REG - KSK Power Ventur PLC - Audited Results for the year ended 31 March 2015 <Origin Href="QuoteRef">KSK.L</Origin> - Part 2
25/07/2015 09:41
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proportion of the
actual shareholding as
at the reporting date.
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
for the year ended 31
March 2015
(All amount in
thousands of US $,
unless otherwise
stated)
Attributable to owners of the Company Non - controlling interests Total equity
Issued capital Share premium Share application money Foreign currency translation reserve Revaluation reserve Capital redemption reserve Other reserves Retained earnings Total
As at 1 April 2014 289 287,191 18,000 (113,933) 2,614 5,461 143,615 69,254 412,491 169,782 582,273
Refund of share - - (1,502) - - - - - (1,502) - (1,502)
application money
Change in non - - - - - - 4,898 - 4,898 62,114 67,012
-controlling interests
without change in
control
Transfer of economic - - - - - - 7,038 7,038 (7,038) -
interest to non
-controlling interests1
Equity-settled share - - - - - - 112 - 112 - 112
based payment
Transfer of profit to - - - - - 5,394 (5,394) - - -
capital redemption
reserve
Net depreciation - - - - (345) - - 345 - - -
transfer for property,
plant and equipment
Transaction with owners - - (1,502) - (345) 5,394 5,010 1,989 10,546 55,076 65,622
Loss for the year - - - - - - - (56,504) (56,504) (12,403) (68,907)
Other comprehensive
income
Items that will never
be reclassified to
income statement
Re-measurement of - - - - - - 94 - 94 - 94
defined benefit
liability
Income tax relating to - - - - - - 59 - 59 - 59
re-measurement of
defined benefit
liability
Items that are or may
be reclassified
subsequently to income
statement
Foreign currency - - - (15,498) - - - - (15,498) (8,637) (24,135)
translation differences
Available-for-sale
financial assets
- current period loss - - - - - - (2,004) - (2,004) (608) (2,612)
- reclassification to - - - - - - 693 - 693 - 693
profit or loss
Income tax relating to - - - - - - 341 - 341 164 505
available-for-sale
financial asset
Reclassification of - - - - (851) - (491) 851 (491) - (491)
reserves on deemed
disposal of interest in
Joint operation
Total comprehensive - - - (15,498) (851) - (1,308) (55,653) (73,310) (21,484) (94,794)
expenses for the year
Balance as at 31 March 289 287,191 16,498 (129,431) 1,418 10,855 147,317 15,590 349,727 203,374 553,101
2015
(See accompanying notes
to the Consolidated and
Company financial
statements)
1 The group entities
have arrangements of
sharing of profits with
its non-controlling
shareholders, through
which the non
controlling
shareholders are
entitled to a dividend
of 0.01% of the face
value of the equity
share capital held and
the same is also
reflected in the
Consolidated income
statement. However, the
non controlling
interest disclosed in
the Statement of
changes in equity is
calculated in the
proportion of the
actual shareholding as
at the reporting date.
1,418
10,855
147,317
15,590
349,727
203,374
553,101
(See accompanying notes to the Consolidated and Company financial statements)
1 The group entities have arrangements of sharing of profits with its non-controlling shareholders, through which the non
controlling shareholders are entitled to a dividend of 0.01% of the face value of the equity share capital held and the
same is also reflected in the Consolidated income statement. However, the non controlling interest disclosed in the
Statement of changes in equity is calculated in the proportion of the actual shareholding as at the reporting date.
