directors' report rvunl · unit-6 was declared on commercial operation (cod) on 2.04.2019. ii)...
TRANSCRIPT
th19 ANNUAL REPORT2018-19
RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.(A Government of Rajasthan Undertaking)
List of Directors1. Sh. P. Ramesh, IAS
(DIN-03551794)
2. Sh. Kunji Lal Meena, IAS - Director(DIN-05220511)
3. Dr. Prithvi Raj, IAS - Director(DIN-03340566)
4. Ms. Renu Jaipal, IAS - Director(DIN-08567925)
5. Sh. Shyam Swaroop Meena - Director (Technical)(DIN-03319346)
6. Sh. Prahalad Sahai Arya - Director (Projects)(DIN-07646220)
7. Sh. M.K. Khandelwal - Director (Finance)Chief Controller of Accounts (HQ-I)] holding additional charge
- Chairman & Managing Director
JT. DIRECTOR (CORP. AFF.)-CUM-COMPANY SECRETARYSh. S.G.V.S. Subrahmanyam
(FCS-3962)
CHIEF CONTROLLER OF ACCOUNTSSh. Y.K. UPADHYAY
STATUTORY AUDITORSM/s B.L. Ajmera & Co.
Chartered Accountants
Malji Chhogalal Trust Building, Mirza Ismail Road
Jaipur- 302001 (India)
DEBENTURE TRUSTEEAXIS TRUSTEE SERVICES LTD.
(A wholly owned Subsidiary of Axis Bank)
Corporate identity Number (ClN) U74999MH2O08PLC182264
REGISTERED OFFlCE: The Ruby, 2nd Floor, SW-29, Senapati Bapat Marg,
Dadar West, Mumbai-400028
BANKERState Bank of India
REGD. OFFICE & HEAD OFFICECIN- U40102RJ2000SGC016484
Vidyut Bhawan, Janpath, Jyoti Nagar, Jaipur-302005
Phone : 0141-2740692, Fax : 0141-2740633
Website : energy.rajasthan.gov.in/rvunl
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
1. Board’s Report 1-49
2. Independent Auditors' Report on Standalone Financial Statements(SFS) 50-65
3. Standalone Financial Statements along with Significant Accounting 66-135
Policies & Notes on Accounts
4. Comments of the Comptroller and Auditor General of India on SFS 136-137
5. Management’s Response to CAG’s Comments-SFS 138
6. Independent Auditor’s Report on Consolidated Financial statement (CFS) 141-153
7. Consolidated Financial Statements along with Significant Accounting 154-225
Policies & Notes on Accounts
8. Comments of the Comptroller and Auditor General of India on CFS 226-227
9. Management's Response to CAG's Comments on CFS 228
10. Statement Containing Salient Feature of the Financial Statements 229-230
of Subsidiary Companies/Joint Ventures (AOC-1)
Subsidiary Companies
11. Annual Report of Chhabra Power Ltd. for the year 2018-19 233-265
12. Annual Report of Dholpur Gas Power Ltd. for the year 2018-19 267-300
13. Annual Report of Giral Lignite Power Ltd. for the year 2018-19 301-368
S.No. Particulars Page Nos.
Content
1
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
BOARD’S REPORT
To the Members,
Your Directors are pleased to present the Nineteenth Annual Report on the business and
operations of the Company and the Audited Statement of Accounts for the financial year ended
31st March, 2019.
1. Highlights of the period under review
Your Company has earned net profit of Rs.48.78 Crores (Standalone)for the financial year 2018-19
as against Rs. 547.28 Crores in the previous financial year. The Company has taken various
measures for improving performance of its Power Stations and due to all out efforts, the Company
was able to turn around and increase its profitability during the current financial year.
During the period under review, the Commercial Operations (COD) of the Unit-5 (660 MW) and
Unit-6 (660 MW) of Chhabra Super Critical Thermal Power Project were declared on 09.08.2018
and 02.04.2019, respectively.
Work of the Supercritical units at Suratgarh is also on full swing for commissioning of the same.
Financial Results (Standalone & Consolidated)
The summarised financial results (Standalone& Consolidated) of the Company for the year ended
31st March 2019 are as under -
(Rs. in Crores)
Standalone Consolidated
Particulars Current Year Previous Year Current Year Previous Year
2018-19 2017-18 2018-19 2017-18
Revenue from Sale of Power* 14,487.44 12,784.11 14,438.43 12,784.11
Revenue Subsidies & Grants and 83.15 59.17 83.28 61.54
other Income
Total Income 14,570.59 12,843.28 14,521.71 12,845.65
Cost of Generation of Power* 8,738.20 7,278.43 8,758.68 7,279.18
Other Expenditure* 818.81 682.01 830.78 691.41
Profit/(Loss) before depreciation, 5,013.58 4,882.84 4,932.25 4,875.06
interest and tax
Less: i) Depreciation 1,319.31 1,172.96 1,396.84 1,250.54
ii) Interest, finance charge 3,098.23 2,686.28 3,258.05 2,836.92
and lease rentals*
Profit/ (Loss) for the period 596.04 1,023.60 277.36 787.60
Add/Less: Exceptional Items -- -- -- --
Profit/ (Loss) before extraordinary 596.04 1,023.60 277.36 787.60
item &tax
Add/Less: Extra ordinary items (457.62) (-)416.34 (5.45) (-) 5.45
Profit/ (Loss) before Prior period 138.42 607.26 271.91 782.15
item & tax
2
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
Add/Less: Prior period credits/
(expenses)
Profit/ (Loss) before tax 138.42 607.26 271.91 782.15
Less: Provision for Tax -- -- -- --
Profit / (Loss) after tax for the period 138.42 607.26 271.91 782.15
from continuing operations
Add/ Less: Share in Profit of Joint -- -- 4.16 0.88
Venture
Profit & Loss for the year 138.42 607.26 276.07 783.03
Add/Less: Other Comprehensive (89.64) (-)59.99 (89.64) (-)59.99
Income
Total Comprehensive Income 48.78 547.28 186.43 723.04
(Comprising Profit/ (Loss) and other
Comprehensive Income for the Period)
Appropriations NIL NIL NIL NIL
* Net of amount capatalized
2. Transfer to Reserves & Dividend
No profits being available for appropriationafter adjustments of accumulated losses, the Board is
unable to recommend payment of dividend for the year nor is proposing to carry any amount to the
reserves.
3. Power Plant Performance
The total installed capacity of various Thermal & Hydel Power Stations owned and run by your
Company presently is 7277.35 MW(including 2x125 MW Giral Lignite TPS operated by Giral
Lignite Power Limited, a wholly owned subsidiary of RVUN)and a list of Power Stations/ Units is
placed at Annexure-I. During the year, annual Plant Load and Availability Factors achieved by
Kota TPS were at 72.92% (87.52%), Suratgarh TPS at 54.56%(91.60%), Chhabra TPS at 83.22%
(88.58%), Kalisindh TPS at 52.80%(59.75%),Dholpur Gas TPS at 0.72% (81.06%) and Ramgarh
GTPS at 42.12% (41.79%).
A total of 31785.13 Million Units (27008.52 MU in 2017-18) of electricity was generated during the
year 2018-19. A total of 28927.00 Million Units (24543.38 MU in 2017-18) were sold to the three
Power Distribution Companies of the State viz., Jaipur Vidyut Vitran Nigam Ltd. (Jaipur Discom),
Ajmer Vidyut Vitran Nigam Ltd. (Ajmer Discom) and Jodhpur Vidyut Vitran Nigam Ltd. (Jodhpur
Discom), as per the Power Purchase Agreement (PPA) with the aforesaid three Discoms, at a pre-
determined ratio, after reducing the auxiliary power consumption. The aforesaid generation
figures exclude sale of infirm power of new/ extension units commissioned during the year under
review which has been capitalized.
-- -- -- --
3
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
4. Fuel Supply Management
i) Coal:
The major requirement of coal of RVUN’s Power Plants is met from SECL & NCL, the subsidiaries of
Coal India Ltd., through Fuel Supply Agreements (FSA).Besides, for Units-3 to 6 of Chhabra TPS,
Units-1&2 of Kalisindh TPS and Units-7&8 of Suratgarh TPS, RVUN has obtained allocation of
Coal blocks for captive mining in the State of Chhattisgarh. The details of the same are as under:-
A. Parsa East and Kante Basan coal block: All clearances & approvals have been got re-
validated subsequent to re-allocation of the block in March, 2015 and Mine Lease
Agreement was executed on 19.04.2017. Presently, the block is under operation and
coal is being dispatched to RVUN’s Power Stations. Environmental Clearance for
enhancement of mine capacity from 10 MTPA to 15 MTPA has been granted by Ministry
of Environment, Forest and Climate Change (MoEF&CC), GoI, on 10.08.2018. Peak
Rated capacity mining @ 15 MTPA has been achieved in FY 2018-19.
B. Parsa coal block: Gazette Notification by GoI was published for Section 11(1) under Coal
Bearing Act (A&D) 1957 to vest acquisition of whole land & all rights in respect of ‘Parsa’
coal block in favour of RVUN on 02.08.2018 and Chhattisgarh Government issued
Gazette Notification for the purpose on 20.09.2018. As per Coal Bearing Act (A&D) 1957,
the land shall be deemed to transfer to the allottee after the above notification and
Mining Lease from MoC is not required. Forest Advisory Committee (FAC) in its meeting
held on 15.01.2019 recommended for In-principal approval for Stage-I Forest Clearance
of ‘Parsa Coal Mine’. Accordingly, Forest Clearance Stage-I has been granted on
13.02.2019. Also, MoC vide letter dated 24.04.2019 issued an amendment in the
condition no. (v) of the Stage –I Forest Clearance. Expert Appraisal Committee of
MoEF&CC in its 43rd meeting held on 21st February, 2019 recommended for
environmental clearance to Parsa Opencast Coal Mining Project of 5 MTPA and Pit Head
Coal Washery of 5 MTPA in an area of 1252.447 ha.
C. Kente Extension coal block: MoE&F recommended in-principle approval for
prospecting of Coal vide letter dated 19.12.2017, subjected to various conditions
stipulated in the recommendation letter. PL deed has been executed between RVUNL
and DM, Surguja on 23.08.2018. Exploration is completed and Geological Report has
been prepared and submitted to various concerned authorities on 11.06.2019. Mining
Plan has also been prepared and is in the process of further submission to MoC for its
approval.
ii) Gas:
Gas Supply at Ramgarh GTPP:-
M/s GAIL is supplying 0.70 mmscmd natural gas from gas fields of OIL, 0.05 mmscmd from gas
fields of ONGC and 0.2 mmscmd from gas fields of Focus Energy for 110.5 MW Units, Stage I & II.
M/s GAIL is also supplying 0.75 mmscmd natural gas of high GCV for 160 MW, Stage-III Units. The
supply of 0.75 MMSCMD gas has been commenced from Oct.2012 for Unit-3. The ‘Heads of
Agreement’ have been signed for supply of 0.75 MMSCMD gas for upcoming 160 MW, Stage-IV
extension Unit with GAIL. Negotiations for finalization of prices for the gas are still under process.
4
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
Gas supply at Dholpur CCPP:-
The production at PMT gas fields & KG D-6 is declining year by year, therefore availability of gas
has been reduced against the Contracted Quantity leading to reduced availability from the plant.
5. Progress in Ongoing Projects
As reported earlier, the Company has taken up two Supercritical technology based Power Projects
(2x660 MW each) as Extension Projects of the existing Thermal Power Stations at Suratgarh and
Chhabra and also 160 MW Extension Project of Ramgarh GTPP. Progress of these projects is as
under:-
i) Chhabra Supercritical Project (2x660 MW Units-5&6 Stage-II): Unit-5 was declared
on commercial operation (COD) on 09.08.2018 and continuously generating electricity.
Unit-6 was declared on commercial operation (COD) on 2.04.2019.
ii) Suratgarh Supercritical Project (2x660 MW Units–7&8 Stage–V): Major construction
for Unit-7 such as Boiler, Turbine, ESP have been completed. Boiler drainable Hydro-
Test has been carried out and non–drainable has been successfully completed. Boiler
lighted up on 27.4.2018.
For Unit-8 also, major construction activities such as Boiler, Turbine, ESP have been
completed. Boiler drainable Hydro-Test has also successfully completed and boiler
lightup (test) on 28.9.2017.
iii) Ramgarh Gas Based Exp. Power Project (160 MW, Stage-IV):
Execution of the 160 MW Stage–IV of Ramgarh Gas TPP has been kept on hold due to
non-finalization of gas prices with M/s Focus Energy (P) Limited and M/s GAIL (India)
Limited.
6. New/ Future Power Projects
The State Government has earlier entrusted the Company to create additional Generation
Capacity of 4950 MW by setting up the following new Power Projects. The State Government is now
reviewing these projects considering the anticipated power demand in coming years and also
exploring the possibility of developing some of these projects under Case-2 basis, etc. Preliminary
activities of these projects have been initiated earlier but are now under hold:-
i. Banswara coal based TPP (2x660 MW Units-1&2)
ii. Kalisindh TPS Extn. Project (2x660 MW Stage–II, Units-3&4)
iii. Suratgarh TPS Extn. Project (2x660 MW Stage–VI, Units-9&10)
iv. Gas based projects at Dholpur (330 MW), Kota(330 MW) &Chhabra (330 MW)
In the meanwhile, the Coordination Committee of State Power Sector Companies, in its
meeting held on 20.06.2018, advised RVUN to set-up 2x660 MW Supercritical Units at pit
head instead of Units-3&4 of Kalisindh TPP, based on the recommendations of Task Force
constituted by the State Government. RVUN is examining various issues for the purpose.
5
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
7. Restructuring & Disinvestment
Chhabra TPS
Process was kept on hold because of issues in transfer of the Power Station from the State
Sector to Central Sector. Simultaneously, open competitive bidding process was also put on
hold due to issues in transfer of coal linkages.
Further, in pursuance to decision taken in the meeting under the chairmanship of Chief
Secretary, GoR, a Cabinet Memo “to review the decision of Disinvestment for ChhabraTPP”
has been submitted to GoR on 01.03.2019.
The State Cabinet reviewed their earlier decision in the meeting held on 26.06.2019 and
decided not to disinvest Chhabra TPP (Units-1 to 6).
Kalisindh TPS
Process was kept on hold because of issues in transfer of coal linkages.
Further, in pursuance to decision taken in the meeting under the chairmanship of Chief
Secretary, GoR, a Cabinet Memo “to review the decision of Disinvestment for KalisindhTPP”
has been submitted to GoR on 01.03.2019.
The State Cabinet reviewed their earlier decision in the meeting held on 26.06.2019 and
decided not to disinvest Chhabra TPP (Units-1 to 6).
Giral Lignite Power Limited
Five applicants have submitted EoIs and were shortlisted for issue of Request for Proposal
and Confidential Information Memorandum. Shortlisted bidders completed due diligence
upto 28.02.2017. Bidders sought some amendments in draft Share Purchase Agreement
(SPA) which were discussed and decided by Disinvestment Committee and subsequently
Board of Directors of RVUN have approved the same on 14.12.2017.
Draft Cabinet Note with final Share Purchase Agreement (SPA) submitted to State
Government on 04.01.2018 and after incorporating the observations of Finance Department,
GoR resubmitted on 30.01.2019 which is under submission to State Government.
In the meeting held under chairmanship of Chief Secretary, GoR, it was not considered
prudent to incur further capital cost for revival of GLTPS units. Further, it was decided that
the ongoing disinvestment process for GLPL may be completed by RVUN by following
prescribed procedures, so that the fair market value can be discovered. The transaction is
under process.
8. Environment
RVUN continued to take adequate measures to control pollution and ensure atmospheric
emissions within the prescribed limits of Environment (Protection) Act, 1986 at all its Coal/ Lignite
based Thermal Power Stations. RVUN is committed to implement the revised emission norms
notified by MoEF&CC, GoI, vide Gazette Notification dated:07.12.2015 in all its Coal/ Lignite
based Thermal Power Plants by means of installation of De_Sox Technologies (Flue Gas
Desulphurisation Units), De-NOx Technologies (SCR/ SNCR ) and ESP Retrofits to control the key
pollutants viz. SO2, NOxand Particulate Matter(PM) respectively. Similarly, several industries like
cement, bricks, blocks, tiles manufacturer, etc. have been encouraged for utilizing the ash
generated from all the existing as well as upcoming Thermal Power Stations and long term
Agreements/ MoUs have been executed for the purpose. A fly ash policy has been formulated to
6
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
ensure smooth disposal thereof after expiry of the existing Agreements/ MoUs. The Company is
setting up highly efficient Supercritical Power Projects, so as to ensure lower emissions and
greener environment.
RVUN affirms its commitment for environment and to deal proactively with Climate change issues
by efficient & optimum use of natural resourcing & equipments, adoption of latest technologies,
minimization of wastes, maximum ash utilization and ensuring green belt all around the plant for
maintaining the ecological balance. Company has also adopted a comprehensive ‘Corporate
Environmental Policy (CEP)’.
Similarly, all efforts are being made to protect the environment at Parsa East & Kente Basan Coal
blocks of RVUN in the State of Chattisgarh, viz., plantation; top soil conservation for Biological
Reclamation; maintenance of proper dust extraction/ suppression systems; and coal extraction
through surface miners having minimum dust emission.
9. Report on Corporate Social Responsibility
Your Company has also formulated a comprehensive ‘Corporate Social Responsibility Policy (CSR)’
which provides for the financial contribution to implement CSR activities/ works in its ongoing as
well as future Power Projects and Power Stations and the Board of Directors approved the same on
10.02.2011, before the coming into force of the new Companies Act, 2013. Being a State
Government owned company, the above CSR Policy has been approved by the State Government
on 20.05.2011 and ‘CSR Implementation Committees’ have been formed at each Power Station/
Project comprising of Members under the Chairmanship of the concerned District Collector. The
CSR Implementation Committee has started functioning for implementation of CSR activities/
works, as stated in the Policy. Abstract of the CSR Policy approved by the Board of Directors &
State Government is enclosed as Annexure-II. Major CSR works undertaken by RVUN are as
under:
i. CSRI Committee for Suratgarh Super Thermal Power Station provided Bus facility for
ferrying children from nearby 14 villages to schools in SSTPS. An amount of Rs.40.63 lacs
spent during the FY 2018-19.
ii. An amount of Rs. 8.44 crores spent during FY 2015-16, FY 2016-17,FY 2017-18& FY
2018-19 on various activities like construction of roads in nearby villages, supply of
potable water, providing Solar street lights, construction of railway under bridge and
agriculture connections by the CSRI Committee of Suratgarh Super Critical Thermal Power
Station.
iii. Expenditure of Rs.1619.41 lacs spent upto FY 2018-19, out of which an amount of Rs.530
lacs was spent for FY 2018-19 for Various works of Infrastructure Development to be
carried out by PWD, Chhabra and Baran, an amount of Rs.15 lacs was spent for
Implementation of e-learning for more interesting and innovative education in 105 nos.
Govt. Schools of District Baran which have facilities of I.C.T. infrasture, through Project
Utkarsh for three F.Y. 2016-17,2017-18 and 2018-19, an amount of Rs. 70 lacs was spent
on Various works regarding environment as Crop Residue Programme, Pasture Land
Development programme, Community cattle shade, Community Park by CSRI committee
of Chhabra Super Critical Thermal Power Project.
iv. Expenditure of Rs.2354.34 Lacs spent upto FY 2018-19 for Infrastructure development,
education, Generation of employment and capacity, environment and miscellaneous other
7
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
sports activities as approved by CSRI committee of Kalisindh Thermal Power Project,
Jhalawar. In addition to above, CSR amount was utilized for Chandra bhaga fair & Umang
festival held at Jhalawar.
10. Share Capital
The State Government has continued with its equity support for all the ongoing Projects of the
Company. The Authorized share capital of the Company is presently Rs.11,000 Crores. The paid-
up share capital of the Company has increased to Rs.1,00,67,95,00,000/- by allotment of
39,25,30,000 equity shares of Rs.10/- each aggregating to Rs. 3,92,53,00,000/- to the Hon’ble
Governor of Rajasthan during the year 2018-19.The present paid-up share capital of the Company
is Rs.1,02,12,34,00,000/-.
11. Loans & Bonds
The Company has tied up financing for all the ongoing Power Projects with Power Finance
Corporation Ltd. (PFC) and Rural Electrification Corporation Ltd. (REC). Financing for the
upcoming Supercritical Power Projects is also being tied up, for which PFC has already sanctioned
60% of the total borrowings as per the Project cost. The additional financing to meet the revised/
enhanced Project cost of some of the Projects has also been tied up. The Company has made
adequate arrangements to meet its working capital requirements through PFC, Commercial
Banks, REC, etc. During the period under review, the Borrowing Power of the Company has been
increased from Rs.38,000 to Rs.46,000 at the EGM held on 9th April 2018 and subsequently
increased from Rs.46,000 crores to Rs.55,000 crores at the EGM held on 27thMarch 2019.
The total Long Term borrowings as at 31st March, 2019 were at Rs. 24,578.05 Crores and the Short
Term borrowings on that date were at Rs. 20,072.70 Crores.
12. Human Resources
The Company takes pride in its well trained, efficient, experienced and committed force of
Engineers, Officers, staff and workers working at the various Power Plants and other Offices. The
manpower structure of the Company was re-organized and 173 new posts have been created. New
recruitments have been made during the period to staff the newly commissioned Power Stations as
well as Projects under construction. In order to optimize the manpower at all the Power Stations of
the Company, several measures are being taken, including adoption of a comprehensive Transfer
Policy, apart from various incentives & deterrents. During the period under review, Personal &
Administration (P&A) wing of RVUN has completed recruitment on behalf of all five Power
Companies on the posts of Assistant Engineers & Junior Engineers of five cadres, Junior Chemists
and Informatics Assistant in Engineering Services, AO & PO in Officers Services and APO, JLO, Jr.
Accountant, Stenographer and Jr. Assistant/ CA-II in Ministerial Services. The knowledge of the
Engineers, officers and workers is updated on a continuous basis both within the organization and
from outside training/ refresher courses. A training programme was conducted for Personnel
Officers and Assistant Personnel Officers recruited in all five Power Companies.
With a view to maintain the motivational levels of the employees and incentivise loss reduction, the
Company has revised its Incentive Scheme linking it with loss reduction & performance
improvement.
13. Directors, Key Managerial Personnel (KMP)&Committees
During the period under review, Sh. P. Ramesh, IAS (DIN-03551794) has been appointedas
8
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
Chairman & Managing Director of the Companyw.e.f. 30.11.2018,in place of Sh. N K Kothari (DIN-
07649438) who completed his deputation period on 30.11.2018.
Sh. Naresh Pal Gangwar, IAS (DIN- 01180608), Sh. Kunji Lal Meena, IAS (DIN- 05220511),Dr.
Prithvi Raj, IAS (DIN- 03340556),Smt. Shakuntala Singh, IAS (DIN-08200730) and Ms. Renu
Jaipal (DIN-08567925) have been appointed as Directors of the Company during the said period.
Further, Ms. Arti Dogra, IAS (DIN-02821192), Sh. Sanjay Malhotra, IAS(DIN-00992744), Sh.
Praveen Gupta, IAS (DIN- 03521006), Sh. Naresh Pal Gangwar, IAS and Smt. Shakuntala Singh,
IAS were ceased to be Directors of the Company.
Besides, Sh. S S Meena (DIN-03319346) has been re-appointed as Wholetime Director designated
as Director (Technical)for a further period of one year w.e.f. 19.08.2019 and Sh. P S Arya (DIN-
07646220) has been re-appointed as Wholetime Director designated as Director (Projects)till the
date of his superannuation, i.e., 30.09.2020.
Dr. M L Gupta (DIN- 07580613) to be Director (Finance)and CFO of the Company and in his place
Sh. Devkinandan Sharma (DIN- 08508867)was appointed as Wholetime Director designated as
Director (Finance) w.e.f. 4.07.2019, however he also ceased to be Director (Finance) and CFO
19.08.2019.
The tenures of Dr. Rajendra Prasad Singh (DIN-00004812) and Sh. Narendra Nath Misra (DIN-
00575501), Independent Directors have been completed on 24.10.2019 and accordingly, they
ceased to be Independent Directors with effect from said date.
With cessation of Independent Directors, the Audit Committeeof the Board is reconstituted in the
following manner:
1. Sh. P. Ramesh, IAS, Chairman & MD – Chairman
2. Sh. Kunji Lal Meena, IAS, Director – Member
3. Ms. Renu Jaipal, IAS, Director – Member
The composition of Corporate Social Responsibility (CSR) and Nomination and Remuneration
Committeesare as under:
Corporate Social Responsibility (CSR)
Committee Committee
1. Chairman & MD - Chairman 1. Sh. Naresh Pal Gangwar, IAS
2. Independent Director - Member 2. Sh. R P Singh
3. Independent Director - Member 3. Sh. N N Misra
The Borrowings Committee of the Board,presently comprises of Chairman & MD, Director
(Finance), Director (Technical) and Director (Projects)has been authorized to approve short-term/
working capital loans upto a total limit of Rs.5000 Crores in a financial year (Rs.1000 Crores in
each case).
14. Auditors
14.1 Statutory Auditor
The Comptroller & Auditor General of India has appointed M/s B.L. Ajmera& Co,
Nomination and Remuneration
9
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
Chartered Accountants, Jaipur as the Statutory Auditors of the Company, for the
financial year 2018-19.
The replies of the Management to the observations of the Statutory Auditors on the
Annual Accounts (Standalone as well as Consolidated) for the financial year ended
31.3.2019, are attached hereto as Annexure-III. The replies of the Management on
the report/ comments of the Comptroller & Auditor General of India are attached
herewith.
14.2 Cost Auditor
M/s K. G. Goyal & Associates, Cost Accountants, Jaipur, has been appointed as the
Cost Auditor of the Company to conduct audit of the Cost Accounting records
maintained as per provisions of Section 148(1) of Companies Act, 2013 at all
accounting units of RVUN for the financial year 2018-19. The Cost Audit Report for
the financial year ended on 31st March, 2019has been filed within the prescribed
time period under the Companies (Cost Records and Audit) Rules, 2014.
14.3 Secretarial Auditor
M/s Kushawah Kundwani & Associates, Company Secretaries, Jaipur, has been
appointed as the Secretarial Auditor of the Company for the financial year 2018-19.
The Secretarial Audit Report for the financial year ended on 31st March, 2019 forms
part of this report and is annexed as Annexure IV along with replies of the
Management to the observation(s) therein.
15. Other Disclosures as per Section 134 (3) of Companies Act 2013, etc.
a) Adequacy of Internal Control Systems
The Company has in place adequate internal control systems commensurate with the
nature of the Company’s business and operations.
b) Sexual Harassment of Women at workplace
As per the requirement of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition & Redressal) Act, 2013 and rules made thereunder, the
Company has constituted a Committee which is responsible for redressal of
complaints related to sexual harassment. During the financial year 2018-19, no
complaint related to sexual harassment was received.
c) Change in the nature of business, if any
No change has been made in the nature of business of the Company.
d) Material Changes:
In terms of Section 134(3)(l) of the Companies Act, 2013, there have been no material
changes and commitments affecting the financial position of the Company between
the end of the financial year and the date of this report.
e) Significant or material orders:
No significant or material orders were passed by the Regulators or Courts or
Tribunals which impact the going concern status and Company’s operation in future.
10
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
f) Report on Subsidiaries, Associates Companies
Your Company has following 3 subsidiary and 2 Associate Companies(formed in
pursuance to Joint Venture Agreement with Adani Enterprises Limited),as on
31.03.2019–
S. Name of the company CIN/GLN Holding/ Subsidiary % of
No. / Associate shares
held
1. Giral Lignite Power Ltd. U40109RJ2006SGC023356 Wholly owned 100%
subsidiary
2. Dholpur Gas Power Ltd. U40109RJ2006SGC023352 Wholly owned 100%
subsidiary
3. Chhabra Power Ltd. U40109RJ2006SGC023353 Wholly owned 100%
subsidiary
4. Parsa Kente Collieries Ltd. U10200RJ2007PLC025173 Associate Company 26%
5. Rajasthan Collieries Ltd. U10100RJ2012PLC038382 Associate Company 26%
Pursuant to the provisions of Section 129, 134 and 136 of the Companies Act, 2013 read with rules
framed thereunder, RVUN had prepared consolidated financial statements of the Company and its
subsidiaries and a separate statement containing the salient features of financial statement of
subsidiaries, joint ventures and associates in Form AOC-1 forms part of the Annual Report.The
financial statements of subsidiary companies along with respective Board’s Report are placed
elsewhere in this Annual Report.
g) Particulars of Loans, Guarantees, Investments and Securities
There are no loans given, investments made, guarantees given and securities provided
during the year.The investmentsof the Company in its Subsidiaries and Joint
Ventures has been disclosed in the Financial Statements of the Company.
h) Deposits
The Company has not accepted or renewed any amount falling within the purview of
provisions of Section 73 of the Companies Act 2013 (“the Act”) read with the
Companies (Acceptance of Deposit) Rules, 2014 during the year under review. Hence,
the details relating to deposits as also requirement for furnishing of details of deposits
which are not in compliance with Chapter V of the Act may be treated as NIL.
i) Extract of the annual return
The details forming part of the Extract of the Annual Return in Form MGT-9, as
required under Section 92 of the Companies Act, 2013 is included in this Report as
Annexure-V and forms part of this Report.
j) Particulars of Contracts or Arrangement with Related Parties
During the period under review, the Company had not entered into any transactions
with related parties which could be considered material in terms of Section 188 of the
11
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
Companies Act, 2013. The Company’s major related party transactions are generally
with its subsidiaries and associates in the ordinary course of business (Annexure-VI).
k) Board Meetings
The details of the meetings of Board and its Committeesheld during the year and
attendance of Directorsthereatare enclosed asAnnexure-VII.
l) Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
i) The Company is making continuous efforts for conservation of energy by
reducing the Auxiliary Consumption at its various Power Stations by installation
of modern state of the art Power Plant equipment, by optimizing the same
through timely maintenance and various other methods to increase efficiency.
The details are enclosed at Annexure-VIII;
ii) As regards technology absorption, the information required under this Section is
enclosed at Annexure-VIII;
iii) There has been no foreign exchange inflow during the year while total foreign
exchange outflow was at Rs.23.89 Crores (in rupee terms).
m) Employees’ Remuneration
None of the employees of the Company is covered under the provisions of Rule 5(2) of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014.
n) Risk Management
The Company has an adequate system of risk assessment and management, which is
commensurate with the size of the Company.
o) Statistical Information on reservation of SCs/STs for the year 2018-19
The information pertaining to persons belonging to Scheduled Caste/ Scheduled Tribe
categories for the year 2018-19 is enclosed as Annexure-IX.
16. Directors’Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013, the Directors to the best of their
knowledge and belief state that:
i) in the preparation of the annual accounts, the applicable accounting standards had
been followed along with proper explanation relating to material departures;
ii) such accounting policies have been selected and applied them consistently and such
judgments and estimates have been made that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company as at end of financial year
and of the profit of the Company 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
12
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities;
iv) the annual accounts have been prepared on a going concern basis; and
v) proper systems have been devised to ensure compliance with the provisions of all
applicable laws and that such systems were adequate and operating effectively.
17. Acknowledgement
The Board hereby places on record its appreciation of the continued support received from
Government of Rajasthan and the concerned Ministries of Government of India. The Board
further expresses its appreciation of the support extended by the Rajasthan Electricity
Regulatory Commission, Power Finance Corporation, Rural Electrification Corporation
Limited and other Financial Institutions, bankers and other agencies which are
instrumental in the RVUN’s growth.
The Board places on record its appreciation of the valuable services rendered/
contributions made by its Directors and employees whose dedicated contribution has
always been a source of strength.
(P. Ramesh)
DIN-03551794
Chairman & Managing Director
Vidyut Bhawan, JanPath, Jyoti Nagar
Jaipur - 302005
Date: 09.12.2019
Place: Jaipur
13
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
Annexure – I
List of Power Stations/ Units of RVUN
S.No. Name of Power Station Planned Installed
Capacity Capacity
I. Kota Super TPS 1240 MW 1240 MW
1. Stage-I 2x110 MW 220 MW
2. Stage-II 2x210 MW 420 MW
3. Stage-III 1x210 MW 210 MW
4. Stage-IV 1x195 MW 195 MW
5. Stage-V 1x195 MW 195 MW
II. Suratgarh Super TPS 1500 MW 1500 MW
1. Stage-I 2x250 MW 500 MW
2. Stage-II 2x250 MW 500 MW
3. Stage-III 1x250 MW 250 MW
4. Stage- IV 1x250 MW 250 MW
III. Dholpur Gas based CCPP(GT-1, GT-2 & ST) 3x110 MW 330 MW
IV. Ramgarh Gas TPS 273.5 MW
1. Gas Turbine 1* 38.5 MW 38.5 MW
2. Gas Turbine 2 37.5 MW 37.5 MW
3. Steam Turbine 37.5 MW 37.5 MW
4. Gas Turbine Stg-III 110 MW 110 MW
5. Steam Turbine Stg.-III 50 MW 50 MW
V. Giral Lignite TPS 250 MW
1. Unit – 1 1x125 MW 125 MW
2. Unit – 2 1x125 MW 125 MW
VI. Chhabra TPS 1000 MW
1. Phase – 1 (Unit-1 & 2) 2x250 MW 500 MW
2. Phase – 2 (Unit-3 & 4) 2x250 MW 500 MW
VII. Chhabra Supercritical TPP 1320 MW
1. Unit-5 1x660 MW 660 MW
2. Unit-6 1x660MW 660MW
VIII. Kalisindh TPS (Unit-1&2) 2x600 MW 1200 MW
IX. Mahi Hydel Power Station Power House-I 2x25 MW 50 MW
X. Mahi Power House-II 2X45 MW 90 MW
XI. Mini Hydel Schemes (10) 23.85 MW
Total 7277.35 MW
* Includes inoperative unit of 3 MW.
In addition to the above, the operation & maintenance of Rana Pratap Sagar (172 MW) and Jawahar
Sagar (99 MW) Hydel Power Stations (owned by Rajasthan Rajya Vidyut Prasaran Nigam Ltd.) is
also under the control of the Company.
14
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
Annexure-II
Abstract of CSR Policy of RVUN
RVUN is a socially committed organization and aims to actively contribute to sustainable socio-
economic development of the local community and society surrounding its power generating
stations which are located mostly in remote areas. RVUN will take up community development
activities for existing Power Stations in operation as well as new/ extension power projects and
aims to restore the livelihood of the Project Affected Persons (PAPs) and to undertake the
development works in the Project Affected Area (PAA), for which RVUN has formed its Corporate
Social Responsibility (CSR) Policy.
RVUN shall provide opportunities for sustainable improvement of PAPs in the fields of income
generation, health, education, water & electricity, sanitation, communication and such other
fields through its CSR policy.
Fund for carrying out CSR activities for new/ extension projects of RVUN will be Rs.2.5 lacs/ 2.0
lacs/ 1.5 lacs per MW (one time) for Coal based Thermal Projects on Supercritical Technology/
Coal based Thermal Projects on Sub-critical Technology and Gas based Thermal Projects,
respectively. Fund for Hydel & other projects e.g. mining projects, etc. will be 0.4% of initial project
cost (one time). Fund for the Power Stations in operation will be 0.25% of the total annual
Operation & Maintenance charges/ cost allowed by Rajasthan Electricity Regulatory Commission
(RERC).
For the implementation of various activities a CSR Implementation Committee (CSRI Committee)
will be formed for each Power Project/ Station headed by District Collector of the concerned
district. The CSRI Committee will identify the works and executing agency for CSR activities.
Government agencies such as Public Works Department (PWD), Irrigation Department, Public
Health Engineering Department (PHED), Power Distribution Companies of the State, Panchayat
Raj Institutions/ Local bodies, Education Department, etc. shall generally be engaged to execute
these CSR activities/ works.
A separate Bank account shall be opened & maintained for deposit of funds allocated for CSR
activities. CSRI Committees shall regularly monitor the progress of the various CSR activities/
works undertaken by it. Ownership of the assets developed under CSR policy would vest in the
concerned Government Departments/ Panchayats, who shall be responsible for upkeep and
maintenance of these assets.
The CSR Po l i c y o f RVUN i s a l s o a va i l ab l e a t the webs i t e o f RVUN
http://energy.rajasthan.gov.in/content/dam/raj/energy/rvunl/pdf/MICS/csr.pdf
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
15
Annexure- III
MANAGEMENT’S RESPONSE TO THE STATUTORY AUDITORS’
REPORT ON THE FINANCIAL STATEMENTS OF RVUN (STANDALONE)
FOR THE FINANCIAL YEAR 2018-19.
v MAIN REPORT
The Statutory Auditor has given True & fair view in conformity with the accounting
principles generally accepted in India including IND AS, on the state of affairs (financial stposition) of the Company as at 31 March, 2019 and its profit (financial performance
including other comprehensive income), its cash flows and the changes in equity for the
year ended on that date, except the matters specified in “Basis of qualified opinion”.
v BASIS FOR QUALIFIED OPINION
Refer Annexure-I (which forms integral part of Auditor’s Report) of auditors ‘report which
consist of matter relates to qualification and reservations of which effects is not
ascertainable on financial statements that constituted the basis for modifying Auditor’s
opinion. Management response are annexed herewith as “Annexure-I”
v Emphasis of Matter
a) No comments as factual statement. The matter has already been adequately disclosed at
relevant note no.1 (1.8).
b) No comments as factual statement. The matter has already been adequately disclosed at
relevant note no.7.1
c) As the billing of late Payment Surcharge (LPS) have been made according to RERC Tariff
Regulations, therefore, the same has been considered under revenue from operations and
the matter has been disclosed at note no. 25.1
d) No comment as the matter has already been adequately disclosed at relevant note.
v REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
In this concluding part of main report, various clarifications and comments as required under
provisions as required under provisions of Companies Act are provided/ mentioned. These are
factual statement and doesn’t require any management response/comment.
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
16
Annexure I to Independent Auditors' Report
(Referred to in “Basis for Qualified Opinion Paragraph in the Independent AUDITORS’
Report of even date on account of RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED
for the year ended on 31st March, 2019)
1) Fly Ash Utilization Fund
Management does not agree with the auditor’s qualification as in compliance of the provision of
Gazette notification dated 03.11.2009 issued by Ministry of Environment and
Forest(MoEF),Govt.of India,RVUN has created a separate account head as Fly Ash Utilization Fund
under code head 46.930 in the books of accounts of the company and all the amount collected from
sale of fly ash based product are credited to the said head and same shall be utilised only for
development of infrastructure or activities, promotion and facilitation activities for use for fly ash
until 100% fly ash utilisation level is achieved.
2) PKCL Price Escalation Dispute
PKCL has claimed an amount of Rs 314.57 Crores towards Price escalation and an amount of Rs
88.05 Crores towards interest as per Supreme Court Judgment dated 27.05.19, which has now
been revised approx. Rs. 424 crore (including interest) by PKCL. RVUNL filed Review Petition on
dated 25.06.2019 in Supreme Court of India against the judgment. Hon’ble Supreme Court of
India in its judgment dated 24.07.2019 dismissed the review petition. Further, the company has
filed curative petition before Hon'ble Supreme Court of India on dated 18.10.2019 vide Diary No.
37955 of 2019. The liability towards Price escalation/interest has not been acknowledged by the
company so far. Even if the liability as per hon’ble Supreme Court order becomes imperative on the
company, the company would in any case recover the same amount from the Discoms as per RERC
tariff Regulations.
3) Leases
Accounting of leases has been carried out as per Ind As-17 considering basic concept of
Materiality. The estimated impact on P&L of this transaction is Rs. Less than 7 Lacs only for FY
2018-19.
4) Receivables from 100% Subsidiary Giral Lignite Power Ltd.
Being holding company, RVUNL is arranging all the financial requirements of GLPL for regular
O&M expenses as well as its debt servicing. An amount of Rs. 1,507.46 crores is receivable from
GLPL up to 31-03-2019. Ind AS, as notified by the Ministry of Corporate Affairs are applicable to
RVUNL w.e.f. 01-04-2016 and as per section 5.5 of Ind AS – 109, an entity needs to recognize a loss
allowance for expected credit losses on a financial assets that are measured at debt instruments
through amortized cost. In view of the Ind AS – 109 as well as accounting policy no. 22 (i), expected
credit loss need to be recognized on the amount receivable from GLPL as the credit risk on this
receivable has significantly increased due to losses incurred by GLPL and currently it is not in
operation too. The company believes that the GLPL plant will revive soon and come into operation
but in compliance of Ind AS – 109, the company has to recognize expected credit loss due to
increase in significant credit risk. Accordingly using simplified approach for recognition of
impairment losses, the management recognized the provision for impairment on the basis of aging
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
17
of the receivables outstanding from GLPL @ 10% each year which comes to the tune of Rs. 927.84
crores (provision till 31-03-2015 Rs. 265.19 cr. , for FY 2015-16 Rs. 66.21 cr. and for FY 2016-17
Rs. 92.52 cr. For FY 2017-18 Rs.231.29 FY 2018-19 Rs.272.60). Main consideration to arrived at
this management judgment is:
“Although both units are under shutdown but not obsolete and can be operated on sustainable
basis after infusing addl. Capital cost either by RVUN itself or by any other entity. Therefore, there
is no significant reason available for complete impairment of the receivable amount. It is only a
matter of time and as soon as issues regarding availability of proper fuel and infusion of addl.
capital cost (for which proposals of either disinvestment or incurring addl. Capital cost are already
under process of finalization) addressed, the amount will recovered”.
5) PROPERTY PLANT AND EQUIPMENT, CAPITAL WORK IN PROGRESS (CWIP) AND
DEPRECIATION:
The necessary adjustments have been made and due to continue efforts the balances are reducing
year after year.
6. LONG OUTSTANDING/UNRECONCILED BALANCES
6.1 DEBIT BALANCES
a) Necessary provisions have already been made at various units regarding Un
reconciled long outstanding balances. Continuous efforts are being made to
reconcile these balances to carry out necessary adjustments and some of
these have been adjusted during the year.
b) These include very old balances and continuous efforts are being made to
reconcile these balances and carry out necessary adjustment, if required,
and these are in reducing trend. Further, reconciliation towards trade
Receivable for F.Y 2018-19 has been carried out, now.
6.2 CREDIT BALANCES
a) These also include very old balances and continuous efforts are being made
to reconcile these balances and carry out necessary adjustment, if required,
and these are in reducing trend.
b) The matter of Indo-Nissan is pending for decision in the Hon’ble Supreme
Court. Any further action regarding adjustment of the same will be taken as
per decision of the Hon’ble Court.
c) Now, reconciliation between M/s PKCL and RVUNL has been done up to
31.03.2019.
d) The concerned officers have been directed to reconcile these balances and
ensure that the said qualification may not be repeated in ensuing Financial
Year.
7. GENERAL/OTHER
7.1 Regarding contingent liabilities, Necessary disclosure made at note no. 35.2
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
18
7.2 Management does not agree with the auditor’s qualification as all the payments
have been made according to the provisions of the terms & conditions of the
contract. Further, the same matter has also been observed by C&AG and
submitted to PUC. He agreed with RVUNL reply.Therefore,there is no more
irregulatories.
ANNEXURE II TO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 1(F) of Report on other Legal and Regulatory Requirements of the
Independent Auditor’s Report of even date to the members of Rajasthan Rajya Vidyut
Utpadan Nigam Limited (“the Company), of even date.
a) The internal expenditure audit at most of the units of RVUN for the year 2018-19 has been
completed except few units for which audit is under progress and same will be completed
shortly.
b) This is factual statement and doesn’t require any management response /comment.
c) Certificate regarding Physical existence of inventory, tallied with accounts, duly signed by
the head of the project had been provided to statutory Auditor. Further, for this purpose a
committee of 3 members has been constituted at level of plant/Unit for conducting
Physical Verification of the stores and spares in every financial year at regular intervals.
d) Reconciliation of Inter Company Transactions with DISCOM for FY 2018-19 was remained
pending due to non-finalization of accounts of the sister companies. Now, the same has
been carried out.
e) Management does not agree with the auditor’s qualification as All the issue with PKCL(joint
Venture )& RVUN has been dealt with considering all the facts & relevant provisions of
CMDA and have been examined at every level of the management and there is zero
possibility of having lack of internal control.
f) Same has been adequately disclosed by way of relevant note.
ANNEXURE III TO THE INDEPENDENT AUDITORS’ REPORT
Referred to in paragraph 2 of Report on other Legal and Regulatory Requirements of the
Independent Auditor’s Report of even date to the members of Rajasthan Rajya Vidyut
Utpadan Nigam Limited (“the Company), on the financial statements for the year ended 31st
March 2019
(i) a) This is a factual statement and doesn’t require any management response/comment.
b) This is a factual statement and doesn’t require any management response/comment.
c) Needful directions have been imparted to concerned Project /Unit authorities to provide
the title deeds.
(ii) Certificate regarding Physical existence of inventories, tallied with accounts, duly signed by the
Head of the project had been provided to Statutory Auditor.
Further, for this purpose a committee of 3 members has been constituted at level of plant/Unit
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
19
for conducting Physical Verification of the stores and spares in every Financial year at regular
intervals.
(iii) This is factual statement and doesn’t require any management response/comment.
(iv) This is factual statement and doesn’t require any management response/comment.
(v) This is factual statement and doesn’t require any management response/comment.
(vi) Cost Records maintained under Section 148(1) of the Companies Act, 2013 for the financial
year 2018-19 has been approved by Board of Directors in the meeting dated on 12/09/2019.
Cost Audit Report has been obtained thereon and CRA-4 has also been filed.
(vii) a) This is factual statement and doesn’t require any management response/comment.
b) The same has been adequately disclosed in Note no. 35 (c) (i) (iii) (viii).
(viii) This is factual statement and doesn’t require any management response/comment.
(ix) The Company has adequate details of loans including utilization also. Generally company has
obtained Term Loans for construction of projects and short term Loans for working capital
requirement and utilized the same for the respective purposes.
(x) to (xvi) This is factual statement and doesn’t require any management response/comment.
Annexure IV to Independent Auditors’ Report
(Referred to in Paragraph 3 under “Report on other legal and regulatory requirements” in the
Independent Auditors’ report of even date on account of RAJASTHAN RAJYA VIDYUT stUTPADAN NIGAM LIMITED for the year ended on 31 March, 2019)
Part-A
1 to 3 Factual
Part-B
1 to 3 Factual
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
20
MANAGEMENT’S RESPONSE TO THE STATUTORY AUDITORS'
REPORT ON THE ACCOUNTS OF RVUN (CONSOLIDATED) FOR THE
FINANCIAL YEAR 2018-19
v MAIN REPORT
The Statutory Auditor has given True & fair view in conformity with the accounting
principles generally accepted in India including IND AS, on the consolidated state of affairs st(financial position) of the group, its associates and jointly controlled entities as at 31
March, 2019 and its profit (financial performance including other comprehensive income),
its cash flows and the changes in equity for the year ended on that date, except the matters
specified in “Basis of qualified opinion”.
v BASIS FOR QUALIFIED OPINION.
Refer Annexure-I (which forms integral part of Auditor’s Report) of auditors ‘report which
consist of matter relates to qualification and reservations of which effects is not
ascertainable on financial statements that constituted the basis for modifying Auditor’s
opinion. Management response are annexed herewith as “Annexure-I”
v EMPHASIS OF MATTER
(a) No comments as factual statement. The matter has already been adequately disclosed at
relevant not.
b) No comment as the matter has already been adequately disclosed at relevant note.
c) No comments as factual statement. The matter has already been adequately disclosed at
relevant note no.7.1
d) As the billing of late Payment Surcharge (LPS) have been made according to RERC Tariff
Regulations, therefore, the same has been considered under revenue from operations and
the matter has been disclosed at note no. 25.1
v Other matters:-
No Comments
v Report On Other Legal and Regulatory Requirements
In this concluding part of main report, various clarifications and comments as required
under provisions of Companies (Auditors’ Report) Order 2016 are provided/ mentioned.
These are informative and factual statements hence don’t require any management
response/comment.
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
21
ANNEXURE –I TO INDEPENDENT AUDITORS' REPORT
(Referred to in “Basis for Qualified Opinion paragraph in the Independent AUDITORS’
Report of even date on account of RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED
for the year ended on 31st March, 2019)
1. Fly Ash Utillization Fund
Management does not agree with the auditor’s qualification as in compliance of the provision
of Gazette notification dated 03.11.2009 issued by Ministry of Environment and
Forest(MoEF),Govt.of India,RVUN has created a separate account head as Fly Ash Utilization
Fund under code head 46.930 in the books of accounts of the company and all the amount
collected from sale of fly ash based product are credited to the said head and same shall be
utilised only for development of infrastructure or activities, promotion and facilitation
activities for use for fly ash until 100% fly ash utilisation level is achieved.
2) PKCL Price Escalation Dispute
PKCL has claimed an amount of Rs 314.57 Crores towards Price escalation and an amount of
Rs 88.05 Crores towards interest as per Supreme Court Judgment dated 27.05.19, which has
now been revised approx. Rs. 424 crore (including interest) by PKCL. RVUNL filed Review
Petition on dated 25.06.2019 in Supreme Court of India against the judgment. Hon’ble
Supreme Court of India in its judgment dated 24.07.2019 dismissed the review petition.
Further, the company has filed curative petition before Hon'ble Supreme Court of India on
dated 18.10.2019 vide Diary No. 37955 of 2019. The liability towards Price
escalation/interest has not been acknowledged by the company so far. Even if the liability as
per hon’ble Supreme Court order becomes imperative on the company, the company would in
any case recover the same amount from the Discoms as per RERC tariff Regulations.
3) Leases
Accounting of leases has been carried out as per Ind As-17 considering basic concept of
Materiality. The estimated impact on P&L of this transaction is Rs. Less than 7 Lacs only for
FY 2018-19.
4) Receivables from 100% Subsidiary Giral Lignite Power Ltd.
Being holding company, RVUNL is arranging all the financial requirements of GLPL for regular
O&M expenses as well as its debt servicing. An amount of Rs. 1,507.46 crores is receivable
from GLPL up to 31-03-2019. Ind AS, as notified by the Ministry of Corporate Affairs are
applicable to RVUNL w.e.f. 01-04-2016 and as per section 5.5 of Ind AS – 109, an entity needs
to recognize a loss allowance for expected credit losses on a financial assets that are measured
at debt instruments through amortized cost. In view of the Ind AS – 109 as well as accounting
policy no. 22 (i), expected credit loss need to be recognized on the amount receivable from
GLPL as the credit risk on this receivable has significantly increased due to losses incurred by
GLPL and currently it is not in operation too. The company believes that the GLPL plant will
revive soon and come into operation but in compliance of Ind AS – 109, the company has to
recognize expected credit loss due to increase in significant credit risk. Accordingly using
simplified approach for recognition of impairment losses, the management recognized the
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
22
provision for impairment on the basis of aging of the receivables outstanding from GLPL @
10% each year which comes to the tune of Rs. 927.84 crores (provision till 31-03-2015 Rs.
265.19 cr. , for FY 2015-16 Rs. 66.21 cr. and for FY 2016-17 Rs. 92.52 cr. For FY 2017-18 Rs.
231.29 FY 2018-19 Rs. 272.60 ). Main consideration to arrived at this management judgment
is:
“Although both units are under shutdown but not obsolete and can be operated on
sustainable basis after infusing addl. Capital cost either by RVUN itself or by any other entity.
Therefore, there is no significant reason available for complete impairment of the receivable
amount. It is only a matter of time and as soon as issues regarding availability of proper fuel
and infusion of addl. capital cost (for which proposals of either disinvestment or incurring
addl. Capital cost are already under process of finalization) addressed, the amount will
recovered”.
5) PROPERTY PLANT AND EQUIPMENT, CAPITAL WORK IN PROGRESS (CWIP) AND
DEPRECIATION:
The necessary adjustments have been made and due to continue efforts the balances are
reducing year after year.
6. LONG OUTSTANDING/UNRECONCILED BALANCES
6.1 DEBIT BALANCES
a) Necessary provisions have already been made at various units regarding Un
reconciled long outstanding balances. Continuous efforts are being made to
reconcile these balances to carry out necessary adjustments and some of these
have been adjusted during the year.
b) These include very old balances and continuous efforts are being made to reconcile
these balances and carry out necessary adjustment, if required, and these are in
reducing trend. Further, reconciliation towards trade Receivable for F.Y 2018-19
has been carried out, now.
6.2 CREDIT BALANCES
a) These also include very old balances and continuous efforts are being made to
reconcile these balances and carry out necessary adjustment, if required, and
these are in reducing trend.
b) The matter of Indo-Nissan is pending for decision in the Hon’ble Supreme Court.
Any further action regarding adjustment of the same will be taken as per decision
of the Hon’ble Court.
c) Now, reconciliation between M/s PKCL and RVUNL has been done up to
31.03.2019.
d) The concerned officers have been directed to reconcile these balances and ensure
that the said qualification may not be repeated in ensuing Financial Year.
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
23
7. GENERAL/OTHER
7.1 Regarding contingent liabilities, Necessary disclosure has been made at note no. 35.02
7.2 Management does not agree with the auditor’s qualification as all the payments have
been made according to the provisions of the terms & conditions of the contract.
Further, the same matter has also been observed by C&AG and submitted to PUC.He
agreed with RVUNL reply.Therefore,there is no more irregulatories.
“ANNEXURE I-A”
(BASIS OF QUALIFIED OPINION)
I. Maintenance of proper Records & Documents:
A. Current Assets and Current Liabilities:
1. Obsolete inventory has not identified and no provision for obsolete inventory has been
made.
As reported by Stores wing, GLPL, these is no any obsolete inventory during the F.Y
2018-19,hence no provision for obsolete inventory has been made in books of Accounts.
Therefore management is not agreed with this qualification.
B. Others
1. Noted for implementation with effect from current F.Y 2019-20.
2. As pointed out by the Statutory Auditors,an amount Rs.1,37,27,407/- has shown
under the head 27.209 "Advance to CTO", Barmer during the year 2006-2008. Out of
which Rs.1,26,63,691.42/-adjusted during the financial year 2017-18 and
Rs.3,94,733/- received during the financial year 2018-19.Now remaining amount of
Rs.6,68,982.58/-, is recoverable from suppliers or required to be charged to capital
expenditure. We are making our best efforts to search the old record and assure to
auditors to adjust this remaining amount shortly.
3. The matter has already been taken up with PFC regarding transfer of loan from RRVUNL
to GLPL.Above matter is under process.
4. It is assured to the auditor that we will make best efforts to carry out the physical
verification of inventory in due course of time, in future. Regarding loss of inventory of
coal and oil will book in F.Y 2019-20 after instruction from store wing of GLPL.
5. Noted for implementation with effect from current F.Y 2019-20.
6. Noted for implementation with effect from current F.Y 2019-20.
7. Process of reconciliation of balances under the various heads is taken up and shall be
reconciled shortly.
8. Process of reconciliation of balances under the “Liabilities for supply of material”of
IISCO & STPS is taken up and shall be reconciled shortly.
9. As per IND AS, it is not required to mention the amount which shall be treated as
material. Therefore management is not agreed with this qualification.
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
24
10. Noted for implementation with effect from current F.Y 2019-20.
11. RVUN being Holding Company of GLPL has already disclosed the facts in its Directors
Report for the year 2017-18.
12. Reconciliation of balances under the head 25.200 BHEL against Unit-I & Unit-II is
under process and shall be reconciled shortly.
13. Rs.19,92,58,178/- under the head 71.8 "Other Operating Exp" payable to JDVVNL
against Energy bills of water supply from Mohangarh to GLPL plant site pertaining to
financial year 2007-08 to 2016-17 of GLPL. As decided by the Principal S e c r e t a r y ,
Energy (GOR) and approved by the WTD, GLPL (RVUNL) in the meeting held on
02.04.2019 and a revised budget for said amount was considered by the BOD for t h e
year 2018-19. Therefore it is no prior period expenditure and management is not agreed
with this qualification.
ANNEXURE - II TO THE INDEPENDENT AUDITORS’ REPORT
Referred to in paragraph 1(F) of Report on other Legal and Regulatory Requirements of the
Independent Auditor’s Report of even date to the members of Rajasthan Rajya Vidyut
Utpadan Nigam Limited (“the Company), of even date.
QUALIFIED OPINION
a) The internal expenditure audit at most of the units of RVUN for the year 2018-19 has
been completed except few units for which audit is under progress and same will be
completed shortly.
b) This is factual statement and doesn’t require any management response /comment.
c) Certificate regarding Physical existence of inventory, tallied with accounts, duly signed
by the head of the project had been provided to statutory Auditor. Further, for this
purpose a committee of 3 members has been constituted at level of plant/Unit for
conducting Physical Verification of the stores and spares in every financial year at
regular intervals.
d) Reconciliation of Inter Company Transactions with DISCOM for FY 2018-19 was
remained pending due to non-finalization of accounts of the sister companies. Now, the
same has been carried out.
e) Management does not agree with the auditor’s qualification as All the issue with
PKCL(joint Venture )& RVUN has been dealth with considering all the facts & relevant
provisions of CMDA and have been examined at every level of the management and there
is zero possibility of having lack of internal control.
f) Same has been adequately disclosed by way of relevant note.
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
25
Form: MR-3
SECRETARIAL AUDIT REPORTstFor the Financial Year ended on 31 March, 2019
{Pursuant to Section 204 (1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014}
UDIN : F010346A000340601
To The Members,
Rajasthan Rajya Vidyut Utpadan Nigam Limited
CIN: U40102RJ2000SGC016484
Vidyut Bhawan, Jyoti Nagar
Jaipur-302005
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and
the adherence to good corporate practices by Rajasthan Rajya Vidyut Utpadan Nigam Limited
(hereinafter called ‘RVUN’ / ‘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 RVUN`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, 2019 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 the Company for the financial year ended on 31st March, 2019according to the
provisions of:
1. The Companies Act, 2013 (the Act) and the rules made thereunder;
2. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made
thereunder;
3. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
4. Foreign Exchange Management Act, 1999 and the rules and regulations made
thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment
and External Commercial Borrowings; (Not applicable to the Company during the
Audit Period)
5. 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
ndE-295-296, Speakwel House, 2 Floor
LalKothi Scheme, Behind New VidhanSabha, Jaipur-15
Tel: +91- 0141-4030077,(M): 9828839917,9828727509
Kushawah Kundwani & Associates
Company Secretaries
Annexure-IV
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
26
and Takeovers) Regulations, 2011; (Not applicable to the Company during the
Audit Period)
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading)
Regulations, 1992/The Securities and Exchange Board of India (Prohibition of
Insider Trading) Regulations, 2015.
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2009; (Not applicable to the Company during the
Audit Period)
(d) The Securities and Exchange Board of India (Employee Stock Option Scheme
and Employee Stock Purchase Scheme) Guidelines, 1999; (Not applicable to
the Company during the Audit Period)
(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; (Not applicable to the Company during the Audit Period)
(g) The Securities and Exchange Board of India (Delisting of Equity Shares)
Regulations, 2009; (Not applicable to the Company during the Audit
Period) &
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations,
1998; (Not applicable to the Company during the Audit Period)
(g) The Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015
Compliances/processes/systems under other Laws applicable to the Company have been got
verified on the basis of random sampling.
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India.
(ii) The Listing Agreement entered into by the Company with Bombay Stock Exchange for
listing of Bonds in the Wholesale Debt Market of the Exchange.
During the period under review, the Company has complied with the provisions of the Acts, Rules,
Regulations, Guidelines, Standards, etc. as mentioned above.
We further report that, during the year under review:
The Board of Directors of the Company is generally duly constituted with proper balance of
Executive Directors, Non-Executive Directors and 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 has been given to all directors to schedule the Board Meetings, agenda and
detailed notes on agenda are sent atleast seven days in advance, a system exists for seeking and
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
27
obtaining further information and clarifications on the agenda items before the meeting and for
meaningful participation at the meeting.
Majority decision is carried through while dissenting members’ views are captured and recorded as
the part of the minutes.
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 and the Company is advised to further strengthening the
same.
We further report that during the audit period the Company has –
1. Increased its overall limit on borrowings from Rs.38,000 crore to Rs.46,000 crore in
its Extraordinary General Meeting held on 09.04.2018. Further, the Board of
Directors of the Company in its 286th meeting held on 28.02.2019 approved increase
in overall limit on borrowings from Rs.46,000 crore to Rs.55,000 crore, which was
subsequently approved by the members in their Extraordinary General Meeting held
on 27.03.2019.
2. Approved Bonds issue of Rs.8000 crore on private placement basisin their
Extraordinary General Meeting held on 27.03.2019.
For Kushawah Kundwani & Associates
Company Secretaries
ICSI-Code-P2015RJ038500
FRN-13/287/2015
UDIN: F010346A000340601
Ankit Singh Kushawah
Partner
M. No.: FCS 10346
C. P. No.:11834
Date: 02.12.2019
Place: Jaipur
(This report is to be read with our letter of even date which is annexed as Annexure-A which
forms an integral part of this report.)
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
28
ndE-295-296, Speakwel House, 2 Floor
LalKothi Scheme, Behind New VidhanSabha, Jaipur-15 Tel: +91- 0141-4030077 (M): 9828839917, 9828727509
Kushawah Kundwani & Associates
Company Secretaries
“Annexure-A”
To
The Members,
Rajasthan Rajya Vidyut Utpadan Nigam Limited
CIN: U40102RJ2000SGC016484
Vidyut Bhawan, Jyoti Nagar
Jaipur-302005
Our report of even date is to be read along with this letter:
1. The Company is a Government Company as defined under Section 2(45) of the Companies
Act, 2013.
2. Maintenance of secretarial records is the responsibility of the management ofthe Company.
Our responsibility is to express an opinion on these secretarial records based on our audit.
3. 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 that correct facts are reflected in secretarial records. We
believe that the processes and practices, we followed provide a reasonable basis for our
opinion.
4. We have not verified the financial records and books of accounts of the Company which have
duly audited by the Auditor’s.
5. The applicability of The SEBI (Prohibition of Insider Trading) Regulation, 2015 is in question,
therefore, we are unable to comment on any compliance with the said regulations.
6. Where ever required, we have obtained the management representation about the
compliance of laws, rules, and regulations and happening of events, etc.
7. The compliance of the provisions of corporate and other applicable laws, rules, regulations,
standards is the responsibility of management. Our examination was limited to the
verification of procedures on test basis.
8. The Secretarial Audit report is neither an 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.
9. The Company have appointed two Independent Directors on its Board of Directors in
compliance of the provisions under the Act, whereas the company is required to have at least
one-third of the total number of directors in the Board as independent directors due to its
listed debt securities on Bombay Stock Exchange.However, the Company informed that, the
aforesaid securities are listed only in Wholesale Debt Market of the Bombay Stock Exchange
by entering into the applicable listing agreement for that securities besides, the said Bonds
were issued by way of private placement and not through public issue.
Therefore, the Company stated that it shall not be treated as a listed company for the
purposes of compliances under the Companies Act, 2013. Further, there is no clarification
form Ministry of Corporate Affairs (MCA) and The Securities and Exchange Board of India
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
29
(SEBI) in this regard. Consequently, the Company contesting with the compliance
with the provision.Therefore, we are unable to comment on compliances with the
said provisions and suggest the company to seek clarification from the MCA and/or
SEBI in this regard to avoid such ambiguity in future.
For Kushawah Kundwani & Associates
Company Secretaries
ICSI-Code-P2015RJ038500
FRN-13/287/2015
UDIN: F010346A000340601
Ankit Singh Kushawah
Partner
M. No.: FCS 10346
C. P. No.:11834
Date: 02.12.2019
Place: Jaipur
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
30
Annexure-V
RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED
FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN
As on the financial year ended on 31 March 201
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
1. Registration and Other Details:
1. CIN U40102RJ2000SGC016484
th2. Registration Date 19 June, 2000
3. Name of the Company Rajasthan Rajya Vidyut Utpadan Nigam Limited
4. Category/Sub-Category of Category - Company Limited by Shares the company Sub-Category- State Government Company
5. Address of the Registered R.C. Dave Marg, Vidyut Bhawan, Jyoti Nagar, office and contact details Jaipur- 302005
6. Whether Listed Company No
7. Name Address and Contact Not Applicable in Equity sharesDetails of Registrar and Transfer Agent, if any Karvy Computershare Pvt. Ltd.
Karvy House, 46, Avenue 4, Street No. 1, Banjara Hills, Hyderabad- 500034 Tele No.: +91 40 23312454 Fax No. : +91 40 23311968 Email : [email protected]: www.karvy.com
(RVUN has appointed the above mentioned Registrar and Transfer agent for the issuance of Non Convertible Bonds)
2. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-
S. Name and Description of main NIC Code of % to total turnover
No. products / services the Product/ of the company
service
1. Generation of Power 35102 100%
st 9
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
31
3.PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANY
S. No.
Name and address of the company
CIN/GLN Holding/ Subsidiary/ Associate
% of shares held
Applicable Section
1. Giral Lignite Power Limited Vidyut Bhawan, Janpath, Jyoti Nagar, Jaipur-302005
U40109RJ2006SGC023356
Wholly owned subsidiary
100% 2 (87)
2. Dholpur Gas Power Limited Vidyut Bhawan, Janpath, Jyoti Nagar, Jaipur-302005
U40109RJ2006SGC023352
Wholly
owned
subsidiary
100% 2 (87)
3. Chhabra Power Limited Vidyut Bhawan, Janpath, Jyoti Nagar, Jaipur-302005
U40109RJ2006SGC023353
Wholly
owned
subsidiary
100% 2 (87)
4. Parsa Kente Collieries Limited 32,6th Floor, Triniti, Plot No. 05, Swage Farm, New Sanganer Road, Jaipur-302019
U10200RJ2007PLC025173
Associate
Company
26% 2 (6)
5. Rajasthan Collieries Limited 32,6th Floor, Triniti, Plot No. 05, Swage Farm, New Sanganer Road, Jaipur-302019
U10100RJ2012PLC038382
Associate
Company
26% 2 (6)
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
32
4. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i Category-wise Share Holding
CATEGORY OF
SHAREHOLDERS the year Change
during
the year
Demat Physical Total % of Demat Physical Total % of
Total Total
Shares Shares
(A) PROMOTERS
(1) INDIAN
(a) Individual /HUF - - - - - - - -
(b) Central - - - - - - - - Government
(c) State - 9675420000 100 - 100679500000 100 NIL
Government
(d) Bodies - - - - - - - - - Corporate
(e) Financial - - - - - - - - - Institutions / Banks
(f) Others - - - - - - - - -
Sub-Total A(1): - 9675420000 9675420000 100 - 100679500000 100679500000 100 NIL
(2) FOREIGN
(a) Individuals - - - - - - - - - (NRIs/Foreign Individuals)
(b) Bodies - - - - - - - - - Corporate
(c) Institutions - - - - - - - - -
(d) Qualified - - - - - - - - - Foreign Investor
(e) Others - - - - - - - - -
Sub-Total A(2): - - - - - - - - -
Total A=A(1)+A(2) - 9675420000 9675420000 100 - 100679500000 100679500000 100 NIL
(B) PUBLIC SHAREHOLDING
(1) INSTITUTIONS
(a) Mutual Funds - - - - - - - - - /UTI
(b) Financial - - - - - - - - - Institutions / Banks
(c) Central - - - - - - - - - Government
(d) State - - - - - - - - - Government
(e) Venture - - - - - - - - - Capital Funds
(f) Insurance - - - - - - - - - Companies
(g) Foreign - - - - - - - - - Institutional Investors
(h) Foreign - - - - - - - - - Venture Capital Investors
No. of Shares held at the No. of Shares held at the end %
beginning of of the year
9675420000 100679500000
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
33
(i) Others - - - - - - - - -
Sub-Total B(1): - - - - - - - - -
(2) NON- INSTITUTIONS
(a) Bodies - - - - - - - - - Corporate
(b) Individuals - - - - - - - - -
(i) Individuals holding nominal - - - - - - - - - share capital upto Rs.1 lakh
(ii) Individuals holding nominal share capital in - - - - - - - - - excess of Rs.1 lakh
(c) Others - - - - - - - -
CLEARING - - - - - - - - - MEMBERS
NON RESIDENT - - - - - - - - - INDIANS
(d) Qualified - - - - - - - - - Foreign Investor
Sub-Total B(2): - - - - - - - - -
Total Public Shareholding
Total B=B(1)+B(2) - - - - - - - - -
Total (A+B) : - 9675420000 9675420000 100 - 100679500000 100679500000 100 NIL
(C) Shares held by custodians, - - - - - - - - - against GDRs ADRs
GRAND TOTAL (A+B+C): - 9675420000 9675420000 100 - 100679500000 100679500000 100 NIL
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
34
ii. Shareholding of Promoters
iii.Change in Promoters’ Shareholding (please specify, if there is no change): No Change
Sr.No.
Shareholder’s Name Shareholding at the beginning of the year
Shareholding at the end of the year
No. of Shares
% of total Shares of the company
% of Shares Pledged/ encumbered to total shares
No. of Shares
% of total Shares of the company
% of Shares Pledged/ encumbered to total shares
% change in shareholding during the year
1 Government of Rajasthan
9675419993 100 NIL 10067949993 100 NIL NIL
2. Sh. P. Ramesh NIL -- NIL 1 -- NIL NIL
3. Sh. N K Kothari 1 -- NIL NIL -- NIL NIL
4. Sh. Kunji Lal Meena NIL -- NIL 1 -- NIL NIL
5. Sh. Sanjay Malhotra 1 -- NIL NIL -- NIL NIL
6. Dr. M L Gupta 1 -- NIL 1 -- NIL NIL
7. Sh. S.S. Meena 1 -- NIL 1 -- NIL NIL
8. Sh P. S. Arya 1 -- NIL 1 -- NIL NIL
9. Sh. A.K.C. Bhandari 1 -- NIL NIL -- NIL NIL
10. Sh. Gopal Jasoria 1 -- NIL NIL -- NIL NIL
11. Sh. Chandra Prakash NIL -- NIL 1 -- NIL NIL
12. Sh. M.K. Khandelwal NIL -- NIL 1 -- NIL NIL
Total 9675419993 100 NIL 10067949993
100 NIL NIL
1.
Government of
Rajasthan
Shareholding at the beginning of the year
Cumulative Shareholding during the year
No. of shares % of total shares of the company
No. of shares % of total shares of the company
At the beginning of
the year
9675419993 100 100
Date wise Increase
/ Decrease in
Promoters Share
Holding during the
year specifying the
reasons for
increase/Decrease
(e.g. allotment /
Transfer / Bonus/
Sweat equity etc.)
1. Allotment of 8,45,30,000 equity shares of Rs.10/ - each amounting to Rs. 84,53,00,000/- on 15.05.2018.
2. Allotment of 7,70,00,000 equity shares of Rs.10/ - each
amounting to Rs.77,00,00,000/- on 18.07.2018.
3. Allotment of 3,85,00,000 equity shares of Rs.10/ - each amounting to Rs.38,50,00,000/- on 24.08.2018.
4. Allotment of 3,85,00,000 equity shares of Rs.10/ - each amounting to Rs.38,50,00,000/- on 20.09.2018.
5. Allotment of 15,40,00,000 equity shares of Rs.10/ - each amounting to Rs.1,54,00,00,000/- on 28.01.2019.
At the end of the
year
10067949993 100 100
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
35
iv.Shareholding Pattern of top ten Shareholders(other than Directors, Promoters and Holders of GDRs and ADRs): NIL
Sl. No.
Shareholding at the beginning of the year
Cumulative Shareholding during the year
For each of the Top 10
Shareholders
No. of Shares
% of total shares of the
company
No. of Shares
% of total shares of the
company
At the beginning of the year
Date wise Increase / Decrease in
Promoters Share Holding during
the year specifying the reasons for
increase/Decrease (e.g. allotment
/ Transfer / Bonus/ Sweat equity
etc.)
NIL
At the end of the year (or on the
date of separation, if separated
during the year)
v. Shareholding of Directors and Key Managerial Personnel: NIL
Sl. No.
Shareholding of each director
and each Key Managerial
Personnel
Shareholding at the beginning of the year
Cumulative
Shareholding during the year
No. of Shares
% of total shares of the
company
No. of Shares
% of total shares of the
company
At the beginning of the year
-
-
-
-
Date wise Increase / Decrease in
Promoters Share Holding during
the year specifying the reasons
for increase/Decrease (e.g.
allotment / Transfer / Bonus/
Sweat equity etc.)
- - - -
At the end of the year - - - -
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
36
5. INDEBTEDNESSIndebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans excluding deposits
Unsecured Loans
Deposits
Total Indebtedness
Indebtedness at the beginning of the year
i.
Principal Amount
2,35,25,93,73,060.70
1,45,37,97,33,655.07
0.00
3,80,63,91,06,715.77
ii.
Interest due but not paid
0.00
0.00
0.00
0.00
iii.
Interest accrued but not paid
4,12,32,58,008.00
57,59,52,834.00
4,69,92,10,842.00
Total (i+ii+iii)
2,39,38,26,31,068.70
1,45,95,56,86,489.07
0.00
3,85,33,83,17,557.77
Change in Indebtedness during the financial year
Addition
55,49,82,62,830.67
39,19,30,44,038.14
0.00
94,69,13,06,868.81
Reduction
19,69,13,63,661.00
9,13,15,60,972.00
0.00
28,82,29,24,633.00
Net Change
35,80,68,99,169.67
30,06,14,83,066.14
0.00
65,86,83,82,235.81
Indebtedness at the end of the year
i.
Principal Amount
2,71,06,62,72,230.37
1,75,44,12,16,721.21
0.00 4,46,50,74,88,951.58
ii.
Interest due but not paid
0.00
0.00
0.00
0.00
iii.
Interest accrued but not paid
4,07,64,71,554.00
1,52,06,22,684.00
5,59,70,94,238.00
Total (i+ii+iii) 2,75,14,27,43,784.37 1,76,96,18,39,405.21 0.00 4,52,10,45,83,189.58
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
37
6.Remuneration of Directors and Key Managerial Personnel:
(A)Remuneration to Managing Director, Whole-Time Directors and/or Manager:
Sr. No
Particulars of Remuneration
Name of MD/WTD/Manager
Sh. N K Kothari
Dr. M L Gupta
Sh. S S Meena
Sh. P S Arya Sh. P. Ramesh
1. Gross Salary 39,08,314 25,09,956 25,17,590 29,53,606 1,72,160
(a) Salary as per provisions contained in section 17(1) of the Income Tax Act
- - - - -
(b)
Value of perquisites u/s 17(2) Income Tax Act, 1961
-
-
-
-
-
(c)
Profits in lieu of salary under Section 17(3) Income
Tax Act, 1961
-
-
-
-
-
2.
Stock Option
-
-
-
-
-
3.
Sweat Equity
-
-
-
-
-
4.
Commission
-As % of profit
-Others, specify
-
-
-
-
-
5.
Others, please specify
-
-
-
-
-
Total (A)
39,08,314
25,09,956
25,17,590
29,53,606
1,72,160
Ceiling as per the Act
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
38
(B)Remuneration to Other Directors:
(C)Remuneration to Key Managerial Personnel Other Than MD/ Manager/ WTD:
Sr. No
Particulars of Remuneration Name of Key Managerial Personnel
S G V S Subrahmanyam
1. Gross Salary 19,67,676
(a) Salary as per provisions contained in section 17(1) of the Income Tax Act, 1961
-
(b) Value of perquisites u/s 17(2) Income Tax Act, 1961
-
(c) Profits in lieu of salary under Section 17(3) Income Tax Act, 1961
-
2. Stock Option -
3. Sweat Equity -
4. Commission
-As % of profit
-Others (Variable Pay)
-
-
5. Others, please specify -
Total (A) 19,67,676
Sr. No
Particulars of Remuneration Name of Directors Total Amount
Dr. R P Singh Sh. N N Misra
1.
Independent Directors
(a)
Fees for attending board committee meetings
1,15,000
1,25,000
2,40,000
(b)
Commission
-
-
-
(c)
Other, please specify
-
-
-
Total (1)
1,15,000
1,25,000
2,40,000
2.
Other Non Executive Directors
(a)
Fees for attending board committee meetings
-
-
-
(b)
Commission
-
-
-
(c)
Other, please specify
-
-
-
Total (2)
-
-
-
Total (B) = (1+2)
1,15,000
1,25,000
2,40,000
Total Managerial Remuneration
-
-
-
Overall Ceiling as per the Act
-
-
-
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
39
7.PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES
Type Section of the Companies
Act
Brief Description
Details of Penalty /
Punishment/ Compounding fees imposed
Authority [RD / NCLT / COURT]
Appeal made, if any (give
Details) A. COMPANY Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
B. DIRECTORS Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
C. OTHER OFFICERS IN DEFAULT Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
For Rajasthan Rajya Vidyut Utpadan Nigam Limited
(P. Ramesh)DIN-03551794
Chairman & MDVidyut Bhawan, Janpath, Jyoti Nagar,
Jaipur-302005
Place : JAIPURDate : 09.12.2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
40
Annexure-VI
Statement disclosing Related Party Transactions during the financial year 2018-19 in pursuance of provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
S.no In the accounts of Particulars Disclosure of amounts at the year end and the maximum amount of loans/ advances/investments outstanding during the year (in Lakhs.)
1. Rajasthan Rajya Vidyut Utpadan Nigam Ltd. Ltd. (Holding Company)
?Loan to Giral Lignite Power Ltd. (Subsidiary Company)
1,50,746.52
?Loan to Parsa Kente & Collieries Ltd. and Rajasthan Collieries Ltd. (Associate Companies)
Nil
?Loan to Firms/companies in which directors are interested
Nil
2. Giral Lignite Power Ltd. (Subsidiary Company)
?Loan from Rajasthan Rajya Vidyut Utpadan Nigam Ltd.
1,50,746.52
3. Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (Holding Company)
Investments by the loanee in the shares of parent company and subsidiary, when the company has made a loan or advance in the nature of Loan.
Nil
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
41
Annexure-VII
Details of Board Meetings held during the year 2018-19:
Attendance of Directors in Board Meetings:
Note:-The maximum time gap between any two meetings was not more than 120 days.
S. No.
Number and date of Meeting Board’s Strength
Number of Directors present
1. 279th Board Meeting held on 15.05.2018
8 7
2. 280th Board Meeting held on 18.07.2018
8 8
3. 281st Board Meeting held on 24.08.2018
9 9
4. 282nd Board Meeting held on 20.09.2018
9 8
5. 283rd Board Meeting held on 12.11.2018
9 8
6. 284th Board Meeting held on 26.12.2018
9 6
7. 285th Board Meeting held on 28.01.2019
10 8
8. 286th Board Meeting held on 28.02.2019
10 9
9. 287th Board Meeting held on 27.03.2019
9 9
Name of Director
Meetings entitled to attend
Meetings attended
Shri P. Ramesh, IAS
4
4
Shri N K Kothari
5
5
Shri Naresh Pal Gangwar, IAS
3
3
Shri Sanjay Malhotra, IAS 6 5
Shri Kunji Lal Meena, IAS 3 3
Smt. Shakuntala Singh, IAS 7 7
Shri Praveen Gupta, IAS 6 2 Dr.Prithvi Raj 3 1 Dr.Rajendra Prasad Singh 9 8 Shri NarendraNathMisra 9 9 Shri M L Gupta 8 7 Shri S SMeena 9 9 Shri P S Arya
9
9
Details of Meetings of Audit Committee held during the year 2018-19:
Attendance of Members:
S. No. Number and date of Meeting Audit Committee’s Strength
Number of Members present
1. 76th Meeting of Audit Committee held on 15.05.2018
3 3
2. 77th Meeting of Audit Committee held on 18.07.2018
3 3
3. 78th Meeting of Audit Committee held on 24.08.2018
3 3
4. 79th Meeting of Audit Committee held on 20.09.2018
3 3
5. 80th Meeting of Audit Committee held on 12.11.2018
3 3
6. 81st Meeting of Audit Committee held on 26.12.2018
3 3
7. 82nd Meeting of Audit Committee held on 27.03.2019
3 3
Name of Director Meetings entitled to attend
Meetings attended
Shri N K Kothari 5 5 Shri P. Ramesh, IAS 2 2 Dr. Rajendra Prasad Singh 7 7 Shri NarendraNathMisra 7 7
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
42
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
43
Details of Meetings of Borrowings Committee held during the year 2018-19:
Attendance of Members:
S. No. Number and date of Meeting Borrowings Committee’s Strength
Number of Members present
1. 35th Meeting of Borrowings Committee held on 13.04.2018
3 2
2. 36th Meeting of Borrowings Committeeheld on 25.04.2018
3 3
3. 37th Meeting of Borrowings Committee held on 28.06.2018
3 3
4. 38th Meeting of Borrowings Committee held on 14.08.2018
3 3
5. 39th Meeting of Borrowings Committee held on 25.09.2018
3 3
6. 40th Meeting of Borrowings Committee held on 5.11.2018
3 3
7. 41st Meeting of Borrowings Committee held on 13.11.2018
3 3
8. 42nd Meeting of Borrowings Committee held on 21.12.2018
3 3
9. 43rd Meeting of Borrowings Committee held on 15.02.2019
3 3
10. 44th Meeting of Borrowings Committee held on 15.02.2019
3 3
Name of Director Meetings entitled to attend
Meetings attended
Shri N K Kothari 7 7 Shri P. Ramesh 3 3 Shri M L Gupta 10 10 Shri S SMeena 10 9
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
44
A.Conservation of Energy –
Annexure-VIII
Details of Energy Conservation and Technology Absorption for the Financial Year 2018-19
S. No
Particulars Action taken
(i) The steps taken or impact of conservation of energy
Energy Audits have been carried out in the Power Stations of RVUN. Efforts have been made to reduce auxiliary consumption by implementing various schemes to improve Air Heater performance, Corro -coating CW pumps Use of automatic on-off temperature controllers in cooling towers wherever feasible, use of VFDs in CEP and BFP wherever feasible improving operational practices etc. Conventional lighting system is being replaced by LEDs lighting system in a phased manner.
(ii) The steps taken by the company for utilising alternate sources of energy
NIL
(iii) The capital investment on energy conservation equipments
NIL
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
45
B.Technology absorption –
S.No Particulars Action taken (i) The efforts made
towards technology absorption
NIL
(ii) The benefits derived like product improvement, cost reduction, product development or import substitution
NIL
(iii) In case of imported technology (imported during the last years reckoned from the beginning of the financial year):-
(a) The details of technology imported;
(b) The year of import;
(c) Whether the
technology been
fully absorbed;
(d) If not fully
absorbed, areas
where absorption
has not taken
place, and the
reasons thereof;
and
NIL
(iv) The expenditure incurred on research and development.
NIL
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
46
12
34
56
78
910
11
12
13
14
15
CE
(E
&M
) 37400-6
7000
CE
(C
ivil)
10
00
00
037400-6
7000
AC
E (E
&M
) 11
11
03
00
37400-6
7000
AC
E (C
ivil)
20
01
00
037400-6
7000
CC
OA
30
00
20
037400-6
7000
Dy.C
E (E
&M
) 22
32
19
00
15600-3
9100
Dy.C
E (C
ivil)
30
02
10
015600-3
9100
SE
(E&
M)
69
11
84
13
01
15600-3
9100
SE
(Civ
il)
60
00
00
015600-3
9100
SE
(C&
I)2
00
00
00
15600-3
9100
JD
P3
00
01
00
15600-3
9100
CA
O4
00
12
00
15600-3
9100
Jt
Dir
. 1
00
00
00
(Corp
ora
te
Affair
s)-c
um
-CS
15600-3
9100
Ch
ief.C
hem
ist
30
00
00
015600-3
9100
91
11
00
0
An
nexure
-IX
to B
oard
's R
eport
2018-1
9
An
nu
al S
tate
men
t sh
ow
ing t
he r
epre
sen
tati
on
of S
Cs, S
Ts a
nd O
BC
s in
vari
ou
s G
rou
p s
erv
ice d
uri
ng t
he fin
an
cia
l year
2018-1
9 a
nd N
um
ber
of
appoin
tmen
ts m
ade d
uri
ng t
he p
recedin
g fin
an
cia
l year
2018-1
9
Gro
ups
Represen
tati
on
of S
Cs/S
Ts/O
BC
s
(As o
n 3
1.0
3.2
019)
Nu
mber
of appoin
tmen
ts m
ade d
uri
ng t
he fin
an
cia
l year
2018-1
9
Tota
lN
o. of
em
plo
yees
SC
s
SC
sS
Cs
SC
s
STs
STs
STs
STs
OB
Cs
OB
Cs
By D
irect
Recru
itm
en
tB
y P
rom
oti
on
(R
egu
lar)
By O
ther
meth
ods
Tota
lTota
lTota
l
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
47
XE
N(E
&M
)15600-3
9100
XE
N(F
&S
)15600-3
9100
10
0
XE
N(C
ivil)
34
10
47
00
015600-3
9100
XE
N(C
&I)
18
22
55
01
15600-3
9100
DD
P6
10
12
00
15600-3
9100
DS
10
01
10
015600-3
9100
SR
.AO
61
10
00
015600-3
9100
SR
.Ch
em
ist
10
11
11
00
15600-3
9100
AE
N(E
&M
)761
123
77
175
40
01
00
015600-3
9100
AE
N(C
ivil)
43
57
15
00
00
00
015600-3
9100
AE
N(C
&I)
55
85
15
00
00
15
20
15600-3
9100
AE
N(F
&S
)9
00
10
00
00
00
15600-3
9100
AE
N(IT)
81
03
81
03
00
015600-3
9100
Ch
em
ist
30
43
92
00
15600-3
9100
PO
12
22
32
01
00
00
15600-3
9100
AO
23
23
410
12
13
00
15600-3
9100
AS
10
00
25
00
15600-3
9100
Asst.
