AUDITORS' REPORT... · SJK Powergen Limited Profit and Loss Account for the period ended 31st March 2010 (Amount in Rupees) Particulars Schedule For the period ending 31st March 2010

GIRISH MURTHY & KUMAR

Chartered Accountants

4502, High Point IV, 45, Palace Road, Bangalore – 560 001. Ph : 22 65 202 / 23 81 473

AUDITORS' REPORT

TO THE MEMBERS OF SJK POWERGEN LIMITED We have audited the attached Balance Sheet of (‘the Company’) as at 31st March 2010 and the Statement of expenditure during the construction period, annexed thereto for the period ended on that date. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Further to our comments in the Annexure referred to above, we report that:

1. We have obtained all the information and explanations which to the best of Our Knowledge and belief were necessary for the purpose of our audit.

2. In our opinion, proper books of account, as required by law have been kept by

the company, so for as appears from our examination of the books. 3. The said Balance Sheet, the Profit & Loss Account & the cash flow statement are

in agreement with books of account. 4. In our opinion, the Balance Sheet, the Profit & Loss Account & the cash flow

statement complies with the mandatory Accounting Standards referred in Section 211 (3C) of the Companies Act, 1956, and

5. On the basis of written representations received from the directors as at 31st

March 2010 and taken on record by the board of directors, we report that none of the directors is disqualified as at 31st March 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the companies act,1956.




In our opinion, and to the best of our information and according to the explanations given to us, the said accounts, together with and subject to notes annexed thereto, give the information required, and give a true and fair view:

a. In the case of Balance Sheet of the state of affairs of the company as at 31st March 2010; and

b. In the case of the Profit & Loss Account, of the expenditure incurred during

the Period ended on that date

c. In case of the Cash Flow Statement, of the cash flows for the year ended on that date

PLACE : BANGALORE FOR GIRISH MURTHY & KUMAR Chartered Accountant DATE : 10th May, 2010

(A.V SATISH KUMAR) Partner.




ANNEXURE TO THE AUDITORS’ REPORT As required by the Companies (Auditors report) order, 2003 issued by the company law board, and on the basis of such checks as considered appropriate and according to the information and explanations given to us during the course of our audit, we report that: -

i) The company has maintained proper records showing full particulars including

quantitative details and situation of Fixed Assets. During the year, the management has physically verified the fixed assets and there were no discrepancies. No substantial parts of the Fixed Assets have been disposed during the year.

ii) The company has not commenced its operations and therefore had no stocks of finished goods, stores, spare parts and raw materials during/ at the end of the year.

iii) The company has taken loans from companies listed in the register maintained under section 301 of the Companies Act, 1956. However the same is not prejudicial to the interest of the company.

iv) The company has not granted any loans, secured or unsecured to the companies, firms or other parties listed in the register maintained under section 301 of the companies act 1956, and/or to the companies under the same management as defined under section 370 (I-B) of the companies act, 1956.

v) The company has not given any loans or advances in the nature of loans during the year

vi) The company is yet to commence its operations and has not purchased raw materials or components during the year. In our opinion, for the purchase of assets there is an adequate internal control procedure commensurate with the size of the company and the nature of its business. Further we have not noticed any evidence of persisting failures to correct major weakness in internal control.

vii) The company has not entered into any contract falling under Section 297 and

therefore no particulars of transaction have been entered in the Register in pursuance of section 301 of the act.

viii) The company has not accepted deposits from the public during the year to which

the provisions of section 58A and 58AA of the companies Act, 1956 and the rules framed there under are applicable.

ix) In our opinion, the company's present Internal Audit system is commensurate with the size and nature of its business.




x) The central government has not prescribed the maintenance of cost records

by the companies under section 209(i)(d) of the companies act, 1956. xi) The Company is regular in payment of, income tax, wealth tax & Provident

Fund. We are informed by the company that the Provisions of the Employees State Insurance Scheme, Investor education and protection fund, sales tax, excise, customs and cess are not applicable to the Company.

xii) There are no undisputed amounts payable in respect of income tax, wealth

tax, and Provident fund as at 31st march 2010, which are outstanding for a period of more the than six months from the date they become payable.

xiii) The company has not granted any loans/advances on the basis of security by way of shares, debenture etc. As such no records and documents have been maintained.

