CONTENTSS.No. Chapter Name Page No.Repesentation to President of India2 24 1 Mr. Y.S. Rajasakhar Reddy affidavit given in 2004 Elections. 25 35 2 Income tax Return of Mrs. Y.S. Vijaya for the year 2003-0436 39 3 Income tax Return of Mrs. Y.S. Sharmila D/o. Mr. Y.S.R. for the year 2003-0440 45 4 Income tax Return of Mr. Y.S. Jagan Mohan Reddy son of Mr. Y.S.R. for the year 2003-0446 51 5 GO No. 1110 issued in favor of M/s. VANPIC Ports Private Ltd - allotment of 6,493.19 acres.52 54 6 GO No. 29, 30, 31 issued in favor of Ras Al Khaimah (Emirate of UAE) & VANPIC Ports Pvt Ltd Nizampatnam port 55 62 7 MOU between Ras Al Khaimah and Govt. A.P.63 72 8 Memorandum of Matrix Enport (VANPIC) 73 80 9 Form 32 of Gilchrist investments N. Prasad81 84 10 Form 32 of ERES Projects Pvt. Ltd.85 86 11 Govt. of A.P. Industries Dept. Lt. No. 16272-SEZ-Allotment 87 100 12 Gazette Dt. 8-6-2007 Nadergul Village Lands Issue101 102 13 G.O. No. 329 of MA&UD permission for Star Hotel in Banjarahills, Hyderabad10314 G.O. No. 771 of MA&UD-relaxing FSI in Banjarahills and Jubileehills, Hyderabad10415 G.O. No. 659 of Revenue Department Relaxing Stamp duty to SEZ105 106 16 Balance Sheet for the year 2007-08 of Sandur Power Company Ltd.107 142 17 Subsidiary Companies of Sandur Power 143 144 18 List of Share Holders of Sandur Power145 147 19 Allotment of Shares in Jagati Publications to Carmel Asia148 151 20 Allotment of Shares in Jagati Publications to Gilchrist Investments and Alpha Group N. Prasad 152 155 21 Appointment of Y. Jagan Mohan Reddy as director in Jagati Publications 156 159 22 List of Share Holders of Jagati Publications 160 170 23 Balance Sheet for the year 2007-08 of Jagati Publications Pvt. Ltd.171 193 24 Allotment of shares in Raghuram Cements Ltd. To Y.S. Jagan Mohan Reddy @ Rs. 10/- each194 198 25 Allotment of shares in Raghuram Cements Ltd. To Dalmia Cements Ltd. @ a premium of Rs. 110/- per share and to G2 Corporate Services Ltd of N. Prasad @ a premium of Rs. 94/- per share. 199 206 26 Allotment of shares in Raghuram Cements Ltd. To India Cements Ltd. @ a premium of Rs. 110/- per share 207 211 27 Allotment of shares in Raghuram Cements Ltd. To Sandur Power @ Rs. 10/- each212 214 28 Allotment of shares in Raghuram Cements Ltd. To N. Prasad @a premium of Rs. 175/- per share 215 219 29 Allotment of shares in Raghuram Cements Ltd. To Dalmia Cements Ltd. @a premium of Rs. 1440/- per share 220 231 30 Balance Sheet for the year 2007-08 of Janani Infrastructure Pvt. Ltd. 232 248 31 Balance Sheet for the year 2007-08 of Silicon Builders Pvt. Ltd.249 262 32 Balance Sheet for the year 2007-08 of Harish Infrastructure Pvt. Ltd.263 274 33 Balance Sheet for the year 2007-08 of Bhagavath Sannidhi Estates Pvt. Ltd.275 287 34 Balance Sheet for the year 2007-08 of Marvel Infrastructure Pvt. Ltd.288 299 35 Balance Sheet for the year 2007-08 of Shalom Infrastructure Pvt. Ltd.300 310 36 Balance Sheet for the year 2007-08 of Capstone Infrastructure Pvt. Ltd.311 321 37 Balance Sheet for the year 2007-08 of Inspire Hotels Pvt. Ltd.322 333 2 Fclruary 18,2009Fcsccicd Fasiraaili ji,Sul. Fcqucsi for dircciing rosccuiion againsi ilc ClicfMinisicr of Andlra Pradcsl, Dr. Y.S. FajascllaraFcddyforviolaiion of various laws Fcg. 1. WcwisliolringioYourEccllcncy'slindnoiiccilclargcscalcnisuscandaluscofowcrandofficialosiiionlyDr.Y. S. FajascllaraFcddy, Clicf Minisicrof AndlraPradcsland lis fanily ncnlcrs lcsidcs violaiion of lasic rincilcsof ulliclifcandoailialcnlylinasClicf MinisicrofAndlra Pradcsl. You arc lindly awarc ilai a crson loldingullic officciscnirusicdwiilowcrsiolcccrciscdinullic inicrcsi alonc. Inilc rcscni casc, Clicf Minisicr'sofficc is lcldly Dr. Y. S. FajascllaraFcddy infiduciarycaaciiy for ilc colc of A.P. and lis connissions,onissions, nisuscof lisowcrsanddcviaiionsianianouniio lrcacl of irusi aiiraciing rosccuiion undcr ilc Prcvcniionof Corruiion Aci and oilcr cnal laws.2. Ariiclc 164of ilc Consiiiuiionof Indiarcscrilcs oailofofficc and sccrccy for a crson io lc sworn in as ClicfMinisicr wliclrcads as follows. .. I will do rigli io allnanncr of colcinaccordanccwiililcConsiiiuiionandilclawwiilouifcarorfavour,affcciionorill-will". Dr.Y.S.FajascllaraFcddyiooloailof officcinilcnonilof May2004andcvcrsincclclaslccndoingcvcryilingioviolaicilcoaillyconfcrringlcncfiisiocolcof liscloiccandcnricling lis fanily ncnlcrs/associaics/conccrns ai ilccosi of ullic cclcqucr.2 33. Iiiscriincniiociiclcrcilclasicrincilcsof ulliclifcwlicl arc as cnunciaicd lcrcundcr.(i} Tlosc wlo lold Pullic Officc slould ialcdccisionssolclyinicrnsof ullicinicrcsi.Tlcy slould noi do so in ordcr io gainfinancial or oilcr naicrial lcncfiis forilcnsclvcs, ilcir fanily or ilcir fricnds.(ii} Holdcrs of ullic officc slould noi laccilcnsclvcs undcr any financial or oilcrolligaiion io ouisidc individuals ororganizaiionsilainigliinflucnccilcninilc crfornancc of ilcir official duiics.(iii}Holdcrsofullicofficcarcaccouniallcio ullic for ilcir dccisions and aciions andnusi sulnii ilcnsclvcs io ilc scruiinyaroriaic io ilcir officc.4. Scvcral colcwcrccorrui innanywaysinilclisioryofcorruiionwliclisnoilinglui nisaroriaiionof ulliccclcqucr for rivaic gain. Dr. Y. S. Fajascllara Fcddy,Clicf Minisicrof AndlraPradcsllasaluscdlisofficcforcrsonal gain io lis liil and lin including and csccially lissonMr. Y. S. JaganMolanFcddy. Dr. Y. S. FajascllaraFcddylasaclicvcdduliousdisiinciionof canouflagingilcranl acis of corruiion and ncoiisn.5. Iiisaosiiciorccallilcdcclaraiionofasscissulniiicdioilc ElcciionConnissionof Indialy Dr. Y.S. FajascllaraFcddyinilcycar2004. Accordingioilcsaiddcclaraiion,ilc valuc of lis cniirc asscis was noi norc ilan Fs.50

4Lalls. Tlc only valuallc assci oui of lis innovallcrocriics was lis rcsidcniial lousc rocriy locaicd ai FoadNo.2, Danjara Hills, Hydcralad wlicl was valucd aiFs.14,03,452/-. Dr. Y. S. FajascllaraFcddyladulliclydcclarcd ilai duc io financial cigcncics lc nccdcd ioalicnaicilcsaidlouscandallcgcdilai ilcTcluguDcsanPariy govcrnncni was noi clcaring ilc filc wiil nala fidcs iolarasslinaslcwasilcoliiical rival of ilcrulingariyilcn.6. Tlcalovcfacisgocsiocsiallislilai Dr. Y.S. FajascllaraFcddy's fanily is a fanily of nodcsi ncans iill lc was sworninasClicf Minisicrof AndlraPradcsl, lui ilcrcaficrilcyaccunulaicd lugc rocriics ly indulging in variouscorrui raciiccs, illcgal ncilods and ly floaiing variouslcnani conanicsinilcnancof lissonandoilcrfanilyncnlcrs/associaics.7. Tlcfanilyncnlcrsof Dr. Y.S. FajascllaraFcddyviz., SriY.S.JaganMolanFcddy(son},Sni.Y.Slarnila(Dauglicr}lavc dcclarcdilcir inconc andasscis io ilc Inconc TaDcarincni for ilc financial ycar 2003-2004. As cr ilcsiaicncnisfurnislcdioI.T.Dcarincni,ilcioialinconcofilcfanilyof Dr. Fcddy'swasonlyFs. 41.08lallsandilcvalucof assciswasonlyFs. 2.02crorcs. Dciailsof inconcand asscis of Dr. Y. S. Fajascllara Fcddy and lis fanily arcas follows.

4 5FinancialYcarDr. Y.S.FajascllaraFcddyY.VijayaLaniY.S.JaganMolanFcddyY.SlarnilaToialInconc2003-04for ilccriodcnding31.03.2004Inconc -Fs.10.04lallsInconcFs.5.50lallsInconcFs11.02lallsIL[HGDVVHWVFs.36.53lallsInconcFs14.52lallsFs.41.08lalls2004-05for ilccriodcnding31.03.2005N.A N.A.InconcFs.664.71IL[HGDVVHWVFs.40.92lallsInconcFs.18.52lallsFs.683.23lalls8. Dcginning May 2004, Mr. Y. S. Jagan Molan Fcddy anasscdlugc wcalil and siaricd floaiing/acquiring variousconanics. Tlcsc includc M/s. Carancl Asia Holdings (}Lid., M/s Silicon Duildcrs (} Lid., M/s. Jagaili PullicaiionsPvi. Lid., M/s. Indira Tclcvision (} Lid., and M/s. FagluranCcncnis Lid. (sulscqucnily rcnancd as M/s. DlarailiCcncni CororaiionLid.}. Ascr availallcinfornaiion16sucl conanics wcrc floaicd/acquircd ly ilc Clicf Minisicr'ssonSri Y.S.JaganMolanFcddy wiililc solc oljcciivc oflaundcringilcillgoiicnwcalilaccunulaicdlyalusingilcofficc of lis failcr.

6Rs.1.00Cr7.11CrRs.30.00CrForestPlantationsndiaLtdSaraswatiPower&ndustriesLtd86.00%PulivendulaPolymersPvtLtd33%SandurPowerCompanyLtd37%BharathiCementCorporationLtd69%0.27Cr7.47CrHarishnfrastructure(P)Ltd99.8%BhagavathSannidhiEstatesPLtd72.77%JananinfrastructurePLtd67.91%SiliconBuildersPLtd94.8%ClassicRealtyPvtLtd100%CarmelAsiaHoldingsPLtd78.84%73.56Cr5.25CrShalomnfrastructurePvtLtd51.56%ndiraTelevisionLtd51.22%JagatiPublicationsPLtd69.12%9.95Cr4.97Cr5.97CrnspireHotelsPvtLtd99.5%4.42CrCapstonenfrastructurePvtLtd99%20.24CrMarvelnfrastructurePvtLtdRs.2.02CrRs.17.00CrRs.1.00Cr0.185Cr2.47Cr1.74Cr12.00Cr78.89Cr1.87Cr23.432.41Cr4.97Cr0.08Cr0.27CrSiliconnfrastructure(P)Ltd99%YSRFamiIyCompaniesNetwork15.00Cr------DenotesDirectnvestmentDenotesRoutednvestment56 79. Illusiraicdlcrcundcr arc insianccs of illcgal aciiviiics andwliicwaslingof corrui/lrilcnoncyrcccivcdilrouglilcsaid conanics in rciurn for ilc favours cicndcd ly Dr. Y.S.Fajascllara Fcddy ly nisusing lis official osiiion.(i} 6DQGXU 3RZHU &R /WG.. Tlis conany was originallyronoicd ly Mr. M.V. Cloradc and oilcrs. Sri Y.S.JaganMolan Fcddy las ialcn ovcr ilc conany in ilc ycar 2001.Tlcconanyiscngagcdinilclusincssofgcncraiionandnarlciingof 22.5M.W. owcr. Tlccsiinaicdcosi of ilcrojcciwasFs.144.59crorcsandncansoffinanccincludcicrnloans of Fs.89.69 crorcs and cquiiy of Fs. 54.90crorcs. Undcr ilc nanagcncni of Sri Y.S.JaganMolanFcddy, ilc conany originally oliaincd financc fronI.F.E.D.A. ly furnisling falsc/falricaicd sccuriiydocuncnis. Infaci, wlcnilc fraud canc io ligli, ilcauiloriiics of IFEDA lavc suscndcd scvcral of iiscnloyccs. Tlanls io ilc inicrvcniion of ilc ClicfMinisicr, noaciionwasiniiiaicdlyilcIFEDAagainsiSriY.S. JaganMolanFcddyandinordcrioconcoui of ilcissuc,ilcylavclorrowcdfronoilcrlanlsioilciuncofFs.90.00 crorcs. Towards ilcir slarc of cquiiy, Dr.FajascllaraFcddyandlissonlavcuncdinilcirill-goiicnnoncyinioSandurPowcrCo. Lid. ilrouglscvcralslcll conanics including conanics of forcign origin.(ii} Tlrougl lawala iransaciions, ilc illcgal graiificaiionanounis lavc lccn iransfcrrcd io Mauriiius and iniroduccdilc sanc inio Mauriiius lascd slcll conanics i.c., M/s. 2iCaiial PCC, Mauriiius and M/s. Pluri Encrging ConanicsPCC. Oui of ilc ioial slarcs issucd ly Sandur owcrconany, 1.75crorcslarcsof faccvalucof Fs.10/- cacl

