Released: 29/07/2009
com:20090729:Rnsc4440W
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RNS Number : 4440W
Infrastructure India plc
29 July 2009
INFRASTRUCTURE INDIA PLC
CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD
ENDED 31 March 2009
Infrastructure India plc, the closed-ended investment fund focusing on India's
rapidly growing energy and transport sectors, is pleased to announce its results
for the period ended 31 March 2009.
Highlights
. Admitted to the Official List in June 2008, raising £36.7 million
before expenses
. Completion of two investments: one in the power sector, the other in
the transport sector
. Deployed £24.5million (75.9%) of the £32.3 million net proceeds
available for investment
. Portfolio valuations on both investments have increased
. Profit before and after tax: £3.18 million
. Basic earnings per share: 8.67p
. Pipeline of opportunities across India with selected blue-chip
counterparties remains strong
. Continues to trade in line with its stated objective: to provide
Shareholders with both capital growth and income by investing in assets in the
Indian infrastructure sector, focusing on assets and projects related to energy
and transport
Commenting on the results, Rupert Cottrell, Chairman of Infrastructure India
plc, said:
"During the period under review there have been unprecedented turbulent market
conditions, however, I am pleased by the ability with which we have thus far
navigated ourselves through these difficult times. India's economy has
inevitably been affected by the global economic crisis yet it has fared far
better than most other economies and we are confident that this performance will
continue bolstered by strong Indian election results. I am delighted by the
valuation performance of our two investments and the expertise and experience of
our Investment Advisor, which coupled with their strong local relationships,
stands Infrastructure India in a solid position."
- Ends -
For further information please contact:
Infrastructure India plc
Rupert Cottrell Via Redleaf Communications
Bloomsbury Asset Management Advisors (BAMA)
Gary Neville 07867 906377
Akur Partners 020 7955 1514
Andrew Dawber / Tom Frost
Singer Capital Markets 020 3205 7500
Jos Trusted
Redleaf Communications 020 7566 6700
Emma Kane / Samantha Robbins / Henry Columbine iif@redleafpr.com
Chairman's Statement
Introduction
I am pleased to report the results for the period from 18 March 2008 (the date
of incorporation) to 31 March 2009. Since Infrastructure India plc was admitted
to the Official List in June 2008 (the "IPO"), it has made two investments
totalling £24.5 million, which represents around 75.9% of the net proceeds
raised at the IPO.
The Company remains focused on investing in assets which it believes have the
potential to generate substantial capital growth and income - particularly in
the energy and transport sectors. Despite global economic conditions, the
Company and its Investment Advisor remain of the belief that Indian
infrastructure continues to offer stable and long term growth.
Operational Review
Since June 2008, the Company has made two investments in the energy and
transport sectors respectively. The first investment, undertaken via the
Company's Mauritian subsidiary, Power Infrastructure India, totalled £13.2
million (Rs 1,100 million) in Shree Maheshwar Hydel Power Corporation Limited
("SMHPCL") on 9 June 2008 in return for a 6.23% stake post all dilution effects.
SMHPCL was specifically established to own and develop a 400MW run-of-the-river
hydroelectric project situated on the Narmada river in Madhya Pradesh, Central
India. The project is expected to commence operations in Q1 2010 when the first
of ten 40MW turbines will be installed, with the facility expected to be fully
operational in Q2 2010. The asset is at an advanced stage of construction with
over 88% of the civil works completed to date.
Our second acquisition, being a 26% shareholding in a toll road in Madhya
Pradesh, was undertaken via the Company's Mauritian subsidiary, Roads
Infrastructure India, and was for a consideration of £11.3 million (Rs 960
million). This acquisition represents the Company's first investment in India's
transportation sector. The road will start partial tolling in August 2009, with
full tolling expected to commence upon completion in 2010.
Financial Results
We are reporting a profit for the period of £3.18 million, which equates to
earnings of 8.67p per share. This is due to the significant uplift in the
valuation of the Company's investments.
