Annual Financial Report

30 September 2025

Indus Gas Limited

("Indus" or the "Company")

Audited Final Results for the 12 months ended 31 March 2025

Indus Gas Limited (AIM:INDI), an oil & gas exploration and development company, announces its full year audited results for the 12 months to 31 March 2025, which will be made available on its website and sent to shareholders.

The Company will shortly publish its notice of annual general meeting and a further announcement will be made in due course.

-ENDS-

For further information please contact:

Indus Gas Limited

Jonathan Keeling

+44 (0) 7380 425 886

Strand Hanson Limited (Nominated & Financial Adviser and Broker)

Ritchie Balmer, Rory Murphy

+44 (0) 20 7409 3494

Overview

Indus Gas Limited ("Indus" or "Company") is engaged in oil and gas development in Block RJ-ON/6, Rajasthan, through its wholly owned subsidiaries iServices Investment Limited, Mauritius and Newbury Oil Company Limited, Cyprus. The Block currently measures an area of 2,176 sq. km and lies onshore in the highly prospective mid Indus Basin. The first discovery in the Block was made in 2006 and the first commercial production commenced in 2010. Production started from a small area in the SSG and SSF field in the year 2021.

Highlights

· Gas supplies to Gail are continuing under an interim term sheet. The Company is expecting a Production Sharing Contract (PSC) extension. A new Gas Sale and Purchase Agreement (GSPA) will be signed after the receipt of the PSC extension.

OPERATIONAL

§ Continued drilling / workover of wells.

FINANCIAL

§ Total Revenues were US$ 29.65 million (2023-24: US$ 42.93 million).

§ The value of Production, Plant and Equipment has been impaired to US$ 776.64 Million (2023-24:US$ 1291.62million) based on an independent valuer's report and group's estimates. Retained earnings have declined to a retained loss of US$ 54 million (2023-24: US$ 303.01 million). Deferred Tax liabilities (net) have decreased to US$ NIL (23-24: US$160.14million)

§ Operating profit for the year decreased to US$ 26.39 million (2023-24: US$ 36.56 million).

§ Profit before tax decreased to US$ 26.39 million (2023-24: US$ 36.12 million).

§ Net Investments (before impairment) made in property, plant and equipment amounting to US$ 18.37 million (2023-24: US$ 70.96 million).

§ All secured bank loans stand fully repaid on time.

Chairman's Statement

The Board would like to extend its sincere appreciation to employees, shareholders, bankers, and all other stakeholders for their continued loyalty and support during a challenging year. The Group remains committed to increasing gas production and offtake, and the management team continues to focus on executing the long-term strategy of growing reserves and achieving sustainable commercial production.

The Indian government's emphasis on enhancing domestic gas output to reduce reliance on costly imports and strengthen energy security aligns with the Group's strategic objectives. However, the year was not without its difficulties. Production levels were impacted by operational constraints, while the Group also recognized impairment losses on the production assets and property, plant and equipment following a reassessment of future cash flows and reserve estimates.

Following the lapse of certain rights of GAIL under the Gas Sales and Purchase Agreement (GSPA) with GAIL on 1 February 2025, the Group recognized income related to the expiry of make-up gas rights. Although GAIL has initiated arbitration proceedings, legal advice obtained by the company indicates that the claims are not sustainable, and considers that it is not probable that an outflow of resources will be required, therefore no provision has been recorded. 

The Board acknowledges the uncertainty arising from the expiry of key commercial agreements and the ongoing arbitration. Nonetheless, management continues to engage constructively with stakeholders to secure long-term arrangements and stabilize operations. The Group remains focused on navigating these challenges while preserving value and pursuing growth.

Jonathan Keeling

Chairman

Board of Director's Review

§ We are pleased to announce the consolidated total income aggregating to US$ 29.65 million (2023-24: US$ 42.93 million). The value of Production, Plant and Equipment has been impaired to US$ 776.64 million (2023-24:US$1,292.39 million) based on the third party report and group's estimates. Retained earnings have transitioned to a retained loss of US$ 54.55 million, compared to a positive balance of US$ 313.01 million in FY 2023-24, Deferred Tax liabilities (net) have decreased to US$ NIL. (2023-24 US$ 160.14 million)

Operations

Over the past year, the Group has continued to pursue its strategic objective of enhancing reserves and progressing their monetization. While operational activities remained focused on exploration and development, production levels declined due to various operational and commercial challenges.

Financials

During the financial year, the Group achieved total income of US$ 29.63 million (2023-24: US$ 42.93 million), resulting in reported operating profit of US$ 26.39 million (2023-24 US$ 36.56 million). The reported loss after tax was US$ 357.57 million as compared to Profit after tax in the previous year period 2023-24 US$ 20.19 million.

While the Group is not expected to pay any significant taxes on its income for many years in view of the 100% deduction allowed on the capital expenses incurred in the Block, the Company has accrued a Current tax liability of US$ 10.25 million (2023-24: US$ 15.75 million) as per IFRS Accounting Standards requirements.

The net expenditure on the purchase of property, plant & equipment was US$ 18.37 million (2023-24: US$ 70.96 million). The property plant and equipment, including development assets and production assets, increased to US$ 1,309.99 million (2023-24: US$ 1,291.62 million). After impairment Production, plant and equipment's reduced to US$ 776.14 million(2023-24: US$1291.62 Million)

The current assets (excluding cash and cash equivalent) as of 31 March 2025 stood at US$ 116.78 million (2023-24: US$ 116.87 million), which includes US$ 6.90 million (2023-24: US$ 8.94 million) of inventories, US$ 109.24 million (2023-24: US$ 107.31 million) of receivables from related party and US$ 0.64 million (2023-24: US$ 0.62 million) of trade receivables and other receivable. The current liabilities of the Company, excluding the related party liability of US$ 709.60 million (2023-24:US$ 0.01 million) and current portion of long-term debt of US$ 4.51 million (2023-24: US$ 20.58 million), stood at US$ 11.86 million (2023-24: US$ 1.53 million).

As of 31 March 2025, the outstanding unsecured debt from bonds was US$ 164.09 million (2023-24: US$ 164.03 million), of which US$ 4.51 million (2023-24: US$ 4.34 million) was categorized as repayable within a year and the remaining US$ 159.58 million (2023-24: US$ 159.68 million) has been categorized as a long-term liability.

Outlook

Over the next twelve months, the Group aims to achieve drilling success across targeted wells and advance the monetization of its gas reserves. Management remains focused on securing long-term commercial arrangements, resolving outstanding contractual matters, and stabilizing production levels. While recent operational setbacks, including reduced output and asset impairments, have presented challenges, the Group continues to align its strategy with India's national priority of enhancing domestic gas production and energy self-reliance. Efforts will also be directed toward strengthening stakeholder relationships, optimizing capital deployment, and maintaining financial discipline to support sustainable growth.

 Jonathan Keeling, Executive Chairman 

Board of Directors

JONATHAN KEELING - EXECUTIVE CHAIRMAN

Jonathan was a founding partner and a main board member of Arden Partners plc, a small and mid-cap institutional stockbroker and Jonathan's career in equity capital markets spans in excess of 30 years. Prior to Arden, Jonathan worked at Albert E Sharp, Harris All day and Old Mutual Securities. Jonathan is a Fellow of the Chartered Institute for Securities and Investment.

 ATIQ ANJARWALLA - DIRECTOR

 During the year, Mr. Atiq joined the board of director as independent non-executive director on 3rd October 2022.Mr. Atiq is an experience Lawyer and is a Solicitor of the Supreme Court of England and Wales Advocate of the High Court of Kenya and a Legal Consultant in Dubai. Atiq has a Master of Law from Jesus College Cambridge, England. Atiq's legal experience spans Corporate, Private Client, Banking, Project Finance and Capital Markets.

