Post on 27-Jul-2018
Accountants
Auditor's Report
The Shareholders of Himtal Hydropower Company Pvt. Ltd.
Financial statements and management's responsibility We have audited the accompanying financial statements of Himtal Hydropower Company Pvt. Ltd. which comprise the balance sheet as of March 31, 2010 statement of changes in Equity and Cash Flow Statement for the year then ended. 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.
Auditor's responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Nepal Standards on auditing and the auditing standards generally accepted in Nepal. 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 the management, as well as evaluating the overall financial statement presentation. We believe that our aUditprovides reasonable\:>asis for OUf opinion.
Report on the requirements ofCompany Act2063 We have obtained all information and explanations asked for, which to the best of our knowledge and belief were necessary for the purpose of our audit; the financial statements including balance sheet, cash flow statements and the statement ofchanges in equity have been prepared in accordance with the provisions of the Company Act, 2063 and they are in agreement with the books of accounts of the company and the accounts and records of the company are properly maintained in accordance with the prevailing laws.
During the course of our exanrinationof the books of accounts, we did not come across cases where the Board of Directors or any director or any office bearer of the company has acted contrary to the provisions of law or caused loss or damages to the company or committed any misappropriation.
Opinion In our opinion, the financial statements give a true and fair view of the financial position of the Company as of March 3 I, 2010, and its cash flows for the year then ended in accordance wijf 'Jepal Accounting Standards and Company Act 2063. ' -' .
L. D.Mahat Partner
Date: May 9, 2010 CSC&Co. Place: Kathmandu, Nepal Chartered Accountants
Himtal Hydro Power Company Private Limited 31st March 2010
Balance Sheet as at 31st March 2010
(Amount in NPR) (Amount in INR)
For Cash Flow
I. Sources of Funds:
1. Shareholders’ Funds
a) Capital 1 45,200,000 26,000,000 19,200,000 28,250,000 16,250,000
2. Share Application Money Pending Allotment 132,090,000 139,610,000 7,520,000 82,556,250 87,256,250
3. Reserve & Surplus 4,240,759 - 2,650,474 -
Total 181,530,759 165,610,000 15,920,759 113,456,724 103,506,250
II. Application of Funds:
1. Fixed Assets 2
a) Gross Block 7,868,384 6,352,785 (1,515,599) 4,917,740 3,970,491
b) Less : Depreciation 839,755 282,683 557,072 524,847 176,677
c) Net Block 7,028,629 6,070,102 4,392,893 3,793,814
d) Capital Work in Progress (including 3 233,952,509 240,981,138 65,160,794 71,230,896 (168,791,715) 146,220,318 150,613,211 40,725,496 44,519,310
capital advances) -
2. Current Assets, Loans and Advances
a) Cash and Bank Balances 4 299,073 15,418,645 15,119,572 186,921 9,636,653
b) Loans and Advances 5 2,347,015 90,453,363 88,106,348 1,466,884 56,533,352
2,646,088 105,872,008 1,653,805 66,170,005
Less : Current Liabilities and Provisions
a) Liabilities 6 61,473,898 10,321,649 51,152,249 38,421,186 6,451,031
b) Provisions 622,569 1,171,255 (548,686) 389,106 732,034
62,096,467 11,492,904 (50,603,563) 38,810,292 7,183,065
Net Current Assets (59,450,379) 94,379,104 (37,156,487) 58,986,940
Statement on Significant Accounting policies and Notes
to the Accounts 9
Total 181,530,759 165,610,000 113,456,724 103,506,250
(23,883,563) 0 0
The Schedules referred to above form an integral part of the Balance Sheet
This is the Balance Sheet referred to For and on behalf of the Board of Directors
in our report of even date.
Mr. Raaj Kumar Mr. B V N Rao
Director Director
Date: Date:
Place: Bangalore Place: Bangalore
Membership No.: 024951
Schedule31st March 2010 31st March 200931st March 200931st March 2010
Himtal Hydro Power Company Private Limited
Profit and Loss Account for the Year ended 31st March 2010
(Amount in INR)
Schedule Current year Previous Year
I. Income
Sales - -
Other Income 7 4,285,398 -
4,285,398 -
II. Expenditure
Administration expenses 8 611,305 -
Interest and Finance Charges - -
Depreciation - -
611,305 -
-
III. Profit/(Loss) Before Taxation 3,674,093 -
Provision for Taxation -
- Current 1,023,619 -
- Deferred - -
Fringe Benefit Tax - -
Wealth tax - -
IV. Profit/(Loss) After Taxation 2,650,474 -
Surplus/(Defecit) brought froward from Previous year
V. Available for Appropriation - -
VI. Available surplus carried to Balance Sheet 2,650,474 -
Statement on Significant Accounting policies and
Notes to the Accounts 9
This is the Profit and Loss Account referred to in our report of even date.
