Growth
Delivery
Performance
Annual report and accounts 2014
OPG Power Ventures Plc Annual report and accounts 2014 OPG Power Ventures 
Plc is developing 
and operating power 
plants in India. 
The Company is committed to building 
shareholder value and to being the first choice 
provider of reliable, uninterrupted power at 
competitive rates to its customers. OPG is listed 
on the Alternative Investment Market of the 
London Stock Exchange (AIM:OPG).
Night view of Chennai site showing operating units Chennai I, II and III 01    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
Revenue 
(£m)
FY11 FY12 FY13 FY14
21.58
38.48
56.19
98.81
100
80
60
40
20
0
Earnings per share
(pence)
5
4
3
2
1
0
2.13
1.71
2.48
4.14
FY11 FY12 FY13 FY14
PBT (pre-exceptional items)
(£m)
20
15
10
5
0
6.34
8.84
13.23
19.54
FY11 FY12 FY13 FY14
EBITDA
(£m)
35
30
25
20
15
10
5
0
10.08
11.30
17.74
30.97
FY11 FY12 FY13 FY14
Highlights
Strategic report 
01 Highlights
02 Solid performance
04 OPG at a glance
05 Key performance indicators
06 Market overview
10 Business model
12 Chairman’s statement
14 Chief Executive’s review
16 Delivery and Growth through:  
Performance
18 Credibility through: Track record
20 Self-sufficiency through: Expertise
22 Operational review
24 Principal risks
26 Financial review
30 Sustainability report
Directors’ report
34 Board of Directors
36 Corporate governance report
39 Directors’ remuneration report
42 Directors’ report
44 Statement of Directors’ 
responsibilities
Financial statements
45 Independent Auditors’ report
46 Consolidated Statement of 
Comprehensive Income
47 Consolidated Statement of 
Financial Position
48 Consolidated Statement of 
Changes in Equity
50 Consolidated Statement of 
Cash Flows
51 Notes to the Consolidated 
Financial Statements
74 Corporate Directory
75 Definitions and Glossary
Financial highlights
 > Revenues of £98.81m up 76% from £56.19m
 > Pre-tax profits of £17.95m up 70% from £10.54m
 > EBITDA of £30.97m up from £17.74m and EBITDA margin of 31%
 > EPS of 4.1 pence up 71% from 2.4 pence 
 > Cash & cash equivalents of £22.8m (including available-for-sale investments of 
£16.2m) and gearing of 52%
Operational highlights
 > 80 MW Chennai III commissioned in June 2013, ahead of schedule and within 
budget
 > 160 MW Chennai IV expanded to 180 MW
 > £128m invested during the year in projects
 > Operational performance well ahead of industry average 02    OPG Power Ventures Plc Annual report and accounts 2014
0
20
40
60
80
100
PLF – Consistently above Industry Average
%
FY11 FY12 FY13 FY14
81%
67%
62%
61%
n Chennai I
n Chennai II
n Chennai III
 All India Private Sector
 (Thermal IPPs)
Solid performance
OPG continued to deliver its pipeline 
of projects under construction, 
increasing capacity from 190 MW to 
270 MW. Performance at its operating 
assets exceeded industry average.
Q1 FY2014:
 > 80 MW Chennai III construction 
completed and commissioned: 
Construction of key equipment and 
balance of plant completed in May 
2013. The unit was synchronised and 
fully operational within seven days 
and commenced commercial sales in 
June 2013. 
Q2 FY2014:
 > Coal contract for c.40% of total 
imported coal requirements: Coal 
contract until 30 June 2014. The free 
on board (‘FOB’) price was set at 
below spot prices.
 > Power Sale to TANGEDCO 
extended: Sales contract with Tamil 
Nadu State utility at Rs 5.50 per kWh 
until May 2014.
Chennai IV site Gujarat boiler unit II 03    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
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Annual Power Generation 
(million kWh)
329
648
932
1,840
2,000
1,500
1,000
500
0
FY11 FY12 FY13 FY14
Revenue 
(Rs m)
FY13 FY14
4,834
9,475
10,000
8,000
6,000
4,000
2,000
0
FY13 FY14
1,519
3,099
EBITDA
(Rs m)
3,500
3,000
2,500
2,000
1,500
1,000
500
0
FY13 FY14
903
1,850
PBT (pre-exceptional 
items) (Rs m)
2,000
1,500
1,000
500
0
Strong underlying performance 
Focused on  
delivery
Q3 FY2014:
 > High Plant Load Factors (‘PLF’) 
achieved: 100% average PLF 
achieved across units in the quarter.
 > 2 x 150 MW Gujarat progressing 
ahead of schedule: Hydro testing 
on one unit has been successfully 
completed.
Q4 FY2014:
 > Long-term Variable Tariff (‘LTVT’) 
Arrangement for 80 MW: Entered 
into a 15-year arrangement with 
TANGEDCO for supply of 74 MW, 
providing foreign exchange protection 
on imported coal.
 > Chennai IV: Chimney and power 
house building are complete and 
the boiler steam drum has been 
lifted into position.
Coal shed at Gujarat 04    OPG Power Ventures Plc Annual report and accounts 2014
800
600
400
200
0
MW
Aggregate generation capacity
FY14 IPO May 08 FY10 FY11 FY12 FY13 FY15
Expected
Source: Company
We are a producer of thermal power 
with a current operating capacity of 
270 MW. A further 480 MW is under 
construction with commissioning 
scheduled for FY15.
 270 MW in  
operation
77 MW Chennai I
77 MW Chennai II
80 MW Chennai III
25.4 MW Mayavaram
10 MW Waste heat
480 MW in  
development
180 MW Chennai IV
300 MW Gujarat
750
 
MW
A fast growing power business  
with operations in India
Chennai I, II, III, Waste heat
Chennai IV
Mayavaram
Gujarat
OPG at a glance
300 MW
450 MW 05    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
7
6
5
4
3
2
1
0
4.95 4.93
5.55
FY11 FY12 FY13 FY14
5.58
Average tariff realisation  
(Rs/kWh)
EBITDA
(£m)
35
30
25
20
15
10
5
0
10.08
11.30
17.70
FY11 FY12 FY13 FY14
30.97
Gearing
(%)
60
40
30
20
10
0
-10
-20
-30
-24
19
52
37
FY11 FY12 FY13 FY14
Cost of generation 
(Rs/kWh)
4
3
2
1
0
3.25
3.06
3.10
FY11 FY12 FY13 FY14
3.19
Earnings per share
(pence)
5
4
3
2
1
0
2.13
1.71
2.48
4.14
FY11 FY12 FY13 FY14
0
20
40
60
80
100
PLF 
(%)
 Chennai I     Chennai II     Chennai III
FY11 FY12 FY13 FY14
This is the average price realised per unit of power sold. 
The average tariff achieved for FY14 was Rs 5.55/kWh, 
similar to last year and was amongst the highest in 
the sector.
Earnings Before Interest, Taxes, Depreciation and 
Amortisation is a factor of volumes, prices and cost of 
production. This EBITDA measure is calculated by adjusting 
non-operational and exceptional items, depreciation 
and net finance cost. It is a measure of the Company’s 
operating profitability. EBITDA for FY14 was higher by 75% 
at £30.97m. (FY13: £17.74m) because of generation from 
Chennai III and a full year contribution from Chennai II. 
Gearing is a measure of net debt to shareholders’ equity 
plus net debt. The Group has net debt of £172.0m 
(FY13: £86.0m) and gearing of 52% (FY13: 37%).  
As development of projects proceeds, borrowings  
on projects increases and consequently the gearing.
The cost of fuel is the primary cost input in power plants. 
Cost of generation per kWh decreased by 4% to Rs 3.06 
in FY14 from Rs 3.19 in FY13.
Plant load factor measures the output of a power plant 
compared to the maximum output it could produce. 
Chennai III which was commissioned in June 2013 
achieved a PLF of 92% in its first year of operations. 
Chennai I and II also performed ahead of industry average 
at 96% and 99% PLF respectively.
This represents net profit after tax attributable to equity 
shareholders. In FY14, earnings per share were 4.14 pence.
Key performance indicators 06    OPG Power Ventures Plc Annual report and accounts 2014
(Billion kWh)
1,200
1,000
800
600
400
200
0
%
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Total
Western
Eastern
Northern
Southern
Tamil Nadu
Power deﬁcit in all regions (FY14)
n  Requirement (LHS)      n  Availability (LHS)    
n  Deﬁcit (RHS)
Source: CEA Mar 14
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
India (2011)
India (2012)
Brazil
 South Africa
China
Russia
US
India per capita consumption 
of electricity (kWh)
Source: CEA 2014, World Bank 2011
684 774
2,438
4,604
5,949
6,486
13,246
India (2013)
917
Market  
overview
Power Sector Review
Adequate supply, connectivity and reliability remains an 
issue with power cuts and blackouts still being a regular 
phenomenon in the country. 
The recently elected National Democratic Alliance (‘NDA’) 
government has brought a new sentiment. There is 
considerable expectation as power security is outlined  
as a priority.
Following the introduction of the Electricity 
Act 2003, the sector has witnessed a 
CAGR growth of c.5% in electricity 
generation with significant contribution 
from the private sector, over 100 GW of 
capacity added and several billion dollars 
of capital investment. However, in recent 
years the industry has faced several 
challenges and a weak economic climate. 
Adequate supply, connectivity and 
reliability remains an issue with power cuts 
and blackouts still being a regular 
phenomenon in the country. 
The recently elected NDA government has 
brought a new sentiment. There is 
considerable expectation as power 
security is outlined as a priority. 
Demand for power driven by high 
population and economic growth 
India’s installed power capacity stood at 
249 GW by the end of June 2014 making 
it the fifth largest power producer in the 
world. Despite this capacity, nearly 
300 million of its 1.2 billion population 
have no access to power and shortages 
persist across the country. This is reflected 
in its low per capita consumption of c.900 
kWh in FY2013, which is the lowest of the 
BRICS countries and below the world 
average of 3,045 kWh.
Installed capacity grew by 66 GW in the 
XIth plan (2007–12) and a further 42 GW 
was added until June 2014 in the XIIth Plan 
however power generation has not grown 
in line with installed capacity as the thermal 
power plants were operating at an annual 
average PLF of 66% in 2014 (2013: 70%).  
In November 2013, KPMG estimated nearly 
33 GW of new plants were operating below 
60% capacity due to fuel shortages. 
The XIIth and XIIIth five year plans target a 
capacity addition of 88GW and 95GW 
respectively but these targets remain a 
challenge as several projects currently 
await regulatory approvals or funding or 
coal linkages. In addition to capacity 
shortages, transmission systems require 
substantial investment to cope with 
additional supply. 
249
GW
Installed power capacity
Fifth largest power producer in the world
917
kWh
Per capita consumption (2013)  
lowest amongst BRICS 07    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
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500
400
300
200
100
0
Domestic and imported coal usage for power generation (Mt)
FY06 FY01 FY02 FY03 FY04 FY05 FY09 FY08 FY07 FY12 FY13 FY14 FY10 FY11
 Domestic coal     Imported coal
  Thermal
  Renewables
  Hydro
  Nuclear
Current energy mix FY14 (%)
68%
13%
17%
2%
Source: CEA
  Thermal
  Renewables
  Hydro
  Nuclear
Target energy mix FY17 (%)
64%
17%
16%
3%
Source: CEA
Tariffs currently not aligned with input 
costs
The electricity tariffs, i.e. the price at which 
power is sold in India are established by 
the State Distribution Companies 
(‘Discom’) and regulators and is a tiered 
pricing structure for different users. 
Typically, agriculture and rural supplies 
are heavily subsidised – even zero in 
some cases while industrial customers 
pay the highest rate. As a result there 
has been significant under recovery of 
costs over the years by the Discoms which 
has been compounded by transmission 
loss and power theft, leading to financial 
losses. A Financial Restructuring Package 
(‘FRP’) was introduced in 2012 to provide 
financial assistance to the Discoms with 
the condition of mandatory tariff review 
and investment in transmission & collection 
infrastructure to reduce technical and 
commercial losses. Several states have 
accepted the FRP and tariff rises were 
seen across many states in FY13. However 
there is yet to be full implementation.
In two recent cases, the Central Electricity 
Regulator directed State Utilities to 
compensate the power generators 
for increased coal costs suffered due to 
short supply of domestic coal which had 
to be substituted by more expensive 
imported coal.
These developments provide some indication 
that there may be a shift towards a more 
realistic pricing policy, both by generators 
and regulators, to factor in input costs.
Domestic coal supply falls short of 
target; Dependence on imported coal 
59% of India’s power generation is 
coal-based due to its large coal reserves. 
Domestic coal supplies are controlled 
by the state owned Coal India Limited 
(‘CIL ’). CIL produced 462 Mt compared 
to a target of 482 Mt in FY14. While 
production has consistently grown, it 
has fallen short of its target and India’s 
requirement. The lower production has 
been on account of delays in permitting 
mine expansions and constraints in 
rail capacity. 
CIL ’s target for FY15 is 507 Mt and it aims 
to increase this to 795 Mt by 2017 to meet 
the growth in coal power plants in the XIIth 
five-year plan. It has 146 projects under 
approval and a further 126 planned which 
are expected to contribute to the increase 
in production. It is also investing in the 
railway infrastructure to improve offtakes 
from mines. 171 Mt of coal was imported  
in FY14 up 18% from FY13. 
Global demand on the other hand has 
been weak due to subdued demand from 
China and USA’s move towards shale gas 
and renewables. Indian power producers 
were not able to realise the benefits of 
improved coal pricing last year due a to 
sharp depreciation in the Rupee. 
Renewables provides strong potential 
Although coal-based generation is expected 
to be the principal source for power due to 
its abundance and low cost of production, 
renewable power has gained importance as 
there is excellent potential to develop wind 
and solar and manage carbon emissions. 
Total renewable capacity as at May 2014 
was 32 GW of which wind contributed 
21 GW. Under the XIIth five-year plan, the 
Government’s target is to add 30 GW of 
renewable capacity. Favourable policies, 
both at Centre and State level to increase 
generation and offtake of power from 
renewable sources, availability of foreign 
capital and lower capital costs are 
expected to help achieve growth targets.  08    OPG Power Ventures Plc Annual report and accounts 2014
50
55
60
65
70
Source: Bloomberg
USD INR exchange rate
May 13
Mar 12
May 12
Jul 12
Sep 12
Nov 12
Jan 13
Mar 13
Jul 13
Sep 13
Nov 13
Jan 14
Mar 14
May 14
9.00
8.75
8.50
8.25
8.00
7.75
7.50
7.25
7.00
12
11
10
9
8
7
6
5
n  Repo Rate    n  CPI (RHS) Source: RBI & Gol
Interest rates and inﬂation (%)
Inﬂation % Rate %
Mar 13
Apr 13
May 13
Jun 13
Jul 13
Aug 13
Sep 13
Oct 13
Nov 13
Dec 13
Jan 14
Feb 14
Mar 14
Apr 14
May 14
120
100
80
60
40
20
0
69
64
59
54
49
44
Coal prices and currency movement
Mar 12
Apr 12
May 12
Jun 12
Jul 12
Aug 12
Sep 12
Oct 12
Nov 12
Dec 12
Jan 13
Feb 13
Mar 13
Apr 13
May 13
Jun 13
Jul 13
Aug 13
Sep 13
Oct 13
Nov 13
Dec 13
Jan 14
Feb 14
Mar 14
Apr 14
May 14
  Eco Coal       RB       NEWC       USD/INR (RHS)
USD/ton INR/USD
Source: RBI & Bloomberg
Market overview continued
Macro overview
Depreciation in Indian Rupee 
now stabilised
In August 2013, India saw one of the 
steepest falls in the Rupee-Dollar 
exchange rates from Rs 53.2 in January 
2013 to Rs 62.6 in September 2013. Since 
then the Rupee has appreciated to 59.1 in 
May 2014. 
This decline was mainly due to a high 
Current Account Deficit (‘CAD’) caused 
by foreign capital outflows, increased 
gold and oil imports and the Fed’s 
announcement of tapering of quantitative 
easing. The Reserve Bank of India took 
several measures such as curbing 
non-essential and gold imports, overseas 
investments and managing payments for 
oil imports, increasing Foreign Direct 
Investment (‘FDI’) limits in some sectors 
and reducing excess liquidity to restore 
the exchange rate. 
GDP 
There has been a marginal recovery in  
GDP from 4.5% in FY13 to 4.7% in FY14. 
The agriculture sector grew significantly at 
4% up from 1.4% due to a good monsoon 
but was offset by the lower growth in 
industries of 0.4%. Services sector 
remained stable at 7%. Consensus  
estimate for GDP for FY15 stands at c.5.5%. 
Inflation & interest rates
Inflation measured by Consumer Price 
Index (‘CPI’) inched upwards from about 
9% to nearly 11% before dropping to 8.3% 
in March 2014. Food inflation was at an all 
time high. The monetary policy key 
objective has been to rein in inflation and 
as such we have seen interest rates rise by 
75bps during the year to 8%. 09    OPG Power Ventures Plc Annual report and accounts 2014
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The new Government offers renewed 
optimism 
The Narendra Modi led BJP Government 
won elections in May 2014 with an 
overwhelming majority. Mr Modi has a 
track record of growth and development in 
Gujarat making it India’s fastest growing 
state which is expected by many to be 
replicated across the country. The new 
Government brings with it much hope of 
kick-starting the economy and a reversal of 
the last few years slowdown.
Its key objectives are briefly outlined below:
 > Achieve a target of fiscal deficit of 3% 
of GDP by 2016–17 and be kept below 
that level by focusing on exports and 
reducing dependence on imports
 > Reduce inflation: The new government 
will need to rein it in through supply side 
measures to enable Reserve Bank of 
India to cut interest rates to spur 
demand 
 > Revive economic growth and create 
jobs through huge public investments 
in infrastructure, like laying of roads, 
railways and connecting ports
 > Pledge to launch a ‘National multi-skill 
Mission’, do ‘skill mapping’ and also 
make secondary education universal
 > Boost manufacturing, revive SME 
sector, cut red tape and make 
environment clearances transparent  
and time bound
 > Financial sector reforms, ending  
‘tax terrorism’: BJP has committed to 
banking reforms, including reducing 
non-performing assets
 > Urbanisation and agriculture 
development
 > Dealing with corruption and black money
 > Revamp social welfare schemes 
and subsidies
Budget 2014: Power Sector
The Government believes that access to 
reliable electricity is key to achieving growth. 
The turnaround of Gujarat’s power sector 
under Mr Modi’s leadership provides for a 
successful model. The Government’s 
measures in the 2014 budget has been 
aimed to improve coal availability and 
boosting solar power generation both at a 
macro and micro level. 
Accelerated reforms 
The new government has created a single 
ministry for ‘Power and Energy’ covering 
coal, thermal, renewable and new power. 
The creation of a single body is expected 
to streamline the decision making process. 
Coal
Coal availability or the lack of it has been a 
major bottleneck for operating plants and 
plants to be commissioned. Plants have 
been operating at sub optimal levels due to 
domestic coal shortage. The key measures 
outlined in the Budget 2014 are 
 > Provide adequate quantities of coal 
to power plants which are already 
commissioned or would be 
commissioned by March 2015 to 
improve generation and progress 
pending projects
 > Rationalise coal linkages and optimise 
coal transport in order to reduce cost 
of power 
 > Approximately US$20m allocated 
towards Ultra Modern Super 
Critical Thermal Coal based technology 
 > Import duty on all types of coal 
rationalised to 2.5% and 2% Counter 
Veiling Duty
Availability of power for agriculture & 
rural through solar
The Budget seeks to increase solar power 
generation both at a macro and micro 
level. Measures announced are aimed 
at improving the availability of power to 
rural areas and agriculture sector and 
maximising the solar opportunity in the 
high insolation states. 
 > US$83m Ultra Modern Solar Power 
Projects in Rajasthan, Gujarat and 
Tamil Nadu  
 > US$80m to augment power supply to 
rural areas and for strengthening 
sub-transmission and distribution 
systems
 > US$67m for solar power driven 
agricultural pump sets and water 
pumping stations 
 > US$17m for the development of 1 MW 
Solar Parks on the banks of canals
 > Green Energy Corridor to facilitate 
evacuation of green power throughout 
the country 
 > Flat copper wire used for the 
manufacture of PV (photovoltaic) 
ribbons will be exempted from basic 
customs duty
 > A concessional basic customs duty of 
5% is also being extended to machinery 
and equipment required for setting up of 
a project for solar energy production 
Financial measures 
 > Extension of 10-year tax holiday for 
power undertakings which begin 
generation, distribution and transmission 
of power by 31 March 2017
 > Long-term foreign borrowing 
concessional rate of 5% withholding tax 
for interest payments.
 1 0  
year tax holiday
Extension to projects starting by 2017
88
GW
New capacity addition targeted by 2017 10    OPG Power Ventures Plc Annual report and accounts 2014
Developing in-house capabilities
Being responsible in everything we do
Proximity to ports
Coal f exibility
Supplier of choice to 
our customers for
uninterrupted
power
Competitive pricing              Modular expansion
Demand Superior returns
Business model
The Company aims to deliver shareholder value by being 
the first choice provider of reliable and uninterrupted 
power at competitive rates to its customers. Our strategy 
is to maximise performance of existing generation assets 
and to continually de-risk our project portfolio.
Ahead of the  
curve 11    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
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Coal f exibility
Competitive pricing              Modular expansion
Competitive pricing 
 > Power is sold to 
industrial and 
commercial 
customers and  
state utilities at an 
attractive price
Modular expansion 
 > Expansion of capacity  
is executed by building 
modular sizes and 
choosing technology  
and equipment which 
reduces operational risks
 > New projects and plants 
built on existing sites
Coal flexibility 
 > The boilers at our 
plants have been 
uniquely designed to 
burn coal sourced 
either domestically 
(India) or imported 
and can be burnt 
singly or in any mix 
of the two 
Being responsible in 
everything we do 
 > Seek to identify and 
maximise any 
brownfield development 
opportunities
 > Evaluate and work with 
long-term, top tier 
financing, technical and 
consulting partners
 > Ensure all 
environmental norms 
are met or exceeded
 > Take cognisance of  
the needs of local 
communities
Proximity to ports 
 > Our principal plants and 
projects are located 
close to ports which 
allows us to obtain 
imported coal with 
minimum land logistics
Developing in-house 
capabilities 
 > Promote a safe  
working environment
 > Continually enhance 
our development  
skills through internal 
mobility of senior 
employees with  
project development 
experience
 > Evolve reward 
structures to align  
with value creation
Our business model is currently 
driven by the shortage of reliable 
and continuous power in highly 
industrialised states of India.
Continuous, uninterrupted  
power supply
OPG’s revenue model is to sell in 
the short-term market to industrial 
and commercial customers or 
state utilities. OPG, a source of 
continuous and uninterrupted 
power supply, provides an 
opportunity to meet the regular 
and peak power demands of 
its customers.
Our business refects our  
core values and us striving for 
excellence in management.
 > Secure best available tariff through f exibility of  
revenue model
 > Maintain ability to use domestic, imported and blended  
fuel sources of a broad range of specifications
 > Implement optimisation of generation assets and work  
with development partners to incorporate performance 
improvement measures in subsequent projects
 > Minimise exposure to complex logistics
Superior returns  12    OPG Power Ventures Plc Annual report and accounts 2014
Chairman’s statement
We are now a recognised growing 
player in the electricity sector  
at a time when India has a new 
government that has vocalised  
its commitment to the sector.
By any measure your Company has 
delivered a solid performance this year. 
Operational metrics are ahead of industry 
norms and projects have been delivered 
on or ahead of time and within budget. 
This performance means we have nearly 
300 MW of generation capacity that can 
operate throughout the year and this in 
turn gives us the confidence to state 
clearly our intentions as to the timing of 
commencement of dividend payments. 
My colleagues and I on the Board are 
immensely pleased about this. 
There is of course further work to be done. 
The Company has two major projects 
heading towards commissioning that are 
expected to take total generation capacity 
to over 700 MW in just a matter of months. 
Both projects are on track and as a result 
management have also been charting the 
next phase of the Company’s growth, 
further details of which should be 
forthcoming in due course. 
This is a special time to be introducing new 
projects in our sector in India. A new 
government has been elected recently with 
a substantial majority and whilst it’s early 
days since its formation, the new prime 
minister, Mr Narendra Modi, has made 
plain the crucial role that the power sector 
is to play in the nation’s growth. In our 
view this bodes well for all types and sizes 
of power generation projects as the 
country’s dramatic energy needs cannot 
be serviced by any one or two fuel source 
alone. As has been much publicised in 
India again in the recent summer months, 
almost every area of the country has an 
unquenched shortage of electricity. The 
sector thus requires investment and we 
expect the trend of supportive policies to 
continue apace.
On our part, the Company must thus 
remain committed towards pursuing 
its unbroken record of profitability and 
delivering continuous growth in this 
critical sector of the Indian economy. 
I must thank the Company’s management 
and staff for their teamwork and dedication 
all of which is bearing fruit to the Company 
and I’m equally thankful to my colleagues 
on the Board and to shareholders for their 
unwavering support. 
We look forward to further substantial 
progress in the Company’s activities 
next year. 
M C Gupta
Chairman
20 May 2014  13    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
“ The Company has two major projects 
heading towards commissioning that 
are expected to take total generation 
capacity to 750 MW in just a matter 
of months.”
Air Cooled Condenser (‘ACC’) under construction and water storage at Chennai IV 14    OPG Power Ventures Plc Annual report and accounts 2014
Chief Executive’s review
I am delighted to be able to report to you 
at the end of a year in which we have 
achieved another step change in the scale 
of the business. Rupee revenues grew 
from Rs 4.8bn to Rs 9.5bn versus a year 
earlier and pre-tax profits rose from 
Rs 0.9bn to Rs 1.8bn over the same period. 
When translated into Sterling some of that 
growth appears lost due to last year’s 
sharp currency slide but £17.95m of 
pre-tax earnings represents a creditable 
70% growth upon the previous year.
Operational performance ahead  
of expectations and above Indian  
peer group
Our strong results this year were the 
consequence of our generation assets 
operating at a high level of utilisation. 
At an average of 96% our plant utilisation 
compares to a national average for thermal 
plants of 80–85% (even when the oldest 
inefficient plants are removed from the 
comparison). We believe that our Chennai 
site is now one of India’s top five power 
generation stations measured by utilisation 
levels, for which I congratulate both our 
development and operations teams. 
For the year ahead, in spite of a full 
maintenance shutdown to be taken in 
June 2014 we expect utilisation of these 
operating assets to continue to be strong 
versus the national average.
No stoppages due to coal shortages
We continue to receive domestic coal 
supplies in line with our expectations, 
supplies for Chennai II having commenced 
during the year under review. In order to 
supplement our needs we have continued 
to adopt a strategy of purchasing imported 
coal on contract with a major Indonesian 
miner in addition to spot market 
purchasing. This strategy serves us well 
particularly as international coal markets 
remain relatively subdued and consensus 
forecasts imply stability in months to come 
and at this time we see no need to alter 
this strategy. I am also pleased to report 
we recorded yet another year with no 
stoppages in power generation on account 
of coal shortage.
Flexibility is key in weathering short 
and long-term foreign exchange 
impacts
This year we saw some unusually sharp 
volatility in exchange rates between the 
Rupee and USD. Having started the year in 
April at Rs 54.50, the currency weakened 
dramatically to around Rs 68, albeit for 
just a few days and has progressively 
strengthened to approximately Rs 59 since 
then. Our early delivery of Chennai III, 
strong operating performance and margins 
enabled us to weather the effects of this 
period. Supportively, the Reserve Bank of 
India has outlined the country’s readiness 
to deal with tapering in overseas money 
supply and consensus expectations 
suggest the Rupee is largely likely to stay 
close to its current levels in the year ahead.
In the light of such currency volatility, we 
were additionally pleased to secure a 
15-year contract with Tamil Nadu state for 
74 MW, which is more or less the extent of 
the output from any one of the operating 
units from our operating Chennai units at 
an attractive tariff with significant foreign 
exchange protection built in. As this 
contract is based on imported coal, 
this long-term variable tariff (‘LTVT’) 
arrangement provides us with a degree of 
hedging on the aforementioned quantity 
of supply. In portfolio terms we, therefore, 
have a long-term partial hedge in place 
for part of our operating capacity which 
should improve the visibility and volatility of 
cash flows. Having flexibility at the core of 
our revenue model enabled us to secure 
this opportunity. 15    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
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“We believe that our Chennai site is now one of India’s top 
five power generation stations measured by utilisation 
levels, for which I congratulate both our development and 
operations teams.”
Projects on track, potential expansion 
of Chennai IV
I am pleased to report that together 
with our suppliers at Chennai IV we have 
identified the potential to increase the scale 
of this development by 20 MW without 
altering the project delivery timeline. 
We are anticipating the final paperwork 
and clearances for this expansion to be 
in place within just a few weeks.
We now have 480 MW of projects that 
we are endeavouring to deliver during 
the current financial year and despite the 
challenges of establishing projects in India 
we remain on track to achieve this goal.
Given the progress that the Company 
has made the Board expects to declare a 
maiden dividend following the successful 
and sustainable profitable operation of the 
new 480 MW of capacity.
During the year we spent £128m on 
advancing our capital projects, more than 
any previous period, and we have around 
£51m earmarked to complete the projects 
with some of the remaining milestones 
including hydraulic testing of Chennai IV, 
the completion of transmission lines 
external to the Gujarat plant and the 
assembly of the turbine generator at 
both projects.
Once completed, these developments 
will yield us a portfolio comprising several 
operating units across two key strategic 
locations – 450 MW in the South and 
300 MW in the West.
Additional growth
Our focus remains on delivering our existing 
projects, as referenced in our interim 
results, announced on 21 November 2013, 
we continue to study further opportunities 
for investment and growth based on the 
core existing skill set within our team. Any 
study of India’s current and future energy 
needs illustrates the substantial need for 
power generation from a variety of sources 
and whilst we focus on India as our 
geographic market, we believe that a 
sensible long-term strategy is for us to 
carve out an important role within the 
country’s energy mix.
Straightforward capital structure 
provides additional flexibility 
and savings
We expect our LTVT to facilitate us in 
remaining ahead on our scheduled debt 
repayments and to have buffer borrowing 
capacity in case we desire it. With relatively 
high interest costs in India, our current 
levels of prepayments on Group borrowing 
facilities yields around £700,000 of pre-tax 
annual savings.
All of our debt is currently in Rupees 
and we are still expecting debt levels to 
maximise at around Rs 25bn towards the 
end of FY15, representing a manageable 
gearing level.
We are maturing and recognise the 
need to implement continuous 
improvement
As we continue to mature we’ve 
introduced new and improved safety and 
environmental practices into our operating 
culture. We now have a compulsory 
incident reporting standard and collect 
and monitor Total Reported Injury data. 
We also record ‘near miss’ incidents. 
On our environmental monitoring too we 
have made advances, such as providing 
regulatory authorities with real-time feed 
of our monitoring data. These and other 
operating initiatives were recognised this 
year with the achievement of OHSAS 
accreditation for occupational health 
and safety and ISO for total quality 
implementation at our flagship Chennai I 
unit. Furthermore, we saw several project 
improvement initiatives developed that 
we believe have saved us significant 
man-hours during project execution 
including the recent implementation of 
SAP enterprise resource planning across 
many of our business processes.
I personally want to see a continuous 
improvement culture take full hold of 
every aspect of our business so we 
can constantly give our shareholders 
developments to be proud of.
We remain confident of the 
Company’s long-term prospects
As India now prepares to welcome the 
initiatives of a new government, the 
widespread vibe is for economic growth  
to trend upwards. The power sector is 
likely to have to play a crucial part of 
growth oriented government policies as 
power in India is much needed for the 
growth to occur. With our new projects 
being delivered to service this requirement 
we remain confident of the Company’s 
long-term growth and prospects. In the 
shorter term, we anticipate supportive  
tariff structures and other policy initiatives 
to develop over the coming months  
but for average tariffs in Tamil Nadu in 
particular to remain broadly unchanged  
in the meantime.
The Board and I are extremely grateful to 
our team as a result of which I once again 
have had much news to share with you 
in this review – they’ve delivered a solid 
performance in all key areas.
Arvind Gupta
Chief Executive Officer
20 May 2014  16    OPG Power Ventures Plc Annual report and accounts 2014
750
 