Assuming that the SMHPCL investment is held to maturity and in line with the
Company's stated valuation methodology the value derived for this holding at 31
March 2009 is £21.0 million compared to the £13.2 million invested on 9 June
2008. If a single "construction period" discount rate is applied to the expected
cash flows then the value of the SMHPCL investment derived as at 31 March 2009
is approximately £14.4 million compared to the £13.2 million as invested on 9
June 2008. On the basis that the equity in the road project in Madhya Pradesh is
held to maturity and in accordance with the Company's stated valuation
methodology, a portfolio value for this investment as at 31 March 2009 is £28.2
million compared to the £11.3 million as invested on 30 September 2008. If a
single "construction period" discount rate is applied to the expected cash flows
then the value of this investment as at 31 March 2009 is £17.6 million compared
to the £11.3 million as invested on 30 September 2008.
Investment Pipeline
Our Investment Advisor, Bloomsbury Asset Management Advisors, ("BAMA") has
managed the completion of two investments. Through their relationship with
Cornerstone Advisors, a subcontractor which handles some aspects of origination
and management services, BAMA continues to develop a pipeline of opportunities
across India with selected blue-chip counterparties in sectors that are core to
the Company's strategy.
Further to the announcement on 16 March 2009 relating to the proposed
acquisition of BAMA, the Directors continue to keep the proposal under review
and will update the Company's shareholders in due course on progress to resolve
the matter.
Outlook
During the period, there have been unprecedented turbulent market conditions,
however, I am pleased by the ability with which we have thus far navigated
ourselves through these difficult times. India's economy has inevitably been
affected by the global economic crisis yet it has fared far better than most
other economies and we are confident that this performance will continue. I am
delighted by the valuation performance in our two investments and the expertise
and experience of our Investment Advisor, coupled with their strong local
relationships, stands Infrastructure India in a solid position.
India remains a popular choice for new funds focusing on the development of
infrastructure in India. Competition is increasing (especially from unlisted
funds allied to local institutional players with government backing) and the
Company will need to both be active locally and in a position to follow through
with new commitments if it is to benefit from the renewed local momentum in its
chosen sectors. The outlook is positive and there are good quality investment
opportunities in both the primary and secondary markets.
Finally, I would like to take this opportunity to convey my thanks and
appreciation to the board and advisors for their dedicated work and loyalty
during the past year.
Rupert Cottrell
Chairman
28 July 2009
Investment Advisor Review
Bloomsbury Asset Management Advisors ("BAMA"), a Mauritius incorporated entity,
is the Investment Advisor to Infrastructure India plc ("IIP"). BAMA assists the
Company in value creation through originating and executing investments; and
once an investment is made BAMA provides a portfolio management function to
ensure the value of the Company's interests in the investment is protected. BAMA
has managed the completion of two investments: one in the power sector and the
other in the transport sector; thus deploying £24.5million (75.9%) of the £32.3
million net proceeds available for investment following the IPO in June 2008.
Through its relationship with Cornerstone Advisors, BAMA continues to develop a
pipeline of opportunities across India with selected blue-chip counterparties in
sectors that are core to the Company's strategy.
Economic background and market context
During the period, the global financial meltdown and consequent economic
recession in developed economies have clearly been a major factor in India's
economic slowdown. The Indian economic growth in 2008-09 decelerated to 6.7% as
compared to an average growth rate of 8.8% in the previous five years (2003-04
to 2007-08). Despite this slowdown in growth investment remained relatively
buoyant, growing at a rate higher than the GDP.
Inflation, after peaking subsequent to the commodity price surge at over 12%,
averaged an estimated 6.2 % in 2008-09. While still the highest average in the
current decade, the rapid decline from Q3 2008 allowed the focus of policy to
shift towards supporting growth, as the Government provided substantial fiscal
expansion in the form of tax relief to boost demand and increased expenditure on
public projects to create employment. In parallel the Reserve Bank of India
announced monetary easing and liquidity enhancing measures to meet the needs of
productive and trade exposed sectors.
