AUDITORS' REPORT - GMR Group...the chit fund, Nidhi or mutual benefit societies. GIRISH MURTHY &...
Transcript of AUDITORS' REPORT - GMR Group...the chit fund, Nidhi or mutual benefit societies. GIRISH MURTHY &...
GIRISH MURTHY & KUMAR
Chartered Accountants
4502, High Point IV, 45, Palace Road, Bangalore – 560 001. Ph : 22 65 202 / 23 81 473
AUDITORS' REPORT
TO THE MEMBERS OF GMR RAJAHMUNDRY ENERGY LIMITED
We have audited the attached Balance Sheet of GMR RAJAHMUNDRY ENERGY LIMITED (‘the Company’) as at 31st March 2010 and the Profit and Loss account and Cash Flow Statement, annexed thereto for the Period ended on that date. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Further to our comments in the Annexure referred to above, we report that:
1. We have obtained all the information and explanations which to the best of Our Knowledge and belief were necessary for the purpose of our audit.
2. In our opinion, proper books of account, as required by law have been kept by
the company, so for as appears from our examination of the books. 3. The said Balance Sheet, the Profit & Loss Account & the cash flow statement are
in agreement with books of account. 4. In our opinion, the Balance Sheet, the Profit & Loss Account & the cash flow
statement complies with the mandatory Accounting Standards referred in Section 211 (3C) of the Companies Act, 1956, and
5. On the basis of written representations received from the directors as at 31st
March 2010 and taken on record by the board of directors, we report that none of the directors is disqualified as at 31st March 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the companies act,1956.
GIRISH MURTHY & KUMAR
Chartered Accountants
4502, High Point IV, 45, Palace Road, Bangalore – 560 001. Ph : 22 65 202 / 23 81 473
In our opinion, and to the best of our information and according to the explanations given to us, the said accounts, together with and subject to notes annexed thereto, give the information required, and give a true and fair view:
a. In the case of Balance Sheet of the state of affairs of the company as at 31st March 2010; and
b. In the case of the Profit & Loss Account, of the expenditure incurred during
the Period ended on that date
c. In case of the Cash Flow Statement, of the cash flows for the year ended on that date
PLACE : BANGALORE FOR GIRISH MURTHY & KUMAR Chartered Accountant DATE : 10th May,2010
(A.V SATISH KUMAR) Partner.
GIRISH MURTHY & KUMAR
Chartered Accountants
4502, High Point IV, 45, Palace Road, Bangalore – 560 001. Ph : 22 65 202 / 23 81 473
ANNEXURE TO THE AUDITORS’ REPORT As required by the Companies (Auditors report) order, 2003 issued by the company law board, and on the basis of such checks as considered appropriate and according to the information and explanations given to us during the course of our audit, we report that: -
i) The company has maintained proper records showing full particulars including
quantitative details and situation of Fixed Assets. During the year, the management has physically verified the fixed assets and there were no discrepancies. No substantial parts of the Fixed Assets have been disposed during the year.
ii) The company has not commenced its operations and therefore had no stocks of finished goods, stores, spare parts and raw materials during/ at the end of the year.
iii) The company has taken loans from companies listed in the register maintained under section 301 of the Companies Act, 1956. However the same is not prejudicial to the interest of the company.
iv) The company has not granted any loans, secured or unsecured to the companies, firms or other parties listed in the register maintained under section 301 of the companies act 1956, and/or to the companies under the same management as defined under section 370 (I-B) of the companies act, 1956.
v) The company has not given any loans or advances in the nature of loans during the year
vi) The company is yet to commence its operations and has not purchased raw materials or components during the year. In our opinion, for the purchase of assets there is an adequate internal control procedure commensurate with the size of the company and the nature of its business. Further we have not noticed any evidence of persisting failures to correct major weakness in internal control.
vii) The company has not entered into any contract falling under Section 297 and
therefore no particulars of transaction have been entered in the Register in pursuance of section 301 of the act.
viii) The company has not accepted deposits from the public during the year to which
the provisions of section 58A and 58AA of the companies Act, 1956 and the rules framed there under are applicable.
ix) In our opinion, the company's present Internal Audit system is commensurate with the size and nature of its business.
