7 Jul 2010 07:00
Great Eastern Energy Corporation Ltd
("Great Eastern" or "the Company")
Full Year Results
Year ended 31 March 2010
Great Eastern Energy Corporation Ltd. ("GEECL"), a company involved in the exploration, development and production of coal bed methane ("CBM") natural gas in India, is pleased to announce its Preliminary Results for the 12 months ended 31 March 2010.
Highlights
Sales, Marketing & Distribution:
Ø Gas distribution pipeline completed connecting to major industrial markets in Asansol, Kulti and Durgapur
Ø Continued current focus on building spur lines connecting customers to main distribution network
Ø Total gas under sales agreements increased 330% to 24.62 MMscfd
Ø Secured a number of major and medium size customers, including SAIL ISP, part of the Steel Authority of India Limited
Ø In advanced discussions with additional companies for further sales agreements
Drilling, Fracturing and Well Completion:
Ø Total of 73 wells drilled (2009: 48 wells):
o 42 wells completed
o 31 wells at various stages of completion
o 36 wells dewatering and producing gas
Ø Additional workover rig commissioned
Ø Further drilling rig ordered
Ø Halliburton has completed 172 fractures in 12 wells since start in November 2009
Production:
Ø Average production of 3.72 MMscfd inline with Company expectations
Ø Newly fractured wells dewatering and producing gas
Infrastructure:
Ø 60.10km of internal pipeline laid connecting wells to the gas gathering station on the Raniganj license:
o 29 producing wells connected
o Total of 42 wells connected
New Acreage:
Ø Awarded additional Mannargudi Block - providing additional growth opportunities
Ø Block located in Tamil Nadu, covering 691km²
Ø Resource estimated at 0.98tcf of gas as per DGH
Financials:
Ø Strong funding position, with cash of US$22.01m at 31 March 2010
Ø Successfully raised £28.8m through a placing in November 2009
Ø Moved from AIM to the main market of the London Stock Exchange
Prashant Modi, President and COO of Great Eastern, commented:
"The focus over the last year has been to develop sales and distribution to end users. We have now successfully achieved both of these aims, with a significant uplift in the quantity of gas under sales agreements and the completion of the pipeline distribution network to the major industrial markets of Asansol, Kulti and Durgapur. The growth in sales agreements is reflected in the significant increase in revenue from gas sales and the Company moving into profit on an EBITDA basis for the first time in the current financial year. A further reflection of the growth in the business is the move post the year end to the main market of the London Stock Exchange. Looking ahead, we are in advanced discussions to put additional sales agreements in place, are well positioned to further increase production to meet contracted demand and, with the award of the Mannargudi Block, have a firm longer term growth opportunity in place."
For further information:
Great Eastern Energy
YK Modi Chairman & CEO + 44 (0) 20 7861 3232
Prashant Modi President & COO
Arden Partners
Richard Day +44 (0)20 7614 5917
Adrian Trimmings
RBC Capital Markets
Martin Eales +44 (0)20 7653 4000
Brett Jacobs
Pelham Bell Pottinger Public Relations
Philip Dennis +44 (0)20 7861 3919
Elena Dobson +44 (0) 207861 3147
Chairman's Statement
Financials
During the period, turnover increased 290% to Rs. 157.65 million. This substantial improvement in the financial performance of the business is due to gas sales during the period. For the year ended 31 March 2010, the Company produced 38,402 mcm of CBM, and sold 5,555 mcm of CBM.
At the year end, GEECL remained in a strong financial position with cash of US$22.01 million. In November last year, the Company successfully raised £28.8m through a placing and repaid debt to one of its lenders, saving US$1.7 million per annum in finance charges.
Post the year end, the Company successfully moved from the AIM market to the standard list of the London Stock Exchange. This move is a reflection of the size of the business and was based on the main market being the appropriate platform for the continued growth of the Company. A listing on the main market also affords the Company greater exposure to potential investors and enhances its profile.
Sales, Marketing & Distribution
As highlighted in previous announcement, the focus for GEECL over the last twelve months has been to grow sales by increasing the amount of gas under sales agreement and by putting in place the distribution infrastructure needed to service that demand. Both of these aims have been achieved, with the very significant increase in the amount of gas under agreement and notwithstanding there has been approximately a nine month delay in the completion of the distribution pipeline network.
The total quantity of gas currently under agreement is 24.62 MMscfd, which represents a 330% increase over the quantity under agreement at this time last year. We have secured a number of large and medium size customers, including SAIL ISP, which is part of the Steel Authority of India Limited.
A number of customers are now ready to take gas after completing internal piping connections and converting furnace equipment to burn gas.
We are also at an advanced stage of discussions with a number of other companies involved in steel related industries and, as such, hope to be able to secure additional sales agreements in the relatively near future.
The external distribution pipeline network covers a total of 77.62km and provides access to the major industrial markets of Asansol, Kulti and Durgapur. The major portion of the pipeline runs along the Asansol to Durgapur highway, which enhances GEECL's marketing efforts. With the main distribution network complete, the Company's current focus remains on installing spur-lines to key customers. The delay in completing the distribution pipeline has in turn led to a delay in our production programme, although this is now proceeding satisfactorily.
Demand for the Company's gas in its regional target market remains strong and gas prices being realised under commercial arrangements continue to be in line with previous expectations.
Infrastructure:
In addition to the external pipeline network, GEECL has successfully laid 60.10km of the MDPE pipeline on the Raniganj license area, connecting 42 of the wells drilled to the gas gathering station on that site. The gas gathering station is the central point for the collection of gas from the wells.
Drilling, Production & Reserves:
Between June 2009 and June 2010, GEECL successfully drilled an additional 25 wells bring the total number of wells drilled to 73. Of the wells drilled, 42 have been completed and a further 31 are at various stages of completion. Drilling and completion efficiency has successfully increased in the last twelve months. This has been made possible through operating GEECL's own drilling rig and two workover rigs. An additional workover rig was commissioned in June 2010 and a further drilling rig has been placed on order.
Drilling operations continue with the focus switching increasingly to the south of the block to access production from this zone. Wells from this area will be connected to the existing gas gathering station, which will help drive the conversion of gas resources into reserves.
During the year the Company contracted Halliburton to undertake an extensive fracturing programme. The programme started in November last year and is successfully underway.
The Company commissioned Netherland, Sewell & Associates to provide an updated competent persons report, which was published in March. The report reaffirmed the gas in place and prospective resource, with an increase in the original gas in place number to 2 Tcf.
New Acreage
On 24 June 2010, the Ministry of Petroleum and Natural Gas announced the award of one CBM Block, Mannargudi Block, to the Company. The Block is located in the state of Tamil Nadu and spreads over an area of 691sq km. The CBM resource of the Block is estimated at 0.98 Tcf as per DGH.
Outlook
We have made solid progress in the last year; achieving key goals in sales and distribution. Now that the distribution pipeline has been completed, we will continue to focus on increasing production and on securing additional sales agreements as well as developing sales of CBM gas. With the current fracturing and drilling programme in place we can now look forward to growing sales revenue through increased production levels in the year ahead. I would like to thank our management team and all personnel for their devoted contribution to our overall success.
Readers should be aware that the following accounts are audited under Indian GAAP and will differ from the IFRS audited accounts due to be released by the Company on 19 July 2010.
GREAT EASTERN ENERGY CORPORATION LIMITED
BALANCE SHEET AS AT 31 MARCH 2010
|
| Schedule | As at | As at | |
| SOURCES OF FUNDS |
| 31.03.2010 |
| 31.03.2009 |
|
|
| Rs. |
| Rs. |
| Shareholders' Fund |
|
|
|
|
| Share Capital | 1 | 580,619,500 |
| 544,619,499 |
| Stock Option Outstanding Account | 2 | 1,601,629 |
| 695,054 |
| Reserves and Surplus | 3 | 3,585,074,596 |
| 1,486,594,797 |
|
|
|
|
|
|
| Loan Funds |
|
|
|
|
| Secured Loans | 4 | 2,538,941,263 |
| 2,172,778,144 |
|
|
| 6,706,236,988 |
| 4,204,687,494 |
|
|
|
|
|
|
| APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
| Fixed Assets | 5 |
|
|
|
| Gross Block |
| 3,390,069,501 |
| 1,833,121,254 |
| Less: Accumulated depreciation |
| 134,583,915 |
| 114,590,459 |
| Net Block |
| 3,255,485,586 |
| 1,718,530,795 |
|
|
|
|
|
|
| Capital work in progress | 6 | 1,850,564,673 |
| 2,132,733,549 |
|
|
|
|
|
|
| Investments | 7 | 982,701,448 |
| - |
|
|
|
|
|
|
| Current Assets, Loans and Advances |
|
|
|
|
| Sundry Debtors | 8 | 30,212,801 |
| 2,282,742 |
| Cash and Bank Balances | 9 | 11,090,832 |
| 54,360,776 |
| Other Current Assets | 10 | 2,806,445 |
| 3,997,819 |
| Loans and Advances | 11 | 26,329,116 |
| 122,856,033 |
|
|
| 70,439,194 |
| 183,497,370 |
| Less: Current Liabilities and Provisions | 12 |
|
|
|
| Current Liabilities |
| 291,784,678 |
| 350,540,772 |
| Provisions |
| 27,583,346 |
| 14,556,290 |
|
|
| 319,368,024 |
| 365,097,062 |
|
|
|
|
|
|
| Net Current Assets |
| (248,928,830) |
| (181,599,692) |
|
|
|
|
|
|
| Profit and Loss Account |
| 866,414,111 |
| 535,022,842 |
|
|
|
|
|
|
|
|
| 6,706,236,988 |
| 4,204,687,494 |
Significant Accounting Policies 17
Notes to Accounts 18
| This is the Balance Sheet referred to in our report of even date | Schedules referred to above form an integral part of the Balance Sheet |
|
| For Price Waterhouse Firm Registration No. 012754N Chartered Accountants | For and on behalf of Board of Directors
|
|
|
| Yogendra Kr. Modi Chairman & Chief Executive Officer | K.N. Memani Director |
| V. Nijhawan Partner Membership Number F-87228 |
Prashant Modi
|
|
|
| President & Chief Operating Officer |
|
|
Place: Gurgaon Date: July 5, 2010 | S. Suriyanarayanan Chief Financial Officer | Parveen Arora Company Secretary |
GREAT EASTERN ENERGY CORPORATION LIMITED
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2010
|
|
|
| Year ended | Year Ended | ||||
|
| Schedule |
|
| 31.03.2010 |
| 31.03.2009 | ||
| INCOME |
| Rs. | Rs. |
| Rs.