The Indian Government is confident in its ability to secure increased growth
from 2009-10, allowing for additional resources to be directed towards enhanced
infrastructure and rural development. The Finance Ministry has set a range of
6.25% to 7.75% for the growth target for 2009-10 and it is the Government's
stated intention to pursue a policy goal of achieving a return to 9% GDP growth
thereafter by promoting a conducive investment scenario.
During the period, the significant gap between Government intentions and
performance in relation to the roads and power sectors has remained a concern,
when only 10 out of 60 Build, Operate and Transfer projects to widen 6,343 km of
highways have been awarded and there was only 2.7% growth in electricity
generation by power utilities registered during 2008-09, well below the targeted
9.1%. However, following the recent Government elections and the approved Budget
2009-10, there are strong indications that the infrastructure related activity
will be fuelled by the string of reforms expected from the newly elected
Congress party-led Government, as opposed to the previous Coalition between the
Left and communist parties historically stalled planned reforms.
As one of the steps forward, the Government has recently introduced a definition
of the "takeout financing" scheme to facilitate incremental lending to
infrastructure projects by empowering the government-run Indian Infrastructure
Finance Company Ltd (IIFCL) to refinance up to 60% of bank loans for PPP
projects in critical sectors over the next 15-18 months. This is to ensure that
infrastructure projects in sectors such as telecommunication, power generation,
airports, ports, roads and railways, do not face financing difficulties arising
from the current downturn. The Government has stated that the IIFCL is now in a
position to support projects involving a total investment of circa £12.7 billion
in infrastructure.
Investment Activity
Shree Maheshwar Hydel power Corporation Limited (SMHPCL)
IIP, via its Mauritius subsidiary Power Infrastructure India, invested a total
of £13.2 million (Rs 1,100 million) in Shree Maheshwar Hydel Power Corporation
Limited ("SMHPCL") on 9 June 2008 in return for a 6.23% stake post all dilution
effects. SMHPCL was specifically established to own and develop a 400MW
run-of-the-river hydroelectric project situated on the Narmada river in Madhya
Pradesh, Central India. Once commissioned it is expected to be one of the
largest privately owned hydroelectric power projects in India. The project is
expected to commence operations in Q1 2010 when the first of ten 40MW turbines
will be installed with the facility expected to be fully operational in Q2 2010.
The asset is at an advanced stage of construction with over 88% of the civil
works completed to date.
The Power Purchase Agreement ("PPA") signed between SMHPCL and the state
government body, The Madhya Pradesh Electricity Board ("MPEB"), obliges MPEB to
take the full electricity production of the plant for a period of 35 years.
The project requires approximately 10,000 people to be relocated from land to be
submerged. The relocation and rehabilitation process, including land
acquisition, is the responsibility of the State and is well underway in
accordance with State and National regulations. Over 90% of the submergence
lands have been acquired or are under offer and more than 50% of the
re-habitation sites have been developed or are under development.
Assuming that the investment is held to maturity and in line with the Company's
stated valuation methodology the value derived for this holding as at 31 March
2009 is £21.0 million compared to the £13.2 million invested on 9 June 2008.
If a single "construction period" discount rate is applied to the expected cash
flows then the value of the SMHPCL investment derived as at 31 March 2009 is
approximately £14.4 million compared to the £13.2 million as invested on
9 June 2008.
Toll Road Central India
On September 30, 2008 IIP completed its second acquisition, being a 26%
shareholding in a toll road in Madhya Pradesh. The transaction was undertaken
through IIP's Mauritian subsidiary, Roads Infrastructure India and was for a
consideration of Rs. 960 million (approximately £11.3 million). This acquisition
represents IIP's first investment in India's transportation sector.
The SPV was awarded the project on a Design Build Finance Operate (DBFO) basis
in August 2007 for a term of 25 years. The toll road project comprises a single
125 km stretch which is being widened from the existing 2 lanes to 4 lanes in
order to reduce congestion experienced on the route and to provide further scope
for traffic growth. The project is currently 13 months into construction and
works to date are ahead of schedule. Presently acquisition of less than 1% of
the land required for the project remains outstanding and is due to be handed
over by the Roads Authority by Q3 2009. The expected date of completion of the
construction works and start of tolling is forecast as April 1, 2010. The SPV
shall have the right to toll the traffic as soon as it receives the Completion
or Provisional Completion Certificate for the project from the Independent
Certifier. Upon completion of the concession period the SPV will hand over the
project highway to the Concession Authority.
