|
|
|
The Group has established an
Employees Benefit Trust (hereinafter 'the EBT') for investments in
the Company's shares for employee benefit schemes. IOMA Fiduciary
in the Isle of Man have been appointed as Trustees of the EBT with
full discretion invested in the Trustee, independent of the
company, in the matter of share purchases. As at present, no
investments have been made by the Trustee nor any funds advanced by
the Company to the EBT. The Company is yet to formulate any
employee benefit schemes or to make awards thereunder.
|
|
|
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 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. During FY24 there is only
one operating segment thermal power. There are no geographical
segments as all revenues arise from India. All the non current
assets are located in India.
|
|
|
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.
|
|
|
|
Recoverability of deferred
tax assets
|
|
|
|
|
The recognition of deferred tax
assets requires assessment of future taxable profit (see note
5(h)). Deferred tax assets are recognised to the extent that it is
probable that they will be able to be utilised against future
taxable income.
|
|
|
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:
|
|
|
|
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.
|
|
|
|
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.
|
|
|
|
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. The management considers
impairment upon there being evidence that there might be an
impairment, such as a lower market capitalization of the group or a
downturn in results.
|
|
|
|
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
|
Profit from discontinued operations
|
|
|
|
Non-current assets held for sale
and Profit from discontinued operations consists of:
|
|
|
|
|
Assets Held for
Sale
|
Liabilities classified as
held for sale
|
Profit from discontinued
operations
|
|
|
|
|
At 31 March
2024
|
At 31 March
2023
|
At 31 March
2024
|
At 31 March
2023
|
For FY 24
|
For FY 23
|
|
|
|
i Interest in Solar entities Note
7(b)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
ii Share of Profit on fair value
of investments, in Solar entities Note 7(b)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
iii Gain on deconsolidation of
Solar entities
|
-
|
-
|
-
|
-
|
(2,078)
|
-
|
|
|
|
Total
|
-
|
-
|
-
|
-
|
(2,078)
|
-
|
|
|
|
|
|
|
|
|
|
Non-current Assets held-for-sale and discontinued
operations
|
|
|
|
|
|
(a) Assets of disposal group classified as
held-for-sale
|
As at 31st March
2024
|
As at 31st March
2023
|
|
|
|
Property, plant and
equipment
|
-
|
-
|
|
|
|
Trade and other
receivables
|
-
|
-
|
|
|
|
Other short-term assets
|
-
|
-
|
|
|
|
Restricted cash
|
-
|
-
|
|
|
|
Cash and cash
equivalents
|
-
|
-
|
|
|
|
Investment in associates
classified as held for sale
|
-
|
-
|
|
|
|
Total
|
-
|
-
|
|
|
|
|
|
|
|
|
|
(b) Analysis of the results of discontinued operations is as
follows:
|
For FY 24
|
For FY 23
|
|
|
|
Revenue
|
-
|
-
|
|
|
|
Operating profit before
impairments
|
-
|
-
|
|
|
|
Other Expenses
|
1,921
|
|
|
|
|
Finance income
|
-
|
-
|
|
|
|
Finance cost
|
157
|
-
|
|
|
|
Current Tax
|
-
|
-
|
|
|
|
Deferred tax
|
-
|
-
|
|
|
|
Share of Profit/ (Loss) on fair
value of investments, in Solar entities
|
-
|
-
|
|
|
|
Gain on deconsolidation of Solar
entities
|
(2,078)
|
-
|
|
|
|
Profit / (Loss) from Solar operations
|
-
|
-
|
|
|
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. During FY24 there is only
one operating segment thermal power. 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 customer exceeding 10% of total sales revenue amounts to
£47,386,876.84 from TANGEDCO & £43,510,481.54 from IEX &
£66,999,457.55 from STOA sales to Andhra Pradesh Discom (2023:
£51,247,620).
Segmental information
disclosure
|
|
|
|
|
Continuing
operations
|
Discontinued
operations
|
|
|
|
|
Thermal
|
Solar
|
|
|
|
Segment Revenue
|
FY24
|
FY23
|
FY24
|
FY23
|
|
|
|
Sales
|
155,687,252
|
58,683,036
|
-
|
-
|
|
|
|
Total
|
155,687,252
|
58,683,036
|
-
|
-
|
|
|
|
Other Operating income
|
3,606,866
|
1,455,039
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
impairment
|
(5,521,962)
|
(5,696,860)
|
-
|
-
|
|
|
|
|
|
|
-
|
-
|
|
|
|
Profit from operation
|
11,158,692
|
10,442,223
|
-
|
-
|
|
|
|
Finance Income
|
1,967,022
|
1,599,860
|
-
|
-
|
|
|
|
Finance Cost
|
(5,571,272)
|
(5,925,076)
|
-
|
-
|
|
|
|
Tax expenses
|
(3,443,893)
|
(3,163,596)
|
-
|
-
|
|
|
|
Reversal of FV Impairment of
associates
|
-
|
(2,950,958)
|
-
|
-
|
|
|
|
Share of Profit, (Loss) on fair
value of investments, in Solar entities
|
-
|
1,355,413
|
-
|
-
|
|
|
|
Profit / (loss) for the
year
|
4,110,550
|
7,259,782
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
272,935,916
|
253,779,545
|
-
|
-
|
|
|
|
Liabilities
|
102,457,236
|
82,147,208
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
9
|
Costs of inventories and employee benefit expenses included
in the consolidated statements of comprehensive
income
|
|
|
a)
|
Cost of fuel
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Included in cost of revenue:
|
|
|
|
|
|
Cost of fuel consumed
|
124,371,190
|
39,021,545
|
|
|
|
Depreciation
|
-
|
-
|
|
|
|
Other direct costs
|
3,646,344
|
3,241,660
|
|
|
|
Total
|
128,017,534
|
42,263,205
|
|
|
b)
|
Employee
benefit expenses forming part of general and administrative
expenses are as follows:
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Salaries and wages
|
2,492,231
|
2,651,267
|
|
|
|
Employee benefit costs
*
|
487,530
|
186,396
|
|
|
|
Long Term Incentive Plan (Note
22)
|
-
|
-
|
|
|
|
Total
|
2,979,761
|
2,837,663
|
|
|
c)
|
Foreign exchange movements
(realised and unrealised) included in the Finance costs is as
follows:
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Foreign exchange realised -
loss/(gain)
|
75,627
|
1,278,303
|
|
|
|
Foreign exchange unrealised-
loss/(gain)
|
170,950
|
(121,677)
|
|
|
|
Total
|
246,577
|
1,156,626
|
|
|
|
|
|
|
|
|
|
Auditor's remuneration for audit
services amounting to £46,000 (2023: £74,000) is included in
general and administrative expenses and excludes travel
reimbursements.
