The fair values of financial assets and financial liabilities,
together with the carrying amounts in the Interim condensed
consolidated statement of financial position, are as follows:
Carrying amount Fair value
---------------------------------------- ---------------- ---------------
September 2014 September 2014
---------------------------------------- ---------------- ---------------
Non- current financial assets
Trade and other receivables 3,792 3,792
Equity securities - available-for-sale 22,860 22,860
Loans and receivables 66,195 66,195
Derivative assets 49,604 49,604
Non-current bank deposits 10,346 10,346
---------------- ---------------
Total non-current 152,797 152,797
Current financial assets
Trade and other receivables 170,672 170,672
Equity securities - held for trading 128 128
Debt securities-held for trading 2,421 2,421
Derivative assets 422 422
Loans and receivables 80,253 80,253
Cash and short-term deposits 194,091 194,091
---------------- ---------------
Total current 447,987 447,987
Total 600,784 600,784
---------------- ---------------
Non- current financial liabilities
Trade and other payables 51,093 51,093
Interest bearing loans and borrowings 2,576,970 2,576,970
Interest rate swaps 1,569 1,569
Option premium payable 24,620 24,620
---------------- ---------------
Total non-current 2,654,252 2,654,252
Current financial liabilities
Trade and other payables 310, 997 310,997
Interest bearing loans and borrowings 536,131 536,131
Option premium payable 5,042 5,042
---------------- ---------------
Total current 852,170 852,170
Total 3,506,422 3,506,422
---------------------------------------- ---------------- ---------------
The fair values of financial assets and financial liabilities,
together with the carrying amounts in the Interim condensed company
statement of financial position, are as follows:
Carrying amount Fair value
--------------------------------------- ---------------- ---------------
September 2014 September 2014
--------------------------------------- ---------------- ---------------
Non-current financial assets
Loans and receivables 5,525 5,525
Loans and receivables to subsidiaries 166,068 166,068
Total non-current 171,593 171,593
Current financial assets
Loans and receivables 29 29
Cash and short-term deposits 1,358 1,358
---------------- ---------------
Total current 1,387 1,387
Total 172,980 172,980
---------------- ---------------
Current financial liabilities
Trade and other payables 1,386 1,386
Interest bearing loans and borrowings 100,912 100,912
Total current 102,298 102,298
--------------------------------------- ---------------- ---------------
Fair value hierarchy
The table below analyses recurring fair value measurements for
financial assets and financial liabilities. These fair value
measurements are categorised in to different levels in the fair
value hierarchy based on the inputs to valuation techniques used.
The different levels are defined as follows.
-- Level 1: quoted prices (unadjusted) in active markets for
identical assets or liabilities.
-- Level 2: inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either
directly or indirectly.
-- Level 3: valuation techniques that include inputs for the
asset or liability that are not based on observable market data
(unobservable inputs).
30 September 2014 Level Level Level Total
1 2 3
----------------------------------------- ------ ------- ------- -------
Financial assets measured at fair value
Equity securities - available-for-sale 1,904 - 20,956 22,860
Equity securities - held for trading 128 - - 128
Debt securities-held for trading 2,421 - - 2,421
Derivative assets - 50,026 - 50,026
------ ------- ------- -------
Total 4,453 50,026 20,956 75,435
------ ------- ------- -------
Financial liabilities measured at fair
value
Interest rate swaps - 1,569 - 1,569
Option premium payable - 29,662 - 29,662
------ ------- ------- -------
Total - 31,231 - 31,231
----------------------------------------- ------ ------- ------- -------
The Group recognises transfers between levels of the fair value
hierarchy as of the end of the reporting period during which the
transfer has occurred. During the six-month period ended 30
September 2014, there were no movements between Level 1, Level 2
and Level 3 fair value measurements.
Reconciliation of Level 3 fair value measurements of financial
assets:
30 September 2014 Available-for-sale Total
Unquoted Equities
---------------------------------- ------------------- -------
Opening balance 21,439 21,439
Total gains or losses:
- in income statement - -
- in other comprehensive income (483) (483)
Settlements - -
Transfers into level 3 - -
------------------- -------
Closing balance 20,956 20,956
---------------------------------- ------------------- -------
Total gains or losses for the period shown above, relates to
available for sale securities held at the end of the reporting
period.
Valuation techniques
Level 2 fair values for simple over-the-counter derivative
financial instruments are based on broker quotes. Those quotes are
tested for reasonableness by discounting expected future cash flows
using market interest rate for a similar instrument at the
measurement date. Fair values reflect the credit risk of the
instrument and include adjustments to take account of the credit
risk of the Group entity and counterparty when appropriate.
Level 3 fair values for equity securities-available for sale has
been determined by using Comparable Company Analyses. This is a
relative valuation technique which involves comparing that
company's valuation multiples to those of its peers. The multiples
consider for the valuation is P/B for book value which is then
adjusted for differences that are directly related to the
characteristics of equity instruments being valued such as
discounting factor for size and liquidity of 15%.
Level 3 fair value of the unquoted venture capital units has
been determined using a discounted cash flow model. The valuation
requires management to make certain assumptions about unobservable
inputs to the model, of which the significant unobservable inputs
are disclosed in the table below.
Average growth rate for cash flows in subsequent years
3.00%
Discount rate 11.01%
Apart from the above, forecast cash flows for first five years
is a significant unobservable input. The management regularly
assesses a range of reasonably possible alternatives for those
significant unobservable inputs and determines their impact on the
total fair value. An increase in the forecast cash flows and the
growth rate for cash flows in the subsequent periods would both
lead to an increase in the fair value of the equity instruments. An
increase in the discount rate used to discount the forecast cash
flows would lead to a decrease in the fair value of the units. The
significant unobservable inputs are not interrelated. The fair
value of the units is not significantly sensitive to a reasonable
change in the forecast cash flows or the discount rate, however it
is to a reasonable change in the growth rate.
16. Subsequent Event:
Issue of warrants by KSK Energy Ventures Limited ('KEVL')
Ksk Power Ventur (LSE:KSK)
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Ksk Power Ventur (LSE:KSK)
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