Directors' Report RVUNL · Unit-6 was declared on commercial operation (COD) on 2.04.2019. ii)...

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

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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

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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.

-- -- -- --

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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.

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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.

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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


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


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


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


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.

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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


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


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


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


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


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.


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


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


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


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


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


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.


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


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.


6.1 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.


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.



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.


24


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


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.


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

[email protected]

Kushawah Kundwani & Associates

Company Secretaries

Annexure-IV


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


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.)


28

ndE-295-296, Speakwel House, 2 Floor

LalKothi Scheme, Behind New VidhanSabha, Jaipur-15 Tel: +91- 0141-4030077 (M): 9828839917, 9828727509

[email protected]


Company Secretaries

“Annexure-A”

To

The Members,

Rajasthan Rajya Vidyut Utpadan Nigam Limited

CIN: U40102RJ2000SGC016484


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


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


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


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)


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


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


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


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 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


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


35

iv.Shareholding Pattern of top ten Shareholders(other than Directors, Promoters and Holders of GDRs and ADRs): NIL

Sl. No.



For each of the Top 10

Shareholders

No. of Shares

% of total shares of the

company

No. of Shares


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


Cumulative

Shareholding during the year

No. of Shares


company

No. of Shares


company


-

-

-

-


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 - - - -


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.


0.00

0.00

0.00

0.00

iii.


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


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


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

-

-

-


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 - - - - -



C. OTHER OFFICERS IN DEFAULT Penalty - - - - -



For Rajasthan Rajya Vidyut Utpadan Nigam Limited

(P. Ramesh)DIN-03551794

Chairman & MDVidyut Bhawan, Janpath, Jyoti Nagar,

Jaipur-302005

Place : JAIPURDate : 09.12.2019


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


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


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


9 6


10 8


10 9


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


3 3


3 3


3 3


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


42


43

Details of Meetings of Borrowings Committee held during the year 2018-19:


S. No. Number and date of Meeting Borrowings Committee’s Strength


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 3


3 3


3 3


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


3 3


Meetings attended

Shri N K Kothari 7 7 Shri P. Ramesh 3 3 Shri M L Gupta 10 10 Shri S SMeena 10 9


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


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


46

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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


50


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


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


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


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.


FRN : 001100C

(Venkatesan Chandra Mouli)

Partner Mem. No. : 010054

UDIN : 19010054AAAABL5329

Place:Jaipur

Date : September 12, 2019


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


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.


6.1 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.

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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.



FRN : 001100C




Place: Jaipur


Standalone


58Standalone


(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


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


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.



FRN : 001100C




Place: Jaipur



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



(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


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.


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.


FRN : 001100C




Place: Jaipur



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


agencies are properly recorded and

utilized as per the terms and conditions.

S.No. General Direction Remarks

1.

2.

3.

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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.



FRN : 001100C


Partner

Mem. No. : 010054

UDIN: 19010054AAAABL5329

Place : Jaipur



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 )`


67

Particulars

Current 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



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 )`



DIN : 03551794

( )Director

DIN : 03319346


FRN-001100C





M.No.: 010054



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 )`


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 )`


For the Year endedst31 March 2019




DIN : 03551794

( )Director

DIN : 03319346


FRN-001100C





M.No.: 010054



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





9,67,542.00


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


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



DIN : 03551794

( )Director

DIN : 03319346


FRN-001100C





M.No.: 010054



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;

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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

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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

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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”

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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.

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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.

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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

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80


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

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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.


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


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


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


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




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


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


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


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 at31.03.2019

As at31.03.2018


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 )`

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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.

` `

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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



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 )`

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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


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 )`

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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

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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


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 )`

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As at31.03.2019

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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


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 )`

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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 )`

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As at31.03.2019

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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


S.NO.

As at31.03.2019

As at31.03.2018


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


REC Loans 53.300 10,808.39 18,683.92

PFC Loans 53.550 92,510.76 94,842.76


1,43,625.26 1,54,415.77

GRAND TOTAL 24,65,651.54 21,64,067.05

`

( in Lakhs )`

Standalone


S.NO.

As at31.03.2019

As at31.03.2018


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


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


( in Lakhs )`

(v) : Descriptive details of Term Loan from others - Unsecured Borrowings

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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 )`

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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 )`

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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

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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


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 - -


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 )`

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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

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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

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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


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

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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 )


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.