8wcrcalloiicdioilcscconanicsaiarcniunof Fs.61/-and ilrougl ilis ncilod, ilcy lavc rcccivcd Fs.124.60crorcs. Ai ilis raic, ilc ioial valuc of Sandur Powcr wiil aroduciioncaaciiyofonly22.5M.W.wouldlcnorcilanFs.750 crorc, wlicl iisclf slows ilai ilc allcgcd iransaciionofscllingslarcsaircniunraicofFs.61/-isaconcocicdoncandilcsancisinvcnicdonlyiolaundcrilcill-goiicnnoncy and io iniroducc ilc sanc inio ilc fanily lusincss.(iii} Ii is aosiic io ncniion lcrc ilai Mr. V. Vijaya Sai Fcddy,FanilyAudiiorof Dr. Y.S.FajascllaraFcddywlowasilcaudiiorof Sandurowcrconanyiill ilaidaicwasaslcdiorcsignas audiior and wasaoinicdasDircciorinM/s.SandurPowcrCo. Lid.w.c.f.9.12.2005andfurilcrascr8ilannual rcori of 2006-07, Mr. VijayaSai Fcddy lasrcsigncdfronlisofficcof DircciorsliinDcccnlcr2006.M/s. 2i Caiial PCC, Mauriiius las closcn ilc audiior andcloscconfidcniof ilcnanagcncniasilcirFcrcscniaiivcDircciorinSandurConany. Howcvcr, ilcsaidV. VijayaSai Fcddy las rcsigncdas dirccior wiilinonc ycar andconscqucnily ilcrc is no nonincc dirccior for M/s.2i CaiialPCC, Mauriiics, ai rcscni. Tlis iisclf scals voluncs alouiilc iruc naiurc of iransaciion.(iv} Yci anoilcr ascci of ilc illcgaliiy of ilc said iransaciion isilai ilc uroricd forcign invcsincni anouni was invcsicdin rini ncdia and lroadcasiing ilrougl surrogaics. As crFDI olicy, ilc Fcscrvc Danl of India and FIPD lavcrcscrilcd ilc adninisiraiivc and conliancc asccis offorcign dircci invcsincnis. Undcr ilis, a conany,lanningiosci ulusincssocraiionsinIndia, lasiwooiions i.c., Invcsincni undcr Auionaiic Fouic and

8 9Invcsincniilrouglrioraroval of Covcrnncni. Ascrnoiificaiionissucdlyilcconccrncdauiloriiy, AuionaiicFouicfor forcigninvcsincni isnoi availallciorini andlroadcasiing ncdia. In ilc casc of M/s. Sandur Powcr Co.Lid., ii las rcccivcd ilc allcgcd forcign invcsincni of alouiFs.124.60crorcsfroniwoconanicsi.c. M/s. 2i CaiialPCC, MauriiiusandM/s. Pluri EncrgingConanicsPCCandinvcsicdilcsanciniovarioussulsidiaricsof SandurPowcr, wlicl includc conanics cngagcd in rini andlroadcasiing ncdia.(v} OncsuclsulsidiaryofSandurPowcrisM/s.Carncl AsiaHoldingsPvi. Lid. Tlcsaidconanylassulscrilcdio5crorcs slarcs of M/s. Jagaili Pullicaiions Pvi. Lid., aiFs.10/- andinvcsicdFs.50.04crorcs. Dcsidcs, ilc saidsulsidiarylasalsosulscrilcdio51.22%cquiiyinIndiraTclcvision Lid., and invcsicd a sun of Fs.10 Crorcs. As crilc rovisions of ilc ForcignEclangc Managcncni Aci,1999rcadwiililcCuidclincsof Covcrnncni of IndiaonForcignInvcsincnis, M/s. SandurPowcrCo. Lid. wasnoicligillc firsily io floai sulsidiary i.c. M/s. Carncl AsiaHoldingsPvi. Lid. (aninvcsincni conany} andsccondly,io allow ilc said sulsidiary io invcsi in rini andlroadcasiing ncdia. Hcncc, ilis is a clcar violaiion ofrovisionsofilcForcignEclangcManagcncniAci, 1999and ilc Cuidclincs of Covcrnncni of India on ForcignInvcsincnis.(vi} Dcsidcsindulginginlawalairansaciionsandviolaiionofilc rovisions of ilc ForcignEclangc Managcncni Aci,1999, Dr.Y.S.FajascllaraFcddyandlissoninvcnicdan

10ingcnious ncilod of laundcring lrilc anounis ilrouglilcir fanily conanics. As on 31.3.07, Sri. Y.S.JaganMolanFcddywas lolding 1,69,58,580slarcs of SandurPowcr conany Lid., Oui of ilis, lc sold 1,04,62,500slarcsduringilccriodfron1.4.2007io31.3.2008. Tlciransaciion of salc of slarcs is a slady onc and ilc sanc isonlyinvcnicdfor ilc urosc of rcccivinglrilc anounisfron ilc individuals/conccrns, wlo wcrc confcrrcd lcncfiisly Dr. Y.S.Fajascllara Fcddy ly nisusing lis officialosiiion. If oncloolsaiilcnancsof ilcluycrs, iiwouldunravcl ilcissuc. Sri NinnagaddaPrasad(Mairifanc}urclascd 21,42,860 slarcs Fs.675/- cr slarc andilrouglilis ncilodiisclf, C.M.'s fanily rcccivcdFs.140crorcs lrilc anouni as ilougl ilc sanc is a lcgaliransaciion. Ii is io lc ncniioncdlcrc ilai during ilcsanccriodClirala,Vodarcvu,NizanainanPoriProjcciswcrcalloiicdinfavourofM/s.VanicPorisLid.,inwliclNinnagadda Prasad is lolding conirolling sialc. Aari fronalloiiingorirojccis, ancicniof 18000acrcsof landsofarwasalloiicdinfavourofanoilcrconanynanclyM/s.Vanic Projccis Pvi. Lid., wlicl again lclongs ioNinnagadda Prasad & lis fanily.Inaddiiion, Sri JaganMolanFcddylassoldaloui82.00lallslarcs of Sandur Powcr Fs. 675/- cr slarc iovarious conanics i.c. M/s. ZMInfoiccl, Clcnnai, M/s.Nclcasi Financc Lid., M/s. Eccl Prosofi Lid., M/s. SaiSuryaWarclousingCo. Lid. andM/s. SignaOygcnLid.All ilc said conanics arc slcll conanics of ilc associaicsof Dr. Y.S.FajascllaraFcddy'sfanilyandilciransaciionof salcof slarcsiscnicrcdonlyiolaundcrilcirill-goiicnnoncy. In ilc roccss C.M's fanily laundcrcd ilcir ill-

10 11conanylanningiosci ulusincssocraiionsinIndialas iwo oiions i.c., invcsincni undcr auionaiic rouic andinvcsincni ilrouglrior aroval of govcrnncni. As crilc noiificaiion issucd ly ilc concicni auiloriiyauionaiicrouicfor forcigninvcsincni isnoi availallciorini and lroadcasiing ncdia. Howcvcr, in ilc casc of M/s.Sandur Powcr Conany Lid., ilc said conany rcccivcd ilcuroricd forcign invcsincni of aloui Fs.124.60 crorcsfroniwoconanicsi.c., M/s. 2i Caiial (PCCMauriiius}andM/s. Pluri Encrgingconanicsandfurilcr, SandurPowcr uncd ilc said noncy inio iis various sulsidiarics.M/s. Carncl Asia Holdings (P} Lid., onc sucl sulsidiary lasgoi najor sialcloldinginM/s. Jagaili PullicaiionsPvi.Lid.,andinvcsicd51.22%cquiiyofM/s.IndiraTclcvisionLid. As cr ilc rovisions of FEMA rcad wiil ilc guidclincsof Covcrnncni of India on forcign invcsincnis, M/s. SandurPowcr ConanyLid., was noi cligillc firsily, iofloai ilcsulsidiary i.c., M/s. Carncl Asia Holdings (P} Lid., anInvcsincni Conany and sccondly, io allow ilis sulsidiaryioinvcsiinJagaili PullicaiionsPvi.Lid. Hcncc,ilisisaclcarviolaiionofall ilcrcgulaiorynornsincludingilaiofilcrovisionsof ilcConanicsAci1956andconlianccof Sclcdulc IV and accouniing siandards.10. 0V -DJDWKL 3XEOLFDWLRQV 3ULYDWH /LPLWHG(i} In ycar 2006 Mr. Y. S. Jagan Molan Fcddy lasincororaicdaConanycallcdJagaili PullicaiionsPvi.Lid" wlosc auilorizcd slarc caiial is Fs.50,00,000/-dividcdinio 5,00,000slarcs ai a facc valuc of Fs.10/-cacl. On23rdDcccnlcr, 2006, ilcSlarcCaiial wascnlanccd io 10.00 crorcs slarcs wiil a facc valuc of Fs.10

12anouniing io Fs.100.00 crorcs. Onc of ilc sulsidiarics ofSandur Powcr Co. Lid., viz., Carncl AsiaHoldings Lid.,invcsicd Fs.73 crorcs in Jagaili Pullicaiions luyingslarcs ai ilc facc valuc of Fs.10 cacl. Howcvcr, ilclcncficiarics of largcssc of ilc Clicf Minisicr wcrc nadc ioluy Jagaili slarcs ai an inflaicd raic of Fs.350/- crslarc. In ilc roccss, Y. S.Jagan Molan Fcddy was allciolaundcrFs.425crorcsofill-goiicnnoncy. Asarcsuli,cvcn lcforc Jagaili Pullicaiions siaricd iis lusincss, ii lasacquircd rofiis/surlus funds.(ii} M/s. Jagaili PullicaiionsPvi. Lid., lasalloiicdslarcsioiis ncnlcrs ai a rcniun of Fs.350/- io variousConanics/crsons wlicl wcrc alloiicd variousgovcrnncni lands, rojccis and coniracis. Tlus Conanicsand individuals, wlo wcrc lcncfiicd in ilc forn ofalloincni of lands for Sccial Econonic Zoncs (SEZ},irrigaiion rojccis, sccial rclaaiion for consiruciion ofluildings cic., undcr ilc guisc of luying slarcs ai arcniun, lavc in faci aid licllacls io Y. S. JagannolanFcddy, son of Dr. Y.S. Fajascllara Fcddy.(iii} Dusincss rudcncc would suggcsi ilai Conanics siiuaicdinfar off laccslilcKollaia, Howral, Munlai, Clcnnaicic.,wouldilinliwicclcforcinvcsiinginarcgionalDailylilcilc'Saalsli' NcwsacrinAndlraPradcsl. Dui, 12slcll Conanicslavclcconcinsiruncnisof rouiingill-goiicnnoncy inio Jagaili Pullicaiions. Tlc so-callcdPrivaic Placcncni was ncvcr coniriluicd ly ilc saidConanics, luiDr. Y. S. FajascllaraFcddysiloncdofflislrilcnonics, uiilcniniloscConanicsandilcninvcsicd ilc sanc undcr ilc guisc of aying rcniun

12 13anouni on slarcs. Tlis is a clcar casc of MoncyLaundcring.(iv} Forilcuroscof invcsiinginJagaili PullicaiionsPvi.Lid.", various conanics lavc asscd rcsoluiions asrcquircdundcrilcConanicsAci. Acrusal of ilcsaidFcsoluiions wouldclcarly slowilai ilcy wcrc vcrlaiinidcniical including ilc unciuaiion narls lilc uiiing siarnarl in ilc rcsoluiions. Onc norc fcaiurc of ilcscinvcsincnis is ilai nosi of ilcnlclong io Howral,Munlai, Kollaia, Clcnnai, wlcrc ilc circulaiion of aTclugu Daily is ncgligillc. Tlus, ilc cniirc nodus ocrandiofinvcsiinginancwTcluguDailyandissuanccofslarcsof a ncw Conany ai a rcniun ricc is a clcar indicaiionof ilc ncclanisn of noncy laundcring.Tlc dciails ncniioncd lclow will clcarly slow ilai JagaiiPullicaiions, wliclwasincororaicdon14ilJunc2006wiilnolusincss iracl rccord, is allc io alloi slarcs ai a vcry liglrcniunof Fs.350/-crslarc. Tlccniircccrciscclcarlyslowsilai corrui noncy accrucd ly alusing ilc officc of Clicf Minisicrfor ilc official lcncfiis granicdioConanics andindividuals isiransniiicd io Jagaili Pullicaiions Pvi. Lid., in ilc forn of luyingslarcsaiarcniun.Tlccorruinoncyissougliiolclcgalizcdlyaullicofficcloldcr coniraryioilcrincilcsof ulliclifc,rcvcniion of corruiion Aci and oilcr cnal laws.11. Sonc insianccs of corrui noncy rouicd io Dr. Y.S.Fajascllara Fcddy's fanily conanics ilrougl Jagaiiullicaiions arc as follows.-