COMPANY STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2015
(All amount in thousands of US $, unless otherwise stated)
Issued capital Share premium Share application money Foreign currency translation reserve Other reserve Accumulated deficit Totalequity
As at 1 April 2013 263 253,890 - 6,420 - (10,049) 250,524
Issue of shares 26 33,301 - - - - 33,327
Receipt of share application money - - 18,000 - - - 18,000
Equity-settled share based payment - - - - 10 - 10
Transaction with owners 26 33,301 18,000 - 10 - 51,337
Loss for the year - - - - - (4,200) (4,200)
Other comprehensive income
Foreign currency translation differences - - - 6,160 - - 6,160
Total comprehensive income / (loss) for the year - - - 6,160 - (4,200) 1,960
Balance as at 31 March 2014 289 287,191 18,000 12,580 10 (14,249) 303,821
As at 1 April 2014 289 287,191 18,000 12,580 10 (14,249) 303,821
Refund of share application money - - (1,502) - - - (1,502)
Equity-settled share based payment - - - - 112 112
Transaction with owners - - (1,502) - 112 - (1,390)
Loss for the year - - - - - (4,678) (4,678)
Other comprehensive income
Foreign currency translation differences - - - (8,056) - - (8,056)
Total comprehensive loss for the year - - - (8,056) - (4,678) (12,734)
Balance as at 31 March 2015 289 287,191 16,498 4,524 122 (18,927) 289,697
(See accompanying notes to Consolidated and Company financial statements)
CONSOLIDATED AND COMPANY STATEMENT OF CASH FLOWS
for the year ended 31 March
(All amount in thousands of US $, unless otherwise stated)
Consolidated Company
2015 2014 2015 2014
Cash inflow / (outflow) from operating activities
Loss before tax (160,111) (72,123) (4,678) (4,200)
Adjustment
Depreciation and amortisation 58,733 43,926 - 1
Finance cost 218,693 154,829 3,857 3,242
Finance income (19,135) (35,819) - (1,554)
Provision and impairment of trade receivable, PPE and other receivable 31,070 9,068 - 335
Net loss on business combination 2,001 - - -
Loss / (profit) on sale of fixed assets, net 142 (352) - -
Others (7,857) 869 112 10
Change in
Trade receivables and unbilled revenue 1,687 (50,712) - -
Inventories (7,419) 1,658 - -
Other assets (7,391) (53,024) 31 (4,851)
Trade payables and other liabilities (17,202) 53,819 53 84
Provisions and employee benefit liability 204 (566) - -
Cash generated from / (used in) operating activities 93,415 51,573 (625) (6,933)
Taxes paid, net (3,945) (5,364) - -
Net cash provided by / (used in) operating activities 89,470 46,209 (625) (6,933)
Cash inflow / (outflow) from investing activities
Movement in restricted cash, net (19,137) 123,310 - -
Purchase of property, plant and equipment and other non-current assets (222,891) (199,997) - -
Proceeds from sale of property, plant and equipment 929 1,709 - -
Purchase of financial assets (27,770) (23,906) (46,353) (47,652)
Proceeds from sale of financial assets 24,225 59,675 - -
Net cash flow on business combination (5,784) - - -
Dividend received 95 120 - -
Interest income received 16,738 31,350 - -
Net cash used in investing activities (233,595) (7,739) (46,353) (47,652)
Cash inflow / (outflow) from financing activities
Proceeds from borrowings 995,211 1,252,455 62,876 7,663
Repayment of borrowings (533,352) (993,151) (10,490) -
Finance costs paid (398,627) (316,109) (3,103) (2,972)
Payment of derivative liability (4,552) (4,519) - -
Advance received against investment 14,939 - - -
Net proceeds from issue of shares and share application money in subsidiary to non-controlling interest 63,371 2,303 - -
Net proceeds / repayment from issue of shares and share application money (1,502) 51,327 (1,502) 51,327
Net cash flow provided by / (used in) financing activities 135,488 (7,694) 47,781 56,018
Effect of exchange rate changes (6,564) (18,676) 89 (1,547)
Net increase / (decrease) in cash and cash equivalents (15,201) 12,100 892 (114)
Cash and cash equivalents at the beginning of the year 55,934 43,834 173 287
Cash and cash equivalents at the end of the year (refer note 5) 40,733 55,934 1,065 173
NOTES TO CONSOLIDATED AND COMPANY FINANCIAL STATEMENTS
for the year ended 31 March 2015
(All amount in thousands of US $, unless otherwise stated)
1. Corporate information
1.1. General information
KSK Power Ventur plc ('the Company' or 'KPVP' or 'KSK' or 'Parent'), a limited liability corporation, is the Group's Parent
Company and is incorporated and domiciled in the Isle of Man. The address of the Company's Registered Office, which is also
principal place of business, is Fort Anne, Douglas, Isle of Man, IM1 5PD. The Company's equity shares are listed on the
Standard List on the official list of the London Stock Exchange.
1.2. Nature of operations
KSK Power Ventur plc, its subsidiaries and joint operations (collectively referred to as 'the Group') are primarily engaged
in the development, ownership, operation and maintenance of private sector power projects with multiple industrial
consumers and utilities in India.
