2.     Changes in accounting policy and disclosure

The accounting policies adopted are consistent with those of the previous financial year except for the adoption of new standards as of 1 April 2015, noted below:

The Group has adopted the following new standards and amendments to standards, including any consequential amendments to other standards, with a date of initial application of 1 April 2015.

·      IFRIC 21 Levies : IFRIC 21 clarifies that an entity recognises a liability for a levy when the activity that triggers payment, as identified by the relevant legislation, occurs. For a levy that is triggered upon reaching a minimum threshold, the interpretation clarifies that no liability should be anticipated before the specified minimum threshold is reached. Retrospective application is required for IFRIC 21. This interpretation has no impact on the Group as it has applied the recognition principles under IAS 37 Provisions, Contingent Liabilities and Contingent Assets consistent with the requirements of IFRIC 21 in prior years.

·      Amendments to IAS 19 Defined Benefit Plans: Employee Contributions: IAS 19 requires an entity to consider contributions from employees or third parties when accounting for defined benefit plans. Where the contributions are linked to service, they should be attributed to periods of service as a negative benefit. These amendments clarify that, if the amount of the contributions is independent of the number of years of service, an entity is permitted to recognise such contributions as a reduction in the service cost in the period in which the service is rendered, instead of allocating the contributions to the periods of service. This amendment is effective for annual periods beginning on or after 1 February 2015. This amendment has no impact on the Group, since none of the entities within the Group has defined benefit plans with contributions from employees or third parties.

·      Annual Improvements 2010-2012 Cycle: In the 2010-2012 annual improvements cycle, the IASB issued seven amendments to six standards, which included an amendment to IFRS 13 Fair Value Measurement. The amendment to IFRS 13 is effective immediately and, thus, for periods beginning at 1 February 2015, and it clarifies in the Basis for Conclusions that short-term receivables and payables with no stated interest rates can be measured at invoice amounts when the effect of discounting is immaterial. This amendment to IFRS 13 has no impact on the Group.

·      Annual Improvements 2011-2013 Cycle: In the 2011-2013 annual improvements cycle, the IASB issued four amendments to four standards, which included an amendment to IFRS 1 First-time Adoption of International Financial Reporting Standards. The amendment to IFRS 1 is effective immediately and, thus, for periods beginning at 1 January 2015, and clarifies in the Basis for Conclusions that an entity may choose to apply either a current standard or a new standard that is not yet mandatory, but permits early application, provided either standard is applied consistently throughout the periods presented in the entity's first IFRS financial statements. This amendment to IFRS 1 has no impact on the Group, since the Group is an existing IFRS preparer.

3.     Acquisition and Dilution - change in non-controlling interest without change in control

a.     Acquisition and dilution in KSK Energy Ventures Limited

During the previous year ended 31 March 2015, the Group has issued 80,808,080 warrants of face value of Rs. 10 (US $ 0.16) each in KSK Energy Ventures Limited ('KEVL'), an Indian Listed subsidiary to KSK Power Holdings Limited ("KPHL") with an option to apply for and be allotted equivalent number of equity shares of the face value of Rs 10 (US $ 0.16) each at a premium of Rs. 89 (US $ 1.45) each on a preferential basis.

Pursuant to above, during the year ended 31 March 2016, KPHL acquired 1,736,580 shares of KSK Energy Ventures Limited ('KEVL'). Further, Group has sold 1,087,511 equity shares to non - controlling interest. Pursuant to this the economic interest of the Group in KEVL has decreased from 68.30 percent to 68.17 percent resulting in a 0.13 percent decrease in Group's controlling interest in subsidiary without loss of control. The aforesaid transaction is accounted as an equity transaction, and accordingly no gain or loss is recognised in the consolidated income statement. An amount of US $ 772 by which the non-controlling interest is adjusted and debited to 'other reserve' within consolidated statement of changes in equity and attributed to the owners of the Company.

b.      Acquisition in KSK Mahanadi Power Company Limited

During the year ended 31 March 2016, the Group has issued additional 112,000,000 equity shares in KSK Mahanadi Power Company Limited ("KMPCL") to KSK Energy Ventures Limited ("KEVL") and 273,330,000 equity shares to KSK Energy Company Private Limited ("KECPL") at a face value of Rs 10 (US $ 0.16) at par and 137,662,943 equity shares in KMPCL held by KSK Energy Limited ("KEL") has been transferred to KEVL

Pursuant to above, the economic interest of the Group in KMPCL increased by 0.81 percent in a subsidiary without loss of control. The aforesaid transaction is accounted as an equity transaction, and no gain or loss is recognised in the Consolidated income statement.  Pursuant to this an amount of US $ 259 by which the non controlling interest is adjusted, is credited to 'other reserve' within consolidated statement of changes in equity and attributed to the owners of the company.

c.      Dilution in KSK Dibbin Hydro Power Private Limited

During the year ended 31 March 2016, the Group has issued additional 12,650,000 equity shares in KSK Dibbin Hydro Power Private Limited ("KDHPPL") to North Eastern Electric Power Corporation Limited (NEEPCO) at face value of Rs 10 (US $ 0.16) each.

