Mar 31, 2016
1. Rights, preferences and restrictions attached to equity shares
The company has only one class of shares referred to as equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive surplus from sale of assets after setting off of the liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.
2. Nature of Security for term loans
A. Working Capital Term loans from State Bank of India (SBI) is secured by:
(i) First charge on the entire fixed assets of company, present and future on pari passu basis with other term lender, SREI Equipment Finance Pvt Ltd
(ii) Registered mortgage of leasehold rights of land measuring 4.12 Ha. Bearing Survey Nos. 462, 467,636, 635/2, 625/1, 634/1, 635/3 and 635/4 situated at Bambooflat, Ferrargunj Tehsil, Andaman, A& N Islands, including assignment of Power Purchase Agreement, EPC contract and O&M contract, insurance policy and other project documents.
(iii) Collateral security by way of:
(a) Pledge of 84,37,388 shares of Suryachakra Power Corporation Limited (face value of Rs.10).
(b) Vacant urban residential plot no. 74 admeasuring 350 sq.yards, Survey Nos.300P, 302, 309P, in the name of Shri M. Seshavatharam and situated in Krishnaja Hills, Village: Bachupally, Mandal: Quthubullapur, District Ranga Reddy, Andhra Pradesh.
(c) Open vacant plots of land in the name of Shri M. Naveen Babu admeasuringâ 1.47 acres RS No.368; 0.97 acre RS No.09; 0.38 acre RS No.11. All three at village: Thorreddu, Rajahmundry Rural Mandal, District East Godavari, Andhra Pradesh. 3.02 acres RS No.246/1, village: Madhurapudi, Korukondala Mandal, District East Godavari, Andhra Pradesh.
(d) 6 Nos. vacant residential plots in the name of Shri M. Naveen Babu in Western Block No.6-95, 6-95/1, 6-97, 6-97/1, 697/3 and 6-96 admeasuring 2082.88 sq. yards situated in RS 124/4, at village: Thorreddu, Rajahmundry Rural Mandal, District East Godavari, Andhra Pradesh.
(iv) Personal Guarantee by Dr. S.M Manepalli, Managing Director, Shri M. Seshavatharam and Smt T. Sreelatha relatives of Director and Shri M. Naveen Babu,
(v) Corporate guarantee by Mauktika Energy Private Limited and Manepalli Investments Private Limited.
B. Term loan from SREI Equipment Finance Private Limited is secured by:
(i) First charge on all movable and immovable assets, present and future of the company in favour of SREI on a pari-passu basis with SBI.
(ii) Assignment in favour of SREI, SBI on a pari-passu basis, of all rights titles and interests of the company in, to and under all assets of the project and all project documents, insurance policies, permits/approval etc, to which the company is a party and all other contracts relating to project
(iii) Pari-passu first charges on companyâs all the accounts including but not limited to Trust and Retention Account and the Debt-Service Letter of Credit / Reserve Account.
(iv) The Equity Shares held by promoters in the project company (minimium 51%) shall be pledged to SREI and SBI on a pari-passu basis.
(v) Non-disposal undertaking by Caterpillar and BSES for not disposing off their respective equity shares of SPCL during the currency of the credit facilities sanctioned to SPCL without the written consent of SREI and SBI.
3. Terms of repayment of secured term loans
(i) Working capital term loan from State Bank of India (Kolkata) carries an interest of 12.75% per annum and is repayable in sixty nine monthly unequal installments. First sixty months @ Rs.35,40,000 each and next eight months @ Rs.39,30,000 each and the last installments @ Rs.39,60,000.
(ii) Term loan form SREI Equipment Finance Private Limited carries an interest of 19.5% per annum. The loan outstanding as on the date of the balance sheet has fallen due for repayment.
4. Nature of Security for Cash Credits
Cash Credits from State Bank of India is secured by:
(i) Exclusive first charge on the entire current assets of the company both present and future.
(ii) Assignment of LC from Andaman and Nicobar Administration
(iii) Collateral security on second charge on all fixed assets of the company
Note: 5
Disclosures under Section 22 of Micro, Small and Medium Enterprises Development Act, 2006
The Ministry of Micro, Small and Medium Enterprises has issued an office Memorandum dated August 26, 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allotted after filing of the Memorandum. However, the Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at year end together with interest paid / payable as required under the said Act, have not been given. Further in the view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 is not expected to be material. The Company has not received any claim for interest from any supplier under the said Act.
Note:
(a) Loans and Advances shown above, fall under the category of âLong Term Loans & Advancesâ in nature of Loans. No repayment schedule has been specified in respect of these loans.
(b) All the above loans and advances are interest free.
B. Investment by the loanee in the shares of the Company and subsidiaries
None of the loanees and loanees of subsidiary companies have made investments in shares of the Company.
(i) Investment by Suryachakra Global Enviro Power Limited in itâs subsidiaries, in equity shares :
Note: 6.
Revenue from A & N Administration
(i) The Companyâs revenue from sale of electricity is based on the Power Purchase agreement (PPA) entered into with the Andaman and Nicobar (A & N) Administration. The PPA is for a period of 15 years initially shall have an extension of the terms and the effective terms of 3 further periods of 5 years each and contains a set of pre-defined formulae for calculation of the revenue to be billed on a monthly basis. Such billings as per terms of the PPA include a fixed charge payment, a variable charge payment, incentive payment, foreign exchange adjustment and change-in-law adjustment.
(ii) The Company, for the purpose of determining the monthly billings, invoices the A & N Administration based on the costs and formulae as envisaged in the PPA and as determined by the Order of Joint Electricity Regulatory Commission (JERC), Guregoan dated 29th April, 2015. Pending final confirmation and acceptance of actual cost and the formulae by the A & N Administration, no adjustment is made to the revenue. Such adjustments, if any will be made in the period in which the amount becomes determinable and is confirmed by the A & N Administration.
(iii) Revenues for the year ended March 31, 2016 include an amount of Rs.6,00,93,376 (Previous year: Rs.4,93,44,300 ) billed by the Company as per applicable provisions of PPA / JERC Order dated 29th April 2015, which has been rejected / withheld by the A & N Administration on the grounds of the technical interpretation of the formulae for computation of such charges. Aggregate receivables as at March 31, 2016 on such withheld amounts works out to Rs. 14,26,01,061/- (Previous year: Rs. 23,05,07,685/ -) on account of such rejections/ withheld amounts. Further, as at 31st March 2016, the Company also has to receive an amount of Rs. 12,75,74,329/- from A & N Administration towards interest on the above stated rejections or withheld amounts which have been recognized in earlier years. Management is pursuing the matter and is confident of recovering the amount. The amount so far recognized in the books of financial statements upto 31st March 2016 is a part of claim preferred on A & N Administration. In this regard, Honorable Supreme Court of India vide its Order dated 10th May 2016, Ordered A & N Administration to deposit an amount of Rs. 15 Crores with Supreme Court for the purpose of consideration of interim relief.
(iv) During the year ended 31st March 2016, the Company has enforced the Letter of Credit facility extended by the A & N Administration in its favour and encashed an amount of Rs. 14,80,00,000/- against the amounts withheld by the A & N Administration. State Bank of India which has given Letter of Credit in favour of the Company on behalf of the A & N Administration has credited the said amount to the Companyâs Working Capital Account without releasing the funds to the Company. Aggrieved by the action of the Company and the Bank, the A & N Administration has approached the Division Bench of High Court at Kolkata for reversal of encashment. Dues from A & N Administration stated in Para (iii) above were net of the said LC encashment amount.
Status of the subsidiaries is as follows:
(a) Suryachakra Global Enviro Power Ltd (SGEPL): - Disinvestment of Stake
Suryachakra Global Enviro Power Limited (SGEPL), wholly owned subsidiary of the Company along with its subsidiaries engaged in the generation and sale of power have incurred substantial losses and the net worth of all these subsidiaries has been fully eroded. In view of high input cost, operations of all the subsidiary companies were suspended from the financial year 2011-12 onwards.
As a measure of prudence, the company, during 2014 - 15 has made a provision of Rs. 66,83,37,722/- towards diminution in the value of investments and during 2011-12 and 2014-15 made a provision aggregating to Rs. 38,31,28,691/- towards advances given to the subsidiaries as doubtful.
Further, during the year, pursuant to the Board resolution dated 3rd June, 2015 the Company sold its stake in SGEPL for a sale consideration of Rs. 6,27,080/-. This has resulted in a total loss of Rs. 89,04,89,883/-. The loss for the year (net of provisions made in 2014-15 aggregating to Rs. 66,83,37,722/- towards diminution in value of investments) amounting to Rs. 22,21,52,161/
- has been charged off to Statement of Profit and loss as Exceptional Item. (Refer Note No. 25).
Secured loan lenders of SGEPL and itâs subsidiaries have issued notices under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002(SARFAESI Act) and Winding up Petitions Under Section 433 and 434 of Companies Act 1956. Except one Power Plant owned by M/s. Sri Panchajanya Power Private Ltd at Hingoli, Maharashtra all other three plants and one Plant in project stage were taken over by the respective secured loan lenders. The lenders have issued auction notice for sale of the respective plant and called for bids. The respective companies have filed a petition in the Debt Recovery Tribunal (DRT), Hyderabad seeking stay on the auction proceedings. The matter is pending before DRT. Indiabulls Housing Finance Ltd - a secured Lender for Suryachakra Global Enviro Power Limited (SGEPL) and South Asian Agro Industries Ltd (SAAIL) has initiated alleged criminal proceedings against the Managing Director of the Company and other Directors and Guarantors of SGEPL and SAAIL. These criminal proceedings were challenged by the SGEPL and SAAIL and the matter is pending before Courts. Meanwhile, the Honourable High Court of Adjudicature at Hyderabad vide its order dated June 22, 2015 has ordered that SGEPL and SAAIL be wound up under the provisions of the Companies Act, 1956 and appointed the Official Liquidator attached to the Honourable High Court as Liquidator of SGEPL and SAAIL.
(b) Suryachakra Energy(Chhattisgarh) Private Ltd (SECPL):
SECPL is a 100% subsidiary of the Company and is engaged in setting a coal based power project (with a planned capacity upto 350MW) at Sapos Village, Jangir-Champa District in the State of Chhattisgarh at an estimated project cost of Rs. 1,900 Crores.
SECPL has obtained most of the requisite licenses for setting up the project; signed a Memorandum of Understanding (MOU) with Chhattisgarh State Electricity Board; and entered into an Implementation Agreement with Chhattisgarh State Power Distribution Company Limited, for setting up the said power project.
SECPL upto March 31, 2016, spent an amount of Rs. 45,59,27,070/-towards advances to suppliers of capital equipments and incidental expenses. Management is confident of mobilizing the requisite funds either on its own or through strategic investors to execute the project and recover the investment made in the project. Hence, no provision in the value of investment and advance extended is considered necessary at this stage.
(c) Suryachakra Global Ventures Ltd (SGVL):
SGVL is a wholly owned subsidiary of the Company incorporated in Honkong under Companies Ordinance. The Company through SGVL has decided to acquire a coal mine for captive use by its earstwhile subsidiary companies. With this intention, the Company out of the proceeds of the GDRs issued during the year 2011-12, has advanced an amount of Rs. 85,01,25,542/- (USD 1,90,00,000) to SGVL.
SGVL has entered an into an MOU with Symphony Trading and Investments Limited (STIL) for acquiring interests in coal mines in Indonesia. STIL is having offices in Singapore, Honkong etc., and having experience in identifying and acquiring suitable coal mines for its clients. Pursuant to the said MOU, SGVL on 28th April 2011, has paid USD 1,90,00,000 as advance to STIL for acquiring interests in two coal mines from M/s. Surajaya Indelberg in Indonesia. As per the said MOU, STIL has agreed to return the advance if transaction of coal mine acquisition is not successful within the timelines mutually agreed / extended. Due to change in policies of Indonesia, the transaction could not be completed.
In view of the prevailing uncertain conditions relating to coal mining activities in Indonesia, the Company has called back the advance given to STIL and making efforts to recover the advance. During 2012-13, management had intensified the efforts for recovery; commenced the negotiations and was in the process of initiating legal remedies. Pursuant to the said efforts, the Company could recover an amount of Rs. 14,41,29,264/- (USD 25,90,886) during the year 2013-14 and pursuing the recovery of the balance amount.
Management is confident of recovery of the advance. Shortfall if any, in recovery will be adjusted in the year of final settlement. Hence no provision towards doubtful advances, if any, has been made.