MW
The Company’s projects of 480 MW  
are fully funded and under advanced 
construction. The Company is set to 
achieve further transformational growth 
with near tripling of capacity from 270 MW 
to 750 MW.
Delivery and  
Growth through:
Performance
Maximising 
generation from 
assets
+97.5
%
Increase in generation
80 MW Chennai III commenced operations 
in June 2013 and contributed significantly 
to the increase in generation.
Making significant 
progress
Detailed view of the Electrostatic Precipitator (‘ESP’) units at Chennai site 17    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
90
80
70
60
50
40
30
20
10
0
PLF – consistently above industry average (%)
FY11 FY14 FY12 FY13
 Chennai I  
 Chennai II  
 Chennai III 
   All India Private Sector 
   (Thermal IPPs)
Revenue 
(£m)
FY11 FY12 FY13 FY14
21.58
38.48
56.19
98.81
100
80
60
40
20
0
EBITDA
(£m)
35
30
25
20
15
10
5
0
10.08
11.30
17.74
30.97
FY11 FY12 FY13 FY14
Year-on-year growth
OPG has delivered a strong performance 
year-on-year across all metrics. The 
Group’s revenue has grown from £22m  
in 2011 to approximately £100m in FY14.
Profit after tax and Earnings per share 
have grown multifold building value  
for its shareholders. The Company has 
consistently achieved a high average  
tariff per unit. 
The Company’s flexible model, has 
allowed it to weather the tough economic 
conditions experienced by the Indian 
power sector and OPG continues to 
be amongst the most profitable players 
in India.
“ I personally want to see 
a continuous improvement 
culture take full hold of every 
aspect of our business so 
we can constantly give our 
shareholders developments 
to be proud of.”
 Arvind Gupta
 Chief Executive Officer
The Company prides itself on its 
operational performance. From 20 MW  
in 2008 to 270 MW today, the Group has 
been transformed significantly. The annual 
average plant load factor (‘PLF’) of the 
three operating units was more than 96% 
in the financial year under consideration 
surpassing industry average. 
Performance ahead of market 18    OPG Power Ventures Plc Annual report and accounts 2014
OPG’s objective is to build shareholder value and to 
be the supplier of first choice. OPG supplies power 
to industrial or commercial customers including  
the state utility focusing on providing reliable power 
at competitive tariffs. OPG’s management has  
built a track record of operational, financial and 
project delivery.
Credibility through:
Track  
record
•  Higher tariffs realised 
consistently
•  Operational performance 
of all the three units has 
surpassed Industry 
average
•  Track record of delivering 
projects
Chennai IV chimney, boiler, ESP and ACC units 19    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
Earnings per share
(pence)
5
4
3
2
1
0
2.13
1.71
2.48
4.14
FY11 FY12 FY13 FY14
750
 
MW
 
Fully funded portfolio
OPG today has a portfolio of 750 MW 
compared with its original commitment 
of 347 MW of which it has successfully 
commissioned 270 MW. An additional 480 
MW is expected to be commissioned in 
FY15. It has focused on projects being on 
time and budget. The management team 
have raised £125 million of equity and a 
further £310 million of debt facilities in  
India to fund its portfolio.
The Company has outperformed its peers 
on operational and financial performance. 
Operational performance of its assets has 
been strong and consistent year-on-year 
with high availability and utilisation of 
plants. EBITDA margins and profitability 
have been maintained by achieving best 
“By any measure your 
Company has delivered a 
solid performance this year. 
Operational metrics are 
ahead of industry norms 
and projects have been 
delivered on or ahead of 
time and within budget.” 
  M C Gupta
 Chairman
tariffs, flexibility in coal procurement and 
robust operational performance. It has 
paid its debt instalments ahead of 
schedule in the last three years.
In achieving its objectives, the Group takes 
seriously its responsibility towards its 
employees, environment and local 
communities. It was awarded the ISO 
14001 and OHSAS 18001 at Chennai for 
its procedures and policy towards the 
environment and health and safety. 
It engages with local communities and 
focuses on the areas of education, health 
and women empowerment.
Chennai I, II and III
Creating value for our  
shareholders  20    OPG Power Ventures Plc Annual report and accounts 2014
The Group has gained significant experience  
in developing and operating projects in the last  
six years. It has delivered 234 MW of new projects  
and has a further 480 MW under construction. 
Self-sufficiency through:
Expertise
Experienced
400
 
employees
OPG has its own projects and 
operational teams who deliver plants 
on time, in budget and now run one 
of India’s best plants.
Construction worker working on the ACC unit at Chennai IV 21    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
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The Group today has 400 employees 
and a further 1,000 contractors working on 
its site. The in-house team comprises 
engineers of all disciplines such as 
Mechanical, Electrical, Instrumentation, 
Chemical and Civil, Safety Officers, 
Logistics Officers, Finance, Legal and 
Accounts professionals. This team 
oversees each project from planning to 
commissioning and day to day operations.
Currently, our EPC team is managing and 
overseeing the 300 (2x150) MW Gujarat 
and 180 MW Chennai IV projects which 
are in advance stages of construction with 
1,000 contractors and several suppliers 
on site in both locations. This team has 
successfully delivered 234 MW developed 
from scratch.
The Company believes in continuous 
improvement as a result of which a PLF  
of over 90% was achieved for Chennai III 
during the first year of its operation. 
Further, the Company’s Chennai 
operations ranks among the top plants in 
India for its operational performance. At 
Chennai we also achieved OHSAS and ISO 
certification earlier in the year. The Group 
implemented SAP-based enterprise 
resource planning (ERP) system during the 
year to streamline its information flow.
The Group is fully funded for its current 
portfolio of 750 MW. The Group has a 
gearing ratio of c.52%. and its cashflow 
from current operations has enabled early 
repayment of debt instalments.
Responsible growth
Advanced debt 
repayment
£3.32
m
The Company is ahead in its debt 
repayments by nearly one-year interest 
saving about £0.77m in FY14.
ISO 14001
 
At Chennai we have obtained 
certification ISO 14001 for  
environmental management and  
OHSAS 18001 for occupational health 
and safety management systems. 22    OPG Power Ventures Plc Annual report and accounts 2014
Chennai 
III
Chennai 
II
Chennai 
I
PLF (%) FY 2014
96
99
100
80
60
40
20
0
92
Chennai 
III
Chennai 
II
Chennai 
I
Generation (million kWh) FY 2014
646
668
800
600
400
200
0
526
FY13 FY14
Tariff (Rs/kWh)
5.55
5.58
6.00
5.00
4.00
3.00
2.00
1.00
0
The following is a summary of our operations  
for the year. 
Operations
Chennai performance ahead 
of expectations
During the year under review, the 
generation increased by nearly 100%  
from 932 million kWh to 1,840 million kWh.  
The increase was contributed by a full  
year of Chennai II operations compared 
to six months in the previous year and  
ten months from Chennai III which was 
commissioned in June 2013. Further  
the average PLF for each of the units 
exceeded expectations at over 90%, well 
above the private sector average of 61%. 
Excellent progress on projects 
During the year under review, the Company 
made considerable progress at both its 
plant sites at Chennai and Gujarat. 
80 MW Chennai III delivered
Chennai III was successfully commissioned 
in June 2013. The trial commissioning was 
completed in May 2013 and the plant was 
stabilised in a record seven days. The plant 
ramped up to 70% PLF during the first 
quarter of FY14 and operated at an average 
92% for FY14. 
Operational review
300 (2 x150) MW Gujarat  
nearing completion 
At the Gujarat plant too, comprising 
two identical 150 MW units, aesthetic 
finalisation of civil works remains. The 
chimney is complete. Of the major boiler 
related components of the plant, the 
boilers of both units have successfully 
completed hydraulic tests and are being 
prepared for commissioning activities.  
The assembly and installation of both 
turbines is significantly advanced too.
The state is now laying several kilometres 
of transmission lines in order to connect 
the plant to high voltage transmission 
infrastructure of which we are undertaking 
some activity. 
This development is set to transform our 
scale to 750 MW, with 450 MW in southern 
India and 300 MW in western India. 
180 MW Chennai IV – Increased 
capacity by 20 MW
At the Chennai IV unit, aesthetic finalisation 
of civil works remains. The chimney is 
complete. Of the major boiler related 
components of the unit, the boiler itself 
is now installed and hydraulic tests were 
successfully completed in June 2014.  
The turbine and generator are on site and 
following the hydraulic testing, the turbine, 
generator and instrumentation can be 
interconnected, preparation for the turbine 
to be charged with steam and the unit 
insulated, an activity that typically takes 
four months, after which we expect 
to commence commissioning trials. 
Transmission infrastructure for this  
project is already in place. Our scheduled 
commissioning is in December 2014. 
We sought the requisite permitting  
to implement the Chennai IV unit  
as a 180 MW asset, in line with the 
capacity rating assigned to the unit  
by its suppliers, instead of as a 160 MW 
unit as has been the scope of this 
development to date. Our team is now 
satisfied that this capacity is deliverable 
from the unit. The change is not expected 
to alter our commissioning timetable.  23    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
Project Development
Project  
Milestones
 
Chennai III
 
Chennai IV
 
Gujarat
 
Financing
 
Completed
 
Completed
 
Completed
Civil works & 
Foundation
 
Completed
Mostly  
completed
Mostly  
completed
 
Completed
Significantly 
advanced
FY15
Mostly  
completed
FY15
Chimney & 
Boiler related 
construction
T esting &  
commissioning
 