For and on behalf of the Board of Directors
Mr. Raaj Kumar Mr. B V N Rao
Director Director
Date: Date:
Place: Bangalore Place: Bangalore
Membership No.: 024951
The Schedules referred to above form an integral part of the Profit and Loss Account
Schedules forming part of the Balance Sheet as at 31st March 2010
(Amount in NPR) (Amount in INR)
Schedule 1: 31st March 2010 31st March 2009 31st March 2010 31st March 2009
Capital
Authorised Capital
45,00,000 Shares of NRs.100 each 450,000,000 450,000,000 281,250,000 281,250,000
450,000,000 450,000,000 281,250,000 281,250,000
Issued, subscribed and paid up -
(i) 5,00,000 Equity Shares of NRs. 100 each fully paid up 50,000,000 10,000,000 31,250,000 6,250,000
(out of above, 4,00,000 Equity shares NRs. 100 paidup are held by holding
company,GMR Energy Limited)
(ii) 4,00,000 Equity Shares of NRs.40 each partly paid up 16,000,000 - 10,000,000
Less: Call Unpaid of NRs. 60 on 80,000 Equity Shares (4,800,000) - (3,000,000) -
Total 45,200,000 26,000,000 28,250,000 16,250,000
Sch. Bal Sheet Page 1
Himtal Hydro Power Company Private Limited
Schedules forming part of the Balance Sheet as at 31st March 2010
Schedule 2
Fixed Assets
(Amount in INR)
As at 31st March
2009 Additions Deletions/Adju
stment
As at 31st March
2010
As at 31st
March 2009
Additions On
Deletions/Adju
stment
As at 31st
March 2010
As at 31st March
2010
As at 31st
March 2009
Land - 566,494 - 566,494 - - - - 566,494 -
Plant & Machinery 882,954 - - 882,954 52,848 97,082 - 149,930 733,024 830,106
Office Equipment 1,322,546 374,256 - 1,696,802 18,778 71,968 - 90,746 1,606,055 1,303,768
Computer Equipment 687,475 - - 687,475 69,563 112,355 - 181,918 505,557 617,912
Furniture & Fixtures 1,073,453 6,500 - 1,079,953 35,234 66,380 - 101,614 978,339 1,038,219
Vehicles 4,063 - - 4,063 254 385 - 639 3,424 3,809
Total 3,970,491 947,249 - 4,917,740 176,678 348,169 - 524,847 4,392,893 3,793,813
Description Gross Block Depreciation Net Block
Schedules forming part of the Balance Sheet as at 31st March 2010
Schedule 3
1st April 2009 Incurred during
the year
Capitalised/Adj
usted
Transferred to
P& L Account
31st March
2010
Capital Work in Progress
A) Assets under Construction - - - - -
(i) - - - - -
B) Incidental Expenditure During Construction Period -
Technical Consultancy Fee - 18,245,592 - - 18,245,592
Salaries, allowances and benefits to employees 4,670,759 6,606,152 - - 11,276,911
Contribution to provident fund and others - 291,009 - - 291,009
Staff welfare expenses 543,168 639,392 - - 1,182,559
Rent 703,983 671,493 - - 1,375,476
Rates and Taxes 1,352,525 2,493,713 - - 3,846,238
Repairs & Maintenance 598,713 536,244 - - 1,134,956
Insurance 60,234 45,437 - - 105,671
Consultancy & Professional Charges 29,561,046 67,136,126 - - 96,697,171
Auditors remuneration - - - - -
- Audit fees 39,688 - - 39,688 -
Travelling and conveyance 3,043,448 2,988,698 - - 6,032,146
Comunication Expenses 714,166 543,236 - - 1,257,402
Depreciation 176,677 348,170 - - 524,847
Office Maintanance 302,408 670,854 - - 973,262
Guest House Maintainance - 717,480 - - 717,480
Printing & Stationery 195,038 120,657 - - 315,695
Bank/ other finance charges - 54,474 - - 54,474
(Gain)/Loss on account of foreign exchange fluctuations (net) - (230,897) - - (230,897)
Training and Recruitment Expenses - 313,541 - - 313,541
Air Time Sharing Charges - 291,113 - - 291,113
Meetings & Seminars - 24,896 - - 24,896
Land and Other Development - 13,750 - - 13,750
Income Tax 732,034 - - 732,034 -
Miscellaneous Expenses - - - - -
- Books & Periodicals - 37,753 - - 37,753
- Advertisement Expenses - 34,828 - - 34,828
- Membership & Subscription - 16,688 - - 16,688
- Other Adminstrative - Miscellaneous Expenses 936,556 1,056,758 - - 1,993,314
Less: Interest income from deposit (2,904,946) (1,686,011) - (4,285,402) (305,554)
(ii) 40,725,496 101,981,142 - (3,513,680) 146,220,318
Total (i) + (ii) 40,725,496 101,981,142 - (3,513,680) 146,220,318
- - - - -