Note: 7 Advances to related parties (Other than to subsidiaries) - Refer Note 12
Unsecured Loans and advances to related parties, considered good, included in Note 12 includes advance to Suryachakra Industries Private Limited Rs. 2,88,79,652/- (Previous year: 3,06,61,484/-) and Suryachakra Thermal (Madhya Pradesh) Private Limited Rs. 3,81,01,314/- (Previous year: 3,81,01,314/-) . The Company in the earlier years had given the advances to acquire land/ to incure preliminary expenses in connection with setting up the power projects. Due to financial difficulties the Company could not make further progress with regard to the respective projects. The land acquired is yet to be registered in the name of the respective companies. The Company had entered into a written agreements with the vendors and the agreements are live. The Company is making efforts to bring in the strategic investors and realise the advances given. Hence, no provision in the doubtful advances is considered at this stage.
Note: 8
Capital Advances :
In the earlier years, the Company has given Capital Advances for enhancing the capacities and increasing the efficiencies of the existing plant and machinery. Net advance as at 31st March 2016 aggregate to Rs. 8,84,28,238/- (Previous year: Rs. 10,36,59,272/-). Due to financial difficulties the Company could not go ahead with the envisaged expansion and modifications. The management is making efforts and expects to recover the balance amount at the earliest. Hence, no provision in the value of advance is considered at this stage Note: 37
Interest on Borrowings
(a) Certain lenders of the Company has initiated legal proceedings against the Company for recovery of their dues. The Company is negotiating with those lenders for settling the dues emicably. The Company stopped providing for the interest and other charges on loans from these lenders. Accordingly, no interest on these loans have been provided in the financial statements for the years ended on 31st March 2014, 31st March 2015 and 31st March 2016. The liability if any will be recognized in the year of settlement of dispute.
(b) During the year ended 31st March 2016 the management based on the discussions it had with the lenders, has written back the interest aggregating to Rs. 13,59,51,879/- recognized prior to financial year 2012-13. The management is of the opinion that there need not be any liability in this regard. Hence, the same has been written back and grouped under Exceptional Item (Refer Note: 25).
Note: 9
Confirmation of Balances
The Company has not received confirmation of balances from Lenders (Secured / Unsecured and Long Term /Short Term), Trade payables, Creditors for Capital goods and Loans & Advances including Capital Advances given by the Company as at March 31, 2016. In the absence of confirmation of balances from these parties, provision for adverse variations, if any, in the carrying amount of these balances are not quantifiable. However, management is confident that the settlement with the said parties will be made at the carrying amounts and no provision is required at present for adverse variations. Adjustments for variances, if any will be made in the year of settlement.
Note: 10
Notices from SBI Global Factors Ltd:
During the period ended 30th June 2012, M/s. SBI Global Factors Limited an unsecured creditor has filed a petition before the Honorable High Court of Andhra Pradesh for winding up of the company u/s 443 (1) (c) of the Companies Act, 1956. The Honorable High Court of Andhra Pradesh, had admitted the petition. State Bank of India, the holding entity of SBI Global Factors Limited and the principle lender of the Company has imp leaded opposing the winding up petition. The Company is confident of resolving the matter amicably.
Note: 11
Employee benefits
The following table sets out the status of the gratuity plan as required under AS 15 (Revised):
Reconciliation of opening and closing balance of the present value of the defined benefit obligation
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.
Note: 12
Segment Reporting
The Companyâs operations predominantly consists of generation and sale of electricity. The coal trading business of the company has been discontinued. Hence there are no reportable segments under the Accounting Standard - 17. The Companyâs business operations are primarily concentrated in India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.
Note: 13
Related party transactions
(a) The related parties where control exists are subsidiaries and step down subsidiaries. There are no other parties over which the company has control.
(b) Related parties where control exists and with whom transactions have taken place during the year are as follows:
(i) Subsidiary
- Suryachakra Global Enviro Power Limited
- Suryachakra Energy (Chhattisgarh) Private Limited (from March 05, 2011)
- Suryachakra Global Ventures Limited
(ii) Key Management Personnel (KMP) represented on the Board of Directors
- Dr. S. M. Manepalli, Managing Director
- Mr. K Vijay Kumar, Executive Director
(iii) Enterprises over which Key Managerial Personnel or their relatives have significant influence (Significant interest entities)
- Suryachakra Industries Private Limited
- Suryachakra Thermal (Madhya Pradesh) Private Limited
(iv) Non-Executive on the Board of Directors
Dr. R. S. Murthy Mr. P.V.Subba rao Mr. V.S.Murthy Mrs. M.Mangatayaru Mr. B.P.Vijay Rao Mr. V.Subrahmanyam
Note: 14 Deferred taxes
The Company had started claiming deduction under Section 80-IA of the Income Tax Act, 1961 from the year ended 31,March 2011. Based on the assessment of the deferred tax as on March 31,2016, the timing differences arising in the current year will reverse within the tax holiday period. Accordingly, no deferred tax has been recognized in the books of accounts of the Company as on March 31,2016
Note: 15
Previous year figures
Previous figures have been recanted/ restated to conform to the current classification
Mar 31, 2015
Note 1: Corporate Information
Suryachakra Power Corporation Limited ("the Company") was
incorporated on 28 February 1995, as a Public Limited Company. The
Company was converted into a Private Limited Company with effect from 9
August 2000. Pursuant to this, the name of the Company was changed to
"Suryachakra Power Corporation Private Limited". The Company was
re- converted into a public limited company with effect from 8
September 2005. Pursuant to this, the name of the Company was changed
to Suryachakra Power Corporation Limited.
The Company is engaged in the generation and sale of electricity. The
commercial operation started with effect from 1 April 2003. The Company
is listed in Bombay Stock Exchange since 23 July 2007. The Company is
also engaged in business of trading of coal from the year 31 March
2009.
1.2 Rights, pereferences and restrictions attached to equity shares
The Company has only one class of shares referred to as equity shares
having a par value of Rs. 10/- per share. Each holder of equity shares
is entitled to one vote per share. In the event of liquidation of the
company, the holders of equity shares will be entitled to receive
surplus from sale of assets after setting off of the liabilities. The
distribution will be in proportion to the number of equity shares held
by the shareholders.
2.1 Nature of Security for term loans
A. Working Capital Term loans from State Bank of India (SBI) is secured
by:
(i) First charge on the entire fixed assets of company, present and
future on pari passu basis with other term lender, SREI Equipment
Finance Private Limited
(ii) Registred mortgage of leasehold rights of land meausring 4.12 Ha.
Bearing Survey Nos. 462, 467,636, 635/2, 625/1, 634/1, 635/3 and 635/4
situated at Bambooflat, Ferragunj Tehsil, Andaman, A & N Island,
including assignment of Power Purchase Agreement, EPC contract and O&M
contract, insurance policy and other project documents.
(iii) Collateral security by way of :
(a) Pledge of 84,37,388 shares of Suryachakra Power Corporation Limited
(Face value of Rs.10)
(b) Vacant urban residential plot no.74 admeasuring 350 sq.yards,
Survey Nos.300P, 302, 309P, in the name of Shri M. Seshavatharam and
situated in Krishnaja Hills, Village : Bachupally, Mandal :
Quthubullapur, District : Ranga Reddy, Andhra Pradesh.
(c) Open vacant plots of land in the name of Shri M. Naveen Babu
admeasuring -1.47 acres RS No.368; 0.97 acre RS No.09;0.38 acre RS
No.11. All three at village. Thorreddu, Rajahmundry Rural Mandal,
District East Godavari, Andhra Pradesh. 3.02 acres Rs No. 246/1,village
: Madhurapudi, Korukondala Mandal, District East Godavari, Andhra
Pradesh.
(d) 6 Nos. vacant residential plots in the name of Shri M. Naveen Babu
in Western Block No.6-95, 6-95/1, 6-97, 6-97/1 , 6-97/3 and 6-96
admeasuring 2082.88 sq. yards situated in RS 124/4, at village:
Thorreddu, Rajahmundry Rural Mandal, District East Godavari, Andhra
Pradesh.
(iv) Personal Guarantee of Dr. S.M. Manepalli, Managing Director, Shri
M. Seshavatharam and Smt T. Sreelatha relatives of Director and Shri M.
Naveen Babu,
B. Term loan from SREI Equipment Finance Private Limited is secured by
:
(i) First charge on all movable and immovable assets, present and
future of the company in favour of SREI on a pari-passu basis with SBI.
(ii) Assignment in favour of SREI, SBI on a pari-passu basis, of all
rights titles and interests of the company in, to and under all assets
of the project and all project documents, insurance policies,
permits/approval etc, to which the company is a party and all other
contracts relating to project.
(iii) Pari-passu first charges on company's all the accounts
including but not limited to Trust and Retention Account and the
Debt-Service Letter of Credit / Reserve Account.
(iv) The Equity Shares held by promoters in the project company
(minimum 51%) shall be pledged to SREI and SBI on a pari-passu basis.
(v) Non-disposal undertaking by Caterpillar and BSES for not disposing
off their respective equity shares of SPCL during the currency of the
credit facilities sanctioned to SPCL without the written consent of
SREI and SBI.
2.2 Terms of repayment of secrued term loans
(i) Working capital term loan from State Bank of India (Kolkata)
carries an interest of12.75% per annum and is repayable in thirty three
monthly unequal installments.
(ii) Term loan form SREI Equipment Finance Private Limited carries an
interest of 19.5% per annum. The loan outstanding as on the date of the
balance sheet has fallen due for repayment.
3.1 Nature of Security for Cash Credit
Cash Credits from State Bank of India is secured by:
(i) Exclusive first charge on the entire current assets of the company
both present and future
(ii) Assignment of LC from Andaman and Nicobar Administration
(iii) Collateral security on second charge on all fixed assets of the
company
Note: 4 Year ended Year ended
Operation and maintenance expenses March 31, 2015 March31,2014
(Amount) (Amount)
Note: 5
Contingent Liabilities and commitments
(to the extent provided for)
(i) Contingent liabilities
(a) Claims against the company not
acknowledged as debt - Liquidated
damages for delay in commencement of
commercial operations 31,570,000 31,570,000
(b) Corporate guarantee given to Bunge
Emissions Fund Limited against the loan
provided to Suryachakra Global Enviro
Power Limited, 70,908,000 70,908,000
a subsidiary of the company
(ii) Commitments
(a) Estimated amount of contracts
remaining to be executed on capital
account not provide for (net of advances) - -
Note: 6
Disclosures under Section 22 of Micro, Small and Medium Enterprises
Development Act, 2006.
The Ministry of Micro, Small and Medium Enterprises has issued an
office Memorandum dated August 26, 2008 which recommends that the Micro
and Small Enterprises should mention in their correspondence with its
customers the Enterpreneurs Memorandum Number as allotted after filing
of the Memorandum. However, the Company has not received any intimation
from suppliers regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006 and hence disclosures,if any,
relating to amounts unpaid as at year end together with interest paid /
payable as required under the said Act, have not been given. Further in
the view of the management, the impact of interest, if any, that may be
payable in accordance with the provisions of the Micro, Small and
Medium Enterprises Development Act, 2006 is not expected to be
material. The Company has not received any claim for interest from any
supplier under the said Act. Note :29
Disclosure as per Clause 32 of the Listing Agreements with the Stock
Exchanges
Note :
(a) Loans and Advances shown above, fall under the category of "Long
Term Loans & Advances' in nature of Loans. No repayment schedule has
been specified in respect of these loans.
(b) All the above loans and advances are interest free
(c) * Secured by a second charge by way of hypothecation of the fixed
assets of the lonee situated at Madwa Village, Tehsil: Janjgir, champa,
District : Janjgir, Champa - Chattisgarh.
Note : 7
Revenue from A & N Administration
(i) The Company's revenue from sale of electricity is based on the
Power Purchase agreement (PPA) entered into with the Andaman and
Nicobar (A & N) Administration. The PPA is for a initial period of 15
years and can be extended on mutual terms and conditions for three
further periods of five (5) years each and contains a set of
pre-defined formulae for calculation of the revenue to be billed on a
monthly basis. Such billings as per terms of the PPA include a fixed
charge payment, a variable charge payment, incentive payment, foreign
exchange adjustment and change-in- law adjustment.
(ii) The Company, for the purpose of determining the fixed charge
monthly billings, invoices the A & N Administration based on the
capital cost as envisaged in the PPA. Pending final confirmation of
actual capital expenditure, no adjustment is made to the revenue. Such
adjustments, if any, will be made in the period in which the amount
becomes determinable and is confirmed by the A & N Administration.