| |||
|
|
|
|
|
|
| |||
| Gross Sales |
| 118,435,113 |
|
| 32,396,810 | |||
| (Refer Note 2(a) on Schedule 17 and |
|
|
|
|
| |||
| Note 27 on Schedule 18) |
| 1,096,677 |
|
| 207,219 | |||
| Less: Excise Duty |
|
| 117,338,436 |
| 32,189,591 | |||
| Net Sales |
|
|
|
|
| |||
|
|
|
|
|
|
|
| ||
| Other Income | 13 |
|
| 40,316,430 |
| 7,940,018 | ||
|
|
|
|
|
|
| |||
|
|
|
| 157,654,866 |
| 40,129,609 | |||
| EXPENDITURE |
|
|
|
|
| |||
| Manufacturing & other expenses | 14 |
|
| 161,925,140 |
| 164,433,586 | ||
|
|
|
|
|
|
|
| ||
| Personnel expenses | 15 |
|
| 76,773,184 |
| 49,874,889 | ||
|
|
|
|
|
|
|
| ||
| Finance Charges | 16 |
|
| 245,164,747 |
| 85,035,741 | ||
|
|
|
|
|
|
| |||
| Depreciation/Amortisation/Depletion (Refer Schedule 5)
|
|
| 5,183,064
|
| 56,331,907
| |||
|
|
|
| 489,046,135 |
| 355,676,123 | |||
|
|
|
|
|
|
| |||
| Loss before taxation |
|
| 331,391,269 |
| 315,546,514 | |||
|
|
|
|
|
|
| |||
| Less: Provision for taxation |
|
|
|
|
| |||
| (Refer Note 9 on Schedule 17 and Note 25 on Schedule 18) |
|
|
|
| ||||
| -Fringe Benefits Tax |
|
| - |
| 3,103,831 | |||
|
|
|
|
|
|
| |||
| Loss after taxation |
|
| 331,391,269 |
| 318,650,345 | |||
|
|
|
|
|
|
| |||
| Loss carried forward from previous year |
|
| 535,022,842 |
| 216,372,497 | |||
|
|
|
|
|
|
| |||
| Balance carried to Balance Sheet |
|
| 866,414,111 |
| 535,022,842 | |||
|
|
|
|
|
|
| |||
| Loss Per Share (Basic/Diluted) on equity shares of Rs 10 each |
|
| 5.80 |
| 5.85 | |||
| (Refer Note 14 on Schedule 17 & Note 21 on Schedule 18) |
|
|
|
|
| |||
Significant Accounting Policies 17
Notes to Accounts 18
| This is the Profit & Loss Account referred to in our report of even date | Schedules referred to above form an integral part of Profit & Loss Account |
|
| For Price Waterhouse Firm Registration No. 012754N Chartered Accountants | For and on behalf of Board of Directors
|
|
|
| Yogendra Kr. Modi Chairman & Chief Executive Officer | K.N. Memani Director |
| V. Nijhawan Partner Membership Number F-87228 |
Prashant Modi
|
|
|
| President & Chief Operating Officer |
|
|
Place: Gurgaon Date: July 5, 2010 | S. Suriyanarayanan Chief Financial Officer | Parveen Arora Company Secretary |
| GREAT EASTERN ENERGY CORPORATION LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2010
|
|
|
| |
|
|
| Year Ended | Year Ended | |
|
|
| 31.03.2010 |
| 31.03.2009 |
| A. Cash Flow from Operating Activities |
| (Rs) |
| (Rs) |
| Loss before Tax |
| 331,391,269 |
| 315,546,514 |
| Adjustments for: |
|
|
|
|
| Depreciation/Amortisation |
| 5,183,064 |
| 56,331,907 |
| Interest Income |
| (2,516,293) |
| (2,992,114) |
| Income from sale of Current Investments |
| (9,337,731) |
| - |
| Employee Stock Option Outstanding Account |
| 906,575 |
| 695,054 |
| Provision for Inventory Obsolesce |
| 13,265,496 |
| - |
| Provision for Site Restoration Cost |
| 1,643,925 |
| 1,143,600 |
| Provision for Gratuity and Other Employee Benefits |
| 5,324,350 |
| 930,949 |
| Provision for Service Tax Receivable |
| 985,888 |
| 3,735,329 |
| Loss on Sale of Capital Inventory/Assets |
| 259,411 |
| - |
| Provision for Wealth Tax |
| 33,450 |
| 55,078 |
| Interest Expenses |
| 243,343,767 |
| 83,184,190 |
| Unrealised Foreign Exchange Loss (Gain) |
| (4,886,620) |
| 7,255,648 |
| Liability no longer required written back |
| (16,156,073) |
| (3,617,389) |
| Operating (Loss) before Working Capital Changes |
| (93,342,060) |
| (168,824,262) |
|
|
|
|
|
|
| Adjustments for changes in working capital: |
|
|
|
|
| (Increase)/Decrease in Sundry Debtors |
| (27,930,059) |
| (1,325,570) |
| (Increase)/Decrease in Other Current Assets |
| 1,191,374 |
| (1,256,070) |
| (Increase)/Decrease in Loans and Advances |
| 32,511,001 |
| (58,332,837) |
| Increase/(Decrease) in Current Liabilities |
| 46,285,336 |
| 416,640,532 |
|
|
|
|
|
|
| Taxes paid/refunded |
|
|
|
|
| Fringe Benefits tax paid |
| (367,512) |
| (2,736,319) |
| Current Tax refunded |
| 10,242,886 |
| 13,622,117 |
| Wealth Tax paid |
| (55,078) |
| (43,800) |
| Net Cash from Operating Activities |
| (31,464,112) |
| 197,743,790 |
|
|
|
|
|
|
| B. Cash Flow from Investing Activities |
|
|
|
|
| Purchase of Fixed Assets |
| (822,597,753) |
| (606,586,530) |
| Proceeds from Sale of Fixed Assets |
| 4,069,725 |
| 28,711 |
| Purchase of Investments |
| (4,301,303,396) |
| - |
| Sales of Investments |
| 3,327,939,679 |
| - |
| Increase in Capital Work in Progress |
| (454,519,763) |
| (896,500,338) |
| Interest Received |
| 3,397,358 |
| 5,352,079 |
| Net Cash (used in) Investing Activities |
| (2,243,014,150) |
| (1,497,706,077) |
|
|
|
|
|
|
| C. Cash Flow from Financing Activities |
|
|
|
|
|
|
|
|
|
|
| Proceeds from Borrowings |
| 1,054,565,573 |
| 1,416,429,263 |
| Proceeds from short term borrowings |
| 9,000,000 |
| - |
| Repayment of long term borrowings |
| (668,710,624) |
| - |
| Repayment of short Term borrowings |
| (9,000,000) |
| - |
| Borrowing Cost (including interest) |
| (341,358,691) |
| (182,971,092) |
| Proceeds from issue of shares |
| 2,186,712,060 |
| - |
| Net Cash generated from Financing Activities |
| 2,231,208,318 |
| 1,233,458,171 |
|
|
|
|
|
|
| Net changes in cash & cash equivalents (A+B+C) |
| (43,269,944) |
| (66,504,116) |
|
|
|
|
|
|
| Cash & cash equivalents at beginning of the year |
| 54,360,776 |
| 120,864,892 |
| Cash & cash equivalents at end of the year |
| 11,090,832 |
| 54,360,776 |
|
|
|
|
|
|
| GREAT EASTERN ENERGY CORPORATION LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2010 (CONTD.)
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended |
| Year Ended |
|
|
| 31.03.2010 |
| 31.03.09 |
|
|
| (Rs.) |
| (Rs.) |
| Cash & cash equivalents comprise |
|
|
|
|
| Cash in Hand |
| 105,786 |
| 27,841 |
| Cheques in Hand |
| - |
| 181,365 |
| With Scheduled Banks: |
|
|
|
|
| -On Current Accounts |
| 7,221,495 |
| 25,404,070 |
| -On Fixed Deposit Accounts |
| 3,763,551 |
| 28,747,500 |
| (Refer Note 4 below) |
|
|
|
|
|
|
| 11,090,832 |
| 54,360,776 |
Notes:
1. Cash flow statement has been prepared under the indirect method as set out in the Accounting Standard AS)3 Cash Flow Statement as notified under Section 211(3C) of the Companies Act, 1956.