Assuming that the equity is held to maturity and in accordance with the
Company's stated valuation methodology, a portfolio value for this investment as
at March 31 2009 is £28.2 million compared to the £11.3 million as invested on
30 September 2008.
If a single "construction period" discount rate is applied to the expected cash
flows then the value of this investment as at March 31st 2009 is £14.4 million
compared to the £11.3 million as invested on 30 September 2008.
Principal risks and uncertainties
Principal risks
The implementation of the Company's investment policy is potentially affected by
a number of risks and uncertainties. A detailed list of the risk factors that
could potentially affect the Company is set out in the Prospectus issued 30 June
2008 to which investors should refer. The Prospectus is available on the
Company's website http://www.iiplc.com/index.html
The principal risks affecting the Company include:
Current operational risks in existing projects Operational risks relating to
investments include: the Group's investee company management teams may be
resistant to proactive shareholder involvement; infrastructure projects may be
affected by cost overruns; infrastructure projects may be affected by the
performance of the Engineering Procurement Construction (EPC) contractors
causing project milestones to be delayed thus prolonging the ability of the
project company to start generating revenues; and the Company will be dependent
on the skills of the project management teams employed in the underlying SPVs.
General Risk Factors
Dependence on key personnel
The Company is highly dependent on the Directors, the senior strategic adviser
(currently Andrew Friend) and also on the investment advisor, Bloomsbury Asset
Management ("the Investment Advisor") to identify, structure and monitor
investments and advise on exit strategies for the investments to be made by the
Group.
No guarantee as to future performance of the Company
There can be no assurance that the Company will be able to achieve strong
returns referred to in the Prospectus or that it will be fully invested at all
times.
The Company's profitability is subject to Group companies' ability to secure
project financing
The Company's growth depends on the successful development and implementation of
the infrastructure projects it invests in, all of which require or may require
equity capital and/or, in some cases, debt in order to achieve returns
acceptable to investors. A long delay or inability to raise financing for the
projects could have a material adverse effect on the business, financial
condition, results of operation and prospects of the Company.
The Group is subject to competition risks and it may be difficult to identify
and secure suitable investments
An increasing number of investors have become active in seeking investment
opportunities with a focus on India, including in the infrastructure sector. The
activity of identifying and securing attractive investments may therefore be
highly competitive and involve a high degree of uncertainty from time to time.
The Group cannot guarantee project performance
There is no guarantee that the Group's investee projects will proceed or perform
as planned, or in accordance with the expected timescale or cost estimate. Delay
to the projects, or failure of the projects to be completed or to operate as
planned could have a material adverse effect on the business, financial
condition, results of operation and prospects of the Company.
Risks related to the group's investments
Project liability risk
The Investment Adviser will carry out due diligence on proposed investments.
There can be no guarantee that the due diligence process will highlight or
eliminate all risks and liabilities (including weaknesses and uncertainties in
local legal and regulatory systems) associated with any project, and the project
may incur, directly or indirectly, unexpected liabilities, such as environmental
problems or operational defects requiring remediation which could have a
material adverse effect on the business, financial condition, results of
operation and prospects of the Company.
Risk factors related to India
Economic policy
The Company's performance and the market price and liquidity of the Ordinary
Shares and Warrants may be affected by changes in exchange rates and controls,
interest rates, government policies, taxation, social and ethnic instability and
other political and economic developments affecting India.
Economy
The performance and the growth of the Company's business are necessarily
dependent on the health of the overall Indian economy. The Indian economy has
shown sustained growth over the last several years. However, the growth in
industrial production in India has been variable. Any slowdown in the Indian
economy, or future volatility of global commodity prices, could have a material
adverse effect on the business, financial condition, results of operation and
prospects of the Company.
