opg power ventures plc annual report and accounts 2012
delivery and growth
opg power ventures plc
annual report and accounts 2012
wwwopgpowercom
india 
opg power ventures plc
no 6 sardar patel road
guindy
chennai – 600 032
india
t 91 44 4291 1234 228 
isle of man 
opg power ventures plc
ioma house hope street
douglas isle of man
im1 1ap
t 44 0 1624 681200 01 highlights
02 our operations and projects
04 market overview
06 business model
08 key performance indicators
10 chairman’s statement
36 corporate governance 
40 directors’ remuneration report
44  dir ectors’ report
46  statement of directors’ responsibilities in respect of the accounts
12 chief executive’s statement
16 maximising opportunity
18 continuous supply
20 strategic locations
22 operational review
24 principal risks
26 financial review
30 responsible growth
34 board of directors
47  independent auditors’ report to the members of opg power ventures plc
48  consolidated statement of comprehensive income
49  consolidated statement of financial position
50  consolidated statement of changes in equity
52  consolidated statement of cash flows
53  notes to the consolidated financial statements
78 corporate directory
79 definitions and glossary
overview corporate governance
business review financial statements
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 aimopg 01
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
2012
4525
2011
3315
2010
1152
revenue £m 
2012
1705
2011
2129
2010
032
preexceptional earnings 
per share pence 
2012
1257
2011
1554
2010
695
ebitda£m
average tariff realisation rskwh 
2012
493
2011 2010
555
495
highlights 2012
  77 mw chennai i operated at a plant load factor of 92 
  77 mw chennai ii construction complete and trials 
ongoing revenue generation expected by september 2012
  accelerated construction of new 80 mw chennai iv 
expected commissioning q2 2013
  160 mw chennai iii construction commenced expected 
commissioning q2 2014
  300 mw gujarat facility based on aircooled condenser 
with h2 2014 commissioning 
  no coal shortages experienced by opg
  group revenue up by 37 to £4525m fy11 £3315m 
  ebitda at £1257m fy11 £1554m
  exceptional change on deconsolidation of legacy plants £482m 
  earnings per share preexceptional 1705 pence 
  cash and cash equivalents of £3927m including  
availableforsale investments amounting to £139m
  longterm borrowings of £5605m
operational
financial 02
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
our operations and projects 
77 mw
200
0
400
600
800
1000
2014 2013 2012 2011 2010 2009
existing capacity
addition
calendar year
projected capacity growth proﬁle mw 
current 
113 mw current operating capacity
36 mw
77 mw chennai i
chennai i a thermal coal plant our flagship asset is 
located at gummidipoondi about 55 kilometers from 
chennai the site is well located to serve industrial 
customers and is close to the ports of ennore and 
chennai the plant is 99 owned by the group and 
has domestic coal linkage from coal india limited 
cil against which it has been receiving 50 of its 
requirements as committed by cil and the balance 
requirement is being imported
the plant achieved an average plf of 92 in 201112 
and plant availability of 95 from january 2012 the 
om is managed inhouse previously outsourced and 
has achieved better performance in all key areas the 
plant has established hr practices including capability 
development initiatives and employee involvement in 
knowledge sharing and training programmes setting a 
standard for the group 
254 mw mayavaram
this natural gas based plant is near mayavaram in 
tamil nadu and from 1 december 2011 is held as an 
investment gas is supplied from the adjacent cauvery 
basin fields under a longterm supply agreement with 
gas authority of india ltd the success of this pilot plant 
has validated the effectiveness of the group captive 
power plant model the plant supplies power to industrial 
customers and part of the output of this plant is being sold 
in shortterm markets the plant is 44 owned by 
the group
10 mw waste heat
the 10 mw waste heat recovery plant is located at 
gummidipoondi about 55 kilometers from chennai 
from 1 december 2011 it is held as an investment the 
plant uses waste heat from the contiguous sponge iron 
facility of an associate kanishk steel and a blend of coal 
and dolochar which is a process residue in sponge iron 
production with residual calorific value owned 33 by 
the group the plant sells part of its output in short
term markets 03
opg power ventures plc
annual report and accounts 2012
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2015
development 
77 mw chennai ii
chennai ii plant is a brownfield expansion project and a 
replica of chennai i construction of the plant is complete 
the trials and commissioning phase commenced from 
june 2012 similar to chennai i the plant has domestic 
coal linkage from cil against which it is expected to 
receive 50 of its requirements as committed by cil  
the balance requirement is expected to be imported 
owned 99 by the group commercial operation of this 
plant is expected to commence from september 2012 
160 mw chennai iii
originally configured as 2 x 80 mw unit the plant has 
now been reconfigured to a single 160 mw unit which  
is expected to provide 10 fuel consumption savings  
and a lower turbineboiler heat rate in addition the 
reconfiguration allowed adequate space for another 
80 mw plant the plant located on the same site as 
chennai i and ii has environmental approvals debt and 
equity funding in place equipment orders are under way 
and the company has issued a letter of intent for boiler 
turbine and generator balance of plant bop deliveries 
are under way and construction has commenced  
the project owned 99 by the group is expected to 
commission in 2014 
80 mw chennai iv
the project is an additional 80 mw brownfield expansion 
at the chennai site equity funding for the project is from 
internal accruals and debt is under finalisation 
equipment delivery has commenced with c 55 of 
materials received and construction work at the site is 
under way 80 of the civil work power house building 
and the chimney are complete boiler and coal handling 
plant erection are in progress approximately 65 of coal 
supply is expected to be through imported coal and for 
domestic supply coal linkage has been established with 
cil commissioning is expected in q2 2013
629 mw under development
317 mw 312 mw
300 mw gujarat
for these 2 x 150 mw modular plants land debt and 
equity are in place environmental clearances have been 
received boiler component delivery has commenced 
and epc for bop has been awarded an aircooled 
cooling process has been adopted as opposed to water 
cooling construction activity has commenced at site 
boiler and chimney foundations are complete and 50  
of the power house building has been completed  
the project has 70 domestic coal linkage from cil 
commercial operation is expected to commence in 
h2 2014
12 mw bellary
located on a 120 acre brownfield site in the industrial 
heartland of karnataka state this project is expected to 
complete in 2014 and has the potential to develop into a 
350 mw plant in the future 
mou with gujarat state government 
mou signed with gujarat state to develop 5400 mw of 
generating capacity by 2018 with 4000 mw thermal 
coal and 1400 mw gas plants the government of 
gujarat is to facilitate approvals initial progress relating to 
fuel transhipment facilities is being made
group captive
  bilateral arrangements 
with consumers
tradersutilities
  offering reliable 
consistent power 
supply even during 
peak periods
  attractive prices 
relative to alternative 
tariffs
merchant 
  sales with traders 
directly
  flexibility and risks  
of spot pricing
  returns dependent  
on available pricing
  limited to one day 
future trading
routes to market  04
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
market overview
opg’s growth prospects are firmly underpinned by the economic 
fundamentals for power demand in india the indian power industry in 
201 1–12 experienced pressures on several fronts some of which now 
seem to be easing nonetheless with a persistent shortfall in new 
capacity additions exacerbated power deficits ranging from 9–13 
and demand forecasts exceeding 300 gw by 201 7  we believe the 
opportunity for supply of reliable power will prevail 
macro situation in india showing signs of recovery
with the government showing signs of favourable 
intervention fundamental changes have been stimulated 
redefining a steady growth path to harness the 
industry’s potential
  indian gdp registered an increase of 65 in fy12 
and similar growth is expected in the current year
  total 55 gw capacity installed during 11th five year 
plan 2007–2012 and target of c 90 gw by 2017
  demand for power expected to grow at approximately 
10 per annum until 2020
  after a marked increase in fy11 global thermal coal 
prices softened by over 15 during the year
  following an escalation of 375 bps over 13 
consecutive rises in interest rates to combat rising 
inflation the reserve bank of india reduced interest 
rates by 50 bps 
  amended rules on external commercial borrowings 
may provide an improved opportunity
tariff reforms offer respite 
  poor financial health of the state electricity boards 
‘seb’ principally on account of low tariffs for years 
leading to regulator intervention
  in fy12 16 sebs increased average tariffs  
up to 35
  tamil nadu announced a notable hike of over 35  
in power tariffs in fy13 
  during the year the central electricity regulatory 
commission indicated an upward movement in 
merchant power tariff 
  fuel price adjustment mechanism being introduced
domestic coal pressure 
  delays in development of new mines on account of 
environmental approvals may impact supply to new 
power plants and projects relying on captive coal 
blocks
  new domestic coal capacity being made available  
by expediting new mine buildout
  coal india asked to increase fuel supply to 80 of 
linkage commitments in case of independent power 
producers as against 50 currently
  increased reliance on imported coal leading to higher 
prices and impact on profitability
  thermal coal exempted from 5 import duty to  
ease supply pressures
  south africa australia and newer destinations like 
mozambique and columbia being considered 
besides indonesia – the key source for india’s present 
coal imports
business opportunity
  opg is one of the pioneers of the group captive 
model supplying to a broad base of industrial and 
commercial customers
  the model provides flexibility to sell power either to 
group captive or merchant consumers 
  improvement in profitability of sebs steered  
by tariff hikes expected to improve group captive 
and merchant power demand and tariffs
  growing opportunity in group captive and 
merchant power sectors as industrial and 
commercial consumers face power cuts and 
industries being subject to power holidays 05
opg power ventures plc
annual report and accounts 2012
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50
40
30
20
10
0
source cea ministry of power target            achieved
capacity growth proﬁle mw ’000 
viiith plan ixth plan xth plan fy08 fy09 fy10 fy11 fy12
900
800
700
600
500
400
300
100
200
0
 provisional ﬁgures source cea ministry of power
coal requirement mt            coal availability mt 
coal requirement  domestic availability for power 
sector million tonnes 
end of 8th plan end of 9th plan end of 10th plan end of 11th plan end of 12th plan 
210
215
263
265
359
336
455
402
842
550
450
360
270
90
180
0
source ministry of coal crisil analysis domestic coal           imported coal 
domestic and imported coal usage for power 
generation million tonnes 
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
140
120
100
40
60
80
20
0
source cea ministry of power
fy05 fy04 fy03 fy06 fy07 fy08 fy09 fy10 fy11 fy12
–122
demand         met              deﬁct
peak deﬁcit mw ’000 
–112 –117 –123
–138
–166
–119
–133
–98
–106
7
6
5
2
3
4
1
0
source tamil nadu generation and distribution corporation
fy08 fy07 fy09 fy10 fy12 fy11 fy12 fy13
–045
average cost of supply         average rate of realisation             loss per unit
tamil nadu average cost of supply  average rate of 
realisation rskwh 
–081
–173
–198
–212
–239
–069
 
■ ht iii – commercial establishments    
■ ht iib – private educational 
    institutions etc
■ ht ia – industrial establishments        
■ ht ib – railway traction
■ ht iia – government 
    institutions
2
741
709
638
636
558
tamil nadu ht categorywise billing rate
1
 from 
april 2012 rskwh 
 
1 excluding fuel price surcharge
2 includes government and goverment aided institutions
source tamil nadu generation and distribution corporation
dashboard
annual capacity addition has been much less than the 
planned targets for the sector resulting in power deficits
over 32 thermal power stations remained critical with 
coal stocks for less than seven days on the last day of 
march 2012
tamil nadu announced a notable hike of over 35 in 
power tariffs in fy13
over the past decade power sector usage of domestic 
coal grew by 6 pa in volume compared to 24 pa 
for imports
power deficit continues to range between 9 and 13 
while at the same time increasing in absolute terms 06
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
demand superior 
returns
competitive pricing
  
coal f exibility
proximity to ports
responsible growth
team
£
         brownf eld and modular expansion
continuous 
uninterrupted  
power supply
group captive  
model
the company aims to build shareholder value by being 
the first choice provider of reliable and uninterrupted 
power at competitive rates to its customers our strategy 
is to maximise the performance of existing generation 
assets and to continually derisk our project portfolio  
business model 07
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
competitive pricing
  
coal f exibility
proximity to ports
competitive pricing 
  power is sold to industrial and commercial customers at an attractive price versus 
state utility tariff
brownfield and 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 indonesia and can be burnt singly or in any mix of the 
two coal with high moisture tends to be cheaper than that with less moisture
proximity to ports
  our principal plants and projects are located close to ports which allows us to obtain 
the domestic or imported coal with minimum land logistics
our business model is 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 shortterm 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 to its customers
our business reflects our core values and us striving for excellence in management
£
responsible growth
  seek to identify and maximise any brownfield development opportunities
  evaluate and work with longterm top tier financing technical and consulting partners
  ensure all environmental norms are met or exceeded
  take cognisance of the needs of local communities
team
  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
superior returns 
  secure best available tariff through flexibility of supplying power under the group captive 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 08
opg power ventures plc
annual report and accounts 2012
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financial statements
key performance indicators
2012
1705
2011
2129
2010
032
preexceptional earnings per share pence
2012
1257
2011
1554
2010
695
ebitda £m 
2012
493
2011
495
2010
555
average tariff realisation rskwh 
the company aims to build shareholder value by being 
the first choice provider of reliable and uninterrupted power 
at competitive rates to its customers our strategy is to 
maximise the performance of existing generation assets 
and to continually derisk our project portfolio
this is the average price realised per unit  
of power sold revenue for the company  
is calculated by multiplying the number of  
units sold by the average price realised  
the average tariff achieved for fy12 was  
rs 493kwh amongst the highest in  
the sector
earnings before interest taxes depreciation 
and amortisation is a factor of volumes 
prices and cost of production this measure 
is calculated by adjusting nonoperational 
and exceptional items depreciation  
and net finance cost it is a measure of the 
company’s operating profitability ebitda  
for fy12 was £125m
this represents net profit after tax 
attributable to equity shareholders eps 
growth also demonstrates the management 
of our capital structure in fy12 earnings  
per share was 1705 pence  09
opg power ventures plc
annual report and accounts 2012
overview
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financial statements
2012
92
2011
75
plant load factor – chennai i 
2012
19
2011
–24
2010
10
gearing 
2012
325
2011
310
chenai i cost of generation – rskwh 
excludes electricity tax
gearing is a measure of net debt to 
shareholders equity plus net debt  
the group has net debt of £3159m  
2011 net cash £2964m and gearing  
of 19 2011 negative gearing of 24  
as development of projects proceeds  
the gearing turns positive
the cost of fuel is the primary cost input  
in power plants 77 mw chennai i cost  
per kwh increased marginally to rs 325  
fy11 rs 310 due to an increase in inr coal 
costs 
plant load factor measures the output of a 
power plant compared to the maximum 
output it could produce a higher load factor 
represents a more efficient plant and means 
fixed costs are spread over more kwh of 
output resulting in a lower price per unit of 
electricity operationally all plants performed 
well with average plf of the 77 mw chennai 
i plant at 92 10
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
“ the emphasis on accelerated development and delivery 
continues both at chennai and gujarat with this largely 
brownfield expansion portfolio being increasingly derisked 
in the light of what we see as structural and beneficial 
changes taking place with regard to power sector pricing in 
the country we are confident that the group’s differentiated 
and profitable business model will increasingly contribute to 
build superior shareholder value”
chairman’s statement
building on our track record
we benefited during the year from a strong full year contribution from 
the chennai i 77 mw plant as we forged ahead with our projects 
under construction
view of chennai i right and chennai ii left 11
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
i am pleased to report that in one of the most difficult 
trading environments the indian power sector has 
witnessed since private sector participation began nearly 
20 years ago the company has made considerable 
progress in advancing its projects and operations
we achieved revenue of £453m compared with £331m 
in 2010–11 whilst preexceptional earnings per share was 
1705 pence our business model continues to achieve 
average tariffs ahead of our competition this has 
delivered margins that are amongst the highest amongst 
independent indian electricity generators
there has been much talk of coal availability and the 
impact that a shortage could have on the operation and 
development of large new plants our plants are smaller 
in scale and are designed to be flexible and profitable 
under a variety of operating conditions and using various 
quality fuels coal availability was not a problem for opg 
as linkage commitments were met and other quantities 
were imported at comparable cost we expect this to 
continue to be a distinguishing feature of our business in 
the longterm
all our projects have progressed during the year 
specifically we accelerated chennai ii which is to be 