** : Refer to Note number 2 of the "Notes to Account", with regard to transfer of expenditure during construction period to CWIP and Profit and Loss Account
(Amount in INR)
Schedules forming part of the Balance Sheet as at 31st March'2010
(Amount in NPR) (Amount in INR)
Schdule4: 31st March 2010 31st March 2009 31st March 2010 31st March 2009
Cash and Bank Balances
Cash and Cheques on Hand 28,834 10,788 18,021 6,743
Balances with scheduled banks
- On Current accounts 270,240 15,407,856 168,900 9,629,910
Total 299,073 15,418,645 186,921 9,636,653
(Amount in NPR)
Schdule 5: 31st March 2010 31st March 2009 31st March 2010 31st March 2009
Loans & Advances
(Unsecured and considered good,unless otherwise stated)
Advances recoverable in cash or in kind or for value to be received 2,347,015 90,453,363 1,466,884 56,533,352
Total 2,347,015 90,453,363 1,466,884 56,533,352
(Amount in NPR) (Amount in INR)
Schedule 6: 31st March 2010 31st March 2009 31st March 2010 31st March 2009
Current Liabilities and Provisions
A. Liabilities
Sundry creditors:
Dues to other than Micro and small scale industrial undertakings 41,679,070 8,541,963 26,049,419 5,338,727
Other liabilities 19,794,828 1,779,686 12,371,767 1,112,304
Total 61,473,898 10,321,649 38,421,186 6,451,031
B. Provisions
Provisions-WT - - -
Provision for Employees Benefit 39,415 - 24,635 -
PROVSNS O/S EXPS 278,788 - 174,243 -
Provision for Tax 304,366 1,171,255 190,228 732,034
Total 622,569 1,171,255 389,106 732,034
Sch. Bal Sheet Page 2
Schedules forming part of the Profit and Loss Account for the year ending on 31st March'2010 (Amount in NPR) (Amount in INR)
Schedule 7: Current Year Previous Year Current Year Previous Year
Other Income
Rent income 76,083 - 47,552 -
Interest income on loan 6,780,555 - 4,237,847 -
Total 6,856,637 - 4,285,398 -
(Amount in NPR) (Amount in INR)
Schedule 8: Current Year Previous Year Current Year Previous Year
Administration Expenses **
Donation 369,309 - 230,818 -
Audit Fees 218,875 - 136,797 -
Business promotion 389,904 - 243,690 -
Total 978,088 - 611,305 -
** : Refer to Note number 2 of the "Notes to Account", with regard to transfer of expenditure during construction period to CWIP and Profit and Loss Account
Sch. Bal Sheet Page 3
1
Himtal Hydro Power Company Pvt. Ltd. Chakupat, Lalitpur, Nepal
SCHEDULE- 10
SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS For the period ended March 31, 2010
1. Basis of Preparation
The balance sheet, and cash flows, together with the accounting policies and notes (Financial Statement) of the Company as at 31 March 2010 and for the period from April 01, 2009 till March 31, 2010 comply with the generally accepted accounting principles and Nepal Accounting Standards except otherwise stated.
The financial statements are presented on a historical cost basis and the presentation requirements of the Companies Act 2063.
2. Use of estimates The preparation of the financial statements in conformity with generally accepted accounting principles ("GAAP") and Nepal Accounting Standard requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of balance sheet. Actual amount could differ from those estimates. Any differences from those estimates are recorded in the period in which they are identified.
3. Comparative Information The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. Figures of previous year have been regrouped/rearranged wherever necessary to make the same comparable with the current year figure. However, as the project is in pre operating stage, current year figures are cumulative figures from July 17, 2007 to till date.
4. Fixed Assets Fixed Assets are stated at cost of acquisition less depreciation. Cost of acquisition is inclusive
of freight, duties, levies and all incidentals attributable to bringing the asset to its working condition.
5. Depreciation Depreciation is provided on straight line method at the rates specified under Schedule XIV to the Indian Companies Act, 1956.
6. Foreign currency transactions All foreign currency transactions are accounted for at the exchange rates prevailing on the date of such transactions.