Political risks
Future political and economic conditions in India may result in its government
adopting different policies with respect to foreign investment. Any such changes
in policy may affect ownership of assets, taxation, rates of exchange,
environmental protection, labour relations, repatriation of income and return of
capital, with potential adverse effects on the Group's investments.
Financial risk management
The Group's activities expose it to a variety of financial risks: market risk
(including currency risk, market risk and price risk), credit risk and liquidity
risk.
Risk management is carried out by the Board of Directors. The Board identifies
and evaluates financial risks in close co-operation with the Investment
Advisor.
Directors' Report
The Directors have pleasure in presenting their report and financial statements
of the Group for the period from 18 March 2008 (date of incorporation) to 31
March 2009.
Principal activity and incorporation
The Company is a closed-end investment company, incorporated on the 18 March
2008 in the Isle of Man as a public limited company under the 2006 Companies
Act. It was listed on the London Stock Exchange on 30 June 2008.
The Company's investment objective is to provide Shareholders with both capital
growth and income by investing in assets in the Indian infrastructure sector,
with particular focus on assets and projects related to energy and transport.
The consolidated financial statements comprise the results of the Company and
its subsidiaries (together referred to as the "Group").
Results and dividends
The Group's results for the financial period ending 31 March 2009 are set out in
the Consolidated Income Statement on page 10.
A review of the Group's activities are set out in the Chairman's report and
Investment Advisor's report on pages x and x respectively.
The Directors do not recommend the payment of a dividend.
Directors
The Directors of the Company during the period and to date of this report were
as follows:
Date appointed Date resigned
Rupert Cottrell 23 April 2008
Timothy Walker 23 April 2008
Philip Scales 10 April 2008
Prodaman Sarwal 12 May 2008
Hope Street Nominees Limited 18 March 2008 10 April 2008
Directors' interests in the shares of the Company are detailed in note 14.
Company Secretary
The secretary of the Company during the period and to the date of this report
was Philip Scales.
Auditors
The auditors, KPMG Audit LLC, were appointed during the period and being
eligible have expressed their willingness to continue in office.
On behalf of the Board
Philip Scales
Director
28 July 2009
Statement of Directors' Responsibilities in Respect of the Annual Report and the
Financial Statements
The Directors are responsible for preparing the Annual Report and the financial
statements in accordance with applicable law and regulations. In addition, the
Directors have elected to prepare the Group and Parent Company financial
statements in accordance with International Financial Reporting Standards.
The Group and Parent Company financial statements are required to give a true
and fair view of the state of affairs of the Group and Parent Company and of the
profit or loss of the Group for that period.
In preparing these financial statements, the Directors are required to:
* select suitable accounting policies and then apply them consistently;
* make judgements and estimates that are reasonable and prudent;
* state whether International Financial Reporting Standards have been
followed, subject to any material departures disclosed and explained in the
financial
statements; and
* prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Group and Parent Company will continue in
business.
The Directors are responsible for keeping proper accounting records that
disclose with reasonable accuracy at any time the financial position of the
Group and Parent Company and to allow for the preparation of financial
statements. They have general responsibility for taking such steps as are
reasonably open to them to safeguard the assets of the Group and to prevent and
detect fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate
and financial information included on the Company's website. Legislation
governing the preparation and dissemination of financial statements may differ
from one jurisdiction to another.
The Directors confirm that to the best of our knowledge:
* the financial statements, prepared in accordance with International
Financial Reporting Standards, give
a true and fair view of the assets, liabilities, financial position and
profit or loss of the Company; and
* the Directors' Report includes a fair view of the development and
performance of the business and position of the Company, together with a
description of
the principal risks and uncertainties that the Company faces.
On behalf of the Board
Philip Scales
Director
28 July 2009
Corporate Governance Statement
The Combined Code does not directly apply to companies incorporated within the
Isle of Man but the Board of Infrastructure India plc has developed its internal
procedures to be in line with the recommendations of the Combined Code where
appropriate and these are monitored on a regular basis. The Directors will
continue to comply with the relevant requirements of the Combined Code to the
extent that they consider it appropriate having regard to the Company's size and
the nature of its operations. The Board is not aware of any reason that would
cause it to reconsider its current approach adopted throughout the period under
review.