GIRISH MURTHY & KUMAR
Chartered Accountants
4502, High Point IV, 45, Palace Road, Bangalore – 560 001. Ph : 22 65 202 / 23 81 473
x) The central government has not prescribed the maintenance of cost records
by the companies under section 209(i)(d) of the companies act, 1956. xi) The Company is regular in payment of, income tax, wealth tax & Provident
Fund. We are informed by the company that the Provisions of the Employees State Insurance Scheme, Investor education and protection fund, sales tax, excise, customs and cess are not applicable to the Company.
xii) There are no undisputed amounts payable in respect of income tax, wealth
tax, and Provident fund as at 31st march 2010, which are outstanding for a period of more the than six months from the date they become payable.
xiii) The company has not granted any loans/advances on the basis of security by way of shares, debenture etc. As such no records and documents have been maintained.
xiv) The Company is not having any accumulated losses nor the company has
incurred any cash loss for this year or the preceding financial year xv) The company is not dealing or trading in shares, debentures and other
investments and as such no records have been maintained. xvi) We have been informed by the company that it has not given any guarantee
for any loans taken by the others from banks and financial institutions. xvii) In our opinion, and on the basis of our examination and according to the
information and explanations given to us, on an overall examination of the balance sheet of the Company, we report that during the year, prima facie, the Company has not used funds raised on short- term basis for long-term investment. .
xviii) No Preferential allotment of shares is made by the company to parties and
companies covered in the registers maintained under section 301 of the act. xix) The company has not issued any debentures and therefore no securities have
been created. xx) We have not noticed any fraud on or by the company during the year. xxi) The company is not covered under special statutory provisions applicable to
the chit fund, Nidhi or mutual benefit societies.
GIRISH MURTHY & KUMAR
Chartered Accountants
4502, High Point IV, 45, Palace Road, Bangalore – 560 001. Ph : 22 65 202 / 23 81 473
xxii) According to the information and explanations given to us and based on such
examination, we are of the opinion that other provisions of the Companies (Auditors' report Order) 2003 are not applicable for the year covered under this report.
PLACE : BANGALORE FOR GIRISH MURTHY & KUMAR
Chartered Accountant DATE : 10th May,2010
(A.V SATISH KUMAR) Partner.
GMR Rajahmundery Energy Limited
Balance Sheet as at 31st March 2010
Amount in Rupees
Sch.
Ref
I. Sources of Funds:
1. Shareholders’ Funds
a) Capital 1 500,000
2. Share Application Money Pending Allotment -
3.Loan Funds
a) Unsecured Loans 2 5,232,150,000
Total 5,232,650,000
II. Application of Funds:
1. Fixed Assets
a) Gross Block 3 1,182,913
b) Less : Depreciation 52,939
c) Net Block 1,129,974
d) Capital Work in Progress (including
capital advances) 4 5,484,341,987
2. Current Assets, Loans and Advances
a) Cash and Bank Balances 5 655,039
b) Loans and Advances 6 96,878,505
97,533,544
Less : Current Liabilities and Provisions 7
a) Liabilities 354,034,893
b) Provisions 1,393,819
355,428,711
Net Current Assets (257,895,167)
3.Profit and Loss Account 5,073,206
Total 5,232,650,000
Statement on Significant Accounting policies and Notes
to the Accounts
9
0
The Schedules referred to above form an integral part of the Balance Sheet
This is the Balance Sheet referred to
in our report of even date.
A V Satish Kumar B.V.N.Rao Raaj Kumar
Partner Director Director
For and on behalf of
Girish Murthy & Kumar Place: Bangaluru
Chartered Accountants Date :
Membershim Number : 26526
Place: Bangalore
Date:
31-March-2010
GMR Rajahmundery Energy Limited
Profit and Loss Account for the year ended March 31, 2010
Amount in Rupees
Schedule 31-March-2010
I. Income
Sales -
Other Income -
-
II. Expenditure
Administration expenses 8 5,073,206
Interest and Finance Charges -
Depreciation -
5,073,206
III. Profit/(Loss) Before Taxation (5,073,206)
Provision for Taxation
- Current
- Deferred
Fringe Benefit Tax
Wealth tax -
IV. Profit/(Loss) After Taxation as per audited statement of accounts (5,073,206)
Preoperative Expenses -
Surplus/(Defecit) brought froward from Previous year
V. Available for Appropriation (5,073,206)
VI. Available surplus carried to Balance Sheet (5,073,206)
Earning per share(Per Equity share of Rs.10 Each)
Earning per Share -Basic (101.46)
This is the Profit and Loss Account referred to in our report of even date.