Completed
Strong operational 
capabilities
97.5
%
Increase in generation
All units performed ahead of 
management expectations with  
over 90% PLF for the year
Operations team at Chennai III Turbine Generator building 24    OPG Power Ventures Plc Annual report and accounts 2014
Principal risks
The Group faces a number of risks to  
its business and strategy. Management
of these risks is an integral part of the 
management of the Group. The Group
has in place a process for identifying  
and managing risks.
The list of principal risks and uncertainties 
facing the Group’s business set out below 
cannot be exhaustive because of the very 
nature of risk. New risks emerge and the 
severity and probability associated with 
these will change over time.
Sector-related risks
Power sale in the Group captive model 
Potential impact Monitoring and mitigation
The Group’s power plants derive their revenue from the Group 
captive model selling power to captive consumers and partly from 
sale on short-term, medium-term, or long-term sale basis and 
would, for this purpose, enter into power purchase agreements 
with counterparties such as captive consumers, power trading 
companies and state utilities.
Contracts with customers may impose restrictions on the 
Company’s ability to, amongst other things, increase prices at short 
notice and undertake expansion initiatives with other customers. 
This could affect the revenue in the short to medium term.
 > Review contracts periodically to obtain best possible tariffs
 > Flexibility to sell to captive consumers or in the open market
 > Benchmarking captive consumer prices to state utility prices 
to benefit from any price increases
Availability of fuel supply and costs 
Potential impact Monitoring and mitigation
The Group has coal linkages with domestic companies and 
agreements for imported coal. 
The dependence on third parties for coal exposes the Group’s 
power plants to vulnerabilities such as non-supply, price increases 
in the international market, foreign exchange fluctuations and 
increases in shipping costs. This could impact the operations 
and profitability of the Group.
 > Seeking long-term supplies
 > Maintaining adequate storage facility to keep appropriate levels 
of surplus stocks
 > Maintaining relationship with suppliers and mitigating any 
potential disruption
 > Developing different sources for fuel supply especially in the 
imports market
Timely execution of projects 
Potential impact Monitoring and mitigation
The length of the construction period and the cost to complete 
any given project is dependent on third party suppliers and 
EPC  contractors. 
Factors such as disputes with contractors, price increases, 
shortages of construction materials, delays in supply from various 
contractors, accidents, unforeseen difficulties, changes in 
government policies and delays in receipt of necessary approvals 
can lead to cost overruns and delays impacting the timely 
completion and ultimately the profitability of projects.
 > Close monitoring of projects by the project team and addressing 
issues causing delays
 > Ordering key equipment and long lead items ahead of schedule
 > Including liquidated damages clauses in its contracts in relation 
to such matters as delays and inferior Workmanship
 > Developed strong and well experienced in-house EPC team to 
deliver the projects on time
Project Finance 
Potential impact Monitoring and mitigation
The development of power plants is a capital intensive business 
and the Group’s projects require access to both equity and 
debt markets.
Terms of debt funding/Interest rates may change.
 > Assessing financial viability of projects
 > Financing projects with an optimum mix of debt and equity 
including internal accruals
 > Obtaining in-principle project finance from banks before 
commencement of projects
 > Monitoring cash flows to ensure repayment of debt and 
interest  in line with schedule
 > Exploring new relationships in debt markets to ensure 
optimum debt funding terms 25    OPG Power Ventures Plc Annual report and accounts 2014
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Sector-related risks continued
Health, safety and environmental and local stakeholder management
Potential impact Monitoring and mitigation
The Group’s plants are located in different states and in areas 
where there is adequate land to set up projects, water availability 
and connectivity to ports. Setting up power projects in such 
areas may affect the environment and health and safety. 
Changes in legislation and standards, the Group’s failure to control 
adequately environmental and health and safety risks or activism 
by local groups could have an adverse impact on the operations  
of the Company.
 > The Group has management systems to monitor the health, 
safety and environmental aspects of business. These are 
communicated to the relevant businesses and employees  
with training provided on a regular basis
 > There is a formal committee responsible for health, safety and 
environmental issues at Board level is under consideration
 > Board committee for HSE monitors the key parameters and 
develops comprehensive policies for ongoing management  
and mitigation
 > The Group proactively engages with local stakeholders prior 
to and during project commissioning to address concerns
 > Working with local communities and implementing sustainable 
programmes to aid the development of these communities
India-specific risks
Government policy and regulations
Potential impact Monitoring and mitigation
The power industry is heavily regulated with permits and licences 
issued by the Indian Government. Further, the regulatory 
environment is continuously changing. Obtaining these licences 
is critical to the Group’s development plans.
Failure or delays in receiving permits or approvals could have  
an adverse impact on projects and affect the profitability of  
the Group. 
 > The Group monitors and reviews changes in the regulatory 
environment and its commitments under licences previously 
granted
 > It continually ensures compliance with the conditions contained 
within individual licences and is mindful of the importance of 
complying with national and local legislation and standards
 > The Group maintains an open and proactive relationship with  
the Indian Government and its various agencies
Ability to retain fiscal and tax incentives 
Potential impact Monitoring and mitigation
The Group’s existing and planned power plants are based on the 
various fiscal and tax benefits that will be available to the Company 
by the federal and state government. 
A change in policy or the adoption of tax policies and incentives 
can have an adverse impact on the profitability of the Group.
 > The Group continues to monitor changes and developments in 
respect of incentives provided by the Indian federal and state 
authorities
 > Project investment returns are evaluated based on the expected 
incentives available to the Company and are revised based on 
the most up-to-date guidance available
Exchange rate fluctuations
Potential impact Monitoring and mitigation
As a consequence of the international nature of its business, the 
Company is exposed to risks associated with changes in foreign 
currency exchange rates. The Group’s operations are based in 
India and its functional currency is the Indian Rupee although the 
presentational currency is Great Britain Pound Sterling. The raw 
material is purchased in US Dollars. 
The Group’s financial results may be affected by appreciation or 
depreciation of the value of the foreign exchange rates relative to 
the Indian Rupee. 
 > Putting in place, where appropriate, forward contracts or 
hedging mechanisms
 > Monitoring our risk on a regular basis where no hedging 
mechanism is in place and taking steps to minimise  
potential losses
Global financial instability
Potential impact Monitoring and mitigation
The Indian market and Indian economy are influenced by global 
economic and market conditions, particularly emerging market 
countries in Asia. Financial instability in recent years has inevitably 
affected the Indian economy. 
Continuing uncertainty and concerns about contagion in the wake 
of the financial crises could have a negative impact on the 
availability of funding.
 > The Group continues to monitor changes and developments in 
the global markets to assess the impact on its financing plans 26    OPG Power Ventures Plc Annual report and accounts 2014
Financial review
The following is a commentary on Group’s financial 
performance in the year.
“OPG revenue has 
increased by £42.61m, 
reflecting a 76% growth 
year-on-year. Underlying 
Rupee revenues increased 
by 96%.”
  Mr V Narayan Swami
 Financial Director
Income statement
Year ended 31 March (£m) 2014
% of 
revenue 2013
% of 
revenue
Revenue 98.81 56.19
Cost of revenue (excluding depreciation) (59.52) (33.25)
Gross profit 39.29 39.8% 22.94 40.8%
Other income 0.26 0.72
Distribution, general and administrative 
expenses (Excluding depreciation, 
employee stock option charge, expenditure 
during the period on expansion project) (8.58) (5.92)
EBITDA 30.97 31.3% 17.74 31.6%
Depreciation (2.90) (1.56)
Net finance costs (Excluding charge on  
de-consolidated investments) (8.53) (2.95)
Income from continuing operations 
(before tax non-operational and/or 
exceptional items) 19.54 19.8% 13.23 23.5%
Expenditure during the period on expansion 
projects (0.34) (0.61)
Employee stock option charge (0.97) (0.97)
Charge on de-consolidated Investments (0.27) (1.11)
Profit before tax 17.95 18.2% 10.54 18.7%
Taxation (3.39) (1.71)
Profit after tax 14.56 8.83
Revenue
OPG revenue has increased by £42.61m, reflecting a 76% growth year-on-year, on 
account of a full year contribution from the 77 MW Chennai I & Chennai II plants and 
nearly 10 months contribution from the 80 MW Chennai III plant. Underlying Rupee 
revenues increased by 96%.
Production and output levels from the Group’s operating power plants compared to 
the prior year were as follows:
FY14 FY13 FY14 FY13
Particulars Generation (million kWh) PLF (%)
Chennai I 646 617 96 92
Chennai II 668 315
1
99 99
Chennai III 526
2
NA 92 NA
Total 1,840 932
1 Commissioned on 10 October 2012.
2 Commissioned on 5 June 2013.
  27    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
Revenue 
(£m)
FY11 FY12 FY13 FY14
21.58
38.48
56.19
98.81
100
80
60
40
20
0
EBITDA
(£m)
35
30
25
20
15
10
5
0
10.08
11.30
17.74
30.97
FY11 FY12 FY13 FY14
Gross profit
Gross profit (‘GP’), excluding depreciation in FY14 was £39.29m (£22.94m in FY13). 
The impetus to GP growth came mainly from the benefit of the full-year operation of 
the Chennai II 77 MW plant (173 days in FY13) and 300 days operation of the Chennai III 
80 MW plant.
Cost of revenue excluding depreciation was 60.2% of revenue in FY14 higher from 59.2% 
in FY13. Over 90% of the costs of revenue are fuel costs i.e. coal. The average factory gate 
costs for Indian coal increased by 4% and for Indonesian coal by 3%. The table below 
shows the price and blend of Indian and Indonesian coal consumed in FY14 (for Chennai I 
and Chennai II) and FY13 for Chennai I (Chennai II burnt only imported coal).
The Coal Blend in FY14 is on account of the following factors:
a) Deliveries of Indian Coal commencing only from October 2013 for Chennai II; and
b) Deliveries of Indian Coal for Chennai III (10 months working in FY14) having 
commenced only in May 2014.
Average factory gate price 
(Rs/mt)
Financial year Indian coal
Indonesian 
coal
Blend % 
Indian:Indonesian
Weighted average cost 
(Rs/mt)
FY14 2,931 3,930 17:83 3,760
FY13 2,817 3,807 37:63 3,441
Change % 4% 3% 9%
EBITDA
Earnings Before Interest, Taxation, Depreciation & Amortisation (‘EBITDA’) is a measure of 
a business cash generation from operations before depreciation, interest and exceptional 
and non-standard or non-operational items (such as the annual charge for stock options 
which is a non-cash item or expenses relating to projects under construction).
EBITDA was £30.97m in FY14 up from £17.74m in FY13 and EBITDA margin was 
maintained at the level of 31.3% as in 2013.
Construction worker at Chennai IV site 28    OPG Power Ventures Plc Annual report and accounts 2014
Earnings per share
(pence)
5
4
3
2
1
0
2.13
1.71
2.48
4.14
FY11 FY12 FY13 FY14
Financial review continued
Profit before tax (£m) OPG PG
Non 
operating
entities
1
Total 
Profit Before Tax (PBT) 2013–14 21.79 (3.84) 17.95
Profit Before Tax (PBT) 2012–13 11.52 (0.98) 10.54 
Increase/(decrease) in PBT 10.27 (2.86) 7.41 
Reconciliation
Increase in GP 16.34
Reduction in charge on de-consolidated investments 0.83
Increase in net finance cost (5.58)
Increase distribution, general and administrative expenses (2.38)
Reduction in other income (0.45)
Increase in depreciation (1.35)
Increase/(decrease) in PBT 7.41
1 Includes:
a) OPGS Power Gujarat Pvt Ltd, India, b) Gita Power & Infrastructure Pvt Ltd, India
c) Caromia Holdings Ltd, Cyprus d) OPG Power Ventures Plc, Isle of Man
 
