12th annual accounts for the year 2016-17 orders 2018/tariff... · profile of cesc chamundeshwari...

12th

ANNUAL ACCOUNTS FOR THE YEAR

2016-17

CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED

INDEX

Sl. No Particulars Page No.

1. Board of Directors

2. 12th AGM Notice

3. Notes

4. Form of Proxy

5. Company Profile

6. Directors Report

7. Addendum to Directors Report

8. Auditors` Report

9. Secretarial Audit Report

10. Comments of C&AG on the Annual Accounts

11. Balance Sheet

12. Statement of Profit & Loss

13. Cash Flow Statement

14. Notes 1 to 36

15. Vital Statistics

16. Subsidy Statement

i

BOARD OF DIRECTORS

List of Directors (as on the date of AGM)

Shriyuths,

1. Sri. Dr. Rajaneesh Goel IAS Chairman

2. Sri. D. Kiran, IRS Managing Director

3. Sri. K.T. Mahanthappa Director Technical

4. Sri. S. Ziyaullah IAS Director

5. Sri. D. Randeep IAS Director

6. Sri. Pavankumar Malapati IAS Director

7. Sri. H. Nagesh Director

8. Sri. T.R. Ramakrishnaiah Director

9. Kum. Charulatha Somal IAS Director

10. Sri. M. Pratap Director

11. Sri. A. N. Jayaraj Director

12. Sri. Arif khan Director

13. Sri. D. Siddaraju Director

14. Sri. D. Gopal Director

15. Sri. Huchegowda Director

16. Sri. Swamygowda Director

17. Smt. Latha Jayanna Director

18. Smt. B.K. Chandrakala Director

19. Sri. Madanamurali Director

20. Sri. C.K. Suresh Director

21. Sri. A. Shivanna Chief Financial Officer

22. Sri. K. T. Hiriyanna, FCS, Authorised signatory Convener

COMPANY SECRETARY

K.T. Hiriyanna

REGISTERED OFFICE

No. 29, Vijayanagar 2nd Stage,

Hinkal, Mysuru - 560017

website: www.cescmysore.org

CORPORATE IDENTITY NUMBER (CIN)

CIN: U40109 KA2004 SGC 035177

ii

BANKERS

1. Syndicate Bank

2. State Bank of Mysore

3. Vijaya Bank

4. Canara Bank

5. Corporation Bank

6. Kotak Mahindra Bank

7. ICICI Bank

STATUTORY AUDITORS

M/s Ganesan & Co., Bengaluru

COST AUDITORS

M/s NS & Associates, Bengaluru

iii

CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED (Government of Karnataka undertaking)

(CIN: U40109KA2004SGC035177) Registered Office : Corporate Office, # 29, Vijayanagara 2nd stage,

Hinkal, Mysuru – 570 017. Telephone No.: 0821-2417101-10, Fax No.: 0821-2417105

Website: www.cescmysore.org , Email: [email protected] , [email protected]

No. CESC/AS/AGM/2017-18/F-10/536-567 Date: 22.09.2017

Encl : 1) Blank Shorter Consent Notice. 2) Blank Proxy Form.

NOTICE

NOTICE is hereby given that the 12th Annual General Meeting of the Members of the

Chamundeshwari Electricity Supply Corporation Ltd will be held on Tuesday the 26th

September 2017 at 3.00 PM at the registered office of the Corporation, Mysuru to transact

the following business:

ORDINARY BUSINESS:

Item No.1: Consideration of financial statements (including CFS), and the reports of

the Board of Directors and Auditors.

To receive, consider and adopt the financial statement of the Company for the year

ended, 31st March 2017 including the audited Balance Sheet as at 31st March 2017, the

statement of Profit & Loss for the year ended on that date and report of the Board of

Directors (the Board) and Auditors report together with the comments received from the

Comptroller & Auditor General of India under Section 146 (6) of the Companies Act, 2013.

Item No.2: To declare a dividend on equity shares / any other decision if thought fit as

per section 123 of Companies Act 2013.

Item No.3 (a): To consider appointment of Statutory Auditors and to fix their

remuneration.

Item No.3 (b): To consider appointment of Cost Auditors appointed by the Board

pursuant to section 148 (3) of Companies Act 2013 read with relevant rules

thereunder.

By Order of the Board,

for Chamundeshwari Electricity Supply

Corporation Limited

Sd/-

(K. T. HIRIYANNA)

Authorized Signatory

http://www.cescmysore.org/

mailto:[email protected]


iv

To :

1) All the Members (Shareholders) - by name

2) All the Directors - by name

3) The Statutory Auditors - by name

NOTES:

1) A member entitled to attend and vote at the Annual General Meeting is entitled to

appoint a proxy to attend and vote instead of himself and the proxy need not be a

member of the Company (Proxy Form Enclosed).

2) The Company being a Government Company, the Comptroller & Auditors General of

India will appoint the Auditors of the Company for the Year 2016-17 under

section 139 (5) of the Companies Act 2013.

3) The Company being a Govt. Company, the aspect of declaration of dividend will be in

accordance with the recommendation of the Board, decisions of shareholders as

deem fit and in accordance with the provisions of Companies Act, 2013.

4) The Consent for holding the meeting at shorter notice is enclosed. This may be

retransmitted to the Company.

v

CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED (Government of Karnataka undertaking)

(CIN: U40109KA2004SGC035177) Registered Office : Corporate Office, # 29, Vijayanagara 2nd stage,

Hinkal, Mysuru – 570 017. Telephone No.: 0821-2417101-10, Fax No.: 0821-2417105

Website: www.cescmysore.org , Email: [email protected] , [email protected]

NOTES

1. A member entitled to attend and vote at the Annual General Meeting is entitled to

appoint a proxy to attend and vote instead of himself and the proxy need not be a

member of the Company.

2. The Company being a Government Company, the Comptroller & Auditors General of

India has appointed the Auditors of the Company for the Year 2016-17 under section

139(5) of the Companies Act 2013 vide appointment order No.CA V/COY/KARNATAKA,

CESCL(1)/978 Dated 11.08.2016.

3. The Company being a Govt. Company, the aspect of declaration of dividend will be in

accordance with the recommendation of the Board, decisions of Shareholders as deem

fit and in accordance with the provision of Companies Act, 2013.

By Order of the Board,

For Chamundeshwari Electricity Supply

Corporation Limited

Sd/-

Place : Mysuru (K. T. HIRIYANNA)

Date : 22.09.2017 Company Secretary

To :

1) All the Members (Shareholders) - by name

2) All the Directors - by name

3) The Statutory Auditors - by name




vi


(Government of Karnataka undertaking)

(CIN: U40109KA2004SGC035177)

FORM OF PROXY

I/We ................................................................................................................ being a member

/ members of the above mentioned Company hereby appoint .............................. as my / our

proxy to vote for me / us on my / our behalf at the 12th Annual General Meeting to be held on

26.09.2017 the ........................................................ and at any adjournment thereof.

Signed this ............................................... day of September, 2017.

Signature

[Shareholder]

Note :

1) This instrument of proxy shall be deposited at the Regd. Office of the Company not

less than 48 (Forty Eight) hours before the time of holding the aforesaid meeting.

2) A Proxy need not be a member of the Company.

vii


PROFILE OF CESC

Chamundeshwari Electricity Supply Corporation Limited (CESC) with its

Headquarters at Mysore, is a Company incorporated under the Company’s Act – 1956 vide

GO No. EN 98 PSR 2004 Bangalore dated 19th Aug 2004 duly bifurcating MESCOM in

respect of retail supply of electric power for four districts in the State of Karnataka, viz.,

Mysore, Mandya, Chamarajanagar and Hassan. The District of Madikeri was included in the

jurisdiction of CESC as per GOK order dated EN 95 PSR 2005 dated 29.03.06 with effect

from 01.04.2006.

The Company’s capital is fully owned by GOK and its Board of Directors are

nominated by the Government. The operational area of the Company covers a contiguous

area of 27772.82 sq. kms, and serving a population of more than 81.55 Lakhs.

CESC has commenced functioning as Electricity Distribution Company from

01.06.2005. By virtue of Transfer Scheme Rules made under Karnataka Electricity Reforms

Act. 1999, distribution system of 33 KV and below along with specified lines, posts and

personnel have been transferred to the company from the MESCOM.

THE ADMINISTRATIVE AND OPERATIONAL STRUCTURE

The Chamundeshwari Electricity Supply Corporation has 17 numbers of

O & M Divisions, 61 Sub-Divisions and 260 O&M Units.

A. The Divisions of N.R. Mohalla, V.V. Mohalla Mysore, Nanjangudu, Hunsur

comes under the Administrative control of Mysore O & M Circle with Head-

quarters at Mysore.

B. The Divisions of Madikeri, Chamarajanagar, and Kollegal comes under the

Administrative control of Chamarajanagara-Kodagu Circle with Head-quarters at

Mysore.

C. The Divisions of Mandya, Maddur, Pandavapura, Nagamangala and K R Pete

comes under the Administrative control of Mandya circle, with Headquarters at

Mandya.

D. The Divisions of Hassan, Channarayapatna, Arasikere, Holenarasipura and

Sakleshpura comes under the Administrative control of Hassan Circle with

Headquarters at Hassan.

E. The Company has O & M Zone headed by Chief Engineer located at Mysore.

The O & M Zone with Headquarters at Mysore has the Administrative Control of

all the four O & M circles of Mysore, Chamarajanagara-Kodagu, Mandya and

Hassan.

viii

All the Sections, Sub-Divisions, Divisions and Circles as well as O & M Zone works

under the administrative control of the Corporate Office headed by the Managing Director.

He is assisted by the Director (T) and the Chief Financial Officer.

The Company is dedicated to the business of power distribution, has initiated a

number of actions on several fronts. Strategy is being devised to control the distribution

losses by strengthening the energy audit system. Further, all efforts are being made to

meter every installation in the distribution system, despite hostility by a section of

Consumers averse to fixing of meters to their installations.

12th

Annual Report 2016-17

Chamundeshwari Electricity Supply Corporation Limited, Mysuru

1

DIRECTOR’S REPORT FOR FINANCIAL YEAR 2016-17

Dear Members,

1. The Board of Directors have pleasure in presenting the 12th Annual Report of

business and operations of the Corporation, for the year ended 31st March 2017.

2. The Corporation has successfully completed the Twelth year in the business of

distribution of electricity. The Corporation is having its registered Office at Mysore

City with its jurisdiction comprising the districts of Mysore, Hassan, Mandya,

Chamarajanagar and Kodagu.

3. At a glance the Status of the Company as on 31st March 2017 is as follows:

Area of distribution and Supply (Sq.Km.) 27772.82

District 05

Total Population (as per census 2011) 8155369

Number of sub stations 220 KV, 110 KV, 66 KV ( of KPTCL) 204

Number of 33 KV sub stations 05

Number of Distribution Transformers 106280

Length of LT Lines (in CKMs) 81572.83

Length of 11 KV lines ( in CKMs) 51453.92

Length of 33 KV lines (in CKMs) 120.45

4. FINANCIAL PERFORMANCE

Particulars For the year ended

31.3.2017 (` in crs)

For the year ended

31.3.2016 (` in crs)

Income

Revenue from sale of power 3479.03 2775.83

Other income 211.32 215.23

Total income 3690.35 2991.06

Expenditure

Purchase of Power 3266.90 2717.75

Employee Benefit Expense 315.41 327.65

Finance Costs 197.20 150.30

Depreciation 147.57 117.45

Other Expenses 234.06 119.47

Total expenditure 4161.14 3432.63

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2

Particulars For the year ended

31.3.2017 (` in crs)

For the year ended

31.3.2016 (` in crs)

Less Regulatory Income 517.99 464.46

Provision for Taxation 25.75 14.97

Net Profit/Loss 21.44 7.92

5. DIVIDEND

The Board has not proposed any dividend for the financial year ended

31st March 2017.

6. CUSTOMER BASE

The Corporation as on 31st March 2016 had a consumer base of 2850039 Nos.

With the addition of 114841 Nos. new consumers during the year, the number of

consumers as at the end of the year March 2017 is 2964880 Nos.

Tariff Description Total 2016-17 Total 2015-16

LT -1 BJ/KJ 496789 497094

LT-2 (a&b) Lighting & AEH 1775815 1701751

LT-3 Comm. Lighting 226005 214783

LT-4 IP Set 345783 324144

LT-5 LT Industrial 38835 37238

LT-6a (1) Water Supply - VPs / TPs/CMC/TMC 24228 22415

LT-6a (2) Public Lighting - VPs / TPs/CMC/TMC 21194 20132

LT-7 Temporary Supply 34307 30649

LT TOTAL 2962956 2848206

HT-1 Water Supply 125 121

HT-2a HT Industrial 876 845

HT-2b Commercial 566 540

HT-2c Hospital & Educational Institutions 237 214

HT-3a Lift Irrigation 88 81

HT-3b Agricultural / Horticultural Forms 2 2

HT-4 Residential Apartments 12 16

HT-5 Temporary Supply 18 14

HT TOTAL 1924 1833

LT + HT TOTAL 2964880 2850039

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3

Review of Balance Sheet and Profit and Loss Account for the year

ending March 31st 2017

(` in lakhs)

Sl. No. Particulars 31.03.2017 31.03.2016

I Sources of funds

A Share Capital 50856.54 50856.54

B Reserves & Surplus 6395.50 -3510.81

C Share Deposit (pending allotment) 15229.00 1400.00

D Share holders’ fund (A to C) 72481.04 48745.74

1 Non Current Liabilities

(a) Long Term borrowings 100404.03 85330.24

(b) Deferred Tax Liabilities(Net) 9074.61 7169.05

(c) Other long term liabilities 61837.94 55861.14

(d) Long term provisions 0.00 0.00

Sub-total 171316.58 148360.43

2 Current liabilities

(a) Short term borrowings 24013.03 4157.85

(b) Trade Payables

Dues to MSME’s 0.00 0.00

Dues to Other’s 286800.53 231553.78

(c) Other Current liabilities 99120.36 92320.43

(d) Short-term provisions 588.99 0.00

Sub-Total 410522.91 328032.05

TOTAL EQUITY & LIABILITIES 654320.53 525138.22

II Assets

1 Non-Current assets

(a) Fixed Assets

(i) Tangible Assets 229200.49 188993.53

(ii) Intangible assets 515.17 3.31

(iii) Capital work in progress 26019.02 26174.35

(iv) Intangible assets under development 351.20 0.00

(b) Non-Current investments 251.00 251.00

(c) Long term loans and advances 0.00 4.69

(d) Other non-current assets 122017.83 52395.08

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4


Sub Total 378354.71 267821.95

2. Current assets

(a) Current Investments 0.00 0.00

(b) Inventories 5081.52 6831.39

(c) Trade receivables 216031.85 181241.76

(d) Cash and Bank Balances 16728.92 19178.99

(e) Short-term loans and advances 6728.46 12737.14

(f) Other current assets 31395.06 37326.99

Sub-Total 275965.82 257316.27

TOTAL ASSETS 654320.53 525138.22

Share holders Funds:- Compared to previous FY16, the fund has increased

by ` 23735.30 lakhs

ABSTRACT ` In lakhs

Sl.No Particulars FY16-17 FY15-16 Difference

1 Share Capital 50856.54 50856.54 0.00

2 Reserves Surplus 6395.50 -3510.81 9906.30

3 Share Deposit 15229.00 1400.00 13829.00

4 Netoff 4= (1+2+3) 72481.04 48745.74 23735.30

Share Capital: During the year there is no increase in Share Capital.

Reserves and surplus has increased to an extent of ` 9906.30 lakhs due to

Sl.No Particulars ` in lakhs

A Current year Loss / Profit 2144.37

B Consumers contribution towards cost of Capital Assets 15684.61

C Proposed for Net worth Adjustment (3401)

D Less Reversal of Depreciation as per AS-12 4521.68

Difference (A+B-C-D) 9906.30

Share Deposit has increased by ` 13829 lakhs due to infusion of equity during

the Current Year by GOK as Equity investment towards SDP ` 1080 lakhs,

SCSP & TSP ` 3249 lakhs, DTC Metering ` 3000 lakhs & Capex works

` 6500 lakhs.

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5

Long term borrowings: It is increased by ` 15073.79 lakhs. Is due to

withdrawal of balance loan towards NJY Phase-2 projects around ` 9358 lakhs

and for NJY Phase-1 around ` 613 lakhs and additional borrowings towards

CAPEX works around ` 5000 lakhs. The loan details are depicted in Note-4.7.

Deferred Tax Liability(Net) has increased by ` 1905.56 lakhs over the

previous year (The timing difference of depreciation rates between Companies

Act & Income Tax Act)

Other Long Term Liabilities: It is increased by ` 5976.79 lakhs (Net). During

the Year the Initial / Additional Security deposits have been collected to the

extent of ` 5143.97 lakhs and MSD to the extent of ` 23.90 lakhs. The retention

money and Security Deposit from the Contractors amounting to ` 857.65 lakhs

has increased.

Short Term Borrowings: There is an increase in the short term borrowings to

the extent of ` 19855.18 lakhs due to additional borrowing of ` 10000 lakhs

from REC and enhancement of OD by ` 15000 lakhs (From 5000 lakhs to

20000 lakhs) from SBI and utilized towards payment of purchase bills. And loan

repaid during the year is ` 5144.81 lakhs.

Trade Payables: The trade payables have been increased by ` 55246.76

lakhs (net). The case to case increase / decrease in Trade Payables is

depicted in Note-9.

Other Current Liabilities: It has been increased to the extent of ` 6799.93

lakhs, is due to increase in debt service to an extent of ` 3669.12 lakhs,

Interest accrued on borrowings ` 26.46 lakhs, Increase in Retension money

around ` 1933.80 lakhs. The A/c code wise increase / decrease in other

current liabilities is depicted in Note-10.

Short-term provision: It is increased by ` 588.99 lakhs due to provision made

for current year taxes.

Tangible Assets: It has been increased by ` 40206.96 lakhs (Net) due to

categorization of Capital Works during the Year.

Intangible Assets: It has been increased by ` 511.86 lakhs (Net) due to

categorization of software during the Year.

Capital Work in progress: It is decreased by ` 155.32 lakhs. Due to

capitalization of completed works.

Other Non-Current Assets: It is increased by ` 69622.75 lakhs is mainly due

to creation of Regulatory Asset to an extent of ` 63840 lakhs and in FY-16 the

company had accounted ` 51798 lakhs as regulatory asset. In FY-17 the

Company has accounted ` 63840 lakhs as additional regulatory asset by

computing the provisional gap expected to be considered by KERC for

inclusion in the tariff revision during 2017-18 and a sum of ` 12041 lakhs of

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6

regulatory assets which was already created in FY-16 is reversed by retaining

` 34405 lakhs since the same will be recovered in FY-17-18. The total

regulatory asset accounted under Non-Current Assets is ` 98244 lakhs. The

case to case increase / decrease in Non-Current Assets is depicted in Note-19.

Inventories: It is decreased by ` 1749.87 lakhs compared to previous year.

Trade receivables: It is increased by ` 34790.09 lakhs.

a) As per GOK order No. EN 67 PSR 2017 Bangalore dated 31.07.2017 an

amount of ` 9069 lakhs towards old past RE subsidy dues to be transferred

from KPTCL as receivable from GOK against past power purchase dues

payables to KPTCL.

b) Subsidy receivable from GOK towards free supply to BJ / KJ and IP sets

balance to an extent of ` 30579.24 lakhs. The increase / decrease in trade

receivables is depicted in Note-22.

Short term Loans and Advances: It is decreased by ` 6008.67 lakhs mainly

due to adjustment of advance amount paid to contractors / suppliers towards

their final bills.

Other Current Assets: It has been decreased by ` 5931.93 lakhs mainly due

to decrease in receivables towards Energy Balancing cost from HESCOM of

` 3100.44 lakhs & from GESCOM of ` 3154.01 lakhs and recovery of

Regulatory Assets of ` 12041 lakhs.

Ratios


1 Debt: Equity Ratio

(Long Term Borrowings : Equity) 1.52:1 1.63:1

Analysis of Profit and Loss Account (` in lakhs)

Sl.

No. Particulars 31.03.17 31.03.16

Increase/

decrease

Variance

in (%)

A Income

1 Revenue from operations

(Distribution of Power) 347902.86 277583.11 70319.76 25.33

2 Other Income 21132.44 21523.42 -390.98 -1.82

Total Revenue 369035.30 299106.53 69928.78 23.38

B Expenses

1 Purchase of power 326690.70 271774.60 54916.10 20.21

2 Employee Benefits Expense 31541.01 32765.04 -1224.04 -3.74

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Sl.

No. Particulars 31.03.17 31.03.16

Increase/

decrease

Variance

in (%)

3 Finance Costs 19720.03 15030.15 4689.88 31.20

4 Depreciations and amortization

expenses 14757.07 11745.83 3011.24 25.64

5 Other Expenses 23406.14 11947.37 11458.77 95.91

Total Expenses 416114.95 343263.00 72851.95 21.22

C Profit before tax -47079.65 -44156.47

D Regulatory Income / Expenses 51798.60 46446.00 5352.60 11.52

E Tax Expense

Deferred Tax 1905.56 1497.25

Income Tax 669.02 0.00

F Profit after Tax 2144.37 792.28

Total Revenue has increased by 25.33% (` 70319.76 Lakhs) over the

previous year due to increase in sale of units to the extent of 855.05 MU’s and

increase in the installations 114841 & due to revision of tariff.

Other Income has decreased by 1.82% (` 390.98 lakhs) over the previous

year is mainly due to withdrawal interest claimed on RLB dues to an extent of

` 4709.05 lakhs due to securitization of RLB dues.

Power purchase cost has been increased by 20.21% (` 54916.10 lakhs) over

the previous year is due to increase in purchase of energy to an extent of

1099.99 Mus as a result of increase in allocation of CGS energy, increase in

purchase from IEX, Increase in Transmission Charges of KPTCL & PGCIL &

Overdrawal of Energy to an extent of 733.64 Mus which resulted in increase of

Power Purchase Cost to an extent of ` 29440.58 lakhs.

Employee cost has decreased by 3.74% (` 1224.04 lakhs) over the previous

year.

Finance Charges has increased by 31.20% (` 4689.88 lakhs) over the

previous year is due to the payment of interest to commercial banks on debt.

Depreciation and amortization expenses have increased by 25.64%

(` 3011.24 lakhs) due to increase in Capitalization of assets.

Other expenses has increased by 95.91% (` 11458.77 lakhs) over the

previous year due to write-off of interest on RLB dues to an extent of

` 4709.05 lakhs as per GOK order dated 31.03.2017, Short provision for power

purchase to an extent of ` 697.31 lakhs & other expenses relating to prior

12th



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period to an extent of ` 3200 lakhs. The increase / decrease in other expenses

is depicted in Note-22.

Deferred Tax has increased by 27.27% (` 408.31 lakhs) over the previous

year (The timing difference of depreciation rates between Companies Act &

Income Tax Act)

Current Year income tax liability of ` 669.02 lakhs has been accounted.

Regulatory Asset The Company is engaged in operation of Supply of

Electricity to the consumers covered under its jurisdiction. The rates are

regulated by the Honb’le Karnataka Electricity Regulatory Commission (KERC).

As per section 62 of Electricity Act 2003, the CESC is filing tariff application

yearly with Regulatory Commission for determination of tariff. The Regulatory

Commission determines the tariff as per procedures laid in section 64 of

Electricity Act 2003. The Company collects tariff from consumers as approved

in the tariff order issued by the Regulatory Commission. The Honb’le KERC

through its Tariff orders allow recovery of deficits in subsequent periods

besides through truing up orders. In this back ground, the Company has

accounted the regulatory asset of ` 517.99 Crs being recognition of ` 638.40

Crs of additional regulatory asset computed towards the provisional gap

expected to be considered by KERC for recovery in subsequent years and

reversal of ` 120.41 Crs created in FY16. Thus the regulatory Assets as on

31.03.2017 is as follows:

Non Current Asset - ` 982.44 Crs (Previous Year : ` 344.05 Crs)

Other Current Asset - ` Nil (Previous Year : ` 120.41 Crs)

Corporation has incurred Net Profit to an extent of ` 2144.37 lakhs.

7. Power Purchase

During the year 2016-17, the power purchase is 7544.85 MU at a total cost of

`3266.90 Crs. Total energy available for sale is 7204.35 MU. Total sales during

the year was 6260.28 MU. Remaining 944.07 MU was attributable to system

loss.

8. Power Purchase details

A) CESC is purchasing power from generators as per GOK order No.EN 131

PSR 2003 dated 10.05.2005. The power is procured from the following sources

during FY16-17.

a) Central Generating Stations like NTPC, NLC, NPCIL

b) State owned generating stations of KPCL-Hydel & Thermal.

c) Major Independent Power Producer - UPCL

d) Independent power producers from non-conventional sources like wind, Solar

& Mini hydel.

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B) The GOK issues order allocating share to each ESCOM’s for payment purpose

and also power allocation. The energy allocation to CESC for FY16-17 as per

order dated 18.03.2016 is as given below ( EN 22 PSR 2016 B’lore)

Sl

No. Source % Share of allocation

Avg.Power

Purchase Cost

in paise / Kwh

1 (a) KPCL Hydel: 22.723% & 11.0531% 95

(b) KPCL Thermal 4.5462% & 11.0531% 478

RTPS 1 to 7 4.5462% 427

RTPS VIII 11.0531% 467

BTPS Unit I 11.0531% 629

BTPS Unit II 11.0531% 541

(c) KPC Diesel Plant

2. Central Generating Stations:

(a) NTPC 11.0531% 338

(b) NLC 11.0531% 429

(c) Kaiga 11.0531% 321

(d) MAPS 11.0531% 218

3. Major IPPs

Udupi Power Company Ltd. 11.0531% 449

4. Minor IPPs (NCE Projects)- Co gen 445

Biomass No allocation, Exclusive

Purchase

489

Mini Hydel No allocation, Exclusive

Purchase

336

Wind No allocation, Exclusive

Purchase

352

UI 269

Medium Term 11.0531% 431

Short Term 11.0531% & 12.5% 405

Sec11 502

Solar Roof Top Exclusive Purchase 980

The above allocation is applicable from 01.04.2016 to 31.03.2017.

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C). Comparison of source wise power purchase cost during FY17 & FY16:

Source

2016-17 2015-16

Energy

(MU)

Cost

` (lakhs)

Average /

unit

Energy

(MU)

Cost

` (lakhs)

Average/

unit

KPCL-Hydel 1047.85 9964.60 0.95 1030.89 11481.99 1.114

KPCL-Thermal 1269.42 60648.92 4.78 1313.98 59348.84 4.517

CGS 2472.78 88481.52 3.58 1601.00 48877.04 3.053

IPPS 818.85 36790.75 4.49 991.82 41635.83 4.198

NCE 450.43 17841.78 3.96 457.23 15811.46 3.458

Medium & Short term

power purchase 418.44 17941.28 4.29 480.05 24898.21 5.187

Peak Power (IEX) 93.84 2871.72 3.06 0.57 25.96 4.562

Bundled Power 67.85 3136.40 4.62 67.39 2883.98 4.280

Captive Power 0.00 0.00 0.00 0.00 0.00 0.00

KPTCL Transmission

Charges 34650.33 0.00 30542.22 0.00

PGCIL Transmission

Charges 15511.27 0.00 10481.91 0.00

UI Charges & Other

Expenses 170.32 9031.42 5.30 471.36 23446.94 4.974

SLDC Charges 240.00 0.00 215.72 0.00

Solar Roof Top 1.43 140.13 9.80 0.04 3.74 9.752

Total 6811.21 297250.12 4.364 6414.32 269653.85 4.204

Energy Balancing

adjustment 733.64 29440.58 4.01 30.54 2120.75 6.945

Sub Total 733.64 29440.58 4.01 30.54 2120.75 6.945

Energy balancing

adjustment of previous

years due to change in

quantity & rate

0.00 0.00 0.00 0.00 0.00 0.00

Net Energy & Amount 7544.85 326690.70 4.329 6444.86 271774.60 4.217

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D) Transmission Charges:

CESC is making payment of transmission charges to KPTCL and PGCIL.

The Transmission Charges being paid to KPTCL is on MW basis as approved by

KERC and for PGCIL as approved by CERC.

9. An overview of the performance of CESC is as under:

Sl

No Particulars Measure 2016-17 2015-16 2014-15 2013-14 2012-13

1. Total Lines & TCs added:

a. DTCs erected Nos. 12022 10172 10057 10829 6004

b. 11 KV HT lines RKms 4472.58 4323.80 5164.98 4514.02 1726.42

c. LT lines RKms 2195.03 4260.55 1842.36 1800.56 1082.26

d. Reconductring of HT Lines RKms 165.10 266.45 173.70 167.52 35.73

e. Reconductring of LT Lines RKms - - - - -

2. DTC Failures % 9.26 10.76 12.33 11.24 12.84

3 RE Works:

a. Electrification of Hamlets

(DDG) Nos. 3 0 0 0 330

b. Electrification of

Basthies/JCs/Tandas Nos. 0 0 0 0 356

c. Electrification of Tribal

Colonies Nos. 0 0 0 0 1

d. Electrification of

Un-electrified villages Nos. 2 0 0 0 0

4 Servicing of

a Drinking WSS Nos. 1473 748 1310 2856 1398

b. Ganga Kalyana Schemes Nos. 3020 2049 1808 3455 1878

5 IP Sets Serviced

a. New IP Sets Nos. 18382 7131 14666 1534 1602

b. Regularization of

Unauthorized IP sets Nos. 3331 2887 4969 19964 6723

6 BJ/KJ installations serviced Nos. 0 0 657 2464 4269

7 Total Energy Purchased MU 7544.85 6444.86 6299.35 6229.97 6149.75

8 Total Energy @ Interface

Point MU 7204.35 6256.07 6084.89 5995.61 5857.84

9 Total Energy Sales MU 6260.28 5405.23 5240.07 5112.33 4974.93

10 Distribution loss % 13.10 13.60 13.88 14.73 15.07

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PERFORMANCE OF PROJECTS

“Development & deployment of web based Feeder wise Data Analysis and

Outage Management along with support and maintenance for a period of one year in

CESC”

1.0 Scope of work:

(a) Feeder wise Data Analysis

1. SCADA System is installed covering the entire power system of Karnataka up

to the 11KV feeder level and all the major generation units. This data is

collected at the time interval of ten seconds and stored at the time interval of

every minute in oracle database. An application that will help in analyzing the

raw data being collected by the SCADA system for 11KV feeders and major

generation assets.

2. Application is able to read raw data stored on a server in oracle database and

able to support the following reporting functions

(i) Historical Reports –

1) Duration of time a feeder has been shutdown in a given time interval.

2) Number of interruptions suffered by each feeder in a given time interval.

3) Comparative analysis on performance of feeders in different division,

districts.

4) Total, average and peak load on each feeder.

5) Report the worst performing feeders in each zone, division.

6) Report the total energy generation by each source during a given time

interval.

7) Report the generation mix during a given time interval.

(ii) Current System Status Reports-

1) Actual demand vs scheduled and forecasted demand.

2) Actual wind and solar power vs forecasted power.

3) Current outages on the feeders.

3. All the reports have the options to be exported as CSV files.

4. The application supports automated daily report generation and sending them

through email.

(b) Outage Management

1. Application that will support the process of 11KV feeder shutdown during the

event of unscheduled outage. Unscheduled outage can result because of the

loss of a generating units or a loss of a major transmission element.

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2. The State Load Dispatch Centre (SLDC) is the central body responsible for

balancing the load and supply in the grid. During such event, SLDC is informed

about the shortfall in the generation, and the required load relief for the balance

of the grid. SLDC then asks each distribution company in the state to curtail the

load by shutting down the 11KV feeders, enough to meet the required load

relief.

3. SCADA system is installed covering the entire power system of Karnataka up to

the 11KV feeder level. This data is collected at the time interval of ten seconds

and stored at the time interval of every minute. Looking at the history of outages

of feeder that include the outage duration and the number of interruptions, the

applications makes the selection of the feeders, so that all feeders over the time

have suffered the same duration of outage, as well as the number of

interruptions suffered by each feeder.

4. Also during such event, a close coordination is required between State Load

Dispatch Centre and Distribution Control Centre at CESC, to select and

shutdown the feeders to provide a load relief required for the grid stability and

also for the adherence to the grid code.

5. The application is capable to cover all the feeders in CESC area.

i) Through the interface exposed to CESC, they can access the protocol and

modify the priority listing and logic used in the indiscriminate selection of the

11KV feeders to shut down.

ii) The program gives the quantum of load to be shed by CESC by keeping in

mind the present quantum of over drawl/underdrawl which will be intimated

to SLDC about the shut down of selected feeders.

iii) Communication to relevant stakeholders through SMS & E-mail.

iv) CESC is able to access historic information on the total outage duration,

and the number of interruption, on each 11KV feeders in their distribution

area.

v) The generation of reports as required by CESC from time to time.

vi) The application software designed is compatible for third party software

integration like TRM, PGRS and other relevant system at CESC.

Rural Feeder monitoring through National Power Portal (NPP)

Ministry of Power, Government of India has decided to bring data from 11KV Rural

feeders to National Power Portal to know the availability and quality of Power supply in Rural

areas. As a pilot project, it has been decided that the data from the states including

Karnataka where data is already being captured at central location(SCADA) may be

immediately brought to National Power Portal.

In order to achieve the same the Master Data is furnished to NIC and after

acceptance the Transaction data during the month is also pushed to NPP.

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Implementation of Outage Management System(Urja-Mitra) in CESC

Urja-Mitra provides a web and app enabled platform, establishing links between call

centres, CESC field staff and CESC consumers for facilitation of outage dissemination

information of all consumers through SMS and data.

Urja-Mitra is a single platform developed by REC to disseminate all types of Outages

in both Urban and Rural areas.

CESC has implemented Urja-Mitra and scheduled outages are being broadcasted

through this portal.

Public Grievance Redress System (PGRS) in CESC

The consumers of CESC can register electricity complaints 24X7 by reaching CESC

Helpline “1912”.

Web based PGRS (Public Grievance Redress system) Software is installed

succesfully and working satisfactorily enabling fast complaint registration and

redressal at customer care center from 22.09.2015.

The website address is http://www.cescmysorepgrs.com. Provision of consumer

complaints registration through various sources like; helpline, SMS, Email, Web and

Retrieving of consumer history is there in the software.

A complaint received at customer care center will be registered immediately in the

software and system generated docket numbers are intimated simultaneously to

consumers and to the concerned sub divisional officer/ section officer or local

service station automatically via SMS to their mobile numbers.

Once the complaint is resolved, the status of complaint will be updated by

concerned sub divisional officer/ section officer / local service station or customer

care executive, on confirmation from the complaint and the docket will be closed.

The consumers can also track the status of their complaint through online.

CESC Helpline “1912” is made toll free from 6-7-2016.

http://www.cescmysorepgrs.com/

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Ag-DSM programme:

1337 Nos of IP sets of Malavalli Taluk were replaced by Energy Efficient Pump sets

(EEP) in March 2015. The energy savings achieved from this project is around 37%. The

energy savings is calculated on the basis of difference of energy consumed by old pumps

and after installation of Energy Efficient Pumps for the same amount of water output. The bill

for the savings is computed on monthly basis with 6 hours operation of pump sets /day for

10 months in a year. The savings is shared on mutually agreed basis of 90% to EESL and

10% to CESC at the KERC determined rate from time to time.

Energy Savings:

Sl

No

DPR Cost

` in lakhs Year

Energy Consumption

in Units

Annual Energy

Savings in

KWH

%

Savings Before After

1

454.99

2015-16 (After

implementation) 15359796 9691308 5668488 36.9

2

2016-17 (After 1st

Measurement &

Verification)

15359796 9807230 5552566 36.15

AgDSM in Malavalli

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Unnat Jyothi by Affordable LEDs for All (UJALA) (DELP):

Chamundeshwari Electricity Supply Corporation Ltd (CESC) is implementing Unnat

Jyothi by Affordable LEDs for All (UJALA) popularly known as ‘‘Hosa Belaku’’ to provide high

quality 9W LED bulbs at an affordable rate to consumers. Energy Department, Government

of Karnataka has designated Energy Efficiency Services Limited (EESL), a public sector

entity under the administrative control of Ministry of Power as implementing agency for

UJALA in the state. The programme was launched on 11.12.2015 in Mysore by Hon’ble

Chief Minister of Karnataka.

Under this scheme, 9W LED bulbs are being provided to domestic consumers of

CESC at an affordable rate i.e @ ` 70/- per bulb.

Further the LED bulbs carry a technical warranty for 3 years against any defects.

The market price of these bulbs is between ` 150 - 200. The replacement would benefit

consumers between ` 120 - 200 (based on whether CFL or incandescent bulb is replaced)

every year. Therefore the simple payback of the cost of LED bulbs, at ` 70/- for the

consumers will be 7-8 months through saving in electricity bills.

Around 64 lakh LED bulbs of 9W capacity are being planned to distribute through M/s

EESL each at cost of ` 70/- only to consumers. This will have an annual energy savings of

126 MU.

Energy Savings is as follows:

Sl.

No Particulars Unit

As per

Survey

As per Actual

Distribution

1 Number of LEDs bulbs Nos 6360934 3063223

2

Average Wattage of 60W ICL and 14W

CFL (Assumed penetration in the ratio of

30%:70% of ICLs:CFLs)

Watt 27.8 27.8

3 Wattage of LED Watt 9 9

4 Power saving Watt 18.8 18.8

5 Hours of Usage Hrs/day 3.5 3.5

6 Operating days per year Days/year 300 300

7 Energy saved per LED per Day kWh 0.0658 0.0658

8 Energy saved per LED per year kWh 19.74 19.74

9 Total Energy saved per year Million kWh 125.56 60.47

10 Total annual savings in power purchase

cost (` 4.31 per kWh) ` Cr. 54.12 26.06

11 Potential reductions in peak load (apx) MW 119.00 58.00

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UJALA Programme launching at Mysore

Transformer Testing Centers at CESC:

A committee was formed for standardizing the common distribution transformers

technical specifications for Energy efficiency level-1 3 Star rated transformers in all

ESCOMs and the committee deliberated the various points and has come up with 30 point

technical specification list to be adopted uniformly in all ESCOMs. Energy Department, GoK

has instructed all ESCOMs for implementation of this committee report for all future

procurements.

