MIRA INFORM REPORT

Report Date :

08.01.2011

IDENTIFICATION DETAILS

Name :	KSK ENERGY VENTURES LIMITED
Registered Office :	8-2-293/82/A/431/A, Road No. 22, Jubilee Hills, Hyderabad-500033, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.02.2001
Com. Reg. No.:	01-57199
CIN No.: [Company Identification No.]	L45204AP2001PLC057199
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on stock exchange.
Line of Business :	Project management and power Generation.

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 100000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessman. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Sandeep
Designation :	Accounts Department
Date :	06.01.2011

LOCATIONS

Registered Office :	8-2-293/82/A/431/A, Road No. 22, Jubilee Hills, Hyderabad-500033, Andhra Pradesh, India
Tel. No.:	91-40-23559922/ 23/ 24/ 25
Fax No.:	91-40-23559930
E-Mail :	comp.sect@ksk.co.in info@ksk.co.in careers@ksk.co.in investors@ksk.co.in
Website :	http://www.ksk.co.in

DIRECTORS

As on 31.03.2010

Name :	Mr. T L Sankar
Designation :	Chairman and Non-Executive Director
Name :	Mr. S R Iyer
Designation :	Non-Executive Director
Name :	Mr. Abhay Nalawade
Designation :	Non-Executive Director
Name :	Mr. Girish Kulkarni
Designation :	Non-Executive Director
Name :	Mr. Henry Klein
Designation :	Non- Executive Director
Name :	Mr. Anil Kumar Kutty
Designation :	Non- Executive Director
Name :	Mr. Tanmay Das
Designation :	Non- Executive Director
Name :	Mr. K Bapi Raju
Designation :	Whole- Time Director
Name :	Mr. K A Sastry
Designation :	Whole Time Director
Name :	Mr. S Kishore
Designation :	Whole Time Director

KEY EXECUTIVES

Name :	Mr. Sandeep
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares	Percentage
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	5,284,555	1.42
Sub Total	5,284,555	1.42
(2) Foreign
Bodies Corporate	191,222,031	51.32
Sub Total	191,222,031	51.32
Total shareholding of Promoter and Promoter Group (A)	196,506,586	52.73
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	9,626,327	2.58
Financial Institutions / Banks	15,241,503	4.09
Foreign Institutional Investors	49,390,236	13.25
Sub Total	74,258,066	19.93
(2) Non-Institutions
Bodies Corporate	14,880,948	3.99
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2,032,353	0.55
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1,183,948	0.32
Any Others (Specify)	83,768,553	22.48
Clearing Members	431,530	0.12
Non Resident Indians	72,114	0.02
Foreign Corporate Bodies	83,264,909	22.35
Sub Total	101,865,802	27.34
Total Public shareholding (B)	176,123,868	47.27
Total (A)+(B)	372,630,454	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
Total (A)+(B)+(C)	372,630,454	100.00

BUSINESS DETAILS

Line of Business :

Project management and power Generation.

PRODUCTION STATUS AS ON 31.03.2010

Licensed Capacity (MW)	31.80
Installed Capacity (MW)	31.80
Actual Generation (Million KWH)	23.90

GENERAL INFORMATION

No. of Employees :

Not Divulged by the Management

Bankers :

Not Divulged

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loans
Rupee Loans from Banks (Secured by corporate guarantee given by KSK Power Venture Plc)	1022.080	2999.990
Rupee Loans from Others (Secured by pledge of 52000000 Equity Shares of Rs. 10/- each of KSK Energy Ventures Limited held by KSK Energy Limited, Mauritius )	3500.000	0.000
Working Capital Loan (Secured by first pari-passu charge on fixed assets and current assets)	0.000	1.300
Other Loans and advances from Banks| (Secured by pledge of deposits)	1704.430	1350.120
Total	6226.510	4351.410
Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Long Term Loans
From Others	230.000	230.000
Short Term Loans
From Others	748.650	0.000
Total	978.650	230.000

Banking Relations :	--
Auditors :
Name :	Umamaheswara Rao and Company Chartered Accountant
Joint Venture:	Sitapuram Power Limited
Holding Company :	KSK Energy Limited, Mauritius
Ultimate Holding Company :	K and S Consulting Group Private Limited
Step Down Subsidiaries:	Sai Regency Power Corporation Private Limited VS Lignite Power Private Limited Wardha Power Company Limited Arasmeta Captive Power Company Private Limited
Fellow Subsidiaries:	KSK Mineral Resources Private Limited KSK Energy Resources Private Limited KSK Energy Company Private Limited KSK Investment Advisor Private Limited KSK Surya Photovaltaic Venture Private Limited
Subsidiaries :	KSK Electricity Financing India Private Limited JR Power Gen Private Limited KSK Dibbin Hydro Power Private Limited KSK Narmada Power Company Private Limited Bahur Power Company Private Limited KSK Vidarbha Power Company Private Limited Sai Maithil Power Company Private Limited KSK Technology Ventures Private Limited KSK Mahanadi Power Company Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000000	Equity Shaers	Rs. 10/- each	Rs. 40000.000 Millions
1031500000	Preference Shares	Rs. 10/- each	Rs. 10315.000 Millions
	Total		Rs. 50315.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
372630454	Equity Shares	Rs. 10/- each	Rs. 3726.300 Millions

Note:

(Of the above 191222031 Equity shares of Rs. 10/- each fully paid are held by KSK Energy Limited, Mauritius, the Holding Company)

(Of the above 70195429 Equity Shares are allotted as fully paid up by way of bonus share out of the securities premium and capitalization of the profits.)