Taxation
The Group consolidated PBT was at £17.95m after charging £0.27m towards adjustment 
in the carrying value of the legacy plants and £0.97m towards amortisation of Employee 
stock options (both being non-cash charges at the level of holding company).
Expenditure on projects
This relates to expenses incidental to projects under construction. These expenses in 
2014 were £0.34m in (FY13 £0.61m).
Employee stock option charge
This pertains to the amortisation of the value of stock options granted to certain Directors 
and is non-cash in nature.
Profits after tax
Profits after tax have increased by £5.74m from £8.83m in FY13 to £14.56m in FY14.
Property, plant and equipment
Property, plant and equipment (including intangible assets) has increased by £97.58m, 
53.4% year-on-year growth, mainly reflecting the capitalisation of the 80 MW Chennai III 
plant and the increase in capital work in progress on account of the power plants under 
construction in Chennai and Gujarat.
Other non-current assets
Other non-current assets have decreased by £0.64m, 40.8% year-on-year primarily as a 
result of decrease in the fair value of the investments made in the de-consolidated assets.
Trade receivables (£m) FY14 FY13
Receivables from sales of power 20.59 32.24
Other receivables 0.41 2.57
Total 21.00 34.81
Current assets
Current assets have decreased by £2.09m to £112.29m year-on-year primarily as a result 
of the following:
 > Reduction in the cash and cash equivalents by £16.27m primarily due to the increase  
in investments made in the Gujarat and additional Chennai power plants;
 > Reduction in trade receivables by £13.80m;
 > Increase in Investments and Other Assets by £18.42m on account of advances to 
suppliers for the projects in Chennai and Gujarat;
 > Increase in Inventory holding by £6.75m due to three plants being in operation; and
 > Increase in other assets by £2.8m.
31.3
%
EBITDA margin
£1 7.95
m
PBT 29    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
Gearing
(%)
60
40
30
20
10
0
-10
-20
-30
-24
19
52
37
FY11 FY12 FY13 FY14
Borrowings
As an efficient means of developing the cash generation from operations, the long-term 
project loans are being partially prepaid year-on-year. And had they not been so prepaid, 
the cash and cash equivalents balance would have been as follows:
Year
Cash & cash 
equivalents 
(£m
Term loans 
prepaid 
(£m)
Cash & cash equivalents 
(without prepayment) 
(£m)
Exchange 
rate 
(INR/£)
FY2010–11 70.21 0.83 71.04 72.60
FY2011–12 37.87 2.91 40.78 82.90
FY2012–13 22.91 4.47 27.38 82.56
FY2013–14 7.64 3.32 10.96 99.42
Due to the above prepayments, the saving in the finance cost is as follows:
Year
Finance 
cost saved 
(£m)
Exchange 
rate 
(INR/£)
FY2010–11 0.03 70.96
FY2011–12 0.17 76.69
FY2012–13 0.43 85.83
FY2013–14 0.77 95.89
Current liabilities
Current liabilities have reduced by £3.85m primarily on account of the reduction in the coal 
related payables.
Other non-current liabilities
Other non-current liabilities have increased by £104m primarily on account of an increase 
in bank borrowing to meet the capital project expenses.
Gearing
Net borrowings (borrowings net of cash and cash equivalents and available-for-sale 
investments) are £172m on account of capital expenditure on projects. Gearing ratio was 
52%. The table below shows the investment in the projects under development and the 
total amount spent in both equity and debt up to 31 March 2014.
Project investment (£m)
160 MW 
Chennai IV
300 MW 
Gujarat
As at 1 April 2013 18.1 18.1
During the year 38.1 49.5 
As at 31 March 2014 56.2 144.5 
Cash flows
Operating cash flow increased from £18.10m in 2013 to £30.85m in 2014, an increase of 
£12.75m, or 70%. The increase is primarily due to the increased profit before tax.
Movements (£m) FY14 FY13
Operating cash 30.22 18.10
Tax paid (2.82) (2.24)
Change in working capital assets and liabilities (2.25) 32.97
Net cash generated by operating activities 25.15 48.83
Purchase of property, plant and equipment (net of disposals) (128.64) (94.80)
Other investments (10.64) (0.47)
Net cash used in investing activities (139.28) (95.27)
Net Interest paid (9.52) (5.03)
Total cash change before net borrowings (123.65) (51.47)
£128
m
Investment in completed and  
under-development projects in FY14
£3.32
m
Debt prepayment in FY14 30    OPG Power Ventures Plc Annual report and accounts 2014
Sustainability report
The Board formally established a Health, Safety and Environment 
Committee in FY13 to develop, implement and oversee a health and 
safety culture in the Company and to assist the management in our 
drive towards achieving and maintaining industry-leading 
performance in these areas.
Investing in people
 0 .1 7
Total Recordable Incidence Rate
Health and safety
Providing our employees with the safest 
and healthiest work environment has  
been our constant endeavour. Our motto  
of SAFETY FIRST is inculcated in all our 
personnel and in all our operations and 
projects under development.
We ensure that our plant locations are 
compliant with all national health and safety 
regulations. Such safeguards are maintained 
either through management programmes or 
operational control procedures.
The Board formally established a Health, 
Safety and Environment Committee (‘HSE 
Committee’) in FY13 to develop, implement 
and oversee a health and safety culture 
in the Company and to assist the 
management in our drive towards 
achieving and maintaining industry-leading 
performance in these areas. Since then, 
we have made significant progress in our 
drive towards becoming a leader in health 
and safety. The HSE Committee reported  
a Total Recordable Incidence Rate (‘TRIR’) 
of 0.17 for the year under review, a 
substantial improvement over last year.
In May 2013, at Chennai we successfully 
obtained the OHSAS 18001 certificate. 
OHSAS 18001 is a standard used  
for occupational health and safety 
management systems, which enables  
an organisation to control its risks and 
improve its performance in this area.  
The standard provides a systematic 
approach to identifying hazards.
OPG believes that safety is everyone’s 
responsibility. The management objective 
is to motivate the employees and 
associates to put safety first in the 
workplace and contribute towards making 
OPG a healthier and safer place to work. 
We conduct frequent training sessions, 
awareness programmes and annual health 
checkups for all our employees at all 
locations. 
Environment
The Group strives to achieve continuous 
improvement in environmental performance 
and seeks to prevent, mitigate, reduce or 
offset the environmental impact of our 
activities. The Board continues to monitor 
the level of environmental performance to 
minimise any deviations. 
In May 2013, at Chennai we successfully 
obtained the ISO 14001 certification.  
This specifies requirements for an 
environmental management system  
that enables an organisation to develop 
and implement policies and objectives 
with respect to the environment.
OPG Safety team
EHS Best Practice award 31    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
Green initiatives 
Realtime display of all key environmental 
parameters is at the plant boundary at the 
Chennai site and will also be implemented 
at the Gujarat site upon operation. 
The Company has implemented 100% 
prohibition of plastic and non-biodegradable 
substances in the power plant premises. 
At both premises the Company has a fully 
covered coal shed to manage coal and dust 
dispersion in the surrounding areas.
We have been planting trees in and around 
our locations in an effort to provide a clean 
and green environment. At our Gujarat site 
we have undertaken mangrove plantation 
with the assistance and knowledge of 
the government authorities. 
During the year under review, we started 
monthly water sprinkling programmes 
surrounding the Chennai plant and in 
other areas, for example roads and 
yards through water tankers to arrest 
any possible dust pollution.
Our people
Employee consultation
The Group places considerable value on 
keeping employees informed on matters 
affecting them and on the various factors 
affecting the performance of the Group. 
This is achieved through informal meetings 
and presentations on new developments 
both within the Company and the wider 
industry. The Group is committed to 
providing equal opportunities and 
opposes all forms of unfair or unlawful 
discrimination. Employees will not be 
discriminated against because of race, 
colour, nationality, ethnic origin, disability, 
sex or sexual orientation, marital status 
or age.
All employees are encouraged to raise 
genuine concerns about possible 
improprieties in the conduct of our 
business, whether in matters of financial 
reporting or other malpractices, at 
the earliest opportunity and in an 
appropriate way.
Disabled persons
Applications for employment by disabled 
persons are always fully considered, 
bearing in mind the aptitudes of the 
applicant concerned. In the event of 
members of staff becoming disabled, 
every effort is made to ensure that their 
employment with the Group continues 
and that appropriate training is arranged.
Training and development
Employing the right people and 
encouraging the continuous development 
of the skills of our employees is critical 
to developing a successful business. 
The company recruits graduate 
engineering trainees and provides them 
with a comprehensive six months on-site 
training programme. This will ensure 
that, in keeping with the growth of 
the Company’s assets, adequate well 
trained and competent personnel are 
available for in-house operations and 
project development. 
Tree plantation at Gujarat site 32    OPG Power Ventures Plc Annual report and accounts 2014
Supply chain
The Group works with a team of leading 
industry suppliers and contractors in order 
to mitigate risk in the event of there being a 
product delay or a supplier failing. The 
Board recognises the particular risks 
posed to its supply chain by the prevailing 
global economic conditions and the 
potential impact should key suppliers fail. 
To mitigate these impacts, the Group 
monitors suppliers’ business continuity 
issues, providing such practical support 
and advice as may be appropriate.
The Company’s power generation plants 
are fuelled by coal sourced from India but 
also from imported coal from Indonesia. 
Availability of supplies is therefore less of 
an issue than prices, which can fluctuate 
in line with world market forces of supply 
and demand.
Community
The Group recognises the importance 
of engaging with the communities 
in which it operates. It encourages 
operating units to develop their own 
corporate social involvement plans in 
consultation with stakeholders in order 
to identify programmes with tangible 
and sustainable community benefits 
and to undertake programmes on a 
needs-based assessment.
OPG outreach
OPG Outreach, launched in July 2011 near 
our Kutch site, has now completed three 
successful years and has been expanded 
to the Chennai site as well during the last 
financial year.
The first free primary healthcare centre 
that we have built last year at Sitha Raja 
Kandigai (the nearest village to our Chennai 
site), is running successfully, handling 40 
patients on an average per day. The centre 
is serving the medical requirements of the 
residents of five nearby villages. 
The second healthcare centre is under 
development at the Periya Obulapuram 
village, also near the Chennai site. OPG 
is confident that both these centres and 
their associated facilities will provide much 
needed basic care and medical aid to the 
communities around the OPG power plant. 
Other than the centres, regular specialised 
medical camps were also organised for 
diabetes, opthamological treatment etc. 
In collaboration with Junior Red Cross 
(an NGO which imparts first aid training to 
students), we have organised a three day 
camp at Gummidipoondi for 500 students 
to develop their skills. 
Rural infrastructure development
In continuation to our community 
development efforts, our Gujarat team  
has distributed cattle feed and provided 
assistance in building Gowshalas  
(cow shelters) and water storage tanks  
in nearby villages in the Kutch district, 
Gujarat.
On request of the people of Kayalar Medu 
village, Gummidipoondi, we have started 
constructing a prayer hall/church as a part 
of our community development initiative.
Engaging with communities
40
Average patients per day at our Chennai  
primary health care centre
Sustainability report continued
Cattle feed distribution at Gujarat
OPG outreach clinic at Chennai 33    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
Educational aid
OPG believes that education is the 
foundation and building block for achieving 
national objectives for building a more 
inclusive, equitable and sustainable 
society. We have continued to provide 
educational assistance to children in our 
local communities. 925 school children 
belonging to the villages of Periya 
Obulapuram, Chinna Obulapuram, 
Kayalarmedu, SR Kandigai received full 
school supplies (uniforms, books, bags, 
etc.) for the entire year before the 
commencement of the school year. About 
85 students from below the poverty line 
families are also granted annual school/
college fees to ensure that lack of funds 
does not preclude their advancement.
As part of OPG Outreach, a strong 
awareness programme has been 
developed to promote female child 
education. To support this, from this year 
forward, the Company has started a 
sponsorship programme in higher 
secondary education at a reputed private 
school. Under this scheme, three girls will 
be selected every year based on academic 
background and economic needs and their 
entire education will be funded by OPG 
Outreach.
925
Children were provided 
educational assistance
Blanket distribution at Gujarat 34    OPG Power Ventures Plc Annual report and accounts 2014
Board of Directors
Background and experience
Mr Munish Chandra Gupta is a 
retired senior civil servant of the 
Indian Administrative Service, the 
premier civil service of India. During his 
service Mr Gupta held a number of senior 
appointments, notably those of Secretary, 
Ministry of Industry, Government of India 
and Chief Secretary to the Government of 
Haryana State. As Secretary to the Ministry 
of Industry, Mr Gupta was one of the civil 
service officers responsible for initiating 
and implementing the process of 
economic reforms which began in the 
1990s in India and which continue to 
this day. Mr Munish Gupta serves on the 
boards of a number of public companies 
in India including Bhansali Engineering 
Polymers Ltd. and Lumax Industries Ltd. 
as an independent director. Mr Munish 
Gupta is not related to either Mr Arvind 
Gupta or Mr Ravi Gupta.
Background and experience
Mr Arvind Gupta gained experience in 
various divisions of the business including 
flour milling, steel production and logistics, 
becoming President of Kanishk Steel, 
listed on the Bombay Stock Exchange. 
Having identified the opportunities in 
power generation, Mr Gupta developed 
this division within Kanishk Steel with initial 
projects in wind power generation in 1994. 
He was the pioneer of the Group Captive 
Power Producer concept in Tamil Nadu 
State and developed the 18 MW gas-fired 
plant of OPG Energy, a Group entity, 
through to successful operation in 
2004. Since then, Mr Gupta has been 
responsible for the construction and 
developments of the power plants of the 
OPG Group as well as its overall strategy, 
growth and direction.
Background and experience
Mr V Narayan Swami has over 30 years’ 
experience in finance and management. 
Mr Swami started his career with the State 
Bank of India before moving to Ashok 
Leyland Limited in 1976. For 12 years until 
1993, he held a variety of positions within 
Standard Chartered Bank including as 
Senior Manager – Corporate Division for 
Southern India. Later Mr Swami joined 
Essar Global Ltd, Dubai, as Executive 
Director, subsequently becoming CFO of 
Essar Telecom Group where he played a 
key role in the entry and planned exit of 
Swisscom from the venture along with the 
simultaneous induction of Hutchinson 
Whampoa in the business. Mr Swami 
was Director and Group CFO of Best & 
Crompton Engineering Limited, listed on 
the Bombay Stock Exchange, before 
joining OPG in 2007 as Finance Director.
Mr Munish Chandra Gupta Non-executive Chairman
Mr Arvind Gupta Managing Director and Chief Executive Officer
Mr V Narayan Swami Finance Director 35    OPG Power Ventures Plc Annual report and accounts 2014 http://www.opgpower.com
Financial statements Directors’ report Strategic report
Background and experience
Mr Martin Gatto has considerable 
experience as a senior financial 
professional and has worked at a number 
of large UK quoted public companies.  
He is a graduate of Brunel University and  
is a Fellow of the Chartered Institute of 
Management Accountants. During his 
career, Mr Gatto gained international 
experience at Hilton International Company 
where he was responsible for business 
development and property. Later, as Chief 
Financial Officer of British Energy Plc, 
Midlands Electricity Plc and Somerfield 
Plc, he was responsible for the successful 
execution of turnaround strategies. He is 
also the Chairman of Medico – Dental 
Holdings Limited.
Background and experience
Mr P Michael Grasby is a Chartered 
Engineer and has been associated with the 
UK and international power industry for 
many years. He was manager of the Drax 
Power Station between 1991 and 1995 
and director of operations for National 
Power, with responsibilities for over 16,000 
MW of generating capacity, until 1998. 
Following the demerger of National Power 
in 1999, he joined International Power as 
senior vice-president for global operations 
and retired in 2002. Mr Grasby has 
experience of power company 
directorships in the Czech Republic, 
Portugal, Turkey and Pakistan. Mr Grasby 
was formerly a Non-executive Director of 
Drax Plc where he chaired the Health and 
Safety Committee and sat on the Audit, 
Remuneration and Nominations 
Committees; he retired from the Drax 
Board in April 2011. He was also formally 
a Director of Strategic Dimension 
Technical, a London based Executive 
Recruitment company.
Background and experience
Mr Ravi Gupta is the brother of Mr Arvind 
Gupta and throughout his career has been 
involved with family businesses. He is one 
of the founders of Kanishk Steel and its 
Chairman. Mr Gupta has also been 
associated with the flour mill industry, 
setting up a new flour mill in 1988 in Tamil 
Nadu State, Salem Food Products Limited, 
where he is Managing Director.
Mr Martin Gatto Senior Independent Non-executive Director
Mr P Michael Grasby Independent Non-executive Director
Mr Ravi Gupta Non-executive Director 36    OPG Power Ventures Plc Annual report and accounts 2014
Corporate governance report
Financial year ended 31 March 2014
Introduction
The Board is committed to good corporate governance practices. 
The Company was admitted to trading on AIM in May 2008. 
Accordingly, compliance with the governance framework 
contained in the UK Corporate Governance Code published by  
the Financial Reporting Council (the ‘Code’) is not mandatory. 
Nevertheless, the Company remains committed to high standards 
of corporate governance and endeavours to comply with the Code 
to the extent practicable for a public company of its size.
This report describes how the Company has applied, or how it 
intends to apply, the principles set out in the Code. 
Compliance with the Code
Since admission to AIM, the Group has grown substantially against 
a background of difficult trading conditions within the electricity 
generation sector. As reported in the Strategic Report the year has 
seen a further step change in the Group’s scale and profitability 
with all business units delivering a strong performance and, the 
Board anticipates further growth with two major projects soon to 
be completed. With the primary focus therefore being on delivering 
its current portfolio, the Board has adopted an approach to 
governance that is proportionate and commensurate with the 
current size and complexity of the Group. The Board notes the 
following areas of non-compliance with the Code with comments 
on each as appropriate:
1. Schedule of Matters Reserved (A.1.1)
At present, the Board reviews and adopts the Group’s strategy, 
plan and key risks, policies and procedures. The Board will in 
due  course adopt a schedule of matters specifically reserved to 
it for decision. 
2. Division of Responsibilities (A.2.1)
As explained in greater detail below, there is a clear separation 
between the roles and responsibilities of the Chairman and Chief 
Executive Officer. The Code further requires that this be set out 
in writing and agreed by the Board and this is to be done in 
due course. 
3. Non-executive Directors (A.4.2)
The Code requires the Non-executive Directors, led by the Senior 
Independent Director, to meet without the Chairman to appraise 
the Chairman’s performance. The Board will consider the issue of 
evaluation, including evaluating the performance of the Chairman, 
in due course as the Board’s principal focus in these early years 
since listing has been to deliver projects.
4. Nominations Committee (B.2.1) 
The Board will at an appropriate time establish a Nominations 
Committee. It will meet as and when required, its primary function 
being to provide a formal and transparent procedure for the 
appointment of new Directors to the Board and to advise generally 
on issues relating to Board composition and balance. In 
appropriate cases, recruitment consultants may be used to assist 
in the process. As and when a Nominations Committee is 
appointed, compliance with those provisions of the Code relating 
to this committee will be considered further. 
5. Evaluation (B.6) 
As noted above, the Group continues to grow. The Board will, 
therefore, continue to evaluate the balance of skills, experience, 
independence and knowledge required to ensure that its 
composition is appropriate to the Group’s size and complexity. 
At the appropriate time, the Board will give further consideration 
to the issue of evaluating its performance and that of its principal 
committees and the individual Directors.
Operation of the Board
Board of Directors
The Board comprises the following individuals:
Executive
1. Arvind Gupta (Managing Director and Chief Executive Officer); 
and
2. V Narayan Swami (Finance Director).
Non-executive
1. Munish C Gupta (Non-executive Chairman);
2. Martin Gatto (Senior Independent Director);
3. Michael Grasby; and
4. Ravi Gupta.
The Board considers that, as at the date of this report, it complies 
with Code provision B.1.2, which requires that, in the case of 
smaller companies, there should be a minimum of two 
independent Non-executive Directors. In addition to the Chairman, 
Michael Grasby and Martin Gatto are considered to be 
independent under the Code.
Biographical details of all the Directors at the date of this report 
are set out on pages 34 to 35 together with details of their 
membership, as appropriate, of the Board Committees. The Board 
is responsible for setting the Company’s objectives and policies, 
and providing effective leadership and the controls required for 
a publicly listed company. Directors receive papers for their 
consideration in advance of each Board meeting, including reports 
on the Group’s operations to ensure that they remain briefed on 
the latest developments and are able to make fully informed 
decisions. The Board met four times during the year under review. 
The Executive Committee supports the Board in implementing 
strategy and reports relevant matters to the Board for its 
consideration and approval. The Executive Committee (‘ExCo’) 
met ten times during the year.
All Directors have access to the advice and services of the 
Company Secretary, who is responsible for ensuring that Board 
procedures are followed and that applicable rules and regulations 
are complied with. 
Directors have the right to request that any concerns they have 
are recorded in the appropriate committee or Board minutes. 
Informal procedures are in place for Directors to take independent 
professional advice at the Company’s expense although these are 
not currently set down in writing.
The Company maintains Directors’ and officers’ liability insurance 
and indemnity cover, the level of which is reviewed annually.
Chairman, Chief Executive Officer, and Senior Independent 
Director
The roles of the Chairman and Chief Executive Officer are held by 
different individuals and there is a clear separation of roles. The 
Chairman’s key responsibilities are the effective running of the 
Board, ensuring that the Board plays a full and constructive part 
in the development and determination of the Group’s strategy 
and overseeing the Board’s decision-making process. The key 
responsibilities of the Chief Executive Officer are managing the 
Group’s business, proposing and developing the Group’s strategy 
and overall commercial objectives in consultation with the Board 
and, as leader of the executive team, implementing the decisions 
of the Board and its Committees. 
Martin Gatto, the Senior Independent Director, is available to 
shareholders who have concerns that cannot be resolved through 
discussion with the Chief Executive Officer or Chairman. 37    OPG Power Ventures Plc Annual report and accounts 2014 http://www.opgpower.com
Strategic report Directors’ report Financial statements
Re-election of Directors
At every AGM, one-third of the Directors for the time being (excluding any Director appointed since the previous AGM) or, if their number 
is not three or a multiple of three, the number nearest to one-third, shall retire from office by rotation. On this basis, Munish Gupta and 
Ravi Gupta will offer themselves for re-election at the forthcoming AGM.
Information and professional development
Prior to the Company’s admission to AIM in May 2008, all Directors received a briefing from the Company’s nominated adviser of their 
duties, responsibilities and liabilities as a Director of an AIM company and receives updates from the nominated adviser in order to keep 
abreast of regulatory changes. Directors are encouraged to keep abreast of developments and attend training courses to assist them 
with their duties.
In addition to the formal meetings of the Board, the Chairman is available to the other Non-executive Directors to discuss any issues of 
concern they may have relating to the Group or as regards their area of responsibility and to keep them fully briefed on ongoing matters 
relating to the Group’s operations.
The Chairman is responsible for ensuring that new Directors each receive a full, formal and tailored induction on joining the Board as 
required by provision B.4.1 of the UK Corporate Governance Code.
Board performance
As noted above, the Board will in due course consider the most appropriate methodology for evaluating its performance and that of its 
principal committees and the individual Directors.
Meetings of the Board and its Committees
The following table sets out the number of meetings of the Board and its Committees during the year under review and individual 
attendance by the relevant members at these meetings: 
Board Meetings
Board Committee Meetings
Audit Remuneration
Number Attended Number Attended Number Attended
Arvind Gupta 4 3 N/A N/A N/A N/A
V Narayan Swami 4 4 N/A N/A N/A N/A
Munish C Gupta 4 3 2 2 0 0
Martin Gatto 4 4 2 2 0 0
Michael Grasby 4 4 2 2 0 0
Ravi Gupta 4 3 2 2 0 0
Number of meetings held during the year 4 2 0
Board Committees
Audit Committee
The members of the Audit Committee are Munish Gupta, Martin 
Gatto, Michael Grasby and Ravi Gupta. Martin Gatto is considered 
to have recent, relevant financial experience. The Chief Executive 
and Finance Director and a representative of the auditors are 
normally invited to attend meetings of the Committee.
The primary duty of the Audit Committee is to oversee the 
accounting and financial reporting process of the Group, the 
external audit arrangements, the internal accounting standards 
and practice, the independence of the external auditor, the 
integrity of the Group’s external financial reports and the 
effectiveness of the Group’s risk management and internal 
control system. The Audit Committee will meet regularly with 
the external auditor.
The Audit Committee considered the following matters during the 
year under review:
•	 The Annual Report and Accounts for the year ended 31 March 
2013; and
•	 The unaudited results for the half-year to 30 September 2013.
Remuneration Committee 
The Remuneration Committee currently consists of Munish Gupta, 
Martin Gatto, Michael Grasby and Ravi Gupta. Ravi Gupta is 
not present when any remuneration matter relating to the Chief 
Executive, Arvind Gupta (his brother), is discussed. 
The primary duty of the Remuneration Committee is to determine 
and agree with the Board the framework or broad policy for the 
remuneration of the Executive Directors, such other members 
of the executive management team of the Group as is deemed 
appropriate. The remuneration of the Non-executive Directors is 
a matter for the executive members of the Board. No Director 
may be involved in any decisions as to his own remuneration.
Full details of the role and composition of the Remuneration 
Committee, the remuneration policy of the Company and its 
compliance with the Code Provisions relating to remuneration are 
set out in the Directors’ Remuneration Report on pages 39 to 41. 38    OPG Power Ventures Plc Annual report and accounts 2014
Accountability and Audit
Risk management and internal control
The Board has overall responsibility for the Group’s system of 
internal control, which includes risk management. The Board has 
delegated the responsibility for reviewing the effectiveness of 