Dir
. (P
R)
10
00
00
015600-3
9100
AA
O-I
14
31
40
00
9300-3
4800
255
42
32
10
30
0
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
48
JE
N-I
(E&
M)
9300-3
4800
JE
N-I
(Civ
il)
48
11
616
00
00
00
09300-3
4800
JE
N-I
(C&
I)68
12
917
40
55
12
00
09300-3
4800
JE
N-I
(F&
S)
16
22
310
12
10
00
9300-3
4800
Ju
nio
r C
hem
ist
46
76
14
20
41
40
00
9300-3
4800
APO
9300-3
4800
20
32
616
22
60
00
Addl. P
S
40
02
00
09300-3
4800
Adm
n. O
ffic
er(
SO
)1
01
01
01
9300-3
4800
AA
O-I
I 60
96
11
10
20
9300-3
4800
Junio
r Acc
ounta
nt
142
23
12
43
60
89
70
00
9300-3
4800
Addl. A
dm
n.
82
02
60
0O
ffic
er
(OS
-I)
9300-3
4800
Asst.
Adm
n.
13
20
214
20
Offic
er
(OS
-II)
9300-3
4800
Ste
nogra
ph
er
44
75
14
45
75
14
9300-3
4800
Sr.
Asst.
(U
DC
)5200-2
0200
52
31
15
00
0
Jr.
Asst.
(LD
C)
110
16
15
42
103
18
14
39
00
05200-2
0200
Tec
hnic
al W
orkm
en1394
263
100
394
281
52
6
Gro
up -
D
90
28
12
21
00
0(e
xclu
din
g
sw
eepers
)
Tota
l4265
731
417
1086
318
47
41
88
381
58
9
714
122
90
218
00
00
00
0
* G
rou
p D
in
clu
des C
lass I
V &
Help
er-
II.
On
beh
laf
of
the B
oard
of
Dir
ecto
rs
(P. R
am
esh
)D
IN-0
3551794
Ch
air
man
& M
an
agin
g D
irecto
r
Date
: 0
9.1
2.2
019
Pla
ce: Jaip
ur
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
49
12
34
56
78
910
11
12
13
14
15
Gro
up -
A469
73
52
34
00
00
44
02
00
0
Gro
up -
B952
145
97
227
24
23
525
20
00
0
Gro
up -
C2754
485
256
803
294
45
38
83
312
52
60
00
Gro
up -
D
90
28
12
21
00
00
00
00
00
(exclu
din
g
sw
eepers
)
Tota
l4265
731
417
1085
318
47
41
88
381
54
80
00
An
nexure
to P
oin
t N
o. 6 (D
) (i) of
Board
's R
eport
2018-1
9
An
nu
al S
tate
men
t sh
ow
ing t
he r
epre
sen
tati
on
of S
Cs, S
Ts a
nd O
BC
s o
n 3
1.0
3.2
019 a
nd N
um
ber
of appoin
tmen
ts m
ade
du
rin
g t
he fin
an
cia
l year
2018-1
9
Gro
ups
Repre
sen
tati
on
of S
Cs/S
Ts/O
BC
s(A
s o
n 3
1.0
3.2
019)
Nu
mber
of appoin
tmen
ts m
ade d
uri
ng t
he fin
an
cia
l year
2018-1
9
Tota
lN
o. of
em
plo
yees
SC
s
SC
sS
Cs
SC
s
STs
STs
STs
STs
OB
Cs
OB
Cs
By D
irect
Recru
itm
en
tB
y P
rom
oti
on
By D
epu
tati
on
/A
bsorp
tion
Tota
lTota
lTota
l
* G
rou
p D
in
clu
des C
lass I
V &
Help
er
II
On
beh
laf
of
the B
oard
of
Dir
ecto
rs
(P. R
am
esh
)D
IN-0
3551794
Ch
air
man
& M
an
agin
g D
irecto
r
Date
: 0
9.1
2.2
019
Pla
ce: Jaip
ur
Standalone
INDEPENDENT AUDITORS’ REPORT
To The Members of RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
Report on the Standalone Financial Statements
Qualified Opinion
We have audited the accompanying standalone financial statements of RAJASTHAN RAJYA
VIDYUT UTPADAN NIGAM LIMITED (“the Company”), which comprise the Balance Sheet as at
March 31, 2019, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date,
and a summary of the significant accounting policies and other explanatory information
(hereinafter referred to as “the standalone financial statements”). 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 Basis for Qualified opinion paragraph, the aforesaid standalone Ind AS 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 including the Ind
AS, of the state of affairs (financial position) of the Company as at 31st March, 2019, and its profit
(financial performance including other comprehensive income), its cash flows and the changes in
equity for the year ended on that date.
Basis for Qualified Opinion
Refer “Annexure I” (which forms an integral part of this report) which consist of matter relates to
qualification and reservations of which effects is not ascertainable on financial statements that
constituted the basis for modifying our opinion.
We conducted our audit of the standalone financial statements in accordance with the Standards
on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those
Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone
Financial Statements section of our report. We are independent of the Company in accordance
with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together
with the independence requirements that are relevant to our audit of the standalone financial
statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the standalone financial statements.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements:
a) Note 1.8 that Company had acquired 557.14 Bigha of land for Dholpur Gas Power Project
from “M/s RPG Enterprise” through Govt. of Rajasthan. Out of which, 200.01 Bigha of
Land is not yet allotted in favour of RRVUNL as it is appearing as forest land in the revenue
records. Also, no title deed is executed in favour of Company.
b) Note 7.1 that the Company has taken certain assets on lease. Out of these assets, the
ownership of leased assets of the following entities have not been transferred in the name of
the Company after expiry of lease agreements due to pending litigation in court or in
absence of power of attorney. The security deposit equivalent to residual value of the lease
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
50
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
51
assets have already been deposited with lessors’ except M/s ICICI Ltd. for which payment
will be made. The details are as under:
( in Lacs)
S.No. Name of Lessor Lease Value Residual value
1 M/s ICICI ltd. 8,400.00 84.00
2 M/s Indo Nissan Oxo Chemical Ltd. 623.34 155.84
Total 9,023.34 239.84
c) Note 25.1 that Revenue from sale of power consist of late payment surcharge towards
delayed payment by DISCOMs amounting to `192433.19 Lacs which requires to be
accounted as “Other Income” instead of “Revenue from Sale of Power” as a consistent
practice in accordance with RERC Tariff Regulations.
d) Attention is drawn to Note No. 6 of Financial Statements, where it has been stated that
the Company has not recognized DTA as per IND AS-12 “Income Taxes” even though it
has continuously reported profits for the past three years. According to the
management there is no virtual certainty supported by convincing evidence that there
shall be any future tax liability.
Our opinion is not modified in respect of these matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the standalone financial statements of the current period. These matters were
addressed in the context of our audit of the standalone financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. We have
determined that there are no key audit matters to be communicated in our report.
Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The
other information comprises the information included in the Management Discussion and
Analysis, Board’s Report including Annexures to Board’s Report, Business Responsibility Report,
Corporate Governance and Shareholder’s Information, but does not include the standalone
financial statements and our auditor’s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is materially
inconsistent with the standalone financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Management’s Responsibility for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act
with respect to the preparation of these standalone financial statements that give a true and fair
view of the financial position, financial performance, total comprehensive income, changes in
equity and cash flows of the Company in accordance with the Ind AS and other accounting
principles generally accepted in India. This responsibility also includes maintenance of adequate
`
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
52
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 standalone financial
statements that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either intends
to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these standalone financial
statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of such
controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the
standalone financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Company to cease to
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
53
continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial
statements, including the disclosures, and whether the standalone financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a reasonably
knowledgeable user of the financial statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the
results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial
statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards. From the matters communicated with those charged with
governance, we determine those matters that were of most significance in the audit of the
standalone financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and except for the possible effect of the matters described in basis for
Qualified Opinion paragraph, obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, except for the possible effect of the matters described in basis for Qualified
Opinion paragraph, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
d) Except for the possible effect of the matters described in basis for Qualified Opinion
paragraph,in our opinion, the aforesaid standalone financial statements comply with
the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e) Being a Government Company, pursuant to notification No. GSR 463(E) dated 5th June
2015 issued by the Ministry of Corporate Affairs, Government of India, Provision of sub-
section (2) of Section 164 of the Companies Act 2013 are not applicable to the company.
f) 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
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
54
Report in “Annexure II”. Our report expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company’s internal financial controls over financial
reporting.
g) 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, as amended 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 part of pending litigations on its financial
positions in its Standalone Ind AS financial statements. Refer Note 35 to the
Standalone Ind AS financial statements.
ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the
Central Government in terms of Section 143(11) of the Act, we give in “Annexure III” a
statement on the matters specified in paragraphs 3 and 4 of the Order.
3. We are enclosing our report in terms of Section 143(5) of the Act, on the basis of such books,
checks of the books and records of the Company as we considered appropriate and according to
the information and explanation given to us, in “Annexure IV” on the direction and sub-
directions issued by the Comptroller and Auditor General of India.
For B. L. Ajmera & Co.
Chartered Accountants
FRN : 001100C
(Venkatesan Chandra Mouli)
Partner Mem. No. : 010054
UDIN : 19010054AAAABL5329
Place:Jaipur
Date : September 12, 2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
55
ANNEXURE I TO INDEPENDENT AUDITORS’ REPORT
(Referred to in “Basis for Qualified Opinion paragraph in the INDEPENDENT AUDITORS’
REPORT of even date on account of RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED stfor the year ended on 31 March, 2019)
1. Fly Ash Utilization Fund
rdAs per the gazette notification dated 3 November 2009 issued by Ministry of Environment
and Forests (MoEF), Government of India, the amounts collected from sale of fly ash and fly
ash based products shall be kept in a separate account head and be utilized only for
development of infrastructure of facilities, promotion and facilitation activities for use of fly
ash until 100% f1yash utilization level is achieved. In compliance with the said notification,
the company has created a Fly Ash Utilization Fund in the books of accounts to which the
entire sale proceeds of fly ash including interest earned on the fund is transferred.
The company has accumulated balance of ` 275.00 crore in fly ash utilization fund as on
31.03.2019 and the company has utilized accumulated balance in such fund for its own
affairs which is violation of notification dated 3rd November 2009 issued by MoEF,
Government of India.
2. PKCL Price Escalation Dispute
As per Note No. 35.01 Hon’ble Supreme Court vide order dated 27.05.2019 ordered the claim
of Price Adjustment/Escalation in favour of M/s PKCL.
M/s PKCL has claimed an amount of ̀ 314.57 Crores towards Price escalation and an amount
of Rs. 88.05 Crores towards interest on the basis of Hon’ble Supreme Court Judgment.
RVUNL filed Review Petition on dated 25.06.2019 in Hon’ble Supreme Court of India against
the judgment. Hon’ble Supreme Court of India in its judgment dated 24.07.2019 dismissed
the review petition.
The Company has not made any provision for such liability on the contention that the
company is exploring the further legal action in the matter. And the same amount is
recoverable as expenses from Discoms as per RERC tariff Regulations.
We are unable to comment on the contention of the Company as the Company has not
obtained legal opinion in the matter for further legal action. The recoverability of such amount
from Discoms is also subject to filing of the claim as per RERC tariff Regulations.
Non provision of claim resulted in understatement of liability and overstatement of profit
amounting to Rs. 402.62 crores.
3. Leases
The company has applied the Ind AS-17 “Leases” on the basis of materiality concept however
materiality has not been defined in Ind AS-17. We cannot determine the impact of non
application of Ind AS- 17 on other leases which have been considered immaterial by the
management of the company as the required details are not available.
4. Receivables from 100% Subsidiary GIRAL LIGNITE POWER LTD.
Receivable from 100% Subsidiary Company M/s Giral Lignite Power Ltd amounting to Rs
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
56
1507.46 Crores have been impaired retrospectively by providing expected credit loss as per
Ind AS 109 as the net worth of the subsidiary company is fully eroded. The provision of
impairment has been made of Rs.927.85 crore till 31.03.2019 (provision till 31.03.2018 Rs
655.22 Crores).
Since the subsidiary Company has not finalised any revival or disinvestment plan, the
provision made on the basis of expected credit loss where date of repayment cannot be
determined is estimation without any basis, therefore we are unable to comment on the
adequacy of provision made by the company.
5. Property Plant And Equipment, Capital Work In Progress (CWIP) And Depreciation:
Non Current assets- others disclosed in Note No. 7 includes Advance to Suppliers &
Contractors for Capital goods and Other current financial liabilities disclosed in Note No. 21
includes Other Deposits consist of certain old and carried forward balances which are pending
for adjustments and reconciliation. The Effect of the same on Financial Statements is not
ascertainable.
6. LONG OUTSTANDING/UNRECONCILED BALANCES
6.1 DEBIT BALANCES
a) The Company is having some Long Outstanding Debit Balances, which have not
been reconciled. Also, many credit balances are still lying in these account heads. In
absence of proper information, explanations and details, we are unable to quantify
the same.
b) Balances with staff, Earnest Money Deposits, Security Deposits, Misc Deposits
held, Current Liabilities and Provision, Advances to Contractors/Suppliers, etc. are
subject to confirmation and have not been fully reconciled. The balances with other
Companies of Board such as JVVNL, AVVNL and JDVVNL are not reconciled for the
year 2018-19. As explained to us the same are under process. The effect of the same
on the Financial Statements is not ascertainable.
6.2 CREDIT BALANCES
a) The Company is having some Long Outstanding Credit Balances, which have not
been reconciled. Also, some debit balances are lying in these account heads. In
absence of proper information, explanation and details, we are unable to quantify
the same.
b) The Other Current Financial Liabilities include Rs. 6.23 Lakhs payable to M/s Indo
Nissan on account of lease/rent expenses lying unpaid/ unadjusted. This issue was
also raised by C & AG in its Supplementary Audit for the F.Y. 2010-11. We concur
with the view of C&AG that the same should be written back in the books of
Company. However, the Company has not fully adjusted such liability in F.Y. 2018-
19 also.
c) The company has ̀ 98,613.10 lakhs payable to Parsa Kente Collieries Limited (Joint
Venture) as on 31.03.2019 and the same cannot be confirmed. The reconciliation is
under process.
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
57
d) Company’s Liabilities for TDS is subject to reconciliation.
7. GENERAL/OTHER
7.1 Figures of the Contingent Liability as disclosed in respect of pending Court/ Arbitration
/ Legal / Tax related cases, estimated amount of contract and other commitments have
been compiled by respective departments of the company & units. The financial impact
of the same which may arise cannot be reasonably quantified.
7.2 The payment against supply of Wash Coal at STPS, Suratgarh is made on the basis of
actual receipt of Coal. During the course of verification of details pertaining for Wash
Coal, cases have been observed where Actual Quantity of Wash Coal is in Excess of that
mentioned in Railway Receipt (RR). This has resulted into over payment to coal
washeries being payment based upon the quantum of Actual coal received. The
washeries are further benefitted due to additional consideration of Normal Loss @ 0.8%
on standard basis irrespective of Actual Weight being in excess of Railway Receipt or
Actual transit loss, as the case may be. The same cannot be reasonably quantified in
absence of complete and detailed information.
Considering para referred above and in absence of complete details, impact on
assets/liabilities/profit and loss cannot be ascertained.
For B. L. Ajmera & Co.
Chartered Accountants
FRN : 001100C
(Venkatesan Chandra Mouli)
Partner Mem. No. : 010054
UDIN : 19010054AAAABL5329
Place: Jaipur
Date : September 12, 2019
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
58Standalone
ANNEXURE - II TO THE INDEPENDENT AUDITORS’ REPORT
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section
of our report to the Members of RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED 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 RAJASTHAN RAJYA
VIDYUT UTPADAN NIGAM LIMITED (“the Company”) as of March 31, 2019 in conjunction with
our audit of the standalone financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Board of Directors of the Company is 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 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.
Auditor’s Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial
reporting of the Company based on our audit. We conducted our audit in accordance with the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance
Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing
prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit
of internal financial controls. Those Standards and the Guidance Note require that we comply with
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 included obtaining an understanding of
internal financial controls over financial reporting, assessing 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 auditor’s 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 internal financial controls system over financial reporting of the
Company.
Meaning of Internal Financial Controls over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
59Standalone
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 unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
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 explanation given to us and based on our audit, the following
material weaknesses have been identified as at March 31, 2019:
a) According to information and explanation given to us, Internal Audit of the company for the
F.Y. 2018-19 by company’s internal audit wing is under process.
b) As per explanation & information given to us,physical verification of fixed asset is
conducted by Internal Committee at Projects itself. As per physical verification report, there
are no discrepancies in the fixed asset and we relied on physical verification report.
c) As per explanation & information given to us, there is no physical verification report of
inventories available. In the absence of physical verification report, we are not in a position
to comment on discrepancies if any in relation to the physical inventory.
d) As per information & explanation given to us, Reconciliation with DISCOMs is under
process for current year.
e) As per explanation & information given to us, there are certain issues with PKCL (Joint
Venture) as mentioned in Basis for Qualified Opinion which is pending due to dispute
which shows lack of internal control.
f) As per information & explanation given to us, there are certain long outstanding debit and
credit balances standing under different heads such as Balance with Staff, Earnest Money
Deposit, Security Deposit, Misc. Deposit, Current Liabilities and Advance to
contractors/suppliers etc. which are subject to confirmation and reconciliation.
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
statement 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 possible effects of the material weaknesses described above
on the achievement of the objectives of the control criteria, the company has maintained, in
all material respects, adequate internal financial controls over financial reporting and such
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
60Standalone
internal financial control over financial reporting were operating effectively as of 31st
March 2019 based on 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 control over financial reporting issued by ICAI.
We have considered the material weakness identified and reported above in determining
nature, timing and extent of audit test applied in our audit of the March 31st 2019 financial
statements of the company and these material weakness do not affect our opinion on the
financial statements of the company.
In our opinion, to the best of our information and according to the explanations given to us,
the Company has, in all material respects, an adequate internal financial controls system
over financial reporting and such internal financial controls over financial reporting were
operating effectively as at March 31, 2019, 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.
For B. L. Ajmera & Co.
Chartered Accountants
FRN : 001100C
(Venkatesan Chandra Mouli)
Partner Mem. No. : 010054
UDIN : 19010054AAAABL5329
Place: Jaipur
Date : September 12, 2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
61Standalone
ANNEXURE – III TO THE INDEPENDENT AUDITORS’ REPORT
(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’
section of our report to the Members of RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM
LIMITED of even date)
(i) a) The Company is maintaining proper records showing full particulars including
quantitative details and situation of fixed assets.
b) As per explanation & information given to us, physical verification of fixed asset is
conducted by Internal Committee at Projects itself. As per physical verification report,
there are no discrepancies in the fixed asset and we relied on physical verification report.
c) According to the information & explanation given to us and on the basis of our
examination of the records of the company, the title deed of immovable properties are
held in the name of company, except title deeds of following Land not made available to
us. Hence, we are not in position to comment on title of following:
Particulars Location Land Area (In Acres) Amount in ̀ Lacs
Freehold STPS 825.73 385.98
Freehold DCCPP 45.37 122.51
Freehold Mahi Not Available 24.19
Leasehold Mahi 51.01 4.51
Leasehold RGTPP Not Available 1.75
(ii) As per explanation & information given to us, there is no physical verification report of
inventories available. In the absence of physical verification report, we are not in a position
to comment on discrepancies if any in relation to the physical inventory.
(iii) As informed to us, the Company has not granted any loans, secured or unsecured except
advances and payments for goods and services not in the nature of loans, to companies,
firms or other parties listed in the register maintained under section 189 of the Companies
Act, 2013, during the year under audit.
(iv) In our opinion and according to the information and explanations given to us, the Company
has complied with the provisions of section 185 and 186 of the Act, with respect to the loans
and investments made.
(v) The Company has not accepted any deposits from the public within the meaning of
Sections 73 and 74 of the Act and the rules framed there under to the extent notified.
(vi) As per information given to us, Cost Records and Cost Audits under section 148(1)(d) of the
Companies Act 2013 for the financial year 2018-19 are under the process of preparation
but not yet finalised. So, we are unable to examine such records and comment thereon.
(vii) a) As per information and explanations given to us, undisputed statutory dues including
Provident Fund, Income Tax, Goods & Service Tax, Sales Tax, Value Added Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues, to the extent applicable to it, have generally been regularly deposited
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
62Standalone
with the appropriate authorities and there are no undisputed dues outstanding as on
31st March 2019 for a period of more than six months from the date they become
payable.
b) According to the information and explanations given to us, the disputed statutory
dues that have not been deposited on account of matters pending before appropriate
authorities are detailed below:
S. No. Nature of Taxation Forum where dispute is pending Amount
(in lakhs)
1. VAT Matters Rajasthan Tax Board, Ajmer 866.66
2. Stamp Duty Revenue Board, Rajasthan 1,580
3. Water Cess Rajasthan Pollution Control Board 5,704.97
4 Non collection of tax Dy. Commission of Income Tax, circle- 123.99
(TCS) on sale of Fly ash TDS, Udaipur
for A.Y. 2014 to 2018
5 Central ExciseDemand High Court Jodhpur 32.09
6 Service Tax Matter Dy. Commission (Appeals) CGST & 47.57
Central Excise Department, Jodhpur
(viii) As per information and explanations given to us the Company has not defaulted in
repayment of loans taken from financial institutions, banks, Government.
(ix) The company has not raised any money by way of Initial Public Offer or Further Public
Offer. Company is maintaining records for availment and utilization of loans. A perusal of
these records reveals that prima-facie loans are utilized for the purpose they have been
taken. However, we have not made a detailed examination of such utilizations as direct or
proximate linking of sources and utilizations of loans are not available as they are centrally
pooled.
(x) According to the information and explanations given to us, no material fraud by the
Company or on the Company by its officers or employees has been noticed or reported
during the course of our audit.
(xi) According to the information and explanations give to us the provisions of section 197 to
the Act is not Applicable to the Company, being a Government Company vide notification
No. GSR 463E dated 05th June 2015.
(xii) In our opinion and according to the information and explanations given to us, the Company
is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of
the records of the Company, transactions with the related parties are in compliance with
the Sections 177 and 188 of the Companies Act, 2013. Details of transactions with the
related parties have been disclosed in the financial statements as required by applicable
Accounting Standard.
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
63Standalone
(xiv) According to the information and explanations give to us and based on our examination of
the records of the Company, the Company has not made any preferential allotment or
private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of
the records of the Company, the Company has not entered into non-cash transactions with
directors or persons connected with them as per section 192 of Companies Act, 2013.
Accordingly, clause xv of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of
India Act 1934.
For B. L. Ajmera& Co.
Chartered Accountants
FRN : 001100C
(Venkatesan Chandra Mouli)
Partner Mem. No. : 010054
UDIN : 19010054AAAABL5329
Place: Jaipur
Date : September 12, 2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
64
ANNEXURE IV TO INDEPENDENT AUDITORS’ REPORT
(Referred to in paragraph 3 under “Report on Other Legal and Regulatory Requirements” in
the Independent AUDITORS’ Report of even date on account of RAJASTHAN RAJYA VIDYUT
UTPADAN NIGAM LIMITED for the year ended on 31st March, 2019)
PART-A
Whether the company has system in
place to process all the accounting
transactions through IT System? If yes,
the implications of processing of
accounting transactions outside IT
System on the integrity of the accounts
along with the financial implications, if
any, maybe stated.
Whether there is any restructuring of any
existing loan or cases of waiver/ write off
of debts/ loans/ interest etc. made by a
lender to a company due to the
company’s inability to repay the loan? If
yes, the financial impact may be stated.
Whether funds received/ receivable for
specific schemes from Central/ State
agencies were properly accounted for/
utilized as per its terms and conditions?
List the cases of deviation.
The company has a system in place to
process all the transactions through IT
systems (Tally ERP 9). Wherever there are
transactions outside IT Systems, they are
having sufficient checks and measures to
satisfy the integrity of accounting.
There is no restructuring of any existing
loan or cases of waiver/ write off of debts/
loans/ interest etc. made by a lender to a
company due to the company’s inability
to repay the loan.
The funds received/ receivable for
specific schemes from Central/ State
agencies are properly recorded and
utilized as per the terms and conditions.
S.No. General Direction Remarks
1.
2.
3.
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
65
PART-B
In the cases of Thermal Power Projects, compliance of the various Pollution Control Act and the impact thereof including utilization and disposal of ash and the policy of the company in this regard, may be checked and commented upon.
Has the company entered into revenue
sharing agreement with private parties
for extraction of coal at pitheads and it
adequately protect the financial interest
of the company?
Does the company have a proper system
of reconciliation of quantity of coal
ordered and received and whether grade
of coal/moisture and demurrage etc. are
properly recorded in the books of
accounts?
Acco rd ing t o in f o rmat i on and explanation given to us that the company followed the compliance laid under Pollution Control Act and deposited fees regularly. Further the company is not following the guidelines of MoEF in respect of utilization of fly ash utilization fund. As company has utilized amount of fly ash utilization fund for its own affairs which is violation of notification dated 3rd November 2009 issued by MoEF, Government of India.
The company has entered into Joint
venture with Adani Enterprises Limited
for extraction and supply of coal from its
own captive coal mines to its coal
pro jects . Further according to
information and explanation given to us,
the financial interests of the company are
adequately protected.
The company has the system of
reconciliation of quality/quantity of coal
ordered through store receipts no. and
checks the grade of coal received. Various
claims in this regards lodged to SECL but
as per accounting policy of the company,
such claims are not recorded in books of
accounts. Demurrage has been booked in
the books of account.
S.No. Specific Direction (Sub Direction) Remarks
1.
2.
3.
For B. L. Ajmera & Co.
Chartered Accountants
FRN : 001100C
(Venkatesan Chandra Mouli)
Partner
Mem. No. : 010054
UDIN: 19010054AAAABL5329
Place : Jaipur
Date : September 12, 2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
66
CIN-U40102RJ2000SGC016484
stSTANDALONE BALANCE SHEET AS AT 31 MARCH, 2019
Particulars NotesAs at
st31 March, 2018
As atst
April,1 2017*
As atst31 March, 2019
ASSETS
Non-Current Assets
(a) Property, Plant and Equipment 1 20,71,213.46 17,06,903.34 18,05,341.06
(b) Capital Work-in-Progress 2 13,22,298.30 16,21,392.95 13,65,266.85
(c) Intangible Assets 3 15,523.93 14,866.46 15,088.05
(d) Financial Assets
(i) Investments 4 10.00 18,510.00 37,015.00
(ii) Others 5 10,331.13 12,075.11 16,151.81
(e) Deferred Tax Assets(Net) 6 - - -
(f) Other Non-Current Assets 7 66,255.89 70,412.03 56,296.48
Total Non- Current Assets 34,85,632.72 34,44,159.91 32,95,159.25
Current Assets
(a) Inventories 8 1,08,288.89 50,258.08 89,308.00
(b) Financial Assets
(i) Trade Receivable 9 18,40,955.48 11,24,059.04 9,80,773.36
(ii) Cash and Cash Equivalents 10 16,899.38 9,906.27 6,832.30
(iii) Bank Balances other than
(ii) above 10A 9,193.32 5,720.91 7,447.62
(iv) Loans 11 350.44 353.08 355.15
(v) Others 12 2,73,964.68 2,40,692.10 2,26,218.58
(c) Other Current Assets 13 59,434.62 41,790.21 22,683.95
Total Current Assets 23,09,086.81 14,72,779.69 13,33,618.96
Total Assets 57,94,719.53 49,16,939.59 46,28,778.21
EQUITY AND LIABILITIES
Equity
(a) Equity Share Capital 14 10,06,795.00 9,67,542.00 9,35,882.00
(b) Other Equity 15 (4,10,780.38) (4,17,805.30) (4,79,280.06)
Total Equity 5,96,014.62 5,49,736.70 4,56,601.94
LIABILITIES
Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings 16 40,05,185.86 35,17,389.87 32,68,296.65
(ii) Other Financial Liabilities 17 396.50 941.98 16,489.99
(b) Provisions 18 12,463.15 11,311.79 10,079.64
Total Non-Current Liabilities 40,18,045.51 35,29,643.64 32,94,866.27
Standalone
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
67
Particulars
Current Liabilities
(a) Financial Liabilities
(i) Borrowings 19 1,15,322.89 1,07,133.15 50,000.00
(ii) Trade Payables 20
Total outstanding dues of micro and small - - -enterprises
Total outstanding dues of creditors other 2,20,142.75 86,859.16 1,99,646.83than micro and small enterprises
(iii) Other Financial Liabilities 21 7,26,336.54 5,42,890.75 5,36,749.37
(b) Other Current Liabilities 22 6,790.79 1,808.60 1,823.98
(c) Provisions 23 46,876.46 34,173.64 24,395.87
Total Current Liabilities 11,15,469.44 7,72,865.30 8,12,616.05
Deferred Revenue on account of Advances 24 65,189.95 64,693.95 64,693.95against Depreciation
Total Equity and Liabilities 57,94,719.53 49,16,939.59 46,28,778.21
Significant Accounting Policies and Notes to Accounts on Financial Statements I & II
* Restated- Refer Note No.- 35.23
Standalone
For and on Behalf of the Board of Directors As per our separate report of even date
(P. Ramesh)Chairman & Managing Director
DIN : 03551794
( )Director
DIN : 03319346
S.S. Meena B.L. Ajmera & Co.Chartered Accountants
FRN-001100C
(Y.K. Upadhyay)Chief Controller of Accounts
(SGVS Subrahmanyam)Jt. Dir. (Corp. Aff.)-cum-
Company SecretaryM.No. FCS-3962
(Venkatesan Chandra Mouli)(Partner)
M.No.: 010054
Place : JaipurDate : 12-09-2019
NotesAs at
st31 March, 2018
As atst
April,1 2017
As atst31 March, 2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
68
CIN - U40102RJ2000SGC016484
STATEMENT OF PROFIT AND LOSS FOR THE ENDED stYEAR 31 MARCH, 2019
Particulars NotesFor the Year ended
ston 31 March, 2019
For the Year endedston 31 March,
2018
INCOME
Revenue From Operations 25 14,48,744.93 12,78,410.99
Other Income 26 8,315.03 5,917.21
Total Income 14,57,059.96 12,84,328.19
EXPENSES
Generation & Other Direct Expenses 27 8,73,819.69 7,27,843.24
Repairs & Maintenance 28 31,127.19 22,320.96
Employee Benefits Expense 29 39,182.89 34,998.10
Finance Costs 30 3,09,823.15 2,68,628.24
Depreciation and Amortization Expense 31 1,31,930.66 1,17,295.43
Other Expenses 32 11,571.92 10,881.36
Total Expenses 13,97,455.49 11,81,967.33
Profit/(loss) before exceptional items and tax 59,604.47 1,02,360.86
Exceptional Items
Impairment Loss 33 (45,762.46) (41,634.45)
Profit/(loss) before tax 13,842.00 60,726.41
Tax Expense:
(1) Current Tax - -
(2) Deferred Tax - -
Profit (Loss) for the period from continuing 13,842.00 60,726.41operations
Profit/(loss) for the period 13,842.00 60,726.41
Other Comprehensive Income
A (i) Items that will not be reclassified to profit or loss (8,963.88) (5,998.87)
(ii) Income tax relating to items that will not be reclassified to profit or loss - -
B (i) Items that will be reclassified to profit or loss - -
ii) Income tax relating to items that will be reclassified to profit or loss - -
Total Comprehensive Income for the period 4,878.12 54,727.54 (Comprising Profit /(Loss) and Other Comprehensive Income for the period)
Earnings per Equity Share (for continuing operation):
(1) Basic 34 0.14 0.64
(2) Diluted 34 0.14 0.64
Standalone
( in Lakhs )`
For and on Behalf of the Board of Directors As per our separate report of even date
(P. Ramesh)Chairman & Managing Director
DIN : 03551794
( )Director
DIN : 03319346
S.S. Meena B.L. Ajmera & Co.Chartered Accountants
FRN-001100C
(Y.K. Upadhyay)Chief Controller of Accounts
(SGVS Subrahmanyam)Jt. Dir. (Corp. Aff.)-cum-
Company SecretaryM.No. FCS-3962
(Venkatesan Chandra Mouli)(Partner)
M.No.: 010054
Place : JaipurDate : 12-09-2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
69
CIN - U40102RJ2000SGC016484
ST STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 MARCH, 2019
ParticularsFor the year ended
st31 March 2019
Details Amount Details Amount
For the year endedst31 March 2018
A. Cash Flow from Operating Activity
Net profit before tax as per Statement of Profit & Loss 13,842.00 60,726.41
Adjusted for:
Depreciation & Amortization 1,32,290.12 1,17,517.01
Rebate received from PFC (3,835.90) (3,890.84)
Interest Expenditure 3,09,805.78 2,68,460.83
Profit on sale of Property, Plant & Equipments (182.75) -
Increase in Fly Ash Utilisation Fund 6,749.80 8,779.22
Deferred Revenue on account of advance against depreciation 496.00 -
Interest Unwinding 17.36 163.74
Adjustment in SD/RM - (54.59)
Deferred Revenue Expenditure - W/off - 3.68
Provision made/(written back) 4,890.30 5,011.06
Provision for Impairment 18,500.00 18,505.00
Interest Income from Investments/Deposits (812.80) 4,67,917.92 (426.92) 4,14,068.19
Operating Profit before Working Capital Changes 4,81,759.92 4,74,794.60
Adjusted for:
(Increase)/Decrease Other non current Financial assets 1,743.98 4,076.70
(Increase)/Decrease Other non current assets 31.05 (41.96)
(Increase)/Decrease in Inventory (58,030.82) 39,049.93
(Increase)/Decrease Trade receivable (7,16,896.44) (1,43,285.68)
(Increase)/Decrease Bank balances other than cash and (3,472.41) 1,726.70 cash equivalent
(Increase)/Decrease Financial assets-loan 2.64 2.07
(Increase)/Decrease in Other Current Financial Assets (34,940.08) (14,442.26)
(Increase)/Decrease in Other Current Assets (17,644.41) (19,109.93)
Increase/(Decrease) in Other Non current Financial Liabilities (545.49) (15,493.42)
Increase/(Decrease) in Trade Payables 1,33,283.59 (1,12,787.67)
Increase/(Decrease) in Other Current Financial Liabilities 13,113.90 27,356.95
Increase/(Decrease) in Other Current Liabilities 4,982.19 (6,78,372.30) (15.38) (2,32,963.95)
Cash Generated from Operations (1,96,612.37) 2,41,830.65
Taxes paid - -
Net Cash from Operating Activity (A) (1,96,612.37) 2,41,830.65
B. Cash Flow from Investing Activity
Purchase of fixed assets (1,98,374.35) (2,74,983.81)
Advance against purchase of fixed assets 4,125.09 (14,073.59)
Sale of Fixed Assets 395.00 -
Income from Investments/Deposits 2,479.35 395.67
Net Cash Flow from Investing Activity(B) (1,91,374.91) (2,88,661.72)
C. Cash Flow from Financing Activity
Proceeds from issuance of share capital and share 34,650.00 29,628.00Application Money
Proceeds from Borrowing 9,46,913.07 7,88,918.89
Standalone
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
70
Repayments of Borrowing (2,88,229.25) (4,96,260.80)
Rebate Received From PFC 3,835.90 3,890.83
Interest Paid (3,02,189.33) (2,76,271.88)
Net cash used in Financing Activity (C) 3,94,980.39 49,905.05
Net increase/decrease in cash and cash equivalents(A+B+C) 6,993.11 3,073.97
Cash and cash equivalents at the beginning of the year 9,906.27 6,832.30
Cash and cash equivalents at the close of the year 16,899.38 9,906.27
Particulars
Cash and Cash Equivalent includes:- (Refer Note No. 10)
Particulars As at31.03.2018
As at31.03.2019
Cash in hand 3.54 3.92
Money in transit 22.20 28.81
Balance With Scheduled Bank 16,873.04 9,872.19
SBI CC Account - 0.68
Balance in PD Account 0.30 0.30
Cash imprest with staff 0.29 0.37
Total 16,899.38 9,906.27
Cash and Cash equivalents include restricted Bank Bal. of Lakhs (P.Y Lakhs). These restrictions are primarily on account of cash and bank balances held as margin money deposits against bank guarantee and Letter of Credit issued.
` 13,467.92 ` 6,035.28
Standalone
( in Lakhs )`
Details Amount Details Amount
For the Year endedst31 March 2019
For the year endedst31 March 2018
For and on Behalf of the Board of Directors As per our separate report of even date
(P. Ramesh)Chairman & Managing Director
DIN : 03551794
( )Director
DIN : 03319346
S.S. Meena B.L. Ajmera & Co.Chartered Accountants
FRN-001100C
(Y.K. Upadhyay)Chief Controller of Accounts
(SGVS Subrahmanyam)Jt. Dir. (Corp. Aff.)-cum-
Company SecretaryM.No. FCS-3962
(Venkatesan Chandra Mouli)(Partner)
M.No.: 010054
Place : JaipurDate : 12-09-2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
71
STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED st31 MARCH, 2019
A. Equity Share Capital
For the year 2018-19 ( in Lakhs )`
( in Lakhs )`
( in Lakhs )`
Balance at the beginning of the reporting
period
9,67,542.00
Changes in equity share
capital during the year
39,253.00
Balance at the end of
the reporting period
10,06,795.00
For the year 2017-18
9,35,882.00 31,660.00
Changes in equity share
capital during the year
Balance at the end of
the reporting period
9,67,542.00
Balance at the beginning of the reporting
period
B. Other Equity
CIN - U40102RJ2000SGC016484
Standalone
Capital Reserve Fly Ash Fund Retained Earningsst As at 1 April 2018 4,603.00 # 20,750.66 (4,43,158.96) (4,17,805.30)
Profit for the period 13,842.00 13,842.00
Other comprehensive income (8,963.88) (8,963.88)
Total Comprehensive Income for
the Year4,878.12 4,878.12
Share application money pending
allotment received during the year 34,650.00 34,650.00
Issue of share capital (39,253.00) (39,253.00)
Addition to Fly Ash Fund during the
year6,749.80 6,749.80
Utilisation of Fly Ash Fund during
the year-
Transfer to retained earnings -
As At 31 March 2019st - # 27,500.46 (4,38,280.83) (4,10,780.37)
Reserve and surplusParticulars
Share application
money pending
allotment
Total
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
72Standalone
Particulars Total
Capital Reserve Fly Ash Fund Retained Earnings
As at 1 April 201 st 7 6,635.00 # 11,971.43 (4,97,886.50) (4,79,280.06)
Profit for the period 60,726.41
60,726.41
Other comprehensive income (5,998.87)
(5,998.87)
Total
Comprehensive
Income for the
Year-
- - 54,727.54 54,727.54
Share application
money pending
allotment received
during the year 29,628.00
29,628.00
Issue of share capital (31,660.00)
(31,660.00)
Addition to Fly Ash
Fund during the
year 8,779.22
8,779.22
Utilisation of Fly
Ash Fund during the yearTransfer to retained
earnings
As At 31 March st
20184,603.00
# 20,750.66
(4,43,158.96)
(4,17,805.30)
Reserve and surplusShare application
money pending
allotment
( in Lakhs )`
# 2 as at 31.03.201 and 31.03.201` 9 8
For and on Behalf of the Board of Directors As per our separate report of even date
(P. Ramesh)Chairman & Managing Director
DIN : 03551794
( )Director
DIN : 03319346
S.S. Meena B.L. Ajmera & Co.Chartered Accountants
FRN-001100C
(Y.K. Upadhyay)Chief Controller of Accounts
(SGVS Subrahmanyam)Jt. Dir. (Corp. Aff.)-cum-
Company SecretaryM.No. FCS-3962
(Venkatesan Chandra Mouli)(Partner)
M.No.: 010054
Place : JaipurDate : 12-09-2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
73
RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED
Notes to Financial Statements
A. Company Information
1. Background
RRVUNL is a company limited by shares (CIN U40102RJ2000SGC016484), incorporated and
domiciled in India. Address of the Company’s registered office is Vidyut Bhawan, Janpath,
Jyoti Nagar, Jaipur - 302005. The Company is primarily engaged in the generation and sale of
bulk power to State Power Utilities. The bonds of the Company are publicly traded on BSE.
2. Statement of Compliance
These financial statements are prepared on accrual basis of accounting and comply in all
material aspects with the Indian Accounting Standards (Ind AS) notified under the
Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendments
thereto, the Companies Act, 2013 (to the extent notified and applicable), applicable
provisions of the Companies Act, 1956, and the provisions of the Electricity Act, 2003 to the
extent applicable. These are the Company’s first Ind AS compliant financial statements and
Ind AS 101 ‘First Time Adoption of Indian Accounting Standards’ has been applied.
These financial statements were authorized for issue by Board of Directors on 12 September,
2019.
3. Basis of measurement
The Company follows Mercantile System of Accounting and recognizes significant items of
income and expenditure on accrual basis. The financial statements have been prepared on
the historical cost basis except for:
• Certain financial assets and liabilities (including derivative instruments) that are
measured at fair value (refer accounting policy regarding financial instruments); and
• Plan assets in the case of employees defined benefit plans that are measured at fair
value.
The methods used to measure fair values are discussed in notes to the financial statements.
Historical cost is the amount of cash or cash equivalents paid or the fair value of the
consideration given to acquire assets at the time of their acquisition or the amount of
proceeds received in exchange for the obligation, or at the amounts of cash or cash
equivalents expected to be paid to satisfy the liability in the normal course of business.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.
4. Functional and Presentation Currency
These financial statements are presented in Indian Rupees (INR), which is the Company’s
functional currency. All financial information presented in INR has been rounded to the
nearest lacs (upto two decimals), except as stated otherwise.
5. Current and non-current classification:
The Company presents assets and liabilities in the balance sheet based on current/non-
current classification.
An asset is current when it is:
• Expected to be realized or intended to be sold or consumed in normal operating cycle;
• Held primarily for the purpose of trading;
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
74
• Expected to be realized within twelve months after the reporting period; or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in normal operating cycle;
• It is held primarily for the purpose of trading;
• It is due to be settled within twelve months after the reporting period; or
• There is no unconditional right to defer settlement of the liability for at least twelve
months after the reporting period.
All other liabilities are classified as non-current.
Deferred tax assets/liabilities are classified as non-current.
B. Significant accounting policies
1. Property, plant and equipment
i. Recognition, Measurement and Derecognition
a. An item of property, plant and equipment is recognized as an asset if and only if it is
probable that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably.
b. Items of property, plant and equipment are measured at cost less accumulated
depreciation/ amortization and accumulated impairment losses. Cost includes
expenditure that is directly attributable to bringing the asset, inclusive of non-
refundable taxes & duties, to the location and condition necessary for it to be
capable of operating in the manner intended by management.
c. When parts of an item of property, plant and equipment have different useful lives,
they are recognized separately.
d. In the case of assets put to use, where final settlement of bills with contractors is yet
to be effected, capitalization is done on provisional basis subject to necessary
adjustment in the year of final settlement.
e. Assets and systems common to more than one generating unit are capitalized on the
basis of engineering estimates/assessments.
f. Expenditure on major inspection and overhauls of production plant is capitalized,
when it meets the asset recognition criteria.
g. Items of spare parts and servicing equipment which meet the definition of Property,
Plant and Equipment are capitalized. Other spare parts are carried as inventory and
recognized in the statement of profit and loss on consumption.
h. Subsequent expenditure is recognized as an increase in the carrying amount of the
asset when it is probable that future economic benefits deriving from the cost
incurred will flow to the enterprise and the cost of the item can be measured reliably.
i. Property, Plant and Equipment are derecognised when no future economic benefits
are expected from their use or upon their disposal. Gains and losses on disposal of
an item of property, plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of property, plant and equipment,
and are recognized in the statement of profit and loss.
j. In case of receipt of the completion report in respect of capital works is pending, the
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
75
works completed are transferred to Property, plant and equipment on the basis of
the statements approved by the head of the project.
ii. Depreciation/amortization
a. Depreciation is being charged on straight line method following the rates and
methodology notified by the Rajasthan Electricity Regulatory Commission (Terms
and Conditions for Determination of Tariff) Regulations generally in accordance
with the provision of Schedule II of the Companies Act, 2013.
b. Depreciation on additions to/deductions from property, plant and equipment
during the year is charged on pro-rata basis from/up to the day on in which the
asset is available for use/disposal.
c. When it is probable that future economic benefits deriving from the cost incurred
will flow to the enterprise and the cost of the item can be measured reliably,
subsequent expenditure on PPE viz. Renovation & Modernisation expenditure are
depreciated prospectively over the useful life determined by technical assessment
for such expenditure.
2. Capital work-in-progress
i. The cost of self-constructed assets includes the cost of materials & direct labour, any
other costs directly attributable to bringing the assets to the location and condition
necessary for it to be capable of operating in the manner intended by management and
borrowing costs. The material lying at site for capital works are being shown as capital
works in progress.
ii. Expenses directly attributable to construction of property, plant and equipment
incurred till they are ready for their intended use are identified and allocated on a
systematic basis on the cost of related assets.
3. Intangible assets
i. An intangible asset is recognized if and only if it is probable that the expected future
economic benefits that are attributable to the asset will flow to the Company and the cost
of the asset can be measured reliably.
ii. Intangible assets that are acquired by the Company, which have finite useful lives, are
measured at cost less accumulated amortization and accumulated impairment losses.
Cost includes any directly attributable incidental expenses necessary to make the assets
ready for its intended use.
iii. Mining rights and all related cost thereof are amortized on the basis of actual annual
quantity delivered to the total estimated mineable reserves as per approved mines
closure plan.
iv. Other intangible assets are amortised on straight line basis over their useful life.
4. Leases
i. Leases where the Company, as lessee has substantially all risks and rewards of
ownership are classified as finance lease. On initial recognition, assets held under
finance leases are recorded as property, plant and equipment and the related liability is
recognized under borrowings. At inception of the lease, finance leases are recorded at
amounts equal to the fair value of the leased asset or, if lower, the present value of the
minimum lease payments. Minimum lease payments made under finance leases are
apportioned between the finance expense and the reduction of the outstanding liability.
ii. An operating lease is a lease other than a finance lease. Lease payments under an
operating lease shall be recognised as an expense on a straight-line basis over the lease
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
76
term unless another systematic basis is more representative of the time pattern.
5. Borrowing costs
i. Borrowing costs consist of (a) interest expense calculated using the effective
interest method as described in Ind AS 109 - 'Financial Instruments' (b) finance
charges in respect of finance leases recognized in accordance with Ind AS 17 -
'Leases' and (c) exchange differences arising from foreign currency borrowings to
the extent that they are regarded as an adjustment to interest costs.
ii. Borrowing costs that are directly attributable to the acquisition, construction/
exploration/ development or erection of qualifying assets are capitalized as part of cost of
such asset until such time the assets are substantially ready for their intended use.
Qualifying assets are assets which take a substantial period of time to get ready for their
intended use or sale. Capitalization of the borrowing costs in respect of General
Borrowing used for the purpose of obtaining a qualifying is computed based on the
weighted average cost of such borrowing that are outstanding during the period and
used for the acquisition, construction/exploration or erection of the qualifying asset.
iii. Capitalization of borrowing costs ceases when substantially all the activities necessary
to prepare the qualifying assets for their intended uses are complete.
iv. Other borrowing costs are recognized as an expense in the year in which they are
incurred.
v. Income earned on temporary investment of the borrowings pending their expenditure on
the qualifying assets is deducted from the borrowing costs eligible for capitalization.
6. Inventories
i. Inventories are valued at the lower of cost and net realizable value. Cost includes cost of
purchase, cost of conversion and other costs incurred in bringing the inventories to their
present location and condition. Weighted average method has been used to work out the
pricing of issues and valuation of inventories.
ii. Low value items of consumables are fully charged to statement of profit and loss.
7. Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and
short-term deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value.
8. Government grants
Government grants are recognized initially as deferred income when there is reasonable
assurance that they will be received and the Company will comply with the conditions
associated with the grant. Grants that compensate the Company for the cost of an asset are
recognized in profit or loss on a systematic basis over the useful life of the related asset.
Grants that compensate the Company for expenses incurred are recognized over the period in
which the related costs are incurred and deducted from the related expenses.
9. Fly ash utilization reserve fund
i. Sale of fly ash is accounted for based on the rates agreed with the customers. Sale
proceeds are credited under separate account head “Fly Ash Utilization Fund” in
accordance with the gazette notification dated 3rd November 2009 issued by Ministry of
Environment and Forests (MoEF), Government of India.
ii. Income earned on this fund, if any, is also credited to the fund.
iii. Expenses incurred by the company in relation to utilization of fly ash are charged to the
“Fly Ash Utilization Fund”
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
77
10. Provisions, Contingent Liabilities and Contingent Assets
i. A provision is recognized if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. If the effect of the time value of
money is material, provisions are determined by discounting the expected future cash flows
at a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. When discounting is used, the increase in the provision due to
the passage of time is recognized as a finance costs.
The amount recognized as a provision is the best estimate of the consideration required to
settle the present obligation at reporting date, taking into account the risks and
uncertainties surrounding the obligation.
Contingent Liabilities are possible obligation that arise from past events and whose
existence will only be confirmed by occurrence and non-occurrence of one or more future
events not wholly within the control of company . Where it is not probable that an outflow of
economic benefits will be required, or the amount cannot be estimated reliably, the
obligation is disclosed as a contingent liability, unless the probability of outflow of economic
benefits is remote. Contingent liabilities are disclosed on the basis of judgment of the
management/independent experts. These are reviewed at each balance sheet date and are
adjusted to reflect the current management estimate.Contingent assets are possible assets
that arise from past events and whose existence will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the control of the
Company. Contingent assets are disclosed in the financial statements when inflow of
economic benefits is probable on the basis of judgment of management. These are assessed
continually to ensure that developments are appropriately reflected in the financial
statements.
11. Foreign currency transactions and translation
Transactions in foreign currencies are initially recorded at the functional currency spot rates at
the date the transaction first qualifies for recognition.
Monetary assets and liabilities related to foreign currency transactions remaining unsettled at
the year end are translated at the year end rate and the difference in translation and realized
gains and losses on foreign exchange transactions (other than for Property, plant and equipment)
are recognized in the Statement of Profit and Loss .
Non-monetary items are measured in terms of historical cost in a foreign currency are translated
using the exchange rate at the date of the transaction.
12. Revenue from Operations
Effective 1 April 2018, the company has adopted Ind AS 115 “Revenue from contracts with
Customers” using the cumulative effect method, applied to the contracts that were not completed
as of 1 April 2018 and therefore the comparatives have not been restated and continues to be
reported as per Ind AS 18 “Revenue” and Ind AS 11 “Construction Contracts”. The details of
accounting policies as per Ind AS 18 and Ind AS 11 are disclosed separately if they are different
from those under Ind AS 115.
Revenue is measured based on the consideration that is specified in a contract with a customer or
expected to be received in exchange for the products or services and excludes amounts collected
on behalf of third parties. The company recognizes revenue when (or as) the performance
obligation is satisfied, which typically occurs when (or as) control over the products or services is
transferred to a customer.
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
78
Revenue from sale of power is accounted for on accrual basis and is billed on Discoms as per the
power station wise tariff approved by Rajasthan Electricity Regulatory Commission subject to
finalization of truing up order. In case of power stations where the final tariff rates are yet to be
approved, provisional rates as provided by the Regulator are adopted. The energy sold to each
Discom is arrived at by apportioning the total units sold by all the power stations of RVUNL
amongst JVVNL, AVVNL and JDVNL in the approved ratio determined and conveyed by the
Government of Rajasthan from time to time.
In the Comparative period, Revenue from the sale of energy is measured at the fair value of the
consideration received or receivable. Revenue is recognized when the significant risks and
rewards of ownership have been transferred to the buyer, recovery of the consideration is
probable, the associated costs can be estimated reliably, there is no continuing management
involvement, and the amount of revenue can be measured reliably.
Advance against Depreciation considered as deferred revenue in earlier years included in sales,
to the extent depreciation recovered in tariff during the year is lower than the corresponding
depreciation charged.
Any surplus or deficit arising as a result of truing up order on the basis of audited annual
accounts is adjusted in the year of issue of truing up order by the RERC.
13. Other Income
i. Sale of scrap is accounted for as and when sold.
ii. The rebate (by way of reduction in the interest rate) in interest under AG&SP scheme of Govt. of
India on loan given by PFC are directly deducted from interest cost and not separately shown as
income and accordingly net interest is charged to Statement of Profit and Loss.
iii. Interest on loans and advances to staff is recovered after completion of recovery of principal
amount and is recorded/accounted for on receipt basis.
14. Employee benefits
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.
The defined benefit plan in respect of pension & gratuity liabilities are funded through trust on
the basis of contribution by RVUN along with other successor entities of erstwhile RSEB. Such
contribution paid/payable is recognized in the statement of profit and loss.
The Company’s net obligation in respect of defined benefit plans is calculated separately for each
plan by estimating the amount of future benefit that employees have earned in return for their
service in the current and prior periods; that benefit is discounted to determine its present value.
Any unrecognized past service costs and the fair value of any plan assets are deducted. The
discount rate is based on the prevailing market yields of Indian government securities as at the
reporting date, having maturity dates approximating the terms of the Company’s obligations and
are denominated in the same currency in which the benefits are expected to be paid.
The calculation is performed annually by a qualified actuary using the projected unit credit
method. Any actuarial gains or losses are recognized in OCI in the period in which they arise.
The benefit of provident fund is covered under defined contribution plan. Obligations for
contributions to defined contribution plans are recognized as an employee benefits expense in
profit or loss in the period during which services are rendered by employees. The Company pays
fixed contribution to Provident Fund at predetermined rates .
Short term employee benefits are recognised as an expense at the time of actual payment in the
statement of profit & loss.
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
79
15. Income tax
Income tax expense comprises current and deferred tax. Current tax expense is recognized in
profit or loss except to the extent that it relates to items recognized directly in other
comprehensive income or equity, in which case it is recognized in OCI or equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates
enacted or substantively enacted and as applicable at the reporting date, and any adjustment
to tax payable in respect of previous years.
Deferred tax is recognized using the balance sheet method, providing for temporary
differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax
rates that are expected to be applied to temporary differences when they reverse, based on the
laws that have been enacted or substantively enacted by the reporting date. Deferred tax
assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority.
Deferred tax is recognized in profit or loss except to the extent that it relates to items
recognized directly in OCI or equity, in which case it is recognized in OCI or equity.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits
will be available against which the temporary difference can be utilized. Deferred tax assets
are reviewed at each reporting date and are reduced to the extent that it is no longer probable
that the related tax benefit will be realized.
16. Additional income taxes that arise from the distribution of dividends are recognized at
the same time that the liability to pay the related dividend is recognized.
Other Miscellaneous Expenditure
i. Expenses on training and recruitment, research and development are charged to revenue.
ii. Claims for grade difference, shortage of coal etc. lodged on coal companies are accounted for
as and when the credit notes are received by adjusting/recognizing the same in the Profit and
Loss account in the year of its receipt, irrespective of the period to which it pertains. No
provision is made for above claims due to uncertainty of its receipt.
iii. Debit /credit notes on account of fuel (coal/gas/oil etc.) are accounted for as and when these
are received irrespective of the period it pertains.
iv. Generation linked incentive and productivity award admissible to the officers/employees of
the Power Stations are accounted for on cash basis.
v. The premium, if any, paid to Financial Institutions / Banks on debt restructuring are
deferred and charged to statement of Profit and Loss over the balance period of the loan.
17. Material prior period errors
Material prior period errors are corrected retrospectively by restating the comparative
amounts for the prior periods presented in which the error occurred. If the error occurred
before the earliest prior period presented, the opening balances of assets, liabilities and
equity for the earliest prior period presented, are restated.
18. Earnings per share
i. Basic earnings per equity share is computed by dividing the net profit or loss
attributable to equity shareholders of the Company by the weighted average number of
equity shares outstanding during the financial year.
ii. Diluted earnings per equity share is computed by dividing the net profit or loss
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
80
attributable to equity shareholders of the Company by the weighted average number of
equity shares considered for deriving basic earnings per equity share and also the
weighted average number of equity shares that could have been issued upon conversion
of all dilutive potential equity shares.
19. Rate Regulated Activities
Expenses/income recognized in the Statement of Profit & Loss to the extent recoverable from
or payable to the beneficiaries in subsequent periods as per Rajasthan Electricity Regulatory
Commission (the RERC) Tariff Regulations are recognised as Regulatory asset /liability.
Regulatory asset/liability is adjusted from the year in which the same becomes recoverable
from or payable to beneficiaries.
20. Cash flow statement
Cash flow statement is prepared in accordance with the indirect method prescribed in Ind AS
7 ‘Statement of Cash Flows’.
21. Investment in Subsidiary and Joint Venture
Investment in Subsidiary and Joint Venture are accounted at cost.
22. Financial instruments
i. Financial assets
All financial assets are recognized initially at fair value plus, in the case of financial
assets not recorded at fair value through profit or loss, transaction costs that are
attributable to the acquisition or issue of the financial asset.
Subsequently, a financial asset is measured at Amortised Cost or fair value through
other comprehensive income or fair value through profit and loss depending upon the
fulfilment of criteria. Subvention Receivable has been measured at fair value through
profit and loss.
Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is
included in finance income in the profit or loss. FVTOCI category Financial assets are
measured initially as well as at each reporting date at fair value. Fair value movements
are recognized in the OCI. Instruments included within the FVTPL category are
measured at fair value with all changes recognized in the profit and loss.
Expected credit losses are recognized for all financial assets subsequent to initial
recognition other than financials assets in FVTPL category. The expected credit losses
are measured as lifetime expected credit losses if the credit risk on financial asset
increases significantly since its initial recognition.
A financial asset is derecognised when the contractual rights to the cash flows from the
financial asset expire, or it transfers the rights to receive the contractual cash flows in a
transaction in which substantially all of the risks and rewards of ownership of the
financial asset are transferred.
ii. Financial Liabilities
All financial liabilities are recognized initially at fair value and, in the case of borrowings
and payables, net of directly attributable transaction costs. The Company’s financial
liabilities include trade and other payables and borrowings.
After initial measurement, such financial liabilities are subsequently measured at
amortized cost using the EIR method. Transaction costs (incremental costs) are
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
81
included in calculation of amortisation cost using effective interest method. The EIR
amortization is included in finance costs in the statement of profit or loss or capitalised
as borrowing cost in respect of a qualifying asset. This category generally applies to
borrowings, deposits and other contractual liabilities.
Financial liabilities designated upon initial recognition at fair value through profit or loss
are designated at the initial date of recognition, and only if the criteria in Ind AS 109 are
satisfied. All other changes in fair value of such liability are recognized in the statement
of profit or loss. The Company has not designated any financial liability as at fair value
through profit and loss.
C. Use of estimates and management judgments
The preparation of financial statements requires the use of accounting estimates which, by
definition, will seldom equal the actual results. Management also needs to exercise judgment in
applying the group’s accounting policies.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimates are revised and in any future periods
affected.
1. Useful life of property, plant and equipment
Useful life of assets of generation of electricity business is determined by RERC Tariff
Regulation in accordance with Schedule II of Companies Act, 2013.
The estimated useful life of other item of property, plant and equipment is based on a
number of factors including the effects of obsolescence, demand, competition and other
economic factors (such as the stability of the industry and known technological advances)
and the level of maintenance expenditures required to obtain the expected future cash flows
from the asset.
2. Post-employment benefit plans
Employee benefit obligations are measured on the basis of actuarial assumptions which
include mortality and withdrawal rates as well as assumptions concerning future
developments in discount rates, the rate of salary increases and the inflation rate. The
Company considers that the assumptions used to measure its obligations are appropriate
and documented.
3. Provisions and Contingencies
The assessments undertaken in recognizing provisions and contingencies have been made in
accordance with Ind AS 37, ‘Provisions, Contingent Liabilities and Contingent Assets’. The
evaluation of the likelihood of the contingent events has required best judgment by
management regarding the probability of exposure to potential loss.
4. Materiality
Whether individual items or groups of items need to be disclosed separately in the primary
financial statements or in the notes depends on their materiality. Materiality is judged by
reference to the size and nature of the item. The deciding factor is whether the omission or
misstatement could, individually or collectively, influence the economic decisions that users
make on the basis of the financial statements. In particular circumstances either the nature
or the amount of an item or an aggregate of items could be the determining factor. Further, an
entity may also be required to present separately immaterial items, when required by law.
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
82
Note
No. 1-:
N
on
-Curr
en
t A
ssets
- P
ropert
y, Pla
nt
an
d E
quip
men
t
(in
Lakh
s )
`
Standalone
Net
Blo
ck
Bal
ance
as
at
01.0
4.20
18
Add
itio
ns/
(Dis
posa
ls)
Bal
ance
as
at
31.0
3.20
19
Bal
ance
as
at
01.0
4.20
18
Add
itio
ns/
(Ded
ucti
ons)
Bal
ance
as
at
31.0
3.20
19
Bal
ance
as
at
31.0
3.20
19
Pro
pert
y, P
lan
t an
d E
quip
men
t
1. L
and
& R
ight
s10
.1X
X12
.100
Free
hol
d12
,179
.77
2,06
4.23
14,2
44.0
0
-
-
-
14,2
44.0
0
Leas
e ho
ld1,
337.
33
0.14
1,33
7.46
69.8
4
20.1
4
89.9
8
1,24
7.49
2. B
uild
ings
10.2
XX
2,47
,015
.56
87,8
58.0
9
3,34
,873
.64
12.2
0026
,473
.18
10,9
34.0
2
37,4
07.2
0
2,97
,466
.45
3. H
ydra
ulic
wor
ks10
.3X
X1,
63,9
67.7
8
36,3
68.9
6
2,00
,336
.74
12.3
0034
,856
.57
10,2
70.7
0
45,1
27.2
7
1,55
,209
.48
4. O
ther
Civ
il W
orks
10.4
XX
52,1
76.6
8
2,10
4.12
54,2
80.8
0
12.4
005,
592.
67
1,91
6.75
7,50
9.42
46,7
71.3
9
5. P
lant
& M
achi
nery
10.5
XX
15,1
9,76
2.48
3,57
,178
.26
18,7
6,94
0.73
12.5
002,
62,8
20.9
2
1,04
,429
.73
3,67
,250
.64
15,0
9,69
0.09
6. L
ines
& C
able
Net
Wor
k10
.6X
X3,
882.
06
0.35
3,88
2.41
12.6
0051
7.36
246.
97
764.
33
3,11
8.08
7. V
ehic
les
10.7
XX
133.
58
29.7
1
163.
29
12.7
0026
.21
6.45
32.6
6
130.
63
8. F
urn
itu
re &
Fix
ture
s10
.8X
X98
5.45
24.0
7
1,00
9.52
12.8
0019
1.23
51.8
5
243.
08
766.
44
9. O
ffice
Equ
ipm
ents
10.9
XX
603.
24
17.7
1
620.
95
12.9
0030
8.80
110.
70
419.
51
201.
45
Tot
al (i
)20
,02,
043.
92
4,85
,645
.64
24,8
7,68
9.56
3,30
,856
.77
1,27
,987
.31
4,58
,844
.08
20,2
8,84
5.48
10. C
apit
al S
pare
s A
t G
ener
atin
g St
atio
ns (i
i)11
.300
17,8
73.6
6
19,1
31.7
1
37,0
05.3
7
12.9
601,
099.
86
3,15
5.12
4,25
4.97
32,7
50.4
0
11.
O&
M S
pare
s (ii
i) 11
.600
33,1
32.5
5
(8,5
05.2
9)
24,6
27.2
6
12.9
607,
986.
06
819.
51
8,80
5.57
15,8
21.6
9
(6,2
04.1
0)
-
(6,2
04.1
0)
46.9
64-
-
-
(6,2
04.1
0)
Gra
nd
Tot
al (i
+ii+
iii+
iv)
20,4
6,84
6.03
4,96
,272
.06
25,4
3,11
8.09
3,39
,942
.69
1,31
,961
.94
4,71
,904
.63
20,7
1,21
3.46
Acc
umul
ated
Dep
reci
atio
n
12.
Pro
v. F
or lo
ss-P
PE p
endi
ng in
vstg
. (iv
)
(Ref
er N
ote
No.
1.3
) Par
ticu
lars
C
ode
Gro
ss B
lock
Cod
e
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
83
Standalone
(in
Lakh
s )
` Net
Blo
ck
Bal
ance
as
at
01.0
4.20
17
Add
itio
ns/
(Dis
posa
ls)
Bal
ance
as
at
31.0
3.20
18
Bal
ance
as
at
01.0
4.20
17
Add
itio
ns/
(Ded
ucti
ons)
Bal
ance
as
at
31.0
3.20
18
Bal
ance
as
at
31.0
3.20
18
Pro
pert
y, P
lant
and
Equ
ipm
ent
1. L
and
& R
ight
s10
.1X
X12
.100
Free
hol
d12
,175
.67
4.
09
12
,179
.77
-
-
-
12
,179
.77
Leas
e ho
ld1,
337.
15
0.
17
1,
337.
33
49
.70
20.1
4
69.8
4
1,
267.
49
-
2.
Bui
ldin
gs10
.2X
X2,
45,5
23.2
3
1,49
2.33
2,47
,015
.56
12.2
0017
,369
.77
9,10
3.40
26,4
73.1
8
2,20
,542
.38
-
3.
Hyd
raul
ic w
orks
10.3
XX
1,61
,310
.41
2,65
7.37
1,63
,967
.78
12.3
0025
,672
.61
9,18
3.95
34,8
56.5
7
1,29
,111
.21
4. O
ther
Civ
il W
orks
10.4
XX
51,9
25.8
9
250.
80
52,1
76.6
8
12.4
003,
738.
28
1,85
4.39
5,59
2.67
46,5
84.0
1
5. P
lant
& M
achi
nery
10.5
XX
15,1
1,50
4.09
8,25
8.38
15,1
9,76
2.48
12.5
001,
70,2
79.6
6
92,5
41.2
6
2,62
,820
.92
12,5
6,94
1.56
6. L
ines
& C
able
Net
Wor
k10
.6X
X3,
870.
11
11.9
5
3,88
2.06
12.6
0027
1.24
246.
12
517.
36
3,36
4.70
7. V
ehic
les
10.7
XX
118.
77
14.8
1
133.
58
12.7
0017
.06
9.15
26.2
1
107.
37
8. F
urni
ture
& F
ixtu
res
10.8
XX
958.
17
27.2
8
985.
45
12.8
0012
3.16
68.0
7
191.
23
794.
22
9. O
ffice
Equ
ipm
ents
10.9
XX
594.
20
9.04
603.
24
12.9
0019
7.35
111.
46
308.
80
294.
44
Tota
l (i)
19,8
9,31
7.70
12,7
26.2
2
20,0
2,04
3.92
2,17
,718
.83
1,13
,137
.95
3,30
,856
.77
16,7
1,18
7.15
10. C
apita
l Spa
res
At G
ener
atin
g St
atio
ns (i
i)11
.300
17,3
21.8
5
551.
81
17,8
73.6
6
12.9
6072
0.71
379.
15
1,09
9.86
16,7
73.8
0
11.
O&
M S
pare
s (ii
i) 11
.600
27,3
89.8
3
5,74
2.72
33,1
32.5
5
12.9
604,
044.
69
3,94
1.36
7,98
6.06
25,1
46.4
9
(6,2
04.1
0)
(6,2
04.1
0)
46.9
64-
-
(6,2
04.1
0)
Gra
nd T
otal
(i+i
i+ii
i+iv
)20
,27,
825.
29
19,0
20.7
4
20,4
6,84
6.03
2,22
,484
.23
1,17
,458
.45
3,39
,942
.69
17,0
6,90
3.34
Acc
umul
ated
Dep
reci
atio
n
12.
Pro
v. F
or lo
ss-P
PE p
endi
ng in
vstg
. (iv
)
(Ref
er N
ote
No.
1.3
)
Par
ticu
lars
C
ode
Gro
ss B
lock
Cod
e
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
84
1.1 The expenditure incurred on account of Major Inspection (M.I.) and Hot Gas Path Inspection (HGPI) of our Gas Power Plants (which is normally carried out at the completion of 48,000/24000 hours of operations which approximately works out to six/three years) are treated as Property Plant and Equipment to be depreciated, over the period of six/three years, based on the future economic benefits envisaged by the company as above.
1.2. Useful life for O&M Spares capitalised in asset code 11.600 ranges from 3 to 25 years.
1.3 The Property Plant and Equipment of the company includes net assets amounting ̀ 6,204.10 lakh appearing as on 01-04-2008, accounted for in the books of HQ. These assets were transferred by the State Govt. under the transfer scheme. Details of these assets like situation and location are not available due to which provision for the above amount has already been made in the books of accounts in the year 2008-09. Final adjustment of these assets is under process.
1.4. Land and rights (free hold/lease hold) have been acquired pursuant to Power Sector Reform Scheme as such the title deeds pertaining to some assets in the name of erstwhile RSEB have been continued.
1.5. The title of the following assets does not vest with RVUN.
Particulars Location 2018-19 2017-18
Road Leading to STPS STPS, Suratgarh 58.43 61.70
Cement Concrete Road CTPP, Chabbra 3,559.07 3,730.15
Road overbridge at KTPS KTPS, Kota 1,957.00 2,038.00
Dam & Anicut CTPP, Chabbra 4,471.65 4,852.64
Gravity Dam KaTPP, Kalisindh 87,165.67 -
1.6 The company has taken certain assets on lease, the original cost of which is `4,136.92 Lakh Lease rental on such assets are paid as per terms of lease agreements with lessors i.e. Banks.
1.7. The land on which the Rest House and Residential Colony are developed at DCCPP in city stands owned by RRVPNL.
1.8. Out of total land acquired for DCCPP, land measuring 200.01 Bigha is yet to be allotted in favour of the Company.
1.9. Refer Note No. 16 for information on property, plant and equipment pledged as security by the company.
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
85
Note No. 2-: Non Current Assets - Capital Work in Progress
Particulars AccountCode
2018-19 2017-18
Capital Work In Progress 14XXX 13,22,250.49 16,21,287.29
Capital Inventory and Stores:
Stock of Material at Const.Stores 22.201-22.680 153.09 271.90
Less: Prov. for O&M & Capital Stores 22.910 79.33 79.33
Less: CWIP - Expense Adjustment 15.230 25.95 86.90
TOTAL 13,22,298.30 16,21,392.95
( in Lakhs )`
( in Lakhs )` Movement of CWIP
Particulars
Opening Balance 16,21,392.95 13,65,266.85
Add:Addition during the year 2,03,546.84 2,69,348.74
Less: CWIP expenses capitalised during the year 5,02,641.49 13,222.63
Closing Balance 13,22,298.30 16,21,392.95
Standalone
As atst31 March, 2018
As atst31 March, 2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
86
Note
No. 3-:
N
on
Curr
en
t A
ssets
- I
nta
ngib
le A
ssets
(
in L
akh
s )
` (in
Lakh
s )
`
Standalone
Net
Bloc
k
Bala
nce a
s on
1.04.2
018
Add
ition
s/ (D
ispos
als)
Bala
nce a
s at
31.03
.2019
Bala
nce a
s on
1.04.2
018
Add
ition
s/
(Ded
uctio
ns)
Ded
uctio
ns
Bala
nce a
s at
31.03
.2019
Bala
nce a
s at
31.03
.2019
Inta
ngibl
e ass
ets
1. M
ining
Coa
l Bloc
k Upfr
ont F
ees
18.30
015
,494.5
71,1
26.40
16,62
0.97
628.1
1
46
8.94
-1,0
97.04
15,52
3.93
Tota
l15
,494.5
71,1
26.40
16,62
0.97
628.1
1
468.9
4
-1,0
97.04
15,52
3.93
Net
Bloc
k
Bala
nce a
s on
1.04.2
017
Add
ition
s/ (D
ispos
als)
Bala
nce a
s at
31.03
.2018
Bala
nce a
s on
1.04.2
017
Add
ition
s/
(Ded
uctio
ns)
Ded
uctio
ns
Bala
nce a
s at
31.03
.2018
Bala
nce a
s at
31.03
.2018
Inta
ngibl
e ass
ets
1. M
ining
Coa
l Bloc
k Upfr
ont F
ees
18.30
015
,494.5
7-
15
,494.5
7
406.5
2
22
1.59
-62
8.11
14,86
6.46
Tota
l15
,494.5
7-
15,49
4.57
406.5
2
221.5
9
-62
8.11
14,86
6.46
Parti
cular
s C
ode
Gro
ss B
lock
Acc
umula
ted A
morti
satio
n
Gro
ss B
lock
Acc
umula
ted A
morti
satio
n
Parti
cular
s C
ode
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
87
Note No. 4-: Non- Current Financial Assets - Investments
ParticularsAccount
Code
Number Of Shares Current year/(Previous
year)
Investment measured at Cost (unquoted) 20.270
In Equity Shares of Subsidiary Companies
Dholpur Gas Power Limited 50000 5.00 5.00
(50000)
Giral Lignite Power Limited 370050000 37,005.00 37,005.00
(370050000)
Less: Provision for Impairment (37,005.00) (18,505.00)
- 18,500.00
Chhabra Power Limited 50000 5.00 5.00
(50000)
In Equity Shares of Joint Venture Companies
Parsa Kente Collieries Ltd 130000 0.00 0.00
(130000)
Rajasthan Collieries Ltd. 130000 0.00 0.00
(130000)
TOTAL 10.00 18,510.00
( in Lakhs )`
4.1 Disclosure of Investment towards Cost/M.V.
a) Aggregate amount of Quoted Investments - -
b) Aggregate amount of Unquoted Investments (At Cost less Impairment) 10.00 18,510.00
4.2 The Company had entered (3 August 2007) into a Joint Venture (J.V.) Agreement with M/s
Adani Enterprises Ltd. (AEL) under which a separate Company 'Parsa Kente Collieries
Limited' (PKCL) (CIN: U10200RJ2007PLC025173) was formed in which ratio of equity capital
of RVUN Ltd. and AEL was fixed at 26:74 respectively. Accordingly, 1,30,000 equity shares of
PKCL were issued (March 2008) to the Company, free of cost, representing 26 percent voting
rights in PKCL. The company had recorded these shares in the form of investment at notional
value of Rs. 1/- in the books of accounts in the Financial Year 2009-10. Further under JV
Agreement, Company engaged 'Parsa Kente Collieries Limited' (PKCL) in the year 2008 for
prospecting, exploration and mining of coal over RVUN's coal mines located in the State of
Chhattisgarh (Parsa East & Kanta Basan Coal Blocks) for a period of 30 years from
commencement of supply of coal from the coal block to RVUN's power plants. Further, the
Coal Mining and Delivery Agreement (CMDA) was also been executed on 16.07.2008 between
RVUN and PKCL to undertake the work of mining and arranging for transport and delivery of
coal from 'Parsa East & Kanta Basan' coal blocks located in Chhattisgarh. Mining from this
coal block has been started w.e.f. 25.03.2013. The Peak rated capacity of 15 MTPA has been
achieved in FY 2018-19.
Standalone
As at31.03.2019
As at31.03.2019
As at31.03.2018
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
88
4.3
Enterprises Ltd. (AEL) under which a separate company 'Rajasthan Collieries Ltd.' (RCL)
(CIN: U10100RJ2012PLC038382) was incorporated on dated 27.03.2012 in which ratio of
equity capital of RVUN Ltd. and AEL is fixed at 26:74 respectively. Accordingly, 1,30,000
equity shares of RCL were issued on dt. 01.10.2013 to the company, free of cost, representing
26 percent voting right in RCL. The company has acknowledged these shares in the form of
investment at notional value of Rs. 1/- in the books of accounts in the year 2013-14. Further,
the Coal Mining and Delivery Agreement (CMDA) has also been executed on dated
03.10.2013 between RVUN and RCL to undertake the work of mining and arranging for
transport and delivery of coal from Kente Ext. coal block located in Chhattisgarh to RVUN's
power plants.
Further, Parsa coal block located in Chhattisgarh was also allocated to RVUN on 24.03.2015.
Subsequently, another Coal Mining and Delivery Agreement (CMDA) to undertake the work of
mining and arranging for transport and delivery of coal from Parsa coal block to RVUN's
power plants has also been executed on 24.05.2016 between RVUN and RCL. The work
relating to mining from these coal blocks has not been started so far.
4.4 The Board of Directors of RVUNL in its 149th and 150th meeting held on 8th October,2008
and 7th November, 2008, respectively accorded approval to transfer the business of its 1x125
MW Unit-1 (Stage-I) of Giral Lignite Thermal Power Project situated at Giral in District
Barmer, Rajasthan to Giral Lignite Power Limited (GLPL), a wholly owned subsidiary of the
Company on a ‘going concern basis’ along with all its assets & liabilities on book value, at
such consideration, being not lower than the net book value.
4.5 Pursuant to the decision of the board of Director of the company, in its 241st meeting held on
20.10.2014 and after obtaining the consent of the lender(s) and exemption from payment of
stamp duty to the state government, the "effective date of transfer" was fixed to be 01-Apr-
2015 for transfer of the 1X125 MW Unit-2 (Stage-II) of Giral Lignite Thermal Power Station
situated at Giral in District Barmer, Rajasthan to Giral Lignite Power Limited (GLPL), a wholly
owned subsidiary of the company on a "going concern basis" along with all its assets and
liabilities on book value.
4.6 The company has Investment of ̀ 37,005.00 Lakhs (` 37,005.00 Lakhs) in its subsidiary GLPL
whose net worth as per its latest audited financial statements has been fully eroded.
Considering these facts, a provision for impairement loss in the value of investment
amounting to ` 37,005.00 Lakhs (18,500.00 lacs in FY 2018-19 and 18,505.00 lacs in FY
2017-18) in respect of equity capital contribution has been made.
The company had entered (9 December, 2011) into a joint venture Agreement with M/s Adani
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
89
Note No. 5-: Non Current - Financial Assets (Others)
ParticularsAccount
Code
FDR with Scheduled Banks (Maturing beyond 12 months)
20.280 154.48 -
Subvention Receivable From State Govt. 28.624 12,075.11 13,973.57
Less:- Current Maturity 1,898.46 1,898.46
TOTAL 10,331.13 12,075.11
5.1 FDR with Scheduled Banks includes restricted Bank Balance of ` 148.07 Lakhs (P.Y ` 'Nil' Lakhs). These restrictions are primarily on account of cash and bank balances held as margin money deposits against bank guarantee and Letter of Credit issued.
Note No. 6-: Deferred Tax Assets
Deferred tax assets pursuant to Ind AS-12 “ Income Taxes” has not been recognised as there is no virtual certainty supported by convincing evidence that there shall be any future tax liability.
( in Lakhs )`
Note No. 7-: Non-Current Assets -Others
ParticularsAccount
Code
Others:
Preliminary Exp. not yet written-off 17.225 45.15 45.15
Exp.on survey /Projects not yet sanctioned 17.300 173.17 132.05
Prepaid Expenditure 28.820 44.50 116.68
Unsecured & Considered Good
Advance to Suppliers & Contractors for Capital Goods(Refer Note No. 7.2) 25.XXX
- considered Good 65,660.61 69,785.70
- considered doubtful 1,364.81 1,364.81
Less: Provision for doubtful advances 25.910 1,364.81 1,364.81
Other Deposits 28.919 176.62 176.62
Security Deposit with Lessor 28.890 155.84 155.84
TOTAL 66,255.89 70,412.03
7.1 The ownership of leased assets of the following companies have not been transferred in the favour of the company after expiry of lease agreements due to pending litigation in court or in absence of power of attorney. The security deposit equivalent to residual value of the lease assets have already been deposited with lessors except M/s ICICI Ltd. for which payment will be made. The details are as under:-
( in Lakhs )`
( in Lakhs )`
S. No. Name of Lessor Lease Value Residual Value
1 ICICI Ltd 8,400.00 84.00
2 Indo Nissan Oxo Chemical Ltd 623.34 155.54
Total 9,023.34 239.54
Standalone
As atst31 March,
8201
As atst31 March, 2019
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
90
7.2 The Board of Directors of the company in its 154th meeting held on 05-03-2009 decided to make advance to BHEL ̀ 5,982. 58 Lakhs, the equivalent amount of WCT deducted from their bills subject to the condition that the BHEL shall promptly refund entire amount including interest, if any, to the RVUN within seven days from the date of receipt of the same by BHEL from the Commercial Taxes Department (CTD). Till such time the same has been shown as Advance receivable from BHEL. The CTD had denied the claim, hence, the company had filed appeal before the Tax Board Rajasthan against the decision of CTD. M/s BHEL had also filed case before tax board in respect of the same. The case has been decided by Rajasthan Tax Board, Ajmer in favour of RVUN. However instead of refunding the amount the CTD, Raj. has filed the case against the decision of Rajasthan Tax Board before Hon'able High Court Rajasthan, Jaipur. Decision of the same is awaited.
Note No. 8-: InventoriesCURRENT ASSETS
ParticularsAccount
Code
Coal Stock 21.101 & 21.301 78,053.43 26,117.38
Oil Stock 21.105 6,054.33 4,038.42
Coal in Transit 21.121 5,885.90 5,182.58
Coal Stock in Transit Lying with Third Party 21.122 4,702.16 986.46
Stores & Spares 22.221-22.690 13,593.07 13,933.24
Stock Shortage Pending Investigation 22.710-22.830 329.25 329.25
Less:Prov. For Shortage 46.965 329.25 329.25
TOTAL 1,08,288.89 50,258.08
8.1 No inventory is carried at fair value less cost to sell. Inventory is carried at cost.
8.2 Inventory of ` 9,18,813.95 Lakhs (P.Y ` 7,27,311.53 Lakhs) have been recognized as expense. The details are as under:
( in Lakhs )`
Particulars 2018-19 2017-18
Fuel 9,04,693.51 7,15,612.76
Stores & Spares 14,120.44 11,698.77
Total 9,18,813.95 7,27,311.53
8.3
theft occured at TG store KaTPP Jhalawar . In this connection an FIR had been lodged with
the police. Final accounting treatment shall only be possible and be carried out after
finalisation of investigation.
A provision amounting to ` 305.69 Lakhs has been made in the FY 2016-17 on account of
Note No. 9-: Financial Assets - Trade Receivables
ParticularsAccount
Code
Unsecured, considered Good 23.802-23.804 18,40,955.48 11,24,059.04
TOTAL 18,40,955.48 11,24,059.04
( in Lakhs )`
Standalone
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
91
9.1 Details of Trade Receivables
ParticularsAccount
Code
Receivables against sale of power-JVVNL 23.802 6,85,042.93 4,61,420.90
Receivables against sale of power-AVVNL 23.803 4,98,535.09 3,12,684.59
Receivables against sale of power-JD.VVNL 23.804 6,57,377.46 3,49,953.56
TOTAL 18,40,955.48 11,24,059.04
9.2 Trade Receivable have been reconciled up to the year 2017-18 and transactions of the current year are in the process of reconciliation.
( in Lakhs )`
Note No. 10-:Current Financial Assets - Cash and Cash equivalents
ParticularsAccount
Code
Balances with banks
Current Accounts 24.301-24.4xx 3,166.05 3,503.34
SBI CC Account 50.110 - 0.68
With Public Deposit Accounts 24.452 0.30 0.30
Cash In hand 24.110 3.54 3.92
Others
Remittances in Transit 24.601-24.652 22.20 28.81
Cash Imprest with Staff 24.210 & 24.220 0.29 0.37
FDR with Scheduled Banks (Maturity upto three months) 20.280 13,684.71 6,319.43
Current Account - Fly Ash Fund 24.422 22.28 49.41
TOTAL 16,899.38 9,906.27
10.1 Cash and Cash equivalents includes restricted Bank Balance of ` 13,467.92 Lakhs (P.Y ` 6035.28 Lakhs). These restrictions are primarily on account of cash and bank balances held as margin money deposits against bank guarantee and Letter of Credit issued.
( in Lakhs )`
Note No. 10A-: Current Financial Assets - Other Bank Balances
ParticularsAccount
Code
FDR with Scheduled Banks(Maturing between three to twelve months)*
FDR With Bank - Fly Ash Fund(Maturing between three to twelve months) 20.240 - 136.80
Escrow Account with UBI Kolkata 24.408 4,644.66 3,937.56
TOTAL 9,193.32 5,720.91
20.280 4,548.66 1,646.55
( in Lakhs )`
*Other Bank Balances as at 31.03.2019 includes restricted Bank Balance of 4,525.56 Lakhs (P.Y 770.69 Lakhs). These restrictions are primarily on account of cash and bank balances held as margin money deposits against bank guarantee and Letter of Credit issued and on account of Labour Welfare Cess.
` `
Standalone
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2019
As at31.03.2018
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
92
Note No. 11-:Current Financial Assets: Loan
Note No. 12-: Current Financial Assets - Others
Particulars
Particulars
AccountCode
AccountCode
Un-secured & Considered good
Loans & Advances to Employees 27.100-27.209, 27.500
- considered good 20.81 23.45
- considered doubtful 0.03 0.14
Less: Provision for doubtful advances 27.910 0.03 0.14
20.81 23.45
Deferred Sale Consideration (Lease) (Refer Note No. 11.1) 28.101 329.63 329.63
TOTAL 350.44 353.08
11.1 No credit is taken in the accounts for interest payable on defaulted instalment’s of sale consideration by lease finance companies, due to specific provision in their agreements. Consequential action has been taken by RVUN by way of with-holding payments of lease rentals on occurrence of defaults.