For and on behalf of the Board
A V Satish Kumar B.V.N.Rao Raaj Kumar
Partner Director Director
For and on behalf of
Girish Murthy & Kumar Place: Bangaluru
Chartered Accountants Date :
Membershim Number : 26526
Place: Bangalore
Date:
The Schedules referred to above form an integral part of the Profit and Loss Account
GMR Rajahmundry Energy Ltd
Schedules forming part of the Balance Sheet as at March 31, 2010
Amount in Rupees
Schedule 1: Share capital 31-March-2010
a. Authorised Capital 500,000
(50,000 Equity Shares of Rs.10/- each)
500,000
b. Issued, subscribed and paid up 500,000
(50,000 Equity Shares of Rs.10/- each)
(out of which 50,000/- shares of Rs.10/-
each are held by GMR Energy Ltd, holding
company)
Total 500,000
Schedule 2: Unsecured Loans 31-March-2010
Non Convertible Debentures 5,232,150,000
(From Holding Company)
Total 5,232,150,000
GMR Rajahmundery Energy Ltd
Schedules forming part of the Balance Sheet as at 31st March'10
Schedule 3
Fixed Assets
(Amount in Rupees)
As at 27th Nov'09Additions
As at 31st March,
2010
As at 27th Nov'09 Additions As at 31st
March, 2010
As at 31st March,
2010
As at 27th Nov'09
Plant & Machinery - - - - - - - -
Office Equipment - 52,324 52,324 - 23,559 23,559 28,765 -
Computer Equipment - 1,130,589 1,130,589 - 29,380 29,380 1,101,209 -
Capitalized Software - - - - - - - -
Furniture & Fixtures - - - - - - - -
Vehicles - - - - - - - -
Total - 1,182,913 1,182,913 - 52,939 52,939 1,129,974 -
Grand Total - 1,182,913 1,182,913 - 52,939 52,939 1,129,974 -
Previous Year - - - - - - - -
Description Gross Block Depreciation Net Block
Amount in Rupees
Schedule 4: Capital Work in Progress 31-March-2010
A) Capital Advances 2,193,282,269
B) Incidental Expenditure During
Construction Period
EPC Expenses 3,151,549,518
Finance Cost 97,113,115
Salaries 4,897,869
Placement & Recruitment 120,006
Technical Consultancy Fees 8,647,519
Consultancy & Professional Charges 6,541,742
Rent 7,957,412
Office Maintenance & Others 1,904,224
Business Promotion Expenses 1,500
Insurance 5,774,894
Rates & Taxes 1,370,197
Guest House Maintenance 37,789
Repairs & Maintenance 393,010
Hire Charges 18,298
Communication Expenses 46,213
Books & periodicals 205
Meetings & Conference 15,163
Staffwelfare & Amenities 5,054,487
Travelling and conveyance 256,098
Advertisement 269,126
Printing & Stationery 38,393
Depreciation 52,939
Miscellaneous Expenses 3
Less:
Other Income (1,000,000)
Subtotal (B) 3,291,059,718
Grand Total (A) + (B) 5,484,341,987
GMR Rajahmundry Energy Ltd
Schedules forming part of the Balance Sheet as at March 31, 2010
Amount in Rupees
Schdule 5: Cash and Bank Balances 31-March-2010
Cash on Hand 170,511
Balances with scheduled banks
- On Current accounts 484,528
Total 655,039
-
Amount in Rupees
Schdule 6: Loans & Advances 31-March-2010
(Unsecured and considered good,unless otherwise stated)
Loans to Employees 38,250
Advances recoverable in cash or in kind or for value to be received
- Considered good 96,840,255
Total 96,878,505
Amount in Rupees
Schedule 7: Current Liabilities and Provisions 31-March-2010
a. Current Liabilities
Sundry creditors:
I. Dues to Micro and small scale industrial undertakings -
II. Dues to other than Micro and Samll Scale Industrial Undertakings 334,325,615
Total 334,325,615
Other Liabilities 19,709,278
Total 19,709,278
b. Provisions
Provision for Employee Benefits 1,393,819
Total 355,428,711
Sch. Bal Sheet Page 1
GMR Rajahmundry Energy Ltd
Schedules forming part of the Profit & Loss Account for the year ended March 31,2010
Amount in Rupees
Schedule 8: Administration Expenses ** 31-March-2010
Charities & Donations 5,000,000
Rates & Taxes 25,586
Business Promotion Expenses 25,560
Statutory Auditors Fees 22,060
Total 5,073,206
** : Refer to Note number 2 of the "Notes to Account"
Sch P&L Page 1
GMR Rajahmundry Energy Ltd Schedule 9
SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Preparation of Financial Statements:
The financial statements are prepared under the historical cost convention on the accrual basis, in accordance with the Indian Generally Accepted Accounting Principles (“GAAP”) and mandatory accounting standards as specified in the Companies (Accounting Standard) Rules, 2006, the provisions of the Companies Act, 1956. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. Management evaluates all recently issued or revised accounting standards on an ongoing basis.
