Interim Results

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN

14 August 2015

Mytrah Energy Limited

("Mytrah" or the "Company")

Interim results for the six months ended 30 June 2015

Financial Highlights for the period:

· Revenue of USD 32.59 million, an increase of 10.7% over the comparative period (1H 2014: USD 29.43 million).

· Underlying Earnings before interest, taxes, depreciation and amortisation ("EBITDA") for the period amounted to USD 30.311 million, an increase of 8.2% over the comparative period (1H 2014: USD 28.011 million).

· An EBITDA margin of approximately 93.1%1 (1H 2014: 95.2%1).

· Underlying loss before tax of USD 2.461,2 million (1H 2014: underlying profit before tax USD 5.911,2 million).

· In Indian Rupee terms revenue increased by 14.6%, EBITDA by 12.0%. Broadly in line with increase in weighted average operating capacity.

· Adequate liquidity position comprising of USD 44.9 million cash equivalents and liquid investments and undrawn loan facilities of USD 214.8 million to fund the current projects under construction.

· Added Goldman Sachs, alongside Apollo Funds and Merrill Lynch International, to existing India listed bond facility. Extended this facility to access an additional USD 60 million, bringing total new finance raised under this structure to USD 130 million; USD 70 million in 2014 and USD 60 million in 1H 2015.

· USD 70.5 million raised under bond facility invested in new capacity under construction.

· Secured USD 137.5 million senior loans for 150MW project construction, and, post-period end, secured approval of USD 95 million senior loans for 100 MW additional projects under construction. This brings the total projects with secured finance to 250 MW.

· Completed refinancing of two existing long-term senior loans in operating wind projects, reducing interest rates further, with one tranche now having the lowest rate yet seen by the Company at 10.8%.

Current Operational Highlights:

· 543 MW of revenue generating wind assets.

· 200MW assets in construction on track for the 2016 wind season, with the first 10 MW of this scheduled to be connected to the grid by early in 4Q 2015.

· Began new wind turbine supply relationships with General Electric and Inox.

· Construction underway on an additional 200 MW, bringing total currently in construction to 400MW.

· Signed MOU with Government of Andhra Pradesh for 220MW project

· Post period end, entered into solar power generation through participation in Telangana capacity auction. Early indications are that Mytrah has won a substantial portion of the projects in its 350 MW bid.

1Excluding one-off doubtful advances and liquidated damages ('LD') claims written-off of USD nil (30 June 2014: USD 2.1 million) and non-cash cost relating to employee stock options of USD 0.04 million (30 June 2014: USD 0.51 million). (Refer note 5).

2Adjusted for an exceptional finance costs of USD 0.54 million (30 June 2014: USD nil) incurred upon refinancing of loans in one of the subsidiary. (Refer note 8).

Ravi Kailas, Chairman and CEO said:

"From a standing start just 4.5 years ago, Mytrah has grown to be one of the largest wind independent power producers ("IPPs") in India. The first half of 2015 has seen commissioning of 14.5MW to bring our operating capacity to 543MW and excellent progress on our new projects in construction.

The sanction of senior loans for an additional 100MW brings our fully funded wind construction pipeline to 250MW, 200 MW of which we aim to commission before the wind season in 2016. We have also begun construction of a further 150 MW, and we are making good progress in negotiating the senior debt for this additional capacity.

As part of the capacity expansion, we have formed new relationships with wind turbine manufactures General Electric and Inox Wind. Joining existing suppliers Gamesa, Regen and Suzlon, GE and Inox Wind provide further diversification in our turbine technology and security of supply for our construction pipeline.

Our growing capacity and reputation has also enabled us to attract additional finance; USD 60 million added to our India listed bond in 1H 2015 completes a total of USD 130 million raised since November 2014. I am pleased to welcome Goldman Sachs as one of our investors, joining Apollo Funds and Merrill Lynch International in this most recent financing.

Our 543 MW operating portfolio is performing well technically, with some plants exceeding 99% mechanical availability. The wind season started more slowly than expected, but we have seen improvement post period end and expect that this will continue through the remainder of the year, bringing the full year result broadly in line with our expectations.

The power industry in India continues to develop favourably for Mytrah. A widely publicised Government target, aiming for 170 GW for wind and solar capacity by 2022, has attracted international players to the market, raising the profile of Indian renewables globally.