Others:
(Considered good, unless otherwise stated)
Income Accrued & Due 28.290 2.79 1,669.02
Income Accrued but not due 28.31X-28.363
- considered Good - (0.47)
- considered Doubtful 3.25 4.12
Less: Provision for doubtful debts 28.900 3.25 4.12
Amount Recoverable from Employees 28.401 1.00 0.96
Fuel Related Receivables & Claims 28.511-28.514, 23,008.20 37,259.8728.554
Subvention Receivable From State Govt. 28.624 1,898.46 1,898.46
Income from Investment 27.421 0.04 0.04
Receivables from Subsidiaries Companies(GIRAL LPL) 28.931 1,50,746.52 1,20,276.99
Less:Provision for Impairment (Refer Note No. 12.1) 28.910 92,784.48 65,522.01
Other Receivables 28.810,28.811, 28.890
- considered Good 36,583.04 7,718.01
- considered Doubtful 381.70 380.83
Less: Provision for doubtful advances 28.910 381.70 380.83
Unbilled Revenue 23.805 1,54,497.24 1,37,379.35
FBT Receivable 27.411 11.88 11.88
TOTAL 2,73,964.68 2,40,692.10
( in Lakhs )`
( in Lakhs )`
Standalone
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
93
12.1 In view of accounting policy no. 22(i), expected credit losses amounting 27,262.46 (P.Y
23,129.45 Lakhs )have been recognised against the amount receivable fron Giral Lignite Power
Ltd.
12.2 Other receivable includes an excess amount of ̀ 35.72 Lakhs had been paid by STPS (Const.)
unit to Govt. for acquisition of Land. This amount was to be recovered from the payment to be
made by Transmission Company to Govt.
12.3 Lenders for GLPL i.e PFC is agreed in principle for transfer of their loan to GLPL. However
tripartite agreement is still to be executed. It has also been agreed between RVUN and GLPL
that RVUN shall meet out the financial/contractual commitments (including debt servicing)
regarding loans availed from the financial institutions. Expenditure, if any, incurred by RVUN
in this regard shall be reimbursed by GLPL
` `
Note No. 13-: Current Assets - Others
ParticularsAccount
Code
Others:
Inter Unit Accounts 30.X-38.X - -
Prepaid Expenses 28.820 2,790.34 1,269.43
Advances for Fuel Supply 26.801-26.805 37,815.04 23,150.86
Advances for O&M Supplies 26.1XX-26.7XX
-considered good 13,117.89 14,998.40
-considered doubtful 474.07 455.29
Less: Provision for doubtful advances 26.910 474.07 455.29
26.XXX 50,932.93 38,149.26
Deposits 28.914-28.919 957.53 958.16
Loans & Advances to Other Parties 27.801-27.805 9.35 7.48
Other Claims 28.724-28.790 0.18 0.18
Receivable from Gratuity Fund 28.850 957.04 1,371.12
GST Receivable 27.415 - 27.417 3,669.64 -
Income tax Receivable 28.311 117.62 34.59
TOTAL 59,434.62 41,790.21
13.1 During the year 2006-07 the Mining Department recovered an amount of ` 7.60 Lakhs by seizing our Bank Account at DCCPP, Dholpur, against penalty of Royalty not deposited. This royalty amount was ̀ 0.76 Lakhs against which ten times penalty was recovered. The liability to pay the royalty lied with the contractor M/s. D.K.Sharma. The matter is still under correspondence with the department for getting the refund of the ceased amount. The same is booked under accounting code 28.919.
( in Lakhs )`
Standalone
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
94
Note No.14-: Share Capital
ParticularsAccount
Code
Authorised Share Capital 54.600
Equity Shares of `10/- each (in No.)* 11,00,00,00,000 11,00,00,00,000
Equity Shares of `10/- each (in Rs. In Lakhs)* 11,00,000.00 11,00,000.00
Issued, Subscribed and Fully Paid Up
Equity Shares of `10/- fully paid up (in No.) 10,06,79,50,000 9,67,54,20,000
Equity Shares of `10/- fully paid up (in Rs.in Lakhs) 10,06,795.00 9,67,542.00
TOTAL 10,06,795.00 9,67,542.00
* Inadvertently, as on 31.03.2018 the Authorised Share Capital was shown as 10,00,00,00,000 equity shares of Rs. 10/- each amounting to Rs 10,00,000 Lakhs instead of 11,00,00,00,000 equity shares of Rs. 10/- each amounting to Rs 11,00,000 Lakhs.The increase took place w.e.f. 22 December, 2017. The same has been corrected.
14.1 The company has only one class of shares referred to as equity shares having par value of ̀ 10/- per share. The holders of equity shares are entitled to voting rights proportionate to their share holding at the meetings of shareholders and are entitled to receive dividend as and when declared by the company.
14.2 In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after the distribution of all preferential amounts.
( in Lakhs )`
14.3 Reconciliation of the number of Equity Shares
Particulars
2018-19
No. Of Shares
2017-18
At the beginning of the year 9,67,54,20,000 9,35,88,20,000
Add: Issued during the year 39,25,30,000 31,66,00,000
At the end of the year 10,06,79,50,000 9,67,54,20,000
14.4 The Company is a Government Company with 100% Share holding by the Hon’ble Governor of Rajasthan & its nominees. All shares are issued at par value ` 10/- each and are general equity shares having equal rights for dividend and vote.
Standalone
II. NOTES ON FINANCIAL STATEMENTS
SHAREHOLDERS' FUNDS
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
95
Note No. 15-: Other Equity
ParticularsAccount
Code
a) Capital Reserve 56.200
Opening Balance # #
Add:Addition during the year - -
Closing Balance # #
b) Retained Earning 58.210
Opening Balance (4,43,158.96) (4,97,886.50)
Add:Profit/(Loss) tranferred during the year 4,878.12 54,727.54
Closing Balance (4,38,280.84) (4,43,158.96)
c) Share application money pending Allotment 54.700
Opening Balance 4,603.00 6,635.00
Add: Received during the year 34,650.00 29,628.00
Less: Issued during the year 39,253.00 31,660.00
Closing Balance - 4,603.00
d) Fly Ash Utilisation Fund 46.930
Opening Balance 20,750.66 11,971.43
Addition to Fly Ash Fund during the year 6,749.80 8,779.22
Closing Balance 27,500.46 20,750.66
TOTAL (4,10,780.38) (4,17,805.30)
# ` 2 as at 31.03.2019 and 31.03.2018
15.1 Retained earnings are the profits of the company earned till date net of appropriations.
15.2 The Company has issued ̀ 4,603.00 Lakhs shares, which were pending for allotment in FY 2017-18, to Hon’ble Governor of Rajasthan at par value of ` Rs.10/- each on 15th May, 2018. There are no shares pending for allotment in the FY 2018-19.
15.3 As per the gazette noti?cation dated 3rd November 2009 issued by Ministry of Environment and Forests (MoEF), Government of India, the amounts collected from sale of ?y ash and ?y ash based products shall be kept in a separate account head and be utilized only for development of infrastructure or facilities, promotion and facilitation activities for use of ?y ash until 100% ?y ash utilization level is achieved. In compliance with the said noti?cation, the company has created a Fly Ash Utilization Fund in its books of accounts to which the entire sale proceeds of ?y ash has been transferred and necessary funds for utilisation of notified activities shall be provided as per requirements.
( in Lakhs )`
Standalone
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
96
Note No. 16-:Non Current Financial Liabilities- Long-Term Borrowings
(i) : Descriptive details for Unsecured Public Bonds
Particulars
Bonds AccountCode
FaceValue
S.NO.
A. Bonds
i) Secured - -
ii) Unsecured 85,000.00 85,000.00
State Government Guaranteed, Redeemable, Non-Convertible Taxable Bonds in the nature of Debenture (Private Placement)
See Description Note (i)
B. Term Loans
i) From Banks
- Secured See Description Note (ii) 50,000.00 -
- Unsecured See Description Note (iii) 4,32,688.69 4,34,166.33
ii) From Others
- Secured See Description Note (iv) 24,65,651.54 21,64,067.05
- Unsecured See Description Note iv) 9,71,845.63 8,34,156.48
TOTAL 40,05,185.86 35,17,389.87
(i) 9.00% Redeemable Bonds 2014-15 (Kalisindh Unit - II)*(30%, 30% and 40% redeemable at par at the end of 10th, 11th and 12th year respectively from deemed date of allotment i.e. 24.12.2014.)
(ii) 8.74% Redeemable Bonds 2014-15 52.100 10,00,000 30,043.10 30,043.10(Kalisindh Unit - II)*
(30%, 30% and 40% redeemable at par at the end of 10th, 11th and 12th year respectively from deemed date of allotment i.e. 26.03.2015.)
86,372.14 86,345.02
Less: Current Maturities (Carried to Note
No.21)
9.00% Redeemable Bonds 2014-15 52.100 10,00,000 - -
8.74% Redeemable Bonds 2014-15 52.100 10,00,000 - -
Interest Accured but not due 1,372.14 1,345.02
1,372.14 1,345.02
Grand Total 85,000.00 85,000.00
52.100 10,00,000 56,329.04 56,301.92
( in Lakhs )`
( in Lakhs )`
Standalone
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
* Secured by State Government Guarantee
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
97
(iii) : Descriptive details of Term Loan from Banks - Unsecured Borrowings
(ii) : Descriptive details of Term Loan from Banks - Secured Borrowings
TERM LOAN FROM
TERM LOAN FROM
AccountCode
AccountCode
S.NO.
S.NO.
(i) Allahabad Bank 50.830
a. Term Loan - I *** 50,000.54 2,500.00
(Repayable in 11 quarterly installment of ` 4,166.00 Lakhs and 1 quarterly installment of ` 4,174.00 lakhsupto 31.03.23)
(ii) Indian Overseas bank 50.990
a. Term Loan - I *** 33,333.33 50,000.00
(Repayable in 1 half yearly installments of `16,666.67 Lakhs and 1 half yearly installments of `16,666.66 Lakhs upto 31.03.2020)
b. Term Loan - II *** 50,000.00 50,000.00(Repayable in 2 half yearly installments of `16,667.00 Lakhs and 1 half yearly installments of `16,666.00 Lakhs upto 31.10.2020)
c. Term Loan - III ***(Repayable in 3 half yearly installments of `5000.00 Lakhs 15,000.00 15,000.0030.04.2020)
(iii) Bank of India 50.955
a. Term Loan - I *** 33,333.00 50,000.00(Repayable in 1 half yearly installments of ` 16,667.00 - - Lakhs and 1 half yearly installments of ` 16,666.00 Lakhs upto 18.02.2020)
(i) Allahabad Bank
a. Term Loan - II ** 50,000.00 - (Repayable in 11 quarterly installment of `4,166.00 Lakhs and 1 quarterly installment of ` 4,174.00 Lakhs upto 29.01.2024)
50,000 -
Less: Current Maturities (Carried to Note No.21)
Allahabad Bank Term Loan - -
Interest Accured but not due
-
Total 50,000.00 -
** Secured by State Govt. Guarantee & Assignment of Present & Future receivable bills raised against the supply of power made to different distribution companies.
( in Lakhs )`
( in Lakhs )`
Standalone
As at31.03.2019
As at31.03.2019
As at31.03.2018
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
98
TERM LOAN FROM AccountCode
S.NO.
b. Term Loan - II *** 50,000.00 50,000.00(Repayable in 2 half yearly installments of ` 16,667.00 Lakhs and 1 half yearly installments of ` 16,666.00 Lakhs upto 17.05.2020)
c. Term Loan - III *** 1,00,000.00 1,00,000.00(Repayable in 12 quaterly installments of ` 7,693.00 Lakhs and 1 quaterly installments of ` 7,684.00 Lakhs upto 30.06.2022)
d. Term Loan - IV ***(Repayable in 12 quaterly installments of ` 3,846.00 50,000.00 50,000.00Lakhs and 1 quaterly installments of ` 3,848.00 Lakhs upto 09.02.23)
e. Term Loan - V *** 50,000.00 -(Repayable in 2 half yearly installments of ` 16,667.00 Lakhs and 1 halfyearly installment of ` 16,666.00 Lakhs upto 21.08.21)
(iv) Syndicate Bank
a. Term Loan - I *** 50.958 50,000.00 50,000.00(Repayable in 5 quarterly installments of ` 10000.00 Lakhs upto 15.01.2021)
b Term Loan - II *** 50,000.00 - (Repayable in 11 quarterly installments of ` 4167.00 Lakhs and 1 installment of ̀ 4163.00 Lakhs upto 29.03.2024)
(v) Andhra Banka. Term Loan - I *** 50,000.00 50,000.00
(Repayable in 13 quaterly installments of ` 3846.15 50.987Lakhs upto 31.12.2022)
(vi) Canara Bank
a. Term Loan - I *** 50.982 30,000.00 - Repayable in 3 half yearly installments of ` 10000.00 Lakhs upto 05.06.2021
Total 6,11,666.88 4,67,500.00 Less: Current Maturities (Carried to Note No.21)
Indian Overseas bank Term Loan-I 50.990 33,333.33 -
Indian Overseas bank Term Loan-II 50.990 16,667.00 16,666.67
Indian Overseas bank Term Loan-III 50.990 10,000.00 -
Bank of India Term Loan-I 50.955 33,333.00 16,667.00
Bank of India Term Loan-II 50.955 33,334.00 -
Bank of India Term Loan-III 50.955 30,772.00 -
Bank of India Term Loan-IV 50.955 3,846.00 -
Syndicate Bank Term Loan-I 50.958 10,000.00 -
Andhra Bank Term Loan -I 50.987 7,692.31 -
Interest Accured but not due 0.54 -
1,78,978.19 33,333.67
TOTAL 4,32,688.69 4,34,166.33
*** Secured by Government Guarantee and Default Escrow
( in Lakhs )`
Standalone
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
99
(i) REC Loan 53.300
a. The sanction amount of Loan is ` 96,176.00 Lakhs. (CTPP - 58,131.82 64,775.45Units III and IV)(Repayable in remaining 35 quarterly installments of ` 1,660.43 Lakhs upto 31.12.2027, Secured against Paripassu charge on Asset and Default Escrow)
b. The sanction amount of Loan is ` 3,34,547.00 Lakhs. 2,64,815.08 2,40,104.23(STPS - Units VII and VIII) (Repayable in 60 quarterly installments of ` 5,575.78 Lakhs upto 31.03.2035, Secured against Paripassu charge on Asset and Default Escrow)
c. The sanction amount of Loan is ` 3,46,769.00 Lakhs . 2,87,831.50 2,42,531.05(CTPP - Units V and VI)(Repayable in 60 quarterly installments of ` 5,579.48 Lakhs upto 31.03.2035, Secured against Paripassu charge on Asset and Default Escrow)
d. Working Capital Loan 50.983 1,50,041.51 - (Repayable in 28 equal quarterly installments upto 30.09.2028)Secured by mortgage.
(Secured by mortgage of land of KTPS)
e. Working Capital Loan 15,000.00 - (Repayable in 18 Monthly installments of ` 833.33 Lakhs upto 30.04.2021, Secured against Hypothecation of uncumbered existing assets & default escrow)
Sub Total (i) 7,75,819.91 5,47,410.74
(ii) PFC Loan 53.550
a. Term Loan - I No. 7301013 - Dholpur 3,272.72 9,818.16(Repayable in remaining 2 quarterly installments of ` 1,600.53 Lakhs upto 15.07.2019, Default Escrow and Hypothecation of Assets)
b. Term Loan - II No. 7301014 - CTPP (Units I & II) 52,588.90 62,150.52(Repayable in remaining 22 quarterly installments of ` 2,338.07 Lakhs upto 15.07.2024, Default Escrow and Hypothecation of Assets)
c. Term Loan - IV No. 7301016 - STPS (Unit VI) 23,514.82 27,604.36(Repayable in remaining 23 quarterly installments of ` 1,000.00 Lakhs upto 15.10.2024, Default Escrow and Hypothecation of Assets)
d. Term Loan - V No. 7301017 - KTPS (Unit VII) 22,345.30 26,601.55(Repayable in remaining 21 quarterly installments of ` 1,040.77 Lakhs upto 15.04.2024, Default Escrow and Hypothecation of Assets)
e. Term Loan - VI No. 7301018 - CTPP (Unit I & II) 37,975.77 44,880.46(Repayable in remaining 22 quarterly installments of ` 1,688.38 Lakhs upto 15.07.2024, Default Escrow and Hypothecation of Assets)
f. Term Loan - VII No. 7301019 - KaTPP (Unit I & II) 5,04,823.10 5,49,696.26(Repayable in remaining 45 quarterly installments of
( in Lakhs )`
(iv) : Descriptive details of Term Loan from others - Secured Borrowings
Standalone
TERM LOAN FROM AccountCode
S.NO.
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
100
10,972.68 Lakhs upto 15.04.2030, Default Escrow and Hypothecation of Assets)
g. Term Loan - VIII No. 7301020 - Chhabra (Unit III & IV) 1,09,848.57 1,19,834.80(Repayable in remaining 44 quarterly installments of ` 2,441.90 Lakhs upto 15.01.2030, Default Escrow and Hypothecation of Assets)
h. Term Loan - IX No. 7301021 - STPS (Unit VI) 13,541.79 15,896.88(Repayable in remaining 23 quarterly installments of ` 575.88 Lakhs upto 15.10.2024, Default Escrow and Hypothecation of Assets)
i. Term Loan - XI No. 7301023 - RGTP (Stg III) 52,168.83 57,021.74(Repayable in remaining 43 quaterly installments of ` 1,186.67 Lakhs upto 15.10.2029, Default Escrow and Hypothecation of Assets)
j. Term Loan - XIII No.7301024-STPS (Units VII and VIII) 4,55,985.02 3,89,167.77The sanction amount of Loan is ` 5,01,785.00 Lakhs.(Repayable in 80 quarterly installments of ` 6,272.31 Lakhs upto 15.07.2040, Default Escrow and Hypothecation of Assets)
k. Term Loan - XIV No. 7301025 - CTPP (Units V and VI) 4,79,749.19 3,88,799.56The sanction amount of Loan is ` 5,20,053.00 Lakhs(Repayable in 80 quarterly installments of ` 6,500.66 Lakhs upto 15.10.2040, Default Escrow and Hypothecation of Assets)
l. Term Loan - XV No. 7304005 - KTPS (Addl. Capitalisation) 26,553.45 25,198.38 The sanction amount of Loan is ` 27,370.00 Lakhs.(Repayable in 60 quarterly installments of ` 456.17 Lakhs upto 15.07.2034, Default Escrow and Hypothecation of Assets)
m. Term Loan - XVI No. 7304006 - STPS (Addl. Capitalisation) 4,981.22 4,728.26 The sanction amount of Loan is ` 11,413.00 Lakhs.(Repayable in 60 quarterly installments of ` 190.22 Lakhs upto 15.01.2034, Default Escrow and Hypothecation of Assets)
n. Term Loan - XVII No. 7324001 (Buyer's Line & Credit) 46,108.21 49,673.37The sanction amount of loan is ` 50,000.00 Lakhs.(Repayable in remaining 55 quarterly installments of ` 864.51 Lakhs upto 15.04.2032, Default Escrow and Hypothecation of Assets)
Sub Total (ii) 18,33,456.88 17,71,072.08
Total (i+ii) 26,09,276.79 23,18,482.82
Less: Current Maturities (Carried to Note No.21)
REC Loans 53.300 10,808.39 18,683.92
PFC Loans 53.550 92,510.76 94,842.76
Interest Accured but not due 40,306.11 40,889.09
1,43,625.26 1,54,415.77
GRAND TOTAL 24,65,651.54 21,64,067.05
`
( in Lakhs )`
Standalone
TERM LOAN FROM AccountCode
S.NO.
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
101
(i) PFC Loan *** 50.600
a. Term Loan -I 7398002 1,86,624.78 1,82,578.04(Repayable in 28 equal quarterly installments upto 15.01.2027
b. Term Loan - II No. 7365001The sanction amount of Loan is ` 2,10,000.00 Lakhs. 2,07,412.15 2,15,312.71(Repayable in remaining 27 quarterly installments of ` 7,500.00 Lakhs upto 15.10.2025)
c. Term Loan - III No. 7371001(Repayable in 20 equal quarterly installments upto 15.10.2025 2,04,466.41 -
Sub Total (i) 5,98,503.34 3,97,890.75
(ii) World Bank Loan (KTPS - Units I to VI) 53.598
a. Cash Loan 5.13 6.93(Repayable in remaining 20 monthly installments of ` 0.17 Lakhs and 10 installments of ` 0.14 Lakhs upto 15.03.2022)
b. PPF Advance 14.30 20.54(Repayable in remaining 10 monthly installments of ` 0.59 Lakhs , 10 monthly installments of ` 0.53 Lakhs, 10 monthly installments of ` 0.24 Lakhs upto 15.03.2022)
Sub Total (ii) 19.43 27.47
(iii) State Govt. Loan (13.75%) (STPS - Units I to V) 54.200 13,807.00 13,807.00 Terms of repayment of such loan shall be decided by the Govt. of Rajasthan
Sub Total (iii) 13,807.00 13,807.00
(iv) REC Loan *** 50.983
a. Loan No. 57-9353 - 3,334.22(This loan has been repaid during the financial year 2018-19)
b. Loan No. 57-10539 3,334.22 23,339.57(Repayable in 2 monthly installments of ` 1666.67 Lakhs upto 31.05.2019)
c. Working Capital Loan 2,11,374.64 2,11,374.64(Repayable in 28 equal quarterly installments upto 31.12.2026)
d. Working Capital Loan 2,10,053.62 2,10,053.22(Repayable in 28 equal quarterly installments upto 31.12.2027)
e. Working Capital Loan( Loan No. 57-10717) 10,836.52 15,004.42(Repayable in 13 monthly installments of ` 833.33 Lakhs upto 30.04.2020)
Sub Total (iv) 4,35,599.01 4,63,106.07
Total (i to iv) 10,47,928.78 8,74,831.29
Less: Current Maturities (Carried to Note No.21)
World Bank Loan 53.598 7.71 7.71
PFC Loan 53.550 38,430.70 7,500.00
REC Loan 50.983 23,830.94 27,500.00
Interest Accured not due 13,813.81 5,667.10
76,083.15 40,674.81
TOTAL 9,71,845.63 8,34,156.48
*** Secured by Government Guarantee and Default Escrow
( in Lakhs )`
(v) : Descriptive details of Term Loan from others - Unsecured Borrowings
Standalone
TERM LOAN FROM AccountCode
S.NO.
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
102
Note No. 17-: Other Non-Current Financial liabilities
Note No. 18-: Long term Provisions
Note No. 19-:Current Financial Liabilities - Short-term Borrowings
Particulars
Particulars
Particulars
AccountCode
AccountCode
AccountCode
Others
Security Deposits 46.101, 46.121,46.111 69.83 615.31& 46.131
Liability-Lease Rental of Land (P.V.) 46.932 326.66 326.67
TOTAL 396.50 941.98
For employee Benefits
Leave Encashment 44.340 12,463.15 11,311.79
TOTAL 12,463.15 11,311.79
a) Loans Repayable on DemandFrom Banks - Secured
SBI CC Account* 50.110 11,662.69 -
Unsecured
Bank of India CC Account(Secured by Government guarantee 50.100 21,563.59 11,133.15and default Escrow)
b) Other Loans and Advance
From Others
Secured
WCL-REC** 50.983 - 15,000.00
Unsecured
PFC-Loan No: (Secured by default Escrow and hypothecation 50.600 82,096.61 81,000.00of assets and Rs. 2025.76 Lacs on default escrow only)
TOTAL 1,15,322.89 1,07,133.15
**Secured by First pari-passu charge by way of hypothecation of entire current assets of the company including raw material, stock-in-process, finished goods, stores and spares, receivables and other current assets with other working capital lenders.Limit Unutilised as on 31.03.2018.
** Secured by Default Escrow/Hypothecation of unencumbered existing assets of company.
( in Lakhs )`
( in Lakhs )`
( in Lakhs )`
Standalone
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
103
Note No. 20-: Currrent Financial Liabilities- Trade Payables
Note No. 21-: Other Current Financial Liabilities
Particulars
Particulars
AccountCode
AccountCode
(a) Total outstanding dues of micro and small enterprises* - -
(b) Total outstanding dues of creditors other than micro and small enterprises
-Liab.to Railways for Coal Receipts 40.110-40.180 37,059.03 34,379.28 -Liab.for Unpaid Coal Bills 40.700 8,025.24 2,806.81 -Coal Supplier Account 40.240 1,74,090.47 48,008.82 -Gas Related Cost 40.630 879.63 1,581.09 -Oil Supplier Account 40.420, 620 78.02 72.80 -Other Fuel Related Liability 40.310-40.330 10.37 10.37
Total (b) 2,20,142.75 86,859.16
TOTAL (a+b) 2,20,142.75 86,859.16
* Disclosure in respect of Micro, Small and Medium Enterprises as at as required by Micro, Small and Medium Enterprises Development Act, 2006 is ` Nil (P.Y ` Nil), on which auditors have been relied upon.
Current maturities of long-term debt (Refer Note No. 21.6) 4,00,537.08 2,30,205.18
Other Payables
-Security Deposits from Contractors 46.101-102, 44,601.99 44,466.1346.121-122
-Security Deposits from Employees 46.920 3.23 4.24
-Earnest Money Deposits 46.103 & 46.123 2,531.27 2,130.43
-Retention Money 46.124 & 46.104 1,17,744.09 1,19,222.91
-Due for Expenses 46.410 1,099.11 1,049.11
-Liability-Lease Rental of Land (P.V.) 46.932 44.50 44.50
-Amount payable to related parties(Refer Note No. 21.7) 46.971-73 6,035.07 6,028.17
&46.981-84
-Other Deposits 46.9XX 91,555.90 79,824.81
-Liabilities for Capital Works/Supplies 42.XXX & 42.110 24,499.97 22,554.33
-Liabilities for O&M Works/Supplies 43.XXX 16,361.05 12,264.37
-Prov. For Liab. For Expenses 46.430 17,769.60 22,941.08
-Sundry Liabilities 46.905,10,11 1,382.25 410.61
-Staff related liabilities 44.XXX 2,171.43 1,744.86
TOTAL 7,26,336.54 5,42,890.75
21.1 Miscellaneous deposits - Others(Other deposit) includes ` 4,644.66 Lakhs (P.Y. ` 3,937.56 Lakhs) related to Escrow account for Mines closure received from PKCL.
21.2 In respect of Inter Company transactions with other successor companies of erstwhile RSEB, no interest has been charged/paid.
( in Lakhs )`
( in Lakhs )`
Standalone
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
104
21.3 The Inter Company transaction in respect of Jd VVNL, JVVNL, AVVNL & RVPN have been reconciled up to the year 2017-18 and transactions of the current year are in the process of reconciliation.
21.4 Staff related liabilities and Loans and advances to staff are under Reconciliation/ Adjustment.
21.5 Provision towards liability for expenses/creation of prepaid expenses is not generally made for small / petty amounts.
21.6 Descriptive details for Current Maturity of Long Term Debts
Particulars
Term Loan from Banks - Unsecured Borrowings 1,78,977.64 33,333.67
Term Loan from others - Secured Borrowings 1,03,319.15 1,13,526.68
Term Loan from others - Unsecured Borrowings 62,269.34 35,007.71
Interest accrued but not due on term loan 40,520.30 40,974.55
Int. accured but not due on WCL loans 15,450.64 7,362.58
Total 4,00,537.08 2,30,205.18
( in Lakhs )`
( in Lakhs )`
( in Lakhs )`
21.7 Amount Payable to Related Parties
Note No. 22-: Other Current Liabilities
Particulars
Particulars
AccountCode
AccountCode
Amount Payable to RVPNL 46.981 3,367.94 3,374.57
Amount Payable to JVVNL 46.982 1,688.78 1,683.36
Amount Payable to AVVNL 46.983 99.57 99.57
Amount Payable to JdVVNL 46.984 877.05 868.92
Payable to Subsidiaries Companies 46.971-73 1.74 1.75
TOTAL 6,035.07 6,028.17
Income received in Advance 46.914 &46.917 446.46 413.79
Other Payables
-Staff related liabilities 44.XXX 621.03 587.13
-Statutory Liabilities 46.230-46.390 & 5,575.72 725.6446.924,46.918
-Prov.for Coal related cost 40.641 104.30 36.88
-Prov. For doubtful old balances-others 46.965 40.27 40.27
-Sundry Liabilities 3.00 4.89
TOTAL 6,790.79 1,808.60
Standalone
As at31.03.2019
As at31.03.2019
As at31.03.2019
As at31.03.2018
As at31.03.2018
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
105
Note No. 23-: Short Term Provisions
Note No. 24-: Deferred Revenue on account of advance against depreciation
Particulars
Particulars
AccountCode
AccountCode
Provisions for Employee Benefits
Pension 44.120 45,393.66 32,965.98
Ex-gratia 44.140 146.63 151.99
Leave Encashment 44.340 1,336.17 1,055.67
TOTAL 46,876.46 34,173.64
23.1 The provision for ex-gratia has been created on ad-hoc Basis.
Opening Balance 56.300 64,693.95 64,693.95
Add: Current Year Transfer 496.00 -
Less: Transferred to Statement of Profit and Loss - -
Closing Balance 65,189.95 64,693.95
24.1 Advance against depreciation (AAD) was an element of tariff provided under the Tariff Regulations for 2004-09 to facilitate debt servicing by the generators since it was considered that depreciation recovered in the tariff is not adequate for debt servicing. Though this amount is not repayable to the beneficiaries, keeping in view the matching principle, this was treated as deferred revenue to the extent depreciation chargeable in the accounts is considered to be higher than the depreciation recoverable in tariff in future years. Since AAD is in the nature of deferred revenue and does not constitute a liability, it has been disclosed in this note separately from shareholders’ funds and liabilities.
( in Lakhs )`
( in Lakhs )`
Note No. 25-: Revenue from Operations
ParticularsAccount
Code
For the Year endedst 931 March, 201
For the Year endedst31 March, 2018
Sale of Power (Refer Note No. 25.1) 61.410 14,83,915.52 13,16,385.32
Less: Advance against Depreciation Deferred 61.940 496.00 - (Refer Note No. 25.2)
Less : Trial Run Revenue (Infirm Power) 61.950 34,674.60 37,974.34
14,48,744.93 12,78,410.99
Sale of Fly Ash 62.351 7,087.19 9,745.33
Less: Transferred to Fly Ash Utilisation Fund 6,749.80 8,777.09
(Refer No. 15)
Less: GST and other Taxes 337.39 968.24
TOTAL 14,48,744.93 12,78,410.99
( in Lakhs )`
Standalone
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
106
25.1 Claims on account of late payment surcharge towards delayed payment by DISCOMs amounting to
`1,92,433.19 Lakhs (P.Y. ` 1,46,628.29 Lakhs) have been accounted for as Revenue from sale of
power in accordance with RERC Tariff Regulations.
25.2 In line with significant accounting policy No.12(iii), an amount of ̀ 496 Lakhs (P.Y ̀ "Nil" ) has been
transferred during the year to Deferred Revenue on account of AAD.
Note No. 27-: Generation & Other Direct Expenses
27.1 Details of Generation and Other Direct Expenses
Note No. 26-: Other Income
ParticularsAccount
Code
Interest Income:-
Interest on Loans and Advances to Staff 62.21X 0.05 0.22
Interest Income from Investments/Deposits 62.224 812.80 426.92
Less: Transferred to Fly Ash Utilisation Fund - 2.13
(Refer Note No. 15.3)
Other Non Operating Income:-
Sale of Scrap 62.3XX 1,177.56 385.88
Profit on sale of Property, Plant & Equipments 62.400 182.75 -
Miscellaneous Receipts 62.9XX 6,141.88 5,106.32
TOTAL 8,315.03 5,917.21
( in Lakhs )`
Particulars
Particulars
AccountCode
AccountCode
Generation & Other Direct Expenses
(Refer Note No. 27.1)
TOTAL 8,73,819.69 7,27,843.24
71.xxx,72.xxx 8,73,819.69 7,27,843.24
A. Fuel consumption
Cost of Coal Consumed (Steam) 71.110 8,49,938.16 6,91,895.83
Cost of Oil Consumed (Steam) 71.120 21,789.66 10,540.79
Cost of Gas Consumed (Internal Combustion) 71.140 33,605.58 50,780.54
Cost of Oil Consumed (Internal Combustion) 71.150 2.57 6.63
Other Fuel related Cost 71.2XX 2,260.08 3,614.65
Amortisation of Intangible assets 468.94 221.59
Fuel Related Losses 72.1XX 4,250.40 5,462.27
Total (A) 9,12,315.39 7,62,522.28
( in Lakhs )`
( in Lakhs )`
Standalone
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
107
B. Operating Cost
Cost of water 71.500 501.77 632.10
Lubricants and consumption store 71.600 379.95 937.15
Station Supplies 71.700 602.70 451.54
Other Cost 71.800 3,058.11 1,705.15
Total (B) 4,542.53 3,725.93
Total (A+B) 9,16,857.92 7,66,248.22
Less:- Cost of generation Capitalised 71.900 43,038.23 38,404.97
TOTAL 8,73,819.69 7,27,843.24
ParticularsAccount
Code
( in Lakhs )`
Note No. 28-:Repairs & Maintenance
Note No. 29-: Employee Benefits Expense
Particulars
Particulars
AccountCode
AccountCode
Plant & Machinery 74.1XX 28,914.18 20,619.48
Buildings 74.2XX 1,117.66 1,099.25
Civil Works 74.3XX 952.17 1,011.62
Hydraulic Works 74.4XX 54.75 80.64
Lines, Cables & Networks 74.5XX 56.24 26.87
Vehicles 74.6XX 21.66 22.14
Furniture & Fixtures 74.7XX 2.91 3.17
Office & Other Equipments 74.8XX 127.00 15.18
TOTAL 31,246.58 22,878.36
Less:- Repairs,Maintenance Expenses Capitalised 74.900 119.39 557.40
TOTAL 31,127.19 22,320.96
(a) Salaries and incentives (Refer Note No.29.1) 75.000-400,75.615-617 & 619
(b) Contributions to Terminal Benefits 75.8XX 17,416.79 13,420.15 (including provident fund)
(c) Staff welfare expenses (Refer Note no. 29.2) 75.6xx & 75.7xx 2,155.17 1,246.25
TOTAL 51,695.35 44,519.96
Less: Employee Cost Capitalized 75.900 3,548.58 3,522.98
Less: Acturial Loss/(Gain) 8,963.88 5,998.87
TOTAL 39,182.89 34,998.10
32,123.39 29,853.56
( in Lakhs )`
( in Lakhs )`
Standalone
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
108
29.1 Details of Salaries & Allowances
29.2 Details of Staff Welfare expenses
Particulars
Particulars
AccountCode
AccountCode
Basic & Grade Pay 75.1XX 23,066.90 15,294.74
Overtime 75.2XX 528.87 431.62
Dearness Allowances 75.3XX 2,134.17 8,844.54
Other Allowances 75.4XX 1,092.53 764.32
Exgratia 75.615 143.38 166.73
Leave Encashment 75.617 3,149.81 2,695.90
Generation Incentive & Award 75.619 2,007.72 1,655.71
TOTAL 32,123.39 29,853.56
D.L.I. Nigam contribution 75.620 67.92 52.07
D.L.I. Admn. Charges 75.621 11.16 10.30
ESI Admn. Charges 75.622 15.54 49.15
Medical Insurance Premium 75.609 28.55 15.56
Medical Reimbursement 75.610-611 142.16 151.91
Training Expenses 75.614 628.68 203.87
Medical Expenses-Dispensary inside plant 75.710 34.62 17.37
Medical Expenses-Dispensary inside colony 75.711 0.13 2.98
Education Expenses 75.730 990.91 490.40
Canteen Expenses 75.720 76.66 77.33
Uniform & Liveries 75.740 24.67 30.72
Soap & Duster 75.741 4.91 5.55
Safety Devices 75.742 5.66 47.72
Recreation Expenses 75.750 8.65 9.81
Other Welfare Expenses 75.760 114.94 81.51
Payment of Annuity Benefits 75.770 - 0.01
TOTAL 2,155.17 1,246.25
( in Lakhs )`
( in Lakhs )`
Standalone
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
109
29.3 Disclosure as per Indian Accounting Standard - 19 on ‘Employee Benefits’
General description of various employee benefit schemes are as under:
1 At the time of RSEB a separate fund was available in the books of RSEB for payment of pension
to retired employees/to be retired employees. After unbundling a separate trust was created in
2001 and fund available in the RSEB was transferred to Trust through Transfer Scheme and is
being now funded regularly from the contribution by the successor entities.
2 During the year, in accordance with the provisions of Ind AS-19- "Employees Benefits", acturial
valuation has been obtained in respect of liability of Pension, Gratutity and Leave
Encashment.
3 As per Ind AS-19- "Employee Benefits" states benefits involving employer established
provident funds, which require interest shortfall to be provided, are to be considered as defined
benefits plans.The obligation of the company is to ensure minimum rate of interest to the
members as specified by GOI.Such liability (if any) is not ascertained. Hence, effect in this
respect has not been provided.
The contribution of ` 2,147.01 Lakhs (P.Y. ` 1,613.11 Lakhs) for the year is recognised as
expense and charged to Statement of Profit & Loss.
4 AS per Actuarial Valuation the following table sets forth position of Defined Benefit Plans:-
Actuarial Assumptions:
Particulars Pension Gratuity Leave Encashment
Discount Rate Mortality 7.66% 7.66% 7.66%
Valuation Methodology (Projected Unit (Projected Unit (Projected Unit
Credit Method) Credit Method) Credit Method)
Future Salary Increases 8.00% 8.00% 8.00%
A.Changes in present value of defined benefit obligations as on 31.03.2019 (` in Lakhs )
Particulars Pension Gratuity Leave Encashment
Present Value of obligation as at the 89,159.98 17,562.88 12,367.46
beginning of the period (31/03/2018) (77,307.02) (15,711.01) (10,962.73)
Interest cost 6,892.07 1,357.61 956.00
(5,697.53) (1,157.90) (807.95)
Past Service Cost - - -
- (1,496.1) -
Current Service Cost 1,979.75 1,035.77 965.94
(1,985.55) (956.33) (801.36)
Benefits Paid -4,918.00 -1,587.00 -1,640.80
(-3,160.00) (-988.00) (-1,275.22)
Acturial Gain(-) / loss(+) on obligation 8,668.87 472.70 1,150.72
(7329.89) (770.43) (1070.63)
Present value of obligation as at the end of 1,01,782.66 18,841.96 13,799.32
Period (31/03/2019) (89,159.98) (17,562.88) (12,367.46)
Enterprise best estimate for expense next year is ` 1,108.29 Lakhs - Gratuity
Enterprise best estimate for expense next year is ` 2,108.07 Lakhs - Earned leave liability.
Enterprise best estimate for expense next year is ` 6,407.81- Pension.
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
110
B. Changes in Fair Value of Plan Assets as at 31.03.2019
Particulars Pension Gratuity
Fair value of Plan assets at the beginning of the period 56,194.00 18,934.00
(53,901.00) (17,570.00)
Expected Return on Plan asset 4292.47 1,449.84
(3,972.50) (1,294.91)
Employer Contributions 1,390.00 1,097.00
(1,117.00) (860.00)
Benefits Paid -4,918.00 -1,587.00
(-3,160.00) (-988.00)
Actuarial gain(+)/loss(-) on plan assets 94.53 83.16
(363.50) (197.09)
Fair value of Plan assets at the end of the period 56,389.00 19,799.00
(56,194.00) (18,934.00)
*The current year figures are tentative and subject to finalization and audit of Trust accounts.
C. Amount recognized in Balance Sheet
Particulars Pension Gratuity Leave Encashment
Present value of obligation as at the end 1,01,782.66 18,841.96 13,799.32
of Period (31/03/2019) (89,159.98) (17,562.88) (12,367.46)
Fair value of Plan assets at the end of the 56,389.00 19,799.00 -
period (31/03/2019) (56,194.00) (18,934.00) -
Net Liability/Assets(-) recognized in 45,393.66 -957.04 13,799.32
Balance Sheet as provision (32,965.98) (-1,371.12) (12,367.46)
D. Amount recognized in Statement of Profit & Loss
Particulars Pension Gratuity Leave Encashment
(i) Amount included in Profit and loss
Current Service Cost 1979.75 1,035.77 965.94
(1,985.55) (956.31) (801.36)
Past service cost - - -
- (1,496.10) -
Interest Cost (+)/income (-) 2,599.60 -92.23 956.00
(1,725.02) (-137.00) (807.95)
Net acturial (gain) / loss recognised in the - - 1,150.72
period - - (1,070.63)
Net amount recognized in P&L 4,579.34 943.54 3,072.66
(3,710.57) (2,315.40) (2,679.94)
(ii) Amount included in OCI
Net amount recognized in OCI -8574.34 -389.54 -
(-6,966.39) (967.52) -
Figures of previous year (in brackets) have been given to the extent available.
Standalone
( in Lakhs )`
( in Lakhs )`
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
111
E.Other Disclosures
Pension 2018-19 2017-18
Present value of obligation as on 31st March 1,01,782.66 89,159.98
Fair value of Plan assets 56,389.00 56,194.00
Liability / (Assets) 45,393.66 32,965.98
Unrecognised past service cost - -
Liability / Assets(-) recognised in Balance Sheet 45,393.66 32,965.98
Gratuity 2018-19 2017-18
Present value of obligation as on 31st March 18,841.96 17,562.88
Fair value of Plan assets 19,799.00 18,934.00
Liability / (Assets) -957.04 -1,371.12
Unrecognised past service cost - -
Liability / Assets(-) recognised in Balance Sheet -957.04 -1,371.12
Earned Leave Liability 2018-19 2017-18
Present value of obligation as on 31st March 13,799.32 12,367.46
Fair value of Plan assets - -
Liability / (Assets) 13,799.32 12,367.46
Unrecognised past service cost - -
Liability / Assets(-) recognised in Balance Sheet 13,799.32 12,367.46
Major categories of plan assets
Particulars 31.03.2019 31.03.2018
Funds Managed by Insurer 76,188.00 75,128.00
Total 76,188.00 75,128.00
Sensitivity Analysis:
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding
other assumptions constant, would have affected the defined benefit obligation by the amounts shown
below:
a) Impact of the change in discount rate Pension Gratuity Leave encashment
Present Value of Obligation at the end of 1,01,782.66 18,841.96 13,799.32
the period
Impact due to increase of 0.50 % (4,506.10) (694.76) (610.92)
Impact due to decrease of 0.50 % 4,891.92 751.64 663.23
b) Impact of the change in salary increase Pension Gratuity Leave encashment
Present Value of Obligation at the end of the 1,01,782.66 18,841.96 13,799.32
period
Impact due to increase of 0.50 % 4,852.40 406.70 657.87
Impact due to decrease of 0.50 % (4,512.55) (407.29) (611.79)
Sensitivities due to mortality & withdrawals are not material & hence impact of change not calculated.
Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before
retirement & life expectancy are not applicable being a lump sum benefit on retirement.
Standalone
( in Lakhs )`
( in Lakhs )`
( in Lakhs )`
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
112
Risk Exposure:Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow - A) Investment Risk:
If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.
B) Discount Rate:Reduction in discount rate in subsequent valuations can increase the plan’s liability.
C) Mortality & disability:Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
D) Withdrawals:Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.
Expected maturity analysis of defined benefit plans in future years
Less than Between Between Over 5 years Total
Particulars 1 year 1-2 years 2-5 years
31-Mar-19
Pension 6,231.66 4,616.36 14,434.76 76,499.87 1,01,782.66
Gratuity 2,382.64 2,329.83 4,014.10 10,115.40 18,841.96
Leave Encashment 1,336.17 1,234.75 2,924.35 8,304.05 13,799.32
Total 9,950.46 8,180.94 21,373.21 94,919.32 1,34,423.93
31-Mar-18
Pension 4,383.68 8,635.70 13,944.63 62,195.97 89,159.98
Gratuity 1,981.15 699.04 1,462.09 13,420.60 17,562.88
Leave Encashment 1,107.03 1,064.35 2,564.00 7,632.05 12,367.43
Total 7,471.86 10,399.09 17,970.72 83,248.62 1,19,090.29
Note No. 30-: Finance Costs
( in Lakhs )`
ParticularsAccount
Code
Interest expenses (Refer Note No.30.1) 78.100-78.729 4,15,254.24 3,99,727.10
Lease Rentals 78.891 41.28 40.75
Other Borrowing Cost (Refer Note No. 30.2) 78.830 to 78.861 14,305.75 14,614.29
Add:Unwinding of Interest SD 78.841 17.36 163.74
Add:Unwinding of Interest Lease 78.842 50.57 50.57
TOTAL 4,29,669.20 4,14,596.44
Less: Finance Cost Capitalised 78.900 1,19,846.05 1,45,968.20
TOTAL 3,09,823.15 2,68,628.24
Standalone
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
113
30.1 List of Interest expenses( in Lakhs )`
ParticularsAccount
Code
Interest on Long Term Loans(A):
Interest on State Government Loans 78.100 1,898.46 1,898.46
Interest on Bonds 78.210 7,572.00 7,572.00
Interest on Loans from Financial Institutions:
-Interest on Loans from LIC 78.501 - 14.52
Interest on Loans from REC 78.504 61,699.69 60,150.59
-Interest on loans from World Bank 78.516 1.92 2.62
-Interest on loans from PFC 78.517 1,84,799.95 1,96,206.75
Sub-Total (A) 2,55,972.02 2,65,844.95
Interest on Short Term Loans (B):
Int. on WCL- PFC 78.701 63,968.89 69,065.70
Int. on WCL- REC 78.702 55,532.74 45,042.04
Int. on WCL- HUDCO 78.703 - 20.58
Int. on WCL- BOI 78.718 24,169.54 18,734.35
Int. on WCL- Others 78.720 (9,745.25) (9,533.04)
Int. on WCL- Allahabad Bank 78.721 4,707.24 0.56
Int. on WCL- Syndicate Bank 78.714 4,284.56 879.64
Int. on WCL- Canara Bank 78.704 1,904.27 -
Int. on WCL- ANDHRA Bank 78.726 4,368.84 985.78
Int. on WCL- Indian overseas Bank 78.729 10,091.40 8,686.53
Sub-Total (B) 1,59,282.22 1,33,882.15
Total (A to B) 4,15,254.24 3,99,727.10
30.2 List of Other Borrowing Cost
( in Lakhs )`
ParticularsAccount
Code
Finance Charges:
Commitment Charges 78.866 7.84 5.11
Other Bank Charges 78.881-83 61.61 54.83
Guarantee Charges 78.884 14,135.06 13,863.21
Other Finance Charges 78.830 & 78.886 101.24 687.47
Deffered Revenue Exp.written-off 79.610 - 3.68
TOTAL 14,305.75 14,614.29
Standalone
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
114
30.3 Penal interest/commitment charges, if any, being part of the terms and conditions of the
loan, have not been shown separately and are included in interest & finance charges.
30.4 During the year, Net Interest & Finance charge pertaining to projects under construction
amounting to ̀ 1,19,846.05 Lakhs (P.Y. ̀ 1,45,968.20 Lakhs) have been capitalized. Further
an amount of ` 12,187.74 Lakhs (P.Y. ` 10,828.86 Lakhs) towards interest and finance
charges has been charged to GLPL on pro-rata basis on the funds utilized for GLPL.
Note No. 31-: Depreciation & Amortisation Expenses
Note No. 32-: Administration and Other Expenses
Particulars
Particulars
AccountCode
AccountCode
Amortisation of lease hold lands 77.110 20.14 20.14
Depreciation on Building 77.120 10,821.77 9,085.81
Depreciation on Hydraulic Works 77.130 10,271.81 9,194.25
Depreciation on Other Civil Works 77.140 1,918.09 1,821.24
Depreciation on Plant & Machinery 77.150 1,04,621.79 92,581.21
Depreciation on lines and Cables Net Works 77.160 246.97 246.12
Depreciation on Vehicles 77.170 10.95 9.65
Depreciation on Fixtures & Furnitures 77.180 70.62 67.86
Depreciation on Office Equipments 77.190 114.65 111.66
Dep. on Capital spares at generating stations 77.230 3,155.12 379.15
Dep. on O & M Spares 77.260 819.51 3,941.36
Amortisation of Intangible assets 468.94 221.59
Less:carried to Note 27 Generation & Other Direct 468.94 221.59Expenses
1,32,071.42 1,17,458.45
Less:- Depreciation Capitalised 77.900 140.76 163.03
TOTAL 1,31,930.66 1,17,295.43
Rent, Rates & Taxes 76.101-76.102 264.30 480.05
Licence & Registration fee of Plant & Machinery 76.103 196.88 504.42
Insurance on Fixed Assets 76.104 2,567.49 2,422.98
Insurance on Vehicles and Others 76.107,76.109, 23.05 26.15 76.105
Security Service Charges 76.108 5,680.98 4,635.98
Telephone,Telex & EPABX Expenses 76.111&76.114 87.35 114.11
Postage & Telegrame 76.112 7.07 6.05
Legal Charges 76.121 122.30 206.12
Payment to Auditors 76.122
( in Lakhs )`
( in Lakhs )`
Standalone
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
115
ParticularsAccount
Code
i) As Statutory Auditors 7.08 7.08
ii) For Reimbursement of Expenses 2.43 2.49
Consultancy Charges 76.123 1,225.27 1,671.60
Other professional charges 76.125 0.27 -
Tariff Fee 76.126 79.10 410.72
Conveyance expenses 76.131 7.98 7.19
Travelling expenses 76.132 128.93 86.83
Travelling allowance to employees 76.133 164.51 22.03
Vehicle Running expenses 76.135-76.139 1,326.94 1,281.25
Newspapers & magazines 76.150 1.37 0.87
Other miscellaneous expenses 76.151-76.170, 1,068.44 666.22 76.172-76.190, 76.127-76.128,79.571 & 79.120
Expenditure on CSR Activities 76.171 1,473.66 257.77
Freight & Material related expenses 76.210 - 76.272 265.43 255.09
Bad & Doubtful Debts 79.470 18.78 -
SUB TOTAL 14,719.62 13,065.00
Less:Administration and other expenses capitalised 76.900 3,147.70 2,183.64
TOTAL 11,571.92 10,881.36
32.1 In absence of determination of rent of buildings of the company occupied by other successor companies and vice-versa neither income nor expenditure is generally accounted for in the books during the period. The credit of HRA also not transferred / received in respect of residential accommodation owned by RVPN & occupied by employees of RVUN and vice-versa, respectively.
32.2 A CSR Policy has been approved by the Board of Directors of the Company in its 182 meeting held on 10.02.2011. As per the said policy an amount of ̀ 1101.94 Lakhs is to be spent by the company till 31 March 2019 (P.Y ̀ 925.56 Lakhs) against CSR activities towards its running power stations whereas the company has spent ̀ 464.70 Lakhs till 31 March 2019 (P.Y ̀ 429.98 Lakhs). Further, as per the said policy the company has also to spend towards capital expenditure related to new projects, the complete details & quantum thereof is yet to be ascertained.
( in Lakhs )`
Note No. 33:- Impairment Loss
ParticularsAccount
Code
Provision for Impairment 79.480 45,762.46 41,634.45
TOTAL 45,762.46 41,634.45
Standalone
( in Lakhs )`
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
116
Note No. 34-: Earnings Per Equity Share (EPS) and Diluted EPS
Particulars
Profit attributable to equity shareholders (used as numerator)
Particulars
Weighted average number of equity shares (used as the denominator)
Basic and diluted earnings per share (In ) 0.` 0.14 64
Profit attributable to the equity holders of the company used in 13,842.00 60,726.41calculating basic and diluted earnings per share
Opening Balance of issued equity shares 9,67,54,20,000 9,35,88,20,000
Effect of shares issued during the year 19,87,00,356 15,48,65,343
Weighted average number of equity shares for basic and diluted 9,87,41,20,356 9,51,36,85,343 earnings per share
( in Lakhs)`
( Nos.)
Note No. 35-: Other Disclosures
35.01 Disclosure as per Ind AS 37 Provisions, Contingent Liabilities & Contingent Assets
Capital Commitments:-
a) The estimated amount of contracts remaining to be executed on capital account, or yet to be and provided for (net of advances) is ̀ 1,44,268.27 Lakhs as at 31.3.2019 (As at 31.03.2018 ̀ 3,24,934.31 Lakhs ).
b) Other Commitments:-
(i) New/Future Power Projects:- The State Government has earlier entrusted the company to establish additional 4950 MW by setting up the following New Power Projects .Present status of the same is as under:-
S. Project Installed Project cost Remarks
No. Capacity MW As At
31-03-2019
1 Banswara Supercritical Unit 1&2 660 X 2 7,92,000.00 In the meeting held on dated 15 .02 .2019 under the Chairmanship o f Chei f Secretary, GoR, it was decided that upon getting response from Ministry of Railway, G o v e r n m e n t o f I n d i a regarding construction of proposed railway line from Ratlan to Dungarpur via Banswara, further action for setting up of this project will be taken.
2 Kalisindh Supercritical Unit 3&4 660 X 2 7,92,000.00 The Coordination Committee in its 11th Meeting held on 20.06.2018 has considered the proposal of development of 2x660 MW Kalisindh Supercritical TPP units at pit head rather than at Kalisindh
Standalone
( in Lakhs )`
For the Year endedst 31 March, 2019
For the Year endedst 31 March, 2019
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst31 March, 2018
For the Year endedst31 March, 2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
117
through case-2 (DBFOT basis) tariff based competitive bidding process.
A task force was constituted vide order no. RVUN/CMD/ P . c e l l / F / D . 1 8 9 d a t e d 27.07.2018 to identify land and water available at pit head in state of Chhattisgarh near to RVUN coal block.Task force submitted its report on 1 2 . 0 9 . 2 0 1 8 t o R V U N management.
3 Suratgarh Supercritical Unit 9&10 660 X 2 792,000.00 No Preliminery action has
been initiated. Ceases to 13th
plan owing to heavy fuel
transportation cost.The project
was deferred by Energy
Assessment Committee in
view of less demand.
4 Kota Gas Thermal Project 3 X 110 132,000.00 Projects deferred by Energy
Assessment Committee in
view of less demand and non-
availability of gas.
5 Chhabra Gas Thermal Project 3 X 110 132,000.00
6 Dholpur Gas Extension Stg-II 3 X 110 132,000.00
c) Provisional Disallowance of Capital Cost
While finalisation of the capital cost of new power project / unit of the company, RERC has considered only 50% of overrun IDC and disallowed 50% LD. As the disallowances are provisional subject to the final approval of capital cost of the Project/unit , the disallowed capital cost amounting ` 2,34,697.00 Lakhs as at 31-03-2019 (As at 31-03-2018 ` 1,62,718.00 Lakhs ) at this stage has not been accounted for.
Contingent liabilities :-
a) The company has outstanding bank guarantees given by commercial banks in favour of following :-
Standalone
( in Lakhs )`
S. No. Name of Bank
Amount
Current year/
(Previous Year)
-
(529.20)
2 -
(502.74)
3 -
(396.90)
4 108.11
(108.11)
5 238.21
(238.21)
6 473.86
(473.86)
7 285.77
(285.77)
8 33,060.00
(33,060.00)
SBI, Collectrate
Branch, Jaipur
M/s SECL Supply of Coal to CTPP Unit-2 (as security deposit)
SBI, Collectrate
Branch, Jaipur
Nominated Authority, Ministry of
Coal, GoI
Parsa East & Kanta Basan Coal Mine
SBI,
Commercial
Branch, Jaipur
M/s SECL For Coal supply at KTPS Unit 7 (SD)
SBI,
Commercial
Branch, Jaipur
M/s SECL For Coal supply at CTPP Unit 2 (SD)
SBI,
Commercial
Branch, Jaipur
M/s SRCPL For transportation of coal from coal block to Surajpur
Road Railway Station for further delivery of coal to
RVUN’s power
1 SBI,
Commercial
Branch, JaipurSBI,
Commercial
Branch, JaipurSBI,
Commercial
Branch, Jaipur
CMD SECL Bilaspur For coal supply to Kota Unit - VII (SD)
CMD South Eastern Coal Field
Ltd., Bilaspur
CMD SECL Bilaspur
For coal supply to Chhabra Unit - I (S.D.)
For coal supply to Suratgarh Unit - VI (SD)
In favour of Purpose
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
118Standalone
b) The company has outstanding letter of credit/IRLC issued by the Commercial Banks in
favour of following firms:
c) Claims against the company not acknowledged as debts as at 31.03.2019.
(i) (i) At KTPS, SSTPS and DCCPP, a disputed claim of ` 5,479.00 Lakh, ` 189.00 Lakh & `36.97
Lakh respectively on account of water cess claimed by Rajasthan State Pollution Control Board
for which appeal have been filed with the Chairman RSPCB.
(ii) At KTPS and SSTPS Disputed claim on account of interest on delayed payment/Incentives of
coal supplies bills and other demands by SECL amounting to ̀ 11,173.00 Lakhs & ̀ 12,366.89
Lakhs respectively. These claims are subject to verification and reconciliation. Further such
claims shall be admitted only after mutual discussions/ reconciliations and acceptance of
counter claim of RVUN by the other party.
2,133.15
(2,133.15)
8,570.00
(8,570.00)
1,648.45
(1,648.45) -
(368.21)
-
(460.22) -
(3,000.00)
27.87
(27.87)
3,000.00
(0.00)
529.20
(0.00)
502.74
(0.00)
396.90
(0.00)
358.24
(0.00)
431.40
(0.00)
Nominated Authority, Ministry of Coal, GoI
Dena Bank
For making E-Payment to ECR on account of coal supply at STPS
13016/74/2006/CA-1- dt 19/25.06.07 for allocation of coal blocks
14Under Secretary, MoC, GoI Kente Extension Coal Mine
Kente Extension Coal MineUnder Secretary, MoC, GoI
Parsa Coal Mine
For making e-payment to ECR on account of coal supply at STPSthe president of India, Represented throught The FA& CAO, East Central Railway, Hazipur, Bihar
SBI, Exhibition Road, Patna Branch, Bihar
20
21
SBI, Exhibition Road, Patna Branch, Bihar
the president of India, Represented throught The FA& CAO, East Central Railway, Hazipur, Bihar
For making e-payment to ECR on account of coal supply at KTPS
Bank of India, Jaipur
Bank of India, Jaipur
Bank of India, Jaipur Nominated Authority, Ministry of Coal, GoI
SBI, Exhibition Road, Patna Branch, Bihar
The president of India, Represented throught TheFA&CAO,East central Railway, Hazipur, Bihar
For making E-Payment to ECR on account of coal supply at KTPS
SBI, Exhibition Road,Patna Branch, Bihar
The president of India, Represented throught TheFA&CAO,East central Railway, Hazipur, Bihar
M/s SECL For coal supply to Kota Unit -VII(S.D.)
SBI, Commercial Branch M/s SRCPL For transportation of coal from coal block to Surajpur Road Railway Stationfor v delivery of coal to RVUN’s power stations
16Bank of India, Jaipur Under Secretary, MoC, GoI Kente Extension Coal Mine
15
13
12
11
10
9
17Bank of India, Jaipur M/s SECL For coal supply to Chhabra Unit - I (S.D.)
18Bank of India, Jaipur M/s SECL For coal supply to Suratgarh Unit -VI (S.D.)
19Bank of India, Jaipur
1700.00
(1700.00)
900.00
(900.00)
1800.00
(1,800.00)
154.00
(0.00)
1655.00
(1,500.00)
For Gas Supply at DCCPP3 SBI, commercial
Branch
M/s GAIL (India) Ltd.
4 SBI, commercial
Branch
M/s GAIL (India) Ltd. For Gas Supply at RGTPP
5 Bank of India, Jaipur M/s SECR E-payment of Railway Freight for transportation of coal to RVUN’s TPS
1 SBI, Branch M/s GAIL (India) Ltd. For Gas Supply at RGTPP
2 SBI,Branch M/s GAIL (India) Ltd. For Gas Supply at RGTPP
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
119
(iii) The revision appeals of stamp duty case have partly been accepted by the Honorable Rajashtan
Tax Board, Ajmer vide decision dated 22.10.2018 against a demand opf stamp duty & interest of
Rs. 1,580.00 Lakhs levied by the Additional Collector (Stamps) Jaipur. For filing such appeal
25% of the demand i.e. Rs, 395.00 Lakhs was deposited. According to the said decision the case
has been referred to the Additional collector (stamps) Jaipur by the Honorable Rajashtan Tax
Board, Ajmer for review the matter in detail.
(iv) The Indian Railway raised a demand of ` 3,619.58 Lakhs (P.Y ` 3,619.58 Lakhs) unilaterally
without any proper logic/justification on company for disallowances of rebate on To pay
surcharge for non-maintaining of minimum advance balance by SSTPS with railway.
(v) The Ministry of Coal vide letter dated 25.06.2007 allocated Parsa East and Kente Basan coal
block to the company in the state of Chhattisgarh to meet the coal requirement of the company's
power projects. Subsequently a Joint Venture Company was formed namely M/s Parsa Kente
Collieries Ltd (Known as PKCL) with Adani Enterprises Ltd.
(a) A Coal Mining and Delivery Agreement (CMDA) was signed with the Joint venture
Company. As per CMDA, the schedule date of commencement of coal supply was 25 June
2011; however the actual+B111 supply was commenced from 25 March 2013 due to force
majeure agreed by the company. The Board in its 228th meeting held on 28 August 2013
decided to extend the commencement of coal supply date from 25 June 2011 to 25 March
2013 without levy of any penalty on Joint Venture Company. The Joint Venture Company
has raised demand for price escalation amounting to Rs. 12,170.00 Lakhs (approx.) for FY
2017-18. PKCL also claimed fixed charges amounting to Rs. 7,800.00 Lakhs (approx.) on
account of short quantity lifted by RVUN in FY 2013-14. As the above dispute could not be
resolved within the contractual provisions of CMDA. Therefore the above case was referred
to Sole Arbitrator. The Sole Arbitrator has passed Award on 27.05.2015 in favour of Joint
Venture Company namely PKCL. The company (RVUN) filed application under section 34
of The Arbitration & Conciliation Act 1996 against this award in the District Court of
Jaipur.
After several hearings, Hon'ble Judge District and Sessions Court ADJ-1 Jaipur
Metropolitan rejected the appeal application of RRVUN filed under section 34 of arbitration
of and Conciliation Act, 1996 and maintained the status of the Arbitration award
pronounced by Sole Arbitrator as correct. RVUN filed application against above awards on
03.07.17 under section 37 of Arbitration Act read with Section 13 of Commercial Courts,
Commercial division & Commercial Appellate Division of Hon'ble Rajasthan High Court,
Jaipur Bench. Hon'ble Rajasthan High Court, Jaipur Bench on 28.02.2018 has passed its
decision in favour of RVUN. Further, M/s PKCL has filed a SLP in the Supreme Court of
India, New Delhi against the decision of the Hon'ble Rajasthan High Court, Jaipur Bench
passed on 28.02.2018 in favour of RVUN.
Hon'ble Supreme Court vide order dated 27.05.19 in the above matter ordered for claim of
Price Adjustment/Escalation in favour of M/s PKCL and the claim of Fixed cost in favour of
RVUN. As per above decision of Hon'ble Supreme Court, the claim of M/s PKCL towards
Fixed Cost is not payable.
PKCL has claimed an amount of Rs 314.57 Crores towards Price escalation and an amount
of Rs 88.05 Crores towards interest as per Supreme Court Judgment dated 27.05.19.
RVUNL filed Review Petition on dated 25.06.2019 in Supreme Court of India against the
judgment. Hon’ble Supreme Court of India in its judgment dated 24.07.2019 dismissed the
review petition. Further legal course of action as available to the company shall be taken as
per opinion of the Advocate General/Addl. Advocate General, Rajasthan in Supreme Court
of India. The liability towards Price escalation/interest has not been acknowledged by the
company so far as the company intends to explore other available legal options against the
order of this Review Petition. Even if the liability as per hon’ble Supreme Court order
becomes imperative on the company, the company would in any case recover the same
amount from the Discoms as per RERC tariff Regulations.
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
120
Particulars
(vi) Track Access & Usage Agreement for payment of track access charges on account of use of private
railway track developed by M/s Sarguja Rail Corridor Pvt. Ltd. (SRCPL) for transportation of coal
from Parsa East & Kanta Basan, Kente Extension and Parsa Coal blocks to Surajpur Road
Railway station for delivery of coal to RVUN's power station has been signed between RVUN and
SRCPL on 22.07.2015. As per terms of Track Access & Usages Agreement, there is Take or Pay
obligation for shortfall in off-take of coal by RVUN. M/s SRCPL raised a debit note amounting to
Rs. 492.75 Lakhs against Take or Pay obligation of RVUN for a shortfall of coal in the off take
quantity for the year 2015-16. Further M/s SRCPL has also raised interest claim amounting to
Rs. 63.04 Lakhs on account of delay in payment. RVUN has agreed for payment of Rs. 492.75
Lakh towards "Take or Pay" charges for the year 2015-16 as per provisions of Track Access &
usage Agreement executed between RVUN & SRCPL,without interest thereon. There is no Take
or Pay obligation for shortfall in off-take of coal by RVUN for FY 2018-19.
(vii) Liability on account of the matters under litigation has not been provided for, as claims in respect
thereof have not been entertained and are being contested. The total amount of liability which
can reasonably be ascertained is ̀ 64,684.14 Lakhs ( PY ̀ 2,608.80 Lakhs). Other matter mostly
pertains to the employees where the amount of probable liability/obligation is not ascertainable.
(viii) Taxation matters for which liability is disputed and provision is not made (computed on the basis
of assessments/demand made by the department):
Central Excise demand 32.09 16.45
Other taxation matter for which company is in appeal 990.65 990.65
*Service Tax Matter 47.57 3.67
*Demand of service tax amounting Rs. 14.68 Lakhs was raised along with interest and penalty.
Principle amount of demand has been deposited. At present case is being contested by the company
to save further interest & penalty liabilities.
The Income Tax assessment of the company has been completed upto the Assessment year 2015-
2016. However, following appeals are pending against the assessment order/penalty order:-
1. RVUN’s appeal for the Assessment Year 2001-02 and 2002-03 are pending at CIT(A) against the
penalty order.
2. RVUN’s appeal for the Assessment Year 2005-06 and 2011-12 are pending at ITAT against the
order of the CIT(A).
3. Department’s appeals for the Assessment Year 2001-02, 2002-03, 2003-04, 2004-05, 2005-06,
2007-08, 2008-09, 2009-10 are pending at High Court against the Assessment order.
4. Department’s appeals for the Assessment Year 2006-07 and 2007-08 are pending at Supreme
Court against the Assessment order.
RVUN has received notice of show cause cum demand in respect of Service Tax from the
Directorate General of GST. The amount involved under said notice of show cause cum demand
is Rs. 473.44 crore plus interest plus penalty thereon. RVUN received the consideration from the
Discoms against the sale of electricity and Late payment Surcharge as per the PPAs with the
Discoms and regulations of RERC. Hence, in case the aforesaid liabilty of service tax on deemed
energy and LPS got materialized, the company expects reimbursement of the same from the
Discoms.
The out flow on account of the claims against the company not acknowledged as debts and tax
disputes is contingent upon the decision of the courts/other authorities and may differ from the
Standalone
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
121
amounts disclosed as contingent liability on the basis of estimates.
(ix) M/S BGRESL, the EPC contractor for setting up of 2 X 600 MW kalisindh Thermal Power Project,
has claimed Rs. 97,758.20 Lakhs. As RVUNL has not acknowledge the claims, the government of
Rajasthan have appointed a sole arbitrator for settlement of disputes. The matter is under
subjudice, therefore, liability in this regard has not assessed by the company.
(x) Some disputes with M/s PKCL have been referred before sole arbitrator in term of clause no.10.2
of the Coal Mining and Delivering Agreement (CMDA). Quantum of disputed amount is Rs.
41,101.38 Lakhs. As the above matter is subjudice in the court, therefore, the liability thereon
cannot be assessed presently.
35.02 The company does not expect any reimbursement in respect of above contingent liabilities except fuel
related liabilities.
35.03 It is not praticable to estimate the timming of cash outflows, in respect of matters above pending in
arbitration/ appellate procedings.
35.04 Contingent Assets :-
(a) An amount of Rs. 809.33 lakhs (PY 524.85 lakhs ) pertains to ash disposal in wet form has not
been recognized as revenue as the matter is subjudice in the court.
(b) Amount of unsettled claims lodged by RRVUNL to coal companies is Rs. 63,611.89 lakhs.
(c) While determining tariff for the company,the RERC has disallowed certain Capital/O&M
expenditure incurred by the company.The company has filed appeals with the Appellate
Tribunal for Electricity (APTEL) against the tariff orders issued by the RERC. The company
believes that a favourable outcome is probable and the estimated financial impact of the same
may be amounting to Rs. 28,333.00 Lakhs.
35.05 Note for Disinvestment
a) Chhabra TPP (4X250 MW U# 1 to 4 under operation + 2X660 MW under execution):
The State Cabinet had accorded their approval on 23.02.2016 for disinvestment of ChhabraTPP
either to NTPC( on Direct Negotiation or Asset Sale basis) or through Open Competitive Bidding.
The Process of disinvestment of chhabra TPP to NTPC or through open Competitive Bidding
Route was under hold due to various issues including transfer of coal from RVUN Coal blocks to
the prospective buyers.Looking to the improvement in operational performance of CTPP as well
as the turnaround in its financial performance, RVUN requested to GoR to review the decision of
Disinvestment of CTPP plant of RVUN. The State Cabinet, GoR has decided to not to disinvest
the Chhabra TPP (unit - 1 to 6) order dated 27.06.2019.
b) Kalisindh TPP (2X600 MW U# 1 and 2 under operation):
The State Cabinet had accorded their approval on 16.01.2017 for disinvestment of
KalisindhTPP through Open Competitive Bidding. The process of disinvestment of KalisindhTPP
was under hold due to various issues including transfer of coal from RVUN coal blocks to
prospective buyers. Looking to the improvement in operational performance of KaTPP as well as
the turnaround in its financial performance, RVUN requested to GoR to review the decision of
Disinvestment of KaTPP plant of RVUN. The State Cabinet, GoR has decided to not to disinvest
the Kalisindh TPP (unit - 1 & 2) order dated 27.06.2019.
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
122
35.06 Disclosure as per by Indian Accounting Standard 24 “Related Party Disclosures” :
A.Names of the related party and description of relationship:
Standalone
B. Transactions with Related Parties
Particulars
1. Subsidairies
2018-19 2017-18
Settlement of Liability on behalf of Subsidiary 31,096.52 28,730.97
Material provided - -
Paid under finance arrangement 96.80 1,547.00
Repayment of Loan made by Subsidiary 35.80 476.09
Material received 4.81 4.69
Received from subsidary (spares) - 5.16
Income Received on behalf of Subsidiary - 1,125.74
( in Lakhs )`
S. No.
123
1
2
1DIN 03551794
2DIN 07649438
3DIN 01180608
4 DIN 00992744
5 DIN 05220511
6 DIN 03340556
7 DIN 03521006
8DIN 00004812
9DIN 00575501
10 DIN 08200730
11 DIN 02821192
12 DIN 07580613
13DIN 03319346
14DIN 07646220
15
PAN AGDPS2124E
1
2
3
4
1
2
Chhabra Power Ltd.
01.04.2018 to 08.03.2019
Subsidiary CompaniesDholpur Gas Power LtdGiral Lignite Power Ltd
Parsa Kente Collieries LtdJoint Venture
Rajasthan Collieries Ltd.
30.11.2018 to 31.03.2019
Sh. Nageen Kumar Kothari,
Chairman & Managing Director 1.04.2018 to 30.11.2018
Sh. Naresh Pal Gangwar,
IAS ,Director 26.12.2018 to 31.03.2019
Dr.Rajendra Prasad Singh,
Independent Director 01.04.2018 to 31.03.2019
Sh. Narendra Nath Misra,
Independent Director
Sh. Sanjay Malhotra,
IAS ,Director
Sh. KunjiLal Meena,
IAS,Director
Sh. Dr. Prithvi Raj,
IAS,Director
Sh. Praveen Gupta,
IAS,Director
Ms.Shakuntala Singh,
IAS,Director
Relationship
Sh. P. Ramesh,
IAS ,Chairman & Managing Director
Sh. Shyam Swaroop Meena,
Director (Technical)
Sh. Prahalad Sahai Arya,
Director (Projects)
Sh. SGVS Subrahmanyam,
Jt. Director (Corporate Affairs) -cum-
Company Secretary
26.12.2018 to 31.03.2019
04.01.2019 to 31.03.2019
1.04.2018 to 04.01.2019
14.08.2018 to 31.03.2019
01.04.2018 to 10.05.2018
01.04.2018 to 31.03.2019
01.04.2018 to 31.03.2019
Entities under control of same management
Ajmer Vidyut Vitran Nigam Limited
Jodhpur Vidyut Vitran Nigam Limited
Rajasthan Rajya Vidyut Prasaran Nigam Limited
01.04.2018 to 31.03.2019
Jaipur Vidyut Vitran Nigam Limited
Key Managerial Person / Directors
01.04.2018 to 31.03.2019
Rajasthan Rajya Vidyut karamchari Superannuation Fund Post Employment Benefit Plans TrustsRajasthan Rajya Vidyut karamchari Gratuity Fund
Ms.Arti Dogra,
IAS,DirectorDr.Murari Lal Gupta,
Director (Finance) & Chief Financial
Officer (CFO)
1.04.2018 to 26.12.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
123
Particulars 2018-19 2017-18
3. Transactions with post employment benefit plans
-Contribution made during the year 2,487.00 1,977.00
4. Compensation to Key Managerial Personnel
Short term employee benefits 140.29 107.79
Post employee benefits 2.11 15.54
Name of the Company Nature of transactionS.
No. 2018-19 2017-18
1 Jaipur Vidyut Vitran Nigam Limited Sale of Energy 5,35,431.97 4,66,705.62Services Received 5.27 1.12 Service Provided - 0.28
2 Ajmer Vidyut Vitran Nigam Limited Sale of Energy 3,67,045.02 3,33,718.02Services Received - 0.06 Service Provided - 0.38
3 Jodhpur Vidyut Vitran Nigam Limited Sale of Energy 4,38,365.11 3,78,549.52Service Received 8.13 6.46Service Provided 0.00 0.28
4 Rajasthan Rajya Vidyut Prasaran Service Provided 242.25 187.15 Nigam Limited Service Received 235.76 929.12
2. Joint Ventures
Particulars 2018-19 2017-18
PKCL/RCL
Service Received 1,15,490.98 90,212.77
Reimbursement of Expenses, Taxes & Duties Paid 4,60,882.43 2,00,134.05
Sale of Goods(Sale of Coal Rejects) 21,400.14 6,188.47
( in Lakhs )`
( in Lakhs )`
( in Lakhs )`
5. Transaction with the related parties under the control of the same government
Standalone
Particulars As at31.03.2018
As at31.03.2019
Amount Recoverable
-From Subsidiaries 1,50,746.52 1,20,276.99
-From Post Employment Benefit Plans 957.04 1,371.12
Amount Payable
-To Subsidiaries 1.74 1.75
-To Joint Ventures 98,613.10 20,458.10
-To Key Managerial Personnels 8.07 10.20
-To Post Employment Benefit Plans 45,393.66 32,965.98
C. Outstanding Balances with related parties
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
124
35.07 Disclosure as per Ind AS 17 'Leases' on company's leasehold land are as follows:-
35.08 Disclosure as per Ind AS 12' Income Taxes' Tax Losses carried forward
Standalone
Minimum
Lease Payment
Present Value
of Minimum
Lease Payment
Minimum Lease
Payment
Present Value
of Minimum
Lease Payment
50.57
44.50
50.57
44.50
202.26
130.68
202.26
130.68
4,449.76
195.99
4,399.19
195.99
4,702.59
371.17
4,652.02
371.17
4,331.42 - 4,280.85 -
371.17 371.17 371.17 371.17
Less than one year
Between one and five year
More than five years
PV of Minimum lease
Particulars
31-Mar-1831-Mar-19
less: Amounts representing Finance charges
Total minimum lease payments
( in Lakhs )`
31-Mar-19 Expiry Date 31-Mar-18 Expiry Date
7,67,065.78 N.A. 7,67,065.78 N.A. 68,012.17 31.03.2024 1,13,713.50 31.03.2024
Particulars
a)Unabsorbed Depreciation
b)Business loss
Unused Tax losses for which no deferred tax asset has been recognised
35.09 Disclosure as per Ind AS 27' Seperate financial statementsa) Investment in Subsidaries*
31-Mar-19 31-Mar-18
India 100% 100%Electricity
Generation Mercantile Basis
India 100% 100%Electricity
Generation Mercantile Basis
India 100% 100%Electricity
Generation Mercantile Basis
Giral Lignite Power Limited
Dholpur Gas Power Limited
Chhabra Power Limited
Place of Business/Country of
Incorporation
Principal activities
Method of accounting
Name of Entity
Ownership Interest
b) Investment in Joint Ventures*
31-Mar-19 31-Mar-18
India 26.00% 26.00% Mining Mercantile Basis
India 26.00% 26.00% Mining Mercantile Basis
Principal
activities
Method of
accounting
Place of Business/
Country of Incorporation
Parsa Kente Collieries Ltd
Rajasthan Collieries Ltd.
Name of Entity
Ownership Interest
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
125
35.10 Disclosure as per Indian Accounting Standards 107 , Financial Instruments - Disclosure
A Financial Instruments By Category
Financial Assets - Trade Receivables - - 18,40,955.48
Cash and Cash equivalents - - 16,899.38
Other Bank Balances - - 9,193.32
Loan - - 350.44
Bank deposits with more than 12 months maturity - - 154.48
Subvention Receivable From State Govt. 12,075.11 - -
Investments - - 10.00
Other Financial Assets - - 2,72,066.22
Total Financial Assets 12,075.11 - 21,39,629.32
Particulars
FVTOCI
31.03.2019
FVTPL Amortized cost
( in Lakhs )`
Standalone
Bonds 85,000.00
Term Loans - 39,20,185.86
Security Deposits from Contractors - 69.83
Finance lease obligation - 326.66
Loans Repayable on Demand - 33,226.28
Other Loans and Advance 82,096.61
Other Financial Liabilities - 7,26,336.54
Trade Payables - 2,20,142.75
Total Financial Liability - 50,67,384.55
Particulars
Financial Liability
31.03.2019
FVTPL Amortized cost
( in Lakhs )`
Financial Assets:
Financial Assets - Trade Receivables - - 12,49,189.65
Cash and Cash equivalents - - 9,906.27
Other Bank Balances - - 5,720.91
Loan - - 353.08
Bank deposits with more than 12 months maturity - - -
Subvention Receivable From State Govt. 13,973.57 - -
Investments - - 18,510.00
Other Financial Assets - - 1,13,663.03
Total Financial Assets 13,973.57 - 13,97,342.94
Particulars
Financial Assets FVTOCI
31.03.2018
FVTPL Amortized cost
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
126
Bonds - 85,000.00
Term Loans - 34,32,389.87
Security Deposits from Contractors - 615.31
Finance lease obligation 326.67
Loans Repayable on Demand - 11,133.15
Other Loans and Advances - 96,000.00
Other Financial Liabilities - 5,42,890.74
Trade Payables - 86,859.16
Total Financial Liability - 42,55,214.90
Particulars
Financial Liability
31.03.2018
FVTPL Amortized cost
( in Lakhs )`
Standalone
B.Details of defaults during the period of principal and interest
There were no defaults made of Principal and Interest to PFC, REC, Commercial Banks and other Financial Institutions and Lenders during the F.Y. 2018-19 and FY 2017-18.
C. Financial Risk Management
Market Risk
Market Risk mainly relates to the investment & deposits. There is no regular business of company for making
investment & deposits.However, work of W&M Section of the company is to manage the cash resources,
borrowings strategies and ensuring compliance of the same with the guidelines & directions of the Higher
Management.
Risk
Liquidity
risk
Market
risk, interest
rate risk
ManagementExposure arising from
Trade receivables, derivative
financialInstruments financial assets
measured at Amortised cost and
cash & cash equivalents
Credit
Risk
Credit limits, Escrow Cover, letters of credit and
diversification of bank deposits. Prefer nationalized
bank for deposit.
Availability of committed credit lines and borrowing
facilities
Rolling cash flows forecastBorrowing and other liabilities
Different kinds of loan arrangements with varied
terms (eg. Fixed, floating, rupee, foreign currency,etc.)& swaping of high cost debts into low cost debt.
Sensitivity analysis,
Cash Flow Analysis
Long-term Borrowings at
variable rates
Measurement
Credit ratings
Ageing analysis, Credit Ratings
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
127
Interest Rate Risk
ParticularsS.
No.31.03.201831.03.2019
Fixed rate borrowings
1 Unsecured Bonds 85,000.00 85,000.00
2 Loans from Banks 18.63 26.34
3 Loans from others 4,36,637.85 4,81,330.85
Total 5,21,656.48 5,66,357.19
Floating rate borrowings
1 Unsecured Bonds - -
2 Loans from Banks 6,61,666.33 4,67,500.00
3 Loans from others 32,48,525.80 27,61,400.73
Total 39,10,192.13 32,28,900.73
Grand Total 44,31,848.61 37,95,257.92
( in Lakhs )`
Credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligations
as agreed. The entire generation of power is sold to three DISCOMS which are state govt.
undertakings. To manage this, the Company based on the past experience periodically assesses
the minimum amount of escrow cover i.e. 55% of previous month Energy Bills have been
established to minimise the credit risk that will be recovered from Discoms and same is to be
reviewed from time to time as per position/ageing of the receivables accordingly at the level of
Higher Management.
Liquidity Risk
Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or another financial
asset. The company’s approach is to ensure liquidity of funds to meet its liabilities/obligations
when they are due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the company reputation. The Company has a separate section i.e.
W&M responsible for liquidity, funding etc. In addition, processes and policies related to such
risks are overseen by Higher Management. Management monitors the Company's net liquidity
position through rolling forecasts on the basis of expected cash flows.
D. The following are the contractual maturaties of financial liabilities based on
contractual cash flows:
Standalone
Unsecured Bonds - - - 85,000.00 85,000.00
Loans form banks 1,78,977.64 2,26,528.95 2,56,159.75 - 6,61,666.34
Loans form others 2,47,685.11 2,84,662.11 10,33,190.89 21,19,644.16 36,85,182.27
Trade and other Payables 6,01,913.16 54.55 145.96 195.99 6,02,309.66
Contractual maturities offinancial liabilities Less than
1 year1-2 years 2-5 years
Contractual cash flows
more than 5Years
Total
( in Lakhs )` 31.03.2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
128Standalone
Unsecured Bonds - - - 85,000.00 85,000.00
Loans form banks 44,904.67 1,14,512.91 73,745.66 18.97 2,33,182.21
Loans form others 1,90,508.20 1,43,206.23 4,50,375.87 14,87,083.58 22,71,173.88
Trade and other Payables 4,47,881.86 591.87 154.12 195.98 4,48,823.83
Contractual maturities offinancial liabilities Less than
1 year1-2 years 2-5 years
Contractual cash flows
more than 5Years
Total
( in Lakhs )` 31.03.2018
E. The Company has access to the following undrawn facilities at the end of reporting period
Particulars31.03.201831.03.2019
( in Lakhs )`
Floating Rate Borrowings
Loans from Banks - 62,500.00
Loans from others 2,36,656.92 33,287.69
Particulars 31.03. 9201 31.03.2018
Total Debt 45,21,045.83 38,54,728.19
Equity 5,68,514.16 5,24,383.04
Debt Equity Ratio (No. of times) 7.95 7.35
35.11 RVUNL is engaged in the generation of electricity and selling thereof to the Distribution Companies. Generation of electricity is one and single product.
Disclosure requirement as per Ind AS 108 ' Operating Segment':-
a) The company derives revenue from transactions with a single external customer amounting to 10% or more.
b) The aggregate amount of sale to these customers are `14,83,915.52 Lakhs( P.Y. ̀ 13,16,385.32 Lakhs).
35.12 Disclosure pursuant to Ind AS 113 - Fair Value Measurement
Fair Value Hierarchy:
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are:-
(a) recognised and measured at fair value and
(b) measured at amortised cost and for which fair values are disclosed in financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table:
( in Lakhs )`
F. Capital ManagementNote on Capital Management: For the purpose of Company's Capital Management , Capital includes issued equity share capital ,State Government guranteed, non- convertible redeemable Bonds and borrowings from various financial institutions . The primary objective of Company's Capital Management is to maximize shareholder's value and to maintain an appropriate capital structure of debt and equity. The company manages it's capital structure and makes adjustments in the light of changes in economic environment and the requirements of financial covenants.
The company manages it's capital using Debt to Equity Ratio which is Total Debt/Total Capital
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
129
Financial assets and liabilities measured at fair valueAs at 31 March 2019
Financial Assets:
Subvention receivable - - 12,075.11
Level 1 Level 2 Level 3
( in Lakhs )`
Financial assets and liabilities measured at fair valueAs at 31 March 2018
Financial Assets:
Subvention receivable - - 13,973.57
Level 1 Level 2 Level 3
( in Lakhs )`
Fair Values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
Fair value of financial assets and liabilities measured at amortised cost
1) The carrying amount of bonds is equivalent to their fair value .