(iii) Revenues for the year ended March 31,2015 include an amount of
Rs.49,344,300 (Previous year: Rs.5,32,99,282) billed by the company as
charges under the PPA, which has been rejected / withheld by the A & N
Administration on the grounds of the technical interpretation of the
formulae for computation of such charges. Aggregate receivables as at
March 31, 2015 on account of such rejections / withheld amounts to Rs.
23,05,07,685 as at March 31, 2015 (Previous year: Rs. 18,11,63,385).
Further as at 31st March 2015 the Company also has to receive an amount
of Rs.12,75,74,329 from A & N Administration towards interest on the
above stated rejections / withheld amounts which have been recognized
in earlier years. Management is pursuing the matter with A & N
Administration and is confident of recovering the amount. The amount so
far recognized in the books of accounts upto 31.03.2015, is a part of
claim preferred on A & N Administration.
* Investment in equity shares is net of provision for diminution in
value Rs. 668,337,722/- (31.03.2014: Nil). Loans and advances are net
of provision for doubtful advances Rs. 38,31,28,691/- (31.03.2014 : Rs.
139,098,212 )
Status of the subsidiaries is as follows:
(a) Suryachakra Global Enviro Power Limited (SGEPL):
SGEPL along with its subsidiaries is engaged in generation and sale of
power. SGEPL and its subsidiaries have incurred substantial losses and
the net worth of these companies has been fully eroded. In view of high
input cost, operations of these companies were suspended from the
financial year 2011-12 onwards. Secured loan lenders have issued
notices under section 13(2) of the Securitization and Reconstruction of
Financial Assets and Enforcement of Security Interest Act 2002(SARFAESI
Act) and Winding up Petitions Under Section 433 and 434 of Companies
Act 1956. Except one Power Plant owned by M/s.Sri Panchajanya Power
Private Limited at Hingoli, Maharashtra all other three plants and one
Plant in project stage were taken over by the respective secured loan
lenders. The lenders have issued auction notice for sale of the plant
and called for bids. The Company has filed a petition in the Debt
Recovery Tribunal (DRT), Hyderabad seeking stay on the auction
proceedings. The matter is pending before DRT. Indiabulls Housing
Finance Limited - a secured Lender for SGEPL and South Asian Agro
Industries Ltd has initiated alleged criminal proceedings against the
Managing Director of the Company and other Directors and Guarantors.
These criminal proceedings were challenged by the company and the
matter is pending before Courts. The management's effort to resume
operations of these plants did not materialize. Management is
considering various options available to it including the disposal of
these plants to a stratagic investor. The Management is of the opinion
that there would be impairment in recovery of carrying value
investments and recovery of advances given. Hence, as a measure of
prudence, the company has made a provision of Rs.66,83,37,722 (being
75% of the carrying value of investments) towards dimunition in the
value of investments and Rs.24,40,30,479 towards provision for doubtful
advances.
(b) Suryachakra Energy (Chhattisgarh) Private Limited (SECPL) :
SECPL is a 100% subsidiary of the company engaged in setting upto a
350MW coal based power project at Sapos Village, Jangir-Champa District
in the State of Chhattisgarh at an estimated project cost of Rs.
19,00,00,00,000.SECPL has obtained most of the requisite licenses for
setting up the project; signed a Memorandum of Understanding (MOU) with
Chhattisgarh State Electricity Board; and entered into an
Implementation Agreement with Chhattisgarh State Power Distribution
Company Limited, for setting up the said power project.Up to 31st
March, 2015, SECPL has spent an amount of Rs. 45,59,27,070 towards
advances to suppliers of capital equipments and incidental expenses.
Management is confident of mobilizing the requisite funds to execute
the project and recover the investment made in the project. Hence, no
provision in the value of investment and advance extended is considered
necessary at this stage.
(c) Suryachakra Global Ventures Limited (SGVL):
SGVL is a wholly owned subsidiary of the company incorporated in
Honking under Companies Ordinance. The Company through SGVL has decided
to acquire a coal mine for captive use by it's subsidiaries. Out of
the proceeds of the GDRs issued during the year 2011-12, the Company
has advanced an amount of Rs. 85,01,25,542/ - (USD 1,90,00,000) to
SGVL.
SGVL has entered an into an MOU with Symphony Trading and Investments
Limited(STIL) for acquiring interests in coal mines in Indonesia. STIL
is having offices in Singapore, Honking etc., and having experience in
identifying and acquiring suitable coal mines for its clients.
Pursuant to the said MOU, SGVL on 28th April'2011, has paid USD
1,90,00,000 as advance to STIL for acquiring interests in two coal
mines from M/s. Surajaya Indelberg in Indonesia. As per MOU, STIL has
agreed to return the advance, if transaction of coal mine acquisition
is not successful within the timelines mutually agreed / extended. Due
to change in policies of Indonesia, the transaction could not be
completed.
In view of the prevailing uncertain conditions relating to coal mining
activities in Indonesia, the company has called back the advance given
to STIL and making efforts to recover the advance. During the 2012 -13,
management has intensified the efforts for recovery; commenced the
negotiations and was in the process of initiating legal remedies.
Pursuant to the said efforts, the Company could recover an amount of
Rs. 14,41,29,264/- (USD 25,90,886) during the year 2013-14 and pursuing
for recovery of the balance amount.
Management is confident of recovery of the advance. Shortfall if any,
in recovery will be adjusted in the year of final settlement. Hence no
provision towards doubtful advances, if any, has been made.
Note: 35
Advance to related parties -Suryachakra Thermal Energy (Andhra) Private
Limited Rs.3,06,61,484 and Suryachakra Thermal (Madhya Pradesh) Private
Limited Rs.3,81,01,314.
The company in earlier year had given the above advances to acquire
land / to incurre preliminary expenses in connection with seting up the
power projects. Due to financials difficulties the company could not
make further progress with regard to these projects. The land acquired
is yet to be registered in the name of the Company. Company had entered
into a formal agreements with the vendors and the agreements are live.
Company is making efforts to bring in the investors and realise the
advance given. Hence, no provision for doubutful advances is considered
at this stage.
Note: 8
Capital Advances
In the earlier years, the Company has given Capital Advances for
enhancing the capacities and increasing the efficiencies of the
existing plant and machinery. Net advances given as at 31st March 2015
aggregate to Rs.10,36,59,272. Due to financial difficulities, the
company could not go ahead with the envisaged expansion and
modifications. Management is making efforts and expects to recover the
balance amount at the earliest. Hence, no provision in the value of
advance is considered necessary at this stage.
Note: 9
Interest on Borrowings
Certain lenders of the Company have initiated legal proceedings against
the company for recovery of their dues. Company is negotiating with
the lenders for settling the dues amicably. The company has stopped
providing for the interest and other charges on loans from these
lenders. Accordingly no interest on these loans have been provided in
the financial statements for the year ended 31st March, 2015. The
liability if any will be recognized in the year of settlement of
dispute.
Note: 10
Notices from SBI Global Factors Ltd:
During the earlier years M/s. SBI Global Factors Limited an unsecured
creditor has filed a petition before the Honourable High Court of
Andhra Pradesh for winding up of the company u/s 443 (1) (c) of the
Companies Act, 1956. The Honourable High Court of Andhra Pradesh, had
admitted the petition. SBI the holding entity of SBI Global Factors Ltd
and the Principal Lender of the company has impleaded opposing the
winding up petition. The company is confident of resolving the matter
amicably.
Note: 11
Confirmation of Balances
The Company has not received confirmation of balances from Lenders,
Trade payables, Suppliers for capital goods, Loans & Advances including
capital advances given by the company as at 31st March 2015. In the
absence of confirmation of balances from these parties, provision for
adverse variations, if any, in the carrying amounts of these balances
are not quantifiable. However, management is confident that the
settlement with the said parties will be made at the carrying amounts
and no provision is required at present for adverse variations.
Adjustment for shortfall / excess payment, if any, will be made in the
year of settlement.
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.
Note: 12
Segment Reporting
The Company's operations predominantly consists of generation and
sale of electricity. Hence there are no reportable segments under the
Accounting Standard - 17. The Company's business operations are
primarily concentrated in India. The conditions prevailing in India
being uniform, no separate geographical disclosures are considered
necessary.
Note: 13
Related party transactions
(a) The related parties where control exists are subsidiaries and step
down subsidiaries. There are no other parties over which the company
has control.
(b) Related parties where control exists and with whom transactions
have taken place during the year are as follows:
(i) Subsidiaries
- Suryachakra Global Enviro Power Limited -
- Suryachakra Energy (Chhattisgarh) Private Limited ( From March'
05,2011)
- Suryachakra Global Ventures Limited
(ii) Step down subsidiaries
- South Asian Agro Industries Limited
- MSM Energy Limited
- Sri Panchajanya Power Private Limited
(iii) Key Managerial Personnel (KMP) represented on the Board of
Directors
- Dr. S. M. Manepalli, Managing Director
- Mr. K Vijay Kumar, Executive Director
- Mrs. B.N.Raja Kumari
- Mr. V. L. Narasimha Rao, Chief Financial Officer
- Mr. P. Satish Chandramouli, Company Secretary
(iv) Enterprises over which Key Managerial Personnel or their relatives
have significant influence (Significant interest entities)
- Suryachakra Thermal Energy (Andhra) Private Limited
- Suryachakra Thermal (Madhya Pradesh) Private Limited
- Suryachakra Power venture Private Limited
(v) Non-Executive on the Board of Directors
- Mr. V. S. Murthy
Note: 14 Deferred taxes
The Company had started claiming deduction under Section 80-IA of the
Income Tax Act, 1961 from the year ended 31,March 2011. Based on the
assessment of the deferred tax as on March 31, 2015, the timing
differences arising in the current year will reverse within the tax
holiday period. Accordingly, no deferred tax has been recognised in the
books of accounts of the Company as on March 31,2015
Note: 15
Previous year figures
Previous figures have been recasted/ restated to conform to the current
classification
Mar 31, 2014
Note 1: Corporate Information
Suryachakra Power Corporation Limited ("the Company") was
incorporated on 28 February 1995, as a Public Limited Company. The
Company was converted into a Private Limited Company with effect from 9
August 2000. Pursuant to this, the name of the Company was changed to
"Suryachakra Power Corporation Private Limited". The Company was
re- converted into a public limited company with effect from 8
September 2005. Pursuant to this, the name of the Company was changed
to Suryachakra Power Corporation Limited.
The Company is engaged in the generation and sale of electricity. The
commercial operation started with effect from 1 April 2003. The Company
is listed in Bombay Stock Exchange since 23 July 2007. The Company is
also engaged in business of trading of coal from the year 31 March
2009.
1.2 Rights, pereferences and restrictions attached to equity shares
The Company has only one class of shares referred to as equity shares
having a par value of Rs. 10/- per share. Each holder of equity shares
is entitled to one vote per share. In the event of liquidation of the
company, the holders of equity shares will be entitled to receive
surplus from sale of assets after setting off of the liabilities. The
distribution will be in proportion to the number of equity shares held
by the shareholders.
2.1 Nature of Security for term loans
A. Working Capital Term loans from State Bank of India (SBI) is secured
by:
(i) First charge on the entire fixed assets of company, present and
future on pari passu basis with other term lender, Srei Equipment
Finance Private Limited
(ii) Registred mortgage of lease hold rights of land meausring 4.12 Ha.
Bearing Survey Nos. 462, 467,636, 635/2, 625/1, 634/1, 635/3 and 635/4
situated at Bambooflat, Ferragunj Tehsil, Andaman, A & N island,
including assignment of Power Purchase Agreement, EPC contract and O&M
contract, insurance policy and other project documents.
(iii) Collateral security by way of :
(a) Pledge of 84,37,388 shares of Suryachakra Power Corporation Limited
(Face value of Rs.10)
(b) Vacant urban residential plot no.74 admeasuring 350 sq.yards,
Survey Nos.300P, 302, 309P, in the name of Shri M. Seshavatharam and
situated in Krishnaja Hills, Village : Bachupally, Mandal :
Quthbullapur, District : Ranga Reddy, Andhra Pradesh.
(c) Open vacant plots of land in the name of Shri M. Naveen Babu
admeasuring -1.47 acres RS No.368; 0.97 acre RS No.09;0.38 acre RS
No.11. All three at village. Thorredu, Rajahmundry Rural Mandal,
District East Godavari, Andhra Pradesh. 3.02 acres Rs No. 246/1,village
: Madhurapudi, Korukondala Mandal, District East Godavari, Andhra
Pradesh.
(d) 6 Nos. vacant residential plots in the name of Shri M. Naveen Babu
in Western Block No.6-95, 6-95/1, 6-97, 6-97/1,6-97/3 and 6-96
admeasuring 2082.88 sq. yards situated in RS 124/4, at village:
Thorredu, Rajahmundry Rural Mandal, District East Godavari, Andhra
Pradesh.
(iv) Personal Guarantee of Dr. S.M. Manepalli, Managing Director, Shri
M. Seshavatharam and Smt T. Sreelatha relatives of Director and Shri M.
Naveen Babu,
(v) Corporate guarantee by Mauktika Energy Private Limited and
Manepalli Investments Private Limited
B. Term loans from SREI Equipment Finance Private Limited is secured by
:
(i) First charge on all movable and immovable assets, present and
future of the company in favour of SREI on a pari- passu basis with
SBI.
(ii) Assignment in favour of SREI, SBI on a pari-passu basis, of all
rights titles and interests of the company in, to and under all assets
of the project and all projects documents, insurance policies, permit
approval etc, to which the company is a party and all other contracts
relating to project.
(iii) Pari-passu first charges on company''s all the accounts
including but not limited to Trust and Reterntion Account and the
Debt-Service Letter of Credit / Reserve Account.
(iv) The Equity Shares held by promoters in the project company
(minimum 51%) shall be pledged to SREI and SBI on a pari-passu basis.
(v) Non-disposal undertaking by Caterpillar and BSES for not disposing
off their respective equity shares of SPCL. during the currency of the
credit facilities sanctioned to SPCL without the written consent of
SREI and SBI.
2.2 Terms of repayment of secrued term loans
(i) Working capital term loan from State Bank of India (Kolkata)
carries an interest of 12.75% per annum and is repayable in sixty nine
monthly unequal installments. First sixty months @ Rs.35,40,000 each
and next eight months @ Rs. 39,30,000 each and the last installment @
Rs. 39,60,000.
(ii) Term loan form SREI Equipment Finance Private Limited carries an
interest of 19.5% per annum. The loan outstanding as on the date of the
balance sheet has fallen due for repayment.
3.1 Nature of Security for Cash Credit
Cash Credits from State Bank of India is secured by:
(i) Exclusive first charge on the entire current assets of the company
both present and future
(ii) Assignment of LC from Andaman and Nicobar Administration
(iii) Collateral security on second charge on all fixed assets of the
company
Note: 2 Year ended Year ended
Operation and maintenance expenses March 31, 2014 March 31,2013
(12 Months) (9 Months)
Note: 3
Contigent Liabilities and commitments
(to the extent provided for)
(i) Contigent liabilities
(a) Letter of credit outstanding - -
(b) Claims against the company not
acknowledge as debt - Liquidated
damages for delay in coommencement of
commercial operations 31,570,000 31,570,000
(c) Corporate guarantee given to Bunge
Emissions Fund Limited against the
loan provided to Suryachakra Global
Enviro Power Limited, 70,908,000 70,908,000
a subsidiary of the company
(ii) Commitments
(a) Estimated amount of contracts
remaining to be executed on capital
account not provide for (net of advances) - -
Note: 4
Disclosures under Section 22 of Micro, Small and Medium Enterprises
Development Act, 2006
The Ministry of Micro, Small amd Medium Enterprises has issued an
office Memorandum dated August 26, 2008 which recommends that the Micro
and Small Enterprises should mention in their correspondence with its
customers the Enterpreneurs Memorandum Number as allotted after filing
of the Memorandum. However, the Company has not received any intimation
from suppliers regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006 and hence disclosures, if any,
relating to amounts unpaid as at year end together with interest paid /
Payable as required under the said Act, have not been given. Further in
view of the managment, the impact of interest if any, that may be
payable in accordance with the provisions of the Micro, Small and
Medium Enterprises Development Act, 2006 is not expected to be
material. The Company has not received any claim for interest from any
supplier under the said Act.
Note : 5
Revenue from A & N Administration
(i) The Company''s revenue from sale of electricity is based on the
Power Purchase Agreement (PPA) entered into with the Andaman and
Nicobar (A & N) Administration. The PPA is for a period of 15 years and
contains a set of pre-defined formulae for calculation of the revenue
to be billed on a monthly basis. Such billings as per terms of the PPA
include a fixed charge payment, a variable charge payment, incentive
payment, foreign exchange adjustment and change-in-law adjustment.
(ii) The Company, for the purpose of determining the fixed charge
monthly billings, invoices the A & N Administration based on the
capital cost as envisaged in the PPA. Pending final confirmation of
actual capital expenditure, no adjustment is made to the revenue. Such
adjustments, if any will be made in the period in which the amount
becomes determinable and is confirmed by the A & N Administration.
(iii) Revenues for the year ended March 31, 2014 include an amount of
Rs.5,32,99,282 (Previous year : Rs. 5,25,87,325 (9 months)) billed by
the company as variable charge payment under the PPA, which has been
rejected / withheld by the A & N Administration on the grounds of the
technical interpretation of the formulae for computation of such
charges. Aggregate receivables as at March 31,2014 on such withheld
amounts works out to Rs.18,11,63,385 as at March 31,2014 (Previous
year: Rs. 12,64,33,026) on account of such rejections/withheld.
Further, during earlier years, the Company has accrued interest on such
upaid invoices. Interest accrued on such diagreements and included in
the total receivables as at March31, 2014 amounts to Rs. 127,574,329
(Previous year : Rs. 127,574,329).
Note: 6
Investment in subsidiaries and Advances to Subsidiaries
The company as at March 31, 2014 is having the following investments
(including advances) in its subsidiaries:
Status of the subsidiaries is as follows:
(a) Suryachakra Global Enviro Power Limited (SGEPL):
SGEPL along with its subsidiaries (wholly owned) is engaged in
generation and sale of power. SGEPL and its subsidiaries have incurred
substantial losses and the net worth of the respective companies has
been fully eroded. In view of high input cot, operations in the power
plants of these companies were suspended sice the financial year
2011-12. Secured loan lenders have issued notices under section 13(2)
of the The Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act 2002 (SARFAESI Act) / Windingup
Petitions Under Section 443 and 434 of Companies Act 1956. Except one
Power Plant owned by M/s. Sri Panchajanya Power Private Ltd at Hingoli,
Maharastra all other Three plants and one Plant in project stage were
taken over by the respective lenders. Indiabulls Housing Finance Ltd-
Secured Lender for SGEPL and South Asian Agro Industries Ltd has
initiated criminal proceedingsagainst the Managing Director of the
Company and other Directors and guarantees. During March''12 the
electricity distribution companies of respective power plants have
increased the tariff for the power generated and exported. In view of
such upward revision in the tariff, the management is of the view that
these power plants are economically viable once settlements have taken
place with the respective secured lenders. Management is makeing
efforts to resolve the liquidity curnch; resolve issues with the
lenders and commence the operations at the earliest. Management is also
of the opinion that there would not be any impairment and all the
plants would realize more than the carrying value of the assets as at
the reporting period.
Hence, the current diminution in the value of these investment is
considered to be of temporary in nature and hence no provision for
diminution is considered necessary at present. However as a measure of
prudence, the company, during 2011-12, has made a provision of Rs.
13,90,98,212/- towards advances given to the subsidiaries as doubtful.
(b) Suryachakra Energy (Chhattisgarh) Private Limited (SECPL) :
SECPL is a 100% subsidiary of the Company and is engaged in setting
upto a 350MW coal based power project at Sapos Village, Jangir-Champa
District in the State of Chhattisgarh at an estimated project cost of
Rs. 1900,00,00,000..
SECPL has obtained most of the requisite licenses for setting up the
project; signed Memorandum of Understanding (MOU) with Chhattisgarh
State Electricity Board; and entered into an Implementation Agreement
with Chhattisgarh State Power Distribution Company Limited, for setting
up the said power project.
SECPL upto March 31, 2014 spent an amount of Rs. 45,59,00,000 towards
advances to suppliers of captial equipments and incidental expenses.
Management is confident of mobilizing the requisite funds to execute
the project and recover the investment made in the project. Hence, no
provision in the value of investment is considered necessary at this
stage.
(c) Suryachakra Global Ventures Limited (SGVL):
SGVL is a wholly owned subsidiary of the company incorporated in
Hongking under Companies ordinance. The Company through SGVL has
decided to acquire coal mine for captive use by other subsidiaries. In
the process, the company, out of the proceeds of the GDRs issued during
the year, has advanced an amount of Rs. 85,01,25,542/- (USD
1,90,00,000) to SGVL.
SGVL has entered an into an MOU with Symphony Trading and Investments
Limited (STIL) for acquiring interests in coal mines in Indonesia. STIL
is having offices in Singapore, HongKong etc., and having experience in
identifying and acquiring suitable coal mines for its clients.
SGVL has entered an into an MOU with Symphony Trading and Investments
Limited(STIL) for acquiring interests in coal mines in Indonesia. STIL
is having offices in Singapore, Honking etc., and having experience in
identifying and acquiring suitable coal mines for its clients.
Pursuant to the said MOU, SGVL on 28th April'' 2011, has paid USD
1,90,00,000 as advance to STIL for acquiring interests in two coal
mines from M/s. Surajaya Indelberg in Indonesia. As per MOU, STIL has
agreed to return the advance, if transaction of coal mine acquisition
is not successful with in the timelines mutually agreed / extended. Due
to change in policies of Indonesia, the transaction could not be
completed.
In view of the prevailing uncertain conditions relating to coal mining
activities in Indonesia, the company has called back the advance given
to STIL and making efforts to recover the advance. During the 2012 -
13, management has intensified the efforts for recovery; commenced the
negotiations and in the process of initiating legal remedies also for
recovering the dues and recovered an amount of Rs. 14,41,29,264/- (USD
25,90,886) during current year and pursuing the issue for recovery of
the balance amount.
Management is confident of recovery of the advance. Short fall if any,
in recovery will be adjusted in the year of final settlement. Hence no
provision towards doubtful advances, if any, has been made.
Note: 7
Notices from SBI Global Factors Limited:
During the period ended 30th June 2012, M/s. SBI Global Factors Limited
an unsecured creditor has filed a petition before the Honourable High
Court of Andhra Pradesh for winding up of the company u/s 443 (1) (c)
of the Companies Act, 1956. The Honourable High Court of Andhra
Pradesh, had admitted the petition. Company has appealed against the
said petition which is pending for hearing. Company is confident of
resolving the matter amicably.
Note: 8
Interest on Borrowings
Since the certain lenders have filed various cases on the company with
regard to recovery of their dues, the company stopped recognizing
liability towards various finance charges on loans from such lenders
Hence no finance charges have been provided in the financial statements
for the year ended Mar 31, 2014. The liability if any will be
recognized in the year of settlement of the dispute.
Note: 9
Confirmation of Balances
The management has not obtained confirmation of balances from Secured
Loan Lenders, Trade payables, Creditors for Capital goods and Loans &
Advances given by the company as at March 31, 2014. In the absence of
confirmation of balances from these parties, provision if any to be
made for any adverse variations in the carrying amounts are not
quantified. However, management is confident that the settlement with
the said parties will be made at the carrying amounts and no provision
is required at present for adverse variations. Adjustments, if any
will be made on settlement.
Note: 10
Employee benefits
The following table sets out the status of the gratuity plan as
required under AS 15 (Revised):
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.
Note: 11
Segment Reporting
The Company''s operations predominantly consists of generation and
sale of electricity. The coal trading business of the company has been
discontinued.Hence there are no reportable segments under the
Accounting Standard - 17. The Company''s business operations are
primarily concentrated in India. The conditions prevailing in India
being uniform, no separate geographical disclosures are considered
necessary.
Note: 12
Related party transactions
(a) The related parties where control exists are subsidiaries and step
down subsidiaries. There are no other parties over which the company
has control.
(b) Related parties where control exists.
(i) Subsidiary
- Suryachakra Global Enviro Power Limited -
- Suryachakra Energy (Chhattisgarh) Private Limited
- Suryachakra Global Ventures Limited
(ii) Step down subsidiaries
- South Asian Agro Industries Limited
- MSM Energy Limited
- Sri Panchajanya Power Private Limited
(iii) Key Managerial Personnel (KMP) represented on the Board of
Directors
- Dr. S. M. Manepalli, Managing Director
- Mr. K Vijay Kumar, Executive Director
- Mrs. B.N.Raja Kumari
(iv) Enterprises over which Key Managerial Personnel or their relatives
have significant influence (Significant interest entities)
- Suryachakra Thermal Energy (Andhra) Private Limited
- Suryachakra Thermal (Madhya Pradesh) Private Limited
- Suryachakra Power venture Private Limited
(v) Non-Executive on the Board of Directors
- Mr. P. K.. Bhattarcharjee
- Mr. Mahesh Chand
- Mr. V. S. Murthy
- Mr. M. Seshavatharam (son of Managing Director)
- Mr. A Ramesh Kumar
Note: 13 Deferred taxes
The Company had started claiming deduction under Section 80-IA of the
Income Tax Act, 1961 from the year ended 31, March, 2011. Based on the
assessment of the deferred tax as on March 31, 2014, the timing
differences arising in the current year will reverse within the tax
holiday period. Accordingly, no deferred tax has been recognised in the
books of accounts of the Company as on March 31, 2014.