commissioned shortly and announced the addition of 
another 80 mw unit chennai iv which is also currently 
ahead of schedule our ability to fund internally the  
equity of this latest project reflects our focus on returns 
and cash generation in due course we shall have 
approximately 400 mw of capacity at the chennai site 
the year also saw progress at the 300 mw gujarat  
project although the project has faced some local 
objections i referred in my report last year to the 
constant testing of approval processes in a democratic 
country – environmental clearances for the gujarat 
project were confirmed by the national green tribunal 
but nevertheless the company has elected to go the 
extra mile by adopting aircooled condensers we believe 
this eliminates the basis for any of the claims that have 
been made against the project on environmental 
considerations
opg hopes to benefit from shortage in supply of reliable 
power in india the 11th five year plan has now ended 
and around two thirds of the anticipated capacity during 
that period was actually delivered the demand outlook 
for power in india has its foundation in the government’s 
desired economic growth for the country of 
approximately 10 pa the year witnessed high interest 
rates and a weak currency against the us dollar leading 
to bottlenecks in infrastructure financing and 
development particularly for large projects the sort that 
an emerging country such as india acutely needs to 
support anything close to its targeted growth level 
whilst your company has maintained its hallmark fuel 
flexibility it is encouraging to see the indian government 
responding to the country’s shortage of domestic  
coal supplies our hope is that this focus will persist 
furthermore there has been a centralised push to 
address the ailing health of some of the state electricity 
boards as part of reform of the sector tamil nadu should 
be a beneficiary of this with tariff rises of over 35 and 
fuel surcharge introduced – we expect to see some 
benefit of this flow through to the company these 
events and trends suggest an improving marketplace  
for us to operate in compared with the poor conditions 
last year
i would like to conclude by thanking the management 
and its dedicated team for their commitment during a 
difficult year progressing all projects and being profitable 
in this environment is no mean achievement with our 
team’s continuing enthusiasm i remain confident of the 
company’s bright future
m c gupta
30 june 2012 12
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
we are confident that opg remains on track to achieve 
its target of over 700 mw of capacity our focus 
remains on maximising the performance of our assets 
and derisking our projects
chief executive’s statement
strong operational performance
returns on our flagship asset prove the business model 
view of the chennai site showing chennai i and ongoing construction 13
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
the year ended 31 march 2012 has been characterised 
by strong operational performance of the company’s 
flagship asset and rapid derisking of projects despite a 
challenging trading environment which is now beginning 
to show signs of recovery i am pleased to provide a 
summary of our results and major operational events 
during the year as well as a discussion of our trading 
environment our focus remains on maximising the 
performance of our assets and derisking our projects
returns on our flagship asset prove the 
business model 
revenue was up 37 to £4525m and income from 
continuing operations before period expenses on 
projects exceptional and noncash items and tax was 
£96m these figures reflect a reduced contribution 
during the period from the 26 mw and 10 mw legacy 
plants notwithstanding a strong showing from the 
chennai i – 77 mw in its first full year of operations with 
revenues up 78 a gross profit contribution of £1256m 
and gross margin of 33 similar to last year at 36 
chennai i for which we raised equity as part of our ipo  
in may 2008 has consistently delivered a load factor of 
92 throughout the year the pretax return on equity  
of this project during 2012 was just under 50 making  
it one of the most profitable generation units in india  
our balance sheet has net debt of £3159m at the year 
end representing a gearing of 19
increased revenues compared with the prior year 
reflected the operation of chennai i for the whole of the 
year in addition opg demonstrated that its flexible 
group captive model secures optimum market prices  
for the company’s power average tariffs achieved of  
rs 493kwh were similar to the prior year rs 495kwh 
and at the time of writing following the regulated tariff 
changes announced in april 2012 the tamil nadu 
electricity board has filed an application with the state 
regulator which would enable them to purchase a large 
proportion of generation from our chennai i and ii at 
between rs 530 and rs 570kwh from july 2012 
onwards had the company’s model been to sell power 
on a typical longterm power purchase agreement it 
would not have been in line to benefit from these much 
needed changes in the tariff structure
gross margins remained healthy at 33 and the 
fuelflexibility of chennai i in particular enabled us to 
maintain our load factors and gross margins in the wake 
of increased average international coal prices the sharp 
appreciation of the us dollar against the indian rupee 
exacerbated the effect of rising coal prices further in 
rupee terms notably capital equipment purchases  
are principally denominated in indian rupees and 
accordingly projects remained within budget although 
interest costs were higher than expected due to several 
increases in rates during the year the translation and 
presentation of our results is also adversely affected by 
the circa 10 depreciation of the rupee against sterling 
during the year 
a fuller analysis of operating and profit performance 
highlighting the strong contributions from chennai i  
is provided in the financial review
accelerated growth
at the time of writing the 77 mw chennaiii project  
an accelerated replica of chennai i which has been 
connected to the infrastructure that it shares with its 
operational twin unit is undergoing full scale early 
commissioning in the space of a few weeks opg  
should be a 190 mw generating company compared  
to 20 mw at ipo just over four years ago 
we announced during the year that our use of the 
company’s chennai site has been expanded by the 
combination of two 80 mw projects now 160 mw 
chennai iii making way for the development of a new  
80 mw project on the same site chennai iv despite 
being a young company the profitability of our business 
model has enabled us to fund the equity for chennai iv 
from internal cash flows and not revert to shareholders 
thereby accelerating potential returns on capital
construction has progressed at our 300 mw gujarat 
project site with boiler foundations nearly complete  
and progressive deliveries of equipment on site having 
commenced although the company had obtained  
the necessary environmental approvals these were 
challenged before the national green tribunal which 
upheld the clearances given notwithstanding this  
the company has now decided to further exceed 
requirements by adopting an aircooled cooling process 
as opposed to water cooling accordingly neither the 
pipeline nor the inlet that had been the primary basis of  14
opg power ventures plc
annual report and accounts 2012
overview
business review
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the failed challenges will remain as part of the project 
development plan our legal advisers confirm that all 
approvals for moving to aircooled cooling are in place and 
whilst our epc contractors advise that commissioning is 
more likely to be by h2 2014 we are pleased to report that 
the project budget is not being modified 
minority owned plants
it has been decided on a comprehensive consideration 
of the matter to deconsolidate from group accounts 
effective 1 december 2011 the results of the two minority 
owned legacy plants the 26 mw mayavaram unit and 
the 10 mw waste heat unit as we outlined at the time 
we released our interim results in december 2011 the 
performance and contributions from these minority 
owned plants is negligible and in reaching this decision 
we also took into account their business and earnings 
outlook the increasingly marginal contributions from 
these assets in the light of the scaling up of the majority 
owned assets and especially the management time 
required to be invested in the running of these units
accordingly a fair valuation of these assets as at 
30 november 2011 by independent valuers as required 
by the accounting standards was undertaken and the 
resulting noncash nonoperating adjustment of £482m 
to their carrying value as at that date applicable to the 
company charged to period revenue the declared 
results reflect this charge after taking into account the 
earnings from these units for the first eight months of  
the year 
henceforth the group’s interests in these units will be 
treated as investments at the adjusted carrying value of 
£138m this compares with the original outlay by the 
group of a modest £005m in these plants
no problems with coal supply
opg received all committed supplies of coal under indian 
linkages supplemented by imported coal from asia 
largely under contract 
opg’s plants are engineered to work with either higher 
ash indian coal or high moisture indonesian coal or a 
blend of the two such design specification provides 
opg with flexibility at times of either shortage in indian 
coal supplies or increased prices of imported coal most 
other indian power producers are reliant on obtaining 
coal either from the development of coal blocks allotted 
to them which are currently substantially delayed or 
entirely on imported coal moreover chennai i uses a 
lower energy coal for which demand is typically not as 
high and therefore prices not as elastic as some of the 
higher quality indonesian or australian coals thus enabling 
us to support our margins being located in proximity to 
the coast means we do not suffer inland transportation 
costs to the same degree as inland producers 
while international coal prices have softened in recent 
weeks we expect prices to trend upwards in the medium
term as coal supplies and demand fall more into line
macro case remains intact and the tariff 
environment is showing signs of improvement
indian gdp registered an increase of 65 for the year to 
march 2012 whilst less than the 7 5 to 8 growth rates 
of the previous two years this is still an appreciable 
performance given the european debt issues and other 
problems of the world economy the lower growth 
figures may be attributed in part to a tighter monetary 
and exchange policy stance with consequent increases 
in interest and exchange rates there are indications that 
this policy is being relaxed and gdp growth expectations 
for the current year are 65
the 11th five year plan period closed on 31 march 2012 
with increase in power capacity of 55 gw a near 70 
achievement compared with the target of 78 gw the 
persistent shortfall in new capacity additions has only 
exacerbated the prevailing power deficits with peak 
deficits above 12
against this need to rebalance demand and supply  
state utilities constituting the country’s dominant power 
producers and distributors have held their price lines for 
the sale of power virtually static in the last several years 
notwithstanding fuel availability and cost pressures that 
became especially acute last year this affected margins 
for all private power producers and tempered the 
incentive to make large scale fresh investments in the 
sector
there is now increased recognition on the part of the 
regulators and the utilities of the need to charge realistic 
prices for electricity this recognition has already 
translated into a recent 35 increase in tamil nadu tariffs 
as well as in the imposition of a fuel price adjustment 
mechanism and the resolve to review tariffs annually 
similar exercises have either been concluded or have 
been taken up for review across the country
looking ahead however there are signs that the long 
awaited structural changes in the sector primarily in the 
form of realistic tariffs and pricing by the utilities are 
under way given the stretched financial position of the 
state utilities the central regulator has directed state 
regulators to ensure that tariffs are reviewed annually 
several state utilities have already in the last few weeks 
filed applications with their state regulators for significant 
tariff increases
chief executive’s 
statement 
continued 15
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
summary and outlook
overall fy2012 saw opg deliver earnings per share  
of 0072 pence per share on an enlarged equity base  
of 351 million ordinary shares and progressing all its 
projects in a challenging trading environment in which 
most of our peers incurred losses and deferred projects
with the continuing maturing of our capacities we are 
confident that opg remains on track to achieve its target 
of over 700 mw of capacity now with aspects of our 
trading environment showing signs of recovery and 
should these persist we look forward to the forthcoming 
commissioning of chennai ii and the completion of 
construction of chennai iv in the coming year as these 
will be important milestones in establishing a stable 
multiasset revenue platform from which to deliver 
leading returns to shareholders
arvind gupta
30 june 2012
tariffs charged to industrial customers under the group 
captive model are correlated to state utility rates and  
are therefore expected to rise along with the utility  
tariff increases
our business and our team are maturing
over the last two years opg has strengthened its own 
inhouse management capabilities at the time of our ipo 
we were a young company with a fleet of independent 
consultants and companies leading many aspects of  
our project implementation development and operation 
opg now has 280 employees many of whom carry  
out functions that were in the past outsourced such as 
our new inhouse epc division that completes balance 
plant construction and our inhouse operations and 
maintenance teams further we have now formalised our 
health  safety environment committee of the board 
we have also instituted a management executive 
committee and our initiatives to support and interact  
with communities in and around our projects are better 
organised i look forward to our continued maturing and 
on behalf of the entire board want to thank the entire 
opg team and its associates for their continued 
enthusiasm and support 
project commissioning schedule mw
location capacity
economic 
interest
planning 
permission
debt 
status
equity funding 
status
fueldomestic 
linkage
status
in development
chennai iv 80 mw 99
✓ 
under 
progress
internal 
accruals
✓ expected 
2013
chennai iii 160 mw 99 ✓ ✓ ✓ imported expected 
2014
gujarat 300 mw 99 ✓ ✓ ✓ 70 coal 
linkage 
obtained
expected 
2014
bellary 12 mw 99 to be 
obtained
under 
progress
✓ coal linkage 
to be obtained
expected 
2014
  16
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
the chennai site hosts four plants with a total capacity of 394 mw  
of which 77 mw is in operation and 317 mw under construction
maximising opportunity 17
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
394 mw in operation and under 
construction in chennai
expansion of capacity is delivered by building 
modular plants the revised configuration of 
chennai iii from 2 x 80 mw to 160 mw is expected 
to result in savings in coal consumption given the 
lower turbineboiler heat rate for a 160 mw unit at 
the same time the reduced footprint of a 160 mw 
unit makes available space on site for the newly 
committed chennai iv
chennai i ii and iv are replica plants with similar 
technology and equipment all chennai plants 
benefit from sharing land certain infrastructure 
and other operational resources  18
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
continuous supply
the electricity act 2003 opened up the power generation markets to private 
players under the group captive model opg’s power plants are set up under 
the group captive model which allows the group to supply directly to industrial 
and commercial customers on shortterm contracts whilst the majority of  
the industry supplies to the state electricity board on longterm contracts  19
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
india suffers from acute power shortages 
with industrial and commercial customers 
facing power cuts regularly with this 
backdrop hospitals face operational 
constraints and in the absence of any 
alternatives depend on diesel generated 
power which is very costly opg’s model 
allows power supply directly to such 
customers through the state grid generally 
at attractive prices benefiting them on 
cost and being able to receive reliable and 
uninterrupted power 
opg’s customers include hotels hospitals 
commercial companies and industries  
we see this as a growing opportunity given 
the demand – supply gap in the sector 20
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
strategic locations 21
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
transporting coal from the coal mines by 
truck or train can be expensive due to the 
distance and sometimes it is not possible 
due to inadequate transport infrastructure 
opg’s principal plant sites have been chosen 
to be in close proximity to port eg gujarat 
site is 30 kilometres from the port this allows 
opg to bring indian coal and imported coal 
by sea to the nearest port – thereby reducing 
significant land logistics cost 
in addition our boilers are designed to burn 
either domestic or imported coal or any mix 
of the two 
coal is the principal raw material for 
coal based thermal power plants and 
is obtained either from indian coal 
blocks all of which are controlled by 
coal india limited a state owned 
company or imported from indonesia 
australia or south africa
second coal shed under construction –  
to be shared by chennai iii and iv 22
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
in 2012 the 77 mw chennai i plant commissioned during 2010 
made a full year contribution to output the plant proved its mettle 
surpassing expectations in regard to performance parameters
operational review
increasing capacity
617 mw of projects under development at chennai and gujarat are all 
under active construction and due to be commissioned by fy2015
production and output levels
asset generation mn units availability  plant load factor 
2012 2011 2012 2011 2012 2011
opg power generation – chennai 77 mw
1
6476 3293 951 838 922 753
opg renewable energy – chennai 10 mw
2
302 556 756 888 515 634
opg energy – mayavaram 254 mw
2
882 1281 972 915 593 813
total 7660 5130 
1 data relates to the full year 
2 2012 data relates to the first eight months of the year
 gujarat boiler foundation work in progress 23
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
in 2012 the 77 mw chennai i plant commissioned during 
2010 made a full year contribution to output the plant 
proved its mettle surpassing expectations in regard to 
performance parameters the legacy units of 26 mw 
and 10 mw did not perform as well and in fact output 
levels at both of these units declined when compared  
to the previous year due to reduced gas and waste  
heat availability the results of these legacy plants are 
included in the table for the eight month period up to 
30 november 2011
chennai i – 77 mw
