Yinson Annual Report 2021

311 ANNUAL REPORT 2021 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2021 49. Subsequent events (a) On 2 March 2021, Rising Sun Energy (K) Pvt Ltd (“RSEK”), an indirect 80% owned subsidiary of the Company, has accepted a Letter of Award (“LOA”) from NTPC Limited (“NTPC”) for the development of 190MW grid-connected solar photovoltaic power project at the Nokh Solar Park (“Plant”) in Rajasthan, India (“Contract”). Following the LOA, RSEK will enter into a Power Purchase Agreement (“PPA”) to supply 25 years of solar power generated electricity to NTPC. Any extension of the PPA period beyond 25 years shall be through mutual agreement between NTPC and RSEK. The LOA represents a formal agreement and constitutes a binding document between the parties. On 30 March 2021, RSEK has entered into the PPA with NTPC. The effective date of the PPA is 1 April 2021. The salient terms of the Contract are as follows: (i) The term of the PPA will be 25 years from the commercial operation date of the Plant. (ii) The estimated aggregate value of the Contract based on a fixed tariff of INR2.25/kWh, is approximately equivalent to INR27.5 billion (equivalent to RM1.5 billion), subject to the terms and conditions of the LOA and PPA. (iii) Commercial operation of the Plant is scheduled to commence in April 2022. The Contract will not have any effect on the share capital and shareholding structure of the Company. The Contract, however, is expected to contribute positively to the earnings and net assets per share of the Group. (b) On 6March 2020, the Company announced that Globalmariner Offshore Services Sdn. Bhd. (“GMOS”) has commenced an action against the Company, its subsidiary Yinson Energy Sdn. Bhd. (“YESB”), and 9 others (“Defendants”) including TH Heavy Engineering Berhad (“THHE”) and Floatech (L) Ltd (“FLOATECH”) in the Kuala Lumpur High Court by way of Suit No. WA-22NCVC-150-03/2020 dated 3 March 2020 (“Suit”). The Writ of Summons, together with the Statement of Claim in the Suit was ordered to be struck out by an Order of Court dated 31 March 2021, pursuant to a successful application made by the Defendants to strike out the said Writ of Summons and Statement of Claim, with costs ordered against GMOS in favour of the Company, YESB and one of the Company’s directors, Mr. Lim Chern Yuan (who was named as a defendant in the Suit) in respect of the successful application to strike out the said Writ of Summons and Statement of Claim. On 8 April 2021, a Notice of Appeal was filed with the Court of Appeal in Malaysia by GMOS concerning the judgment made against them. The above-mentioned Order of Court and Notice of Appeal are not expected to have any material financial and operational impact on the Group and the Company. 50. Authorisation of financial statements for issue The financial statements for the financial year ended 31 January 2021 were authorised for issue in accordance with a resolution of the Board of Directors on 28 April 2021.