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		3726.300	3461.050	2941.880
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		22074.170	16020.870	3472.270
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25800.470	19481.920	6414.150
LOAN FUNDS
1] Secured Loans		6226.510	4351.410	2510.780
2] Unsecured Loans		978.650	230.000	471.320
TOTAL BORROWING		7205.160	4581.410	2982.100
DEFERRED TAX LIABILITIES		33.030	2.350	3.720
TOTAL		33038.660	24065.680	9399.970
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1453.590	190.500	44.890
Capital work-in-progress		156.800	0.920	0.000
INVESTMENT		8180.630	8227.750	8379.520
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.550	0.000	0.000
	Cash & Bank Balances	2590.340	8898.750	955.730
	Other Current Assets	190.460	464.330	41.680
	Loans & Advances	24063.250	7544.610	2899.040
Total Current Assets		26844.600	16907.690	3896.450
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3562.710	1138.660	2871.750
	Other Current Liabilities	33.460	122.290	29.300
	Provisions	0.790	0.230	19.840
Total Current Liabilities		3596.960	1261.180	2920.890
Net Current Assets		23247.640	15646.510	975.560
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		33038.660	24065.680	9399.970

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales and Operating Income	1637.710	1064.780	501.600
		Other Income	342.600	484.290	1061.970
		TOTAL (A)	1980.310	1549.070	1563.570
Less	EXPENSES
		Manufacturing Expenses	0.980	0.000	0.000
		Personnel Expenses	77.200	73.020	63.520
		Administration and other Expenses	185.150	104.130	141.910
		TOTAL (B)	263.330	177.150	205.430
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1716.980	1371.920	1358.140
Less	FINANCIAL EXPENSES (D)		148.040	[3.610]	179.920
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1568.940	1375.530	1178.220
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.840	9.090	5.940
	PROFIT BEFORE TAX (E-F) (G)		1555.100	1366.440	1172.280
Less	TAX (I)		284.620	330.220	161.240
	PROFIT AFTER TAX (G-I) (J)		1270.480	1036.220	1011.040
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2057.960	1021.740	148.500
Less	APPROPRIATIONS
		7% optionally Convertible Cumulative preferences shares	--	--	16.800
		Dividend tax	--	--	2.850
		Tax on Dividend
	BALANCE CARRIED TO THE B/S		3328.440	2057.960	1139.890
	Earnings Per Share (Rs.)
	Basic		3.57	3.10	5.33
	Diluted		3.57	3.10	4.81

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010
Type	1^st Quarter	2^nd Quarter
Net Sales	615.940	174.560
Total Expenditure	46.040	62.090
PBIDT (Excl OI)	569.900	112.470
Other Income	8.260	4.430
Operating Profit	578.160	116.900
Interest	200.930	224.820
Exceptional Items	0.000	0.000
PBDT	377.230	[107.920]
Depreciation	19.870	20.5100
Profit Before Tax	357.360	[128.430]
Tax	70.740	5.900
Provisions and contingencies	0.000	0.000
Profit After Tax	286.620	[134.330]
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	286.620	[134.330]

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	64.16	66.89	64.66
Net Profit Margin (PBT/Sales)	(%)	94.96	128.33	233.71
Return on Total Assets (PBT/Total Assets}	(%)	5.50	7.99	29.74
Return on Investment (ROI) (PBT/Networth)		0.06	0.07	0.18
Debt Equity Ratio (Total Liability/Networth)		0.42	0.30	0.92
Current Ratio (Current Asset/Current Liability)		7.46	13.41	1.33

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
Dues to Micro, Small and Medium Enterprises	--	--	--
Dues to Others	3562.710	1138.660	2871.750

STANDALONE FINANCIAL RESULTS

The turnover of the Company has increased to Rs. 1,980.31 million from Rs. 1,549.07 million registering a growth of around 28%. The Profit before tax amounted to Rs. 1,555.10 million as against Rs. 1,366.44 million during the previous year registering a growth of around 14%. The Profit after tax has increased to Rs. 1,270.48 million from Rs. 1,036.22 million registering a growth of around 23%. The growth is mainly attributable to progress on the 3600 MW Chhattisgarh project.

