Wind World

WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note No.
16.2
As at 31st March, 2015
(Fig in Rs.)
30,906,631
15,926,426
195,646,429 242,479,486
119,402,849 110,058,893 710,565,662 940,027,404
1,182,506,890
- 8,505,007 244,563,004 4,316,024 16,978,107 141,819,283 416,181,424
Particulars
As at 31st March, 2016
(Fig in Rs.)
Closing work-in-progress comprises of following broad heads.
(a) Semi-finished Goods
Blades
34,277,837
Tower Sections
Others (includes Power controller, Rotor Head, Disk Rotor, PCB, Cable kit and others)
260,513,647
294,791,484
(b) Project work in progress
Foundation
149,638,551
Wind Energy Convertors including Site Material
179,747,029
Civil & Electrical Cost
2,705,473,657
3,034,859,237
T OT A L
3,329,650,721
Finished goods comprises of following broad heads.
Nacelle
-
Rotor Head
5,759,528
Blade
278,790,118
Power Cabinet
26,156,088
Control Cabinet
677,258
Concrete Tower Segments
145,340,097
T OT A L
456,723,088
16.3
16.4 The inventory includes the cost of materials and expenses amounting to Rs.234,729,272. This expenditure has been made for higher capacity of machines in Project H, at village Hanumanhatti in the state of Karnataka. We have approval for installation of around 230 MW wind farm’s and executed only 50.40 MW wind farm’s till date. The project is ongoing for the past 4 to 5 years but still has not completed. Management expects that the project will be completed in near future, so the company is carrying this amount of Rs.234,729,272 in Project work in progress in the financial statement. This amount represents various expenses incurred by the company on Civil, Electrical and other activities, including Land costs, survey fees, Government charges, etc for switching station and 220 KV Transmission line. The project is already executed for 63 E53 machines and relevant cost was already written off.
During the financial year 2015-16, due to the limited working capital, the management preferred to defer the completion of project to the year 2017-18.
The Company is confident of monetizing the said project expenditure either by completing the project and setting up wind farms by identifying customers. Alternatively the Company is also evaluating offers received for transfer of this project on going concern basis to third parties.
In view of the above the value of Rs. 234,729,272 is considered as good and recoverable.
16.5 During the financial year, the Company has inventorised the self generated development rights of Nil MW (Previous Year - NIL MW) at a total cost of Rs.Nil (Previous Year - NIL). The cost of self generated development rights includes all direct site expenses incurred for developing the rights and also includes overheads allocated on the basis of MW's inventorised.
TRADE RECEIVABLES ( Unsecured, considered good )
Trade receivables outstanding for a period exceeding six months from the date they were due for payment
10,390,012,930
Other Trade receivables
3,983,762,608
TOTAL
14,373,775,538
Trade Receivables includes amounts due from (Refer No 40):
Private Companies in which some of the directors of the Company are directors / members
-
Partnership Firms in which some of the directors of the Company are partners
-
17
17.1
7,967,959,537
6,728,753,219 14,696,712,756
- -
Financial Report 2015-16
51


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note No.
18
As at 31st March, 2015
(Fig in Rs.)
1,240,656
436,053,143 437,293,799
246,098,265 -
6,436,572 252,534,837
689,828,636
Particulars
As at 31st March, 2016
(Fig in Rs.)
Cash and bank balances
A) Cash and Cash Equivalents (As per AS - 3 Cash Flow Statements)
(a) Cash on hand
529,116
(b) Balances with Banks
( i ) Current Account
49,335,544
Total - Cash and Cash Equivalents
49,864,660
B) Other Bank Balances
( i ) Deposits with original maturity of more than 3 months but less than 12 months
74,796,447
( ii ) Deposits with original maturity of more than 12 months
-
( iii ) Margin money account
8,895,763
Total - Other Bank Balances
83,692,210
T OT A L
133,556,870
18.1 Fixed Deposits includes Rs.7,45,13,451/- (Previous Year- Rs.125,232,685 ) pledged in favour of banks for Acceptances given and Bank Guarantees issued by the banks, Rs.NIL (Previous Year - Rs.11,480,524) under lien with bank for Debt Servicing (DSRA) and Rs.NIL (Previous Year - Rs.23,572,712) under lien with bank for Security deposits received from Employees. Rs.2,00,000/- (Previous Year - Rs.NIL) for Security deposits with Indian Railways for underline cabling work. Rs. 82,996/- (Previous Year - Rs.NIL) for Margin money against existing charge.
18.2 Margin money amounting to Rs.8,895,763 (Previous Year Rs.6,436,572) represents margin placed with banks for discounting of bills under Letters of Credit and Sales Bill discounting.
SHORT-TERM LOANS AND ADVANCES (Unsecured, considered good)
(a) Loans and advances to related parties
Advances and Loans to Related parties
482,703,763
482,703,763
(b) Security Deposits
Deposits with Others
13,447,602
Deposits with Customs & Excise Authorities
20,884,375
Deposits with State Regulatory Authorities for Commissioning of WEC's
172,663,708
206,995,685
(c) Others
Advances to Suppliers
1,792,072,987
Other Receivables
4,110,000
1,796,182,987
19
3,305,881,194 3,305,881,194
13,340,668
20,884,375 139,463,708 173,688,751
1,049,207,376 - 1,049,207,376
52
Financial Report 2015-16


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note Particulars No.
Advances for Purchase of Land for installation and sale of WEC
Balances with Government Authorities
(i) Service Tax credit receivable
(ii) Sales Tax/VAT/WCT credit receivable
Loans and Advances to Employees
Receivable against Derivatives Contracts
Prepaid Expenses
T OT A L
20 OTHER CURRENT ASSETS
As at 31st March, 2016
(Fig in Rs.)
905,227,924
354,319,654
111,882,457
43,453,624
3,311,413
104,540,159
3,318,918,218 4,008,617,666
22,827,183 57,733,500
5,651,022 - 166,158,623
252,370,328
9,705,915,724 95,223,529 1,580,471,010 - 379,382,881
2,763,460,564 3,428,429
6,057,560 14,073,095 10,076,864 47,855,407
14,605,945,063
As at 31st March, 2015
(Fig in Rs.) 735,453,782
328,337,135 94,401,814 24,179,327
458,305
127,779,352 2,359,817,091 5,839,387,036
26,291,036 66,726,000
2,932,260 94,688,934 166,158,623
356,796,853
5,455,926,950 2,716,704,000 - 83,781,661 425,883,676
2,431,060,120 1,681,916
2,230,170 83,247,000 17,484,756
(32,503,476) 11,185,496,773
(a)
(b)
Unbilled Revenue
Unbilled units of Electricity generated
Unbilled units of Renewable Energy Certificates
Accrued Interest
Interest Accrued on Deposits with Banks Interest Accrued on Investments
Interest Accrued on Loans and Advances
Note :- Interest accrued on debenture of `94,688,934/- on Wind World Wind Farms (Krishna) Limited and Wind World Wind farms ( Sai ) Pvt. Ltd. has been capitalized to the fresh debenture issued.
T OT A L
21 I. Revenue from Operations (NET) (a) Sale of Products
Wind Energy Convertors (WEC) and Components / Services Wind Energy Convertors (WEC) and Components - Trading Trading - Others
Transformer - Sub Station - Trading
Sale of Power
(b) Sale of Services
Operation and Maintenance Income
Management Fees - Carbon Credit
(c) Other Operating Revenue
Sale of Carbon Credits
Sale of Renewable Energy Certificate Units Scrap Sales
Freight Recovery
T O T A L
Financial Report 2015-16 53