during the year the chennai i plant achieved a plf of 
922 and an availability of 951 chennai i is sustaining 
these high levels of performance in the current year too 
the plant has exceeded expectations in the case of 
certain operating parameters for plants of this capacity 
such as auxiliary power consumption and makeup water 
requirements the plant also achieved the lowest specific 
oil consumption secondary fuel in the month of april 
2012 at 005 mlkwh the plant has achieved 100 
utilisation of fly ash and bottom ash and no ash is stored 
in the dyke in the plant premises thereby reducing 
land use
the efficiency of the plant has improved over the months 
and has been maintaining at near optimum levels since 
december 2012 we are confident of maintaining these 
high levels of performance for the financial year 2013 
development projects 
we are currently developing additional capacity at the 
chennai site of 317 mw through the following projects
chennai ii
the project is under trials and commissioning from june 
2012 the project is on track to commence commercial 
operation from september 2012 
chennai iii
letters of intent are in place for boiler and steam turbine 
generator balance of plant equipment has been ordered 
the power transmission facility for the evacuation of 
power is already installed the plant is expected 
to commission in q3 2014
chennai iv
the 80 mw chennai iv is in an advanced stage of 
construction the major supplies have been received  
and installation of equipment is under way the turbine  
is due for mechanical run test ‘mrt’ in bhel 
manufacturer works in early july 2012 and thereafter will 
be despatched to project site for installation work the 
power transmission facility for evacuation of power is in 
place the plant is expected to commission q2 of 2013
gujarat 
the gujarat 2 x 150 mw project has received all 
clearances construction activities have commenced 
at the project site with major equipment foundations 
completed and ready for installation of equipment 
equipment supplies have commenced from the 
btg supplier bhel the project is expected to be 
commissioned in h2 2014 following the move to air
cooled condensers in place of water cooling
bellary 
during the year opg acquired a partially constructed 
12 mw thermal power plant in the industrial area of 
bellary karnataka the plant is on a 120 acre site 
and has the potential to expandbuild up to 350 mw 
of capacity
9
8
7
6
5
4
3
1
2
chennai i – improvement in consumption parameters
august 2010 – march 2011 april 2011 – march 2012
auxiliary power consumption 
sp oil consumption mlkwh
dm water makeup 
8024 1742 134 7718 1015 082 24
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
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 change over time
sectorrelated risks
risk potential impact monitoring and mitigation
power sale in 
the group 
captive model 
the group’s power plants derive their revenue from the group 
captive model selling power to captive consumers and partly from 
sale on shortterm mediumterm or longterm 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 mediumterm
 – 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
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 nonsupply 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 longterm 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 
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 and 
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
funding of 
projects 
the development of power plants is a capital intensive business and 
the group’s projects require access to both equity and debt markets 
delay in raising finance or the terms of debt funding could affect the 
timely completion and cost of its projects and servicing of debt 
 – assessing financial viability of projects 
 – financing projects with an optimum mix of debt and 
equity including internal accruals
 – obtaining inprinciple project finance from banks before 
commencement of projects
 – monitoring cash flows to ensure repayment of debt and 
interest in line with schedule 25
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
indiaspecific risks
risk potential impact monitoring and mitigation
government 
policy and 
regulations
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
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 government policy to withdraw these 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
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 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
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
sectorrelated risks continued
risk potential impact monitoring and mitigation
health  
safety and 
environmental 
and local 
stakeholder 
management 
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
 – setting up a formal committee responsible for health 
safety and environmental issues at board level is under 
consideration
 – 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 26
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
financial review
the following is a commentary on group financial performance in the year highlighting the key financial drivers and 
performance indicators and financial metrics
income statement
year ended 31 march 2012 2011 change
£m £m 
revenue 4525 3315 37
ebitda 1257 1554 19
net finance costs 202 132 53
income from continuing operations  
before tax nonoperational andor exceptional items 959 1301 26
expenditure during the period on expansion projects 063 040 58
employee stock option charge 145 145 0
electricity consumption tax relating to prior years 043 –
impact on account of loss of control 482 –
profit before tax 226 1116 80
taxation 204 241 15
profit after tax 022 875 98
revenue
opg revenue has increased by £121 million reflecting a 37 growth year on year primarily from a full year 
contribution by the 77 mw plant partially offset by inclusion of only eight months results for the 26 mw and  
10 mw plant 
production and output levels from the group’s operating power plants compared to the prior year were as follows
asset generation mn units availability  plant load factor 
2012 2011 2012 2011 2012 2011
opg power generation – chennai 77 mw
1
6476 3293 951 838 922 753
opg renewable energy – chennai 10 mw
2
302 556 756 888 515 634
opg energy – mayavaram 254 mw
2
882 1281 972 915 593 813
total 7660 5130 
1 data relates to the full year 
2 2012 data relates to the first eight months of the year
  27
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
gross profit
gross profit in 2012 was £1483m 2011 £1448m gross profit is driven mainly on account of the full year operation of 
the 77 mw plant and to an extent offset by the inclusion of only eight months results from the 10 and 26 mw plants 
reconciliation of gross profit given below
particulars £m
gross profit in 2012
1
1483 
gross profit in 2011 1448
increase in gross profit 035
reduced on account of reduction compared to 2011 in four months for 25 mw plant and 10 mw plant 
compared to previous years 174
reduced on account of low plf and increase in fuel gas cost and consumption in 25 mw and 10 mw 
for eight months 166
increased on account of increase in generation in 77 mw and net of lower selling price at rs 380 
against rs 505kwh for a period of four months 477
reduced effect of incremental inter group elimination 2012 102
increase in gross profit 035
1 excluding electricity consumption tax of £093m
gross profit margins plant wise contribution
the gross profit contributions of the three operating plants of the group are presented below
£m opgpg 77 mw opge 26 mw opgre 10 mw inter co elimination total
2012 2011 2012 2011 2012 2011 2012 2011 2012 2011
revenue 3848 2158 503 819 174 337 4525 3315
cost of revenue
1
2592 1387 289 399 207 229 046 148 3042 1867
gross profit 1256 771 214 420 033 108 1483 1448
gross profit  33 36 43 51 19 32 33 44
1 excluding electricity consumption tax of £093m
gross profit contribution from the 77 mw plant was strong in the year under report the gross profit margins of the 
plant at 33 were only marginally lower 2011 36 due to the ability to blend 6436 high moisture indonesian coal 
with indian coal the average prices of the latter being lower note 1 below however gross profit margins at the 26 
mw plant were eroded to 43 2011 51 due to higher gas prices due to nonavailability of suitable iron ore during 
the year resulting in poor waste heat the gross profit margins of the 10 mw plant turned negative
a lower selling price of rs 380kwh paid by the state utility for june to september 2011 a claim for higher agreed 
pricing of rs 505 is being pursued the effect of this on gross profit is also shown plant wise note 2 below
note 1
2012  use weighted 
average 
cost for 
2011–12
2011
rsmt rsmt
indonesian coal – average factory gate price 3940 64 2522 3285
indian coal – average factory gate price 2331 36 839
total 3361 3285 28
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
note 2
particulars opgpg opge opgre £m
£m £m £m total
effect in gross profit on account of lower selling price from state utility for 
four months 2116 0232 0112 2460
ebitda
earnings before interest taxation depreciation and amortisation ‘ebitda’ is a measure of a business cash 
generation from operations before depreciation interest and exceptional and nonstandard or nonoperational items 
such as the annual charge for stock options which is a noncash item or expenses relating to projects under 
construction this is reconciled with profit after tax as follows
year ended 31 march 2012 2011 change
£m £m 
profit after tax 022 875 98
tax 204 241 15
impact on loss of control 482 0
depreciation 140 121 15
esop expenses 145 145 0
period expenses on projects under development 063 040 58
net finance cost 202 132 53
total 1257 1554 19
note prepayment of chennai i 77 mw debt for the year 2012 was £443m 
profit before tax
£m opgpg opge opgre
non
operating 
entities
1
 net 
of inter group 
eliminations total
pbt – fy2011–12 755 101 055 575 226
pbt – fy2010–11 779 399 083 145 1116
decrease in pbt 024 298 138 430 890
impact on deconsolidation of subsidiaries 482
electricity consumption tax prudential provision 092
decrease in administration and selling expenses 008
decrease in other income 290
increase in net finance cost 070
increase in gross profit 035
total 890
1 includes a opg power gujarat pvt ltd india b gita power  infrastructure pvt ltd india c caromia holdings ltd cyprus  
d gita energy pvt ltd cyprus e gita holdings pvt ltd cyprus f opg power ventures plc isle of man
taxation 
the group consolidated pbt at £226m is after charging £482m towards adjustment in the carrying value of the 
legacy plants and £145m towards amortisation of employee stock options both being noncash charges at the level 
of holding company as such the effective pbt subject to tax is £853m
financial 
review 
continued 29
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
expenditure on projects
this relates to expenses incidental to projects under construction these expenses in 2012 were £063m in 
2011 £040m
employee stock option charge 
this pertains to the amortisation of the value of stock options granted to certain directors and is noncash in nature
charge relating to deconsolidation of subsidiaries
during the year both the 10 mw and 26 mw plants were consolidated only for a period of the first eight months of the 
year and were subsequently deconsolidated with effect from 1 december 2011 an independent fair valuation of 
these plants has been carried out and accordingly an amount of £482m has been charged to the statement of 
comprehensive income in the current year
profits after tax
profits after tax have decreased by £853m representing a 98 decline from £875m in 2011 to £022m in 2012 
basic earnings per share of 0072 pence in 2012 has decreased by 97 over 2011 
property plant and equipment
property plant and equipment has increased by £1903m 2571 yearonyear growth mainly reflecting the  
increase in capital work in progress on account of additional power plants in chennai and gujarat and despite  
the deconsolidation of the 10 mw and 26 mw power plants
other noncurrent assets
other noncurrent assets have decreased by £512m by 62 yearonyear primarily as a result of the deconsolidation 
of the 26 mw and 10 mw power plants
current assets
current assets have decreased by £147m to £117 4m yearonyear primarily as a result of the following 
a reduction in the cash and cash equivalents by £3323m due to the increase in investment in the gujarat and 
additional chennai power plants and also due to the deconsolidation of the 10 mw and 26 mw
b increase in trade receivables by £883m increase in other assets by £7 35m
current liabilities
current liabilities have increased by £7 04m primarily on account of the increased bank borrowings and buyers credit
other noncurrent liabilities
other noncurrent liabilities have increased by £1142m primarily on account of increase in bank borrowing to meet 
the capital project expenses
cash flows
2012 2011
£m £m
operating cash 1223 1515 
tax paid 053 197
change in working capital assets and liabilities 759 943
purchase of property plant and equipment net of disposals 7135 1976
other investments 259 141 
net cash used in investing activities 6877 1835
net interest paid 482 265
free cash flow 6947 1725
equity private placement – 5738
total cash change before net borrowings 6947 4014
operating cash flow decreased from £1515m in 2011 to £1223m in 2012 a decrease of £292m or 19 
the decrease is primarily due to the reduced profit before tax 30
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
during the year opg planted 2000 saplings with tree guards within the 
chennai premises
the company takes seriously its responsibilities to the 
environment and the communities in which the group 
operates we believe that these responsibilities can 
have a positive impact on shareholder returns as well  
as on our reputation and growth prospects
responsible growth
corporate social responsibility
tree guards to protect our saplings 31
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
awaiting the validation and verification of the carbon 
emissions reduction registration for the mayavaram gas 
plant and the voluntary emissions reductions 
registration for the 10 mw waste heat plant
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 it is the policy of the 
group that the training career development and 
promotion of disabled persons should as far as possible 
be identical to that of other employees
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 during the 
last year not only were our power generation plants 
managed by the company but daytoday operational 
responsibility which had in previous years been delegated 
to tata power has been taken over by an experienced 
inhouse team built specifically for this purpose and 
trained in best practices by tata power thus at the sites 
there has been a vast difference from the previous years in 
that the full operation maintenance and project execution 
is being undertaken by opg employees whereas earlier 
there were relatively few opg employees on site and the 
majority of staff were employed and supervised by tata 
power this organisational shift is a key step in the 
development of the group and is a strong indicator that 
the group is maturing with regards to staff training and 
health and safety responsibility and implementation
health and safety
the board is committed to ensuring that the group’s 
activities do not result in injury or illness to any employee 
contractor or member of the public and strives hard to 
prevent workrelated incidents illnesses and injuries
all operating units must comply with our health and 
safety policies in addition to meeting requirements 
specific to their businesses as well as customers’ 
expectations specifically the group aims to obtain 
ohsas 18001 certification for the chennai plant in the 
near future the board is committed to ensuring that 
these principles are articulated to all employees and that 
they are effectively implemented
safety policy is implemented at all project sites and 
operating plants by identifying potential risk areas and 
taking appropriate steps to mitigate them these 
measures include a programme of training for staff and 
contractors regular safety meetings and a process to 
encourage employees to raise their concerns and make 
suggestions for improving workplace safety
environment
the group’s operations strive to achieve continuous 
improvements in environmental performance and seek  
to prevent mitigate reduce or offset the environmental 
impact of our activities the board continues to  
monitor the level of environmental incidents and 
workplace accidents
going green
opg’s comprehensive environmental management 
systems ems initiatives continued at a renewed pace 
during 2011–2012 in addition to a solid waste reduction 
and management system implementation the company 
has initiated processes and systems for getting the 
following certifications for the chennai site
1 indian organization for standards iso 14001
2 occupational health and safety assessment 
ohsas 18001
3 indian green building certification igbc
during the year opg also joined hands with the district 
forest office in planting 2000 saplings with tree guards 
within the chennai premises our dedicated staff 
continues to nurture and care for these trees on a 
continual basis
we understand that our approach to addressing the 
issue of global warming and reducing carbon emissions 
is important to the group’s future competitiveness the 
group has therefore registered under the united nations 
framework convention on climate change and is  32
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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 in line with our corporate 
social involvement policy
educational aid
opg has continued to provide educational assistance in 
the local area near our power plants during june 2011 
fifteen school children at kayalarmedu village were 
offered full year scholarships 600 children belonging to 
the villages periya obulapuram chinna obulapuram and 
kayalarmedu received school supplies for the entire year 
before the commencement of the school year in 
bhadreshwar near the kutch site opg provided to all 
students of bhadreshwar high school supplies including 
uniforms stationery and sports equipment
each of our businesses maintains an accident reporting 
system these systems are used to identify trends with  
a view to developing strategies for reducing the number 
of reportable as well as nonreportable accidents and 
near misses
supply chain
the group works with a team of industryleading 
suppliers and contractors in order to mitigate the 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
school children receive books
responsible 
growth 
continued 33
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our team of civil engineers assisted in developing the 
infrastructure facilities in these schools they designed 
and constructed a compound wall for the school at 
sirupuzhal pattai village and it stands today to provide  
a safe and secure school premises to the children 
attending there
opg also partnered with nongovernmental organisations 
during the year to reach out to the educational needs  
of children in neighbouring districts one of our key 
involvements is with duraimurugan educational trust 
which strives to keep children in school in spite of the 
economic crisis faced by their families
flood relief
opg working with the local government bodies provided 
basic provisions to the local populations after the floods 
of november 2011 we donated food supplies such  
