Get startedLog in
    Picture of KSK Power Ventur logo

    KSK — KSK Power Ventur News Story

    0.000.00%
    gb flag iconLast trade - 00:00
    UtilitiesMicro Cap
    All News

    REG - KSK Power Ventur PLC - Half Yearly Report <Origin Href="QuoteRef">KSK.L</Origin> - Part 1

    Picture of KSK Power Ventur logoKSK Power VenturAnnouncement
    28/11/2014 07:10
    RNS Number : 2473Y
    KSK Power Ventur PLC
    28 November 2014
    KSK Power Ventur plc
    ("KSK" or the "Group" or the "Company")
    Interim Results for the six months ended 30 September 2014
    KSK Power Ventur plc (KSK.L), the power project company listed on the London Stock Exchange, with interests in multiple power plants and businesses across India, is pleased to announce the interim un-audited results for the six months ended 30 September 2014.
    Financial Highlights
     Group Revenue increased by 17% to $ 175.86 m (H1 2013: $ 150.68 m)
     Gross Profit decreased by 17% to $ 37.66 m (H1 2013: $ 45.27 m)
     Operating Profit decreased by 6% to $ 28.62 m (H1 2013: $ 30.36 m)
     Loss Before Tax reduced by 40% to $ 69.03 m* (H1 2013: $ 115.25 m)
     Investment in Property Plant and Equipment increased 3% to $ 3,309.38 m** (H1 2013: $ 3,215.28 m)
    *Includes an unrealised exchange loss of $ 17.82 million due to the restatement of the foreign currency denominated monetary assets and liabilities being recognized. 
    **Incremental capex has been limited at KSK Mahanadi power plant and support infrastructure pending clarification on the various regulatory aspects and the overall environment 
    Operating Highlights
     KSK's operating assets recorded an aggregate generation of 2,949 MWh compared to 2,563 MWh for the same period during the previous year, an increase of 15%, with the following individual Plant Load Factors ("PLF"):