As per the Govt Order dated 05.10.2015, 4no’s Transformer Testing Centers have

been established by providing new technological sophisticated testing equipment’s to carry

out the testing of transformers at Mysore, CH Nagar, Mandya and Hassan Circle

jurisdictions. CESC has invested ` 33.0 lakhs for establishing each test center. As on

June-17 3591 No’s of transformers are tested in the testing centers. CESC has placed

purchase order on 27.02.2017 to establish Transformer testing centers at another 11

Divisions at a total Cost of ` 2.64 crores. The instructions have been given for compulsory

testing of transformers for the transformers procured for TTK works/Company

purchase/Repaired DTC’s in future.

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Transformer testing center at Mandya

I. ON-GOING WORKS

1. Smart Grid Pilot Project:

Smart Grid is an initiation of Ministry of Power, Govt. of India for establishing Smart

Grid in India for increasing power availability, reducing AT&C losses and optimal utilization of

resources for sustainable growth.

In order to develop Smart Grid in India MoP has taken up pilot Smart Grid projects as

suggested by India Smart Grid Task Force. MoP has selected 14 Pilots from the different

state utilities, CESC is one among 14 pilots selected for implementation Smart Grid Pilot

Project.

Smart Grid enables,

• Highly Flexible, Efficient, Optimized Operations

• Full support for market based Demand Side Management

• Integration of alternate Generation and Distributed Energy resources

• New Products, Markets and Services

• Quality Power

• Optimum Asset Utilization and Operations efficiency

• Resilience against to system disturbances and calamities.

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Pilot Area: V V Mohalla Sub-division:

Area of implementation V.V.Mohalla, Metagally, Hebbal, Vijaya Nagara,

Hootagally and Ilawala consists of 14 no of

11KV Feeders of V.V.Mohalla Division of

Mysore City

Date of Award for System Integrator 30-04-2014, M/s Enzen Global Solutions,

Bengaluru

Total approved cost (` in Cr.) 32.59

GoI contribution (@ 50 % ` in Cr.): 16.30

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Consumer type Consumers Consumption %

LT1-Bhagya Jyoti 538 0.1%

LT2-Domestic 19653 15.0%

LT3-Commercial 2410 5.0%

LT4-Agri - IP 580 2.8%

LT5-Industrial 677 11.7%

LT6-Street Light 316 2.5%

LT-7 Temporary 233 0.4%

HT 125 62.6%

Total 24532 100%

Status as at the end of March-2017:

• “Hardware design, Network configuration & test procedures” and “Software

solution, Functional specifications, data flow exchange” is approved.

• Smart Grid Control Center is established with all server hardware and software.

• 18750 Single phase meters are supplied and 18050 are installed.

• Three Phase meters work is under progress.

• 190 TMU are supplied and 160 are installed and communiciation is achieved.

The project to be expected to complete in September – 2017.

2. Niranthara Jyothi Yojana (NJY):

Niranthara Jyothi Yojana a prestigious flagship scheme of Government of Karnataka

being implemented in CESC under Two Phases, for providing continuous power supply to

non-agricultural loads in rural areas. The project is being implemented in 24 taluks in CESC

Jurisdiction, through construction of new 11KV feeders and providing distribution

transformers for segregation of non-agricultural loads & agricultural loads in rural areas.

NJY Phase-1 is being implemented in 10 taluks on partial turnkey basis at an

estimated cost of ` 248 crores with a proposal for construction of 161 feeders covering 3358

Nos of villages.

Out of 161 Nos. of feeders. 26 Nos. feeders works are proposed to be short closed

as per the 45th Board meeting resolution. DWAs are issued to takeup these feeder works

under Deen Dayal Upadhyay Gram Jyothi Yojana (DDUGJY) Scheme.

NJY Phase-2 is being implemented in 14 taluks on Total turnkey basis and works are

awarded at DWA cost of ` 500 crores with a proposal for construction of 235 feeders

covering 3440 Nos of villages.

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NJY Phase-1: Out of 135 feeders 130 Nos of feeder works are completed, work is

under progress in 5 feeders and is expected to complete by Sep-2017.

NJY Phase-2: Out of 235 feeders proposed 211 Nos of feeder works are completed

and work is under progress in 14 feeders. Balance 10 Nos feeders works are to be taken up

and is expected to complete by Sept-2017.

3. Restructured Accelerated Power Development And Reforms Programme

(R-APDRP):

Even after implementing APDRP scheme the absolute level of losses were still at a

higher level and needed further efforts for achieving lower loss levels. Also reliable &

verifiable baseline data for revenue & energy were required for verifying exact AT&C losses

in an area and further detection of commercial and technical loss pockets.

In order to achieve the above objective, the need for adoption of integrated IT system

by utilities was recognized and hence, MOP, GOI launched Restructured APDRP

(R-APDRP) in July 2008 as a central sector scheme for XI Plan.

Covers 12 towns viz., Mysore, Nanjangud, KR Nagar, Hunsur, Chamarajanagar,

Kollegala, Madikeri, Malavalli, Hassan, Arasikere, CR Patna, Mandya.

The intension of the project was to attain and maintain the AT&C loss level for all

12 Towns at less than 15%. The AT&C loss report are generated automatically through

system at different levels of Administrative hierarchy which are getting monitored and

improved on a monthly basis.

IT implementing agency along with ESCOM’s and IT consultants are working

together for resolution of all major issues related to the IT modules faced by end user

through a systematic IT process framework and make the project a success.

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Part-A:

Establishment of IT enabled system for achieving reliable & verifiable baseline data

system. The work has been awarded to M/s. Infosys Technologies Ltd., Bengaluru as IT

implementing Agency with a cost of `32.51 Crs.

Role of ITIA (Infosys):

The Part A scheme has 17 major modules followed by IT Hardware with an

implementation of Data Centre (DC) and Data Recovery Centre (DR) situated at Bengaluru

(DC) and Chennai (DR).

The Major modules as part of R-APDRP Scheme are

• Web Self Service

• System Security Requirement

• Management Information System

• New Connection

• Collections

• Development of Commercial DB of Consumers

• Disconnection & Dismantling

• GIS based customer indexing and asset mapping

• Identity and Access Management system

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• Billing

• GIS based integrated network analysis module

• Asset Management

• Maintenance management

• Meter Data Acquisition

• Energy Audit

• Metering

• Centralized Customer Care

All the modules are deployed on Production Server and are in use from the date of

full Stack roll out for respective 12 towns. Dedicated Track leads are allotted to look in to the

progress, usage and resolution of issues for all 12 towns by using IT applications.

As there are 5 ESCOM’s in Karnataka State, to make common decision BESCOM

has been chosen as the Nodal office where respective Track-leads of each module

co-ordinate and keep informed about the new changes and issue to be resolved and

incorporated.


All 12 Towns has been declared Go-live with Full stack application. Network

connectivity and office infrastructure has been completed in all towns.

1912 Helpline number for customer complaints /services has been implemented in all

ESCOM’s and are functioning to the expectations.

Provision of Online Payments of electricity bills and logging of customer services like

New Connection, Name Change, Power Cuts, Power Problems, Faults etc., are made

available through online portal (www.cescmysore.in/www.cescmysore.org) for all 12 towns.

This would improve the facilities and quality of services provided to customers.

The Third party inspection by M/s PGCIL for CESC is completed on 15/07/2017 and

reports for the same also submitted. The entire project related activities in all aspects would

be completed within Sept-2017.

Part-B:

Part-B deals with regular distribution system strengthening & up gradation Projects.

The focus for Part-B shall be loss reduction on sustainable basis. Projects Cost: ` 221.10

Crs. The Activities covered is as follows:

Strengthening of electrical distribution network

Replacement of Single phase electro-mechanical by electro-static consumer meters.

Replacement of Three phase electro-mechanical by electro-static consumer meters.

http://www.cescmysore.in/


12th



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In all towns consumer meter replacement works have been completed and

strengthening of electrical distribution work is completed in 10 towns (Nanjangud,

KR Nagar, Hunsur, Mandya, Malavalli, Chamarajanagar, Kollegala, Hassan, Arasikere and

CR Patna). The work of Strengthening of electrical distribution network in 2 towns

(Mysore and Madikeri) were short closed due to non-completion by the agencies, the

balance works were retendered and work awards was issued. The works are under progress

and the work will be completed within Sept-2017.

4. Rajiv Gandhi Grameena Vidyuth Yojane - XII Plan (RGGVY-XII):

RGGVY 12th plan is being implemented in CESC with scope of work to complete

spillover works of projects sanctioned in X & XI Plan. Electrification of un-electrified / partially

electrified habitations of population 100 & above associated with main villages which are not

covered under RGGVY X & XI Plan.

Access to electricity to all Households (including BPL Households) in the above

Villages / Habitations.

Out of 5 districts in CESC, RGGVY works sanctioned under 12th plan to Mysuru

Mandya district are awarded & works are under progress. RGGVY works in other 3 districts

of Hassan Chamarajanagar and Kodagu districts are not sanctioned by MOP.

District Mysuru Mandya

Sanctioned Cost ` 18.84 Crs ` 12.48 Crs

Habitations covered 1624 Nos. 1610 Nos.


For Mysuru district works, LOA is issued on 15.11.2014 and DWA is issued on

29.12.2014 to L1 bidder M/S Shreeshwar Electricals Private Ltd., Dharwad. Work is under

progress.

2339 BPL House Holds are electrified out of 25,098 BPL HHs in Mysuru and Mandya

districts.

Time Schedule for completion of the Projects is 24 Months from the date of LOA.

Further extention of time period to complete the works is given upto Sept-2017 by M/s REC.

5. DTC Thread through Metering:

For Energy Audit purpose the tenders were invited for 14000 nos. of Supply,

Installation, Commissioning and Maintenance of Composite Thread through Type Meter of

Class 1.0 having AMR compliant with associated CT’s, Modem and other materials for DTC

metering works under competitive bidding on Supply, Erection and 5 years of Maintenance

12th



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basis for Mysore City Circle, O&M Circle Mysore, Mandya and Hassan on par with

BESCOM.

Further, after processing of tenders M/s Asian Fab Tech Limited, Bengaluru-58 in

joint venture with M/s. Secure Meters is selected as L1 bidder and Detailed work awards

were issued on 23.02.2015.

Sl No. Circle Completion period No. of meters Total cost in `

1 O&M, Hassan 9 months 7000 31,95,65,560

2 O&M, Mandya 6 months 1500 6,84,82,870

3 O&M, Mysore 9 months 3500 15,97,85,237

4 Works, Mysore 9 months 2000 9,13,11,534

Total

14000 63,91,45,201


14000 Nos. of Thread through meters are supplied. work is completed in 2 circles.

Work is under progress in remaining 2 circles.

6. Shifting of consumer meters from inside to outside the premises and fixing of

SMC Box

Work has been awarded for Supply, installation, and commissioning of SMC Boxes

by Shifting of existing Single Phase Energy meter position from inside to outside the

consumer premises & to accessible point outside the premises with facilitating SMC Box with

meter & accessories in RSD-1 & RSD-2, Hassan on total turnkey basis to

M/s. RMC Switchgear Limited, Jaipur- 17, Completion period : 4 months (upto

26.06.2015).

Activity-1: Supply, installation and commissioning of 33,400 Metering Box, Shifting of

existing single phase Energy meter from inside to outside the premises and facilitating the

SMC Box to the meter at accessible point for easy meter reading.

Activity-2: Supply, installation and commissioning of 30,615 Metering Box, facilitating

the SMC Box to the existing single phase Energy meters at outside the premises.


Activity-1 Activity-2 Total

33400 22598 55998

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II. NEW WORKS TAKEN-UP:

1. De-centralized Distributed Generation (DDG):

Ministry of power, Government of India has formulated decentralized Distributed

Generation (DDG) under DDUGJY ( Erstwhile scheme under XII plan RGGVY scheme)

for providing electricity to remote villages / habitations coming under forest area where

electricity grid connectivity is not feasible and cost effective.

The object of this scheme is to provide house lighting, street lights and drinking water

supply connections through solar power plants for attaining goal of providing access to

electricity to all households as per National Electricity policy. CESC has identified and

prepared DPR for Off Grid Electrification of 66 un-electrified habitations including 6 UE

Villages covering 2772 BPL Households.

REC earlier Sanctioned Amount : ` 12.61 Crores

REC Revised Sanctioned Amount : ` 19.62 Crores

Project cost awarded : ` 20.74 Crores

25 nos. projects for electrification of 29 hamlets based on Solar PV technology:

Sl.

No. District Taluk

Total

Hamlets BPL HH Street lights

1 Madikeri Virajpete 7 357 105

2 Mysore HD Kote-Periyapatna 11 480 149

3 Chamarajanagar Chamarajanagar 3 156 35

4 Chamarajanagar Kollegala 8 546 155

Total 29 1539 444


First Phase

Under this 29 habitations including 04 Nos. of UE villages through Off-Grid

(Micro grid) PV Solar System covering 1539 BPL Households were awarded in 4 packages

on M/s Navya Technologies, Mumbai and M/s Sunedison, Chennai for ` 20.74 Crores on

16.11.2015 and 02.01.2016 for a time line of 12 Months.

Four Nos of Hamlets commissioned covering 197 HHs and work is under progress in

one UE village and 3 hamlets and for remaining 21 hamlets forest clearance from additional

Director General of Forest (Wild life) Ministry of Environment & forest, Wildlife Division New

Delhi from under secretary to Government, Forest, Ecology and Environment Department on

24.08.2016.

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12 Nos of Habitations (including 2 UE villages) covering 829 HHs were sanctioned by

MoP, REC, which were awarded to M/s Deepa Solar System Pvt. Bangalore for ` 6.99

Crores on 21.01.2017 with time line of 4 months including 25 Hamlets covering 404 Hamlets

(Proposed yet to be sanctioned by REC) through Stand Alone Solar PV Module Rooftop

System.

Two Nos of UE Villages are completed and commissioned electrifying 13 HHs.

2. Integrated Power Development Scheme (IPDS)

Integrated Power Development Scheme (IPDS) is being implemented in Mysore,

Chamarajanagar-Kodagu, Mandya and Hassan circles covering total 33 statutory Towns in

the jurisdiction of CESC.

The main objectives of the project are;

i. Providing reliable and quality power supply in an efficient manner in urban areas.

ii. Efficient management of Distribution sector in urban areas.

iii. AT & C loss reduction as per trajectory finalized by MOP.

iv. Ministry of Power, GOI has sanctioned the IPDS works vide Ltr No: 26/1/2014-

APDRP Dtd: 03.12.2014 under Central Government Scheme, DPR cost of `170.03

Crores.

Approved DPR Cost: ` 170.03 Crores covering 33 towns viz., Mysuru, Nanjangud,

T.Narasipura, Bannur, Hunsur, K.R.Nagara, Periyapatna, H.D.Kote, Saraguru,

Chamarajanagara, Kollegala, Gundlupet, Hanuru, Yalanduru, Madikeri, Somavarapet,

Virajpet, Kushalnagar, Mandya, Maddur, Malavalli, Pandavapura, Srirangapatna,

Krishnarajpet, Nagamangala, Hassan, Arsikere, Channarayapatna, Alur, Belur, S.K. Pura,

H.N. Pura & Arakalagud.


The Detailed Work Awards (DWA) are issued for three circles for execution of works

except metering activities. For metering activity tender is invited and will be awarded after

approval of Board.

The details of DWA issued for strengthening of distribution system are as follows

Circle Contractor Name for

strengthening works

DWA No.:

IPDS DWA date

DWA Amount

in ` Crores

Mysuru M/s Sangamitra constructions,

AP 1 & 2 13.02.2017 35.74

Mandya M/s Skilltech Engineers &

Contractors Pvt Ltd., Mysore 5 & 6 09.03.2017 37.94

Hassan M/s Pavani Controls & Panels

Ltd., Hyderabad 3 & 4 28.02.2017 28.52

Total 102.20

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Detailed Work Award for Chamarajanagar-Kodagu circle amounting to ` 39.08

Crores will be issued after declaration of bi-election results.

Further to this works of providing solar roof top on Government buildings

under IPDS is awarded as detailed below;

Circle Contractor Name for

strengthening works DWA No.: DWA date

DWA Amount

in ` Crores

Mysuru M/s Naviya Technologies, Mumbai CYS-1367 09.03.2017 15.14

3. Deen Dayal Upadyay Grameena Jyothi Yojane (DDUGJY):

Govt. of India has launched Deen Dayal Upadyay Grameena Jyothi Yojane for the

rural areas with the following activities :

Separation of agriculture and non-agriculture feeders.

Strengthening and augmentation of sub-transmission and distribution.

Metering

Rural electrification (including SAGY- Sansad Adarsh Grameena Yojana)

As per guidelines issued by Ministry of Power, Government of India Need

Assessment Document (NAD) was submitted to M/s REC through Energy Department

Government of Karnataka. NAD are given for 5 districts of Mysuru, Mandya,

Chamarajanagar, Kodagu & Hassan amounting to ` 2859 Crores. Subsequently, DPR’s

were submitted for ` 567.26 crores, out of which project cost is sanctioned for ` 278.89

Crores.

The details of District wise and activity wise amount is as detailed below:

(` in Cr.)

District SAGY Access

to RHHs

Feeder

Separation

System

Strengthening Metering

Total

cost

PMA

charges

Total cost

including PMA

Mysuru 2.83 3.30 27.59 0.71 25.50 59.93 0.30 60.23

Kodagu 0.00 6.00 5.62 1.00 3.50 16.12 0.08 16.20

Chamaraja

Nagar 0.00 6.00 20.55 1.01 22.28 49.84 0.25 50.09

Mandya 0.00 3.25 44.51 0.75 34.48 82.99 0.41 83.40

Hassan 0.59 10.96 25.07 2.59 30.80 70.01 0.35 70.36

Total 3.42 29.51 123.34 6.06 116.56 278.89 1.39 280.29

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29

The details of work proposed under SAGY is as detailed below:

MP

Constituency

Name of Hon’ble

Member of

Parliament

Name of SAGY

Gram Panchayat

selected by MP

No. of

villages

Amount required

for Electrification

works in SAGY

villages in ` lakhs

Mysuru & Kodagu Sri.Pratap Simha Karimuddanahally 11 83.66

Chamarajanagar Sri.R.Dhruvanarayan DB Kuppe 27 199.77

Hassan Sri.HD Devegowda Chennangihalli

& Kabballi 30 59.04

Total 68 342.47


The Detailed Work Awards (DWA) are issued for execution of works except metering

activities. For metering activity tender is invited and will be awarded after approval of Board.

The details of DWA issued are as follows:

District Contractor Name DWA No.:

DDUGJY DWA date

DWA Amount

in ` Crores

Mysuru M/s Bajaj Electricals Ltd., Mumbai 01 & 02 13.02.2017 38.89

Kodagu M/s TV Subbaiah, Hubli 09 & 10 13.03.2017 13.89

Chamaraj

Nagar

M/s Pavani Controls & Panels Ltd.,

Hyderabad 03 & 04 28.02.2017 29.20

Mandya M/s Skilltech Engineers &

Contractors Pvt Ltd., Mysore 07 & 08 09.03.2017 58.55

Hassan M/s Bajaj Electricals Ltd., Mumbai 05 & 06 02.03.2017 41.18

Total 181.71

Vigilance activities:

i) CESC Vigilance Police Stations are located at Mysore, Mandya, Chamarajanagar,

Hassan and Madikeri. Superintendent of Police is incharge of police wing and

Executive Engineer (El) is leading the Technical wing of the Vigilance. The

activities of the vigilance wing are as follows.

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ii) During the financial year 2016-17 the Vigilance Wing had achieved the following

performance:-

Sl.No. Particulars 2016-17 2015-16

1 No. of Installations inspected 8979 19440

2 No of Cognizable cases booked 715 862

3 BBC raised in Cognizable cases in ` lakhs 111.64 157.73

4 BBC collected in Cognizable cases in ` lakhs (including

opening balance)

96.57 141.51

5 Balance (3-4) 15.07 16.22

6 Compounding Charges levied in ` lakhs 29.45 52.69

7 Compounding charges collected in ` lakhs 27.86 48.85

8 Balance (6-7) 1.59 3.84

9 No of miscellaneous cases booked 337 33

10 BBC raised in Miscellaneous cases in ` lakhs 360.12 10.83

11 BBC collected in Misc. Cases in ` lakhs 147.82 1.09

12 Balance (10-11) 212.29 9.74

13 Total BBC raised in Cognizable, Miscellaneous &

Compounding levied in ` lakhs

501.21 221.26

14 Total BBC collected in Cognizable, Miscellaneous &

Compounding in ` lakhs

272.25 191.45

15 Units pilfered in Cognizable cases 1064482 1532501

16 Units pilfered in Miscellaneous cases 3249706 74982

Mass raids / Surprise raids are being conducted at various places in the jurisdiction of

CESC in consultation with the Circle / Division level field Officers. However, as per

Electricity Act, 2003 there is an ambiguity in respect of registering theft cases by

vigilance wing. This issue is being pursued with Government.

Vendor approval:

The approval issued to those who are manufacturing electrical materials/equipments as

per IS/CESC specification. To ensure the quality of the materials supplied to CESC, it is

necessary to ascertain the worthiness of the suppliers. To bring in more transparency,

expertise and quality, the vendor analysis/assessment and inspection has been

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31

entrusted to CPRI, Bangalore. Total 125 firms got vendor approval from CESC.

Approved vendor list is made available in CESC web site www.cescmysore.org

Details of Power Purchase Agreements from Renewable Energy Generators

CESC Mysore was having 96 power purchase agreement with Renewable Energy

Generators at the end of year 2015-16.

The total power purchase agreement with Renewable Energy Generators at the end of

year 2016-17 is as given below;

PPAs As on 31.3.2017 As on 31.3.2016

Remarks Nos MW Nos MW

Wind 51 121.25 51 121.25

Mini Hydel 20 122.50 20 122.50 01 to be commissioned

Cogen 4 65.22 03 47.22 02 to be commissioned

Cogen (Medium Term) 27 53.21 - -

Biomass 2 15.6 03 17.60 01 Terminated

Solar PV 16 233 07 88.00 09 To be commissioned

01 case pending in APTEL

Agricultural Land

Owners Solar Projects 12 27 12 27 5 to be commissioned

Further, 120 number of Solar Roof Top projects are commissioned during 2016-17 with

a Cumulative Capacity of 3.76 MW & Net export of 1.432 MU to CESC during 16-17.

CESC Mysore has been allotted 11.6% of Solar power from 2000 MW Pavagada Solar

Park & 11.06% from 970 MW solar projects under VGF scheme.

CESC Mysore has to fulfill renewable power purchase obligation as per KERC orders.

The details of the obligations fulfilled by CESC Mysore is as follows;

Non Solar RPO

Sl No Particulars FY 16-17 FY 15-16

1 Total Power Purchase Quantum in MU 7544.85 6444.86

2 Non Solar Renewable Energy Purchased under

PPA in MU 406.724 457.55

3 Non Solar renewable energy purchased under

Short term / Medium term in MU 72.388 266.18

4 Solar energy purchased in excess of RPO 1.677 -

5 Non Solar RPO Complied in % 6.37% 11.23%


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(Out of 11%) (Out of 10%)

Solar RPO


1 Total Power Purchase Quantum in MU 7544.85 6444.86

2 Solar Renewable Energy Purchased under PPA in

MU 56.831 25.26

3 Solar energy from SRTPV installations. 1.432 0.04

4 Solar RPO Complie d in % 0.772%

(out of 0.75%)

0.39%

(out of 0.25%)

5

Solar renewable energy purchased under PPA in

MU & SRTPV solar energy restricted to RPO

requirement

56.586 -

6 Solar energy purchased in excess of RPO

considered for Non-Solar RPO 1.677 -

Accidents for the year 2016-17

Sl.

No. Name of the Division

Departmental Non-Departmental Animal

Fatal Non-Fatal Fatal Non-Fatal

MYSORE O&M CIRCLE

1 N.R.Mohalla 0 3 4 0 2

2 V.V.Mohalla 0 1 0 0 1

3 Nanjangudu 0 1 4 0 3

4 Hunsur 1 1 5 2 9

Circle Total 1 6 13 2 15

CHAMRAJNAGARA & KODAGU CIRCLE

5 Chamarajanagar 0 1 4 0 4

6 Kollegala 0 0 4 0 2

7 Madikeri 0 2 8 4 11


HASSAN CIRCLE

8 Hassan 0 2 3 2 16

9 Sakleshpura 0 0 2 3 0

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Sl.

No. Name of the Division

Departmental Non-Departmental Animal

Fatal Non-Fatal Fatal Non-Fatal

10 C.R. Patana 0 0 0 0 0

11 Arsikere 0 0 1 1 2

12 Holenarasipura 0 3 2 1 6


MANDYA CIRCLE

13 Mandya 2 0 4 1 0

14 Maddur 0 1 5 1 4

15 Pandavapura 0 1 7 0 3

16 Nagamangala 0 0 1 0 0


GRAND TOTAL 3 16 54 15 63

CORPORATE GOVERNANCE

The Board of CESC believes and supports Corporate Governance practices of a high

standard, ensuring observance of these principles in all its dealings. All the Directors

take active part in the proceedings of Board and Sub-Committee meetings which add

value in the decision making process. The non functional directors receive sitting fees

for Board / Sub-committee meetings attended by them.

a) The meetings of the Board of Directors are scheduled in advance for which

notice is given to each Director in writing. The agenda and other relevant notes

are circulated to the Directors in advance.

Following are the Directors / KMP’s of CESC as on the date of AGM:

1. Sri. Dr. Rajaneesh Goel IAS Chairman

2. Sri. D. Kiran, IRS Managing Director

3. Sri. K.T. Mahanthappa Director Technical

4. Sri. S. Ziyaullah IAS Director

5. Sri. D. Randeep IAS Director

6. Sri. Pavankumar Malapati IAS Director

7. Sri. H. Nagesh Director

8. Sri. T.R. Ramakrishnaiah Director

9. Kum. Charulatha Somal IAS Director

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10. Sri. M. Pratap Director

11. Sri. A. N. Jayaraj Director

12. Sri. Arif khan Director

13. Sri. D. Siddaraju Director

14. Sri. D. Gopal Director

15. Sri. Huchegowda Director

16. Sri. Swamygowda Director

17. Smt. Latha Jayanna Director

18. Smt. B.K. Chandra kala Director

19. Sri. Madanamurali Director

20. Sri. C.K. Suresh Director

21. Sri. A. Shivanna Chief Financial Officer

22. Sri. K. T. Hiriyanna, FCS, Authorised signatory Convener

During 2016-17, 6 Board meetings took place as detailed below:

Sl.No Meeting No. Held on

1 57th 04.07.2016

2 58th 16.07.2016

3 59th 20.08.2016

4 60th 17.09.2016

5 61st 26.09.2016

6 62nd 17.01.2017

b) Board Sub Committees

The Sub-Committees of the Board were constituted to give more focused attention

on important issues.

1. Purchase Committee

Purchase Committee was formed to consider all cases of purchases whether

for Projects or award of Station / Line works or any other works and all matters

relating to such purchases as per prevailing delegation of financial powers.

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The composition of the purchase committee as on date of AGM is as below

1 Sri. D. Kiran, IRS, Managing Director Chairman

2 Sri. K.T. Mahanthappa, Director (Technical) Member

3 Sri. M. Pratap, Director Member Member

4 Sri. K. T. Hiriyanna, FCS, Authorised signatory Convener

During 2016-17, 6 Purchase Committee took place as detailed below:


1 77th 06.04.2016

2 78th 08.07.2016

3 79th 27.08.2016

4 80th 14.11.2016

5 81st 23.12.2016

6 82nd 04.03.2017

2. Audit Committee

The composition of the Audit committee as on date of AGM is as below

1 Sri. H. Nagesh Chairman

2 Sri. K.T. Mahanthappa Member

3 Sri. Pavankumar Malapati IAS Member

4 Sri. M. Pratap Member

5 Sri. K. T. Hiriyanna,FCS, Authorised signatory Convener

Audit Committee considers and recommends the financial results to the Board.

Statutory Auditors are invited to attend the meeting. The committee also invites the

Chief Financial Officer and Chief General Manager (I/A) to be present at the

meeting.

Audit Committee has adequate powers and terms of reference to play an effective

role as mentioned in Companies Act which includes:

1. Discussions with the Auditors periodically about Internal Control System and the

scope of audit including observations of the Auditors.

2. Review of the Annual Financial statements before submission to the Board.

3. Ensure compliance of internal control systems.

4. Investigation into any of the matters as may be referred to by the Board.

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5. Financial and Risk Management Policies and Fraud and Fraudulent Risks.

6. Review of annual capital, revenue and store budgets before being placed before

the Board for approval.

7. Review of programmes of finalization of annual accounts for timely completion

of audit and approvals.

8. Review of adequacy of internal controls to review reports on inventory,

completion reports of capital works, standards and specifications wherever

applicable.

9. Review of Internal Audit paras.

10. Review of AG Audit paras.

11. Review of disciplinary cases.

12. Review of Vigilance activities, MRT, TAQC Wings and write offs.

13. Review of power purchase costs.

14. Review of borrowings.

15. Discussions with Statutory Auditors and cost Auditors regarding their reports.

16. Any other matters as may be referred to by the Board.

During 2016-17, Audit Committee took place as detailed below:


1. 15th 08.07.2016

2. 16th 17.01.2017

3. CSR Committee:

Corporate Social Responsibility Committee has been formed in accordance with

section 135 of the Companies Act 2013 and the Companies (Corporate social

Responsibility) Rules, 2014 notified by the Ministry of Corporate Affairs, Government of

India.

The composition of the CSR committee as on date of AGM is as below

1 Sri. H. Nagesh Chairman

2 Sri. K.T Mahanthappa Member

4 Sri. M. Pratap Member

5 Sri. K. T. Hiriyanna, FCS, Authorised signatory Convener

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Personnel Details

A. The working strength of the employees as on 31.03.2017 is placed category-wise

as under:-

Cadres

Total working strength of employees

as on 31.03.2017

S W V

A-Grade (Regular Employees) 252 231 21

A-Grade (Deputation Employees) 16 11 5

A-Total 268 242 26

B-Grade (Regular Employees) 272 201 71

B-Grade (Deputation Employees) - - -

B-Total 272 201 71

C-Grade (Regular Employees) 3312 1997 1315

C-Grade (Deputation Employees) 41 34 7

C-Total 3353 2031 1322

D-Grade (Regular Employees) 6532 3018 3514

Company Total 10425 5492 4933

B. Training and Development Programmes during the year 2016-17

To inculcate the requisite work-culture and to develop the orientation and skill

essential for today’s advancing technology and operating environment, sufficient

and constant both external and internal training programmes are being imparted to

the rank and file employees of the Company.

a) Also training on Tax, Safety, Laws and customer relationship etc., have

been given to the employees for the enrichment of their knowledge and

betterment of their attitudes and behavior.

b) During the year 2016-17 the company has organized several Internal

Training Programmes and deputed the regular working staff of the Company

to various external training programme.

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The details of Training Programmes for FY 2016-17

Internal Training Programme

Sl No Cadre Nos ` in lakhs

1 Engineers 31

4.91 2 Accounts 2

3 C&D Employees 375

REC Training Programme for C & D employees (reimbursed by REC) 2553 25.91

Total Training expenditure 41.37

No. of participants 3090

Training Man hours 399.40

Training Man days 3615

Expenditure per participants per day (in `) 1338.00

C. National Training Programme for C&D Employees during FY 2016-17

REC-CESC have jointly sponsored 45 batches of training Programme under Variant

01 to 07 for the year 2016-17 to the C&D employees of CESC.

Communication Activities:

1. Instruction given to MCC for providing timer switches for street light and

requested to arrange for switching ON & OFF the street light at 6.30 PM to 5.30

AM of close to darkness & close to day light whichever is later. And to restrict the

excess usage of power to sign boards, hoardings, parks etc.

2. Action has been taken to give wide publicity for Govt. Schemes like regularization

of unauthorized pumpsets through newspapers, pamphlets, banners, broachers

etc.

3. Consumer Grievance Meetings, Janasamparka Sabhas have been conducted in

all the sub-divisions to solve the public grievances.

4. Soujanya Counters have been opened in all the sub-divisions to resolve the

problems of consumers.

5. Vidyut Adalath is being regularly conducted under the Chairmanship of Deputy

Commissioners.

6. Mass awareness programme is being conducted to pay the arrears regularly and

allow fixing the meter to Bhagyajyothi and Irrigation Pumpset categories on

electricity.

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7. Regular meetings with MPs & MLAs have been convened to solve public

grievances.

8. In the Company’s website energy consumption details are made available.

9. CESC has launched official website www.cescmysore.org on 15.08.2011 where

consumer can view all the information about the organization which provides

Tariff details, profile, statistics, ongoing projects tenders details, News & events,

all employees contact details along with following facility.

a. Consumer can register online complaint through feedback forms and

resolve the issues with respect to power supply interruption.

b. Can know the daily load availability and status of power supply &

consumption.

c. Other services like safety measures, consumption calculator.

10. CESC has provided ATP(Any time payment) facility to pay bill through ATP any

time in a day/ Any where payment facility through ATP has aslo been

introduced.

11. Customer chart showing details regarding payment details for availing power

supply under different tariff is available on website.

12. Applications for availing power supply under different category are available on

website.

13. CESC Customer care center launched under RAPDRP project where

consumers can call Contact Number 1912 to register their Electricity related

complaints. IVRS facility provided for consumers to know their complaint status

etc. Full fledged Staff & man power provided along 15 PC’, IP Phones & Server.

Etc to resolve the complaints within the stipulated time.

Particulars are as per Companies (particulars of employees) Rules, 1975 and as

amended:

None of the employees of the Company was in receipt of remuneration amounting to

` 60,00,000/- and above per annum or at the rate of ` 5,00,000/- and above per month

during the financial year under review.

Auditors:

The Comptroller & Auditor General of India had appointed M/s Ganesan & Co.,

Chartered Accountants, Bangalore as Statutory Auditors for the financial year 2016-17. The

audit team visited all accounting units, verified the records, obtained explanations and

finalized the audit work. Their report is enclosed and an addendum containing management

reply to their observation forms part of this report.


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M/s N.S and Associates, Cost Accountants, Bangalore are the Cost Auditors

appointed for conducting cost audit for the Financial year 2016-17.

M/s TSDJ & Associates are appointed for conducting secretarial audit for

FY16-17. Their report is also enclosed.

Review by the Comptroller & Auditor General

Comments on working results of the Corporation by the Comptroller and Auditor

General of India, forming part of this is appended to the annual report.

Directors’ Responsibility Statement:

Pursuant to Section 134(3)(c) of the Companies Act, 2013, the Directors wish to

state that to the best of their knowledge:

i) In the preparation of the annual accounts, the applicable accounting standards

had been followed along with proper explanation relating to material

departures;

ii) Accounting policies have been selected and applied consistently and made

judgements and estimates that are reasonable and prudent so as to give a

true and fair view of the state of affairs of the Corporation at the end of the

financial year and of the profit or loss of the Corporation for that period;

iii) 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 Corporation and for preventing and

detecting fraud and other irregularities; and

iv) Annual accounts have been prepared for the financial year ended March 31,

2017 on a going concern basis.

v) Internal controls have been laid down to be followed by the Corporation and

such internal controls are adequate and were operating effectively.

vi) Systems to ensure compliance with the provisions of all applicable laws are in

place and were adequate and operating effectively.

GENERAL

The Board would like to place on record its appreciation of:

The Government of Karnataka, the Government of India, Central Electricity

Authority, Comptroller &Auditor General of India, Karnataka Electricity Regulatory

Commission, Central Electricity Regulatory Commission for their assistance,

guidance and co-operation.

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Financing agencies such as Rural Electrification Corporation, Power Finance

Corporation, and Syndicate Bank, State Bank of Mysore, Canara Bank and other

Commercial Banks for their financial support.

The media for publicity and creating awareness among public.

The statutory/cost/secretarial auditors for their guidance and support.

All the agencies associated with the computerization of billing.

Employees’ Unions and Associations for their co-operation and collective

participation.

The Board also would like to place on record its appreciation of the dedicated

services rendered by the employees of the Corporation.

Sd/-

(Dr. Rajaneesh Goel)

Chairman

Date : 21.09.2017

Place: Mysuru

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INFORMATION PURSUANT TO THE COMPANIES (DISCLOSURE OF

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

FORM B

I) Research and Development (R&D)

Expenditure on R&D .. NIL

II) Energy conservation, technology absorption, adaptation and innovation

Not applicable.

In case of imported technology (imported during the last five years reckoned from the

beginning of the financial year), following information may be furnished:

Technology imported .. NIL

Year of import .. Does not arise

Has the technology been fully absorbed .. Does not arise

If not fully absorbed, areas where this has .. Does not arise

Not taken place, reasons therefore and

Future plan of action

III) Foreign Exchange:

a) Foreign exchange earnings ... Nil

b) Foreign exchange outgo ... Nil

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ADDENDUM TO DIRECTOR’S REPORT

Management replies to the observations / comments of

A) The statutory Auditors on the accounts

B) Secretarial Auditors on compliances of the applicable statutory provisions of

company for the year 2016-17 are as follows:

Sl.No Observations of Statutory Auditors Reply of the Management

a) Non-compliance of Accounting

Standard 2 on Inventories:

Inventories are valued at cost or Standard

rate. In respect of certain items of

inventories carried since the close of the

previous year, standard rate has been

adopted and in respect of receipts during

the year weighted average of the opening

standard rate and current year cost of such

inventories has been applied. The effect of

the above result in misstatement in the

valuation of inventories carried in the

balance sheet and the consequential effect

in the Statement of Profit and Loss account

is not ascertainable.

