Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar...

24
Bhilwara Energy Limited Annual Report 2006-2007

Transcript of Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar...

Page 1: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

Bhilwara Energy Limited Annual Report 2006-2007

Page 2: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

Having been built on solid, reliable foundations, the

LNJ Bhilwara Group has evolved beyond its rich

heritage, steeped in integrity, reliability, quality… and

most importantly, an innate ability for innovation.

This ethos has catapulted the Group onto a global

platform, having set several benchmarks along the

years, driven by a passion for excellence.

Today, the Group is driven selflessly by its dedicated

team, which constantly innovates to generate out-of-

the-box solutions, extrapolating the current market

scenarios and trends, to focus on the needs of

tomorrow.

The LNJ Bhilwara Group offers its customers, clients

and shareholders, an avalanche of success stories,

infused with perfection and practicality alike, each one

a new gem of superlative achievement.

L. N. JhunjhunwalaChairman - Emeritus

LNJ Bhilwara Group

A Passionfor Excellence

Page 3: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

Bhilwara Energy Limited ›› Annual Report 2006-2007

ContentsContentsGroup Salient Features 2

Corporate Information 3

Notice of Annual General Meeting 4

Directors’ Report 6

Annexure to Directors’ Report 10

Auditors’ Report 11

Balance Sheet 14

Schedules 15

Balance Sheet Abstract 19

Page 4: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

Power

1. Bhilwara Energy

Ltd.

2. Malana Power

Company Ltd.

3. AD Hydro Power

Ltd.

Hydro Power

Generation

1. Thermal

2. Hydro

3. Waste Heat Recovery

4. Wind Energy

1. Indo CanadianConsultancyServices Ltd.

Captive Power

Power Consultancy

Group Salient Features : 2006-07

GROUP FINANCIAL HIGHLIGHTS

PARTICULARS 2004-05 2005-06 2006-07

Turnover 2049 2387 2859

Export Sales 893 1016 1361

PBIDT 274 374 434

PBDT 208 286 323

PBT 96 156 193

PAT 79 115 134

Gross Fixed Assets 2494 2922 3835

Net Worth 969

(Rs. in crore)

1382 1525

• RSWM Limited (yarn, fabric, garments, technical textiles, Denim)

• Maral Overseas Ltd. (cotton yarn, fabric & knitted garments)

• BSL Ltd. (fabric - worsted, polyester & silk furnishing)

• BMD Pvt. Ltd. (automotive fabric)

• Bhilwara Spinners Ltd. (yarn)

• Bhilwara Processors Ltd. (process house)

Textiles

• HEG Limited

Graphite Electrodes / Steel

2

• Bhilwara Energy Limited incorporated as the Holding Company for the Group’s power businesses.

• Bhilwara Energy Limited bags three Hydel Power projects in Arunachal Pradesh.

• Bhilwara Energy formalises agreement with Punjab State Electricity Board to develop and run a 75 MW power plant near Pathankot.

• MPCL becomes the first hydro power company in India to implement ERP.

• RSWM Limited is the new name for Rajasthan Spinning & Weaving Mills Ltd.

• RSWM has initiated a Rs. 900 crore expansion plan. Its Denim & Captive Thermal Power Plants are nearing completion.

• RSWM, Maral Overseas and BSL Limited expand their spindle capacities.

• RSWM was recently felicitated with Rajiv Gandhi National Quality Award.

• RSWM announced the acquisition of Cheslind Textiles Ltd., a Bangalore based textile unit.

• RSWM International B.V., Holland, incorporated, a 100% subsidiary of RSWM, executes a 50:50 JV with SISA S.A., Spain. The new JV entity is known as RSWM SISA.

• RSWM ropes in Salman Khan as brand ambassador for Mayur Suitings.

• HEG’s 52,000 MT per annum, Graphite Electrode plant stabilised.

• HEG institutes LNJ Award for outstanding work in the field of Carbon.

• HEG initiated Rs. 110 crore Capex during the year.

• Bhilwara Scribe ranked amongst the top 5 BPOs in Healthcare segment.

Page 5: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

3

Bhilwara Energy Limited ›› Annual Report 2006-2007

Corporate Information

BANKERS & FINANCIAL INSTITUTIONS

CORPORATE OFFICE

REGISTERED OFFICE & WORKS

UTI Bank Limited

State Bank of India

Centurion Bank of Punjab Limited

Bhilwara TowersA-12, Sector - 1NOIDA - 201 301 (U.P.)Phone : 0120-4390300Fax : 0120-2531648, 745Website : www.bhilwaraenergy.com

Bhilwara Bhawan40-41, Community CentreNew Friends ColonyNew Delhi - 110 065Phone : 011-26822997

GROUP CHAIRMAN - EMERITUS

GROUP CHAIRMAN

BOARD OF DIRECTORS

STATUTORY AUDITORS

TECHNICAL CONSULTANTS

Mr. L. N. Jhunjhunwala

Mr. Ravi Jhunjhunwala

Mr. Vimal Banka

Mr. B. P. Singh

Mr. Salil Bhandari

Mr. M. K. Dooger

M/S S. S. Kothari Mehta & Co., New Delhi

M/s Indo-Canadian Consultancy Services Limited

Page 6: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

4

NOTICE is hereby given that the First Annual General Meeting of the members of the Company will be convened on

Saturday, the 29th day of September, 2007 at 14.00 A.M. at the Registered Office of the Company at Bhilwara

Bhawan, 40-41 Community Centre, New Friends Colony, New Delhi - 110065 to transact the following business:

1. To receive, consider and adopt the Audited Balance Sheet as on 31st March, 2007 and Report of the Board of

Directors and the Auditors report thereon.