KSK focused its strategy on the private sector power development market, undertaking entire gamut of development,
investment, construction (for its own use), operation and maintenance of power plant with supplies initially to heavy
industrials operating in India and now branching out to cater to the needs of utilities and others in the wider Indian
power sector.
The principal activities of the Group are described in note 9.
1.3. Statement of compliance responsibility statement
The Consolidated and Company financial statements contained in this document have been prepared in accordance with
International Financial Reporting Standard and its interpretations as adopted by the European Union (EU) ('IFRS') and the
provisions of the Isle of Man, Companies Act 1931-2004 applicable to companies reporting under IFRS.
The financial statements were authorised for issue by the Board of Directors on 20 July 2015.
1.4. Financial period
The Consolidated and Company financial statements cover the period from 1 April 2014 to 31 March 2015, with comparative
figures from 1 April 2013 to 31 March 2014.
1.5. Basis of preparation
These Consolidated financial statements have been prepared on the historical cost convention and on an accrual basis,
except for the following:
· Derivative financial instruments that are measured at fair value;
· Financial instruments that are designated as being at fair value through profit or loss account upon initial
recognition are measured at fair value;
· Available-for-sale financial assets that are measured at fair value; and
· Net employee defined benefit (asset) / liability that are measured at fair value.
The financial statements of the Group and the Company have been presented in United States Dollars ('US $'), which is the
presentation currency of the Company. All amounts have been presented in thousands, unless specified otherwise.
Balances represent consolidated amounts for the Group, unless otherwise stated. The Company's financial statement
represents separate financial statement of KPVP.
Going Concern: The financial statements have been prepared on the going concern basis which assumes the Group and the
Company will have sufficient funds to continue its operational existence for the foreseeable future, covering at least
twelve months from the date of signing these financial statements. The Group requires funds for both short term operational
needs as well as for long term investment programmes, mainly in construction projects for its power plants.
As at 31 March 2015, the Group had net current liabilities of US $ 442,526 and is depending on a continuation of both short
term and long term debt financing facilities. Such financing is subject to covenant and amortisation conditions. The Group
also has significant capital commitments at the year-end of which a portion is due to be met during the year to 31 March
2016, primarily in respect of on-going plant construction projects at KSK Mahanadi. The Group is also involved in a number
of on-going legal and claim matters.
The Group continues to generate cash flows from current operations which are further expected to increase with the full
load operation of two units of KSK Mahanadi plant and better plant load factor in Sai Wardha. These two factors are key
assumptions with regard to management's forecasts and expectations. It is forecast that the transmission corridor
constraint on KSK Mahanadi for the operation and sale of power from unit 2 and long term PPA arrangement for Sai Wardha
will be in place shortly. Should there be further delays in these matters this may impact on the ability of the Group to
generate the cash flows for current financing proposals being considered, described below.
In addition, a number of the facilities that are due to expire at 31 March 2016 are in the process of being extended and
have a rollover clause in a number of cases, and the Group may refinance and/or restructure certain short term borrowings
into long borrowings and will also consider alternative sources of financing, where applicable. The Directors are confident
that facilities will remain available to the Group based on current trading, covenant compliance and on going discussions
with the Groups primary lending consortium regarding future facilities and arrangements in respect of current borrowings.
The Group currently had significant undrawn borrowing facilities, subject to certain conditions, amounting to approximately
US $ 710,417 to meet its long term investment programmes. However, the Group is currently in discussions with stakeholders
regarding the terms of such existing drawn and undrawn financial commitments in order to match facilities to the current
development and financing plans for KSK Mahanadi. These proposals require the regulatory consent of the Reserve Bank of
India. Discussions with all stakeholders regarding such arrangements have been positive to date and the Groups lenders are
supportive of proposed arrangements. Nonetheless the Group monitors the situation on an on-going basis and plans
alternative arrangements where necessary. The outcome of these discussions may impact on the timing of the strategic
development of this plant.
As a consequence, the Directors have a reasonable expectation that the Company and Group are well placed to manage their
business risks and continue in operational existence for the foreseeable future. Accordingly, the Directors continue to
adopt the going concern basis of accounting when preparing these financial statements.
2. Changes in accounting policy and disclosure
The accounting policies adopted are consistent with those of the previous financial year except for the adoption of new
standards as of 1 April 2014, noted below:
The Group has adopted the following new standards and amendments to standards, including any consequential amendments to
other standards, with a date of initial application of 1 April 2014.