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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


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


(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.

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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


Liability / (Assets) -957.04 -1,371.12


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 - -




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.

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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


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

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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

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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


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






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 )`






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 )`








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


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


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


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 Nominated Authority, Ministry of Coal, GoI


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


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


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


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.


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


123


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


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


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 )`


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






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


Name of Entity

Ownership Interest


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


( in Lakhs )`

Financial Assets:




Loan - - 353.08

Bank deposits with more than 12 months maturity - - -


Investments - - 18,510.00



Particulars

Financial Assets FVTOCI

31.03.2018


( in Lakhs )`


126

Bonds - 85,000.00

Term Loans - 34,32,389.87


Finance lease obligation 326.67


Other Loans and Advances - 96,000.00


Trade Payables - 86,859.16


Particulars

Financial Liability

31.03.2018


( 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


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


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


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





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


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:



( 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


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


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 :-


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 )`


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


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.


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.



DIN : 03551794

( )Director

DIN : 03319346


FRN-001100C





M.No.: 010054



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


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


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.



(I) Income


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.


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)


141


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.


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


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


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


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


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.


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


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.



FRN : 001100C



UDIN : 19010054AAAABM5823

Place : Jaipur



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


148

for adjustments and reconciliation. The Effect of the same on Financial Statements is not ascertainable.


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


149

“ANNEXURE I-A”

(BASIS OF QUALIFIED OPINION)



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


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.



FRN : 001100C




Place : Jaipur


Consolidated


151


(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)


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.


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





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.








or error.


for our audit opinion on the internal financial controls system over financial reporting of the

Company.



Consolidated


152








receipts and expenditures of the company are being made only in accordance with authorisations


prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s


Limitations of Internal Financial Controls Over Financial Reporting







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



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


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.



FRN : 001100C




Place : Jaipur


Consolidated


154

CIN-U40102RJ2000SGC016484

stConsolidated BALANCE SHEET AS AT 31 MARCH, 2019

ParticularsNoteNo.

As atst31 March, 2018*

As atst1 April2017*


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


(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

(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


(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 )`


155

Particulars

Total Non-Current Liabilities 40,41,555.69 35,59,903.06 33,33,400.14

Current 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



DIN : 03551794

( )Director

DIN : 03319346


FRN-001100C





M.No.: 010054


NoteNo.


As atst1 April2017



156

CIN - U40102RJ2000SGC016484

STATEMENT OF PROFIT AND LOSS FOR THE PERIOD ENDED stCONSOLIDATED 31 MARCH, 2019

ParticularsNoteNo.


2019


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


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 )`



DIN : 03551794

( )Director

DIN : 03319346


FRN-001100C





M.No.: 010054



157

CIN - U40102RJ2000SGC016484

ST STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 MARCH, 2019

ParticularsFor the Year ended

st31 March 2019



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 )`


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)


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 )`






DIN : 03551794

( )Director

DIN : 03319346


FRN-001100C





M.No.: 010054


STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED st31 MARCH, 2019


For the year 2018-19 ( in Lakhs )`

( in Lakhs )`

( in Lakhs )`


period

9,67,542.00



39,253.00



10,06,795.00

For the year 2017-18

9,35,882.00 31,660.00





9,67,542.00


period

B. Other Equity

CIN - U40102RJ2000SGC016484

Consolidated


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


159


160Consolidated

Particulars Total


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 )`



DIN : 03551794

( )Director

DIN : 03319346


FRN-001100C





M.No.: 010054



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


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.


The Group presents assets and liabilities in the balance sheet based on current/non-current

classification.












Consolidated


162


months after the reporting period. All other liabilities are classified as non-current.

Deferred tax assets/liabilities are classified as non-current.


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


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


f. Expenditure on major inspection and overhauls of production plant is capitalized,


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


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.


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


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.




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


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.


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


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


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


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.


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.


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


168

or payable to beneficiaries.


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.


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.


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.


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


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



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.