7. Provision for Taxation Provision for taxation is made as per the provision of Income Tax Act, 2058 (2002AD).
8. Committed cost of contract Details of committed costs of running contracts are as follows:
9. Round off Decimal figures are rounded off to the nearest rupees.
NOTES TO ACCOUNTS
1. Nature of Business: Himtal Hydropower Co. Private Limited is promoted by GMR Energy Limited, the holding company, to develop and operate 600MW Hydro based power project in Marshyandi River, Lamjung and Manag District. The company is in the process of setting up of the project. The Company hitherto was grouping and disclosing all the expenditure during construction stage pending allocation under 'Expenditure during Construction Period, Pending Allocation (Net)'. During the year the Company for the first time has drawn the profit and loss account and accordingly out of the Total “Expenditure During Construction Period Pending Allocation (Net) as on 31st March, 2009 Rs.65,160,794/- an amount of Rs.6,39,26,039/- directly attributable to the cost of construction has been transferred to “Capital Work in Progress” and the remaining amount of Rs. 1,234,755/- has been charged to the Profit and Loss Account under the relevant heads of account, the details of which are given below:
Runnig Contracts Total Value
as per Contract
Amount paid till date
Balance
Contractor Name Purpose NPR NPR NPR
East Management Drilling work
9,718,000
7,746,122
1,971,878
SchEMES EIA and EMP Studies
3,627,503
2,539,252
1,088,251
SchEMES Revised EIA and EMP Studies
103,500
51,750
51,750
ADM Carto Survey Expenese
5,281,789
5,281,789
-
ADM Carto Survey Expenese
435,129
435,129
-
Himal Hydro and General Construction Drift Tunnel
20,340,024
12,637,165
7,702,859
Himal Hydro and General Construction Drift Tunnel
2,369,622
2,251,140
118,481
Coyne et Billier Preparation of DPR
46,669,704
33,292,098
13,377,606
Nepal Electricity Authority Geo Physical
1,397,500
1,335,370
62,130
Aadhar Engineering and Consultancy
Construction Material Survey
2,558,960
924,810
1,634,150
GMR Consulting Serivce Pvt. Ltd
Techinical Service Agreement
81,812,000
24,877,575
56,934,425
Total
174,313,730
91,372,199
82,941,531
Note: The Contract with Coyne et Billier is Euro 421,865 excluding VAT, exchange rate as on 31st Dec is Rs 108.06 per Euro. Note: The Contract with GMR Consulting Serivce Pvt. Ltd is USD 1,000,000 excluding VAT exchange rate as on 31st December is Rs 72.40 per USD.
Himtal Hydro Power Company Private Limited
Cash flow statement for the Year ended 31st March 2010
(Amount in INR)
For the Year ended 31st
March 2010
For the Year ended
31st March 2009
A. CASH FLOW FROM OPERATING ACTIVITIES
Net profit / ( Net loss) Before Tax and Extraordinary Items 2,650,474 -
Adjustments for:
Depriciation 348,170 176,677
Priliminary Expneses writtent off - -
Interest Expenses - -
Provision - -
Loss on sales of Fixed Assets - -
Profit on sale of fixed assets - -
Cash flow prior to adjustment CA/CLs
Decrease in current assets 55,234,941 (55,446,773)
Increase in current labilities 31,627,227 6,970,471
Cash generated from Operations 89,860,812 (48,299,625)
a. Payment of Interest - -
b. Payment of Tax (168,474) (470,984)
Net Cash Flow From Operating Activities 89,692,339 (48,770,609)
B. CASH FLOW FROM INVESTING ACTIVITIES
Interest / Dividend Received - -
Increase / (Decrease ) in loan received and deposit - -
Securities sales / ( Investment) - -
Expenidutre during construction period pending - -
allocation decrease ( Increase ) - -
Fixed Assets sales ( Purchase ) (Inclusive of capital Advances) (106,442,071) (27,993,988)
Net cash flow from Investing Activites (106,442,071) (27,993,988)
C. CASH FLOW FROM/(USED IN) FINANCING ACTIVITIES
Share issue ( Except bonuse share ) 12,000,000 -
Long term loan ( Paid ) - -
Divident distrubution - -
Share applicaton Money (4,700,000) 85,500,000
Net Cash used in Financing Activities 7,300,000 85,500,000
Net increase/(decrease) in Cash and Cash Equivalents (A+B+C) (9,449,733) 8,735,403
Cash and Bank balance at the beginning of the year 9,636,653 901,250.00
Cash and bank balance at the end of the year 186,920 9,636,653
Notes:
1.The Above Cash Flow statements 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 Nepal.
2.Previous year's figures have been regrouped and reclassified to confirm to those of the current year.
This is the Balance Sheet referred to in our report of even date.
For and on behalf of the Board of Directors
Mr. Raaj Kumar Mr. B V N Rao
Director Director
Date: Date:
Place: Bangalore Place: Bangalore
Membership No.: 024951
Particulars
Amount Transferred to Profit and Loss Account:
Particulars Amount
Audit Fees 63,500
I Tax 1,171,255
Donation -
Total 1,234,755