2) The fair values for loans,borrowings and non current deposits are calculated based on cash flows discounted at current discount rate. Fair values confer with their respective amortised costs.
3) The carrying amounts of trade and other receivables, trade payable,cash and cash equivalents and other financial assets and liabilities are considered as their fair value due to short term nature.
35.13 Disclosure as per Ind AS 115, 'Revenue from contracts with customers'
I. Nature of goods and services
The revenue of the Company comprises of income from energy sales. The following is a description of the principal activities:
(a) Revenue from energy sales
The major revenue.of the Company comes from energy sales. The Company sells electricity to bulk customers i.e. electricity utilities owned by Rajasthan State Government. Sale of electricity is generally made pursuant to long-term Power Purchase Agreements (PPAs) entered into with the beneficiaries. Below are the details of nature, timing of satisfaction of performance obligations and significant payment terms under contracts for energy sales:
Product/
Service significant payment terms
Energy sales The Company recognises revenue from contracts for energy sales over time as the customers simultaneously receive and consume the benefits provided by the Company. The tariff for computing revenue from energy sales is determined in terms of RERC Regulations as notified from time to time. The amount of revenue recognised for energy sales is adjusted for variable consideration, wherever applicable, which are estimated based on the historical data available with the Company. The amounts are billed on a monthly basis and are payable as per the RERC tariff Regulations.
II Disaggregation of Revenue
In the following table, revenue is disaggregated by type of product and services and timing of revenue recognition:
Nature, timing of satisfaction of performance obligations and
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
130
Particulars
Particulars
Timing of Revenue Recognition
Point of time - -
Over a period of time 14,48,744.93 12,78,410.99
Total 14,48,744.93 12,78,410.99
* The company has applied Ind AS 115 using Cumulative Effect Method. Under this method the comparative information is not restated.
III Reconciliation of revenue recognized with contract price:
Contract Price 14,48,744.93
Adjustments for Rebates -
Revenue Recognized 14,48,744.93
IV Contract Balances
Contract assets are recognized when there is excess of revenue earned over billings on contracts. Contract assets are transferred to unbilled revenue when there is unconditional right to receive cash and only passage of time is required, as per contractual terms. The contract liabilities primarily relate to the advance consideration received from the customers which are referred as 'advance from customers.
The following table provides infirmation about trade receivables, unbilled revenue and advance from customers:
(` )in Lakh
(` )in Lakh
st31 March, 2019
st31 March, 2018
st Asat31 March, 2019
Generation of Energy
ParticularsAs at 1st April 2018**As at 31st March, 2019
Trade Receivables 18,40,955.48 - 11,24,059.04 -
Unbilled Revenue 1,54,497.24 - 1,37,379.35 -
Advance from Customers - - - -
** The company has applied Ind AS 115 using cumulative effect method. Under this method comparative figures are not restated.
The amount of revenue recognized in FY 2018-19 from performance obligations satisfied (or partially satisfied) in previous periods, mainly due to change in transaction prices is ̀ Nil.
There have been no significant changes in unbilled revenue and advances from customers during the year ended 31st March, 2019.
V. Transaction price allocated to the remaining performance obligations
Performance obligations related to sale of energy: Revenue from sale of energy is accounted for based on tariff rates approved by the RERC (except items indicated as provisional) as modified by the orders of Appellate Tribunal for Electricity to the extent applicable. In case of power stations, where the tariff rates are yet to be approved/items indicated provisional by the RERC in their orders, provisional rates are adopted considering the applicable RERC Tariff Regulations. Revenue from sale of energy is recognized once the electricity has been delivered to the beneficiary and is measured through a regular review of usage meters. Beneficiaries are billed on a periodic and regular basis. Therefore, transaction price to be allocated to remaining performance obligations cannot be determined reliably for the entire duration of the contract.
( in Lakhs )`
Current CurrentNon Current Non Current
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
131Standalone
Current Year Previous Year
Not Applicable Not Applicable
6,367.35 5,707.35
Particulars
Licensed capacity (MW)
Installed Capacity (MW)
35.19 a) Quantitative information in respect of Generation and Sale of Electricity:
(in Million Unit)
ParticularsAux.
ConsumptionUnits
GeneratedNet Units
Sold
A. Commercial Period
Coal 30,644.35 2,795.44 27,848.92 (25,120.22) (2,368.39) (22,751.83)
Gas 1,018.98 61.36 957.62 (1,696.85) (95.26) (1,601.59)
Hydel 121.79 1.34 120.46 (191.45) (1.49) (189.96)
Sub-Total (A) 31,785.13 2,858.13 28,927.00 (27,008.52) (2,465.14) (24,543.38)
B. Pre-commercial Period 1,016.53 102.96 913.56 (1,378.85) (146.00) (1,232.85)
GRAND TOTAL (A+B) 32,801.66 2,961.10 29,840.56 (28,387.37) (2,611.14) (25,776.23)
(Figures given in brackets are of previous year)
b) Quantitative information in respect of Sale of Fly Ash:
(QTY in MT)
31.03.2019 31.03.2018
31,45,534.00 44,03,370.00
VI Practical expedients applied as per Ind AS 115:.
a. The company has not disclosed information about remaining performance obligations that have original expected duration of one year or less and where the revenue recognised corresponds directly with the value to the customer of the entity's performance completed to date.
b. The Company does not /expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company has not adjusted any of the transaction prices for the time value of money.
VII The Company has not incurred any incremental costs of obtaining contracts with a customer and therefore, not recognised an asset for such costs.
VIII The Company adopted Ind AS 115 using the cumulative effect method and therefore the comparatives have not been restated and continues to be reported as per Ind AS 11 and Ind AS 18. On account of adoption of Ind AS 115, no cumulative adjustment was required as at 1 April 2018, Further, no financial statement line items are affected in the current year as a result of applying Ind AS 115 as compared to Ind AS 11 and Ind AS 18.
35.14 a) No earning in foreign exchange was accrued during the year.
b) The Foreign Exchange outgo during the year was ̀ 2,389.48 Lakhs (P.Y ̀ 9197.50 Lakhs)
35.15 The Internal Audit of the company is conducted by the Company’s own Internal Audit wing.
35.16 The Trade Payables balances are subject to reconciliation and confirmation.
35.17 As required by the Indian Accounting Standard (Ind AS-36) “Impairment of Assets” issued by the Ministry of Corporate Affairs, the company has carried out the assessment of impairment of assets. There are no external/internal indicators which lead to any impairment of assets during the year.
35.18 Licensed & installed capacities :-
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
132
35.20 Annual disclosure as per requirement of Listing Agreement for Debt Securities
With respect to Parent, Subsidiary and Associate Companies:
Standalone
S. No.
Investments by the Loanee (Borrower) in the
shares of parent company and subsidiary
company, when the company has made a loan oradvance in the nature of Loan
c)
Particulars Remarks
a) Particulars of loans and advances in the nature ofloan to Subsidiary, Associates
Loan to GLPL - Subsidiary- 1, Lakhs ` 50,746.52
Loans and advances in the nature of loans wherethere is-
i) no repayment schedule or repayment beyondseven years
ii) no interest or interest below section 186 of theCompanies Act, 2013
There is no repayment schedule in case of loans andadvance given to GLPL - Subsidiary
Section 186 of the Companies Act, 2013 is notapplicable on Infrastructure Companies.
b)
(P.Y. 1,20,276.99 Lakhs)`
` NIL
35.21 Assets and liabilities are presented as current or non-current as per criteria set out in Schedule III
of The Companies Act, 2013. Based on the nature of the products, power generating process and
realisation, the company has ascertained its operating cycle of twelve months. Accordingly twelve
months period has been considered for the purpose of classification of assets and liabilities into
current and non-current.
35.22 Disclosure as per Ind AS 1 'Presentation of financial statements'
Changes in significant accounting policies:
During the year, following changes to the accounting policies have been made:
a) Policy B.12 'Revenue from Operations' have been changed for improved disclosures and to
comply with disclosures related to Ind AS 115.
There is no impact on the financial statements due to the above changes, however, the policy
numbers have been rearranged in the current year as required.
35.23 Disclosure as per Ind AS 8 -'Accounting Policies, Changes in Accounting Estimates and
Errors' and Ind AS 1 'Presentation of financial statements'
In Accordance with Ind AS 8 -'Accounting Policies, Changes in Accounting Estimates and Errors'
and Ind AS 1 'Presentation of financial statements', the Company has retrospectively reclassified its
Balance Sheet as at 31st March, 2018 and 1st April, 2017 (beginning of the precedding period) for
the reasons as stated in note below. Reconciliation of financial statement line items which are
retrospectively reclassified are as under:
Reconciliation of the restated items of the Balance Sheet as at 31st March 2018 and 1st April
2017
Notes:-
a) Trade Receivables / Other Current Financial Assets
The company inadvertently classified certain amounts representing the 'Unbilled Revenue' (in
respect of energy charges related to a financial year but which have been billed in the subsequent
As previously
reportedAdjustments As Restated As previously reported Adjustments As Restated
Trade
Receivables
9 12,49,189.65 (1,25,130.61)
11,24,059.04 11,00,094.52 (1,19,321.16)
9,80,773.36
Other Current
Financial Assets
12 1,15,561.49 1,25,130.61 2,40,692.10 1,06,897.42 1,19,321.16 2,26,218.58
31st March 2018 1st April 2017
Particulars Note No
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
133
financial year) under the head 'Trade Receivables'. During the year, the company re-classified the
same and shifted the said amounts from 'Trade Receivables' to 'Unbilled Revenue' under the head
'Current Financial Assets - Others'. Accordingly, Rs. 1,25,130.61 Lakhs as at 31st March, 2018
and Rs. 1,19,321.16 Lakhs as at 1st April, 2017 has been re-classified from 'Trade Receivables' to
'Current Financial Assets - Others'.
35.24 Disclosure as per Ind AS 8 'Accounting Policies,Changes in Accounting Estimates and Errors'
Recent accounting pronouncements: Standards issued but not yet effective:
IndAS 116 Leases:
On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind AS 116 will
replace the existing leases Standard, Ind AS 17 Leases, and related Interpretations. The Standard
sets out the principles for the recognition, measurement, presentation and disclosure of leases for
both parties to a contract i.e., the lessee and the lessor. Ind AS 116 introduces a single lessee
accounting model and requires a lessee to recognize assets and liabilities for all leases with a term
of more than twelve months, unless the underlying asset is of low value. Currently, operating lease
expenses are charged to the statement of Profit & Loss. The Standard also contains enhanced
disclosure requirements for lessees. Ind AS 116 substantially carries forward the lessor accounting
requirements in Ind AS 17. The effective date for adoption of Ind AS 116 is annual periods beginning
on or after April 1, 2019. The standard permits two possible methods of transition:
? Full retrospective – Retrospectively to each prior period presented applying Ind AS 8
Accounting Policies, Changes in Accounting Estimates and Errors.
?Modified retrospective – Retrospectively, with the cumulative effect of initially applying the
Standard recognized at the date of initial application.
Under modified retrospective approach, the lessee records the lease liability as the present value of
the remaining lease payments, discounted at the incremental borrowing rate and the right of use
asset either as:
• Its carrying amount as if the standard had been applied since the commencement date, but
discounted at lessee’s incremental borrowing rate at the date of initial application or
•An amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease
payments related to that lease recognized under IndAS 17 immediately before the date of initial
application.
Certain practical expedients are available under both the methods.
On completion of evaluation of the effect of adoption of IndAS116,the Company is proposing to use
the ‘Modified Retrospective Approach’ for transitioning to IndAS 116, and take the cumulative
adjustment to retained earnings, on the date of initial application(April1,2019). Accordingly,
comparatives for the year ended March 31, 2019 will not be retrospectively adjusted. The Company
has elected certain available practical expedients on transition.
The effect of adoption as on transition date would be insignificant.
Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments:
On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 12 Appendix C, Uncertainty
over Income Tax Treatments which is to be applied while performing the determination of taxable
profit (or loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is
uncertainty over income tax treatments under Ind AS 12. According to the appendix, companies
need to determine the probability of the relevant tax authority accepting each tax treatment, or
group of tax treatments, that the companies have used or plan to use in their income tax filing
which has to be considered to compute the most likely amount or the expected value of the tax
treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax
credits and tax rates.
The standard permits two possible methods of transition –
i) Full retrospective approach – Under this approach, Appendix C will be applied retrospectively to
each prior reporting period presented in accordance with Ind AS 8 – Accounting Policies, Changes
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
134
in Accounting Estimates and Errors, without using hindsight, and
ii) Retrospectively with cumulative effect of initially applying Appendix C recognized by adjusting
equity on initial application, without adjusting comparatives.The effective date for adoption of Ind AS
12 Appendix C is annual periods beginning on or after April 1, 2019. The Company will adopt the
standard on April 1, 2019 and has decided to adjust the cumulative effect in equity on the date of
initial application i.e. April 1, 2019 without adjusting comparatives.The effect on adoption of Ind AS
12 Appendix C would be insignificant in the standalone financial statements.
Amendment to Ind AS 12 – Income taxes:
On March 30, 2019, Ministry of Corporate Affairs issued amendments to the guidance in Ind AS 12,
‘Income Taxes’, in connection with accounting for dividend distribution taxes. The amendment
clarifies that an entity shall recognise the income tax consequences of dividends in profit or loss,
other comprehensive income or equity according to where the entity originally recognised those past
transactions or events. Effective date for application of this amendment is annual period beginning
on or after April 1, 2019. The Company is currently evaluating the effect of this amendment on the
standalone financial statements.
Amendment to Ind AS 19 – Plan amendment, curtailment or settlement-
On March 30, 2019, Ministry of Corporate Affairs issued amendments to Ind AS 19, ‘Employee
Benefits’, in connection with accounting for plan amendments, curtailments and settlements.
The amendments require an entity:
• to use updated assumptions to determine current service cost and net interest for the remainder of
the period after a plan amendment, curtailment or settlement; and
• to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction
in a surplus, even if that surplus was not previously recognised because of the impact of the asset
ceiling.
Effective date for application of this amendment is annual period beginning on or after April 1, 2019.
The Company does not have any impact on account of this amendment.
Amendment to Ind AS 23 Borrowing Cost
The amendments to the guidance in Ind AS- 23 Borrowing Cost clarifies the following-
a) while computing the capitalisation rate for the funds borrowed generally, borrowing cost applicable
to borrowings meet specifically for obtaining the qualified asset should be excluded, only until the
asset is ready for its intended use or sale.
b) Borrowing Cost (related to specfic borrowing) that remains outstanding after the related qualifying
assset is ready for its intended use or sale would subsequently be considered as part of the general
borrowing cost.
Amendment to Ind AS 28 Investment in Associates & Joint Venture
The amendments to the guidance in Ind AS- 28 Investment in Associates & Joint Venture clarifies
that an entity applies Ind As 109 Financial instrument to long term interest in an associate or joint
venture that form part of the net investment in joint venture or associate but to which the equity
method is not applied.
Amendment to Ind AS 109 Financial Instrument
The amendment relates to the existing requirement in Ind As 109 Financial Instruments regarding
termination rights in order to allow measurement at amortised cost (or depending on the business
model, at Fair Value through Other Comprehensive Income) even in the case of negative compensatin
payments.
The company is evaluating the requirements of above amendments and the effects on the financial
statements.
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
135
35.25 Information in respect of micro and small enterprises as at 31 March 2019 as required by
Micro, Small and Medium Entereprises Development Act, 2006
Particulars 31-Mar-19 31-Mar-18
a) Amount remaining unpaid to any supplier:
Principal Amount - -
Interest due thereon
b) amount of interest paid in terms of Section 16 of MSMED Act
along with the amount paid to the suppliers beyond the - -
appointed day.
c) Amount of interest due and payable for the period of delay
in making payment (which have been paid but beyond the - -
appointed day during the year) but without adding the interest
specified under the MSMED Act.
d) Amount of interest accrued and remaining unpaid - -
e) Amount of futher interest remaining due and payable even in
the succeeding years, until such date when the interest due as
above are actually paid to the small entereprises, for the - -
purpose of disallowances as a deductible expenditure under
Section 23 of MSMED Act.
35.26 Figures of the current & previous year have been rounded off to nearest Lakhs.
For and on Behalf of the Board of Directors As per our separate report of even date
(P. Ramesh)Chairman & Managing Director
DIN : 03551794
( )Director
DIN : 03319346
S.S. Meena B.L. Ajmera & Co.Chartered Accountants
FRN-001100C
(Y.K. Upadhyay)Chief Controller of Accounts
(SGVS Subrahmanyam)Jt. Dir. (Corp. Aff.)-cum-
Company SecretaryM.No. FCS-3962
(Venkatesan Chandra Mouli)(Partner)
M.No.: 010054
Place : JaipurDate : 12-09-2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
136
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA
UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE
FINANCIAL STATEMENTS OF RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM
LIMITED FOR THE YEAR ENDED 31MARCH 2019.
The preparation of financial statements of Rajasthan Rajya Vidyut Utpadan Nigam Limited for the
year ended 31 March 2019 in accordance with the financial reporting framework prescribed under
the companies Act,2013 (Act) is the responsibility of the management of the company. The
Statutory Auditors appointed by the Comptroller and Auditor General of India under section
139(5) of the Act are 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 12 September 2019.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary
audit of the financial statements of Rajasthan Rajya Vidyut Utpadan Nigam Limited for the year
ended 31 March 2019 under section 143(6)(a) of the Act. 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 record.
Based on my supplementary audit, I would like to highlight the following significant matters under
section 143(6)(b) of the Act which have come to my attention and which in my view are necessary
for enabling a better understanding of the financial statements and the related audit report:
A. Comments on Profitability
Statement of Profit & Loss
(I) Income
Revenue from Operations (Note No.-25) - ` 14,487.45 Crore
The above is understated by ` 20.70 crore due to excess allocation and adustment in
Capital Work in Progress of late payment surcharge on infirm power in respect of Unit 5
and 6 of the Supercritical Thermal Power Plant, Chhabra. This has resulted in
understatement of Capital Work in Progress by ̀ 20.70 crore. Consequently, Profit has
been understated to the same extent.
(II) Expenses
(i) Generation and other Direct Expenses (Note No.27) ̀ 8,738.20 crore
The above is understated by ̀ 5.64 crore due to non-provision of liability towards track
access charges payable to M/s Sarguja Rail Corridor Private Limited (SRCPL) for a
shortfall of coal in the off-take quantity for the year 2015-16 which has been paid on 15
May, 2019 on the basis of decision (24 April, 2019) taken by the whole time directors of
the company. this has resulted in understatement of Trade Payables by ` 5.64 crore.
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
137
Consequently, Profit has been overstated to the same extent.
(ii) Employee Benefits Expenses (Note No. 31) ̀ 1,319.31 crore
Clause 22 (4) of the Rajasthan Electricity Regulatory Commission (Terms and
Condition for Determination of Tariff) Regulations-2014 stipulates that depreciation
shall be calculated annually based on Straight Lime Method (SLM) at the rate 5.28%
p.a. for Plant and Machinery in generating station. Provided that the remaining
depreciable value as on 31st March of the year closing after a period of 12 years from
date of commercial operation shall be spread over the balance useful life of the assets.
Further, clause 2(69) provides that useful life of Coal/Lignite based thermal
generating station shall be 25 years. However, after the period of 12 years from the date
of commercial operation (31.03.2017), the company charged depreciation of ` 28.18
crore for the period 2017-19 on remaining depreciable value of Property, Plant and
Equipment of Kota Thermal Power Station, stage IV as per Straight Lime Method
instead of spreading it over the balance useful life (13 years) of the assets. this has
resulted in overstatement of Depreciation and Amortization Expenses by ̀ 14.09 crore
(depreciation for the year 2018-19) and Other Equity by ̀ 14.09 crore (depreciation for
the year 2017-18). Consequently Property, Plant & Equipment and Profit has been
understated by ̀ 28.18 crore and ̀ 14.09 crore respectively.
(iii) Finance Costs (Note No. 30) ̀ 3,098.23 crore
The above is understated by `16.51 crore due to non-provision of liability towards
short paid guarantee commission ( ̀ 15.67 crore) to the State Government for the year
2018-19 and penal interest (` 0.84 crore) thereon. This has resulted in understatement
of Other Current Liabilities and overstatement of Profit by ̀ 16.51 crore.
B. General
Other Non-Current Assets includes advance of ` 24.85 crore given to the
suppliers/contractors for capital goods in respect of Suratgarh Thermal Power Station
which is pending for adjustment since unbundling of Rajasthan State Electricity Board
(RSEB). However, the company has no records of the same. In the absence of relevant
records, the veracity of advance of ` 24.85 crore reflected in the books of accounts could
not be vouchsafed.
Place: Jaipur
Date: 03.12.2019
Standalone
For and on the behalf of
The Comptroller and Auditor General of India
(Anadi Misra)
Accountant General
(Economic & Revenue Sector Audit)
Rajasthan, Jaipur
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
138
MANAGEMENT RESPONSE TO THE COMPTROLLER AND AUDITOR GENERAL OF INDIA
UNDER SECTION 143(6)(b) OF THE COMPANIES ACT,2013 ON THE FINANCIAL
STATEMENTS OF RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED FOR THE YEAR
ENDED 31 MARCH 2019.
A. Comments on Profitability
Statement of Profit & Loss
(I) Income
Revenue from Operations (Note No.-25) - ` 14,487.45 Crore
Observation noted. Necessary adjustment/rectification shall be made in the accounts of
F.Y. 2019-20.
(II) Expenses
(i) Generation and Other Direct Expenses (Note No. 27) ̀ 8,738.20 crore
Observation noted. Necessary care shall be taken in future.
(ii) Depreciation and Amortization Expenses (Note No. 31) ̀ 1,319.31 crore
It was an inadvertent error. Necessary rectification has been made in the accounts of
F.Y. 2019-20.
(iii) Finance Costs (Note No. 30) ̀ 3,098.23 crore
Observation noted. Necessary adjustment/rectification shall be made in the accounts
of F.Y. 2019-20.
B. General
Necessary directions have been issued to the respective unit officers to liquidate/adjust/
write off the above during the current financial year.
Standalone
CONSOLIDATED
FINANCIAL STATEMENT
2018-19
RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.(A Government of Rajasthan Undertaking)
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
141
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF
RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
Report on the Consolidated Financial Statements
Opinion
We have audited the accompanying Consolidated Ind AS financial statements of Rajasthan Rajya
Vidyut Utpadan Nigam Limited (hereinafter referred to as “the Holding Company”)and its
subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), its
associates and jointly controlled entities, comprising of the Consolidated Balance Sheet as at 31
March, 2019, the Consolidated Statement of Profit and Loss (including other comprehensive
income), the Consolidated Cash Flow Statement, Consolidated Statement of Changes in Equity for
the year then ended, and a summary of the significant accounting policies and other explanatory
information (hereinafter referred to as “the consolidated Ind AS financial statements”).
In our opinion and to the best of our information and according to the explanations given to us and
based on the consideration of reports of other auditors on separate financial statements and on
other financial information of the subsidiaries, associates and jointly controlled entities, the
aforesaid consolidated Ind AS financial statements give the information required by the
Companies Act, 2013 (the “Act”) in the manner so required except for the effects of the matters
described in Para of Basis for Qualified opinion paragraph above give a true and fair view in
conformity with Indian Accounting Standards prescribed under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015, as amended (“Ind AS”) and other
accounting principles generally accepted in India, of the consolidated state of affairs of the Group
as at March 31, 2019, the consolidated profit, consolidated total comprehensive income,
consolidated changes in equity and its consolidated cash flows for the year ended on that date.
Basis for Qualified Opinion
Refer “Annexure I” (which forms an integral part of this report) which consist of matter relates to
qualification and reservations of which effects is not ascertainable on financial statements that
constituted the basis for modifying our opinion.
We draw your attention to the qualification to the audit opinion of the financial statements of Giral
Lignite Power Ltd., a subsidiary of the holding company issued by an independent firm of
Chartered Accountants vide its report dated 07, August 2019 reproduced by us in Annexure I-A.
We conducted our audit of the Consolidated financial statements in accordance with the
Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under
those Standards are further described in the Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI)
together with the independence requirements that are relevant to our audit of the Consolidated
financial statements under the provisions of the Act and the Rules made thereunder, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s
Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the consolidated financial statements.
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
142
Emphasis of Matter
We draw attention to the following matters in the Notes to the consolidated financial statements:
a) Note 1.8 of consolidated financial statement, that RRVUNL had acquired 557.14 Bigha
of land for Dholpur Gas Power Project from “M/s RPG Enterprise” through Govt. of
Rajasthan. Out of which, 200.01 Bigha of Land is not yet allotted in favour of RRVUNL as
it is appearing as forest land in the revenue records. Also, no title deed is executed in
favour of Company.
b) Attention is drawn to Note No. 6 of Financial Statements, where it has been stated that
the deferred tax assets pursuant to Ind. AS 12 ‘income taxes’ has not been recognised as
there is no virtual certainty supported by convincing evidence that there shall be any
future tax liability despite the fact that the company is continuously reporting profit for
the last three years and no evidence is available to support that there will not be any
future tax liability.
c) Note 7.1 that the Company has taken certain assets on lease. Out of these assets, the
ownership of leased assets of the following entities have not been transferred in the
name of the Company after expiry of lease agreements due to pending litigation in court
or in absence of power of attorney. The security deposit equivalent to residual value of
the lease assets have already been deposited with lessors except M/s ICICI Ltd. for
which payment will be made. The details are as under:
(` in Lacs)
S.No. Name of Lessor Lease Value Residual value
1 M/s ICICI ltd. 8,400.00 84.00
2 M/s Indo Nissan Oxo Chemical Ltd. 623.34 155.84
Total 9,023.34 239.84
d) Note 26.1 that Revenue from sale of power consist of late payment surcharge towards
delayed payment by DISCOMs amounting to `1,92,433.19 Lakhs which requires to
be accounted as “Other Income” instead of “Revenue from Sale of Power” as a
consistent practice in accordance with RERC Tariff Regulations.
Our opinion is not modified in respect of these matters.
Other Matters
1) We did not audit the financial statements/ financial information of the following
subsidiaries whose financial statements reflect the details given below of total assets
as at 31 March 2019, total revenues and net cash flows for the year ended on that date
to the extent to which they are reflected in the Consolidated Ind AS financial
statements:
(` in Lacs)
Name of the Subsidiaries Total Assets Total Revenues Net Cash
Inflows/(Outflows)
Giral Lignite Power Ltd. 1,03,155.65 (4888.15) 30.52
Dholpur Power Ltd. 1.26 0.01 (0.03)
Chhabra Power Ltd. 1.35 0.02 (0.03)
Total 1,03,158.26 (4,888.12) 38.11
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
143
The consolidated Ind AS financial statements also include the Group’s share of net
profit/loss (including Other Comprehensive Income) for the year ended 31 March 2019 as
considered in the consolidated Ind AS financial statements in respect of following jointly
controlled entities whose financial statements/ financial information have not been audited
by us:
(` in Lacs)
Name of the Joint Ventures Group’s share net
profit/(loss)
Parsa Kente Collieries Ltd. 423.54
Rajasthan Collieries Ltd. (7.02)
Total 416.52
These financial statements/ financial information of subsidiaries and joint ventures have
been audited by other auditors whose reports have been furnished to us by the Holding
Company’s Management and our opinion on the consolidated Ind AS financial statements,
in so far as it relates to the amounts and disclosures included in respect of these subsidiaries
and jointly controlled entities, and our report in terms of sub-section (3) of Section 143 of the
Act, in so far as it relates to the aforesaid subsidiaries and jointly controlled entities are
based solely on the reports of the other auditors after considering the requirement of
Standard on Auditing (SA 600) on ‘Using the work of Another Auditor’ including materiality.
Our opinion on the consolidated Ind AS financial statements, and our report on Other Legal and
Regulatory Requirements below, is not modified in respect of the above matters with respect to our
reliance on the work done and the reports of the other auditors and the financial statements
certified by the management.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the consolidated financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. We have
determined that there are no key audit matters to be communicated in our report.
Information Other than the Consolidated Financial Statements and Auditor’s Report
Thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The
other information comprises the information included in the Management Discussion and
Analysis, Board’s Report including Annexures to Board’s Report, Business Responsibility Report,
Corporate Governance and Shareholder’s Information, but does not include the consolidated
financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
144
other information, we are required to report that fact. We have nothing to report in this regard.
Management’s Responsibility for the Consolidated Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act
with respect to the preparation of these consolidated financial statements that give a true and fair
view of the financial position, financial performance, total comprehensive income, changes in
equity and cash flows of the Company in accordance with the Ind AS and other accounting
principles generally accepted in India. 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
consolidated financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either intends
to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial
statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the
Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of such
controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
145
• Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the consolidated financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a reasonably
knowledgeable user of the financial statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the
results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial
statements.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the consolidated financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and except for the possible effect of the matters described in basis for
Qualified Opinion paragraph, obtained all the information and explanations which to
the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, except for the possible effect of the matters described in basis for
Qualified Opinion paragraph, proper books of account as required by law have been kept
by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by
this Report are in agreement with the relevant books of account.
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
146
d) Except for the possible effect of the matters described in basis for Qualified Opinion
paragraph, in our opinion, the aforesaid consolidated financial statements comply
with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
e) Being a Government Company, pursuant to notification No. GSR 463(E) dated 5th June
2015 issued by the Ministry of Corporate Affairs, Government of India, Provision of sub-
section (2) of Section 164 of the Companies Act 2013 are not applicable to the company.
f) 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 II”. Our report expresses an unmodified opinion on the
adequacy and operating effectiveness of the Company’s internal financial controls over
financial reporting.
g) 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, as amended 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 part of pending litigations on its
financial positions in its Consolidated Ind AS financial statements. Refer Note 36
to the Consolidated Ind AS financial statements.
ii. The Company has made provision, as required under the applicable law or
accounting standards, for material foreseeable losses, if any, on long-term
contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
For B. L. Ajmera & Co.
Chartered Accountants
FRN : 001100C
(Venkatesan Chandra Mouli)
Partner Mem. No. : 010054
UDIN : 19010054AAAABM5823
Place : Jaipur
Date : September 12, 2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
147
ANNEXURE I TO INDEPENDENT AUDITORS’ REPORT(Referred to in “Basis for Qualified Opinion paragraph in the Independent AUDITORSReport of even date on account of RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED
stfor the year ended on 31 March, 2019)
1. Fly Ash Utilization Fund
As per the gazette notification dated 3rd November 2009 issued by Ministry of Environment and Forests (MoEF), Government of India, the amounts collected from sale of fly ash and fly ash based products shall be kept in a separate account head and be utilized only for development of infrastructure of facilities, promotion and facilitation activities for use of fly ash until 100% flyash utilization level is achieved. In compliance with the said notification, the company has created a Fly Ash Utilization Fund in the books of accounts to which the entire sale proceeds of fly ash including interest earned on the fund is transferred.
The company has accumulated balance of Rs. 275.00 crore in fly ash utilization fund as on 31.03.2019 and the company has utilized accumulated balance in such fund for its own affairs which is violation of notification dated 3rd November 2009 issued by MoEF, Government of India.
2. PKCL Price Escalation Dispute
As per Note No. 35.01 Hon’ble Supreme Court vide order dated 27.05.2019 ordered the claim of Price Adjustment/Escalation in favour of M/s PKCL.
M/s PKCL has claimed an amount of Rs. 314.57 Crores towards Price escalation and an amount of Rs. 88.05 Crores towards interest on the basis of Hon’ble Supreme Court Judgment. RVUNL filed Review Petition on dated 25.06.2019 in Hon’ble Supreme Court of India against the judgment. Hon’ble Supreme Court of India in its judgment dated 24.07.2019 dismissed the review petition.
The Company has not made any provision for such liability on the contention that the company is exploring the further legal action in the matter and the same amount is recoverable as expenses from Discoms as per RERC tariff Regulations. We are unable to comment on the contention of the Company as the Company has not obtained legal opinion in the matter for further legal action. The recoverability of such amount from Discoms is also subject to filing of the claim as per RERC tariff Regulations.
Non provision of claim resulted in understatement of liability and overstatement of profit amounting to Rs. 402.62 crores.
3. Leases
The company has applied the Ind AS-17 “Leases” on the basis of materiality concept however materiality has not been defined in Ind AS-17. We cannot determine the impact of non application of Ind AS- 17 on other leases which have been considered immaterial by the management of the company as the required details are not available.
4. Receivables from 100% Subsidiary GIRAL LIGNITE POWER LTD.
Receivable from 100% Subsidiary Company M/s Giral Lignite Power Ltd amounting to Rs 1,507.46 Crores have been impaired retrospectively by providing expected credit loss as per Ind AS 109 as the net worth of the subsidiary company is fully eroded. The provision of impairment has been made of Rs. 927.85 crore till 31.03.2019 (provision till 31.03.2018 Rs. 655.22 Crores).
Since the subsidiary Company has not finalised any revival or disinvestment plan, the provision made on the basis of expected credit loss where date of repayment cannot be determined is estimation without any basis, therefore we are unable to comment on the adequacy of provision made by the company.
5. Property Plant And Equipment, Capital Work In Progress (CWIP) And Depreciation:
Non Current assets- Others disclosed in Note No.7 includes Advance to Suppliers & Contractors for Capital goods and Other current financial liabilities disclosed in Note No. 22 includes Other Deposits consist of certain old and carried forward balances which are pending
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
148
for adjustments and reconciliation. The Effect of the same on Financial Statements is not ascertainable.
6. LONG OUTSTANDING/UNRECONCILED BALANCES
6.1 DEBIT BALANCES
a) The Company is having some Long Outstanding Debit Balances, which have not been reconciled. Also, many credit balances are still lying in these account heads. In absence of proper information, explanations and details, we are unable to quantify the same.
b) Balances with staff, Earnest Money Deposits, Security Deposits, Misc Deposits held, Current Liabilities and Provision, Advances to Contractors/Suppliers, etc. are subject to confirmation and have not been fully reconciled. The balances with other Companies of Board such as JVVNL, AVVNL and JDVVNL are not reconciled for the year 2018-19. As explained to us the same are under process. The effect of the same on the Financial Statements is not ascertainable.
6.2 CREDIT BALANCES
a) The Company is having some Long Outstanding Credit Balances, which have not been reconciled. Also, some debit balances are lying in these account heads. In absence of proper information, explanation and details, we are unable to quantify the same.
b) The Other Current Financial Liabilities include Rs. 6.23 Lakhs payable to M/s Indo Nissan on account of lease/rent expenses lying unpaid/ unadjusted. This issue was also raised by C & AG in its Supplementary Audit for the F.Y. 2010-11. We concur with the view of C & AG that the same should be written back in the books of Company. However, the Company has not fully adjusted such liability in F.Y. 2018-19 also.
c) The company has Rs. 98,613.10 lakhs payable to Parsa Kente Collieries Limited. (Joint Venture) as on 31.03.2019 and the same cannot be confirmed. The reconciliation is under process.
d) Company’s Liabilities for TDS is subject to reconciliation.
7. GENERAL/OTHER
7.1 Figures of the Contingent Liability as disclosed in respect of pending Court/ Arbitration / Legal / Tax related cases, estimated amount of contract and other commitments have been compiled by respective departments of the company & units. The financial impact of the same which may arise cannot be reasonably quantified.
7.2 The payment against supply of Wash Coal at STPS, Suratgarh is made on the basis of actual receipt of Coal. During the course of verification of details pertaining for Wash Coal, cases have been observed where Actual Quantity of Wash Coal is in Excess of that mentioned in Railway Receipt (RR). This has resulted into over payment to coal washeries being payment based upon the quantum of Actual coal received. The washeries are further benefitted due to additional consideration of Normal Loss @ 0.8% on standard basis irrespective of Actual Weight being in excess of Railway Receipt or Actual transit loss, as the case may be. The same cannot be reasonably quantified in absence of complete and detailed information.
Considering para referred above and in absence of complete details, impact on assets/liabilities/profit and loss cannot be ascertained.
For B. L. Ajmera & Co.Chartered Accountants
FRN : 001100C
(Venkatesan Chandra Mouli) Partner Mem. No. : 010054UDIN : 19010054AAAABM5823
Consolidated
Place : JaipurDate : September 12, 2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
149
“ANNEXURE I-A”
(BASIS OF QUALIFIED OPINION)
I. Maintenance of proper Records & Documents:
A. Current Assets and Current Liabilities:
1. Obsolete inventory has not been identified and no provision for obsolete inventory has
been made.
B. Others:
1. All the vehicles as appearing in the books of accounts are insured for third party liability
only. The other Fixed Assets including Office Building and structures at Barmer, office
equipments and cash at Barmer were not insured at all.
2. Under the head 27.209 Advance to CTO Barmer there is an outstanding balance of Rs.
6,68,982.58 which in unadjusted and unreconciled. The same relates to the period
February 2006 to October 2008.
3. The Unit II has been transferred to GLPL and loan from PFC has also been transferred but
the consent has not been received. As per the information given to us, the company has not
yet entered/ arranged the Tri-Party agreement with PFC in respect of its loan transferred
for Unit I and Unit II. However, they have agreed in principle over the same which was a pre
condition for transfer of such loan.
4. The Physical verification of inventory has not been done till the end of the period under
audit. Also, inventory of coal, oil etc is lying since long time but no loss has been booked on
account of diminution in the value.
5. The income from erector hostel is accounted for on cash basis instead of accrual basis.
6. The practice of accounting for Demand Drafts received is such that the cash is debited as
soon as these are received and cash is credited when the Demand Drafts are realized which
should not be the case.
7. There are various unreconciled/ unconfirmed balances under various heads since a long
period of time. The management has not taken proper action for the same. This may result
in losses to the company on account of actual recoverable amounts for which no demand
have been made since long. Similarly, the unit has also not prepared age wise analysis of
these old unreconciled balances.
8. On review of test check of list of ‘Liability for supply of material’, it is observed that in the
following cases ‘Debit’ balances against the supplier are included in the list of liabilities for
supply of material since long period:
Name of supplier / Amount (Rs. In Lakh) Date / period from which
Contractor outstanding
IISCO 17.22 31.03.2006
STPS 28.16 31.01.2008
Total 45.38
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
150
However, no detail/correspondence of these is found in the records. Since, no
correspondence has been made for recovery of these debit balances from the supplier of
materials, hence it was to be provided for doubtful debts in the accounts. However, no
provision in this respect is made in the accounts.
9. Point 18 of the ‘Significant accounting policies’ do not mention the amount which shall be
treated by the auditee as material. Hence, the policy is incomplete to that extent.
10. The loss of Rs. 23.80 lakh has been incurred on account of improper and non-comprehensive
insurance policy in terms of amount and coverage. The unit has not taken appropriate steps to
ensure necessary changes in insurance policy taken by it so that such losses may be avoided in
future.
11. The organization has failed to disclose the fact that both the units are inoperative since
January 2016 (one from July 14 & other from Jan 16) and it has been already decided to
disinvestment of 100% equity shareholding of RVUNL.
12. The unit failed to explain the nature of balances lying under 25.200 Bhel Unit I of Rs
5,68,81,033.47 Dr & under 25.200 Bhel Unit – II of Rs 7,52,71,194.70. Provision should be
made if these amounts are not recoverable any more.
13. The unit has debited Rs 19,92,58,178.00 under the head 71.8 ‘Other Operating Exp.’. Same
was on account of electricity bills of 4 pumping stations of GLPL from June 07 to Mar 17. We
opined that same is prior period expenditure as per order of Principle Secretary, Energy, Govt.
of Rajasthan. The unit however did not considered this same as prior period expenditure. The
explanation behind same is that the quantification and final decision according to the unit has
occurred in the period under consideration only.
For B. L. Ajmera & Co.
Chartered Accountants
FRN : 001100C
(Venkatesan Chandra Mouli)
Partner Mem. No. : 010054
UDIN : 19010054AAAABM5823
Place : Jaipur
Date : September 12, 2019
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
151
ANNEXURE - II TO THE INDEPENDENT AUDITORS’ REPORT
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section
of our report to the Members of RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED 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 RAJASTHAN RAJYA
VIDYUT UTPADAN NIGAM LIMITED (“the Company”) as of March 31, 2019 in conjunction with
our audit of the consolidated financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Board of Directors of the Company is 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 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.
Auditor’s Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial
reporting of the Company based on our audit. We conducted our audit in accordance with the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance
Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing
prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit
of internal financial controls. Those Standards and the Guidance Note require that we comply with
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 included obtaining an understanding of
internal financial controls over financial reporting, assessing 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 auditor’s 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 internal financial controls system over financial reporting of the
Company.
Meaning of Internal Financial Controls over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
152
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.
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 explanation given to us and based on our audit, the following
material weaknesses have been identified as at March 31, 2019:
a) According to information and explanation given to us, Internal Audit of the company for the
F.Y. 2018-19 by company’s internal audit wing is under process.
b) As per explanation & information given to us, physical verification of fixed asset is
conducted by Internal Committee at projects itself. As per physical verification report,
there are no discrepancies in the fixed asset and we relied on physical verification report.
c) As per explanation & information given to us, there is no physical verification report of
inventories available. In the absence of physical verification report, we are not in a position
to comment on discrepancies if any in relation to the physical inventory.
d) As per information & explanation given to us, Reconciliation with DISCOMs is under
process for current year.
e) As per explanation & information given to us, there are certain issues with PKCL (Joint
Venture) as mentioned in Basis for Qualified Opinion which are pending due to dispute
which shows lack of internal control.
f) As per information & explanation given to us, there are certain long outstanding debit and
credit balances standing under different heads such as Balance with Staff, Earnest Money
Deposit, Security Deposit, Misc. Deposit, Current Liabilities and Advance to contractors/
suppliers etc. which are subject to confirmation and reconciliation.
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
statement 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 possible effects of the material weaknesses described above
on the achievement of the objectives of the control criteria, the company has maintained,
in all material respects, adequate internal financial controls over financial reporting and
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
153
such internal financial control over financial reporting were operating effectively as of 31st
March 2019 based on 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 control over financial reporting issued by ICAI.
We have considered the material weakness identified and reported above in determining
nature, timing and extent of audit test applied in our audit of the March 31st 2019
financial statements of the company and these material weakness do not affect our opinion
on the financial statements of the company.
In our opinion, to the best of our information and according to the explanations given to us,
the Company has, in all material respects, an adequate internal financial controls system
over financial reporting and such internal financial controls over financial reporting were
operating effectively as at March 31, 2019, 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.
For B. L. Ajmera & Co.
Chartered Accountants
FRN : 001100C
(Venkatesan Chandra Mouli)
Partner Mem. No. : 010054
UDIN : 19010054AAAABM5823
Place : Jaipur
Date : September 12, 2019
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
154
CIN-U40102RJ2000SGC016484
stConsolidated BALANCE SHEET AS AT 31 MARCH, 2019
ParticularsNoteNo.
As atst31 March, 2018*
As atst1 April2017*
As atst31 March, 2019
ASSETS
Non-current Assets
(a) Property, Plant and Equipment 1 21,60,918.62 18,04,239.62 19,10,311.13
(b) Capital Work-in-Progress 2 13,22,298.30 16,21,392.95 13,65,266.85
(c) Intangible Assets 3 15,523.93 14,866.46 15,088.05
(d) Financial Assets
(i) Investments 4 793.42 376.90 289.14
(ii) Others 5 10,331.13 12,075.11 16,151.81
(e) Deferred Tax Assets(Net) 6 - - -
(f) Other Non Current Assets 7 66,256.67 70,412.81 56,297.97
Total Non Current Assets 35,76,122.07 35,23,363.86 33,63,404.95
Current Assets
(a) Inventories 8 1,10,727.92 52,702.83 91,801.62
(b) Financial Assets
(i) Trade Receivable 9 18,41,039.59 11,24,060.29 9,81,909.52
(ii) Cash and Cash Equivalents 10 16,937.58 9,914.01 6,848.15
(iii) Bank balances other than
(ii) above 10A 9,193.32 5,720.91 7,447.62
(iv) Loans 11 350.44 353.08 355.15
(v) Others 12 2,16,034.50 1,86,065.72 1,76,147.55
(c) Other Current Assets 13 60,976.83 43,361.74 24,490.98
Total Current Assets 22,55,260.18 14,22,178.58 12,89,000.59
Regulatory deferral account debit balances 14 9,315.18 9,860.52 10,405.87
Total Assets 58,40,697.42 49,55,402.96 46,62,811.41
EQUITY AND LIABILITIES
Equity
(a) Equity Share Capital 15 10,06,795.00 9,67,542.00 9,35,882.00
(b) Other Equity 16 (4,06,682.79) (4,27,472.82) (5,06,524.17)
Total Equity 6,00,112.21 5,40,069.18 4,29,357.83
LIABILITIES
Non-current liabilities
(a) Financial Liabilities
(i) Borrowings 17 40,28,695.84 35,47,649.29 33,06,830.51
(ii) Other Financial Liabilities 18 396.69 941.98 16,489.99
(b) Provisions 19 12,463.15 11,311.79 10,079.64
Consolidated
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
155
Particulars
Total Non-Current Liabilities 40,41,555.69 35,59,903.06 33,33,400.14
Current liabilities
(a) Financial Liabilities
(i) Borrowings 20 1,15,322.89 1,07,133.15 50,000.00
(ii) Trade Payables 21
Total outstanding dues of micro and small - - -enterprises
Total outstanding dues of creditors other 2,23,462.23 90,132.86 2,07,328.15 than micro and small enterprises
(iii) Other 22 7,41,376.86 5,57,476.99 5,51,801.84
(b) Other Current Liabilities 23 6,797.33 1,816.47 1,830.39
(c) Provisions 24 46,880.26 34,177.30 24,399.11
Total Current Liabilities 11,33,839.58 7,90,736.77 8,35,359.49
Deferred Revenue on account of advance 25 65,189.95 64,693.95 64,693.95 against depreciation
Total Equity and Liabilities 58,40,697.42 49,55,402.96 46,62,811.41
Significant Accounting Policies and Notes to I & IIAccounts on Financial Statements
* Restated- Refer Note No.- 35.28
Consolidated
For and on Behalf of the Board of Directors As per our separate report of even date
(P. Ramesh)Chairman & Managing Director
DIN : 03551794
( )Director
DIN : 03319346
S.S. Meena B.L. Ajmera & Co.Chartered Accountants
FRN-001100C
(Y.K. Upadhyay)Chief Controller of Accounts
(SGVS Subrahmanyam)Jt. Dir. (Corp. Aff.)-cum-
Company SecretaryM.No. FCS-3962
(Venkatesan Chandra Mouli)(Partner)
M.No.: 010054
Place : JaipurDate : 12-09-2019
NoteNo.
As atst31 March, 2018
As atst1 April2017
As atst31 March, 2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
156
CIN - U40102RJ2000SGC016484
STATEMENT OF PROFIT AND LOSS FOR THE PERIOD ENDED stCONSOLIDATED 31 MARCH, 2019
ParticularsNoteNo.
For the Year endedston 31 March,
2019
For the Year endedston 31 March,
2018
INCOME
Revenue From Operations 26 14,43,842.93 12,78,410.99
Other Income 27 8,328.92 6,154.22
Total Income 14,52,171.84 12,84,565.20
EXPENSES
Generation & Other Direct Expenses 28 8,75,868.10 7,27,917.62
Repairs & Maintenance 29 31,301.89 22,354.30
Employee Benefits Expense 30 39,757.72 35,418.44
Finance Costs 31 3,25,805.11 2,83,692.07
Depreciation and Amortization Expense 32 1,39,684.50 1,25,053.91
Other Expenses 33 12,018.59 11,368.27
Total Expenses 14,24,435.91 12,05,804.62
Profit / (loss) before exceptional items and tax 27,735.94 78,760.58
Add: Movement in regulatory deferral account balances 34 (545.34) (545.34)
Add: Exceptional Item - -
Profit / (loss) before tax 27,190.59 78,215.24
Tax expense:
(1) Current Tax - -
(2) Deferred Tax - -
Profit/(Loss) for the period from continuing 27,190.59 78,215.24 operations
Add: Share in profit of Joint Venture 416.32 87.80
Profit/(loss) for the period 27,606.91 78,303.05
Other Comprehensive Income
A (i) Items that will not be reclassified to profit or loss 30 (8,963.61) (5,998.94)
(ii) Income tax relating to items that will not be (0.07) 0.02 reclassified to profit or loss "
B (i) Items that will be reclassified to profit or loss (ii) Income tax relating to items that will be reclassified to profit or lossTotal Comprehensive Income for the period 18,643.23 72,304.13(Comprising Profit / (Loss) and Other Comprehensive Income for the period)
Earnings per equity share (for discontinued & continuing operation):
(1) Basic 35 0.28 0.82
(2) Diluted 35 0.28 0.82
Consolidated
( in Lakhs )`
For and on Behalf of the Board of Directors As per our separate report of even date
(P. Ramesh)Chairman & Managing Director
DIN : 03551794
( )Director
DIN : 03319346
S.S. Meena B.L. Ajmera & Co.Chartered Accountants
FRN-001100C
(Y.K. Upadhyay)Chief Controller of Accounts
(SGVS Subrahmanyam)Jt. Dir. (Corp. Aff.)-cum-
Company SecretaryM.No. FCS-3962
(Venkatesan Chandra Mouli)(Partner)
M.No.: 010054
Place : JaipurDate : 12-09-2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
157
CIN - U40102RJ2000SGC016484
ST STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 MARCH, 2019
ParticularsFor the Year ended
st31 March 2019
Details Amount Details Amount
For the year endedst31 March 2018
A. Cash Flow from Operating Activity
Net profit before tax as per Statement of Profit & Loss 27,606.91 78,303.05
Adjusted for:
Transfer to Capital Reserve - -
Depreciation & Amortization 1,40,043.95 1,25,275.49
Rebate received from PFC (3835.90) (3,890.84)
Interest Expenditure 3,25,787.74 2,83,524.66
Profit on sale of Property, Plant & Equipments (182.75) -
Increase in Fly Ash Utilisation Fund 6749.80 8,779.22
Deferred Revenue on account of advance against depreciation 496.00 0.00
Adjustment in SD/RM - (54.59)
Interest Unwinding 17.37 163.74
Deferred Revenue Expenditure - W/off - 3.68
Net movement in revenue deferral account 545.34 545.34
Provision made/(written back) 4,890.65 5,011.42
Interest Income from Investments/Deposits (812.83) 4,73,699.38 (426.97) 4,18,931.16
Operating Profit before Working Capital Changes 5,01,306.29 4,97,234.21
Adjusted for:
(Increase)/Decrease Other non current Financial assets 1,743.98 4,076.70
(Increase)/Decrease Other non current assets 31.05 (41.25)
(Increase)/Decrease in Inventory (58,025.09) 39,098.80
(Increase)/Decrease Trade receivable (7,16,979.30) (1,47,960.21)
(Increase)/Decrease Bank balances other than cash and (3,472.41) 1,726.70 cash equivalent
(Increase)/Decrease Financial assets-loan 2.64 2.07
(Increase)/Decrease in Other Current Financial Assets (31,636.27) (4,077.48)
(Increase)/Decrease in Other Current Assets (17,615.09) (18,874.44)
Increase/(Decrease) in Other Non current Financial Liabilities (545.29) (15,493.42)
Increase/(Decrease) in Trade Payables 1,33,329.37 (1,17,195.29)
Increase/(Decrease) in Other Current Financial Liabilities 15,019.80 27,347.03
Increase/(Decrease) in Other Current Liabilities 4,980.86 (6,73,165.75) (13.92) (2,31,404.70)
Cash Generated from Operations (1,71,859.46) 2,65,829.51
Taxes paid - - -
Net Cash from Operating Activity (A) (1,71,859.46) 2,65,829.51
B. Cash Flow from Investing Activity
Purchase of fixed assets (1,98,497.99) (2,75,108.50)
Advance against purchase of fixed assets 4,125.09 (14,073.59)
Investment made in joint ventures (416.52) (87.76)
Sale of Property, Plant and Equipments 395.00 -
Income from Investments/Deposits 2,480.30 395.72
Net Cash Flow from Investing Activity(B) (1,91,914.12) (2,88,874.13)
C. Cash Flow from Financing Activity
Proceeds from issuance of share capital and share 34,650.00 29,628.00 Application Money
Consolidated
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
158
Proceeds from Borrowing 9,45,388.07 7,88,918.90
Repayments of Borrowing (2,94,978.69) (5,04,535.24)
Rebate Received From PFC 3,835.90 3,890.84
Interest Paid (3,18,098.13) (2,91,792.02)
Net cash used in Financing Activity (C) 3,70,797.15 26,110.48
Net increase/decrease in cash and cash equivalents(A+B+C) 7,023.57 3,065.86
Cash and cash equivalents at the beginning of the year 9,914.01 6,848.15
Cash and cash equivalents at the close of the year 16,937.58 9,914.01
Particulars
Cash and Cash Equivalent includes:- (Refer Note No. 10)
Particulars As at31.03.2018
As at31.03.2019
Cash in hand 3.54 3.92
Money in transit 22.20 28.81
Balance With Scheduled Bank 16,911.24 9,879.93
SBBJ CC Account - 0.68
Balance in PD Account 0.30 0.30
Cash imprest with staff 0.29 0.37
Total 16,937.58 9,914.01
Cash and Cash equivalents include restricted Bank Balance of ̀ 13,467.92 Lakhs (P.Y ̀ 6,035.28 Lakhs). These restrictions are primarily on account of cash and bank balances held as margin money deposits against bank guarantee and Letter of Credit issued.
Consolidated
( in Lakhs )`
Details Amount Details Amount
For the Year endedst31 March 2019
For the year endedst31 March 2018
For and on Behalf of the Board of Directors As per our separate report of even date
(P. Ramesh)Chairman & Managing Director
DIN : 03551794
( )Director
DIN : 03319346
S.S. Meena B.L. Ajmera & Co.Chartered Accountants
FRN-001100C
(Y.K. Upadhyay)Chief Controller of Accounts
(SGVS Subrahmanyam)Jt. Dir. (Corp. Aff.)-cum-
Company SecretaryM.No. FCS-3962
(Venkatesan Chandra Mouli)(Partner)
M.No.: 010054
Place : JaipurDate : 12-09-2019
STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED st31 MARCH, 2019
A. Equity Share Capital
For the year 2018-19 ( in Lakhs )`
( in Lakhs )`
( in Lakhs )`
Balance at the beginning of the reporting
period
9,67,542.00
Changes in equity share
capital during the year
39,253.00
Balance at the end of
the reporting period
10,06,795.00
For the year 2017-18
9,35,882.00 31,660.00
Changes in equity share
capital during the year
Balance at the end of
the reporting period
9,67,542.00
Balance at the beginning of the reporting
period
B. Other Equity
CIN - U40102RJ2000SGC016484
Consolidated
Capital Reserve Fly Ash Fund Retained Earnings
As at 1 April 2018 4,603.00 13.00 20,750.66 (4,52,839.48) (4,27,472.82)
Profit for the period 27,606.91 27,606.91
Other comprehensive income (8,963.68) (8,963.68)
Total Comprehensive Income for
the Year18,643.23 18,643.23
Share application money pending
allotment received during the year 34,650.00 34,650.00
Issue of share capital (39,253.00) (39,253.00)
Addition to Fly Ash Fund during the
year6,749.80 6,749.80
Utilisation of Fly Ash Fund during
the year-
- - -
Transfer to retained earnings -
As At 31 March 2019 - 13.00 27,500.46 (4,34,196.25) (4,06,682.79)
Reserve and surplusParticulars
Share application
money pending
allotment
Total
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
159
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
160Consolidated
Particulars Total
Capital Reserve Fly Ash Fund Retained Earnings
As at 1 April 201 st 7 6,635.00 13.00 11.971.43 (5,25,143.61) (5,06,524.17)
Profit for the period 78,303.05
78,303.05
Other comprehensive income (5,998.92)
(5,998.92)
Total
Comprehensive
Income for the
Year-
- - 72,304.13 72,304.13
Share application
money pending
allotment received
during the year 29,628.00
29,628.00
Issue of share capital (31,660.00)
(31,660.00)
Addition to Fly Ash
Fund during the
year 8,779.22
8,779.22
Utilisation of Fly
Ash Fund during the yearTransfer to retained
earnings
As At 31 March st
20184,603.00
13.00 20,750.66
(4,52,839.48)
(4,27,472.82)
Reserve and surplusShare application
money pending
allotment
( in Lakhs )`
For and on Behalf of the Board of Directors As per our separate report of even date
(P. Ramesh)Chairman & Managing Director
DIN : 03551794
( )Director
DIN : 03319346
S.S. Meena B.L. Ajmera & Co.Chartered Accountants
FRN-001100C
(Y.K. Upadhyay)Chief Controller of Accounts
(SGVS Subrahmanyam)Jt. Dir. (Corp. Aff.)-cum-
Company SecretaryM.No. FCS-3962
(Venkatesan Chandra Mouli)(Partner)
M.No.: 010054
Place : JaipurDate : 12-09-2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
161
RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED, JAIPUR
PART-I
A. Group's Information
1. Background
RRVUNL is a company limited by shares (CIN U40102RJ2000SGC016484), incorporated and
domiciled in India. Address of the Company’s registered office is Vidyut Bhawan, Janpath,
Jyoti Nagar, Jaipur - 302005. The bonds of the Company are publicly traded on BSE. The
Company and its subsidiaries (jointly referred to as the ‘Group’ herein under) are considered
in the consolidated financial statements. The group is primarily engaged in the generation
and sale of bulk power to State Power Utilities.
Statement of Compliance
These consolidated financial statements are prepared on accrual basis of accounting and
comply in all material aspects with the Indian Accounting Standards (Ind AS) notified under
the Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendments
there to, the Companies Act, 2013 (to the extent notified and applicable), applicable
provisions of the Companies Act, 1956, and the provisions of the Electricity Act, 2003 to the
extent applicable.
These consolidated financial statements were authorized for issue by Board of Directors on
12 September, 2019.
2. Basis of measurement
The Group follows Mercantile System of Accounting and recognizes significant items of
income and expenditure on accrual basis. The financial statements have been prepared on
the historical cost basis except for certain financial assets measured at fair value.
3. Functional and Presentation Currency
These consolidated financial statements are presented in Indian Rupees (INR), which is the
Group’s functional currency. All financial information presented in INR has been rounded to
the nearest lakhs (upto two decimals), except as stated otherwise.
4. Current and non-current classification:
The Group presents assets and liabilities in the balance sheet based on current/non-current
classification.
An asset is current when it is:
• Expected to be realized or intended to be sold or consumed in normal operating cycle;
• Held primarily for the purpose of trading;
• Expected to be realized within twelve months after the reporting period; or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in normal operating cycle;
• It is held primarily for the purpose of trading;
• It is due to be settled within twelve months after the reporting period; or
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
162
• There is no unconditional right to defer settlement of the liability for at least twelve
months after the reporting period. All other liabilities are classified as non-current.
Deferred tax assets/liabilities are classified as non-current.
B. Significant accounting policies
The Group has elected to utilize the option under Ind AS 101 by not applying the
provisions of Ind AS 16 & Ind AS 38 retrospectively and continue to use the previous
GAAP carrying amount as a deemed cost under Ind AS at the date of transition to Ind AS
i.e. 1 April 2015. Therefore, the carrying amount of property, plant and equipment and
intangible assets as per the previous GAAP as at 1 April 2015, i.e; the Group's date of
transition to Ind AS, were maintained on transition to Ind AS.
1. Basis of consolidation
i. Subsidiaries
a. The group controls an entity when it is exposed, or has rights, to variable returns from
its involvement with the entity and has the ability to affect those returns through its
power over the entity. The consolidated financial statements have been prepared
using uniform accounting policies for like transactions and other events in similar
circumstances.
b. The Group entities combines the financial statements of parent and its subsidiaries
line by line adding together like items of assets, liabilities, equity, income and
expense. Intercompany balances and unrealised gains on transactions between
group companies are eliminated. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of transferred asset
c. Where Group loses control over a subsidiary, it derecognises the assets and liabilities
of the subsidiary, and any related Non Controlling Interest and other component of
equity. Any interest retained in the former subsidiary is measured at fair value at the
date of control is lost. Any resulting gain or loss is recognised in Profit and loss.
ii. Joint Venture
a. Interest in joint ventures are accounted for using equity method after initially being
recognized at cost in the consolidated balance sheet.
b. The joint ventures are initially recognized at cost and adjusted thereafter for the post-
acquisition change in the Group’s share of the joint ventures net assets. The Group’s
share of the joint ventures profit or loss is recognised in the group’s profit or loss and
group’s share of other comprehensive income in group other comprehensive income.
Distributions received from joint ventures reduce the carrying amount of the
investment.
c. Unrealized gains on transactions between the group and its joint venturers are
eliminated to the extent of group’s interest in these entities. Unrealized losses are also
eliminated unless the transaction provides evidence of an impairment of transferred
asset.
2. Property, plant and equipment
i. Recognition, Measurement and Derecognition.
a. An item of property, plant and equipment is recognized as an asset if and only if it is
probable that future economic benefits associated with the item will flow to the Group
and the cost of the item can be measured reliably.
b. Items of property, plant and equipment are measured at cost less accumulated
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
163
depreciation/ amortization and accumulated impairment losses. Cost includes
expenditure that is directly attributable to bringing the asset, inclusive of non-
refundable taxes & duties, to the location and condition necessary for it to be capable
of operating in the manner intended by management.
c. When parts of an item of property, plant and equipment have different useful lives,
they are recognized separately.
d. In the case of assets put to use, where final settlement of bills with contractors is yet to
be effected, capitalization is done on provisional basis subject to necessary
adjustment in the year of final settlement.
e. Assets and systems common to more than one generating unit are capitalized on the
basis of engineering estimates/assessments.
f. Expenditure on major inspection and overhauls of production plant is capitalized,
when it meets the asset recognition criteria.
g. Items of spare parts and servicing equipment which meet the definition of Property,
Plant and Equipment are capitalized. Other spare parts are carried as inventory and
recognized in the statement of profit and loss on consumption.
h. Subsequent expenditure is recognized as an increase in the carrying amount of the
asset when it is probable that future economic benefits deriving from the cost
incurred will flow to the enterprise and the cost of the item can be measured reliably.
i. Property, Plant and Equipment are derecognised when no future economic benefits
are expected from their use or upon their disposal. Gains and losses on disposal of an
item of property, plant and equipment are determined by comparing the proceeds
from disposal with the carrying amount of property, plant and equipment, and are
recognized in the statement of profit and loss.
j. In case of receipt of the completion report in respect of capital works is pending, the
works completed are transferred to Property, plant and equipment on the basis of the
statements approved by the head of the project.
ii. Depreciation/Amortization
a. Depreciation is being charged on straight line method following the rates and
methodology notified by the Rajasthan Electricity Regulatory Commission (Terms
and Conditions for Determination of Tariff) Regulations generally in accordance with
the provision of Schedule II of the Companies Act, 2013.
b. Depreciation on additions to/deductions from property, plant and equipment during
the year is charged on pro-rata basis from/up to the day on in which the asset is
available for use/disposal.
c. When it is probable that future economic benefits deriving from the cost incurred will
flow to the enterprise and the cost of the item can be measured reliably, subsequent
expenditure on PPE viz. Renovation & Modernisation expenditure are depreciated
prospectively over the useful life determined by technical assessment for such
expenditure.
3. Capital work-in-progress
i. The cost of self-constructed assets includes the cost of materials & direct labour, any other
costs directly attributable to bringing the assets to the location and condition necessary for it
to be capable of operating in the manner intended by management and borrowing costs. The
material lying at site for capital works are being shown as capital works in progress.
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
164
ii. Expenses directly attributable to construction of property, plant and equipment incurred till
they are ready for their intended use are identified and allocated on a systematic basis on the
cost of related assets.
4. Intangible assets
i. An intangible asset is recognized if and only if it is probable that the expected future economic
benefits that are attributable to the asset will flow to the Group and the cost of the asset can
be measured reliably.
ii. Intangible assets that are acquired by the Group, which have finite useful lives, are measured
at cost less accumulated amortization and accumulated impairment losses. Cost includes
any directly attributable incidental expenses necessary to make the assets ready for its
intended use.
iii. Mining rights and all related cost there of are amortized on the basis of actual annual quantity
delivered to the total estimated mineable reserves as per approved mines closure plan.
iv. Other intangible assets are amortised on straight line basis over their useful life.
5. Leases
i. Leases where the Group, as lessee has substantially all risks and rewards of ownership are
classified as finance lease. On initial recognition, assets held under finance leases are
recorded as property, plant and equipment and the related liability is recognized under
borrowings. At inception of the lease, finance leases are recorded at amounts equal to the fair
value of the leased asset or, if lower, the present value of the minimum lease payments.
Minimum lease payments made under finance leases are apportioned between the finance
expense and the reduction of the outstanding liability.
ii. An operating lease is a lease other than a finance lease. Lease payments under an operating
lease shall be recognised as an expense on a straight-line basis over the lease term unless
another systematic basis is more representative of the time pattern.
6. Borrowing costs
i. Borrowing costs consist of interest expense calculated using the effective interest method
as described in Ind AS 109 - 'Financial Instruments ' and finance charges in respect of
finance leases recognized in accordance with Ind AS 17 - 'Leases'
ii. Borrowing costs are interest and other costs incurred in connection with the borrowing of
funds.
iii. Borrowing costs that are directly attributable to the acquisition, construction/
exploration/ development or erection of qualifying assets are capitalized as part of cost of
such asset until such time the assets are substantially ready for their intended use.
Qualifying assets are assets which take a substantial period of time to get ready for their
intended use or sale. Capitalization of the borrowing costs in respect of General
Borrowing used for the purpose of obtaining a qualifying is computed based on the
weighted average cost of such borrowing that are outstanding during the period and used
for the acquisition, construction/exploration or erection of the qualifying asset.
iv. Capitalization of borrowing costs ceases when substantially all the activities necessary to
prepare the qualifying assets for their intended uses are complete.
v. Other borrowing costs are recognized as an expense in the year in which they are
incurred.
7. Inventories
Inventories are valued at the lower of cost and net realizable value. Cost includes cost of purchase,
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
165
cost of conversion and other costs incurred in bringing the inventories to their present location and
condition. Weighted average method has been used to work out the pricing of issues and valuation of
inventories. Low value items of consumables are fully charged to statement of profit and loss.
8. Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-
term deposits with an original maturity of three months or less, which are subject to an insignificant
risk of changes in value.
9. Government grants
Revenue subsidies and grants if any, received during the year from the Government of
Rajasthan/Central Government are treated as income and is shown separately in the Statement of
Profit & Loss.
10. Fly ash utilization reserve fund
i. Sale of fly ash is accounted for based on the rates agreed with the customers. Sale proceeds are
credited under separate account head “Fly Ash Utilization Fund” in accordance with the gazette
notification dated 3rd November 2009 issued by Ministry of Environment and Forests (MoEF),
Government of India.
ii. Income earned on this fund, if any, is also credited to the fund.
iii. Expenses incurred by the Group in relation to utilization of fly ash are charged to the “Fly Ash
Utilization Fund”
11. Provisions, Contingent Liabilities and Contingent Assets.
i. A provision is recognized if, as a result of a past event, the Group has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. If the effect of the time value of money
is material, provisions are determined by discounting the expected future cash flows at a pre-
tax rate that reflects current market assessments of the time value of money and the risks
specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognized as a finance costs.
ii. Contingent Liabilities are not recognized but are disclosed in the notes. These are reviewed at
each balance sheet date and are adjusted to reflect the current estimate.
iii. Contingent Assets are not recognized but are disclosed in the financial statements. These are
reviewed at each balance sheet date and are adjusted to reflect the current estimate.
12. Foreign currency transactions and translation
Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the
year end are translated at the year end rate and the difference in translation and realized gains and
losses on foreign exchange transactions (other than for Property, plant and equipment) are
recognized in the Statement of Profit and Loss .
13. Revenue from Operations
i. Effective 1 April 2018, the company has adopted Ind AS 115 “Revenue from contracts with
Customers” using the cumulative effect method, applied to the contracts that were not
completed as of 1 April 2018 and therefore the comparatives have not been restated and
continues to be reported as per Ind AS 18 “Revenue“ and Ind AS 11 “Construction Contracts”.
The details of accounting policies as per Ind AS 18 and Ind AS 11 are disclosed separately if they
are different from those under Ind AS 115.
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
166
ii. Revenue is measured based on the consideration that is specified in a contract with a customer
or expected to be received in exchange for the products or services and excludes amounts
collected on behalf of third parties. The company recognizes revenue when (or as ) the
performance obligation is satisfied, which typically occurs when (or as) control over the
products or services is transferred to a customer.
iii. Revenue from sale of power is accounted for on accrual basis and is billed on Discoms as per the
power station wise tariff approved by Rajasthan Electricity Regulatory Commission subject to
finalization of truing up order. In case of power stations where the final tariff rates are yet to be
approved, provisional rates as provided by the Regulator are adopted. The energy sold to each
Discom is arrived at by apportioning the total units sold by all the power stations of RVUNL
amongst JVVNL, AVVNL and JDVVNL in the approved ratio determined and conveyed by the
Government of Rajasthan from time to time.
iv. In the Comparative period, Revenue from the sale of energy is measured at the fair value of the
consideration received or receivable. Revenue is recognized when the significant risks and
rewards of ownership have been transferred to the buyer, recovery of the consideration is
probable, the associated costs can be estimated reliably, and the amount of revenue can be
measured reliably.
v. Advance against Depreciation considered as deferred revenue in earlier years included in sales,
to the extent depreciation recovered in tariff during the year is lower than the corresponding
depreciation charged.
vi. Any surplus or deficit arising as a result of truing up order on the basis of audited annual
accounts is adjusted in the year of issue of truing up order by the RERC.
14. Other Income
i. Sale of scrap is accounted for as and when sold.
ii. The rebate (by way of reduction in the interest rate) in interest under AG&SP scheme of Govt. of
India on loan given by PFC are directly deducted from interest cost and not separately shown as
income and accordingly net interest is charged to Statement of Profit and Loss.
iii. Interest on loans and advances to staff is recovered after completion of recovery of principal
amount and is recorded/accounted for on receipt basis.
15. Employee benefits
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The
defined benefit plan in respect of pension & gratuity liabilities are funded through trust on the basis
of contribution by RVUN along with other successor entities of erstwhile RSEB. Such contribution
paid/payable is recognized in the statement of profit and loss.
The Group’s net obligation in respect of defined benefit plans is calculated separately for each plan
by estimating the amount of future benefit that employees have earned in return for their service in
the current and prior periods; that benefit is discounted to determine its present value. Any
unrecognized past service costs and the fair value of any plan assets are deducted. The discount rate
is based on the prevailing market yields of Indian government securities as at the reporting date,
having maturity dates approximating the terms of the Group’s obligations and are denominated in
the same currency in which the benefits are expected to be paid.
The calculation is performed annually by a qualified actuary using the projected unit credit method.
Any actuarial gains or losses are recognized in OCI in the period in which they arise.
The benefit of provident fund is covered under defined contribution plan. Obligations for
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
167
contributions to defined contribution plans are recognized as an employee benefits expense in
profit or loss in the period during which services are rendered by employees. The Group pays
fixed contribution to Provident Fund at predetermined rates.
Short term employee benefits are recognized as an expense at the time of actual payment in the
statement of profit & loss.
16. Income tax
i. Current tax expense is recognized in profit or loss except to the extent that it relates to items
recognized directly in other comprehensive income or equity, in which case it is recognized
in OCI or equity.
ii. Deferred tax is recognized using the balance sheet method, providing for temporary
differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes.
17. Other Miscellaneous Expenditure
i. Expenses on training and recruitment, research and development are charged to revenue.
ii. Claims for grade difference, shortage of coal etc. lodged on coal companies are accounted for
as and when the credit notes are received by adjusting/recognizing the same in the Profit
and Loss account in the year of its receipt, irrespective of the period to which it pertains. No
provision is made for above claims due to uncertainty of its receipt.
iii. Debit /credit notes on account of fuel (coal/gas/oil etc.) are accounted for as and when
these are received irrespective of the period it pertains.
iv. Generation linked incentive and productivity award admissible to the officers/employees of
the Power Stations are accounted for on cash basis.
v. The premium, if any, paid to Financial Institutions / Banks on debt restructuring are
deferred and charged to statement of Profit and Loss over the balance period of the loan.
18. Material prior period errors
Material prior period errors are corrected retrospectively by restating the comparative amounts
for the prior periods presented in which the error occurred. If the error occurred before the
earliest prior period presented, the opening balances of assets, liabilities and equity for the
earliest prior period presented, are restated.
19. Earnings per share
i. Basic earnings per equity share is computed by dividing the net profit or loss attributable to
equity shareholders of the Group by the weighted average number of equity shares
outstanding during the financial year.
ii. Diluted earnings per equity share is computed by dividing the net profit or loss attributable
to equity shareholders of the Group by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also the weighted average
number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares.
20. Rate Regulated Activities
Expenses/income recognized in the Statement of Profit & Loss to the extent recoverable from or
payable to the beneficiaries in subsequent periods as per Rajasthan Electricity Regulatory
Commission (the RERC) Tariff Regulations are recognized as Regulatory asset /liability.
Regulatory asset/liability is adjusted from the year in which the same becomes recoverable from
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
168
or payable to beneficiaries.
21. Cash flow statement
Cash flow statement is prepared in accordance with the indirect method prescribed in Ind AS 7
‘Statement of Cash Flows’.
22. Financial instruments
i. Financial assets
All financial assets are recognized initially at fair value plus, in the case of financial assets
not recorded at fair value through profit or loss, transaction costs that are attributable to
the acquisition or issue of the financial asset.
Subsequently, a financial asset is measured at Amortised Cost or fair value through other
comprehensive income or fair value through profit and loss depending upon the fulfilment
of criteria. Subvention Receivable has been measured at fair value through profit and loss.
Amortized cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortization is included in
finance income in the profit or loss. FVTOCI category Financial assets are measured initially
as well as at each reporting date at fair value. Fair value movements are recognized in the
OCI. Instruments included within the FVTPL category are measured at fair value with all
changes recognized in the profit and loss.
Expected credit losses are recognized for all financial assets subsequent to initial
recognition other than financials assets in FVTPL category. The expected credit losses are
measured as lifetime expected credit losses if the credit risk on financial asset increases
significantly since its initial recognition. A financial asset is derecognised when the
contractual rights to the cash flows from the financial asset expire, or it transfers the rights
to receive the contractual cash flows in a transaction in which substantially all of the risks
and rewards of ownership of the financial asset are transferred.
ii. Financial Liabilities
All financial liabilities are recognized initially at fair value and, in the case of borrowings and
payables, net of directly attributable transaction costs. The Group’s financial liabilities
include trade and other payables and borrowings.
After initial measurement, such financial liabilities are subsequently measured at
amortized cost using the EIR method. Transaction costs (incremental costs) are included in
calculation of amortisation cost using effective interest method. The EIR amortization is
included in finance costs in the statement of profit or loss or capitalised as borrowing cost in
respect of a qualifying asset. This category generally applies to borrowings, deposits and
other contractual liabilities.
Financial liabilities designated upon initial recognition at fair value through profit or loss
are designated at the initial date of recognition, and only if the criteria in Ind AS 109 are
satisfied. All other changes in fair value of such liability are recognized in the statement of
profit or loss. The Group has not designated any financial liability as at fair value through
profit and loss.
C. Use of estimates and management judgments
The preparation of financial statements requires the use of accounting estimates which, by
definition, will seldom equal the actual results. Management also needs to exercise judgment in
applying the group’s accounting policies.
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
169
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimates are revised and in any
future periods affected.
1. Useful life of property, plant and equipment
Useful life of assets of generation of electricity business is determined by RERC Tariff
Regulation in accordance with Schedule II of Companies Act, 2013.
The estimated useful life of other item of property, plant and equipment is based on a
number of factors including the effects of obsolescence, demand, competition and other
economic factors (such as the stability of the industry and known technological advances)
and the level of maintenance expenditures required to obtain the expected future cash flows
from the asset.
2. Post-employment benefit plans
Employee benefit obligations are measured on the basis of actuarial assumptions which
include mortality and withdrawal rates as well as assumptions concerning future
developments in discount rates, the rate of salary increases and the inflation rate. The
Group considers that the assumptions used to measure its obligations are appropriate and
documented.
3. Provisions and Contingencies
The assessments undertaken in recognizing provisions and contingencies have been made
in accordance with Ind AS 37, ‘Provisions, Contingent Liabilities and Contingent Assets’.
The evaluation of the likelihood of the contingent events has required best judgment by
management regarding the probability of exposure to potential loss.
4. Materiality
Whether individual items or groups of items need to be disclosed separately in the primary
financial statements or in the notes depends on their materiality. Materiality is judged by
reference to the size and nature of the item. The deciding factor is whether the omission or
misstatement could, individually or collectively, influence the economic decisions that
users make on the basis of the financial statements. In particular circumstances either the
nature or the amount of an item or an aggregate of items could be the determining factor.
Further, an entity may also be required to present separately immaterial items, when
required by law.
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
170
Note
No. 1-:
N
on
-Curr
en
t A
ssets
- P
ropert
y, Pla
nt
an
d E
quip
men
t
(in
Lakh
s )
`
Consolidated
Net
Blo
ck
Bal
ance
as
at
01.0
4.20
18
Add
itio
ns/
(Dis
posa
ls)
Bal
ance
as
at
31.0
3.20
19
Bal
ance
as
at
01.0
4.20
18
Add
itio
ns
Bal
ance
as
at
31.0
3.20
19
Bal
ance
as
at 3
1.03
.201
9
Pro
pert
y, P
lant
and
Equ
ipm
ent
1. L
and
& R
ight
s
Free
hol
d12
,250
.38
2,06
4.23
14,3
14.6
1
-
-
-
14,3
14.6
1
Leas
e ho
ld1,
431.
53
0.14
1,43
1.67
73.1
1
21.1
9
94.3
0
1,33
7.37
`2.
Bui
ldin
gs2,
54,7
18.1
7
87
,980
.81
3,
42,6
98.9
8
27
,272
.18
11
,259
.86
38
,532
.04
3,
04,1
66.9
4
3. H
ydra
ulic
wor
ks1,
71,6
06.4
0
36
,368
.96
2,
07,9
75.3
7
36
,348
.04
10
,765
.63
47
,113
.67
1,
60,8
61.6
9
4. O
ther
Civ
il W
orks
52,2
03.2
6
2,
104.
12
54
,307
.38
5,
592.
67
1,
916.
75
7,
509.
42
46
,797
.96
5. P
lant
& M
achi
nery
16,2
2,70
8.43
3,
57,1
78.2
6
19
,79,
886.
68
2,
82,7
52.1
5
1,
11,2
59.9
1
3,
94,0
12.0
6
15
,85,
874.
62
6. L
ines
& C
able
Net
Wor
k5,
109.
68
0.
35
5,
110.
03
75
8.95
32
9.81
1,
088.
76
4,
021.
27
7. V
ehic
les
144.
58
29
.71
17
4.29
30
.86
8.
00
38
.86
13
5.43
8. F
urni
ture
& F
ixtu
res
1,00
3.46
24.0
7
1,02
7.53
198.
40
54.2
4
252.
64
774.
89
9. O
ffice
Equ
ipm
ents
620.
16
17.7
1
637.
86
313.
43
112.
24
425.
68
212.
19
Tota
l (i)
21,2
1,79
6.05
4,85
,768
.35
26,0
7,56
4.41
3,53
,339
.81
1,35
,727
.63
4,89
,067
.43
21,1
8,49
6.98
10. C
apita
l Spa
res
At G
ener
atin
g St
atio
ns (i
i)17
,873
.66
19,1
31.7
1
37,0
05.3
7
1,11
3.72
3,16
8.64
4,28
2.36
32,7
23.0
1
11. P
rov.
For
loss
-PPE
pen
ding
invs
tg. (
iii)
(Ref
er N
ote
No.
1.3
)3,
888.
07
-
3,88
8.07
-
819.
51
819.
51
3,06
8.56
12.O
&M
Spa
res
(iv)
23,2
03.3
2
(8,5
05.2
9)
14,6
98.0
3
8,06
7.95
-
8,06
7.95
6,63
0.07
Gra
nd T
otal
(i+i
i+iii
+iv)
21,6
6,76
1.09
4,96
,394
.78
26,6
3,15
5.87
3,62
,521
.48
1,39
,715
.77
5,02
,237
.25
21,6
0,91
8.62
Par
ticu
lars
Gro
ss B
lock
A
ccum
ulat
ed D
epre
ciat
ion
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
171
Consolidated
(in
Lakh
s )
` Net
Blo
ck
Bal
ance
as
on
01.0
4.2
017
Add
itio
ns/
(Dis
posa
ls)
Bal
ance
as
at
31.0
3.2
018
Bal
ance
as
on
01.0
4.2
017
Add
itio
ns
Bal
ance
as
at
31.0
3.2
018
Bal
ance
as
at 3
1.0
3.2
018
Pro
pert
y, P
lan
t an
d E
quip
men
t
1. L
and
& R
igh
ts
Free
hol
d12
,246
.28
4.09
12,2
50.3
8
-
-
-
12,2
50.3
8
Leas
e h
old
1,42
9.34
2.19
1,43
1.53
51.7
5
21.3
6 73
.11
1,35
8.42
2. B
uild
ings
2,53
,225
.84
1,49
2.33
2,54
,718
.17
17,8
73.4
9
9,39
8.69
27
,272
.18
2,27
,446
.00
3. H
ydra
ulic
wor
ks1,
68,9
49.0
4
2,65
7.37
1,71
,606
.40
26,6
69.1
6
9,67
8.89
36
,348
.04
1,35
,258
.36
4. O
ther
Civ
il W
orks
51,9
52.4
7
250.
80
52,2
03.2
6
3,73
8.28
1,85
4.39
5,
592.
67
46,6
10.5
9
5. P
lan
t &
Mac
hin
ery
16,1
4,33
1.35
8,37
7.08
16,2
2,70
8.43
1,83
,347
.19
99,4
04.9
7 2,82
,752
.15
13,3
9,95
6.27
6. L
ines
& C
able
Net
Wor
k5,
093.
76
15.9
2
5,10
9.68
428.
85
330.
10
75
8.95
4,35
0.74
7. V
ehic
les
129.
77
14.8
1
144.
58
20.1
6
10.7
0 30
.86
113.
72
8. F
urn
itu
re &
Fix
ture
s97
6.19
27.2
8
1,00
3.46
127.
94
70.4
6
198.
40
805.
06
9. O
ffice
Equ
ipm
ents
611.
11
9.04
620.
16
200.
43
113.
00 3
13.4
3
306.
72
Tot
al (i)
21,0
8,9
45.1
5
12,8
50.9
0
21,2
1,7
96.0
5
2,3
2,4
57.2
4
1,2
0,8
82.5
6
3,5
3,3
39.8
1
17,6
8,4
56.2
5
10. C
apit
al S
pare
s A
t G
ener
atin
g S
tati
ons
(ii)
17,3
21.8
5
551.
81
17,8
73.6
6
720.
71
393.
01
1,11
3.72
16,7
59.9
4
11. P
rov.
For
loss
-PPE
pen
din
g in
vstg
. (iii
)
(Ref
er N
ote
No.
1.3
)
3,88
8.07
-
3,88
8.07
-
-
-
3,88
8.07
12.O
&M
Spa
res
(iv)
17,4
60.6
0
5,74
2.72
23,2
03.3
2
4,12
6.59
3,94
1.36
8,
067.
95
15,1
35.3
6
Gra
nd
Tot
al (i+
ii+i
ii+i
v)21,4
7,6
15.6
7
19,1
45.4
3
21,6
6,7
61.0
9
2,3
7,3
04.5
4
1,2
5,2
16.9
4
3,6
2,5
21.4
8
18,0
4,2
39.6
2
Gro
ss B
lock
Par
ticu
lars
Acc
um
ula
ted
Dep
reci
atio
n
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
172
1.1 The expenditure incurred on account of Major Inspection (M.I.) and Hot Gas Path Inspection (HGPI) of our Gas Power Plants (which is normally carried out at the completion of 48,000/24000 hours of operations which approximately works out to six/three years) are treated as Property Plant and Equipment to be depreciated, over the period of six/three years, based on the future economic benefits envisaged by the company as above.
1.2. Useful life for O&M Spares capitalised in asset code 11.600 ranges from 3 to 25 years
1.3 The Property Plant and Equipment of the company includes net assets amounting Rs. 6,204.10 Lakhs appearing as on 01-04-2008, accounted for in the books of HQ. These assets were transferred by the State Govt. under the transfer scheme. Details of these assets like situation and location are not available due to which provision for the above amount has already been made in the books of accounts in the year 2008-09. Final adjustment of these assets is under process
1.4 Land and rights (free hold/lease hold) have been acquired pursuant to Power Sector Reform Scheme as such the title deeds pertaining to some assets in the name of erstwhile RSEB have been continued.
1.5. The title of the following assets does not vest with RVUN.
Particulars Location 2018-19 2017-18
Road Leading to STPS STPS, Suratgarh 58.43 61.70
Cement Concrete Road CTPP, Chabbra 3,559.07 3,730.15
Road overbridge at KTPS KTPS, Kota 1,957.00 2,038.00
Dam & Anicut CTPP, Chabbra 4,471.65 4,852.64
Gravity Dam KaTPP, Kalisindh 87,165.67 -
1.6 The company has taken certain assets on lease, the original cost of which is ` 4,136.92 Lakhs. Lease rental on such assets are paid as per terms of lease agreements with lessors i.e. Banks.