its internal control systems to the Audit Committee. The Audit 
Committee will review these systems, policies and processes for 
tendering, authorisation of expenditure, fraud and the internal 
audit plan.
The system of internal control is designed to manage, rather than 
eliminate, the risk of failure to achieve business objectives and 
can only provide reasonable and not absolute assurance against 
material misstatement or loss. 
The Board has instructed ExCo to be a leading part of its process 
to identify, evaluate and manage the significant risks the Group 
faces and which is in accordance with the current guidance on 
internal control. The Audit Committee will assist the Board in 
discharging its review responsibilities. A summary of the key risks 
facing the Group and mitigating actions is described on pages 24 
to 25.
Assurance
Grant Thornton has been auditor for the Group for the last four 
years. The Committee considers that, at this early stage in the 
Group’s development, it is more efficient to use a single audit firm 
to provide certain non-audit services for transactions and tax 
matters. However, to regulate the position, the Committee will at 
the appropriate time establish a policy on the provision of non-
audit services by the external auditor. That policy will set out the 
external auditor’s permitted and prohibited non-audit services and 
a fee threshold requiring prior approval by the Audit Committee for 
any new engagement.
Going concern 
A statement on the Directors’ position regarding the Company as 
going concern is contained in the Director’s report on page 42.
Shareholder relations and the Annual General Meeting
The Board is committed to maintaining an ongoing dialogue 
with its shareholders. The Directors are keen to build a mutual 
understanding of objectives with its principal shareholders. To this 
end, the Chief Executive, Senior Independent Director and Finance 
Director together met with a number of institutional shareholders 
during the year. The Directors also encourage communications 
with private shareholders and encourages their participation in the 
Annual General Meeting.
The Chairman is primarily responsible for ensuring the effective 
communication of shareholders’ views to the Board as a whole 
and updates the Board accordingly. Board members keep abreast 
of shareholder opinion and discuss strategy and governance 
issues with them as appropriate. 
Notice of the Annual General Meeting will be sent to shareholders 
21 days before the meeting. The voting results will be made 
available on the Company’s website following the meeting.
The Company uses its corporate website (www.opgpower.com) 
to communicate with its institutional shareholders and private 
investors and posts the latest announcements, press releases and 
published financial information together with updates on current 
projects and other information about the Group.
Corporate governance report continued 39    OPG Power Ventures Plc Annual report and accounts 2014 http://www.opgpower.com
Strategic report Directors’ report Financial statements
Introduction
This report sets out information about the remuneration of the 
Directors of the Company for the year ended 31 March 2014. 
This report has been substantially prepared in accordance 
with Schedule 8 of the Large and Medium-sized Companies 
and Groups (Accounts and Reports) Regulations 2008 (the 
‘Regulations’) in line with the relevant requirements of the 
Financial Conduct Authority’s Listing Rules. 
Remuneration Committee
The members of the Remuneration Committee are Munish Gupta 
(Chairman), Martin Gatto, Ravi Gupta and Michael Grasby who, 
with the exception of Ravi Gupta, are all independent Non-
executive Directors. 
Terms of reference have been approved for the Remuneration 
Committee and its primary duty is to determine and agree with 
the Board the framework or broad policy for the remuneration 
of the Executive Directors, senior managers and such other 
members of the executive management team of the Group as is 
deemed appropriate. The remuneration of the Non-executive 
Directors is a matter for the Chairman and the executive 
members of the Board. 
The principal responsibilities of the Committee include:
•	 Assessing and setting compensation levels for Directors and 
senior managers;
•	 Reviewing the ongoing appropriateness and relevance of the 
remuneration policy to ensure that members of the executive 
team are provided with incentives that encourage enhanced 
performance;
•	 Reviewing the design of share incentive plans for the approval 
of the Board and shareholders;
•	 Ensuring that contractual terms on termination are such that 
failure is not rewarded and that the duty to mitigate losses is 
fully recognised in the drafting of Directors’ service 
agreements and letters of appointment. 
In fulfilling these duties, the Committee shall be cognisant of 
remuneration trends across the Group and within the sector in 
which the Group operates.
The Chief Executive Officer and external advisers may be invited 
to attend meetings of the Remuneration Committee but do not 
take part in the decision making. 
Attendance at meetings of the Remuneration Committee by 
individual members is detailed in the Corporate Governance 
Report on page 37.
Advisers
During the year, the Board received externally commissioned 
advice in connection with the appropriateness of the current 
executive management incentive arrangements to meet the 
Group’s objective of providing an incentive plan in the context of 
the Group’s overall approach to rewards and incentives. The 
Board continues to consult its external advisers on an 
appropriate arrangement and a new arrangement is expected to 
be implemented shortly.
Directors’ remuneration report
Remuneration policy
The Remuneration Committee seeks to maintain a remuneration 
policy to ensure that the Company is able to attract, retain and 
motivate its Executive Directors and senior management. 
The retention of key management and the alignment of 
management incentives with the creation of shareholder value 
are key objectives of this policy. 
The Group therefore sets out to provide competitive remuneration 
for all its management and employees appropriate to the business 
environment in the market in which it operates and in recognition 
of their contribution to Group performance. To achieve this, the 
remuneration package is based upon the following principles:
•	 total rewards should be set to provide a fair and attractive 
remuneration package; 
•	 appropriate elements of the remuneration package should 
be designed to reinforce the link between performance and 
contribution to the Group’s success and reward; and
•	 Executive Directors’ incentives should be aligned with the 
interests of shareholders. 
The remuneration strategy is designed to be in line with the 
Group’s fundamental values of fairness, competitiveness and 
equity and also to support the Group’s corporate strategy. The 
Group seeks to increasingly align the interests of shareholders 
with those of Directors and senior employees by giving the latter 
opportunities and encouragement to build up a shareholding 
interest in the Company. In that regard, a new updated 
remuneration arrangement is expected to be adopted shortly.
Long-term incentives
The Remuneration Committee believes that it is appropriate to 
operate share incentive schemes to encourage Executive Directors 
and senior employees to meet the Group’s long-term strategic and 
financial objectives set by the Board. 
Stock option plan
Under the stock option plan approved by the Board on 16 July 
2009, Arvind Gupta and Martin Gatto were granted awards (see 
table on page 40). Options granted must be exercised within 10 
years of the date of grant and vesting depends on achievement of 
the following performance conditions:
1. The power plant at Kutch in the state of Gujarat must have 
been in commercial operation for three months; and
2. The closing share price must be at least £1 for three 
consecutive business days.
Annual bonus
No bonuses were paid during the year. 40    OPG Power Ventures Plc Annual report and accounts 2014
Service agreements, notice periods and termination payments
The Service agreements for the Executive Directors are for no fixed term and may in normal circumstances be terminated on the notice 
periods set out in the table below. The Company reserves the right and discretion to pay the Executive Directors in lieu of notice. If the 
Company terminates the employment of an Executive Director by exercising its right to pay in lieu of notice, the Company is required to 
make a payment equal to the aggregate of basic salary and the cost to the Company of providing other contractual benefits for the 
unexpired portion of the duration of any entitlement to notice.
The key terms of the Executive Directors’ service agreements are as follows:
Name Position Date of contract Notice period Current salary (p.a.) £
Arvind Gupta Managing Director and 
Chief Executive Officer
23 May 2008 12 months’ prior written notice
on either side
258,108
V Narayan Swami Finance Director 23 May 2008 Three months’ prior written notice 
on either side
52,143
Benefits-in-kind
Under their service agreements, Mr Arvind Gupta and Mr V Narayan Swami are entitled to medical, travel, insurance, accommodation 
and other allowances. 
Chairman and Non-executive Directors
The remuneration of the Chairman of the Company and the Non-executive Directors consists of fees that are paid quarterly in arrears. 
The Chairman does not currently participate in any long-term incentive or annual bonus schemes, nor does any pension entitlement 
accrue. Neither the Chairman nor any of the Non-executive Directors has a contract of employment with the Company. Each has instead 
entered into a contract for services with the Company.
Non-executive Directors’ contracts for services 
Munish Gupta, Martin Gatto, Michael Grasby and Ravi Gupta have each signed a contract for services with the Company. They were 
each appointed for an initial period of 12 months and, under the terms of their contracts for services, their appointments were renewable 
for a further period by mutual agreement, subject to re-election, when appropriate, by the Company in general meeting. A formal process 
for evaluating the performance of the Board, its Committees and the individual Directors will be introduced in due course.
The key terms of the Non-executive Directors’ letters of appointment are as follows:
Director Date of appointment Notice period Fees p.a. £
Munish Gupta 6 May 2008 12 months’ prior written notice on either side 35,000
Martin Gatto 6 May 2008 Three months’ prior written notice on either side 35,000
Michael Grasby 6 May 2008 Three months’ prior written notice on either side 35,000
Ravi Gupta 12 May 2008 12 months’ prior written notice on either side 35,000
External appointments 
It is the Board’s policy to allow the Executive Directors to accept directorships of other companies provided that they have obtained the 
consent of the Board. Any such directorships must be formally notified to the Board. 
Directors’ interests in ordinary shares 
The interests of Directors in the ordinary share capital of the Company during the year were as follows:
31 March 2014 31 March 2013
Arvind Gupta
1
178,886,428 178,886,428
Michael Grasby 10,000 10,000
Martin Gatto 60,000 60,000
Munish Gupta 9,800 9,800
V Narayan Swami 10,300 10,300
Total 178,976,528 178,976,528
1 Arvind Gupta and related entities.
Directors’ remuneration report continued 41    OPG Power Ventures Plc Annual report and accounts 2014 http://www.opgpower.com
Strategic report Directors’ report Financial statements
There were no changes to Directors’ interests between 31 March 2014 and the date of this report.
No Director had any interest in any contract of significance with the Group during the year ended 31 March 2014 other than their 
service contracts.
Directors’ remuneration for the period 1 April 2013 to 31 March 2014. 
Salary, annual bonus and benefits
£ Salary/fees Benefits-in-kind Annual Bonus
Total 
31 March 2014
Total 
31 March 2013
Non-executive Chairman
Munish Gupta 35,000 – – 35,000 35,000
Executive Directors
Arvind Gupta 258,108 – – 258,108 279,613
V Narayan Swami 52,143 – – 52,143 58,283
Non-executive Directors
Martin Gatto 35,000 – – 35,000 35,000
Michael Grasby 35,000 – – 35,000 35,000
Ravi Gupta 35,000 – – 35,000 35,000
Total 450,251 – – 450,251 477,896
Note: No consideration was paid or received by third parties for making available the services of any Executive or Non-executive Director.
Directors’ share options
Directors’ share options – options outstanding
Movements during the period
Option granted
Option 
price 
£ 1 April 2013 Granted Lapsed Exercised 31 March 2014 Latest exercise date
Arvind Gupta 16 July 2009 £0.60 21,524,234 Nil Nil Nil 21,524,234 By 15 July 2019
Martin Gatto 16 July 2009 £0.60 1,000,000 Nil Nil Nil 1,000,000 By 15 July 2019
At 31 March 2014 the closing mid-market price of the Company’s shares was 83.75p. During the year under review, the Company’s 
closing mid-market share price ranged between a low of 50.25p and a high of 88.0p.
This report has been approved by the Board of Directors of the Company.
M C Gupta
Chairman, Remuneration Committee
20 May 2014 42    OPG Power Ventures Plc Annual report and accounts 2014
The Directors present their report, together with the audited 
financial statements of the Group, for the year ended 31 March 
2014. The Group’s business activities, together with the factors 
likely to affect its future development, performance and position 
are set out in the Strategic Report on pages 1 to 33 which is 
incorporated into this report by reference together with the 
Corporate Governance Report on pages 36 to 38. These together 
contain certain forward looking statements and forecasts with 
respect to the financial condition, results, operations and business 
of OPG Power Ventures Plc which may involve risk and uncertainty 
because they relate to events and depend upon circumstances 
that will occur in the future. There are a number of factors that 
could cause actual results or developments to differ materially 
from those expressed or implied by these forward looking 
statements and forecasts. Nothing in this annual report to 
shareholders should be construed as a profit forecast. 
Results and dividends
The audited financial statements for the year ended 31 March 2014 
are set out on pages 46 to 73. The Group profit for the year after 
taxation was £14.56m (2013: £8.82m). The Board does not 
recommend the payment of a final dividend, considering the need 
to conserve cash for the continuing expansion of the business. No 
dividend was paid for the half year to 30 September 2013 (no 
dividend was paid for the year ended 31 March 2013).
Directors
Details of changes to the Board during the period and of the 
Directors offering themselves for re-election at the forthcoming 
Annual General Meeting (‘AGM’) are set out in the Corporate 
Governance Report on page 37.
Details of Directors’ service agreements are set out in the 
Directors’ Remuneration Report on page 40.
The interests of the Directors in the shares of the Company are 
shown in the Directors’ Remuneration Report on page 40.
Biographies of all the Directors at the date of this report are set out 
on pages 34 to 35.
Related parties
Details of related party transactions are set out in note 21 to the 
financial statements.
Directors’ liability insurance and indemnities
The Company maintains liability insurance for the Directors and 
Officers of all Group companies.
Indemnities are in force under which the Company has agreed to 
indemnify the Directors to the extent permitted by applicable law 
and the Company’s Articles of Association in respect of all losses 
arising out of, or in connection with, the execution of their powers, 
duties and responsibilities as Directors of the Company or any of 
its subsidiaries. 
Neither the Group’s liability insurance nor indemnities provides 
cover in the event that a Director or Officer is proved to have acted 
fraudulently or dishonestly.
Directors’ report
Share capital 
The issued share capital of the Company at 31 March 2014 was 
£294.39m comprising 351,504,795 ordinary shares of 83.75 pence 
each, of which there are no designated treasury shares.
The Directors will be seeking authority at the forthcoming Annual 
General Meeting to renew their authority to allot shares and also a 
further authority enabling the Company to purchase its own 
shares. Full details of these resolutions, together with explanatory 
notes, are contained in the Notice of Annual General Meeting.
Political donations
The Group has made no political donations during the year under 
review.
Going concern
As highlighted in note 19 to the financial statements, the Group 
meets its day to day working capital requirements through a bank 
facility which is renewed annually in June.
Further information on the Group’s business activities, together 
with the factors likely to affect its future development, performance 
and position is set out in the Strategic Report on pages 1 to 33. 
Further information on the financial position of the Group, its cash 
flows, liquidity position and borrowing facilities are described in the 
Financial Review on pages 26 to 29. In addition, note 26 to the 
financial statements details the Group’s objectives, policies and 
processes for managing its capital and its exposures to credit risk 
and liquidity risk.
The Group’s forecasts and projections, taking account of possible 
changes in trading performance, show that the Group should be 
able to operate within the level of its current facility.
After making enquiries, the Board has a reasonable expectation 
that the Company and the Group have adequate resources to 
continue in operational existence for the foreseeable future. 
Accordingly, they continue to adopt the going concern basis in 
preparing the Annual Report and Accounts. 43    OPG Power Ventures Plc Annual report and accounts 2014 http://www.opgpower.com
Strategic report Directors’ report Financial statements
Substantial shareholdings 
Details of substantial shareholdings are set out on the Company’s 
website at www.opgpower.com.
The Company has been notified, in accordance with the 
Disclosure and Transparency Rules of the Financial Conduct 
Authority, of the following interests (whether directly or indirectly 
held) in 3% or more of the Company’s total voting rights at 
31 March 2014: 
Percentage of 
voting rights 
and issued 
share capital
No of 
ordinary shares
Gita Investments Limited & 
related entities
1
 50.89% 178,886,428
M&G Investment Management 
Limited 12.50% 43,947,803
Audley Capital Management Ltd 5.59% 19,659,544
Legal & General Investment 
Management Limited 5.35% 18,800,358
FOUR Capital Partners Limited 4.94% 17,347,148
British Steel Pension Scheme 3.41% 12,000,000
1 Beneficial interest in these shareholdings vests with Arvind Gupta.
Annual General Meeting (’AGM’)
The notice convening the meeting, together with details of the 
special business to be considered and explanatory notes for 
each resolution, will be contained in a separate document sent 
to shareholders. It is also available on the Company’s website, 
www.opgpower.com, where a copy can be viewed and 
downloaded in a pdf format which may be printed or saved by 
following the link to the Investor Centre/Shareholder Circulars.
Registered agent
The registered agent of the Company at 31 March 2014 was IOMA 
Fund and Investment Management Limited who served throughout 
the year and has continued to date.
Financial instruments
Information on the Group’s financial risk management objectives 
and policies and its exposure to credit risk, liquidity risk, interest 
rate risk and foreign currency risk can be found on pages 69 to 70.
Auditor
Grant Thornton have expressed their willingness to continue in 
office as auditors and a resolution proposing their reappointment 
will be proposed at the forthcoming AGM.
Disclosure of information to the auditor
As required by Section 418 of the Companies Act 2006, each 
director serving at the date of approval of the financial statements 
confirms that:
1. to the best of their knowledge and belief, there is no information 
relevant to the preparation of their report of which the 
Company’s auditors are unaware; and
2. each Director has taken all the steps a Director might 
reasonably be expected to have taken to be aware of relevant 
audit information and to establish that the Company’s auditors 
are aware of that information.
Words and phrases used in this confirmation should be interpreted 
in accordance with the provisions of the Companies Act 2006.
This report was approved by the Board of Directors on 20 May 
2014 and signed on its behalf by.
Philip Scales
Company Secretary
OPG Power Ventures Plc
Ioma House
Hope Street
Douglas
Isle of Man
IM1 1AP
20 May 2014 44    OPG Power Ventures Plc Annual report and accounts 2014
Statement of Directors’ responsibilities
The Directors are responsible for preparing the Annual Report, 
the Directors’ Remuneration Report and the Group and the Parent 
Company financial statements. The Directors are required to 
prepare financial statements for the Group in accordance with 
International Financial Reporting Standards (‘IFRS’) as adopted 
for use in the European Union and have also elected to prepare 
financial statements for the Company in accordance with IFRS as 
adopted for use in the European Union. Company law requires the 
Directors to prepare such financial statements in accordance with 
IFRS and the Companies Act 2006.
International Accounting Standard 1 requires that financial 
statements present fairly for each financial year the Group’s 
and Company’s financial position, financial performance and 
cash flows. This requires the fair presentation of the effects of 
transactions, other events and conditions in accordance with the 
definitions and recognition criteria for assets, liabilities, income 
and expenses set out in the International Accounting Standards 
Board’s ‘Framework for the Preparation and Presentation of 
Financial Statements’. In virtually all circumstances, a fair 
presentation will be achieved by compliance with all applicable 
International Financial Reporting Standards. Directors are also 
required to:
•	 select suitable accounting policies and apply them consistently;
•	 make judgements and estimates that are reasonable and 
prudent;
•	 state whether applicable accounting standards have been 
followed, subject to any material departures disclosed and 
explained in the financial statements;
•	 present information, including accounting policies, in a manner 
that provides relevant, reliable, comparable and understandable 
information; and
•	 provide additional disclosures when compliance with specific 
requirements in IFRS is insufficient to enable users to 
understand the impact of particular transactions, other events 
and conditions on the entity’s financial position and financial 
performance.
The Directors are responsible for keeping adequate accounting 
records which disclose with reasonable accuracy at any time 
the financial position of the Group and of the Company, for 
safeguarding the assets, for taking reasonable steps for the 
prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of 
the Group website. Legislation in the United Kingdom governing 
the preparation and dissemination of the financial statements may 
differ from legislation in other jurisdictions. 45    OPG Power Ventures Plc Annual report and accounts 2014 http://www.opgpower.com
Strategic report Directors’ report Financial statements
Independent Auditors’ Report 
to the Members of OPG Power Ventures Plc
We have audited the accompanying group financial statements of 
OPG Power Ventures Plc for the year ended 31 March 2014 which 
comprise the Consolidated Statement of Comprehensive Income, 
the Consolidated Statement of Financial Position, the Consolidated 
Statement of Changes in Equity, the Consolidated Statements 
of Cash Flow and the related notes. The financial reporting 
framework that has been applied in their preparation is applicable 
law and International Financial Reporting Standards (IFRS) (as 
adopted by the European Union).
This report is made solely to the Company’s members, as a body, 
in accordance with Section 80C(2) of the Isle of Man Companies 
Act 2006. Our audit work has been undertaken so that we might 
state to the Company’s members those matters we are required 
to state to them in an auditors’ report and for no other purpose. 
To the fullest extent permitted by law, we do not accept or 
assume responsibility to anyone other than the Company and the 
Company’s members as a body, for our audit work, for this report, 
or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the directors’ responsibilities statement, 
the directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair 
view. Our responsibility is to audit and express an opinion on 
the financial statements in accordance with applicable law and 
International Standards on Auditing (UK and Ireland). Those 
standards require us to comply with the Auditing Practices 
Board’s Ethical Standards for Auditors.
Scope of the audit
An audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement, whether caused by fraud or error. This includes an 
assessment of: whether the accounting policies are appropriate 
to the Group’s circumstances and have been consistently applied 
and adequately disclosed; the reasonableness of significant 
accounting estimates made by the directors; and the overall 
presentation of the financial statements. In addition, we read all 
the non-financial information in the Strategic Report and corporate 
governance statements to identify material inconsistencies with the 
audited financial statements. If we become aware of any apparent 
material misstatements or inconsistencies we consider the 
implications for our report.
Opinion on financial statements
In our opinion the group financial statements give a true and 
fair view, in accordance with International Financial Reporting 
Standards (IFRS) (as adopted by the European Union), of the state 
of the Group’s affairs as at 31 March 2014 and of its profit for the 
year then ended.
Grant Thornton
Chartered Accountants 
Third Floor
Exchange House 
54/62 Athol Street 
Douglas
Isle of Man 
IM1 1JD 46    OPG Power Ventures Plc Annual report and accounts 2014
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated)
Particulars Note 31 March 2014 31 March 2013
Revenue 98,805,940 56,191,873
Cost of revenue 6 (62,155,041) (34,623,263)
Gross profit 36,650,899 21,568,610
Other income 7 260,738 715,676
Distribution cost (1,202,301) (651,740)
General and administrative expenses 6 (8,953,321) (7,042,402)
Operating profit 26,756,015 14,590,144
Financial costs 8 (9,791,910) (6,138,999)
Financial income 9 985,156 2,084,106
Profit before tax 17,949,261 10,535,251
Tax expense 10 (3,385,087) (1,710,839)
Profit for the year 14,564,174 8,824,412
Attributable to:
– Owners of the parent 14,545,956 8,726,299
– Non-controlling interest 18,218 98,113
14,564,174 8,824,412
Earnings per share 21
Basic earnings per share (in pence) 4.138 2.483
Diluted earnings per share (in pence) 4.117 2.483
Other Comprehensive Income
Items that will be reclassified subsequently to profit or loss
Available-for-sale financial assets
– Reclassification to profit or loss (22,394) 109,483 
– Current year gains/(losses) 32,633 (85,013)
Currency translation differences on translation of foreign operations (21,677,794) 1,162,212
Items that will not be reclassified subsequently to profit or loss
Currency translation differences on translation of foreign operations (20,056) 3,301
Other comprehensive income/(loss) (21,687,611) 1,189,983
Total comprehensive income/(loss) for the year (7,123,437) 10,014,395
Attributable to:
– Owners of the parent (7,121,568) 9,912,964
– Non-controlling interest (1,869) 101,431
(7,123,437) 10,014,395
The financial statements were authorised for issue by the Board of Directors on 20 May 2014 and were signed on its behalf by:
Arvind Gupta   V Narayan Swami
Chief Executive Officer  Chief Financial Officer 47    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
Consolidated Statement of Financial Position
As at 31 March 2014
(All amounts in £, unless otherwise stated)
Particulars Note 31 March 2014 31 March 2013
Assets
Non-current
Intangible assets 11 474,660 –
Property, plant and equipment 12 279,621,282 182,508,796
Investments and other assets 13 729,361 1,160,587
Restricted cash 16 190,860 394,782
Total non-current assets 281,016,163 184,064,165
Current
Trade and other receivables 14 21,008,401 34,814,660
Inventories 15 12,899,204 6,140,973
Cash and cash equivalents 16 6,636,577 22,906,776
Restricted cash 16 7,456,090 4,705,601
Current tax assets 155,061 104,970
Investments and other assets 13 64,135,542 45,708,623
Total current assets 112,290,875 114,381,603
Total assets 393,307,038 298,445,768
Equity and liabilities
Equity:
Equity attributable to owners of the parent:
Share capital 51,671 51,671
Share premium 124,316,524 124,316,524
Other components of equity (21,821,894) (1,126,807)
Retained earnings 33,856,249 19,311,138
Total 136,402,550 142,552,526
Non-controlling interest 225,717 186,012
Total equity 136,628,267 142,738,538
Liabilities
Non-current
Borrowings 19 186,578,491 103,898,137
Trade and other payables 20 24,997,526 3,369,758
Deferred tax liability 10 1,509,853 990,316
Total non-current liabilities 213,085,870 108,258,211
Current
Borrowings 19 8,191,455 4,972,199
Trade and other payables 20 35,174,303 42,114,288
Other liabilities 227,143 278,989
Current tax liabilities – 83,543
Total current liabilities 43,592,901 47,449,019
Total liabilities 256,678,771 155,707,230
Total equity and liabilities 393,307,038 298,445,768
