Great E. Energy Corp (GEEC) - Half Yearly Report RNS Number : 6997P Great Eastern Energy Corp Ltd 29 October 2012 29 October 2012 Great Eastern Energy Corporation Limited ("Great Eastern" or "the Company") Interim Results For the six months ended 30 September 2012 Great Eastern Energy Corporation Limited (LSE: GEEC), the fully integrated, leading Indian Coal Bed Methane (CBM) company,is pleased to announce its Interim Results for the six months ended 30 September 2012. Highlights Financials: · Total revenue increased by 29% to US$ 14.71m (Six month period year ended 30 September 2011: US$ 11.42m) · EBITDA increased by 48% to US$ 9.99m (Six month period ended 30 September 2011: US$ 6.77m) · PAT [pre MTM*] increased by 165% to US$ 5.73m (Six month period ended 30 September 2011: [pre MTM*] of US$ 2.16m) · PAT [after MTM*] US$ 4.03m (Six month period ended 30 September 2011: loss [after MTM*] of US$ 4.92m) · On a constant currency basis total revenue has increased 56% to Rs. 805m (Six month period ended 30 September 2011: Rs. 517m) · The Company has a long term debt of US$ 94.94m as at 30 September 2012 * MTM (Mark to Market) is on account of the restatement of the foreign currency loans and derivatives Upstream: Raniganj (South) Block: · Production increased to 12.5 mmscfd, up 40% from May 2012 and 50% from November 2011 · A total of 132 wells drilled; including 33 deviated wells successfully drilled · Since November 2011 fracced 41 new wells and 8 existing wells (where previously less seams were fracced) · Total of 108 wells dewatering / producing gas, a 59% increase over the previous year · 11 deviated wells producing gas Mannargudi Block: · Environmental clearance received from Ministry of Environment and Forest · Final approvals expected within this calendar year from the State Government Downstream: · Great Eastern continues to supply to its existing customer base while adding further new industrial customers · 38.1mmscfd gas under contract / MOU, up 11% from November 2011 · The Company has sufficient contracts in hand to meet its projected production targets · Further discussions underway with major new industrial customers Outlook · Further production increase expected at Raniganj (South) Block Exit Production Range (mmscfd) 31 Dec 12 14.6 - 16.2 30 Jun 13 21.7 - 24.1 · Work to commence on Mannargudi Block once expected approvals received · Work consists of 30 pilot production wells and 50 core holes · 168 wells planned to be drilled over the next five years in the Raniganj (South) Block · Pricing environment remains stable Prashant Modi, President and COO of Great Eastern, said: "We have continued to make excellent progress in the period, delivering significant growth in production, revenue and profits, and have every confidence in meeting market expectations for the full year. We will continue to drive our production ramp-up in 2012, with a second rig deployed at Raniganj (South) block and best in class technology being used to execute fracturing on schedule. The substantial reserves upgrade we made in June 2012 reaffirms once again the recoverability of gas from the Raniganj (South) Block. We have now received Environmental Clearance for the Mannargudi Block from the Ministry of Environment and Forest, and we are in advanced discussions with the Tamil Nadu Government to receive the required approval for the Consent to Establish. We expect to commence work before the end of the year. The supply/demand balance for gas in India continues to provide a very attractive opportunity, which is set to continue for many years to come. Based as we are in the heart of West Bengal's large and growing industrial centre, with an outstanding resource base and the infrastructure fully in place to allow us to translate production growth directly into sales, we are ideally positioned to take advantage of this demand and deliver on our significant growth potential." A presentation for analysts will be held at 9 am on 29 October 2012 at the London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS. For further information please contact: Great Eastern Energy Yogendra Kr. Modi Chairman & CEO +44 (0)20 7337 1516 Prashant Modi President & COO Arden Partners plc Richard Day +44 (0)20 7614 5917 Goldman Sachs International James Anderson +44 (0) 20 7774 1000 M: Communications Ann-marie Wilkinson +44 (0) 20 7920 2330 Andrew Benbow Chairman's Statement Financials In the first six months of FY 2012-13 Great Eastern made material