    30 Sep 2014
    30 Sep 2013
    KSK Mahanadi (600 MW)
    1,444 MWh
    (55%)
    -
    -
    Sai Wardha (540 MW)*
    547 MWh
    (23%)
    1,507MWh
    (64%)
    VS Lignite (135 MW)
    473 MWh
    (80%)
    503 MWh
    (85%)
    Sai Regency (58 MW)
    217 MWh
    (85%)
    214 MWh
    (84%)
    Arasmeta (86 MW)**
    95 MWh
    (25%)
    158 MWh
    (42%)
    Sitapuram Power (43 MW)
    166 MWh
    (88%)
    171 MWh
    (91%)
    Solar Project (10 MW)
    8 MWh
    (19%)
    10 MWh
    (22%)
    * PLF at Sai Wardha is expected to significantly rise to previous levels when alternative Power Purchase Agreements (PPAs) and additional scheduling with new industrial customers is implemented. 
    ** PLF at Arasemta expected to recover to earlier levels simultaneously with second unit operation at KSK Mahanadi, under a new PPA arrangement with Chhattisgarh state.
    Key Performance Factors
    The Company's performance during the first half of the financial year and the key determining factors moving forward can be primarily summarised as 
    Potential reduction of fuel costs at Sai Wardha: On 27th October 2014, following a detailed investigation and report by the office of the Director General, a landmark ruling from the Honourable Competition Commission of India, confirming Sai Wardha's claims, held that the Fuel Supply Agreement between Western Coal Fields Limited and Sai Wardha was in contravention of the Competition Act. Western Coal Fields Limited has been directed to undertake the necessary modifications to the Fuel Supply Agreement (FSA) within 60 days. It is now expected that the earlier unfairness embedded in the pricing formulae for coal will be corrected allowing Sai Wardha's financial performance to start improving during the last three months of the year. 
    Lower asset utilisation at Sai Wardha: While the above favourable ruling was only made very recently, during the first half of the year, the operating constraints with respect to coal supplies and costs, transmission corridor access and Power Purchase Agreements ("PPAs") continued, resulting in lower asset utilisation. While the Company has been seeking local regulatory intervention to enable enhanced utilisation through appropriate power agreements and transmission corridor access arrangements, a number of government owned new industrial customers, in the state of Maharashtra, are in discussion for direct offtake from the Sai Wardha power plant. These agreements, once concluded, could provide support for enhanced asset utilisation at Sai Wardha.
    Efforts to address these issues are constantly being pursued and improvements are expected to occur over time. In the interim, reduced asset utilisation levels means revenue and profitability will be temporarily lower.
    Higher asset utilisation at KSK Mahanadi: Gradual increase in generation has been experienced during the first half of the year at KSK Mahanadi, with 550+ MWh during the initial three months increased to generation of 900+ MWh in the subsequent three months. The generation is anticipated to substantially increase further during the last three months of the year upon obtaining the necessary interstate transmission corridor access for the export of power from the second 600 MW unit to Tamil Nadu utility under a long term PPA, which was originally committed to by Power Grid (the Government of India owned Transmission Company) to commence in August 2014.
    KSK Mahanadi entered into a Power Purchase Agreement during November 2013 with the Southern State of Tamil Nadu for 500 MW of power supplies with an attractive tariff awarded under a competitive bidding process. The newly constructed 2000 MW NEW-SR transmission Grid, commissioned in January 2014 was expected to provide the transmission corridor access for the commencement of scheduled supplies to Tamil Nadu during the first half of the year. However, after much delay, permission was granted on 22nd September 2014 to start with an initial 179 MW of supplies and gradually increase to the full quantity of the PPA of 500 MW to Tamil Nadu. This was subsequently withheld due to intervention by the Central Electricity Regulatory Commission based on an approach by certain other customers not granted such facility. A final decision on the matter is expected shortly that will determine the quantum of transmission corridor access that would be made available immediately to KSK Mahanadi for power supplies to Tamil Nadu.
    Additionally, we have been working on the early commencement of supplies to Uttar Pradesh with respect to the 1000 MW PPA, again with an attractive tariff awarded under a competitive bidding process. Similarly, the commencement of supplies under the PPA would be subject to the availability of transmission corridor access for supplies to the Northern Region. 
    The project enjoys a sustainable base for continued operations, subject to the necessary transmission corridor access, for commencement of supplies to the procuring utility customers. As a result, energy generation for the full year from the Company's generation assets is expected to be higher than the 6,500 MWh achieved during the previous year with the actual scale of increase depending on grant of interstate transmission corridor access by Power Grid.
    Current Coal Supplies from Coal India: While the Company continues to explore alternate arrangements to address the developments on coal blocks and alternate long term arrangements, KSK Mahanadi currently enjoys a tapering fuel supply agreement with South Eastern Coal Fields (subsidiary of Coal India) that supports the immediate operations of 1.2 GW. 
    While efforts will continue, over the coming months, to secure the domestic fuel commitments over long term, in the interim coal imports from overseas through appropriate collaborative arrangements which are in place, are expected to provide additional fuel for the planned power generation from KSK Mahanadi.
    Long Term Coal Supplies at KSK Mahanadi: The KSK Mahanadi power plant is configured based on the availability of long term fuel supplies from the Gare Pelma and Morga-II Coal blocks that were owned by state government undertakings. The supply coal was committed under long term Fuel Supply Agreements wherein the Company agreed to make available certain power supplies back to the state from the coal supplied. Following the Honourable Supreme Court of India's judgment dated 25th August, 2014 and subsequent order of 24th September, 2014 which cancelled the allocation of 204 Coal Blocks (including the Gare Pelma and Morga-II mines which were allotted earlier under the Government Dispensation) a new Coal Mines (Special provisions) Ordinance, 2014 was issued in October 2014.
    The new statute, in addition to enabling direct allotment to Government Companies, allows power generation companies to directly secure domestic coal supplies through a public auction process. Draft rules and mechanisms are currently being formulated and it is expected that multiple coal mines could be made available under auction very shortly for eligible power generators. The Company is currently evaluating the various options and anticipates further progress at KSK Mahanadi to be contingent upon progress of these key aspects of fuel security being appropriately resolved.
    Strategy Moving Forward
    With an operating base rising to over 2 GW, the Company's immediate objective would be to enhance the PLF across the various projects over the next few months to higher levels. This would provide a substantial increase in the gross generation, providing a much larger base to absorb the related costs as well as provide the requisite incremental cash flows to meet Company requirements.
    While work continues on a number of major initiatives in this regard, further capital expenditure commitments on KSK Mahanadi will be, as far as practicable, suitably modified to match the visibility and availability of suitably priced coal, with reasonable certainty of the transmission corridor access to allow the Company to deliver power to the utility consumers. The decision to proceed with the construction of each of the additional units will be concluded after due consultation with project lenders. When these matters are fully addressed, the Company has every confidence that it will secure the necessary further funding required to complete remaining major capital works, resulting in an improved financial performance over time. Such an approach would enable an equally higher control on additional indebtedness to be incurred by the Company to fund incremental capital expenditure program.
    More importantly, the KSK Mahanadi assets continue to be intrinsically valuable and extremely attractive investments as large greenfield assets with significant common infrastructure for the entire facility already created and long term PPAs at reasonably attractive tariffs executed. The Management team continues to persist with efforts to address the new developments on fuel as well as other project aspects of KSK Mahanadi at the earliest as they would enable pursuit of additional future growth by the Company.
    Commenting on the results, T. L. Sankar, Chairman of KSK said:
    "These results are in the context of the extraordinary regulatory disruptions and difficult circumstances across the Indian power sector over the last 36 months and the challenging times and overall economic environment in India. The Company's management has continued its efforts to address the various challenges in its operating projects. Results are expected to further improve upon clarity emerging in the regulatory environment and the Company addressing the on-ground situations to co-ordinate planned generation with fuel supplies for the assets. 
    With a new government in New Delhi, decision making is coming through and Courts and Regulators are now seeking to establish a level playing field for power generation. Therefore, power generation is anticipated to play a central role in supporting the overall economic growth in the country over the next few years. With KSK's underlying assets, associated performance and opportunities, the Company is well positioned to be one of the more stable, valuable and sustainable players on the Indian power generation landscape.
    KSK's performance during the period was only possible with the valuable and appreciated support of the various investors in the Company who have enabled us to pursue appropriate business opportunities in these challenging times."
    For further information, please contact:
    KSK Power Ventur plc
    Mr. S. Kishore, Executive Director
    Mr. K. A. Sastry, Executive Director
    +91 40 2355 9922
    Arden Partners plc
    Richard Day 
    +44 (0)20 7614 5900
    Asset Updates
     3.6 GW KSK MAHANADI POWER PROJECT:
    The total gross power generated in the plant during the review period was 1,444 MWh with an average PLF of 55%. Enhanced offtake from the first 600 MW unit coupled with the second 600 MW, which is physically complete and when it exports power will enable further improvement of the PLF during the second half of the financial year.
    The construction activity at KSK Mahanadi, a large, single location, greenfield private power plant will continue in a phased manner with further unit commissioning now targeted over 2016 and 2017. The capital expenditure program on the construction of the remaining four units and associated infrastructure is conditional upon confirmation of availability of fuel supplies, transmission corridor access and other project aspects seamlessly synchronised for performance.
     540 MW SAI WARDHA POWER LIMITED (SWPL):
    The total gross power generated in the plant during the review period was 547 MWh with an average PLF of 23%. The low PLF reflects the challenging local operating environment and the fuel and transmission corridor access grid constraints experienced by the power plant.
    While the Company is negotiating power sale arrangements to commence supplies for part of the capacity that was earlier being supplied to R-infra, the balance capacity that was earmarked to be supplied to captive industrial consumers under the long term PPA commitments also experienced limitations on transmission corridor access from the local grid. A number of alternate PPA arrangements are under discussion and it is anticipated that these could provide the necessary additional utilisation.
    A number of developments early in the period, including unjustified higher coal prices, continued to adversely affect Sai Wardha Power's profitability and appropriate recompense from Western Coalfields Limited is being pursued to address this matter. The Company continues to use every effort to pursue coal price reduction and the granting of the necessary transmission corridor access permissions, which will ultimately lead to the enhanced utilisation and profitability of the Sai Wardha plant whereupon, profitability is expected to revert to the previously achieved levels.
     135 MW VS LIGNITE POWER PRIVATE LIMITED (VSLP):
    The total gross power generated in the plant during the year was 473 MWh, with an average PLF of 80%. The Company is continuing its efforts to secure necessary long term PPAs from the local grid as well as appropriate legal reliefs with respect to tariffs from industrial customers. The Company anticipates that industrial customers, who have previously experienced extremely high tariffs, will find the Company's power supplies and tariff proposition more attractive.
     86 MW ARASMETA CAPTIVE POWER COMPANY LIMITED (ACPCL):
    The total gross power generated in the plant during the year was 95 MWh, with an average PLF of 25%, primarily due to a graduated offtake under the long term PPA by the local utility, which was approved by the Regulatory Commission during May 2014.
    With KSK Mahanadi under obligation to provide 225 MW to Chhattisgarh (the host state), an arrangement has been agreed, pursuant to consent by the state as well as project lenders at KSK Mahanadi, wherein 75 MW would be fulfilled from Arasmeta enabling the surplus power at KSK Mahanadi to be disposed at the higher tariff to other utilities. Enhanced scheduling at Arasmeta would be synchronous to the second 600 MW unit operations at KSK Mahanadi. As a result, the Company anticipates increased plant utilisation, power generation and revenue from the Arasmeta plant. 
     58 MW SAI REGENCY POWER CORPORATION PRIVATE LIMITED (SRPCPL):
    The total gross power generated in the combined cycle gas fired power plant during the year was 217 MWh, with an average PLF of 85%. With the continuous supply of gas and the efficient operation, the plant has produced an operational and financial performance, which the Company expects to continue in the future.
     43 MW SITAPURAM POWER LIMITED (SPL):
    The total gross power generated in the plant during the year was 166 MWh, with an average PLF of 88%. Although the fuel cost for the period under review has increased due to an increase in coal prices from the Singareni Collieries Company Limited, as well as from open market purchases, the energy generated in the period has been supplied to the captive consumers in accordance with the provisions of the PPA, with the balance of power sold to other customers.
     10 MW SAI MAITHILI SOLAR POWER PROJECT:
    The total gross power generated in the plant during the year was 8 MWh, with an average PLF of 19%. The 10 MW PV solar power generation plant is located in the state of Rajasthan, operating under the Jawaharlal Nehru National Solar Mission. 
     ANCILLARY INFRASTRUCTURE INITIATIVE AT KSK MAHANADI
     KSK Water Infrastructure:
    Infrastructure works, including the construction of the 60km pipelines and the pump stations for the supply of water for the Mahanadi project were completed and are operational. The additional intermediate reservoir works, sufficient to support the continuous operation of all six 600 MW units, are expected to be completed over the next few months.
     Raigarh Champa Rail Infrastructure:
    The Company's 15.7 km inward railway line connecting the Mahanadi plant with the Indian Railways main line was completed, enabling the movement of coal into the power plant. As regards the 65.5 km line connecting the Gare Pelma coal block to the main line, this will be implemented after further clarity on the status of Gare Pelma coal block and supplies under FSA are available.
     KSK Mineral Resources:
    Further developments and further support under this would be contingent upon the Government decision on the Gare Pelma III coal block, which is expected in the next few months.
    RENEWABLE POWER GENERATION:
    The Company continues to pursue specific wind power generation initiatives as well as work on the hydro project portfolio for appropriate collaboration opportunities. In response to the continuing initiative of the Indian Government, the Company is seeking to develop an additional 250 MW of solar power generation projects in the medium term. Necessary progress has been made and procurement advances have been paid to procure equipment at competitive prices. The Tamil Nadu Electricity Regulatory Commission has stipulated the necessary tariff arrangement and the Company is in discussion with Tamil Nadu for necessary PPA arrangements and execution of PPA at the earliest.
    EQUITY AND FINANCING ARRANGEMENTS
    During the period, c. 40 million of equity was raised by KSK Energy Ventures Limited ("KSKEV"), KSK's listed Indian subsidiary, through a Qualified Institutional Placement. Pursuant to approval of Foreign Investment Promotion Board, which was obtained in September 2014, 80.8 million warrants convertible into equivalent equity shares at KSKEV have been allotted by KSKEV in favour of KSK, enabling KSK's interest in KSKEV at 72.90% level.
    Earlier the Company secured debt financing within its Indian holding companies that enabled the earlier tender offer as well as the buyout of the entire minority of the KSK Mahanadi project, resulting in KSK owning a substantial interest in KSKEV, the subsidiary which owns the majority interest in KSK Mahanadi Power Company Limited. Also, the Company is pursuing further refinancing opportunities on more favourable terms at the operating project level as well to provide the necessary liquidity to retire part of the existing higher rate debt. 
    With some of the new developments addressed, the Company has every confidence that it will secure the necessary further funding as may be required, in appropriate formats, to complete remaining major capital expenditure, resulting in an enhanced operational profile and resultant improved financial performance over time.
    OUTLOOK
    With unfulfilled demand for power generation in India expected to continue to grow through the coming decade, coupled with the high quality of the Company's expanding asset base, a proven execution capability, and an increasingly efficient business structure, KSK is well positioned to address the Indian power generation opportunities. We anticipate further growth upon securing fuel supplies pursuant to the new statute. As outstanding issues are resolved, and with the successful phased completion of the balance of the units of the 3.6 GW KSK Mahanadi power project being added to the Company's existing portfolio, the Board believes KSK will be one of India's leading suppliers of power.
    PRINCIPAL RISKS AND UNCERTAINITIES
    The business of the Company is subject to a variety of risks and uncertainties which, if they occur may have a materially adverse effect on the Company's business or financial condition, results or future operations. The risks & uncertainties set out in this document are not exhaustive and there may be risks of which the Board is not aware or believes to be immaterial, which may, in the future, adversely affect the Company's business. The risks and uncertainties faced by the Company and the industry as a whole have been previously provided in detail in the Annual Reports of the Company and the Interim Statements. The majority of the risks previously identified have not significantly changed. While the Company attempts to address the same, the key risks and uncertainties continued to be faced by the Company are as follows:
    Delays in government decisions or implementation of earlier government decisions along with continual inconsistencies in government policies across departments and retrospective amendments to the existing policies or introduction of new policies;
     Deviation from approved government policies and abuse of market dominance position by certain contractual counter parties;
     Denial of fuel supplies pursuant to cancellations, shortage of fuel and dependence on market based or imported fuel which are subject to market vagaries and other uncertainties;
     Economic slowdown and negative sectoral outlook with resultant impact on banking sector delays in agreed project disbursements and timely availability of credit;
     Delays in enforcement of contractual rights or legal remedies with government counter parties undertaking fuel supplies, power off take, transmission corridor access amongst others;
     PPA counter parties going contrary to pre agreed understanding and seeking benefits from the power generators that are often in conflict with shareholder obligations to further the business;
     Unusual currency depreciation that adversely effects the cost of project imports, project implementation, and repayment obligations;
     Logistics bottlenecks and other infrastructure constraints of various agencies;
     Challenges in the development of support infrastructure for the power projects including physical hindrances and delay in the issue of permits and clearances associated with land acquisitions; and
     Political and economic instability, global financial turmoil and the resultant fiscal and monetary policies as well as currency depreciation resulting in increasing cost structures. 
    A full set of condensed interim unaudited consolidated financial statements will be available from the Company websites:www.kskplc.co.uk
    An extract of the interim un-audited results for the six months ended 30 September 2014 is shown below.
    Contents     
     INTERIM CONSOLIDATED AND COMPANY STATEMENT OF FINANCIAL POSITION 
     INTERIM CONSOLIDATED AND COMPANY INCOME STATEMENT  
      
