Basis of Preparation
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year except further
change in accounting policy as explained below:
During the year ended September 30, 2012, the revised Schedule VI
notified under the Companies Act 1956, has become applicable to the
Company, for preparation and presentation of its financial statements.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956.
Based on nature of business and activities carried out by the Company,
time between acquisition of assets and their realisation in cash and
cash equivalent, the Company has ascertained its operating cycle as 12
months for the purpose of current / non-current classification of
assets and liabilities.
1 (a) Terms / rights attached to equity shares :
The Company has only one class of Equity Shares having a par value of
Rs. 5/- per share. Equity Shares are parri passu in all respect and
each equity shareholder is entitled to one vote per share. The Company
declares and pays dividends in Indian Rupees. The dividend, as and when
proposed by the Board of Directors is subject to the approval of the
Shareholders in the ensuing Annual General Meeting except in case of
In the event of Liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
2 (a) Rupee Term Loan from Axis Bank Ltd.
Balance outstanding Rs. 200,000,000 (Previous year Rs. 200,000,000)
Above loan is secured by first charge on the movable and immovable
assets of Wind Mill Project located at village Boposhi and Maloshi, Dt.
Bullet repayment on completion of 36 months from the date of first
disbursement i.e from 28 July, 2011 and interest of Base rate 4.25%
p.a., payable monthly.
3 (a) Sales Tax deferral
Balance outstanding Rs. 774,837,571 (Previous year Rs. 820,787,101)
Repayable 1/5th of amount every year after 10 year of the benefit
4 (a) As required by and in accordance with Accounting Standard 22 -
''Taxes on Income'' prescribed by Companies (Accounting Standards)
Amendment Rules, 2006, the Company recognises Deferred Tax which result
from timing differences after ignoring Deferred Tax adjustments
originating and reversing during the tax holiday period. The Deferred
tax adjustments reversing outside the Tax holiday period have been
recomputed consequent to the company''s claim of determining the Tax
holiday period with reference to the date of each phase of
implementation as against the earlier intended period with reference to
a single date of implementation for the Wind Power generation business.
On the basis of information available with the Company, regarding the
status of suppliers as defined under the Micro, Small and Medium
Enterprises Development Act, 2006, there are no suppliers covered
under above mentioned Act.
Particulars of Contingent liabilities As at 30th As at 30th
5. Contingent Liabilities not provided
for in respect of
a) Claims against the Company not
acknowledged as debt. 59,858,522 59,858,522
b) Guarantee given by the Company on
behalf of 300,000,000 300,000,000
other Company ( See Note No 28)
A. The Company as a Promoter of Nandi Economic Corridor Enterprises
Ltd (NECE) has given an undertaking to Infrastructure Development
Finance Co. Ltd ( IDFC) in connection with the loan of Rs. 13,200
million (previous year Rs. 13,200 million) advanced to NECE by IDFC,
whereby the company has undertaken to ensure continuance of the project
undertaken by NECE, continued Promoters contributions as per the
Financial plan, with adequate technical, financial and managerial
support at the least untill the final settlement date.
Further the company has committed to meet the shortfall in resources of
NECE by way of Promoters contribution in terms of the Financing Plan
which can be in the form of Equity / Preference Share Capital and / or
granting of interest free unsecured loan untill the final settlement
date, which together with current contributions would be subordinate to
the funds borrowed from IDFC and shall not be repaid until the final
settlement date. The company has further agreed to ensure that the
Borrower adheres to the land sale / Development Plan as mentioned in
the Common Loan Agreement.
B. The Company, as a promoter and indirect holding company of Nandi
Economic Corridor Enterprises Ltd. (NECE) has signed definitive
agreements on 24th December 2010, in relation to foreign direct
investment of Rs. 500 crores in NECE.
Pursuant to these definitive agreements, NECE has allotted convertible
Securitiesto AIRRO (Mauritius) Holdings V (Investor), on the terms
and conditions contained in the definitive agreements, whereby the
investor would get a shareholding between 8.33% and 16.29% in NECE.
