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Notes to Accounts of Indowind Energy Ltd.

Mar 31, 2015

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Mar 31, 2014

1.1 Corporate Information

The Company was incorporated on 19th July 1995 as private limited company and was converted into a deemed public limited company effective 30th September 1997. The Registered office is situated at Kothari building,4thFloor,No.114,MahatmaGandhiSalai,Nungambakkam, Chennai-600034. The Company is engaged in the business of Generation & Distribution of Powerthrough Windmill

Note 2 Additional information to the financial statements

As at 31 March, 2014 As at 31 March, 2013 Rs. In lacs Rs. In lacs

2.1 Contingent liabilities and commitments (to the extent not provided for)

Income Tax-various years 800.14 197.43

Service Tax: FY2007 -08 214.83 214.83

VAT: FYs 2007-08 and 2008-09 76.09 76.09

Others 150.00 -

2.2 Disclosure as per Clause 32 of the Listing Agreements with the Stock Exchanges Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties:

Employee benefit plans

Defined contribution plans

The Company has provided for retirement benefits to the employees such as Gratuity, Provident Fund and ESI. The Company hasformulated in consultation with the Life Insurance Corporation of India, for Gratuity benefits, necessary benefit plans, the details of which are asfollows:_

2.3 Foreign Currency Convertible Bonds

Out of 30 Mr, USD Bonds 15 Mn redeemed. The Company has expressed willingness to convert the balances into shares as per the terms and conveyed the trustee (BNY) to take intiatLforthesame.

The Company has recognised deferred tax asset on unabsorbed depreciation to the extent of the corresponding deferred tax liability on the difference between the book balance and the written down value of fixed assets under Income Tax (or) The Company has recognised deferred tax asset on unabsorbed depreciation and brought forward business losses based on the Management''s estimates of future profits considering the non-cancellable customer orders received by the Company IT

Previous year''s figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

Mar 31, 2013

1 Corporate Information

The Compnay was incoporated on 19th July 1995 and having its registered office at Kothari building,4th Floor, No.114, MahatamaGandhi Salai, Nungambakkam, Chennai -600034.

The Company is engaged in the business of Generation & Distribution of Power through Windmill owned and also operates the Windmill owned by its Associate " Indus Finance Corporation Limited" on its behalf. The company engage itself in construction /assembling of Windmill on a turnkey project basis.

2.1 Foreign Currency Convertible Bond

During the year, the company has redeemed $8.5 Million out of $15 Million (i.e. 50% of FCCB) and balance yet to value of fixed assets under Income Tax (or) The Company has recognised deferred tax asset on

Note 3 Previous year''s figures

3 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s

Mar 31, 2012

1.1 Monies received against share warrants

The Board of Directors of the Company at their meeting held on 29th October, 2011 forfeited an amount of Rs.1,90,90,000/- being the amount transferred from Share application money pending allottment received for share warrants based on the terms and conditions of the issue of the share warrants.

1.2 Share application money pending allotment

During the year the Company transferred from Share Application Money Pending Allotment to Monies Received against share warrants an amount of Rs.1,90,90,000/,

1.3 Contingent liabilities and commitments (to the extent not provided for)

Income Tax: AYs 1998-99,2004-05,2006-07 and 2007-08 197.43 197.43 Service Tax Asset:FY 2007-08 215.46 VAT: FYs2007-08 and 2008-09 76.09 76.09 The Company has contracts entered in various currencies for supply of projects, sale of Carbon Credits, capital and fund raising activities which carry foreign currency risk apart from penalties for not providing LC facilities for taking delivery, getting statutory approvals, release of funds in time, repayments etc. The company also has raised / certain rights to raise claims on counter parties. There may arise certain claims on the company and company has also raised / shall raise certain demands on the counter parties. The Company has not provided for such contingencies as of date. The Company may have to provide for such contingencies to the tune of Rs.20 to Rs.30 crores in future from the share premium account or provide as expenditure to be written off over a period of time as they are not arising out of regular operations of the company and are extra ordinary in nature.

2 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped rectified wherever necessary to correspond with the currentyear's classification /disclosure.

Mar 31, 2011


Equity share capital

(i) The Equity share Capital includes 26,207,108 Equity Shares of Rs 10/- each allotted as fully paid up Bonus shares as follows:-

500,000 Equity Shares in 1997-1998 by capitalization of Reserves

500,000 Equity shares in 1998-1999 by capitalization Share Premium

7,530,000 Equity Shares in 2003-2004 by capitalization of share premium issue @ the ratio 1:1

7,530,000 Equity Shares in 2004-2005 by capitalization of share premium issue @ the ratio of1:2

1,01,47,108 Equity Shares in 2005-2006 by capitalization of reserves by issue @ the ratio of 2:5

(ii) The Equity Share Capital includes 5,037,778 Equity shares of Rs 10/- each allotted as fully paid up Shares on conversion of Convertible Preference Shares as follows:-

120,000 Equity Shares of Rs. 10/- each in 1998-1999 at a premium of Rs.490/-

100,000 Equity Shares of Rs.107- each in 2000-2001 at a premium of Rs.490/-

2,040,000 Equity Shares of Rs.107- in 2001 - 2002 of which 40,000/- shares were issued at a premium of Rs.490/- and 2,000,000/- shares at par.

2,777,778 Equity Shares of Rs.10/- in 2004- 2005 at a premium of Rs.8/-.

(iii)The Equity Share Capital includes 10,000 Equity Shares allotted as fully paid up Shares for considerationforLand,issuedduring1999-2000atapremiumofRs.50/-.

(iv)The company, during the year 2005-06, allotted 9,42,000 Equity shares at a premium of Rs. 90 per Share to discharge its liability against capital goods.

(v) The company, during the year 2007-08, allotted 1,12,84,600 Equity shares at a premium of Rs.55 per share through public issue of shares.

(vi)The Company, during the year 2009-10, allotted 20,00,000 Equity shares at a premium of Rs. 28.18 per share, by conversion of warrants.


Reserves and surplus includes adjustment made in value of certain assets in line with their earning potential and reversal of excess provision of earlieryears.


a. Term loan availed from Axis Bank Limited, secured against the motor vehicles of the company. Amount outstanding ason31st March 2011 -Rs. 2,617,041.

b. Term loan availed from Kotak Bank Limited, secured against the motor vehicles of the company. Amount outstanding as on 31st March 2011-Rs.2,659,352.

c. OCC availed from Bank of India, against the hypothecation of stocks. Amount outstanding as on 31st March 2011-Rs.33,250,556.

d. Term loan from Andhra Bank, Ahmadabad secured by 5 Wegs situate in the State Tamil Nadu Outstanding as on 31st March 2011 Rs.35,502,464.

e. During the year the Company has availed a term loan from India Renewable Energy Development Company Limited, Delhi secured by 6 Wegs situated in the State of Karnataka Outstanding as on 31st March 2011 Rs.318,661,090.


Sundry creditors and trade creditors are subject to confirmation.


a) Work-in-progress-Agri Division

Fixed assets include Rs. 4,506,507/-spent for the agricultural division to be written off over the period of time proportionate to the substantial agricultural income that would accrue to the company.

b) Plant & machinery

Plant & Machinery includes revaluation amount of Rs. 6,000,000/- which has depreciated to Rs. 3,614,000/-.

c) Guarantee Deposits

The deposits constitute deposits given to owners of the WEGs which are maintained by the company. The Company has provided security deposits to extent of Rs. 738,984,727 of the owners of windmills and the concern windmills are under company's management.


Investments of Rs. 3,76,15,891/- includes investments made in Indowind Power Private Limited for an amount of Rs. 4,25,000/-which is the company's subsidiary.


Sundry debtors recoverable in cash or in kind are unsecured and are subject to confirmation.


Loans and advances includes Trade & Other Advances totaling to Rs. 520,821,470/- which are unsecured and recoverable in cash or kind and are subject to confirmation includes advances to subsidiary company Rs 55,64,374/-


This relates to the expenses incurred in connection with Initial public offering of Equity shares of the Company and Issue of Foreign Currency Convertible Bonds to the extent not written off during the year.


The details of related parties as identified by the management are as under:

i) Key Management Personnel

ShriBala KV - Chairman

Shri Ravindranath K.S. - Whole Time Director

Shri Niranjan Jagtap - Director

Shri Jayaraman T R - Director

ii) Associates

Indus Finance Corporation Ltd. Indonet Global Ltd. Loyal Credit & Investments Ltd. Subuthi Investments Pvt. Ltd. Indus Nutri Foods Pvt. Ltd. Bekae Properties Pvt. Ltd. Bewind Energy Pvt. Ltd. IndEco Ventures Ltd. RavelloAdvertisingPvt.Ltd. Soura Capital Pvt Ltd. Indus Capital Pvt. Ltd.

iii) Subsidiary

Indowind Power Pvt. Ltd.


The Company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances is required to be made and no amounts have been written off or written back during the year in respect of debts due from or to related parties. There are no other related parties where control exists that need to be disclosed.


During the year 2007-2008, the company issued 5 years 2.5% Coupon US$ denominated Foreign Currency Convertible Bonds (FCCB) aggregating to US$ 30 million (INR. 118,47,00,000 as on date of issue) comprising of 300 US bonds of US $ 1,00,000 each to finance capital expenditure. The bond holders have an option of converting these bonds into equity shares at an initial conversion price of Rs. 167.11 per share (Face value Rs.10 each) with a fixed rate of exchange on conversion of Rs. 39.405 / US$ at any time prior to close of business on 21st December 2012, unless redeemed. The FCC Bonds have been restructured with the existing Bondholders. Accordingly, the FCCB will be Zero Coupon Bonds and will have a 50% mandatory conversion (i.e., US$ 15 million) in to ordinary equity shares at a price equilant to the 10 DMA subject to a cap of Rs.65/-. and the balance 50% of the Bonds (i.e., US$ 15 million) will have the option to convert at the same premium level applicable for the mandatory conversion price or redeem @ 106.724 % upon maturity on December 21,2012. The Process is under progress for completion



No appropriation made during the year with respect to Capital Redemption due to change of accounting period from July to June to April to March.


(b) Projects

Project under implementation - Opening 0. 95 MW

New projects commenced during the year 28.00 MW

Project under implementation - Closing 28.95 MW

(iii) Expenditure in Foreign Currency

- Travel Rs.NIL/- (previous year NIL)

(iv) Remuneration paid to Directors

The company has paid Rs.1,032,837/- by way of remuneration to the whole time director. Sitting fees paid during the year Rs. 105,000/-

(vi) Information with regard to other matters specified in Schedule VI of the Companies Act, 1956, are either Nil, or not applicable to the Company for the period under Audit.

(vii)Value of imports during the year RsNIL/-( Previous Year NIL)


Income Tax demand for the AY 1998-99 is Rs. 2,654,944/- ,for AY 2004-05 is Rs. 5,38,759 for AY 2006-07 is Rs.10,985,773/- and for the A Y 2007-08, Rs. 55,63,470/- are under litigation. The company has been legally advised that the demand is likely to be deleted or substantially reduced. The company has preferred appeals and the said appeals are pending before the appellate authorities.

In the case of Foreign Currency Convertible Bonds, in case of redemption at the maturity date i.e 21st December, 2012, the applicable forex rate is contingent in nature for which no provision is required as perThe Reserve Bankof India's guidelines.

The company has deposited, with The Hon'ble High Court of Madras, an amount of Rs.10.81 Crores in the matter relating to the disputed claims of ICICI Bank Limited relating to sale of Wind mills to the company, Lease rentals and issues relating to Preference shares are settled. Both the parties have raised claims against each other and waiting for the final outcome from the competent authorities. Hence no amount is quantified. Meanwhile the ICICI Bank Limited has realized around Rs 6.93 Crores by selling 14,65,899 Equity shares of the company, which the company is claiming.


During the year company recognised an impairment loss of Rs. 9,33,92,555/- on the Plant & Machinery whose generating ability had diminished.


Based on Accounting Standard 17,issued by the Institute of Chartered Accountant of India the Company's primary business segment is wind Power generation, project sale, financial income and other income

17. Retirement Benefits

Consist of the following:

Provident Fund Rs 4.29 Lakhs

Employees State Insurance Rs 0.30 Lakhs

19 Previous year's figures have been regrouped wherever necessary and as the company's current Financials are for 9 months period, the current period's figures are not comparable with previous year's figures.


Profit After tax Rs. 39,602,512

No. of Shares Rs. 49,741,486

Earning Per share (Annualized) Rs. 0.80

Oct 25, 2:05 pm
Oct 25, 2:14 pm
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