    INTERIM CONSOLIDATED AND COMPANY STATEMENT OF OTHER COMPREHENSIVEINCOME 
    INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
    INTERIM COMPANY STATEMENT OF CHANGES IN EQUITY 
    INTERIM CONSOLIDATED AND COMPANY STATEMENT OF CASH FLOWS 
    NOTES TO INTERIM CONDENSED CONSOLIDATED AND COMPANY FINANCIAL STATEMENTS 
    INTERIM CONSOLIDATED AND COMPANY STATEMENT OF FINANCIAL POSITION
    as at 30 September 2014
    (All amount in thousands of US $, unless otherwise stated) 


    Consolidated
    Company

    Notes
    30 September 2014
    31 March 2014
    30 September 2014
    31 March 2014
    ASSETS





    Non-current 





    Property, plant and equipment

    3,309,384
    3,215,282
    -
    -
    Intangible assets and goodwill

    19,611
    20,245
    -
    -
    Investments and other financial assets
    5
    149,005
    154,577
    398,760
    366,767
    Other non-current assets

    97,189
    98,461
    -
    -
    Trade and other receivables

    3,792
    3,422
    -
    -
    Deferred tax asset

    50,534
    33,269
    -
    -


    3,629,515
    3,525,256
    398,760
    366,767
    Current 





    Investments and other financial assets
    5
    83,224
    73,240
    29
    4
    Other current assets

    30,521
    22,688
    589
    391
    Trade and other receivables

    170, 672
    158,139
    -
    -
    Inventories

    27,017
    24,588
    -
    -
    Cash and short-term deposits
    6
    194,091
    194,054
    1,358
    173


    505,525
    472,709
    1,976
    568
    Assets held for sale

    -
    18,456
    -
    -
    Total assets

    4,135,040
    4,016,421
    400,736
    367,335






    EQUITY AND LIABILITIES





    Issued capital

    289
    289
    289
    289
    Share premium

    287,191
    287,191
    287,191
    287,191
    Share application money

    16,498
    18,000
    16,498
    18,000
    Foreign currency translation reserve

    (125,124)
    (113,933)
    10,769
    12,580
    Revaluation reserve

    2,567
    2,614
    -
    -
    Capital redemption reserve

    10,942
    5,461
    -
    -
    Other reserves

    151,284
    143,615
    68
    10
    Retained earnings / (Accumulated deficit)

    21,607
    69,254
    (16,377)
    (14,249)
    Equity attributable to owners of the Company

    365,254
    412,491
    298,438
    303,821
    Non-controlling interests

    207,792
    169,782
    -
    -
    Total equity

    573,046
    582,273
    298,438
    303,821
    Non-current liabilities





    Interest-bearing loans and borrowings
    7
    2,576,970
    1,943,926
    -
    -
    Other non-current financial liabilities
    8
    26,189
    28,193
    -
    -
    Trade and other payables

    51,093
    51,110
    -
    -
    Provisions

    2,515
    2,494
    -
    -
    Deferred revenue

    4,726
    4,974
    -
    -
    Employee benefit liability

    460
    495
    -
    -
    Deferred tax liabilities

    35,869
    31,567
    -
    -


    2,697,822
    2,062,759
    -
    -






    Current liabilities





    Interest-bearing loans and borrowings
    7
    536,131
    944,750
    100,912
    62,028
    Other current financial liabilities
    8
    5,042
    5,073
    -
    -
    Trade and other payables

    310,997
    391,124
    1,386
    1,486
    Deferred revenue

    712
    740
    -
    -
    Other current liabilities

    8,331
    9,336
    -
    -
    Taxes payable

    2,959
    1,910
    -
    -


    864,172
    1,352,933
    102,298
    63,514
    Liabilities associated with assets held for sale

    -
    18,456
    -
    -
    Total liabilities

    3,561,994
    3,434,148
    102,298
    63,514
    Total equity and liabilities

    4,135,040
    4,016,421
    400,736
    367,335
    (See accompanying notes to the interim condensed Consolidated and Company financial statements)
    Approved by the Board of Directors on 27 November 2014 and signed on behalf by:
    S. Kishore K. A. Sastry
    Executive Director Executive Director 
    INTERIM CONSOLIDATED AND COMPANY INCOME STATEMENT
    for the six months ended 30 September 2014
    (All amount in thousands of US $, unless otherwise stated)