ELIZABETH POWELL - DIRECTOR

During the year, Mrs. Elizabeth Powell joined the board of director as independent non-executive director on 7th March 2023. Liz's background is primarily in Human Resources through her work with a major Guernsey based independent fiduciary. She has a CIPD qualification in HR and has become skilled in international payroll matters. In recent years, in addition to her personnel skills, she has taken on directorships in companies employing staff in the Oil & Gas sector as well as companies owning assets for international oil companies.

NICHOLAS SAUL - DIRECTOR

During the year, Mr. Nicholas Saul joined the board of director as independent non-executive director on 7th March 2023. Nick started his career as a Merchant Navy Officer with Texaco in 1980 and has been working in the Oil & Gas industry since. Today, he owns successful Guernsey business that manages the employment of thousands working in the hydrocarbons industry as well over 10,000 mariners. Nick has a BSc in Maritime Commerce, is an Associate Fellow of the Nautical Institute and a Chartered Member of The Chartered Institute of Logistics and Transport.

Directors' Report

The Directors present their report and the consolidated financial statements of Indus Gas Limited ("the Company") and its subsidiaries, iServices Investments Ltd and Newbury Oil Co. Ltd (collectively the "Group"), which covers the year from 1 April 2024 to 31 March 2025.

PRINCIPAL ACTIVITY AND REVIEW OF THE BUSINESS

The principal activity of the Company and Group is that of oil and gas exploration, development and production and other related services.

RESULTS AND DIVIDENDS

The trading results for the year and the Group's financial position at the end of the year are shown in the attached consolidated financial statements. The Group has earned a profit before tax of US$26.39 million (2023-24 : US$ 36.12 million) during the year.

§ The value of Production, Plant and Equipment has been impaired to US$ 776.14million (2023-24:US$1291.62 million) based on the independent valuer's report and group's estimates. Retained earnings have declined to a retained loss of US$ 54 million (2023-24: US$ 303.01 million). Deferred Tax liabilities (net) have decreased to US$NIL (2023-24: US$ 160.14million).

The Directors have not recommended a dividend for the year 2024-25.(2023-24 Nil)

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS

A review of the business and likely future developments of the Group are contained in the Chairman's statement and the Board of Director's review, given above.

BOARD CHANGES

The Group announces the following changes to its subsidiary boards:

• Ms. Wendy Ramakrishnan has stepped down from the Board effective from 5th March 2025.

• Mr. Rathee Jugessur has been appointed to the Board effective from 5th March 2025.

DIRECTORS REMUNERATION

The Directors' remuneration for the year ended 31 March 2025 was:

*Directors of subsidiary companies (I Services and Newbury)

 The Directors' remuneration for the year ended 31 March 2024 was:

*Directors of subsidiary companies (iServices and Newbury)

The Director remuneration consists of monthly/quarterly compensation as per the agreed terms. There are no further cash payments or benefits provided to Directors.

GAS MARKETS IN INDIA

India has a significant deficit of hydrocarbons which we believe will result in a long-term, steady demand for gas produced by our Block. According to the Petroleum and Natural Gas Regulatory Board ("PNGRB") Report, Vision 2030, India's natural gas demand will grow significantly to 746 MMSCM/d (26.3 BCF/d) by the end of Fiscal 2030. India is expected to have approximately 32,727 km of natural gas pipeline with a design capacity of 815 MMSCM/d in place by 2030. In order to further boost the consumption of natural gas in the country, the Government established a Gas Trading Hub/ Exchange (GTHE), where natural gas can be traded and supplied through a market-based mechanism instead of multiple formula driven prices. Initial trading has already started on Indian Gas Exchange.

From April 2024 to March 2025 the gas sale were invoiced at prices at the highest of US$ 8.90 per MMBTU to the lowest of US$ 7.29 per MMBTU.

FINANCIAL INSTRUMENTS

Details of the use of consolidated financial instruments by the Group are contained in note 28 to the attached financial statements.

RELATED PARTY TRANSACTIONS

Details of significant related party transactions are contained in note 16 and note 22 to the attached consolidated financial statements.

INTERNAL CONTROL

The Directors acknowledge their responsibility for the Group's system of internal control and for reviewing its effectiveness. The system of internal control is designed to manage the risk of failure to achieve the Group's strategic objectives. It cannot totally eliminate the risk of failure but will provide reasonable, although not absolute, assurance against material misstatement or loss.

GOING CONCERN

The Group's Production Sharing Contract (PSC) expired on 20 August 2024 and had not been extended as at the date of these consolidated financial statements. Management has formally applied for an extension of the PSC and continues to engage with relevant authorities to secure its renewal.

The Gas Sales and Purchase Agreement (GSPA) with the Group's sole customer expired on 30 September 2024. In its place, the Group entered into an Interim Term Sheet for gas sales and purchases, which is extendable every six months. The current Interim Term Sheet has been extended until 31 January 2026 Management remains in active negotiations with the customer to establish a long-term commercial arrangement. The repeated extensions of the Interim Term Sheet, along with the customer's operational reliance on gas from the block to support regional power generation, support the expectation of further extensions or renewal of the GSPA.

In relation to the GSPA, an arbitration tribunal has been constituted to address the ongoing dispute. Proceedings are underway, but no final award has been issued to date. Independent legal advice indicates that an outflow of economic resources arising from the arbitration is not currently considered probable. Resolution of the matter is expected to be protracted (refer to Note 24).

Subsequent to the reporting date, the Group has continued to service the borrowings and has arrangements in place to address maturing obligations. These include expected internal cash generation and continued financial support from majority shareholders. Gynia has confirmed that although the outstanding shareholders loan is contractually repayable on demand, it will not be recalled within the next 12 months

Management has prepared cash flow forecasts and operating plans that reflect these arrangements and the Group's available liquidity position.

Based on the factors and forecasts outlined above, management is confident that the Group will be able to meet its obligations as they become due in the ordinary course of business. However, despite these mitigating factors, the expiration of the PSC and the lack of a finalized long-term GSPA introduce a material uncertainty that could significantly impact the Group's ability to continue operating as a going concern. Nevertheless, these financial statements have been prepared on a going concern basis.

DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Directors' report and consolidated financial statements for each financial year which give a true and fair view of the state of affairs of the Group and of the consolidated statement of comprehensive income of the Group for that year. In preparing those financial statements the Directors are required to:

o Select suitable accounting policies and apply them consistently;

o Make judgements and estimates that are reasonable and prudent;

o State whether IFRS Accounting Standards as adopted by European Union have been followed subject to any material departures disclosed and explained in the financial statements; and

o Prepare consolidated financial statements on a going concern basis unless it is inappropriate to presume that the Group will continue in business.

The Directors confirm that the consolidated financial statements comply with the above requirements.

The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the consolidated financial position of the Company and of the Group to enable them to ensure that the consolidated financial statements comply with the requirements of the Companies (Guernsey) Law, 2008. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the provision and detection of fraud and other irregularities.

The Directors are responsible for maintaining the integrity of the corporate financial information included on the Group's website. Legislation in Guernsey governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

To the best of our knowledge and belief:

· The consolidated financial statements have been prepared in accordance with IFRS Accounting Standards (IFRS), as adopted by the European Union(EU);

· Give a true and fair view of the financial position and results of the Group; and

· The consolidated financial statements include an analysis of the principal financial instruments specific risks and uncertainties faced by the Group.

AUDITOR

All of the current Directors have taken all steps that they ought to have taken to make themselves aware of any information needed by the Group's Auditor for the purposes of their audit and to establish that the Auditor is aware of that information. The Directors are not aware of any relevant audit information of which the Auditor is unaware.

