opg power ventures plc annual report and accounts 2011
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for growth
opg power ventures plc
annual report and accounts 2011 
wwwopgpower com
opg power ventures plc
117 sir p s sivasamy salai
st ebba’s avenue
mylapore
chennai 600 004
india
t 910 44 4291121442911222
f 910 44 42911209
e infoopgpowerorg
registered office
ioma house
hope street
douglas
isle of man 
im1 1ap 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 aim
overview
01 highlights
02 our markets
04 our operations and projects
06 our strategy and kpis
08 capacity growth profile
10 chairman’s statement
business review
12 principal risks
14 chief executive’s statement
16 operational review
20  financial review
22 responsible growth
24 board of directors
corporate governance 
26 corporate governance 
30 directors’ remuneration report
34  directors’ report
36  statement of directors’ responsibilities  
in respect of the accounts
financial statements
37  independent auditors’ report to the 
members of opg power ventures plc
38  consolidated and company statement  
of comprehensive income
39  consolidated and company statement  
of financial position
40  consolidated statement of changes  
in equity
42 company statement of changes in equity
44  consolidated and company statement of 
cash flows
45  notes to the consolidated and company 
financial statements
67 corporate directory
68 definitions and glossary
certain statements included in this annual report and accounts contain forwardlooking information concerning the group’s 
strategy operations financial performance or condition outlook growth opportunities or circumstances in the countries 
sectors or markets in which the group operates by their nature forwardlooking statements involve uncertainty because they 
depend on future circumstances and relate to events not all of which are within the group’s control or can be predicted by 
the group although the group believes that the expectations reflected in such forwardlooking statements are reasonable 
no assurance can be given that such expectations will prove to have been correct actual results could differ materially from 
those set out in the forwardlooking statements for a detailed analysis of the factors that may affect our business financial 
performance or results of operations please refer to the principal risks and uncertainties included in this annual report and 
accounts no part of these results constitutes or shall be taken to constitute an invitation or inducement to invest in the 
group or any other entity and must not be relied upon in any way in connection with any investment decision the group 
undertakes no obligation to update any forwardlooking statements
cover covered coal shed at chennai with 40000t capacity 09
10
11
0 10 20 30 40
09
10
11
0 5 10 15 20
09
10
11
0 20 40 60 80 120 100
09
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0 05 10 15 20 25
opg power ventures plc annual report and accounts 201101 
overview
business review
corporate governance
financial statements
highlights
revenue £m
ebitda £m
operational capacity mw
eps pence
financial highlights
revenue up 188 to £33 15m
ebitda up 124 to £1554m
eps up 559 to 2 129 pence per share
oversubscribed c£60m equity placing in february 201 1
cash and cash equivalents of £7995m  
including availableforsale investments amounting to £885m
longterm borrowings of £4525m
 
operational highlights
1 13 mw of capacity now fully operational
629 mw of fully funded growth projects 
77 mw chennai i stabilised in august 2010 with average load 
factors above 85
77 mw chennai ii commissioning on track for 2012
160 mw single unit chennai iii being developed on track
80 mw additional chennai expansion at the existing site
mou with government of gujarat for development of 
5400 mw
no coal supply shortages experienced by opg target achieved decit 
xth
plan
2007–
08
2008–
09
2009–
10
2010–
11
2011–
12e
ixth
plan
viiith
plan
0
10000
20000
30000
40000
50000
0
20
40
60
80
100
mw 
0
2000
4000
6000
8000
10000
12000
14000
india brazil china south
africa
russia uk france germany australia us
peak demand peak supply
1011 0910 0809 0708 0607 0506 0405 0304 0203
0
20000
40000
60000
80000
100000
120000
140000
02opg power ventures plc annual report and accounts 2011
 
trends and conditions
our markets
demand for power in india is expected to grow at 
10 every year and with capacity addition lagging 
behind targets the power deficit across the country 
is expected to continue in the future
in the last five years peak deficit has 
remained above the 10 levels while at the 
same time increasing in absolute terms from 
102 gw to 120 gw
target vs achieved capacity additions
electricity consumption per capita kwh
peak deficit mw
market opportunity
india’s gdp forecast to continue to grow   –
at 8
demand for power expected to continue  –
to grow at 10–12 pa to 2020
per capita consumption is a fraction of  –
china the rest of asia and western 
europe
power deficit continues ranges between  –
9 and 13
trend of capacity additions 40–50 below  –
planned capacity
coal based generation over 50 of total  –
installed capacity
coal based generation expected to  –
continue to be the biggest constituent and 
indian coal mining activities being 
expanded
investment rationale
highly profitable cash generative  –
operations
leading returns in sector due to group  –
captive model
industry leading group captive brownfield  –
projects portfolio of 629 mw fullyfunded 
and on track for 2013
pricing independent of tariff set by state  –
electricity boards
flexibility to use local or imported coal  –
experienced management team –
strong partners include debt providers  –
equipment suppliers engineering and 
operating companies and shareholders
source cea ministry of power
source cia world book 2010
1999–2000
 coal 61
 gas 10
 oil 1
 hydro 24
 nuclear 3
 renewable 1
2010–11
 coal 55
 gas 10
 oil 1
 hydro renewable 21
 nuclear 3
 res mnre 10
high latent demand – india still has very low 
per capita consumption compared to other 
developing countries
power generation by fuel
source cea ministry of power
source cea ministry of power
annual capacity addition has been much  
less than the planned targets for the sector 
resulting in power deficits
thermal power forms a major portion of the 
installed capacity in india accounting for 
over two thirds of the total installed capacity opg power ventures plc annual report and accounts 201103 
overview
business review
corporate governance
financial statements
group captive model
opg’s business model
opg is one of the pioneers of the group  –
captive power plant model
it supplies to broad base industrial and  –
commercial customers
in addition flexibility is retained to supply   –
to state electricity board “seb”
opg retains the option to supply as a  –
group captive plant or as a merchant 
plant
the model provides leading industry  –
returns
particulars
regulated  
ppa based competitive bidding merchant group captive 
concession type longterm ppa 
25 years
longterm ppa 
25 years
no longterm ppa 
rolling psa with traders
direct sale
bilateral arrangements  
with consumerstraders
utilities
tariff determination regulated cost plus 
basis – 155 roe
competitive bidding based 
on minimal pass through
psa with traderspot price discount to prevailing 
industrial tariffs 
opportunities limited policy thrust 
towards competitive 
biding 
multiple bids announced by 
state 
small to medium sized 
plants less than 500 mw 
small to medium sized 
plants less than 500 mw 
risk sharing no market risk no cost 
risk fuel cost – pass 
through
cost risk on developer fuel 
cost not on pass through 
restricted indexation
off take risk and price risk 
borne by the developer
off take risk and price risk 
borne by the developer
risk return low risk – fixed return varying risk profiles for 
different projects high risk 
for imported coal projects 
lower risk for captive mine 
projects 
fuel security key to reduce 
risks high returns
fuel security key to reduce 
risks high returns
equity returns assured 155 variable depending upon the  
risk profile
equity returns linked to tariff equity returns linked to tariff 
may be 30 plus
 government of india has discontinued policy of awarding regulated ppa’s
flexibility to determine pricing 
supply assured power to corporate and  –
industrial customers at tariffs mutually 
agreed without approval of the regulators
tariffs are set at a discount to the industrial  –
tariff set by the seb 
balance power 49 may be sold to a  –
distribution utility or trading licensee or to 
any other consumer
electricity act 2003 and captive power 
plants “cpp”
legislation allowing captive power plants  –
to be set up to generate electricity 
captive consumers to take up 51 of  –
aggregate electricity generated annually
compulsory access to grid allowed –
allows power to be sold on a panindia  –
basis 04opg power ventures plc annual report and accounts 2011
 
development
our operations and projects
operating
our main plants are located in the states of tamil 
nadu and gujarat amongst the most industrialised 
states of india
current operations
the current operations comprise  
the 77 mw chennai i plant 254 mw 
mayavaram natural gas plant and  
the 10 mw waste heat plant 
development projects
the group has 629 mw of projects 
under construction which are fully 
funded and are expected to be 
commissioned by 2013 
11 3 mw 629 mw
1 77 mw chennai i
thermal coal plant –
commissioned in april 2010 –
commercial generation from  –
august 2010
located 55km from chennai –
in close proximity to ennore and  –
chennai port
om contract awarded to tata power  –
company
plant operating smoothly at output levels  –
of 85
2 254 mw mayavaram
natural gas plant in tamil nadu –
6 mw expansion commissioned –
registered for carbon credit  –
certification
output levels at c80 of capacity –
om contract with wärtsilä –
iso 14001 certified –
3 10 mw waste heat
waste heat plant in chennai –
waste heat from sponge iron plant coal  –
and dolochar used
plant performing at c63 capacity level –
carbon credit registration in progress –
4 77 mw chennai ii
land and environment approvals in place –
project fully funded –
infrastructure shared with chennai i –
coal linkage obtained from coal india ltd –
civil works complete and main  –
equipment construction underway
completion expected in 2012 –
5 160 mw chennai iii
revised configuration of 160 mw from  –
2 x 80 mw
single unit expected to improve  –
fuel efficiency
land and environmental permits in place –
project fully funded –
completion expected in 2013 –
chennai i air cooled condenser
mayavaram
chennai bellary
opg power ventures plc annual report and accounts 201105 
overview
business review
corporate governance
financial statements
pipeline development
projects in the pipeline
the group’s aim is to have a portfolio  
of power plants of 1250 mw by 2015  
in addition it has a mou with the gujarat 
state to install 5400 mw 
6 80 mw chennai iv
land equity and environment approvals  –
in place
equity funding from internal resources –
shares infrastructure with chennai i  ii –
equipment delivery commenced –
civil works in progress –
coal linkage obtained from cil –
completion expected in 2013 –
7 12 mw bellary
acquired part completed plant in 2011 –
120 acre brownfield site well located in  –
industrial heartland of karnataka state
completion of 12 mw expected in 2013 –
potential to develop 250 mw plant –
8 300 mw gujarat
land debt and equity in place –
2 x 150 mw modular plants –
7000 tonnes of equipment ready for  –
delivery with bhel
engineering by tata consulting –
civil construction by gannon dunkerley –
completion expected in 2013 –
9 mou with gujarat state government
mou signed with gujarat state to  –
develop 5400 mw of generating 
capacity by 2018
4000 mw thermal coal and 1400 mw  –
gas plants
government of gujarat to facilitate  –
approvals
awarded to opg owing to strength of  –
team and project execution capabilities
10 508 mw pipeline expansion
plans to develop c508 mw capacity –
increasing capacity to 1250 mw by 2015 –
chennai ll boiler under construction chennai ll power house under construction
chennai
gujarat 06opg power ventures plc annual report and accounts 2011
 
our strategy
maximising performance of generation assets
customers
maximise plant availability and output –
assured reliable and uninterrupted supply –
ability to supply power direct to customers not via state utilities –
pricing competitive compared with utility tariffs and negotiated  –
directly with customers
profitability
secure best available tariff through flexibility of supplying power  –
either under group captive model or as a merchant operator
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  –
derisking our projects
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 –
financing
maximise cash generation to provide liquidity support and  –
potential project equity
maintain liquidity and manageable gearing levels –
regular open dialogue with shareholders and financing partners –
team
promote a safe working environment –
continually enhance development skills through internal mobility  –
of senior employees with project development experience
evolve reward structures to align with value creation –
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   10
11
–30 –20 –10 0 10 20
10
11
0 5 10 15 20
11
10
11
10
11
0 20 40 60 80 100
254 mw mayavaram
77 mw chennai
10 mw waste heat
10
11
0 05 1 15 2 25
10
11
0 20 40 60 80 100
10
11
0 5 10
opg power ventures plc annual report and accounts 201107 
overview
business review
corporate governance
financial statements
key performance indicators
gearing
gearing is a measure of net debt to 
shareholders equity plus net debt the group 
has net cash of £2964m 2010 net debt 
£1018m and negative gearing of 24 2010 
positive gearing of 10 as development of 
projects proceeds the gearing turns positive
ebitda £m
earnings before interest taxes depreciation 
and amortisation is a factor of volumes prices 
and cost of production this measure is 
calculated by adjusting non operational and 
exceptional items  and depreciation and net 
finance cost it is a measure of the company’s 
operating profitability ebitda for the year 
was £1554m up 124 
plant load factor
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 77mw chennai 
plant at 75 
eps pence
this represents net profit after tax attributable 
to equity shareholders eps growth also 
demonstrates the management of our capital 
structure earnings per share of 2129 pence in 
2011 represents an increase of 559 over 
2010 on account of higher net earnings 
attributable to shareholders from chennai i  
in which the group has an economic interest  
of 99
cagr
it measures the compound average year on 
year growth rate of the plant operating 
capacity of the group the group has added 
the 77 mw chennai i in this year and hence 
the cagr of capacity in 2011 is 94
average tariff realisation rskwh
this is the average price realised per unit of 
power sold revenue for the company is 
calculated by multiplying number of units sold 
by the average price realised the average 
tariff achieved for 2011 was rs 495kwh 
amongst the highest in the sector due to the 
group captive model 08opg power ventures plc annual report 2011
 