Along with some other technologies, this target is made up of 60 GW of wind and 100 GW of solar. As the cost of solar has now fallen toward parity with other technologies, we believe that it offers a strong diversification opportunity for Mytrah, provided that it does not compromise our returns. We have therefore participated in a number of state solar bids, most recently in Telangana, where we bid for 350 MW. Following the conclusion of the bidding process, we understand that the Company may have won the rights to connect a substantial portion of the 350 MW, but do not yet have formal confirmation.

We believe that Mytrah's continued access to financing our strong pipeline of development opportunities and our proven execution capability, our strong pipeline of development opportunities will enable the Group to continue to grow rapidly and generate significant value for our shareholders."

For further information please visit www.mytrah.com or contact:

Mytrah Energy Limited

Ravi Kailas / Robert Keith Smith +44 (0)20 3402 5790

Investec Bank plc

Chris Sim / Jeremy Ellis +44 (0)20 7597 5970

Mirabaud Securities LLP

Peter Krens / Rory Scott +44 (0)20 7878 3360

Yellow Jersey PR Limited

Dominic Barretto / Philip Ranger +44 (0)7768 535641

Chairman and CEO's Statement:

I am pleased to announce Mytrah Energy Limited's ("MEL" or the "Company") interim results for the six months period ended 30 June 2015.

Operational and Development Review

Projects in operation:

As at 30 June 2015, Mytrah's portfolio comprises of 543 MW of operating wind farms spread across ten projects in six states. The decision to spread our portfolio across ten different sites rather than two or three larger projects means that we benefit from a substantial 'portfolio effect' across our asset base, limiting the impact of political / regional changes and reducing construction and operational risks for future development.

The portfolio effect also assists in mitigating the impact of wind variations across India. It is notable that in the first half, although overall revenue is lower than expected, the performance of individual locations varies, with winds higher than expected in Karnataka for instance partially offsetting those in Rajasthan which were significantly below.

Projects under construction

Mytrah currently has 400 MW of assets in construction, an increase of 100 MW since YE 2014. Of this, senior debt is secured for 250 MW, with the remaining 150 MW in negotiation.

Vajrakarur 2 Wind Farm (100 MW) in Andhra Pradesh is under active construction. The project is fully financed and construction is well underway, with the substation completed and charged, foundation excavation in progress and wind turbine delivery is scheduled. The project is on track for completion ahead of the 2016 wind season.

Viswa (now Bhesada) Wind Farm (50 MW) in Rajasthan is under active construction. The project is fully financed and construction is well underway, with the substation completed and charged, 75% of the civil works including foundations completed, 16 of 24 turbine sets delivered to the site and 35% of the wind turbines erected. The project is on track for completion ahead of the 2016 wind season and we expect the first 10 MW from this project to be connected to the grid early in 4Q 2015.

Viraj Wind Farm (50 MW) in Maharashtra is under active construction. Negotiations for senior debt are well advanced, but have taken longer than planned. The project will now be commissioned 12 months after finalisation of the senior debt.

Anila (now Nazeerabad) Wind Farm (100 MW) in Telangana State is under active development. The project is fully financed and construction is well underway, with the substation construction 60% completed, civil foundation works due to start in August and wind turbine supply scheduled. The project is on track for around 50% completion ahead of the 2016 wind season.

100MW additional capacity expansion is also under-way, with wind turbine supply secured and financing in advanced negotiation. Project locations are confidential at present.

Additional projects in development

Mytrah's access to new projects comes through our relationships with turbine suppliers, which bring turnkey project opportunities, and from our extensive intellectual property portfolio which has been created by installing wind masts across the most attractive states in India.

The wind data which we have collected provides information about the best locations for future wind farms and we combine this with our knowledge of the local electricity grid and the statutory requirements in each state to determine the best timing and likely returns from each project.

Based on our strategy to maintain diversity in geography, turbine type and off-take arrangements, we then select projects for construction from the pipeline. At present we have 400 MW in construction, with 600 MW of future options ready to build and over 3000MW of additional advanced pipeline opportunities.

Financial Results

A summary of key financial results is set out in the tables below and discussed in this section.