|
|
|
10
|
Other operating income and expenses
|
|
|
|
|
|
|
a)
|
Other operating income
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Surcharge TANGEDCO
|
2,977,906
|
1,455,039
|
|
|
|
Margin on Trading of
Power
|
628,960
|
(278,623)
|
|
|
|
Total
|
3,606,866
|
1,176,416
|
|
|
|
Other operating income represents
contractual claims payments from company's customers under the
power purchase agreements which were accumulated over several
periods.
|
|
|
b)
|
Other Income
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Provisions no longer required
written back
|
-
|
-
|
|
|
|
Sale of coal (Margin)
|
338,390
|
2,240,486
|
|
|
|
Sale of fly ash
|
123,996
|
117,399
|
|
|
|
Power trading commission and other
services
|
-
|
-
|
|
|
|
Profit on disposal of financial
instruments*
|
(297,408)
|
381,455
|
|
|
|
Others
|
4,559
|
3,451,727
|
|
|
|
Total
|
169,536
|
6,191,067
|
|
|
|
*Profits on disposal of financial
instruments include £291,688 of unrealised gain/loss on mark to
market rate as on reporting date of mutual funds held during the
year.
*Profits on disposal of financial
instruments include profit on sale of investments in associate
entities.
|
|
|
11
|
Finance Costs
|
|
|
|
|
|
Finance costs are comprised
of:
|
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Interest expenses on
borrowings
|
4,572,000
|
4,242,700
|
|
|
|
Net foreign exchange loss (Note
9)
|
246,578
|
1,156,626
|
|
|
|
Other finance costs
|
752,695
|
525,750
|
|
|
|
Total
|
5,571,272
|
5,925,076
|
|
|
|
Other finance costs include
charges and cost related to LC's for import of coal and other
charges levied by bank on transactions
|
|
|
|
|
|
|
|
|
12
|
Finance income
|
|
|
|
|
|
Finance income is comprised
of:
|
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Interest income on bank deposits
and advances
|
1,967,022
|
1,218,405
|
|
|
|
Total
|
1,967,022
|
1,218,405
|
|
|
|
|
|
|
|
|
13
|
Tax expenses
|
|
|
|
|
|
Tax Reconciliation
|
|
|
|
|
|
Reconciliation between tax expense
and the product of accounting profit multiplied by India's domestic
tax rate for the years ended 31 March 2024 and 2023 is as
follows:
|
|
|
|
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Accounting profit before
taxes
|
7,554,443
|
10,423,378
|
|
|
|
Enacted tax rates
|
34.94%
|
34.94%
|
|
|
|
Tax expense / profit at enacted
tax rate
|
2,639,824
|
3,642,345
|
|
|
|
Exempt Income due to tax
holiday
|
-
|
-
|
|
|
|
Foreign tax rate
differential
|
15,618
|
(135,973)
|
|
|
|
Unused tax losses brought forward
and carried forward
|
-
|
-
|
|
|
|
Non deductible / (Non-taxable)
items
|
2,039,392
|
198,000
|
|
|
|
MAT credit
|
(1,250,941)
|
(540,777)
|
|
|
|
Others
|
-
|
-
|
|
|
|
Actual tax for the period
|
3,443,893
|
3,163,596
|
|
|
|
|
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Current tax
|
(1,250,941)
|
(539,716)
|
|
|
|
Deferred tax
|
(2,192,952)
|
(2,623,880)
|
|
|
|
Total tax expenses on income from
continued operations
|
(3,443,893)
|
(3,163,596)
|
|
|
|
Add: tax on income from
discontinuing operations
|
-
|
-
|
|
|
|
Tax reported in the statement of comprehensive
income
|
(3,443,893)
|
(3,163,596)
|
|
|
|
|
|
|
|
|
|
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 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% (31 March 2023:
17.47%).