2. To appoint M/s S. S. Kothari Mehta & Co., Chartered Accountants as Statutory Auditors, who shall hold office

from the conclusion of this Annual General Meeting until the conclusion of next Annual General Meeting and to

fix their remuneration.

3. To consider and if thought fit, to pass with or without modification, the following resolutions as an Ordinary

Resolution in respect of which Notice, as required under Section 257 of the Companies Act, 1956, has been

received from a member:

a. “RESOLVED THAT Mr. Vimal Banka, who was appointed with effect from 21.07.2006 as an Additional

Director of the Company and holds office upto the date of this Annual General Meeting under Section 260

of the Companies Act, 1956 be and is hereby appointed as a Director of the Company, liable to retire by

rotation”.

b. “RESOLVED THAT Mr. Mahender Kumar Doogar, who was appointed with effect from 21.07.2006 as an

Additional Director of the Company and holds office upto the date of this Annual General Meeting under

Section 260 of the Companies Act, 1956 be and is hereby appointed as a Director of the Company, liable to

retire by rotation”.

c. “RESOLVED THAT Mr. Salil Bhandari, who was appointed with effect from 21.07.2006 as an Additional

Director of the Company and holds office upto the date of this Annual General Meeting under Section 260

of the Companies Act, 1956 be and is hereby appointed as a Director of the Company, liable to retire by

rotation”.

d. “RESOLVED THAT Mr. Bhaskar Pratap Singh, who was appointed with effect from 29.12.2006 as an

Additional Director of the Company and holds office upto the date of this Annual General Meeting under

Section 260 of the Companies Act, 1956 be and is hereby appointed as a Director of the Company, liable to

retire by rotation”.

e. “RESOLVED THAT Mr. Sunil Chawla, who was appointed with effect from 21.08.2007 as a Additional

Director of the Company and holds office upto the date of this Annual General Meeting under Section 260

of the Companies Act, 1956 be and is hereby appointed as a Director of the Company, liable to retire by

rotation”.

BY ORDER OF THE BOARD

FOR BHILWARA ENERGY LIMITED

Place : NOIDA, U.P. Vimal Banka

Date : 1st September, 2007 Director

ORDINARY BUSINESS:

SPECIAL BUSINESS:

Notice of Annual General Meeting

Page 7: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

Bhilwara Energy Limited ›› Annual Report 2006-2007

5

NOTES

ANNEXURE TO THE NOTICE

EXPLANATORY STATEMENT PURSUANT TO

SECTION 173(2) OF THE COMPANIES ACT, 1956.

Item No. 3:

1. A member entitled to attend and vote is entitled to appoint a proxy to attend and vote instead of himself and such

proxy need not be a member of the Company. The proxy to be effective should be lodged at the Registered Office

of the Company at least 48-hours before the commencement of the meeting.

2. Shareholders seeking any information with regard to accounts are requested to write to the Company at least 7-

days in advance so as to enable the Company to keep the desired information ready.

3. Members/ Proxies should bring the Attendance Slip duly filled in for attending the meeting.

4. Members are requested to notify promptly, the changes, if any, in their address to the Company.

Mr. Vimal Banka, Mr. M. K. Doogar, Mr. Salil Bhandari were appointed as additional directors on 21st July 2006 and

Mr. B. P. Singh was appointed as Additional Director on 29th December, 2006.

Mr. Sunil Chawla was also appointed as Additional Director, as representative Director for the New York Life

Investment Management India Fund FVCI II LLC and Jacob Ballas Capital India Private Ltd. on 21st August, 2007 as

per the terms and conditions of Share Subscription and Shareholder's Agreement dated 20th June 2007 signed by the

Company.

According to the provisions of Section 260 of the Companies Act, 1956, the above Directors can hold office upto the

date of the Annual General Meeting. As required by Section 257 of the Companies Act, 1956, a notice has been

received from Members signifying their intention to propose the appointment of all above said Additional Directors

as Director at the forthcoming Annual General Meeting. Hence, necessary resolutions are required to be passed in

the meeting for member's approval.

All above Directors are deemed to be interested in the proposed resolution to the extent of their appointment as a

Director. Directors recommend the resolution as proposed in the Notice for Member's approval.

Page 8: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

6

Directors’ ReportBOARD’S REPORT

To the members of Bhilwara Energy Limited

INCORPORATION

POWERING THE FUTURE

THE WAY AHEAD

OPERATIONS

On behalf of the Board of Directors, I have pleasure in presenting the First Annual

Report of the Board on the formation of the Company and Audited Statement of

Accounts for the year ended 31st March, 2007 together with the Auditors’ Report.

The Company was incorporated on 17th May, 2006 and the Certificate to

commence business was received from Registrar of Companies, New Delhi on

13th July, 2006.

The Company has been incorporated with the objective to be a Flagship Entity of

LNJ Bhilwara Group in Power Sector. The Company endeavors to develop new

green field power projects or acquisitions with plans to venture into the State of

Uttaranchal, Sikkim, Madhya Pradesh, Chattisgarh, Himachal Pradesh, Arunachal

Pradesh and Nepal. It intends to participate in the renovation and modernization

of old power stations and to undertake power distribution, power trading and

power transmission from surplus to deficit areas. The Company shall venture to

own, develop and maintain not only Hydro Projects but also Thermal power

plants in the country. The Company shall be participating in bidding process for

viable projects to secure more water concessions in Hydro Power Sector. The

Company is determined to expand its power generation capacity continuously.