1.7. The land on which the Rest House and Residential Colony are developed at DCCPP in city stands owned by RRVPNL.
1.8. Out of total land acquired for DCCPP, land measuring 200.01 Bigha is yet to be allotted in favour of the Company.
1.9. Refer Note No. 17 for information on property, plant and equipment pledged as security by the company.
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
173
Note No. 2-: Non Current Assets - Capital Work in Progress
Particulars
Capital Work In Progress 13,22,250.49 16,21,287.29
Capital Inventory and Stores: - -
Stock of material at const.stores 153.09 271.90
Less: Prov. for O&M & Capital Stores 79.33 79.33
Less: CWIP - Expense Adjustment 25.95 86.90
TOTAL 13,22,298.30 16,21,392.95
( in Lakhs )`
( in Lakhs )` 2.1 Movement of CWIP
Particulars
Opening Balance 16,21,392.95 13,65,266.85
Add:Addition during the year 2,03,546.84 2,69,348.74
Less: CWIP expenditure expenses capitalised during the year 5,02,641.49 13,222.63
Closing Balance 13,22,298.30 16,21,392.95
Consolidated
As at31.03.2019
As at31.03.2019
As at31.03.2018
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
174
Note
No. 3-:
N
on
Curr
en
t A
ssets
- I
nta
ngib
le A
ssets
(
in L
akh
s )
`
Consolidated
(in
Lakh
s )
`
Net
Bloc
k
Bala
nce a
s on
1.04.2
018
Add
ition
s/ (D
ispos
als)
Bala
nce a
s at
31.03
.2019
Bala
nce a
s on
1.04.2
018
Add
ition
s/(D
educ
tions
) B
alanc
e as a
t
31.03
.2019
Bala
nce a
s at
31.03
.2019
Inta
ngibl
e ass
ets
Mini
ng C
oal B
lock U
pfron
t Fee
s 15
,494.5
71,1
26.40
16,62
0.97
628.1
1
46
8.94
1,097
.0415
,523.9
3
Tota
l15
,494.5
71,1
26.40
16,62
0.97
628.1
1
46
8.94
1,097
.0415
,523.9
3
Net
Bloc
k
Bala
nce a
s on
1.04.2
017
Add
ition
s/ (D
ispos
als)
Bala
nce a
s at
31.03
.2018
Bala
nce a
s on
1.04.2
017
Add
ition
s/
(Ded
uctio
ns)
Bala
nce a
s at
31.03
.2018
Bala
nce a
s at
31.03
.2018
Inta
ngibl
e ass
ets
Mini
ng C
oal B
lock U
pfron
t Fee
s 15
,494.5
7-
15
,494.5
7
406.5
2
22
1.59
628.1
114
,866.4
6
Tota
l15
,494.5
7-
15,49
4.57
406.5
2
22
1.59
628.1
114
,866.4
6
Parti
cular
s
Gro
ss B
lock
Acc
umula
ted D
epre
ciatio
n
Gro
ss B
lock
Acc
umula
ted D
epre
ciatio
n
Parti
cular
s
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
175
Note No. 4-: Non- Current Financial Assets - Investments
Particulars
In Equity Shares of Joint Venture Companies
Parsa Kente Collieries Ltd 793.42 369.88
(1,30,000 equity shares of `10/- each )
Rajasthan Collieries Ltd. (RCL)* - 7.02
(1,30,000 equity shares of ` 10/- each )
TOTAL 793.42 376.90
* RCL (joint venture company) has incurred losses during the year due to which the Group has
recognised accumulated losses equal to the cost of investments of RCL as at 31st March 2019. The
Group has unrecognised share of losses in respect of RCL amounting to `111.92 Lakhs as at 31st
March 2019 (P.Y. - "Nil") as per their audited financial statements for the year ended 31st March
2019.
( in Lakhs )`
4.1 Disclosure of Investment towards Cost/M.V.
a) Aggregate amount of Quoted Investments - -
b) Aggregate amount of Unquoted Investments (At Cost) 793.42 376.90
Consolidated
As at31.03.2019
As at31.03.2019
As at31.03.2018
As at31.03.2018
4.2 Information About Joint Venture:
As at 31.03.2019 As at 31.03.2018
India Minning 26.00% 26.00%
India Minning 26.00% 26.00%Rajasthan Collieries Limited
Proprotion % of Equity Interest
Parsa Kente Collieries Limited
Name of the CompantCountry of
incorporationPrincipal Activities
Parsa Kente Collieries Limited
A. Balance Sheet
Non-Current Assets 4,158.78 2,322.22
Current Assets 1,99,715.24 73,729.15
Non-Currrent Liabilities 1,558.56 42.58
Current Liabilities 1,98,886.21 74,573.43
Cash and Cash equivalents included in current assets above 4.41 9.75
Non Current Financial Liabilities(Excluding trade and other payables and - - provisions) included in non current liabilities above
Current Financial Liabilities (Excluding trade and other payables and 42,168.40 21,876.78 provisions) included in current liabilities above
( in Lakhs )`
As at31.03.2019
As at31.03.2018
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
176
B. Statement of Profit and Loss
B. Statement of Profit and Loss
Total Income 1,55,515.46 84,378.58
Profit/(loss) for the year 1,993.41 240.56
Other Comprehensive Income 0.48 (0.19)
Total Other Comprehensive Income 1,993.89 240.37
Deprecition and amortisation 27.01 26.20
Interest Income - 87.71
Interest Expense 3,077.93 1,945.81
Income tax Expense/income 1,114.34 128.18
Total Income 0.74 1.39
Profit/(loss) for the year (458.35) 0.16
Other Comprehensive Income 0.30 -
Total Other Comprehensive Income (458.05) 0.16
Deprecition and amortisation - -
Interest Income 0.74 1.39
Interest Expense 72.44 0.00
Income tax Expense/income 0.14 0.06
( in Lakhs )`
( in Lakhs )`
For the Year endedst31 March 2019
For the Year endedst31 March 2019
For the year endedst31 March 2018
For the year endedst31 March 2018
Rajasthan Collieries Limited
A. Balance Sheet
Non-Current Assets 473.24 473.06
Current Assets 303.92 466.07
Non-Currrent Liabilities 60.88 -
Current Liabilities 1,147.32 912.12
Cash and Cash equivalents included in current assets above 12.23 0.29
Non Current Financial Liabilities(Excluding trade and other payables and - - provisions) included in non current liabilities above
Current Financial Liabilities(Excluding trade and other payables and provisions) included in current liabilities above - -
( in Lakhs )`
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
177
4.3 The Company had entered (3 August 2007) into a Joint Venture (J.V.) Agreement with M/s Adani
Enterprises Ltd. (AEL) under which a separate Company 'Parsa Kente Collieries Limited' (PKCL) (CIN:
U10200RJ2007PLC025173) was formed in which ratio of equity capital of RVUN Ltd. and AEL was fixed
at 26:74 respectively. Accordingly, 1,30,000 equity shares of PKCL were issued (March 2008) to the
Company, free of cost, representing 26 percent voting rights in PKCL. The company had recorded these
shares in the form of investment at notional value of Rs. 1/- in the books of accounts in the Financial
Year 2009-10. Further under JV Agreement, Company engaged 'Parsa Kente Collieries Limited' (PKCL)
in the year 2008 for prospecting, exploration and mining of coal over RVUN's coal mines located in the
State of Chhattisgarh (Parsa East & Kanta Basan Coal Blocks) for a period of 30 years from
commencement of supply of coal from the coal block to RVUN's power plants. Further, the Coal Mining
and Delivery Agreement (CMDA) was also been executed on 16.07.2008 between RVUN and PKCL to
undertake the work of mining and arranging for transport and delivery of coal from 'Parsa East & Kanta
Basan' coal blocks located in Chhattisgarh. Mining from this coal block has been started w.e.f.
25.03.2013. The Peak rated capacity of 15 MTPA has been achieved in FY 2018-19.
4.4 The company had entered (9 December, 2011) into a joint venture Agreement with M/s Adani
Enterprises Ltd. (AEL) under which a separate company 'Rajasthan Collieries Ltd.' (RCL) (CIN:
U10100RJ2012PLC038382) was incorporated on dated 27.03.2012 in which ratio of equity capital of
RVUN Ltd. and AEL is fixed at 26:74 respectively. Accordingly, 1,30,000 equity shares of RCL were
issued on dt. 01.10.2013 to the company, free of cost, representing 26 percent voting right in RCL. The
company has acknowledged these shares in the form of investment at notional value of Rs. 1/- in the
books of accounts in the year 2013-14. Further, the Coal Mining and Delivery Agreement (CMDA) has
also been executed on dated 03.10.2013 between RVUN and RCL to undertake the work of mining and
arranging for transport and delivery of coal from Kente Ext. coal block located in Chhattisgarh to
RVUN's power plants.
Further, Parsa coal block located in Chhattisgarh was also allocated to RVUN on 24.03.2015.
Subsequently, another Coal Mining and Delivery Agreement (CMDA) to undertake the work of mining
and arranging for transport and delivery of coal from Parsa coal block to RVUN's power plants has also
been executed on 24.05.2016 between RVUN and RCL. The work relating to mining from these coal
blocks has not been started so far.
4.5 The Board of Directors of RVUNL in its 149th and 150th meeting held on 8th October,2008 and 7th
November, 2008, respectively accorded approval to transfer the business of its 1x125 MW Unit-1
(Stage-I) of Giral Lignite Thermal Power Project situated at Giral in District Barmer, Rajasthan to Giral
Lignite Power Limited (GLPL), a wholly owned subsidiary of the Company on a ‘going concern basis’
along with all its assets & liabilities on book value, at such consideration, being not lower than the net
book value.
4.6 Pursuant to the decision of the board of Director of the company, in its 241st meeting held on
20.10.2014 and after obtaining the consent of the lender(s) and exemption from payment of stamp duty
to the state government, the "effective date of transfer" was fixed to be 01-Apr-2015 for transfer of the
1X125 MW Unit-2 (Stage-II) of Giral Lignite Thermal Power Station situated at Giral in District Barmer,
Rajasthan to Giral Lignite Power Limited (GLPL), a wholly owned subsidiary of the company on a "going
concern basis" along with all its assets and liabilities on book value.
4.7 The company has Investment of ` 37,005.00 Lakhs (` 37,005.00 Lakhs) in its subsidiary GLPL whose
net worth as per its latest audited financial statements has been fully eroded. Considering these facts, a
provision for impairement loss in the value of investment amounting to ` 37,005.00 Lakhs (18,500.00
lacs in FY 2018-19 and 18,505.00 lacs in FY 2017-18) in respect of equity capital contribution has been
made.
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
178
Note No. 5-: Non Current - Financial Assets (Others)
Particulars
FDR with Scheduled banks (Maturing beyond 12 months) 154.48 -
Subvention Receivable From State Govt. 12,075.11 13,973.57
Less:- Current Maturity (Carried to Note No.12) (1,898.46) (1,898.46)
TOTAL 10,331.13 12,075.11
5.1 FDR with Scheduled Banks includes restricted Bank Balance of ` 148.07 Lakhs (P.Y ` 'Nil' Lakhs). These restrictions are primarily on account of cash and bank balances held as margin money deposits against bank guarantee and Letter of Credit issued.
5.2 During the year an amount of `1,898.46 Lakhs ( P.Y `1,898.46 Lakhs) has been adjusted against the deferred subvention receivable as approved in the final FRP by GOR in Nov,2005.
Note No. 6-: Deferred Tax Assets
Deferred tax assets pursuant to Ind AS-12 “ Income Taxes” has not been recognised as there is no virtual certainty supported by convincing evidence that there shall be any future tax liability.
( in Lakhs )`
Note No. 7-: Non-Current Assets -Others
Particulars
Others:
Preliminary Exp. not yet written-off 45.15 45.15
Exp.on survey /Projects not yet sanctioned 173.17 132.05
Prepaid Expenditure 44.50 116.68
Unsecured & Considered Good
Advance to Suppliers & Contractors for Capital Goods (Refer Note.no 7.2)
- considered Good 65,660.61 69,785.70
- considered doubtful 1,364.81 1,364.81
Less: Provision for doubtful advances 1,364.81 1,364.81
Other Deposits 176.62 176.62
Security Deposit with Lessor 155.84 155.84
Security Deposit with C.T.O.(NSC) 0.78 0.78
Total 66,256.67 70,412.81
7.1 The ownership of leased assets of the following companies have not been transferred in the favour of the company after expiry of lease agreements due to pending litigation in court or in absence of power of attorney. The security deposit equivalent to residual value of the lease assets have already been deposited with lessors except M/s ICICI Ltd. for which payment will be made. The details are as under:-
( in Lakhs )`
( in Lakhs )`
S. No. Name of Lessor Lease Value Residual Value
1 ICICI Ltd 8,400.00 84.00
2 Indo Nissan Oxo Chemical Ltd 623.34 155.84
Total 9,023.34 239.84
Consolidated
As atst31 March, 2018
As atst31 March, 2019
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
179
7.2 The Board of Directors of the company in its 154th meeting held on 05-03-2009 decided to make advance to BHEL ̀ 5,982. 58 Lakhs, the equivalent amount of WCT deducted from their bills subject to the condition that the BHEL shall promptly refund entire amount including interest, if any, to the RVUN within seven days from the date of receipt of the same by BHEL from the Commercial Taxes Department (CTD). Till such time the same has been shown as Advance receivable from BHEL. The CTD had denied the claim, hence, the company had filed appeal before the Tax Board Rajasthan against the decision of CTD. M/s BHEL had also filed case before tax board in respect of the same. The case has been decided by Rajasthan Tax Board, Ajmer in favour of RVUN. However instead of refunding the amount the CTD, Raj. has filed the case against the decision of Rajasthan Tax Board before Hon'able High Court Rajasthan, Jaipur. Decision of the same is awaited.
Note No. 8-: InventoriesCURRENT ASSETS
Particulars
Coal Stock 78,229.86 26,293.82
Oil Stock 6,074.70 4,058.79
Coal in Transit 5,885.90 5,182.58
Coal in Transit lying with Third party 4,702.16 986.46
Stores & Spares 15,835.29 16,181.19
Stock shortage pending investigation 329.25 329.25
Less:Prov. For Doubtful old Balances 329.25 329.25
TOTAL 1,10,727.92 52,702.83
8.1 No inventory is carried at fair value less cost to sell. Inventory is carried at cost.
8.2 Inventory of ` 9,18,817.10 Lakhs (P.Y. ` 7,27,322.87 Lakhs) have been recognised as expense. The details are as under:
( in Lakhs )`
Particulars 2018-19 2017-18
Fuel 9,04,693.51 7,15,612.76
Others 14,123.59 11,710.11
Total 9,18,817.10 7,27,322.87
8.3
theft occured at TG store KaTPP Jhalawar . In this connection an FIR had been lodged with
the police. Final accounting treatment shall only be possible and be carried out after
finalisation of investigation.
A provision amounting to ̀ 305.69 Lakhs has been made in the FY 2016-17 on account of
Note No. 9-: Financial Assets - Trade Receivables
Particulars
Unsecured, considered Good 18,41,039.59 11,24,060.29
TOTAL 18,41,039.59 11,24,060.29
( in Lakhs )`
Consolidated
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
180
9.1 Details of Trade Receivables
Particulars
Receivables against sale of power-JVVNL 6,85,109.86 4,61,420.90
Receivables against sale of power-AVVNL 4,98,552.28 3,12,684.59
Receivables against sale of power-JDVVNL 6,57,377.46 3,49,954.81
Total 18,41,039.59 11,24,060.29
9.2 Trade Receivable have been reconciled up to the year 2017-18 and transactions of the current year are in the process of reconciliation.
( in Lakhs )`
Note No. 10-:Current Financial Assets - Cash and Cash equivalents
Particulars
Balances with banks
Current Accounts 3,204.25 3,511.08
SBI CC Acount - 0.68
With Public Deposit Accounts 0.30 0.30
Cash In hand 3.54 3.92
Others
Remittances in Transit 22.20 28.81
Cash Imprest with Staff 0.29 0.37
FDR with Scheduled banks(Maturity upto three months) 13,684.71 6,319.43
Current Account - Fly Ash Fund 22.28 49.41
TOTAL 16,937.58 9,914.01
10.1 Cash and Cash equivalents includes restricted Bank Balance of ` 13,467.92 Lakhs (P.Y. ` 6035.28 Lakhs). These restrictions are primarily on account of cash and bank balances held as margin money deposits against bank guarantee and Letter of Credit issued.
( in Lakhs )`
Note No. 10A-: Current Financial Assets - Other Bank Balances
Particulars
FDR with Scheduled banks(Maturing between three to twelve months)* 4,548.66 1,646.55
FDR With Bank - Fly Ash Fund(Maturing between three to twelve months) - 136.80
Escrow Account with UBI Kolkata 4,644.66 3,937.56
TOTAL 9,193.32 5,720.91
( in Lakhs )`
*Other Bank Balances as at 31.03.2019 includes restricted Bank Balance of 4,525.56 Lakhs (P.Y. 770.69
Lakhs). These restrictions are primarily on account of cash and bank balances held as margin money deposits
against bank guarantee and Letter of Credit issued and on account of Labour Welfare Cess.
` `
Consolidated
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2019
As at31.03.2018
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
181
Note No. 12-: Current Financial Assets - Others
Particulars
Others:
Income Accrued & Due
- considered Good 2.79 1,669.02
Income Accrued but not due
- considered Good - (0.47)
- considered Doubtful 3.25 4.12
Less: Provision for doubtful debts 3.25 4.12
Amt. Recoverable from Employees 1.00 0.96
Fuel Related Receivables & Claims 23,008.20 37,259.87
Subvention Receivable From State Govt. 1,898.46 1,898.46
Income from Investment 0.04 0.04
Other Receivables
- considered Good 36,614.05 7,845.42
- considered Doubtful 381.70 380.83
Less: Provision for doubtful advances 381.70 380.83
FBT Receivable 11.88 11.88
Unbilled Revenue 1,54,497.24 1,37,379.35
Security Deposit with C.T.O.(NSC) 0.44 0.64
Income Accured but not due (NSC Interest) 0.41 0.56
TOTAL 2,16,034.50 1,86,065.72
( in Lakhs )`
Consolidated
Note No. 11-:Current Financial Assets: Loan
Particulars
Un-secured & Considered good
Loans & Advances to Employees
- considered good 20.81 23.45
- considered doubtful 0.03 0.14
Less: Provision for doubtful advances 0.03 0.14
20.81 23.45
Deferred Sale Consideration (Lease) (Refer Note No. 11.1) 329.63 329.63
TOTAL 350.44 353.08
11.1 No credit is taken in the accounts for interest payable on defaulted instalment’s of sale consideration by lease finance companies, due to specific provision in their agreements. Consequential action has been taken by RVUN by way of with-holding payments of lease rentals on occurrence of defaults.
( in Lakhs )`
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
182
12.1 The transactions between RRVUNL and GLPL have been reconciled.
12.2 In view of accounting policy no. 22(i), expected credit losses amounting ` 27,262.46 (P.Y
` 23,129.45 Lakhs) have been recognised for the amount receivable fron Giral Lignite Power Ltd.
12.3 Other receivable includes an excess amount of ̀ 35.72 Lakhs had been paid by STPS (Const.) unit
to Govt. for acquisition of Land. This amount was to be recovered from the payment to be made by
Transmission Company to Govt.
12.4 Lenders for GLPL i.e PFC and Banks are agreed in principle for transfer of their loan to GLPL.
However tripartite agreement is still to be executed. It has also been agreed between RVUN and
GLPL that RVUN shall meet out the financial/contractual commitments (including debt
servicing) regarding loans availed from the financial institutions. Expenditure, if any, incurred by
RVUN in this regard shall be reimbursed by GLPL.
Note No. 13-: Other Current Assets
Particulars
Others:Inter Unit Accounts - - Prepaid Expenses 2,790.34 1,269.43
Advances for Fuel Supply 37,815.04 23,150.86Advances for O&M Supplies
-considered good 13,117.89 14,998.40 - considered doubtful 474.07 455.29
Less: Provision for doubtful advances 474.07 455.29 13,117.89 14,998.40
Deposits 957.53 958.16 Loans & Advances to Other Parties 9.35 7.48 Advance to Suppliers 1,420.23 1,461.16Advance to Contractors 2.67 68.13 T.A. Advance 0.08 0.08 Other Advances 31.97 36.98 GST Recoverable 0.00 0.01 Other Misc. Advance 0.04 0.04 Service tax 0.16 0.16 Prepaid Expenses 87.06 4.97 Other Claims 0.18 0.18 Income Tax Receivable 117.62 34.59 GST Receivable 3,669.64 - Receivable from Gratuity Fund 957.04 1,371.12
TOTAL 60,976.83 43,361.74
13.1 During the year 2006-07 the Mining Department recovered an amount of ` 7.60 Lakhs by seizing our Bank Account at DCCPP, Dholpur, against penalty of Royalty not deposited. This royalty amount was ̀ 0.76 Lakhs against which ten times penalty was recovered. The liability to pay the royalty lied with the contractor M/s. D.K.Sharma. The matter is still under correspondence with the department for getting the refund of the ceased amount. The same is booked under accounting code 28.919.
( in Lakhs )`
Consolidated
As at31.03.2019
As at31.03.2018
Note No. 14-: Regulatory Deferral Account Debit Balances
Particulars
Rate Regulatory Assets
Opening Balance 9,860.52 10,405.87
Add: Addition made during the year:-
Less: Amortization during the year 545.34 545.34
Total 9,315.18 9,860.52
( in Lakhs )`
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
183
Note No.15-: Share Capital
Particulars
Authorised Share Capital
Equity Shares of `10/- each (in No.)* 11,00,00,00,000 11,00,00,00,000
Equity Shares of `10/- each (in Rs. In Lakhs)* 11,00,000.00 11,00,000.00
Issued, Subscribed and Fully Paid Up
Equity Shares of `10/- fully paid up (in No.) 10,06,79,50,000 9,67,54,20,000
Equity Shares of `10/- fully paid up (in Rs. in Lakhs) 10,06,795.00 9,67,542.00
TOTAL 10,06,795.00 9,67,542.00
* Inadvertently, as on 31.03.2018 the Authorised Share Capital was shown as 10,00,00,00,000 equity shares of `10/- each amounting to `10,00,000 Lakhs instead of 11,00,00,00,000 equity shares of `10/- each amounting to `11,00,000 Lakhs.The increase took place w.e.f. 22 December, 2017. The same has been corrected.
15.1 The company has only one class of shares referred to as equity shares having par value of ` 10/- per share. The holders of equity shares are entitled to voting rights proportionate to their share holding at the meetings of shareholders and are entitled to receive dividend as and when declared by the company.
15.2 In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after the distribution of all preferential amounts.
15.3 Reconciliation of the number of Equity Shares
Particulars
2018-19
No. Of Shares
2017-18
At the beginning of the year 9,67,54,20,000 9,35,88,20,000
Add: Issued during the year 39,25,30,000 31,66,00,000
At the end of the year 10,06,79,50,000 9,67,54,20,000
15.4 The Company is a Government Company with 100% Share holding by the Hon’ble Governor of Rajasthan & its nominees. All shares are issued at par value ` 10/- each and are general equity shares having equal rights for dividend and vote.
Consolidated
II. NOTES ON FINANCIAL STATEMENTS
SHAREHOLDERS' FUNDS
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
184
Note No. 16-: Other Equity
Particulars
a) Capital Reserve
Opening Balance 13.00 13.00
Add:Addition during the year - -
Closing Balance 13.00 13.00
b) Retained Earning
Opening Balance (4,52,839.48) (5,25,143.61)
Add:Profit/Loss tranferred during the year 18,643.23 72,304.13
Closing Balance (4,34,196.25) (4,52,839.48)
c) Share application money pending Allotment
Opening Balance 4,603.00 6,635.00
Add: Received during the year 34,650.00 29,628.00
Less: Issued during the year 39,253.00 31,660.00
Closing Balance - 4,603.00
d) Fly Ash Utilisation Fund
Opening Balance 20,750.66 11,971.43
Addition to Fly Ash Fund during the year 6,749.80 8,779.22
Closing Balance 27,500.46 20,750.66
TOTAL (4,06,682.79) (4,27,472.82)
16.1 Retained earnings are the profits of the company earned till date net of appropriations.
16.2 The Company has issued ̀ 4,603.00 Lakhs shares, which were pending for allotment in FY 2017-18, to Hon’ble Governor of Rajasthan at par value of ̀ 10/- each on 15th May, 2018. There are no shares pending for allotment in the FY 2018-19.
16.3 As per the gazette noti?cation dated 3rd November 2009 issued by Ministry of Environment and Forests (MoEF), Government of India, the amounts collected from sale of ?y ash and ?y ash based products shall be kept in a separate account head and be utilized only for development of infrastructure or facilities, promotion and facilitation activities for use of ?y ash until 100% ?y ash utilization level is achieved. In compliance with the said noti?cation, the company has created a Fly Ash Utilization Fund in its books of accounts to which the entire sale proceeds of ?y ash has been transferred and necessary funds for utilisation of notified activities shall be provided as per requirements.
( in Lakhs )`
Consolidated
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
185
Note No. 17-:Non Current Financial Liabilities- Long-Term Borrowings
(i) : Descriptive details for Unsecured Public Bonds
Particulars
BondsS.
NO.
A. Bonds
i) Secured - -
ii) Unsecured 85,000.00 85,000.00
State Government Guaranteed, Redeemable, Non-Convertible Taxable Bonds in the nature of Debenture (Private Placement)
B. Term Loans
i) From Banks
- Secured 50,000.00 -
- Unsecured 4,32,688.69 4,34,166.33
ii) From Others
- Secured 24,89,161.52 21,94,326.48
- Unsecured 9,71,845.63 8,34,156.48
TOTAL 40,28,695.84 35,47,649.29
(i) 9.00% Redeemable Bonds 2014-15(30%, 30% and 40% redeemable at par at the end of 10th, 11th and 12th year respectively from deemed date of allotment i.e. 24.12.2014.)
(ii) 8.74% Redeemable Bonds 2014-15 (Kalisindh Unit - II)* 30,043.10 30,043.10(30%, 30% and 40% redeemable at par at the end of 10th, 11th and 12th year respectively from deemed date of allotment i.e. 26.03.2015.)
86,372.14 86,345.02
Less: Current Maturities (Carried to Note No.21)
9.00% Redeemable Bonds 2014-15 - -
8.74% Redeemable Bonds 2014-15 - -
Interest Accured but not due 1,372.14 1,345.02
1,372.14 1,345.02
Grand Total 85,000.00 85,000.00
(Kalisindh Unit - II)* 56,239.04 56,301.92
( in Lakhs )`
( in Lakhs )`
Consolidated
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
* Secured by State Government Guarantee
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
186
(iii) : Descriptive details of Term Loan from Banks - Unsecured Borrowings
(ii) : Descriptive details of Term Loan from Banks - Secured Borrowings
TERM LOAN FROM
TERM LOAN FROM
S.NO.
S.NO.
(i) Allahabad Bank
a. Term Loan - II *** 50,000.54 2,500.00(Repayable in 11 quarterly installment of ` 4,166.00 Lakhs and 1 quarterly installment of ` 4,174.00 Lakhs upto 31.03.23)
(ii) Indian Overseas bank
a. Term Loan - I *** 33,333.33 50,000.00(Repayable in 1 half yearly installments of `16,666.67 Lakhs and 1 half yearly installments of `16,666.66 Lakhs upto 31.03.2020)
b. Term Loan - II *** 50,000.00 50,000.00(Repayable in 2 half yearly installments of `16,667.00 Lakhs and 1 half yearly installments of `16,666.00 Lakhs upto 31.10.2020)
c. Term Loan - III ***(Repayable in 3 half yearly installments of `5000.00 Lakhs 30.04.2020) 15,000.00 15,000.00
(iii) Bank of India
a. Term Loan - I *** 33,333.00 50,000.00(Repayable in 1 half yearly installments of ` 16,667.00 Lakhs and 1 half yearly installments of ` 16,666.00 Lakhs upto 18.02.2020)
b. Term Loan - II *** 50,000.00 50,000.00(Repayable in 2 half yearly installments of ` 16,667.00 Lakhs and 1 half yearly installments of ` 16,666.00 Lakhs upto 17.05.2020)
c. Term Loan - III *** 1,00,000.00 1,00,000.00(Repayable in 12 quaterly installments of ` 7,693.00 Lakhs and 1 quaterly installments of ` 7,684.00 Lakhs upto 30.06.2022)
(i) Allahabad Bank
a. Term Loan - I ** 50,000.00 - (Repayable in 11 quarterly installment of `4,166.00 Lakhs and 1 quarterly installment of ` 4,174.00 Lakhs upto 29.01.2024)
50,000 -
Less: Current Maturities (Carried to Note No.21)
Allahabad Bank Term Loan - -
Interest Accured but not due
-
Total 50,000.00 -
** Secured by State Govt. Guarantee & Assignment of Present & Future receivable bills raised against the supply of power made to different distribution companies.
( in Lakhs )`
( in Lakhs )`
Consolidated
As at31.03.2019
As at31.03.2019
As at31.03.2018
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
187
TERM LOAN FROMS.
NO.
d. Term Loan - IV ***(Repayable in 12 quaterly installments of ` 3,846.00 Lakhs and 1 50,000.00 50,000.00quaterly installments of ` 3,848.00 Lakhs upto 09.02.23)
e. Term Loan - V *** 50,000.00 (Repayable in 2 half yearly installments of ` 16,667.00 Lakhs and 1 half yearly installment of ` 16,666.00 Lakhs upto 21.08.21)
(iv) Syndicate Bank
a. Term Loan - I *** 50,000.00 50,000.00(Repayable in 5 quarterly installments of ` 10000.00 Lakhs upto 15.01.2021)
b Term Loan - II *** 50,000.00 - (Repayable in 11 quarterly installments of ` 4167.00 Lakhs and 1 installment of ` 4163.00 Lakhs upto 29.03.2024)
(v) Andhra Bank
a. Term Loan - I *** 50,000.00 50,000.00(Repayable in 13 quaterly installments of ` 3846.15 Lakhs upto 31.12.2022)
(vi) Canara Bank
a. Term Loan - I *** 30,000.00 - Repayable in 3 half yearly installments of ̀ 10000.00 Lakhs upto 05.06.2021
Total 6,11,666.88 4,67,500.00
Less: Current Maturities (Carried to Note No.22)
Indian Overseas bank Term Loan-I 33,333.33 -
Indian Overseas bank Term Loan-II 16,667.00 16,666.67
Indian Overseas bank Term Loan-III 10,000.00 -
Bank of India Term Loan-I 33,333.00 16,667.00
Bank of India Term Loan-II 33,334.00 -
Bank of India Term Loan-III 30,772.00 -
Bank of India Term Loan-IV 3,846.00 -
Syndicate Bank Term Loan-I 10,000.00 -
Andhra Bank Term Loan -I 7,692.31 -
Interest Accured but not due 0.54 -
1,78,978.19 33,333.67
TOTAL 4,32,688.69 4,34,166.33
*** Secured by Government Guarantee and Default Escrow
( in Lakhs )`
Consolidated
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
188
(i) REC Loan
a. The sanction amount of Loan is ` 96,176.00 Lakhs. 58,131.82 64,775.45(CTPP - Units III and IV) (Repayable in remaining 35 quarterly installments of ` 1,660.43 Lakhs upto 31.12.2027, Secured against Paripassu charge on Asset and Default Escrow)
b. The sanction amount of Loan is ` 3,34,547.00 Lakhs. 2,64,815.08 2,40,104.23(STPS - Units VII and VIII) (Repayable in 60 quarterly installments of ` 5,575.78 Lakhs upto 31.03.2035, Secured against Paripassu charge on Asset and Default Escrow)
c. The sanction amount of Loan is ` 3,46,769.00 Lakhs . 2,87,831.50 2,42,531.05(CTPP - Units V and VI) (Repayable in 60 quarterly installments of ` 5,579.48 Lakhs upto 31.03.2035, Secured against Paripassu charge on Asset and Default Escrow)
d. Working Capital Loan 1,50,041.51 - (Repayable in 28 equal quarterly installments upto 30.09.2028)(Secured by mortgae of land of KTPS)
e. Working Capital Loan 15,000.00 - (Repayable in 18 Monthly installments of ` 833.33 Lakhs upto 30.04.2021, Secured against Hypothecation of uncumbered existing assets & default escrow)
Sub Total (i) 7,75,819.91 5,47,410.74
(ii) PFC Loan
a. Term Loan - I No. 7301013 - Dholpur 3,272.72 9,818.16(Repayable in remaining 2 quarterly installments of ` 1,600.53 Lakhs upto 15.07.2019, Default Escrow and Hypothecation of Assets)
b. Term Loan - II No. 7301014 - CTPP (Units I & II) 52,588.90 62,150.52(Repayable in remaining 22 quarterly installments of ` 2,338.07 Lakhs upto 15.07.2024, Default Escrow and Hypothecation of Assets)
c. Term Loan - IV No. 7301016 - STPS (Unit VI) 23,514.82 27,604.36(Repayable in remaining 23 quarterly installments of ` 1,000.00 Lakhs upto 15.10.2024, Default Escrow and Hypothecation of Assets)
d. Term Loan - V No. 7301017 - KTPS (Unit VII) 22,345.30 26,601.55(Repayable in remaining 21 quarterly installments of ` 1,040.77 Lakhs upto 15.04.2024, Default Escrow and Hypothecation of Assets)
e. Term Loan - VI No. 7301018 - CTPP (Unit I & II) 37,975.77 44,880.46(Repayable in remaining 22 quarterly installments of ` 1,688.38 Lakhs upto 15.07.2024, Default Escrow and Hypothecation of Assets)
f. Term Loan - VII No. 7301019 - KaTPP (Unit I & II) 5,04,823.10 5,49,696.26(Repayable in remaining 45 quarterly installments of `10,972.68 Lakhs upto 15.04.2030, Default Escrow and Hypothecation of Assets)
g. Term Loan - VIII No. 7301020 - Chhabra (Unit III & IV) 1,09,848.57 1,19,834.80(Repayable in remaining 44 quarterly installments of ` 2,441.90 Lakhs upto 15.01.2030, Default Escrow and Hypothecation of Assets)
h. Term Loan - IX No. 7301021 - STPS (Unit VI) 13,541.79 15,896.88 (Repayable in remaining 23 quarterly installments of ` 575.88 Lakhs upto 15.10.2024, Default Escrow and Hypothecation of Assets)
( in Lakhs )`
(iv) : Descriptive details of Term Loan from others - Secured Borrowings
Consolidated
TERM LOAN FROMS.
NO.As at
31.03.2019As at
31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
189
i. Term Loan - XI No. 7301023 - RGTP (Stg III) 52,168.83 57,021.74(Repayable in remaining 43 quaterly installments of `1,186.67 Lakhs upto 15.10.2029, Default Escrow and Hypothecation of Assets)
j. Term Loan - XIII No.7301024-STPS (Units VII and VIII) 4,55,985.02 3,89,167.77The sanction amount of Loan is ` 5,01,785.00 Lakhs.(Repayable in 80 quarterly installments of ` 6,272.31 Lakhs upto 15.07.2040, Default Escrow and Hypothecation of Assets)
k. Term Loan - XIV No. 7301025 - CTPP (Units V and VI) 4,79,749.19 3,88,799.56The sanction amount of Loan is ` 5,20,053.00 Lakhs(Repayable in 80 quarterly installments of ` 6,500.66 Lakhs upto 15.10.2040, Default Escrow and Hypothecation of Assets)
l. Term Loan - XV No. 7304005 - KTPS (Addl. Capitalisation) 26,553.45 25,198.38 The sanction amount of Loan is ` 27,370.00 Lakhs.(Repayable in 60 quarterly installments of ` 456.17 Lakhs upto 15.07.2034, Default Escrow and Hypothecation of Assets)
m. Term Loan - XVI No. 7304006 - STPS (Addl. Capitalisation) 4,981.22 4,728.26 The sanction amount of Loan is ` 11,413.00 Lakhs.(Repayable in 60 quarterly installments of ` 190.22 Lakhs upto 15.01.2034, Default Escrow and Hypothecation of Assets)
n. Term Loan - XVII No. 7324001 (Buyer's Line & Credit) 46,108.21 49,673.37 The sanction amount of loan is ` 50,000.00 Lakhs.(Repayable in remaining 55 quarterly installments of ` 864.51 Lakhs upto 15.04.2032, Default Escrow and Hypothecation of Assets)
o. Term Loan - I No. 7301012 - GLPL (Unit-I) 1,558.69 4,416.57(Repayable in remaining 2 quaterly installments of Rs. 762.50 upto 15.07.2019, State govt. guarantee and Default Escrow)
p. Term Loan - II No. 7301015 - GLPL (Unit-II) 16,527.18 19,537.75(Repayable in remaining 22 quaterly installments of Rs. 735.00 upto 15.07.2024, Default Escrow and hypothecation of assets)
q. Term Loan - III No. 7301022 - GLPL (Unit-II) 12,848.41 15,181.24(Repayable in remaining 22 quaterly installments of Rs. 571.11 upto 15.07.2024, Default Escrow and hypothecation of assets)
Sub Total (ii) 18,64,391.16 18,10,207.63
Total (i+ii) 26,40,211.07 23,57,618.37
Less: Current Maturities (Carried to Note No.22)
REC Loans 10,808.39 18,683.92
PFC Loans 99,260.20 1,03,117.20
Interest Accured but not due 40,980.96 41,490.77
1,51,049.56 1,63,291.89
GRAND TOTAL 24,89,161.52 21,94,326.48
( in Lakhs )`
Consolidated
TERM LOAN FROMS.
NO.As at
31.03.2019As at
31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
190
(i) PFC Loan ***
a. Term Loan -I 7398002 1,86,624.78 1,82,578.04(Repayable in 28 equal quarterly installments upto 15.01.2027
b. Term Loan - IV No. 7365001The sanction amount of Loan is ` 2,10,000.00 Lakhs. 2,07,412.15 2,15,312.71(Repayable in remaining 27 quarterly installments of ` 7,500.00 Lakhs upto 15.10.2025)
c. Term Loan - IV No. 7371001(Repayable in 20 equal quarterly installments upto 15.10.2025 2,04,466.41 -
Sub Total (i) 5,98,503.34 3,97,890.75
(ii) World Bank Loan (KTPS - Units I to VI)
a. Cash Loan 5.13 6.93(Repayable in remaining 20 monthly installments of ` 0.17 Lakhs and 10 installments of ` 0.14 Lakhs upto 15.03.2022)
b. PPF Advance 14.30 20.54(Repayable in remaining 10 monthly installments of ` 0.59 Lakhs , 10 monthly installments of ` 0.53 Lakhs, 10 monthly installments of ` 0.24 Lakhs upto 15.03.2022 )
Sub Total (ii) 19.43 27.47
(iii) State Govt. Loan (13.75%) (STPS - Units I to V) 13,807.00 13,807.00Terms of repayment of such loan shall be decided by the Govt. of Rajasthan
Sub Total (iii) 13,807.00 13,807.00
(iv) REC Loan ***a. Loan No. 57-9353 - 3,334.22
(This loan has been repaid during the financial year 2018-19)
b. Loan No. 57-10539 3,334.22 23,339.57(Repayable in 2 monthly installments of ` 1666.67 Lakhs upto 31.05.2019)
c. Working Capital Loan 2,11,374.64 2,11,374.64(Repayable in 28 equal quarterly installments upto 31.12.2026)
d. Working Capital Loan 2,10,053.62 2,10,053.22(Repayable in 28 equal quarterly installments upto 31.12.2027)
e. Working Capital Loan( Loan No. 57-10717) 10,836.52 15,004.42(Repayable in 13 monthly installments of ` 833.33 Lakhs upto 30.04.2020)
Sub Total (iv) 4,35,599.01 4,63,106.07
Total (i to iv) 10,47,928.78 8,74,831.29
Less: Current Maturities (Carried to Note No.22)
World Bank Loan 7.71 7.71
PFC Loan 38,430.70 7,500.00
REC Loan 23,830.94 27,500.00
Interest Accured not due 13,813.81 5,667.10
76,083.15 40,674.81
TOTAL 9,71,845.63 8,34,156.48
*** Secured by Government Guarantee and Default Escrow
( in Lakhs )`
(v) : Descriptive details of Term Loan from others - Unsecured Borrowings
Consolidated
TERM LOAN FROMS.
NO.As at
31.03.2019As at
31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
191
Note No. 18-: Other Non-Current Financial liabilities
Note No. 19-: Long term Provisions
Note No. 20-:Current Financial Liabilities - Short-term Borrowings
Particulars
Particulars
Particulars
Others
Security Deposits from Contractors 70.02 615.31
Liability Lease rental of land (PV) 326.66 326.67
TOTAL 396.69 941.98
For employee Benefits
Leave Encashment 12,463.15 11,311.79
TOTAL 12,463.15 11,311.79
a) Loans Repayable on Demand
From Banks - Secured
SBI CC Account* 11,662.69 -
Unsecured
CC from Bank of India - Secured by Government guarantee and 21,563.59 11,133.15default Escrow
Bank of India-Secured by government gurantee and default escrow
b) Other Loans and Advance
Secured
WCL-REC** - 15,000.00
Unsecured
PFC - LOAN No: (Secured by default Escrow and hypothecation of assets 82,096.61 81,000.00and Rs. 2025.76 Lacs on default escrow only)
TOTAL 1,15,322.89 1,07,133.15
*Secured by First pari-passu charge by way of hypothecation of entire current assets of the company including raw material, stock-in-process, finished goods, stores and spares, receivables and other current assets with other working capital lenders.Limit Unutilised as on 31.03.2018 and 31.03.2017.
**Secured by Default Escrow/Hypothecation of unencumbered existing assets of company.
( in Lakhs )`
( in Lakhs )`
( in Lakhs )`
Consolidated
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
192
Note No. 21-: Currrent Financial Liabilities- Trade Payables
Note No. 22-: Other Current Financial Liabilities
Particulars
Particulars
(a) Total outstanding dues of micro and small enterprises* - -
(b) Total outstanding dues of creditors other than micro and small enterprises
-Liab.to Railways for Coal Receipts 37,059.03 34,379.28
-Liab for supply of Material 2,222.12 2,125.59
-Liab.for Unpaid Coal Bills 8,025.24 2,806.81
-Coal supplier account 1,74,090.47 48,008.82
-Gas related cost 879.63 1,581.09
-Oil Supplier account 78.02 72.80
-Liability for works 24.82 19.48
-Suppliers Control A/c 1,072.54 1,128.63
-Other Fuel related liability 10.37 10.37
TOTAL 2,23,462.23 90,132.86
* Disclosure in respect of Micro, Small and Medium Enterprises as at as required by Micro, Small and Medium Enterprises Development Act, 2006 is ̀ Nil (P.Y ̀ Nil), on which auditors have been relied upon.
Current maturities of long-term debt (Refer Note No. 22.6) 4,07,961.38 2,39,081.31
Other Payables
-Security Deposits from Contractors 44,713.38 44,653.69
-Security Deposits from Employees 3.23 4.24
-Earnest Money Deposits 2,559.76 2,158.18
-Retention Money 1,19,801.18 1,21,280.00
-Due for Expenses 1,100.01 1,049.78
-Liability lease rental of land(PV) 44.50 44.50
-Amount payable to related parties (Refer Note No. 22.7) 8,008.81 6,082.32
-Other Deposits 91,555.90 79,824.81
-Liabilities for Capital Works/Supplies 24,499.97 22,554.33
-Liabilities for O&M Works/Supplies 16,361.05 12,264.37
-Prov. For Liab. For Expenses 17,853.63 22,969.81
-Sundry Liabilities 1,382.25 410.61
Stale Cheques 11.76 11.76
M.D.- C.P.F 17.24 17.27
M.D.- Others 3,258.02 3,282.30
-Staff related liabilities 2,218.61 1,783.71
-Remittance in Transit 25.87 1.45
Provision for Guarantee Commission 0.32 2.54
TOTAL 7,41,376.86 5,57,476.99
22.1 Miscellaneous deposits - Others(Other deposit) includes ` 4644.66 Lakhs (P.Y. ` 3,937.56 Lakhs) related to Escrow account for Mines closure received from PKCL.
( in Lakhs )`
( in Lakhs )`
Consolidated
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
193
22.2 In respect of Inter Company transactions with other successor companies of erstwhile RSEB, no interest has been charged/paid.
22.3 The Inter Company transaction in respect of Jd VVNL, JVVNL, AVVNL & RVPN have been reconciled up to the year 2017-18 and transactions of the current year are in the process of reconciliation.
22.4 Staff related liabilities and Loans and advances to staff are under Reconciliation/ Adjustment.
22.5 Provision towards liability for expenses/creation of prepaid expenses is not generally made for small / petty amounts.
22.6 Descriptive details for Current Maturity of Long Term Debts
Particulars
Bonds - Unsecured Borrowing
Term Loan from Banks - Unsecured Borrowings 1,78,977.64 33,333.67
Term Loan from others - Secured Borrowings 1,10,068.59 1,21,801.12
Term Loan from others - Unsecured Borrowings 62,269.34 35,007.71
Interest accrued but not due on term loan 41,195.16 41,576.24
Int. accured but not due on WCL loans 15,450.64 7,362.58
TOTAL 4,07,961.38 2,39,081.31
( in Lakhs )`
( in Lakhs )`
( in Lakhs )`
22.7 Amount Payable to Related Parties
Note No. 23-: Other Current Liabilities
Particulars
Particulars
Amount Payable to RVPNL 3,367.94 3,374.57
Amount Payable to JVVN 1,688.78 1,700.09
Amount Payable to AVVNL 99.57 111.62
Amount Payable to JDVVNL 2,852.53 896.03
TOTAL 8,008.81 6,082.32
Income received in Advance 446.46 413.79
Other Payables
-Staff related liabilities 621.03 587.13
-Statutory Liabilities 5,582.26 733.51
-Prov.for Coal related cost 104.30 36.88
-Prov. For doubtful old balances-others 40.27 40.27
-Sundry Liabilities 3.00 4.89
TOTAL 6,797.33 1,816.47
Consolidated
As at31.03.2019
As at31.03.2019
As at31.03.2019
As at31.03.2018
As at31.03.2018
As at31.03.2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
194
Note No. 24-: Short Term Provisions
Note No. 25-: Deferred Revenue on account of advance against depreciation
Particulars
Particulars
Provisions for Employee Benefits
Gratuity 0.77 0.60
Pension 45,393.89 32,966.19
Ex-gratia 149.43 154.84
Leave Encashment 1,336.17 1,055.67
TOTAL 46,880.26 34,177.30
24.1 The provision for ex-gratia has been created on ad-hoc Basis
Opening Balance 64,693.95 64,693.95
Add: Current Year Transfer 496.00 -
Less: Transferred to Statement of Profit and Loss - -
Closing Balance 65,189.95 64,693.95
25.1 Advance against depreciation (AAD) was an element of tariff provided under the Tariff Regulations for 2004-09 to facilitate debt servicing by the generators since it was considered that depreciation recovered in the tariff is not adequate for debt servicing. Though this amount is not repayable to the beneficiaries, keeping in view the matching principle, this was treated as deferred revenue to the extent depreciation chargeable in the accounts is considered to be higher than the depreciation recoverable in tariff in future years. Since AAD is in the nature of deferred revenue and does not constitute a liability, it has been disclosed in this note separately from shareholders’ funds and liabilities.
( in Lakhs )`
( in Lakhs )`
Note No. 26-: Revenue from Operations
ParticularsFor the
Year endedst 931 March, 201
For the Year endedst31 March, 2018
A. Sale of Power * (Refer Note No. 26.1) 14,79,013.52 13,16,385.32
Add: Advance against Depreciation Deferred (Refer Note No. 26.2) 496.00 -
Less : Trial Run Revenue (Infirm Power) 34,674.60 37,974.34
Total (A) 14,43,842.93 12,78,410.99
B. Sale of Fly Ash 7,087.19 9,745.29
Less: Transferred to Fly Ash Utilisation Fund (Refer Note No. 16) 6,749.80 8,777.05
Less: GST and other Taxes 337.39 968.24
Total (B) - -
TOTAL (A+B) 14,43,842.93 12,78,410.99
( in Lakhs )`
Consolidated
As at31.03.2019
As at31.03.2018
As at31.03.2019
As at31.03.2018
* During the current year truing up orders for the year 2011-12 to 2016-17 (unit-I) and for the year 2015-
16 to 2016-17 (Unit-II) were issued by the RERC on dated 04.04.2018 and 28.05.2018. Accordingly
revenue of Rs.4902.00 lacs (PY Rs. Nil) has been reversed back to discom.
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
195
26.1 Claims on account of late payment surcharge towards delayed payment by DISCOMs amounting to
Rs.1,92,433.19/- Lakhs (P.Y Rs. 1,46,628.29 /- Lakhs ) have been accounted for as Revenue from sale of
power in accordance with RERC Tariff Regulations.
26.2 In line with significant accounting policy No.12(iii), an amount of ` 496 Lakhs (P.Y ` "Nil" ) has been
transferred during the year to Deferred Revenue on account of AAD.
Note No. 28-: Generation & Other Direct Expenses
28.1 Details of Generation and Other Direct Expenses
Note No. 27-: Other Income
Particulars
Interest Income:-
Interest on Loans and Advances to Staff 0.05 0.22
Interest Income from Investments/Deposits 812.83 426.97
Less: Transferred to Fly Ash Utilisation Fund (Refer Note No 16.3) - 2.13
Other Non Operating Income:-
Miscellaneous Receipts 6,145.73 5,341.86
Profit on sale of Property, Plant & Equipments 182.75 -
Sale of Scrap 1,187.56 387.30
TOTAL 8,328.92 6,154.22
( in Lakhs )`
Particulars
Particulars
Generation & Other Direct Expenses 8,75,868.10 7,27,917.62
TOTAL 8,75,868.10 7,27,917.62
A. Fuel consumption
Cost of Coal Consumed (Steam) 8,49,938.16 6,91,907.64
Cost of Oil Consumed (Steam) 21,791.87 10,541.95
Cost of Gas Consumed (Internal Combustion) 33,605.58 50,780.54
Cost of Oil Consumed (Internal Combustion) 2.57 6.63
Other Fuel related Cost 2,260.08 3,614.65
Amortisation of Intangible Assets 468.94 221.59
Fuel Related Losses 4,250.40 5,462.27
Total (A) 9,12,317.60 7,62,535.27
( in Lakhs )`
( in Lakhs )`
Consolidated
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
196
B. Operating Cost
Cost of water 501.77 632.10
Lubricants and consumption store 380.28 933.52
Station Supplies 602.70 451.54
Other Cost * 5,103.97 1,770.17
Total (B) 6,588.73 3,787.33
Total (A+B) 9,18,906.33 7,66,322.59
Less:- Cost of generation Capitalised 43,038.23 38,404.97
TOTAL 8,75,868.10 7,27,917.62
* includes Rs.1,992.58 lacs (P.Y. Rs. Nil) payable to JdVVNL against energy bills for water supply from Mohangarh to Giral pertaining to financial year 2007-08 to 2016-17 for four pumping stations of GLTPP as decided by the Principal Secretary, Energy (GoR) and approved by the management in the meeting held on 02.04.2019.
Particulars
( in Lakhs )`
Note No. 29-:Repairs & Maintenance
Note No. 30-: Employee Benefits Expense
Particulars
Particulars
Plant & Machinery 29,038.33 20,620.25
Buildings 1,117.70 1,099.25
Civil 1,000.79 1,043.55
Hydraulic Works 54.75 80.64
Lines, Cables & Networks 56.24 26.87
Vehicles 23.55 22.79
Furniture & Fixtures 2.91 3.17
Office & Other Equipments 127.00 15.18
TOTAL 31,421.28 22,911.70
Less:- Repairs, Maintenance Expenses Capitalised 119.39 557.40
TOTAL 31,301.89 22,354.30
(a) Salaries and Incentives (Refer Note No.30.1) 32,622.08 30,199.98
(b) Contributions to Terminal Benefits (including provident fund) 17,449.45 13,442.29
(c) Staff welfare expenses (Refer Note no. 30.2) 2,198.66 1,298.03
TOTAL 52,270.18 44,940.29
Less: Employee Cost Capitalized 3,548.58 3,522.98
Less: Acturial Gain/Loss 8,963.88 5,998.87
TOTAL 39,757.72 35,418.44
( in Lakhs )`
( in Lakhs )`
Consolidated
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
197
30.1 Details of Salaries & Allowances
30.2 Details of Staff Welfare expenses
Particulars
Particulars
Basic Pay 23,518.37 15,483.62
Dearness Pay - -
Overtime 528.87 431.62
Dearness Allowances 2,172.22 8,995.22
Other Allowances 1,101.71 771.19
Exgratia 143.38 166.73
Honorarium - -
Leave Encashment 3,149.81 2,695.90
Generation Incentive & Award 2,007.72 1,655.71
TOTAL 32,622.08 30,199.98
D.L.I. Nigam contribution 67.92 52.07
D.L.I. Admn. Charges 11.16 10.30
ESI Admn. Charges 15.54 49.15
Medical Insurance Premium 28.55 15.56
Medical Reimbursement 142.16 151.91
Training Expenses 628.68 203.87
Medical Expenses-Dispensary inside plant 35.04 17.79
Medical Expenses-Dispensary inside colony 0.13 2.98
Education Expenses 990.91 490.40
Canteen Expenses 76.66 77.33
Uniform & Liveries 24.67 30.72
Soap & Duster 4.91 5.55
Safety Devices 5.66 47.72
Recreation Expenses 8.65 9.81
Other Welfare Expenses 114.94 81.51
Payment of Annuity Benefits - 0.01
Other Staff Related Expenses 43.06 51.35
TOTAL 2,198.66 1,298.03
( in Lakhs )`
( in Lakhs )`
Consolidated
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
198
30.3 Disclosure as per Indian Accounting Standard - 19 on 'Employee Benefits'
General description of various employee benefit schemes are as under:
1 At the time of RSEB a separate fund was available in the books of RSEB for payment of pension
to retired employees/to be retired employees. After unbundling a separate trust was created
in 2001 and fund available in the RSEB was transferred to Trust through Transfer Scheme and
is being now funded regularly from the contribution by the successor entities.
2 During the year, in accordance with the provisions of Ind AS-19- "Employees Benefits",
acturial valuation has been obtained in respect of liability of Pension, Gratutity and Leave
Encashment.
3 As per Ind AS-19- "Employee Benefits" states benefits involving employer established
provident funds, which require interest shortfall to be provided, are to be considered as defined
benefits plans.The obligation of the company is to ensure minimum rate of interest to the
members as specified by GOI.Such liability (if any) is not ascertained. Hence, effect in this
respect has not been provided.The contribution of ` 2,147.01 Lakhs (P.Y. ` 1,613.11 Lakhs)
for the year is recognised as expense and charged to Statement of Profit & Loss.
4 AS per Actuarial Valuation the following table sets forth position of Defined Benefit Plans:-
Actuarial Assumptions:
Particulars Pension Gratuity Leave Encashment
Discount Rate Mortality 7.66% 7.66% 7.66%
Valuation Methodology (Projected Unit (Projected Unit (Projected Unit
Credit Method) Credit Method) Credit Method)
Future Salary Increases 8.00% 8.00% 8.00%
A.Changes in present value of defined benefit obligations as on 31.03.2019 (` in Lakhs )
Particulars Pension Gratuity Leave Encashment
Present Value of obligation as at the 89,159.98 17,562.88 12,367.46
beginning of the period (31/03/2018) (77,307.02) (15,711.01) (10,962.73)
Interest cost 6,892.07 1,357.61 956.00
(5,697.53) (1,157.90) (807.95)
Past Service Cost - - -
- (1,496.1) -
Current Service Cost 1,979.75 1,035.77 965.94
(1,985.55) (956.33) (801.36)
Benefits Paid -4,918.00 -1,587.00 -1,640.80
(-3,160.00) (-988.00) (-1,275.22)
Acturial (Gain) / loss on obligation 8,668.87 472.70 1,150.72
(-7,329.89) (-770.43) (-1,070.63)
Present value of obligation as at the end of 1,01,782.66 18,841.96 13,799.32
Period (31/03/2019) (89,159.98) (17,562.88) (12,367.46)
Enterprise best estimate for expense next year is ` 1,108.29 Lakhs - Gratuity
Enterprise best estimate for expense next year is ` 2,108.07 Lakhs - Earned leave liability.
Enterprise best estimate for expense next year is ` 6,407.81- Pension.
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
199
B. Changes in Fair Value of Plan Assets as at 31.03.2019
Particulars Pension Gratuity
Fair value of Plan assets at the beginning of the period 56,194.00 18,934.00
(53,901.00) (17,570.00)
Expected Return on Plan asset 4292.47 1,449.84
(3,972.50) (1,294.91)
Employer Contributions 1,390.00 1,097.00
(1,117.00) (860.00)
Benefits Paid -4,918.00 -1,587.00
(-3,160.00) (-988.00)
Actuarial gain/(loss) on plan assets 94.53 83.16
(363.50) (197.09)
Fair value of Plan assets at the end of the period 56,389.00 19,799.00
(56,194.00) (18,934.00)
*The current year figures are tentative and subject to finalization and audit of Trust accounts.
C. Amount recognized in Balance Sheet
Particulars Pension Gratuity Leave Encashment
Present value of obligation as at the end 1,01,782.66 18,841.96 13,799.32
of Period (31/03/2019) (89,159.98) (17,562.88) (12,367.46)
Fair value of Plan assets at the end of the 56,389.00 19,799.00 -
period (31/03/2019) (56,194.00) (18,934.00) -
Net Liability/Assets(-) recognized in 45,393.66 -957.04 13,799.32
Balance Sheet as provision (32,965.98) (-1,371.12) (12,367.46)
D.Amount recognized in Statement of Profit & Loss
Particulars Pension Gratuity Leave Encashment
(i) Amount included in Profit and loss
Current Service Cost 1979.75 1,035.77 965.94
(1,985.55) (956.31) (801.36)
Past service cost - - -
- (1,496.10) -
Interest Cost (+)/income (-) 2,599.60 -92.23 956.00
(1,725.02) (-137.00) (807.95)
Net acturial (gain) / loss recognised in the - - 1,150.72
period - - (1,070.63)
Net amount recognized in P&L 4,579.34 943.54 3,072.66
(3,710.57) (2,315.40) (2,679.94)
(ii) Amount included in OCI
Net amount recognized in OCI -8574.34 -389.54 -
(-6,966.39) (967.52) -
Figures of previous year (in brackets) have been given to the extent available
Consolidated
( in Lakhs )`
( in Lakhs )`
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
200
E.Other Disclosures
Pension 2018-19 2017-18
stPresent value of obligation as on 31 March 1,01,782.66 89,159.98
Fair value of Plan assets 56,389.00 56,194.00
Liability / (Assets) 45,393.66 32,965.98
Unrecognised past service cost - -
Liability / Assets(-) recognised in Balance Sheet 45,393.66 32,965.98
Gratuity 2018-19 2017-18
stPresent value of obligation as on 31 March 18,841.96 17,562.88
Fair value of Plan assets 19,799.00 18,934.00
Liability / (Assets) -957.04 -1,371.12
Unrecognised past service cost - -
Liability / Assets(-) recognised in Balance Sheet -957.04 -1,371.12
Earned Leave Liability 2018-19 2017-18
stPresent value of obligation as on 31 March 13,799.32 12,367.46
Fair value of Plan assets - -
Liability / (Assets) 13,799.32 12,367.46
Unrecognised past service cost - -
Liability / Assets(-) recognised in Balance Sheet 13,799.32 12,367.46
Major categories of plan assets
Particulars 31.03.2019 31.03.2018
Funds Managed by Insurer 76,188.00 75,128.00
Total 76,188.00 75,128.00
Sensitivity Analysis:
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding
other assumptions constant, would have affected the defined benefit obligation by the amounts shown
below:
a) Impact of the change in discount rate Pension Gratuity Leave encashment
Present Value of Obligation at the end of 1,01,782.66 18,841.96 13,799.32
the period
Impact due to increase of 0.50 % (4,506.10) (694.76) (610.92)
Impact due to decrease of 0.50 % 4,891.92 751.64 663.23
b) Impact of the change in salary increase Pension Gratuity Leave encashment
Present Value of Obligation at the end of the 1,01,782.66 18,841.96 13,799.32
period
Impact due to increase of 0.50 % 4,852.40 406.70 657.87
Impact due to decrease of 0.50 % (4,512.55) (407.29) (611.79)
Sensitivities due to mortality & withdrawals are not material & hence impact of change not calculated.
Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before
retirement & life expectancy are not applicable being a lump sum benefit on retirement.
Consolidated
( in Lakhs )`
( in Lakhs )`
( in Lakhs )`
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
201
Risk Exposure:Valuations are based on certain assumptions, which are dynamic in nature and vary over the time. As such company is exposed to various risks as follow - A) Salary Increases:
Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.
B) Investment Risk:If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.
C) Discount Rate:Reduction in discount rate in subsequent valuations can increase the plan’s liability.
D) Mortality & disability:Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
E) Withdrawals:Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.
Expected maturity analysis of defined benefit plans in future years
Less than Between Between Over 5 years Total
Particulars 1 year 1-2 years 2-5 years
31-Mar-19
Pension 6,231.66 4,616.36 14,434.76 76,499.87 1,01,782.66
Gratuity 2,382.64 2,329.83 4,014.10 10,115.40 18,841.96
Leave Encashment 1,336.17 1,234.75 2,924.35 8,304.05 13,799.32
Total 9,950.46 8,180.94 21,373.21 94,919.32 1,34,423.93
31-Mar-18
Pension 4,383.68 8,635.70 13,944.63 62,195.97 89,159.98
Gratuity 1,981.15 699.04 1,462.09 13,420.60 17,562.88
Leave Encashment 1,107.03 1,064.35 2,564.00 7,632.05 12,367.43
Total 7,471.86 10,399.09 17,970.72 83,248.62 1,19,090.29
Note No. 31-: Finance Costs
( in Lakhs )`
Particulars
Interest expenses (Refer Note No.31.1) 4,30,313.90 4,13,967.45
Lease Rentals 41.28 39.00
Other Borrowing Cost (Refer Note No. 31.2) 15,228.05 15,439.52
TOTAL 4,45,583.23 4,29,445.97
Less: Finance Cost Capitalised 1,19,846.05 1,45,968.20
Unwinding of Interest SD 17.37 163.74
Add: Unwinding Interest lease 50.57 50.57
TOTAL 3,25,805.11 2,83,692.07
Consolidated
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
202
31.1 List of Interest expenses( in Lakhs )`
Particulars
Interest on State Government Loans 1,898.46 1,898.46
Interest on Bonds 7,572.00 7,572.00
Interest on Loans from Financial Institutions:
-Interest on Loans from LIC - 14.52
-Interest on Loans from REC 61,699.69 60,150.59
-Interest on Loans from NCRPB - -
-Interest on loans from World Bank 1.92 2.62
-Interest on loans from PFC 1,84,799.95 1,96,206.75
Sub-Total (A) 2,55,972.02 2,65,844.95
Interest on Short Term Loans from Banks:
Int. on WCL- PFC 67,761.42 73,292.45
Int. on WCL- REC 55,532.74 45,042.04
Int. on WCL- HUDCO - 20.58
Int. on WCL- BOI 24,169.54 18,734.35
Int. on WCL- Others 1,521.89 480.56
Int. on WCL- Allahabad Bank 4,707.24 0.56
Int. on WCL- Syndicate Bank 4,284.56 879.64
Int. on WCL- Canara Bank 1,904.27 -
Int. on WCL- ANDHRA Bank 4,368.84 985.78
Int. on WCL- Indian overseas Bank 10,091.40 8,686.53
Sub-Total (B) 1,74,341.88 1,48,122.50
Total (A to B) 4,30,313.90 4,13,967.45
31.2 List of Other Borrowing Cost
( in Lakhs )`
Particulars
Finance Charges:
Commitment Charges 7.84 5.11
Bank Charges for Remittance 61.61 0.49
Other Bank Charges 14,135.16 54.45
Guarantee Charges 1,023.43 14,688.33
Other Finance Charges - 687.47
Deffered Revenue Exp.written-off - 3.68
TOTAL 15,228.05 15,439.52
Consolidated
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
203
31.3 Penal interest/commitment charges, if any, being part of the terms and conditions of the
loan, have not been shown separately and are included in interest & finance charges.
31.4 During the year, Net Interest & Finance charge pertaining to projects under construction
amounting to ̀ 1,19,846.05 Lakhs (P.Y. ̀ 1,45,968. 20 Lakhs) have been capitalized. Further
an amount of ` 12,187.74 Lakhs (P.Y. `10,828.86 Lakhs) towards interest and finance
charges has been charged to GLPL on pro-rata basis on the funds utilized for GLPL.
Note No. 32-: Depreciation & Amortisation Expenses
Note No. 33-: Administration and Other Expenses
Particulars
Particulars
Amortisation of lease hold lands 21.19 21.36
Depreciation on Building 11,147.61 9,381.10
Depreciation on Hydraulic Works 10,766.74 9,689.18
Depreciation on Other Civil Works 1,918.09 1,821.24
Depreciation on Plant & Machinery 1,11,451.97 99,444.92
Depreciation on lines and Cables Net Works 329.81 330.10
Depreciation on Vehicles 12.50 11.20
Depreciation on Fixtures & Furnitures 73.01 70.53
Depreciation on Office Equipments 116.19 112.93
Dep. on Capital spares at generating stations 3,168.64 393.01
Dep. on O & M Spares 819.51 3,941.36
Amortisation of Intangible assets 468.94 221.59
Less:carried to Note 27 Generation & Other Direct Expenses 468.94 221.59
Sub Total 1,39,825.26 1,25,216.94
Less:- Depreciation Capitalised 140.76 163.03
TOTAL 1,39,684.50 1,25,053.91
Rent, Rates & Taxes 264.30 481.20
Licence & Registration fee of Plant & Machinery 197.95 505.02
Insurance on Fixed Assets 2,647.38 2,601.32
Insurance on Vehicles and Others 23.18 26.27
Security Service Charges 5,906.50 4,801.74
Telephone,Telex & EPABX Expenses 87.94 114.97
Postage & Telegrame 7.07 6.05
Legal Charges 122.46 206.20
Payment to Auditors
i) As Statutory Auditors 8.45 8.79
( in Lakhs )`
( in Lakhs )`
Consolidated
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
204
Particulars
ii) For Reimbursement of Expenses 2.43 2.49
Consultancy Charges 1,228.36 1,672.73
Other professional charges 0.27 2.39
Tariff Fee 80.73 423.22
Conveyance expenses 7.98 7.19
Travelling expenses 128.93 86.83
Travelling allowance to employees 197.99 44.58
Vehicle Running expenses 1,362.56 1,330.39
Newspapers & magazines 1.37 0.87
Other miscellaneous expenses 1,117.79 687.73
Expenditure on CSR Activities (Refer Note No.33.2) 1,473.66 257.77
Freight & Material related expenses 265.43 255.09
Misc. Expenses 4.00 11.70
Hiring of Manpower 10.77 17.38
Bad & Doubtful Debts 18.78 -
SUB TOTAL 15,166.29 13,551.91
Less:Administration and other expenses capitalised 3,147.70 2,183.64
TOTAL 12,018.59 11,368.27
33.1 In absence of determination of rent of buildings of the company occupied by other successor companies and vice-versa neither income nor expenditure is generally accounted for in the books during the period. The credit of HRA also not transferred / received in respect of residential accommodation owned by RVPN & occupied by employees of RVUN and vice-versa, respectively.
33.2 A CSR Policy has been approved by the Board of Directors of the Company in its 182 meeting held on 10.02.2011. As per the said policy an amount of ̀ 1101.94 Lakhs is to be spent by the company till 31 March 2019 (P.Y ̀ 925.56 Lakhs) against CSR activities towards its running power stations whereas the company has spent ̀ 464.70 Lakhs till 31 March 2019 (P.Y ̀ 429.98 Lakhs). Further, as per the said policy the company has also to spend towards capital expenditure related to new projects, the complete details & quantum thereof is yet to be ascertained.
( in Lakhs )`
Note No. 34:- Movement in Regulatory deferral account balances
Particulars
Rate Regulatory Income - -
Ammortization of regulatory deferral asset (545.34) (545.34)
Net movement in regulatory deferral account balances (545.34) (545.34)
Consolidated
( in Lakhs )`
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
205
Note No. 35-: Earnings Per Equity Share (EPS) and Diluted EPS
Particulars
Profit attributable to equity shareholders (used as numerator)
Particulars
Particulars
Weighted average number of equity shares (used as the denominator)
Basic and diluted earnings per share 0.0.28 82
Profit attributable to the equity holders of the company used in 27,606.91 78,303.05calculating basic and diluted earnings per share
Opening Balance of issued equity shares 9,67,54,20,000 9,35,88,20,000
Effect of shares issued during the year 19,87,00,356 15,48,65,343
Weighted average number of equity shares for basic and diluted 9,87,41,20,356 9,51,36,85,343earnings per share
( in Lakhs)`
( Nos)
Note No. 36-: Other Disclosures
36.01 Disclosure as per Ind AS 37 Provisions, Contingent Liabilities & Contingent Assets
a) Capital Commitments:-
The estimated amount of contracts remaining to be executed on capital account, or yet to be and provided for (net of advances) is ` 1,44,268.27 Lakhs as at 31.3.2019 (As at 31.03.2018 ` 3,24,934.31 Lakhs )
b) Other Commitments:-
(i) New/Future Power Projects:- The State Government has earlier entrusted the Group to create additional 4950 MW by setting up the following New Power Projects .Present status of the same has been disclosed as under:-
S. Project Installed Project cost Remarks
No. Capacity MW As At
31-03-2019
1 Banswara Supercritical Unit 1&2 660 X 2 7,92,000.00 In the meeting held on dated
15 .02 .2019 under the
Chairmanship o f Chei f
Secretary, GoR, it was decided
that upon getting response
Consolidated
For the Year endedst 31 March, 2019
For the Year endedst 31 March, 2019
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
For the Year endedst31 March, 2018
For the Year endedst31 March, 2018
36 The Subsidiaries and Joint Ventures considered in the financial statements are as follows:
31.03.2019 31.03.2018
India Electricity Generation Proportionate
Method
100 100
India Electricity Generation Proportionate
Method
100 100
India Electricity Generation Proprotionate
Method
100 100
India Mining Equity Method 26 26
India Mining Equity Method 26 26
Method of
Consolidation Principal ActivitiesCountry of IncorporationName of Company
Proportion % of Shareholding as on:
Subsidiary Companies
Chabbra Power Limited
Dholpur Gas Power Limited
Giral Lignite Power Limited
Joint Venture Companies
Parsa Kente Colliaries Limited
Rajasthan Colliaries Limited
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
206
from Ministry of Railway,
G o v e r n m e n t o f I n d i a
regarding construction of
proposed railway line from
Ratlan to Dungarpur via
Banswara, further action for
setting up of this project will
be taken.
2 Kalisindh Supercritical Unit 3&4 660 X 2 7,92,000.00 The Coordination Committee
in its 11th Meeting held on
20.06.2018 has considered
the proposal of development
of 2x660 MW Kalisindh
Supercritical TPP units at pit
head rather than at Kalisindh
through case-2 (DBFOT basis)
tariff based competitive
bidding process.
A task force was constituted
vide order no. RVUN/CMD/
P . c e l l / F / D . 1 8 9 d a t e d
27.07.2018 to identify land
and water available at pit head
in state of Chhattisgarh near
to RVUN coal block.Task force
submitted its report on
1 2 . 0 9 . 2 0 1 8 t o R V U N
management.
3 Suratgarh Supercritical Unit 9&10 660 X 2 7,92,000.00 No Preliminery action has
been initiated. Ceases to 13th
plan owing to heavy fuel
transportation cost. T h e
Project was deffered by Energy
Assessment committee in view
of less demand.
4 Kota Gas Thermal Project 3 X 110 1,32,000.00 Projects deferred by Energy
Assessment Committee in
view of less demand and non-
availability of gas.
5 Chhabra Gas Thermal Project 3 X 110 1,32,000.00
6 Dholpur Gas Extension Stg-II 3 X 110 1,32,000.00
c) Provisional Disallowance of Capital Cost
While finalisation of the capital cost of new power project / unit of the company, RERC has considered only 50% of overrun IDC and disallowed 50% LD. As the disallowances are provisional subject to the final approval of capital cost of the Project/unit , the disallowed capital cost amounting ` 2,34,697.00 Lakhs as at 31-03-2019 (As at 31-03-2018 ` 1,62,718.00 Lakhs ) at this stage has not been accounted for.
Contingent liabilities :-
a) The Group has outstanding bank guarantees given by commercial banks in favour of following:-
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
207
S. No. Name of Bank
Amount
Current year/
(Previous Year)
- (529.20)
- (502.74)
- (396.90)
108.11
(108.11)
238.21
(238.21)
473.86
(473.86)
285.77
(285.77)
33,060.00
(33,060.00)
2,133.15
(2,133.15)
8,570.00
(8,570.00)
1,648.45
(1,648.45)
-
(368.21)
- (460.22)
- (3,000.00)
27.87
(27.87)
3,000.00
(0.00)
529.20
(0.00)
502.74
(0.00)
396.90
(0.00)
358.24
(0.00)
431.40
(0.00)
Parsa Coal Mine
21
16 Bank of India, Jaipur Under Secretary, MoC, GoI
17 Bank of India, Jaipur M/s SECL For coal supply to Chhabra Unit - I (S.D.)
For coal supply to Suratgarh Unit -VI (S.D.)18
The president of India, Represented throught The
FA& CAO, East Central Railway, Hazipur, Bihar
For making e-payment to ECR on account of coal supply at KTPS
Kente Extension Coal Mine
M/s SECL For coal supply to Kota Unit -VII(S.D.)
SBI, Exhibition Road, Patna
Branch, Bihar
The president of India, Represented throught The
FA& CAO, East Central Railway, Hazipur, Bihar
For making e-payment to ECR on account of coal supply at STPS
SBI, Exhibition Road, Patna
Branch, Bihar
Kente Extension Coal Mine
For transportation of coal from coal block to Surajpur Road
Railway Station for further delivery of coal to RVUN’s power stations
Bank of India, Jaipur M/s SECL
Bank of India, Jaipur
M/s SRCPL
M/s SECL
Under Secretary, MoC, GoI
Nominated Authority, Ministry of Coal, GoI
13 SBI, Exhibition Road,
Patna Branch, Bihar
The president of India, Represented throught The
FA&CAO,East central Railway, Hazipur, Bihar
Bank of India, Jaipur10
8
9
SBI, Collectrate Branch
Bank of India, Jaipur
11 Bank of India, Jaipur Nominated Authority, Ministry of Coal, GoI
12 SBI, Exhibition Road,
Patna Branch, Bihar
The president of India, Represented throught The
FA&CAO,East central Railway, Hazipur, Bihar
For coal supply to Chhabra Unit - I (S.D.)CMD South Eastern Coal Field Ltd., Bilaspur
CMD SECL Bilaspur
1
2
In favour of
SBI,Commercial Branch
SBI,Commercial Branch
20
For making E-Payment to ECR on account of coal supply at KTPS
13016/74/2006/CA-1- dt 19/25.06.07 for allocation of coal blocks
19
For Coal Supply at CTPP Unit 2 (SD)
For transportation of coal from coal block to Surajpur Road Railway
Station for further delivery of coal to RVUN’s power stations
CMD SECL Bilaspur
M/s SECL
M/s SECL
Nominated Authority, Ministry of Coal, GoI
SBI,Commercial Branch4
5
SBI,Commercial Branch3 For coal suppl to Kota Unit - VII (SD)
For Coal Supply at KTPS Unit 7 (SD)
Supply of Coal to CTPP Unit-2 (as security deposit)
Parsa East & Kanta Basan Coal Mine
6 SBI,Commercial Branch
7 SBI, Collectrate Branch
Kente Extension Coal Mine
Dena Bank Under Secretary, MoC, GoI
M/s SRCPL
Purpose
For coal suppl to Suratgarh Unit - VI (SD)
15 SBI,
Commercial Branch
For making E-Payment to ECR on account of coal supply at STPS
SBI,Commercial Branch
14
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
208Consolidated
b) The company has outstanding letter of credit/IRLC issued by the Commercial Banks in
favour of following firms:
c) Claims against the Group not acknowledged as debts as at 31.03.2019.
(i) At KTPS, SSTPS and DCCPP, a disputed claim of ̀ 5,479.00 Lakh, ̀ 189.00 Lakh & ̀ 36.97 Lakh
respectively on account of water cess claimed by Rajasthan State Pollution Control Board for
which appeal have been filed with the Chairman RSPCB.
(ii) At KTPS and SSTPS Disputed claim on account of interest on delayed payment/Incentives of
coal supplies bills and other demands by SECL amounting to ̀ 11,173.00 Lakhs & ̀ 12,366.89
Lakhs respectively. These claims are subject to verification and reconciliation. Further such
claims shall be admitted only after mutual discussions/ reconciliations and acceptance of
counter claim of RVUN by the other party.
(iii) The revision appeals of stamp duty case have partly been accepted by the Honorable Rajashtan
Tax Board, Ajmer vide decision dated 22.10.2018 against a demand opf stamp duty & interest of
Rs. 1,580.00 Lakhs levied by the Additional Collector (Stamps) Jaipur. For filing such appeal
25% of the demand i.e. Rs, 395.00 Lakhs was deposited. According to the said decision the case
has been referred to the Additional collector (stamps) Jaipur by the Honorable Rajashtan Tax
Board, Ajmer for review the matter in detail.
(iv) The Indian Railway raised a demand of ` 3,619.58 Lakhs (P.Y ` 3,619.58 Lakhs) unilaterally
without any proper logic/justification on company for disallowances of rebate on to pay
surcharge for non-maintaining of minimum advance balance by SSTPS with railway.
(v) The Ministry of Coal vide letter dated 25.06.2007 allocated Parsa East and Kente Basan coal
block to the company in the state of Chhattisgarh to meet the coal requirement of the company's
power projects. Subsequently a Joint Venture Company was formed namely M/s Parsa Kente
Collieries Ltd (Known as PKCL) with Adani Enterprises Ltd.
(a) A Coal Mining and Delivery Agreement (CMDA) was signed with the Joint venture
Company. As per CMDA, the schedule date of commencement of coal supply was 25 June
2011; however the actual supply was commenced from 25 March 2013 due to force
majeure agreed by the company. The Board in its 228th meeting held on 28 August 2013
decided to extend the commencement of coal supply date from 25 June 2011 to 25 March
2013 without levy of any penalty on Joint Venture Company. The Joint Venture Company
has raised demand for price escalation amounting to ` 12,170.00 Lakhs (approx.) for FY
2017-18. PKCL also claimed fixed charges amounting to ` 7,800.00 Lakhs (approx.) on
account of short quantity lifted by RVUN in FY 2013-14. As the above dispute could not be
resolved within the contractual provisions of CMDA. Therefore the above case was referred
to Sole Arbitrator. The Sole Arbitrator has passed Award on 27.05.2015 in favour of Joint
Venture Company namely PKCL. The company (RVUN) filed application under section 34
of The Arbitration & Conciliation Act 1996 against this award in the District Court of
Jaipur.
After several hearings, Hon'ble Judge District and Sessions Court ADJ-1 Jaipur
1700.00
(1700.00)
900.00
(900.00)
1800.00
(1,800.00)
154.00
(0.00)
1655.00
(1,500.00)
For Gas Supply at DCCPP3 SBI, commercial
Branch
M/s GAIL (India) Ltd.
4 SBI, commercial
Branch
M/s GAIL (India) Ltd. For Gas Supply at RGTPP
5 Bank of India, Jaipur M/s SECR E-payment of Railway Freight for transportation of coal to RVUN’s TPS
1 SBI, Branch M/s GAIL (India) Ltd. For Gas Supply at RGTPP
2 SBI,Branch M/s GAIL (India) Ltd. For Gas Supply at RGTPP
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
209
Metropolitan rejected the appeal application of RRVUN filed under section 34 of arbitration
of and Conciliation Act, 1996 and maintained the status of the Arbitration award
pronounced by Sole Arbitrator as correct. RVUN filed application against above awards on
03.07.17 under section 37 of Arbitration Act read with Section 13 of Commercial Courts,
Commercial division & Commercial Appellate Division of Hon'ble Rajasthan High Court,
Jaipur Bench. Hon'ble Rajasthan High Court, Jaipur Bench on 28.02.2018 has passed its
decision in favour of RVUN. Further, M/s PKCL has filed a SLP in the Supreme Court of
India, New Delhi against the decision of the Hon'ble Rajasthan High Court, Jaipur Bench
passed on 28.02.2018 in favour of RVUN.
Hon'ble Supreme Court vide order dated 27.05.19 in the above matter ordered for claim of
Price Adjustment/Escalation in favour of M/s PKCL and the claim of Fixed cost in favour of
RVUN. As per above decision of Hon'ble Supreme Court, the claim of M/s PKCL towards
Fixed Cost is not payable.
PKCL has claimed an amount of Rs 314.57 Crores towards Price escalation and an amount
of Rs 88.05 Crs towards interest as per Supreme Court Judgment dated 27.05.19. RVUNL
filed Review Petition on dated 25.06.2019 in Supreme Court of India against the judgment.
Hon’ble Supreme Court of India in its judgment dated 24.07.2019 dismissed the review
petition. Further legal course of action as available to the company shall be taken as per
opinion of the Advocate General/Addl. Advocate General, Rajasthan in Supreme Court of
India. The liability towards Price escalation/interest has not been acknowledged by the
company so far as the company intends to explore other available legal options against the
order of this Review Petition. Even if the liability as per hon’ble Supreme Court order
becomes imperative on the company, the company would in any case recover the same
amount from the Discoms as per RERC tariff Regulations.
(vi) Track Access & Usage Agreement for payment of track access charges on account of use of
private railway track developed by M/s Sarguja Rail Corridor Pvt. Ltd. (SRCPL) for
transportation of coal from Parsa East & Kanta Basan, Kente Extension and Parsa Coal blocks to
Surajpur Road Railway station for delivery of coal to RVUN's power station has been signed
between RVUN and SRCPL on 22.07.2015. As per terms of Track Access & Usages Agreement,
there is Take or Pay obligation for shortfall in off-take of coal by RVUN. M/s SRCPL raised a debit
note amounting to Rs. 492.75 Lakhs against Take or Pay obligation of RVUN for a shortfall of coal
in the off take quantity for the year 2015-16. Further M/s SRCPL has also raised interest claim
amounting to Rs. 63.04 Lakhs on account of delay in payment. RVUN has agreed for payment of
Rs. 492.75 Lakh towards "Take or Pay" charges for the year 2015-16 as per provisions of Track
Access & usage Agreement executed between RVUN & SRCPL,without interest thereon. There
is no Take or Pay obligation for shortfall in off-take of coal by RVUN for FY 2018-19.
(vii) Liability on account of the matters under litigation has not been provided for, as claims in
respect thereof have not been entertained and are being contested. The total amount of liability
which can reasonably be ascertained is ̀ 64,684.14 Lakhs ( PY ̀ 2,608.80 Lakhs). Other matter
mostly pertains to the employees where the amount of probable liability/obligation is not
ascertainable.
(viii) Taxation matters for which liability is disputed and provision is not made (computed on the
basis of assessments/demand made by the department):
Central Excise demand 32.09 16.45
Other taxation matter for which company is in appeal. 990.65 990.65
*Service Tax Matter 47.57 3.67
*Demand of service tax amounting Rs. 14.68 Lakhs was raised along with interest and penalty.
Principle amount of demand has been deposited. At present case is being contested by the company
to save further interest & penalty liabilities.
Consolidated
Particulars As at31.03.2019
As at31.03.2018
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
210
The Income Tax assessment of the company has been completed upto the Assessment year 2015-
2016. However, following appeals are pending against the assessment order/penalty order:-
1. RVUN’s appeal for the Assessment Year 2001-02 and 2002-03 are pending at CIT(A) against the
penalty order.
2. RVUN’s appeal for the Assessment Year 2005-06 and 2011-12 are pending at ITAT against the
order of the CIT(A).
3. Department’s appeals for the Assessment Year 2001-02, 2002-03, 2003-04, 2004-05, 2005-06,
2007-08, 2008-09, 2009-10 are pending at High Court against the Assessment order.
4. Department’s appeals for the Assessment Year 2006-07 and 2007-08 are pending at Supreme
Court against the Assessment order.
RVUN has received notice of show cause cum demand in respect of Service Tax from the
Directorate General of GST. The amount involved under said notice of show cause cum demand
is Rs. 473.44 crore plus interest plus penalty thereon. RVUN received the consideration from the
Discoms against the sale of electricity and Late payment Surcharge as per the PPAs with the
Discoms and regulations of RERC. Hence, in case the aforesaid liabilty of service tax on deemed
energy and LPS got materialized, the company expects reimbursement of the same from the
Discoms.
(ix) M/S BGRESL, the EPC contractor for setting up of 2 X 600 MW kalisindh Thermal Power Project,
has claimed Rs. 97,758.20 Lakhs. As RVUNL has not acknowledge the claims, the government of
Rajasthan have appointed a sole arbitrator for settlement of disputes. The matter is under
subjudice, therefore, liability in this regard has not assessed by the company.
(x) Some disputes with M/s PKCL have been referred before sole arbitrator in term of clause no.10.2
of the Coal Mining and Delivering Agreement (CMDA). Quantum of disputed amount is Rs.
41,101.38 Lakhs. As the above matter is subjudice in the court, therefore, the liability thereon
cannot be assessed presently.