    Consolidated 
    Company

    Notes
    30 September 2014
    30 September 2013
    30 September 2014
    30 September 2013
    Revenue
    9
    175,855
    150,675
    -
    -
    Cost of revenue

    (138,191)
    (105,402)
    -
    -
    Gross profit

    37,664
    45,273
    -
    -






    Other operating income

    8,623
    2,846
    -
    -
    Distribution costs

    (4,682)
    (5,619)
    -
    -
    General and administrative expenses

    (12,981)
    (12,136)
    (474)
    (633)
    Operating profit / (loss)

    28,624
    30,364
    (474)
    (633)
    Finance costs
    10
    (106,695)
    (174,368)
    (1,654)
    (1,967)
    Finance income
    11
    9,037
    28,757
    -
    -
    Loss before tax

    (69,034)
    (115,247)
    (2,128)
    (2,600)
    Tax income
    12
    12,386
    35,651
    -
    -
    Loss for the period

    (56,648)
    (79,596)
    (2,128)
    (2,600)
    Attributable to:





    Owners of the Company

    (44,600)
    (63,198)
    (2,128)
    (2,600)
    Non-controlling interests

    (12,048)
    (16,398)
    -
    -


    (56,648)
    (79,596)
    (2,128)
    (2,600)
    Loss per share 





    Weighted average number of ordinary shares for basic and diluted earnings per share

    175,308,600
    159,378,600


    Basic and diluted loss per share (US $) 
    (0.25)
    (0.40)


    (See accompanying notes to the interim condensed Consolidated and Company financial statements)
    Approved by the Board of Directors on 27 November 2014 and signed on behalf by:
    S. Kishore K. A. Sastry
    Executive Director Executive Director 
    INTERIM CONSOLIDATED AND COMPANY STATEMENT OF OTHER COMPREHENSIVE INCOME
    for the six months ended 30 September 2014
    (All amount in thousands of US $, unless otherwise stated)


    Consolidated 
    Company

    Notes
    30 September 2014
    30 September 2013
    30 September 2014
    30 September 2013
    Loss for the period

    (56,648)
    (79,596)
    (2,128)
    (2,600)
    Items that will never be reclassified to income statement





    Re-measurement of defined benefit liability

    111
    349
    -
    -
    Income tax relating to re-measurement of defined benefit liability

    (40)
    (112)
    -
    -








    71
    237
    -
    -
    Items that are or may be reclassified subsequently to income statement





    Foreign currency translation differences

    (16,926)
    (78,368)
    (1,811)
    4,113
    Available-for-sale financial assets





    - current period gain / (losses)

    652
    (2,428)
    -
    -
    - reclassification to income statement

    33
    2,370
    -
    -
    Income tax relating to available for sale financial asset

    59
    37
    -
    -


    (16,182)
    (78,389)
    (1,811)
    4,113
    Other comprehensive (expense) / income, net of tax

    (16,111)
    (78,152)
    (1,811)
    4,113
    Total comprehensive (expense) / income for the period

    (72,759)
    (157,748)
    (3,939)
    1,513






    Attributable to:





    Owners of the Company

    (55,042)
    (116,089)
    (3,939)
    1,513
    Non-controlling interests

    (17,717)
    (41,659)
    -
    -


    (72,759)
    (157,748)
    (3,939)
    1,513






    (See accompanying notes to the interim condensed Consolidated and Company financial statements)
    Approved by the Board of Directors on 27 November 2014 and signed on behalf by:
    S. Kishore K. A. Sastry
    Executive Director Executive Director 
     

    INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
    for the six months ended 30 September 2013
    (All amount in thousands of US $, unless otherwise stated)

    Attributable to owners of the Company



    Issued capital (Amount)
    Share premium
    Foreign currency translation reserve
    Revaluation reserve
    Other reserves
    Retained earnings
    Total
    Non - controlling interests
    Total equity
    As at 1 April 2013 (Restated)
    263
    253,890
    (78,535)
    2,752
    142,262
    120,939
    441,571
    199,615
    641,186
    Issuance of equity shares by subsidiary
    -
    -
    -
    -
    42
    -
    42
    (42)
    -
    Transfer of economic interest to non-controlling interests1
    -
    -
    -
    -
    -
    2,152
    2,152
    (2,152)
    -
    Net depreciation transfer for property, plant and equipment
    -
    -
    -
    (94)
    -
    94
    -
    -
    -
    Transaction with owners
    -
    -
    -
    (94)
    42
    2,246
    2,194
    (2,194)
    -
    Loss for the period
    -
    -
    -
    -
    -
    (63,198)
    (63,198)
    (16,398)
    (79,596)
    Other comprehensive income









    Items that will never be reclassified to income statement









    Re-measurement of defined benefit liability
    -
    -
    -
    -
    328
    -
    328
    21
    349
    Income tax relating to re-measurement of defined benefit liability
    -
    -
    -
    -
    (112)
    -
    (112)
    -
    (112)
    Items that are or may be reclassified subsequently to income statement









    Foreign currency translation differences
    -
    -
    (53,091)
    -
    -
    -
    (53,091)
    (25,277)
    (78,368)
    Available-for-sale financial assets









    - current period (losses) / gains 
    -
    -
    -
    -
    (2,414)
    -
    (2,414)
    (14)
    (2,428)
    - reclassification to profit or loss
    -
    -
    -
    -
    2,370
    -
    2,370
    -
    2,370
    Income tax relating to available-for-sale financial asset
    -
    -
    -
    -
    28
    -
    28
    9
    37
    Total comprehensive (expense) / income for the period
    -
    -
    (53,091)
    -
    200
    (63,198)
    (116,089)
    (41,659)
    (157,748)
    Balance as at 30 September 2013
    263
    253,890
    (131,626)
    2,658
    142,504
    59,987
    327,676
    155,762
    483,438
    (See accompanying notes to the interim condensed Consolidated and Company financial statements)
    1 The group entities have arrangements of sharing of profits with its non-controlling share holders, 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 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.
    INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
    for the six months ended 30 September 2014
    (All amount in thousands of US $, unless otherwise stated)

    Attributable to owners of 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 application money
    -
    -
    (1,502)
    -
    -
    -
    -
    -
    (1,502)
    -
    (1,502)
    Issuance of equity shares by subsidiary (refer note 4a and 4b)
    -
    -
    -
    -
    -
    -
    6,862
    -
    6,862
    58,114
    64,976
    Transfer of economic interest to non-controlling interests1
    -
    -
    -
    -
    -

    -
    2,387
    2,387
    (2,387)
    -
    Equity-settled share based payment
    -
    -
    -
    -
    -
    -
    58
    -
    58
    -
    58
    Transfer of profit to capital redemption reserve
    -
    -
    -
    -
    -
    5,481

    (5,481)
    -
    -
    -
    Net depreciation transfer for property, plant and equipment
    -
    -
    -
    -
    (47)
    -
    -
    47
    -
    -
    -
    Transaction with owners
    -
    -
    (1,502)
    -
    (47)
    5,481
    6,920
    (3,047)
    7,805
    55,727
    63,532
    Loss for the period
    -
    -
    -
    -
    -
    -
    -
    (44,600)
    (44,600)
    (12,048)
    (56,648)
    Other comprehensive income











    Items that will never be reclassified to income statement











    Re-measurement of defined benefit liability
    -
    -
    -
    -
    -
    -
    89
    -
    89
    22
    111
    Income tax relating to re-measurement of defined benefit liability
    -
    -
    -
    -
    -
    -
    (40)
    -
    (40)
    -
    (40)
    Items that are or may be reclassified subsequently to income statement











    Foreign currency translation differences
    -
    -
    -
    (11,191)
    -
    -
    -
    -
    (11,191)
    (5,735)
    (16,926)
    Available-for-sale financial assets











