form40a.htm
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
_________________________________________________
FORM 40-F/A
(Amendment No. 1)

[    ]  REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934

[ X ]  ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2014
 
Commission File Number:  001-35400

JUST ENERGY GROUP INC.
(Exact name of Registrant as specified in its charter)

Canada
(Province or other Jurisdiction of
Incorporation or Organization)
 
4924
(Primary Standard Industrial
Classification Code Number)
 
Not Applicable
(I.R.S. Employer Identification No.)
 
6345 Dixie Road, Suite 200
Mississauga, Ontario, Canada L5T 2E6
(905) 795-4206
(Address and telephone number of Registrant's principal executive offices)
 
Corporation Service Company
1090 Vermont Avenue N.W.
Washington DC 20005
(800) 927-9800
 (Name, address (including zip code) and telephone number
(including area code) of agent for service in the United States)
_________________________________________________

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of Each Class
 
Name of Each Exchange on Which Registered
Common Shares, No Par Value
 
New York Stock Exchange
 
Securities registered or to be registered pursuant to Section 12(g) of the Act:
None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
None
For annual reports, indicate by check mark the information filed with this Form:

[X]  Annual information form
 
[X]  Audited annual financial statements

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report:
 
The Registrant had 143,751,476 Common Shares outstanding as at March 31, 2014

    Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
 
Yes       X     
 
No _______

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).
 
Yes  _______
 
No _______

 
 

 
 
Explanatory Note
 
On May 30, 2014, Just Energy Group Inc. ("the Registrant") filed its annual report on Form 40-F for the fiscal year ended March 31, 2014 (the "Annual Report"). The Annual Report inadvertently omitted the following reports: (i) Management's responsibility for financial reporting; (ii) Management's report on internal control over financial reporting; and (iii) Independent auditors' reports of registered public accounting firm, each dated May 14, 2014, to be included in the Annual Report as part of Exhibit 1.3 – Audited Consolidated Financial Statements for the year ended March 31, 2014. These reports are being filed herewith, together with the Audited Consolidated Financial Statements for the year ended March 31, 2014 and the consent of Ernst & Young LLP, as well as certifications under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002.

Other than as expressly set forth above, this amendment does not, and does not purport to, update or restate the information in any Item of the Annual Report or reflect any events that have occurred after the Annual Report was filed. The filing of this amendment shall not be deemed an admission that the Annual Report, when filed, included any untrue statement of a material fact or omitted to state a material fact necessary to make a statement therein not misleading.
 

 
 

 

UNDERTAKING AND CONSENT TO SERVICE OF PROCESS
 
A.
Undertaking
 
The Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the SEC staff, and to furnish promptly, when requested to do so by the SEC staff, information relating to the securities in relation to which the obligation to file an annual report on Form 40-F arises or transactions in said securities.
 
B.
Consent to Service of Process
 
The Registrant has previously filed with the SEC a Form F-X in connection with its common shares. Any change to the name or address of the agent for service of process shall be communicated promptly to the SEC by an amendment to the Form F-X.
 
EXHIBITS

The following exhibits are filed as part of this Annual Report:

Number
 
Document
     
1.1*
 
Annual Information Form for the year ended March 31, 2014
     
1.2*
 
Management's Discussion and Analysis of Financial Condition and Results of Operations for the year ended March 31, 2014
     
1.3**
 
Audited Consolidated Financial Statements for the year ended March 31, 2014, prepared in accordance with international financial reporting standards as issued by the International Accounting Standards Board, including the report of the auditors thereon
     
23.1**
 
Consent of Ernst & Young  LLP
     
31.1**
 
Certification of the CEOs and CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
32.1**   
 
Certification of the CEOs and CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
     
*   Previously filed
** Filed herewith

 
 

 
 
SIGNATURE
 
Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereto duly authorized.
 
     
JUST ENERGY GROUP INC.
           
           
Dated: June 4, 2014
 
By:  
/s/ Beth Summers
 
     
Name:  
Beth Summers
 
     
Title:
Chief Financial Officer
 



 

 
 

 

EXHIBIT INDEX


Number
 
Document
     
1.1*
 
Annual Information Form for the year ended March 31, 2014
     
1.2*
 
Management's Discussion and Analysis of Financial Condition and Results of Operations for the year ended March 31, 2014
     
1.3**
 
Audited Consolidated Financial Statements for the year ended March 31, 2014, prepared in accordance with international financial reporting standards as issued by the International Accounting Standards Board, including the report of the auditors thereon
     
23.1**
 
Consent of Ernst & Young  LLP
     
31.1**
 
Certification of the CEOs and CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
32.1**    
 
Certification of the CEOs and CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
     
*   Previously filed
** Filed herewith
 
ex1_3.htm
 
Exhibit 1.3
 
Management’s responsibility for financial reporting
 
The accompanying consolidated financial statements of Just Energy Group Inc. and all the information in this annual report are the responsibility of management and have been approved by the Board of Directors.
 
The consolidated financial statements have been prepared by management in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. The consolidated financial statements include some amounts that are based on estimates and judgments. Management has determined such amounts on a reasonable basis in order to ensure that the consolidated financial statements are presented fairly, in all material respects. Financial information presented elsewhere in this annual report has been prepared on a consistent basis with that in the consolidated financial statements.
 
Just Energy Group Inc. maintains systems of internal accounting and administrative controls. These systems are designated to provide reasonable assurance that the financial information is relevant, reliable and accurate and that the Company assets are properly accounted for and adequately safeguarded.
 
The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the consolidated financial statements. The Board carries out this responsibility principally through its Audit Committee.
 
The Audit Committee is appointed by the Board of Directors and is composed entirely of non-management directors. The Audit Committee meets periodically with management and the external auditors, to discuss auditing, internal controls, accounting policy and financial reporting matters. The committee reviews the consolidated financial statements with both management and the external auditors and reports its findings to the Board of Directors before such statements are approved by the Board.
 
The consolidated financial statements have been audited by Ernst & Young LLP, the external auditors, in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States) on behalf of the shareholders. The external auditors have full and free access to the Audit Committee, with and without the presence of management, to discuss their audit and their findings as to the integrity of the financial reporting and the effectiveness of the system of internal controls.
 
On behalf of Just Energy Group Inc.

 
   
James Lewis
 
Deborah Merril
 
Beth Summers
Co-Chief Executive Officer
 
Co-Chief Executive Officer
 
Chief Financial Officer
Toronto, Canada
May 14, 2014
 
 
 
 

 
 
Management’s report on internal control over financial reporting
 
The management of Just Energy Group (“the Company”) is responsible for establishing and maintaining adequate internal controls over financial reporting, and have designed such control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.
 
Management has used the Internal Control – Integrated Framework to evaluate the effectiveness of internal control over financial reporting, which is a recognized and suitable framework developed by the Committee of Sponsoring Organizations of the Treadway Commission (1992 framework) (COSO). Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 
Management has evaluated the design and operation of the Company’s internal control over financial reporting as of March 31, 2014, and has concluded that such internal control over financial reporting is effective.
 