2. Cash and cash equivalents represent cash and bank balances only.
3. Figures of the previous year have been regrouped / rearranged wherever considered necessary.
4. Cash and cash equivalents include margin money deposits of Rs. 947,000 (Previous Year Rs. 28,747,500) against Letter of Credit and Bank Guarantee issued by Banks on behalf of the company.
| This is the Cash Flow Statement referred to in our report of even date | Schedules referred to above form an integral part of the Cash Flow Statement |
|
| For Price Waterhouse Firm Registration No. 012754N Chartered Accountants | For and on behalf of Board of Directors
|
|
|
| Yogendra Kr. Modi Chairman & Chief Executive Officer | K.N. Memani Director |
| V. Nijhawan Partner Membership Number F-87228 |
Prashant Modi
|
|
|
| President & Chief Operating Officer |
|
|
Place: Gurgaon Date: July 5, 2010 | S. Suriyanarayanan Chief Financial Officer | Parveen Arora Company Secretary |
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET
|
|
| As at | As at |
| ||||||||||
|
|
| 31.03.2010 |
| 31.03.2009 |
| |||||||||
|
| Rs. |
| Rs. |
| Rs. |
| ||||||||
| SCHEDULE-1 |
|
|
|
|
|
| ||||||||
| SHARE CAPITAL |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
| |||||||
| Authorised: |
|
|
|
|
|
| ||||||||
| 65,000,000 equity shares of Re 10/- each |
|
|
|
|
| |||||||||
| (Previous year 650,000,000 equity shares of Re 1/- each |
|
| 650,000,000 |
| 650,000,000 |
| ||||||||
|
|
|
|
|
|
| |||||||||
| Issued, Subscribed & Paid up |
|
|
|
|
| |||||||||
| 58,061,950 equity shares of Re 10/- each fully paid-up |
| 580,619,500 |
| 544,619,499 |
| |||||||||
| (Previous year 544,619,499 equity shares of Re 1/- each fully paid-up) |
|
|
|
| ||||||||||
| (Refer Note 11 & 21(b) on Schedule 18) |
|
|
|
|
| |||||||||
|
|
| 580,619,500 |
| 544,619,499 |
| |||||||||
|
|
|
|
|
|
| |||||||||
| SCHEDULE-2 |
|
|
|
|
| |||||||||
| STOCK OPTION OUTSTANDING ACCOUNT |
|
|
|
|
| |||||||||
| (Refer Note 8 on Schedule 17 & Note 15 on Schedule 18) |
|
|
|
|
| |||||||||
|
|
|
|
|
|
| |||||||||
| Employee Stock Option outstanding account | 3,586,220 |
|
|
| 2,296,170 | |||||||||
| Less: Deferred Employee Stock Option outstanding account | 1,984,591 |
|
|
| 1,601,116 | |||||||||
|
|
| 1,601,629 |
| 695,054 |
| |||||||||
| SCHEDULE-3 |
|
|
|
|
| |||||||||
| RESERVES AND SURPLUS |
|
|
|
|
| |||||||||
|
|
|
|
|
|
| |||||||||
| Securities Premium Account |
|
|
|
|
| |||||||||
| (Refer Note 11 on Schedule 18) |
|
|
|
|
| |||||||||
|
|
|
|
|
|
| |||||||||
| Opening Balance | 1,486,594,797 |
|
|
| 1,486,594,797 | |||||||||
| Add: Addition during the year | 2,150,712,059 |
|
|
| - | |||||||||
| Less: Share Issue Expenditure | 52,232,260 |
|
|
| - | |||||||||
|
|
|
| 3,585,074,596 |
| 1,486,594,797 | |||||||||
| SCHEDULE-4 |
|
|
|
|
| |||||||||
| SECURED LOANS |
|
|
|
|
| |||||||||
| (Refer Note 6 on Schedule 18) |
|
|
|
|
| |||||||||
|
|
|
|
|
|
| |||||||||
| Long Term Loans |
|
|
|
|
| |||||||||
|
|
|
|
|
|
| |||||||||
| Indian Rupee Loan | 2,141,444,833 |
|
| 1,804,892,173 |
| |||||||||
| Interest Accrued and due | - |
|
|
| 10,385,971 | |||||||||
|
|
| 2,141,444,833 |
| 1,815,278,144 |
| |||||||||
|
|
|
|
|
|
| |||||||||
| Foreign Currency Loan |
| 397,496,430 |
| - |
| |||||||||
|
|
|
|
|
|
| |||||||||
| Loan from Others |
| - |
| 357,500,000 |
| |||||||||
|
|
| 2,538,941,263 |
| 2,172,778,144 |
| |||||||||
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET
SCHEDULE-5
FIXED ASSETS
(Refer Notes 4, 5,6,12 & 13 on Schedule 17 and Notes 13 and 16(b) on Schedule 18) Rs.
|
| GROSS BLOCK | DEPRECIATION/AMORTISATION/DEPLETION | NET BLOCK | |||||||||
|
| As at 01.04.2009 | Additions during the year | Transfer from Capital Work in Progress | Disposals during the year | As at 31.03.2010 | As at 01.04.2009 | For the year(Refer Note 2) | Adjustment (Refer Note 13 on Schedule 18) | On disposal during the year | As at 31. 03. 2010 | As at 31.03.2010 | As at 31.03.2009 |
|
INTANGIBLE ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| Computer Software | 7,713,399 | 936,000 | - | - | 8,649,399 | 3,546,584 | 1,525,945 | - | - | 5,072,529 | 3,576,870 | 4,166,815 |
| Right of Use | 4,735,000 | - | - | - | 4,735,000 | 710,250 | 947,000 | - | - | 1,657,250 | 3,077,750 | 4,024,750 |
| TANGIBLE ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| Land-Free hold | 23,565,447 | 18,985,345 | - | - | 42,550,792 |
|
|
|
|
| 42,550,792 | 23,565,447 |
| -Lease hold | 8,662,911 | 947,270 | - | - | 9,610,181 | 395,572 | 163,190 | - | - | 558,762 | 9,051,419 | 8,267,339 |
|
Building (Refer Note 1 below) | 86,279,264 | 10,786,055 | - | 938,060 | 96,127,259 | 7,002,248 | 2,439,140 | 4,206,748 | 415,838 | 4,818,801 | 91,308,458 | 79,277,016 |
| Plant & Machinery (Refer Note 3 below) | 630,703,370 | 790,165,428 | - | 4,416,715 | 1,416,452,083 | 87,978,078 | 64,668,222 | 52,663,068 | 609,801 | 99,373,433 | 1,317,078,650 | 542,725,292 |
| Producing Properties | 1,046,243,356 | - | 739,705,269 | - | 1,785,948,625 | 7,152,101 | 10,699,250 | - | - | 17,851,351 | 1,768,097,274 | 1,039,091,255 |
| Furniture & Fixtures | 14,052,826 | 777,655 | - | - | 14,830,481 | 3,435,479 | 914,323 | 2,085,044 | - | 2,264,758 | 12,565,723 | 10,617,347 |
| Vehicles | 11,165,681 | - | - | - | 11,165,681 | 4,370,147 | 1,091,343 | 2,474,459 | - | 2,987,031 | 8,178,650 | 6,795,534 |
| Total | 1,833,121,254 | 822,597,753 | 739,705,269 | 5,354,775 | 3,390,069,501 | 114,590,459 | 82,448,413 | 61,429,319 | 1,025,639 | 134,583,915 | 3,255,485,586 | 1,718,530,795 |
| Previous Year | 707,309,100 | 624,180,657 | 501,785,715 | 154,218 | 1,833,121,254 | 35,271,268 | 79,371,600 | - | 52,409 | 114,590,459 | 1,718,530,795 | 672,037,832 |
Notes:-
| 1. Building includes: |
| a) Premises acquired for Rs. 19,117,000 (Previous Year Rs. 20,055,060) which are yet to be registered in the name of the Company. |
| b) Warehouse constructed at a cost of Rs 211,000 (Previous Year Rs. 211,000) on land not owned by the Company. |
| c) Premises acquired for Rs 13,012,000 (Previous Year Rs 13,012,000) on Finance Lease.
|
| 2. Out of current period depreciation, depreciation on project assets amounting to Rs 15,836,033 ( Previous Year Rs.23,039,692) has been charged to |
| Capital Work in progress and balance Rs.5,183,065 (Previous Year Rs.55,331,907) has been charged to Profit and Loss Account. Also refer note 13 on Schedule 18.
|
| 3. Plant and Machinery include pipelines of Rs.874,099,964 (Previous Year Rs.210,492,510) laid on land, the 'Right of use' of which |
| is available for period ranging from five to ten years and are renewable on mutual consent of parties. |
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET
SCHEDULE-6
CAPITAL WORK IN PROGRESS (CWIP)
(A) EXPLORATORY WELLS IN PROGRESS
(Pending Capitalisation/Allocation)
(Refer Notes 4,5 & 13 on Schedule 17) (Rs.)