The Group has carried forward
credit in respect of MAT tax liability paid to the extent it is
probable that future taxable profit will be available against which
such tax credit can be utilized.
|
|
|
|
|
|
|
|
Deferred income tax for the Group
at 31 March 2024 and 2023 relates to the following:
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Deferred income tax
assets
|
|
|
|
|
|
Unused tax losses brought forward
and carried forward
|
-
|
-
|
|
|
|
MAT credit entitlement
|
10,920,740
|
11,741,110
|
|
|
|
|
10,920,740
|
11,741,110
|
|
|
|
Deferred income tax
liabilities
|
|
|
|
|
|
Property, plant and
equipment
|
31,578,613
|
30,929,471
|
|
|
|
Mark to market on
available-for-sale financial assets
|
-
|
-
|
|
|
|
|
31,578,613
|
30,929,471
|
|
|
|
Deferred income tax liabilities, net
|
20,657,873
|
19,188,361
|
|
|
|
|
|
|
|
|
|
Movement in temporary differences
during the year
|
|
|
|
|
|
Particulars
|
As at 01 April
2023
|
Deferred tax asset /
(liability) for the year
|
Classified as (Asset) /
Liability held for sale
|
Translation
adjustment
|
|
|
|
Property, plant and
equipment
|
(30,929,471)
|
(2,810,234)
|
-
|
2,161,091
|
|
|
|
Unused tax losses brought forward
and carried forward
|
-
|
-
|
-
|
-
|
|
|
|
MAT credit entitlement
|
1,17,41,110
|
-
|
-
|
(8,20,370)
|
|
|
|
Mark to market gain / (loss) on
financial assets measured at FVPL
|
-
|
-
|
-
|
-
|
|
|
|
Deferred income tax (liabilities) / assets,
net
|
(19,188,361)
|
(2,810,234)
|
-
|
1,340,721
|
|
|
|
|
|
|
|
|
|
|
|
Particulars
|
As at 01 April
2022
|
Deferred tax asset /
(liability) for the year
|
Classified as (Asset) /
Liability held for sale
|
Translation
adjustment
|
|
|
|
Property, plant and
equipment
|
(29,015,582)
|
(2,505,899)
|
-
|
592,011
|
|
|
|
Unused tax losses brought forward
and carried forward
|
-
|
-
|
-
|
-
|
|
|
|
MAT credit entitlement
|
11,985,655
|
-
|
-
|
(244,545)
|
|
|
|
Mark to market gain / (loss) on
financial assets measured at FVPL
|
-
|
-
|
-
|
-
|
|
|
|
Deferred income tax (liabilities) / assets,
net
|
(17,029,927)
|
(2,505,899)
|
-
|
347,466
|
|
|
|
|
|
|
|
|
|
In assessing the recoverability of
deferred income tax assets, management considers whether it is more
likely than not that some portion or all of the deferred income tax
assets will be realized. The ultimate realization of deferred
income tax assets is dependent upon the generation of future
taxable income during the periods in which the temporary
differences become deductible. The amount of the deferred income
tax assets considered realizable, however, could be reduced in the
near term if estimates of future taxable income during the carry
forward period are reduced.
Shareholders resident outside the
Isle of Man will not suffer any income tax in the Isle of Man on
any income distributions to them. However, dividends are taxable in
India in the hands of the recipient.
|
|
|
|
|
|
|
|
14
|
Intangible assets
|
Acquired software
licences
|
|
|
|
|
Cost
|
|
|
|
|
|
At 31 March 2022
|
786,502
|
|
|
|
|
Additions
|
5,174
|
|
|
|
|
Exchange adjustments
|
(14,577)
|
|
|
|
|
At 31 March 2023
|
777,099
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2023
|
777,099
|
|
|
|
|
Additions
|
9,718
|
|
|
|
|
Exchange adjustments
|
(28,387)
|
|
|
|
|
At 31 March 2024
|
758,430
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment
|
|
|
|
|
|
At 31 March 2022
|
774,692
|
|
|
|
|
Charge for the
year
|
3,255
|
|
|
|
|
Exchange adjustments
|
(14,250)
|
|
|
|
|
At 31 March 2023
|
763,698
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2023
|
763,698
|
|
|
|
|
Charge for the
year
|
5,571
|
|
|
|
|
Exchange adjustments
|
(27,849)
|
|
|
|
|
At 31 March 2024
|
741,419
|
|
|
|
|
|
|
|
|
|
|
Net book value
|
|
|
|
|
|
At 31 March 2024
|
17,010
|
|
|
|
|
At 31 March 2023
|
13,401
|
|
|
|
|
|
|
|
|
15
|
Property, plant and equipment
|
|
|
|
The property, plant and equipment
comprises of:
|
|
|
|
|
Power
stations
|
Other plant &
equipment
|
Vehicles
|
Right-of-use
|
Asset under
construction
|
Total
|
|
|
|
Cost
|
|
|
|
|
|
|
|
|
|
At 1st April 2022
|
205,217,517
|
1,855,448
|
730,306
|
43,843
|
1,767,219
|
218,136,670
|
|
|
|
Additions
|
385,220
|
14,028
|
-
|
-
|
676,736
|
1,107,802
|
|
|
|
Transfers on
capitalisation
|
1,148,303
|
-
|
-
|
|
(1,148,303)
|
-
|
|
|
|
Sale / Disposals
|
(42,436)
|
-
|
(60,645)
|
-
|
-
|
(103,081)
|
|
|
|
Exchange adjustments
|
(3,803,566)
|
(34,389)
|
(13,536)
|
(813)
|
(32,754)
|
(4,043,014)
|
|
|
|
At 31 March 2023
|
202,905,038
|
1,835,087
|
656,125
|
43,030
|
1,262,898
|
215,098,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1st April 2023
|
202,905,038
|
1,835,087
|
656,125
|
43,030
|
1,262,898
|
215,098,377
|
|
|
|
Additions
|
671,051
|
176,718
|
2,329,426
|
-
|
359,225
|
3,548,339
|
|
|
|
Transfers on
capitalisation
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
Sale / Disposals
|
-
|
(45,827)
|
-
|
(43,030)
|
(19,821)
|
(108,678)
|
|
|
|
Exchange adjustments
|
(7,422,075)
|
(66,375)
|
(23,766)
|
-
|
(55,791)
|
(7,872,817)
|
|
|
|
At 31 March 2024
|
196,154,014
|
1,899,603
|
2,961,784
|
0
|
1,546,509
|
