Annual accounts - Going Concern25 Sep 2024 07:19
Well the board seem confident - taken from the report:
GOING CONCERN
Production Sharing Contract (PSC) of the Group has expired on 20 August 2024. Further, the contract of the Group with its sole customer will expire on 30 September 2024. At the date of signing the financial statements, considering expiry of above mentioned two contracts and an obligation of the Group to pay current portion of borrowings of US$ 20,575,321 (2022-23: US$ 28,458,200), in line with the accounting and auditing framework, this indicates a material uncertainty that may cast significant doubt on the group's ability to continue as a going concern.
The group has considered following factors relevant to support going concern.
The Group has applied for an extension of the Production Sharing Contract (PSC) which expired on 20 August 2024. The Board is confident that the extension will be received considering that Clause 2.1 of PSC provides that PSC can be extended up to 35 years. Further, the Group is in process of renewing the existing contract with the sole customer (GAIL) for supply of gas which will expire on 30 September 2024. Moreover, the power plant in this region is the customer of GAIL and for running that plant, the supply of gas from the block is essential. The Board is confident that the customer contract will be renewed soon along with PSC extension considering the ongoing discussions with the customer and accordingly, the Group will be able to supply the gas based on a mutually agreed contract.
I guess we wait for confirmation of the extension, customer renewal contract / and new customers - with India in deficit re gas - its good to see our reserves on the up!!!
Lets see how the market reacts but I doubt I'll get my 50p today....
GLA
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