progress across the business, delivering significant growth in production, revenue, and profit. The increase in revenue and profit was as a result of the significant uplift in gas production and corresponding sales. With existing gas sales contracts and MOUs in place, any increase in production is immediately reflected in enhanced revenue, which in turn falls through to growth in cash flow. Total revenue increased by 29%, compared to the corresponding period last year, to US$ 14.71m, while EBITDA increased by 48% to US$ 9.99m. On a constant currency basis total revenue has increased 56% to Rs 805m. At the PAT level, pre MTM (Mark to Market) the company has made a significant profit of US$ 5.73m as compared to pre MTM profit of US$ 2.16m in the corresponding period last year, an increase of 165%. MTM is on account of the restatement of the foreign currency loans and derivatives. The Company has a long term debt of US$ 94.94m as at 30 September 2012, with various leading banks. With increasing cash flows being generated, the company has negotiated to arrange further debt facilities of Rs. 2.45 billion (approximately US$ 46m) which has been tied-up and the consortium documentation is in process. The company has already drawn US$ 7m after entering into interim documentation with two banks. The supply and demand dynamic for Indian gas, and the pricing environment, remains extremely attractive and is likely to remain so for some years to come. Having seen the benefit of considerable investment in asset and infrastructure development over the years, Great Eastern is now a significantly de-risked and profitable business. These results confirm that we are at the start of a sustained period of visible and profitable growth as we ramp up production to its full potential, as well as developing additional resources. Reserves, Drilling & Production In June we announced a significant increase in our reserve numbers, as provided by independent reserve engineers Advance Resources International (ARI). There has been an increase of 18% in Original-Gas-In-Place (OGIP) to 2.35 TCF from 2 TCF and an increase of 38% in gross Proven, Probable and Possible reserves (3P) from September 2011, and 466% from November 2009 at Raniganj (South) Block. We continue to make progress in production ramp-up. A total of 132 wells have now been drilled at our world-class Raniganj (South) Block, with a total of 108 wells dewatering and producing gas, a 59% increase over the corresponding period of the last year. Since November 2011 we have fracced a further 41 wells and 8 existing wells (where previously less seams were fracced) which puts us on track to achieve our ongoing target of fraccing 40 wells per year. The commencement of drilling deviated wells from a single well site and the drilling of multiple wells from the same location will also accelerate production, with increased time efficiency and faster completions. To date 33 deviated wells have been drilled. Sales, Marketing, & Distribution The Company has 38.1 mmscfd gas under contract / MOU, up 11% from November 2011. The pricing environment remains stable. Great Eastern is well placed to be the supplier of choice for gas resources in the highly industrialised area of West Bengal, where demand is both substantial and growing. Our position as supplier of choice to our local customers is underpinned by our fully-functioning infrastructure, including our pipeline which runs through the key industrial areas. Mannargudi CBM Block The Mannargudi Block covers an effective area of 667 sq. km. and is located in the southern part of the country. The Company signed a CBM contract for the Mannargudi block with the Government of India on 29 July 2010, and has signed the Petroleum Exploration License with the Government of Tamil Nadu. The Company has received Environment Clearance and expects to receive the Consent to Establish from the Government of Tamil Nadu before the end of 2012. Work will start soon thereafter which will consist of 30 pilot production wells and 50 core holes. CSR The Company has added value not only in economic terms, but also through improving the quality of life for people in the community from its operational area and surroundings. Great Eastern has contributed towards improving the environment in this area through substitution of polluting fuels with the use of clean energy. We also sponsor a number of medical camps, blood donation camps, sporting activities, and community