B. Use of Estimates:
The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets, liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.
C. Revenue Recognition:
i) Revenue from sale of energy is recognized on accrual basis in accordance with the provisions of the Power Purchase Agreement {PPA}, after Commercial Operation Date.
ii) Interest is recognized using the time proportion method based on rates implicit in the transaction. Dividend income is accounted for in the year in which the right to receive the same is established.
D. Fixed Assets and Capital Work-in-progress:
i) The gross block of fixed assets is stated at cost of acquisition or construction,
including any cost attributable to bringing the assets to their working condition for their intended use.
ii) All Project related expenditure viz, civil works, machinery under erection, construction and erection materials, pre-operative expenditure incidental / attributable to construction of project, borrowing cost incurred prior to the date of commercial operation and trial run expenditure are shown under Capital Work-in-Progress. These expenses are net of recoveries and income (net of tax) from surplus funds arising out of project specific borrowings.
GMR Rajahmundry Energy Ltd Schedule 9
E. Depreciation: Depreciation is provided on a pro-rata basis on Straight Line Method at rates specified in Schedule XIV to the Companies Act, 1956. Except for the Assets individually costing less than Rs. 5 000/- is depreciated fully in the year of acquisition.
F. Borrowing cost:
Borrowing costs that are directly attributable to the acquisition, construction, or production of an asset are capitalized as part of the cost of that asset till the date of capitalization of qualifying asset. Other borrowing costs are recognized as expenses in the period in which they are incurred.
G. Investments: i) Long term Investments are stated at cost. Provision for diminution in value of long term
investments is made only if such a decline is other than temporary in the opinion of the management.
ii) Current Investments are stated at cost or market value whichever is lower.
H. Foreign Currency Transactions: Transactions in foreign currency are recorded at the exchange rate prevailing at the dates of the transaction. Monetary items are translated at year-end foreign exchange rates. Resultant exchange difference, arising on payment or conversion of liabilities / assets, is recognized as income or expense, in the year in which they arise.
I. Employee Benefits: i) Defined Contribution Plan
The Company's defined contribution plans are Employees' Provident Fund {under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952} Pension fund and Superannuation Fund. Hence, the company has no further obligation beyond making the contributions. The Company's contributions to Provident Fund and Pension fund are made at pre-determined rates and are charged to the Books of Accounts.
ii) Defined Benefit Plan
Gratuity for Employees is covered under a scheme of Life insurance Corporation of India and contributions in respect of such scheme are recognized in profit and loss account .The liability as at the balance sheet date is provided for based on the actuarial valuation in accordance with the requirements of revised accounting standard 15(revised 2005) on „Employee Benefits‟ notified under section 211 (3C) of the Act („revised AS 15‟) as at the end of the year.
GMR Rajahmundry Energy Ltd Schedule 9
iii) Other Long Term Employee Benefits
Long term compensated absences for Leave Encashment are provided as per Actuarial Valuation Certificate obtained from an Actuary which is determined using Projected Unit Credit Method. Actuarial gains or losses are recognized immediately in the profit and loss account.