Ernst & Young LLP, the independent auditors appointed by the shareholders of the Company who have audited the consolidated financial statements, have also audited internal control over financial reporting and have issued their report on the following page of this annual report.

 
   
James Lewis
 
Deborah Merril
 
Beth Summers
Co-Chief Executive Officer
 
Co-Chief Executive Officer
 
Chief Financial Officer
Toronto, Canada
May 14, 2014
 

 
 

 

Independent auditors’ report of registered
public accounting firm
 
To the Shareholders of Just Energy Group Inc.
 
We have audited the accompanying consolidated financial statements of Just Energy Group Inc., which comprise the consolidated statements of financial position as at March 31, 2014 and 2013, the consolidated statements of income, comprehensive income, shareholders’ deficit and cash flows for the years ended March 31, 2014 and 2013, and a summary of significant accounting policies and other explanatory information.
 
 
MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
 
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
 
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
 
We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.
 
OPINION
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Just Energy Group Inc. as at March 31, 2014 and 2013, and its financial performance and its cash flows for the years ended March 31, 2014 and 2013, in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.
 
OTHER MATTER
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Just Energy Group Inc.’s internal control over financial reporting as of March 31, 2014, based on the criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (1992 framework), and our report dated May 14, 2014, expressed an unqualified opinion on Just Energy Group Inc.’s internal control over financial reporting.
 
Chartered Accountants
Licensed Public Accountants
Toronto, Canada
May 14, 2014
 

 
 

 
 
INDEPENDENT AUDITORS' REPORT OF REGISTERED
PUBLIC ACCOUNTING FIRM


To the Shareholders of Just Energy Group Inc.

We have audited Just Energy Group Inc.'s internal control over financial reporting as of March 31, 2014, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (1992 framework) [the "COSO criteria"]. Just Energy Group Inc.'s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying management certification report on internal control over financial reporting. Our responsibility is to express an opinion on Just Energy Group Inc.'s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that: [1] pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; [2] provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and [3] provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
 
 
 

 
- 2 -
 
 
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Just Energy Group Inc. maintained, in all material respects, effective internal control over financial reporting as of March 31, 2014, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated statements of financial position of Just Energy Group Inc. as at March 31, 2014 and 2013, and the consolidated statements of income, comprehensive income, shareholders' deficit and cash flows for the years ended March 31, 2014 and 2013, and our report dated May 14, 2014 expressed an unqualified opinion thereon.


 
Toronto, Canada, May 14, 2014.
 
 
 

 
 
JUST ENERGY GROUP INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT
(in thousands of Canadian dollars)

 
 
Notes
   
March 31, 2014
   
March 31, 2013
 
ASSETS
 
 
   
 
   
 
 
Non-current assets
 
 
   
 
   
 
 
Property, plant and equipment
    5     $ 176,720     $ 258,003  
Intangible assets
    6       404,928       447,333  
Contract initiation costs
            75,731       58,446  
Other non-current financial assets
    13       31,696       31,305  
Non-current receivables
            11,175       11,046  
Investments
    11       9,224       9,000  
Deferred tax asset
    18       1,676       24,858  
 
            711,150       839,991  
Current assets
                       
Inventory
    8       9,205       6,073  
Gas delivered in excess of consumption
            7       5,224  
Gas in storage
            2,387       11,051  
Current trade and other receivables
            426,971       315,551  
Accrued gas receivables
            48,634       33,989  
Unbilled revenues
            170,661       129,166  
Prepaid expenses and deposits
            21,699       15,874  
Other current financial assets
    13       103,502       33,005  
Corporate tax recoverable
            9,754       9,761  
Restricted cash
    7       12,017       13,320  
Cash and cash equivalents
            20,401       38,498  
 
            825,238       611,512  
Assets classified as held for sale
    10       106,262       77,439  
 
            931,500       688,951  
TOTAL ASSETS
          $ 1,642,650     $ 1,528,942  
 
                       
DEFICIT AND LIABILITIES
                       
Deficit attributable to equity holders of the parent
                       
Deficit
          $ (1,294,987 )   $ (1,300,280 )
Accumulated other comprehensive income
    14       71,997       47,155  
Shareholders’ capital
    15       1,033,557       1,018,082  
Equity component of convertible debentures
            25,795       25,795  
Contributed surplus
            65,569       70,893  
Shareholders’ deficit
            (98,069 )     (138,355 )
 
                       
Non-controlling interest
    12       6,427       (702 )
TOTAL DEFICIT
            (91,642 )     (139,057 )
 
                       
Non-current liabilities
                       
Long-term debt
    17       930,027       795,224  
Provisions
    19       3,760       3,773  
Deferred lease inducements
            813       1,044  
Other non-current financial liabilities
    13       56,297       85,380  
Deferred tax liability
    18       32,935       31,327  
 
            1,023,832       916,748  
Current liabilities
                       
Trade and other payables
            485,471       301,820  
Accrued gas payable
            34,589       28,476  
Deferred revenue
            82       13,017  
Income taxes payable
            6,280       5,143  
Current portion of long-term debt
    17       51,999       162,474  
Provisions
    19       3,052       3,063  
Other current financial liabilities
    13       77,135       159,819  
 
            658,608       673,812  
Liabilities relating to assets classified as held for sale
    10       51,852       77,439  
 
            710,460       751,251  
TOTAL LIABILITIES
            1,734,292       1,667,999  
TOTAL DEFICIT AND LIABILITIES
          $ 1,642,650     $ 1,528,942  
 
                       
Commitments and Guarantees (Note 28)
                       
See accompanying notes to the consolidated financial statements
         

 
1.

 
 
JUST ENERGY GROUP INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED MARCH 31
(in thousands of Canadian dollars, except where indicated and per share amounts)

 
 
Notes
   
2014
   
2013
 
CONTINUING OPERATIONS
 
 
   
 
   
 
 
SALES
    21     $ 3,611,058     $ 3,011,178  
COST OF SALES
    20(b)       3,045,459       2,487,074  
GROSS MARGIN
            565,599       524,104  
EXPENSES
                       
Administrative expenses
            139,359       137,333  
Selling and marketing expenses
            200,004       220,499  
Other operating expenses
    20(a)       105,898       133,555  
 
            445,261       491,387  
Operating profit before the following
            120,338       32,717  
Finance costs
    17       (90,769 )     (74,000 )
Change in fair value of derivative instruments
    13       186,142       719,575  
Other income
            2,921       4,005  
Income before income taxes
            218,632       682,297  
Provision for income taxes
    18       52,440       86,385  
PROFIT FROM CONTINUING OPERATIONS
          $ 166,192     $ 595,912  
 
                       
DISCONTINUED OPERATIONS
                       
Loss from discontinued operations
    10       (29,251 )     (71,289 )
PROFIT FOR THE YEAR
          $ 136,941     $ 524,623  
 
                       
Attributable to:
                       
Shareholders of Just Energy
          $ 135,907     $ 530,308  
Non-controlling interest
    12       1,034       (5,685 )
PROFIT FOR THE YEAR
          $ 136,941     $ 524,623  
 
                       
 
                       
Earnings per share from continuing operations
    23                  
Basic
          $ 1.16     $ 4.26  
Diluted
          $ 1.12     $ 3.65  
 
                       
Loss per share from discontinued operations
                       
Basic
          $ (0.17 )   $ (0.50 )
Diluted
          $ (0.17 )   $ (0.50 )
 
                       
Earnings per share available to shareholders
    23                  
Basic
          $ 0.95     $ 3.79  
Diluted
          $ 0.94     $ 3.27  
 
                       
See accompanying notes to the consolidated financial statements
 

 
2.