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note No.
21.1
For the year ended 31st March, 2015
(Fig in Rs.)
5,154,971,603
2,716,704,000 83,781,661 300,955,347 8,256,412,611 - 425,883,676 425,883,676 8,682,296,287
Particulars
For the year ended 31st March, 2016
(Fig in Rs.)
Sale of Products comprises of:
(a) Manufactured goods in respect of :
Wind Energy Convertors (WEC) and Components / Services
9,092,270,894
(b) Traded goods in respect of Wind Energy Convertors (WEC) and Components
Wind Energy Convertors (WEC) and Components - Trading
95,223,529
Transformers for Sub Station
-
Transformers, Steel Sections & DP Structure
613,644,830
Sub Total (A)
9,801,139,253
(c) Trading - Others
1,580,471,010
(d) Sale of Power
379,382,881
Sub Total (B)
1,959,853,891
T OT A L ( A + B )
11,760,993,144
21.2
22
"The Company is having 22.80 MW Wind Farm Project at Kapatgudda, Karnataka, which is registered with UNFCCC as CER Project.
(a) There is no CER inventory lying in the books as at 31st March, 2016 and 31st March, 2015 against the above project.
(b) 104,882 nos.of CERs (Previous Year - 56,052 nos.) are under certification as at 31st March, 2016.
(c) During the year the Company has expensed a Depreciation amount of Rs.53,694,413 ( Previous Year Rs.5,43,61,783) against the Emission Reduction equipment. "
II. OTHER INCOME
(a) Interest Income
Interest on Deposits with Banks
8,394,266
Interest on Loans and Advances / Sub debt to related parties
-
Interest on Debentures
-
Interest Others
7,568,257
15,962,523
(b) Other Non operating Income
Deferred Income from apportionment of Government Grant
-
Sale of other materials
56,162,769
Miscellaneous Income
99,261,993
Infrastructure Charges Recovered
-
Generation Guarantee provision written back
-
Net Gain on Foreign Currency transaction and translation
-
Profit on Sale/Scrapping of Fixed Assets (net)
176,186
Income on sale of items expensed in earlier years
-
Insurance Claims Received
14,548,359
Sundry Balances Written Back (Net)
555,267
170,704,574
T OT A L
186,667,097
15,479,771 86,667,653 53,805,205
132,300 156,084,929
6,396 35,180,633 44,937,372 3,880,500 168,191,810 85,762,969 310,121,827 1,177,280,000 9,536,170 9,590,844 1,844,488,521 2,000,573,450
54
Financial Report 2015-16


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note No.
23
23.1 The above consumption is after adjusting excess and shortages ascertained on physical count.
For the year ended 31st March, 2015
(Fig in Rs.)
3,027,985,601 5,093,277,381 2,905,274,462 5,215,988,520
Particulars
For the year ended 31st March, 2016
(Fig in Rs.)
Cost of Materials Consumed
Opening Stock - Raw Materials (including packing materials)
2,905,274,462
Add : Purchase of Materials (including packing materials)
7,827,145,508
Less : Closing Stock - Raw Materials (including packing materials)
3,633,547,423
T OT A L
7,098,872,547
23.2 Details of consumption of major items of Raw Materials ( including purchased components and packing materials ):
Power Cabinet
266,985,446
222,567,614
Pole Shoe
296,752,806
185,537,718
Ball-Bearing Slew
161,873,016
96,869,044
Enamel Copper Wire
182,001,179
118,369,666
Stator carrier
135,265,317
81,383,426
Concrete Steel
444,029,384
148,570,734
Disc Rotor
136,830,046
79,185,368
Blade adaptor
107,414,449
64,705,671
Rotor Hub
104,973,557
64,527,967
Main Carrier
96,283,540
59,791,794
Others
5,166,463,806
4,094,479,518
T OT A L
7,098,872,547
5,215,988,520
Purchases of Stock-in-Trade
Transformers
260,775,246
Wind Energy Convertors (WEC) and Components - Trading
163,200,000
Trading - Others
1,579,357,190
Steel Sections
346,780,552
Total
2,350,112,988
24
222,004,335 2,689,745,709 - 196,589,306 3,108,339,350
25 Changes in Inventories of Finished Goods Work-in-Progress, Stock-in-Trade and Self generated Development Rights
1,182,506,890 416,181,424 1,301,892,000 5,510,451,940 8,411,032,254
925,484,432
540,379,541 1,301,892,000 5,507,434,845 8,275,190,818
135,841,436
Closing Stock
Semi-finished Goods
3,329,650,721
Finished Goods
456,723,088
Self generated Development Rights
1,301,892,000
Stock-in-Trade
5,525,133,265
10,613,399,074
Opening Stock
Semi-finished Goods
1,182,506,890
Finished Goods
416,181,424
Self generated Development Rights
1,301,892,000
Stock-in-Trade
5,510,451,940
8,411,032,254
Net Changes in Inventories
2,202,366,820
Financial Report 2015-16 55


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note No.
26
For the year ended 31st March, 2015
(Fig in Rs.)
1,901,306,610 140,259,810 579,789,436
2,621,355,856
Particulars
For the year ended 31st March, 2016
(Fig in Rs.)
Employee Benefits Expense
(a) Salaries and Wages
2,000,152,623
(b) Contribution to Provident and other Funds
118,023,021
(c) Staff Welfare Expenses
612,216,870
T OT A L
2,730,392,514
26.1 During the financial year 2014-15, pursuant to RBI Guidelines, the Joint Lenders Forum (JLF) was formed with the IDBI Bank Limited as Lead Lender. The JLF lenders have approved the Enhancement and Restructuring of the Existing Working Capital facility of the Company as per the scheme approved by the JLF which is collectively referred as “Restructuring Scheme”. As part of Restructuring Scheme, the Managerial remuneration to the promoter directors have been reduced by 50% during the previous year.
Finance Costs
(a) Interest Expense
Interest on Cash Credit
643,760,885
Interest on Term Loans
950,990,267
Interest on Acceptances and Buyers Credit
419,385,218
Interest on Delayed Payments
55,437,566
Interest on Bill Discounting
7,603,114
Interest on EPCG Obligation
(220,239,166)
Interest on Finance Lease
26,200
Interest on Derivative Contracts - Swaps
-
Interest on loans and advances from Related parties
-
Interest - Others
10,496,084
1,867,460,168
(b) Other Borrowing Cost
Loan Processing Fees
46,766,831
Bank Guarantee Charges
228,123,049
LC/Buyers Credit Charges
226,838,185
501,728,065
T OT A L
2,369,188,233
27
916,996,015 330,588,035 600,653,616
31,760,103
34,856,829 210,418,285 2,615,339 2,421,961 133,263,520 48,111,926 2,311,685,629
68,972,277 270,135,503 175,531,446 514,639,226
2,826,324,855
56
Financial Report 2015-16


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Note No.
28
Particulars
Other Expenses
Consumption of Stores & Spare parts. Power and fuel
Water Charges
Rent
Repairs to Building
Repairs to Machinery
Repairs and Maintenance - Others
Operation and Maintenance charges
Insurance
Rates and Taxes
Crane Hiring Charges
Trailor Hiring Charges
Testing Charges
Other Manufacturing Expenses
Carbon Credit Expenses
Advertisement Expenses
Postage, Telegrams and Telephones
Bank Charges
Travelling and Conveyance
Printing & Stationery
Freight and Forwarding
Commission / Discount on local sales
Legal & Professional Fees
Bad debts / Advances Written Off
Net Loss on Foreign Currency transaction and translation Dimunition in value of Investments
Liquidated Damages
Power Generation Guarantees
Security Service Charges
Corporate Social Responsibiilty
General Office Expenses
T O T A L
For the year ended 31st March, 2016
(Fig in Rs.)
170,089,490 71,653,333 3,377,663 944,280,543 10,479,711 25,164,208 129,938,276 102,029,550 53,908,079 146,350,761 206,741,451 55,967,601 7,948,544 60,168,968 310,107 1,383,426 43,267,439 4,637,243 105,462,386 16,541,722 117,967,971 2,431,256 323,242,148 2,370 74,143,889 - 17,025 8,557,681 305,308,556 4,558,326 145,133,270 3,141,062,993
For the year ended 31st March, 2015
(Fig in Rs.)
43,688,652 55,299,690 1,969,125 971,716,074 6,255,129 15,322,895 138,574,749 136,585,672 59,309,043 107,124,926 148,454,230 57,646,384 7,217,702 30,782,421 8,532,711 961,107 44,949,355 5,801,943 97,638,061 14,237,106 62,050,864 11,000,000 263,179,891 42,803,538 - 22,854,485 812,972,001 - 280,668,181 8,069,789 114,889,335 3,570,555,059
28.1
28.2
Legal & Professional charges include fees for Audit Rs.5,00,000 (Previous Year Rs.10,00,000), Other Services Rs.NIL (Previous Year Rs.4,54,300) and Out of pocket expenses Rs.NIL (Previous Year Rs.1,31,500) – net of service tax Rs. 72,500 (Previous Year Rs.1,96,005).
In terms of para 46 of AS 11 - The Effects of Changes in Foreign Exchange Rates, the exchange loss amounting to Rs. 54,79,708 (Previous Year gain of Rs.24,417,278) has been adjusted to the cost of Fixed assets during the year.
Financial Report 2015-16 57