The financial statements were authorised for issue by the Board of Directors on 20 May 2014 and were signed on its behalf by:
Arvind Gupta   V Narayan Swami
Chief Executive Officer  Chief Financial Officer 48    OPG Power Ventures Plc Annual report and accounts 2014
Consolidated Statement of Changes in Equity
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated)
Group
Issued capital 
(no. of shares) Share capital Share premium Other reserves
Foreign currency 
translation reserve Retained earnings
Total of 
parent equity
Non-controlling 
interest Total equity
Balance at 1 April 2013 351,504,795 51,671 124,316,524 5,977,855 (7,104,661) 19,311,138 142,552,526 186,012 142,738,538
Transfers during the year 46 (1,834) (845) (2,633) 41,574 38,941
Employee share-based payment options 974,222 974,222 974,222
Transactions with owners 351,504,795 51,671 124,316,524 6,952,123 (7,106,495) 19,310,293 143,524,115 227,586 143,751,701
Profit for the year from operating activities 14,545,956 14,545,956 18,218 14,564,174
Currency translation differences (21,677,794) (21,677,794) (20,056) (21,697,850)
Gains on sale/remeasurement of available-for-sale financial assets 10,272 10,272 (31) 10,239
Total comprehensive income for the year – – – 10,272 (21,677,794) 14,545,956 (7,121,565) (1,869) (7,123,435)
Balance at 31 March 2014 351,504,795 51,671 124,316,524 6,962,395 (28,784,289) 33,856,249 136,402,550 225,717 136,628,266
Balance at 1 April, 2012 351,504,795 51,671 124,316,524 4,979,571 (8,235,982) 10,577,591 131,689,375 62,371 131,751,746
Transfers during the year (refer note 23) (391) (30,892) 7,248 (24,034) 22,210 (1,825)
Employee share-based payment options 974,222 974,222 974,222
Transactions with owners 351,504,795 51,671 124,316,524 5,953,402 (8,266,874) 10,584,839 132,639,563 84,581 132,724,143
Profit for the year from operating activities 8,726,299 8,726,299 98,113 8,824,412
Currency translation differences 1,162,212 1,162,212 3,301 1,165,513
Gains on sale/remeasurement of available-for-sale financial assets 24,453 24,453 17 24,470
Total comprehensive income for the year – – – 24,453 1,162,212 8,726,299 9,912,964 101,431 10,014,395
Balance at 31 March 2013 351,504,795 51,671 124,316,524 5,977,855 (7,104,661) 19,311,138 142,552,526 186,012 142,738,538 49    OPG Power Ventures Plc Annual report and accounts 2014
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Group
Issued capital 
(no. of shares) Share capital Share premium Other reserves
Foreign currency 
translation reserve Retained earnings
Total of 
parent equity
Non-controlling 
interest Total equity
Balance at 1 April 2013 351,504,795 51,671 124,316,524 5,977,855 (7,104,661) 19,311,138 142,552,526 186,012 142,738,538
Transfers during the year 46 (1,834) (845) (2,633) 41,574 38,941
Employee share-based payment options 974,222 974,222 974,222
Transactions with owners 351,504,795 51,671 124,316,524 6,952,123 (7,106,495) 19,310,293 143,524,115 227,586 143,751,701
Profit for the year from operating activities 14,545,956 14,545,956 18,218 14,564,174
Currency translation differences (21,677,794) (21,677,794) (20,056) (21,697,850)
Gains on sale/remeasurement of available-for-sale financial assets 10,272 10,272 (31) 10,239
Total comprehensive income for the year – – – 10,272 (21,677,794) 14,545,956 (7,121,565) (1,869) (7,123,435)
Balance at 31 March 2014 351,504,795 51,671 124,316,524 6,962,395 (28,784,289) 33,856,249 136,402,550 225,717 136,628,266
Balance at 1 April, 2012 351,504,795 51,671 124,316,524 4,979,571 (8,235,982) 10,577,591 131,689,375 62,371 131,751,746
Transfers during the year (refer note 23) (391) (30,892) 7,248 (24,034) 22,210 (1,825)
Employee share-based payment options 974,222 974,222 974,222
Transactions with owners 351,504,795 51,671 124,316,524 5,953,402 (8,266,874) 10,584,839 132,639,563 84,581 132,724,143
Profit for the year from operating activities 8,726,299 8,726,299 98,113 8,824,412
Currency translation differences 1,162,212 1,162,212 3,301 1,165,513
Gains on sale/remeasurement of available-for-sale financial assets 24,453 24,453 17 24,470
Total comprehensive income for the year – – – 24,453 1,162,212 8,726,299 9,912,964 101,431 10,014,395
Balance at 31 March 2013 351,504,795 51,671 124,316,524 5,977,855 (7,104,661) 19,311,138 142,552,526 186,012 142,738,538 50    OPG Power Ventures Plc Annual report and accounts 2014
Consolidated Statement of Cash Flows 
For the year ended 31 March 2014 
(All amounts in £, unless otherwise stated)
Particulars 31 March 2014 31 March 2013
Cash flows from operating activities
Profit for the year before tax 17,949,261 10,535,251
Unrealised foreign exchange loss (384,906) 84,368
Provision for doubtful debts (28,421) 883,329
Financial expenses 9,791,910 6,138,999
Financial income (985,156) (2,084,106)
Share-based compensation costs 974,222  974,222 
Depreciation 2,898,985  1,563,213 
30,215,895 18,095,276
Movements in working capital
Increase in trade and other receivables 8,092,104 (17,566,722)
Increase in inventories (8,086,436) (549,863)
Decrease in other current assets (7,430,911) 346,585 
Increase in trade and other payables 9,226,055 41,484,087
Increase in other liabilities (4,048,037) 9,264,123
Cash generated from operations 27,968,670 51,073,486
Income taxes paid (2,820,669) (2,242,625)
Net cash generated by operating activities 25,148,001 48,830,861
Cash flow from investing activities
Acquisition of property, plant and equipment (128,641,831) (94,798,022)
Finance income 945,830 1,894,936
Dividend income 30,980 180,790 
Movement in restricted cash (3,536,878) (481,508)
Sale/(purchase) of investments, net (8,077,737) (2,062,996)
Net cash used in investing activities (139,279,636) (95,266,800)
Cash flows from financing activities
Proceeds from borrowings 114,548,210 40,110,171
Repayment of borrowings (6,349,335) (3,828,420)
Interest paid (9,517,729) (5,031,418)
Net cash provided by financing activities 98,681,146 31,250,333
Net decrease in cash and cash equivalents (15,450,489) (15,185,606)
Cash and cash equivalents at the beginning of the year 22,906,776 37,876,393
Effect of exchange rate changes on the balance of cash held in foreign currencies (819,710) 215,989
Cash and cash equivalents at the end of the year 6,636,577 22,906,776 51    OPG Power Ventures Plc Annual report and accounts 2014
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1. Corporate information
1.1. Nature of operations
OPG Power Ventures Plc (‘the Company’ or ‘OPGPV’), and its subsidiaries (collectively referred to as ‘the Group’) are primarily engaged in 
the development, owning, operation and maintenance of private sector power projects in India. The electricity generated from the Group’s 
plants is sold principally to public sector undertakings and heavy industrial companies in India or in the short-term market. The business 
objective of the Group is to focus on the power generation business within India and thereby provide reliable, cost effective power to the 
industrial consumers and other users under the ‘open access’ provisions mandated by the Government of India.
1.2. Statement of compliance 
The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards 
(‘IFRS’) and their interpretations as adopted by the European Union (‘EU’) and the provisions of the Isle of Man, Companies Act 2006 
applicable to companies reporting under IFRS.
1.3. General information
OPG Power Ventures Plc, a limited liability corporation, is the Group’s ultimate Parent Company and is incorporated and domiciled 
in the Isle of Man. The address of the Company’s registered Office, which is also the principal place of business, is IOMA House, 
Hope Street, Douglas, Isle of Man 1M1 1JA. The Company’s equity shares are listed on the Alternative Investment Market (‘AIM’) of 
the London Stock Exchange. 
The Consolidated Financial Statements for the year ended 31 March 2014 were approved and authorised for issue by the Board of 
Directors on 20 May 2014.
2. New and revised standards that are effective for annual periods beginning on or after 1 January 2013 
IFRS 10 ‘Consolidated Financial Statements’ (‘IFRS 10’)
IFRS 10 supersedes IAS 27 ‘Consolidated and Separate Financial Statements’ (‘IAS 27’) and SIC 12 ‘Consolidation-Special Purpose 
Entities’. IFRS 10 revises the definition of control and provide extensive new guidance on its application. These new requirements have the 
potential to affect which of the Group’s investees are considered to be subsidiaries and therefore to change the scope of consolidation. 
The requirements on consolidation procedures, accounting for changes in non-controlling interests and accounting for loss of control of a 
subsidiary are unchanged.
Management has reviewed its control assessments in accordance with IFRS 10 and has concluded that there is no effect on the 
classification (as subsidiaries or otherwise) of any of the Group’s investees held during the period or comparative periods covered by 
these financial statements.
IFRS 11 ‘Joint Arrangements’ (‘IFRS 11’)
IFRS 11 supersedes IAS 31 ‘Interests in Joint Ventures’ (‘IAS 31’) and SIC 13 ‘Jointly Controlled Entities – Non-Monetary-Contributions by 
Venturers’. IFRS 11 revises the categories of joint arrangement, and the criteria for classification into the categories, with the objective of 
more closely aligning the accounting with the investor’s rights and obligations relating to the arrangement. In addition, IAS 31’s option of 
using proportionate consolidation for arrangements classified as jointly controlled entities under that Standard has been eliminated. IFRS 
11 now requires the use of the equity method for arrangements classified as joint ventures. 
Management has reviewed its control assessments in accordance with IFRS 11 and has concluded that there is no effect on the 
classification of any of the Group’s investees held during the period or comparative periods covered by these financial statements.
IFRS 12 ‘Disclosure of Interests in Other Entities’ (‘IFRS 12’)
IFRS 12 integrates and makes consistent the disclosure requirements for various types of investments, including unconsolidated 
structured entities. It introduces new disclosure requirements about the risks to which an entity is exposed from its involvement with 
structured entities.
Management has reviewed the impact of IFRS 12 and has concluded that there is no effect on any of the Group’s investees held during 
the period or comparative periods covered by these financial statements.
IFRS 13 ‘Fair Value Measurement’ (‘IFRS 13’)
IFRS 13 clarifies the definition of fair value and provides related guidance and enhanced disclosures about fair value measurements. It 
does not affect which items are required to be fair-valued. The scope of IFRS 13 is broad and it applies for both financial and non-financial 
items for which other IFRSs require or permit fair value measurements or disclosures about fair value measurements except in certain 
circumstances. IFRS 13 applies prospectively for annual periods beginning on or after 1 January 2013. Its disclosure requirements need 
not be applied to comparative information in the first year of application. The Group has however included as comparative information the 
IFRS 13 disclosures that were required previously by IFRS 7 ‘Financial Instruments: Disclosures’. The Group has applied IFRS 13 for the 
first time in the current year, see note 26. 
Notes to the Consolidated Financial Statements
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated) 52    OPG Power Ventures Plc Annual report and accounts 2014
Notes to the Consolidated Financial Statements continued
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated)
2. New and revised standards that are effective for annual periods beginning on or after 1 January 2013 continued
2.2. Standards, amendments and interpretations to existing standards that are not effective and have not been early adopted 
by the Group 
At the date of authorisation of these financial statements, certain new standards, amendments and interpretations to existing standards 
have been published but are not yet effective, and have not been adopted early by the Group. 
Management anticipates that all of the relevant pronouncements will be adopted in the Group’s accounting policies for the first period 
beginning after the effective date of the pronouncement. Information on new standards, amendments and interpretations that are 
expected to be relevant to the Group’s financial statements is provided below. Certain other new standards and interpretations have been 
issued but are not expected to have a material impact on the Group’s financial statements. 
Standards and interpretations adopted by the European Union as at 31 March 2014
Standard or Interpretation Effective for in reporting periods starting on or after
Offsetting Financial Assets and Financial Liabilities 1 January 2014
IFRS 9 Financial Instruments 1 January 2015
The management is yet to assess the impact of IFRS 9 on the Group’s consolidated financial statements. However management does not 
expect to implement IFRS 9 until all of its chapters have been published and it can comprehensively assess the impact of all changes.
The management does not expect the application of the other standards to have any material impact on its financial statements when 
those standards become effective. The Group does not intend to apply any of these pronouncements early.
3. Summary of significant accounting policies
3.1. Basis of preparation
The consolidated financial statements have been prepared on a historical cost basis, except for financial assets and liabilities at fair value 
through profit or loss and available-for-sale financial assets measured at fair value.
The financial statements have been prepared on going concern basis which assumes the Group will have sufficient funds to continue its 
operational existence for the foreseeable future covering at least 12 months. As the Group has forecast it will be able to meet its debt 
facility interest and repayment obligations, and that sufficient funds will be available to continue with the projects development, the 
assumption that these financial statements are prepared on a going concern basis is appropriate.
The consolidated financial statements are presented in accordance with IAS 1 Presentation of Financial Statements and have been 
presented in Great Britain Pound (£), which is the functional and presentation currency of the Company.
3.2. Basis of consolidation
The consolidated financial statements incorporate the financial information of OPG Power Ventures Plc and its subsidiaries for the year 
ended 31 March 2014.
A subsidiary is defined as an entity controlled by the Company. The parent controls a subsidiary if it is exposed, or has rights, to variable 
returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. 
Subsidiaries are fully consolidated from the date of acquisition, being the date on which control is acquired by the Group, and continue to 
be consolidated until the date that such control ceases. All subsidiaries have a reporting date of 31 March and use consistent accounting 
policies adopted by the Group.
All intra-group balances, income and expenses and any resulting unrealised gains arising from intra-group transactions are eliminated in 
full on consolidation. 
Non-controlling interest represents the portion of profit or loss and net assets that is not held by the Group and is presented separately in 
the consolidated statement of comprehensive income and within equity in the consolidated statement of financial position, separately 
from parent shareholders’ equity. Acquisitions of additional stake or dilution of stake from/to non-controlling interests/other venturer in the 
Group where there is no loss of control are accounted for as an equity transaction, whereby, the difference between the consideration 
paid or received and the book value of the share of the net assets is recognised in ‘other reserve’ within statement of changes in equity.  53    OPG Power Ventures Plc Annual report and accounts 2014
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3. Summary of significant accounting policies continued
3.3. List of subsidiaries 
Details of the Group’s subsidiaries which are consolidated into the Group’s consolidated financial statement are as follows: 
Subsidiaries
Immediate parent 
2014
Country of 
incorporation
% Voting right % Economic interest
2014 2013 2014 2013
Caromia Holdings limited (‘CHL ’) OPGPV Cyprus 100 100 100 100
Gita Power and Infrastructure Private Limited, (‘GPIPL ’) CHL India 100 100 100 100
OPG Power Generation Private Limited (‘OPGPG’) GPIPL India 82.66 71.76 99 99
OPGS Power Gujarat Private Limited (‘OPGG’)
1
GPIPL India 51 100 99 100
OPGS Industrial Infrastructure Developers Private Ltd (‘OPIID’) OPGG India 100 – 100 –
OPGS Infrastructure Private Limited (‘OPGIPL ’) OPGG India 100 – 100 –
1 It has been decided during the year to increase the Class A (Captive consumer) shares in OPGG to 49% (from 30% earlier proposed) for operational flexibility. This change 
has no impact on the Group’s economic interest in OPGG.
3.4. Foreign currency translation
The functional currency of the Company is the Great Britain Pound Sterling (£). The Cyprus entity is an extension of the parent and pass 
through investment entity. Accordingly the functional currency of the subsidiary in Cyprus is the Great Britain Pound Sterling. The 
functional currency of the Company’s subsidiaries operating in India, determined based on evaluation of the individual and collective 
economic factors is Indian Rupees (‘INR’). The presentation currency of the Group is the Great Britain Pound (£) as submitted to the AIM 
counter of the London Stock Exchange where the shares of the Company are listed.
At the reporting date the assets and liabilities of the Group are translated into the presentation currency which is Great Britain Pound 
Sterling (£) at the rate of exchange ruling at the statement of financial position date and the statement of comprehensive income is 
translated at the average exchange rate for the year. Exchange differences are charged/credited to other comprehensive income and 
recognised in the currency translation reserve in equity.
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and 
liabilities denominated in foreign currencies at the statement of financial position date are translated into functional currency at the foreign 
exchange rate ruling at that date. Aggregate gains and losses resulting from foreign currencies are included in finance income or costs 
within the profit or loss. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are 
translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies 
that are stated at fair value are translated to functional currency at foreign exchange rates ruling at the dates the fair value 
was determined.
Indian Rupee (‘INR’) exchange rates used to translate the INR financial information into the presentation currency of Great Britain  
Pound (£) are the closing rate as at 31 March 2014: 99.42 (2013: 82.56) and the average rate for the year ended 31 March 2014: 95.89 
(2013: 85.83).
3.5. Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits associated with the transaction will flow to the Group, 
and revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable in accordance 
with the relevant agreements, net of discounts, rebates and other applicable taxes and duties.
Sale of electricity
Revenue comprises revenue from sale of electricity. Revenue from the sale of electricity is recognised when earned on the basis of 
contractual arrangement with the customers and reflects the value of units supplied including an estimated value of units supplied to the 
customers between the date of their last meter reading and the reporting date.
Interest and dividend
Revenue from interest is recognised as interest accrues (using the effective interest rate method). Revenue from dividends is recognised 
when the right to receive the payment is established.
3.6. Operating expenses
Operating expenses are recognised in profit or loss upon utilisation of the service or as incurred. Expenditure for warranties is recognised 
when the Group incurs an obligation in that regard. 54    OPG Power Ventures Plc Annual report and accounts 2014
Notes to the Consolidated Financial Statements continued
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated)
3. Summary of significant accounting policies continued
3.7. Taxes
Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised in other comprehensive 
income or directly in equity. 
Current income tax assets and/or liabilities comprise those obligations to, or claims from, taxation authorities relating to the current or 
prior reporting periods, that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in 
the financial statements. 
Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the 
reporting period.
Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and 
liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on the initial recognition of an 
asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary 
differences associated with investments in subsidiaries is not provided if reversal of these temporary differences can be controlled by the 
Group and it is probable that reversal will not occur in the foreseeable future. 
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of 
realisation, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are always 
provided for in full. 
Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised against future taxable income. 
Deferred tax assets and liabilities are offset only when the Group has a right and the intention to set off current tax assets and liabilities 
from the same taxation authority. Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in 
profit or loss, except where they relate to items that are recognised in other comprehensive income or directly in equity, in which case the 
related deferred tax is also recognised in other comprehensive income or equity, respectively. 
3.8. Financial assets
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of any financial 
instrument and are measured initially at fair value adjusted by transactions costs, except for those carried at fair value through profit or 
loss which are measured initially at fair value. 
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial 
asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, 
cancelled or expires.
Financial assets are classified into the following categories upon initial recognition: 
•	 loans and receivables 
•	 available-for-sale financial assets. 
The category determines subsequent measurement and whether any resulting income and expense is recognised in profit or loss or in 
other comprehensive income. 
Loans and receivables:
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. 
After initial recognition these are measured at amortised cost using the effective interest method, less provision for impairment. 
Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other 
receivables fall into this category of financial instruments. 
Individually significant receivables are considered for impairment when they are past due or when other objective evidence is received 
that a specific counterparty will default. Receivables that are not considered to be individually impaired are reviewed for impairment in 
groups, which are determined by reference to the industry and region of a counterparty and other shared credit risk characteristics. The 
impairment loss estimate is then based on recent historical counterparty default rates for each identified group. 
Available-for-sale financial assets:
Available-for-sale financial assets are non-derivative financial assets that are either designated to this category or do not qualify for 
inclusion in any of the other categories of financial assets. The Group’s available-for-sale financial assets include Mutual funds and equity 
instruments. Available-for-sale financial assets are measured at fair value. Gains and losses are recognised in other comprehensive 
income and reported within the available-for-sale reserve within equity, except for impairment losses and foreign exchange differences on 
monetary assets, which are recognised in profit or loss. When the asset is disposed of or is determined to be impaired the cumulative 
gain or loss recognised in other comprehensive income is reclassified from the equity reserve to profit or loss and presented as a 
reclassification adjustment within other comprehensive income. 
Reversals of impairment losses are recognised in other comprehensive income, except for financial assets that are debt securities which 
are recognised in profit or loss only if the reversal can be objectively related to an event occurring after the impairment loss was recognised. 55    OPG Power Ventures Plc Annual report and accounts 2014
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3.9. Financial liabilities
The Group’s financial liabilities include borrowings and trade and other payables. Financial liabilities are measured subsequently at 
amortised cost using the effective interest method. 
All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are included within 
‘finance costs’ or ‘finance income’.
3.10. Fair value of financial instruments
The fair value of financial instruments that are actively traded in organised financial markets is determined by reference to quoted market 
prices at the close of business on the statement of financial position date. For financial instruments where there is no active market, fair 
value is determined using valuation techniques. Such techniques may include using recent arm’s length market transactions; reference to 
the current fair value of another instrument that is substantially the same; discounted cash flow analysis or other valuation models.
3.11. Property, plant and equipment
Property, plant and equipment are stated at cost, net of accumulated depreciation and/or impairment losses, if any. The cost includes 
expenditures that are directly attributable to property plant and equipment such as employee cost, borrowing costs for long-term 
construction projects etc, if recognition criteria are met. Likewise, when a major inspection is performed, its costs are recognised in the 
carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repairs and maintenance 
costs are recognised in the profit or loss as incurred.
Land is not depreciated. Depreciation on other assets is computed on a straight-line basis over the useful life of the asset based on 
management’s estimate as follows:
Nature of asset Useful life (years)
Buildings 40
Power stations 40
Other plant and equipment 3–10
Vehicles 5–11
Assets in the course of construction are stated at cost and not depreciated until commissioned.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use 
or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and 
the carrying amount of the asset) is included in the profit or loss in the year the asset is derecognised.
The assets residual values, useful lives and methods of depreciation of the assets are reviewed at each financial year end, and adjusted 
prospectively if appropriate.
3.12. Intangible assets
Acquired software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and install the specific software.
Subsequent measurement
All intangible assets, including software are accounted for using the cost model whereby capitalised costs are amortised on a straight-line 
basis over their estimated useful lives, as these assets are considered finite. Residual values and useful lives are reviewed at each 
reporting date. The useful life of software is estimated as four years.
3.13. Leases 
The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at inception date 
and whether fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to 
use the asset.
Group as a lessee
Contracts to lease assets are classified as finance leases if they transfer substantially all the risks and rewards of ownership of the asset 
to the Group. Leases where the Group does not acquire substantially all the risks and benefits of ownership of the asset are classified as 
operating leases. 
Operating lease payments are recognised as an expense in the profit or loss on a straight-line basis over the lease term. Lease of land is 
classified separately and is amortised over the period of the lease.
3. Summary of significant accounting policies continued 56    OPG Power Ventures Plc Annual report and accounts 2014
Notes to the Consolidated Financial Statements continued
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated)
3.14. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, that necessarily take a substantial 
period of time to get ready for their intended use or sale, are added to the cost of those assets. Interest income earned on the temporary 
investment of specific borrowing pending its expenditure on qualifying assets is deducted from the costs of these assets. 
Gains and losses on extinguishment of liability, including those arising from substantial modification from terms of loans are not treated as 
borrowing costs and are charged to profit or loss. 
All other borrowing costs including transaction costs are recognised in the profit or loss in the period in which they are incurred, the 
amount being determined using the effective interest rate method.
3.15. Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or 
when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable 
amount is the higher of an asset’s or cash-generating unit’s (‘CGU’) fair value less costs to sell and its value in use and is determined for 
an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Groups of 
assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written 
down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a 
pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In 
determining fair value less costs to sell, an appropriate valuation model is used. These calculations are corroborated by valuation 