AS-2 has been implemented from

1st April, 2016 and onwards

i) Value of materials which

constitute the Opening Balance for

2016-17 (i.e., as on 1st April,

2016) will be retained at the value

existed in the books of Accounts

as at the end of 31/03/2016.

ii) According to modified Accounting

Policy, all Materials at the time of

purchase are to be valued at

Purchase cost instead of Standard

Rates prescribed in Schedule of

Rates Book.

iii) Material issues are to be valued at

Weighted Average Rate

applicable to the closing stock

before such issue.

Upto March-2016 inventories are

valued at standard rates and the

difference between the purchase

price and standard rates are booked

under Material cost variance account.

From 01.04.2016 no amount is

booked under material cost variance

A/c due to implementation of AS-2.

Hence consequential effect in the

Statement of Profit and Loss account

is not ascertainable.

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b) Non-compliance of Accounting Standard

10 on Property, Plant and Equipment

and Accounting Standard 16 Accounting

for Borrowing Costs:

(i) Substantial delays (spanning even more

than one accounting period) in

capitalization and non-capitalization of

assets put to use included in capital

work in progress have been observed.

These result in understatement of fixed

assets and depreciation charged.

Instruction have been issued to

accounting units that there should be

no delay in capitalization of assets

(i.e. Assets put to use).

(ii) Depreciation on any adjustments to the

historical cost of the fixed assets is not

charged prospectively over the residual

life of the asset and is charged

prospectively considering as though

such adjustments are new assets.

Company is following the same

procedure since inception.

(iii) In respect of assets retired from active

use and in respect of faulty / dismantled

assets which are capable of being

reconditioned and reusable in the near

future, the Company derecognises such

items from the fixed assets at their

carrying cost and classifies them as

other current assets under the head

‘written down value of Faulty /

Dismantled assets’ till such assets are

classified as held for disposal as scrap

or for reuse. In the absence of an

updated fixed assets register containing

details relating to cost, accumulated

depreciation and carrying amount of the

individual assets, it is observed that

there is no uniformity in determining the

carrying amount of an asset retired from

active use. When such assets are

reused, the reconditioned assets are

capitalized again at the carrying cost of

The facts will be submitted to expert

committee and after obtaining their

suggestions/comments; necessary

action will be taken accordingly.

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the original asset at which they were

transferred to other current assets

initially. Further, depreciation has not

been charged on such assets since

derecognition and until capitalized

again. This method is not in line with the

accounting standard AS 10 and results

in misstatement of carrying amount of

fixed assets and depreciation charge for

the capitalization of the asset for the

second and subsequent time,

considering the policy of charging

depreciation on SLM basis and

non-charging of appropriate

depreciation on ‘written down value of

Faulty / Dismantled assets’ .

(iv) Application of standard rates instead of

cost for the materials held in stock as

on 01.04.2016 and capitalized in project

assets.

Value of materials which constitute

the Opening Balance for 2016-17

(i.e., as on 1st April, 2016) will be

retained at the value existed in the

books of Accounts as at the end of

31/03/2016.

(v) Due to undue delay in capitalization of

project assets spanning over several

financial years for want of completion

certificates, the interest that had been

capitalized and held under capital work

in progress in earlier years towards

borrowing cost on qualifying assets for

the period beyond their actual date of

commissioning had not been charged to

revenue by reversing from Capital work

in progress resulting in misstatement of

carrying amount of fixed assets,

depreciation charge and finance costs.

Necessary action will be taken during

FY18.

(vi) The cumulative effect of the above on

depreciation charged and carrying

amount of fixed assets / current assets

Factual.

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and current liabilities in the financial

statements is presently not quantifiable.

c) Non-compliance of Accounting Standard

12 on Accounting for Government

grants:

In the absence of the date of capitalization

of respective individual assets for which

capital grants had been utilized, the

company has estimated and accounted

“Depreciation withdrawn from contribution /

subsidies as per AS-12” under

“miscellaneous receipts” in the statement of

Profit and Loss account over the useful life

of such assets without considering the

quantum of unutilized grants and hence we

are unable to comment on the

appropriateness of such amount

recognized and the balance of such

deferred grants under reserves and

surplus.

Factual.

d)

Non-compliance of Accounting Standard

15 on Retirement Benefits:

Non-provision for liability on leave

encashment benefits and family benefit

fund based on actuarial valuation. The

impact of the above on the financial


Factual.

e) Non-compliance of Accounting Standard

22 on Accounting for Taxes on Income:

Recognizing deferred tax liabilities on the

tax effect of timing difference of

depreciation alone and without considering

timing differences relating to accumulated

losses and other differences is not in

consonance with the accounting standards.

The impact of the above on the financial


Provision has been made only on the

timing difference of Depreciation, as

advised by Company’s Income Tax

consultant and it is brought out in

Note No. 5.2 of Annual Accounts.

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f) Non-compliance of Accounting Standard

28 on Impairment of Asset:

The Company has not assessed at the

Balance Sheet date the existence of

impairment, if any, of its assets, including

assets retired from active use and assets

scrapped and consequently we are unable

to comment on the existence of impairment

loss.

Factual

g)

The cumulative effect of the non-

compliance of the above and other

qualifications in the para below on the

Earnings per share vide Accounting

standard 20 is not quantifiable since

adequate information is not presently

available with the Company to quantify the

financial impact on non-compliance of

these Accounting Standards.

Factual

Further to the above,

a. The company had not accounted

interest payable on KPCL outstanding

amounting to `275.65 crores which was

hitherto accounted upto 31.03.2014 as

referred in Note No. 34.9.2 to the notes

to the accounts, which is not in

accordance with the generally accepted

accounting practice.

Factual.

b. Interest on power supply for IP

consumers (10 HP & below) have

remained unrecovered from the

Government and an amount of `371.97

crores is due as on 31.03.2017. The

Company had not charged interest

during the year. Recoverability of

outstanding interest charged and lying in

the IP sets consumers account under

receivables is doubtful of recovery.

The matter has already been brought

to the notice of Government of

Karnataka regarding the dues from IP

consumers outstanding as on

31.07.2008 which has remained

unrecovered. Until the final decision

of GOK regarding the clearance of the

said dues the same will be continued

under trade receivables.

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48


Accordingly the trade receivable is

overstated and the profit is overstated to

the effect of `371.97crores.

c. Accounting for accessories /

components items forming part of the

released transformers, i.e., oil and coil

items (based on schedule of rates) under

other current assets and correspondingly

crediting the miscellaneous receipts

account at the time of withdrawal from

the fixed assets instead of the carrying

amount of the released asset is not in

consonance with the generally accepted

accounting principles, resulting in

overstatement of current assets and

overstatement of profits.

The procedure is followed since

inception. During FY15-16 onwards

the procedure of buy-back system is

introduced the question of accounting

for accessories/components will not

arise.

d. Balances in trade receivables, trade

payables, sundry creditors, dues of

KPCL and other ESCOMs, deposit

accounts, loans and advances are

subject to confirmation / reconciliation.

The effect of adjustments to be

recognised on such reconciliation is

presently not ascertainable.

Schedule is being maintained at all

accounting units. Action has been

taken to clear the old balances by

reviewing each item at the accounting

unit.

e. Reconciliation of inter unit accounts

amounting to `236.51crores (credit)

shown under Other Current Liabilities is

under progress.The effect of

adjustments in the financial statements

on account of non-reconciliation of inter

unit account is presently not

ascertainable / quantifiable.

Under IUA A/c, in the opening

balance sheet of the company itself

`224.77 crores has been transferred

from MESCOM under IUA head. The

matter has been taken up with

MESCOM and GOK. This balance

has to be adjusted only by

restructuring the opening balance

sheet.

For remaining amount reconciliation is

under process.

f. Pending reconciliation of balance of

trade receivables as per general ledger

Reconciliation is under process.

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49


and subsidiary ledger and the delay of a

few days in the updation of collections in

the areas covered under Restructured

Accelerated Power Development &

Reforms Programme (RAPDRP), we are

not able to comment on the correctness

of the balances and their age-wise

classification.

g. Pending reconciliation of security

deposits from customers as per general

ledger and subsidiary ledger, we are not

able to comment on the correctness of

the interest recognised on such deposits.

Reconciliation is under process.

h. No provision for old receivables (relating

to shortage in inventories pending

investigation) that are doubtful of

recovery has been made resulting in

overstatement of other current assets

and overstatement of profits.

The procedure is followed since

inception, any how the matter will be

examined in FY 2017-18.

i. Non-ascertainment and non-provision of

wealth tax liability of the company upto

31.03.2015 resulting in overstatement of

profits.

Factual.

j. Non-disclosure of capital and other

commitments at the year end prescribed

under Schedule III to the Companies

Act, 2013.

Factual.

k. The recognition and measurement of

regulatory assets to the extent of

uncertainty in realisability of such assets

amounting to `982.44 crores which are

not in accordance with the generally

accepted accounting principles and

practices resulting in overstatement of

the assets and reserves and surplus by

`982.44 crores and profits for the year

by `517.99 crores.

The Company is engaged in

operation of Supply of Electricity to

the consumers covered under its

jurisdiction. The rates are regulated

by the Honb’le Karnataka Electricity

Regulatory Commission (KERC).

As per section 62 of Electricity Act

2003, the CESC is filing tariff

application yearly with Regulatory

Commission for determination of

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50


tariff. The Regulatory Commission

determines the tariff as per

procedures laid in section 64 of

Electricity Act 2003.The Company

collects tariff from consumers as

approved in the tariff order issued

by the Regulatory Commission. The

Honb’le KERC through its Tariff

orders allow recovery of deficits in

subsequent periods besides through

truing up orders. In this back

ground, the Company has

accounted the regulatory asset of

`517.99 Crs being recognition of

`638.40 Crs of additional regulatory

asset computed towards the

provisional gap expected to be

considered by KERC for recovery in

subsequent years and reversal of

`120.41 Crs created in FY16. Thus

the regulatory Assets as on


Non Current Asset - `982.44 crs

(Previous year : `344.05 crs)

Other Current Asset- ` Nil

(Previous year : `120.41 crs)

l. Through an order, The Government of

Karnataka had directed the accounting

of receivable towards subsidy and

payable towards power cost and interest

payable thereon transferred from KPTCL

with a net debit effect of `34.01 Cr

treated as “proposed adjustment to net

worth account” grouped under reserves

and surplus. Further, the amount of

`42.98 Cr accounted as interest payable

has been written back and grouped

under “Miscellaneous receipts” based on

The accounting treatment is given

as per the orders of GOK.

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51


the said order. The accounting treatment

communicated through a single order for

recognition of the net liability with a

corresponding effect in “proposed

adjustment to net worth account” and a

write back of a portion of such liability

separately is not in accordance with the

generally accepted accounting principles

and practices.

B. Observations of Secretarial Auditors Reply of the Management

1. The Company has not amended the Articles

of Association in line with the new Companies

Act, 2013; it is suggested to amend the same.

Noted.

2. The Company has not appointed a Company

Secretary, who is also regarded as KMP

under the Companies Act, 2013. However, it

was observed that company has made on

effort in securing the services of Practicing

Company Secretary on contract basis.

Factual. Continuous efforts are

being made to appoint a company

secretary but suitable candidate

has not applied.

Place: Mysuru Sd/-

Date:26.09.2017 (Dr. Rajaneesh Goel)

Chairman

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52

AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT

To the Members of Chamundeshwari Electricity Supply Corporation Limited

This report supersedes our original report dated 11.08.2017. Pursuant to the

observations made by Comptroller and Auditor General of India under section 143(6)(a) of

the Companies Act, 2013 the accounts approved by the Board of Directors on 11.08.2017

have been revised to incorporate the observations made by the Comptroller and Auditor

General of India on the financial statements and books of account of the company. The

impact of the revision in the accounts of the company is stated in note 36 to the accounts.

Our audit procedure on events subsequent to the date of the original report is restricted

solely to the amendments made vide note 36 to notes forming part of accounts.

Report on the Financial Statements

We have audited the accompanying financial statements of Chamundeshwari

Electricity Supply Corporation Limited (“the Company”), which comprise the Balance Sheet

as at March 31, 2017, and the Statement of Profit and Loss and Cash Flow Statement for

the year then ended, and a summary of significant accounting policies and other explanatory

information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in

section 134(5) of the Companies Act 2013 (“the Act”) with respect to the preparation of these

financial statements that give a true and fair view of the financial position, financial

performance and cash flows of the Company in accordance with the accounting principles

generally accepted in India, including the Accounting Standards specified under section 133

of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility

also includes maintenance of adequate accounting records in accordance with the

provisions of the Act for safeguarding the assets of the Company and for preventing and

detecting frauds and other irregularities; selection and application of appropriate accounting

policies; making judgments and estimates that are reasonable and prudent; and design,

implementation and maintenance of adequate internal financial controls that were operating

effectively for ensuring the accuracy and completeness of the accounting records, relevant

to the preparation and presentation of the financial statements that give a true and fair view

and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on

our audit. We have taken into account the provisions of the Act, the accounting and auditing

12th



53

standards and matters which are required to be included in the audit report under the

provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified

under section 143(10) of the Act. Those Standards require that we comply with ethical

requirements and plan and perform the audit to obtain reasonable assurance about whether

the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts

and disclosures in the financial statements. The procedures selected depend on the

auditor’s judgment, including the assessment of the risks of material misstatement of the

financial statements, whether due to fraud or error. In making those risk assessments, the

auditor considers internal control relevant to the Company’s preparation of the financial

statements that give a true and fair view in order to design audit procedures that are

appropriate in the circumstances,. An audit also includes evaluating the appropriateness of

accounting policies used and the reasonableness of the accounting estimates made by the

Company’s Directors, as well as evaluating the overall presentation of the financial

statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our qualified audit opinion on the financial statements.

Basis for Qualified Opinion

In our opinion, the Balance Sheet, the Statement of profit and Loss Account and the

Cash Flow Statement dealt with by this report comply with the Accounting Standards

specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,

2014 to the extent applicable subject to the following:

a) Non-compliance of Accounting Standard 2 on Inventories:

Inventories are valued at cost or Standard rate. In respect of certain items of

inventories carried since the close of the pervious year, standard rate has been

adopted and in respect of receipts during the year weighted average of the opening

standard rate and current year cost of such inventories has been applied. The effect

of the above result in misstatement in the valuation of inventories carried in the

balance sheet and the consequential effect in the Statement of Profit and Loss

account is not ascertainable.

b) Non-compliance of Accounting Standard 10 on Property, Plant and Equipment and

Accounting Standard 16 Accounting for Borrowing Costs:

(i) Substantial delays (spanning even more than one accounting period) in

capitalisation and non-capitalisation of assets put to use included in capital work

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54

in progress have been observed. These result in understatement of fixed assets

and depreciation charged.

(ii) Depreciation on any adjustments to the historical cost of the fixed assets is not

charged prospectively over the residual life of the asset and is charged

prospectively considering as though such adjustments are new assets.

(iii) In respect of assets retired from active use and in respect of faulty / dismantled

assets which are capable of being reconditioned and reusable in the near future,

the Company derecognises such items from the fixed assets at their carrying

cost and classifies them as other current assets under the head ‘written down

value of Faulty / Dismantled assets’ till such assets are classified as held for

disposal as scrap or for reuse. In the absence of an updated fixed assets register

containing details relating to cost, accumulated depreciation and carrying amount

of the individual assets, it is observed that there is no uniformity in determining

the carrying amount of an asset retired from active use. When such assets are

reused, the reconditioned assets are capitalized again at the carrying cost of the

original asset at which they were transferred to other current assets initially.

Further, depreciation has not been charged on such assets since derecognition

and until capitalized again. This method is not in line with the accounting

standard AS 10 and results in misstatement of carrying amount of fixed assets

and depreciation charge for the capitalization of the asset for the second and

subsequent time, considering the policy of charging depreciation on SLM basis

and non-charging of appropriate depreciation on ‘written down value of Faulty /

Dismantled assets’ .

(iv) Application of standard rates instead of cost for the materials held in stock as on

01.04.2016 and capitalized in project assets.

(v) Due to undue delay in capitalization of project assets spanning over several

financial years for want of completion certificates, the interest that had been

capitalized and held under capital work in progress in earlier years towards

borrowing cost on qualifying assets for the period beyond their actual date of

commissioning had not been charged to revenue by reversing from Capital work

in progress resulting in misstatement of carrying amount of fixed assets,

depreciation charge and finance costs.

(vi) The cumulative effect of the above on depreciation charged and carrying amount

of fixed assets / current assets and current liabilities in the financial statements is

presently not quantifiable.

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55

c) Non-compliance of Accounting Standard 12 on Accounting for Government grants:

In the absence of the date of capitalization of respective individual assets for which

capital grants had been utilized, the company has estimated and accounted

“Depreciation withdrawn from contribution / subsidies as per AS -12” under

“miscellaneous receipts” in the statement of Profit and Loss account over the useful

life of such assets without considering the quantum of unutilized grants and hence

we are unable to comment on the appropriateness of such amount recognized and

the balance of such deferred grants under reserves and surplus.

d) Non-compliance of Accounting Standard 15 on Retirement Benefits:

Non-provision for liability on leave encashment benefits and family benefit fund based

on actuarial valuation. The impact of the above on the financial statements is

presently not quantifiable.

e) Non-compliance of Accounting Standard 22 on Accounting for Taxes on Income:

Recognizing deferred tax liabilities on the tax effect of timing difference of

depreciation alone and without considering timing differences relating to accumulated

losses and other differences is not in consonance with the accounting standards. The

impact of the above on the financial statements is presently not quantifiable.

f) Non-compliance of Accounting Standard 28 on Impairment of Asset:

The Company has not assessed at the Balance Sheet date the existence of

impairment, if any, of its assets, including assets retired from active use and assets

scrapped and consequently we are unable to comment on the existence of

impairment loss.

g) The cumulative effect of the non-compliance of the above and other qualifications in

the para below on the Earnings per share vide Accounting standard 20 is not

quantifiable since adequate information is not presently available with the Company

to quantify the financial impact on non-compliance of these Accounting Standards.

Further to the above,

a. The company had not accounted interest payable on KPCL outstanding amounting to

`275.65 crores which was hitherto accounted upto 31.03.2014 as referred in Note No.

34.9.2 to the notes to the accounts, which is not in accordance with the generally

accepted accounting practice.

b. Interest on power supply for IP consumers (10 HP & below) have remained

unrecovered from the Government and an amount of `371.97crores is due as on

31.03.2017. The Company had not charged interest during the year. Recoverability

of outstanding interest charged and lying in the IP sets consumers account under

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56

receivables is doubtful of recovery. Accordingly the trade receivable is overstated

and the profit is overstated to the effect of `371.97crores.

c. Accounting for accessories / components items forming part of the released

transformers, i.e., oil and coil items (based on schedule of rates) under other current

assets and correspondingly crediting the miscellaneous receipts account at the time

of withdrawal from the fixed assets instead of the carrying amount of the released

asset is not in consonance with the generally accepted accounting principles,

resulting in overstatement of current assets and overstatement of profits.

d. Balances in trade receivables, trade payables, sundry creditors, dues of KPCL and

other ESCOMs, deposit accounts, loans and advances are subject to confirmation /

reconciliation. The effect of adjustments to be recognised on such reconciliation is

presently not ascertainable.

e. Reconciliation of inter unit accounts amounting to ` 236.51 crores (credit) shown

under Other current Liabilities is under progress. The effect of adjustments in the

financial statements on account of non-reconciliation of inter unit account is presently

not ascertainable / quantifiable.

f. Pending reconciliation of balance of trade receivables as per general ledger and

subsidiary ledger and the delay of a few days in the updation of collections in the

areas covered under Restructured Accelerated Power Development & Reforms

Programme (RAPDRP), we are not able to comment on the correctness of the

balances and their age-wise classification.

g. Pending reconciliation of security deposits from customers as per general ledger and

subsidiary ledger, we are not able to comment on the correctness of the interest

recognised on such deposits.

h. No provision for old receivables (relating to shortage in inventories pending

investigation) that are doubtful of recovery has been made resulting in overstatement

of other current assets and overstatement of profits.

i. Non-ascertainment and non-provision of wealth tax liability of the company upto

31.03.2015 resulting in overstatement of profits.

j. Non-disclosure of capital and other commitments at the year end prescribed under

Schedule III to the Companies Act, 2013.

k. The recognition and measurement of regulatory assets to the extent of uncertainty in

realisability of such assets amounting to ` 982.44 crores which are not in accordance

with the generally accepted accounting principles and practices resulting in

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overstatement of the assets and reserves and surplus by `982.44 crores and profits

for the year by `517.99 crores.

l. Through an order, The Government of Karnataka had directed the accounting of

receivable towards subsidy and payable towards power cost and interest payable

thereon transferred from KPTCL with a net debit effect of ` 34.01 Cr treated as

“proposed adjustment to net worth account” grouped under reserves and surplus.

Further, the amount of ` 42.98 Cr accounted as interest payable has been written

back and grouped under “Miscellaneous receipts” based on the said order. The

accounting treatment communicated through a single order for recognition of the net

liability with a corresponding effect in “proposed adjustment to net worth account”

and a write back of a portion of such liability separately is not in accordance with the

generally accepted accounting principles and practices.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations

given to us except for the effects of the matters described in the Basis for Qualified Opinion

paragraph, the financial statements give the information required by the Act in the manner so

required and give a true and fair view in conformity with the accounting principles generally

accepted in India of the state of affairs of the Company as at 31st March, 2017, and its profits

and its cash flows for the year ended on that date.

Emphasis of matter

We draw attention to the following matters explained in the Notes to the financial

statements:

Title deeds of certain immovable properties are not in the name of the company –

Refer Note No.13.3.5 of Notes to accounts.

Our opinion is not qualified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies Auditor’s Report Order, 2016 (“the Order”) issued by

the Central Government of India in terms of sub-section 11 of Section 143 of the Act,

we given in Annexure-A a statement on the matters specified in paragraphs 3 and 4

of the Order.

2. As required by section 143 (3) of the Act, we report that:

a. We have sought and, except for the possible effects of the matter described in the

Basis for Qualified Opinion paragraph above, obtained all the information and

explanations which to the best of our knowledge and belief were necessary for the

purpose of our audit;

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b. Except for the possible effects of the matter described in the Basis for Qualified

Opinion paragraph above, in our opinion proper books of account as required by law

have been kept by the Company;

c. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt

with by this Report are in agreement with the books of account;

d. Except for the matters described in the Basis for Qualified Opinion paragraph above,

the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply

with the Accounting Standards specified under section 133 of the Act, read with

Rule 7 of the Companies (Accounts) Rules, 2013;

e. In terms of notification issued in G.S.R. 463(E) dated 05.06.2015 under clauses (a)

and (b) of sub-section (1) of Section 462 and in pursuance of sub-section (2) of the

said Section of the Companies Act, 2013 (18 of 2013), the provisions of sub-section

(2) of section 164 of the Act, do not apply to a Government company and accordingly

the question of reporting on the disqualification of appointment of Directors does not

arise;

f. The qualification relating to the maintenance of accounts and other matters

connected therewith are as stated in the Basis for Qualified Opinion paragraph

above;

g. With respect to the adequacy of the internal financial controls over financial reporting

of the Company and the operating effectiveness of such controls, refer to our

separate report in “Annexure B”;

h. With respect to the other matters to be included in the Auditor’s Report in accordance

with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and

to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial

position in its financial statements – Refer Note No.34.9 to the Notes on Accounts;

ii. The Company did not have any long term contracts including derivative contracts

for which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred, to the Investor

Education and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the financial statements as to

holdings as well as dealings in Specified Bank Notes during the period from 8th

November, 2016 to 30th December, 2016. However, we are unable to obtain

sufficient and appropriate audit evidence to report on whether the disclosures are

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in accordance with books of account maintained by the Company and as

produced to us by the Management – Refer Note 34.9.7

3. In compliance to the directions under section 143(5), we report as hereunder:

A. Matters relating to directions:

1. According to the information and explanations provided to us, the company has not

been selected for disinvestment.

2. During the year, there is waiver/write off of debts being arrears relating to long

disconnected installations amounting to ` 1.12 crores in the absence of any scope for

recovery, as explained to us.

3. Proper records are maintained for inventories lying with third parties by the company.

According to the information and explanations given to us, the company has not

received any assets as gift/grant from Government or other authorities cases.

4. The age-wise details of pending legal cases is as hereunder:

Particulars Upto 1 Year 1 Year to 3 Years More than 3 years Total

Revenue 18 4 17 39

Others 50 106 79 235

As explained to us, the proceedings of the above cases are under progress at the

courts and there are no specific reasons attributable to such pendency and there

exists a reasonable mechanism for ensuring effectiveness of expenditure

incurred in respect of legal cases.

5. Additional Company Specific Direction:

i. Considering the size of the company and the volume of operations of the company,

the system of billing and collection of revenue is considered to be reasonably

efficient. Delay of a few days in the updation of collections in the areas cover under

Restructured Accelerated Power Development & Reforms Programme (RAPDRP) is

noticed. Tamper proof meters have not been installed for all consumers. As informed

to us, for all HT lines in RAPDRP area, Automated Meter Reading (AMR) systems

have been installed and in other areas, the installation of such meters is in progress

and in respect of LT lines, AMRs have not been installed. The accuracy of the billing

is ensured through periodic test check undertaken by HT and LT rating staff.

ii. Reconciliation of receivables / payables is being generally done periodically with

generation companies having power purchase agreements with the company,

distribution companies and transmission companies. The reconciliation with other

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generators has not been undertaken. The year end balances are subject to

reconciliation.

iii. The Fuel and Power Purchase Adjustment Cost (FPPCA) approved by KERC has

been demanded and recovered from the consumers and accounted by the company.

iv. During the year ended 31st March 2017 no tariff roll back subsidies have been

allowed, as informed to us.

v. Only operations relating to billing and collection from consumers have been

computerized. Adequate practices are in place for ensuring data security, as

explained to us but the company does not have any formal documented IT security

policy for data / software / hardware.

FOR GANESAN AND COMPANY

CHARTERED ACCOUNTANTS

FIRM REGN NO. 000859S

Sd/-

G.HARI GOVIND

PARTNER.

M.NO.206563

Place : Mysuru

Date : 21.09.2017

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Annexure-A to Independent Auditor’s Report

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’

section of our report of even date to the members of Chamundeshwari Electricity Supply

Corporation Limited for the year ended March 31, 2017)

1) (a) The records maintained by the company with respect to fixed assets do not have the

details with respect to quantity and situation of fixed assets. The company has

informed us that it is in the process of updating its records with respect to the

original cost of all assets and depreciation up to date.

(b) According to the information and explanations given to us, the management has

physically verified certain fixed assets during the year under a programme for

periodic verification of fixed assets which is found to be reasonable. As explained to

us, no material discrepancy between physical count and fixed assets’ records was

noticed and the same has been properly dealt with in the accounts.

(c) Title deeds of immovable properties are in the name of the company except in the

following cases:

Sl.

No.

Name of Division

where accounted Details of Immovable property Asset in the name of

1 NR Mohalla

Kadakola LM Camp KEB

2 Ayyarahally LM Camp KEB

3

Nanjanagudu

Hullahally LM Camp KEB

4 Muguru LM Camp No title deeds available

5 Bettahally LM Camp KEB

6

Hunsur

Hunsur Sub-division KEB

7 Kattemalalavadi KEB

8 Periyapatna Sub-division KEB

9 K.R.Nagar Collection Center KEB

10 Basavarajapura Camp No documents available

11 Saraguru Section office KEB

12 Saraguru quarters colony KEB

13

Chamarajanagara

Harave MUSS KEB

14 Chandakavadi Section office

33Kv MUSS KEB

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Sl.

No.

Name of Division

where accounted Details of Immovable property Asset in the name of

15 Kollegala

Male mahadeshwara Hills LM

Camp KEB

16 Kinakanahally LM Camp No title deeds available

17

Madikeri

Shanthinikethan KEB

18 MUSS Colony, Madikeri MUSS

19 Madikeri Sub-division office Chairman, Indian

Corporation & Indian Union

20 Somawarpete Section office Govt property

21 Hanagalu Shettally KEB

22 Koodige Govt.

23 Shrimangala Section office KEB

24 Virajapete Section office MUSS

25 Mandya

Tubinakere LM Camp KEB

26 Hulikere LM Camp In the name of Govt. school

27 Maddur

Ravani LM Camp KEB

28 Kiragavalu Section office KEB

29 Pandavapura

Hangarahally LM Camp KPTCL

30 Bidarahally LM Camp KEB

31 Hassan

Old Electricity Colony(OEC) KEB

32 Dudda Section office KPTCL

33 Holenarasipura

Hally Mysore KEB

34 Bachenahally Land is not available

2) We are informed that the physical verification of inventories has been carried out once

in a year by the management. In the absence of adequate records of physical

verification of inventories, we are unable to comment, whether the procedures of

physical verification of inventories followed by the management are reasonable and

adequate in relation to the size of the company and the nature of its business.

The discrepancies arising out of physical verification are yet to be adjusted in the

inventory.

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3) The company has not granted any loans, secured or unsecured to companies, firms,

Limited Liability Partnerships or other parties covered in the register maintained under

section 189 of the Companies Act, 2013 and accordingly, reporting in clauses (iii)(a),

(iii)(b) and (iii)(c) of paragraph 3 of the Order is not applicable to the Company.

4) According to the information and explanations given to us, the company has not given

any loans, guarantees or security or made any investments during the year attracting

the provisions of Sec. 185 or Sec. 186 of the Companies Act, 2013 and accordingly,

reporting in clauses (iv) of paragraph 3 of the Order is not applicable to the Company.

5) According to the information and explanation provided to us, the company has not

accepted deposits from the public except in respect of share application money from

Government of Karnataka pending allotment for a period beyond 60 days which are

covered under the directives issued by the Reserve Bank of India and the provisions of

Section 73 to 76 or any other relevant provisions of the Act and the rules framed there

under and accordingly, the company has complied with the said provisions expect in

respect of shares application money pending allotment tantamounting to deposits.

6) We have broadly reviewed the books of accounts made and maintained by the

company pursuant to the rules made by the Central Government for the maintenance of

Cost records under section 148(1) of the Act, and are of the opinion that prima facie, the

prescribed accounts and records have been made and maintained. We have, however,

not made a detailed examination of the records with a view to determining whether they

are accurate or complete.

7) (a) The company has been generally regular in depositing with appropriate authorities

undisputed statutory dues including provident fund, investor education protection fund,

employees’ state insurance, income tax, sales tax, service tax, duty of customs, duty of

excise, value added tax, cess and other material statutory dues applicable to it with the

appropriate authorities during the year. There were no undisputed amounts payable in

respect of the aforesaid statutory dues outstanding as of 31st March 2017 for a period of

more than six months from the date they became payable.

(b) According to the records of the company, there are no dues of income tax / sales

tax/ duty of customs / duty of excise / value added tax which have not been deposited

on account of any dispute except in respect of service tax dues as under:

12th



64

Sl.

No.

Name of the

statute

Forum where the dispute is

pending

Amount (In

` Lakhs)

Period to which

it relates

1. The Finance Act,

1994 (Service Tax)

Customs, Excise and Service Tax

Appellate Tribunal, Bengaluru 45.29

January 2005 –

March 2009

2. The Finance Act,

1994 (Service Tax)



April 2009 –

September 2009

3. The Finance Act,

1994 (Service Tax)



October 2009 –

March 2010

4. The Finance Act,

1994 (Service Tax)



October 2010 –

March 2011

5. The Finance Act,

1994 (Service Tax)



April 2011 –

September 2011

6. The Finance Act,

1994 (Service Tax)



October 2011 –

March 2012

7. The Finance Act,

1994 (Service Tax)

The Commissioner of Central

Excise (Appeals) 4.14

April 2012 –

June 2012

8. The Finance Act,

1994 (Service Tax)

The Commissioner of Central

Excise (Appeals) 8.75

July 2012 –

March 2013

8) In our opinion and according to the explanations given to us, the company has not

defaulted in repayment of loans or borrowings to a financial institution, bank or

government and the company did not have any dues to debenture-holders during the

year.

9) According to the information and explanations given to us, the term loans obtained by

the company have been applied for the purpose for which they were raised and the

company had not raised moneys by way of initial public offer or further public offer

(including debt instruments) during the year.

10) According to the information and explanations given to us, no fraud on or by the

company has been noticed or reported during the course of our audit except in respect

of: (a)Theft of electricity reported by the vigilance department for 715 cases involving

an amount of ` 111.64 lakhs. Out of this ` 96.57 lakhs have been collected upto

31.03.2017 and (b) Misappropriation of cash amounting to ` 4.46 lacs by an employee

during the year detected and recovered subsequent to 31.03.2017.

12th



65

11) The company, being a government company, provisions of section 197 relating to

managerial remuneration are not applicable to the company and hence clause (xi) of

paragraph 3 of the Order is not applicable to the Company.

12) According to the information and explanations given to us, the company is not a Nidhi

company and hence clause (xii) of paragraph 3 of the Order is not applicable to the

Company.

13) According to the information and explanations given to us, the company has not

entered into any transactions with related parties and hence reporting under clause

(xiii) of paragraph 3 of the Order is not applicable to the Company.

14) According to the information and explanations given to us, the further issue of shares

are neither private placement nor preferential allotment by the company and the

company has not allotted issued any debentures and hence reporting under clause

(xiv) of paragraph 3 of the Order is not applicable to the Company.

15) According to the information and explanations given to us, the company has not

entered into any non-cash transactions with directors or persons connected with and

hence reporting under clause (xv) of paragraph 3 of the Order is not applicable to the

Company.

16) According to the information and explanations given to us, the company is not required

to be registered under section 45-IA of the Reserve Bank of India Act, 1934.




Sd/-

G. HARI GOVIND

PARTNER.

M.NO.206563

Place : Mysuru

Date : 21.09.2017

12th



66

ANNEXURE-B TO INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 2 (g) under ‘Report on Other Legal and Regulatory

Requirements’ section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under

Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’)

We have audited the internal financial controls over financial reporting of

Chamundeshwari Electricity Supply Corporation Limited (‘the Company’) as at

March 31, 2017 in conjunction with our audit of the financial statements of the Company for

the year ended and as on that date.

Management’s Responsibility for Internal Financial Controls

The Board of Directors of the Company are responsible for establishing and

maintaining internal financial controls based on the internal control over financial reporting

criteria established by the Company considering the essential components of internal control

stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting

issued by the Institute of Chartered Accountants of India. These responsibilities include the

design, implementation and maintenance of adequate internal financial controls that were

operating effectively for ensuring the orderly and efficient conduct of its business, including

adherence to the respective company’s policies, the safeguarding of its assets, the

prevention and detection of frauds and errors, the accuracy and completeness of the

accounting records, and the timely preparation of reliable financial information, as required

under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financial

controls over financial reporting based on our audit. We conducted our audit in accordance

with the Standards on Auditing prescribed under Section 143(10) of the Act and the

Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the

“Guidance Note”), to the extent applicable to an audit of internal financial controls over

financial reporting. Those Standards and the Guidance Note require that we comply with the

ethical requirements and plan and perform the audit to obtain reasonable assurance about

whether adequate internal financial controls over financial reporting was established and

maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the

adequacy of the internal financial controls system over financial reporting and their operating

effectiveness. Our audit of internal financial controls over financial reporting includes

obtaining an understanding of internal financial controls over financial reporting, assessing

12th



67

the risk that a material weakness exists, and testing and evaluating the design and operating

effectiveness of internal control based on the assessed risk. The procedures selected

depend on the auditors’ judgment, including the assessment of the risks of material

misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our audit opinion on the Company’s internal financial controls system

over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed

to provide reasonable assurance regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in accordance with generally

accepted accounting principles. A company’s internal financial control over financial

reporting includes those policies and procedures that

(1) Pertain to the maintenance of records that, in reasonable detail, accurately and

fairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to

permit preparation of financial statements in accordance with generally accepted

accounting principles, and that receipts and expenditures of the company are

being made only in accordance with authorisations of management and directors

of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection of

unauthorised acquisition, use, or disposition of the company’s assets that could

have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial

reporting, including the possibility of collusion or improper management override of controls,

material misstatements due to error or fraud may occur and not be detected. Also,

projections of any evaluation of the internal financial controls over financial reporting to

future periods are subject to the risk that the internal financial control over financial reporting

may become inadequate because of changes in conditions, or that the degree of compliance

with the policies or procedures may deteriorate.

Qualified Opinion

According to the information and explanations given to us and based on our audit,

the following deficiencies in design / design and operation of controls resulting in significant

deficiencies and material weaknesses have been identified as at March 31, 2017:

12th



68

Inadequate design of internal control over the preparation of the financial statements

being audited and failure of the information and communication component of

internal control to provide complete and accurate output because of deficiencies in

timeliness, completeness, or accuracy, for timely identification and accounting of

liabilities and assets (including capitalisation for want of completion reports in

respect of completed works) resulting in prior period adjustments in the financial

statements.

Deficient implementation of internal controls as employees who lack training to fulfil

their assigned functions are noticed and some employees responsible for the

accounting and reporting function lack the skills and knowledge to apply generally

accepted accounting principles in recording the entity’s financial transactions.

Inadequate design / design and implementation of controls resulting in misstatement

unidentified by entity’s internal controls and involving estimations and judgements

resulting in material corrections / rectifications in the financial statements based on

audit.

Inadequate documentation of the components of internal control and inadequate

design of monitoring controls used to assess the design and operating effectiveness

of the entity’s internal control over time as no documentary evidences have been

furnished to us for any testing conducted by the management during the year of the

implemented internal financial controls to ensure their operational effectiveness

The absence of an internal process to report deficiencies in internal control to

management on a timely basis as significant delay in completion of internal audit

and reporting by the internal audit department at some divisions were noticed.