health initiatives in the region. Great Eastern views itself as an integral part of the community in which it works, with the business designed to not only create value for the company but also to make a positive contribution to the sustainable development of the local area. I would like to thank our management team and all personnel for their ongoing contribution to our continuing success. Outlook We are well placed to build on the success of the first six months of FY 2012-13. We will continue to drive production growth in the Raniganj (South) Block, and project execution will be facilitated by the second rig and best-of-breed fracturing technology. We have the infrastructure in place to meet the needs of the multiple large industrial customers in the region, and consequently each increase in production feeds directly through to revenue. We look forward to commencing work at the Mannargudi Block on the basis of receiving the expected approvals. Looking further ahead we have an exciting drilling schedule with some 168 wells planned to be drilled over the next five years on the Raniganj (South) block alone. We are confident that our consistent execution in growing our production will continue to deliver value to our shareholders. Independent Auditors' Report on review of condensed interim financial information To the Board of Directors of Great Eastern Energy Corporation limited Introduction We have reviewed the accompanying condensed statement of financial position of Great Eastern Energy Corporation Limited as at 30 September 2012, the condensed income statement, the condensed statement of comprehensive income, changes in equity and cash flows for the six months period then ended, and notes to the interim financial information ("the condensed interim financial information"). Management is responsible for the preparation and presentation of these condensed interim financial information in accordance with IAS 34 Interim Financial Reporting. Our responsibility is to express a conclusion on this condensed interim financial information based on our review. Scope of review We conducted our review in accordance with the International Standard on Review Engagement 2410 Review of Interim Financial Information performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information as at and for the period ended 30 September 2012 are not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting. KPMG Date: 27 October 2012 Place: Gurgaon Great Eastern Energy Corporation Limited Condensed interim financial statements For the six months ended 30 September 2012 Great Eastern Energy Corporation Limited Condensed statement of financial position (All amounts in US dollars unless otherwise stated) As at Notes 30 September 2012 31 March 2012 (Unaudited) (Audited) ASSETS Non-current assets Property, plant 7 107,825,204 99,273,933 and equipment Capital 8 71,928,930 67,657,015 work-in-progress Intangible 9 323,755 assets 361,411 Intangible under 10 280,418 development 189,682 Available for 190 sale-financial 195 assets Prepayments 513,773 148,799 Trade and other 76,219 receivables 68,151 Other assets 257,707 319,177 Total 181,206,196 168,018,363 non-current assets Current assets Trade and other 1,821,819 1,764,440 receivables Other current 91,256 assets 70,549 Prepayments 73,368 284,913 Current tax 355,047 assets 345,490 Restricted 3,750,593 4,302,704 deposits with banks Deposits with 584,311 1,521,160 banks Cash and cash 343,688 1,514,854 equivalents Total current 7,020,082 9,804,110 assets Total assets 188,226,278 177,822,473 Equity Share capital 13,306,007 13,306,007 Share premium 91,006,858 91,006,858 Reserves (9,269,946) (7,270,546) Retained (18,789,565) (22,824,341) earnings Total equity 76,253,354 74,217,978 attributable to owners of the Company Liabilities Loans and 13 78,488,048 78,616,244 borrowings Employee 571,433 benefits 671,356 Employee share 14 131,048 based payment 146,286 liability Derivative 20 4,454,339 3,410,694 liabilities Provisions 16 195,360 185,013 Total 83,840,228 83,029,593 non-current liabilities Loans and 13 16,461,414 10,523,792 borrowings Trade and other 10,548,148 8,335,949 payables Employee benefit 240,697 liability 75,937 Employee share 14 based payment - 27,333 liability Other current 557,044 liabilities 860,351 Derivative 20 325,393 liabilities 751,540 Total current 28,132,696 20,574,902 liabilities Total 111,972,924 103,604,495 liabilities Total equity and 188,226,278 177,822,473 liabilities