as rice to the villagers of the flood affected regions of 
chinna obulapuram and essential clothing in the form  
of sarees and dhoties to 350 villagers of papankuppam 
and kayalarmedu
jivan prabhat
opg outreach
we are proud to report that opg outreach launched in 
july 2011 near our kutch site has completed one 
successful year during this year 120 women have 
completed the training programme and 32 women have 
started working and making products which are being 
purchased by our collaborator welspun the additional 
income from this has greatly augmented the monthly 
household income of these families opg has provided 
the entire infrastructure for the training programme and 
the work centre including equipment utilities and 
supplies going forward we expect more women to 
enrol in the training programme and to eventually start 
work at the work centre both of which will empower the 
local women and contribute greatly to the socio
economic development of the surrounding community 
and families 34
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board of directors
mr munish c gupta
nonexecutive chairman
mr munish c 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 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 gupta 
is not related to either arvind or ravi gupta
mr arvind gupta
managing director and chief executive officer 
mr arvind gupta graduated with a degree in commerce at 
the university of madras and joined the opg family business 
opg enterprises in 1979 mr 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 development of the power plants of the opg group as well 
as its overall strategy growth and direction
mr v narayan swami
finance director 
mr v narayan swami has over 30 years’ experience of finance 
and management mr swami started his career with the state 
bank of india before moving to ashok leyland limited in 1976 
for 10 years until 1992 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 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 
investment by hutchinson whampoa
mr swami was group cfo and director of best  crompton 
engineering listed on the bombay stock exchange before 
joining the group in 2007 as finance director 35
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mr martin gatto
senior independent nonexecutive director
mr martin gatto has considerable experience as a senior 
financial professional and has worked at a number of large uk 
quoted public companies 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 until recently  
mr gatto was nonexecutive chairman of neutrahealth plc  
an aimlisted company he is also chairman of medicodental 
holdings limited
he is a graduate of brunel university and is a fellow of the 
chartered institute of management accountants
mr p michael grasby
independent nonexecutive director
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 16000 mw of generating 
capacity until 1998 following the demerger of national power 
in 1999 he joined international power as senior vicepresident 
for global operations and retired in 2002 
mr grasby has held power company directorships in the czech 
republic portugal turkey and pakistan mr grasby was formerly 
a nonexecutive director of drax plc until april 2011 where he 
chaired the health and safety committee and sat on the audit 
remuneration and nominations committees 
mr ravi gupta
nonexecutive director
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 is chairman of that company mr gupta has also 
been associated with the flour milling industry setting up 
a new flour mill in 1988 in tamil nadu state salem food 
products limited where he is managing director 36
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corporate governance
m c gupta
nonexecutive chairman
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 board had taken a number of steps  
to comply with the code with the longer term objective of achieving  
full compliance in all material respects the board continues to  
make progress in this regard and is continuing to develop the  
following initiatives 
1 schedule of matters reserved a11
the board has agreed to formalise in due course a schedule of 
matters specifically reserved to it for decision at present the board 
reviews and adopts the group’s strategy plan and key risks policies 
and procedures during the current year an executive committee 
‘exco’ of management was established to support the board in 
implementing strategy and it is the exco’s responsibility to report 
relevant matters arising in the exco to the board for its consideration 
and approval
 
2 division of responsibilities a21
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 requires that this be set out in writing and 
agreed by the board and this is to be done in due course 
3 nonexecutive directors a42
the board takes note of the requirements under the code that the 
chairman holds formal meetings with the nonexecutive directors 
without the executives present and this is to be commenced going 
forward further the code requires the nonexecutive directors to 
meet without the chairman to appraise the chairman’s performance  
a process which at this stage of the company’s development the 
board believes is early to adopt 
4 nominations committee b21 
the board will at an appropriate time establish a nominations 
committee and is finalising its terms of reference 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 
 
5 evaluation b6 
at its meeting in august 2011 the board considered a paper  
outlining the benefits of evaluating the effectiveness of the board  
its committees and the individual directors it was agreed that the 
matter would be given further consideration with a view to adopting a 
process it has now been agreed to requisition the services of external 
consultants to design a suitable process for the board that can be 
implemented informally at first and more formally over time  37
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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 
decisionmaking 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
reelection of directors
at every agm onethird 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 onethird 
shall retire from office by rotation on this basis martin gatto and 
michael grasby will offer themselves for reelection at the agm on  
18 september 2012
information and professional development
preliminary to the company’s admission to aim in may 2008 all 
directors received a briefing from the company’s nominated advisor  
of their duties responsibilities and liabilities as directors of an aim 
company 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 
maintains frequent contact with the other nonexecutive 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 b41 of the code
6 audit and remuneration committees independence  
c31 and d21
the code states that audit and remuneration committees should 
comprise at least three or in the case of smaller companies two 
independent nonexecutive directors munish gupta michael grasby 
and martin gatto are considered to be independent under the code 
however ravi gupta does not meet the independence criteria set 
down in the code mr gupta is the brother of arvind gupta managing 
director and ceo nevertheless the board considers him to be of an 
independent cast of mind and as a founder and chairman of kanishk 
steel listed on the bombay stock exchange since 1991 his industry 
experience to be of particular relevance and value to the deliberations 
of the board and its committees
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
nonexecutive
1 munish gupta nonexecutive 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 b12 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 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
the company maintains directors’ and officers’ liability insurance and 
indemnity cover the level of which is reviewed annually 38
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corporate governance continued
board performance
since the company’s admission to aim in may 2008 the board has 
had an opportunity to develop a working relationship to the extent that 
a meaningful evaluation of the board its committees and the individual 
directors can now take place accordingly as reported above it has 
been agreed to requisition the services of external consultants to 
design a suitable process for the board that can be implemented 
informally at first and more formally over time 
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 na na na na
narayan swami 4 3 na na na na
munish gupta 4 3 2 2 – –
martin gatto 4 4 2 2 – –
michael grasby 4 4 2 2 – –
ravi gupta 4 3 2 2 – –
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 practices 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 at least once a year the 
audit committee will also meet the group’s external auditors without 
management present
the audit committee has considered the following matters during the 
year under review
  the reappointment of grant thornton as auditors to the company 
and
  reviewing the integrity of the group’s preliminary and half year 
results announcements and any other formal announcement 
relating to its financial performance
remuneration committee 
the members of the remuneration committee are munish gupta 
martin gatto michael grasby and ravi gupta 
the primary duty of the remuneration committee is to supervise and 
determine on behalf of the board the group’s policy and its 
implementation in relation to the remuneration of the executive 
directors and senior managers of the group the remuneration of  
the nonexecutive 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 40 to 43
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 on an annual basis
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 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
with grant thornton having been auditors for two years the committee 
considers it appropriate to review their independence and effectiveness 
at the end of this financial year 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 nonaudit services for transactions 
and tax matters however to regulate the position the committee will 
establish a policy on the provision of nonaudit services by the external 
auditor that policy will set out the external auditor’ s permitted and 
prohibited nonaudit services and a fee threshold requiring prior approval 
by the audit committee for any new engagement 39
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going concern 
the group closely monitors and manages its liquidity risk in assessing 
the group’s going concern status the directors have taken account  
of the financial position of the group anticipated future trading 
performance its bank and other facilities its capital investment plans 
and forecast gross operating margins
the group requires funds both for shortterm operational needs as 
well as for longterm investment programmes mainly in growth 
projects the group generates sufficient cash flows from its current 
operations which together with the available cash and cash 
equivalents and liquid financial asset investments provide liquidity both 
in the shortterm as well as in the longterm the ipo in 2008 and our 
equity raising of c £60 million in february 2011 have further 
strengthened the group’s financial position and are expected to be 
sufficient to meet the ongoing capital investment programme and 
liquidity requirement of the group in the foreseeable future ability to 
meet its financial obligations as they fall due
on this basis after making appropriate enquiries the directors consider 
that the group has adequate resources to continue in operational 
existence for the foreseeable future accordingly they continue to 
adopt the going concern basis in preparing the 2012 accounts
shareholder relations and the agm
the chief executive senior independent director and finance director 
met with a number of key investors during the year accompanied by 
nonexecutive directors as appropriate
the chairman will be primarily responsible for ensuring the effective 
communication of shareholders’ views to the board as a whole and 
will update the board accordingly board members will seek to keep 
abreast of shareholder opinion and to discuss strategy and 
governance issues with them as appropriate 
the annual general meeting of the company will be an opportunity  
to communicate with shareholders and the board welcomes their 
participation notice of the annual general meeting will be sent to 
shareholders at least 21 days before the meeting the voting results 
will be made available on the company’s website following  
the meeting
corporate information including the annual report and other financial 
information and announcements will be made available on the 
company’s website at wwwopgpowercom 40
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directors’ remuneration report
introduction
this report sets out information about the remuneration of the 
directors of the company for the year ended 31 march 2012 this 
report has been substantially prepared in accordance with schedule 8 
of the large and mediumsized companies and groups accounts 
and reports regulations 2008 the ‘regulations’ in line with the 
relevant requirements of the financial services authority’s listing 
rules part ii of this report has been audited by grant thornton in 
accordance with the regulations
part 1 – unaudited information
remuneration committee
the members of the remuneration committee are munish gupta 
martin gatto chairman ravi gupta and michael grasby who with the 
exception of ravi gupta are all independent nonexecutive directors 
terms of reference have been approved for the remuneration 
committee and its primary duty is to supervise and determine on 
behalf of the board the group’s policy and its implementation in 
relation to the remuneration of the executive directors and senior 
managers of the group the remuneration of the nonexecutive 
directors is a matter for the chairman and the executive members of 
the board 
the main responsibilities of the committee are to
  assess and set compensation levels for the executive directors and 
senior managers
  review 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
  review the design of share incentive plans for the approval of the 
board and shareholders
  determine the policy for and scope of pension arrangements for 
each executive director and senior manager and
  ensure 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 advisors 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 38
remuneration policy
the remuneration committee has agreed 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 operates in a highly competitive environment for the 
group to continue to compete successfully it is essential that the  
level of remuneration and benefits offered achieves the objectives of 
attracting retaining motivating and rewarding the necessary high 
calibre of individuals at all levels across the group 
the group therefore sets out to provide competitive remuneration  
to all its employees appropriate to the business environment in the 
market in which it operates 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 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 a cohesive reward structure 
consistently applied and with links to corporate performance is seen 
as critical in ensuring attainment of the group’s strategic goals
the group will 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 
longterm 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 longterm strategic and financial 
objectives set by the board 
stock option plan
the directors and other senior management may be granted awards 
under the stock option plan approved by the board on 16 july 2009 
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 41
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annual bonus
no bonuses were paid during the year
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 pa £
arvind gupta managing director and 
chief executive officer
23 may 2008 12 months’ prior written notice on either side 156474
v narayan swami finance director 23 may 2008 three months’ prior written notice on either side 46942
 under their service agreements mr gupta and mr swami are entitled to medical travel insurance and accommodation and other allowances which are included in their gross salaries 
chairman and nonexecutive directors
the remuneration of the chairman of the company and the nonexecutive directors consists of fees that were paid quarterly in arrears the 
chairman and nonexecutive directors did not participate in any longterm incentive or annual bonus schemes nor did they accrue any pension 
entitlement neither the chairman nor any of the nonexecutive directors has a contract of employment with the company each has instead 
entered into a contract for services with the company
nonexecutive directors’ contracts for services 
nonexecutive directors were appointed for an initial term of 12 months 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 reelection 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 nonexecutive directors’ letters of appointment are as follows
director date of appointment notice period fees pa £
munish gupta 6 may 2008 12 months’ prior written notice on either side 25000
martin gatto 6 may 2008 three months’ prior written notice on either side 25000
michael grasby 6 may 2008 three months’ prior written notice on either side 25000
ravi gupta 12 may 2008 12 months’ prior written notice on either side 25000
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  42
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directors’ remuneration report continued
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 2012 1 april 2011
gita investments limited
1
 153061225 153061225
gita power inc 17006802 17006802
sri hari vallabha enterprises  investments private limited
1
 3401361 3401361
dhanvarsha enterprise  investments private limited
1
2551020 2551020
goodfaith vinimay private limited
1
2551020 2551020
michael grasby 10000 5000
martin gatto 60000 50000
total 178641428 178626428
note 
1 beneficial interest in these shareholdings vests with arvind gupta
there were no changes to directors’ interests between 31 march 2012 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 2012 other than their service 
contracts details of which are given on page 41
part ii – audited information
directors’ remuneration for the period 1 april 2011 to 31 march 2012
 
salary annual bonus and benefits
salaryfees benefitsinkind annual bonus total 2012 total 2011
nonexecutive chairman
munish gupta 25000 – – 25000 25000
executive directors
arvind gupta 156474 – – 156474 169109
v narayan swami 46942 – – 46942 50734
nonexecutive directors
martin gatto 25000 – – 25000 25000
michael grasby 25000 – – 25000 25000
ravi gupta 25000 – – 25000 25000
total 303416 – – 303416 319843
notes 
1 no consideration was paid or received by third parties for making available the services of any executive or nonexecutive director
2 under their service agreements mr gupta and mr swami are entitled to medical travel insurance and accommodation and other allowances which are included in their gross salaries  43
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directors’ share options
options outstanding as at 31 march 2012
movements during the period
option granted option price £ 1 april 2011 lapsed exercised 31 march 2012 latest exercise date
gita investments limited 16 july 2009 £060 21524234 nil nil 21524234 by 15 july 2019
martin gatto 16 july 2009 £060 1000000 nil nil 1000000 by 15 july 2019