USD Million

Revenue

The Group's revenue for the six months ended 30 June 2015 was USD 32.59 million (H1 2014: USD 29.43 million). An increase of USD 3.16 million despite depreciation in the average exchange rate between the Indian rupee and US dollar from 60.61 to 62.74 from June 2014 to June 2015. These revenues were generated from our portfolio of commissioned projects in the states of Gujarat, Rajasthan, Maharashtra, Tamilnadu, Karnataka and Andhra Pradesh. 

Gross profit

The Group has recorded a gross profit of USD 24.61 million for the period ended 30 June 2015 (H1 2014: USD 24.56 million). The gross margin decreased by 8.0% from 83.5% in H1 2014 to 75.5% in H1 2015 primarily on account of operations and maintenance (O& M) cost of USD 0.89 million (H1 2014: USD nil) incurred during the current period as free O&M period on some projects were completed.

EBITDA

The Group has recorded an underlying EBITDA of USD 30.31 million during the period (H1 2014: USD 28.01 million) representing an increase of USD 2.31 million. Increase in EBITDA is primarily due to incremental revenues earned from capacities commissioned post 30 June 2014.

Financial Results (continued)

Finance cost

Finance cost for the six months ended 30 June 2015 is USD 25.57 million compared with USD 17.28 million during the period ended 30 June 2014. The increase is primarily on account of an increase in the term loans from USD 344.46 million as at 30 June 2014 to USD 419.04 million as at 30 June 2015 as well as expensing of interest on operating assets, which were under construction and capitalised during the six months ended 30 June 2014. Also, during the current period the group incurred a non-recurring finance cost of USD 0.54 million upon refinancing a portion of existing term loans.

Depreciation and amortisation

Depreciation and amortisation for the six months ended 30 June 2015 is USD 7.20 million against USD 4.82 million during the period ended 30 June 2014. The increase in depreciation is mainly on account of an increase in the average operating capacity from 365.9 MW in the previous period to 541.2 MW in the current period.

Profit before tax

At a consolidated level the Group recorded an underlying loss before tax of USD 2.461,2 million during the current period against an underlying profit before tax of USD 5.911,2 million in the corresponding previous period. Loss during the current period is primarily due to low wind patterns effecting the revenues from operating projects during the current period.

Taxation

Tax credit for the six months ended 30 June 2014 was USD 0.53 million (30 June 2014: tax expense of USD 0.54 million). The tax credit / expense is primarily non-cash in nature and represents net deferred tax liability on timing differences accounted during the period.

Earnings per share

Basic and diluted earnings per share for the six months ended 30 June 2015 was USD (1.08) cents (30 June 2014 USD: 1.65 cents).

Going concern

The cash flows generated by the group from operations during the period was USD 24.26 million (2014: USD 12.59 million). As of 30 June 2015, the Group was in a strong liquidity position having USD 44.9 million in cash equivalents and liquid investments, and USD 214.8 million in undrawn long-term loan facilities. The Directors have considered the Group's cash position as at the date of approving these condensed consolidated interim financial statements. The Directors also continue to monitor the cash flows from time to time including the short term and long term liquidity position. At the balance sheet date, the Company has unused long-term credit facilities to offset the short-term loans taken. The Directors have a reasonable expectation that the Group has adequate resources to continue its operational existence for a foreseeable future and thus adopt going concern basis of accounting in preparing these condensed consolidated interim financial statements.

Summary

The first-half of 2015 has seen Mytrah consolidate its position as a leading IPP with operating capacity crossing the landmark 500MW. I believe that our continued development has the potential to transform the Group by generating significant shareholder value and enabling greater visibility of our asset roll-out plans during the next two years. Through our access to finance, the quality of our people and third party partnerships as well as our commitment to building high quality assets at a competitive cost, we will continue to be a utility scale IPP with a sustainable long-term development pipeline, and generate strong and predictable cash flows.

Ravi Kailas

Chairman and CEO

1Excluding one-off doubtful advances and LD claims written-off of USD nil (30 June 2014: USD 2.1 million) and non-cash cost relating to employee stock options of USD 0.04 million (30 June 2014: USD 0.51 million). (Refer note 5).