J. Earnings per share:
The basic earnings per share are computed by dividing the net profit after tax for the period by the weighted average number of equity shares outstanding during the period. Diluted earnings per share, if any are computed using the weighted average number of equity shares and dilutive potential equity share outstanding during the period except when the results would be anti-dilutive.
K. Taxes on Income: Current tax is determined on the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized on timing differences; being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years. Deferred tax assets and liabilities are computed on the timing differences applying the enacted or substantively enacted rates. Deferred tax assets arising on account of unabsorbed depreciation or carry forward of tax losses are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future tax income will be available against which such deferred tax assets can be realized.
L. Impairment:
At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset‟s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognized immediately as income in the profit and loss account.
M. Contingent Liabilities:
Contingent liabilities, if any, are disclosed by way of Notes on accounts. Provision is made in the Accounts in respect of those contingencies which are likely to materialize into liabilities after the year end, till the approval of accounts by the Board of Directors and which have material effect on the position stated in Balance sheet.
GMR Rajahmundry Energy Ltd Schedule 9
NOTES TO ACCOUNTS
1. Nature of Business:
GMR Rajahmundry Energy Limited is promoted as a Special Purpose Vehicle (SPV) by GMR Energy Limited, the holding company, to develop and operate 768 MW Gas based power project in Rajahmundry , Andhra Pradesh. The company is in the process of setting up of the project.
2. Capital commitments:
Amount in Rupees Particulars 31/03/2010
1) Estimated amount of contracts remaining to be executed on Capital account and not provided for {net of advances}
15,180,935,846
3. Employee benefits
The disclosures as required as per the revised AS 15 are as under: The Company has with effect from 27th November 2009 adopted Accounting Standard 15 Employee Benefits {revised 2005} issued by the Institute of Chartered Accountants of India [the 'revised AS 15']. The company has determined the liability for gratuity and long term compensated absences in accordance with revised AS 15. Disclosures as envisaged in revised AS 15 in respect of Gratuity and leave encashment are given below:
GMR Rajahmundry Energy Ltd Schedule 9
Gratuity and Leave Encashment: a) Defined Benefit Plan - As per Actuarial Valuation as at 31st March 2010 {Funded}
Amount in Rupees
Particulars 31/03/2010
Projected benefits obligation at the beginning of the year Nil
Current Service Cost 275,348
Interest Cost -
Actuarial gain/(loss) -
Benefits Paid -
Projected benefit cost at the end of the year 275,348
Amount recognised in the balance sheet
Projected benefit obligation at the end of the year 275,348
Fair value of plan assets at the end of the year -
Funded status of the plans liability 275,348
(Liability)/Asset recognised in the balance sheet 275,348
Cost for the year
Current Service Cost 275,348
Interest Cost -
Expected return on plan assets -
Net actuarial loss/(gain) recognized in the year -
Net Cost 275,348
Assumptions
Discount Rate (p.a.) 8.00%
Estimated rate of Return on plan assets 8.00% Expected rate of salary increase Attrition Rate Retirement expectancy
6.00% 5.00%
60
a) Liability towards Leave Encashment based on Actuarial valuation amounts to Rs.636,930
as at 31st March‟10 (Corresponding period at 31st March 09, Nil )
b) Liability towards Leave Travel Allowance (LTA) based on Actuarial valuation amounts to Rs.350,894 as at 31st March‟10 (Corresponding period at 31st March‟09, Nil )
GMR Rajahmundry Energy Ltd Schedule 9
4. Details of Auditors Remuneration:
Amount in Rupees
Particulars
For the Year Ended
31st March’10
i) Statutory Audit Fees 22,060
ii) Tax Audit Fees -
iii) Certification / Consultation Fees -
5. The information required by Paras 3 and 4 of part II of Schedule VI to Companies Act 1956 is as under : Amount in Rupees