210,665,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment
|
|
|
|
|
|
|
|
|
|
At 1 April 2022
|
42,722,787
|
1,340,816
|
586,541
|
7,295
|
-
|
44,730,992
|
|
|
|
Charge for the year
|
5,361,890
|
281,236
|
36,666
|
-
|
-
|
5,693,605
|
|
|
|
Sale / Disposals
|
(15,949)
|
-
|
(60,645)
|
(7,157)
|
-
|
(83,751)
|
|
|
|
Exchange adjustments
|
(812,100)
|
(25,385)
|
(11,104)
|
(138)
|
|
(850,120)
|
|
|
|
At 31 March 2023
|
47,256,628
|
1,596,667
|
551,457
|
0
|
-
|
49,490,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 April 2023
|
47,256,628
|
1,596,667
|
551,457
|
0
|
-
|
49,490,726
|
|
|
|
Charge for the year
|
5,130,451
|
207,118
|
165,962
|
-
|
-
|
5,516,391
|
|
|
|
Sale / Disposals
|
-
|
(38,738)
|
-
|
-
|
-
|
(38,738)
|
|
|
|
Exchange adjustments
|
(1,782,585)
|
(60,055)
|
(21,801)
|
-
|
-
|
(1,868,445)
|
|
|
|
Solar assets classified as Asset
Held for Sale (note 7(b))
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
Adjustments on account of
deconsolidation of a subsidiary
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
At 31 March 2024
|
50,604,494
|
1,704,992
|
695,617
|
0
|
-
|
53,099,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net book value
|
|
|
|
|
|
|
|
|
|
At 31 March 2024
|
145,549,520
|
194,611
|
2,266,167
|
(0)
|
1,546,509
|
157,565,290
|
|
|
|
At 31 March 2023
|
155,648,411
|
238,420
|
104,667
|
43,030
|
1,262,898
|
165,607,650
|
|
|
|
|
|
|
|
The net book value of land and
buildings block comprises of:
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Freehold land
|
7,626,376
|
7,904,854
|
|
|
|
Buildings
|
382,106
|
405,372
|
|
|
|
|
8,008,482
|
8,310,226
|
|
|
|
|
|
|
|
Property, plant and equipment with
a carrying amount of £ 155,869,612 (2023 £ 164,159,294) is subject
to security restrictions.
(a) The Group considered both
qualitative and quantitative factors when determining whether an
Asset or CGU may be impaired. Assets related to each segment and
the cash inflows generated by each are separately identifiable and
independent of other assets or groups of assets. No impairment loss
was recognized for the consulting segment during the year
23-24.
The recoverable amount of segment
was determined based on value-in-use calculations, covering a
detailed 20 year period forecast for Thermal Assets using DCF
methodology by management. The present value of the expected cash
flows is determined by applying a suitable discount rate reflecting
current market assessments of the time value of money and risks
specific to the segment.
The Present Value of Cash Flows
thus determined were compared with the Carrying Cost of PPE and it
was found that the PV Values were on the Higher side of the
Carrying cost of Property Plant and Equipment.
|
|
|
|
|
|
|
|
Year
ended 31 March 2024
|
Thermal
£ Mn
|
|
|
|
|
Present
Value of Cash Flows
|
285.96
|
|
|
|
|
Carrying Cost of PPE
|
155.1
|
|
|
|
|
|
|
|
|
Appropriate sensitivities to
understand impact on key estimates and under all scenarios were
tested and no impairment was triggered. Group has also considered
the impact of climate change and global energy transition.
Coal fired power generation will remain key to the energy mix for
India over the life of the Power Station. With the above
calculations, it was concluded that there is no impairment in
Thermal Assets.
Management's key assumptions included:
Cash flow projections reflect
stable Profit Margins and Cash Flows on Thermal Assets. No expected
efficiency improvements have been taken into account and expenses
were considered based on forecasts of inflation and our current
actual expenses and the Revenue forecasts were based on the Rates
at which the PPA with Utility companies were entered or are
prevalent in the market.
Current exchange rate of 1USD to
INR 83.01 has been considered and is depreciated by 2 % Year on
Year over the forecast period. The exchange rate is estimated to be
consistent with the average market forward exchange rate over the
budget period.
The discount rate was derived
based on weighted average cost of capital (WACC) for comparable
entities in the industry, based on market data. The discount rates
reflect appropriate adjustments relating to market risk and
specific risk factors of each segment. Further, management
considered the maturity and stability when determining the
appropriate adjustments to this rate.
|
|
|
|
(b) Cash flow
projections
|
|
|
|
Thermal
|
|
|
|
|
Parameters
|
Values
|
|
|
|
|
Plant
Load Factors (%)
|
63 to
84
|
|
|
|
|
Realisable Tariff (Pence)
|
4.9 to
7.7
|
|
|
|
|
Price
of Coal (USD/Ton)
|
60 to
50
|
|
|
|
|
WACC
(%)
|
13.92
|
|
|
|
|
Cost of
Debt (%)
|
8.71
|
|
|
|
|
|
|
|
|
(c) From the results of the
Reverse Stress Test as under, it may be observed that Significant
Issues would be required to Impact the Cash flows of the entity,
only in extreme cases in the Year 24 where PLF drops from 68 % to
16 % and Cost of Coal Increases from $ 61 to $ 143 and Tariff per
Unit Drops from INR 7.5 to INR 4.7 and Forex Rate of INR to $
increases from 84 to 199 and no consequential impact in the ability
of generating Revenue and Profits were found.