36.02 During the F.Y. 2008-09, the company had received a demand notice of Rs. 25.27 lacs/- for the A.Y.
2008-09 from Income Tax Officer (TDS)-2, Jodhpur. The company has gone into further appeal before
Commissioner of Income Tax (Appeals) (CIT-A) as well as ITAT, Jodhpur against the said order and
the CIT-A as well as ITAT has decided the case against the company and company has deposited Rs.
25.27 lacs/- against such demand. The company has further gone into appeal before Hon’ble High
Court of Rajasthan, Jodhpur. The company has not booked the said amount of Rs. 25.27 lacs/- as
expenditure till the end of the reporting period and the same is standing as Short Term Loans and
advances to others.
36.03 The company does not expect any reimbursement in respect of above contingent liabilities except
fuel related liabilities.
36.04 It is not praticable to estimate the timing of cash outflows, in respect of matters above pending in
arbitration/ appellate procedings.
36.05 Contingent Assets :-
(a) An amount of Rs. 809.33 lakhs (PY 524.85 lakhs ) pertains to ash disposal in wet form has not
been recognized as revenue as the matter is subjudice in the court.
(b) Unsettled claims lodged by RRVUNL to coal companies amounting to Rs. 63,611.89 lakhs.
(c) While determining tariff for the company,the RERC has disallowed certain Capital/O&M
expenditure incurred by the company.The company has filed appeals with the Appellate
Tribunal for Electricity (APTEL) against the tariff orders issued by the RERC. The company
believes that a favourable outcome is probable and the estimated financial impact of the same
may be amounting to Rs. 28,333.00 Lakhs.Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
211
36.06 Note for Disinvestment
a) Chhabra TPP (4X250 MW U# 1 to 4 under operation + 2X660 MW under execution):
The State Cabinet had accorded their approval on 23.02.2016 for disinvestment of ChhabraTPP
either to NTPC( on Direct Negotiation or Asset Sale basis) or through Open Competitive Bidding.
The Process of disinvestment of chhabra TPP to NTPC or through open Competitive Bidding
Route was under hold due to various issues including transfer of coal from RVUN Coal blocks to
the prospective buyers.Looking to the improvement in operational performance of CTPP as well
as the turnaround in its financial performance, RVUN requested to GoR to review the decision of
Disinvestment of CTPP plant of RVUN. The State Cabinet, GoR has decided to not to disinvest
the Chhabra TPP (unit - 1 to 6) order dated 27.06.2019.
b) Kalisindh TPP (2X600 MW U# 1 and 2 under operation):
The State Cabinet had accorded their approval on 16.01.2017 for disinvestment of
KalisindhTPP through Open Competitive Bidding. The process of disinvestment of KalisindhTPP
was under hold due to various issues including transfer of coal from RVUN coal blocks to
prospective buyers.
Looking to the improvement in operational performance of KaTPP as well as the turnaround in
its financial performance, RVUN requested to GoR to review the decision of Disinvestment of
KaTPP plant of RVUN. The State Cabinet, GoR has decided to not to disinvest the Kalisindh TPP
(unit - 1 & 2) order dated 27.06.2019.
Consolidated
35.07 Disclosure as per by Indian Accounting Standard 24 “Related Party Disclosures” :
A. Names of the related party and description of relationship:
S. No.
1
2
a)
1 DIN 03551794
2 DIN 07649438
3 DIN 01180608
4 DIN 00992744
5 DIN 05220511
6 DIN 03340556
7 DIN 03521006
8 DIN 00004812
9 DIN 00575501
10
13
DIN 08200730
DIN 03319346
11
14
DIN 02821192
DIN 07646220
12
15
DIN 07580613
PAN AGDPS2124E
01.04.2018 to 08.03.2019
01.04.2018 to 31.03.2019
Parsa Kente Collieries LtdJoint Venture
Rajasthan Collieries Ltd.
RVUNL
30.11.2018 to 31.03.2019
Sh. Nageen Kumar Kothari,
Chairman & Managing Director 1.04.2018 to 30.11.2018
Sh. Naresh Pal Gangwar,
IAS ,Director 26.12.2018 to 31.03.2019
Dr.Rajendra Prasad Singh,
Independent Director 01.04.2018 to 31.03.2019
Sh. Narendra Nath Misra,
Independent Director
Sh. Sanjay Malhotra,
IAS ,Director
Sh. KunjiLal Meena,
IAS,Director
Sh. Dr. Prithvi Raj,
IAS,Director
Sh. Praveen Gupta,
IAS,Director
Ms.Shakuntala Singh,
Sh. Shyam swaroop Meena
IAS,Director
Director (Technical)
Relationship
Sh. P. Ramesh,
IAS ,Chairman & Managing Director
26.12.2018 to 31.03.2019
04.01.2019 to 31.03.2019
1.04.2018 to 04.01.2019
14.08.2018 to 31.03.2019
01.04.2018 to 31.03.2019
01.04.2018 to 10.05.2018
01.04.2018 to 31.03.2019
Key Managerial Person / Directors
01.04.2018 to 31.03.2019
Ms.Arti Dogra,
Sh. Prahlad Sahai Arya
IAS,Director
Director (Projects)
Dr.Murari Lal Gupta,
Sh. SGVS Subrahmanyam
Director (Finance) & Chief Financial
Jt. Director (Corporate Affairs)
Officer (CFO)
-cum-company Secretary
1.04.2018 to 26.12.2018
Related party where control exists
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
212
b)
1 DIN-03551794
2 DIN-07649438
3 DIN-07400105
4 DIN-07686384
5 DIN-07580613
6 DIN-03319346
7 DIN-07646220
8 DIN-08242719
9 DIN-07259148
10 BSNPS3045P
11 ABIPS1460K
1
2
3
4
5
1
2Post Employment Benefit Plans Trusts
Subsidaries
Rajasthan Rajya Vidyut karamchari Gratuity Fund
01.04.2018 to 31.03.2019
Smt. Pushpa Upadhyay
Jodhpur Vidyut Vitran Nigam Limited
Rajastahn State Mines and Minerals Limited
Rajasthan Rajya Vidyut Prasaran Nigam Limited
01.04.2018 to 31.03.2019
01.04.2018 to 31.03.2019Sh. Hitesh Sharma
Sh. Surendra Kumar Sethi
Sh. P.S. Arya
Sh. R P Singh 01.10.2018 to 31.03.2019
Jaipur Vidyut Vitran Nigam Limited
Ajmer Vidyut Vitran Nigam Limited
01.04.2018 to 31.03.2019
01.04.2018 to 17.09.2018
Sh. P. Ramesh, IAS
01.04.2018 to 18.07.2018
01.04.2018 to 27.03.2019
Sh. Gopal Jasoria
Sh. M. L. Gupta
Sh. S.S. Meena 01.04.2018 to 31.03.2019
30.11.2018 to 31.03.2019
Sh. N. K. Kothari 01.04.2018 to 30.11.2018
Sh. Rakesh Verma
Entities under control of same management
Rajasthan Rajya Vidyut karamchari Superannuation Fund
Consolidated
B. Transactions with Related Parties
Particulars 2018-19 2017-18
2. Transactions with post employment benefit plans
-Contribution made during the year 2,496.84 1,983.81
3. Compensation to Key Managerial Personnel
- short-term employee benefits 159.96 123.75
- post-employment benefits 5.22 17.12
Other long term benefits 1.47 0.63
1. Joint Ventures
Particulars 2018-19 2017-18
PKC/RCL
Service Received 1,15,490.98 90,212.77
Reimbursement of Expenses, Taxes & Duties Paid 4,60,882.43 2,00,134.05
Sale of Goods(Sale of Coal Rejects) 21,400.14 6,188.47
( in Lakhs )`
( in Lakhs )`
Name of the Company Nature of transactionS.
No. 2018-19 2017-18
1 Jaipur Vidyut Vitran Nigam Limited Sale of Energy 5,35,515.63 4,66,725.99Services Received 5.27 1.12 Service Provided - 0.28
2 Ajmer Vidyut Vitran Nigam Limited Sale of Energy 3,67,074.26 3,33,732.28Services Received - 0.06 Service Provided - 0.38
3 Jodhpur Vidyut Vitran Nigam Limited Sale of Energy 4,36,415.50 3,78,579.97Service Received 8.13 6.46 Service Provided 0.00 0.28
4 Rajasthan Rajya Vidyut Prasaran Service Provided 242.25 187.15Nigam Limited Service Received 235.76 929.12
( in Lakhs )`
4. Transaction with the related parties under the control of the same government
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
213Consolidated
Particulars As at31.03.2018
As at31.03.2019
Amount Recoverable
-From Post Employment Benefit Plans 957.04 1,371.12
Amount Payable
-To Joint Ventures 98,613.10 20,458.10
-To Key Managerial Personnels 8.07 10.20
-To Post Employment Benefit Plans 45,393.66 32,965.98
C. Outstanding Balances with related parties
( in Lakhs )`
36.08 Disclosure as per Ind AS 17 'Leases' on company's leasehold land are as follows:-
Minimum
Lease Payment
Present Value
of Minimum
Lease Payment
Minimum Lease
Payment
Present Value
of Minimum
Lease Payment
50.57
44.50
50.57
44.50
202.26
130.68
202.26
130.68
4,449.76
195.99
4,399.19
195.99
4,702.59
371.17
4,652.02
371.17
4,331.42 - 4,280.85 -
371.17 371.17 371.17 371.17
Less than one year
Between one and five year
More than five years
PV of Minimum lease
Particulars
31-Mar-1831-Mar-19
Less: Amounts representing Finance
Total minimum lease payments
( in Lakhs )`
36.09 Disclosure as per Ind AS 12' Income Taxes' Tax Losses carried forward
31-Mar-19 Expiry Date 31-Mar-18 Expiry Date
a)Unabsorbed Depreciation 8,16,430.50 N.A. 8,05,563.30 N.A.
2,559.25 31.03.2021 2,559.25 31.03.2021
11,136.54 31.03.2022 11,136.54 31.03.2022
517.58 31.03.2024 1,14,231.09 31.03.2024
5,101.01 31.03.2025 5,101.01 31.03.2025
15,937.08 31.03.2026 15,937.08 31.03.2026
16,386.14 31.03.2027 - -
Unused Tax losses for which no deferred tax asset has been recognised
Particulars
b)Bussiness loss
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
214
36.10 Disclosure as per Indian Accounting Standards 107, Financial Instruments - Disclosure
A Financial Instruments by category
Trade Receivables - - 18,41,039.59
Cash and Cash equivalents - - 16,937.58
Other Bank Balances - - 9,193.32
Loan - - 350.44
Bank deposits with more than 12 months maturity - - 154.48
Subvention Receivable From State Govt. 12,075.11 - -
Investments - - 793.42
Other Financial Assets - - 2,14,136.04
Total Financial Assets 12,075.11 - 20,82,604.87
Particulars
FVTOCI
31.03.2019
FVTPL Amortized cost
( in Lakhs )`
Consolidated
Bonds - 85,000.00
Term Loans - 39,43,695.84
Security Deposits from Contractors - 70.02
Retention Money - -
Liability -Land lease rental - 326.66
Loans Repayable on Demand - 33,226.28
Other Loans and Advances 21,563.59
Other Financial Liabilities - 7,41,376.86
Trade Payables - 2,23,462.23
Total Financial Liability - 50,48,721.50
Particulars
Financial Liability
31.03.2019
FVTPL Amortized cost
( in Lakhs )`
Financial Assets - Trade Receivables - - 12,49,190.90
Cash and Cash equivalents - - 9,914.01
Other Bank Balances - - 5,720.91
Loan - - 353.08
Bank deposits with more than 12 months maturity - - -
Subvention Receivable From State Govt. 13,973.57 - -
Investments - - 376.90
Other Financial Assets - - 59,036.66
Total Financial Assets 13,973.57 - 13,24,592.45
Particulars
Financial Assets FVTOCI
31.03.2018
FVTPL Amortized cost
( in Lakhs )`
Financial Assets:
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
215
Bonds - 85,000.00
Term Loans - 34,62,649.29
Security Deposits from Contractors - 615.31
Retention Money - -
Liability -Land lease rental - 326.67
Loans Repayable on Demand - 11,133.15
Other Loans and Advance - 96,000.00
Other Financial Liabilities - 5,57,476.99
Trade Payables - 90,132.86
Total Financial Liability - 43,03,334.27
Particulars
Financial Liability
31.03.2018
FVTPL Amortized cost
( in Lakhs )`
Consolidated
B. Details of defaults during the period of principal and interest
There were no defaults made of Principal and Interest to PFC, REC, Commercial Banks and other Financial Institutions and Lenders during the F.Y. 2018-19 and FY 2017-18.
C. Financial Risk Management
Market Risk
Market Risk mainly relates to the investment & deposits. There is no regular business of Group for making
investment & deposits.However, work of W&M Section of the company is to manage the cash resources,
borrowings strategies and ensuring compliance of the same with the guidelines & directions of the Higher
Management.
Risk
Liquidity
risk
Market
risk, interest
rate risk
ManagementExposure arising from
Trade receivables, derivative
financialInstruments financial assets
measured at Amortised cost and
cash & cash equivalents
Credit
Risk
Credit limits, Escrow Cover, letters of credit and
diversification of bank deposits. Prefer nationalized
bank for deposit.
Availability of committed credit lines and borrowing
facilities
Rolling cash flows forecastBorrowing and other liabilities
Different kinds of loan arrangements with varied
terms (eg. Fixed, floating, rupee, foreign currency,etc.)& swaping of high cost debts into low cost debt.
Sensitivity analysis,
Cash Flow Analysis
Long-term Borrowings at
variable rates
Measurement
Credit ratings
Ageing analysis, Credit Ratings
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
216
Interest Rate Risk
ParticularsS.
No.As at
31.03.2018As at
31.03.2019
Fixed rate borrowings
1 Unsecured Bonds 85,000.00 85,000.00
2 Loans from Banks 18.63 26.34
3 Loans from others 4,36,637.85 4,81,330.85
Total 5,21,656.48 5,66,357.19
Floating rate borrowings
1 Unsecured Bonds - -
2 Loans from Banks 6,61,666.33 4,67,500.00
3 Loans from others 32,48,525.80 27,61,400.73
Total 39,10,192.13 32,28,900.73
Grand Total 44,31,848.61 37,95,257.92
( in Lakhs )`
Credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligations
as agreed. The entire generation of power is sold to three DISCOMS which are state govt.
undertakings. To manage this, the Company based on the past experience periodically assesses
the minimum amount of escrow cover i.e. 55% of previous month Energy Bills have been
established to minimise the credit risk that will be recovered from Discoms and same is to be
reviewed from time to time as per position/adging of the receivables accordingly at the level of
Higher Management.
Liquidity Risk
Liquidity risk is the risk that the Group/edging will encounter difficulty in meeting the
obligations associated with its financial liabilities that are settled by delivering cash or another
financial asset. The Group’s approach is to ensure liquidity of funds to meet its
liabilities/obligations when they are due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group reputation. The Group has a
separate section i.e. W&M responsible for liquidity, funding etc. In addition, processes and
policies related to such risks are overseen by Higher Management. Management monitors the
Company's net liquidity position through rolling forecasts on the basis of expected cash flows.
D. The following are the contractual maturaties of financial liabilities based on
contractual cash flows:
Consolidated
Unsecured Bonds - - - 85,000.00 85,000.00
Loans from banks 1,78,977.64 2,26,528.95 2,56,159.75 - 6,61,666.34
Loans from others 2,54,434.55 2,89,886.55 10,48,864.21 21,22,256.38 37,15,441.69
Trade and other Payables 7,64,270.87 54.55 145.96 195.99 7,64,667.37
Contractual maturities offinancial liabilities Less than
1 year1-2 years 2-5 years
Contractual cash flows
more than 5Years
Total
( in Lakhs )` 31.03.2019
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
217Consolidated
Unsecured Bonds - - - 85,000.00 85,000.00
Loans from banks 44,904.67 1,14,512.91 73,745.66 18.97 2,33,182.21
Loans from others 1,98,782.64 1,49,955.67 4,66,049.19 14,94,920.24 23,09,707.74
Trade and other Payables 5,77,745.51 591.87 154.12 195.98 5,78,687.48
Contractual maturities offinancial liabilities Less than
1 year1-2 years 2-5 years
Contractual cash flows
more than 5Years
Total
( in Lakhs )` 31.03.2018
E. The Company has access to the following undrawn facilities at the end of reporting period
Particulars31.03.201831.03.2019
( in Lakhs )`
Floating Rate Borrowings
Loans from Banks - 62,500.00
Loans from others 2,36,656.92 33,287.69
Particulars 31.03. 9201 31.03.2018
Total Debt 45,51,980.11 38,93,863.75
Equity 5,72,598.75 5,14,702.52
Debt Equity Ratio 7.95 7.57
36.11 RVUNL is engaged in the generation of electricity and selling thereof to the Distribution Companies. Generation of electricity is one and single product.
Disclosure requirement as per Ind AS 108 ' Operating Segment':-
a) The company derives revenue from transactions with a single external customer amounting to 10% or more.
b) The aggregate amount of sale to these customers are `14,79,013.52 Lakhs (P.Y. ̀ 13,16,385.32 Lakhs).
36.12 Disclosure pursuant to Ind AS 113 - Fair Value Measurement
Fair Value Hierarchy:
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are:-
(a) recognised and measured at fair value and
(b) measured at amortised cost and for which fair values are disclosed in financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table:
( in Lakhs )`
F. Capital ManagementNote on Capital Management: For the purpose of Group's Capital Management , Capital includes issued equity share capital ,State Government guranteed, non- convertible redeemable Bonds and borrowings from various financial institutions. The primary objective of Group's Capital Management is to maximize shareholder's value and to maintain an appropriate capital structure of debt and equity. The Group manages it's capital structure and makes adjustments in the light of changes in economic environment and the requirements of financial covenants.
The company manages it's capital using Debt to Equity Ratio which is Total Debt/Total Capital
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
218
Financial assets and liabilities measured at fair valueAs at 31 March 2019
Financial Assets:
Subvention receivable - - 12,075.11
Level 1 Level 2 Level 3
( in Lakhs )`
Financial assets and liabilities measured at fair valueAs at 31 March 2018
Financial Assets:
Subvention receivable - - 13,973.57
Level 1 Level 2 Level 3
( in Lakhs )`
Fair Values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
Fair value of financial assets and liabilities measured at amortised cost
1) The carrying amount of bonds is equivalent to their fair value .
2) The fair values for loans,borrowings and non current deposits are calculated based on cash flows discounted at current discount rate. Fair values confer with their respective amortised costs.
3) The carrying amounts of short term trade receivables and trade payable, cash and cash equivalents and other financial assets and liabilities are considered as their fair value due to short term nature.
36.13 Disclosure as per Ind AS 115, 'Revenue from contracts with customers'
I. Nature of goods and services
The revenue of the Group comprises of income from energy sales. The following is a description of the principal activities:
(a) Revenue from energy sales
The major revenue.of the Company comes from energy sales. The Company sells electricity to bulk customers i.e. electricity utilities owned by Rajasthan State Government. Sale of electricity is generally made pursuant to long-term Power Purchase Agreements (PPAs) entered into with the beneficiaries. Below are the details of nature, timing of satisfaction of performance obligations and significant payment terms under contracts for energy sales:
Product/
Service significant payment terms
Energy sales The Group recognises revenue from contracts for energy sales over time as the customers simultaneously receive and consume the benefits provided by the Company. The tariff for computing revenue from energy sales is determined in terms of RERC Regulations as notified from time to time. The amount of revenue recognised for energy sales is adjusted for variable consideration, wherever applicable, which are estimated based on the historical data available with the Company. The amounts are billed on a monthly basis and are payable as per the RERC tariff Regulations.
II Disaggregation of Revenue
In the following table, revenue is disaggregated by type of product and services and timing of revenue recognition:
Nature, timing of satisfaction of performance obligations and
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
219
Particulars
Particulars
Timing of Revenue Recognition
Point of time - -
Over a period of time 14,43,842.93 12,78,410.99
Total 14,43,842.93 12,78,410.99
* The Group has applied Ind AS 115 using Cumulative Effect Method. Under this method the comparative information is not restated.
III Reconciliation of revenue recognized with contract price:
Contract Price
Adjustments for Rebates -
Revenue Recognized 14,43,842.93
IV Contract Balances
Contract assets are recognized when there is excess of revenue earned over billings on contracts. Contract assets are transferred to unbilled revenue when there is unconditional right to receive cash and only passage of time is required, as per contractual terms. The contract liabilities primarily relate to the advance consideration received from the customers which are referred as 'advance from customers.
The following table provides information about trade receivables, unbilled revenue and advance from customers:
14,43,842.93
(` )in Lakh
(` )in Lakh
st31 March, 2019
st31 March, 2018
st Asat31 March, 2019
Generation of Energy
ParticularsAs at 1st April 2018**As at 31st March, 2019
Trade Receivables 18,41,039.59 - 11,24,060.29 -
Unbilled Revenue 1,54,497.24 - 1,37,379.35 -
Advance from Customers - - - -
** The company has applied Ind AS 115 using cumulative effect method. Under this method comparative figures are not restated.
The amount of revenue recognized in FY 2018-19 from performance obligations satisfied (or partially satisfied) in previous periods, mainly due to change in transaction prices is ̀ Nil.
There have been no significant changes in unbilled revenue and advances from customers during the year ended 31st March, 2019.
V. Transaction price allocated to the remaining performance obligations
Performance obligations related to sale of energy: Revenue from sale of energy is accounted for based on tariff rates approved by the RERC (except items indicated as provisional) as modified by the orders of Appellate Tribunal for Electricity to the extent applicable. In case of power stations, where the tariff rates are yet to be approved/items indicated provisional by the RERC in their orders, provisional rates are adopted considering the applicable RERC Tariff Regulations. Revenue from sale of energy is recognized once the electricity has been delivered to the beneficiary and is measured through a regular review of usage meters. Beneficiaries are billed on a periodic and regular basis. Therefore, transaction price to be allocated to remaining performance obligations cannot be determined reliably for the entire duration of the contract.
( in Lakhs )`
Current CurrentNon Current Non Current
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
220Consolidated
Current Year Previous Year
Not Applicable Not Applicable
6,617.35 5,957.35
Particulars
Licensed capacity (MW)
Installed Capacity (MW)
36.19 a) Quantitative information in respect of Generation and Sale of Electricity:
(in Million Unit)
ParticularsAux.
ConsumptionUnits
GeneratedNet Units
Sold
A.Commercial Period
Coal 30,644.35 2,798.66 27,845.70 (25,120.22) (2,371.91) (22,748.31)
Gas 1,018.98 61.36 957.62 (1,696.85) (95.26) (1,601.59)
Hydel 121.79 1.34 120.46 (191.45) (1.49) (189.96)
Sub-Total (A) 31,785.13 2,861.35 28,923.78 (27,008.52) (2,468.66) (24,539.87)
B. Pre-commercial Period 1,016.53 102.96 913.56 (1,378.85) (146.00) (1,232.85)
GRAND TOTAL (A+B) 32,801.66 2,964.32 29,837.34 (28,387.37) (2,614.66) (25,772.71)
b) Quantitative information in respect of Sale of Fly Ash:
(QTY in MT)
31.03.2019 31.03.2018
31,45,534.00 44,03,370.00
VI Practical expedients applied as per Ind AS 115:.
a. The company has not disclosed information about remaining performance obligations that have original expected duration of one year or less and where the revenue recognised corresponds directly with the value to the customer of the entity's performance completed to date.
b. The Company does not /expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group has not adjusted any of the transaction prices for the time value of money.
VII The Company has not incurred any incremental costs of obtaining contracts with a customer and therefore, not recognised an asset for such costs.
VIII The Company adopted Ind AS 115 using the cumulative effect method and therefore the comparatives have not been restated and continues to be reported as per Ind AS 11 and Ind AS 18. On account of adoption of Ind AS 115, no cumulative adjustment was required as at I April 2018, Further, no financial statement line items are affected in the current year as a result of applying Ind AS 115 as compared to Ind AS 11 and Ind AS 18.
36.14 a) No earning in foreign exchange was accrued during the year.
b) The Foreign Exchange outgo during the year was ̀ 2,389.48 Lakhs (P.Y ̀ 9197.50 Lakhs)
36.15 The Internal Audit of the company is conducted by the Company’s own Internal Audit wing.
36.16 The Trade receivables and Trade Payables balances are subject to reconciliation and confirmation.
36.17 As required by the Indian Accounting Standard (Ind AS-36) “Impairment of Assets” issued by the Ministry of Corporate Affairs, the company has carried out the assessment of impairment of assets. There are no external/internal indicators which lead to any impairment of assets during the year.
36.18 Licensed & installed capacities :-
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
221
36.20 Annual disclosure as per requirement of Listing Agreement for Debt Securities
With respect to Parent, Subsidiary and Associate Companies:
Consolidated
S. No.
Investments by the Loanee (Borrower) in the
shares of parent company and subsidiary
company, when the company has made a loan oradvance in the nature of Loan
c)
Particulars Remarks
a) Particulars of loans and advances in the nature ofloan to Subsidiary, Associates
Loan to GLPL - Subsidiary- 1, Lakhs ` 50,746.52
Loans and advances in the nature of loans wherethere is-
i) no repayment schedule or repayment beyondseven years
ii) no interest or interest below section 186 of theCompanies Act, 2013
There is no repayment schedule in case of loans andadvance given to GLPL - Subsidiary
Section 186 of the Companies Act, 2013 is notapplicable on Infrastructure Companies.
b)
(P.Y. 1,20,276.99 Lakhs)`
` NIL
36.21 Assets and liabilities are presented as current or non-current as per criteria set out in Schedule III
of The Companies Act, 2013. Based on the nature of the products, power generating process and
realisation, the company has ascertained its operating cycle of twelve months. Accordingly twelve
months period has been considered for the purpose of classification of assets and liabilities into
current and non-current.
36.22 Disclosure as per Ind AS 114 "Regulatory Deferral Accounts"
(i) Nature of rate regulated activities
The Group is mainly engaged in generation and sale of electricity. The price is to be charged by
the Company for electricity sold to its customers is determined by RERC which provides
extensive guidance on the principles and methodologies for determination of tariff for the
purpose of sale of elctricity.This form of rate regulation is known as cost-of-service regulation
which provides the company to recover its costs of providing the goods or services plus a fair
return.The company is eligible to apply Ind AS 114, Regulatory Deferrral Account. The
standard permits an eligible entity to continue previous GAAP (Guidance Note on Accouting
of Rate Regulated Activities) accounting policy for its regulatory deferral account balances.
Hence, Company has opted to continue with its previous GAAP accounting policy for such
balances.
(ii) Recognition and Measurement
RERC has sanctioned through vide order no. Petition No. RERC/483/14 dated 12.08.15 and
Petition No. RERC/481/14 dated 12.08.15 an additional capital cost for Unit-I amounting to
Rs. 3,017.55/- lacs and for Unit-II 10,616.00/- lacs. The additional cost has been shown as
regulatory assets in the books of accounts for both the units in accordance with the
“Guaidance Note on Accounting of Rate Regulated Activities”.The company has recognized
Regulatory Income in the statement of Profit & Loss account Rs. 2,433.52/- lacs for Unit I and
in case of unit II the same has been recognized as liability of RVUNL being expenditure
incurred by the RVUNL in earlier years and not transferred to the company. Hence,
Regulatory Assets in the Balance sheet has been recognized amounting to Rs. 10,951.20/-
lacs (net of Amortization upto march 2016).
GLPL has recognized as current liabilities in balance sheet payable to RVUNL Rs.
11,200.02/- lacs for the part of regulatory assets recognized for Unit-I Rs. 584.02/- lacs (on
proportionate basis) & Unit II Rs.10,616.00/- lacs booked. As per RERC norms GLPL has
assumed useful life of assets 25 years for amortizing regulatory assets over the period.
Further GLPL has claimed amortization amount to Rs. 1,720.66/- lacs from RVUNL which is
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
222
accumulated amortized value on behalf of Unit-II for the period from 2010-11 to 2014-15.
GLPL has booked as an expense in current year amortized value on regulatory assets in the
head 77.240 Amortization on regulatory assets and has been reduced from the gross value of
regulatory assets amounting to Rs. 537.04/- lacs for Unit-I and Rs. 2,145.30 lacs (i.e. Rs.
1,720.66/- lacs from 2011-12 to 2014-15 & Rs. 424.64/- lacs for the year 2015-16) for Unit-
II.
(iii) Risk associated with future recovery / reversal of regulatory deferral account balance.
(a) Regulatory risk on account of submission or approval of a rate setting application or the
entity's assessment of the expected future regulatory actions.
(b) Other risks including market risks, if any.
(iv) Reconciliation of carrying amounts
The regulated assets/liabilities recognised in the books to be recovered from or payable to the
beneficiaries in future periods are as follows:
Regulatory deferral account - debit balance (Note No.14)
(v) Total amount recognised in the Statement of (545.34) (545.34)
Profit and Loss
The Group expects to recover the carrying amount of deferral account balances in the useful life of
the project.
36.23 Disclosure as per Ind AS 1 "Presentation of financial statements"
Changes in significant accounting policies:
During the year, following changes to the accounting policies have been made:
a) Policy B.13 'Revenue from Operations' have been changed for improved disclosures and to
comply with disclosures related to Ind AS 115.
There is no impact on the financial statements due to the above changes, however, the policy
numbers have been rearranged in the current year as required.
36.24 Disclosure as per Ind AS 8 -'Accounting Policies, Changes in Accounting Estimates and
Errors' and Ind AS 1 'Presentation of financial statements'.
In Accordance with Ind AS 8 -'Accounting Policies, Changes in Accounting Estimates and Errors'
and Ind AS 1 'Presentation of financial statements', the Company has retrospectively reclassified its
Balance Sheet as at 31st March, 2018 and 1st April, 2017 (beginning of the precedding period) for
the reasons as stated in note below. Reconciliation of financial statement line items which are
retrospectively reclassified are as under:
Reconciliation of the restated items of the Balance Sheet as at 31st March 2018 and 1st April
2017
Consolidated
Particularsst31 March, 2019 st31 March, 2018
Opening Balances 9,860.52 10,405.87
Addition during the year - -
a) Transfer from RVUNL - -
b) Recognition for Rate Regulated Income during the year - -
Ammortisation during the year 545.34 545.34
Closing Balancs 9,315.18 9,860.52
( in Lakhs )`
As previously reported Adjustments As RestatedAs previously
reportedAdjustments As Restated
Trade
Receivables 9 12,49,190.90 (1,25,130.61)
11,24,060.29 11,01,230.68 (1,19,321.16)
9,81,909.52
Other
Current 12 60,935.12 1,25,130.60 1,86,065.72 56,826.39 1,19,321.16 1,76,147.55
31st March 2018
Particulars Note No
1st April 2017
( in Lakhs )`
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
223
Notes:-
a) Trade Receivables / Other Current Financial Assets
The Group inadvertently classified certain amounts representing the 'Unbilled Revenue' (in respect of
energy charges related to a financial year but which have been billed in the subsequent financial year)
under the head 'Trade Receivables'. During the year, the company re-classified the same and shifted
the said amounts from 'Trade Receivables' to 'Unbilled Revenue' under the head 'Current Financial
Assets - Others'. Accordingly, Rs. 1,25,130.61 Lakhs as at 31st March, 2018 and Rs. 1,19,321.16
Lakhs as at 1st April, 2017 has been re-classified from 'Trade Receivables' to 'Current Financial
Assets - Others'.
36.25 Disclosure as per Ind AS 8 'Accounting Policies,Changes in Accounting Estimates and Errors'
Recent accounting pronouncements: Standards issued but not yet effective:
IndAS 116 Leases:
On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind AS 116 will
replace the existing leases Standard, Ind AS 17 Leases, and related Interpretations. The Standard
sets out the principles for the recognition, measurement, presentation and disclosure of leases for
both parties to a contract i.e., the lessee and the lessor. Ind AS 116 introduces a single lessee
accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of
more than twelve months, unless the underlying asset is of low value. Currently, operating lease
expenses are charged to the statement of Profit & Loss. The Standard also contains enhanced
disclosure requirements for lessees. Ind AS 116 substantially carries forward the lessor accounting
requirements in Ind AS 17. The effective date for adoption of Ind AS 116 is annual periods beginning
on or after April 1, 2019. The standard permits two possible methods of transition:
? Full retrospective – Retrospectively to each prior period presented applying Ind AS 8 Accounting
Policies, Changes in Accounting Estimates and Errors.
? Modified retrospective – Retrospectively, with the cumulative effect of initially applying the
Standard recognized at the date of initial application.
Under modified retrospective approach, the lessee records the lease liability as the present value of
the remaining lease payments, discounted at the incremental borrowing rate and the right of use
asset either as:
Certain practical expedients are available under both the methods.
On completion of evaluation of the effect of adoption of IndAS116,the Company is proposing to use
the ‘Modified Retrospective Approach’ for transitioning to IndAS 116, and take the cumulative
adjustment to retained earnings, on the date of initial application(April1,2019). Accordingly,
comparatives for the year ended March 31, 2019 will not be retrospectively adjusted. The Company
has elected certain available practical expedients on transition.
The effect of adoption as on transition date would be insignificant.
Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments:
The standard permits two possible methods of transition –
i) Full retrospective approach – Under this approach, Appendix C will be applied retrospectively to
each prior reporting period presented in accordance with Ind AS 8 – Accounting Policies, Changes in
Accounting Estimates and Errors, without using hindsight, and
ii) Retrospectively with cumulative effect of initially applying Appendix C recognized by adjusting
equity on initial application, without adjusting comparatives.The effective date for adoption of Ind AS
12 Appendix C is annual periods beginning on or after April 1, 2019. The Company will adopt the
standard on April 1, 2019 and has decided to adjust the cumulative effect in equity on the date of
initial application i.e. April 1, 2019 without adjusting comparatives.The effect on adoption of Ind AS
12 Appendix C would be insignificant in the standalone financial statements.
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
224
Amendment to Ind AS 12 – Income taxes:
Amendment to Ind AS 12 – Income taxes: On March 30, 2019, Ministry of Corporate Affairs issued
amendments to the guidance in Ind AS 12, ‘Income Taxes’, in connection with accounting for
dividend distribution taxes. The amendment clarifies that an entity shall recognise the income tax
consequences of dividends in profit or loss, other comprehensive income or equity according to where
the entity originally recognised those past transactions or events. Effective date for application of this
amendment is annual period beginning on or after April 1, 2019. The Company is currently
evaluating the effect of this amendment on the standalone financial statements.
Amendment to Ind AS 19 – Plan amendment, curtailment or settlement-
The amendments require an entity:
• to use updated assumptions to determine current service cost and net interest for the remainder of
the period after a plan amendment, curtailment or settlement; and
• to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction
in a surplus, even if that surplus was not previously recognised because of the impact of the asset
ceiling.
Effective date for application of this amendment is annual period beginning on or after April 1, 2019.
The Company does not have any impact on account of this amendment.
Amendment to Ind AS 23 Borrowing Cost
The amendments to the guidance in Ind AS- 23 Borrowing Cost clarifies the following-
a) while computing the capitalisation rate for the funds borrowed generally, borrowing cost applicable
to borrowings meet specifically for obtaining the qualified asset should be excluded, only until the
asset is ready for its intended use or sale.
b) Borrowing Cost (related to specfic borrowing) that remains outstanding after the related qualifying
assset is ready for its intended use or sale would subsequently be considered as part of the general
borrowing cost.
Amendment to Ind AS 28 Investment in Associates & Joint Venture
The amendments to the guidance in Ind AS- 28 Investment in Associates & Joint Venture clarifies
that an entity applies Ind As 109 Financial instrument to long term interest in an associate or joint
venture that form part of the net investment in joint venture or associate but to which the equity
method is not applied.
Amendment to Ind AS 109 Financial Instrument
The amendment relates to the existing requirement in Ind As 109 Financial Instruments regarding
termination rights in order to allow measurement at amortised cost (or depending on the business
model, at Fair Value through Other Comprehensive Income) even in the case of negative compensatin
payments.
The company is evaluating the requirements of above amendments and the effects on the financial
statements.
Consolidated
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
225
36.26 Information in respect of micro and small enterprises as at 31 March 2019 as required by
Micro, Small and Medium Entereprises Development Act, 2006
Particulars 31-Mar-19 31-Mar-18
a) Amount remaining unpaid to any supplier:
Principal Amount - -
Interest due thereon
b) amount of interest paid in terms of Section 16 of MSMED Act
along with the amount paid to the suppliers beyond the - -
appointed day
c) Amount of interest due and payable for the period of delay
in makijng payment (which have been paid but beyond the - -
appointed day during the year) but without adding the interest
specified under the MSMED Act.
d) Amount of interest accrued and remaining unpaid - -
e) Amount of interest remaining due and payable even in
the succeeding years, until such date when the interest due as
above are actually paid to the small entereprises, for the - -
purpose of disallowances as a deductible expenditure under
Section 23 of MSMED Act
36.27 Disclosure as per Schedule III to the Companies Act ,2013
As % of consolidated
Net assetsAmount
As % of consolidated
profit or lossAmount
As % of consolidated
Other Comprehensive IncomeAmount
As % of Totalcomprehensive Income Amount
A. Parent
Rajasthan Rajya Vidyut Utpadan
Nigam Limited 89.66% 5,38,044.32
215.90% 59,604.47
100.00% (8,963.88)
271.63% 50,640.59
B. Subsidiaries
Rajasthan State Coal Mining Company Limited* -
Chabbra Power Limited 0.00% 0.20
0.00% (0.32)
0.00% -
0.00% (0.32)
Dholpur Gas Power Limited 0.00% (0.22)
0.00% (0.33)
0.00% -
0.00% (0.33)
Giral Lignite Power Limited 10.21% 61,274.50
(117.41)% (32,413.22)
0.00% -
(173.86)% (32,413.22)
C. Joint Venture Companies -
Parsa Kente Collieries Limited 0.13% 793.42
1.53% 423.42
0.00% 0.12
2.27% 423.54
Rajasthan Collieries Limited 0.00% - (0.03)% (7.10) 0.00% 0.08 (0.04)% (7.02)
Total 6,00,112.21 27,606.91 (8,963.68) 18,643.23
Share in other comprehensive income Share in Total Comprehensive IncomeNet Assets i.e total assets minus total liabilities
as at 31-03-2019Share in profit or loss
Name of the entity
( in Lakhs )`
For and on Behalf of the Board of Directors As per our separate report of even date
(P. Ramesh)Chairman & Managing Director
DIN : 03551794
( )Director
DIN : 03319346
S.S. Meena B.L. Ajmera & Co.Chartered Accountants
FRN-001100C
(Y.K. Upadhyay)Chief Controller of Accounts
(SGVS Subrahmanyam)Jt. Dir. (Corp. Aff.)-cum-
Company SecretaryM.No. FCS-3962
(Venkatesan Chandra Mouli)(Partner)
M.No.: 010054
Place : JaipurDate : 12-09-2019
36.28 Figures of the current & previous year have been rounded off to nearest Lakhs.
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
226
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA
UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE
CONSOLIDATED FINANCIAL STATEMENTS OF RAJASTHAN RAJYA VIDYUT
UTPADAN NIGAM LIMITED FOR THE YEAR ENDED 31 MARCH 2019.
The preparation of consolidated financial statements of Rajasthan Rajya Vidyut Utpadan Nigam
Limited for the year ended 31 March 2019 in accordance with the financial reporting framework
prescribed under the companies Act,2013 (Act) is the responsibility of the management of the
company. The Statutory Auditors appointed by the Comptroller and Auditor General of India
under section 139(5) of the Act are 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 12 September 2019.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary
audit of the consolidated financial statements of Rajasthan Rajya Vidyut Utpadan Nigam Limited
for the year ended 31 March 2019 under section 143(6)(a) read with section 129(4) of the Act. We
conducted a supplementary audit of the financial statements of Rajasthan Rajya Vidyut Utpadan
Nigam Limited, Chhabra Power Limited, Dholpur Gas Power Limited and Giral Lignite Power
Limited but did not conduct supplementary audit of the financial statements of Parsa Kente
Collieries Limited and Rajasthan Collieries Limited for the year ended on that date. Further,
section 139(5) and 143(6)(a) of the Act are not applicable to Parsa Kente Collieries Limited
and Rajasthan Collieries Limited being private entities for appointment of their Statutory
Auditor and for conduct of supplementary audit. Accordingly, Comptroller & Auditor
General of India has neither appointed the Statutory Auditors nor conducted the
supplementary audit of these companies. 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 record.
Based on my supplementary audit, I would like to highlight the following significant matters under
section 143(6)(b) read with section 129(4) of the Act which have come to my attention and which in
my view are necessary for enabling a better understanding of the financial statements and the
related audit report:
A. Comments on Profitability
Statement of Profit & Loss
(I) Income
Revenue from Operations (Note No.-26) - ` 14,438.43 Crore
The above is understated by ` 20.70 crore due to excess allocation and adustment in
Capital Work in Progress of late payment surcharge on infirm power in respect of Unit 5
and 6 of the Supercritical Thermal Power Plant, Chhabra. This has resulted in
understatement of Capital Work in Progress by ` 20.70 crore. Consequently, Profit has
been understated to the same extent.
(II) Expenses
(i) Generation and Other Direct Expenses (Note No. 28) ̀ 8,758.68 crore
The above is understated by ` 5.64 crore due to non-provision of liability towards track
access charges payable to M/s Sarguja Rail Corridor Private Limited (SRCPL) for a
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
227
shortfall of coal in the off-take quantity for the year 2015-16 which has been paid on 15
May, 2019 on the basis of decision (24 April, 2019) taken by the whole time directors of
the company. this has resulted in understatement of Trade Payables by `5.64 crore.
Consequently, Profit has been overstated to the same extent.
(ii) Depreciation and Amortization Expenses (Note No. 32) ̀ 1,396.84 crore
Clause 22 (4) of the Rajasthan Electricity Regulatory Commission (Terms and Condition
for Determination of Tariff) Regulations-2014 stipulates that depreciation shall be
calculated annually based on Straight Lime Method (SLM) at the rate 5.28% p.a. for
Plant and Machinery in generating station.Provided that the remaining depreciable
value as on 31st March of the year closing after a period of 12 years from date of
commercial operation shall be spread over the balance useful life of the assets. Further,
clause 2(69) provides that useful life of Coal/Lignite based thermal generating station
shall be 25 years. However, after the period of 12 years from the date of commercial
operation (31.03.2017), the company charged depreciation of ̀ 28.18 crore for the period
2017-19 on remaining depreciable value of Property, Plant and Equipment of Kota
Thermal Power Station, stage IV as per Straight Lime Method instead of spreading it over
the balance useful life (13 years) of the assets. this has resulted in overstatement of
Depreciation and Amortization Expenses by `14.09 crore (depreciation for the year
2018-19) and Other Equity by ` 14.09 crore (depreciation for the year 2017-18).
Consequently Property, Plant & Equipment and Profit has been understated by ̀ 28.18
crore and ̀ 14.09 crore respectively.
(iii) Finance Costs (Note No. 31) ̀ 3,258.05 crore
The above is understated by ̀ 16.51 crore due to non-provision of liability towards short
paid guarantee commission ( ̀ 15.67 crore) to the State Government for the year 2018-19
and penal interest (` 0.84 crore) thereon. This has resulted in understatement of Other
Current Liabilities and overstatement of Profit by ̀ 16.51 crore.
B. General
Other Non-Current Assets includes advance of ` 24.85 crore given to the suppliers/
contractors for capital goods in respect of Suratgarh Thermal Power Station which is pending
for adjustment since unbundling of Rajasthan State Electricity Board (RSEB). However, the
company has no records of the same. In the absence of relevant records, the veracity of
advance of ̀ 24.85 crore reflected in the books of accounts could not be vouchsafed.
Place: Jaipur
Date: 03.12.2019
Standalone
For and on the behalf of
The Comptroller and Auditor General of India
(Anadi Misra)
Accountant General
(Economic & Revenue Sector Audit)
Rajasthan, Jaipur
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
228
MANAGEMENT RESPONSE TO THE COMPTROLLER AND AUDITOR GENERAL OF INDIA
UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED
FINANCIAL STATEMENTS OF RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED FOR
THE YEAR ENDED 31 MARCH 2019.
A. Comments on Profitability
Statement of Profit & Loss
(I) Income
Revenue from Operations (Note No.-26) - `14,438.43 Crore
Observation noted. Necessary adjustment/rectification shall be made in the accounts
of F.Y. 2019-20.
(II) Expenses
(i) Generation and Other Direct Expenses (Note No. 28) ` 8,758.68 crore
Observation noted. Necessary care shall be taken in future.
(ii) Depreciation and Amortization Expenses (Note No. 32) ` 1,396.84 crore
It was an inadvertent error. Necessary rectification has been made in the
accounts of F.Y. 2019-20.
(iii) Finance Costs (Note No. 31) ` 3,258.05 crore
Observation noted. Necessary adjustment/rectification shall be made in the
accounts of F.Y. 2019-20.
B. General
Necessary directions have been issued to the respective unit officers to liquidate/adjust/
write off the above during the current financial year.
Standalone
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
229
( ? in Lakhs )
S. No 1 2 3
Name of the subsidiaryGiral Lignite
Power Ltd.
Dholpur Gas
Power Ltd.
Chhabra Power
Ltd.
1 The date since when subsidiary was acquired
(1.04.2018 -
31.03.2019)
(1.04.2018 -
31.03.2019)
(1.04.2018 -
31.03.2019)
3
Reporting currency and Exchange rate as on the last
date of the relevant Financial year in the case of foreign
subsidiaries
NA NA NA
4 Share capital 37,005.00
5.00
5.00
5 Reserves & surplus (126477.02) (4.19)
(4.10)
6 Total assets 1,03,155.65
1.26
1.35
7 Total Liabilities 1,92,627.67
0.45
0.45
8 Investments - - -
9 Turnover (4,902.00)
- -
10 Profit before taxation (32,413.22)
(0.33)
(0.32)
11 Provision for taxation - - -
12 Profit after taxation (32,413.22)
(0.33)
(0.32)
13 Proposed Dividend - - -
14 % of shareholding 100.00% 100.00% 100.00%
1. Chhabra Power
Ltd.
2. Dholpur Gas
Power Ltd.2 -
Notes:
1 Names of subsidiaries which are yet to commence operations
Names of subsidiaries which have been liquidated or sold during the year.
Form AOC-1
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures of
RVUN Ltd.
Part “A”: Subsidiaries
2Reporting period for the subsidiary concerned, if
different from the holding company’s reporting period
Same as that of Holding Company
ANNUAL REPORT 2018-19 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.
230
S.No. Name of Joint VenturesParsa Kente
Collieries Ltd.
Rajasthan
Collieries Ltd.
1 31.03.2019 31.03.2019
2
- 1,30,000 1,30,000
- 1 1
26% 26%
3 NA NA
4 NA NA
5 891.61 -
6
I 423.42 -7.02
II - -111.99
1 NIL
2 NIL
Part “B”: Associates and Joint Ventures
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
Latest audited Balance Sheet Date
Shares of Joint Ventures held by the company on the year end
In Nos.
Amount of Investment in Joint Venture
Description of how there is significant influence
Reason why the joint venture is not consolidated
Net worth attributable to shareholding as per latest audited Balance
Profit/Loss for the year
Extent of Holding %
Considered in Consolidation (? in Lakhs )
Not Considered in Consolidation
Notes:
Names of associates or joint ventures which are yet to commence operations.
Names of associates or joint ventures which have been liquidated or sold during the year.
For and on Behalf of the Board of Directors As per our separate report of even date
(P. Ramesh)Chairman & Managing Director
DIN : 03551794
( )Director
DIN : 03319346
S.S. Meena B.L. Ajmera & Co.Chartered Accountants
FRN-001100C
(Y.K. Upadhyay)Chief Controller of Accounts
(SGVS Subrahmanyam)Jt. Dir. (Corp. Aff.)-cum-
Company SecretaryM.No. FCS-3962
(Venkatesan Chandra Mouli)(Partner)
M.No.: 010054
Place : JaipurDate : 12-09-2019
Subsidiary Companies
of
RRVUNL
th13 ANNUAL REPORT
CHHABRA POWER LIMITED(A wholly owned subsidiary of Rajasthan Rajya Vidyut Utpadan Nigam Ltd.)
2018-19
Contents
S.No.
Particulars PageNos.
1. Board's Report 235-246
2. Statutory Auditors Report 247-253
3. Financial Statements along 254-264with Significant AccountingPolicies & Notes on Accounts
4. Supplementary Audit Report 265
1. Sh. P. Ramesh, IAS - Chairman(DIN: 03551794)
2. Sh. S S Meena - Director(DIN: 03319346)
3. Sh. P S Arya - Director(DIN: 07646220)
BOARD OF DIRECTORS(As on AGM)
AUDITORS
M/s P.C. Modi & Co.Chartered AccountantsR-20, Yudhister Marg, C-Scheme, Ashok Nagar,Jaipur-302001 Ph.: 0141-4018502
BANKERSTATE BANK OF INDIA
REGD. OFFICE & HEAD OFFICEVIDYUT BHAWANJANPATH, JYOTI NAGAR, JAIPUR-302005PhoneFaxWebsite
0141-27406920141-2740633energy.rajasthan.gov.in
:::
BOARDS’ REPORT
To the Members,
thYour Directors are pleased to present the 13 Annual Report on the business and affairs of the stCompany together with the Audited statement of Accounts for the financial year ended 31 March,
2019.
1. Financial Review
No commercial activity has been carried out during the financial year under review, however,
the expenses/income during the year has been charged to the Statement of Profit & Loss. The
Company has incurred loss of Rs.31,736 /- in the financial year 2018-19 against the loss of
Rs.29,345/- in the previous year 2017-18.
2. Transfer to Reserves
During the period under review, the Company is not proposing to carry any amount to
reserves.
3. Dividend
As no profit was earned during the year, the Board is unable to recommend payment of
dividend for the year.
4. Share Capital
The Authorized Share Capital of the Company remains Rs.1 Crore divided into 10,00,000
Equity Shares of Rs.10/- each. The paid-up Share Capital of the Company is 50,000 fully
paid-up Equity Shares of Rs.10/- each aggregating to Rs.5,00,000/- held by the holding
company, Rajasthan Rajya Vidyut Utpadan Nigam, Ltd. and seven other members as
nominees of the holding company.
5. Change in the nature of business, if any
No commercial activity has been carried out during the financial year under review and no
change has been made in the nature of business of the Company.
6. Material changes
In terms of Section 134(3)(l) of the Companies Act, 2013, there have been no material changes
and commitments affecting the financial position of the Company between the end of the
financial year and the date of this report.
7. Significant and material orders
No significant or material orders were passed by the Regulators or Courts or Tribunals which
impact the going concern status and Company’s operation in future.
8. Report on Performance of Subsidiaries, Associates and Joint Venture Companies
There are no Subsidiaries, Associate and Joint Venture Companies of the Company.
9. Particulars of Loans, Guarantees, Investments and Securities
There are no loans given, investments made, guarantees given and securities provided during
the year.
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
235
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
236
10. Directors and Key Managerial Personnel
As per Articles of Association of the Company, Rajasthan Rajya Vidyut Utpadan Nigam Ltd.,
(RVUN), being the Holding Company is empowered to appoint / replace / remove all Directors
of the Company.
During the period under review, Shri P. Ramesh, IAS (DIN-03551794) has been appointed
and assumed charge as Chairman & Managing Director of RVUN (holding company of DGPL)
w.e.f. 30.11.2018 and accordingly became the Ex-officio Chairman of the Company as per
Articles of Association of Company, in place of Shri N K Kothari (DIN-07649438) who ceased
to be Ex-officio Chairman of the Company.
Further, Shri Gopal Jasoria (DIN-07686384) and Shri M L Gupta (DIN-07580613), ceased to
be the Directors of the Company.
The present constitution of the Board is given below –
1. Shri P. Ramesh, IAS Chairman
2. Shri S S Meena Director
3. Shri P S Arya Director
11. Auditors
The Comptroller & Auditor General of India appointed M/s P.C. Modi & Co., Chartered
Accountants, Jaipur as the Statutory Auditors of the Company, for the financial year 2018-
19. There are no comments/ observations made by the Statutory Auditors on the accounts of
the Company for the financial year ended 31.3.2019. The report/ comments of the
Comptroller & Auditor General of India will be circulated separately.
12. Deposits
The Company has not accepted or renewed any amount falling within the purview of
provisions of Section 73 of the Companies Act 2013 (“the Act”) read with the Companies
(Acceptance of Deposit) Rules, 2014 during the year under review. Hence, the details relating
to deposits as also requirement for furnishing of details of deposits which are not in
compliance with Chapter V of the Act is treated as NIL.
13. Extract of the annual return
The details forming part of the Extract of the Annual Return in Form MGT-9, as required
under Section 92 of the Companies Act, 2013 is included in this Report as Annexure-I and
forms part of this Report.
14. Particulars of Contracts or Arrangement with Related Parties
There are no contracts or arrangements with related parties referred to in sub-section (1) of
section 188.
15. Corporate Social Responsibility
The provisions of Section 135 of Companies Act, 2013 regarding Corporate Social
Responsibility are not applicable on the Company.
16. Board Meetings
During the financial year 2018-19, following meetings of the Board of Directors of the
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
237
Company were held as detailed below:
S. Number and date Board’s Number of
No. of Meeting Strength Directors present
th1. 46 Board Meeting held on 10.04.2018 5 5
th2. 47 Board Meeting held on 30.07.2018 4 4
th3. 48 Board Meeting held on 26.11.2018 4 4
th4. 49 Board Meeting held on 25.03.2019 4 3
17. Directors’ Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013, the Directors to the best of their
knowledge and belief confirm that:
i) in the preparation of the annual accounts, the applicable accounting standards had
been followed along with proper explanation relating to material departures;
ii) such accounting policies have been selected and applied them consistently and such
judgments and estimates have been made that are reasonable and prudent so as to give
a true and fair view of the state of affairs of the Company as at end of financial year and of
the profit of the Company 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 Company and for preventing and detecting fraud and other
irregularities;
iv) the annual accounts have been prepared on a going concern basis; and
v) proper systems have been devised to ensure compliance with the provisions of all
applicable laws and that such systems were adequate and operating effectively.
18. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and
Outgo
Since no commercial activity has been carried out by the Company during the financial year,
there are no particulars in respect of conservation of energy, technology absorption and
foreign exchange earnings & outgo.
19. Employees’ Remuneration
None of the employees of the Company is covered under the provisions of Rule 5(2) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
20. Risk Management
Since no commercial activity has undertaken by the Company, there is no need for
development and implementation of a risk management policy for the Company including
identification therein of elements of risk, which in the opinion of the Board may threaten the
existence of the company.
21. Acknowledgement
The Directors wish to place on record their appreciation of the support received from the
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
238
Government of Rajasthan, especially the Departments of Energy, Finance, etc. apart from the
holding company, Rajasthan Rajya Vidyut Utpadan Nigam Ltd.
Date : 29-08-2019
Place: Jaipur
On behalf of the Board of Directors
P. Ramesh, IAS
DIN- 03551794
Chairman
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
239
Annexure-I
CHHABRA POWER LIMITED
FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN
As on the financial year ended on 31 March 201
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
1. Registration and Other Details:
1. CIN U40109RJ2006SGC023353
nd2. Registration Date 22 November, 2006
3. Name of the Company Chhabra Power Limited
4. Category/Sub-Category Category - Company Limited by Shares of the company Sub-Category- State Government Company
5. Address of the Registered Vidyut Bhawan, Janpath, Jyoti Nagar,office and contact details Jaipur- 302005
6. Whether Listed Company No
7. Name Address and Contact Not Applicable Details of Registrar and Transfer Agent, if any
2. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-
S. Name and Description of main NIC Code of % to total turnover
No. products / services the Product/ of the company
service
1. Generation of Electricity 35102 No commercial activityhas been carried outduring the financial year
3. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANY
S. Name and Address of CIN/GLN Holding/ Subsidiary/ % of Applicable
No. the Company Associate shares Section
held
1. Rajasthan Rajya U40102RJ2000SGC016484 Holding Company 100 2 (46)Vidyut Utpadan Vidyut Bhawan, Janpath, Jyoti Nagar, Jaipur-302005
st 9
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
240
4. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)i Category-wise Share Holding
CATEGORY OF
SHAREHOLDERS the year Change
during
the year
Demat Physical Total % of Demat Physical Total % of
Total Total
Shares Shares
(A)PROMOTERS
(1) INDIAN
(a)Individual /HUF - - - - - - - - -
(b)Central - - - - - - - - - Government
(c)State - - - - - - - - - Government
(d)Bodies NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL Corporate
(e)Financial - - - - - - - - -Institutions / Banks
(f) Others - - - - - - - - -
Sub-Total A(1) : NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL
(2)FOREIGN
(a)Individuals - - - - - - - - -(NRIs/Foreign Individuals)
(b) Bodies - - - - - - - - -Corporate
(c) Institutions - - - - - - - - -
(d) Qualified - - - - - - - - -Foreign Investor
(e)Others - - - - - - - - -
Sub-Total A(2) : - - - - - - - - -
Total A=A(1)+A(2) NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL
(B)PUBLIC SHAREHOLDING
(1)INSTITUTIONS
(a)Mutual Funds - - - - - - - - -/UTI
(b)Financial - - - - - - - - -Institutions /Banks
(c)Central - - - - - - - - -Government
(d)State - - - - - - - - -Government
(e) Venture - - - - - - - - -Capital Funds
(f) Insurance - - - - - - - - -Companies
(g)Foreign - - - - - - - - -Institutional Investors
(h)Foreign - - - - - - - - -Venture Capital
No. of Shares held at the No. of Shares held at the end %
beginning of of the year
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
241
Investors
(i) Others - - - - - - - - -
Sub-Total B(1) : - - - - - - - - -
(2) NON-INSTITUTIONS
(a) Bodies - - - - - - - - - Corporate
(b)Individuals - - - - - - - - -
(i) Individuals holding nominal - - - - - - - - - share capital upto Rs.1 lakh
(ii) Individuals holding nominal share capital in - - - - - - - - - excess of Rs.1 lakh
(c) Others - - - - - - - -
CLEARING - - - - - - - - -MEMBERS
NON RESIDENT - - - - - - - - -INDIANS
(d) Qualified - - - - - - - - -Foreign Investor
Sub-Total B(2) : - - - - - - - - -
Total Public Shareholding
Total B=B(1)+B(2) - - - - - - - - -
Total (A+B) : NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL
(C) Shares held by custodians, - - - - - - - - - against GDRs ADRs
GRAND TOTAL (A+B+C) : NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL
Sr. No
Shareholder’s Name
Shareholding at the beginning of the year
Shareholding at the end of the year
No. of shares
% of total Shares of the Company
%of Shares Pledged / encumbered to total shares
No. of shares
% of total Shares of the company
%of Shares Pledged / encumbered to total shares
% change in share holding during
the year
ii. Shareholding of Promoters
1 Rajasthan Rajya
Vidyut Utpadan
Nigam Limited
2 Sh. Nageen Kumar 1 NIL NIL NIL NIL NIL NIL
Kothari
3 Dr. Murari Lal 1 NIL NIL 1 NIL NIL NIL
Gupta
4 Sh. Shyam 1 NIL NIL 1 NIL NIL NIL
Swaroop Meena
5 Sh. P S Arya 1 NIL NIL 1 NIL NIL NIL
6 Sh. A K C 1 NIL NIL NIL NIL NIL NIL
Bhandari
7 Sh. Alok Sharma 1 NIL NIL 1 NIL NIL NIL
8 Sh. Manoj Kumar 1 NIL NIL 1 NIL NIL NIL
Khandelwal
9. Sh. P. Ramesh NIL NIL NIL 1 NIL NIL NIL
10. Sh. Y K Upadhyay NIL NIL NIL 1 NIL NIL NIL
Total 50,000 100 NIL 50,000 100 NIL NIL
Note: 100% Shares held in the company by Rajasthan Rajya Vidyut Utpadan Nigam Limited (holding
company). Shareholders other than Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUN) are
registered shareholders and nominees of RVUN.
49,993 100 NIL 49,993 100 NIL NIL
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
242
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
243
iii.Change in Promoters’ Shareholding (please specify, if there is no change): No Change
1.
Government of Rajasthan
Shareholding at the beginning of the year
Cumulative Shareholding during the year
No. of shares % of total shares of the company
No. of shares % of total shares of the company
At the beginning of the year
50,000 100 50,000 100
Date wise Increase /
Decrease in Promoters Share
Holding during the year
specifying the reasons for
increase/Decrease (e.g.
allotment / Transfer /
Bonus/ Sweat equity etc.)
NIL
At the end of the year 50,000 100 50,000 100
iv. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs): NIL
Sl. No.
Shareholding at the of the year
beginning
Cumulative Shareholding during the year
For each of the Top 10
Shareholders
No. of Shares
% of total shares of the
company
No. of Shares
% of total shares of the
company
At the beginning of the year
Date wise Increase / Decrease in
Promoters Share Holding during the
year specifying the reasons for
increase/Decrease (e.g. allotment /
Transfer / Bonus/ Sweat equity etc.)
NIL
At the end of the year (or on the date
of separation, if separated during the
year)
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
244
v. Shareholding of Directors and Key Managerial Personnel: NIL
Sl. No.
Shareholding of each and each Key Managerial
Personnel
director
Shareholding at the beginning of the year
Cumulative Shareholding during the year
No. of Shares
% of total shares of the company
No. of Shares
% of total shares of the company
At the beginning of the year - - - -
Date wise Increase / Decrease
in Promoters Share Holding
during the year specifying the
reasons for increase/Decrease
(e.g. allotment / Transfer /
Bonus/ Sweat equity etc.)
- - - -
At the end of the year - - - -
5.INDEBTEDNESSIndebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans excluding deposits
Unsecured Loans
Deposits Total Indebtedness
Indebtedness at the beginning of the year
i. Principal Amount
NIL NIL NIL NIL
ii. Interest due but not paid
-- -- -- --
iii. Interest accrued but not paid
-- -- -- --
Total (i+ii+iii) NIL NIL NIL NIL Change in Indebtedness during the financial year
? Addition ? Reduction
-- -- -- --
Net Change -- -- -- --
Indebtedness at the end of the year
i. Principal Amount
NIL NIL NIL NIL
ii. Interest due but not paid
-- -- -- --
iii. Interest accrued but not paid
-- -- -- --
Total (i+ii+iii) NIL NIL NIL NIL
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
245
6. Remuneration of Directors and Key Managerial Personnel:
(A) Remuneration to Managing Director, Whole-Time Directors and/or Manager: NIL
Sr. No
Particulars of Remuneration Name of MD/WTD/Manager Total Amount
1. Gross Salary -- --
(a) Salary as per provisions contained in section 17(1) of the Income Tax Act
-- -- -- --
(b) Value of perquisites u/s 17(2) Income Tax Act, 1961
-- -- -- --
(c) Profits in lieu of salary under Section 17(3) IncomeTax Act, 1961
-- -- -- --
2. Stock Option -- -- -- --
3. Sweat Equity -- -- -- --
4. Commission
-As % of profit
-Others, specify
-- -- -- --
5. Others, please specify -- -- -- --
Total (A)
--
--
--
--
Ceiling as per the Act
--
(B) Remuneration to Other Directors: NIL
Sr. No
Particulars of Remuneration Name of Directors Total Amount
1. Independent Directors
(a) Fees for attending board committee meetings
- - - -
(b) Commission - - - -
(c) Other, please specify - - - -
Total (1) - - - -
2. Other Non Executive Directors
(a) Fees for attending board committee meetings
- - - -
(b) Commission - - - -
(c) Other, please specify - - - -
Total (2) - - - -
Total (B) = (1+2) - - - -
Total Managerial Remuneration - - - -
Overall Ceiling as per the Act - - - -
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
246
(C) Remuneration to Key Managerial Personnel Other Than MD/ Manager/ WTD
Sr. No
Particulars of Remuneration Name of Key Managerial Personnel Total Amount
1. Gross Salary NIL NIL
(a) Salary as per provisions contained in section 17(1) of the Income Tax Act
NIL NIL
(b) Value of perquisites u/s 17(2) Income Tax Act, 1961
NIL NIL
(c) Profits in lieu of salary under Section 17(3) Income Tax Act, 1961
NIL NIL
2. Stock Option NIL NIL
3. Sweat Equity NIL
4. Commission - As % of profit - Others (Variable Pay)
NIL NIL
5. Others, please specify NIL NIL
Total (A) NIL NIL
7. PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES
Type Section of the Companies
Act
Brief Descriptio
n
Details of Penalty /
Punishment/ Compounding fees imposed
Authority [RD / NCLT / COURT]
Appeal made, if any (give
Details) A. COMPANY Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
B. DIRECTORS Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
C. OTHER OFFICERS IN DEFAULT Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
For Chhabra Power Limited
P. RameshChairman
DIN-03551794
Place : JAIPURDate : 29-08-2019
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
247
Independent Auditor’s Report
To The Members of Chhabra Power Limited
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Chhabra Power Limited (“the company”), which comprises the Balance Sheet as at March 31, 2019, the statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year the ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as ‘Ind AS financial statements’).
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 and presentation of these Ind AS financial statements that give a true and fair view of the financial position, State of Affairs (financial position) and Profit and Loss (financial performance including other comprehensive income), cash flows and changes in equity of the company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act., read with Rule 7 of the companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015, as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS 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 Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as 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 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 judgement, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the Ind AS 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 Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
248
Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in comformity with the accounting principles generally accepted in India, of the state of affairs (financial position) of the Company as at March 31, 2019, its loss (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As the Company is governed by the Electricity Act 2003, the provisions of the Act have prevailed wherever the provisions of the companies Act, 2013 are inconsistent with said Electricity Act, 2003.
2. 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 give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
3. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion, proper books of accout as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, Statement of Profit and Loss including the Statement of Other Comprehensive Income, the cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, Companies (Indian Accounting Standards) Rules, 2015, as amended.
e) On the basis of written representation received from the directors as on March 31, 2019, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2019, from being appointed as a director in terms of section 164(2) of the Act;
f) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Comapanies (Audit and Auditors) Rules, 2014, as amended, 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 Ind AS financial statements;
(ii) The company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
(iii) There were no amounts which were required to be transferred to the investor Education and Protection Fund by the Company;
As required by the Companies Act, 2013 under section 143(5), we give in the Annexure B, a statement on the compliance to the Directors issued by C&AG.
For P.C. Modi & Co.Chartered AccountantsFRN: 000239C
Anirudh Singh(Partner)M. No.: 418686
Place: JaipurDate: July 10, 2019
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
249
ANNEXURE-A
Annexure refered to in our reports to the members of the company on the standalone Ind AS
financial statements for the year ended March 31, 2019 we report that:
(i) The company does not have any fixed assets and therefore;
a) Not applicable, being no fixed assets.
b) Not applicable, being no fixed assets.
c) Not applicable, being no immovable property.
(ii) The Company has not so far made any purchases and does not posses any inventory
therefore clause 3(ii) of the order is not applicable to the Company.
(iii) According to the information and explanations given to us, the Company has not granted any
loan, 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.
Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the order are not applicable to the
Company and hence not commented upon.
(iv) According to the information and explanations given to us, there are no loans, investments,
guarantees and securities given in respect of which provisions of section 185 and 186 of the
Companies Act 2013 are applicable and hence not commented upon.
(v) Not being applicable, company has not accepted deposits from the public.
(vi) The company has not started its operations therefore requirement of maintenance of cost
records not applicable on company.
(vii) According to the information and explanations given to us, in respect of statutory dues since
the company has not started any operational activity, there are no disputed statutory dues
payable.
(viii) The company does not have any loans or borrowings from any banks, financial institution,
and government or debenture holders during the year. Accordingly paragraph [h3 (viii) of the
order is not applicable.
(ix) The company did not raise any money by way of initial public offer (including debt
instruments) and term loans during the year. Accordingly paragraph 3(ix) of the order is not
applicable.
(x) To the best to our knowledge and according to the information and explanations given to us,
no material fraud by the company or on the Comapany by its officers or employees has been
noticed or reported during the year.
(xi) As per ministry of Corporate Affairs Notification dated 05.06.2015, Section 197 read with
Schedule V to the Companies Act, 2013 is not applicable on Government Company.
(xii) In our opinion and according to the information and explanations given to us, the company is
not a nidhi company. Accordingly, paragraph 3(xii) of the order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, the company
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
250
did not entered into any contracts or arrangements with related parties during the year is
pursuance to section 177 and 188 the Companies Act, 2013.
(xiv) According to the information and explanations given to us and on an overall examination of
the balance sheet, the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of
the records of the Company, the company has not entered into non-cash transactions with
directors or persons connected with him. Accordingly, paragraph 3(xv) of the order is not
applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India
Act, 1934.
For P.C. Modi & Co.
Chartered Accountants
Firm’s Registration No.000239C
Anirudh Singh
(Partner)
M. No.: 418686
Place: Jaipur
Date: 10.07.2019
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
251
ANNEXURE C
ANNEXURE C referred to our report of even date of M/S CHHABRA POWER LIMITED
Report on the Internal Financial Controls 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 CHHABRA POWER
LIMITED (“the company”) as of March 31, 2019 in conjunction with our audit of the standalone
financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s Management is 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 (‘ICAI’). 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 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.
Auditor’s 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 Guidance
Note on Audit of Internal Financial Controls over Financial Reporting (the ‘Guidance Note”) and the
Standards on Auditing as specified under section 143(10) of the Companies Act, 2013 to the extent
applicable to an audit of internal financial controls, and both issued by the Institute of Chartered
Accountants of India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financials 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 adequacy of the internal
financial controls system over financial reporting and their operation effectiveness. Our audit of
internal financial controls over financials reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing 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 auditor’s 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 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 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
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
252
For P.C. Modi & Co.
Chartered Accountants
FRN: 000239C
Anirudh Singh
(Partner)
M. No.: 418686
Place: Jaipur
Date: 10.07.2019
and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions are recorded as necessary to permit preparation of financial
statements in 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 authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized 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 financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due
to errors or frauds may occur and not be detected. Also, projections of any evaluation of the
inetranal financial controls over financials reporting to future periods are subject to the risk that
the internal financisl 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.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financials reporting were
operating effectively as at March 31, 2019, 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 Financials Reporting issued by
the Institute of Chartered Accountants of India.
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
253
The books of accounts are being
maintained in Tally ERP accounting
software. Since the company remained
inoperative during reporting period,
hence there are no transaction which
may in any manner may deteriorate the
integrity of finances of company.
It was informed to us that there is no case
of waiver/write off of debts/loans/
interest etc.
The company has neither received any
a s s e t a s g i f t / g r a n t ( s ) f r o m
Government/other authorities not there
has been any inventories lying with third
parties.
Whether the company has system in
place to process all the accounting
transactions through IT System? If Yes,
the implication of processing of
accounting transactions outside IT
system on the integrity of the accounts
along with the financial implication, if
any, may be stated
Whether there are any cases of
waiver/write off of debts/loans/interest
etc. If yes, the reasons there for and the
amount involved.
whether proper records are maintained
for inventories lying with third parties
and assets received as gift/grant(s) from
Government or other authorities.
ANNEXURE-B
Annexure B referred in our report of even date of CHHABRA POWER LIMITED on the Ind AS
financial statements for the year ended March 31, 2019
S.No. Direction Report
1.
2.
3.
For P.C. Modi & Co.
Chartered Accountants
FRN: 000239C
Anirudh Singh
(Partner)
M. No.: 418686
Place: Jaipur
Date: 10.07.2019
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
254
CIN-U40109RJ2006SGC023353
stBALANCE SHEET AS AT 31 MARCH, 2019
ParticularsS.
No.Notes
As atst31 March, 2019
As atst31 March, 2018
ASSETS
1) Non-current assets
(a) Property, Plant and Equipment - -
(b) Capital work-in-progress - -
(c) Financial Assets
(d) Deferred Tax Assets (Net) - -
(e) Other non current assets - -
2) Current assets
(a) Inventories - -
(b) Financial Assets - -
(i) Cash and cash equivalents 1 703 3,712
(ii) Others 2 1,34,492 1,51,919
(c) Other current assets
Total Assets 1,35,195 1,55,631
EQUITY AND LIABILITIES
1) Equity
(a) Equity Share capital 3 5,00,000 5,00,000
(b) Other Equity 4 (4,09,830) (3,78,094)
LIABILITIES
2) Non-current liabilities
(a) Financial Liabilities - -
(b) Provisions - -
(c) Deferred tax liabilities (Net) - -
(d) Other non-current liabilities - -
3) Current liabilities
(a) Financial Liabilities - -
(i) Other financial liabilities 5 45,025 33,725
(b) Other current liabilities - -
(c) Provisions - -
Total Equity and Liabilities 1,35,195 1,55,631
Significant Accounting Policies and A & BNotes to Financial Statements
(Amount in `)
For and on Behalf of the Board of Directors As per our separate report of even dateFor P C Modi & Co.
Chartered AccountantsFRN 000239C
(ANIRUDH SINGH)Partner
M.No. 418686Place : JaipurDate : 10.07.2019
(P. RAMESH)Chairman
DIN:03551794
(S.S. MEENA)Director
DIN: 03319346
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
255
CIN-U40109RJ2006SGC023353
Statement Of Profit and Loss for the year ended 31 March 201 st9
Particulars NotesFor the Year ended
st on 31 March, 2019
(Amount in `)
For the Year endedst on 31 March,
2018
Revenue From Operations -
Other Income 6 2,473 2,377
Total Income 2,473 2,377
EXPENSES
Finance costs 7 3,009 3,872
Other expenses 8 31,200 27,850
Total expenses 34,209 31,722
Profit/(loss) before tax (31,736) (29,345)
Tax expense :
(1) Current tax - -
(2) Deferred tax - -
Profit (Loss) for the period (31,736) (29,345)
Other Comprehensive Income - -
Total Comprehensive Income for the period (Comprising Profit /(Loss) and Other Comprehensive Income for the period) (31,736) (29,345)
Earnings per equity share :
(1) Basic 9 (0.63) (0.59)
(2) Diluted
For and on Behalf of the Board of Directors As per our separate report of even dateFor P C Modi & Co.
Chartered AccountantsFRN 000239C
(ANIRUDH SINGH)Partner
M.No. 418686Place : JaipurDate : 10.07.2019
(P. RAMESH)Chairman
DIN:03551794
(S.S. MEENA)Director
DIN: 03319346
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
256
CIN-U40109RJ2006SGC023353
STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31 MARCH 201st9
ParticularsAs at
st31 March, 2019
(Amount in `)
As atst31 March, 2018
A. CASH FLOW FROM OPERATING ACTIVITIES
Total Comprehensive Income for the period (31,736) (29,345)
Changes in operating assets and liabilities
Increase/(Decrease) in Other Non current Assets - (59,437)
Increase/(Decrease) in Other Current Financial Assets (17,427) 40,413
Increase/(Decrease) in Other Financial Liabilities 11,300 6,450
Cash Generated from operations (3,009) (3,872)
Taxes Paid - -
Net cash Inflow/(outflow) from operating activities (A) (3,009) (3,872)
B. CASH FLOW FROM INVESTING ACTIVITIES
Share of interest & loss from partnership(net) - -
Net cash Inflow/(outflow) from investing activities (B) - -
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of equity shares - -
Financial Assistance received from Holding Company - -
Net cash Inflow/(outflow) from financing activities (C) - -
Net increase/(decrease) in cash and cash equivalents (A+B+C) (3,009) (3,872)
Cash and Cash equivalents at the beginning of the year 3,712 7,583
Cash and Cash equivalents at the close of the year 703 3,712
For and on Behalf of the Board of Directors As per our separate report of even dateFor P C Modi & Co.
Chartered AccountantsFRN 000239C
(ANIRUDH SINGH)Partner
M.No. 418686Place : JaipurDate : 10.07.2019
(P. RAMESH)Chairman
DIN:03551794
(S.S. MEENA)Director
DIN: 03319346
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
257
(Am
oun
t in
)
`B
. O
ther
Equit
y
CIN
-U40109R
J2006SG
C023353
ST
AT
EM
EN
TS O
F C
HA
NG
ES I
N E
QU
ITY
A. E
qu
ity
Sh
are
Ca
pit
al
(Am
oun
t in
)
`
Bala
nce a
t th
e b
egin
nin
g o
f th
e r
eport
ing
peri
od
Ch
an
ges i
n e
quit
y
sh
are
capit
al duri
ng
the y
ear
Bala
nce a
t th
e e
nd o
f
the r
eport
ing p
eri
od
5,0
0,0
00
-
5
,00,0
00
Cap
ital
R
eser
veSe
curi
ties
P
rem
ium
R
eser
ve
Ret
ain
ed
Ear
nin
gs
Bal
ance
as
at 1
st A
pri
l 20
18
Pro
fit
for
the
per
iod
Oth
er c
omp
reh
ensi
ve in
com
e
(37
8,0
95
)(3
1,7
36
),
- -
- -
-
-- -
--
--
--
--
-
- --
--
--
-
--
--
--
-
--
--
--
-
--
--
--
-
- - - - - - - -
- - - - - - - -
-
(3
78
,09
5)
(31
,73
6)
,
-
-
To
tal c
om
pre
hen
sive
inco
me
(31
,73
6)
-
(31
,73
6)
Ad
just
men
t d
uri
ng
the
year
Issu
e of
sh
are
cap
ital
Tra
nsa
ctio
n c
osts
Cas
h d
ivid
end
s
Bal
ance
as
at 3
1st
Mar
ch 2
01
9
-
-
-
(4
,09
,83
0)
-
-
-
-
(4,0
9,8
30
)
Rev
alu
atio
n
Surp
lus
Oth
er it
ems
of
Oth
er
Co
mp
reh
ensi
veIn
com
e (s
pec
ify
nat
ure
)
To
tal
Pre
fere
nce
sh
are
cap
ital
Fore
ign
cu
rren
cy
tran
slat
ion
re
serv
e
Par
ticu
lars
Res
erve
an
d s
urp
lus
Shar
e ap
pli
ca-
tio
n m
on
ey
pen
din
gal
lotm
ent
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
258
Cap
ital
R
eser
ve
Sec
uri
ties
P
rem
ium
R
eser
ve
Ret
ain
ed
Ear
nin
gs
Bal
ance
as
at 1
st A
pri
l 20
17
-
-
-
-
-
-
-
-
-
-
-
-
(3
,48
,75
0)
-
-
-
-
(3
,48
,75
0)
Pro
fit
for
the
per
iod
(29
,34
5)
(2
9,3
45
)
Oth
er c
omp
reh
ensi
ve in
com
e -
-
To
tal c
om
pre
hen
sive
inco
me
(29
,34
5)
(29
,34
5)
Ad
just
men
t d
uri
ng
the
year
Issu
e of
sh
are
cap
ital
-
-
-
-
----
--
--
-
--
--
-
-
-
-
Tra
nsa
ctio
n c
osts
-
- -
-
-
-
-
-
-
Cas
h d
ivid
end
s -
- -
-
-
-
-
-
-
Bal
ance
as
at 3
1st
Mar
ch 2
01
8-
- -
(3
,78
,09
5)
-
-
-
- (3
,78
,09
5)
Shar
e ap
pli
cati
on
mo
ney
pen
din
g
allo
tmen
t
Pre
fere
nce
sh
are
cap
ital
Fore
ign
cu
rren
cytr
ansl
atio
n
rese
rve
Par
ticu
lars
Res
erve
an
d s
urp
lus
To
tal
Rev
alu
atio
n
Surp
lus
Oth
er it
ems
of
Oth
er
Co
mp
reh
ensi
veIn
com
e (s
pec
ify
nat
ure
)
For
an
d o
n B
eh
alf
of
the B
oard
of
Dir
ecto
rsA
s p
er
our
separa
te r
eport
of
even
date
For
P C
Modi
& C
o.
Ch
art
ere
d A
ccou
nta
nts
FR
N 0
00239C
(AN
IRU
DH
SIN
GH
)Part
ner
M.N
o. 418686
Pla
ce : J
aip
ur
Date
: 1
0.0
7.2
019
(P. R
AM
ESH
)C
hair
man
DIN
:03551794
(S.S
. M
EE
NA
)D
irecto
rD
IN: 03319346
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
259
CHHABRA POWER LIMITED
A:- SIGNIFICANT ACCOUNTING POLICIES
1. Basis of Preparation
1.1 Statement of Compliance:
These financial statements are prepared on accrual basis of accounting and comply in
all material aspects with the Indian Accounting Standards (Ind AS) notified under the
Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendments
thereto, the Companies Act, 2013 (to the extent notified and applicable), applicable
provisions of the Companies Act, 1956, and the provisions of the Electricity Act, 2003
to the extent applicable.
1.2 Basis of Accounting:
The Company generally follows Mercantile System of Accounting and recognizes
significant items of income and expenditure on accrual basis.
1.3 Functional and Presentation Currency:
These financial statements are presented in Indian Rupees (INR), which is the
Company’s functional currency. All financial information presented in INR has been
rounded to the nearest rupees, except as stated otherwise.
2. Current and non-current classification:
The Company presents assets and liabilities in the balance sheet based on current/non-
current classification.
An asset is current when it is:
a. Expected to be realized or intended to sold or consumed in normal operating cycle;
b. Held primarily for the purpose of trading;
c. Expected to be realized within twelve months after the reporting period; or
d. Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
a. It is expected to be settled in normal operating cycle;
b. It is held primarily for the purpose of trading;
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
260
c. It is due to be settled within twelve months after the reporting period; or
d. There is no unconditional right to defer settlement of the liability for at least twelve
months after the reporting period.
All other liabilities are classified as non-current.
3. Earning Per Share:
Basic earnings per equity share are computed by dividing the net profit or loss attributable to
equity shareholders of the Company by the weighted average number of equity shares
outstanding during the financial year.
Diluted earnings per equity share is computed by dividing the net profit or loss attributable to
equity shareholders of the Company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also the weighted average
number of equity shares that could have been issued upon conversion of all dilutive potential
equity shares.
4. Statement of Cash Flow :
Cash flow statement is prepared in accordance with the indirect method prescribed in Ind AS
7 ‘Statement of Cash Flows’.
5. General:
a) Except wherever stated Accounting Policies are consistent with the generally accepted
accounting principles and have been applied.
b) No business was transacted during the year. Only General Administrative expenses
and Incomes have been charged to the Statement of Profit & Loss.
6. Accounting Policies are adopted by company to the extent applicable during the period.
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
261
B.Notes to Financial Statements
NOTE No. 1 :- CASH AND CASH EQUIVALENTS
NOTE No. 2 :- OTHER CURRENT FINANCIAL ASSETS
NOTE No. 3 :- EQUITY SHARE CAPITAL
CURRENT ASSETS
EQUITY
(Amount in `)
(Amount in `)
(Amount in `)
As At31 March, 2019st
As At31 March, 2019st
As At31 March, 2019st
As At31 March, 2018st
As At31 March, 2018st
As At31 March, 2018st
ParticularsS.
No.Account
Code
1 Balance with Bank in Current Account 24.401 703 3,712with SBI, Jaipur
Total 703 3,712
ParticularsS.
No.Account
Code
1 Security Deposit with C.T.O.(NSC) 28.915 33,000 33,000
2 Income Accured but not due (NSC Interest) 28.310 31,287 28,814
3 Amount Receivable from RRVUNL 28.940 70,205 90,105
Total 1,34,492 1,51,919
ParticularsS.
No.Account
Code
1 Authorised
10,00,000 Equity shares of Rs. 10/- each 1,00,00,000 1,00,00,000
2 Issued,Subscribed & Paid Up
50,000 Equity shares of Rs 10/- each fully 54.600 5,00,000 5,00,000paid up (50,000)
Total 5,00,000 5,00,000
*Figures in Bracket are of Previous Year.
The Companyhas only one class of shares referred to as equity shares having a par value of Rs 10. Each holder of equity shares is entitled to one vote per share and dividend as and when declared by the Company.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after the distribution of all preferential amounts.
ParticularsS.
No.
1 Shares outstanding at the beginning of the year 50,000 50,000
2 (+) Shares Issued during the year - -
3 (-) Shares bought back during the year - -
4 Shares outstanding at the end of the year 50,000 50,000
(i) Reconciliation of the number of shares outstanding
As At31 March, 2019st
As At31 March, 2018st
(Nos.)
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
262
(ii) Details of Shares in the company held by each shareholder holding more than 5 percent shares
NOTE No. 4 :- OTHER EQUITY(Amount in `)
No. of Shares held
ParticularsS.
No.
1 Rajasthan Rajya Vidyut Utpadan Nigam Limited & 50,000 50,000its Nominees (Holding Company)
% of Holding 100.00% 100.00%
ParticularsS.
No.
a) Surplus
1 Opening Balance 58.210 (3,78,094) (3,48,750)
2 Add:- Net Profit after tax transferred from (31,736) (29,345)Statement of Profit & Loss
Closing Balance (4,09,830) (3,78,094)
AccountCode
As At31 March, 2019st
As At31 March, 2019st
As At31 March, 2018st
As At31 March, 2018st
ParticularsS.
No.Account
Code
1 Expenses Payable 46.430 45,025 33,725
Total 45,025 33,725
NOTE No. 6:- OTHER INCOME
ParticularsS.
No.Account
Code
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
1 Income on Govt. Securities (NSC Interest) 62.220 2,473 2,377
Total 2,473 2,377
(Amount in `)
NOTE No. 7:- FINANCE COSTS
ParticularsS.