Non-updation of the accounts manual adopted / followed and laying down

comprehensive procedures for accounting (including identification of non-routine

and non-systematic transactions) and that are to be complied at the units and

divisions resulting in non-adherence of uniform accounting across the divisions /

units of the company.

Inadequate design / design and implementation of controls and procedures to

ensure adherence to appropriate selection of policy and their implementation to

comply with the mandatory accounting standards / generally accepted accounting

principles having a material impact on the financial statements and indicating a likely

ineffective oversight of entity’s financial reporting and internal control by those

charged with governance:

o Accounting Standard 2 on valuation of Inventories due to application / adoption

of standard rates in valuing certain inventory.

12th



69

o Accounting Standard 10 on Property, Plant and Equipment and Accounting

Standard 16 Accounting for Borrowing Costs having an effect on depreciation

charged and carrying amount of fixed assets in the financial statements due to:

Substantial delays (spanning even more than one accounting period) in

capitalisation and non-capitalisation of assets put to use included in capital work in

progress have been observed.

Depreciation on any adjustments to the historical cost of the fixed assets is not

charged prospectively over the residual life of the asset and is charged prospectively

considering as though such adjustments are new assets.

Derecognition of certain assets meant for reuse which temporarily dismantled and

non-charging of depreciation during the period between derecognition and

capitalization of re-conditioned assets. Capitalisation of reconditioned assets at the

carrying cost of the original asset (at which such assets were transferred to current

asset) when retired from active use initially.

Application of standard rates in respect of materials capitalized in project assets.

o Non-compliance of Accounting Standard 12 on Accounting for Government

grants due to inapproprate estimation and accounting of “Depreication

withdrawn from contribution/subsidy as per AS 12”.

o Non-compliance of Accounting Standard 15 on Retirement Benefits due to:

Non-provision for liability on leave encashment benefits and family benefit fund

based on actuarial valuation.

o Non-compliance of Accounting Standard 22 on Accounting for Taxes on Income

due to:

Recognition deferred tax liabilities on the tax effect of timing difference of

depreciation alone and without considering timing differences relating to

accumulated losses and other differences.

o Non-compliance of Accounting Standard 28 on Impairment of Asset due to:

Non-assessment at the Balance Sheet date of the existence of any impairment of its

assets (especially assets retired from active use / scrapped).

o Absence of a mechanism to ascertain the individual / cumulative effect of

non-compliance with accounting standards / generally accepted accounting

principles on the state of affairs and results of the company.

Inadequate design of internal control over a significant account or process due to

the following:

12th



70

o Accounting for accessories / components items forming part of the released

transformers, i.e., oil and coil items (based on schedule of rates) under other

current assets and correspondingly crediting the miscellaneous receipts account

at the time of withdrawal from the fixed assets instead of the carrying amount of

the released asset.

o Delay in reconciliation of significant and material account balances (say within a

quarter) for appropriate accounting of any adjustments that may be required.

o Recognition and measurement of regulatory assets to the extent of uncertainty

in realisability of such assets.

A ‘material weakness’ is a deficiency, or a combination of deficiencies, in internal

financial control over financial reporting, such that there is a reasonable possibility that a

material misstatement of the company's annual or interim financial statements will not be

prevented or detected on a timely basis.

In our opinion, except for the effects / possible effects of the material weaknesses

described above on the achievement of the objectives of the control criteria, the Company

has, in all material respects, maintained adequate internal financial controls over financial

reporting as of March 31, 2017, based on “the internal control over financial reporting criteria

established by the Company considering the essential components of internal control stated

in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued

by the Institute of Chartered Accountants of India”, and the Company’s internal financial

controls over financial reporting were operating effectively as of March 31, 2017.

We have considered the material weaknesses identified and reported above in

determining the nature, timing, and extent of audit tests applied in our audit of the March 31,

2017 financial statements of the Company, and these material weaknesses do not affect our

opinion on the standalone financial statements of the Company.




Sd/-

G.HARI GOVIND

PARTNER.

M.NO.206563

Place : Mysuru

Date : 21.09.2017

12th



71

Form No. MR-3

[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies

(Appointment and Remuneration Personnel) Rules, 2014]

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 2016-17

To

The Members,

M/s. Chamundeshwari Electricity Supply Corporation Limited

No. 29, Vijayanagara 2nd stage,

Hinakal, Mysuru 570017

We have conducted the Secretarial Audit of the compliance of applicable statutory

provisions and the adherence to good corporate practices by M/s. Chamundeshwari

Electricity Supply Corporation Limited, (Hereinafter called the company). Secretarial

Audit was conducted in a manner that provided us a reasonable basis for evaluating the

corporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the Company’s books, papers, minute books, forms and

returns filed and other records maintained by the Company and also the information

provided by the Company, its officers, agents and authorized representatives during the

conduct of secretarial audit, we hereby report that in our opinion, the company has, during

the audit period covering the financial year ended on 31st March 2017 complied with the

statutory provisions listed hereunder and also that the Company has proper Board-

processes and compliance-mechanism in place to the extent, in the manner and subject to

the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and

other records maintained by M/s. Chamundeshwari Electricity Supply Corporation

Limited (“the Company”) for the financial year ended on 31st March 2017 according to the

provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made there under;

(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made

there under;

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed there

under;

12th



72

(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made

there under to the extent of Foreign Direct Investment, Overseas Direct

Investment and External Commercial Borrowings;

(v) The following Regulations and Guidelines prescribed under the Securities and

Exchange Board of India Act, 1992 (‘SEBI Act’):-

(a) The Securities and Exchange Board of India (Substantial Acquisition of

Shares and Takeovers) Regulations, 2011;

(b) The Securities and Exchange Board of India (Prohibition of Insider Trading)

Regulations, 1992;

(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure

Requirements) Regulations, 2009;

(d) The Securities and Exchange Board of India (Employee Stock Option

Scheme and Employee Stock Purchase Scheme) Guidelines, 1999;

(e) The Securities and Exchange Board of India (Issue and Listing of Debt

Securities) Regulations, 2008;

(f) The Securities and Exchange Board of India (Registrars to an Issue and

Share Transfer Agents) Regulations, 1993 regarding the Companies Act and

dealing with client;

(g) The Securities and Exchange Board of India (Delisting of Equity Shares)

Regulations, 2009; and

(h) The Securities and Exchange Board of India (Buyback of Securities)

Regulations, 1998;

We have also examined compliance with the applicable clauses of the following:

(I) Secretarial Standards with respect to Meetings of Board of Directors (SS-1)

and General Meetings (SS-2) issued by The Institute of Company

Secretaries of India (effective from 1st July, 2015)

Our scope of Audit is restricted to compliances under the Companies Act, 2013 and

rules made there under and other Acts, as specified above, which are applicable to the

company.

The provisions of Clause (ii), (iii). (iv) and Clause (V) are not applicable for this

company.

12th



73

Company Law:

Matter for Emphasis:

1. The Company has not amended the Articles of Association in line with the new

Companies Act, 2013; it is suggested to amend the same.

2. The Company has not appointed a Company Secretary, who is also regarded as

KMP under the Companies Act, 2013. However, it was observed that company

has made an effort in securing the services of Practicing Company Secretary on

contract basis.

Labour Law:

1. All the premises and establishment have been registered with the appropriate

authorities.

2. The company has not employed any child labour/Bonded labour in any of its

establishments.

3. The company is ensuring the compliance of PF to the employees.

VAT Act

1. The Company has complied with procedures of VAT Act; the payment has been

made accordingly within stipulated time.

We further report that:

The Board of Directors of the Company is duly constituted being nominees of the

Government, The Company has independent Directors. The changes in the composition of

the Board of Directors that took place during the period under review were carried out in

Compliance with the provisions of the Act.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and

detailed notes on agenda were sent at least seven days in advance, and a system exists for

seeking and obtaining further information and clarifications on the agenda items before the

meeting and for meaningful participation at the meeting.

We further report that there are adequate systems and processes in the company

commensurate with the size and operations of the company to monitor and ensure

compliance with applicable laws, rules, regulations and guidelines.

We further report that during the audit period the Company has-

1. Not issued Public/Right/Preferential issue of shares / debentures/sweat equity,

etc.

2. No Redemption / buy-back of securities

12th



74

3. No Major decisions taken by the members in pursuance to section 180 of the

Companies Act, 2013

4. No Merger / amalgamation / reconstruction, etc.

5. No Foreign technical collaborations.

TSDJ & Associates

Company Secretaries

Sd/-

Sheela Arvind Partner

Membership No: 32648 CP No: ACS 11992

FRN No.P2015KR043500

Place: Bengaluru

Date: 20/09/2017

This report is to be read with our letter of even date which is annexed as Annexure A and

forms an integral part of this report.

12th



75

“Annexure A”

To

The Members,

M/s. Chamundeshwari Electricity Supply Corporation Limited

No. 29, Vijayanagara 2nd stage,

Hinakal, Mysuru 570017

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the

company. Our responsibility is to express an opinion on these secretarial records based

on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain

reasonable assurance about the correctness of the contents of the Secretarial records.

The verification was done on test basis to ensure the correct facts are reflected in

secretarial records. We believe that the process and practices, we followed provide a

reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and books

of accounts of the Company.

4. Whenever required, we have obtained the Management representation about the

compliance of laws, rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules,

regulations, standards is the responsibility of the management. Our examination was

limited to the verification of procedures on test basis.

6. The Secretarial Audit report is neither as assurance as to the future viability of the

Company nor of the efficacy or effectiveness with which the management has conducted

the affairs of the Company.

TSDJ & Associates

Company Secretaries

Sd/-

Sheela Arvind Membership No: 32648

CP No: ACS 11992 FRN No.P2015KR043500

Place: Bengaluru

Date: 20/09/2017

12th



76

ANNEXURE – 2 – VAT ACT

Vat 100 Filling Details

Sl.

No Month Return Ref No Due Date Date of Filling

Date of

Payment Remarks

1 Apr-16 3531189970

3745919377 20/05/2016

20/05/2016

27/10/2016

19/05/2016

20/07/2016 NA

2 May-16 3529704956

3886400917 20/06/2016

20/06/2016

30/11/2016 20/07/2016 NA

3 June-16 3611284607

3816869397 20/07/2016

20/07/2016

26/12/2016

20/07/2016

20/08/2016 NA

4 July-16

3689793059

3754360841

3966587122

20/08/2016

20/08/2016

29/09/2016

30/01/2017

20/08/2016

19/11/2016 NA

5 Aug-16 3703234539

4034046972 20/09/2016

20/09/2016

28/02/2017 20/09/2016 NA

6 Sep-16

3772762110

3706920261

4073379283

20/10/2016

20/10/2016

27/10/2016

20/03/2017

20/10/2016

20/12/2016

19/11/2016

NA

7 Oct-16 3892215220 20/11/2016 19/11/2016 19/11/2016 NA

8 Nov-16 3895762911

4265029611 20/12/2016

20/12/2016

26/05/2017

20/12/2016

20/01/2017 NA

9 Dec-16 3902468131

4221528380 20/01/2017

20/01/2017

28/06/2017 20/01/2017 NA

10 Jan-17 3921925023

4347079421 20/02/2017

20/02/2017

31/07/2017 17/02/2017 NA

11 Feb-17 4081374963

4392178505 20/03/2017

20/03/2017

31/08/2017 20/03/2017 NA

12 Mar-17 41500051747 20/04/2017 20/04/2017 18/04/2017 NA

12th



77

Annexure 1: Company Information

Sl.No. Particulars

1. Name of the Company M/s.CHAMUNDESHWARI ELECTRICITY

SUPPLY CORPORATION LIMITED

2. CIN No. of the Company U40109KA2004SGC035177

3. Date of Incorporation 06/12/2004

4. Authorized Share Capital 750,00,00,000

5. Subscribed Share Capital 5,08,56,54,340

6. Paid Up Share Capital 5,08,56,54,340

7. Registered Office Address No. 29, Vijayanagara 2nd stage, Hinakal,

Mysuru 570017

2: Changes in Capital Structure during 01/04/2016 to 31/03/2017.

CAPITAL STRUCTURE (In `)

Particulars

As on

01/04/2016

Add: increase

in capital (if

any)

Less:

reduction in

capital (if any)

Date of

passing

Resolution

Capital as on

31/03/2017

Authorized

Capital

6,000,000,000 1,500,000,000 - 17/01/2017 750,00,00,000

Equity 60,00,00,000 15,00,00,000 - 17/01/2017 75,00,00,000

Unclassified - - - - -

Issued Capital 508,56,54,340 - - - 508,56,54,340

Subscribed

Capital

508,56,54,340 - - - 508,56,54,340

Paid-up Capital 508,56,54,340 - - - 508,56,54,340

Public Issue - - Not Applicable - -

Rights Issue - - Not Applicable - -

Bonus Issue - - Not Applicable - -

Private

Placement/

- - Not Applicable - -

12th



78

CAPITAL STRUCTURE (In `)

Particulars

As on

01/04/2016

Add: increase

in capital (if

any)

Less:

reduction in

capital (if any)

Date of

passing

Resolution

Capital as on

31/03/2017

Preferential

Allotment (other

than conversion)

Private

Placement/

Preferential

Allotment

(arising out of

conversion)


Allotment of

shares pursuant

to ESOP


Allotment

consequent to

Scheme of

Arrangement/

Merger/

Amalgamation

etc.


Buy back of

shares

- Not Applicable - - -

Reduction of

Capital

- Not Applicable - - -

Share Forfeited - - - - -

1. The Company has enhanced the Authorised Capital from ` 600,00,00,000 to

` 750,00,00,000 in the Extra Ordinary General meeting held on 17/01/2017.

12th



79

3: Directors & KMP (Existing and any change made between 01/04/2016 to 31/03/2017)

Sl.

No. Name & Designation Address

Date of

Appointment

Date of

Cessation

1

Poondla Ravi Kumar

director

DIN : 02285126

No. 373,12th Cross, 5main,

Hig Colony, New Bel Road,

Bangalore, 560094 Karnataka

10/02/2014

10/03/2017

2

Kiran Doddappa

Managing director

DIN : 06849060

#1620, 6th A Main,,

Ramakrishna Nagar, Mysore,

570022, Karnataka

10/01/2014 -

3

Munivenkatappa Nagaraja

Director

DIN: 02893520

29/1, 2nd Cross,

Kanakanapalya 4th Block,

Jayanagar, Bangalore BBMP,

560011, Karnataka

08/10/2009 -

4

Shikha Chandramohan

Director

DIN: 06447295

A.T.I, Lalitha Mahal Road,

Mysore, 570011, Karnataka 21/08/2013 07/04/2016

5

Sumanth Shankar Rao

Independent Director

DIN: 00349212

No. 234, 6th Main, Jayanagar

4th Block, Bangalore, 560011,

Karnataka

06/09/2013 01/12/2016

6

Alana Shivanna

CFO ( KMP)

PAN: ARAPS5683G

No. 570, First Main, Kuvempu

Road, Bogadi Village, Mysore,

570026, Karnataka

01/12/2014 -

7

Pratap Maneiah

Director

DIN: 07089349

No. 73 6th main, 2nd stage, E

Block, Rajaji Nagar,

Bangalore, 560010, Karnataka

12/12/2014 -

8

T H Mohan Kumar

Director

DIN: 07171390

#237, 67th Cross, 5th Block,

Rajajinagar, Bengaluru,

560010, Karnataka, India

17/01/2015 07/04/2016

9

Sindhu B

Director

DIN: 07169103

720,11th Main, T K Layout,4th

Stage, Mysore, 570009,

Karnataka

02/03/2015 31/12/2016

10

Alenahalli Ningegowda

Jayaraj

Director

DIN: 07178623

32 1st Cross 6th Main

Sarvabouma Nagar

Chikkallasa, Bangalore South

Subramanyapura Bangalore

South, Bangalore, 560061

07/04/2015 -

12th



80

Sl.


Date of

Appointment

Date of

Cessation

11

Narayanappa Lakshmana

Director

DIN: 06724550

399, 4th Crs, 4th Mn, Hebbal,

Kempapura, Coffee Board

Layout, Bangalore, 560024,

Karnataka

17/06/2015 17/08/2016

12

Arif Khan

Director

DIN : 07540019

#61 AP Road, Pension

Mohalla, Hassan,

Karnataka, 573201

09/06/2016 -

13

Dasabhovi Gopal

Director

DIN : 07544671

S/O Late Dasabhovi

#110,2nd Cross, Raghavendra

Nagar, Mysore, Karnataka

570011

15/06/2016 -

14

Huchegowda

Director

DIN : 07532198

Sannenahalli,

Sagathavalli Hassan

Karnataka, 573116

31/05/2016 -

15

Swamy Gowda

Director

DIN : 07532258

212, 25th Cross,

Kuvempunagar, Hassan,

Karnataka 573201

-

16

Kasturaiah Govindraju

Independent Director

DIN: 06754470

#758, 8th main, 3rd stage

4th block, Basaveswaranagar

Bangalore Karnataka, 560079

07/05/2016 24/09/2016

17

Ajay Nagabhushan

Director

DIN: 02714891

CEO Quarters, Narayanpur

Near TV Tower, Haliyal Road

Dharwad, Karnataka,580008

07/05/2016 12/09/2016

18

K T Mahantappa

Director

DIN : 06981574

Quarter Number 1, New

Electric Colony, Kotitopu

Road, Tumkur, Karnataka,

572102

17/08/2016 -

19

Doddaiah Siddaraju

Director

DIN : 07585636

4-24, Kollegal-11, Kollegal

Karnataka, 571440 08/08/2016 -

20

Charulata Somal

Director

DIN : 07540067

G-30 Hyderabad Estate

L.D. Rupar3el Marg

Mumbai, Maharashtra

400006

03/08/2016 -

12th



81

Sl.


Date of

Appointment

Date of

Cessation

21

Shivakumar D K

Director

DIN : 02021885

# 602/A5, 18th Cross, Upper

Palace Orchards,

Sadashivanagar, Malleswaram

Bangalore Karnataka 560080

24/09/2016 10/03/2017

22

Hanumappa Nagesh

Director

DIN: 02309417

#001, No.15, Cornwell Road

Langford Town, Bg-25

Bangalore, Karnataka

560025

01/12/2016 -

23

Pavan Kumar Malapati

Director

DIN : 07793505

No. 3/1, Mustur,

Bathalapalli, Anantapur

Andhra Pradesh 515001

31/12/2016 -

24

Rajneesh Goel

Director

DIN : 02019133

Managing Director, KSIIDC,

Khanija Bhavan, 4th Floor, 49,

Race Course Road,

Bangalore, Karnataka 560001

10/03/2017 -

25

Chandrakala B K

Director

DIN : 07536471

Belagavally Estate,

Bikkode(Venktipete), Hassan,

Karnataka 573215

06/06/2016 -

26

Madan Murali

Director

DIN : 07532253

17B Nanjappa Bld

Opp Taluk Off Bsk

Shakambarinagar K K Pura

RD, Bangalore, Karnataka

560070

31/05/2016 -

27

Latha Jayanna

Director

DIN : 07540068

#230-2, Alur Chamarajanagar

TQ,Karnataka, 571113 09/06/2016 -

28

C K Suresh

Director

DIN : 07532257

20, A Cholenahalli,

D G Halli, C R Patna Hassan

Dist, Karnataka, 573220

31/05/2016 -

12th



82

4: List of Share Holding pattern as on AGM Date 26/09/2016

Sl.

No Name of the Shareholders

No. of

Shares held

Nominal Value

of the Shares

held (in )

Percentage

Shareholding

( % )

1

Governor of Karnataka represented

by: P. Ravikumar (as Nominee of GOK)

Addl. Chief Secretary,

Energy Department , Govt. of Karnataka

No.236, Vikasa Soudha

Bangalore-560001

50,85,65,428 10 99.9999988

2

ISN Prasad

Principal Secretary

Finance Department Govt. of

Karnataka, Vidhana Sauda,

Bangalore-560 001

(as Nominee of GoK)

1 10 0.000000196

3

D Kiran, IRS

Managing Director - CESC

No. 927 LJ Avenue Commercial

Complex, New Kantharaj Urs Rd

Saraswathipuram, Mysore-570 016

(as Nominee of GoK)

1 10 0.000000196

4

S. Sumanth

Director (Technical) - CESC




(as Nominee of GoK)

1 10 0.000000196

5

K T Mahantappa

Director (Technical) - CESC




(as Nominee of GoK)

1 10 0.000000196

12th



83

4: List of Share Holding pattern as on AGM Date 26/09/2016

Sl.

No Name of the Shareholders

No. of

Shares held

Nominal Value

of the Shares

held (in )

Percentage

Shareholding

( % )

6

M Pratap

Chief Engineer, Transmission zone,

KPTCL, FTS compound, NR Mohalla,

Mysore, (as Nominee of GoK)

1 10 0.000000196

7

R Balasubramanian

Executive Director (CA) & Company

Secretary, KPC Ltd., RC Road

Bangalore-560 001

(as Nominee of GoK)

1 10 0.000000196

Total 50,85,65,434 10 100

5: Transfers during the Year:

Sl.

No.

Date of

Transfer Transferor’s Name

Folio

No.

Transferee’s

Name

Folio

No.

No. Of

Shares

1 25/06/2016 C. Shikha 32 S. Sumanth 39 01

2 25/08/2016 N.Lakshman 38 K T Mahantappa 40 01

3 17/01/2017 S.Sumanth 35 H Nagesh 41 01

4 17/01/2017 R. Balasubramanian 27 K T Hiriyanna 42 01

Note: 1. Sri. S. Sumanth and Sri. R.Balasubramanian were shareholders as on Annual

General Meeting dated 26th September 2016 and consecutively their shares were

transferred to Sri. Nagesh and Sri. K T Hiriyanna as on 17th January 2017 as reflected

above.

12th



84

6: Forms, Returns filed by the company between 01/04/2016 to 31/03/2017.

Forms and Returns filed by the Company pursuant to the provisions of the Companies Act, 2013 read with

the Rules/ Regulations made there under

Financial Year 2016 – 17

Sl.

No.

Form

No.

Section &

Rule

Applicable

Particulars

of Filing

Date of

Filing

Whether

filed within

the

prescribed

time

In case of delay,

whether

prescribed

procedure

followed and

additional fees

paid

SRN Status

1 Form ADT-1 Section 139 Auditors

Appointment 26/10/2016 No

Yes With Additional

Fees (600+3600) G17607201 Filed

2 Form CHG-1 Section 77

Creation with Rural

Electrification

Corporation Limited

20/09/2016 Yes - G11868676 Filed

3 Form CHG-1 Section 77 Creation with State

Bank of Mysore 07/10/2016 NO

Yes Additional

Fees (600+1200) G13872635 Filed

4. Form CHG-1 Section 77 Creation with State

Bank of Mysore 16/05/2016 YES -

G03367356 Filed

5. Form CRA-4 Section148 Cost auditor report 26/10/2016 Yes - G17893785 Filed

6 Form DIR-12 Section 168

& 170

Sri. Ajay

Nagabhushan 05/11/2016 No

Yes with additional

fees (600+6000) G19972777 Filed


& 170

Sri. Ajay

Nagabhushan 07/11/2016 No

Yes with additional

fees (600+1200) G20176921 Filed


& 170

1. Sri. Arif khan

2. Sri. Dasabhovi

Gopal

3. Sri. Huchegowda

4. Sri. Swamy

Gowda

29/08/2016

No

Yes with additional

fees

(600+2400)

G10125623

Filed


& 170

1. Sri. Shikha

Chandramohan

2. Sri. Thamenahalli

Hanumantharaya

ppa Mohankumar

30/08/2016 No

Yes with additional

fees (600+6000)

G10215994 Filed


& 170

Sri. Shivakumar

Kempegowda

Doddahalahalli

10/11/2016 No

Yes with additional

fees (600+1200)

G21121603 Filed

12th



85

Sl.

No.

Form

No.

Section &

Rule

Applicable

Particulars

of Filing

Date of

Filing

Whether

filed within

the

prescribed

time

In case of delay,

whether

prescribed

procedure

followed and

additional fees

paid

SRN Status


& 170

Sri. Kasturaiah

Govindraju 04/11/2016 No

Yes with additional

fees (600+6000) G19795830 Filed


& 170

1. Sri.Narayanapp

a Lakshmana

2. Sri. Kukkawada

Totadabasappa

Mahantappa

3. Sri. Doddaiah

Siddaraju

10/11/2016 No Yes with additional

fees (600+3600) G21071469 Filed

13 Form MGT 14 Section 117 56th BM 10/05/2016 YES - G02991420 Filed

14 Form MGT 14 Section 117 56th BM 10/05/2016 yes - G02983765 Filed

15 Form MGT 14 Section 117 59th BM 19/09/2016 No Yes with additional

fees (600+1200) G11768652 Filed

16 Form MGT 14 Section 117 49th BM 10/05/2016 Yes - G02994275 Filed

17 Form PAS 3 Section 39 56th BM 22/06/2016 Yes - G05805486 Filed

18 Form SH 7 Section 64

Enhancement

Of Authorised

share capital

13/05/2016 Yes - G03241775 Filed

19 Form AOC-4 Section 134

Balance Sheet &

Profit & Loss

account

07/12/2016 NO Yes Additional

Fees (600+2400) G28574663 Filed

20 Form MGT-7 Section 92 Annual Return 25/11/2016 Yes - G24938789 Filed


Creation with Rural

Electrification

Corporation Limited

17/04/2017 YES - G41118753 Filed


Creation with Rural

Electrification

Corporation Limited

30/03/2017 Yes - G39552245 Filed

23 Form SH 7 Section 64

Enhancement

Of Authorised

capital

22/03/2017 No

Yes with additional

fees

(600+19)

G38826509 Filed

24 Form MGT

14 Section 117 62nd BM 24/03/2017 NO

Yes with additional

fees

(600+2400)

G39042619 Filed

25 Form CHG-1 Section 77 Creation with Rural 30/03/2017 Yes - G39552435 Filed

12th



86

Sl.

No.

Form

No.

Section &

Rule

Applicable

Particulars

of Filing

Date of

Filing

Whether

filed within

the

prescribed

time

In case of delay,

whether

prescribed

procedure

followed and

additional fees

paid

SRN Status

Electrification

Corporation Limited

26 Form CHG-1 Section 77 Creation with

Syndicate Bank 03/04/2017 Yes - G39935713 Filed

7: Board Meeting Minutes

MINUTES

Board Meeting

Date of

Meeting

Gap

Between

the two

Board

Meetings

Has the

notice

been

served

on time

Place of

Meeting

Total No. of

Directors on

the Board on

date of

Meeting

Leave of

Absence

Granted

to

Director

Total No.

of

Directors

Present

Chairman of the

Meeting

04/07/2016 95 Days Yes Vikasa

Souda 20 3 17 Sri. P.Ravikumar

16/07/2016 11 Days Yes Registered

Office 20 5 15 Sri. P.Ravikumar


Office 20 5 15 Sri. P.Ravikumar


Office 20 6 14 Sri.P.Ravikumar


Office 20 4 16 Sri. D.K. Shivakumar

17/01/2017 112 Days Yes

Kaveri

Bhavan,

KPTCL

20 4 16 Sri. D.K. Shivakumar

Note: 1. Smt.B.Sindhu and Sri. Ajay Nagabhushan Directors has not attended any Board

Meeting during their tenure of Directorship.

8. Purchase Committee meeting details:

12th



87

The Company has constituted the Purchase Committee comprising 3 Members i.e.,

Sri. D. Kiran (Chairman), Sri. N. Lakshmana, Sri. M Pratap. Shri. Lakshmana transferred

with effect from 17th August 2016 and Shri. K.T.Mahantappa was appointed in his place.

The Company has Conducted 6 (Six) Purchase Committee meeting during the year 2016-

17, i.e. on 06.04.2016, 08.07.2016, 27.08.2016, 14.11.2016, 23.12.2016 and 04.03.2017 at

the registered office of the Company.

9. Audit Committee Meeting Details:

The Company has constituted the Audit committee meeting comprising 4

Directors, i.e, Sri. H.Nagesh, Sri. K.T. Mahantappa, Sri. M.Pratap, Sri. Pavan Kumar

Malapati The Company has conducted 2 (Two) Audit Committee meeting during the Year

2016-17 i.e on 08.07.2016 and 17.01.2017

10: Annual/Extra Ordinary General Meeting Minutes

Date of

Meeting

Date of

serving the

Notice

Place of

Meeting

No. of

Members

Attended

the

Meeting

No. of

Proxy

attended

the

Meeting

Chairman of the

Meeting

26/09/2016

AGM

(Conducted at

Shorter Notice)

24/09/2016 Registered

Office

7

-

Shri. D.K.Shivakumar

Chairman & Governor’s

representative

EGM

(Conducted at

Shorter Notice)

17/01/2017

KPTCL,

Cauvery

Bhavan

6

-

Shri. D.K.Shivakumar

Chairman & Governor’s

representative

Note: 1. Sri.H.Nagesh was granted Leave of Absence from attending EGM.

10: Details Regarding Office of Place of Profit:

CESCOM being a government company, the above provision is not applicable. All

the directors are Government representative, there is no interest being government

nominees.

11: KEY MANAGERIAL PERSONNEL

Name of Person /PAN: KIRAN DODDAPPA

Qualification: IRS Officer

Age : 38 Years

12th



88

Designation: Managing Director

Date of Appointment: 01/12/2014

Remuneration as per last Salary drawn: Rs.13,47,895 (as per Schedule V)

Date of filing of MGT-14 and DIR12 and SRN: Filed DIR 12 Vide SRN C02784114

No. of shares held: 01

12: Creation of Charge.

Sl.

No. Charge ID

Date of

Charge

Creation/

Modification

Charge

amount

secured

Charge Holder Address

Service

Request

Number

(SRN)

1 100090065 30/03/2017 100,00,00,000

Rural

Electrification

Corporation

Limited

1/5 Halasuru

Road Bangalore

560042

G41118753

2 100092096 30/03/2017 250,00,00,000 Bank of India

#15, Vectra

House, 3rd Floor,

1st Main Road,

6th Cross,

Gandhinagar,

Bengaluru KA

560009I

G41833310

3 100086443 16/03/2017 22,87,32,000

Rural

Electrification

Corporation

Limited

1/5, Halasuru

Road, Bangalore

KA560042

G39552245

4 100086445 16/03/2017 100,00,00,000

Rural

Electrification

Corporation

Limited

1/5 Halasuru

Road Bangalore

KA 560042

G39552435

5 100087361 10/03/2017 175,00,00,000 Syndicate

Bank

Kuvempunagar

Branch New

Kantharaja Urs

Road Mysore KA

570023

G39552435

6 100049975 25/08/2016 100,00,00,000 Rural

Electrification

Core 4scope

Complex 7 Lodi

12th



89

Sl.

No. Charge ID

Date of

Charge

Creation/

Modification

Charge

amount

secured

Charge Holder Address

Service

Request

Number

(SRN)

Corporation

Limited

Road New Delhi

110003

G11868676

13: CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company has formed the CSR Committee with effect from 4th July 2016. The

Members of the CSR Committee are Sri. H. Nagesh (Chairman), Sri. K T Mahantappa and

Sri. M.Pratap. The Company is yet to execute selected projects on Corporate Social

Responsibility.

12th



90

COMMENTS OF THE COMPTROLLER AND AUDITOR GENRAL OF INDIA

UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE

FINANCIAL STATEMENTS OF CHAMUNDESHWARI ELECTRICITY SUPPLY

CORPORATION LIMITED, MYSORE FOR THE YEAR ENDED 31 MARCH 2017.

The preparation of financial statements of Chamundeshwari Electricity Supply

Corporation Limited, Mysore for the year ended 31 March 2017 in accordance with the

financial reporting framework prescribed under the Companies Act, 2013 is the responsibility

of the management of the company. The statutory auditor appointed by the Comptroller and

Auditor General of India under section 139 (5) or 139(7) of the Act is responsible for

expressing opinion on the financial statements under section 143 of the Act based on

independent audit in accordance with the standards on auditing prescribed under

section 143(10) of the Act. This is stated to have been done by them vide their Audit Report

dated 21.09.2017.

I, on behalf of the Comptroller and Auditor General of India, have conducted a

supplementary audit under section 143(6) (a) of the Act of the financial statements of

Chamundeshwari Electricity Supply Corporation Limited, Mysuru for the year ended

31 March 2017 .This supplementary audit has been carried out independently without

access to the working papers of the statutory auditors and is limited primarily to inquiries of

the statutory auditors and company personnel and a selective examination of some of the

accounting records. In view of the revisions made in the financial statements by the

management, as a result of my audit observations highlighted during supplementary audit as

indicated in the Note No. 36 of the financial statements, I have no further comments to offer

upon or supplement to the statutory auditors’ report under section 143(6)(b) of the Act.

For and on behalf of the

Comptroller and Auditor General of India

Sd/-

(BIJIT KUMAR MUKHERJEE)

ACCOUNTANT GENERAL

(ECONOMIC & REVENUE SECTOR AUDIT)

KARNATAKA,BENGALURU

Bengaluru

Date:- 21.09.2017

12th



91

BALANCE SHEET AS AT 31st MARCH 2017

(Amount ` in Lakhs)

SL. NO.

PARTICULARS NOTE

NO

AS AT THE END OF CURRENT

REPORTING PERIOD 31.3.2017

AS AT THE END OF PREVIOUS


I EQUITY AND LIABILITIES

(1) Shareholder's Funds

a) Share Capital 1 50856.54

50856.54

b) Reserves and Surplus 2 6395.50

-3510.81

(2) Share Application Money Pending Allotment

3 15229.00

1400.00

Sub-Total

72481.04

48745.74

(3) Non-Current Liabilities

a) Long-term borrowings 4 100404.03

85330.24

b) Deferred Tax Liabilities(Net)

5 9074.61

7169.05

c) Other long term liabilities

6 61837.94

55861.14

d) Long-term Provisions 7 0.00

0.00

Sub-Total

171316.58

148360.43

(4) Current Liabilities

a) Short-term borrowings 8 24013.03

4157.85

b) Trade payables

Dues to MSMEs

0.00

0.00

Due to others 9 286800.53

231553.78

c) Other current liabilities 10 99120.36

92320.43

d) Short-term provisions 11 588.99

0.00

Sub-Total

410522.91

328032.05

TOTAL

654320.53

525138.22

II Assets

1 Non-Current assets

(a) Fixed assets

(i) Tangible Assets 12 229200.49

188993.53

(ii) Intangible assets 13 515.17

3.31

(iii) Capital work-in-progress

14 26019.02

26174.35

(iv) Intangible assets under development

15 351.20

0.00

12th



92

SL. NO.

PARTICULARS NOTE

NO

AS AT THE END OF CURRENT


AS AT THE END OF PREVIOUS


(b) Non-Current investments

16 251.00

251.00

( c) Deferred tax assets (net) 17 0.00

0.00

(d) Long term loans and advances

18 0.00

4.69

(e) Other non-current assets

19 122017.83

52395.08

Sub-Total

378354.71

267821.95

2 Current assets

(a) Current Investments 20 0.00

0.00

(b) Inventories 21 5081.52

6831.39

(c ) Trade receivables 22 216031.85

181241.76

(d) Cash and bank Balances

23 16728.92

19178.99

(e) Short-term loans and advances

24 6728.46

12737.14

(f) Other current assets 25 31395.06

37326.99

Sub-Total

275965.82

257316.27

TOTAL

654320.53

525138.22

Significant Accounting policies, Notes on Accounts form integral part of these financial statements

Sd/- Sd/- Sd/-

(A.Shivanna) (K.T. Mahanthappa) (D.Kiran)

Chief Financial Officer Director (Technical) Managing Director

PLACE: MYSURU

DATE : 21.09.2017

In terms of our report of

Even date attached herewith

For Ganesan & Company

Chartered Accountants

Sd/-

(G.HARIGOVIND)

Partner

Membership No: 206563

12th



93

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31.03.2017

(Amount ` in Lakhs)

SL. NO. PARTICULARS

NOTE NO.

CURRENT YEAR

2016-17

PREVIOUS YEAR

2015-16

I Revenue from operations (Distribution of Power) 26 347902.86 277583.10

II Other Income 27 21132.44 21523.42

III Total Revenue (I+II)

369035.30 299106.52

IV Expenses

Purchase of Power 28 326690.70 271774.60

Employee Benefits Expense 29 31541.01 32765.04

Finance Costs 30 19720.03 15030.15

Depreciation and amortization expenses 31 14757.07 11745.83

Other Expenses 32 23406.14 11947.37

Total Expenses

416114.95 343263.00

V PROFIT BEFORE TAX & RATE REGULATED ACTIVITIES (III-IV)

-47079.65 -44156.47

VI Less Regulatory Income / Expenses 33 51798.60 46446.00

VII Extraordinary Items

VII PROFIT BEFORE TAX (V-VI)

4718.95 2289.53

VIII TAX EXPENSE

Provision for Taxation - Current Tax

34

669.02 0.00

Short Provision for Income Tax- Previous years 0.00 0.00

Deferred Tax Asset / Liability 1905.56 1497.25

IX Profit / (Loss) from the period from continuing operations (VII-VIII)

2144.37 792.28

X Profit / (Loss) from discontinuing operations

XI Tax expense of discontinuing operations

0.00 0.00

XII Profit / (Loss) from discontinuing operations (after Taxes)

XIII Profit / (Loss) for the period (IX +/- XII)

2144.37 792.28

XIV Earning per equity share (in `)

0.66 0.24

Basic and diluted

Significant Accounting policies, Notes on accounts form integral part of these financial statement.

