Annexure XIV Continued… - Edelweiss

(1) We have a 51% ownership interest in the Raigarh Power Project. Consequently, we are only required to fund 51% of
the Estimated Cost to Completion.
In respect of our coal beneficiation plants, the amount deployed for our current projects under construction as
of December 31, 2010 is ` 1,163.17 million, and the estimated cost to completion is ` 4,340.00 million.
In Fiscal 2012, 2013 and 2014, we expect to spend ` 24,641.55 million, ` 43,048.90 million and ` 41,514.24
million, respectively, on our power projects under construction, implementation and development. For further
details about our power projects, please see the section titled "Our Business" on page 136 of this Draft Red
Herring Prospectus. We may also be required to make further investments to the extent of our proportional
ownership interests in Spectrum Power and Maruti Clean Coal and Power Limited within the following two to
three years. We estimate that these will amount to approximately ` 1,450.00 million and ` 1,080.00 million,
respectively. For further details, please see the section titled "Our Business – Other Investments" on page 173
of this Draft Red Herring Prospectus.
Cash equivalents decreased from ` 6,235.98 million in Fiscal 2010 to ` 3,518.74 million in the nine months
ended December 31, 2010. This decrease was primarily as a result of capital expenditures on our 270 MW
Korba Power Project, 50 MW Ratija Power Project and beneficiation plant expansions as well as investments
in Spectrum Power and SFI Parcels Private Limited.
Our business involves significant working capital requirements. We have in the past relied principally on
internal cash flow and other funds, affiliate loans, bank borrowings and advances from clients and we expect to
continue to meet our working capital requirements with a combination of bank borrowings and operating cash
flows. However, we cannot assure you that our coal beneficiation and power generation businesses will not
consume our available capital resources more rapidly than anticipated. We will be required to raise additional
capital to complete our planned projects in both our coal beneficiation and power generation businesses. We
will seek to obtain additional funding through additional issuances of equity and/or debt securities and/or by
securing new loans both at the level of our Company as well at the level of our subsidiaries and special
purpose vehicles.
Transactions with Associates and Related Parties
From time to time, we enter into transactions with companies which are controlled by members of our
Promoter Group and other related parties in the ordinary course of our business. For the nine months ended
December 31, 2010, 0.21% of the revenue and 9.33% of our total expenditures related to transactions with
related parties. The transactions with our related parties relate primarily to services provided to us by Sainik
Mining and Allied Services Limited and Hasdeo Coal Carriers for logistics services, Global Coal for purchase
of coal and Sindhu Holdings Limited, General Automobiles and Indus Automobiles for purchase of fuel and
spares, companies/firms owned by our Promoters and their relatives. We also entered into related party
transactions when we acquired our interests in Global Coal and Spectrum Power. For further details, please see
the section titled "Financial Statements - Related Party Transactions" on page F-50 of this Draft Red Herring
Prospectus.
Contractual Obligations
Debt obligations
The following table summarizes our contractual debt obligations, excluding payments of interest, as of
December 31, 2010 under our debt instruments.
Within 1
year
1 to 3
years
3 to 5
years
More
than 5
years
December 31, 2010
Total
(` in millions)
Term loans including equipment finance and vehicle loans
(both secured and unsecured)
INR Loans (1) ...................................................................... 2,099.33 1,748.18 1,731.95 4,090.24 9,669.71
Foreign Currency Loans (2) ................................................. 939.41 1,678.69 1,839.73 573.70 5,031.53
3,038.74 3,426.87 3,571.68 4,663.94 14,701.23
(1) These are fixed rate and floating rate notes and include equipment finance and vehicle loans and exclude working capital limit loans.
(2) These loans are denominated in U.S. dollars. In order to reduce our currency exchange risks, we currently have hedging
arrangements in relation to these foreign currency loans.
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