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
28.3
29
Electrical work at sites includes Rs.NIL (previous year Rs.71,430) ,road work at sites includes Rs.NIL (previous year Rs.1,86,635) and cost of material consumption includes Rs.NIL (previous year Rs.2,835,554) on account of prior period expenses.
"On August 21, 2007, Enercon GmbH, the majority shareholder of Wind World (India) Limited (‘WWIL’, ‘the Company’), had filed a Company Petition (the petition), before the Principal Bench of the Company Law Board at New Delhi (""the Honourable Board"", ""CLB""), in terms of sections 397 and 398, read together with sections 402 and 403 of the Companies Act, 1956 in the conduct of the affairs of the Company. The Company has been made a Respondent to the said petition along with its Directors, Subsidiaries, Associates and the Indian Shareholders. Hearings in respect of the said petition had taken place and the Honourable Board in its interim order granting interim relief in some matters, had inter-alia, directed that status quo should be maintained with regard to all issues, pending the final outcome in the petition. The Honourable Board had further suggested an amicable settlement of the disputes, including disputes relating to valuation of shareholdings, based on an independent fair valuation to be performed by a valuer appointed by the Honourable Board in consultation with the parties.
On November 03, 2008 the Indian shareholders of the Company filed a Company Petition (“the petition”) before the Principal Bench of the Honourable Board, against the majority shareholder – M/s Enercon GmbH, its Chairman, Managing Director and the Company, in terms of sections 397 and 398, read together with sections 402 and 403 of the Companies Act, 1956 for relief against oppression and mismanagement in the conduct of affairs of the Company.
On December 14, 2012 CLB through its order dismissed the petition filed by Enercon GmbH against the Company, its subsidiaries and Indian shareholders as being not maintainable, and has allowed the petition filed by the Indian Shareholders of the Company against Enercon GmbH, the Company and its foreign directors. The said CLB order has, inter-alia, directed Enercon GmbH to sell its stake in the Company on receipt of fair valuation from an independent valuer; and a status quo in the management of the Company to continue with Mr. Yogesh Mehra as the Managing Director and Mr. Ajay Mehra as the Whole-time Director of the Company. "
Subsequently Enercon Gmbh preferred an appeal to the High Court of Judicature at Bombay (‘High Court’), challenging the said CLB order. The High Court has admitted the appeal and stayed the Order of the CLB dated December 14, 2012 until the final hearing and disposal of the appeal, and directed that the interim orders dated October 29, 2007, January 7, 2008, May 19, 2008 issued by the CLB to continue vide its interim order dated January 18, 2013.
Subsequent to the year end, the High Court vide order dated August 20, 2015 has quashed and set aside the order of the CLB dated December 14, 2012, continued with its interim order passed on January 18, 2013, restored the petition of Enercon GmbH and the Indian Shareholders and remanded the matter back to CLB to be disposed off on merits.
Pending the final outcome of the above mentioned appeal, the statutory financial statements of the Company for the previous financial years ending March 31, 2007, March 31, 2008, March 31, 2009, March 31, 2010, March 31, 2011, March 31, 2012, March 31, 2013, March 31, 2014 and March 31,2015 have not been approved by the Board of Directors of the Company and accordingly have not been adopted by the Members of the Company under the provisions of the Companies Act, 1956. The opening balances as on April 1, 2007, April 1, 2008, April 1, 2009, April 1, 2010, April 1, 2011, April 1, 2012, April 1, 2013, April 1, 2014, April 1,2015 for the purposes of these financial statements have been considered based on the draft financial statements for the years ended March 31, 2007, March 31, 2008, March 31, 2009, March 31, 2010, March 31, 2011 March 31, 2012, March 31, 2013,March 31, 2014 and March 31, 2015 respectively prepared for the purpose of compliance with the requirements of the Income Tax Act, 1961. These financial statements are also prepared by the management for the sole purpose of compliance with the requirement of the Income Tax Act, 1961. Hence these should not be construed as annual financial statements prepared under the provisions of the Companies Act, 2013.
Accordingly the financial statements for the years ended March 31, 2007, March 31, 2008, March 31, 2009, March 31, 2010, March 31, 2011, March 31, 2012, March 31, 2013, March 31, 2014,March 31, 2015 and March 31, 2016 are subject to the consideration of the Board of Directors and adjustments, if any, arising on those financial statements consequent to the disposal of the above mentioned appeal as may be considered by the Board of Directors / Members of the Company.
58
Financial Report 2015-16


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
30
"Mr.Yogesh Mehra was appointed as the Managing Director of the Company at the Extra Ordinary General Meeting of the shareholders of the Company held on March 25, 2004 for a term of 5 years from March 25, 2004 to March 24, 2009. Also at the same meeting Mr. Ajay Mehra was appointed as a whole time Director of the Company. Thereafter, the other Directors including Mr. Ajay Mehra continued to retire by rotation and were reappointed till financial year ended March 31, 2006. Pursuant to the Honourable Board’s interim order dated January 7, 2008 and May 19, 2008 mentioned in note 29 above, no Board meetings / General meetings have been held thereafter, hence the reappointment of Managing Director on retirement and reappointment of other Directors liable to retire by rotation has not taken place in terms of the Companies Act, 1956. However they continue to hold the position of the Managing Director and Whole Time Director respectively and also continue to draw the remuneration as fixed in the meeting of the shareholders held on March 25, 2004. The Honourable Board’s interim Order dated October 29, 2007 inter-alia provided for following: a. Status quo with regard to all issues pending in the proceedings should be maintained and no action in relation to the same shall be taken; b. No change to be brought about in the managerial setup and their responsibilities.
Further the Honourable Board’s final order dated December 14, 2012 also reiterated a status quo in the management of the Company to continue with Mr. Yogesh Mehra as the Managing Director and Mr. Ajay Mehra as the Whole-time Director of the Company.
The Company has also been legally advised to the effect that failure of the Company to re-appoint its Managing Director and retirement of Directors by rotation was a direct consequence of the compliance with the directions in the interim orders passed by the Honourable Board and that the same does not result in non-compliance under the Companies Act, 1956."
31
32 32.1
a
In terms of Honourable Board’s interim orders passed on January 7, 2008 and May 19, 2008 in respect of the above petitions mentioned vide note 30 above, the Company was barred from holding its Annual General meetings and Board meetings and passing of resolution by circulation. Consequently, no such meetings have been held by the Company after those dates. As a result of the above, the annual accounts of the Company for the years ended March 31, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014 and 2015 have not been approved by the Board and members of the company and have not been filed with Registrar of Companies (‘ROC’). Also, the Company has not filed annual returns for the years ended March 31, 2008, 2009, 2010, 2011, 2012, 2013,2014 and 2015 with the ROC. However, the Company has filed its annual unaudited accounts and its annual returns for the year ended March 31, 2007 with the ROC. The Company has been legally advised to the effect that the failure of the Company to file its Annual Returns, Balance sheet and Statement of Profit and Loss for the above mentioned periods was a direct consequence of compliance with Honourable Board’s interim orders. Accordingly it does not result in disqualification of the Directors u/s 274 (1) (g) of the Companies Act, 1956.
Contingent Liabilities and Commitments Performance Guarantees:
Absolute power guarantees:
The Company has discontinued giving absolute power guarantees subsequent to 2006-07. The management of the Company has reviewed liability for such commitments during the year under review and written back an amount of Rs.194,672,245 (Previous Year Rs. Nil) in view of there being no claim from the underlying parties since last more than 3 years and it being time barred by way of limitation and hence same is written back.
The provision for Generation shortfall as at March 31, 2016 and 2015 was as under:
Particulars
As at 31st March, 2016
(Fig in Rs.)
Opening Balance
114,015,279
Add: Additions during the year
20,321,725
Less: Utilization during the year
Less: Reversal during the year
23,310,923
Closing Balance
111,026,081
As at 31st March, 2015
(Fig in Rs.) 295,949,735 12,737,789 - 194,672,245 114,015,279
b
"The Company has entered into Generation Guarantee Agreements dated April 29, 2004 with Power Finance Corporation (‘PFC’) who has leased WECs to the Company’s subsidiaries viz: Wind World Wind Farms (Rajasthan) Pvt. Limited (WWWRPL) and Wind World Wind Farms (Jaisalmer) Private Limited (WWWJPL). As per these Agreements the Company has guaranteed to PFC a minimum generation of electrical energy at a certain Plant Load Factor. In case any generation shortfall occurs, the Company unconditionally guarantees as principal obligor and not merely as a surety, prompt payment in an amount equivalent to the product of the Generation Shortfall calculated on a cumulative quarterly basis every year independently at the applicable Tariff for the calendar quarter during which the generation shortfall occurs, as reduced by the amount paid for generation shortfall, if any, during the preceding calendar quarters in the same financial year. In terms of the said agreements, the excess, if any on a year-to-year basis has to be returned to the Company at the end of the financial year.
Financial Report 2015-16 59