xiv) The Company is not having any accumulated losses nor the company has

incurred any cash loss for this year or the preceding financial year xv) The company is not dealing or trading in shares, debentures and other

investments and as such no records have been maintained. xvi) We have been informed by the company that it has not given any guarantee

for any loans taken by the others from banks and financial institutions. xvii) In our opinion, and on the basis of our examination and according to the

information and explanations given to us, on an overall examination of the balance sheet of the Company, we report that during the year, prima facie, the Company has not used funds raised on short- term basis for long-term investment. .

xviii) No Preferential allotment of shares is made by the company to parties and

companies covered in the registers maintained under section 301 of the act. xix) The company has not issued any debentures and therefore no securities have

been created. xx) We have not noticed any fraud on or by the company during the year. xxi) The company is not covered under special statutory provisions applicable to

the chit fund, Nidhi or mutual benefit societies.




xxii) According to the information and explanations given to us and based on such

examination, we are of the opinion that other provisions of the Companies (Auditors' report Order) 2003 are not applicable for the year covered under this report.

PLACE : BANGALORE FOR GIRISH MURTHY & KUMAR Chartered Accountant DATE : 10th May, 2010

(A.V SATISH KUMAR) Partner.

Balance Sheet as at 31st March 2010

(Amount in Rupees)

Sch.

Ref

I. Sources of Funds:

1. Shareholders’ Funds

a) Share Capital 1 4,999,840 1,021,840

b) Share application Money 33,350,000 35,804,147

b) Reserves & Surpluses 2 41,692,000 -

Total 80,041,840 36,825,987

II. Application of Funds:

1. Fixed Assets 3

a) Gross Block 25,118,437 14,342,236

b) Less : Depreciation 57,188 32,618

c) Net Block 25,061,249 14,309,618

d) Capital Work in Progress (including

capital advances) 4 44,500,175 14,296,151

2. Current Assets, Loans and Advances

a) Cash and Bank Balances 5 11,861,561 638,366

b) Other current Assets 6 69,541 -

c) Loans and Advances 7 263,639 7,893,734

12,194,741 8,532,100

Less : Current Liabilities and Provisions

a) Liabilities 1,555,992 82,699

b) Provisions 8 352,732 264,183

1,908,724 346,882

Net Current Assets 10,286,017 8,185,218

3. Miscellaneous Expenses

Preliminary Expenses - 35,000

4. P& L Account Debit balance 9 194,400 -

Total 80,041,840 36,825,987

Statement on Significant Accounting policies and Notes

to the Accounts

10

-

The Schedules referred to above form an integral part of the Balance Sheet - -

This is the Balance Sheet referred to

in our report of even date. For and on behalf of the Board

A V Satish Kumar B V N Rao Raaj Kumar

Partner Director Director

For and on behalf of

Girish Murthy & kumar


Membership Number:26526

Place: Bangalore Place: Bangalore

Date: 10th May 2010 Date: 10th May 2010

SJK Powergen Limited

31st march 2010 31st March 2009


Profit and Loss Account for the period ended 31st March 2010

(Amount in Rupees)

Particulars

Schedule

For the period ending

31st March 2010

A

s

o

n

I. Income

Sales -

Other Income -

-

II. Expenditure

Generation Expenses -

Administration expenses 9 194,400

Interest and Finance Charges -

Depreciation -

194,400

III. Profit Before Taxation (194,400)

Provision for Taxation

- Current

- Deferred

Fringe Benefit Tax

Wealth tax -

IV. Profit After Taxation as per audited statement of accounts (194,400)

Surplus brought froward from Previous year -

-

V. Available for Appropriation (194,400)

-

VI. Available surplus carried to Balance Sheet (194,400)

Earning per share(Per Equity share of Rs.10 Each)

Earning per Share -Basic (0.58)

This is the profit & loss Account referred to -

in our report of even date. For and on behalf of the Board



for and on behalf of






The Schedules referred to above form an integral part of the Profit and Loss Account

Schedules forming part of the Balance Sheet as at 31st March'10

(Amount in Rupees)

Schedule 1: Share capital

31st March 2010

A

s

As on 31st March 09

a. Authorised Capital 5,000,000 5,000,000

(50,0000 Shares of Rs.10/- each)