Note : 14
The current year figures are for 12 months as compared to 9 months in
the previous year, hence the figure are not comparable
Note : 15
Previous year figures have been regrouped / reclassified wherever
necessary to the current years'' classification / disclosures.
Mar 31, 2013
Note 1: Corporate Information
Suryachakra Power Corporation Limited ("the Company") was incorporated
on 28 February 1995, as a Public Limited Company. The Company was
converted into a Private Limited Company with effect from 9 August
2000. Pursuant to this, the name of the Company was changed to
"Suryachakra Power Corporation Private Limited". The Company was re-
converted into a public limited company with effect from 8 September
2005. Pursuant to this, the name of the Company was changed to
Suryachakra Power Corporation Limited.
The Company is engaged in the generation and sale of electricity. The
commercial operation started with effect from 1 April 2003. The Company
is listed in Bombay Stock Exchange since 23 July 2007. The Company is
also engaged in business of trading of coal from the year 31 March
2009.
Note: 2
Contingent liabilities and commitments (to the extent not provided
for)
As at As at
March 31, 2013 June 30, 2012
(i) Contingent liabilities
(a) Claims against the company not
acknowledged as debt - Liquidated 31,570,000 31,570,000
damages for delay in commencement
of commercial operation
(b) Corporate guarantee given to
Bunge Emissions Fund Limited
against the loan provided 70,908,000 70,908,000
to Suryachakra Global Enviro
Power Limited, a subsidiary of
the company.
(ii) Commitments
(a) Estimated amount of contracts
remaining to be executed on - -
capital account not provided for
(net of advances)
Note: 3
Disclosures under Section 22 of Micro, Small and Medium Enterprises
Development Act, 2006
The Ministry of Micro, Small amd Medium Enterprises has issued an
office Memorandum dated August 26, 2008 which recommends that the Micro
and Small Enterprises should mention in their correspondence with its
customers the Enterpreneurs Memorandum Number as allotted after filing
of the Memorandum. However, during the year, the Com- pany has not
received any intimation from suppliers regarding their status under the
Micro, Small and Medium Enter- prises Development Act,2006 and hence
desclosures, if any, relating to amounts unpaid as at year end together
with interest paid / Payable as required under the said Act, have not
been given. Further in view of the managment, the impact of interest
paid / payable in accordance with the provisions of the Micro, Small
and Medium Enterprises Development Act, 2006 is not expected to be
mateial. The Company has not received any claims for interest from any
supplier under the said Act.
Note : 4
Revenue from A & N Administration
(i) The Company''s revenue from sale of electricity is based on the
Power Purchase Agreement (PPA) entered into with the Andaman and
Nicobar (A & N) Administration. The PPA is for a period of 15 years and
contains a set of pre-defined formulae for calculation of the revenue
to be billed on a monthly basis. Such billings as per terms of the PPA
include a fixed charge payment, a variable charge payment, incentive
payment, foreign exchange adjustment and change-in-law adjustment.
(ii) The Company, for the purpose of determining the fixed charge
monthly billings, invoices the A & N Administration based on the
capital cost as envisaged in the PPA. Pending final confirmation of
actual capital expenditure, no adjustment is made to the revenue. Such
adjustments, if any will be made in the period in which the amount
becomes determinable and is confirmed by the A & N Administration.
(iii) Revenues for the year ended March 31, 2013 include an amount of
Rs.5,25,87,325 ( year ended 30.06.2012: Rs.10,13,89,890) billed by the
company as variable charge payment under the PPA, which has been
rejected / withheld by the A & N Administration on the grounds of the
technical interpretation of the formulae for computation of such
charges. The total receivables on account of such rejections / withheld
including interest thereon as at March 31, 2013 amounted to
Rs.25,40,07,355/- (as at 30.06.2012 : Rs.30,52,52,497). Total interest
accrued on such rejections / withheld and included in the total
receivables as at March 31, 2013 amounts to Rs. 12,75,74,329
(30.06.2012: Rs. 12,75,74,329).
The Company believes that the amounts billed including interest thereon
are recoverable based on the interpretation that can be inferred from
the formulae contained in the PPA.
Note: 5
Trade Receivables
Trade receivables include an amount of Rs.8,36,43,243/- relating to
discontinued coal trading activity. Management is continuously and
regulatrly pursuing with the respective debtors and is confident of
recovering the balance amount. However, as a measure of prudence a
provision of Rs.3,78,50,636/- has been made towards doubtful
receivables.
(a) Suryachakra Global Enviro Power Limited (SGEPL):
SGEPL along with its wholly owned subsidiaries is engaged in generation
and sale of power. SGEPL and its subsidiaries have incurred substantial
losses and the net worth of the respective companies has been fully
eroded. In view of high input cost, the power plants of these
companies have been closed for substantial period during the financial
year 2011-12. During 12 - 13, except for one plant all other plants
were inoperative. During March''12, the electricity distribution
companies of respective power plants had increased the tariff for the
power generated and exported. In view of such upward revision in the
tariff , the management expected that the plants can be operated
profitably and commenced the process of recommissioning the plants.
However, due to liquidity crunch, the recommissioning process could not
be completed. Management is making efforts to resolve the liqidity
crunch and commence the operations at the earliest. The management is
confident that all these companies will be revived and generate
adequate profits and cash flows to meet the respective financials
obligations. Management is also of the opinion that there would not be
any impairment and all the plants would realise more than the carrying
value of the assets as at the reporting period.
The diminution in the value of these investments is considered to be of
temporary in nature and hence no provision for diminution is considered
necessary at present. However as a measure of prudence, the company,
diuring the year ended June 30, 2012 made a provision of
Rs.13,90,98,212/- towards doubtful advances.
(b) Suryachakra Energy (Chhattisgarh) Private Limited (SECPL):
SECPL is a 100% subsidiary of the company and is engaged in setting
upto a 350MW coal based power project at Sapos Village, Jangir-Champa
District in the State of Chhattisgarh at an estimated project cost of
SECPL has obtained most of the requisite licenses for setting up the
project; signed a Memorandum of Understanding (MOU) with Chattisghar
State Electricity Board; and entered into an Implementation Agreement
with Chattisghar State Power Distribution Company Limited, for setting
up the said power project.
SECPL has spent an amount of Rs. 45,59,27,070 towards advances to
suppliers of capital equipments and incidental expenses . Management is
confident of mobilizing the requisite funds to execute the project and
recover the investment made in the project. Hence, no provision for
diminution in the value of investment is considered necessary at this
stage.
(c) Suryachakra Global Ventures Limited (SGVL):
SGVL is a wholly owned subsidiary of the company incorporated in
Honkong under Companies Ordinance. The Company has decided to acquire
through SGVL coal mines for captive use by other subsidiaries. During
the year ended June 30, 2012, the company advanced an amount of
Rs.85,01,25,542/- (USD 1,90,00,000) to SGVL, out of the proceeds of the
GDRs issue.
SGVL has entered into an MOU with Symphony Trading and Investments
Limited (STIL) having offices in Singapore, Hongkong etc., for
acquiring interests in coal mines in Indonesia. STIL is having
experience in identifying and acquiring suitable coal mines for its
clients. Pursuant to the said MOU, SGVL on 28th April''2011, has paid
USD 1,90,00,000 as advance to STIL for acquiring interests in two coal
mines from M/s. Surajaya Indelberg in Indonesia. As per MOU, STIL has
agreed to return the advance, if transaction of coal mine acquisition
is not successful with in the timelines mutually agreed / extended. Due
to change in the Indonesian policy, the transaction could not be
completed.In view of the prevailing uncertain conditions relating to
coal mining activities in Indonesia, the company has called back the
advance given to STIL and is making all efforts to recover the advance.
During the year, management has intensified the efforts for recovery
and has commenced the negotiations and is also in the process of
initiating legal remedies for recovering the advance.
Management is confident of recovery of the advance. Shortfall if any,
in recovery will be adjusted in the year of final settlement. Hence no
provision towards doubtful advance has been made.
Note: 6
Notices from SBI Global Factors Ltd:
During the year ended June 30, 2012, M/s. SBI Global Factors Limited an
unsecured creditor had filed a petition before the Honourable High
Court of Andhra Pradesh for winding up of the company u/s 443 (1) (c)
of the Companies Act, 1956. The Honourable High Court of Andhra
Pradesh, had admitted the petition. Company has appealed against the
said petition which is pending for hearing. Company is confident of
resolving the matter amicably.
Note: 7
Borrowings (other than from banks), receivables, loans and advances,
advances on capital account and payables are subject to review /
reconciliation / confirmations. Adjustments, if any will be made on
completion of such review / reconciliation / confirmations /
identification of doubtful / bad advances.
Note: 8
Segment Reporting
The Company''s operations predominantly consists of generation and sale
of electricity. Hence there are no reportable segments under the
Accounting Standard - 17. The Company''s business operations are
primarily concentrated in India. The conditions prevailing in India
being uniform, no separate geographical disclosures are considered
necessary.
Note: 9
Related party transactions
(a) The related parties where control exists are subsidiaries and step
down subsidiaries. There are no other parties over which the company
has control.
(b) Related parties where control exists and with whom transactions
have taken place during the year are as follows:
(i) Subsidiary
- Suryachakra Global Enviro Power Limited
- Suryachakra Energy (Chhattisgarh) Private Limited
- Suryachakra Global Ventures Limited
(ii) Step down subsidiaries
- South Asian Agro Industries Limited
- MSM Energy Limited
- Sri Panchajanya Power Private Limited
(iii) Key Managerial Personnel (KMP) represented on the Board of
Directors
- Dr. S. M. Manepalli, Managing Director
- Mr. K Vijay Kumar, Executive Director (w.e.f 15.05.2012)
- Mrs. B.N.Raja Kumari, Executive Director (w.e.f 16.07.2012)
(iv) Enterprises over which Key Managerial Personnel or their relatives
have significant influence (Significant interest entities)
- Suryachakra Thermal Energy (Andhra) Private Limited
- Suryachakra Thermal (Madhya Pradesh) Private Limited
(v) Non-Executive Directors on the Board
- Mr. P. K.. Bhattarcharjee
- Mr. Mahesh Chand
- Mr. V. S. Murthy
- Mr. M. Seshavatharam (son of Managing Director, resigned w.e.f.
15.05.2012)
- Mr. A Ramesh Kumar
Note: 10
Deferred taxes
The Company had started claiming deduction under Section 80-IA of the
Income Tax Act, 1961 from the year ended 31, March, 2011. Based on the
assessment of the deferred tax as on March 31, 2013, the timing
differences arising in the current year will reverse within the tax
holiday period. Accordingly, no deferred tax has been recognised in the
books of accounts of the Company as on March 31, 2013.
Note : 11
The current year figures of statement of profit and loss are for nine
months as against fifteen months for the previous year, hence the
figures are not comparable.
Jun 30, 2012
Note 1: Corporate Information
Suryachakra Power Corporation Limited ("the Company") was
incorporated on 28 February 1995, as a Public Limited Company. The
Company was converted into a Private Limited Company with effect from 9
August 2000. Pursuant to this, the name of the Company was changed to
"Suryachakra Power Corporation Private Limited". The Company was
re- converted into a public limited company with effect from 8
September 2005. Pursuant to this, the name of the Company was changed
to Suryachakra Power Corporation Limited.
The Company is engaged in the generation and sale of electricity. The
commercial operation started with effect from 1 April 2003. The Company
is listed in Bombay Stock Exchange since 23 July 2007. The Company is
also engaged in business of trading of coal from the year 31 March
2009.
Note:
During the year, the Company has issued 36,50,000 Global Depositary
Receipts (GDR) each representing twenty equity share of nominal value
Rs.10/- at an offer price of US$6.30 per GDR. Subsequently, 7,30,00,000
shares have been allotted as underlying shares to the GDRs.
Consequently, the share capital stands increased by Rs.73,00,00,000 and
securities premium by Rs.29,53,47,050. All the underlying shares have
been withdrawan and there are no GDRs outstanding as at June 30, 2012.