No.Account
Code
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
1 Other Bank Charges 78.883 3,009 3,872
Total 3,009 3,872
(Amount in `)
NOTE No. 5 :- OTHER FINANCIAL LIABILITIES
CURRENT LIABILITIES
(Amount in `)
As At31 March, 2019st
As At31 March, 2018st
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
263
NOTE No. 8 :- ADMINISTRATIVE AND OTHER EXPENSES
ParticularsS.
No.Account
Code
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
1 Legal Expenses 76.121 7,500 4,150
2 Audit Fees 76.122 17,700 17,700
3 Consultancy Expenses 76.123 6,000 6,000
Total 31,200 27,850
(Amount in `)
8.1:- Details of remuneration to Auditors:-
ParticularsS.
No.Account
Code Current year Previous Year
a) For Audit fees to Statutory Auditors 17,700 17,700
(Amount in `)
NOTE No. 9 :-EARNINGS PER EQUITY SHARE (EPS) AND DILUTED EPS
ParticularsS.
No.Unit For the
Year endedst 31 March, 2019
For the Year endedst31 March, 2018
1 Net Profit after tax as per Statement of Profit and Loss attributable to Equity Shareholders (a)
2 Weighted Average numbers of equity shares Nos. 50,000 50,000 used as denominator for calculating EPS (b)
Earning Per Share (EPS) ` (0.63) (0.59)
Face Value per Equity Share ` 10 10
` (31,736) (29,345)
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
264
CHHABRA POWER LIMITED
NOTE No. 10:- OTHER DISCLOSURES AND NOTES ON FINANCIAL STATEMENTS
10.1 The company is a wholly owned subsidiary of M/s Rajasthan Rajya Vidyut Utpadan Nigam
Limited (CIN U40109RJ2006SGC023353), and the same was incorporated on 22.11.2006
under the Companies Act, 1956, pursuant to a decision taken by the Board of Directors of
RVUN, in its 111th meeting held on 7.10.2006, and domiciled in India. Address of the
Company’s registered office is Vidyut Bhawan, Janpath, Jyoti Nagar, Jaipur – 302005, for
taking up the ongoing Greenfield power project being setup by RVUN namely Chhabra Coal
based Thermal Power Project stage-I.
10.2 No business was transacted by the company during the year.
10.3 As no business was transacted during the year, so provision for deferred tax assets /
deferred tax liability pursuant to Ind AS 12 -“Income Taxes” has not been made by the
company.
10.4 The company has no contingent liability as on 31.03.2019.
10.5 There is no estimated liability in respect of capital contract / commitment to be executed.
10.6 No employee of the Company whether employed for whole or part of the year was in receipt
of remuneration amounting to Rs 3,00,000/- or more per annum or Rs 25,000/- per month
or more.
10.7 a) No expenditure in foreign currency was incurred during the year.
b) No earning in foreign exchange was accrued during the year.
10.8 Related Party Disclosure as per Ind AS 24 Related Party Disclosures:-
a) Holding Company: Rajasthan Rajya Vidyut Utpadan Nigam Limited
b) Entities under same government
i. Rajasthan Rajya Vidyut Utpadan Nigam Limited.
c) Outstanding Balances with related parties
ParticularsAs on
31.03.2019As on
31.03.2018
Amount Receivable
-From Holding Company 70,205 90,105
For and on Behalf of the Board of Directors As per our separate report of even dateFor P C Modi & Co.
Chartered AccountantsFRN 000239C
(ANIRUDH SINGH)Partner
M.No. 418686Place : JaipurDate : 10.07.2019
(P. RAMESH)Chairman
DIN:03551794
(S.S. MEENA)Director
DIN: 03319346
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA
UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE
FINANCIAL STATEMENTS OF CHHABRA POWER LIMITED FOR THE YEAR st
ENDED 31 MARCH 2019.
st The preparation of financial statements of Chhabra Power Limited for the year ended 31 March
2019 in accordance with the financial reporting framework prescribed under the Companies Act,
2013 (Act) is the responsibility of the management of the company. The statutory auditors
appointed by the Comptroller and Auditor General of India under Section 139(5) of the Act are
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 section 143(10) of ththe Act. This is stated to have been done by them vide their Audit Report dated 10 July 2019.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary staudit of the financial statements of Chhabra Power Limited for the year ended 31 March 2019
under section 143 (6)(a) of the Act. 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.
On the basis of my supplementary audit nothing significant has come to my knowledge which
would give rise to any comment upon or supplement to statutory auditors' report under section
143 (6)(b) of the Act.
Place : Jaipur
Date : 16.08.2019
For and on the behalf ofthe Comptroller and Auditor General of India
(Anadi Misra)Accountant General
(Economic & Revenue Sector Audit)Rajasthan, Jaipur
ANNUAL REPORT 2018-19 CHHABRA POWER LIMITED
265
th13 ANNUAL REPORT
DHOLPUR GAS POWER LIMITED(A wholly owned subsidiary of Rajasthan Rajya Vidyut Utpadan Nigam Ltd.)
2018-19
Contents
S.No.
Particulars PageNos.
1. Board's Report 269-280
2. Statutory Auditors Report 281-288
3. Financial Statements along 289-299with Significant AccountingPolicies & Notes on Accounts
4. Supplementary Audit Report 300
1. Sh. P. Ramesh(DIN-03551794) - Chairman
2. Sh. Shyam Swaroop Meena(DIN-03319346) - Director
3. Sh. Prahalad Sahai Arya(DIN-07646220) - Director
4. Sh. Rajeev Gupta(DIN-07738499) -Managing Director
BOARD OF DIRECTORS(As on AGM)
AUDITORSM/s S.R. SURANA & CO.Chartered AccountantsC-119, Mangal Marg, Bapu NagarJaipur-302015Phone : (O) 4029477 / 2700879
BANKERSTATE BANK OF INDIA
REGD. OFFICE & HEAD OFFICEVIDYUT BHAWANJANPATH, JYOTI NAGAR, JAIPUR-302005PhoneFaxWebsite
0141-27406920141-2740633energy.rajasthan.gov.in
:::
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
269
BOARDS’ REPORT
To the Members,
thYour Directors are pleased to present the 13 Annual Report on the business and affairs of the stCompany together with the Audited statement of Accounts for the financial year ended 31 March,
2019.
1. Financial Review
No commercial activity has been carried out during the financial year under review, however,
the expenses/income during the year has been charged to the Statement of Profit & Loss. The
Company has incurred loss of Rs. 33,419/- in the financial year 2018-19 against the loss of
Rs. 29,489/- in the previous year 2017-18.
2. Transfer to Reserves
During the period under review, the Company is not proposing to carry any amount to
reserves.
3. Dividend
As no profit was earned during the year, the Board is unable to recommend payment of
dividend for the year.
4. Share Capital
The Authorized Share Capital of the Company remains Rs.1 Crore divided into 10,00,000
Equity Shares of Rs.10/- each. The paid-up Share Capital of the Company is 50,000 fully
paid-up Equity Shares of Rs.10/- each aggregating to Rs.5,00,000/- held by the holding
company, Rajasthan Rajya Vidyut Utpadan Nigam, Ltd. and seven other members as
nominees of the holding company.
5. Change in the nature of business, if any
No commercial activity has been carried out during the financial year under review and no
change has been made in the nature of business of the Company.
6. Material Changes
In terms of Section 134(3)(l) of the Companies Act, 2013, there have been no material changes
and commitments affecting the financial position of the Company between the end of the
financial year and the date of this report.
7. Significant or material orders
No significant or material orders were passed by the Regulators or Courts or Tribunals which
impact the going concern status and Company’s operation in future.
8. Report on Performance of Subsidiaries, Associates and Joint Venture Companies
There are no Subsidiaries, Associate and Joint Venture Companies of the Company.
9. Particulars of Loans, Guarantees, Investments and Securities
There are no loans given, investments made, guarantees given and securities provided during
the year.
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
270
10. Directors and Key Managerial Personnel
As per Articles of Association of the Company, Rajasthan Rajya Vidyut Utpadan Nigam Ltd.,
(RVUN), being the Holding Company is empowered to appoint / replace / remove all Directors
of the Company.
During the period under review, Shri P. Ramesh, IAS (DIN-03551794) has been appointed
and assumed charge as Chairman & Managing Director of RVUN (holding company of DGPL)
w.e.f. 30.11.2018 and accordingly became the Ex-officio Chairman of the Company as per
Articles of Association of Company, in place of Shri N K Kothari (DIN-07649438) who ceased
to be Ex-officio Chairman of the Company.
Further, Shri Gopal Jasoria (DIN-07686384) and Shri M L Gupta (DIN-07580613), ceased to
be the Directors of the Company.
The present constitution of the Board is given below –
1. Shri P. Ramesh, IAS Chairman
2. Shri S S Meena Director
3. Shri P S Arya Director
4. Shri Rajeev Gupta Managing Director
11. Auditors
The Comptroller & Auditor General of India appointed M/s S. R. Surana & Co. (Chartered
Accountants), Jaipur as the Statutory Auditors of the Company, for the financial year 2018-
19. There are no comments/ observations made by the Statutory Auditors on the accounts of
the Company for the financial year ended 31.3.2019. The report/ comments of the
Comptroller & Auditor General of India will be circulated separately.
12. Deposits
The Company has not accepted or renewed any amount falling within the purview of
provisions of Section 73 of the Companies Act 2013 (“the Act”) read with the Companies
(Acceptance of Deposit) Rules, 2014 during the year under review. Hence, the details relating
to deposits as also requirement for furnishing of details of deposits which are not in
compliance with Chapter V of the Act is treated as NIL.
13. Extract of the annual return
The details forming part of the Extract of the Annual Return in Form MGT-9, as required
under Section 92 of the Companies Act, 2013 is included in this Report as Annexure-I and
forms part of this Report.
14. Particulars of Contracts or Arrangement with Related Parties
There are no contracts or arrangements with related parties referred to in sub-section (1) of
section 188.
15. Corporate Social Responsibility
The provisions of Section 135 of Companies Act, 2013 regarding Corporate Social
Responsibility are not applicable on the Company.
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
271
16. Board Meetings
During the financial year 2018-19, following meetings of the Board of Directors of the
Company were held as detailed below:
S. Number and date Board’s Strength Number of
No. of Meeting Directors present
th1. 46 Board Meeting held on 10.04.2018 6 5
th2. 47 Board Meeting held on 30.07.2018 5 5
th3. 48 Board Meeting held on 26.11.2018 5 4
th4. 49 Board Meeting held on 25.03.2019 5 4
17. Directors’ Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013, the Directors to the best of their
knowledge and belief confirm that:
i) in the preparation of the annual accounts, the applicable accounting standards had
been followed along with proper explanation relating to material departures;
ii) such accounting policies have been selected and applied them consistently and such
judgments and estimates have been made that are reasonable and prudent so as to give
a true and fair view of the state of affairs of the Company as at end of financial year and
of the profit of the Company 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 Company and for preventing and detecting fraud and other
irregularities;
iv) the annual accounts have been prepared on a going concern basis; and
v) proper systems have been devised to ensure compliance with the provisions of all
applicable laws and that such systems were adequate and operating effectively.
18. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and
Outgo
Since no commercial activity has been carried out by the Company during the financial year,
there are no particulars in respect of conservation of energy, technology absorption and
foreign exchange earnings & outgo.
19. Employees’ Remuneration
None of the employees of the Company is covered under the provisions of Rule 5(2) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
20. Risk Management
Since no commercial activity has undertaken by the Company, there is no need for
development and implementation of a risk management policy for the Company including
identification therein of elements of risk, which in the opinion of the Board may threaten the
existence of the company.
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
272
21. Acknowledgement
The Directors wish to place on record their appreciation of the support received from the
Government of Rajasthan, especially the Departments of Energy, Finance, etc. apart from the
holding company, Rajasthan Rajya Vidyut Utpadan Nigam Ltd.
On behalf of the Board of Directors
P. Ramesh, IAS
DIN- 03551794
Chairman
Date : 29.08.2019
Place: Jaipur
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
273
Annexure-I
DHOLPUR GAS POWER LIMITED
FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN
stAs on the financial year ended on 31 March 2019
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the
Companies (Management and Administration) Rules, 2014]
1. Registration and Other Details:
1. CIN U40109RJ2006SGC023352
nd2. Registration Date 22 November, 2006
3. Name of the Company Dholpur Gas Power Limited
4. Category/Sub-Category of Category - Company Limited by Sharesthe company Sub-Category- State Government Company
5. Address of the Registered Vidyut Bhawan, Janpath, Jyoti Nagar, office and contact details Jaipur- 302005
6. Whether Listed Company No
7. Name Address and Contact Not Applicable Details of Registrar and Transfer Agent, if any
2. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the company shall be stated:-
S. Name and Description of main NIC Code of % to total turnover
No. products / services the Product/ of the company
service
1. Generation of Electricity 35102 No commercial activityhas been carried outduring the financial year
3. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANY
S. Name and Address of CIN/GLN Holding/ Subsidiary/ % of Applicable
No. the Company Associate shares Section
held
1. Rajasthan Rajya U40102RJ2000SGC016484 Holding Company 100 2 (46)Vidyut Utpadan Nigam LimitedVidyut Bhawan, Janpath, Jyoti Nagar, Jaipur-302005
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
274
4. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i Category-wise Share Holding
CATEGORY OF
SHAREHOLDERS the year Change
during
the year
Demat Physical Total % of Demat Physical Total % of
Total Total
Shares Shares
(A)PROMOTERS
(1) INDIAN
(a)Individual /HUF - - - - - - - - -
(b)Central - - - - - - - - - Government
(c)State - - - - - - - - - Government
(d)Bodies NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL Corporate
(e)Financial - - - - - - - - -Institutions / Banks
(f) Others - - - - - - - - -
Sub-Total A(1) : NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL
(2)FOREIGN
(a)Individuals - - - - - - - - -(NRIs/Foreign Individuals)
(b) Bodies - - - - - - - - -Corporate
(c) Institutions - - - - - - - - -
(d) Qualified - - - - - - - - -Foreign Investor
(e)Others - - - - - - - - -
Sub-Total A(2) : - - - - - - - - -
Total A=A(1)+A(2) NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL
(B)PUBLIC SHAREHOLDING
(1)INSTITUTIONS
(a)Mutual Funds - - - - - - - - -/UTI
(b)Financial - - - - - - - - -Institutions /Banks
(c)Central - - - - - - - - -Government
(d)State - - - - - - - - -Government
(e) Venture - - - - - - - - -Capital Funds
(f) Insurance - - - - - - - - -Companies
(g)Foreign - - - - - - - - -Institutional Investors
(h)Foreign - - - - - - - - -Venture Capital
No. of Shares held at the No. of Shares held at the end %
beginning of of the year
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
275
Investors
(i) Others - - - - - - - - -
Sub-Total B(1) : - - - - - - - - -
(2) NON-INSTITUTIONS
(a) Bodies - - - - - - - - - Corporate
(b)Individuals - - - - - - - - -
(i) Individuals holding nominal - - - - - - - - - share capital upto Rs.1 lakh
(ii) Individuals holding nominal share capital in - - - - - - - - - excess of Rs.1 lakh
(c) Others - - - - - - - -
CLEARING - - - - - - - - -MEMBERS
NON RESIDENT - - - - - - - - -INDIANS
(d) Qualified - - - - - - - - - Foreign Investor
Sub-Total B(2) : - - - - - - - - -
Total Public Shareholding
Total B=B(1)+B(2) - - - - - - - - -
Total (A+B) : NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL
(C) Shares held by custodians, - - - - - - - - - against GDRs ADRs
GRAND TOTAL (A+B+C) : NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
276
Sr. No
Shareholder’s Name
Shareholding at the beginning of the year
Shareholding at the end of the year
No. of shares
% of total Shares of the Company
%of Shares Pledged / encumbered to total shares
No. of shares
% of total Shares of the company
%of Shares Pledged / encumbered to total shares
% change in share holding during
the year
ii. Shareholding of Promoters
11 Rajasthan Rajya
Vidyut Utpadan
Nigam Limited
2 Sh. Nageen Kumar 1 NIL NIL NIL NIL NIL NIL
Kothari
3 Dr. Murari Lal 1 NIL NIL 1 NIL NIL NIL
Gupta
4 Sh. Shyam 1 NIL NIL 1 NIL NIL NIL
Swaroop Meena
5 Sh. P S Arya 1 NIL NIL 1 NIL NIL NIL
6 Sh. A K C 1 NIL NIL NIL NIL NIL NIL
Bhandari
7 Sh. Alok Sharma 1 NIL NIL 1 NIL NIL NIL
8 Sh. Manoj Kumar 1 NIL NIL 1 NIL NIL NIL
Khandelwal
9. Sh. P. Ramesh NIL NIL NIL 1 NIL NIL NIL
10. Sh. Y K Upadhyay NIL NIL NIL 1 NIL NIL NIL
Total 50,000 100 NIL 50,000 100 NIL NIL
Note: 100% Shares held in the company by Rajasthan Rajya Vidyut Utpadan Nigam Limited (holding
company). Shareholders other than Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUN) are
registered shareholders and nominees of RVUN.
49,993 100 NIL 49,993 100 NIL NIL
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
277
iii.Change in Promoters’ Shareholding (please specify, if there is no change): No Change
1.
Government of Rajasthan
Shareholding at the beginning of the year
Cumulative Shareholding during the year
No. of shares % of total shares of the company
No. of shares % of total shares of the company
At the beginning of the year
50,000 100 50,000 100
Date wise Increase /
Decrease in Promoters Share
Holding during the year
specifying the reasons for
increase/Decrease (e.g.
allotment / Transfer /
Bonus/ Sweat equity etc.)
NIL
At the end of the year 50,000 100 50,000 100
iv. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs): NIL
Sl. No.
Shareholding at the of the year
beginning
Cumulative Shareholding during the year
For each of the Top 10
Shareholders
No. of Shares
% of total shares of the
company
No. of Shares
% of total shares of the
company
At the beginning of the year
Date wise Increase / Decrease in
Promoters Share Holding during the
year specifying the reasons for
increase/Decrease (e.g. allotment /
Transfer / Bonus/ Sweat equity etc.)
NIL
At the end of the year (or on the date
of separation, if separated during the
year)
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
278
v. Shareholding of Directors and Key Managerial Personnel: NIL
Sl. No.
Shareholding of each and each Key Managerial
Personnel
director
Shareholding at the beginning of the year
Cumulative Shareholding during the year
No. of Shares
% of total shares of the company
No. of Shares
% of total shares of the company
At the beginning of the year - - - -
Date wise Increase / Decrease
in Promoters Share Holding
during the year specifying the
reasons for increase/Decrease
(e.g. allotment / Transfer /
Bonus/ Sweat equity etc.)
- - - -
At the end of the year - - - -
Secured Loans excluding deposits
Unsecured Loans
Deposits Total Indebtedness
Indebtedness at the beginning of the year
i. Principal Amount
NIL NIL NIL NIL
ii. Interest due but not paid
-- -- -- --
iii. Interest accrued but not paid
-- -- -- --
Total (i+ii+iii) NIL NIL NIL NIL Change in Indebtedness during the financial year
? Addition ? Reduction
-- -- -- --
Net Change -- -- -- --
Indebtedness at the end of the year
i. Principal Amount
NIL NIL NIL NIL
ii. Interest due but not paid
-- -- -- --
iii. Interest accrued but not paid
-- -- -- --
Total (i+ii+iii) NIL NIL NIL NIL
5. INDEBTEDNESSIndebtedness of the Company including interest outstanding/accrued but not due for payment
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
279
6. Remuneration of Directors and Key Managerial Personnel:
(A) Remuneration to Managing Director, Whole-Time Directors and/or Manager: NIL
Sr. No
Particulars of Remuneration Name of MD/WTD/Manager Total Amount
1. Gross Salary -- --
(a) Salary as per provisions contained in section 17(1) of the Income Tax Act, 1961
-- -- -- --
(b) Value of perquisites u/s 17(2) Income Tax Act, 1961
-- -- -- --
(c) Profits in lieu of salary under Section 17(3) IncomeTax Act, 1961
-- -- -- --
2. Stock Option -- -- -- --
3. Sweat Equity -- -- -- --
4. Commission
-As % of profit
-Others, specify
-- -- -- --
5. Others, please specify -- -- -- --
Total (A)
--
--
--
--
Ceiling as per the Act
--
(B) Remuneration to Other Directors: NIL
Sr. No
Particulars of Remuneration Name of Directors Total Amount
1. Independent Directors
(a) Fees for attending board committee meetings
- - - -
(b) Commission - - - -
(c) Other, please specify - - - -
Total (1) - - - -
2. Other Non Executive Directors
(a) Fees for attending board committee meetings
- - - -
(b) Commission - - - -
(c) Other, please specify - - - -
Total (2) - - - -
Total (B) = (1+2) - - - -
Total Managerial Remuneration - - - -
Overall Ceiling as per the Act - - - -
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
280
(C) Remuneration to Key Managerial Personnel Other Than MD/ Manager/ WTD
Sr. No
Particulars of Remuneration Name of Key Managerial Personnel Total Amount
1. Gross Salary NIL NIL
(a) Salary as per provisions contained in section 17(1) of the Income Tax Act, 1961
NIL NIL
(b) Value of perquisites u/s 17(2) Income Tax Act, 1961
NIL NIL
(c) Profits in lieu of salary under Section 17(3) Income Tax Act, 1961
NIL NIL
2. Stock Option NIL NIL
3. Sweat Equity NIL
4. Commission - As % of profit - Others (Variable Pay)
NIL NIL
5. Others, please specify NIL NIL
Total (A) NIL NIL
7. PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES
Type Section of the Companies
Act, 2013
Brief Description
Details of Penalty /
Punishment/ Compounding fees imposed
Authority [RD / NCLT / COURT]
Appeal made, if any (give
Details) A. COMPANY Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
B. DIRECTORS Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
C. OTHER OFFICERS IN DEFAULT Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
For Dholpur Gas Power Limited
P. Ramesh, Chairman
DIN-03551794
IAS
Place: JAIPURDate : 29.08.2019
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
281
C-119, MANGAL MARG,BAPU NAGAR,
JAIPUR - 302015Ph: (O) 4029477 / 2700879
S.R. Surana & Co.Chartered Accountants
INDEPENDENT AUDITORS’ REPORT
To the Members of DHOLPUR GAS POWER LIMITED
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of DHOLPUR GAS POWER
LIMITED (“the company”), which comprises the Balance Sheet as at 31 March 2019, the
Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and the statement
of changes in equity for the year than ended and a summary of significant accounting policies and
other explanatory information (hereinafter referred to as ‘Ind AS financial Statements’).
Management’s Responsibility for the Ind AS 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 and presentation of these Ind AS
financial statements that give a true and fair view of the financial position, state of affairs (financial
position) and profit or Loss (financial performance including other comprehensive income) and
cash flows and changes in equity of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, and the
Companies (Indian Accounting Standards) Rules, 2015, as amended.
This responsibility also includes the maintenance of adequate accounting records in accordance
with the provision of the Act for safeguarding of the assets of the Company and for preventing and
detecting the 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 control, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the Ind AS 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 Ind AS financial statements based on our
audit. We have taken into account the provisions of the Act, the accounting and auditing 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 of the Ind AS financial Statements in accordance with the Standards on
Auditing, issued by the Institute of Chartered Accountants of India, as 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 Ind AS financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the Ind AS financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the Ind AS financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
282
considers internal financial control relevant to the Company’s preparation of the Ind AS financial
statements that give true and fair view, in order to design audit procedures that are appropriate in
the circumstances. but not for the purpose of expressing an opinion on whether the Company has
in place an adequate internal financial controls system over financial reporting and operating
effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made by Company’s Directors,
as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid Ind AS 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 Ind AS, of the state of affairs (financial position) of the company as at 31st March,
2019, and its Loss (financial performance including other comprehensive income) its cash flows
and the changes in equity for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As the company is governed by Electricity Act 2003, the provisions of the act have
prevailed wherever the provisions of Companies Act 2013 are inconsistent with said
Electricity Act 2003.
2. 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
give in the Annexure –A, a statement on the matters Specified in paragraphs 3 and 4 of
the Order.
3. As required by Companies Act, 2013 under Section 143(5), we give in the ANNEXURE-
B, a statement on the compliance to the Directions issued by the C&AG.
4. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books. c) The
Balance Sheet, the Statement of Profit and Loss, including the statement of other
comprehensive income, and the Cash Flow Statement and the statement of
changes in equity dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid Ind AS financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of
the companies (Accounts) Rules, 2014, Companies Indian Accounting Standards
Rules, 2015 as amended.
e) Whereas pursuant of notification no. F. No. 1/2/2014 CLV dated 05.2015 issued
by Ministry of corporate affairs, Government of India, provision of sub section (2) of
Section 164 of the Companies Act, 2013 regarding disqualifications of directors
are not applicable to the company.
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
283
For S. R. Surana & Co.
Chartered Accoutants
Firm Registration No.000990C
(Anil Agarwal)
Partner
M. No. 073285
Place:Jaipur
Date:10.07.2019
f) with respect to the adequacy of the internal financial controls over financial
reporting of the company and operating effectiveness of such controls, refer to our
separate report in Annexure – C; and
g) In our opinion and to the best of our information and according to the explanations
given to us, we report as under with respect to other matters to be included in the
Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014:
i. The Company does not have any pending litigations which would impact its
financial position.
ii. The Company did not have any long-term contracts including derivatives
contracts for which there were any material foreseeable losses.
iii. There were no amounts which required to be transferred by the Company to
the Investor Education and Protection Fund.
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
284
Annexure A to the Auditors’ Report
[Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ of
our Report of even date to the members of DHOLPUR GAS POWER LIMITED on the Ind AS st
financial statement of the company for the year ended 31 March, 2019]
On the basis of such checks as we considered appropriate and according to the information and
Explanations given to us during the course of our audit, we report that:
(i) The Company does not have any fixed assets hence reporting under clause (i) of the Order is
not applicable.
(ii) The Company does not have made any purchases and have not any Inventory hence reporting
under clause (ii) of the Order is not applicable to the company.
(iii) 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.
(iv) The company have not granted any loans and made investments and providing guarantees
and securities hence reporting under clause (iv) of the Order is not applicable.
(v) According to the information and explanations given to us, the Company has not accepted
any deposit during the year and accordingly the question of complying with Sections 73 and
76 of the Companies Act, 2013 does not arise.
(vi) The company has not started operations hence maintenance of cost records are not
applicable.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has been regular in depositing undisputed statutory dues applicable to it
with the appropriate authorities.
(b) There is no statutory dues which have not been deposited as on 31st March, 2019.
(viii) The Company has not raised any moneys by way of loans or borrowings from financial
institutions, banks and government and have not any dues to debenture holders. hence
reporting under clause (viii) of the Order is not applicable.
(ix) The Company has not raised moneys by way of initial public offer or further public offer
(including debt instruments) or term loans and hence reporting under clause (ix) of the Order
is not applicable.
(x) To the best of our knowledge and according to the information and explanations given to us,
no fraud by the Company and no material fraud on the Company by its officers or employees
has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company
has not paid / provided managerial remuneration hence reporting under clause (xi) of the
Order is not applicable.
C-119, MANGAL MARG,BAPU NAGAR,
JAIPUR - 302015Ph: (O) 4029477 / 2700879
S.R. Surana & Co.Chartered Accountants
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
285
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is
not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is
in compliance with Sections 177 and 188 of the Companies Act, 2013, where applicable, for
all transactions with the related parties and the details of related party transactions have
been disclosed in the financial statements etc. as required by the applicable accounting
standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of
shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the
Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year
the Company has not entered into any non-cash transactions with its directors or directors of
its holding, subsidiary or associate company or person connected with them and hence
provisions of Section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India
Act, 1934.
For S. R. Surana & Co.
Chartered Accoutants
Firm Registration No.000990C
(Anil Agarwal)
Partner
M. No.073285
Place: Jaipur
Date: 10.07.2019
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
286
Annexure –B Referred in our report of even date of DHOLPUR GAS POWER LIMITED on the
financial statements for the year ended March 31, 2019.
Whether the Company has system in
place to process all the accounting
transactions through IT system? Is Yes,
the implications of processing of
accounting transactions outside IT
system on the integrity of the accounts
along with the financial implications, if
any, may be stated.
Whether there is any restructuring of an
existing loan or cases of waiver/ write off
of debts/loans/interest etc. made by a
lender to the Company due to the
Company’s inability to repay the loan? Is
yes, the financial impact may be stated.
Whether funds received/ receivable for
specific schemes from Central/ State
agencies were properly accounted for/
utilized as per its term and conditions?
List the cases of deviation.
The books of accounts are being
maintained in Tally ERP accounting
software. Since the company remained
inoperative during reporting period
hence there are no transaction which
may in any manner may deteriorate the
integrity of finances of company.
There is no restructuring of an existing
loan or cases of waiver/ write off of
debts/loans/interest etc. made by a
lender to the Company due to the
Company’s inability to repay the loan
during the year hence there is no
financial impact .
As no funds received/ receivable for
specific schemes from Central/ State
agencies hence there is no case of
deviation.
S.No. General Direction Impact/Comments
1.
2.
3.
Place:Jaipur
Date: 10.07.2019
C-119, MANGAL MARG,BAPU NAGAR,
JAIPUR - 302015Ph: (O) 4029477 / 2700879
S.R. Surana & Co.Chartered Accountants
For S. R. Surana & Co.
Chartered Accoutants
Firm Registration No.000990C
(Anil Agarwal)
Partner
M. No.073285
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
287
C-119, MANGAL MARG,BAPU NAGAR,
JAIPUR - 302015Ph: (O) 4029477 / 2700879
S.R. Surana & Co.Chartered Accountants
Annexure – C to the Independent Auditor’s Report
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 DHOLPUR GAS POWER
Limited (“the Company”) as of 31st March 2019 in conjunction with our audit of the Ind AS
financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is 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 (‘ICAI’). 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 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.
Auditor’s 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 Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and
the Standards on Auditing issued by the Institute of Chartered Accountants of India and deemed to
be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an
audit of internal financial controls both applicable to an audit of Internal Financial Controls and
both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance
Note require that we comply with 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 included obtaining an understanding of
internal financial controls over financial reporting, assessing 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 auditor’s judgement, including the
assessment of the risks of material misstatement of the Ind AS 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
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
288
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 authorizations
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.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the
Company has, in all material respects, an adequate internal financial controls system over
financial reporting and such internal financial controls over financial reporting were operating
effectively as at 31st March 2019, 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.
For S. R. Surana & Co.
Chartered Accoutants
Firm Registration No.000990C
(Anil Agarwal)
Partner
M. No.073285
Place:Jaipur
Date:10.07.2019
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
263
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
289
CIN-U40109RJ2006SGC023352
BALANCE SHEET AS AT 31 MARCH, 201st 9
Particulars NotesAs at
st31 March, 2018As at
st31 March, 2019
ASSETS
1) Non-current assets
(a) Property, Plant and Equipment - -
(b) Capital work-in-progress - -
(c) Financial Assets - -
(d) Deferred Tax Assets (Net) - -
(e) Other non current assets - -
2) Current assets
(a) Inventories - -
(b) Financial Assets - -
(i) Cash and cash equivalents 1 2,267 5,276
(ii) Others 2 1,23,841 1,42,951
(c) Other current assets -
Total Assets 1,26,108 1,48,227
EQUITY AND LIABILITIES
1) Equity
(a) Equity Share capital 3 5,00,000 5,00,000
(b) Other Equity 4 (4,18,918) (3,85,499)
LIABILITIES
2) Non-current liabilities
(a) Financial Liabilities
(b) Provisions - -
(c) Deferred tax liabilities (Net) - -
(d) Other non-current liabilities - -
3) Current liabilities
(a) Financial Liabilities
(i) Other financial liabilities 5 45,025 33,725
(b) Other current liabilities - -
(c) Provisions - -
Total Equity and Liabilities 1,26,108 1,48,227
Significant Accounting Policies and Notes A & Bto Financial Statements
(Amount in `)
For and Behalf of the Board of Directors As per our separate report of even dateFor S.R. SURANA & Co.Chartered Accountants
FRN 000990C(P. RAMESH)
ChairmanDIN: 03551794
(RAJEEV GUPTA)Managing Director
DIN: 07738499
(ANIL AGARWAL)Partner
M.No. 073285Place : JaipurDate : 10.07.2019
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
290
CIN-U40109RJ2006SGC023352
Statement Of Profit and Loss for the year ended 31 March 201 st9
Particulars NotesFor the Year ended
ston 31 March, 2019
(Amount in `)
For the Year endedston 31 March,
2018
Revenue From Operations - -
Other Income 6 790 2,233
Total Income 790 2,233
EXPENSES
Finance costs 7 3,009 3,872
Other expenses 8 31,200 27,850
Total expenses 34,209 31,722
Profit/(loss) before tax (33,419) (29,489)
Tax expense:
(1) Current tax - - -
(2) Deferred tax - - -
Profit (Loss) for the period (33,419) (29,489)
Other Comprehensive Income - -
Total Comprehensive Income for the period (Comprising Profit /(Loss) and Other Comprehensive Income for the period) (33,419) (29,489)
Earnings per equity share (for continuing operation) :
(1) Basic 9 (0.67) (0.59)
(2) Diluted
For and Behalf of the Board of Directors As per our separate report of even dateFor S.R. SURANA & Co.Chartered Accountants
FRN 000990C(P. RAMESH)
ChairmanDIN: 03551794
(RAJEEV GUPTA)Managing Director
DIN: 07738499
(ANIL AGARWAL)Partner
M.No. 073285Place : JaipurDate : 10.07.2019
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
291
CIN-U40109RJ2006SGC023352
STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31 MARCH 201st9
ParticularsAs at
st31 March, 2019
(Amount in `)
As atst31 March, 2018
A. CASH FLOW FROM OPERATING ACTIVITIES
Total Comprehensive Income for the period (33,419) (29,489)
Changes in operating assets and liabilities
Increase/(Decrease) in Other Non Current Assets - (55,834)
Increase/(Decrease) in Other Financial Assets 19,110 36,667
Increase/(Decrease) in Other Financial Liabilities (11,300) 6,450
Cash Generated from operations (3,009) (3,872)
Taxes Paid - -
Net cash Inflow/(outflow) from operating activities (A) (3,009) (3,872)
B. CASH FLOW FROM INVESTING ACTIVITIES
Share of interest & loss from partnership(net) - -
Net cash Inflow/(outflow) from investing activities (B) - -
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of equity shares - -
Financial Assistance received from Holding Company - -
Net cash Inflow / (outflow) from financing activities (C) - -
Net increase / (decrease) in cash and cash equivalents (A+B+C) (3,009) (3,872)
Cash and Cash equivalents at the beginning of the year 5,276 9,147
Cash and Cash equivalents at the close of the year 2,267 5,276
For and Behalf of the Board of Directors As per our separate report of even dateFor S.R. SURANA & Co.Chartered Accountants
FRN 000990C(P. RAMESH)
ChairmanDIN: 03551794
(RAJEEV GUPTA)Managing Director
DIN: 07738499
(ANIL AGARWAL)Partner
M.No. 073285Place : JaipurDate : 10.07.2019
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
292
DH
OLPU
R G
AS P
OW
ER
LIM
ITE
D
CIN
-U40109R
J2006SG
C023352
Sta
tem
en
ts o
f ch
an
ges i
n e
quit
y
A. E
quit
y S
hare
Capit
al
Bala
nce a
t th
e b
egin
nin
g
of
the r
eport
ing p
eri
od
Ch
an
ges i
n e
quit
y
sh
are
capit
al duri
ng
the y
ear
Bala
nce a
t th
e e
nd o
f
the r
eport
ing p
eri
od
5,0
0,0
00 -
5
,00,0
00
(Am
oun
t in
`)
B. O
ther
Equit
y(A
moun
t in
`)
Ca
pit
al
Res
erve
Secu
riti
es
Pre
miu
m
Res
erve
Ret
ain
ed
Ea
rnin
gs
Ba
lan
ce a
s a
t 1
st A
pri
l
20
18
(3
,85
,49
9)
- - - - -- -
- - - - -- -
- - - - -- -
(3,8
5,4
99
)
Pro
fit
for
the
per
iod
(33
,41
9)
(3
3,4
19
)
Oth
er c
omp
reh
ensi
ve
inco
me
-
-
T
ota
l co
mp
reh
ensi
ve
inco
me
(33
,41
9)
--- - - - -
(33
,41
9)
Ad
just
men
t d
uri
ng
the
yea
r
Issu
e of
sh
are
cap
ital
-
-
Tra
nsa
ctio
n c
osts
-
-
Cas
h d
ivid
end
s -
Ba
lan
ce a
s a
t 3
1st
Ma
rch
20
19
-
-
-
(4,1
8,9
18
)
-
-
-
-
(4
,18
,91
8)
Pa
rtic
ula
rs
Sha
re a
pp
lica
-
tio
n m
on
ey
pen
din
g
all
otm
ent
Res
erve
an
d s
urp
lus
Pre
fere
nce
sh
are
cap
ita
l
Fore
ign
curr
ency
tra
nsl
ati
on
rese
rve
Rev
alu
ati
on
Surp
lus
Oth
er i
tem
s o
f
Oth
er
Co
mp
reh
ensi
ve
Inco
me
(sp
ecif
y
na
ture
)
To
tal
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
293
Sha
re a
pp
lica
tio
n
mo
ney
pen
din
g
all
otm
ent
Ca
pit
al
Res
erve
Sec
uri
ties
P
rem
ium
R
eser
ve
Ret
ain
ed
Ea
rnin
gs
Ba
lan
ce a
s a
t 1
st A
pri
l 20
17
-
-
-
(
3,5
6,0
10
)
-
-
-
-
(3,5
6,0
10
)
Pro
fit
for
the
per
iod
(29
,48
9)
(
29
,48
9)
Oth
er c
omp
reh
ensi
ve in
com
e -
-
To
tal c
om
pre
hen
sive
in
com
e(2
9,4
89
)
(2
9,4
89
)
Ad
just
men
t d
uri
ng
the
yea
r
Issu
e of
sh
are
cap
ital
-
-
-
-
-
-
-
-
-
Tra
nsa
ctio
n c
osts
-
-
-
-
-
-
-
-
-
Cas
h d
ivid
end
s -
-
-
-
-
-
-
-
-
Ba
lan
ce a
s a
t 3
1st
Ma
rch
20
18
-
-
-
(3,8
5,4
99
)
-
-
-
-
(3
,85
,49
9)
Pa
rtic
ula
rs R
eser
ve a
nd
su
rplu
s P
refe
ren
ce
sha
re
cap
ita
l
Fore
ign
cu
rren
cy
tra
nsl
ati
on
re
serv
e
Rev
alu
ati
on
Su
rplu
sO
ther
ite
ms
of
Oth
er
Co
mp
reh
ensi
veIn
com
e (s
pec
ify
na
ture
)
To
tal
For
an
d B
eh
alf
of
the B
oard
of
Dir
ecto
rsA
s p
er
our
separa
te r
eport
of
even
date
For
S.R
. SU
RA
NA
& C
o.
Ch
art
ere
d A
ccou
nta
nts
FR
N 0
00990C
(P. R
AM
ESH
)C
hair
man
DIN
: 03551794
(RA
JE
EV
GU
PT
A)
Man
agin
g D
irecto
rD
IN: 07738499
(AN
IL A
GA
RW
AL)
Part
ner
M.N
o. 073285
Pla
ce : J
aip
ur
Date
: 1
0.0
7.2
019
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
294
DHOLPUR GAS POWER LIMITED
A: - SIGNIFICANT ACCOUNTING POLICIES
1. Basis of Preparation
1.1 Statement of Compliance:
These financial statements are prepared on accrual basis of accounting and comply in
all material aspects with the Indian Accounting Standards (Ind AS) notified under the
Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendments
thereto, the Companies Act, 2013 (to the extent notified and applicable), applicable
provisions of the Companies Act, 1956, and the provisions of the Electricity Act, 2003 to
the extent applicable.
1.2 Basis of Accounting:
The Company generally follows Mercantile System of Accounting and recognizes
significant items of income and expenditure on accrual basis.
1.3 Functional and Presentation Currency:
These financial statements are presented in Indian Rupees (INR), which is the
Company’s functional currency. All financial information presented in INR has been
rounded to the nearest rupees, except as stated otherwise.
2. Current and non-current classification:
The Company presents assets and liabilities in the balance sheet based on current/non-
current classification.
An asset is current when it is:
• Expected to be realized or intended to sold or consumed in normal operating cycle;
• Held primarily for the purpose of trading;
• Expected to be realized within twelve months after the reporting period; or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in normal operating cycle;
• It is held primarily for the purpose of trading;
• It is due to be settled within twelve months after the reporting period; or
• There is no unconditional right to defer settlement of the liability for at least twelve
months after the reporting period. All other liabilities are classified as non-current.
3. Earnings Per Share
Basic earnings per equity share are computed by dividing the net profit or loss attributable to
equity shareholders of the Company by the weighted average number of equity shares
outstanding during the financial year.
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
295
Diluted earnings per equity share is computed by dividing the net profit or loss attributable to
equity shareholders of the Company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also the weighted average number
of equity shares that could have been issued upon conversion of all dilutive potential equity
shares.
4. Statement of Cash Flow :
Cash flow statement is prepared in accordance with the indirect method prescribed in Ind AS
7 ‘Statement of Cash Flows’.
5. General :
a) Except wherever stated Accounting Policies are consistent with the generally accepted
accounting principles and have been applied.
b) No business was transacted during the year. Only General Administrative expenses
and Incomes have been charged to the Statement of Profit & Loss.
6. Accounting Policies are adopted by company to the extent applicable during the period.
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
296
B. Notes to Financial StatementsCIN - U40109RJ2006SGC023352
NOTE No. 1 :- CASH AND CASH EQUIVALENTS
NOTE No. 2 :- OTHER CURRENT FINANCIAL ASSETS
NOTE No. 3 :-EQUITY SHARE CAPITAL
CURRENT ASSETS
EQUITY
(Amount in `)
(Amount in `)
(Amount in `)
1 Balance with Bank in Current Account 24.401 2,267 5,276with SBI, Jaipur
Total 2,267 5,276
ParticularsS.
No.Unit As At
st 31 March, 2019
As Atst 31 March, 2019
As Atst 31 March, 2019
As Atst31 March, 2018
As Atst31 March, 2018
As Atst31 March, 2018
1 Security Deposit with C.T.O.(NSC) 28.915 11,000 31,000
2 Income Accured but not due (NSC Interest) 28.310 9,537 27,067
3 Amount Receivable from RRVUNL 28.940 1,03,304 84,884
Total 1,23,841 1,42,951
ParticularsS.
No.Unit
1 Authorised
10,00,000 Equity shares of Rs. 10/- each 1,00,00,000 1,00,00,000
2 Issued, Subscribed & Paid Up
50,000 Equity shares of Rs. 10/- each fully 54.600 5,00,000 5,00,000paid up (50,000)
Total 5,00,000 5,00,000
ParticularsS.
No.Unit
*Figures in Bracket are of Previous Year.
The Company has only one class of shares referred to as equity shares having a par value of Rs. 10. Each holder of equity shares is entitled to one vote per share and dividend as and when declared by the Company.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after the distribution of all preferential amounts.
1 Shares outstanding at the beginning of the year 50,000 50,000
2 (+) Shares Issued during the year - -
3 (-) Shares bought back during the year - -
4 Shares outstanding at the end of the year 50,000 50,000
ParticularsS.
No.
(i) Reconciliation of the number of shares outstanding
As Atst 31 March, 2019
As Atst31 March, 2018
(Nos.)
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
297
1 Rajasthan Rajya Vidyut Utpadan Nigam Limited & its Nominees (Holding Company) 50,000 50,000
% of Holding 100% 100%
(ii) Details of Shares in the company held by each shareholder holding more than 5 percent shares
Name of ShareholderS.No.
No. of Sharesheld
No. of Sharesheld
NOTE No. 4 :- OTHER EQUITY(Amount in `)
a) Surplus
1 Opening Balance 58.210 (3,85,499) (3,56,010)
2 Add:- Net Profit after tax transferred from Statement of Profit & Loss (33,419) (29,489)
Closing Balance (4,18,918) (3,85,499)
ParticularsS.
No.Account
CodeAs At
st 31 March, 2019
As Atst 31 March, 2019
As Atst31 March, 2018
As Atst31 March, 2018
NOTE No. 6 :- OTHER INCOME
ParticularsS.
No.Account
Code
1 Income on Govt. Securities (NSC Interest) 62.220 790 2,233
Total 790 2,233
(Amount in `)
NOTE No. 7 :- FINANCE COSTS
ParticularsS.
No.Account
Code
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
1 Other Bank Charges 78.883 3,009 3,872
Total 3,009 3,872
(Amount in `)
NOTE No. 5 :- OTHER CURRENT FINANCIAL LIABILITIES
CURRENT LIABILITIES
(Amount in `)
1 Expenses Payable 46.430 45,025 33,725
Total 45,025 33,725
ParticularsS.
No.Account
CodeAs At
st 31 March, 2019As At
st31 March, 2018
As Atst 31 March, 2019
As Atst31 March, 2018
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
298
8.1:- Details of remuneration to Auditors :-
ParticularsS.
No. Current year Previous Year
a) For Audit fees to Statutory Auditors 17,700 17,700
(Amount in `)
NOTE No. 8 :- ADMINISTRATIVE AND OTHER EXPENSES
ParticularsS.
No.Account
Code
For the Year endedst 31 March, 2019
For the Year endedst31 March, 2018
1 Legal Expenses 76.121 7,500 4,150
2 Audit Fees 76.122 17,700 17,700
3 Consultancy Expenses 76.123 6,000 6,000
Total 31,200 27,850
(Amount in `)
NOTE No. 10 :-EARNINGS PER EQUITY SHARE (EPS) AND DILUTED EPS
ParticularsS.
No.Unit For the
Year endedst 31 March, 2019
For the Year endedst31 March, 2018
1 Net Profit after tax as per Statement of Profit and Loss attributable to Equity Shareholders (a) `
2 Weighted Average numbers of equity No. 50,000 50,000 shares used as denominator for calculating EPS (b)
Earning Per Share (EPS) ` (0.67) (0.59)
Face Value per Equity Share ` 10 10
(33,419) (29,489)
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
299
DHOLPUR GAS POWER LIMITED
NOTE No. 10:- OTHER DISCLOSURES & NOTES ON FINANCIAL STATEMENTS
10.1 The company is a wholly owned subsidiary of M/s Rajasthan Rajya Vidyut Utpadan Nigam
Limited (CIN U40109RJ2006SGC023352), and the same was incorporated on 22.11.2006
under the Companies Act, 1956, pursuant to a decision taken by the Board of Directors of
RVUN, in its 111th meeting held on 7.10.2006, and domiciled in India. Address of the
Company’s registered office is Vidyut Bhawan, Janpath, Jyoti Nagar, Jaipur – 302005, for
taking up the ongoing Greenfield power project being setup by RVUN namely Dholpur
(Purani Chawni) Gas based Power Project.
10.2 No business was transacted by the company during the year.
10.3 As no any business was transacted during the year, so provision for deferred tax
assets/deferred tax liability pursuant to Ind AS 12 -“Income Taxes” has not been made by
the company.
10.4 The company has no contingent liability as on 31.03.2019.
10.5 There is no estimated liability in respect of capital contract / commitment to be executed.
10.6 No employee of the Company whether employed for whole or part of the year was in receipt
of remuneration amounting to Rs 3,00,000/- or more per annum or Rs 25,000/- per month
or more.
10.7 a) No expenditure in foreign currency was incurred during the year.
b) No earning in foreign exchange was accrued during the year.
10.8 Related Party Disclosure as per Ind AS 24 Related Party Disclosures
a) Holding Company: Rajasthan Rajya Vidyut Utpadan Nigam Limited(RRVUNL)
b) Entities under same government
a. Rajasthan Rajya Vidyut Utpadan Nigam Limited.
c) Outstanding Balances with related parties
Particulars As on 31.03.2019 As on 31.03.2018
Amount Receivable - -
From Holding Company 1,03,304 84,884
For and Behalf of the Board of Directors As per our separate report of even dateFor S.R. SURANA & Co.Chartered Accountants
FRN 000990C(P. RAMESH)Chairman
DIN: 03551794
(RAJEEV GUPTA)Managing Director
DIN: 07738499
(ANIL AGARWAL)Partner
M.No. 073285Place : JaipurDate : 10.07.2019
ANNUAL REPORT 2018-19 DHOLPUR GAS POWER LIMITED
300
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA
UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE
FINANCIAL STATEMENTS OF DHOLPUR GAS POWER LIMITED FOR THE st
YEAR ENDED 31 MARCH 2019.
st The preparation of financial statements of Dholpur Gas Power Limited for the year ended 31
March 2019 in accordance with the financial reporting framework prescribed under the
Companies Act, 2013 (Act) is the responsibility of the management of the company. The statutory
auditors appointed by the Comptroller and Auditor General of India under Section 139(5) of the Act
are 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 section th143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 10 July
2019.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary staudit of the financial statements of Dholpur Gas Power Limited for the year ended 31 March 2019
under section 143 (6)(a) of the Act. 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.
On the basis of my supplementary audit nothing significant has come to my knowledge which
would give rise to any comment upon or supplement to statutory auditors' report under section
143 (6)(b) of the Act.
Place : Jaipur
Date : 16.08.2019
For and on the behalf ofthe Comptroller and Auditor General of India
(Anadi Misra)Accountant General
(Economic & Revenue Sector Audit)Rajasthan, Jaipur
th13 ANNUAL REPORT
GIRAL LIGNITE POWER LIMITED(A wholly owned subsidiary of Rajasthan Rajya Vidyut Utpadan Nigam Ltd.)
2018-19
Contents
S.No.
Particulars PageNos.
1. Board's Report 303-321
2. Statutory Auditors Report 322-331
3. Financial Statements along 332-367with Significant AccountingPolicies & Notes on Accounts
4. Supplementary Audit Report & 368Management's Response toCAG's Comments
1. Sh. P Ramesh(DIN-03551794) - Chairman
2. Sh. Shyam Swaroop Meena(DIN-03319346) - Director
3. Sh. Prahalad Sahai Arya(DIN-07646220) - Director
4. Sh. H S Charan(DIN-08410368) - Managing Director
5. Smt. Pushpa Upadhyay(DIN-07259148) - Director
BOARD OF DIRECTORS(As on AGM)
STATUTORY AUDITORSM/S GOYAL RAJESH & COMPANYChartered Accountants
H.O.: C/o Vinod Traders, Jhilai Road, Newai, District-Tonk-304021 (Raj.)B.O.: B-8, Marwa House, Opp. Singhdwar, New Colony, Jaipur-302001 (Raj.)
COMPANY SECRETARYSh. Hitesh Sharma(ACS-25147)
BANKERSTATE BANK OF INDIA
REGD. OFFICE & HEAD OFFICEVIDYUT BHAWANJANPATH, JYOTI NAGAR, JAIPUR-302005PhoneFaxWebsite
0141-27406920141-2740633energy.rajasthan.gov.in
:::
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
299
BOARD’S REPORT
To the Members,thYour Directors are pleased to present the 13 Annual Report on the business and affairs of the
stCompany together with the Audited Financial Statements for the financial year ended 31 March,
2019.
1. Financial Results
The summarised financial results of the Company for the year ended 31.3.2019 are given below:
(` in Crores)
Current Year Previous Year
2018-19 2017-18
Revenue from Sale of Power (49.02) --
Revenue Subsidies & Grants and other Income 0.14 2.37
Total Income (48.88) 2.37
Cost of Generation of Power 20.48 0.74
Other Expenditure 11.96 9.40
Profit/(Loss) before depreciation, interest and tax (81.32) (7.77)
Less: i) Depreciation 77.54 77.58
ii) Interest, finance charge and lease rentals 159.82 150.64
Profit/ (Loss) for the period (Profit before tax) (318.68) (235.99)
Less: Provision for Tax (Fringe Benefit Tax) -- --
Profit/ (Loss) after tax (318.68) (235.99)
Add/Less: Prior period credits/ expenses -- --
Profit before extraordinary items and tax (318.68) (235.99)
Add: Rate Regulatory Income (5.45) (5.45)
Transferred to Reserve & Surplus head (324.13) (241.44)
2. Transfer to Reserves & Dividend
No profits being available for appropriation, the Board is unable to recommend payment of dividend for the year nor is proposing to carry any amount to reserves.
3. Status of operations
Unit-1 of GLPL has been under major breakdown since 10.7.2014 due to falling of vortex finder in cyclone. Economizer tubes are badly damaged and Eco bank Coils requires replacement. ESP, Tubular APH tubes, and flue gas duct condition is also quite worse. Unit-2 of GLPL is under forced shut-down since 27.01.2016, due to non-finalization of O&M Contract and incurring continuing losses. Due to shut down of both units, no energy was generated during the period under review.
Considering operational problems and heavy financial losses being incurred by both Units of Giral Lignite Thermal Power Station, the Board of Directors of RVUN (holding company) decided for disinvestment of total assets of both the Units 1 & 2 of Giral LTPS, by way of Strategic Sale of RVUN’s equity shareholding in Giral Lignite Power Limited. The matter was submitted to the State Government for according Cabinet approval and the State Cabinet has accorded its approval for the same on 14.09.2016. Simultaneously, various intermediaries have also been appointed, viz., SBI Capital Markets Ltd. as Transaction Advisor, M/s RBSA
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
303
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
304
Valuation LLP as Asset Valuer and M/s P H Bathiya & Associates, Mumbai, as Legal Advisor.
In the meeting held under chairmanship of Chief Secretary, GoR, it was not considered prudent to incur further capital cost for revival of GLTPS units. Further, it was decided that the ongoing disinvestment process for GLPL may be completed by RVUN by following prescribed procedures, so that the fair market value can be discovered. The transaction is under process.
4. Fuel & Technology
The fuel for the plant is lignite available from the mines adjacent to the plant and limestone requirement of the plant is being met from the mines at nearby Sanu village. The water requirement of the plant area being met from the IGNP by laying 165 Kms of pipe line from Mohangarh. The sulphur content in the lignite is in the range of 6% and the technology used for power generation is CFBC.
5. Share Capital
The Authorized Share Capital of the Company remains Rs.375 Crore divided into 37,50,00,000 Equity Shares of Rs.10/- each. The paid-up Share Capital of the Company is 37,00,50,000 fully paid-up Equity Shares of Rs.10/- each aggregating to Rs. 3,70,05,00,000/- held by the holding company, Rajasthan Rajya Vidyut Utpadan Nigam, Ltd. and seven other members as nominees of the holding company.
6. Directors, Key Managerial Personnel & Committees
As per Articles of Association of the Company, Rajasthan Rajya Vidyut Utpadan Nigam Ltd., (RVUN), being the Holding Company is empowered to appoint / replace / remove all Directors of the Company.
During the period under review, Shri P. Ramesh, IAS (DIN-03551794) has been appointed and assumed charge as Chairman & Managing Director of RVUN (holding company of GLPL) w.e.f. 30.11.2018 and accordingly became the Ex-officio Chairman of the Company as per Articles of Association of Company, in place of Shri N K Kothari (DIN-07649438) who ceased to be Ex-officio Chairman of the Company.
Shri H S Charan (DIN- 08410368), Chief Engineer In-charge, GLTPP has been appointed and assumed charge as Director and also as Managing Director of the Company (GLPL), in place of Shri R P Singh (DIN-08242719). Earlier, Shri Rakesh Verma (DIN-07400105), Dy. Chief Engineer and In-charge of GLTPP ceased to be Director and also as Managing Director of the Company.
Shri Gopal Jasoria (DIN-07686384) and Shri M L Gupta (DIN-07580613), also ceased to be the Directors of the Company. Further, Shri Devkinandan Sharma (DIN-08508867) has been appointed as a Director on the Board of Directors of GLPL w.e.f. 11.07.2019 and thereafter ceased to be a Director w.e.f. 12th September, 2019.
Shri Sitaram Sharma, CAO (W&M), RVUN, has been designated as Chief Financial Officer (CFO) of the Company in place of Shri Rajesh Khandelwal, who was being CAO (W&M), RVUN, earlier designated as CFO of the Company in place of Shri S.K. Sethi.
The present constitution of the Board is given below –
1. Shri P. Ramesh, IAS Chairman
2. Shri S S Meena Director
3. Shri P S Arya Director
4. Shri H S Charan Managing Director
5. Smt. Pushpa Upadhyay Director
The Company has constituted an Audit Committee of the Board of Directors on 31.07.2015. The Audit Committee presently comprises of Chairman and three Directors as its members.
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
305
7. Auditors
7.1 Statutory Auditors
The Comptroller & Auditor General of India (CAG) appointed M/s Goyal Rajesh & Co., Chartered Accountants, Jaipur as the Statutory Auditors of the Company, for the financial year 2018-19.
Statutory Auditors’ Observations
The replies of the Management to the observations of the Statutory Auditors on the Annual Financial Statements for the financial year ended 31.3.2019, are attached hereto as Annexure-I. The report/ nil comments of the Comptroller & Auditor General of India is attached herewith.
7.2 Secretarial Auditor
M/s Kushawah Kundwani & Associates, Company Secretaries, Jaipur, has been appointed as the Secretarial Auditor of the Company for the financial year 2018-19. The Secretarial Audit Report for the financial year ended on 31st March, 2019 forms part of this report and is annexed as Annexure II.
8. Other Disclosures as per Section 134 (3) of Companies Act 2013, etc.
a) Change in the nature of business, if any
No change has been made in the nature of business of the Company.
b) Material changes:
In terms of Section 134(3)(l) of the Companies Act, 2013, there have been no material changes and commitments affecting the financial position of the Company between the end of the financial year and the date of this report.
c) Significant and material orders:
No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company’s operation in future.
d) Report on Subsidiaries, Associates Companies
The Company does not have any Subsidiary, Associate or Joint Venture Company.
e) Particulars of Loans, Guarantees, Investments and Securities
There are no loans given, investments made, guarantees given and securities provided during the year.
f) Deposits
The Company has not accepted or renewed any amount falling within the purview of provisions of Section 73 of the Companies Act 2013 (“the Act”) read with the Companies (Acceptance of Deposit) Rules, 2014 during the year under review. Hence, the details relating to deposits as also requirement for furnishing of details of deposits which are not in compliance with Chapter V of the Act is treated as NIL.
g) Extract of the annual return
The details forming part of the Extract of the Annual Return in Form MGT-9, as required under Section 92 of the Companies Act, 2013 is included in this Report as Annexure-III and forms part of this Report.
h) Particulars of Contracts or Arrangement with Related Parties
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
306
During the period under review, the Company had not entered into any transactions with related parties which could be considered material in terms of Section 188 of the Companies Act, 2013. Accordingly, the disclosure of related party transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC 2 is not applicable.
i) Conservation of Energy, Technology Absorption and Foreign Exchange Earnings
and Outgo
As regards conservation of energy, technology absorption and foreign exchange earnings & outgo, the information required under this Section may be treated as nil.
j) Employees’ Remuneration
None of the employees of the Company is covered under the provisions of Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
k) Risk Management
The Company has an adequate system of risk assessment and management, which is commensurate with the size of the Company.
l) Adequacy of Internal Control Systems
The Company has in place adequate internal control systems commensurate with the nature of the Company’s business and operations.
m) Sexual Harassment of Women at workplace
As per the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 and rules made thereunder, the Company has constituted a Committee which is responsible for redressal of complaints related to sexual harassment. During the year under review, there were no complaints pertaining to sexual harassment.
n) Corporate Social Responsibility
The provisions of Section 135 of Companies Act, 2013 regarding Corporate Social Responsibility are not applicable on the Company.
o) Board & Committee Meetings
The details of the meetings of Board and its Committees held during the year and attendance of Directors thereat is enclosed as Annexure-IV.
9. Directors’ Responsibility Statement
Pursuant to Section 134 (5) of the Companies Act, 2013, the Directors to the best of their knowledge and belief state that:
i) in the preparation of the annual financial statements, the applicable accounting standards had been followed along with proper explanation relating to material departures;
ii) such accounting policies have been selected and applied them consistently and such judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at end of financial year and of the profit of the Company 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 and for preventing and detecting fraud and other irregularities;
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
307
iv) the annual financial statements have been prepared on a going concern basis; and
v) proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
10. Statistical information on persons belonging to Scheduled Caste/ Scheduled Tribe
categories
All the employees in GLPL are working on deputation from its Holding Company, i.e., Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUN). The information pertaining to persons belonging to Scheduled Caste/ Scheduled Tribe categories is being given in the Annual Report of RVUN.
11. Acknowledgement
The Directors wish to place on record their appreciation of the support received from the Government of Rajasthan, especially the Departments of Energy, Finance, etc. apart from the holding company, Rajasthan Rajya Vidyut Utpadan Nigam Ltd.
On behalf of the Board of Directors
(P. Ramesh)
DIN-03551794
Chairman
Vidyut Bhawan, Janpath, Jyoti Nagar,
Jaipur-302005
Date: 19.11.2019
Place: Jaipur
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
308
Management Response to the Statutory Auditors' report on the Financial
Accounts of GLPL for the Financial Year 2018-19
Basis of Disclaimer of Opinion: The matters pointed out by the auditors are being replied while
giving point wise replies of the Annexure- A & B of the Auditor’s Report.
ANNEXURE-A OF THE AUDITORS' REPORT
I. Maintenance of Proper Records & Documents :
A. Current Assets and Current Liabilities:
1. As reported by Store wing, GLPL, no such obsolete inventory has been identified
during the F.Y. 2018-19, hence no provision for obsolete inventory has been
made in books of accounts. Therefore management is not agreed with this
qualification.
B. Others:
1. Noted for implementation with effect from current F.Y. 2019-20.
2. As pointed out by the Statutory Auditors, an amount Rs. 1,37,27,407/- has
shown under the head 27.209 “Advance to CTO”, Barmer during the year 2006-
2008. Out of which Rs. 1,26,63,691.42/- adjusted during the financial year
2017-18 and Rs. 3,94,733/- received during the financial year 2018-19. Now
remaining amount of Rs. 6,68,982.58/-, is recoverable from suppliers or
required to be charged to capital expenditure. We are making our best efforts to
search the old record and assure to auditors to adjust this remaining amount
shortly.
3. The matter has already been taken up with PFC regarding transfer of loan from
RRVUNL to GLPL. Above matter is under process.
4. It is assured to the auditor that we will make best efforts to carry out the
physical verification of inventory in due course of time, in future. Regarding loss
of inventory of coal and oil will book in F.Y. 2019-20 after instruction from Store
wing of GLPL.
5. Noted for implementation with effect from current F.Y. 2019-20.
6. Noted for implementation with effect from current F.Y. 2019-20.
7. Process of reconciliation of balances under the various heads is taken up and
shall be reconciled shortly.
8. Process of reconciliation of balances under the “Liabilities for supply of
material” of IISCO & STPS is taken up and shall be reconciled shortly.
9. As per IND AS, it is not required to mention the amount which shall be treated
as material. Therefore management is not agreed with this qualification.
10. Noted for implementation with effect from current F.Y. 2019-20.
11. RVUN being Holding company of GLPL has already disclosed the facts in its
Directors Report for the year 2017-18.
12. Reconciliation of balances under the head 25.200 BHEL against Unit-I & Unit-II
is under process and shall be reconciled shortly.
13. Rs. 19,92,58,178/- under the head 71.8 “Other Operating Exp.” payable to
JdVVNL against Energy bills of water supply from Mohangarh to GLPL plant
site pertaining to financial year 2007-08 to 2016-17 of GLPL. As decided by the
Annexure-I
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
309
Principal Secretary, Energy (GOR) and approved by the WTD, GLPL (RVUNL) in
the meeting held on 02.04.2019 and a revised budget for said amount was
considered by the BOD for the year 2018-19. Therefore it is no prior period
expenditure and management is not agreed with this qualification.
Annexure – “B” To The Auditors' Reports:
(a) Giral Lignite Power Limited is a wholly owned subsidiary company of Rajasthan Rajya
Vidhyut Utpadan Nigam Limited; which is an undertaking of Government of Rajasthan. All
rules and regulations either framed by RVUNL or regulated by Government are applicable on
GLPL.
(b) The Internal Audit for the F.Y. 2018-19 have been completed now. Some observations were
raised by the I.A. Wing which has been replied by the management.
(c) These balances are being tried with our best efforts to reconcile.
(d) Physical verification of fixed assets has been carried by GLPL for the year 2018-19. However
it is assured to the auditor that we will make best efforts to carry out the physical verification
in due course of time, in future.
(e) All the provisions have been carefully made where expenses relates to previous year and
booked in current year except those liabilities which were uncertain. However suggestion of
auditors has been noted for improvement in future.
Annexure-D of The Auditors’ Report:
(i) (a) Detailed Fixed Asset Registers of GLPL for period up to 31.03.2019 is prepared/updated
and available with company. This is in accordance with the format prescribed for
preparation of Fixed Assets register as per Company act. As regards showing the full
particulars including quantitative details and situation of fixed assets, most of the assets
appearing in the register contain the required information.
(b) Fixed assets register has been prepared by the GLPL conducting physical verification of
all fixed assets. The details of their location and existence have also been incorporated in
FAR.
(c) All available land titles, deeds were provided to the Statutory Auditors. Therefore
management disagrees with the observation raised by statutory auditors. Whereas the
question of construction of buildings on discom’s/RRVPNL land, it was clarified by the
management to the statutory auditors that while unbundling of erstwhile RSEB into five
companies w.e.f. 19.07.2000, the Energy department, Government of Rajasthan has
permitted to RVUNL to construct the office building, residential colony and rest house at
the land of Jdvvnl and RRVPNL. This decision was based on mutual understanding of
concerned companies. However, management will make efforts to get the transfer of land
titles of these lands into the name of GLPL.
(ii) It is assured to the auditor that we will make best efforts to carry out the physical
verification of inventory in due course of time, in future.
(iii) to (vi). Factual, No Comments.
(vii)(a) Factual, No comments.
Regarding old un-reconciled balances of statutory liabilities, it is intimated that due to
non-availability of old record above reconciliation process has been delayed. However
management assures to auditors that above reconciliation will be done shortly.
(b) Factual, no comments.
(viii) to (xvi). Informative in nature, hence no comments.
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
310
E-295-296, Speakwel House, 2nd Floor
LalKothi Scheme, Behind New VidhanSabha, Jaipur-15
Tel: +91- 0141-4030077
Kushawah Kundwani & Associates
Company Secretaries
Form: MR-3
SECRETARIAL AUDIT REPORTstFor the Financial Year ended on 31 March, 2019
{Pursuant to Section 204 (1) of the Companies Act, 2013 and Rule No. 9 of the Companies(Appointment and Remuneration of Managerial Personnel) Rules, 2014}
UDIN : F010346A000161739
To
The Members,
Giral Lignite Power Limited
CIN:U40109RJ2006SGC023356VidyutBhawan, Jyoti NagarJaipur-302005
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and
the adherence to good corporate practices by Giral Lignite Power Limited (hereinafter called “GLPL”/ “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 GLPL'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, 2019 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 the Company for the financial year ended on 31st March, 2019 according to the provisions of:
1. The Companies Act, 2013 (the Act) and the rules made thereunder;
2. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
(Not applicable to the Company during the Audit Period)
3. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder; (Not
applicable to the Company during the Audit Period)
4. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External
Commercial Borrowings; (Not applicable to the Company during the Audit Period)
5. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’)(Not applicable to the Company during the Audit Period):-
(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/The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure
Annexure-II
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
311
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; &
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998;
Compliances/processes/systems under other Laws applicable to the Company have been got verified on the basis of random sampling.
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India.
(ii) The Listing Agreement (Not applicable to the Company during the Audit Period)
During the period under review the Company has complied with the provisions of the Act, Rules and Standardsas mentioned above, however as informed by the company the minimum number of board meetings in terms of sub section (1) of section 173 of the Act could not be held due to imposition of model code of conduct for holding General Assembly Elections to the State Legislative Assembly.
We further report that, during the year under review:
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors and Non-Executive 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 are sent as per provisions of the Act, 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.
Majority decision is carried through while dissenting members’ views are captured and recorded as the part of the minutes.
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 guidelinesand the Company is advised to further strengthening the
Date: 24.10.2019Place: Jaipur
For Kushawah Kundwani & AssociatesCompany Secretaries
ICSI-Code-P2015RJ038500FRN-13/287/2015
Ankit Singh Kushawah Partner
M. No.: FCS 10346C. P. No.:11834
(This report is to be read with our letter of even date which is annexed as Annexure-A which forms an integral part of this report.)
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
312
E-295-296, Speakwel House, 2nd Floor
LalKothi Scheme, Behind New VidhanSabha, Jaipur-15
Tel: +91- 0141-4030077
Kushawah Kundwani & Associates
Company Secretaries
“Annexure-A”
To The Members,
Giral Lignite Power Limited
CIN: U40109RJ2006SGC023356
Vidyut Bhawan, Jyoti Nagar
Jaipur-302005
Our report of even date is to be read along with this letter:
1. The Company is a Government Company as defined under Section 2(45) of the Companies Act, 2013.
2. Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit.
3. 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 that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
4. We have not verified the correctness and appropriateness of financial records and books of accounts of the Company.
5. Where ever required, we have obtained the management representation about the compliance of laws, rules, and regulations and happening of events, etc.
6. The compliance of the provisions of corporate and other applicable laws, rules, regulations, standards is the responsibility of management. Our examination was limited to the verification of procedures on test basis.
7. The Secretarial Audit report is neither an 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.
Date: 24.10.2019Place: Jaipur
For Kushawah Kundwani & AssociatesCompany Secretaries
ICSI-Code-P2015RJ038500FRN-13/287/2015
Ankit Singh Kushawah Partner
M. No.: FCS 10346C. P. No.:11834
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
313
Annexure-III
GIRAL LIGNITE POWER LIMITED
FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN
As on the financial year ended on 31 March 2019
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
1. Registration and Other Details:
1. CIN U40109RJ2006SGC023356
2. Registration Date 23/11/2006
3. Name of the Company Giral Lignite Power Limited
4. Category/Sub-Category Category - Company Limited by Shares of the company Sub-Category- State Government Company
5. Address of the Registered Vidyut Bhawan, Janpath, Jyoti Nagar,office and contact details Jaipur- 302005
6. Whether Listed Company No
7. Name Address and Contact Not Applicable Details of Registrar and Transfer Agent, if any
2. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-
S. Name and Description of main NIC Code of % to total turnover
No. products / services the Product/ of the company
service
1. Generation of Power 35102 100%
3. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANY
S. Name and Address of CIN/GLN Holding/ Subsidiary/ % of Applicable
No. the Company Associate shares Section
held
1. Rajasthan Rajya U40102RJ2000SGC016484 Holding Company 100 2 (46)Vidyut Utpadan Nigam LimitedVidyut Bhawan, Janpath, Jyoti Nagar, Jaipur-302005
st
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
314
4. SHARE HOLDING PATTERN (Equity Share Capital Break up as percentage of Total Equity)
i Category-wise Share Holding
CATEGORY OF
SHAREHOLDERS the year Change
during
the year
Demat Physical Total % of Demat Physical Total % of
Total Total
Shares Shares
(A)PROMOTERS
(1) INDIAN
(a)Individual /HUF - - - - - - - --
(b)Central - - - - - - - -- Government
(c)State - - - - - - - - - Government
(d)Bodies NIL 37,00,50,000 37,00,50,000 100 NIL 37,00,50,000 37,00,50,000 100 NIL
Corporate
(e)Financial - - - - - - - - -Institutions / Banks
(f) Others - - - - - - - - -
Sub-Total A(1) : NIL 37,00,50,000 37,00,50,000 100 NIL 37,00,50,000 37,00,50,000 100 NIL
(2)FOREIGN
(a)Individuals - - - - - - - - -(NRIs/Foreign Individuals)
(b) Bodies - - - - - - - - -Corporate
(c) Institutions - - - - - - - - -
(d) Qualified - - - - - - - - -Foreign Investor
(e)Others - - - - - - - - -
Sub-Total A(2) : - - - - - - - - -
Total A=A(1)+A(2) NIL 37,00,50,000 37,00,50,000 100 NIL 37,00,50,000 37,00,50,000 100 NIL
(B)PUBLIC SHAREHOLDING
(1)INSTITUTIONS
(a)Mutual Funds - - - - - - - - -/UTI
(b)Financial - - - - - - - - -Institutions /Banks
(c)Central - - - - - - - - -Government
(d)State - - - - - - - - -Government
(e) Venture - - - - - - - - -Capital Funds
(f) Insurance - - - - - - - - -Companies
(g)Foreign - - - - - - - - -Institutional Investors
(h)Foreign - - - - - - - - -Venture Capital
No. of Shares held at the No. of Shares held at the end %
beginning of of the year
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
315
Investors
(i) Others - - - - - - - - -
Sub-Total B(1) : - - - - - - - - -
(2) NON-INSTITUTIONS
(a) Bodies - - - - - - - - - Corporate
(b)Individuals - - - - - - - - -
(i) Individuals holding nominal - - - - - - - - - share capital upto Rs.1 lakh
(ii) Individuals holding nominal share capital in - - - - - - - - - excess of Rs.1 lakh
(c) Others - - - - - - - -
CLEARING - - - - - - - - -MEMBERS
NON RESIDENT - - - - - - - - -INDIANS
(d) Qualified - - - - - - - - - Foreign Investor
Sub-Total B(2) : - - - - - - - - -
Total Public Shareholding
Total B=B(1)+B(2) - - - - - - - - -
Total (A+B) : NIL 37,00,50,000 37,00,50,000 100 NIL 37,00,50,000 37,00,50,000 100 NIL
(C) Shares held by custodians, - - - - - - - - - against GDRs ADRs
GRAND TOTAL (A+B+C) : NIL 37,00,50,000 37,00,50,000 100 NIL 37,00,50,000 37,00,50,000 100 NIL
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
316
ii. Shareholding of Promoters
Note: 100% Shares held in the company by Rajasthan Rajya Vidyut Utpadan Nigam Limited (holding company). Shareholders other than Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUN) are registered shareholders and nominees of RVUN.
iii.Change in Promoters’ Shareholding (please specify, if there is no change): No Change
1.
Rajasthan Rajya VidyutUtpadan Nigam Limited
Shareholding at the beginning of the year
Cumulative Shareholding during the year
No. of shares % of total shares of the company
No. of shares % of total shares of the company
At the beginning of the year
37,00,50,000 100 100
Date wise Increase /
Decrease in Promoters Share
Holding during the year
specifying the reasons for
increase/Decrease (e.g.
allotment / Transfer /
Bonus/ Sweat equity etc.)
NIL
At the end of the year 37,00,50,000 100 100
Sr. No.
Shareholder’s Name Shareholding at the beginning of the year
Shareholding at the end of the year
No. of Shares
%of total Sharesof the
company
%of Shares Pledged/ encumbered to total shares
No. of Shares
%of total Shares of the company
%of Shares Pledged/ encumberedtototal shares
% change in shareholding during the year
1. Rajasthan Rajya Vidyut Utpadan Nigam Limited
370049993
100 NIL 370049993 100 NIL NIL
2. Shri N K Kothari 1 NIL NIL 0 NIL NIL NIL
3. Shri A.K.C. Bhandari 1 NIL NIL 0 NIL NIL NIL
4. Shri P.S. Arya 1 NIL NIL 1 NIL NIL NIL
5. Shri S.S. Meena 1 NIL NIL 1 NIL NIL NIL
6. Shri M.K. Khandelwal 1 NIL NIL 1 NIL NIL NIL
7. Shri P. Ramesh 0 NIL NIL 1 NIL NIL NIL
8. Dr. M L Gupta 1 NIL NIL 1 NIL NIL NIL
9. Shri Alok Sharma 1 NIL NIL 1 NIL NIL NIL
10. Shri Y.K. Upadhyay 0 NIL NIL 1 NIL NIL NIL
Total 370050 000
100 NIL 370050000 100 NIL NIL
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
317
iv. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs): NIL
Sl. No.
Shareholding at the of the year
beginning Cumulative Shareholding during the year
For each of the Top 10
Shareholders
No. of Shares
% of total shares of the
company
No. of Shares
% of total shares of the
company
At the beginning of the year
Date wise Increase / Decrease in
Promoters Share Holding during the
year specifying the reasons for
increase/Decrease (e.g. allotment /
Transfer / Bonus/ Sweat equity etc.)
NIL
At the end of the year (or on the date
of separation, if separated during the
year)
v. Shareholding of Directors and Key Managerial Personnel: NIL
Sl. No.
Shareholding of each and each Key Managerial
Personnel
director
Shareholding at the beginning of the year
Cumulative Shareholding during the year
No. of Shares
% of total shares of the company
No. of Shares
% of total shares of the company
At the beginning of the year - - - -
Date wise Increase / Decrease
in Promoters Share Holding
during the year specifying the
reasons for increase/Decrease
(e.g. allotment / Transfer /
Bonus/ Sweat equity etc.)
- - - -
At the end of the year - - - -
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
318
5.INDEBTEDNESSIndebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans excluding deposits
Unsecured Loans
Deposits Total Indebtedness
Indebtedness at the beginning of the year
i. Principal Amount 3,02,59,42,376 - - 3,02,59,42,376
ii. Interest due but not paid
- - - -
iii.
Interest accrued but not paid
-
-
-
-
Total (i+ii+iii)
3,02,59,42,376
-
-
3,02,59,42,376
Change in Indebtedness during the financial year
?
Addition
-
-
-
-
?
Reduction
67,49,43,988
67,49,43,988
Net Change
67,49,43,988
67,49,43,988
Indebtedness at the end of the year
i.
Principal Amount
2,35,09,98,388
-
-
2,35,09,98,388
ii.
Interest due but not paid
-
-
-
-
iii.
Interest accrued but not paid
-
-
-
-
Total (i+ii+iii)
2,35,09,98,388
-
-
2,35,09,98,388
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
319
6. Remuneration of Directors and Key Managerial Personnel:
(A) Remuneration to Managing Director, Whole-Time Directors and/or Manager:
(B) Remuneration to Other Directors:
Sr. No
Particulars of Remuneration Name of Directors Total Amount
1. Independent Directors
(a) Fees for attending board committee meetings
- - - -
(b) Commission - - - -
(c) Other, please specify - - - -
Total (1) - - - -
2. Other Non Executive Directors
(a) Fees for attending board committee meetings
- - - -
(b) Commission - - - -
(c) Other, please specify - - - -
Total (2) - - - -
Total (B) = (1+2) - - - -
Total Managerial Remuneration - - - -
Overall Ceiling as per the Act - - - -
In Lacs`
Sr. No
Particulars of Remuneration Name of MD/WTD/Manager
Sh. Rakesh Verma
R. P. Singh
1.
Gross Salary
9.42
10.25
--
--
(a)
Salary as per provisions contained in section 17(1)of the Income Tax Act
-
-
-
-
(b)
Value of perquisites u/s 17(2) Income Tax Act, 1961
-
-
-
-
(c)
Profits in lieu of salary under Section 17(3) IncomeTax Act, 1961
-
-
-
-
2.
Stock Option
-
-
-
-
3.
Sweat Equity
-
-
-
-
4.
Commission
-As % of profit
-Others, specify
-
-
-
-
5.
Others, please specify
Gratuity Trust&Superannuation Trust
Leave Encashment
1.47
0.64
1.64
0.85
-
-
Total (A)
11.53
12.74
-
-
Ceiling as per the Act
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
320
(C) Remuneration to Key Managerial Personnel Other Than MD/ Manager/ WTD
7. PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES
Type Section of the Companies
Act
Brief Description
Details of Penalty /
Punishment/ Compounding fees imposed
Authority [RD / NCLT / COURT]
Appeal made, if any (give
Details) A. COMPANY Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
B. DIRECTORS Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
C. OTHER OFFICERS IN DEFAULT Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
For Giral Lignite Power Limited
(P. Ramesh)DIN-03551794
Chairman Vidyut Bhawan, Janpath, Jyoti Nagar,
Jaipur-302005
Place : JAIPURDate : 19.11.2019
Sr. No
Particulars of Remuneration
Name of Key Managerial Personnel
1. Gross Salary -
(a)
Salary as per provisions contained in section 17(1) of the Income Tax Act
-
(b)
Value of perquisites u/s 17(2) Income Tax Act, 1961
-
(c)
Profits in lieu of salary under Section 17(3) Income Tax Act, 1961
-
2.
Stock Option
-
3.
Sweat Equity
-
4.
Commission
-
As % of profit
-
Others (Variable Pay)
-
-
5.
Others, please specify
-
Total (A)
-
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
321
Details of Board Meetings held during the year 2018-19:
Attendance of Directors in Board Meetings:
Note:-The maximum time gap between any two meetings was not more than 120 days.
Annexure-IV
Details of Meetings of Audit Committee held during the year 2018 -19:
Attendance of Members:
S. No. Number and date of Meeting Board’s Strength
Number of Directors present
1. 55th Board Meeting held on 10.04.2018 7 6 2. 56th Board Meeting held on 07.08.2018 6 5 3. 57th Board Meeting held on 05.12.2018
and continued on 26.12.2018 6 5
Name of Director Meetings entitled to attend
Meetings attended
Shri N K Kothari 2 2 Shri P. Ramesh 1 1 Shri Gopal Jasoria 1 1 Shri M L Gupta 3 2 Shri S S Meena 3 3 Shri P S Arya 3 3 Shri Rakesh Verma 2 2 Shri R P Singh 1 1 Smt. Pushpa Upadhyay 3 1
S. No.
Number and date of Meeting Audit Committee’s Strength
Number of Members present
1. 11th Audit Committee Meeting held on 10.04.2018
4 4
2. 12th Audit Committee Meeting held on 07.08.2018
4 4
3. 13th Audit Committee Meeting held on 05.12.2018 and continued on 26.12.2018
4 3
Name of Director Meetings entitled to attend
Meetings attended
Shri N K Kothari 2 2 Shri P Ramesh 1 1 Shri M L Gupta 3 2 Shri S S Meena 3 3 Shri P S Arya 3 3
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
322
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF GIRAL LIGNITE POWER LIMITED
Report on the audit of Standalone Financial Statements
Qualified Opinion
We have audited the accompanying standalone financial statements of GIRAL LIGNITE POWER
LIMITED (“the Company”), which comprise the Balance Sheet as at 31st March 2019, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid standalone financial statements give the information required by Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2019, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Basis for Qualified Opinion
While auditing books of accounts, various points were observed & evaluated and on the basis of
which a qualified opinion is formed. These points are mentioned in ‘Annexure A’ enclosed with this report and also forming part of this report.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor’s Responsibility for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our qualified opinion on the standalone financial statements.
Emphasis of Matter
We draw attention to the fact that there are Inter Company Transfers amounting to Rs. 1,21,87,74,784.00 which relates to allocation of Interest and commission charges to the Unit for the F.Y. 2018-19.
There are prior period incomes as well as expenditure of Rs. 63,77,888.00 and Rs. 2,70,82,952.90 respectively. As per accounting policy of the company, the same is not material and thus not treated as per “Ind AS 8, Accounting Policies, Change in Accounting Estimates and Errors”, which requires an entity to correct material prior period errors by way of reinstatement of Financial statements and “Ind AS 1, Presentation of Financial Statements” which inter alia requires an entity to present a third balance sheet as at the beginning of the preceding period in addition to the minimum financial statements. The company has not treated the above amounts as material by setting out various parameters. Therefore, attention of the users is drawn to this fact.
Information Other than the Financial Statements and Auditor’s Report Thereon
?The Company’s Board of Directors is responsible for the other information. The other
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
323
information comprises the information included in the Report on Shareholder information, but does not include the standalone financial statements and our auditor’s report thereon.
?Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
?In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
?We have nothing to report in this regard.
Management’s Responsibility for the Ind AS 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 standalone financial statements that give a true and fair view of the financial position including other comprehensive income, financial performance, cash flows and statement of changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with relevant rules. 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibility for the Audit of the Standalone Financial Statements.
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
?Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
324
?audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity`s internal control.
?Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
?Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
?Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
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 Companies Act, 2013, we give in the Annexure D, a statement on the matters specified in paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.
b. Except for the 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 so far as it appears from our examination of those books.
Obtain an understanding of internal financial control relevant to the audit in order to design
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
325
c. The company does not have any branch offices as informed to us.
d. In our opinion the aforesaid financial statements comply with the Ind AS specified under section 133 of the Act.
e. The Balance Sheet as at 31st March 2019, and the Statement of Profit and Loss (including Other Comprehensive Income),the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information dealt with by this report are in agreement with books of account.
f. The matters described in the Basis for Qualified Opinion paragraph above, in our opinion, may have an adverse effect on the functioning of the Company.
g. The provisions of Section 164(2) of the Companies Act, 2013 are not applicable on the company wide notification G.S.R. 463(E) dated 5th June, 2015.
h. The qualification relating to maintenance of accounts and others matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.
i. With respect to the adequacy of Internal Financial Control over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in “Annexure B”.
j. In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
k. 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, as amended, in our opinion and to the best of our information and according to the explanations given to us:
a. Except for the possible effect of the matter described in Basis of Qualified Opinion paragraph (Annexure A), the standalone financial statements disclosed the impact of pending litigations on the financial position of the entity.
b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
for GOYAL RAJESH AND COMPANY
Chartered Accountants
FRN: 003337C
UDIN : 19403982AAAAAY6488
(CA VISHAL GUPTA)
Partner
M.No.: 403982
B-8, MARWA HOUSE, OPP. SINGH DWAR,
NEW COLONY, JAIPUR-302001 RAJASTHAN
Place : Jaipur
Date : 07.08.2019
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
326
“ANNEXURE A”(BASIS OF QUALIFIED OPINION)
I. Maintenance of proper Records & Documents:
A. Current Assets and Current Liabilities:
1. Obsolete inventory has not been identified and no provision for obsolete inventory has been made.
B. Others:
1. All the vehicles as appearing in the books of accounts are insured for third party liability only. The other Fixed Assets including Office Building and structures at Barmer, office equipments and cash at Barmer were not insured at all.