5,000,000 5,000,000

-

b. Issued, subscribed and paid up 4,999,840 1,021,840

(4,99,984 Shares of Rs.10/- each)

(out of the above 4,99,984 equity shares 3,49,984 shares of Rs. 10each

are held by GMR Energy Limited holding company and its nominees)

c. Share application money 33,350,000 35,804,147

Total 38,349,840 36,825,987

(Amount in Rupees)

Schedule 2: Reserves & Surpluses

31st March 2010

A

s

As on 31st March 09

Securities Premium 41,692,000 -

Total 41,692,000 -

(Amount in Rupees)

Schedule 5: Cash and Bank Balances 31st March 2010 As on 31st March 09

Cash on Hand 19,000 81,751

Balances with scheduled banks

- On Current accounts 6,911,569 556,615

- On Deposit accounts 4,930,992 -

Total 11,861,561 638,366

(Amount in Rupees)

Schedule 6: Other Current Assets 31st March 2010 As on 31st March 09

Interest Accured but not due 69,541 -

Total 69,541 -

(Amount in Rupees)

Schedule 7: Loans & Advances

31st March 2010 As on 31st March 09

(Unsecured and considered good,unless otherwise stated)

Loans to Employees - -

Advances recoverable in cash or in kind or for value to be received

- Considered good 263,639 7,893,734

Advance FBT - -

Total 263,639 7,893,734


Schedules forming part of the Balance Sheet as at 31st March'10 (Amount in Rupees)

Schedule 8: Current Liabilities and Provisions

31st March 2010 As on 31st March 09

a. Current Liabilities

Sundry creditors:

I. Dues to Micro and small scale industrial undertakings - -

II. Dues to other than Micro and small scale industrial undertakings 767,591 10,000

Book Overdraft-Bank Dr balance - -

Other liabilities 788,401 72,699

Total 1,555,992 82,699

b. Provisions

Provisions-Gratuity 58,076

Provision for leave encashment 128,696 -

Provision for Salaries 222,900

Provisions-Spr anntn 10,560 -

Provision for Rent - 41,283

Provisions-LTA 155,400 -

Total 352,732 264,183


Schedules forming part of the porfit and Loss Account for the year ended 31st March 10 Amount in Rupees

Schedule 9: Administrative Expenses 31st March 2010

F

31st March 2009

Interest on FBT 8,751 -

Audit Fee 45,075 -

Preliminary expenses written off 35,000 -

Rates & Taxes 2,812 -

Advertisement 102,262 -

Business promotion 500 -

Total 194,400 -

** Refer Note no.2 of schedule 10, with regard to transfer of expenditure during the construction period to Profit and Loss Account


Schedules forming part of the Balance Sheet as at 31st March 2010

Schedule 3 : Fixed Assets

(Amount in Rupees)

As on 1st April

2009 Additions

Deletions

for the

year

As at 31st

March 2010

As on 1st April

2009

During the year Deletion

during the

year

As at 31st

March 2010

As at 31st

March 2010

As on 31st March

2009

Land 14,088,044 10,738,107 - 24,826,151 - - - - 24,826,151 14,088,044

Computers 102,250 76,000 3,244 175,006 27,809 19,641 908 46,542 128,464 74,441

Furniture & Fixtures 151,942 - 34,662 117,280 4,809 7,424 1,587 10,646 106,634 147,133

Total 14,342,236 10,814,107 37,906 25,118,437 32,618 27,065 2,495 57,188 25,061,249 14,309,618

Net Block


Description Gross Block Depreciation

Schedules forming part of the Balance Sheet as at 31st March'10

Schedule 4: Capital Work in progress As at 01st April 2009 Incurred during the Year Capitalized/Adjusted Transferred to P&L account As on 31st March 09

(a) (b) (c ) (d) (a+b+c-d)