multiples, quoted share prices for publicly traded subsidiaries or other available fair value indicators.
For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously 
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset’s or 
cash-generating unit’s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the 
assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. The reversal is limited so 
that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been 
determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the 
profit or loss.
3.16. Cash and cash equivalents
Cash and cash equivalents in the Statement of financial position comprise cash at banks and on hand and short-term deposits.
For the purpose of the consolidated cash flow statement, cash and cash equivalents consist of cash and short-term deposits. Restricted 
cash represents deposits which is subject to a fixed charge and held as security for specific borrowings and are not included in cash and 
cash equivalents. 
3.17. Inventories
Inventories are stated at the lower of cost and net realisable value. Costs incurred in bringing each product to its present location and 
condition is accounted based on weighted average price. Net realisable value is the estimated selling price in the ordinary course of 
business, less estimated selling expenses.
3.18. Earnings per share
The earnings considered in ascertaining the Group’s earnings per share (‘EPS’) comprise the net profit for the year attributable to ordinary 
equity holders of the parent. The number of shares used for computing the basic EPS is the weighted average number of shares 
outstanding during the year. 
3.19. Other provisions and contingent liabilities 
Provisions are recognised when present obligations as a result of a past event will probably lead to an outflow of economic resources 
from the Group and amounts can be estimated reliably. Timing or amount of the outflow may still be uncertain. A present obligation arises 
from the presence of a legal or constructive obligation that has resulted from past events. Restructuring provisions are recognised only if 
a detailed formal plan for the restructuring has been developed and implemented, or management has at least announced the plan’s 
main features to those affected by it. Provisions are not recognised for future operating losses. 
Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence 
available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of 
similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a 
whole. Provisions are discounted to their present values, where the time value of money is material. 
Any reimbursement that the Group can be virtually certain to collect from a third party with respect to the obligation is recognised as a 
separate asset. However, this asset may not exceed the amount of the related provision. All provisions are reviewed at each reporting 
date and adjusted to reflect the current best estimate. 
In those cases where the possible outflow of economic resources as a result of present obligations is considered improbable or remote, 
no liability is recognised, unless it was assumed in the course of a business combination. In a business combination, contingent liabilities 
are recognised on the acquisition date when there is a present obligation that arises from past events and the fair value can be measured 
reliably, even if the outflow of economic resources is not probable. They are subsequently measured at the higher amount of a 
comparable provision as described above and the amount recognised on the acquisition date, less any amortisation. 
3. Summary of significant accounting policies continued 57    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
3. Summary of significant accounting policies continued
3.20. Share-based payments
The Group operates equity-settled share-based remuneration plans for its employees. None of the Group’s plans feature any options for 
a cash settlement. 
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values. Where 
employees are rewarded using share-based payments, the fair values of employees’ services is determined indirectly by reference to the 
fair value of the equity instruments granted. This fair value is appraised at the grant date and excludes the impact of non-market vesting 
conditions (for example profitability and sales growth targets and performance conditions). 
All share-based remuneration is ultimately recognised as an expense in profit or loss with a corresponding credit to ‘Other Reserves’.
If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate 
of the number of share options expected to vest. Non-market vesting conditions are included in assumptions about the number of 
options that are expected to become exercisable. Estimates are subsequently revised if there is any indication that the number of share 
options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. 
No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated 
on vesting. 
Upon exercise of share options, the proceeds received net of any directly attributable transaction costs up to the nominal value of the 
shares issued are allocated to share capital with any excess being recorded as share premium. 
3.21. Employee benefits 
Gratuity 
In accordance with applicable Indian laws, the Group provides for gratuity, a defined benefit retirement plan (‘the Gratuity Plan’) covering 
eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or 
termination of employment, of an amount based on the respective employee’s salary and the tenure of employment.
Liabilities with regard to the gratuity plan are determined by actuarial valuation, performed by an independent actuary, at each Statement 
of financial position date using the projected unit credit method.
The Group recognises the net obligation of a defined benefit plan in its statement of financial position as an asset or liability, respectively 
in accordance with IAS 19, Employee benefits. The discount rate is based on the Government securities yield. Actuarial gains and losses 
arising from experience adjustments and changes in actuarial assumptions are charged or credited to profit or loss in the statement of 
comprehensive income in the period in which they arise. 
Employees Benefit Trust
Effective during the previous year, the Group has established an Employees Benefit Trust (hereinafter ‘the EBT’) for investments in the 
Company’s shares for employee benefit schemes. IOMA Fiduciary in the Isle of Man have been appointed as Trustees of the EBT with full 
discretion invested in the Trustee, independent of the Company, in the matter of share purchases. As at present, no investments have 
been made by the Trustee nor any funds advanced by the Company to the EBT. The Company is yet to formulate any employee benefit 
schemes or to make awards thereunder.
3.22. Business combinations
Business combinations arising from transfers of interests in entities that are under the control of the shareholder that controls the Group 
are accounted for as if the acquisition had occurred at the beginning of the earliest comparative period presented or, if later, at the date 
that common control was established using pooling of interest method. The assets and liabilities acquired are recognised at the carrying 
amounts recognised previously in the Group controlling shareholder’s consolidated financial statements. The components of equity of the 
acquired entities are added to the same components within Group equity. Any excess consideration paid is directly recognised in equity.
4. Significant accounting judgements, estimates and assumptions
The preparation of financial statements in conformity with IFRS requires management to make certain critical accounting estimates and 
assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of 
the financial statements and the reported amounts of revenues and expenses during the reporting period. 
The principal accounting policies adopted by the Group in the consolidated financial statements are as set out above. The application of a 
number of these policies requires the Group to use a variety of estimation techniques and apply judgement to best reflect the substance 
of underlying transactions.
The Group has determined that a number of its accounting policies can be considered significant, in terms of the management 
judgement that has been required to determine the various assumptions underpinning their application in the consolidated financial 
statements presented which, under different conditions, could lead to material differences in these statements. The actual results may 
differ from the judgements, estimates and assumptions made by the management and will seldom equal the estimated results. 58    OPG Power Ventures Plc Annual report and accounts 2014
Notes to the Consolidated Financial Statements continued
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated)
The following are significant management judgements in applying the accounting policies of the Group that have the most significant 
effect on the financial statements. 
– Deferred tax assets: 
The assessment of the probability of future taxable income in which deferred tax assets can be utilised is based on the Group’s latest 
approved budget forecast, which is adjusted for significant non-taxable income and expenses and specific limits to the use of any unused 
tax loss or credit. The tax rules in India in which the Group operates are also carefully taken into consideration. If a positive forecast of 
taxable income indicates the probable use of a deferred tax asset, especially when it can be utilised without a time limit, that deferred tax 
asset is usually recognised in full. The recognition of deferred tax assets that are subject to certain legal or economic limits or 
uncertainties is assessed individually by management based on the specific facts and circumstances (refer note 10).
– Application of lease accounting 
Significant judgement is required to apply lease accounting rules under IFRIC 4 Determining whether an arrangement contains a Lease 
and IAS 17 Leases. In assessing the applicability to arrangements entered into by the Group, management has exercised judgement to 
evaluate customer’s right to use the underlying assets, substance of the transaction including legally enforced arrangements and other 
significant terms and conditions of the arrangement to conclude whether the arrangements meet the criteria under IFRIC 4.
Estimates and uncertainties:
The key assumptions concerning the future and other key sources of estimation uncertainty at the Statement of financial position date, 
that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next financial year 
are discussed below:
•	 Recoverability of deferred tax assets: The recognition of deferred tax assets requires assessment of future taxable profit (see note 3.7).
•	 Estimation of fair value of financial assets and financial liabilities: While preparing the financial statements the Group makes estimates 
and assumptions that affect the reported amount of financial assets and financial liabilities. 
 – Available-for-sale financial assets: Management apply valuation techniques to determine the fair value of available-for-sale financial 
assets where active market quotes are not available. This requires management to develop estimates and assumptions based on 
market inputs, using observable data that market participants would use in pricing the asset. Where such data is not observable, 
management uses its best estimate. Estimated fair values of the asset may vary from the actual prices that would be achieved in an 
arm’s length transaction at the reporting date;
 – Other financial liabilities: Borrowings held by the Group are measured at amortised cost. Further, liabilities associated with financial 
guarantee contracts in the Company financial statements are initially measured at fair value and remeasured at each statement of 
financial position date. (see note 3.9 and note 26); and
 – Impairment tests: In assessing impairment, management estimates the recoverable amount of each asset or cash-generating units 
based on expected future cash flows and use an interest rate to discount them. Estimation uncertainty relates to assumptions about 
future operating results and the determination of a suitable discount rate;
•	 Useful life of depreciable assets: Management reviews its estimate of the useful lives of depreciable assets at each reporting date, 
based on the expected utility of the assets.
5. Segment information
The Group has adopted the ‘management approach’ in identifying the operating segments as outlined in IFRS 8 – Operating segments. 
Segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief 
operating decision maker evaluates the Group’s performance and allocates resources based on an analysis of various performance 
indicators at operating segment level. Accordingly, there is only a single operating segment ‘generation and sale of electricity’. The 
accounting policies used by the Group for segment reporting are the same as those used for consolidated financial statements. There are 
no geographical segments as all revenues arise from India. 
Revenue on account of sale of power to one party amounts to £94,016,799 (2013: £49,577,179).
6. Depreciation, costs of inventories and employee benefit expenses included in the consolidated statements of 
comprehensive income
a) Depreciation and costs of inventories included in the consolidated statements of comprehensive income
31 March 2014 31 March 2013
Included in cost of revenue:
Cost of fuel consumed 56,096,388 31,829,212
Depreciation 2,635,100 1,376,180
Other direct costs 3,423,554 1,417,871
Total 62,155,041 34,623,263
Depreciation included in general and administrative expenses amount to £263,885 (2013: £187,905).
4. Significant accounting judgements, estimates and assumptions continued 59    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
6. Depreciation, costs of inventories and employee benefit expenses included in the consolidated statements of 
comprehensive income continued
b) Employee benefit expenses forming part of general and administrative expenses are as follows:
31 March 2014 31 March 2013
Salaries and wages 2,126,803 1,704,807
Employee benefit costs 682,864 203,172
Employee stock option 974,222 974,222
Total 3,783,889 2,882,201
c) Auditor’s remuneration for audit services amounting to £40,000 (2013: £35,000) is included in general and administrative expenses.
d) Foreign exchange (loss)/gain included in the general and administrative expenses is as follows:
31 March 2014 31 March 2013
Foreign exchange (loss) (2,834,007) (960,459)
Total (2,834,007) (960,459)
7. Other income
Other income comprises of:
31 March 2014 31 March 2013
Sale of fly ash and coal 140,429 242,162
Others 120,309 473,514
Total 260,738 715,676
8. Finance costs
Finance costs comprises of:
31 March 2014 31 March 2013
Interest expenses on loans and borrowings 8,155,215 4,742,403
Impairment of available-for-sale financial assets (also refer note 13) 274,181 1,107,581
Other finance costs 1,362,514 289,015
Total 9,791,910 6,138,999
Interest expenses on loans and borrowings, consists of interest expenses on financial liability at amortised cost of £8,155,215 (2013: 
£4,742,403). 
9. Finance income
The finance income comprises of:
31 March 2014 31 March 2013
Interest income 
– Bank deposits 652,088 1,637,028
– Loans and receivables 5,513 14,043
Dividend income 30,980 180,790
Profit on disposal of financial instruments 296,575 252,245
Total 985,156 2,084,106
Finance income includes interest income earned by OPGPV on the investment of its funds. 60    OPG Power Ventures Plc Annual report and accounts 2014
Notes to the Consolidated Financial Statements continued
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated)
10. Tax expense 
Tax reconciliation
Reconciliation between tax expense and the product of accounting profit multiplied by India’s domestic tax rate for the years ended 
31 March 2014 and 2013 is as follows:
31 March 2014 31 March 2013
Accounting profit before taxes 17,949,261 10,535,251
Enacted tax rates 32.45% 32.45%
Tax on profit at enacted tax rate 5,824,535 3,418,689
Differences on account MAT rate (2,745,459) (1,570,510)
Items taxed at zero rate (780,037) (828,328)
Others 1,086,047 690,988
Actual tax expense 3,385,087 1,710,839
Consolidated statement of comprehensive income
31 March 2014 31 March 2013
Current tax 2,676,307 2,025,698
Deferred tax 708,780 (314,859)
Tax expense reported in the statement of comprehensive income 3,385,087 1,710,839
The Company is subject to Isle of Man corporate tax at the standard rate of zero percent. As such, the Company’s tax liability is zero. 
Additionally, Isle of Man does not levy tax on capital gains. However, considering that the Group’s operations are entirely based in India, 
the effective tax rate of the Group has been computed based on the current tax rates prevailing in India. Further, a substantial portion of 
the profits of the Group’s India operations are exempt from Indian income taxes being profits attributable to generation of power in India. 
Under the tax holiday the taxpayer can utilise an exemption from income taxes for a period of any 10 consecutive years out of a total of 15 
consecutive years from the date of commencement of the operations.
The Group is subject to the provisions of Minimum Alternate Tax (‘MAT’) under the Indian Income taxes for the year ended 31 March 2014 
and 2013. Accordingly, the Group calculated the tax liability for current taxes in India after considering MAT. 
The Group has carried forward credit in respect of MAT tax liability paid to the extent it is probable that future taxable profit will be 
available against which such tax credit can be utilised.
Deferred income tax for the Group at 31 March 2014 and 2013 relates to the following: 
31 March 2014 31 March 2013
Deferred income tax assets
Lease transactions and others 56,728 59,906
Provisions 699,442 775,936
756,170 835,842
Deferred income tax liabilities
Property, plant and equipment 2,251,032 1,813,272
Mark-to-market on available-for-sale financial assets 14,991 12,886
2,266,023 1,826,158
Deferred income tax liabilities, net 1,509,853 990,316
Movement in temporary differences during the year
Particulars
As at 
1 April 
2013
Recognised in 
income 
statement
Recognised 
in other 
comprehensive 
income
Translation 
adjustment
As at 
31 March 
2014
Property, plant and equipment and others (1,813,272) (774,708) – 336,948 (2,251,032)
Lease transactions 59,906 7,237 – (10,415) 56,728
Provisions 775,936 58,691 – (135,185) 508,138
Mark-to-market gain/(loss) on available-for-sale financial assets (12,886) – (2,105) – (14,991)
(990,316) (708,780) (2,105) 191,348 (1,509,853) 61    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
10. Tax expense continued
Particulars
As at
 1 April
 2012
Recognised in 
Income 
statement
Recognised 
in other 
comprehensive 
income
Translation 
adjustment
As at 
31 March 
2013
Property, plant and equipment and others (1,353,007) (437,889) – (22,376) (1,813,272)
Lease transactions 48,961 8,084 – 2,861 59,906
Provisions – 744,664 – 26,701 612,103
Mark-to-market gain/(loss) on available-for-sale financial assets (1,183) – (11,703) – (12,886)
(1,300,658) 322,044 (11,703) 7,186 (990,316)
In assessing the reliability of deferred income tax assets, management considers whether it is more likely than not that some portion 
or all of the deferred income tax assets will be realised. The ultimate realisation of deferred income tax assets is dependent upon the 
generation of future taxable income during the periods in which the temporary differences become deductible. The amount of the 
deferred income tax assets considered realisable, however, could be reduced in the near term if estimates of future taxable income 
during the carry forward period are reduced.
Shareholders resident outside the Isle of Man will not suffer any income tax in the Isle of Man on any income distributions to them. 
Further, dividends are not taxable in India in the hands of the recipient. However, the Group will be subject to a ‘dividend distribution tax’ 
currently at the rate of 15% (plus applicable surcharge and education cess) on the total amount distributed as dividend.
As at 31 March 2014 and 31 March 2013, there was no recognised deferred tax liability for taxes that would be payable on the unremitted 
earnings of certain of the Group’s subsidiaries, as the Group has determined that undistributed profits of its subsidiaries will not be 
distributed in the foreseeable future.
11. Intangible assets 
A. Gross block 
Amount in £
Particulars
Acquired software 
licenses Total 
As at 1 April 2013 – –
– Additions 548,893 548,893
– Exchange adjustments (19,478) (19,478)
As at 31 March 2014 529,415 529,415
B. Accumulated depreciation
Particulars
Acquired software 
licenses Total 
As at 1 April 2013 – –
– Depreciation charged during the year 56,769 56,769
– Exchange adjustments (2,014) (2,014)
As at 31 March 2014 54,756 54,756
C. Net block
As at 31 March 2014 474,660 474,660
As at 31 March 2013 – – 62    OPG Power Ventures Plc Annual report and accounts 2014
Notes to the Consolidated Financial Statements continued
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated)
12. Property, plant and equipment
The property, plant and equipment comprises of:
A. Gross block
Amount in £
Particulars
Land and 
buildings Power stations
Other plant and 
equipment Vehicles
Assets under 
construction Total 
As at 1 April 2013 10,001,465 80,357,096 456,895 642,786 94,314,130 185,772,372
– Additions 3,411,870 – 198,690 99,527 131,905,058 135,615,145
– Transfers on capitalisation 564,112 43,988,116 – – (44,552,228) –
– Exchange adjustments (1,836,696) (15,234,307) (67,520) (81,614) (19,093,953) (36,314,090)
As at 31 March 2014 12,140,751 109,110,905 588,065 660,699 162,573,007 285,073,427
As at 1 April 2012 8,080,397 36,053,588 284,481 292,570 49,954,827 94,665,863 
– Additions 1,901,331 151,352 142,283 381,043 88,199,257 90,775,266
– Transfers on capitalisation – 44,043,316 – – (44,043,316) –
– Exchange adjustments 19,737 108,840 30,131 (30,827) 203,362 331,243
As at 31 March 2013 10,001,465 80,357,096 456,895 642,786 94,314,130 185,772,372
B. Accumulated depreciation
Particulars
Land and 
buildings Power stations
Other plant and 
equipment Vehicles
Assets under 
construction Total
As at 1 April 2013 36,903 2,896,537 144,495 185,641 – 3,263,576
– Depreciation charged during the year 26,336 2,635,100 114,198 66,582 – 2,842,216
– Exchange adjustments (7,289) (582,616) (30,151) (33,592) – (653,648)
As at 31 March 2014 55,950 4,949,021 228,542 218,631 – 5,506,900
As at 1 April 2012 6,607 1,454,913 66,794 106,527 – 1,634,841 
– Depreciation charged during the year 29,176 1,376,180 81,790 76,939 – 1,564,085
– Exchange adjustments 1,120 65,444 (4,089) 2,175 – 64,650
As at 31 March 2013 36,903 2,896,537 144,495 185,641 – 3,263,576
C. Net block
Particulars
Land and 
buildings Power stations
Other plant and 
equipment Vehicles
Assets under 
construction Total
As at 31 March 2014 12,084,801 104,161,884 359,523 442,068 162,573,007 279,621,283
As at 31 March 2013 9,964,562 77,460,559 312,400 457,145 94,314,130 182,508,796
The net book value of land and buildings block comprises of:
31 March 2014 31 March 2013
Freehold land 11,848,425 9,634,419
Buildings 236,376 330,143
Total 12,084,801 9,964,562
Property, plant and equipment with a carrying amount of £278,819,692 (2013: £181,739,251) is subject to security restrictions (refer 
note 19).
An amount of £8,169,522 (previous year £4,753,396) pertaining to interest on borrowings made specifically for the qualifying assets was 
capitalised as the funds were deployed for the construction of qualifying assets. 63    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
13. Investments and other assets
A. Current
31 March 2014 31 March 2013
Available-for-sale financial assets 16,157,890 5,280,737
Capital advances 38,781,285 37,994,007
Loans and receivables
– Advance to suppliers 7,599,466 1,153,627
– Others 1,596,901 1,280,252
Total 64,135,542 45,708,623
B. Non-current 
Available-for-sale financial assets 274,181
Prepayments 622,876 787,771
Loans and receivables
– Lease deposits 79,594 86,153
– Other advances 26,891 12,482
Total 729,361 1,160,587
Available-for-sale investment 
Quoted short-term mutual fund units 
Available-for-sale investments comprises of the Groups investments in mutual fund units. The fair value of the mutual fund instruments are 
determined by reference to published data. These mutual fund investments are redeemable on demand. 
Investments in companies
The investments in OPG E and OPG RE, (fair value of retained non-controlling Investments) have been fair valued and the share of the Group 
has been determined and disclosed as available-for-sale classified as non-current. There is no change in the valuation technique to those 
adopted in the previous year. The fair value of OPGE and OPG RE is determined using discounted cash flow approach. Significant inputs 
into the model are based on management’s assumption of the expected cash flows up to 31 March 2024 and a discount rate of 17%.
The carrying amount of investments, its fair value and the resultant impact on the statement of comprehensive income is as follows: 
Particulars OPGE OPGRE Total
Investment value – Available-for-sale as on 31 March 2013 274,181 – 274,181
Fair value of available-for-sale as on 31 March 2014 – – –
Current year charge on remeasurement through statement of comprehensive income 274,181 – 274,181
Particulars OPGE OPGRE Total
Investment value – Available-for-sale as on 31 March 2012 1,381,762 – 1,381,762
Fair value of available-for-sale as on 31 March 2013 274,181 – 274,181
Charge on remeasurement through statement of comprehensive income 1,107,581 – 1,107,581
Loans and receivables (current)
Advances to Suppliers include the amounts paid as advance for supply of fuel. Capital advances comprise of payments made to 
contractors for construction of assets and advances paid for purchase of capital equipment. The management expects to realise these in 
the next one year. 64    OPG Power Ventures Plc Annual report and accounts 2014
Notes to the Consolidated Financial Statements continued
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated)
14. Trade and other receivables
31 March 2014 31 March 2013
Current
Trade receivables 20,594,850 33,953,528
Unbilled revenues 57,451 56,642
Other receivables  356,100 804,490
Total 21,008,401 34,814,660
Trade receivables are generally due within 14 days terms and are therefore short-term and the carrying values are considered a 
reasonable approximation of fair value. The entire sum of £21,008,401 (2013: £34,814,660) has been pledged as security for borrowings 
(refer note 18). As at 31 March 2014, trade receivables of £527,883 (2013: £978,893) were collectively impaired and provided for. Trade 
receivables that are neither past due nor impaired represents billings for the month of March.
The age analysis of the overdue trade receivables is as follows:
Total
Neither past due 
nor impaired
Past due but not impaired
Within 90 days 90 to 180 days Over 180 days
2014 20,594,850 8,606,114 11,948,883 39,853 –
2013 33,953,528 3,986,943 16,855,817 13,057,010 54,758
Since received from Tamil Nadu Generation and Distribution Corporation (‘TANGEDCO’) is £13.13m for the sale made up to January 2014 
and partly for sale during February and March 2014.
The movement in provision for trade receivables is as follows:
Opening 
balance
Provision for
 the year
Write off/
reversal
Closing 
balance
2014 978,893 93,316 (544,326) 527,883
2013 60,314 918,579 – 978,893
The creation of provision for impaired receivables has been included in general and administrative expenses in the statement of 
comprehensive income. Amounts charged to the allowance account are generally written off, when there is no expectation of recovering 
additional cash. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned 
above. The Group does not hold any collateral as security.
15. Inventories
31 March 2014 31 March 2013
Coal and fuel 11,750,681 5,275,114
Stores and spares 1,148,523 865,859
Total 12,899,204 6,140,973
The entire amount of £12,899,204 (2012: £6,140,973) has been pledged as security for borrowings (refer note 19).
16. Cash and cash equivalents
Cash and short-term deposits comprise of the following:
31 March 2014 31 March 2013
Cash at banks and on hand 6,283,204 17,760,840
Short-term deposits 353,373 5,145,936
Total 6,636,577 22,906,776
Short-term deposits are placed for varying periods, depending on the immediate cash requirements of the Group. They are recoverable 
on demand. 
Restricted cash represents deposits maturing between three to 12 months amounting to £7,456,090 (previous year £4,705,601) and 
maturing after 12 months amounting to £190,860 (previous year £394,782) which have been pledged by the Group in order to secure 
borrowing limits with banks (refer note 19).  65    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
17. 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 Group 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 Group.
The Company has an authorised and issued share capital of 351,504,795 equity shares (2013: 351,504,795) at par value of £0.000147 
(2013: £0.000147) per share amounting to £51,671 (2013: £51,671) in total.
The Company has issued share capital at par value of £51,671 (£0.000147 per share).
Reserves
Share premium represents the amount received by the Group over and above the par value of shares issued 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 are deducted from securities premium, net of any related income tax benefits. 
Foreign currency translation reserve is used to record the exchange differences arising from the translation of the financial statements of 
the foreign subsidiaries.