2Adjusted for one-off finance costs of USD 0.54 million (30 June 2014: USD nil) incurred upon refinancing of loans in one of the subsidiary. (Refer note 8)

Independent review report to Mytrah Energy Limited

We have been engaged by Mytrah Energy Limited ("the Company") to review the condensed consolidated set of interim financial statements in the half-yearly financial report for the six months ended 30 June 2015 which comprises the condensed consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement of financial position, condensed consolidated statement of changes in equity, condensed consolidated cash flow statement and related notes 1to 33. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with our engagement letter dated 4 September 2014 and International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to it in an independent review 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, for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules of the London Stock Exchange.

As disclosed in Note 3, the annual financial statements of the company are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of interim financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of interim financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom and Ireland. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of interim financial statements in the half-yearly financial report for the six months ended 30 June 2015 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union.

13 August 2015

KPMG Audit LLC

Chartered Accountants

Heritage Court

41 Athol Street

Douglas

Isle of Man

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

These financial statements were approved by the Board of Directors and authorised for use on 13 August 2015.

Signed on behalf of the Board of Directors by:

Ravi Kailas Russell Walls

Chairman and CEO Director

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2015

1. General information

Mytrah Energy Limited ("MEL" or the "Company") is a non-cellular company, liability limited by shares, incorporated on 13 August 2010 under the Companies (Guernsey) Law, 2008 and is admitted to trading on Alternate Investment Market, a market operated by the London Stock Exchange plc. The address of the registered office is PO Box 156, Frances House, Sir William Place, St Peter Port, Guernsey, GY1 4EU. The Company has the following subsidiary undertakings, (together the "Group"), all of which are directly or indirectly held by the Company, for which condensed consolidated interim financial statements are being prepared, as set out below:

The principal activity of the Group is to own and operate wind energy farms as a leading independent power producer ("IPP") and to engage in the sale of energy to the Indian market through the Company's subsidiaries.

During the previous year, MEIL has entered into an agreement with MVUPL for transfer of its wind power business. Accordingly, during the current period the assets and liabilities relating to wind power generation business segment in MEIL are transferred to MVUPL on fulfilment of conditions specified in the agreement.

Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2015 (continued)

2. Adoption of new and revised standards and interpretations

2.1 New and amended standards adopted during the period:

The Group has adopted the following new standards and amendments, including any consequential amendments to other standards with date of initial application of 1 January 2015:

Based on the Company's current business model and accounting policies the adoption of these standards or interpretations did not have a material impact on the financial statements of the Group.

2.2 New standards and interpretations not yet adopted:

At the date of authorisation of these condensed consolidated interim financial statements, the following standards and interpretations, have not been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been endorsed by the EU). The Group is in the process of evaluating the impact of the following new standard on its consolidated financial statements.

IFRS 9- Financial instruments

IFRS 9, published in July 2014, replaces the existing guidance in IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 includes revised guidance on the classification and measurement of financial instruments, including a new expected credit loss model for calculating impairment on financial assets, and the new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from IAS 39. IFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption period.

IFRS 15, Revenue from Contracts with Customers

IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognized. It replaces existing revenue recognition guidance, including IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC 13 Customer loyalty Programmes. IFRS 15 is effective for annual reporting periods beginning on or after 1 January 2017, with early adoption permitted.

Further, the following new or amended standards are not expected to have a significant impact on the Group's condensed consolidated interim financial statements:

· IFRS14: Regulatory deferral accounts.

· Accounting for acquisitions of interest in Joint Operations (amendments to IFRS 11)

· Clarification of acceptable methods of depreciation and amortisation ((amendments to IAS 16 and IAS 38)

· Defined benefit plans: Employee contributions (Amendments to IAS 19)

Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2015 (continued)

3 Significant accounting policies

a) Basis of preparation

The condensed consolidated interim financial statements of the Group have been presented for the six months ended 30 June 2015 in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union.

The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2014, which have been prepared in accordance with International Financial Reporting Standards ("IFRS's") as adopted by the European Union. The condensed consolidated interim financial statements have been reviewed, not audited and were approved for issue by the Board on 13 August 2015. The financial information contained in this report does not constitute statutory accounts as defined by sections 243-245 of the Companies (Guernsey) Law 2008. A copy of the Group's audited statutory accounts for the year ended 31 December 2014 can be obtained from the Company's website or writing to the Company Secretary. The independent auditor's report on those accounts was unqualified and did not include a reference to any matters which the auditors drew attention by way of emphasis without qualifying the report and did not contain a statement under 263 (3) of the Companies (Guernsey) Law 2008. The condensed consolidated interim financial statements have been prepared on the basis of accounting policies set out in the annual report for the year ended 31 December 2014.