    - current period (losses) / gains 
    -
    -
    -
    -
    -
    -
    627
    -
    627
    25
    652
    - reclassification to profit or loss
    -
    -
    -
    -
    -
    -
    33
    -
    33
    -
    33
    Income tax relating to available-for-sale financial asset
    -
    -
    -
    -
    -
    -
    40
    -
    40
    19
    59
    Total comprehensive (expense) / income for the period
    -
    -
    -
    (11,191)
    -
    -
    749
    (44,600)
    (55,042)
    (17,717)
    (72,759)
    Balance as at 30 September 2014
    289
    287,191
    16,498
    (125,124)
    2,567
    10,942
    151,284
    21,607
    365,254
    207,792
    573,046
    (See accompanying notes to the interim condensed Consolidated and Company financial statements)
    1 The group entities have arrangements of sharing of profits with its non-controlling share holders, 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 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. 
    INTERIM COMPANY STATEMENT OF CHANGES IN EQUITY
    for the six months ended 30 September 2014
    (All amount in thousands of US $, unless otherwise stated)

    Issued capital
    Share premium
    Share application money
    Foreign currency translation reserve
    Other reserve
    Accumulated deficit
    Total
    equity
    As at 1 April 2013
    263
    253,890
    -
    6,420
    -
    (10,049)
    250,524
    Transaction with owners
    -
    -
    -
    -
    -
    -
    -
    Loss for the period
    -
    -
    -
    -
    -
    (2,600)
    (2,600)
    Other comprehensive income







    Foreign currency translation differences
    -
    -
    -
    4,113
    -
    -
    4,113
    Total comprehensive income / (expense) for the period
    -
    -
    -
    4,113
    -
    (2,600)
    1,513
    Balance as at 30 September 2013
    263
    253,890
    -
    10,533
    -
    (12,649)
    252,037








    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
    -
    -
    -
    -
    58

    58
    Transaction with owners
    -
    -
    (1,502)
    -
    58
    -
    (1,444)
    Loss for the period
    -
    -
    -
    -
    -
    (2,128)
    (2,128)
    Other comprehensive income

    Foreign currency translation differences
    -
    -
    -
    (1,811)
    -
    -
    (1,811)
    Total comprehensive income / (expense) for the period
    -
    -
    -
    (1,811)
    -
    (2,128)
    (3,939)
    Balance as at 30 September 2014
    289
    287,191
    16,498
    10,769
    68
    (16,377)
    298,438
    (See accompanying notes to interim condensed Consolidated and Company financial statements)



    INTERIM CONSOLIDATED AND COMPANY STATEMENT OF CASH FLOWS
    for the six months ended 30 September 2014
    (All amount in thousands of US $, unless otherwise stated)

    Consolidated 
    Company 

    30 September 2014 
    30 September 2013 
    30 September 2014 
    30 September 2013 
    Cash inflow / (outflow) from operating activities 




    Loss before tax 
    (69,034)
    (115,247)
    (2,128)
    (2,600)
    Adjustment 




    Depreciation and amortization 
    29,723
    18,656
    -
    -
    Finance cost 
    102,248
    167,793
    1,575
    1,975
    Finance income 
    (9,037)
    (28,757)
    -
    -
    Provision and impairment of trade receivable and other financial assets. 
    33
    4,159
    -
    326
    (Profit) / loss on sale of fixed assets, net 
    212
    (408)
    -
    -
    others 
    112
    237
    58
    -
    Change in 




    Trade receivables and unbilled revenue 
    (12,849)
    (20,886)
    -
    -
    Inventories 
    (2,429)
    (13,423)
    -
    -
    Other assets 
    (2,090)
    (28,104)
    (214)
    195
    Trade payables and other liabilities 
    4,182
    31,069
    (65)
    (68)
    Provisions and employee benefit liability 
    (35)
    (263)
    -
    -
    Cash generated from /(used in) operating activities 
    41,036
    14,826
    (774)
    (172)
    Taxes paid, net 
    (2,330)
    (1,588)
    -
    -
    Net cash provided by / (used in) operating activities 
    38,706
    13,238
    (774)
    (172)





    Cash inflow / (outflow) from investing activities 




    Movement in restricted cash, net 
    (16,781)
    76,244
    -
    -
    Purchase of property, plant and equipment and other noncurrent assets 
    (234,785)
    (133,593)
    -
    -
    Proceeds from sale of property, plant and equipment 
    38,914
    772
    -
    -
    Purchase of financial assets 
    (32,738)
    (12,458)
    (34,758)
    (5,009)
    Proceeds from sale of financial assets 
    32,266
    30,107
    -
    -
    Dividend received 
    93
    70
    -
    -
    Finance income received 
    7,881
    17,012
    -
    -
    Net cash flow used in investing activities 
    (205,150)
    (21,846)
    (34,758)
    (5,009)





    Cash inflow / (outflow) from financing activities 




    Proceeds from borrowings 
    721,780
    659,799
    39,882
    6,064
    Repayment of borrowings 
    (421,630)
    (504,306)
    -
    -
    Finance costs paid 
    (202,933)
    (145,840)
    (2,447)
    (1,161)
    Payment of derivative liability 
    (2,451)
    (1,271)
    -
    -
    Net proceeds from issue of shares and share application money in subsidiary to non-controlling interest 
    64,976
    446
    -
    -
    Refund of share application money 
    (3,285)
    -
    (1,502)
    -
    Net cash flow provided by financing activities 
    156,457
    8,828
    35,933
    4,903
    Effect of exchange rate changes 
    (6,758)
    (20,148)
    784
    -
    Net increase/(decrease) in cash and cash equivalent 
    (16,745)
    (19,928)
    1,185
    (278)
    Cash and cash equivalents at the beginning of the period 
    55,934
    43,834
    173
    287
    Cash and cash equivalents at the end of the period (note 6) 
    39,189
    23,906
    1,358
    9





    (See accompanying notes to the interim condensed Consolidated and Company financial statements)