|
|
|
|
|
|
|
|
Variables
|
Base Case
|
Reverse Stress
Test
|
|
|
|
FY 2025
|
FY 2025
|
FY 2026
|
|
|
|
PLF %
|
72
|
68.4
|
71.01
|
|
|
|
Cost of Coal ($)
|
54.86
|
57.6
|
56.45
|
|
|
|
Tariff (INR/Unit)
|
4.99
|
4.75
|
4.78
|
|
|
|
|
|
|
16
|
Investments accounted for using the equity
method
The carrying amount of investments
accounted for using the equity method is as follows:
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Investments in joint
venture
|
-
|
-
|
|
|
|
Impairment provision for
investments in joint venture (Note 7(a))
|
|
-
|
|
|
|
Investments in
Associates
|
-
|
16,159,133
|
|
|
|
Balance value of Investments in
Associates classified as Assets held for sale
|
|
-
|
|
|
|
Investments accounted for using the equity
method
|
-
|
16,159,133
|
|
|
|
|
|
|
|
|
|
a) Investment in associates (Note 5(d)
7(b))
|
|
|
|
|
|
Summarised aggregated financial
information of the Group's share in the associates.
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Profit from continuing
operations
|
-
|
1,355,413
|
|
|
|
Other comprehensive
income
|
-
|
-
|
|
|
|
Total comprehensive Income
|
-
|
1,355,413
|
|
|
|
|
|
|
|
|
|
Future Cash flows were determined
under the DCF method for the PPA period. The Present Value of cash
flows were found to be higher than the carrying cost of these
assets and no impairment was found to be existent. The details of
impairment analysis are provided in Note 15 above.
|
|
|
|
|
|
|
|
Aggregate carrying amount of the Group's interests in these
associates & other entities
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Associates & Other
Entities
|
18,307,543
|
15,245,563
|
|
|
|
Total carrying Amount
|
18,307,543
|
15,245,563
|
|
|
|
|
|
|
|
|
17
|
Other Assets
|
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
a) Short-term
|
|
|
|
|
|
Capital advances
|
-
|
-
|
|
|
|
Financial instruments measured at
fair value through P&L
|
9,893,198
|
4,792,732
|
|
|
|
Advances and other
receivables
|
8,293,435
|
8,843,735
|
|
|
|
Total
|
18,186,633
|
13,636,467
|
|
|
|
|
|
|
|
|
|
b) Long term
|
|
|
|
|
|
Advances to related
parties
|
-
|
-
|
|
|
|
Classified as asset held for sale
(note 7(a))
|
-
|
-
|
|
|
|
Lease deposits
|
-
|
-
|
|
|
|
Bank deposits
|
512,358
|
10,463
|
|
|
|
Other advances
|
-
|
-
|
|
|
|
Total
|
512,358
|
10,463
|
|
|
|
|
|
|
|
|
18
|
Trade and other receivables
|
|
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
|
Current
|
|
|
|
|
|
|
Trade receivables
|
37,086,020
|
31,914,606
|
|
|
|
|
Other receivables
|
-
|
-
|
|
|
|
|
Total
|
37,086,020
|
31,914,606
|
|
|
|
|
|
|
|
|
|
|
|
The Group's trade receivables are
classified at amortised cost unless stated otherwise and are
measured after allowances for future expected credit losses, see
"Credit risk analysis" in note 30 "Financial risk management
objectives and policies" for more information on credit risk. The
carrying amounts of trade and other receivables, which are measured
at amortised cost, approximate their fair value and are
predominantly non-interest bearing.
|
|
|
|
|
|
|
|
|
|
|
19
|
Inventories
|
|
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
|
Coal and fuel
|
17,317,906
|
6,706,467
|
|
|
|
|
Stores and spares
|
1,418,793
|
1,012,929
|
|
|
|
|
Total
|
18,736,699
|
7,719,396
|
|
|
|
|
|
|
|
|
|
|
|
The entire amount of above
inventories has been pledged as security for borrowings
|
|
|
|
|
|
|
|
|
|
|
20
|
Cash and cash equivalents
|
|
|
|
|
|
|
Cash and short term deposits
comprise of the following:
|
|
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
|
Investment in Mutual
funds
|
-
|
-
|
|
|
|
|
Cash at banks and on
hand
|
8,768,162
|
3,319,344
|
|
|
|
|
Short-term deposits
|
2,946,094
|
-
|
|
|
|
|
Total
|
11,714,256
|
3,319,344
|
|
|
|
|
|
|
|
|
|
|
|
Short-term deposits are placed for
varying periods, depending on the immediate cash requirements of
the Group. They are recoverable on demand.
|
|
|
|
|
|
|
|
|
21
|
Restricted cash
|
|
|
|
|
a. Restricted cash
|
|
|
|
|
Current restricted cash represents
deposits and mutual funds with the maturity up to twelve
months amounting to £8,250,594 (2023 - £6,786,497) which have been
lien marked by the Group in order to establish Letters of Credits,
Bank Guarantees from the bankers and debenture redemption
fund.
|
|
|
|
|
b. Restricted cash
|
|
|
|
|
Non-Current restricted cash
represents deposits and mutual funds with the maturity more than
twelve months amounting to £1,862,075 (2023 -
£8,379,292).
|
|
|
|
|
|
|
|
|
22
|
Issued Share Capital
|
|
|
|
|
Share capital
|
|
|
|
|
The Company presently has only one
class of ordinary shares. For all matters submitted to vote in the
shareholders meeting, every holder of ordinary shares, as reflected
in the records of the Group on the date of the shareholders'
meeting, has one vote in respect of each share held. All shares are
equally eligible to receive dividends and the repayment of capital
in the event of liquidation of the Group.