| S. No. | Description | As at 01.04.2009 | Additions during the year | Capitalisation during the year | As at 31.03.2010 |
| ||||
| 1 | Signature Bonus | 8,100,000 | - | 1,000,000 | 7,100,000 |
| ||||
| 2 | Land Development | 61,324,410 | 15,797,148 | 12,312,625 | 64,808,933 |
| ||||
| 3 | Casing Pipes | 46,939,363 | 23,562,776 | 22,293,763 | 48,208,376 |
| ||||
| 4 | Cementing Charges | 49,030,106 | 13,361,770 | 21,066,336 | 41,325,540 |
| ||||
| 5 | Drilling Charges | 98,717,135 | 49,855,264 | 28,188,467 | 120,383,932 |
| ||||
| 6 | Fracturing Charges | 247,063,774 | 104,368,891 | 221,841,595 | 129,591,070 |
| ||||
| 7 | Logging & Wireline Charges | 43,452,770 | 46,056,190 | 34,866,225 | 54,642,735 |
| ||||
| 8 | Mobilisation/Demobilisation Expenses | 39,226,964 | 158,434 | 5,840,644 | 33,544,754 |
| ||||
| 9 | Workover Expenses | 35,876,433 | 6,230,347 | 11,853,640 | 30,253,140 |
| ||||
| 10 | Core Hole | 58,091,637 | 4,816,119 | 13,507,681 | 49,400,075 |
| ||||
| 11 | Salaries, Wages and Bonus | 119,517,954 | 42,052,305 | 14,040,728 | 147,529,531 |
| ||||
| 12 | Contribution to Provident and Other Fund | 3,681,052 | 5,217,019 | 1,222,850 | 7,675,221 |
| ||||
| 13 | Staff Welfare | 810,089 | 417,195 | 461,416 | 765,868 |
| ||||
| 14 | Repairs and Maintenance(Refer Note 1 below) | 13,748,877 | 12,564,923 | 6,383,709 | 19,930,091 |
| ||||
| 15 | Power & Fuel | 918,981 | 338,763 | 138,545 | 1,119,199 |
| ||||
| 16 | Insurance | 2,663,598 | 1,165,529 | 534,008 | 3,295,119 |
| ||||
| 17 | Rates and Taxes | 2,657,144 | 1,049,395 | 593,265 | 3,113,274 |
| ||||
| 18 | Rent | 7,225,960 | 1,380,994 | 653,813 | 7,953,141 |
| ||||
| 19 | Postage, Printing & Stationery | 386,346 | 280,098 | 105,187 | 561,257 |
| ||||
| 20 | Technical Fees | 347,915 | - | 347,915 | - |
| ||||
| 21 | Water Charges | 1,264,129 | 273,760 | 1,427 | 1,536,462 |
| ||||
| 22 | Environment & Survey Charges | 3,087,105 | - | 82,992 | 3,004,113 |
| ||||
| 23 | Communication Expenses | 2,665,737 | 1,224,422 | 464,066 | 3,426,093 |
| ||||
| 24 | Clearing & Forwarding Charges | 520,174 | - | 10,675 | 509,499 |
| ||||
| 25 | Freight & Cartage | 2,101,102 | 31,160 | 58,287 | 2,073,975 |
| ||||
| 26 | Shifting Charges | 896,244 | 126,490 | 241,806 | 780,928 |
| ||||
| 27 | Consultancy | 10,222,711 | 13,720,591 | 5,832,007 | 18,111,295 |
| ||||
| 28 | Fees & Legal Expenses | 7,024,651 | 57,610 | 35,132 | 7,047,129 |
| ||||
| 29 | Force Majeure Expenses | 2,380,500 | - | - | 2,380,500 |
| ||||
| 30 | Foreign Exchange Fluctuation | (1,764,985) | - | - | (1,764,985) |
| ||||
| 31 | Equipment Hiring Charges | 67,326,387 | 31,121,476 | 35,198,885 | 63,248,978 |
| ||||
| 32 | Lab Charges | 7,735 | - | - | 7,735 |
| ||||
| 33 | Security Expenses | 7,816,026 | 11,214,522 | 4,900,790 | 14,129,758 |
| ||||
| 34 | Stores and Spares Consumed | 205,264,897 | 77,011,953 | 120,025,409 | 162,251,441 |
| ||||
| 35 | Travelling & Conveyance | 51,963,785 | 15,695,699 | 8,755,957 | 58,903,527 |
| ||||
| 36 | Well Testing Charges | 8,858,583 | 117,047 | 267,638 | 8,707,992 |
| ||||
| 37 | Bank Charges | 4,368,360 | 571,658 | 916,077 | 4,023,941 |
| ||||
| 38 | Depreciation/Amortisation/Depletion | 29,616,761 | 15,836,033 | 8,685,196 | 36,767,598 |
| ||||
| 39 | Miscellaneous Expenses | 9,687,209 | 7,814,042 | 2,258,139 | 15,243,112 |
| ||||
|
|
| 1,253,087,619 | 503,489,623 | 584,986,895 | 1,171,590,347 |
| ||||
|
(B) OTHER ASSETS | 266,820,417 |
|
| 129,932,829 |
| |||||
|
(C) CAPITAL INVENTORY | 401,473,887 |
|
| 430,534,371 |
| |||||
| (Refer Note 2 below)
(D) CAPITAL ADVANCES | 34,487,339 |
|
| 11,501,263 |
| |||||
| (Refer Note 2 on Schedule 18)
(E) BORROWING COST (Refer Note 3 below and Note 6 on Schedule 18) | 177,100,437 |
|
| 107,242,013 |
| |||||
|
|
|
|
|
|
|
| ||||
|
|
| 2,132,969,699 | 503,489,623 | 584,986,895 | 1,850,800,823 |
| ||||
| Less: Interest Earned on Margin Money Deposit | 236,150 |
|
| 236,150 |
| |||||
|
| 2,132,733,549 | 503,489,623 | 584,986,895 | 1,850,564,673 |
| |||||
| Note: |
|
|
|
|
| |||||
| 1. Repair and Maintenance includes Repair to Machinery Rs 121,195(Previous Year Rs. 3,765,954). |
| |||||||||
| 2. Net of provision for obsolescence Rs. 13,265,496 (Previous year Rs. Nil) charged to provision for inventory obsolesces. | ||||||||||
| 3. Borrowing cost is net of Rs.519,968( previous year Rs. 2,860,484) being the income earned on temporary investments on term loans. | ||||||||||
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET
|
|
| As at | As at | |
|
|
| 31.03.2010 |
| 31.03.2009 |
| SCHEDULE-7 | Rs. | Rs.
|
| Rs. |
| INVESTMENTS |
|
|
|
|
| (Refer Note 3 on Schedule 17 and Note 14 on Schedule 18) |
|
|
|
|
|
|
|
|
|
|
| Non-Trade Investments |
|
|
|
|
| Current Investments (Unquoted) |
|
|
|
|
| Units of Mutual Funds |
| 982,701,448 |
| - |
|
|
| 982,701,448 |
| - |
| SCHEDULE-8 |
|
|
|
|
| SUNDRY DEBTORS |
|
|
|
|
| Secured-Considered Good |
|
|
|
|
| -Debts outstanding for a period exceeding six months |
| - |
| - |
| -Other Debts |
| 105,137 |
| - |
|
|
|
|
|
|
| Unsecured-Considered Good |
|
|
|
|
| -Debts outstanding for a period exceeding six months |
| - |
| - |
| -Other Debts |
| 30,107,664 |
| 2,282,742 |
| (Unsecured debtors are secured through bank guarantee amounting to Rs 4,608,822 (Previous Year Rs 1,364,135) |
|
|
|
|
|
|
| 30,212,801 |
| 2,282,742 |
SCHEDULE -9
| CASH AND BANK BALANCES |
|
|
|
|
| Cash in Hand |
| 105,786 |
| 27,841 |
| Cheques in Hand |
| - |
| 181,365 |
| Balances with Scheduled Banks: |
|
|
|
|
| - On Current Accounts |
| 7,221,495 |
| 25,.404,070 |
| - On Fixed Deposit Accounts (Refer Note 12 on Schedule 18) |
| 3,763,551 |
| 28,747,500 |
|
|
| 11,090,832 |
| 54,360,776 |
SCHEDULE - 10
| OTHER CURRENT ASSETS |
|
|
|
|
| Interest accrued on Fixed Deposits |
| 237,520 |
| 1,067,879 |
| Sundry Deposits |
| 2,568,925 |
| 2,929,940 |
|
|
| 2,806,445 |
| 3,997,819 |
| SCHEDULE-11 |
|
|
|
|
| LOANS AND ADVANCES |
|
|
|
|
| (Unsecured - Considered good unless otherwise stated) |
|
|
|
|
| Advances recoverable in cash or kind or for value to be received (Refer Note 2 on Schedule 18) |
|
|
|
|
| - Considered Good |
| 17,870,758 |
| 105,337,033 |
| - Considered Doubtful | 4,721,217 |
|
| 3,735,329 |
| Less: Provision for Doubtful Advances | 4,721,217 |
|
| 3,735,329 |
|
|
| - |
| - |
| Advance Income Tax/Tax Deducted at Source |
| 8,211,790 |
| 17,519,000 |
|
|
|
|
|
|
| Advance Fringe Benefits Tax | 6,181,108 |
|
| - |
| Less: Provision for Fringe Benefits Tax | 5,934,540 |
|
| - |
|
|
| 246,568 |
| - |
|
|
|
|
|
|
|
|
| 26,329,116 |
| 122,856,033 |
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET
|
|
| As at 31.03.2010 |
| As at 31.03.2009 |
| SCHEDULE-12 | Rs. | Rs.
|
| Rs. |
| CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
| a) Current Liabilities |
|
|
|
|
|
Sundry Creditors |
|
|
|
|
| - Due to Micro and Small Enterprises (Refer Note 18 on Schedule 18) |
| - |
| - |
| - Due to Others |
| 265,419,202 |
| 328,361,167 |
| Advance from Customers |
| 936,952 |
| 100,000 |
| Other Liabilities |
| 25,428,524 |
| 22,079,605 |
|
|
| 291,784,678 |
| 350,540,772 |
|
|
|
|
|
|
| b) Provisions |
|
|
|
|
| For Site Restoration (Refer Note 10 on Schedule 18) |
| 5,289,150 |
| 3,645,225 |
| For Gratuity (Refer Note 7 on Schedule 17 & Note 9 on Schedule 18) |
| 4,468,494 |
| 2,062,460 |
| For Leave Encashment (Refer Note 7 on Schedule 17 & Note 9 on Schedule 18) |
| 11,664,632 |
| 5,338,860 |
| For Superannuation (Refer Note 7 on Schedule 17 & Note 9 on Schedule 18) |
| 6,127,620 |
| 3,333,723 |
| For Wealth Tax |
| 33,450 |
| 55,078 |
| For Fringe Benefit Tax |
| - |
| 5,934,540 |
| Less: Advance Fringe Benefit Tax |
| - |
| 5,813,596 |
|
|
| - |
| 120,944 |
|
|
| 27,583,346 |
| 14,556,290 |
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT
|
|
| Year ended | Year ended | |
|
|
| 31.03.2010 |
| 31.03.2009 |
| SCHEDULE-13 |
| Rs.