REVIEW OF OPERATIONS / STATUS OF PROJECTS OF SUBSIDIARIES AND JOINT VENTURE

COMPANIES

Subject is a power project development Company in India, with experience in developing and operating multiple power plants across India. KSK operates in the power generation business and is well positioned with long-term fuel access to various power plants. The power projects are in various phases of operation and development, including operational power projects, power projects under construction and expected to be commissioned during the year, power projects under initial construction and power projects in the development and planning phases. The Company was established in 2001 to capitalize on the emerging opportunities in the Indian power sector and focus on developing, operating and maintaining power projects. The Company supplies power through a combination of long term and short term Power Purchase Agreements (PPAs) to a combination of industrial and state owned procurers and consumers in India.

- VS Lignite, a 135 MW lignite based power project in Rajasthan;

- Unit -1 of Wardha Warora, 135 MW coal based power project in Maharashtra; and

- Bahur Power, a 52 MW Wind Power based power project in Tamil Nadu.

Power projects under construction and scheduled for commissioning during the current year

- Unit - II, III and IV of Wardha Warora, aggregating to 405 MW coal based power project in Maharashtra; and

- Arasmeta Expansion, a 43 MW expansion of the existing Arasmeta power plant.

Power projects under initial construction

- KSK Mahanadi, a 3,600 MW coal based power project in Chhattisgarh.

PRINCIPAL POWER ASSETS

KSKs current principal power projects are as follows:-

Operational power plants

- Arasmeta, a 43 MW coal based power plant in Chhattisgarh;

- Sai Regency, a 58 MW combined cycle natural gas based power plant in Tamil Nadu;

- Sitapuram, a 43 MW coal based power plant in Andhra Pradesh;

Power projects under development

- KSK Dibbin, a 130 MW, run-of-the-river hydro electric power project in Arunachal Pradesh.

Planned power projects

Multiple thermal and hydro power projects across India.

Review of Business

Further, the operational and financial performance for the financial year 2009-10 of each of the various power plants has been outlined in the section titled Management Discussion and Analysis Report.

RECLASSIFICATION OF UTHORISED SHARE CAPITAL

During the year, the Authorised share capital of the Company was reclassified into 400,00,00,000 Equity Shares of Rs.10/- each and 103,15,00,000 Preference Shares of Rs.10/- each to facilitate issue of Preference Shares. The members had approved the reclassification of authorised capital through Postal Ballot process and the results of the Postal Ballot were announced by the Chairman on October 3,2009.

MANAGEMENT DISCUSSION AND ANALYSIS

SECTOR OVERVIEW

Overview of the Indian Power Sector

India is among the top 10 countries with respect to energy consumption and has been experiencing a rapid increase in demand on account of the inherent growth and economic rise. A large part of the commercial energy demand is currently met through vast coal reserves and expected to continue for more years to come. In recent years, the country has also begun investing and promoting investments in renewable source of energy and evolved structural legislations and policies to encourage such power generation.

The total power generation in the country during FY 2010 was 771.6 Billion Units (BU) as against 723.8 BUs, a 6% growth but still not in line with the outstripping demand requirements. Against energy requirement of 830 BUs supply stood at 746 BUs, a clear 10% on energy terms. The situation on peak demand is further challenging with 104 GW of met demand against 119 GW, shortage of 13%. All of the above does not take into account the latent demand that often doesn't express itself in the context of such chronic shortages.

Capacity Addition

The Government of India is nowtargeting capacity addition of 78 GW during the Eleventh Plan period (FY 08-12) of which 41.9 GW ought to have been added in the three years already completed. The actual addition has been only 22.3 GW and it is expected that the final addition for the plan period would be in the order of not more than 40 to 45 GW.

During the current year 2009-10, the capacity addition has been 9.58 GW against the target of 14.50 GW. Thermal accounted for 95% of the capacity added with nuclear at 4.5% and hydro a meager 5%. Also it would be pertinent to note that Private sector for the first time accounted for 45% of the annual capacity addition with state utilities at 32% and central utilities contributing the balance 23%.

Afuel wise and region wise breakup of the capacity addition is outlined below.

Despite the ambitious mission of Power for all by 2012, necessitating at least 40 GW in next two years and doubling the install base thereafter to 400 GW in 8 years, historically the capacity addition in Tenth Plan (FY03-07) has been 21 GW against target of 41 GW representing the multiple challenges associated with capacity additions.

Short-term energy tariffs and volumes

While it is common to experience high tariff during the summer months, the tariff during balance part of the year also remained high. While the lowest was at the order of Rs. 3.30 per kwh on the low value power exchanges, bilateral purchases that account for largest part of the volume had prices around Rs. 5.27 per kwh. Similarly volumes experienced a significant rise during the middle of the year mirroring the effects of shortages as well as results of a sub standard monsoon and poor hydro power generation.

