🕐24.06.13 - 09:27 Uhr

MYTRAH ENERGY: NEAR 10 FOLD INCREASE IN EBITDA TO US$35.48M REPORTED IN FINAL RE
SULTS FOR NINE MONTHS ENDED 31 DECEMBER 2012



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN
24 June 2013
Mytrah Energy Limited (“Mytrah Energy” or the “Company”) Final Results for nine months ended 31 December 2012 The Board of Directors of Mytrah Energy Limited (the “Board”) is pleased to announce the Company’s financial results for the nine months period ended 31 December 2012, following the Company’s change to its financial year end from March to December as announced on 13 March 2013.

The audited report and accounts will be posted to shareholders on 30 June 2013 and will be available on the Company’s website www.mytrah.com.

The Company further announces that the Annual General Meeting will be held at 12 noon on 31 July 2013 at Anson Place, Mill Court, La Charroterie, St Peter Port, Guernsey, GY1 1EJ, Channel Islands. Highlights:
* Revenue of US$38.91 m including other operating income, for the 9 month period ended 31 December 2012 (Revenue for 12 month period ended 31 March 2012: US$ 6.97 m; other operating income 31 March 2012; Nil) * Earnings before other income, taxes, depreciation and amortisation US$ 35.48 m for the period ending 31 December 2012 (31 March 2012: US$ 3.78 m); * Profit after tax of US$12.02 m for the period ended 31 December 2012 (31 March 2012: loss after tax of US$ 2.83 m); * USD0.45 m and USD0.24 m of Generation Based Incentive (“GBI”) and Renewable Energy Certificates (“REC”) revenues respectively not accrued pending extension of GBI scheme and realization of RECs. * Currently 309.9 megawatts (“MW”) of fully operational capacity * Exceptional ROE of approximately 20% for 9 months ended December, 2012, despite the current portfolio of 309.9 MW not running for the entire period * Licenses, access or concessions secured for areas suitable for upto 8,000 MW of future projects. * Increase in tariffs of 22.75% and 34.29% in Rajasthan (75.60 MW installed capacity) and Andhra Pradesh (63 MW installed capacity) respectively. * Average age of trade receivables 49 days (2012: 75 days) Post Year End · Additional senior debt of US$203m secured across a diverse range of Indian senior debt providers led by The State Bank of India and PTC India Financial Services, to finance 238.2 MW of capacity, with turbines from Regen Power and Gamesa due for delivery in 2013. · Announced the proposed acquisition of 59.75 MW of capacity in the States of Tamil Nadu and Maharashtra subject to regulatory approval and formal documentation. · Anticipated total installed capacity of over 600 MW during 2013. · Proposed re-introduction of Generation Based Incentives announced by the Indian Government. · Change of year-end from March to December to reflect the Indian wind season.
Chairman and CEO’s Statement Over the last nine months, Mytrah has consolidated its position as a profitable, cash generative, independent power producer (”IPP”) with an expanding portfolio of operating wind farm projects across India. We have also increased the visibility of our asset rollout schedule by securing debt financing for a total of 238.2 MW of capacity across three projects currently under development, which is expected to bring our installed capacity to over 600 MW during 2013.

Reaching this significant milestone will highlight our leading position over our peer wind IPPs in India. Our continued success is down to our abiity to forge strong relationships with wind turbine manufactuers; rigorous cost control; securing financing across a diverse range of leading Indian lenders and building teams with proven ability to execute wind projects and secure land and legal permissions.

Moreover, we aim to have the best in class in asset management with respect to current and future projects. We announced in March 2013 that we had secured US$203 m of additional senior debt to finance the construction of 238.2 MW of new capacity, split between two projects with Gamesa machines in Andhra Pradesh and Karnataka totalling 137.7 MW and one project of 100.5 MW with ReGen Power machines in Tamil Nadu.

We believe that we are the first IPP in the Indian wind sector to secure this scale of funding and have now developed relationships with 15 banks, which we believe provides the Company with a significant and broad based support from the Indian Banking Sector for the Company’s development pipeline totalling 1,500 MW during 2015, a testament to our project development strategy and a robust team that has propelled our leading position in the industry. Following the completion of these projects and the proposed acquisition, Mytrah will have a total of over 600 MW connected to the grid and fully operational.

These assets are spread over 16 project sites in 6 different states.

We believe that this gives us two significant advantages.

Firstly we will benefit from a portfolio effect, meaning that as our sites are spread across the wind rich states in India any variation in wind patterns across India is spread across our portfolio giving us increased visibility of generation and revenue streams over the long term.

Secondly, the majority of our current sites have the ability to be significantly expanded.

This means a large part of the development risk on future capacity is reduced as parts of the infrastructure are already in place for that expansion. We would also like to highlight that of our expected portfolio of over 600 MW by the end of 2013, we anticipate that approximately 20% of those assets will be selling power under the Group Captive scheme.

Group Captive schemes will enable Mytrah to be able to sell electricity that it produces directly to the end consumers.

This is a new development for the Company and will have the affect of enabling us to leverage those assets into future increases in the power price and given the significant element of fixed costs in our production, any rise in the realised price for generated electricity results in an increase in the Companys operating margins.

This is particularly important as there is no input cost inflation across the life of those assets and as a result we see this bringing significant value to Mytrah.

In addition it is worth noting that the portion of our portfolio in the state of Maharashtra is under Power Purchase Agreements (“PPAs”) with 13-year terms.

Consequentially the tariff on those off-take agreements will get reset half way through the expected 25 year life of those assets that again should provide significant upside to the Company. As we announced in April 2013, your Board is evaluating a potential initial public offering and listing of our wind power assets as a Business Trust (“Business Trust”) on the Singapore Exchange Securities Trading Limited (“Proposed Listing”).

A Business Trust is similar to a Real Estate Investment Trust (“REIT”) structure for non-property assets.

The Proposed Listing will be subject to regulatory approvals in Singapore and an application will be made to the relevant authorities in due course.

We have engaged Global Book Runners and counsel for the Proposed Listing. The portfolio that would be acquired by the Business Trust is being evaluated and it is currently envisaged that the Company would maintain a significact ownership stake in the Business Trust.

We expect the proceeds of the Proposed Listing to be used to pay down all or a substantial part of the Group’s senior and mezzanine debt and part finance the rollout of the development pipeline, focussing on our target of 1,500 MW during 2015.

Your Board believes that the Proposed Listing would optimise the cost of the Company’s debt and equity, which is the Company’s largest operational cost, and therefore enhance the underlying value of its assets and generating substantial shareholder value. Our current portfolio continues to perform well, with PLFs at the portfolio level at or exceeding our initial estimates, validating our vigorous evaluation process used for all new projects and our strategy to build scale quickly whilst not compromising on the quality of our assets. We believe that Mytrahs continued access to financing in India, our access to land enabling us to take greater control over our roll-out schedule, our diversified range of strong partnerships with wind turbine manufacturers, our ability to build assets at a competitive cost whilst managing development risk, and the quality of our management and teams will enable the Group to continue to grow rapidly and generate significant value for our shareholders. Further information on the Company can be found at www.mytrah.com. - Ends - For further information please contact: Mytrah Energy Limited
Ravi Kailas, Chairman and Chief Executive Officer +91 40 33760100
Strand Hanson Limited
Angela Peace / Richard Tulloch / James Harris +44 (0) 20 7409 3494
Investec Bank plc
Chris Sim / Jeremy Ellis +44 (0) 20 75975970
Mirabaud Securities LLP
Peter Krens / Rory Scott +44 (0) 20 7878 3360
St Brides Media & Finance Limited
Elisabeth Cowell/Frank Buhagiar +44 (0) 20 7236 1177
Business Review It is a pleasure to present Mytrahs preliminary audited financial results for the nine month period ended 31 December 2012 Financial Review A summary of key financial results is set out in the tables below and discussed in this section. Income statement summary Period/Year ended 9 months ended 31 December 2012 12 months ended 31 March 2012 Change
US$m US$m US$m Revenue 30.92 6.97 23.95 Gross Profit 25.60 3.53 22.07 Other operating income 7.99 - 7.99 EBITDA 35.48 3.78 31.70 Finance costs (net) 16.67 4.70 11.97 Depreciation and amortisation 5.59 3.28 2.31 Profit/(Loss) before tax 13.22 (4.20) 17.42 Taxation credit/(expense) (1.19) 1.37 2.56 Profit/(Loss) after tax 12.03 (2.83) 14.86 Revenue For the nine month period ended 31 December 2012 the Group’s revenue was US$ 38.91m, including other operating income (revenue 12 month period ended 31 March 2012: US$ 6.97m; other operating income 31 March 2012: Nil).

The increase in revenues is attributable to increase in installed capacity during the period.

USD 0.45 m and USD 0.24 m of Generation Based Incentive (“GBI”) and Renewable Energy Certificates (“REC”) revenues respectively not accrued pending extension of GBI scheme and realization of RECs. Gross profit As a result of increased revenues the Group has recorded a gross profit of US$ 25.60 m for the nine month period ended 31 December 2012 (31 March 2012: US$ 3.53m).

The gross profit margins increased by 32.15% to 82.79% for the nine month period ended 31 December 2012 (31 March 2012: 50.64%).

Gross profit increased by US$ 4.27 m on account of change in estimated useful life and residual value of wind farm assets as explained in note 35 of the consolidated financial statements. EBITDA EBITDA for the nine month period ended 31 December 2012 increased to US$ 35.48 m (31 March 2012: US$ 3.78 m), an increase of US$ 31.70m following the significant increase in Group’s revenues.

EBITDA includes other operating income of US$ 7.99m (31 March 2012: US$ Nil). Finance costs Finance costs for the nine month period ended 31 December 2012 were US$ 16.67 m compared with US$ 4.70 m for the year ended 31 March 2012, which was due to an increase in borrowings by 115.76 m to US$ 268.43 m at 31 December 2012 (31 March 2012: US$ 152.67), reflecting the increase in the Company’s installed capacity during the period. Depreciation and amortisation Depreciation and amortisation for the nine month period ended 31 December 2012 was US$ 5.59 m (31 March 2012: US$ 3.28 m).

The increase in depreciation was mainly on account of depreciation on wind farms and other plant and machinery capitalised during the period.

Also during the period, in line with international accounting standards, the group has revised the useful life of wind farms assets and increased the useful life of Wind Turbine Generator to 25 years from 20 years.

Refer note 35 of the consolidated financial statements for further details on change in useful life of plant and machinery. Taxation The tax expense for the period ended 31 December 2012 was US$ 1.19 m (31 March 2012: tax credit of US$ 1.37 m).

The tax expense represents the net deferred tax liability on timing differences accounted during the period. Profit after tax The Group recorded a profit after tax of US$ 12.03 m for the nine month period ended 31 December 2012 (31 March 2012: loss after tax of US$ 2.83m).

The operations resulted in profit for the period from continuing operations attributable to the equity holders of the Company which was primarily due to an increase in revenues by US$ 23.95 m during the period ended 31 December 2012. Profit per share: Basic and diluted earnings per share from continuing operations for the nine month period ended 31 December 2012 were US$ 0.0735, compared with US$ (0.0173) for the year ended 31 March 2012. Financial position Our balance sheet at 31 December 2012 can be summarised as set out in the table below:
Assets (US$m) Liabilities (US$m) Net assets/(liabilities) (US$m)
Property, plant and equipment 358.17 - 358.17 Other non-current assets and liabilities 45.40 (14.25) 31.15 Current assets and liabilities 14.61 (29.31) (14.70) Post-retirement obligations - (0.01) (0.01) Deferred tax 3.09
3.09 Total before net debt
377.70 Net debt
(258.97) 258.97 Total as at 31 December 2012
118.73 Total as at 31 March 2012
111.60 Net assets increased by 6.4% to US$ 118.73 m (31 March 2012: US$ 111.60 m) and the net assets per share by 6.4% to US$ 0.73 (31 March 2012: US$ 0.68 ).

The main movements in the balance sheet items were trade receivables, trade payables and loans drawn down during the financial year. Capital structure Strong financial capital management is an integral part of the Directors’ strategy to achieve the Group’s stated objectives.

The Directors review financial capital reports on a quarterly basis and the Group treasury function do so on a weekly basis, ensuring that the Group has adequate liquidity. As at 31 December 2012 the Group had net debt of US$ 258.97 m (31 March 2012: US$ 149.52 m).

During the nine month period ended 31 December 2012, additional loans of US$ 115.76 m were drawn down (31 March 2012: US$ 152.67 m).

The Group continues to be able to borrow at competitive rates and therefore currently deems this to be the most effective means of raising finance.

The Group was able to establish good relationships with banks and financial institutions which enabled it to raise further financing since period end. Principal risks and uncertainties The Group is faced with a variety of risks to the management of the business and the execution of its strategy.

These risks are managed on a day-to-day basis by the Management Committee and formally reviewed by the Audit Committee and the Board to monitor that appropriate and proportionate mitigation in the form of processes and controls are in place.

A summary of the key business risks are detailed below. Business Interruption/Critical Service Failure The Group’s current wind farms are dependent on stable patterns of wind, operations and maintenance undertaken by Suzlon Energy Limited (“Suzlon”), grid connectivity and other critical resources.

In the event that a critical resource was not available then this could affect the operation of a wind farm and have a knock-on effect on our revenue.
In mitigation of this risk, Mytrah uses independent consultants to conduct wind feasibility studies when evaluating projects and also use independent consultants to evaluate wind turbine generators supplied to our wind farms.

We also ensure periodic preventative maintenance is undertaken.

The Group is building an asset management team to ensure, and where possible enhance standards of asset management undertaken both internally for our self-build projects and those projects built and maintained by our turnkey partners. We are commissioning 100.5 MW of capacity from ReGen Power and 137.7 MW with Gamesa, diversifying our development and asset management risk. Delay in commissioning projects Construction projects are by their very nature complicated and subject to numerous factors that could cause a delay in the completion and commissioning of a wind farm.

The majority of our current projects and those under construction and at final stages of delivery are under contracts with Suzlon, and more recently, ReGen Power and Gamsea which have provisions that enable Mytrah to make claims for liquidated damages in the event there is a delay in commissioning a project.

In addition our projects are closely managed on a daily basis, with issues quickly escalated to senior levels within the organisation. Information Technology/Processing As the business expands and processes become increasingly automated, our IT requirements are growing and are now more critical to our operations.

We have an experienced IT team in place, ensuring systems are well maintained and our growing IT requirements are being fulfilled.

We have an SAP enterprise resource management software which is facilitating the expansion of the business and enhancing the quality of information available to our management and executive teams. Environmental Compliance Non-compliance with environmental legislation would expose the Group to various potential penalties and would run counter to our core values.

To mitigate this risk, the Group undertakes an environmental and social due diligence report for each project.

The majority of our environmental compliance activities are currently undertaken by Suzlon and Regen Power.

However Mytrah has the necessary expertise and procedures to ensure compliance with environmental legislation in respect to the commissioning of projects under our self-development strategy.

Compliance with environmental legislation is at the heart of our self-build development strategy. Managing Change The Group continues to be in a rapid growth phase and the Indian renewable energy sector is also one of rapid change, with new measures being introduced on a national and state level.

To mitigate this risk, the Group uses independent consultants and outsourced contractors where appropriate to ensure the Group’s activities can be scaled up or down as required on a timely basis and help ensure the business can be flexible in response to changes in the industry and the political and economic environment. Availability and cost of Financing The Group is reliant, at this early stage of its development, on the timely availability of senior debt and mezzanine financing in order to finance its ambitious asset roll-out schedule.

To mitigate this risk, the financing team has established relationships across a diverse range of finance providers in India, including The State Bank of India, which is a testament to the attractiveness of the Group’s business model and the strength of our management team.

Projects can also be financed from internal cash generation in the event that new debt financing becomes unavailable to the Group. The largest operational cost of the Group is the cost of debt.

The Group’s projects are financed by project based debt.

Management has structured the projects in such a way that debt is only drawn down once key development milestones are reached and the majority of debt is only drawn down once capacity is installed and it starts generating revenue.

The cost of debt is factored into each project at the evaluation stage to ensure it meets or exceeds our minimum IRR requirements.

As mentioned in the Chairman and CEO’s statement, the Board is also evaluating the possibility of a Business Trust Listing that would substantially or wholly pay down the Group’s debt. Strategy Review and Future Growth The Group’s business model is based on delivering wind assets at a competitive price whilst minimising development risk to generate value to shareholders.

The Group has agreements with three leading global wind turbine manufacturers, Suzlon Energy Limited (‘Suzlon’), Regen Power (“ReGen”) and Gamesa Wind Turbines Private Limited (‘Gamesa’).

As detailed above, we have also announced the proposed acquisition of 59.75 MW of operational assets subject to regulatory approval and formal documentation.

Over time we expect the fragmented renewable energy sector in India to consolidate, and the Group will continue to evaluate opportunities as and when they arise. With 309.9 MW of operational capacity now in place and an expected total of 600 MW during 2013, the Group has demonstrated its ability to deliver wind capacity at speed and at a competitive price, whilst firmly establishing credibility as a relative newcomer into the sector by being one of the largest wind IPPs in India since its incorporation two and a half years ago. Mytrah is not just intending to become the number one wind IPP in terms of scale in India, but also aims to be a competitive cost and value based operator in the country, in order to secure higher returns for shareholders.

It’s not just about scale, but about the quality, cost and performance of the assets to generate stable and long-term income streams.

Specifically, we aim to achieve this through a combination of achieving project costs below the market benchmark, innovative financing and attention to detail in site selection and project implementation cycles.

These will be significantly important and are key differentiating factors for the Group against its peers. During the financial year, in September 2012, we embarked on our first three projects with both Gamesa and Regen in the states of Karnataka, Andhra Pradesh and Tamil Nadu totalling 238.2 MW.

Following the completion of these sites Mytrah will have over 600 MW spread across six states and 16 projects providing both a portfolio effect from a risk perspective and as highlighted above reduced execution risk on future developments as the majority of these sites have the capacity to be significantly expanded. In September 2012, in order to focus management time on its core activities and in keeping with the Company’s strategy to outsoucre project development to de-risk the development of our projects, the Company entered into an agreement with Bindu Urja Infrastructure Private Limited (“BUIL”) for the provision of balance of plant services.

Pursuant to the agreement with BUIL, the Company finalised the re-deployedment of its plant and project management teams to,BUIL which has enabled the Group to de-risk the development of our projects. In addition to our existing assets we have secured a number of allotments with exclusive licenses, rights and concessions with the Governments of Andhra Pradesh in respect of approximately 2,800 MW, Karnataka for approximately 1,600 MW and Gujarat for 1,000 MW.

The acquisition of high quality development assets is a strategic priority for the long-term sustainability of the business.

The availability of suitable land in the wind-rich states is a valuable and finite resource and these agreements and any future agreements with other wind rich States are a strategic priority for the long-term sustainability of the business and provides a competitive advantage and a future engine for growth. As at the period-end, our allotments and concessions secured across wind-rich locations in states in western and southern India, which include relevant leases and direct allotments, licenses and sanctions from the respective state authorities for the installation of wind power generation farms, are at an estimated capacity of up to 8,000 MW. In addition to the acquisition of future land assets, we have continued the installation of wind masts to collect more wind data across our various sites and we now have 122 masts spread across all wind rich states. Our existing development pipeline is expected to take us to a total of 1,500 MW during 2015 and we look forward to providing further updates on our development activities and more as the year progresses. Operational review Operational Overview:- The Group currently has seven projects fully developed and connected to the grid totalling to 309.9 MW of installed capacity as set out below: Project Location State Capacity (MW) Tejva Rajasthan 42.0 Mahidad Gujarat 25.2 Chakla Maharashtra 39.0 Kaladonger Rajasthan 75.6 Jamanwada Gujarat 52.5 Sinner Maharashtra 12.6 Vajrakarur Andhra Pradesh 63.0
Total 309.9
Subsequent to the period end and following the announcement of the proposed acquisition of 59.75 MW, which remains subject to regulatory approval and formal documentation, we repositioned the timing of some of our development pipeline which included 24 MW at Gotne in Maharashtra and the movement of 31.25 MW at Sautada in Maharashtra into the Company’s 2014- 2015 development pipeline.

This has been done at no cost to the Company. The Board believes that one of the significant advantages of the Group’s business model is its ability to adapt by adjusting the size and locations of individual projects.

We are aware of the many well reported cases of significant delays within the Indian infrastructure market and consider our ability to redeploy capital without any additional cost and avoiding being tied into delayed projects with rising costs a significant and unique advantage that Mytrah has over the majority of its competitors.
The assets currently under development and due for completion in stages during 2013 are as follows:-
Project Location State Capacity (MW) Burgula Andhra Pradesh 37.4 Savalsang Karnataka 100.3 Vagarai Tamil Nadu 100.5
Total 238.2
I am also pleased to inform that the Group’s strategy of holding the project and turbine prices generally constant over a long period of time is now playing out as there has been positive momentum on the regulatory side in terms of feed in tariffs; Andhra Pradesh has increased the tariff for wind power projects from Rs 3.50 per kWh to Rs 4.70 per kWh, Gujarat has increased its tariff to Rs 4.15 per kWh and recently Maharashtra State Electricity Board announced a revised tariff structure ranging up to Rs.

5.81 per kWh. In addition, the Rajasthan State Electricity Regulatory Commission has issued a tariff order determining the tariff for wind power plants as Rs.

5.46 per KwH and Rs.

5.73 per Kwh for ”Jaisalmer and Barmer” districts respectively.

This will have a positive impact on the Group’s future plans and portfolio.

The Group also expects the state of Karnataka to increase their tariffs in the near term by passing a judgment in response to the petitions filled in Karnataka Electricity Regulatory Commission by all the major Wind associations of the country; again providing significant benefit to the Group’s future portfolio as any increases in the feed in tariff will have a favorable impact on the Company’s future projects. Of our existing projects only 16.8 MW have off take agreements related to the Renewable Energy Certificate Market (“REC”).

The market for REC trading has been subdued with trading occurring at the floor price in limited volumes.

The Company is pleased that its decision to enter into long term PPA’s for the majority of its assets has proved correct at this stage and provides a very high visibility of revenues and profitability for the duration of those contracts.

In addition as highlighted above in the Chairman and CEO’s statement, we expect that about 20% of our portfolio by the end of 2013 will be selling power under the Group Captive scheme, this has the effect of leveraging those assets into future increases in the power price.
Depreciation of the Indian Rupee against the US dollar of approximately 7.0% during the period, has not impacted the Company’s performance at the India level.

This is primarily due to all capital assets being procured in Indian Rupees as well as all loan liabilities being contracted in Indian Rupees.

As a result, the weakening of the Indian Rupee against all major currencies is not expected to have any economic or cash impact on the Group and its business. During the period we have seen the average age of our trade receivables fall from 75 days to 49 days.

This is a reflection of the improved financial position of many State Electricity Boards following the government refinancing announced in September 2012 and the increase in electricity prices across the sector. Market Environment There continues to be a significant shortage of power supply in India.

Although India’s development in electricity generation has increased significantly over the past decade, the development of new power generation facilities and increases in electricity generation has not kept up with the increase in demand for electricity.

This is in part due to India’s dependence on thermal sources for meeting its power requirements.

As of April 2013, more than 67% of India’s installed power generation capacity was from thermal sources, primarily coal-fuelled power plants, and these sources represented 83% of India’s electricity generation.

However, thermal power plants in India have experienced challenges in meeting generation targets primarily due to an inadequate supply of coal produced in India as a result of low productivity and infrastructure constraints and the increasing cost of coal imports caused by, among other things, a weakening Indian Rupee.

As a result, India has experienced, and is currently facing, a significant power supply deficit.

This power deficit was 8.5% and 8.7% in 2011-12 and 2012-13, respectively, with all states facing an energy shortage.

With some 50% of rural areas not having access to the electricity grid, current electricity consumption per capita at only 25% of the Global average and with urbanisation expected to increase from 28% to 41% by 2030, the energy sector in India represents a significant opportunity underpinned by a substantial capacity deficit. Indeed, the demand for electricity in India is expected to continually grow by some 7% compounded annual over the next 10 years.

The current Five Year plan called for an increase in total generation capacity to 310 GW by 2017.

It is expected that this target will not be met with an estimated shortfall of between 55 GW – 60 GW by 2017.

The country’s installed capacity is approximately 214 GW and with the well-publicised difficulty in delivering cost-effective fossil fuel based power, Mytrah is in a strong position to benefit as the deficit continues to grow.

Due to the above mentioned supply issues, recent advances in wind turbine technology and the opening of the electricity market to the private sector, in certain instances the cost of wind power in India has reached ‘Grid Parity’ with traditional thermal power generation.

This is particularly evident in Mytrah’s case as the capital cost of our assets is estimated to be the lowest in the industry.
The fundamental market continues to move advantageously for Mytrah.

As highlighted above, over the last 8 months we have recently seen significant increases in long-term tariffs for wind generated electricity across all of our principal states while our project and asset prices remained at similar levels.

We believe we will continue to see increases in power tariffs flowing through to energy producers as the underlying prices charged to end consumers have increased and as India tries to address its continued significant power shortage. On 1 April 2012, the Generation Based Incentive (“GBI”) scheme expired.

However, in the recent Budget session for 2013-14, the Finance Minister announced the reintroduction of the GBI scheme.

Details of the new GBI scheme are yet to be announced by the government.

Several of our projects which are at an advanced stage of development and are expected to be commissioned during 2013 will benefit from this scheme. Whilst GDP growth in India has slowed over the last year it is still estimated to be 5%.

In April 2012, the Reserve Bank of India cut interest rates by 0.5% and a further 0.25% cut in September 2012.

Although the Indian Rupee and inflation targets remain under pressure, we believe there is potential for further rate cuts over the coming year.

As interest on our debt is our main operational cost, any reduction in interest rates provides a significant benefit to Mytrah Corporate In order to support our rapid development, in December 2012 we were pleased to appoint Investec Bank as our Joint Broker alongside Mirabaud Securities.

We believe that Investec’s involvement will help us fulfil our growth potential. The Board is committed to high levels of corporate governance, demonstrated by the broad compliance with the Quoted Companies Alliance Corporate Governance Guidelines for Smaller Quoted Companies (“QCA Code”). The Board appointed KPMG as auditors in place of Deloitte in November 2012, following an evaluation of a number of vendors by management and a final recommendation from the Audit Committee. In November 2012, the Board reduced in size to three directors, Ravi Kailas (Chairman & CEO), Rohit Phansalkar (Independent non-executive) and Russell Walls (Senior independent non-executive) in order to improve operating efficiencies. Human Capital At Mytrah, our core values drive our valuations.

We aspire to be considered as an employer of choice, and thereby have fostered high working standards and positive employee relations.

Our work culture is inclusive, where we respect and value individual differences.
Health, safety and wellbeing As part of our Health Series initiative, the Company continued its investments in various initiatives starting from comprehensive health insurance for its employees to regular health check-ups.

We have implemented a Safety Health and Environment Policy (SHE) to ensure safety of our employees at project sites.
Compliance HR tracks the changes in labour laws in the locations where we have a presence.

We also ensure that there is continued emphasis on developing guidelines and approaches for HR governance and compliance in this phase of rapid growth. Corporate and Social Responsibility (“CSR”) All CSR activities through out the lifecycle of our turnkey projects are undertaken by our turnkey suppliers, namely Suzlon and more recently, ReGen Power.

These activities are monitored internally. As we initiate our self-development projects, Mytrah is responsible for CSR activities before and after the construction phase (during which, the manufacture is responsible for CSR activities).
We have engaged independent third party expertise in this field to assist in the development of our own comprehensive social environmental, health and safety management system alongside establishing detailed standards, policies and procedures and internal accountabilities and governance.

These standards, policies and procedures are designed to ensure Mytrah complies with the following standards (which are consistent with local regulatory requirements and guidelines, both generic and sector specific, issued by the World Bank Group):- · ISO 14001 (Environmental Management Systems) · ISO 18001 (Occupational Health & Safety) · ISO 9001 (Quality Management Systems Compliance with our internal standards, policies and procedures will be monitored by a management steering committee chaired by the chief operating officer and also subject to quarterly review by internal audit and at least annually by an independent third party. Outlook This has been another period of transformational growth for Mytrah where we continue to demonstrate our unrivalled ability to execute our strategy of generating reliable and long-term revenue streams and enhancing shareholder value through rapid execution at scale of high quality assets at a competitive price whilst managing development risk.

We will continue to be highly active in our pursuit to generate shareholder value by evaluating the Proposed Listing detailed in the Chairman and CEO’s statement, seeking attractive opportunities and further raising our profile as the leading wind IPP in India to achieve our ambitious and unprecedented rollout schedule. Finally, I would like to take this opportunity to welcome our new shareholders and once again thank all our shareholders, management, advisors and associates for their support as we executed our strategy over the period.
Ravi Kailas Chairman and CEO 24 June 2013
Consolidated income statement for the period ended 31 December 2012
Note
Period ended 31 December 2012 Year ended 31 March 2012
USD USD
Continuing operations
Revenue 6
30,922,696 6,973,960
Cost of sales
(5,320,355) (3,447,415)
Gross profit
25,602,341 3,526,545
Other operating income 6
7,993,199 -
Administrative expenses
(4,119,828) (4,323,041)
Operating profit/(loss) 7
29,475,712
(796,496)
Finance income 10
409,624 1,296,425
Finance costs 11
(16,664,459) (4,702,595)
Profit/(loss) before tax
13,220,877 (4,202,666)
Income tax (expense)/credit 12
(1,194,583) 1,370,067
Profit/(loss) for the period/ year from continuing operations attributable to the equity holders of the Company
12,026,294 (2,832,599)
Earnings/ (loss) per share from continuing operations
Basic 13
0.0735 (0.0173)
Diluted 13
0.0735 (0.0173)
The accompanying notes form an intergral part of these consolidated financial statements
Consolidated statement of comprehensive income for the period ended 31 December 2012
Period ended 31 December 2012 Year ended 31 March 2012
USD USD
Profit/(loss) for the period/year from continuing operations attributable to the equity holders of the Company
12,026,294 (2,832,599)
Other comprehensive loss Foreign currency translation adjustments
(5,867,292) (12,021,898) Change in fair value of available for sale financial instruments
(11,230) 31,656
Other comprehensive loss for the period/year
(5,878,522)
(11,990,242)
Total comprehensive income/(loss) for the period/ year attributable to the equity holders of the Company
6,147,772 (14,822,841)
The accompanying notes form an intergral part of these consolidated financial statements
Consolidated statement of financial position as at 31 December 2012
Note
31 December 2012
31 March 2012
USD USD Assets
Non-current assets
Intangible assets 14
699,259 64,881 Property, plant and equipment 15
358,174,528 371,212,559 Other non-current assets 16
44,696,236 46,986,457 Held-to-maturity investments 17
- 964,281 Deferred tax assets 18
3,089,279 2,082,787
________________ ________________ Total non-current assets
406,659,302 421,310,965
________________ ________________ Current assets
Trade receivables 19
7,187,329 1,779,129 Other current assets 20
4,230,125 7,235,260 Available for sale investments 17
3,191,023 4,787,630 Cash and bank balances 21
9,469,106 3,151,975
________________ ________________ Total current assets
24,077,583 16,953,994
________________ ________________ Total assets
430,736,885 438,264,959
========= ========= Liabilities
Current liabilities
Borrowings 22
16,402,362 2,281,959 Trade and other payables 23
27,108,668 159,224,484 Retirement benefit obligations 24
1,214 22,795 Tax liabilities 12
2,201,272 480,717
________________ ________________ Total current liabilities
45,713,516 162,009,955
________________ ________________ Non-current liabilities
Borrowings 22
252,036,630 150,392,048 Liability component of compulsorily convertible preference shares 25
11,298,416 11,435,270 Derivative financial instruments 22 & 25
2,947,030 2,779,637 Retirement benefit obligations 24
4,242 43,166
________________ ________________ Total non-current liabilities
266,286,318 164,650,121
________________ ________________ Total liabilities
311,999,834 326,660,076
________________ ________________ Net assets
118,737,051 111,604,883
________________ ________________ Equity
Share capital 26
72,858,278 72,858,278 Retained earnings 27
7,443,230 (4,583,064) Other reserves 28
(16,959,629) (12,065,503)
________________ ________________ Equity attributable to owners of the Company
63,341,879 56,209,711 Non-controlling interests 29
55,395,172 55,395,172
________________ ________________ Total equity
118,737,051 111,604,883
========== ========== These financial statements were approved by the Board of Directors and authorised for use on 24 June 2013 Signed on behalf of the Board of Directors by: Ravi Kailas Russell Walls Chairman and CEO Director The accompanying notes form an intergral part of these consolidated financial statements
Share capital Re-translation reserve Equity- settled- employee- benefits reserve Fair value reserve Retained earnings Non-controlling interests Total
USD USD USD USD USD USD USD Balance as at 31 March 2011 72,858,278 (933,080) 169,772 - (1,750,465) - 70,344,505 Loss for the year - - - - (2,832,599) - (2,832,599) Other comprehensive loss for the year:
Foreign currency translation adjustments (note 28) - (12,021,898) - - - - (12,021,898) Change in fair value of available for sale financial instruments (note 28) - - - 31,656 -
31,656 Issue of CCPS (note 25 and 29) - - - - - 57,937,332 57,937,332 Deferred tax on share issue costs (note 18) - -
- - (651,753) (651,753) Share issue costs on issue of CCPS (note 25 and 29) - - - - - (1,891,056) (1,891,056) Issue of equity shares of MEIL to IIF (note 25 and 29) - - - - - 649
649 Equity settled share based payments (note 33) -
688,047 - - - 688,047 Balance as at 31 March 2012 72,858,278 (12,954,978) 857,819 31,656 (4,583,064) 55,395,172 111,604,883
Profit for the period - - - -
12,026,294
-
12,026,294 Other comprehensive loss for the period:
Foreign currency translation adjustments (note 28) - (5,867,292) - - - - (5,867,292) Change in fair value of available for sale financial instruments (note 28) - - - (11,230) - - (11,230)
Equity settled share based payments (note 33) - - 984,396 - - - 984,396 Balance as at 31 December 2012 72,858,278 (18,822,270) 1,842,215 20,426 7,443,230 55,395,172 118,737,051
Consolidated statement of changes in equity for the period ended 31 December 2012
The accompanying notes form an intergral part of these consolidated financial statements Consolidated statement of cash flows for the period ended 31 December 2012
Period ended 31 December 2012 Year ended 31 March 2012
USD USD
Cash flows from operating activities
Profit/(loss) from operations before tax
13,220,877 (4,202,666)
Adjustments:
Depreciation and amortisation
5,593,722 3,282,153 Interest on fixed deposits and on non convertible debenetures
(203,052) (764,863) Finance costs
16,527,605 4,702,595 Fair valuation of derivative financial instruments
313,367 283,794 Gain on sale of mutual funds
(519,939) (815,356) Equity settled employees benefits
(984,396) (688,047) Unrealized foreign exchange loss/(gain)
6,462,370 (2,354,961)
Operating cash flows before working capital changes
40,410,554 557,351 Changes in working capital:
Trade receivables
(2,658,022) (7,225,851) Other assets
(1,584,553) (5,527,671) Trade and other payables
(3,279,839) 3,566,978
Cash generated/(used in) from operating activities
32,888,140 (9,743,895) Taxes paid
(460,293) (49,772) Net cash generated/ (used in) from operating activities
32,427,847
(9,793,667)
Cash flows from investing activities
Purchase of property, plant and equipment
(134,301,589) (225,043,077) Redemption of (investment in) mutual funds (net)
2,795,430 (5,380,924) Finance income received
225,054 856,882
Cash used in investing activities
(131,281,105) (229,567,119)
Cash flows from financing activities
Proceeds from the issue of CCPS
- 69,932,181 Proceeds from borrowings
162,803,732 164,468,985 Repayment of borrowings
(38,409,829) - Interest paid
(19,585,430) (7,868,510)
Cash generated from finance activities
104,808,473 226,532,656
Net increase in cash and cash equivalents
5,955,215 (12,828,130)
Cash and cash equivalents at beginning of the period/year
3,151,975 16,861,883 Foreign exchange effect on cash and cash equivalents
361,916 (881,778)
Cash and cash equivalents at end of the period/ year
9,469,106 3,151,975
The accompanying notes form an intergral part of these consolidated financial statements
Notes to the consolidated financial statements for the period ended 31 December 2012 1.

General information Mytrah Energy Limited (“MEL” or the “Company”) is a non-cellular company liability limited by shares incorporated on 13 August 2010 under the Companies (Guernsey) Law, 2008 and is listed on the Alternate Investment Market (‘AIM’) of the London Stock Exchange.

The address of the registered office is Anson Place, Mill Court, La Charroterie, St.

Peter Port, Guernsey GY1 1EJ.

Mytrah Energy Limited has the following subsidiary undertakings, (together the “Group”), all of which are directly or indirectly held by the Company, for which consolidated financial statements are being prepared, as set out below: Subsidiary Country of incorporation or residence
Date of Incorporation Proportion of ownership interest (per cent.) Proportion of voting power (per cent.) Activity
Functional currency Bindu Vayu (Mauritius) Limited (“BVML”) Mauritius March 29, 2012 100 100 Holding company USD Mytrah Energy (India) Limited (“MEIL”) India November 11, 2009 99.99 99.99 Operating company INR Bindu Vayu Urja Private Limited (“BVUPL”) India January 5, 2011 99.99 99.99 Operating company INR Mytrah Vayu (Pennar) Private Limited (“MVPPL”) India December 21, 2011 99.99 99.99 Operating company INR Mytrah Vayu (Krishna) Private Limited (“MVKPL”) India June 18, 2012 99.99 99.99 Operating company INR Mytrah Vayu (Manjira) Private Limited (“MVMPL”) India June 18, 2012 99.99 99.99 Operating company INR Mytrah Vayu (Bhima) Private Limited (“MVBPL”) India June 22, 2012 99.99 99.99 Operating company INR Mytrah Vayu (Indravati) Private Limited (“MVIPL”) India June 22, 2012 99.99 99.99 Operating company INR Mytrah Engineering Private Limited (“MEPL”) India March 30, 2012 99.99 99.99 Operating company INR Mytrah Infrastructure Private Limited (“MIPL”) India March 29, 2012 99,99 99.99 Operating company INR
The principal activity of the Company is to operate wind energy farms as a leading independent power producer, and to engage in the sale of energy to the Indian market through the Company’s subsidiaries. These financial statements are presented in US dollars (USD).

Foreign operations are included in accordance with the policies set out in note 3.
Notes to the consolidated financial statements for the period ended 31 December 2012 (continued) 2.

Adoption of new and revised accounting standards and interpretations In the current period, the following new and revised standard and interpretation have been adopted by the Group, none of which had a material impact on the current period or prior period reported results or financial position: Standard or interpretation Effective for reporting periods starting on or after IAS 12 Income Taxes Limited scope amendment (recovery of underlying assets) Annual periods beginning on or after 1 January 2012
At the date of authorisation of the financial statements, the following standards and interpretations, have not been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been endorsed by the EU). Standard or interpretation Effective for reporting periods starting on or after IFRS 1 Severe hyperinflation and Removal of fixed dates for first-time adopters; Annual periods beginning on or after 1 January 2013 IFRS 7 Amendments to IFRS 7 and IAS 32 – Offsetting Financial Assets and Financial Liabilities Annual period beginning on or after 1 January 2013 and 1 January 2014 IFRS 9 Financial Instruments Annual periods beginning on or after 1 January 2015 IFRS 10 Consolidated Financial Statements Annual periods beginning on or after 1 January 2013 IFRS 11 Joint Arrangements Annual periods beginning on or after 1 January 2013 IFRS 12 Disclosure of Interests in Other Entities Annual periods beginning on or after 1 January 2013 IFRS 13 Fair Value Measurement Annual periods beginning on or after 1 January 2013 IAS 1 Presentation of Financial Statements Amendments resulting from May 2010 Annual Improvements to IFRSs Annual periods beginning on or after 1 January 2013 IAS 1 Presentation of Financial Statements Amendments to revise the way other comprehensive income is presented Annual periods beginning on or after 1 July 2012 IAS 19 Employee Benefits — Amended Standard resulting from the Post-Employment Benefits and Termination Benefits projects Annual periods beginning on or after 1 January 2013 IAS 27 Consolidated and Separate Financial Statements — Reissued as IAS 27 Separate Financial Statements (as amended in 2011) Annual periods beginning on or after 1 January 2013 IAS 28 Investments in Associates — Reissued as IAS 28 Investments in Associates and Joint Ventures (as amended in 2011) Annual periods beginning on or after 1 January 2013
Based on the Group’s current business model and accounting policies, Management does not expect that the adoption of these standards or interpretations will have a material impact on the financial statements of the Group.

The Group does not intend to apply any of these pronouncements early.
Notes to the consolidated financial statements for the period ended 31 December 2012 (continued) 3.

Significant accounting policies The Group accounting policies are summarized below: Basis of accounting These consolidated financial statements have been prepared in accordance with and comply with IFRS as adopted by the European Union. The consolidated financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial instruments.

Historical cost is generally based on the fair value of the consideration given in exchange for assets. The Directors have taken advantage of the exemption offered by Section 244 (5) of the Companies (Guernsey) Law, 2008 from preparation of individual financial statements of the Company as the Company is preparing and presenting consolidated financial statements for the financial period ended 31 December 2012 and the year ended 31 March 2012. Consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 31 December (previously 31 March) each year.

Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

All intra-group transactions, balances, income and expenses are eliminated on consolidation. Going concern The Directors have considered the financial position of the Group, its cash position and forecast cash flows for the 12 months period from the date of signing these financial statements when considering going concern.

The Directors have, at the time of approving the financial statements,a reasonable expectation that the Group have adequate resources to continue in operational existence for the foreseeable future.

Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. Foreign currencies The consolidated financial statements are presented in USD, which is the presentational currency of the Company, as the financial statements will be used by international investors and other stakeholders because the Company’s shares are listed on AIM.

The functional currency of the parent company is sterling (“GBP”).The functional currency of the subsidiaries is mentioned in note 1. In preparing the financial statements of each individual group entity, transactions in currencies other than the entitys functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date.

Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined.

Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in income statement in the period.

For the purposes of presenting consolidated financial statements, the assets and liabilities of the Groups foreign operations are translated into US dollars (USD) using exchange rates prevailing at the end of each reporting period.

Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used.

Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in equity. The USD: INR exchange rates used to translate the INR financial information into the presentation currency of USD were as follows:
31 December 2012 31 March 2012 Closing rate
54.6890 51.8521 Average rate for the period/ year
54.3772 48.1335
Notes to the consolidated financial statements for the period ended 31 December 2012 (continued) 3.

Significant accounting policies (continued) Foreign currencies (continued) The GBP: USD exchange rates used to translate the GBP financial information into the presentation currency of USD were as follows:
31 December 2012 31March 2012
Closing rate
1.6153 1.5987 Average rate for the period/ year
1.5895 1.5963
Revenue recognition Revenue is recognised when it is probable that future economic benefits will flow to the entity and these benefits can be measured reliably. Sale of electricity Revenue from the sale of electricity is recognised when earned on the basis of contractual arrangements and reflects the number of units supplied in accordance with joint meter readings undertaken on a monthly basis by representatives of the buyer and the Group at rates stated in the contract or as applicable, net of any actual or expected trade discounts. Generation-based incentives Revenue from generation-based incentives are recognised based on the number of units supplied, when registration under the relevant programme has taken place and its eligibility criteria are met under the Indian Renewable Energy Development Agency Limited - Generation Based Incentive scheme. Interest income Interest income is recognised when it is probable that the economic benefits will flow to the Group and the amount of revenue can be measured reliabily.

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.
Financial instruments Financial instruments Financial assets and financial liabilities are recognised in the consolidated statement of financial position when the Group becomes a party to the contractual provisions of the instrument. Financial assets All financial assets are recognised and derecognised on trade date where the purchase or sale of a financial asset is under a contract whose terms require delivery of the financial asset within the timeframe established by the market concerned, and are initially measured at fair value, plus transaction costs. Financial assets within the scope of IAS 39 are classified into the following specified categories as: • loans and receivables • financial assets at fair value through profit or loss • available-for-sale financial assets • held-to-maturity investments The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Following the disposal of investments classified as held to maturity during the period, Management will not classify such assets as held for this purpose in line with provisions of IAS 39.
Notes to the consolidated financial statements for the period ended 31 December 2012 (continued) 3.

Significant accounting policies (continued) Financial instruments (continued) Effective interest rate method The effective interest rate method is a method of calculating the amortised cost of a financial asset held at amortised cost and of allocating interest income over the relevant period.

The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. Investment income is recognised on an effective interest basis for debt instruments. Loans and receivables (including cash and bank balances) Cash and bank balances and trade and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’.

Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. Cash and bank balances comprise cash in hand and cash at bank or deposits.

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash, which are subject to an insignificant risk of change in value. Financial assets at fair value through profit and loss Financial assets at fair value through profit or loss include financial assets that are held for trading or are designated by the entity to be carried at fair value through profit or loss upon initial recognition.

Financial assets at fair value through profit and loss are carried in the statement of financial position at fair value with gains or losses recognised in the income statement. Available-for-sale financial assets (“AFS”) Investment in mutual funds held by the Group that are traded in an active market are classified as being AFS and are stated at fair value.

Gains and losses arising from changes in fair value are recognised in other comprehensive income and accumulated in fair value reserve with the exception of impairment losses, interest calculated using the effective interest method and foreign exchange gains and losses on monetary assets, which are recognised directly in the income statement. Held-to-maturity investments (“HTM”) Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity.

Investments are classified as held-to-maturity if it is the positive intention and ability of Group’s management to hold them until maturity.

Held-to-maturity investments are subsequently measured at amortised cost using the effective interest method.

This method uses an effective interest rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Gains and losses are recognised in the consolidated statement of comprehensive income when the investments are derecognised or impaired, as well as through the amortisation process.

In a



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