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


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


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


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


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


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 )`


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 )`





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


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


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 at31.03.2019

As at31.03.2018


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 )`


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 )`


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


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)


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


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


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


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


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


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


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


Addition to Fly Ash Fund during the year 6,749.80 8,779.22


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


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


9.00% Redeemable Bonds 2014-15 - -

8.74% Redeemable Bonds 2014-15 - -


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


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 -


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


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


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


( in Lakhs )`

Consolidated

As at31.03.2019

As at31.03.2018


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


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


REC Loans 10,808.39 18,683.92

PFC Loans 99,260.20 1,03,117.20


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


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


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


( 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


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


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


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


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


TOTAL 46,880.26 34,177.30

24.1 The provision for ex-gratia has been created on ad-hoc Basis


Add: Current Year Transfer 496.00 -

Less: Transferred to Statement of Profit and Loss - -


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


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.


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








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








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 - -


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






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:


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 )


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


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


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


(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 )`


200

E.Other Disclosures

Pension 2018-19 2017-18

stPresent value of obligation as on 31 March 1,01,782.66 89,159.98





Gratuity 2018-19 2017-18

stPresent value of obligation as on 31 March 18,841.96 17,562.88


Liability / (Assets) -957.04 -1,371.12


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 - -




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 )`


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


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


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



( in Lakhs )`


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






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


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






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 )`






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







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:


Chabbra Power Limited

Dholpur Gas Power Limited


Joint Venture Companies

Parsa Kente Colliaries Limited

Rajasthan Colliaries Limited

( in Lakhs )`


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


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


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


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


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


M/s SRCPL

M/s SECL

Under Secretary, MoC, GoI


13 SBI, Exhibition Road,

Patna Branch, Bihar


FA&CAO,East central Railway, Hazipur, Bihar

Bank of India, Jaipur10

8

9

SBI, Collectrate Branch


11 Bank of India, Jaipur Nominated Authority, Ministry of Coal, GoI

12 SBI, Exhibition Road,

Patna Branch, Bihar


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


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


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


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


14

( in Lakhs )`


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


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


As at31.03.2018

( in Lakhs )`


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


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


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


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


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


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


213Consolidated


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 )`


214

36.10 Disclosure as per Indian Accounting Standards 107, Financial Instruments - Disclosure

A Financial Instruments by category

Trade Receivables - - 18,41,039.59



Loan - - 350.44

Bank deposits with more than 12 months maturity - - 154.48





Particulars

FVTOCI

31.03.2019


( in Lakhs )`

Consolidated

Bonds - 85,000.00

Term Loans - 39,43,695.84


Retention Money - -

Liability -Land lease rental - 326.66


Other Loans and Advances 21,563.59


Trade Payables - 2,23,462.23


Particulars

Financial Liability

31.03.2019


( in Lakhs )`




Loan - - 353.08

Bank deposits with more than 12 months maturity - - -



Other Financial Assets - - 59,036.66


Particulars

Financial Assets FVTOCI

31.03.2018


( in Lakhs )`

Financial Assets:


215

Bonds - 85,000.00

Term Loans - 34,62,649.29


Retention Money - -

Liability -Land lease rental - 326.67


Other Loans and Advance - 96,000.00


Trade Payables - 90,132.86


Particulars

Financial Liability

31.03.2018


( 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


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


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


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





more than 5Years

Total

( in Lakhs )` 31.03.2019


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





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


218


Financial Assets:



( in Lakhs )`


Financial Assets:



( 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


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


220Consolidated


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 :-


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


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 )`


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:


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:


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


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-


• 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


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




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.


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


profit or lossAmount


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 )`



DIN : 03551794

( )Director

DIN : 03319346


FRN-001100C





M.No.: 010054


36.28 Figures of the current & previous year have been rounded off to nearest Lakhs.


226


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:



(I) Income


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


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.


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


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.



(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


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


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.



DIN : 03551794

( )Director

DIN : 03319346


FRN-001100C





M.No.: 010054



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


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


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


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




17. Directors’ Responsibility Statement


knowledge and belief confirm that:




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;


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;




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


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


239

Annexure-I

CHHABRA POWER LIMITED

FORM NO. MGT-9






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


7. Name Address and Contact Not Applicable Details of Registrar and Transfer Agent, if any





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


240

4. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)i Category-wise Share Holding

CATEGORY OF


during

the year


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




241

Investors

(i) Others - - - - - - - - -

Sub-Total B(1) : - - - - - - - - -

(2) NON-INSTITUTIONS


(b)Individuals - - - - - - - - -



(c) Others - - - - - - - -

CLEARING - - - - - - - - -MEMBERS

NON RESIDENT - - - - - - - - -INDIANS


Sub-Total B(2) : - - - - - - - - -


Total B=B(1)+B(2) - - - - - - - - -

Total (A+B) : NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL


GRAND TOTAL (A+B+C) : NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL

Sr. No

Shareholder’s Name



No. of shares

% of total Shares of the Company

%of Shares Pledged / encumbered to total shares

No. of shares



% change in share holding during

the year


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


242


243


1.