The accompanying notes form an integral part of the condensed interim financial statements On behalf of the Board of Directors Yogendra Kumar Modi Kashi Nath Memani Chairman & Chief Executive Officer Director Place: Gurgaon Date: 27 October 2012 Great Eastern Energy Corporation Limited Condensed income statement (All amounts in US dollars unless otherwise stated) For the six months ended 30 September Notes 2012 2011 (Unaudited) (Unaudited) Revenue - Sale of gas 14,387,378 10,833,419 - Other 67,135 operating 273,068 revenue Other income 3,578 239,796 14,458,091 11,346,283 Stores and (654,965) consumables (599,453) Employee (952,950) benefit (1,124,327) expenses Depletion, (1,475,003) depreciation and (1,399,440) amortisation Other operating (3,110,289) expenses (3,051,661) Results from 8,264,884 operating 5,171,402 activities Finance income -Interest and 256,440 other finance 78,019 income Finance expenses - Exchange fluctuation loss (1,708,072) (7,074,995) and change in 20 fair value of derivative instruments - Other (4,489,547) finance (2,781,475) (3,091,346) (10,166,341) expenses Net finance (4,233,107) costs (10,088,322) Profit/(loss) 4,031,777 before tax (4,916,920) Income tax - expense - Profit/(loss) 4,031,777 for the period (4,916,920) Earnings/(loss) per share Basic 21 0.069 earnings/(loss) (0.085) per share (USD) Diluted 0.069 earnings/(loss) (0.085) per share (USD) The accompanying notes form an integral part of the condensed interim financial statements On behalf of the Board of Directors Yogendra Kumar Modi Kashi Nath Memani Chairman & Chief Executive Officer Director Place: Gurgaon Date: 27 October 2012 Great Eastern Energy Corporation Limited Condensed statement of comprehensive income (All amounts in US dollars unless otherwise stated) For the six months ended 30 September 2012 2011 (Unaudited) (Unaudited) Profit/(loss) for the 4,031,777 (4,916,920) period Other comprehensive income Net change in fair value - (13,465) of available-for-sale financial assets reclassified to profit or loss Foreign currency (2,012,120) (6,009,081) translation adjustment Total other (2,012,120) (6,022,546) comprehensive income Tax expense - - Total comprehensive income 2,019,657 (10,939,466) for the period Profit/(loss) attributable to: Owners of the Company 4,031,777 (4,916,920) Total comprehensive income/(loss) attributable to: Owners of the Company 2,019,657 (10,939,466) The accompanying notes form an integral part of the condensed interim financial statements On behalf of the Board of Directors Yogendra Kumar Modi Kashi Nath Memani Chairman & Chief Executive Officer Director Place: Gurgaon Date: 27 October 2012 Great Eastern Energy Corporation Limited Condensed statement of changes in equity (All amounts in US dollars unless otherwise stated) For the six months ended 30 September Attributable to owners of the Company 2011 (Unaudited) Share capital Share premium* Retained earnings Foreign currency Fair value Share based Total equity translation reserve reserve payment reserve Balance as at l 13,021,808 78,502,121 (20,077,651) 1,270,285 13,465 341,156 73,071,184 April 2011 Total comprehensive income for the period Loss for the (4,916,920) (4,916,920) period - - - - - Other comprehensive income Foreign currency (6,009,081) (6,009,081) translation - - - - - adjustment Net changes in fair value of available-for-sale financial assets transferred to profit or loss - - - - (13,465) - (13,465) Total other (6,009,081) (13,465) (6,022,546) comprehensive - - - - income Total (4,916,920) (6,009,081) (13,465) (10,939,466) comprehensive - - - income for the period Transactions with owners, recorded directly in equity Share-based 57,884 payment - - - - - 57,884 transactions Transfer to share-based payment liability on account of modification (refer to note 14) - - - - - (226,145) (226,145) Options forfeited 16,548 (16,548) - during the period - - - - Balance as at 30 13,021,808 78,502,121 (24,978,023) (4,738,796) 156,347 61,963,457 September 2011 - Great Eastern Energy Corporation Limited Condensed statement of changes in equity (All amounts in US dollars unless otherwise stated) For the six-months ended 30 Attributable to owners of the Company September 2012 (Unaudited) Share capital Share Retained Foreign currency Fair value Share based Total equity premium* Earnings translation reserve payment reserve reserve Balance as at 13,306,007 91,006,858 (22,824,341) (7,433,942) 163,396 74,217,978 l April 2012 - Total comprehensive