Refer note 2 for the new accounting standards/interpretations adopted with an initial application of 1 January 2015.

b) Going concern

The Directors have considered the financial position of the Group, its cash position and the undrawn credit facilities as at the date of these condensed consolidated interim financial statements. The Directors have, at the time of approving the condensed consolidated interim financial statements, a reasonable expectation that the Group has adequate resources to continue its operational existence for a foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing these condensed consolidated interim financial statements.

c) Foreign currencies

These condensed consolidated interim financial statements are presented in USD, which is the presentational currency of the Company, as the financial statements will be used by international investors and other stakeholders as the Company's shares are listed on AIM. The functional currency of the parent company is Pound Sterling ("GBP"). The functional currency of all subsidiaries listed in note 1 is Indian Rupee (INR), except for BVML, MESPL, MECPL and CCSPL which are determined as USD.

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in income statement in the period. For the purposes of presenting condensed consolidated interim financial statements, the assets and liabilities of the Group's foreign operations are translated into US dollars (USD) using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in equity.

The exchange rates used to translate the financial information of the subsidiaries into USD were as follows:

Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2015 (continued)

3. Significant accounting policies (continued)

d) Use of estimates and judgments

In preparing these condensed consolidated interim financial statements, management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied during the year ended 31 December 2014, with the exception of the new standards adopted as per note 2.

e) Measurement of fair value

A number of the Group's accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the CFO.

4. Revenue

An analysis of the Group's revenue is as follows:

Generation based incentive are recognised on fulfilment of eligibility criteria prescribed under Indian Renewable Energy Development Agency Limited ('IREDA') - Generation Based Incentives Scheme ("GBI").

5. Expenses by nature

(Loss) / profit for the period has been arrived at after charging:

Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2015 (continued)

6. Finance income

7. Finance costs

1Amounts included in the cost of qualifying assets during the period arose on borrowings sanctioned for the purpose of financing construction of a qualifying asset and it represents the actual borrowing costs incurred on those borrowings, calculated using the effective interest rate method.

8. Other finance costs on refinancing

Loan refinancing costs represents the cost of prepayment and unamortized transaction costs incurred upon refinancing the existing senior term loans.

9. Income tax expense

The Company is exempt from Guernsey income tax under the Income Tax (Exempt bodies) (Guernsey) Ordinance, 1989 and is subject to an annual fee of USD 962. As such, the Company's tax liability is zero. However considering that the Company's operations are entirely based in India, the effective tax rate of the Group of 17.5% has been computed based on the current tax rates prevailing in India.

Indian companies are subject to corporate income tax or Minimum Alternate Tax ("MAT"). If MAT is greater than corporate income tax then MAT is levied. The Company has recognised MAT of USD 965,115 (30 June 2014: USD 146,113) as MAT is greater than corporate income tax for the current period.

Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2015 (continued)

9. Income tax expense (continued)

Income tax expense recognised for the period is reconciled to (loss) / profit before tax per the income statement as follows:

10. Earnings per share

Basic earnings per share is calculated by dividing profit attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period.

During the current period, there were no potential dilutive instruments for the computation of diluted earnings per share.

11. Intangible assets

Intangible assets primarily comprise of application software and is amortised over four years.

Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2015 (continued)

12. Property, plant and equipment

Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2015 (continued)

12. Property Plant and equipment (continued)

 An amount of USD 8,956,485 (30 June 2014: USD 9,555,988) pertaining to interest on borrowings was capitalised as the funds were used for the construction of qualifying assets (refer note 7).

Depreciation amounting to USD 163,240 (30 June 2014: USD 269,925) has been capitalised as it relates to wind farm assets under course of construction.

Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2015 (continued)

13. Other non-current assets

Deposits mainly comprise of refundable security deposits placed with related parties towards usage of land and power evacuation facilities for a period of 20 years.

Capital advances represent advance payments made to suppliers and related parties for the construction of wind farm assets, as part of long-term construction and service contracts.