14x M/s.CilclrisiInvcsincnisPrivaicLiniicdwasnadcioluy11,11,109slarcsaiarcniunraicof Fs.350/-anouniingio Fs. 40.00 crorcs. Tlc cccss anouni aid ly ilcConany ovcr and alovc facc valuc is Fs.38.90 crorcs.x M/s.AllaVillasPrivaicLiniicdwasnadcioluy4,16,666slarcs ai a rcniun raic of Fs.350/- anouniing io Fs.15.00crorcs. Tlccccssanouni aidlyilcConanyovcr andalovc facc valuc is Fs.14.58 crorcs.x M/s. Alla Avcnucs Privaic Liniicd was nadc io luy4,16,666 slarcs ai a rcniun of Fs.350/- anouniing io Fs.15.00 crorcs. Tlc cccss anouni aid ly ilc Conany ovcrand alovc facc valuc is Fs. 14.58 crorcs.x Tlcclicf ronoicr of Cilclrisi Invcsincnis and AllaCrou of Conanics, Sri N. Prasad was alloiicdNizanainan and Clirala Voda Fcvu Poris on Duild, OcraicandTransfcrlasiswiilfavorallcicrnsandcondiiions. SriN. Prasad is ronoicr of ilc conany i.c., Vanic Poris Lid.,wlicl was alloiicd ilcsc oris.x M/s. Ercs Projccis Privaic Liniicd was nadc io luy 2,22,222slarcs ai a rcniunof Fs.350/- anouniing io Fs.7.78crorcs. Tlccccssanouni aidlyilcConanyovcrandalovc facc valuc is Fs.7.56 crorcs.x ErcsProjccisPvi.Lid.,wliclisowncdlyilcFanlyCrouwas alloiicd valuallc Housing Doard land ai Caclilowli ai ailrow away ricc and also alloiicd lands for SEZ aiVisallaainanand ilis Crou also was alloiicd various

14 15Irrigaiion Projccis.x M/s. Hcicro Hcalilcarc Liniicd was nadc io luy 27,777slarcs ai a rcniunof Fs.350/- anouniing io Fs.97.21lalls. TlccccssanouniaidlyilcConanyovcrandalovc facc valuc is Fs.94.50 lalls.x M/sHcicroDrugsLid. wasnadcioluy 41,666 slarcs wiilan cccss ayncni of Fs. 1.46 crorcs.x M/sHcicroLalsLid. wasnadcioluy41,666slarcswiilan cccss ayncni of Fs. 1.46 crorcs.x HcicroCrouwasalloiicd240.07acrcsof landforSEZaiNallaalli and also anoilcr SEZ ai Jcdclcrla.x M/s. Pionccr Infrasiruciurc Holding Liniicd was nadc io luy5,55,555slarcsaiarcniun of Fs.350/-anouniingioFs.20.00 crorcs. Tlc cccss ayncni lcing Fs. 19.44crorcs.x Tlis Conany is owncd ly Sri P. Praia Fcddy, forncrTrcasurcr of A.P. Congrcss Conniiicc and a closc confidanicandindusirialisi fricndof Dr. Y.S. FajascllaraFcddy. Hcwasgivcnvariousconiracisai cscalaicdriccs. Aari fronilai, lc is also ilc lcncficiary of rclaaiion of DuildingFcgulaiionswliclcnallcdlinioconsiruciaSiarHoiclonFoad No.2, Danjara Hills vidc C.O.Ms.No.329 daic23.04.2005andC.O.Ms.No.771daicd27.08.2005.TlcsaidC.Os wcrc issucd only io lcncfii lin.

16x M/s. P.V.P. DusincssVcniurcsPvi. Lid., wliclwasalloiicd13,88,888 slarcs in Jagaili Pullicaiions Pvi. Lid., ai arcniun raic of Fs.350/-. Eccss ayncni in ilis casc lcingFs.48.61crorcs. TlisconanyindulgcdinscandalousdcalofluyinggovcrnncnilandinancicniofAc.595conriscdin survcy Nos. 664 &721, siiuaicd ai Nadcrgul villagc,Saroor Nagar Mandal, Fanga Fcddy Disirici. Tlc saidconanyaidilclrilcanouni undcr ilcguiscof luyingslarcs ai rcniun raic. Tlc said ccrcisc was only io roicciilcillcgal iransaciionandasaconscqucnccnoaciionwasiniiiaicdagainsi ilc saidconany, wlicllas indulgcdinluying largc iracis of govcrnncni lands and ilc ClicfMinisicr dirccicd ilc rcvcnuc officials noi io iniiiaic anyaciion io rcosscss ilc illcgally oliaincd govcrnncni land.x Incsscncc,ilcinvcsincniofFs.350crorcsnadcinJagaiiPullicaiions ly various lcncficiarics of ilc nisfcasancc ofilc C.M was clcarly ilc corrui noncy.5DJKXUDP &HPHQWV /LPLWHGx Sinilarly, Clicf Minisicr, Dr. Y.S. Fajascllara Fcddy alloiicdlugc cicnis of lands/nincs io M/s. FagluranCcncnisLid., (inwliclC.M's sonis laving conirolling sialc} andaluscdlis officc ly confcrring favours/lcncfiis iovariousconanics/individuals and nadc ilcn io luy slarcs of M/s.FagluranCcncnisLid.,(DlaraiiCcncniCororaiionLid.,}ai arcniunof Fs.94/- ioFs.1440/- cr slarc. All ilcslarcloldcrs invcsiing in ilis conany arc dirccily/indirccilylcncficiarics of ilc nisfcasancc of Dr. Y.S. FajascllaraFcddy i.c., awarding rojccis/nincs/coniracis in various

16 17govcrnncni dcarincnis. If Dr. Y.S. Fajcslclar Fcddy'sfanily sialc in FagluranCcncnis (rcscnily lnown asDlaraili Ccncni CororaiionLid.,} issold/disoscdai ilcricc givcn io onc sialc loldcr (M/s. Dalnia Ccncnis Lid., aiFs.1450/-}, Dr. Y.S. Fajascllara Fcddy's fanily will gciFs.6500crorcswliclisnoilinglui cncaslingilcofficialosiiion ly alusing ilc ullic officc of Clicf Minisicr.SHARE CAPITAL DETAILS OF BHARATHI CEMENT CORPORATION LTDDate ofAIIotmentName of Share HoIder No.ofSharesShareVaIuePremium AmountRs. (Cr)25-10-06 Silicon Builders P Ltd 3000000 10 /- -- 3.0025-10-06 Sandur Power 185000 10/- -- 0.18525-01-07 Y.S. Jagan Mohan Reddy 30000000 10/- -- 30.0025-01-07 Silicon Builders P Ltd 12000000 10/- -- 12.0029-03-07 Dalmia cements Ltd 1666600 10/- 110/- 20.0009-04-07 G-2 Corporate Ltd 6442300 10/- 94/- 67.0010-09-07 ndia Cements Ltd 1250000 10/- 110/- 15.0012-11-07 Nimmagadda Prasad 459459 10/- 175/- 8.5026-02-08 Dalmia Cements Ltd 137931 10/- 1440/- 20.0031-03-08 Dalmia Cements Ltd 68965 10/- 1440/- 10.00TotaI 5,40,85,255Valuaiion of conany slarcs ai four diffcrcni riccs as indicaicdalovcinasloricriodofovcroncycarclcarlycsiallislcsilaiiiwas only ncani for dircciing corrui rocccds inio own conanics.Esiallislcd and lisicd conanics and ccncni najors DalniaCcncnis and India Ccncnis wlosc slarc valucs arc around Fs. 40&Fs. 110rcscciivclyluyingslarcsof Dlaraii ccncni, wliclisyci io conc inio roduciioniisclf scals for ilc ncclanisnofnoncy laundcring ly ilc C.M and lis fanily.In faci, ilc valuaiion of Jagaii Pullicaiions ai Fs. 3500 crorcs wiilavicwiodccidcilcslarcriccaiFs. 350crslarcwasonlyiolarvcsi corruiion of ilc C.M.171812. Tlc dciails cnuncraicd in aras 9, 10 and 11 arc csiallislingilcfacilcyonddouliilaiilcquidroquononcyinrciurnforilc favours cicndcdly ilc Clicf Minisicr was invcsicdinlisson's Conanics.13. Dcsidcsilcalovcillcgal iransaciionsDr. Y.S. FajascllaraFcddy's fanily floaicd/acquircd various slcll invcsincniconanics io rouic ilcir illcgal wcalil and io laundcr ilc sanc. Ifonc gocs ilrougl ilc annual rcoris of M/s. Sandur PowcrConany Lid., M/s. Jagaili Pullicaiions Lid., and M/s. FagluranCcncnis Lid., (rcscnily lnows as M/s. Dlaraili CcncniCororaiion} ilc sanc would rcvcal ilc cisicncc of ilc undcrncniioncd conanics.i. Saraswaii Powcr & Indusirics (} Lid., (3.02 Crorcs}ii. Silicon Infrasiruciurc Pvi. Lid., (3.47 Crorcs}iii. Carncl Asia Holdings Pvi. Lid., (12.08 Crorcs}iv. Pulivcndula Polyncrs Pvi. Lid., (1.00 Crorcs}v. Silicon Duildcrs Pvi. Lid., (23.70 Crorcs}vi. Classic Fcaliy Pvi. Lid., (78.89 Crorcs}vii. Marvcl Infrasiruciurc Pvi. Lid., (20.24 Crorcs}viii. Dlagwail Sannidi Esiaics Pvi. Lid., (2.41 Crorcs}i. Janani Infrasiruciurc Pvi. Lid., (9.95 Crorcs}. Jagaii Pullicaiions Pvi. Lid., (73.56 Crorcs}(Saalsli Tclugu Ncws Daily}i. Indira Tclcvision Lid., (Saalsli TV} (10.22 Crorcs}ii. Slalon Infrasiruciurc Pvi. Lid., (8.98 Crorcs}iii. Dlarii Ccncni Cororaiion Lid., (45.18 Crorcs}iv. Harisl Infrasiruciurc Pvi. Lid., (4.97 Crorcs}v. Insirc Hoicls Pvi. Lid., (5.97 Crorcs}vi. Casionc Infrasiruciurc Pvi. Lid., (4.42 Crorcs}

18 19(gucs n IucIcts uIouc uc tIc nucstmcnts mudc I C.M`sum/conccns utc D. Hcdd Iccumc tIc CIc Mnstc. TIc totunucstmcnt tIus mudc umounts to Hs. 3US cocs)14. KindlyalsocruscilcfollowingiallcwliclliglliglisilcfinancialcondiiionofilcConanicswlicllavcinvcsicdinJagaii Pullicaiions. Tlcsc anounis lavc lccn rccordcd fronilc Dalancc Slccis of ilcsc Conanics for ilc financial ycarcnding Marcl 2008 and filcd wiil ilc Fcgisirar ofConanics.S.No. Name oI tbeCompanyProIIt ason 31stMar 200S(In Rs)CarrIedForward(Ioss)JProIIt(In Rs)AmountInvested InJagatI(In Rs)1. Dclion EinPvi. Lid1688.70 (40068.62} 5,49,99,7202. Kirii ElcciroSysicns3368.51 28768.96 49,99,6803. Day InlandFinancc3541.76 (13655.46} 2,59,99,9204. Dlaslar FundManagcncniLid47009.76 45128.79 2,49,99,8405. ClifionsPcarson Eori& Agcncics Lid1912.12 (133206.59} 6,14,99,8806. Canga DuildcrsLid1808.90 (1588699.98} 3,99,99,9607. Isai SlccisLid9952.33 (22706.34} 3,49,99,9208. Cronorc FundMgi Co Lid1459.73 (17349.99} 1,99,99,8009. Ncw OuiloolSccuriiics2192.50 (35879.22} 4,74,99,84010. Sucr FinanccLid1834.90 64606.33 1,99,99,80011. Slalii IsaiProd. Pvi Lid1380.90 (646656.56} 4,99,99,68012. SlivalaniEoris Lid1712.85 (4042.66} 2,49,99,84013. SioclnciInicrnaiional (106708} (4530974} 99,99,720

20Lisicd on DSE14. Ariillcgcncc DioInnovaiion-Lisicd on DSE49,99,680727$/ (13645.04} (68,94,735.34} 42,49,97,28015. Iiiscvidcnifronilcalovciallcilai14conanicswiilaaccunulaicdlossof Fs. 68.95lacslavcinvcsicdFs. 42.50crorcs in 2007 and 2008 in Jagiii.16. Fron a crusal of ilc lalancc slccis filcd wiil ilc Fcgisirarof Conanics ii can lc olscrvcd ilai all ilc alovc ncniioncdconanics lavc cross-loldings, nany of ilcn lavc connondircciors, and lanl accounis of all ilc conanics arc ai iwolranclcs viz., HDFC Danl, Col Parl, Kollaia and Tlc SouilIndia Danl Liniicd, Daliganj, Kollaia.17.Two of ilc alovc ncniioncd Conanics viz., SioclnciInicrnaiional andAiiillcgcnccarclisicdonilcDSE. Tlcscconanicsarccurrcnilyiradingai Fs1.32cr slarcand0.42crslarcandlavcronoicrloldingof 0.03%. Ii isalsonoicworilyilaiinloililcscconanics,ilcinvcsiorsarc ilc 12 oilcr conanics ncniioncd alovc.18.Tlisisaclcarindicaiionof rouiingill-goiicngainsilrougllnownslcllconanics.Iiisalsocriincniioliglligliilainosi of ilcsc conanics arc lcing and lavc lccninvcsiigaicdly SEDI for unfair iradc raciiccs andfraud.Sonc of ilcsc Conanics lavc alrcady lccn rosccuicd.19.Tlc lacl of roliiy inullic lifc lcads io ligldcgrcc ofcorruiion. Tlc scalc andnagniiudc of ilc corruiionascvidcnccdlcrcin,wouldlcadioafurilcrcrosionoffaiilin