The proceeds from the issue have been utilised as follows:
2.1 Rights, preferences and restrictions attached to equity shares
The company has only one class of shares referred to as equity shares
having a par value of Rs.10 per share. Each holder of equity shares is
entitled to one vote per share.
In the event of liquidation of the company, the holders of equity
shares will be entitled to receive surplus from sale of assets after
setting off of the liabilities. The distribution will be in proportion
to the number of equity shares held by the shareholders.
3.1 Nature of Security for term loans
A. Term loans from State Bank of India (SBI) including foreign
currency term loan are secured by:
(i) First charge on the entire fixed assets of company, present and
future on pari passu basis with other term lender, SREI Equipment
Finance Pvt Ltd
(ii) Registered mortagage of leasehold rights of land measuring 4.12
Ha. Bearing Survey Nos. 462, 467,636, 635/2, 625/1, 634/1, 635/3 and
635/4 situated at Bambooflat, Ferrargunj Tehsil, Andaman, A& N Islands,
including assignment of Power Purchase Agreement, EPc contract and o&M
contract, insurance policy and other project documents.
(iii) collateral security by:
(a) Pledge of 84,37,388 shares of Suryachakra Power Corporation Limited
(face value of F10).
(b) Vacant urban residential plot no. 74 admeasuring 350 sq. yards,
Survey Nos.300P, 302, 309P, in the name of Shri M. Seshavatharam and
situated in Krishnaja Hills, Village: Bachupally, Mandal:
Quthubullapur, District Ranga Reddy, Andhra Pradesh.
(c) Open vacant plots of land in the name of Shri M. Naveen Babu
Admeasuringà 1.47 acres RS No.368; 0.97 acre RS No.09; 0.38 acre RS
No.11. All three at village: Thorreddu, Rajahmundry Rural Mandal,
District East Godavari, Andhra Pradesh. 3.02 acres RS No.246/1,
village: Madhurapudi, Korukondala Mandal, District East Godavari,
Andhra Pradesh.
(d) 6 Nos. vacant residential plots in the name of Shri M. Naveen Babu
in Western Block No.6-95, 6- 95/1, 6-97, 6-97/1, 6-97/3 and 6-96
admeasuring 2082.88 sq. yards situated in RS 124/4, at village:
Thorreddu, Rajahmundry Rural Mandal, District East Godavari, Andhra
Pradesh.
(iv) Personal Guarantee by Dr. S.M Manepalli, Shri M. Naveen Babu, Shri
M. Seshavatharam and Smt T. Sreelatha.
Notes to the financial statements for the year ended June 30, 2012
(All amounts in Indian rupees, except share data and where otherwise
stated)
B. Term loan from SREI Equipment Finance Private Limited is secured
by:
(i) First charge on all movable and immovable assets, present and
future of the company in favour of SREI on a pari-passu basis with SBI.
(ii) Assignment in favour of SREI, SBI on a pari-passu basis, of all
rights titles and interests of the company in, to and under all assets
of the project and all projects documents, insurance policies,
permits/approval etc, to which the company is a party and all other
contracts relating to project.
(iii) Pari-passu first charges on company's all the accounts
including but not limited to Trust and Retention Account and the
Debt-Service Letter of Credit / Reserve Account.
(iv) The Equity Shares held by promoters in the project company
(minimium 51%) shall be pledged to SREI and SBI on a pari-passu basis.
(v) Non-disposal undertaking by Caterpillar and BSES for not disposing
off their respective equity shares of SPCL during the currency of the
credit facilities sanctioned to SPCL without the written consent of
SREI and SBI.
3.2 Terms of repayment of secured term loans
(i) Rupee term loan from State Bank of India carries an interest of 18%
per annum. The loan outstanding as on the date of the balance sheet has
fallen due for repayment.
(ii) Foreign currency term loan from State Bank of India carries an
interest of 3.5561% and is repayable in two equal quarterly instalments
of USD 87,500 each on August 23, 2012 and November 23, 2012.
(iii) Working capital term loan from State Bank of India (Kolkata)
carries an interest of 12.75% per annum and is repayable in sixty nine
monthly unequal instalments. First sixty months @ Rs.35,40,000 each and
next eight months @ Rs.39,30,000 each and the last instalments @
Rs.39,60,000.
(iv) Term loan form SREI Equipment Finance Private Limited carries an
interest of 19.5% per annum. The loan outstanding as on the date of the
balance sheet has fallen due for repayment.
4.1 Nature of Security for Cash Credits
Cash Credits from State Bank of India is secured by:
(i) Exclusive first charge on the entire current assets of the company
both present and future.
(ii) Assignment of LC from Andaman and Nicobar Administration
(iii) Colateral security on second charge on all fixed assets of the
company
Note: 5 As at As at
Contingent liabilities and commitments June 30, March 31,
(to the extent not provided for) 2012 2011
(i) Contingent liabilities
(a) Letter of credit outstanding - 29,700,000
(b) Claims against the company not
acknowledged as debt - Liquidated
damages for delay in commencement
of commercial operations 31,570,000 31,570,000
(c ) Corporate guarantee given to Bunge
Emissions Fund Limited against
the loan provided to Suryachakra
Global Enviro Power Limited, a
subsidiary of the company. 70,908,000 -
(ii) Commitments
(a) Estimated amount of contracts
remaining to be executed on capital
account not provided for
(net of advances) - -
Note: 6
Disclosures under Section 22 of Micro, Small and Medium Enterprises
Development Act, 2006
The Ministry of Micro, Small and Medium Enterprises has issued an
office Memorandum dated August 26, 2008 which recommends that the Micro
and Small Enterprises should mention in their correspondence with its
customers the Enterpreneurs Memorandum Number as allotted after filing
of the Memorandum. However, during the year, the Company has not
received any intimation from suppliers regarding their status under the
Micro, Small and Medium Enterprises Development Act, 2006 and hence
disclosures, if any, relating to amounts unpaid as at year end together
with interest paid / payable as required under the said Act, have not
been given. Further in the view of the management, the impact of
interest, if any, that may be payable in accordance with the provisions
of the Micro, Small and Medium Enterprises Development Act, 2006 is not
expected to be material. The Company has not received any claim for
interest from any supplier under the said Act.
Note:
(a) Loans and Advances shown above, fall under the category of 'Long
Term Loans & Advances' in nature of Loans. No repayment schedule has
been specified in respect of these loans.
(b) All the above loans and advances are interest free.
(c) * Secured by a second charge by way of hypothecation of the fixed
assets of the lonee situated at Madwa Village, Tehsil: Janjgir, Champa,
District: Janjgir, Champa - Chhattisgarh.
B. Investment by the loanee in the shares of the Company and
subsidiaries
None of the loanees and loanees of subsidiary companies have made
investments in shares of the Company.
Note: 7
Revenue from A & N Administration
(i) The Company's revenue from sale of electricity is based on the
Power Purchase agreement (PPA) entered into with the Andaman and
Nicobar (A & N) Administration. The PPA is for a period of 15 years and
contains a set of pre-defined formulae for calculation of the revenue
to be billed on a monthly basis. Such billings as per terms of the PPA
include a fixed charge payment, a variable charge payment, incentive
payment, foreign exchange adjustment and change-in-law adjustment.
(ii) The Company, for the purpose of determining the fixed charge
monthly billings, invoices the A & N Administration based on the
capital cost as envisaged in the PPA. Pending final confirmation of
actual capital expenditure, no adjustment is made to the revenue. Such
adjustments, if any will be made in the period in which the amount
becomes determinable and is confirmed by the A & N Administration.
(iii) Revenues for the year ended June 30, 2012 include an amount of
Rs.10,13,89,890 (Previous year: Rs.5,94,94,972) billed by the company
as variable charge payment under the PPA, which has been rejected /
withheld by the A & N Administration on the grounds of the technical
interpretation of the formulae for computation of such charges. The
Company also has receivables amounting to Rs. 17,76,78,168 as at June
30, 2012 (Previous year: Rs. 85,904,780) on account of such rejections/
withheld. Further, the Company has accrued interest on such unpaid
invoices amounting to Rs. Nil for the year ended June 30, 2012
(Previous year: Rs. 4,37,21,965). Total Interest accrued on such
disagreements and included in the total receivables as at June 30, 2012
amounts to Rs. 127,574,329 (Previous year: Rs. 127,574,329). The
Company has during the year ended June 30, 2012 received an amount of
Rs. 96,16,501and Rs. 9,55,43,200/- on 9th July 2012 towards such
receivables.
The Company believes that the amounts billed including interest thereon
are recoverable based on the interpretation that can be inferred from
the formulae contained in the PPA.
Further, the company, upto the year ended March 31, 2011 has accrued,
interest on such unpaid invoices aggregating to Rs.12,75,74,329/-.
During the current year ended June 30, 2012 the company has reviewed
the recognition of interest and based on such review and as a measure
of prudence, has decided to discontinue further recognition of
interest. The same will be recognized in the year of receipt.
Management is confident of recovery of interest recognised upto March
31, 2011. Had the company continued to recognise the interest, the
loss for the year would be lower and retained earning would have been
higher by Rs. 7,95,18,166/-.
Note: 8
Trade Receivables
Trade receivables include an amount of Rs. 18,32,54,512/- relating to
coal trading activity which has been discontinued. Subsequent to the
Balance Sheet date, the company has realised an amount of
Rs.8,91,00,000/- against said dues. Management is continuously and
regularly pursuing with the respective debtors and confident of
recovering the balance amount. However, as ameasure of prudence a
provision of Rs. 3,78,50,636/- has been made towards doubtful
receivables.
Status of the subsidiaries is as follows:
(a) Suryachakra Global Enviro Power Ltd (SGEPL):
SGEPL along with its subsidiaries is engaged in generation and sale of
power. SGEPL and its subsidiaries have incurred substantial losses and
the net worth of the respective companies has been fully eroded. In
view of high input cost, the power plants of these companies have been
closed for substantial period during the financial year 2011-12. During
March'12, the electricity distribution companies of respective power
plants have increased the tariff for the power generated and exported.
In view of such upward revision in the tariff , the respective
companies have commenced the process of recommissioning the plants. The
management is confident that all these companies will be revived and
generate adequate profits and cash flows to meet the respective
financials obligations. Hence, the current diminution in the value of
these investments is considered to be of temporary in nature and hence
no provision for diminution is considered necessary at present. However
as a measure of prudence, the company has made a provision of Rs.
13,90,98,212/- towards advances given to the subsidiaries as doubtful.
(b) Suryachakra Energy(chhattisgarh) Private Ltd (SECPL):
SECPL is a 100% subsidiary of the company and is engaged in setting
upto a 350MW coal based power project at Sapos Village, Jangir-Champa
District in the State of Chhattisgarh at an estimated project cost of
Rs. 1900 Crores.SECPL has obtained requisite licenses for setting up
the project; signed a Memorandum of Understanding (MOU) with
Chattisghar
State Electricity Board; and entered into an Implementation Agreement
with Chattisghar State Power Distribution Company Limited, for setting
up the said power project SECPL upto March 31, 2012, spent an amount of
Rs. 45.65 Crores towards advances to suppliers of capital equipments
and incidental expenses . Management is confident of mobilizing the
requisite funds to execute the project and recover the investment made
in the project. Hence, no provision in the value of investment is
considered necessary at this stage.
(c) Suryachakra Global Ventures Ltd (SGVL):
SGVL is a wholly owned subsidiary of the company incorporated in
Honkong under Companies Ordinance. The Company through SGVL has decided
to acquire coal mine for captive use by other subsidiaries. In the
process, the company, out of the proceeds of the GDRs issued during the
year, has advanced an amount of Rs. 85,01,25,542/- (USD 1,90,00,000) to
SGVL. SGVL has entered an into an MOU with Symphony Trading and
Investments Limited(STIL) for acquiring interests in coal mines in
Indonesia. STIL is having offices in Singapore, Hongkong etc., and
having experience in identifying and acquiring suitable coal mines for
its clients. Pursuant to the said MOU, SGVL on 28th April'2011, has
paid USD 1,90,00,000 as advance to STIL for acquiring interests in two
coal mines from M/s. Surajaya Indelberg in Indonesia. As per MOU, STIL
has agreed to return the advance, if transaction of coal mine
acquisition is not successful with in a period of 6 months from the
date of the advance. In view of the prevailing uncertain conditions
relating to coal mining activities in Indonesia, the company has called
back the advance given to STIL and making efforts to recover the
advance. Management is confident of recovery of the advance. Shortfall
if any, in recovery will be adjusted in the year of final settlement.
Hence no provision towards doubtful advances, if any, has been made.