By order of the Board

Jonathan Keeling

Risks and Risk Management

In planning our future activities and reacting to changes in our ongoing business environment, we seek to identify, assess, mitigate and monitor the risks that we face. Considerable effort is made during our planning process to reduce and mitigate the various risks to the extent that this is practical and commercially sound. Ideally large decisions taken early means that any later adaptation or reaction should be small.

We cannot remove the Group from all risk and the oil and gas industry brings with it many special challenges in specific risks. What we can and do strive to achieve is to understand and manage the risk environment we work within.

The Group faces the appraisal, development and production risks of the oil and gas industry. The business relies on extensive engineering, geological and geophysical judgements.

As activities on the Block have grown and generated actual data and experience, we have used this knowledge to reduce these risks. There has been an increase in the number of wells to find hydrocarbons through the knowledge gained from almost complete 3D seismic data and analysis of drilling results. We shall continue to de-risk this area of our operations but the risk of a dry hole will never reach zero. The risk of mechanical issues or well construction failing remains. However, with greater standardization of well design and repetition of activities this has reduced.

We currently depend on one customer for the sale of gas and substantially all of our revenues. Discussions are on-going to find and develop new customer relationships.

GAIL has significant financial resources and maintains a strong credit rating providing comfort in meeting any obligations under our Agreement. Our gas is purchased at our field and shipped via a GAIL owned pipeline to the power plant. The pipeline is purpose built and operating well within its design specification.

The Group has Bonds outstandings. The Amounts were raised during 2018 through unsecured bonds, which were further re-financed with the additional bond offering made by the Group in November 2022. The Group has benefited from consistent support of the majority shareholder particularly reducing the risk of any funding gaps due to the delay in closing external finance. The Production Sharing Contract has expired and its renewal is currently pending Government approval; once approved, it will continue to include cost recovery and a long-term gas sales contract will be signed to enhance cash flow for debt servicing and protect lenders.

Our business, revenues and profits may fluctuate with changes in oil and gas prices. However, the prevailing prices of oil and gas can have some bearing on new contracts and price revisions.

As per the revised Domestic gas pricing Guidelines, Sales gas price shall be 10 pcr of monthly average of Indian crude basket as notified by PPAC on a monthly basis from 8th April, 2023. The Gas sale price in the year ended March 2024 ranged from highest of US$ 8.90 per MMBTU to the lowest of US$ 7.29 per MMBTU.

The oil and gas industry are subject to laws and regulations relating to environmental and safety matters in exploration for and the development and production of hydrocarbons. We are bound by the environmental laws and regulations applicable to India and satisfy and in some areas exceed these requirements by using good industry practice, trained staff and quality equipment.

We are committed to upholding procedures to protect the environment and enforce environmental, health, safety and security mechanisms through accountability at all levels, suitable policies, feedback and full compliance by each employee and contractor to all policies we develop.

The Government has historically played a key role, and is expected to continue to play a key role in regulating, reforming and restructuring the Indian oil and natural gas industry. A major platform for shaping the industry has been the award of assets by various rounds under the NELP. Our Block was awarded before the formation of NELP and therefore places greater emphasis on our Production Sharing Contract (PSC) in our dealings with Government in various forms. To date the Block Management Committee created under our PSC and including multiple Government agencies has assisted the development progress we have made so far. The Field Development Plan for the area beyond SGL was approved by Management Committee consisting representatives of DGH and government created under PSC. The Production Sharing Contract has expired and its renewal is currently pending Government approval; once approved, it will continue to include cost recovery and a long-term gas sales contract will be signed to enhance cash flow for debt servicing and protect lenders.

Corporate Governance

The Directors recognize the importance of sound corporate governance and have chosen to apply the Quoted Companies Alliance ("QCA") Corporate Governance Code and Guernsey regulations in so far as they are appropriate given the Group's size and stage of development. The Group may take additional Corporate Governance measures beyond QCA guidelines and Guernsey regulations as may be appropriate considering the Group's operations from time to time.

The Group has not adopted the UK Corporate Governance Code ("the Code") and has chosen to apply the QCA Corporate Governance Code for Small and Mid-Size Quoted Companies which is in line with most growing AIM companies adopted practices. The disclosure requirements under the code have been complied with and the detailed report is available on the official website (http://www.indusgas.com/) of the Group.

Corporate Governance standards and procedures adopted by the Group are regularly reviewed by the Chairman who has maintained dialogue and answered questions of shareholders throughout the year. The Chairman has consulted the Nomad on the objectives of Corporate Governance within the Group.

BOARD OF DIRECTORS

The Board is responsible for the proper management of the Group. The resumes of the current board members are as outlined in the section 'Board of Directors' on page no. 6.

Mr. Ajay Kalsi brings knowledge of the oil and gas industry and a range of general business skills and continues to be an advisor to the Group. The other Directors had formed a number of committees to assist in the governance of the Group and these are detailed below.

All Directors have access to independent professional advice, at the Group's expense, when required.

SUB-COMMITTEES

The Board had constituted the nomination and remuneration sub-committees, which were then disbanded in March 2022 as a result of the Board's reduced size. Given the Board's new directors appointed recently, nomination and remuneration sub-committees may reform in future. Further, currently, all the responsibilities of these sub committees are being carried out directly by the Board in line with defined policies and processes.

SHARE DEALING

The Group has adopted a share dealing code (based on the Model Code) and the Group takes all proper and reasonable steps to ensure compliance by Directors and relevant employees.

THE CITY CODE ON TAKEOVERS AND MERGERS

Being a Channel Islands incorporated Group, the Group is subject to the UK City Code on Takeovers and Mergers.

DISCLOSURE AND TRANSPARENCY RULES

As a Group incorporated in Guernsey, Shareholders are not obliged to disclose their interests in the Group in the same way as shareholders of certain companies incorporated in the UK. In particular, the relevant provisions of chapter 5 of the Disclosure and Transparency Rules (DTR) do not apply. While the Articles contain provisions requiring disclosure of voting rights in Ordinary Shares, which are similar to the provisions of the DTR, this may not always, ensure compliance with the requirements of Rule 17 of the AIM Rules. Furthermore, the Articles may be amended in the future by a special resolution of the Shareholders.

CONTROL BY SIGNIFICANT SHAREHOLDER

Gynia Holdings Limited, along with its wholly owned subsidiary Focus oil Inc., own a significant percentage of outstanding shares of the Group. As a significant shareholder, Gynia could exercise significant influence over certain corporate governance matters requiring shareholder approval, including the election of directors and the approval of significant corporate transactions and other transactions requiring a majority vote.

The Group, Strand Hanson Limited (Nomad and Broker), Gynia and Mr. Ajay Kalsi have entered into a relationship agreement to regulate the arrangements between them. The relationship agreement applies for as long as Gynia directly or indirectly holds in excess of thirty per cent of the issued share capital of the Group and the Group's shares remain admitted to trading on AIM. The relationship agreement includes provisions to ensure that:

a) The Board and its committees are able to carry on their business independently of the personal interests of Gynia;

b) The constitutional documents of the Group are not changed in such a way which would be inconsistent with the relationship agreement.

c) In the event of a conflict of interest between Gynia and the Board, no person who is connected with Gynia is appointed as a Non-Executive Director of the Group and no existing Non-Executive Director is removed as a director of the Group unless such an appointment or removal has been previously approved by the nomination committee of the Board and that to the extent that any previously approved by the nomination committees concerns the composition of the Board which has been approved by the Board requiring the approval of the shareholders of the Group then Gynia will vote its Ordinary Shares in favour; and

d) The Shareholder puts certain restrictions in place to prevent interference with the business of the Group.

INDEPENDENT AUDITOR'S REPORT

To the members of Indus Gas Limited

Opinion

We have audited the consolidated financial statements of Indus Gas Limited (the "Company") and its subsidiaries (the "Group") for the year ended 31 March 2025, which comprise the Consolidated Statement of Financial Position, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows for the year then ended, and Notes to the consolidated financial statements, including a summary of material accounting policy information.