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
"In pursuance of the above agreements, the shortfall in generation calculated on a quarterly basis as at March 31, 2015, and estimated at Rs. 1,115,752,114 (Previous Year Rs.1,839,343,946) is required to be treated as a deposit to be adjusted against excess generation in the following quarters of the same financial year. Out of the above, in terms of the said agreements, the Company has deposited Rs. 277,565,418 as at March 31, 2015 (Previous Year Rs. 334,204,273) in the trust and retention accounts of WWWRPL and WWWJPL. During the financial year under review, the agreement related to generation guarantee with WWWJPL has been expired on completion of guarantee period of 10 years, hence the entire deposit amount has been received. No provision has been made by the Company for the above mentioned shortfall in generation as according to the Company’s projections, for the entire lease period of 20 years the shortfall in the earlier years would be reversed in the subsequent years in view of substantially low lease rentals during the secondary period of lease.
32.2
Liquidated damages:
The Company has a contractual obligation to complete the commissioning of WECs as per the schedule agreed with the customers. However, there are obligations and performances to be met both by the Customer and the Company in order to invoke the penalty clause for liquidated damages. The customers’ obligations range from timely payments of amounts due as per contracts, securing government approvals on timely basis to availability of grid capacity and so on. Claims for liquidated damages are generally not made by customers in view of the continuing relationship with the customers as the WECs business is being managed by the Company during its 20 years life service span and several add on services are provided to the customers. Accordingly, the financial obligation, if any, on account of such non fulfillment of contractual obligations estimated at Rs.1,278,100,000 (Previous Year Rs.249,758,511) has not been provided for as the same is not considered necessary.
The provision for Liquidated damages as at March 31, 2016 and 2015 was as under:
Particulars
As at 31st March, 2016
(Fig in Rs.)
Opening Balance
31,135,555
Add: Additions during the year
-
Less: Claimed as Penalty from WWIIPL
-
Less: Utilization during the year
22,830,000
Add: Receipt of Penalty from WWIIPL
-
Closing Balance
8,305,555
Guarantees Outstanding
Particulars
As at 31st March, 2016
(Fig in Rs.)
Bank Guarantees given by the Company to third parties
33,900,000
Corporate Guarantees given in respect of loans and other assistances granted by banks & Financial Institutions to Subsidiaries(*)
13,246,087,450
Financial Guarantee given to Banks on behalf of related parties against Bank Guarantee limits obtained by the Subsidiaries
19,680,000
32.3
As at 31st March, 2015
(Fig in Rs.) 24,642,580 1,024,055,531 211,083,530 1,017,562,556 211,083,530 31,135,555
As at 31st March, 2015
(Fig in Rs.) 33,900,000
11,975,599,222 19,680,000
12,143,444 117,681
230,925,484
(*) Outstanding Loan amounts to Rs.13,168,487,450 (Previous year Rs.12,044,176,009)
Claims against the Company not acknowledged as debts in respect of ($):
a) Custom duty demand in respect of import of Epoxy Resin Epotex from Thailand.
12,143,444
b) Central Excise duty demand in respect of failure to submit end use Certificate for import of goods
117,681
c) Demand in respect of Sales Tax / Value Added Tax (excluding Interest) in various states on account of disputed tax rate, input tax disallowed & total order value considered under composition.
321,367,456
32.4
60
Financial Report 2015-16


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
d) Service Tax demands in respect of earlier years including Rs.5,128,659,349 in respect of fresh show cause notice received this year, pending in appeals (including penalty of Rs.1,368,188,418 (Previous Year Rs.1,368,188,418), but excluding Interest) for alleged undervaluation of output services, while providing taxable services in relation to erection, commissioning & installation of WEC's. (Duty paid under protest is Rs.NIL (Previous Year Rs.NIL)
6,952,910,573
e) Delayed commissioning and generation shortfall on account of WTG's sold by the Company (Counter claim by the company Rs.256,332,171 (Previous year Rs. 256,332,171)) excluding Interest.
184,920,879
g) Miscellaneous claims in respect of royalty in respect of excavation of murum and other claims.
9,519,066
h) Show cause notices in respect of WEC Tower Flanges under Custom Tariff Heading
50,669,420
i) Unreconciled liability with respect to Suppliers / Customer
-
The above amounts includes interest only to the extent specified in the demand order.
Duty payable under EPCG Scheme
279,408,125
Land related Legal Cases ($)
73,950,925
1,824,251,224
335,337,117
9,519,066 50,669,420 57,448,386
32.5 220,925,688 32.6 73,950,925
32.7
Capital Commitments
Estimated amount of Contracts to be executed on capital account and not provided for (net of advances)
172,690,185
Royalty Provision write back (Refer Note 36A) ($)
1,896,592,890
Enercon GmbH liability written back in respect of supply of material and components (Refer Note 36B) ($)
1,266,712,182
168,683,334 32.8 1,896,592,890
32.9 32.10
($ ) 33
1,266,712,182
Other Commitments
The Company has agreed to provide technical, financial and operational support to its various subsidiaries to enable them to meet their liabilities and obligations as and when they fall due.
Future cash flows in respect of above if any, is determinable on receipt of judgments / decisions pending with the relevant authorities. The Company does not expect the outcome of matters stated above to have a material adverse effect on the Company's financial condition, results of operations or cash flows.
The Company enters into separate sales contracts with every customer for sale of WECs and offers warranty on such sale of WECs on the basis as specified in the specific contracts for sales entered into with the customers, for varying periods generally ranging between 1 year to 3 years. During this period of warranty, the Company has to undertake repairs and maintenance of the WECs free of cost to the customer.
Based on the above contracts, the company had been making Free Warranty provisions in the past as per the Accounting Standard (AS) 29 – ‘Provisions, Contingent Liabilities and Contingent Assets (‘AS 29’).
During the year ended March 31, 2015, based on the past experiences the management had reviewed the expenses incurred against such free warranties and concluded that during the free warranty period of one to three years, the company incurs only nominal preventive maintenance for all machines for each project which cannot be allocated to a single machine and there are no major cost incurred during the warranty period for replacement of parts and therefore further decided not to make any provision for free warranties for the year ended March 31, 2015. During the year ended March 31, 2016 no provision has been made accordingly. However, the impact of such change in the Accounting treatment for Free Warranty Provisions on the financial statements had not been ascertained.
As at 31st March, 2015
(Fig in Rs.) - - - - -
Particulars
As at 31st March, 2016
(Fig in Rs.)
Opening Balance
-
Add: Additions during the year
-
Less: Utilization / Reversals during the year
-
Less: Adjustment for Design Defect Warranty
-
Closing Balance
-
Financial Report 2015-16
61


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
34A Finance Lease:
The Company has taken certain assets such as office equipments under finance lease.
Reconciliation of Minimum Lease Payment and their Present Value as at Balance Sheet date in accordance with Accounting Standard (AS) 19 on Leases is as follows:
As at 31st March, 2015
(Fig in Rs.) 840,212 814,003 26,209
Present Value of Minimum Lease Payments
As at 31st March, 2015
814,003 -
34B The Company has entered into various operating lease agreements in respect of Vehicles, Office Premises, Substations, Computer, Furniture and Fixtures and lease rent amounting to Rs. 940,263,228 (Previous Year Rs. 775,132,402 ) has been charged to the Statement of Profit & Loss. The total minimum payments in respect of non cancellable leases are as under:
As at 31st March, 2015
(Fig in Rs.) 1,103,257,711 3,121,388,928
891,780,000
35 "The Directorate General Central Excise Intelligence (DGCEI) authorities carried out an investigation during the year 2013-14, in the premises of the Company. The Company co-operated with the authorities and provided necessary details / information as and when asked for by the authorities. The Company has also paid an amount of Rs.182,785,086 as per the direction of DGCEI under protest. Subsequent to the year ended March 31, 2015, DGCEI authorities carried out an inquiry during the month of July'2015 in the premises of the Company. The Company co-operated with the authorities and has provided necessary details / information as and when asked for by the authorities.The Company has received show cause notice of Rs.5,128,659,349 and company is contending the notice and is of opinion that no liablity will be incurred thus no provision provided."
36A "(a) The Company had entered into a Technical Know How Agreement (‘TKA’) with Enercon GmbH (“Holding Company”) on January 12, 1994, which contained the terms for payment of Royalty, and the said TKA expired in January 11, 2004. The said TKA was valid for a period of 10 years from the effective date or for a period of 7 years from the date of commencement of commercial production. In terms of the said TKA, the Holding Company would receive 5% royalty fee on sale of WTC over a seven year period commencing from the date of production as per RBI guidelines. The total sum of gross royalty payable shall not exceed the total amount of DM 2.5 million. The Company had also entered into a supplementary Technical Agreement dated May 19, 2000 to the original TKA whereby certain modifications were made to the TKA. The first modification was in respect of the scope of products which was modified to mean E 26, 30 and 40 WEC and at least two other range / models manufactured or developed by the Holding Company. The second modification was with respect to modification of articles 5.3 and 5.4 of the TKA whereby the exclusive right of the Holding Company to manufacture electronic control components and the obligation of the Company to
Particulars
As at 31st March, 2016
(Fig in Rs.)
Minimum lease payments
-
Less: Present value of minimum lease payments
-
Unexpired finance charges
-
Particulars
Minimum Lease Payments
As at 31st March, 2016
As at 31st March, 2015
As at 31st March, 2016
Not later than one year
-
840,212
-
Later than one year but not later than five years
-
-
-
a ) General description of the significant leasing arrangements:
(i) Lease rentals are charged on the basis of terms agreed with the lessor. (ii) Assets are taken on lease over a period ranging from 1 to 3 years.
b ) The Company has entered into finance lease arrangement for certain assets which provides the company with an option to purchase assets at the expiry of lease period.
Minimum Lease Payments
As at 31st March, 2016
(Fig in Rs.)
Not later than one year
948,636,796
Later than one year but not later than five years
2,386,303,650
More than five years.
675,380,000
62
Financial Report 2015-16


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
purchase these products from the Holding Company at stipulated prices were deleted. In terms of the said TKA, the Company had completed the said royalty payment and had paid sums aggregating to DM 2.5 million (Rs. 4.78 crores, net of TDS Rs. 0.60 crores) for a period of seven years from the date of production during the financial years 1995-96 to 2001-02.
On September 29, 2006, the Company and the Holding Company entered into a binding principles agreement whereby it was agreed that all definitive agreements between the parties shall be prepared and executed on the basis of binding principles as agreed therein (hereinafter referred to as the “Agreed Principles”). The said Agreed Principles stated that in case of any inconsistencies between any of the earlier heads of agreement or any minutes of meeting signed between the parties, the said Agreed Principles would prevail. In terms of the said Agreed Principles, inter-alia, royalty payable @ 5% to the Holding Company would be in terms of the then Guidelines for Foreign Technical Collaboration issued by the Reserve Bank of India (“RBI”). The said Agreed Principles also contained a Draft Intellectual Property License Agreement (Draft IPLA). The said Agreed Principles were to be finalized into an Intellectual Property License Agreement (‘IPLA’) on or before March 31, 2007, a draft of which was initialed by the parties for identification and was attached to the said Agreed Principles.
In terms of clause 14 of the said draft IPLA, as the preconditions contained in clause 14 of the draft IPLA were not fulfilled on or before March 31, 2007, the draft IPLA stood automatically terminated without any further act and without any further liability to or on any party. Further, the Holding Company also itself terminated the draft IPLA by a letter dated December 8, 2008.
As per the said Agreed Principles, the Company would adopt the automatic route for payment of royalty, wherein royalty payable by it would be based on the percentage negotiated between the Company and Enercon GmbH, subject to maximum of 5% on domestic sales of WEC, subject to regulatory provisions and approvals. The Company had provided for such royalty payments on a yearly basis up to the year ended March 31, 2011. The company has not provided for such Royalty payable based on the said "Agreed Principles' for the financial year ended March 31, 2013 aggregating to Rs. 269,778,575 (including Service Tax and R&D Cess of Rs. 29,676,604) and for the financial year ended March 31, 2012 aggregating to Rs. 653,140,450 ( including Service Tax and R&D Cess of Rs. 60,991,357), in the books of accounts.
As at March 31, 2012, royalty based on the above mentioned ‘Agreed Principles’ remaining outstanding (net of payments made there against in earlier years) in the books of account aggregated to Rs. 973,673,865.
During the year ended March 31, 2013, inter-alia, based on the final CLB order passed and the revocation of patents by the Intellectual Property Appellate tribunal (“IPAB”), the legal opinions received in this respect and the defences raised by the Company at various Courts in respect of these matters; the Company has reconsidered its stand and had written back Royalty amounting to Rs. 973,673,865 together with R&D cess thereon amounting to Rs.33,276,501 pertaining to the period from January, 2009 to March, 2011, for the reasons specified as under:
i) The Company had continued to pay Royalty up to December 2008, although Enercon GmbH had committed breach of contract by non-supply of raw materials, parts and components from May 23, 2008, which was in contravention of the Order dated October 31, 2007 passed by the Honourable High Court of Judicature at Bombay;
ii) The amount of royalty can only be computed after the amount of supplies is known as the computation is based on a particular percentage of supply of raw materials, parts and components (the ‘Technical Know-how) by Enercon GmbH. As stated in (i) above, Enercon GmbH has not supplied any Technical Know-how since May 23, 2008;
iii) The Company has fully paid for royalty based on resumption of supplies made by Enercon GmbH to the extent of such supplies made by Enercon GmbH, pursuant to the order of the Honourable High Court of Judicature at Bombay;
iv) Enercon GmbH has not supplied any goods to date after completing the supplies based on the above mentioned order of the Honourable High Court of Judicature at Bombay;
v) Vide series of orders, passed by IPAB, all the patents belonging to Enercon GmbH, in respect of which the royalty was being claimed by Enercon GmbH and payments were made by the Company, have since been revoked and are no longer in existence. The matter is currently being challenged by the holding company in the Madras High Court which had referred certain matters back to the IPAB. The company has filed a special leave petition with the Supreme Court of India against the said referral by the Madras High Court, and the Supreme Court has stayed the said order of the Madras High Court till such time as the Company’s petition in the High Court of Judicature at Bombay is disposed off, but has not stayed the revocation of the above mentioned patents by the IPAB. Accordingly, the matters are currently sub-judice. Pending settlement of the above matter, the company has concluded that all patents continue to stand revoked.
Therefore the Management of the Company is of the view that full payment of royalty to Enercon GmbH for supplies made by them based on the Agreed principles and as per the order of the High Court of Judicature at Bombay which was required to be made has been made, and that no further royalty is payable to Enercon GmbH. In view of the above and based on legal advice received in this respect, the management of the Company is of the opinion that it is not probable that an outflow of resources will be required to settle the above matter and has therefore written back the said provision of Rs.973,673,865 along with R&D cess there on of Rs.33,276,501. However, as there is a litigation in this regard, the Company has out of abundant caution, disclosed the same as a contingent liability. (Refer Note 32.8)
Financial Report 2015-16 63


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
(b) As stated in (a) above, a draft IPLA was initiated for the purpose of identification between the parties and was attached to the said Agreed Principles. The said draft IPLA contained an alternate route for payment of royalty, which was subject to requisite approvals from the regulatory authorities. In terms of clause 14 of the said draft IPLA, as the preconditions contained in clause 14 of the draft IPLA were not fulfilled on or before March 31, 2007, the draft IPLA stood automatically terminated without any further act and without any further liability to or on any party.
36B
During the year ended March 31, 2009, the Indian Directors of the Company had filed a motion with the High Court of Judicature at Mumbai in respect of the said royalty wherein the High Court of Judicature at Mumbai has passed an order that Royalty is to be paid as per the Agreed Principles until the motion is heard and disposed off. In view of the non fulfilment of clause 14 of the draft IPLA, no provision for royalty based on the draft IPLA is considered necessary.
Further, Enercon GmbH has since then, terminated the draft IPLA and has not claimed for any royalty payment after the termination notice dated December 08, 2008. The differential in respect of Royalty payable under the alternate method as per the draft IPLA which is sub judice before the concerned authorities, and that payable based on the Agreed Principles for the period from September 29,2006 till date of termination of the draft IPLA by Enercon GmbH on December 08,2008 aggregates to approximately Rs.1,766,360,462/-. Subsequent to the termination of the draft IPLA by Enercon GmbH, litigation related to patent issues as filed by Enercon GmbH is in process between the Company and Enercon GmbH. The Company, based on legal advice, is of the view that it has a strong case to defend against such patent related litigation and that it does not expect any outflow of resources in respect of the same.
"During the financial year 2012-13, the company based on the legal advice obtained in the matter has written back the liability of Enercon GmbH amounting to Rs. 1,266,712,182 in respect of supplies of materials and components made prior to May 23, 2008. The said supplies made were not in accordance with the requirements of the business plan of the company as agreed with Enercon GmbH. Enercon GmbH had unjustifiably, arbitrarily and intermittently stopped supplies of raw materials and special components which it was contractually committed to supply. The material and components that were supplied for a short period of time was in a manner such that the Company could not complete its manufacturing activity of WEC’s as per its business plan, as there was a total mismatch between the parts and components supplied by the Holding Company and that required by the Company as per its business plan, apart from being in different / varying and incorrect proportions. This led to huge losses to the company – both operationally and financially, as the Company was not able to manufacture the required number of machines as per the business plan agreed with the Holding Company and based on which contracts with customers were entered into. The Holding Company also supplied materials like Foam and Balsa Kits which were not required by the Company and stopped supplies of essential components like castings etc. resulting in huge mismatch between inventories held and production requirements. As a result of the above, the Company has claimed that the actions of Enercon GmbH resulted in huge losses for the Company and the amount outstanding for such supplies aggregating to Rs. 1,266,712,182 was not payable; and has instead raised a counter claim for Rs. 4,727,285,960 for contribution loss on Enercon GmbH, though the same has not been accrued for in the books of the Company being contingent in nature. The company has raised Debit Notes on Enercon GmbH for loss of contribution for the relevant period based on certifications by an independent Cost Accountant, for a sum of Rs. 435,708,000 for the F.Y. 2006-07 and Rs. 4,291,577,960 for the financial year 2007-08. The company has also filed a suit against Enercon GmbH in the Bombay High Court for recovery of a sum of Rs. 4,727,285,960 as above, which is pending for hearing and disposal. The Company has also obtained a legal opinion in respect of its above stated position. The company has till date not received any demand from Enercon GmbH for the payment of this liability for more than 5 years now. Further, as stated in Note 30 of the Financial statement for the year 2011-12, the Company Law Board has passed an order dated 14th December, 2012 (CLB Order). Therefore, in view of the above and based on legal advice obtained in this matter, the management of the Company is of the view that the said sum of Rs. 1,266,712,182 towards supplies of materials and components is not payable to the Holding Company. Consequently, in view of the above and based on legal advice received in this respect, the management of the Company is of the view that it is not probable that an outflow of resources will be required to settle the above matter and has therefore written back the said liability. However, as there is a litigation in this regard, the Company has out of abundant caution, disclosed the same as a contingent liability.(Refer Note 32.9)."
Earnings Per Share
Particulars
As at 31st March, 2016
Face Value per Share (in Rs.)
10
Rs.
(961,748,854)
Weighted average number of Equity Shares (Nos.)
7,200,000
Earnings per Share - Basic and Diluted (in Rs.)
(134)
37
38
As at 31st March, 2015
10 (3,054,724,000) 7,200,000 (424)
Employee Benefits:
Contributions are made to Government Provident Fund and Family Pension Fund and other statutory funds which covers all regular employees as applicable under the respective acts. Both the employees and the Company make predetermined contributions to Provident Funds. The contributions are based on certain proportions of the Employees Salary.
Provision for Gratuity and Compensated Absences for all employees is based upon actuarial valuation done at the end of every financial year. Major drivers in actuarial assumptions, typically, are years of service and employee compensation. In terms of Accounting Standards 15 (AS) (Revised) 2005 - 'Employee Benefits', commitments are actuarially determined using 'Projected Unit Credit' Method. Gains and Losses on changes in actuarial assumptions are accounted for in the Statement of Profit & Loss.
64
Financial Report 2015-16


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Financial Report 2015-16 65
In respect of gratuity and compensated absences:
Reconciliation of liability recognised in the Balance sheet
Present value of commitments (as per actuarial valuation) Fair value of plan assets
Net liability in the Balance sheet (as per actuarial valuation)
(199,407,588.00) 66,047,105.00 (133,360,483.00)
(183,029,896) 79,472,011 (103,557,885)
(131,304,867) 79,008,525 (52,296,342)
(139,651,147) 74,023,946 (65,627,201)
(88,151,469) - (88,151,469)
(84,505,457) - (84,505,457)
(85,177,258) - (85,177,258)
(98,610,345) - (98,610,345)
Movement in net liability recognised in the Balance sheet
Net liability as at the beginning of the year
Net expense recognised in the Profit and Loss account Contribution during the year
Net liability as at the end of the year
(103,557,885.00) (31,216,796.00) 1,414,198.00 (133,360,483.00)
(52,296,342) (57,061,827) 5,800,284 (103,557,885)
(65,627,201) 5,113,685 8,217,174 (52,296,342)
(42,342,208) (44,967,152) 21,682,159 (65,627,201)
(84,505,457) (47,440,810) 43,794,798 (88,151,469)
(85,177,258) (38,478,769) 39,150,570 (84,505,457)
(98,610,345) (26,237,688) 39,670,775 (85,177,258)
(53,938,951) (76,846,413) 32,175,019 (98,610,345)
Expense recognised in the Profit and Loss account
Current service cost
Interest cost
Expected return on plan assets
Cost of Plan Amendment
Actuarial (gains)/ losses
Expense charged to the Profit and Loss account
23,301,583.00 14,642,392.00 (6,357,761.00)
18,281,256 12,224,483 (7,355,694)
23,637,145 11,172,092 (6,440,083)
18,719,767 8,751,785 (5,152,697) - 22,648,297 44,967,152
10,945,342 6,760,437 - - 29,735,031 47,440,810
9,047,010 7,930,003 - - 21,501,756 38,478,769
11,182,278 7,888,828 - - 7,166,582 26,237,688
10,883,676 4,584,811 - - 61,377,926 76,846,413
Return on plan assets
Expected return on plan assets Actuarial gains/ (losses)
Actual return on plan assets
6,357,761.00 (353,300.00) 6,004,461.00
7,355,694 (694,566) 6,661,128
6,440,083 (162,881) 6,277,202
5,152,697 451,698 5,604,395
- - -
- - -
- - -
- - -
Reconciliation of defined-benefit commitments
Commitments as at the beginning of the year Current service cost
Interest cost
Paid benefits
183,029,896 23,301,583 14,642,392
131,304,866 18,281,256 12,224,483
139,651,146 23,637,145 11,172,092 (9,509,797)
102,962,171 18,719,767 8,751,785 (13,882,572) - 23,099,995 139,651,146
84,505,457 10,945,342 6,760,437 (43,794,798)
85,177,258 9,047,010 7,930,003
98,610,345 11,182,278 7,888,828 (39,670,775) - 7,166,582 85,177,258
53,938,951 10,883,676 4,584,811 (32,175,019) - 61,377,926 98,610,345
Cost of Plan Amendment
Actuarial (gains)/ losses Commitments as at end of the year
- (33,645,720) 131,304,866
29,735,031 88,151,469
21,501,756 84,505,457
2015-16
2014-15
2013-14
2012-13
2015-16
2014-15
2013-14
2012-13
(369,418.00) 31,216,796.00
- (80,211,872) (57,061,827)
- (33,482,839) (5,113,685)
(20,843,565) - (722,718) 199,407,588
(11,997,926) - 33,217,217 183,029,896
(39,150,570)
Gratuity (funded)
Compensated Absences (Unfunded)
Rupees Dr/(Cr)


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
66 Financial Report 2015-16
Reconciliation of plan assets
Plan assets as at the beginning of the year Expected return on plan assets Contributions during the year
Paid benefits
79,472,011 6,357,761 1,414,198
79,008,525 7,355,694 5,800,284
74,023,946 60,619,964 6,440,083 5,152,697 8,217,174 21,682,159
- -
-
-
Actuarial gains / (losses)
Plan assets as at the end of the year
- -
- -
Experience adjustment:
On plan liabilities
673,695.00 (353,300.00) (199,407,588.00) 66,047,105.00 (133,360,483.00)
8,084,737 (694,566) (183,029,896) 79,472,011 (103,557,885)
(8,810,787) (162,881) (131,304,867) 79,008,525 (52,296,342)
15,176,045 451,698 (139,651,147) 74,023,946 (65,627,201)
16,562,777 1,022,863 (102,962,172) 60,619,964 (42,342,208)
9,716,578 25,136,941 (60,863,018) 52,201,756 (8,661,262)
1,876,799 494,640 (48,173,398) 26,420,663 (21,752,735)
On plan assets
Present value of benefit obligation
Fair value of plan assets
Excess of (obligation over plan assets) / plan assets over obligation
Experience adjustment:
On plan liabilities
30,145,652 - (88,151,469) - (88,151,469)
12,858,292 - (84,505,457) - (84,505,457)
20,697,356 - (85,177,258) - (85,177,258)
57,147,778 - (98,610,345) - (98,610,345)
22,797,068 - (53,938,951) - (53,938,951)
8,033,152 - (31,842,286) - (31,842,286)
4,962,715 - (24,820,393) - (24,820,393)
On plan assets
Present value of benefit obligation
Fair value of plan assets
Excess of (obligation over plan assets) / plan assets over obligation
The actuarial calculations used to estimate commitments and expenses in respect of gratuity and the commitment’s size, funding requirements and expense:
compensated absences are based on the following assumptions which if changed, would affect
Discount rate
Expected return on plan assets Expected rate of salary increase Mortality
2012-13 8.00% N.A 7.50%
2015-16 8.06% 8.06% 7.50%
2014-15 8.00% 8.00% 7.50%
2013-14
9.31%
9.31%
7.50%
LIC (1994-96) Ultimate
2012-13 8.00% 8.70% 7.50%
2015-16 2014-15 8.06% 8.00% N.A N.A 7.50% 7.50%
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
(20,843,565) (353,300) 66,047,105
(11,997,926) (694,566) 79,472,011
(9,509,797) (13,882,572) (162,881) 451,698 79,008,525 74,023,946
- - 43,794,798 39,150,570 (43,794,798) (39,150,570)
- 39,670,775 (39,670,775) - -
- 32,175,019 (32,175,019) - -
Gratuity (funded)
Compensated Absences (Unfunded)
Gratuity (funded) (Rupees Dr/(Cr))
Compensated Absences (Unfunded) (Rupees Dr/(Cr))
2013-14
9.31%
N.A
7.50%
LIC (1994-96) Ultimate


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Financial Report 2015-16 67
39 Segment Information for the year ended 31st March, 2016 PARTICULARS
31.03.2016
31.03.2015
(Fig in Rs.) Total
(A) Segment Revenue
(B) Segment Result
(C) Interest Expenses
O&M
12,632,018,077 393,455,976
- - -
1,580,471,010 1,113,763 -
14,605,945,063 2,358,208,977 69,208,812 2,299,979,421
O&M
7,992,165,573 509,130,676
- - -
2,716,704,000 26,958,291 -
11,218,000,249 (1,664,390,747) 89,722,628 2,736,602,227
Interest Expenses (Unallocated)
Less: Excess / (Short) of unallocated
income over unallocated expenses
- -
- -
(71,316,626)
Income Taxes
(D) Total Profit after Taxation
(E) Other Information
- - - -
(1,126,005,618) (175,036,020) (961,748,454)
- - - -
(1,507,308,228) (3,054,724,000)
Segment Assets *
19,292,062,667 2,445,219,661 - -
13,512,914,294
-
35,250,196,622 11,341,339,782
11,685,744,379 2,534,608,996 - -
13,543,227,215
2,676,194,000
30,439,774,590 16,150,372,026
Unallocated Corporate Assets
Total Assets
46,591,536,404
46,590,146,616
Segment Liabilities
3,966,948,936 709,881,824
20,711,887
-
4,697,542,647 37,026,690,688
6,953,797,677 903,526,652
178,016,257
2,689,745,709
10,725,086,294 30,036,008,400
Unallocated Corporate Liabilities
Total Liabilities
41,724,233,336 82,189,537 10,396,532
40,761,094,694 12,551,878 10,396,532
(F) Capital Expenditure
76,709,830 5,479,708
-
-
36,969,156 (24,417,278)
-
-
Unallocated Capital Expenditure
Wind Energy Generation Convertors & of Electricity
Development Rights
Trading
Total
Wind Energy Generation Convertors & of Electricity
Development Rights
Trading
2,157,890,760 199,404,454 - 69,208,812
(1,992,360,882) 301,011,844 - 89,722,628


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
68 Financial Report 2015-16
39
Segment Information for the year ended 31st March, 2016 PARTICULARS
(Fig in Rs.) Total
(G)
Depreciation / Amortisation
318,683,421
123,451,158
-
262,268,693
124,132,311
-
386,401,004 154,979,243
(H)
Non Cash Expenditure Other than Depreciation
Unallocated Depreciation / Amortisation
* Segment assets includes Capital Work in Progress
Notes on Segment Information
Wind Energy Convertors & O&M
Generation of Electricity
Development Rights
Trading -
Total 442,134,579
Wind Energy Convertors & O&M
Generation of Electricity
Development Rights
Trading -
31.03.2016
31.03.2015
a The Company has identified segments in compliance with the Accounting Standard AS – 17 Segment Reporting, considering the Management structure, the internal financial and management reporting and the differing risks and returns of products in each segment. The Company has considered business segment as primary segment for disclosure.
b “The main segments identified are as follows:
(i) Wind Energy Convertors & O&M - for Manufacture, Sale and Trading of Wind Energy Convertors, accessries and parts / components thereof and all activities incidental and
related thereto and;
(ii) Generation of Electricity - from Wind Power (iii) Development Right
(iv) Trading
Till the year 2013-14, the Company had identified two segments namely Wind Energy Convertors and Generation of Electricity only. However, on review of the present businesses and considering its future relevance to the business and the magnitude of the operations of relevant segments the Company has identified additional segments namely Development Rights and Trading.
Accordingly the Segment reporting for the previous year has been restated in line with the new segments identified.”
c Segment revenue relating to each of the above segment includes income from services provided, wherever applicable. d Allocation of corporate assets and liabilities is done to the extent possible as identified by the management.
58,295,493
91,320,199


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Related Party Disclosures:
I. Parties where control exists
a) Holding Company
b) Subsidiary Companies
c) Associates
d) Enterprise under Significant Influence
of Key Management Personnel or their relatives with whom Transactions had taken place during the year:
II. Key Management Personnel
III. Relatives of Key Management Personnel
IV. Transactions during the year with the related parties/ Key management personnel
40
Enercon GmbH
Wind World Wind Farms (Krishna) Limited
Wind World Wind Farms (Karnataka) Limited
Wind World Wind Farms (Jaisalmer) Pvt. Limited
Wind World Financial Consultancy Pvt. Limited
Wind World Wind Farms (Rajasthan) Pvt. Limited
Wind World (India) Power Development Pvt. Limited
Wind World Wind Farms (Hindustan) Pvt. Limited
Wind World Wind Farms (Prithvi) Pvt. Limited
Wind World Wind Farms (Nettur) Pvt. Limited
Wind World Wind Farms (Chitradurga) Pvt. Limited
EIL South Africa Power Development (PTY) Limited
Enercon Lanka Power Development Pvt. Limited
Wind World (India) Infrastructure Pvt. Limited
Wind World Wind Farms (Sai) Pvt. Limited
Wind World Wind Farms (Maharana Pratap) Pvt. Limited
Wind World Wind Farms (MP) Pvt. Limited
Wind World Wind Farms (Temdarai) Pvt. Limited
Langefontein Wind Farms (PTY) Limited (Subsidiary of Wind World (India) Power Development Pvt. Limited) Wind World Wind Resource Development Pvt. Limited
Wind World Wind Farms (Samana) Pvt. Limited
Wind World Wind Farms (Gadag) Pvt. Limited
Wind World Wind Farms (Cauvery) Pvt. Limited
Vaayu (India) Power Corporation Pvt. Limited (Subsidiary of Wind World Wind Farms (Krishna) Limited).
Vaayu Renewable Energy (Arabian Sea) Pvt. Limited (Subsidiary of Wind World Wind Farms (Sai) Pvt. Limited). Wind World Wind Farms (Andhra Pradesh) Pvt. Limited
Wind World Wind Farms (Kerala) Pvt. Limited
Wind World Wind Farms (Tamilnadu) Pvt. Limited
Wind World Wind Farms (Gujarat) Pvt. Limited
Wind World Wind Farms (Maharashtra) Pvt. Limited
Wind World Wind Farms (Uttar Pradesh) Pvt. Limited
Wind World Wind Farms (India) Limited J. N Investments & Trading Co. Pvt. Ltd Vish Wind Infrastructure LLP
Vaayu Infrastructure LLP
Vaayu Renewable Energy (Krishna) Pvt. Limited Vaayu Renewable Energy (Tapti) Pvt. Limited Vaayu Renewable Energy (Saraswati) Pvt. Limited Vaayu Renewable Energy (Purna) Pvt. Ltd.
Mr. Yogesh Mehra – Managing Director
Mr. Ajay Mehra – Director
Mr. Sidharth Mehra - Son of Director
Mrs. Radhika Mehra - Wife of Managing Director
Mrs. Sudarshan Mehra - Mother of Managing Director and Director Mrs. Minakshi Mehra - Wife of Director
Mrs. Sitakshee Bharat Khanna - Daughter of Director Refer to Annexure at end of report
Financial Report 2015-16 69


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
41 Derivative Instruments:
41.1 Forward Exchange and Options Contracts (being a derivative instrument), which are not intended for trading or speculative purposes, but for hedge purposes, to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.
Currency
Amount
Buy / Sell
EURO
1,951,425 (P.Y - 1,233,229)
Buy (P.Y – Buy)
US Dollar
2,427,427 (P.Y – 2,639,364)
Buy (P.Y – Buy)
41.2 Interest Rate Swaps to hedge against fluctuations in interest rate changes:
Cross Currency
US Dollar Rupees
For the Year ended 31st March, 2015
- EUR 0
Particulars
For the Year ended 31st March, 2016
No.of Contracts
-
Notional Principal
EUR 0
41.3 Currency Swaps (other than forward exchange contracts stated above) to hedge against fluctuations in changes in exchange rate.
Particulars
For the Year ended 31st March, 2016
No.of Contracts
-
Notional Principal
EUR 0
41.4 Options Contracts
For the Year ended 31st March, 2015
- EUR 0
For the Year ended 31st March, 2015
- USD 0
- EUR 0
For the Year ended 31st March, 2015
(203,935,583) (3,035,207) (331,929,302) (5,310,869) (1,918,654) (20,749) (63,908) (1,344) (70,349,591) (1,349,503) (3,233,115) (50,313)
Particulars
For the Year ended 31st March, 2016
No.of Contracts
-
Notional Principal
USD 0
No.of Contracts
-
Notional Principal
EUR 0
41.5 The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:
Particulars
For the Year ended 31st March, 2016
Import of Goods & Services (in Rs.)
(488,343,394)
Import of Goods & Services (In Euro)
(6,477,132)
Import of Goods & Services (in Rs.)
(370,247,058)
Import of Goods & Services (In USD)
(5,588,213)
Import of Goods & Services (in Rs.)
17,105,943
Import of Goods & Services (In GBP)
179,170
Import of Goods & Services (in Rs.)
538,122
Import of Goods & Services (In AUD)
10,556
Import of Goods & Services (in Rs.)
(1,109,693,452)
Import of Goods & Services (In JPY)
(18,811,552)
Import of Goods & Services (in Rs.)
154,306
Import of Goods & Services (In CHF)
2,237
70
Financial Report 2015-16


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
42 For the Year ended 31st March, 2015
Particulars
For the Year ended 31st March, 2016
(Fig in Rs.)
Value of the Imported and Indigenous consumption:
Value of the Raw Material Consumed
Imported 16.21% (22.36 %)
1,159,281,608
Indigenous 83.79% (77.64 %)
5,939,590,939
Total
7,098,872,547
Value of the Stores and Spares Expensed
Imported 32.65% (19.71 %)
9,479,454
Indigenous 67.35% (80.29 %)
160,610,036
Total
170,089,490
42.1
42.2 CIF Value of Imports:
42.3 Expenditure in Foreign Currency
(Fig in Rs.)
542,940,088 4,673,048,432 5,215,988,520
14,262,764 29,425,888 43,688,652
730,317,606 14,262,764 - 744,580,371
11,920,185 16,061,871 35,169 1,850,100 369,758 5,827,010 13,162,436 395,996 49,622,525
2,230,170 2,230,170
Raw Materials
1,235,633,505
Stores & Spares
9,479,454
Capital Goods
11,843,114
Total
1,256,956,073
Travelling Expenses
1,030,500
Interest
9,858,631
Testing Charges
180,957
Bank Charges
259,234
Repairs & Maintenance – Plant and Machinery
108,640
Carbon Credit Expenses
4,782,387
Legal & Professional Charges
8,436,843
Others
2,241,838
Total
26,899,029
43 Earnings in Foreign Currency
Sale of Carbon Credits
6,057,560
Total
6,057,560
44 The Company has revised the estimated useful life of certain assets with effect from April 1, 2014, based on the independent technical study and evaluation of the useful life of the assets conducted in this regard and the Company's management asssessment thereof. The details of previously applied depreciation rates / useful life and the revised estimated life, wherever the impact is significant are as follows:
Financial Report 2015-16 71


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Type of Assets
Useful life as per Companies Act 1956 (In years)
Useful life as per Companies Act 2013 (In years)
Useful life considered by the Company (In years)
Plant & Machinery
- Special Machine Tools
21
15
20
- Material Handling Equipment
21
15
20
- Transport Equipment
21
15
20
- Mould
21
15
20
- Canteen Equipment
21
15
20
- Plant & Machinery
21
15
20
Furniture Fixture & Office Equipment
- Furniture & Fixture
16
10
10
- Office Equipment
21
5
10
Windfarm
19
22
25
Substation
19
35
30
Vehicle - Motor Car
11
8
8
As a result of the revision in the estimated useful life of certain assets as referred above, the depreciation expense in the Statement of Profit and Loss for the year is lower by Rs.NIL (P.Y. Rs.166,362,563/-)
45 During the financial year 2014-15, the Company has sold its Sub-stations and EHV transmission network to the wholly owned subsidiary, Wind World Wind Farms (AP) Pvt. Ltd.,(WWWFAPPL) at the market value based on the valuation report received from M/s Kanti Karamsey & Co., the Certified valuer, based on the valuation as on December 31, 2014. The above sale was in line with the focus of the core business and keeping investments into Sub-station and EHV transmission network into separate SPV. The Company had invested into Sub-Station and EHV transmission network from the year 2001 to the year 2007 of which some of the Sub-station and EHV transmission network were charged off to the profit and loss account of respective years. The sale value of such charged off Sub-station and EHV transmission network has been credited to the Other Income in the Statement of Profit and loss during 2014-15 while for the Substation and EHV transmission network which were capitalised in the Fixed Assets block of the Company has been computed and net resultant surplus of sale value over the written down value of these assets has been credited as profit on sale of fixed assets during 2014-15. The Company has passed on the risk and reward of these assets to WWWFAPPL and hence recognised the same as income as above. The Company has informed about the above transaction to its working capital lenders who have the charge on aforesaid assets. The Company does not intend to dilute the security of the lenders and it also has proposed to offer the pledge of shares which it holds in WWWFAPPL to further strengthen the security. The working capital and other lenders have ratified the above transaction. During the financial year 2015-16, the Company is in the process of creating the necessary security on these assets in favour of the working capital lenders and finalising the terms and conditions for the usage of the above Sub-stations and EHV transmission network, hence no Sub Station Usage Charges have been charged by WWWFAPPL to WWIL for the year.
46 "In view of the order of the Company Law Board, the Company is not able to convene the Board Meeting or the General Meeting and hence the Company has not appointed the Independent Directors on its Board as required under section 149 of the Companies Act, 2013 and has not constituted the Audit committee as required under Section 177 of the Companies Act, 2013.
Further the related party transaction, especially the modification of the terms of Operations and Maintenance agreement with Wind World Wind Farms (Hindustan) Private Limited (WWWFHPL) – the transaction was not at arm’s length prices as the same was required to substantiate the fresh loan disbursement by IDBI Bank Ltd to WWWFHPL where the surplus money on disbursement of the loan was repatriated to WWIL to meet its working capital requirement."
47 The Income Tax Authorities carried out a search and seizure operation on Wind World India Limited (WWIL) on 14.03.2013. WWIL during the search operations co-operated with the Income Tax Authorities and provided various information called for from time to time. During the Financial year 2013-14, ie February 2014, WWIL received the Notice u/s 153A for filing its Return of Income for the period from Assessment year 2007-08 to Assessment year 2012-13. In response to the same, the company has taken necessary steps and the outcome of the same is expected to be finalized in next 12 to 15 months, as per the present status no further liability is envisaged.
48 Central Excise Duty is exempted on Company’s production of Wind Energy Convertor under Notification No.12/2012 – Central Excise dated 17.03.2012 ( Sr.no.332, Item No.13 of List 8) and on other sales and services rendered by the Company.
49 Previous year's figures have been regrouped / re-classified wherever necessary to correspond with the current year's classification / disclosure
72
Financial Report 2015-16
Signatures to Notes 1 to 49
WIND WORLD (INDIA) LIMITED YOGESH MEHRA
Managing Director DIN: 00296579
Place : Mumbai Date : 20.07.2016
AJAY MEHRA
Director
DIN: 00296668
KAUSHIK KHONA
CFO & Company Secretary


WIND WORLD (INDIA) LIMITED (formerly known as ENERCON (INDIA) LIMITED)
NOTES
Financial Report 2015-16 73


EWnIeNrDcoWn O(IRnLdDia()ILNiDmIiAte)dL(INMoIwTEKDnown As Wind World (India) Limited) (formerly known as ENERCON (INDIA) LIMITED)
NOTES
74 Financial Report 20115-162


Financial Report 2015-16 17


Wind World (India) Limited
Wind World Tower, A -9, Veera Industrial Estate,
Veera Desai Road, Andheri ( W), Mumbai 400 053
Tel. No: 91-22-66924848 • Website: www.windworldindia.com
Conceptualised, Designed & Printed by Synergy Creations • 9820277924