capacity growth profile
0
calendar 
year
500
1000
1500
2000
2500
 capacity added   existing capacity
2008
mw
2009
2010
2011
30
107
11 3
the company lists on 
aim with 20 mw 
operational capacity  
in september 2008 
10 mw waste heat plant 
in chennai is 
commissioned
the group announces  
plans to extend 
development capacity 
by 600 mw to 1250 mw 
by 2015
77 mw chennai i is 
commissioned in april 
2010 increasing total 
operational capacity to 
107 mw
6 mw expansion at 
mayavaram gas plant  
in 2011 bringing total 
capacity to 113 mw
the company raises 
£60m equity for its 
development pipeline opg power ventures plc annual report 201109 
overview
business review
corporate governance
financial statements
0
calendar 
year
500
1000
1500
2000
2500
mw
2012
2013
2014
2015
190
742
1250
552 mw of projects 
expected to commission 
multiplying current 
capacity 5 times to 
742 mw
77 mw chennai ii is 
expected to commission 
increasing operational 
capacity to 190 mw
508 mw of pipeline 
capacity to be 
commissioned achieving 
the target of 1250 mw 10opg power ventures plc annual report and accounts 2011
 
chairman’s statement
i am pleased to report on a landmark 
year for your company that witnessed the 
commissioning and optimisation of our 
first major project the 77 mw chennai i 
revenue of £3315m compared with 
£1152m in 2010 whilst earnings per 
share grew by over 500 in line with the 
dramatic change in our generation capacity 
from 30 mw in 2010 to 113 mw in 2011 
notably for a company that focuses on 
building shareholder value our margins 
have been amongst the highest in our 
indian peer group of independent electricity 
generators despite the highly publicised 
inflationary pressures affecting our industry 
consequently the company’s cash position 
of £7995m has enabled us to maintain 
gearing levels at just 24 and to look forward 
with confidence to investing in growth 
we progressed the development of all our 
projects during the year and have recently 
announced an acceleration of chennai ii 
as well as the addition of another replica 
80 mw unit at chennai such that we now 
have 317 mw of brownfield projects under 
development at chennai out of a total of 629 
mw companywide projects under fullswing 
development for commissioning by 2013 
on this basis we continue to maintain our 
targeted capacity of 1250 mw by 2015 
the company continues to benefit from 
a structural shortage in supply of reliable 
power in india with the planned additional 
supply likely to fall acutely short of the 
300–315 gw by 2017 required in the next 
five years we believe this dynamic will 
prevail and prices will remain firm
the demand outlook for power in india has 
its foundation in the government’s projected 
economic growth for the country of c8 
pa india emerged from the 2008–2009 
global financial crisis with a strong domestic 
economy and rapidly accelerating industrial 
production as a result demand or more 
realistically the need for infrastructure 
development has been and we expect shall 
continue to be a key area of policy focus 
this development needs to weather 
the compounding challenges of raw 
material inflation consumer price 
inflation leading to the tightening of 
monetary policy and the accumulated 
losses of state electricity boards 
chennai plant switch yard
overview of the 10 mw waste 
heat plant in chennai
with this backdrop our strategy needs 
to continue unabated with a focus on 
optimising the performance of our generation 
assets migrating the learning experience 
from building these assets in upcoming 
developments and to continually derisk 
and deliver our largely brownfield growth 
portfolio one important aspect of this is 
the need to retain our ability to be flexible 
with regard to fuel procurement rather than 
to be greatly exposed to a small number 
of possible fuel sources we embrace the 
challenges of developing projects in such 
a fastgrowth economy as we believe our 
model of operating flexible highmargin 
standalone units positions us well in doing so 
the board wishes to record its thanks to the 
company’s shareholders for their support 
during our oversubscribed £60m equity 
raising earlier this calendar year as well 
as to its financing and technical partners 
and customers for their vital contribution 
to the company’s continued progress 
i’d like to make a special mention of the 
dedication and hard work of our team 
since our ipo in may 2008 we are now 
beginning to taste the fruit of all this effort 
as i’ve no doubt such commitment will 
continue i am able to conclude that the 
company’s profitability and cash generation 
now provide an excellent platform for our 
longterm growth i remain confident of 
the company’s continued success 
m c gupta
12 august 2011
mr munish gupta
nonexecutive chairman opg power ventures plc annual report 201111 
overview
business review
corporate governance
financial statements
overview
business review
corporate governance
financial statements 12opg power ventures plc annual report and accounts 2011
 
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 medium term
review contracts periodically to obtain best   –
possible tariffs 
flexibility to sell to captive consumers or in the   –
open market 
benchmarking captive consumer prices to state   –
utility prices to benefit from any price increases
availability of 
fuel supply and 
costs
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 cashflows to ensure repayment of debt and  –
interest in line with schedule
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 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 heath  –
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 programs to aid the development of these 
communities opg power ventures plc annual report and accounts 201113 
overview
business review
corporate governance
financial statements
indiaspecific risks
risk potential impact monitoring and mitigation
government 
policy and 
regulatory
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 
licenses previously granted
it continually ensures compliance with the conditions  –
contained within individual licenses 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 14opg power ventures plc annual report and accounts 2011
 
chief executive’s 
statement
milestone year provides solid 
platform for growth
the year ended 31 march 2011 was a 
landmark year for opg with the successful 
commissioning of the group’s first major 
project of 77 mw the chennai i plant is 
now operating consistently at load factors 
of around 90 providing strong cash flow 
to the group and underpinning our track 
record of successful project delivery
the oversubscribed equity raising of c£60m 
gross of transaction fees in february 2011 
demonstrated support from the company’s 
stakeholders and provides capital to fund 
a 629 mw pipeline of projects under 
construction and development combined 
with the 113 mw of existing operational 
capacity this total pipeline has increased 
substantially from the initial 377 mw that 
we committed to at our ipo in may 2008 
we remain on track to deliver our target 
of 1250 mw of capacity by 2015
profitable operations and 
strong cash generation
output levels and operations at chennai i 
were successfully stabilised in august 2010 
and the plant’s operational performance 
has been in line with expectations in the six 
months to june this year the plant performed 
at an average monthly output level of c85
profit before tax was up 105 to £1116m 
benefiting from a partial contribution 
from chennai i which began commercial 
operations in august 2010 opg’s strong 
results for the year ended march 2011 are 
reflective of the group captiveopen market 
sales strategy and the profit from continuing 
operations at 39 of revenue is among 
the highest in the industry average price 
realised for the year was rs 495kwh
in line with our stated strategy we intend 
to continue to utilise cash generated from 
operations principally to fund growth 
and optimisation opportunities
projects remain ontrack 
despite local challenges
the group’s current total capacity stands 
at 113 mw inclusive of the additional 6 mw 
of capacity recently added to the gas fired 
power station at mayavaram a significant 
increase from the 194 mw of operating 
capacity at the time of the ipo in may 
2008 the chennai development projects 
are progressing well the accelerated 
commissioning of the second 77 mw unit 
chennai ii for 2012 is set to increase the 
group’s total operating capacity to 190 
mw and further progressive increases are 
expected thereafter to achieve 742 mw by 
2013 some local objections faced in the 
wake of environmental clearances for the 300 
mw kutch project are now under resolution 
and we are awaiting formal approval from 
the ministry of environment and forests 
new delhi the project which is fully funded 
remains on track for commissioning in 2013
also during the year opg signed an mou 
with the government of gujarat to build 5400 
mw of capacity by 2018 details of specific 
projects and an implementation schedule are 
currently in development and we look forward 
to reporting on further progress in due course
during the year and since then the group 
continues to operate in an environment 
of elevated coal prices administrative 
challenges in obtaining key approvals and 
higher interest costs however relative to 
our peer group we believe our margins and 
our continued growth demonstrate that the 
group is well positioned to deal with such 
challenges through our local relationships and 
the flexibility incorporated into our business 
model and plant configurations we have 
also incorporated key lessons from previous 
developments into subsequent projects 
and as a result we continue to be confident 
that the company can deliver a profitable 
growth pipeline on time and within budget
mr arvind gupta
managing director and ceo
project commissioning schedule mw
calendar year total mw 2012 2013 2014 2015
operations
mayavaram 26
waste heat 10
chennai i 77
development
chennai ii 77 77
chennai iii 160 160
chennai iv 80 80
bellary 12 12
gujarat 300 300
pipeline
pipeline 508 508
cumulative capacity 1250 190 742 742 1250 opg power ventures plc annual report and accounts 201115 
overview
business review
corporate governance
financial statements
indian power market remains in deficit
despite volatility elsewhere in the global 
economy india’s gdp is expected to continue 
to grow at around 8 in the coming years 
resulting in annual power demand growth of 
10 india’s total planned capacity additions 
as at 31 march 2011 were only 52 of the 
targeted 78000 mw and there remains an 
expected shortfall of 30–35 versus the target 
by march 2012 this trend points towards 
continuing and increasing power production 
deficits which currently run at about 10
with the planned additional supply likely 
to fall acutely short of the 300–315 gw 
required over the next five years and 
given the imperative for a correction in 
pricing by state utilities we believe this 
supply constrained environment will prevail 
and power prices will remain firm
opg maintains flexibility in 
its procurement of coal
70 of opg’s projects under development 
have committed supplies of indian coal with 
the remaining 30 utilising imported coal 
this balance of supply has enabled opg to 
establish close working relationships with 
both domestic and imported coal suppliers 
thereby mitigating the threat of coal not 
being available from any one source
summary
opg has made significant progress in the 
year successfully commissioning the 77 
mw chennai i facility producing significant 
increases in both revenue and profits in the 
current year we expect to benefit from its full 
year contribution albeit in an environment 
of high coal prices and borrowing costs 
we expect our operating model to provide 
flexibility with regards to these challenges 
most importantly we believe the profitable 
operation of chennai i in 2011 creates a 
firm platform for the company’s longterm 
growth accordingly we feel confident about 
the delivery of our 2015 target of 1250 mw
arvind gupta
12 august 2011
with coal in relatively short supply the 
indian power sector has unsurprisingly 
experienced upward price pressure for this 
key input to the power business most indian 
power producers unlike opg are reliant on 
obtaining coal either from the development 
of coal blocks or entirely on imported coal in 
addition the design of opg’s boilers allows 
the use of both high moisture imported and 
higher ash domestic grades of coal either 
exclusively or in a blended fuel source 
we expect coal prices to remain firm in 
the short term given the current economic 
growth rates in asia although prices should 
eventually stabilise in the medium term 
as coal supplies and demand fall more 
into line the company continues to look 
for additional opportunities to enhance 
profitability by optimising its fuel procurement
team
our priority is to provide a safe healthy 
working environment for employees 
and be responsible towards the 
communities in which we operate
our talented team is central to achieving the 
objectives of the company over the last 
year the team has built upon its significant 
experience and knowledge in developing and 
operating power plants as evidenced by the 
high load factors being achieved at chennai i 
and the continued progression and expansion 
of the company’s growth pipeline we value 
their commitment and contribution and would 
like to thank them for their continued efforts 16opg power ventures plc annual report and accounts 2011
 
asset generation mwh availability  plant load factor 
2011 2010 2011 2010 2011 2010
chennai i 77 mw
1
3293 na 838 – 753 –
waste heat 10 mw 556 639 888 939 634 729
mayavaram 254 mw
2
1281 1046 915 94 813 664
total 513 1685
1 opg power generation – chennai 77 mw commenced commercial operations in august 2010
2 opg energy – mayavaram 254 mw has increased capacity by 6 mw
operational review
production and output levels
2011 saw the commencement of generation from the  
77 mw chennai i plant across the group total power 
generation capacity was more than triple the previous year
77 mw chennai i
in april 2010 the first unit of the chennai 
power project was synchronised with the 
grid following stabilisation commercial 
operation started in august 2010 the plant 
was used for testing in december 2010 to 
optimise performance and to ensure high 
performance levels of the boiler for chennai ii
during the year the chennai i plant achieved 
an average output level of 753 in the first 
six months of 2011 calendar year average 
output levels were higher at 88 chennai i 
is sustaining these high levels of performance 
and on this basis we are confident of 
maintaining an average performance of 
over 85 for the financial year 2012
10 mw waste heat
the 10 mw waste heat fired plant near 
chennai which will shortly be completing 
three years since commissioning also 
performed satisfactorily with output levels 
during the year averaging 634 of capacity 
2010 73 the lower output level was 
on account of extended maintenance 
closure of the waste heat furnaces of the 
sponge iron unit and we expect improved 
output levels in the current year
254 mw mayavaram
the 194 mw gas fired plant in mayavaram 
now in its eighth year of operation delivered 
a satisfactory performance capacity was 
enhanced to 254 mw in june 2011 gas 
flow levels were restored from august 
2010 to the levels of 2008 following the 
connection of additional productive wells 
consequently the plant load factor or 
output level during the year was 81 
compared to 66 in the previous year a 
significant increase in the gas prices was 
absorbed and the operation remained 
profitable the project has been registered 
under the unfccc for carbon credit 
and is awaiting validation and verification 
cers ‘certified emission reductions’ 
will be available for trading thereafter
power output from all three operational 
plants was sold principally in the short
term market achieving amongst 
the highest tariffs available
204
increase in generation in fy 2011
chennai i control room coal shed chennai i
chennai i – view of boiler opg power ventures plc annual report 201117 
overview
business review
corporate governance
financial statements 18opg power ventures plc annual report 2011
  opg power ventures plc annual report and accounts 201119 
overview
business review
corporate governance
financial statements
development projects
we are currently developing total capacity 
at the chennai site of 317 mw previously 
237 mw through the following projects
chennai ii 
planning permissions and financial closure 
are complete for second phase of expansion 
of 77 mw at the chennai site and the 
unit is now under active construction 
the civil works for chennai ii have been 
completed and the construction of main 
equipment has already commenced and 
is on course for commissioning by 2012
chennai iii
a 160 mw facility in place of the earlier  
2 x 80 mw unit is under development  
this revised configuration will 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 
the targeted commissioning date for  
chennai iii remains 2013 debt financing  
is in place equipment orders are 
being finalised and equity is available 
from existing resources planning 
permissions have been obtained and 
construction will commence shortly
chennai iv
an additional 80 mw unit will be added at 
the present site taking the total expansion 
of capacity at this location to 317 mw as 
against 237 mw initially envisaged the equity 
component of the required capital expenditure 
is to be financed from the group’s internal 
resources planning permission for the 
development has been obtained and 
equipment delivery has commenced the 
civil works for chennai iv are in progress the 
company is targeting commissioning in 2013
gujarat
the gujarat 2 x 150 mw project has received 
environmental clearance and construction 
is to commence once additional clearance 
from the ministry of environment and forests 
new delhi is received for sea water intake and 
outfall the proposal has been cleared by the 
expert committee constituted by the ministry 
and the company is awaiting formal approval 
shortly in the meantime the company has 
undertaken the required preparation to ensure 
this project moves into construction promptly 
given its targeted commissioning in 2013
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 120acre 
site and has the potential to expandbuild 
up to 250 mw of capacity the 12 mw 
is expected to commission in 2013
operational review continued
turbine of chennai i coal conveyor belt for chennai l
construction of chennai ii and iii underway 20opg power ventures plc annual report and accounts 2011
 