Government of Rajasthan






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



Shareholders

No. of Shares


company

No. of Shares


company



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)


244


Sl. No.

Shareholding of each and each Key Managerial

Personnel

director



No. of Shares

% of total shares of the company

No. of Shares


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 /


- - - -


5.INDEBTEDNESSIndebtedness of the Company including interest outstanding/accrued but not due for payment


Unsecured Loans

Deposits Total Indebtedness


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 -- -- -- --


i. Principal Amount

NIL NIL NIL NIL


-- -- -- --


-- -- -- --

Total (i+ii+iii) NIL NIL NIL NIL


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 -- --


-- -- -- --


-- -- -- --

(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)

--

--

--

--


--

(B) Remuneration to Other Directors: NIL

Sr. No


1. Independent Directors

(a) Fees for attending board committee meetings

- - - -

(b) Commission - - - -

(c) Other, please specify - - - -

Total (1) - - - -

2. Other Non Executive Directors


- - - -



Total (2) - - - -

Total (B) = (1+2) - - - -

Total Managerial Remuneration - - - -

Overall Ceiling as per the Act - - - -


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


NIL NIL


NIL NIL


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


Act

Brief Descriptio

n














For Chhabra Power Limited

P. RameshChairman

DIN-03551794

Place : JAIPURDate : 29-08-2019


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.


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


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.


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


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


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.


Firm’s Registration No.000239C

Anirudh Singh

(Partner)

M. No.: 418686

Place: Jaipur

Date: 10.07.2019


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.


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.


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





or error.


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





252

For P.C. Modi & Co.


FRN: 000239C

Anirudh Singh

(Partner)

M. No.: 418686

Place: Jaipur

Date: 10.07.2019


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


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.


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


transactions through IT System? If Yes,

the implication of processing of


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.


FRN: 000239C

Anirudh Singh

(Partner)

M. No.: 418686

Place: Jaipur

Date: 10.07.2019


254

CIN-U40109RJ2006SGC023353

stBALANCE SHEET AS AT 31 MARCH, 2019

ParticularsS.

No.Notes



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


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


255

CIN-U40109RJ2006SGC023353

Statement Of Profit and Loss for the year ended 31 March 201 st9


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





(P. RAMESH)Chairman

DIN:03551794


DIN: 03319346


256

CIN-U40109RJ2006SGC023353

STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31 MARCH 201st9

ParticularsAs at

st31 March, 2019

(Amount in `)


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





(P. RAMESH)Chairman

DIN:03551794


DIN: 03319346


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258

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259


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



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.





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




a. It is expected to be settled in normal operating cycle;

b. It is held primarily for the purpose of trading;


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



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


Diluted earnings per equity share is computed by dividing the net profit or loss attributable to


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 :



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.


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






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



(Nos.)


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





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



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



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 `)




263

NOTE No. 8 :- ADMINISTRATIVE AND OTHER EXPENSES

ParticularsS.

No.Account

Code



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



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)


264


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





(P. RAMESH)Chairman

DIN:03551794


DIN: 03319346


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


265

th13 ANNUAL REPORT

DHOLPUR GAS POWER LIMITED(A wholly owned subsidiary of Rajasthan Rajya Vidyut Utpadan Nigam Ltd.)

2018-19

Contents

S.No.





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


AUDITORSM/s S.R. SURANA & CO.Chartered AccountantsC-119, Mangal Marg, Bapu NagarJaipur-302015Phone : (O) 4029477 / 2700879




:::

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.


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.





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


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.


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







knowledge and belief confirm that:




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;


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;




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.


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.


