Annexure XIV Continued… - Edelweiss

For Fiscal 2008, our cash flow from financing activities was ` 1,545.40 million. This reflected a net increase in
secured loans of ` 331.07 million, a net decrease in unsecured loans of ` 29.11 million and an issue of share
capital of ` 1,526.99 (net of repayment of share application money). The increase in secured loans was a result
of additional borrowings in Fiscal 2008, primarily for new projects, including our 18 MW Jharsuguda Power
Project, our coal beneficiation plant and railway siding at Sambalpur and our Gevra coal beneficiation plant.
We used ` 247.13 million to pay interest and finance expenses and ` 36.38 million to pay a dividend and tax
thereon.
For Fiscal 2007, our cash flow from financing activities was ` 463.02 million. This reflected a net increase in
secured loans of ` 623.52 million, a net decrease in unsecured loans of ` 12.05 million and net proceeds from
share application money of ` 34.27 million. We used ` 150.92 million to pay interest and finance expenses and
` 29.30 million to pay a dividend and tax thereon.
Indebtedness
As of March 31, 2011, we had outstanding unsecured loans of ` 6.22 million and outstanding secured loans of
` 16,532.22 million, consisting of working capital loans of ` 1,223.96 million and term loans of ` 15308.26
million (including vehicle/equipment finance). Out of these, ` 11,054.44 million were rupee denominated term
loans (including vehicle/equipment finance) and ` 5,483.99 million were foreign currency denominated term
loans. As of March 31, 2011, we had fund based facilities of ` 21,155.65 million, of which ` 18,237.64 million
was outstanding.
Many of the financing arrangements are secured by a charge on current assets and fixed assets including plant
and machinery, land and other assets. Our sundry debtors and inventories are subject to charges created in
favour of specific secured lenders.
Contingent Liabilities
As of December 31, 2010, we did not have any contingent liabilities other than certain corporate and bank
guarantees issued on behalf of our Subsidiaries and Group Company, service tax matters of ` 80.79 million
that we are contesting, income-tax matters of ` 3.03 million that we are contesting and excise matters of `
60.46 million that we are contesting. For further details, please see Note 4 to Annexure IV to our restated
consolidated financial information included on page F-31 of this Draft Red Herring Prospectus.
Capital Expenditure
Capital expenditures represent our fixed assets plus changes in capital work in progress (i.e., expenses incurred
in relation to work in progress but not capitalised) and advance payments on account of capital expenditures.
Our total capital expenditures during Fiscal 2008, 2009, 2010 and the nine months ended December 31, 2010
were ` 1,606.76 million, ` 2,435.29 million, ` 4,180.27 million and ` 6,235.54 million respectively.
As of December 31, 2010, we had contractually committed ` 2,966.11 million to our capital expenditure
program.
The following table sets out the capital expenditure of projects and amounts spent as of December 31, 2010
and their respective estimated cost to completion.
Amount
deployed
as of
December 31,
2010
Estimated Cost
to Completion
Projects
(` in millions) (` in millions)
Korba Power Project (270MW thermal power project)...................................... 8,849.11 13,055.72
Ratija Power Project (50MW thermal power project) ........................................ 1,390.51 2,435.32
Chakabura Power Project (Phase II) (30MW thermal power project) ................ 50.30 1,520.87
Raigarh Power Project (600MW thermal power project) (1) ................................ 223.29 28,435.92
Sidhi Power Project (1,200MW thermal power project) .................................... 260.86 58,090.97
Ratija Power Project (Phase II) (50MW thermal power project)........................ - 2,392.97
Champa Power Project (1,200MW thermal power project) ............................... 4.06 60,723.83
Total ................................................................................................................. 10,783.03 166,655.60
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