    NOTES TO INTERIM CONDENSED CONSOLIDATED AND COMPANY FINANCIAL STATEMENTS
    for the six months ended 30 September 2014  
    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. 
    The financial statements were authorised for issue by the Board of Directors on 27 November 2014.
    1.2. Statement of compliance /responsibility statement
    a. the condensed set of financial statements contained in this document has been prepared in accordance with International Accounting Standard 34 ("IAS 34"), "Interim Financial Reporting" as adopted by European Union ('EU');
    b. the Interim management report contained in this document includes a fair review of the information required by the Financial Conduct Authority's Disclosure and Transparency Rules ("DTR") 4.2.7R (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year);
    c. this document includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein);
    d. the interim condensed Consolidated and Company financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 2014, which have been prepared in accordance with IFRSs.
    e. The financial information set out in these financial statements does not constitute statutory accounts. The financial statement is unaudited but has been reviewed by KPMG Audit LLC and their report is set out at the end of this document.
    1.3. Financial period
    The interim condensed Consolidated and Company financial statements are for the six months ended 30 September 2014. The comparative information required by IAS 1 were determined using IAS 34 and include comparative information as follows:
    Statement of financial position  :
    31 March 2014 being the end of immediately preceding financial year.
    Income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows 
    Six months ended 30 September 2013 being the comparable interim period of the immediate preceding financial year.
    1.4. Basis of preparation
    These interim condensed Consolidated and Company financial statements have been prepared under International Accounting Standards-34- "Interim Financial Reporting" as adopted by the European Union.
    These interim condensed Consolidated and Company 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.
    The financial statements have been prepared on going concern basis which assumes the Group and the Company will have sufficient funds to continue its operational existence for the foreseeable future covering twelve months. The Group requires funds both for short-term operational needs as well as for long-term capital investment programmes primarily at KMPCL and ancillary infrastructure projects for its power plants. The Group currently has net current liabilities of US $ 358,647. A number of the facilities that are due to expire by 30 September 2015 are typically extended and have rollover clause in a number of cases that would ultimately translate to non-current liabilities or sustained by nature of working capital facilities. 
    The Group continue to generate cash flows from the current operations which together with the available cash and short term deposits provides liquidity both in short-term as well as in long-term. Anticipated future cash flows and undrawn long term committed facilities of US $ 521,441 together with cash and short term deposits of US $ 194,091 as at 30 September 2014 on a consolidated basis are expected to be utilised to meet the liquidity requirement of the Group in the near future. 
    The Group's forecast and projections, taking into account reasonable possible changes in trading performance, show that the Group has sufficient financial resources, together with assets that are expected to generate free cash flow to the Group. As a consequence, the Directors have a reasonable expectation that the Company and the 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. 
    3. Significant accounting judgements, estimates and assumptions
    There have been no significant changes in the significant accounting judgments, estimates and assumptions applied for the purposes of the preparation of these interim condensed Consolidated and Company financial statements.
    2. 
    4. Dilution of ownership interest in a subsidiary
    a. Qualified Institutional Placement (QIP) by KSK Energy Ventures Limited ('KEVL')
    During the period ended 30 September 2014, KEVL issued additional 40,404,040 equity shares of face value of Rs. 10 (US $ 0.17) each at a premium of Rs. 89 (US $ 1.48) per share in the Indian domestic market by way of Qualified Institutional Placement (QIP). The issue was fully subscribed and KEVL raised Rs. 3,911,991,680 (US $64,976) net of share issue expenses of Rs 88,008,280 (US $ 1,462). 
    Pursuant to the issuance of the additional equity shares the ownership interest of the Group in KEVL decreased from 74.94 percent to 67.61 percent resulting in a 7.33 percent deemed partial disposal of the Group's controlling interest in a subsidiary without loss of control. 
    The partial disposal of the investment in a subsidiary without loss of control is accounted as an equity transaction, and no gain or loss is recognised in the consolidated income statement.The difference of US $ 6,867, between the fair value of the net consideration received (US $ 64,976) and the amount by which the minority interest are adjusted (US $ 58,109), is credited to 'other reserve' within consolidated statement of changes in equity and attributed to the owners of the Company.
    b. During the period ended 30 September 2014, the Group has issued additional 370,000,000 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 $ 0.17) at par. The above transaction has resulted in dilution of 0.31 % of interest in subsidiary to non-controlling interest.
    The dilution of interest in subsidiary to non-controlling interest is accounted as an equity transaction, and accordingly no gain or loss is recognised in the consolidated income statement. The difference of US $ (5) between the fair value of the net consideration paid (US $ Nil) and the amount by which the non-controlling interest US $ 5 is adjusted are debited to 'other reserve' within consolidated statement of changes in equity and attributed to the owners of the Company.
    5. Investments and other financial assets

    Consolidated
    Company

    30 September 2014
    31 March
    2014
    30 September 2014
    31 March
    2014
    Current




    Financial assets at fair value through profit or loss




    - held-for-trading
    2,549
    130
    -
    -
     - Derivative assets
    422
    -
    -
    -
    Loans and receivables
    78,402
    72,333
    29
    4
    Loans to and receivables from JV partners
    1,851
    777
    -
    -

    83,224
    73,240
    29
    4
    Non-current




    Financial assets at fair value through profit or loss




     - Derivative assets
    49,604
    50,196
    -
    -
    Available-for-sale investments 
    22,860
    22,865
    -
    -
    Deposit with banks
    10,346
    10,953
    -
    -
    Loans and receivables 
    35,127
    39,336
    5,525
    5,660
    Loans to and receivables from JV partners
    31,068
    31,227
    -
    -
    Loans to and receivable from subsidiaries
    -
    -
    166,068
    133,873
    Investment in subsidiaries
    -
    -
    227,167
    227,234

    149,005
    154,577
    398,760
    366,767
    Total 
    232,229
    227,817
    398,789
    366,771
    Impairment of financial assets
    During the period ended 30 September 2014, the Group's available-for-sale financial asset of US $ 33 (31 March 2014: US $ 2,986) and loans and receivable of US $ Nil (31 March 2014: US $ 1,657) were collectively impaired.
    During the period ended 30 September 2014, the Company's loans and receivable of US $ Nil (31 March 2014: US $ 335) were collectively impaired.
    6. Cash and short-term deposits
    Cash and short-term deposits comprise of the following:

    Consolidated
    Company

    30 September 2014
    31 March
    2014
    30 September 2014
    31 March
    2014
    Cash at banks and on hand
    39,189
    55,810
    1,358
    173
    Short-term deposits
    154,902
    138,244
    -
    -
    Total 
    194,091
    194,054
    1,358
    173
     For the purpose of cash flow statement, cash and cash equivalent comprise:
    Consolidated
    Company

    30 September 2014
    30 September 2013
    30 September 2014
    30 September 2013
    Cash at banks and on hand
    39,189
    23,793
    1,358
    9
    Short-term deposits 
    154,902
    185,299
    -
    -
    Total 
    194,091
    209,092
    1,358
    9
    Less: Restricted cash1
    (154,902)
    (185,186)
    -
    -
    Cash and cash equivalent
    39,189
    23,906
    1,358
    9
    1Include deposits pledged for availing credit facilities from banks and deposits with maturity term of three months to twelve months.
    7. Interest-bearing loans and borrowings
    The interest-bearing loans and borrowings comprise of the following:


    Final Maturity
    Consolidated
    Company

    30 September 2014
    31 March
    2014
    30 September 2014
    31 March
    2014
    Long-term "project finance" loans

    April-28
    2,565,974
    2,153,328
    -
    -
    Short-term loans

    December-15
    202,096
    230,856
    52,059
    12,177
    Buyers' credit facility

    September-16
    188,419
    372,892
    48,853
    49,851
    Cash credit and other working capital facilities

    September-15
    101,024
    99,823
    -
    -
    Redeemable preference shares

    February-28
    11,760
    17,591
    -
    -
    Debentures

    March-25
    43,828
    14,186
    -
    -
    Total


    3,113,101
    2,888,676
    100,912
    62,028
    The interest-bearing loans and borrowings mature as follows:

    Consolidated
    Company

    30 September 2014
    31 March
    2014
    30 September 2014
    31 March
    2014
    Current liabilities 




    Amounts falling due within one year
    536,131
    944,750
    100,912
    62,028
    Non-current liabilities




    Amounts falling due after more than one year but not more than five years
    920,802
    982,475
    -
    -
    Amounts falling due in more than five years
    1,656,168
    961,451
    -
    -
    Total
    3,113,101
    2,888,676
    100,912
    62,028
    Total debt of US $ 3,113,101 (31 March 2014: US $ 2,888,676) comprised:
     Long-term "project finance" loans of the Group amounting US $ 2,565,974 (31 March 2014: US $ 2,153,328) is fully secured on the property, plant and equipment and other assets of joint venture and subsidiaries that operate power stations, allied services and by a pledge over the promoter's shareholding in equity and preference capital of some of the joint ventures and subsidiaries.
     The short term loan taken by the Group is 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 the Company and KEVL. 
     A number of the facilities that are due to expire at 30 September 2015 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. 
     Redeemable preference shares are due for repayment in 1-13 year.
     Debentures are secured on the property, plant and equipment and other assets of subsidiaries that operate power stations, allied services and by a pledge over the promoter's shareholding in equity capital of some of the subsidiaries.
    8. Other financial liabilities


    Consolidated



    30 September 2014
    31 March
    2014
    Current



    Option premium payable


    5,042
    5,020
    Provision for mark to market loss on derivative instruments


    -
    53



    5,042
    5,073
    Non-Current




    Option premium payable


    24,620
    27,148
    Provision for mark to market loss on derivative instruments


    1,569
    1,045



    26,189
    28,193
    Total 


    31,231
    33,266
    9. Segment information
    The Group has adopted the "management approach" in identifying the operating segments as outlined in IFRS 8. Management has analysed the information that the chief operating decision maker reviews and concluded on the segment disclosure.
    For management purposes, the Group is organised into business units based on their services and has two reportable operating segments as follows:
     Power generating activities and
     Project development activities
    Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss which in certain respects, as explained in the table below, is measured differently from operating profit or loss in the Consolidated financial statements. Group financing (including finance costs and finance income) and income taxes are managed on a Group basis and are not allocated to operating segments. There is only one geographical segment as all the operations and business is carried out in India.
    Period ended 30 September 2014
    Project development activities
    Power generating activities
    Reconciling / Elimination activities
    Consolidated
    Revenue