financial review
profitable operations and strong cashflow
mr v narayan swami
finance director
income statement summary
year ended 31 march 2011 2010 change
£m £m 
revenue 3315 1152 188
ebitda 1554 695 124
net finance costs 132 151 –187
income from continuing operations before tax 
nonoperational andor exceptional items 1301 783 66
preoperative expenditure on projects 
under construction 040 117 –66
esop charge 145 121 20
profit before tax 1116 545 105
taxation 241 143 69
profit after tax 875 402 118
revenue
opg’s revenue increased to £3315m 188 growth year on year primarily due to the 
commencement of commercial operations at chennai i 77 mw in august 2010
gross profit
gross profit increased to £144m in 2011 2010 £7 3m gross profit was also driven by the 
contribution of chennai i since august 2010 and offset by the increase in gas prices and the 
difference in average exchange rate used in the income statement 1 gbp  rs 7096 2011 
and rs 7619 2010
particulars £m
gross profit in 2011 1448
gross profit in 2010 735
increase in gross profit 712
ebitda
ebitda
3
 for the year was £1554m up 124 and reconciled with profit after tax as follows
year ended 31 march 2011 2010 change
£m £m 
profit after tax 875 402 118
tax 241 143 69
depreciation 121 063 92
esop expenses 145 121 20
preoperating expense 040 117 –66
net finance cost 132 151 –187
total 1554 695 124
3  excludes exceptional or nonoperational items such as the annual charge for stock options which is a noncash item 
or expenses relating to projects under construction
taxation
the income tax charge of £241m in 2011 
2010 £143m comprises current tax of 
£211m 2010 £141m and deferred tax of 
£030m 2010 £002m the current tax 
charge has increased by £1m primarily due to 
the increase in profits which are subject to 
corporate income tax or minimum alternate 
tax ‘mat’ as appropriate the majority of 
profits derived from opg’s operations in india 
are subject to mat mat is charged on book 
profits in india at a rate of 1993 but is 
available as a credit against corporate income 
tax in the following 10 years the deferred tax 
charge of £030m 2010 £002m in 2011 is 
mainly on account of property plant and 
equipment and the impact of depreciation 
unabsorbed due to timing differences as 
between book and tax depreciation the 
groups’ 2011 effective tax rate for the year 
was 22 2010 26
nonoperational items
preoperating expenses represent expenses 
pertaining to projects under construction 
charged to the income statement these 
expenses in 2010–11 were lower at £040m 
in 2011 2010 £117m as one major project 
commenced commercial operation during 
the year
employee stock option charges are linked to 
sharebased payments to certain directors 
and are noncash in nature
profits after tax
profits after tax increased by £473m 
representing 118 year on year growth from 
£402m in 2010 to £875m in 2011 as a result 
of the contribution from the 77 mw chennai i
earnings per share
eps of 2129p in 2011 represents an increase 
of 559 over 2010 on account of higher net 
earnings attributable to shareholders from 
chennai i in which the group has an 
economic interest of 99 opg power ventures plc annual report and accounts 201121 
overview
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financial statements
property plant and equipment
property plant and equipment increased 
during the period by £1136m an 18 year 
on year growth mainly reflecting the increase 
in capital work in progress on account of 
additional power plants in chennai and 
gujarat total property plant and equipment 
at £7399m 2010 £6263m includes assets 
under construction amounting to £1842m 
2010 £47 46m and property plant and 
equipment net of depreciation amounting to 
£5557m 2010 £1517m during the year an 
amount of £4030m has been capitalised in 
the chennai i 77 mw plant
current assets
current assets have increased by £6881m to 
£13213m year on year primarily as a result of
a an increase of £57m in cash and cash 
equivalent following the equity placement 
in february 2011
b an increase of £89m in inventories and 
trade and other receivables due to the 
commencement of operations in the 
77 mw power plant
c an increase of £291m net in investments 
and other current assets
current liabilities
current liabilities have increased by £543m 
primarily due to the commencement of 
operations in the 77 mw power plant
other noncurrent liabilities
other noncurrent liabilities have increased by 
£137m primarily on account of an increase in 
bank borrowing to meet the capital project 
expenses
cash flow
cash flow 2011 2010
£m £m
operating cash 1515 577
tax paid 197 106
change in working capital assets and liabilities 943 716
purchase of property plant and equipment net of disposals 1976 2902
other investments 141 1032
net cash used in investing activities 1835 3934
net interest paid 265 061
free cash flow 1725 2807
equity issued net 5738 –
total cash change before net borrowings 4014 2807
operating cash flow increased from £577m in 2010 to £1515m in 2011 an increase of £938m 
or 162 the increase is primarily driven by an increase in operational activity net proceeds of 
£57 4m were from the equity raising february 2011
debt and liquidity
2011 2010
£m £m
gross debt 5031 3733
cash and cash equivalent 7110 1417
investments and other financial assets 885 1298
net cashdebt 2964 1018
total equity 15103 8859
gearing  net debtnet debt  total equity 24 10
the group has net cash of £2964m 2010 net debt £1018m and negative gearing of  
24 2010 positive gearing of 10 as development of projects proceeds it is expected that 
the gearing may turn positive the borrowings are in respect of the construction of power 
stations the group is in a position to raise borrowings for its power station developments  
all of the group’s debt is denominated in indian rupees being the functional currency of its 
indian operations 22opg power ventures plc annual report and accounts 2011
 
responsible growth
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 relevant to their 
businesses 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 group continues 
to monitor the level of environmental 
incidents and workplace accidents
the following environmental initiatives have 
either been completed during the year or 
currently being implemented or under review
1 fossil fuel in the form of coal or gas is the 
key natural resource used to generate 
power at our plants we constantly strive 
to improve the efficiency of our power 
stations by minimising the amount of 
fuel used for each unit of electricity 
generated for example a 160 mw facility 
currently under construction in chennai 
will result in savings of up to 11 in coal 
consumption recycling of waste materials 
is another important focus the chennai 
plant has achieved 100 utilisation of fly 
ash and bottom ash by disposing these 
to cement and brick manufacturers
2 the chennai plant and kutch plants 
are located in areas where fresh 
water resources are limited and 
therefore dry cooling and sea water 
systems respectively have been 
installed which dramatically reduce 
the quantity of fresh water utilised 
hence saving scarce resources
3 green initiatives are being implemented 
at the chennai plant with an emphasis 
on harvesting rain water recharging 
ground water and energy conservation 
in the nonprocess area this process is 
anticipated to take between 12 and 18 
months after which the group expects 
that the plant will be certified by the 
indian green building council and
4 the maruthur plant has received iso 
14001 certification environmental 
management standards and 
the chennai plant is currently 
undertaking the same process
we understand that our approach to tackling 
global warming and reducing carbon 
emissions is important to future business 
competitiveness with this in mind we 
have registered under the united nations 
framework convention on climate change 
and are 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
employees
the group is committed to investing in the 
training and development of our people 
in order to attract and retain staff with the 
necessary talent to help the business achieve 
its growth potential and competitive edge
effective internal communication is 
essential to ensure employees receive 
accurate information on the group’s 
strategy major initiatives corporate 
developments and industryspecific issues
our people priorities include building the 
group’s reputation as an “employer of 
choice” this involves establishing a clear 
link between performance and rewards 
helping employees achieve their desired 
level of worklife balance and continuing 
to invest time and effort in building strong 
relations with employees at all levels
community
the group recognises the importance of 
engaging with the communities in which 
we operate as the case study opposite 
illustrates 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 
we recognise that we owe a duty of care 
towards the environment and society 
we have a responsibility to conduct 
our business with sensitivity for the 
environment specifically where our business 
has a direct impact we follow fair and 
ethical principles to govern the way we 
manage and conduct our business
the company takes seriously its responsibilities to  
the environment and the communities in which it 
operates we believe that these responsibilities can 
have a positive impact on shareholder returns as well 
as on our reputation and growth prospects opg power ventures plc annual report and accounts 201123 
overview
business review
corporate governance
financial statements
opg outreach in 
collaboration with the 
bhadreshwar local 
council and welspun 
company launched an 
initiative to empower 
women and contribute  
to the sustainable 
development of the area 
the main purpose of the program ‘shree 
sakhi swarnim talim kendra’ is twofold 
first to provide women with vocational 
training and ensure that they have self
employment opportunities after training 
they will be provided with employment and 
the programme will monitor the quality 
of the goods they produce second the 
programme will be responsible for fair 
marketing of the goods produced ensuring 
that the income generated has a significant 
impact on livelihood of the women’s families
launch of opg outreach
opg has provided the entire infrastructure 
for the training centres along with all the 
required equipment utilities and supplies  
in the short time since commencement of 
the programme 32 women have completed 
their training at our centre and have started 
producing goods presently 210 women  
are enrolled at the centre and we expect  
that going forward the centre will be a 
strong advocate for the socioeconomic 
development of the surrounding  
community and families 24opg power ventures plc annual report and accounts 2011
 