Pursuant to above, the economic interest of the Group in KDHPPL decreased from 55.33 percent to 47.72 percent resulting in 7.61 percent decrease in Group's controlling interest in a subsidiary without loss of control. The aforesaid transaction is accounted as an equity transaction, and no gain or loss is recognised in the consolidated income statement.  The difference of US $ 137 between the fair value of the net consideration received (US $ 1,931) and the amount by which the non-controlling interest are adjusted (US $ 1,794), is credited to 'Other reserve' within consolidated statement of changes in equity and attributed to the owners of the company.

d.      Dilution of KSK Wind Power Aminabhavi Chikodi Private Limited

During the year ended 31 March 2016 , the Group has transferred 1,800,000 equity shares of Rs 10/- each (US $ 0.16) in KSK Wind Power Aminabhavi Chikodi Private Limited ("KWPACPL") held by KSK Green Energy Pte Limited ("KGEPL") to KSK Energy Ventures Limited ("KEVL") at a face value of Rs 10 (US $ 0.16) at premium of Rs 90     (US $ 1.37) each per share.

Pursuant to above, the economic interest of the Group in KWPACPL decreased from 100 percent to 77.73 percent resulting in a 22.27 percent decrease in Group's controlling interest in a subsidiary without loss of control. The aforesaid transaction is accounted as an equity transaction, and no gain or loss is recognised in the consolidated income statement.  Pursuant to this an amount of US $ 266 is debited to 'other reserve' within consolidated statement of changes in equity and attributed to the owners of the company. 

e.      Dilution in Raigarh Champa Rail Infrastructure Private Limited

During the year ended 31 March 2016, the Group has transferred 65,018,090 equity shares of Rs 10 (US $ 0.16) at par in Raigarh Champa Rail Infrastructure Private Limited ("RCRIPL") held by KSK Energy Company Private Limited ("KECPL") to KSK Mahanadi Power Company Limited ("KMPCL")

Pursuant to above, the economic interest of the Group in RCRIPL decreased by 13.70 percent in a subsidiary without loss of control. The aforesaid transaction is accounted as an equity transaction, and no gain or loss is recognised in the consolidated income statement.  Pursuant to this an amount of US $ 269 by which the non-controlling interest is adjusted debited to 'other reserve' within consolidated statement of changes in equity and attributed to the owners of the company.

f.       Dilution of KSK Water Infrastructure Private Limited  

During the year ended 31 March 2016 , the Group has transferred 40,277,990 equity shares of Rs 10 (US $ 0.16) at par in KSK Water Infrastructure Private Limited ("KWIPL") held by KSK Energy Company Private Limited ("KECPL") to KSK Mahanadi Power Company Limited ("KMPCL")

Pursuant to above, the economic interest of the Group in KWIPL decreased by 10.03 percent in a subsidiary without loss of control. The aforesaid transaction is accounted as an equity transaction, and no gain or loss is recognised in the Consolidated income statement.  Pursuant to this an amount of US $ 156 by which the non-controlling interest is adjusted credited to 'other reserve' within consolidated statement of changes in equity and attributed to the owners of the company.

4.    Investments and other financial assets

Financial assets at fair value through profit or loss

The Group has invested into short-term mutual fund units and equity securities in various companies being quoted on Indian stock market which are designated as held for trading. The fair value of the mutual fund units and equity securities are determined by reference to published data.

Available-for-sale investment

The Group has investments in listed equity securities of various companies being quoted on the Indian and London stock markets respectively. The fair value of the quoted equity shares are determined by reference to published data. The Group also holds non-controlling interest (1%-25%) in unlisted entities which are in the business of power generation and allied projects. The Group designated these quoted and unquoted equity shares as available-for-sale investment in accordance with the documented investment strategy of the Group to manage and evaluate performance of the equity shares on fair value basis. The fair value of unquoted ordinary shares has been estimated using a relative valuation using price earnings ratio / book value method. The valuation requires management to make certain assumptions about the inputs including size and liquidity.

Deposit with banks

This represents the deposits with the bank with the maturity term of more than twelve months from the reporting date.