P. Ramesh, IAS

DIN- 03551794

Chairman

Date : 29.08.2019

Place: Jaipur


273

Annexure-I

DHOLPUR GAS POWER LIMITED

FORM NO. MGT-9


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. 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




All the business activities contributing 10% or more of the total turnover of the company shall be stated:-



service

1. Generation of Electricity 35102 No commercial activityhas been carried outduring the financial year




held

1. Rajasthan Rajya U40102RJ2000SGC016484 Holding Company 100 2 (46)Vidyut Utpadan Nigam LimitedVidyut Bhawan, Janpath, Jyoti Nagar, Jaipur-302005


274

4. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)


CATEGORY OF


during

the year


Total Total

Shares Shares

(A)PROMOTERS

(1) INDIAN

(a)Individual /HUF - - - - - - - - -

(b)Central - - - - - - - - - Government


(d)Bodies NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL Corporate


(f) Others - - - - - - - - -

Sub-Total A(1) : NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL

(2)FOREIGN



(c) Institutions - - - - - - - - -


(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


(1)INSTITUTIONS












275

Investors

(i) Others - - - - - - - - -

Sub-Total B(1) : - - - - - - - - -



(b)Individuals - - - - - - - - -



(c) Others - - - - - - - -




Sub-Total B(2) : - - - - - - - - -


Total B=B(1)+B(2) - - - - - - - - -

Total (A+B) : NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL


GRAND TOTAL (A+B+C) : NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL


276

Sr. No

Shareholder’s Name



No. of shares

% of total Shares of the Company


No. of shares



% change in share holding during

the year


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


277


1.

Government of Rajasthan






50,000 100 50,000 100








NIL

At the end of the year 50,000 100 50,000 100


Sl. No.


beginning



Shareholders

No. of Shares


company

No. of Shares


company







NIL



year)


278


Sl. No.


Personnel

director



No. of Shares


No. of Shares









- - - -



Unsecured Loans



i. Principal Amount

NIL NIL NIL NIL


-- -- -- --


-- -- -- --

Total (i+ii+iii) NIL NIL NIL NIL Change in Indebtedness during the financial year

? Addition ? Reduction

-- -- -- --

Net Change -- -- -- --


i. Principal Amount

NIL NIL NIL NIL


-- -- -- --


-- -- -- --

Total (i+ii+iii) NIL NIL NIL NIL

5. INDEBTEDNESSIndebtedness of the Company including interest outstanding/accrued but not due for payment


279


(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 -- --


-- -- -- --


-- -- -- --

(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)

--

--

--

--


--

(B) Remuneration to Other Directors: NIL

Sr. No




- - - -



Total (1) - - - -



- - - -



Total (2) - - - -

Total (B) = (1+2) - - - -




280


Sr. No

Particulars of Remuneration Name of Key Managerial Personnel Total Amount

1. Gross Salary NIL NIL


NIL NIL


NIL NIL


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



Act, 2013

Brief Description














For Dholpur Gas Power Limited

P. Ramesh, Chairman

DIN-03551794

IAS

Place: JAIPURDate : 29.08.2019


281

C-119, MANGAL MARG,BAPU NAGAR,

JAIPUR - 302015Ph: (O) 4029477 / 2700879

S.R. Surana & Co.Chartered Accountants


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.


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


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.


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.


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.


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.


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.


JAIPUR - 302015Ph: (O) 4029477 / 2700879



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.




(Anil Agarwal)

Partner

M. No.073285

Place: Jaipur

Date: 10.07.2019


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


transactions through IT system? Is Yes,

the implications of processing of


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


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


agencies hence there is no case of

deviation.

S.No. General Direction Impact/Comments

1.

2.

3.

Place:Jaipur

Date: 10.07.2019


JAIPUR - 302015Ph: (O) 4029477 / 2700879





(Anil Agarwal)

Partner

M. No.073285


287


JAIPUR - 302015Ph: (O) 4029477 / 2700879


Annexure – C to the Independent Auditor’s Report


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.


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





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.






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.



288

for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting









receipts and expenditures of the company are being made only in accordance with authorizations


prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s


Inherent Limitations of Internal Financial Controls Over Financial Reporting







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.




(Anil Agarwal)

Partner

M. No.073285

Place:Jaipur

Date:10.07.2019


263


289

CIN-U40109RJ2006SGC023352

BALANCE SHEET AS AT 31 MARCH, 201st 9


st31 March, 2018As at

st31 March, 2019

ASSETS

1) Non-current assets

(a) Property, Plant and Equipment - -


(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


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


(b) Provisions - -



3) Current 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



290

CIN-U40109RJ2006SGC023352

Statement Of Profit and Loss for the year ended 31 March 201 st9


ston 31 March, 2019

(Amount in `)


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





DIN: 07738499




291

CIN-U40109RJ2006SGC023352

STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31 MARCH 201st9

ParticularsAs at

st31 March, 2019

(Amount in `)


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





DIN: 07738499




292

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294


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



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.