In our opinion, the accompanied consolidated financial statements:

· give a true and fair view of the financial position of the Group as at 31 March 2025, and of its financial performance and its cashflows for the year then ended;

· are in accordance with IFRS Accounting Standards (IFRSs) as adopted by the European Union (EU); and

· comply with the Companies (Guernsey) Law, 2008. 

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the consolidated financial statements' section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), together with the ethical requirements that are relevant to our audit of the consolidated financial statements in Guernsey, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty related to going concern

We draw attention to Note 6.16 in the consolidated financial statements, which explains that the Group's Production Sharing Contract (PSC) expired on 20 August 2024 and has not been extended as of the date of approval of the consolidated financial statements. The Gas Sales and Purchase Agreement (GSPA) with the Group's sole customer, Gas Authority of India Limited (GAIL), also expired on 30 September 2024. The Group has entered into an interim term sheet for gas sales, which is renewable every six months and currently extended until 31 January 2026.

These events, along with other matters described in Note 6.16, indicate the existence of a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern.

Our opinion is not modified in respect of this matter.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the matters described below to be key audit matters to be communicated in our report.

Other information in the Annual Report

The directors are responsible for the other information. The other information comprises the information included in the Annual Report and Audited consolidated financial statements, but does not include the consolidated financial statements and our auditor's report thereon.

Our opinion on the consolidated financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the consolidated financial statements

As explained more fully in the Statement of Directors' Responsibilities set out on page 10, the Directors are responsible for the preparation of the consolidated financial statements which give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and for such internal control as the Directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

· Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.

· Conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

· Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. 

· Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Michael Carpenter.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with section 262 of the Companies (Guernsey) Law, 2008. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies (Guernsey) Law, 2008 requires us to report to you if, in our opinion:

· proper accounting records have not been kept by the Company; or

· the Group's consolidated financial statements are not in agreement with the accounting records; or

· we have not obtained all the information and explanations, which to the best of our knowledge and belief, are necessary for the purposes of our audit.

Grant Thornton Limited

Chartered Accountants

St Peter Port

Guernsey

Date: 29 September 2025

Consolidated Statement of Financial Position

(All amounts in United States Dollars, unless otherwise stated)

(The accompanying notes are an integral part of these consolidated financial statements)

These consolidated financial statements were approved and authorized for issue by the board on 29 September 2025 and were signed on its behalf by:

JONATHAN KEELING

Chairman

Consolidated Statement of Comprehensive Income

(All amounts in United States Dollars, unless otherwise stated)

(The accompanying notes are an integral part of these consolidated financial statements)

Consolidated Statement of Changes in Equity

(All amounts in United States Dollars, unless otherwise stated)

(The accompanying notes are an integral part of these consolidated financial statements)

Consolidated Statement of Cash Flows

(All amounts in United States Dollars, unless otherwise stated)

(The accompanying notes are an integral part of these consolidated financial statements)

Notes to Consolidated Financial Statements

(All amounts in United States Dollars, unless otherwise stated)

1. INTRODUCTION

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

Focus Energy Limited ("Focus"), an entity incorporated in India, entered into a Production Sharing Contract ("PSC") with the Government of India ("GOI") and Oil and Natural Gas Corporation Limited ("ONGC") on 30 June 1998 for petroleum exploration and development concession in India known as RJ-ON/06 ("the Block"). Focus is the Operator of the Block. On 13 January 2006, iServices and Newbury entered into an interest sharing agreement with Focus and obtained a 65 per cent and 25 per cent share respectively in the Block. The balance of 10 per cent of participating interest is owned by Focus. The participating interest explained above is subject to any option exercised by ONGC in respect of individual fields (already exercised for all the wells in SGL field as further explained in note 3).

2. GENERAL INFORMATION

The consolidated financial statements of the Group have been prepared in accordance with IFRS Accounting Standards ('IFRS') as adopted by the European Union ('EU'). The consolidated financial statements have been prepared on a going concern basis (refer to note 6.16) and are presented in United States Dollar (US$). The functional currency of the Group as well as its subsidiaries is US$.

3. JOINTLY CONTROLLED ASSETS

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

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

The block is divided into 3 fields - SGL, SSF and SSG.

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

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

The allocation of the production from the field to each participant in any year is determined on the basis of the respective proportion of each participant's cumulative unrecovered contract costs as at the end of the previous year or where there is no unrecovered contract cost at the end of previous year on the basis of participating interest of each such participant in the field.

On the basis of the above, gas production for the year ended 31 March 2025 is shared between Focus, iServices and Newbury in the ratio of 10 percent, 65 percent and 25 percent, respectively. ONGC will not be entitled to any participating interest in the production until the full exploration and development cost and production cost is recovered by other participants. 

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

Further, the SSF and SSG field also received its declaration of commerciality on 24th November 2014. Subsequent to the declaration of commerciality for SSF and SSG discovery, ONGC did not exercise the option to acquire 30 percent in respect of SSG and SSF field. The participating interest in SSG and SSF field between Focus, iServices and Newbury will remain in ratio of 10 percent, 65 percent and 25 percent respectively for exploration, evaluation and development cost, and production revenue for SSG and SSF in the block.

4. NEW AND AMENDED STANDARDS ADOPTED BY THE GROUP

These following amendments to various IFRS Accounting Standards are mandatorily effective for reporting periods beginning on or after 1 January 2024:

a. Classification of Liabilities as Current or Non-current (Amendments to IAS 1)

b. Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)

c. Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)

d. Non-current Liabilities with Covenants (Amendments to IAS 1) 

These amendments do not have a significant impact on the consolidated Financial Statements and therefore the disclosures have not been made.

5. STANDARDS AND INTERPRETATIONS ISSUED BUT NOT EFFECTIVE AND YET TO BE APPLIED BY THE GROUP

A number of new and amended accounting standards and interpretations have been published that are not mandatory for the Group's accounts ended 31 March 2025 nor have they been early adopted. These standards and interpretations are not expected to have a material impact on the Group's consolidated financial statements. Even though IFRS 18 will not have any effect on the recognition and measurement of items in the consolidated financial statements, it is expected to have a significant effect on the presentation and disclosure of certain items.:

i. Lack of Exchangeability (Amendments to IAS 21)

ii. Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)

iii.  IFRS 18 - Presentation and Disclosure in Financial Statements

iv.  IFRS 19 - Subsidiaries without Public Accountability: Disclosures

6. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The consolidated financial statements have been prepared on a historical basis, except where specified below. A summary of the material accounting policies applied in the preparation of the accompanying consolidated financial statements are detailed below.

6.1. BASIS OF CONSOLIDATION

The consolidated financial statements include the financial statements of the parent company and all of its subsidiary undertakings drawn up to 31 March 2025. The Group consolidates entities which it controls. Control exists when the parent has power over the entity, is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entity's returns.

The Group recognises in relation to its interest in a joint operation: 

a. its assets, including its share of any assets held jointly;

b. its liabilities, including its share of any liabilities incurred jointly;

c. its revenue from the sale of its share of the output arising from the joint operation;

d. its share of the revenue from the sale of the output by the joint operation; and

e. its expenses, including its share of any expenses incurred jointly.

Intra-Group balances and transactions, and any unrealised gains and losses arising from intra-Group transactions are eliminated in preparing the consolidated financial statements. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.

Profit or losses of subsidiaries acquired or disposed of during the year are recognised from the date of control of acquisition, or up to the effective date of disposal, as applicable.

6.2. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES

In preparing consolidated financial statements, the Group's management is required to make judgments, 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 statement and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, actual results may ultimately differ from those estimates. The management's estimates for the useful life and residual value of tangible assets, impairment of tangible assets and recognition of provision for decommissioning represent certain particularly sensitive estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Information about significant judgments, estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, revenues and expenses is provided in note 26.

6.3. FOREIGN CURRENCIES

The consolidated financial statements have been presented in US$ which is the functional currency of the Company and the group entities.

Foreign currency transactions are translated into the functional currency of the respective Group entities, using the exchange rates prevailing at the dates of the transactions (spot exchange rate).

Functional currency is the currency of the primary economic environment in which the entity operates.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Differences arising on settlement or translation of monetary items and other foreign currency transactions are recognized in consolidated statement of comprehensive income.

Non-monetary items measured at historical cost are recorded in the functional currency of the entity using the exchange rates at the date of the transaction.

6.4. REVENUE RECOGNITION

In accordance with IFRS 15, Revenue from contracts with customers is recognised when or as the Company satisfies a performance obligation by transferring control of promised goods to a customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for the sale of products, net of taxes on sales, estimated rebates and other similar allowances.

Sale of gas

The contracts with customers establish a single performance obligation in relation to supply of natural gas. The transfer of control of natural gas coincides with title passing to the customer and the customer taking physical possession. The whole of the transaction price of the contract is allocated to supply of natural gas and the revenue has been recognised on point in time basis when the quantities of natural gas are supplied to the customers.

The Group has only one contractual arrangement for sale of gas to Gas Authority of India Limited (GAIL), wherein the revenue gets recognised on the basis of delivery i.e. point in time revenue recognition. Further, there are no other performance obligations which the company is liable to perform. As per the contract signed with customer, entity is eligible to recover the amount from customer within 15 days of raising invoice.

The Group updates its estimated transaction price at each reporting period, to represent faithfully the circumstances present at the end of the reporting period and the changes in circumstances during the reporting period including penalties, discounts and damages etc.

Take or pay:

Any payment received on account of lesser gas volume lifted by the customer against the "annual contracted volume" for which an obligation exists to make-up such differential gas in subsequent periods is recognised as Contract Liabilities in the year of receipt. Revenue in respect of take or pay obligation is recognised when such gas is actually supplied or when the customer's right to make up is expired, whichever is earlier. For other contracts, where the Group does not have any obligation to make up such gas in subsequent period is directly recognised as revenue.

6.5. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment comprise development assets and other properties, plant and equipment used in the gas fields and for administrative purposes. These assets are stated at cost plus decommissioning cost less accumulated depreciation and any accumulated impairment losses.

Development assets are accumulated on a field-by-field basis and comprise costs of developing the commercially feasible reserve, expenditure on the construction, installation or completion of infrastructure facilities such as platforms, pipelines and other costs of bringing such reserves into production. It also includes the exploration and evaluation costs incurred in discovering the commercially feasible reserve, which have been transferred from the exploration and evaluation assets as per the policy mentioned in note 6.6. As consistent with the full cost method, all exploration and evaluation expenditure incurred up to the date of the commercial discovery have been classified under development assets of that field.

The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of comprehensive income of the year in which the asset is derecognized. However, where the asset is being consumed in developing exploration and evaluation assets, such gain or loss is recognized as part of the cost of the asset.

The asset's residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each period end. No depreciation is charged on development assets until production commences.

Depreciation on property, plant and equipment is provided at rates estimated by the management. Depreciation is computed using the straight-line method of depreciation, whereby each asset is written down to its estimated residual value evenly over its expected useful life. The useful lives estimated by the management are as follows:

Land acquired is recognized at cost and no depreciation is charged as it has an unlimited useful life.

Production assets are depreciated from the date of commencement of production, on a field-by-field basis with reference to the unit of production method for the commercially probable and proven reserves in the particular field.

Advances paid for the acquisition/ construction of property, plant and equipment which are outstanding at the end of the reporting period and the cost of property, plant and equipment under construction before such date are disclosed as 'Capital work-in-progress'.

6.6. EXPLORATION AND EVALUATION ASSETS

The Group adopts the full cost method of accounting for its oil and gas interests, having regard to the requirements of IFRS 6: Exploration for and Evaluation of Mineral Resources. Under the full cost method of accounting, all costs of exploring for and evaluating oil and gas properties, whether productive or not are accumulated and capitalized by reference to appropriate cost pools. Such cost pools are based on geographic areas and are not larger than a segment. The Group currently has one cost pool being an area of land located in Rajasthan, India.

Exploration and evaluation costs may include costs of license acquisition, directly attributable exploration costs such as technical services and studies, seismic data acquisition and processing, exploration drilling and testing, technical feasibility, commercial viability costs, finance costs to the extent they are directly attributable to financing these activities and an allocation of administrative and salary costs as determined by management. All costs incurred prior to the award of an exploration license are written off as a loss in the year incurred.

Exploration and evaluation costs are classified as tangible asset according to the nature of the assets acquired and the classification is applied consistently. Tangible exploration and evaluation assets are recognized and measured in accordance with the accounting policy on property, plant and equipment. To the extent that such a tangible asset is consumed in developing exploration and evaluation asset, the amount reflecting that consumption is recorded as part of the cost of the asset.

Exploration and evaluation assets are not amortized prior to the conclusion of appraisal activities. Where technical feasibility and commercial viability is demonstrated, the carrying value of the relevant exploration and evaluation asset is reclassified as a development and production asset and tested for impairment on the date of reclassification. Impairment loss, if any, is recognized.

The group has completed exploration and evaluation phase in 2017 when field development plan has been approved by Directorate General of Hydrocarbons ('DGH') i.e., technical feasibility and commercial viability were demonstrable. Therefore, any cost incurred thereafter on development activities is capitalized directly to development assets.

6.7. IMPAIRMENT TESTING FOR EXPLORATION AND EVALUATION ASSETS AND PROPERTY, PLANT AND EQUIPMENT

An impairment loss is recognized for the amount by which an asset's cash-generating unit's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell, and value in use based on an internal discounted cash flow evaluation.

Where there are indicators that an exploration asset may be impaired, the exploration and evaluation assets are grouped with all development/producing assets belonging to the same geographic segment to form the Cash Generating Unit (CGU) for impairment testing. Where there are indicators that an item of property, plant and equipment asset is impaired, assets are grouped at the lowest levels for which there are separately identifiable cash flows to form the CGU. The combined cost of the CGU is compared against the CGU's recoverable amount and any resulting impairment loss is written off in the profit or loss of the year. During the year, the company has recognized impairment of assets.

An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset's or CGU's recoverable amount. A previously recognized 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 recognized. 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 recognized for the asset in prior years. Such reversal is recognized in profit or loss unless the asset is carried at a re-valued amount, in which case the reversal is treated as a revaluation increase.

6.8. FINANCIAL ASSETS

Financial Instruments

Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the financial instrument. Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognized when it is extinguished, discharged, cancelled or expires. Financial assets and financial liabilities are measured initially at fair value plus transactions costs, except for financial assets and financial liabilities carried at fair value through profit or loss, which are measured initially at fair value. Trade receivables that do not contain a significant financing component are measured at the transaction price. The value of interest free financial assets and financial liabilities with short term maturities are not discounted at initial recognition if the impact is not material. Financial assets and financial liabilities are measured subsequently as described below.

Recognition of Financial Asset

On initial recognition, a financial asset is classified as measured at

 - Amortized cost;

 - Fair value through other comprehensive income (FVOCI) - debt investment;

 - Fair value through other comprehensive income (FVOCI) - equity investment; or

 - Fair value through profit and loss (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Group changes its business model for managing financial assets.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

· The asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

· The category determines subsequent measurement and whether any resulting income and expense is recognized in consolidated statement of comprehensive income.

After initial recognition, financials assets at amortized cost are measured at amortized cost using the effective interest method.

Impairment of financial assets

IFRS 9's impairment requirements use more forward-looking information to recognise expected credit losses - the 'expected credit loss (ECL) model'. The Group considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

In applying this forward-looking approach, a distinction is made between:

· financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk and

· financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low.

· financial assets that have objective evidence of impairment at the reporting date.

'12-month expected credit losses' are recognised for the first category while 'lifetime expected credit losses' are recognised for the second category.

The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables only, the Group applies the simplified approach required by IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

6.9. FINANCIAL LIABILITIES

The Group's financial liabilities include borrowings, trade payables and other payables which are classified as financial liabilities recognized at amortized cost. Financial liabilities are measured subsequently at amortized cost using the effective interest method except for financial liabilities at fair value through profit or loss ("FVTPL"), that are carried subsequently at fair value with gains or losses recognized in profit or loss in consolidated statement of comprehensive income.

6.10. INVENTORIES

Inventories are measured at the lower of cost and net realizable value. Inventories of drilling stores and spares are accounted for at cost including taxes, duties and freight. The cost of all inventories other than drilling bits is computed on the basis of the first in first out method. The cost for drilling bits is computed based on specific identification method.

6.11. ACCOUNTING FOR INCOME TAXES

Income tax assets and/or liabilities comprise those obligations to, or claims from, fiscal authorities relating to the current or prior reporting period that are unrecovered/unpaid at the date of the statement of financial position. They are calculated according to the tax rates and tax laws applicable to the fiscal periods to which they relate, based on the taxable profit for the year. All changes to current tax assets or liabilities are recognized as a component of tax expense in consolidated statement of comprehensive income.

Deferred income taxes are calculated using the balance sheet method on temporary differences. This involves the comparison of the carrying amounts of assets and liabilities in the financial statements with their tax bases. The cost incurred on each field is claimed as deduction from the year of commercial production. Deferred tax is, however, neither 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. Tax losses available to be carried forward as well as other income tax credits to the Group are assessed for recognition as deferred tax assets.

Deferred tax liabilities are always provided for in full. Deferred tax assets are recognized to the extent that it is probable that they will be offset against future taxable income. Deferred tax assets and liabilities are calculated, without discounting, at tax rates and laws that are expected to apply to their respective period of realization, provided they are enacted or substantively enacted at the date of the statement of financial position.

Changes in deferred tax assets or liabilities are recognized as a component of tax expense in profit or loss of the year, except where they relate to items that are charged or credited directly to other comprehensive income or equity in which case the related deferred tax is also charged or credited directly to other comprehensive income or equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.

6.12. BORROWING COSTS

Any interest payable on funds borrowed for the purpose of obtaining qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, is capitalized as a cost of that asset until such time as the assets are substantially ready for their intended use or sale. While the Group has not made any specific borrowings for construction of a qualifying asset, they have capitalized certain borrowing costs on account of general borrowings at an average rate of borrowings for the Group in terms of IAS 23 'Borrowing Costs'.

Any associated interest charge from funds borrowed principally to address a short-term cash flow shortfall during the suspension of development activities is expensed in the period. Transaction costs incurred towards an unutilized debt facility is treated as prepayments to be adjusted against the carrying value of debt as and when drawn.

6.13. CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand, at bank in demand deposits and deposit with maturities of 3 months or less from inception, which are readily convertible to known amounts of cash. These assets are subject to an insignificant risk of change in value.

6.14. OTHER PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event. It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Where the Group expects some or all of provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision net of any reimbursement is recognized in profit or loss of the year. To the extent such expense is incurred for construction or development of any asset, it is included in the cost of that asset. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as other finance expenses.

Provisions include decommissioning provisions representing management's best estimate of the Group's liability for restoring the sites of drilled wells to their original status. Provision for decommissioning is recognized at the present value of the estimated future expenditure when the Group has an obligation and a reliable estimate can be made, with a corresponding addition to property, plant and equipment which is subsequently depreciated as part of the asset.

Commitments and contingent liabilities are not recognized in the financial statements. They are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote.

A contingent asset is not recognized but disclosed in the financial statements when an inflow of economic benefits is probable but when it is virtually certain than the asset is recognized in the financial statements.

In those cases, where the possible outflow of economic resources a result of present obligations is considered improbable or remote, or the amount to be provided for cannot be measured reliably, no liability is recognized in the statement of financial position and no disclosure is made.

6.15. SEGMENT REPORTING

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

6.16. BASIS OF GOING CONCERN ASSUMPTION

The Group's Production Sharing Contract (PSC) expired on 20 August 2024 and had not been extended as at the date of these consolidated financial statements. Management has formally applied for an extension of the PSC and continues to engage with relevant authorities to secure its renewal.

The Gas Sales and Purchase Agreement (GSPA) with the Group's sole customer expired on 30 September 2024. In its place, the Group entered into an Interim Term Sheet for gas sales and purchases, which is extendable every six months. The current Interim Term Sheet has been extended until 31 January 2026. Management remains in active negotiations with the customer to establish a long-term commercial arrangement. The repeated extensions of the Interim Term Sheet, along with the customer's operational reliance on gas from the block to support regional power generation, support the expectation of further extensions or renewal of the GSPA.

In relation to the GSPA, an arbitration tribunal has been constituted to address the ongoing dispute. Proceedings are underway, but no final award has been issued to date. Independent legal advice indicates that an outflow of economic resources arising from the arbitration is not currently considered probable. Resolution of the matter is expected to be protracted (refer to Note 24).

Subsequent to the reporting date, the Group has continued to service the borrowings and has arrangements in place to address maturing obligations. These include expected internal cash generation and continued financial support from majority shareholders. Gynia has confirmed that although the outstanding shareholders loan is contractually repayable on demand, it will not be recalled within the next 12 months. Management has prepared cash flow forecasts and operating plans that reflect these arrangements and the Group's available liquidity position.

Based on the factors and forecasts outlined above, management is confident that the Group will be able to meet its obligations as they become due in the ordinary course of business. However, despite these mitigating factors, the expiration of the PSC and the lack of a finalized long-term GSPA introduce a material uncertainty that could significantly impact the Group's ability to continue operating as a going concern. Nevertheless, these financial statements have been prepared on a going concern basis.

7. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment comprise of the following:

The balances above represent the Group's share in property, plant and equipment as per note 3. Tangible assets comprise development /production assets in respect of SGL, SSG and SSF fields.

Development assets of SGL, SSG and SSF fields includes the amount of exploration and evaluation expenditure transferred to development cost on the date of the first commercial discovery declared by the Group and also includes expenditure incurred for the drilling of further wells in these fields to enhance the production activity.

Production assets in respect of SGL field includes completed production facilities. The Group commenced the production facility in October 2012, and accordingly such production assets have been depreciated since this date.

The additions in development assets also include borrowing costs US$ 13,465,472 (previous year: US$ 56,485,719). The weighted average capitalization rate on funds borrowed generally is 6.80 per cent per annum (previous year 6.76 per cent).

The depreciation has been included in the following headings-

The Group assessed the carrying value of its gas production assets in Block RJ-ON/6 as at 31 March 2025 in accordance with IAS 36. Triggering events included the expiry of the PSC and GSPA contract, declining production volumes, adverse reservoir behaviour, and ongoing arbitration with GAIL (India) Limited. The recoverable amount of the CGU was determined on a value-in-use basis using discounted cash flow forecasts. Refer to note 25 for additional disclosures on impairment.

8. DEFERRED TAX ASSETS/ LIABILITIES (NET)

Deferred taxes arising from temporary differences are summarized as follows:

a) The deferred tax movements during the current year have been recognized in the consolidated statement of comprehensive income.

b) The deferred tax on the Impairment of assets has been recognized only to the extent of the deferred tax liability.

c) The Group has recognized deferred tax assets on deductible temporary differences and unused tax losses/credits to the extent that they can be offset against taxable temporary differences represented by existing deferred tax liabilities within the same jurisdiction.