at 31 march 2012 the closing midmarket price of the company’s shares was 50p during the year under review the company’s closing 
midmarket share price ranged between a low of 35p and a high of 97p
this report has been approved by the board of directors of the company
munish gupta
chairman remuneration committee
30 june 2012 44
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financial statements
directors’ report
the directors present their report together with the audited financial 
statements of the group for the year ended 31 march 2012
1 incorporation
the company is incorporated and domiciled in the isle of man
2 principal activities
the principal activities of the group are developing owning and 
operating power stations in india electricity generated from its plants 
is sold principally to captive consumers or in the shortterm market in 
india and to the state electricity board
the subsidiary and associated undertakings principally affecting the 
results or net assets of the group in the year are listed in note 33 to 
the financial statements
3 business review
a review of the company’s business its principal activities and future 
development can be found in the pages listed below and are 
incorporated into this report by reference 
i key performance indicators on pags 8 to 9
ii chairman’s and ceo’s statements on pages 10 to 15
iii the operational review including details of the main trends and 
factors likely to affect the future development performance and 
position of the business on pages 22 to 23
iv the responsible growth report on pages 30 to 33
the business review has been prepared to provide the company’s 
shareholders with a fair review of its business and a description of the 
principal risks and uncertainties facing it it may not be relied upon by 
anyone including the company’s shareholders for any other purpose
information about the use of financial instruments by the group is 
given in note 25 to the consolidated financial statements
4 dividends
the financial statements for the year ended 31 march 2012 are set  
out on pages 47 to 77 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 2011 no dividend was paid for the year 
ended 31 march 2011
5 directors
details of changes to the board during the period and of the directors 
offering themselves for reelection at the forthcoming agm are set out 
in the corporate governance report on pages 36 to 39
details of directors’ service agreements are set out in the directors’ 
remuneration report on page 41
the interests of the directors in the shares of the company are shown 
in the directors’ remuneration report on page 42
biographies of all the directors at the date of this report are set out on 
pages 34 to 35
6 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 
7 substantial shareholdings
the company has been notified of the following interests in 3 or 
more of the company’s total voting rights at 30 june 2012
 
percentage of 
voting rights and 
issued share 
capital
number of 
ordinary shares
gita investments limited 5082 178641428
mg investment management
limited 1233 43347803
audley capital advisors llp 746 26210650
legal  general investment
management limited 598 21060627
four capital partners limited 382 13425006
8 agm
this year’s agm will be held at our registered office at 1230pm on 
18 september 2012 the notice convening the meeting together  
with details of the special business to be considered and explanatory 
notes for each resolution is contained in a separate document to be 
sent to shareholders it will also be available on the company’s 
website wwwopgpowercom 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 centreshareholder circulars 45
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
9 employees
the average number of employees within the group as at 31 march 
2012 was 242 
10 audit information
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
11 auditors
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
12 additional information
articles of association
the following narrative summarises information relating to certain 
provisions in the company’s articles of association and applicable isle 
of man law concerning companies the companies act 2006 as 
amended by the isle of man companies amendment act 2009 the 
‘act’ this is a summary only and the relevant provisions of the act or 
the articles should be consulted if further information is required 
share capital structure
details of the issued share capital together with details of movements 
in the company’s issued share capital during the year are shown in 
note 16 to the consolidated financial statements 
the company has one class of ordinary share which carries no right  
to fixed income each share carries the right to one vote at general 
meetings of the company under its articles the directors have 
authority to issue on a nonpreemptive basis up to 15 of the 
company’s share capital in each financial year
there are no specific restrictions on the size of a holding nor on the 
transfer of shares which are both governed by the general provisions 
of the articles and prevailing legislation the directors are not aware  
of any agreements between the holders of the company’s shares  
that may result in restrictions on the transfer of securities or on voting 
rights no person has any special rights of control over the company’s 
share capital and all issued shares are fully paid
the company made no purchases of its own ordinary shares during 
the year 
a resolution will be proposed at the forthcoming agm seeking renewal 
of the shareholders’ approval to make market purchases of its own 
shares such authority will be exercised having regard to applicable 
guidelines of the investor protection committees
details of share schemes are set out in note 17 to the consolidated 
financial statements and in the directors’ remuneration report on 
page 40
powers of the directors
with regard to the appointment and replacement of directors the 
company is governed by its articles the act and related legislation 
the articles themselves may be amended by special resolution of  
the shareholders the powers of the directors are described in the 
corporate governance report on page 37
by order of the board
philip scales
company secretary
opg power ventures plc
ioma house
hope street
douglas
isle of man
im1 1ap
30 june 2012 opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
46
statement of directors’ responsibilities in respect of the accounts
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 opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
47
independent auditors’ report to the members of opg power ventures plc
we have audited the consolidated financial statements of opg power 
ventures plc for the year ended 31 march 2012 which comprise the 
consolidated statement of comprehensive income the consolidated 
statement of financial position the consolidated statement of 
changes in equity the consolidated and company 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 our engagement with them 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 on 
page 46 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 
company’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 
opinion on financial statements
in our opinion the 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 2012 and of their profit and loss for the year 
then ended
grant thornton
chartered accountants
third floor
exchange house
5458 athol street
douglas
isle of man
im1 1jd
30 june 2012 48
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
consolidated statement of comprehensive income
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
particulars notes 2012 2011
revenue 45253431 33147184 
cost of revenue 6 31347196 18669898
gross profit 13906235 14477286 
other income 7 1538242 2537869 
distribution cost 895006 865832
general and administrative expenses 6 5458387 3666390
operating profit 9091084 12482933 
financial costs 8 4823587 2647296
financial income 9 2808853 1326695 
loss on deconsolidation of subsidiaries 23 4815135 –
profitloss before tax 2261215 11162332 
tax expense 10 2044115 2408443
profitloss for the year attributable to 217100 8753889 
owners of the parent 251427 6227842 
noncontrolling interest 34327 2526047 
  217100 8753889
earnings per share 21 
basic earnings per share in pence 0072 2129 
diluted earnings per share in pence 0072  2093 
other comprehensive income 
reclassification on loss of control of subsidiaries 23 253343 –
availableforsale financial assets 
– reclassification to profit and loss on sale of availableforsale investments 255542 185459
– current year gainslosses on remeasurement 109483 255542
currency translation differences on translation of foreign operations 11261421 5076545
other comprehensive income 11368705 5146628
total comprehensive income for the year attributable to 11151605 3607261 
owners of the parent 11035084 1627114 
noncontrolling interest 116521 1980147 
  11151605 3607261 
see accompanying notes to the consolidated financial statements
the financial statements were authorised for issue by the board of directors on 30 june 2012 and were signed on behalf by
arvind gupta   v narayan swami
chief executive officer  chief financial officer 49
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
consolidated statement of financial position
as at 31 march 2012 
all amounts in £ unless otherwise stated
particulars notes 2012 2011
assets   
noncurrent   
property plant and equipment 11 93031022 73995296 
investments and other assets 12 2285430 6941814 
deferred tax asset 10 – 155512 
restricted cash 15 868996 1214699 
total noncurrent assets 96185448 82307321 
current   
inventories 14 5546740 5605523 
trade and other receivables 13 17405365 8576366 
cash and cash equivalents 15 37876393 71104280 
restricted cash 15 3712150 1080877 
current tax assets 48071 272105 
investments and other assets 12 52836729 45486243 
total current assets 117425448 132125394 
total assets 213610896 214432715 
equity and liabilities   
equity   
equity attributable to owners of the parent   
share capital 51671 51671 
share premium 124316524 124316524 
other components of equity 3256411 7803844 
retained earningsaccumulated deficit 10577591 9050027 
total 131689375 141222066 
noncontrolling interest 62371 9807809 
total equity 131751746 151029875
liabilities   
noncurrent   
borrowings 18 56055498 45254399 
trade and other payables 19 1396701 1231509 
deferred tax liability 10 1300658 849446 
total noncurrent liabilities 58752857 47335354 
current   
borrowings 18 14806900 5064797 
trade and other payables 19 7809652 10716961 
other liabilities 239259 241112 
current tax liabilities 250482 44615 
total current liabilities 23106293 16067485 
total liabilities 81859150 63402839 
total equity and liabilities 213610896 214432714
see accompanying notes to the consolidated financial statements
the financial statements were authorised for issue by the board of directors on 30 june 2012 and were signed on behalf by
arvind gupta   v narayan swami
chief executive officer  chief financial officer 50
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
consolidated statement of changes in equity
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
group
issued capital  
number of shares share capital share premium other reserves
foreign currency 
translation reserve retained earnings
total of  
parent equity
noncontrolling 
interest total equity
balance at 1 april 2011 351504795 51671 124316524 4614203 3189641 9050027 141222066 9807809 151029875 
transfers during the year   48146   48146 48146 –
employee sharebased payment options   1454247   1454247  1454247 
effect of loss of control of subsidiaries refer note 23   9580771 9580771
transactions with owners 351504795 51671 124316524 6116596 3189641 9050027 142724459 178892 142903351
profit for the year from operating activities     251427 251427 34327 217100
effect of loss of control of subsidiaries refer note 23   1281379 248101 1276137 253343 – 253343
currency translation differences    11177522  11177522 83899 11261421 
gainslosses on saleremeasurement of availableforsale financial assets   144354  144354 1705 146059
total comprehensive income for the year – – – 1137025 11425623 1527564 11035084 116521 11151605
balance at 31 march 2012 351504795 51671 124316524 4979571 8235982 10577591 131689375 62371 131751746 
balance at 1 april 2010 286989795 42187 66943323 3228892 7721433 2822185 80758020 7827662 88585682
issue of equity shares 64515000 9484 57373201    57382685 – 57382685 
employee sharebased payment options   1454247   1454247 – 1454247 
transactions with owners 351504795 51671 124316524 4683139 7721433 2822185 139594952 7827662 147422614 
profit for the year     6227842 6227842 2526047 8753889
currency translation differences    4531792 4531792 544753 5076545
gainslosses on saleremeasurement of availableforsale financial assets   68936  68936 1147 70083
total comprehensive income for the year – – – 68936 4531792 6227842 1627114 1980147 3607261 
balance at 31 march 2011 351504795 51671 124316524 4614203 3189641 9050027 141222066 9807809 151029875 
see accompanying notes to the consolidated financial statements 51
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
group
issued capital  
number of shares share capital share premium other reserves
foreign currency 
translation reserve retained earnings
total of  
parent equity
noncontrolling 
interest total equity
balance at 1 april 2011 351504795 51671 124316524 4614203 3189641 9050027 141222066 9807809 151029875 
transfers during the year   48146   48146 48146 –
employee sharebased payment options   1454247   1454247  1454247 
effect of loss of control of subsidiaries refer note 23   9580771 9580771
transactions with owners 351504795 51671 124316524 6116596 3189641 9050027 142724459 178892 142903351
profit for the year from operating activities     251427 251427 34327 217100
effect of loss of control of subsidiaries refer note 23   1281379 248101 1276137 253343 – 253343
currency translation differences    11177522  11177522 83899 11261421 
gainslosses on saleremeasurement of availableforsale financial assets   144354  144354 1705 146059
total comprehensive income for the year – – – 1137025 11425623 1527564 11035084 116521 11151605
balance at 31 march 2012 351504795 51671 124316524 4979571 8235982 10577591 131689375 62371 131751746 
balance at 1 april 2010 286989795 42187 66943323 3228892 7721433 2822185 80758020 7827662 88585682
issue of equity shares 64515000 9484 57373201    57382685 – 57382685 
employee sharebased payment options   1454247   1454247 – 1454247 
transactions with owners 351504795 51671 124316524 4683139 7721433 2822185 139594952 7827662 147422614 
profit for the year     6227842 6227842 2526047 8753889
currency translation differences    4531792 4531792 544753 5076545
gainslosses on saleremeasurement of availableforsale financial assets   68936  68936 1147 70083
total comprehensive income for the year – – – 68936 4531792 6227842 1627114 1980147 3607261 
balance at 31 march 2011 351504795 51671 124316524 4614203 3189641 9050027 141222066 9807809 151029875 
see accompanying notes to the consolidated financial statements 52
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
consolidated statement of cash flows 
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated 
particulars 2012 2011
cash flows from operating activities  
profitloss for the year before tax 2261215 11162331 
foreign exchange lossgain 130240 113052
financial expenses 4823587 2647296 
financial income 2648309 1326695
sharebased compensation costs 1454247 1454247 
depreciation 1397121 1208461 
loss on deconsolidation of subsidiaries 4815135 –
 12233237 15032588
movements in working capital  
increasedecrease in trade and other receivables 14047319 5706441
increasedecrease in inventories 1579425 3948601
increasedecrease in other current assets 1419697 2048059
increasedecrease in trade and other payables 5565387 5258094 
increasedecrease in other liabilities 1056506 2981158
cash used ingenerated from operations 4648082 5719475 
income taxes paid net of refunds 532088 1964628
net cash generated byused in operating activities 4115994 3754847 
   
cash flows from investing activities  
acquisition of property plant and equipment 71351424 19758114
finance income 2541533 782508 
dividend income 453787 544187 
movement in restricted cash 3013933 931303
salepurchase of investments net 2603909 3124948 
increasedecrease in land lease deposits – 2115283
net cash usedgenerated by investing activities 68766128 18353057
   
cash flows from financing activities  
proceeds from issue of ordinary shares – 57382685 
refund of application money –
proceeds from borrowings net 37122045 16985286 
interest paid 4823587 2647296 
net cash provided by financing activities 32298458 71720675 
   
net increasedecrease in cash and cash equivalents 32351676 57122465 
   
cash and cash equivalents at the beginning of the yearperiod 71104280 14168453 
effect of exchange rate changes on the balance of cash held in foreign currencies 643204 186638
impact on deconsolidation of subsidiaries note 23 233008 –
cash and cash equivalents at the end of the yearperiod 37876393 71104280 
see accompanying notes to the consolidated financial statements 53
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
1 corporate information
11 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 shortterm 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
12 statement of compliance 
the consolidated financial statements have been prepared in accordance with international financial reporting standards ‘ifrs’ and its 
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
13 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 im1 1ja the company’s equity shares are listed on the alternative investment market ‘aim’ of the london stock exchange 
the financial statements were approved by the board of directors on 30 june 2012
2 changes in accounting policies 
the group has adopted the following revisions and amendments to ias 24 – related party disclosures issued by the international accounting 
standards board which is relevant to and effective for the group’s financial statements for the annual period beginning 1 april 2011
ias 24 r introduced changes with respect to the definition of a related party which has been clarified to ensure all the relevant information is still 
being captured the group has already identified the related parties in a similar manner as suggested by the revised standard hence there 
was no impact on these financial statements
21 standards amendments and interpretations to existing standards that are not effective and have not been adopted early 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 eu as at 31 march 2012
standard or interpretation
effective for reporting periods 
starting on or after
ifrs 9 financial instruments – recognition and measurement 1 january 2015
ifrs 10 consolidated financial statements 1 january 2013
ifrs 11 joint arrangements 1 january 2013
ifrs 12 disclosure of interests in other entities 1 january 2013
ifrs 13 fair value measurement 1 january 2013
ias 1 presentation of items of other comprehensive income amendments to ias 1 1 july 2012
ias 12 deferred tax recovery of underlying assets amendments to ias 12 1 january 2012
ias 19 employee benefits revised 2011 1 january 2013
ias 27 separate financial statements 1 january 2013
ias 28 investments in associates and joint ventures 1 january 2013
the management is yet to assess the impact of ifrs 9 on the group’s consolidated financial statements however they do not expect to 
implement ifrs 9 until all of its chapters have been published and they 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