The envisioned power generation capacity of the Company is 1500 MW by the

year 2015.

It is proposed that the Company shall be the holding Company of all other power

sector companies of the Group. The Company will hold 51% equity stake in its

Group affiliate Malana Power Company Limited. By acquiring 51% equity stake in

MPCL, the Company would also acquire 45.9% holding of AD Hydro Power

Limited indirectly, since MPCL holds 90% stake in ADHPL. The Company plans to

dilute a portion of the equity base to mobilize funds for the purpose of its upcoming

hydro projects from time to time. All the future projects of the LNJ Bhilwara

Group shall be held by the Company, except for the Captive Power Plants.

During its first year of operations, it has signed Implementation Agreement with

Page 9: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

Bhilwara Energy Limited ›› Annual Report 2006-2007

7

Punjab State Electricity Board (PSEB) to develop, operate

and maintain 75 MW UBDC State III Canal Based Hydro

Electric Project in the State of Punjab. The Company also

signed Memorandum of Agreement with State

Government of Arunachal Pradesh to implement, develop

and operate three hydro projects namely Nyamjang Chhu

State I, II & III in Tawang district in the State of Arunachal

Pradesh with the total capacity of 290 MW. The

preparation of Detailed Project Report (DPR) in respect of

above three projects has already been assigned to Indo

Canadian Consultancy Services Ltd., a Company of LNJ

Bhilwara Group.

During the period under review, the company raised its

authorized capital from Rs. 50 million to Rs. 1000 million.

The Company also preferentially issued and allotted

66,775,900 equity shares of face of Rs. 10/- each to several

individuals, Hindu Undivided families, LNJ Bhilwara

Group and Investment Companies including HEG Limited

and RSWM Limited.

During the financial year, the Company issued and

allotted 19,425,715 warrants of face value of Rs. 10/- each,

INCREASE IN AUTHORISED CAPITAL

WARRANTS CONVERTIBLE INTO EQUITY SHARES

with each warrant convertible into equity share of the

Company of nominal value of Rs. 10/- each to promoters /

promoter group and Relatives of promoters. The right for

conversion of share warrants into equity shares shall be

exercisable only in the event of installed capacity of three

Hydro Power Projects exceeding 290 MW, to be

determined by the DPR and approval thereof by the

Government of Arunachal Pradesh (GoAP).

Being the first year of its operation, your directions do not

propose any dividend for the financial year under review.

The Company values human resources very vital to the

augmentation of the organization. The Company

recognizes serious dearth of trained expert personnel in

power sector. With the initiative of Government for

growth in power sector, there is growing requirement for

not just qualified engineers, but also for finance,

marketing, commercial, IT and HR personnel. There is an

urgent need for skilled people in power generation,

distribution and trading.

Your Company has also put in place recruitment and

DIVIDEND

HUMAN RESOURCE DEVELOPMENT

Page 10: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

8

a true and fair view of the state of affairs of the

Company at the end of the financial year and of the

profit or loss of the company for the financial

year 2006-2007;

iii) that the proper and sufficient care has been taken for

the maintenance of adequate accounting records in

accordance with the provisions of this Act for

safeguarding the assets of the company and for

preventing and detecting fraud and other

irregularities; and

iv) that the annual accounts have been prepared on

going concern basis.

During the year under review, Mr. Ravi Jhunjhunwala,

Mr. Riju Jhunjhunwala and Dr. Kamal Gupta resigned

from the Board of Directors with effect from 21st July,

2006. Mr. Vimal Banka, Mr. M. K. Doogar & Mr. Salil

Bhandari were appointed with effect from 20th July, 2006

and Mr. B. P. Singh was appointed as an Additional

Director with effect from 29th December, 2006, until the

conclusion of the Annual General Meeting. The Board

recommends for the appointment of all the additional

Directors at Annual General Meeting who shall be liable

to retire by rotation.

DIRECTORS

human resource management system for its future needs

of enormous manpower requirements in development of

projects, which enables it to attract and retain high caliber

employees. Your Company is also committed to become

an attractive employer in the industry.

During the financial year 2006-2007, no employee of the

Company was covered as per the provisions of section

217(2A) of the Companies Act, 1956 (the Act), read with

the Companies (Particulars of Employees) Rules, 1975, as

amended, regarding employees.

As required under section 217 (2AA) of the Companies

(Amendment) Act, 2000, the Directors' of your Company

states hereunder:-

i) that in the preparation of the annual accounts, the

applicable accounting standards had been followed

along with proper explanation relating to material

departures, if any;

ii) that the accounting policies have been selected and

applied consistently and made judgments and

estimates that are reasonable and prudent so as to give

PARTICULARS OF EMPLOYEES

DIRECTORS' RESPONSIBILITY STATEMENT

Page 11: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

9

Bhilwara Energy Limited ›› Annual Report 2006-2007

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN

EARNINGS AND EXPENDITURE

PUBLIC DEPOSITS

AUDITORS

AUDITORS’ REMARKS

ACKNOWLEDGEMENT

Since the Company is yet to start operational activity and has no dealings in foreign

exchange, the particulars required by the Companies (Disclosure of Particulars in

the Report of Board of Directors) Rules, 1988 are NIL.

The Company has not accepted any deposits from the public during the year under

report. Therefore, provisions of Section 58A are not applicable.

M/s S. S. Kothari Mehta & Co., Chartered Accountants Statutory auditors of the

Company retire at the ensuing Annual General Meeting of the Company and being

eligible offers themselves for reappointment.