20 21ilc loldcrs of ullic officc ly ilc vasi najoriiy of our colc.Pcolcalrcadyslciical of ullicrcrcscniaiivcswouldlcfurilcr alicnaicd and ui ilc cniirc insiiiuiion of dcnocracyai rislnorcsowlcnilcHcadof Covcrnncni isilcnainculrii. Pcolc arc conccrncd aloui roliiy in ullic lifc andsuclincrcascincorruiionwill noi advanccilccauscofdcnocraiic insiiiuiions in our couniry.20.Tlc Prcvcniion of Corruiion Aci was cnacicd ly Parliancniinullicinicrcsi.Iiisolviousilaicorruiioncorrodcsilcnoral falric of ilc sociciy and corruiion ly ullic scrvanisnoi only lcads io corrosion of ilc noral falric of sociciy, luiis also larnful io ilc naiional cconony and againsi naiionalinicrcsis.IfcrsonsoccuyingliglosiinilcCovcrnncniindulgc innisuscof ilcir owcr, ilc rcsuliani corruiionwouldcauscconsidcrallcdanagcionaiional inicrcsi andilc inagc of ilc couniry.21.TlclrascullicduiywasdcfincdundcrScc.2(l} of ilcPrcvcniion of Corruiion Aci as follows.udutntIcdscIugco uIcItIcStutc, tIcPuIcotIcCommuntut ugcIus unntccst undtIcdcntono PuIcScuunt undcScc.2(c)mcuns uncsonntIcscuccouotIc Coucnmcnt o cmuncutcd I tIc Coucnmcnt I ccs ocommsson o tIc comuncc o un uIc dut".Cuusc2(c) VIII dcncsuIcscuunt usAncsonuIoIods un occ I utuc o uIcI s uutIozcd o cqucd to comun uIc dutUndc Scc.? o tIc Act, PuIc Scuunt tuIng gutcuton otIc

22WKDQ OHJDO UHPXQHUDWLRQ LQ UHVSHFW RI RIILFLDO DFW VKDOO EH SXQLVKDEOHZLWK LPSULVRQPHQW DQG ILQHTlc Surcnc Couri of India las lcld ilai ilc loldcrs of officcof Clicf Minisicr conc wiilin ilc dcfiniiion of Pullic Scrvani.22.Tlus, Dr. Y. S. FajascllaraFcddyisaullicscrvani andilc facis narraicd alovc clcarly csiallisl ilai lc and on lislclalf lis son aggrandizcd ccuniary lcncfiis ly alusing ilcofficcof Clicf Minisicrandilcyarcinosscssionof asscisdisrooriionaicioilcir lnownsourccsof inconcandassuclarcliallciolcrosccuicdforilcoffcnccsconniiicdly ilcn.23. Tlus, as on 31.03.2004, Dr. Y.S. Fajascllara Fcddy'sfanilyannual inconcwasonlyFs. 41.08lallsandasscisworilonlyFs.2Crorcs. DuiaficrDr.FcddylccancClicfMinisicr, lis fanily/conccrns acquircd cororaic asscisworil scvcral ilousands of crorcs. Fron ilc flow ofinvcsincnis inio only ilrcc conanics alonc i.c., SandurPowcr, Jagaii ullicaiionandDlaraii Ccncni Cororaiion,ilcC.M'sfanily/conccrnslavclcconcriclcrlycororaicasscisofalouiFs.10,000crorcs.Ifilcsladyiransaciionsinvolving a losi of fanily owncd conanics and nassivcacquisiiionof landsandoilcr rocriicswcrciolcialcninio accouni ii would lc asirononically liglcr. All ilcscasscis wcrc acquircd ly Dr. Y.S. Fajascllara Fcddy's fanilyly alusing ilc officc of C.M.24. Infaci, Dr. Y.S. Fajascllara Fcddy ullicly dcclarcdon28.07.2006ilai lis sonwas gciiing Fs.40Crorcs annualinconc wlicl in faci was only Fs. 11.02 lalls in 2003-04 as

22 23cr I.T. rciurns. How would ilis ossillc lui for gross aluscof owcr and auiloriiy of lis failcr Clicf Minisicr?25.Misfcasancc in ullic lifc las lccn dcfincd as naliciousaluscof owcr, dclilcraicnal-adninisiraiionandunlawfulaciscausinginjury. Misfcasanccinullicofficcisaiool ofdclilcraicaluscofowcrandilcPullicOfficcrisliallcforlis aciions. Aari fronconnission of offcncc undcr ilcrcvcniionof corruiion,Dr.Y.S.FajascllaraFcddydcficdilcoailialcnlylinwlilcassuningilclallowcdullicofficc of Clicf Minisicr.26.Fronilc facis narraicdalovc, ii is crysial clcar ilai ilcClicf Minisicr, Dr. Y. S. Fajascllaraa Fcddy, wlilcdisclarging official funciions, las slown favouriiisn iovarious individuals, cororaic lodics as ncniioncd alovcwiilanulicriornoiivc. Illcgal graiificaiionforsuclfavourswas aid ilrougl various slcll conanics of lis son and lisassociaics. Tlc dciails of ilc slarcs and ilc rcniunanouni aid ly Conanics arc lcrcwiil annccd($QQH[XUH}.27.Tlc insiiiuiions of dcnocracy lavc lccn sysicnaiicallywcalcncd ly ilc ranl corrui aciiviiics of ilc Clicf Minisicrof Andlra Pradcsl. Tlc adninisiraiivc naclincry inilcsiaicisnircdwiilincfficicncyandinciiiudconaccouniofilclrazcnlawlcssncssof ilclcadof ilcgovcrnncni. Ifsucl rovcn insianccs of corruiion and lawlcssncss arcallowcdiogoscoi-frcc, ilcsancwill cai inioviialsof ilcoliiy cndangcring ilc vcry cdificc of dcnocraiic valucs of ilccouniryandrulcof law. Pcolcwill loscfaiilinoliiicalsysicn.

2428.Tlc alovc facis and narraiion conclusivcly dcnonsiraicviolaiion of.a} Tlc Anii Corruiion Acil} Tlc Conanics Acic} Tlc Forcign Eclangc Managcncni Acid} Tlc Inconc Ta Acic} Tlc Fcscrvc Danl of India Acif} Tlc Moncy Laundcring Aci29.Wc, ilcrcforc, urgcYourEccllcncyiodircciilcconccrncdfor iniiiaiing rosccuiion againsi Dr. Y.S. FajascllaraFcddy, Clicf Minisicrof AndlraPradcslandoilcrsinilcinicrcsi of roliiy in ullic lifc.Wiil Fcgards,Yours sinccrcly,(K. Narayana} (D.V. Faglavulu} (K. Clandrascllara Fao} (N. Clandralalu Naidu}Siaic Sccrciary Siaic Sccrciary Prcsidcni PrcsidcniC.P.I. C.P.M T.F.S. T.D.P.Sni Praiilla Dcvi Singl Paiil ji,Hon'llc Prcsidcni of India,Fasiraaili Dlavan,Ncw Dclli.