· IFRS 10: Consolidated financial statements
· IFRS 11: Joint arrangements
· IFRS 12: Disclosure of interest in other entities
· Recoverable amount disclosure for non-financial assets (Amendments to IAS 36)
· Investment entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
· Offsetting financial assets and financial liabilities - Amendments to IAS 32
· Novation of derivatives and continuation of hedge accounting - Amendments to IAS 39
The nature and the effect of the changes are further explained below:
IFRS 10: Consolidated financial statements
IFRS 10 establishes the principal for the preparation and presentation of consolidated financial statements with a new
definition of control. The investor controls an investee when it is exposed to, or has rights to variable returns from its
involvement with the investee and has ability to affect those returns through its power over the investee. This definition
replaces the pervious guidance on control and consolidation under IAS 27 (Separate Financial Statements) and SIC 12
(Consolidation-Special Purpose Entities). IFRS 10 does not have any impact on the financial statements of the Group.
IFRS 11: Joint arrangements
IFRS 11 (Joint Arrangements) replaced IAS 31 (Interest in Joint Ventures) and requires investments in joint arrangements
classified as either joint ventures or joint operations based on the rights and obligations of the parties to the
arrangement. Under this standard, the Group has assessed its joint arrangements in order to identify those which require to
be classified as joint ventures rather than joint operations. Joint operations arise where the venturers are deemed to have
joint control and have rights to the assets and obligations for the liabilities of the arrangement as opposed to having
rights to the net assets of the arrangements. Accordingly, a joint operator will recognise its share of the operation's
assets, liabilities, revenues and expenses in the consolidated financial statements rather than its net share of the result
of the venture. IFRS 11 does not have any impact on the financial statements of the Group.
IFRS 12: Disclosure of interest in other entities
IFRS 12 applies to entities that have an interest in a subsidiary, a joint arrangement, an associate or unconsolidated
structured entities. IFRS 12 requires an entity to disclose information that enables users of financial statements to
evaluate the nature and risk associated with the interest in other entities. These disclosures are set out within the
relevant notes to the financial statements.
Recoverable amount disclosure for non-financial assets (Amendments to IAS 36)
The amendment requires the disclosure of the recoverable amounts for the assets or Cash Generating Unit (CGU) for which
impairment loss has been recognised or reversed during the period. The amendment also expands and requires the disclosure
when an asset's or CGUs recoverable amount is determined on the basis of fair value less cost of disposal. Accordingly,
these disclosures are set out within the relevant notes to the financial statements.
Investment entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
The amendment provides an exception to the consolidation requirement for entities that meet the definition of an investment
entity under IFRS 10 Consolidated Financial Statements and must be applied retrospectively, subject to certain transition
relief. The exception to consolidation requires investment entities to account for subsidiaries at fair value through
profit or loss. These amendments have no impact on the Group, since none of the entities in the Group qualifies to be an
investment entity under IFRS 10.
Offsetting financial assets and financial liabilities - Amendments to IAS 32
The amendment clarifies the meaning of meaning of 'currently have a legally enforceable right to set-off' and 'simultaneous
realisation and settlement'. The amendment clarify that to result in offset of a financial asset and financial liability, a
right to set off must be available today rather than being contingent on a future event and must be exercisable by any of
the counterparties. It must be legally enforceable in the normal course of business. These amendments have no impact on the
Group, since none of the entities in the Group has any offsetting arrangements.
Novation of derivatives and continuation of hedge accounting - Amendments to IAS 39
The amendment provides relief from discontinuing hedge accounting when novation of a derivative designated as a hedging
instrument meets certain criteria and retrospective application is required. These amendments have no impact on the Group
as the Group has not novated its derivatives during the current or prior periods.
The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet
effective.
3. Acquisition and Dilution - change in non-controlling interest without change in control
a. Qualified Institutional Placement (QIP) by KSK Energy Ventures Limited ('KEVL')
During the year ended 31 March 2015, KEVL issued additional 40,404,040 equity shares of face value of Rs. 10 (US $ 0.16)
each at a premium of Rs. 89 (US $ 1.45) per share in the Indian domestic market by way of Qualified Institutional Placement
(QIP). The issue was fully subscribed and KEVL raised Rs. 3,941,773,675 (US $ 64,443) net of share issue expenses of Rs.