2. Under the head 27.209 Advance to CTO Barmer there is an outstanding balance of Rs. 6,68,982.58 which in unadjusted and un reconciled. The same relates to the period February 2006 to October 2008.
3. The Unit II has been transferred to GLPL and loan from PFC has also been transferred but the consent has not been received. As per the information given to us, the company has not yet entered/ arranged the Tri-Party agreement with PFC in respect of its loan transferred for Unit I and Unit II. However, they have agreed in principle over the same which was a pre condition for transfer of such loan.
4. The Physical verification of inventory has not been done till the end of the period under audit. Also, inventory of coal, oil etc is lying since long time but no loss has been booked on account of diminution in the value.
5. The income from erector hostel is accounted for on cash basis instead of accrual basis.
6. The practice of accounting for Demand Drafts received is such that the cash is debited as soon as these are received and cash is credited when the Demand Drafts are realized which should not be the case.
7. There are various un reconciled/ unconfirmed balances under various heads since a long period of time. The management has not taken proper action for the same. This may result in losses to the company on account of actual recoverable amounts for which no demand have been made since long. Similarly, the unit has also not prepared age wise analysis of these old un reconciled balances.
8. On review of test check of list of ‘Liability for supply of material’, it is observed that in the following cases ‘Debit’ balances against the supplier are included in the list of liabilities for supply of material since long period:
Name of supplier /
ContractorAmount (Rs. In Lakh)
Date / period from
which outstanding
IISCO 17.22 31.03.2006
STPS 28.16 31.01.2008
Total 45.38
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
327
for GOYAL RAJESH AND COMPANY
Chartered Accountants
FRN: 003337C
UDIN : 19403982AAAAAY6488
(CA VISHAL GUPTA)
Partner
M.No.: 403982
B-8, MARWA HOUSE, OPP. SINGH DWAR,
NEW COLONY, JAIPUR-302001 RAJASTHAN
Place : Jaipur
Date : 07.08.2019
However, no detail / correspondence of these is found in the records. Since, no correspondence has been made for recovery of these debit balances from the supplier of materials, hence it was to be provided for doubtful debts in the accounts. However, no provision in this respect is made in the accounts.
9. Point 18 of the ‘Significant accounting policies’ do not mention the amount which shall be treated by the auditee as material. Hence, the policy is incomplete to that extent.
10. The loss of Rs. 23.80 lakh has been incurred on account of improper and non-comprehensive insurance policy in terms of amount and coverage. The unit has not taken appropriate steps to ensure necessary changes in insurance policy taken by it so that such losses may be avoided in future.
11. The organization has failed to disclose the fact that both the units are inoperative since January 2016 (one from July 14 & other from Jan 16) and it has been already decided to disinvestment of 100% equity shareholding of RVUNL.
12. The unit failed to explain the nature of balances lying under 25.200 Bhel Unit I of Rs 5,68,81,033.47 Dr & under 25.200 Bhel Unit – II of Rs 7,52,71,194.70. Provision should be made if these amounts are not recoverable any more.
13. The unit has debited Rs 19,92,58,178.00 under the head 71.8 ‘Other Operating Exp.’. Same was on account of electricity bills of 4 pumping stations of GLPL from June 07 to Mar 17. We opined that same is prior period expenditure as per order of Principle Secretary, Energy, Govt. of Rajasthan. The unit however did not considered this same as prior period expenditure. The explanation behind same is that the quantification and final decision according to the unit has occurred in the period under consideration only.
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
299
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
328
ANNEXURE - B TO THE AUDITORS' REPORT
ANNEXURE - B TO THE AUDITORS’ REPORT
Report on the Internal Financial Controls 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 Giral Lignite Power
Limited (“The Company”) as of 31st March 2019 in conjunction with our audit of the financial statements of the Company for the period ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is 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 (‘ICAI’). 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 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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with 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 included obtaining an understanding of internal financial controls over financial reporting, assessing 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 auditor’s 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
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
329
for GOYAL RAJESH AND COMPANY
Chartered Accountants
FRN: 003337C
UDIN : 19403982AAAAAY6488
(CA VISHAL GUPTA)
Partner
M.No.: 403982
B-8, MARWA HOUSE, OPP. SINGH DWAR,
NEW COLONY, JAIPUR-302001 RAJASTHAN
Place : Jaipur
Date : 07.08.2019
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 authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
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.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2019, except of the following observations as mentioned below, 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:
a) No internal control matrix has been prepared by the organization. Only the rules and regulation prescribed for government owned companies are available.
b) Internal Departmental Audit in relation to expenditure has been carried out for the year under audit but report was not produced before us.
c) There is lack of internal control in reconciliation & balance confirmation under several heads.
d) Physical verification of fixed assets and inventory has not been carried out.
e) There are various instances where proper provisions are not made in relevant period and then income/expense are booked on payment basis resulting into prior period items. This shows lack of internal control.
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
330
ANNEXURE “D” TO THE AUDITORS' REPORT
The Annexure referred to in our report to the members of GIRAL LIGNITE POWER LIMITED
for the period ending 31st March, 2019.
As required by Section 143(11) of Companies Act, 2013 and on the basis of the information and explanation given to us during the course of our audit, we report that:
(i) (a) No such records showing full particulars, including quantitative details and situation of fixed assets were maintained by the company.
(b) The fixed assets have not been physically verified by the management during the year and in the absence of the same, we are not in a position to comment on the discrepancies, if any, in relation to the existence of the assets, their location and action taken by the management.
(c) As per the information and explanations given to us by the management, title deeds are available with the company but the same have not been transferred with the company. Further, we were not provided with the complete documents of land and building constructed by the company on land of other discoms for our verification.
(ii) No physical verification of inventory has been carried out by the management at regular intervals and in the absence of the same, we are unable to comment upon the discrepancies, if any.
(iii) 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, thus, clause (iii) of Para 3 of the order is not applicable to the company. However, as observed by us, the Register as prescribed under section 189 of the Companies Act, 2013 is not maintained.
(iv) The provisions of section 185 and 186 of the Companies Act, 2013 have been complied with.
(v) The company has not accepted such deposits, thus, clause (v) of Para 3 of the order is not applicable to the company.
(vi) The company is not required to maintain cost records and thus this clause is not applicable to the company.
(vii) (a) the company is generally regular in depositing undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities. However, there are old unreconciled balances in statutory liabilities head in books of accounts for which details are not maintained by the unit.
(b) there are no dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax which have not been deposited on account of any dispute.
(viii) The company has not defaulted in repayment of loans or borrowings to a financial institution, bank, Government or dues to debenture holders except minor default of 1 day in two quarters out of four. However no such default exist as on balance sheet date.
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
331
for GOYAL RAJESH AND COMPANY
Chartered Accountants
FRN: 003337C
UDIN : 19403982AAAAAY6488
(CA VISHAL GUPTA)
Partner
M.No.: 403982
B-8, MARWA HOUSE, OPP. SINGH DWAR,
NEW COLONY, JAIPUR-302001 RAJASTHAN
Place : Jaipur
Date : 07.08.2019
(ix) The company had not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the audit period, thus, clause (ix) of Para 3 of the order is not applicable to the company.
(x) No fraud by the company or on the company by its officers or employees has been noticed or reported during the year.
(xi) Managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) The company is not a Nidhi Company, thus, clause (xii) of Para 3 of the order is not applicable to the company.
(xiii) All transactions with the related parties are in compliance with Section 177 and Section 188 of the Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements, etc as required by the applicable Indian Accounting Standards.
(xiv) The company hasn’t made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) The company hasn’t entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of the Companies Act, 2013.
(xvi) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934, thus, clause (xvi) of Para 3 of the order is not applicable to the company.
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
332
st BALANCE SHEET AS AT 31 MARCH, 2019
Particulars NotesAs at
st31 March, 2019
As atst31 March, 2018
I ASSETS
1 Non-Current Assets
(a) Property, Plant and Equipment 1 89,705.16 97,336.27
(b) Capital work-in-progress - -
(c) Other non current assets 2 0.78 0.78
Total Non-Current Assets 89,705.94 97,337.05
2 Current Assets
(a) Inventories 3 2,439.02 2,444.75
(b) Financial Assets
(i) Investments - -
(ii) Trade Receivable 4 84.11 1.25
(iii) Cash and cash equivalents 5 38.17 7.65
(iv) Others financial assets 6 31.01 127.41
(c) Current Tax Assets (Net) - -
(d) Other Current Assets 7 1,542.21 1,571.53
Total Current Assets 4,134.53 4,152.59
Regulatory deferral account debit balances 8 9,315.18 9,860.52
Total Assets 1,03,155.65 1,11,350.16
II EQUITY AND LIABILITIES EQUITY
(a) Equity Share capital 9 37,005.00 37,005.00
(b) Other Equity 10 (1,26,477.02) (94,063.80)
Total Equity (89,472.02) (57,058.80)
LIABILITIES
1 Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings 11 23,509.98 30,259.42
(ii) Other financial liabilities 12 0.19 -
(b) Provisions - -
(c) Deferred tax liabilities (Net) - -
(d) Other non-current liabilities - -
Total Non-Current Liabilities 23,510.18 30,259.42
(Amount in Lakhs)CIN : U40109RJ2006SGC023356
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
333
2 Current Liabilities
(a) Financial Liabilities
(i) Borrowings - -
(ii) Trade payables 13
- Total outstanding dues of micro and small enterprises - -
- Total outstanding dues of creditors other than micro and small enterprises 3,319.48 3,273.70
(iii) Other financial liabilities 14 1,65,787.67 1,34,864.31
(b) Other current liabilities 15 6.54 7.87
(c) Provisions 16 3.80 3.65
(d) Current Tax Liabilities (Net)
Total Current Liabilities 1,69,117.49 1,38,149.53
Total Equity and Liabilities 1,03,155.65 1,11,350.16
SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS I & II
(Amount in Lakhs)
Particulars NotesAs at
st31 March, 2019
As atst31 March, 2018
Place : JaipurDate : 07.08.2019
For and on behalf of Board of Directors As per our separate report of even date
For GOYAL RAJESH & CO.
Chartered Accountants
FRN 003337C
UDIN : 19403982AAAAAY6488
(P. RAMESH, IAS)
Chairman
DIN-03551794
(H.S. CHARAN)
Managing Director
DIN-8410368
(RAJESH KHANDELWAL) Chief Financial OfficerPAN No.- ABZPK2417K
(HITESH SHARMA)Company SecretaryM No.- ACS25147
(VISHAL GUPTA)Partner
M No.- 403982
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
334
STATEMENT OF PROFIT AND LOSS stFOR THE YEAR ENDED 31 MARCH 2019
ParticularsFor the year ended on
st31 March, 2019Notes For the year ended on
st31 March, 2018
INCOME
Revenue From Operations 17 (4,902.00) -
Other Income 18 13.85 236.96
Total Income (4,888.15) 236.96
EXPENSES
Cost of materials consumed 19 2,048.41 74.38
Repair & Maintenance 20 174.70 33.34
Employee benefits expense 21 574.83 420.34
Finance costs 22 15,981.91 15,063.76
Depreciation and amortization expense 1 7,753.84 7,758.48
Other expenses 23 446.05 486.36
Total expenses 26,979.73 23,836.65
Profit/(loss) before tax and rate regulated activities (31,867.88) (23,599.68)
Add: Movement in regulatory deferral account balances 24 (545.34) (545.34)
Profit/(loss) before tax (32,413.22) (24,145.02)
Tax expense:
(1) Current tax - -
(2) Deferred tax - -
Profit for the year (32,413.22) (24,145.02)
Other Comprehensive Income
A (i) Items that will not be reclassified to profit or loss - -
(ii) Income tax relating to items that will not bereclassified to profit or loss - -
B (i) Items that will be reclassified to profit or loss - -
(ii) Income tax relating to items that will be reclassified to profit or loss - -
Total Comprehensive Income for the period (Comprising Profit /(Loss) and Other Comprehensive Income for the period) (32,413.22) (24,145.02)
Earnings per equity share :
(1) Basic & Diluted including regulatory deferral account balances 25 (8.76) (6.52)
(3) Basic & Diluted excluding regulatory deferral account balances 25 (8.61) (6.38)
SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS" I & II
CIN : U40109RJ2006SGC023356(Amount in Lakhs)
Place : JaipurDate : 07.08.2019
For and on behalf of Board of Directors As per our separate report of even date
For GOYAL RAJESH & CO.
Chartered Accountants
FRN 003337C
UDIN : 19403982AAAAAY6488
(P. RAMESH, IAS)
Chairman
DIN-03551794
(H.S. CHARAN)
Managing Director
DIN-8410368
(RAJESH KHANDELWAL) Chief Financial OfficerPAN No.- ABZPK2417K
(HITESH SHARMA)Company SecretaryM No.- ACS25147
(VISHAL GUPTA)Partner
M No.- 403982
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
335
STSTATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31 MARCH 2019
(A) CASH FLOW FROM OPERATING ACTIVITIES:
Profit before tax (32,413.22) (24,145.02)
Adjustments for
Depreciation 7,753.84 7,758.48
Net movement in revenue deferral account 545.34 545.34
Provision for employee benefits 0.14 8,299.32 2.96 8,306.78
Operating Profit before Working Capital Changes (24,113.90) (15,838.25)
Changes in working Capital
(Increase)/Decrease in Inventories 5.73 48.87
(Increase)/Decrease in Trade Receivable (82.86) 1,134.92
(Increase)/Decrease in Other financial assets 96.39 (68.38)
(Increase)/Decrease in Other Current Assets 29.31 235.05
Increase/(Decrease) in Other financial liabilities 30,923.56 27,285.04
Increase/(Decrease) in Trade Payables 45.78 (4,407.62)
Increase/(Decrease) in Other current liabilities (1.33) 1.46
Increase/(Decrease) in Current tax assets & liabilities - 31,016.58 - 24,229.33
Cash Generated from Operations 6,902.68 8,391.09
Less: Tax Paid - -
Net Cash Flow from Operating Activities 6,902.68 8,391.09
(B) CASH FLOW FROM INVESTING ACTIVITIES:
Transfer of Fixed Assets from RRVUNL - -
Purchase of Fixed Assets (122.72) (124.68)
Sale of Fixed Assets - -
Transfer of Regulatory Assets from RVUNL - -
Net Cash Flow from Investing Activities (122.72) (122.72) (124.68) (124.68)
Cash Flow from Financial Activities
Issue of Equity Shares - -
Repayment of Borrowings (6,749.44) (8,274.44)
Proceeds from Borrowings - -
Net Cash Flow from Financing Activities (6,749.44) (6,749.44) (8,274.44) (8,274.44)
Net increase(Decrease) in Cash & Cash Equivalent 30.52 (8.04)
Opening Cash & Cash Equivalent 7.65 15.69
Closing Cash & Cash Equivalent 38.17 7.65
1. The above cash flow statement has been prepared under the indirect method set out in Ind AS -7 'Statement of Cash Flows'.
2. For the purpose of Statement of Cash Flow, Cash and Cash Equivalents comprises the followings:
Particulars 2018-19 2017-18
CIN : U40109RJ2006SGC023356(Amount in Lakhs)
ParticularsAs at March
31, 2019As at March
31, 2018
(Amount in Lakhs)
Balance with Banks 38.17 7.65 Cash in hand* 0.00 0.00
Total 38.17 7.65* The amount of cash in hand is Rs.299 (P.Y. Rs. 246)
Place : JaipurDate : 07.08.2019
For and on behalf of Board of Directors As per our separate report of even date
For GOYAL RAJESH & CO.
Chartered Accountants
FRN 003337C
UDIN : 19403982AAAAAY6488
(P. RAMESH, IAS)
Chairman
DIN-03551794
(H.S. CHARAN)
Managing Director
DIN-8410368
(RAJESH KHANDELWAL) Chief Financial OfficerPAN No.- ABZPK2417K
(HITESH SHARMA)Company SecretaryM No.- ACS25147
(VISHAL GUPTA)Partner
M No.- 403982
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
336
CIN : U40109RJ2006SGC023356
STATEMENTS OF CHANGES IN EQUITY
For the year ended 31 March 201
Balance as at 1st April 2018 37,005
Changes in equity during the year -
Balance as at 31st March 2019 37,005
For the year ended 31st March 2018 (Amount in Lacs)
Balance as at 1st April 2017 37,005
Changes in equity during the year -
Balance as at 31st March 2018 37,005
st 9 (Amount in Lakhs)
A. Equity Share Capital
Particulars Reserve and surplus Total
Capital Securities Retained Reserve Premium Earnings
Reserve
As at 1st April 2018 - - (94,063.80) (94,063.80)
Changes in accounting policy or prior period errors - - - -
Restated balance at the beginning of the reporting period - - (94,063.80) (94,064)
Total Comprehensive Income for the year - - (32,413.22) (32,413.22)
Cash dividends - - - -
Dividend distribution tax on cash dividend - - - -
Transfer to retained earnings - - - -
At 31st March 2019 - - (1,26,477.02) (1,26,477.02)
B. Other Equity
(Amount in Lakhs)
(Amount in Lakhs)
Particulars Reserve and surplus
Capital Securities Retained Reserve Premium Earnings Total
Reserve
As at 1st April 2017 - - (69,918.77) (69,918.77)
Changes in accounting policy or prior period errors - - - -
Restated balance at the beginning of the reporting period - - (69,918.77) (69,918.77)
Total Comprehensive Income for the year - - (24,145.02) (24,145.02)
Cash dividends - - - -
Dividend distribution tax on cash dividend - - - -
Transfer to retained earnings - - - -
As at 31st March 2018 - - (94,063.80) (94,063.80)
Place : JaipurDate : 07.08.2019
For and on behalf of Board of Directors As per our separate report of even date
For GOYAL RAJESH & CO.
Chartered Accountants
FRN 003337C
UDIN : 19403982AAAAAY6488
(P. RAMESH, IAS)
Chairman
DIN-03551794
(H.S. CHARAN)
Managing Director
DIN-8410368
(RAJESH KHANDELWAL) Chief Financial OfficerPAN No.- ABZPK2417K
(HITESH SHARMA)Company SecretaryM No.- ACS25147
(VISHAL GUPTA)Partner
M No.- 403982
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
337
GIRAL LIGNITE POWER LIMITED
SIGNIFICANT ACCOUNTING POLICIES
A. Company Information
1. Background
Giral Lignite Power Limited (the “Company”) is a Company limited by shares (CIN:
U40109RJ2006SGC023356), incorporated and domiciled in India. Company is a wholly
owned subsidiary of Rajasthan Rajya Vidyut Utpadan Nigam Limited. The address of the
Company’s registered office is Vidyut Bhawan, Janpath, Jyoti Nagar, Jaipur - 302005 (Raj.).
The Company is primarily involved in the generation and sale of bulk power to State Power
Utilities.
2. Statement of Compliance
These financial statements are prepared on accrual basis of accounting and comply in all
material aspects with the Indian Accounting Standards (Ind AS) notified under the
Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendments
thereto, the Companies Act, 2013 (to the extent notified and applicable), applicable
provisions of the Companies Act, 1956, and the provisions of the Electricity Act, 2003 to the
extent applicable.
These financial statements were authorized for issue by Board of Directors on 07.08.2019.
Basis of measurement
The Company generally follows Mercantile System of Accounting and recognizes significant
items of income and expenditure on accrual basis. The financial statements have been
prepared on the historical cost basis.
3. Functional and presentation currency
These financial statements are presented in Indian Rupees (INR), which is the Company’s
functional currency. All financial information presented in INR has been rounded to the
Lakhs, except as stated otherwise.
4. Current and non-current classification
The Company presents assets and liabilities in the balance sheet based on current/non-
current classification.
An asset is current when it is:
• Expected to be realized or intended to be sold or consumed in normal operating cycle;
• Held primarily for the purpose of trading;
• Expected to be realized within twelve months after the reporting period; or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in normal operating cycle;
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
338
• It is held primarily for the purpose of trading;
• It is due to be settled within twelve months after the reporting period; or
• There is no unconditional right to defer settlement of the liability for at least twelve
months after the reporting period.
All other liabilities are classified as non-current.
B. Significant accounting policies
1. Property Plant & Equipment (Ind AS 16)
i. Recognition, Measurement and De-recognition
a. Items of Property, Plant and Equipment are measured at cost less accumulated
depreciation/amortization and accumulated impairment losses. Cost includes
expenditure that is directly attributable to bringing the asset, net of CENVAT/GST
Credit but inclusive of non-refundable taxes & duties, to the location and condition
necessary for it to be capable of operating in the manner intended by management.
b. When parts of an item of property, plant and equipment have different useful lives, they
are recognized separately.
c. In the case of assets put to use, where final settlement of bills with contractors is yet to
be effected, capitalization is done on provisional basis subject to necessary adjustment
in the year of final settlement.
d. Assets and systems common to more than one generating unit are capitalized on the
basis of engineering estimates/assessments.
e. Expenditure on major inspection and overhauls of production plant is capitalized,
when it meets the asset recognition criteria.
f. Items of spare parts, stand-by equipment and servicing equipment which meet the
definition of property, plant and equipment are capitalized. Other spare parts are
carried as inventory and recognized in the statement of profit and loss on consumption.
g. Subsequent expenditure is recognized as an increase in the carrying amount of the
asset when it is probable that future economic benefits deriving from the cost incurred
will flow to the enterprise and the cost of the item can be measured reliably.
h. Property, plant and equipment are derecognized when no future economic benefits are
expected from their use or upon their disposal. Gains and losses on disposal of an item
of property, plant and equipment are determined by comparing the proceeds from
disposal with the carrying amount of property, plant and equipment, and are
recognized in the statement of profit and loss.
i. Pending receipt of the completion reports in respect of capital works, the works
completed are transferred to Property, plant and equipment on the basis of the
statements approved by the head of the project.
ii. Depreciation/amortization
a. Depreciation is being charged on straight line method following the rates and
methodology notified by the Rajasthan Electricity Regulatory Commission (Terms and
Conditions for Determination of Tariff) Regulations generally in accordance with the
provision of Schedule II of the Companies Act, 2013
b. Depreciation on additions to/deductions from property, plant and equipment during
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
339
the year is charged on pro-rata basis from/up to the day on in which the asset is
available for use/disposal.
c. When it is probable that future economic benefits deriving from the cost incurred will
flow to the enterprise and the cost of the item can be measured reliably, subsequent
expenditure on a PPE along-with its unamortized depreciable amount is charged off
prospectively over the revised useful life determined by technical assessment.
2. Capital work-in-progress
i. The cost of self-constructed assets includes the cost of materials & direct labour, any
other costs directly attributable to bringing the assets to the location and condition
necessary for it to be capable of operating in the manner intended by management and
borrowing costs.
ii. Expenses directly attributable to construction of property, plant and equipment
incurred till they are ready for their intended use are identified and allocated on a
systematic basis on the cost of related assets.
3. Leases
Accounting for finance leases
Leases of Property, Plant and Equipment where the Company, as lessee has substantially all
risks and rewards of ownership are classified as finance lease. On initial recognition, assets
held under finance leases are recorded as Property, Plant and Equipment and the related
liability is recognized under borrowings. At inception of the lease, finance leases are recorded
at amounts equal to the fair value of the leased asset or, if lower, the present value of the
minimum lease payments. Minimum lease payments made under finance leases are
apportioned between the finance expense and the reduction of the outstanding liability.
Accounting for operating leases
Leases in which a significant portion of the risks and rewards of ownership are not
transferred to the Company as lessee are classified as operating lease. Payments made under
operating leases are recognized as an expense over the lease term.
4. Borrowing Costs
i. Borrowing costs consist of interest expense calculated using the effective interest
method as described in Ind AS 109 - 'Financial Instruments'.
ii. Borrowing costs that are directly attributable to the acquisition, construction/
exploration/development or erection of qualifying assets are capitalized as part of cost
of such asset until such time the assets are substantially ready for their intended use.
Qualifying assets are assets which take a substantial period of time to get ready for their
intended use or sale. Capitalization of the borrowing costs in respect of General
Borrowing used for the purpose of obtaining a qualifying is computed based on the
weighted average cost of such borrowing that are outstanding during the period and
used for the acquisition, construction/exploration or erection of the qualifying asset.
iii. Capitalization of borrowing costs ceases when substantially all the activities necessary
to prepare the qualifying assets for their intended uses are complete.
iv. Other borrowing costs are recognized as an expense in the year in which they are
incurred.
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
340
5. Inventories
i. Inventories are valued at the lower of cost and net realizable value. Cost includes cost of
purchase, cost of conversion and other costs incurred in bringing the inventories to
their present location and condition. Weighted average method has been used to work
out the pricing of issues and valuation of inventories.
ii. Low value items of consumables are fully charged to statement of profit and loss.
6. Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and
short-term deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value.
7. Provisions, Contingent Liabilities and Contingent Assets
i. Provisions are recognized when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation a reliable estimate
can be made of the amount of the obligation.
ii. Contingent Liabilities are not recognized but are disclosed in the notes. These are
reviewed at each balance sheet date and are adjusted to reflect the current estimate.
iii. Contingent Assets are not recognized but are disclosed in the financial statements.
These are reviewed at each balance sheet date and are adjusted to reflect the current
estimate.
8. Rate Regulated Activities
Expense/income recognized in the Statement of Profit & Loss to the extent recoverable from
or payable to the beneficiaries in subsequent periods as per RERC Tariff Regulations are
recognized as ‘Regulatory deferral account balances’. It is being amortized during the useful
life of plant which is assumed 25 years by the RERC.
Regulatory deferral accounts balances are adjusted from the year in which the same become
recoverable from or payable to the beneficiaries.
9. Revenue Recognition
Effective April 1, 2018, the Company adopted Ind AS 115 “Revenue from Contracts with
Customers” which introduces the five-step model described as follows:-
1. Identify the contract with a customer.
2. Identify the separate performance obligations in the contract.
3. Determine the transaction Price.
4. Allocate the transaction price to the separate performance obligations.
5. Recognize revenue when (or as) each performance obligation is satisfied.
a. Revenue from operations:
Effective 1 April 2018, the Company has adopted Ind AS 115 “Revenue from Contracts
with Customers” using the Cumulative Effective Method, applied to the contracts that
were not completed as of 1 April 2018 and therefore the comparatives have not been
restated and continues to be reported as per Ind AS 18 “Revenue” and Ind AS 11
“Construction Contracts”. The details of accounting policies as per Ind AS 18 and Ind
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
341
AS 11 are disclosed separately if they are different from those under Ind AS 115.
Revenue from sale of power is measured based on the consideration that is specified in
a contract with a customer or is expected to be received in exchange for the products or
services. The company recognizes revenue when (or as) control over the products or
services is transferred to a customer in an amount that reflects the consideration we
expect to receive in exchange for those products or services.
In the comparative period, revenue from sale of power was accounted for on accrual
basis and was billed on Discoms as per the regulation of Rajasthan Electricity
Regulatory Commission. The energy sold to each Discom has been arrived at by
apportioning the total units sold amongst JVVNL, AVVNL and JDVVNL in the approved
ratio determined from time to time.
The Company presents revenues net of indirect taxes in statement of Profit and loss.
b. Trade receivables and Contract Balances
The company recognises contract assets on an amount equals to consideration related
to goods and services already transferred to customers when the right to receive such
consideration is conditioned upon something other than passage of time.
Unconditional right to receive consideration are recognised as trade receivable.
Trade receivable and contract assets are subject to impairment as per Ind AS 109
‘Financial Instruments’.
The company recognises amount already received from customer against which
transfer for goods and services are not made as contract liability.
c. Interest Income
For all financial instruments measured at amortized cost and interest-bearing financial
assets classified as fair value through other comprehensive income, interest income is
recorded using the effective interest rate (EIR). The EIR is the rate that exactly
discounts the estimated future cash receipts over the expected life of the financial
instrument or a shorter period, where appropriate, to the net carrying amount of the
financial asset. When calculating the effective interest rate, the Company estimates the
expected cash flows by considering all the contractual terms of the financial
instrument (for example, prepayment, extension, call and similar options) but does not
consider the expected credit losses. Interest income is included in other income in the
statement of profit or loss.
d. Dividend
Dividend Income is recognized when the Company’s right to receive is established
which generally occurs when the shareholders approve the dividend.
10. Other Income
Other Income is recognized in the statement of profit and loss when increase in future
economic benefits related to an increase in an asset op a decrease of a liability has arisen that
can be measured reliably.
i. Sale of scrap is accounted for as and when sold.
ii. The rebate (by way of reduction in the interest rate) in interest under AG&SP scheme of
Govt. of India on loan given by PFC are directly deducted from interest cost and not
separately shown as income and accordingly net interest is charged to Statement of
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
342
Profit and Loss.
iii. Interest on loans and advances to staff is recovered after completion of recovery of
principal amount and is recorded/ accounted for on receipt basis.
11. Employee Benefits
The retirement benefits in respect of pension & gratuity liabilities of personnel have been
funded through trust on the basis of contribution by the RVUNL and other successor entities
of erstwhile RSEB. However, the liability for leave encashment is accounted for on actual
basis.
11.1 Short Term Benefit
Short-term employee benefit obligations are measured on an undiscounted basis
and are expensed as the related service is provided.
A liability is recognized for the amount expected to be paid under performance
related pay if the Company has a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee and the obligation can
be estimated reliably.
11.2 Post-Employment benefits
Employee benefit that are payable after the completion of employment are Post-
Employment Benefit (other than termination benefit). These are of two types:
11.2.1 Defined contribution plans
Defined contribution plans are those plans in which an entity pays fixed
contribution to separate entities under the plan and will have no legal or
constructive obligation to pay further amounts to employee in future under the
Plan. Provident Fund and Employee State Insurance are Defined Contribution
Plans in which company pays a fixed contribution and will have no further
obligation.
11.2.2 Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined
contribution plan.
Company pays Gratuity as per provisions of the Gratuity Act, 1972. The Company’s
net obligation in respect of defined benefit plans is calculated separately for each
plan by estimating the amount of future benefit that employees have earned in
return for their service in the current and prior periods; that benefit is discounted to
determine its present value. Any unrecognized past service costs and the fair value
of any plan assets are deducted. The discount rate is based on the prevailing market
yields of Indian government securities as at the reporting date that have maturity
dates approximating the terms of the Company’s obligations and that are
denominated in the same currency in which the benefits are expected to be paid.
The calculation is performed annually by a qualified actuary using the projected
unit credit method. When the calculation results in a liability to the company, the
present value of liability is recognized as provision for employee benefit. Any
actuarial gains or losses are recognized in OCI in the period in which they arise.
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
343
11.3 Long Term Employee Benefit
Benefits under the Company’s leave encashment constitute other long term
employee benefits. Leave Encashment is determined based on the available leave
entitlement at the end of the year.
12. Income Tax
i. Current tax expense is recognized in profit or loss except to the extent that it relates to
items recognized directly in other comprehensive income or equity, in which case it is
recognized in OCI or equity.
ii. Deferred tax is recognized using the balance sheet method, providing for temporary
differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes.
13. Other Miscellaneous Expenditure
i. Expenses on training and recruitment, research and development are charged to
revenue.
ii. Claims for grade difference, shortage of coal etc. lodged on coal companies are
accounted for as and when the credit notes are received by adjusting/recognizing the
same in the Profit and Loss account in the year of its receipt, irrespective of the period to
which it pertains. No provision is made for above claims due to uncertainty of its
receipt.
iii. Generation linked incentive and productivity award admissible to the
officers/employees of the Power Stations are accounted for on cash basis.
14. Earnings per Share
i. Basic earnings per equity share are computed by dividing the net profit or loss
attributable to equity shareholders of the Company by the weighted average number of
equity shares outstanding during the financial year.
ii. Diluted earnings per equity share is computed by dividing the net profit or loss
attributable to equity shareholders of the Company by the weighted average number of
equity shares considered for deriving basic earnings per equity share and also the
weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.
iii. Basic and diluted earnings per equity share are also computed using the earnings
amounts excluding the movements in regulatory deferral account balances.
15. Cash flow statement
Cash flow statement is prepared in accordance with the indirect method prescribed in Ind AS
7 ‘Statement of Cash Flows’.
16. Business Combination involving entities or business under common control
Business combinations involving entities or businesses under common control are
accounted for using the pooling of interests method.
The pooling of interest method is considered to involve the following:
i. The assets and liabilities of the combining entities are reflected at their carrying
amounts.
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
344
ii. No adjustments are made to reflect fair values, or recognize any new assets or liabilities.
The only adjustments that are made are to harmonize accounting policies.
iii. The financial information in the financial statements in respect of prior periods are
restated as if the business combination had occurred from the beginning of the
preceding period in the financial statements, irrespective of the actual date of the
combination. However, if business combination had occurred after that date, the prior
period information is restated only from that date.
17. Financial Instruments
i. Financial assets
All financial assets are recognized initially at fair value plus or minus, in the case of
financial assets not recorded at fair value through profit or loss, transaction costs that
are attributable to the acquisition or issue of the financial asset.
Subsequently, a financial asset is measured at Amortized Cost or fair value through
other comprehensive income or fair value through profit and loss depending upon the
fulfillment of criteria. Expected credit losses are recognized for all financial assets
subsequent to initial recognition other than financials assets in FVTPL category. The
expected credit losses are measured as lifetime expected credit losses if the credit risk
on financial asset increases significantly since its initial recognition
A financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual cash flows in a transaction in
which substantially all of the risks and rewards of ownership of the financial asset are
transferred or in which the Company neither transfers nor retains substantially all of
the risks and rewards of ownership and does not retain control of the financial asset.
ii. Financial Liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair
value through profit or loss, or as derivatives designated as hedging instruments in an
effective hedge, as appropriate. All financial liabilities are recognized initially at fair
value and, in the case of borrowings and payables, net of directly attributable
transaction costs. The Company’s financial liabilities include trade and other payables
and borrowings.
After initial measurement, such financial liabilities are subsequently measured at
amortized cost using the effective interest rate (EIR) method. Transaction costs
(incremental costs) are included in calculation of amortization cost using effective
interest method. The EIR amortization is included in finance costs in the statement of
profit or loss or capitalized as borrowing cost in respect of a qualifying asset. This
category generally applies to borrowings, deposits and other contractual liabilities.
Financial liabilities designated upon initial recognition at fair value through profit or
loss are designated at the initial date of recognition, and only if the criteria in Ind AS
109 are satisfied. All other changes in fair value of such liability are recognized in the
statement of profit or loss. The Company has not designated any financial liability as at
fair value through profit and loss.
18. Material prior period errors
Material prior period errors are corrected retrospectively by restating the comparative
amounts for the prior periods presented in which the error occurred. If the error occurred
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
345
before the earliest period presented, the opening balances of assets, liabilities and equity for
the earliest period presented, are restated.
C. Use of estimates and management judgments
The preparation of financial statements requires management to make judgments, estimates
and assumptions that may impact the application of accounting policies and the reported
value of assets, liabilities, income, expenses and related disclosures concerning the items
involved as well as contingent assets and liabilities at the balance sheet date. The estimates
and management’s judgments are based on previous experience and other factors
considered reasonable and prudent in the circumstances. Actual results may differ from
these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimates are revised and in
any future periods affected.
In order to enhance understanding of the financial statements, information about significant
areas of estimation, uncertainty and critical judgments in applying accounting policies that
have the most significant effect on the amounts recognized in the financial statements is as
under:
1. Useful life of Property, Plant and Equipment
Useful life of assets of generation of electricity business is determined by RERC Tariff
Regulation in accordance with Schedule II of Companies Act, 2013.
The estimated useful life of property, plant and equipment is based on a number of
factors including the effects of obsolescence, demand, competition and other economic
factors (such as the stability of the industry and known technological advances) and
the level of maintenance expenditures required to obtain the expected future cash flows
from the asset.
2. Provisions and contingencies
The assessments undertaken in recognizing provisions and contingencies have been
made in accordance with Ind AS 37, ‘Provisions, Contingent Liabilities and Contingent
Assets’. The evaluation of the likelihood of the contingent events has required best
judgment by management regarding the probability of exposure to potential loss.
3. Materiality
Whether individual items or group of items need to be disclosed separately in the
primary financial statements or in the notes depends on their materiality. Materiality is
judged by reference to the size and nature of the item. The deciding factor is whether the
omission or misstatement could, individually or collectively, influence the economic
decisions that users make on the basis of the financial statements. In particular
circumstances either the nature or the amount of an item or an aggregate of items could
be the determining factor. Further, an entity may also be required to present separately
immaterial items, when required by law.
4. Going Concern
The financial statements have been prepared on fundamental accounting assumption
of Going concern which has been assessed and reviewed for the year by the
management.
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
346
D. Recent Accounting Pronouncements
Ind AS 116 Leases: On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS
116, Leases. Ind AS 116 will replace the existing leases Standard, Ind AS 17 Leases, and
related Interpretations. The Standard sets out the principles for the recognition,
measurement, presentation and disclosure of leases for both parties to a contract i.e., the
lessee and the lessor. Ind AS 116 introduces a single lessee accounting model and requires a
lessee to recognize assets and liabilities for all leases with a term of more than twelve months,
unless the underlying asset is of low value. Currently, operating lease expenses are charged
to the statement of Profit & Loss. The Standard also contains enhanced disclosure
requirements for lessees. Ind AS 116 substantially carries forward the lessor accounting
requirements in Ind AS 17.
The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 1,
2019. The standard permits two possible methods of transition:
1) Full retrospective– Retrospectively to each prior period presented applying Ind AS 8
Accounting Policies, Changes in Accounting Estimates and Errors.
2) Modified retrospective– Retrospectively, with the cumulative effect of initially
applying the Standard recognized at the date of initial application.
Under modified retrospective approach, the lessee records the lease liability as the
present value of the remaining lease payments, discounted at the incremental
borrowing rate and the right of use asset either as:
a) Its carrying amount as if the standard had been applied since the commencement date,
but discounted at lessee’s incremental borrowing rate at the date of initial application
or
b) An amount equal to the lease liability, adjusted by the amount of any prepaid or
accrued lease payments related to that lease recognized under Ind AS 17 immediately
before the date of initial application.
Certain practical expedients are available under both the methods.
The Company is currently evaluating the effect of this amendment on the standalone
financial statements.
Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments: On March 30, 2019, Ministry
of Corporate Affairs has notified Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments
which is to be applied while performing the determination of taxable profit (or loss), tax bases,
unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax
treatments under Ind AS 12. According to the appendix, companies need to determine the
probability of the relevant tax authority accepting each tax treatment, or group of tax treatments,
that the companies have used or plan to use in their income tax filing which has to be considered to
compute the most likely amount or the expected value of the tax treatment when determining
taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates.
The standard permits two possible methods of transition –
i) Full retrospective approach – Under this approach, Appendix C will be applied
retrospectively to each prior reporting period presented in accordance with Ind AS 8 –
Accounting Policies, Changes in Accounting Estimates and Errors, without using hindsight
and
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
347
ii) Retrospectively with cumulative effect of initially applying Appendix C recognized by
adjusting equity on initial application, without adjusting comparatives.
The effective date for adoption of Ind AS 12 Appendix C is annual periods beginning on or after April
1, 2019. The Company will adopt the standard on April 1, 2019 and has decided to adjust the
cumulative effect in equity on the date of initial application i.e. April 1, 2019 without adjusting
comparatives.
The Company is currently evaluating the effect of this amendment on the standalone financial
statements.
Amendment to Ind AS 12 – Income taxes : On March 30, 2019, Ministry of Corporate Affairs
issued amendments to the guidance in Ind AS 12, ‘Income Taxes’, in connection with accounting
for dividend distribution taxes.
The amendment clarifies that an entity shall recognise the income tax consequences of dividends
in profit or loss, other comprehensive income or equity according to where the entity originally
recognised those past transactions or events.
Effective date for application of this amendment is annual period beginning on or after April 1,
2019. The Company is currently evaluating the effect of this amendment on the standalone
financial statements.
Amendment to Ind AS 19 – plan amendment, curtailment or settlement- On March 30, 2019,
Ministry of Corporate Affairs issued amendments to Ind AS 19, ‘Employee Benefits’, in connection
with accounting for plan amendments, curtailments and settlements.
The amendments require an entity:
a) To use updated assumptions to determine current service cost and net interest for the
remainder of the period after a plan amendment, curtailment or settlement; and
b) To recognise in profit or loss as part of past service cost, or a gain or loss on settlement,
any reduction in a surplus, even if that surplus was not previously recognised because
of the impact of the asset ceiling.
Effective date for application of this amendment is annual period beginning on or after April 1,
2019. The Company is currently evaluating the effect of this amendment on the standalone
financial statements.
Place : JaipurDate : 07.08.2019
For and on behalf of Board of Directors As per our separate report of even date
For GOYAL RAJESH & CO.
Chartered Accountants
FRN 003337CUDIN : 19403982AAAAAY6488
(P. RAMESH, IAS)
Chairman
DIN-03551794
(H.S. CHARAN)
Managing Director
DIN-8410368
(RAJESH KHANDELWAL) Chief Financial OfficerPAN No.- ABZPK2417K
(HITESH SHARMA)Company SecretaryM No.- ACS25147
(VISHAL GUPTA)Partner
M No.- 403982
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
348
Note
No.
1-:
Non
-Curr
en
t A
ssets
: P
ropert
y,
Pla
nt
an
d E
quip
men
t(A
mou
nt
In L
acs)
Balan
ce a
s at
1st A
pril,
201
8
Busin
ess
Com
bina
tion
unde
r
com
mon
con
trol
Addi
tions
durin
g
2018
-19
Adju
stm
ents
*De
duct
ions
Balan
ce a
s at
Marc
h 31
, 201
9
Balan
ce a
s at
1st A
pril,
201
8
Busin
ess
Com
bina
tion
unde
r com
mon
cont
rol
Addi
tions
durin
g
2018
-19
Adju
stm
ents
*De
duct
ions
Balan
ce a
s at
Marc
h 31
, 201
9
Net
Bloc
k as
at
Marc
h 31
, 201
9
Net
Bloc
k as
at
April
1, 2
018
1La
nd &
Righ
ts 10
.1xx
70.61
--
-
-
70.61
12.10
0
-
-
-
-
--
70.61
70.61
2La
nd U
nder
Lea
seho
ld Tit
les10
.1xx
94.20
--
-
-
94.20
12.10
0
3.28
-
1.04
-
-4.3
289
.8890
.93
3Bu
ildin
gs10
.2xx
7,758
.14-
122.7
2
-
-
7,880
.86
12.20
0
827.9
4
-
325.8
4
-
-1,1
53.78
6,727
.076,9
30.19
4Hy
drau
lic W
orks
10
.3xx
7,861
.37-
-
-
-
7,861
.37
12.30
0
1,714
.22
-
494.9
3
-
-2,2
09.15
5,652
.226,1
47.15
5Pla
nt &
Mac
hine
ry
10.5x
x1,1
8,763
.99-
-
-
-
1,18,7
63.99
12.50
0
35,74
9.28
-
6,830
.18
-
-42
,579.4
676
,184.5
383
,014.7
1
6Lin
es, C
ables
and
Netw
ork
10.6x
x1,5
60.88
--
-
-
1,560
.88
12.60
0
574.8
5
-
82.84
-
-65
7.68
903.1
998
6.03
7Ve
hicle
s 10
.7xx
11.00
--
-
-
11.00
12.70
0
4.65
-
1.55
-
-6.2
04.7
96.3
5
8Fu
rnitu
re &
Fixt
ures
10
.8xx
18.58
--
-
-
18
.58
12
.800
7.7
4
-
2.39
-
-10
.138.4
510
.84
9Of
fice E
quipm
ent
10.9x
x13
.70-
-
-
-
13
.70
12
.900
4.9
7
-
1.26
-
-6.2
47.4
68.7
2
10Co
mput
ers &
Calu
lator
s10
.9xx
4.40
--
-
-
4.4
0
12
.900
0.8
4
-
0.28
-
-1.1
13.2
83.5
6
11Ca
pital
Spar
es16
2.94
--
-
-
16
2.94
95
.76
-
13.52
-
-10
9.28
53.66
67.18
Tota
l 1,
36,3
19.8
012
2.72
-
-
1,
36,4
42.5
2
38
,983
.53
7,
753.
84
-
-46
,737
.36
89,7
05.1
697
,336
.27
Balan
ce a
s at
1st A
pril,
201
7
Busin
ess
Com
bina
tion
unde
r
com
mon
con
trol
Addi
tions
durin
g
2017
-18
Adju
stm
ents
*De
duct
ions
Balan
ce a
s at
Marc
h 31
, 201
8
Balan
ce a
s at
1st A
pril,
201
7
Busin
ess
Com
bina
tion
unde
r com
mon
cont
rol
Addi
tions
durin
g
2017
-18
Adju
stm
ents
*De
duct
ions
Balan
ce a
s at
Marc
h 31
, 201
8
Net
Bloc
k as
at
Marc
h 31
, 201
8
Net
Bloc
k as
at
April
1, 2
017
1La
nd &
Righ
ts 10
.1xx
70.61
--
-
-
70.61
12.10
0
-
-
-
-
--
70.61
70.61
2La
nd U
nder
Lea
seho
ld Tit
les10
.1xx
92.18
-2.0
2
-
-
94.20
12.10
0
2.05
-
1.23
-
-3.2
890
.9390
.14
3Bu
ildin
gs10
.2xx
7,758
.14-
-
-
-
7,758
.14
12.20
0
532.6
6
-
295.2
9
-
-82
7.94
6,930
.197,2
25.48
4Hy
drau
lic W
orks
10
.3xx
7,861
.37-
-
-
-
7,861
.37
12.30
0
1,219
.29
-
494.9
3
-
-1,7
14.22
6,147
.156,6
42.08
5Pla
nt &
Mac
hine
ry
10.5x
x1,1
8,645
.30-
118.7
0
-
-
1,18,7
63.99
12.50
0
28,88
5.57
-
6,863
.71
-
-35
,749.2
883
,014.7
189
,759.7
2
6Lin
es, C
ables
and
Netw
ork
10.6x
x1,5
56.91
-3.9
7
-
-
1,560
.88
12.60
0
490.8
6
-
83.98
-
-57
4.85
986.0
31,0
66.04
7Ve
hicle
s 10
.7xx
11.00
--
-
-
11.00
12.70
0
3.10
-
1.55
-
-4.6
56.3
57.9
0
8Fu
rnitu
re &
Fixt
ures
10
.8xx
18.58
--
-
-
18.58
12.80
0
5.35
-
2.39
-
-7.7
410
.8413
.23
9Of
fice E
quipm
ent
10.9x
x13
.70-
-
-
-
13.70
12.90
0
3.71
-
1.26
-
-4.9
78.7
29.9
9
10Co
mput
ers &
Calu
lator
s10
.9xx
4.40
--
--
4.40
12.90
00.5
6-
0.28
--
0.84
3.56
3.84
11Ca
pital
Spar
es16
2.94
--
--
162.9
481
.89-
13.86
--
95.76
67.18
81.04
Tota
l 1,
36,1
95.1
112
4.68
--
1,36
,319
.80
31,2
25.0
47,
758.
48-
-38
,983
.53
97,3
36.2
71,
04,9
70.0
7
S.
NoPa
rticu
lars
Acco
unt
Code
DEPR
ECIA
TION
NE
T BL
OCK
Tang
ible
Asse
ts
Tang
ible
Asse
ts
S.
NoPa
rticu
lars
Acco
unt
Code
GROS
S BL
OCK
Acco
unt
Code
DEPR
ECIA
TION
NE
T BL
OCK
Acco
unt
Code
GROS
S BL
OCK
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
349
Details of PPE pledged as security for liabilities
Fixed AssetsAccount
Code
1 Land & Land Rights 10.1xx 70.61 70.61
2 Land Under Lease Hold 10.1xx 89.88 90.93
3 Buildings 10.2xx 6,727.07 6,930.19
4 Hydraulic Works 10.3xx 5,652.22 6,147.15
5 Plant & Machinery 10.5xx 76,184.53 83,014.71
6 Lines, Cables and Network 10.6xx 903.19 986.03
7 Vehicles 10.7xx - -
8 Furniture & Fixtures 10.8xx 8.45 10.84
9 Office Equipment 10.9xx 7.46 8.72
10 Computers & Calulators 10.9xx 3.28 3.56
S.No.
(Amount in Lakhs)
As at31 Mar, 2019
As at31 Mar, 2018
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
350
NOTES ON FINANCIAL STATEMENTS
NOTE No. 4-: Current Financial Assets : Trade Receivables
ParticularsAccount
CodeAs at
31 Mar, 2019
Unsecured, considered good
Receivable against sale of Power to JVVNL 23.802 66.92 -
Receivable against sale of Power to AVVNL 23.803 17.19 -
Receivable against sale of Power to JdVVNL 23.804 - 1.25
Total 84.11 1.25
NOTE No. 2-: Other Non-Current Assets
No Inventory is carried at fair value less cost to sell. Inventory is carried at cost.
Inventory of Rs. 3.15 lacs (P.Y. 11.34 lacs) has been recognized as expense. The details are as under:
NOTE No. 3-: Current Assets : Inventories
Particulars
Particulars
Account Code
Account Code
As at31 Mar, 2019
As at31 Mar, 2019
As at31 Mar, 2018
As at31 Mar, 2018
As at31 Mar, 2018
As at31 Mar, 2018
Security Deposit
Unsecured, considered good 28.915 0.78 0.78
Total 0.78 0.78
Raw Material
Coal Stock 21.101 176.43 176.43
Oil Stock 21.105 20.37 20.37
Stores and Spares 22.xxx 2,242.22 2,247.94
Total 2,439.02 2,444.75
Particulars 2018-19 2017-18
Fuel - -
Other Expenses 3.15 11.34
Total 3.15 11.34
There is no inventory pledged as security.
(Amount in Lakhs)
(Amount in Lakhs)
(Amount in Lakhs)
(Amount in Lakhs)
NOTE No. 5-: Current Financial Assets : Cash and Cash Equivalents
ParticularsAccount
CodeAs at
31 Mar, 2019
Balances with Banks
In current Accounts 24.301 & 24.401 38.17 7.65
*Cash in hand 24.110 0.00 0.00
Total 38.17 7.65
* The amount of cash in hand is Rs.299 (P.Y. Rs. 246)
(Amount in Lakhs)
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
351
NOTE No. 7-: Current Assets : Other Current Assets
ParticularsAccount
CodeAs at
31 Mar, 2019
Advance Against Capital Goods
Advance to Suppliers 25.200 1,412.13 1,416.01
Advance to Contractors 25.600 1.01 65.15
Others
Advance to Suppliers 25.200 8.10 45.15
Advance to Contractors 25.600 1.66 2.98
T.A. Advance 27.203 0.08 0.08
Other Advances 27.209 31.97 36.98
Other Misc. Advance 27.803 0.04 0.04
GST Recoverable 27.000 0.00 0.01
Service tax 46.335 0.16 0.16
Prepaid Expenses 28.820 87.06 4.97
Total 1,542.21 1,571.53
NOTE No. 8-: Regulatory Deferral Account Debit Balances
ParticularsAccount
CodeAs at
31 Mar, 2019
Rate Regulatory Assets 10.950
Opening Balance 9,860.52 10,405.87
Add: Addition made during the year:-
a) Transfer from RVUNL - -
b) Recognition for Rate Regulated - - -Income during the year
Less: Amortization during the year 545.34 545.34
Total 9,315.18 9,860.52
NOTE No. 6-: Other Current Financial Assets
ParticularsAccount
CodeAs at
31 Mar, 2019
Recoverable from Suppliers 28.810 0.44 0.44
Other Deposits 28.919 0.07 0.07
Recoverable from Contractors 28.811 29.44 126.30
Other Receivables 28.890 1.07 0.60
Total 31.01 127.41
(Amount in Lakhs)
(Amount in Lakhs)
(Amount in Lakhs)
As at31 Mar, 2018
As at31 Mar, 2018
As at31 Mar, 2018
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
352
NOTE No. 9-: Share Capital
The Reconcilliation of the Number of Shares Outstanding is set out below:
Particulars
Particulars
Account Code
No. of shares
As at31 Mar, 2019
As at31 Mar, 2019
Authorised Share Capital
Equity Shares of Rs. 10/- each (In No.) 3,750.00 3,750.00
Equity Shares of Rs. 10/- each (In Rs.) 37,500.00 37,500.00
Issued, Subscribed and Fully Paid up
Equity Shares of Rs. 10/- each Fully Paid (In No.) 3,700.50 3,700.50
Equity Shares of Rs. 10/- each Fully Paid (In Rs.) 54.600 37,005.00 37,005.00
Total 37,005.00 37,005.00
Shares outstanding at the begining of the year 3,700.50 3,700.50
Shares issued during the year - -
Shares bought back during the year - -
Shares outstanding at the end of the year 3,700.50 3,700.50
Name of Shareholder
Rajasthan Rajya Vidyut Utpadan Nigam Limited (Holding Compnay) 3,700.50 99.99% 3,700.50 99.99%
Total 3,700.50 99.99% 3,700.50 99.99%
1) The company has only one class of equity shares having par value of Rs. 10 per share. Each share holder is entitled to one vote per share.
2) Company has not declared any dividend during the year ended March 31, 2019.
3) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company. Company doesn't have any preferential amounts in the Balance Sheet.
As at 31 Mar. 2019 As at 20131 Mar, 8
No. ofShares held
% ofHolding
No. ofShares held
% ofHolding
(Amount in Lakhs)
NOTE No. 10-: Other Equity
ParticularsAccount
CodeAs at
31 Mar, 2019As at
31 Mar, 2018
Retained Earnings*
Opening balance (94,063.80) (69,918.77)
(+) Net Profit/(Net Loss) For the year (32,413.22) (24,145.02)
Total (1,26,477.02) (94,063.80)
* Retained earnings are the profits of the company earned till date net of appropriations.
(Amount in Lakhs)
Particulars of equity share holders holding more than 5% of the total number of equity share capital
As at31 Mar, 2018
As at31 Mar, 2018
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
353
NOTE No. 11-: Non-Current Financial Liabilities : Long Term Borrowings
ParticularsAccount
CodeAs at
31 Mar, 2019
A) Term Loans
I) From Others
Secured
Loan from PFC (10.50% - 14.00%) 53.550 1,558.69 4,416.57
Loan from PFC 07301015 (Unit-II) 53.550 16,527.18 19,537.75
Loan from PFC 07301022 (Unit-II) 53.550 12,848.41 15,181.24
Total 30,934.28 39,135.55
Less: Current maturities of Long term borrowings (Carried to Note No. 14)
Loan from PFC (10.50% - 14.00%) 1,525.00 3,050.00
Loan from PFC 07301015 (Unit-II) 2,940.00 2,940.00
Loan from PFC 07301022 (Unit-II) 2,284.44 2,284.44
Interest accured but not due on borrowings 674.86 601.69
Total 23,509.98 30,259.42
ParticularsTermAmount
OutstandingInstallment
Amt.
Loan from PFC (Unit-I) * 1,525.00 2 Quartely 7.625 crore
Loan from PFC 07301015 (Unit-II) ** 16,170.00 22 Quartely 7.350 crore
Loan from PFC 07301022 (Unit-II) ** 12,564.00 22 Quartely 5.710 crore
* Secured by Government Guarantee and Default Escrow.
** These loans were secured by creation of charge by erstwhile owner of assets of unit II of GLPL before they were transferred to GLPL. The satisfaction of that charge and creation of new charge by current owner i.e GLPL is pending. However, the lender PFC has agreed in principle for transfer of the loan to GLPL. only execution of tri parte agreement is to be executed.
(Amount in Lakhs)
NOTE No. 12-: Other Non-Current financial liabilities
NOTE No. 13-: Current Financial Liabilities : Trade Payables
Particulars
Particulars
Accounting Code
Account Code
As at31 Mar, 2019
Security Deposits 46.102 0.19 -
Total 0.19 -
a) Total outstanding dues of micro and small enterprises - -
b) Total outstanding dues of creditors other than micro and small enterprises
Liability for Supply of Material 42.110 2,222.12 2,125.59
Suppliers Control A/c 42.200 1,072.54 1,128.63
Liability for Works 42.300 24.82 19.48
Provision for Liability for Works 42.600 - -
Total (b) 3,319.48 3,273.70
Total (a+b) 3,319.48 3,273.70
(Amount in Lakhs)
(Amount in Lakhs)
As at31 Mar, 2018
As at31 Mar, 2018
As at31 Mar, 2019
As at31 Mar, 2018
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
354
NOTE No. 14-: Other Current Financial Liabilities
ParticularsAccount
CodeAs at
31 Mar, 2019As at
31 Mar, 2018
a) Current Maturities of Long Term Debts (C/f Note No. 11) 7,424.30 8,876.13
b) Others
Liabilities Employees 44.xxx 47.18 38.85
Security Deposit 46.102 111.39 187.56
E.M.D. 46.103 28.48 27.74
Retention Money 46.104 2,057.09 2,057.09
Provision for Guarantee Commission 46.710 0.32 2.54
Provision for Liability for Expenses 46.430 84.04 28.73
Remittance in Transit 46.905 25.87 1.45
Stale Cheques 46.910 11.76 11.76
M.D.- C.P.F 46.921 17.24 17.27
M.D.- Others 46.968 3,258.02 3,282.30
Payable to RVUNL 46.980 & 28.940 1,50,746.52 1,20,276.99
Amount Payable to JVVNL 46.982 - 16.73
Amount Payable to AVVNL 46.983 - 12.05
Amount Payable to JdVVNL 46.984 1,975.47 27.11
Total 1,65,787.67 1,34,864.31
NOTE No. 15-: Other Current Liabilities
ParticularsAccount
CodeAs at
31 Mar, 2019As at
31 Mar, 2018
IGST Payable 46.250 - 0.75
Sales Tax 46.330 2.11 2.86
Other Levies Payable 46.390 0.07 0.07
TDS CGST 46.262 0.11 -
TDS SGST 46.263 0.11 -
TDS Income Tax 46.924 4.13 4.18
Total 6.54 7.87
NOTE No. 16-: Current Liabilities : Provisions
ParticularsAccount
CodeAs at
31 Mar, 2019As at
31 Mar, 2018
a) Provision for employee benefits
Provision for Gratuity Fund 44.110 0.77 0.60
Provision for Super Annuation Fund 44.120 0.23 0.21
Provision for Exgratia 44.140 2.80 2.85
Total 3.80 3.65
(Amount in Lakhs)
(Amount in Lakhs)
(Amount in Lakhs)
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
355
NOTE No. 17-: Revenue from Operations
NOTE No. 18-: Other Revenue
NOTE No. 19-: Cost of Materials Consumed & Other Direct Expenses
Particulars
Particulars
Particulars
Account Code
Account Code
Account Code
For The Year Ended31 March, 2019
For The Year Ended31 March, 2019
For The Year Ended31 March, 2019
Revenue From Sale of Power* 61.410 (4,902.00) -
Total (4,902.00) -
* During the current year truing up orders for the year 2011-12 to 2016-17 (unit-I) and for the year 2015-16 to 2016-17 (Unit-II) were issued by the RERC on dated 04.04.2018 and 28.05.2018. Accordingly revenue of Rs. 4,902.00 lacs (PY Rs. Nil) has been reversed back to discom.
Sale Of Scrap 62.340 10.00 1.42
Quarter Rent 62.901 2.40 3.18
Income From Erector Hostel 62.908 - 0.32
Sale of Tender Form 62.917 0.17 0.06
Others Misc. Receipts 62.950 1.28 231.98
Total 13.85 236.96
a) Fuel Consumption
Cost of Coal Consumable 71.110 - 11.82
Cost of Oil Consumed 71.120 2.21 1.17
b) Operating Cost
Lubricant & Consumable 71.600 0.33 (3.62)
Other Direct Expenses* 71.800 2,045.86 65.01
Total 2,048.41 74.38
* Includes Rs.1,992.58 lacs (P.Y. Rs. Nil) payable to JdVVNL against energy bills for water supply from Mohangarh to Giral pertaining to financial year 2007-08 to 2016-17 for four pumping stations of GLTPP as decided by the Principal Secretary, Energy (GoR) and approved by the management in the meeting held on 02.04.2019.
NOTES TO STATEMENT OF PROFIT AND LOSS
For The Year Ended31 March, 2018
For The Year Ended31 March, 2018
For The Year Ended31 March, 2018
NOTE No. 20-: Repair & Maintenance
ParticularsAccount
CodeFor The Year Ended
31 March, 2019
a) Plant & Machinery 74.xxx 124.15 0.77
b) Buildings 74.xxx 0.04 -
c) Other Civil Works 74.xxx 48.62 31.93
d) Vehicles 74.xxx 1.89 0.65
Total 174.70 33.34
For The Year Ended31 March, 2018
(Amount in Lakhs)
(Amount in Lakhs)
(Amount in Lakhs)
(Amount in Lakhs)
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
356
NOTE No. 21-: Employee Benefit Expense
ParticularsAccount
CodeFor The Year Ended
31 March, 2019
a) Salary and wages
Basic Pay 75.1xx 451.47 188.88
Dearness Allowance 75.3xx 38.05 150.68
Other Allownaces 75.4xx 9.17 6.87
b) Contribution to
Terminal Benefits 75.8xx 32.66 22.13
c) Staff welfare Expense
Other Staff Related Expenses 75.6xx 43.06 51.35
Medical Exp. Incurred Disp. at Proj. 75.7xx 0.42 0.43
Total 574.83 420.34
For The Year Ended31 March, 2018
NOTE No. 22-: Finance Cost
ParticularsAccount
CodeFor The Year Ended
31 March, 2019
a) Interest on loans from Banks
Interest on Loan From OBC 78.527 - -
Interest on Loan From Canara Bank 78.529 - -
b) Interest on loans from others
Interest on Loan From PFC 78.517 3,792.53 4,226.76
c) Other borrowing costs
Other Finance Charges 78.830 11,267.14 10,013.59
Bank charges 78.883 0.04 0.04
Guarantee charges 78.884 922.19 825.12
Lease Rentals 78.891 - (1.75)
Unwinding of discount on vendor 74.150 0.01 - liabilities
Total 15,981.91 15,063.76
For The Year Ended31 March, 2018
(Amount in Lakhs)
(Amount in Lakhs)
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
357
NOTE No. 23-: Administrative & Other Expenses
ParticularsAccount
CodeFor The Year Ended
31 March, 2019
Rates & Taxes 76.102 - 1.15
Licence & Registration 76.103 1.07 0.60
Insurance on Fixed Assets 76.104 & 76.107 79.89 178.34
Secretarial Services 76.108 225.52 165.76
Insurance of Vehicle(LV) 76.109 0.13 0.12
Telephone Expenses 76.111 0.59 0.86
Legal Exp. 76.121 0.01 -
Payment to Auditors
a) Audit Fees 76.122 1.02 1.35
Consultancy Charges 76.123 2.97 1.01
Other Professional Charges 76.125 - 2.39
Tariff Fees 76.126 1.63 12.50
Travelling Expenses-Other Than Actual Fare 76.133 33.48 22.54
Vehicle Running Expenses 76.136 2.05 6.89
Vehicle Hiring Charges(HV) 76.137 33.57 42.25
Fee & Subscription 76.151 5.47 6.08
Printing & Stationary 76.153 0.39 0.43
Hot & cold charges 76.156 0.01 -
Electricity Charges 76.158 9.61 6.04
Water Charges 76.160 9.04 8.69
Orderly Expenses 76.162 1.03 0.26
Hiring of Manpower 76.181 10.77 17.38
Loss By Fire 23.81 -
Misc. Expenses 76.1XX 4.00 11.70
Total 446.05 486.36
For The Year Ended31 March, 2018
NOTE No. 24-: Movement in Regulatory Deferral Account Balances
ParticularsAccount
CodeFor The Year Ended
31 March, 2019
Rate Regulatory Income 62.970 - -
Amortization of regulatory deferral asset 77.240 (545.34) (545.34)
Net movement in regulatory deferral (545.34) (545.34)account balances
For The Year Ended31 March, 2018
(Amount in Lakhs)
(Amount in Lakhs)
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
358
NOTE No. 25-: Earning Per Share
Particulars UnitFor The Year Ended
31 March, 2019
Net Profit/(Loss) after tax as per Statement of Profit and Loss attributable to Equity Shareholders including movement in regulatory deferral account balances (a) ` (32,413.22) (24,145.02)
Net Profit/(Loss) after tax as per Statement of Profit and Loss attributable to Equity Shareholders excluding movement in regulatory deferral account balances (b) ` (31,867.88) (23,599.68)
Weighted Average number of equity shares used as denominator for calculating EPS (c) No. 3,700.50 3,700.50
Earning Per Share including Movement in regulatory deferral account balances (Amounts in Rs.) ` (8.76) (6.52)
Earning Per Share excluding Movement in regulatory deferral account balances (Amounts in Rs.) ` (8.61) (6.38)
Face Value per equity share (Amounts in Rs.) ` 10 10
For The Year Ended31 March, 2018
(Amount in Lakhs)
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
359
Other Notes to Accounts
1 Disclosure as per Ind AS 37 Provisions, contingent Liabilities & contingent Assets
Contingent Liabilities
During the F.Y. 2008-09, the company had received a demand notice of 25.27 lacs/- for the A.Y. 2008-09 from Income Tax Officer (TDS)-2, Jodhpur. The company has gone into further appeal before Commissioner of Income Tax (Appeals) (CIT-A) as well as ITAT, Jodhpur against the said order and the CIT-A as well as ITAT has decided the case against the company and company has deposited ` 25.27 lacs/- against such demand. The company has further gone into appeal before Hon’ble High Court of Rajasthan, Jodhpur. The company has not booked the said amount of ̀ 25.27 lacs/- as expenditure till the end of the reporting period and the same is standing as Short Term Loans and advances to Others.
2 a) In respect of Inter Company transactions with other successor Companies of erstwhile RSEB, no interest/surcharge has been charged/paid by the Company during the year. However, due to centralized fund procurement system by the holding company for all its subsidiary companies GLPL has made payment of interest of ` 1,12,67,13,810/- and guarantee commission of ` 9,20,60,974/- to RRVUNL over loan taken by RRVUNL on behalf of the company during the current F.Y.
b) The Inter Company Transaction up to 31.03.2019 have been reconciled.
3 Provision for liability for expenses/creation of prepaid expenses is generally not made for small/petty amounts.
4 The GLPL Unit-I, commissioned on 28.02.2007, since then it was running on Trial-run upto declaration of COD i.e. 18.10.2011. The units generated during this period have been charged to Discoms as Infirm Power rate.
In case of F.Y. 2018-19, the Rajasthan Electricity Regulatory Commission, Jaipur has passed an order dated 24.04.2018 in which they have revised and allowed the new provisional tariff which is ` 1.873 as fixed charges and ̀ 1.366 as variable charges for Unit-I&II. The company has recognized the revenue on the basis of new provisional tariff for the period under audit, since the rates are not finalized, However no revenue recognozed during the current F.Y.
5 Lenders for GLPL i.e. PFC is agreed in principle for transfer of their loan to GLPL. However tripartite agreement is in the process of execution, till such time, it is agreed between RVUN and GLPL that RVUN shall meet out the financial/contractual commitments (including debt servicing) regarding loans already availed from the financial institutions. Expenditure incurred by RRVUNL in this regard shall be reimbursed by GLPL.
6 The balances of all third Parties are subject to confirmation and reconciliation from such parties.
7 The Provision for Bonus/Ex-gratia has been created on the basis of present strength of officers/ Employees.
8 Disclosure as required by Indian Accounting Standard 24 “Related Party Disclosures” :
A Names of the related party and description of relationship:
Related Party Where Control Exists Relationship
Rajasthan Rajya Vidyut Utpadan Nigam Limited Holding Company
Name Period DIN/PAN
Sh. P. Ramesh, IAS 30.11.2018 to 31.03.2019 DIN-03551794
Sh. N. K. Kothari 01.04.2018 to 30.11.2018 DIN-07649438
Sh. Rakesh Verma 01.04.2018 to 17.09.2018 DIN-07400105
Sh. Gopal Jasoria 01.04.2018 to 18.07.2018 DIN-07686384
Sh. M. L. Gupta 01.04.2018 to 27.03.2019 DIN-07580613
Sh. S.S. Meena 01.04.2018 to 31.03.2019 DIN-03319346
Sh. P.S. Arya 01.04.2018 to 31.03.2019 DIN-07646220
Sh. R P Singh 01.10.2018 to 31.03.2019 DIN-08242719
Smt. Pushpa Upadhyay 01.04.2018 to 31.03.2019 DIN-07259148
Sh. Hitesh Sharma 01.04.2018 to 31.03.2019 BSNPS3045P
Sh. Surendra Kumar Sethi 01.04.2018 to 31.03.2019 ABIPS1460K
Rajasthan Rajya Vidyut Karamchari Trust Post Employment Benefit Plans
`
Key Mangerial Person
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
360
B Transactions with Related Parties
Particulars 2018-19 2017-18
Holding Company
Settlement of Liability by holding company 31,096.52 28,731
Business Combination - -
Material received - -
Fund received from Holding 96.80 1,547.00
Repayment of loan 35.80 476.09
Material Sent to Holding Company 4.81 4.69
Transfer to Holding Company (Spares) - 5.16
Income Received by RRVUNL - 1,125.74
Transfer under finance arrangement - -
KMP
Short term employee benefits 19.67 15.96
Post-employee Benefits 3.11 1.58
Other long term benefits 1.47 0.63
Termination benefits - -
Share based payments - -
Transactions with post employment benefit plans
Rajasthan Rajya Vidyut Karamchari Gratuity Trust 8.42 5.72
Rajasthan Rajya Vidyut Karamchari Superannuation Trust 1.42 1.10
Transaction with the related parties under the control 2018-19 2017-18
of the same government
Sale of Power
JVVNL 83.66 20.37
AVVNL 29.24 14.26
JDVVNL (1,949.61) 30.45
Purchase of Coal
RSMM - -
C Outstanding Balances with related parties
Particulars As at As at
31-Mar-2019 31-Mar-2018
Holding Company
RRVUNL 1,50,746.52 1,20,276.99
Transaction with the related parties under the control
of the same government
JVVNL 66.92 16.73
AVVNL 17.19 12.05
JDVVNL 1,974.90 25.87
RSMM 898.51 898.51
(Amount in Lakhs)
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
361
Post employment benefit plans
Rajasthan Rajya Vidyut Karamchari Trusts - -
9 Disclosure as per Indian Accountng Standards 107 , Finnacial Instruments - Disclosure
A Financial Insturments by category
Particulars As at 31-Mar-2019
FVTPL FVTOCI Amortised Cost
Financial Assets
Trade Receivable - - 84.11
Cash and cash equivalents - - 38.17
Others financial assets - - 31.01
Total Financial Assets - - 153.29
Particulars As at 31-Mar-2019
FVTPL Amortised Cost
Financial Liabilities
Borrowings - 23,509.98
Trade payables - 3,319.48
Other financial liabilities - 1,65,787.67
Total Financial Liability - 1,92,617.13
Particulars As at 31-Mar-2018
FVTPL FVTOCI Amortised Cost
Financial Assets
Trade Receivable - - 1.25
Cash and cash equivalents - - 7.65
Others financial assets - - 127.41
Total Financial Assets - - 136.31
Particulars As at 31-Mar-2018
FVTPL Amortised Cost
Financial Liabilities
Borrowings - 30,259.42
Trade payables - 3,273.70
Other financial liabilities - 1,34,864.31
Total Financial Liability - 1,68,397.43
B Financial Risk Management:
The Company's Financial Risk Management is an integral part of how to plan and execute its business strategies. The Company's financial risk management is set by the Managing Board. The Company's prinicipal financial liabilities comprise loans and borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the company's operations. The company's principal financial assets include trade & other receivables and cash and short term deposits.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. In order to optimize the Company's position with regards to
(Amount in Lakhs)
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
362
interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
Credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account financial conditions, current economic trends and analysis of historical bad debts and ageing of accounts receivable. Individual risks are set accordingly.
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company categorises a loan or receivable for write off when a debtor fails to make contractual payments greater than 2 years past due. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or loss.
Liquidity Risk
Liquidity risk is defined as the risk that the Company will not be able to settle of meet its obligations on time or at a reasonable price. The Company's treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management moniters the Company's net liquidity position through rolling forecasts on the basis of expected cash flows.
Risk Exposure arising Measurement Management
31-Mar-19
Contracutal maturities of Contractual cash flows
financial liabilities
Below 3 3-12 1-2 Years 2-5 Years Above Total
Months Months 5 years
Term Loans form banks - - - - - -
Term loans form others 2,068.61 4,680.83 5,224.44 15,673.32 2,612.22 30,259.42
Trade and other Payables 8,291.71 1,54,066.00 - - - 1,62,357.71
31-Mar-18
Contracutal maturities of Contractual cash flows
financial liabilities
Below 3 3-12 1-2 Years 2-5 Years Above Total
Months Months 5 years
Term Loans form banks - - - - - -
Term loans form others 2,068.61 6,205.83 6,749.44 15,673.32 7,836.66 38,533.86
Trade and other Payables 6,312.88 1,23,550.69 - - - 1,29,863.57
(Amount in Lakhs)
(Amount in Lakhs)
Credit Risk Trade Receivable, other financial assets
Liquidity Risk Borrowings and other liabilities Rolling cash flow Availability of credit linesforecast and fund received from
RRVUNL
Market Risk- Variable interest rate borrowings Sensitivity Analysis Different kinds of loanInterest Rate arrangements
The following are the contractual maturities of financial liabilities based on contractual cash flows
Ageing analysis Credit limits
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
363
C. Capital Management
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The primary objective of the Company’s capital management is to maximize the shareholder value. The Company endeavours to maintain sufficient and appropriate capital structure and capital ratio and ensuring entity being going concern by optimally managing their capital and having a beneficial cost of capital for maximum value generation.
(Amount In Lacs)
Particulars As on 31-03-2019 As on 31-03-2018
Gross Debt 30,934.28 39,135.55
Cash and Marketable Securities 38.17 7.65
Net Debt 30,896.11 39,127.90
Total Equity (89,472.02) (57,058.80)
Capital Gearing Ratio (0.35) (0.69)
D. Details of defaults during the period of principal and interest
No such defaults of Principal and Interest were made during the period ending as on 31.03.2019
No such defaults of Principal and Interest were made during the period ending as on 31.03.2018
10. Disclosure as per Ind AS 113 "Fair Value Measurement"
Fair value of Financial assets and liabilities measured at amortised cost
Particulars As at 31-Mar-2019 As at 31 Mar- 2018
Carrying Fair Carrying Fair
Amt. Value Amt. Value
Financial Liabilities
Borrowings 23,509.98 30,259.42 30,259.42 30,259.42
Other financial liabilities 1,65,787.67 1,34,864.31 1,34,864.31 1,34,864.31
Total 1,89,297.66 1,65,123.73 1,65,123.73 1,65,123.73
The carrying amount of short term trade receivables, trade payable, cash and cash equivalents and
other financial assets and liabilities are considered to be the same as their fair value, due to their short
term nature.
11. Disclosure as per Ind AS 108 ' Operating Segment'
Revenue from single external customers amounting to 10 % or more is disclosed below:
Particulars 2018-19 2017-18
JVVNL - -
AVVNL - -
JDVVNL - -
(Amount in Lakhs)
(Amount in Lakhs)
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
364
12 Disclosure as per Ind AS 114 "Regulatory Deferral Accounts"
(i) Nature of rate regulated activities
The Company is mainly engaged in generation and sale of electricity. The price is to be charged by the Company for electricity sold to its customers is determined by RERC which provides extensive guidance on the principles and methodologies for determination of tariff for the purpose of sale of electricity.
This form of rate regulation is known as cost-of-service regulation which provides the company to recover its costs of providing the goods or services plus a fair return.
The company is eligible to apply Ind AS 114, Regulatory Deferrral Account. The standard permits an eligible entity to continue previous GAAP (Guidance Note on Accouting of Rate Regulated Activities) accounting policy for its regulatory deferral account balances. Hence, Company has opted to continue with its previous GAAP accounting policy for such balances.
(ii) Recognition and Measurement
RERC has sanctioned through vide order no. Petition No. RERC/483/14 dated 12.08.15 and Petition No. RERC/481/14 dated 12.08.15 an additional capital cost for Unit-I amounting to Rs. 3,017.55/- lacs and for Unit-II 10,616.00/- lacs. The additional cost has been shown as regulatory assets in the books of accounts for both the units in accordance with the “Guaidance Note on Accounting of Rate Regulated Activities”.The company has recognized Regulatory Income in the statement of Profit & Loss account Rs. 2,433.52/- lacs for Unit I and in case of unit II the same has been recognized as liability of RVUNL being expenditure incurred by the RVUNL in earlier years and not transferred to the company. Hence, Regulatory Assets in the Balance sheet has been recognized amounting to Rs. 10,951.20/- lacs (net of Amortization upto march 2016).
GLPL has recognized as current liabilities in balance sheet payable to RVUNL Rs. 11,200.02/- lacs for the part of regulatory assets recognized for Unit-I Rs. 584.02/- lacs (on proportionate basis) & Unit II Rs.10,616.00/- lacs booked. As per RERC norms GLPL has assumed useful life of assets 25 years for amortizing regulatory assets over the period.
Further GLPL has claimed amortization amount to Rs. 1,720.66/- lacs from RVUNL which is accumulated amortized value on behalf of Unit-II for the period from 2010-11 to 2014-15. GLPL has booked as an expense in current year amortized value on regulatory assets in the head 77.240 Amortization on regulatory assets and has been reduced from the gross value of regulatory assets amounting to Rs. 537.04/- lacs for Unit-I and Rs. 2,145.30 lacs (i.e. Rs. 1,720.66/- lacs from 2011-12 to 2014-15 & Rs. 424.64/- lacs for the year 2015-16) for Unit-II.
(iii) Risk associated with future recovery / reversal of regulatory deferral account balances
(a) Regulatory risk on account of submission or approval of a rate setting application or the entity's assessment of the expected future regulatory actions.
(b) Other risks including market risks, if any.
(iv) Reconciliation of carrying amounts
The regulated assets/liabilities recognised in books to be recovered from or payable to the beneficiaries in future periods are as follows:
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
365
Regulatory deferral account - debit balance (Note No. 9)
Particulars 31-Mar-19 31-Mar-18
Opening Balances 9,860.52 10,405.87
Addition during the year - -
a) Transfer from RVUNL - -
b) Recognition for Rate Regulated Income during the year - -
Ammortisation during the year (545.34) (545.34)
Closing Balancs 9,315.18 9,860.52
v. Total amount recognised in the Statement of Profit and Loss - -
The Company expects to recover the carrying amount of deferral account balances over a period of 25 years.
13. Details of deductible temporary difference, unused tax credit and unused tax losses
Particulars As on 31.03.2019 As on 31.03.2018
Amount Expiry Date Amount Expiry Date
Tax Losses
Brought forward business lossses
other than speculative losses
A.Y. 2012-13 2,559.25 31-Mar-21 2,559.25 31-Mar-21
A.Y. 2013-14 11,136.54 31-Mar-22 11,136.54 31-Mar-22
A.Y. 2014-15 - -
A.Y. 2015-16 517.58 31-Mar-24 517.58 31-Mar-24
A.Y. 2016-17 5,101.01 31-Mar-25 5,101.01 31-Mar-25
A.Y. 2017-18 15,937.08 31-Mar-26 15,937.08
A.Y. 2018-19 16,386.14 31-Mar-27
Unabsorbed Depreciation
A.Y. 2014-15 3,572.94 3,572.94
A.Y. 2015-16 7,248.11 7,248.11
A.Y. 2016-17 14,952.87 14,952.87
A.Y. 2017-18 12,723.61 12,723.61
A.Y. 2018-19 10,867.20 -
14 Disclosure as per Ind AS 103 "Business Combination"
A The Board of Directors of RRVUNL in its 149th and 150th meeting held on 8th October, 2008 and 7th November, 2008, respectively accorded approval to transfer the business of its 1x125 MW Unit-1 (Stage-I) of Giral Lignite Thermal Power Project situated at Giral in District of Barmer, Rajasthan to Giral Lignite Power Limited (GLPL), a wholly owned subsidiary of the Company on a 'going concern basis' along with all its assets & liabilities on book value, at such consideration, being not lower than the net book value, to be issued in the form of equity shares in the said subsidiary company (GLPL) to RRVUN, with effect from 1st January, 2009 (to be considered as effective date of transfer). Accordingly all the assets & liabilities of GLTPP has been transferred to GLPL w.e.f 1st January, 2009 after finalization of audited accounts of RRVUNL for the financial year 2008-09, the consideration for the
(Amount in Lakhs)
(Amount in Lakhs)
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
366
above transfer should have been received in the form of equity shares in GLPL for the amount of "Net Book Value of Assets transferred" and other transactions shall be treated as Debtors/Creditors as the case may be. The company has passed a resolution in its 37th meeting of Board of Directors held at Vidhyut Bhawan, Jaipur on dated 15th Jan. 2015 and considered allotment of 18,50,00,000 equity shares of Rs.10/- each aggregating to Rs.185,00,00,000/- to its holding company Rajasthan Rajya Vidhyut Utpadan Nigam Limited. Accordingly the current liabilities has been reduced by Rs.185 Crores which was payable to RVUNL (H.Q.).
B The Board of Directors of RRVUNL in its 241st meeting held on dated 20 October, 2014 accorded approval to transfer the business of its Unit-2 (125 MW) Stage-II of Giral Lignite Thermal Power Project situated at Giral in District Barmer, Rajasthan to Giral Lignite Power Limited (GLPL), a wholly owned subsidiary of the company on a “going concern basis” along with all its assets and liabilities on book value. The consideration, for the above transfer was approved in the form of equity shares in the said subsidiary company (GLPL) to RRVUNL, with effect from 01st April, 2015 (to be considered as effective date of transfer). Accordingly all the assets & liabilities of GLTPP have been transferred to GLPL w.e.f 1st April, 2015 after finalization of audited accounts of RRVUNL for the financial year 2014-15 (First half). The consideration for the above transfer should have been received in the form of equity shares from GLPL for the amount of "Net Book Value of Assets transferred" and other transactions shall be treated as Debtors/Creditors as the case may be. The company has passed a resolution in its 40th meeting of Board of Directors held at Vidhyut Bhawan, Jaipur on dated 31st July 2015 and considered allotment of 18,50,00,000 equity shares of Rs.10/- each aggregating to Rs.185,00,00,000/- to its holding company Rajasthan Rajya Vidhyut Utpadan Nigam Limited. Accordingly the current liabilities has been reduced by Rs.185 Crores which was payable to RVUNL (H.Q.).
Disclosure as per Ind AS 115 "Revenue from Contracts with Customers"
There is no revenue during current as well as previous year. Further, during the current year truing up orders for the year 2011-12 to 2016-17 (unit-I) and for the year 2015-16 to 2016-17 (Unit-II) were issued by the RERC on dated 04.04.2018 and 28.05.2018. Accordingly revenue of Rs.4902.00 lacs
(PY Rs. Nil) has been reversed back to discom. "
15. Information in respect of micro and small enterprises as at 31 March 201 as required by Micro, Small and Medium Entereprises Development Act, 2006
Particulars 31-Mar-19 31-Mar-18
a) Amount remaining unpaid to any supplier:
Principal Amount - -
Interest due thereon - -
b) amount of interest paid in terms of Section 16 of MSMED Act along with the amount paid to the suppliers beyond the appointed day - -
c) Amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the MSMED Act. - -
d) Amount of interest accrued and remaining unpaid - -
e) Amount of futher interest remaining due and payable even in the succeeding years, until such date when the interest due as above are actually paid to the small entereprises, for the purpose of disallowances as a deductible expenditure under Section 23 of MSMED Act - -
16. Licensed & installed capacities
Particulars 2018-19 2017-18
Licensed Capacity (MW) 250MW 250MW
Installed Capacity (MW) 250MW 250MW
st9
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
367
17. Quantitative information in respect of Generation and Sale of Electricity:
Particulars For the year ended 31-Mar-2019 For the year ended 31-Mar-2018
Units Aux. Net Units Units Aux. Net Units
Generated Consumption Sold (MU) Generated Consumption Sold (MU)
(MU) (MU) (MU) (MU)
Commercial Period - 3.215 - - 3.215 -
Pre-Commercial Period - - - - - -
Grand Total - 3.215 - - 3.215 -
18. No earning in foreign exchange was accrued during the year.
ANNUAL REPORT 2018-19 GIRAL LIGNITE POWER LIMITED
368
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA
UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF GIRAL LIGNITE POWER LIMITED FOR THE
stYEAR ENDED 31 MARCH 2019.
The preparation of financial statements of Giral Lignite Power Limited for the year ended 31
March 2019 in accordance with the financial reporting framework prescribed under the
Companies Act, 2013 (Act) is the responsibility of the management of the company. The statutory
auditors appointed by the Comptroller and Auditor General of India under Section 139(5) of the Act
are 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 section th143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 7 August
2019.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary staudit of the financial statements of Giral Lignite Power Limited for the year ended 31 March 2019
under section 143 (6)(a) of the Act. 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.
On the basis of my supplementary audit nothing significant has come to my knowledge which
would give rise to any comment upon or supplement to statutory auditors' report under section
143 (6)(b) of the Act.
st
For and on the behalf ofthe Comptroller and Auditor General of India
(Anadi Misra)Accountant General
(Economic & Revenue Sector Audit)Rajasthan, Jaipur
Place : Jaipur
Date : 17.09.2019