• Expected to be realized or intended to sold or consumed in normal operating cycle;











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




295

Diluted earnings per equity share is computed by dividing the net profit or loss attributable to


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 :



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.


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 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



(Nos.)


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




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



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




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



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



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)


299


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


FRN 000990C(P. RAMESH)Chairman

DIN: 03551794


DIN: 07738499




300


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




accounting records.




Place : Jaipur

Date : 16.08.2019




th13 ANNUAL REPORT

GIRAL LIGNITE POWER LIMITED(A wholly owned subsidiary of Rajasthan Rajya Vidyut Utpadan Nigam Ltd.)

2018-19

Contents

S.No.





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


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)




:::

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)


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


303


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.





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.


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


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.


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;


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.


(P. Ramesh)

DIN-03551794

Chairman

Vidyut Bhawan, Janpath, Jyoti Nagar,

Jaipur-302005

Date: 19.11.2019

Place: Jaipur


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 :


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.



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.


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


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.


310

E-295-296, Speakwel House, 2nd Floor


Tel: +91- 0141-4030077

[email protected]


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,


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


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.)


312

E-295-296, Speakwel House, 2nd Floor


Tel: +91- 0141-4030077

[email protected]


Company Secretaries

“Annexure-A”

To The Members,


CIN: U40109RJ2006SGC023356


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


313

Annexure-III

GIRAL LIGNITE POWER LIMITED

FORM NO. MGT-9






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







service

1. Generation of Power 35102 100%




held

1. Rajasthan Rajya U40102RJ2000SGC016484 Holding Company 100 2 (46)Vidyut Utpadan Nigam LimitedVidyut Bhawan, Janpath, Jyoti Nagar, Jaipur-302005

st


314

4. SHARE HOLDING PATTERN (Equity Share Capital Break up as percentage of Total Equity)


CATEGORY OF


during

the year


Total Total

Shares Shares

(A)PROMOTERS

(1) INDIAN

(a)Individual /HUF - - - - - - - --

(b)Central - - - - - - - -- 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


(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



(c) Institutions - - - - - - - - -


(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


(1)INSTITUTIONS












315

Investors

(i) Others - - - - - - - - -

Sub-Total B(1) : - - - - - - - - -



(b)Individuals - - - - - - - - -



(c) Others - - - - - - - -




Sub-Total B(2) : - - - - - - - - -


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


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


316


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.


1.

Rajasthan Rajya VidyutUtpadan Nigam Limited






37,00,50,000 100 100








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


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


317


Sl. No.


beginning Cumulative Shareholding during the year


Shareholders

No. of Shares


company

No. of Shares


company







NIL



year)


Sl. No.


Personnel

director



No. of Shares


No. of Shares









- - - -



318

5.INDEBTEDNESSIndebtedness of the Company including interest outstanding/accrued but not due for payment


Unsecured Loans



i. Principal Amount 3,02,59,42,376 - - 3,02,59,42,376


- - - -

iii.


-

-

-

-

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


i.

Principal Amount

2,35,09,98,388

-

-

2,35,09,98,388

ii.


-

-

-

-

iii.


-

-

-

-

Total (i+ii+iii)

2,35,09,98,388

-

-

2,35,09,98,388


319


(A) Remuneration to Managing Director, Whole-Time Directors and/or Manager:

(B) Remuneration to Other Directors:

Sr. No




- - - -



Total (1) - - - -



- - - -



Total (2) - - - -

Total (B) = (1+2) - - - -



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)


-

-

-

-

(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.


Gratuity Trust&Superannuation Trust

Leave Encashment

1.47

0.64

1.64

0.85

-

-

Total (A)

11.53

12.74

-

-



320




Act

Brief Description














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)


-

(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.


-

Total (A)

-


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:


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


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


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


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


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.


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


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.


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.


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.


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


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


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


326

“ANNEXURE A”(BASIS OF QUALIFIED OPINION)



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


327



FRN: 003337C


(CA VISHAL GUPTA)

Partner

M.No.: 403982



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.


299


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.


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.


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


329



FRN: 003337C


(CA VISHAL GUPTA)

Partner

M.No.: 403982



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.


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.


331



FRN: 003337C


(CA VISHAL GUPTA)

Partner

M.No.: 403982



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.


332

st BALANCE SHEET AS AT 31 MARCH, 2019


st31 March, 2019


I ASSETS

1 Non-Current Assets

(a) Property, Plant and Equipment 1 89,705.16 97,336.27


(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


(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


(i) Borrowings 11 23,509.98 30,259.42

(ii) Other financial liabilities 12 0.19 -

(b) Provisions - -



Total Non-Current Liabilities 23,510.18 30,259.42

(Amount in Lakhs)CIN : U40109RJ2006SGC023356


333

2 Current 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)


st31 March, 2019


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.


FRN 003337C


(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


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)


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)





FRN 003337C


(P. RAMESH, IAS)

Chairman

DIN-03551794

(H.S. CHARAN)

Managing Director

DIN-8410368




M No.- 403982


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:


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)





FRN 003337C


(P. RAMESH, IAS)

Chairman

DIN-03551794

(H.S. CHARAN)

Managing Director

DIN-8410368




M No.- 403982


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)


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)





FRN 003337C


(P. RAMESH, IAS)

Chairman

DIN-03551794

(H.S. CHARAN)

Managing Director

DIN-8410368




M No.- 403982


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




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













338







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


e. Expenditure on major inspection and overhauls of production plant is capitalized,


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


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


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.


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.




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.


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.


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.


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


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.


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


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.


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


equity shares outstanding during the financial year.

ii. Diluted earnings per equity share is computed by dividing the net profit or loss


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.




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.


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.


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.


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.


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


345

before the earliest period presented, the opening balances of assets, liabilities and equity for

the earliest period presented, are restated.


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



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.


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.


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.


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


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


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.


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






FRN 003337CUDIN : 19403982AAAAAY6488

(P. RAMESH, IAS)

Chairman

DIN-03551794

(H.S. CHARAN)

Managing Director

DIN-8410368




M No.- 403982


348

Note

No.

1-:

Non

-Curr

en

t A

ssets

: P

ropert

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Pla

nt

an

d E

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men

t(A

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Com

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unde

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com

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con

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Addi

tions

durin

g

2018

-19

Adju

stm

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Balan

ce a

s at

Marc

h 31

, 201

9

Balan

ce a

s at

1st A

pril,

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8

Busin

ess

Com

bina

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unde

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cont

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tions

durin

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2018

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Adju

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at

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70.61

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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


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


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)


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


Add: Addition made during the year:-


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


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


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


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)


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



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




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


(Amount in Lakhs)

(Amount in Lakhs)

(Amount in Lakhs)

(Amount in Lakhs)


356

NOTE No. 21-: Employee Benefit Expense

ParticularsAccount


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


NOTE No. 22-: Finance Cost

ParticularsAccount


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


(Amount in Lakhs)

(Amount in Lakhs)


357

NOTE No. 23-: Administrative & Other Expenses

ParticularsAccount


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


NOTE No. 24-: Movement in Regulatory Deferral Account Balances

ParticularsAccount


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


(Amount in Lakhs)

(Amount in Lakhs)


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


(Amount in Lakhs)


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


360

B Transactions with Related Parties


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)


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


FVTPL Amortised Cost

Financial Liabilities

Borrowings - 23,509.98

Trade payables - 3,319.48

Other financial liabilities - 1,65,787.67



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


FVTPL Amortised Cost


Borrowings - 30,259.42

Trade payables - 3,273.70

Other financial liabilities - 1,34,864.31


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)


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


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


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:


JVVNL - -

AVVNL - -

JDVVNL - -

(Amount in Lakhs)

(Amount in Lakhs)


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:


365

Regulatory deferral account - debit balance (Note No. 9)


Opening Balances 9,860.52 10,405.87

Addition during the year - -


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)


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




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. - -


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


Licensed Capacity (MW) 250MW 250MW

Installed Capacity (MW) 250MW 250MW

st9


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.


368


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




accounting records.




st




Place : Jaipur

Date : 17.09.2019

Directors' Report RVUNL · Unit-6 was declared on commercial operation (COD) on 2.04.2019. ii)...

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