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Notes to Accounts of Energy Development Company Ltd.

Mar 31, 2015

Rights, Preferences and Restrictions attaching to each classes of shares including restrictions on the distribution of dividends and the repayment of capital

a) The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity is entitled to one vote per share. The dividend, if any proposed by the Board of Directors of the Company is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in proportion to the number of equity shares held by them.

b) The Board of Directors has recommended payment of dividend @ 5% (Rs. 0.50) per equity share on the paid-up share capital of the company for the financial year 2014-2015 subject to approval of members at the ensuing Annual General Meeting.

(Secured by hypothecation of entire stocks and other movables of the company including all movable Plant and Machinery, Furniture and Fixtures, Vehicles, Computers and other accessories etc. stored or to be stored, at the premises/godowns of the company's contract division and also all present and future book debts, outstanding monies, receivables, claims, bills etc. and equitable mortgage of immovable properties at 9MW Harangi Hydro Electric Project)

(*) [Includes Rs. 10,78,000/- (Previous Year Rs. Nil /- ) payable to subsidiaries] (Refer Note 27)

a) The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act) and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under the Act has not been given.

b) Payables for goods and services includes acceptances amounting to Rs. Nil /- (Previous year Rs. 85,51,329/-)

(i) The shares held in Ayyappa Hydro Power Ltd., a subsidiary are pledged (3,00,00,000 equity shares and 2,20,00,000 preference shares) with the lender of the said subsidiary.

(ii) The various subsidiaries [mentioned in (d to q) & (s to v) above] of the company on completion of prefeasibility report have been granted permission for setting up of certain hydel power plants, having aggregate capacity of 572 MW hydel power plant by the Government of Arunachal Pradesh and Uttarakhand. Project survey, geological investigation and formulation of Detailed Project Report (DPR) and other allied works are under progress. These investments being strategic and long term in nature, there is no permanent diminution and therefore no provision has been considered necessary.

(*) (a) [Includes Rs. 14,71,175/- (Previous Year Rs. Nil ) receivable from subsidiaries] (Refer Note 27)

(**) (b) Other Advances includes Rs. 4,11,586/- (Previous Year Rs. 801,721/-) under Short Term Loans and Advances and Rs. 2,21,000 (Previous Year Rs. NIL/-) under Long Term Loans and Advances in respect of loan to employees. Maximum outstanding Rs. 11,68,370/- (Previous Year Rs. 2,191,952/-)]

Employees Benefits :

The disclosures required under Accounting Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006 (AS-15), are given below :

(i) Defined Contribution Scheme

Contribution to Defined Contribution Plan, recognized for the year are as under :

Employer's Contribution to Provident Fund Rs. 131,598/- (Previous year Rs. 108,074/-)

Employer's Contribution to Pension Fund Rs. 298,766/- (Previous year Rs. 244,919/-)

(ii) Defined Benefit Scheme

The employee's gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for Leave Encashment is recognized in the same manner as gratuity.

Notes :

(a) Assumptions related to future salary increases, attrition, interest rate for discount and overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth and other factors applicable to the period over which the obligation is expected to be settled.

b) During the year, certain employees of the company have been transferred to subsidiary companies without affecting their terms of employment and accordingly figures for the current year are not comparable with corresponding figures of the previous year.

(*) Value of consumption of stores and spare parts:

(i) The entire consumption is out of indigenous supplies.

(ii) Consumption as above includes Rs. 149,974/- (Previous year Rs. 309,064/-) on account of amortisation of spares.

(iii) Stores and Spare parts included in inventory are largely consumed as replacements and hence their consumption may not be comparable on a year on year basis.

(**) Includes Net Loss on foreign currency transactions of Rs. (-)13,17,008/- (Previous Year : Rs. 5.30.604/-)

As at 31st As at 31st March,2015 March,2014

NOTE 2

CONTINGENT LIABILITIES AND COMMITMENTS

(To the extent not provided for)

Contingent Liabilities

a) Claims against the company not acknowledged as debts

i) Income Tax matters under disputes and pending in appeal 119,430,590 125,300,100

ii) Sales Tax matters under disputes and pending in appeal 23,919,314 7,902,703

The Company's pending litigation comprise of proceedings with income tax and sales tax authorities. The company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The company does not expect the outcome of these proceedings to have material impact on its financial position. Future cash outflows if any in respect of (i) and (ii) above are dependent upon the outcome of the decision/judgements.

Subsidiaries of Arunachal Hydro Power Ltd.

(i) EDCL Arunachal Hydro Projects Pvt. Ltd.

(ii) EDCL Seppa Beyong Hydro Electric Pvt. Ltd.

(iii) EDCL Seppa Dunkho Hydro Electric Pvt. Ltd.

(iv) EDCL Seppa Jung Power Pvt. Ltd.

(v) EDCL Seppa Kawa Power Pvt. Ltd.

(vi) EDCL Seppa Lada Hydro Electric Pvt. Ltd.

(vii) EDCL Seppa Marjingla Hydro Electric Pvt. Ltd.

(viii) EDCL Seppa Nire Hydro Electric Pvt. Ltd.

(ix) EDCL Seppa Pachuk Power Pvt. Ltd.

(x) EDCL Seppa Riang Power Pvt. Ltd.

(xi) EDCL Tawang Lower Tsachu Hydro Electric Pvt. Ltd.

(xii) EDCL Tawang Power Pvt. Ltd.

(xiii) EDCL Tawang Upper Tsachu Hydro Electric Pvt. Ltd.

(c) Individuals having significant influence directly or indirectly (Promoter and their relatives)

1 Mr. Amar Singh (Non Executive Chairman )

2 Mrs.Pankaja Kumari Singh (Wife of the Non Executive Chairman)

(d) Enterprises over which individuals mentioned in (c ) above exercises significant influence

1 Startrack Vinimay Private Limited

2 Sarvottam Caps Private Limited


Mar 31, 2014

CONTINGENT LIABILITIES AND COMMITMENTS

(To the extent not provided for)

a) Contingent Liabilities

i) The company has given guarantee in respect of loan taken by one of its subsidiary (Outstanding balance as on 31.03.2014 Rs. 583,622,488/-) (Previous year Rs. 605,196,921/-)

ii) Income tax matters under disputes and pending in appeal Rs. 125,300,100/- (Previous year Rs. 30,224,140/-)

iii) Sales tax matters under disputes and pending in appeal Rs. 7,902,703/- (Previous year Rs. Nil)

iv) Bank guarantees given Rs. 81,464,933/- (Previous year Rs. 81,464,933/-)

Future cash outflows in respect of (ii) and (iii) above are dependent upon the outcome of the decision/judgements.

b) Commitments

i) Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. 235,077,791/- (Previous year Rs. 212,885,648/-)

NOTE 2

RELATED PARTY DISCLOSURES PURSUANT TO ACCOUNTING STANDARD -18 :

(a) Key Management Personnel and their relative

Mr. Amar Singh (Non Executive Chairman )

Mrs. Pankaja Kumari Singh (Wife of the Non Executive Chairman)

Mr. Sanjiv Saraf (Executive Director)

Mrs. Indira Saraf (Wife of the Executive Director)

(b) Subsidiary Companies

1 AYYAPPA HYDROPOWER LIMITED

2 EASTERN RAMGANGA VALLEY HYDEL PROJECTS CO. PVT. LTD.

3 EDCL ARUNACHAL HYDRO PROJECT PVT. LTD.

4 EDCL POWER PROJECTSLIMITED

5 EDCL SEPPA BEYONG HYDRO ELECTRIC PVT. LTD.

6 EDCL SEPPA DUNKHO HYDRO ELECTRIC PVT. LTD.

7 EDCL SEPPA JUNGPOWER PVT.LTD.

8 EDCL SEPPA KAWA POWER PVT. LTD.

9 EDCL SEPPA LADA HYDRO ELECTRIC PVT. LTD.

10 EDCL SEPPA MARJINGLA HYDRO ELECTRIC PVT. LTD.

11 EDCL SEPPA NIRE HYDRO ELECTRIC PVT. LTD.

12 EDCL SEPPA PACHUK POWER PVT. LTD.

13 EDCL SEPPA RIANGPOWER PVT.LTD.

14 EDCL TAWANG LOWER TSACHU HYDRO ELECTRIC PVT. LTD.

15 EDCL TAWANGPOWER PVT.LTD.

16 EDCL TAWANG UPPER TSACHU HYDRO ELECTRIC PVT. LTD.

17 SARJU VALLEY HYDEL PROJECTS COMPANY PVT. LTD.

(c) Associates

Sterlite Merchants LLP

Sarvottam Caps Pvt. Ltd. (Upto 09.01.2013 )

i) In respect of above parties, there is no provision for doubtful debts as on 31st March 2014 and no amount has been written or written back during the year in respect of debts due from / to them.

ii) The above Related Party information is as identified by the Management and relied upon by the auditors.

SEGMENT REPORTING

Segments have been identified in line with the Accounting Standards AS-17 taking into account the organization structure as well as the differencing risk and return. The Company''s business segment comprises of (1) generation and sale of electricity and (2) Construction, development, implementation, operation & maintenance of projects and consultancies (Contract Division). These have been identified by the type of their respective sales and services rendered. Amount in (Rs.)

* Sales/Income from operations (net of service tax) includes Rs. 72,600,000/-(Previous Year Rs. 72,600,000/-) on account of income from consultancy and other services.

Revenue and expenses have been identified to segment on the basis of their relationship to the operating activities of the segment. Revenue and expenses which relates to enterprise as a whole and not allocable to segment on a reasonable basis have been included under the head other common expenses.

As the company operates entirely in India no secondary segment has been identified for the above purpose.

NOTE 3

COMPARATIVES

The previous year''s figures have been regrouped and rearranged wherever considered necessary .


Mar 31, 2013

NOTE 1

COMMITMENT & CONTINGENCIES

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. 212,885,648/-(Previous year Rs. 202,245,697/-)

b) The company has given guarantee in respect of loan taken by one of its subsidiary (Outstanding balance as on 31.03.2013 Rs. 605,196,921/-)

c) Claims against the Company not acknowledged as debts :

Nature of the statute Nature of Dues Amount Period to which Forum where the amount relates dispute is pending

Income Tax Scruitiny demand raised U/s 143(3) 30,224,140/-Assessment year 2010-11 CIT (Appeals)

NOTE 2

SEGMENT REPORTING

Segments have been identified in line with the Accounting Standards AS-17 taking into account the organization structure as well as the differencing risk and return. The Company''s business segment comprises of (l)generation and sale of electricity (SOE) and (2)sale of project materials, consultancy and service charges (Contract Division). These have been identified by the type of their respective sales and services rendered.

* Sales/Income from operations (net of service tax) includes Rs. 72,600,000/-(Previous Year Rs. 92,178,351/-) on account of income from consultancy and other services.

Revenue and expenses have been identified to segment on the basis of their relationship to the operating activities of the segment. Revenue and expenses which relates to enterprise as a whole and not allocable to segment on a reasonable basis have been included under the head other common expenses.

As the company operates entirely in India no secondary segment has been identified for the above purpose.

NOTE 3 COMPARATIVES

The previous year''s figures have been regrouped and rearranged wherever considered necessary .


Mar 31, 2012

(Secured by hypothecation of entire stocks and other movables of the company including all movable Plants & Machineries, Furniture & Fixtures, Vehicles, Computers and other accessories, etc. stored or to be stored, at the premises/god owns of the company's' contract division and also all present and future book debts, outstanding monies, receivables, claims, bills, etc. and equitable mortgage of immovable properties at 9MW Harangi Hydro Electric Project) (Renewable every year).

The Company has not yet received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act) and hence disclosure relating to amounts unpaid as at the yearend together with interest paid/payable under the Act has not been given.

* Includes Rs. 24,637,316/- (Previous year Rs. 3,751,890/-) payable to Associate company.

Note : 1) 7.21 acres of Land has been taken on lease for 40 years w.e.f. 14th July, 1999 at an annual lease rent of Rs. 72,100/-.

2) Transmission Lines, Transformers, Cable network etc. include Power Evacuating facilities put up in relation to the Hydro Electric Generating Station, which has been handed over to the Electricity Board for transmission of Electricity and maintenance thereof.

3) Windmill includes Leasehold Land of Rs. 3,600,000/- (Previous year Rs. 3,600,000/-).

'''The shares held in Ayyappa Hydro Power Ltd., a subsidiary was pledged (3,750,000 shares) with the lender of the said subsidiary. Further the Company has given a non-disposable undertaking (8,750,000 shares) to the lender of the said subsidiary.

* Includes Rs. 38,957/- (Previous Year Rs. 67,925/-) receivable from Subsidiary Company.

* Includes Rs. 84,029,653/- (Previous Year Rs. Nil) receivable from Subsidiary Company.

* Includes Rs. 93,366,280/- (Previous Year Rs. Nil) amount received from subsidiary company **Includes Rs. 3,298,350/- from subsidiary company.

Employees Benefits

The disclosures required under Accounting Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006 (AS-15), are given below :

(i) Defined Contribution Scheme

Contribution to Defined Contribution Plan, recognized for the year are as under :

Employer's Contribution to Provident Fund Rs. 108,047/- (Previous year Rs. 106,684/-)

Employer's Contribution to Pension Fund Rs. 245,026/- (Previous year Rs. 251,260/-)

Notes:

(a) Assumptions related to future salary increases, attrition, interest rate for discount and overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth and other factors applicable to the period over which the obligation is expected to be settled.

* Value of consumption of stores and spare parts :

(i) The entire consumption is out of indigenous supplies.

(ii) Consumption as above includes Rs. 309,911/- (Previous year Rs. 309,064/-) on account of amortization of spares.

(iii) Stores and Spare parts included in inventory are largely consumed as replacements and hence their consumption may not be comparable on a year on year basis.

NOTE 1

Commitment

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. 202,245,697/- (Previous year Rs. 17,000,000/-).

b) The company has given guarantee in respect of loan taken by one of its subsidiary (Outstanding balance as on 31.03.2012 Rs. 445,882,806/-).

NOTE 2

Certain debtors aggregating to Rs. 43,282,853/- are recoverable for a considerable period. In view of the persuasive and other steps being taken, these balances have been considered to be fully recoverable, however in accordance with the prudent accounting policy, a provision for bad and doubtful debts have been made in the accounts to the extent of 50% of the outstanding, as on 31st March, 2012 as disclosed in note no. 15.

Notes:

i) In respect of above parties, there is no provision for doubtful debts as on 31st March 2012 and no amount has been written off or written back during the year in respect of debts due from/to them.

ii) The above Related Party information is as identified by the Management and relied upon by the auditors.

* This being a technical matter has been taken as certified by the management and has not been verified by the auditors.

(B) Units purchased for operations of plant 173,370 units.

(C) The company purchases various items which can be broadly classified as project materials hence further classification of the same has not been carried out.

* Sales/Income from operations (net of service tax) includes Rs. 92,178,351/-(Previous Year Rs. 32,400,000/-) on account of income from consultancy and other services.

Revenue and expenses have been identified to segment on the basis of their relationship to the operating activities of the segment. Revenue and expenses which relates to enterprise as a whole and not allocable to segment on a reasonable basis have been included under the head other common expenses.

As the company operates entirely in India no secondary segment has been identified for the above purpose.

The previous year's figures have been regrouped and rearranged wherever considered necessary .

Notes: 1) Cash and Bank Balance as on 31.03.2012 includes Rs. 46,186,000/- (Previous Year Rs. 35,674,000/-) as Margin Money Accounts.

2) Cash Flow Statement is prepared by the indirect method as set out in Accounting Standard - 3 on Cash Flow Statement

3) Cash & Cash Equivalents presented in the statement consists of cash on hand and demand deposits with bank as on the balance sheet date.


Mar 31, 2011

(1) Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. 489,694,450/- (Previous year Rs. 17,000,000/-).

(2) Capital Work in Progress includes:

a. Machinery in stock, construction /erection materials, advances for construction/erection works and machinery etc.

b. Capital advances of Rs Nil. (Previous year Rs. 1,600,000/-)

d. The second Power plant at Harangi was commissioned during the year and accordingly pre-operative expenses and balances in Capital Work-in-Progress have been transferred to Fixed Assets.

e. Fixed Assets (including Capital Work-in Progress) as at 31st March, 2011 included pre-operative/ initial expenses incurred towards various Hydro- Electrical Projects at Arunachal Pradesh which have been transferred to various subsidiary companies as on that date. Accordingly, expenses incurred till date and lying as Capital Work-in Progress have been transferred to the said companies and included in Loans and Advances as these amounts are recoverable from the subsidiaries.

(3) A scheme of arrangement for amalgamation of Dhanashree Projects Limited (Dhanashree) with the Company and transfer of 7MW Ullankal Hydel Power Project Undertaking (the Undertaking) to EDCL Power Projects Limited (PPL), a wholly owned subsidiary with effect from 1st April 2009 (the appointed date) has been sanctioned by the Honourable High Courts at Bangalore and Calcutta under Section 391 and Section 394 of the Companies Act, 1956 vide their Order dated August 12, 2010 and September 15, 2010 respectively. As per the said scheme, all assets and liabilities pertaining to Dhanashree has been transferred to the Company and those pertaining to the Undertaking has been transferred from the Company at their respective book values with effect from the appointed date. Necessary adjustments in this respect were given effect to in the books of accounts of the Company in previous year. However, the necessary formalities in respect of change in name for immovable properties, investment, bank accounts etc. are in the process of being complied with.

(4) Income from sale of electricity for the year includes amount received from Chamundeshwari Electricity Supply Company Limited (CHESCOM) on account of excess generation and revision of rates totaling to Rs. 86.07 Lacs as arrear for the period upto 31st March,2010. Cost of power purchased for the year includes a sum of Rs. 32.56 lacs paid to CHESCOM on account of minimum demand charges for electricity purchased for the period upto 31st March, 2010.

(5) The shares held in Ayyappa Hydro Power Ltd., a subsidiary was pledged (3,750,000 shares) with the lender of the said subsidiary. Further the Company has given a non - disposable undertaking (8,750,000 shares) to the lender of the said subsidiary.

(6) The Company has not yet received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act) and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under the Act has not been given.

(7) Related Party disclosures pursuant to Accounting Standard -18 :

(a) Key Management Personnel and their relative

Mr. Amar Singh (Chairman and Whole Time Director)

Mrs. Pankaja Kumari Singh (Wife of the Chairman and Whole Time Director)

Mr. Sanjiv Saraf (Executive Director)

Mrs. Indira Saraf (Wife of the Executive Director)

(b) Subsidiary Company Ayyappa Hydro Power Limited

Eastern Ram Ganga Valley Hydel Projects Company Pvt. Ltd.

EDCL Power Projects Ltd..

EDCL Arunachal Hydro Project Pvt. Ltd.

EDCL Seppa Beyong Hydro Electric Pvt. Ltd.

EDCL Seppa Nire Hydro Electric Pvt. Ltd.

EDCL Seppa Dhunko Hydro Electric Pvt. Ltd.

EDCL Seppa Lada Hydro Electric Pvt. Ltd.

EDCL Seppa Marjingla Hydro Electric Pvt. Ltd.

EDCL Seppa Jung Power Pvt. Ltd.

EDCL Seppa Kawa Power Pvt. Ltd.

EDCL Seppa Pachuk Power Pvt. Ltd.

EDCL Seppa Riang Power Pvt. Ltd.

EDCL Tawang Power Pvt. Ltd.

EDCL Tawang Lower Tsachu Hydro Electric Pvt. Ltd.

EDCL Tawang Upper Tsachu Hydro Electric Pvt. Ltd

Sarju Valley Hydel Projects Company Pvt. Ltd.

(c) Associates Sarvottam Caps Limited

(b) Units generated and sold includes 1.09 million units from 6 MW Harangi stage II project which was commissioned on 30th August, 2010.

(c) Units purchased for operations of plant 1,02,548 units.

(d) Details in respect of goods purchased and sold :

The company purchases and sales various items primarily required in electrical projects and as these materials are denominated in different units quantitative details as required by certain clauses of Paragraph 3, 4C and 4D of the Part II of Schedule VI of the Companies Act 1956 has not been provided.

(e) Value of consumption of stores and spare parts :

(i) The entire consumption is out of indigenous supplies.

(ii) Consumption as above includes Rs 309,064/- (Previous year Rs 309,064/-) on account of amortisation of spares.

(iii) Stores and Spare parts included in inventory are largely consumed as replacements and hence their consumption may not be comparable on a year on year basis.

8. Employees Benefits :

The disclosures required under Accounting Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006 (AS-15), are given below :

(i) Defined Contribution Scheme

Contribution to Defined Contribution Plan, recognized for the year are as under :

Employer's Contribution to Provident Fund Rs 106,684/- (Previous year Rs. 80,552/-)

Employer's Contribution to Pension Fund Rs 251,260/- (Previous year Rs. 182,465/-)

(ii) Defined Benefit Scheme

The employee's gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for Leave Encashment is recognized in the same manner as gratuity.

9. Segment Reporting

Segments have been identified in line with the Accounting Standards AS-17 taking into account the organization structure as well as the differencing risk and return. The Company's business segment comprises of generation and sale of electricity (SOE) and sale of electrical project materials, consultancy and service charges (Contract Division). These have been identified by the type of their respective sales and services rendered.

Revenue and expenses have been identified to segment on the basis of their relationship to the operating activities of the segment. Revenue and expenses which relates to enterprise as a whole and not allocable to segment on a reasonable basis have been included under the head other common expenses.

As the company operates entirely in India no secondary segment has been identified for the above purpose.

10. The employees of EDCL Power Projects Ltd. (EDCL PPL) and their related liabilities have been taken over by the Company with effect from 1st April, 2010.

11. In view of Note 3(d) and Note 15 above, the previous year's figures are strictly not comparable. However, previous year's figures have been regrouped and rearranged wherever considered necessary.


Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs.17,000,000 (Previous year Rs.57,500,000).

2. Capital work in Progress includes :

a. Machinery in stock, construction /erection materials, advances for construction/erection works and machinery etc.

b. Capital advances of Rs.1,600,000 (Previous year Rs.17,800,000)

3. A scheme of arrangement (the Scheme) for amalgamation of Dhanashree Projects Limited (Dhanashree) with the Company and transfer of 7MW Ullankal Hydel Power Project Undertaking (the undertaking) to EDCL Power Projects Limited (PPL), a wholly owned subsidiary with effect from 1st April 2009 (the appointed date) has been sanctioned by the Honorable High Court at Bangalore and Calcutta under Section 391 and Section 394 of the Companies Act, 1956 vide their Order dated August 12, 2010 and September 15, 2010 respectively. The following transactions have been given effect to in the books of accounts of the Company pursuant to the approval of the scheme as above and on filing the same with the Registrar of Companies at Bangalore on 9th September, 2010 and Kolkata on 18th September, 2010 :

b) As Dhanashree is a wholly owned subsidiary, no shares are required to be issue as consideration. The difference between the existing investments and assets & liabilities transferred as above amounting to Rs.1,165,346 has been taken to capital reserve.

e) The transfer obligation is required to be discharged by issue of 35,00,000 equity shares of Rs. 10/- each aggregating to Rs.35,000,000 by PPL. Pending increase in the authorized Share Capital and allotment of the equity shares as mentioned above, the same have been included under advance against equity to subsidiaries.

f) In view of the management, there is no stamp duty leviable on transfer of property in the State of Kerala and no provision is required in this respect.

g) During the year the operations of the undertaking was managed by the company on behalf of PPL and the net amount payable to them has been considered as liability included under other liability.

h) As the scheme became effective on 18.09.2010 necessary formalities in respect of change in name for immovable properties, investment, bank accounts etc are in the process of being complied with.

4. Profit on sale of investments represents profit on disposal of investments received on amalgamation as given in Note 4 above.

5. In the opinion of the management, the current assets, loans and advances have a value on realization in the ordinary course of business, at least equal to the amount at which these are stated in the Balance Sheet.

6. The company has entered into joint venture for execution of a contract for earthwork filling and compaction. The work carried out in respect of the said contract has been included in work in process and increase/decrease in stock.

7. The Company has not yet received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act) and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under the Act has not been given.

8. Related Party disclosures pursuant to Accounting Standard -18 issued by the Institute of Chartered Accountants of India :

(a) Key Management Personnel and their relative

Mr. Amar Singh (Chairman and Whole Time Director)

Mrs. Pankaja Kumari Singh (Wife of Chairman and Whole Time Director)

Mr. Sanjiv Saraf (Executive Director)

Mrs. Indira Saraf (Wife of Mr. Sanjiv Saraf)

(b) Subsidiary Company

Ayyappa Hydro Power Limited

EDCL Power Projects Ltd. (with effect from 28th May 2009)

(c) Associates

Sarvottam Caps Limited

9. During the year the warrant holders in respect of 7,500,000 warrants allotted to promoters and independent investors on preferential basis have not exercised their option to convert the warrant into shares within eighteen months. Accordingly, the entire amount of Rs.12,40,00,000 received at the time of allotment of aforesaid warrants was forfeited and the same was transferred to Capital Reserve.

10. The 7MW Ullankal Hydro Electric project has been transferred to wholly owned subsidiary EDCL Power Projects Ltd. with effect from 01.04.2009. Further associate Company Dhanashree Projects Ltd. has been merged with the company with effect from 01.04.2009 and hence previous years figures are not strictly comparable. Previous years figures have been regrouped and rearranged wherever considered necessary.

 
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