The observations made by the Auditors with reference to the Notes to the Accounts

for the year under report are self-explanatory and require no further comments from

the board.

The Board of Directors sincerely acknowledge the precious assistance and

continued support provided by the Ministry of Power, Government of Himachal

Pradesh, Govt. of Arunachal Pradesh, Himachal Pradesh State Electricity Board,

Haryana State Electricity Board, Power Trading Corporation Limited, Commercial

Banks and other Governmental Departments. The Board looks forward to their

continued support and cooperation in the coming year as well.

Your Directors are pleased to place on record the appreciation for the highly

motivated employees of the company who are working zealously for the

accomplishment of the Corporate Mission by believing that great works are

performed not by strength but by perseverance and we look forward to their

continued dedication in the years to come to enable the Company to scale even

greater zenith.

For and on behalf of the Board of Directors

Place : New Delhi VIMAL BANKADate : 8th June, 2007 Director

Page 12: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

10

ANNEXURE I TO THE DIRECTORS’ REPORT

STATEMENT OF PARTICULARS PURSUANT TO THE COMPANIES

(DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES,1988

1. CONSERVATION OF ENERGY - NIL

2. TECHNOLOGY ABSORPTION - NIL

A. RESEARCH AND DEVELOPMENT ( R& D ) - NIL

B. TECHNOLOGICAL ABSORPTION, ADAPTATION AND INNOVATION - NIL

c. EXPORTS & FOREIGN EXCHANGE EARNING AND OUTGO - NIL

Information pursuant to Section 217 (2A) of the Companies Act, 1956 read with the Companies

(Particulars of employees) Rules, 1975 and forming part of Directors Report for the year ended

31st March 2007 are given hereunder:

I. Persons employed for the full / part year - NIL

Page 13: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

Bhilwara Energy Limited » Annual Report 2007

11

AUDITORS’ REPORT

To the members of Bhilwara Energy Limited

We have audited the attached Balance Sheet of Bhilwara Energy

Limited as at 31st March, 2007. No Profit & Loss account

has been prepared as the company has not commenced

commercial operations, the relevant details have been furnished

in Schedule-3 ‘Project and Pre-operative expenses (pending

allocation).

These financial statements are the responsibility of the Company’s

management. Our responsibility is to express an opinion on these

financial statements based on our audit.

We have conducted our audit in accordance with auditing

standards generally accepted in India. These Standards require

that we plan and perform the audit to obtain reasonable assurance

about whether the financial statements are free of material

misstatement. An audit includes examining, on a test basis,

evidence supporting the amounts and disclosures in the financial

statements. An audit also includes assessing the accounting

principles used and significant estimates made by the

management, as well as evaluating the overall financial statement

presentation. We believe that our audit provides a reasonable

basis for our opinion.

As required by the Companies (Auditors’ Report) Order, 2003 as

amended by Companies (Auditors’ Report) (Amendment) Order,

2004 (Collectively the Order) issued by the Central Government

of India in terms of Section 227 (4A) of the Companies Act, 1956

and on the basis of such checks as we considered appropriate

and according to the information and explanations given to us,

we enclose in the Annexure a statement on the matters specified

in paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred to above, we

report that:

a) We have obtained all the information and explanations

which, to the best of our knowledge and belief, were

necessary for the purposes of our audit;

b) In our opinion, proper books of account, as required by

law, have been kept by the Company so far as appears from

our examination of those books;

c) The Balance Sheet dealt with by this report is in agreement

with the books of account;

d) In our opinion, the Balance Sheet, dealt with by this report,

complies with the Accounting Standards referred to in sub-

section (3C) of Section 211 of the Companies Act, 1956 to

the extent applicable;

e) On the basis of written representations received from the

Directors as on 31st March, 2007 and taken on record by

the Board of Directors, we report that none of the Directors

is disqualified as on 31st March, 2007 from being appointed

as a director in terms of clause (g) of sub section (1) of

section 274 of the Companies Act, 1956;

f) In our opinion and to the best of our information and

according to the explanations given to us, the said accounts,

read with the Accounting Policies and Notes thereon, give

the information required by the Companies Act, 1956 in

the manner so required and give a true and fair view in

conformity with the accounting principles generally

accepted in India;

i) In the case of Balance Sheet, of the state of affairs of

the Company as at 31st March, 2007.

For S. S. Kothari Mehta & Co.

Chartered Accountants

Arun K. Tulsian

Partner

Membership No. : 89907

Place : New Delhi

Date : 8th June, 2007

Page 14: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

12

ANNEXURE TO AUDITORS’ REPORT

(Annexure referred to in our report of even date)

1. (a) The Company has maintained proper records

showing full particulars including quantitative

details and situation of fixed assets.

(b) The Company has done the physical verification of

its fixed assets which, in our opinion, is reasonable

having regard to the size of the Company and the

nature of assets. As informed to us, no discrepancies

were noticed on such verification.

(c) No substantial fixed assets were disposed off during

the year.

2. According to the information and explanations given to

us and the records examined by us, the Company is not

having any inventory, in view of which the related

reporting requirement of this Order is not applicable on

the company.

3. (a) The Company has not granted any loan, secured or

unsecured, to Companies, firms and other parties

covered in the register maintained under section

301 of the Companies Act, 1956.

(b) The company has not taken any loan, secured or

unsecured, from Companies, firms and other parties

covered in the register maintained under section

301 of the companies Act, 1956.

(c) Since there are no such loans, the comments

regarding terms and conditions, payment of the

principal amount & interest thereon and overdue

amount are not required.