Derivative assets

A derivative asset includes currency option contracts and currency forward contracts carried at fair value. Fair value of currency option is determined by independent valuer which is the counterparty in the contracts. Fair value of currency forward is determined by mark to market value of forward on the date of financial position.

Loans and receivables

This primarily includes inter-corporate deposits of US $ 9,313 (2015: US $ 7,852), deferred loan origination costs                   US $ 2,496 (2015: US $ Nil), security deposit US $ 54,925 (2015: US $ 40,809), advance for investments US $ 1,603 (2015: US $ 2,492) and other financial assets US $ 6,632 (2015: US $ 15,259).

Loans to and receivables from Joint Venture partner

This primarily includes the investment in debentures in the joint operations, inter corporate deposit to joint operations and redeemable preference share capital held in the joint operations.

Loans to and receivable from subsidiaries

Loans to and receivable from subsidiary represents inter-corporate deposits given by the Company to its wholly owned subsidiaries.

Investment in subsidiaries

Investment primarily includes unquoted investments in subsidiaries in the Company financial statements. The Company has invested in 139,244,601 equity shares (2015: 139,244,601) in KEL, 12,000 equity shares (2015: 12,000) in KASL, Nil equity shares (2015: 100,000,000) in GCSP (formerly KGPP), 84,146,843 equity shares (2015: 84,146,843) in KGEPL and 1 equity share (2015: 1) in KSVP totalling to US $ 226,842 (2015: US $ 227,126).

Investment and other financial assets amounting to US $ 99,593 (2015: US $ 113,076) for the Group is subject to security restrictions (refer note 7).

Impairment of financial assets

During the year ended 31 March 2016, the Group's available-for-sale financial asset of US $ 170 (2015: US $ 693) and loans and receivable of US $ 16,481 (2015: US $ 25,095) were collectively impaired.

During the year ended 31 March 2016, the Company's loans and receivable of US $ 912 (2015: US $ Nil) were collectively impaired and written off.

5.    Cash and short-term deposits

Cash and short-term deposits comprise of the following:

Short-term deposits are made for varying periods, depending on the immediate cash requirements of the Group.

The Group has pledged its short-term deposits amounting US $ 106,739 (2015: US $ 157,239) in order to fulfil collateral requirements (refer note 7).

For the purpose of cash flow statement, cash and cash equivalent comprise:

¹Include deposits pledged for availing credit facilities from banks and deposits with maturity term of three months to twelve months.

6.    Issued share capital

        Share capital

        The Company presently has only one class of ordinary shares. For all matters submitted to vote in the shareholders meeting, every holder of ordinary shares, as reflected in the records of the Company on the date of the shareholders' meeting, has one vote in respect of each share held. All shares are equally eligible to receive dividends and the repayment of capital in the event of liquidation of the Company.

The Company has an authorised share capital of 500,000,000 equity shares (2015: 500,000,000) at par value of US $ 0.002 (£ 0.001) per share amounting to US $ 998.The issued and fully paid up number of shares of the Company is 175,308,600 (2015: 175,308,600). During the year Company has not issued/ bought back any ordinary share. 

        Share application money represents amount received from investors / parents pending allotment of ordinary shares.

        Reserves

        Share premium represents the amount received by the Group over and above the par value of shares issued. Any transaction costs associated with the issuing of shares are deducted from share premium, net of any related income tax consequences.

        Revaluation reserve comprises gains and losses due to the revaluation of previously held interest of the assets acquired in a business combination.

        Foreign currency translation reserve is used to record the exchange difference arising from the translation of the financial statements of the Group entities and the same is not distributable.

Capital redemption reserve represents statutory reserve required to be maintained under local law of India on account of redemption of capital.  The reserve is credited equivalent to amount of capital redeemed by debiting retained earnings and the same is not distributable.

        Other reserve represents the difference between the consideration paid and the adjustment to net assets on change of controlling interest, without change in control and the excess of the fair value of share issued in business combination over the par value of such shares. Any transaction costs associated with the issuing of shares by the subsidiaries are deducted from other reserves, net of any related income tax consequences. Further, it also includes the loss / gain on fair valuation of available-for-sale financial instruments and re-measurement of defined benefit liability net of taxes and the same is not distributable.

Retained earnings mainly represent all current and prior year results as disclosed in the consolidated income statement and consolidated other comprehensive income less dividend distribution.