Prepayments primarily relate to amounts paid in advance towards lease rentals for land and has been taken on lease basis from the suppliers of wind turbine generators and related parties for a period ranging upto 20 years and are renewable provided the main lease is renewed by the government authorities and other parties.

14. Other investments

1Represents margin money and fixed deposits placed with banks and financial institutions with maturity period greater than one year.

15. Deferred tax assets

The following are the major components of deferred tax liabilities and assets recognised by the Group and movements thereon during the current period.

Deferred tax assets and liabilities are offset where the Group has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) recognized in the consolidate balance sheet:

Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2015 (continued)

16. Trade receivables

Trade receivables disclosed above are classified as loans and receivables in accordance with IAS 32 and are therefore measured at amortised cost. Trade receivables held by the Group are non-interest bearing and were not collectively impaired or written off.

Trade receivables include amounts which are past due at the reporting date but against which the Group has not recognised any allowance for doubtful receivables because there has not been a significant change in credit quality and the amounts are still recoverable. The average age of the receivables was 87 days during the period ended 30 June 2015 (31 December 2014: 64 days). The maximum exposure to credit risk at the reporting date is the carrying value of each customer.

The fair value of trade receivables approximates their carrying amounts largely due to the short-term maturities of these instruments and hence management considers the carrying amount of trade receivables to be approximately equal to their fair value. As at 30 June 2015, the Group has 23 customers (31 December 2014: 23 customers).

17. Other current assets

Prepayments primarily relate to amounts paid in advance for lease rentals for land and power evacuation facilities.

Accrued income primarily represents amounts receivable from the customer on the sale of electricity and the amount recoverable from the Indian Renewable Energy Development Authority ("IREDA") as generation based incentive but not billed for as at 30 June 2015.

Other receivables primarily comprises of advance given to vendors amounting to USD 2,943,816 (31 December 2014: USD 696,536).

18. Cash and bank balances

Bank deposits include margin money deposits of USD 12,948,360 (31 December 2014: 8,560,694) placed with banks as security margin against loans taken, letter of credits and bank guarantees issued by banks and financial institution.

Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2015 (continued)

19. Borrowings

Amounts due for settlement within 12 months -USD 32,165,167 (31 December 2014: USD 57,426,521)

Amounts due for settlement after 12 months - USD 531,348,355 (31 December 2014: USD 398,829,925)

1. The Company's subsidiary, Mytrah Energy (India) Limited ("MEIL") has issued non-convertible bonds (NCBs) for an amount of ~ USD 113.3 million (INR 742.4 million) primarily to finance the equity requirement for wind farm projects under construction. The NCBs are listed on the wholesale debt segment of Bombay Stock Exchange, India. The NCBs are repayable at the end of fifth anniversary from the draw-down date and carry a cash coupon of 12% per annum payable on semi-annual basis.

The NCBs are secured by collateral support in the form of pledge of 100% of the MEIL's shares held by Bindu Vayu Mauritius Limited ("BVML"), 100% of the CCPS held by BVML in MEIL and pledge of equity shares held by MEIL in MVUPL (48.99%), MVPPL (48.99%), MVKPL (48.99%), MVBPL (99.98%) and MVMPL (18.99%). Further, hypothecation by way of first and exclusive charge over the monies lying in credit therein from time to time, and by way of first charge over all receivables arising from the loans disbursed by the MEIL to MVBPL.

As part of financing arrangement, the Group has incurred an amount of USD 1,118,071 as arrangement fees. The Group accounted these costs as transaction cost under IAS 39 and are amortised over the term of NCBs using effective interest rate method. The carrying amount of the liability measured at amortised cost is USD 113,353,871 (31 December 2014: 60,838,129)

During the year 2014, the Group has issued 8,612,412 warrants to the NCBs investors. These warrants provide an option to the investors to purchase an equivalent number of ordinary shares in Mytrah Energy Limited at a fixed price of GBP 0.7729 based on the Company's share price traded before the day immediately preceding the exercise date of the warrant. The fair value of the warrants as at 31 December 2014 amounted to USD 1,703,053 and was recognised accordingly as derivative financial liability.

Further on 30 March 2015, the Group has replaced the warrants issued in 2014 by issuing 11,439,762 new warrants to the investors. These new warrants provide an option to the investors to purchase an equivalent number of ordinary shares in Mytrah Energy Limited at a fixed price of GBP 0.7729. Accordingly the derivative financial liability of USD 1,703,053 relating to existing 8,612,412 warrants has been derecognized during the current period and the fair value of the 11,439,762 warrants amounting to USD 2,117,528 is recognised as equity.