notes to the consolidated financial statements
for the year ended 31 march 2012
 
all amounts in £ unless otherwise stated 54
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
notes to the consolidated financial statements continued
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
3 summary of significant accounting policies
31 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 availableforsale financial assets measured at fair value the financial statements have been prepared on a going 
concern basis
the consolidated financial statements are presented in accordance with ias 1 presentation of financial statements revised 2007 and have 
been presented in great britain pound £ which is the functional and presentation currency of the company
32 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 2012
a subsidiary is defined as an entity controlled by the company control is achieved where the company has the power to govern the 
financial and operating policies of an entity so as to obtain benefits from its activities 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 intragroup balances income and expenses and any resulting unrealised gains arising from intragroup transactions are eliminated in full 
on consolidation 
noncontrolling 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 fromto minority interests in the group where there is no loss 
of control are accounted for as 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 reserveretained earnings’ within statement of changes in equity 
the practice of presenting stand alone accounts of the company has been dispensed with effective this reporting period given that the 
company is principally a holding company with no independent business income of its own and that the principal earnings of the group are 
derived from its subsidiaries in india
33 list of subsidiaries 
details of the group’s subsidiaries which are consolidated into the group’s consolidated financial statement are as follows
 voting right  economic interest
subsidiaries immediate parent
country of 
incorporation 2012 2011 2012 2011
caromia holdings limited ‘chl ’ opgpv cyprus 100 100 100 100
gita energy private limited ‘gepl ’ 
refer note below 
chl cyprus 100 100 100 100
gita holdings private limited ‘ghpl ’
1
 chl cyprus 100 100 100 100
opg power generation private limited
‘opgpg’
gepl and 
ghpl
india 7176 7176 99 99
opg power gujarat private limited
‘opgg’
2
gepl and 
ghpl
india 100 6590  100 99
opg renewable energy private limited
‘opgre’
3
gepl and 
ghpl
india 0 22 33 33
opg energy private limited ‘opge’
3
 opgpg india 0 2978 4422 4422
gita power and infrastructure private limited
‘gpipl ’ 
ghpl india 100 100 9822 9791
1 as of 10 february 2011 pursuant to agreement for assignment of debt between chl and opgpv the entire shares held in gepl and ghpl have been transferred by ‘opgpv’ to ‘chl’
2 partly paid equity shares in opgg have been forfeited and thereby the economic interest and voting rights of the gepl and ghpl together stand increased to 100
3 refer note 23 for deconsolidation of these subsidiaries 55
opg power ventures plc
annual report and accounts 2012
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corporate governance
financial statements
3 summary of significant accounting policies continued
34 foreign currency translation
the functional currency of the company is the great britain pound sterling £ the cypriot entities are an extension of the parent and pass 
through investment entities accordingly the functional currency of the subsidiaries 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 chargedcredited 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 general and administrative expenses within the 
profit or loss nonmonetary 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 nonmonetary 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
the great britain pound £indian rupee inr exchange rates used to translate the inr financial information into the presentation currency of 
great britain pound £ were as follows
particulars 2011–12 2010–11
closing rate at 31 march 8290 7260 
average rate for the year ended 31 march 7669 7096 
closing rate at 30 november 8116 –
average rate for the period ended 30 november 7492 –
35 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
36 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 andor 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 56
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notes to the consolidated financial statements continued
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
3 summary of significant accounting policies continued
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 for 
management’s assessment of the probability of future taxable income to utilise against deferred tax assets 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
37 financial instruments
financial assets and financial liabilities are measured initially at fair value adjusted by transactions costs except for financial assets and financial 
liabilities carried at fair value through profit or loss which are measured initially at fair value 
financial assets and financial liabilities are measured subsequently as described below
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
38 financial assets
for the purpose of subsequent measurement financial assets are classified into the following categories upon initial recognition 
 – loans and receivables and 
 – availableforsale 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 nonderivative 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 
availableforsale financial assets
availableforsale financial assets are nonderivative 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 availableforsale financial assets include mutual funds listed securities and equity 
instruments availableforsale financial assets are measured at fair value gains and losses are recognised in other comprehensive income and 
reported within the availableforsale 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 57
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3 summary of significant accounting policies continued
39 financial liabilities
the group’s financial liabilities include borrowings trade and other payables financial liabilities are measured subsequently at amortised cost 
using the effective interest method except for financial liabilities held for trading or designated at fair value through profit or loss that are carried 
subsequently at fair value with gains or losses recognised in profit or loss 
all interestrelated 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’
310 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 bid 
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
311 property plant and equipment
property plant and equipment are stated at cost net of accumulated depreciation andor impairment losses if any the cost includes 
expenditures that are directly attributable to property plant and equipment such as employee cost borrowing costs for longterm 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
the present value of the expected costs of decommissioning of the asset after its use is included in the costs of the respective asset if the 
recognition of the criteria for a provision is met 
land is not depreciated depreciation on other assets is computed on straightline basis over the useful life of the asset based on 
management’s estimate as follows
nature of asset useful life years
buildings 30–40
power stations 15–40
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 are reviewed at each financial year end and adjusted prospectively  
if appropriate
311 leases 
the determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at inception date 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 straightline basis over the lease term lease of land is 
classified separately and is amortised over the period of lease 58
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notes to the consolidated financial statements continued
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
3 summary of significant accounting policies continued
312 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
313 impairment of nonfinancial assets
the group assesses at each reporting date whether there is an indication that an asset may be impaired if any 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 cashgenerating 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 pretax 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 cgu 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 unless the asset is carried at the revalued 
amount in which case the reversal is treated as a revaluation increase
314 cash and cash equivalents
cash and cash equivalents in the statement of financial position comprise cash at banks and on hand and shortterm deposits
for the purpose of the consolidated cash flow statement cash and cash equivalents consist of cash and shortterm deposits net of restricted 
cash and outstanding bank overdrafts
315 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
316 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 
317 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 commitment that has resulted from past events for example product warranties granted legal disputes or 
onerous contracts 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  59
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3 summary of significant accounting policies continued
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
318 sharebased payments
the group operates equitysettled sharebased 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 sharebased payment are measured at their fair values where employees are 
rewarded using sharebased payments the fair values of employees’ services are 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 nonmarket vesting conditions for 
example profitability and sales growth targets and performance conditions 
all sharebased 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 nonmarket 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 
319 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 lumpsum 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 year the group has established an employees benefit trust ‘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 60
opg power ventures plc
annual report and accounts 2012
overview
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corporate governance
financial statements
notes to the consolidated financial statements continued
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
3 summary of significant accounting policies continued
320 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 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 nontaxable 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 
estimates and uncertainties
when preparing the financial statements management undertakes a number of judgements estimates and assumptions about recognition and 
measurement of assets liabilities income and expenses the actual results may differ from the judgements estimates and assumptions made 
by management and will seldom equal the estimated results information about significant judgements estimates and assumptions that have 
the most significant effect on recognition and measurement of assets liabilities income and expenses is provided below
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 36
 – estimation of fair value of acquired 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 
•	 other financial liabilities  
borrowings held by the group are measured at amortised cost except where designated at fair value through profit or loss further 
liabilities associated with financial guarantee contracts in the financial statements are initially measured at fair value and remeasured at 
each statement of financial position date see note 39 and note 18
 – impairment tests the determination of recoverable amounts of the cgus assessed in the annual impairment test requires the group to 
estimate of their fair value net of disposal costs as well as their value in use the assessment of value in use requires assumptions to be 
made with respect to the operating cash flows of the cgus as well as the discount rates
 – useful life of depreciable assets management reviews the useful lives of depreciable assets at each reporting date based on the expected 
utility of the assets to the group
 – provisions the group has currently provided for electricity tax based on demand received from the concerned authorities see note 6a 
 – uncollectability of trade receivables analysis of historical payment patterns customer concentrations customer creditworthiness and 
current economic trends if the financial condition of a customer deteriorates additional allowances may be required see note 13 61
opg power ventures plc
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financial statements
5 segment information
the group has adopted the ‘management approach’ in identifying the operating segments as outlined in ifrs 8 operating segments are 
reported in a manner consistent with the internal reporting provided to the chief operating decision maker the chief operating decision maker 
who is responsible for allocating resources and assessing performance of the operating segment has been identified as the steering committee 
that makes strategic decisions management has analysed the information that the chief operating decision maker reviews and concluded on 
the segment disclosure in identifying its operating segments management generally follows the group’s service lines which represent the 
generation of the power and other related services provided by the group the activities undertaken by the power generation segment 
includes sale of power and other related services the accounting policies used by the group for segment reporting are the same as those 
used for consolidated financial statements 
for management purposes the group is organised into only a single business unit of power generation and distribution of the same to 
customers there are no geographical segments as all revenues arise from india 
revenue on account of sale of power to one party amounts to £22237514 2010 £25790162
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
2012 2011
included in cost of revenue
cost of fuel consumed 19011365 14931913 
depreciation 1313202 1145380
other direct costs 11022629 2592605
total 31347196 18669898
other direct costs include electricity tax providedpaid during the year amounting to £928336 2011 £nil depreciation included general and 
administrative expenses amounting to £83919 2011 £63081
b employee benefit expenses forming part of general and administrative expenses are as follows
2012 2011
salaries and wages 1073043 781534 
employee benefit costs 117529 60083 
employee stock option 1454247 1454247 
total 2644819 2295864 
c auditor’s remuneration for audit services amounting to £45000 2011 £38900 is included in general and administrative expenses
d foreign exchange lossgain included in the general and administrative expensesother income is as follows
2012 2011
foreign exchange lossgain 130240 113052
total 130240 113052
7 other income
a other income comprises of
2012 2011
sale of coal – 206203
interest on overdue receivables 563902 –
compensation for loss of profit 370277 1888294
miscellaneous incomeexpense 604063 443372
total 1538242 2537869  62
opg power ventures plc
annual report and accounts 2012
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financial statements
notes to the consolidated financial statements continued
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
7 other income continued
the item ‘compensation for loss of profit’ consists of £370277 due to opgpg a subsidiary from the epc contractor for delay in guaranteed 
commissioning date of their 77 mw plant nonachievement of guaranteed performance parameters at the plant and consequent loss of 
revenue to opgpg this amount represents loss of profits which is reliably measurable as at the reporting date and has been recognised 
based on the terms and conditions as specified in the epc contract and on acceptance of claim by the contractor
interest on overdue receivables consists of interest charged to a customer as per the terms of the agreement on account delay in payment 
miscellaneous income includes commission receivable of £225000 2011 £nil
8 finance costs
finance costs comprises of
2012 2011
interest expenses on loans and borrowings 4068516 2271354
loss on disposal of financial instruments 465546 255542
other finance costs 289525 120400
total 4823587 2647296
interest expenses on loans and borrowings pertains to interest expenses on financial liability at an amortised cost of £4068516 2011 £2271354 
in the consolidated financial statement 
9 finance income
the finance income comprises of
2012 2011
interest income
– bank deposits 460114 239872
– loans and receivables 66072 162340
dividend income 305505 544187
other finance income 1977162 372106
unwinding of discount on security deposits – 8190
total 2808853 1326695
other finance income includes the income earned by opgpv on the investment of its funds raised by way of further issue during the previous year
10 tax expenseincome
the major components of income tax expense for the years ended 31 march 2012 and 2011 are as follows 
consolidated statement of changes in equity 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 
2012 and 2011 is as follows
2012 2011
accounting profit before taxes 2261215 11162332
loss on deconsolidation of subsidiaries 4815135 –
enacted tax rates 32445 32445
tax on profit at enacted tax rate 2295922 3621619
differences on account mat rate 582406 1596807
items taxed at zero 253998 417480
others 76601 33849
actual tax expense 2044115 2408443 63
opg power ventures plc
annual report and accounts 2012
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corporate governance
financial statements
10 tax expenseincome continued
consolidated statement of comprehensive income
2012 2011
current tax 940344 2105976
deferred tax 1103771 302467
tax expense reported in the statement of comprehensive income 2044115 2408443
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 company’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 the 15 years from the date of 
commencement of operations
the group is subject to the provisions of minimum alternate tax ‘mat’ under the indian income taxes for the year ended 31 march 2012 and 
2011 accordingly the group calculated the tax liability for current taxes in india after considering mat 
deferred income tax for the group at 31 march 2012 and 2011 relates to the following
2012 2011
deferred income tax assets
lease transactions and others 48961 30294
marktomarket on availableforsale financial assets – 125218
gratuity 4571 –
total 53532 155512
deferred income tax liabilities
difference in depreciation on property plant and equipment 1353007 849446
marktomarket on availableforsale financial assets 1183
total 1354190 849446
deferred income tax liabilities net 1300658
movement in temporary differences during the year 
particulars
as at 
1 april 2011
recognised in 
income statement
recognised 
in equity
translation 
adjustment
as at 
31 march 2012
property plant and equipment and others 849446 503561 – – 1353007
lease transactions 30294 18667 – – 48961
gratuity – 4571 – – 4571
marktomarket gainloss on availableforsale financial assets 125218 – 126401 – 1183
693934 480323 126401 – 1300658
particulars
as at 
1 april 2010
recognised in 
income statement
recognised 
in equity
translation 
adjustment
as at 
31 march 2011