Sd/- Sd/- Sd/- (A.Shivanna) (K.T. Mahanthappa) (D.Kiran) Chief Financial Officer Director (Technical) Managing Director PLACE: MYSURU DATE : 21.09.2017

In terms of our report of even date attached herewith

For Ganesan & Company Chartered Accountants

Sd/-

(G.HARIGOVIND) Partner

Membership No: 206563

12th



94

CASH FLOW STATEMENT FOR THE YEAR 2016-17

(Amount ` in Lakhs)

Particulars Current Year 2016-17 Previous Year 2015-16

A. Cash Flow from Operating activities

Profit before taxation 4718.95

2289.54

4718.95

2289.54 ADD : Adjustments for

Depreciation 15829.05

12870.44

Interest & Finance Charges 19720.03

15030.15

Income tax/Deferred Tax -2574.58 32974.51 -1497.25 26403.35 Operating Profit before Working Capital Changes

37693.46

28692.88

Adjustments for

Trade receivables -25721.09

51672.72

Other Receivables -58138.58

-53317.37

Loans,deposits & Advances (Non trade) -283.42

-93.45

Trade/Current payables 45295.36

3684.40

Reserve for Material cost variance

-4051.56

Inventories -520.07

-2601.37

Other bank balance 728.08 -38639.73 137.54 -4569.10 Cash generated from Operations

-946.27

24123.78

Less Net Income tax (paid)/refunds 35.34 35.34

25.46 Net Cash from operating activities (Total of 'A')

-910.94

24149.25

B. Cash Flow from Investing Activities

Purchase/Acquisition of fixed Assets (Net) -54277.94

-58045.96

Capital Works in Progress -195.88

13977.77

Capital Advances 5922.85

3885.26

Net Cash from Investing activities (Total of 'B')

-48550.96

-40182.94 C. Cash Flow from Financing Activities

Proceeds from Borrowings 74964.55

45398.53

Repayments of borrowings -36366.46

-22452.58

Shares Pending allotment 13829.00

12773.04

Contribution, grant and Subsidy towards Capital assets

11162.93

2658.30

Service Line & Security Deposits 1075.22

1226.01

Interest & Finance Charges -16925.33

-13661.89

Net Cash Flow from Financing Activities (Total of 'C')

47739.91

25941.41

(Increase)/(Decrease) in Cash & Cash Equivalents

-1721.99

9907.72

Add : Cash and Cash equivalents as at the commencement of the Period

18325.66

8417.94

Cash and Cash Equivalents as at the end of the Period

16603.67

18325.66

Notes: 1.The above statement has been prepared in indirect method as per AS-3 2. Cash and Cash equivalent refer note 23 of the financial statement

Sd/-

(A.Shivanna) Chief Financial Officer

Sd/- (K.T. Mahanthappa)

Director (T)

Sd/- (D.Kiran)

Managing Director

PLACE: MYSURU

DATE : 21.09.2017

In terms of our report of even date attached herewith For Ganesan and Company


Sd/- (G.HARIGOVIND)

Partner Membership No 206563

12th



95

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.3.2017

NOTE: 01 SHARE CAPITAL

(`in Lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

1.1

Authorised Capital

75,00,00,000 Equity shares

of `10/- each

75000.00

60000.00

1.2

Issued, Subscribed and

Paid up Equity Share Capital

50,85,65,434 Equity Shares

of `10/- each)

52.3017 50,856.54

50,856.54

50,856.54

50,856.54

TOTAL

50,856.54

50,856.54

1.3

Company is having one Share each in the name of 6 Directors and remaining

shares are held in the name of his Excellency Governor of Karnataka.

1.4 The reconciliation of the No. of Equity shares outstanding is set out below:

Particulars As at 31.3.2017 As at 31.3.2016

No. of Equity Shares at the beginning of the year 508565434 325515034

Add: No. of Equity shares issued during the year 0 183050400

Less: No of Equity Shares cancelled on buy

back during the year 0 0

No of Equity Shares at the end of the Year 508565434 508565434

Based on order of GOK dated 10.09.2015, Capital grants of ` 66,36,04,000/- Received from

GOK since 2011-12 have been converted into equity during the year 2015-16.

1.5 Details of Authorised Share Capital (` in Lakhs)

Sl.

No. Year

Authorised

Share Capital Reference

1 2005-06 500.00

Memorandum of Association

1st BM held on 26th March, 2005 at 3.00 PM at the Board

Room, KPTCL, 1st Floor Kaveri Bhavan, Bangalore

2 2006-07 1,500.00

Extraordinary General Meeting of the Shareholders of the

Company held on 13th May 2005 at 4.30 P.M. at Board

Room Kaveri Bhavan, Bangalore

3 2007-08 15,000.00

15th BM held on 17th Septemeber,2007 at 5.00 PM at

the Board Room, KPTCL, Kaveri Bhavan, Bangalore

2nd AGM held on 11th October 2007 at 1.15 PM at the

Registered Office of the Company, Mysore

12th



96

1.5 Details of Authorised Share Capital (` in Lakhs)

Sl.

No. Year

Authorised

Share Capital Reference

4 2008-09 15,000.00 _

5 2009-10 15,000.00 _

6 2010-11 25,000.00

28th BM held on 31st March,2010 at DSM Conference

Hall, BESCOM, KR Circle, Bangalore


Company held on 9th August 2010 at 11.30 A.M. at Room

No.222, II Floor, Vikasa Soudha, Bangalore

7 2011-12 25,000.00 -

8 2012-13 30,000.00 35th BM held on 17th November,2011 at 11.00 A.M. at

Room No. 222, Vikasa Soudha, Bangalore

9 2013-14 45,000.00 8th AGM on 16th December,2013 at 4.30 P.M at

Registered Office, CESC, Mysore

10 2015-16 60,000.00


Company held on Wednesday the 30th March 2016 at

11.15 A.M. at the Room No. 222, Vikasa Soudha,

Bangalore

11 2016-17 75,000.00


Company held on Tuesday the 17th January 2017 at 6.00

P.M. at Conference Hall, KPTCL. Kaveri Bhavan,

Bengaluru-560009.

Terms and rights attached to equity shares

The company has only one class of equity shares having a par value of `10 per share.

Each holder of equity shares is entitled to one vote per share. In the event of liquidation of

the company, the holders of equity shares will be entitled to receive the assets of the

company, in proportion to the number of equity shares held by the shareholders.

1.6 Details of Share Holding of More than 5% (` in Lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

Number of

Shares

Percen

tage

Number of

Shares

Percen

tage

1 Hon’ble Governor,

State of Karnataka 508565428 99.99 508565428 99.99

12th



97

NOTE: 02 RESERVES AND SURPLUS (` in Lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

2.1

Capital Reserve: 56.2 239.17 239.17 239.17 239.17

As per Last Balance

Sheet

Add: Additions during

the year

Less: Utilised during

the year

2.2

Others

Proposed adjustment to

networth Account 52.3047 (3,401.01) (3,401.00) 0.00 -

2.3

Profit and Loss

Account (Surplus)

As per Last Balance

Sheet 58.2007 (63,426.58)

(64,218.86)

Add: Additions during

the year P &L A/c 2,144.37

792.28

(61,282.21)

(63,426.58)

2.4

Contribution,grants

and subsidies towards

cost of Capital assets

2.4.1

Consumers

Contributions towards

cost of Capital assets

55.1007

to

55.1167

68,222.20

55,536.13

2.4.2 REC-RGGVY Scheme

subsidy A/C 55.2037 16,447.16

16,559.81

2.4.3 Grant towards cost of

capital assets - IPDS 55.3037 1,028.00

2.4.4

Grant towards cost of

capital assets -

DDUGJY

55.3047 1,673.05

2.4.5 Special Grant Towards

Capital works (GOK)

55.3007+

55.5007+

55.3017+

6,109.69

5,699.55

12th



98

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

55.2007+

55.3027

Total Grants,

Contribution & Subsidy 93,480.09

77,795.49

2.4.6 Less Reversal of

Depreciation 55.9607 22,640.56 70,839.54 18,118.88 59,676.60

TOTAL

6,395.50

(3,510.81)

Pursuant to GOK order No EN 67 PSR 2017 Banagalore Dated 31.07.2017, for

transfer of outstanding power purchase cost of ` 888.89 crores, interest of ` 467.52 crores

relating to M/s. KPCL in the books of M/s. KPTCL along with subsidy of ` 986.50 crores

receivable from Government by M/s. KPTCL for the period prior to 9th June 2005 to

ESCOMs, 9.1933% of the total share of all ESCOMs was allocated to CESC towards

subsidy dues of KPTCL and Power Purchase dues including interest of KPCL. Vide the

above Order, the Company has accounted ` 90.69 Crores subsidy to be received as

Receivable from GoK, ` 81.72 Crs as Power Purchase dues of M/s. KPCL and ` 42.98 Crs

as interest on Power Purchase dues payable to M/s. KPCL during the financial year 2016-

17. Further, the Order has also directed write back the interest to account the difference in

receivables and payables resulting from the above transaction under ‘Proposed Adjustment

to Net Worth Account’, which have also been complied.

NOTE: 03 SHARE DEPOSIT(SHARES PENDING ALLOTMENT) (` in Lakhs)

Sl.No Particulars Account

Code As At 31.3.2017 As At 31.3. 2016

3.1 Share Deposit from

GOK Pending Allotment 52.3037 15,229.00

1400.00

TOTAL

15,229.00

1,400.00

3.2

Share Deposit Pending allotment

GoK in its order no: EN58 PSR 2013 Bangalore dated 23.09.2013 has accorded

approval for Equitable Distribution of ` 70.00 Crs paid towards 50% of the cost of

power block of Jurala Hydro Electric Project among Electricity Supply Companies.

The amount was paid by PCKL to Andra Pradesh Power Generation Corporation

Ltd on behalf of ESCOMs. The share of CESC amounting to ` 14.00 Crs is

accounted as Share deposit received from GoK.

Pending allotment of shares by the company the following amounts received from

GoK towards equity are held under share deposit (Share pending allotment)

12th



99

Equtiy received details

3.3 EN 27 PSR 2016 Bangalore, Dated, 31.05.2016 `30.00 Crs











NON CURRENT LIABILITIES:

NOTE: 04 LONG TERM BORROWINGS (` in Lakhs)

Sl.No Particulars Account

Code As At 31.3.2017 As At 31.3. 2016

4.1 TERM LOANS

4.1.1 SECURED LOANS

4.1.1.1 From Commercial Banks 53.5077 4717.82

7067.79

4.1.1.2 From Syndicate Bank CAPEX 53.5037 6250.00

7916.67

4.1.1.3 From Syndicate Bank CAPEX 53.5007 11395.79

5060.00

4.1.1.4 From SBM Bank Short Term

Loan PP Dues 53.5047

5265.98 4996.00

4.1.1.5 From Syndicate Bank Short

Term Loan 53.5067

0.00 5550.92

4.1.1.6 From PFC R-APDRP

Part A and Part B GOI Loan 53.9617

4357.37 4357.37

4.1.1.7 From PFC R-APDRP

Part B Counter part 53.5097 4085.41

4120.87

4.1.1.8 From REC NJY Phase 1&2

project 53.5107 41796.17

36606.37

12th



100

4.1.1.9 From REC CAPEX FY 13-14 53.3007 4199.30

4199.30

4.1.1.10 From REC Medium Term Loan 53.5057 0.00

3055.56

4.1.1.11 From REC (Medium Term) 53.5117 13333.33

0.00

4.1.1.12 From Bank of India (Capex) 53.5127 0.00

0.00

4.1.1.13 From Syndicate Bank - UNIP

(Long Term) 53.5137 3000.00

0.00

Sub-Total

98401.17 82930.84

4.1.2 UN-SECURED LOANS

4.1.2.1 From Banks

4.1.2.2 From GOK Energisation of IP 53.9777 -

0.00

4.1.2.3 From GOK APDRP loan 53.3047 1072.64

1287.27

4.1.2.4 From REC APDRP 53.3057 140.26

140.26

4.1.2.5 From REC RGGVY 53.9677 789.97

971.87

Sub-Total

2002.86

2399.40

TOTAL

100404.03 85330.24

4.2

At the time of unbundling of transmission and distribution activities and

formation of Electricity Distribution Companies, the Government of Karnataka

has transferred certain loans taken by M/s KPTCL to the Company as part of

transfer of assets and liabilities. The interest Payment as intimated by KPTCL

has been charged off in the books of accounts since the assets have been

commissioned.

4.3 The loan balances between KPTCL and Company is subject to reconciliation

and Confirmation

4.4

4.5

4.6

The details of the loan with the terms and conditions that are transferred to

CESC from KPTCL, are yet to be received, except the loans directly borrowed

by the Corporation.

The repayments towards principal and interest as noted above routed through

KPTCL, the interest on such loans are also accounted based on intimation by

KPTCL

PFC R-APDRP Part A & B GOI loans are eligible for conversion into grants

under the terms of sanction our achievement of stipulated target. The period for

achievement of target is not over.

12th



101

4.7 Reconciliation of loan Balances (` in Lakhs)

Sl.

No.

Name of the Bank/

Financial Institution

A/c

Code

Charge

Creation ID

& Date

Tenure

of

Loan

No. of

installments

Repayment

Terms

Rate of

Interest as on

31.3.2017 (In

%)

Opening

Balance as

on

01.04.2016

Loans

Drawn

During

2016-17

Total

Loans

2016-17

Repayment

of Loan

during

2016-17

Loan

Balance as

on 31.3.2017

I Term Loan Secured

A Loans from -Commercial Banks

1

Synd Bank-Capex

(Secured by

Hypothecation against

Created Assets)

53.5007 10615318 /

29.12.2015 2+5

60 Monthly

installments

Monthly

Repayment &

Last installment

due on 12/2022

10.60 5060.00 6835.79 11895.79 0.00 11895.79

2

SBM- PP dues.

(Secured by Receivables

against CESC Revenue)

53.5047 100026108 /

31.03.2016 3

36 Monthly

installments

Monthly

Repayment &

Last installment

due on 03/2019

10.90 2900.00 7100.00 10000.00 3058.00 6942.00

3

SBM- PP dues.


against CESC Revenue)

53.5047 10593179 /

21.09.2015 3

36 Monthly

installments

Monthly

Repayment &

Last installment

due on 09/2018

11.30 8332.00 0.00 8332.00 3336.02 4995.98

4

SBM-UNIP

(Secured by Created

Assets)

53.5077 10332143 /

16.01.2012 3+6

72 Monthly

installments

Monthly

Repayment &

Last installment

due on 01/2021

12.65 8053.84 0.00 8053.84 1668.02 6385.82

5 SBM-Capex programme.

(Secured by 53.5077 10242976 / 2+5 60 Monthly

Monthly

Repayment & 11.65 2085.95 0.00 2085.95 1404.00 681.95

12th



102


Sl.

No.

Name of the Bank/


A/c

Code

Charge

Creation ID

& Date

Tenure

of

Loan

No. of

installments

Repayment

Terms

Rate of

Interest as on

31.3.2017 (In

%)

Opening

Balance as

on

01.04.2016

Loans

Drawn

During

2016-17

Total

Loans

2016-17

Repayment

of Loan

during

2016-17

Loan

Balance as

on 31.3.2017

Hypothetication against

Created Assets)

13.09.2010 installments Last installment

due on 09/2017

6

Canara Bank-Capex

(Secured by


Created Assets)

53.5077 10171461 /

29.06.2011 7

Quarterly (May, Aug, Nov and

Feb of Every year) & Last

installments due on 06/2018

11.9 694.26 0.00 694.26 694.26 0.00

7

Synd Bank-PP dues.


by Chamundipuram Sub-

division Revenue)

53.5077 10496189 /

29.03.2014 3

36 Monthly

installments

Monthly

Repayment &

Last installment

due on 03/2017

11.35 7017.86 0.00 7017.86 7017.86 0.00

8

Synd Bank-Capex

(Secured by


Created Assets)

53.5037 10545237 /

31.12.2014 1+6

72 Monthly

installments

Monthly

Repayment &

Last installment

due on 12/2021

11.35 9583.33 0.00 9583.33 1666.67 7916.67

9

Synd Bank-PP dues

(Secured against Tariff

Subsidy Released by

GOK)

53.5067 10564836 /

31.03.2015 3

35 Monthly

installments

Monthly

Repayment &

Last installment

due on 03/2018

11.35 11101.84 0.00 11101.84 6013.50 5088.34

10

SBM-Over Draft.


from State Bank of

50.2107

Modified

10445357 /

23.05.2015

Overdraft Account 11.35 4157.85 15688.52 19846.37 0.00 19846.37

12th



103


Sl.

No.

Name of the Bank/


A/c

Code

Charge

Creation ID

& Date

Tenure

of

Loan

No. of

installments

Repayment

Terms

Rate of

Interest as on

31.3.2017 (In

%)

Opening

Balance as

on

01.04.2016

Loans

Drawn

During

2016-17

Total

Loans

2016-17

Repayment

of Loan

during

2016-17

Loan

Balance as

on 31.3.2017

Mysore)

11

Syndicate Bank Term

Loan - For

Regularisation of UNIP

53.5137

2+5 60 Monthly

installments

Monthly

Repayment &

Last installment

due on 03/2024

9.75 0.00 3000.00 3000.00 0.00 3000.00

12 Bank of India Term

Loan - CAPEX 53.5127

3+7

84 Monthly

installments

Monthly

Repayment & Last

installment due on

03/2027 & 3 Year

Moratorium

9.75 0.00 2000.00 2000.00 0.00 2000.00

B Loans from Other Financial Institutions

1

GoI-Though M/s PFC-

R-APDRP Part-A

(Secured by


Created Assets)

53.9617 10265935/

20.12.2010 10

10 Annual

Installments

Annually

(Between June &

March) & Loan

Closed on

12/2020

9.00 1663.97 0.00 1663.97 0.00 1663.97

2

GoI-Though M/s PFC-

R-APDRP Part-B

(Secured by


53.9617 10265936/

20.12.2010 20

10 Annual

Installments

Monthly

Repayment Bases

(From June to

March of Every

9.00 2693.40 0.00 2693.40 0.00 2693.40

12th



104


Sl.

No.

Name of the Bank/


A/c

Code

Charge

Creation ID

& Date

Tenure

of

Loan

No. of

installments

Repayment

Terms

Rate of

Interest as on

31.3.2017 (In

%)

Opening

Balance as

on

01.04.2016

Loans

Drawn

During

2016-17

Total

Loans

2016-17

Repayment

of Loan

during

2016-17

Loan

Balance as

on 31.3.2017

Created Assets) Year) & Loan

Closed on 12/2030

3

M/s PFC-R-APDRP

Part-B Counter Part

Loan ( Secured by

Created Assets+10% of

Existing Assets of

Hunsur Division

53.5097 10406889/

4.2.2013 5+10

10 Annual

Installments

Principal and

Interest Quarterly

& Last Installment

due on 02/2028

12.00 &

10.75 4479.20 369.00 4848.20 373.71 4474.49

4

M/s REC- NJY Phase-1

Project. (Secured by


Created Assets)

53.5107 10401139/

5.1.2013 3+10

10 Annual

Installments

Principal Annually

Interest Quarterly

& Last Installment

due on 01/2026

11.50 &

12.25 &

11.00

6232.46 613.70 6846.16 684.62 6161.54

5

M/s REC- NJY Phase-2

Project. (Secured by

Created Assets)

53.5107

10445166/

2.8.2013,

10467307/

2.12.2013,

10490841/

17.3.2014,

10554852/

17.2.2015

3+10 10 Annual

Installments

Principal Annually

Interest Quarterly

& Last Installment

due on 02/2028

11.50 &

12.00 &

12.25

30997.16 9357.55 40354.72 0.00 40354.72

6 M/s REC- Capex 53.3007 10518409/ 2+5 10 Annual Principal Annually 12.00 &12.25 4199.30

4199.30 0.00 4199.30

12th



105


Sl.

No.

Name of the Bank/


A/c

Code

Charge

Creation ID

& Date

Tenure

of

Loan

No. of

installments

Repayment

Terms

Rate of

Interest as on

31.3.2017 (In

%)

Opening

Balance as

on

01.04.2016

Loans

Drawn

During

2016-17

Total

Loans

2016-17

Repayment

of Loan

during

2016-17

Loan

Balance as

on 31.3.2017

Programme. (Secured by

Created Assets)

11.8.2014 Installments Interest Quarterly

& Last Installment

due on 08/2021

7

M/s REC- Assets

Hypothicated of Hunsur

Division to the extent of

Loan

53.5057 10554858/

16.2.2015 3

36 Monthly

installments

Monthly

Repayment Bases

& Last installment

due on 02/2018

12.75 6388.89

6388.89 3333.33 3055.56

8 M/s REC - Short Term

Loan for PP Dues (New) 53.3017

1

12 Monthly

installments

Monthly

Repayment Bases

& Last installment

due on 08/2017

12.00 0.00 10000.00 10000.00 5833.33 4166.67

9

M/s REC - Medium Term

Loan for PP Dues (New)

21.03.2017

53.5117

3 36 Monthly

installments

Monthly

Repayment Bases

& Loan Closed on

03/2020

12.00 0.00 10000.00 10000.00 0.00 10000.00

10

M/s REC - Medium Term

Loan for PP Dues (new)

31.03.2017

53.5117

3 36 Monthly

installments

Monthly

Repayment Bases

& Last installment

due on 03/2020

12.00 0.00 10000.00 10000.00 0.00 10000.00

Total Secured Loan

115641.32 74964.56 190605.87 35083.32 155522.55

12th



106


Sl.

No.

Name of the Bank/


A/c

Code

Charge

Creation ID

& Date

Tenure

of

Loan

No. of

installments

Repayment

Terms

Rate of

Interest as on

31.3.2017 (In

%)

Opening

Balance as

on

01.04.2016

Loans

Drawn

During

2016-17

Total

Loans

2016-17

Repayment

of Loan

during

2016-17

Loan

Balance as

on 31.3.2017

II Un-Secured Loan

1 GoK-Transferred from

KPTCL 53.9777 10

Annually

Repayment

(April)

Annually (April) 11.00 23.30

23.30 23.30 0.00

2 GoK- APDRP 53.3047 20

Annually

Repayment

(March)

Annually (March)

& Loan Closed 11.50 1501.80

1501.80 214.63 1287.17

3 M/s REC- APDRP-

Works 53.3057 10 Quarterly

Principal and

Interest Quarterly 8.5 - 10 1003.57

1003.57 863.31 140.26

4 M/s REC- RGGVY

Projects 53.9677 15

10 Annual

Installments

Principal Annually

Interest Quarterly

10.75, 11.50

& 11.25 1153.77

1153.77 181.90 971.87

Total Un-Secured Loan

3682.44 0.00 3682.44 1283.14 2399.30

Total - Secured & Un-Secured Loan

119323.76 74964.56 194288.31 36366.46 157921.85

Term Loan due for repayment in next year

(Shown as current Liabilities in Note:10)

29835.67

33504.78

Short Term Loan due for repayment in next

year (Shown as current Liabilities in Note:8)

4157.85

24013.03

Net Long Term Loan (Note-4)

85330.24

100404.03

12th



107

12th



108

NOTE: 05 DEFERRED TAX LIABILITIES (NET) (`in Lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

5.1 Deferred Tax Liability /

Assets (Net) 46.8027 9074.61

7169.05

TOTAL

9074.61

7169.05

5.2 Considering the future earning capacity and other relevant considerations and as a

matter of prudence DTA on carry forward of losses is not considered.

NOTE: 06 OTHER LONG TERM LIABILITIES (` in Lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3. 2016

6.1 Others

6.1.1 Security Deposits from

Consumers

6.1.2 Meter Security Deposits 47.6017 to

47.6047 2632.63

2608.73

6.1.3 Initial/Additional Security

Deposits

48.1017 to

48.1037 49482.88

44338.91

Sub-Total

52115.50

46947.64

6.2 KPCL, KPTCL & Other

ESCOMs

6.2.1 KPTCL/VVNL 42.2147+

42.2247+

42.2297+

42.2197+

42.2037+

42.2127

1502.78

1505.28

6.2.2 BESCOM 42.2157+

42.2257+

42.2207

63.71

63.76

6.2.3 MESCOM 42.7657+

42.8787+

42.2167

28.73

28.73

Sub-Total

1595.22

1597.77

6.3 Staff related Liabilities

6.3.1 Security Deposit from

employees

46.9207 1.00

1.17

6.3.2 Provision for Earned

leave encashment

44.1307 0.76

0.76

Sub-Total

1.76

1.93

12th



109

NOTE: 06 OTHER LONG TERM LIABILITIES (` in Lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3. 2016

6.4 Liability to Suppliers

and Contractors

6.4.1 Security Deposits from

Suppliers/ Contractors

46.1017,

46.1027 1941.73

1299.59

6.4.2 Retention Money 46.1047 5848.48

5632.97

6.4.3 Penalty recovered from

supplier / contractor

46.1097 0.00

0.00

Sub-Total

7790.21

6932.56

6.5 Payables to GOK

6.6 BRP-11 recoveries 46.2067 298.03

298.03

Sub-Total

298.03

298.03

6.7 Others

6.7.1 Miscellaneous deposits 46.9667 37.22

83.21

Sub-Total

37.22

83.21

TOTAL

61837.94

55861.14

6.8 The balance of consumers security deposit held as per accounts and consumers

ledger accounts are subject to reconciliation.

6.9 Transaction with KPTCL / ESCOMs are accounted as payables are subject to

confirmation and reconciliation.

NOTE: 07 LONG TERM PROVISIONS (` In lakhs)

Sl. No. Particulars Account Code As At 31.3.2017 As At 31.3.2016

7.1 Provision

7.1.1 Provision For IT / FBT 46.8017,

46.8007 -

-

TOTAL

0.00

0.00

CURRENT LIABILITIES

NOTE: 08 SHORT TERM BORROWINGS (` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

8.1 Bank Overdraft

8.1.1 Secured by Receivables

8.1.2 State Bank of Mysore-OD 50.2107 19846.37

4157.85

8.1.3 From REC-Shortterm loan

` 100 Crs 53.3017 4166.67

TOTAL

24013.03

4157.85

12th



110

NOTE: 09 TRADE PAYABLES (` In lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

9.1 Liability For Purchase

Of Power

9.1.1 M/s KPCL 41.1087 114859.09

97179.93

9.1.2 M/s NTPC – RSTPS STG

I & II 41.1107 2602.32

756.71

9.1.3 M/s NTPC – RSTPS –

STG III 41.1117 524.70

236.18

9.1.4 M/s NTPC Talcher STG II 41.1127 1726.25

537.64

9.1.5 M/s MAPS 41.1137 103.76

-

9.1.6 M/s NLC - TPS I EXPN 41.1147 769.10

246.83

9.1.7 M/s NLC - TS II 41.1157 2333.10

610.93

9.1.8 M/s PGCIL -UI Pool

Account 41.1167 1537.05

1590.10

9.1.9 M/s Kaiga 41.1177 1818.04

4.05

9.1.10 M/s GMR ENERGY Ltd. 41.1187 -

-

9.1.11 M/s JSW PTCL 41.1217 3653.09

212.68

9.1.12 M/s Coromandel Sugars

Ltd 41.1237 13.09

136.71

9.1.13 M/s Hemavathi Power &

Light PVT. Ltd - II (HRB) 41.1337 2.52

-

9.1.14 M/s Sri Chamundeshwari

Sugars Ltd 41.1377 12.90

-

9.1.15 M/s KPTCL Transmission

Charges 41.1397 5549.67

3060.77

9.1.16 M/s PGCIL Transmission

Charges 41.1407 2961.73

1221.57

9.1.17 M/s SLDC - O & M

Expenses 41.1427 692.56

672.78

9.1.18 M/s SPPCC - O & M

Expenses 41.1437 51.25

-

9.1.19 M/s TBHE 41.1457 33.87

-

9.1.20 Energy Balance A/C -

BESCOM 41.1467 14356.95

4108.65


MESCOM 41.1477 2256.88

2575.17

9.1.22 M/s PTC India Ltd 41.1607 2585.03

289.71

12th



111


Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

9.1.23 M/s Lanco Utility Ltd

(Open Access) 41.1617 289.29

289.29

9.1.24 M/s Sapthagiri Distilleries

Pvt Ltd 41.1717 18.02

-

9.1.25 M/s The Chennai Silks 41.1757 -

13.94

9.1.26 M/s Happy Valley

Developers 41.1797 4.00

1.69

9.1.27 M/s Rathnagiri Impex Pvt

Ltd 41.1817 3.94

-

9.1.28 M/s Atria Brindavan

Power Ltd-2 MHS 41.1977 0.80

-

9.1.29 Provision for liability for

purchase of power 41.2007 103113.01

100906.40

9.1.30 M/s NTPC VVNL (IPP) 41.4017 148.69

-

9.1.31 M/s Friends Salt Works &

Allied Industries GP-16 41.4107 0.82

-

9.1.32 M/s Durga Agencies, GP-

19 41.4147 5.68

18.64

9.1.33 M/s UPCL 41.4187 6323.13

1901.66

9.1.34 M/s NTPC Simhadri

Thermal Power Station 41.4257 1170.47

471.35

9.1.35 M/s TATA power trading

company ltd (M/s TPTCL) 41.4267 5.40

1154.94

9.1.36 M/s Non PPA power

Generators 41.4307 71.80

39.21

9.1.37 M/s BMM ISPAT ltd., 41.4357 200.00

829.81

9.1.38 M/s NSL Sugars

(Tungabhadra) Ltd., 41.4387 40.33

89.63

9.1.39 M/s Vijayanagara Sugars 41.4407 8.00

-

9.1.40

M/s NTPC Tamilnadu

Energy Company Ltd

(Vallur TPS)

41.4417 1562.98

-

9.1.41 M/s Sathish Sugars Ltd., 41.4477 -

111.34

9.1.42 M/s Sai Nireeha Power

Project Pvt Ltd. 41.4497 6.83

0.39

12th



112


Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

9.1.43 M/s Kudankulam Nuclear

Power Project 41.4517 653.20

64.81

9.1.44 M/s NTPC-VVNL (Solar) 41.4527 557.21

-

9.1.45 M/s Priyadarshni Jurala

Hydro Electric Scheme) 41.4537 108.61

513.64

9.1.46 M/s Athani Sugars Ltd 41.4547 -

135.85

9.1.47 M/s Nirani Sugars Ltd 41.4557 48.80

126.56

9.1.48 M/s NLC - TPS II Exp 41.4577 625.74

24.93

9.1.49 M/s NLC Tamilnadu

Power Ltd 41.4587 1813.59

-

9.1.50

M/s Madhav Solar

(Karnataka) Pvt. Ltd

(Project-1)

41.4607 59.94

58.81

9.1.51

M/s Madhav Solar


(Project-2)

41.4617 62.34

61.01

9.1.52 M/s Mittal Prosessors Pvt

Ltd 41.4627 102.58

351.68

9.1.53 M/s Balkeshwara Sugars

Ltd 41.4637 8.66

43.23

9.1.54 Purchase of power from

IPPs under section 11 41.4647 1747.63

5790.30

9.1.55 M/s Damodar Valley

Corporation 41.4657 3424.67

-

9.1.56 M/s Emami Power Limited

(Solar) 41.4667 126.45

-

9.1.57 M/s Chikku Energy Private

ltd (Solar) 41.4677 45.06

-

9.1.58 M/s CBM Enterprises

(Solar) 41.4687 45.21

-

9.1.59

M/s Maharastra State

Electricity Distribution

Company Ltd

41.4697 1238.91

-

9.1.60 M/s Core Green Sugar &

Fuels Pvt Ltd 41.4707 14.67

-

9.1.61 M/s E.I.D Parry (India) Ltd 41.4717 38.62

-

12th



113


Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

9.1.62 M/s GEM Sugar Ltd 41.4737 43.32

-

9.1.63 M/s Godavari Bio

Refineries Ltd 41.4747 99.96

-

9.1.64 M/s Jamkhandi Sugars

Ltd 41.4757 59.87

-

9.1.65 M/s KPR Sugar Mills Pvt

Ltd 41.4767 34.90

-

9.1.66 M/s Manali Sugars 41.4777 1.52

-

9.1.67 M/s Shiraguppi Sugar

Works Ltd 41.4787 7.31

-

9.1.68 M/s Sri Prabhulineshwar

Sugars & Chemicals 41.4797 38.42

-

9.1.69 M/s Shivashakthi Sugars

Ltd 41.4807 38.05

-

9.1.70 M/s Shree Renuka Sugars

Ltd 41.4817 19.12

-

9.1.71 M/s Soubhagyalakxmi

Sugars Ltd 41.4827 3.91

-

9.1.72 M/s Saketh Solar Energy

LLp Ltd (Solar) 41.4837 38.16

-

9.1.73 M/s Gorich Energy Pvt Ltd

(Solar) 41.4847 15.11

-

9.1.74 M/s A.V. Anjaneya Prasad

(Solar) 41.4857 9.21

-

9.1.75 M/s SLDC, KPTCL

(Congestion Charges) 41.4937 2.62

-

9.1.76

Liability for Purchase of

Power from Solar Roof

Top

41.5007 3.99

0.96

9.1.77 Payable to BESCOM -

Power Purchase 42.2907 4240.04

5106.29

9.1.78 Payable to MESCOM-


7.00

TOTAL

286800.53 231553.78

9.2 Balances in respect of Trade Payables are subjected to confirmation

9.3 Dues to MSME :- Nil

12th



114

NOTE 10: OTHER CURRENT LIABILITIES (` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

10.1 Current Maturities of

Long Term Debts

10.1.1

Term Loan Installment

due for repayment within

One year

10.1.1.1

Loans installment due to

Commercial Banks 53.5077 2349.95

3766.26

10.1.1.2 Loans installment due GOK

Loan Energisation of IP 53.9777 -

23.30

10.1.1.3 From REC - Shorterm loan

`100 Crs 53.3017 -

-

10.1.1.4 Loans installment due to

GOK APDRP 53.3047 214.53

214.53

10.1.1.5 Loans installment due to

REC APDRP 53.3057 0.00

863.31

10.1.1.6 Loan installment due to

REC RGGVY 53.9677 181.90

181.90

10.1.1.7 Loan from Syndicate Bank 53.5007 500.00

0.00

10.1.1.8

Loan installment due to

PFC (APDRP) Part B

Counter Part Loan

53.5097 389.09

358.34

10.1.1.9

Loan installement due to

PFC (APDRP) Part B

Counter part loan

53.9617 0.00

0.00

10.1.1.10 Loan Installement due to

REC NJY Loan 53.5107 4720.09

623.25

10.1.1.11

Loan Installement due to

Syndicate Bank for CAPEX

FY 14-15

53.5037 1666.67

1666.67

10.1.1.12 From SBM Bank Short

Term Loan - PP Dues 53.5047 3336.00

2900.00

10.1.1.13 From SBM Bank Short

Term Loan - PP Dues 53.5047 3336.00

3336.00

10.1.1.14 REC (M.T.L) 53.5057 3055.56

3333.33

10.1.1.15 State Bank of Mysore

(S.T.L) 53.5067 5088.34

5550.92

10.1.1.16 Syndicate Bank (S.T.L) 53.5077 0.00

7017.86

10.1.1.17 From REC (Short Term) 53.5117 6666.67

0.00

12th



115


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

10.1.1.18 From Bank of India

(Capex) 53.5127 2000.00

0.00

Sub-Total

33504.78

29835.67

10.2 Interest Accrued but not

due on Borrowings

10.2.1

Interest Accrued but not

due on Borrowings 46.7107 2802.49 2802.49 2776.03 2776.03

10.3 Other Payables

10.3.1 Liability for supply of

Materials 42.1017 2269.07

2863.64

10.3.2 Sundry creditors/Control

Account 42.2017 1374.77

1268.43

10.3.3 Liability for supply of

materials 42.3017 -

-

10.3.4 Contractors Control

Account

42.4017

42.7017 7837.72

6993.16

10.3.5 Liability to Contractors 42.5017 591.97

624.73

Sub-Total

12073.54

11749.95

10.4 Statutory Dues

10.4.1

Income tax deducted at

source on payment to

Contractors

46.9247 104.99

152.17

10.4.2

Sales tax deducted at

source and payable to

department

46.9277 22.70

186.63

10.4.3 Sales tax payable 46.9267+

46.9517 2.15

(1.24)

10.4.4 Service Tax 46.9217 12.47

70.47

10.4.5 Amount recoverable from

Salaries of Corpn. Emp 46.9287 0.60

6.47

10.4.6

Swachh Bharath Cess

0.5% on value of services&

Krishi Kalyan CESS 0.5%

on value of services

46.9297 1.13

2.45

10.4.7

Amount Deducted from

Contractors PF ESI and

cess

46.9307+

46.9317+

46.9327

1.18

3.96

12th



116


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

10.4.8

Building or other

construction workers

welfare fund

46.9427+

46.6427 1.88

8.19

10.4.9 Duty & Taxes Payable to

GoK., 46.4707 0.38

0.68

Sub-Total

147.47

429.77

10.5 Employee related

liabilities

10.5.1 Liability towards Pension &

Gratuity Trust

44.1107+

44.1207+

44.1227

2255.80

2262.58

10.5.2 Liability towards FBF

44.1417+

44.1427+

44.1437

708.66

675.72

10.5.3

Liability towards

contribution to Newly

defined Contributory

Pension scheme

44.1507 6.60

1.32

10.5.4

Pension and Leave

contribution from employees

for counting their past

service in other dept., &

payable to P & G Trust

44.2757 0.03

0.03

10.5.5 Unpaid Salaries 44.2107 0.03

0.18

10.5.6 Unpaid Bonus 44.2207 0.10

0.06

10.5.7 Salary Payable 44.3107 346.56

26.19

10.5.8 Bonus Payable 44.3207 62.04

57.04

10.5.9 Ex-gratia Payable 44.3307 331.34

492.64

10.5.10 Sundry expenses 46.4107 100.28

93.10

10.5.11 For T.A to Contract

employees 46.4117 1.00

0.50

Sub-Total

3812.43

3609.35

10.6 Payables to GOK

10.6.1 Electricity Tax(yet to be

collected from consumers) 46.3007 4486.62

3933.89

10.6.2 Compounding Fee 46.3017 0.61

3.28

12th



117


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

10.6.3 Inspection Charges

payable to Govt. 46.4407 0.12

0.11

10.6.4 Royalty payable to Govt. 46.4507 0.66

1.12

Sub-Total

4488.01

3938.40

10.7 Payables to Consumers

10.7.1 Interest on ISD/ASD 48.3407 3627.73

3482.06

10.7.2 Interest on MSD 48.3507 183.29

325.64

Sub-Total

3811.02

3807.71

10.8 Others

10.8.1 Security Deposits in cash

from Suppliers/ Contractors

46.1017+

46.1027 655.84

264.37

10.8.2 Retention Money 46.1047 4787.40

2853.60

10.8.3 Penalty recovered, pending

decision for refund 46.1097 231.66

97.43

10.8.4 Liability for expenses 46.4307 2175.98

2684.32

10.8.5 Stale Cheques 46.9107 12.77

14.56

10.8.6 Advance received for sale

of store scrap etc., 46.9227 99.96

4.02

10.8.7 CFL Lamps issued under

BELAKU YOJANE 47.5007 276.83

234.68

10.8.8 Contributory Pension

scheme

46.9537

46.9527 201.56

113.14

10.8.9

Amount recoverable from

employee payable to

Employee Welfare Fund

46.9547 65.68

64.82

10.8.10

Employees PF and

Departmental Share of PF

Payable Account

46.9577 1.77

1.75

10.8.11

Excess Credit afforded by

Bank pending

reconciliation-SBM

46.9717 82.99

11.53

10.8.12


Bank pending

reconciliation-Canara Bank

46.9747 6.06

0.15

10.8.13 Flood Relief fund 47.9787 0.01

0.01

12th



118


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

10.8.14 Electrification/ Service

Connection

47.3017

to

47.3047

457.50

432.22

10.8.15

Amount payable to other

departments against DCW

works

47.3

series 4783.54

3994.84

10.8.16 Revenue Suspense 47.6077 692.63

564.82

10.8.17 Revenue collection

pending classification 47.6097 143.87

0.00

10.8.18 Stock Excess pending

investigation 22.8207 3.40

3.40

10.8.19 Receivable others - Belaku

Yojane 28.8847 17.76

25.61

10.8.20

Advance Paid to SPPCC

towards UI Charges

(Unscheduled interchange

charges)

28.9457 -

-

10.8.21 Sundry debtors for other

Misc income 28.1057 130.99

1154.00


Ex-employees 28.4027 1.59

1.90

10.8.23 Claims for loss / damage to

capital assets - suppliers 28.7457 -

0.92

10.8.24 Inter Unit Accounts(Net) 31 to 37 23650.83 23651.45

Sub-Total

38480.62

36173.55

TOTAL

99120.36

92320.43

10.9 A sum of ` 224.77 crores were included in IUA balances which was transferred

from MESCOM in opening Balance Sheet.