7.    Loans and borrowings

The loans and borrowings comprise of the following:

Total debt of US $ 3,323,802 (2015: US $ 3,244,549) comprised:

§ Long-term "project finance" loans of the Group amounting US $ 2,793,569 (2015: US $ 2,760,503) is fully secured on the property, plant and equipment and other assets of subsidiaries and joint operations that operate power stations, allied services and by a pledge over the promoter's shareholding in equity and preference capital of some of the subsidiaries and joint operations and corporate guarantee provided by the Company.

§ The short term loans taken by the Group are secured by the corporate guarantee provided by the Company, fixed deposits of the Group and by pledge of shares held in the respective entities.

§ Buyer's credit facility is secured against property, plant and equipment and other assets on pari-passu basis, pledge of fixed deposits and corporate guarantee of KEVL. These loans bear interest at LIBOR plus 25 to 300 basis points.

§ A number of the facilities that are due to expire at 31 March 2017 are in the process of being extended and have a rollover clause in a number of cases.

§ Cash credit and other working capital facilities are fully secured against property, plant and equipment and other assets on pari-passu basis with other lenders of the respective entities availing the loan facilities.

§ Redeemable preference shares are due for repayment within 13 years.

§ Debentures are secured on the property, plant and equipment and other assets of subsidiaries that operate power stations, allied services and by a pledge over the promoter's shareholding in equity capital of some of the subsidiaries.

Long-term "project finance" loan contains certain restrictive covenants for the benefit of the facility providers and primarily requires the Group to maintain specified levels of certain financial ratios and operating results. The terms of the other borrowings arrangements also contain certain restrictive covenants primarily requiring the Group to maintain certain financial ratios. As of 31 March 2016, the Group has complied with the relevant significant covenants, while there are few financial ratio which are not met and management is in discussion with the lenders for addressing the same. However, these does not have any significant impact on the Group..

As at 31 March 2016, the Group has available US $ 969,740 of undrawn long term committed borrowing facilities.

The fair value of borrowings at 31 March 2016 was US $ 3,323,802 (2015: US $ 3,244,549). The fair values have been calculated by discounting cash flows at prevailing interest rates.

The interest-bearing loans and borrowings mature as follows:

8.    Other financial liabilities

9.    Segment information

       The Group has adopted the "management approach" in identifying the operating segments as outlined in IFRS 8. Management has analysed the information that the chief operating decision maker reviews and concluded on the segment disclosure.

       For management purposes, the Group is organised into business units based on their services and has two reportable operating segments as follows:

·      Power generating activities and

·      Project development activities

       Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss which in certain respects, as explained in the table below, is measured differently from operating profit or loss in the Consolidated financial statements. Group financing (including finance costs and finance income) and income taxes are managed on a Group basis and are not allocated to operating segments. There is only one geographical segment as all the operations and business is carried out in India.

Notes to segment reporting:

(a)   Inter-segment revenues are eliminated on consolidation.

(b)   Profit / (loss) for each operating segment does not include finance income and finance costs of US $ 26,336 and US $ 296,470 respectively (2015: US $ 19,135 and US $ 219,810 respectively).

(c)   Segment assets do not include deferred tax asset of US $ 141,327 (2015: US $ 128,104), financial assets and other investments US $ 99,923 (2015: US $ 103,263), short-term deposits with bank and cash US $ 8,551 (2015: US $ 15,428), and corporate assets US $ 32,317 (2015: US $ 29,072).

(d)   Segment liabilities do not include deferred tax US $ 37,596 (2015: US $ 33,777), current tax payable US $ 1,243 (2015: US $ 1,147), interest-bearing current and non-current borrowings US $ 3,323,802 (2015: US $ 3,244,549), derivative liabilities US $ 29,337 (2015: US $ 32,821) and corporate liabilities US $ 153,112 (2015: US $ 105,523).

(e)   The Company operates in one business and geographic segment. Consequently no segment disclosures of the Company are presented.

(f)    Three customers in the power generating segment contributing revenues of US $ 473,844 accounted for 70.02% (2015: One customers in the power generating segment contributes revenues of US $ 196,893 accounting for 51.52%) of the total segment revenue.

10. Finance costs

Finance costs comprise:

¹Borrowing cost capitalised during the year amounting to US $ 154,737 (2015: US $ 240,579) to property, plant and equipment at an effective interest rate of 15.25% (2015: 14.53%).

² Impairment of financial assets relates to available-for-sale financial asset of US $ 170 (2015: US $ 693).

³Net loss on financial instrument at fair value through profit or loss above relates to foreign exchange forward contracts, currency options and interest rate swap that did not qualify for hedge accounting.

11. Finance income

The finance income comprises:

12. Tax income / (expense)

The major components of income tax for the year ended 31 March 2016 and 31 March 2015 are:

13. Related party transactions