|
| Rs. |
| OTHER INCOME (Refer Note 2(b) on Schedule 17)
|
|
|
|
|
|
|
|
|
|
|
| Interest on Fixed Deposits (Gross) (Including TDS Rs 720 (previous year Nil) |
| 7,192 |
| 2,534 |
| Interest on Income Tax Refund |
| 927,444 |
| 1,562,577 |
| Interest (Others) |
| 1,581,657 |
| 1,795,483 |
| Income from Sale of Stores |
| 3,523,342 |
| - |
| Provisions/Liabilities no longer required written back |
| 16,156,073 |
| 3,617,389 |
| Foreign Exchange Gain(Net) |
| 8,134,974 |
| - |
| Profit on sale of current investments |
| 9,337,731 |
| - |
| Miscellaneous Income |
| 648,017 |
| 962,035 |
|
|
|
|
|
|
|
|
| 40,316,430 |
| 7,940,018 |
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF PROFIT AND LOSS ACCOUNT
|
| Year ended |
| Year ended |
|
| 31.03.2010 |
| 31.03.2009 |
| SCHEDULE-14 | Rs. |
| Rs. |
| MANUFACTURING AND OTHER EXPENSES |
|
|
|
|
|
|
|
|
| Workover Expenses | 4,574,657 |
| 11,654,289 |
| Stores and Spares Consumed | 16,959,242 |
| 27,483,763 |
| Outward Freight | 8,450,191 |
| 6,143,157 |
| Royalty | 7,168,290 |
| 2,106,432 |
| Production Level Payments | 1,792,074 |
| 526,597 |
| Repairs & Maintenance |
|
|
|
| - Building | 61,172 |
| 33,100 |
| - Plant and Machinery | 10,534,616 |
| 4,212,372 |
| - Others | 4,417,852 |
| 6,326,902 |
| Power and Fuel | 549,424 |
| 526,062 |
| Insurance | 1,715,773 |
| 2,179,072 |
| Rent | 6,934,565 |
| 7,188,728 |
| (Refer Note 16(a) on Schedule 18) |
|
|
|
| Rates & Taxes | 1,027,409 |
| 2,434,988 |
| Postage, Printing & Stationery | 736,543 |
| 743,682 |
| Communication | 4,436,198 |
| 4,049,176 |
| Travelling & Conveyance | 18,594,451 |
| 19,447,881 |
| Fee & Legal Expenses | 8,149,654 |
| 7,437,640 |
| Freight & Cartage | 26,642 |
| 53,198 |
| Equipment Hiring Charges | 3,863,854 |
| 3,961,660 |
| Foreign Exchange Loss (Net) | - |
| 10,084,285 |
| Directors Fee | 340,000 |
| 560,000 |
| Advertisement and Publicity | 357,094 |
| 626,591 |
| Audit Fees | 5,371,976 |
| 3,490,886 |
| (Refer Note 19 on Schedule 18) |
|
|
|
| Consultancy | 19,981,331 |
| 25,404,486 |
| Security Expenses | 8,224,361 |
| 4,953,514 |
| Conference and Subscription | 3,713,968 |
| 3,433,926 |
| Loss on Sale of Assets (Net) | 259,411 |
| - |
| Business Promotion Expenses | 1,548,597 |
| 1,471,877 |
| Well Testing Charges | 432,465 |
| 531,667 |
| Community Development Expenses | 1,654,737 |
| 611,026 |
| Mobilisation/Demobilisation Expenses | 27,327 |
| 521,011 |
| Provision for Service Tax Receivable | 985,888 |
| 3,735,329 |
| Provision for Site Restoration | 1,643,925 |
| 1,143,600 |
| (Refer Note 10 on Schedule 18) |
|
|
|
| Commission on Sale | 278,855 |
| 49,045 |
| Provision for Inventory Obsolesces | 13,265,496 |
| - |
| Survey & Information Expense | 1,320,000 |
| - |
| Right of Way Expenses | 1,119,761 |
| 180,020 |
| Miscellaneous Expenses | 1,407,341 |
| 1,127,624 |
|
| 161,925,140 |
| 164,433,586 |
| SCHEDULE-15 |
|
|
|
|
| PERSONNEL EXPENSES |
|
|
|
|
| (Refer Note 7 on Schedule 17 and Note 9,15 and 22 on Schedule 18) |
|
|
|
|
|
|
|
|
|
|
| Salaries, Wages and Bonus |
| 72,131,399 |
| 46,687,482 |
| Contribution to Provident Funds |
| 3,323,201 |
| 2,012,809 |
| Staff Welfare |
| 1,318,584 |
| 1,174,598 |
|
|
| 76,773,184 |
| 49,874,889 |
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF PROFIT AND LOSS ACCOUNT
|
|
| Year ended |
| Year ended |
|
|
| 31.03.2010 |
| 31.03.2009 |
|
|
| Rs. |
| Rs. |
| SCHEDULE-16 |
|
|
|
|
| FINANCE CHARGES |
|
|
|
|
| (Refer Note 13 on Schedule 17 and Note 7 on Schedule 18) |
|
|
|
|
|
|
|
|
|
|
| Interest/Finance Charges |
|
|
|
|
| On Term Loans |
|
|
|
|
| - Long Term Loan |
| 243,162,378 |
| 83,184,190 |
| - Short Term Loan |
| 181,389 |
| 368,480 |
| Bank Charges |
| 1,820,980 |
| 1,483,071 |
|
|
| 245,164,747 |
| 85,035,741 |
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
Schedule 17
Significant Accounting Policies:
1. Basis of Accounting
The financial statements have been prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards notified under section 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.
2. Revenue Recognition
a. Revenue on sale of Coal Bed Methane (CBM) is recognised on sale of gas to customers at delivery point. Revenue on sale of Compressed Natural Gas (CNG) is recognised on sale of gas to customers at retail outlet. Net Sales represent invoiced value of gas delivered less excise duty and value added tax.
b. Interest income is recognised on accrual basis.
3. Investments
Current investments are stated at lower of cost or market value. Cost is determined as per the weighted average cost method.
4. Fixed Assets
i) Tangible Assets
Fixed Assets are stated at their cost of acquisition together with any incidental expenses of acquisition.
ii) Intangible Assets
Intangible Assets at cost less accumulated benefits are recognised only when future economic benefits attributable to the assets will flow to the enterprise and their cost can be measured reliably.
iii) Capital Inventory
Capital Inventory represents primarily items of capital nature lying in the stores valued on a weighted average cost method after providing for cost of obsolescence. Items of capital inventory used for wells under construction are transferred to Capital work in progress and capitalized as part of Producing Properties on commissioning of the wells. Items of Inventory consumed for producing wells are charged to Profit and Loss Account.
iv) Impairment of Fixed Assets
Cash generating units/assets are assessed for possible impairment at the balance sheet date based on external and internal sources of information. Impairment losses, if any, are recognised as an expense in the Profit & Loss Account.
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
Schedule 17
Significant Accounting Policies (Contd.)
5. Exploratory Wells in Progress and Producing Properties
Expenses incurred for developing and constructing wells have been capitalised and included under the head Capital Work in Progress in line with the suggested treatment prescribed by the Institute of Chartered Accountants of India in the 'Guidance Note on Accounting for Oil and Gas Producing Activities' under the 'Full Cost' method.
Producing Properties are created and included under the head fixed assets in respect of a well having developed reserves when the well is ready to commence commercial production.
6. Depreciation/ Amortisation/ Depletion
Depreciation has been provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 except the following:
Building constructed on land not owned by the Company is being depreciated over a period of five years.
Depreciation on assets utilized for the Project has been capitalised under the head Capital Work in Progress.
Assets costing less than Rs 5,000 are fully depreciated in the year of purchase.
Software costs are amortised over their estimated useful life not exceeding 5 years on a straight line basis.
Right of Use is amortised over the period for which right of use of land is available.
Leasehold land is being amortised over the period of the lease.
Cost of wells capitalized is depleted according to the 'Unit of Production' method as prescribed by the Institute of Chartered Accountants of India in the 'Guidance Note on Accounting for Oil and Gas Producing Activities' under the 'Full Cost' Method.
7. Employee Benefits
The Company has defined contribution plans like Provident and Family Pension Fund which are administered by the government authorities. Contributions made by the Company to these funds are recognised in the Profit & Loss Account/ Capital Work in Progress Account on an accrual basis.
The Company also provides for retirement benefits with defined benefits in the form of Gratuity and Superannuation. Such benefits though, not funded, are provided for based on actuarial valuation at the Balance Sheet date. Actuarial gains and losses are recognised immediately in the Profit & Loss Account/ Capital Work in Progress.
Other employee benefits are recognised as an expense in the Profit & Loss Account/ Capital Work in Progress of the year in which the related service is rendered.
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
Schedule 17
Significant Accounting Policies (Contd.)
8. Stock Options Plan
Stock options grants to employees and to the non executive directors who accept the grant under the Company's Stock Option Plan are accounted in accordance with 'Guidance note on Accounting for Employee Share Based Payments' issued by the Institute of Chartered Accountants of India. The Company follows Intrinsic Value method and accordingly the excess, if any, of the market price of the underlying equity shares as of the date of the grant of option over the exercise price of the option is recognised as employee compensation cost and amortised on straight line basis over the vesting period.
9. Taxation
Current tax represents the amount that would be payable based on computation of tax as per prevailing taxation laws under the Income Tax Act, 1961.
Deferred tax is recognised, subject to the consideration of prudence, on timing differences being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognised unless there is reasonable certainty (in case of brought forward loss and unabsorbed depreciation when there is virtual certainty) that sufficient future taxable income will be available against which such deferred tax assets can be realized.
10. Foreign Currency Transactions
Transactions in foreign currencies are recorded in rupees by applying the exchange rate prevailing at the time of transactions. Exchange fluctuation on settlement and those arising on translation of monetary assets and liabilities denominated in foreign currency at the balance sheet date are recognised in the profit and loss account as exchange gain or loss made during the year.
Loss on forward exchange contracts relating to firm commitments or highly probable forecast transactions is computed by multiplying the foreign currency amount of the forward exchange contract by the difference between the forward rate available at the reporting date for the remaining maturity of the contract and the contracted forward rate and recorded in the Profit & Loss Account. However, gain if any, relating to above transactions is accounted for only when the gain is realised.
11. Provisions and Contingencies
Provisions are recognized when the Company has a present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made. Provisions required to settle are reviewed regularly and are adjusted where necessary to reflect the current best estimates of the obligation. Where the Company expects a provision to be reimbursed, the reimbursement is recognized as a separate asset, only when such reimbursement is virtually certain. Contingent liabilities are disclosed after an evaluation of the facts and legal aspects of the matters involved.
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
Schedule 17
Significant Accounting Policies (Contd.)
12. Leases
(i) Operating Leases
Lease Rentals are recognised as an expense on straight line basis over the term of the lease.
(ii) Finance Leases
Assets acquired under finance leases are recognised as an Asset and a Liability at the lower of the fair value of the leased assets at inception of the lease and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to periods during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability and charged to the Profit and Loss Account.
13. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use are capitalised till substantial completion of all the activities that are necessary for this purpose. Other borrowing costs are charged to Profit and Loss Account.
14. Earnings Per Share (EPS)
The earnings considered in ascertaining the Company's EPS comprises the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of equity shares outstanding during the year.
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE - 18
NOTES TO ACCOUNTS
1. Contingent Liabilities
i) Claims made against the Company not acknowledged as debts:
| Sl. No. | Particulars | As at 31 March 2010 Rs | As at 31 March 2009 Rs. |
| (a) | M/s Adkins Services Inc. (Claim made by contractor against the Company for loss of profit and damages including interest thereon of Rs. 205,681,274(Previous Year Rs 169,296,864)) (Also Refer Note 2) | 483,781,274 | 447,496,274 |
| (b) | M/s M.R Associates (for amounts claimed by contractor as payable along with interest) | 925,165 | 812,569 |
| (c) | M/s D. S. Steel (for amounts claimed by contractor as payable along with interest).(Also refer Note 4) | 9,975,484 | 8,292,610 |
| (d) | Goel Construction (India) Limited (for amounts claimed by contractor as payable along with interest) (Also Refer Note 5) | 30,262,764 | - |
| (e) | Government of India (Ministry of Petroleum & Natural Gas) (Also Refer Note 3) | 11,704,714 | 10,843,714 |
| (f) | Claims made by Income tax Authorities (Amount deposited under protest Rs 2,326,560 (Previous Year Rs Nil)) | 8,017,720 | 2,326,560 |
Future cash outflows in respect of the above are determinable on finalisation of judgments / decisions pending with various forums / authorities.
ii) Bank Guarantee
Counter Guarantee given by the Company to its bankers and outstanding as on 31.03.2010 amounting to Rs 947,000 (Previous Year Rs 4,011,500).
2. Capital Advances include Rs. 2,163,393 (Previous Year Rs. 2,163,393) recoverable from M/s Adkins Services Inc., (Adkins), a drilling contractor, against which provision has been made. The Contract with Adkins was terminated by the Company on the ground of non-performance and continued breach of contract. The Company in addition to the above amount has made a claim of Rs. 198,054,000 along with interest at a fixed rate for damages on account of delay in providing the services by the said contractor.
The contractor had filed a counter claim of Rs 278,100,000 (Previous Year Rs 278,100,000) excluding interest against the Company for loss of profit, damages etc. which the Company disputes. The contractor had also further claimed interest with retrospective effect at a fixed rate till the date of realization of its claim along with cost incurred on litigation. The Company had filed an application before Hon'ble High Court at Calcutta for the appointment of presiding arbitrator for the arbitral proceedings. The matter is subjudice before the arbitration panel and necessary adjustments, if any, will be made in the financial statements once the arbitration proceedings are complete.
3. The company entered into an Exploration & Production Contract with Government of India ("GOI"), Ministry of Petroleum & Natural Gas in the year 2001, pursuant to which, a contract (PSC) was signed between GOI and the company to carry out CBM operations in the contract area. In terms of the said contract, the company was required to pay a signature bonus of US $ 0.3 Million to GOI on signing of the PSC in 2001 and the amount of Rs. 10 million already paid by it to Coal India Limited in 1994 was to be adjusted against such amount. After signing of the PSC GOI, (Ministry of
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 18
NOTES TO ACCOUNTS (CONTD.)
Petroleum & Natural Gas) on the basis of the exchange rate applicable on the date of the contract, has worked out the signature bonus as Rs. 14.1 million and claimed the balance amount of Rs. 4.1 million after adjusting the amount of Rs. 10 million, which has been opposed by the company. In the opinion of the management and based on legal advise obtained, no further amount is payable in this regard as in their opinion the prevailing rate on the date of payment of such amount (Rs 10 million) and not the rate prevailing on the date of the contract was applicable. This dispute has been referred to arbitration pursuant to the terms & conditions of the said contract.
This dispute has been referred to arbitration pursuant to the terms & conditions of the said contract and company filed a claim for refund of Rs. 6,27,400 along with fixed interest of 21% from 27th January, 1994. GOI filed a counterclaim of above mentioned amount of Rs.4.1 million along with interest at the rate of 21% from May 31, 2001. The matter is subjudice before the arbitration panel and necessary adjustments, if any, will be made in the financial statements once the arbitration proceedings are complete.
4. One of the contractor, Goel Construction (India) Limited, has filed a frivolous suit against the company claiming a sum of Rs. 30,262,764 towards unpaid amount under the contract and damages for unlawful termination of contract for construction of office building at Asansol. The Company has disputed the claim of the contractor and has initiated criminal proceeding against the contractor and its employees, for breach of trust and for putting the life of employees of the company at risk by undertaking faulty electrical wiring.
Rather than agreeing to the prayer of Contractor for stay on construction and engaging third party contractor, the Court has refused his pray and had just granted status quo over machinery and material belonging to the Contractor. This does not adversely affect the company in any manner. The court has also referred the matter to the Arbitration (as per terms of the contract) and the parties are in the process of appointing an arbitrator since the matter is pending before High Court. The Company is of the strong opinion that the claim of the said contractor is untenable and no amount is payable under the suit.
5. Capital Commitments (Net of Advances):
| Sl. No. | Particulars | Year Ended 31 March 2010 Rs. | Year Ended 31 March 2009 Rs. |
| (a) | Purchase of Land | 7,487,295 | 7,645,150 |
| (b) | Other Fixed Assets/Capital Work in Progress/Capital Inventory | 192,064,737 | 582,908,723 |
6. Secured Term Loans
a) Secured term loans, other than mentioned in (c) below, taken are secured by:-
i) First mortgage and charge over all the immovable properties and assets of the project, both present and future.
ii) First charge by way of hypothecation on all the movables (including movable plant and machinery, machineries, spares, tools and accessories and other current assets) of the project, both present and future.
iii) First charge/assignment and/creation of security interest on (i) all the rights, title, interest, benefits, claims and demands whatsoever of the Company in the project documents, any letter of credit, guarantee or performance bond that may be provided by any party to any project document in favour of the Company, all as amended, varied or supplemented from
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 18
NOTES TO ACCOUNTS (CONTD.)
time to time; (ii) all the rights, title, interest, benefits, claims and demands whatsoever of the Company in or under the authorization.
iv) First charge on all Company's bank account in relation to the project including, without limitation, the project capex account and each of the other accounts required to be created by the Company under any project document or contract.
v) First charge and or creation of security interest on the trust and retention account ("TRA") established by the Company for the revenue generated from the project
The aforesaid mortgage and charge shall rank pari passu with mortgages and charges created/to be created in favour of the participating institutions/ banks to the project.
Amount repayable for term loan within one year Rs 19,400,000 (Previous Year Rs Nil)
b) The Company has during the year converted loans amounting to Rs 397,496,430 (Previous year Rs Nil) from two banks to Foreign Currency Non-Resident Borrowing. The Loan would be again convertible to Rupee loan at the end of six months if the loan agreement is not renewed. The other terms and conditions of the loan including security and repayments terms for the foreign currency loan remain the same as Rupee Loan.
The Company has also taken forward contract cover on these equivalents to the amount of loan in USD.
Amount repayable within one year is Rs. 3,700,000 (Previous Year Rs. Nil).
c) Term Loan of Rs 1,331,245 (Previous Year Rs. 2,541,870) secured by way of hypothecation of vehicle. Amount repayable within one year Rs 1,331,245 (Previous Year Rs1,210,625)
7. The Company has allocated borrowing cost of Rs.58,822,505 (Previous Year Rs79,242,281) to Capital Work in Progress being directly attributable to the acquisition or construction of qualifying assets. The balance borrowing cost of Rs.243,162,378 (Previous Year Rs. 83,184,190 ) has been charged to Profit and Loss Account.
8. The Company had filed Draft Red Herring Prospectus ("DRHP") for Initial Public Offer ("IPO") in December 2008 and received final observations from SEBI on 7 October 2009. The company is in the process of complying with these observations and plans to proceed with IPO at an appropriate time in future, keeping in view market conditions and other factors.
9. Employee Benefit Obligations
i. Defined Contribution Plans
Provident Fund
The State administered Provident Fund is a defined contribution scheme, whereby the Company deposits an amount determined as a fixed percentage of basic pay to the fund every month.
| Particulars | Year Ended March 31, 2010 Rs. | Year Ended March 31, 2009 Rs. |
| Employer's Contribution to Provident Fund | 5,663,274 | 3,308,634 |
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 18
NOTES TO ACCOUNTS (CONTD.)
Out of the above Rs.2,340,072 (Previous Year Rs. 1,295,825) has been transferred to Capital Work In Progress under the head Salaries, Wages and Bonus
ii. Defined Benefit Plan
Gratuity
Gratuity is computed as half-month's salary, for every completed year of service and is payable on retirement/termination. The Company makes provision of such gratuity liability in the books of accounts on the basis of actuarial valuation.
Superannuation Plan
The Superannuation (pension) plan for the Company is a defined benefit scheme where monthly contribution at the rate of 15% of salary is payable. These contributions will accumulate at the rate of interest prevailing at the time of retirement/resignation/termination. At the time of retirement, termination or separation of employee, accumulated contribution will be utilized to buy pension annuity from an insurance Company. The Company makes provision of such pension liability in the books of accounts on the basis of actuarial valuation.
As per actuarial valuation as on 31st March, 2010 and recognized in the financial statements in respect of Employee Benefit Schemes
Components of Employer Expense recognized:
(Rs)
| Particulars | Gratuity | Superannuation | ||
|
| Unfunded | Unfunded | ||
|
| March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 |
|
|
|
|
|
|
| Current Service Cost | 1,258,831 | 832,100 | 2,430,000 | 1,255,500 |
| Interest Cost | 161,104 | 152,186 | 266,697 | 141,707 |
| Net Actuarial (Gains) /Loss | 1,083,405 | (940,333) | 97,199 | 47,082 |
|
|
|
|
|
|
| Total | 2,503,340 | 43,953 | 2,793,896 | 1,444,289 |
Out of the above Rs.2,876,946 (Previous Year Rs720,528.) has been transferred to Capital Work in Progress (CWIP) under the head Salaries, Wages and Bonus
Net Asset /(Liability) recognized in the Balance Sheet as on March 31, 2010
(Rs)
| Particulars | Gratuity | Superannuation | ||
|
| Unfunded | Unfunded | ||
|
| March 31, 2010 | March 31, 2009 | March 31, 2010 | March 31, 2009 |
| Present Value of defined benefit obligation as at end of the year
|
4,468,493 |
2,062,460 |
6,127,619 |
3,333,723 |
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 18
NOTES TO ACCOUNTS (CONTD.)
Change in Defined Benefit Obligation during the year ended 31st March, 2010
Rs.
| Particulars | Gratuity | Superannuation | ||||
|
| Unfunded | Unfunded | ||||
|
| March 31, 2010 | March 31, 2009 | March 31, 2008 | March 31, 2010 |
March 31, 2009 |
March 31, 2008 |
|
Present Value of defined benefit obligation as at beginning of the year | 2,062,460 | 2,039,800 | 596,202 | 3,333,723 | 1,889,434 | 1,176,253 |
| Current Service cost | 1,258,831 | 832,100 | 760,929 | 2,430,000 | 1,255,500 | 1,218,328 |
| Interest Cost | 161,104 | 152,186 | 40,992 | 266,697 | 141,707 | 76,694 |
| Actuarial (Gains)/Loss | 1,083,405 | (940,333) | 869,560 | 97,199 | 47,082 | (33,923) |
| Benefits Paid | (97,307) | (21,293) | (227,883) | - | - | (547,918) |
| Present Value of defined benefit obligation as at end of the year | 4,468,493 | 2,062,460 | 2,039,800 | 6,127,619 | 3,333,723 | 1,889,434 |
| Actuarial Assumptions | March 31, 2010 |
March 31, 2009 | March 31, 2010 |
March 31, 2009 |
| Mortality Table | LICI -1994-1996 | LICI -1994-1996 | LICI -1994-1996 | LICI -1994-1996 |
| Discount Rate | 8.00% | 7.50% | 8.00% | 7.50% |
| Inflation Rate | 5.00% | 5.00% | 5.00% | 5.00% |
The Company does not have a Gratuity Fund/ Superannuation Fund (Plan) and hence the contributions for next financial year have not been disclosed.
The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.
The present value obligation for gratuity and superannuation have been determined based on actuarial valuation using the Projected Unit Credit Method
iii. Other Employee Benefits
Leave Benefit
Leave benefit comprises of leave balances accumulated by employees. The Leave balance is en-cashable for maximum 30 days. Leave balances can be accumulated up to a maximum of 60 days and can be carried forward for a period of three year. The total amount of Rs 6,617,504 (Previous Year Rs 1,147,846) out of which Rs 3,429,639 (previous year Rs. 984,611) has been transferred to Capital Work in Progress under the head Salaries, Wages and Bonus.
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 18
NOTES TO ACCOUNTS (CONTD.)
10. Provision for Site Restoration
Provision for site restoration represents the liability that is expected to materialize once production of gas from the wells cease and/or they are capped. Future cash outflow in respect of the above is determinable only on occurrence of uncertain future events.
(Rs.)
|
| Year Ended March 31, 2010 | Year Ended March 31, 2009 |
| Balance at beginning of the year | 3,645,225 | 2,501,625 |
| Provision made during the year | 1,643,925 | 1,143,600 |
| Balance at the end of the year | 5,289,150 | 3,645,225 |
11. During the year the Company has allotted 3,600,000 shares of face value of Rs. 10 each to one of the promoter group Company, YKM Holdings International Limited at a premium of Rs. 597.42 per share. The said preferential allotment was made in accordance with the provisions of the Companies Act, 1956 and Unlisted Public Companies (preferential allotment) Rules, 2003.
12. Fixed Deposits includes Rs. 947,000 (Previous Year Rs. 28,747,500) as Margin money against letter of credit issued by the banks on behalf of the Company.
13. During the year the Company has changed the method of computation of depreciation on all fixed assets from Written Down Value Method (WDV) to straight Line Method (SLM) as the Company believes that SLM method more fairly represents the pattern of actual wear and tear of those assets. In accordance with the provisions of Accounting Standard 6 - 'Depreciation Accounting', the Company has recomputed the depreciation on all assets from the date of their commissioning and has reversed depreciation of Rs. 61,429,319 for the earlier years till March 31, 2009 in the current year. Further, had the depreciation been calculated on WDV method instead of SLM method adopted in the current year, the charge for depreciation (excluding the opening impact stated above) would have been higher by Rs. 59,509,101. Consequently, the loss for the year & accumulated loss as at March 31, 2010 are lower by Rs. 120,938,421 and the net block higher by same amount.
14. Investments:
| Current Investments(unquoted) | Year Ended March 31, 2010 | Year Ended March 31, 2009 |
| Units in Mutual Funds | 982,701,448 | - |
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 18
NOTES TO ACCOUNTS (CONTD.)
Movement in investments from during the year is given below:-
| Scheme | No. of units at beginning of the year | Opening value (Rs.) | No. of Units purchased during the year | No. of Units sold during the year | No. of Units in hand at year end | Cost of Units in hand year end at lower of cost or market value (Rs.) |
| Birla Cash Plus Plan | - | - | 1,72,35,198 | 1,72,35,198 | - | - |
| HDFC Liquid Fund | - | - | 1,10,00,676 | 1,10,00,676 | - | - |
| Reliance Liquidity Fund
| - | - | 2,26,01,730 | 2,26,01,730 | - | - |
| Reliance Liquid Fund
| - | - | 3,66,11,261 | 3,66,11,261 | - | - |
| ICICI Liquid Plan
| - | - | 37,31,092 | 37,31,092 | - | - |
| Templeton India STIP
| - | - | 1,48,397 | 1,48,397 | - | - |
| Birla Sun life Dynamic Bond Fund | - | - | 2,64,01,537 | - | 2,64,01,537 | 40,00,31,023
|
| HDFC HIF STP | - | - | 2,49,57,103 | 2,32,02,411 | 17,54,691 | 3,16,49,026
|
| Reliance Short Term Fund
| - | - | 4,38,32,613 | 4,38,32,613 | - | - |
| Templeton India STIP
| - | - | 3,05,368 | - | 3,05,368 | 55,00,21,399 |
| SBI SHF Ultra Short Term Fund | - | - | 84,479 | - | 84,479 | 10,00,000 |
|
|
|
|
|
|
|
|
15. Employee Stock Option Plan 2008
(a) The Company had implemented GEECL Employee Stock Option Plan ('ESOP Plan') which provides for allotment of up to 500,000 equity shares of Rs. 10/- (before consolidation of shares 5,000,000 equity shares of Re. 1/-) each to eligible employees and non executive directors of the Company. The ESOP Plan is administered by the Remuneration Committee/Compensation Committee of the Board of Directors.
Pursuant to the above scheme, the following options have been granted to eligible employees and non-executive directors:
| Date of grant | No of options granted | Options lapsed till 31.03.2009 | Options lapsed during the year | Option outstanding as at the year end | Exercise price (Rs.) |
| 1st August 2008* | 43,272 | 4,996 | 11,948 | 26,328 | 400 |
| 1st December 2008* | 5,292 | - | - | 5,292 | 400 |
| 1st April 2009 | 8,113 | - | - | 8,113 | 400 |
| 1st August 2009 | 11,450 | - | - | 11,450 | 400 |
| 1st December 2009 | 26,448 | - | - | 26,448 | 600 |
Each Option entitles the employees to one equity share of RS. 10/- each. The Scheme provides for graded vesting of 1/5 of total options granted each year over a period of 5 years from the date of grant.
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 18
NOTES TO ACCOUNTS (CONTD.)
The Options are to be exercised within a maximum period of 9 years from the date of vesting. The Weighted average balance life of options outstanding as on March 31, 2010 is 9.91 (previous year 9.38) Details of movement under the stock option plan for the year ended March 31, 2010 is as under:
|
| Year Ended March 31, 2010 | Year Ended March 31, 2009* |
| Options outstanding at the beginning of the year Options granted during the year Options forfeited during the year Options lapsed during the year Options exercised during the year Options outstanding at the end of the year
| 43, 568 46,011 - 11,948 - 77,631 | - 485,578 - 49,963 - 435,615 |
*Consequent upon the change in the face value of Equity Shares of the Company from Rs. 1 each to Rs. 10 each, effected on 3 July 2009, the exercise price was also adjusted by the same ratio to Rs. 400. On 3 July 2009 the total outstanding options were 402,038 (total grant of 485,578 less options lapsed of 83,540 at Re 1 each) which were accordingly consolidated to 40,210 options (due to rounding off to each employee). Hence the number of options disclosed above for the current year and previous year has been restated.
In accordance with "Guidance note on Accounting for Employee Share based Payments" issued by the Institute of Chartered Accountants of India an amount of Rs.906,575 (Previous year Rs. 695,504) has been recognized as an expense in staff welfare (Schedule 14) and corresponding liability has been disclosed as Stock Option outstanding account (Schedule 2)
(b) The impact on the Loss of the Company for the year ended March 31, 2010 and the basic and diluted earnings per share had the fair value method of accounting for stock is set out below:
Rs.)
|
| Year Ended March 31, 2010 | Year Ended March 31, 2009 |
| Loss attributable to equity shares holders
| 331,391,269 | 318,650,345 |
| Less: Employee Stock Compensation Expenses as per Intrinsic Value Method | 906,575 | 695,054 |
| Add: Employee Stock Compensation Expenses as per Fair Value Method | 4,594,347 | 3,371,104 |
| Loss after tax recomputed for recognition for Employee stock compensation expenses under fair value method (b) | 335,079,041 | 321,326,395 |
| Loss Per Share based as per (a) above Basic and Diluted | 5.80 | 5.85 |
| Loss Per Share based as per (b) above Basic and Diluted | 5.86 | 5.90 |
The fair value of options has been computed in accordance with the Black Scholes Method.
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 18
NOTES TO ACCOUNTS (CONTD.)
16. Lease Agreement
a. Operating Lease
The Company's leasing arrangements are in respect of operating leases for premises and equipments. This leasing arrangement ranges from 12 months to 3 years and are renewable on mutual consent of parties as per mutually agreeable terms.
Lease rental accrued during the year for the premises, equipments and site office/sore yard acquired amounting to Rs 6,917,015 (Previous Year Rs. 7,170,622) has been charged to the Profit and Loss Account and balance of Rs.1,043,218 (Previous Year Rs. 1,814,018) debited to Capital Work in Progress.
b. Finance Lease
The Company had taken a building on finance lease (99 years), the net carrying amount of which is Rs10,296,375 (Previous Year: Rs10,838,289). Entire consideration for the building was paid during year ended March 31, 2006 and there are no obligations in respect of future lease rentals payable.
17. Mining Lease
The Company has received Grant of Petroleum Mining Lease under Rule 5(1) (ii) of the PNG Rules and Oil Fields (Regulation and Development) Act, 1948 for mining of CBM in the block on September 4, 2008 from the Government of West Bengal. Period of lease is 20 years from the date of lease or as agreed in the lease deed to be executed. Formal mining lease is yet to be executed. The company has submitted draft agreement to the West Bengal Government and waiting for necessary clearance.
18. There are no Micro and Small Enterprises, to whom the Company owes dues, as at March 31, 2010.
19. Auditors' Remuneration (Excluding Service Tax):
|
Particulars
| Year ended March 31, 2010 Rs. | Year ended March 31, 2009 Rs. |
|
|
|
|
| Audit Fees- Statutory
| 1,850,000 | 1,250,000 |
| Others | 3,1500,000 | 6,515,000 |
| Out of pocket expenses | 151,608 | - |
| Total | 5,151,608 | 77,65,000 |
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 18
NOTES TO ACCOUNTS (CONTD.)
20. CIF Value of Imports & Expenditure in Foreign Currency
|
|
| Year Ended March 31, 2010 Rs | Year ended March 31, 2009 Rs |
| (i) | C.I.F. Value of Imports: |
|
|
|
| Stores and Chemicals | 17,031,463 | 94,223,867 |
|
| Capital Goods | 130,203,257 | 86,119,615 |
|
|
|
|
|
|
|
|
|
|
| (ii) | Expenditure in Foreign Currency: (including expenses transferred to CWIP ) |
|
|
|
| Fracturing Charges | 62,594,484 | 16,041,836 |
|
| Drilling Charges Cementing Charges Professional Charges | 42,399,655 57,658,524 9,625,958 | 38,572,409 109,044,028 29,122,243 |
|
| Salaries, Wages and Bonus | 2,626,564 | 3,843,499 |
|
| Other Expenses | 13,260,788 | 5,750,662 |
21. a) Loss per Share ( Basic/Diluted)
|
| Year Ended March 31, 2010 | Year Ended March 31, 2009 |
| i) Loss attributable to Equity Share Holders (Rs.) | 331,391,269 | 318,650,345 |
| ii) Weighted average number of Shares outstanding during the year (Nos) | 57,144,690 | 54,461,950 |
| iii) Face value of shares (Refer Note b below) | 10 | 10 |
| iv) Basic/Diluted Loss Per Share (a/b) (Rs.) | 5.80 | 5.85 |
The Potential equity shares of the company are not dilutive and hence Diluted Loss Per share has not been computed.
b) The Company has during the year consolidated its equity shares from face value of Re. 1 to Rs. 10 each. The Consolidation was approved by the shareholders in Annual General meeting held on July 3, 2009. Accordingly the number of shares disclosed and used for computation of EPS for current year and previous year has been restated to reflect the consolidated face value of shares.
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 18
NOTES TO ACCOUNTS (CONTD.)
22. Managerial Remuneration paid/payable
|
| Year Ended March 31, 2010 Rs | Year Ended March 31, 2009 Rs |
| Amount paid/payable to: |
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| Whole time Director: |
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| i) Salary | 21,600,000 | 8,640,000 |
| ii) Contribution to Funds | 4,874,488 | 1,459,814 |
| iii) Other benefits | 6,166,199 | 669,376 |
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| Non Whole time Director: |
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| i) Salary | 3,772,504 | 3,843,499 |
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| ii) Directors' Fees (paid to non executive directors) | 340,000 | 560,000 |
The retirements benefits, provided based on actuarial valuation, are payable at the time of retirement and included in above disclosure even though exceeding Central Government Approval.
Central Government vide its letter no. A46555611-CL.VII dated January 13, 2010 has approved the remuneration of Mr. Y.K. Modi from October 1, 2008 to December 19, 2009. Accordingly a sum of Rs.5,094,000 was paid to the Whole time. On recommendation of remuneration committee and Board of Directors, shareholders in their meeting on December 1, 2009 has re-appointed Mr. Modi as Chairman and Managing Director w.e.f. December 20, 2009 for a further period of 5 years on the same terms and conditions as approved earlier by Central Government. As per the provisions of Schedule XIII of the Companies Act, 1956, Company has filed necessary application with Central Government for approval of the remuneration amounting to Rs 4,122,608 (excluding retirement benefits) paid in excess of the limits prescribed under Schedule XIII.
23. RELATED PARTY DISCLOSURES - AS 18
(a) Names of the related parties and nature of relationship:
Shareholders having significant influence:
YKM Holdings Pvt Ltd
CBM Investments Limited
Key Management Personnel:
Mr. Y K Modi, Chairman & CEO
Relative of Key Management Personnel
Mr Prashant Modi, President & COO
(b) Entities Controlled/Influenced by Related Parties (in (a) above)
YKM Holdings International Ltd
Yogendra Kr.Modi (HUF)
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 18
NOTES TO ACCOUNTS (CONTD.)
(c) Related Party Transactions:
Figures in Rs
| Related Party | Relationship | Outstanding as on March 31, 2010 | Outstanding as on March 31, 2009 | Nature of transaction | Year ended March 31, 2010 | Year ended March 31, 2009 |
| YKM Holdings Pvt. Ltd
| Shareholders having significant influence | 29,07,000 (Receivable) | 19,48,831 (Receivable) | ·; Expenses reimbursed ·; Payment for Services rendered ·; Lease rental paid ·; Advance rent ·; Security deposit ·; Loan taken ·; Loan repaid ·; Interest on Loan
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6,412,848 470,700 470,700 7,000,000 7,000,000 164,629 |
78,311
206,737 4,334,148 - - - -
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| YKM Holdings International Limited | Entities Controlled/ influenced by related parties | - | - | ·; Share Capital Issued (Refer Note 11 above) | 2,186,712,000 | - |
| Yogendra Kr. Modi (HUF)
| Entities Controlled/ influenced by related parties | - | - | ·; Loan taken ·; Loan Repaid ·; Interest on Loan | 2,000,000 2,000,000 22,419 | - - - |
| Mr Y K Modi | Key Management Personnel | - | 665,995 (payable) | ·; Directors Remuneration ·; Post Retirement benefits
| 23,224,404
9,416,283 | 9,297,154
1,493,010
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| Mr. Prashant Modi | Relative of Key Management Personnel | 347,885 (payable) | 366,295 (payable) | ·; Salaries and allowances ·; Post Retirement benefits
| 11,201,286
2,882,085 | 4,091,846
776,548 |
24. The Company is solely engaged in exploration and production of Coal Bed Methane gas and has commenced commercial production. There are no other reportable segments as per AS 17 Segment Reporting as notified under section 211(3C) of the Companies Act, 1956.
25. Based on the principle of prudence, net deferred tax assets arising at the end of the year has not been recognised in line with the requirement of AS 22 "Accounting for Taxes on Income'" as notified under section 211(3C) of the Companies Act, 1956.
26. Additional Information pursuant to requirements of Part II of Schedule VI of the Companies Act, 1956 and other disclosures
a) Licensed Capacity - Not applicable*
b) Installed Capacity - Not applicable*
* On account of commercial considerations, data with respect to interests in proved reserves and proved developed reserves have not been disclosed in the financial statements.
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 18
NOTES TO ACCOUNTS (CONTD.)
c) Actual Production (including CNG)
(SCM)
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| Year Ended March 31, 2010 | Year Ended March 31, 2009 |
| Opening Stock | - | - |
| Production during Year | 3,84,02,150 | 1,97,79,789 |
| Sales during the year | 55,54,914 | 15,56,135 |
| Internal consumption during the year | 28,42,060 | 14,73,675 |
| Flaring during the year | 3,00,05,176 | 1,67,49,979 |
| Closing Stock | - | - |
27. Particulars in respect of sales
| Product | Year Ended March 31, 2010 | Year Ended March 31, 2009 | ||
| SCM | Amount (Rs.) | SCM | Amount (Rs.) | |
| Coal Bed Methane | 51,77,005 | 10,97,33,139 | 14,81,544 | 3,07,52,571 |
| Compressed Natural Gas | 3,77,909 | 76,05,297 | 74,591 | 14,37,020 |
| Total | 55,54,914 | 11,73,38,436 | 15,56,135 | 3,21,89,591 |
28. Value of imported and indigenous stores and spares consumed
(Debited to Profit & Loss Account and CWIP)
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| Year Ended March 31, 2010 | Year Ended March 31, 2009 | ||
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| Percentage | Rs | Percentage | Rs |
| Stores and Spares Consumption | Imported | 47 | 54,658,401 | 62 | 102,190,434 |
| Indigenous | 53 | 62,875,570 | 38 | 63,913,388 | |
GREAT EASTERN ENERGY CORPORATION LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
SCHEDULE 18
NOTES TO ACCOUNTS (CONTD.)
29. The company uses forward contracts to mitigate its risks associated with foreign currency fluctuations relating to firm commitments or highly probable forecast transactions. The Company does not enter into any forward contracts which are intended for trading or speculative purposes. The details of forward contracts outstanding at the year end is as follows:
| Currency | Number of Contracts | Buy Amount | Indian Rupees equivalent |
| USD | 2 | 8,805,858 | 397,496,430 |
30. Figures of the previous year have been regrouped / rearranged wherever considered necessary.
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| Firm Registration No. 012754N |
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| Yogendra Kr. Modi |
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| Chairman & Chief Executive Officer | Director |
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| V. Nijhawan |
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| Partner |
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| Prashant Modi |
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| Membership Number F-87228 |
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| Place: Gurgaon |
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| Date: July 5, 2010 |
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