2. During 2012, the Company's subsidiary, MEIL has issued 3,333,333 compulsory convertible debentures ("CCDs") at INR 300 (~ USD 5.71) each to PTC India Financial Services Limited (PTC) including any of its affiliates (the "Investor") amounting to USD 18,285,211 under an agreement between the Group and PTC. The purpose of this is to fund the capital projects of the Group. The following are the significant terms in relation to the CCDs:

· The CCDs carry a fixed rate of interest payable quarterly in arrears on the principal amount of the CCDs outstanding.

· The CCDs, along with unpaid interest, if any, mandatorily convert into such number of equity shares of MEIL at the end of 49 months from the date of initial disbursement so as to provide the investor a stated rate of return.

· The CCDs are secured by collateral support in the form of pledge of 48.98% shares of Bindu Vayu Urja Private Limited ("BVUPL") held by MEIL.

Further, MEIL has entered into an option agreement with PTC on the same date whereby PTC can put the CCDs (the "put option") or alternatively, MEIL can call the CCDs (the "call option") in exchange for cash providing PTC a stated rate of return. The call option can be exercised any time from the date of issue whereas the put option can be exercised over a period beginning from 41 months to 47 months from the date of issue of CCDs.

Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2015 (continued)

19. Borrowings (continued)

3. During 2011, MEIL has issued 5,000,000 compulsory convertible debentures ("CCDs") at INR 300 (~ USD 6) each to IDFC including any of its affiliates under an agreement between the Group and IDFC. The purpose of this is to fund the capital projects of the Group. The CCDs carry a fixed rate of interest payable quarterly in arrears on the principal amount of the CCDs outstanding. The CCDs are secured by collateral support in the form of pledge of shares held by Bindu Urja Capital Inc (BUCI) in the Company, certain non-disposal undertakings by the Company and an irrevocable and unconditional corporate guarantee by the Company to IDFC.

Further, the Company has entered into an option agreement with IDFC, whereby IDFC can put the CCDs (the "put option") or alternatively, the Group can call the CCDs (the "call option") in exchange for cash providing IDFC a stated rate of return. The call option can be exercised any time after 18 months from the date of issue whereas the put option can be exercised over a period beginning from 36 months to 48 months from the date of issue of CCDs.

In accordance with the terms of the option agreement with IDFC, the Company has exercised the call option on the CCDs and accordingly has redeemed the entire CCDs in three tranches.

4. The Group has drawn down the term loan facility with banks and financial institutions to finance the construction of wind farm assets. The carrying amount of the liability measured at amortised cost is USD 419,046,418 (31 December 2014: USD 339,862,736). The repayment terms of the term loans range from 12 to 14 years. In compliance with the terms of the loan agreement, the Group has created a charge on all project movable, immovable properties, cash flows, receivables and revenues in favour of banks and financial institutions.

Further, the loan drawn down by MVUPL is secured by way of first charge on the pledge of shares held by MEIL in the equity shares representing 51% of the total paid up equity share capital of the MVUPL. The loan drawn down by BVUPL and MVPPL is secured by way of first charge on the pledge of shares held by the MEIL in the equity shares representing 51% of the total paid-up equity share capital of BVUPL and MVPPL. The loans drawn down by MVIPL, MVKPL and MVMPL is secured by way of first charge on the pledge of shares held by the MEIL in the equity shares representing 51%, 51% and 70% of the total paid-up equity share capital of MVIPL, MVKPL and MVMPL respectively. The loan drawn by MEL is secured by irrevocable and unconditional guarantee from BVML.

5. The working capital loan facilities are secured by way of first charge and hypothecation of entire immovable properties pertaining to the respective projects, both present and future, including movable plant and machinery, machinery spares, tools, accessories, entire project cash flows, receivables, book debts and revenues of the Group. The working capital facilities relating to wind farm development activities are secured by way of first pari-passu charge on current assets related to wind farm development activity. The facilities are repayable on a yearly rollover basis and carries interest in the range of 11% to 13.5% per annum.

Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2015 (continued)

20. Trade and other payables