Note: 9
Notices from SBI Global Factors Ltd:
During the year M/s. SBI Global Factors Limited an unsecured creditor
has filed a petition before the Honourable High Court of Andhra Pradesh
for winding up of the company u/s 443 (1) (c) of the Companies Act,
1956. The Honourable High Court of Andhra Pradesh, had admitted the
petition. Company has appealed against the said petition which is
pending for hearing. Company is confident of resolving the matter
amicably.
Note: 10
Advance to Suppliers and Others
Balances recoverable in cash or in kind or for values to be received
are subject to confirmation and reconciliation. Necessary adjustments
if any, will be made in the year of reconciliation / settlement.
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.
Note: 11
Segment Reporting
The Company's operations predominantly consists of generation and
sale of electricity. The coal trading business of the company has been
discontinued. Hence there are no reportable segments under the
Accounting Standard - 17. The Company's business operations are
primarily concentrated in India. The conditions prevailing in India
being uniform, no separate geographical disclosures are considered
necessary.
Note: 12
Related party transactions
(a) The related parties where control exists are subsidiaries and step
down subsidiaries. There are no other parties over which the company
has control.
(b) Related parties where control exists and with whom transactions
have taken place during the year are as follows:
(i) Subsidiary
- Suryachakra Global Enviro Power Limited
- Suryachakra Energy (Chhattisgarh) Private Limited (from March 05,
2011)
- Suryachakra Global Ventures Limited
- Suryachakra Power Venture Private Limited (till March 21, 2011)
(ii) Step down subsidiaries
- South Asian Agro Industries Limited
- MSM Energy Limited
- Sri Panchajanya Power Private Limited
(iii) Key Management Personnel (KMP) represented on the Board of
Directors
- Dr. S. M. Manepalli, Managing Director
- Mr. K Vijay Kumar, Executive Director
(iv) Enterprises over which Key Managerial Personnel or their relatives
have significant influence (Significant interest entities)
- Suryachakra Thermal Energy (Andhra) Private Limited
- Suryachakra Thermal (Madhya Pradesh) Private Limited
- Suryachakra Power Venture Private Limited (from March 22, 2011)
(v) Non-Executive on the Board of Directors
- Mr. K Satyanarayana
- Mr. P. K. Bhattarcharjee
- Mr. Mahesh Chand
- Mr. V. S. Murthy
- Mr. M. Seshavatharam (son of Managing Director)
- Mr. A Ramesh Kumar
- Mr. Commodore K.V. Subramaniyam (Resigned w.e.f. 30.10.2011)
- Mr. Shri K.B.Trehan (Resigned w.e.f. 23.07.2011)
- Mr. P.Visweswara Rao, IAS (Retd) included in P.Y. Non Executive
Directors
Note: 13 Deferred taxes
The Company had started claiming deduction under Section 80-IA of the
Income Tax Act, 1961 from the year ended 31March 2011. Based on the
assessment of the deferred tax as on 30 June 2012, the timing
differences arising in the current year will reverse within the tax
holiday period. Accordingly, no deferred tax has been recognised in the
books of accounts of the Company as on 30 June 2012.
Note: 14
Discontinuing operations
The Company's Board of Directors at their meeting held on 29 October
2009 had approved to discontinue the coal trading business. Accordingly
the coal trading business was discontinued w.e.f. June 30, 2011. The
results of discontinued business during the year until the date of
discontinuation were as under:
Note: 15
The management committee of Board of Directors of the Company at it's
Meeting held on 29th March 2012, has approved an extention of the
financial year 2011-12 of the company by a period of three months i.e
upto June 30, 2012. The figures of the current year are for 15 months
and for the previous year are for 12 months. Hence current year figures
are not comparable with previous year figures.
Note: 16
Previous year figures
The Company has prepared these financial statements as per the format
prescribed by Revised Schedule VI to the Companies Act, 1956 issued by
the Ministry of Corporate Affairs, Government of India. Previous
figures have been recasted/restated to conform to the classification
required by the Revised Schedule VI to financial statements for the
year ended June 30, 2012.
Mar 31, 2011
Background
Suryachakra Power Corporation Limited ("the Company") was incorporated
on 28 February 1995, as a Public Limited Company. The Company was
converted into a Private Limited Company with effect from 9 August
2000. Pursuant to this, the name of the Company was changed to
"Suryachakra Power Corporation Private Limited". The Company was re-
converted into a public limited company with effect from 8 September
2005. Pursuant to this, the name of the Company was changed to
Suryachakra Power Corporation Limited.
The Company is engaged in the generation and sale of electricity. The
commercial operation started with effect from 1 April 2003. The Company
is listed in Bombay Stock Exchange since 23 July 2007. The Company is
also engaged in business of trading of coal from the year 31 March
2009.
1. Revenue from A&N Administration
a) The Company's revenue from sale of electricity is based on the Power
Purchase agreement (PPA) entered into the Andaman and Nicobar (A & N)
Administration. The PPA is for a period of 15 years and contains a set
of pre-defined formulae for calculation of the revenue to be billed on
a monthly basis. Such billings as per terms of the PPA include a fixed
charge payment, a variable charge payment, incentive payment, foreign
exchange adjustment and change-in-law adjustment.
b) The Company, for the purpose of determining the fixed charge monthly
billings, invoices the A & N Administration based on the capital cost
as envisaged in the PPA. Pending final confirmation of actual capital
expenditure, no adjustment is made to the revenue. Such adjustments, if
any will be made in the period in which the amount becomes determinable
and is confirmed by the A & N Administration.
c) Revenues for the year ended 31 March 2011 include an amount of Rs.
59,494,972 (Previous year: Rs. 47,835,455) billed by the company as
variable charge payment under the PPA, which has been rejected/
withheld by the A & N Administration on the grounds of the technical
interpretation of the formulae for computation of such charges. The
Company also has receivables amounting to Rs. 85,904,780 as at 31 March
2011 (Previous year: Rs. 118,640,315) on account of such rejections/
withheld. Further, the Company has accrued interest on such unpaid
invoices amounting to Rs. 43,721,965 for the year ended 31 March 2011
(Previous year: Rs. 28,503,384). Total Interest accrued on such
disagreements and included in the total receivables as at 31 March 2011
amounts to Rs. 127,574,329 (Previous year: Rs. 83,852,364). The Company
has during the year ended 31 March 2011 received an amount of Rs.
92,230,508 towards such receivables as mentioned above.
d) The Company believes that the amounts billed including interest
thereon are recoverable based on the interpretation that can be
inferred from the formulae contained in the PPA.
2. Deferred taxes
The Company had started claiming deduction under Section 80-IA of the
Income Tax Act, 1961 from the year ended 31March 2011. Based on the
assessment of the deferred tax as on 31 March 2011, the timing
differences arising in the current year will reverse within the tax
holiday period. Accordingly, no deferred tax has been recognised in the
books of accounts of the Company as on 31 March 2011.
3. Related parties
(a) The related parties where control exists are subsidiaries and step
down subsidiaries. There are no other parties over which the company
has control.
(b) Related parties where control exists with whom transactions have
taken place during the year are follows:
(i) Subsidiary
÷ Suryachakra Global Enviro Power Limited
÷ Suryachakra Energy (Chattisgarh) Private Limited (from 05 March 2011)
÷ Suryachakra Global Ventures Limited (from 26 January 2011)
÷ Suryachakra Power Venture Private Limited (for the period 16
September 2010 to 21 March 2011)
(ii) Step down subsidiaries
÷ South Asian Agro Industries Limited (Subsidiary till 20 January 2010)
÷ MSM Energy Limited (Subsidiary till 20 January 2010)
÷ Sri Panchajanya Power Private Limited (Subsidiary till 20 January
2010)
(iii) Key Management Personnel (KMP) represented on the Board of
Directors
÷ Dr. S. M. Manepalli, Managing Director
(iv) Enterprises over which Key Managerial Personnel has significant
influence (Significant interest entities)
÷ Suryachakra Thermal Energy (Andhra) Private Limited
÷ Suryachakra Thermal (Madhya Pradesh) Private Limited
÷ Suryachakra Power Venture Private Limited
÷ Suryachakra Energy (Chattisgarh) Private Limited (till 04 March 2011)
(v) Non-executive on the Board of Directors
÷ Mr. P. K.. Bhattarcharjee
÷ Mr. Mahesh Chand
÷ Mr. K. Satyanarayana
÷ Mr. V. S. Murthy
÷ Commodore K. V. Subramaniyam, YSM (Retd.)
÷ Mr. M. Seshavatharam (Son of Managing Director)
÷ Mr. A Ramesh Kumar (from 10 August 2010)
÷ Mr. K. B. Trehan (from 11 November 2010)
÷ Mr. P. Visweswara Rao, IAS (Retd.) (from 22 November 2010)
Schedule 20. Notes to the accounts (Continued)
The managerial personnel are covered by the Company's gratuity policy
and are eligible for leave encashment along with other employees of the
Company. The proportionate amount of gratuity and leave encashment cost
pertaining to the managerial personnel has not been included in the
aforementioned disclosures as these are not determined on an individual
basis.
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.
4. Segment reporting
The Company's business is organised and management views the
performance based on the business segments as mentioned below:
÷ Electricity sale: This division of the Company is engaged in the
generation and sale of electricity.
÷ Coal trading: This division of the Company is engaged in the trading
of coal.
Since the business operations of the Company are primarily concentrated
in India, the Company is considered to operate only in one geographical
segment.
Segment policies
The accounting policies consistently used in the preparation of the
financial statements are also applied to record revenue and expenditure
in individual segments.
Revenue and direct expenses in relation to segments are categorised
based on items that are individually identifiable to that segment.
Certain expenses are not specifically allocable to individual segments
and pertain to the entity as a whole and are disclosed as unallocated
expenses.
Assets and liabilities are either specifically identifiable with
individual segments or have been allocated to segment on a systematic
basis. Assets that pertain to the entity as a whole such as income tax
balances have been disclosed as unallocated assets. Liabilities other
than loan balances and income tax balances have been identified against
each segment or have been allocated on a reasonable basis.
5. Discontinuing operations
The Company's Board of Directors at their meeting held on 29 October
2009 approved a definitive plan wherein, its coal trading business will
be transferred to a separate legal entity to enable to focus on the
core business of power generation, subject to the receipt of all
regulatory and other approvals. The execution of the above plan is in
process and expected to be completed by October 2011. In accordance
with AS 24 (Discontinuing operations), as the initial event has
occurred during the year ended 31 March 2010, the coal trading business
(representing coal trading segment) would therefore qualify as a
discontinuing operation under the above accounting standard.
6. The Ministry of Micro, Small and Medium Enterprises has issued an
Office Memorandum dated 26 August 2008 which recommends that the Micro
and Small Enterprises should mention in their correspondence with its
customers the Entrepreneurs Memorandum Number as allotted after filing
of the Memorandum. Accordingly, the disclosure in respect of the
amounts payable to such enterprises as at 31 March 2011 has been made
in the financial statements based on information received and available
with the Company. Further in the view of the management, the impact of
interest, if any, that may be payable in accordance with the provisions
of the Micro, Small and Medium Enterprises Development Act, 2006 is not
expected to be material. The Company has not received any claim for
interest from any supplier under the said Act.
7. Exceptional items, net
(a) The Company has restructured its investments in subsidiaries and
accordingly transferred its investment in subsidiaries MSM Energy
Limited, South Asian Agro Industries Limited and Sri Panchajanya Power
Private Limited having a total carrying value of Rs. 500,683,000 to its
wholly owned subsidiary Suryachakra Global Enviro Power Limited
(Formerly Lahari Power and Steels Limited) for total consideration of
Rs. 569,374,243 to be settled in the form of additional share to be
issued in Suryachakra Global Enviro Power Limited resulting in a profit
of Rs. 68,691,243 which has been disclosed as an exceptional item in
the year ended 31 March 2010. Further, the Company has been issued
shares in Suryachakra Global Enviro Power Limited of Rs. 143,402,645,
representing the share application money and un-secured loan in all the
above mentioned subsidiaries. Climate Change Investment I I S.A. SICAR
(CCI) has invested Rs. 400,000,000 and was allotted a 22.01% stake in
Suryachakra Global Enviro Power Limited.
(b) In March 2006, one of the DG Set with a capacity of 5 MW output had
suffered major damages. The Company made a claim of Rs. 99,141,696 with
the insurance authorities (net of allowances of Rs.5,000,000). Pending
final assessment of the claim, the Company had received interim amounts
totaling to Rs.54,957,102 from the insurance Company including
Rs.11,829,899 during the year ended 31 March 2010. The insurance
company vide its letter dated 11 May 2010 has confirmed that all the
amounts paid till date are final and no claim would be payable.