24 252626 272828 293030 313232 333434 353636 373838 394040 414242 434444 454646 474848 495050 515252 535454 555656 575858 596060 616262 636464 656666 676868 697070 717272 737474 757676 777878 798080 818282 838484 858686 878888 899090 919292 939494 959696 979898 99100100 101102102 103104104 105106107SANDUR POWER COMPANY LIMITED9THANNUAL REPORT 2007-08BOARD OF DIRECTORSSHRI Y S JAGAN MOHAN REDDY CHAIRMAN and MANAGINGDIRECTORSHRI HARISH C KAMARTHY EXECUTIVE DIRECTORSHRI J J REDDY WHOLE-TIME -DIRECTORDR H B NSHETTY DIRECTORSHRI H V ESWARAIAH DIRECTORSHRI A N PRAKASH RAO DIRECTORSHRI B RAMESH BABU DIRECTORCOMPANY SECRETARYR. Siva KumarAUDITORSM/s Deloittee Haskins & SellsChartered Accountants, Bangalore.REGISTERED OFFICE84, 16thCross, 14thMain, 4thSector, HSR LayoutBangalore - 560 034Ph : 080 42824444Fax: 080-42824400Email : info@sandurpower.comWebsite: http://www.sandurpower.comFACTORY SITEHosangadi Village, Kundapura TalukUdupi District-576282KARNATAKABANKERSOriental Bank of Commerce, BangalorePunjab National Bank, Mangalore108EQUITYSHAREHOLDINGPATTERNASONSeptember03,2008Sr.NoCategoryTotalNo.OfsharesTotal%OfshareHolding1.PromotersandPersonActinginconcert3346567762.542.OCBandForeignPrivateCorporateBodies1754930732.793Others25000034.67GRANDTOTAL53514987100.00DETAILSOFPREVIOUSTHREEGENERALMEETINGS:LocationandtimewherelastthreeAnnualGeneralMeetingswereheldisgivenbelow:FinancialyearDateLocationoftheMeetingTime2004-05September29,2005#84,16thCross,14thMain,4thSector,HSRLayout,Bangalore-56003410.30AM20005-06September29,2006#84,16thCross,14thMain,4thSector,HSRLayout,Bangalore-56003410.30AM2006-07September28,2007#84,16thCross,14thMain,4thSector,HSRLayout,Bangalore-56003411.30AM9THANNUALGENERALMEETINGDATE:SEPTEMBER30,2008DAY:TUESDAYTIME:11:30A.M.Place:REGISTEREDOFFICE84,16thCross,14thMain,4thSector,HSRLayoutBANGALORE-560034Ph:08042824444108 109N O T I C ENOTICEisherebygiventhattheNinthAnnual General Meetingof SANDURPOWERCOMPANYLIMITEDwillbe held on Tuesday,30thSeptember 2008 at 11.30 A.Mat theRegisteredOfficeat 84, 16thCross, 14thMain, 4thSector, HSRLayout, Bangalore-560034, totransact the following business:ORDINARY BUSINESS:1. Toreceive, consider, approveandadopt theauditedProfit andLossAccount for theyearended31stMarch2008, theauditedBalanceSheet as at that dateandtheDirectors` andAuditors` reports thereon.2. Toappoint aDirector inplaceof Mr. HVEswaraiah, whoretiresbyrotation, andbeingeligible, offers himself for reappointment:3. To appoint Auditors of the Company for the yearSPECIAL BUSINESS:4. To consider andif thought fit, to pass withor without modification, the followingresolution as ORDINARY RESOLUTION:~RESOLVEDTHATMr.ANPrakashRao,whowasappointedbytheBoardofDirectorsasanIndependent DirectoroftheCompany, from25thOctober2007, andwhoholdsofficeuptothedateoftheforthcomingAnnualGeneralMeetingundersection260oftheCompaniesAct,1956, andinrespect of whomthe Companyhas receiveda notice inwritingproposinghiscandidature for the office of Director under section 257 of the Act, be and is hereby appointed asa Director of the Company liable to retire by rotation.5. To consider andif thought fit, to pass withor without modification, the followingresolution as ORDINARY RESOLUTION:~RESOLVED THAT Mr. B Ramesh Babu , who was appointed by the Board of Directors as anIndependent DirectoroftheCompany, from28thMarch 2008, andwhoholdsofficeuptothedate of the forthcoming Annual General Meeting under section 260 of the Companies Act, 1956,andinrespectofwhomtheCompany hasreceivedanoticeinwriting proposing hiscandidaturefortheofficeofDirectorundersection257oftheAct,beandishereby appointedasaDirectorof the Company liable to retire by rotation.Place: Bangalore By the Order of the BoardDATE: September 3, 2008Sd.Registered Office:84, 16thCross, 14thMain R Siva Kumar4thSector, HSR Layout Company SecretaryBangalore - 560034110NOTES:1. AMEMBERENTITLEDTOATTENDANDVOTEATTHEMEETINGISENTITLEDTOAPPOINTAPROXYTOATTENDANDVOTEINSTEADOFHIMSELF AND PROXY NEED NOT BE A MEMBER OF THE COMPANY.2. The Proxy, in order to be effective, must be deposited at the Registered Office of theCompany not less than 48 hours before the commencement of the Meeting.3. Members arerequestedtointimatechangeintheir address if anyimmediatelytotheCompany at its Registered Office quoting their folio numbers.4. Members are requested to bring their copies of the Annual Report for the meeting.5. All material documents areopenfor inspectiononall workingdays at theRegisteredOffice of the Company till the conclusion of the meeting.6. Shareholdersseekingany informationwithregardtoaccountsarerequestedtosendtheirqueriesat least 7daysbeforethemeetingsoastoenablethemanagement tokeeptheinformation ready.7. Members/Proxies should bring the admission slip duly filled in for attending the meeting.8. Additional Information on item 2,3 & 4 to the notice:Reappointment of Directors:At theensuingAnnual General Meeting, Shri HVEshwariahretires byrotationandbeing eligible offer themselves for reappointment. The particulars of the aforesaidDirectors are given below:Profile of Directors retiring by rotation:Mr. HV Eswaraiah is a Civil Engineer by qualification. He has also done postgraduationincivil engineeringfromIndianInstituteof Science, Bangalore, andpostgraduate diploma in business management from Central College, Bangalore. He has hada wide range of experience in Karnataka Power Corporation Ltd., SiddagangaInstituteofTechnology,Tumkur& PublicWorksDepartmentofKarnataka.Hehasalsobeenworkingasconsultantin NTPC andMemberofPanelof Experts,KarnatakaPowerCorporation Ltd. & Tehri Hydro Development Corporation.Hehas alsohadexposureas NomineeDirector of IREDA(IndianRenewableEnergyDevelopment Agency)inMysorePaperMillsfrom1998to2005andLendersEngineerfor power projects for companies like IDFC, AB, OBC, PNB, SBH, SBI & SBM.110 111Re-appointment of auditor:M/s Deloittee Haskins &Sells, Chartered Accountants, Bangalore, retire and beingeligible have signifiedtheirwillingnessforthe re-appointmentasAuditorsandfurnishedthe required certificate under Section 224 (1B) of the Companies Act, 1956. Theshareholders of thecompanyarerequestedtoappoint M/s DeloitteeHaskins &SellsChartered Accountants, Bangalore, as Auditor of the company.Place: Bangalore By the Order of the BoardDATE: September 3, 2008 Sd.REGISTERED OFFICE: R Siva Kumar84, 16thCross, 14thMain Company Secretary4thSector, HSR LayoutBangalore - 560034112ANNEXURE TO THE NOTICE:Explanatory Statement under Section 173 (2) of the Companies Act, 1956ITEM: 4Mr. ANPrakashRaowasappointedasanadditional Directorof theCompanywitheffectfrom25thOctober 2007andholds officeupt tothedateof theensuringAnnual GeneralMetting. Noticeinwirtingu/s 257of theCompanies Act has beenreceivedfromashareholdersignifyinghisintentiontoproposeMrMr. ANPrakashRaoasacandidatefortheoffice of the director.Mr. A NPrakash Rao aged about 60 years has done BE (Mechanical) &PGDBM(Marketing) from XLRI, Jamshedpur.Hehas stints invarious companies withvariedexperience. Hehas workedas ManagingDirector of Universal Petrochemical Pvt. Ltd., Consultant for ZiaEnergy, Dallas, Texas,USA,GroupHeadofNationalSales& MarketinginHyundaiMotorIndiaLtd.,Technical&CorporateAffairs Director inVolvoIndiaPvt. Ltd., General Manager-National Sales inHyundai Motor India Ltd. and Head of Southern Region in TELCO (Tata Motors).TheBoardofDirectorsfeelsthathisvastexperiencewilladdvaluetothecompany.Hencethe board recommends the resolution for your approval.None of the directors of the Company is concerned or interested in the said resolution8ITEM 5:Mr.BRameshBabu appointedasanadditionalDirectoroftheCompanywitheffectfrom28th March 2008 and he holds office up to the date of the ensuing Annual General Meeting.Noticeinwritingu/s 257of theAct has beenreceivedfromashareholder signifyinghisintention to propose Mr. B Ramesh Babu as a candidate for the office of the Director. Mr. BRamesh Babu aged about 46 years has done Msc and has more than 25 years experience inpowersector,mineandinfrastructurefields.Hehaspartneredsuccessfullymanypowerandmineral ventures.The Directors commend the Resolution for the approval of the members.None of the directors of the Company is concerned or interested in the said resolution.Place: Bangalore By the Order of the BoardDATE: September 3, 2008 Sd.REGISTERED OFFICE: R Siva Kumar84, 16thCross, 14thMain Company Secretary4thSector, HSR LayoutBangalore - 560034112 113DIRECTORS' REPORTToThe Members,Sandur Power Company LimitedYour Directors have pleasure in presenting the Ninth Annual Report along with AuditedStatement of Accounts for the year ended 31st March 2008.1. Financial ResultsAmount in Rs. LacsIncome 2007-08 2006-07Revenue:Sales of EnergyOther income3574.2459.333030.07174.64Gross Revenue 3633.57 3204.71Expenditure :Employees Remuneration andBenefitsGeneration, Administration &Other ExpensesInterest and Finance ChargesDepreciation351.66357.3297.25587.31183.99306.4294.75585.80Total Expenditure 1393.54 1170.96Profit before TaxProvision for Tax :Profit after Tax2240.03275.001965.032033.75253.001780.752. FINANCIAL PERFORMANCETotal revenues of thecompanyfor theyear increasedby13%toRs. 3633.57Lacs fromRs.3204.71Lacsandthereisanincreaseof10%intheNetProfittoRs1965.03LacsfromRs 1780.75 Lacs.1143. OPERATIONAL PERFORMANCE:The performance of the Plant and the Energy generated during the year under report is asunder:-Plant Availability (%) Generation of Saleable Energy in Lacs95.00 1118.15Thetarifffortheyearunderreport, inaccordancewiththePowerPurchaseAgreement(PPA), worksouttoRs.3.016perunit. ThegenerationofthePlantduringtheyearwasgood. TheSaleableEnergyworkedoutto1118.15Lakhunits. ThePowergeneratedbythecompanyhasregisteredanincreaseof 8.92%over thepreviousyear generationof1026.51 Lakh units.4. OUTLOOKTheDirectorsofyourCompanyarepleasedtoreportthatthegenerationofenergyunitsduring theyearunderreportwassatisfactory.ThePlantgenerated1118.51LakhunitsofsaleableEnergy.ThePlantavailability achievedwas95%.ThePlantLoadFactorworksout be 57%whichis one amongthe best figures inKarnataka inHydro-GenerationIndustry. Theavailabilityof water inVarahi tail raceissatisfactory. TheCompanyishopeful that barringunforeseenevents, thePlant wouldgeneratefull designatedenergyduring the current year.Notwithstanding the global economic crisis and the resultant turmoil that has engulfed allover the world, India is projected to relatively come out unscathed. Looking at the growthof the Indian economy and the consequent demand on infrastructure services, thecompanyhopes tocashintheopportunities providedintheprocess. Takingthis intoaccount, the company is hopeful of doing well in future.5. DIVIDENDIn order to conserve the resources for meeting the expansion plans of your company, yourDirectors regret their inability to recommend any dividend for the Financial Year 2007-08.6. TRANSFER TO GENERAL RESERVEDuringtheyearunderreview, wehavenotrecommendeddividend, hencetherewasnotransfer toGeneral Reserveandalsonotransfer for creationof specificreserves. Theentire profit was retained in Profit and Loss account.7. FIXED DEPOSITSTheCompanyhas not invitedor acceptedanyfixeddeposits duringtheperiodunderReport.114 1158. SHARE CAPITALThecompanyhasallotted0%ConvertiblePreferenceShares, convertiblewithin7to9yearsinoneormoretranchesagainst onefullypaidupequityshareofRs10eachforfullypaidup10sharesof0%convertiblepreferenceshares, foratotalconsiderationofRs 20.85 crores to M/s Silicon Infrastructure Private Limited.9. INTER CORPORATE DEPOSITSInterCorporateDepositsofRs8.50croresobtainedfromIndiaCementsLtd. hasbeenrepaid.11. TAKEOVERAspartofitsstrategytomaximizevalueforitsshareholders, thecompanyadoptsbothorganicandinorganicapproachfor growth. Adoptingtheinorganicpath, thecompanyhas acquired M/s Harish Infrastructure Private Limited by subscribing to 4,975,000equityshares of Rs 10eachfor astakeof 99.80%. M/s HarishInfrastructurePrivateLimited, therefore, becomes subsidiary of your company.Besides this, M/sSiliconBuilders Pvt. Ltd., asubsidiary, hastakenover M/sShalomInfrastructure Pvt. Ltd. and M/s Inspire Hotels Pvt. Ltd.Another subsidiary, M/s Classic RealtyPvt. Ltd., has attainedmajoritystake inM/sCapstone Infrastructure Pvt. Ltd.12. INVESTMENTSDuringtheyear, inordertogainmaximumadvantageinfuture, thecompanyhasmadeinvestments to the tune of Rs 6.80 crores in other infrastructure companies.13. DIRECTORS.During the year Directors Mr. ANPrakash Rao and Mr BRamesh Babu has beenappointedasadditionaldirectorsby thedirectors. Mr.HVEswaraiah,Dr.HBNShettyretire by rotation and being eligible offer themselves for re-appointment.16.1. SUBSIDIARY COMPANIES.1. C/ass/c Rea/ty Pr/rate L/m/tedC/ass/cRea/tyPr/rateL/m/ted(CRPL), 100% subsidiary of Sandur Power CompanyLimited, achieved a turnover of Rs 2658.81 Lakhs for the year ended March 31, 2008,and net profit of Rs 338.52 lakhs.The audited statement of accounts of CRPL for the period ended March 31, 2008,together with the report of Directors and the Auditors, as required under Section 212 ofthe Companies Act, 1956, are attached.1162. Carmel Asia Holdings Private LimitedCarme/ As/a Ha/d/ng Pr/rate L/m/ted (CAHPL), 78.84% he/d by yaar campany, is aninvestment holding company and its investment will yield strategically good results toyour company in long run.The audited statement of accounts of CAHPL for the period ended March 31, 2008,together with the report of Directors and the Auditors, as required under Section 212 ofthe Companies Act, 1956, are attached.3. Bhagavath Sannidhi Estates Private LimitedBhagarath Sann/dh/ Estate Pr/rate L/m/ted (BSEPL), where yaar campany has72.77% ha/d/ng, is an infrastructure company developing infrastructure projects whichwould fetch good returns in long run.The audited statement of accounts of BSEPL for the period ended March 31, 2008,together with the report of Directors and the Auditors, as required under Section 212 ofthe Companies Act, 1956, are attached.16.2 SUBSIDIARIES OF SUBSIDIARY COMPANIESDuring theyearunderreviewCLASSICREALTYPRIVATELIMITED,asubsidiary ofyourcompany, hasinvestedintheequitysharesofthefollowingcompaniesandmadethem its subsidiaries.The Details are:No Name of the Company Investment inpercentage1 Silicon Builders Private Limited 94.80%2 Marvel Infrastructure Private Limited 99.85%CARMELASIAHOLDINGS PRIVATELIMITED, another SubsidiaryCompany ofyour company, has investedintheequitysharesofthefollowingcompaniesandmadethemits subsidiaries.The Details are:No Name of the Company Investment inpercentage1 Janani Infrastructure Private Limited 67.91%2 Jagati Publications Private Limited 69.12%3 Indira Television Limited 51.22%Byvirtueof operationof the provisionof section4(1) (c), all thesefour companiesbecome subsidiary companies of your company as the subsidiary of subsidiary alsobecomes subsidiary of the holding company.116 117Asrequiredundersection212oftheCompaniesAct, 1956, theauditedaccountsoftheabovesubsidiariesalongwithauditorsreportthereonfortheyearended31stMarch2008are annexed.17. PARTICULARSOFENERGYCONSERVATION, TECHNOLOGYABSORPTIONANDFOREIGN EXCHANGE EARNINGS & OUTGOParticularswithrespect toconservationof energy, technologyabsorptionandforeignexchangeearnings&outgo, asperSection217(1)(e)oftheCompaniesAct, 1956, readwith the Companies (Disclosure of Particulars in the Report of Board of Directors)Rules, 1988andformingpart of theDirectors Report fortheyearended31st March,2008, are annexed to this report.18. PARTICULARS OF EMPLOYEES:AsrequiredundertheprovisionsofSection217(2A)oftheCompaniesAct, 1956, readwiththeCompanies(ParticularsofEmployees)Rules,1975asamended,thenamesandother particulars of employees are set out in the annexure included in this report.19. AUDITORSM/s. DeloitteHaskins&Sells., Chartered Accountants,Bangalore,AuditorsoftheCompany, retireat theconclusionof this Annual General Meetingandbeingeligibleoffer themselves for re-appointment. Your Directors recommendtheir re-appointmentfor members` approval. The Company has receivedaletter fromM/s. DeloitteHaskins&Sells totheeffect that their appointment as Auditors, if made,would be within the limits specifiedUnder Section 224(1-B) ofthe CompaniesAct, 1956.20. AUDITORS` COMMENTS ON THE NOTES TO ACCOUNTSThe Auditors' Report and Notes to Accounts are self-explanatory.21. PERSONNEL AND INDUSTRIAL RELATIONSThecompanyhas maintainedgoodindustrial relations duringtheyear. TheDirectorswishtoplaceonrecordtheirappreciationforthecontributionof theemployeesof theCompany at all levels.22. CORPORATE SOCIAL RESPONSIBILITY:As aresponsiblecorporatecitizen, your companyhas createdaspecificallydedicatedteamheadedby Mrs.YSBharathiReddy todischargeitssocialresponsibility andoverthe years the company has been contributing to the society making a conscientious efforttoreachoutandtouchthelivesoflesseradvantagedandlesserfavouredmembersofthesociety.11823. DIRECTORS` RESPONSIBILITY STATEMENT:Tothebestofknowledgeandbeliefandaccordingtotheinformationandexplanationsobtainedbythem, yourDirectorsmakethefollowingstatementinthetermsofsection217 (2AA) of the Companies Act, 1956.1. That in the preparation of the annual accounts, theapplicable accountingstandards have been followed along with proper explanation relating tomaterial departures.2. That Directors have selected such accounting policies and applied themconsistently and made judgments and estimates that arereasonable andprudent so as to give a true and fair view of the stateof affairs of theCompany as at 31stMarch 2008 and of the Profit and Loss Account ofthe Company for that period.3. That the Directors have taken proper and sufficient care for themaintenanceof adequateaccounting recordsin accordance with the provisionsofthe Act forsafeguarding theassetsof the Company and forpreventing anddetecting fraud and other irregularities.4. That the Directors have prepared the annual accounts ona goingconcern basis.24. ACKNOWLEDGEMENTYour Directors wish to place on record their gratitude to the Departments of GovernmentofKarnataka, KarnatakaPowerTransmissionCorporationLimited and MESCOMfortheir continued support and assistance during the year. Your Directors thank thevendors, investorsandBankersforthecontinuedsupportduringtheyear. Theywishtoplaceonrecordtheirsincereappreciationforthecooperationandassistanceprovidedbythe Central and State Government Authorities particularly Ministry of Company Affairs,GovernmentofIndia, NewDelhi, CustomandCentralExciseAuthorities, RegistrarofCompanies, Karnataka, the Income Tax Department, Andhra Bank, State Bank of Mysoreand other authorities.YourDirectorsalsowishtoplaceonrecordtheirappreciationofcontributionmadebyemployees of the company for their efforts, sincerity, solidarity, co-operation andsupport.The Board also sincerely acknowledges the faith and confidence reposed by theShareholders in the Company.PLACE: BANGALORE For and on behalf of the BoardDATE : 03/09/2008 Sd..Y S Jagan Mohan ReddyChairman and Managing Director118 119A: ANNEXURE TO THE DIRECTORS REPORTTHE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS)RULES, 1988(A) CONSERVATION OF ENERGYElectricityconsumptioninPowerHouseauxiliariesismainlyforrunninggovernoroil andcoolingwaterpumpsandforventilation,airconditioningandlightingpurposes.Effectiveenergyconservationmeasuresarebeingtakenin general and also ensuring that electricity consumption in these auxiliaries is kept at the minimum.Information in Form A, as prescribed for certain industries, is not applicable to the Company.(B) TECHNOLOGY ABSORPTIONThe Hydro-Electric Power Plant was commissioned in May, 2005. Every effort is being made to ensure that variousequipmentsof thePowerHousecorrespondtostateof theart technology. Forpropermaintenanceof theplant,innovativetechnologyisbeingadopted.NospecificexpenditureonResearchandDevelopmentisenvisagedforthesame.(C) FOREIGN EXCHANGE EARNINGS AND OUTGOParticulars of Foreign Exchange earnings and outgo are given in Schedule `17 B' - Notes to the Accounts - underNote No.13(3)B: ANNEXURE TO THE DIRECTORS' REPORT :Information as per Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars ofEmployees) Rules, 1975, as amended, and forming part of the Directors' Report for the year ended March 31, 2007.Sl.NoName of the Employee andAgeDesignation Qualification Date ofJoiningExperience GrossRemunerationIn Rs.PreviousEmployment.1 Mr. Y S Jagan MohanReddy35 yearsManagingDirectorMBA 16- 06-2001 12 years 25,648,541 PartneredMineral andpower projectsNote:1. Remanerat/an/nc/ades bas/c sa/ary,a//awances andtaxab/e ra/ae af perqa/s/tes as per Incame TaxRa/es.Ita/sa/nc/ades Rs 13,648,541 af Camm/ss/an.2. Part/ca/ars regard/ng the emp/ayees draw/ng sa/ary /n excess af that drawn by Manag/ng D/rectar ar Execat/rear Wha/e-T/me D/rectar and ha/d/ng, e/ther by h/mse/f ar a/ang w/th spaase and dependent ch//dren, nat /ess thantwa percent af the eqa/ty shares af the Campany are nat app//cab/e.PLACE: BANGALORE For and on behalf of the BoardDATE : 03/09/2008 Sd.Y S Jagan Mohan ReddyChairman and Managing Director120AUDITORS' REPORTTO THE MEMBERS OF SANDUR POWER COMPANY LIMITED1. We have audited the attached Balance Sheet of Sandur Power Company Limited as atMarch 31, 2008, the Profit and Loss Account and the Cash Flow Statement of the Companyfor the year ended on that date, annexed thereto. These financial statements are theresponsibility of the Management of the Company. Our responsibility is to express anopinion on these financial statements based on our audit.2. We conducted our audit in accordance with auditing standards generally accepted in India.These Standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An audit includes,examining on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significantestimates made by the Management as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for our opinion.3. As required by the Companies (Auditor`s Report) Order, 2003 issued by the CentralGovernment of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose inthe Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order;4. Further to our comments in the Annexure referred to above, we report that:(a) we have obtained all the information and explanations, which to the best of ourknowledge and belief were necessary for the purposes of our audit;(b) in our opinion, proper books of account as required by law have been kept by theCompany, so far as it appears from our examination of the books;(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt withby this report are in agreement with the books of account;(d) in our opinion, the Balance Sheet, Profit and Loss Account and the Cash Flow Statementdealt with by this report are in compliance with the Accounting Standards referred to inSection 211 (3C) of the Companies Act, 1956.(e) On the basis of the written representations from the directors of the Company ,as onMarch 31, 2008 and taken on record by the Board of Directors, we report that none ofthe directors is disqualified as on March 31, 2008 from being appointed as a directorunder Section 274 (1)(g) of the Companies Act, 1956;5. In our opinion and to the best of our information and according to the explanations given tous, the said accounts read together with notes thereon, give the information required, by theCompanies Act, 1956, in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India:(i) in the case of the Balance Sheet, of the state of affairs of the Company as atMarch 31, 2008;(ii) in the case of the Profit and Loss Account, of the profit for the year ended on thatdate; and(iii) in the case of Cash Flow Statement, of the cash flows for the year ended on thatdate.120 121ForDeloitteHaskins&SellsChartered AccountantsSd.S.GaneshPlace: Bangalore PartnerDate: September 3, 2008 M. No.: 204108AUDITORS' REPORTTO THE MEMBERS OF SANDUR POWER COMPANY LIMITED1. We have audited the attached Balance Sheet of Sandur Power Company Limited as atMarch 31, 2008, the Profit and Loss Account and the Cash Flow Statement of the Companyfor the year ended on that date, annexed thereto. These financial statements are theresponsibility of the Management of the Company. Our responsibility is to express anopinion on these financial statements based on our audit.2. We conducted our audit in accordance with auditing standards generally accepted in India.These Standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An audit includes,examining on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significantestimates made by the Management as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for our opinion.3. As required by the Companies (Auditor`s Report) Order, 2003 issued by the CentralGovernment of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose inthe Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order;4. Further to our comments in the Annexure referred to above, we report that:(a) we have obtained all the information and explanations, which to the best of ourknowledge and belief were necessary for the purposes of our audit;(b) in our opinion, proper books of account as required by law have been kept by theCompany, so far as it appears from our examination of the books;(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt withby this report are in agreement with the books of account;(d) in our opinion, the Balance Sheet, Profit and Loss Account and the Cash Flow Statementdealt with by this report are in compliance with the Accounting Standards referred to inSection 211 (3C) of the Companies Act, 1956.(e) On the basis of the written representations from the directors of the Company ,as onMarch 31, 2008 and taken on record by the Board of Directors, we report that none ofthe directors is disqualified as on March 31, 2008 from being appointed as a directorunder Section 274 (1)(g) of the Companies Act, 1956;5. In our opinion and to the best of our information and according to the explanations given tous, the said accounts read together with notes thereon, give the information required, by theCompanies Act, 1956, in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India:(i) in the case of the Balance Sheet, of the state of affairs of the Company as atMarch 31, 2008;(ii) in the case of the Profit and Loss Account, of the profit for the year ended on thatdate; and(iii) in the case of Cash Flow Statement, of the cash flows for the year ended on thatdate.122ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE1. The nature of the Company business/activities during the period is such that the Clauses iii(d), (f), (g), v (b), vi, ix (b), x, xii, xiii, xiv, xviii, xix and xx are not applicable.2. In respect of fixed assets:a) The Company has maintained proper records showing full particulars, includingquantitative details and situation of fixed assets.b) Some of the fixed assets were physically verified during the year by the management inaccordance with a programme of verification, which in our opinion provides for physicalverification of all the fixed assets at reasonable intervals. According to the informationand explanations given to us, no material discrepancies were noticed on such verification.c) Although some of the fixed assets have been sold during the year, in our opinion andaccording to the information and explanations given to us, the ability of the Company tocontinue as a going concern is not affected.3. In respect of inventories:(a) As explained to us, inventories were physically verified during the year by themanagement at reasonable intervals.(b) In our opinion and according to the information and explanations given to us, theprocedures of physical verification of inventories followed by the management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.(c) In our opinion and according to the information and explanations given to us, theCompany has maintained proper records of its inventories and no materialdiscrepancies were noticed on physical verification4. In respect of loans, secured or unsecured, granted or taken by the Company to or fromcompanies, firms or other parties covered in the register maintained under section 301 of theCompanies Act 1956, according to the information and explanations given to us:a) The Company has granted advances to one party. At the year-end, the outstandingbalances of such advances granted aggregated to Rs. 33,000,000 (one party) and themaximum amount involved during the year was Rs. 33,000,000.b) The rate of interest and other terms and conditions of such advances are, in our opinion,prima facie not prejudicial to the interest of the Company.c) The receipt and payment of principal amounts and interest have during the year beenregular/as per stipulations.d) According to information and explanations given to us, the Company has not taken anyloan, secured or unsecured, from companies, firms or other parties covered in the registermaintained under section 301 of the Companies Act, 19565. In our opinion and according to the information and explanations given to us, there areadequate internal control procedures commensurate with the size of the Company and thenature of its business for the purchase of fixed assets and for the sale of services and we havenot observed any continuing failure to correct the major weaknesses in such internal controls.122 1236. To the best of our knowledge and belief, and according to the information and explanationsgiven to us, there were no contracts or arrangements other than those referred to in paragraph3 above that needed to be entered in the Register maintained under Section 301 of theCompanies Act, 1956.7. In our opinion, the internal audit functions carried out during the year by an independent firmof chartered accountants appointed by the Management have been commensurate with thesize and the nature of its business.8. We have broadly reviewed the books of account and records maintained by the Companyrelating to the generation of power, pursuant to the order made by the Central Government forthe maintenance of cost records under Section 209(1)(d) of the Companies Act,1956 and areof the opinion that prima facie the prescribed books of account and records have been madeand maintained. We have, however, not made a detailed examination of the records with aview to determining whether they are accurate or complete.9. According to the information and explanations given to us, the Company was generallyregular in depositing undisputed statutory dues, including Investor Education and ProtectionFund, Provident Fund, Employees State Insurance, Income-tax, Sales-tax, Wealth Tax,Service Tax, Custom Duty, Excise Duty, cess and any other material statutory dues with theappropriate authorities during the year and there are no undisputed statutory dues outstandingfor a period of more than six months from the date they became payable as at the balancesheet date.10. In our opinion and according to the information and explanations given to us, the companyhas not defaulted in the repayment of dues to financial institutions and banks.11. In our opinion and according to the information and explanations given to us, the terms andconditions of the guarantees given by the Company for loans taken by others from banks andfinancial institutions, are not prima facie prejudicial to the interests of the Company.12. To the best of our knowledge and belief and according to the information and explanationsgiven to us, in our opinion, term loans availed by the Company were, prima facie, applied bythe Company during the year for the purposes for which the loans were obtained, other thantemporary deployment pending application.13. According to the information and explanations given to us, and on an overall examination ofthe balance sheet of the Company, funds raised on short term basis have prima facie not beenused during the year for long term investment.14. To the best of our knowledge and belief and according to the information and explanationsgiven to us, no fraud on or by the Company was noticed or reported during the year.ForDeloitteHaskins&SellsChartered AccountantsSd.S.GaneshPlace : Bangalore PartnerDate: September 3, 2008 M. No.: 204108124PARTICULARS SCHEDULE As at As at31.03.2008 31.03.2007Amt in Rs Amt in RsSOURCES OF FUNDS :1. SHAREHOLDERS' FUNDSShare Capital 1 743,649,870 535,149,870Reserves and Surplus 2 1,546,220,089 1,315,342,377Share Application Money 77,500,000 208,500,0002. LOAN FUNDSSecured Loans 3 146,498,459 46,958,411Unsecured Loans 4 90,623,042 -TOTAL 2,604,491,460 2,105,950,658APPLICATION OF FUNDS:1. FIXED ASSETS 5Gross Block 1,481,353,037 1,468,817,583Less : Depreciation 165,993,227 108,253,476Net Assets 1,315,359,810 1,360,564,107Capital Work-in-Progress 6 193,443,567 44,960,2361,508,803,377 1,405,524,3432. INVESTMENTS 7 944,228,723 876,178,7873. CURRENT ASSETS, LOANS &ADVANCESSundry Debtors 8 96,698,689 47,045,511Cash & Bank 9 25,820,460 14,308,341Loans and Advances 10 55,270,333 40,618,264177,789,482 101,972,116LESS: CURRENT LIABILITIES AND PROVOSIONSCurrent Liabilities 11 22,864,823 274,867,141Provisions 12 3,465,299 2,857,44726,330,122 277,724,588NET CURRENT ASSETS 151,459,360 (175,752,472)TOTAL 2,604,491,460 2,105,950,658SIGINIFICANT ACCOUNTING POLICIES 18 0 -NOTES ON ACCOUNTSNotes to accounts form an integral part of the Financial Statementsper our report attached of even dateFor DELOITTEHASKINS & SELLS For and on behalf of the Board of DirectorsChartered AccountantsSd.. Sd.. Sd.. Sd..R Siva Kumar Y S Jagan Mohan Reddy Harish C KamarthyS. Ganesh Company Secretary Managing Director DirectorPartnerMembership No. 204108Place : BangaloreDate : September 3, 2008SANDUR POWER COMPANY LIMITEDBALANCE SHEET AS ATMARCH 31, 2008124 125SANDUR POWER COMPANY LIMITEDSCHEDULETOTHEBALANCESHEET AS AT MARCH 31, 2008Schedule 1: SHARECAPITALPARTICULARS As at As at31.03.2008 31.03.2007(Amt In Rs.) (Amt In Rs.)AuthorisedCapital:55,000,000 ( PY - 55,000,000) Equity shares of Rs.10 each 550,000,000 550,000,000210,000,000 50,000,000Issued, Subscribed and Paidup53,514,987 Equity Shares of Rs. 10 /- 535,149,870 535,149,8702,08,50,000 0% Convertible Preference Shares of Rs. 10/- each, convertible 208,500,000 -within a period of 3 - 5 years.( Refer Note 2 to Schedule 18)Total 743,649,870 535,149,870Schedule 2: RESERVESANDSURPLUSPARTICULARS As at As at31.03.2008 31.03.2007a) Securities PremiumAccount - As per last Balance Sheet 1,070,507,727 1,070,507,727b) Capital Subsidy - -Add: Received during the year 34,375,000c) Surplus in Profit and Loss account 441,337,362 244,834,650Total 1,546,220,089 1,315,342,377Schedule 3: SECUREDLOANSPARTICULARS As at As at31.03.2008 31.03.2007a) TERM LOANS:Andhra Bank Foreign Currency Loan - 46,958,411Repayable within one year Rs. Nil ( PY Rs. Nil)Punjab National Bank 146,498,459 -Repayable within one year Rs. Rs. 30,000,000 ( PY Rs. Nil)Total 146,498,459 46,958,411Secured by first charge on the block of assets of the company (including deposit of title deeds of project land)Schedule 4: UNSECUREDLOANSPARTICULARS As at As at31.03.2008 31.03.2007From a Company 90,623,042 -Total 90,623,042 -21,000,000 (P.Y. 5,000,000) 0% Preference shares of 10/- each126SCHEDULE:5FIXEDASSETASONMARCH31,2008S.LDescriptionofAssetsAsonAdditionsDeletionsBalanceasUptoFortheDeletionsUptoBalanceBalanceNo.1.04.2007ason1.04.2007Year31-03-2008AsonAson31-03-20083/31/20083/31/20071LAND-A)LeaseholdLand3.34%9,574,368--9,574,368638,292319,784958,0768,616,2928,936,076B)FreeholdLand4,461,810--4,461,810---4,461,8104,461,8102FactoryBuilding,Roads,canels&otherdevelopments3.34%976,317,076--976,317,07660,840,33532,608,99093,449,325882,867,751915,476,7413PLANT&MACHINERY:a)ElectroMechanicalEquipments5.28%369,180,335393,750-369,574,08534,929,77819,510,43654,440,214315,133,871334,250,557b)HydroMechanicalEquipments5.28%85,316,268--85,316,2688,170,1664,504,69912,674,86572,641,40377,146,1024OFFICEASSETS4.75%4,778,643173,423-4,952,066737,670423,8271,161,4973,790,5694,040,9735VEHICLES9.50%13,189,08316,700,2794,731,99825,157,3642,537,2351,163,300991,2842,709,25122,448,11310,651,8486INTANGIBLEASSETSLicenceRights3.34%6,000,000--6,000,000400,000200,000600,0005,400,0005,600,000(ReferNote2toSchedule17B)TOTAL1,468,817,58317,267,4524,731,9981,481,353,037108,253,47658,731,035991,284165,993,2271,315,359,8101,360,564,107Previousyear1,458,820,2499,997,334-1,468,817,58349,673,41958,580,057108,253,4761,360,564,107GROSSBLOCKDEPRECIATIONBLOCKNetBlockSANDURPOWERCOMPANYLIMITED126 127SANDUR POWER COMPANY LIMITEDSCHEDULETOTHEBALANCE SHEETASAT 31ST MARCH 2008Schedule 6: CAPITAL WORK-IN-PROGRESSPARTICULARS As on As on31-3-2008 31.03.2007(Amt in Rs.) (Amt in Rs.)PROJECT EXPENSES :PPAProcessing Fee 562,500 562,500Capital work in progress 209,066 -Interest during construction 2,489,646 -Capital Equipments Received during the year 72,012,724 -Advance - Grant of Land 88,919 47,736Advance paid 118,080,712 44,350,000193,443,567 44,960,236Schedule 7: INVESTMENTSPARTICULARS As on As on31.03.2008 31.03.2007INVESTMENTS AT COST, UNQUOTEDLONG TERM INVESTMENTSINSUBSIDIARYCOMPANIES, TradeA) Classic Realty Pvt Ltd. 644,720,787 644,720,787B) Silicon Infrastructure Pvt. Ltd.(Fully paid Equity Shares of Rs. 10/- at par)C) Carmel Asia Holdings Pvt. Ltd. 120,000,000 120,000,00012,000,000 ( PY- 12,000,000) Fully paid Equity Shares of Rs. 10/- at parC) Bhagavath Saniddi Estates Pvt. Ltd. 24,100,000 11,900,0002,410,000 (PY- 1,190,00) Fully paid Equity Shares of Rs. 10/- at parD) Harish Infrastructure Pvt Ltd 49,750,000 -4,975,000 ( PY - Nil) Fully paid Equity Shares of Rs. 10/- at parIN ASSOCIATE COMPANIES, TRADEC) Silicon Infrastructure Pvt. Ltd.7,470,000 (PY- 7,470,000) Fully paid Equity Shares of Rs. 10/- at par 74,700,000 74,700,000OTHER , NON - TradeA) Janani Infrastructure Pvt. Ltd. 24,707,936 20,208,000B) Silicon Builders Pvt. Ltd. 1,600,000 100,000160,000 ( PY - 10,000)Fully paid Equity Shares of Rs. 10/- at parC) Raghuram Cements Ltd. 1,850,000 1,850,000185 000 ( PY- 185,000) Fully paid Equity Shares of Rs. 10/- at parD) Capstone Infrastructure Pvt Ltd 100,000 -10,000 (PY- Nil) Fully paid Equity Shares of Rs. 10/- at parE) Shalom Infrastructure Pvt. Ltd. 2,700,000 2,700,000Total 944,228,723 876,178,787Additions during the yearName of the Company # of shares AmountSilicon Builders Pvt Ltd 150,000 1,500,000Capstone Infrastructure Pvt Ltd 10,000 100,000Janani Infrastructure Pvt Ltd 40,178 4,499,936 2,020,800 20,208,000Bhagavath Sanniddi Estates Pvt Ltd 1,220,000 12,200,000 190,000 1,900,000Harish Infrastructure Pvt Ltd 4,975,000 49,750,000Classic Realty Pvt Ltd 95,000 644,720,787Carmel Asia Holdings Pvt Ltd 7,000,000 70,000,000Shalom Infrastructure Pvt Ltd 270,000 2,700,000Deletions during the yearKrishna Power Technologies Pvt Ltd 37,400 1,870,000Year ended March 31, 2008 Year ended March 31, 200795,000 ( PY- 95,000) Fully paid Equity Shares of Rs. 100/- at premium of Rs.6,687/-20,20,800 paid Equity Shares of Rs. 10/- at par & 40,178 Equity Share fully paid up of Rs.10/- at a premium of Rs. 102270,000 ( PY-270,000) Fully paid Equity Shares of Rs.10/- at par128SANDUR POWER COMPANY LIMITEDSCHEDULETOTHEBALANCE SHEETASAT 31ST MARCH 2008Schedule 8: SUNDRY DEBTORSPARTICULARS As on As on31.03.2008 31.03.2007Sundry DebtorsUnsecured, considered goodExceeding six months - -Others 96,698,689 47,045,511Total 96,698,689 47,045,511Schedule 9: CASH&BANKPARTICULARS As on As at31.03.2008 31.03.2007Cash in hand 10,262 37,444Balance With Schedule BanksIn Current Accounts 1,951,758 6,693,724In Deposit Accounts 23,858,440 7,577,173Total 25,820,460 14,308,341Schedule 10: LOANS AND ADVANCESPARTICULARS As on As on31.03.2008 31.03.2007Unsecured, Considered good :Interest Accrued 2,396,696 2,551,819Advances recoverable in cash or in kind 2,352,854 2,626,793Deposits 1,840,472 2,147,667CustomDuty Refund receivable 291,985 291,98515,388,326 -Secured, Considered good :Advance to a Company 33,000,000 33,000,000(Fully secured by way of personal guarantee of theManaging Director)Maximumamount outstanding during the year is 33,000,000(PY - Rs. 37,000,000)Total 55,270,333 40,618,264Due fromSubsidiary (Maximumamount oustanding during the yearRs. /- (P.Y. Rs. /-)128 129SANDUR POWER COMPANY LIMITEDSchedule 11: SUNDRYCREDITORSPARTICULARS As on As on31.03.2008 31.03.2007Amt in Rs Amt in RsSundry Creditors:Dues to Micro enterprisies and Small enterprises -Dues to otherthanMicro enterprises and Small enterprises 4,565,573 7,638,997Due to Managing Director 15,186,317 -Book overdraft incurrent account withscheduled banks 2,908,920 -Otherliabilities 204,013 501,470Due to subsidiary company - 266,726,674Total 22,864,823 274,867,141Schedule 12: PROVISIONSPARTICULARS As on As on31.03.2008 31.03.2007Amt in Rs Amt in RsProvisions for :Employee benefits 600,000 600,000Fringe Benefit Tax ( Net of advance taxes paid) 409,699 200,574Income Tax ( Net of advances taxes paid) 2,205,600 2,056,873WealthTax 250,000 -Total 3,465,299 2,857,447SCHEDULE TO THE BALANCE SHEETAS AT MARCH 31, 20081301A. Significant Accounting Policies and Notes on Accounts for the year ended March 31, 20081. GENERALThe financial statements have been prepared under the historical cost convention, inaccordancewiththeGenerallyAcceptedAccountingPrinciples(GAAP)inIndiaandtheprovisionsof theCompaniesAct, 1956, asadoptedconsistentlybytheCompany. TheCompany follows mercantile system of accounting and recognizes income andexpenditure on accrual basis.2. USE OF ESTIMATESThe preparation of the financial statements in conformity with Indian GAAP requires thatthe management makes estimates and assumptions to affect the reported amounts of assetsandliabilities,disclosureofcontingentliabilitiesasat thedateofthefinancialstatementsandreportedamountsofrevenueandexpensesduringthereportedperiod. Actual resultcould differ from those estimates.3. REVENUE RECOGNITION(i) RevenuefromsaleofPowerisrecognisedonthebasisofpowergeneratedanddelivered to Mangalore Electricity Supply Company Limited (MESCOM) atdelivery point in accordance with the provisions of the power purchaseagreement dated 3rdFebruary 2004.(ii) Incomefrom insuranceclaimsisaccounted for to the extent thesameisreceivedor acknowledged by the Insurance Company.(iii) Interest income is recognized based on the implied interest rates for eachtransaction4. FIXED ASSETSFixedAssetsarestatedat thecost of acquisition, lessaccumulateddepreciation. Costsincurred on the fixed assets till the date the assets are ready to use are capitalized.Cost of Leasehold land is amortized over the primary period of lease.LicensingRightsfor theacquisitionof Varahi Tail RaceHydel Project andLeaseholdLand is amortised over the primary period of lease.6&+('8/( 130 13125. DEPRECIATIONDepreciationonfixedassetsisprovidedonthestraight linemethod, basedat theratesspecifiedinScheduleXIV,andischargedonpro-ratabasisfromthedateofacquisitionof assets.AssetscostinglessthanRs5,000/-individuallyaredepreciatedinfullintheyearofitspurchase.6. INVENTORIESInventory in the nature of stores is issued to consumption as and when they arepurchased.7. INVESTMENTSLongtermInvestmentsarestatedat cost lessanydiminutioninvalueotherthanthosetemporary in nature.Current Investments are stated at lower of cost and market/fair value.8. EMPLOYEE BENEFITSa) Short termemployeebenefitsincludingsalaries, social securitycontributions, shorttermcompensated absences(such as paid annual leave) where the absences areexpectedtooccur withintwelvemonths after theendof theperiodinwhichtheemployeesrendertherelatedemployeeservice,bonuspayablewithintwelvemonthsafter the end of the period in which the employees render the related services and nonmonetarybenefits(suchas medical care) for current employees are estimatedandmeasured on an undiscounted basis.b) Defined Contribution Plan:Company`s contributions paid /payable during the year to Provident Fund arerecognized in the profit and loss account.c) Defined Benefit Plan:Liabilitytowardsgratuityisprovidedonactual basisasat theyearendandisnotfunded.9. FOREIGN CURRENCY TRANSACTIONSTransactionsinforeigncurrencyarerecognizedat theexchangeratesprevailingonthedateof thetransactions. Exchangedifferences arisingonforeigncurrencytransactionssettledduringtheyear arerecognizedintheprofit &loss account. Monetaryforeigncurrencyassetsandliabilitiesarerestatedattheexchangeratesprevailingatthe yearendandall exchange gains / losses arisingtherefromare recognizedinthe profit &lossaccount.132310. BORROWING COSTSBorrowingcosts other thanthat attributabletoaqualifyingasset areexpensedas andwhen incurred.11. INCOME TAXTaxesonincomeforthecurrentyeararedeterminedonthebasisoftheIncomeTaxAct1961.Deferredtaxisrecognizedontimingdifferencesbetweentheaccountingincomeandthetaxable income for the year and quantified using the tax rates and laws enacted orsubstantivelyenactedasontheBalanceSheet date. Deferredtaxassetsarerecognizedandcarriedforwardtotheextentthatthereisareasonablecertaintythatsufficientfuturetaxable income will be available against which such deferred tax asset can be realizedFringe Benefit tax is calculated based on the provisions of Income Tax Act, 1961.12. IMPAIRMENT OF ASSETSThecarryingamountsofassetsarereviewedateachBalanceSheetdate, ifthereisanyindication of impairment based on internal / external factors. An asset is treated asimpairedwhenthecarryingcostofassetsexceedsitsrecoverablevalue. AnimpairmentlossischargedtoProfitandLossAccountintheyearinwhichanassetisidentifiedasimpaired.Therecoverableamountisgreateroftheasset`snetsellingpriceandvalueinuse. Inassessingvalue inuse, the estimatedfuture cashflows are discountedtothepresent value. Apreviouslyrecognizedimpairment lossisfurtherprovidedorreverseddepending on changes in circumstances.13. PROVISIONS & CONTINGENT LIABILITIESAprovisionisrecognisedwhenanenterprisehasapresentobligationasaresultofpastevent;itisprobablethatanoutflowofresourceswillberequiredtosettletheobligation,inrespectofwhichareliableestimatecanbemade. Provisionsarenotdiscountedtoitspresent value and are determined based on best estimate required to settle the obligation atthebalancesheet date. Thesearereviewedat eachbalancesheet dateandadjustedtoreflect the current best estimates.14. CAPITAL GRANTSCapital grants other than relating to specific fixed assets are credited to capitalreserves.132 1334B.NOTES ON ACCOUNTS1. COMMITMENTS & CONTINGENT LIABILITIES31-03-2008 31-03-2007Estimated amount of contracts remaining to bexecuted on capital account and not provided for45,235,533 185,850,000Guarantees given by the Company 1,170,000,000 1,170,000,0002. CONVERTIBLE PREFERENCE SHARESTheCompanyhasissued20,850,000ZeropercentConvertiblePreferenceSharesofthefacevalueofRs. 10/-eachat partooneofitsassociates. Thesepreferencesharesareconverible within a period at 7-9 years of its issue.3. SEGMENTAL REPORTINGPrimarySegment: TheCompany`sbusinesscomprisesof generationandsaleof powerwhichconstitutesasinglesegmentandisrestrictedtoonegeographicalarea. Hence, thedisclosure of segment information as per Accounting Standard 17 is not applicable.4. RELATED PARTY DISCLOSURES(a) Name of Related PartySl.No. Nature of relationship Name of Party1 Subsidiary Companies Carmel Asia Holdings (P)LtdBhagavath Sannidhi Estates (P) LtdClassic Realty (P) LtdHarish Infrastructure (P) LtdCapstone Infrastructure (P) LtdMarvel Infrastructure (P) LtdShalom Infrastructure (P) LtdSilicon Builders (P) Ltd2 Associate Company Janani Infrastructure (P) LtdSilicon Infrastructure (P) Ltd3 Key Management PersonnelManaging DirectorDirectorDirectorY S Jagan Mohan ReddyJ J ReddyHarish C Kamarthy4Enterprises over which keymanagement personnel exercisessignificant influenceSaraswathi Power & Industries (P) LtdRaghuram Cements Ltd1345(b)RelatedPartyTransactionsSl.No.NatureoftransactionsSubsidiaryAssociatesKeyManagementPersonnelEnterprisesoverwhichkeymanagementpersonnelexertsignificantinfluenceTotal1InvestmentBhagavathSannidiEstates(P)Ltd12,200,000(11,900,000)---12,200,000(11,900,000)CarmelAsiaHoldings(P)Ltd.-(120,000,000)----(120,000,000)ClassicRealty(P)Ltd.-(644,720,787)----(644,720,787)HarishInfrastructure(P)Ltd49,750,000(-)---49,750,000(-)CapstoneInfrastructure(P)Ltd.100,000(-)---100,000(-)JananiInfrastructure(P)Ltd-4,499,996(20,208,000)--4,499,996(20,208,000)RaghuramCementsLtd----(1,850,000)-(1,850,000)ShalomInfrastructure(P)Ltd-(2,700,000)----(2,700,000)SiliconBuilders(P)Ltd1,500,000(-)---1,500,000(-)SiliconInfrastructure(P)Ltd--(74,700,000)---(74,700,000)134 1356Sl.No.NatureoftransactionsSubsidiaryAssociatesKeyManagementPersonnelEnterprisesoverwhichkeymanagementpersonnelexertsignificantinfluenceTotal2Loan\advancegivenCapstoneInfrastructure(P)Ltd43,900,000(-)---43,900,000(-)MarvelInfrastructure(P)Ltd50,500,000(217,300,000)---50,500,000(217,300,000)RaghuramCementsLtd---15,000,000(29,900,000)15,000,000(29,900,000)ShalomInfrastructure(P)Ltd14,850,000(5,000,000)---14,850,000(5,000,000)SiliconBuilders(P)Ltd72,700,000(158,975,000)---72,700,000(158,975,000)SaraswatiPower&Industries(P)Ltd----(37,000,000)-(37,000,000)ClassicRealty(P)Ltd15,388,326(-)---15,388,326(-)3RemunerationY.S.JaganMohanReddy--27,186,317(12,000,000)-27,186,317(12,000,000)HarishCKamarthy--749,400(366,300)-749,400(366,300)JJReddy--788,376(732,600)-788,376(732,600)1367Sl.No.NatureoftransactionsSubsidiaryAssociatesKeyManagementPersonnelEnterprisesoverwhichkeymanagementpersonnelexertsignificantinfluenceTotal4Loan/advancesrecoveredCapstoneInfrastructure(P)Ltd43,900,000(-)---43,900,000(-)MarvelInfrastructure(P)Ltd50,500,000(217,300,000)---50,500,000(217,300,000)RaghuramCementsLtd---15,000,000(29,900,000)15,000,000(29,900,000)ShalomInfrastructure(P)Ltd14,850,000(5,000,000)---14,850,000(5,000,000)SiliconBuilders(P)Ltd72,700,000(158,975,000)---72,700,000(158,975,000)SaraswatiPower&Industries(P)Ltd----(4,000,000)-(4,000,000)5InterestonAdvanceSaraswatiPower&Industries(P)Ltd---3,135,000(3,290,123)3,135,000(3,290,123)6TradeAdvancetakenCarmelAsiaHoldings(P)Ltd.-(61,150,000)----(61,150,000)ClassicRealty(P)Ltd.7,500,000(588,200,000)---7,500,000(588,200,000)136 1378Sl.No.NatureoftransactionsSubsidiaryAssociatesKeyManagementPersonnelEnterprisesoverwhichkeymanagementpersonnelexertsignificantinfluenceTotal7TradeAdvancerepaidCarmelAsiaHoldings(P)Ltd.26,150,000(35,000,000)---26,150,000(35,000,000)ClassicRealty(P)Ltd248,076,674(347,623,326)---248,076,674(347,623,326)8ShareApplicationMoneyreceivedSiliconInfrastructure(P)Ltd--(208,500,000)---(208,500,000)9IssueofpreferencesharesSiliconInfrastructure(P)Ltd208,500,000(-)208,500,000(-)1389OutstandingasonMarch31,2008Sl.No.NatureoftransactionsSubsidiaryCompanyAssociatesKeyManagementPersonnelEnterprisesoverwhichkeymanagementpersonnelexercisessignificantinfluenceTotal1Loan/AdvancegivenClassicRealty(P)Ltd15,388,326(-)---15,388,326(-)SaraswatiPower&Industries(P)Ltd---33,000,000(33,000,000)33,000,000(33,000,000)2Loan/advancestakenCarmelAsiaHoldings(P)Ltd-(26,150,000)----(26,150,000)ClassicRealty(P)Ltd-(240,576,674)----(240,576,674)3ShareApplicationMoneySiliconInfrastructure(P)Ltd--(208,500,000)---(208,500,000)4InterestReceivableSaraswatiPower&Industries(P)Ltd---2,396,696(2,551,819)2,396,696(2,551,819)5RemunerationpayableY.S.JaganMohanReddy15,186,31715,186,317138 13910Note:1.Relatedpartyrelationshiphavebeenidentifiedbythemanagement andrelieduponbythe auditors.2.Previous year figures have been shown in brackets.3.Noamountsinrespectoftherelatedpartieshavebeenwrittenoff/backorprovidedforduring the year.5. EARNINGS FROM EQUITY SHARES:(Amount in Rs.)Particulars 31-03-2008 31-03-2007Nominal value of Equity Shares (Rs.) Rs. 10/- Rs. 10/-Profit after Taxation 196,502,712 178,074,511Weighted average number of equity sharesoutstanding53,514,987 53,514,987Earnings per Equity Share - Basic & Diluted 3.67 3.33 The conversion rate for 0% ConvertiblePreference shares beingcontingentas pertermsof theShareSubscription, thedilutedearningspersharehasnot beencomputedand disclosed.6. INCOME TAXES:a) During the year, the Company does not have taxable income as per regularcomputation;henceprovisionforIncomeTaxismadeasperMinimumAlternateTaxunder section 115 JB of the Income Tax Act, 1961.b) Thetimingdifferences relatingmainlytodepreciationandgratuityas at March31,2008resultedinadeferredtaxasset asperAccountingStandard22AccountingforTaxes on Income. As a prudent measure, the deferred tax assets has not beenrecognised in the accounts7. MANAGERIAL REMUNERATION:8. TherearenoMicro, Small andMediumEnterprises, towhomthecompanyowes dues,which are outstanding for more than 45 days at the Balance Sheet date. The aboveinformationthat isgiveninSchedule11-Current Liabilitiesregardingmicro, small andmediumenterpriseshasbeendeterminedtotheextentsuchpartieshavebeenidentifiedonParticulars 31-03-2008 31-03-2007Salaries 13,537,776 13,098,900Perquisites Nil NilCommission 15,186,317 NilTOTAL 28,724,093 13,098,90014011thebasis of informationavailablewiththecompany. This has beenrelieduponbytheauditors.9. ComputationofNetprofitinaccordancewithSection349and198ofTheCompaniesAct1956Particulars 31-03-2008Rs.31-03-2007Rs.Profit Before Taxation 224,002,712 203,374,511Add: Depreciation as per Books 58,731,035 58,580,057Managerial Remuneration 28,724,093 13,098,900(Profit)/Loss on Sale of Assets 89,125 (11,148,987)Sitting Fees paid to Directors 50,000 -Capital subsidy received from CentralGovernment34,375,000 -Total 118,531,753 60,529,970Less: Depreciation as per Books 58,731,035 58,580,057Total 58,731,035 58,580,057Net Profit for calculation of Commission 287,240,930 205,324,424@ 10 % of Net Profit 28,724,093 *20,532,442* - In the previous year, the remuneration paid to directors was restricted to Rs.13,098,90010. EMPLOYEE BENEFITS1. Employee BenefitsThe Company has during the year ended March 31, 2008 adopted Accounting Standard15 on Employee Benefits (Revised) issued by the Institute of Chartered Accountants ofIndia, the details of which are given below:I Defined Contribution Plansi. Employers` Contribution to Provident Fundii. Employers` Contribution to Employee`s Pension Scheme 1995.During the year, the Company has recognized the following amounts in the Profitand Loss Account-Particulars RsEmployers` Contribution to Provident Fund and Pension Scheme * 413,384* Included in Contribution to provident and other fundsThedirectorsoftheCompanyarenoteligibleforgratuity.Theliabilitytowardsgratuityforeligibleemployeesisprovidedonactualbasisonthenumberofyearsof serviceasat140 14112theyearendandisnotfunded. Theamountprovidedisgreaterthanthatdeterminedonactuarial basisandsuchprovisiondoesnot haveamaterial impact ontheprofitfortheyear.11. REMUNERATION TO AUDITORS12. CAPITAL GRANTS:TheCompanyhasbeengrantedasumofRs.34,375,000/-duringtheyear2007-08underthe scheme for setting up of commercial SHP projects up to 25 MW of the Ministry of Newand Renewable Energy. The grant is released for the purpose of prepayment of loan availedby the Company which has been recognized as capital reserve in the accounts.13. Additional informationpursuanttotheprovisionsofparagraph3&4ofPartIIofSchedule VI to the Companies Act, 1956, to the extent applicable:1. CAPACITY AND PRODUCTIONParticulars 31-03-08 31-03-07Licenced Capacity* 22.50 MW 22.50 MWInstalled Capacity* 22.50 MW 22.50 MWActual Production 1,188.15 Lakh Units 1,026.51 Lakh Units* As certified by the management and not verified by the auditors being technical matter2. VALUE OF EARNINGS IN FOB BASIS