4. In our opinion, and according to the information and

explanations given to us during the course of audit, there

are adequate internal control systems commensurate with

size of the Company and the nature of its business with

regard to purchase of fixed assets. Further on our

examination of the books and records of the company

carried out in accordance with the generally accepted

auditing practices in India, we have neither come across

nor have we been informed of any instance of major

weaknesses in the aforesaid internal control systems.

5. (a) Based upon the audit procedures applied by us and

according to the information and explanations given

to us, we are of the opinion that there is no

transaction which is required to be entered into the

register maintained under section 301 of the Act.

(b) In our opinion, and according to the information

and explanations given to us, there are no

transactions made in pursuance of contracts or

arrangements required to be entered in the register

maintained under section 301 of the Companies

Act, 1956 and aggregating during the year to Rupees

five lacs or more in respect of each party.

6. The Company has not accepted any deposits from public

within the meaning of section 58A and 58AA of the

Companies Act, 1956 or any other relevant provisions

of the Act including the Companies (Acceptance of

Deposit) Rules, 1975.

7. According to the information and explanations given to

us, the requirements of internal audit do not apply to the

Company.

8. (a) According to the records of the Company,

undisputed statutory dues including Provident Fund,

Income-Tax, Sales-Tax, Wealth-Tax, Service Tax,

Custom Duty, Excise Duty, Cess and other material

statutory dues, as applicable, have been regularly

deposited during the year with the appropriate

authorities. According to the information and

explanations given to us and as per the books and

records examined by us, there are no arrears of such

undisputed statutory dues outstanding as on the date

of balance sheet for a period exceeding six months

from the date they became payable.

(b) According to the records of the Company examined

by us and the information and explanations given

to us, there are no dues of Custom Duty, Wealth

Tax, Service Tax, Sales Tax, Excise duty, Income

Tax and Cess which have not been deposited on

account of any dispute.

9. Since the Company is yet to commence commercial

production, there are no accumulated losses as at the

end of the financial year.

10. In our opinion, and according to the information given

to us, the company has not availed any loan or credit

from Financial Institution or Banks.

11. According to the information and explanations given to

us, the Company has not granted any loans and advances

on the basis of security by way of pledge of shares,

debentures and other securities.

12. The Company does not fall within the category of Chit

fund/Nidhi/Mutual Benefit fund/Society and hence the

related reporting requirements are not applicable.

13. According to the information and explanations given to

us and the records examined by us, the Company is not

dealing or trading in shares, securities, debentures and

other investments and hence the related reporting

requirements of the Order are not applicable.

Page 15: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

Bhilwara Energy Limited » Annual Report 2007

13

14. The Company has not given any guarantee for loans taken

by others from financial institutions / banks.

15. The Company has not raised Term Loans during the

financial year, hence the related reporting requirements

of the Order are not applicable.

16. According to the information and explanations given to

us and as per the books and records examined by us, as

on the date of balance sheet, no short term fund have

been raised by the Company. Hence the related reporting

requirement of the Order is not applicable.

17. The Company has not made any preferential allotment

of shares to companies and other parties covered in the

register maintained under section 301 of the Companies

Act, 1956.

18. The Company has not raised any debentures during the

year.

19. The Company has not raised any money through public

issue during the year.

20. During the course of our examination of the books and

records of the Company carried out in accordance with

the generally accepted auditing practices in India, we

have neither come across any instance of fraud on or by

the Company, noticed or reported during the year, nor

have we been informed of such case by the Management.

21. The other clauses of the Order are not applicable on the

Company.

For S. S. Kothari Mehta & Co.

Chartered Accountants

Arun K. Tulsian

Partner

Membership No. : 89907

Place : New Delhi

Date : 8th June, 2007

Page 16: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

14

BALANCE SHEET AS AT 31ST MARCH, 2007 (Rs. ‘000)

SCHEDULES As at 31.3.2007

SOURCES OF FUNDS

Shareholders' Funds.......................................................................................................................................................................................................................................................................................Share capital 1 667,759......................................................................................................................................................................................................................................................................................Share application money (pending allotment) 4,410......................................................................................................................................................................................................................................................................................Warrants 9,713......................................................................................................................................................................................................................................................................................TOTAL 681,882......................................................................................................................................................................................................................................................................................APPLICATION OF FUNDS......................................................................................................................................................................................................................................................................................Fixed Assets......................................................................................................................................................................................................................................................................................Gross block 2 131......................................................................................................................................................................................................................................................................................Less : Depreciation 18......................................................................................................................................................................................................................................................................................Net block 113......................................................................................................................................................................................................................................................................................Project and pre-operative expenses (pending allocation) 3 29,993......................................................................................................................................................................................................................................................................................

30,106......................................................................................................................................................................................................................................................................................Current Assets, Loans and Advances......................................................................................................................................................................................................................................................................................Cash and bank balances 4 413,789......................................................................................................................................................................................................................................................................................Other current assets......................................................................................................................................................................................................................................................................................Loans and advances 5 233,466......................................................................................................................................................................................................................................................................................

647,255......................................................................................................................................................................................................................................................................................Less: Current Liabilities and Provisions......................................................................................................................................................................................................................................................................................Liabilities 6 1,859......................................................................................................................................................................................................................................................................................Provisions 7 228......................................................................................................................................................................................................................................................................................

2,087......................................................................................................................................................................................................................................................................................Net Current Assets 645,168......................................................................................................................................................................................................................................................................................Miscellaneous Expenditure 8 6,608(to the extent not written off or adjusted)......................................................................................................................................................................................................................................................................................TOTAL 681,882......................................................................................................................................................................................................................................................................................Notes to Accounts 9......................................................................................................................................................................................................................................................................................

The Schedules referred to above form an integral part of the Balance Sheet.

As per our report of even date For and on behalf of the Board of Directors

For S. S. Kothari Mehta & Co.

Chartered Accountants

Arun K. Tulsian Vimal Banka B. P. Singh

Partner Director Director

Membership No. : 89907

Place : New Delhi

Date : 8th June, 2007

Page 17: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

Bhilwara Energy Limited » Annual Report 2007

15

SCHEDULES TO THE ACCOUNTS

(Rs. ‘000)

31.03.2007

SCHEDULE 1 : SHARE CAPITAL.......................................................................................................................................................................................................................................................................................

AUTHORISED.......................................................................................................................................................................................................................................................................................100,000,000 Equity shares of Rs.10 each 1,000,000.......................................................................................................................................................................................................................................................................................Issued, Subscribed and Paid up.......................................................................................................................................................................................................................................................................................66,775,900 Equity shares of Rs.10 each 667,759.......................................................................................................................................................................................................................................................................................

667,759.......................................................................................................................................................................................................................................................................................

SCHEDULE 2: FIXED ASSETS.......................................................................................................................................................................................................................................................................................

GROSS BLOCK DEPRECIATION NET BLOCK.......................................................................................................................................................................................................................................................................................Particulats Opening Additions/ Sale/ Cost as at Opening For the Sales Upto As at

Adjustment Adjustment 31.03.2007 Year Transfer 31.03.2007 31.03.2007.......................................................................................................................................................................................................................................................................................Furniture & Fixtures – 22 – 22 – 2 – 2 20.......................................................................................................................................................................................................................................................................................Computer – 52 – 52 – 9 – 9 43.......................................................................................................................................................................................................................................................................................Vehicles – 38 – 38 – 5 – 5 33.......................................................................................................................................................................................................................................................................................Electrical Equipments

& Fittings – 11 – 11 – 2 – 2 9.......................................................................................................................................................................................................................................................................................Project Equipments – 8 – 8 – 1 – 1 7.......................................................................................................................................................................................................................................................................................Total – 131 – 131 – 18 – 18 112.......................................................................................................................................................................................................................................................................................

SCHEDULE 3: PROJECT AND PRE-OPERATIVE EXPENSES

(pending allocation).......................................................................................................................................................................................................................................................................................Personnel Expenses......................................................................................................................................................................................................................................................................................Salaries , wages and bonus 822......................................................................................................................................................................................................................................................................................Contribution to provident and other funds 40......................................................................................................................................................................................................................................................................................Workmen and staff welfare expenses 72......................................................................................................................................................................................................................................................................................

934......................................................................................................................................................................................................................................................................................Administrative and other expenses......................................................................................................................................................................................................................................................................................Rent 53......................................................................................................................................................................................................................................................................................Rates & taxes 3......................................................................................................................................................................................................................................................................................Insurance 1......................................................................................................................................................................................................................................................................................Repairs and maintenance 4......................................................................................................................................................................................................................................................................................Travelling expense 930......................................................................................................................................................................................................................................................................................Conveyance 75......................................................................................................................................................................................................................................................................................Vehicle running & hiring expenses 85......................................................................................................................................................................................................................................................................................Communication expenses 27......................................................................................................................................................................................................................................................................................Auditor’s Remuneration :......................................................................................................................................................................................................................................................................................– Audit Fees 28......................................................................................................................................................................................................................................................................................Advertisement 4......................................................................................................................................................................................................................................................................................Legal & professional charges 3,058......................................................................................................................................................................................................................................................................................Fee & subscription 11......................................................................................................................................................................................................................................................................................

Page 18: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

16

(Rs. ‘000)

31.03.2007

Testing & Surveys 2,565......................................................................................................................................................................................................................................................................................Consultancy Charges 10,500......................................................................................................................................................................................................................................................................................Project processing fee 11,600......................................................................................................................................................................................................................................................................................Miscellaneous expenses 326......................................................................................................................................................................................................................................................................................Financial / bank charges 87......................................................................................................................................................................................................................................................................................Depreciation 18......................................................................................................................................................................................................................................................................................

29,375......................................................................................................................................................................................................................................................................................Less : Interest earned (Tax deducted at source Rs. 107 thousand,

(net of provision for income tax Rs. 160 thousand). (316).......................................................................................................................................................................................................................................................................................

29,993.........................................................................................................................................................................................................................................................................................

SCHEDULE 4: CASH AND BANK BALANCES.......................................................................................................................................................................................................................................................................................Cash in hand 84.......................................................................................................................................................................................................................................................................................Balances with scheduled banks:.......................................................................................................................................................................................................................................................................................On current accounts 413,705.......................................................................................................................................................................................................................................................................................On deposit accounts –.......................................................................................................................................................................................................................................................................................

413,789.......................................................................................................................................................................................................................................................................................

SCHEDULE 5: LOANS AND ADVANCES(Unsecured, considered good).......................................................................................................................................................................................................................................................................................Advances recoverable in cash or in kind or for value to be received 15,459.......................................................................................................................................................................................................................................................................................Loan to Body Corporates 217,870.......................................................................................................................................................................................................................................................................................Security deposit with Govt. departments & others –.......................................................................................................................................................................................................................................................................................Advance income tax / tax deducted at source 137.......................................................................................................................................................................................................................................................................................

233,466.......................................................................................................................................................................................................................................................................................

SCHEDULE 6: LIABILITIES.......................................................................................................................................................................................................................................................................................Sundry creditors 1,111.......................................................................................................................................................................................................................................................................................Deposits from contractors and others –.......................................................................................................................................................................................................................................................................................Other liabilities 748.......................................................................................................................................................................................................................................................................................

1,859.......................................................................................................................................................................................................................................................................................

SCHEDULE 7: PROVISIONS.......................................................................................................................................................................................................................................................................................Taxation including Fringe benefit tax 228.......................................................................................................................................................................................................................................................................................Leave encashment.......................................................................................................................................................................................................................................................................................

228.......................................................................................................................................................................................................................................................................................

SCHEDULE 8: MISCELLANEOUS EXPENDITURE(to the extent not written off or adjusted).......................................................................................................................................................................................................................................................................................Share issue expense.......................................................................................................................................................................................................................................................................................Balance as per last account 6,608.......................................................................................................................................................................................................................................................................................

6,608.......................................................................................................................................................................................................................................................................................

Page 19: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

Bhilwara Energy Limited » Annual Report 2007

17

A. SIGNIFICANT ACCOUNTING POLICIES

1. GENERAL

Financial statements are prepared on historical cost

convention and on the accounting principles of a going

concern, in accordance with Generally Accepted Accounting

Principles (“GAAP), comprising of the Mandatory Accounting

Standards, Guidance Notes and other pronouncements issued

by the Institute of Chartered Accountants of India and the

Provisions of the Companies Act, 1956. The accounts are

prepared on accrual basis.

2. FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation

and impairment losses, if any. Cost comprises the purchase

price and any attributable cost of bringing the asset to its

working condition for its intended use. Borrowing costs

relating to acquisition of fixed assets, which take substantial

period of time to get ready for its intended use, are also

included to the extent they relate to the period till such assets

are ready to be put to use.

The carrying amounts of assets are reviewed at each balance

sheet date to ascertain if there is any indication of impairment

based on internal/external factors. An impairment loss is

recognized wherever the carrying amount of an asset exceeds

its recoverable amount. The recoverable amount is the greater

of the assets net selling price and value in use. In assessing

value in use, the estimated future cash flows are discounted

to their present value at the weighted average cost of capital.

(3) EXPENDITURE INCURRED DURING CONSTRUCTION

PERIOD

Expenditure directly relating to construction activity is

capitalised. Indirect expenditure incurred during construction

period is capitalised as part of the indirect construction cost

to the extent to which the expenditure is indirectly related

to construction or is incidental thereto. Income earned during

construction period is deducted from the total of the indirect

expenditure.

(4) DEPRECIATION

Depreciation is provided on the following basis:

i. On the assets of generating unit, depreciation is

provided as per straight-line method (pro-rata basis) at

the rates prescribed under the Electricity Act, 2003.

ii. On Plant & Machinery other than those covered under

(i) above, depreciation is provided on straight-line

method at the rates prescribed in Schedule XIV to the

Companies Act, 1956.

iii. On fixed assets other than those covered under (i) and

(ii) above, depreciation is provided on written down

value method at the rates prescribed in Schedule – XIV

to the Companies Act, 1956.

iv. Depreciation on Project Equipments is provided as per

straight line method over the period upto the expected

date of completion of the project.

(5) REVENUE RECOGNITION

Revenue is recognized to the extent, it is probable that the

economic benefits will flow to the Company and the revenue

can be reliably measured.

(6) Miscellaneous Expenditure to the extent not written off or

adjusted

Preliminary Expenses will be amortized / adjusted starting

from the year in which the Company commences its

commercial operations.

(7) Provision for Current Tax is made in accordance with the

provisions of Income Tax Act, 1961.

SCHEDULE – 9: SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS

Page 20: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

18

B. NOTES TO ACCOUNTS

1. The Company was incorporated on 17th May, 2006.

The accounts have been prepared from the date of

incorporation upto 31st March, 2007. The figures

relating to previous year are not applicable.

2. The Company has issued and allotted 1,94,25,715

warrants of Rs. 10/- each convertible into one equity

share of face value i.e Rs. 10 per share, at par in the

event of the approved capacity of Company’s projects

in Arunachal Pradesh exceeding 290 MW to be

determined by the Detailed Project Report (DPR) and

approval thereof by the Government of Arunachal

Pradesh.

The Company has during the year received 5% of the

total value of the warrants and the balance 95% shall

be received on conversion of the warrants into equity

shares.

3. As the Company has not commenced commercial

operations as on March 31, 2007, no Profit and Loss

Account has been prepared, but in lieu thereof, a

Statement of Project and Pre-operative expenses

(pending allocation) has been prepared as per Schedule

3 and expenses incurred during the period ended March

31, 2007 in relation to the construction of the project,

have been included under the said Schedule, to be

allocated appropriately to the relevant fixed assets at

the time of commencement of commercial operations.

4. The Company has issued and allotted 1,94,25,715

warrants of Rs. 10/- each convertible into one equity

share of Rs. 10/- each at the option of the holder.

The Company has during the year received 5% of the

total value of the warrants and the balance 95% shall

be received on conversion of the warrants into equity

shares.

5. Provision of Payment of Gratuity Act are not applicable

during the year ended 31st March, 2007.

6. Amount payable to Small Scale Industrial undertakings

as at 31st March, 2007 is Rs. Nil to the extent such

parties have been identified from available information.

As per our report of even date.

For and on behalf of the Board of Directors

For S. S. Kothari Mehta & Co.