board of directors
mr v narayan swami 6 mr p michael grasby 4 mr arvind gupta 2 mr ravi gupta 5 mr martin gatto 3 mr munish c gupta 1 opg power ventures plc annual report and accounts 201125 
overview
business review
corporate governance
financial statements
1 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
3 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 a graduate of brunel university and  
is a fellow of the chartered institute of 
management accountants
2 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 18mw 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
4 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 vice
president 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 
5 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
6 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 ten 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 of best  
crompton engineering listed on the 
bombay stock exchange before joining 
the group in 2007 as finance director  26opg power ventures plc annual report and accounts 2011
corporate governance
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 
seeks to comply with the code 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
statement of compliance
since admission to aim the board has 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 during the current financial year 
considering the following initiatives
1 schedule of matters reserved a11
the board has agreed to establish a formal schedule of matters 
specifically reserved to it for decision which will set out those matters 
requiring board approval
2 nonexecutive directors a42
the board is currently considering the requirements that the chairman 
holds formal meetings with the nonexecutive directors without the 
executives present and the nonexecutive directors meet without the 
chairman to appraise the chairman’s performance
3 nominations committee b1
the board at an appropriate time will establish a nominations 
committee which 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
4 development and evaluation b4b6
upon the establishment of a nominations committee there will be a 
formal process by which directors receive a full formal and tailored 
induction on joining the board a full evaluation of the board its 
committees and the individual directors will take place during the 
current financial year
5 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 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 page 25 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 
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 
board meetings were held in the isle of man chennai and sri lanka opg power ventures plc annual report and accounts 201127
overview
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corporate governance
financial statements
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
chairman and chief executive officer
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 chairman’s 
other current responsibilities are set out in the biographical notes on 
page 25 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
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 ravi gupta and munish 
gupta will offer themselves for reelection at the agm on tuesday 27 
september 2011
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 a director 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 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 company secretary in consultation with the chairman and chief 
executive officer will in due course develop an induction process for 
each new director tailored to their individual knowledge and 
experience
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 the board has agreed to 
establish a procedure for evaluating the performance of the board its 
committees and the individual directors and the results of the 
appraisal together with any recommendations for improving 
effectiveness to be presented by the chairman to the whole board for 
discussion 28opg power ventures plc annual report and accounts 2011
corporate governance continued
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 4 – – – –
narayan swami 4 4 – – – –
munish gupta 4 4 2 2 – –
martin gatto 4 4 2 2 – –
michael grasby 4 3 2 1 – –
ravi gupta 4 4 2 1 – –
number of 
meetings held 
during the year 4 2 0
board committees
audit committee
the members of the audit committee are munish gupta martin 
gatto michael grasby and ravi gupta martin gatto is considered to 
have recent relevant financial experience the chief executive and 
finance director and a representative of the auditors are normally 
invited to attend meetings of the committee
the primary duty of the audit committee is to oversee the accounting 
and financial reporting process of the group the external audit 
arrangements the internal accounting standards and practice the 
independence of the external auditor the integrity of the group’s 
external financial reports and the effectiveness of the group’s risk 
management and internal control system 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 appointment of grant thornton as auditors to the company and –
reviewing the integrity of the group’s preliminary and interim results  –
announcements and any other formal announcement relating to its 
financial performance
the terms of reference of the audit committee are available on the 
company’s website wwwopgpowercom
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 determine and 
agree with the board the framework or broad policy for the 
remuneration of the executive directors senior managers and such 
other members of the executive management team of the group as is 
deemed appropriate the remuneration of the nonexecutive directors 
is a matter for the chairman and the executive members of the board 
no director may be involved in any decisions as to their own 
remuneration the remuneration committee did not meet during the 
year under review
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 30 to 33
the terms of reference of the remuneration committee may be found 
on the company’s website wwwopgpowercom
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 and audit 
committee are responsible for reviewing the effectiveness of its 
internal control systems the audit committee will review these 
systems 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 board plans to establish a formal process for identifying 
evaluating and managing the significant risks the group faces since 
admission to aim and which is in accordance with the current 
guidance on internal control the audit committee will assist the 
board in discharging its review responsibilities a summary of the key 
risks facing the group and mitigating actions is described on pages 
12 and 13 opg power ventures plc annual report and accounts 201129
overview
business review
corporate governance
financial statements
assurance
with grant thornton only having been appointed during the year the 
committee considered it too early to review their independence and 
effectiveness but will do so during the current 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 
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 
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 recent 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 2011 
accounts
shareholder relations and the agm
the chief executive 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 continue to 
keep in touch with shareholder opinion
the agm of the company will be an opportunity to communicate with 
shareholders and the board welcomes their participation the 
chairmen of the remuneration and audit committees will be present 
at the annual general meeting to answer questions 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 30opg power ventures plc annual report and accounts 2011
directors’ remuneration report 
introduction
this report sets out information about the remuneration of the 
directors of the company for the year ended 31 march 2011 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 martin gatto 
chairman munish gupta 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 determine and agree with the 
board the framework or broad policy for the remuneration of the 
executive directors senior managers and such other members of the 
executive management team of the group as is deemed appropriate 
the remuneration of the 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 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
approve the design of and determine targets for any performance –
related pay schemes operated by the group and to approve the 
amounts paid annually under such schemes
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 chairman of the board and 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
the terms of reference of the remuneration committee are available 
on the company’s website wwwopgpowercom
advisors
the remuneration committee has not to date appointed any 
advisors to assist it in formulating the group’s remuneration policy
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 achieve 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 also seeks to align the interests of shareholders with those 
of executive directors and senior employees by giving the latter 
opportunities and encouragement to build up a shareholding interest 
in the company through the stock option plan approved by the board 
on 16 july 2009 the ‘stock option plan’ opg power ventures plc annual report and accounts 201131
overview
business review
corporate governance
financial statements
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 executive directors excluding the chairman 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
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 current salary pa £
arvind gupta managing director and chief executive officer 23 may 2008 169109
v narayan swami finance director 23 may 2008 50734
benefitsinkind
under their service agreements mr gupta and mr swami are entitled to medical travel and related insurance and accommodation allowances 
in connection with work activities
pensions
the group does not operate a pension scheme in the event that the group establishes a scheme it will be matter for the committee to 
determine the level of contribution payable by the executives and group respectively based on actuarial advice
chairman and nonexecutive directors
the remuneration of the chairman of the company and the nonexecutive directors consists of fees that are paid monthly in arrears the 
chairman and nonexecutive directors do not participate in any longterm incentive or annual bonus schemes nor do 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 following a formal process for evaluating the performance of the board as noted in the report on corporate 
governance its committees and the individual directors this will be addressed during the current year 32opg power ventures plc annual report and accounts 2011
directors’ remuneration report 
continued
the nonexecutive directors’ fees have been set at a level to reflect the time commitment and level of involvement that they are required to make 
in the activities of the board and its committees
the key terms of the nonexecutive directors’ letters of appointment are as follows
director date of appointment fees pa £
munish gupta nonexecutive chairman 6 may 2008 25000
martin gatto nonexecutive director 6 may 2008 25000
michael grasby nonexecutive director 6 may 2008 25000
ravi gupta nonexecutive director 12 may 2008 25000
the remuneration of the nonexecutive directors consists of fees that are paid quarterly the nonexecutive directors do not participate in the 
employee share plan nor do they accumulate any pension entitlements
external appointments
it is the board’s policy to allow the executive directors to accept directorships of other companies provided that they have obtained the consent 
of the board any such directorships must be formally notified to the board
directors’ interests in ordinary shares
the interests of directors in the ordinary share capital of the company during the year were as follows
31 march  
2011
1 april  
2010
gita investments limited 153061225 153061225
gita power inc 17006802 1 7006802
sri hari vallabha enterprises  investments private limited 3401361 3401361
dhanvarsha enterprise  investments private limited 2551020 2551020
goodfaith vinimay private limited 2551020 2551020
michael grasby 5000 5000
martin gatto 50000 50000
total 178626428 178626428
note
 beneficial interest in these shareholdings vests with arvind gupta
there were no changes to directors’ interests between 31 march 2011 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 2011 other than their service contracts opg power ventures plc annual report and accounts 201133
overview
business review
corporate governance
financial statements
part ii – audited information
directors’ remuneration for the period 1 april 2010 to 31 march 2011
salary annual bonus and benefits
£ salaryfees benefitsinkind annual bonus total 2011 total 2010
nonexecutive chairman
munish gupta 25000 – – 25000 25000
executive directors
arvind gupta 169109 – – 169109 157480
v narayan swami 50734 – – 50734 47244
nonexecutive directors
martin gatto 25000 – – 25000 25000
michael grasby 25000 – – 25000 25000
ravi gupta 25000 – – 25000 25000
total 319843 – – 319843 304724
note
no consideration was paid or received by third parties for making available the services of any executive or nonexecutive director
directors’ share options
directors’ share options – options outstanding
movements during the period
option granted
option price  
£
options as at 
1 april 2010 lapsed exercised
options as at 
31 march 2011 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 2011 the closing midmarket price of the company’s shares was 94p during the year under review the company’s closing share 
price ranged between a low of 5825p and a high of 110p
this report has been approved by the board of directors of opg power ventures plc
signed on behalf of the board
m c gupta
chairman remuneration committee
12 august 2011 34opg power ventures plc annual report and accounts 2011
directors’ report
the directors present their report together with the audited financial 
statements of the group for the year ended 31 march 2011
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 open 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 page 7
ii chairman’s and ceos’ statements on pages 10 14 and 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 16 to 19 and
iv the responsible growth report on pages 22 and 23
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
details of significant events since the year end date are contained in 
note 28 to the financial statements
4 dividends
the financial statements for the year ended 31 march 2011 are set 
out on pages 37 to 66 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 2010 no dividend was paid for the year 
ended 31 march 2010
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 page 27 
details of directors’ service agreements are set out in the directors’ 
remuneration report on pages 31 and 32
the interests of the directors in the shares of the company are shown 
in the directors’ remuneration report on page 32
biographies of all the directors at the date of this report are set out on 
page 25
6 directors’ indemnities
as at the date of this report 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 supplier payment policy
the group’s policy is to agree terms of payment with suppliers when 
agreeing the terms of each transaction and ensure that suppliers are 
made aware of and abide by the terms of payment 
8 fixed assets
in the opinion of the directors there is no material difference between 
the book value and the current open market value of the group’s 
interests in land and buildings
9 substantial shareholdings
the company has been notified of the following interests in 3 or 
more of the company’s total voting rights at 31 march 2011
percentage of 
voting rights 
and issued 
share capital
number of 
ordinary shares
gita investments limited 5080 178576428
mg investment management limited 1004 35286469
audley capital advisors llp 866 30435650
legal  general investment 
management limited 609 21411465
four capital partners limited 418 14680777 opg power ventures plc annual report and accounts 201135
overview
business review
corporate governance
financial statements
10 agm
this year’s agm will be held at our registered offices on tuesday  
27 september 2011 at 1130am the notice convening the meeting 
together with details of the special business to be considered is 
contained in a separate document sent to shareholders it is also 
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 centre
shareholder circulars
11 employees
the number of employees within the group as at 31 march 201 1 were 122
12 audit information
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
13 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
14 additional information
articles of association
the following narrative summarises information relating to certain 
provisions in the company’s articles 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 fresh issued share 
capital 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 
shareholder approval to authorise the company 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 
pages 31 and 33
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 26
by order of the board
philip scales
company secretary
opg power ventures plc
ioma house
hope street
douglas
isle of man
im1 1ap
12 august 2011 36opg power ventures plc annual report and accounts 2011
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 201137
overview
business review
corporate governance
financial statements
independent auditors’ report to the 
members of opg power ventures plc
we have audited the accompanying group and company financial statements of opg power ventures plc for the year ended 31 march 2011 
which comprise the consolidated and company statement of comprehensive income the consolidated and company statement of financial 
position the consolidated and company 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 set out on page 36 the directors are responsible for the preparation of the 
financial statements and for being satisfied that they give a true and fair view our responsibility is to audit and express an opinion on the 
financial statements in accordance with applicable law and international standards on auditing uk and ireland those standards require us to 
comply with the auditing practices board’s ethical standards for auditors
scope of the audit
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that 
the financial statements are free from material misstatement whether caused by fraud or error this includes an assessment of whether the 
accounting policies are appropriate to the group’s and 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 
in addition we read all the nonfinancial information in the business review and corporate governance statement to identify material 
inconsistencies with the audited financial statements if we become aware of any apparent material misstatements or inconsistencies we 
consider the implications for our report
opinion on financial statements
in our opinion the 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 and company’s affairs as at 31 march 2011 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
12 august 2011 38opg power ventures plc annual report and accounts 2011
consolidated and company statement of comprehensive 
income
for the year ended 31 march 2011 
all amounts in £ unless otherwise stated
consolidated company
particulars notes 2011 2010 2011 2010 
revenue 33147184 11515409 – –
cost of revenue 6 18669898 4161175 – –
gross profit 14477286 7354234 – –
other income 7 2537869 242765 – –
distribution cost 865832 501021 – –
general and administrative expenses 6 3666390 3153982 3834811 4286092
operating profit 12482933 3941996 3834811 4286092
financial costs 8 2647296 608209 1133 1230
financial income 9 1326695 2 116056 393779 145399
profitloss before tax 11162332 5449843 3442165 4141923
tax expense 10 2408443 1432338 – –
profitloss for the year attributable to 8753889 401 7505 3442165 4141923
owners of the parent 6227842 926473 3442165 4141923
noncontrolling interest 2526047 3091032 – –
earnings per share 21
basic earnings per share in pence 2129 0323 1177 1443
diluted earnings per share in pence 2093 0318 1157 1422
other comprehensive income
availableforsale financial assets
 – reclassification to profit and loss 185459 124334 – –
 – current year losses on remeasurement 255542 68293 – –
currency translation differences on translation of foreign 
operations 5076545 6497808 – –
other comprehensive income 5146628 6553849 – –
total comprehensive income for the year attributable to 3607261 10571354 3442165 4141923
owners of the parent 1627114 6750867 3442165 4141923
noncontrolling interest 1980147 3820487 – –
 3607261 10571354 3442165 4141923
the financial statements were authorised for issue by the board of directors on 12 august 2011 and were signed on behalf by
arvind gupta v narayan swami 
chief executive officer chief financial officer overview
business review
corporate governance
financial statements
opg power ventures plc annual report and accounts 201139
consolidated and company statement of financial position
as at 31 march 2011 
all amounts in £ unless otherwise stated
consolidated company
notes 2011 2010 2011 2010
assets 
noncurrent 
property plant and equipment 11 73995296 62629258 – –
investments and other financial assets 12 6941814 5470257 11164 10297
deferred tax asset 10 155512 51505
restricted cash 15 1214699 1333253 – –
total noncurrent assets 82307321 69484273 11164 10297
current 
inventories 14 5605523 1867915 – –
trade and other receivables 13 8576366 3348207 271580 274265
cash and cash equivalents 15 71104280 14168453 64598301 7072048
restricted cash 15 1080877 148641 – –
current tax assets 272105 404196 – –
investments and other financial assets 12 45486243 43379680 59043372 61145096
total current assets  132125394 6331 7092 123913253 68491409
total assets  214432715  132801365 123924417 68501706
  