10.10 Some of the issues accounted, which requires GOK approval for altering the

networth transfers. All efforts will be made to clear the accounting entry duly

consulting MESCOM and KPTCL since triangular transfers are involved.

NOTE: 11 SHORT TERM PROVISIONS (` In lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

11.1 Provision for Income Tax 46.8017 588.99 -

TOTAL

588.99

-

12th



119

NOTE 12: TANGIBLE A S S E T S

(` in Lakhs)

Gross Block Depreciation Net Block

Assest Group A/C

Head As at

31-03-2016 Additions Deductions

As at 31-03-2017

As at 31-03-2016

Additions Deductions As at

31-03-2017 As at

31-03-2016 As at

31-03-2017

Land-Free hold 10.1 245.12 95.94 0.00 341.06 0.00 0.00 0.00 0.00 245.12 341.06

Land Held Under Lease

10.1 40.32 0.00 0.00 40.32 8.62 1.32 0.00 9.94 31.70 30.38

Buildings 10.2 7053.80 786.70 0.00 7840.50 1318.28 259.74 0.00 1578.01 5735.52 6262.49

Hydraulic Works 10.3 193.01 51.35 0.00 244.36 61.31 12.91 0.00 74.22 131.70 170.14

Other Civil Works 10.4 71.67 25.75 0.00 97.41 19.30 2.88 -0.02 22.20 52.37 75.21

Plant & Machinery 10.5 56173.51 19363.32 6945.64 68591.19 8110.45 3769.01 1015.81 10863.66 48063.06 57727.53

Computers 10.5 1342.56 315.21 184.74 1473.02 681.73 223.56 89.51 815.78 660.83 657.24

Lines Cable Networks

10.6 192678.69 40762.23 1620.29 231820.62 59737.39 11177.87 1149.17 69766.09 132941.29 162054.53

Vehicles 10.7 437.75 0.00 4.93 432.82 322.18 14.27 4.43 332.01 115.57 100.81

Furniture & Fixtures

10.8 422.69 805.43 37.26 1190.86 206.82 27.48 13.23 221.07 215.87 969.79

Office Equipements

10.9 956.35 112.73 47.36 1021.72 155.85 64.65 10.08 210.42 800.50 811.30

Tangible Assets Total 2016-17

259615.45 62318.65 8840.21 313093.89 70621.92 15553.69 2282.22 83893.40 188993.53 229200.49

Tangible Assets Total 2015-16

201569.49 67373.56 9327.60 259615.45 60190.08 12830.75 2398.90 70621.92 141379.42 188993.53

NOTE 13: INTABGIBLE A S S E T S

Intangible Assets (Software) 16-17

18.10 216.81 800.51 1.01 1016.31 213.50 287.64 0.00 501.14 3.31 515.17

Intangible Assets (Software) 15-16

18.10 216.81 0.00 0.00 216.81 213.50 0.00 0.00 213.50 3.31 3.31

Note:- The fixed assets are capitalised on receipt of Commissioning reports from the designated authority concerned of the company and the depreciation is charged from the date of Commissioning in the books of accounts.

12th



120

13.1 METHOD OF ACCOUNTING

13.2 The Financial statements are prepared under Historical Cost convention, in

accordance with the provisions of the Companies Act 2013, and also as per the

provisions of Electricity (Supply) Act 1948, / Electricity Act 2003, in cases of

inconsistency with the Companies Act 2013.

13.3 FIXED ASSETS

13.3.1 Fixed assets acquired / constructed are valued at actual cost of

acquisition / construction or at standard rate as the case may be, during the

current year.

13.3.2 Assets transferred by M/s. Karnataka Power Transmission Corporation Ltd,

(KPTCL) at the time of transfer of Assets ` 566.77 Cr have been stated at the

cost of transfer indicated by KPTCL in document.

13.3.3 In respect of Assets shared with KPTCL, the ownership and title vests with

KPTCL and as such, they are not reflected in the books of accounts of the

Corporation. But the share of maintenance expenditure in respect of such

assets is charged to Profit & Loss account and the accounts system was not

enabled to monitor the same.

13.3.4 Grants / subsidies received from the government or other authorities towards

capital expenditure as well as consumers contribution to capital works are

treated initially as capital reserve and subsequently adjusted as income in the

same proportion as the depreciation written off on the assets acquired out of the

grants.

13.3.5 The Corporation is in the process of transferring the titles of immovable assets

that was transferred by KPTCL. Out of 182 Properties, 148 Nos have been

transferred in the name of CESC for remaining 34 properties details annexed.

13.3.6 The Transformers released during the year are removed from assets account

only when they are sent to stores.

13.3.7 The Fixed Assets are accounted as per Government of Karnataka Notification

No. EN 08 PSR 2005 dated 05.06.2006 and EN/08/PSR/2005/11.05.2007

containing the intimation of Cost of assets and accumulated depreciation.

Further depreciation has been provided on such assets as per CERC

guidelines.

13.3.8 As per arms length agreement between KPTCL and the Corporation, certain

Facilities and buildings owned either by KPTCL or by the Corporation is being

utilized by both. The income and expenditure has not been recognized and

provided for in respect of such shared assets.

13.3.9 The Corporation accounts,

12th



121

13.3.10 The released assets at written down value and such assets when issued for

Capital works are categorized on completion of such works and in usable

condition at written down value, and

13.3.11 The released assets that are not in usable condition treated as obsolete assets

at written down value and included in other current assets.

13.3.12 Insuring fixed Assets:-

Providing insurance on fixed assets involves huge expenditure and it is not

economical, therefore fixed assets have not been insured.

Sl.

No.

Name of Division

where accounted

Details of Immovable

property

Asset in the

name of

1 N.R.Mohalla, Mysore

Kadakola LM Camp KEB

2 Ayyarahally LM Camp KEB

3

Nanjanagudu

Hullahally LM Camp KEB

4 Muguru LM Camp No title deeds

available

5 Bettahally LM Camp KEB

6

Hunsur

Hunsur Sub-division KEB

7 Kattemalalavadi KEB

8 Periyapatna Sub-division KEB

9 K R Nagar Collection Center KEB

10 Basavarajapura Camp No documents

available

11 Saraguru Section Office KEB

12 Saraguru quarters colony KEB

13

Chamarajanagara

Harave MUSS KEB

14 Chandakavadi Section office

33kv MUSS

KEB

15

Kollegala

Malemahadeshwara Hills LM

Camp

KEB

16 Kinakanahally LM Camp No title deeds

available

17

Madikeri

Shanthinikethan KEB

18 MUSS Colony, Madikeri MUSS

19 Madikeri Sub-division Office Chairman,

Indian

Corporation &

Indian Union

12th



122

20 Somawarapete Section office Govt Property

21 Hanagalu Shettally KEB

22 Koodige Govt.

23 Shrimangala Section office KEB

24 Virajapete Section office MUSS

25

Mandya

Tubinakere LM Camp KEB

26 Hulikere LM Camp In the name of

Govt. School

27 Maddur

Ravani LM Camp KEB

28 Kiragavalu Section office KEB

29 Pandavapura

Hangarahally LM Camp KPTCL

30 Bidarahally LM Camp KEB

31 Hassan

Old Electricity Colony (OEC) KEB

32 Dudda Section office KPTCL

33

Holenarasipura

Hally Mysore KEB

34 Bachenahally Land is not

available

NOTE: 14 CAPITAL WORKS IN PROGRESS

(` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

14.1 Capital Works in

Progress

14

Series 15615.21

16690.19

14.2 Provision for Completed

works

15

Series 1225.06

658.05

14.3 Turnkey Contractors

Control Account 26.6057 9178.75

8826.11

TOTAL

26019.02

26174.35

NOTE: 15 INTANGIBLE ASSETS UNDER DEVELOPMENT (` In lakhs)

Sl. No. Particulars Account

Code As At 31.3.2017 As At 31.3.2016

15 CWIP-MMS 14.1727 351.20 0.00

TOTAL

351.20

0.00

12th



123

NOTE: 16 NON-CURRENT INVESTMENTS (` In lakhs)

Sl. No Particulars Account

Code As At 31.3.2017

As At

31.3.2016

16.1 Investments:-

16.1.1 Long Term Investments-

(Un-Quoted at cost :- Trade

16.1.1.1 Investment in Equity

Instrument

Investment in share capital of

Power Company of

Karnataka Limited (25100

eq.sh. of ` 1000 each)

20.2717,

27.8117

251.00 251.00 251.00 251.00

TOTAL 251.00 251.00

NOTE: 17 - DEFERRED TAX ASSETS (NET) (` In lakhs)

Sl.

No Particulars Account Code As At 31.3.2017 As At 31.3.2016

17.1 Deffered Tax Asset 28.9507 NIL

TOTAL - NIL

NOTE: 18 LONG TERM LOANS AND ADVANCES (` In lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

Secured, considred good

18.1

Advance / seed capital

amount paid to Power

Company of Karnataka

limited

27.8017 -

4.69

TOTAL

0.00

4.69

NOTE: 19 -OTHER NON CURRENT ASSETS

(` In lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

Secured, considred

good

19.1

Receivables from KPCL,

KPTCL and Other

ESCOMs

12th



124


(` In lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

19.1.1 KPTCL / VVNL

28.8267+

28.8317+

28.8367+

28.8417+

28.8817+

28.8487

3874.37

3575.21

19.1.2 MESCOM

28.8437+

28.8287+

28.7656+

28.7657+

28.8787

1900.35

1900.35

19.1.3 HESCOM 28.8397+

28.8837 720.19

720.19

19.1.4 BESCOM

28.8277+

28.8377+

28.8427+

28.8827

8.01

8.07

Sub-Total

6502.93

6203.82

19.2 Other Receivables

19.2.1 Income tax / FBT 28.8216+

28.8217 67.22

19.2.2 Deposit With Railways 28.9337 1.01

1.01

19.2.3 Deposit with Others 28.9357 2893.29

2519.35

19.2.4 Claims for loss / Damage

to materials - others 28.7297 0.29

4.71

19.2.5 Claims for loss / Damage

to capital assets - others 28.7497 10.22

6.77

19.2.6 Regulatory Asset -

KERC 28.9817 98244.60

34405.00

19.2.7 Ganga Kalyana Scheme

Deposit receivable 47.3077 64.40

63.99

19.2.8

GK Scheme Deposit

received for Backward

Classes

47.3087 3107.03

2106.04

12th



125


(` In lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

19.2.9 GK Scheme Deposit

receivable from KMDC 47.3097 880.72

594.73

19.2.10

GK Scheme Deposit

receivable from

Karnataka State SC/ST

47.3107 4731.19

2536.94

19.2.11 RGRHLL / Ashraya /

Ambedkar Scheme 47.3157 156.52

134.57

19.2.12 Energisation of Rural WS

Scheme under RDPR 47.3167 1118.79

967.85

19.2.13

Deposit contribution

works deposit received

from Government under

SCSP

47.3177 1578.20

1331.49

19.2.14



from Government under

SDP

47.3187 1871.49

838.46

19.2.15



from Govt. under TSP

47.3197 402.22

356.93

19.2.16

GK Scheme deposit

received for Backward

Classes

47.3577 5.19

2.58

19.2.17 CFL Lamps Received for

BELAKU YOJANE 47.4007 287.94

253.63

19.2.18

Deposit Contribution


from government under

Roof Top Grid Connected

Solar Photovoltaic system

47.7007 161.80

Sub-Total

115514.90

46191.26

TOTAL

122017.83

52395.08

12th



126

19.3 Under A/c 28.9187, the regulatory asset recognized on amounts allowed in tariff

order of subsequent period and towards the provisional gap expected to be

considered by KERC for recovery in subsequent years as on 31.03.2017 is as

follows:

Non Current Asset - `982.44 Crs (Previous year : `344.05 Crs)

Other Current Asset - Nil (Previous year : `120.41 Crs)

19.4 Transaction with KPTCL / ESCOMs are accounted as receivables are subject to

confirmation and reconciliation

NOTE: 20 CURRENT INVESTMENTS

(` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

20.1 Current investments NIL

TOTAL - -

NOTE: 21 INVENTORIES, STORES AND SPARES (` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

21.1 Materials Stock Account

21.1.1 Materials Stock Account 22.6107 4965.36

6704.53

21.1.2 Material imprest Account 22.6417 3.48

3.48

21.1.3 Materials pending

inspection 22.6607 -

-

21.1.4 Other Materials Account

22.6807+

22.7207+

22.7307+

22.7317+

22.7607

6.22

16.92

21.1.5 Stock Shortage pending

investigation 22.8207 106.45

106.45

Sub Total

5081.52

6831.39

TOTAL

5081.52

6831.39

21.2 (a) Upto 2016, inventories are valued at Standard Rate, which is determined by

Corporation from time to time based on previous purchase price and prevailing

market rates (published as O & M Schedule of Rates). The difference in actual

cost of material received and standard issue rate represents “Material cost

12th



127

Variance”. At the end of the year debit balance if any, under “Material Cost

Variance” is charged to Profit & Loss A/c and credit balance if any is transferred to

reserve called Reserve from Material Cost Variance”. With implementation of AS-2

from 01.04.2016 the balance under Material cost variance reserve account has

been transferred to income account.

21.2(b) Inventories - Stores and spares are valued at lower of cost determined on weighted

average basis and net realizable value wherever applicable. Net Realizable value is

the estimated selling price less estimated costs necessary to make sale.

21.2(c) In respect of the materials identified as scrap / obsolete by the competent authorities,

the value of such materials shall be accounted at scrap rate or reduced by 90% of

the existing value and 10% value shall be retained as the value of scrap / obsolete

materials till its disposal.

NOTE: 22 TRADE RECEIVABLES (` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

22.1 TRADE RECEIVABLES

22.1.1 For sale of Power-LT,

HT & Others 23.1 50031.97

80549.06

22.1.2 For sale of Power-HT &

Others 23.2 4943.43

5496.06

22.1.3 For sale of Power-Fuel

Adjustment Cost 23.2917 358.07

394.17

22.1.4 For sale of Power-

Electricity Tax

23.3017,

23.3027 4099.23

4271.81

22.1.5 Unbilled Revenue 23.4 19035.78

17487.44

22.1.6 Misc Receipts from

Consumer 23.7 39245.59

60581.04

22.1.7

Subsidy receivable from

GOK towards BJ / KJ

waiver amount and

additional subsidy

28.6257 21943.88

12874.88

22.1.8 Subsidy receivable from

GOK towards BJ / KJ 28.6267 250.53

0.00

22.1.9

Amount receivable from

State Govt. towards free

supply of Power to IP

sets up to 10HP

28.6277 30328.71

5439.89

12th



128

NOTE: 22 TRADE RECEIVABLES (` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

22.1.10 Receivable from PCKL 28.9197 51630.83 221868.03

187094.35

Less:

22.1.11 Provision for withdrawal

of Revenue Demand 23.8 137.80

157.97

22.1.12

Provision for Doubtful

Dues from consumers

(Credit Account)

23.9 5698.38 5836.18 5694.61 5852.59

Net Receivables against

Supply of Power 216031.85

181241.76

TOTAL

216031.85

181241.76

22.2

Outstanding for less than

6 months & considered

good

125017.18

104836.43

22.3

Outstanding for more

than 6 months &

considered good

96850.85

82257.92

22.4 As per KERC Bangalore, Notification No: D/07/7 Dated 01.10.2007, KERC

(Security Deposit) Regulations, 2007 Notified in Karnataka Gazette Dated

11.10.2007, Company is collecting additional security deposit collected till

deposit held at credit falls short of average bill amount corresponding to

2 Months (2MMD) and at the end of FY-16 the company is having

` 52115.50 lakhs (PY ` 46947.64) as Security Deposit. The receivables to the

extent of `5698.38 lakhs (PY ` 5694.61) is considered as bad & doubtfull debts

& provided for in accounts. The balance Trade receivables can be recovered by

enforcing rule of Disconnection, for the disconnected installations, by enforcing

Recoveries of Dues Act- 1976- treating the arrears as Arrears of Land Revenue,

wherever applicable.

22.5 In the account head 23.9, i.e. Provisions for bad & doubtful debts a sum of

` 3235 lakhs is also continued which is transferred from MESCOM.

22.6 Trade receivable includes the arrears of IP consumers below 10HP prior to

31.07.2008 is as below

12th



129

(` in lakhs)

Particulars Principal Interest Total

Closing Balance as on 31.07.2008 33158 10478 43636

Closing Balance as on 31.03.2017 31126 37197 68323

No Interest has been recognized on dues of IP sets consumers below 10HP

from the year 2014-15

22.7 Pursuant to the scheme of securitization of receivables from Gram Panchayat

vide GOK order no EN 3 PSR 2016/P-3 Dated 31.03.2017 in favour of M/s

Power Corporation of Karnataka limited (PCKL) in respect of all ESCOMs, the

Company had initiated action to transfer its debts outstanding from Gram

Panchayats as at 31st March 2015 amounting to ` 516.31 Crores. Since the

debts to be assigned / transferred in favour of M/s. PCKL are to be

unencumbered, the Company had taken steps to release the encumbrance with

their lenders and upon release of such encumbrance the debts will be assigned

and transferred to M/s. PCKL in the ensuring year. Pending completion of

formalities relating to encumbrance the debts owned by Gram Panchayats are

shown under A/c head 28.9197 i.e Receivable from M/s. PCKL. Further, in

compliance with the GOK Order, the interest charged on these receivables for

the year 2015-16 amounting to `47.09 crores is written off and interest has not

been charged during the year 2016-17.

NOTE: 23 CASH AND BANK BALANCES (` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

23.1 Balances with Banks

23.1.1 Collecting Bank Accounts

(Non-Operative) 24.3 786.04 786.04 815.18 815.18

23.1.2 Disbursement Bank Account

(Operative)

23.1.3

Disbursement Bank (Operative)

Account - State Bank of Mysore

(E-A/C)

24.4117 15.44

121.28

23.1.4


Account - State Bank of Mysore

(CA-P&G Trust A/C)

24.4117 0.13

177.55

23.1.5 Disbursement Bank (Operative)

Account - State Bank of Mysore 24.4117 3191.04

970.32

12th



130


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016


Account - Canara Bank 24.4147 148.43

102.80

23.1.7


Account - SBM (D.S.R.A) A/c

(7156)

24.4117 0.09

0.00

23.1.8


Account - SBM (I.P.D.S) A/c

(64186438626)

24.4117 1016.23

0.00

23.1.9


Account - SBM (DDUGJY) A/c

(64186437178)

24.4117 1673.04

0.00

23.1.10


Account - Canara Bank (F.D) -

665

21.4147 9.30

0.00


Account - Syndicate Bank 24.4157 2184.43

9.56

23.1.12


Account - Syndicate Bank (A/c

No 1991) (CLTD)

24.4157 0.02

0.00

23.1.13


Account - Bank of India A/c No:

844920110000073)

24.4217 59.10

0.00


Account - Vijaya Bank 24.4097 872.25

879.78

23.1.15


Account - Vijaya Bank (F.D)-

854

24.4097 0.94

0.00


Account - Vijaya Bank-211 24.4097 2.13

0.00


Account - State Bank of Mysore 24.4017 1542.89

101.30


Account - Canara Bank 24.4047 15.10

1.49


Account - Syndicate Bank 24.4057 6.88

13.37

12th



131


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016


Account - Corporation Bank 24.4307 -

0.53

23.1.21

Disbursement Bank -

(Operative) Account - IDBI

BANK

24.4317 0.23

15.78

23.1.22

Disbursement Bank -

(Operative) Account - IDBI

BANK - 34539

24.4317 353.73

0.00

23.1.23

Disbursement Bank -

(Operative) Account -

CORPORATION BANK

24.4327 299.58

77.25


Axis Bank Limited 24.4337 7.33

44.61


ICICI Bank (A/c No 11056) 24.4347 10.72

0.61

Sub-Total

11409.03

2516.22

23.2.1 Cash on Hand 24.1107 143.46

579.19

23.2.2 Cheques / drafts on hand 24.1107 1863.28

164.89

23.3 Imprest with staff 24.2107 5.67 2012.40 5.38 749.46

23.4 Others

23.4.1 Postage stamps on hand 24.1207 1.24

1.11

23.4.2 Remittance to Head Office-

Transit Account 24.5017 24.20

2.71

23.4.3 Transfers from Head Office in

Transit Accounts

24.6

series 860.14 885.59 10806.20 10810.03

23.5 Fixed deposits in Banks

23.5.1 Short term deposits

23.5.2 Cash and Cash Equivalent

(Short term deposits) 20.2807 1510.61 16603.67 3434.77 18325.66

Other Bank Balances

Deposits provided as margin

money for letter of credit 20.2807 125.26 125.26 853.34 853.34

TOTAL

16728.92 19178.99

12th



132

(` In Lakhs)

Deposit FY17 FY16

Maturity less than 3 months 14.38 159.00

Maturity :- 3 months to 12 months 1621.48 4129.11

Maturity :- more than 12 months 0.00 0.00

Total 1635.86 4288.11

# Entry passed for IP / BJ & KJ subsidy ordered by GOK to an extent of `10775 lakhs during

March-2016.

NOTE: 24 SHORT TERM LOANS AND ADVANCES

(` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

24.1 Capital Advance

Un-secured

considered good

24.1.1 Advance to Suppliers

and Contractors

24.1.1.1 Advances to Suppliers 25.5017 0.00

132.86

24.1.1.2 Advances to

Contractors

26.6027

26.6037 6590.85

12380.83

Sub-Total

6590.85

12513.69

24.2 Other Loans and

Advances

24.2.1 Un-Secured

considered good

24.2.2.1

Loans and advance

to Staff-Interest

bearing

24.2.2.2 Advance of Pay 27.2017 0.00

0.00

24.2.2.3 Travel advance 27.2027 1.53

3.43

24.2.2.4 Festival advance 27.2037 70.47

52.95

24.2.2.5 Medical advance 27.2047 43.49

37.58

24.2.2.6 Advance to staff

against expenses 27.2057 21.91

114.29

24.2.2.7 Other Loans and

Advances 27.8007 0.20

15.20

Sub-Total

137.62

223.44

TOTAL

6728.46

12737.14

12th



133

NOTE: 25 OTHER CURRENT ASSETS (` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

25.1 Sale of Store 28.1037 &

28.1047 0.00

0.26

25.2

Income accrued and dues

others (Bank Deposits &

rebate on power purchase)

28.3907 619.59

194.28

25.3 Recoverable from GOK

25.3.1 Revenue Subsidy/Grant

receivable

28.6107 &

28.6117 1862.73

1862.73

Sub-Total

2482.32

2057.27

25.4 Recoverable from Employees

25.4.1 Penalties recoverable from

GAM-K 28.1067 0.00

0.00


Employees 28.4017 151.54

6.09


Ex-employees 28.4027 0.00

0.00

25.4.4 Cash found short due to theft

etc., pending Investigation 28.4037 0.24

0.24

25.4.5 Material drawn by Executive

Sub-Ordinates 28.4047 3.36

3.36


employees-material related 28.4097 137.13

61.88

Sub-Total

292.27

71.57

25.5 Others

25.5.1 Receivable others - Belaku

Yojane 28.1057 0.00

0.00

25.5.2 GOK Department 28.1107 74.18

165.58

25.5.3

Sundry debtors - deposit from

contribution works dasara

festival

28.1217 0.00

0.00

25.5.4 Expenses recoverable from

Suppliers 28.8107 71.20

38.11

25.5.5 Prepaid Expenses 28.8207 173.18

8.82

25.5.6 Advance Tax Paid (TDS) 28.8217 0.00

0.00

12th



134


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

25.5.7 Receivables others 28.8987 81.95

116.26

25.5.8 Regulatory Asset - KERC 28.9187 0.00

12041.00

25.5.9 Securities from suppliers 28.9307 0.00

0.00

25.5.10 Amount receivable from P&G

Trust 28.9077 25.21

3.81

25.5.11 Receivable from beneficieries

of Solar Lanterns 28.1257 11.54

5.30

25.5.12 Provisional bill paid to NTPC

rebate scheme 28.9497 0.00

0.00

25.5.13 Amount Receivable in cash

from BESCOM 28.8827 12082.00

0.00

25.5.14 Receivable from BESCOM -


0.00

25.5.15 Receivable from MESCOM -


0.00

25.5.16 Receivable from HESCOM-


149.00

25.5.17 Receivable from GESCOM-


2162.00

25.5.18

Transformers/meters

etc.,Issued to Contractors /

Suppliers for repairs

26.6047 890.07

1228.56

25.5.19

Transformers/meters etc.

issued to repairs for Board

Personnel

27.2107 111.71

184.54

25.5.20 Receivable from PCKL 28.9197 0.00

0.00

25.5.21

Advance Paid to SPPCC

towards UI Charges

(Unsheduled Interchange

Charges)

28.9457 0.00

0.00

25.5.22 Written down value (WDV) of

obsolete/Scrapped assets.

16.1

Series 814.85

757.54

25.5.23 Written down value (WDV) of

Faulty/Dismantled Assets

16.2

Series 2003.58

1753.08

25.5.24 M/s MAPS 41.1137 0.00

0.00

25.5.25 M/s EDCL 41.1287 0.00

8.38

25.5.26 M/s Vijayalakshmi Hydro 41.1297 0.19

0.00

12th



135


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

25.5.27 M/s Hemavathi Power & Light

Pvt. Ltd.,-1 (HLBC) 41.1327 0.00

16.30

25.5.28 M/s Hemavathi Power & Light

Pvt. Ltd.,-11 (HRB) 41.1337 0.00

5.51

25.5.29 M/s Trishul Power Pvt Ltd 41.1347 0.02

0.00


HESCOM 41.1487 4575.03

7675.47


GESCOM 41.1497 5220.79

8374.80

25.5.32 M/s Venika Green Power 41.1627 0.00

3.36

25.5.33 M/s BPCL (Manjadka) 41.1927 0.30

0.00

25.5.34

For Purchase of power High

cost power procured by PCKL

on behalf of CESC

41.2677 58.88

321.36

25.5.35 For purchase of power from

M/S POSOCO-SRLDC 41.4277 43.61

2.63

25.5.36 M/s Avon GP-09 41.4057 0.00

46.97

25.5.37 M/s Savitha Chemicals - H26 41.4067 0.00

50.24

25.5.38 M/s Savitha Chemicals - H32 41.4077 0.00

52.59


Project Pvt.Ltd., 41.4497 0.00

0.00

25.5.40 M/s Athani Sugars Ltd., 41.4547 7.42

0.00

25.5.41 M/s SLDC, KPTCL (Reactive

Energy Charges) 41.4947 13.58

0.00

25.5.42 M/s PCKL (Reactive Energy

Charges - Inter State) 41.4957 39.36

0.00

25.5.43 M/s Flax Hydro Energy

Pvt.Ltd., 41.4507 0.00

1.87

25.5.44 IT deducted at source on

other payments 46.9257 10.83

0.00

25.5.45 Excess Credit afforded by Bank

pending reconciliation-SBM 46.9717 0.00

0.00

25.5.46 Salary Payable 44.3107 0.00

0.00

25.5.47


Bank pending reconciliation -

SBM

46.9747 0.00

0.00

25.5.48 Revenue Suspense 47.6077 0.00

0.00

12th



136


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

25.5.49 Revenue Collection pending

classification 47.6097 0.00

25.08

Sub-Total

28620.47

35198.16

TOTAL

31395.06

37326.99

25.5.50 Under A/c 28.9187 the Regulatory Asset recognized on amounts allowed in tariff

order of subsequent period and towards the provisional gap expected to be

considered by KERC for recovery in subsequent years as on 31.03.2017 is as

follows:

Non Current Asset - ` 982.44 Crs (Previous Year : ` 344.05 Crs)

Other Current Asset - ` Nil (Previous Year : ` 120.41 Crs)

25.5.51 The GOK vide order No. EN 34 PSR 2008 Dated 19.08.2010 has ordered to

refund the amount paid by the framers during the period from 01.04.2001 to

31.03.2003 to them and the same is implemented by CESC. An amount of

` 18.63 Crs is shown as receivable from GOK under A/c code 28.6117.

NOTE: 26 REVENUE FROM OPERATIONS (` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

26.1 Revenue from

Operations

26.1.1 REVENUE FROM

SALE OF POWER-LT

26.1.1.1 Bhagya jyothi/ Kutira

Jyothi above 18 Units 61.1017 2736.10

2297.23

26.1.1.2

Bhagya jyothi/ Kutira

Jyothi Tariff Subsidy

upto 18 Units

61.6267 2389.53

2381.56

26.1.1.3

Domestic combined

lighting, heating and

motive power LT 2a(i)

61.1027 29947.22

25762.83

26.1.1.4

Domestic combined

lighting, heating and

motive power LT 2a(ii)

61.1037 13781.36

11335.88

26.1.1.5

Private, Professional

and other private

educational institutions

& Hospitals LT2 b(i)

61.1117 476.77

404.41

12th



137


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

26.1.1.6

Private, Professional

and other private

educational institutions

& Hospitals LT2 b(ii)

61.1127 210.54

177.40

26.1.1.7 Comml. Ltg.Htg. &

motive power LT3(i) 61.1157 17813.41

16240.47

26.1.1.8 Comml. Ltg.Htg. &

motive power LT3(ii) 61.1167 5950.57

5199.76

26.1.1.9

Revenue from sale of

power - Applicable to

KPTCL 33 KV, 66 KV, &

above stations

installation consumption

(Auxillary Consumption)

61.1177 198.57

201.24

26.1.1.10 Irrigation Pumpsets

(below 10 HP) -LT4a 61.1187 2561.23

1456.60

26.1.1.11

Subsidy receivable for

free Power supply to IP

Set below 10HP

61.6277 152443.82 101796.44

26.1.1.12

Private Horticulture

Nurseries,Coffee, &

Tea Plantations above

10HP LT4C(ii)

61.1207 269.12

212.64

26.1.1.13

Irrigation Pump sets

(above 10HP)/ Water

Lifting LT-4(b)

61.1217 56.48

39.87

26.1.1.14

Private Horiticultural

Nurseries, Coffee, &

Tea Plantations LT4 C(i)

61.1287 388.46

191.42

26.1.1.15

Installations motive

powers with 5.H.P and

below LT5(a)(i)

61.1297 310.87

207.69

26.1.1.16


powers with above

5HP & Below 40 HP

LT5(a)(ii)

61.1307 1168.51

1066.06

26.1.1.17


powers with above 40

HP & below 67 HP

LT5(a)(iii)

61.1317 1726.08

1637.84

12th



138


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

26.1.1.18



HP LT5 (a)(iv)

61.1337 156.77

163.68

26.1.1.19


powers with 5 HP &

below LT5(b)(i)

61.1347 693.53

601.89

26.1.1.20


powers with above

5 HP & below 40 HP

LT5 b(ii)

61.1357 2987.27

2659.16

26.1.1.21


powers with above

40 HP & below 67 HP

LT5 b(iii)

61.1367 2378.66

2334.40

26.1.1.22



HP LT5 b(iv)

61.1377 221.56

250.68

26.1.1.23 Water Supply – RLB,

ULB & Others LT6(a) 61.1407 10758.41

6315.51

26.1.1.24 Public Lighting - RLB,

ULB & Others LT-6(b) 61.1417 6695.16

5790.45

26.1.1.25

Temporary Power

Supply Non commerical

lights and fans and

other small appliances

LT-7(a)

61.1457 2119.43

1710.71

26.1.1.26

Applicable to hoardings

& Advertisement

boards, Bus shelters etc

power supply on

permanent connection

basis sanctioned load

containing less than 67

HP LT7 (b)

61.1467 6.37

6.46

Sub-Total

258445.82

190442.29

12th



139


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

26.1.2 Revenue from Sale of

Power -HT

26.1.2.1

Public Water Supply &

Sewerage Pumping

HT-1

61.2507 20474.06

18894.21

26.1.2.2

Industrial, Non Industrial

& Commercial purposes

& Railway Traction

HT-2(a)

61.2554,

61.2557 48909.92

50933.43

26.1.2.3 Commercial HT-2(b) 61.2567 10754.78

9244.02

26.1.2.4

Governement

Hospitals, Hospitals

run by Charitable

Institutions, ESI

Hospitals, Universities,

Educational institutions

etc., HT-2 C (i)

61.2837 2195.54

1855.89

26.1.2.5

Educational institutions

and Hospitals (other

than those covered

under HT-2 C (i)) -

HT-2 C(ii)

61.2847 1348.52

1357.97

26.1.2.6

Lift irrigation Schemes/

Lift irrigation societies

under Govt.

Department/ Govt

owned Corporations

HT-3 (a) (i)

61.2604,

61.2607 1923.25

1865.61

26.1.2.7

Private LI Schemes and

Lift Irrigation societies

other than those

covered under HT-3(b)

61.2617,

61.2627

12.30

3.45

26.1.2.8

Residential apartments

and colonies availing

power supply

independently HT-4

61.2807 235.04

303.17

26.1.2.9 Revenue from sale of

power – HT5 61.2707 1094.25

357.14

Sub-Total

86947.65

84814.89

12th



140


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

26.2 Less: Withdrawal of

Revenue Demand

83.8337+

83.8307+

83.8317+

83.8327+

83.8347

93.49 93.49 174.41 174.41

26.3 OTHER REVENUE

FROM OPERATIONS

26.3.1 Wheeling charges

26.3.2

Miscellaneous

Charges from

Consumers

26.3.2.1 Reconnection Fee

D & R

61.9027+

61.9017 75.37

37.07

26.3.2.2 Service Connection

(Supervision Charges) 61.9047 867.18

698.41

26.3.2.3 Miscellaneous Charges

from Consumers 61.9067 285.49

218.76

26.3.2.4 Cross subsidy Charges 61.2907 982.65

525.72

26.3.2.5 Fuel Cost Adjustment

Charges 61.2917 389.71

1015.55

26.3.2.6

Registration fee towards

SRTPV connection

(Solar roof top system)

61.9077 0.60

2.29

26.3.2.7

Facilitation fee towards

SRTPV connection

(Soalr roff top system)

61.9087 1.89

2.53

26.3.2.8 SRTPV application

fees 61.9177 -

0.01

Sub-Total

2602.89

2500.34

TOTAL

347902.86 277583.10

26.4 Particulars 2017 2016 Difference % Increase

Sales In (MU) 6260.28 5405.23 855.05 15.82

Revenue in lakhs 347902.86 277583.10 70319.76 25.33

12th



141

26.5 All Income and Expenditure having a material bearing on the financial

Statements are recognized on accrual basis.

26.5.1 Revenue Recognition.

26.5.1.1 Revenue from sale of energy is accounted on accrual basis.

26.5.1.2 The sale of energy is as per the tariff fixed by the Karnataka Electricity


26.5.1.3 Revenue for the year is also adjusted by estimating un-billed revenue of

previous year and current year.

26.6 Total Revenue from sale of energy during 2016-17 includes ` 19035.78 Lakhs

in respect of revenue accrued but pending billing at the year end. The same

was ` 17487.44 Lakhs for the previous year 2015-16.

26.7 During the year the amount to be received from the GOK as subsidy towards

free power supply to IP set consumer having connected load of upto and

inclusive of 10 HP and free power supply to BJ/KJ consumers with consumption

upto 18 units on actual basis is ` 152443.82 (PY ` 101796.44) lakhs and

` 2389.53 (PY ` 2381.56) lakhs respectively. Out of the said receivable, an

amount of ` 127555.00 (PY ` 147364.13) lakhs and ` 2139.00 (PY ` 3858.87)

lakhs has been released for IP set and BJ/KJ installations respectively as per

KERC Tariff Order. The balance amount is accounted as receivable from GOK.

26.8 The Corporation follows the method of recognizing the Revenue surplus

(Net Profit after tax) for the year as per CERC guidelines, at a benchmark rate

of 15.5% ROE.

26.9

26.10

The Government of Karnataka in its Order No. EN 48 PSR 2006 Bangalore,

Dated 13.06.2007 has approved to account R.E Subsidy as Tariff Subsidy by

ESCOMs in the books of accounts for Financial Year 2006-07 onwards and the

same has been accounted accordingly during this year.

Under A/c 61.9187, the Regulatory Assets of ` 517.99 Crs (PY ` 464.46 Crs)

includes, ` Nil (PY ` 120.41 Crs as allowed by the commission in its Tariff

Order) and additional regulatory asset to the extent of ` 638.40 Crs (PY

` 344.05 Crs) computed towards the provisional gap expected to be considered

by KERC for inclusion in the tariff revision of future years net of reversal of

` 120.41 Crs (PY Nil) created in FY 16.

12th



142

NOTE: 27 OTHER INCOME (` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

27.1 Interest Income

27.1.1 From Consumers

27.1.1.1 Delayed Payment Charges

from Consumers 61.9057 3973.99

8039.97

27.1.2 From Others

27.1.2.1 Interest on Bank Short term

Deposits

62.2227+

62.2607 367.22

176.21

27.1.2.2 Interest from Bank SB A/c 62.2707 0.25

-

Sub-Total

4341.46

8216.18

27.2 Dividend Income

27.3 Net Gain/Loss on Sale of

Investments

27.4 Other Non-Trading Income

27.4.1 Profit on sale of Stores 62.3307 2.32

1.49

27.4.2 Sale of Scrap

62.3407+

62.4007+

62.4107

16.66

26.76

27.4.3 Other Miscellaneous

receipts from Trading 62.3607 5.66

9.75

Sub-Total

24.63

38.00

27.5 Miscellaneous Receipts

27.5.1 Income accrued on account

of energy savings 62.2657 28.14

26.19

27.5.2 Rental from Staff Quarters 62.9017 199.18

201.90

27.5.3 Rental From others 62.9027 5.70

3.07

27.5.4

Excess found on Physical

verification of Materials

Stock, Fixed asset and

Cash.

62.9047+

62.9057 5.51

1.31

27.5.5 Rebate- for collection of

Electricity Tax 62.9167 54.36

43.64

27.5.6 Miscellaneous Recoveries 62.9177+

62.9178 3160.82

6100.07

27.5.7 Incentives received 62.9187 387.78

1361.21

27.5.8 Supervision Charges 62.9077 241.79

0.00

27.5.9 One Time maintenance 62.9087 3.69

0.00

12th



143

NOTE: 27 OTHER INCOME (` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

cost for New Layouts

27.5.10

Depreciation withdrawn

from Contribution /

subsidies as per AS-12

62.9607 4521.68

2556.88

27.5.11 Write back of Interest 62.2807 4298.00

-

Sub-Total

12906.65

10294.28

27.6 Income relating to

previous Years:

27.6.1 Receipts from consumers

relating to prior periods 65.2007 1474.39

976.10

27.6.2 Excess provision for IT 65.5007 -

0.03

27.6.3 Excess provision for

Depreciation in Prior Periods 65.6007 140.71

85.71

27.6.4

Excess provision for interest

and finance charges in Prior

periods

65.7007 154.22

181.59

27.6.5 Other Excess provision in

Prior Periods 65.8007 1273.79

1398.47

27.6.6 Other income relating to

prior periods 65.9007 816.57

333.08

Sub-Total

3859.69

2974.97

TOTAL

21132.44

21523.42

27.7

As per the Government Order No.EN O6 PSR 2009 Bangalore, Dated 22.2.2010

the rebate payable to the Electricity Distribution Compaines for collection of

Electricity Tax from Consumers and its remittance to Govt. is revised from 1.5 %

to 0.5% with effect from 01.01.2010

27.8

27.9

27.10

27.11

The Other income for 2016-17 of ` 21132.44 (PY ` 21523.42) lakhs includes the

Delayed Payment Charges from Consumers of ` 3973.99 (PY ` 8039.97) lakhs.

Accounting of Auxiliary consumption of KPTCL 33 KV, 66 KV & above station

consumption period from 2005-06 to 2016-17 is calculated based on State

Average Power Purchase Cost as per KERC Order dated for OP No.83/2016.

With implementation of AS-2 from 1.04.2016 the balance under Material cost

variance reserve account has been transferred to income account.

In accordance with the CERC Regulations and to fulfill the AS-12 Depreciation

on assets acquired out of the Grants, subsidy & Consumer contribution has been

withdrawn to an extent of ` 4521.68 Lakhs (PY ` 2556.88 lakhs).

12th



144

NOTE: 28 PURCHASE OF POWER (` In lakhs)

Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3. 2016

28.1 Purchase of Power

28.1.1 M/s KSEB 70.1027 55.04

50.38

28.1.2 M/s KPCL 70.1087 70236.85

70830.84

28.1.3 M/s NTPC-RSTPS STG

I &II 70.1107 11037.73

9051.72

28.1.4 M/s NTPC - RSTPS

STG.III 70.1117 2888.37

2747.94

28.1.5 M/s. NTPC -Talcher

STG.II 70.1127 7445.35

5934.70

28.1.6 M/s. MAPS 70.1137 546.54

468.13

28.1.7 M/s. NLC - TPS I 70.1147 3929.85

2882.88

28.1.8 M/s. NLC - TS II 70.1157 12408.53

6602.21

28.1.9 M/s PGCIL - SREB UI

Pool Account 70.1167 1680.72

2024.81

28.1.10 M/s. KAIGA 70.1177 6730.64

6774.27

28.1.11 M/s.JSW PTCL 70.1217 8324.31

13958.52

28.1.12 M/s South India Paper

Mills 70.1227 358.59

216.63

28.1.13 M/s ICL Coromandel

Sugars Ltd. 70.1237 106.22

1062.33

28.1.14 M/s Bannari Amman

Sugar Ltd-I 70.1247 1166.85

621.69

28.1.15 M/s Bhourka

(Madhavamantri) 70.1267 421.74

761.85

28.1.16 M/s Bhourka

(Mandagere) 70.1277 93.52

116.35

28.1.17 M/s EDCL 70.1287 559.96

579.50

28.1.18 M/s Vijayalakshmi Hydro 70.1297 21.08

109.03

28.1.19 M/s Atria Power

(Brindavan) 70.1307 10.63

742.19

28.1.20 M/s Bhoruka Power

Corporation Ltd. 70.1317 113.80

118.32

28.1.21 M/s Hemavathi Power &

Light Pvt. Ltd. -I (HLBC) 70.1327 359.23

687.28

28.1.22 M/s Hemavathi Power & 70.1337 522.19

301.40

12th



145


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3. 2016

Light Pvt. Ltd. -II (HRB)

28.1.23 M/s Trishul Power Pvt.

Ltd. 70.1347 72.91

127.98

28.1.24 M/s Chamundeshwari

Sugars Ltd 70.1377 39.34

0.00

28.1.25 M/s. Bhoruka Power

Corporation Ltd. 70.1387 631.17

935.43

28.1.26 M/s KPTCL

Transmission Charges 70.1397 34650.33

30542.22

28.1.27 M/s PGCIL

Transmission Charges 70.1407 15511.27

10481.91

28.1.28 M/s SLDC- O&M

Expenses 70.1427 240.00

215.72

28.1.29 M/s SPPCC O & M

Expenses 70.1437 81.92

86.63

28.1.30 M/s TBHE 70.1457 0.00

99.54

28.1.31 Energy Balance A/C-

BESCOM 70.1467 19525.30

8188.36


MESCOM 70.1477 3675.35

(99.07)


HESCOM 70.1487 3074.64

(6277.47)


GESCOM 70.1497 3165.28

308.93

28.1.35 M/s PTC India Ltd. 70.1607 3691.67

830.64

28.1.36

M/s Lanco Electric Utility

Co. (Open Access

Charges)

70.1617 2363.35

441.39

28.1.37 M/s Venika green power 70.1627 -

(0.24)

28.1.38 M/s EDCL (wind) 70.1647 111.46

100.16

28.1.39 M/s Keerthi IND 70.1657 105.81

95.79

28.1.40 M/s Renaissance

Holding (27&28) 70.1667 218.25

196.23

28.1.41 M/s Renaissance

Holding (33&35) 70.1677 222.50

200.33

28.1.42 M/s Nutech associates 70.1687 127.02

119.74

12th



146


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3. 2016

28.1.43 M/s Senthil Energy Pvt

Ltd 70.1697 113.61

99.91

28.1.44 M/s Qube energy

Projects Pvt Ltd. 70.1707 120.32

103.65

28.1.45 M/s Sapthagiri

Distilleries 70.1717 232.74

210.05

28.1.46 M/s Savitha Oil

Technologies Ltd. (H.05) 70.1727 256.60

218.69

28.1.47 M/s Kuminex Minerals

Pvt.Ltd. 70.1737 265.34

225.61

28.1.48 M/s NVR Vidyut Pvt Ltd

(H.36- 38) 70.1747 276.82

225.42

28.1.49 M/s The Chennai Silks 70.1757 142.05

103.62


(H.40) 70.1767 80.23

69.40

28.1.51 M/s Mukund Kamath.S 70.1777 70.97

61.77


(H.43) 70.1787 86.25

72.13

28.1.53 M/s Happy valley

Developers 70.1797 66.04

49.59

28.1.54 M/s Emkay taps &

Cutting Tools .Pvt. Ltd. 70.1807 65.53

57.30

28.1.55 M/s Rathnagiri Impex.

Pvt, Ltd 70.1817 56.29

42.46

28.1.56 M/s Ramco Industries 70.1827 93.71

102.37

28.1.57 M/s Ushdev Engitech

Ltd. (H-14) 70.1837 93.42

75.99


Ltd. (H-15) 70.1847 102.50

92.64


Ltd. (H-16) 70.1857 122.27

109.43


Ltd. (H-17) 70.1867 128.61

116.49


Ltd. (H-18) 70.1877 123.31

111.18

28.1.62 M/s Ramabhen Ukabhai

(H-19) 70.1887 106.72

104.06

12th



147


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3. 2016

28.1.63 M/s Limbavali Power

Private Ltd. 70.1897 204.58

760.68

28.1.64

LC Charges/ Other Bank

Commission Paid For

Purchase Of Power

70.1917 171.49

107.02

28.1.65 M/s BPCL (Manjadka) 70.1927 320.51

361.73

28.1.66 M/s Simran Wind

Projects H-29 70.1947 74.19

66.55

28.1.67 M/s Simran Wind

Project H-34 70.1957 92.88

84.64

28.1.68 M/s Atria Brindavan (4

Mega Watt) Ltd 70.1977 154.11

420.93

28.1.69 M/s High cost energy

suppliers 70.2677 2871.73

25.96

28.1.70 M/s NTPC VVNL (IPP) 70.4017 165.95

0.00

28.1.71 M/s BVSR-11 70.4027 96.23

82.09

28.1.72 M/s BVSR-12 70.4037 89.25

77.73

28.1.73 M/s Avon GP-08 70.4047 104.60

89.70

28.1.74 M/s Avon GP-09 70.4057 95.47

69.78


Technologies H26 70.4067 101.69

95.12



85.97



75.57

28.1.78 M/s Friends Salt GP-14 70.4097 77.94

63.83

28.1.79 M/s Frineds Salt GP-16 70.4107 97.32

79.24

28.1.80 M/s Friends Salt GP-20 70.4117 87.89

68.64

28.1.81 M/s Sree Minerals 70.4127 91.87

70.56

28.1.82 M/s Durga Agencies,

GP-18 70.4137 96.62

80.05

28.1.83 M/s Durga Agencies,

GP-19 70.4147 92.51

72.22

28.1.84 M/s Eastmen

International Ltd 70.4157 308.12

237.72

28.1.85 M/s Mysore mercetaile

Co Ltd 70.4167 113.21

126.28

12th



148


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3. 2016

28.1.86 M/s Nagarjun Hydro

Energy Ltd 70.4177 1126.54

1020.68

28.1.87 M/s UPCL 70.4187 36790.75

41635.83

28.1.88 M/s Hindustan Zinc Ltd

(GP 02,03,04) 70.4207 280.46

228.82


(GP-17) 70.4217 104.05

86.84


(GP-23,24) 70.4227 215.52

181.22


(GP-28,31) 70.4237 350.88

288.68

28.1.92 M/s NTPC-Simhadri

Thermal Power station 70.4257 8976.03

6305.85

28.1.93

M/s Tata power Trading

Company Ltd (M/S

TPCL)

70.4267 804.09

3013.37

28.1.94 M/s POSOCO-SRLDC 70.4277 35.12

32.43

28.1.95 M/s GAIL (India) Ltd

(MG-01 to MG-06) 70.4287 620.76

495.90


(MG-07 to MG-13) 70.4297 649.52

528.81

28.1.97 Non PPA Power

Generators 70.4307 1.19 11.07


(MG-14 to MG-15) 70.4317 205.78

170.56


(MG-16 to MG-17) 70.4327 167.49

138.15

28.1.100 M/s Arvind V Joshi & Co. 70.4337 88.51

70.04

28.1.101 M/s Pearlite lineres Pvt

Ltd 70.4347 106.29

85.79

28.1.102 M/s BMM ISPAT Ltd 70.4357 822.03

3902.24

28.1.103 M/s Gujarat Urja Vikas

Nigama ltd 70.4367 -

-

28.1.104 M/s Harekrishna

Metallics 70.4377 -

36.17

28.1.105 M/s NSL Sugars

(Tungabhadra) Ltd 70.4387 149.64

376.30

12th



149


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3. 2016

28.1.106 M/s Vijayanagar Sugars

Pvt Ltd 70.4407 9.57

0.00

28.1.107 M/s NTPC Tamilnadu

Energy Pvt Ltd 70.4417 5156.77

2677.75

28.1.108 M/s Dhruvadesh

Metasteel Pvt Ltd., 70.4427

0.00 49.41

28.1.109 M/s Essar Power MP

Ltd., 70.4437 0.00 0.00

28.1.110 M/s Global Energy Pvt.

Ltd., 70.4447 0.00 267.52

28.1.111 M/s Ideal Energy Project

Ltd., 70.4457 0.00 83.08

28.1.112 M/s Reliance Energy

Trading Ltd., 70.4467 0.00 0.00

28.1.113 M/s Satish Sugars Ltd., 70.4477 65.09 385.21

28.1.114 M/s Tangedco Ltd., 70.4487 3.83 3.86


Project Pvt Ltd. 70.4497 172.25 82.47

28.1.116 M/s Flax Hydro Energy

Pvt Ltd., 70.4507 3.31 20.75

28.1.117 M/s Kudankulam Nuclear

Power Project 70.4517 6589.84 1833.09

28.1.118 M/s NTPC-VVNL(Solar) 70.4527 3136.40 2883.98

28.1.119 M/s Priyadarshni Jurala

Hydro Electric Scheme 70.4537 651.64 663.34

28.1.120 M/s Athani Sugars Ltd. 70.4547 9.90 431.89

28.1.121 M/s Nirani Sugars Ltd. 70.4557 90.67 281.86

28.1.122 M/s GMR Energy

Trading Ltd. 70.4567 0.00 85.20

28.1.123 M/s NLC-TPS II Exp 70.4577 1936.68 803.62

28.1.124 M/s NLC Tamil Nadu

Power Ltd. 70.4587 6625.36 2794.88

28.1.125 Renewable Energy

Certificate for Solar RPO

Deficiency

70.4597 0.00 0.00

12th



150


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3. 2016

28.1.126 M/s Madhav solar


(Project-1)

70.4607 643.46 433.31

28.1.127 M/s Madhav solar


(Project-2)

70.4617 683.16 443.44

28.1.128 M/s Mittal Processors

Pvt. Ltd 70.4627 247.75 1097.28

28.1.129 M/s Balkeshwara

Sugars. Ltd 70.4637 12.61 99.53

28.1.130 M/s IPP’s under section

11 70.4647 4005.42 16813.63

28.1.131 M/s Damodar Valley

Corporation. 70.4657 14209.83 2182.11

28.1.132 M/s Emami power

Limited (Solar) 70.4667 1413.39 53.97

28.1.133 M/s Chikku Energy

Private Ltd (Solar) 70.4677 212.82 0.00

28.1.134 M/s CBM Enterprises

(Solar) 70.4687 179.08 0.00

28.1.135 M/s Maharashtra State

Electricity Distribution

Company Ltd

70.4697 2715.06 0.00

28.1.136 M/s Core Green Sugar

and Fuels Pvt Ltd 70.4707 20.27 0.00

28.1.137 M/s E.I.D Parry (India)

Ltd 70.4717 137.56 0.00

28.1.138 M/s GEM Sugars Ltd 70.4737 69.77 0.00

28.1.139 M/s Godavari Bio

Refineries Ltd 70.4747 149.31 0.00

28.1.140 M/s Jamkhandi Sugars

Ltd 70.4757 85.21 0.00

28.1.141 M/s KPR Sugar Mills Pvt

Ltd 70.4767 49.67 0.00

28.1.142 M/s Manali Sugars Ltd 70.4777 2.21 0.00

28.1.143 M/s Shiraguppi Sugar

works Ltd 70.4787 50.06 0.00

12th



151


Sl.

No. Particulars

Account

Code As At 31.3.2017 As At 31.3. 2016

28.1.144 M/s Shri

Prabhulineshwar Sugars

& Chemicals

70.4797 48.16 0.00

28.1.145 M/s Shivashakthi Sugars

Ltd 70.4807 54.16 0.00

28.1.146 M/s Shree Renuka

Sugars Ltd 70.4817 121.32 0.00

28.1.147 M/s Soubhagyalakxmi

Sugars Ltd 70.4827 5.92 0.00

28.1.148 M/s Saketh Solar Energy

LLP (Solar) 70.4837 133.72 0.00

28.1.149 M/s Gorich Energy Pvt

Ltd (Solar) 70.4847 45.88 0.00

28.1.150 M/s A.V Anjaneya

Prasad (Solar) 70.4857 35.91 0.00

28.1.151 M/s Solar roof top

consumer 70.5007 140.13 3.74

28.1.152 M/s Azure Sunrise Pvt

Ltd (Solar) 70.4897 45.66 0.00

28.1.153 M/s Tanivi Solar Pvt Ltd

(Solar) 70.4907 29.75 0.00

28.1.154 M/s Raygen Power Pvt

Ltd (Solar) 70.4917 22.74 0.00

28.1.155 M/s Raichur Power

Corporation Ltd

(Yermarus TPS)

70.4927 376.68 0.00


(Congestion Charges) 70.4937 (0.70) 0.00


(Reactive Energy

Charges

70.4947 (11.87) 0.00


(Reactive Energy

Charges - Inter State)

70.4957 (5.71) 0.00

TOTAL

326690.70

271774.60

28.2 The Power Purchase cost is recognized based on the Government of Karnataka

Order No. EN 131 PSR 2003 Dated 10th May 2005 for accounting the cost of

12th



152

power based on the billings made by Power Generators Pool allocated to

CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED,

MYSORE by the Government of Karnataka.

28.3

28.4

The KERC in its Tariff Order-2009 has determined the transmission charges

based on the installed generation capacity of the state.

The final energy balancing result is awaited from LDC as on the date of

preparation of accounts. However, the energy balancing result arrived at joint

reconciliation meeting held among the ESCOMs have been incorporated in the

accounts.

28.5 Particulars 2017 2016 Difference % Increase

Power Purchased In (MU) 7544.85 6444.86 1099.99 17.07

Power Purchase Cost in

lakhs 326690.70 271774.60 54916.10 20.21

28.6 Power Purchase costs and adjustments therefor, if any, required have not been

accounted by the company wherever claims have not been received from the

respective generators or power traders.

28.7 Pending finality of decision by PCKL, ESCOMs and UPCL at their meetings for

resolving issues relating to the billing of UPCL power plant for earlier years, no

adjustments to power purchase cost has been considered necessary in the financial

statement for the year, as a matter of prudence.

28.8 M/s KPCL, has preferred a claim of ` 15.91 Crs as supplementary capacity charges

for the period from 2008-09 to 2015-16. The claim materially differs from the amount

determined by the company based on details available at our end and the same has

been communicated to M/s KPCL. Pending clarification relating to their working

which is required for ascertaining its corrections, the claim raised by KPCL has not

been accounted in FY 2016-17 and treated as contingent liability.

NOTE: 29 EMPLOYEE COSTS (` In lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

29.1 Salaries and Wages

29.1.1 Salaries 75.1

Series 15312.85

15770.76

29.1.2 Over Time 75.2 " 277.40

327.02

29.1.3 Dearness Allowance 75.3 " 5668.91

5035.05

29.1.4 Other Allowance 75.4 " 2215.92

2332.08

29.1.5 Bonus 75.5 " 393.38

546.43

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153

NOTE: 29 EMPLOYEE COSTS (` In lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

Sub Total

23868.46

24011.34

29.2.1 Medical Expenses

reimbursement 75.6117 198.01

231.78

29.2.2 Leave travel assistance 75.6127 0.24

0.41

29.2.3 Earned leave

encashment

75.6176+

75.6177+

75.6167

1093.85

1169.92

29.2.4

Earned leave

encashment - retired

employees

75.6187 643.29

586.96

29.2.5

Payment to helpers /

employees of Monsoon

Gang

75.6297,

75.6307 69.95

40.63

Sub Total

2005.34

2029.70

29.3 Staff Welfare expenses 75.7 Series 188.47

293.47

29.4 Terminal Benefits

75.8107+

75.8407+

75.8307+

75.8607+

75.8807+

75.8907+

75.8317+

75.8707

5478.74

6430.54

Sub Total

5667.21

6724.01

29.5 Less : Employees Cost

Capitalized 75.9007 -

- -

TOTAL

31541.01

32765.04

29.6.1 Employment Benefits:

29.6.2.1 The Company makes contribution for Pension and Gratuity to KPTCL / ESCOM's

Pension and Gratutiy Trust based upon the acturial valuation of the Trust. For

employees who have joined the Company on or after 01.04.2006 the penison plan

is according to New Defined Contributary Pension Scheme.

29.6.2.2 As per ‘KPTCL and ESCOM’s Pension & Gratuity Trusts’ Order No.

KEPGT/KC0123/P7/2015-16/ CYS-58 BANGALORE Dated 23rd Feb 2016. the

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154

Monthly Contribution rates towards Pension and Gratuity are as below.

From To

Pension Contribution

on Basic Pay +

Dearness Allowance

Gratuity Contribution

on Basic Pay +

Dearness Pay

01.04.2013 31.03.2014 32.01% 6.03%

01.04.2014

Onwards

Until further

orders

33.02% 6.06%

29.6.2.3 The contribution is being paid to the P&G Trust based on the actuarial valuation

as intimated by the Trust from time to time.

29.6.2.4 Leave encashment & family benefit fund is on cash basis, payable as per

company’s rules.

29.6.3 Subsidized Lighting Benefits to Employees:

Difference between power purchase cost and subsidized rate on free lighting

provided to the employees of KPTCL including employees on deputation to


MYSORE in the service area of the Corporation is recognized as expenditure in

the books of the company. However the same is treated as perquisites to the

concerned employees while assessing taxable Income of such employees.

29.6.4 Managerial Remuneration

(`in lakhs)

Expenses

Managing Director Director (T)

2016-17 2015-16 2016-17 2015-16

Salaries 9.98 8.37 16.07 11.72

Ex-gratia 0.11 0.01 0.05 0.04

Travelling Expenses 2.97 2.82 0.73 1.55

House Rent 5.29 5.02 0.00 0.00

Total 18.35 16.22 16.85 13.31

NOTE: 30 FINANCIAL COSTS-INTEREST AND OTHER BANK CHARGES

(` In lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

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155

30.1 Interest Expenses

30.1.1 Interest on Other Loans/

Deferred Credits

30.1.2 Interest on Over draft

SBM 78.5007 524.72

221.96

30.1.3 Interest on Loan from

REC

78.5407+

78.5417+

78.5107

5571.56

4623.01


REC (Short Term) 78.5117 39.45

0.00


Bank of India (Capex) 78.5127 0.00

0.00

30.1.6

Interest on Loan from

Syndicate Bank - UNIP

(Long Term)

78.5137 7.21

0.00

30.1.7 Interest on APDRP Loan

from REC 78.5447 7.89

89.87


Commercial Banks 78.5607 7244.97

6654.25

30.1.9 Interest on APDRP Loan

from GOK 78.5617 162.09

185.24


PFC

78.5847

78.5097 541.10

614.64

30.1.11

Interest on Loan from

GOK-Energisation of

Irrigation Wells

78.5917 0.00

2.56

30.1.12 Interest on PFC Loan for

RAPDRP 78.5978 213.32

0.00

30.1.13 Interest on consumer

Deposits 78.6 3811.02

3807.71

30.1.14

Interest on belated

payments

(Power purchase)

80.1087 to

80.2667 2764.93

705.21

30.1.15 Guarantee Commission to

GOK 78.8687 0.00

0.00

30.1.16 Other interest and

Finance Charges

78.8817+

78.8837+

78.8617+

78.8677+

78.8647+

78.8827+

78.8967

115.30

47.48

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156

Sub Total 21003.55 16951.94

30.2

Less:Interest and

Finance charges

Capitalized

78.9 1283.52 1283.52 1921.78 1921.78

Total Finance Costs

19720.03

15030.15

NOTE: 31 DEPRECIATION AND AMORTIZATION EXPENSES (NET) (` In lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

31.1 Depreciation on Fixed

Assets

31.1.1 Amortisation of Lease Hold

Land 77.1107 1.32

1.32

31.1.2 Depreciation on Buildings 77.1206+

77.1207 253.10

226.28

31.1.3 Depreciation on Hydraulic

Works 77.1307 11.70

9.50

31.1.4 Depreciation on Civil works 77.1406+

77.1407 2.89

2.38

31.1.5 Depreciation on Plant and

Machinery

77.1504+

77.1506+

77.1507

3604.47

2919.36

31.1.6 Depreciation on lines,cable,

network etc., 77.1607 10571.48

8459.66

31.1.7 Depreciation on Vehicles 77.1707 8.41

9.12

31.1.8 Depreciation on furniture,

fixtures 77.1807 27.48

19.27

31.1.9 Depreciation on Office

equipments 77.1907 71.04

38.77

31.1.10 Depreciation on intangible

Asset-Software

77.1917+

77.1918 205.17

0.00

Total

14757.07

11685.65

31.2 Depreciation on Released

Assets

31.2.1

Depreciation on Released

Good Asset- Plant and

Machinery

77.1517 0.00

57.71

31.2.2 Depreciation on Released

Good Asset- lines, Cable, 77.1617 0.00

2.46

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157

NOTE: 31 DEPRECIATION AND AMORTIZATION EXPENSES (NET) (` In lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3.2016

network etc

Sub-Total

0.00

60.18

Depreciation (Net)

14757.07

11745.83

31.3 The revised rate of Depreciation stated in Annexure-1 as per notification by

CERC vide Notification No.L-7/145 (160)/2008- CERC dated 19th January 2009

has been adopted with effect from 01.04.2009.

31.4 Depreciation is calculated annually based on straigt line method over the useful

life of the asset under historical cost.

31.5 Depreciation on all assets is provided up to 90% of the original cost. Residual

value of 10% is maintained in the books except for intangible assets 100%

Depreciation is charged.

31.6 Plant and Machinery costing `500/- or less individually are written off fully in the

year in which they are installed and put to use.

31.7 Depreciation is charged from the first year of operation. In case of operation of the

assets for part of the year, depreciation is charged on Prorata basis.

31.8 In respect of released assets depreciation is charged up to the date of dismantling

and not for the whole year as was done in the earlier years.

31.9 Rates of Depreciation are not in conformity with the rates prescribed in

Schedule II, of the Company’s Act 2013, but followed the CERC Regulations.

NOTE: 32 OTHER EXPENSES (` In lakhs)

Sl.

No Particulars

Account

Code As at 31.3.2017 As at 31.3.2016

32.1 Repairs

32.1.1 Plant and Machinery 74.1 Series 2585.82 2234.08

32.1.2 Buildings 74.2 " 223.15

117.70

32.1.3 Civil Works 74.3 " 173.94

134.63

32.1.4 Lines, Cables Net Work Etc., 74.5 " 1275.76

1418.37

32.1.5 Vehicles 74.6 " 15.28

14.68

32.1.6 Furnitures and Fixtures 74.7 " 0.04

0.00

32.1.7 Office Equipments 74.8 " 2.85

4.94

Sub-Total

4276.83

3924.40

32.2 A & G Expenses

12th



158


Sl.

No Particulars

Account

Code As at 31.3.2017 As at 31.3.2016

32.2.1 Rent, Rates & Taxes 76.1017 &

76.1027 161.67

170.50

32.2.2

Service tax-payment to Central

Excise Customs and Service

Tax Department

76.1087 84.03

100.68

32.2.3

Pagers cellular phones E-mail,

Telephone, Trunk call,

Telegrams and Telex Charges

76.1117 &

76.1127

76.1177

213.13

137.44

32.2.4 Postage 76.1137 &

76.1147 11.37

12.35

32.2.5 Revenue Receipt Stamps

/Computer billing

76.1157+

76.1167 1029.02

631.87

32.2.6 Legal Charges 76.1217 37.81

15.29

32.2.7

Audit Fee includes

Statutory Audit fees `4,25,000

and Tax Audit Fee `1,25,000/-

76.1227 7.78

5.73

32.2.8 Consultancy Charges 76.1237 15.01

36.95

32.2.9 Other Professional Charges 76.1257 to

76.1307 3620.33

2027.34

32.2.10 Conveyance & Travel

expenses

76.1317 to

76.1397+

76.1327

1114.88

965.69

Sub-Total

6295.02

4103.83

32.3 OTHER EXPENSES

32.3.1 Fees & Subscriprtion 76.1517&

76.1507 126.61

104.52

32.3.2 Books periodicals and dairies 76.1527 13.39

24.24

32.3.3 Printing & Stationery 76.1537 109.50

100.11

32.3.4 Factory License Fees 76.1547 -

-

32.3.5 Advertisement Expenses 76.1557 23.44

61.00

32.3.6 Computer stationary and

floppies 76.1567 15.91

10.30

32.3.7 Contributions 76.1577 8.09

81.44

32.3.8 Electricity Charges 76.1587 107.61

97.31

32.3.9 Administrative and General

Expenses related to KPTCL / 76.1597 15.55

99.15

12th



159


Sl.

No Particulars

Account

Code As at 31.3.2017 As at 31.3.2016

ESCOMS Pension & Gratuity

Trust

32.3.10 Water Charges 76.1607 2.53

14.80

32.3.11 Expenditure related to EESL

for energy savings 76.1657 306.60

292.69

32.3.12 Expenses towards consumer

relation / education 76.1707 12.99

7.43

32.3.13 Entertainment, secret service

grant

76.1627+

76.1837+

76.1647

0.00

0.00

32.3.14 Maintenance Charges of

DTLMS 76.1717 0.00

0.00

32.3.15 Revenue Expenditure incurred

on Software 76.1917 96.03

0.00

32.3.16 Transaction charges paid to

revenue collecting agencies 76.1957 0.00

6.38

32.3.17

Transaction charges paid to

revenue collecting agency

(Mobile one)

76.1967 17.57

9.96

32.3.18 Miscellaneous expenses 76.1907+

76.7627 113.73

88.28

32.3.19 Freight & other Material related

expenses

76.2017+

76.2107 to

76.2707

15.70

25.56

32.3.20 Vehicle running expenses

(store) 76.2407 16.97

17.50

32.3.21 Advertisement of Tenders,

Notices & Others 76.2607 30.06

13.59

Sub-Total

1032.29

1054.27

32.4 Other Debits

32.4.1 Assets Decommissioning

Costs 77.5507 76.57

78.21

32.4.2 Small & Low Value items

Written Off 77.6107 0.38

10.96

32.4.3 Losses Relating to Scraped

Assets 77.7 series 168.86

38.84

12th



160


Sl.

No Particulars

Account

Code As at 31.3.2017 As at 31.3.2016

32.4.4 Material Cost Variance 79.1107 0.00

0.00

32.4.5 Bad & Doubtful Debts Written

off

79.4107+

79.4207 112.17

63.96

32.4.6

Provision for Bad & Doubtful

Debts provided for dues from

consumers

79.4607 311.05

126.37

32.4.7 Bad & Doubtful Debts Provided

for others 79.4807 189.73

45.93

32.4.8 Miscellaneous losses and

Write offs 79.5 Series 4878.20

114.51

Sub-Total

5736.96

478.79

32.5 Prior Period Expenses/

Losses:

32.5.1 Short Provision for Power

Purchase 83.1007 967.01

269.71

32.5.2 Operating Expenses of

previous years 83.3007 7.13

12.38

32.5.3 Employee costs relating to


94.61

32.5.4 Depreciation under provided in


1124.61

32.5.5

Interest and other Finance

charges relating to previous

years

83.7007+

83.8007 28.29

106.03

32.5.6 Administrative Expenses -

Previous Year 83.8207 134.27

160.33

32.5.7 Materials related expenses -

Previous Year 83.8407 87.57

124.00

32.5.8 Other Expenses relating to

prior periods 83.8507 3645.35

494.43

Sub-Total

6065.03

2386.09

TOTAL

23406.14 11947.37

32.6 Rent recovered from employees is accounted as income. Likewise the HRA paid

to the emloyees is accounted as expenditure. HRA paid to employees is treated as

perquisites to the concerned, while assessing the I.T recoverable from the said

12th



161

employees.

32.7 Provision for bad and doubtful debts is made in the accounting Divisions at 4% (as

per para 4.2 of Annexure V of ESAAR, 1985) on the net balance of Sundry Debtors

for sale of power outstanding as at the end of the year till 2009-10.

32.7.1

32.7.2

During 2010-11, Policy has been changed as per specially constituted committee

recommendation, the provision for bad and doubtful debts has been provided in the

following manner.

To treat the quantum of actual arrears outstanding under permanently

disconnected installations under LT1 (BJ installations consuming more than

18 units), LT2, LT3, LT5 and HT tariff, wherever action has been taken under

“Recovery of dues Act”, as the provision for Bad and doubtful of recovery.

32.7.3 Not to consider the dues of IP (irrespective of disconnection), water supply &

streetlight dues as bad and doubtful of recovery.

32.8 Disclosure of transactions with Related parties as required by the

Accounting Standard-18

32.8.1

33.2

In view of paragraph 9 of AS18, no disclosure is required as regards related party

relationships with other state-controlled enterprises and transactions with such

enterprises.

Other disclosures as required under AS-18 refer note No.29.6.4

NOTE: 33 Regulatory Income / Expenses (` In lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3. 2016

33.1 Regulatory Income

33.1.1

Income on account

of Regulatory Assets

/ Truing up subsidy

61.9187 51798.60

46446.00

TOTAL

51798.60

46446.00

The Company is engaged in operation of Supply of Electricity to the

consumers covered under its jurisdiction. The rates are regulated by the

Honb’le Karnataka Electricity Regulatory Commission (KERC).

As per section 62 of Electricity Act 2003, the CESC is filing tariff application

yearly with Regulatory Commission for determination of tariff. The Regulatory

Commission determines the tariff as per procedures laid in section 64 of

Electricity Act 2003. The Company collects tariff from consumers as approved

in the tariff order issued by the Regulatory Commission.The Honb’le KERC

through its Tariff Orders allow recovery of defeicits in subsequent periods

besides through truing up orders. In this back ground, the Company has

accounted the regulatory asset of ` 517.99 Crs being recognition of ` 638.40

12th



162

Crs of additional regulatory asset computed towards the provisional gap

expected to be considered by KERC for recovery in subsequent years and

reversal of ` 120.41 Crs created in FY16. Thus the regulatory Assets as on


Non Current Asset - ` 982.44 Crs (PY ` 344.05 Crs)

Other Current Asset - ` Nil (PY ` 120.41 Crs)

NOTE: 34 TAX EXPENESES (` In lakhs)

Sl.

No Particulars

Account

Code As At 31.3.2017 As At 31.3. 2016

34.1 Tax Expenses

34.1.1 Current Tax 81.1017 669.02

0.00

34.1.2 Deferred Tax 81.1027 1905.56

1497.25

34.1.3 Short Provision for IT 83.8107 0.00

0.00

TOTAL

2574.58

1497.25

34.2

34.2.1

Segment Reporting

34.2. The Corporation operates only in one sector viz., Distribution of Electricity.

Accordingly accounts are compiled for this sector. Hence Segmental reporting is

not applicable to the Corporation. The company neither has more than one

business segment nor more than one geographical segment hence segment

reporting as required under AS-17 is not applicable for the company.

34.3 Amounts due to Small and Medium Enterprises as required under the Micro,

Small & Medium Enterprises Development Act, 2006 are not ascertained in the

absence of ready related information. The company has not received any

confirmations from the registered suppliers as of date, in respect of whom

disclosures are required to be made under the said Act.

34.4 Providing insurance on fixed assets involves huge expenditure and it is not

economical, therefore fixed assets have not been insured.

34.5 Previous year’s figures have been regrouped, reclassified and re-arranged

wherever necessary.

34.6

34.7

Foreign exchange earnings: NIL(PY Nil)

Foreign exchange expenses: NIL(PY Nil)

Value of Imports on CIF basis: NIL

34.8 Earnings per Share

PARTICULARS As at 31.3.2017 As at 31.3.2016

Net Profit / Loss after tax (In lakhs) (A) 2144.37 792.28

12th



163

Weighted Average number of shares

outstanding during the year for Basic and

Diluted EPS (B)

508565434.00 326515309.00

Basic and Diluted Earnings per Share

A/B in (`) 0.66 0.24

34.9 Contingent Liabilities:

34.9.1

The KPTCL vide its circular letter.No. FA (A&R)/C (AP&A)/DC (A&C)/

AAO-1/CYS-104/Dt.15.03.2007 has communicated to CESC that to create the

additional fixed cost paid by the KPTCL for supply of power by Thannir Bhavi

Power Corporation Limited (TBPCL) as Regulatory Assets & Liabilities. The

Amount is to be passed on to the consumers through tariff approval from KERC

and the amount collected from the consumers is to be passed on to KPTCL. The

Hon'ble KERC is yet to approve this matter. In view of the above facts, the

company has treated this as contingent and thus not recognized the Regulatory

Assets and Liabilities of ` 51.39 Crore in the books of accounts.

34.9.2

34.9.3

Interest claimed by KPCL on belated payments is under dispute and hence the

same is not provided. As Per KPC the Interest Payable by CESC for the year

2014-15 is ` 20599.38 lakhs and as per CESC amount was ` 13570.19 lakhs.

Further, for FY 15-16 Interest as per KPC is ` 20440.27 lakhs (after accounting

` 683.41 lakhs) and as per CESC the interest is ` 13995.16 lakhs (after

accounting ` 683.41 lakhs) and this interest is treated it as contingent liability.

Since, KPCL has not furnished the final interest figures for the FY17, for the

outstanding dues for current FY 2016-17, interest has been provisionally

accounted as ` 724.75 Lakhs. This is subject to revision upon the receipt of the

final bill from KPCL for FY 2016-17.

PCKL vide letter no. PCKL/A 12/331/2010-11/5289-99 Dated 26.02.2015,

addressed to UPCL has stated that the infirm power payments to UPCL were not

admitted as the same was not considered in the final order of CERC. Hence the

infirm energy charges accounted has been withdrawn from the accounts during

current year. As per PCKL the determination of tariff, including infirm energy

charges of UPCL is still pending in APTEL vide RP No. 19/2015 and Appeal No.

108/2014.

In the light of the above, the infirm energy charges of UPCL, amounting to

` 141360618.00 has been shown as contingent liability.

Further during 2015-16 fixed charges amounting to ` 6,39,16,688/- has not been

admitted by CESC since M/s UPCL has claimed the fixed charges for 342.66 days

12th



164

34.9.4

34.9.5

Others

34.9.6

instead of 366 days sighting the remaining 23.34 days as force-majeure event.

The admissibility of force-majeure event claimed by UPCL has not been decided

by PCKL. Further pending outcome of any truing up petition filed by UPCL with

CERC, the amount of ` 6,39,16,688/- is kept as contingent liability.

The Hon’ble KERC in its Suo Motto Order’s Dated 31.03.2016 has ordered to

collect ` 3.40 instead of ` 3.70 per unit in respect of M/s Savitha Oil Technologies

Ltd & Avon Cycles Ltd duly taking into considered the date of Commission.

Further, the orders of Hon’ble KERC orders has been challenged by the

Generators before the “Hon’ble APTEL” and stayed the orders of KERC,

Consequent to this the amount involved in ` 1.71 Crs and this amount is treated

as Contingent Liability.

M/s KPCL has preferred a claim of ` 15.91 Crs as supplementary capacity

charges for the period from 2008-09 to 2015-16. The claim materially differs from

the amount determined by the company based on details available at our end and

the same has been communicated to M/s KPCL. Pending clarifications relating to

their working which is required for ascertaining its correctness, the claim raised by

KPCL has not been accounted in FY 2016-17 and treated as contingent Liability.

Claims against Company not acknowledge as debt

Sl.No Particulars No. Amount in `

1 Revenue

(a) Court cases

Up to 1 Year 3 394994.00

1 Year to 3 Year 2 102426.00

More than 3 Years 1 98509.00

Total 6 595929.00

(b) Appeals

Up to 1 Year 15 842865.00

1 Year to 3 Year 2 1759792.00


Total 33 6455996.00

2 Service Tax

8

4078987.00

Interest 5129867.00

Penalty 3633197.00

3 Legal cases (Other than

12th



165

34.9.7

revenue cases)

Up to 1 Year 50 9129580.00

1 Year to 3 Year 106 33098583.00


Total 235 62111219.00

4 Income tax (TDS Default) 4267589.45

Total 86272784.45

Details of specified Bank Notes (SBN) held and transacted during the period

from 8th November, 2016 to 30th December, 2016 is provided in the Table

below:-

Particulars SBNs Other Denomination

notes Total

No’s Amount in ` No’s Amount in ` No’s Amount in `

Closing cash

in hand as

on

08.11.2016

12491.00 7205500.00 18663.00 1946947.00 31154.00 9152447.00

(+) Permitted

receipts -

Receipts

against dues

on Electricity

Consumption

being utility

bill in nature

920036.00 546712400.00 2056882.00 582342045.00 2976918.00 1129054445.00

(-) Permitted

Payments 0.00 0.00 0.00 0.00 0.00 0.00

(-) Amount

deposited in

Banks

932527.00 553917900.00 2019717.00 574058408.00 2952244.00 1127976308.00

Closing cash

in hand as on

30.12.2016

0.00 0.00 55828.00 10230584.00 55828.00 10230584.00

The above data have been complied by the Management and relied upon by the

Auditors.

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166

Note 35:

SIGNIFICANT ACCOUNTING POLICIES

For the Period ended 31.03.2017

1. Basis for Preparation of financial statements:

The financial statements of the company have been prepared in accordance with

the Generally Accepted Accounting Principles in India (Indian GAAP). The Company

has prepared these financial statements to comply in all material respects with the

accounting principles generally accepted in India, including the Accounting Standards

notified under the Companies Act, 2013. The financial statements have been

prepared on an accrual basis and under the historical cost convention and have been

prepared on the basis of going concern concept and under the historical cost

convention. The accounting policies adopted in the preparation of financial statements

are consistent with those of previous year.

The Company is a distribution licensee under Section 14 of the Electricity Act, 2003.

The provisions of the Electricity Act, 2003 read with the rules made there under

prevails wherever the same are inconsistent with the provisions of the Companies

Act, 2013 in terms of Section 174 of the Electricity Act, 2003. Further, in certain areas

where different accounting treatment has been prescribed under GAAP and Electricity

(Supply) (Annual Accounts) Rules 1985 (ESAAR,1985) for an item of income /

expenditure or Asset / Liability, the accounting treatment prescribed under ESAAR

1985 has been adopted as per Section 174 of the Electricity Act, 2003. Further,

assets and liabilities created under applicable electricity laws continue to be depicted

under appropriate heads in the Balance Sheet.

2. Use of Estimates:

In the preparation of the Financial Statements, the Company has made estimates

and assumptions that affect the reported amounts of assets and liabilities on the date

of the financial statements and the reported amounts of revenues and expenses

during the reported period to conform with the generally accepted accounting

principles. Differences between actual results and estimates are recognized in the

period in which results are known / materialized.

3. FIXED ASSETS:

a) Fixed assets acquired / constructed are valued at actual cost of acquisition /

construction or at standard rate as the case may be, during the current year.

b) Assets transferred by M/s. Karnataka Power Transmission Corporation Ltd, (KPTCL)

at the time of transfer of Assets ` 566.77 Cr have been stated at the cost of transfer

indicated by KPTCL in document.

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167

c) In respect of Assets shared with KPTCL, the ownership and title vests with KPTCL

and as such, they are not reflected in the books of accounts of the Corporation. But

the share of maintenance expenditure in respect of such assets is charged to Profit &

Loss account and the accounts system was not enabled to monitor the same.

d) Contribution, Grants and Subsidies towards cost of capital assets have not been

reduced from the cost of assets but have been treated as “Capital Reserve”. The

depreciation pertaining to such fixed assets is withdrawn from the grants for

implementing AS-12.

4. DEPRECIATION:

a) The revised rate of Depreciation stated in Annexure-1 as per notification by

CERC vide Notification No.L-7/145 (160)/2008- CERC Dated 19th January 2009

has been adopted with effect from 01.04.2009.

b) Depreciation is calculated annually based on straight-line method over the useful

life of the asset under historical cost.

c) Depreciation on all assets is provided up to 90% of the original cost. Residual

value of 10% is maintained in the books.

d) Plant and Machinery costing ` 500/- or less individually are written off fully in the

year in which they are installed and put to use.

e) Depreciation is charged from the first year of operation. In case of operation of

the assets for part of the year, depreciation is charged on Prorata basis.

f) In respect of released assets depreciation is charged up to the date of

dismantling and not for the whole year as was done in the earlier years.

g) Rates of Depreciation are not in conformity with the rates prescribed in

Schedule II, of the Companies Act 2013, but followed the CERC Regulations.

5. CAPITAL WORKS IN PROGRESS:

a. Materials issued to Capital Works In Progress are valued at standard rate as

per O & M Schedule of rates for the year. O&M Rates are revised annually.

b. Expenses allocable as Capital Expenditure and incurred by Divisions / Circles /

Zones and Administrative Offices are not capitalized, since the costing methods

and procedures are not fully evolved yet.

c. Interest on borrowing cost is capitalized on the specific projects which take

substantial period of time to get ready for intended use.

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168

6. INVENTORY:

Inventories - Stores and Spares are valued at lower of cost determined on

weighted average basis and net realizable value wherever applicable. Net

Realizable value is the estimated selling price less estimated costs necessary

to make sale.

7. RECOGNITION OF REVENUE SURPLUS:

The Corporation follows the method of recognizing the Revenue surplus (Net Profit

after tax) for the year as per CERC guidelines, at a benchmark of 15.5% ROE.

8. RETIREMENT BENEFITS:

a) Pension & Gratuity are provided based on the rates prescribed by ‘KPTCL &

ESCOMs Pension & Gratuity Trusts’. As per ‘KPTCL and ESCOM’s Pension &

Gratuity Trusts’ Order No. KEPGT/KCO123/P7/2015-16/Cys-58 BANGALORE

Dated 23rd FEB-2016. The Monthly Contribution rates towards Pension and

Gratuity are as below.

Employee

Benefit

From To Rate On

Pension 01.04.2013 31.03.2014 32.01% Basic pay +

D.P and DA 01.04.2014 onwards Until further orders 33.02%

Gratuity 01.04.2013 31.03.2014 6.03% Basic pay +

D.P 01.04.2014 onwards Until further orders 6.06%

b) Leave encashment & family benefit fund is provided based on the cash Basis,

payable as per company’s rules.

9. REVENUE RECOGNITION:

a) Revenue from sale of energy is accounted on accrual basis.

b) The sale of energy is as per the tariff fixed by the Karnataka Electricity


c) Revenue for the year is also adjusted by estimating un-billed revenue of

previous year and current year.

d) Regulatory asset is recognized in the accounts considering the approved KERC

orders and expected truing up orders / benefits based on similar precedents

confirming certainty of realisability of such asset.

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169

10. PROVISIONS FOR BAD & DOUBTFUL DEBTS:

Provision for bad and doubtful debts is made in the accounting Divisions at 4 %

( as per para 4.2 of Annexure V of ESAAR, 1985) on the net balance of Sundry

Debtors for sale of power outstanding as at the end of the year till FY2009-10.

From 2010-11 Policy has been changed as per specially constituted committee

recommendation, the provision for bad and doubtful debts has been provided in the

following manner.

a. To treat the quantum of actual arrears outstanding under permanently

disconnected installations under LT1 (BJ installations consuming more than

18 units), LT2, LT3, LT5 and HT tariff, wherever action has been taken under

“Recovery of dues Act”, as the provision for Bad and doubtful of recovery.

b. Not to consider the dues of IP (irrespective of disconnection), water supply &

streetlight dues as bad and doubtful of recovery.

11. ACCOUNTING OF GRANTS:

a) Grants received for capital expenditure are included in Capital Reserves.

b) Contributions received from customers for capital expenditure are included in

capital reserve.

c) Other Revenue grants are credited to the Profit & Loss Account.

12. POWER PURCHASE:

a) The Power Purchase cost is initially recognized based on the Government of

Karnataka Order No. EN 131 PSR 2003 Dated 10th May 2005 for accounting the

cost of power based on the billings made by Power Generators Pool allocated to


MYSORE by the Government of Karnataka. The variation between the power

allocations by Govt. of Karnataka and the actual power is being reconciled

through energy balancing which is carried out every year and adjustments to the

power purchase cost at KERC approved rate is accounted every year based on

such reconciliation.

b) The KERC in its Tariff Orders determines the transmission charges based on the

installed generation capacity of the state.

13. Borrowing Cost:

Borrowing cost attributable to the acquisition, construction or production of

qualifying assets are added to the cost of those assets up to the date when the

assets are ready for intended use.

12th



170

14. Earnings per Share:

Basic earnings per share are calculated by dividing the net profit for the period

attributable to equity shareholders by the weighted average number of equity shares

outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the

period attributable to equity shareholders and the weighted average number of

shares outstanding during the period are adjusted for the effects of all dilutive

potential equity share if any.

15. Accounting for Taxes on Income:

Tax expense comprises of current and deferred tax, Current income tax is

measured expected to be paid to the tax authorities in accordance with the Income-

tax Act, 1961. Deferred income taxes reflects the net impact of current year timing

differences between taxable income and accounting income for the year and reversal

of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or

substantively enacted at the Balance Sheet date. Deferred tax assets and deferred

tax liabilities are offset, if a legally enforceable right exists to set off current tax assets

against current tax liabilities and the deferred tax assets and deferred tax liabilities

relate to the taxes on income levied by same governing taxation laws. Deferred tax

assets are recognized only to the extent that there is reasonable certainty that

sufficient future taxable income will be available against which such deferred tax

assets can be realised. In situations where the Company has unabsorbed

depreciation or carry forward tax losses, all deferred tax assets are recognised only if

there is virtual certainty supported by convincing evidence that they can be realised

against future taxable profits.

At each Balance Sheet date the Company re-assesses unrecognized deferred

tax asset. The Company recognises all unrecognized deferred tax assets to the

extent that it has become reasonably certain or virtually certain, as the case may be,

that sufficient future taxable income will be available against which such deferred tax

assets can be realized.

Note No. 36 Effect on Accounts:

Pursuant to the observations made by the Comptroller and Auditor General of

India under Sec. 143(6)(a) of the Companies Act 2013 on the accounts of the

company that were approved by the Board of Directors and subject to Statutory Audit

on 11.08.2017, the accounts have been revised with the following impact.

12th



171

(` in Lakhs)

Particulars Prior to

AG’s Audit

After

Supplementary

Audit by AG

Increased(+)/

Decreased(-)

Impact on Profit / loss 2144.37 2144.37 0.00

Impact on Reserves and surplus 6395.50 6395.50 0.00

Trade Payables 284975.94 286800.53 1824.60(+)

Total liabilities 291371.44 293196.03 1824.60(+)

Other Non-Current assets 120193.23 122017.83 1824.60(+)

Total Assets 120193.23 122017.83 1824.60(+)

Sd/- Sd/- Sd/-

(A.Shivanna) (K.T. Mahanthappa) (D.Kiran)

Chief Financial Officer Director (T) Managing Director

PLACE: MYSURU

DATE: 21.09.2017

In terms of our report of

even date attached herewith

For Ganesan and Company


Sd/-

(G.HARIGOVIND)

Partner

Membership No 206563

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172

Revenue Demand

Category 2015-16 2016-17

` in Lakhs % ` in Lakhs %

LT-1 4695.09 1.66 5093.78 1.45

LT-2 37797.23 13.36 44092.46 12.51

LT-3 21456.92 7.58 23574.93 6.69

LT-4 102236.96 36.14 153128.09 43.45

LT-5 8932.38 3.16 9640.00 2.74

WS-LT-6

St.lt 12097.21 4.28 17253.94 4.90

LT-7 1710.18 0.60 2119.28 0.60

HT-1 18986.28 6.71 20406.74 5.79

HT-2 63378.52 22.40 63392.58 17.99

HT Others 2554.33 0.90 3271.48 0.93

Misc 9073.60 3.21 10451.78 2.97

Total 282918.70 100.00 352425.06 100.00

Revenue Collection

Category 2015-16 2016-17


LT-1 3124.10 1.09 3297.09 0.83

LT-2 37497.12 13.04 42943.30 10.86

LT-3 21508.88 7.48 23490.92 5.94

LT-4 102502.35 35.65 153339.19 38.78

LT-5 8976.73 3.12 9525.75 2.41

WS-LT-6

St.lt 13782.41 4.79 50545.00 12.78

LT-7 1754.14 0.61 2255.91 0.57

HT-1 23092.86 8.03 22455.79 5.68

HT-2 63455.47 22.07 62293.53 15.75

HT Others 2693.77 0.94 2941.34 0.74

Misc 9109.44 3.17 22369.12 5.66

Total 287497.28 100.00 395456.94 100.00

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173

CLOSING BALANCE

Category 2015-16 2016-17


LT-1 2487.45 1.70 4284.14 4.12

LT-2 6610.00 4.53 7759.16 7.46

LT-3 403.33 0.28 487.33 0.47

LT-4 32686.02 22.39 32474.91 31.23

LT-5 566.59 0.39 680.84 0.65

LT-6

WS/St.lt

38924.88 26.67 5633.82 5.42

LT-7 -858.71 -0.59 -995.34 -0.96

HT-1 3668.17 2.51 1619.12 1.56

HT-2 578.83 0.40 2439.31 2.35

HT Others 515.85 0.35 950.04 0.91

TOTAL 85582.41 58.63 55333.33 53.21

Misc 60376.56 41.37 48663.71 46.79

Grand

Total

145958.97 100.00 103997.04 100.00

Collection Efficiency (in %)

Category 2015-16 2016-17

LT-1 66.54 64.73

LT-2 99.21 97.39

LT-3 100.24 99.64

LT-4 100.26 100.14

LT-5 100.50 98.81

WS-LT-6 St.lt 113.93 292.95

LT-7 102.57 106.45

HT-1 121.63 110.04

HT-2 100.12 98.87

HT Others 105.46 89.91

Misc Interest 100.40 214.02

Total 101.62 113.89

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174

Sales - Mus

Category 2015-16 2016.17

Sales % Sales %

LT-1 102.75 1.90 102.19 1.63

LT-2 897.60 16.61 951.83 15.20

LT-3 259.57 4.80 274.45 4.38

LT-4 2319.58 42.91 3161.70 50.50

LT-5 136.56 2.53 140.59 2.25

LT-6

Ws&Stl.) 262.86 4.86 323.74 5.17

LT-7 12.95 0.24 14.32 0.23

HT 1413.37 26.15 1291.46 20.63

Total 5405.24 100.00 6260.28 100.00

Customer Base

Category

2015-16 2016-17

Installations

In Nos. %

Installations

In Nos. %

LT-1 497094 17.44 496789 16.76

LT-2 1701751 59.71 1775815 59.90

LT-3 214783 7.54 226005 7.62

LT-4 324144 11.37 345783 11.66

LT-5 37238 1.31 38835 1.31

WS-LT-6

St.lt 42547 1.49 45422 1.53

LT-7 30649 1.08 34307 1.16

HT 1833 0.06 1924 0.06

Total 2850039 100 2964880 100

Closing Balance

` in lakhs

Particulars Principal Interest Total

Closing Balance

as on 31.07.2008 33158.00 10478.00 43636.00

Closing Balance

as on 31.03.2017 31126.25 37196.71 68322.97

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175

Statement showing the details of Capital Work in Progress for FY 2016-17 (Amount in `)

A/c

Head A/C Description

Opening Balance

as on 1.4.2016

Should tally with

MF-2016

CWIP

Incurred

OB+CWIP

Incurred

CWIP

Catogarized

Closing Balance

31.3.2017

Should tally

with MF-2017

14.1407 Lines transformers etc- extension(GP) 16105941.84 35051558.47 51157500.31 33564281.31 17593219.00

14.1437 11KV and below distribution works under

APDP works -402486.00 4019499.00 3617013.00 0.00 3617013.00

14.1438 11KV and below distribution works under

R- APDRP works 662631.00 0.00 662631.00 0.00 662631.00

14.1447 CWIP-RGGVY Works 5725921.00 5997569.00 11723490.00 507086.00 11216404.00

14.1457 R APDRP works 147783444.00 6860034.37 154643478.37 4316591.00 150326887.37

14.1458

CWIP-11KV & below distribution works

under R-APDRP works (IT

Implementation) - Part A

162233277.85 67613967.12 229847244.97 4526918.07 225320326.90

14.1468

CWIP-11KV & below distribution works

under R-APDRP works (System

Improvements)-Part B

377355869.00 670707192.68 1048063061.68 -73658.00 1048136719.68

14.1489 CWIP Incurred under Smart Grid Project 0.00 72933525.00 72933525.00 0.00 72933525.00

14.1506 CWIP - Transmission Lines -

Transformers etc. Improvements (GP) 0.00 116497.00 116497.00 63072.00 53425.00

14.1507 Lines transformers etc improvements-

(GP) 232803447.12 691287879.48 924091326.60 645856466.16 278234860.44

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176


A/c


Opening Balance

as on 1.4.2016

Should tally with

MF-2016

CWIP

Incurred

OB+CWIP

Incurred

CWIP

Catogarized

Closing Balance

31.3.2017

Should tally

with MF-2017

14.1527 CWIP-Providing 25 kva transformer to IP

sets Under Self Execution Project. 9412581.00 36353204.24 45765785.24 25972681.07 19793104.17

14.1607 Reduction of losses in lines 230958523.75 203950286.95 434908810.70 261824918.41 173083892.29

14.1707 Transformers by similar capacities 86843241.18 577628830.07 664472071.25 574664294.71 89807776.54

14.1717 CWIP - DTLMS 0.00 44185172.00 44185172.00 43318877.00 866295.00

14.1727 CWIP - MMS 0.00 35120000.00 35120000.00 0.00 35120000.00

14.2207 SPA schemes 2518074.48 19147.00 2537221.48 55685.00 2481536.48

14.2507 Nirantara Jyothi Scheme(NJY) 610128566.20 1270081852.33 1880210418.53 1529680009.46 350530409.07

14.3007 Village electrification (GP) 570331.09 0.00 570331.09 0.00 570331.09

14.3207 Power supply to IP sets (GP) 14421797.84 135569671.42 149991469.26 124776535.08 25214934.18

14.3257 IP sets under own your transformer

scheme 464501.87 0.00 464501.87 0.00 464501.87

14.3267 IP sets serviced under OYT scheme

(Un-Authorised) 31016962.74 956713466.58 987730429.32 947350325.30 40380104.02

14.3517 Meter Existing of BJ Installations 172512.00 0.00 172512.00 0.00 172512.00

14.3767 CWIP Draught Relief Works 38308.00 0.00 38308.00 0.00 38308.00

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177


A/c


Opening Balance

as on 1.4.2016

Should tally with

MF-2016

CWIP

Incurred

OB+CWIP

Incurred

CWIP

Catogarized

Closing Balance

31.3.2017

Should tally

with MF-2017

14.3907

CWIP expenditure incurred under

Integrated Power Development Scheme

(IPDS)

0.00 4083444.00 4083444.00 0.00 4083444.00

14.3917


Deendayal Upadhyaya Gram Jyothi

Yojana (DDUGJY)

0.00 42923470.00 42923470.00 0.00 42923470.00

14.4007 Service connections 143072854.86 474638277.65 617711132.51 486032906.39 131678226.12

14.4017 Metering of IP sets 1098187.00 64455.00 1162642.00 0.00 1162642.00

14.5027 Buildings 38130928.90 89117794.00 127248722.90 87215882.00 40032840.90

14.7087 Furniture and fixtures 7700.00 4369464.48 4377164.48 4273892.48 103272.00

14.7088 Furniture and fixtures - RAPDRP 920064.00 -22272.00 897792.00 897792.00 0.00

14.8097 Office equipments 13231318.28 34414787.12 47646105.40 45415938.56 2230166.84

14.8098 Office equipments - RAPDRP 2432295.07 371481.58 2803776.65 2803776.65 0.00

14.8107 Tools and tackles 3466613.23 16776251.42 20242864.65 15834094.33 4408770.32

14.8117 Mobile Phones 0.00 990577.00 990577.00 990577.00 0.00

14.9107 CWIP - Survey and Investigation

Expenses on Projects 3475000.00 -3475000.00 0.00 0.00 0.00

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178


A/c


Opening Balance

as on 1.4.2016

Should tally with

MF-2016

CWIP

Incurred

OB+CWIP

Incurred

CWIP

Catogarized

Closing Balance

31.3.2017

Should tally

with MF-2017

14.9458

Capital Expenditure categorized R-

APDRP-11KV & below Distribution works

(IT implementation Part A

-156426760.87 10418148.20 -146008612.67 62440192.30 -208448804.97

14.9468

Capital Expenditure categorized

R-APDRP-11KV & below Distribution work

(System Improvements -Part B

-309202181.00 -235452989.00 -544655170.00 319398844.68 -864054014.68

14.9489 Capital Expenditure Categorised under

Smart Grid Project. 0.00 0.00 0.00 67343091.00 -67343091.00

14.9917


Deendayal Upadhyaya Gram Jyothi

Yojana (DDUGJY)

0.00 0.00 0.00 36754527.00 -36754527.00

Total A 1669019465.43 5253427242.16 6922446707.59 5325805596.96 1596641110.63

B = 55.1007 Total 0.00 0.00 0.00 967076050.87 0.00

Grand Total 1669019465.43 5253427242.16 6922446707.59 6292881647.83 1596641110.63

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179

Statement of Material Stock Account A/c 22.6107

(` in lakhs)

Sl.

No.

A/c

Code Account Head 2016-17 2015-16

A. 22.6107 Opening Stock 6704.53 6515.38

B RECEIPTS

1 22.2107 Material Purchases 7047.67 14157.96

2 22.3607 Material returned by Contractors 22.45 44.90

3 22.3707 Accessories (Other than Main Assets returned

on dismantling of assets) 166.80 123.58

4 22.4107 Material transferred inwards 1815.30 1758.74

5 22.4117 Material received from VVNL 0.00 0.00

6 22.4127 Material received from KPTCL / Other ESCOMS 0.00 3.29

7 22.4607 Material Manufactured inwards 0.00 0.00

8 22.4617 Fabricated materials returned 0.00 0.00

9 22.5107 Material Stock Adj. A/c (Dr.) 4.45 2.53

10 22.7317 Cost of Material & Labour in TPs works 0.00 0.00

TOTAL RECEIPTS 9056.67 16091.00

C OPENING STOCK + RECEIPTS 15761.20 22606.37

D I S S U E S

1 22.3107 Material issued capital 6747.84 10985.30

2 22.3117 Material issued (Imprest) 0.00 0.00

3 22.3207 Material issues (O&M) 2101.82 3006.13

4 22.3407 Material issued to Contractors 81.44 0.00

5 22.3607 Material returned by Contractors 34.97 0.00

6 22.4207 Material transferred outward 1815.34 1757.18

7 22.4217 Material transferred to VVNL 0.00 0.00

8 22.4227 Material transferred to KPTCL / Other ESCOMS 0.87 0.00

9 22.5107 Material Stock adjustment A/c (Cr.) 13.57 0.00

10 22.7607 obsolete materials in stock 0.00 73.66

TOTAL ISSUES 10795.84 15914.94

E 22.6107 CLOSING BALANCE OF STOCK (C-D) 4965.36 6704.53

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180

Average Realization Rate From Sale Of Power 2016-17

(Amount in `)

Account Head-LT Category Tariff

Account Code No.of

Consu

mers

Units Sold Average

Realisation

Rate Per

Unit (`)

Opening Revenue

Demand as per

DCB

Add: Net

provision for

Unbilled

Revenue

Less:

Provision for

Withdrawal

of Revenue

Revenue

Demand as

per Accounts

Collection for

the Year 16-17

Closing

Balance Demand

Series

Closing

Balance

Series

Units

(MU)

% of

Units

Sold

balance as on

01.04.2016

BJ/KJ-Tariff subsidy LT-1 61.6267 28.6267 367500 35.19 0.56 6.79 0.00 238952864.46 0.00 0.00 238952864.46 238952864.46 0.00

BJ/KJ LT-1 61.1017 23.1017 129289 66.99 1.07 4.08 266604028.65 269598637.53 4072371.21 60887.00 273610121.74 90001556.41 450212593.98

Dom.Ltg, Non-Dom, Non-Com Ltg &

Govt. Hospital Ltd, Dom Combined

Ltg.(Aeh), Non-Dom, Non-Coml. Comb.

Ltg. & Htg. Motive Power, & Govt.

Hospitals for Handicapped Orphans,

aged & Institute & Pvt. Professional &

Other Pvt.Edu.Inst.

LT-2

a & b

61.1027

61.1037

61.1117

61.1127

23.1027

23.1037

23.1117

23.1127

1775815 951.83 15.20 4.67 810105470.92 4397172969.40 44518945.27 101923.00 4441589991.67 4283173751.69 968521710.89

Comml.Ltg. Heating & Motive Power LT-3 61.1157

61.1167

23.1157

23.1167 226005 274.45 4.384 8.66 124911118.47 2353789158.02 22698464.30 89618.00 2376398004.31 2346021512.64 155287610.14

Irrigation pumpsets, Lift Irrigation

Schemes/ Societies(upto & inclusive of

10HP)

LT-4a 61.1187

61.6277 23.1187 338682 3143.13 50.207 4.87 3774627739.55 15242489264.68 49755961.28 -201706.60 15292446932.56 15244194930.47 3822879741.64

Irrigation pumpsets, Lift Irrigation

Schemes/ Societies(Above 10HP) LT-4b 61.1217 23.1217 195 1.02 0.016 5.56 21439304.21 5765189.97 -131035.24 -13663.00 5647817.73 5783707.49 21303414.45

Private Horticultural Nuirseries, Coffee,

Tea, Coconut & Arecanut Plantations LT-4c

61.1207

61.1287

23.1207

23.1287 6906 17.56 0.281 3.74 102983801.04 64318829.32 802936.56 -636258.10 65758023.98 43849954.77 124891870.25

Industrial, Non-Industrial Htf. & Motive

Power Including Lighting

LT -5 a

to d

61.1297

61.1307

61.1317

61.1337

23.1297

23.1307

23.1317

23.1337

38835 140.59 2.246 6.86 95370644.36 962142407.34 2182708.01 0.00 964325115.35 950585811.58 109109948.13

Water Supply-Sewarage Pumping-

VP/TP & Others LT-6a 61.1407 23.1407 24228 220.22 3.518 4.89 2647798083.63 1059441388.03 16400101.59 0.00 1075841489.61 3356718905.64 366920667.60

Public Lighting- VP/TP & Others LT-6b 61.1417 23.1417 21194 103.51 1.653 6.47 1292391307.55 661979571.36 7536607.75 0.00 669516179.10 1694368017.99 267539468.67

Temporary Power Supply LT-7 61.1457 23.1457 34307 14.32 0.229 14.84 -77324507.85 211756660.48 823670.82 0.00 212580331.31 225469651.55 -90213828.09

12th



181


Account Code No.of

Consu

mers

Units Sold Average

Realisation

Rate Per

Unit (`)

Opening Revenue

Demand as per

DCB

Add: Net

provision for

Unbilled

Revenue

Less:

Provision for

Withdrawal

of Revenue

Revenue

Demand as

per Accounts

Collection for

the Year 16-17

Closing

Balance Demand

Series

Closing

Balance

Series

Units

(MU)

% of

Units

Sold

balance as on

01.04.2016

BRP II arrears recovered from

Permanantly disconnected consumers 61.1527

0.000 0.00 0.00

0.00

0.00

TOTAL OF LT

2962956 4968.82 79.371 5.16 9058906990.52 25467406940.60 148660731.54 -599199.70 25616666871.83 28479120664.69 6196453197.66

Public Water Supply & Sewarage

pumping HT-1 61.2507 23.2507 125 418.24 6.681 4.90 527758417.39 2035432128.92 11973583.70 0.00 2047405712.61 2239079815.63 336084314.38

0.00 0.00 0.00

0.00 0.00 0.00

Industrial, Non-Industrial, Non-

Commercial & Railway Traction HT-2a 61.2557 23.2557 876 634.73 10.139 7.71 564180493.95 4914434052.86 -23442154.97 0.00 4890991897.88 4822760675.80 632411716.03

Commercial HT-2b 61.2507 23.2567 566 117.24 1.873 9.17 86249980.26 1062854638.66 12623196.53 0.00 1075477835.19 1048299475.03 113428340.43

Hospital & Educational Institutions HT-2c 61.2547 23.2837

23.2847 237 48.07 0.768 7.37 37411219.57 351256045.85 3149804.52 0.00 354405850.37 342956158.61 48860911.33

Irrigation & Agricultureal Farms, Private

Horticultural Nurseries, Coffee & Tea &

Arecanut Plantations.

HT-3

a&b 61.2557

23.2607

23.2627 90 66.02 1.055 2.93 62761906.87 195166573.00 -1547452.61 64281.00 193554839.38 159851785.49 96464960.76

Residential Apartments & Hospitals. HT-4 61.2567 23.2807 12 3.73 0.060 6.28 4383334.29 23169291.88 289214.74 0.00 23458506.62 24009421.41 3832419.50

Sundry Debrs for Sale of power- HT-5

Temporary Supply HT-5

61.2837

61.2847 23.2707 18 3.42 0.055 31.95 8670134.24 108141651.81 1283296.30 0.00 109424948.11 109021535.34 9073547.01

TOTAL OF HT

61.2607

61.2627 1924 1291.46 20.629 6.73 1291415486.57 8690454382.98 4329488.19 64281.00 8694719590.17 8745978867.30 1240156209.44

TOTAL OF (LT+HT)

61.2807

2964880 6260.28 100.000 5.48 10350322477.09 34157861323.57 152990219.73 -534918.70 34311386462.00 37225099531.99 7436609407.10

FAC

61.2707 23.2917

39416610.06 38925548.34 4324637.00

43250185.34 45166779.28 37500016.12

Cross Subsidy

0.00 98265250.54 0.00 0.00 98265250.54 98265250.54 0.00

Misc. Receipts From Consumer (Other

than Interest) 0.00 150753141.58 0.00 0.00 150753141.58 150753141.58 0.00

Less: Provision for Withdrawal of

revenue Demand 61.2917 23.8

15797455.51 0.00 0.00 2017935.84 -2017935.84 0.00 13779519.67

Less: Provision for Doubtful Dues from

Consumers 23.9

569461361.20 0.00 0.00 323123220.48 -323123220.48 0.00 246338140.72

12th



182


Account Code No.of

Consu

mers

Units Sold Average

Realisation

Rate Per

Unit (`)

Opening Revenue

Demand as per

DCB

Add: Net

provision for

Unbilled

Revenue

Less:

Provision for

Withdrawal

of Revenue

Revenue

Demand as

per Accounts

Collection for

the Year 16-17

Closing

Balance Demand

Series

Closing

Balance

Series

Units

(MU)

% of

Units

Sold

balance as on

01.04.2016

Subsidy receivable from GOK towards

BJ/KJ waiver amount and additional

subsidy & Additional Tariff Subsidy

amount receivable from GOK (126.69

Crs)

61.2507 28.6257

1287488395.79 0.00 906900000.00 0.00 906900000.00 0.00 2194388395.79

Subsidy receivable from GOK towards

BJ/KJ 61.2547 28.6267

0.00 238952864.46 0.00 0.00 238952864.46 213900000.00 25052864.46

Subsidy receivable from State Govt.

towards free supply of power to IP Sets

upto 10HP

61.2557 28.6277

543988826.10 15244382114.97 0.00 0.00 15244382114.97 12755500000.00 3032870941.07

LT+HT+MISC

61.2567

2964880 6260.28 100.000 5.48 10389739087.15 34445805264.03 157314856.73 -534918.70 34603655039.46 37519284703.38 7474109423.23

Misc. Receipts From Consumer

(Interest)

61.2607

61.2627 23.7007

5968045593.35 398340053.33 0.00 0.00 398340053.33 2441826489.48 3924559157.20

Sundry Debtors for electricity Tax

46.3007 23.3017

23.3027 431111874.52 1194507611.02 0.00 0.00 1194507611.02 1160423502.56 465195982.99

12th



183

IP-Set & BJ/KJ Subsidy Statement for 2016-17

` In Lakhs

Sl.

No. Particulars

No. of Installations Consumption (In Mu) Opening

Balance

(As on

01.04.2016)

Demand Subsidy

Released

by GoK for

2016-17

Closing

balance

as on

31.03.2017

Metered Un -

Metered Total Metered

Un -

Metered Total Metered

Un -

Metered Total

1 IP-Set ( Upto 10 HP) 13074 322816 335890 70.96 3072.17 3143.13 5439.89 3429.42 149014.40 152443.82 127555.00 30328.71

2 BJ/KJ ( UP to 18 units

PM) 343172 0.00 343172 35.19 0.00 35.19 0.00 2389.53 0.00 2389.53 2139.00 250.53

3 BJ/KJ waiver subsidy 205.88

205.88

4

Gap to be paid by GOK

for FY 2012-13 as per

KERC truing -up Order

12669.00 12669.00

5

Additional Subsidy to be

received as per

Government order No.En

67 PSR 2017 Bangalore

Dated 31.07.2017

9069.00 9069.00

Total 356246 322816 679062 106.15 3072.17 3178.32 27383.77 5818.95 149014.40 154833.35 129694.00 52523.12

Note:- In addition to the above, the amount of ` 1862.73 lakhs refunded in respect of IP set payment made by farmers from 01.04.2001 to 31.03.2003 is

yet to be receivable from GoK

Govt. Press, Vikasa Soudha Unit, Bengaluru. W.D. 173 / P5

12th annual accounts for the year 2016-17 orders 2018/tariff... · profile of cesc chamundeshwari...

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