income for the period Profit for - - 4,031,777 - 4,031,777 the period - - Other comprehensive income Foreign - - - (2,012,120) (2,012,120) currency - - translation adjustment Total other - - - (2,012,120) (2,012,120) comprehensive - - income Total - - 4,031,777 (2,012,120) 2,019,657 comprehensive - - income for the period Transactions with owners, recorded directly in equity Share-based - - - - 15,719 payment - 15,719 transactions Options - - 2,277 - forfeited - (2,277) - during the period Options - - 722 - exercised - (722) - during the period Balance as at 13,306,007 91,006,858 (18,789,565) (9,446,062) 176,116 76,253,354 30 September - 2012 *Share premium represents the premium paid by the shareholders on issue of shares and is net off equity transaction costs. Under the Indian Companies Act 1956, such a reserve has a restricted usage. The accompanying notes form an integral part of the condensed interim financial statements On behalf of Board of Directors Yogendra Kumar Modi Kashi Nath Memani Chairman & Chief Executive Officer Director Place: Gurgaon Date: 27 October 2012 Great Eastern Energy Corporation Limited Condensed statement of cash flows (All amounts in US dollars unless otherwise stated) For the six months ended 30 September 2012 2011 (Unaudited) (Unaudited) A. Cash flow from operating activities Profit/(Loss) after tax 4,031,777 (4,916,920) Add: tax expense - - Profit/(Loss) before tax 4,031,777 (4,916,920) Adjustments for:- Provisions/liabilities written back (234,208) - Net finance cost 2,537,375 9,973,475 Depreciation/amortisation/depletion 1,475,003 1,399,440 Share based payment expense (20,381) (15,526) Changes in: Trade and other receivables (81,235) (399,385) Prepayments (18,915) 170,022 Trade and other payables 1,035,295 1,777,807 Net cash from operating activities 8,958,919 7,754,705 B. Cash flow from investing activities Purchase of property, plant and (14,523,536) (17,416,749) equipment/capital work in progress/intangible assets Fixed deposits matured/(purchased) 1,269,628 9,831,319 during the period Proceeds from sale of 177,975 available-for-sale financial assets - Interest received 293,357 808,996 Income tax paid (18,921) (46,937) Net cash used in investing (12,979,472) (6,645,396) activities C. Cash flow from financing activities Proceeds from borrowings 9,121,388 14,186,888 Repayment of long term borrowings (2,047,840) (2,357,300) Interest paid (4,137,900) (4,091,646) Net cash from financing activities 2,935,648 7,737,942 Net (decrease)/increase in cash and (1,084,905) 8,847,251 cash equivalents (A+B+C) Cash and cash equivalents at 1 1,514,854 514,780 April Effect of exchange rate fluctuations (86,261) (708,618) on cash and cash equivalents Cash and cash equivalents at 30 343,688 8,653,413 September The accompanying notes form an integral part of the condensed interim financial statements On behalf of the Board of Directors Yogendra Kumar Modi Kashi Nath Memani Chairman & Chief Executive Officer Director Place: Gurgaon Date: 27 October 2012 Great Eastern Energy Corporation Limited (All amounts in US dollars unless otherwise stated) Notes to condensed interim financial statements 1. Organisation and nature of operations Great Eastern Energy Corporation Limited ('GEECL' or 'the Company') is a public limited company incorporated in India with its registered office at M-10, ADDA Industrial Area, Asansol-713305, West Bengal, India. GEECL's shares were listed as Global Depository Receipts in the Alternate Investment Market, London, upto 27 May 2010. The Company made a publication of its prospectus in relation to the introduction of its Global Depositary Receipts ('GDRs') to the standard list on the official list of the UK Listing Authority (the 'Official List') and admission to trading on the London Stock Exchange Plc's Main Market for listed securities (the 'Main Market'). Pursuant to the admission of its GDRs to the standard list on the official list and commencement of trading in the GDRs on the main market on 28 May 2010, trading of the Company's GDRs on AIM has been cancelled. The Company was incorporated in 1992 to explore, develop, distribute and market Coal Bed Methane gas or CBM gas in India. GEECL originally entered into a license agreement in December 1993 with Coal India Limited (CIL) for exploration and development of CBM over an area of approximately 210 Sq. km (approximately 52,000 acres) in the Raniganj coalfields of West Bengal (the block). Following the transfer of