7. The Company has given security to Axis Bank Limited to the extent
of Rs. 30 Crores for securing the term loan facility granted by it to
Nandi Highway Developers Limited (a subsidiary of the Company) by way
of hypothecation of movable assets and equitable mortgage of fixed
assets pertaining to Wind Mill project of the Company located in
village Boposhi and Maloshi, Dist Satara.
8. Segment information based on Consolidated Financial Statements, as
required by Accounting Standard 17 Segment Reportingas prescribed by
Companies (Accounting Standards) Rules 2006 is set out in a separate
statement annexed thereto.
9. Related party disclosures have been set out in a separate
statement annexed to this schedule. The related parties, as defined by
Accounting Standard 18'' Related Party Disclosures'' prescribed by
Companies (Accounting Standards) Rules, 2006, in respect of which the
disclosures have been made, have been identified and taken on record by
10. Consequent to completion of the renewal of registration of the
wind power generation project as a Clean Development Mechanism (CDM)
project with UNFCCC, the Company has accrued income in respect of
Certified Emission Reduction (CER) units, which are to be received on
completion of further formalities. Income accrued for the year is
Rs.2,540,566/- (Previous year Rs. 19,713,473/-). After considering the
CER received during the current year and the exchange rate
fluctuations, CERs Written off of Rs. 17,938,606/- (Previous year Rs.
9,440,565/-). Income receivable as at 30th September 2012 amounts to Rs
9,863,404/- (Previous year Rs. 25,026,399/-).
Nature of Provisions
A. In terms of various notifications / circulars issued by Government
of Maharashtra, electricity duty is payable in respect of wind power
sold to third parties. However in absence of clarity on the entire
subject and also in view of various other issues the Company as a
matter of prudence and without prejudice to dispute the claim, has made
a provision for Electricity duty.
B. All the Wind Power Projects have completed the tenure of wheeling
agreement with the distribution licensee viz. Maharashtra State
Electricity Distribution Company Limited (MSEDCL). All the projects of
wheeling energy are under the open access provisions issued by the Hon''
able Maharashtra Electricity Regulatory Commission (MERC). As a matter
of prudence and without prejudice the Company has made a provision for
wheeling and Transmission charges under open access.
Expected timing of resulting outflow:
A. Since the matter is yet to be resolved / clarified in respect of
applicability of Electricity duty for Wind Power Generation, the timing
of outflow can not be determined.
B. Short Term Loans & Advances includes Wheeling and Transmission
charges of Rs. 52,956,811/- have been paid to the distribution licensee
under protest, as the matter is pending in appeal with the MERC.
11. Liability for employee benefit has been determined by an actuary,
appointed for the purpose, in conformity with the principles set out in
the Accounting Standard - 15 (Revised) Employee Benefit, prescribed by
Companies (Accounting Standards) Rules, 2006 the details of which are
12. Advance for purchase of land is given to Nandi Economic Corridor
Enterprises Limited (NECE), Subsidiary Company. Land is yet to be
transferred in the name of the Company.
13. During the accounting year 2010-11, the Company registered its
18.33 MW Wind Power project located in Satara District, as an eligible
project for issuance of Renewable Energy Certificates (RECs). The
Company had filed necessary applications for issuance of RECs with
respect to Wind Power generated subsequent to such registration. The
Company, during the year accrued 55,091 RECs of which 43,310 REC''s were
sold on Indian Energy Exchange.
14. Disclosures required as per Clause 32 of the Listing Agreement
have been set out in a separate statement annexed hereto.
15. The financial statement for the year ended 30 September, 2011 had
been prepared as per the then applicable, pre-revised Schedule VI to
the Companies Act, 1956. Consequent to the notification issued by
Ministry of Company Affairs dated 28 February, 2011; the financial
statements for the year ended 30 September, 2012 are prepared as per
Revised Schedule VI. Accordingly, the previous year figures have also
been reclassified to conform to this year''s classification. The
adoption of Revised Schedule VI for previous year figures does not
impact recognition and measurement principles followed for preparation
of financial statements.