A) Asset under Constrution - - - - -

B) Expenses during construction period

Technical Consultancy Fee - 4,144,424 - - 4,144,424

Salaries, allowances and benefits to employees 2,872,565 3,515,880 - - 6,388,445

Contribution to provident fund and others - 143,356 - - 143,356

Staff welfare expenses 30,755 - - 30,755

Rent 482,000 362,355 - - 844,355

Rates and Taxes 45,552 1,086,781 - 2,812 1,129,521

Repairs & Maintenance - 33,761 - - 33,761

Consultancy & Professional Charges 5,344,054 2,426,635 - - 7,770,689

Remunreation to Auditors - - - -

Audit fees 17,631 - - 17,631 -

Others - - - - -

Out of pocket expenses - - - - -

Travelling and conveyance 3,032,287 904,747 - - 3,937,034

Comunication Expenses 11,496 87,520 - - 99,016

Fringe benefit tax 52,315 - - - 52,315

Interest on FBT - - - - -

Depreciation 32,618 24,570 - - 57,188

Donations - 525 - - 525

Office Maintanance 320,891 559,173 - - 880,064

Guest House Maintainance 48,982 35,124 - - 84,106

Printing & Stationery 124,123 49,971 - - 174,094

Membership & Subscription 68,711 2,493 - - 71,204

Advertisement Expenses 327,862 - - 39,214 288,648

Bank/ other finance charges 14,864 8,508 - - 23,372

Meetings & Seminars - 15,916 - - 15,916

Placement & recruitment - 72,468 - - 72,468

Business Promotion - - - - -

Insurance - 3,993 - - 3,993

Miscellaneous Expenses

Hire charges - 75,237 - - 75,237

Books & Periodicals - 1,007 - - 1,007

Other Adminstrative - Miscellaneous Expenses 906,780 920,883 - - 1,827,663

i) 13,702,731 14,506,085 - 59,657 28,149,160

Less: Other Income

Tender fees received and FD intt. Accrued - (169,545) - - (169,545)

ii) - (169,545) - - (169,545)

i)-ii) 13,702,731 14,336,540 - 59,657 27,979,615

C) Capital advances 593,420 15,927,140 - - 16,520,560

Grand Total (A) +(B)+( C) 14,296,151 30,263,680 - 59,657 44,500,175


SJK Powergen Limited Schedule – 10 Statement on Significant Accounting Policies and Notes to the Accounts

1. SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Preparation of Financial Statements:

The financial statements are prepared under the historical cost convention on the accrual basis, in accordance with the Indian Generally Accepted Accounting Principles (“GAAP”) and mandatory accounting standards as specified in the Companies (Accounting Standard) Rules, 2006, the provisions of the Companies Act, 1956. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. Management evaluates all recently issued or revised accounting standards on an ongoing basis.

2. Use of Estimates:

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets, liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

3. Revenue Recognition: i) Revenue from sale of energy is recognized on accrual basis in accordance with the provisions

of the Power Purchase Agreement {PPA} after commercial operation date.

ii) Interest is recognized using the time proportion method based on rates implicit in the transaction. Dividend income is accounted for in the year in which the right to receive the same is established.

4. Fixed Assets and Capital Work-in-progress:

The gross block of fixed assets is stated at cost of acquisition or construction, including any cost attributable to bringing the assets to their working condition for their intended use.

All Project related expenditure viz, civil works, machinery under erection, construction and erection materials, pre-operative expenditure incidental / attributable to construction of project, borrowing cost incurred prior to the date of commercial operation and trial run expenditure are shown under Capital Work-in-Progress. These expenses are net of recoveries and income (net of tax) from surplus funds arising out of project specific borrowings.

5. Depreciation:

Depreciation is provided on a pro-rata basis on Straight Line Method at rates specified in Schedule XIV to the Companies Act, 1956.Except for the Assets individually costing less than Rs.5 000/- is depreciated fully in the year of acquisition.

6. Borrowing cost:

Borrowing costs that are directly attributable to the acquisition, construction or production of an asset are capitalized as part of the cost of that asset till the date of capitalization of qualifying asset. Other borrowing costs are recognized as expenses in the period in which they are incurred.

SJK Powergen Limited Schedule – 10

7. Investments: Long term Investments are stated at cost. Provision for diminution in value of long term investments is made only if such a decline is other than temporary in the opinion of the management.Current Investments are stated at cost or market value whichever is lower.

8. Foreign Currency Transactions:

Transactions in foreign currency are recorded at the exchange rate prevailing at the dates of the transaction. Monetary items are translated at year-end foreign exchange rates. Resultant exchange difference, arising on payment or conversion of liabilities / assets, is recognized as income or expense, in the year in which they arise.