CBM administration in India from the Ministry of Coal to the Ministry of Petroleum and Natural Gas (MoPNG), the Company entered into Production Sharing Contract (PSC) for CBM gas on 31 May 2001 with the Government of India for the block. The PSC has been effective from 9 November 2001 as a result of the granting by Government of West Bengal of the Petroleum Exploration License on the same date and provides for a five year initial assessment and market development phase, followed by a five year development phase and then a twenty-five year production phase, extendable with the approval of the Government of India (GOI). Besides this, during the previous year, the Company was awarded with Mannargudi block located in Tamil Nadu under CBM IV round for which the Production Sharing Contract was signed with the Government of India on 29 July 2010. In this regard, the Company has applied for issuing two Petroleum Exploration License (PEL) on September 16, 2010 to the Hon'ble Chief Secretary, Government of Tamil Nadu. One of the PEL has been granted on 13 September 2011. Currently, the Company is carrying out exploration activities in this block. The Company does not have any subsidiary and accordingly, does not require any consolidated financial statements. Since the Company does not have any investments in associates and joint ventures also, hence these financial statements are individual financial statements. The financial statements of the Company as at and for the year ended 31 March 2012 are available upon request from the Company's registered office at M-10, ADDA Industrial Area, Asansol-713305, West Bengal, India, or at www.geecl.com. 2. Statement of compliance These condensed interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting. These condensed interim financial statements do not include all the information required for full annual financial statements and should be read in conjunction with the financial statements of the Company as at and for the year ended 31 March 2012. These condensed interim financial statements have been authorised for issue by the Board of Directors in its meeting held on 27 October 2012. 3. Significant accounting policies The accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its financial statements as at and for the year ended 31 March 2012. 4. Estimates The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these condensed interim financial statements, the significant judgements made by the management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those applied to the financial statements as at and for the year ended 31 March 2012 5. Financial risk management The Company's financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended 31 March 2012. 6. Segment reporting Chief Operating Decision Maker (CODM) reviews the business as one operating segment, being the extraction and sale of CBM gas. Hence, no separate segment information has been furnished herewith. 7. a) Property, plant and equipment During the six-month period ended 30 September 2012, the Company has acquired assets with cost (including capitalized borrowing cost) of USD 12,619,227 (30 September 2011 : USD 14,392,426) Movements in property, plant and equipment are as follows: For the six months ended 30 September 2012 2011 Opening balance as at 1 April 99,273,933 98,725,859 Additions 12,619,227 14,392,426 Disposals/adjustments - - Depreciation/amortisation for the (1,594,214) (1,615,064) period Effect of movements in foreign (2,473,742) (9,594,106) exchange rates Closing balance as at 30 September 107,825,204 101,909,115 Well capitalisation During the six months period ended 30 September 2012, the Company has capitalized 12 wells (30 September 2011: 7 wells). All costs involved in drilling, cementing, fracturing and drilling of exploratory core holes are initially considered as Capital work-in-progress till the time these are ready for commercial use when they are transferred to producing properties. Depletion: Commercially producing wells are depleted using unit of production method, based on related proved developed reserves. Proved developed reserves of gas per well are technically re-assessed, 'in house', normally at the end of each reporting period, based on technical data available. b) Capital commitments As at 30 September 2012 31 March 2012 Estimated amount of contracts remaining to be executed on capital account and not provided for:- - For land 142,764 128,238 - For others 10,459,430 8,490,824 10,602,193 8,619,062 Further, the Company has continuing commitments towards minimum work programme in terms of production sharing contract for Mannargudi block. Such commitments aggregate USD 20,610,834 as at 30 September 2012 (31 March 2012: USD 20,742,274). 