57,681,158 (US $ 943) (net of tax).
Pursuant to the above, the ownership interest of the Group in KEVL decreased from 74.94 percent to 67.61 percent resulting
in a 7.33 percent decrease in the Group's controlling interest in a subsidiary without loss of control. The aforesaid
transaction is accounted as an equity transaction, and no gain or loss is recognised in the Consolidated income statement.
The difference of US $ 6,763, between the fair value of the net consideration received (US $ 64,443) and the amount by
which the non-controlling interest are adjusted (US $ 57,680), is credited to 'Other reserve' within Consolidated statement
of changes in equity and attributed to the owners of the company.
b. Warrant issue by KSK Energy Ventures Limited
During the year ended 31 March 2015, the group has issued 80,808,080 warrants of face value of Rs. 10 (US $ 0.16) each in
KSK Energy Ventures Limited ('KEVL'), an Indian Listed subsidiary to KSK Power Holdings Limited ("KPHL") with an option to
apply for and be allotted equivalent number of equity shares of the face value of Rs 10 (US $ 0.16) each at a premium of
Rs. 89 (US $ 1.45) each on a preferential basis.
Pursuant to above, KPHL acquired 9,214,700 shares of KSK Energy Ventures Limited ('KEVL') resulting in increase of the
ownership interest of the Group in KEVL from 67.61 percent to 68.30 percent resulting in a 0.69 percent additional interest
in subsidiary. The aforesaid transaction is accounted as an equity transaction, and accordingly no gain or loss is
recognised in the consolidated income statement. An amount of US $ 1,057 by which the non-controlling interest is adjusted
debited to 'other reserve' within consolidated statement of changes in equity and attributed to the owners of the Company
c. Acquisition of VS Lignite Power Private Limited
During the year ended 31 March 2015, the Group has issued additional 60,000,000 equity shares in VS Lignite Power Private
Limited ("VSLPPL") to KSK Electricity Financing India Private Limited (KEFIPL) at face value of Rs 10 (US $ 0.16) each.
Pursuant to the above, the ownership interest of the Group in VSLPPL increased from 74 percent to 83.75 percent resulting
in a 9.75 percent additional interest in subsidiary. The aforesaid transaction is accounted as an equity transaction, and
no gain or loss is recognised in the Consolidated income statement. An amount of US $ 984 by which the non-controlling
interest is adjusted debited to 'Other reserve' within consolidated statement of changes in equity and attributed to the
owners of the company.
d. Dilution in KSK Mahanadi Power Company Limited
During the year ended 31 March 2015, the Group has issued additional 536,600,000 equity shares in KSK Mahanadi Power
Company Limited ("KMPCL") to KSK Energy Ventures Limited ("KEVL") and Sai Regency Power Corporation Private Limited
("SRPCPL") at a face value of Rs 10 (US $ 0.16) at par.
Pursuant to above, the ownership interest of the Group in KMPCL decreased by 0.59 percent in a subsidiary without loss of
control. The aforesaid transaction is accounted as an equity transaction, and no gain or loss is recognised in the
Consolidated income statement. An amount of US $ 141 by which the non-controlling interest is adjusted debited to 'other
reserve' within consolidated statement of changes in equity and attributed to the owners of the company.
e. Dilution in KSK Dibbin Hydro Power Private Limited
During the year ended 31 March 2015, the Group has issued additional 15,280,000 equity shares in KSK Dibbin Hydro Power
Private Limited ("KDHPPL") to North Eastern Electric Power Corporation Limited (NEEPCO) at face value of Rs 10 (US $ 0.16)
each.
Pursuant to above, the ownership interest of the Group in KDHPPL decreased from 100 percent to 81.01 percent resulting in a
18.99 percent decrease in Group's controlling interest in a subsidiary without loss of control. The aforesaid transaction
is accounted as an equity transaction, and no gain or loss is recognised in the consolidated income statement. The
difference of US $ 257 between the fair value of the net consideration received (US $ 2,498) and the amount by which the
non-controlling interest are adjusted (US $ 2,241), is credited to 'Other reserve' within Consolidated statement of changes
in equity and attributed to the owners of the company.
4. Investments and other financial assets
Consolidated Company
2015 2014 2015 2014
Current
Financial assets at fair value through profit or loss
- held-for-trading 2,589 130 - -
Loans and receivables 28,724 72,333 27 4
Loans to and receivables from Joint Venture partner - 777 - -
31,313 73,240 27 4
Non-current
Financial assets at fair value through profit or loss
- Derivative assets 49,702 50,196 - -
Available-for-sale investments 19,155 22,865 - -
Deposit with banks 8,102 10,953 - -
Loans and receivables 37,688 39,336 5,100 5,660
Loans to and receivables from Joint Venture partner 15,844 31,227 - -
Loans to and receivable from subsidiaries - - 171,676 133,873
Investment in subsidiaries - - 227,126 227,234
130,491 154,577 403,902 366,767
Total 161,804 227,817 403,929 366,771
Financial assets at fair value through profit or loss
The Group has invested into short-term mutual fund units and equity securities in various companies being quoted on Indian
stock market which are designated as held for trading. The fair value of the mutual fund units and equity securities are
determined by reference to published data.
Available-for-sale investment
The Group has investments in listed equity securities of various companies being quoted on the Indian and London stock
markets respectively. The fair value of the quoted equity shares are determined by reference to published data. The Group
also holds non-controlling interest (1%-25%) in unlisted entities which are in the business of power generation and allied
projects. The Group designated these quoted and unquoted equity shares as available-for-sale investment in accordance with
the documented investment strategy of the Group to manage and evaluate performance of the equity shares on fair value
basis. The fair value of unquoted ordinary shares has been estimated using a relative valuation using price earnings ratio
/ book value method. The valuation requires management to make certain assumptions about the inputs including size and
liquidity.
Deposit with banks
This represents the deposits with the bank with the maturity term of more than twelve months from the reporting date.
Derivative assets
A derivative asset includes currency option contracts and currency forward contracts carried at fair value. Fair value of
currency option is determined by independent valuer which is the counterparty in the contracts. Fair value of currency
forward is determined by mark to market value of forward on the date of financial position.
Loans and receivables
This primarily includes inter-corporate deposits of US $ 7,852 (2014: US $ 9,941), deferred loan origination costs US $ Nil
(2014: US $ 4,424), security deposit US $ 40,809 (2014: US $ 51,206), advance for investments US $ 2,492 (2014: US $ 2,610)
and other financial assets US $ 15,259 (2014: US $ 43,488).
Loans to and receivables from Joint Venture partner
This primarily includes the investment in debentures in the joint operations, inter corporate deposit to joint operations
and redeemable preference share capital held in the joint operations.
Loans to and receivable from subsidiaries
Loans to and receivable from subsidiary represents inter-corporate deposits given by the Company to its wholly owned
subsidiaries.
Investment in subsidiaries
Investment primarily includes unquoted investments in subsidiaries in the Company financial statements. The Company has
invested in 139,244,601 equity shares (2014: 139,244,601) in KEL, 12,000 equity shares (2014: 12,000) in KASL, 100,000,000
equity shares (2014: 100,000,000) in KGPP, 84,146,843 equity shares (2014: 84,146,843) in KGEPL and 1 equity share (2014:
1) in KSVP totalling to US $ 227,126 (2014: US $ 227,234).
Investment and other financial assets amounting to US $ 113,076 (2014: US $ 177,207) for the Group is subject to security
restrictions (refer note 7).
Impairment of financial assets
During the year ended 31 March 2015, the Group's available-for-sale financial asset of US $ 693 (2014: US $ 2,986) and
loans and receivable of US $ 25,095 (2014: US $ 1,657) were collectively impaired.
During the year ended 31 March 2015, the Company's loans and receivable of US $ Nil (2014: US $ 335) were collectively
impaired and written off.
5. Cash and short-term deposits
Cash and short-term deposits comprise of the following:
Consolidated Company
2015 2014 2015 2014
Cash at banks and on hand 40,730 55,810 1,065 173
Short-term deposits 157,266 138,244 - -
Total 197,996 194,054 1,065 173
Short-term deposits are made for varying periods, depending on the immediate cash requirements of the Group.
The Group has pledged its short-term deposits amounting US $ 157,239 (2014: US $ 136,233) in order to fulfil collateral
requirements (refer note 7).
For the purpose of cash flow statement, cash and cash equivalent comprise:
Consolidated Company
2015 2014 2015 2014
Cash at banks and on hand 40,730 55,810 1,065 173
Short-term deposits 157,266 138,244 - -
Total 197,996 194,054 1,065 173
Less: Restricted cash1 (157,263) (138,120) - -
Cash and cash equivalent 40,733 55,934 1,065 173
1Include deposits pledged for availing credit facilities from banks and deposits with maturity term of three months to
twelve months.
6. Issued share capital
Share capital
The Company presently has only one class of ordinary shares. For all matters submitted to vote in the shareholders meeting,
every holder of ordinary shares, as reflected in the records of the Company on the date of the shareholders' meeting, has
one vote in respect of each share held. All shares are equally eligible to receive dividends and the repayment of capital
in the event of liquidation of the Company.
The Company has an authorised share capital of 500,000,000 equity shares (2014: 500,000,000) at par value of US $ 0.002 (£
0.001) per share amounting to US $ 998.The issued and fully paid up number of shares of the company is 175,308,600 (2014:
175,308,600). During the year the company has not issued/ bought back any ordinary share.
During the previous year, the Company has raised US $ 33,327 (net of share issue expenses of US $ 755) by way of a placing
of 15,930,000 equity shares of US $ 0.002 (£0.001) each with the parent company and institutional investors at a premium of
US $ 2.14 (£ 1.299) per share. The placing shares rank pari-passu in all respects with the other ordinary shares including
the right to receive all dividends and other distributions.
Share application money represents amount received from investors / parents pending allotment of ordinary shares.
Reserves
Share premium represents the amount received by the Group over and above the par value of shares issued. Any transaction
costs associated with the issuing of shares are deducted from share premium, net of any related income tax consequences.
Revaluation reserve comprises gains and losses due to the revaluation of previously held interest of the assets acquired in
a business combination.
Foreign currency translation reserve is used to record the exchange difference arising from the translation of the
financial statements of the Group entities and the same is not distributable.
Capital redemption reserve represents statutory reserve required to be maintained under local law of India on account of
redemption of capital. The reserve is credited equivalent to amount of capital redeemed by debiting retained earnings and
the same is not distributable.
Other reserve represents the difference between the consideration paid and the adjustment to net assets on change of
controlling interest, without change in control and the excess of the fair value of share issued in business combination
over the par value of such shares. Any transaction costs associated with the issuing of shares by the subsidiaries are
deducted from other reserves, net of any related income tax consequences. Further, it also includes the loss / gain on fair
valuation of available-for-sale financial instruments and re-measurement of defined benefit liability net of taxes and the
same is not distributable.
Retained earnings mainly represent all current and prior year results as disclosed in the income statement and other
comprehensive income less dividend distribution.
7. Loans and borrowings
The loans and borrowings comprise of the following:
Interest rate(range %) Final Maturity Consolidated Company
2015 2014 2015 2014
Long-term "project finance" loans 3.00 to 17.25 June-28 2,760,503 2,153,328 - -
Short-term loans 0.00 to 15.00 March-16 168,273 230,856 64,564 12,177
Buyers' credit facility 0.47 to 3.30 March-16 148,687 372,892 49,681 49,851
Cash credit and other working capital facilities 12.00 to 16.00 March-16 111,305 99,823 - -
Redeemable preference shares 0.01 to 15.00 January-29 11,564 17,591 - -
Debentures 0.01 to 17.00 March-25 44,217 14,186 - -
Total 3,244,549 2,888,676 114,245 62,028
Total debt of US $ 3,244,549 (2014: US $ 2,888,676) comprised:
§ Long-term "project finance" loans of the Group amounting US $ 2,760,503 (2014: US $ 2,153,328) is fully secured on the
property, plant and equipment and other assets of subsidiaries and joint operations that operate power stations, allied
services and by a pledge over the promoter's shareholding in equity and preference capital of some of the subsidiaries and
joint and corporate guarantee provided by the Company.
§ The short term loans taken by the Group are secured by the corporate guarantee provided by the Company, fixed deposits of
the Group and by pledge of shares held in the respective entities.
§ Buyer's credit facility is secured against property, plant and equipment and other assets on pari-passu basis, pledge of
fixed deposits and corporate guarantee of KEVL. These loans bear interest at LIBOR plus 25 to 300 basis points.
§ A number of the facilities that are due to expire at 31 March 2016 are in the process of being extended and have rollover
clause in a number of cases.
§ Cash credit and other working capital facilities are fully secured against property, plant and equipment and other assets
on pari-passu basis with other lenders of the respective entities availing the loan facilities.
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