Fuel Resources and Power Generation

Coal continued to remain the mainstay of electricity generation in the country. During the year 2009-10 (up to Dec'09), the coal based generation contributed about 65.8% (376.64 BU) of the total electricity generation of 573.28 BU. Albeit a low share of the total, import of coal was resorted to bridge the gap between requirement of coal and its domestic availability.

An overview of coal consumption in million tons (MT) with respect of thermal power stations of power utilities during 2009-10 (up to Dec'09) is given below:

Coal India Limited : 217.0 MT

Singareni Collieries Company Limited : 24.6 MT

Captive Mines : 16.7 MT

Import : 16.7 MT

Coal consumption : 271.0 MT

Thermal Coal requirement by power plants is projected to be 549 MT by 2012 against which shortage in production from Coal India is expected. Hence, there has been an increased thrust in captive coal mine allocation and production as well as import of coal for power projects along the coastline.'fhis results an interesting dynamic among private power plant producers as well as differential parities of various generators vis-h-vis the country's energy pool.

Additionally, policy for utilization of gas from KG Basin has significantly evolved over the last two years the utilization policy preference with respect to fertilizer as well as existing gas based projects is throwing an interesting dynamic on the potential for new gas based generation capacity. Also the upward revision of the Administered Price of Natural Gas has resulted in new scenarios and also forcing various developers to ascertain economically viable base load power plants based on long term LNG contracts. Also the concept of implementation of blended pool price has thrown open other uncertainties that would need to be addressed in years to come.

New regulations by Central and State Electricity Regulatory Commissions

During the year, Central Electricity Regulatory Commission has issued regulations and enhancements with respect to terms and conditions of tariff, Open Access in Inter State Transmission, issuance of Trading License, furnishing of technical details by generating companies, tariff determination from renewable energy sources and most importantly recognition and issuance of renewable energy certificates. Additionally various state regulators have stated their respective regulations and overall there is an enhanced regulatory evolution and necessary clarity and consistency thereto.

Government Policy

In addition to introduction of Electricity Act, 2003, a comprehensive legislation replacing Electricity Act 1910, Electricity Supply Act 1948 and Electricity Regulatory Commission Act, 1998, the government has carried two amendments thereto with a central aim is to push the power sector onto a trajectory of sound commercial growth and to enable the States and the Centre to move in harmony and coordination.

In the wake of several statutory and policy changes the Mega Power Policy of 1995 required changes and a modified policy was brought out in December, 2009 to rationalize the procedure for grant of mega certificate and facilitate quicker capacity addition. The mega power policy is expected to have positive impact in the form of lower generation cost and resultant cost of power purchased by distribution utilities.

Also in addition to introduction of Generation Based Incentives (GBI) based on actual renewable power generation based on wind resources the government launched highly innovative Jawaharlal Nehru National Solar Mission under the title Solar India which has the pride of place in India's National Action Plan on Climate Change. The multiple government policies in this regard not only provide fiscal incentives, capital subsidies, feed in tariffs etc., amongst others to promote immediate capacity creation but also expected to fuel additional thrust in exploring and developing renewable energy sources for the future.

Renewable Energy

With increased focus on environment and scarcity as well as concerns on carbon foot print of fossil fuels for generation of power, Government of India has given impetus to generation of renewable energy. Renewable

energy, an alternative source of power generation, is environment friendly but is beset with high cost, evolving technologies and low PLF There is a significant potential in India, for generation of power from renewable energy sources such as wind, solar and biomass. To overcome the high cost of setting of renewable energy generation units, Government of India is providing various fiscal and other benefits.

OPPORTUNITIES AND OUTLOOK

To achieve the ambitious capacity addition targets as well as ensure the policy objective of ensuring the power sector movement onto a trajectory of sound commercial growth it is inevitable that multiple initiatives in power generation need to betaken up and would result in multiple entrants into the power sector. The constant increasing demand for power generation is the single most enabler for multiple opportunities and ambitious plans by various power generation groups. Some of these opportunities are discussed below:

Captive Generation Segment

Captive power generation is a niche segment in Indian power generation market that often refers to generation by a power plant that is setup by participation of user industry with an objective of primary consumption by the user Industry. Industrial sector is one of the largest consumers of electrical energy in Indian utility pool but are now often increasingly relying on their own generation (captive and cogeneration) rather than grid supply due to:

* Non-availability of adequate grid supply and constant outage and forced shutdowns;

* Poor quality and reliability of grid supply; and

* High tariff as a result of heavy cross-subsidy element.

While this is a vital opportunity space for power generators, often the customized requirements of the end use industries, geographical location constraints, fuel sourcing, optimal power plant sizing and requirements to constantly adjust to evolving regulations has ensured that only credible and large developers with pre-existing track record to address this opportunity

Base Load Power Generation Plants

The government policy has thus far been focused on adding new generation capacity through central and state sector as well as bid out of Ultra Mega Power Projects. While these have traditionally had their own set of challenges, a number of other opportunities based on private developer initiative, captive coal block economics, imported coal themes as well as state government collaboration have evolved over the last few years. Also gas based projects could see an increasing thrust in coming years to meet the peaking requirements or conventional base load on specific economics.