Chartered Accountants

Arun K. Tulsian Vimal Banka B. P. Singh

Partner Director Director

Membership No. : 89907

Place : New Delhi

Date : 8th June, 2007

Page 21: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

Bhilwara Energy Limited » Annual Report 2007

19

BALANCE SHEET ABSTRACT & COMPANY’S GENERAL BUSINESS PROFILE

I. REGISTRATION DETAILS :

Registration No. 1 4 8 8 6 2 State Code 5 5

Balance Sheet Date 3 1 0 3 2 0 0 7

Date Month Year

II. CAPITAL RAISED DURING THE YEAR (AMOUNT IN RS. THOUSANDS)

Public Issue – Rights Issue –

Bonus Issue – Private Placement 6 6 7 7 5 9

III. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (AMOUNT IN RS. THOUSANDS)

Total Liabilities 6 8 3 9 6 9 Total Assets 6 8 3 9 6 9

Sources of Funds

Paid-up-Capital 6 6 7 7 5 9 Reserves and Surplus –

Share Application Money 4 4 1 0 Deferred Tax Liability –

Warrants 9 7 1 3

Secured Loans – Unsecured Loans –

Application of Funds

Net Fixed Assets 3 0 1 0 6 Investments –(Incl.P.O.P. exps)

Net Current Assets 6 4 5 1 6 8 Miscellaneous Expenditure 6 6 0 8

Accumulated Losses –

IV. PERFORMANCE OF COMPANY (AMOUNT IN RS. THOUSANDS)

Turnover – Total Expenditure –

Profit/(Loss) before Tax – Profit/(Loss) after tax –

Earning Per Share (in Rs.) – Dividend Rate (%) –

V. GENERIC NAMES OF THE THREE PRINCIPAL PRODUCTS / SERVICES OF THE COMPANY (AS PER MONITORYTERMS)

Item Code No. 9 8 0 1 0 0(ITC Code)

Product Description H y d r o E l e c t r i c E n e r g y

For and on behalf of the Board of Directors

Vimal Banka B. P. Singh

Director Director

Place : New Delhi

Date : 8th June, 2007

Page 22: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

20

NOTES

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

......................................................................................................................................................

Page 23: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

A. TEXTILES

RSWM Limited

1. Kharigram Synthetic, Regenerated Cellulosic Blended Grey, Dyed Yarn

2. Mayur Nagar, Banswara Synthetic, Regenerated Cellulosic & Cotton-blended Grey Yarn

3. Mandpam Cotton Melange Yarn, Cotton-blended Melange & Dyed Yarn

4. Rishabhdev Synthetic, Blended & Grey Yarn

5. Ringas Synthetic & Blended Dyed Yarn

6. Bangalore Apparel

7. LNJ Nagar, Mordi Fabric

8. LNJ Nagar, Mordi Denim

9. LNJ Nagar, Mordi Captive Thermal Power

10. Bagalur Cotton Yarn

Maral Overseas Ltd.

11. Maral Sarovar Cotton Yarn, Cotton-Knitted Fabric & Cotton Knitwears(100% EOU)

12. Maral Sarovar Captive Thermal Power

13. Noida Knitwears

14. Noida Knitwears

BSL Ltd.

15. Bhilwara Yarn, Worsted, Synthetic & Silk Fabric, Garments & Accessories

16. Jaisalmer Captive Wind Power Generation

Bhilwara Spinners Ltd.

17. Bhilwara Synthetic, Blended Grey & Dyed Yarn

BMD Pvt. Ltd.

18. LNJ Nagar, Mordi Specialised Automotive Fabric & Furnishing Fabric

Bhilwara Processors Ltd.

19. Bhilwara Processing of Synthetic & Worsted Fabric, Tops Fibre Dyeing

B. GRAPHITE

HEG Ltd.

20. Mandideep Graphite Electrodes

21. Mandideep Captive Thermal Power

22. Durg Steel Billets

23. Durg Captive Waste Heat Recovery Power

24. Tawa Captive Hydro Electric Power

C. POWER

Bhilwara Energy Ltd.

25. Pathankot UBDC Stage III Hydro Electric Power Generation

26. Tawang Nyamjung Chhu Hydro Electric Power Generation

Malana Power Company Ltd.

27. Malana (Kullu) Hydro Electric Power Generation

AD Hydro Power Ltd.

28. Allain-Duhangan Hydro Electric Power Generation(Manali)

Indo Canadian Consultancy Services Ltd.

29. Noida Power Engineering Services

D. INFORMATION TECHNOLOGY

Bhilwara Scribe Pvt. Ltd.

30. Bhopal Medical Transcription Services

Bhilwara Infotech Ltd.

31. Bangalore IT Services

E. OFFICES

Corporate Office

32. Noida (NCR - Delhi)

Regional / Marketing

33. Mumbai 34. Kolkata 35. Bangalore 36. New Delhi

37. Ludhiana 38. Amritsar 39. Bhilwara

1

3

5

2

4

9

8

7

6

12

11

1413

1516

17

18

19

21 20

24

23

22

25

26

2728

29

30

3135

32

33

37

36

38

LNJ BHILWARA GROUP

A NATIONWIDE PRESENCE

39

Thi

s is

on

ly a

n i

ndi

cati

ve m

ap

34

10

Page 24: Bhilwara Energy Limited Annual Report 2006-2007bhilwaraenergy.com/Uploads/File/bel final ar 2007.pdf · Bhilwara Energy Ltd. 2. Malana Power Company Ltd. 3. ... • RSWM Limited is

Corporate Office :

Bhilwara Towers, A-12, Sector I, Noida - 201301 (NCR - Delhi), India

Visit us at www.bhilwaraenergy.com