Particulars 31/03/2010
A. Value of imports calculated on CIF Basis:
i) Capital Goods {net} ** 194,08,48,088
B. Expenditure incurred in Foreign Currency
31/03/2010
i) Professional and Consultancy charges *
Nil
ii) Travelling Expenses *
Nil
iii) Others *
Nil
Total -
* Capitalized in the books as part of project development expenditure ** Represents capital advance sum for procurement of goods
GMR Rajahmundry Energy Ltd Schedule 9
6. List of Related Parties with whom transactions have taken place during the year:
GMR Rajahmundry Energy Limited - Related parties
(i) Enterprises that control the Company
GMR Energy Limited (GEL) (Holding Company)
GMR Infrastructure Limited (GIL)
GMR Holdings Private Limited (GHPL)
(ii) Fellow Subsidiary Companies
GMR Kamalanga Energy Limited
GMR Power Corporation Private Limited (GPCPL) Vemagiri Power Generation Limited (VPGL) GMR Mining and Energy Private Limited (GMEPL) GMR (Badrinath) Hydro Power Generation Limited (GBHPL) GMR Consulting Services Private Limited (GCSPL) Himtal Hydropower Company Private Limited (HHCPL) GMR Energy (Mauritius) Limited (GEML) GMR Upper Karnali Hydropower Company Private Limited (GUKCPL) GMR Lion Energy Limited (GLEL) GMR Coastal Energy Private Limited (GMRCEPL) GMR Bajoli Holi Hydropower Private Limited (GBHHPL) GMR Londa Hydropower Private Limited (GLHPL) GMR Energy (Cyprus) Limited (GECL) GMR Energy (Netherlands) B. V. (GENBV) Londa Hydro Power Private Limited (LHPL) Badrinath Hydro Power Generation Pvt. Ltd.(BHPL) PT Barasentosa Lestari (PT BSL), Indonesia PT Dwikarya Sejati Utama (PT DSU), Indonesia PT Dutasarana Internusa (PT DSI),Indonesia PT Unsoco, Indonesia EMCO Energy Limited GMR Chhattisgarh Energy Private Limited (GCEPL) SJK Powergen Limited Lion Energy Tuas Pte Ltd, Singapore
(iii) Enterprises where significant influence exists
(iv) Enterprises where key management personnel and their relative exercise significant influence
(v) Key Management Personnel
GMR Rajahmundry Energy Ltd Schedule 9
A) Details of the Transactions as Given below: *
Amount in Rupees
Particulars 31/03/2010
a) Share application money received GEL NIL
b) Equity Share capital allotted GEL 5 00 000
c) Non Convertible Debentures received GEL 5,232,150,000
d) Interest paid on Non Convertible Debentures GEL 6,28,31,499
* Transactions and outstanding balances in the nature of reimbursement of expenses incurred by one company on behalf of the other have not been considered above.
B) Balance as on 31st March‟ 10 is as under for following related parties.
Name of the company
For the Year Ended 31st March‟10
GMR Energy Ltd – Payable 5,232,150,000 GMR Vemagiri Power Generation Ltd (VPGL) – Receivable.
11,44,980
Note: Transactions and Outstanding balances in the nature of Reimbursement of Expenses incurred by one company on behalf of the other have not been considered above.
7. The Company has entered into certain cancelable operating lease agreements mainly for office premises. The lease rentals charged during the year as per the agreement are as follows:
Amount in Rupees
Particulars
For the Year Ended 31st March’10
Lease Rentals under cancelable leases 79,57,412
Lease Rentals under non-cancelable leases -
GMR Rajahmundry Energy Ltd Schedule 9
a) Earnings per Share (EPS) *
Particulars
For the Year Ended 31st
March’10
Nominal value of Equity Shares(Rs. Per share) 10 Total No. of Equity Shares outstanding at the beginning of the Period/Year - Total No. of Equity Shares outstanding at the end of the Period/Year 50,000 Weighted average No. of Equity shares for Basic earnings per Share 50,000
Profit as per Profit and loss Account (5,073,206)
Less: Dividend on Preference shares (including tax thereon)
-
Profit/ (Loss) for Earning per share (5,073,206)
Earnings per Share (EPS) (101.46)
8. Balances shown under Loans and Advances Creditors and Advances to suppliers are
subject to confirmation and reconciliations.
9. There are no micro and small enterprises to which the company owes dues which are outstanding for more than 45 days as at March 31 2010. This information as required to be disclosed under the Micro Small and Medium Enterprises Development Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.