9. INCOME TAXES

Income tax is based on the tax rates applicable on profit or loss in various jurisdictions in which the Group operates. The effective tax at the domestic rates applicable to profits in the country concerned as shown in the reconciliation below have been computed by multiplying the accounting profit by the effective tax rate in each jurisdiction in which the Group operates. The individual entity amounts have then been aggregated for the consolidated financial statements. The effective tax rate applied in each individual entity has not been disclosed in the tax reconciliation below as the amounts aggregated for individual Group entities would not be a meaningful number.

Income tax credit is arising on account of the following:

The relationship between the expected tax expense based on the domestic tax rates for each of the legal entities within the Group and the reported tax expense in consolidated statement of comprehensive income is reconciled as follows:

The reconciliation shown above has been based on the rate 38.22 per cent (previous year: 43.68 per cent) as applicable under Indian tax laws.

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

10.  INVENTORIES

Inventories comprise the following:

The above inventories are held for use in the exploration, development and production activities. These are valued at cost determined based on policy explained in paragraph 6.10. Inventories of US$ 80,456 (previous year: US$ 275,190) were recorded as an expense under the heading 'cost of sales' in the consolidated statement of comprehensive income during the year ended 31 March 2025. Inventories of US$ 3,091,919 (previous year: US$ 8,623,730) were capitalized as part of development assets.

11.  TRADE AND OTHER RECEIVABLES

The carrying amount of trade receivables approximates their fair values. Refer "Credit risk" in note 29 for further information.

12.  CASH AND CASH EQUIVALENTS

The Group only deposits cash surpluses with major banks of high-quality credit standing.

13. EQUITY

Authorized share capital

The total authorized share capital of the Group is GBP 5,000,000 divided into 500,000,000 shares of GBP 0.01 each.

Issued share capital

The total issued share capital of the Group is US$ 3,619,443 (previous year: 3,619,443) divided into 182,973,924 shares (previous year: 182,973,924).

--For all matters submitted to vote in the shareholders meeting of the Group, 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 shareholders are equally eligible to receive dividends and the repayment of capital in the event of liquidation of the individual entities of the Group.

Additional paid in capital

Additional paid-in capital represents excess over the par value of share capital paid in by shareholders in return for the shares issued to them, recorded net of expenses incurred on issue of shares.

Currency translation reserve

Currency translation reserve represents the balance of translation of the entity's financial statements into US$ until 30 November 2010 when its functional currency was assessed as GBP. Subsequent to 1 December 2010, the functional currency of Indus Gas was reassessed as US$.

Merger reserve

The balance on the merger reserve represents the fair value of the consideration given in excess of the nominal value of the ordinary shares issued in an acquisition made by the issue of shares of subsidiaries from other entities under common control.

Retained earnings/(losses)

Retained earnings/(losses) include current and prior period retained profits.

14. LONG TERM DEBT

From Banks

Current interest rates are variable and weighted average interest for the year was 8.09 per cent per annum (previous year: 5.80 per cent per annum). The fair value of the above variable rate borrowings is considered to approximate their carrying amounts. The maturity profile (undiscounted) is explained in note 28.

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

The term loans are secured by following: -

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

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

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

From Bonds

The Group had issued US Dollar 160.00 million bonds which carries interest at the rate of 8 per cent per annum, for the purpose of re-financing the bonds which were repayable in December 2022. These bonds are unsecured bonds and are fully repayable at the end of 5 years i.e., November 2027, further interest on these notes is paid semi-annually.

15.  PROVISION FOR DECOMMISSIONING

As per the PSC, the Group is required to carry out certain decommissioning activities on gas wells. The provision for decommissioning relates to the estimation of future disbursements related to the abandonment and decommissioning of gas wells. The provision has been estimated by the Group's engineers, based on individual well filling and coverage. This provision will be utilized when the related wells are fully depleted. The majority of the cost is expected to be incurred within a period of the next 4 years.

16.  PAYABLE/ RECEIVABLE TO RELATED PARTIES

Related parties payable comprise the following:

* During the previous financial year, borrowings from Gynia Holdings Ltd. bore interest at the rate of 6.5% per annum, compounded annually. However, in the current financial year, Gynia Holdings Ltd., being the holding Group, has waived the interest on such borrowings. As outstanding amount remains repayable on demand, it has been reclassified to current liabilities in the current year. Gynia has confirmed that although the contractually repayable on demand, the outstanding amount will not be recalled within the next 12 months

Interest capitalised on loans above have been disclosed in note 7.

Related parties' receivable comprises the following:

Prepayments and other assets due from Focus

Prepayments to Focus represents excess amounts paid to them in respect of the Group's share of contract costs, for its participating interest in Block RJ-ON/6 pursuant to the terms of Agreement for Assignment dated 13 January 2006 and its subsequent amendments from time to time.

Other assets comprises of the amount of royalty recoverable from Focus Energy Limited.

17. TRADE AND OTHER PAYABLES

The carrying amount of trade and other payable approximates their fair values and are non-interest bearing.

18. REVENUE

The Group's revenue disaggregated by primary geographical markets is as follows:

The Group's revenue disaggregated by the portion of revenue recognition is as follows:

Sale of Goods (Gas)

The revenue majorly pertains to the sale of natural gas and condensate production (by-product). The Group sells its natural gas to GAIL at a price fixed under the agreement. The condensate is sold in the open market through bidding. Further, the Group has entered into a gas sale agreement wherein the customer is to be liable to pay 41 % (Previous year: 41%) of the annual contracted quantity if the customer does not purchase gas during the financial year.

Contractual assets and Contractual Liabilities

The Group has recognized income on account of expiry of all rights of GAIL to receive make-up gas under the Gas Sale and Purchase Agreement ("GSPA"), which automatically lapsed on 1st February 2025. Although GAIL has initiated arbitration proceedings in relation to this matter, based on detailed legal advice obtained by the Company, the management is of the view that no present obligation exists and, accordingly, no liability is expected to arise against the Group in the future

19. EMPLOYEE COST

Per the PSC, Focus is the Operator of the Block. For SGL field, ONGC has a participative interest of 30% in the development cost. Hence, the share of iServices and Newbury are proportionately reduced (i.e., 45.5% and 17.5% respectively). For the Non-SGL field, the share of iServices, Newbury and Focus are in the ratio of 65%, 25% and 10% respectively. The Employee cost attributable to Indus Gas Limited has been allocated in the agreed ratio (refer note 3) by Focus and recorded as cost of sales and administrative expenses in the consolidated statement of comprehensive income amounting to US$ 540,568(previous year US$ 197,976) and US$ 356,668 (previous year US$ 317,758) respectively. Cost pertaining to the employees of the Group have been included under administrative expense is US$ 165,066 (previous year US$ 172,274).

20. FOREIGN CURRENCY EXCHANGE (LOSS)/ GAIN, NET

The Group has recognized the following in the consolidated statement of comprehensive income on account of foreign currency fluctuations:

21.  EARNINGS PER SHARE

The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. Calculation of basic and diluted earnings per share is as follows:

22. RELATED PARTY TRANSACTIONS

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

Disclosure of transactions between the Group and related parties and the outstanding balances as at 31 March 2025 and 31 March 2024 is as under:

Transactions with Holding Company

Transactions with KMP and entity over which KMP exercise control

Directors' remuneration

Directors' remuneration is included under administrative expenses, evaluation and exploration assets or development assets in the consolidated financial statements allocated on a systematic and rational manner. Remuneration by director is separately disclosed in the directors' report on page 7.

23. SEGMENT REPORTING

The Chief Operating Decision Maker being the Chief Executive Officer of the Group, reviews the business as one operating segment being the extraction and production of gas. The operating segments have been aggregated due to similar economic characters and allied nature of product and services. Hence, no separate segment information has been furnished herewith.