 
 
JUST ENERGY GROUP INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED MARCH 31
(in thousands of Canadian dollars)

 
 
Notes
   
2014
   
2013
 
Profit for the year
 
 
    $ 136,941     $ 524,623  
 
 
 
                 
 
 
 
                 
Other comprehensive income (loss) to be reclassified to profit or loss in subsequent years:
    14                  
 
                       
Unrealized gain on translation of foreign operations from continuing operations
            27,287       3,232  
 
                       
Unrealized gain on translation of foreign operations from discontinued operations
            2,556       75  
                         
Amortization of deferred unrealized gain on discontinued hedges, net of income taxes of $207 (2013 - $5,479)
            (5,001 )     (26,445 )
 
                       
Other comprehensive income (loss) to be reclassified to profit or loss in subsequent years, net of tax
            24,842       (23,138 )
 
                       
Total comprehensive income for the year, net of tax
          $ 161,783     $ 501,485  
 
                       
Total comprehensive income attributable to:
                       
 
                       
Shareholders of Just Energy
          $ 160,749     $ 507,170  
Non-controlling interest
            1,034       (5,685 )
 
                       
Total comprehensive income for the year, net of tax
          $ 161,783     $ 501,485  
 
                       
See accompanying notes to the consolidated financial statements
 

 
3.

 
 
JUST ENERGY GROUP INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT
FOR THE YEARS ENDED MARCH 31
(in thousands of Canadian dollars)

 
 
Notes
   
2014
   
2013
 
ATTRIBUTABLE TO THE SHAREHOLDERS
 
 
   
 
   
 
 
Accumulated earnings
 
 
   
 
   
 
 
Accumulated earnings, beginning of year
 
 
    $ 87,496     $ (442,812 )
Loss on acquisition of non-controlling interest
 
 
      (7,185 )     -  
Profit for the year, attributable to shareholders
 
 
      135,907       530,308  
Accumulated earnings, end of year
 
 
      216,218       87,496  
 
 
 
                 
DIVIDENDS
 
 
                 
Dividends, beginning of year
 
 
      (1,387,776 )     (1,209,376 )
Dividends
    27       (123,429 )     (178,400 )
Dividends, end of year
            (1,511,205 )     (1,387,776 )
DEFICIT
          $ (1,294,987 )   $ (1,300,280 )
 
                       
ACCUMULATED OTHER COMPREHENSIVE INCOME
    14                  
Accumulated other comprehensive income, beginning of year
          $ 47,155     $ 70,293  
Other comprehensive income (loss)
            24,842       (23,138 )
Accumulated other comprehensive income, end of year
          $ 71,997     $ 47,155  
 
                       
SHAREHOLDERS’ CAPITAL
    15                  
Shareholders’ capital, beginning of year
          $ 1,018,082     $ 993,181  
Share-based compensation awards exercised
            7,240       3,320  
Shares issued (cancelled)
            -       7  
Dividend reinvestment plan
            8,235       21,574  
Shareholders’ capital, end of year
          $ 1,033,557     $ 1,018,082  
 
                       
EQUITY COMPONENT OF CONVERTIBLE DEBENTURES
                       
Balance, beginning of year
          $ 25,795     $ 25,795  
Balance, end of year
          $ 25,795     $ 25,795  
 
                       
CONTRIBUTED SURPLUS
                       
Balance, beginning of year
          $ 70,893     $ 62,147  
Add:  Share-based compensation awards
    20(a)       1,796       11,952  
          Non-cash deferred share grant distributions
            120       114  
Less: Share-based compensation awards exercised
            (7,240 )     (3,320 )
Balance, end of year
          $ 65,569     $ 70,893  
 
                       
NON-CONTROLLING INTEREST
    12                  
Balance, beginning of year
          $ (702 )   $ (637 )
Investment by non-controlling shareholders
            11,063       6,147  
Distributions to non-controlling shareholders
            (6,144 )     -  
Foreign exchange impact on non-controlling interest
            1,176       (527 )
Income (loss) attributable to non-controlling interest
            1,034       (5,685 )
Balance, end of year
          $ 6,427     $ (702 )
TOTAL DEFICIT
          $ (91,642 )   $ (139,057 )
See accompanying notes to the consolidated financial statements
         

 
4.

 

 
JUST ENERGY GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31
(in thousands of Canadian dollars)

Net outflow of cash related to the following activities
 
Notes
   
2014
   
2013
 
 
 
 
   
 
   
 
 
OPERATING
 
 
   
 
   
 
 
Income from continuing operations before income taxes
 
 
    $ 218,632     $ 682,297  
Items not affecting cash
 
 
                 
Amortization of intangible assets and related supply contracts
    20(a)       52,510       86,328  
Amortization of contract initiation costs
            20,622       17,439  
Amortization of property, plant and equipment
    20(a)       4,431       4,425  
Amortization included in cost of sales
    20(b)       13,136       9,193  
Share-based compensation
    20(a)       1,796       11,952  
Financing charges, non-cash portion
            14,271       10,534  
Other
            (242 )     (541 )
Change in fair value of derivative instruments
            (186,142 )     (719,575 )
Cash inflow from operating activities of discontinued operations
            (4,191 )     8,612  
 
            (83,809 )     (571,633 )
Adjustment required to reflect net cash receipts from gas sales
    29       (6,186 )     (4,536 )
 
                       
Changes in non-cash working capital
    30       38,726       (9,769 )
 
            167,363       96,359  
Income tax paid
            (1,965 )     (3,238 )
Cash inflow from operating activities
            165,398       93,121  
 
                       
INVESTING
                       
Purchase of property, plant and equipment
            (35,540 )     (38,370 )
Purchase of intangible assets
            (8,089 )     (14,563 )
Advances of long-term receivables
            (129 )     (4,571 )
Investments
            -       (8,942 )
Acquisition of minority interest
            (7,185 )     (1,551 )
Contract initiation costs
            (37,304 )     (31,090 )
Cash flows used in investing activities of discontinued operations
            (24,996 )     (63,756 )
Cash outflow from investing activities
            (113,243 )     (162,843 )
 
                       
FINANCING
                       
Dividends paid
            (115,072 )     (156,651 )
Shares issued for cash
            -       7  
Issuance of long-term debt
            653,928       471,719  
Repayment of long-term debt
            (611,154 )     (277,620 )
Restricted cash
            2,178       699  
Debt issuance costs
            (11,245 )     (7,599 )
Investment made by minority shareholder
            -       5,032  
Cash flows provided by financing activities of discontinued operations
            21,131       22,265  
Distributions to minority shareholder
            (6,143 )     -  
Cash inflow (outflow) from financing activities
            (66,377 )     57,852  
Effect of foreign currency translation on cash balances
            1,276       (2,690 )
Net cash outflow
            (12,946 )     (14,560 )
Cash and cash equivalents reclassified to assets held for sale
            (5,151 )     (162 )
Cash and cash equivalents, beginning of year
            38,498       53,220  
Cash and cash equivalents, end of year
          $ 20,401     $ 38,498  
 
                       
 
                       
Supplemental cash flow information:
                       
Interest paid
          $ 78,500     $ 66,500  
 
                       
See accompanying notes to the consolidated financial statements
 

 
5.

 

JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
1.
ORGANIZATION
 
Just Energy Group Inc. (“JEGI”, “Just Energy” or the “Company”) is a corporation established under the laws of Canada to hold securities and to distribute the income of its directly or indirectly owned operating subsidiaries and affiliates.  The registered office of Just Energy is First Canadian Place, 100 King Street West, Toronto, Ontario, Canada. The consolidated financial statements consist of Just Energy and its subsidiaries and affiliates. The consolidated financial statements were approved by the Board of Directors on May 14, 2014.
 
2.
OPERATIONS
 
Just Energy’s business involves the sale of natural gas and/or electricity to residential and commercial customers under long-term fixed-price, price-protected or variable-priced contracts. Just Energy markets its gas and electricity contracts in Canada, the United States and the United Kingdom under the following trade names: Just Energy, Hudson Energy, Commerce Energy, Smart Prepaid Electric, Amigo Energy, Tara Energy and Green Star Energy. By fixing the price of natural gas or electricity under its fixed-price or price-protected program contracts for a period of up to five years, Just Energy’s customers offset their exposure to changes in the price of these essential commodities. Variable rate products allow customers to maintain competitive rates while retaining the ability to lock into a fixed price at their discretion.  Just Energy derives its margin or gross profit from the difference between the price at which it is able to sell the commodities to its customers and the related price at which it purchases the associated volumes from its suppliers.
 
Just Energy also offers green products through its JustGreen programs. The electricity JustGreen product offers customers the option of having all or a portion of their electricity sourced from renewable green sources such as wind, run of the river hydro or biomass. The gas JustGreen product offers carbon offset credits that allow customers to reduce or eliminate the carbon footprint of their homes or businesses.  Additional green products allow customers to offset their carbon footprint without buying energy commodity products and can be offered in all states and provinces without being dependent on energy deregulation.
 
In addition, Just Energy sells and rents high efficiency and tankless water heaters, air conditioners and furnaces to Ontario and Quebec residents through a subsidiary operating under the trade name National Home Services (“NHS”). In addition, Just Energy through its subsidiaries sells smart thermostats in Ontario and Texas. Just Energy’s subsidiary, Hudson Energy Solar Corp. and its subsidiaries (“HES”), provide a solar project development platform operating in New Jersey, Pennsylvania and Massachusetts, under the trade name Hudson Energy Solar. As at March 31, 2014, and further described in Note 10, HES has been classified as held for sale.

 
6.

 

JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
3.
SIGNIFICANT ACCOUNTING POLICIES
 
 
 
(a)
Basis of presentation and statement of compliance
 
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
 
The consolidated financial statements are presented in Canadian dollars, the functional currency of Just Energy, and all values are rounded to the nearest thousand, except where indicated.  The Company’s consolidated financial statements are prepared on the historical cost basis of accounting, except as disclosed in the accounting policies set out below.
 
 
(b)
Principles of consolidation
 
The consolidated financial statements include the accounts of Just Energy and its directly or indirectly owned subsidiaries as at March 31, 2014. Subsidiaries are consolidated from the date of acquisition and control, and continue to be consolidated until the date that such control ceases. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect these returns through its power over the investee. The financial statements of the subsidiaries are prepared for the same reporting period as Just Energy, using consistent accounting policies. All intercompany balances, income, expenses, and unrealized gains and losses resulting from intercompany transactions are eliminated on consolidation.
 
 
(c)
Cash and cash equivalents and restricted cash
 
All highly liquid temporary cash investments with an original maturity of three months or less when purchased are considered to be cash equivalents. For the purpose of the consolidated statements of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
 
Restricted cash includes cash and cash equivalents, where the availability of funds is restricted by debt arrangements or held in escrow as part of prior acquisition agreements.
 
 
(d)
Accrued gas receivables/accrued gas payable or gas delivered in excess of consumption/deferred revenue
 
Accrued gas receivables are stated at estimated realizable value and result when customers consume more gas than has been delivered by Just Energy to local distribution companies (“LDCs”). Accrued gas payable represents the obligation to the LDCs with respect to gas consumed by customers in excess of that delivered to the LDCs.
 
Gas delivered to LDCs in excess of consumption by customers is stated at the lower of cost and net realizable value. Collections from customers in advance of their consumption of gas result in deferred revenue.
 
Assuming normal weather and consumption patterns, during the winter months, customers will have consumed more than what was delivered resulting in the recognition of unbilled revenues/accrued gas payable; however, in the summer months, customers will have consumed less than what was delivered, resulting in the recognition of gas delivered in excess of consumption/deferred revenue.

 
7.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
These adjustments are applicable solely to the Ontario, Manitoba, Quebec, Saskatchewan and Michigan gas markets.
 
 
(e)
Inventory
 
Inventory consists of water heaters, furnaces, air conditioners and thermostats for selling purposes, and gas in storage. Water heaters, furnaces, air conditioners and thermostats are stated at the lower of cost and net realizable value with cost being determined on a weighted average basis.
 
Gas in storage represents the gas delivered to the LDCs in Illinois, Indiana, New York, Ohio, Georgia, Maryland and California. The balance will fluctuate as gas is injected or withdrawn from storage.
 
Gas in storage is valued at the lower of cost and net realizable value with cost being determined on a weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business.
 
 
(f)
Property, plant and equipment
 
Property, plant and equipment are stated at cost, net of any accumulated depreciation and impairment losses.  Cost includes the purchase price and, where relevant, any costs directly attributable to bringing the asset to the location and condition necessary and/or the present value of all dismantling and removal costs. Where major components of property, plant and equipment have different useful lives, the components are recognized and depreciated separately. Just Energy recognizes in the carrying amount, the cost of replacing part of an item when the cost is incurred and if it is probable that the future economic benefits embodied with the item can be reliably measured. When significant parts of property, plant and equipment are required to be replaced at intervals, Just Energy recognizes such parts as individual assets with specific useful lives and depreciates them accordingly. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in the consolidated statements of income as an expense when incurred. Depreciation is provided over the estimated useful lives of the assets as follows:

Asset category
 
Depreciation method
 
Rate/useful life
Furniture and fixtures
 
Declining balance
 
20%
Office equipment
 
Declining balance
 
20%
Computer equipment
 
Declining balance
 
30%
Buildings
 
Straight-line
 
15-35 years
Water heaters
 
Straight-line
 
10-15 years
Furnaces and air conditioners
 
Straight-line
 
15 years
Leasehold improvements
 
Straight-line
 
Term of lease
Vehicles
 
Straight-line
 
5 years
Thermostats
 
Straight-line
 
5 years
 
An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is included in the consolidated statements of income when the asset is derecognized.

 
8.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
The useful lives and methods of depreciation are reviewed at each financial year-end and adjusted prospectively, if appropriate.
 
 
(g)
Goodwill
 
Goodwill is initially measured at cost, which is the excess of the cost of the business combination over Just Energy’s share in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities. Any negative difference is recognized directly in the consolidated statements of income.  If the fair values of the assets, liabilities and contingent liabilities can only be calculated on a provisional basis, the business combination is recognized using provisional values. Any adjustments resulting from the completion of the measurement process are recognized within 12 months of the date of acquisition.
 
After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of Just Energy’s operating segments that are expected to benefit from the synergies of the combination, irrespective of whether other assets and liabilities of the acquiree are assigned to those segments.
 
 
(h)
Intangible assets
 
Intangible assets acquired outside of a business combination are measured at cost on initial recognition. Intangible assets acquired in a business combination are recorded at fair value on the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and/or accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite.
 
Intangible assets with finite useful lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization method and amortization period of an intangible asset with a finite useful life is reviewed at least once annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense related to intangible assets with finite lives is recognized in the consolidated statements of income in the expense category associated with the function of the intangible assets.
 
Intangible assets consist of gas customer contracts, electricity customer contracts, water heater customer contracts, sales network, brand and goodwill, acquired through business combinations and asset purchases, as well as software, commodity billing and settlement systems and information technology system development.
 
Internally generated intangible assets are capitalized when the product or process is technically and commercially feasible, the future economic benefit is measurable, Just Energy can demonstrate how the asset will generate future economic benefits and Just Energy has sufficient resources to complete development. The cost of an internally generated intangible asset comprises all directly attributable costs necessary to create, produce and prepare the asset to be capable of operating in the manner intended by management.
 
The brand and goodwill are considered to have indefinite useful lives and are not amortized, but rather tested annually for impairment. The assessment of indefinite life is reviewed annually to determine

 
9.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
whether the indefinite life continues to be supportable.
 
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognized in the consolidated statements of income when the asset is derecognized.

Intangible asset category
 
Amortization method
 
Rate
Customer contracts
 
Straight-line
 
Term of contract
Contract initiation costs
 
Straight-line
 
Term of contract
Commodity billing and settlement systems
 
Straight-line
 
5 years
Sales network and affinity relationships
 
Straight-line
 
5-8 years
Information technology system development
 
Straight-line
 
5 years
Software
 
Straight-line
 
1 year
Other intangible assets
 
Straight-line
 
5 years
 
 
(i)
Impairment of non-financial assets
 
Just Energy assesses whether there is an indication that an asset may be impaired at each reporting date. If such an indication exists or when annual testing for an asset is required, Just Energy estimates the asset's recoverable amount. The recoverable amounts of goodwill and intangible assets with an indefinite useful life are estimated at least annually. The recoverable amount is the higher of an asset's or cash-generating unit's (“CGU”) fair value less costs to sell and its value-in-use. Value-in-use is determined by discounting estimated future pre-tax cash flows using a pre-tax discount rate that reflects the current market assessment of the time value of money and the specific risks of the asset. In determining fair value less costs to sell, an appropriate valuation model has to be used. The recoverable amount of assets that do not generate independent cash flows is determined based on the cash-generating unit to which the asset belongs.
 
An impairment loss is recognized in the consolidated statements of income if an asset's carrying amount or that of the cash-generating unit to which it is allocated is higher than its recoverable amount. Impairment losses of cash-generating units are first charged against the value of assets in proportion to their carrying amount.
 
In the consolidated statements of income, an impairment loss is recognized in the expense category associated with the function of the impaired asset.
 
For assets excluding goodwill, 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, Just Energy estimates the asset’s or cash-generating unit’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 amortization, had no impairment loss been recognized for the asset in prior years. Such a reversal is recognized in the consolidated statements of income.
 
Goodwill is tested for impairment annually at year end and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each

 
10.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
segment to which the goodwill relates. Where the recoverable amount of the segment is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods.
 
 
(j)
Leases
 
The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at the inception date and whether fulfilment of the arrangement is dependent on the use of a specific asset or assets, or the arrangement conveys a right to use the asset.
 
Just Energy as a lessee
Operating lease payments are recognized as an expense in the consolidated statements of income on a straight-line basis over the lease term.
 
Just Energy as a lessor
Leases where Just Energy does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income.
 
 
(k)
Financial instruments
 
Financial assets and liabilities
Just Energy classifies its financial assets as either (i) financial assets at fair value through profit or loss, (ii) loans and receivables or (iii) other financial assets, and its financial liabilities as either (i) financial liabilities at fair value through profit or loss or (ii) other financial liabilities. Appropriate classification of financial assets and liabilities is determined at the time of initial recognition or when reclassified in the consolidated statements of financial position.
 
Financial instruments are recognized on the trade date, which is the date on which Just Energy commits to purchase or sell the asset.
 
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held-for-trading and financial assets designated upon initial recognition as at fair value through profit or loss. Financial assets are classified as fair value through profit and loss if they are acquired for the purpose of selling or repurchasing in the near term. This category includes derivative financial instruments entered into that are not designated as hedging instruments in hedge relationships as defined by IAS 39, Financial Instruments: Recognition and Measurement (“IAS 39”). Included in this class are primarily physical delivered energy contracts, for which the own-use exemption could not be applied, financially settled energy contracts and foreign currency forward contracts.
 
An analysis of fair values of financial instruments and further details as to how they are measured are provided in Note 13.  Related realized and unrealized gains and losses are included in the consolidated statements of income.

 
11.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Assets in this category include receivables. Loans and receivables are initially recognized at fair value net of transaction costs. They are subsequently measured at amortized cost using the effective interest method less any impairment. The effective interest amortization is included in finance costs in the consolidated statements of income.
 
Derecognition
A financial asset is derecognized when the rights to receive cash flows from the asset have expired or when Just Energy has transferred its rights to receive cash flows from the asset.
 
Impairment of financial assets
Just Energy assesses whether there is objective evidence that a financial asset is impaired at each reporting date. A financial asset is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that have occurred after the initial recognition of the asset (an incurred “loss event”) and that loss event has an impact on the estimated future cash flows that can be reliably estimated.
 
For financial assets carried at amortized cost, Just Energy first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If Just Energy determines that no objective evidence of impairment exists for an individually assessed financial asset, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective assessment of impairment.
 
If there is objective evidence that an impairment loss has occurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows. The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate.
 
The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognized in income or loss. Interest income continues to be accrued on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as part of other income in the consolidated statements of income.
 
Loans and receivables, together with the associated allowance, are written off when there is no realistic prospect of future recovery. If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account. If a write-off is later recovered, the recovery is credited to other operating costs in the consolidated statements of income.
 
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held-for-trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.
 
Financial liabilities are classified as held-for-trading if they are acquired for the purpose of selling in the near term. This category includes derivative financial instruments entered into by Just Energy that are not designated as hedging instruments in hedge relationships as defined by IAS 39. Included in this class are primarily physically delivered energy contracts, for which the own-use exemption could be not applied,

 
12.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
financially settled energy contracts and foreign currency forward contracts.
 
Gains or losses on liabilities held-for-trading are recognized in the consolidated statements of income.
 
Other financial liabilities
Other financial liabilities are measured at amortized cost using the effective interest rate method. Financial liabilities include long-term debt issued and are initially measured at fair value. Fair value, is the consideration received, net of transaction costs incurred, trade and other payables and bank indebtedness. Transaction costs related to the long-term debt instruments are included in the value of the instruments and amortized using the effective interest rate method. The effective interest expense is included in finance costs in the consolidated statements of income.
 
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in the consolidated statements of income.
 
 
(l)
Derivative instruments
 
Just Energy enters into fixed-term contracts with customers to provide electricity and gas at fixed prices. These customer contracts expose Just Energy to changes in consumption as well as changes in the market prices of gas and electricity. To reduce its exposure to movements in commodity prices, Just Energy enters into derivative contracts.
 
Just Energy analyzes all its contracts, of both a financial and non-financial nature, to identify the existence of any “embedded” derivatives. Embedded derivatives are accounted for separately from the underlying contract at the inception date when their economic characteristics are not closely related to those of the host contract and the host contract are not carried as held-for-trading or designated as fair value through profit or loss.  These embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss.
 
All derivatives are recognized at fair value on the date on which the derivative is entered into and are re-measured to fair value at each reporting date. Derivatives are carried in the consolidated statements of financial position as other financial assets when the fair value is positive and as other financial liabilities when the fair value is negative. Just Energy does not utilize hedge accounting therefore, changes in the fair value of these derivatives are recorded directly to the consolidated statements of income and are included within change in fair value of derivative instruments.
 
 
(m)
Offsetting of financial instruments
 
Financial assets and financial liabilities are offset and the net amount reported in the consolidated statements of financial position if, and only if, there is currently an enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

 
13.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
 
(n)
Fair value of financial instruments
 
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices, without any deduction for transaction costs.
 
For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques that are recognized by market participants. Such techniques may include using recent arm’s length market transactions, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis, or other valuation models.  An analysis of fair values of financial instruments and further details as to how they are measured are provided in Note 13.
 
 
(o)
Revenue recognition
 
Revenue is recognized when significant risks and rewards of ownership are transferred to the customer. In the case of gas and electricity, transfer of risks and rewards generally coincides with consumption. Revenue from sales of water heaters, furnaces, air conditioners and thermostats (collectively, “home services equipment”) is recognized upon installation. Just Energy recognizes revenue from home services equipment leases, based on rental rates over the term commencing from the installation date.
 
Revenue is measured at the fair value of the consideration received, excluding discounts, rebates and sales taxes.
 
The Company assumes credit risk for all customers in Alberta, Illinois, Texas, Massachusetts, Michigan, California and Georgia and for certain large-volume customers in British Columbia, and New York. In addition, the Company assumes credit risk in its NHS and HES divisions.  In these markets, the Company ensures that credit review processes are in place prior to the commodity flowing to the customer.
 
 
(p)
Foreign currency translation
 
Functional and presentation currency
Items included in the consolidated financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in Canadian dollars, which is the parent company’s presentation and functional currency.
 
Transactions
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statements of income except when deferred in other comprehensive income (“OCI”) as qualifying net investment hedges.
 
Translation of foreign operations
The results and consolidated financial position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
 
 
assets and liabilities for each consolidated statement of financial position presented are translated at the closing rate at the date of that consolidated statement of financial position; and
 
 
14.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
 
income and expenses for each consolidated statement of income are translated at the exchange rates prevailing at the dates of the transactions.
 
On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and of borrowings and other foreign currency instruments designated as hedges of such investments, are recorded to other comprehensive income.
 
When a foreign operation is partially disposed of or sold, exchange differences that were recorded in accumulated other comprehensive income are recognized in the consolidated statements of income as part of the gain or loss on sale.
 
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.
 
 
(q)
Per share amounts
 
The computation of earnings per share is based on the weighted average number of shares outstanding during the year. Diluted earnings per share are computed in a similar way to basic earnings per share except that the weighted average number of shares outstanding is increased to include additional shares assuming the exercise of stock options, restricted share grants (“RSGs”), performance bonus incentive grants (“PBGs”), deferred share grants (“DSGs”) and convertible debentures, if dilutive.
 
 
(r)
Share-based compensation plans
 
Equity-based compensation liability
Just Energy accounts for its share-based compensation as equity-settled transactions.  The cost of share-based compensation is measured by reference to the fair value at the date on which it was granted. Awards are valued at the grant date and are not adjusted for changes in the prices of the underlying shares and other measurement assumptions. The cost of equity-settled transactions is recognized, together with the corresponding increase in equity, over the period in which the performance or service conditions are fulfilled, ending on the date on which the relevant grantee becomes fully entitled to the award. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting period reflects the extent to which the vesting period has expired and Just Energy’s best estimate of the number of the shares that will ultimately vest. The expense or credit recognized for a period represents the movement in cumulative expense recognized as at the beginning and end of that period.
 
When options, RSGs, PBGs and DSGs are exercised or exchanged, the amounts credited to contributed surplus are reversed and credited to shareholders' capital.
 
The RSG plan is an equity settled plan with the exception of the cash-out option offered.  It provides employees who (i) hold a position below director or (ii) wish to exchange 500 or fewer RSGs to receive cash in lieu of shares.  The Company records this financial liability as fair value through the profit and loss.  Fair value is based on the number of RSGs eligible for the cash-out option and the underlying price of Just Energy’s shares.  As at March 31, 2014, the Company recorded $560 (2013 - $414) to other current liabilities with an offsetting adjustment to change in fair value of derivative financial instruments.

 
15.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
 
(s)
Employee future benefits
 
In Canada, Just Energy offers a long-term savings plan (the "Plan") for all full-time salaried and permanent full-time and part-time employees (working more than 26 hours per week) of its other subsidiaries. The Plan consists of two components, a Deferred Profit Sharing Plan ("DPSP") and an Employee Profit Sharing Plan ("EPSP").  For participants of the DPSP, Just Energy contributes an amount equal to a maximum of 2% per annum of an employee's base earnings. For the EPSP, Just Energy contributes an amount up to a maximum of 2% per annum of an employee's base earnings towards the purchase of shares of Just Energy, on a matching one for one basis.
 
For U.S. employees, Just Energy has established a long-term savings plan (the "Plan") for all permanent full-time and part-time employees (working more than 26 hours per week) of its subsidiaries. The Plan consists of two components, a 401(k) and an Employee Unit Purchase Plan (“EUPP”).  For participants who are enrolled only in the EUPP, Just Energy contributes an amount up to a maximum of 3% per annum of an employee's base earnings towards the purchase of Just Energy shares, on a matching one for one basis. For participants who are enrolled only in the 401(k), Just Energy contributes an amount up to a maximum of 4% per annum of an employee's base earnings, on a matching one for one basis. In the event an employee participates in both the EUPP and 401(k), the maximum Just Energy will contribute is 5% total, comprised of 3% to the EUPP and 2% to the 401k.
 
Participation in the plans in Canada or the U.S. is voluntary. The Canadian plans and the U.S. 401(k) plan have a two-year vesting period beginning from the employee's enrollment date in the plan. During the year, Just Energy contributed $2,507 (2013 - $2,171) to the plans, which was paid in full during the year.
 
Obligations for contributions to the Plan are recognized as an expense in the consolidated statements of income as incurred.
 
 
(t)
Income taxes
 
Current income tax assets and liabilities are measured at the amount expected to be paid to tax authorities, net of recoveries, based on the tax rates and laws enacted or substantively enacted at the dates of the consolidated financial statements.
 
Just Energy follows the liability method of accounting for deferred income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to the temporary differences between the carrying value of the assets and liabilities in the consolidated financial statements and their respective tax bases.
 
Deferred tax assets and liabilities are recognized for all taxable temporary differences, except:
 
 
Where the deferred tax asset/liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
 
In respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
 
 
16.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
Deferred tax assets are recognized for all carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses, can be utilized except:
 
 
Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
 
In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.
 
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
 
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
 
Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity.
 
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
 
 
(u)
Provisions
 
Provisions are recognized when Just Energy has a present obligation, legal or constructive, as a result of a past event and 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 Just Energy expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the consolidated statements of income, net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, 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 a finance cost in the consolidated statements of income.
 
 
17.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
 
(v)
Selling and marketing expenses and contract initiation costs
 
Commissions and various other costs related to obtaining and renewing customer contracts are charged to income in the period incurred except as disclosed below:
 
Commissions related to obtaining and renewing commercial customer contracts are paid in one of the following ways: all or partially upfront or as a residual payment over the term of the contract. If the commission is paid all or partially upfront, it is recorded as contract initiation costs and amortized in selling and marketing expenses over the term for which the associated revenue is earned.  If the commission is paid as a residual payment, the amount is expensed as earned.
 
In addition, commissions related to obtaining customer contracts signed by NHS are recorded as contract initiation costs and amortized in selling and marketing expenses over the remaining term of the contract.
 
 
(w)
Non-current assets held for sale and discontinued operations
 
Just Energy classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. The criteria for the held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.  Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the consolidated statements of income. Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
 
 
(x)
New standards, interpretations and amendments adopted by the Company during the year
 
The following new accounting standards that have been adopted had no material impact on the consolidated financial statements except for the additional disclosures as contained in the notes to these consolidated financial statements:
 
 
IAS 1, Presentation of Items of Other Comprehensive Income – Amendments to IAS 1
 
IFRS 7, Disclosures – Offsetting Financial Assets and Financial Liabilities – Amendments to IFRS 7
 
IFRS 10, Consolidated Financial Statements
 
IFRS 11, Joint Arrangements
 
IFRS 12, Disclosure of Interests in Other Entities
 
IFRS 13, Fair Value Measurement
 
IAS 28, Investments in Associates and Joint Ventures
 
IAS 32, Offsetting Financial Assets and Financial Liabilities – Amendments to IAS 32

 
18.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
4.
(i)
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS
 
 
The preparation of the consolidated financial statements requires the use of estimates and assumptions to be made in applying the accounting policies that affect the reported amounts of assets, liabilities, income, expenses and the disclosure of contingent liabilities. The estimates and related assumptions are based on previous experience and other factors considered reasonable under the circumstances, the results of which form the basis of making the assumptions about carrying values of assets and liabilities that are not readily apparent from other sources.
 
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised. Judgments made by management in the application of IFRS that have a significant impact on the consolidated financial statements relate to the following:
 
Impairment of non-financial assets
 
To determine the recoverable amount of an impaired asset, the Company estimates expected future cash flows at the CGU level and determines a suitable discount rate in order to calculate the present value of those cash flows. In the process of measuring expected future cash flows, the Company makes assumptions about future sales, gross margin rates, expenses, capital expenditures, and working capital investments which are based upon past and expected performance. Determining the applicable discount rate involves estimating appropriate adjustments to market risk and to Company-specific risk factors. An impairment loss is recognized for the amount by which the carrying amount of an asset or a CGU exceeds its recoverable amount. The Company uses judgment when identifying CGUs and when assessing for indicators of impairment. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. The key assumptions used to determine the recoverable amount for the different CGUs, including a sensitivity analysis, are disclosed and further explained in Note 22.
 
Deferred taxes
 
Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable income realized, including the usage of tax-planning strategies.
 
Useful life of key property, plant and equipment and intangible assets
 
The amortization method and useful lives reflect the pattern in which management expects the asset’s future economic benefits to be consumed by Just Energy.
 
Provisions for litigation
 
The State of California has filed a number of complaints to the Federal Energy Regulatory Commission (“FERC”) against many suppliers of electricity, including Commerce Energy Inc. (“CEI”), a subsidiary of Just Energy, with respect to events stemming from the 2001 energy crisis in California. Pursuant to the complaints, the State of California is challenging the FERC’s enforcement of its market-based rate system. At this time, the likelihood of damages or recoveries and the ultimate amounts, if any, with respect to this litigation are not certain; however, an estimated amount has been recorded in these consolidated financial statements as at March 31, 2014. In the general course of operations, Just Energy has made additional provisions for litigation matters that have arisen.
 
On December 17, 2012, and then amended on September 11, 2013, NHS was served with a $60 million claim from a competitor for unfair trade practices and misleading marketing.  Just Energy has issued a

 
19.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
counterclaim for $60 million and will vigorously defend itself against this claim.    Just Energy believes the claim is without merit and has not included an accrual in its provisions for this claim.
 
On August 12, 2013, Fulcrum Power Services L.P. (“FPS”) filed a lawsuit against Just Energy and Fulcrum Retail Holdings LLC (“FRH”) for up to $20 million in connection with FRH failing to achieve an earn-out target under the Purchase and Sales Agreement dated August 24, 2011 for the purchase of FRH from FPS.  FPS alleges that Just Energy conducted itself in a manner that was intended to or was reasonably likely to reduce or avoid the achievement of the earn-out target.  In October 2013, Just Energy’s motion to compel arbitration was successful.  Just Energy will continue to vigorously defend itself against this claim.  Just Energy believes the claim is without merit and has not included an accrual in its provisions for this claim.
 
In March 2012, Davina Hurt and Dominic Hill filed a lawsuit against CEI and the Company in the Ohio federal court claiming entitlement to payment of minimum wage and overtime under Ohio wage claim laws and the Federal Labor Standards Act (FLSA) on their own behalf and similarly situated door-to-door sale representatives in the United States. CEI disagrees with plaintiffs’ claims on a number of grounds and has been vigorously defending the claims.
 
Trade receivables
Just Energy reviews its individually significant receivables at each reporting date to assess whether an impairment loss should be recorded in the consolidated statements of income. In particular, judgment by management is required in the estimation of the amount and timing of future cash flows when determining the impairment loss. In estimating these cash flows, Just Energy makes judgments about the borrower’s financial situation and the net realizable value of collateral. These estimates are based on assumptions about a number of factors. Actual results may differ, resulting in future changes to the allowance.
 
Fair value of financial instruments
Where the fair value of financial assets and financial liabilities recorded in the consolidated statements of financial position cannot be derived from active markets, they are determined using valuation techniques including discounted cash flow models. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgment includes consideration of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. Refer to Note 13 for further details about the assumptions as well as a sensitivity analysis.
 
Subsidiaries
Subsidiaries that are not wholly owned by Just Energy require judgment determining the amount of control that Just Energy has over that entity and the appropriate accounting treatments.  In these consolidated financial statements, management has determined that Just Energy controls Just Ventures and therefore, has treated the 50% that is not owned by Just Energy as a non-controlling interest.  Similarly, management has determined that Just Energy controls certain structures in its Solar division.  Some of these structures are owned primarily by the non-controlling interest; however, the structure contains an ownership “flip” at a later date.  In these instances, Just Energy has control as a result of these entities accomplishing a pre-determined directive.
 
 
20.

 
 
JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
 
(ii)
ACCOUNTING STANDARDS ISSUED BUT NOT YET APPLIED
 
The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the consolidated financial statements are disclosed below.  Just Energy intends to adopt these standards, if applicable, when they become effective.
 
IFRS 9, Financial Instruments (“IFRS 9”) was issued by the IASB on October 28, 2010, and will replace IAS 39. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its business model and the contractual cash flow characteristics of the financial assets. Two measurement categories continue to exist to account for financial liabilities in IFRS 9, fair value through profit or loss (“FVTPL”) and amortized cost. Financial liabilities held for trading are measured at FVTPL, and all other financial liabilities are measured at amortized cost unless the fair value option is applied. The treatment of embedded derivatives under the new standard is consistent with IAS 39 and is applied to financial liabilities and non-derivative hosts not within the scope of the standard. IFRS 9 is effective for annual periods beginning on or after January 1, 2018. Management is currently evaluating the impact of IFRS 9 on the consolidated financial statements.
 
IFRIC 21, Levies (“IFRIC 21”) provides guidance on when to recognize a liability for a levy imposed by a government, both for levies that are accounted for in accordance with IAS 37, Provisions, Contingent Liabilities and Contingent Assets, and those where the timing and amount of the levy is certain. IFRIC 21 identifies the obligating event for the recognition of a liability as the activity that triggers the payment of the levy in accordance with the relevant legislation. A liability is recognized progressively if the obligating event occurs over a period of time or, if an obligation is triggered on reaching a minimum threshold, the liability is recognized when that minimum threshold is reached. IFRIC 21 is effective for annual periods beginning on or after January 1, 2014. Management is currently evaluating the impact of IFRIC 21 on the consolidated financial statements.

 
21.

 

JUST ENERGY GROUP INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2014
(in thousands of Canadian dollars, except where indicated and per share amounts)
 
5.
PROPERTY, PLANT AND EQUIPMENT
 
As at March 31, 2014
   
 
   
 
   
 
   
 
   
 
 
 
 
Computer
   
 
   
 
   
Furniture
   
 
   
Office
   
Home services
   
Leasehold
   
Solar
   
 
 
 
 
equipment
   
Buildings
   
Land
   
and fixtures
   
Vehicles
   
equipment
   
equipment
   
improvements
   
equipment
   
Total
 
Cost:
 
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
Opening balance -
 
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
April 1, 2013
  $ 11,729     $ 670     $ -     $ 6,590     $ 22     $ 19,216     $ 164,539     $ 8,974     $ 101,003     $ 312,743  
Additions/(disposals)
    1,709       (695 )     -       94       -       1,691       32,388       45       -       35,232  
Transfer to discontinued operations
    (4 )     -       -       -       -       -       -       -       (101,003 )     (101,007 )
Exchange differences
    257       25       -       180       -       250       93       60       -       865  
Ending balance,
                                                                               
March 31, 2014
    13,691       -       -       6,864       22       21,157       197,020       9,079       -       247,833  
Accumulated Amortization:
                                                                               
Opening balance -
                                                                               
April 1, 2013
    (7,510 )     (56 )     -       (4,422 )     (14 )     (11,720 )     (23,024 )     (6,516 )     (1,478 )     (54,740 )
Amortization charge to cost of sales
    -       -       -       -       -       -       (13,136 )     -       -       (13,136 )
Amortization charge for the year
    (1,622 )     (18 )     -       (502 )     (3 )     (1,699 )     -       (587 )     -       (4,431 )
Disposals
    -       76       -       -       -       -       -       -       -       76  
Transfer to discontinued operations
    2       -               -       -       -       -       -       1,478       1,480  
Exchange differences
    (133 )     (2 )     -       (80 )     -       (117 )     (4 )     (26 )     -       (362 )
Ending balance,
                                                                               
March 31, 2014
    (9,263 )     -       -       (5,004 )     (17 )     (13,536 )     (36,164 )     (7,129 )     -       (71,113 )
Net book value,
                                                                               
March 31, 2014
  $ 4,428     $ -     $ -     $ 1,860     $ 5     $ 7,621     $ 160,856     $ 1,950     $ -     $ 176,720  
 
As at March 31, 2013
                                                           
 
 
Computer
   
Buildings and
   
 
   
Furniture
   
 
   
Office
   
Home services
   
Leasehold
   
Solar
   
 
 
 
 
equipment
   
ethanol plant
   
Land
   
and fixtures
   
Vehicles
   
equipment
   
equipment
   
improvements
   
equipment
   
Total
 
Cost:
 
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
Opening balance -
 
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
April 1, 2012
  $ 9,453     $ 158,500     $ 299     $ 6,572     $ 212     $ 20,028     $ 117,755     $ 8,642     $ 35,789     $ 357,250  
Additions/(disposals)
    2,402       -       -       459       (25 )     1,193       46,784       384       63,616       114,813  
Transfer to discontinued operations
    (173 )     (157,842 )     (299 )     (476 )     (165 )     (2,052 )     -       (64 )     -       (161,071 )
Exchange differences
    47       12       -       35       -       47       -       12       1,598       1,751  
Ending balance,