Accordingly, the balance amount of claims receivable amounting to Rs.
44,184,594 has been written off during the year which has been
disclosed as an exceptional item in the year ended 31 March 2010.
8. During the year ended 31 March 2011, the Company has transferred
the coal based thermal power project under development in Chhattisgarh
to Suryachakra Energy (Chhattisgarh) Private Limited (SECPL) for a
consideration of Rs.356,400,000 (including Rs. 39,785,160 incurred
during the year), being the carrying value of the assets in the said
power project against equity shares in SECPL.
9. During the year ended 31 March 2010, the unamortised expenses
related to the Initial Public Offer of the Company amounting is
Rs.39,474,865 was adjusted to the Securities Premium account. These
were carried forward in earlier years as Miscellaneous Expenditure and
amortised over a period of 5 years. Had the Company followed amortising
these over a period of 5 years, the profit for the year ended 31 March
2010 and the accumulated profits as at 31 March 2010 would have been
lower by Rs.10,765,872.
10. The Board of directors in the meeting dated 22 November 2010,
approved the Scheme of Amalgamation (Ãthe scheme') of Suryachakra
Energy & Infrastructure Limited (SEIPL), a Company belonging to the
promoter group of the Company. The Company has not filed the Scheme
with the honorable High Court for necessary approvals as the Company is
contemplating certain changes in the Scheme.
11. Subsequent to the year end, the Company has issued 3,650,000
Global Depository Receipts (GDRs) at USD 6.3 per GDR. These GDRs have
been listed in the Euro MTF Market on 28 April 2011. The Company has
listed the underlying 73,000,000 equity shares in Bombay Stock Exchange
on 19 May 2011.
12. Previous year figures
Previous years' figures have been regrouped / reclassified wherever
necessary, to conform to current years' classification.
Mar 31, 2010
Background
Suryachakra Power Corporation Limited ("the Company") was incorporated
on February 28, 1995 as a Public Limited Company. The Company was
converted into a Private Limited Company with effect from August 9,
2000. Pursuant to this, the name of the Company was changed to
"Suryachakra Power Corporation Private Limited". The Company was
re-converted into a public limited company with effect from 8 September
2005. Pursuant to this, the name of the Company was changed to
Suryachakra Power Corporation Limited. The Company is engaged in the
generation and sale of electricity. The commercial operation was
started with effect from 1 April 2003. The Company is listed in Bombay
Stock Exchange since 23 July 2007.
1. (a) Capital commitments and contingent liabilities:
Particulars As at As at
31 March 2010 31 March 2009
i. Letter of credit outstanding 100,000,000 50,000,000
ii. Estimated amount of contracts
necessary to be 4,812,916,003 4,760,000,000
executed on capital amount not
provided for (net of advances)
iii. Liquidated damages for delay
in commencement of 31,570,000 31,570,000
commercial operations
iv. Claims made against the Company
by suppliers and not 860,162 -
accepted by the Company
*Subsidiaries till 20 January 2010 (Refer note 15 of Schedule 21)
2. (a) The Companys revenue from sale of electricity is based on the
Power Purchase agreement (PPA) entered into the Andaman and Nicobar (A
& N) Administration. The PPA is for a period of 15 years and contains a
set of pre-defined formulae for calculation of the revenue to be billed
on a monthly basis. Such billings as per terms of the PPA include a
fixed charge payment, a variable charge payment, incentive payment,
foreign exchange adjustment and change-in-law adjustment.
(b) The Company, for the purpose of determining the fixed charge
monthly billings, invoices the A & N Administration based on the
capital cost as envisaged in the PPA. Pending final confirmation of
actual capital expenditure, no adjustment is made to the revenue. Such
adjustments, if any will be made in the period in which the amount
becomes determinable and is confirmed by the A & N Administration.
(c) Revenues for the year ended 31 March 2010 include an amount of Rs.
47,835,455 (Previous year: Rs. 5,688,795) billed by the company as
variable charge payment under the PPA, which has been rejected/
withheld by the A & N Administration on the grounds of the technical
interpretation of the formulae for computation of such charges. The
Company also has receivables amounting to Rs. 118,640,315 as at 31
March 2010 (Previous year: Rs. 70,804,860) on account of such
rejections/ withheld. Further, the Company has accrued interest on such
unpaid invoices amounting to Rs. 28,503,384 for the year ended 31 March
2010 (Previous year: Rs. 21,032,797). Total Interest accrued on such
disagreements and included in the total receivables as at 31 March 2010
amounts to Rs. 83,852,364 (Previous year: Rs. 55,348,980).
(d) The Company believes that the amounts billed including interest
thereon are recoverable based on the interpretation that can be
inferred from the formulae contained in the PPA and has filed a
petition with the Joint Electricity Regulatory Commission (JERC) in
October 2009 claiming their long pending dues for the unresolved
issues. On March 3, 2010, the A&N Administration has on a detailed
analysis of the case and the unresolved issues determined that the
matter is highly technical and requested the Central Electricity
Authority (CEA) to re-examine the complete cost document of the Company
to proceed further in the matter.
3. Deferred taxes
From the current financial year, the Company has started claiming
deduction under Section 80-IA of the Income Tax Act, 1961. Based on the
assessment of the deferred tax as on 31 March 2010, the timing
differences arising in the current year will reverse within the tax
holiday period. Accordingly, no deferred tax has been recognised in the
books of accounts of the Company as on 31 March 2010.
4. Earnings per share (EPS)
The Company has no potentially dilutive equity shares outstanding
during the year.
5. Related parties
(a) The related parties where control exists are subsidiaries and step
down subsidiaries. There are no other parties over which the company
has control.
(b) Related parties where control exists with whom transactions have
taken place during the year are follows:
(i) Subsidiary
- Suryachakra Global Enviro Power Limited (Formerly Lahari Power and
Steels Limited)
(ii) Step down subsidiaries
- South Asian Agro Industries Limited (subsidiary till 20 January 2010)
- MSM Energy Limited (subsidiary till 20 January 2010)
- Sri Panchajanya Power Private Limited (subsidiary till 20 January
2010)
(iii) Key Management Personnel (KMP) represented on the Board of
Directors.
- Dr. S. M. Manepalli, Managing Director
(iv) Enterprises over which Key Managerial Personnel has significant
influence (Significant interest entities)
- Suryachakra Thermal Energy (Andhra) Private Limited
- Suryachakra Energy (Chattisgarh) Private Limited
- Suryachakra Thermal (Madhya Pradesh) Private Limited
- Suryachakra Power Venture Private Limited
(v) Non-executive on the Board of Directors.
- Mr. P. V. Rao, IAS (Retd.)
- Mr. P. K.. Bhattarcharjee
- Mr. Mahesh Chand
- Mr. K. Satyanarayana
- Mr. V. S. Murthy
- Commodore K. V. Subramaniyam, YSM (Retd.)
- Mr. M. Seshavatharam
(c) Particulars of related party transactions and balances
Notes
1) Includes shares allotted out of share application money paid in
earlier years Rs. Nil (Previous year: Rs. 79,113,324).
2) Equity investments in subsidiary and step down subsidiaries have
been disclosed under "Investments" (Schedule 7). Loans and advances
including share application money given/paid to subsidiary and step
down subsidiaries and enterprises over which the KMP has significant
influence have been disclosed under "Loans and advances" (Schedule 11).
The managerial personnel are covered by the Companys gratuity policy
and are eligible for leave encashment along with other employees of the
Company. The proportionate amount of gratuity and leave encashment cost
pertaining to the managerial personnel has not been included in the
aforementioned disclosures as these are not determined on an individual
basis.
6. Employee benefits
The following table sets out the status of the gratuity plan as
required under AS 15 (Revised):
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.
7. Segment Reporting
The Companys business is organised and management views the
performance based on the business segments as mentioned below:
- Electricity sale: This division of the Company is engaged in the
generation and sale of electricity.
- Coal trading: This division of the Company is engaged in the trading
of coal.
Since the business operations of the Company are primarily concentrated
in India, the Company is considered to operate only in one geographical
segment.
Segment policies
The accounting policies consistently used in the preparation of the
financial statements are also applied to record revenue and expenditure
in individual segments.
Revenue and direct expenses in relation to segments are categorised
based on items that are individually identifiable to that segment.
Certain expenses are not specifically allocable to individual segments
and pertain to the entity as a whole and are disclosed as unallocated
expenses.
Assets and liabilities are either specifically identifiable with
individual segments or have been allocated to segment on a systematic
basis. Assets that pertain to the entity as a whole such as income tax
balances have been disclosed as unallocated assets. Liabilities other
than loan balances and income tax balances have been identified against
each segment or has been allocated on a reasonable basis.
8. Discontinued operations
The Companys Board of Directors at their meeting held on 29 October
2009 approved a definitive plan wherein, its coal trading business will
be transferred to a separate legal entity to enable to focus on the
core business of power generation, subject to the receipt of all
regulatory and other approvals. The execution of the above plan is in
process and expected to be completed by June 2010. In accordance with
AS 24 (Discontinuing operations), as the initial event has occurred
during the year, the coal trading business (representing coal trading
segment) would therefore qualify as a discontinuing operation under the
above accounting standard.
Discontinued operations (continued)
Note 1
Interest expense and related interest bearing liabilities have been
considered as unallocable items for segment reporting in note 10 of
schedule 21.
Note 2
Tax on profit on discontinuing operations have been computed under the
provisions applicable for computing Minimum Alternate Tax (MAT), as the
tax on the total income of the Company has been computed on this basis.
9. Quantitative details
Licensed and installed capacities are as certified by management and
have not been verified by the auditors as this is a technical matter.
10. Prior period items of Rs.1,539,698 in the year ended 31 March 2009
represents operational and maintenance expenses omitted to be recorded
in previous years, recorded in the year ended 31 March 2009.
11. The Company has sent out letters seeking confirmations from its
suppliers whether they fall under the category of micro, small and
medium enterprises as mentioned under the Micro, Small and Medium
Enterprises Development Act, 2006. Based on the information available
with the Company, the Company believes that it does not have any
outstanding dues to micro, small and medium enterprises. Further, the
Company has not paid any interest to the micro, small and medium
enterprises.
12. Exceptional items, net
(a) The Company has restructured its investments in subsidiaries and
accordingly transferred its investment in subsidiaries MSM Energy
Limited, South Asian Agro Industries Limited and Sri Panchajanya Power
Private Limited having a total carrying value of Rs. 500,683,000 to its
wholly owned subsidiary Suryachakra Global Enviro Power Limited
(Formerly Lahari Power and Steels Limited) for total consideration of
Rs. 569,374,243 to be settled in the form of additional share to be
issued in Suryachakra Global Enviro Power Limited resulting in a profit
of Rs. 68,691,243 which has been disclosed as an exceptional item.
Further, the Company has been issued shares in Suryachakra Global
Enviro Power Limited of Rs. 143,402,645, representing the share
application money and un-secured loan in all the above mentioned
subsidiaries. Climate Change Investment I I S.A. SICAR (CCI) has
invested Rs. 400,000,000 and was allotted a 22.01% stake in Suryachakra
Global Enviro Power Limited.
(b) In March 2006, one of the DG Set with a capacity of 5 MW output had
suffered major damages. The Company made a claim of Rs. 99,141,696 with
the insurance authorities (net of allowances of Rs.5,000,000). Pending
final assessment of the claim, the Company had received interim amounts
totaling to Rs. 54,957,102 from the insurance Company including
Rs.11,829,899 during the year ended 31 March 2010. The insurance
company vide its letter dated 11 May 2010 has confirmed that all the
amounts paid till date are final and no claim would be payable.
Accordingly, the balance amount of claims receivable amounting to Rs.
44,184,594 has been written off during the year which has been
disclosed as an exceptional item.
13. During the current year, the unamortised expenses related to the
Initial Public Offer of the Company amounting to Rs. 39,474,865 was
adjusted to the Securities Premium account. These were carried forward
in earlier years as Miscellaneous Expenditure and amortised over a
period of 5 years. Had the Company followed amortising these over a
perod of 5 years, the profit for the year and the accumulated profits
as at 31 March 2010 would have been lower by Rs. 10,765,872.
14. In July 2007, the Company made a public offer of its shares to
Indian investors. There are no unutilised amounts out of such funds
raised. Share application money pending refund as on 31 March 2010 is
Rs. 159,500 (Previous year: Rs. 159,500).
15. Previous year figures
Previous years figures have been regrouped reclassified wherever
necessary, to conform to current years classification.