Responsibilities of the Board
The Board of Directors is responsible for the determination of the investment
policy of the Company and for its overall supervision via the investment policy
and objectives that it has set out. The Board is also responsible for the
Company's day-to-day operations; however, since the Board members are all
non-executive, in order to fulfil these obligations, the Board has delegated
operations through arrangements with the Investment Advisor and Administrator.
All the Directors are non-executive and therefore there is no nomination
committee. The Company has not established a remuneration committee as it is
satisfied that any issues can be considered by the Board or the Audit
Committee.
The Board intends to meet formally at least four times each year.
At each Board meeting, the financial performance of the Company is reviewed so
as to ensure the Directors maintain overall control and supervision of the
Company's affairs. The Board also receive a regular investment report from the
Investment Advisor and management accounts from the Administrator. The Board
maintains regular contact with all its service providers and are kept fully
informed of investment and financial controls and any other matters that should
be brought to the attention of the Directors. The Directors also have access
where necessary to independent professional advice at the expense of the
Company.
Audit Committee
The Audit Committee is a sub-committee of the Board and it meets formally at
least twice each year. It makes recommendations to the Board which retains the
right of final decision. The Audit Committee has primary responsibility for
reviewing the financial statements and the accounting policies, principles and
practices underlying them, liaising with the external auditors and reviewing the
effectiveness of internal controls.
The Audit Committee members are Timothy Walker (Chairman), Prodaman Sarwal and
Philip Scales.
The terms of reference of the Audit Committee covers the following:
* The composition of the Committee, quorum and who else attends meetings.
* Appointment and duties of the Chairman.
* Duties in relation to external reporting, including reviews of financial
statements, shareholder communications and other announcements.
* Duties in relation to the external auditors, including appointment/
dismissal, approval of fee and discussion of the audit.
In addition, the Company's Administrator (IOMA Fund and Investment Management
Limited) has a number of internal control functions including a dedicated
Compliance Officer who monitors compliance with all statutory and regulatory
requirements and presents a report to the Board at each meeting.
Report of the Independent Auditors KPMG Audit LLC, to the members of
Infrastructure India plc
We have audited the Group and Parent Company financial statements (the
"financial statements") of Infrastructure India plc for the period from 18 March
2008 (date of incorporation) to 31 March 2009 which comprise the Consolidated
Income Statement, the Consolidated and Parent Company Balance Sheets, the
Consolidated and Parent Company Statements of Changes in Equity, the
Consolidated Cash Flow Statements and the related notes. These financial
statements have been prepared under the accounting policies set out therein.
This report is made solely to the Company's members, as a body. Our audit work
has been undertaken so that we might state to the Company's members those
matters we are required to state to them in an auditor's report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company's members as a
body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and Auditors
The Directors' responsibilities for preparing the Annual Report and the
financial statements in accordance with applicable law and International
Financial Reporting Standards are set out in the Statement of Directors'
Responsibilities on page 7.
Our responsibility is to audit the financial statements in accordance with
relevant legal and regulatory requirements and International Standards on
Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true
and fair view. We also report to you if, in our opinion, the Company has not
kept proper accounting records, or if we have not received all the information
and explanations we require for our audit.
We read the Directors' Report and any other information accompanying the
financial statements and consider whether it is consistent with the audited
financial statements. We consider the implications for our report if we become
aware of any apparent misstatements or material inconsistencies with the audited
financial statements. Our responsibilities do not extend to any other
information.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing
(UK and Ireland) issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and
disclosures in the financial statements. It also includes an assessment of the
significant estimates and judgments made by the Directors in the preparation of
the financial statements, and of whether the accounting policies are appropriate
to the Group's and Company's circumstances, consistently applied and adequately
disclosed.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view, in accordance
with International Financial Reporting Standards, of the state of the Group and
Parent Company's affairs as at 31 March 2009 and of the Group's profit for the
period then ended.