property plant and equipment and others 514235 302467 – 2450 819152
marktomarket gainloss on availableforsale financial assets 51505 73713 – 125218
462730 302467 73713 2450 693934
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 64
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
notes to the consolidated financial statements continued
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
10 tax expenseincome continued
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 company 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 2012 and 31 march 2011 there was no recognised deferred tax liability for taxes that would be payable on the unremitted 
earnings of certain of the group’s subsidiaries the group has determined that undistributed profits of its subsidiaries will not be distributed in 
the foreseeable future
11 property plant and equipment
the property plant and equipment comprises of
a gross block
particulars land and buildings power stations
other plant  
and equipment vehicles
assets under 
construction total 
as at 1 april 2010 9428735 8271204 94894 142991 47459624 65397448
– additions 444197 42059353 49460 71375 9635644 52260029
– disposals 53270 – – – 35578462 35631732
– exchange adjustments 614406 538929 6233 9318 3092620 4261506
as at 31 march 2011 9205256 49791628 138121 205048 18424186 77764239 
as at 1 april 2011 9205256 49791628 138121 205048 18424186 77764239
– additions 1064278 1431849 214938 122146 47521538 50354749
– deconsolidation refer note 23 986475 9013743 58777 – 10672839 20731834
– disposals – 26541 – – – 26541
– exchange adjustments 1202662 6129605 9802 34624 5318058 12694750
as at 31 march 2012 8080397 36053588 284480 292570 49954827 94665863 
b accumulated depreciation 
particulars land and buildings power stations
other plant  
and equipment vehicles
assets under 
construction total
as at 1 april 2010 207803 2478926 42383 39076 – 2768188
– charge for the year 34166 1111445 27228 35580 – 1208419
– disposals – – – – – –
– exchange adjustments 14313 186610 3393 3350 – 207666
as at 31 march 2011 227656 3403761 66218 71306 – 3768941 
as at 1 april 2011 227656 3403761 66218 71306 – 3768941
– charge for the year 28843 1291215 30870 46194 – 1397122
– deconsolidation refer note 23 223623 2773033 24009 – – 3020665
– disposals – – – – – –
– exchange adjustments 26269 467030 6285 10973 – 510557
as at 31 march 2012 6607 1454913 66794 106527 – 1634841  65
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financial statements
11 property plant and equipment continued
c net block
particulars land and buildings power stations
other plant  
and equipment vehicles
assets under 
construction total
as at 31 march 2012 8073790 34598675 217686 186043 49954827 93031022 
as at 31 march 2011 8977600 46387866 71902 133742 18424186 73995296
the net book value of land and buildings block comprises of
2012 2011
freehold 7440351 8203467
buildings 633439 774133
total 8073790 8977600
property plant and equipment with a carrying amount of £42672465 2011 £55365466 is subject to security restrictions refer note 18
an amount of £3407430 previous year £1701620 pertaining to interest on borrowings was capitalised as the funds were deployed for the 
construction of qualifying assets
12 investments and other assets
2012 2011
a current
availableforsale financial assets 1393866 8851675 
prepayments
– advance to suppliers 958668 2377033
– capital advances 48637313 31286228
– other advances 1846882 2971307
total 52836729 45486243
b noncurrent 
availableforsale financial assets refer note 23 1381762 –
prepayments 813618 5108701
loans and receivables
– lease deposits 77127 1065537
– other advances 12923 767576
total 2285430 6941814
availableforsale financial asset 
the current portion of availableforsale financial asset represents the group’s 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 
the noncurrent portion of availableforsale financial asset represents the group’s investments in opge and opgre have been fair valued 
and the share of the group has been determined and disclosed as availableforsale classified under noncurrent the management has not 
contemplated any sale of these investments and has not explored any options for the disposal of the same 
prepayments current
advances to suppliers include the amounts paid as advance for supply of fuel to the group other advances of the group primarily includes 
additional import duty on imported coal paid under protest amounting to £754442 2011 £211459 capital advances comprise of payment 
made to epc contractors for construction of assets and advances paid for purchase of capital equipment the management expects to realise 
these in the next one year 66
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financial statements
notes to the consolidated financial statements continued
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
13 trade and other receivables
2012 2011
current
trade receivables 17102878 6518201
unbilled revenues 139114 99425
other receivables 163373 1958740 
total 17405365 8576366
trade receivables are generally due within 14 days terms and are therefore shortterm and the carrying values are considered a reasonable 
approximation of fair value out of the above £17405365 2011 £8576366 has been pledged for security as borrowings refer note 18 
as at 31 march 2012 trade receivables of £60314 2011 £nil were collectively impaired and provided for 
the age analysis of the overdue trade receivables is as follows
past due but not impaired
total
neither past due 
nor impaired  90 days 90–180 days  180 days
2012 17102878 3246760 6739233 6517222 599663
2011 6518201 5376841 392754 142336 606270 
refer also to note 25 for details of credit risk
the movement in provision for trade receivables is as follows
opening balance
provision  
for the year
reversal of 
provision closing balance
2012 – 60314 – 60314
2011 – – – –
14 inventories
2012 2011
coal and fuel 5068904 5368042
stores and spares 477836 237481
total 5546740 5605523 
out of the above £5546740 2011 £4708191 has been pledged for security as borrowings refer note 18
15 cash and cash equivalents
cash and shortterm deposits comprise of the following
2012 2011
cash at banks and on hand 34023639 69884386
shortterm deposits 3852754 1219894
total 37876393 71104280
shortterm deposits are made for varying periods depending on the immediate cash requirements of the group they are recoverable  
on demand
restricted cash represents deposits maturing between 3 to 12 months amounting to £3712150 2011 £1080877 and maturing after 12 
months amounting to £868996 2011 £1214699 which have been pledged by the group in order to fulfil collateral requirements refer note 
18  67
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corporate governance
financial statements
16 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 351504795 equity shares 2011 351504795 at par value of £0000147  
2011 £0000147 per share amounting to £51671 2011 £51671
the company has issued share capital at par value of £51671 £0000147 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 
translation reserve is used to record the exchange differences arising from the translation of the financial statements of the foreign subsidiaries
other reserves represent the difference between the consideration paid and the adjustment to net assets on change of controlling interest 
without change in control other reserves also include any costs related with share options granted and gainlosses on remeasurement of 
availableforsale financial assets
retained earnings include all current and prior period results as disclosed in the statement of comprehensive income less dividend distribution 
17 sharebased 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 £100 for three consecutive business days
the related expense has been amortised over the estimated vesting period of 421 years expected completion of the kutch plant and an 
expense amounting to £1454247 2011 £1454247 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 2012 2011
at 1 april 22524234 22524234
granted – – 
forfeited – – 
exercised – – 
expired – – 
at 31 march 22524234 22524234
assumptions on valuation of options
the weighted average price fair value of options granted during the previous period determined using the blackscholes valuation model was 
£028 per option the significant inputs into the model were weighted average share price of £066 2011 at the grant date exercise price 
shown above volatility of £060 2011 £060 nil dividend yield 2011 nil an expected option life of 421 years 2011 421 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 68
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corporate governance
financial statements
notes to the consolidated financial statements continued
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
18 borrowings
the borrowings comprise of the following
interest rate  
range  final maturity 2012 2011
longterm loans 1230–1462 march 2023 56055498 45254399 
shortterm loans 1230–1462 march 2013 2908457 3367529 
cash credit and working capital arrangements 3311968 1294930
lc bills discounting and buyers’ credit facility march 2013 8586475 402338 
total 70862398 50319196
total debt of £70862398 2011 £50319196 is secured as follows
 – financial liabilities are measured at amortised cost of the group 
 – the longterm loans taken by the group are fully secured on the property plant and other movable current assets of subsidiaries which 
have availed such loans all the loans are personally guaranteed by a director
 – the shortterm loan and cash credits taken by the group are secured against hypothecation of current assets and in certain cases by 
deposits and margin money as collateral 
 – lc bills discounting and buyers’ credit facility is 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 
longterm ‘project finance’ loans contain certain restrictive 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 restrictive 
covenants primarily requiring the group to maintain certain financial metrics as of 31 march 2012 the group has met all the relevant covenants 
the fair value of borrowings at 31 march 2012 was £70862398 2011 £50319196 the fair values have been calculated by discounting 
cash flows at prevailing interest rates
the borrowings mature as follows
2012 2011
current liabilities
amounts falling due within one year 14806900 5064797 
noncurrent liabilities
amounts falling due after one year but not more than five years 37336198 24694855 
amounts falling due in more than five years 18719300 20559544 
total 70862398 50319196 
19 trade and other payables
2012 2011
current
trade payables 7229514 9499104
creditors for capital goods 434913 314977
other payables 145225 902880
total 7809652 10716961 
noncurrent
trade payables 1396701 1231509
total 1396701 1231509
with the exception of certain trade payables all amounts are shortterm
 – trade payables are noninterest bearing and are normally settled on 45 days terms
 – creditors for capital goods are noninterest bearing and are usually settled within a year
 – other payables include provision for gratuity and other provision for expenses
 – noncurrent trade payables comprises retention money which will be settled after completion and successful installation of the projects 69
opg power ventures plc
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corporate governance
financial statements
20 related party transactions
where control exists
name of the party nature of relationship
gita investments limited ultimate parent
caromia holdings limited subsidiary
gita energy private limited subsidiary
gita holdings private limited subsidiary
opg power generation private limited subsidiary
opg power gujarat private limited subsidiary
opg renewable energy private limited subsidiary up to 30 november 2011 
opg energy private limited subsidiary up to 30 november 2011 
gita power and infrastructure private limited subsidiary
key management personnel
name of the personnel nature of relationship
arvind gupta chief executive officer
v narayan swami chief financial officer
munish gupta chairman
martin gatto director
ravi gupta director
michael grasby director
related parties with whom the group had transactions during the period
name of the related party nature of relationship
sri hari vallabha enterprises  investments p limited entity in which key management personnel has controlsignificant influence
dhanvarsha enterprises  investments private limited entity in which key management personnel has controlsignificant influence
goodfaith vinmay p limited entity over which key management personnel exercises controlsignificant 
influence through relatives
salem food products limited entity in which key management personnel has controlsignificant influence
sri rukmani rolling mill private limited entity in which key management personnel has controlsignificant influence
kanishk steel industries limited entity in which key management personnel has controlsignificant influence
gita energy  generation private limited entity in which key management personnel has controlsignificant influence
powerserve support limited entity in which key management personnel has controlsignificant influence
gita devi relative of key management personnel
rajesh gupta relative of key management personnel
ravi gupta relative of key management personnel
avantika gupta relative of key management personnel 70
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financial statements
notes to the consolidated financial statements continued
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
20 related party transactions continued
name of the party 2012 2011 
summary of transactions with related parties
kanishk steel industries limited
a sharing of power 692091 495323 
b cost of power generated – 24607 
c lease deposit – 1308553 
d lease rent paid – 148478 
e reimbursement of expenses – 10851
f sale of coal 310104 –
g purchase of raw material 5616 –
salem food products limited
a sharing of power – 23757 
b interest received 54123 66130
sri rukmani rolling mill private limited
a sharing of power – 35469 
b sale of coal – 1889
gita devi
a rent paid – – 
b reimbursement of expenses – 1043
avantika gupta
a remuneration 32036 25367
gita energy  generation private limited
a advance paid – 2403604
b reimbursement of expenses 1076 –
powerserve support limited
a consultancy fees 31863 –
opg renewable energy private limited
a sale of coal 21338 –
name of the party 2012 2011 
summary of balances with related parties
salem food products limited
a loan outstanding – 759494 
b trade and other receivables – –
kanishk steel industries limited
a trade and other receivables 286872 331769 
b lease deposit outstanding – 4611201
sri rukmani rolling mill private limited
a trade and other receivables 7197 28028 
opg renewable energy private limited
a trade and other receivables 224527 –
outstanding balances at the yearend are unsecured and interestbearing in case of loans that are repayable on demand the interest rates 
charged closely approximate to the market rates there have been no guarantees provided or received for any related party receivables or 
payables for the year ended 31 march 2012 the group has not recorded any impairment of receivables relating to amounts owed by related 
parties 2011 £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 71
opg power ventures plc
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corporate governance
financial statements
21 earnings per share
both the basic and diluted eps have been calculated using the profit attributable to shareholders of the parent company as the numerator no 
adjustments to profit were necessary in 2011 or 2012
the weighted average number of shares for the purposes of diluted eps can be reconciled to the weighted average number of ordinary shares 
used in the calculation of basic eps as follows
particulars 2012 2011
weighted average number of shares used in basic eps 351504795 292469151
shares deemed to be issued for no consideration in respect of sharebased payments 638339 5104499
weighted average number of shares used in diluted eps 352143134 297573650
22 director’s remunerationkey management personnel
name of directors 2012 2011
arvind gupta 156474 169109
v narayan swami 46942 50734
martin gatto 25000 25000
michael grasby 25000 25000
munish gupta 25000 25000
ravi gupta 25000 25000
total 303416 319843
the above amounts relate to shortterm benefits there are no longterm benefits and termination benefits which are payable to the key 
management personnel
23 loss on deconsolidation of subsidiaries
in the previous year pursuant to the voting rights agreement entered by gepl with tamil nadu property developers limited ‘tnpdl’ and 
salem food products limited ‘sfpl’ and opgpg with sonal vyapar limited ‘svl’ and tnpdl hereinafter tnpdl sfpl and svl are 
collectively referred as ‘investors’ dated 12 may 2008 and 26 april 2008 respectively the investors agreed that in consideration of gepl 
agreeing to subscribe for shares in opgre and opgpg agreeing to subscribe for shares in opge the investors will exercise all voting rights in 
accordance of the directions of gepl and opgpg the total voting rights held by the investors in opgre and opge amount respectively to 
45 and 2159 further the investors had also appointed gepl and opgpg as the lawful attorneys to exercise their voting rights therefore 
the combination of the directly held interests together with the investors voting with the group had the effect that the group controlled a 
majority of voting rights in opgre and opge accordingly these companies were considered to be subsidiaries of the group until the expiry of 
the agreement on 30 november 2011
the management determined not to exercise control over the operations of opgre and opge beyond that date and has pursuant to a voting 
rights agreement entered on 1 december 2011 by gepl ghpl and opgpg hereinafter referred as ‘shareholders’ with tnpdl the 
shareholders have agreed to exercise their voting rights in accordance with the directions of tnpdl in the context of the expiry of the voting 
rights hitherto available from the investors the shareholders have thus extended voting support to tnpdl to provide for appropriate 
management of the company also the group withdrew its nominees from the offices held in the respective companies effective 1 december 
2011 there was no consideration that was received and these events resulted in loss of control and significant influence over opgre and 
opge and effective 1 december 2011 the group’s interests in the said companies are being accounted as investments 72
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financial statements
notes to the consolidated financial statements continued
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
23 loss on deconsolidation of subsidiaries continued
accordingly the group has derecognised the carrying value of assets liabilities and noncontrolling interest of the former subsidiaries and has 
recognised the fair value of the retained investments at the date when control is lost further the group has reclassified to profit and loss such 
amounts pertaining to these erstwhile subsidiaries that were earlier recognised through other comprehensive income and has accounted for 
the resulting difference as loss attributable to the group at the date of loss of control the carrying amount of the subsidiaries’ net assets the 
fair valuation and the resultant impact on the loss of control are as follows
particulars opgre opge total
fair value as certified by independent valuers – 3124744 3124744
consideration received – – – 
fair value of retained noncontrolling investment – 1381762 1381762
total a – 1381762 1381762
total assets 7520744 32183730 39704474
total liabilities 5671332 18002130 23673462
net worth 1849412 14181600 16031012
noncontrolling interest on date of loss of control 1253311 8327461 9580772
net assets attributable to the group b 596101 5854139 6450240
adjustment required to carrying value on deconsolidation b–a 596101 4472377 5068478
recycle from other comprehensive income
revaluation reserve 2076 3166 5242 
translation reserve 20599 227502 248101 
net charge on disposal effecting the group 573426 4241709 4815135
further the negative goodwill arising from the original investment which was recognised in equity at the time of acquisition has been dealt with 
under equity
effect of disposal on the statement of cash flows of the group 
particulars total 
property plant and equipment net 7011772 
investment and other assets noncurrent 9249940 
deferred tax asset 96139 
restricted cash 221004 
investment and other assets current 7829566 
trade and other receivables 3171602 
inventories 842089 
current tax assets net 30894 
borrowings 7396057
deferred tax liabilities 484831
accounts payable 1380839
current tax liabilities net 6421
other liabilities 4987310
net assets 14197548 
equity 14430556 
consideration received –
cash and cash equivalents disposed off 233008 
net cash outflow 233008  73
opg power ventures plc
annual report and accounts 2012
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business review
corporate governance
financial statements
24 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 include contingent rentals
noncancellable operating lease rentals are payable as follows
2012 2011
not later than one year 33304 339703
later than one year and not later than five years 133215 1358810
later than five years 647098 2813221
total 813617 4511734
during the year ended 31 march 2012 £36001 2011 £339703 was recognised as an expense in the statement of comprehensive income 
in respect of operating leases
capital commitments
during the year ended 31 march 2012 the group entered into a contract to purchase property plant and equipment for £100485417  
2011 £92009451 
guarantees
a letter of credit and bank guarantee provided by the banker on behalf of the group are as disclosed below
particulars
as at 
31 march 2012
as at 
31 march 2011
letter of credit 3837061 9185515
bank guarantee 4597552 3293417
25 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 shortterm deposits that arise directly from its operations the group also holds availableforsale investments 
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 review and agree on 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 and availableforsale investments 
the sensitivity analysis in the following sections relate to the position as at 31 march 2012 and 31 march 2011
the following assumption has been made in calculating the sensitivity analysis
 – 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 floating rate of borrowings held at 31 march 2012 all other variables being held constant these changes are 
considered to be reasonably possible based on observation of current market conditions 74
opg power ventures plc
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overview
business review
corporate governance
financial statements
notes to the consolidated financial statements continued
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
25 financial risk management objectives and policies continued
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 longterm debt obligations with 
floating interest rates 
at 31 march 2012 and 31 march 2011 the group had no interest rate derivatives
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 2012 would decrease or increase by £243249 2011 £143355 increasedecrease in interest rates would have the same impact 
on the group’s equity
price risk
price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market equity rates the 
group’s exposure to the risk of changes in market equity prices relates primarily to the group’s availableforsale investments the analysis is 
based on the assumption that the equity indexes had increased by 10 with all other variables held constant and all the entity’s equity 
instruments moved according to the historical correlation with the index the maximum impact of increases in the investment on the entity’s 
posttax profit for the year is £139387 2011 £885168 
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 pound £ a majority of the group’s assets are located in india where the 
indian rupee is the functional currency for its subsidiaries currency exposures also exist in the nature of capital expenditure and services 
denominated in currencies other than the indian rupee
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 31 march 2012 as at 31 march 2011
currency closing rate
effect of 10 
strengthening of 
£ on net earnings closing rate
effect of 10 
strengthening of  
£ on net earnings
united states dollar usd 5088 847894 4529 742124
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 shortterm 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 £63452199 
2011 £97769710 
the group’ s substantial supply of power is to the electricity departments of the government where the group has assessed the credit risk as low 
and the group has contractual rights to charge interest on overdue receivables however the group has exposure to credit risk from a limited 
customer group 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 and 
other shortterm financial assets is considered negligible since the counterparties are reputable banks with high quality external credit ratings 
the group’s maximum exposure for financial guarantees is noted in note 24 
the group’s management believes that all the above financial assets except as mentioned in note 12 and 13 are not impaired for each of the 
reporting dates under review and are of good credit quality  75
opg power ventures plc
annual report and accounts 2012
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corporate governance
financial statements
25 financial risk management objectives and policies continued
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 longterm financial liabilities as 
well as cashoutflows due in daytoday business liquidity needs are monitored in various time bands on a daytoday and weektoweek basis 
as well as on the basis of a rolling 90day projection longterm liquidity needs for a 90day and a 30day lookout period are identified monthly 
the group maintains cash and marketable securities to meet its liquidity requirements for up to 60day periods funding for longterm liquidity 
needs is additionally secured by an adequate amount of committed credit facilities and the ability to sell longterm financial assets 
the following is an analysis of the group contractual undiscounted cash flows payable under financial liabilities at 31 march 2012
current noncurrent
on demand within 12 months 1–5 years later than 5 years total
borrowings 14420697 67125057 13903635 95449389
trade and other payables 7809652 1396701 – 9206353
other current liabilities 239259 – – 239259
total 22469608 68521758 13903635 104895001
capital management
capital includes equity attributable to the equity holders of the parent and debt 
the primary objective of the group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order 
to support its business and maximise shareholder value objectives include among others
 – ensure group’s ability to meet both its longterm and shortterm capital needs as a going concern and
 – to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk 
no changes were made in the objectives policies or processes during the years ended 31 march 2012 and 2011
the group maintains a mixture of cash and cash equivalents longterm debt and shortterm committed facilities that are designed to ensure 
the group has sufficient available funds for business requirements
the subsidiaries in the group when engaged in the business of captive power generation were subject to statutory requirement of maintaining 
the captive consumers’ equity at 26 of the total equity apart from the aforementioned requirement there are no other imposed capital 
requirements on group or entities whether statutory or otherwise
the capital for the reporting periods under review is summarised as follows
2012 2011
total equity 131751746 151029875
less cash and cash equivalents 37876393 71104280
capital 93875353 79925595
total equity 131751746 151029875
add borrowings including buyer’s credit 70862398 50319196
overall financing 202614144 201349071
capital to overall financing ratio 046 040
the group’s goal in capital management is to maintain a capitaltooverall financing structure ratio as low as possible  76
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
notes to the consolidated financial statements continued
for the year ended 31 march 2012 
all amounts in £ unless otherwise stated
25 financial risk management objectives and policies continued
the group sets the amount of capital in proportion to its overall financing structure ie equity and financial liabilities the group manages the 
capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying 
assets in order to maintain or adjust the capital structure the group may adjust the amount of dividends paid to shareholders return capital to 
shareholders issue new shares or sell assets to reduce debt 
26 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
2012 2011 2012 2011
financial assets
cash and cash equivalents
1
37876393 71104280 37876393 71104280
availableforsale quoted instruments
4
2775628 8851675 2775628 8851675
restricted cash 4581146 2295575 4581146 2295575
current trade and other receivables
1
17405365 8576366 17405365 8576366
noncurrent trade and other receivables
2
903669 6941814 903669 6941814
63542199 97769710 63542199 97769710
financial liabilities
longterm ‘project finance’ loans
3
56055498 45254398 56055498 45254398 
shortterm loans
1
6220425 4662459 6220425 4662459
lc bill discounting and buyers’ credit facility
1
8586475 402338 8586475 402338
current trade and other payables
1
7374739 10401984 7374739 10401984
noncurrent trade and other payables
3
1396701 1231509 1396701 1231509
79633838 61952689 79633838 61952689
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 shortterm deposits trade receivables trade payables and other borrowings like shortterm loans current liabilities approximate their carrying amounts largely due to the 
shortterm maturities of these instruments 
2 longterm loans and receivables and trade receivables are evaluated by the group based on parameters such as interest rates individual creditworthiness of the customer and the 
risk characteristics of the financed project as of 31 march 2012 the carrying amounts of such receivables net of allowances approximate their fair values 
3 the fair value of loans from banks and other financial indebtedness financial liabilities at fair value through profit or loss as well as other noncurrent financial liabilities is estimated by 
discounting future cash flows using rates currently available for debt or similar terms and remaining maturities
4 fair value of availableforsale instruments are derived from quoted market prices in active markets for investments retained in opge and opgre the fair value is based on the 
report from independent valuers 77
opg power ventures plc
annual report and accounts 2012
overview
business review
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financial statements
26 summary of financial assets and liabilities by category and their fair values continued
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 ie as prices or indirectly ie 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
financial assets at fvtpl
nonderivative financial assets held for trading
availableforsale financial assets
unquoted securities 1393866 – 1381759 2775625
quoted securities – – – –
total 1393866 – 1381759 2775625
there were no transfers between level 1 and 2 in the period
approved by the board of directors on 30 june 2012 and signed on behalf by
arvind gupta   v narayan swami
chief executive officer  chief financial officer 78
opg power ventures plc
annual report and accounts 2012
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financial statements
corporate directory
nominated advisor and broker
cenkos securities plc
678 tokenhouse yard
london
ec2r 7as
financial pr
tavistock communications
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ec2a 7as
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ioma fund and investment management limited
ioma house
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auditors
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legal advisors
dougherty quinn
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opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
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
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 government of india
great britain pound sterling or £pence pounds or sterlingpence 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
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
lse london stock exchange plc
mou memorandum of understanding
mw mega watt
mwh mega watt hour
om operating and management
plf plant load factor
ppa power purchase agreement
psa power supply agreement
roe return on equity
rupeesinr or rs indian rupee the lawful currency of india
seb state electricity board
spv special purpose vehicle 
state state of india
the code the uk corporate governance code issued by the financial reporting council
ukunited kingdom united kingdom of great britain and northern ireland
ususd or  us dollars the lawful currency of the us 80
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
notes 01 highlights
02 our operations and projects
04 market overview
06 business model
08 key performance indicators
10 chairman’s statement
36 corporate governance 
40 directors’ remuneration report
44  dir ectors’ report
46  statement of directors’ responsibilities in respect of the accounts
12 chief executive’s statement
16 maximising opportunity
18 continuous supply
20 strategic locations
22 operational review
24 principal risks
26 financial review
30 responsible growth
34 board of directors
47  independent auditors’ report to the members of opg power ventures plc
48  consolidated statement of comprehensive income
49  consolidated statement of financial position
50  consolidated statement of changes in equity
52  consolidated statement of cash flows
53  notes to the consolidated financial statements
78 corporate directory
79 definitions and glossary
overview corporate governance
business review financial statements
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 aimopg opg power ventures plc annual report and accounts 2012
delivery and growth
opg power ventures plc
annual report and accounts 2012
wwwopgpowercom
india 
opg power ventures plc
no 6 sardar patel road
guindy
chennai – 600 032
india
t 91 44 4291 1234 228 
isle of man 
opg power ventures plc
ioma house hope street
douglas isle of man
im1 1ap
t 44 0 1624 681200


Summary:
 10
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
“ the emphasis on accelerated development and delivery 
continues both at chennai and gujarat with this largely 
brownfield expansion portfolio being increasingly derisked 
in the light of what we see as structural and beneficial 
changes taking place with regard to power sector pricing in 
the country we are confident that the group’s differentiated 
and profitable business model will increasingly contribute to 
build superior shareholder value”
chairman’s statement
building on our track record
we benefited during the year from a strong full year contribution from 
the chennai i 77 mw plant as we forged ahead with our projects 
under construction
view of chennai i right and chennai ii left 11
opg power ventures plc
annual report and accounts 2012
overview
business review
corporate governance
financial statements
i am pleased to report that in one of the most difficult 
trading environments the indian power sector has 
witnessed since private sector participation began nearly 
20 years ago the company has made considerable 
progress in advancing its projects and operations
we achieved revenue of £453m compared with £331m 
in 2010–11 whilst preexceptional earnings per share was 
1705 pence our business model continues to achieve 
average tariffs ahead of our competition this has 
delivered margins that are amongst the highest amongst 
independent indian electricity generators
there has been much talk of coal availability and the 
impact that a shortage could have on the operation and 
development of large new plants our plants are smaller 
in scale and are designed to be flexible and profitable 
under a variety of operating conditions and using various 
quality fuels coal availability was not a problem for opg 
as linkage commitments were met and other quantities 
were imported at comparable cost we expect this to 
continue to be a distinguishing feature of our business in 
the longterm
all our projects have progressed during the year 
specifically we accelerated chennai ii which is to be 
commissioned shortly and announced the addition of 
another 80 mw unit chennai iv which is also currently 
ahead of schedule our ability to fund internally the  
equity of this latest project reflects our focus on returns 
and cash generation in due course we shall have 
approximately 400 mw of capacity at the chennai site 
the year also saw progress at the 300 mw gujarat  
project although the project has faced some local 
objections i referred in my report last year to the 
constant testing of approval processes in a democratic 
country – environmental clearances for the gujarat 
project were confirmed by the national green tribunal 
but nevertheless the company has elected to go the 
extra mile by adopting aircooled condensers we believe 
this eliminates the basis for any of the claims that have 
been made against the project on environmental 
considerations
opg hopes to benefit from shortage in supply of reliable 
power in india the 11th five year plan has now ended 
and around two thirds of the anticipated capacity during 
that period was actually delivered the demand outlook 
for power in india has its foundation in the government’s 
desired economic growth for the country of 
approximately 10 pa the year witnessed high interest 
rates and a weak currency against the us dollar leading 
to bottlenecks in infrastructure financing and 
development particularly for large projects the sort that 
an emerging country such as india acutely needs to 
support anything close to its targeted growth level 
whilst your company has maintained its hallmark fuel 
flexibility it is encouraging to see the indian government 
responding to the country’s shortage of domestic  
coal supplies our hope is that this focus will persist 
furthermore there has been a centralised push to 
address the ailing health of some of the state electricity 
boards as part of reform of the sector tamil nadu should 
be a beneficiary of this with tariff rises of over 35 and 
fuel surcharge introduced – we expect to see some 
benefit of this flow through to the company these 
events and trends suggest an improving marketplace  
for us to operate in compared with the poor conditions 
last year
i would like to conclude by thanking the management 
and its dedicated team for their commitment during a 
difficult year progressing all projects and being profitable 
in this environment is no mean achievement with our 
team’s continuing enthusiasm i remain confident of the 
company’s bright future
m c gupta
30 june 2012