As at 31 March 2024, the Company
has an authorised and issued share capital of 400,733,511 (2023:
400,733,511) equity shares at par value of £ 0.000147 (2023: £
0.000147) per share amounting to £58,909 (2023: £58,909) in
total.
|
|
|
|
|
Reserves
|
|
|
|
|
Share premium represents the
amount received by the Group over and above the par value of shares
issued. Any transaction costs associated with the issuing of shares
are deducted from share premium, net of any related income tax
benefits.
Foreign currency translation
reserve is used to record the exchange differences arising from the
translation of the financial statements of the foreign
subsidiaries.
Other reserve represents the
difference between the consideration paid and the adjustment to net
assets on change of controlling interest, without change in
control, other reserves also includes any costs related with share
options granted and gain/losses on re-measurement of financial
assets measured at fair value through other comprehensive
income.
Retained earnings include all
current and prior period results as disclosed in the consolidated
statement of comprehensive income less dividend
distribution.
|
|
|
|
|
|
|
|
|
23
|
Share based payments
|
|
|
|
|
Long term incentive
plan
|
|
|
|
|
The number of performance-related
awards is 14 m ordinary shares (the "LTIP Shares") (representing
approximately 3.6 per cent of the Company's issued share capital).
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.
- 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. No changes/revisions were made to LTIP during
the FY24 and no shares were issued during FY 24. The Carry forward
shares under LTIP reserves will be issued in the year 24-25. The
shares have not been issued because that was the time of COVID lock
downs and related disruptions including Administrative and
Logistics issues, thus delaying the process of allocation of shares
to the Executives over the three year period from 2020.
|
|
|
|
|
|
|
|
|
|
|
LTIP
granted
|
LTIP as at
01-Apr-23
|
Movements during the period
Expired/
|
LTIP
Outstanding
|
Latest
vesting
|
|
|
|
|
|
Cancelled
|
Exercised
|
|
|
|
|
|
|
Arvind Gupta
|
24-Apr-19
|
1,185,185
|
0
|
Nil
|
1,185,185
|
24-Apr-20
|
|
|
|
|
Dmitri Tsvetkov
|
24-Apr-19
|
568,889
|
0
|
Nil
|
568,889
|
24-Apr-20
|
|
|
|
|
Avantika Gupta
|
24-Apr-19
|
284,445
|
0
|
Nil
|
284,445
|
24-Apr-20
|
|
|
|
|
|
|
|
|
24
|
Borrowings
|
|
|
|
|
Borrowings comprise of the
following:
|
|
|
|
|
|
Interest rate (range
%)
|
Final
maturity
|
31 March
2024
|
31 March
2023
|
|
|
|
|
Borrowings at amortised
cost
|
9.9-10.851
|
Jan
2029
|
18,474,064
|
10,416,543
|
|
|
|
|
Non-Convertible Debentures at
amortised cost
|
9.85-12.75
|
Nov
2026
|
10,163,461
|
22,180,599
|
|
|
|
|
Total
|
|
|
28,637,525
|
32,597,142
|
|
|
|
|
1 Interest rate range for
Project term loans and Working Capital
|
|
|
|
|
|
|
|
|
|
|
|
The term loans, working capital
loans and non-convertible debentures taken by the Group are fully
secured by the property, plant, assets under construction and other
current assets of subsidiaries which have availed such
loans.
Term loans contain certain
covenants stipulated by the facility providers and primarily
require the Group to maintain specified levels of certain financial
metrics and operating results. As of 31 March 2024, the Group has
met all the relevant covenants.
The fair value of borrowings at 31
March 2024 was £ 28,637,525 (2023: £ 32,597,142). The fair values
have been calculated by discounting cash flows at prevailing
interest rates.
|
|
|
|
|
The borrowings are reconciled to
the statement of financial position as follows:
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
|
a. Current liabilities
|
|
|
|
|
|
|
Amounts falling due within one
year
|
9,022,924
|
25,498,900
|
|
|
|
|
|
|
|
|
|
|
|
b. Non-current liabilities
|
|
|
|
|
|
|
Amounts falling due after 1 year
but not more than 5 years
|
19,614,601
|
7,098,242
|
|
|
|
|
Total
|
28,637,525
|
32,597,142
|
|
|
|
25
|
Trade and other payables
|
|
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
|
a. Current
|
|
|
|
|
|
|
Trade payables
|
51,742,313
|
29,251,178
|
|
|
|
|
Creditors for capital
goods
|
105,329
|
263,545
|
|
|
|
|
Bank Overdraft
|
-
|
-
|
|
|
|
|
Other payables
|
-
|
-
|
|
|
|
|
Total
|
51,847,642
|
29,514,723
|
|
|
|
|
|
|
|
|
|
|
|
b. Non-current
|
|
|
|
|
|
|
Other payables
|
|
|
|
|
|
|
Provision for Gratuity
|
256,906
|
129,932
|
|
|
|
|
Provision for Leave
Encashment
|
39,154
|
20,301
|
|
|
|
|
Others
|
518,413
|
156,169
|
|
|
|
|
Total
|
814,473
|
306,402
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables include credit
availed from banks under letters of credit for payments in USD to
suppliers for coal purchased by the Group. Other trade payables are
normally settled on 45 days terms credit. The arrangements
are interest bearing and are payable within one year. With the
exception of certain other trade payables, all amounts are short
term. Creditors for capital goods are non-interest bearing and are
usually settled within a year. Other payables include
accruals for gratuity and other accruals for expenses.
|
|
|
|
26
|
Current tax assets (net)
Current tax assets (net) consists
of Advance tax and Tax deducted at source net of provision for
income tax for the year, amounting to £697,438 (2023:
£1,147,062).
|
|
|
|
|
|
|
|
|
|
|
27
|
Other liabilities
|
|
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
|
a. Current - Other Liabilities
|
|
|
|
|
|
|
Advance from Customers
|
381,886
|
84,889
|
|
|
|
|
Other Liabilities
|
100,934
|
418,167
|
|
|
|
|
Total
|
482,820
|
503,056
|
|
|
|
|
|
|
|
|
|
|
|
Other Liabilities consists of
Statutory liabilities of the Group.
|
|
|
|
|
|
|
|
|
|
|
|
b. Non-current - Other Liabilities
|
|
|
|
|
|
|
Other Liabilities
|
16,903
|
37,720
|
|
|
|
|
Total
|
16,903
|
37,720
|
|
|
|
|
|
|
|
|
|
|
28
|
Related party transactions
|
|
|
|
Where control exists:
|
|
|
|
|
Name of the party
|
Nature of
relationship
|
|
|
|
Caromia Holdings
limited
|
Subsidiary
|
|
|
|
OPG Power Generation Private
Limited
|
Subsidiary
|
|
|
|
Gita Power and Infrastructure
Private Limited
|
Subsidiary
|
|
|
|
Powergen Resources PTE
Ltd
|
Subsidiary
|
|
|
|
|
|
|
|
Key Management Personnel:
|
|
|
|
|
Name of the party
|
Nature of
relationship
|
|
|
|
N Kumar
|
Non-executive Chairman (from 4th April 2022)
|
|
|
|
Avantika Gupta
|
Chief
Executive Officer (from 4th April 2022)
|
|
|
|
Ajit Pratap Singh
|
Chief
Financial Officer (from 31st May 2022)
|
|
|
|
Jeremy Warner Allen
|
Deputy
Chairman
|
|
|
|
Mike Grasby (from February
2021)
|
Director
|
|
|
|
|
|
|
|
|
Related parties with whom the group had transactions during
the period
|
|
|
|
Name of the party
|
Nature of
relationship
|
|
|
|
Powergen Resources PTE
Ltd
|
Subsidiary
|
|
|
|
Samriddhi Bubna
|
Relative
of Key Management Personnel
|
|
|
|
|
|
|
|
|
|
Summary of transactions with related
parties
|
|
|
|
Name of the party
|
31 March
2024
|
31 March
2023
|
|
|
|
|
|
|
|
|
|
Remuneration to Samriddhi
Bubna
|
52,854
|
61,990
|
|
|
|
|
|
|
|
|
|
Summary of balance with related parties
|
|
|
|
|
|
Name of the party
|
Nature of balance
|
31 March
2024
|
31 March
2023
|
|
|
|
|
|
|
|
|
|
Outstanding balances at the
year-end are unsecured. Related party transaction are on arms
length basis. There have been no guarantees provided or received
for any related party receivables or payables. The assessment of
impairment is undertaken each financial year through examining the
financial position of the related party and the market in which the
related party operates.
|
|
|
|
|
|
|
29
|
Earnings per share
|
|
|
|
Both the basic and diluted
earnings per share have been calculated using the profit
attributable to shareholders of the parent company as the numerator
(no adjustments to profit were necessary for the year ended March
2024 or 2023).
The company has issued LTIP over
ordinary shares which could potentially dilute basic earnings per
share in the future.
The weighted average number of
shares for the purposes of diluted earnings per share can be
reconciled to the weighted average number of ordinary shares used
in the calculation of basic earnings per share (for the group and
the company) as follows:
|
|
|
|
|
|
|
|
|
|
Particulars
|
31 March
2024
|
31 March
2023
|
|
|
|
Weighted average number of shares
used in basic earnings per share
|
402,924,030
|
402,924,030
|
|
|
|
Shares deemed to be issued for no
consideration in respect of share based payments
|
-
|
-
|
|
|
|
Weighted average number of shares
used in diluted earnings per share
|
402,924,030
|
402,924,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30
|
Directors' remuneration
|
|
|
|
|
|
Name of directors
|
31 March
2024
|
31 March
2023
|
|
|
|
Ajit Pratap Singh
|
90,921
|
186,620
|
|
|
|
Avantika Gupta
|
115,317
|
229,861
|
|
|
|
Dmitri Tsvetkov
|
-
|
25,000
|
|
|
|
Jeremy Warner Allen
|
43,972
|
42,920
|
|
|
|
N Kumar
|
45,000
|
45,000
|
|
|
|
Mike Grasby
|
45,000
|
45,000
|
|
|
|
Total
|
340,209
|
574,401
|
|
|
|
|
|
|
|
|
|
The above remuneration is in the
nature of short-term employee benefits. As the future liability for
gratuity and compensated absences is provided on actuarial basis
for the companies in the group, the amount pertaining to the
directors is not individually ascertainable and therefore not
included above.
|
|
|
31
|
Business combination within the group without loss of
control
As per the original structure of
the group, two Cypriot subsidiaries of OPGPV, namely Gita Energy
Private Limited ('GEPL') and Gita Holdings Private Limited
('GHPL'), held the investments in the equity of the Group's Special
Purpose Vehicles (SPV) in India. During the year ended 31 March
2013, the management decided to interpose an Indian holding
Company, GPIPL in the structure and warehouse the SPV investments
in GPIPL. Accordingly, the shareholders of GEPL, GHPL and GPIPL had
entered into a scheme of arrangement to effect the above
restructuring of the group. As part of the regulatory requirements
in India, the group had applied and obtained approval from the High
court of Madras on 28 October 2011 subject to fulfilment of certain
conditions including approval of relevant regulatory authorities,
allotment of shares etc. The scheme had been consummated with
effect from 25 January 2013 upon issue of shares to the
shareholders of GEPL and GHPL, namely CHL and the assets and
liabilities of GEPL and GHPL have been taken over by GPIPL.
Consequent to the scheme of arrangement, the group also has gained
100% economic interest over GPIPL by virtue of an agreement entered
into with the minority shareholders of GPIPL dated 01 April
2012.
The above arrangement has been
considered as a business combination involving companies under the
group since then and has been accounted at the date that common
control was established using pooling of interest method. The
assets and liabilities transferred 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. There was no excess consideration paid in this
transaction.
|
|
|
|
|
|
|
32
|
Commitments and contingencies
|
|
|
|
Operating lease commitments
|
|
|
|
The Group leases office premises
under operating leases. The leases typically run for a period
up to 5 years, with an option to renew the lease after that date.
None of the leases includes contingent rentals.
Non-cancellable operating lease
rentals are payable as follows:
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
|
Not later than one year
|
-
|
-
|
|
|
|
Later than one year and not later
than five years
|
-
|
-
|
|
|
|
Later than five years
|
-
|
-
|
|
|
|
Total
|
-
|
-
|
|
|
|
|
|
|
|
Recognition of a right of use
asset NIL (2023 NIL).
|
|
|
|
|
|
|
|
Contingent liabilities
|
|
|
|
Disputed income tax demands £
4,448,130 (2023:£ 341,841 ).
Future cash flows in respect of
the above matters are determinable only on receipt of judgements /
decisions pending at various forums / authorities.
|
|
|
|
Guarantees and Letter of credit
|
|
|
|
The Group has provided bank
guarantees and letter of credits (LC) to customers and vendors in
the normal course of business. The LC provided as at 31 March 2024:
£43,951,191.14 (2023: £27,109,682) and Bank Guarantee (BG) as at 31
March 2024:
£5,750,073 (2023: £5,481,828). LC
are supporting accounts payables already recognised in statement of
financial position. There have been no guarantees provided or
received for any related party receivables or payables. BG are
treated as contingent liabilities until such time it becomes
probable that the Company will be required to make a payment under
the guarantee.
|
|
|
|
|
|
|
33
|
Financial risk management objectives and
policies
|
|
|
|
The Group's principal financial
liabilities, comprises of loans and borrowings, trade and other
payables, and other current liabilities. The main purpose of these
financial liabilities is to raise finance for the Group's
operations. The Group has loans and receivables, trade and other
receivables, and cash and short-term deposits that arise directly
from its operations. The Group also hold investments designated
financial assets measured at FVPL categories.
The Group is exposed to market
risk, credit risk and liquidity risk.
The Group's senior management
oversees the management of these risks. The Group's senior
management advises on financial risks and the appropriate financial
risk governance framework for the Group.
The Board of Directors reviews and
agrees policies for managing each of these risks which are
summarised below:
Market risk
Market risk is the risk that the
fair values of future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market prices
comprise three types of risk: interest rate risk, currency risk and
other price risk, such as equity risk. Financial instruments
affected by market risk include loans and borrowings, deposits,
financial assets measured at FVPL.
The sensitivity analyses in the
following sections relate to the position as at 31 March 2024 and
31 March 2023.
The following assumptions have
been made in calculating the sensitivity analyses:
(i) The sensitivity of
the statement of comprehensive income is the effect of the assumed
changes in interest rates on the net interest income for one year,
based on the average rate of borrowings held during the year ended
31 March 2024, all other variables being held constant. These
changes are considered to be reasonably possible based on
observation of current market conditions.
Interest rate risk
Interest rate risk is the risk
that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market interest rates. The
Group's exposure to the risk of changes in market interest rates
relates primarily to the Group's long-term debt obligations with
average interest rates.
At 31 March 2024 and 31 March
2023, the Group had no interest rate derivatives.
The calculations are based on a
change in the average market interest rate for each period, and the
financial instruments held at each reporting date that are
sensitive to changes in interest rates. All other variables are
held constant. If interest rates increase or decrease by 100 basis
points with all other variables being constant, the Group's profit
after tax for the year ended 31 March 2024 would decrease or
increase by £ 236,288 (2023: £ 944,115).
Foreign currency risk
Foreign currency risk is the risk
that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in foreign exchange rate. The
Group's presentation currency is the Great Britain £. A majority of
our assets are located in India where the Indian rupee is the
functional currency for our subsidiaries. Currency exposures also
exist in the nature of capital expenditure and services denominated
in currencies other than the Indian rupee.
The Group's exposure to foreign
currency arises where a Group company holds monetary assets and
liabilities denominated in a currency different to the functional
currency of that entity:
|
|
|
|
|
As at 31 March
2024
|
As at 31 March
2023
|
|
|
|
Currency
|
Financial
assets
|
Financial
liabilities
|
Currency
|
Financial
assets
|
|
|
United States Dollar
(USD)
|
-
|
5,54,92,762
|
United
States Dollar (USD)
|
-
|
|
|
|
|
|
|
As at 31 March
2024
|
As at 31 March
2023
|
|
|
Currency
|
Closing Rate
(INR/USD)
|
Effect of 10% strengthening
in USD against INR - Translated to GBP
|
Currency
|
Closing Rate
(INR/USD)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |