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You Are On : Home | Company Profile | Directors Reports

Directors Reports

Talwandi Sabo Power Ltd.

March 2015

Disclosure in board of directors report explanatory

INSIDE THIS REPORT
Corporate Overview
-
3
Management Overview
-
5
Financial Highlights
-
7
Summary of Operations
-
7
Industry Scenario
-
8
Capital and Finance
-
11
Directors and Key Managerial personnel
-
12
Details of Board and Committee Meetings
-
13
Directors Responsibility Statement
-
15
Auditors report:-
-
15
Statutory Auditors Report
-
15
Secretarial Auditor Report
-
16
Human Resource
-
16
Risk Management Policy
-
16
Vigil Mechanism
-
17
Policy on appointment and Remuneration of Directors
-
17
Internal Financial Control
-
18
Evaluation of the Board
-
18
Conservation of Energy, Technology absorption, Foreign Earnings and Outgo
-
19
Disclosure under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
-
20
Acknowledgements
-
21
Annexures to the Board Report
-

Annexure A ï¿½ Extract of Annual Report
-
19
Annexure B ï¿½ CSR Annual Return
-
27
Annexure C ï¿½ Statutory Auditors Report
-
29
Annexure D ï¿½ Secretarial Audit Report
-
32
Annexure E- Related Party Transactions
-
35

TalwandiSabo PowerLimited (TSPL), a100%subsidiaryof Sesa Sterlite Limited (formerly known as Sesa Goa Limited),implementing thelargest1980(3x660)MWGreenfieldPowerProjectinPunjab,India,withallconsentsandapprovalsinplace.

Sesa Sterlite Limited(formerlyknownasSesaGoaLimited),aVedantaGroupCompany,isoneoftheworld'slargestglobaldiversifiednaturalresourcemajors,withoperationsacrosszinc-lead-silver,oilandgas,ironore,copper,aluminumandcommercialpower.

VedantaResourcesplc(ï¿½Vedantaï¿½)isaLondonStockExchangelistedFTSE100diversifiedmetalsandminingmajorwithrevenuesinexcessofUSD12 billion.ThegroupproducesAluminum,Copper,Zinc,Lead,Ironoreandcommercialenergy.VedantahasoperationsinIndia,ZambiaandAustraliaandastrongorganicgrowthpipelineofprojects.Withanempoweredtalentpoolof30,000employeesglobally,Vedantaplacesstrongemphasisonpartneringwithallitsstakeholdersbasedoncorevaluesofentrepreneurship,excellence,trust,inclusivenessandgrowth.

VedantaGroupisoneoftheMajorplayersinPowerSectorinthecountrywithoperatingandunderprojects(CPPandIPP),thermalpowercapacityofabout10,000MW.

ABOUTTHEPROJECT

TalwandiSaboPowerLimited (TSPL)isimplementinga stateoftheartcoalbasedsupercriticalthermalpowerplantinDistrictMansa,Punjab,India.ThiswillbethefirstSupercriticalunitandoneofthelargestGreenfieldpowerprojectintheStateofPunjab.Powergeneratedfromthisprojectshallbesuppliedtothe Punjab State Power Corporation Limited (formerly known as PunjabStateElectricityBoard).

TSPL will use energyefficient and cleanersupercriticaltechnology forthe electricitygeneration.Super-criticaltechnologyutilizessteamattemperatureabovethecriticalpointofwater.Thetechnologygeneratessameamountofelectricityusinglesscoal.Theprojectactivitywillthusreduce consumption offossil fuel(coal) as comparedto theconventional sub criticaltechnologythusmakingitanenvironmentalfriendlyandcostefficienttechnology.

OurBoardofDirectors

Mr.S. K. RoongtaChairman

Non-ExecutiveDirector

Member: - NominationandRemunerationCommittee, Corporate SocialResponsibilityCommittee

Mr.M.Siddiqi

Non-ExecutiveDirector

Member:-AuditCommittee,Corporate SocialResponsibilityCommittee

Mr.G. S. KangIndependentDirector Chairman - AuditCommittee

Member:-Corporate SocialResponsibilityCommittee,Nominationand RemunerationCommittee

Ms.MalaTodarwalIndependentDirector Member:-AuditCommittee,Nomination and Remuneration Committee

Ms.PoojaSomani

Additional Director

BoardofDirectorsandManagementoftheCompany BoardCommittees

Chairman Non-ExecutiveDirector

Mr.S.K.Roongta Mr.S.K.Roongta

Mr.M.Siddiqi

Independent Director Ms.PoojaSomani (Add. Dir.)

Mr.G.S. Kang

Ms. MalaTodarwal

ChiefOperatingOfficer ChiefFinancialOfficer

Mr.Philip Chacko Mr. AmitAgarwal

CompanySecretaryandComplianceOfficer

Mr.Pankaj Chauhan

AuditCommittee NominationandRemunerationCommittee

Mr.G.S. Kang(Chairman) Mr. S.K. Roongta

Mr.M. Siddiqi Mr.G.S. Kang

Ms.MalaTodarwal Ms.MalaTodarwal

CorporateSocialResponsibilityCommitteeMr.S. K.Roongta (Chairman)Mr.M.Siddiqi

Mr.G.S.Kang

BankersandTrustee SolicitorsandAuditors

Bankers Debenture Trustee

PunjabNational bank ILandFSTrust Company Limited

AxisBankLimited ILandFS Financial Centre

ICICIBankLimited PlotNo. C-22,G BlockBandra-

InduslndBankLimited KurlaComplex,BandraEastKotak MahindraBankLimited Mumbai-400051

StandardCharteredBankLimited Maharashtra

RegisteredOffice RegistrarandTransferAgent
StateBankof India CIN:U66020MH1995PLC095507YESBankLimited

VillageBanawala,Mansaï¿½TalwandiSaboRoadDistrictMansa,Punjabï¿½151302,India

CIN:U40101PB2007SGC031035

Tel. 91-1659-248000Fax.01659248083

EMail:-tspl.investor@vedanta.co.inWebsite:www.tsplindia.co.in

Solicitors: Auditors:

JSagarandAssociates Deloitte Haskinsand SellsLLPPrexis Counsels KPMGIndia

Trilegal PKFSridharandSanthanamVAP andAssociates

DevinderKumarAssociates

KarvyComputersharePrivateLimited,KarvySeleniumTowerB,Plot31-32,

Gachibowli,FinancialDistrict,Nanakramguda,Hyderabad500032,IndiaTel:+9140 67161700

TollFreeNo.: 1800425 8998Fax: +91 40 23114087

Website:www.karvy.com

DearShareholders,

BOARD'SREPORT

OnbehalfoftheBoardofDirectors,itisourpleasuretopresenttheEighthAnnualReporttogetherwiththeAuditedStatementofAccountsofTalwandiSaboPowerLimited(ï¿½theCompanyï¿½)fortheyearendedMarch31,2015.FINANCIALPERFORMANCE

ThesummarizedstandaloneresultsofyourCompanyaregiveninthetablehereinbelow:-Rs.inlacs
Particulars
Financial Year ended
Standalone
31/03/2015
31/03/2014
Total Income
49,660.70
-
Profit/ (Loss) before Interest, Depreciation and Tax (EBITDA)
9,825.69
(4,688.79)
Finance Charges
(8,486.4)
-
Depreciation
(5,199.02)
-
Provision for Income Tax
(Including for earlier years)
-
-
Net Profit/(Loss) After Tax
(3,859.72)
-
Profit/ (Loss) brought forward from previous year
(8,653.79)
(3,964.50)
Amount transferred consequent to scheme of merger
-

Profit/(Loss) carried to Balance Sheet
(12,513.52)
(8,653.79)

*previousyearfigureshavebeenregrouped/rearrangedwherevernecessary.

SUMMARYOFOPERATIONS

Duringtheyear,theCompanyhascommissioned First Unit (i.e. unit # 2 as per PPA).DuringtheyearnetrevenueandPAToftheCompanywasRs.49,656.77lacsandRs.(3,859.72)lacsrespectively.Dividend

OwingtolossesfortheFinancialYear2014-15yourDirectorshavenotrecommendedadividendforFY2014-15.

BusinessReview/StateoftheCompany'saffairs

DuringtheFinancialYear2014-15theCompanyhascommissioneditsFirstUnitandstartedcommercialproductionw.e.f05thofJuly,2014from00:00:00Hrs.Further,thefollowingeventsoccurredduringtheyear:-

ï¿½ ThefirstUnit(Unit#2)oftheplantstartedCommercialproduction.

ï¿½ TheCompanyincreaseditsAuthorizedCapitalfrom2,500Croreto4,000CroreatitsEGMdated06.11.2014.

ï¿½ TheArticlesandMemorandumofAssociationsoftheCompanyweremodifiedinlinewithCompaniesAct,2013.

ï¿½ CompanystartedsaleofFlyAshw.e.f.Feb,2015.

INDUSTRYSCENARIO

Aneconomy'sgrowth,developmentandabilitytohandleglobalcompetitionisalldependentontheavailability,reliabilityandqualityofthePower.AstheIndianeconomycontinuestosurgeahead,electrificationandelectricityserviceshavebeenexpandingconcurrentlytosupportthegrowthrate.Thedemandforpowerisgrowingexponentiallyandthescopeofgrowthofthissectorisimmense.

TheelectricitysectorinIndiahadaninstalledcapacityof267.6GWasofendMarch2015andgeneratedaround1048.5BUfortheperiodApril2014-March2015.Indiabecametheworld'sthirdlargestproducerofelectricityintheyear2013with4.8%globalshareinelectricitygenerationsurpassingJapanandRussia.

The Electricityproductionin India(excludingcaptivegeneration) stood at911.6 TWh inFY13,a4percentgrowthoverthepreviousfiscal.DuringFY14,electricityproductionstoodat967TWh.Furtherover theFY2007ï¿½2014, electricityproduction expandedata CAGR(Compound AnnualGrowthrate)of5.6percent.ThePlanningCommission's12thPlanprojectsthattotaldomesticenergyproductionwouldreach669.6milliontonnesofoilequivalent(MTOE)by2016ï¿½2017and844MTOEby2021ï¿½2022.

energyproductionwouldreach669.6milliontonnesofoilequivalent(MTOE)by2016ï¿½2017and844MTOEby2021ï¿½2022.

102
97.7
3
97.6
4
98.0
99.1
9
ElectricityProductioninIndia2014-2015
1200
1023
1048.403
930
975
967.15
1000
789.511
771.551
830.757811.143
855
876.887
912.056
800
Target
Achievement
%of target
%of growth
600
400
200
102.56
8.11
2011-12
7
.48
6.6
2009-10
5.56
2010-11
4.01
2012-13
6.04
2013-14
8.4
2014-15( UptoMar, 2015)*
0
* Provisional

* Source:CEA(CentralElectricityAuthority),Aranca Research;

Notes: FY - Indian FinancialYear(April-March), TWh - Terra WattHour

Installedcapacityfordifferentsourcesofpowerï¿½FY14(GW)
60
40
20
0
40.5
31.7
4.8
Thermal HydroElectric Renewable Nuclear
AsofApril2014,totalthermalinstalledcapacitystoodat168.4GW,whilehydroandrenewableenergyinstalledcapacitytotaled40.5GWand31.7GW,respectively.At4.8GW,nuclearenergycapacityremainedbroadlyconstantfromthatinthepreviousyear2014.Forthe12thFive-YearPlan,atotalof88.5GWofpowercapacityadditionistargeted;ofwhich,72.3GWconstitutesthermalpower,10.8GWhydropowerand5.3GWnuclearpowerThecapacityadditiontargetfor2014ï¿½15is842MWofhydropower,14.9GWofthermalpowerand2GWofnuclearpower.Totalcapacitytargetis17.8GW.

180
168.4
160

140

120

100

80

*Source:MinistryofCoal,NHPC,CEA,TheHindu,CorporateCatalystIndia,ArancaResearch

Notes:MW-Megawatt,GWï¿½Gigawatt

AmongthedifferentsourcesofpowerinIndia,theCAGRininstalledcapacityoverFY09ï¿½14was

12.3 %,19.7%,2.21%,4.6%forthermalpower,renewableenergy-thefastestamongallsourcesofpower,forhydropower,andfornuclearpowerrespectively.

Thedemandforpowerinthestateisrisingsharplyonaccountofrapidlyincreasinguseofelectricalenergyforagriculturaloperations,rapidindustrialization,highlivingstandardofresidentsandintensiveruralelectrificationprogram.

180
160
140
120
100
80
Comparisonof installedcapacity(GW)
                                                                                                                                                                             168
132
94
40
25
32
37
39
41
20
0
13
4
5        5
Nuclear                                Renewable
HydroElectric
Thermal
Endof 10thPlan        Endof 11thplan        FY 2014

*Source:CEA,Aranca Research,

Notes:Data forFY13 isason June 2014,CAGR - Compound AnnualGrowth Rate

IndustryOut-look

Theoutlookofthesectorinthelongrunremainspositivebecauseofthegrowingdemand-supplygapandthelowpercapitalconsumptionofelectricityinIndiaascomparedtotheworldaverage.The Company isideally placedtobereapthe benefitsoftheseinitiativesandbe akey player inStateofPunjab.

CAPITAL/FINANCE

The Company hasincreaseditsAuthorizedCapitalfrom 2,500Crore to 4,000Crore,whichwasapprovedbytheShareholdersatExtra-ordinarygeneralMeetingoftheCompanyheldon06thNovember2014.Ason31st March,2015,theissued,subscribedandpaidupsharecapitalofyourCompanystoodatRs.32,066,096,920.00/-,comprising3,206,609,692EquitysharesofRs.10/-each.

During theyear,the Company allotted706,609,692EquityShares offacevalue ofRs.10/-eachforatotalnominalvalueofRs.706.60Crores(approx.)onrights/preferential/privateplacementbasis.TheseEquitySharesrankspari passuinallrespectwiththeexistingEquitySharesoftheCompany.

Further,DuringtheYeartheCompanyhasalsoallotted8250SecuredRedeemableNon-ConvertibleDebenturesofRs.1,000,000/-each.TheBriefTermsofissueofSecuredRedeemableNon-ConvertibleDebenture(s)areasfollows:-

S. No.
Amount of Issue (in Crores)
Rate of Interest (per annum)
Date of Issue
Date of Allotment
1.
120.00
9.60%
16th September, 2014
16th September, 2014
2.
180.00
9.70%
16th September, 2014
16th September, 2014
3.
200.00
9.27%
11th November, 2014
11th November, 2014
4.
325.00
8.91%
27th March, 2015
27th March, 2015
5.
675.00
8.91%
*Already tied up for 1000 Cr NCD from SCB out of that 325 Cr allotted on 27th March, 2015 and balance 675 Cr will be allotted in April, 2015.

ExtractofAnnualReturn

Pursuanttosection92(3)oftheCompaniesAct,2013(ï¿½theAct')readwithrule12(1)oftheCompanies(ManagementandAdministration)Rules,2014,extractofAnnualReturnisannexedherewithasAnnexureA.

DIRECTORSANDKEYMANAGERIALPERSONNEL

Mr.MansoorSiddiqi,Non-ExecutiveDirectoroftheCompany,retirebyrotationattheforthcomingAnnualGeneralMeetingandbeingeligible,offerhimselfforreappointment.FurtherMr.S.K.RoongtacontinuestoholdofficeasChairmanandNon-ExecutiveDirectoroftheCompany.

Duringtheyear,Mr.G.S.KangandMs.MalaTodarwalhavebeen re-designated and appointed respectively, asanIndependentDirectorsforthefixedtermofthreeyears.Ms.PoojaSomaniwasappointedasAdditionalDirectoroftheCompany.FurtherMr.M.Siddiqiisretiring byrotationinaccordancewithCompaniesAct2013andbeingeligibleoffershimselfforre-appointment.

Also,Mr.ViralMehtahasresignedfromthepostofManageroftheCompanywitheffectfrom31stDecember,2014.Mr.ChetanShrivastavwasappointedasManageroftheCompany,witheffectfrom15thJanuary,2015,subjecttotheapprovalofShareholdersattheensuingGeneralMeetingoftheCompany.

Further,owingtotransferofMr.AnupAgarwaltoSterliteCopper,witheffectfrom12thJanuary,2015Mr.AmitAgarwalhasbeenappointedasChiefFinancialOfficeroftheCompany,witheffectfrom15thJanuary,2015,subjecttotheapprovalofShareholdersattheensuingGeneralMeetingoftheCompany.DetailsofBoardmeetings

Duringtheyear,2014-2015numberofBoardmeetingswereheld,detailsofwhicharegivenbelow:

Name of Directors / Date of Meeting
Mr. S. K. Roongta
Mr. M. Siddiqi
Mr. G. S. Kang
17th April, 2014
Y
Y
Y
17th July, 2014
Y
Y
Y
10th September, 2014
Y
Y
N
16th October, 2014
Y
Y
Y
4th December, 2014
Y
Y
N
15th January, 2015
Y
N
Y
25th February, 2015
Y
Y
N
31st March, 2015
Y
Y
N

CommitteesofBoard

Ason31st March,2015,thedetailsofcompositionoftheCommitteesoftheBoardofDirectorsareasunder:-

InlinewiththeprovisionsoftheCompaniesAct2013yourCompanyhasconstitutedNominationandRemunerationCommitteeandCorporateSocialResponsibilityCommittee.FurtherinlinewiththesaidprovisionstheCompanyhasalsoRe-constituteditsAuditCommittee.

Ason31stMarch,2015,theconstitutionoftheCommitteesoftheBoardofDirectorsandtheattendanceofMembersthereofareasunder:-AuditCommittee:TheexistingconstitutionofAuditCommitteeisasfollows:-

Sl. No.
Name
Chairman / Members
1.
Mr. G. S. Kang - Independent Director
Chairman
2.
Ms. Mala Todarwal - Independent Director
Member
3.
Mr. Mansoor Siddiqi - Non-Executive Director
Member

DuringtheFinancialYear2014-15,theAuditCommitteeMembershadmetasfollows:-

Name of Director / Date of Meeting
Mr. S. K. Roongta
Mr. M. Siddiqi
Mr. G. S. Kang
17th April, 2014
Y
Y
Y
17th July, 2014
Y
Y
Y
16th October, 2014
Y
Y
Y
15th January, 2015
Y
N
Y
31st March, 2015
Y
Y
N

NominationandRemunerationCommittee(Constitutedason31st March,2015)

TheexistingconstitutionofNominationandRemunerationCommitteeisasfollows:-

Sl. No.
Name
Chairman
1
Mr. G. S. Kang - Independent Director
Member
2
Ms. Mala Todarwal - Independent Director
Member
3
Mr. S. K. Roongta - Non-Executive Director
Member

*ChairmanshallbeelectedattheensuingMeetingoftheCommittee.

FurthertheCommitteewasconstitutedon31st March,2015,thereforenoMeetingoftheCommitteewasheldduringthefinancialyear2014-2015.CorporateSocialResponsibilityCommittee

TheExistingconstitutionoftheCorporateSocialResponsibilityCommitteeisasfollows:-

Sl. No.
Name
Chairman / Members
1
Mr. S. K. Roongta - Non-Executive Director
Chairman
2
Mr. Mansoor Siddiqi - Non-Executive Director
Member
3
Mr. G. S. Kang - Independent Director
Member

TheBoardofDirectorshadapprovedtheCSRpolicyandtheBudget.TheCSRpolicyisuploadedonCompany'swebsite.Further,theReportonCSRActivities/InitiativesisenclosedasAnnexureB.Directors'ResponsibilityStatement

Tothebestofourknowledgeandbeliefandaccordingtotheinformationandexplanationsobtainedbyus,wemakethefollowingstatementsintermsofSection134(3)(c)oftheCompaniesAct,2013:

a) Thatinthepreparationoftheannualfinancialstatementsfortheyearended31stMarch,2015,theapplicableaccountingstandardshadbeenfollowedalongwithproperexplanationrelatingtomaterialdepartures,ifany;

b) ThatsuchaccountingpoliciesasmentionedinNote2oftheNotestotheFinancialStatementshavebeenselectedandappliedconsistentlyandjudgmentsandestimateshavebeenmadethatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyasat31stMarch,2015andoftheprofitoftheCompanyfortheyearendedonthatdate;

c) ThatproperandsufficientcarehasbeentakenforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheCompaniesAct,2013forsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;

d) Thattheannualfinancialstatementshavebeenpreparedonagoingconcernbasis;and

e) Thatproperinternalfinancialcontrolswereinplaceandthatthefinancialcontrolswereadequateandwereoperatingeffectively.

f) Thatthedirectorshaddevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemswereadequateandoperatingeffectively.STATUTORYAUDITORS,THEIRREPORTANDNOTESAPPENDEDTOTHEREPORT

InthelastAnnualGeneralMeetingoftheCompany,heldon26thJune,2014,M/s.DeloitteHaskinsandSellsLLP,CharteredAccountants(RegistrationNo.117366W/W-100018)havebeenappointed as StatutoryAuditorsoftheCompanyforthefinancialyear2014-2015.TheStatutoryAuditorsoftheCompanyretiresattheensuingAnnualGeneralMeetingoftheCompany.

Further,theIndependentAuditor'sReportalongwiththenotesappendedtheretoisenclosedtothisReportasAnnexureC.Theobservationsmadeinthe Auditor'sReportareself-explanatoryandthereforedonotcallforanyfurthercomments.CostAudit

DuringtheimmediatelyprecedingfinancialyeartheAnnualTurnoveroftheCompanywasnotexceedtheprescribedlimitsunderCompanies(CostRecordsandAuditRules)2014hencetheCostAuditrequirementswasnotapplicabletotheCompany.Secretarialaudit

IntermsofSection204oftheActandRules,madethereunder,M/s.VAPandAssociates,PracticingCompanySecretaryhavebeenappointedSecretarialAuditorsoftheCompany.ThereportoftheSecretarial Auditorsis enclosed as Annexure Dtothisreport.Thereportis self-explanatory anddonotcallforanyfurthercomments.Relatedpartytransactions

ThedetailsoftransactionsenteredintowiththeRelatedPartiesareenclosedasAnnexureE.

HUMANRESOURCES

YourCompanytreatsitsï¿½humanresourcesï¿½asoneofitsmostimportantassets.

YourCompanycontinuouslyinvestinattraction,retentionanddevelopmentoftalentonanongoingbasis.Anumberofprogramsthatprovidefocusedpeopleattentionarecurrentlyunderway.YourCompanythrustisonthepromotionoftalentinternallythroughjobrotationandjobenlargement.Presently219employeesareonrollsoftheCompany.

Further,PursuanttotheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014,statementofparticularsofemployeesisannexedasAnnexureF.RISKMANAGEMENTPOLICY

IntermsoftherequirementoftheAct,theCompanyhasdevelopedandimplementedtheRiskManagementPolicyandtheAuditCommitteeoftheBoardofDirectorsreviewsthesameperiodically.

TheCompanyhasarobustBusinessRiskManagement(BRM)frameworktoidentify,evaluatebusinessrisksandopportunities.Thisframeworkseekstocreatetransparency,minimizeadverseimpactonthebusinessobjectivesandenhancetheCompany'scompetitiveadvantage.The

businessriskframeworkdefinestheriskmanagementapproachacrosstheenterpriseatvariouslevelsincludingdocumentationandreporting.Theframeworkhasdifferentriskmodelswhichhelpinidentifyingriskstrend,exposureandpotentialimpactanalysisataCompanylevel.VIGILMECHANISM

PursuanttotherequirementoftheAct,yourCompanyhavebeenadoptedtheVigilMechanismsystem/Whistleblowingsystem,togovernthereceipt,retention,andtreatmentofComplaintsandtoprotecttheconfidentialityandanonymityofthestakeholders/employees/casesreported.Thepoliciesandprocedures applytoandareavailableto allemployeesoftheCompanyandallexternalstakeholders.

FurthertheCompanyhasalsopostedtheVigilMechanism/WhistleblowerPolicyonitswebsite(http://www.tsplindia.co)inaccordancewiththeprovisionsofCompaniesAct2013.Declarationbyindependentdirectors

Mr.G.S.Kang,andMs.MalaTodarwalareindependentDirectorsontheBoardofyourCompany.IntheopinionoftheBoardandasconfirmedbytheseDirectors,theyfulfilstheconditionsspecifiedinsection149oftheActandtheRulesmadethereunderabouttheirstatusasIDsoftheCompany.COMPANY'SPOLICYONAPPOINTMENTANDREMUNERATION

InlinewiththebestpracticesandthegovernancephilosophyandprovisionsoftheCompaniesAct2013,theCompanyhasformedaNominationandRemunerationCommittee,toestablishtheprinciplesfortheselectionofcandidatestotheBoardofDirectors,selectscandidatesfortheelectionorre-electiontotheBoardofDirectorsandpreparesaproposalfortheBoardofDirectors'decision.

TheCommitteewillrecommendtheremuneration/compensation/commissionetc.tobepaidtotheDirectorstotheBoardfortheirapprovalThesameshallbesubjecttotheapprovaloftheshareholdersoftheCompanyandtheCentralGovernment,whereverrequired.

FurtherthecommitteehasrecommendedtheNominationandRemunerationpolicyoftheCompany,whichshallbeadoptedinensuingBoardMeeting.

Significantandmaterialorderspassedbytheregulators

Duringtheyearunderreview,thefollowingsignificantandmaterialorderswerepassedbytheregulatorsorcourtsortribunalsimpactingthegoingconcernstatusandCompany'soperations:

A. InterimreliefforCoalObligationmatterwaspassedwherebyAlternateCoalarrangementduringtheinterimperiodisallowed

B. LDmatterwasdisposedbyPSERCandAPTELbyreferringittoArbitrationandstayonBGtocontinue

C. FinancialClosermatterwasfavorablydisposedbytheArbitratorShriVKGarg.

D. MegamatterisadverselydecidedbyPSERCwithmajority(2:1)order.AppealispendingbeforeAPTEL.INTERNALFINANCIALCONTROLS

TheCompanyhasanInternalControlSystem,commensuratewiththesize,andnatureofbusinessoftheCompany.ThescopeandauthorityoftheInternalAudit(IA)functionisdefinedintheInternalAuditCharter.Tomaintainitsobjectivityandindependence,theInternalAuditfunctionreportstotheChairmanoftheAuditCommitteeoftheBoard.

TheInternalAuditteammonitorsandevaluatestheefficacyandadequacyofinternalcontrolsystemintheCompany,itscompliancewithoperatingsystems,accountingproceduresandpoliciesatalllocationsoftheCompanyanditssubsidiaries.Basedonthereportofinternalauditfunction,processownersundertakecorrectiveactionintheirrespectiveareasandtherebystrengthenthecontrols.SignificantauditobservationsandcorrectiveactionsthereonarepresentedtotheAuditCommitteeoftheBoard.HoldingandSubsidiaries

YourCompanycontinuestobetheSubsidiaryofSesa Sterlite Limited(formerlyKnownasSesaGoaLimited).FurthertheCompanydoesnothaveanySubsidiary/AssociateCompanyduringtheperiod.Transfer of Amounts to Investor Education and Protection Fund

Your Company did not have any funds lying unpaid or unclaimed for a period of seven years. Therefore there were no funds which were required to be transferred to Investor Education and Protection Fund (IEPF).

Fixed Deposits

Your Company has not accepted any deposits from public in terms of Section 73 and/or 74 of the Companies Act, 2013. Hence disclosure under this head is not required.EVALUATIONOFBOARD

TheBoardiscommittedtoassessitsownperformanceinordertoidentifyitsstrengthsandareasinwhichitmayimproveitsfunctioning.Tothatend,theNominationandRemunerationCommitteehasestablishedtheprocedureforevaluationofperformanceofeveryDirectorandtheBoardanditsCommitteesannually.ThefollowingevaluationcriteriafortheBoard,itsCommitteeandallDirectorsshallbeconsidered:-

v Knowledgetoperformtherole;

v Timeandlevelofparticipation;

v Performanceofdutiesandlevelofoversight;and

v Professionalconductandindependence.

Detailsofconservationofenergy/fuel,technologyabsorption,foreignexchangeearningsandoutgo

(a) Conservationofenergy/fuel

TheCompanyhasinitiatedtomaintaindepartmentalelectricityaccounting,monitoringtotakenecessaryinitiativesforconservationofelectricity.FurthertheCompanyisunderprocesstoinstallSolarPowerPlantsforrenewableEnergy.Inthisregardafeasibilitystudywasconductedbyï¿½NovusGreenEnergySystemsï¿½,whichrecommendstoinstallSolarPowerPlantsatvarioussitesoftheCompanytoconservetheelectricityandtopromoteuseofrenewablesourceofenergy.Useofelec.AsperDesignparameters

TheCompanyhasproposeduseofMicroOilgunsforfuelsavingduringstart-upsandotheroperatingoperations.(b) Technologyabsorption

TheCompanyisbenchmarkingwithotherThermalpowerPlantswithinthecountry.Duringbenchmarkingvarioustechnologiesevolvedsomeofthemareasfollows:-

a) TominimizethefuelconsumptionduringStart-UpsbyusingMicroOilguns

b) AshHandlingandDisposalsystembyusingHighlyConcentratedSlurryDisposalsystem.

Duringtheyear,thetotalforeignexchangeoutgowasUSD377MillionandthetotalforeignexchangeearnedwasNil.DisclosureunderSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013

TheCompanyhasinplaceanAnti-SexualHarassmentPolicyinlinewiththerequirementsofTheSexualHarassmentofWomenattheWorkplace(Prevention,ProhibitionandRedressal)Act,2013.Internal ComplaintsCommittee(ICC)hasbeensetupto redresscomplaintsreceivedregardingsexualharassment.Allemployees(permanent,contractual,temporary,trainees)arecoveredunderthispolicy.

Thefollowingisasummaryofsexualharassmentcomplaintsreceivedanddisposedofduringtheyear2014-15:

No. of Complaints received:
2
No. of Complaints disposed of:
2

ACKNOWLEDGEMENT

YourDirectorsplaceonrecordtheirappreciationforemployeesatalllevels,whohavecontributedtothegrowthandperformanceofyourCompany.

YourDirectorsalsothanktheclients,vendors,bankers,shareholdersandadvisersoftheCompanyfortheircontinuedsupport.

YourDirectorsalsothanktheCentralandStateGovernments,andotherstatutoryauthoritiesfortheircontinuedsupport.

Date:17.04.2015

ForandonbehalfoftheBoardTalwandiSaboPowerLimited

Place:Delhi SD/-

ChairmanMr.S.K.RoongtaDIN:00309302

AnnexureA

FormNo.MGT-9

EXTRACTOFANNUALRETURN

Asonthefinancialyearendedon31st March,2015ofTALWANDISABOPOWERLIMITED

[PursuanttoSection92(1)oftheCompaniesAct,2013andrule12(1)oftheCompanies(ManagementandAdministration)Rules,2014]

I. REGISTRATIONANDOTHERDETAILS:

(i) CorporateIdentificationNumber : U40101PB2007SGC031035

(ii) RegistrationDate : 05/04/2007

(iii) NameoftheCompany : TALWANDISABOPOWERLIMITED

(iv) Category/Sub-CategoryoftheCompany : PublicCompany

(v) AddressoftheRegisteredOfficeandcontactdetails

:TalwandiSaboPowerLimited, VillageBanwala,Mansa-TalwandiSaboRoad,Mansa,Punjabï¿½151302

(vi) Whetherlistedcompany : Yes(Debt.Listed)

(vii) Name,Addressandcontact detailsofRegistrar

andTransferAgents(RTA),ifany

: KarvyComputersharePvt.Ltd.

KarvyComputersharePrivateLimited8-2-596KarvyPlaza,Avenue4,StreetNo.1,BanjaraHills,

II. PRINCIPALBUSINESSACTIVITIESOFTHECOMPANY

Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated:-

Sl. No.
Name and Description of main products /services
NIC Code of theProduct/ service
% to total turnover of thecompany
1.
Electricity generation by coal based thermalelectricplant
35102
100%

III. PARTICULARSOFHOLDING,SUBSIDIARYANDASSOCIATECOMPANIES-

S.N0
NAME AND
ADDRESS OF THECOMPANY
CIN/GLN
HOLDING/SUBSIDIARY/ASSOCIATE
% ofsharesheld
1.
Sesa Sterlite Limited (Formerly known as Sesa Goa Limited)
L13209GA1965PLC000044
Holding
100%

IV. SHARE HOLDING PATTERN (EquityShareCapital Breakup as percentage of TotalEquity)

(i) Category-wiseShareHolding

Categoryof Shareholders

No.ofSharesheldatthebeginningofthe year

No.ofSharesheldattheendoftheyear

%Change duringtheyear

Demat

Physical

Total
%ofTotal Shares

Demat

Physical

Total
%ofTotal Shares
A. Promoters

(1)Indian

(a) Individual/HUF
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(b)Central Govt.
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(c) State Govt. (s)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(d) BodiesCorp.
N.A
250
Crore
250
Crore
100%
N.A
320.6
Crore
320.6
crore
100%
28.24%
(e) Banks /FI
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(f)Any Otherï¿½.
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Sub-total (A) (1):-
N.A
250
Crore
250
Crore
100%
N.A
320.6
Crore
320.6
Crore
100%
28.24%
(2)Foreign

(a)NRIs -
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Individuals
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(b) Other ï¿½
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Individuals
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(c) BodiesCorp.
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(d) Banks /FI
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(e)Any Otherï¿½.
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Sub-total (A) (2):-
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Total shareholding ofPromoter (A) =(A)(1)+(A)(2)

N.A.

250
Crore

250
Crore

100%

N.A.

320.6
Crore

320.6
Crore

100%

28.24%

Categoryof Shareholders
No. of Shares held at the beginningofthe year
No.of Shares heldat the endof theyear
%Change duringthe year

Demat

Physical

Total
%ofTotal Shares

Demat

Physical

Total
%ofTotal Shares

B. PublicShareholding
-
1. Institutions
-
(a) Mutual Funds
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(b) Banks /FI
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(c) Central Govt.
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(d)State Govt.(s)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(e)VentureCapitalFunds
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(f)InsuranceCompanies
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(g)FIIs
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(h)ForeignVentureCapital Funds
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(i) Others(specify)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Sub-total (B)(1):-
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
2. Non-Institutions
-
(a)BodiesCorp.
-
(i) Indian
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(ii) Overseas
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(b) Individuals
-
(i) Individualshareholdersholding nominalshare capitaluptoRs.1 lakh

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil
(ii) Individualshareholdersholding nominalshare capitalinexcess ofRs.1lakh

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil
(c)               Others(specify)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Sub-total (B)(2):-
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Total            PublicShareholding(B)=(B)(1)+(B)(2)

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil
C.SharesheldbyCustodianforGDRs andADRs

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.
Grand            Total (A+B+C)

N.A
250
Crore
250
Crore

100%

N.A.
320.6
Crore
320.6
Crore

100%

28.24%

(ii) ShareholdingofPromoters

SlNo.
Share holder'sName
Shareholding at the beginningofthe year
(approx.)
Shareholding at the endof theyear
(approx.)
%change In shareholdingduringthe year(approx.)
No. ofShares
%oftotal Shares ofthe company
%ofSharesPledged /encumberedto total
shares
No. ofShares
%oftotal Shares ofthe company
%ofShares Pledged /encumberedto totalshares

1.
Sesa Sterlite Limited
(Formerly known as Sesa GoaLimited)
250
Crore
100%
N.A.
320.6
Crore
100%
N.A.
28.24%

(iii) ChangeinPromoters'Shareholding(pleasespecify,ifthereisnochange)

Sl.
No.

Shareholding at the beginningofthe year (approx.)
CumulativeShareholdingduringtheyear
(approx.)
Particulars
No.ofshares
%oftotal shares    ofthe company
No. of shares
%oftotalsharesof the company

Atthebeginningoftheyear
250 Crore
100%
320.6 Crore
100%

Date wise Increase /Decrease in PromotersShareholdingduringtheYear        specifying        thereasons    for   increase /decrease(e.g.
Allotment/transfer/bonus/sweat equity etc.):

70.6Croreshares wereallottedon04.12.2015                 ï¿½ConversionofLoanavailed

28.24%

320.6 Crore
100%

At the end of the year
320.6 Crore
100%
320.6 Crore
100%

(iv) ShareholdingPatternoftoptenShareholders(otherthanDirectors,PromotersandHoldersofGDRsandADRs):

Sl.
No.
For Each of the Top10 Shareholders
Shareholding at the beginning ofthe year
Cumulativeshareholdingduringtheyear
No.ofshares
%oftotal shares    ofthe company
No.ofshares
%oftotalsharesof the company

Atthebeginningoftheyear
N.A.
N.A.
N.A.
N.A.

Date wise Increase /Decrease                      in
Shareholdingduringtheyear      specifying       thereasonsfor increase /decrease(e.g.allotment
-transfer/bonus/sweatequity etc.):
N.A.
N.A.
N.A.
N.A.

AttheEndoftheyear(or onthedateofseparation,ifSeparatedduring theyear)
N.A.
N.A.
N.A.
N.A.

(v).*ShareholdingofDirectorsandKeyManagerialPersonnel:

Sl.
No.
For Each ofthe DirectorsandKMP
Shareholding at the beginningofthe year (approx.)
Cumulative Shareholding during theyear (approx.)
No.ofshares
%oftotal shares of thecompany
No.ofshares
%oftotalsharesof the company

Atthebeginningoftheyear
4
0.01%
4
0.01%

DatewiseIncrease/DecreaseinShareholdingduringtheyearspecifyingthereasonsforincrease/decrease(e.g.allotment/transfer/bonus/sweatequity etc):
Nil
Nil
Nil
Nil

At the end of the year
4
0.01%
4
0.01%

*HeldasNomineeShareholdersonly.

V. INDEBTEDNESS

IndebtednessoftheCompanyincludinginterestoutstanding/accruedbutnotdueforpayment

(Rs.InLacs)

Particulars
Secured Loansexcludingdeposits
UnsecuredLoans
Deposits
Total Indebtedness
Indebtedness at the beginning

3,14,832.76

2,27,322.24

N/A

5,42,155.00
ofthefinancialyear
i) Principal Amount
ii)Interest due but not paid
NIL
NIL
Nil
iii) Interest accrued butnotdue
2,797.29
537.49
3,334.78
Total (i+ii+iii)
3,17,630.05
2,27,859.73
N/A
5,45,489.78
Change in Indebtednessduring

1,91,308.41

11,47,260.44

N/A

13,38,568.85
the financial year
ï¿½Addition
ï¿½Reduction
1,64,323.83
10,22,956.68
11,87,280.51
NetChange
26,984.58
1,24,303.76
N/A
1,51,288.34
Indebtedness at the

3,41,841.52

3,12,260.74

N/A

6,54,102.26
endof the financialyear
i)Principal Amount
ii)Interest due but not paid
NIL
NIL
Nil
iii)Interest accrued but notdue
4,937.28
131.60
5,068.88
Total ( i+ii+iii )
3,46,778.80
3,12,392.34
N/A
6,59,171.14

I. REMUNERATIONOFDIRECTORSANDKEYMANAGERIALPERSONNEL

A. RemunerationtoManagingDirector,Whole-timeDirectorsand/orManager:

Sl. No
Particulars ofRemuneration
NameofManagerï¿½ Mr. Viral Mehta / Mr.ChetanShrivastav
1.
Gross salary
(a) Salaryasperprovisionscontainedinsection17(1)ofthe Income-tax Act,
1961
(b) Valueofperquisitesu/s17(2)Income-tax Act, 1961
(c) Profitsinlieuofsalaryunder

83.99 Lacs

1.00 Lacs
2.
Stock Option
Nil
3.
Sweat Equity
Nil
4.
. Commission- as % of profit
- Others, specifyï¿½
Nil
5.
Others, (Vehicle)
1.75 Lacs

Total (A)
86.74 Lacs

Ceilingas per the Act
120.00 Lacs

B. Remunerationtootherdirectors:

Sl.
No.
Particulars ofRemuneration
Name ofDirectors
Total Amount(Rs.)

Independent Directors
ï¿½Feeforattendingboard/committee meetings
ï¿½Commission
ï¿½Others, please specify
Mr. G. S. Kang

1,20,000/-
Nil
Ms. Mala Todarwal*

Nil
Nil

1,20,000/-

Total (1)
1,20,000/-
Nil
1,20,000/-

2. Other Non-ExecutiveDirectors
ï¿½Feeforattendingboard/committee meetings
ï¿½Commission
ï¿½Others, please specify
N.A
N.A
N.A.

Total (2)
N.A.
N.A.
N.A.

Total (B)=(1+2)
1,20,000/-
Nil
1,20,000/-

Total ManagerialRemuneration
NA
NA
NA

Overall Ceiling as per theAct
Rs. 1 Lakh perMeeting
Rs. 1 Lakh per Meeting
Rs. 2 Lakh perMeeting

*Appointed on 31.03.2015C. REMUNERATIONTOKEYMANAGERIALPERSONNELOTHERTHANMD/MANAGER/WTD

Sl.
No.
Particulars ofRemuneration
KeyManagerial Personnel (Rs. In Lacs)
CFO
CompanySecretary
Total
1
Gross salary

73.30

28.71

102.01
(a)Salary asper provisions
contained insection 17(1) of

the Income-tax Act, 1961

(b)Valueofperquisitesu/s
1.00
Nil
1.00
17(2)Income-tax Act, 1961

(c)Profits in lieu of salary
Nil
Nil
Nil
undersection17(3)Income-tax
Act, 1961
2
Stock Option
Nil
NA
NA
3
Sweat Equity
Nil
NA
NA
4
Commission - as % of profit
- Others, specifyï¿½
Nil
NA
NA
5
Others (Vehicle)
1.75
Nil
1.75

Total
76.05
28.71
104.76

VII. PENALTIES/PUNISHMENT/COMPOUNDINGOFOFFENCES:

Type
SectionoftheCompaniesAct
Brief Description
Details of Penalty/Punishment/Compoundingfees imposed
Authority[RD/NCLT
/COURT]
Appealmade,
ifany(giveDetails)
A.COMPANY
Penalty
N.A.
N.A.
N.A.
N.A.
N.A.
Punishment
N.A.
N.A.
N.A.
N.A.
N.A.
Compounding
N.A.
N.A.
N.A.
N.A.
N.A.
B. DIRECTORS
Penalty
N.A.
N.A.
N.A.
N.A.
N.A.
Punishment
N.A.
N.A.
N.A.
N.A.
N.A.
Compounding
N.A.
N.A.
N.A.
N.A.
N.A.
C.OTHER OFFICERS INDEFAULT
Penalty
N.A.
N.A.
N.A.
N.A.
N.A.
Punishment
N.A.
N.A.
N.A.
N.A.
N.A.
Compounding
N.A.
N.A.
N.A.
N.A.
N.A.

AnnexureB

REPORT ON CSR ACTIVITIES/ INITIATIVES

[Pursuant toSection135oftheAct andRulesmadethereunder]

TheBoardofDirectorshadapprovedtheCSRpolicyandtheBudget.TheCSRpolicyisuploadedonCompany'swebsite.FurtherAspartofitsinitiativesunderï¿½CorporateSocialResponsibility(CSR),theCompanyhasundertakenprojectsinthe areasofEducation,Livelihood,Health,WaterandSanitation.

Abriefoutlineofthecompany'sCSRpolicy,includingoverviewoftheprojectsorprogramsproposedtobe undertaken and reference tothe web-link totheCSRPolicy and projects orprograms:-

This ï¿½Corporate Social Responsibility Policyï¿½ of Talwandi Sabo Power Limited has been developed in accordance with section 135 of the Companies Act 2013 on CSR and the CSR rules notified by the Ministry of Corporate Affairs, GOI on 27th February 2014. Adopting the principal of equity TSPL is serving its stakeholders without any distinction of caste, creed, class or race.The responsibility for compliance with this policy lies with the CSR team, Senior Managers, Chief Executive Officer and the Directors working for TSPL. The Policy may be find be clicking on the following web-link:-

http://www.tsplindia.co/Policy_CSR-TSPL.pdf

1. The composition oftheCSR Committee isas follows:-

Sl. No.
Name
Chairman/ Members
1.
Mr. S.K. Roongta ï¿½Non-ExecutiveDirector
Chairman
2.
Mr. Mansoor Siddiqiï¿½ Non-Executive Director
Member
3.
Mr. G. S. Kangï¿½ IndependentDirector
Member

2. Average Net Profit of the company for last 3 financial yearsï¿½N.A.

3. Prescribed CSR expenditure (2% of amount) ï¿½ N.A.

4. Detailsof CSR activities/projects undertaken during theyear:

Sr.No

CSRproject/activityidentified

SectorinwhichtheProjectiscovered
Projects/Programmes1.Localarea/others-2.specifythestate/district(NameoftheDistrict/s,State/swhereproject/programme wasundertaken

Amountoutlay(budget)project/programmewise

Amountspentontheproject/programme

Sub-heads:1.Directexpenditureonproject/programme,2.Overheads:

Cumulativespenduptotothereportingperiod

Amountspent:Direct/through
implementingagency*

1
MedicalhealthCamp,adolescenthealthcamp,Blooddonation,safedrinkingwater

Health

DistrictMansa,Punjab

1434000

1141256.00

1141256

Direct

2
Greenschooldevelopment,Schoolup-gradationAanganwadidevelopment

Education

DistrictMansa,Punjab

1045000

790722

1931978

Direct
3
Culturalevent
SportsandCulture
DistrictMansa,Punjab
175000
18860
1950838
Direct

4
Stakeholdersvisitandmeetings
StakeholderEngagement
DistrictMansa,Punjab

264000

122140

2072978

Direct

5
Communityplantation

BioInvestment
DistrictMansa,Punjab

25000

25670

2098648

Direct

5. TheCSRCommitteestatesthattheimplementationandmonitoringofCSRPolicy,isincompliancewithCSR objectives and Policyofthe Company.

Date:DelhiPlace: 17.04.2015

SD/-

Chairman ofCSRCommittee

AnnexureCï¿½IndependentAuditorsReport

INDEPENDENTAUDITOR'SREPORTTOTHEMEMBERSOF

TALWANDISABOPOWERLIMITED

ReportontheFinancialStatements

WehaveauditedtheaccompanyingfinancialstatementsofTALWANDISABOPOWERLIMITED(ï¿½theCompanyï¿½),whichcomprisetheBalanceSheetasat31st March,2015,theStatementofProfitandLossandtheCashFlowStatementfortheyearthenended,andasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation.

MANAGEMENT'SRESPONSIBILITYFORTHEFINANCIALSTATEMENTS

TheCompany'sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompaniesAct,2013(ï¿½theActï¿½)withrespecttothepreparationofthesefinancialstatementsthat giveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsofthe CompanyinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairview andarefreefrommaterialmisstatement,whetherduetofraudorerror.

AUDITORS'RESPONSIBILITY

Ourresponsibilityistoexpressanopiniononthesestandalonefinancialstatementsbasedonouraudit.

WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.

WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsandthedisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor'sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheCompany'spreparationofthefinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopiniononwhethertheCompanyhasinplaceanadequateinternalfinancialcontrolssystemoverfinancialreportingandtheoperatingeffectivenessofsuchcontrols.Anauditalsoincludesevaluatingtheappropriateness oftheaccountingpolicies usedand thereasonablenessoftheaccountingestimatesmadebytheCompany'sDirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthefinancialstatements.

OPINION

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaid financialstatementsgive the informationrequired bythe Actinthe manner sorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasat31stMarch,2015,anditsloss anditscashflowsfortheyearendedonthatdate.

REPORTONOTHERLEGALANDREGULATORYREQUIREMENTS

ï¿½ AsrequiredbySection143(3)oftheAct,wereportthat:

ï¿½ Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit.

ï¿½ Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks.

ï¿½ TheBalanceSheet,theStatementofProfitandLoss,andtheCashFlowStatement dealtwithbythisReportareinagreementwiththebooksofaccount.

ï¿½ Inouropinion,theaforesaidfinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7 oftheCompanies(Accounts)Rules,2014.

ï¿½ Onthebasisofthewrittenrepresentationsreceivedfromthedirectorsason31stMarch,2015takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedason31st March,2015frombeing appointedas a directorinterms of Section164 (2)oftheAct.

ï¿½ With respecttothe othermatters tobe includedinthe Auditor'sReportinaccordance withRule11oftheCompanies(Audit andAuditors)Rules,2014, inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:

i. TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialstatementsï¿½RefertoNote27tothefinancialstatements.

ii. TheCompanydidnothaveanylong-termcontractsincludingderivativecontractsforwhichtherewereanymaterialforeseeablelosses;

iii. TherewerenoamountswhichwererequiredtobetransferredtotheInvestorEducationandProtectionFundbytheCompany.

ForDELOITTEHASKINSandSELLSLLP

CharteredAccountantsFirm'sRegistrationNo.117366W/W-100018

Sd/-

NewDelhi,April17,2015 JITENDRAAGARWAL

PartnerMembershipNo.87104

AnnexureD

Form MR ï¿½ 3

SECRETARIALAUDITREPORT

FORTHEFINANCIALYEARENDED31MARCH,2015

[Pursuanttosection204(1)oftheCompaniesAct,2013andrule9oftheCompanies

(AppointmentandRemunerationofManagerialPersonnel)Rules,2014]

To,

TheMembers

TalwandiSaboPowerLimited,

VillageBanawala,Mansaï¿½TalwandiSaboRoad,Dist.Mansa,Punjabï¿½151302,India.

WehaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyTalwandiSaboPowerLimited(hereinaftercalledtheCompany).SecretarialAuditwasconductedinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.

Wereportthat:

a) MaintenanceofsecretarialrecordistheresponsibilityofthemanagementoftheCompany.Ourresponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonouraudit.

b) Wehavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsofthesecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.WehavenotverifiedthecorrectnessandappropriatenessofthefinancialrecordsandBooksoftheCompany.

c) Whereeverrequired,wehaveobtainedtheManagementrepresentationaboutthecompliancesoflaws,rulesandregulationsandhappeningofeventsetc.ThecomplianceoftheprovisionsoftheCorporateandotherapplicablelaws,rules,regulations,standardsistheresponsibilityofmanagement.

BasedonourverificationoftheCompany'sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbythecompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,weherebyreportthatinouropinion,thecompanyhas,duringtheauditperiodcoveringthefinancialyearendedon31March,2015(ï¿½AuditPeriod')compliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:

Wehaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyforthefinancialyearendedon31March,2015accordingtotheprovisionsof:

(i) TheCompaniesAct,2013(theAct)andtherulesmadethereunder;

(ii) TheSecuritiesContracts(Regulation)Act,1956(ï¿½SCRA')andtherulesmadethereunder;

(iii) TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;

(iv) ForeignExchangeManagementAct,1999andtherulesandregulationsmadethereundertotheextentofForeignDirectInvestment,OverseasDirectInvestmentandExternalCommercialBorrowings;

(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(ï¿½SEBIAct'):ï¿½

(a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

(b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,1992;

(d) TheSecuritiesandExchangeBoardofIndia(EmployeeStockOptionSchemeandEmployeeStockPurchaseScheme)Guidelines,1999andTheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014notifiedon28October2014;

(e) TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;

(f) TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993regardingtheCompaniesActanddealingwithclient;

(g) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)

Regulations,2009;and

(h) TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998.

(vi) HavingregardtothecompliancesystemprevailingintheCompanyandonthebasisofpresentationandReportsmadebyComplianceAuditorsandInternalAuditorsoftheCompany,wefurtherreportthattheCompanyhasadequatesystemtoensurethecomplianceoftheotherapplicablelawsspecificallytotheCompany.

Wehavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

(i) SecretarialStandardsissuedbyTheInstituteofCompanySecretariesofIndia(havenotnotifiedhencenotapplicabletotheCompanyduringtheauditperiod).

(ii) DebtListingAgreementswithNationalStockExchangeofIndiaLimited.

DuringtheperiodunderreviewtheCompanyhascompliedwiththeprovisionsoftheAct,Rules,Regulations,Guidelines,Standards,etc.mentionedabove.

Wefurtherreportthat

TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectorsandIndependentDirectors.Thechangesinthecompositionof theBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutin compliancewiththeprovisionsoftheActbut the compliance for Independent Directors was done in the last month of the period under review.

AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweregenerallysentatleastsevendaysinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeetingexceptinsomecasesagendawascirculated onshorter notice withtheconsentof theBoard membershowever documentsforconsentforshorternoticewerefoundinplace.

AlldecisionsatBoardMeetingsandCommitteeMeetingsarecarriedoutbymajorityasrecordedin theminutesofthe meetingsoftheBoard ofDirectorsorCommitteeoftheBoard,asthe casemaybe.

WefurtherreportthatbasedontheinformationreceivedandrecordsmaintainedthereareadequatesystemsandprocessesintheCompanycommensuratewiththesizeandoperationsofthecompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.

Wefurtherreportthatduringtheauditperiod:

(a) theCompanyhasissuedfollowingdebentures:

(i) Secured,Redeemable,Non-ConvertibleDebenturesaggregatingRs.500Crores in following tranches:-

A.9.60% Secured, Redeemable, Non-ConvertibleDebentures aggregating Rs. 120 Crore

B.9.70% Secured, Redeemable, Non-ConvertibleDebentures aggregating Rs. 180 Crore

C.9.27% Secured, Redeemable, Non-ConvertibleDebentures aggregating Rs. 200 Crore

(ii) 8.91%SecuredRedeemableNon-ConvertibleDebenturesaggregatingRs.1000Crores in two tranches of Rs. 325 Crore and Rs. 675 Crore respectively.

(b) ThemembersoftheCompanyhaveapprovedforadoptionofnewMemorandumofAssociationandArticlesofAssociationsoftheCompanyaftermakingnecessarychangesaspertherequirementofthenewCompaniesAct,2013bymeansofspecialresolutionpassedinExtra OrdinaryGeneralMeetingoftheCompanyheldon6thNovember,2014;

(c) ThemembersoftheCompanyhaveapprovedincreaseinAuthorizedCapitaloftheCompanyfromRs.2500CrorestoRs.4000CroresbymeansofSpecialResolutionpassedinExtra OrdinaryGeneralMeetingoftheCompanyheldon6thNovember,2014.

(d) TheCompanyhasissuedandallotted706,609,692EquitySharestoitsholdingCompany i.e.SesaSterliteLimited (Formerly known as Sesa Goa Limited)byConversionofoutstandingdebt(includingoutstandinginterestthereon),availedfromitsHoldingCompany.

ForVAPandAssociatesCompanySecretaries

Sd/-

Parul JainProprietor

CPNo.13901

Place: Ghaziabad Date: 16.04.2015

TALWANDISABOPOWERLIMITED

Annexure-E

FORMNO.AOC-2

(Pursuanttoclause(h)ofsub-section(3)ofsection134oftheActandRule8(2)oftheCompanies(Accounts)Rules,2014.

SL.No.
Particulars
Details

a)
Name(s)oftherelatedparty
andnatureofrelationship

SesaSterliteLimited (SSL) - Formerly known as Sesa Goa limited
HindustanZincLimited(HZL)

MalcoEnergyLimited

BharatAluminiumCompanyLimited(BALCO)

b)

Natureofcontracts/arrangements/transaction
Recoveryfrom/(Reimbursementto)fordeputedEmployeescostandotherexpensesï¿½Net

Purchase/(sale)ofCapitalGoods/FixedAssets
Recoveryfrom/(Reimbursementto)fordeputedEmployeescostandother
expensesï¿½Net
Recoveryfrom/(Reimbursementto)fordeputedEmployeescostandother
expensesï¿½Net

Purchase/(sale)ofCapitalGoods/FixedAssets
Recoveryfrom/(Reimbursementto)fordeputedEmployeescostandotherexpensesï¿½Net

c)
Durationofthecontracts/arrangements/transaction

FY2014-15

FY2014-15

FY2014-15

FY2014-15

FY2014-15

FY2014-15

d)
Salienttermsofthecontractsorarrangementsortransactionincludingthe
value,ifany

13.99Crore

0.17Crore

Rs.0.06Crore

Rs.0.01Crore

0.01Crore

Rs.0.08Crore
e)
ApprovedbytheBoard
Yes
Yes
Yes
Yes
Yes
Yes

f)
Amountpaidasadvances,ifany

Nil

Nil

Nil

Nil

Nil

Nil

Note:-All the transactions entered duringthe period,betweenthe Company and Related Partieswere at arm'slengthbasis.

Place: Delhi

Date: 17.04.2015 SD/-

Chairman of the Board

BOARD REPORT2014-2015 37

TALWANDISABOPOWERLIMITEDAnnexureF

StatementofParticularsofemployeespursuanttotheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014

Sl.
No.
NameoftheEmployee
Designation/Nature ofDuties
RemunerationReceived[Rs.inlacs]
Qualification
Experienceinyears
Ageinyears
Date         ofcommencement      ofemployment
Lastemploymentheld
1
2
3
4
5
6
7
8
9
1
Mr. PhilipChacko
ChiefOperatingOfficer
162.00
B.
Tech.,PGDBM
21
Years
44
Years
23.07.2012
LANCO
2
Mr. ViralMehta
Manager*
93.93
B.E.
22
Years
43
01.04.2010
BALCO
3
Mr.AnupAgarwal
CFO*
71.31
B.
Com.    ,
C.A.
18.3
42
18.01.2010
BALCO
4
Mr.       P.
Joseph
HeadHR*
60.41
B.A.      ,NSW
17
42
15.07.2013
HZL
5
Mr.ChetanShrivastav
Manager/HeadOandM
54
B.E.
19
Years
42
Years
21.11.2009
MALCO
6
Mr. AmitAgarwal
ChiefFinancialOfficer
52
B.
Com.,CA
13
Years
38
Years
19.01.2015
BALCO
7
Mr.PankajChauhan
CompanySecretary
28.71
B.COM,CS,LLB
11
Years
34
Years
29.12.2011
HeroMotors

* RelinquishedOffice

Notes:

1 Allappointmentsare/werenon-contractual.

2 RemunerationasshownabovecomprisesofSalary,LeaveSalary,Bonus,Gratuitywherepaid,LeaveTravelAssistance,MedicalBenefit,HouseRentAllowance,PerquisitesandCompany'sContributiontoProvidentFundandSuperannuationFund.RemunerationonCashbasis.

3 NoneoftheaboveemployeesisrelatedtoanyDirectoroftheCompany.

* Employedforpartofthefinancialyear.

Description of state of companies affair

Business Review/State of the Company's affairs During the Financial Year 2014-15 the Company has commissioned its First Unit and started commercial production w.e.f 05th of July, 2014 from 00:00:00 Hrs. Further, the following events occurred during the year :- ¢ The first Unit (Unit # 2) of the plant started Commercial production. ¢ The Company increased its Authorized Capital from 2,500 Crore to 4,000 Crore at its EGM dated 06.11.2014. ¢ The Articles and Memorandum of Associations of the Company were modified in line with Companies Act, 2013. ¢ Company started sale of Fly Ash w.e.f. Feb, 2015.

Details regarding energy conservation

The Company has initiated to maintain departmental electricity accounting, monitoring to take necessary initiatives for conservation of electricity. Further the Company is under process to install Solar Power Plants for renewable Energy. In this regard a feasibility study was conducted by "Novus Green Energy Systems", which recommends to install Solar Power Plants at various sites of the Company to conserve the electricity and to promote use of renewable source of energy. Use of elec. As per Design parameters The Company has proposed use of Micro Oil guns for fuel saving during start-ups and other operating operations.

Details regarding technology absorption

The Company is benchmarking with other Thermal power Plants within the country. During benchmarking various technologies evolved some of them are as follows:- a) To minimize the fuel consumption during Start-Ups by using Micro Oil guns b) Ash Handling and Disposal system by using Highly Concentrated Slurry Disposal system.

Details regarding foreign exchange earnings and outgo

During the year, the total foreign exchange outgo was USD 377 Million and the total foreign exchange earned was Nil.

Disclosures in director’s responsibility statement

To the best of our knowledge and belief and according to the information and explanations obtained by us, we make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013: a) That in the preparation of the annual financial statements for the year ended 31st March, 2015, the applicable accounting standards had been followed along with proper explanation relating to material departures, if any; b) That such accounting policies as mentioned in Note 2 of the Notes to the Financial Statements have been selected and applied consistently and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2015and of the profit of the Company for the year ended on that date; c) That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d) That the annual financial statements have been prepared on a going concern basis; and e) That proper internal financial controls were in place and that the financial controls were adequate and were operating effectively. f) That the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Multigain Financial Services Pvt. Ltd. ROC Reg No. U67190DL2004PTC130552, ARN # 31406
Multigain Securities Services Pvt Ltd. ROC Reg No.U74999UP2008PTC035558 Member National Stock Exchange Membership ID 13766 SEBI Reg # INB / INF / INE 231376634 Member Bombay Stock Exchange Membership ID 13766 SEBI Reg # INB / INF 011376630 Member MCX Stock Exchange. Membership No. 59500, SEBI Reg No.INE261330935 Member UNITED Stock Exchange Membership ID 13766 SEBI Reg # INE 271376634
Multigain Commodities Services Pvt Ltd ROC Reg No. U52100UP2008PTC035237 Member MCX Membership No. MCX/TM/ 9080 FMC Reg # MCX/TM/CORP/1694 Member NCDEX Membership No. NCDEX /TM/00926 FMC Reg No. NCDEX/TM/CORP/0903 Member NMCE Membership No. NMCE/TCM/CL0364 FMC Reg No. NMCE/TCM/CORP/0289 Member ICEX Membership No. ICEX/TM/1038 FMC Reg No. ICEX/TM/CORP/0037 Member ACE Membership No. ACE/TCM/6070 FMC Reg No. ACE/TCM/CORP/ Member NSEL Membership No. NSEL/TCM/12400 Member NCDEX SPOT

ACCORD FINTECH