1 Nature of operations
KSK Energy Ventures Limited (KSKEVL'' or the Company), was
incorporated on February 14, 2001 and is primarily engaged in the
development of private sector power projects, currently predominantly
through subsidiaries and jointly controlled entities with multiple
industrial consumers in India with next level of growth coming through
large base load power plant subsidiaries. KSKEVL focused its strategy
on the private sector power development market, undertaking entire
gamut of development, investment, construction 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.
1) Details of security provided for various credit facilities
a Secured by way of hypothecation on movable properties of the Company
and pledge of certain equity shares of the Company held by KSK Energy
Limited, holding Company.
b Secured by first pari-passu charge on fixed assets, current assets of
the Company and corporate guarantee of KSK Power Ventur pic.
c Secured by pledge of deposits.
a. The Company has a defined benefit gratuity plan. Every employee who
has completed five years or more of service gets a gratuity on
departure at 15 days salary (last drawn salary) for each completed year
of service. The scheme is funded with an insurance company in the form
of a qualifying insurance policy.
Discount rate: The discount rate is based on the prevailing market
yields of Indian government securities as at Balance Sheet date for the
estimated term of the obligations
Expected rate of return on planned assets: This is based on the
expectation of the average long term rate of return expected on
investments of the fund during the estimated term of the obligations.
2 Contingent liabilities and commitments a Contingent liabilities
31 March 2012 31 March 2011
(I) Bank guarantees and letter of
credits outstanding 3,493.73 3,837.54
(ii) Corporate guarantees outstanding 8,223.03 10,719.50
(iii) Service tax department has issued demand order for payment of
service tax amounting to Rs 505.64 (including penalty) relating to the
disagreement on availment of Cenvat Credit for the period April 2008 to
September 2010 and non -payment of service tax. However, the Company
believes that the claims raised by the department are not tenable and
the Company has filed an appeal against the said order before the
b Estimated value of the contracts to be executed on capital and other
account and not provided for:
31 March 2012 31 March 2011
(i) Capital Commitments 0.74 2.78
(ii) Other commitment:
The Company has entered into an arrangement for buying out an
additional stake in KSK Mahanadi Power Company Limited (a subsidiary).
The commitment pending under the arrangement as at 31 March 2012 is Rs.
3,904.55. (31 March 2011:Rs 4,150.13).
3 Operating leases
The Company has entered in to certain operating lease agreements. An
amount of Rs 11.66 (31 March 2011: Rs. 15.76) paid under such
agreements has been disclosed as Rent under other expenses in the
Profit and loss statement.
The schedule of future minimum rental payments in respect of
non-cancellable operating leases is setout below:
4 Segment Reporting
The Segment report has been prepared in accordance with the Accounting
Standard 17 Segment Reporting. There is only one reportable
geographical segment as all the business and operations of the Company
are carried out in India.
For the purpose of business segments, the Company is engaged in two
segments, viz., Project development and power generation.
1) Equity held In subsidiaries and step down subsidiary have been
disclosed under Investment, (see note no 11).
g) The Company has provided securities by way of pledge of investments
for loans taken by subsidiaries (see note no 11).
h) The holding company has pledged certain shares held in the Company
as security towards the borrowings of the Company.
i) Corporate guarantees of Rs.17,098.00 (31 March 2011 Rs.38,120.00),
Bank guarantees of Rs.4,809.08 (31 March 2011 Rs.3,562.16) and Letter
of credit limits of Rs.1,338.85 (31 March 2011 Rs.457.98) has been
given by the Company on behalf of subsidiaries and fellow subsidiaries.
j) Corporate guarantees of Rs.11,255.00 (31 March 2011 Rs.11,555.00)
has been given by step-up holding Company on behalf of the Company.
5 During the year ended 31 March 2012, pursuant to the Shareholders
and Board of Directors approval, the Company has sold its 26 windmills
assets aggregating to 31.80 MW situated in the state of Tamilnadu to
its subsidiary, KSK Wind Energy Private Limited for a total
consideration of Rs. 883.70 million and incurred a loss of Rs.291.93
million and the same is disclosed as exceptional item in accordance
with AS-5 Net Profit or Loss for the Period, Prior Period Items and
Changes in Accounting Policies. The following statement shows the
revenue and expenses of discontinuing operations.
6 During the year ended 31 March 2012, Company has sold Investment in
Sai Maithili Power Company Private Limited for a total consideration of
7 Pursuant to completion of open offer during the year, shareholdings
of the promoters and promoter group have gone up from 54.94% to 74.94%.
8 In the opinion of the Board of Directors, sundry debtors, loans and
advances as at 31 March 2012 stated would be realized in the ordinary
course of the Company''s business are expected to produce at least the
amount at which they are stated in the Balance Sheet.
9 Previous year figures have been regrouped / reclassified to conform
to the classification of the current year.