    External customers
    52
    175,803
    -
    175,855
    Inter-segment
    4,122
    -
    (4,122)
    -
    Total revenue
    4,174
    175,803
    (4,122)
    175,855





    Segment operating results
    3,253
    26,681
    (540)
    29,394
    Unallocated operating expenses, net



    (770)
    Finance costs



    (106,695)
    Finance income



    9,037
    Loss before tax



    (69,034)
    Tax income



    12,386
    Loss after tax



    (56,648)





    Segment assets
    11,720
    3,894,662
    (2,076)
    3,904,306
    Unallocated assets



    230,734
    Total assets



    4,135,040





    Segment liabilities
    3,747
    287,361
    (2,076)
    289,032
    Unallocated liabilities



    3,272,962
    Total liabilities



    3,561,994





    Other segment information




    Depreciation and amortisation
    69
    29,606
    48
    29,723
    Capital expenditure
    16
    213,032
    44
    213,092
    Period ended 30 September 2013
    Project development activities
    Power generating activities
    Reconciling / Elimination activities
    Consolidated





    Revenue




    External customers
    54
    150,621
    -
    150,675
    Inter-segment
    4,203
    -
    (4,203)
    -
    Total revenue
    4,257
    150,621
    (4,203)
    150,675





    Segment operating results
    3,206
    30,311
    (486)
    33,031
    Unallocated operating expenses, net



    (2,667)
    Finance costs



    (174,368)
    Finance income



    28,757
    Loss before tax



    (115,247)
    Tax income



    35,651
    Loss after tax



    (79,596)





    Segment assets
    8,631
    3,589,587
    (1,624)
    3,596,594
    Unallocated assets



    218,916
    Total assets



    3,815,510





    Segment liabilities
    3,026
    495,356
    (1,624)
    496,758
    Unallocated liabilities



    2,835,314
    Total liabilities



    3,332,072





    Other segment information




    Depreciation and amortisation
    142
    18,461
    53
    18,656
    Capital expenditure
    3
    206,372
    45
    206,420
    Notes to segment reporting:
    (a) Inter-segment revenues are eliminated on consolidation.
    (b) Profit / (loss) for each operating segment does not include finance income and finance costs of US $ 9,037 and US $ 106,695 respectively (30 September 2013: US $ 28,757 and US $ 174,368 respectively).
    (c) Segment assets do not include deferred tax asset of US $ 50,534 (30 September 2013: US $ 42,858), financial assets and other investments US $ 137,097 (30 September 2013: US $ 133,113), short-term deposits with bank and cash US $ 11,987 (30 September 2013: US $ 7,075), and corporate assets US $ 31,116 (30 September 2013: US $ 35,870).
    (d) Segment liabilities do not include deferred tax US $ 35,869 (30 September 2013: US $ 25,523), current tax payable US $ 2,959 (30 September 2013: US $ 1,016), interest-bearing current and non-current borrowings US $ 3,113,101 (30 September 2013: US $ 2,734,043), derivative liabilities US $ 31,231 (30 September 2013: US $ 36,405) and corporate liabilities US $ 89,802 (30 September 2013: US $ 38,327).
    (e) The Company operates in one business and geographic segment. Consequently no segment disclosures of the Company are presented.
    (f) One customer in the power generating segment contributing revenues of US $ 88,392 (30 September 2013: US $ 60,951) accounted for 50.28% (30 September 2013: 40.47%) of the total segment revenue.
    10. Finance costs
    Finance costs comprise:

    Consolidated
    Company

    30 September 2014
    30 September 2013
    30 September 2014
    30 September 2013
    Interest expenses on loans and borrowings 1
     73,738 
    44,872
    615
    422
    Other finance costs
     13,182 
    9,673
    798
    1,130
    Provision for impairment of financial assets
    33 
    2,370
    -
    -
    Foreign exchange loss, net2
     18,730
    116,649
    241
    415
    Net loss on financial liability at fair value through profit or loss, net
    112
    -
    -
    -
    Net loss on held-for-trading financial assets




     on re-measurement
    -
    2
    -
    -
    Unwinding of discounts
    900 
    802
    -
    -
    Total
    106,695
    174,368
    1,654
    1,967
    1Borrowing cost capitalised during the period amounting to US $ 117,520 (30 September 2013: US $ 134,276). 
    2 Includes loss on account of restatement of foreign currency denominated monetary assets and liabilities amounting to US $ 17,818 (30 September 2013: US $ 110,933).
    11. Finance income
    The finance income comprises:


    Consolidated



    30 September 2014
    30 September 2013
    Interest income




     bank deposits


    7,120
    10,079
     loans and receivables


    858
    2,576
    Dividend income


    228
    70
    Net gain on held-for-trading financial assets




     on disposal


    3
    1
     on re-measurement


    21
    -
    Unwinding of discount on security deposits


    807
    714
    Net gain on financial liability at fair value through profit or loss , net


    -
    15,317
    Total


    9,037
    28,757
    12. Tax income / (expense)
     The major components of income tax for the period ended 30 September 2014 and 30 September 2013 are:

    30 September 2014
    30 September 2013
    Current tax
    (905)
    (1,936)
    Deferred tax
    13,291
    37,587
    Tax income reported in the income statement
    12,386
    35,651
    13. Related party transactions
    Name of the Company
    Nature of relationship
    K&S Consulting Group Private Limited
    Group ultimate parent (GUP)
    Sayi Energy Ventur Limited
    Parent
    Key management personnel and their relatives (KMP):
    Name of the party
    Nature of relationship
    T L Sankar
    Chairman 
    S Kishore
    Executive Director
    K A Sastry
    Executive Director
    S R Iyer
    Director
    Vladimir Dlouhy
    Director
    Abhay M Nalawade
    Director
    Guy D Lafferty*
    Director
    Keith N Henry
    Director
    K. V. Krishnamurthy
    Director of parent
     Resigned with effect from 05 November 2014 
    Related party transactions during the period
    The following table provides the total amount of transactions that have been entered into with related parties and the outstanding balances at the end of the relevant financial period:
    Particulars
    Consolidated
    Company
    30 September 2014
    30 September 2013
    30 September 2014
    30 September 2013
    Joint Venture
    Parent/GUP
    KMP
    Joint Venture
    Parent/GUP
    KMP
    Subsidiaries
    Parent/GUP
    KMP
    Subsidiaries
    KMP
    Transactions1,2











    Corporate support services fees
    53
    -
    -
    54
    -
    -
    -
    -
    -
    -
    -
    Interest income
    372
    -
    -
    1,846
    -
    -
    -
    -
    -
    -
    -
    Interest expense
    -
    -
    -
    10
    -
    -
    -
    -
    -
    -
    -
    Sale of material
    -
    -
    -
    820
    -
    -
    -
    -
    -
    -
    -
    Capacity charges paid
    1,275
    -
    -
    403
    -
    -
    -
    -
    -
    -
    -
    Inter-corporate deposits and loans given
    15,619
    -
    -
    11,967
    -
    -
    36,290
    -
    -
    5,000
    -
    Inter-corporate deposits and loans refunded
    (13,766)
    -
    -
    (10,851)
    -
    -
    -
    -
    -
    -
    -
    Loan taken
    -
    -
    -
    1,176
    -
    -
    38,649
    -
    -
    78
    -
    Repayment of loan taken
    -
    -
    -
    (329)
    -
    -
    -
    -
    -
    -
    -
    Refund of share application money
    -
    1,502
    -
    -
    -
    -
    -
    1,502
    -
    -
    -
    Managerial remuneration 3
    -
    -
    424
    -
    -
    280
    -
    -
    246
    -
    98






    30 September 2014
    30 September 2013
    30 September 2014
    30 September 2013
    Balances 1,2











    Interest receivable
    3,829
    -
    -
    3,695
    -
    -
    -
    -
    -
    -
    -
    -
    -
    Interest payable
    9
    -
    -
    9
    -
    -
    -
    -
    -
    -
    -
    -
    -
    Loans and inter corporate deposits receivable
    32,919
    1,005
    -
    26,070
    983