All of the non-current assets other than financial instruments and deferred tax assets (there are no employment benefit assets and rights arising under insurance contracts) are located in India and amounted to US$ 776,139,979 (previous year: US$ 1,291,623,477).

Revenue from customers have been identified on the basis of the customer's geographical location and are disclosed in note 18. The total revenue from the Group is from the sale of natural gas, its by-products (i.e., condensate) to Oil and gas exploration companies. The revenue from the top customer comprises 96.06% (Previous year: 95.10%) of the Group's total revenue.

24. COMMITMENTS AND CONTINGENCIES

The Group has no commitments as at 31 March 2025 (previous year Nil).

The Company, together with its group entities, is a respondent in an arbitration initiated by GAIL (India) Limited under the Gas Sale and Purchase Agreement dated 7 August 2009 relating to supply of natural gas from Block RJ-ON/6 in Rajasthan. GAIL has raised claims for refund of Take-or-Pay amounts and other contractual entitlements. The Respondents have filed a defence and counter-claims.

The matter is currently under arbitration and is subject to interpretation of contractual provisions and resolution of factual disputes. Based on legal advice, management is of the view that the claims are not sustainable, and considers that it is not probable that an outflow of resources will be required. Accordingly, no provision has been recognised. However, given the status of proceedings, the matter represents a contingent liability whose outcome cannot be determined at this stage.

No adjustment has been made in the accompanying financial statements in respect of this matter.

25. ACCOUNTING ESTIMATES AND JUDGEMENTS

In preparing consolidated financial statements, the Group's management is required to make judgments and estimates 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 judgments and estimates are based on management's best knowledge of current events and actions and actual results from those estimates may ultimately differ.

Significant judgments applied in the preparation of the consolidated financial statements are as under:

Determination of functional currency of individual entities

Following the guidance in IAS 21 "The effects of changes in foreign exchange rates", the functional currency of each individual entity is determined to be the currency of the primary economic environment in which the entity operates. In the management's view each of the individual entity's functional currency reflects the transactions, events and conditions under which the entity conducts its business. The management believes that US$ has been taken as the functional currency for each of the entities within the Group. US$ is the currency in which each of these entities primarily generate and expend cash and also generate funds for financing activities.

Going concern

Management has exercised significant judgement in concluding that the Group is a going concern, taking into account the expiry of the PSC and GSPA, the Group's liquidity and majority shareholder support (note 6.16), and the ongoing arbitration proceedings with GAIL (note 24), . While the financial statements are prepared on a going concern basis, these factors give rise to material uncertainties which may cast significant doubt on the Group's ability to continue as a going concern.

Full cost accounting for exploration and evaluation expenditure

The Group has followed 'full cost' approach for accounting for exploration and evaluation expenditure against the 'successful efforts' method. As further explained in note 6.6, exploration and evaluation assets recorded using 'full cost' approach are tested for impairment prior to reclassification into development assets on successful discovery of gas reserves.

Impairment of tangible assets

The Group follows the guidance of IAS 36 and IFRS 6 to determine when a tangible asset is impaired. This determination requires significant judgment to evaluate indicators triggering impairment. The Group monitors internal and external indicators of impairment relating to its tangible assets. For the purpose of impairment assessment, judgements are involved in estimating the expected gas extraction from production assets, based on which, indicators are identified necessary for determining that an impairment assessment is necessary. Based on management assessment, the management has carried out impairment testing for impairment of property, plant and equipment as at 31 March 2025.

Revenue Recognition on expiry of restoration period

The Group has recognised revenue of US$ 23.58 million during the year ended 31 March 2025 following the release of deferred income previously recorded in respect of Annual Take-or-Pay (AToP) payments received under the Gas Sale and Purchase Agreement ("GSPA") with GAIL (India) Limited.

Management has exercised significant judgement in concluding that this deferred income should be recognised as revenue on the basis that:

· The contractual Restoration Period under the GSPA expired on 31 January 2025, at which point the Buyer's rights to offtake Make-Up Gas ceased.

· No further performance obligations remained under the contract after this date.

This judgement reflects management's interpretation of the GSPA and application of IFRS 15, under which revenue is recognised when (or as) performance obligations are satisfied.

Estimates used in the preparation of the consolidated financial statements:

Useful life and residual value of tangible assets

The Group reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period. Specifically, production assets are depreciated on a basis of unit of production (UOP) method which involves significant estimates in respect of the total future production and estimate of reserves. The calculation of UOP rate of depreciation could be impacted to the extent that the actual production in future is different from the forecasted production. During the financial year, the directors determined that no change to the useful lives of any of the property, plant and equipment is required. The carrying amounts of property, plant and equipment have been summarized in note 7.

Recognition of provision for decommissioning cost

As per the PSC, the Group is required to carry out certain decommissioning activities on gas wells. The ultimate decommissioning costs are uncertain and cost estimates can vary in response to many factors including changes to relevant legal requirements, the emergence of new restoration techniques or experience at other production sites. The expected timing and amount of expenditure can also change, for example, in response to changes in reserves or changes in laws and regulations or their interpretation. As a result, there could be adjustments to the provisions established which would affect future financial results. The liabilities estimated in respect of decommissioning provisions have been summarized in note 15.

Impairment testing

As explained above, management carried out impairment testing of property, plant and equipment as on 31 March 2025. An impairment loss is recognized for the amount by which the asset's or cash generating unit's carrying amount exceeds its recoverable amount.

To determine the recoverable amount, management estimates expected future cash flows from the Block and determines a suitable interest rate in order to calculate the present value of those cash flows. In the process of measuring expected future cash flows management makes assumptions about future gross profits. These assumptions relate to future events and circumstances. In most cases, determining the applicable discount rate involves estimating the appropriate adjustment to market risk and the appropriate adjustment to asset-specific risk factors.

The recoverable amount was determined based on value-in-use calculations; basis gas reserves confirmed by an independent competent person. The discount rate calculation is based on the Company's weighted average cost of capital adjusted to reflect post-tax discount rate and amounts to 12.04% p.a.

In line with regulatory expectations for transparent sensitivity disclosures, management has performed scenario-based sensitivity analysis by isolating the impact of key revenue drivers production and price while adjusting the discount rate. The results are as follows:

This approach provides a view of how changes in individual revenue components price or production volume impact on the recoverable amount, while keeping other variables constant.

Deferred tax assets

The assessment of the probability of future taxable income in which deferred tax assets can be utilized is based on the management's assessment, which is adjusted for specific limits to the use of any unused tax loss or credit. The tax rules in the jurisdictions in which the Group operates are also carefully taken into consideration. If a positive forecast of taxable income indicates the probable use of a deferred tax asset, then deferred tax asset is usually recognized in full. The recoverability of deferred tax assets is monitored as an ongoing basis based on the expected taxable income from the sale of gas.

26. CAPITAL MANAGEMENT POLICIES

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

The Group manages the capital structure and adjusts it in the light of changes in economic conditions and the risk characteristics of the underlying assets. The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Debt is calculated as total liabilities (including 'current and non-current liabilities' as shown in the consolidated Statement of Financial Position). Total capital employed is calculated as 'equity' as shown in the consolidated statement of financial position plus total debt.

The gearing ratio has increased in the current year to 99.32% from 74.26% in the prior year, primarily due to a proportionately higher draw-down of loans from a related party. Further, during the current year decrease in gearing ratio can also be attributed to a reduction in equity resulting from the recognition of impairment losses increase in equity

The Group is not subject to any externally imposed capital requirements. There were no changes in the Group's approach to capital management during the year.

27. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

A summary of the Group's financial assets and liabilities by category are mentioned in the table below. The carrying amounts of the Group's financial assets and liabilities recognized at the end of the reporting period are as follows: