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Notes to Accounts of KSK Energy Ventures Ltd.

Mar 31, 2015

1. Corporate Information

KSK Energy Ventures Limited ("KSKEVL" or the "Company"), was incorporated on February 14, 2001 and is primarily engaged in the development ownership and operation & maintenance of private sector power projects predominantly through its subsidiaries and joint venture. KSKEVL focused its strategy on the private sector power development market, undertaking entire gamut of development, investment, construction of power plant with supplies initially to heavy industrials operating in India and now branching out to cater to the needs of utilities and others in the wider Indian power sector.

2. Share Capital

During the year ended 31 March 2015, the Company has raised an amount of Rs 4,000 millions by issuing 40,404,040 equity shares of Rs 10/- each at a premium of Rs 89 to Qualified Institutional Buyers ("QIBs") through qualified institutions placement. The Company has raised the funds for investment in subsidiaries and Joint ventures, for meeting its capital expenditure and working capital requirement and for general corporate purpose.

3. Money received against share warrants

During the year, the Company has issued 80,808,080 Warrants of face value of Rs. 10 each to KSK Power Holdings Limited ("KPHL") with an option to apply for and be allotted equivalent number of equity shares of the face value of Rs 10/- each at a premium of Rs 89/- each on a preferential basis. Pursuant to the same, during September 2014, Company has received an amount of Rs 2,006.97 million from KPHL towards initial subscription amount (being 25% of total amount). During the March 2015, pursuant to the exercise of option attached to these warrants, the company has received an aggregate amount of Rs.681.88 million as consideration towards issue and allotment of 9,214,700 equity shares of face value of Rs 10/- each (being balance 75% of the issue price of Rs.99 per equity share). The Company has utilized the entire proceeds of the preferential issue towards meeting its capital expenditure / working capital requirements in accordance with the objects of the said issue.

4.Discount rate: The discount rate is based on the prevailing market yields of indian government securities as at balance sheet date for the estimated term of the obligations

5.Expected rate of return on planned assets: This is based on the expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations.

6. Contingent liabilities and commitments :

a) Contingent liabilities :

Year ended

31 March 2015 31 March 2014

i) Bank guarantees and letter of credits 3,732.36 5,814.84 outstanding

ii) Corporate guarantees outstanding 32,882.93 24,759.97

iii) Service tax department has issued demand order to the Company for payment of service tax amounting to Rs 505.64 million (including penalty) relating to the disagreement on availment of Cenvat Credit for the period April 2008 to September 2010 and non -payment of service tax. Further, an amount of Rs. 26.88 million ( 31 Mar 2014: Rs.25.88 million) has been paid against the demand under protest and the balance demand is stayed. However, the Company believes that the claims raised by the department are not tenable and the Company has filed an appeal against the said order before the CESTAT.

iv) The Company has received a net demand of Rs. 280.30 million (31 March 2014 :Rs 280.30 million) (including interest) from income tax department for Assessment Year 2010-11 pursuant to disallowance of certain claims / expenses. Challenging the order, Company preferred an appeal before CIT (appeals). Further, an amount of Rs. 114.85 million ( 31 Mar 2014: Rs. 114.85 million) has been paid against the demand under protest. During the current year, the CIT (Appeals) has disposed - off the appeal allowing majority of the claims made by the Company. Further the department has gone for appeal before the ITAT against the order passed by the CIT (Appeals). The Company is in process for submissions to defend the order of the CIT (Appeals).

7. Related party Disclosures:

a) Parties where control exists

Name of the party Relationship

KSK Power Venture pic Step-up holding company

KSK Energy Limited Holding company

KSK Electricity Financing India Private Subsidiary company Limited

J R Power Gen Private Limited Subsidiary company

KSK Dibbin Hydro Power Private Limited Subsidiary company

Kameng Dam Hydro Power Limited Subsidiary company

KSK Narmada Power Company Private Limited Subsidiary company

KSK Wind Energy Private Limited Subsidiary company

KSK Vidarbha Power Company Private Limited Subsidiary company

KSK Surya Photovoltaic Venture Limited Subsidiary company

Sai Maithili Power Company Private Limited Subsidiary company

KSK Wardha Infrastructure Private Limited Subsidiary company

KSK Mahanadi Power Company Limited Subsidiary company

KSK Upper Subansiri Hydro Energy Limited Subsidiary company

KSK Dinchang Power Company Private Limited Subsidiary company

KSK Jameri Hydro Power Private Limited Subsidiary company

TiLa karnaLi Hydro Electric Power Company Subsidiary company Limited

Bheri Hydro Power Company Private Limited Subsidiary company

Sai Regency Power Corporation Private Limited Subsidiary company

VS Lignite Power Private Limited Subsidiary company

Sai Wardha Power Limited Subsidiary company

Sai Power pte Limited Subsidiary company

Field Mining Ispats Limited Subsidiary company

Arasmeta Captive Power Company Limited Subsidiary company

(formerly known as Arasmeta Captive Power Company Private Limited)

b) Parties where significant influence exists and where the transactions have taken place during the year

Name of the party Relationship

Sitapuram Power Limited Joint venture

KSK Water Infrastructures Private Limited Fellow subsidiary

KSK Mineral Resources Private Limited Fellow subsidiary

KSK Energy Company Private Limited Fellow subsidiary

Raigarh Champa Rail Infrastructure Private Fellow subsidiary Limited

KSK Energy Resources Private Limited Fellow subsidiary

c) Key Management personnel

Name of the party Relationship

Mr. S. Kishore Whole-time Director

Mr. K. A. Sastry Whole-time Director

d) Equity held in subsidiaries and step down subsidiary have been disclosed under "Non current Investment", (see note no 12).

e) The Company has provided securities by way of pledge of investments for loans taken by subsidiaries ( see note no 12).

f) The holding company has pledged certain shares held in the Company as security towards the borrowings of the Company.

g) Corporate Guarantees of Rs. 44,195.06 (31 March 2014 Rs.36,957.67), Bank guarantees of Rs. 3,783.75 (31 March 2014 Rs.5,965.17) and Letter of credit limits of Rs. 1,766.66 (31 March 2014 Rs.1,684.01) has been given by the Company on behalf of subsidiaries and fellow subsidiaries.

h) Corporate Guarantees of Rs. 10,300.00 (31 March 2014 Rs.10,880.00) has been given by step-up holding Company on behalf of the Company.

8. The company is primarily engaged in the business of providing project development and corporate support services. Accordingly there are no reporateble segment as per accounting standard 17 notified under the Companies (Accounting Standards) Rules, 2006.

9. In the opinion of board, any of the assets other than fixed assets and non-current investment have a value on realization in the ordinary course of business at least equal to the amount at which they are stated on the Balance Sheet.

10. Previous year figures have been regrouped and reclassified wherever necessary to conform to the current year classification.


Mar 31, 2014

1 Nature of operations

KSK Energy Ventures Limited ("KSKEVL" or the "Company"), was incorporated on February 14, 2001 and is primarily engaged in the development of private sector power projects, currently predominantly through subsidiaries and jointly controlled entities with multiple industrial consumers in India with next level of growth coming through large base load power plant subsidiaries. KSKEVL focused its strategy on the private sector power development market, undertaking entire gamut of development, investment, construction of power plant with supplies initially to heavy industrials operating in India and now branching out to cater to the needs of utilities and others in the wider Indian power sector.

2 Contingent liabilities and commitments :

a) Contingent liabilities :

Year ended 31 March 2014 31 March 2013

I) Bank guarantees and letter of credits outstanding 5,814.84 2,853.44

ii) Corporate guarantees outstanding 24,759.97 25,219.88

iii) Service tax department has issued demand order to the Company for payment of service tax amounting to Rs 505.64 million (including penalty) relating to the disagreement on availment of Cenvat Credit for the period April 2008 to September 2010 and non -payment of service tax. Further, an amount of Rs. 25.88 million has been paid against the demand under protest and the balance demand is stayed. However, the Company believes that the claims raised by the department are not tenable and the Company has filed an appeal against the said order before the CESTAT.

iv) The Company has received a net demand of Rs. 280.30 million (31 March 2013 :Rs 280.30 million) (including interest) from income tax department for Assessment Year 2010-11 pursuant to disallowance of certain claims / expenses. Challenging the order, Company preferred an appeal before CIT (appeals). Further, an amount of Rs. 114.85 million has been paid against the demand under protest and the CIT granted stay of collection of tax till September 2014. The Company believes that all the claims / expenses claimed are allowable as per the provision of income tax act and the demand raised is not tenable and there should not be any material impact on the financial statement.

III Loans to employees as per Company''s policy are not considered.

* The above loans & advances to subsidiary fall under the category of loans & advances in the nature of loans where there is no repayment schedule and are repayable on demand.

^ Excludes interest accrued.

IV) Equity held in subsidiaries and step down subsidiary have been disclosed under "Non current Investment", (see note no 11).

V) The Company has provided securities by way of pledge of investments for loans taken by subsidiaries ( see note no 11).

VI) The holding company has pledged certain shares held in the Company as security towards the borrowings of the Company.

VII) Corporate Guarantees of Rs. 36,957.67 (31 March 2013 Rs.32,917.20), Bank guarantees of Rs. 5,965.17 (31 March 2013 Rs.4,362.48) and Letter of credit limits of Rs. 1,684.01 (31 March 2013 Rs.2,043.79) has been given by the Company on behalf of subsidiaries and fellow subsidiaries.

VIII) Corporate Guarantees of Rs. 10,880.00 ( 31 March 2013 Rs.9,605.00) has been given by step-up holding Company on behalf of the Company.

3 The company is primarily engaged in the business of providing project development and corporate support services. Accordingly there are no reporateble segment as per accounting standard 17 notified under the Companies Act, 1956.

4 In the opinion of board, any of the assets other than fixed assets and non-current investment have a value on realization in the ordinary course of business at least equal to the amount at which they are stated on the Balance Sheet.

5 During the year the Company has assigned certain of its development portfolio assets along with associated liabilities to its wholly owned subsidiary KSK Electricity Financing India Private Limited for independent development pursuit.

6 Previous year figures have been regrouped and reclassified wherever necessary to conform to the current year classification.


Mar 31, 2013

1 Nature of operations

KSK Energy Ventures Limited f hCSKEVL* or Ihe "Company"), was incorporated an February 14, 2001 and Ie primarily engaged in me Development of private sector power projects, currently predominantly through subsJdEanes and Jointly controflod wffi*» with ramtiplo industrial consumers In India with, next krvoi of growth coming through largo base load power pEatf subsidiaries. KSKEVL focused Ms strategy on the private sector power development market undertaking entire gamut of development, Inveslment, conatruclion of power plant with supplies iitibaJry to heavy industrials operating in India and nowbranchlno, out Jo cater to tha needs of utilities and others In the wider Indian power sector

2 Contingent liabilities and commrtmvnte:

Concingemnaoiities .

As at

31 March 2013 31 March 2012

I) Bark guarantees and latter of credits outstanding 2,053.44 343.73

ID Corporate guaranlses outatandjng 2.219 223.03

IN) Service tax department has Issued demand order (Rs. the company lor payment o1 service tax amounting to 7 505.64 million [including penalty) relating In the disagreement on avajlment of Genvat Credit for the period April 2006 to September 2010 and non -payment or service tax. However, the Company believes that the Ctains raised by the department are not tenable end the Company has filed an appeal againal the said order before the CESTAT.

hi) The Company has received a net demand Ol * 280.3D (including inlereslj from income tan department foe Assessmenl Vear 5010-11 pursuant to disallowance. at c«tan claims h'' oxponees. Challenging the ordof, Company prsfarrad an appeal betwCiT
3 Segment Reporting

The Segment report ha* been pnaperad m accordance. *i''n the Accounting StandBfC 17 "Segment Reporting".There Is

For lhe purpose of business segments, the Company & engaged In two segments, viz.. Project development and power aanerallrjn.

4 During the yoar onded 31 March 20T2, pursuant 1o The SharaholdBra and Board nT Directors approval, the Company has sold rts 2(5 wlndrmlla aa$ata aggregating to 31 00 MW situated in the stale of Tamllnadu to foe subsidiary, K§K Wind Energy Prwala Limited for a total consideration of T 883.70 m I km and Incurred a loss of 7 291.93 million and tine same, b otodosed as exceptional Hem in accordance wtth AS-5 ''Net Frofll or Low for the Period, Pnor Period Hems end Ghana** li Accounting Policies. Th*followng «tal*m#it shows the revenue andexpenseeol disconiinuino operations.

5 In the ordinary course or business at least equaJ Do Ihe amount slwhlch they are stetBd on the Balance Sheet

6 Previous year figures have been regrouped end reclessifted whenever necessary to conform to me cunent years cifiMJficaticn.


Mar 31, 2012

1 Nature of operations

KSK Energy Ventures Limited ("KSKEVL' or the "Company"), was incorporated on February 14, 2001 and is primarily engaged in the development of private sector power projects, currently predominantly through subsidiaries and jointly controlled entities with multiple industrial consumers in India with next level of growth coming through large base load power plant subsidiaries. KSKEVL focused its strategy on the private sector power development market, undertaking entire gamut of development, investment, construction of power plant with supplies initially to heavy industrials operating in India and now branching out to cater to the needs of utilities and others in the wider Indian power sector.

1) Details of security provided for various credit facilities

a Secured by way of hypothecation on movable properties of the Company and pledge of certain equity shares of the Company held by KSK Energy Limited, holding Company.

b Secured by first pari-passu charge on fixed assets, current assets of the Company and corporate guarantee of KSK Power Ventur pic.

c Secured by pledge of deposits.

a. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

Discount rate: The discount rate is based on the prevailing market yields of Indian government securities as at Balance Sheet date for the estimated term of the obligations

Expected rate of return on planned assets: This is based on the expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations.

2 Contingent liabilities and commitments a Contingent liabilities

As at 31 March 2012 31 March 2011

(I) Bank guarantees and letter of credits outstanding 3,493.73 3,837.54

(ii) Corporate guarantees outstanding 8,223.03 10,719.50

(iii) Service tax department has issued demand order for payment of service tax amounting to Rs 505.64 (including penalty) relating to the disagreement on availment of Cenvat Credit for the period April 2008 to September 2010 and non -payment of service tax. However, the Company believes that the claims raised by the department are not tenable and the Company has filed an appeal against the said order before the CESTAT.

b Estimated value of the contracts to be executed on capital and other account and not provided for:

As at

31 March 2012 31 March 2011

(i) Capital Commitments 0.74 2.78

(ii) Other commitment:

The Company has entered into an arrangement for buying out an additional stake in KSK Mahanadi Power Company Limited (a subsidiary). The commitment pending under the arrangement as at 31 March 2012 is Rs. 3,904.55. (31 March 2011:Rs 4,150.13).

3 Operating leases

The Company has entered in to certain operating lease agreements. An amount of Rs 11.66 (31 March 2011: Rs. 15.76) paid under such agreements has been disclosed as "Rent" under other expenses in the Profit and loss statement.

The schedule of future minimum rental payments in respect of non-cancellable operating leases is setout below:

4 Segment Reporting

The Segment report has been prepared in accordance with the Accounting Standard 17 "Segment Reporting". There is only one reportable geographical segment as all the business and operations of the Company are carried out in India.

For the purpose of business segments, the Company is engaged in two segments, viz., Project development and power generation.

1) Equity held In subsidiaries and step down subsidiary have been disclosed under "Investment", (see note no 11).

g) The Company has provided securities by way of pledge of investments for loans taken by subsidiaries (see note no 11).

h) The holding company has pledged certain shares held in the Company as security towards the borrowings of the Company.

i) Corporate guarantees of Rs.17,098.00 (31 March 2011 Rs.38,120.00), Bank guarantees of Rs.4,809.08 (31 March 2011 Rs.3,562.16) and Letter of credit limits of Rs.1,338.85 (31 March 2011 Rs.457.98) has been given by the Company on behalf of subsidiaries and fellow subsidiaries.

j) Corporate guarantees of Rs.11,255.00 (31 March 2011 Rs.11,555.00) has been given by step-up holding Company on behalf of the Company.

5 During the year ended 31 March 2012, pursuant to the Shareholders and Board of Directors approval, the Company has sold its 26 windmills assets aggregating to 31.80 MW situated in the state of Tamilnadu to its subsidiary, KSK Wind Energy Private Limited for a total consideration of Rs. 883.70 million and incurred a loss of Rs.291.93 million and the same is disclosed as exceptional item in accordance with AS-5 "Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies". The following statement shows the revenue and expenses of discontinuing operations.

6 During the year ended 31 March 2012, Company has sold Investment in Sai Maithili Power Company Private Limited for a total consideration of Rs. 3.50.

7 Pursuant to completion of open offer during the year, shareholdings of the promoters and promoter group have gone up from 54.94% to 74.94%.

8 In the opinion of the Board of Directors, sundry debtors, loans and advances as at 31 March 2012 stated would be realized in the ordinary course of the Company's business are expected to produce at least the amount at which they are stated in the Balance Sheet.

9 Previous year figures have been regrouped / reclassified to conform to the classification of the current year.


Mar 31, 2011

1. CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS

1) Contingent liabilities

Particulars As at March 31

2011 2010

Bank guarantees / Letter of credits outstanding 3,837.54 5,075.90

Corporate guarantees 10,719.50 5,780.42

2. OPERATING LEASES

The Company has entered in to certain operating lease agreements. An amount of Rs 15.76 (March 31, 2010: Rs. 12.85) paid under such agreements has been disclosed as "Rent" under Administration and operating expenses in the Profit and Loss account.

3. As at March 31, 2011 there are no amounts including interest payable to Micro, Small and Medium enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, based on the information available with the Company.

4. EMPLOYEE BENEFIT PLANS

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

5. RELATED PARTY DISCLOSURES

i) Parties where control exists

Name of the party Relationship

1. KSK Power Ventur plc Step-up Holding company

2. KSK Energy Limited, Mauritius Holding company

3. KSK Electricity Financing India Private Limited Subsidiary company

4. J R Power Gen Private Limited Subsidiary company

5. KSK Dibbin Hydro Power Private Limited Subsidiary company

6. Kameng Dam Hydro Power Private Limited Subsidiary company

7. KSK Narmada Power Company Private Limited Subsidiary company

8. KSK Wind Energy Private Limited ( formerly Bahur Power

Company Private Limited) Subsidiary company

9. KSK Vidarbha Power Company Private Limited Subsidiary company

10. Sai Maithili Power Company Private Limited Subsidiary company

11. KSK Wardha Infrastructure Private Limited ( formerly KSK Technology

Ventures Private Limited) Subsidiary company

12. KSK Mahanadi Power Company Limited Subsidiary company

13. KSK Upper Subansiri Hydro Energy Private Limited Subsidiary company

14. KSK Dinchang Power Company Private Limited Subsidiary company

15. KSK Jameri Hydro Power Private Limited Subsidiary company

16. Tila Karnali Hydro Electric Company Private Limited Subsidiary company

17. Sai Regency Power Corporation Private Limited Step-down subsidiary

18. VS Lignite Power Private Limited Step-down subsidiary

19. Wardha Power Company Limited Step-down subsidiary

20. Arasmeta Captive Power Company Private Limited Step-down subsidiary

21. Field Mining and Ispats Limited Step-down subsidiary

ii) Parties where significant influence exists and where the transactions have taken place during the year Name of the party Relationship

1. Sitapuram Power Limited Joint venture

2. S N Nirman Infra Projects Private Limited Fellow subsidiary

3. KSK Water Infrastructures Private Limited Fellow subsidiary

iii) Key Management Personnel Name of the party Relationship

1. S. Kishore Whole-time Director

2. K .A .Sastry Whole-time Director

3. K .B .Raju Director

6. SEGMENT REPORTING

The Segment report has been prepared in accordance with the Accounting Standard 17 "Segment Reporting". There is only one geographical segment as all the business and operations of the Company are carried out in India.

For the purpose of business segments, the Company is engaged in two segments, viz., Project development and power generation.

7. In the opinion of the Board of Directors, sundry debtors, loans and advances as at March 31, 2011 stated would be realized in the ordinary course of the Company's business are expected to produce at least the amount at which they are stated in the Balance Sheet.

8. Additional information pursuant to the provisions of Paragraphs 3 and 4 of Part II of Schedule VI of the Companies Act, 1956 - to the extent Not Applicable or Nil has not been furnished.

9. Demerger of undertaking of Wardha Power Company Limited under Scheme of Arrangement under section 391 to 394 read with sections 100 to 103 of the Companies Act, 1956.

A scheme of arrangement (hereinafter referred to as Scheme) between the Wardha Power Company Limited (Transferor Company) and KSK Mahanadi Power Company Limited (Transferee Company) and its respective lenders and shareholders was approved by the Honorable High Court of Andhra Pradesh vide its order dated February 26, 2010. The scheme, amongst others, provided demerger of 3600 MW power generating facility at Nariyara, Janjgir- Champa District, in the State of Chhattisgarh (hereinafter referred to as Demerged Undertaking) on a going-concern basis with all its assets and liabilities as defined in the scheme. The appointed date for demerger is 1 August, 2009. The scheme has become effective from March 31, 2010 and demerged undertaking stands transferred to and vest in as a going- concern to transferee company at its book values.

10. The Company has issued 100 million 8% Compulsorily Redeemable Preference Shares of Rs 10/- each amounting to Rs. 1,000 to L&T Infrastructure Finance Company Limited on October 1, 2010.

11. Previous year figures have been regrouped / reclassified wherever necessary to conform to the current year's classification.












Mar 31, 2010

1. Contingent liabilities

Particulars As at March 31

2010 2009

Bank guarantees outstanding 5,075.90 2,980.20

Corporate guarantees 5,780.42 -

Discount rate: The discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligations.

Expected rate of return on plan assets: This is based on the expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations.

Salary escalation rate: The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors

2. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

As at March 31, 2010 there are no amounts including interest payable to Micro, Small and Medium enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, based on the information available with the Company.

3 .Related party disclosures

a) Parties where control exists

Name of the Related Party Relationship

K&S Consulting Group Private Limited Ultimate holding company

KSK Energy Limited, Mauritius Holding company

KSK Electricity Financing India Private Limited Subsidiary company

JR Power Gen Private Limited Subsidiary company

KSK Dibbin Hydro Power Private Limited Subsidiary company

Kameng Dam Hydro Power Private Limited Subsidiary company

KSK Narmada Power Company Private Limited Subsidiary company

Bahur Power Company Private Limited Subsidiary company

KSK Vidarbha Power Company Private Limited Subsidiary company

Sai Maithili Power Company Private Limited Subsidiary company

KSK Technology Ventures Private Limited Subsidiary company

KSK Mahanadi Power Company Limited Subsidiary company

Sai Regency Power Corporation Private Limited Step-down subsidiary

VS Lignite Power Private Limited Step-down subsidiary

Wardha Power Company Limited Step-down subsidiary

Arasmeta Captive Power Company Private Limited Step-down subsidiary

b) Parties where significant influence exists and where the transactions have taken place during the year

Name of the Related Party Relationship

Sitapuram Power Limited Joint venture

KSK Mineral Resource Private Limited Fellow subsidiary

KSK Energy Resources Private Limited Fellow subsidiary

KSK Energy Company Private Limited Fellow subsidiary

KSK Investment Advisor Private Limited Fellow subsidiary

KSK Surya Photovaltaic Venture Private Limited Fellow subsidiary

c) Key Management Personnel

Name of the Related Party Relationship

S. Kishore Whole-time Director

K .A .Sastry Whole-time Director

K .B .Raju Whole-time Director

The directors are covered under the Companys gratuity policy along with other employees of the Company. Proportionate amount of gratuity is not included in the aforementioned disclosure.

3. In the opinion of the Board of Directors, sundry debtors, loans and advances as at March 31, 2010 stated would be realized in the ordinary course of the Companys business are expected to produce at least the amount at which they are stated in the Balance Sheet.

4.The information required as per clause 4C and notes thereon of part II of Schedule VI to the Companies Act, 1956

Licensed and installed capacity, actual production and sales:

5.Additional information pursuant to the provisions of Paragraphs 3, 4, and 4D of Part II of Schedule VI of the Companies Act, 1956 - to the extent Not Applicable or Nil has not been furnished.

6.During 2008-09, the Company invested Rs. 157.25 for acquiring 2,700,000 ordinary shares of GBP 1/- each of KSK Emerging India Energy Fund Limited. However, due to global recession and internal problems faced by shareholders of KSK Emerging India Energy Fund Limited, the members of fund decided to liquidate the fund. The resolution to wind up the fund was passed by the shareholders at an extraordinary general meeting held in the Channel Islands on January 22,2009.The Company has received 91.70 pence per share on full and final settlement resulting in gainofRs. 23.93.

7.During the year ended March 31, 2010, the Company has raised an amount of Rs. 5,159.25 by issuing 26,525,714 equity shares of Rs 10/- each at a premium of Rs 184.50 to Qualified Institutional Buyers ("QIBs") through Qualified Institutions Placement under Chapter VIM of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended. The Shares were allotted on November 17, 2009 and as a result the paid up share capital has increased to Rs. 3,726.30. The Company has raised the funds for Investment in new projects, expansion of existing projects, repayment of loans, working capital and general corporate purpose.

8. During the year the Company has made investment of Rs. 0.49 in the equity shares of KSK Mahanadi Power Company Limited. Consequently, KSK Mahanadi Power Company Limited has become 100% subsidiary of the Company.

9. Demerger of undertaking of Wardha Power Company Limited under Scheme of Arrangement under section 391 to 394 read with sections 100 to 103 of the Companies Act, 1956.

A scheme of arrangement (hereinafter referred to as Scheme) between the Wardha Power Company Limited (Transferor Company) and KSK Mahanadi Power Company Limited (Transferee Company) and its respective lenders and shareholders was approved by the Honorable High Court of Andhra Pradesh vide its order dated February 26,2010. The scheme, amongst others, provided demerger of 3600 MW power generating facility at Nariyara, Janjgir-Champa District, in the State of Chhattisgarh (hereinafter referred to as Demerged Undertaking) on a going-concern basis with all its assets and liabilities as defined in the scheme. The appointed date for demerger is August 1, 2009. The scheme has become effective from March 31, 2010 and demerged undertaking stands transferred to and vest in as a going- concern to transferee company at its book values.

10.The following are the political contributions made during the year within the limits prescribed Under section 293A of the Companies Act,

11.Previous years figures have been regrouped / reclassified to conform to the classification of the current year.

 
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