    166,068
    -
    -
    -
    -`
    90,835
    -
    Loans payable
    -
    -
    -
    793
    -
    -
    37,524
    -
    -
    -
    -
    -
    -
    -
    -
    78
    -
    Other receivable 
    581
    -
    -
    26
    -
    -
    -
    -
    -
    -
    -
    -
    -
    Other payable
    1,581
    -
    -
    378
    -
    -
    -
    -
    -
    -
    -
    -
    -
    Guarantees given
    146
    -
    -
    -
    -
    -
    468,139


    188,883
    -
    Managerial remuneration payable3
    -
    -
    109
    -
    -
    73
    -
    -
    -
    -
    87
    -
    -
    -
    52
    1The transactions with related parties are made at terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the period end are unsecured, interest-bearing in case of loans and inter-corporate deposits and non-interest bearing in case of other loans and advances and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the period ended 30 September 2014, the Group has not recorded any impairment of receivables relating to amounts owed by related parties (30 September 2013: US $ Nil). This assessment is undertaken each financial period through examining the financial position of the related party and the market in which the related party operates. 
    2 The difference in the movement between the opening outstanding balances, transactions during the period and closing outstanding balances is on account of exchange adjustments and conversion into equity.
    3 Remuneration is net of accrual towards Gratuity, a defined benefit plan, which is managed for the Company as a whole. However, the annual accrual of this liability towards key management personnel is not expected to be significant. There are no other long term benefits and termination benefits which are payable to the key management personnel.
    14. Commitments and contingencies
    Capital commitments
    As at 30 September 2014, the Group is committed to purchase property, plant and equipment for US $ 1,658,940(31 March 2014: US $ 1,589,164). In respect of its interest in joint ventures the Group is committed to incur capital expenditure of US $ 1,120 (31 March 2014:US $1,153). 
    Guarantees
     The Company has guaranteed the loans and non-fund based facilities availed by subsidiaries to unrelated parties for US $ 337,258 (31 March 2014: US $ 339,442) and
     The Group guaranteed the performance of the joint ventures under the power delivery agreements to unrelated parties. No liability is expected to arise.
    15. Financial Instruments
    Carrying amounts versus fair values
    The fair values of financial assets and financial liabilities, together with the carrying amounts in the Interim condensed consolidated statement of financial position, are as follows:

    Carrying amount
    Fair value
    September 2014
    September 2014
    Non- current financial assets


    Trade and other receivables
    3,792
    3,792
    Equity securities - available-for-sale
    22,860
    22,860
    Loans and receivables
    66,195
    66,195
    Derivative assets
    49,604
    49,604
    Non-current bank deposits
    10,346
    10,346
    Total non-current
    152,797
    152,797



    Current financial assets


    Trade and other receivables
    170,672
    170,672
    Equity securities - held for trading 
    128
    128
    Debt securities-held for trading
    2,421
    2,421
    Derivative assets
    422
    422
    Loans and receivables
    80,253
    80,253
    Cash and short-term deposits 
    194,091
    194,091
    Total current
    447,987
    447,987
    Total  
    600,784
    600,784



    Non- current financial liabilities


    Trade and other payables
    51,093
    51,093
    Interest bearing loans and borrowings
    2,576,970
    2,576,970
    Interest rate swaps
    1,569
    1,569
    Option premium payable
    24,620
    24,620
    Total non-current
    2,654,252
    2,654,252



    Current financial liabilities


    Trade and other payables
    310, 997
    310,997
    Interest bearing loans and borrowings
    536,131
    536,131
    Option premium payable
    5,042
    5,042
    Total current
    852,170
    852,170
    Total
    3,506,422
    3,506,422
    The fair values of financial assets and financial liabilities, together with the carrying amounts in the Interim condensed company statement of financial position, are as follows:

    Carrying amount
    Fair value
    September 2014
    September 2014
    Non-current financial assets


    Loans and receivables
    5,525
    5,525
    Loans and receivables to subsidiaries
    166,068
    166,068
    Total non-current
    171,593
    171,593
    Current financial assets


    Loans and receivables
    29
    29
    Cash and short-term deposits 
    1,358
    1,358
    Total current
    1,387
    1,387
    Total 
    172,980
    172,980



    Current financial liabilities


    Trade and other payables 
    1,386
    1,386
    Interest bearing loans and borrowings 
    100,912
    100,912
    Total current
    102,298
    102,298
    Fair value hierarchy
    The table below analyses recurring fair value measurements for financial assets and financial liabilities. These fair value measurements are categorised in to different levels in the fair value hierarchy based on the inputs to valuation techniques used. The different levels are defined as follows.
     Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
     Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
     Level 3: valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
    30 September 2014
    Level 1
    Level 2
    Level 3
    Total
    Financial assets measured at fair value




    Equity securities - available-for-sale
    1,904
    -
    20,956
    22,860
    Equity securities - held for trading 
    128
    -
    -
    128
    Debt securities-held for trading
    2,421
    -
    -
    2,421
    Derivative assets
    -
    50,026
    -
    50,026
    Total 
    4,453
    50,026
    20,956
    75,435
    Financial liabilities measured at fair value




    Interest rate swaps
    -
    1,569
    -
    1,569
    Option premium payable
    -
    29,662
    -
    29,662
    Total
    -
    31,231
    -
    31,231
    The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting period during which the transfer has occurred. During the six-month period ended 30 September 2014, there were no movements between Level 1, Level 2 and Level 3 fair value measurements.
    Reconciliation of Level 3 fair value measurements of financial assets:
    30 September 2014
    Available-for-sale
    Total

    Unquoted Equities

    Opening balance 
    21,439
    21,439
    Total gains or losses:


    - in income statement
    -
    -
    - in other comprehensive income
    (483)
    (483)
    Settlements
    -
    -
    Transfers into level 3 
    -
    -
    Closing balance 
    20,956
    20,956
    Total gains or losses for the period shown above, relates to available for sale securities held at the end of the reporting period.
    Valuation techniques
    Level 2 fair values for simple over-the-counter derivative financial instruments are based on broker quotes. Those quotes are tested for reasonableness by discounting expected future cash flows using market interest rate for a similar instrument at the measurement date. Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the Group entity and counterparty when appropriate.
    Level 3 fair values for equity securities-available for sale has been determined by using Comparable Company Analyses. This is a relative valuation technique which involves comparing that company's valuation multiples to those of its peers. The multiples consider for the valuation is P/B for book value which is then adjusted for differences that are directly related to the characteristics of equity instruments being valued such as discounting factor for size and liquidity of 15%.
    Level 3 fair value of the unquoted venture capital units has been determined using a discounted cash flow model. The valuation requires management to make certain assumptions about unobservable inputs to the model, of which the significant unobservable inputs are disclosed in the table below. 
    Average growth rate for cash flows in subsequent years  3.00% 
    Discount rate    11.01%
    Apart from the above, forecast cash flows for first five years is a significant unobservable input. The management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value. An increase in the forecast cash flows and the growth rate for cash flows in the subsequent periods would both lead to an increase in the fair value of the equity instruments. An increase in the discount rate used to discount the forecast cash flows would lead to a decrease in the fair value of the units. The significant unobservable inputs are not interrelated. The fair value of the units is not significantly sensitive to a reasonable change in the forecast cash flows or the discount rate, however it is to a reasonable change in the growth rate.
    16. Subsequent Event: 
    Issue of warrants by KSK Energy Ventures Limited ('KEVL') 
    During the month of November 2014, KEVL issued and allotted 80,808,080 Warrants of face value of Rs. 10 (US $ 0.17) to KSK Power Holdings Limited ("KPHL") on preferential basis at a fixed price of Rs. 99 (US $ 1.61) which are convertible into equity shares not later than 18 months from the date of allotment. 

    This information is provided by RNS
    The company news service from the London Stock Exchange
      END
    IR PGGRGGUPCGRM

    Recent news on KSK Power Ventur

    See all news