KPMG Audit LLC
Chartered Accountants
Heritage Court, 41 Athol Street, Douglas
Isle of Man IM99 1HN
28 July 2009
Consolidated Income Statement
For the period from 18 March 2008 (date of incorporation) to 31 March 2009
Note 2009
£'000
Investment Income
Interest received on bank balances 278
Fair value gains on investments at fair value through 11 7,467
the profit and loss
Realised loss on expired option 11 (250)
Net investment income 7,495
Expenses
Investment advisor fees 6 326
Performance fee provision 6 1,559
Other administration fees and expenses 5 2,367
Foreign exchange loss 5
Interest expense 55
Total expenses 4,312
Profit before taxation 3,183
Tax 7 -
Profit for the period 3,183
Basic and diluted earnings per share (pence) 8 8.67p
The Directors consider that all results derive from continuing activities.
Balance Sheets
as at 31 March 2009
Note Group Company
£'000 £'000
Non-current assets
Investments at fair value through profit or loss 11 32,000 -
Total non-current assets 32,000 -
Current assets
Trade and other receivables 15 75 25,840
Cash and cash equivalents 5,604 5,483
Prepayments 5 4
Total current assets 5,684 31,327
Total assets 37,684 31,327
Liabilities
Current liabilities
Trade and other payables 16 (688) (666)
Total current liabilities (688) (666)
Non-current liabilities
Performance fee provision (1,559) -
Total non current liabilities (1,559) -
Total liabilities (2,247) (666)
Net assets 35,437 30,661
Represented by:
Ordinary shares 12 367 367
Share premium 12 31,887 31,887
Retained reserves 3,183 (1,593)
Total equity 35,437 30,661
Statements of Changes in Equity
For the period from 18 March 2008 (date of incorporation) to 31 March 2009
Share Capital Share Premium Retained Earnings Total
GROUP £'000 £'000 £'000 £'000
Shares issued 367 36,333 36,700
Share issue costs (4,446) (4,446)
Profit for the period 3,183 3,183
Balance at 31 March 2009 367 31,887 3,183 35,437
COMPANY
Share issued 367 36,333 36,700
Share issue costs (4,446) (4,446)
Loss for the period (1,593) (1,593)
Balance at 31 March 2009 367 31,887 (1,593) 30,661
Consolidated Cash Flow Statements
For the period from 18 March 2008 (date of incorporation) to 31 March 2009
2009
Group
£'000
Cash flows from operating activities
Profit for the period 3,183
Adjustments:
Interest income on bank balances (278)
Fair value gains on investments at fair value through the (7,467)
profit and loss
Foreign exchange loss 3
Finance expense 55
Realised loss of expired option 250
Performance fee provision 1,559
Operating loss before changes in working capital (2,695)
Increase in creditors and accruals 688
Increase in debtors and prepayments (5)
(2,012)
Interest received 278
Net cash utilised by operating activities (1,734)
Cash flows from investing activities
Purchase of investments (24,533)
Loan issued to investment advisor (75)
Cash utilised by investing activities (24,858)
Cash flows from financing activities
Proceeds from issue of share capital 27,130
Payment of share issue costs (4,446)
Proceeds from loan received 13,350
Repayment of loan received (3,780)
Interest on loan paid (55)
Net cash generated from financing activities 32,199
Increase in cash and cash equivalents 5,607
Cash and cash equivalents at the beginning of the period -
Effect of exchange rate fluctuations on cash held (3)
Cash and cash equivalents at the end of the period 5,604
Non-cash transactions
£9,570,500 part of the loan from Kaupthing Bank hf was repaid by issue of
9,570,500 ordinary shares of the Company, see note 10.
The notes form an integral part of these consolidated financial statements.
Notes to the Financial Statements
for the period from 18 March 2008 (date of incorporation) to 31 March 2009
1 General information
The Company and its subsidiaries (together the Group) invest in assets in the
Indian infrastructure sector, with particular focus on assets and projects
related to energy and transport.
The Company is a closed-end investment company incorporated on 18 March 2008 in
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