8. Capital work in progress During the six-month period ended 30 September 2012, the Company has made additions to Capital work in progress, (including borrowing cost) of USD 15,433,201 (30 September 2011: USD 11,550,063) Movement in Capital work in progress is as follows- For the six months ended 30 September 2012 2011 Opening balance 67,657,015 43,847,479 Additions during the year 15,433,201 11,550,063 Capitalization (7,442,140) (9,417,093) Effect of movement in foreign (4,143,538) exchange rates (1,744,193) Closing balance 71,928,930 43,811,864 9. Intangible assets Intangible assets represent gas exploration right, computer software and other intangibles. During the six months period ended 30 September 2012, the Company has acquired intangible assets of USD Nil (30 September 2011: USD 17,676) For the six months ended 30 September 2012 2011 Opening Balance 361,411 212,344 Additions - 17,676 Disposals/adjustments - - Depreciation/amortisation for the (26,085) (40,069) period Effect of movements in foreign (11,571) (16,894) exchange rates Closing balance 323,755 173,057 10. Intangible under development During the six months period ended 30 September 2012, the Company has made additions to intangible under development of USD 92,691 (30 September 2011: USD 64,473). For the six months ended 30 September 2012 2011 Opening Balance 189,682 73,954 Additions 92,691 64,473 Effect of movements in (1,955) foreign exchange rates (11,305) Closing balance 280,418 127,122 11. Borrowing cost The capitalization rate used to determine the borrowing cost eligible for capitalization in respect of general purpose borrowings is 13.67% p.a for the six months period ended 30 September 2012 ( 30 September 2011: 13.21% p.a) and 6.82% (30 September 2011: 8.43%) in respect of specific purpose borrowings. During the six months period ended 30 September 2012, the Company has allocated borrowing cost of USD 2,103,101 (30 September 2011: USD 2,323,006) to fixed assets/capital work in progress, being directly attributable to the acquisition or construction of qualifying assets. The balance borrowing cost amounting to USD 2,781,475 (30 September 2011: USD 3,091,346) has been charged to income statement. Borrowing cost is reduced by USD 41,987 (30 September 2011: USD 788,326) in respect of income on temporary deployment of borrowings by the Company. 12. Income tax There is no current tax liability in view of losses for the previous periods. Deferred tax asset has not been recognized in respect of carried forward tax losses and unabsorbed depreciation because sufficient taxable temporary differences are not available and the probable taxable profits may not be available against which the benefits can be utilised. 13. Loans and borrowings Currency Interest rate Face Carrying amount Year of value maturity USD Balance as at 1 89,140,036 April 2012 New issues Secured rupee INR Base + 3% 4,110,340 4,020,461 2020 loan [refer note (a)] External EUR Margin 3.90% 5,462,623 5,255,703 2018 commerical + 6 months borrowings Euribor [refer note (c)] Repayments Car loan [refer INR 9.72% (22,368) (22,368) note (d)] Secured rupee INR PLR +/- 0.25% (1,638,982) (1,638,982) loans [refer note and base rate (b)] + 3.5% Secured foreign USD 6 months (298,438) (298,438) currency Libor + loans[refer note 650-1000 bps (b)] Other movements Interest accrued INR 122,711 Amortisation of INR 150,189 loan origination cost Conversion of INR USD 14,891,685 loan to USD loan Conversion of USD INR (15,891,685) loan to INR loan Effect of movements in foreign exchange (779,850) rates Balance as at 30 94,949,462 September 2012 Current 16,461,414 Non-current 78,488,048 Total 94,949,462 External commerical borrowing issued during the period Proceeds from external commercial 5,462,623 borrowings Less:- (206,920) transaction cost Net proceeds 5,255,703 Secured rupee loan issued during the period Proceeds from secured 4,110,340 rupee loan Less:- (89,879) transaction cost Net proceeds 4,020,461 Currency Interest rate Face value Carrying Year of amount maturity USD Balance as The story has been at 1 April truncated, [TRUNCATED]
Great E. Energy Corp GEEC Half Yearly Report
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