While these also continue to provide the much required traditional base load support requirement of the grid as well as various utilities similar to the larger projects, it is expected that these smaller modular specialized initiatives with associated structuring and developer initiative could become the corner stone of new competitively prices marginal capacity creation the country during the current decade.

Hydro Power Generation Plants

In addition to the plans and often requirement to balance the Thermal Power generation portfolio with sustainable non fossil fuel based generation, Hydro power generation is one area that is going to be an essential part of the energy security plans of the country. Also with water flows from Himalayan sources, the projects in northern and north eastern part of India are expected to mainstay of hydro power generation in the future.

While these opportunities often result in long gestation with associated uncertainty on environmental permits, land acquisition, relief and rehabilitation matters in addition vital transmission constraints for delivery of power to regions of consumption, hydro power plants offer the advantage of mitigated fuel risk position through appropriate project location as well as extensive hydrology analysis. Also, they could be amenable to much required peaking power requirements as well.

Renewable Power Generation

Within the renewable space, India has traditionally invested in Wind Power with more than 60% of the total renewable energy coming from wind energy last year. The Indian wind energy sector has an installed capacity of 11,807.00 MW (as on March 31, 2010). In terms of wind power installed capacity India is ranked 5th in the World. Today India is a major player in the global wind energy market.

The potential is far from exhausted. Indian Wind Energy Association has estimated that with the current level of technology, the 'on-shore' potential for utilization of wind energy for electricity generation is of the order of 65,000 MW. 'The unexploited resource availability has the potential to sustain the growth of wind energy sector in India in the years to come. However the move away from accelerated depreciation model is expected to generate interest of new independent power producers in the next generation growth of the wind power business.

With increasing focus on environment related issues, power projects,employing clean and environment friendly technology can also earn caron credits, which are traded extensively in the international market thus providing an additional source of revenue/ cash flow.

OPERATIONAL HIGHLIGHTS

As of March 31, 2010 the Company had an installed capacity of 279 MW (144 MW in 2009) and further commenced power generation from the first unit of 135 MW of the Wardha Warora power project resulting in total generation capacity of 414 MW. Further, with the completion of acquisition of 52 MW of Wind generation assets recently, the installed generation base has crossed 450 MW With commissioning of the balance three units of Wardha Warora and Arasmeta expansion further addition of 448 MW would result in the Company having an aggregate installed generation capacity of 900 MW.

Further with supplies of power generated through a combination of long term and short term Power Purchase Agreements (PPAs) to a combination of industrial and state owned procurers and consumers in India it is expected that the 900 MW power generation portfolio would generate significantly higher profitability compared to other power generation assets of similar size.

ARASMETA CAPTIVE POWER COMPANY PRIVATE LIMITED (ACPCPU)

Arasmeta is a coal based power plant with the capability of generating 43MW of power. The plant operating as a base load plant caters to the complete power requirements of Lafarge India. Lafarge has two cement manufacturing facilities at Arasmeta and Sonadih in Chhattisgarh, which are the primary users of power generated by the Arasmeta power plant with available surplus, if any, supplied to the local utility.

SAI REGENCY POWER CORPORATION PRIVATE LIMITED (SRPCPU')

This captive power plant is a natural gas-based combined cycle power plant with capability of generating 58 MW of power. The plant is situated in the Kalugurini village, Ramanthapuram District, Tamil Nadu. The power generated at the plant is wheeled using the grid transmission system to the captive consumers located in the State of Tamil Nadu and surplus to the utilities.

SITAPURAM POWER LIMITED (SPL)

This captive power plant is coal-based with capability of generating 43 MW of power. The plant is situated in Dondapadu, Andhra Pradesh. Zuari Cement Limited (ZCL) is the major consumer of the power generated by the Sitapuram power plant and balance supplies to the utilities.

VS LIGNITE POWER PRIVATE LIMITED (VSLP)

This power plant is a lignite based power project with a capability of generating 135 MW of power. The power project is situated in Gurha Village, Bikaner District, Rajasthan.

During the year under review, due to the set back suffered on account of Visa restrictions affecting the contractor to complete the erection and commissioning activities at the site, the company made additional efforts to hire the services of an independent contractor and depute the company's in-house resources to supplement the skilled force in implementation of the project. The plant commenced generation in March 2010.

Additionally, the entire Gurha (E) lignite development was completed by the Group and Mines Safety Week 2009 was observed in December, 2009 under aegis of Directorate General Mines Safety, Ajmer region and National safety week in March 2010. An experts team inspected the Company's mine on December 8, 2009 and appreciated the workings.

BAHUR POWER COMPANY PRIVATE LIMITED (BPCPL')

Towards the end of the previous year and the first quarter of the current year the company has augmented its installed generation base through an addition of 52 MW of wind power generation in the state of Tamil Nadu. The company proposes to increase this portfolio through acquisition of additional Greenfield/Brownfield opportunities as well as development of new wind farms.

Construction Plants (to commission shortly)

The plants under construction and slated for commencement of operations during the current year are outlined below:

WARDHA POWER COMPANY LIMITED, WARORA (WARDHA')

This power project is coal based with generating capacity of 540 MW comprising four units of 135 MW each. The project is situated at Warora Growth Centre, Chandrapur District, Maharashtra.

The coal fired power project is progressing in line with the anticipated schedule. First unit of 135 MW has commenced power generation in May and second unit in July/August 2010. The construction work of unit 3and4 is progressing well.

ARASMETA CAPTIVE POWER COMPANY PRIVATE LIMITED -EXPANSION

This plant is being developed, adjacent to the existing captive power plant, in order to meet the additional energy requirements of Lafarge for the expansion of its cement plant on Sonadih and for its planned cement manufacturing facility in Chhattisgarh. This project is expected to be commissioned by the second quarter of the current year with surplus sale contemplated to other utilities.

Early Construction Projects

KSKMAHANADI POWER COMPANY LIMITED-CHHATTISGARH

KSK Mahanadi is the largest power project pursued by the Group till date. It is a 3600 MW power plant being setup at Nariyara. The coal supplies are tied up from GMDC's Morga II coal block and GIDC's Gare Pelma Sector III coal block in Chhattisgarh. In addition to land acquisition, environment clearance and execution of Implementation Agreement with Chhattisgarh government, Power Purchase Agreement with GUVNL, EPC contracts with SEPCO of China and tie up of requisite project debt, the civil works at site have begun. Also effort on the associated water intake infrastructure, power evacuation as well as railway siding has begun.

KSK DIBBIN HYDRO POWER PRIVATE LIMITED-ARUNACHAL PRADESH

KSK Dibbin Power Project, a 130 MW run-of-the-river-hydro-electric power project on the Kameng Basin, Arunachal Pradesh. After detailed studies, submission of the Detailed Project Report (DPR) a clearance has been obtained for setup of 120 MW station at the identified location. Land acquisition deposit has been paid in and the environment clearance process is currently underway and thereafter the bid mechanism for selection of the EPC contractor is expected to be undertaken during the ensuing quarter.

Planned Projects

Continuous effort underway both in the Hydro power projects in Arunachal Pradesh as well as other Thermal power projects based on fuel secured through government collaboration to undertake preliminary development activity for accelerating their development cycle. Also, effort is currently underway on additional hydro opportunities and fuel resources for larger growth opportunities.

INFORMATION TECHNOLOGY AND SYSTEMS

The Company has focused to keep Information Systems on continuous development towards expansion and integration of infrastructure for long term use, centralized data management and monitoring on secured manner, identifying the company needs and employees collaboration towards LT facility, maintaining the system healthiness for 24/7 service, tied-up with various software vendors to use licensed copies of the software products with compliance as per the corporate policy.

During the current year, KSK achieved to integrate all the departmental functions and day-to-day activities by implementing the Intranet Portal for exclusive use of all KSK head offices and site offices personnel for better collaboration and communication. Also systems have been implemented for backup storage and restore data related to all mail communication and application database are centrally managed at head office on secured mode to streamline the data integration. The plans for the ensuing year involve setup of a suitable Disaster Recovery Center to provide for all important data on highly secured way as part of data security and backup.

Contingent Liabilities:

Particulars	31.03.2010 Rs. In Millions
Bank Guarantee Outstanding	5075.900
Corporate Guarantees	5780.420

Fixed Assets:

· Land and Site Development

· Buildings

· Plant and Machinery

· Electrical Works

· Furniture and Fixtures

· Vehicles

· Computers

· Office Equipments

· Computer Software

AS PER WEBSITE

History:

Year	Company History
2009	Coal supply agreement  entered with GIDC  for 1800 MW Power project in Chattisgarh, Wardha Chattisgarh capacity enhanced to 3600 MW in same location Group achieves production of the Gurha East lignite block of VS Lignite power plant KSK Power Ventur plc undertakes a placement of shares raising approx £ 32.5 mn KSK Energy shareholders approve a potential placement of new shares under GDR /ADR/QIP route under preferential allotment basis More than 10+ GW of  power project  opportunities portfolio
2008	Restructuring agreement with LB, becomes a large (33%) shareholder in KSK Energy Ventures KSK Energy Company, 100% subsidiary of KSK Power Ventur plc with mineral interests and other business streams obtains government consent Company transfers 26 MW coromandel asset in favour of India cements, to the other shareholder in the power plant Effort on Wardha Chattisgarh 1800 MW power plant commences with significant debt tie-up KSK Energy Ventures complete its Pre-IPO placement as well as Initial public offering of Shares, raising approx US$ 300 mn KSK Power Ventur plc stake dilutes down to 55.25%. KSK Energy stock starts trading on NSE/BSE
2007	Sai regency power plant synchronized with the grid Company secures award of 725 MW of Hydro power opportunities in Arunachal Pradesh Sitapuram power plant synchronized with the grid Company enters strategic relationship with GE Coal supply agreement  entered with PIPDIC  for proposed 1800 MW JR Power project
2006	Government consent for the Lehman JV investments and multiple power plants capitalized Arasmeta plant synchronized with the grid Collaborative MOU’s with SMDC’s (GMDC, MPSMC and PIPDIC) for long term coal supply arrangements signed KSK Promoter Group Company “KSK Power Ventur plc” lists on AIM Market of London Stock Exchange Execution of a coal supply and investment agreement with GMDC for supplies to proposed 1800 MW Chattisgarh project Lafarge confirms request for setup of additional 43 MW  power plant expansion unit Effort on Wardha Warora 540 MW power plant commences
2005	KSK Energy forms Joint Venture with Lehman Brothers India Holdings to set up KEFIPL to fund power project equity requirements Secures allocation of the Gurha East Lignite block to VS Lignite from Government of India Shareholders Agreement with Zuari cements for setup of  43 MW captive power plant Entire debt tie-up of  3 power projects of Arasmeta, Sai Regency and Sitapuram achieved
2004	Achieves full fund tie-up of “Small is Beautiful” fund Coromandel Electric phase I of 17.4 MW power plant commences commercial operation Memorandum of Understanding with Lafarge India to set up a 43 MW Arasmeta power plant
2003	Commenced work on 10.9 MW, gas based  MMS Power plant in Tamilnadu Effort on setting up India’s first power project focused investment fund – “small is beautiful”
2001	Incorporated KSK Energy Ventures Private Limited Commences commercial operation of 20 MW Kasargod Power Plant

OVERVIEW:

KSK Energy Ventures Limited (KSKEVL), a BSEand NSE listed Indian subsidiary of KSK Power Ventur plc, is a power project development company in India, with experience in developing and operating multiple power plants across India. We operate in the power generation business and are well positioned with long-term fuel access to the various power plants. The Company was established in 2001 to capitalize on the emerging opportunities in the Indian power sector and focus on developing, operating and maintaining power projects. KSKEVL supply power through a combination of long term and short term Power Purchase Agreements (PPAs) to a combination of industrial and state-owned procurers and consumers in India.

Besides Power Utilities, KSK has a wide ranging consumer base amongst cross section of Industries in India such as cement, textiles, steel, chemicals, Automobiles and Auto ancillaries, Heavy engineering and Industrials. KSK is possibly the largest Industrial Power Supply Company in the Country spread across various industry categories as mentioned below. Surplus Power is sold to local utilities under short term contracts at attractive price realizations.

The key current business interests of KSK Energy Ventures Limited are

Thermal Power Plants (9862 MW) - KSK currently has four power plants (aggregating 279 MW) that are fully operational, three power plants (aggregating 4183 MW) that are under construction and three power plants (aggregating 5400 MW) that are under planning stage.

Hydel Power Plants (1045 MW) - KSK currently has three hydel power plants (aggregating 1045 MW) under planning stage.

Fuel Security- Fuel being a pillar of the strategy, they understand the key role fuel security is going to play in long term sustainable operations of the projects. To stay ahead in an uncertain global energy scenario and provide the customers with stable power supply at affordable prices, it is critical for them to secure fuel linkages. Since coal is likely to play a dominant role in India’s energy scene, keeping in line with the vision, KSK Group has decided to pursue the developer role in aggregation of coal reserves and the group has incorporated a separate company ‘KSK Mineral Resources Private Limited’ to undertake this initiative.

Board of Directors of KSK Energy Ventures Limited

Padma Bhushan Mr. T.L. Sankar

Non-Executive Chairman

Mr. Sankar has a Master of Science degree in Physical Chemistry and a Master of Arts degree in Developmental Economics. He has approximately four decades of experience in the energy sector. In 2004, he was awarded the Padma Bhushan, one of the highest civilian awards given by the Government of India. He has worked as the Secretary of the Fuel Policy Committee (1970-75), the Principal Secretary of the Working Group on Energy Policy (1978-79), a member of the Advisory Board on Energy, Government of India and a member of the Integrated Energy Policy Committee formed by the Planning Commission, Government of India. He was also the Energy Secretary to the Government of Andhra Pradesh and the Chairman of Andhra Pradesh State Electricity Board. He is the founder and Chairman of the Andhra Pradesh Gas Power Corporation Limited and headed the Gas Price Revision Committee of the Government of India in 1996. In addition, he has worked with the United Nations as an advisor on energy issues to the Governments of Sri Lanka, Tanzania, Jamaica, North Korea and Bangladesh and has headed the Asian Development Bank’s Asian Energy Survey.

Mr. S.R. Iyer

Non-executive Director

Mr. Iyer has a Bachelor’s degree in Science and is a Certified Associate of the Indian Institute of Bankers. He joined the State Bank of India as a probationary officer in 1962 and after holding various positions with the bank in India and abroad, he retired as its Managing Director in 2000. Since then, he has been a part of various banking industry working groups in India and was also the Executive Chairman of the Credit Information Bureau (India) Limited from February 2001 to February 2004.

Mr. Abhay M. Nalawade

Non-Executive Director

Mr.Nalawade is a graduate in Physics and has a Masters in Business Administration (MBA) degree from Pune University. He also completed a program in Management Development from the Harvard Business School. Mr. Nalawade has been associated with Thermax Limited for approximately 25 years, including as a Director and the Chief Executive Officer and Managing Director from February 1996 until July 2000.

Mr. Girish N. Kulkarni

Non-Executive Director

Mr. Kulkarni has a Bachelors Degree in Engineering from the Indian Institute of Technology, Mumbai and a Post Graduate Diploma in Business Administration from the Indian Institute of Management, Ahmedabad. Mr. Kulkarni has approximately 20 years of operating and investment experience in different aspects of the Indian capital markets. He started his professional career as a project finance officer with ICICI, after which he became the head of equity sales, trading and research at ICICI Securities Limited. Mr. Kulkarni has been involved in numerous IPOs in the Indian capital markets and several mergers and acquisition assignments. Mr. Kulkarni is the advisor to the India Technology Fund, an early stage venture fund invested in Technology companies. He is also the Founder and Managing Director of Suyash Advisors, the India advisor to Monsoon Capital, an India dedicated alternative asset fund managing about USD 500 million for investment in public and private equities and real estate projects in India.

Mr. Henry Klein

Non-Executive Director

Nominee of LB India Holdings Mauritius I Limited

Mr. Klein holds a Bachelors and a Masters degree of Science in Electrical and Electronic Engineering from the University of Cape Town, South Africa. Mr. Klein also holds a Masters in Business Administration (Finance) degree from the Columbia University Graduate School of Business, New York. Mr. Klein began his career in Finance in 1989 as an investment banker at Lehman Brothers in New York and in 1996 cofounded TDA Capital Partners, Inc., an investment firm dedicated to private investments in India, Central Europe and Israel. Mr. Klein is a Managing Director in the Principal Investments Division of Lehman Brothers Holdings in New York and previously was a Managing Director in the Principal Investments Division of Lehman Brothers Inc. where he worked since 2003. Mr. Klein has approximately 20 years of experience as a financial professional, initially as an investment banker at Lehman Brothers and later as an investor in public and private equity and debt transactions in the United States and developing countries with a focus on India.

Mr. Anil Kumar Kutty

Non-Executive Director

Mr. Kutty has a Masters degree in Physics from the Delhi University. He has over three decades of experience in various fields including banking, administrative service and power sector. Mr. Kutty belongs to the 1978 cadre of the IAS and has handled several key assignments in the power sector, both for the State Government of Andhra Pradesh and the Government of India. As Member (Secretary) of APSEB, he was in charge of power sector reforms in Andhra Pradesh and was also the first CMD of APTRANSCO and chairman of the distribution companies. He worked as Joint Secretary, Ministry of Power, Government of India until 2007.

Mr. Tanmay Das

Non-Executive Director

Mr. Das has a Bachelor's degree in Electrical Engineering and a Postgraduate Diploma in Management. He has more than 15 years of experience in project, finance, fund management and development of generation assets. Mr. Das was a Wholetime Director of the Company and with effect from April 5, 2008 he has been a Non-Executive Director.

Mr. K. Bapiraju

Executive Director

He is an engineer with a degree in Electronics and Communications with more than two decades of experience in the IT industry. He is positioned in Delhi and leads the Corporate Affairs group and is also actively involved in formulating corporate strategy.

Mr. K.A. Sastry

Executive Director

Mr. Sastry is one of the Promoters of the Company. Mr. Sastry is a qualified chartered accountant, leads project execution and operations activities of the business in addition being responsible for financial accounting, taxation and human resources functions of KSK Energy Ventures. Prior to incorporating KSK, Mr. Sastry had more than a decade of extensive experience in the domains of consulting, audit, company law and foreign investment regulations.

Mr. S. Kishore

Executive Director

Mr. Kishore is one of the Promoters of the Company. Mr. Kishore is a qualified chartered accountant, leads the Business Development and Capital formation (both Equity and Debt) initiatives of the Group and has been instrumental along with Mr. Sastry in the rapid growth of KSK over the last decade. Prior to incorporating KSK, Mr. Kishore was a financial advisor and consultant for major domestic as well as international businesses in emerging technology areas and importantly has advised multiple energy companies/ utilities/ market entrants since early nineties. Mr. Kishore has been additionally associated with various reforms and regulatory initiatives of the Government and has served in various committees.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.37
UK Pound	1	Rs.70.04
Euro	1	Rs.58.93

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.