9. Employee Benefits: Defined Contribution Plan The Company's defined contribution plans are Employees' Provident Fund {under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952} Pension fund and Superannuation Fund. Hence, the Company has no further obligation beyond making the contributions. The Company's contributions to Provident Fund and Pension fund are made at pre-determined rates and are charged to the Books of Accounts.

Defined Benefit Plan

The Company's liability towards Gratuity is provided as per Actuarial Valuation Certificate obtained from an Actuary which is determined using Projected Unit Credit Method. Actuarial gains or losses are recognized immediately in the profit and loss account. Other Long Term Employee Benefits

Long term compensated absences for Leave Encashment are provided as per Actuarial Valuation Certificate obtained from an Actuary which is determined using Projected Unit Credit Method. Actuarial gains or losses are recognized immediately in the profit and loss account.

10. Earnings per share:

The basic earnings per share are computed by dividing the net profit after tax for the period by the weighted average number of equity shares outstanding during the period. Diluted earnings per share, if any are computed using the weighted average number of equity shares and dilutive potential equity share outstanding during the period except when the results would be anti-dilutive.

11. Taxes on Income: Tax expense comprises both Current tax and deferred tax at the applicable enacted or substantively enacted rates. Current tax represents the amount of Income tax payable in respect of the taxable income for the reporting period. Deferred tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.


12. Impairment:

At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset’s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognized immediately as income in the profit and loss account.

13. Contingent Liabilities:

Contingent liabilities, if any, are disclosed by way of Notes on accounts. Provision is made in the Accounts in respect of those contingencies which are likely to materialize into liabilities after the year end, till the approval of accounts by the Board of Directors and which have material effect on the position stated in Balance sheet.

II. Notes to the Accounts

1. Nature of Business

SJK Powergen Limited is a Special Purpose Vehicle (SPV) acquired by GMR Energy Limited, the holding company, to develop and operate 1320 MW coal based thermal power project in Lalpur Village, Shahdol District, Madhya Pradesh state. The Company is in the process of setting up of the project.

2. The Company hitherto was grouping and disclosing all the expenditure during construction stage pending allocation under “Expenditure during construction period, Pending allocation(Net)”. During the year the Company for the first time has drawn the profit and loss account and accordingly out of the Total “Expenditure During Construction Period Pending Allocation (Net) as on 31st March, 2009 Rs 1,37,02,731/-an amount of Rs.1,36,43,074/- directly attributable to the cost of Construction has been transferred to “Capital Work in Progress” and the remaining amount of Rs.59,656/- has been charged to the profit and loss account under the relevant heads of account (Included in Schedule 8), the details of which are given below :

3. Capital Commitments:

Estimated amount of contracts remaining to be executed on capital account not provided for, net of advances is Rs.2,74,40,982/-

Particulars

Expense till 31st March 2009

Advertisement 39,214

Audit Fees 17,631

Rates & Taxes 2,812

Total 59,657


4. Employee benefits

The disclosures as required as per the revised AS 15 are as under:

The Company has with effect from 1st April 2008 adopted Accounting Standard 15 Employee Benefits {revised 2005} issued by the Institute of Chartered Accountants of India [the 'revised AS 15']. The company has determined the liability for gratuity and long term compensated absences in accordance with revised AS 15. Disclosures as envisaged in revised AS 15 in respect of Gratuity and leave encashment are given below: Gratuity and Leave Encashment: a) Defined Benefit Plan - As per Actuarial Valuation as at 31st March 2010 {Funded}

(Amount in Rupees)

Particulars Year Ended 31st Mar’10

Projected benefits obligation at the beginning of the period

0

Current Service Cost 58,076

Interest Cost 0

Actuarial loss/(gain) 0

Benefits Paid/Transfer to other companies 0

Projected benefit obligation at the end of the period 58,076

Amounts recognized in the balance sheet

Projected benefit obligation at the end of the period 58,076

Fair value of plan assets at the end of the period 0

Funded status of the plans-(asset)/liability 0

(Assets)/Liability recognized in the balance sheet 58,076

Cost for the period

Current Service Cost 58,076

Interest cost 0

Expected return on plan assets 0

Net actuarial (gain)/loss recognized in the period 0

Net Cost

58,076

Assumption

Discount Rate 8.00%

Estimated rate of return on plan assets 8.00%

Expected rate of salary increase Attrition rate Maximum retirement Age

6.00% 5.00%

60

b) Liability towards Leave Encashment based on Actuarial valuation amounts to Rs.1,28,696

as at 31st Mar’10 .


c) Liability towards Leave Travel Allowance (LTA) based on Actuarial valuation amounts to Rs.1,55,399.54 as at 31st Mar’10.

5. Details of Auditors Remuneration:

Amount in Rupees


i) Statutory Audit Fees 22,060

ii) Tax Audit Fees -

iii) Certification / Consultation Fees 5515

6. Related Party transactions a) Names of related Parties and Description of relationship :

SJK Powergen Limited - Related parties

(i) Enterprises that control the

Company

GMR Energy Limited (GEL) (Holding Company)

GMR Infrastructure Limited (GIL)

GMR Holdings Private Limited (GHPL)

(ii) Fellow Subsidiary

Companies

GMR Kamalanga Energy Limited

GMR Power Corporation Limited (GPCL)

Vemagiri Power Generation Limited (VPGL)

GMR Rajahmundry Energy Limited (GREL)

GMR (Badrinath) Hydro Power Generation Limited (GBHPL)

GMR Consulting Services Private Limited (GCSPL)

Himtal Hydropower Company Private Limited (HHCPL)

GMR Energy (Mauritius) Limited (GEML)

GMR Upper Karnali Hydropower Company Private Limited

(GUKCPL)

GMR Lion Energy Limited (GLEL)

GMR Mining and Energy Private Limited (GMEPL)

GMR Coastal Energy Private Limited (GMRCEPL)

GMR Bajoli Holi Hydropower Private Limited (GBHHPL)

GMR Energy (Cyprus) Limited (GECL)

GMR Energy (Netherlands) B. V. (GENBV)

GMR Londa Hydropower Private Limited (GLHPL)

Londa Hydro Power Private Limited (LHPL)

PT Barasentosa Lestari (PT BSL), Indonesia

PT Dwikarya Sejati Utama (PT DSU), Indonesia

PT Dutasarana Internusa (PT DSI),Indonesia

PT Unsoco, Indonesia (PTU)

Badrinath Hydro Power Generation Pvt. Ltd.(BHPL)

GMR Chhattisgarh Energy Private Limited (GCEPL)

EMCO Energy Limited

Lion Energy Tuas Pte Ltd, Singapore

SJK Powergen Limited Schedule – 10 (iii) Enterprises where significant

influence exists

(iv) Enterprises where key

management personnel and

their relative exercise

significant influence

(v) Key Management Personnel

b) Summary of transactions with the above related parties is as follows:

(Amount in Rupees)


Year Ended 31st Mar’09

iv) Shares application money received

a) Enterprises that Control the Company – GEL 3,33,50,000 -

vii) Equity Share capital

a) Enterprises that Control the Company – GEL 34,99,840- -

7. Operating Lease:

The Company has entered into certain cancelable operating lease agreements mainly for office premises and Guesthouse. The lease rentals charged during the year as pr the agreements are as follows:

(Amount in Rupees)

Particulars 31st Mar 2010

Lease rentals under cancellable lease 8,44,355 - Others

8. Earnings per Share (EPS)

(Amount in Rupees)

Particulars 31st March 2010

Nominal value of Equity Shares(Rs. Per share) 10

Total No. of Equity Shares outstanding at the beginning of the Period/Year 10,21,840

Total No. of Equity Shares outstanding at the end of the Period/Year 49,99,840

Weighted average No. of Equity shares for Basic earnings per Share 3,35,931

Loss as per Profit and loss Account (194,400)

Less: Dividend on Preference shares (including tax thereon) -

Profit/ (Loss) for Earning per share (1,94,400)

Earnings per Share (EPS) (0.58)

Note: Since, the Company has drawn Profit & Loss Account for the first time during the period, the EPS calculation for the year ended 31st March, 2009 is not given above.


9. Balances shown under Loans and Advances Creditors and Advances to suppliers are subject to confirmation and reconciliations.

10. There are no micro and small enterprises to which the company owes dues which are outstanding for more than 45 days as at March 31 2010. This information as required to be disclosed under the Micro Small and Medium Enterprises Development Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

11. Segment Reporting

The Company is engaged primarily in the business of setting and running of Power plant. As the basic nature of the activities is governed by the same set of risk and returns these have been grouped as a single business segment. Accordingly separate primary and secondary segment reporting disclosures as envisaged in Accounting Standard (AS-17) on Segmental Reporting issued by the ICAI are not applicable to the present activities of the Company.

12. Previous year figures have been regrouped, re-arranged and reclassified wherever necessary.

13. Cash flows for previous year ended 31st March 2009 have not been made, since cash-flow statement is prepared for the first time.

For Girish Murthy & Kumar For and on behalf of Board Chartered Accountants A V Satish Kumar BVN Rao Raaj Kumar Partner Director Director Membership No. 26526 Place: Bangalore Place: Bangalore Date: 10.05.2010 Date: 10.05.2010

Cash flow statement for the Period ended 31st March 2010

(Amount in Rupees)

For the period ended 31st March

2010

F

o

r A.

Loss Before Tax as per Profit & Loss Account (194,400)

Add: Preliminary expenses written off 35,000

Operating Profit Before Working Capital Changes (159,400)

Changes in Receivables and Loans and advances 7,560,555

Changes in Payables 1,561,842

Cash generated from Operations 8,962,997

Fringe Benefit Tax 52,315

Net Cash Flow from/ (used in) Operating Activities 8,910,682

B. CASH FLOW FROM/ (USED IN) INVESTING ACTIVITIES

Purchase of Fixed Assets (40,903,340)

(including capital work in progress and capital advances)

Net Cash from/ (used in) Investing Activities (40,903,340)

C. CASH FLOW FROM/(USED IN) FINANCING ACTIVITIES

Proceeds from issue of share capital 43,215,853

Net Cash from Financing Activities 43,215,853

Net increase in Cash and Cash Equivalents 11,223,195

Cash and Cash Equivalents at the beginning of the year 638,366

Cash and Cash Equivalents at the end of the year 11,861,561

Notes: (1)

1. The above cash flow statement has been prepared under the 'Indirect Method' as set out in the

Accounting Standard -3 on 'Cash Flow Statements' issued by the Institute of Chartered Accountants of India.

2. Cash flow for previous year ended 31st march 2009 have not been made, since cash -flow statement is prepared

for the first time.

This is the Cash Flow Statement referred to -

in our report of even date For and on behalf of the Board



for and on behalf of







Particulars

CASH FLOW FROM/(USED IN) OPERATING ACTIVITIES

Cash Flow Page 1

1 Registration Details

Registration No. U40109KA1998PLC052000 State Code : 08

Balance Sheet Date 31st March10

2 Capital Raised during the year (Amount in Rs. Thousands)

Public Issue Nil Rights Issue Nil

Bonus Issue Nil Private Placement Nil

3 Position of Mobilisation and Development of Funds ( Amount in Rs. Thousands)

Total Liabilities 80,042 Total assets 80,042

Sources of Funds

Paid Up Capital* 38,350 Reserves & Surplus 41,692

* Includes Share Application Money

Secured Loans - Unsecured Loans -

Application of Funds

Net Fixed Assets ** 69,561 Investments -

** Includes Capital Work in Progress

Net Current Assets 10,286 Misc. Expenditure

Accumulated Losses 194

4 Performance of company ( Amount in Rs. Thousands)

Gross Income - Total Expenditure 194

+ / - Profit / Loss Before Tax (194) + / - Profit / Loss After Tax (194)

Earning Per Share in Rs.(Basic & Diluted) (0.58) Dividend Rate % -

5 Generic Names of Three Principal Products / Services of Company (as per monetary terms)

Item Code No. : NA Product Description thermal Electric Power

For and on behalf of the Board

B V N Rao Raaj Kumar

Director Director

Place: Bangalore

Date: 10th May 2010


BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE

Documents

AUDITORS' REPORT... · SJK Powergen Limited Profit and Loss Account for the period ended 31st March 2010 (Amount in Rupees) Particulars Schedule For the period ending 31st March 2010