equity and liabilities 
equity 
equity attributable to owners of the parent 
share capital 51671 42187 51671 42187
share premium 124316524 66943323 124316524 66943323
other components of equity 7803844 10950324 2661206 1206959
retained earningsaccumulated deficit 9050027 2822186 3177675 264490
total 141222066 80758020 123851726 68456959
noncontrolling interest 9807809 7827662 – –
total equity  151029876 88585682 123851726 68456959
liabilities 
noncurrent 
borrowings 18 45254399 30800245 – –
trade and other payables 19 1231509 2261141 – –
deferred tax liability 10 849446 514235 – –
total noncurrent liabilities 47335354 33575621 – –
current 
borrowings 18 5064797 6531797 – –
trade and other payables 19 10716961 3918117 72691 44747
other liabilities 241113 190000 – –
current tax liabilities 44615 148 – –
total current liabilities 16067486 10640062 72691 44747
total liabilities 63402840 44215683 72691 44747
total equity and liabilities  214432715  132801365 123924417 68501706
the financial statements were authorised for issue by the board of directors on 12 august 2011 and were signed on behalf by
arvind gupta v narayan swami 
chief executive officer chief financial officer 40opg power ventures plc annual report and accounts 2011
consolidated statement of changes in equity
for the year ended 31 march 201 1
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 as at 1 april 2010 286989795 42187 66943323 3228892 7721432 2822186 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   139594952 7827662 147422614 
profit for the year     6227842 6227842 2526048 8753889 
currency translation differences     4531791 4531791 544754 5076545
gainslosses on saleremeasurement of availableforsale financial assets    68936   68936 1147 70083
total comprehensive income for the year – – – 68936 3189641 9050027 1627 1 14 1980147 3607262 
balance as at 31 march 2011 351504795 51671 124316524 4614203 3189641 9050027 141222066 9807809 151029876 
balance as at 1 april 2009 as previously reported 286989795 42187 66943323  151716 2667855 3309434 72811084 3996285 76807369 
restatement refer note 26   2125121  722289 1413721 10890 10890  
balance as at 1 april 2009 as restated 286989795 42187 66943323 1973405 1945566 1895713 72800194 4007 1 75 76807369 
employee sharebased payment options   1206959   1206959  1206959 
transactions with owners 286989795 42187 66943323 3180364   74007153 4007 1 75 78014328 
profit for the year     926473 926473 3091032 401 7505 
currency translation differences    5775866  5775866 721942 6497808 
gainslosses on saleremeasurement of availableforsale financial assets   48528   48528 7513 56041 
total comprehensive income for the year – – – 48528 7721432 2822186 6750867 3820487 10571354 
balance as at 31 march 2010 286989795 42187 66943323 3228892 7721432 2822186 80758020 7827662 88585682  overview
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financial statements
opg power ventures plc annual report and accounts 201141
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 as at 1 april 2010 286989795 42187 66943323 3228892 7721432 2822186 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   139594952 7827662 147422614 
profit for the year     6227842 6227842 2526048 8753889 
currency translation differences     4531791 4531791 544754 5076545
gainslosses on saleremeasurement of availableforsale financial assets    68936   68936 1147 70083
total comprehensive income for the year – – – 68936 3189641 9050027 1627 1 14 1980147 3607262 
balance as at 31 march 2011 351504795 51671 124316524 4614203 3189641 9050027 141222066 9807809 151029876 
balance as at 1 april 2009 as previously reported 286989795 42187 66943323  151716 2667855 3309434 72811084 3996285 76807369 
restatement refer note 26   2125121  722289 1413721 10890 10890  
balance as at 1 april 2009 as restated 286989795 42187 66943323 1973405 1945566 1895713 72800194 4007 1 75 76807369 
employee sharebased payment options   1206959   1206959  1206959 
transactions with owners 286989795 42187 66943323 3180364   74007153 4007 1 75 78014328 
profit for the year     926473 926473 3091032 401 7505 
currency translation differences    5775866  5775866 721942 6497808 
gainslosses on saleremeasurement of availableforsale financial assets   48528   48528 7513 56041 
total comprehensive income for the year – – – 48528 7721432 2822186 6750867 3820487 10571354 
balance as at 31 march 2010 286989795 42187 66943323 3228892 7721432 2822186 80758020 7827662 88585682  42opg power ventures plc annual report and accounts 2011
company statement of changes in equity
for the year ended 31 march 201 1
all amounts in £ unless otherwise stated
company 
share capital 
number of 
shares share capital share premium other reserves
foreign currency 
translation 
reserve retained earnings
total shareholders 
equity
balance at 1 april 2010 as previously reported 286989795 42187 66943323 1206959 541456 276966 68456959
restatement refer note 26 541456 541456 –
balance at 1 april 2010 as restated 286989795 42187 66943323 1206959 – 264490 68456959
issue of equity shares 64515000 9484 57373201 – – – 57382685
employee share based payment options – – – 1454247 – – 1454247
transactions with owners 351504795 51671 124316524 2661206 – – 127293891
loss for the year 3442165 3442165
other comprehensive income – – – – – – –
total comprehensive income for the period – – – – – 3 1 77675 3442165
balance as at 31 march 2011 351504795 51671 124316524 2661206 – 3177675 123851727
balance at 1 april 2009 as previously reported 286989795 42187 66943323 – 3135891 1270522 71391922
restatement refer note 26 3135891 3135891 –
balance at 1 april 2009 as restated 286989795 42187 66943323 – – 4406413 71391922
employee share based payment options – – – 1206959 – – 1206959
transactions with owners 286989795 42187 66943323 1206959 – 72598881
loss for the year – – – – 4141923 4141923
other comprehensive income – – – – – –
total comprehensive income for the period – – – – – 264490 4141923
balance as at 31 march 2010 as restated 286989795 42187 66943323 1206959 – 264490 68456959 overview
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financial statements
opg power ventures plc annual report and accounts 201143
company 
share capital 
number of 
shares share capital share premium other reserves
foreign currency 
translation 
reserve retained earnings
total shareholders 
equity
balance at 1 april 2010 as previously reported 286989795 42187 66943323 1206959 541456 276966 68456959
restatement refer note 26 541456 541456 –
balance at 1 april 2010 as restated 286989795 42187 66943323 1206959 – 264490 68456959
issue of equity shares 64515000 9484 57373201 – – – 57382685
employee share based payment options – – – 1454247 – – 1454247
transactions with owners 351504795 51671 124316524 2661206 – – 127293891
loss for the year 3442165 3442165
other comprehensive income – – – – – – –
total comprehensive income for the period – – – – – 3 1 77675 3442165
balance as at 31 march 2011 351504795 51671 124316524 2661206 – 3177675 123851727
balance at 1 april 2009 as previously reported 286989795 42187 66943323 – 3135891 1270522 71391922
restatement refer note 26 3135891 3135891 –
balance at 1 april 2009 as restated 286989795 42187 66943323 – – 4406413 71391922
employee share based payment options – – – 1206959 – – 1206959
transactions with owners 286989795 42187 66943323 1206959 – 72598881
loss for the year – – – – 4141923 4141923
other comprehensive income – – – – – –
total comprehensive income for the period – – – – – 264490 4141923
balance as at 31 march 2010 as restated 286989795 42187 66943323 1206959 – 264490 68456959 44opg power ventures plc annual report and accounts 2011
consolidated and company statement of cash flows
for the year ended 31 march 2011 
all amounts in £ unless otherwise stated
consolidated company
particulars 2011 2010 2011 2010 
cash flows from operating activities 
profitloss for the year after tax 8753889 401 7505 3442165 4141923
income tax expense 2408443 1432338 – –
financial expenses 2647296 608209 – –
financial income 1326695 2116056 393779 145399
sharebased compensation costs 1454247 1206959 1454247 1206959
depreciation 1208461 625324 – –
 15145641 5774279 2381697 3080363
movements in working capital 
increasedecrease in trade and other receivables 5706441 1418191 2684 261052
increasedecrease in inventories 3948601 1636191 – –
increasedecrease in other current assets 2048059 988313 60681 4346
increasedecrease in trade and other payables 5258094 5139417 27945 10135
increasedecrease in other liabilities 2981158 4086706 – –
cash used ingenerated from operations 5719477 12934333 2411749 3355896
interest paid 2647296 608209 – –
income taxes paid net of refunds 1964628 1056450 – –
net cash generated byused in operating activities 1107552 11269674 2411749 3355896
cash flow from investing activities  
acquisition of property plant and equipment  19758114 29017680 – –
sale of property plant and equipment – 2493 – –
increasedecrease in advances –  9610586 2163269 6242553
finance income 782508 1 171217 393779 145399
dividend income 544187 944839 – –
movement in restricted cash 931303 385765 – –
net cash outflow on acquisition of subsidiaries – 1732 –
salepurchase of investments net 3124948  3222067 – –
increasedecrease in land lease deposits  2115283 1260 – –
net cash usedgenerated by investing activities 18353056 39344759 2555317 6387952
cash flows from financing activities 
proceeds from issue of ordinary shares 57382685 – 57382685 –
proceeds from borrowings 16985286 14249387 – –
repayment of borrowings – 5205136 – –
net cash provided by financing activities 74367971 9044251 57382685 –
net increasedecrease in cash and cash equivalents 57122467  19030834 57526253 3032056
cash and cash equivalents at the beginning of the yearperiod 14168453 32319842 7072048 4039992
effect of exchange rate changes on the balance of cash held in foreign 
currencies 186639 879445 – –
cash and cash equivalents at the end of the yearperiod 71104280 14168453 64598301 7072048 overview
business review
corporate governance
financial statements
opg power ventures plc annual report and accounts 201145
1 corporate information
11 nature of operations
opg power ventures plc ‘the company’ or ‘opg’ 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 its 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 and company 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 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 12 august 2011
2 changes in accounting policies 
the group has adopted the following revision and amendments to ias 27 consolidated and separate financial statements revised 2008 
issued by the international accounting standards board which are relevant to and effective for the group’s financial statements for the annual 
period beginning 1 april 2010
ias 27r introduced changes to the accounting requirements for transactions with noncontrolling formerly called ‘minority’ interests and the 
loss of control of a subsidiary the group had already made an accounting policy decision to treat such transactions in a similar manner as 
suggested by the revised standard hence there was no financial impact on these financial statements
21 standards amendments and interpretations to existing standards that are not effective and have not been early adopted by 
the group 
at the date of authorisation of these financial statements certain new standards amendments and interpretations to existing standards have 
been published but are not yet effective and have not been adopted early by the group 
management anticipates that all of the relevant pronouncements will be adopted in the group’s accounting policies for the first period beginning 
after the effective date of the pronouncement information on new standards amendments and interpretations that are expected to be relevant 
to the group’s financial statements is provided below certain other new standards and interpretations have been issued but are not expected to 
have a material impact on the group’s financial statements 
standards and interpretations adopted by the eu as at 31 march 2011
standard description effective for reporting periods starting on or after
ias 24 r related party disclosures 1 january 2011
ifric 14 prepayments of a minimum funding requirement – amendment 1 january 2011
ifric 19 extinguishing financial liabilities with equity instruments 1 july 2010
the management does not expect the application of the other standards to have any material impact on its financial statements when those 
standards become effective the group does not intend to apply any of these pronouncements early
3 summary of significant accounting policies
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 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
notes to the consolidated and company financial statements
for the year ended 31 march 201 1 all amounts in £ unless otherwise stated 46opg power ventures plc annual report and accounts 2011
3 summary of significant accounting policies continued
32 basis of consolidation
the consolidated financial statements incorporate the financial information of opg and its subsidiaries for the year ended 31 march 2011
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 interestsother venturer in the group where there is no 
loss of control are accounted for using the equity method whereby the difference between the consideration paid or received and the book 
value of the share of the net assets is recognised in ‘other reserve’ within statement of changes in equity
33 list of subsidiaries 
details of the group’s subsidiary which are consolidated into the group’s consolidated financial statement are as follows
 voting right  economic interest
subsidiaries immediate parent
country of 
incorporation 2011 2010 2011 2010
caromia holdings limited ‘chl ’ opg cyprus 100 100 – –
gita energy private limited ‘gepl ’
1 2
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’ gepl and 
ghpl
india 6590 6590  99 99
opg renewable energy private limited 
‘opgre’
2 
gepl and 
ghpl
india 22 22 33 33
opg energy private limited ‘opge’
3
 opgpg india 2978 2978 4422 4422
gita power and infrastructure private limited 
‘gpipl ’ 
ghpl india 100 100 9791 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 pursuant to the voting rights agreement entered by gepl with tamil nadu properties and salem food products limited hereinafter collectively referred as ‘investors’ the investors 
agreed that in consideration of gepl agreeing to subscribe for shares in opgre the investors will exercise all voting rights in accordance of the directions of gepl the total voting 
rights held by the investors amount to 5635 further the investors have also appointed gepl as the lawful attorney to exercise their voting rights therefore the combination of the 
directly held interests together with the voting rights of the investors controlled by the group via contracts have the effect that the group controls a majority of voting rights in opge 
accordingly this is considered to be a subsidiary of the group
3 pursuant to the voting rights agreement entered by opgpg with tamil nadu properties and salem food products limited hereinafter collectively referred as ‘investors’ the investors 
agreed that in consideration of opgpg agreeing to subscribe for shares in opge all voting rights in opge will be exercised in accordance with the directions of opgpg the total 
voting rights held by the investors amount to 3688 further the investors also appointed opgpg as the lawful attorney to exercise their voting rights therefore the combination of 
the directly held interests together with the voting rights of the investors controlled by the group via contracts have the effect that the group controls a majority of voting rights in 
opge accordingly this is considered to be a subsidiary of the group
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 £ 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 rs the 
presentation currency of the group is the great britain pound £ as submitted to the aim market 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 finance income or costs 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
notes to the consolidated and company financial statements 
continued
for the year ended 31 march 201 1 all amounts in £ unless otherwise stated overview
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corporate governance
financial statements
opg power ventures plc annual report and accounts 201147
3 summary of significant accounting policies continued
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
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 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 assets
financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire or when the financial asset and 
all substantial risks and rewards are transferred a financial liability is derecognised when it is extinguished discharged cancelled or expires
financial assets and financial liabilities are measured initially at fair value adjusted by transaction 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
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  48opg power ventures plc annual report and accounts 2011
3 summary of significant accounting policies continued
37 financial assets continued
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 
investment in subsidiaries
in the parent company’s financial statements the investments in subsidiaries are accounted for using the cost method with income from the 
investment being recognised only to the extent that the parent company receives distributions from accumulated profits of the investee arising 
after the date of acquisition
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 and listed securities 
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
38 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’
39 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
310 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
notes to the consolidated and company financial statements 
continued
for the year ended 31 march 201 1 all amounts in £ unless otherwise stated overview
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financial statements
opg power ventures plc annual report and accounts 201149
3 summary of significant accounting policies continued
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
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 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 earning 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 50opg power ventures plc annual report and accounts 2011
3 summary of significant accounting policies continued
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 
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
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
notes to the consolidated and company financial statements 
continued
for the year ended 31 march 201 1 all amounts in £ unless otherwise stated overview
business review
corporate governance
financial statements
opg power ventures plc annual report and accounts 201151
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 require 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 
leases  –
 in applying the classification of leases in ias 17  management considers its leases of a power plant by opgre as an operating lease 
arrangement in some cases the lease transaction is not always conclusive and management uses judgement in determining whether the 
lease is an operating lease arrangement that transfers substantially all the risks and rewards incidental to ownership
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 specifically the group make estimates relating to
	 • 	 o t he r 	 f i na n cia l 	 l ia bi l it ie s 	 
  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 company financial statements are initially measured at fair value and 
remeasured at each statement of financial position date see note 39 and note 28
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 is currently defending a lawsuit where the actual outcome may vary from the amount recognised in the financial statements refer 
note on contingent liabilities for details
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 19
claims by the group  –
these accounts include an amount of £2064455 recognised as claim for loss of profit and disclosed as other income this is a provisional 
amount based on what is reliably measurable at 31 march 2011 for recoverability of loss of revenue from operations due to delay in 
commissioning and nonachievement of guaranteed performance parameters at a plant owned by opgpg the claims have been 
recognised where such payments are certain to be recovered under the agreements with the contractor
actual results can differ from estimates  52opg power ventures plc annual report and accounts 2011
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 £25790162 2010 £4312446
6 depreciation costs of inventories and employee benefit expenses included in the consolidated and company’s statements of 
comprehensive income
a depreciation and costs of inventories included in the consolidated statements of comprehensive income
consolidated company
 2011 2010 2011 2010
included in cost of revenue
fuel costs 14931913 2809587 – –
depreciation 1145380 429683 – –
for the group depreciation included in general and administrative expenses amount to £63081 2010 £195461
for the company depreciation included in general and administrative expenses amount to £nil 2010 £nil
b employee benefit expenses forming part of general and administrative expenses are as follows
 consolidated company
 2011 2010 2011 2010
salaries and wages 781534 676553 148153 122724
employee benefit costs 60083 58205 – –
employee stock option 1454247 1206959 1454247 1206959
total 2295864 1941717 1602400 1329683
c auditor’s remuneration for audit services amounting to £35000 2010 £35612 is included in general and administrative expenses
d foreign exchange lossgain included in the general and administrative expensesother income is as follows
consolidated company
 2011 2010 2011 2010
foreign exchange lossgain 113052 114430 1903425 2795092 
total 113052 114430 1903425 2795092 
7 other income
a other income comprises of
consolidated company
 2011 2010 2011 2010
sale of coal 206203 160274 – –
compensation for loss of profit 1888294 – – –
miscellaneous incomeexpense 443372 82491 – –
total 2537869 242765 – –
the item ‘compensation for loss of profit’ includes £1021691 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
notes to the consolidated and company financial statements 
continued
for the year ended 31 march 201 1 all amounts in £ unless otherwise stated overview
business review
corporate governance
financial statements
opg power ventures plc annual report and accounts 201153
8 finance costs
finance costs comprises of
consolidated company
 2011 2010 2011 2010
interest expenses on loans and borrowings 2271354 362302 – –
loss on disposal of financial instruments 255542 131334 – –
other finance costs 120400 114573 1133 1230
total 2647296 608209 1133 1230
interest expenses on loans and borrowings includes interest expenses on financial liability at amortised cost of £2271354 2010 £362302 in 
consolidated financial statement 
9 finance income
the finance income comprises of
consolidated company
 2011 2010 2011 2010
interest income
– bank deposit 239872 953859 7850 10660
– loans and receivables 162340 210818 13827 134739
dividend income 544187 944524 – –
other finance income 372106 – 372102 –
unwinding of discount on security deposits 8190 6855 – –
total 1326695 2 116056 393779 145399
10 tax expenseincome
the major components of income tax expense for the years ended 31 march 2011 and 2010 
consolidated statement of comprehensive income
2011 2010
current tax 2105976 1416412
deferred tax 302467 15926
tax expense reported in the statement of comprehensive income 2408443 1432338
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 
2011 and 2010 is as follows
 2011 2010 
accounting profit before taxes 11162332 5449843 
enacted tax rates 3245 3399
tax on profit at enacted tax rate 3621619 1852402 
differences on account mat rate 1596807 420064 
items taxed at zero rate 417480 – 
others 33849 – 
actual tax expense 2408443 1432338 
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 the operations
the group is subject to the provisions of mat under the indian income taxes for the year ended 31 march 2011 and 2010 accordingly the 
group calculated the tax liability for current taxes in india after considering mat 
the group has carried forward credit in respect of mat tax liability paid to the extent it is probable that future taxable profit will be available 
against which such tax credit can be utilised 54opg power ventures plc annual report and accounts 2011
10 tax expenseincome continued
deferred income tax for the group at 31 march 2011 and 2010 relates to the following
2011 2010
deferred income tax assets
lease transactions and others 30294 –
marktomarket of availableforsale financial assets 125218 51505
155512 51505
deferred income tax liabilities
difference in depreciation on property plant and equipment 849446 514235
849446 514235
deferred income tax liabilities net 693934 462730
movement in temporary differences during the year
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 – 73712 – 125218 
462730 302467 73712 2450 693934
particulars
as at  
1 april 2009 
recognised 
in income 
statement 
recognised in 
equity 
translation 
adjustment 
as at  
31 march 2010 
property plant and equipment and others 446451 15926 – 51857 514235
marktomarket gain loss on availableforsale financial assets 60909 – 7482 1922 51505 
385542 15926 7482 53779 462730
in assessing the reliability of deferred income tax assets management considers whether it is more likely than not that some portion or all of the 
deferred income tax assets will be realised the ultimate realisation of deferred income tax assets is dependent upon the generation of future 
taxable income during the periods in which the temporary differences become deductible the amount of the deferred income tax 
assets considered realisable however could be reduced in the near term if estimates of future taxable income during the carry forward period 
are reduced
shareholders resident outside the isle of man will not suffer any income tax in the isle of man on any income distributions to them further 
dividends are not taxable in india in the hands of the recipient however the 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 2011 and 31 march 2010 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 net
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 2009 77 44639 7675718 47282 124063 29174655 44766356 
– additions 974219 30664 43231 25414 15581342 16654870 
– disposalstransfers –  145870 –  1 7983 –  163854
– exchange adjustments 709877 710692 4381 11497 2703627 414007 4 
as at 31 march 2010 9428735 8271204 94894 142991 47459624 65397446 
       
as at 1 april 2010 9428735 8271204 94894 142991 47459624 65397446 
 – additions 444197 42059353 49460 71375 9635644 52260030 
 – disposalstransfers 53270 – – –  35578462 35631732
 – exchange adjustments 614406 538929 6233 9318 3092620 4261505
as at 31 march 2011 9205256 49791628 138121 205048 18424186 77764239 
notes to the consolidated and company financial statements 
continued
for the year ended 31 march 201 1 all amounts in £ unless otherwise stated overview
business review
corporate governance
financial statements
opg power ventures plc annual report and accounts 201155
11 property plant and equipment net continued
b accumulated depreciation 
particulars
 land and 
buildings  power stations 
other plant and 
equipment vehicles 
 assets under 
construction  total 
as at 1 april 2009 159867 1833000 19537 22391 – 2034795 
 – additions 24948 555440 18736 26200 – 625324 
 – disposals  5600 –  13187 –  18787
 – exchange adjustments 22988 96086 4 110 3672 – 126856 
as at 31 march 2010 207803 2478926 42383 39076 – 2768188 
       
as at 1 april 2010 207803 2478926 42383 39076 – 2768188 
– additions 34166 1 111445 27228 35580 – 1208419 
– disposals – – – – – – 
– exchange adjustments 14313 186610 3393 3350 – 207664
as at 31 march 2011 227656 3403761 66218 71306 – 3768943 
c net block 
particulars
 land and 
buildings  power stations 
other plant and 
equipment vehicles 
 assets under 
construction  total 
as at 31 march 2010 9220932 5792278 52511 103915 47459624 62629258 
as at 31 march 2011 8977600 46387867 71903 133742 18424186 73995296 
the net book value of land and buildings block comprises of
2011 2010
freehold 8203467 8359192
buildings 774133 861740
total 8977600 9220932
property plant and equipment with a carrying amount of £55365467 2010 £15013210 is subject to security restrictions refer note 18
12 investments and other financial assets
consolidated company
 2011 2010 2011 2010
a current
availableforsale financial assets  8851675 12977604 – –
loans and receivables
 – advance to suppliers 2377033 33819 – –
 – capital advances 31286228 23339592 – –
 – other advances 2971307 7028665 59043372 61145096
total 45486243 43379680 59043372 61145096
 
b noncurrent 
investments in subsidiaries – – 4142 2410
loans and receivables
 – prepayments 5108701 3618405 7022 7887
 – lease deposits 1065537 961213 – –
 – other advances 767576 890639 – –
total 6941814 5470257 11164 10297
availableforsale investment – quoted shortterm mutual fund units 
the group has investments in mutual fund units the fair value of the quoted mutual fund instruments are determined by reference to published 
data 56opg power ventures plc annual report and accounts 2011
12 investments and other financial assets continued
loans and receivables current
advance to suppliers include the amounts paid as advance for supply of fuel to the group other advances of the group primarily includes duty 
drawback receivable and transmission charges receivable amounting to £2169718 2010 £157383 for the previous year gepl and ghpl 
step down subsidiaries of the company had advanced an amount of £3438102 as inter corporate loan also an amount of £2806644 was 
receivable from the bank on sale of availableforsale investments capital advances comprise of payment made to epc contractors for 
construction of assets and advances paid for purchase of capital equipments the management expects to realise these in the next one year
loans and receivables of the company primarily includes noninterestbearing intercorporate deposits of £58981826 2010 £61145096 
being the loan advanced by the company to caromia holdings limited by the company which is repayable on demand
investment in subsidiaries
investment refers investments in subsidiaries in the company financial statements chl is a 100 held subsidiary of the company in the 
previous year gepl and ghpl were 100 subsidiaries of the company the carrying amounts disclosed above are maximum possible credit 
risk exposure in relation to these financial assets
13 trade and other receivables
consolidated company
 2011 2010 2011 2010
current
trade receivables 6518201 2478584 – –
unbilled revenues 99425 255216 – –
other receivables  1958740 614407 271580 274265
total 8576366 3348207 271580 274265
trade receivables are noninterest bearing and are generally due within 14 days terms out of the above £8576366 2010 £3348207 has 
been pledged for security as borrowings refer note 18 as at 31 march 2011 trade receivables of £nil 2010 £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
2011 6518201 5376841 392754 142336 606270
2010 2478584 986454 300530 754066 437534
14 inventories
consolidated company
 2011 2010 2011 2010
coal and fuel 5368042 1738189 – –
stores and spares 237481 129726 – –
total 5605523 1867915 – –
out of the above £4708191 2010 £129725 has been pledged for security as borrowings refer note 18
15 cash and cash equivalents
cash and shortterm deposits comprise of the following
consolidated company
 2011 2010 2011 2010
cash at banks and on hand 69884386 7359657 64598301 7072048
shortterm deposits 1219894 6808796 – –
total 71104280 14168453 64598301 7072048
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 which have been pledged by the group in order to fulfil collateral requirements refer note 18 
notes to the consolidated and company financial statements 
continued
for the year ended 31 march 201 1 all amounts in £ unless otherwise stated overview
business review
corporate governance
financial statements
opg power ventures plc annual report and accounts 201157
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 share capital of 351504795 equity shares 2010 286989795 at par value of £0000147 2010 £0000147 
per share amounting to £51671 2010 £42187
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 reserve represents the difference between the consideration paid and the adjustment to net assets on change of controlling interest 
without change in control other reserves also includes any costs related with share options granted and gainlosses on remeasurement or 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 £1 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 £1454207 2010 £1206959 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 2011 2010
at 1 april 22524234 –
granted – 22524234
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 was 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 2010 £060 dividend yield of nil 2010 nil an expected option life of 421 years 2010 371 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 58opg power ventures plc annual report and accounts 2011
18 borrowings
the borrowings comprise of the following
interest rate  
range  final maturity 2011 2010 
financial liabilities measured at amortised cost 1230–1462 march 2023 45254399 30800245
shortterm loans 1230–1462 march 2012 3367529 3882815
cash credit and working capital arrangements 1294930 2648982
lc bills discounting and buyers’ credit facility march 2012 402338 –
total  50319196 37332042
total debt of £50319196 2010 £37 332042 is secured as follows
financial liabilities measured at amortised cost of the group is fully secured on the property plant and other movable current assets of  –
subsidiaries which have availed such loans and by a personal guarantee by the promoter
the shortterm loan and cash credits taken by the group is secured against hypothecation of deposits and margin money as collateral in  –
addition to the same a director has given personal guarantee for the same
letter of credit ‘lc’ bills discounting buyers’ credit facility cash credit and other working capital facilities is fully secured against margin  –
money deposits and other fixed deposits of the respective entities availing the loan facilities
longterm project finance loan contains certain restrictive covenants for the benefit of the facility providers and primarily requires the group to 
maintain specified levels of certain financial ratios and operating results the terms of the other borrowings arrangements also contain certain 
restrictive covenants primarily requiring the group to maintain certain financial ratios as of 31 march 2011 the group has met all the relevant 
covenants 
the fair value of borrowings at 31 march 2011 was £50319196 2010 £37332042 the fair values have been calculated by discounting cash 
flows at prevailing interest rates
the borrowings mature as follows
consolidated
 2011 2010
current liabilities 
amounts falling due within one year 5064797 6531797
noncurrent liabilities
amounts falling due after one year but not more than five years 24694855 29735967
amounts falling due in more than five years 20559544 1064278
total 50319196 37332042
19 trade and other payables 
consolidated company
 2011 2010 2011 2010
current
trade payables 9499104 3224109 72691   44747 
creditors for capital goods 314977 504283
other payables 902880 189725
total 10716961 3918117 72691 44747
noncurrent 
trade payables 1231509 2261141 – –
total 1231509 2261141 – –
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 payable comprises retention money which will be settled after completion and successful installation of the projects –
notes to the consolidated and company financial statements 
continued
for the year ended 31 march 201 1 all amounts in £ unless otherwise stated overview
business review
corporate governance
financial statements
opg power ventures plc annual report and accounts 201159
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
opg energy private limited subsidiary
gita power and infrastructure private limited subsidiary
key management personnel
name of the party nature of relationship
arvind gupta chief executive
v narayan swami finance director
munish c gupta chairman
martin gatto nonexecutive director
ravi gupta nonexecutive director
p michael grasby nonexecutive director
related parties with whom the group had transactions during the period
name of the related party nature of relationship
sri hari vallabhaa 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 vinimay p ltd 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 and generation private 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  60opg power ventures plc annual report and accounts 2011
20 related party transactions continued
related party transactions during the year 
the following table provides the total amount of transactions that have been entered into with related parties and the outstanding balances as 
the end of the relevant financial years
name of the party 2011 2010 
summary of transactions with related parties  
kanishk steel industries limited  
a sharing of power 495323 790753
b cost of power generated 24607 8946
c lease deposit 1308553 –
d lease rent paid 148478 236226
e reimbursement of expenses 10851 16015
salem food products limited  
a sharing of power 23757 –
b interest received 66130 89660
c receipt on account of repayment of loan 137742 –
sri rukmani rolling mill private limited  
a sharing of power 35469 
b sale of coal 1889 –
gita devi  
a rent paid – 2100
b reimbursement of expenses 1043 –
ravi gupta 
a remuneration 25000 25000
gita energy and generation private limited 
a advance paid 2403604 1719051
gita power and infrastructure private limited  
a advance paid – 3394260
name of the party 2011 2010
summary of balances with related parties  
salem food products limited  
a loan outstanding 759494 890639
b trade and other receivables – 970
kanishk steel industries limited  
a trade and other receivables 331769 632955
b lease deposit outstanding 4611201 3532783
sri rukmani rolling mill private limited  
a trade and other receivables 28028 –
1  outstanding balances at the yearend are unsecured interestbearing in case of loans and intercorporate deposits and other loans and advances 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 2011 the group has not recorded any impairment of receivables relating to amounts owed by related parties 2010 £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
2  there are no other longterm benefits and termination benefits which are payable to the key management personnel
3  the shortterm loan and cash credits taken by the group is secured against hypothecation of deposits and margin money as collateral in addition to the same a director has given 
personal guarantee for the same
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 2010 or 2011
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 for the group and the company as follows
particulars 2011 2010
weighted average number of shares used in basic eps 292469151 286989795
shares deemed to be issued for no consideration in respect of sharebased payments 5104499 4383911
weighted average number of shares used in diluted eps 297573650 291373706
notes to the consolidated and company financial statements 
continued
for the year ended 31 march 201 1 all amounts in £ unless otherwise stated overview
business review
corporate governance
financial statements
opg power ventures plc annual report and accounts 201161
22 director’s remuneration
name of directors 2011 2010
arvind gupta 169109 157480
narayan swami 50734 47244
martin gatto 25000 25000
michael grasby 25000 25000
munish c gupta 25000 25000
ravi gupta 25000 25000
total 319843 304724
23 commitments and contingencies
operating lease commitments
the group leases land and a functional plant under operating leases the leases typically run for a period of 15 to 30 years with an option to 
renew the lease after that date none of the leases includes contingent rentals
noncancellable operating lease rentals are payable as follows
2011 2010
not later than one year 339703 236537
later than one year and not later than five years 1358810 946149
later than five years 2813221 2427833
total 4511734 3610519
during the year ended 31 march 2011 £339703 2010 £236537 was recognised as an expense in the statement of comprehensive income in 
respect of operating leases
capital commitments
during the year ended 31 march 2011 the group entered into a contract to purchase property plant and equipment for £92009451 2010 
£142629414 
guarantees
lc and bank guarantee are as disclosed below
particulars
as at  
31 march 2011  
group
as at  
31 march 2010  
group
towards outstanding lc 9185515 5674858
towards outstanding bank guarantees 3293417 7814483
contingent liabilities
1 as per tamil nadu tax on consumption or sale of electricity act 2003 every licensee shall collect and pay every month to the government 
in the prescribed manner a tax on the electricity sold during the previous month at the rates specified the operating companies of the 
group have during the year made sales to nongovernment customers amounting to £ 10067 052 which is liable to electricity tax however 
no tax has been collectedremitted by the company to the government the company based on a legal opinion is advised that it is the 
obligation of the consumer to pay the tax to the government on such sales in addition the company is advised that in case of any claim by 
the government on such sales the same would be charged back to the customers however considering the uncertainty the company has 
disclosed this as a contingent liability
2 opge had entered into a power sharing agreement with precot meridian ltd ‘pml ’ on 30 november 2002 and further had entered into a 
memorandum of understanding on 30 march 2003 in terms of which pml had invested £46832 in opge towards equity investment and 
£152894 towards 13 cumulative redeemable preference shares under this mou opge had agreed to supply 2 mw of pro rata power of 
17 5 mw on 29 july 2005 opge redeemed the preference share in full and subsequently with approval of pml converted the equity 
shares into class – c shares which have no voting rights subsequently from april 2008 opge stopped its power supply to pml since in 
the opinion of opge the obligation of the company to supply power to pml ceased with the redemption of the preference shares and 
subsequent reclassification of its shares into nonvoting shares however pml has raised a demand through arbitration for an amount of 
£786068 towards the additional cost incurred by pml in getting power through other sources for the period from april 2008 to october 2010 
and £275485 for litigation fee along with 18 interest against the company vide its claim on december 26 2010 under the arbitration  
conciliation act 1996 and the matter is pending before the arbitration tribunal opge has sought the opinion of its legal counsel and believes 
that there is no merit in the claim of pml however considering the uncertainty the claim by pml is disclosed as contingent liability 62opg power ventures plc annual report and accounts 2011
24 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 hold investments designated at fair value 
through profit or loss and availableforsale categories 
the group is exposed to market risk credit risk and liquidity risk 
the group’s senior management oversees the management of these risks the group’s senior management is supported by a financial risk 
committee that advises on financial risks and the appropriate financial risk governance framework for the group the financial risk committee 
provides assurance to the group’s senior management that the group’s financial risktaking activities are governed by appropriate policies and 
procedures and that financial risks are identified measured and managed in accordance with group policies and group risk appetite 
the board of directors reviews and agrees policies for managing each of these risks which are summarised below 
market risk
market risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because of changes in market prices market 
prices comprise three types of risk interest rate risk currency risk and other price risk such as equity risk financial instruments affected by 
market risk include loans and borrowings deposits availableforsale investments and investment at fair value through profit or loss
the sensitivity analyses in the following sections relate to the position as at 31 march 2011 and 31 march 2010
the following assumptions have been made in calculating the sensitivity analyses
i the sensitivity of the statement of comprehensive income is the effect of the assumed changes in interest rates on the net interest income for 
one year based on the floating rate borrowings held at 31 march 2011 all other variables being held constant these changes are considered 
to be reasonably possible based on observation of current market conditions
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 2011 and 31 march 2010 the group had no interest rate derivatives
the sensitivity analyses have been prepared on the basis that the amount of net debt the ratio of fixed to floating interest rates of the debt as at 
31 march 2011 
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 2011 would decrease or increase by £143355 2010 £162315 increasedecrease in interest rates would have an immaterial impact 
on the group’s equity
increasedecrease in interest rates would have no impact on the company’s equity as there are no borrowings
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 our assets are located in india where the indian rupee is the 
functional currency for our subsidiaries currency exposures also exist in the nature of capital expenditure and services denominated in 
currencies other than the indian rupee
currency fluctuations may have a large impact on our group financial results we are subject to currency risks affecting the underlying cost base 
in the operating subsidiary companies and also the translation of unit cash costs profit or loss and the statement of financial position including 
non£ denominated borrowings in the consolidated financial statements where the functional currency is not the £ 
the group’s exposure to foreign currency arises where a group company holds monetary assets and liabilities denominated in a currency different 
to the functional currency of that entity with indian rupee being the major foreign currency exposure of the group’s main operating subsidiaries 
as at 31 march 2011 as at 31 march 2010
currency financial assets financial liabilities financial assets financial liabilities
rs 4428878407 3969312333 3333877427 2538659229
us – 11897358 – –
notes to the consolidated and company financial statements 
continued
for the year ended 31 march 201 1 all amounts in £ unless otherwise stated overview
business review
corporate governance
financial statements
opg power ventures plc annual report and accounts 201163
24 financial risk management objectives and policies continued
set out below is the impact of a 10 change in the rs and us on profit arising as a result of the revaluation of the group’s foreign currency 
financial instruments
as at 31 march 2011 as at 31 march 2010
currency closing rate
effect of 10 
strengthening 
of £ on net 
earnings closing rate
effect of 10 
strengthening 
of £ on net 
earnings
rs 7260 642936 6787 1065162
us 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 the 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 £122022795 
2010 £55266730 
the group has exposure to credit risk from a limited customer group on account of supply of power however 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’scompany’s maximum exposure for financial guarantees are noted in note 23 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 
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 2011
current noncurrent
on demand within 12 months 1–5 years later than 5 years total
borrowings 9644576 37494296 1 7733219 64872091
trade and other payables 10544783 1231509 – 11776292
other current liabilities 241 113 – – 241 113
total 20430472 38725805 17733219 76889496
the company’s contractual undiscounted cash flows payable under financial liabilities as at 31 march 2011 is £72691 2010 £44747 
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 the 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 –
the group manages its capital structure and makes adjustments to it in light of changes in economic conditions to maintain or adjust the 
capital structure the group may adjust the dividend payment to shareholders return capital to shareholders or issue new shares  64opg power ventures plc annual report and accounts 2011
24 financial risk management objectives and policies continued
no changes were made in the objectives policies or processes during the years end 31 march 2011 and 2010
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 spvs in the group engaged in the business of captive power generation are 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
2011 2010 
total equity 151167738 88585682 
less cash and cash equivalents 71104280 14168453
capital 80063458 74417229 
total equity 151167738 88585682 
add borrowings including buyer’s credit 50319196 37332042 
overall financing 201486934 125917724 
capital to overall financing ratio 040 059 
25 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
2011 2010 2011 2010
financial assets
cash and cash equivalents
1
71104280 14168453 71104280 14168453
availableforsale quoted instruments
4
8851675 12977604 8851675 12977604
loans and receivables
4
36634568 30402076 36634568 30402076
current trade and other receivables
1
8576366 3348207 8576366 3348207
noncurrent trade and other receivables
2
6941814 5470257 6941814 5470257
132108703 66366597 132108703 66366597
financial liabilities
longterm ‘project finance’ loans
3
45254399 30800245 45254399 30800245
shortterm loans
1
4662459 6531797 4662459 6531797
lc bill discounting and buyers’ credit facility
1
402339 – 402339 –
current trade and other payables
1
10544783 3918117 10544783 3918117
noncurrent trade and other payables
3
1231509 2261141 1231509 2261141
62095489 43511300 62095489 43511300
set out below is a comparison by class of the carrying amounts and fair value of the company’s financial instruments that are carried in the 
financial statements 
 carrying amount fair value
2011 2010 2011 2010
financial assets
cash and short term deposits
1
64598301 7072048 64598301 7072048
financial assets at fair value through profit or loss – – – –
– designated at fair value through profit or loss
3
– – – –
current loans and other receivables
2
59043372 61145096 59043372 61145096
noncurrent loans and other receivables
2
11164 10297 11164 10297
123652837 68227441 123652837 68227441
financial liabilities
financial liabilities at fair value through profit or loss
3
– – – –
financial guarantee contracts
1
– – – –
current trade and other payables
1
72691 44747 72691 44747
 72691 44747 72691 44747
notes to the consolidated and company financial statements 
continued
for the year ended 31 march 201 1 all amounts in £ unless otherwise stated overview
business review
corporate governance
financial statements
opg power ventures plc annual report and accounts 201165
25 summary of financial assets and liabilities by category and their fair values continued
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 2011 the carrying amounts of such receivables net of allowances approximate their fair values 
3 the fair value of unquoted equity instruments at fair value through profit and loss account loans from banks and other financial indebtedness obligations under finance leases 
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 and other financial assets held for trading purposes are derived from quoted market prices in active markets if available in certain cases fair 
value is estimated using an appropriate valuation technique
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 equities – – – –
quoted equities 8836450 – – 8836450
total 8836450 – – 8836450
there were no transfers between level 1 and 2 in the period
26 restatement
a  during the year the group identified that negative goodwill arising on common control transactions during financial year ended 31 march 
2009 was presented through profit and loss which was not in accordance with the accounting policy for common control transactions as 
adopted by the group which requires identified negative goodwill on common control transactions to be routed through equity further on a 
recomputation of the reported negative goodwill the group identified an error in the model used which resulted in a reduction in the reported 
negative goodwill to the extent of £722289 for the year ended 31 march 2009 the impact of this error was an understatement in the 
reported other reserves as at 31 march 2009 by £2125121 with a corresponding overstatement in retained earnings by £1413721 and in 
translation reserve by £722289 the impact on the statement of comprehensive income was a reduction in the reported profits for the year 
ended march 2009 by £1413721 
b  the company has in previous years accounted for exchange difference arising on translating monetary items at reporting date through other 
comprehensive income which needs to be brought in conformity with ias 21 which requires such exchange differences to be recognised in 
profit or loss during the year ended 2010 the company accounted an amount of £2594435 2009 £3135891 through other 
comprehensive income as foreign currency translation reserve which has been restated and recognised through the profit and loss account 
resulting in an increase in retained earnings as on 1 april 2009 by £3135891 and a decrease in profit for the year ended 2010 by £2594435
on account of the above revisions and a change in the method of presentation the cash flow statements have been restated for the year ended 
march 2010 considering that the above revisions only impact the components within equity with no impact on other balances of the statement 
of financial position as at 31 march 2009 the group has not presented a third statement of financial position at the beginning of the earliest 
comparative period as required by ias1  66opg power ventures plc annual report and accounts 2011
27 reclassification of the consolidated financial statements for the prior years
prior year’s figures in the consolidated financial statements have been regrouped and reclassified wherever necessary to conform to the current 
year’s figures the group has reclassified the following items which do not have any impact upon the income statement cash flows equity and 
financial position and performance of the group
capital advances relating to construction of power stations amounting to £21160152 which was disclosed as noncurrent has now been 
reclassified to investments and other financial assets current
capital work in progress relating to construction of power stations amounting to £2387 533 which was disclosed as noncurrent has now been 
reclassified to investment and other financial assets 
restricted cash amounting to £1333253 which was disclosed as current has been reclassified to noncurrent
financial assets amounting to £259123 has been reclassified to trade and other receivables
current tax assets £2003214 and provision for taxation £1599018 which were shown on a gross basis have been disclosed on a net basis
the group has made significant presentational changes in the income statement to further improve comparability of its results to those of other 
power sector companies and to allow readers to make a more accurate assessment of the sustainable earnings capacity of the group
operating revenue £1357 189 and cost of generation £1196914 – relating to purchase and sale of coal have been regrouped to other income 
other expenses £495104 employee costs £1373055 depreciation £195461 preoperative expenses £1171626 have been reclassified to 
general and administration expenses
other gains and losses £1028559 has been reclassified to other income £84035 and to finance income £944524 
an amount of £46252 has been reclassified from finance income to finance expense 
28 subsequent events
opgpg acquired certain assets of ms bellary steels  alloys ltd which consist primarily of 120 acres of land with partially completed 12 mw 
power plant for a consideration of £889m rs 649m the company was not operational for the last two years and was under liquidation 
subsequent to the reporting date the group having paid the bid price in full has acquired possession of the same the group has assessed 
this transaction as an acquisition of assets and not as a acquisition of business in the absence of any process which is part of a set of integrated 
activities to create any output 
the financial statements were authorised for issue by board of directors on 12 august 2011 and were signed on behalf by
arvind gupta v narayan swami
chief executive officer chief financial officer
notes to the consolidated and company financial statements 
continued
for the year ended 31 march 201 1 all amounts in £ unless otherwise stated overview
business review
corporate governance
financial statements
opg power ventures plc annual report and accounts 201167
corporate directory
nominated advisor and broker
cenkos securities plc
678 tokenhouse yard 
london 
ec2r 7as
financial pr
tavistock communications
131 finsbury pavement 
london 
ec2a 7as
administrators and company secretary
ioma fund and investment management limited
ioma house 
hope street 
douglas 
isle of man 
im1 1ap
auditors
grant thornton
third floor 
exchange house 
5458 athol street 
douglas 
isle of man 
im1 1jd
legal advisors
dougherty quinn
the chambers 
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douglas 
isle of man 
im1 2pu
registrars
capita registrars isle of man limited
3rd floor 
exchange house 
5458 athol street 
douglas 
isle of man 
im1 1jd 68opg power ventures plc annual report and accounts 2011
definitions and glossary
act the isle of man companies act 2006
agm annual general meeting
board the board of directors of opg power ventures plc
cagr compound average growth rate
cea central electricity authority
cil coal india limited
company or opg or parent opg power ventures plc
current quarter the quarter commencing from 1 july 2011 to 30 september 2011
ebitda earnings before interest tax depreciation and amortisation
electricity act the 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
gm annual general meeting
gmdc gujarat mineral development corporation
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
kwh kilowatt hour
lse london stock exchange plc
mou memorandum of understanding
mw mega watt
mwh mega watt hour
om operating and management
ppa power purchase agreement
psa power supply agreement
roe return on equity
rupeesinr rs indian rupee the lawful currency of india
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
uk llp united kingdom limited liability partnership
us or us or  us dollars the lawful currency of the us 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 aim
overview
01 highlights
02 our markets
04 our operations and projects
06 our strategy and kpis
08 capacity growth profile
10 chairman’s statement
business review
12 principal risks
14 chief executive’s statement
16 operational review
20  financial review
22 responsible growth
24 board of directors
corporate governance 
26 corporate governance 
30 directors’ remuneration report
34  directors’ report
36  statement of directors’ responsibilities  
in respect of the accounts
financial statements
37  independent auditors’ report to the 
members of opg power ventures plc
38  consolidated and company statement  
of comprehensive income
39  consolidated and company statement  
of financial position
40  consolidated statement of changes  
in equity
42 company statement of changes in equity
44  consolidated and company statement of 
cash flows
45  notes to the consolidated and company 
financial statements
67 corporate directory
68 definitions and glossary
certain statements included in this annual report and accounts contain forwardlooking information concerning the group’s 
strategy operations financial performance or condition outlook growth opportunities or circumstances in the countries 
sectors or markets in which the group operates by their nature forwardlooking statements involve uncertainty because they 
depend on future circumstances and relate to events not all of which are within the group’s control or can be predicted by 
the group although the group believes that the expectations reflected in such forwardlooking statements are reasonable 
no assurance can be given that such expectations will prove to have been correct actual results could differ materially from 
those set out in the forwardlooking statements for a detailed analysis of the factors that may affect our business financial 
performance or results of operations please refer to the principal risks and uncertainties included in this annual report and 
accounts no part of these results constitutes or shall be taken to constitute an invitation or inducement to invest in the 
group or any other entity and must not be relied upon in any way in connection with any investment decision the group 
undertakes no obligation to update any forwardlooking statements
cover covered coal shed at chennai with 40000t capacity opg power ventures plc annual report and accounts 2011
a platform
for growth
opg power ventures plc
annual report and accounts 2011 
wwwopgpower com
opg power ventures plc
117 sir p s sivasamy salai
st ebba’s avenue
mylapore
chennai 600 004
india
t 910 44 4291121442911222
f 910 44 42911209
e infoopgpowerorg
registered office
ioma house
hope street
douglas
isle of man 
im1 1ap


Summary:
 14opg power ventures plc annual report and accounts 2011
 
chief executive’s 
statement
milestone year provides solid 
platform for growth
the year ended 31 march 2011 was a 
landmark year for opg with the successful 
commissioning of the group’s first major 
project of 77 mw the chennai i plant is 
now operating consistently at load factors 
of around 90 providing strong cash flow 
to the group and underpinning our track 
record of successful project delivery
the oversubscribed equity raising of c£60m 
gross of transaction fees in february 2011 
demonstrated support from the company’s 
stakeholders and provides capital to fund 
a 629 mw pipeline of projects under 
construction and development combined 
with the 113 mw of existing operational 
capacity this total pipeline has increased 
substantially from the initial 377 mw that 
we committed to at our ipo in may 2008 
we remain on track to deliver our target 
of 1250 mw of capacity by 2015
profitable operations and 
strong cash generation
output levels and operations at chennai i 
were successfully stabilised in august 2010 
and the plant’s operational performance 
has been in line with expectations in the six 
months to june this year the plant performed 
at an average monthly output level of c85
profit before tax was up 105 to £1116m 
benefiting from a partial contribution 
from chennai i which began commercial 
operations in august 2010 opg’s strong 
results for the year ended march 2011 are 
reflective of the group captiveopen market 
sales strategy and the profit from continuing 
operations at 39 of revenue is among 
the highest in the industry average price 
realised for the year was rs 495kwh
in line with our stated strategy we intend 
to continue to utilise cash generated from 
operations principally to fund growth 
and optimisation opportunities
projects remain ontrack 
despite local challenges
the group’s current total capacity stands 
at 113 mw inclusive of the additional 6 mw 
of capacity recently added to the gas fired 
power station at mayavaram a significant 
increase from the 194 mw of operating 
capacity at the time of the ipo in may 
2008 the chennai development projects 
are progressing well the accelerated 
commissioning of the second 77 mw unit 
chennai ii for 2012 is set to increase the 
group’s total operating capacity to 190 
mw and further progressive increases are 
expected thereafter to achieve 742 mw by 
2013 some local objections faced in the 
wake of environmental clearances for the 300 
mw kutch project are now under resolution 
and we are awaiting formal approval from 
the ministry of environment and forests 
new delhi the project which is fully funded 
remains on track for commissioning in 2013
also during the year opg signed an mou 
with the government of gujarat to build 5400 
mw of capacity by 2018 details of specific 
projects and an implementation schedule are 
currently in development and we look forward 
to reporting on further progress in due course
during the year and since then the group 
continues to operate in an environment 
of elevated coal prices administrative 
challenges in obtaining key approvals and 
higher interest costs however relative to 
our peer group we believe our margins and 
our continued growth demonstrate that the 
group is well positioned to deal with such 
challenges through our local relationships and 
the flexibility incorporated into our business 
model and plant configurations we have 
also incorporated key lessons from previous 
developments into subsequent projects 
and as a result we continue to be confident 
that the company can deliver a profitable 
growth pipeline on time and within budget
mr arvind gupta
managing director and ceo
project commissioning schedule mw
calendar year total mw 2012 2013 2014 2015
operations
mayavaram 26
waste heat 10
chennai i 77
development
chennai ii 77 77
chennai iii 160 160
chennai iv 80 80
bellary 12 12
gujarat 300 300
pipeline
pipeline 508 508
cumulative capacity 1250 190 742 742 1250 opg power ventures plc annual report and accounts 201115 
overview
business review
corporate governance
financial statements
indian power market remains in deficit
despite volatility elsewhere in the global 
economy india’s gdp is expected to continue 
to grow at around 8 in the coming years 
resulting in annual power demand growth of 
10 india’s total planned capacity additions 
as at 31 march 2011 were only 52 of the 
targeted 78000 mw and there remains an 
expected shortfall of 30–35 versus the target 
by march 2012 this trend points towards 
continuing and increasing power production 
deficits which currently run at about 10
with the planned additional supply likely 
to fall acutely short of the 300–315 gw 
required over the next five years and 
given the imperative for a correction in 
pricing by state utilities we believe this 
supply constrained environment will prevail 
and power prices will remain firm
opg maintains flexibility in 
its procurement of coal
70 of opg’s projects under development 
have committed supplies of indian coal with 
the remaining 30 utilising imported coal 
this balance of supply has enabled opg to 
establish close working relationships with 
both domestic and imported coal suppliers 
thereby mitigating the threat of coal not 
being available from any one source
summary
opg has made significant progress in the 
year successfully commissioning the 77 
mw chennai i facility producing significant 
increases in both revenue and profits in the 
current year we expect to benefit from its full 
year contribution albeit in an environment 
of high coal prices and borrowing costs 
we expect our operating model to provide 
flexibility with regards to these challenges 
most importantly we believe the profitable 
operation of chennai i in 2011 creates a 
firm platform for the company’s longterm 
growth accordingly we feel confident about 
the delivery of our 2015 target of 1250 mw
arvind gupta
12 august 2011
with coal in relatively short supply the 
indian power sector has unsurprisingly 
experienced upward price pressure for this 
key input to the power business most indian 
power producers unlike opg are reliant on 
obtaining coal either from the development 
of coal blocks or entirely on imported coal in 
addition the design of opg’s boilers allows 
the use of both high moisture imported and 
higher ash domestic grades of coal either 
exclusively or in a blended fuel source 
we expect coal prices to remain firm in 
the short term given the current economic 
growth rates in asia although prices should 
eventually stabilise in the medium term 
as coal supplies and demand fall more 
into line the company continues to look 
for additional opportunities to enhance 
profitability by optimising its fuel procurement
team
our priority is to provide a safe healthy 
working environment for employees 
and be responsible towards the 
communities in which we operate
our talented team is central to achieving the 
objectives of the company over the last 
year the team has built upon its significant 
experience and knowledge in developing and 
operating power plants as evidenced by the 
high load factors being achieved at chennai i 
and the continued progression and expansion 
of the company’s growth pipeline we value 
their commitment and contribution and would 
like to thank them for their continued efforts