Other reserve represents the difference between the consideration paid and the adjustment to net assets on change of controlling 
interest, without change in control, other reserves also includes any costs related with share options granted and gain/losses on 
remeasurement of available-for-sale financial assets.
Retained earnings include all current and prior period results as disclosed in the statement of comprehensive income less 
dividend distribution. 
18. Share-based payments
The Board has granted share options to Directors and nominees of Directors which are limited to 10% of the Group’s share capital. Once 
granted, the share must be exercised within 10 years of the date of grant otherwise the options would lapse.
The vesting conditions are as follows:
•	 The 300 MW power plant of Kutch in the state of Gujarat must have been in commercial operation for three months.
•	 The closing share price being at least £1.00 for three consecutive business days.
The related expense has been amortised over the estimated vesting period of 4.96 years (expected completion of the Kutch plant) and an 
expense amounting to £974,222 (2013: £974,222) was recognised in the profit or loss with a corresponding credit to other reserves.
Movement in the number of share options outstanding and their related weighted average exercise price are as follows:
Particulars 31 March 2014 31 March 2013
At 1 April 22,524,234 22,524,234
Granted/Forfeited/Exercised/Expired – – 
At 31 March 22,524,234 22,524,234
The weighted average price fair value of options granted in 2010–11 was determined using the Black-Scholes valuation model was £0.28 
per option. The significant inputs into the model were weighted average share price of £0.66 (2011) at the grant date, exercise price of 
£0.60, volatility of 31.34%, dividend yield of nil, an expected option life of 4.96 years and annual risk free rate of 3%. The volatility 
measured at the standard deviation of continuously compounded share returns is based on daily share prices of the last three years.
19. Borrowings
The borrowings comprise of the following:
Interest rate  
(range %) Final Maturity 31 March 2014 31 March 2013
Term loans at amortised cost 12.67–15.17 March – 25 192,426,677 105,358,330
Cash credit and working capital arrangements – 5,946
Other borrowings March – 15 2,343,269 3,506,060
Total 194,769,946 108,870,336 66    OPG Power Ventures Plc Annual report and accounts 2014
Notes to the Consolidated Financial Statements continued
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated)
19. Borrowings continued
Total debt of £194,769,946 (2013: £108,870,336) is secured as follows:
•	 The term loans taken by the Group are fully secured by the property, plant, assets under construction and other current assets of 
subsidiaries which have availed such loans. All the loans are personally guaranteed by a Director.
•	 The cash credits and working capital arrangements availed by the Group are secured against hypothecation of current assets and in 
certain cases by deposits and margin money is provided as collateral. 
•	 Other borrowings are fully secured by hypothecation of current assets and in certain cases by margin money deposits and other fixed 
deposits of the respective entities availing the facility. 
Term loans contain certain covenants stipulated by the facility providers and primarily require the Group to maintain specified levels of 
certain financial metrics and operating results. The terms of the other borrowings arrangements also contain certain covenants primarily 
requiring the Group to maintain certain financial metrics. As of 31 March 2014, the Group has met all the relevant covenants. 
The fair value of borrowings at 31 March 2014 was £194,769,946 (2013: £108,870,336). The fair values have been calculated by 
discounting cash flows at prevailing interest rates.
The borrowings are reconciled to the statement of financial position as follows:
31 March 2014 31 March 2013
Current liabilities 
Amounts falling due within one year 8,191,455 4,972,199
Non-current liabilities
Amounts falling due after one year but not more than five years 94,459,543 84,835,475
Amounts falling due in more than five years 92,118,948 19,062,662
Total non-current 186,578,491 103,898,137
Total 194,769,946 108,870,336
20. Trade and other payables 
31 March 2014 31 March 2013
Current
Trade payables 17,176,528 12,582,732
Creditors for capital goods 7,475,692 24,547,203
Other payables 10,522,083 4,984,353
Total 35,174,303 42,114,288
Non-current 
Retention money 9,486,097 3,038,756
Other payables 15,511,429 331,002
Total 24,997,526 3,369,758
With the exception of retention money and certain other trade payables, all amounts are short-term. Trade payables are non-interest 
bearing and are normally settled on 45 days terms. Creditors for capital goods are non-interest bearing and are usually settled within a 
year. Other payables include accruals for gratuity and other accruals for expenses. 67    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
21. Related party transactions
Where control exists:
Name of the party Nature of relationship
Gita Investments Limited Ultimate parent
Caromia Holdings Limited Subsidiary
OPG Power Generation Private Limited Subsidiary
OPGS Power Gujarat Private Limited Subsidiary
Gita Power and Infrastructure Private Limited Subsidiary
OPGS Industrial Infrastructure Developers Private Ltd Subsidiary
OPGS Infrastructure Private Limited Subsidiary
Key management personnel:
Name of the party Nature of relationship
Arvind Gupta Chief Executive Officer
V Narayan Swami Chief Financial Officer
M C Gupta Chairman
Martin Gatto Director
Ravi Gupta Director
Patrick Michael Grasby Director
Related parties with whom the Group had transactions during the period
Name of the related party Nature of relationship
Sri Rukmani Rolling Mill Private Limited Entity in which key management personnel has control/significant influence
Kanishk Steel Industries Limited Entity in which key management personnel has control/significant influence
Gita Energy & Generation Private Limited Entity in which key management personnel has control/significant influence
Sonal Vyapar Limited Entity in which key management personnel has control/significant influence
OPG Energy Private Limited Entity in which key management personnel has control/significant influence
OPG Renewable Energy Private Limited Entity in which key management personnel has control/significant influence
Powerserve Support Limited Entity in which key management personnel has control/significant influence
Ravi Gupta Relative of key management personnel
Avantika Gupta Relative of key management personnel
Name of the party
31 March 2014 
Amount (£)
31 March 2013 
Amount (£)
Summary of transactions with related parties
Kanishk Steel Industries Limited
a) Sharing of power 32,662 –
b) Class A shares allotted 7,281 –
Chennai Ferrous Industries Ltd
a) Purchase of coal 300,475 –
Ravi Gupta
a) Remuneration 35,000 35,000
Avantika Gupta
a) Remuneration 52,143 –
Powerserve Support Limited
a) Consultancy fees 19,445 9,381
OPG Energy Private Limited
a) Reimbursement of expenses
OPG Renewable Energy Private Limited – 27,378
a) Purchase of coal 149,391 35,790
Gita Energy & Generation Private Limited
a) Reimbursement of expenses 46,006 68    OPG Power Ventures Plc Annual report and accounts 2014
Notes to the Consolidated Financial Statements continued
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated)
21. Related party transactions continued
Name of the party
31 March 2014 
Amount (£)
31 March 2013 
Amount (£)
Summary of balances with related parties
Gita Energy & Generation Private Limited
a) Trade payables 46,006 –
Kanishk Steel Industries Limited
a) Trade and other receivables – 288,039
Sri Rukmani Rolling Mill Private Limited
a) Trade and other receivables – 7,226
Sonal Vyapar Limited
a) Trade and other receivables – 37,208
OPG Energy Private Limited
a) Trade payables – 28,463
OPG Renewable Energy Private Limited
a) Trade and other receivables – 104,089
Outstanding balances at the year-end are unsecured. There have been no guarantees provided or received for any related party 
receivables or payables. For the year ended 31 March 2014, the Group has not recorded any impairment of receivables relating to 
amounts owed by related parties (2013: £nil). This assessment is undertaken each financial year through examining the financial position 
of the related party and the market in which the related party operates.
22. Earnings per share
Both the basic and diluted earnings per share have been calculated using the profit attributable to shareholders of the Parent Company 
as the numerator (no adjustments to profit were necessary for the year ended March 2014 or 2013).
The weighted average number of shares for the purposes of diluted earnings per share can be reconciled to the weighted average 
number of ordinary shares used in the calculation of basic earnings per share (for the Group and the Company) as follows:
Particulars 31 March 2014 31 March 2013
1
Weighted average number of shares used in basic earnings per share 351,504,795 351,504,795
Shares deemed to be issued for no consideration in respect of share-based payments 1,802,768 –
Weighted average number of shares used in diluted earnings per share 353,307,563 351,504,795
1 The potential equity shares are anti-dilutive in nature and hence have not been considered for diluted EPS computation.
23. Director’s remuneration 
Name of Directors 31 March 2014 31 March 2013
Arvind Gupta 258,108 279,613
V Narayan Swami 52,143 58,283
Martin Gatto 35,000 35,000
Mike Grasby 35,000 35,000
M C Gupta 35,000 35,000
Ravi Gupta 35,000 35,000
Total 450,251 477,896
The above remuneration is in the nature of short-term employee benefits. As the future liability for gratuity and compensated absences is 
provided on actuarial basis for the companies in the Group, the amount pertaining to the Directors is not individually ascertainable and 
therefore not included above.
24. Business combination within the Group without loss of control
As per the original structure of the Group, two Cypriot subsidiaries of OPGPV, namely GEPL & GHPL, held the investments in the equity 
of the Group’s Special Purpose Vehicles (‘SPV’) in India. During the year ended 31 March 2013, the management decided to interpose an 
Indian holding Company, GPIPL in the structure and warehouse the SPV investments in GPIPL. Accordingly, the shareholders of GEPL, 
GHPL and GPIPL had entered into a scheme of arrangement to effect the above restructuring of the Group. As part of the regulatory 
requirements in India, the Group had applied and obtained approval from the High Court of Madras on 28 October 2011 subject to 
fulfilment of certain conditions including approval of relevant regulatory authorities, allotment of shares etc. The scheme had been 
consummated with effect from 25 January 2013 upon issue of shares to the shareholders of GEPL and GHPL, namely CHL and the 
assets and liabilities of GEPL and GHPL have been taken over by GPIPL. Consequent to the scheme of arrangement, the Group also has 
gained 100% economic interest over GPIPL by virtue of an agreement entered into with the minority shareholders of GPIPL dated 1 April 
2012. The liquidation process of GEPL and GHPL is in progress as at year end and is the management expects the same to be complete 
by the end of 2014.  69    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
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24. Business combination within the Group without loss of control continued 
The above arrangement has been considered as a business combination involving companies under the Group and has been accounted 
at the date that common control was established using pooling of interest method. The assets and liabilities transferred are recognised 
at the carrying amounts recognised previously in the Group controlling shareholder’s consolidated financial statements. The components 
of equity of the acquired entities are added to the same components within Group equity. There was no excess consideration paid in 
this transaction.
25. Commitments and contingencies
Operating lease commitments
The Group leases land under operating leases. The leases typically run for a period of 15 to 30 years, with an option to renew the lease 
after that date. None of the leases includes contingent rentals.
Non-cancellable operating lease rentals are payable as follows:
31 March 2014 31 March 2013
Not later than one year 27,770 33,439
Later than one year and not later than five years 111,079 133,757
Later than five years 470,106 599,527
Total 608,955 766,723
During the year ended 31 March 2014, £28,791 (2013: £32,165) was recognised as an expense in the statement of comprehensive 
income in respect of operating leases.
Capital commitments
During the year ended 31 March 2014, the Group entered into a contract to purchase property, plant and equipment for £17,821,218 
(2013: £11,081,450). 
Guarantees and Letter of credit
The Group has provided bank guarantees and letter of credits (‘LC’) to customers and vendors in the normal course of business. The LC 
provided as at 31 March 2014: £66,289,044 (2013: £31,106,476) and bank guarantee as at 31 March 2014: £4,348,072 (2013: £3,350,437) 
are treated as contingent liabilities until such time it becomes probable that the Company will be required to make a payment under 
the guarantee. 
26. Financial risk management objectives and policies
The Group’s principal financial liabilities, comprises of loans and borrowings, trade and other payables, and other current liabilities. The 
main purpose of these financial liabilities is to raise finance for the Group’s operations. The Group has loans and receivables, trade and 
other receivables, and cash and short-term deposits that arise directly from its operations. The Group also hold investments designated 
at available-for-sale categories. 
The Group is exposed to market risk, credit risk and liquidity risk. 
The Group’s senior management oversees the management of these risks. The Group’s senior management advises on financial risks 
and the appropriate financial risk governance framework for the Group.
The Board of Directors reviews and agrees policies for managing each of these risks which are summarised below: 
Market risk
Market risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because of changes in market prices. 
Market prices comprise three types of risk: interest rate risk, currency risk and other price risk, such as equity risk. Financial instruments 
affected by market risk include loans and borrowings, deposits, available-for-sale investments.
The sensitivity analyses in the following sections relate to the position as at 31 March 2014 and 31 March 2013.
The following assumptions have been made in calculating the sensitivity analyses:
(i) The sensitivity of the statement of comprehensive income is the effect of the assumed changes in interest rates on the net interest 
income for one year, based on the average rate of borrowings held during the year ended 31 March 2014, all other variables being held 
constant. These changes are considered to be reasonably possible based on observation of current market conditions. 70    OPG Power Ventures Plc Annual report and accounts 2014
Notes to the Consolidated Financial Statements continued
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated)
Interest rate risk 
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market 
interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt 
obligations with average interest rates. 
At 31 March 2014 and 31 March 2013, the Group had no interest rate derivatives.
The calculations are based on a change in the average market interest rate for each period, and the financial instruments held at each 
reporting date that are sensitive to changes in interest rates. All other variables are held constant. If interest rates increase or decrease by 
100 basis points with all other variables being constant, the Group’s profit after tax for the year ended 31 March 2014 would decrease or 
increase by £627,770 (2013: £331,703).
Foreign currency risk 
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign 
exchange rate. The Group’s presentation currency is the Great Britain £. A majority of our assets are located in India where the Indian 
Rupee is the functional currency for our subsidiaries. Currency exposures also exist in the nature of capital expenditure and services 
denominated in currencies other than the Indian Rupee.
The Group’s exposure to foreign currency arises where a Group company holds monetary assets and liabilities denominated in a 
currency different to the functional currency of that entity: 
As at March 31 2014 As at March 31 2013
Currency
Financial 
assets
Financial 
liabilities
Financial 
assets
Financial 
liabilities
United States Dollar (USD) – 18,557,553 – 25,232,704
Set out below is the impact of a 10% change in the US Dollar on profit arising as a result of the revaluation of the Group’s foreign currency 
financial instruments:
As at March 31 2014 As at March 31 2013
Currency
Closing 
rate
Effect of 10% 
strengthening 
of GBP on net 
earnings
Closing 
rate
Effect of 10% 
strengthening 
of GBP on net 
earnings
United States Dollar (USD) 59.75 (1,115,318) 54.36 (1,661,369)
The impact on total equity is the same as the impact on net earnings as disclosed above.
Credit risk analysis
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial 
loss. The Group is exposed to credit risk from its operating activities (primarily for trade and other receivables) and from its financing 
activities, including short-term deposits with banks and financial institutions, and other financial assets.
The maximum exposure for credit risk at the reporting date is the carrying value of each class of financial assets amounting to 
£44,805,445 (2013: £63,276,354). 
The Group has exposure to credit risk from accounts receivable balances on sale of electricity. The operating entities of the Group has 
entered into short-term agreements with transmission companies incorporated by the Indian state government (‘TANGEDCO’) to sell the 
electricity generated Therefore the Group is committed, in the short-term, to sell power to these customers and the potential risk of 
default is considered low. For other customers, the Group ensures concentration of credit does not significantly impair the financial assets 
since the customers to whom the exposure of credit is taken are well established and reputed industries engaged in their respective field 
of business. The credit worthiness of customers to which the Group grants credit in the normal course of the business is monitored 
regularly. The credit risk for liquid funds is considered negligible, since the counterparties are reputable banks with high quality external 
credit ratings. 
The Group’s management believes that all the above financial assets, except as mentioned in note 13 and 14, are not impaired for each of 
the reporting dates under review and are of good credit quality. 
Liquidity risk analysis
The Group’s main source of liquidity is its operating businesses. The treasury department uses regular forecasts of operational cash flow, 
investment and trading collateral requirements to ensure that sufficient liquid cash balances are available to service ongoing business 
requirements. The Group manages its liquidity needs by carefully monitoring scheduled debt servicing payments for long-term financial 
liabilities as well as cash-outflows due in day-to-day business. Liquidity needs are monitored in various time bands, on a day-to-day and 
week-to-week basis, as well as on the basis of a rolling 90 day projection. Long-term liquidity needs for a 90 day and a 30 day lookout 
period are identified monthly. 
26. Financial risk management objectives and policies continued 71    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
26. Financial risk management objectives and policies continued
The Group maintains cash and marketable securities to meet its liquidity requirements for up to 60 day periods. Funding for long-term 
liquidity needs is additionally secured by an adequate amount of committed credit facilities and the ability to sell long-term financial assets. 
The following is an analysis of the Group contractual undiscounted cash flows payable under financial liabilities at 31 March 2014 and 31 
March 2013:
As at 31 March 2014
Current – within 
12 months
Non-current 
1–5 years
Later than
 5 years Total
Borrowings 26,168,359 193,853,235 14,248,051 234,269,645
Trade and other payables 35,174,303 24,997,526 – 60,171,829
Other current liabilities 227,143 – – 227,143
Total 61,569,805 218,850,761 14,248,051 294,668,617
As at 31 March 2013
Current – within 
12 months
Non-current 
1–5 years
Later than
 5 years Total
Borrowings 17,849,474 128,713,272 14,630,134 161,192,880 
Trade and other payables 42,114,288 3,369,758 – 45,484,046
Other current liabilities 278,989 – – 278,989
Total 60,242,751 132,083,030 14,630,134 206,955,915
Capital management
Capital includes equity attributable to the equity holders of the parent and debt less cash and cash equivalents.
The Group’s capital management objectives include, among others:
•	 Ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder 
value;
•	 Ensure Group’s ability to meet both its long-term and short-term capital needs as a going concern;
•	 To provide an adequate return to shareholders by pricing products and services commensurately with the level of risk. 
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust 
the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. 
No changes were made in the objectives, policies or processes during the years end 31 March 2014 and 2013.
The Group maintains a mixture of cash and cash equivalents, long-term debt and short-term committed facilities that are designed to 
ensure the Group has sufficient available funds for business requirements. There are no imposed capital requirements on Group or 
entities, whether statutory or otherwise. 
The Capital for the reporting periods under review is summarised as follows:
31 March 2014 31 March 2013
Total equity 136,628,267 142,738,538
Less: Cash and cash equivalents (6,636,577) (22,906,776)
Capital 129,991,690 119,831,762
Total equity 136,628,267 142,738,538
Add: borrowings (including buyer’s credit) 194,769,946 108,870,336
Overall financing 331,398,213 251,608,874
Capital to overall financing ratio 0.39 0.48
The disbursements of term loans received during the year have resulted in a decrease in capital to overall financing ratio. 72    OPG Power Ventures Plc Annual report and accounts 2014
Notes to the Consolidated Financial Statements continued
For the year ended 31 March 2014
(All amounts in £, unless otherwise stated)
27. Summary of financial assets and liabilities by category and their fair values
Set out below is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments that are carried in the 
financial statements:
Carrying amount Fair value
31 March 2014 31 March 2013 31 March 2014 31 March 2013
Financial assets
Loans and receivables
Cash and cash equivalents
1
6,636,577 22,906,776 6,636,577 22,906,776
Restricted cash
1
7,646,950 5,100,383 7,646,950 5,100,383
Current trade receivables
1
21,008,401 34,814,660 21,008,401 34,814,660
Available-for-sale instruments
3
16,157,890 5,554,918 16,157,890 5,554,918
51,449,818 68,376,737 51,449,818 68,376,737
Financial liabilities
Term loans 192,426,677 105,358,330 192,426,677 105,358,330
LC bill discounting and buyers’ credit facility
1
2,343,269 3,506,060 2,343,269 3,506,060
Current trade and other payables
1
35,174,303 42,114,288 35,174,303 42,114,288
Non-current trade and other payables
2
24,997,526 3,369,758 24,997,526 3,369,758
254,941,775 154,348,436 254,941,775 154,348,436
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current 
transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to 
estimate the fair values. 
1 Cash and short-term deposits, trade receivables, trade payables, and other borrowings like short-term loans, current liabilities approximate their carrying amounts largely due 
to the short-term maturities of these instruments. 
2 The fair value of loans from banks and other financial indebtedness, obligations under finance leases, financial liabilities at fair value through profit or loss as well as other 
non-current financial liabilities is estimated by discounting future cash flows using rates currently available for debt or similar terms and remaining maturities.
3 Fair value of available-for-sale instruments held for trading purposes are derived from quoted market prices in active markets. Fair value of available-for-sale unquoted equity 
instruments are derived from valuation performed at the year end. 
Fair value measurements recognised in the statement of financial position 
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped 
into Levels 1 to 3 based on the degree to which the fair value is observable.
•	 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
•	 Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for 
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
•	 Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not 
based on observable market data (unobservable inputs).
Level 1 Level 2 Level 3 Total
Available-for-sale financial assets
Unquoted securities – – – –
Quoted securities 16,157,890 – – 16,157,890
Total 16,157,890 – – 16,157,890
There were no transfers between Level 1 and 2 in the period.
The Group’s finance team performs valuations of financial items for financial reporting purposes, including Level 3 fair values. Valuation 
techniques are selected based on the characteristics of each instrument, with the overall objective of maximising the use of market-based 
information. The finance team reports directly to the chief financial officer (‘CFO’).
Valuation processes and fair value changes are discussed by the Board of Directors at least every year, in line with the Group’s 
reporting dates.
The fair value of contingent consideration related to the Level 3 investments is estimated using a present value technique. The £nil (2013: 
£274,181) fair value is estimated by discounting the estimated future cash outflows, adjusting for risk at 17%.  73    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
http://www.opgpower.com
27. Summary of financial assets and liabilities by category and their fair values continued
The valuation techniques used for instruments categorised in Levels 3 are described below:
31 March 2014 31 March 2013
Opening balance 274,181 1,381,762
Losses through profit or loss 274,181 1,107,581
Balance – 274,181
Total amount included in profit or loss for unrealised losses on Level 3 instruments under finance costs 274,181 1,107,581
28. Post-reporting date events
No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorisation.
Approved by the Board of Directors on 20 May 2014 and signed on its behalf by:
Arvind Gupta   V Narayan Swami
Chief Executive Officer  Chief Financial Officer 74    OPG Power Ventures Plc Annual report and accounts 2014
Nominated Adviser and Broker
Cenkos Securities Plc
6-7-8 Tokenhouse Yard
London
EC2R 7AS
Financial PR
Tavistock Communications
131 Finsbury Pavement
London
EC2A 7AS
Administrators and Company Secretary
IOMA Fund and Investment Management Limited
IOMA House
Hope Street
Douglas
Isle of Man
IM1 1AP
Auditors
Grant Thornton
Third Floor
Exchange House
54/62 Athol Street
Douglas
Isle of Man
IM1 1JD
Legal Advisers
Dougherty Quinn
The Chambers
5 Mount Pleasant
Douglas
Isle of Man
IM1 2PU
Registrars
Capita Registrars (Isle of Man) Limited
3rd Floor
Exchange House
54-58 Athol Street
Douglas
Isle of Man
IM1 1JD
Corporate Directory 75    OPG Power Ventures Plc Annual report and accounts 2014
Strategic report Directors’ report Financial statements
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Definitions and Glossary
Act: Isle of Man Companies Act 2006
AGM: Annual General Meeting
Board: Board of Directors of OPG Power Ventures Plc
BHEL: Bharat Heavy Electricals Limited
BOP: Balance of Plant
bps: Basis points
CAGR: Compound Average Growth Rate
CEA: Central Electricity Authority
CIL: Coal India Limited and its subsidiaries
Company or OPG or parent: OPG Power Ventures Plc
EBITDA: Earnings before interest, tax, depreciation and amortisation
Electricity Act: Indian Electricity Act 2003 as amended
EPC: Engineering, Procurement and Construction
EPS: Earnings per share
FY: Financial Year commencing from 1 April to 31 March
GCP: Group Captive Plant
GDP: Gross Domestic Product
Government GOI: Government of India
Great Britain Pound Sterling or £/pence: Pounds or sterling/pence, the lawful currency of the UK
Group Captive: Group Captive Power plant as defined under Electricity Act 2003, India
Group or OPG: the Company and its subsidiaries
GW: Giga Watt is 1,000 Mega Watt
IAS: International Accounting Standards
IFRS: International Financial Reporting Standards
Indian Companies Act: the Companies Act, 1956 and amendments thereto
LOI: Letter of Intent
kWh: Kilowatt hour is one unit of electricity
LSE: London Stock Exchange plc
MoU: Memorandum of Understanding
MW: Mega Watt is 1,000 Kilo Watt
MWh: Mega Watt hour
O&M: Operating and Management
PLF: Plant Load Factor
PPA: Power Purchase Agreement
PSA: Power Supply agreement
ROE: Return on Equity
Rupees/INR or Rs: Indian Rupee, the lawful currency of India
SEB: State Electricity Board
SPV: Special Purpose Vehicle 
State: State of India
TANGEDGO: Tamil Nadu Generation and Distribution Corporation Limited
The Code: the UK Corporate Governance code, issued by the Financial Reporting Council
UK/United Kingdom: United Kingdom of Great Britain and Northern Ireland
US$/USD or $: US Dollars, the lawful currency of the US 76    OPG Power Ventures Plc Annual report and accounts 2014
Notes  Isle of Man: 
OPG Power Ventures Plc
IOMA House, Hope Street
Douglas, Isle of Man
IM1 1AP
T : +44 (0) 1624 681200
www.opgpower.com
OPG Power Ventures Plc Annual report and accounts 2014