GMR Rajahmundry Energy Ltd Schedule 9
10. Segment Reporting The company is engaged primarily in the business of setting and running of Power plant. As the basic nature of the activities is governed by the same set of risk and returns these have been grouped as a single business segment. Accordingly separate primary and secondary segment reporting disclosures as envisaged in Accounting
Standard (AS-17) on Segmental Reporting issued by the ICAI are not applicable to the present activities of the company.
11. Previous year figures are not given as the company was incorporated on 27th November,2009.
For on Behalf of Girish Murthy & Kumar, For On Behalf of Board
A V Satish Kumar Mr. B V N Rao Mr. Raaj Kumar Partner Director Director Chartered Accountants Date: Membership Number: 26526 Place: Bangalore. Date:
GMR Rajahmundery Energy Ltd
Cash flow statement for the year ended March 31, 2010
(Amount in Rupees)
For the Period ended 31st
March,2010
A.
Net Profit Before Tax and Extraordinary Items (5,073,206)
Preoperative Expenses -
Operating Profit Before Working Capital Changes
Cash generated from Operations (5,073,206)
Wealth Tax -
Fringe Benefit Tax -
Net Cash Flow from/ (used in) Operating Activities (5,073,206)
B. CASH FLOW FROM/ (USED IN) INVESTING ACTIVITIES
Purchase of Fixed Assets (2,194,465,182)
(Inclsive of Capital Advances)
Inflow/(outflow) from changes in trade and other
receivables (S Drs & Loans & Advs) (96,878,505)
Changes in Trade Payables 355,428,711
Expenditure during the construction period (3,291,006,779)
(including capital work in progress)
Net Cash from/ (used in) Investing Activities (5,226,921,755)
C. CASH FLOW FROM/(USED IN) FINANCING ACTIVITIES
Proceeds from share application money/(Refund) -
Proceeds from NCD 5,232,150,000
Proceeds fom issue of share capital 500,000
Net Cash from Financing Activities 5,232,650,000
Net increase in Cash and Cash Equivalents 655,039
Cash and Cash Equivalents at the beginning of the period -
Cash and Cash Equivalents at the end of the year 655,039
Notes:
1. The above cash flow statement has been prepared under the 'Indirect Method' as set out in the
Accounting Standard -3 on 'Cash Flow Statements' issued by the Institute of Chartered Accountants of India.
This is the Cash Flow Statement referred to
in our report of even date For and on behalf of the Board
A V Satish Kumar B.V.N.Rao Raaj Kumar
Partner Director Director
For and on behalf of
Girish Murthy & Kumar
Chartered Accountants
Membershim Number : 26526
Place: Bangalore Place: Bangaluru
Date: Date :
Particulars
CASH FLOW FROM/(USED IN) OPERATING ACTIVITIES
1 Registration Details
Registration No. U40107KA2009PLC051643 State Code : 20
Balance Sheet Date 31-March-2010
2 Capital Raised during the year (Amount in Rs.Millions)
Public Issue Nil Rights Issue Nil
Bonus Issue Nil Private Placement Nil
3 Position of Mobilisation and Development of Funds ( Amount in Rupees)
Total Liabilities 5,232,650,000 Total assets 5,232,650,000
Sources of Funds
Paid Up Capital - Reserves & Surplus -
Inter Corporate Deposit from GEL 5,232,150,000 Unsecured Loans -
Secured Loans -
Application of Funds
Net Fixed Assets (including capital work in
progress)
5,485,471,961 Investments -
Net Current Assets (257,895,167) Misc. Expenditure
Expenditure during construction period
pending allocation (net)
3,291,059,718
Accumulated Losses -
4 Performance of company ( Amount in Rupees)
Gross Income - Total Expenditure -
+ / - Profit / Loss Before Tax - + / - Profit / Loss After Tax -
Earning Per Share in Rs.(Basic & Diluted) - Dividend Rate % -
5 Generic Names of Three Principal Products / Services of Company (as per monetary terms)
Item Code No. : NA Product Description Hydro Electric Power
For and on behalf of the Board
B.V.N.Rao Raaj Kumar Prathiba Priya
Director Director Company Secretary
Place: Bangalore
GMR Rajahmundery Energy Ltd
BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE