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RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.(A Government of Rajasthan Undertaking)

16th ANNUAL REPORT2015-2016

LIST OF DIRECTORS(AS ON DATE OF 16th AGM)

1. Sh. Nageen Kumar Kothari (DIN-07649438) - Chairman & Managing Director2. Sh. Sanjay Malhotra, IAS (DIN-00992744) - Director3. Sh. Praveen Gupta, IAS (DIN-03521006) - Director4. Ms. Arti Dogra, IAS (DIN-02821192) - Director5. Sh. Ram Gopal Gupta (DIN-00173937) - Director6. Sh. Arun Kumar Gupta (DIN-06948144) - Director7. Dr. Murari Lal Gupta (DIN-07580613) - Director (Finance) & Chief Financial

Officer (CFO)8. Sh. Shyam Swaroop Meena (DIN-03319346) - Director (Technical)9. Sh. Prahalad Sahai Arya (DIN-07646220) - Director (Projects)

CHIEF CONTROLLER OF ACCOUNTSSh. A.K.C. Bhandari

COMPANY SECRETARY & COMPLIANCE OFFICERSh. S.G.V.S. Subrahmanyam

(FCS-3962)

STATUTORY AUDITORSM/s Om Agarwal & Co.,

Chartered Accountants,B-1, Subh Labh Aptt., D-37, Subhash Marg,

Near Ahinsa Circle, C-SchemeJaipur-302001

DEBENTURE TRUSTEEAllBank Finance Limited

Allahabad Bank Bldg., 2nd Floor,37, Mumbai Samachar Marg, Fort,

Mumbai-400023

BANKERSState Bank of Bikaner & Jaipur

REGD. OFFICE & HEAD OFFICECIN - U40102RJ2000SGC016484

Vidyut BhawanJanpath, Jyoti Nagar

Jaipur - 302005Phone : 0141-2740692

Fax : 0141-2740633Website : www.rajenergy.com

www.rvunl.com

Contents

S.No. Particulars Page Nos.

1. Board’s Report 1-34

(i) Annexure-I List of Power Stations/Units of RVUN (15)

(ii) Annexure-II Abstract of CSR Policy of RVUN (16)

(iii) Annexure-III Management’s Response to Statutory Auditor’s (17-21)

(iv) Annexure-IV Secretarial Audit Report (22-25)

(v) Annexure-V MGT-9 (26-33)

(vi) Annexure-VI Statement disclosing Related Party Transactions (34)

2. Statutory Auditors Report on Standalone Financial Statements 35-48

3. Standalone Financial Statements along with Singnificant 49-106Accounting Policies & Notes on Accounts

4. Statement related to Subsidiary Companies and Associated 107-108Companies

5. Statutory Auditors Report on Consolidated Financial Statements 111-121

6. Consolidated Financial Statements along with Singnificant 122-182Accounting Policies & Notes on Accounts

7. Supplementry Audit Report & Management's Response to CAG's 183-188Comments

Subsidiary Companies

8. Annual Report of Chhabra Power Ltd. for the year 2015-16 191-218

9. Annual Report of Dholpur Power Ltd. for the year 2015-16 219-246

10. Annual Report of Giral Lignite Power Ltd. for the year 2015-16 247-306

ANNUAL REPORT 2015-16 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.

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BOARD’S REPORT

To the Members,

Your Directors are pleased to present the Sixteenth Annual Report on the business and operations of theCompany and the Audited Statement of Accounts for the financial year ended 31st March, 2016.

1. Highlights of the period under review

During the period under review, the Company has incurred loss of Rs.938.96 Crores for the financialyear 2015-16 as against the loss of Rs.2636.92 crores in the previous financial year (2014-15). TheCompany has taken various measures for improving performance of its Power Stations and due to all outefforts, losses of the Company have been significantly reduced in 2015-16. The efforts put in by RVUNhave also been acknowledged and appreciated by the Task Force for Power Sector Review, constitutedby the State Government under the chairmanship of Sh. R V Shahi, former Secretary (Power), GoI.RVUN is committed to bring in more efficiency in Plant operations and achieve further loss reduction infinancial year 2016-17 to achieve break-even/ net profit.

The commercial operation of Unit-2 of Kalisindh TPP in Jhalawar has been declared on 25.07.2015.Work of setting up two 2x660 MW Supercritical technology based Coal Thermal Power Plants at Chhabra(Units-5&6) and Suratgarh (Units-7&8) totaling to an additional generation capacity of 2640 MW, isbeing carried out by L&T Ltd. and BHEL respectively. Unit-5 of Chhabra Super Critical Thermal PowerProject has been successfully synchronized on oil on 02.10.2016. Execution of the 160 MW Stage-IV ofRamgarh Gas TPP has been kept on hold due to non-finalization of gas prices.

Pursuant to the directions of the State Government, RVUN has transferred 125 MW Unit-2 of GiralLignite Thermal Power Station to its wholly owned subsidiary - Giral Lignite Power Limited (GLPL), ona 'going concern basis', along with all its assets & liabilities on book value with effect from 1.04.2015,being the effective date of transfer.

As part of restructuring exercise, RVUN has also initiated the process of disinvestment of Chhabra TPS(4x250 MW operational plus 2x660 MW Supercritical Units), Kalisindh TPS (2x600 MW) and GiralLignite Power Limited (operating 2x125 MW lignite based power palnt).

Financial Results (Standalone & Consolidated)

The summarised financial results (Standalone & Consolidated) of the Company for the year ended31st March 2016 are as under -

(` in Crores)

Particulars Standalone Consolidated

Current Previous Current PreviousYear Year Year Year

2015-16 2014-15 2015-16 2014-15

Revenue from Sale of Power* 9962.05 9080.65 10054.28 9109.92

Revenue Subsidies & Grants and other Income 38.34 29.71 38.71 30.80

Total Income 10000.39 9110.36 10092.99 9140.72


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Cost of Generation of Power* 7522.97 8854.19 7565.27 8869.01

Other Expenditure* 790.67 577.42 815.26 596.79

Profit/(Loss) before depreciation, interest and tax 1686.75 (-) 321.25 1712.46 (-) 325.09

Less: i) Depreciation 1055.89 904.77 1142.78 942.56

ii) Interest, finance charge and lease rentals* 1979.74 1393.01 2084.74 1423.49

Profit/ (Loss) for the period (-) 1348.88 (-) 2619.03 (-) 1515.06 (-) 2691.13

Add/Less: Exceptional Items 94.79 -- 94.79 --

Profit/ (Loss) before extra ordinary item & tax (-) 1254.09 (-) 2619.03 (-) 1420.27 (-) 2691.13

Add/Less: Extra ordinary items -- -- 24.34 --

Profit/ (Loss) before Prior period item & tax (-) 1254.09 (-) 2619.03 (-) 1395.93 (-) 2691.13

Add/Less: Prior period credits/ (expenses) 315.13 (17.89) 319.80 11.96

Profit/ (Loss) before tax (-) 938.96 (-) 2636.92(-) 1076.13 (-) 2679.17

Less: Provision for Tax 0.00 0.00 0.54 0.00

Profit / (Loss) after tax (-) 938.96 (-) 2636.92 (-) 1076.67 (-) 2679.16

Appropriations NIL NIL NIL NIL*The figures are net of the amount capitalized during the year. Revenue include Return on Equity @ 5%.

2. Transfer to Reserves & Dividend

No profits being available for appropriation, the Board is unable to recommend payment of dividend forthe year nor is proposing to carry any amount to reserves.

3. Generation & Plant Performance

The total installed capacity of various Thermal & Hydel Power Stations owned and run by your Companypresently is 5957.35 MW (including 2x125 MW Giral Lignite TPS operated by Giral Lignite PowerLimited, a wholly owned subsidiary of RVUN) and the detailed list of Power Stations / Units is placed atAnnexure- I. During the year, annual deemed and actual Plant Load Factors achieved by Kota TPS wereat 89.89% (71.33%), Suratgarh TPS at 80.87% (44.80%), Chhabra TPS at 58.01% (50.93%), KalisindhTPS at 72.63% (66.64%), Dholpur Gas TPS at 28.53% (11.39%), Giral TPS at 11.60% (11.57%) andRamgarh GTPS at 65.43% (64.08%). (Figures in brackets denote actual PLF after backing downinstructions by Load Dispatch Centre).

A total of 26403.00 Million Units (27736.75 MU in 2014-15) of electricity was generated during the year2015-16. A total of 23921.97 Million Units (25122.52 MU in 2014-15) were sold to the three PowerDistribution Companies of the State viz., Jaipur Vidyut Vitran Nigam Ltd. (Jaipur Discom), Ajmer VidyutVitran Nigam Ltd. (Ajmer Discom) and Jodhpur Vidyut Vitran Nigam Ltd. (Jodhpur Discom), as per thePower Purchase Agreement (PPA) with the aforesaid three Discoms, at a pre-determined ratio, afterreducing the auxiliary consumption. The aforesaid generation does not include infirm power of new/extension units commissioned during the year under review.

During the year, a fire accident took place in Generator Transformer of Unit-1 of Chhabra ThermalPower Station on 18.08.2015 due to which loss of Rs. 33.04 crore (Estimated Cost just after incident ofRs.19.60 crore and Reinstatement Cost of Rs.13.44 crore) has been incurred by RVUN. The date of


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restoration of the Unit-1 of Chhabra TPS was 10.03.2016 and M/s BHEL, Bhopal carried out the repairworks.

4. Fuel Supply Management

i) Coal :

The major requirement of coal is met by coal received from SECL & NCL, the subsidiaries ofCoal India Ltd., through Fuel Supply Agreements (FSA) for all the units commissioned before31.03.2009 and also the Chhabra Units-1&2, Kota Unit-7, Suratgarh Unit-6 commissionedthereafter.

ii) Captive Mining :

A. Parsa East and Kanta Basan coal blocks: In pursuance of Coal Mines (SpecialProvisions) Rules, 2014 and Coal Mines (Special Provisions) Act, 2015, RVUN appliedfor re-allocation of 'Parsa East & Kanta Basan' coal blocks (which were earlier cancelledby Hon'ble Supreme Court) and Ministry of Coal re-allocated the same to RVUN on24.03.2015. Allotment Agreements were executed with Ministry of Coal on 26.03.2015for Parsa East & Kanta Basan coal blocks and Allotment Order was issued on 31.03.2015.Presently, the coal block is under operation and coal from these coal blocks is beingdispatched to RVUN TPPs.

B. Parsa coal block : A new coal block, namely, 'Parsa' was also allotted to RVUN andAllotment Agreement was executed with Ministry of Coal on 30.03.2015 and AllotmentOrder was issued on 8.09.2015. The development activities of coal block which includevarious approvals/ clearances have been initiated. RVUN received the already approvedMining Plan of 'Parsa' coal block from Nominated Authority of Ministry of Coal videvesting order dated 08.09.2015. However, the Mining Plan needs incorporation ofwashery as the End Use Power Plant is located beyond 500 Km from Mine Site. MiningPlan incorporating washery has been submitted on 13.06.2016 to MoC. Presentationof the Mine Plan and Mine Closure Plan (1st Revision) has been delivered on 8.08.2016before the Technical Members of Standing Committee of MoC constituted under MMDRAct, 1957. Application for ToR Transfer & Extension submitted on 08.02.2016 &16.04.2016. MoEF accepted the application on 20.05.2016 and is under process ofapproval by MoEF. Certified Land Schedule has been obtained and Land AcquisitionPlan is under process.

C. Kente Extension coal block: Besides, the formal letter of allotment for 'KenteExtension' coal block which was originally allotted in August, 2013, has also beenissued by Ministry of Coal on 31.03.2015. 'Coal Mine Development & ProductionAgreement' (CMDPA) with the Ministry of Coal, GoI for 'Kente Extn' Coal Block allocatedto RVUN on 31.03.2015 under Rule 4(3) of the 'Auction by Competitive Bidding ofCoal Mines Rules, 2012 has been executed between MoC, GoI and RVUN on26.10.2015. First Amendment to the 'Coal Mine Development & Production Agreement'(CMDPA) has also been executed on 10.08.2016 for revised boundary coordinates.


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The development activities regarding detailed exploration have been initiated which includepurchase of Geological data from GSI. Boundary Coordinates for Kente Extension coal blockhave been received from CMPDIL and Prospecting License application submitted to DGM,Chhattisgarh on 19.08.2015. Online Registration for Forest Clearance for PL is done on26.04.2016. DGPS Survey is completed and report finalized on 01.07.2016.

iii) Gas:

Gas Supply at RGTPP:-

M/s GAIL is supplying 0.70 mmscmd natural gas from gas fields of OIL, 0.05 mmscmd from gasfields 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-IIIUnits. 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 160MW, Stage-IV extension Unit with GAIL. Negotiations for finalization of prices for the gas are stillunder process.

Gas supply at DCCPP:-

The production at PMT gas fields & KG D-6 is declining year by year, therefore availability ofgas reducing against the Contracted Quantity.

iv) Lignite & Limestone:

A Fuel Supply Agreement (FSA) for long term supply of lignite and limestone for the 1x125 MW,Giral Lignite Thermal Power Project has been entered with Rajasthan State Mines & MineralsLtd. (RSMML) on 19th May, 2009. The 2nd unit of 125 MW has also been commissioned on26th December, 2008 and RSMML has been supplying lignite and limestone for operating thePower Station.

5. Commissioning of new Units

KaTPP Unit-2 was commissioned on 6.06.2015 and COD achieved on 25.07.2015. Unit-5 of ChhabraSuper Critical Thermal Power Project has been successfully synchronized on oil on 2.10.2016.

Project Cost Escalation: The Board of Directors accorded its approval for enhancement of capital cost ofUnits- 1&2 of Chhabra, Units-1&2 of Kalisindh Thermal Power Project, Units- 3 & 4 of Chhabra Stage-III and of Ramgarh Gas based Power Project. In case of Units- 1&2 of Chhabra TPP, the Project cost hasincreased from Rs. 2350 Crores to Rs. 2820 Crores, in the case of Units-1&2 of Kalisindh Thermal PowerProjects, the cost has increased from Rs. 7723 Crores to Rs.9479.51 Crores, in case of Units- 3&4 ofChhabra TPP, the Project cost has increased from Rs. 2200 Crores to Rs.3033.50 Crores and in case ofStage -III of Ramgarh Gas based Power Project, the Project cost has increased from Rs.640 Crores toRs.890 Crores. Approval of the State Government has been accorded to the above cost estimates ofvarious Projects.

The above escalation has been mainly due to delays in Commissioning of units by various reasons andaddition of new system/schemes, which have not been envisaged at the time of project cost estimation.Besides, the non-recovery of operating & maintenance expenditure from the State Power Distribution


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Companies against the power generated upto the date of CoD has also led to the increase in the capitalizedpre-operative expenses of the above Units.

6. Progress in Ongoing Projects

As reported earlier, the Company has taken up two Supercritical technology based Power Projects (2x660MW each) as Extension Projects of the existing Thermal Power Stations at Suratgarh and Chhabra andalso 160 MW Extension Project of Ramgarh GTPP. Progress of these projects is as under:-

i) Chhabra Supercritical Extn. Project (2x660 MW Units-5&6 Stage-II):

Environmental Clearance has been issued by MOEF, New Delhi on 23.05.2012 for Unit-5.Orders have been placed on EPC basis upon M/s L&T Ltd. 'Consent to Establish' for Unit-5 hasbeen issued for the project by RSPCB on 4.06.2013. EC for Unit-6 -has been issued by MoEFon 02.02.2015, validity of consent to establish for Units-5&6 has been extended till 31.08.2018.Foundation Stone has been laid on 17.09.2013.

Construction & commissioning activities for Unit-5 such as Boiler, Turbine, ESP, BFP, ID&FDFans, Stack, Cooling Tower have been completed. Boiler of Unit-05 lighted up on 22.08.2016and Turbine Generator put on barring gear on dated 12.06.2016. This Unit has been successfullysynchronized on oil on 2.10.2016.

Works on Unit-6 are under full swing after granting Environmental Clearance on 02.02.2015by MoEF,New Delhi and expected to be commissioned by June, 2018 in early 13th Plan.

ii) Suratgarh Supercritical Extn. Project (2x660 MW Units-7&8 Stage-V):

Environmental Clearance has been issued by MOEF, New Delhi on 23.05.2012. Orders havebeen placed on EPC basis upon M/s BHEL. Consent to Establish has been issued for the projectby RSPCB on 4.06.2013, validity of consent to establish extended upto 22.05.17. FoundationStone has been laid on 20.06.2013. Major construction activities (more than 80%) for Unit-7such as Boiler, Turbine, ESP have been completed .Boiler drainable Hydro-Test successfullycompleted on 31.12.2015. This Unit is expected to be commissioned by April, 2017.

For Unit-8 also, major construction activities (more than 80%) such as Boiler, Turbine, ESP havebeen completed. Boiler drainable Hydro-Test has also successfully completed on 15.03.2016.This Unit is also expected to be commissioned by August, 2017.

iii) Ramgarh Gas Based Exp. Power Project (160 MW, Stage-IV):

Environmental Clearance for the projects has been issued on 08.11.2012. M/s Desein has beenappointed as Project Consultant. BHEL has been awarded orders for Main Plant Equipments.Order for BOP Package was awarded to M/s Techpro Ltd., which was cancelled and new onlinetenders had invited on risk & cost basis, but validity of the bid opened have been lapsed/expired. Consent to Establish has been issued for the project by RSPCB on 5.06.2013. FoundationStone for 160 MW, RGTPP, Stage-IV has been laid on 8.06.2013 and A consultant was alsoappointed to advise the feasible price band, taking into account all factors of the site as well asmarket scenario and also to assist RVUN in effective negotiations of gas prices with M/s FocusEnergy & M/s GAIL. M/s Focus offered Gas prices USD/5.5 MMBTU. But prices are still to befinalised.


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7. New/ Future Power Projects

The State Government has earlier entrusted the Company to create additional Generation Capacity of4950 MW by setting up the following new Power Projects. The Government is reviewing these projectsconsidering the anticipated power demand in coming years and also exploring the possibility of developingsome of these projects under Case-2 basis, etc. Preliminary activities of these projects have been initiatedearlier but now under hold.

i. Banswara coal based TPP (2x660 MW Units-1&2)

ii. Kalisindh TPS Extn. Project (2x660 MW Stage-II)

iii. Suratgarh TPS Extn. Project (2x660 MW Stage-VI)

iv. Gas based projects at Dholpur (330 MW), Kota (330 MW) & Chhabra (330 MW)

8. Restructuring & Disinvestment

The Hon'ble Chief Minister of Rajasthan, in her Budget Speech for the year 2014-15, announceddisinvestment of 10% equity of RVUN during the financial year. For the purpose, a Committee under theChairmanship of Secretary, Energy has been constituted by the State Government for disinvestment andlisting of RVUN. Pursuant to decision of the said Committee, M/s Ernst & Young (E&Y) has been appointedas Advisor to discuss & understand with the Management about the strategy for improving its performanceby restructuring operations, including divesting some of the Power Plants or disinvestment of equityshareholding of the State Government and other such methods, including the feasibility of raising fundsby Offer for Sale of shares on Stock Exchanges and listing thereof. After detailed study and examinationE&Y submitted their recommendations including disinvestment of Chhabra TPP and Kalisindh TPP.Further, M/s Kanti Karamsey & Co., Mumbai was appointed as an Asset Valuer for valuation of RVUN'sAssets for the purpose of Management Review.

Disinvestment of Chhabra TPS

As per recommendation of E&Y and advice of Task Force for Power Sector, the Cabinet Memo fordisinvestment of Chhabra TPS (4x250 MW operational Units + 2x660 MW Units under construction)giving both the options, namely, 'negotiated deal with NTPC' and 'open competitive bidding' was submitted.The State Cabinet accorded its approval on 23.02.2016.

Simultaneously, M/s Ernst & Young (E&Y) was appointed as Transaction Advisor and M/s P H Bathiya &Associates, Mumbai, as Legal Advisor. Expression of Interest (EOI) and Preliminary InformationMemorandum (PIM) for disinvestment of Chhabra TPP through Open Competitive Bidding route, werepublished on 24.06.2016. Five applicants have submitted EOIs and shortlisting of eligible bidders hasbeen completed. RFP document is being issued to the shortlisted applicants. The transaction is targetedto be completed by 31st March 2017.

Disinvestment of Kalisindh TPS

As per recommendation of E&Y and advice of Task Force for Power Sector, cabinet note for disinvestmentof Kalisindh Thermal Power Plant (2x600 MW operational Units + 2x660 MW proposed Units) throughCase-2 tariff based bidding was submitted. The State Cabinet accorded its approval on 23.02.2016.


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However, with a view to reduce the cost of generation the Task Force for Power Sector advised to set-upthe new Supercritical units at the pithead in place of Kalisindh, Jhalawar and also advised to disinvestUnits-1&2 of Kalisindh TPS through open competitive bidding as being done in Chhabra TPS. Therevised cabinet note has been submitted for approval and the same is under process. Appointment ofTransaction Advisor will be made shortly. The transaction is targeted to be completed by June 2017.

Disinvestment of GLPL

Considering operational problems and heavy financial losses being incurred by both Units of Giral LigniteThermal Power Station, the Board of Directors of RVUN decided for disinvestment of total assets of boththe Units 1 & 2 of Giral LTPS, by way of Strategic Sale of RVUN's equity shareholding in Giral LignitePower Limited. The matter was submitted to the State Government for according Cabinet approval andthe State Cabinet has accorded its approval for the same on 14.09.2016. Simultaneously, variousintermediaries have also been appointed, viz., SBI Capital Markets Ltd. as Transaction Advisor,M/s RBSA Valuation LLP as Asset Valuer and M/s P H Bathiya & Associates, Mumbai, as Legal Advisor.

Preliminary Information Memorandum (PIM) for disinvestment of GLPL through Open CompetitiveBidding route, published on 23.09.2016. The last date for submission of Expression of Interest (EOI) forthe purpose was 30th November, 2016 and five applicants have submitted EOIs upto that date. Thetransaction is targeted to be completed by April, 2017.

9. Environment

As reported earlier, your Company continued to take adequate measures to control pollution and ensureatmospheric emissions within the prescribed limits of Environment (Protection) Act, 1986 at all its Coal/Lignite based Thermal Power Stations. Similarly, several industries like cement, bricks, blocks, tilesmanufacturer, etc. have been encouraged for utilizing the ash generated from all the existing as well asupcoming Thermal Power Stations and long term Agreements/ MoUs have been executed for the purpose.A fly ash policy has been formulated to ensure smooth disposal thereof after expiry of the existingAgreements/ MoUs. The Company is setting up highly efficient Supercritical Power Projects, so as toensure lower emissions and greener environment.

RVUNL affirms its commitment for environment and to deal proactively with Climate change issues byefficient & optimum use of natural resourcing & equipments, adoption of latest technologies, minimizationof wastes, maximum ash utilization and ensuring green belt all around the plant for maintaining theecological 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 blocksof 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 minershaving minimum dust emission.

10. 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 asfuture 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,


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the above CSR Policy has been approved by the State Government on 20.05.2011 and 'CSRImplementation Committees' have been formed at each Power Station/ Project comprising of Membersunder the Chairmanship of the concerned District Collector. The CSR Implementation Committee hasstarted functioning for implementation of CSR activities/ works, as stated in the Policy. Abstract of theCSR Policy approved by the Board of Directors & State Government is enclosed as Annexure-II. TheCompany is in the process of constituting the CSR Committee by appointment of Independent Directorson the Board. Major CSR works undertaken by RVUN are as under:

i. CSRI Committee for Suratgarh Supercritical Thermal Power Project provided Bus facility forferrying approx. 305 children from nearby villages to schools in SSTPS. Various other works/developments executed by CSRI committee include waiving of school tuition fee, providing ofbasic infrastructure like furniture, fans, water purifying system, and library. Other works whichare in progress providing of school uniform, computers with printers and water-cooler and manyother activities have also been taken up as part of CSR by CSRI Committee of Suratgarh TPS.An amount of Rs. 27.35 lacs spent during the FY 2015-16.

ii. An amount of Rs. 4.95 crores spent during FY 2015-16 on various activities like construction ofroads in nearby villages, supply of potable water, providing Solar street lights and constructionof railway under bridge by the CSRI Committee of Suratgarh Super Critical Thermal PowerStation.

iii. Various development works amounting to Rs 16.88 lac carried out under Mukhyamantri JalSwavlamban Abhiyan by CSRI Committee at Ramgarh Gas Thermal Power Plant.

iv. An amount of Rs. 4.00 lacs spent during FY 2015-16 for purchasing an ambulance for Dr.Mangal Singh Civil Hospital, Dholpur.

v. An amount of Rs. 10.20 lacs spent during FY 2015-16 for Baithali Irrigation Scheme. In additionto above, an amount of Rs. 49.21 lacs was spent for FY 2016-17 for Mukhyamantri JalSwavlamban Abhiyan by CSRI committee of Chhabra Super Critical Thermal Power Project.

vi. Expenditure of Rs.10.48 Crore (Rs.4.77 crore in 2015-16) incurred for construction of linkroads (B.T. road), availability of drinking water for nearby villages, installing of C.C.T.Vs atJalawar city and nearby area, enhancing of status of education by providing smart class and e-learning. It also includes generation various employment opportunities and empowering womento support their livelihood, distribution of blankets and eatables during Antyodaya Vishal JanKalyan Shivar, plantation, Mukhyamantri Jal Swavalamban Yojana and other sports activities.

11. 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. 10,000 Crores. The paid-up share capitalof the Company has increased to Rs.87,31,09,00,000/- by allotment of 1,44,24,99,900 equity shares ofRs.10/- each aggregating to Rs. 14,42,49,99,000/- to the Hon'ble Governor of Rajasthan during the year2015-16.

Further, the present paid-up share capital of the Company is Rs. 89,04,34,00,000/-.


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12. Loans & Bonds

The Company has tied up financing for all the ongoing Power Projects with Power Finance CorporationLtd. (PFC) and Rural Electrification Corporation Ltd. (REC). Financing for the upcoming SupercriticalPower Projects is also being tied up, for which PFC has already sanctioned 60% of the total borrowingsas per the Project cost. The additional financing to meet the revised/ enhanced Project cost of some ofthe Projects has also been tied up. The Company has made adequate arrangements to meet its workingcapital requirements through PFC, Commercial Banks, REC, etc.

The total Long Term borrowings as at 31st March, 2016 were at Rs. 24397.91 Crores excluding anamount of Rs. 2377.26 Crores of current maturities of long term debt, which is shown under OtherCurrent Liabilities in the Balance Sheet of the Company as per the Schedule-III of the Companies Act,2013. The Short Term borrowings as at 31st March, 2016 were at Rs. 768.74 Crores.

The Company also raised funds in financial year 2014-15 by way of Bonds of Rs. 850 crore in twoTranches. As per Regulation 53(e) of the Securities and Exchange Board of India (Listing Obligationsand Disclosure Requirements) Regulations, 2015 name of the debenture trustee with full contact detailshas to be mentioned.

13. 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 knowledge of theEngineers and workers is updated on a continuous basis both within the organization and from outsidetraining/ refresher courses. New recruitments have been made during the period to staff the newlycommissioned Power Stations as well as Projects under construction. In order to optimize the manpowerat all the Power Stations of the Company, several measures are being taken, including adoption of acomprehensive Transfer Policy, apart from various incentives & deterrents. During the period underreview, Personal & Administration (P&A) wing of RVUN has been assigned the recruitment work onbehalf of all five Power Sector Companies. The competitive exam for the purpose has been conductedthrough 'online mode'. Besides, the P&A wing is also re-drafting all service regulations of all five PowerSector Companies.

With a view to maintain the motivational levels of the employees and incentivise loss reduction, theCompany has revised its Incentive Scheme linking it with loss reduction & performance improvement.

14. Directors, Key Managerial Personnel (KMP) & Committees

Shri Nageen Kumar Kothari has been appointed as Chairman & Managing Director of the Companyw.e.f. 7.11.2016. Shri N M Mathur (DIN-03033375), who was earlier re-appointed as Chairman &Managing Director of the Company for further Six months from 10.03.2016, relinquished charge asChairman & Managing Director of the Company on 10.09.2016 upon completion of his tenure.

During the period under review, Shri R. G Gupta, Director (DIN-00173937) and Ms. Arti Dogra, Director(DIN-02821192) have been appointed as Directors on the Board.

Smt. Gayatri Rathore, IAS (DIN-05196259), Shri PC Jain, Director (DIN-03545146), Shri AshutoshKumar Joshi (DIN-07080434) and Shri M K Agarwal (DIN-07316044) ceased to be Directors during thesaid period.


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Besides, Shri S S Meena (DIN-03319346), Chief Engineer (KaTPP) was appointed as Wholetime Directordesignated as Director (Technical) for a period of one year w.e.f. 19.08.2015 and has been re-appointedfor another one year w.e.f. 19.08.2016. Shri P S Arya (DIN-07646220), Chief Engineer (TD) has beenappointed as Wholetime Director designated as Director (Projects) for a period of two years w.e.f.24.10.2016. Dr. M L Gupta has been appointed as Wholetime Director designated as Director (Finance)and he has also been designated as Chief Financial Officer of the Company.

The Audit Committee of the Board presently comprises of Sh. N K Kothari, Shri Sanjay Malhotra, IASand Shri Arun Kumar Gupta, Directors.

A Borrowings Committee of the Board has been constituted during the period to approve short-term/working capital loans upto a total limit of Rs.3000 Crores in a financial year (Rs.500 Crores in eachcase). The Committee presently comprises of Chairman & MD, Director (Finance) and Director (Technical).

15. Auditors

15.1 Statutory Auditor

The Comptroller & Auditor General of India has appointed M/s Om Agrawal & Co, CharteredAccountants, Jaipur as the Statutory Auditors of the Company, for the financial year 2015-16.

The replies of the Management to the observations of the Statutory Auditors on the AnnualAccounts (Standalone as well as Consolidated) for the financial year ended 31.3.2016, areattached hereto as Annexure-III . The replies of the Management on the report/ comments ofthe Comptroller & Auditor General of India are attached herewith.

15.2 Cost Auditor

M/s K. G. Goyal & Associates, Cost Accountants, Jaipur, has been appointed as the Cost Auditorof the Company to conduct audit of the Cost Accounting records maintained as per provisionsof Section 148(1) of Companies Act, 2013 at all accounting units of RVUN for the financial year2015-16. The Cost Audit Report for the financial year ended on 31st March, 2016 has beenfiled within the prescribed time period under the Companies (Cost Records and Audit) Rules,2014. The said firm has also been appointed for audit of cost records for financial year 2016-17at a remuneration of Rs. 40,000/- which is subject to ratification by the members in the ensuingAnnual General Meeting.

15.3 Secretarial Auditor

M/s Kushawah Kundwani & Associates, Company Secretaries, Jaipur, has been appointed asthe Secretarial Auditor of the Company for the financial year 2015-16. The Secretarial AuditReport for the financial year ended on 31st March, 2016 forms part of this report and is annexedas Annexure IV along with replies of the Management to the observation(s) therein.

16. 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 natureof the Company's business and operations.


11

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 Committeewhich is responsible for redressal of complaints related to sexual harassment. During the financialyear 2015-16, 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 changesand commitments affecting the financial position of the Company between the end of the financialyear 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 whichimpact the going concern status and Company's operation in future.

f) Report on Subsidiaries, Associates Companies

Your Company has following 3 subsidiary and 2 Associate Companies (formed in pursuance toJoint Venture Agreement with Adani Enterprises Limited), as on 31.03.2016 -

S. Name of the company CIN/GLN Holding/ % of No. Subsidiary/ shares

Associate held

1. Giral Lignite Power Ltd. U40109RJ2006SGC023356 Wholly owned subsidiary 100%

2. Dholpur Gas Power Ltd. U40109RJ2006SGC023352 Wholly owned subsidiary 100%

3. Chhabra Power Ltd. U40109RJ2006SGC023353 Wholly owned subsidiary 100%

4. Parsa Kente Collieries Ltd. U10200RJ2007PLC025173 Associate Company 26%

5. Rajasthan Collieries Ltd. U10100RJ2012PLC038382 Associate Company 26%

Pursuant to the decision of the State Cabinet vide order No.72/2015 dated 2.05.2015 andauthorization by the Board of Directors of RVUN, an online application under section 560 of theCompanies Act, 1956 for striking off the name of 'Rajasthan State Coal Mining Company Limited'from the register of Registrar of Companies, Rajasthan was filed on 5.08.2015 along with requisitedocuments as prescribed under the guidelines for Fast Track Exit mode for defunct companies.The Registrar of Companies on 10.09.2015 informed that the name of Rajasthan State CoalMining Company Limited (RSCMCL) has been struck off the Register and the said company isdissolved.

Pursuant to the provisions of Section 129, 134 and 136 of the Companies Act, 2013 read withrules framed thereunder, RVUN had prepared consolidated financial statements of the Company


12

and its subsidiaries and a separate statement containing the salient features of financial statementof subsidiaries, joint ventures and associates in Form AOC-1 forms part of the Annual Report.The financial statements of subsidiary companies along with respective Directors' Report areplaced 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 duringthe year, except allotment of equity shares for an amount of Rs. 185 Crores by Giral lignitePower Ltd. against transfer of Unit-2.

h) Deposits

The Company has not accepted or renewed any amount falling within the purview of provisionsof Section 73 of the Companies Act 2013 ("the Act") read with the Companies (Acceptance ofDeposit) Rules, 2014 during the year under review. Hence, the details relating to deposits asalso requirement for furnishing of details of deposits which are not in compliance with ChapterV of the Act is 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 underSection 92 of the Companies Act, 2013 is included in this Report as Annexure-V and forms partof 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 relatedparties which could be considered material in terms of Section 188 of the Companies Act, 2013.The Company's major related party transactions are generally with its subsidiaries and associatesin the ordinary course of business (Annexure-VI).

k) Board Meetings

During the financial year 2015-16, 14 (Fourteen) meetings of the Board of Directors of theCompany were held as detailed below:

S. Number and date of Meeting Board's Number ofNo. Strength Directors present

1. 247th Board Meeting held on 24.04.2015 7 6


3. 249h Board Meeting held on 13.05.2015 7 6


5. 251st Board Meeting held on 31.07.2015 7 6

6. 252nd Board Meeting held on 21.8.2015 9 8

7. 253rd Board Meeting held on 4.09.2015 8 7


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l) Conservation of Energy, Technology Absorption and Foreign Exchange Earningsand Outgo

i) The Company is making continuous efforts for conservation of energy by reducing theAuxiliary Consumption at its various Power Stations by installation of modern state ofthe art Power Plant equipment, by optimizing the same through timely maintenanceand various other methods to increase efficiency;

ii) As regards technology absorption, the information required under this Section may betreated as nil;

iii) There has been no foreign exchange inflow during the year while total foreign exchangeoutflow was at Rs. 673,30,56,728/- (in rupee terms).

m) Employees' Remuneration

None of the employees of the Company is covered under the provisions of Rule 5(2) of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

n) Risk Management

The Company is in the process of developing & implementing risk management plan.

17. Directors' Responsibility Statement

Pursuant to Section 134 (5) of the Companies Act, 2013, the Directors to the best of their knowledge andbelief state that:

i) in the preparation of the annual accounts, the applicable accounting standards had been followedalong with proper explanation relating to material departures;

ii) such accounting policies have been selected and applied them consistently and such judgmentsand estimates have been made that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the Company as at end of financial year and of the profit of the Companyfor that period;

iii) proper and sufficient care has been taken for the maintenance of adequate accounting recordsin accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of theCompany and for preventing and detecting fraud and other irregularities;


14

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 applicablelaws and that such systems were adequate and operating effectively.

18. Acknowledgement

The Board hereby places on record its appreciation of the continued support received from Governmentof Rajasthan and the concerned Ministries of Government of India. The Board further expresses itsappreciation of the support extended by the Rajasthan Electricity Regulatory Commission, Power FinanceCorporation & all other Financial Institutions, Bankers and other agencies which are instrumental in theRVUN's growth.

The Board places on record its appreciation of the valuable services rendered/ contributions made by itsDirectors and employees whose dedicated contribution has been a source of strength to your Company.

On behalf of the Board of Directors

Sd/-

(Nageen Kumar Kothari)DATE : 13.12.2016 DIN-07649438Place: Jaipur Chairman & Managing Director

Vidyut Bhawan, Jan Path, Jyoti NagarJaipur - 302005


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Annexure - I

List of Power Stations/ Units of RVUN

S.No. Name of Power Station Planned InstalledCapacity 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 Combined Cycle 3x110 MW 330 MWPower Project (GT-1, GT-2 & ST)

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 TPP 1000 MW

1. Phase - 1 (Unit-1 & 2) 2x250 MW 500 MW

2. Phase - 2 (Unit-3 & 4) 2x250 MW 500 MW

VII. Kalisindh TPP (Unit-1&2) 2x600 MW 1200 MW

VIII. Mahi Hydel Power Station Power House-I 2x25 MW 50 MW

IX. Mahi Power House-II 2X45 MW 90 MW

X. Mini Hydel Schemes (10) 23.85 MW

Total 5957.35 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 thecontrol of the Company.


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Annexure-II

Abstract of CSR Policy of RVUN

RVUN is a socially committed organization and aims to actively contribute to sustainable socio-economicdevelopment of the local community and society surrounding its power generating stations which are locatedmostly in remote areas. RVUN will take up community development activities for existing Power Stations inoperation as well as new/ extension power projects and aims to restore the livelihood of the Project AffectedPersons (PAPs) and to undertake the development works in the Project Affected Area (PAA), for which RVUN hasformed 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 perMW (one time) for Coal based Thermal Projects on Supercritical Technology/ Coal based Thermal Projects onSub-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 be0.25% of the total annual Operation & Maintenance charges/ cost allowed by Rajasthan Electricity RegulatoryCommission (RERC).

For the implementation of various activities a CSR Implementation Committee (CSRI Committee) will be formedfor each Power Project/ Station headed by District Collector of the concerned district. The CSRI Committee willidentify 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 Companiesof the State, Panchayat Raj Institutions/ Local bodies, Education Department, etc. shall generally be engaged toexecute these CSR activities/ works.

A separate Bank account shall be opened & maintained for deposit of funds allocated for CSR activities. CSRICommittees shall regularly monitor the progress of the various CSR activities/ works undertaken by it. Ownershipof 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 Policy of RVUN is also available at the website of RVUN http://www.rvunl.com.


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Annexure-III

MANAGEMENT's RESPONSE TO THE STATUTORY AUDITOR'sREPORT ON THE ACCOUNTS OF RVUN (STAND ALONE) FOR THEFINANCIAL YEAR 2015-16MAIN REPORT

No Comment.

BASIS FOR QUALIFIED OPINION.

A. Refer Annexure 'I'.

B. (a to d)

Management does not agree with the Auditor's view as all the matters have already beenadequately disclosed by way of relevant notes.

(e.) Management does not agree with the Auditor's view as the matter has already been adequatelydisclosed by way of relevant note. Further, C& AG has also commented in his audit report thatthe qualification is incorrect as the Board of directors of the company resolved the accountingtreatment of difference between Net book value (assets less Liabilities) transferred to GLPL andpurchase consideration and accordingly approved the adjustment.

Emphasis of Matter

a.) Management does not agree with the Auditor's view. The accounting system of the company is based onThe Electricity (Supply) Annual Accounts Rules, 1985 and the same was designed /customized by M/sS.R. Batliboi & co., Chartered Accountants wherein detailed chart of accounts and instruction for its usehas been mentioned. So the said accounting practice has been uniformly followed by all the 5 companiesof erstwhile RSEB since their inception.

b.) to d.) No comments as factual statement. The matter has already been adequately disclosed at relevant note.

e.) 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 disclosedat note no. 24.

f.) to i.) No comments as factual statement. The matter has already been adequately disclosed at relevant note.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

All these being a Statement of facts consider for no comments separately except this:-

(d) Deviations from Accounting Standards have already been adequately disclosed by relevant notes/accounting policies.

ANNEXURE I TO INDEPENDENT AUDITOR'S REPORT

1. ACCOUNTING OF CERTAIN ITEM ON CASH BASIS :

No comments as these have already been disclosed at 1.1(b) and 1.14 of Accounting Policies.

2. IMPAIRMENT OF ASSETS :

As required by the Accounting Standard (AS-28) "Impairment of Assets" issued by the Institute of CharteredAccountants of India, the company has carried out the assessment of impairment of assets. There are noexternal/internal indicators which lead to any impairment of assets during the year and same has beencertified by the plant's head.


18

3. Fixed Asset, Capital work in progress(CWIP) and depreciation :

3.1 The company is having complete details of capital work in progress as work-order-wise andscheme-wise and transferred the same to fixed assets on COD after issuance of completioncertificate by concerned project authority. Some of adjustments have already been made duringthe year. However, unit officers are being directed to carry out proper accounting adjustments ofremaining pending adjustments.

3.2 The company is having a proper inbuilt Internal Control System which is being reviewed fromtime to time and no fraud/embezzlement has been occurred/noticed during the period.

3.3 The necessary adjustments have been made and due to continuous efforts the balances arereducing year after year.

4. LONG OUTSTANDING /UNRECONCILED BALANCES :

4.1 DEBIT BALANCES

a) Necessary provisions have already been made at various units regarding unreconciledlong outstanding balances. Continuous efforts are being made to reconcile these balancesto carry out necessary adjustments and some of these have been adjusted during theyear.

b) Now, reconciliation towards Trade Receivable for F.Y. 2015-16 has been carried out.

4.2 CREDIT BALANCES

a) These also include very old balances and continuous efforts are being made to reconcilethese balances and carry out necessary adjustment, if required, and these are in reducingtrend.

b) The matter of Indo-Nissan is pending for decision in the Hon'ble Supreme Court.Necessary Accounting adjustment shall be carried out as per decision of the Hon'bleCourt.

c) The concerned officers have been directed to reconcile these balances and ensure thatthe said qualification may not be repeated in the ensuing Financial Year..

d) Due to non-finalization of accounts of sister companies, reconciliation for the year 2015-16 was only pending. Now, reconciliation towards Trade Receivable for F.Y. 2015-16has been carried out.

5. GENERAL/OTHER

5.1 Regarding contingent liabilities, necessary disclosure made at note no. 34.2.

5.2 The matter is under examination, necessary action shall be taken according to the decision inthis regard.

ANNEXURE II TO INDEPENDENT AUDITOR'S REPORT

(i) (a) The company has maintained Fixed Asset Registers following the provisions of the CompaniesAct, however regarding some discrepancies pointed out by the auditors, the concerned projectauthorities have been directed for needful updation in this regard.

(i) (b) Needful directions have been imparted to concerned project/unit authorities to carry out requiredphysical verification of Fixed Asset as per procedure.

(i) (c) Needful directions have been imparted to concerned project/unit authorities to provide the titledeeds and further ensure that the said qulification may not be repeated in the ensuing financialyear.


19

(ii) Needful directions have been imparted to concerned project/unit authorities for carrying out physicalverification of stores & spares committees has been constituted for KTPS, SSTPS, CTPP, kaTPP projectand for remaining projects/units necessary steps shall be taken.

(iii), (iv), (v), (vii) (a), (viii), (x), (xi), (xii), (xiii), (xiv), (xv), (xvi) are being a Factual Position considers for nocomments separately.

(vi) Cost Records maintained under Section 148(1) of the Companies Act, 2013 for the financial year2015-16 has been approved by Board of Directors. Cost Audit Report has been obtained thereon andCRA-4 has also been filed.

(vii)(b) Same has been adequately disclosed in Note no. 34.2(c)(i)(iv) (ix).

(ix) The Company has adequate details of loans including utilization also. Generally company has obtainedTerm Loans for construction of projects and Short term Loans for working capital requirement andutilized for the respective purposes.

ANNEXURE III TO INDEPENDENT AUDITOR'S REPORT

a) Needful directions have been imparted in this regard. Further, internal audit of nine units has beencompleted and requisite efforts are being carried out to complete the Internal Audit for FY 2015-16during current Financial Year.

b) Needful directions have been imparted to concerned project/unit authorities to carry out required physicalverification of Fixed Asset at regular interval.

c) Needful directions have been imparted to concerned project/unit authorities in this regard. Further, Forcarrying out physical verification of stores & spares, committees has been constituted for KTPS, SSTPS,CTPP, kaTPP project and for remaining projects/units necessary steps shall be taken.

d) Due to non-finalization of accounts of sister companies, reconciliation for the year 2015-16 was onlypending. Now, efforts are being made to reconcile the same and necessary accounting adjustment shallbe carried out, if required. Now, reconciliation towards Trade Receivable for F.Y. 2015-16 has beencarried out.

e) & f) same has been adequately disclosed by way of relevant note.

g) Management does not agree with the Auditor's view as the only authorized official has the rights tooperate the Tally ERP-9 software for making required accounting entries.

However efforts are being made for strengthen the internal financial control system of the company and requisiteorders /circulars have been issued by the management as and when felt necessary.


20

MANAGEMENT's RESPONSE TO THE STATUTORY AUDITOR's REPORT ON THE ACCOUNTSOF RVUN (CONSOLIDATED) FOR THE FINANCIAL YEAR 2015-16

MAIN REPORT

No Comment.

Basis for Qualified Opinion:-

A. Refer Annexure I

B. (a to d)

Management does not agree with the Auditor's view as all the matters have already been adequatelydisclosed by way of relevant notes.

(e.) Management does not agree with the Auditor's view as the matter has already been adequatelydisclosed by way of relevant note. Further, C& AG has also commented in his audit report thatthe qualification is incorrect as the Board of directors of the company resolved the accountingtreatment of difference between Net book value (assets less Liabilities) transferred to GLPL andpurchase consideration and accordingly approved the adjustment.

Emphasis of Matter

a.) Management does not agree with the Auditor's view. The accounting system of the company is based onThe Electricity (Supply) Annual Accounts Rules, 1985 and the same was designed /customized by M/sS.R. Batliboi & co., Chartered Accountants wherein detailed chart of accounts and instruction for its usehas been mentioned. So the said accounting practice has been uniformly followed by all the 5 companiesof erstwhile RSEB since their inception.

b.) No comments as factual statement. 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.

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 disclosedat note no. 24.

e.) to i.) No comments as factual statement. The matter has already been adequately disclosed at relevant note.

Other matters: - No Comments

Report on Other Legal and Regulatory Requirements:- All these being a Statement of facts consider for nocomments separately except this:-

(d) Deviations from Accounting Standards have already been adequately disclosed by relevant notes/accounting policies.


1. ACCOUNTING OF CERTAIN ITEM ON CASH BASIS:

No comments as these have already been disclosed at 1.2(b) and 1.15 of Accounting Policies.


As required by the Accounting Standard (AS-28) "Impairment of Assets" issued by the Institute of CharteredAccountants of India, the company has carried out the assessment of impairment of assets. There are noexternal/internal indicators which lead to any impairment of assets during the year and same has beencertified by the plant's head.

3. Fixed Asset, Capital work in progress (CWIP) and depreciation:

3.1 The company is having complete details of capital work in progress as work-order-wise andscheme-wise and transferred the same to fixed assets on COD after issuance of completioncertificate by concerned project authority. Some of adjustments have already been made duringthe year. However, unit officers are being directed to carry out proper accounting adjustments ofremaining pending adjustments.


21

3.2 The company is having a proper inbuilt Internal Control System which is being reviewed fromtime to time and no fraud/embezzlement has been occurred/noticed during the period.

3.3 The necessary adjustments have been made and due to continuous efforts the balances arereducing year after year.

4 LONG OUTSTANDING /UNRECONCILED BALANCES:

4.1 DEBIT BALANCES

a) Necessary provisions have already been made at various units regarding unreconciled longoutstanding balances. Continuous efforts are being made to reconcile these balances to carryout necessary adjustments and some of these have been adjusted during the year.

b) Now, reconciliation towards Trade Receivable for F.Y. 2015-16 has been carried out.

4.2 CREDIT BALANCES

a) These also include very old balances and continuous efforts are being made to reconcile thesebalances 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 furtheraction regarding adjustment will be taken as per decision of the Hon'ble Court.

c) The concerned officers have been directed to reconcile these balances and ensure that the saidqualification may not be repeated in the ensuing Financial Year.

d) Due to non-finalization of accounts of sister companies, reconciliation for the year 2015-16 wasonly pending. Now, reconciliation towards Trade Receivable for F.Y. 2015-16 has been carriedout.

5 GENERAL/OTHER

5.1 Regarding contingent liabilities, necessary disclosure made at note no. 33.

5.2 The matter is under Examination, necessary action shall be taken according to the decision inthis regard.

ANNEXURE II TO INDEPENDENT AUDITOR'S REPORT:-

Main Report:-

No comments

Qualified Opinion

a) Needful directions have been imparted in this regard. Further, internal audit of nine units has beencompleted and requisite efforts are being carried out to complete the Internal Audit for FY 2015-16during current Financial Year.

b) Needful directions have been imparted to concerned project/unit authorities to carry out required physicalverification of Fixed Asset at regular interval.

c) Needful directions have been imparted to concerned project/unit authorities in this regard. Further, Forcarrying out physical verification of stores & spares, committees has been constituted for KTPS, SSTPS,CTPP, kaTPP project and for remaining projects/units necessary steps shall be taken.

d) Due to non-finalization of accounts of sister companies, reconciliation for the year 2015-16 was onlypending. Now, efforts are being made to reconcile the same and necessary accounting adjustment shallbe carried out, if required. Now, reconciliation towards Trade Receivable for F.Y. 2015-16 has beencarried out.

e) & f) same has been adequately disclosed by way of relevant note.

g) Management does not agree with the Auditor's view as the only authorized official has the rights tooperate the Tally ERP-9 software for making required accounting entries.

However efforts are being made for strengthen the internal financial control system of the company and requisiteorders /circulars have been issued by the management as and when felt necessary.


22

Annexure-IV

Form: MR-3SECRETARIAL AUDIT REPORT

For the Financial Year ended on 31st March, 2016{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}

ToThe Members,Rajasthan Rajya Vidyut Utpadan Nigam LimitedCIN: U40102RJ2000SGC016484Vidyut Bhawan, Jyoti NagarJaipur-302005

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherenceto good corporate practices byRajasthan Rajya Vidyut Utpadan Nigam Limited(hereinafter called 'RVUN' /'theCompany'). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating thecorporate 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 recordsmaintained by the Company and also the information provided by the Company, its officers, agents and autho-rized representatives during the conduct of Secretarial Audit, We hereby report that in our opinion, the Companyhas, during the audit period covering the financial year ended on31st March, 2016complied with the statutoryprovisions listed hereunder and also that the Company has proper Board-processes and compliance mechanismin 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 theCompany for the financial year ended on 31st March, 2016 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;

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 extentof Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;

5. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of IndiaAct, 1992 ('SEBI Act'):-

(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)Regulations, 2011;

(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992/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;

(d) The Securities and Exchange Board of India (Employee Stock Option Scheme and EmployeeStock Purchase Scheme) Guidelines, 1999;

Kushawah Kundwani & Associates E-295-296, Speakwel House,Company Secretaries 2nd Floor, Lal Kothi Scheme,

Behind New Vidhan Sabha, Jaipur-15Tel: +91- 0141-4030077

E-mail : [email protected]


23

(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 basisof 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 Bondsin 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 subject to the following observations:

1. During the financial year, the composition of the Board is not in compliance with the provisions of theCompanies Act, 2013, due to non appointment of Independent Directors in the Board and the Companyhas not complied with provisions and regulations where Independent Directors are mandatorily required.

Wefurther report that, during the year under review:

The Board of Directors of the Company is not duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors, due to non-appointment of Independent Directors. The changesin the composition of the Board of Directors that took place during the period under review were carried out incompliance with the provisions of the Act.

Adequate notice has beengiven to all directors to schedule the Board Meetings, agenda and detailed notes onagenda are sent atleast seven days in advance, a system exists for seeking and obtaining further information andclarifications 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 theminutes.

We further report that there are adequate systems and processes in the company commensurate with the sizeand operations of the company to monitor and ensure compliance with applicable laws, rules, regulations andguidelines and the Company is advised to further strengthening the same.

For Kushawah Kundwani & AssociatesCompany Secretaries

ICSI-Code-P2015RJ038500FRN-13/287/2015

Ankit Singh Kushawah Partner

Date : 19thOctober, 2016 M. No.: ACS 31342Place: Jaipur C. P. No.:11834

(This report is to be read with our letter of even date which is annexed as Annexure-A which formsan integral part of this report.)


24

"Annexure-A"

ToThe Members,Rajasthan Rajya Vidyut Utpadan Nigam LimitedCIN: U40102RJ2000SGC016484Vidyut Bhawan, Jyoti NagarJaipur-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 respon-sibility 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 assuranceabout the correctness of the contents of the secretarial records. The verification was done on test basis toensure 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 ofthe Company.

5. The applicability of The SEBI (Prohibition of Insider Trading) Regulations, 2015 is in question, therefore,we are unable to comment on any compliance with the said regulations. We suggest the company toseekclarification from the SEBI in this regard.

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 isthe responsibility of management. Our examination was limited to the verification of procedures on testbasis.

8. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of theefficacy or effectiveness with which the management has conducted the affairs of the Company.


ICSI-Code-P2015RJ038500FRN-13/287/2015


Date:19thOctober, 2016 M. No.: ACS 31342Place: Jaipur C. P. No.:11834





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Management's response/ replies to the observations of Secretarial Auditors

Observation-1 - During the financial year, the composition of the Board is not in compliance with the provisionsof the Companies Act, 2013, due to non-appointment of Independent Directors in the Board and the Companyhas not complied with those provisions and regulations where Independent Directors are mandatorily required.

Reply - In terms of the Articles of Association of the Company, the State Government has the power to appoint allthe Directors on the Board of Directors of the Company. The Company has requested the State Government forappointment of Independent Directors on the Board of Directors of the Company so that compliance with provisionsof the Companies Act, 2013 could be made. The same is under process.


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Annexure-V

FORM NO. MGT-9EXTRACT OF ANNUAL RETURN

As on the financial year ended on 31st March 2016[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

2. Registration Date 19th June 2000

3. Name of the Company Rajasthan Rajya Vidyut Utpadan Nigam Limited

4. Category/Sub-Category of the company Category - Company Limited by SharesSub-Category- State Government Company

5. Address of the Registered office and R.C. Dave Marg, Vidyut Bhawan, Jyoti Nagar,contact details Jaipur- 302005

6. Whether Listed Company No

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

Karvy Computershare Pvt. Ltd.Karvy House, 46, Avenue 4, Street No. 1,Banjara Hills, Hyderabad- 500034Tele No.: +91 40 23312454Fax No. : +91 40 23311968Email : [email protected]: www.karvy.com

(RVUN has appointed the above mentionedRegistrar and Transfer agent for the issuance ofNon 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 bestated:-

S. Name and Description of main products/ NIC Code of the % to totalNo. services Product/ service turnover of the

company

1. Generation of Power 35102 100%


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3. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANY

S. Name and address of CIN/GLN Holding/ % of ApplicableNo. the company Subsidiary/ shares Section

Associate held

1. Giral Lignite Power U40109RJ2006SGC023356 Wholly 100% 2 (87)Limited, Vidyut Bhawan, ownedJanpath, Jyoti Nagar, subsidiaryJaipur-302005

2. Dholpur Gas Power U40109RJ2006SGC023352 Wholly 100% 2 (87)Limited, Vidyut Bhawan, ownedJanpath, Jyoti Nagar, subsidiaryJaipur-302005

3. Chhabra Power Limited U40109RJ2006SGC023353 Wholly 100% 2 (87)Vidyut Bhawan, Janpath, ownedJyoti Nagar, subsidiaryJaipur-302005

4. Parsa Kente Collieries U10200RJ2007PLC025173 Associate 26% 2 (6)Limited, 32,6th Floor, CompanyTriniti, Plot No. 05,Swage Farm, NewSanganer Road,Jaipur-302019

5. Rajasthan Collieries U10100RJ2012PLC038382 Associate 26% 2 (6)Limited, 32, 6th Floor, CompanyTriniti, Plot No. 05,Swage Farm, NewSanganer Road,Jaipur-302019

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

i. Category-wise Share Holding

CATEGORY OF No. of Shares held at No. of Shares held at % changeSHAREHOLDER the beginning of the year the end of the year during

the year

Demat Physical Total % of Demat Physical Total % oftotal total

shares shares

(A) PROMOTERS

(1) INDIAN

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

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

(c) State Government - 7288590100 7288590100 100 - 8731090000 8731090000 100 NIL


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(d) Bodies Corporate - - - - - - - - -

(e) Financial Institutions / Banks - - - - - - - - -

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

Sub-Total A(1) : - 7288590100 7288590100 100 - 8731090000 8731090000 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) - 7288590100 7288590100 100 - 8731090000 8731090000 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 - - - - - - - - -

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

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

(2) NON-INSTITUTIONS

(a) Bodies Corporate - - - - - - - - -

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

(i) Individuals holding nominalshare capital upto Rs.1 lakh - - - - - - - - -

(ii) Individuals holding nominal sharecapital 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) : - 7288590100 7288590100 100 - 8731090000 8731090000 100 NIL

(C) Shares held by custodians, - - - - - - - - -against GDRs ADRs

GRAND TOTAL (A+B+C) : - 7288590100 7288590100 100 - 8731090000 8731090000 100 NIL


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iii. Change in Promoters' Shareholding (please specify, if there is no change): No Change

1. Government of Shareholding at the Cumulative ShareholdingRajasthan beginning of the year during the year

No. of % of total shares No. of % of total sharesshares of the company shares of the company

At the beginning of the year 7288590100 100 100

Date wise Increase / Decrease 1. 1.Allotment of 29,84,99,900 equity shares of Rs.10/- each amounting toin Promoters Share Holding Rs.2,98,49,99,000/- on 24.04.2015.during the year specifying the 2. Allotment of 52,85,00,000 equity shares of Rs.10/- each amounting toreasons for increase/Decrease Rs.5,28,50,00,000/- on 18.12.2015.(e.g. allotment / Transfer / 3. Allotment of 15,85,50,000 equity shares of Rs.10/- each amounting toBonus/ Sweat equity etc.) Rs.1,58,55,00,000/- on 26.02.2016.

4. Allotment of 45,69,50,000 equity shares of Rs.10/- each amounting to Rs.4,56,95,00,000/- on 31.03.2016

At the end of the year 8731090000 100 100

ii. Shareholding of Promoters

Sr. Shareholder's Shareholding at the Shareholding at theNo. Name beginning of the year end of the year

No. of % of % of No. of % of % of % changeShares total Shares Shares total Shares in share

Shares Pledged/ Shares Pledged/ holdingof the encumbered of the encumbered during

company to total company to total theshares shares year

1 Government of 7288590093 100 NIL 8731089993 100 NIL NILRajasthan

2 Sh. Sanjay Malhotra 1 -- NIL 1 -- NIL NIL

3 Sh. N M Mathur 1 -- NIL 1 -- NIL NIL

4 Sh. Arun Kumar 1 -- NIL 1 -- NIL NILGupta

5 Sh. S.S. Meena NIL -- NIL 1 -- NIL NIL

6 Sh. M K Agarwal NIL -- NIL 1 -- NIL NIL

7 Sh P. S. Arya 1 -- NIL 1 -- NIL NIL

8 Sh. A.K.C. Bhandari 1 -- NIL 1 -- NIL NIL

9 Sh. P C Jain 1 -- NIL NIL -- NIL NIL

10. Sh. Uma Shankar 1 -- NIL NIL -- NIL NILTripathi

Total 7288590100 100 NIL 8731090000 100 NIL NIL


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

S. Shareholding at the Cumulative ShareholdingNo. beginning of the year during the year

For each of the Top 10 No. of % of total shares No. of % of total sharesShareholders shares of the company shares of the company

At the beginning of the year

Date wise Increase / Decreasein Promoters Share Holdingduring the year specifying thereasons for increase/Decrease(e.g. allotment / Transfer /Bonus/ Sweat equity etc.)

At the end of the year (or onthe date of separation, ifseparated during the year)

NIL

v. Shareholding of Directors and Key Managerial Personnel: NIL

S. Shareholding of each Shareholding at the Cumulative ShareholdingNo. director and each Key beginning of the year during the year

Managerial Personel


At the beginning of the year - - - -

Date wise Increase / Decrease - - - -in Promoters Share Holdingduring the year specifying thereasons for increase/Decrease(e.g. allotment / Transfer /Bonus/ Sweat equity etc.)

At the end of the year - - - -


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5. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due forpayment

Secured Loans Unsecured Deposits Totalexcluding deposits Loans Indebtedness

Indebtedness at the beginningof the year

i. Principal Amount 18065,82,59,218.00 3574,87,90,936.00 0.00 21640,70,50,154.00

ii. Interest due but not paid 0.00 0.00 0.00 0.00

iii. Interest accrued but not paid 415,38,19,271.00 18,76,75,448.00 0.00 434,14,94,719.00

Total (i+ii+iii) 18481,20,78,489.00 3593,64,66,384.00 0.00 22074,85,44,873.00

Change in Indebtedness duringthe financial year

Addition 4611,00,60,172.40 4225,00,00,000.00 0.00 8836,00,60,172.40

Reduction 882,31,50,315.00 2050,48,59,544.00 0.00 2932,80,09,859.00

Net Change 3728,69,09,857.40 2174,51,40,456.00 0.00 5903,20,50,313.40

Indebtedness at the end of theyear

i. Principal Amount 21794,51,69,075.40 5749,39,31,392.00 0.00 27543,91,00,467.40

ii. Interest due but not paid 0.00 0.00 0.00 0.00

iii. Interest accrued but not paid 482,78,33,266.00 7388,13,811.00 0.00 556,66,47,077.00

Total (i+ii+iii) 22277,30,02,341.40 5823,27,45,203.00 0.00 28100,57,47,544.40

6. Remuneration of Directors and Key Managerial Personnel:

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

S. No. Particulars of Remuneration Name of MD/WTD/Manager

Sh. N. M. Sh. S. S. Sh. M.K. Sh. Ashutosh Sh. P.C.Mathur Meena Agarwal Kr. Joshi Jain

1. Gross Salary 13,16,688 8,46,084 6,36,754 14,78,628 8,66,769

(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) 13,16,688 8,46,084 6,36,754 14,78,628 8,66,769

Ceiling as per the Act NA


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(B) Remuneration to Other Directors:

S.No Particulars of Remuneration Name of Directors TotalAmount

1. Independent Directors

(a) Fees for attending board committee - - - -meetings

(b) Commission - - - -

(c) Other, please specify - - - -

Total (1) - - - -

2. Other Non Executive Directors

(a) Fees for attending board committee - - - -meetings



Total (2) - - - -

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

Total Managerial Remuneration - - - -

Overall Ceiling as per the Act - - - -

(C) Remuneration to Key Managerial Personnel Other Than MD/ Manager/ WTD:

S.No. Particulars of Remuneration Name of Key Managerial Personnel

S G V S Subrahmanyam

1. Gross Salary 12,07,617

(a) Salary as per provisions contained in section17(1) of the Income Tax Act -

(b) Value of perquisites u/s 17(2) Income Tax Act, -1961

(c) Profits in lieu of salary under Section 17(3) -Income Tax Act, 1961

2. Stock Option -

3. Sweat Equity -

4. Commission

- As % of profit -

- Others (Variable Pay) -

5. Others, please specify -

Total (A) 12,07,617


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7. PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES

Type Section Brief Details of Penalty / Authority Appealof the Description Punishment/ [RD / NCLT made,

Companies Compounding fees / COURT] if anyAct imposed (give Details)

A. COMPANY

Penalty - - - - -

Punishment - - - - -

Compounding - - - - -

B. DIRECTORS

Penalty - - - - -



C. OTHER OFFICERS IN DEFAULT

Penalty - - - - -



For Rajasthan Rajya Vidyut Utpadan Nigam Limited

Sd/-(Nageen Kumar Kothari)

DIN-07649438Chairman & Managing Director

Place: JAIPUR Vidyut Bhawan, Jan Path, Jyoti NagarDate: 13.12.2016 Jaipur - 302005


34

Annexure-VI

Statement disclosing Related Party Transactions during thefinancial year 2015-16 in pursuance of provisions of the SEBI (Listing

Obligations and Disclosure Requirements) Regulations, 2015.

Sr. In the accounts of Particulars Disclosure of theNo. amounts at the year end

and the maximumamount of loanadvances/investmentsoutstanding during theyear (in Rs.)

1. Rajasthan Rajya Vidyut Loan to Giral Lignite Power 662,08,94,034/-Utpadan Nigam Ltd. Ltd. (Subsidiary Company)(Holding Company) Loan to Parsa Kente & Nil.

Collieries Ltd. and Rajasthan Collieries Ltd. (Associate Companies)

Loan to Firms/companies in Nil. which directors are interested

2. Giral Lignite Power Ltd. Loan From Rajasthan Rajya 662,08,94,034/-(Subsidiary Company) Vidyut Utpadan Nigam Ltd.

3. Rajasthan Rajya Vidyut Investments by the loanee in the Nil.Utpadan Nigam Ltd. shares of parent company and(Holding Company) subsidiary, when the company

has made a loan or advance inthe nature of Loan.


35

OM Agarwal & Company B-1, Subh Labh Appartment,Chartered Accountants D-37, Subhash Marg, C-SCHEME, JAIPUR-302001

Ph. : 0141-2361559 , +91-9829065332E-mail: [email protected]

INDEPENDENT AUDITOR'S REPORT

TO

THE MEMBERS OF

RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Rajasthan Rajya VidyutUtpadan Nigam Limited ("the Company"), which comprise the Balance Sheet as at March 31,2016, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors are responsible for the matters stated in section 134 (5) of TheCompanies Act 2013 ("the Act") with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position, financial performance and cash flows of theCompany in accordance with the accounting principles generally accepted in India, including theAccounting Standards referred specified under section 133 of the Act, read with Rule 7 of the Companies(Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and design,implementation and maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records, relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.

Auditor's Responsibility

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

We have taken into account the provisions of the Act, the accounting and auditing standards andmatters which are required to be included in the audit report under the provisions of the Act and theRules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10)of the Act. Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the Company's

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preparation of the financial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on whetherthe Company has in place an adequate internal financial control system over financial reporting andthe operating effectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by the Company'sDirectors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour qualified audit opinion.

Basis for Qualified Opinion

A. Refer Annexure I (which forms an integral part of this report) which consist of matter relates toqualification and reservations of which effects is not ascertainable on financial statements thatconstituted the basis for modifying our opinion.

B. No provision in respect of interest on delayed payment and certain expenditure has been madeby the company which is payable as per coal supplies agreement/ other arrangement in respectof following:

a) Refer to Note 34.2 (c) (ii) that Claim of SECL of ` 13,936.14 Lacs towards interest till31st March 2016 on delayed payment in respect of coal supplies. Out of this sum of` 8,392.05 Lacs relates to current financial year.

b) Refer to Note 34.3 (b) that Claim of PKCL of 3,985.57 Lacs towards interest till 31stMarch 2016 on delayed payment in respect of Mining Charges on coal supplies. Out ofthis sum of `3,640.23 Lacs relates to current financial year.

c) Refer to Note 34.4 that Claim of SRCPL of 63.04 Lacs towards interest till 31st March2016 on delayed payment in respect of Mining Charges on coal supplies. The wholeamount relates to current financial year.

d) Refer to Note 34.4 that Claim of SRCPL of 492.75 Lacs towards Take or Pay chargesfor track access till 31st March 2016 on short lifted quantity of coal. The whole amountrelates to current financial year.

e) Refer to Note No. 15.5 that transfer of Unit-2 (Stage-II) of Giral Lignite Thermal PowerStation of the company to Giral Lignite Power Limited (GLPL), (a wholly ownedsubsidiary of the company) of which effective date of transfer was decided 01st April2015 pursuant to the decision of Board of Directors of the company dated 20.10.2014,which approved sale consideration of ` 18,500 Lacs and consideration was proposedto be paid by GLPL through issue of equity shares.

The company has transferred the unit at net asset value of 2,978.62 Lacs instead of atapproved sale consideration of ` 18,500 Lacs and balance amount of ` 15,521.38Lacs incorrectly accounted as payable to GLPL, since GLPL has issued equity capitalof 18,500 Lacs to the company, which is not in accordance with the scheme of transferapproved, consequently gain on transfer of the unit of ` 15,521.38 Lacs has not beenrecognized and amount payable to GLPL 15,521.38 Lacs was incorrectly recognized(which are adjusted in the books with the short term loan and advance to GLPL ),which resulted in increase in loss for the year by 15,521.38 Lacs and decrease in shortterm loans and advances.

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Effect of the above (a) to (e) results in following financial impact on financial statements:

(` In Lacs)

Particulars Before Increase/ AfterQualification (Decrease) Qualification

Generation & Other Direct 752,297.14 12,588.07 764,885.21Expenses

Profit/(Loss) for the year (93,896.22) 2,933.31 (90,962.91)

Reserve & Surplus (495,313.54) 2,933.31 (492,380.23)

Current Liabilities 783,004.05 12,588.07 795,592.12

Short Term Loans & Advances 41,221.18 (15,521.38) 56,742.56

Contingent Liabilities under 38,381.51 (12,588.07) 25,793.44Claim not acknowledge as debt

QUALIFIED OPINION

In our opinion and to the best of our information and according to the explanations given to us, exceptfor the effects of the matters described in Para A & B of Basis for Qualified Opinion paragraph, thefinancial statements give the information required by the Companies Act, in the matter so required andgive a true and fair view in conformity with the accounting principles generally accepted in India:

(i) in the case of Balance Sheet, of the state of affairs of the Company as on 31st March, 2016;

(ii) in the case of Statement of Profit and Loss, of the Loss for the year ended on that date; and

(iii) in the case of the Cash Flow Statement, of the Cash Flows for the year ended on that date.

EMPHASIS OF MATTER

1. Your attention is drawn to:

a) Note 11 that Sundry Liabilities under head Other Current Liabilities includes AdmittedAccount i.e. Unexpired Cheque issued but not presented for payment amounting to` 2,657.47 Lacs which results in overstatement of cash & cash equivalents and OtherCurrent Liabilities with the same amount.

b) Note 13.7 that Company had acquired 557.14 Bigha of land for Dholpur Gas PowerProject from "M/s RPG Enterprise" through Govt. of Rajasthan. Out of which, 200.01Bigha of Land is not yet allotted in favour of RRVUNL as it is appearing as forest landin the revenue records. Also, no title deed is executed in favour of Company.

c) Note No. 15.6, 22.2 & 23.4 that company has non current investment in GLPLamounting to ` 37,005 Lacs, Short term loans and Advance to GLPL amounting to` 11,603.59 Lacs and Receivable from GLPL amounting to ` 54,605.34 Lacs. Networth of subsidiary namely GLPL as per latest audited financial statements has beenfully eroded, however, keeping in view of long term in nature, no provision has beentaken in financial statements.

d) Note 18.3 that the Company has taken certain assets on lease. Out of these assets, the

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ownership of leased assets of the following entities have not been transferred in thename of the Company after expiry of lease agreements due to pending litigation incourt or in absence of power of attorney. The security deposit equivalent to residualvalue 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 ResidualValue

1 M/s ICICI Ltd 8,400.00 84.00

2 M/s Indo Nissan Oxo Chemical Ltd. 623.34 155.83

Total 9,023.34 239.83

e) Note 24.1 that Revenue from sale of power consist of late payment surcharge towardsdelayed payment by DISCOMs amounting to ` 32,184.08 Lacs which requires to beaccounted as "Other Income" instead of "Revenue from Sale of Power" as a consistentpractice.

f) Note 34.2 (c) (i) that at KTPS, SSTPS and DCCPP, a disputed liability of ` 4,398.07Lacs, ` 307 Lacs and ` 10.79 Lacs respectively on account of water cess claimed byRajasthan State Pollution Control Board (RSPCB) for which appeal has been filed beforeChairman, RSPCB.

Due to pending outcome of litigations, no impact of the said disputed liability has beentaken in Financial Statements.

g) Note 34.2 (c) (iv) that the Additional Collector (Stamps) Jaipur, has raised the demandof stamp duty & interest of ` 1,580 lacs on finalization of appeal against matter of levyof stamp duty on purchase of plant & machinery and loan documents executed. TheCompany has filed the revised appeal before Chief Controlling Authority (Stamps),Ajmer against the said demand by depositing the 25% amount of demand i.e. ` 395lacs.

Due to pending outcome of litigations, no impact of the said disputed liability has beentaken in Financial Statements.

h) Note 34.2 (C) (vi) & 34.3 in respect of claim raised by M/s Parsa Kente Collieries Limited(PKCL) towards fixed cost amounting to ` 7,800 Lacs and towards Price Escalationamounting to ` 6,100 Lacs for which no provision has been made in the financialstatement being subjudice.

i) Note 34.5 that change in accounting policy in respect of Leave Encashment from actualpayment to adoption of actuarial valuation in line of AS-15 "Employee Benefit" resultedin current year employee cost increase by ` 9,579.35 Lacs (including ` 8,414.50 Lacstill 31.03.2015). Similarly Liability of Long term Provision and Short Term Provisionincrease by ` 8,646.79 Lacs and ` 932.55 Lacs respectively.

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Our opinion is not qualified in respect of above matters.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Comapanies (Auditor's Report) Order, 2016 ("the order") issued by theGovernment of India in terms of sub section (11) of section 143 of the Act, and on the basis ofsuch checks of the books and records of the company as we considered appropriate andaccording to the information and explanation given to us, we give in the Annexure-II a statementon the matters specified in the paragraph 3 and 4 of the said order.

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

a) We have sought and, except for the possible effect of the matters described in basis forQualified Opinion paragraph, obtained all the information and explanations which tothe 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 QualifiedOpinion paragraph, proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of accounts.

d) Except for the possible effects of the matters reported in Basis of Qualified Opinionparagraph, In our opinion, the aforesaid standalone financial statements comply withthe Accounting Standards specified under Section 133 of the Act, read with Rule 7 ofThe Companies (Accounts) Rules, 2013. The possible effects of the matters asreported in Basis of Qualified Opinion which are summarized hereunder:-

AS-2: Valuation of Inventories;

AS-28: Impairment of Assets;

e) Being a Government Company, pursuant to the notification No. GSR 463(E) dated 5thJune 2015 issued by Ministry of Corporate Affairs, Government of India, Provision ofsub-section (2) of section 164 of the Companies Act, 2013, are not applicable to thecompany.

f) With respect to the adequacy of the internal financial controls over financial reportingof the company and the operating effectiveness of such controls, refer to our separatereport in Annexure-III.

g) With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and tothe 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 itsfinancial position in its financial statements Refer Note 34.2, 34.3 & 34.4 to thefinancial statements.


40

II. The Company has made provision, as required under the applicable law oraccounting standards, for material foreseeable losses, if any, on long-termcontracts including derivative contracts except as reported in Basis of QualifiedOpinion.

III. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.

3. We are enclosing our report in terms of section 143 (5) of the act, on the basis of such bookschecks of the books and records of the company as we considered appropriate and accordingto the information and explanation given to us, in the Annexure- IV on the direction and sub-directions issued by The Comptroller and Auditor General of India.

For OM Agarwal & CompanyChartered Accountants

FRN 000971C

(Kailash Chand Gupta)Place : Jaipur PartnerDated : September 7, 2016 M.No.-072936


41


(Referred to in "Basis for Qualified Opinion paragraph in the Independent Auditor'sReport of even date on account of RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM

LIMITED for the year ended on 31st March, 2016)

1. ACCOUNTING OF CERTAIN ITEMS ON CASH BASIS

Refer to Note 1.13 "Significant Accounting Policies", There are certain items of Income and Expenditurewhich are accounted on cash basis instead of Accrual basis which is not in accordance with fundamentalaccounting assumption of AS-1 "Disclosure of Accounting Policies" issued by ICAI. The impact of thesame is not ascertainable on financial statement.

2. IMPAIRMENT OF ASSETS

Refer to Note 34.12, the company has disclosed that impairment assessment has been carried out inrespect of its plant (cash generating units) and there is no indicator of any impairment of asset. Theabove fact is disclosed based on the plant's head certification which is not supported by any detailedworking of impairment study. Therefore, In absence of detail study of impairment, the effect of noncompliance of accounting standard and its effect on the financial statement is not ascertainable.

3. FIXED ASSETS, CAPITAL WORK IN PROGRESS (CWIP) AND DEPRECIATION

3.1 The Company at some units, is not having proper work wise/age wise/scheme wise details ofCapital Work In Progress which are mostly pertaining to old carried over balances of CWIP andthis includes material at site (usable and unusable) of which current status and existence of thesame not provided. Substantial delay in recognition of CWIP to Fixed Assets at respective projects/units has been observed due to non issuance of Completion Certificate/ Report. The impact ofthe same to the extent of such non recognition (Capital/Revenue) in the financial statement isnot ascertainable.

3.2 Due to lack of proper internal control related to the capital works in progress and in absence ofproper reports of work completion and reconciliation of material issued and consumed, theinherent risk of "Fraud/Misuse" cannot be denied.

3.3 Long term Loans and Advances disclosed in Note No. 17 includes Advance to Suppliers &Contractors for Capital goods and Other Long term liabilities disclosed in Note No. 7 includesMisc. Deposits- Other consist of certain old and carried forward balances which are pending foradjustments and reconciliation. The Effect of the same on Financial Statements is notascertainable.

Considering the para 3.1 to 3.3 above, we are not able to comment about correctness of CWIP,Fixed assets and consequential effect on Depreciation and effect of the above on financialstatements.

4. LONG OUTSTANDING/UNRECONCILED BALANCES

4.1 DEBIT BALANCES

a) The Company is having Long Outstanding Debit Balances, which have not beenreconciled since long. Also, many credit balances are still lying in these account heads.In absence of proper information, explanations and details, we are unable to quantifythe same.

b) Balances with staff, Earnest Money Deposits, Security Deposits, Misc Deposits held,Current Liabilities and Provision, Advances to Contractors/Suppliers, etc. are subject toconfirmation and have not been fully reconciled. The balances with other Companiesof Board such as RRVPNL, JVVNL, AVVNL and JDVVNL are not reconciled for theyear 2015-16. As explained to us the same are under process. The effect of the same onthe Financial Statements is not ascertainable.

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4.2 CREDIT BALANCES

a) The Company is having Long Outstanding Credit Balances, which have not beenreconciled since long. Also, some debit balances are lying in these account heads. Inabsence of proper information, explanation and details, we are unable to quantify thesame.

b) The Other Current Liabilities include ` 6.23 Lacs payable to M/s Indo Nissan on account oflease/rent expenses lying unpaid/unadjusted. This issue was also raised by C & AG in itsSupplementary Audit for the F.Y. 2010-11. We concur with the view of C & AG that the sameshould be written back in the books of Company. However, the Company has not fully adjustedsuch liability in F.Y. 2015-16 also.

c) Company's Liabilities for State Sales Tax, TDS, are subject to reconciliation.

d) The Company has not done reconciliation of Inter Company Accounts with other successorentities of erstwhile RSEB for period 2015-16. Financial impact, if any cannot be ascertainedand therefore the amount by which assets/liabilities/profit /loss, understated/overstated cannotbe quantified.

5. GENERAL/OTHER

5.1 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 byrespective departments of the company. The financial impact of the same which may arisecannot be reasonably quantified.

5.2 The payment against supply of Wash Coal at KTPS, Kota and STPS, Surargarh is made on thebasis of actual receipt of Coal. During the course of verification of details pertaining for WashCoal, cases have been observed where Actual Quantity of Wash Coal is in Excess of thatmentioned in Railway Receipt (RR). This has resulted into over payment to coal washeries beingpayment based upon the quantum of Actual coal received. The washeries are further benefitteddue to additional consideration of Normal Loss @.8% on standard basis irrespective of ActualWeight being in excess of Railway Receipt or Actual transit loss, as the case may be. The samecannot be reasonably quantified in absence of complete and detailed information.

Considering para referred above and in absence of complete details, impact on assets/liabilities/profitand loss cannot be ascertained.


FRN 000971C


Standalone


43

ANNEXURE II TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements" in the Independent Auditor's Report of even date on account of

RAJASTHAN RAJYA VIDYUTUTPADAN NIGAM LIMITEDfor the year ended on 31st March, 2016)

(i) (a) The Company has maintained Fixed Asset Register for the year 2015-16 which does not containsfull particulars including sufficient description of the assets, quantitative details and location ofasset.

(b) There is no system of physical verification of fixed asset at regular interval. In absence of physicalverification report, we are not in a position to comment on the discrepancies, if any in relation tothe physical existence of the assets.

(c) According to the information & explanation given to us and on the basis of our examination ofthe records of the company, the title deed of immovable properties are held in the name ofcompany, except title deeds of following Land not made available to us. Hence, we are not inposition to comment on title of following:

Particulars Location Land Area Amount in(In Acres) ` Lacs

Freehold STPS 825.73 385.98

Freehold KaTPP 54.31 21.38

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 information & explanation given to us, there are no physical verification report of inventoriesavailable. In absence of physical verification report, we are not in position on comment on discrepancies,if any in relation to the physical inventory.

(iii) As informed to us, the Company has neither taken nor granted any loans, secured or unsecured from/toCompanies, Firm or other parties listed in the register maintained under section 189 of the CompaniesAct, 2013. Therefore, the provisions of clause (iii)(a), (iii)(b), (iii)(c) of the order are not applicable to theCompany.

(iv) In our opinion and according to the information and explanation given to us, the company has compliedwith the provision of section 185 and section 186 of the Act, with respect to the loans, investment andguarantees.

(v) According to the information and explanation given to us, the Company has not accepted any depositsfrom the public.

(vi) As per information given to us, Cost Records & Cost Audit under section 148 (1) (d) of the CompaniesAct, 2013, for the Financial Year 2015-16 are under the process of preparation but not yet finalized. 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 ProvidentFund, Income Tax, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, ExciseDuty, Cess and other material statutory dues, to the extent applicable to it, have generally beenregularly deposited with the appropriate authorities and there are no undisputed dues outstandingas on 31st March 2016 for a period of more than six months from the date they become payable.

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(b) According to the information and explanations given to us, the disputed statutory dues thathave not been deposited on account of matters pending before appropriate authorities aredetailed below:

(` in Lacs)

S. No. Nature of Taxation Forum where dispute is pending Amount

1. VAT Matters Rajasthan Tax Board, Ajmer 866.66

2. Stamp Duty Revenue Board, Rajasthan 1,580

3. Water Cess Rajasthan Pollution Control Board 4,715.86

(viii) According to the information and explanation given to us, the Company has not defaulted in repaymentof dues to any financial institution/ bank or debenture holders.

(ix) The company has not raised any money by way of Initial Public Offer or Further Public Offer. Companyis maintaining records for availment and utilization of loans. A perusal of these records reveals thatprima-facie loans are utilized for the purpose they have been taken. However, we have not made adetailed examination of such utilizations as direct or proximate linking of sources and utilizations of loansare not available as they are centrally pooled, remains partly unutilized.

(x) According to the information and explanations given to us, no material fraud on or by the Company byits officers or employees has been noticed or reported during the course of our audit.

(xi) According to the information and explanation given to us, the provision of section 197 to the act is notapplicable to the company, being a government company vide notification no. GSR 463E dated 05thJune 2015.

(xii) In our opinion and according to the information and explanations given to us, the Company is not aNidhi Company. Accordingly, Clause xii of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on our examination of the recordsof the Company, transactions with the related parties are in compliance with the Sections 177 and 188of the Companies Act, 2013. Details of transactions with the related parties have been disclosed in thefinancial statements as required by applicable Accounting Standard.

(xiv) According to the information and explanations give to us and based on our examination of the records ofthe Company, the Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year. Accordingly, Clause xiv of the Order is not applicable.

(xv) According to the information and explanations given to us and based on our examination of the recordsof the Company, the Company has not entered into non-cash transactions with directors or personsconnected with them as per section 192 of Companies Act, 2013. Accordingly, clause xv of the Order isnot applicable.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.


FRN 000971C


Standalone


45 Standalone

ANNEXURE III TO THE INDEPENDENT AUDITORS' REPORT

(REFERRED TO IN PARAGRAPH 2(f) under "Report on Other Legal and RegulatoryRequirements" in the Independent Auditor's Report of even date on account of

RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITEDfor the year ended on 31st March, 2016)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act, 2013 ("the Act")

We were engaged to audit the internal financial controls over financial reporting of Rajasthan Rajya VidyutUtpadan Nigam Limited ("the Company"), as of March 31, 2016 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based onthe internal control over financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India (the "ICAI"). Theseresponsibilities include the design, implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its business, including adherence tocompany's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracyand completeness of the accounting records, and the timely preparation of reliable financial information, asrequired under the Companies Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reportingbased on our audit conducted in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing, to the extent applicable to an audit ofInternal Financial Controls, both issued by ICAI.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financialcontrols system over financial reporting and their operating effectiveness. Our audit of internal financial controlsover 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 effectivenessof internal control based on the assessed risk. The procedures selected depend on the auditor's judgement,including the assessment of the risks of material misstatement of the financial statements, whether due to fraud orerror.

We believe that the audit evidence we have obtained is suffiecient and appropriate to provide a basis for ourqualified audit opinion on the company's internal financial control system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactionsand dispositions of the assets of the company;

2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles, and that receipts and expendituresof the company are being made only in accordance with authorizations of management and directors ofthe 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.


46 Standalone

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibilityof collusion or improper management override of controls, material misstatements due to error or fraud mayoccur and not be detected. Also, projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial control over financial reporting maybecome inadequate because of changes in conditions, or that the degree of compliance with the policies orprocedures may deteriorate.

Qualified Opinion

According to the information and explanation given to us and based on our audit, the following material weaknesseshave been identified as at March 31, 2016:

a) According to information and explanation given to us, Internal Audit of the company by company'sinternal audit wing has not been carried out for the year under audit.

b) According to information and explanation given to us, there is no system of physical verification of fixedasset at regular interval. In absence of physical verification report, we are not in a position to commenton the discrepancies, if any in relation to the physical existence of the assets.

c) As per information & explanation given to us, there are no physical verification report of inventoriesavailable. In absence of physical verification report, we are not in position on 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 currentyear.

e) As per information & explanation given to us, there are certain issue with PKCL (Joint Venture) asreported in Basis of Qualified Opinion paragraph and Emphasis of Matter paragraph which are pendingdue to dispute which shows lack of internal control.

f) As per information & explanation given to us, there are certain long outstanding debit and credit balancesstanding 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 toconfirmation and reconciliation. This show lack of internal control.

g) There is no authentication and approval requirement in accounting software namely tally is enablewhich shows lack of internal control in accounting.

A material weakness is a deficiency, or a combination of deficiencies, in internal financial control over financialreporting; such that there is a reasonable possibly that a material statement of the company's annual or interimfinancial 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 ofthe objectives of the control criteria, the company has maintained, in all material respects, adequate internalfinancial controls over financial reporting and such internal financial control over financial reporting were operatingeffectively as of 31st March 2016 based on internal control over financial reporting criteria established by thecompany considering the essential components of internal control stated in the guidance note on audit of internalfinancial control over financial reporting issued by ICAI.

We have considered the material weakness identified and reported above in determining nature, timing andextent of audit test applied in our audit of the March 31st 2016 financial statements of the company and thesematerial weakness do not affect our opinion on the financial statements of the company.


FRN 000971C



47

SI. No. General Directions Remarks

1. Whether the company has clear The company is having clear title/lease deeds for freehold andtitle/lease deeds for freehold and leasehold land except 925.41 acres of freehold land valuingleasehold respectively? If not, ` 554.06 Lacs and 51.01 acres of leasehold land valuingplease state the area of freehold ` 6.26 lacs.and leasehold land for which title/lease deeds are not available?

2. Whether there are any cases of According to information and explanation given to us, therewaiver/write off of debts/loans/ are no cases of waiver/write off of debts/loans/interest etc.interest etc. If yes, the reasonsthere for and the amountinvolved.

3. Whether proper records are According to information and explanation given to us, propermaintained for inventories lying records are being maintained for inventories lying with thewith the third parties and assets third parties. Further no instance of gift of assets fromreceived as gift from govt. or government and other authorities have been observed.other authorities.

ANNEXURE IV TO INDEPENDENT AUDITOR'S REPORT

(REFERRED TO IN PARAGRAPH 3 UNDER "REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS" IN THE INDEPENDENT AUDITOR'S

REPORT OF EVEN DATE ON ACCOUNT OFRAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED

FOR THE YEAR ENDED ON 31ST MARCH, 2016)

PART-A


Ph. : 0141-2361559, +91-9829065332E-mail: [email protected]

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SI. No. Specific Direction (Sub Direction) Remarks

1. In the cases of Thermal Power Projects, According to information and explanation given tocompliance of the various Pollution Control us that the company followed the compliance laidAct and the impact thereof including utilization under Pollution Control Act and deposited feesand disposal of ash and the policy of the regularly. Further the company is following thecompany in this regard, may be checked and guidelines of MoEF in this regard and the policycommented upon. adheres with the guidelines issued. Further No

separate bank account is maintained for Unutilizedamount of fly ash utilization fund.

2. Has the company entered into revenue The company has entered into Joint venture withsharing agreement with private parties for Adani Enterprises Limited for extraction andextraction of coal at pitheads and it supply of coal from its own captive coal mines toadequately protect the financial interest of its coal projects. Further according to informationthe company? and explanation given to us, the financial interest

of the company are adequately protected.

3. Does the company have a proper system of The company has the system of reconciliation ofreconciliation of quantity of coal ordered and quality/quantity of coal ordered through storereceived and whether grade of coal/moisture receipts no. and check the grade of coal received.and demurrage etc. are properly recorded in Various claims in this regards lodged to SECL butthe books of accounts? as per accounting policy of the company, such

claims are not recorded in books of accounts.Demurrage have been booked in the books ofaccount.


FRN 000971C


PART-B

Standalone


Ph. : 0141-2361559 :+91-9829065332E-mail: [email protected]


49

EQUITY AND LIABILITIES

Shareholders’ funds

Share Capital 1 87,31,09,00,000 72,88,59,01,000

Reserves & Surplus 2 (49,53,13,54,175) (40,14,17,31,589)

Share application money pending allotment 3 - 2,98,49,99,000

Fly Ash Utilisation Fund 4 73,95,98,963 27,29,94,121

Deferred Revenue on account of Advance 5 6,65,31,95,159 6,69,71,13,159against Depreciation

Non-current liabilities

Long-Term Borrowings 6 2,43,97,91,10,854 2,01,36,01,74,552

Other Long Term Liabilities 7 10,13,36,31,699 5,46,44,58,220

Long Term Provisions 8 86,46,79,259 -

Current liabilities

Short-Term Borrowings 9 7,68,74,18,149 7,37,73,96,725

Trade Payables 10 17,58,99,90,737 14,84,97,63,880

Other Current Liabilities 11 50,26,46,51,404 34,67,26,82,922

Short-Term Provisions 12 2,75,83,46,922 2,47,36,14,709

3,78,45,01,68,971 3,08,89,73,66,699

ASSETS

Non-current assets

Fixed Assets

- Tangible Assets 13 1,87,38,83,99,061 1,58,59,98,23,434

- Intangible Assets 13 61,36,29,865 -

- Capital Work-In-Progress 14 92,96,46,60,450 80,48,69,32,942

Non-Current Investments 15 3,70,15,00,002 1,85,20,00,002

Deferred Tax Assets (Net) 16 - -

CIN - U40102RJ2000SGC016484BALANCE SHEET AS AT 31st MARCH, 2016

(Amount in `)

Particulars Note As at As atNo. 31st March, 2016 31st March, 2015

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50

Long-Term Loans and Advances 17 9,87,15,08,972 13,28,71,88,693

Other Non-Current Assets 18 2,04,18,77,358 2,14,50,91,410

Current Assets

Inventories 19 8,57,19,38,149 10,92,06,24,354

Trade Receivables 20 56,78,23,52,620 27,83,78,68,777

Cash and Cash equivalents 21 1,91,51,32,030 1,14,10,71,818

Short-Term Loans and Advances 22 4,12,21,18,230 4,84,26,57,516

Other Current Assets 23 10,47,70,52,234 7,78,41,07,753

3,78,45,01,68,971 3,08,89,73,66,699

SIGNIFICANT ACCOUNTING POLICIESAND NOTES ON FINANCIAL STATEMENT I & II

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

(N.M. MATHUR) (Dr. M.L. GUPTA) For OM AGARWAL & CO.Chairman & Managing CFO & Director (Finance) Chartered Accountants

Director DIN-07580613 FRN 000971CDIN-03033375

(A.K.C. BHANDARI) (S.G.V.S. SUBRAHMANYAM) (Kailash Chand Gupta)Chief Controller of Accounts Company Secretary Partner

M.No. 3962 M.No. 072936

Place : JaipurDate : 7th September, 2016

(Amount in `)


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Revenue:Revenue From Operations 24 99,62,05,63,945 90,80,64,64,051Other Income 25 38,33,85,967 29,71,45,421Total Revenue 1,00,00,39,49,912 91,10,36,09,472Expenses:Generation & Other Direct Expenses 26 75,22,97,14,461 88,54,19,46,008Repairs & Maintenance 27 3,05,26,67,975 2,81,28,24,316Employee Benefits Expense 28 4,10,80,04,433 2,23,16,80,577Finance Costs 29 19,79,74,48,476 13,93,01,06,281Depreciation and Amortization Expense 30 10,55,89,19,965 9,04,76,77,743Administrative and Other Expenses 31 74,60,05,489 72,97,13,749Total Expenses 1,13,49,27,60,799 1,17,29,39,48,674Profit / (Loss) Before Exceptional Items and Tax (13,48,88,10,887) (26,19,03,39,202)Exceptional Items :Income Pursuant to RERC Order (Refer Note No. 34.18) 94,79,36,501 -Profit / (Loss) Before Prior Period Items and Tax (12,54,08,74,386) (26,19,03,39,202)Prior Period Income/(Expenses) 32 3,15,12,51,800 (17,88,87,140)Profit / (Loss) Before Tax (9,38,96,22,586) (26,36,92,26,342)Tax Expense:Current Tax - -Income Tax (Earlier year tax) - -Deferred Tax - -PROFIT / (LOSS) FOR THE YEAR (9,38,96,22,586) (26,36,92,26,342)Earnings Per Equity Share 33Equity Share of Par Value 10/- Each(1) Basic & Diluted (1.21) (3.74)SIGNIFICANT ACCOUNTING POLICIESAND NOTES ON FINANCIAL STATEMENTS I & IIFor and on behalf of the Board of Directors As per our separate report of even date




M.No. 3962 M.No. 072936Place : JaipurDate : 7th September, 2016

CIN - U40102RJ2000SGC016484STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH, 2016

(Amount in `)

Particulars Note For the year For the yearNo. ended ended

31st March, 2016 31st March, 2015

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CIN - U40102RJ2000SGC016484CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2016

PARTICULARS 2015-16 2014-15

Details Amount (in `) Details Amount (in `)

A. Cash Flow from Operating Activity

Net profit before tax as per Statement of Profit & Loss (9,38,96,22,586) (26,36,92,26,342)

Adjusted for:

Transfer to Capital Reserve - -

Depreciation 9,64,02,82,098 9,10,74,94,140

Rebate received from PFC (19,00,25,927) (19,66,61,761)

Interest Expenditure 19,92,31,83,126 13,83,16,69,020

Increase in Fly Ash Utilisation Fund 46,66,04,842 27,29,94,121

Deferred Revenue on account of advance against (4,39,18,000) (12,47,68,254)depreciation

Deferred Revenue Expenditure - W/off 65,98,928 1,96,92,701

Interest Income from Investments/Deposits (8,04,13,445) 29,72,23,11,622 (1,75,42,067) 22,89,28,77,900

Operating Profit before Working Capital Changes 20,33,26,89,037 (3,47,63,48,442)

Adjusted for:

(Increase)/Decrease in Deferred Revenue Expenditure (17,00,35,558) (40,76,63,523)

(Increase)/Decrease Other non current assets 17,29,87,352 18,81,15,306

(Increase)/Decrease in Inventory 2,34,86,86,205 (5,39,62,37,379)

(Increase)/Decrease Trade receivable (28,94,44,83,843) (17,93,22,95,380)

(Increase)/Decrease Short term Loans and Advances 72,05,39,286 2,96,72,70,607

(Increase)/Decrease in Other Current Assets (2,47,34,20,478) (2,55,78,26,009)

Increase/(Decrease) in Other Long term Liabilities 4,66,91,73,479 (68,74,64,901)

Increase/(Decrease) in Trade Payables 2,74,02,26,857 11,03,32,64,671

Increase/(Decrease) in Provisions 1,14,94,11,472 (4,51,30,699)

Increase/(Decrease) in Other Current Liabilities 4,09,72,31,890 (15,68,96,83,337) 1,48,98,82,592 (11,34,80,84,715)

Cash Generated from Operations 4,64,30,05,699 (14,82,44,33,157)

Taxes paid - -

Net Cash from Operating Activity (A) 4,64,30,05,699 (14,82,44,33,157)

B. Cash Flow from Investing Activity

Purchase of fixed assets (51,52,02,15,098) (44,70,24,38,214)

Advance against purchase of fixed assets 3,41,56,79,721 4,12,40,25,635

Investment made in subsidiary companies (1,85,00,00,000) (1,85,00,00,000)

Income from Investments/Deposits (4,49,47,227) 2,65,49,320

Net Cash Flow from Investing Activity(B) (49,99,94,82,604) (42,40,18,63,259)

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C. Cash Flow from Financing Activity

Proceeds from issuance of share capital and share 11,44,00,00,000 8,81,50,00,000Application Money

Proceeds from Borrowing 87,62,26,63,447 78,90,21,32,026

Repayments of Borrowing (34,29,12,28,529) (18,09,81,48,590)

Rebate Received From PFC 19,00,25,927 19,66,61,761

Interest Paid (18,83,09,23,727) (12,94,65,28,998)

Net cash used in Financing Activity (C) 46,13,05,37,118 56,86,91,16,199

Net increase/decrease in cash and cash 77,40,60,212 (35,71,80,217)equivalents (A+B+C)

Cash and cash equivalents at the beginning of 1,14,10,71,818 1,49,82,52,035the year

Cash and cash equivalents at the close of the year 1,91,51,32,030 1,14,10,71,818

Cash and Cash Equivalent includes:- (Refer Note No. 21)

Particulars As at 31.03.2016 As at 31.03.2015

Cash in hand 5,73,033 5,88,164

Money in transit 25,05,015 34,19,276

Balance With Scheduled Bank 1,21,02,24,691 1,13,70,06,359

Escrow Account with UBI Kolkata 24,95,08,767 -

SBBJ CC Account 45,22,62,506 -

Balance in PD Account 30,000 30,000

Cash imprest with staff 28,018 28,019

Total 1,91,51,32,030 1,14,10,71,818

Note: Cash and Cash equivalents as at 31.03.2016 and 31.03.2015 include restricted Bank Balances of` 31,42,77,958/- and 11,22,15,743/- respectively. These restrictions are primarily on account of cash and bankbalances held as margin money deposits against bank guarantee and Letter of Credit issued.





M.No. 3962 M.No. 072936


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54

I. SIGNIFICANT ACCOUNTING POLICIES1.1 General

(a) The financial statements of the Company have been prepared under historical cost conventionand in accordance with Accounting Standards specified under section 133 of the CompaniesAct, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014, provisions of theCompanies Act, 2013, applicable provisions of the Companies Act, 1956, the provisions ofElectricity Act, 2003, to the extent applicable and generally accepted accounting principles inIndia as adopted consistently by the Company.

(b) The Company generally follows Mercantile System of Accounting and recognizes significantitems of income and expenditure on accrual basis except those with significant uncertainties andprice variation claims which are accounted for on cash basis.

(c) The preparation of financial statements in conformity with generally accepted accountingprinciples requires the management to make estimates and assumptions that affect the incomeand expenditure during the reporting period and assets and liabilities including contingent liabilitiesas on the date of financial statements. Although such estimates and assumptions are made on areasonable and prudent basis taking into account all available information, actual results coulddiffer from these estimates and assumptions and such differences are recognised in the period inwhich the results are crystallized.

1.2 Fixed Assets and Depreciation

(a) The fixed assets are stated at cost, after reducing accumulated depreciation. All costs includingfinancing costs till the commencement of the commercial production attributable to acquisition/construction of fixed assets are capitalized.

(b) Expenditure on renovation and modernisation of fixed assets resulting in increased life and/orefficiency of an existing asset is added to the cost of related assets after confirming to the normsof the Regulator.

(c) Since the Financial year 2014-15, depreciation is being charged on straight line method followingthe rates and methodology notified by the Rajasthan Electricity Regulatory Commission (Termsand Conditions for Determination of Tariff) Regulations, 2014 generally in accordance with theprovision of Schedule II of the Companies Act, 2013.

(d) In view of terms of agreement entered into by erstwhile RSEB with lessors, no depreciation ischarged on assets sold and leased back in the year 1994-95, 1995-96, 1996-97 and 1997-98,pertaining to generating stations.

(e) Depreciation on additions to/deductions from fixed assets during the year is charged on pro-ratabasis from/up to the day on in which the asset is available for use/disposal.

(f) Pending receipt of the completion reports in respect of capital works, the works completed aretransferred to fixed assets on the basis of the statements approved by the head of the project.

(g) Where the cost of depreciable assets has undergone a change during the year due to increase/decrease in long term liabilities on account of exchange fluctuation, price adjustment, change induties or similar factors, the unamortised balance of such asset is depreciated retrospectivelyfrom the commencement of the unit based on the applicable rates of depreciation.

(h) Leasehold Land is amortised over the period of the lease.

(i) In the case of assets put to use, where final settlement of bills with contractors is yet to beeffected, capitalization is done on provisional basis subject to necessary adjustment in the yearof final settlement.

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(j) Mining rights are treated as intangible assets and all related cost thereof are amortized on thebasis of actual annual quantity delivered to the total estimated mineable reserves as per approvedmines closure plan.

1.3 Fly Ash Utilization Fund

(a) Sale of fly ash are accounted for based on the rates agreed with the customers. Amountscollected are kept under separate account head “Fly Ash Utilization Fund” in accordance withthe gazette notification dated 3rd November 2009 issued by Ministry of Environment and Forests(MoEF), Government of India.

(b) Income earned on this fund, if any, is also credited to the fund.

(c) Expenses incurred by the company in relation to utilization of fly ash are charged to the “Fly AshUtilization Fund”.

1.4 Investments

(a) Long term investments are carried at cost less provision, if any, for permanent diminution invalue of such investments.

(b) Current investments are carried at lower of cost and fair value.

1.5 Stores and Spares

(a) Stores and spares are valued at cost. Weighted average method is used to work out the pricingof issues and valuation of inventories. Various equipment & materials which are mostly heavyand earmarked for specific works are issued / valued at cost. “Here the Company deviatesfrom the Accounting Standard-2 “Valuation of Inventories” issued by ICAI whichrequires Inventories to be valued at the lower of cost and net realisable value.

(b) The material lying at site for capital works are being shown as capital works in progress.

(c) The stock of low value items of consumables are not maintained and are fully charged to revenue.

1.6 Revenue Recognition

(a) Revenue from sale of power is accounted for on accrual basis and is billed on Discoms as per thepower station wise tariff approved by Rajasthan Electricity Regulatory Commission subject tofinalization of truing up order. In case of power stations where the final tariff rates are yet to beapproved, provisional rates as provided by the Regulator is adopted. The energy sold to eachDiscom is arrived at by apportioning the total units sold by all the power stations of RVUNLamongst JVVNL, AVVNL and Jd.VVNL in the approved ratio determined and conveyed by theGovernment of Rajasthan from time to time.

(b) 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 correspondingdepreciation charged.

(c) Any surplus or deficit arising as a result of truing up order on the basis of audited annual accountsis adjusted in the year of issue of truing up order by the RERC.

(d) Interest / Surcharge on late payment / overdue sundry debtors for sale of energy is recognized insale of power when there is significant certainty of recovery exist.

(e) Sale of scrap is accounted for as and when sold.

1.7 Foreign Exchange Transactions

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the yearend are translated at the year end rate and the difference in translation and realised gains and losses on

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foreign exchange transactions (other than for fixed assets) are recognised in the statement of Profit &loss.

1.8 Preliminary and Deferred Expenses

(a) The premium, if any, paid to Financial Institutions / Banks on debt restructuring are deferredand charged to statement of Profit and Loss over the balance period of the loan.

(b) 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“Deferred Revenue Expenditure” to be charged off equally to the P&L, over the period of six/three years, based on the future economic benefits envisaged by the company as above.

1.9 Employee Benefits

(a) The Employee Benefits are accounted for as per the provision of AS-15 “Employees Benefits”issued by ICAI on the basis of categories in which the employees are covered namely definedcontribution plan & defined benefits plan.

(b) The benefit of Provident fund is covered under defined contribution plan. The employercontribution is recognised as expenditure in the statement of profit & loss.

(c) The employee benefits in respect of pension & gratuity liabilities are funded through trust on thebasis of contribution by RVUN along with other successor entities of erstwhile RSEB. Suchcontribution paid/payable is recognised in the statement of profit and loss.

(d) The benefits of pension, gratuity and leave encashment are covered under defined benefitsplan. Company’s liabilities towards pension, gratuity and leave encashment are determined byindependent actuary and accordingly recognised in statement of profit & loss. Liability for pension& gratuity as per actuarial valuation is paid/payable to a fund administered through a separatetrust.

(e) Short term employee benefits are recognized as an expense at the time of actual payment in thestatement of profit & loss.

1.10 Government Grants & Subsidies

Revenue subsidies and grants if any, received during the year from the Government of Rajasthan/CentralGovernment are treated as income and is shown separately in the statement of Profit & Loss.

1.11 Cash Flow Statement

Cash Flow Statement is prepared in accordance with the Indirect Method prescribed in AccountingStandard (AS) 3 on 'Cash Flow Statements'.

1.12 Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is apresent obligation as result of past event and it is probable that there will be an outflow of resources.Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neitherrecognized nor disclosed in the financial statements. These are reviewed at each balance sheet date andare adjusted to reflect the current estimate.

1.13 Rate Regulated Activities

(a) Expenses/income recognized in the Statement of Profit & Loss to the extent recoverable from orpayable to the beneficiaries in subsequent periods as per Rajasthan Electricity RegulatoryCommission (the RERC) Tariff Regulations are recognised as Regulatory asset /liability.

(b) Regulatory asset/liability is adjusted from the year in which the same becomes recoverable fromor payable to beneficiaries.

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1.14 Other miscellaneous expenditure/ income

(a) Expenses on training and recruitment, research and development are charged to revenue.

(b) Expenses incurred on raising finance are being charged off to revenue in the year in which theseare incurred.

(c) Interest on loans and advances to staff is recovered after completion of recovery of principalamount and is recorded/accounted for on receipt basis.

(d) Claims for grade difference, shortage of coal etc. lodged on coal companies are accounted for asand when the credit notes are received by adjusting/recognizing the same in the Profit and Lossaccount in the year of its receipt, irrespective of the period to which it pertains. No provision ismade for above claims due to uncertainty of its receipt.

(e) Debit /credit notes on account of fuel (coal/gas/oil etc.) are accounted for as and when these arereceived irrespective of the period it pertains.

(f) Generation linked incentive and productivity award admissible to the officers/employees of thePower Stations are accounted for on cash basis.

(g) 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 shownas income and accordingly net interest is charged to Statement of Profit and Loss.

(h) Payment received against debtors from sale of power are adjusted/treated as per theirchronological order date i.e. old outstanding dues are cleared first.


58

Authorised Share Capital

10,00,00,00,000 (P.Y. 10,00,00,00,000) 1,00,00,00,00,000 1,00,00,00,00,000Equity Shares of 10/- each

Issued,Subscribed & Paid Up Share Capital8,73,10,90,000 (P.Y. 7,28,85,90,100) 54.600 87,31,09,00,000 72,88,59,01,000Equity Shares of `10/- fully paid up.

TOTAL 87,31,09,00,000 72,88,59,01,000

Note No. 1 : SHARE CAPITAL

(Amount in `)

Particulars Account As at As atCode 31st March, 2016 31st March, 2015

II. NOTES ON FINANCIAL STATEMENTS

SHAREHOLDER’S FUNDS

1.1 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.

1.2 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.

1.3 Reconciliation of the number of Equity Shares

Particulars No. of Shares

2015-16 2014-15

At the beginning of the year 7,28,85,90,100 6,57,39,23,300

Add: Issued during the year 1,44,24,99,900 71,46,66,800

At the end of the year 8,73,10,90,000 7,28,85,90,100

1.4 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.

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a) Capital Reserve 56.200

Opening Balance 2 2

Add: Current Year Transfer - -

Less: Deduction During The Year - -

Closing Balance 2 2

b) Surplus 58.210

Opening balance (40,14,17,31,591) (13,77,25,05,250)

Add: Net Profit / (Loss) after taxtransferred from Statement of Profit & Loss (9,38,96,22,586) (26,36,92,26,342)

Closing Balance (49,53,13,54,177) (40,14,17,31,591)

TOTAL (49,53,13,54,175) (40,14,17,31,589)

Note No. 2 : RESERVES & SURPLUS

(Amount in `)


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3.1 The Company is to issue Nil (P.Y. ` 29,84,99,900/-) shares to Hon’ble Governor of Rajasthan at par

value of ` 10/- each. The company has sufficient authorised Share Capital to cover the Share capital

amount resulting from allotment of shares out of such Share Application Money.

Opening Balance 54.700 2,98,49,99,000 1,31,66,67,000

Add: Received during the year 11,44,00,00,000 8,81,50,00,000

Less: Share Capital issued during the year 14,42,49,99,000 7,14,66,68,000

Closing Balance - 2,98,49,99,000

Note No. 3 : SHARE APPLICATION MONEY PENDING ALLOTMENT

(Amount in `)



60

Opening Balance 46.930 27,29,94,121 -

Add: Transfer from Sale (Refer Note No.24) 43,87,30,027 26,70,01,382

Transfer from Interest Income (Refer Note No.25) 2,78,74,815 59,92,739

Less: Utilised During the Year - -

Closing Balance 73,95,98,963 27,29,94,121

Note No. 4 : FLY ASH UTILISATION FUND

(Amount in `)


4.1 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 or facilities,

promotion and facilitation activities for use of fly ash until 100% fly ash utilization level is achieved. In

compliance with the said notification, the company has created a Fly Ash Utilization Fund in its books of

accounts to which the entire sale proceeds of fly ash for the year amounting to ` 43,87,30,027/-

(P.Y. 26,70,01,382/-) and Interest earned on the fund amounting to 2,78,74,815/-(P.Y. 59, 92,739/-)

has been transferred.

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5.1 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.

Opening Balance 56.300 6,69,71,13,159 6,82,18,81,413


Less: Transferred to Statement of Profit and Loss 4,39,18,000 12,47,68,254

Closing Balance 6,65,31,95,159 6,69,71,13,159

Note No. 5 : DEFERRED REVENUE ON ACCOUNT OFADVANCE AGAINST DEPRECIATION

(Amount in `)



61

A. Bonds

i) Secured - -

ii) Unsecured

State Government Guaranteed, Redeemable, 8,50,00,00,000 8,50,00,00,000 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) 1,83,33,00,000 4,00,00,00,000

- Unsecured See Description Note (iii) 4,33,32,00,000 11,49,92,00,000

ii) From Others

- Secured See Description Note (iv) 2,25,07,84,17,121 1,72,27,58,83,529

- Unsecured See Description Note (v) 4,23,41,93,733 5,08,50,91,023

TOTAL 2,43,97,91,10,854 2,01,36,01,74,552

Note No. 6 : LONG-TERM BORROWINGS

(Amount in `)

Particulars As at As at31st March, 2016 31st March, 2015

NON-CURRENT LIABILITIES

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(i) 9.00% Redeemable Bonds 52.100 10,00,000 5,50,00,00,000 5,50,00,00,0002014-15 (Kalisindh Unit - II)

(30%, 30% and 40%redeemable at par at the end of10th, 11th and 12th yearrespectively from deemed dateof allotment i.e. 24.12.2014.)

(ii) 8.74% Redeemable Bonds 52.100 10,00,000 3,00,00,00,000 3,00,00,00,0002014-15 (Kalisindh Unit - II)

(30%, 30% and 40%redeemable at par at the end of10th, 11th and 12th yearrespectively from deemed dateof allotment i.e. 26.03.2015.)

8,50,00,00,000 8,50,00,00,000

(i) Descriptive details for Unsecured Public Bonds

(Amount in `)

S. Bonds Account Face As at As atNo. Code Value 31st March, 2016 31st March, 2015


62 Standalone

Less: Current Maturities(Carried to Note No.11)

9.00% Redeemable Bonds 52.100 10,00,000 - -2014-15

8.74% Redeemable Bonds 52.100 10,00,000 - -2014-15

- -

TOTAL 8,50,00,00,000 8,50,00,00,000

(Amount in `)

S. Bonds Account Face As at As atNo. Code Value 31st March, 2016 31st March, 2015

(i) State Bank of Bikaner & Jaipur 50.850

Term Loan - I **** 1,00,00,00,000 1,00,00,00,000

(Repayable in remaining 2 half yearlyinstallments of ` 33,33,00,000 and1 halfyearly installment of` 33,34,00,000 upto 16.04.2017)

Term Loan - II **** 1,50,00,00,000 1,50,00,00,000

(Repayable in remaining 3 half yearlyinstallments of ` 50,00,00,000 upto14.08.2017)

Term Loan - III **** 1,50,00,00,000 1,50,00,00,000

(Repayable in remaining 3 half yearlyinstallments of ` 50,00,00,000 upto12.02.2018)

Sub Total (i) 4,00,00,00,000 4,00,00,00,000

Grand Total (i) 4,00,00,00,000 4,00,00,00,000

Less: Current Maturities(Carried to Note No.11)

State Bank of Bikaner & Jaipur 50.850 2,16,67,00,000 -

TOTAL 1,83,33,00,000 4,00,00,00,000

(ii) Descriptive details of Term Loan from Banks - Secured Borrowings

(Amount in `)

S. Term Loan From Account As at As atNo. Code 31st March, 2016 31st March, 2015


63

(i) Allahabad Bank 50.830

a. Term Loan - I *** - 33,28,00,000

(This Loan has been repaid during theFinancial Year 2015-16)

b. Term Loan - II *** - 58,28,00,000


(ii) Indian Bank 50.959

Term Loan - I *** 16,60,00,000 49,96,00,000

(Repayable in remaining 1 quarterlyinstallments of ` 8,34,00,000 and 1quarterly installment of `8,26,00,000upto 04.08.2016)

(iii) Indian Overseas bank 50.990

a. Term Loan - I *** 2,50,00,00,000 2,50,00,00,000

(Repayable in remaining 1 quarterlyinstallments of `83,34,00,000 and 2quarterly installment of 83,33,00,000upto 15.07.2017)

b. Term Loan - II *** 4,00,00,00,000 4,00,00,00,000

(Repayable in remaining 2 quarterlyinstallments of ` 1,33,33,00,000 and1 quarterly installment of`1,33,34,00,000 upto 15.10.2017)

(iv) Bank of India 50.955

a. Term Loan - I *** 66,66,00,000 2,00,00,00,000

(Repayable in remaining 1 half yearlyinstallment of ` 66,66,00,000 upto27.09.2016)

b. Term Loan - II *** 1,66,66,00,000 2,50,00,00,000

The sanction amount of Loan is` 2,50,00,00,000.

(iii) Descriptive details of Term Loan from Banks - Unsecured Borrowings

(Amount in `)


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(Amount in `)


(Repayable in 2 half yearly installmentof `83,33,00,000 upto 28.03.2017)

c. Term Loan - III *** 2,50,00,00,000 2,50,00,00,000

(Repayable in 2 half yearly installmentof `83,33,00,000 and 1 half yearlyinstallment of `83,34,00,000 upto17.06.2017)

Total 11,49,92,00,000 14,91,52,00,000

Less: Current Maturities (Carried to Note No.11)

Allahabad Bank Term Loan-I 50.830 - 33,28,00,000

Allahabad Bank Term Loan-II 50.830 - 58,28,00,000

Indian Bank 50.959 16,60,00,000 33,36,00,000

Indian Overseas bank Term Loan-I 50.990 1,66,67,00,000 -

Indian Overseas bank Term Loan-II 50.990 1,33,34,00,000 -

Bank of India Term Loan-I 50.955 66,66,00,000 1,33,34,00,000

Bank of India Term Loan-II 50.955 1,66,66,00,000 83,34,00,000

Bank of India Term Loan-III 50.955 1,66,67,00,000 -

Total 7,16,60,00,000 3,41,60,00,000

TOTAL 4,33,32,00,000 11,49,92,00,000

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** Secured by Government Guarantee.

*** Secured by Government Guarantee and Default Escrow.

**** Secured by Government Guarantee, Default Escrow and pari-passu on current assets.


65

(i) LIC Loan (STPS) 52.501

a. Term Loan - I No. 150172121 - 5,36,66,662


b. Term Loan - II No. 150172131 3,46,26,662 6,92,53,329

(Repayable in remaining 1 yearlyinstallments of `3,46,26,662 upto15.07.2016, Secured against charge onAsset and Escrow Account)

c. Term Loan - III No. 150172141 2,66,67,066 4,00,00,366

(Repayable in remaining 2 yearlyinstallments of `1,33,33,533 upto15.07.2017, Secured against charge onAsset and Escrow Account)

d. Term Loan - IV No. 150172151 3,33,32,000 4,99,98,000

(Repayable in remaining 2 yearlyinstallments of ` 1,66,66,000 upto15.01.2018, Secured against charge onAsset and Escrow Account)

Sub Total (i) 9,46,25,728 21,29,18,357

(ii) REC Loan 53.300

a. The sanction amount of Loan is` 9,61,76,00,000. (CTPP - UnitsIII and IV)

(Repayable in remaining 47 quarterly 7,80,40,27,790 8,46,82,00,374installments of ` 16,60,43,145 upto31.12.2027, Secured against Paripassucharge on Asset and Default Escrow)

b. The sanction amount of Loan is 11,69,97,60,267 4,46,39,65,644` 25,32,24,00,000. (STPS - UnitsVII and VIII)

(Repayable in remaining 60 quarterlyinstallments of ` 42,20,40,000 upto30.9.2032, Secured against Paripassucharge on Asset and Default Escrow)

(iv) Descriptive details of Term Loan from others - Secured Borrowings

(Amount in `)


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66

(Amount in `)


c. The sanction amount of Loan is 10,69,16,76,201 4,38,08,25,771` 25,30,00,00,000. (CTPP - UnitsV and VI)

(Repayable in remaining 60 quarterlyinstallments of ` 42,16,66,667 upto30.9.2032, Secured against Paripassucharge on Asset and Default Escrow)

Sub Total (ii) 30,19,54,64,257 17,31,29,91,789

(iii) PFC Loan 53.550

a. Term Loan - I No. 7301013 - Dholpur 2,24,07,48,786 2,88,09,62,725

(Repayable in remaining 14 quarterlyinstallments of ` 16,00,53,485 upto15.07.2019, Default Escrow andHypothecation of Assets)

b. Term Loan - II No. 7301014 - CTPP 7,94,94,38,526 8,88,46,66,585(Units I & II)


c. Term Loan - III No. 7301015 - GLTP - 2,79,30,00,000(Unit II)

(Tranfer to GL PL)

d. Term Loan - IV No. 7301016 - STPS 3,49,99,99,985 3,89,99,99,990(Unit VI)


e. Term Loan - V No. 7301017 - KTPS 3,43,45,27,032 3,85,08,33,342(Unit VII)


f. Term Loan - VI No. 7301018 - CTPP 5,74,04,90,735 6,41,58,42,586(Unit I & II)

(Repayable in remaining 34 quarterlyinstallments of ` 16,88,37,962 upto

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67

(Amount in `)


15.07.2024, Default Escrow andHypothecation of Assets)

g. Term Loan - VII No. 7301019 - KaTPP 62,54,42,94,990 65,83,61,00,000(Unit I & II)

(Repayable in remaining 57 quarterlyinstallments of ` 1,09,72,68,333 upto15.04.2030, Default Escrow andHypothecation of Assets)

h. Term Loan - VIII No. 7301020 - 13,67,46,40,004 14,65,14,00,000Chhabra (Unit III & IV)


i. Term Loan - IX No. 7301021 - STPS 2,01,55,91,033 2,24,59,44,294(Unit VI)


j. Term Loan - X No. 7301022 - Giral - 2,17,02,18,670(Unit II)

(Tranfer to GL PL)

k. Term Loan - XI No. 7301023 - RGTP(Stg III) 6,52,66,66,663 7,00,13,33,334

(Repayable in remaining 55 quaterlyinstallments of ` 11,86,66,667 upto15.10.2029, Default Escrow andHypothecation of Assets)

l. Term Loan - XII No. 7301026 - RGTP 1,93,07,29,762 1,70,54,40,686(Stg IV)


(Repayable in 60 quarterly installmentsof `8,88,33,333 upto 15.10.2032,Default Escrow and Hypothecation ofAssets)

m. Term Loan - XIII No. 7301024 - STPS 35,23,10,95,736 24,11,92,71,875(Units VII and VIII)

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(Amount in `)



(Repayable in 60 quarterly installmentsof ` 63,30,00,000 upto 15.04.2032,Default Escrow and Hypothecation ofAssets)

n. Term Loan - XIV No. 7301025 - CTPP 32,27,66,28,867 15,41,17,49,262(Units V and VI)



o Term Loan - XV No. 7304005 - KTPS 1,88,75,95,604 1,28,58,98,834(Addl. Capitalisation)

The sanction amount of Loan is`2,73,70,00,000.

(Repayable in 60 quarterlyinstallments of 4,56,16,667 upto15.01.2032, Default Escrow andHypothecation of Assets)

p Term Loan - XVI No. 7304006 - STPS 32,15,03,484 17,50,00,000(Addl. Capitalisation)



q Term Loan - XVII No. 7324001 4,38,11,27,883 76,79,05,559(Buyer's Line & Credit)



r. Term Loan - XVIII No. 7365001

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69

(Amount in `)


The sanction amount of Loan is 21,00,00,00,000 -` 21,00,00,00,000.

(Repayable in 28 quarterly installmentsof ` 75,00,00,000 upto 15.01.2026,State Govt. Guarantee and DefaultEscrow)

Sub Total (iii) 2,04,65,50,79,090 1,64,09,55,67,742

Total (i+ii+iii) 2,34,94,51,69,075 1,81,62,14,77,888


LIC Loans 52.501 6,46,25,962 11,82,92,629

REC Loans 53.300 66,41,72,580 66,41,72,579

PFC Loans 53.550 9,13,79,53,412 8,56,31,29,151

9,86,67,51,954 9,34,55,94,359

GRAND TOTAL 2,25,07,84,17,121 1,72,27,58,83,529

Standalone

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

(Amount in `)


(i) PFC Loan *** 53.550

a. Term Loan - I No. 7304004 - KTPS - 76,02,616(Renovation & Modification)


Sub Total (i) - 76,02,616

(ii) HUDCO Loan*** 50.820

a. Term Loan - I No. 19960 50,00,00,000 90,00,00,000

(Repayable in remaining 5 quarterlyinstallments of ` 10,00,00,000 upto31.05.2017)

Sub Total (ii) 50,00,00,000 90,00,00,000

(iii) World Bank Loan 53.598(KTPS - Units I to VI)

a. Cash Loan 10,11,113 11,84,171

(Repayable in remaining 50 monthlyinstallments of ` 17,306 and 10installments of `14,584 upto15.03.2022)


70 Standalone

(Amount in `)


b. PPF Advance 33,79,910 41,04,149

(Repayable in remaining 10 monthlyinstallments of ` 72,424, 10 monthlyinstallments of ` 68,651, 20 monthlyinstallments of ` 59,750, 10 monthlyinstallments of ` 53,037, 10 monthlyinstallments of ` 24,378 upto15.03.2022)

Sub Total (iii) 43,91,023 52,88,320

(iv) State Govt. Loan (13.75%) 54.200 1,38,07,00,000 1,38,07,00,000(STPS - Units I to V)

Terms of repayment of such loan shallbe decided by the Govt. of Rajasthan

Sub Total (iv) 1,38,07,00,000 1,38,07,00,000

(v) National Capital Region Planning 53.551 20,00,00,000 40,00,00,000Board*** (KTPS Unit - VII)

(Repayable in remaining 1Yearlyinstallments of ` 20,00,00,000 upto19.03.2017)

Sub Total (v) 20,00,00,000 40,00,00,000

(vi) REC Loan *** 50.983 - -

a. Loan No. 57-8456 1,50,00,00,000 1,50,00,00,000

(Repayable in 17 monthly installmentsof ` 8,33,33,333 and 1 monthlyinstallment of ` 8,33,33,339 upto30.09.2017)

b. Loan No. 57-8982 1,50,00,00,000 1,50,00,00,000


c. Loan No. 57-9353 1,50,00,00,000 -


d. Loan No. 57-9442 2,22,22,22,220

(Repayable in 4 monthly installmentsof ` 55,55,55,555 upto 15.06.2016)

Sub Total (vi) 6,72,22,22,220 3,00,00,00,000

Total (i to vi) 8,80,73,13,243 5,69,35,90,936


71

(Amount in `)



National Capital Region Planning Board 53.551 20,00,00,000 20,00,00,000

World Bank Loan Cash Loan 53.598 1,73,058 1,73,058

PFC Loan 53.550 - 76,02,616

REC Loan 50.983 3,97,22,22,213 -

World Bank Loan PPF Advance 53.598 7,24,239 7,24,239

HUDCO Loan 50.820 40,00,00,000 40,00,00,000

4,57,31,19,510 60,84,99,913

TOTAL 4,23,41,93,733 5,08,50,91,023

** Secured by Government Guarantee*** Secured by Government Guarantee and Default Escrow

Trade Payables - -

Others

Security Deposits from Contractors 46.101,46.102, 2,87,87,44,983 1,54,76,46,95046.121, 46.122

Retention Money 46.104 & 46.124 7,00,65,44,203 3,65,04,85,174

Misc Deposits - Others (Refer Note No. 7.1) 46.968 24,83,42,513 26,63,26,096

TOTAL 10,13,36,31,699 5,46,44,58,220

7.1 Miscellaneous deposits - Others includes ` 24,95,08,767/- related to Escrow account for Mines closurereceived from PKCL.

Note No. 7 : OTHER LONG TERM LIABILITIES(Amount in `)


For employee Benefits

Leave Encashment 44.340 86,46,79,259 -

TOTAL 86,46,79,259 -

Note No. 8 : LONG TERM PROVISIONS(Amount in `)



72

Trade Payables

Due to Micro & Small Enterprises* - -

Others

-Liab.to Railways for Coal Receipts 40.110-40.180 5,28,33,18,389 4,47,57,61,396

-Liab. for Unpaid Coal Bills 40.700 95,83,37,260 23,33,22,559

-Coal supplier account 40.240 11,10,34,96,930 9,85,04,27,757

-Gas related cost 40.630 24,16,28,818 23,95,20,118

-Oil Supplier account 40.420, 620 21,72,343 4,96,95,052

-Other Fuel related liability 40.310-40.330 10,36,998 10,36,998

TOTAL 17,58,99,90,737 14,84,97,63,880

Note No. 10 : TRADE PAYABLES(Amount in `)


Standalone

a) Loans Repayable on DemandFrom Banks - Secured

SBBJ CC Account* 50.110 - 73,73,96,725

b) Other Loans and AdvanceFrom Others - Unsecured**

PFC - Secured by Government 50.600 6,93,74,18,149 6,64,00,00,000guarantee and default escrow

PFC - Secured by default escrow 75,00,00,000

TOTAL 7,68,74,18,149 7,37,73,96,725

CURRENT LIABILITIES

Note No. 9 : SHORT-TERM BORROWINGS(Amount in `)


*Secured by First pari-passu charge by way of hypothecation of entire current assets of the company includingraw material, stock-in-process, finished goods, stores and spares, receivables and other current assets with otherworking capital lenders. Unutilised limit as on 31.03.2016.

* Disclosure in respect of Micro, Small and Medium Enterprises as at 31st March,2016 as required by Micro,Small and Medium Enterprises Development Act, 2006 is ‘Nil’, on which auditors have been relied upon.


73

Current maturities of long-term debt 23,77,25,71,464 13,37,00,94,272(Refer Note No. 11.1)

Interest accrued but not due on term 46.710 4,82,04,00,120 4,38,31,95,759loan & bonds

Int. accured but not due on WCL loans 46.720 74,62,46,957 9,11,91,919& bonds

Income received in Advance 46.917 1,27,84,387 97,89,626

Other Payables

-Security Deposits from Contractors 46.101 - 46.916 72,94,42,712 59,56,15,589

-Security Deposits from Employees 46.920 3,12,808 3,12,438

-Earnest Money Deposits 46.103 & 46.123 18,18,36,157 22,21,01,118

-Retention Money 46.124 & 46.104 4,38,50,62,958 2,31,55,82,172

-Other Deposits 46.1XX 6,18,08,55,466 6,22,65,80,869

-Liabilities for Capital Works/Supplies 42.XXX 3,00,48,48,734 3,06,96,66,603

-Liabilities for O&M Works/Supplies 43.XXX 2,29,84,91,993 1,11,00,31,572

-Statutory Liabilities 46.230-46.390 29,58,45,751 21,03,84,376

-Staff related liabilities 44.XXX 16,89,61,920 15,65,64,776

-Due for Expenses 46.410 9,49,10,934 8,99,45,314

-Amount payable to related parties 46.971-73 & 56,53,53,440 51,02,37,646(Refer Note No. 11.2) 46.981-84

-Prov.for Coal related cost 40.641 4,69,216 79,12,029

-Prov. For Liab. For Expenses 46.430 2,68,67,80,336 1,86,46,97,998

-Prov. For doubtful old balances-others 46.965 40,26,521 40,26,521

-Sundry Liabilities 31,54,49,529 43,47,52,327

TOTAL 50,26,46,51,404 34,67,26,82,922

Note No. 11 : OTHER CURRENT LIABILITIES(Amount in `)


Standalone

Bonds - Unsecured Borrowing - -

Term Loan from Banks - Secured Borrowings 2,16,67,00,000 -

Term Loan from Banks - Unsecured Borrowings 7,16,60,00,000 3,41,60,00,000

Term Loan from others - Secured Borrowings 9,86,67,51,954 9,34,55,94,359

Term Loan from others - Unsecured Borrowings 4,57,31,19,510 60,84,99,913

Total 23,77,25,71,464 13,37,00,94,272

11.1 : Descriptive details for Current Maturity of Long Term Debts (carried from Note No. 6)(Amount in `)



74

Amount Payable to AVVN 46.983 99,88,523 99,88,523

Amount Payable to JdVVN 46.984 8,51,03,803 8,19,61,099

Amount Payable to JVVN 46.982 16,76,55,092 16,73,11,700

Amount Payable to RVPNL 46.981 30,23,22,173 25,06,37,075

Payable to Subsidiaries Companies 46.971-73 2,83,849 3,39,249

TOTAL 56,53,53,440 51,02,37,646

11.2 : Amount Payable to Related Parties(Amount in `)


11.3 In respect of Inter Company transactions with other successor companies of erstwhile RSEB, no interest

has been charged/paid.

11.4 The Inter Company transaction in respect of Jd VVNL, JVVNL, AVVNL & RVPN have been reconciled

up to the year 2014-15 and transactions of the current year are in the process of reconciliation.

11.5 Staff related liabilities and Loans and advances to staff are under Reconciliation/ Adjustment.

11.6 Provision towards liability for expenses/creation of prepaid expenses is not generally made for small /

petty amounts.

Provisions for Employee Benefits

Gratuity 44.110 44,94,573 1,00,15,22,632

Pension 44.120 2,65,18,51,947 1,46,14,60,512

Ex-gratia 44.140 87,44,454 1,06,31,565

Leave Encashment 44.340 9,32,55,948 -

TOTAL 2,75,83,46,922 2,47,36,14,709

Note No. 12 : SHORT TERM PROVISIONS(Amount in `)


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

Standalone


75 Standalone

Non

-Cur

rent

Ass

ets

Not

e N

o. 1

3 :

FIX

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AS

SE

TS(A

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sA

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.03.

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.03.

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31.0

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.03.

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Tang

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Ass

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1.La

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10.1

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12.1

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1,17

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,46,

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62 2

,13,

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- 1

,20,

85,6

6,83

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- -

- 1

,20,

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6,83

1 1

,17,

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8

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,53,

54,5

13 5

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- 9

,11,

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- 6

5,50

,291

8,4

5,83

,054

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,511

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21,

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7,35

,443

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,58,

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- 2

8,65

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0 4

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,98,

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23,

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0,99

,879

17,

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7,18

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1,56

,66,

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,76,

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- 1

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,35,

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95 1

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0 2

,41,

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6,92

4 7

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,52,

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2,2

2,74

,363

- 3

,09,

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0 1

5,14

,25,

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34 9

,15,

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9

4. O

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10.

4XX

3,8

3,85

,92,

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2,0

5,07

,61,

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30,

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81 -

5,8

8,62

,68,

307

12.

400

69,

12,7

2,28

9 1

9,64

,70,

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4,2

7,68

8 -

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5,57

4 4

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2,73

3 3

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5XX

1,7

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,18,

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63 2

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27 7

,18,

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7,59

6 -

1,9

8,79

,74,

22,4

94 1

2.50

0 5

1,43

,57,

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64 7

,84,

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5,73

2 1

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7 -

57,

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1,72

,839

1,4

1,09

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55 1

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& C

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Net

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k 1

0.6X

X 9

6,34

,96,

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3,3

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,054

15,

20,7

0,02

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1,64

9 1

2.60

0 5

1,60

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25,

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68 3

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11 -

48,

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44,

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5,2

5,50

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7 -

- 5

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85 1

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0 4

,24,

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17 8

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4,3

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95,

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15 1

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& F

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10.

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9,6

8,45

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1,1

9,92

,851

1,2

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9 -

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3,99

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2.80

0 2

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48 5

8,74

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57,

119

- 3

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18 7

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74 7

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11

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10.

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11,

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9,11

7 7

1,79

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0 -

11,

74,1

0,92

5 1

2.90

0 5

,99,

88,5

96 8

6,10

,570

1,1

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3 -

6,8

4,81

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4,8

9,29

,903

5,0

5,60

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2,1

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3,45

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8 -

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633

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9,05

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1 3

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- 7

9,66

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iii)

- -

- -

46.

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62,

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62,0

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) (

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)

(Ref

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ote

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1)

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otal

(i+

ii+iii

) 2

,19,

50,2

2,59

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44,

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8,66

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7,4

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- 2

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7,56

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60,

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4,36

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9,6

3,63

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517

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388

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8,89

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ious

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6,21

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69,

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1,79

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1,9

1,11

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1,9

1,11

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61,

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9,86

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63,

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Prev

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- -

- -

- -

- -

-


76

13.1 The Fixed Assets of the company includes net assets amounting ` 62,04,10,292/- appearing as on01-04-2008, accounted for in the books of HQ. These assets were transferred by the State Govt. underthe transfer scheme. Details of these assets like situation and location are not available due to whichprovision 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.

13.2. Land and rights (free hold/lease hold) have been acquired pursuant to Power Sector Reform Scheme assuch the title deeds pertaining to some assets in the name of erstwhile RSEB have been continued.

13.3. The title of the following assets does not vest with RVUN.

Particulars Location Amount (in `)

land on which road leading to STPS is built STPS, Suratgarh 68,23,922

Cement Concrete Road CTPP, Chabbra 40,15,71,731

Road overbridge at KTPS KTPS, Kota 21,99,98,932

Capital Work In Progress 14-15XXX 91,77,55,68,812 80,41,83,84,746

Capital Inventory and Stores:

Stock of material at const.stores 22.201-22.680 1,19,70,24,892 7,64,81,450

Less: Prov. for O&M & Capital Stores 22.910 (79,33,254) (79,33,254)

TOTAL 92,96,46,60,450 80,48,69,32,942

Note No. 14 : FIXED ASSETS-CAPITAL WORK IN PROGRESS

(Amount in `)


13.4. The company has taken certain assets on lease, the original cost of which is ` 41,36,92,160/-. Leaserental on such assets are paid as per terms of lease agreements with lessors i.e. Banks.

13.5. The land on which the Rest House and Residential Colony are developed at DCCPP in city standsowned by RRVPNL.

13.6. The RVUNL (Thermal Design wing) has shared the construction cost of the new ‘RERC Building’ situatedat Lal Kothi campus, Sahkar Marg, Jaipur, constructed by RVPNL. The cost portion on the part ofRVUNL works out ` 3,27,70,000/-. Further RVUNL has agreed to pay monthly lease rent of` 1,05,000/- over a period of 20 years (term period of lease). The capital cost appearing in the books ofRVUNL shall also be amortised equally over the period of lease.

13.7. Out of total land acquired for DCCPP, land measuring 200.01 Bigha is yet to be allotted in favour of theCompany.

Standalone


77

Other Investment - Unquoted (At Cost) 20.270


Dholpur Gas Power Limited 5,00,000 5,00,000(50,000 equity shares of 10/- each)

Giral Lignite Power Limited 3,70,05,00,000 1,85,05,00,000(37,00,50,000 (PY 18,50,50,000)equity shares of 10/- each)

Chhabra Power Limited 5,00,000 5,00,000(50,000 equity shares of 10/- each)

Rajasthan State Coal Mining - 5,00,000Company Limited*

(Nil (P.Y.50,000) equity shares of` 10/- each)

Joint Venture Companies

Parsa Kente Collieries Ltd 1 1(1,30,000 equity shares of 10/- each)

Rajasthan Collieries Ltd. 1 1(1,30,000 equity shares of 10/- each)

TOTAL 3,70,15,00,002 1,85,20,00,002

* Striked off under section 560 of the Companies Act, 1956 w.e.f. 10/09/2015.

Note No. 15 : NON-CURRENT INVESTMENTS(Amount in `)


15.2 The Company had entered (3 August 2007) into a Joint Venture (J.V.) Agreement with M/s AdaniEnterprises 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 AELwas 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 recordedthese shares in the form of investment at notional value of 1/- in the books of accounts in the FinancialYear 2009-10. Further under JV Agreement, Company handed over its Coal mines located in the Stateof Chhattisgarh (Parsa East & Kanta Basin Coal Blocks) to PKCL in the year 2008-09, free of cost, forprospecting, exploration and coal mining over it for a period of 30 years from commencement of supplyof coal from the Coal Blocks and mining has been started w.e.f. 25.03.2013.

Based on the Financial Statement of the JV entity, the company's share of assets, liabilities and income& expenditure as required by AS-27 'Financial Reporting of interest in Joint Ventures' are given below:

Standalone

15.1 Disclosure of Investment towards Cost/M.V 2015-16 2014-15

a) Aggregate amount of Quoted Investments - -

b) Aggregate amount of Unquoted Investments(At Cost) 3,70,15,00,002 1,85,20,00,002


78

A. AssetsNon-current AssetsTangible Assets 4,24,575 5,37,810In-tangible Assets 1,51,60,019 1,57,24,157Other Non-current Assets 1,28,55,143 58,91,073Current Assets 1,93,42,64,549 78,79,04,397

B. LiabilitiesNon-Current Liabilities 2,74,635 2,23,700Current Liabilities 1,94,73,52,966 80,46,06,522

C. Income 1,49,21,15,298 71,21,35,818D. Expenditures 1,48,22,65,827 69,90,08,876


15.3 The company had entered (9 December, 2011) into a joint venture Agreement with M/s Adani EnterprisesLtd. (AEL) under which a separate company 'Rajasthan Collieries Ltd. ' (RCL)(CIN: U10100RJ2012PLC038382) was incorporated on dt. 27.03.2012 in which ratio of equity capitalof RVUN Ltd. and AEL was fixed at 26:74 respectively. Accordingly, 1,30,000 equity shares of RCL weretransfrerred on dt. 01.10.2013 to the company, free of cost, representing 26 percent voting right in RCL.The company has recorded these shares in the form of investment at notional value of 1/- in the booksof accounts in the year 2013-14. Further, the Coal Mining and Delivery Agreement (CMDA) has alsobeen executed on dt. 03.10.2013 between RVUN and RCL to undertake the work of mining and arrangingfor transport and delivery of coal from Kente Ext. coal block located in Chhattisgarh to RVUN's powerplants. The work relating to mining has not been started so far.

Based on the Financial Statement of the JV entity, the company's share of assets, liabilities and income& expenditure as required by AS-27 'Financial Reporting of interest in Joint Ventures' are given below :

A. AssetsOther Non-current Assets 96,88,207 540Current Assets 7,99,895 6,76,671

B. LiabilitiesNon-Current Liabilities 97,76,022 -Current Liabilities 16,509 8,403

C. Income 47,136 50,736D. Expenditures 20,373 22,606


15.4 The Board of Directors of RVUNL in its 149th and 150th meeting held on 8th October,2008 and 7thNovember, 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 LignitePower Limited (GLPL), a wholly owned subsidiary of the Company on a ‘going concern basis’ alongwith all its assets & liabilities on book value, at such consideration, being not lower than the net bookvalue, to be issued in the form of equity shares in the said subsidiary company (GLPL) to RVUN, witheffect 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. The consideration for theabove transfer of 456,24,98,040/- (“Net Book Value of Assets transferred”) has been received amount-

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Unsecured & Considered Good

Advance to Suppliers & Contractors for 25.XXXCapital Goods

(Refer Note No. 17.1) - considered Good 9,87,15,08,972 13,28,71,88,693

- considered doubtful 13,64,81,363 15,05,63,911

Less: Provision for doubtful advances 25.910 (13,64,81,363) (15,05,63,911)

TOTAL 9,87,15,08,972 13,28,71,88,693

Note No. 17 : LONG TERM LOANS AND ADVANCES(Amount in `)


17.1 The Board of Directors of the company in its 154th meeting held on 05-03-2009 decided to refund toBHEL 59,82,58,021/-, the equivalent amount of WCT deducted from their bills subject to the conditionthat the BHEL shall promptly refund entire amount including interest, if any, to the RVUN within sevendays from the date of receipt of the same by BHEL from the commercial taxes department. Till such timethe same has been shown as Advance receivable from BHEL. The company has filed appeal before theTax Board Rajasthan against the decision of Commercial Tax Department and the same is pending.

Note No. 16 : DEFERRED TAX ASSETS

No provision for deferred tax assets / liability pursuant to AS-22 “Accounting for Taxes on Income” hasbeen made by the company as there is no virtual certainty supported by convincing evidence that there shall beany future tax liability against which the provisions can be adjusted. Therefore it has been considered that noprovision be made pursuant to AS-22.

ing to 185,00,00,000/- in the form of equity shares in GLPL and the balance of 271,24,98,040/- hasbeen treated as loan to GLPL(wholly owned subsidiary of RVUNL).

15.5 Pursuant to the decision of the board of Director of the company, in its 241st meeting held on 20.10.2014and after obtaining the consent of the lender(s) and exemption from payment of stamp duty to the stategovernment, the "effective date of transfer" was fixed to be 01-Apr-2015 for transfer of the 1X125 MWUnit-2 (Stage-II) of Giral Lignite Thermal Power Station situated at Giral in District Barmer, Rajasthan toGiral Lignite Power Limited (GLPL), a wholly owned subsidiary of the company on a "going concernbasis" along with all its assets amounting to 758,80,00,068/- and liabilities amounting to 729,01,38,471on book value. The consideration for the above transfer was approved in the form of issue of EquityShares in GLPL of ` 185,00,00,000/-. The company transferred the net assets of ` 29,78,61,957/- asabove and balance payable amount of 155,21,38,403/- has been adjusted against receivable amountof GLPL appearing in the books of accounts.

15.6 The company has Investment of ` 3,70,05,00,000/- (P.Y. ` 1,85,05,00,000/-) in its subsidiary GLPLwhose net worth as per its latest audited financial statements has been fully eroded. However in view offact that this investment is held as long term investment and the diminuition in the value of investmentbeing on account of temporary in nature, no provision for diminuition in the value of this investment isconsidered necessary.

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Deffered Revenue Exp. not yet written-off 17.222 39,91,35,970 32,93,62,669

Preliminary Exp. not yet written-off 17.225 37,62,277 37,62,277

Exp.on survey /Projects not yet sanctioned 17.300 1,32,04,695 1,32,04,695

Prepaid Expenditure 28.820 53,50,094 61,167

Other Receivables

Security Deposit with Lessor 28.890 1,55,83,500 1,55,83,500

Subvention Receivable From State Govt. 28.624 1,77,70,49,384 1,96,68,95,384

Less:- Current Maturity

(Carried to Note No.23) (18,98,46,000) (18,98,46,000)

Other Deposits 28.919 1,76,37,439 60,67,718

TOTAL 2,04,18,77,358 2,14,50,91,410

Note No. 18 : OTHER NON-CURRENT ASSETS(Amount in `)


18. In line with significant accounting policy No. 1.8(b), an amount of `17,87,14,445/-(P.Y. ` 8,14,89,445/-) has been charged to Statement of Profit and Loss and balance amounting to`57,74,82,780/- (P.Y. `40,74,47,223/-) has been deferred to be amortised in the remaining balancefinancial years.

18.2 During the year the interest subsidy of 18,98,46,000/- has been adjusted against the deferred subventionreceivable as approved in the final FRP by GOR in Nov,2005.

18.3 The ownership of leased assets of the following companies have not been transferred in the favour of thecompany after expiry of lease agreements due to pending litigation in court or in absence of power ofattorney. The security deposit equivalent to residual value of the lease assets have already been depositedwith lessors except M/s ICICI Ltd. for which payment will be made. The details are as under:-

(Amount in `)

S.No. Name of Lessor Lease Value Residual Value

1 ICICI Ltd. 84,00,00,000 84,00,000

2 Indo Nissan Oxo Chemical Ltd. 6,23,34,000 155,83,500

Total 90,23,34,000 2,39,83,500


81

Coal Stock 21.101 6,06,72,78,646 7,92,59,58,911

Oil Stock 21.105 26,29,37,158 48,12,38,739

Coal in transit 21.121 10,27,19,513 13,33,04,703

Coal Stock in Transit lying with Third party 21.122 47,63,01,533 91,15,94,615

Stores & Spares 22.221-22.690 1,66,27,01,300 1,46,61,71,309

Stock shortage pending investigation 22.710-22.830 23,56,077 23,56,077

Less:Prov. For Doubtful old Balances 46.965 (23,56,077) -

TOTAL 8,57,19,38,149 10,92,06,24,354

Note No. 19 : INVENTORIES(Amount in ` )


CURRENT ASSETS

Standalone

Debts outstanding for a periodexceeding six months fromDue Date of Payment

Secured, considered good - -

Unsecured, considered good - -

Doubtful - -

Other Debts


Unsecured, considered Good 56,78,23,52,620 27,83,78,68,777

Doubtful -

TOTAL 56,78,23,52,620 27,83,78,68,777

Note No. 20 : TRADE RECEIVABLES(Amount in `)


Receivables against sale of power-JVVNL 23.802 22,69,48,15,206 7,70,88,25,743

Receivables against sale of power-AVVNL 23.803 17,13,88,46,075 9,32,27,26,294

Receivables against sale of power-JD.VVNL 23.804 16,94,86,91,339 10,80,63,16,740

Total 56,78,23,52,620 27,83,78,68,777

20.1 Details of Trade Receivables(Amount in ` )


20.2 Trade Receivable have been reconciled up to the year 2014-15 and transactions of the current year arein the process of reconciliation.


82

Balances with banks

Current Accounts 24.300-24.407, 49,49,17,293 79,55,97,09924.409-24.421 24.450

SBBJ CC Acount* 50.110 45,22,62,506 -

Current Account - Fly Ash Fund 24.422 25,72,127 2,63,18,308

With Public Deposit Accounts 24.451-24.452 30,000 30,000

Cash on hand 24.110 5,73,033 5,88,164

Others

Remittances in Transit 24.601-24.652 25,05,015 34,19,276

Escrow Account with UBI Kolkata 24.408 24,95,08,767 -

Cash Imprest with Staff 24.210 & 24.220 28,018 28,019

FDR With Bank - Fly Ash Fund 20.240 39,84,57,313 19,68,82,900

FDR with Scheduled banks** 20.280 31,42,77,958 11,82,08,052

TOTAL 1,91,51,32,030 1,14,10,71,818

Note No. 21 : CASH AND CASH EQUIVALENTS(Amount in `)


* Out of the total amount of 45,22,62,506/-, amount of 33,85,69,523/- pertains to Fly Ash Utilization Fund.**Out of the total amount of ` 31,42,77,958/- FDR’s amounting to ` 4,32,59,750/- have a maturity periodbeyond 12 months.

21.1 Cash and Cash equivalents as at 31.03.2016 include restricted Bank Bal. of `31,42,77,958/- (P. Y.`11,22,15,743/-). These restrictions are primarily on account of cash and bank balances held as marginmoney deposits against bank guarantee and Letter of Credit issued.

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Note No. 22 : SHORT TERM LOANS & ADVANCES(Amount in `)


Un-secured & Considered good

Loans & Advances to Empolyees 27.100-27.209,

- considered good 27.500 33,68,804 32,79,906

- considered doubtful 13,839 13839

Less: Provision for doubtful advances 27.910 (13,839) (13,839)

33,68,804 32,79,906

FBT Receivable 27.411 29,99,181 29,99,181

Advances for Fuel Supply 26.8XX-26.805 97,18,35,136 65,23,94,550

Advances for O&M Supplies

- considered good 26.1XX-26.7XX 1,94,95,53,911 1,43,73,75,585


Less: Provision for doubtful advances 26.910 (4,55,28,821) (4,55,28,821)

2,92,13,89,046 2,08,97,70,135

Loans & Advances to Other Parties 27.801-27.805, 10,38,589 11,47,28127.510

Receivables from Subsidiaries 28.931 1,16,03,59,637 2,71,24,98,040Companies (GIRAL LPL)

Deferred Sale Consideration (Lease) 28.101 3,29,62,973 3,29,62,973(Refer Note No. 22.1)

TOTAL 4,12,21,18,230 4,84,26,57,516

22.1 No credit is taken in the accounts for interest payable on defaulted instalment’s of sale consideration bylease finance companies, due to specific provision in their agreements. Consequential action has beentaken by RVUN by way of with-holding payments of lease rentals on occurrence of defaults.

22.2 As at the year end loans/ advances aggregating to ` 1,16,03,59,637/- (P.Y. `2,71,24,98,040/-) are duefrom its subsidiary GLPL. Net worth of its subsidiary as per latest audited financial statements has beenfully eroded. However keeping in view investment in subsidiary is of long term in nature, no provision isconsidered at this juncture.


84

Interest Accrued & Due 28.290- considered Good 11,60,07,835 5,13,344- considered Doubtful - 1,77,34,431

Less: Provision for doubtful debts - (1,77,34,431)Interest Accrued but not due 28.31X-28.363

- considered Good 2,50,37,307 1,46,71,125- considered Doubtful 4,12,070 4,12,070

Less: Provision for doubtful debts 28.900 (4,12,070) (4,12,070)Others:Deffered Rev.Exp.not yet written-off 17.222 18,17,51,702 8,80,88,373Inter Unit Accounts (Refer Note No. 23.1) 30.X-38.X (1) (1)Prepaid Expenses 28.820 9,66,63,862 16,13,44,019Amt Recoverable from Employees 28.401 1,04,474 2,19,345Fuel Related Receivables & Claims 28.513-28.514, 4,02,70,01,653 3,93,39,34,136

28.554Subvention Receivable From State Govt. 28.624 18,98,46,000 18,98,46,000Income from Investment 27.421 3,902 3,902Receivables from Subsidiaries 28.931 5,46,05,34,398 3,09,40,61,634Companies (GIRAL LPL)Other Claims 28.724-28.790 17,915 17,915Other Receivables (Refer Note No. 23.2) 28.810, 28.811,

28.890- considered good 28,20,67,298 17,77,98,971- considered doubtful 3,80,83,142 3,80,83,142

Less: Provision for doubtful advances 28.910 (3,80,83,142) (3,80,83,142)Deposits 28.914-28.919 9,80,15,889 12,36,08,990TOTAL 10,47,70,52,234 7,78,41,07,753

Note No. 23 : OTHER CURRENT ASSETS(Amount in `)


23.1 The Inter Unit Transactions upto 31-03-2016 have been reconciled.

23.2 Other receivable includes an excess amount of ` 35,72,188/- had been paid by STPS (Const.) unit toGovt. for acquisition of Land. This amount was to be recovered from the payment to be made byTransmission Company to Govt.

23.3 Lenders for GLPL i.e PFC and Banks are agreed in principle for transfer of their loan to GLPL. Howevertripartite agreement is still to be executed. It has also been agreed between RVUN and GLPL that RVUNshall meet out the financial/contractual commitments (including debt servicing) regarding loans availedfrom the financial institutions. Expenditure, if any, incurred by RVUN in this regard shall be reimbursedby GLPL.

23.4 As at the year end receivables aggregating to 5,46,05,34,398/- (P.Y. 3,09,40,61,634/-) are due fromits subsidiary GLPL. Net worth of its subsidiary as per latest audited financial statements has been fullyeroded. However keeping in view investment in subsidiary is of long term in nature, no provision isconsidered at this juncture.

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23.5 During the year 2006-07 the Mining Department recovered an amount of ` 7,60,000/- by seizing ourBank Account at DCCPP, Dholpur, against penalty of Royalty not deposited. This royalty amount was` 76,000/- against which ten times penalty was recovered. The liability to pay the royalty lied with thecontractor M/s. D.K.Sharma. The matter is still under correspondence with the department for gettingthe refund of the ceased amount. The same is booked under accounting code 28.919.

Sale of Power (Refer Note No. 24.1) 61.410 1,00,83,71,91,810 91,99,84,93,051

Add: Advance against Depreciation Deferred(Refer Note No. 24.2) 61.940 4,39,18,000 12,47,68,254

Less : Trial Run Revenue (Infirm Power) 61.950 (1,26,05,45,865) (1,31,67,97,254)

99,62,05,63,945 90,80,64,64,051

Sale of Fly Ash 62.351 48,93,20,622 26,91,58,538

Less: Transferred to Fly Ash Utilisation Fund (43,87,30,027) (26,70,01,382)(Refer Note No. 4)

Less: Excise Duty/VAT/CST on Fly Ash (5,05,90,595) (21,57,156)

TOTAL 99,62,05,63,945 90,80,64,64,051

Note No. 24 : REVENUE FROM OPERATIONS(Amount in ` )

Particulars Account For the year ended For the year endedCode 31st March, 2016 31st March, 2015

24.1 Claims on account of late payment surcharge towards delayed payment by DISCOMs amounting to` 321,84,08,393/- (P.Y. ` 18,88,66,484/-) have been accounted for as Revenue from sale of power inaccordance with RERC Tariff Regulations.

24.2 In line with significant accounting policy No. 1.6(b), an amount of 4,39,18,000/-(P.Y. 12,47,68,254/-)has been recognized during the year from the AAD and included in Sale of Power.

Interest Income:-

Interest subsidies received from Govt. 63.21X 1,94,859 2,27,843

Interest on Loans and Advances to Staff 62.21X-62.21X 1,88,007 32,351

Interest Income from Investments/Deposits 62.22X-62.26X 4,87,82,704 1,75,42,067

Less: Transferred to Fly Ash UtilisationFund (Refer Note No.4) (2,78,74,815) (59,92,739)

Other Non Operating Income:-

Miscellaneous Receipts (Including Rebate) 62.9XX 35,56,53,679 27,67,84,516

Sale of Scrap 62.3X 64,41,533 85,51,383

TOTAL 38,33,85,967 29,71,45,421

Note No. 25 : OTHER INCOME(Amount in ` )



86

Generation & Other Direct Expenses 71.xxx,72.xxx 75,22,97,14,461 88,54,19,46,008(Refer Note No. 26.1)

TOTAL 75,22,97,14,461 88,54,19,46,008

Note No. 26 : GENERATION & OTHER DIRECT EXPENSES(Amount in `)


A. Fuel consumption

Cost of Coal Consumed (Steam) 71.110 67,15,58,30,286 78,76,18,31,744

Cost of Oil Consumed (Steam) 71.120 1,81,53,84,418 2,47,94,42,493

Cost of Gas Consumed 71.140 6,26,75,53,162 7,28,62,85,364(Internal Combustion)

Cost of Oil Consumed 71.150 3,41,338 2,64,99,418(Internal Combustion)

Other Fuel related Cost 71.2XX 15,71,77,875 26,21,99,000

Total (A) 75,39,62,87,080 88,81,62,58,019

B. Operating Cost

Cost of water 71.500 8,42,97,159 2,03,31,681

Lubricants and consumption store 71.600 5,89,19,934 8,59,12,109

Station Supplies 71.700 10,38,70,777 7,82,64,973

Other Cost 71.800 30,47,43,395 34,73,01,330

Fuel Related Losses 72.1XX-72.2XX 41,50,38,938 69,89,08,961

Total (B) 96,68,70,203 1,23,07,19,054

Total (A+B) 76,36,31,57,283 90,04,69,77,073

Less:- Cost of generation Capitalised 71.900 1,13,34,42,822 1,50,50,31,065

TOTAL 75,22,97,14,461 88,54,19,46,008

26.1 Details of Generation and Other Direct Expenses(Amount in ` )


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Plant & Machinery 74.1XX 2,82,07,82,420 2,64,13,61,386

Buildings 74.2XX 12,27,94,718 9,72,11,860

Civil Works 74.3XX 13,35,67,456 11,08,55,560

Hydraulic Works 74.4XX 74,39,400 50,06,158

Vehicles 74.6XX 21,76,600 23,62,513

Furniture & Fixtures 74.7XX 1,99,095 3,61,251

Office & Other Equipments 74.8XX 16,59,985 10,41,262

TOTAL 3,08,86,19,674 2,85,81,99,990

Less:- Repairs, Maintenance Expenses 74.900 3,59,51,699 4,53,75,674Capitalised

TOTAL 3,05,26,67,975 2,81,28,24,316

Note No. 27 : REPAIRS & MAINTENANCE(Amount in `)


(a) Salaries and incentives 75.000-400 2,23,59,80,564 2,06,29,00,997(Ref Note No.28.1) 75.612,615-619,

621-622

(b) Contributions to Terminal Benefits 75.800 1,89,70,76,864 25,36,34,259(including provident fund)

(c) Staff welfare expenses 75.609-611 10,97,98,722 5,95,04,855(Ref. Note no. 28.2) & 75.7

TOTAL 4,24,28,56,150 2,37,60,40,111

Less: Employee Cost Capitalized 75.900 13,48,51,717 14,43,59,534

TOTAL 4,10,80,04,433 2,23,16,80,577

Note No. 28 : EMPLOYEE BENEFITS EXPENSE(Amount in `)


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Basic Pay 75.100 87,44,68,845 79,64,15,838

Dearness Pay 75.000 68,48,458 1,74,90,646

Overtime 75.200 5,36,40,742 4,38,17,042

Dearness Allowances 75.300 89,03,57,431 77,17,46,609

Other Allowances 75.400 7,05,91,423 7,04,92,523

Exgratia 75.615 77,06,791 1,07,29,565

Leave Encashment 75.617 22,07,29,519 9,18,22,140

Tution Fee 75.618 28,308 -

Generation Incentive & Award 75.619 10,53,14,187 25,17,28,342

D.L.I. Nigam contribution 75.620 40,02,114 33,35,792

D.L.I. Admn. Charges 75.621 6,21,104 4,20,434

Salary of Ex Servicemen 75.625 8,99,496 37,46,707

ESI Admn. Charges 75.622 7,72,146 7,23,960

Interest on Un-paid salary and wages 75.613 - 4,31,399

TOTAL 2,23,59,80,564 2,06,29,00,997

28.1 Details of Salaries and Incentives(Amount in ` )


Medical Insurance Premium 75.609 12,30,500 9,59,363

Medical Reimbursement 75.610,75.611 1,37,97,889 1,27,94,175

Training Expenses 75.614 2,78,57,332 18,15,674

Medical Expenses-Dispensary inside plant 75.710 13,96,843 13,90,525

Medical Expenses-Dispensary inside colony 75.711 2,16,000 3,66,645

Education Expenses 75.730 4,86,68,118 2,49,27,679

Canteen Expenses 75.720 41,06,181 56,63,301

Uniform & Liveries 75.740 23,05,558 31,73,872

Soap & Duster 75.741 5,05,315 3,32,591

Safety Devices 75.742 15,19,358 1,41,000

Recreation Expenses 75.750 2,77,668 4,80,183

Other Welfare Expenses 75.760 78,91,284 74,54,847

Payment of Annuity Benefits 75.770 26,677 5,000

TOTAL 10,97,98,722 5,95,04,855

28.2 Details of Staff Welfare expenses(Amount in ` )


Standalone


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28.3 Disclosure as per Accounting Standard - 15 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 pensionto retired employees/to be retired employees. After unbundling a separate trust was created in2001 and fund available in the RSEB was transferred to Trust through Transfer Scheme and isbeing now funded regularly from the contribution by the successor entities.

2. During the year, in accordance with the provisions of AS-15- "Employees Benefits", acturialvaluation has been obtained in respect of liability of Pension, Gratutity and Leave Encashment.

3. As per provision of AS-15 "Employees Benefits" issued by ICAI, the defined benefit obligation(post retirement benefits) existing as on balance sheet date with break up in current year servicecost and past year service cost is required to charged to Statement of profit and loss of the yearconcerned. Similarly the assets created out of the corpus of the fund are also required to bevalued as fair value as on date of the balance sheet. As per AS 15, the value of the aforesaiddefined benefit obligations and its fair value of the aforesaid asset should be accounted for in theaccounts on the basis of actuarial valuation on the date of balance sheet. As per transfer schemeRVUN is to ensure that pension and gratuity trust are adequately funded to meet the paymentspertaining to the years of service rendered by the personnel.

4. As per AS-15- "Employee Benefits" states benefits involving employer established providentfunds, which require interest shortfall to be provided, are to be considered as defined benefitsplans.The obligation of the company is to ensure minimum rate of interest to the members asspecified by GOI.Such liability (if any) is not ascertained. Hence, effect in this respect has notbeen provided.“The contribution of ` 10,09,53,708/- (P.Y. ` 8,65,27,941/-) for the year isrecognised as expense and charged to Statement of Profit & Loss.

5. Liability of the pension amouting to ` 74,43,19,926/- (P.Y. ` 10,24,02,312/-) is recognised asexpenses of current year. This includes incremental liability of the pension as per actuarial valuationamounting to ` 64,20,64,116/- (P.Y. N.A.).The differiantial liability till 31-03-2015 of` 58,34,62,511 has been accounted for as prior period expenditure.

6. Liability of the gratuity amouting to ` 20,84,64,830/- (P.Y ` 6,39,55,874/-) is recognised asexpenses of current year. This includes incremental liability of the gratuity as per actuarial valuationamounting to 13,55,29,133/- (P.Y. N.A.).Further, since the fair value of plan asset in respect ofgratuity exceeds the present value of obligation as on 31.03.2015 as per acturial valuation,therefore, the net excess fair value of plan asset amouting to 1,11,63,53,890/- has been creditedto prior period expenditure.

7. Liability of the leave encashment amouting to ` 1,06,21,80,264/- (P.Y. ` 9,18,22,140/-) isrecognised as expenses of current year. This Includes incremental liability of the leave encashmentas per actuarial valuation amounting to ` 11,64,84,462/- for the FY 2015-16 and differiantialliability till 31-03-2015 of ` 84,14,50,745/- (also refer Note No. 34.5). Liability of leaveencashment benefits are unfunded.

Actuarial Assumptions:

Particulars Pension Gratuity LeaveEncashment

Discount Rate Mortality 8% 8% 8%

Valuation Methodology (Projected Unit (Projected Unit (Projected UnitCredit Method) Credit Method) Credit Method)

Future Salary Increases 8% 8% 8%

Expected Rate of Return on Plan Asset 8% 8% 8%


90

A. Changes in present value of defined benefit obligations as on 31.03.2016


Present Value of obligation as at the 5,81,77,23,023 1,27,40,68,742 84,14,50,745beginning of the period (31/03/2015) - - -

Interest cost 46,54,17,842 10,19,25,499 6,73,16,060 - - -

Past Service Cost - - -(5,88,75,28,723) (1,29,72,61,287) (88,22,43,631)

Current Service Cost 15,94,54,050 8,02,63,612 5,94,84,696(14,86,94,300) (6,78,07,455) (5,10,29,254)

Benefits Paid -24,41,00,000 -9,67,00,000 -10,42,45,057(-21,85,00,000) (-9,10,00,000) (-9,18,22,140)

Acturial (Gain) / loss on obligation 38,38,57,032 11,30,36,720 9,39,28,763- - (88,22,43,631)

Present value of obligation as at the end 6,58,23,51,947 1,47,25,94,573 95,79,35,207of Period (31/03/2016) (5,81,77,23,023) (1,27,40,68,742) (84,14,50,745)

Enterprise best estimate for expense next year is 6,78,28,939 - GratuityEnterprise best estimate for expense next year is 17,88,60,820 - Earned leave liability.Enterprise best estimate for expense next year is 80,90,23,668 - Pension.*The current year figures are tentative and subject to finalization and audit of Trust accounts.

B. Changes in Fair Value of Plan Assets as at 31.03.2016

Particulars Pension Gratuity

Fair value of Plan assets at the beginning of the period 3,77,28,00,000 1,38,89,00,000(3,58,73,00,000) (1305500000)

Expected Return on Plan asset 30,18,24,000 11,11,12,000(28,69,84,000) (10,44,40,000)

Employer Contributions 10,55,00,000 7,26,00,000(13,46,00,000) (8,08,00,000)

Benefits Paid -24,41,00,000 -9,67,00,000(-21,85,00,000) (-9,10,00,000)

Actuarial gain/(loss) on plan assets -55,24,000 -78,12,000(-1,75,84,000) (-1,08,40,000)

Fair value of Plan assets at the end of the period 3,93,05,00,000 1,46,81,00,000

(3,77,28,00,000) (1,38,89,00,000)

C. Amount recognized in Balance Sheet


Present value of obligation as at the end 6,58,23,51,947 1,47,25,94,573 95,79,35,207of Period (31/03/2016) (5,81,77,23,023) (1,27,40,68,742) (84,14,50,745)

Fair value of Plan assets at the end of 3,93,05,00,000 1,46,81,00,000 -the period (31/03/2016) (3,77,28,00,000) (1,38,89,00,000) -

Net Liability/Assets(-) recognized in 2,65,18,51,947 44,94,573 95,79,35,207Balance Sheet as provision (2,04,49,23,023) (-11,48,31,258) (84,14,50,745)


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D. Amount recognized in Statement of Profit & Loss


Current Service Cost 15,94,54,050 8,02,63,612 5,94,84,696(14,86,94,300) (6,78,07,455) (5,10,29,254)

Past service cost - - -(5,90,51,12,723) - (88,22,43,631)

Interest Cost 46,54,17,842 10,19,25,499 6,73,16,060- - -

Expected return on plan assets -30,18,24,000 -11,11,12,000 -(-28,69,84,000) (-10,44,40,000) -

Net acturial (gain) / loss recognised in 38,93,81,032 12,08,48,720 9,39,28,763the period - (1,30,81,01,287) -

Net amount recognized in P&L as on 71,24,28,924 19,19,25,831 22,07,29,51931/03/2016 (5,76,68,23,023) (1,27,14,68,742) (93,32,72,885)

Figures of previous year (in brackets) have been given to the extent available.

E. Other Disclosures

Pension 2015-16 2014-15

Present value of obligation as on 31st March 6,58,23,51,947 5,81,77,23,023

Fair value of Plan assets 3,93,05,00,000 3,77,28,00,000

Liability / Assets 2,65,18,51,947 2,04,49,23,023

Unrecognised past service cost - -

Liability / Assets(-) recognised in Balance Sheet 2,65,18,51,947 2,04,49,23,023

Gratuity 2015-16 2014-15



Liability / (Assets) 44,94,573 -11,48,31,258


Liability / Assets(-) recognised in Balance Sheet 44,94,573 -11,48,31,258

Earned Leave Liability 2015-16 2014-15

Present value of obligation as on 31st March 95,79,35,207 84,14,50,745

Fair value of Plan assets - -

Liability / Assets 95,79,35,207 84,14,50,745


Liability / Assets(-) recognised in Balance Sheet 95,79,35,207 84,14,50,745


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Interest expenses 78.100-78.729 29,99,22,73,236 24,12,92,67,266(Refer Note No.29.1)

Lease Rentals 78.891 1,11,12,730 1,11,638

Other Borrowing Cost 78.861 to 78.830 25,47,69,965 36,26,51,668(Refer Note No. 29.2)

TOTAL 30,25,81,55,931 24,49,20,30,572

Less: Finance Cost Capitalised 78.900 10,46,07,07,455 10,56,19,24,291

TOTAL 19,79,74,48,476 13,93,01,06,281

Note No. 29 : FINANCE COSTS(Amount in ` )


Interest on State Government Loans 78.100 18,98,46,000 18,98,46,000

Interest on Bonds 78.210 75,85,42,622 13,72,14,247

Interest on Loans fromFinancial Institutions:

-Interest on Loans from LIC 78.501 1,17,07,347 2,17,40,184

-Interest on Loans from REC 78.504 2,52,60,65,066 1,75,23,56,366

-Interest on Loans from NCRPB 78.512 3,42,98,630 5,17,98,630

-Interest on loans from World Bank 78.516 5,93,691 7,04,540

-Interest on loans from PFC 78.517 21,46,30,62,121 19,07,24,20,862

Sub-Total (A) 24,98,41,15,477 21,22,60,80,829

Interest on Short Term Loans from Banks:

Int. on WCL- PFC 78.701 1,90,90,47,599 65,70,86,195

Int. on WCL- REC 78.702 88,49,41,406 20,42,57,998

Int. on WCL- HUDCO 78.703 8,90,45,552 13,94,86,338

Int. on WCL- SBBJ 78.705 48,62,90,415 26,26,71,234

Int. on WCL- BOI 78.718 79,55,58,195 77,65,01,076

Int. on WCL- Others 78.72 (4,21,42,582) 10,48,53,042

Int. on WCL- Allahabad Bank 78.721 6,27,87,681 19,84,80,462

Int. on WCL- Indian Bank 78.722 3,90,62,047 7,86,41,754

Int. on WCL- ANDHRA Bank 78.726 - 2,93,13,199

Int. on WCL- Indian overseas Bank 78.729 78,35,67,446 45,18,95,139

Sub-Total (B) 5,00,81,57,759 2,90,31,86,437

Total (A to B) 29,99,22,73,236 24,12,92,67,266

29.1 List of Interest expense(Amount in `)


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Finance Charges:

Commitment Charges 78.866 21,363 4,51,272

Bank Charges for Remittance 78.881 22,18,971 2,13,788

Other Bank Charges 78.883 92,77,679 1,36,99,011

Guarantee Charges 78.884 23,39,57,946 19,18,12,242

Other Finance Charges 78.830 & 78.886 16,48,230 7,44,91,084

Other Bonds related charges 78.831 10,46,848 6,22,91,570

Deffered Revenue Exp.written-off 79.610 65,98,928 1,96,92,701

TOTAL 25,47,69,965 36,26,51,668

29.2 List of Other Borrowing Cost(Amount in ` )


29.3 Penal interest/commitment charges, if any, being part of the terms and conditions of the loan, have notbeen shown separately and are included in interest & finance charges.

29.4 During the year, Net Interest & Finance charge pertaining to projects under construction amountingto `10,46,07,07,455/- (P.Y. `10,56,19,24,291/-) have been capitalized. Further an amount of` 22,24,37,172/- (P.Y. 6,55,77,234/-) towards interest and finance charges has been charged to GLPLon pro-rata basis on the funds utilized for GLPL.

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Amortisation of lease hold lands 77.110 9,51,290 8,18,395

Depreciation on Building 77.120 82,74,39,512 61,84,09,577

Depreciation on Hydraulic Works 77.130 77,76,04,209 51,43,48,382

Depreciation on Other Civil Works 77.140 18,20,69,396 10,82,19,418

Depreciation on Plant & Machinery 77.150 8,71,40,60,345 7,74,11,57,222

Depreciation on lines and Cables Net Works 77.160 2,58,19,268 3,92,37,680

Depreciation on Vehicles 77.170 9,46,971 8,32,826

Depreciation on Fixtures & Furnitures 77.180 59,56,750 44,55,542

Depreciation on Office Equipments 77.190 86,25,141 1,02,96,487

Dep. on Capital spares at generating stations 77.230 3,41,69,363 2,22,89,985

Sub Total 10,57,76,42,245 9,06,00,65,514

Less:- Depreciation Capitalised 77.900 1,87,22,280 1,23,87,771

TOTAL 10,55,89,19,965 9,04,76,77,743

Note No. 30 : DEPRECIATION & AMORTISATION EXPENSES(Amount in ` )



94

Rent, Rates & Taxes 76.101-76.102 3,13,31,705 98,08,816

Licence & Registration fee of 76.103 35,79,111 1,37,05,535Plant & Machinery

Insurance on Fixed Assets 76.104 13,31,04,106 11,88,20,051

Insurance on Vehicles and Others 76.107&76.109 19,90,798 19,20,577

Security Service Charges 76.108 36,27,68,046 32,98,49,292

Telephone,Telex & EPABX Expenses 76.111&76.114 1,14,05,866 1,11,89,691

Postage & Telegrame 76.112 6,98,048 7,91,043

Legal Charges 76.121 1,02,54,497 2,02,16,634

Payment to Auditors 76.122

i) As Statutory Auditors 5,17,500 5,13,000

ii) For Reimbursement of Expenses 1,28,144 79,137

Consultancy Charges 76.123 7,84,36,865 10,62,14,875

Other professional charges 76.125 - 84,270

Tariff Fee 76.126 1,33,50,000 5,33,92,040

Conveyance expenses 76.131 10,00,918 8,01,258

Travelling expenses 76.132 70,54,366 59,86,632

Travelling allowance to employees 76.133 13,96,075 25,68,948

Vehicle Running expenses 76.135-76.139 10,43,08,222 12,36,04,038

Festival Expenses 76.148 61,782 -

Newspapers & magazines 76.150 94,788 73,614

Other miscellaneous expenses 76.151- 76.170, 7,87,52,224 5,05,80,83976.172-76.190,76.127-76.128

Expenditure on CSR Activities 76.171 42,64,006 83,18,369(Refer Note No.31.2)

Freight & Material related expenses 76.210 - 76.271 2,86,86,074 5,44,01,103

Sundry debit / credit balances written-off 77.571 & 79.120 8,524 (6,77,586)

SUB TOTAL 87,31,91,665 91,22,42,175

Less : Administration and other 76.900 12,71,86,177 18,25,28,426expenses capitalised

TOTAL 74,60,05,489 72,97,13,749

Note No. 31 : OTHER EXPENSES(Amount in ` )


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31.1 In absence of determination of rent of buildings of the company occupied by other successor companiesand 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 byRVPN & occupied by employees of RVUN and vice-versa, respectively. As regards Common facilities at


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Head Office building like Electricity, Telephone, Security charge & other misc. charges etc. are concerned,these are shared by all the five successor entities of erstwhile RSEB and the share of RVUN is 28% of theexpenditure.

31.2 A CSR Policy has been approved by the Board of Directors of the Company in its 182 meeting held on10.02.2011. As per the said policy an amount of ` 5,90,70,326/- is to be spent by the company till31 March 2016 (` 4,45,46,800/- till 31 March 2015) against CSR activities towards its running powerstations whereas the company has spent ` 2,17,29,706/- till 31 March 2016 (` 1,85,09,700/- till31 March 2015). Further, as per the said policy the company has also to spend towards capital expenditurerelated to new projects, the complete details & quantum thereof is yet to be ascertained.

A. Income relating to previous year :-

Fuel related gains 65.110 10,02,75,163 4,85,44,320

Prior Period Revenue from sale 65.200 1,99,75,47,198 -of power

Interest income 65.400 3,16,30,741 (5)

Excess Prov. For Dep.in P.P. 65.600 96,62,60,000 -

Other excess provision 65.800 4,09,80,254 12,90,714

Other income 65.900 5,23,36,236 44,490

Less: Prior Period Income Capitalised 65.950 (72,85,55,343) -

Sub Total (A) 2,46,04,74,249 4,98,79,519

B. Prior period expenses/loss :-

Interest & Finance Charges 83.2,7 13,23,33,578 (7,87,44,560)

Fuel related Loss 83.21,23 (43,50,03,337) 26,15,39,768

Operating expenses 83.300 8,66,80,652 (1,86,30,883)

Employees cost 83.500 (53,23,15,447) 62,29,666

Depreciation under Provided 83.600 4,76,22,133 4,74,28,626

Admn. & general expenses 83.820 43,88,704 4,05,29,360

Prior Period Expenses- FBT 83.830 - -

Material Related Expenses 83.840 62,44,359

Excess Revenue charged from Discoms in PY83.850 - -

Total (69,00,49,358) 25,83,51,977

Less: Prior Period Expenses Capitalised 83.900 7,28,193 2,95,85,318

Sub Total (B) (69,07,77,551) 22,87,66,659

TOTAL (A-B) 3,15,12,51,800 (17,88,87,140)

Note No. 32 : PRIOR PERIOD ITEMS(Amount in ` )



96

Net Profit after tax as per Statement of ` (9,38,96,22,586) (26,36,92,26,342)Profit and Loss attributable to EquityShareholders (a)

Weighted Average number of equity shares No. 7,73,63,61,045 7,04,23,34,356used as denominator for calculating EPS (b)

Earning Per Share (EPS) ` (1.21) (3.74)

Face Value per equity share ` 10 10

Note No. 33 : EARNINGS PER EQUITY SHARE (EPS) AND DILUTED EPS(Amount in ` )

Particulars Unit For the year ended For the year ended31st March, 2016 31st March, 2015

Basic and Diluted

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Note No. 34 : Other Disclosures

34.1. Capital commitments:-

a) The estimated amount of contracts remaining to be executed on capital account, and not providedfor (net of advances) is 77,65,28,47,260/- (P.Y. 1,23,22,00,76,252/-) as at 31.3.2016.

b) Other Commitments:-

(i) New/Future Power Projects:- The State Government has earlier entrusted the companyto create additional 4950 MW by setting up the following New Power Projects .Presentstatus of the same has been disclosed as under:-

S. Project Installed Project RemarksNo. Capacity cost

MW ` (In cr.)

1 Banswara Supercritical 660 X 2 7,920 Process for cancellation of theUnit 1&2 administrative and financial

sanction of the project is underconsideration and final view willbe taken by State cabinet.

2 Kalisindh Supercritical 660 X 2 7,920 A view has taken that looking toUnit 3&4 the present power scenario it is

felt that installation of proposedSupercritical Units-3&4 atKalisindh under Case-2 may bedeferred and same will bereviewed & decided at later stageas per the requirement of powerfor State.

3 Suratgarh Supercritical 660 X 2 7,920 No Preliminery action has beenUnit 9&10 initiated. Ceases to thirteenth

plan owing to heavy fueltransportation cost.

4 Kota Gas Thermal 3 X 110 1,320Project Ceases to thirteenth plan owing

5 Chhabra Gas Thermal 3 X 110 1,320 to heavy fuel transportation costProject and non availability of gas

6 Dholpur Gas Extension 3 X 110 1,320Stg-II

(ii) Provisional Disallowance of Capital Cost

While finalisation of the capital cost of new power project / Unit of the comapany,RERC has considered only 50% of overrun IDC and disallowed 50% LD. As thedisallowances are provisional subject to the approval of final capital cost of the Project/unit, the disallowed capital cost amounting ` 14,96,09,00,000/- at this stage has notbeen accounted for.

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34.2 Contingent liabilities :-

a) The company has outstanding bank guarantees given by the State Bank of Bikaner & Jaipur,State Bank of India and Bank of India in favour of following firms/companies/Ministry :-

S. No. Name of Bank In favour of Amount in ` Purpose

1 State Bank of Ministry of Coal 46,80,00,000 As security for allocation of CoalBikaner & Jaipur Govt. of India Blocks

president of IndiaActing throughministry of coalShastri BhawanNew Delhi.

2 State Bank of CMD South 5,29,20,000 For Coal supply to Chhabra Unit-IBikaner & Jaipur, Eastern Coal field (for security Deposits)Collectorate Ltd., BilaspurBranch, Jaipur

3 State Bank of M/s SECL 5,02,74,000 Coal supply to Suratgarh unit-VIBikaner & Jaipur (for Security Deposit)

4 State Bank of M/s SECL 3,96,90,000 Coal supply to Kota unit-VII (forBikaner & Jaipur Security Deposit)

5 State Bank of M/s SECL 1,08,10,800 Coal supply to KSTPS unit -7Bikaner & Jaipur,CollectorateBranch, Jaipur

6 State Bank of M/s SECL 2,38,21,200 Coal supply to CTPP unit -2Bikaner & Jaipur,CollectorateBranch, Jaipur

7 State Bank of SRCPL 4,73,85,800 For transportation of coal from coalBikaner & Jaipur block to Surajpur Road RailwayBanipark Station for further delivery of coal to

RVUN’s power stations.

8 State Bank of M/s SECL 2,85,76,800 For supply of Coal to CTPP unit-2Bikaner & Jaipur (as security Deposits)

9 SBBJ Collectorate Nominated 3,30,60,00,000 Parsa east & Kanta Basan coal MineBranch Jaipur authority, Ministry

of Coal, GoI

10 SBBJ Collectorate Under Secretary, 21,33,15,000 Kente Extension Coal BlockBranch Jaipur MoC, GoI

11 State Bank of India, The president of For making E-payment to ECR onExhibition Road, India, Represented account of Coal Supply at KTPS


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1 State Bank of M/s GAIL (India) 17,00,00,000 For Gas Supply to RGTPBikaner & Jaipur Ltd.

2 State Bank of M/s GAIL (India) 9,00,00,000 For Gas Supply to RGTP.Bikaner & Jaipur Ltd.

3 State Bank of M/s GAIL(India) 18,00,00,000 For Gas Supply at DCCPP.Bikaner & Jaipur Ltd.

4 State Bank of The president of 6,00,00,000 For E-payment of Railways Freight forBikaner & Jaipur India, Represented transportation of coal to thermal

through The FA & power projects of RRVUNL.CAO, South Eastcentral Railway,Bilaspur

5 Bank of India, M/s SECR 15,00,00,000 For E-payment of Railways Freight forJaipur transportation of coal to thermal

power projects of RRVUNL.

b) The company has outstanding letter of credit/IRLC issued by the State Bank of Bikaner &Jaipur in favour of following firms:

c) Claims against the company not acknowledged as debts as at 31.03.2016

(i) At KTPS, SSTPS and DCCPP, a disputed claim of `43,98,07,156/-, `3,07,00,000/- &`10,79,611/- respectively on account of water cess claimed by Rajasthan State PollutionControl 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 others demanded by SECL amounting to` 101,22,79,936/- & ` 38,13,34,884/- respectively. These claims are subject to

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Patna Branch, thought The FA &Bihar CAO, East Central

Railway, Hazipur,Bihar.

12 State Bank of India, The president of 3,46,23,000 For making E-payment to ECR onExhibition Road, India, Represented account of Coal Supply at SSTPSPatna Branch, Bihar thought The FA &

CAO, East CentralRailway, Hazipur,Bihar.

13 Bank of India Nominated 85,70,00,000 For Parsa Coal MineAuthority, Ministryof Coal, GoI

14 Dena Bank Under Secretary, 30,00,00,000 For Kanta Coal MineMoC,GoI


100

verification and reconciliation. Further such claims shall be admitted only after mutualdiscussions and acceptance of counter claim of RVUN by the other party.

(iii) Late payment charges of 39,85,57,126/- (P.Y. 3,45,33,943/-) booked by Parsa KenteCollieries Ltd (JV) as recoverable from company has not been booked since the saidclaim has not been acknowledged as debt by the company.

(iv) An appeal is pending before the Chief Controlling Authority (Stamps), Ajmer, against ademand of stamp duty & interest of 15,80,00,000/- levied by the Additional Collector(Stamps) Jaipur. For filing such appeal 25% of the demand i.e ` 3,95,00,000/- wasdeposited.

(v) The Indian Railway raised a demand of `36,19,58,000/- (P.Y. `83,15,00,000/-)unilaterally without any proper logic/justification on company for disallowances of rebateon To pay surcharge for non-maintaining of minimum advance balance by SSTPS withrailway.

(vi) M/s PKCL has claimed an amount of ` 78,00,00,000 (approx.) on account of Fixedcost and ` 6,10,00,000/- (approx.) on account of price escalation. The matter is undersubjudiced in the court, therefore, the liability has not been acknowledged by thecompany.

(vii) M/s SRCPL has raised claims ` 4,92,75,311 and also demanded interest on delayedpayment amounting to 63,04,445. Admissibility of the claims are still to be decidedby the company.

(viii) Liability on account of the matters under litigation has not been provided for, as claimsin respect thereof have not been entertained and are being contested. The total amountof liability which can reasonably be ascertained is 7,12,00,000/-. Other matter mostlypertains to the employees where the amount of probable liability/obligation is notascertainable.

(ix) Taxation matters for which liability is disputed and provision is not made (computed onthe basis of assessments/demand made by the department):

Particulars Amount in `

Other taxation matter for which company is in appeal. 8,66,66,479

The Income-tax assessment of the company completed upto Assessment year2013-14. Further appeal with the department is pending against the assessment orderfor the Assessment year 2001-02 to 2013-14.

The out flow on account of the claims against the company not acknowledged as debtsand tax disputes is contingent upon the decision of the courts/other authorities andmay differ from the amounts disclosed as contingent liability on the basis of estimates.

34.3 The Ministry of Coal vide letter dated 25.06.2007 allocated Parsa East and Kente Basan coal block to thecompany in the state of Chattisgarh to meet the coal requirement of the company's power projects.Subsequently a Joint Venture Company was formed with Parsa Kente Collieries Ltd. (Known as PKCL)with Adani Enterprises Ltd.

(a) A Coal Mining and Delivery Agreement (CMDA) were signed with the Joint venture. As per CMDA, theschedule date of commencement of coal supply was 25 June 2011; however the actual supply was

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commenced from 25 March 2013 due to force majeure agreed by the company. The Board in its 228thmeeting held on 28 August 2013 decided to extend the commencement of coal supply date from 25June 2011 to 25 March 2013 without levy of any penalty on Joint Venture Company. “The Joint VentureCompany has raised demand for price escalation amounting to 6,10,00,000/- (approx.) as the actualdate was shifted to 25 March 2013 and also claimed fixed charges amounting to ` 78,00,00,000/-(approx.) on account of short quantity lifted by RVUN. As the above dispute could not be resolved withinthe contractual provisions of CMDA. Therefore the above case was referred to Sole Arbitrator. The SoleArbitrator has passed Award on 27.05.2015 in favour of Joint Venture Company namely PKCL. TheCompany has filed application under section 34 of The Arbitration & Conciliation Act 1946 against thisaward. As above matter is subjudice in the court, therefore, the liability thereon cannot be assessedpresently.

(b) As per CMDA, interest shall be payable on overdue payment at the prevailing lending rate of interestcharged by SBI to RVUN for RVUN's working capital loan, in case the payment is not released within 15days plus 7 days grace period (totaling to 22 days). The interest will be payable only for the delayedperiod reckoned from 23rd day. The Joint Venture Company has raised demand of 39,85,57,126 till31st March, 2016 (` 3,45,33,943 till 31st March, 2015) for delayed payment. The Company has notassessed/quantify the interest liability presently. Such charges booked by PKCL as recoverable fromcompany but have not been booked by company since the said claim has not been acknowledged asdebt by the company.

34.4 Track Access & Usages Agreement for payment of track access charges on account of utilization ofprivate railway side developed by M/s Sarguja Rail Corridor Pvt. Ltd. (SRCPL) for transportation of coalfrom Parsa East & Kanta Basan. Kente Extension and Parsa Coal blocks to Surajpur Road Railwaystation for delivery of coal to RVUN's power station has been signed between RVUN and SRCPL on22.07.2015.

As per terms of Track Access & Usages Agreement, there is Take or Pay obligation for shortfall in off-takeof coal by RVUN. M/s SRCPL raised a debit note amounting to ` 4,92,75,311/- against Take or Payobligation of RVUN for a shortfall of coal in the off take quantity for the year 2015-16. Further M/sSRCPL has also raised interest claim amounting to ` 63,04,445/- on account of delay in payment.Admissibality of claim is still to be decided, therefore not acknowledge as debt by the company.

34.5 Disclosure as per Accounting Standard-1 on “Disclosure of Accounting Policies”

During the year, the company changes its accounting policy in respect to leave encashment from actualpayment to accrual. The company has started to follow provision of AS-15- “Employee Benefit” inrespect of leave encashment and adopted Actuarial Valuation. Due to this change, current year employeecost increase by ` 95,79,35,207/- (including ` 84,14,50,745/- till 31-03-2015) and profit for the yeardecreased by ` 95,79,35,207/-. Similarly, Liability of Long Term Provision and Short Term Provisionincreases by ` 86,46,79,259/- and 9,32,55,948/- respectively.

34.6 Note for Disinvestment

a) Chhabra TPP (4 x 250 MW) 1 to 4 under operation + 2 x 660 MW under execution

Approval of state cabinet received on 23.02.2016 for disinvestment of Chhabra TPP either toNTPC on direct negotiation route or Assets sale basis or through open competative bidding.Expression of Interest (EOI) and Preliminary Information Memorandum (PIM) have been issued.The transaction is targeted to be completed during the current financial year.

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b) Kalisindh TPP (2 x 600 MW) 1 and 2 under operation

Approval of state cabinet has been received for disinvestment of Kalisindh TPP on 23.02.2016.Further RVUNL is advised to initiate the process of appointment of transaction advisor for saleof KaTPP on similar line of CTPP.

34.7 RVUNL is engaged in the generation of electricity and selling thereof to the Distribution Companies.Generation of electricity is one and single product. Hence AS 17 “Segmental Reporting” is not applicableon RVUNL.

34.8 Disclosure as required by Accounting Standard 18 (AS-18) “Related Party Disclosures” issued by TheICAI are as follows :

(a) Names of the related party and description of relationship :

S. No. Related Party Where Control Exists Relationship

1 Chhabra Power Ltd.

2 Dholpur Gas Power Ltd Subsidiary

3 Giral Lignite Power Ltd Companies

4 Rajasthan State Coal Mining Co. Ltd.*

1 Parsa Kente Collieries Ltd Joint

2 Rajasthan Colleries Ltd. Venture

1 Sh. Narendra Mal Mathur, CMD DIN-030333751.04.2015 to 31.03.2016

2 Sh. Sanjay Malhotra, IAS, Director DIN-009927441.04.2015 to 31.03.2016

3 Sh. Praveen Gupta, IAS, Director DIN-035210061.04.2015 to 31.03.2016

4 Smt. Gayatri A Rathore, IAS, Director DIN-051962591.04.2015 to 31.03.2016

5 Sh. Prakash Chand Jain, Director (Projects) DIN-035451461.04.2015 to 31.08.2015

6 Sh. Arun Kumar Gupta, Director DIN-06948144 Key Managerial1.04.2015 to 31.03.2016 Personnel

7 Sh. Ashutosh Kr. Joshi, Director (Finance) & CFO DIN-070804341.04.2015 to 31.03.2016

8 Sh. S.S. Meena, Director (Technical) DIN-0331934619.08.2015 to 31.03.2016

9 Sh. Ram Gopal Gupta, Director DIN 0017393719.08.2015 to 31.03.2016

10 Sh. M.K. Agarwal, Director (Projects) DIN 0731604430.09.2015 to 30.03.2016

11 Sh. S G V S Subrahmanyam, Company Secretary AGDPS2124E01.04.2015 to 31.03.2016


Standalone


103

(b) Details of Transactions with subsidiary companies :

Particulars Amount (In `)

2015-16 2014-15i) Investment in Equity Contribution

Opening Balance 1,85,20,00,000 20,00,000Add: Investment made during the year (GLPL)(18,50,00,000 equity shares of 10/- each) 1,85,00,00,000 1,85,00,00,000Less: Investment in Rajasthan State Coal MiningCompany Limited written off during the year(50,000 equity shares of 10/- each) 5,00,000 -Closing Balance 3,70,15,00,000 1,85,20,00,000

ii) Other Receivable / (Payable)Chhabra Power LimitedOpening Balance (1,69,835) (1,84,987)Add: Received during the year - -Less: Paid during the year 17,100 15,152Closing Balance (1,52,735) (1,69,835)Dholpur Gas Power LimitedOpening Balance (1,69,414) (1,81,162)Add: Received during the year - -Less: Paid during the year 17,100 11,748Closing Balance (1,52,314) (1,69,414)Giral Lignite Power Limited (GLPL)*Opening Balance 5,80,65,59,674 7,95,34,83,053Add: Paid during the year 13,01,54,13,442 1,37,76,30,572Less: Received/Adjusted during the year 10,35,10,79,082 1,67,45,53,951Less: Adjusted against Investment 1,85,00,00,000 1,85,00,00,000Closing Balance 6,62,08,94,034 5,80,65,59,674

*Includes figures related to sale of business to the subsidiary (GLPL). Further substantial part ofoperations of GLPL is being sourced/funded by RVUNL.

c) Details of Transaction with Joint Ventures :

Particulars Amount (In `)

2015-16 2014-15

(i) Parsa Kente Collieries Limited

Service Received 5,93,39,47,254 2,67,36,43,864

Reimbursement of Expenses, Taxes & Duties Paid 13,64,85,52,424 6,72,38,98,545

Dues Payable at the year end of the year 5,92,48,06,264 2,36,29,17,628


104

d) Employees remuneration and benefits include remuneration to the Chairman & ManagingDirector and Directors are as follows :-

Particulars 2015-16 2014-15

Salary & Allowances 62,66,713 39,74,432

Contribution to provident Fund and 85,827 2,50,148other funds

Total 63,52,540 42,24,580

34.9 a) No earning in foreign exchange was accrued during the year.

b) The foreign exchange outgo during the year was 6,73,30,56,728/- (P.Y. 7,57,90,14,208/-)

c) Value of components, stores and spare parts consumed (including Fuel, lubricants, etc.)

Amount in ` )

Particulars % of total Current % of total Previousconsumption Year consumption Year

Indigenous 95.84% 74,12,67,32,887 85.77% 76,37,68,99,049

Imported 4.16% 3,21,60,23,442 14.23% 12,67,04,68,845

Total 100.00% 77,34,27,56,329 100.00% 89,04,73,67,894

34.10 The internal audit of the company is conducted by the Company’s own internal audit wing.

34.11 The Trade Receivables and Trade Payables balances are subject to reconciliation and confirmation.

34.12 As required by the Accounting Standard (AS-28) “Impairment of Assets” issued by the Institute of CharteredAccountants of India, the company has carried out the assessment of impairment of assets. There are noexternal/internal indicators which lead to any impairment of assets during the year.

34.13 During the year Commercial Operations (COD) of 600 MW (katpp-II) on dated 25.07.2015 was declared.

34.14 Licensed & installed capacities :-

Particulars Current Year Previous Year

Licensed capacity (MW) Not Applicable Not Applicable

Installed Capacity(MW) 5707.35 5232.35

34.15 a) Quantitative information in respect of Generation and Sale of Electricity:

(In Million Units)

PARTICULARS Units Generated Aux. Consumption Net Units Sold

A.Commercial Period

Coal 24,067.608066 2,329.459889 21,738.148177 (24,975.967793) (2,475.804641) (22,500.163152)

Gas 1,852.599200 110.497675 1,742.101525(2,313.192600) (104.895519) (2,208.297081)


105

Hydel 175.133204 1.249993 173.883211

(166.647001) (1.366864) (165.280137)

Sub-Total (A) 26,095.340470 2,441.207557 23,654.132913 (27,455.807394) (2,582.067024) (24,873.740370)

B. Pre-commercial 307.660000 39.820890 267.839110 Period (280.947571) (32.160274) (248.787297)

GRAND TOTAL 26,403.000470 2,481.028447 23,921.972023(A+B) (27,736.754965) (2,614.227298) (25,122.527667)

(Figures given in bracket are of previous year)

b) Quantitative information in respect of Sale of Fly Ash:

(QTY in MT)

Current Year Previous Year

19,19,947 12,85,000

34.16 Annual disclosure as per requirement of Listing Agreement for Debt Securities

With respect to Parent, Subsidiary and Associate Companies:

S.No. Particulars Remarks

a) Particulars of loans and advances in the Loan to GLPL-Subsidiary - ` 6,62,08,94,034/-nature of loan to Subsidiary, Associates (P.Y. ` 580,65,59,674/-)

b) Loans and advances in the nature ofloans where there is -

i) no repayment schedule or repayment There is no repayment schedule in case of loans beyond seven years and advance given to GLPL - Subsidiary

ii) no interest or interest below section Section 186 of the Companies Act, 2013 is not 186 of the Companies Act, 2013 applicable on Infrastructure Companies.

c) Investments by the Loanee (Borrower) in ` Nilthe shares of Parent company andsubsidiary company, when the companyhas made a loan or advance in thenature of Loan

34.17 Assets and liabilities are presented as current or non-current as per criteria set out in Schedule III of TheCompanies 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 periodhas been considered for the purpose of classification of assets and liabilities into current and non-current.

34.18 RERC vide Order dated 12.08.2015 has sanctioned additional capital cost for Giral Unit-1 & Unit-2, thesaid units already transferred to GLPL. Accordingly, GLPL recognised the same in the books of accountsof 2015-16 as Current Liability (payable to RVUN) for 94,79,36,501/- (` 88,95,33,545/- for Unit-2 &` 5,84,02,956/- for Unit-1) (Net of Amortisation) being expenditure charged to Statement of Profit &Loss by RVUN in earlier years and not passed on to GLPL. RVUN booked the same under the head“Income persuant to RERC Order” with corresponding accounting of receivable from GLPL. As per thesaid RERC Orders, Revenue of 94,79,36,501/- has been recognised during the year by the company.

34.19 Figures of the current & previous year have been rounded off to nearest Rupee.

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106

34.20 During the year some of the accounting policies have been added/ reworded/ redrafted/ modified forbetter presentation and to bring them in line with the accounting standards.

34.21 Previous year’s figures has been restated, regrouped and rearranged, wherever considered necessary, toconfirm to this year’s classifications. However these changes have no material impact on the FinancialStatements.





M.No. 3962 M.No. 072936



107

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”: Subsidiaries1 Sl. No 1 2 3 4

2 Name of the Subsidiary Giral Lignite Dholpur Gas Chhabra Rajasthan State CoalPower Ltd. Power Ltd. Power Ltd. Mining Company Limited

3 Reporting period for the subsidiary Same as that of Holding Companyconcerned, if different from the (1.04.2015 - (1.04.2015 - (1.04.2015 - (1.04.2015 -holding company’s reporting period 31.03.2016) 31.03.2016) 31.03.2016) 31.03.2016)

4 Reporting currency and Exchange rate NA NA NA NAas on the last date of the relevantFinancial year in the case of foreignsubsidiaries

5 Share capital 3,70,05,00,000 5,00,000 5,00,000 -

6 Reserves & surplus (4,66,49,39,793) (3,23,960) (3,21,639) -

7 Total assets 12,89,70,60,591 2,05,181 2,07,502 -

8 Total Liabilities 13,86,15,00,384 29,141 29,141 -

9 Investments - - - -

10 Turnover 90,43,20,645 - - -

11 Profit before taxation (1,38,38,65,753) (30,686) (30,553) -

12 Provision for taxation - -

13 Profit after taxation (1,38,38,65,753) (30,686) (30,553) -

14 Proposed Dividend - - - -

15 % of shareholding 100% 100% 100% -

Notes :

1 Names of subsidiaries which are yet to commence operations 1. Chhabra Power Ltd.

2. Dholpur Gas Power Ltd.

2 Names of subsidiaries which have been liquidated or sold during the year. 1. Rajasthan State Coal Mining Ltd.


108

Part “B”: Associates and Joint VenturesStatement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

(Amounts in `)

Sl.No. Name of Joint Ventures Parsa Kente RajasthanCollieries Ltd. Collieries Ltd.

1 Latest audited Balance Sheet Date 31.03.2016 31.03.2016

2 Shares of Joint Ventures held by the company on the year end

– In Nos. 130,000 130,000

– Amount of Investment in Joint Venture 1 1

Extent of Holding % 26% 26%

3 Description of how there is significant influence NA NA

4 Reason why the joint venture is not consolidated NA NA

5 Net worth attributable to shareholding as per latest audited Balance Sheet 1,50,76,686 6,95,570

6 Profit/Loss for the year 3,78,82,580 1,02,933

I Considered in Consolidation 98,49,471 26,763

II Not Considered in Consolidation 2,80,33,109 76,170

Notes:

1 Names of associates or joint ventures which are yet to commence operations. NIL

2 Names of associates or joint ventures which have been liquidated or sold during the year. NIL





M.No. 3962 M.No. 072936


RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LTD.(A Government of Rajasthan Undertaking)

CONSOLIDATEDFINANCIAL STATEMENT

2015-16


111 Consolidated


Ph. : 0141-2361559, +91-9829065332E-mail: [email protected]

INDEPENDENT AUDITOR'S REPORT

TOTHE MEMBERS OF RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of RAJASTHAN RAJYAVIDYUT UTPADAN NIGAM LIMITED (hereinafter referred to as "the Holding Company")and itssubsidiaries (the Holding Company and its subsidiaries together referred to as "the Group"), its associatesand jointly controlled entities , comprising of the Consolidated Balance Sheet as at 31st March, 2016,the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement for the yearthen ended, and a summary of the significant accounting policies and other explanatory information(hereinafter referred to as "the consolidated financial statements").

Management's Responsibility for the Consolidated Financial Statements

The Holding Company's Board of Directors is responsible for the preparation of these consolidatedfinancial statements in terms of the requirements of the Companies Act, 2013 (hereinafter referred to as"the Act") that give a true and fair view of the consolidated financial position, consolidated financialperformance and consolidated cash flows of the Group including its Associates and Jointly controlledentities in accordance with the accounting principles generally accepted in India, including the AccountingStandards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014. The respective Board of Directors of the companies included in the Group are responsible formaintenance of adequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Group and for preventing and detecting frauds and other irregularities; the selectionand application of appropriate accounting policies; making judgments and estimates that are reasonableand prudent; and the design, implementation and maintenance of adequate internal financial controls,that were operating effectively for ensuring the accuracy and completeness of the accounting records,relevant to the preparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement, whether due to fraud or error, which have been used for thepurpose of preparation of the consolidated financial statements by the Directors of the Holding Company,as aforesaid.


Our responsibility is to express an opinion on these consolidated financial statements based on ouraudit. While conducting the audit, we have taken into account the provisions of the Act, the accountingand auditing standards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.


112 Consolidated

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10)of the Act. Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the consolidated financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosuresin the consolidated financial statements. The procedures selected depend on the auditor's judgment,including the assessment of the risks of material misstatement of the consolidated financial statements,whether due to fraud or error. In making those risk assessments, the auditor considers internal financialcontrol relevant to the Holding Company's preparation of the consolidated financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in the circumstancesbut not for the purpose of expressing an opinion on whether the Holding Company has an adequateinternal financial controls system over financial reporting in place and the operating effectiveness ofsuch controls. An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Holding Company's Board of Directors,as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence obtained by us and the audit evidence obtained by the otherauditors in terms of their reports referred to in sub-paragraph (a) of the Other Matters paragraph below,is sufficient and appropriate to provide a basis for our qualified audit opinion on the consolidatedfinancial statements.

Basis for Qualified Opinion

A. Refer Annexure I (which forms an integral part of this report) which consist of matter relates toqualification and reservations of which effects is not ascertainable on financial statements thatconstituted the basis for modifying our opinion.

B. No provision in respect of interest on delayed payment and certain expenditure has been madeby RRVUNL which is payable as per coal supplies agreement/ other arrangement in respect offollowing:

a) Refer to Note 33.3 (c) (ii) of consolidated financial statement, that Claim of SECL of`13,936.14 Lacs towards interest till 31st March 2016 on delayed payment in respect ofcoal supplies. Out of this sum of ` 8,392.05 Lacs relates to current financial year.

b) Refer to Note 33.4 (b) of consolidated financial statement, that Claim of PKCL of` 3,985.57 Lacs towards interest till 31st March 2016 on delayed payment in respect ofMining Charges on coal supplies. Out of this sum of ` 3,640.23 Lacs relates to currentfinancial year.

c) Refer to Note 33.5 of consolidated financial statement, that Claim of SRCPL ` 63.04Lacs towards interest till 31st March 2016 on delayed payment in respect of MiningCharges on coal supplies. The whole amount relates to current financial year.

d) Refer to Note 33.5 of consolidated financial statement, that Claim of SRCPL of 492.75Lacs towards Take or Pay charges for track access till 31st March 2016 on short liftedquantity of coal. The whole amount relates to current financial year.


113 Consolidated

e) Company transfer Unit-2 (Stage-II) of Giral Lignite Thermal Power Station of thecompany to Giral Lignite Power Limited (GLPL), (a wholly owned subsidiary of thecompany) of which effective date of transfer was decided 01st April 2015 pursuant tothe decision of Board of Directors of the company dated 20.10.2014, which approvedsale consideration of ` 18,500 Lacs and consideration was proposed to be paid byGLPL through issue of equity shares.

The company has transferred the unit at net asset value of 2,978.62 Lacs instead of atapproved sale consideration of ` 18,500 Lacs and balance amount of ` 15,521.38Lacs incorrectly accounted as payable to GLPL, since GLPL has issued equity capitalof 18,500 Lacs to the company, which is not in accordance with the scheme of transferapproved, consequently gain on transfer of the unit of ` 15,521.38 Lacs has not beenrecognized and amount payable to GLPL 15,521.38 Lacs was incorrectly recognized(which are adjusted in the books with the short term loan and advance to GLPL ),which resulted in increase in loss for the year by `15,521.38 Lacs and decrease inIntangible assets with the same amount.

Effect of the above (a) to (e) results in following financial impact on consolidated financialstatements:

(` In Lacs)

Particulars Before Increase/ AfterQualification (Decrease) Qualification

Generation & Other Direct 756,526.97 12,588.07 769,115.04Expenses

Profit/(Loss) for the year (107,667.52) 2,933.31 (104,734.21)

Reserve & Surplus (541,907.67) 2,933.31 (538,974.36)

Intangible Asset-Goodwill NIL 15,521.38 15,521.38

Current Liabilities 806,586.84 12,588.07 819,174.91

Contingent Liabilities under 38,381.51 (12,588.07) 25,793.44Claim not acknowledge as debt

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, exceptfor the effects of the matters described in Para A & B of Basis for Qualified Opinion paragraph, theconsolidated financial statements give the information required by the Companies Act, in the matter sorequired and give a true and fair view in conformity with the accounting principles generally acceptedin India:

(i) in the case of consolidated Balance Sheet, of the state of affairs of the Company as on31st March, 2016;


114 Consolidated

(ii) in the case of consolidated Statement of Profit and Loss, of the Loss for the year ended on thatdate; and

(iii) in the case of the consolidated Cash Flow Statement, of the Cash Flows for the year ended onthat date.

EMPHASIS OF MATTER

1. Your attention is drawn to:

a) Note 11 of consolidated financial statement, that RRVUNL has Sundry Liabilities underhead Other Current Liabilities includes Admitted Account i.e. Unexpired Cheque issuedbut not presented for payment amounting to ` 2,657.47 Lacs which results inoverstatement of cash & cash equivalents and Other Current Liabilities with the sameamount.

b) Note 13.9 of consolidated financial statement, that RRVUNL had acquired 557.14 Bighaof land for Dholpur Gas Power Project from "M/s RPG Enterprise" through Govt. ofRajasthan. Out of which, 200.01 Bigha of Land is not yet allotted in favour of RRVUNLas it is appearing as forest land in the revenue records. Also, no title deed is executed infavour of Company.

c) Note 17.3 of consolidated financial statement, that RRVUNL has taken certain assetson lease. Out of these assets, the ownership of leased assets of the following entitieshave not been transferred in the name of RRVUNL after expiry of lease agreementsdue to pending litigation in court or in absence of power of attorney. The securitydeposit equivalent to residual value of the lease assets have already been depositedwith lessors' except M/s ICICI Ltd. for which payment will be made. The details are asunder:

(` in Lacs)

S.No. Name of Lessor Lease Value ResidualValue

1 M/s ICICI Ltd 8,400.00 84.00

2 M/s Indo Nissan Oxo Chemical Ltd. 623.34 155.83

Total 9,023.34 239.83

d) Note 23.1 of consolidated financial statement, that RRVUNL has Revenue from sale ofpower consist of late payment surcharge towards delayed payment by DISCOMsamounting to ` 32,184.08 Lacs which requires to be accounted as "Other Income"instead of "Revenue from Sale of Power" as a consistent practice.

e) Note 33.3 (c) (i) of consolidated financial statement, that at KTPS, SSTPS and DCCPP,a disputed liability of ` 4,398.07 Lacs, ` 307 Lacs and ` 10.79 Lacs respectively onaccount of water cess claimed by Rajasthan State Pollution Control Board (RSPCB) forwhich appeal has been filed before Chairman, RSPCB.


115 Consolidated

Due to pending outcome of litigations, no impact of the said disputed liability has beentaken in consolidated Financial Statements.

f) Note 33.3 (c) (iv) of consolidated financial statement, that the Additional Collector(Stamps) Jaipur, has raised the demand of stamp duty & interest of ` 1,580 lacs onfinalization of appeal against matter of levy of stamp duty on purchase of plant &machinery and loan documents executed RRVUNL. Further RRVUNL has filed therevised appeal before Chief Controlling Authority (Stamps), Ajmer against the saiddemand by depositing the 25% amount of demand i.e. ` 395 lacs.

Due to pending outcome of litigations, no impact of the said disputed liability has beentaken in consolidated Financial Statements.

g) Note 33.3 (C) (vi) & 33.4 of consolidated financial statement in respect of claim raisedby M/s Parsa Kente Collieries Limited (PKCL) on RRVUNL towards fixed cost amountingto ` 7,800 Lacs and towards Price Escalation amounting to ` 6100 Lacs for which noprovision has been made in the consolidated financial statement being subjudice.

h) Note 33.6 of consolidated financial statement, that change in accounting policy byRRVUNL in respect of Leave Encashment from actual payment to adoption of actuarialvaluation in line of AS-15 "Employee Benefit" resulted in current year employee costincrease by 9,579.35 Lacs (including 8,414.50 Lacs till 31.03.2015). Similarly Liabilityof Long term Provision and Short Term Provision increase by ` 8,646.79 Lacs and` 932.55 Lacs respectively.

Our opinion is not qualified in respect of above matters.

Other Matters:

(a) We did not audit the financial statements/ financial information of any of the subsidiaries, andjointly controlled entities, whose financial statements/ financial information reflect total assetsof ` 1487.07 Crores as at 31st March, 2016, total revenues of ` 239.94 Crores and net cashflows amounting to ` 86.02 crores for the year ended on that date, as considered in theconsolidated financial statements. These financial statements/ financial information have beenaudited by other auditors whose reports have been furnished to us by the Management andour opinion on the consolidated financial statements, in so far as it relates to the amounts anddisclosures included in respect of these subsidiaries, jointly controlled entities and associates,and our report in terms of sub-sections (3) and (11) of Section 143 of the Act, in so far as itrelates to the aforesaid subsidiaries, jointly controlled entities and associates, is based solely onthe reports of the other auditors.

Our opinion on the consolidated financial statements, and our report on Other Legal andRegulatory Requirements below, is not modified in respect of the above matters with respect toour reliance on the work done and the reports of the other auditors and the financial statements/financial information certified by the Management.


116 Consolidated

Report on Other Legal and Regulatory Requirements


a) We have sought and, except for the possible effect of the matters described in basis forQualified Opinion paragraph, obtained all the information and explanations which tothe 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 QualifiedOpinion paragraph, proper books of account as required by law have been kept so faras it appears from our examination of those books and the reports of the other auditors.;

c) The Consolidated Balance Sheet, Consolidated Statement of Profit and Loss andConsolidated Cash Flow Statement dealt with by this report are in agreement with thebooks of accounts.

d) Except for the possible effects of the matters reported in Basis of Qualified Opinionparagraph, In our opinion, the aforesaid consolidated financial statements comply withthe Accounting Standards specified under Section 133 of the Act, read with Rule 7 ofThe Companies (Accounts) Rules, 2013.The possible effects of the matters as reportedin Basis of Qualified Opinion which are summarized hereunder:-

AS-2: Valuation of Inventories;

AS-28: Impairment of Assets;

e) Being a Government Company, pursuant to the Notification No. GSR 463(E) dated5th June 2015 issued by Ministry of Corporate Affairs, Government of India, provisionsof sub-section (2) of Section 164 of the Companies Act, 2013, are not applicable to theHolding Company. Further, on the basis of the reports of the statutory auditors of itssubsidiary companies, and jointly controlled companies incorporated in India, none ofthe directors of the Group companies, and its jointly controlled companies incorporatedin India is disqualified as on 31st March, 2016 from being appointed as a director interms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reportingof the group and the operating effectiveness of such controls, refer to our separatereport in Annexure-II.

g) With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and tothe best of our information and according to the explanations given to us:

I. The Group has disclosed the impact of part of pending litigations on its financialposition in its consolidated financial statements Refer Note 33.3, 33.4 & 33.5 tothe consolidated financial statements.

II. The Group has made provision, as required under the applicable law oraccounting standards, for material foreseeable losses, if any, on long-term


117 Consolidated

contracts including derivative contracts except as reported in Basis of QualifiedOpinion.

III. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the group.

FOR OM Agarwal & CompanyChartered Accountant

FRN 000971C

(Kailash Chand Gupta)Place : Jaipur M.No.-072936Dated : September 7, 2016 Partner


118 Consolidated

ANNEXURE IANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE

CONSOLIDATED FINANCIAL STATEMENTS OF RRVUNL

(Referred to in "Basis for Qualified Opinion paragraph in the Independent Auditor's Report of evendate on consolidated account of RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED for theyear ended on 31st March, 2016)

1. ACCOUNTING OF CERTAIN ITEMS ON CASH BASIS

Refer to Note 1.15 "Significant Accounting Policies", There are certain items of Income and Expenditurewhich are accounted on cash basis instead of Accrual basis which is not in accordance with fundamentalaccounting assumption of AS-1 "Disclosure of Accounting Policies" issued by ICAI. The impact of thesame is not ascertainable on consolidated financial statement.


Refer to Note 33.13, the company has disclosed that impairment assessment has been carried out inrespect of its plant (cash generating units) and there is no indicator of any impairment of asset. Theabove fact is disclosed based on the plant's head certification which is not supported by any detailedworking of impairment study. Therefore, In absence of detail study of impairment, the effect of noncompliance of accounting standard and its effect on the consolidated financial statement is notascertainable.

3. FIXED ASSETS, CAPITAL WORK IN PROGRESS (CWIP) AND DEPRECIATION:

3.1 The Company at some units, is not having proper work wise/age wise/scheme wise details ofCapital Work In Progress which are mostly pertaining to old carried over balances of CWIP andthis includes material at site (usable and unusable) of which current status and existence of thesame not provided. Substantial delay in recognition of CWIP to Fixed Assets at respectiveprojects/units has been observed due to non issuance of Completion Certificate/ Report. Theimpact of the same to the extent of such non recognition (Capital/Revenue) in the consolidatedfinancial statement is not ascertainable.

3.2 Due to lack of proper internal control related to the capital works in progress and in absence ofproper reports of work completion and reconciliation of material issued and consumed, theinherent risk of "Fraud/Misuse" cannot be denied.

3.3 Long term Loans and Advances disclosed in Note No. 16 includes Advance to Suppliers &Contractors for Capital goods and Other Long term liabilities disclosed in Note No. 7 includesMisc. Deposits- Other consist of certain old and carried forward balances which are pending foradjustments and reconciliation. The Effect of the same on consolidated Financial Statements isnot ascertainable.

Considering the para 3.1 to 3.3 above, we are not able to comment about correctness of CWIP,Fixed assets and consequential effect on Depreciation and effect of the above on consolidatedfinancial statements.

4. LONG OUTSTANDING/UNRECONCILED BALANCES

4.1 DEBIT BALANCES

a) The Company is having Long Outstanding Debit Balances, which have not beenreconciled since long. Also, many credit balances are still lying in these account heads.In absence of proper information, explanations and details, we are unable to quantifythe same.

b) Balances with staff, Earnest Money Deposits, Security Deposits, Misc Deposits held,Current Liabilities and Provision, Advances to Contractors/Suppliers, etc. are subject toconfirmation and have not been fully reconciled. The balances with other Companies


119 Consolidated

of Board such as RRVPNL, JVVNL, AVVNL and JDVVNL are not reconciled for theyear 2015-16. As explained to us the same are under process. The effect of the same onthe consolidated Financial Statements is not ascertainable.

4.2 CREDIT BALANCES

a) The Company is having Long Outstanding Credit Balances, which have not been reconciledsince long. Also, some debit balances are lying in these account heads. In absence of properinformation, explanation and details, we are unable to quantify the same.

b) The Other Current Liabilities include ` 6.23 Lacs payable to M/s Indo Nissan on account oflease/rent expenses lying unpaid/unadjusted. This issue was also raised by C & AG in itsSupplementary Audit for the F.Y. 2010-11. We concur with the view of C & AG that the sameshould be written back in the books of Company. However, the Company has not fully adjustedsuch liability in F.Y. 2015-16 also.

c) Company's Liabilities for State Sales Tax, TDS, are subject to reconciliation.

d) The Company has not done reconciliation of Inter Company Accounts with other successorentities of erstwhile RSEB for period 2015-16. Financial impact, if any cannot be ascertainedand therefore the amount by which assets/liabilities/profit /loss, understated/overstated cannotbe quantified.

5. GENERAL/OTHER

5.1 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 byrespective departments of the company. The financial impact of the same which may arisecannot be reasonably quantified.

5.2 The payment against supply of Wash Coal at KTPS, Kota and STPS, Surargarh is made on thebasis of actual receipt of Coal. During the course of verification of details pertaining for WashCoal, cases have been observed where Actual Quantity of Wash Coal is in Excess of thatmentioned in Railway Receipt (RR). This has resulted into over payment to coal washeries beingpayment based upon the quantum of Actual coal received. The washeries are further benefitteddue to additional consideration of Normal Loss @.8% on standard basis irrespective of ActualWeight being in excess of Railway Receipt or Actual transit loss, as the case may be. The samecannot 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 000971C



120 Consolidated

ANNEXURE IIANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE

CONSOLIDATED FINANCIAL STATEMENTS OF RRVUNLReport on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act, 2013 ("the Act")In conjunction with our audit of the consolidated financial statements of the company as of and for the yearended 31st March 2016, We have audited the internal financial controls over financial reporting of RRVUNL(hereinafter referred to as "the Holding Company") and its subsidiary companies, its associate companies andjointly controlled companies, which are companies incorporated in India, as of that date.

Management's Responsibility for Internal Financial ControlsThe respective Board of Directors of the Holding company, its subsidiary companies, its associate companies andjointly controlled companies, which are companies incorporated in India, are responsible for establishing andmaintaining internal financial controls based on the internal control over financial reporting criteria established bythe company and the components of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design, implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to therespective 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 financialinformation, as required under the Companies Act, 2013.

Auditors' ResponsibilityOur responsibility is to express an opinion on the Company's internal financial controls over financial reportingbased on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the ICAI and the Standards on Auditing,issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extentapplicable to an audit of internal financial controls, 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 performthe audit to obtain reasonable assurance about whether adequate internal financial controls over financial reportingwas established and maintained and if such controls operated effectively in all material respects.


We believe that the audit evidence we have obtained is suffiecient and appropriate to provide a basis for ourqualified audit opinion on the company's internal financial control system over financial reporting.

Meaning of Internal Financial Controls Over Financial ReportingA company's internal financial control over financial reporting is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactionsand dispositions of the assets of the company;

2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles, and that receipts and expendituresof the company are being made only in accordance with authorizations of management and directors ofthe 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.


121 Consolidated

Inherent Limitations of Internal Financial Controls Over Financial ReportingBecause of the inherent limitations of internal financial controls over financial reporting, including the possibilityof collusion or improper management override of controls, material misstatements due to error or fraud mayoccur and not be detected. Also, projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial control over financial reporting maybecome inadequate because of changes in conditions, or that the degree of compliance with the policies orprocedures may deteriorate.Qualified OpinionAccording to the information and explanation given to us and based on our audit, the following material weaknesseshave been identified in Holding company and Subsidiary Company namely GLPL as at March 31, 2016:a) According to information and explanation given to us, Internal Audit of the company by company's

internal audit wing has not been carried out for the year under audit.b) According to information and explanation given to us, there is no system of physical verification of fixed

asset at regular interval. In absence of physical verification report, we are not in a position to commenton the discrepancies, if any in relation to the physical existence of the assets.

c) As per information & explanation given to us, there are no physical verification report of inventoriesavailable. In absence of physical verification report, we are not in position on 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 currentyear.

e) As per information & explanation given to us, there are certain issue with PKCL (Joint Venture) asreported in Basis of Qualified Opinion paragraph and Emphasis of Matter paragraph which are pendingdue to dispute which shows lack of internal control.

f) As per information & explanation given to us, there are certain long outstanding debit and credit balancesstanding 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 toconfirmation and reconciliation. This show lack of internal control.

g) There is no authentication and approval requirement in accounting software namely tally is enablewhich shows lack of internal control in accounting.

A material weakness is a deficiency, or a combination of deficiencies, in internal financial control over financialreporting; such that there is a reasonable possibly that a material statement of the company's annual or interimfinancial 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 ofthe objectives of the control criteria, the company has maintained, in all material respects, adequate internalfinancial controls over financial reporting and such internal financial control over financial reporting were operatingeffectively as of 31st March 2016 based on internal control over financial reporting criteria established by thecompany considering the essential components of internal control stated in the guidance note on audit of internalfinancial control over financial reporting issued by ICAI.We have considered the material weakness identified and reported above in determining nature, timing andextent of audit test applied in our audit of the March 31st 2016 on consolidated financial statements of thecompany and these material weakness do not affect our opinion on the consolidated financial statements of thecompany.


FRN 000971C



122 Consolidated

EQUITY AND LIABILITIES

Shareholders’ funds

Share Capital 1 87,31,09,00,000 72,88,59,01,000

Reserves & Surplus 2 (54,19,07,67,579) (43,42,40,15,286)

Share application money 3 - 2,98,49,99,000pending allotment

Fly Ash Utilisation Fund 4 73,95,98,963 27,29,94,121

Deferred Revenue on account 5 6,65,31,95,159 6,69,71,13,159of Advance against Depreciation

Non-current liabilities

Long-Term Borrowings 6 2,48,66,97,17,405 2,02,56,26,74,543

Other Long Term Liabilities 7 10,70,57,52,126 5,64,73,28,229

Long term Provisions 8 89,07,88,628 93,99,108

Current liabilities

Short-Term Borrowings 9 8,38,77,96,482 7,66,35,95,571

Trade Payables 10 18,14,07,89,970 15,33,53,59,491

Other Current Liabilities 11 51,37,13,90,619 35,03,25,07,551

Short-Term Provisions 12 2,75,87,09,909 2,47,39,65,505

3,81,43,78,71,682 3,08,14,18,21,992

ASSETS

Non-current assets

Fixed Assets

- Tangible Assets 13 1,98,60,95,95,724 1,64,75,32,59,521

- Intangible Assets 13 62,87,89,884 1,57,24,157

- Capital Work-In-Progress 14 92,97,50,31,686 80,48,69,32,941

Rate Regulatory Asset 13A 1,09,51,20,724 -

CIN - U40102RJ2000SGC016484CONSOLIDATED BALANCE SHEET AS AT 31st MARCH, 2016

(Amount in `)



123 Consolidated

(Amount in `)


Deferred Tax Assets (Net) 15 1,21,682 71,600

Long-Term Loans and Advances 16 9,88,43,53,812 13,29,31,15,281

Other Non-Current Assets 17 2,04,19,11,358 2,14,51,25,410

Current Assets

Inventories 18 8,83,90,22,233 11,25,89,61,859

Trade Receivables 19 57,02,19,25,384 27,99,14,15,077

Cash and Cash Equivalents 20 2,02,00,86,187 1,15,98,40,720

Short-Term Loans and Advances 21 3,15,93,31,928 2,25,87,09,184

Other Current Assets 22 5,16,25,81,080 4,77,86,66,243

3,81,43,78,71,682 3,08,14,18,21,992






M.No. 3962 M.No. 072936



124 Consolidated

Revenue:

Revenue From Operations 23 1,00,54,28,48,288 91,09,92,38,674

Other Income 24 38,71,08,968 30,80,46,728

Total Revenue 1,00,92,99,57,256 91,40,72,85,402

Expenses:

Generation & Other Direct Expenses 25 75,65,26,97,214 88,69,00,55,653

Repairs & Maintenance 26 3,17,37,95,033 2,93,57,06,403

Employee Benefits Expense 27 4,17,70,97,019 2,27,33,37,808

Finance Costs 28 20,84,74,49,973 14,23,48,87,197

Depreciation and Amortization Expense 29 11,42,78,37,261 9,42,55,75,023

Administrative and Other Expenses 30 80,17,24,376 75,89,86,587

Total Expenses 1,16,08,06,00,876 1,18,31,85,48,671

Profit before exceptional and extraordinaryitems and tax (15,15,06,43,620) (26,91,12,63,269)

Exceptional Items:

Income Pursuant to RERC Order(Refer Note No.33.25) 94,79,36,501 -

Profit before extraordinary items and tax (14,20,27,07,119) (26,91,12,63,269)

Extraordinary Items :

Rate Regulatory Income 24,33,52,411 -

Profit / (Loss) Before Prior PeriodItems and Tax (13,95,93,54,708) (26,91,12,63,269)

Prior Period Income/(Expenses) 31 3,19,80,41,076 11,95,74,310

Profit / (Loss) Before Tax (10,76,13,13,633) (26,79,16,88,959)

Tax Expense:

Current Tax 32,14,811 26,18,702

MAT Credit Entitlement 20,86,002 (26,12,080)

Income Tax (Earlier year tax) 1,87,931 -

Deferred Tax 15 (50,082) (71,600)

CIN - U40102RJ2000SGC016484CONSOLIDATED PROFIT AND LOSS STATEMENT

FOR THE YEAR ENDED 31st MARCH 2016

(Amount in `)

Particulars Note For the year For the yearNo. ended ended



125 Consolidated

(Amount in `)


PROFIT / (LOSS) FOR THE YEAR (10,76,67,52,294) (26,79,16,23,981)

Earnings Per Equity Share 32

Equity Share of Par Value 10/- Each

(1) Basic & Diluted (1.39) (3.80)






M.No. 3962 M.No. 072936



126 Consolidated

CIN - U40102RJ2000SGC016484Consolidated Cash Flow Statement for the year ended 31st March, 2016

PARTICULARS 2015-16 2014-15

Details Amount (in `) Details Amount (in `)

A. Cash Flow from Operating Activity

Net profit before tax as per Statement ofProfit & Loss (10,76,13,13,633) (26,79,16,88,959)

Adjusted for:

Transfer to Capital Reserve - -

Depreciation 10,50,91,99,394 9,48,54,88,201

Rebate received from PFC (19,00,25,927) (19,66,61,761)

Interest Expenditure 20,97,31,84,623 14,13,64,49,936

Increase in Fly Ash Utilisation Fund 46,66,04,842 27,29,94,121

Deferred Revenue on account of advanceagainst depreciation (4,39,18,000) (12,47,68,254)

Deferred Revenue Expenditure - W/off 65,98,928 1,96,92,701

Interest Income from Investments/Deposits (4,96,16,245) 31,67,20,27,615 (1,78,43,324) 23,57,53,51,620

Operating Profit before Working Capital Changes 20,91,07,13,983 (3,21,63,37,339)

Adjusted for:

(Increase)/Decrease in Long term Loans and Advances 32,03,671 37,33,898

(Increase)/Decrease in Deferred Revenue Expenditure (17,00,35,558) (40,76,63,523)

(Increase)/Decrease in Other non current assets 17,29,87,353 18,81,15,306

(Increase)/Decrease in Inventory 2,41,99,39,626 (5,41,31,20,587)

(Increase)/Decrease in Trade receivable (29,03,05,10,307) (16,81,55,04,964)

(Increase)/Decrease in Short term Loans and Advances (90,06,22,745) 1,11,94,29,028

(Increase)/Decrease in Other Current Assets (16,44,02,371) (2,92,98,01,367)

Increase/(Decrease) in Other Long term Liabilities 5,05,84,23,897 (70,47,20,628)

Increase/(Decrease) in Trade Payables 2,80,54,30,479 11,10,71,53,600

Increase/(Decrease) in Provisions 1,16,61,33,924 (28,89,14,068)

Increase/(Decrease) in Other Current Liabilities 4,20,36,91,462 (14,43,57,60,569) 1,28,62,96,601 (12,85,49,96,704)

Cash Generated from Operations 6,47,49,53,414 (16,07,13,34,043)

Less: Taxes paid 1,56,10,665 58,26,635

Net Cash Flow from Operating Activity (A) 6,45,93,42,749 (16,07,71,60,678)

B. Cash Flow from Investing Activity

Purchase of fixed assets (58,56,18,20,795) (44,71,03,52,859)

Advance against purchase of fixed assets 3,41,56,79,721 4,12,40,25,635

Income from Investments/Deposits (7,62,32,891) 2,68,38,957

Net Cash Flow from Investing Activity(B) (55,22,23,73,966) (40,55,94,88,267)

C. Cash Flow from Financing Activity

Proceeds from issue of share capital and shareApplication Money 11,44,00,00,000 8,81,50,00,000

Proceeds from Borrowing 92,35,23,93,555 60,57,65,50,621


127 Consolidated

Repayments of Borrowing (34,59,62,28,524)

Rebate Received From PFC 19,00,25,927 19,66,61,761

Interest Paid (19,76,29,14,274) (13,29,46,28,315)

Net cash Flow from Financing Activity (C) 49,62,32,76,683 56,29,35,84,067

Net increase/(decrease) in cash and cashequivalents (A+B+C) 86,02,45,467 (34,30,64,878)

Cash and cash equivalents at the beginning of the year 1,15,98,40,720 1,50,29,05,598

Cash and cash equivalents at the end of the year 2,02,00,86,187 1,15,98,40,720

Cash and Cash Equivalent includes:- (Refer Note No. 20)

Particulars As at 31.03.2016 As at 31.03.2015

Cash in hand 5,78,777 6,03,666

Money in transit (77,30,157) (59,06,795)

Balance With Scheduled Bank 1,32,54,08,275 1,16,50,85,831

CC Account 45,22,62,506 -


Balance in PD Account 30,000 30,000

Cash imprest with staff 28,018 28,018

Total 2,02,00,86,187 1,15,98,40,720

Note: Cash and Cash equivalents as at 31.03.2016 and 31.03.2015 include restricted Bank Balances of`31,42,77,958/- and 11,22,15,743/- respectively. These restrictions are primarily on account of cash and bankbalances held as margin money deposits against bank guarantee and Letter of Credit issued.





M.No. 3962 M.No. 072936



128 Consolidated

I. SIGNIFICANT ACCOUNTING POLICIES

1.1 BASIS OF CONSOLIDATION

A. The consolidated financial statements relate to Rajasthan Rajya Vidyut Utpadan Nigam Ltd.(the Company), its Subsidiaries and interest in Joint Ventures, together referred to as ‘Group’.

a) Basis of Accounting:

i) The financial statements of the Subsidiary Companies and Joint Ventures inthe consolidation are drawn up to the same reporting date as of the Companyfor the purpose of consolidation.

ii) The consolidated financial statements have been prepared in accordance withrequirement of section 129 read with schedule- III of the Companies Act 2013,Accounting Standard (AS) 21 - ‘Consolidated Financial Statements’ andAccounting Standard (AS) 27 – ‘Financial Reporting of Interest in Joint Ventures’as specified under section 133 of the Companies Act,2013 read with Rule 7 ofthe Companies (Accounts) Rules,2014 and generally accepted accountingprinciples.

b) Principles of consolidation:

The consolidated financial statements have been prepared as per the following principles:

i) The financial statements of the Company and its subsidiaries are combined ona line by line basis by adding together of the like items of assets, liabilities,income and expenses after eliminating intra-group balances, intra-grouptransactions, unrealized profits or losses.

ii) The consolidated financial statements include the interest of the Company injoint ventures, which has been accounted for using the proportionateconsolidation method of accounting and reporting whereby the Company’sshare of each asset, liability, income and expense of a jointly controlled entityis considered as a separate line item.

iii) The consolidated financial statements are prepared using uniform accountingpolicies for like transactions and other events in similar circumstances and arepresented to the extent possible, in the same manner as the Company’s separatefinancial statements except as otherwise stated in the significant accountingpolicies.

iv) The difference between the cost of investment and the share of net assets atthe time of acquisition of shares in the subsidiaries and joint ventures is identifiedin the financial statements as goodwill or capital reserve, as the case may be.

v) Minority interest in the net assets of consolidated subsidiaries consist of theamount of equity attributable to the minority shareholders.

1.2 General

(a) The financial statements of the Company have been prepared under historical cost conventionand in accordance with Accounting Standards specified under section 133 of the Companies


129 Consolidated

Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014, provisions of theCompanies Act, 2013, applicable provisions of the Companies Act, 1956, the provisions ofElectricity Act, 2003, to the extent applicable and generally accepted accounting principles inIndia as adopted consistently by the Company.

(b) The Company generally follows Mercantile System of Accounting and recognizes significantitems of income and expenditure on accrual basis except those with significant uncertainties andprice variation claims which are accounted for on cash basis.

(c) The preparation of financial statements in conformity with generally accepted accounting principalrequires the management to make estimates and assumptions that affect the income andexpenditure during the reporting period and the assets and liabilities including contingent liabilitiesas on the date of financial statements. Although such estimates and assumptions are made on areasonable and prudent basis taking into account all available information, actual results coulddiffer from these estimates and assumptions and such differences are recognised in the period inwhich the results are crystallized.

1.3 Fixed Assets and Depreciation

(a) i) The fixed assets are stated at cost, after reducing accumulated depreciation. All costsincluding financing costs till the commencement of the commercial productionattributable to acquisition/construction of fixed assets are capitalized.

ii) Expenditure on renovation and modernisation of fixed assets resulting in increased lifeand/or efficiency of an existing asset is added to the cost of related assets after confirmingto the norms of the Regulator.

(b) Since the Financial year 2014-15, in case of assets related to generation of electricity business,depreciation is being charged on straight line method following the rates and methodologynotified by the Rajasthan Electricity Regulatory Commission (Terms and Conditions forDetermination of Tariff) Regulations, 2014 generally in accordance with the provision of ScheduleII of the Companies Act, 2013. In case of assets related to other business, Depreciation of fixedassets is provided on straight line method at the rate and in the manner specified in schedule - IIof The Companies Act, 2013. W.e.f. April 1, 2014, the management has internally reassessedand changed, wherever necessary the useful lives to compute depreciation, to confirm to therequirements of schedule - II of the companies Act, 2013.

(c) In view of terms of agreement entered into by erstwhile RSEB with lessors, no depreciation ischarged on assets sold and leased back in the year 1994-95, 1995-96, 1996-97 and 1997-98,pertaining to generating stations.

(d) Depreciation on additions to/deductions from fixed assets during the year is charged on pro-ratabasis from/up to the day on in which the asset is available for use/disposal.

(e) Pending receipt of the completion reports in respect of capital works, the works completed aretransferred to fixed assets on the basis of the statements approved by the head of the project.

(f) Where the cost of depreciable assets has undergone a change during the year due to increase/decrease in long term liabilities on account of exchange fluctuation, price adjustment, change induties or similar factors, the unamortised balance of such asset is depreciated retrospectivelyfrom the commencement of the unit based on the applicable rates of depreciation.


130 Consolidated

(g) Leasehold Land is amortised over the period of the lease.

(h) In the case of assets put to use, where final settlement of bills with contractors is yet to beeffected, capitalization is done on provisional basis subject to necessary adjustment in the yearof final settlement.

(i) Intangible assets in the nature of mine development are amortized over a period of underlinecontract.

(j) Mining rights are treated as intangible assets and all related cost thereof are amortized on thebasis of actual annual quantity delivered to the total estimated mineable reserves as per approvedmines closure plan.

1.4 Fly Ash Utilization Fund

(a) Sale of fly ash are accounted for based on the rates agreed with the customers. Amountscollected are kept under separate account head “Fly Ash Utilization Fund” in accordance withthe gazette notification dated 3rd November 2009 issued by Ministry of Environment and Forests(MoEF), Government of India.

(b) Income earned on this fund, if any, is also credited to the fund.

(c) Expenses incurred by the company in relation to utilization of fly ash are charged to the “Fly AshUtilization Fund”.

1.5 Investments

(a) Long term investments are carried at cost less provision, if any, for permanent diminution invalue of such investments.

(b) Current investments are carried at lower of cost and fair value.

1.6 Stores and Spares

(a) Stores and spares have been valued at cost. Weighted average method has been used to workout the pricing of issues and valuation of inventories. Various equipment & materials which aremostly heavy and earmarked for specific works are issued/valued at cost.

Here the Company deviates from the Accounting Standard-2 “Valuation ofInventories” issued by ICAI which requires Inventories to be valued at the lower ofcost and net realisable value.

(b) The material lying at site for capital works are being shown as capital works in progress.

(c) The stock of low value items of consumables are not maintained and are fully charged to revenue.

1.7 Revenue Recognition

(a) Revenue from sale of power is accounted for on accrual basis and is billed on Discoms as per thepower station wise tariff approved by Rajasthan Electricity Regulatory Commission subject tofinalization of truing up order. In case of power stations where the final tariff rates are yet to beapproved, provisional rates as provided by the Regulator is adopted. The energy sold to eachDiscom is arrived at by apportioning the total units sold by all the power stations of RVUNLamongst JVVNL, AVVNL and Jd.VVNL in the approved ratio determined and conveyed by theGovernment of Rajasthan from time to time.


131 Consolidated

(b) 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 correspondingdepreciation charged.

(c) Any surplus or deficit arising as a result of truing up order on the basis of audited annual accountsis adjusted in the year of issue of truing up order by the RERC.

(d) Interest / Surcharge on late payment / overdue sundry debtors for sale of energy is recognized insale of power when there is significant certainty of recovery exist.

(e) Sale of scrap is accounted for as and when sold.

1.8 Foreign Exchange Transactions

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the yearend are translated at the year end rate and the difference in translation and realised gains and losses onforeign exchange transactions (other than for fixed assets) are recognised in the Statement of Profit andLoss.

1.9 Preliminary and Deferred Expenses

a) The premium, if any, paid to Financial Institutions / Banks on debt restructuring are deferredand charged to Statement of Profit and Loss over the balance period of the loan.

b) 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“Deferred Revenue Expenditure” to be charged off equally to the P&L, over the period of six/three years, based on the future economic benefits envisaged by the company as above.

1.10 Employee Benefits

(a) The Employee Benefits are accounted for as per the provision of AS-15 “Employees Benefits”issued by ICAI on the basis of categories in which the employees are covered namely definedcontribution plan & defined benefits plan.

(b) The benefit of Provident fund is covered under defined contribution plan. The employercontribution is recognised as expenditure in the statement of profit & loss.

(c) The employee benefits in respect of pension & gratuity liabilities are funded through trust on thebasis of contribution by RVUN along with other successor entities of erstwhile RSEB. Suchcontribution paid/payable is recognised in the statement of profit and loss.

(d) The benefits of pension, gratuity and leave encashment are covered under defined benefitsplan. Company’s liabilities towards pension, gratuity and leave encashment are determined byindependent actuary and accordingly recognised in statement of profit & loss. Liability for pension& gratuity as per actuarial valuation is paid/payable to a fund administered through a separatetrust.

(e) Short term employee benefits are recognized as an expense at the time of actual payment in thestatement of profit & loss.

1.11 Government Grants & Subsidies

Revenue subsidies and grants if any, received during the year from the Government of Rajasthan/Central


132 Consolidated

Government are treated as income and is shown separately in the Statement of Profit & Loss.

1.12 Cash Flow Statement

Cash Flow Statement is prepared in accordance with the Indirect Method prescribed in AccountingStandard (AS) 3 on 'Cash Flow Statements'.

1.13 Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is apresent obligation as result of past event and it is probable that there will be an outflow of resources.Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neitherrecognized nor disclosed in the financial statements. These are reviewed at each balance sheet date andare adjusted to reflect the current estimate.

1.14 Rate Regulated Activities

(a) Expenses/income recognized in the statement of Profit & Loss to the extent recoverable from orpayable to the beneficiaries in subsequent periods as per Rajasthan Electricity RegulatoryCommission (the RERC) Tariff Regulations are recognised as Regulatory asset /liability.

(b) Regulatory asset/liability is adjusted from the year in which the same becomes recoverable fromor payable to beneficiaries.

1.15 Miscellaneous

(a) Expenses on training and recruitment, research and development are charged to revenue.

(b) Expenses incurred on raising finance are being charged to revenue in the year in which these areincurred.

(c) Interest on loans and advances to staff is recovered after completion of recovery of principalamount and is recorded/accounted for on receipt basis.

(d) Claims for grade difference, shortage of coal etc. lodged on coal companies are accounted for asand when the credit notes are received by adjusting/recognizing the same in the Profit and Lossaccount in the year of its receipt, irrespective of the period to which it pertains. No provision ismade for above claims due to uncertainty of its receipt.

(e) Debit /credit notes on account of fuel (coal/gas/oil etc.) are accounted for as and when these arereceived irrespective of the period it pertains.

(f) The generation linked incentive and productivity award admissible to the officers/employees ofthe Power Stations are accounted for on cash basis.

(g) 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 shownas income and accordingly net interest is charged to Statement of Profit and Loss.

(h) Payment received against debtors from sale of power are adjusted/treated as per theirchronological order date i.e. old outstanding dues are cleared first.


133 Consolidated

Authorised Share Capital

10,00,00,00,000 (P.Y. 10,00,00,00,000) 1,00,00,00,00,000 1,00,00,00,00,000Equity Shares of 10/- each

Issued,Subscribed & Paid Up Share Capital

8,73,10,90,000 (P.Y.7,28,85,90,100) 87,31,09,00,000 72,88,59,01,000Equity Shares of `10/- fully paid up

TOTAL 87,31,09,00,000 72,88,59,01,000

Note No. 1 : SHARE CAPITAL

(Amount in `)


CIN - U40102RJ2000SGC016484II. NOTES ON CONSOLIDATED FINANCIAL STATEMENTS

SHAREHOLDERS’ FUNDS

1.1 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.

1.2 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.

1.3 Reconciliation of the number of Equity Shares

Particulars No. of Shares

2015-16 2014-15

At the beginning of the year 7,28,85,90,100 6,57,39,23,300

Add: Issued during the year 1,44,24,99,900 71,46,66,800

At the end of the year 8,73,10,90,000 7,28,85,90,100

1.4 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.


134 Consolidated

a) Capital Reserve

Opening Balance 2 2

Add: Transferred during the year - -

Less: Deduction During The Year - -

Closing Balance 2 2

b) Capital Reserve on consolidation 25,99,998 25,99,998

c) Surplus

Opening balance (43,42,66,15,286) (16,63,49,91,310)

Add: Net Profit / (Loss) after tax transferred (10,76,67,52,293) (26,79,16,23,976)from Statement of Profit & Loss

Closing Balance (54,19,33,67,579) (43,42,66,15,286)

TOTAL (a+b+c) (54,19,07,67,579) (43,42,40,15,286)

Note No. 2 : RESERVES & SURPLUS

(Amount in `)


Opening Balance 2,98,49,99,000 1,31,66,67,000

Add: Received during the year 11,44,00,00,000 8,81,50,00,000

Less: Share Capital issued during the year 14,42,49,99,000 7,14,66,68,000

Closing Balance - 2,98,49,99,000

Note No. 3 : SHARE APPLICATION MONEY PENDING ALLOTMENT

(Amount in `)


3.1 The Company is to issue Nil (P.Y.` 29,84,99,900/-) shares to Hon’ble Governor of Rajasthan at par value

of ` 10/- each. The company has sufficient authorised Share Capital to cover the Share capital amount

resulting from allotment of shares out of such Share Application Money.


135 Consolidated

Opening Balance 27,29,94,121 -

Add: Transfer from Sale (Refer Note No.23) 43,87,30,027 26,70,01,382

Transfer from Interest Income (Refer Note No.24) 2,78,74,815 59,92,739

Less: Utilised During the Year - -

Closing Balance 73,95,98,963 27,29,94,121

Note No. 4 : FLY ASH UTILISATION FUND

(Amount in `)


4.1 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 or facilities,

promotion and facilitation activities for use of fly ash until 100% fly ash utilization level is achieved. In

compliance with the said notification, the company has created a Fly Ash Utilization Fund in its books of

accounts to which the entire sale proceeds of fly ash for the year amounting to ` 43,87,30,027/- (P.Y.

` 26,70,01,382/-) and Interest earned on the fund amounting to 2,78,74,815/- (P.Y. 59, 92,739/-) has

been transferred.

5.1 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.

Opening Balance 6,69,71,13,159 6,82,18,81,413


Less: Transferred to Statement of Profit and Loss 4,39,18,000 12,47,68,254

Closing Balance 6,65,31,95,159 6,69,71,13,159

Note No. 5 : DEFERRED REVENUE ON ACCOUNT OFADVANCE AGAINST DEPRECIATION

(Amount in `)



136 Consolidated

A. Bonds

i) Secured - -

ii) Unsecured

State Government Guaranteed, Redeemable, 8,50,00,00,000 8,50,00,00,000Non-Convertible Taxable Bonds in the natureof Debenture (Private Placement)

See Description Note (i)

B. Term Loans

i) From Banks

- Secured See Description Note (ii) 1,83,33,00,000 4,13,50,00,000

- Unsecured See Description Note (iii) 4,33,32,00,000 11,49,92,00,000

ii) From Others

- Secured See Description Note (iv) 2,29,75,92,47,649 1,73,34,33,83,520

- Unsecured See Description Note (v) 4,24,39,69,756 5,08,50,91,023

TOTAL 2,48,66,97,17,405 2,02,56,26,74,543

Note No. 6 : LONG-TERM BORROWINGS

(Amount in `)


NON-CURRENT LIABILITIES

(i) 9.00% Redeemable Bonds 2014-15 10,00,000 5,50,00,00,000 5,50,00,00,000(Kalisindh Unit - II)

(30%, 30% and 40% redeemable at par atthe end of 10th, 11th and 12th yearrespectively from deemed date of allotmenti.e. 24.12.2014.)

(ii) 8.74% Redeemable Bonds 2014-15 10,00,000 3,00,00,00,000 3,00,00,00,000(Kalisindh Unit - II)

(30%, 30% and 40% redeemable at par atthe end of 10th, 11th and 12th yearrespectively from deemed date of allotmenti.e. 26.03.2015.)

8,50,00,00,000 8,50,00,00,000

(i) Descriptive details for Unsecured Public Bonds

(Amount in `)

S. Bonds Face As at As atNo. Value 31st March, 2016 31st March, 2015


137 Consolidated


9.00% Redeemable Bonds 2014-15 10,00,000 - -

8.74% Redeemable Bonds 2014-15 10,00,000 - -

- -

TOTAL 8,50,00,00,000 8,50,00,00,000

(Amount in `)

S. Bonds Face As at As atNo. Value 31st March, 2016 31st March, 2015

(i) State Bank of Bikaner & Jaipur

Term Loan-I **** 1,00,00,00,000 1,00,00,00,000

(Repayable in remaining 2 half yearlyinstallments of `33,33,00,000/- and 1 halfyearly installment of ` 33,34,00,000/- upto16.04.2017)

Term Loan-II **** 1,50,00,00,000 1,50,00,00,000

(Repayable in remaining 3 half yearlyinstallments of `50,00,00,000/- upto14.08.2017)

Term Loan-III **** 1,50,00,00,000 1,50,00,00,000

(Repayable in remaining 3 half yearlyinstallments of ` 50,00,00,000/- upto12.02.2018)

Sub Total (i) 4,00,00,00,000 4,00,00,00,000


State Bank of Bikaner & Jaipur 2,16,67,00,000 -

TOTAL 1,83,33,00,000 4,00,00,00,000

(ii) TERM LOAN FROM

Loan from OBC (Repaid in F.Y. 2015-16) - 8,50,00,000

Loan from Canara Bank (Repaid in F.Y. 2015-16) - 5,00,00,000

Sub Total (ii) - 13,50,00,000


State Bank of Bikaner & Jaipur - -

TOTAL 1,83,33,00,000 4,13,50,00,000

(ii) Descriptive details of Term Loan from Banks - Secured Borrowings

(Amount in `)

S. TERM LOAN FROM As at As atNo. 31st March, 2016 31st March, 2015


138 Consolidated

(i) Allahabad Banka. Term Loan I *** - 33,28,00,000

(This Loan has been repaid during the Financial Year2015-16)

b. Term Loan II *** - 58,28,00,000


(ii) Indian Bank

Term Loan I *** 16,60,00,000 49,96,00,000

(Repayable in remaining 1 quarterly installment of`8,34,00,000/- and 1 quarterly installment of` 8,26,00,000/- upto 04.08.2016)

(iii) Indian Overseas banka. Term Loan I *** 2,50,00,00,000 2,50,00,00,000

(Repayable in remaining 1 quarterly installment of` 83,34,00,000/- and 2 quarterly installments of` 83,33,00,000/- upto 15.07.2017)

b. Term Loan II *** 4,00,00,00,000 4,00,00,00,000

(Repayable in remaining 2 quarterly installments of` 1,33,33,00,000/- and 1 quarterly installment of` 1,33,34,00,000/- upto 15.10.2017)

(iv) Bank of India

a. Term Loan I *** 66,66,00,000 2,00,00,00,000

(Repayable in remaining 1 half yearly installment of` 66,66,00,000/- upto 27.09.2016)

b. Term Loan II *** 1,66,66,00,000 2,50,00,00,000

The sanction amount of Loan is 2,50,00,00,000/-.

(Repayable in 2 half yearly installments of` 83,33,00,000/- upto 28.03.2017)

c. Term Loan III *** 2,50,00,00,000 2,50,00,00,000

(Repayable in 2 half yearly installments of` 83,33,00,000/- and 1 half yearly installment of` 83,34,00,000/- upto 17.06.2017)

Total 11,49,92,00,000 14,91,52,00,000


Allahabad Bank Term Loan-I - 33,28,00,000

Allahabad Bank Term Loan-II - 58,28,00,000

(iii) Descriptive details of Term Loan from Banks - Unsecured Borrowings

(Amount in `)



139 Consolidated

(Amount in `)


Indian Bank 16,60,00,000 33,36,00,000

Indian Overseas bank Term Loan-I 1,66,67,00,000 -

Indian Overseas bank Term Loan-II 1,33,34,00,000 -

Bank of India Term Loan-I 66,66,00,000 1,33,34,00,000

Bank of India Term Loan-II 1,66,66,00,000 83,34,00,000

Bank of India Term Loan-III 1,66,67,00,000 -

Total 7,16,60,00,000 3,41,60,00,000

GRAND TOTAL 4,33,32,00,000 11,49,92,00,000

** Secured by Government Guarantee*** Secured by Government Guarantee and Default Escrow**** Secured by Government Guarantee, Default Escrow and pari-passu on current assets.

(i) LIC Loan (STPS)a. Term Loan - I No. 150172121 - 5,36,66,662


b. Term Loan - II No. 150172131 3,46,26,662 6,92,53,329

(Repayable in remaining 1 yearly installments of` 3,46,26,662/- upto 15.07.2016, Secured againstcharge on Asset and Escrow Account)

c. Term Loan - III No. 150172141 2,66,67,066 4,00,00,366


d. Term Loan - IV No. 150172151 3,33,32,000 4,99,98,000


Sub Total (i) 9,46,25,728 21,29,18,357

(ii) REC Loan

a. The sanction amount of Loan is 9,61,76,00,000/-.(CTPP - Units III and IV)

(Repayable in remaining 47 quarterly installments of 7,80,40,27,790 8,46,82,00,374

(iv) Descriptive details of Term Loan from others - Secured Borrowings

(Amount in `)



140 Consolidated

(Amount in `)


`16,60,43,145/- upto 31.12.2027, Secured againstParipassu charge on Asset and Default Escrow)

b. The sanction amount of Loan is 25,32,24,00,000/-. 11,69,97,60,267 4,46,39,65,644(STPS - Units VII and VIII)

(Repayable in remaining 60 quarterly installmentsof 42,20,40,000/- upto 30.9.2032, Secured againstParipassu charge on Asset and Default Escrow)

c. The sanction amount of Loan is 25,30,00,00,000/-. 10,69,16,76,201 4,38,08,25,771(CTPP - Units V and VI)

(Repayable in remaining 60 quarterly installmentsof 42,16,66,667/- upto 30.9.2032, Secured againstParipassu charge on Asset and Default Escrow)

Sub Total (ii) 30,19,54,64,257 17,31,29,91,789

(iii) PFC Loan

a. Term Loan - I No. 7301013 - Dholpur 2,24,07,48,786 2,88,09,62,725

(Repayable in remaining 14 quarterly installmentsof 16,00,53,485/- upto 15.07.2019, Default Escrowand Hypothecation of Assets)

b. Term Loan - II No. 7301014 - CTPP (Units I & II) 7,94,94,38,526 8,88,46,66,585


c. Term Loan - III No. 7301015 - GLTP (Unit II) - 2,79,30,00,000

(Tranfer to GL PL)

d. Term Loan - IV No. 7301016 - STPS (Unit VI) 3,49,99,99,985 3,89,99,99,990


e. Term Loan - V No. 7301017 - KTPS (Unit VII) 3,43,45,27,032 3,85,08,33,342


f. Term Loan - VI No. 7301018 - CTPP (Unit I & II) 5,74,04,90,735 6,41,58,42,586


g. Term Loan - VII No. 7301019 - KaTPP (Unit I & II) 62,54,42,94,990 65,83,61,00,000

(Repayable in remaining 57 quarterly installmentsof ` 1,09,72,68,333/- upto 15.04.2030, DefaultEscrow and Hypothecation of Assets)


141 Consolidated

(Amount in `)


h. Term Loan - VIII No. 7301020 - Chhabra (Unit II) 13,67,46,40,004 14,65,14,00,000


i. Term Loan - IX No. 7301021 - STPS (Unit VI) 2,01,55,91,033 2,24,59,44,294


j. Term Loan - X No. 7301022 - Giral (Unit II) - 2,17,02,18,670

(Tranfer to GL PL)

k. Term Loan - XI No. 7301023 - RGTP (Unit III) 6,52,66,66,663 7,00,13,33,334

(Repayable in remaining 55 quaterly installments of` 11,86,66,667/- upto 15.10.2029, Default Escrowand Hypothecation of Assets)

l. Term Loan - XII No. 7301026 - RGTP (Unit IV) 1,93,07,29,762 1,70,54,40,686


(Repayable in 60 quarterly installments of` 88,33,333/- upto 15.10.2032, Default Escrowand Hypothecation of Assets)

m. Term Loan - XIII No. 7301024 - STPS (Units VII and 35,23,10,95,736 24,11,92,71,875VIII)


(Repayable in 60 quarterly installments of` 63,30,00,000/- upto 15.04.2032, Default Escrowand Hypothecation of Assets)

n. Term Loan - XIV No. 7301025 - CTPP (Units V and 32,27,66,28,867 15,41,17,49,262VI)



o. Term Loan - XV No. 7304005 - KTPS (Addl. 1,88,75,95,604 1,28,58,98,834Capitalisation)


(Repayable in 60 quarterly installments of` 4,56,16,667 upto 15.01.2031, Default Escrow andHypothecation of Assets)

p Term Loan - XVI No. 7304006 - STPS (Addl. 32,15,03,484 17,50,00,000Capitalisation)


142 Consolidated

(Amount in `)


The sanction amount of Loan is ` 2,73,70,00,000/-.

(Repayable in 60 quarterly installments of`1,90,21,667/- upto 15.01.2032, Default Escrowand Hypothecation of Assets)

q Term Loan - XVII No. 7324001 (Buyer's Line Credit) 4,38,11,27,883 76,79,05,559



r Term Loan - XVIII No. 7365001 21,00,00,00,000 -


(Repayable in 28 quarterly installments of` 75,00,00,000/- upto 15.01.2026, State Govt.Guarantee and Default Escrow.)

Sub Total (iii) 2,04,65,50,79,090 1,64,09,55,67,742

(iv) PFC Loan

a. Term Loan - I No. 7301012 - GLPL (Unit- I)

(Repayable in remaining 10 quarterly installments 76,24,99,996 1,06,74,99,991of ` 7,62,50,000/- upto 15.07.2019, State Govt.guarantee and Default Escrow)

b. Term Loan - II No. 7301015 - GLPL (Unit- II) 2,20,50,00,002 -

(Repayable in remaining 30 quarterly installmentsof 7,35,00,000/- upto 15.07.2024, Default Escrowand hypothecation of assets)

c. Term Loan - II No. 7301022 - GLPL (Unit- II) 1,71,33,30,530 -

(Repayable in remaining 30 quarterly installmentsof 5,71,11,018/- upto 15.07.2024, Default Escrowand hypothecation of assets)

Sub Total (iv) 4,68,08,30,528 1,06,74,99,991

Total (i+ii+iii+iv) 2,39,62,59,99,603 1,82,68,89,77,879


LIC Loans 6,46,25,962 11,82,92,629

REC Loans 66,41,72,580 66,41,72,579

PFC Loans 9,13,79,53,412 8,56,31,29,151

9,86,67,51,954 9,34,55,94,359

GRAND TOTAL 2,29,75,92,47,649 1,73,34,33,83,520


143 Consolidated

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

(Amount in `)


(i) PFC Loan ***

a. Term Loan - VII No. 7304004 - KTPS - 76,02,616(Renovation & Modification)


Sub Total (i) - 76,02,616

(ii) HUDCO Loan***

a. Term Loan - II No. 19960 50,00,00,000 90,00,00,000

(Repayable in remaining 5 quarterly installments of` 10,00,00,000/- upto 31.05.2017)

Sub Total (ii) 50,00,00,000 90,00,00,000

(iii) World Bank Loan (KTPS - Units I to VI)

a. Cash Loan 10,11,113 11,84,171

(Repayable in remaining 50 monthly installments of` 17,306/- and 10 installments of `14,584/- upto15.03.2022)

b. PPF Advance 33,79,910 41,04,149

(Repayable in remaining 10 monthly installments of` 72,424/- , 10 monthly installments of ` 68,651/- ,20 monthly installments of ` 59,750/-, 10 monthlyinstallments of ` 53,037/- ,10 monthly installmentsof ` 24,378/- upto 15.03.2022)

Sub Total (iii) 43,91,023 52,88,320

(iv) State Govt. Loan (13.75%) (STPS - Units I to V) 1,38,07,00,000 1,38,07,00,000

(Terms of repayment of such loan shall be decidedby the Govt. of Rajasthan)

Sub Total (iv) 1,38,07,00,000 1,38,07,00,000

(v) National Capital Region Planning Board *** 20,00,00,000 40,00,00,000(KTPS Unit - VII)

(Repayable in remaining 1 Yearly installments of` 20,00,00,000/- upto 19.03.2017)

Sub Total (v) 20,00,00,000 40,00,00,000

(vi) REC Loan *** -

a. Loan No. 57-8456

(Repayable in 17 monthly installments of 1,50,00,00,000 1,50,00,00,000` 8,33,33,333/- and 1 monthly installmentof ` 8,33,33,339/- upto 30.09.2017)


144 Consolidated

(Amount in `)


b. Loan No. 57-8982

(Repayable in 17 monthly installments of 1,50,00,00,000 1,50,00,00,000` 8,33,33,333/- and 1 monthly installmentof ` 8,33,33,339/- upto 28.02.2018)

c. Loan No. 57-9353

(Repayable in 17 monthly installments of 1,50,00,00,000 -` 8,33,33,333/- and 1 monthly installmentof ` 8,33,33,339/- upto 31.07.2018)

d. Loan No. 57-9442

(Repayable in 4 monthly installments of 2,22,22,22,220 -` 55,55,55,555/- upto 15.06.2016)

(vii) Loan from Adani Enterprise Ltd 97,76,023 -(Holding Co. of RCL)

(Loan is received for long term purposes and it carriesan interest rate of 12% p.a. As per agreement it willlbecome repayable after 2 years, which may beextended for further period.)

Sub Total (vi+vii) 6,73,19,98,243 3,00,00,00,000

Total (i to vii) 8,81,70,89,266 5,69,35,90,936


National Capital Region Planning Board 20,00,00,000 20,00,00,000

World Bank Loan Cash Loan 1,73,058 1,73,058

PFC Loan - 76,02,616

REC Loan 3,97,22,22,213 -

World Bank Loan PPF Advance 7,24,239 7,24,239

HUDCO Loan 40,00,00,000 40,00,00,000

4,57,31,19,510 60,84,99,913

GRAND TOTAL 4,24,39,69,756 5,08,50,91,023

** Secured by Government Guarantee.

*** Secured by Government Guarantee and Default Escrow.


145 Consolidated

Trade Payables - -OthersSecurity Deposits from Contractors 2,90,64,03,746 1,57,22,79,481Retention Money 7,21,22,53,251 3,70,19,85,797E.M.D. 77,08,360 1,19,05,490M.D.- Others 32,97,19,026 10,93,12,881Stale Cheques 13,25,230 11,82,983Misc Deposits - Others (Refer Note No.7.1) 24,83,42,513 25,06,61,597TOTAL 10,70,57,52,126 5,64,73,28,2297.1 Misc. deposit- Others includes ` 24,95,08,767/- related to escrow account for mines closure received fromM/s PKCL.

Note No. 7 : OTHER LONG TERM LIABILITIES(Amount in `)


Provision for Employee BenefitsProvision for Leave Encashment 86,48,01,492 1,17,451Provision for gratuity 1,52,403 1,06,249Provision for Liability for Works 2,58,34,734 -Provision for liability for expense - 91,75,408TOTAL 89,07,88,628 93,99,108

Note No. 8 : LONG TERM PROVISION(Amount in `)


a) Loans Repayable on DemandFrom Banks - SecuredCC Account* 25,06,07,064 73,73,96,725

b) Other Loans and AdvanceFrom Others - UnsecuredPFC - Secured by Government guarantee and 6,93,74,18,149 6,64,00,00,000default escrowPFC - Secured by default escrow 75,00,00,000 -Adani Enterprises Ltd (Holding Co. of PKCL) 44,97,71,269 28,61,98,846TOTAL 8,38,77,96,482 7,66,35,95,571

CURRENT LIABILITIESNote No. 9 : Short-term Borrowings

(Amount in `)


* Secured by First pari-passu charge by way of hypothecation of entire current assets of the company includ-ing raw material, stock-in-process, finished goods, stores and spares, receivables and other current assetswith other working capital lenders.


146 Consolidated

* Disclosure in respect of Micro, Small and Medium Enterprises as at 31st March,2016 as required by Micro,Small and Medium Enterprises Development Act, 2006 is ‘Nil’, on which auditors have been relied upon.

Trade PayablesDue to Micro & Small Enterprises* - -Others

-Liab.to Railways for Coal Receipts 5,28,33,18,388 4,47,57,61,396

-Liab.for Unpaid Coal Bills 95,83,37,260 23,33,22,559

-Liab.for Supply for material 23,75,58,309 7,13,70,848-Suppliers Control A/c 62,21,49,514 40,47,65,335

-Liability for works 29,40,288 37,51,120

-Coal supplier account 9,56,30,47,301 9,34,57,34,749

-Gas related cost 24,16,28,818 23,95,20,118-Oil Supplier account 21,72,343 4,96,95,052

-Other Fuel related liability 10,36,998 10,36,998

- Others 1,19,13,86,797 44,55,28,689

-Expense Payable 3,71,52,530 6,48,29,092-Accrual For Employees 61,423 43,535

TOTAL 18,14,07,89,970 15,33,53,59,491

Note No. 10 : TRADE PAYABLES(Amount in `)


Current maturities of long-term debt

(Refer Note No. 11.1) 24,73,50,15,530 13,81,00,94,273

Interest accrued but not due on term loan 4,93,84,11,069 4,38,31,95,759

Int. accured but not due on WCL loans 74,62,46,957 9,11,91,919

Income received in Advance 1,27,84,387 97,89,626

Other Payables

-Security Deposits from Contractors 72,94,42,712 59,48,56,007

-Security Deposits from Employees 3,12,808 3,12,438

-Earnest Money Deposits 18,18,36,157 22,21,01,118

-Retention Money 4,38,66,44,362 2,31,61,64,140

-Other Deposits 6,18,23,31,758 6,22,72,57,627

-M.D.- C.P.F 15,51,127 5,38,696

Note No. 11 : Other Current Liabilities(Amount in `)



147 Consolidated

-Liabilities for Capital Works/Supplies 3,00,48,48,734 3,06,96,66,603

-Liabilities for O&M Works/Supplies 2,29,84,91,993 1,11,00,31,572

-Statutory Liabilities 31,22,20,394 21,80,46,996

-Staff related liabilities 17,44,84,370 16,19,72,985

-Due for Expenses 9,49,69,671 8,99,98,968

-Amount payable to related parties 56,50,69,591 50,98,98,397

(Refer Note No. 11.2)

-Prov.for Coal related cost 4,69,216 79,12,029

-Prov. For Liab. For Expenses 2,68,67,80,336 1,77,06,96,921

-Prov. For doubtful old balances-others 40,26,521 40,26,521

-Sundry Liabilities 31,54,49,529 43,47,52,327

- Provision for audit fees 3,396 2,629

TOTAL 51,37,13,90,619 35,03,25,07,551

(Amount in `)


Bonds - Unsecured Borrowing

Term Loan from Banks - Secured Borrowings 2,16,67,00,000 13,50,00,000

Term Loan from Banks - Unsecured Borrowings 7,16,60,00,000 3,41,60,00,000

Term Loan from others - Secured Borrowings 10,82,91,96,020 9,65,05,94,360

Term Loan from others - Unsecured Borrowings 4,57,31,19,510 60,84,99,913

TOTAL 24,73,50,15,530 13,81,00,94,273

11.1 Descriptive details for Current Maturity of Long Term Debts (carried from Note No.6)(Amount in `)



148 Consolidated

Amount Payable to AVVN 99,88,523 99,88,523

Amount Payable to JdVVN 8,51,03,803 8,19,61,099

Amount Payable to JVVN 16,76,55,092 16,73,11,700

Amount Payable to RVPNL 30,23,22,173 25,06,37,075

Payable to Subsidiaries Companies - -

TOTAL 56,50,69,591 50,98,98,397

11.2 Amount Payable to Related Parties(Amount in `)


11.3 In respect of Inter Company transactions with other successor companies of erstwhile RSEB, no interest

has been charged/paid.

11.4 The Inter Company transaction in respect of Jd VVNL, JVVNL, AVVNL & RVPN have been reconciled

up to the year 2014-15 and transactions of the current year are in the process of reconciliation.

11.5 Staff related liabilities and Loans and advances to staff are under Reconciliation/ Adjustment.

11.6 Provision for liability for expenses/creation of prepaid expenses is not generally made for small / petty

amounts.

Provisions for Employee Benefits

Gratuity 46,06,377 1,00,16,08,008

Pension 2,65,18,51,947 1,46,14,60,512

Ex-gratia 89,41,412 1,08,72,200

Super Annuation 24,208 22,786

Leave Encashment 9,32,85,966 1,999

TOTAL 2,75,87,09,909 2,47,39,65,505

Note No. 12-: Short Term Provisions(Amount in `)


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


149 Consolidated

Non

-Cur

rent

Ass

ets

Not

e N

o. 1

3-:

Fi

xed

Ass

ets

(Am

oun

t in

`)

GR

OS

S B

LOC

KA

CC

UM

ULA

TED

DE

PR

EC

IATI

ON

N

ET

BLO

CK

S.

Part

icula

rsB

alan

ceA

ddit

ions/

Ded

uct

ions

Bal

ance

Bal

ance

Addit

ions

Ded

uct

ions

Bal

ance

Bal

ance

Bal

ance

No.

as o

n(D

isposa

ls)

as a

tas

on

as

atas

at

as a

t1.0

4.2

01

531

.03.2

016

1.0

4.2

01

531

.03.2

016

31

.03.2

016

31.0

3.20

15

Tang

ible

Ass

ests

1.La

nd &

Rig

hts

Free

hol

d 1

,17,

41,2

3,19

8 3

,46,

57,3

62 -

1,2

0,87

,80,

560

- -

- -

1,2

0,87

,80,

560

1,1

7,41

,23,

198

Leas

e ho

ld 5

,22,

58,2

61 5

,57,

78,8

33 -

10,

80,3

7,09

4 6

4,37

,052

10,

53,6

88 -

74,

90,7

39 1

0,05

,46,

354

4,5

8,21

,209

2. B

uild

ings

22,

78,0

1,70

,523

6,7

5,04

,58,

429

- 2

9,53

,06,

28,9

52 4

,44,

12,9

6,53

3 8

6,80

,84,

138

- 5

,30,

93,8

0,67

0 2

4,22

,12,

48,2

81 1

8,33

,88,

73,9

90

3. H

ydra

ulic

wor

ks 1

2,39

,59,

84,5

06 6

,76,

85,8

0,32

3 -

19,

16,4

5,64

,829

2,5

6,14

,99,

857

75,

21,1

0,80

6 -

3,3

1,36

,10,

663

15,

85,0

9,54

,166

9,8

3,44

,84,

648

4. O

ther

Civ

il W

orks

3,8

3,85

,92,

468

2,0

5,07

,61,

420

- 5

,88,

93,5

3,88

8 6

9,12

,72,

288

19,

64,7

0,97

3 -

88,

77,4

3,26

1 5

,00,

16,1

0,62

7 3

,14,

73,2

0,18

0

5. P

lant

& M

achi

nery

1,8

3,99

,87,

34,5

64 2

7,76

,58,

34,6

66 -

2,1

1,76

,45,

69,2

30 5

2,49

,01,

94,8

59 8

,53,

49,9

1,89

6 -

61,

02,5

1,86

,755

1,5

0,73

,93,

82,4

75 1

,31,

50,8

5,39

,705

6. L

ines

& C

able

Net

Wor

k 9

6,79

,49,

639

3,3

4,15

,054

- 1

,00,

13,6

4,69

3 5

1,68

,24,

272

1,0

8,38

,174

- 5

2,76

,62,

446

47,

37,0

2,24

6 4

5,11

,25,

367

7. V

ehic

les

5,4

7,37

,866

3,7

9,28

7 -

5,5

1,17

,153

4,4

0,81

,022

10,

79,1

75 -

4,5

1,60

,197

99,

56,9

56 1

,06,

56,8

45

8. F

urni

ture

& F

ixtu

res

10,

06,7

0,45

8 1

,19,

92,8

51 -

11,

26,6

3,30

9 2

,70,

50,2

19 6

1,31

,525

- 3

,31,

81,7

44 7

,94,

81,5

65 7

,36,

20,2

40

9. O

ffice

Equ

ipm

ents

11,

22,4

1,41

8 7

1,79

,619

- 1

1,94

,21,

037

6,0

6,26

,155

87,

43,5

89 -

6,9

3,69

,744

5,0

0,51

,293

5,1

6,15

,263

10. C

ompu

ter

Har

dwar

e 4

,67,

613

- -

4,6

7,61

3 1

1,58

3 3

7,94

5 -

49,

528

4,1

8,08

4.69

4,5

6,03

0

11. C

apita

l Spa

res

At G

ener

atin

g

S

tatio

ns (i

i) 1

,49,

95,1

7,44

9 7

9,10

,09,

633

- 2

,29,

05,2

7,08

2 7

6,24

,84,

311

3,4

1,69

,363

- 7

9,66

,53,

674

1,4

9,38

,73,

408

73,

70,3

3,13

8

12. P

rov.

For l

oss-

Fix

Ass

- -

- -

62,

04,1

0,29

2 -

- 6

2,04

,10,

292

(62

,04,

10,2

92)

(62

,04,

10,2

92)

pe

ndin

g in

vstg

. (iii

)

(

Refe

r Not

e N

o. 1

3.1)

Tota

l (A

) 2

,26,

97,5

4,47

,964

44,

27,0

0,47

,476

- 2

,71,

24,5

4,95

,439

62,

22,2

1,88

,443

10,

41,3

7,11

,272

- 7

2,63

,58,

99,7

15 1

,98,

60,9

5,95

,724

1,6

4,75

,32,

59,5

21

Inta

ngib

le a

sset

s

13. S

oftw

are

14,

300

- -

14,

300

5,9

61 2

,858

- 8

,818

5,4

82 8

,340

14.M

ine

Dev

elop

emen

t Rig

ht 1

,68,

38,3

75 -

- 1

,68,

38,3

75 1

1,22

,558

5,6

1,27

9 -

16,

83,8

37 1

,51,

54,5

38.0

7 1

,57,

15,8

17

15. M

inin

g co

al b

lock

upf

ront

fees

- 6

3,27

,41,

318

- 6

3,27

,41,

318

- 1

,91,

11,4

53 -

1,9

1,11

,453

61,

36,2

9,86

5 -

Tota

l (B

) 1

,68,

52,6

75 6

3,27

,41,

318

- 6

4,95

,93,

993

11,

28,5

19 1

,96,

75,5

90 -

2,0

8,04

,109

62,

87,8

9,88

4 1

,57,

24,1

57To

tal (

A+

B)

2,2

6,99

,23,

00,6

39 4

4,90

,27,

88,7

94 -

2,7

1,89

,50,

89,4

32 6

2,22

,33,

16,9

62 1

0,43

,33,

86,8

61 -

72,

65,6

7,03

,823

1,9

9,23

,83,

85,6

09 1

,64,

76,8

9,83

,678


150 Consolidated

13.1 The Fixed Assets of the company includes net assets amounting ` 62,04,10,292/- appearing as on01-04-2008, accounted for in the books of HQ. These assets were transferred by the State Govt. underthe transfer scheme. Details of these assets like situation and location are not available due to whichprovision 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.

13.2. Land and rights (free hold/lease hold) have been acquired pursuant to Power Sector Reform Scheme assuch the title deeds pertaining to some assets in the name of erstwhile RSEB have been continued.

13.3. The title of the following assets does not vest with RVUN.

Particulars Location Amount (in `)

Land on which road leading to STPS is built STPS, Suratgarh 68,23,922

Cement Concrete Road CTPP, Chabbra 40,15,71,731

Road overbridge at KTPS KTPS, Kota 21,99,98,932

13.4. The company has taken certain assets on lease, the original cost of which is ` 41,36,92,160/-. Leaserental on such assets are paid as per terms of lease agreements with lessors i.e. Banks.

13.5. The land on which the Rest House and Residential Colony are developed for GLTPP in Barmer citystands owned by RRVPNL and Jd.VVNL respectively.

13.6. The land on which the Rest House and Residential Colony are developed at DCCPP in city standsowned by RRVPNL.

13.7. Title deed in respect of Giral Unit-I project amounting to 43,38,944/- is yet to be transferred/executedin favour of GLPL (subsidiary of RVUN).

13.8. The RVUNL (Thermal Design wing) has shared the construction cost of the new ‘RERC Building’ situatedat Lal Kothi campus, Sahkar Marg, Jaipur, constructed by RVPNL. The cost portion on the part ofRVUNL works out ` 3,27,70,000/-. Further RVUNL has agreed to pay monthly lease rent of` 1,05,000/- over a period of 20 years (term period of lease). The capital cost appearing in the books ofRVUNL shall also be amortised equally over the period of lease.

13.9. Out of total land acquired for DCCPP, land measuring 200.01 Bigha is yet to be allotted in favour of theCompany.

13.10 Land titles of the land on which the residential colony situated at Vidyut Vihar, Barmer has been constructedlies with the Jodhpur Discom. Land titles of the land on which the building of accounts office situated atIndira nagar, Barmer also lies with Jodhpur Discom.


151 Consolidated

Not

e N

o. 1

3A

-: R

ate

Reg

ulat

ory

Ass

et

Par

ticu

lars

(Am

oun

t in

`)

Rat

e R

egul

ator

yA

sset

Am

orti

sati

on N

et R

egul

ator

yA

sset

Bal

ance

as o

n01.0

4.

2015

Add

itio

ns A

dju

st-

men

t/D

educ

-ti

ons

Bal

ance

as a

t31.0

3.

2016

Bal

ance

as o

n01.0

4.

2015

Addi-

tion

s D

educ

-ti

ons

Bal

ance

as

at31.0

3.2

016

Bal

ance

as

at31.0

3.2

016

Bal

ance

as

at31.0

3.2

015

Rat

e R

egul

ator

y -

1,36

,33,55

,367

- 1

,36,33

,55,36

7 -

26,8

2,34,6

43 -

26,8

2,34,6

43 1

,09,51

,20,72

4 -

Ass

et

13A

. 1R

ajas

than

Ele

ctric

ity R

egul

ator

y C

omm

issi

on h

as s

anct

ione

d th

roug

h vi

de o

rder

no.

Pet

ition

No.

RE

RC

/483

/14

date

d 12

.08.

15 a

nd P

etiti

on N

o.R

ER

C/4

81/1

4 da

ted

12.0

8.15

to th

e G

LPL

an a

dditi

onal

cap

ital c

ost f

or U

nit-

I am

ount

ing

to `

30,

17,5

5,36

7/-

and

for U

nit-

II `1

06,1

6,00

,000

/-.Th

e ad

ditio

nal c

ost h

as b

een

show

n re

gula

tory

ass

ets

in th

e bo

oks

of a

ccou

nts

for

both

the

units

in a

ccor

danc

e w

ith t

he “

Gua

idan

ce N

ote

onA

ccou

ntin

g of

Rat

e R

egul

ated

Act

iviti

es”

issu

ed b

y IC

AI a

nd a

ccou

ntin

g po

licy

no.

9. T

he c

ompa

ny h

as r

ecog

nize

d R

egul

ator

y In

com

e in

the

stat

emen

t of P

rofit

& L

oss

acco

unt `

24,

33,5

2,41

1/-

for

Uni

t I a

nd in

cas

e of

uni

t II t

he s

ame

has

been

reco

gniz

ed a

s lia

bilit

y of

RV

UN

L be

ing

expe

nditu

re in

curr

ed b

y th

e R

VU

NL

in e

arlie

r yea

rs a

nd n

ot tr

ansf

erre

d to

the

com

pany

. Hen

ce, R

egul

ator

y A

sset

s in

the

Bal

ance

she

et h

as b

een

reco

gniz

ed a

mou

ntin

g to

` 1

09,5

1,20

,724

/- (n

et o

f Am

ortiz

atio

n up

to m

arch

201

6).

13A

.2G

LPL

has

reco

gniz

ed a

s cu

rren

t lia

bilit

ies

in b

alan

ce s

heet

pay

able

to R

VU

NL

` 11

2,00

,02,

956/

- fo

r the

par

t of r

egul

ator

y as

sets

reco

gniz

ed fo

rU

nit-

I ` 5

,84,

02,9

56/-

(on

prop

ortio

nate

bas

is) &

Uni

t II `

106

,16,

00,0

00/-

boo

ked.

As

per R

ER

C n

orm

s G

LPL

has

assu

med

use

ful l

ife o

f ass

ets

25 y

ears

for a

mor

tizin

g re

gula

tory

ass

ets

over

the

perio

d.

13A

.3Fu

rthe

r GLP

L ha

s cl

aim

ed a

mor

tizat

ion

amou

nt to

` 1

7,20

,66,

455/

- fr

om R

VU

NL

whi

ch is

acc

umul

ated

am

ortiz

ed v

alue

on

beha

lf of

Uni

t-II

for

the

perio

d fr

om 2

010-

11 to

201

4-15

. GLP

L ha

s bo

oked

as

an e

xpen

se in

cur

rent

yea

r am

ortiz

ed v

alue

on

regu

lato

ry a

sset

s. A

mor

tizat

ion

onre

gula

tory

ass

ets a

nd h

as b

een

redu

ced

from

the

gros

s val

ue o

f reg

ulat

ory

asse

ts a

mou

ntin

g to

5

,37,

04,1

88/-

for U

nit-I

and

2

1,45

,30,

455/

- (i.

e.`

17,2

0,66

,455

/- fr

om 2

011-

12 to

201

4-15

& `

4,2

4,64

,000

/- fo

r the

yea

r 201

5-16

) for

Uni

t-II.


152 Consolidated

13A.4 Further the following disclosure has been made in statement form :

a)(Amount in `)

Particulars Unit I Unit II

RERC Additional Capital Cost Sanctioned 30,17,55,367 1,06,16,00,000

Regulatory income recognized in the books of accounts 24,33,52,411 5,84,02,956(` 5,84,02,956/- is payable to RVUNL from regulatory income)

Accumulated amortization on above additional assets booked 5,37,04,188 21,45,30,455has been reduced from the above regulatory assets and chargedin the statement of Profit and loss account i.e. for the Period2011-12 to 2015-16(in case of Unit-II Amortization of` 17,20,66,455/- is for the period 2011-2015 and has beenclaimed from RVUN and ` 4,24,64,000/- amortization is for theperiod 2015-16 has been charged in the books of GLPL.

Net Regulatory Income recognized in the statement of Profit and 24,33,52,411 -Loss account

Net Regulatory Assets recognized in the Balance sheet i.e. Net of 20,55,87,179 88,95,33,545above accumulated depreciation

b) Year-wise restatement of profits of GLPL Unit-I, being addition in the Fixed assets, as allowedby RERC:

(Amount in `)

Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Present Reserve & surplus (Before (90.79) (158.46) (224.14) (296.54) (285.20) (328.10)withdrawing interest expenses forcapitalization)

Opening Reserve & Surplus (5.69) (60.61) (128.28) (193.96) (266.35) (255.02)

Profits/Loss during respective F.Y. (85.09) (67.67) (65.68) (72.39) 11.33 (42.89)

Add: Interest Expenses withdrwan and 30.17 - - - -Capitalised

Re-stated Reserve & surplus (After (60.61) (128.28) (193.96) (266.35) (255.02) (297.91)withdrawing interest expenses forcapitalization)


153 Consolidated

(c) Statement showing item-wise addition in value of fixed assets from the date of COD on the part ofregulatory assets as approved by RERC, considering the part of capital cost:-

Unit I (Amount in `)

Paticulars As on Add: Total Assets31.03.11 capitalized as Per RERC

Cost valuation

Land & land Rights 1,44,95,784 5,04,216 1,50,00,000

Building & Civil works of Power Plants 92,21,06,475 2,92,93,525 95,14,00,000

Hydraulic Works 82,93,66,452 (13,85,66,452) 69,08,00,000

Plant & machinery 5,75,56,38,702 41,01,61,298 6,16,58,00,000

Lines & cable Network 44,23,994 1,76,006 46,00,000

Vehicles 16,32,672 (32,672) 16,00,000

Furniture & Fixtures 36,51,766 1,48,234 38,00,000

Office Equipments 13,28,788 71,212 14,00,000

TOTAL 7,53,26,44,633 30,17,55,367 7,83,44,00,000

Unit II (Amount in `)


Cost valuation

Building & Civil works of Power Plants 2,08,81,025 29,00,000 2,37,81,025

Hydraulic Works 10,16,54,481 18,91,00,000 29,07,54,481

Plant & machinery 7,15,02,59,416 84,85,00,000 7,99,87,59,416

Lines & cable Network 15,20,70,023 2,10,00,000 17,30,70,023

Furniture & Fixtures 1,24,819 - 1,24,819

Office Equipments 3,17,810 1,00,000 4,17,810

TOTAL 7,42,55,21,302 1,06,16,00,000 8,48,71,21,302

Capital Work In Progress 91,78,59,40,048 80,41,83,84,745

Capital Inventory and Stores:

Stock of material at const.stores 1,19,70,24,892 7,64,81,450

Less: Prov. for O&M & Capital Stores (79,33,254) (79,33,254)

TOTAL 92,97,50,31,686 80,48,69,32,941

Note No. 14-: Fixed Assets - Capital Work in Progress(Amount in `)



154 Consolidated

Deferred Tax Liabilities

Depreication 5,441 21,557

Deferred Tax Assets

Carried Forwad losses 1,27,123 93,157

TOTAL 1,21,682 71,600

Note No. 15-: Deferred Tax Assets(Amount in `)


15.1 No provision for deferred tax assets / liability pursuant to AS-22 “Accounting for Taxes on Income” hasbeen made by the RRVUNL as there is no virtual certainty supported by convincing evidence that thereshall be any future tax liability against which the provisions can be adjusted. Therefore it has beenconsidered that no provision is required to be made in pursuant to AS-22. The figure reported above arerelated to the share of Joint Venture.

Unsecured & Considered Good

Advance to Suppliers & Contractors for Capital Goods

(Refer Note No. 16.1) - considered Good 9,87,15,08,972 13,28,71,88,693


Less: Provision for doubtful advances (13,64,81,363) (15,05,63,911)

9,87,15,08,972 13,28,71,88,693

Advance Income Tax 1,25,22,003 32,07,933

MAT Credit receivable 2,11,998 26,12,080

Security Deposit with C.T.O.(NSC) 64,000 64,000

Income Accured but not due (NSC Interest) 46,838 42,575

TOTAL 9,88,43,53,812 13,29,31,15,281

Note No. 16 : LONG TERM LOANS AND ADVANCES(Amount in `)


16.1 The Board of Directors of the company in its 154th meeting held on 05-03-2009 decided to refund toBHEL 59,82,58,021, the equivalent amount of WCT deducted from their bills subject to the conditionthat the BHEL shall promptly refund entire amount including interest, if any, to the RVUN within sevendays from the date of receipt of the same by BHEL from the commercial taxes department. Till such timethe same has been shown as Advance receivable from BHEL. The company has filed appeal before theTax Board Rajashan against the decision of Commercial Tax Department and the same is pending.


155 Consolidated

Deffered Revenue Exp. not yet written-off 39,91,35,970 32,93,62,669

Security Deposit with C.T.O. -JPR 34,000 34,000

Preliminary Exp. not yet written-off 37,62,277 37,62,277

Exp.on survey /Projects not yet sanctioned 1,32,04,695 1,32,04,695

Prepaid Expenditure 53,50,094 61,167

Other Receivables:

Security Deposit with Lessor 1,55,83,500 1,55,83,500

Subvention Receivable From State Govt. 1,77,70,49,384 1,96,68,95,384

Less:- Current Maturity (18,98,46,000) (18,98,46,000)

Other Deposits 1,76,37,439 60,67,718

TOTAL 2,04,19,11,358 2,14,51,25,410

Note No. 17-: Other Non-Current Assets(Amount in `)


17.1 In line with significant accounting policy No. 1.9(b), an amount of 17,87,14,445/- (P.Y. 8,14,89,445/-) has been charged to Statement of Profit and Loss and expenditure amounting to `57,74,82,781/-(P.Y. ` 40,74,47,223/-) has been deferred to be amortised in the remaining balance financial years.

17.2 During the year the interest subsidy has been adjusted 18,98,46,000/- against the deferred subventionreceivable as approved in the final FRP by Govt. of Rajasthan in Nov. 2005.

17.3 The ownership of leased assets of the following companies have not been transferred in the favour of thecompany after expiry of lease agreements due to pending litigation in court or in absence of power ofattorney. The security deposit equivalent to residual value of the lease assets have already been depositedwith lessors except M/s ICICI Ltd. for which payment will be made. The details are as under:-

(Amount in `)

S.No. Name of Lessor Lease Value Residual Value

1 ICICI Ltd. 84,00,00,000 84,00,000

2 Indo Nissan Oxo Chemical Ltd. 6,23,34,000 155,83,500

TOTAL 90,23,34,000 2,39,83,500


156 Consolidated

Coal Stock 6,08,49,22,122 8,00,39,33,942

Less: Stock Reserve (Unrealised Profit) 96,00,266 65,21,317

Coal Stock net of Stock Reseve (Refer note no. 18.1) 6,07,53,21,856 7,99,74,12,625

Oil Stock 26,49,74,290 48,77,90,811

Capital Stock 25,70,03,742 26,03,31,719

Coal in transit 10,27,19,513 13,33,04,703

Coal Stock in Transit lying with third party 47,63,01,533 91,15,94,615

Stores & Spares 1,66,27,01,300 1,46,61,71,309

Stock shortage pending investigation 23,56,077 23,56,077

Less:Prov. for doubtful old balances (23,56,077) -

TOTAL 8,83,90,22,233 11,25,89,61,859

Note No. 18-: Inventories(Amount in ` )


CURRENT ASSETS

18.1 This has been worked out on Coal Stock purchased from PKCL and lying in stock as on 31 March 2016,consider average gross profit rate of approx. 4.67% as per financial statement of PKCL.

Debts outstanding for a period exceeding six monthsfrom Due Date of Payment


Unsecured, considered good 16,28,77,543 76,17,603

Doubtful - -

Other Debts


Unsecured, considered Good * 56,85,90,47,841 27,98,37,97,474

Doubtful - -

TOTAL 57,02,19,25,384 27,99,14,15,077

Note No. 19-: Trade Receivables(Amount in `)


* Trade Receivable for current year includes ` 10.36 Crores ( Being 26% of ` 39.86 Crores) P.Y. ` 7.95 crores(Being 26% of 30.56 crore) which is accounted as receivable by PKCL but same is not acknowledged as debtby RRVUNL and receivable of ` 3.71 Crores (Being 26% of ` 14.28 Crores) P.Y. ` 2.65 crores (Being 26% of`10.18 Crore) which is under reconciliation with PKCL.


157 Consolidated

Receivables against sale of power-JVVNL 22,72,41,92,028 7,70,92,33,013

Receivables against sale of power-AVVNL 17,16,19,10,149 9,32,45,90,239

Receivables against sale of power-JD.VVNL 16,97,29,45,664 10,80,68,70,424

Other Receivables 16,28,77,543 15,07,21,400

TOTAL 57,02,19,25,384 27,99,14,15,077

19.1 Details of Trade Receivables(Amount in ` )


19.2 Trade Receivable have been reconciled up to the year 2014-15 and transactions of the current year arein the process of reconciliation.

Balances with banks

Current Accounts 60,85,59,336 81,00,22,941

CC Acount* 45,22,62,506 -

Current Account - Fly Ash Fund 25,72,127 2,63,18,308

With Public Deposit Accounts 30,000 30,000

Cash on hand 5,78,777 6,03,666

Others

Remittances in Transit (77,30,157) (59,06,795)


Cash Imprest with Staff 28,018 28,018

FDR With Bank - Fly Ash Fund 39,84,57,313 19,68,82,900

FDR with Scheduled banks** 31,42,77,958 11,82,08,052

In deposit accounts (less than three months) 15,41,542 1,36,53,630

TOTAL 2,02,00,86,187 1,15,98,40,720

Note No. 20-: Cash and Cash Equivalents(Amount in `)


* Out of the total amount of 45,22,62,506/-, amount of 33,85,69,523/- pertains to Fly Ash Utilization Fund.** Out of the total amount of ` 31,42,77,958/- FDR’s amounting to ` 4,32,59,750/- have a maturity periodbeyond 12 months.

20.1 Cash and Cash equivalents as at 31.03.2016 include restricted Bank Balance of 31,42,77,958/- (P.Y.`11, 22,15,743/- ). These restrictions are primarily on account of cash and bank balances held as marginmoney deposits against bank guarantee and Letter of Credit issued.


158 Consolidated

Un-secured & Considered good

Loans & Advances to Empolyees

- considered good 33,68,804 32,79,906

- considered doubtful 13,839 13,839

Less: Provision for doubtful advances (13,839) (13,839)

33,68,804 32,79,906

FBT Receivable 29,99,182 29,99,182

Advances for Fuel Supply 97,18,35,136 65,23,94,550

Advances for O&M Supplies

- considered good 1,94,95,53,911 1,43,73,75,585


Less: Provision for doubtful advances (4,55,28,821) (4,55,28,821)

2,92,13,89,046 2,08,97,70,135

Loans & Advances to Other Parties 10,38,589 11,47,281

Deferred Sale Consideration (Lease) (Refer Note No. 21.1) 3,29,62,973 3,29,62,973

Balance with Government Authorities (CENVAT Receivable) 31,12,072 59,99,341

Advance Against Expense 13,09,603 18,08,061

Staff Advances 48,343 31,561

Prepaid Expenses 2,771 1,927

Deposits 13,793 13,793

Advance to Suppliers 16,00,27,854 8,89,87,799

Advance to Contractors 1,66,71,816 1,57,17,874

T.A. Advance 9,200 16,200

Other Advances 1,63,73,289 1,59,68,556

Departmental Advances 281 281

Other Misc. Advance 4,313 4,313

TOTAL 3,15,93,31,928 2,25,87,09,184

Note No. 21-: Short Term Loans & Advances(Amount in `)


21.1 No credit is taken in the accounts for interest payable on defaulted instalment’s of sale consideration bylease finance companies, due to specific provision in their agreements. Consequential action has beentaken by RVUN by way of with-holding payments of lease rentals on occurrence of defaults.


159 Consolidated

Interest Accrued & Due- considered Good 11,60,07,835 5,13,344- considered Doubtful - 1,77,34,431

Less: Provision for doubtful debts - (1,77,34,431)Interest Accrued but not due

- considered Good 2,50,37,391 1,46,82,745- considered Doubtful 4,12,070 4,12,070

Less: Provision for doubtful debts (4,12,070) (4,12,070)Others:Deffered Rev.Exp.not yet written-off 18,17,51,702 8,80,88,373Prepaid Expenses 9,66,63,862 16,13,44,019Amt Recoverable from Employees 1,04,474 2,19,345Fuel Related Receivables & Claims 4,02,70,01,653 3,93,39,34,136Subvention Receivable From State Govt. 18,98,46,000 18,98,46,000Income from Investment 3,902 3,902Receivables from Subsidiaries Companies(GIRAL LPL) 0 7,78,72,108(Refer Note No. 22.2)Other Claims 17,915 17,915Other Receivables (Refer Note No. 22.3)

- considered Good 33,01,51,064 17,78,05,378- considered Doubtful 3,80,83,142 3,80,83,142

Less: Provision for doubtful advances (3,80,83,142) (3,80,83,142)Deposits 9,80,15,889 12,36,08,990Recoverable from Suppliers 44,004 44,004Recoverable from Contractors 78,40,512 58,69,796Prepaid Expenses 9,00,94,877 51,09,800Interunit A/C - (2,93,612)TOTAL 5,16,25,81,080 4,77,86,66,243

Note No. 22-: Other Current Assets(Amount in `)


22.1 The Inter Unit Transactions upto 31-03-2016 have been reconciled.

22.2 The transactions between RRVUNL and GLPL have been reconciled.

22.3 Other receivable includes an excess amount of ` 35,72,188/- had been paid by STPS (Const.) unit toGovt. for acquisition of Land. This amount was to be recovered from the payment to be made byTransmission Company to Govt.

22.4 Lenders for GLPL i.e PFC and banks are agreed in principle for transfer of their loan to GLPL. Howevertripartite agreement is still to be executed. It has also been agreed between RVUN and GLPL that RVUNshall meet out the financial/contractual commitments (including debt servicing) regarding loans availedfrom the financial institutions. Expenditure, if any, incurred by RVUN in this regard shall be reimbursedby GLPL.


160 Consolidated

22.5 During the year 2006-07 the Mining Department recovered an amount of ` 7,60,000/- by seizing ourBank Account at DCCPP, Dholpur, against penalty of Royalty not deposited. This royalty amount was` 76,000/- against which ten times penalty was recovered. The liability to pay the royalty lied with thecontractor M/s. D.K.Sharma. The matter is still under correspondence with the department for gettingthe refund of the ceased amount.

Sale of Power (Refer Note No. 23.1) 1,01,74,15,12,455 92,27,47,14,263

Add: Advance against Depreciation Deferred 4,39,18,000 12,47,68,254


Less : Trial Run Revenue (Infirm Power) (1,26,05,45,865) (1,31,67,97,254)

1,00,52,48,84,590 91,08,26,85,263

Sale of Fly Ash 47,52,51,496 26,91,58,538

Less: Transferred to Fly Ash Utilisation Fund 43,87,30,027 26,70,01,382

(Refer Note No. 4)

Less: Excise Duty / VAT / CST on Fly Ash 3,65,21,469 21,57,156

- -

Mining Service Fee - 75,74,585

Late Payment Charges (Refer note no. 23.3) 1,79,63,698 89,78,825

TOTAL 1,00,54,28,48,288 91,09,92,38,674

Note No. 23-: Revenue from Operations(Amount in ` )

Particulars For the year ended For the year ended31st March, 2016 31st March, 2015

23.1 Claims on account of late payment surcharge towards delayed payment by DISCOMs amounting to` 321,84,08,393/- (P.Y. ` 18,88,66,484/-) have been accounted for as Revenue from sale of power inaccordance with RERC Tariff Regulations.

23.2 In line with significant accounting policy No. 1.7(b), an amount of `4,39,17,808/- (P.Y. 12,47,68,254/-) hasbeen recognized during the year from the AAD and included in Sale of Power.

23.3 Late Payment charges booked by PKCL as receivable from RRVUNL has not been knocked off since thesaid claim has not been acknowledged as debt by RRVUNL.


161 Consolidated

Interest Income:-Interest subsidies received from Govt. 1,94,859 2,27,843Interest on Loans and Advances to Staff 1,88,007 32,351Interest Income from Investments/Deposits 4,96,16,245 1,78,43,324Quarter Rent 78,960 1,23,344Income From Erector Hostel 74,560 3,61,790Sale of Tender Form 24,200 55,700Less: Transferred to Fly Ash Utilisation Fund (2,78,74,815) (59,92,739)(Refer Note No.4)Other Interest (Income Tax Refund) - 1,88,983

Other Non Operating Income:-Miscellaneous Receipts (Including Rebate) 35,83,65,418 28,42,96,738Sale of Scrap 64,41,533 1,09,09,394TOTAL 38,71,08,968 30,80,46,728

Note No. 24-: Other Income(Amount in ` )


Generation & Other Direct Expenses 75,65,26,97,214 88,69,00,55,653


TOTAL 75,65,26,97,214 88,69,00,55,653

Note No. 25-: Generation & Other Direct Expenses(Amount in `)



162 Consolidated

A. Fuel consumption

Cost of Coal Consumed (Steam)* 66,17,77,26,691 78,21,49,80,205

Cost of Oil Consumed (Steam) 1,82,77,25,259 2,48,46,02,411

Cost of Gas Consumed (Internal Combustion) 6,26,75,53,162 7,28,62,85,364

Cost of Oil Consumed (Internal Combustion) 3,41,338 2,64,99,418

Other Fuel related Cost 15,71,77,875 26,21,99,000

Total (A) 74,43,05,24,325 88,27,45,66,398

B. Operating Cost

Cost of water 8,75,85,719 2,17,27,905

Lubricants and consumption store 6,17,30,662 9,17,04,137

Station Supplies 10,38,70,777 7,82,64,973

Other Cost 31,97,41,579 35,51,62,593

Fuel Related Losses 41,50,38,938 69,89,08,961

Total (B) 98,79,67,675 1,24,57,68,569

C. Coal Mining Services 1,36,76,48,036 67,47,51,750

Total (C) 1,36,76,48,036 67,47,51,750

Total (A+B+C) 76,78,61,40,036 90,19,50,86,718

Less:- Cost of generation Capitalised 1,13,34,42,822 1,50,50,31,065

GRAND TOTAL 75,65,26,97,214 88,69,00,55,653

25.1 Details of Generation and Other Direct Expenses(Amount in ` )


* After making adjustment of stock reserve 96,00,266/- in the current year. Refer Note No. 18.


163 Consolidated

Plant & Machinery 2,93,00,62,141 2,75,96,25,407

Buildings 12,27,95,488 9,72,13,317

Civil Works 14,52,68,627 11,53,74,400

Hydraulic Works 74,39,400 50,06,158

Vehicles 23,21,996 24,56,331

Furniture & Fixtures 1,76,952 3,61,251

Office & Other Equipments 16,82,128 10,45,213

3,20,97,46,732 2,98,10,82,077

Less:- Repairs and Maintenance Expenses Capitalised 3,59,51,699 4,53,75,674

TOTAL 3,17,37,95,033 2,93,57,06,403

Note No. 26-:Repairs & Maintenance(Amount in `)


(a) Salaries and incentives 2,30,01,48,362 2,10,24,85,180

(Ref Note No.27.1)

(b) Contributions to -

(i) Terminal Benefits (Including Provident Fund) 1,90,19,06,513 25,55,92,271

(ii) Gratuity fund 46,795 73,238

(c) Staff welfare expenses 10,98,47,066 5,95,46,653

(Ref. Note no. 27.2)

4,31,19,48,736 2,41,76,97,342

Less: Employee Cost Capitalized 13,48,51,717 14,43,59,534

TOTAL 4,17,70,97,019 2,27,33,37,808

Note No. 27-: Employee Benefits(Amount in `)



164 Consolidated

Basic Pay 93,86,36,643 83,60,00,020

Dearness Pay 68,48,458 1,74,90,646

Overtime 5,36,40,742 4,38,17,042

Dearness Allowances 89,03,57,431 77,17,46,609

Other Allowances 7,05,91,423 7,04,92,523

Exgratia 77,06,791 1,07,29,565

Leave Encashment 22,07,29,519 9,18,22,140

Tution Fees 28,308 -

Generation Incentive & Award 10,53,14,187 25,17,28,342

D.L.I. Nigam contribution 40,02,114 33,35,793

D.L.I. Admn. Charges 6,21,104 4,20,434

Salary of Ex Servicemen 8,99,496 37,46,707

ESI Admn. Charges 7,72,146 7,23,960

Interest on Un-paid salary and wages - 4,31,399

TOTAL 2,30,01,48,362 2,10,24,85,180

27.1 Details of Salaries and Incentives(Amount in ` )


Medical Insurance Premium 12,30,500 9,59,363

Medical Reimburesement 1,37,97,889 1,27,94,175

Training Expense 2,78,57,332 18,15,674

Medical Expenses-Dispensary inside plant 13,96,843 13,90,525

Medical Expenses-Dispensary inside colony 2,16,000 3,66,645

Education Expense 4,87,16,461 2,49,69,477

Canteen Expenses 41,06,181 56,63,301

Uniform & Liveries 23,05,558 31,73,872

Soap & Duster 5,05,315 3,32,591

Safety Devices 15,19,358 1,41,000

Recreation Expense 2,77,668 4,80,183

Other Welfare Expense 78,91,284 74,54,847

Payment of Annuity Benefits 26,677 5,000

TOTAL 10,98,47,066 5,95,46,653

27.2 Details of Staff Welfare expenses(Amount in ` )



165 Consolidated

27.3 Disclosure as per Accounting Standard - 15 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 pensionto retired employees / to be retired employees. After unbundling a separate trust was created in2001 and fund available in the RSEB was transferred to Trust through Transfer Scheme and isbeing now funded regularly from the contribution by the successor entities.

2. During the year, in accordance with the provisions of AS-15- "Employees Benefits", acturialvaluation has been obtained in respect of liability of Pension, Gratutity and Leave Encashment.

3. As per provision of AS-15 "Employees Benefits" issued by ICAI, the defined benefit obligation(post retirement benefits) existing as on balance sheet date with break up in current year servicecost and past year service cost is required to charged to Statement of P&L Account of the yearconcerned. Similarly the assets created out of the corpus of the fund are also required to bevalued as fair value as on date of the balance sheet. As per AS 15, the value of the aforesaiddefined benefit obligations and its fair value of the aforesaid asset should be accounted for in theaccounts on the basis of actuarial valuation on the date of balance sheet. As per transfer schemeRVUN is to ensure that pension and gratuity trust are adequately funded to meet the paymentspertaining to the years of service rendered by the personnel.

4. As per AS-15- "Employee Benefits" states benefits involving employer established providentfunds, which require interest shortfall to be provided, are to be considered as defined benefitsplans.The obligation of the company is to ensure minimum rate of interest to the menbers asspecified by GOI. Such liability (if any) is not ascertained. Hence, effect in this respect has notbeen provided.

The contribution of 10,09,53,708/- (P.Y. 8,65,27,941/-) for the year is recognised as expenseand charged to statemtnent of Profit & Loss.

5. Liability of the pension amouting to `74,43,19,926/- (P.Y. `10,24,02,312/-) is recognised asexpenses of current year. This includes incremental liability of the pension as per actuarial valuationamounting to ` 64,20,64,116/- (P.Y. N.A.).The differiantial liability till 31-03-2015 of` 58,34,62,511 has been accounted for as prior period expenditure.

6. Liability of the gratuity amouting to ` 20,85,11,625/- (P.Y ` 6,40,28,865/- ) is recognised asexpenses of current year. This includes incremental liability of the gratuity as per actuarial valuationamounting to `13,55,75,928/- (P.Y. ` 73,238/-).Further, since the fair value of plan asset inrespect of gratuity exceeds the present value of obligation as on 31.03.2015 as per acturialvaluation, therefore, the net excess fair value of plan asset amouting to 1,11,63,53,890/- hasbeen credited to prior period expenditure.

7. Liability of the leave encashment amouting to ` 1,06,21,80,264/- (P.Y. ` 9,18,22,140/-) isrecognised as expenses of current year. This Includes incremental liability of the leave encashmentas per actuarial valuation amounting to ` 11,64,84,462/- for the FY 2015-16 and differiantialliability till 31-03-2015 of 84,14,50,745/- (also refer Note No. 33.6). Liability of leave encashmentbenefits are unfunded.

Actuarial Assumptions:


Discount Rate Mortality 8% 7.9% - 8% 8%

Valuation Methodology (Projected Unit (Projected Unit (Projected UnitCredit Method) Credit Method) Credit Method)

Future Salary Increases 8% 8% 8%

Expected Rate of Return on Plan Asset 8% 8% 8%


166 Consolidated

A. Changes in present value of defined benefit obligations as on 31.03.2016


Present Value of obligation as at the 5,81,77,23,023 1,27,41,75,595 84,14,50,745beginning of the period (31/03/2015) - (33,861) -

Interest cost 46,54,17,842 10,19,34,065 6,73,16,060

- - -

Past Service Cost - - -

(5,88,75,28,723) (1,29,72,61,287) (88,22,43,631)

Current Service Cost 15,94,54,050 8,03,04,784 5,94,84,696

(14,86,94,300) (6,78,80,446) (5,10,29,254)

Benefits Paid -24,41,00,000 -9,67,00,000 -10,42,45,057

(-21,85,00,000) (-9,10,00,000) (-9,18,22,140)

Acturial (Gain) / loss on obligation 38,38,57,032 11,30,33,777 9,39,28,763

- - (88,22,43,631)

Present value of obligation as at the 6,58,23,51,947 1,47,27,48,221 95,79,35,207end of Period (31/03/2016) (5,81,77,23,023) (1,27,41,75,594) (84,14,50,745)

Enterprise best estimate for expense next year is 6,78,28,939 - Gratuity

Enterprise best estimate for expense next year is 17,88,60,820 - Earned leave liability.

Enterprise best estimate for expense next year is 80,90,23,668 - Pension.

*The current year figures are tentative and subject to finalization and audit of Trust accounts.

B. Changes in Fair Value of Plan Assets as at 31.03.2016

Particulars Pension Gratuity

Fair value of Plan assets at the beginning 3,77,28,00,000 1,38,89,00,000of the period (3,58,73,00,000) (1,30,55,00,000)

Expected Return on Plan asset 30,18,24,000 11,11,12,000

(28,69,84,000) (10,44,40,000)

Employer Contributions 10,55,00,000 7,26,00,000

(13,46,00,000) (8,08,00,000)

Benefits Paid -24,41,00,000 -9,67,00,000

(-21,85,00,000) (-9,10,00,000)

Actuarial gain/(loss) on plan assets -55,24,000 -78,12,000

(-1,75,84,000) (-1,08,40,000)

Fair value of Plan assets at the end of the period 3,93,05,00,000 1,46,81,00,000

(3,77,28,00,000) (1,38,89,00,000)

C. Amount recognised in Balance Sheet

Particulars Pension Gratuity Leave

Encashment

Present value of obligation as at the 6,58,23,51,947 1,47,27,48,221 95,79,35,207end of Period (31/03/2016) (5,81,77,23,023) (1,27,41,75,595) (84,14,50,745)

Fair value of Plan assets at the end of 3,93,05,00,000 1,46,81,00,000 -the period (31/03/2016) (3,77,28,00,000) (1,38,89,00,000) -


167 Consolidated

Net Liability/(Assets) recognised in 2,65,18,51,947 46,48,221 95,79,35,207Balance Sheet as provision (2,04,49,23,023) (-11,47,24,405) (84,14,50,745)

D. Amount recognized in Statement of Profit & Loss


Current Service Cost 15,94,54,050 8,03,04,784 5,94,84,696

(14,86,94,300) (6,78,80,446) (5,10,29,254)

Past service cost - - -

(5,90,51,12,723) - (88,22,43,631)

Interest Cost 46,54,17,842 10,19,34,065 6,73,16,060

- - -

Expected return on plan assets -30,18,24,000 -11,11,12,000 -

(-28,69,84,000) (-10,44,40,000) -

Net acturial (gain) / loss recognised 38,93,81,032 12,08,45,777 9,39,28,763in the period - (1,30,81,01,287) -

Net amount recognised in P&L as on 71,24,28,924 19,19,72,626 22,07,29,51931/03/2016 (5,76,68,23,023) (1,27,15,41,733) (93,32,72,885)

Figures of previous year (in brackets) have been given to the extent available.

E. Other Disclosures

Pension 2015-16 2014-15



Liability / Assets 2,65,18,51,947 2,04,49,23,023


Liability / (Assets) recognised in Balance Sheet 2,65,18,51,947 2,04,49,23,023

Gratuity 2015-16 2014-15



Liability / (Assets) 46,48,221 -11,47,24,405


Liability / (Assets) recognised in Balance Sheet 46,48,221 -11,47,24,405

Earned Leave Liability 2015-16 2014-15

Present value of obligation as on 31st March 95,79,35,207 84,14,50,745

Fair value of Plan assets - -

Liability / Assets 95,79,35,207 84,14,50,745


Liability / (Assets) recognised in Balance Sheet 95,79,35,207 84,14,50,745


168 Consolidated

Interest expense 30,81,50,10,253 24,36,65,20,775 (Refer Note No.28.1)

Lease Rentals 1,12,87,356 1,11,638

Guarantee charges 88,92,008 54,39,835

Other Borrowing Cost (Refer Note No. 28.2) 47,29,67,811 42,47,39,240

TOTAL 31,30,81,57,428 24,79,68,11,488

Less: Finance Cost Capitalised 10,46,07,07,455 10,56,19,24,291

TOTAL 20,84,74,49,973 14,23,48,87,197

Note No. 28-: Finance Costs(Amount in ` )


Interest on State Government Loans 18,98,46,000 18,98,46,000

Interest on Loans from Financial Institutions:

-Interest on Loans from LIC 1,17,07,347 2,17,40,184

-Interest on Loans from OBC 1,40,00,164 2,35,79,474

-Interest on Loans from Canara Bank 69,09,657 1,25,40,982

-Interest on Loans from REC 2,52,60,65,066 1,75,23,56,366

-Interest on Loans from NCRPB 3,42,98,630 5,17,98,630

-Interest on loans from World Bank 5,93,691 7,04,540

-Interest on loans from PFC 22,21,55,63,678 19,25,43,01,803

-Interest on loans from Others 4,82,47,074 1,92,52,112

Sub-Total (A) 25,04,72,31,307 21,32,61,20,091

Interest on Short Term Loans from Banks:

Int. on WCL- PFC 1,90,90,47,599 65,70,86,195

Int. on WCL- REC 88,49,41,406 20,42,57,998

Int. on WCL- HUDCO 8,90,45,552 13,94,86,338

Int. on WCL- SBBJ 48,62,90,415 26,26,71,234

Int. on WCL- BOI 79,55,58,195 77,65,01,076

Int. on WCL- Others (4,10,64,018) 10,48,53,042

Int. on WCL- Allahabad Bank 6,27,87,681 19,84,80,462

28.1 List of Interest expense(Amount in `)



169 Consolidated

(Amount in `)


Finance Charges:

Commitment Charges 21,363 4,51,272

Bank Charges for Remittance 22,18,971 2,13,788

Other Bank Charges 22,74,75,525 7,57,86,583

Guarantee Charges 23,39,57,946 19,18,12,242

Other Finance Charges 16,48,230 7,44,91,084

Other Bonds related charges 10,46,848 6,22,91,570

Deffered Revenue Exp.written-off 65,98,928 1,96,92,701

TOTAL 47,29,67,811 42,47,39,240

28.2 List of Other Borrowing Cost(Amount in ` )


28.3 Penal interest/commitment charges, if any, have not been shown separately and are included in interest& finance charges.

28.4 During the year, Net Interest & Finance charges pertaining to projects under construction amounting to`10,46,07,07,455 (P.Y. 10,56,19,24,291) have been capitalized. Further an amount of 22,24,37,172(P.Y 6,55,77,234) towards interest and finance charges has been charged to GLPL on pro-rata basis onthe funds utilized for GLPL.

Int. on WCL- Indian Bank 3,90,62,047 7,86,41,754

Int. on WCL- ANDHRA Bank - 2,93,13,199

Int. on WCL- Indian overseas Bank 78,35,67,446 45,18,95,139

Sub-Total (B) 5,00,92,36,323 2,90,31,86,437

Int. on Bonds 75,85,42,623 13,72,14,247

Sub-Total (C) 75,85,42,623 13,72,14,247

Total (A to C) 30,81,50,10,253 24,36,65,20,775


170 Consolidated

Amortisation of lease hold lands 9,51,290 8,18,395

Depreciation on Building 82,74,39,512 61,84,09,577

Depreciation on Hydraulic Works 77,76,04,209 51,43,48,382

Depreciation on Other Civil Works 18,20,69,396 10,82,19,418

Depreciation on Plant & Machinery 8,71,40,60,345 7,74,11,57,222

Depreciation on lines and Cables Net Works 2,58,19,268 3,92,37,680

Depreciation on Vehicles 9,46,971 8,32,826

Depreciation on Fixtures & Furnitures 59,56,750 44,55,542

Depreciation on Office Equipments 86,25,141 1,02,96,487

Dep. on Capital spares at generating stations 3,41,69,363 2,22,89,985

Dep. of PKCL's Fixed Assets 6,77,373 6,78,241

Dep. of GLPL's Fixed Assets 86,82,39,923 37,72,19,039

SUB TOTAL 11,44,65,59,541 9,43,79,62,793

Less:- Depreciation Capitalised 1,87,22,280 1,23,87,771

TOTAL 11,42,78,37,261 9,42,55,75,023

Note No. 29-: Depreciation & Amortisation Expenses(Amount in ` )


Rent, Rates & Taxes 3,14,16,747 1,00,71,538

Licence & Registration fee of Plant & Machinery 37,78,516 1,38,49,421

Insurance on Fixed Assets 14,55,38,453 12,56,46,868

Insurance on Vehicles and Others 20,51,274 19,55,637

Security Service Charges 37,60,99,884 33,76,65,188

Telephone,Telex & EPABX Expenses 1,19,41,578 1,14,38,470

Postage & Telegrame 7,12,643 7,96,689

Legal Charges 2,13,22,240 2,29,20,970

Payment to Auditors

i) As Statutory Auditors 6,77,780 7,30,674

ii) For Reimbursement of Expenses 1,28,144 -

iii) Other attestation service 3,47,396 7,399

Consultancy Charges 7,90,30,875 10,81,36,817

Hiring Vehicles (LV) - 16,22,841

Vehicle Hiring Charges(HV) 84,77,065 24,61,211

Note No. 30-: Other Expenses(Amount in ` )



171 Consolidated

30.1 In absence of determination of rent of buildings of the Company occupied by other successor Companiesand vice-versa neither income nor expenditure has been accounted for during the period. Further thecredit of HRA has also not been transferred / received in respect of residential accommodation owned byRVPN & occupied by employees of RVUN and vice-versa, respectively. As regards Common facilities atHead Office building like Electricity, Telephone, Security charge & other misc. charges etc. are concerned,these are shared by all the five successor entities of erstwhile RSEB and the share of RVUN is 28% of theexpenditure.

30.2 A CSR Policy has been approved by the Board of Directors of the Company in its 182 meeting held on10.02.2011. As per the said policy an amount of ` 5,90,70,326 is to be spent by the company till31 March 2016 (` 4,45,46,800 till 31 March 2015) against CSR activities towards its running powerstations whereas the company has spent 2,17,29,706 till 31 March 2016 (` 1,85,09,700 till 31 March2015). Further, as per the said policy the company has also to spend towards capital expenditure relatedto new projects, the complete details & quantum thereof is yet to be ascertained.

Tariff Fee 1,46,00,000 5,33,92,040

Conveyance expenses 10,00,918 8,01,258

Travelling expenses 76,11,754 65,84,183

Travelling expenses other than actual fare 28,56,032 11,10,173

Travelling allowance to employees 13,96,075 25,68,949

Advertisement of Tenders 8,37,141 10,42,921

Vehicle Running expenses 10,45,38,332 12,38,20,916

Other professional charges - 84,270

Festive Expenses 61,782 -

Transit Insurance 2,13,003 26,671

Newspapers & magazines 1,01,752 77,058

Fees and sunscription 4,37,881 9,41,837

Other miscellaneous expenses 8,33,48,201 5,91,61,715

Electricity Charges 10,39,991 3,55,052

Water Charges 1,43,164 93,938

Meeting Expenses-Out Side Office 3,350 2,436

Orderly Expenses 1,72,448 1,04,666

Sumptuary Expenses 2,421 3,143

Freight & Material related expenses 2,89,12,550 5,46,77,629

Sundry debit / credit balances written-off 8,477 (6,77,589)

Directors sitting fees 17,581 -

Repair and Maintainance 49,409 40,024

SUB TOTAL 92,88,74,859 94,15,15,013

Less:Administration and other expenses capitalised 12,71,50,483 18,25,28,426

TOTAL 80,17,24,376 75,89,86,587

(Amount in `)



172 Consolidated

A. Prior Period Income :-

Fuel related gains 13,72,63,857 4,85,44,320

Prior Period Revenue from sale of power 1,99,75,47,198 -

Interest income 3,16,30,741 (5)

Excess Prov. For Dep.in P.P. 96,62,60,000 0

Other excess provision 4,09,80,254 12,90,715

Other income 5,23,36,236 44,490

Less: Prior Period Income Capitalised (72,85,55,343) -

Sub Total (A) 2,49,74,62,944 4,98,79,520

B. Prior period expenses/loss :-

Interest & Finance Charges 13,23,33,578 (7,87,44,560)

Fuel related Loss (42,96,77,373) 26,15,39,768

Operating expenses 7,20,19,816 (1,86,30,083)

Employees cost (53,22,90,648) (3,52,777)

Repair & Maintainance (4,98,000) 4,98,000

Depreciation under Provided 4,76,22,133 4,74,28,626

Admn. & general expenses 43,96,196 (25,18,48,446)

Material Related Expenses 62,44,359 -

(69,98,49,939) (4,01,09,472)

Less: Prior Period Expenses Capitalised 7,28,193 2,95,85,318

Sub Total (B) (70,05,78,132) (6,96,94,790)

TOTAL (A-B) 3,19,80,41,076 11,95,74,310

Note No. 31-: Prior Period Items(Amount in ` )


Net Profit after tax as per Statement of ` (10,76,67,52,294) (26,79,16,23,981)Profit and Loss attributable to EquityShareholders (a)

Weighted Average number of equity shares No. 7,73,63,61,045 7,04,23,34,356used as denominator for calculating EPS (b)


Face Value per equity share ` 10 10

Note No. 32-: Earnings Per Equity Share (EPS) and Diluted EPS

Particulars Unit For the year ended For the year ended31st March, 2016 31st March, 2015

Basic and Diluted


173 Consolidated

Note No. 33 : Other Disclosures

33.1. The Subsidiaries and Joint Venture Companies considered in the financial statements areas follows:

Name of the Company Proportion(%) of Shareholding as on

31.3.2016 31.3.2015


1. Rajasthan State Coal Mining Company Limited* NIL 100.00

2. Chhabra Power Limited 100.00 100.00

3. Dholpur Gas Power Limited 100.00 100.00

4. Giral Lignite Power Limited 100.00 100.00

Joint Venture Companies

1. Parsa Kente Collieries Limited 26.00 26.00

2. Rajasthan Collieries Ltd. 26.00 26.00


33.2. Capital commitments:-

a) The estimated amount of contracts remaining to be executed on capital account, and not providedfor (net of advances) is 77,65,28,47,260/- (P.Y. 1,23,22,00,76,252/-) as at 31.03.2016.

b) Other Commitments:-

(i) New/Future Power Projects:- The State Government has earlier entrusted the companyto create additional 4950 MW by setting up the following New Power Projects .Presentstatus of the same has been disclosed as under:-

S. Project Installed Project RemarksNo. Capacity cost Rs.

MW (In cr.)

1 Banswara Supercritical 660 X 2 7,920 Process for cancellation of the administrativeUnit 1&2 and financial sanction of the project is under

consideration and final view will be taken byState cabinet.

2 Kalisindh Supercritical 660 X 2 7,920 A view has taken that looking to the presentUnit 3&4 power scenario it is felt that installation of

proposed Supercritical Units-3&4 at Kalisindhunder Case-2 may be deferred and same willbe reviewed & decided at later stage as perthe requirement of power for State.

3 Suratgarh Supercritical 660 X 2 7,920 No Preliminery action has been initiated.Unit 9&10 Ceases to thirteenth plan owing to heavy fuel

transportation cost.4 Kota Gas Thermal 3 X 110 1,320

Project5 Chhabra Gas Thermal 3 X 110 1,320 Ceases to thirteenth plan owing to heavy fuel

Project transportation cost and non availability of gas6 Dholpur Gas Extension 3 X 110 1,320

Stg-II


174 Consolidated

(ii) Provisional Disallowance of Capital Cost

While finalisation of the capital cost of new power project / Unit of the comapany,RERC has considered only 50% of overrun IDC and disallowed 50% LD. As thedisallowances are provisional subject to the approval of final capital cost of the Project/unit , the disallowed capital cost amounting ` 14,96,09,00,000 at this stage has notbeen accounted for.

33.3. Contingent liabilities :-

a) The company has outstanding bank guarantees given by the State Bank of Bikaner & Jaipur, State Bankof India and Bank of India in favour of following firms/companies/Ministry :-


1 State Bank of Ministry of Coal 46,80,00,000 As security for allocation of CoalBikaner & Jaipur Govt. of India Blocks

president of Indiaacting throughministry of coalShastri BhawanNew Delhi

2 State Bank of CMD South 5,29,20,000 For Coal supply to Chhabra Unit-IBikaner & Jaipur, Eastern Coal field (for security Deposits)Collectorate Ltd., Bilaspur;Branch, Jaipur

3 State Bank of M/s SECL 5,02,74,000 Coal supply to Suratgarh unit-VI (forBikaner & Jaipur Security Deposit)

4 State Bank of M/s SECL 3,96,90,000 Coal supply to Kota unit-VII (forBikaner & Jaipur Security Deposit)

5 State Bank of M/s SECL 1,08,10,800 Coal supply to KSTPS unit -7Bikaner & Jaipur,CollectorateBranch, Jaipur

6 State Bank of M/s SECL 2,38,21,200 Coal supply to CTPP unit -2Bikaner & Jaipur,CollectorateBranch, Jaipur

7 State Bank of SRCPL 4,73,85,800 For transportation of coal from coalBikaner & Jaipur block to Surajpur Road RailwayBanipark Station for further delivery of coal to

RVUN’s power stations.

8 State Bank of M/s SECL 2,85,76,800 For supply of Coal to CTPP unit-2 (asBikaner & Jaipur security Deposits)

9 SBBJ Collectorate Nominated 3,30,60,00,000 Parsa east & Kanta Basan coal MineBranch Jaipur authority, Ministry

of Coal, GoI


175 Consolidated

10 SBBJ Collectorate Under Secretary, 21,33,15,000 Kente Extension Coal BlockBranch Jaipur MoC, GoI

11 State Bank of The president of 2,38,60,000 For making E-payment to ECR onIndia, Exhibition India, Represented account of Coal Supply at KTPSRoad, Patna thought The FA &Branch, Bihar CAO, East Central


12 State Bank of The president of 3,46,23,000 For making E-payment to ECR onIndia, Exhibition India, Represented account of Coal Supply at SSTPSRoad, Patna thought The FA &Branch, Bihar CAO, East Central


13 Bank of India Nominated 85,70,00,000 For Parsa Coal MineAuthority, Ministryof Coal, GoI

14 Dena Bank Under Secretary, 30,00,00,000 For Kanta Coal MineMoC,GoI


1 State Bank of M/s GAIL(India)Ltd. 17,00,00,000 For Gas Supply to RGTPBikaner & Jaipur

2 State Bank of M/s GAIL(India)Ltd. 9,00,00,000 For Gas Supply to RGTP.Bikaner & Jaipur

3 State Bank of M/s GAIL(India)Ltd. 18,00,00,000 For Gas Supply at DCCPP.Bikaner & Jaipur

4 State Bank of The president of 6,00,00,000 For E-payment of Railways Freight forBikaner & Jaipur India, Represented transportation of coal to thermal

through The FA& power projects of RRVUNL.CAO,South Eastcentral Railway,Bilaspur

5 Bank of India, M/s SECR 15,00,00,000 For E-payment of Railways Freight forJaipur transportation of coal to thermal

power projects of RRVUNL.

b) The company has outstanding letter of credit/IRLC issued by the State Bank of Bikaner & Jaipur infavour of following firms :

c) Claims against the company not acknowledged as debts as at 31.03.2016

(i) At KTPS, SSTPS and DCCPP, a disputed claim of `43,98,07,156/-, `3,07,00,000/- &`10,79,611/- respectively on account of water cess claimed by Rajasthan State Pollution ControlBoard for which appeal have been filed with the Chairman RSPCB.


176 Consolidated

(ii) At KTPS and SSTPS Disputed claim on account of interest on delayed payment/Incentives of coalsupplies bills and others demanded by SECL amounting to ` 101,22,79,936/- & ` 38,13,34,884/-respectively. These claims are subject to verification and reconciliation. Further such claims shall beadmitted only after mutual discussions and acceptance of counter claim of RVUN by the other party.

(iii) Late payment charges of ` 39,85,57,126/- (P.Y. 3,45,33,943/-) booked by Parsa Kente CollieriesLtd (JV) as recoverable from company has not been booked since the said claim has not beenacknowledged as debt by the company.

(iv) An appeal is pending before the Chief Controlling Authority (Stamps), Ajmer, against a demand ofstamp duty & interest of 15,80,00,000 levied by the Additional Collector (Stamps) Jaipur. For filingsuch appeal 25% of the demand i.e 3,95,00,000 was deposited.

(v) The Indian Railway raised a demand of `36,19,58,000 (P.Y. `83,15,00,000) unilaterally withoutany proper logic/justification on company for disallowances of rebate on To pay surcharge for non-maintaining of minimum advance balance by SSTPS with railway.

(vi) M/s PKCL has claimed an amount of ` 78,00,00,000 (approx.) on account of Fixed cost and` 6,10,00,000/- (approx.) on account of price escalation. The matter is under subjudiced in thecourt, therefore, the liability has not been acknowledged by the company.

(vii) M/s SRCPL has raised claims ` 4,92,75,311 and also demanded interest on delayed paymentamounting to ` 63,04,445. Admissibility of the claims are still to be decided by the company.

(viii) Liability on account of the matters under litigation has not been provided for, as claims in respectthereof have not been entertained and are being contested. The total amount of liability which canreasonably be ascertained is ` 7,12,00,000. Other matter mostly pertains to the employees wherethe amount of probable liability/obligation is not ascertainable.

(ix) The Ministry of Coal vide letter dated 25.06.2007 allocated Parsa East and Kente Basan coal blockto the company in the state of Chattisgarh to meet the coal requirement of the companies powerprojects. Subsequently a Joint Venture Company was formed with Parsa Kente Collieries Ltd (Knownas PKCL) with Adani Enterprises Ltd.

(x) Taxation matters for which liability is disputed and provision is not made (computed on the basis ofassessments/demand made by the department):

Particulars Amount in `

Other taxation matter for which company is in appeal. 8,66,66,479

The Income-tax assessment of the company completed upto Assessment year 2013-14. Furtherappeal with the department is pending against the assessment order for the Assessment year 2001-02 to 2013-14.

The out flow on account of the claims against the company not acknowledged as debts and taxdisputes is contingent upon the decision of the courts/other authorities and may differ from theamounts disclosed as contingent liability on the basis of estimates.

33.4 (A) A Coal Mining and Delivery Agreement (CMDA) were signed with the Joint venture. As perCMDA, the schedule date of commencement of coal supply was 25 June 2011; however theactual 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


177 Consolidated

of coal supply date from 25 June 2011 to 25 March 2013 without levy of any penalty on JointVenture Company. “The Joint Venture Company has raised demand for price escalationamounting to ` 6.1 Crores as the actual date was shifted to 25 March 2013 and also claimedfixed charges amounting to `78 Crores on account of short quantity lifted by RVUN. As theabove dispute could not be resolved within the contractual provisions of CMDA. Therefore theabove case was referred to Sole Arbitrator. The Sole Arbitrator has passed Award on 27.05.2015in favour of Joint Venture Company namely PKCL. The Company has filed application undersection 34 of The Arbitration & Conciliation Act 1946 against this award. As above matter issubjudice in the court, therefore, the liability thereon cannot be assessed presently.

(B) As per CMDA, interest shall be payable on overdue payment at the prevailing lending rate ofinterest charged by SBI to RVUN for RVUN's working capital loan, in case the payment is notreleased within 15 days plus 7 days grace period (totaling to 22 days). The interest will bepayable only for the delayed period reckoned from 23rd day. The Joint Venture Company hasraised demand of 39,85,57,126 till 31st March, 2016 (`3,45,33,943 till 31st March, 2016) fordelayed payment. The Company has not assessed/quantify the interest liability presently. Suchcharges booked by PKCL as recoverable from company but have not been booked by companysince the said claim has not been acknowledged as debt by the company.

33.5 Track Access & Usages Agreement for payment of track access charges on account of utilization ofprivate railway side developed by M/s Sarguja Rail Corridor Pvt. Ltd. (SRCPL) for transportation of coalfrom Parsa East & Kanta Basan. Kente Extension and Parsa Coal blocks to Surajpur Road Railwaystation for delivery of coal to RVUN's power station has been signed between RVUN and SRCPL on22.07.2015.“As per terms of Track Access & Usages Agreement, there is Take or Pay obligation forshortfall in off-take of coal by RVUN. M/s SRCPL raised a debit note amounting to 4,92,75,311 againstTake 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 63,04,445 on account of delay payment.Admissiblity of claim is still to be decided, therefore not acknowledge as debt by the company.

33.6 Disclosure as per Accounting Standard-1 on “Disclosure of Accounting Policies” During the year, theRVUNL changes its accounting policy in respect to leave encashment from actual payment to accrual.The company has started to follow provision of AS-15- “Employee Benefit” in respect of leave encashmentand adopted Actuarial Valuation. Due to this change, current year employee cost increase by` 95,79,35,207/- (including ` 84,14,50,745/- till 31-03-2015) and profit for the year decreased by` 95,79,35,207/-. Similarly, Liability of Long Term Provision and Short Term Provision increases by` 86,46,79,259/- and 9,32,55,948/- respectively.

33.7 Note for Disinvestment

a) Chhabra TPP (4X250 MW U# 1 to 4 under operation + 2X660 MW under execution)

Approval of state cabinet received on 23.02.2016 for disinvestment of Chhabra TPP either to NTPC ondirect negotiation route or Assets sale basis or through open competative bidding. Expression of Interest(EOI) and Preliminary Information Memorandum (PIM) have been issued. The transaction is targeted tobe completed during the current financial year.

b) Kalisindh TPP (2X600 MW U# 1 and 2 under operation)

Approval of state cabinet has been received for disinvestment of Kalisindh TPP on 23.02.2016. FurtherRVUNL is advised to initiate the process of appointment of transaction advisor for sale of KaTPP onsimilar line of CTPP.


178 Consolidated

c) Giral Lignite Power Limited (2x125 MW Lignite based unit)

It is finally advised in the Taskforce meeting dated 29.04.2016 to go away with disinvestment throughopen bidding on 'as is basis' with existing fuel linkages. Revised Cabinet memo for sale of GLPL on 'as isbasis' is put up for state cabinet approval in its ensuing meeting. Expression of Interest (EOI) and PreliminaryInformation Memorandum (PIM) are ready and would be issued after cabinet approval.

33.8 RVUNL is engaged in the generation of electricity and selling thereof to the Distribution Companies.Generation of electricity is one and single product. Hence AS 17 ”Segmental Reporting” is not applicableon RVUNL.

33.9 Disclosure as required by Accounting Standard 18 (AS-18) “Related Party Disclosures” issued by TheICAI are as follows;

Names of the related party and description of relationship:

S. Particulars Period DIN / PAN Relatio-No. nship

(a) RRVUNL

1 Sh. Narendra Mal Mathur, CMD 01.04.2015 to 31.03.2016 DIN-03033375

2 Sh. Sanjay Malhotra, IAS, Director 01.04.2015 to 31.03.2016 DIN-00992744

3 Sh. Praveen Gupta, IAS, Director 01.04.2015 to 31.03.2016 DIN-03521006

4 Smt. Gayatri A Rathore, IAS, Director 01.04.2015 to 31.03.2016 DIN-05196259

5 Sh. Prakash Chand Jain, Director (Projects) 01.04.2015 to 31.08.2015 DIN-03545146

6 Sh. Arun Kumar Gupta, Director 01.04.2015 to 31.03.2016 DIN-06948144

7 Sh. Ashutosh Kr. Joshi, Director (Finance) & CFO 01.04.2015 to 31.03.2016 DIN-07080434

8 Sh. S.S. Meena, Director (Technical) 19.08.2015 to 31.03.2016 DIN-03319346

9 Sh. Ram Gopal Gupta, Director 19.08.2015 to 31.03.2016 DIN 00173937

10 Sh. M.K. Agarwal, Director(Projects) 30.09.2015 to 30.03.2016 DIN 07316044

11 Sh. S G V S Subrahmanyam, Company Secretary 01.04.2015 to 31.03.2016 AGDPS2124E

(b) Subsidaries and Joint Ventures

1 Sh. Narendra Mal Mathur 1.04.2015 to 31.03.2016 DIN-03033375

2 Sh. Vinay Prakash 1.04.2015 to 31.03.2016 DIN-03634648

3 Sh. Rajendra Ingale 1.04.2015 to 31.03.2016 DIN-05304897

4 Sh. R K Jain 1.04.2015 to 31.03.2016 DIN-06768290

5 Sh. Sanjay Malhotra 1.04.2015 to 31.03.2016 DIN-00992744

6 Sh. Gurjit Singh Bhatia 1.04.2015 to 31.03.2016 DIN-02548340

7 Sh. Ram Avtar Patodia 1.04.2015 to 31.03.2016 DIN-00227074

8 Sh. Rakesh Verma 1.04.2015 to 31.03.2016 DIN-07400105

9 Sh. M K Agarwal 1.04.2015 to 31.03.2016 DIN 07316044

10 Sh. V K Golani 1.04.2015 to 31.03.2016 DIN-07365259

11 Sh. S S Meena 1.04.2015 to 31.03.2016 DIN-03319346

Key

Man

ager

ial P

erso

nnel

Key

Man

ager

ial P

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179 Consolidated

33.10 a) No earning in foreign exchange was accrued during the year.

b) The foreign exchange outgo during the year was 6,73,30,56,728/- (P.Y. 7,57,90,14,208/-)

c) Value of components, stores and spare parts consumed (including Fuel, lubricants, etc.)

(Amount in ` )

Particulars % of total Current % of total Previousconsumption Year consumption Year

Indigenous 95.84% 74,12,67,32,887 85.77% 76,37,68,99,049

Imported 4.16% 3,21,60,23,442 14.23% 12,67,04,68,845

Total 100.00% 77,34,27,56,329 100.00% 89,04,73,67,894

33.11 The internal audit of the company is conducted by the Company’s own internal audit wing.

33.12 The Trade Receivables and Trade Payables balances are subject to reconciliation and confirmation.

33.13 As required by the Accounting Standard (AS-28) “Impairment of Assets” issued by the Institute of CharteredAccountants of India, the company has carried out the assessment of impairment of assets. There are noexternal/internal indicators which lead to any impairment of assets during the year.

33.14 During the year Commercial Operations (COD) of 600 MW (katpp-II) on dated 25.07.2015 was declared.

33.15 Licensed & installed capacities :-

Particulars Current Year Previous Year

Licensed capacity (MW) Not Applicable Not Applicable

Installed Capacity(MW) 5707.35 5232.35

33.16 a) Quantitative information in respect of Generation and Sale of Electricity:

(In Million Units)

PARTICULARS Units Generated Aux. Consumption Net Units Sold

A.Commercial Period

Coal 24,067.608066 2,329.459889 21,738.148177 (24,975.967793) (2,475.804641) (22,500.163152)

Gas 1,852.599200 110.497675 1,742.101525 (2,313.192600) (104.895519) (2,208.297081)

c) Employees remuneration and benefits include remuneration to the Chairman & ManagingDirector and Directors are as follows:-

Particulars 2015-16 (In `) 2014-15 (In `)

Salary & Allowances 76,48,862 54,18,455

Contribution to provident Fund andother funds 85,827 2,50,148

Total 77,34,689 56,68,603


180 Consolidated

Hydel 175.133204 1.249993 173.883211 (166.647001) (1.366864) (165.280137)

Sub-Total (A) 26,095.340470 2,441.207557 23,654.132913(27,455.807394) (2,582.067024) (24,873.740370)

B. Pre-commercial 307.660000 39.820890 267.839110Period (280.947571) (32.160274) (248.787297)

GRAND TOTAL 26,403.000470 2,481.028447 23,921.972023(A+B) (27,736.754965) (2,614.227298) (25,122.527667)

(Figures given in bracket are of previous year)

b) Quantitative information in respect of Sale of Fly Ash:

(QTY in MT)


19,19,947.47 12,85,000.38

33.17 During the year Giral Lignite Power Limited had revised a demand notice of 25,27,744/- for the A.Y.2008-09 from Income Tax Officer (TDS)-2 Jodhpur. The company has gone into further appeal beforeCommissioner of Income Tax ( Appeals) ( CIT-A) as well as ITAT, Jodhpur against the said order and thecompany has deposited ` 25,27,744/- against such demand. The Company has not booked the saidamount of ` 25,27,744/- as expenditure till the end of reporting period and same is standing as ShortTerms Loans and advances to others.

33.18 In Parsa Kente Collieries Limited the Income from Mining services includes recovery through disposal ofCoal rejects of `22,46,73,270 (P.Y. 2,91,33,021) which being a part of mining fee as per Coal miningand Delivery Agreement entered into by the company.

33.19 Disclosure as per Schdule III to the Companies Act, 2013

Name of the entity Net assets i.e. total assets Share in profit or lossminus total liabilities as for the year 2015-16

at 31.03.2016

As % of Amount As % of Amountconsolidated consolidatednet assets net assets

1 2 3 4 5

A. Parent

Rajasthan Rajya Vidyut Utpadan 117.21% 47,48,58,59,115 74.05% (7,97,32,83,700)Nigam Limited

B. Subsidiaries

1. Rajasthan State Coal Mining - - - - Company Limited*

2. Chhabra Power Limited 0.00% (3,21,639) 0.00% (30,553)


181 Consolidated

33.20 Annual disclosure as per requirement of Listing Agreement for Debt Securities

With respect to Parent, Subsidiary and Associate Companies:

S. No. Particulars Remarks

a) Particulars of loans and advances in the nature Loan to GLPL - Subsidiary - ` 6,62,08,94,034of loan to Sudsidiary, Associates (PY ` 580,65,59,674)

b) Loans and advances in the nature of loanswhere there is-

i) no repayment schedule or repayment beyond There is no repayment schedule in case of loansseven years and advance given to GLPL - Subsidiary

ii) no interest or interest below section 186 of Section 186 of the Companies Act, 2013 is notthe Companies Act, 2013 applicable on Infrastructure Companies.

c) Investments by the Loanee (Borrower) in the ` Nilshares of Parent company and subsidiarycompany, when the company has made a loanor advance in the nature of Loan

33.21 Assets and liabilities are presented as current or non-current as per criteria set out in Schedule III of TheCompanies 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 periodhas been considered for the purpose of classification of assets and liabilities into current and non-current.

33.22 There was a fire in the year 2012 in Giral Lignite Power Limited for which the insurance claim has beenreceived during the year amount to `67.07 Lakhs and has been shown under Other miscelleneousreceipt being the damage incurred had been repaired and expenditure had been considered as whensuch repair and maintainance done.

33.23 In Giral Lignite Power Limited the Balance under the head Provision for Liability for expense of 25.29Crores and Balance from net salary Payable a/c amounting to 76.40 Crore/- Lakhs has been transferredto Prior Period Expense a/c (being reversal of provisions made for expenses in earlier year), consideringthe liability has already been paid and provision are no more required for the same.

3. Dholpur Gas Power Limited 0.00% (3,23,960) 0.00% (30,686)

4. Giral Lignite Power Limited -11.51% (4,66,49,39,793) 12.85% (1,38,38,65,753)

C. Joint Ventures

1. Parsa Kente Collieries Limited -5.70% (2,30,80,42,747) 13.09% (1,40,95,68,364)

2. Rajasthan Collieries Ltd. 0.00% 6,95,570 0.00% 26,763

Total 40,51,29,26,542 (10,76,67,52,294)


Name of the entity Net assets i.e. total assets Share in profit or lossminus total liabilities as for the year 2015-16

at 31.03.2016

As % of Amount As % of Amountconsolidated consolidatednet assets net assets

1 2 3 4 5


182 Consolidated

33.24 (i) An appeal had been filed before National Green Tribunal (NGT), New Delhi against grant offorest Clearance to RVUNL in respect of Parsa East and Kente Basan (PEKB) Coal Block. NGThas passed its order vide which it has passed direction for setting aside of Forest clearance,remading back the case to MoEF and directed stoppage of work at PEKB mine site, where thecomapny is working as Mine Development Operator.“Against the order of NGT, RVUNL hasfiled appeal before the Supreme Court of India which has passed the direction as “We stay thedirection in the impugned order that all works commenced by the appellant pursuant to theorder dated 28th March 2012 passed by the state of Chattisgarh under section 2 of the ForestConservation Act, 1980 shall stand suspended till further orders are passed by the Ministry ofEnvironment and Forests.” Appeal filed by RVUNL before Supreme Court is pending foradjudication.

(ii) An appeal has been filed before NGT, New Delhi against grant of environment Clearance toRVUNL in respect of PEKB Coal Block. NGT vide its order dated 25-09-2014 has dismissed thesaid appeal being barred by time.

33.25 RERC vide Order dated 12.08.2015 has sanctioned additional capital cost for Giral Unit-1 & Unit-2, thesaid units already transferred to GLPL. Accordingly, GLPL recognised the same in the books of accountsof 2015-16 as Current Liability (payable to RVUN) for 94,79,36,501/- (` 88,95,33,545/- for Unit-2 &` 5,84,02,956/- for Unit-1) (Net of Amortisation) being expenditure charged to Statement of Profit &Loss by RVUN in earlier years and not passed on to GLPL. RVUN booked the same under the head“Income persuant to RERC Order” with corresponding accounting of receivable from GLPL. As per thesaid RERC Orders, Revenue of 94,79,36,501/- has been recognised during the year by the company.

33.26 Figures of the current & previous year have been rounded off to nearest Rupee.

33.27 During the year some of the accounting policies have been added/ reworded/ redrafted/ modified forbetter presentation and to bring them in line with the accounting standards. However these changeshave no material impact on the financial statements.

33.28 Previous year’s figures has been restated, regrouped and rearranged, wherever considered necessary, toconfirm to this year’s classifications.





M.No. 3962 M.No. 072936


COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDERSECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE STANDALONE FINANCIALSTATEMENTS OF RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED FOR THEYEAR ENDED 31st MARCH, 2016

The preparation of financial statements of Rajasthan Rajya Vidyut Utpadan Nigam Limited for the year ended31 March, 2016 in accordance with the financial reporting framework prescribed under the Companies Act, 2013is the responsibility of the management of the company. The Statutory Auditors appointed by the Comptrollerand Auditor General of India under section 139(5) of the Act are responsible for expressing opinion on thefinancial statement under section 143 of the Act based on independent audit in accordance with the standards onauditing prescribed under Section 143(10) of the Act. This is stated to have been done by them vide their AuditReport dated 7 September, 2016.

I, on behalf of the comptroller and Auditor General of India, have conducted a supplementary audit underSection 143(6)(a) of the Act of the financial statements of Rajasthan Rajya Vidyut Utpadan Nigam Limited for theyear ended 3l March, 2016. This supplementary audit has been carried out independently without access to theworking papers of the statutory Auditors and is limited primarily to inquiries of the Statutory Auditors and companypersonnel and a selective examination of some of the accounting records. 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 tomy attention and which in my view are necessary for enabling a better understanding of the financial statementsand the related Audit Report:

A. Comments on Financial Position

Balance Sheet

(I) Equity and Liabilities

Current Liabilities

Other Current Liabilities (Note No. 11) ` 5026.47 crore

(a) The above is understated by 117.51 crore due to non provisioning of liabilities for thebills towards material supplied and works carried out by the M/s Bharat Heavy ElectricalsLimited during the year 2015-16 for the super critical units at Suratgarh Thermal PowerStation, Suratgarh. Consequently, Capital Work in progress has been understated by` 117.51 crore.

(b) The above does not include 1.44 crore (` 0.24 crore for the year 2015-16 and 1.20crore upto the year 2014-15) on account of water charges payable to water resourcesDepartment for the water utilized by Kalisindh Thermal Power Project. This has resultedunderstatement of water charges and prior period expenses amounting to 0.24 croreand 1.20 crore respectively as well as understatement of other current liabilities to thesame extent. Consequently, loss for the year has been understated by 1.44 crore.

(II) Assets

Non-Current Assets

Fixed Assets

Tangible Assets (Note No. 13) ` 18738.84 crore

(a) This includes 3.64 crore being the cost of raising finance. As per accounting policy no1.14(b), the expenses incurred on raising finance should be charged to revenue in theyear in which these are incurred. However, the company capitalized 3.64 crore beingthe cost of finance raised through bonds for Kalisindh Unit-2. This has resulted inunderstatement of expenses by 3.64 crore and overstatement of tangible assets by 3.64 crore. Consequently, loss for the year has also been understated to the sameextent.

(b) The above is overstated by 1.33 crore due to non charging of depreciation on additionof fixed assets during the year 2015-16. This has resulted in overstatement of tangible

183 Standalone


assets by ` 1.33 crore(plant & machinery by ` 0.41 crore and building ` 0.92 crore).Consequently, depreciation and amortization expense as well as loss for the year havebeen understated by ` 1.33 crore.

B. Comments on profitability

Statement of profit & Loss

Expenses

Finance Cost (Note No. 29) ` 1979.74 crore

This includes 3.53 crore being interest during construction for additional capitalization for overhaulingworks carried out by Suratgarh Super critical Thermal Power Station (SSTPS), Suratgarh for its units1 to 6.

The amount of interest during construction has been charged to finance cost in the profit and loss accountinstead of capitalization of the same. This has resulted in overstatement of finance cost by 3.53 croreand understatement of capital work in progress to the same extent. Consequently, loss for the yearhas been overstated to this extent.

Standalone


Management Response to the comments of the comptroller and AuditorGeneral of India under section 143(6) (b) of the companies Act, 2013on the Standalone Financial Statements of Rajasthan Rajya VidyutUtpadan Nigam Limited for the year ended 31 March 2016.A. Comments on Financial Position

Balance Sheet

(I) Equity and Liabilities

Current Liabilities

Other Current Liabilities (Note No. 11) ` 5026.47 crore

(a) As per terms of payment clause no. 4.0(iii) of EPC contract with M/s BHEL "The paymentis to be made against receipt of equipment at site and physical verification by RVUNLtd.". Keeping in view of the above payment clause, the liability created in the books ofaccounts for the F.Y. 2015-16 is only of the duly verified bills as were received withMRC issued up till 31.03.2016. Although, the bills amounting to Rs. 117.51 croresraised by M/s BHEL bearing date on or before 31.03.2016 but whose MRC was issuedin F.Y. 2016-17, therefore, the have been accounted for in F.Y. 2016-17.

(b) Agreed. Necessary accounting adjustment in this regard shall be made in F.Y. 2016-17.

(II) Assets

Non-Current Assets

Fixed Assets

Tangible Assets (Note No. 13) `18738.84 crore

(a) It was an inadvertent error. Necessary rectification has been made in the accounts of2016-17.

(b) Observation noted. Necessary adjustment/rectification shall be made in the accounts of2016-17.

B. Comments on profitability

Statement of profit & Loss

Expenses

Finance Cost (Note No. 29) ` 1979.74 crore

Observation noted. Necessary adjustment/rectification shall be made in the accounts of 2016-17.

C. Comments on Independent Auditors' Report

Management concurs with the view of C& AG.

The C& AG has issued Nil qualification Audit report with regards to Consolidated Financial Statementsas nothing significant has came to their knowledge which would give rise to any comment upon supplementto statutory Audit Report.

185 Standalone



186 Consolidated

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDERSECTION 143 (6)(b) READ WITH SECTION 129(4) OF THE COMPANIES ACT, 2013 ONTHE CONSOLIDATED FINANCIAL STATEMENTS OF RAJASTHAN RAJYA VIDYUTUTPADAN NIGAM LIMITED FOR THE YEAR ENDED 31 MARCH 2016

The preparation of consolidated financial statements of Rajasthan Rajya Vidyut Upadan Nigam Limitedfor the year ended 31 March 2016 in accordance with the financial reporting framework prescribed under theCompanies Act, 2013 is the responsibility of the management of the company. The statutory auditors appointedby the Comptroller and Auditor General of India under section 139(5) read with section 129(4) of the Act areresponsible for expressing opinion on the financial statements under section 143 read with section 129(4) of theAct 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 7 September, 2016.

I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary auditunder section 143(6)(a) read with section 129(4) of the Act of the consolidated financial statements of RajasthanRajya Vidyut Utpadan Nigam Limited for the year ended 31 March, 2016. We conducted a supplementary auditof the financial statements of Rajasthan Rajya Vidyut Utpadan Nigam Limited and Giral Lignite Power Limitedbut did not conduct supplementary audit of the financial statements of subsidiaries and jointly controlled entitieslisted in Annexure for the year ended on that date. Further, section 139(5) and 143(6)(b) of the Act arenot applicable to Parsa Kente Collieries Limited and Rajasthan Collieries Limited being privateentitiesf or appointment of their Statutory Auditors nor for conduct of supplementary audit. Ac-cordingly, C&AG has either appointed the Statutory Auditors nor conducted the supplementaryaudit of these companies. This supplementary audit has been carried out independently without access to theworking papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and com-pany personnel and a selective examination of some of the accounting records.

On the basis of my audit nothing significant has come to my knowledge which would give rise to anycomment upon or supplement to statutory auditors' report.

For and on the behalf ofThe Comptroller and Auditor General of India

(S. Alok)Accountant General

(Economic & Revenue Sector Audit)Rajasthan, Jaipur

Place: JaipurDate : 28.11.2016


187 Consolidated

Annexure

List of subsidiaries and jointly controlled entities of Rajasthan Rajya Vidyut Utpadan Nigam Limitedwhose financial statements for the year 2015-16 were not audited by the Comptroller and Auditor General ofIndia.


1. Chhabra Power Limited

2. Dholpur Gas Power Limited.

3. Rajasthan State Coal Mining Company Limited

Joint Controlled Entities

1. Parsa Kente Collieries Limited

2. Rajasthan Collieries Limited


188 Consolidated

MANAGEMENT RESPONSE TO THE COMMENTS OF THE COMPTROLLER AND AUDI-TOR GENERAL OF INDIA UNDER SECTION 143(6) (B) READ WITH SECTION 129(4)OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTSOF RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED FOR THE YEAR ENDED31 MARCH 2016.

The C& AG has issued Nil qualification Audit report with regards to Consolidated Financial Statementsas nothing significant has came to their knowledge which would give rise to any comment upon supplement tostatutory Audit Report.

Subsidiary Companiesof

RRVUNL

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

10th ANNUAL REPORT

2015-2016

BOARD OF DIRECTORS(As on AGM)1. Sh. U.D. Khan - Director

(DIN-07210365)2. Sh. S S Meena - Director

(DIN-03319346)3. Sh. M.K. Agarwal - Director

(DIN-07316044)

AUDITORSBADAYA & CO.Chartered Accountants106, Golden Sunrise,C-36(B), Lajpath Marg,Near Rajdhani Hospital,C-Scheme, Jaipur-302003Ph. : 0141-2363149, 2360344

BANKERSTATE BANK OF BIKANER & JAIPUR

REGD. OFFICE & HEAD OFFICEVIDYUT BHAWANJANPATH, JYOTI NAGAR, JAIPUR-302005Phone : 0141-2740692Fax : 0141-2740633Website : www.rajenergy.com

www.rvunl.com

Contents

S. Particulars PageNo. Nos.

1. Director's Report 193-202

2. Statutory Auditors Report 203-207

3. Financial Statements along 208-217with Singnificant AccountingPolicies & Notes on Accounts

4. Supplementry Audit Report 218

ANNUAL REPORT 2015-16 CHHABRA POWER LIMITED

193

DIRECTOR’S REPORTTo the Members,

Your Directors are pleased to present the 10th Annual Report on the business and affairs of the Company togetherwith the Audited statement of Accounts for the financial year ended 31st March, 2016.

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 incurredloss of Rs. 30,553/- in the financial year 2015-16 against the loss of 19,190/- in the previous year2014-15.

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 theyear.

4. Share Capital

The Authorized Share Capital of the Company remains Rs.1 Crore divided into 10,00,000 Equity Sharesof Rs.10/- each. The paid-up Share Capital of the Company is 50,000 fully paid-up Equity Shares ofRs.10/- each aggregating to Rs.5,00,000/- held by the holding company, Rajasthan Rajya Vidyut UtpadanNigam, 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 hasbeen 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 andcommitments affecting the financial position of the Company between the end of the financial year andthe 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 thegoing 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.

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 U D Khan, Shri S S Meena and Shri M K Agarwal have beenappointed as Directors of the Company.

During the period under review, Shri Sanjay Malhotra, IAS, Shri P C Jain and Shri Ashutosh Kr. Joshiceased to be Directors of the Company.


194

11. Auditors

The Comptroller & Auditor General of India appointed M/s Badaya & Co., Chartered Accountants,Jaipur as the Statutory Auditors of the Company, for the financial year 2015-16. There are no comments/observations made by the Statutory Auditors on the accounts of the Company for the financial yearended 31.3.2016. The report/ comments of the Comptroller & Auditor General of India will be circulatedseparately.

12. Deposits

The Company has not accepted or renewed any amount falling within the purview of provisions ofSection 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 forfurnishing 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 Section92 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

Since no commercial activity has undertaken by the Company, no initiatives have been taken by theCompany towards corporate social responsibility.

16. Board Meetings

During the financial year 2015-16, five (5) meetings of the Board of Directors of the Company were heldas detailed below:

S.No. Number and date of Directors Attended the Directors absentMeeting Meeting from Meeting

1. 35th Board Meeting held on Sh. N M Mathur, None06.05.2015 Sh. Sanjay Malhotra, IAS

Sh. P C JainSh. Ashutosh Kr. Joshi

2. 36th Board Meeting held on Sh. N M Mathur Sh. U D Khan12.08.2015 Sh. P C Jain

Sh. Ashutosh Kr. Joshi

3. 37th Board Meeting held on Sh. N M Mathur None21.09.2015 Sh. U D Khan

Sh. Ashutosh Kr. JoshiSh. S S Meena

4. 38th Board Meeting held on Sh. N M Mathur Sh. M K Agarwal23.11.2015 Sh. U D Khan

Sh. S S MeenaSh. Ashutosh Kr. Joshi

5. 39th Board Meeting held on Sh. N M Mathur Shri U D Khan09.03.2016 Sh. Ashutosh Kr. Joshi

Sh. M K AgarwalSh. S S Meena


195


Pursuant to Section 134 (5) of the Companies Act, 2013, the Directors to the best of their knowledge andbelief confirm that:






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 areno 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 andimplementation of a risk management policy for the Company including identification therein of elementsof 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 Government ofRajasthan, especially the Departments of Energy, Finance, etc. apart from the holding company, RajasthanRajya Vidyut Utpadan Nigam Ltd.


(Narendra Mal Mathur)Place : Jaipur DIN-03033375Date : 20.07.2016 Chairman


196

Annexure-I


As on the financial year ended on 31st March 2016

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of theCompanies (Management and Administration) Rules, 2014]


1. CIN U40109RJ2006SGC023353

2. Registration Date 22nd November, 2006

3. Name of the Company Chhabra Power Limited


5. Address of the Registered office and Vidyut Bhawan, Janpath, Jyoti Nagar,contact details Jaipur- 302005


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


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 the % to total turnover ofNo. products/ services Product/ service the company

1. Generation of Electricity 35102 No commercial activity hasbeen carried out during thefinancial year



Associate held

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


197

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


CATEGORY OF No. of Shares held at the No. of Shares held at the end of % changeSHAREHOLDER beginning of the year the year during

the year


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 NILCorporate

(e) Financial - - - - - - - - -Institutions/Banks

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

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

(2) FOREIGN

(a) Individuals - - - - - - - - -(NRIs/ForeignIndividuals)

(b) Bodies - - - - - - - - -Corporate

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

(d) QualifiedForeign Investor - - - - - - - - -

(e) Others - - - - - - - - -

Sub-Total - - - - - - - - -A(2) :

Total A=A(1) NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL+A(2)

(B) PUBLICSHAREHOLDING

(1) INSTITUTIONS

(a) Mutual Funds/ - - - - - - - - -UTI

(b) Financial - - - - - - - - -Institutions/Banks

(c) CentralGovernment - - - - - - - - -

(d) StateGovernment - - - - - - - - -

(e) Venture Capital - - - - - - - - -Funds

(f) Insurance - - - - - - - - -Companies


198

(g) Foreign - - - - - - - - -InstitutionalInvestors

(h) Foreign VentureCapital Investors - - - - - - - - -

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

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


(a) Bodies - - - - - - - - -Corporate

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

(i) Individuals - - - - - - - - -holding nominalshare capitalupto Rs.1 lakh

(ii) Individuals - - - - - - - - -holding nominalshare capital inexcess of Rs.1lakh

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

CLEARING - - - - - - - - -MEMBERS

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

(d) Qualified Foreign - - - - - - - - -Investor

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

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

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

(C) Shares held by - - - - - - - - -custodians,against GDRsADRs

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


Sr. Shareholder's Name Shareholding at the Shareholding at theNo. beginning of the year end of the year

No. of % of total % of Shares No. of % of total % of Shares % changeShares Shares of Pledged/ Shares Shares of Pledged/ in share

the encumbered the encumbered holdingcompany to total company to total during

shares shares the year

1 Rajasthan Rajya Vidyut 50,000 100 NIL 50,000 100 NIL NILUtpadan Nigam Limited

Total 50,000 100 NIL 50,000 100 NIL NIL


199


1. Government of Rajasthan Shareholding at the beginning Cumulative Shareholding duringof the year the year

No. of shares % of total No. of shares % of totalshares of the shares of the

company company

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

Date wise Increase / Decrease inPromoters Share Holding duringthe year specifying the reasons NILfor increase/Decrease(e.g. allotment / Transfer / Bonus/Sweat equity etc.)

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


S. Shareholding at the beginning Cumulative Shareholding duringNo. of the year the year

For each of the Top 10 No. of Shares % of total No. of Shares % of totalShareholders shares of the shares of the

company company


Date wise Increase / Decrease inPromoters Share Holding duringthe year specifying the reasons for NILincrease/Decrease (e.g. allotment /Transfer / Bonus/ Sweat equity etc.)

At the end of the year (or on thedate of separation, if separatedduring the year)


S. Shareholding of each director Shareholding at the beginning Cumulative Shareholding duringNo. and each Key Managerial of the year the year

Personnel

No. of Shares % of total No. of Shares % of totalshares of the shares of the

company company


Date wise Increase / Decrease in - - - -Promoters Share Holding duringthe year specifying the reasonsfor increase/Decrease(e.g. allotment / Transfer/Bonus/Sweat equity etc.)



200

5. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment



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 Indebtednessduring the financial year

Addition Reduction -- -- -- --

Net Change -- -- -- --

Indebtedness at the end ofthe year





6. Remuneration of Directors and Key Managerial Personnel :

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

S. Particulars of Remuneration Name of MD/WTD/Manager TotalNo. Amount

1. Gross Salary -- --

(a) Salary as per provisions contained -- -- -- --in section 17(1) of the Income TaxAct

(b) Value of perquisites u/s 17(2) -- -- -- --Income Tax Act, 1961

(c) Profits in lieu of salary underSection 17(3) IncomeTax Act, 1961 -- -- -- --

2. Stock Option -- -- -- --

3. Sweat Equity -- -- -- --

4. Commission-As % of profit-Others, specify -- -- -- --

5. Others, please specify -- -- -- --

Total (A) -- -- -- --

Ceiling as per the Act --


201

(B) Remuneration to Other Directors: NIL

S. Particulars of Remuneration Name of Directors TotalNo Amount


(a) Fees for attending boardcommittee meetings - - - -



Total (1) - - - -





Total (2) - - - -

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




S. Particulars of Remuneration Name of Key Managerial Total AmountNo. Personnel

1. Gross Salary NIL NIL

(a) Salary as per provisions containedin section 17(1) of the IncomeTax Act NIL NIL

(b) Value of perquisites u/s 17(2)Income Tax Act, 1961 NIL NIL

(c) Profits in lieu of salary underSection 17(3) Income TaxAct, 1961 NIL NIL

2. Stock Option NIL NIL

3. Sweat Equity NIL

4. Commission- As % of profit- Others (Variable Pay) NIL NIL

5. Others, please specify NIL NIL

Total (A) NIL NIL


202


Type Section Brief Details of Authority Appealof the Description Penalty / [RD / NCLT made,

Companies Punishment/ / COURT] if anyAct Compounding (give Details)

fees imposed

A. COMPANY

Penalty - - - - -



B. DIRECTORS

Penalty - - - - -




Penalty - - - - -



For Chhabra Power Limited

(Narendra Mal Mathur)Place : Jaipur ChairmanDate : 20.07.2016 DIN-03033375


203

BADAYA & CO. 106, Golden Sunrise, C-36(B), Lajpat MargChartered Accountants Near Rajdhani Hospital, C-Scheme, Jaipur-302003

Ph. : 0141-2363149, 2360344E-mail : [email protected]

INDEPENDENT AUDITOR’S REPORTTOTHE MEMBERS OFCHHABRA POWER LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of CHHABRA POWER LIMITED ("theCompany"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and theCash Flow Statement for the year then ended, and a summary of the significant accounting policies and otherexplanatory information.

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 Companies Act,2013 ("the Act") with respect to the preparation and presentation of these standalone financial statements thatgive a true and fair view of the financial position, financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India, including the Accounting Standards specifiedunder Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and other irregularities; selection and applicationof 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 ensuringthe accuracy and completeness of the accounting records, relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from material misstatement, whether due to fraudor error.


Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of theAct. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal financial control relevant to the Company's preparation of the financialstatements 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 the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of thefinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaidfinancial statements give the information required by the Act in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India, of the state of affairs of the companyas at 31st March, 2016 and its loss and its cash flows for the year ended on that date.


204


1. As the Company is governed by Electricity Act 2003, the provisions of the Act have prevailed whereverthe 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 CentralGovernment 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 paragraph 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 onthe compliance to the Directions issued by C& AG.

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

(a) We have sought and obtained all the information and explanations which to the best of ourknowledge 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 sofar as it appears from our examination of those books.

(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt withby this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid standalone financial statements comply with the AccountingStandards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)Rules, 2014.

(e) As per Ministry of Corporate Affairs Notification dated 05.06.2015, Section 164 (2) of the Act isnot applicable on the Government Company.

(f) In our opinion, the Company has, in all material respects, an adequate internal financial controlssystem over financial reporting and such internal financial controls over financial reporting wereoperating effectively as at 31 March 2016.

(g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of ourinformation and according to the explanations given to us:

i. There was no litigation pending during the period reported;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There was no unpaid amount lying in accounts which is required to be transferred tothe Investor Education and Protection fund by the Company.

For Badaya & Co.Chartered Accountants

Firm’s Registration No. 006395C

(CA Rohit Badaya)Partner

Place : Jaipur M. No. 078599Date : 05.07.2016


205



ANNEXURE-A

Annexure Referred in our report of even date of CHHABRA POWERLIMITED on the financial statement for the year ended March 31, 2016

(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 possess any inventory therefore clause3(ii) of the Order are not applicable to the Company.

(iii) According to the information and explanations provided to us, the Company has not granted any loan,secured or unsecured to Companies, firms, Limited Liability Partnerships or other parties covered in theregister maintained under section 189 of the Companies Act 2013. And therefore:

(a) Not applicable being, no loan granted.

(b) Not applicable being, no loan granted.

(c) Not applicable being, no loan granted.

(iv) According to the information and explanations provided to us, Company has not entered in anytransactions of loan & investment covered under Section 185 and 186 of the Act.

(v) Not Applicable being, company has not accepted deposits.

(vi) The Company has not started its operations therefore requirement of maintenance of cost records notapplicable on company.

(vii) According to the information and explanations given to us, in respect of statutory dues:-

(a) the Company has not started any operational activity, there is no undisputed statutory dues inrespect of 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 with theappropriate authorities.

(b) there is no dues of income tax or sales tax or service tax or duty of customs or duty of excise orvalue added tax which have not deposited on account of any dispute as on 31.03.2016

(viii) The Company does not have any loans or borrowings from any banks, financial institution, andgovernment or debenture holders during the year. Accordingly paragraph 3(viii) of the Order is notapplicable.

(ix) The Company did not raise any money by way of initial public offer or further public offer (includingdebt instruments) and term loans during the year. Accordingly paragraph 3(ix) of the Order is not applicable.

(x) To the best of our knowledge & according to the information and explanations given to us, no materialfraud by the company or on the Company by its officers or employees has been noticed or reportedduring the year.

(xi) As per Ministry of Corporate Affairs Notification dated 05.06.2015, Section 197 read with Schedule V tothe 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 nidhicompany. Accordingly, paragraph 3(xii) of the order is not applicable.


206

(xiii) In our opinion and according to the information and explanations given to us, the company did notentered into any contracts or arrangements with related parties during the year in pursuance to section177 & 188 of the Companies Act, 2013.

(xiv) According to information and explanations given to us and based on our examination of the records ofthe Company, the Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year.

(xv) According to information and explanations given to us and based on our examination of the records ofthe Company, the Company has not entered into non-cash transactions with directors or persons connectedwith 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.






207



ANNEXURE-B

Annexure Referred in our report of even date of CHHABRA POWERLIMITED on the financial statement for the year ended March 31, 2016

S.No. Directions Impact

1 Whether the company has clear title/lease deeds for Not Applicable, being company has nofreehold and leasehold respectively? If not please freehold or leasehold land.state the area of freehold and leasehold land forwhich title/lease deeds are not available?

2 To report whether there are any cases of waiver/write It was informed to us that there is no case ofoff of debts/loans/interest etc. If yes, the reasons waiver /write off of debts/ loans /interest etc.thereof and the amount involved.

3 Whether proper records are maintained for Not applicable. Being company has neitherinventories lying with third parties and assets received any asset as gift/grant(s) fromreceived as gift/grant(s) from Government or other Government / other authorities nor there hasauthorities. been any inventories lying with third parties.






208

I. EQUITY AND LIABILITIES

(1) Shareholders’ Funds

(a) Share Capital 2 5,00,000 5,00,000

(b) Reserves & Surplus 3 (3,21,639) (2,91,086)

(2) Current Liabilities

(a) Other Current Liabilities 4 29,141 24,720

(b) Short-term Provisions 5 - -

TOTAL 2,07,502 2,33,634

II. ASSETS

(1) Non-current Assets

(a) Long Term Loans and Advances 6 57,151 54,953

(b) Other Non-Current Assets 7 - -

(2) Current Assets

(a) Cash and Cash Equivalents 8 8,216 8,846

(b) Short Term Loans and Advances 9 - -

(c) Other Current Assets 10 1,42,135 1,69,835

TOTAL 2,07,502 2,33,634

Significant Accounting Policies 1

Other Disclosure & Notes onFinancial Statements 16


(N.M. MATHUR) For BADAYA & Co.DIN-03033375 Chartered Accountants

Chairman FRN 006395C

S.S. MEENA (ROHIT BADAYA)DIN-03319346 Partner

Director M.No. 078599

Place : JaipurDate : 05-07-2016

BALANCE SHEET AS AT 31st MARCH, 2016CIN - U40109RJ2006SGC023353

(Amount in ` )



209

I. Revenue:

(1) Other Income 11 2,198 2,215

TOTAL 2,198 2,215

II. Expenses:

(1) Finance Costs 12 630 618

(2) Administrative and Other Expenses 13 31,875 20,787

Total Expenses 32,505 21,405

Profit before Prior Period Items and Taxes (30,307) (19,190)

Prior Period Expenses 14 (246) -

Profit beforeTaxes (30,553) (19,190)

Tax Expenses:

Current Tax - -

Income Tax (Earlier Year Tax) - -

Deferred Tax - -

PROFIT FOR THE YEAR (30,553) (19,190)

Earnings Per Equity share ofPar Value of Rs.10/- Each 15

(1) Basic & Diluted (0.61) (0.38)



STATEMENT OF PROFIT AND LOSSFOR THE YEAR ENDED 31st MARCH, 2016

CIN - U40109RJ2006SGC023353

(Amount in ` )

Particulars Note For the year ended For the year endedNo. 31st March, 2016 31st March, 2015








210

CASH FLOW STATEMENT 2015-16CIN - U40109RJ2006SGC023353

Inflow (Outflow)(Amount in ` )

S.No. PARTICULARS Current Year Previous Year

Net Profit before taxation (30,553) (19,190)

Adjustments

Add:- Depreciation 0 0

Adjusted profit for the year (30,553) (19,190)

(A) Cash Flow from Operating Activities

1 Other Current Assets 27,700 15,152

2 Non-Current Assets (2,198) (513)

3 Current Liabilities and Provision 4,421 3,933

4 Misc. Expenditure/ to the extent not written off / adjusted - -

Net Cash Flow from Operating Activities (630) (618)

(B) Cash Flow from Investing Activities

Cash used in Investing Activities 0 0

(C) Cash Flow from Financial Activities

Net Cash surplus from Financing Activities 0 0

(D) Net increase (Decrease) in Cash &Cash Equivalent (A+B+C) (630) (618)

(E) Opening Cash & Cash Equivalent 8,846 9,464

(F) Closing Cash & Cash Equivalent 8,216 8,846








211

NOTE NO. 1 : SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of Accounting :

a) The Financial Statements of the Company have been prepared under historical cost conventionand in accordance with generally applicable accounting standards issued by the Institute ofChartered Accountants of India, the provisions of Companies Act, 2013, the applicable provisionsof Electricity Act, 2003 and generally accepted accounting principles as adopted consistently bythe Company.

b) The Company generally follows Mercantile System of Accounting and recognizes significantitems of income and expenditure on accrual basis.

1.2 General :

a) Except wherever stated Accounting Policies are consistent with the generally accepted accountingprinciples and have been applied.

b) No business was transacted during the year. Only General Administrative expenses and Incomeshave been charged to the Statement of Profit & Loss.


212

*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 10. Each holder ofequity 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 theremaining assets of the company, after the distribution of all preferential amounts.

1 Authorised

10,00,000 Equity shares of 10/- each 1,00,00,000 1,00,00,000

2 Issued,Subscribed & Paid Up

50,000 Equity shares of ` 10/- each fullypaid up (50,000) 54.600 5,00,000 5,00,000

5,00,000 5,00,000

NOTES ON FINANCIAL STATEMENT

SHAREHOLDERS’ FUNDS

NOTE NO. 2 : SHARE CAPITAL(Amount in ` )

S. Particulars Account As at As atNo. Code 31st March, 2016 31st March, 2015

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

S. Particulars As at As atNo. 31st March, 2016 31st March, 2015

1 Rajasthan Rajya Vidyut Utpadan Nigam Limited &its Nominees (Holding Company) 50,000 50,000

% of Holding 100.00% 100.00%

(ii) Details of Shares in the company held by each shareholder holding more than 5percent shares

S. Name of Shareholder As at As atNo. 31st March, 2016 31st March, 2015

No. of Shares held No. of Shares held


213

1 Expenses Payable 46.430 29,141 24,720

Total 29,141 24,720

CURRENT LIABILITIES

NOTE NO. 4 : OTHER CURRENT LIABILITIES(Amount in ` )


1 Provision for Income Tax 46.800 - -

Total - -

NOTE NO. 5 : SHORT TERM PROVISIONS(Amount in ` )


1 Security Deposit with C.T.O.(NSC) 28.915 33,000 33,000

2 Income Accured but not due(NSC Interest) 28.310 24,151 21,953

Total 57,151 54,953

NON-CURRENT ASSETS

NOTE NO. 6 : LONG TERM LOANS AND ADVANCES(Amount in ` )


1 Opening Balance 58.210 (2,91,086) (2,71,896)

2 Add:- Net Profit after tax transferredfrom Statement of Profit & Loss (30,553) (19,190)

Closing Balance (3,21,639) (2,91,086)

NOTE No. 3 : RESERVES & SURPLUS(Amount in ` )



214

1 Miscellaneous Expenditure to the 17.225 to 18.100 - -extent not written off

[see Descriptive Note (i)]

Total - -

NOTE NO. 7 : OTHER NON-CURRENT ASSETS(Amount in ` )


1 Balance with Bank in Current 24.401 8,216 8,846Account with SBBJ, Jaipur

Total 8,216 8,846

CURRENT ASSETS

NOTE NO. 8 : CASH AND CASH EQUIVALENTS(Amount in ` )


1 Income Tax Receivables (T.D.S) 28.311 - -

Total - -

NOTE NO. 9 : SHORT TERM LOANS AND ADVANCES(Amount in ` )


1 Amount Receivable from RRVUNL 28.940 1,42,135 1,69,835

Total 1,42,135 1,69,835

NOTE NO. 10 : OTHER CURRENT ASSETS(Amount in `)



215

1 Income on Govt. Securities (NSC Interest) 62.220 2,198 2,215

Total 2,198 2,215

NOTE NO. 11 : OTHER INCOME(Amount in ` )

S. Particulars Account For the year ended For the year endedNo. Code 31st March, 2016 31st March, 2015

1 Other Bank Charges 78.883 630 618

Total 630 618

NOTE NO. 12 : FINANCE COSTS(Amount in ` )


1 Legal Expenses 76.121 10,600 -

2 Audit Fees 76.122 17,250 16,854

3 Consultancy Expenses 76.123 4,025 3,933

Total 31,875 20,787

NOTE NO. 13 : ADMINISTRATIVE AND OTHER EXPENSES(Amount in ` )


a) For Audit fees to Statutory Auditors 17,250 16,854

13.1 Details of remuneration to Auditors :

S. Particulars Current Year Previous YearNo.

(Amount in ` )


216

Income relating to Previous year:-

1 Prior Period Income-Others 65.900 - -

Sub Total - -

Prior Period Expenses/Loss:-

1 Prior Period Expenses- Admn. Expenses 83.820 246 -

Sub Total 246 -

Total (246) -

NOTE NO. 14 : PRIOR PERIOD ITEMS(Amount in ` )


1 Net Profit after tax as per Statement of ` (30,553) (19,190)Profit and Loss attributable to EquityShareholders (a)

2 Weighted Average numbers of equity No. 50,000 50,000shares used as denominator forcalculating EPS (b)


Face Value per Equity Share ` 10 10

NOTE NO. 15 : EARNINGS PER EQUITY SHARE (EPS) AND DILUTED EPS(Amount in `)

S. Particulars Unit For the year ended For the year endedNo. 31st March, 2016 31st March, 2015


217

NOTE NO. 16 :OTHER DISCLOSURES AND NOTES ON FINANCIAL STATEMENTS

16.1 The company is a wholly owned subsidiary of M/s Rajasthan Rajya Vidyut Utpadan Nigam Limited andthe same was incorporated on 22.11.2006 under the Companies Act, 1956, pursuant to a decision takenby the Board of Directors of RVUN, in its 111th meeting held on 7.10.2006, for taking up the ongoinggreenfield power project being setup by RVUN namely Chhabra Coal based Thermal Power Projectstage-I (2x250 MW).

16.2 No business was transacted by the company during the year.

16.3 As no any business was transacted during the year, so provision for deferred tax assets / deferred taxliability pursuant to AS-22 "Accounting for Taxes on Income" has not been made by the company.

16.4 The company has no contingent liability as on 31.03.2016.

16.5 There is no estimated liability in respect of capital contract / commitment to be executed.

16.6 No employee of the Company whether employed for whole or part of the year was in receipt ofremuneration amounting to ` 300000/- or more per annum or ` 25000/- per month or more.

16.7 a) No expenditure in foreign currency was incurred during the year.

b) No earning in foreign exchange was accrued during the year.

16.8 The figures in the bracket represent previous year figures.

16.9 The figures of the current year & previous year have been rounded off to nearest rupee wherever considerednecessary.

16.10 The figures of the previous year have been reclassified, regrouped and rearranged, wherever considerednecessary, to make them comparable with the current year's figure to comply with the requirement ofSchedule III.








218

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDERSECTION 143(6)(B) OF THE COMPANIES ACT, 2013 ON THE ACCOUNTS OF

CHHABRA POWER LIMITED FOR THE YEAR ENDED 31st MARCH 2016.

The preparation of financial statements of Chhabra Power Limited for the year ended 31st March, 2016in accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is theresponsibility of the management of the company. The Statutory Auditors appointed by the Comptroller andAuditor General of India under Section 139(5) of the Act are responsible for expressing opinion on the financialstatements under section 143 of the Act based on independent audit in accordance with the standards on auditingprescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Reportdated 05.07.2016.

I, on behalf of the Comptroller and Auditor General of India, have decided not to conduct thesupplementary audit of the financial statements of Chhabra Power Limited for the year ended 31 March 2016under Section 143(6)(b) of the Act.

For and on behalf of the Comptrollerand Auditor General of India


(Economic & Revenue Sector Audit)Place : JAIPUR Rajasthan, JaipurDate : 03.08.2016

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

10th ANNUAL REPORT

2015-2016

BOARD OF DIRECTORS(As on AGM)1. Sh. U.D. Khan - Director

(DIN-07210365)2. Sh. S S Meena - Director

(DIN-03319346)3. Sh. M.K. Agarwal - Director

(DIN-07316044)4. Sh. S.K. Paliwal - Managing

(DIN-07584515) Director

AUDITORSS. R. SURANA & CO.Chartered AccountantsC-119, Mangal Marg,Bapu Nagar, Jaipur - 302015Phone : (O) 4029477 / 2700879



www.rvunl.com

Contents


1. Director's Report 221-230



4. Supplementry Audit Report 246

ANNUAL REPORT 2015-16 DHOLPUR GAS POWER LIMITED

221

DIRECTOR’S REPORT

To the Members,

Your Directors are pleased to present the 10th Annual Report on the business and affairs of the Companytogether with the Audited statement of Accounts for the financial year ended 31st March, 2016.

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 incurredloss of Rs. 30,686/- in the financial year 2015-16 against the loss of 19,117/- in the previous year2014-15.

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 theyear.

4. Share Capital

The Authorized Share Capital of the Company remains Rs.1 Crore divided into 10,00,000 Equity Sharesof Rs.10/- each. The paid-up Share Capital of the Company is 50,000 fully paid-up Equity Shares ofRs.10/- each aggregating to Rs.5,00,000/- held by the holding company, Rajasthan Rajya Vidyut UtpadanNigam, 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 hasbeen 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 andcommitments affecting the financial position of the Company between the end of the financial year andthe 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 thegoing 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.

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 UD Khan, Shri S.S Meena and Shri M.K Agrawal have beenappointed as Directors of the Company.

During the period under review, Shri Sanjay Malhotra, IAS, Shri P C Jain and Shri Ashutosh KumarJoshi ceased to be Directors of the Company.

Besides, Shri Vijay Kumar Golani has assumed charge as Ex-officio Managing Director of the Companyw.e.f. 10.12.2015 in place of Shri Radhey Shyam Mittal.


222

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 2015-16. There are no comments/observations made by the Statutory Auditors on the accounts of the Company for the financial yearended 31.3.2016. The report/ comments of the Comptroller & Auditor General of India will be circulatedseparately.

12. Deposits

The Company has not accepted or renewed any amount falling within the purview of provisions ofSection 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 forfurnishing 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 Section92 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

Since no commercial activity has undertaken by the Company, no initiatives have been taken by theCompany towards corporate social responsibility.

16. Board Meetings

During the financial year 2015-16, four meetings of the Board of Directors of the Company were held asdetailed below:

S.No. Number and date of Directors Attended the Directors absentMeeting Meeting from Meeting

1. 35th Board Meeting held on Shri N M Mathur, Chairman Shri R S Mittal,06.05.2015 Shri Sanjay Malhotra, IAS Managing Director

Shri P C JainShri Ashutosh Kr. Joshi

2. 36th Board Meeting held on Shri N M Mathur, Chairman Shri U D Khan, Director12.08.2015 Shri P C Jain

Shri Ashutosh Kr. JoshiShri R S Mittal,Managing Director

3. 37th Board Meeting held on Shri N M Mathur, Chairman None21.09.2015 Shri U D Khan

Shri Ashutosh Kr. JoshiShri S S MeenaShri R S Mittal,Managing Director

4. 38th Board Meeting held on Shri N M Mathur, Chairman Shri Ashutosh Kr. Joshi23.11.2015 Shri U D Khan Sh. M K Agarwal

Shri S S MeenaShri R S Mittal,Managing Director


223

5 39th Board Meeting held on Shri N M Mathur, Chairman Shri U D Khan, Director09.03.2016 Shri Ashutosh Kr. Joshi

Shri S S MeenaShri M K AgarwalShri V K Golani,Managing Director


Pursuant to Section 134 (5) of the Companies Act, 2013, the Directors to the best of their knowledge andbelief confirm that:






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 areno 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 andimplementation of a risk management policy for the Company including identification therein of elementsof 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 Government ofRajasthan, especially the Departments of Energy, Finance, etc. apart from the holding company, RajasthanRajya Vidyut Utpadan Nigam Ltd.


(Narendra Mal Mathur)Date : 20.07.2016 DIN-03033375Place : Jaipur Chairman


224

Annexure-I


As on the financial year ended on 31st March 2016

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of theCompanies (Management and Administration) Rules, 2014]


1. CIN U40109RJ2006SGC023352

2. Registration Date 22nd November, 2006

3. Name of the Company Dholpur Gas Power Limited






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 the % to total turnover ofNo. products/ services Product/ service the company

1. Generation of Electricity 35102 No commercial activity hasbeen carried out during thefinancial year



Associate held

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


225

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


CATEGORY OF No. of Shares held at the No. of Shares held at the end of % changeSHAREHOLDER beginning of the year the year during

the year


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 NILCorporate

(e) Financial - - - - - - - - -Institutions/Banks

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

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

(2) FOREIGN

(a) Individuals - - - - - - - - -(NRIs/ForeignIndividuals)

(b) Bodies - - - - - - - - -Corporate

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

(d) QualifiedForeign Investor - - - - - - - - -

(e) Others - - - - - - - - -

Sub-Total - - - - - - - - -A(2) :

Total A=A(1) NIL 50,000 50,000 100 NIL 50,000 50,000 100 NIL+A(2)

(B) PUBLICSHAREHOLDING

(1) INSTITUTIONS

(a) Mutual Funds/ - - - - - - - - -UTI

(b) Financial - - - - - - - - -Institutions/Banks

(c) CentralGovernment - - - - - - - - -

(d) StateGovernment - - - - - - - - -

(e) Venture Capital - - - - - - - - -Funds

(f) Insurance - - - - - - - - -Companies


226

(g) Foreign - - - - - - - - -InstitutionalInvestors

(h) Foreign VentureCapital Investors - - - - - - - - -

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

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


(a) Bodies - - - - - - - - -Corporate

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

(i) Individuals - - - - - - - - -holding nominalshare capitalupto Rs.1 lakh

(ii) Individuals - - - - - - - - -holding nominalshare capital inexcess of Rs.1lakh

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

CLEARING - - - - - - - - -MEMBERS

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

(d) Qualified Foreign - - - - - - - - -Investor

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

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

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

(C) Shares held by - - - - - - - - -custodians,against GDRsADRs

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


Sr. Shareholder's Name Shareholding at the Shareholding at theNo. beginning of the year end of the year

No. of % of total % of Shares No. of % of total % of Shares % changeShares Shares of Pledged/ Shares Shares of Pledged/ in share

the encumbered the encumbered holdingcompany to total company to total during

shares shares the year

1 Rajasthan Rajya Vidyut 50,000 100 NIL 50,000 100 NIL NILUtpadan Nigam Limited

Total 50,000 100 NIL 50,000 100 NIL NIL


227


1. Government of Rajasthan Shareholding at the beginning Cumulative Shareholding duringof the year the year

No. of shares % of total No. of shares % of totalshares of the shares of the

company company

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

Date wise Increase / Decrease inPromoters Share Holding duringthe year specifying the reasons NILfor increase/Decrease(e.g. allotment / Transfer / Bonus/Sweat equity etc.)

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


S. Shareholding at the beginning Cumulative Shareholding duringNo. of the year the year

For each of the Top 10 No. of Shares % of total No. of Shares % of totalShareholders shares of the shares of the

company company


Date wise Increase / Decrease inPromoters Share Holding duringthe year specifying the reasons for NILincrease/Decrease (e.g. allotment /Transfer / Bonus/ Sweat equity etc.)

At the end of the year (or on thedate of separation, if separatedduring the year)


S. Shareholding of each director Shareholding at the beginning Cumulative Shareholding duringNo. and each Key Managerial of the year the year

Personnel

No. of Shares % of total No. of Shares % of totalshares of the shares of the

company company


Date wise Increase / Decrease in - - - -Promoters Share Holding duringthe year specifying the reasonsfor increase/Decrease(e.g. allotment / Transfer/Bonus/Sweat equity etc.)



228

5. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment







Change in Indebtednessduring the financial year

Addition Reduction -- -- -- --

Net Change -- -- -- --

Indebtedness at the end ofthe year





6. Remuneration of Directors and Key Managerial Personnel :

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

S. Particulars of Remuneration Name of MD/WTD/Manager TotalNo. Amount

1. Gross Salary - -

(a) Salary as per provisions contained - - - -in section 17(1) of the Income TaxAct

(b) Value of perquisites u/s 17(2) - - - -Income Tax Act, 1961

(c) Profits in lieu of salary under - - - -Section 17(3) IncomeTax Act, 1961

2. Stock Option - - - -

3. Sweat Equity - - - -

4. Commission - - - -- As % of profit- Others, specify

5. Others, please specify - - - -

Total (A) - - - -

Ceiling as per the Act -


229

(B) Remuneration to Other Directors: NIL

S. Particulars of Remuneration Name of Directors TotalNo Amount





Total (1) - - - -





Total (2) - - - -

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




S. Particulars of Remuneration Name of Key Managerial Total AmountNo. Personnel

1. Gross Salary NIL NIL

(a) Salary as per provisions containedin section 17(1) of the IncomeTax Act NIL NIL

(b) Value of perquisites u/s 17(2)Income Tax Act, 1961 NIL NIL

(c) Profits in lieu of salary underSection 17(3) Income TaxAct, 1961 NIL NIL

2. Stock Option NIL NIL

3. Sweat Equity NIL

4. Commission- As % of profit- Others (Variable Pay) NIL NIL

5. Others, please specify NIL NIL

Total (A) NIL NIL


230


Type Section Brief Details of Authority Appealof the Description Penalty / [RD / NCLT made,

Companies Punishment/ / COURT] if anyAct Compounding (give Details)

fees imposed

A. COMPANY

Penalty - - - - -



B. DIRECTORS

Penalty - - - - -




Penalty - - - - -



For Dholpur Gas Power Limited

(Narendra Mal Mathur)Place : Jaipur DIN-03033375Date : 20.07.2016 Chairman


231

S. R. Surana & Co. C-119, MANGAL MARGChartered Accountants BAPU NAGAR

JAIPUR - 302015Phone : (O) 4029477 / 2700879

INDEPENDENT AUDITOR’S REPORT

TOTHE MEMBERS OFDHOLPUR GAS POWER LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of DHOLPUR GAS POWER LIMITED ("thecompany"),which comprise the Balance Sheet as at 31st March 2016, the Statement of Profit and Loss, theCash Flow Statement for the year then ended, and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act,2013 ("the Act") with respect to the preparation and presentation of these financial statements that give a true andfair view of the financial position, financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India, including the Accounting Standards specified under Section133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes themaintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and other irregularities; selection and applicationof 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 ensuringthe accuracy and completeness of the accounting records, relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from material misstatement, whether due to fraudor error.


Our responsibility is to express an opinion on these financial statements based on our audit. We have taken intoaccount the provisions of the Act, the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal financial control relevant to the Company's preparation of the financialstatements 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 internalfinancial controls system over financial reporting and operating effectiveness of such controls . An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the financial statements.


232

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaidfinancial statements give the information required by the Act in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of the state of affairs of the Companyas at 31st March2016, its loss and its cash flows 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 whereverthe 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 CentralGovernment 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, to the extent applicable.

3. As required by Companies Act, 2013 under Section 143(5), we give in the ANNEXURE-B, a statementon the matter directed by the C&AG.


a) We have sought and obtained all the information and explanations which to the best of ourknowledge 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 sofar as it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with bythis Report are in agreement with the books of account.

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specifiedunder Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of written representations received from the directors as on 31st March, 2016, takenon record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016,from being appointed as a director in terms of Section 164(2) of the Act.

f) 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 inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which required to be transferred by the Company to the InvestorEducation and Protection Fund.

For S. R. Surana & Co.Chartered Accoutants

FRN : 000990C

(Anil Agarwal)Place : Jaipur PartnerDate : 05.07.2016 M.No. 073285


233

Annexure A to the Auditors' Report

[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements' of ourReport of even date to the members of DHOLPUR GAS POWER LIMITED on the accounts of

the company for the year ended 31st March, 2016]

On the basis of such checks as we considered appropriate and according to the information and Explanationsgiven 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 notapplicable.

(ii) The Company does not have made any purchases and have not any Inventory hence reporting underclause (ii) of the Order is not applicable.

(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited LiabilityPartnerships or other parties covered in the Register maintained under Section 189 of the CompaniesAct, 2013.

(iv) The company have not granted any loans and made investments and providing guarantees and securitieshence 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 depositduring the year and accordingly the question of complying with Sections 73 and 76 of the CompaniesAct, 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 including ProvidentFund, Employees'State Insurance, Income-tax, Sales tax, Service Tax, Customs Duty, ExciseDuty, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriateauthorities.

(b) There is no dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, and ValueAdded Tax which have not been deposited as on 31st March, 2016.

(viii) In our opinion and according to the information and explanations given to us, the Company has notdefaulted in the repayment of loans or borrowings to financial institutions, banks and government anddues to debenture holders.

(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debtinstruments) or term loans and hence reporting under clause (ix) of the Order is not applicable.


JAIPUR - 302015Phone : (O) 4029477 / 2700879


234

(x) To the best of our knowledge and according to the information and explanations given to us, no fraud bythe Company and no material fraud on the Company by its officers or employees has been noticed orreported 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.

(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 compliancewith Sections 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with therelated parties and the details of related party transactions have been disclosed in the financial statementsetc. as required by the applicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures and hence reporting under clause (xiv) of the Order is not applicableto the Company.

(xv) In our opinion and according to the information and explanations given to us, during the year theCompany 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 ofthe 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.


FRN : 000990C



235

ANNEXURE-B

Referred in our report of even date of DHOLPUR GAS POWER LIMITEDon the financial statements for the year ended March 31, 2016.

S.No. Directions Impact

1. If the company has been selected for disinvestment a Not Applicable, since company has not beencomplete status report in terms of valuation of assets selected for disinvestment(Including intangible assets and land) and liabilities(including committed and General Reserves) may beexamined, including the mode and present stage ofdisinvestment process.

2. To report whether there are any cases of waiver/write It was informed to us that there is no case ofoff to debts/loans/interest etc. If yes, the reasons waiver/write off of debts/loans/interest etc.thereof and the amount involved

3. Whether proper records are maintained for inventories Not Applicable. Being company has neitherlying with third parties and assets received as gift from received any asset as gift from Government/government or other authorities. other authorities nor there has been any

inventories lying with third parties.

4. A report on age-wise analysis of pending legal/ It is informed to us that there is no pendingarbitration cases including the reasons of pendency cases for legal/arbitration.and existence/ effectiveness of a monitoringmechanism for expenditure on all legal cases (foreignand local) may be given.


FRN : 000990C



JAIPUR - 302015Phone : (O) 4029477 / 2700879


236

I. EQUITY AND LIABILITIES

(1) Shareholders’ Funds

(a) Share Capital 2 5,00,000 5,00,000

(b) Reserves & Surplus 3 (3,23,960) (2,93,274)

(2) Current Liabilities

(a) Other Current Liabilities 4 29,141 24,720

(b) Short-term Provisions 5 - -

TOTAL 2,05,181 2,31,446

II. ASSETS

(1) Non-current Assets

(a) Long Term Loans and Advances 6 53,687 51,622

(b) Other Non-Current Assets 7 - -

(2) Current Assets

(a) Cash and Cash Equivalents 8 9,780 10,410

(b) Short Term Loans and Advances 9 - -

(c) Other Current Assets 10 1,41,714 1,69,414

TOTAL 2,05,181 2,31,446




(N.M. MATHUR) For S.R. Surana & Co.DIN-03033375 Chartered Accountants

Chairman FRN :000990C

(V K GOLANI) (ANIL AGARWAL)DIN-07365259 Partner

Managing Director M.No. 073285


BALANCE SHEET AS AT 31st MARCH, 2016CIN-U40109RJ2006SGC023352

(Amount in ` )

S. Particulars Note As at As atNo. No. 31st March, 2016 31st March, 2015


237

I. Revenue:

(1) Other Income 11 2,065 2,288

TOTAL 2,065 2,288

II. Expenses:

(1) Finance Costs 12 630 618

(2) Administrative and Other Expenses 13 31,875 20,787

Total Expenses 32,505 21,405

Profit before Prior Period Items and Taxes (30,440) (19,117)

Prior Period Expenses 14 (246) -

Profit beforeTaxes (30,686) (19,117)

Tax Expenses:

Current Tax - -

Income Tax (Earlier Year Tax) - -

Deferred Tax - -

PROFIT FOR THE YEAR (30,686) (19,117)

Earnings Per Equity share of ParValue of Rs.10/- Each 15

(1) Basic & Diluted (0.61) (0.38)



STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2016CIN-U40109RJ2006SGC023352

(Amount in ` )

S. Particulars Note For the year ended For the year endedNo. No. 31st March, 2016 31st March, 2015








238

CASH FLOW STATEMENT 2015-16CIN-U40109RJ2006SGC023352

Inflow (Outflow)(Amount in ` )


Net Profit before taxation (30,686) (19,117)

Adjustments

Add:- Depreciation 0 0

Adjusted profit for the year (30,686) (19,117)

(A) Cash Flow from Operating Activities

1 Other Current Assets 27,700 11,748

2 Non-Current Assets (2,065) 2,818

3 Current Liabilities and Provision 4,421 3,933

4 Misc. Expenditure/ to the extent not written off / adjusted - -

Net Cash Flow from Operating Activities (630) (618)

(B) Cash Flow from Investing Activities

Cash used in Investing Activities 0 0

(C) Cash Flow from Financial Activities

Net Cash surplus from Financing Activities 0 0

(D) Net increase (Decrease) in Cash & (630) (618)Cash Equivalent (A+B+C)

(E) Opening Cash & Cash Equivalent 10,410 11,028

(F) Closing Cash & Cash Equivalent 9,780 10,410








239

NOTE No. 1:- SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of Accounting :

a) The Financial Statements of the Company have been prepared under historical cost conventionand in accordance with generally applicable accounting standards issued by the Institute ofChartered Accountants of India, the provisions of Companies Act, 2013, the applicable provisionsof Electricity Act, 2003 and generally accepted accounting principles as adopted consistently bythe Company.

b) The Company generally follows Mercantile System of Accounting and recognizes significantitems of income and expenditure on accrual basis.

1.2 General :

a) Except wherever stated Accounting Policies are consistent with the generally accepted accountingprinciples and have been applied.

b) No business was transacted during the year. Only General Administrative expenses and Incomeshave been charged to the Statement of Profit & Loss.


240

1 Authorised

10,00,000 Equity shares of ` 10/- each 1,00,00,000 1,00,00,000

2 Issued,Subscribed & Paid Up

50,000 Equity shares of ` 10/- each 54.600 5,00,000 5,00,000fully paid up (50,000)

5,00,000 5,00,000

NOTES ON FINANCIAL STATEMENTS

SHAREHOLDERS’ FUNDSNOTE NO. 2 : SHARE CAPITAL

(Amount in ` )


*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 10. Each holder ofequity 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 theremaining 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

S. Particulars As at As atNo. 31st March, 2016 31st March, 2015

(i) Reconciliation of the number of shares outstanding

No. of Shares held No. of Shares held1 Rajasthan Rajya Vidyut Utpadan Nigam Limited

& its Nominees (Holding Company) 50,000 50,000

% of Holding 100.00% 100.00%

S. Name of Shareholder As at As atNo. 31st March, 2016 31st March, 2015

(ii) Details of Shares in the company held by each shareholder holding more than 5percent shares


241

1 Opening Balance 58.210 (2,93,274) (2,74,157)

2 Add:- Net Profit after tax transferred (30,686) (19,117)from Statement of Profit & Loss

Closing Balance (3,23,960) (2,93,274)

NOTE NO. 3 : RESERVES & SURPLUS(Amount in ` )


1 Expenses Payable 46.430 29,141 24,720

Total 29,141 24,720

CURRENT LIABILITIES

NOTE NO. 4 : OTHER CURRENT LIABILITIES

(Amount in ` )


1 Provision for Income Tax 46.800 - -

Total - -

NOTE NO. 5 : SHORT TERM PROVISIONS

(Amount in ` )


1 Security Deposit with C.T.O.(NSC) 28.915 31,000 31,000

2 Income Accured but not due 28.310 22,687 20,622(NSC Interest)

Total 53,687 51,622

NON-CURRENT ASSETS

NOTE NO. 6 :- LONG TERM LOANS AND ADVANCES

(Amount in ` )



242

1 Miscellaneous Expenditure to theextent not written off 17.225 to 18.100 - -

[see Descriptive Note (i)]

Total - -

NOTE NO. 7 : OTHER NON- CURRENT ASSETS

(Amount in ` )


1 Balance with Bank in Current 24.401 9,780 10,410Account with SBBJ, Jaipur

Total 9,780 10,410

CURRENT ASSETS

NOTE NO. 8 : CASH AND CASH EQUIVALENTS(Amount in ` )


1 Income Tax Receivables (T.D.S) 28.311 - -

Total - -

NOTE NO. 9 : SHORT TERM LOANS AND ADVANCES

(Amount in ` )


1 Amount Receivable from RRVUNL 28.940 1,41,714 1,69,414

Total 1,41,714 1,69,414

NOTE NO. 10 : OTHER CURRENT ASSETS

(Amount in ` )



243

1 Income on Govt. Securities 62.220 2,065 2,288(NSC Interest)

Total 2,065 2,288

NOTE NO. 11 : OTHER INCOME

(Amount in ` )

S. Particulars Account For the Year Ended For the Year EndedNo. Code 31st March, 2016 31st March, 2015

1 Other Bank Charges 78.883 630 618

Total 630 618

NOTE NO. 12 : FINANCE COSTS

(Amount in ` )


1 Legal Expenses 76.121 10,600 -

2 Audit Fees 76.122 17,250 16,854

3 Consultancy Expenses 76.123 4,025 3,933

Total 31,875 20,787

NOTE NO. 13 : ADMINISTRATIVE AND OTHER EXPENSES

(Amount in ` )


a) For Audit fees to Statutory Auditors 17,250 16,854

S. Particulars Current PreviousNo. Year Year

13.1 :- Details of Remuneration to Auditors :- (Amount in ` )


244

Income relating to Previous year:-

1 Prior Period Income-Others 65.900 - -

Sub Total - -

Prior Period Expenses/Loss:-

1 Prior Period Expenses- Admn. Expenses 83.820 246 -

Sub Total 246 -

Total (246) -

NOTE NO. 14 : PRIOR PERIOD ITEMS(Amount in ` )


1 Net Profit after tax as per Statement of ` (30,686) (19,117)Profit and Loss attributable to EquityShareholders (a)

2 Weighted Average numbers of equity No. 50,000 50,000shares used as denominator forcalculating EPS (b)


Face Value per Equity Share ` 10 10

NOTE NO. 15 : EARNINGS PER EQUITY SHARE (EPS) AND DILUTED EPS

S. Particulars Unit For the year ended For the year endedNo. 31st March, 2016 31st March, 2015


245

NOTE No. 16 : OTHER DISCLOSURES ANDNOTES ON FINANCIAL STATEMENTS

16.1 The company is a wholly owned subsidiary of M/s Rajasthan Rajya Vidyut Utpadan Nigam Limited andthe same was incorporated on 22.11.2006 under the Companies Act, 1956, pursuant to a decision takenby the Board of Directors of RVUN, in its 111th meeting held on 7.10.2006, for taking up the ongoinggreenfield power project being setup by RVUN namely Dholpur (Purani Chawni) Gas based PowerProject (330 MW).

16.2 No business was transacted by the company during the year.

16.3 As no any business was transacted during the year, so provision for deferred tax assets / deferred taxliability pursuant to AS-22 "Accounting for Taxes on Income" has not been made by the company.

16.4 The company has no contingent liability as on 31.03.2016.

16.5 There is no estimated liability in respect of capital contract / commitment to be executed.

16.6 No employee of the Company whether employed for whole or part of the year was in receipt ofremuneration amounting to ` 3,00,000/- or more per annum or ` 25,000/- per month or more.

16.7 a) No expenditure in foreign currency was incurred during the year.

b) No earning in foreign exchange was accrued during the year.

16.8 The figures in the bracket represent previous year figures.

16.9 The figures of the current year & previous year have been rounded off to nearest rupee wherever considerednecessary.

16.10 The figures of the previous year have been reclassified, regrouped and rearranged, wherever considerednecessary, to make them comparable with the current year's figure to comply with the requirement ofSchedule III.








246

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDERSECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL

STATEMENTS OF DHOLPUR GAS POWER LIMITEDFOR THE YEAR ENDED 31st MARCH 2016.

The preparation of financial statements of Dholpur Gas Power Limited for the year ended 31st March,2016 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 is theresponsibility of the management of the company. The Statutory Auditors appointed by the Comptroller andAuditor General of India under Section 139(5) of the Act are responsible for expressing opinion on the financialstatements under section 143 of the Act based on independent audit in accordance with the standards on auditingprescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Reportdated 05 July, 2016

I, on behalf of the Comptroller and Auditor General of India, have decided not to conduct thesupplementary audit of the financial statements of Dholpur Gas Power Limited for the year ended 31 March 2016under Section 143(6)(b) of the Act.

For and on behalf ofthe Comptroller and Auditor General of India


Place : JAIPUR (Economic & Revenue Sector Audit)Date : 03.08.2016 Rajasthan, Jaipur

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

10th ANNUAL REPORT

2015-2016

BOARD OF DIRECTORS(As on AGM)1. Sh. Nageen Kumar Kothari - Chairman

(DIN-07649438)2. Sh. Murari Lal Gupta - Director

(DIN-07580613)3. Sh. Shyam Swaroop Meena- Director

(DIN-03319346)4. Sh. Prahalad Sahai Arya - Director

(DIN-07646220)5. Sh. Gopal Lal Jasoria - Director

(DIN-07686384)6. Sh. Rakesh Verma - Managing

(DIN-07400105) Director7. Smt. Pushpa Upadhyay - Director

(DIN-07259148)

CHIEF FINANCIAL OFFICERSh. S.K. Sethi

COMAPNY SECRETARYSh. Hitesh Sharma(ACS-25147)

STATUROTY AUDITORSM/S G.N. GUPTA & CO.Chartered Accountants27 A, Shri Ram ColonyOpp. Khaitan HospitalSikar Road, Jaipur-302023Ph. No. 0141-2232008,9829332889Email: [email protected]



www.rvunl.com

Contents


1. Board's Report 249-268



4. Supplementry Audit Report & 306Management's Response toCAG's Comments

ANNUAL REPORT 2015-16 GIRAL LIGNITE POWER LIMITED

249

BOARDS' REPORT

To the Members,

Your Directors are pleased to present the 10th Annual Report on the business and affairs of the Companytogether with the Audited Financial Statements for the financial year ended 31st March, 2016.

1. Financial Results

The summarised financial results of the Company for the year ended 31.3.2016 are given below:

(` in Crores)

Particulars Current Year Previous Year2015-16 2014-15

Revenue from Sale of Power* 90.43 27.62

Revenue Subsidies & Grants and other Income 0.29 1.04

Total Income 90.72 28.66

Cost of Generation of Power* 47.16 16.20

Other Expenditure* 24.19 18.93

Profit/(Loss) before depreciation, interest and tax 19.37 (6.47)

Less: i) Depreciation 86.82 37.72

ii) Interest, finance charge and lease rentals* 99.94 28.55

Profit/ (Loss) for the period (Profit before tax) (167.39) (72.74)

Less: Provision for Tax (Fringe Benefit Tax) -- --

Profit/ (Loss) after tax (167.39) (72.74)

Add/Less: Prior period credits/ expenses 4.68 29.85

Profit before extraordinary items and tax (162.71) (42.89)

Add: Rate Regulatory Income 24.33 --

Transferred to Reserve & Surplus head (138.38) (42.89)

*The figures are net of the amount capitalized during the year.

2. Transfer to Reserves & Dividend

No profits being available for appropriation, the Board is unable to recommend payment of dividendfor the year nor is proposing to carry any amount to reserves.

3. Highlights

The 125 MW Unit-1 of GLPL was first commissioned on trial basis on 28.02.2007. It is the first lignitebased power plant of the Rajasthan and first power plant of the world in operation using lignite havingsulphur content in the range of 6%. As the technology for using the lignite having sulphur content 6%for power generation is not yet fully proven, matured & optimized for smooth and efficient operation, itcontinues to face many design problem in main equipment and other equipments/ systems, such aschoking of back pass with deposits of fly ash, Lignite chain feeders failure, ash evacuation problem dueto clinker/ big pieces of ash coming out from economizer hoppers & the unit is still to achieve full loadoperation & run on sustained basis keeping SOx level within the permissible limits.

Pursuant to the decision of the Board of Directors of RVUN (holding company of GLPL) in its 241stmeeting held on 20.10.2014, 1x125 MW Unit-2 (Stage-II) of Giral Lignite Thermal Power Stationsituated at Giral in District Barmer, Rajasthan has been transferred to the Company on a 'going concern


250

basis' alongwith all its assets & liabilities on book value, at a consideration Rs.185 Crores in the form ofEquity Shares to be issued by GLPL to RVUN towards the State Government's Equity contribution forsetting up the aforesaid Unit-2 of Giral LTPP with effect from 1st April, 2015, which was the 'EffectiveDate of Transfer'.

The Gross Generation of the Power Station was 254.03 MU in year 2015-16 as against 357.06 MU inthe year 2014-15. The PLF was 11.57% in 2015-16 which was 16.30% during 2014-15. AuxiliaryPower Consumption has been increased to 22.00% during 2015-16 against 21.70% in the year2014-15.

Unit-1 of GLTPS has been under major breakdown since 10.7.2014 due to falling of vortex finder incyclone. Economizer tubes are badly damaged and Eco bank Coils requires replacement. ESP, TubularAPH tubes and flue gas duct condition is also quite worse. Major work of refractory is under progressduring this breakdown.

Considering operational problems and heavy financial losses being incurred by both Units of GiralLignite Thermal Power Station, the Board of Directors of RVUN decided for disinvestment of totalassets of both the Units 1 & 2 of Giral LTPS, by way of Strategic Sale of RVUN's equity shareholding inGiral Lignite Power Limited. The matter was submitted to the State Government for according Cabinetapproval 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 Valuation LLP as Asset Valuer and M/s P H Bathiya & Associates, Mumbai, as Legal Advisor.The transaction is targeted to be completed by April, 2017.

4. Fuel & Technology

The fuel for the plant is mined lignite available from mines adjacent to the plant & limestone requirementof the plant are being met from the mines at Sanu village in district Jaisalmer. The water requirement ofthe plant area being met from the IGNP by laying 165 Kms of pipe line from Mohangarh. The sulphurcontent in the lignite is in the range of 6% and the technology used for power generation is CFBC.

5. Share Capital

During the period under review, the members in their Extraordinary General Meeting held on 22.05.2015increased Authorised Share Capital of the Company from Rs.200 crores to Rs.375 crores divided into37,50,00,000 Equity Shares of Rs.10/- each.

During the financial year 2015-16, an allotment of equity shares of Rs. 185,00,00,000/- has been madeto the Rajasthan Vidyut Utpadan Nigam Limited, holding company of GLPL, in respect of the transferof 1x125 MW Unit-2 Stage-II of Giral Lignite Thermal Power Station (GLTPS).

The present paid-up share capital of the Company is Rs.370,05,00,000/-.

6. Directors, Key Managerial Personnel & Committees

Shri Nageen Kumar Kothari (DIN-07649438), CMD, RVUN has been appointed Ex-officio Chairmanof the Board of Directors of the Company (GLPL).

Shri N M Mathur (DIN-03033375) relinquished charge as Chairman & Managing Director of RVUN(holding company of GLPL) on 10.09.2016 and accordingly Sh. Mathur also ceased to be Director andalso Chairman of the Board of Directors of the Company (GLPL) consequent upon his cessation inRVUN.

During the period under review, Shri S.S. Meena (DIN-03319346), Dr. M L Gupta (DIN - 07580613),Shri P S Arya (DIN-07646220), Shri U D Khan (DIN-07210365) and Smt. Pushpa Upadhyay (DIN-07259148) have been appointed as Directors of the Company. Shri Ashutosh Kumar Joshi (DIN-07080434), Shri Sanjay Malhotra, IAS (DIN-00992744), Shri P C Jain (DIN-03545146) and Shri M KAgarwal (DIN-07316044) were ceased to be Directors of the Company.


251

Besides, Shri Rakesh Verma (DIN-07400105) has been appointed as Ex-officio Managing Director ofthe Company in place of Shri Hemant Kumar Singhal (DIN-06848475).

Shri Hitesh Sharma has been appointed as Company Secretary of the Company and Shri S K Sethi hasbeen designated as Chief Financial Officer of the Company.

The present constitution of the Board is given below -

1. Shri N K Kothari Chairman

2. Dr. M L Gupta Director

3. Shri S S Meena Director

4. Shri P S Arya Director

5. Shri Rakesh Verma Managing Director

6. Smt. Pushpa Upadhyay Director

The Company has constituted an Audit Committee of the Board of Directors on 07.09.2016.

7. Auditors

7.1 Statutory Auditors

The Comptroller & Auditor General of India (CAG) appointed M/s G N Gupta & Co., CharteredAccountants, Jaipur as the Statutory Auditors of the Company, for the financial year 2015-16.

Statutory Auditors' Observations

The replies of the Management to the observations of the Statutory Auditors on the AnnualAccounts for the financial year ended 31.3.2016, are attached hereto as Annexure-I.

7.2 Secretarial Auditor

M/s Kushawah Kundwani & Associates, Company Secretaries, Jaipur, has been appointed asthe Secretarial Auditor of the Company for the financial year 2015-16. The Secretarial AuditReport for the financial year ended on 31st March, 2016 forms part of this report and isannexed as Annexure II along with replies of the Management to the observation(s) therein.

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 changesand commitments affecting the financial position of the Company between the end of thefinancial 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 whichimpact 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 duringthe year.


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f) Deposits

The Company has not accepted or renewed any amount falling within the purview of provisionsof Section 73 of the Companies Act 2013 ("the Act") read with the Companies (Acceptance ofDeposit) Rules, 2014 during the year under review. Hence, the details relating to deposits asalso requirement for furnishing of details of deposits which are not in compliance with ChapterV 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 underSection 92 of the Companies Act, 2013 is included in this Report as Annexure-III and formspart of this Report.

h) Particulars of Contracts or Arrangement with Related Parties

During the period under review, the Company had not entered into any transactions withrelated parties which could be considered material in terms of Section 188 of the CompaniesAct, 2013. Accordingly, the disclosure of related party transactions as required under Section134(3)(h) of the Companies Act, 2013 in Form AOC 2 is not applicable.

i) Conservation of Energy, Technology Absorption and Foreign Exchange Earningsand Outgo

i) The Company is making continuous efforts for conservation of energy by reducing theAuxiliary Consumption at its various Power Stations by installation of modern state ofthe art Power Plant equipment, by optimizing the same through timely maintenanceand various other methods to increase efficiency;

ii) As regards technology absorption and foreign exchange earnings & outgo, theinformation 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 theCompanies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

k) Risk Management

The Company is in the process of developing & implementing risk management plan.

l) Adequacy of Internal Control Systems

The Company has in place adequate internal control systems commensurate with the nature ofthe 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 constituteda 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) Board Meetings

During the financial year 2015-16, Seven (7) meetings of the Board of Directors of the Companywere held as detailed below:


253

S. Number and date of Meeting Board's Number ofNo. Strength Directors present



3. 41st Board Meeting held on 12.08.2015 6 6

4. 42nd Board Meeting held on 21.09.2015 6 4

5. 43rd Board Meeting held on 23.11.2015 7 4




Pursuant to Section 134 (5) of the Companies Act, 2013, the Directors to the best of their knowledgeand belief state that:


ii) such accounting policies have been selected and applied them consistently and such judgmentsand estimates have been made that are reasonable and prudent so as to give a true and fairview of the state of affairs of the Company as at end of financial year and of the profit of theCompany for that period;

iii) proper and sufficient care has been taken for the maintenance of adequate accounting recordsin accordance with the provisions of the Companies Act, 2013, for safeguarding the assets ofthe Company and for preventing and detecting fraud and other irregularities;



10. Acknowledgement

The Directors wish to place on record their appreciation of the support received from the Governmentof Rajasthan, especially the Departments of Energy, Finance, etc. apart from the holding company,Rajasthan Rajya Vidyut Utpadan Nigam Ltd.


Sd/-

Shri N K Kothari

DIN-07649438

Chairman

Date : 19.12.2016

Place : Jaipur


254

MANAGEMENT RESPONSE TO THE STATUTORY AUDITOR'S REPORT ONTHE ACCOUNTS OF GLPL FOR THE FINANCIAL YEAR 2015-16

Basis of qualified Opinion: The matters pointed out by the auditors are being replied while giving point wisereplies of the annexure-I&II of the Auditor's Report.

ANNEXURE-I OF THE AUDITORS REPORT

1. FIXED ASSETS AND DEPRECITAION:

A major portion of assets were shown as Capital work in progress as on 31.03.2010. Although the unitswere synchronized, trial operations were on to stabilize the units and ensure required parameters relatingto SOX / NOX etc. The units can be stated ready for commercial operation only after such stabilization.Pending readiness for commercial operations, the units were not taken over from M/s BHEL, theexpenditure incurred was being treated as capital work in progress and hence no depreciation wasprovisioned. The commercial operation of these units have been started w.e.f. 18.10.11 of Unit-1 and12.03.11 of Unit-2, as such capitalization of expenditure & depreciation thereon are being chargedfrom the date of COD i.e. 18.10.11 and 12.03.11 while finalizing annual accounts for the year 2011-12& onwards.

During this year an addition in Plant & Machinery of Rs.2,61,81,239/- has been made in the books ofaccounts after making adjustment of old verified invoices pertains to M/S BHEL (Unit-2) which werepending due to some clarifications. The all passed invoices were shown to statutory auditors. Thereforemanagement is not agreed with the comments of Auditors.

The additional cost as approved by the RERC has been shown as regulatory assets in the books ofaccounts for both the units in accordance with the "Guidance Note on Accounting of Rate regulatedActivities" issued by the ICAI and as already explained at accounting policy note No.9.

2. IMPAIREMENT OF ASSETS:

The management of the company does not agree with the view of the auditors regarding impairment ofassets. Continuous efforts are being made for arranging better quality of fuel so that the unit can beoperated according to norms consistently.

3. ACCOUNTING FOR NET CONSIDERATION FOR ASSETS TRANSFERRED BY RVUNL:

Equity Shares of Rs.185 Crore has been allotted to RRVUNL against Unit-I in F.Y.-2014-15. Theaccounting effect of allotment of shares has been given in the financial accounts of year 2014-15. Therest of amount of Rs.271.25 crore is shown as payable to RVUNL under the head "other current liabilities".

Equity Shares of Rs. 185 Crore has been allotted to RRVUNL against Unit-II in F.Y. 2015-16. Theaccounting effect of allotment of shares has been given in the financial accounts of the year 2015-16.The rest amount of Rs.341.11 crore is shown as payable to RVUNL under the head "other currentliabilities".

It is stated that regular transactions is being done with Holding Company i.e RVUNNL which alsoarrange funds for the requirements, therefore above amount of Rs. 271.25 crore and Rs.341.11 crorehas been shown in the head "Other current liabilities- Payable to RVUN" not to the Chargeable head"Loans".


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4. FORMAL AGREEMENT BETWEEN TWO COMPANIES FOR TRANSFER OF UNIT - I &UNIT-II OF RVUNL:

M/s GLPL is a wholly owned subsidiary of M/s RRVUNL and all transactions relating to Unit # 1 andUnit # 2 were transferred to M/s GLPL. The consideration has been worked out, based on the auditedbalance sheet of GLTPP Unit-I & Unit-II of RVUN for the year ended 31-12-2008 and 31.03.2015respectively. The exact position of purchase consideration as net of assets and liabilities as on 01.01.2009and 31.03.2015, the date of transfer of business of unit 1 and 2 of M/s GLTPP under RVUN into itssubsidiary M/s GLPL, has been shown in agreement and detail of assets and liabilities as on dated01.01.2009 and 31.03.2015 are available separately in records for further reference.

5. PRICING OF POWER:

The power sector companies in Rajasthan are governed by the Rajasthan Electricity RegulatoryCommission. As per the regulation, a unit is allowed to recover direct cost & indirect cost by raising billsto discom(s) through their commercial wing. Revised Provisional tariff fixation is being awarded by theRERC as per norms. Income is booked into books of accounts, based on the provisional rates allowedby RERC during the F.Y. 2015-16 and later on fuel price adjustment bills are being raised on revisedrates as allowed to us from time to time by RERC.

6. VALUATION OF INVENTORY:

Deviation regarding inventory valuation as per AS-2 of ICAI has already been

disclosed vide point no.4 of the Accounting Policies. Accordingly, the valuation of inventory hasbeen made on the basis of weighted average method.

7. ACTURIAL VALUATION OF PROVISION FOR RETIREMENT BENEFITS OF THEEMPLOYEES:

Deviation regarding employee benefits as per AS-15 of ICAI has already been disclosed vide pointno.6 of the Accounting Policies.

8. PRIOR PERIOD EXPENSES:

Above audit qualification has already been discussed & replied in the audit report of F.Y. 2014-15. It isagain clarified by the management that provision for liability for expenses amounting to Rs.25.29 croreand balance from net salary payable account Rs.76.40 lakh was transferred to prior period expenses A/C (By reversing these provisions) in the F.Y. 2014-15 because payments against above expenses hadbeen made in earlier years and now there is no meaning to stand these balances in the head of "Provisionsfor liabilities against expenses."

9. BALANCE UNDER SALES TAX ACCOUNTS:

Account has been reconciled and corrective entries have been made in F.Y.2015-16.

10. CONSTRUCTION STORE AND ADVANCES:

Efforts are going on to adjust the advance paid to the suppliers and contractors after getting verifiedinvoices from the concerned authorities duly reconciled with advances paid, generally advances areadjusted on completion of supplies/ contracts and such accounts are decreasing year by year.


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11. CURRENT LIABILITES AND CURRENT ASSETS:

a. Efforts are being made to get reconciled the balances appearing under the liabilities for supplyof Material.

b. Efforts are being made to get confirmed/reconciled the balances appearing under the liabilitiesfor supply of Material etc.

c. Balance under the head "Liabilities for employees" was appearing for amounting to Rs.76.40lacs, which was charged to "Prior Period expenses" during this financial year for proper correctionof balances after due reconciliation.

Balance under the head Provision for liabilities for expenses a/c of Rs. 25.29 crore has beentransferred to Prior period expenses, which was standing since 2009 till 2011. Now reversalhas been made to show the correct accounting position.

d. Liability on account of superannuation and gratuity fund is being discharged regularly as pernorms.

e. Efforts are being made to get confirmed/reconciled the balances appearing under the headLoans & Advances and Other Receivables.

f. All major purchases were made from large scale industries only, which are not covered byMSME Act, 2006. However, there were a few purchases from MSME's and their dues havebeen settled with due dates. However, till now we have not received any claim for interest onthe delayed payments from any MSME's.

g. Noted for implementation from current financial year 2016-17.

h. Noted. Efforts are being made for implementation.

12. CONSENT OF LENDERS FOR TRANSFER OF LOANS FROM RRVUNL TO COMPANY:

The matter has already been taken up with PFC, Oriental Bank of Commerce and Canara Bank regardingtransfer of loan from RVUNL to GLPL. Above matter is under process & will be completed shortly.

13. BORROWING POWERS OF COMPANY:

Borrowing powers under sec. 292 and 293 of companies' act 1956 is not a pre-requisite condition fortransfer of business/ unit from holding company to a subsidiary company. However the requirement ofincreasing the borrowing powers u/s 292 and 293 shall be made in the AGM as the case may be afterexecution of tri-party agreement among RVUN, GLPL and the lending institution which is under process.


257

REPLIES ON ANNEXURE -II OF THE AUDITORS' REPORT

1(a) Detailed Fixed Asset Registers are available with the company prepared / updated up to 2014-15 forGLPL. According to the format prescribed by RERC. As regards showing the full particulars includingquantitative details and situation of fixed assets, most of the assets appearing in the register contain theinformation as required under the Act.

Further, as per RERC Tariff Order dated 12.08.2015, Regulatory Assets has been made in the books ofaccounts for Rs.30.71 Crore in Unit-I and Rs.106.16 Crore in Unit-II in F.Y.2015-16. The additional costas approved by the RERC has been shown as regulatory assets in the books of accounts for both theunits in accordance with the "Guidance Note on Accounting of Rate regulated Activities" issued by theICAI and as already explained at accounting policy note No.9.

1. (b) Steps are being taken to strengthen the system of physical verification of Fixed Assets.

1. (c) All land title deeds were provided to the Statutory Auditors. Therefore management humbly disagreeswith the observation raised by Statutory Auditors.

2(a) Noted. Necessary steps shall be taken for physical verification of inventory in F.Y. 2016-17.

3. No comments.

4. No comments.

5. No comments.

6. Noted for implementation with effect from current financial year 2016-17.

7(a) The all statutory dues have been paid timely i.e. within stipulated date of payments.

7 (b). Factual, no comments.

8. No comments.

9. Factual. No comments.

10. Informative in nature, hence no comments.








258

REPLY'S ON OBSERVATION RAISED BY STATUTORY AUDITORS IN ANNEXURE "A":

a) Noted for implementation.

(B) Now the Internal audit for the F.Y. 2015-16 is under process and expected to complete shortly.

(c) Steps are being taken to strengthen the system of Physical verification of fixed assets.

(d) Repair and maintenance of unit-I after fire incident was made in the year 2014. All admissible claimshave been received through insurance agency. Whereas the matter of revival of Unit-I, it is intimatedthat State Government has started the disinvestment process of GLPL, hence no further step is beingtaken for revival of Unit-I.

(e) Steps are being taken to strengthen the system of Physical verification of Inventory.

f) Reconciliation of balances with discom(s) is under process. Out of three discom(s), reconciliation withJaipur discom has been completed and balances are confirmed by company.

(g) Process of reconciliation of balances under the head Liability against supply of material, Supplierscontrol Account, Advance to suppliers & Contractors are taken up and shall be reconciled shortly.

(h) Accounting of whole RVUNL is being done on Tally ERP9 software system. Further only authorizedperson have powers to access for necessary accounting work and if any changes/ corrections requiredtowards the unaudited data, the same are being carried out after obtaining approval of the concernedcompetent authority.

(i) Noted. Care shall be taken in future.


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Form: MR-3SECRETARIAL AUDIT REPORT

For the Financial Year ended on 31st March, 2016{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}

ToThe Members,Giral Lignite Power LimitedCIN: U40109RJ2006SGC023356Vidyut Bhawan, Jyoti NagarJaipur-302005

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherenceto good corporate practices by Giral Lignite Power Limited(hereinafter called "GLPL"/ "the Company"). SecretarialAudit 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 recordsmaintained by the Company and also the information provided by the Company, its officers, agents and authorizedrepresentatives 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 on31st March, 2016complied with the statutory provisionslisted hereunder and also that the Company has proper Board-processes and compliance mechanism in place tothe 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 theCompany for the financial year ended on 31st March, 2016 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 applicableto the Company during the Audit Period)

3. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder; (Not applicable tothe Company during the Audit Period)

4. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extentof Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings; (Notapplicable to the Company during the Audit Period)

5. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of IndiaAct, 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 Requirements)Regulations, 2009;

(d) The Securities and Exchange Board of India (Employee Stock Option Scheme and EmployeeStock Purchase Scheme) Guidelines, 1999;





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(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 onthe 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 Acts, Rules, Regulations,Guidelines, Standards, etc. as mentioned above subject to the following observations:

During the financial year, the composition of the Board is not in compliance with the provisions of the CompaniesAct, 2013, due to non appointment of Independent Directors in the Board and the Company has not compliedwith those provisions of the Act where Independent Directors are mandatorily required.

We further report that, during the year under review:

The Board of Directors of the Company is not duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors and the changes in the composition of the Board of Directors thattook place during the period under review were not carried out in compliance with the provisions of the Act, dueto non-appointment of Independent Directors.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agendaare sent atleast seven days in advance, a system exists for seeking and obtaining further information and clarificationson 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 theminutes.

We further report that there are adequate systems and processes in the company commensurate with the sizeand operations of the company to monitor and ensure compliance with applicable laws, rules, regulations andguidelinesand the Company is advised to further strengthening the same.

We further report that during the audit period the Company has issued & allotted 18,50,00,000 Equity Sharesof Rs. 10/- each aggregating to Rs. 185,00,00,000/- to the Holding Company-Rajasthan Rajya Vidyut UtpadanNigam Limited (RVUN),against the consideration towards transfer of 1x125 MW Unit-2 Stage-II of Giral LigniteThermal Power Station (GLTPS) to Giral Lignite Power Limited (GLPL).


ICSI-Code-P2015RJ038500FRN-13/287/2015


Date:11thNovember, 2016 M. No.: ACS 31342Place: Jaipur C. P. No.:11834

(This report is to be read with our letter of even date which is annexed as Annexure-A which formsan integral part of this report.)


261




"Annexure-A"

ToThe Members,Giral Lignite Power LimitedCIN: U40109RJ2006SGC023356Vidyut Bhawan, Jyoti NagarJaipur-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 respon-sibility 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 assuranceabout the correctness of the contents of the secretarial records. The verification was done on test basis toensure 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 ofthe 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 isthe responsibility of management. Our examination was limited to the verification of procedures on testbasis.

7. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of theefficacy or effectiveness with which the management has conducted the affairs of the Company.


ICSI-Code-P2015RJ038500FRN-13/287/2015


Date:11thNovember, 2016 M. No.: ACS 31342Place: Jaipur C. P. No.:11834


262

Management's response/ replies to the observations of Secretarial Auditors

Observation - During the financial year, the composition of the Board is not in compliance with the provisionsof the Companies Act, 2013, due to non-appointment of Independent Directors in the Board and the Companyhas not complied with those provisions of the Act where Independent Directors are mandatorily required.

Reply - In terms of the Articles of Association of the Company, RVUN (holding company) has the power toappoint all the Directors on the Board of Directors of the Company. It is proposed to appoint IndependentDirectors appointed on the Board of Directors of RVUN in GLPL also.


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Annexure-III


As on the financial year ended on 31st March 2016[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the

Companies (Management and Administration) Rules, 2014]


1. CIN U40109RJ2006SGC023356

2. Registration Date 23/11/2006

3. Name of the Company Giral Lignite Power Limited






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

S. Name and Description of main products/ NIC Code of the % to totalNo. services Product/ service turnover of the

company

1. Generation of Power 35102 100%



Associate held

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


264

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


CATEGORY OF No. of Shares held at No. of Shares held at % changeSHAREHOLDER the beginning of the year the end of the year during

the year


shares shares

(A) PROMOTERS

(1) INDIAN

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

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

(c) State Government - - - - - - - - -

(d) Bodies Corporate NIL 185050000 185050000 100 NIL 370050000 370050000 100 NIL

(e) Financial Institutions / Banks - - - - - - - - -

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

Sub-Total A(1) : NIL 185050000 185050000 100 NIL 370050000 370050000 100 NIL

(2) FOREIGN

(a) Individuals (NRIs/Foreign - - - - - - - - -Individuals)

(b) Bodies Corporate - - - - - - - - -

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


(e) Others - - - - - - - - -

Sub-Total A(2) : - - - - - - - - -

Total A=A(1)+A(2) NIL 185050000 185050000 100 NIL 370050000 370050000 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 - - - - - - - - -

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

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


(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 - - - - - - - - -


265

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


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

Total Public Shareholding

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

Total (A+B) : NIL 185050000 185050000 100 NIL 370050000 370050000 100 NIL

(C) Shares held by custodians, - - - - - - - - -against GDRs ADRs

GRAND TOTAL (A+B+C) : NIL 185050000 185050000 100 NIL 370050000 370050000 100 NIL


Sr. Shareholder's Shareholding at the Shareholding at theNo. Name beginning of the year end of the year

No. of % of % of No. of % of % of % changeShares total Shares Shares total Shares in share

Shares Pledged/ Shares Pledged/ holdingof the encumbered of the encumbered during

company to total company to total theshares shares year

1. Rajasthan Rajya 185049993 100 NIL 370049993 100 NIL NILVidyut UtpadanNigam Limited

2. Shri N.M. Mathur 1 NIL 1 NIL NIL

3. Shri A.K.C. Bhandari 1 NIL 1 NIL NIL

4. Shri P.C. Jain 1 NIL NIL NIL

5. Shri Hemant KumarSinghal 1 NIL 1 NIL NIL

6. Shri K..L. Gupta 1 NIL NIL

7. Shri Sanjay Malhotra 1 NIL NIL

8. Shri P.S. Arya 1 NIL 1 NIL NIL

9. Shri S.S. Meena 1 NIL NIL

10. Shri M.K. Agarwal 1 NIL NIL

11. Shri M.K. Khandelwal 1 NIL NIL

Total 185050000 100 NIL 370050000 100 NIL NIL


1. Rajasthan Rajya Vidyut Shareholding at the Cumulative ShareholdingUtpadan Nigam Ltd. beginning of the year during the year


At the beginning of the year 18,50,50,000 100 100

Date wise Increase / Decrease Allotment of 18,50,50,000 equity shares of Rs.10/- each amounting toin Promoters Share Holding Rs.185,00,00,000/- to holding company Rajasthan Rajya Vidyut Utpadanduring the year specifying the Nigam Limited (RVUN) against the consideration of transfer of 125 MW,reasons for increase/Decrease Unit-2 of Giral Lignite TPS to GLPL on 31.07.2015..(e.g. allotment / Transfer /Bonus/ Sweat equity etc.)

At the end of the year 37,00,50,000 100 100


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

S. For each of the Top 10 Shareholding at the Cumulative ShareholdingNo. Shareholders beginning of the year during the year



Date wise Increase / Decreasein Promoters Share Holdingduring the year specifying thereasons for increase/Decrease(e.g. allotment / Transfer /Bonus/ Sweat equity etc.)

At the end of the year (or onthe date of separation, ifseparated during the year)

NIL


S. Shareholding of each Shareholding at the Cumulative ShareholdingNo. director and each Key beginning of the year during the year

Managerial Personel



Date wise Increase / Decrease - - - -in Promoters Share Holdingduring the year specifying thereasons for increase/Decrease(e.g. allotment / Transfer /Bonus/ Sweat equity etc.)


5. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due forpayment



i. Principal Amount 120,24,99,990 - - 120,24,99,990

ii. Interest due but not paid - - - -

iii. Interest accrued but not paid - - - -

Total (i+ii+iii) 120,24,99,990 - - 120,24,99,990

Change in Indebtedness duringthe financial year

Addition 347,83,30,538 - - 347,83,30,538

Reduction - -

Net Change 347,83,30,538 - - 347,83,30,538


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Indebtedness at the end of theyear

i. Principal Amount 468,08,30,528 - - 468,08,30,528

ii. Interest due but not paid - - - -

iii. Interest accrued but not paid - - - -

Total (i+ii+iii) 468,08,30,528 468,08,30,528

6. Remuneration of Directors and Key Managerial Personnel:(A) Remuneration to Managing Director, Whole-Time Directors and/or Manager:

S. No. Particulars of Remuneration Name of MD/WTD/Manager

1. Gross Salary - - - - -

(a) Salary as per provisions contained in - - - - -section 17(1) of the Income Tax Act

(b) Value of perquisites u/s 17(2) Income - - - - -Tax Act, 1961

(c) Profits in lieu of salary under Section - - - - -17(3) Income Tax Act, 1961

2. Stock Option - - - - -

3. Sweat Equity - - - - -

4. Commission - - - - -

- As % of profit

- Others, specify

5. Others, please specify - - - - -

Total (A) - - - - -

Ceiling as per the Act

(B) Remuneration to Other Directors:

S.No Particulars of Remuneration Name of Directors TotalAmount

1. Independent Directors(a) Fees for attending board committee - - - -

meetings(b) Commission - - - -(c) Other, please specify - - - -

Total (1) - - - -2. Other Non Executive Directors(a) Fees for attending board committee - - - -

meetings(b) Commission - - - -(c) Other, please specify - - - -

Total (2) - - - -Total (B) = (1+2) - - - -Total Managerial Remuneration - - - -Overall Ceiling as per the Act - - - -


268


S.No. Particulars of Remuneration Name of Key Managerial Personnel

1. Gross Salary -

(a) Salary as per provisions contained in section17(1) of the Income Tax Act -

(b) Value of perquisites u/s 17(2) Income Tax Act,1961 -

(c) Profits in lieu of salary under Section 17(3)Income Tax Act, 1961 -

2. Stock Option -

3. Sweat Equity -

4. Commission- As % of profit -- Others (Variable Pay) -

5. Others, please specify -

Total (A) -


Type Section Brief Details of Penalty / Authority Appealof the Description Punishment/ [RD / NCLT made,

Companies Compounding fees / COURT] if anyAct imposed (give Details)

A. COMPANY

Penalty - - - - -



B. DIRECTORS

Penalty - - - - -




Penalty - - - - -



For Giral Lignite Power Limited

(N K Kothari)Place: JAIPUR ChairmanDate: 19.12.2016 DIN-07649438


269

G.N. GUPTA & CO. 27 A, Shri Ram Colony,Chartered Accountants Opp. Khaitan Hospital, Sikar Road, Jaipur-302023


INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF GIRAL LIGNITE POWER LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of GIRAL LIGNITE POWER LIMITED ('the Company'),which comprise the balance sheet as at 31 March 2016, the statement of profit and loss and the cash flowstatement for the year then ended, and a summary of significant accounting policies and other explanatoryinformation.

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 financial statements that give a trueand fair view of the financial position, financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India, including the Accounting Standards specified under Section133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities; selection and applicationof 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 ensuringthe accuracy and completeness of the accounting records, relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from material misstatement, whether due to fraudor error.


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

We have taken into account the provisions of the Act, the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of theAct. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal financial control relevant to the Company's preparation of the financialstatements 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 the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of thefinancial statements.


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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ourqualified audit opinion on the financial statements.

Basis of Qualified Opinion

To the best of our information and according to the explanations given to us, we have obtained the requiredinformation for the conduct of our audit except to the matters included in Annexure I (which forms an integralpart of this report) which gives a statement regarding the comments, qualification and reservations that constitutesthe basis for modifying our opinion.

We further report that during the Financial year 2014-15, the balance under the head Provision for Liability forExpenses of Rs.25.29/- crores and balance from Net Salary Payable a/c of Rs.76.40/- lakh has been transferred toprior period expense/income a/c (being reversing the provision and increasing the income), considering the paymentshad been made in earlier years. Due to this observation, had it been considered the reserve & surplus of thecompany would be Rs.(492.54/-) crore and Provision for expenses would be Rs. 26.054/- crore.

QUALIFIED OPINION

In our opinion and to the best of our information and according to the explanations given to us, excepts for thepossible effects of the matters described in the Basis for qualified opinion paragraph, the financial statements givethe information required by the companies Act, in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India:

(i) in the case of Balance Sheet, of the state of affairs of the company as on 31st March, 2016

(ii) in the case of Statement of Profit and Loss, of the Loss for the year ended on that date and

(iii) in the case Cash Flow Statement, of the Cash Flows for the year ended on that date.

Emphasis on Matter

1. As per the information and explanation given to us, the company had been selected for disinvestmentand the disinvestment process has been under consideration but no final approval has been receivedfrom the Government of Rajasthan. Further, no other information has been available and in absence ofthe same, impact on the "Going concern" assumption could not be identified.

2. The company has recognized the regulatory assets separately in the books of accounts on the basis ofRERC order at Rs.30.17 crores for Unit I & Rs.106.16 crores for unit II being expenditure incurred in theprevious years now allowed to be capitalized and recovery of cost to be made through revised tariff asallowed by the regulatory authority.

Also, the impairment study for the assets has not been carried out and estimated useful life has not been identifiedon any scientific Basis. Secondly, the company has recognized the net regulatory assets (i.e. regulatory Assets lessregulatory liability) where as the regulatory assets & liability should be separately recognized with the remainingestimated useful life on appropriate basis as per the guidance note issued by the "Institute of Chartered accountantsof India".


1. As required by the Companies (Auditor's Report) Order, 2016 ("the Order") issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure astatement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.

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


271

a) We have sought and obtained all the information and explanations which to the best of ourknowledge 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 sofar as it appears from our examination of those books except for the effects of the matter describedin the basis for Qualified Opinion paragraph above and books had been maintained on tallysoftware, which could be changed without approval.

c) The balance sheet, the statement of profit and loss and the cash flow statement dealt with by thisreport are in agreement with the books of accounts.

d) Except for the possible effects of the matters specified in the Basis for Qualified opinion paragraphread with Annexure I, in our opinion, the Balance Sheet, Statement of Profit and Loss and CashFlow statement comply with the Accounting Standards specified under Section 133 of the Act,read with Rule 7 of the Companies (Accounts) Rules, 2013.

e) The matter described in the Basis for Qualified opinion paragraph above, in our opinion, mayhave adverse effect on the functioning of the company.

f) Being a government company, provisions of Section 164 (2) of the Companies Act, 2013 arenot applicable to the company as per the notification issued on dt 5th June 2015.

g) With respect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls, refer to our separate Reportin "Annexure A".

h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule11 of the companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of ourinformation and according to the explanations given to us:

I. The company has disclosed the impact of part of pending litigations on its financialposition in its financial statements which can reasonably be ascertained. However, inabsence of complete

II. information the quantum of Financial impact cannot reasonably ascertained.

III. The company has made provision, as required under the applicable law or accountingstandards, for material foreseeable losses, if any, on long-term contracts includingderivatives contracts except as mentioned in annexure II.

IV. There were no amounts which were required to be transferred to the Investor Educationand Protection Fund by the Company.

For G.N. GUPTA & CO.Chartered Accountants

FRN-004054C

(RAVI GUPTA)Place : Jaipur PartnerDate : 07.09.2016 M. No. 415636


272

ANNEXURE-I

Annexed to and forming part of Audit Report of Giral Lignite Power Limited(GLPL) for the year ended on 31st MARCH 2016

BASIS OF QUALIFIED OPINION:

1. FIXED ASSETS AND DEPRECIATION

The company has charged the depreciation from the date of COD of the units i.e. from 12.03.2011 &18.10.2011. The depreciation should be charged from the date when the assets are ready for thecommercial production, not from the date when the assets are actually used for the commercial production.We concur this principle being the same view has been held by C&AG and had been reported in the lastyears report even in case of unit I and unit II. In absence of required data we are unable to quantify andform an opinion as to the correctness of the amount of depreciation being charged to Statement of Profit& Loss.

There has been on addition in the Plant & Machinery of Rs. 2,61,81,239/- in the books of accounts onthe basis of bills related to previous year, however, the balance confirmation from party and physicalexistence could not made available and verified.

The company has recognized the regulatory assets separately in the books of accounts on the basis ofRERC order at Rs.30.17 crore for Unit I & Rs.106.16 crore for unit II being expenditure incurred in theprevious years now allowed to be capitalized and recovery of cost to be made through revised tariff asallowed by the regulatory authority.

However, the impairment study for the assets has not been carried out as the same has already beenpointed in the Impairment of assets clause. Secondly, the company has recognized the net regulatoryassets (i.e. regulatory Assets less regulatory liability) where as the regulatory assets & liability should beseparately recognized with the remaining estimated useful life on appropriate basis.

2. IMPAIRMENT OF ASSETS

The Unit-I of GLTPP transferred in the company (GLPL) w.e.f. 01/01/2009 has not been able to operateat full capacity since the date of transfer in company (or specifically since the date of synchronization). Ithas been explained that the sulphur content in the Lignite made available to unit is up to 6% andtherefore, approx 30% limestone has to be mixed with Lignite to pacify the hazardous sulphur in order tocontrol SOX (pollutants) within permissible level, which results in choking of plant and then the unit is tobe closed for clearing of choking material. Thus, consistent power generation is not being attained.

There had been a major breakdown during the month of July 2014 due to falling of vertex finder incyclone. ESP, Tubular APH tubes flue gas duct condition is also worse. Economizer tubes are badlydamaged and eco bank coils require replacement.

These are the conditions that suggest that physical damage to assets has taken place and economiccondition is also poor which are clear indicator of Impairment of assets.

Accordingly, there exist conditions to draw conclusion that the 'value in use' (i.e. present value of futurecash flows) of this unit may have gone down as compared to carrying amount of assets. But the companyhas not conducted any assessment in respect of impairment of assets and no provision has been made bythe company in respect of impairment loss. This is not in accordance with the provisions of AS-28'Impairment of Assets' issued by ICAI.


273

3. ACCOUNTING OF NET CONSIDERATION FOR ASSETS TRANSFERRED BY RRVUNL

As per the decision taken in Board Meeting dated 08/10/2008, the transfer of unit-l was to be made at'Net Book Value' of the assets transferred to Giral Lignite Power Limited. As per the books of accountsthe net book value of the assets transferred as on 01/01/2009 is Rs. 456.25 crore. As per the decision ofBoard on 08/10/2008 Giral Lignite power Limited had to issue its equity shares to RRVUNL for anamount equal to net book value of assets. Later on in Board Meeting of RRVUNL on 07/07/2011, it wasdecided to discharge purchase consideration by way of issue of equity shares of Rs. 185 crore andbalance amount of Rs. 271.25 crore repayable to be considered as loan repayable to RRVUNL.

Initially the company has shown whole of the amount of Rs. 456.25 crore as current liabilities since 31/03/2009. During the year 2015, the company has increased the share capital and shares has beenallotted as per resolution passed for allotment of Equity Shares to the Holding company in the boardmeeting held on 15th January 2015, thus the shareholders' funds has been increased by Rs. 185 crore.

In relation to UNIT II as per the decision taken in Board Meeting dated 20/10/2014, information providedto us, and subsequently clarified by the management, the transfer of UNIT-II was to be made at 'NetBook Value' of the assets transferred to Giral Lignite Power Limited. Accordingly, equity shares of Rs.185 crores have been issued and difference between net book value (Assets less Liabilities) and purchaseconsideration of Rs. 185 crores has been accounted for against the amount payable to RVUN.

Balance amount of loan payable in relation to both units has been transferred under the head currentliabilities and adjusted, whereas the same should be considered as loan payable and the amount paidmust be deducted accordingly and balance to be shown under the loan payable. Hence, the currentliability has been overstated and loan payable under stated to that extent.

4. FORMAL AGREEMENT BETWEEN TWO COMPANIES FOR TRANSFER OF UNIT -I &UNIT-II OF GLTPP

Unit-l of GLTPP has been transferred in Giral Lignite Power Limited by virtue of resolution passed inBoard Meeting of RRVUNL on 08/10/2008. We observed that initially there was no formal agreementbetween the companies regarding the terms and conditions of transfer of unit. As informed to us, that anagreement dated 21/09/2011 was entered between the two companies and the agreement has referredto the purchase consideration and the way to discharge it, however, the details of assets and liabilitiestransferred by RRVUNL have not been made a part of agreement with RVUNL and therefore, the bookvalue of the assets forming part of the agreement cannot be assessed.

As per decision taken by Board of directors of RVUNL in the board meetings held on 24/10/2014 totransfer the UNIT-II of GIRAL LIGNITE THERMAL POWER STATION TO GIRAL LIGNITE POWERLIMITED with effect from 1st April 2015 on 'going concern basis' and the consideration for this transfershall be Rs.185 crores in the form equity shares issued by GLPL to RRVUNL. As informed to us, no otherformal agreement has been executed and in the absence, the detail of assets and liabilities transferredcannot be assessed.

As informed to us, no adjustment has been done for inter unit accounts previously held in the books ofUNIT-II.

5. PRICING OF POWER

In case of Financial Year 2015-16, The Rajasthan Electricity Regulatory Commission, Jaipur has passed


274

an order dt.12th Nov 2014 in which they have revised and allowed the new provisional tariff, which isRs. 1.886 per unit as fixed charges and Rs. 1.142 per unit as variable charges for unit I and Rs. 1.4659per unit as fixed charges and Rs. 1.0049 per unit as variable charges for unit II. The company hasrecognized the revenue on the basis of new provisional tariff for the year under audit and the same hasbeen taken on note in note no.13 of Notes to Account.

The tariff continues to be provisional one and keep on changing on year to year basis, the exact amountof sales cannot be determined unless the rates are finalized.

The Auxiliary consumption of unit during the period under audit is 23.44% of total production, which ishigher than prescribed by the RERC.

6. VALUATION OF INVENTORY

The valuation of inventory has been done at weighted average cost. As per the Accounting Standard-2issued by ICAI, the inventory needs to be valued at lower of cost or net realizable value but the NRV hasnot been identified. In absence of the information, we are unable to comment upon the same.

Also the value of inventory as per store department and accounts department does not reconcile.

7. ACTUARIAL VALUATION OF PROVISION FOR RETIREMENT BENEFITS OF THEEMPLOYEES

The company has not got done the actuarial valuation in respect of retirement benefits as envisaged inAccounting Standard-15 issued by ICAI. In the absence of actuarial valuation we cannot comment aboutits effect on profit and loss account and balance sheet.

8. PRIOR PERIOD EXPENSES

In the Financial year 2014-15, the balance under the head Provision for Liability for Expenses ofRs.25.29/- crores and balance from Net Salary Payable a/c of Rs.76.40/- lakh has been transferred toprior period expense a/c (being reversing the provision), considering the payments had been made inearlier years, which are subject to verification and confirmation. Also, no further information has beenprovided during the course of audit and in absence of available information, we are unable to commentupon the same.

9. BALANCE UNDER SALES TAX ACCOUNT

During the Financial year 2014-15, as against the opening balance of sales tax account, which was adebit balance of Rs. 54.62 lakhs was unreconciled and no proper detail was maintained for the same.Secondly, the amount of Rs. 61.71 lakhs has been transferred to MD Vat Account which is subject toreconciliation and verification. Also no information has been provided for the same and hence unable tocomment upon.

10. CONSTRUCTION STORE AND ADVANCES

Advances to Suppliers and Contractors towards capital works are lying unadjusted and un-reconciled.Correspondingly credit balances are also lying in the accounts of some of the same contractors under thehead' Liability for Suppliers'. All the balances are un-reconciled and subject to reconciliation andconfirmation.

11. CURRENT LIABILITES AND CURRENT ASSETS


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a. All the accounts under Liabilities for Supply of Material are subject to reconciliation andconfirmation. There are some accounts having debit as well as credit balance which require setoff/adjustment. However, the same has not been done.

b. No system has been maintained for obtaining balance confirmation from the suppliers andcustomers. All the balances under the head for Supply of Material, Suppliers Control Accountand Advances to Supplier and Advance to contractors are subject to reconciliation andconfirmation.

c. During the Financial year 2014-15, the company has transferred the balance under the head"Liabilities for Employees" to prior period expenses a/c (as income) amounting to Rs.76.40/-Lakhs considering the same has been paid in earlier years which is subject to reconciliation andconfirmation.

Similarly the balance under the head Provision for Liability for Expenses a/c of Rs. 25.29 croreshas been transfered in Prior Period Expense a/c (as income) in the previous year which is subjectto reconciliation and confirmation.

Since the amount has been transferred without reconciliation, the liability of the company hasbeen understated and income has been overstated to that extent.

d. Pension and super-annuation liability are being funded through trust on the basis of contributionby the company. However no reconciliation/confirmation has been provided to us for verification.In absence of reconciliation we are not in a position to comment whether company has paid orprovided all its liabilities towards the trust as per the rules and regulations of the said trust.

e. All the balances of loans and advances and other receivables are subject to reconciliation andconfirmation.

f. The company has not identified the enterprises qualifying under the definition of 'Medium andsmall enterprises' as defined under MSME Act, 2006. As a result the calculation of interestpayable, if any, to Medium and Small Scale enterprises as envisaged in MSME Act cannot bedone and no disclosure in this regard has been done in the report.

g. The Balance of MD Others may includes the amount of Liquidity Damages deducted from thepayment made to the vendors/contractors for delay in execution of contract for the earlier years,as now the company has started recording the same under the head miscellaneous income. Thesame practice is not being followed by the company for the earlier years. The effect of this onincome or expenses of company cannot be assessed.

h. It has been informed that the Holding company i.e. RRVUNL has made some payments to thevendors/contractors and deducted some amounts as miscellaneous deductions as per the termsof contacts/purchase orders with the relevant party in the earlier years. The net amount paid tothe vendor/contractor has been transferred in the books of the company (GLPL) but the deductionmade by the holding company may be standing in the books of holding company due to whichthe liability of the company is understated. In the absence of information, the effect of this onincome or expenses of company cannot be assessed.

12. CONSENT OF LENDERS FOR TRANSFER OF LOANS FROM RRVUNL TO COMPANY

Lenders for GLPL Unit I viz. PFC and Oriental Bank of Commerce have agreed in principle for transferof their loan to GLPL. However in case of loan taken from Canara Bank, the company has not yet


276

received any consent for transfer of loan from RRVUNL to GLPL. In the year under audit, the Unit II hasbeen transferred to GLPL and loan from PFC has also been transferred but the consent has not beenreceived. As per the information given to us, the company has not yet entered/arranged the Tri-partyagreement with the lenders for the same.

13. BORROWING POWERS OF COMPANY

At the time of transfer of Unit-l of GLTPP, the loans taken from various lenders have also been transferredto the Company. As per the provisions of Section 292 and 293 of erstwhile Companies Act, 1956 theborrowing powers of the company are decided by way of consent vide resolution in Annual GeneralMeeting of the Company. But as per information available no such resolution has been passed in theAGM of the company.

For and on behalf ofG.N. GUPTA & CO.Chartered Accountants

FRN-004054C



277

ANNEXURE-II

REFERRED TO IN PARAGRAPH 3 OF OUR AUDIT REPORT OF

EVEN DATE TO THE MEMBERS OF GIRAL LIGNITE POWER LIMITED1. (a) The company has informed that updation of Fixed Asset register had been done till financial

year 2014-15 by an external agency which contains the full particulars including sufficientdescription of the assets, quantitative details, situation and depreciation there on. However, inabsence of the updated fixed assets register as on 31st March 2016, we are unable to commentupon the discrepancies.

During the year under audit, the company has recognized the regulatory assets separately in thebooks of accounts on the basis of RERC order at Rs.30.71 Cr. for Unit I & Rs.106.16 Cr. for unitII being expenditure incurred in the previous years now allowed to be capitalized. Also, this willonly increase/decrease the value of existing assets but no new assets have been acquired.

(b) As informed to us, Physical verification of Fixed Assets has not been carried out during the year.In absence of physical verification report, we are not in a position to comment on the discrepancies,if any relation to the existence of the assets, there being not in working condition and theirlocation and action taken by the company. Also the unit-I is not in operation since long and unit-II is also not in process since January 2016, we are unable to comment on the condition ofassets.

(c) As per the information and explanation given by the management to us, Titles are held with thecompany. However, we were not provided with the complete documents of land and buildingconstructed by company on land of other discoms for our verification.

2. (a) As informed to us, the physical verification of inventory has not been conducted by the companyduring the year. The company has not identified the slow, non-moving and obsolete items/inventory available. Also as per information, the unit I was not in operation since long and unitII is shut down from January. In absence of the physical verification report, comment on materialdiscrepancies noticed and action taken could not be made.

In relation to earlier years, the report of the physical verification observed that items worth Rs.1629.85 lacs were slow moving and had not been consumed for more than three years. Thecompany has not informed regarding any decision taken in this regard and as such reasonabilityand adequacy of the procedure of physical verification is not satisfactory.

3. In our opinion and according to the information and explanations given to us, the company has notgranted any loans, secured or unsecured to/from companies, firm or other parties listed in the registermaintained under section 189 of the Companies Act, 2013.

4. According to the information and explanations given to us, provisions of section 185 and 186 of thecompanies act 2013 have been complied with.

5. According to the information and explanations given to us being a Government company contractsentered with another Government company is exempt from the provisions of section 73 to 76 of theCompanies Act, 2013 and the company has not accepted any deposits from the public.

6. As per information and explanations given to us, Cost records under section 148 of the Companies Act,2013 for the activities carried out by the company, are not maintained.

7. (a) As per information and explanations given to us, we report that the company is generally regularin depositing undisputed statutory dues with appropriate authorities, including Provident Fund,Investor Education Protection Fund, Income Tax, Sales Tax, Value Added Tax, Wealth Tax,Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues to the extentapplicable to it. Also the company is not having statutory dues outstanding more than 6 monthsexcept the debit and credit balances pertaining to earlier years which are subject to reconciliationand confirmation.

No Information has been provided to us in relation to the payment of service tax has been


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made, which the company has considered as liability but the same has been shown as receivablein the service tax return.

(b) According to the information and explanations given to us, there are no dues of sales tax,customs duty, wealth tax, excise duty and cess which have not been deposited on account ofany dispute.

As per information and explanations given to us, the company has deposited the demand ofTDS Rs. 25,27,744/- for the A.Y. 2008-09 and the case is pending before Hon'ble High Court ofRajasthan, Jodhpur.

8. The secured loans of the company are being serviced and handled by its holding company M/s RajasthanRajya Vidyut Utpadan Nigam Limited and hence, unable to comment about the status of default of suchsecured loans.

However, the company also has amount payable of Rs. 662.08/- Crores to RRVUNL (Holding company)on account of transfer of Unit-l & Unit II of GLTPP as well as the transactions for the period after thetransfer of the Unit. No formal terms and conditions of loan from RRVUNL has been provided to us, andwe have been explained that no interest is payable to RRVUNL. The company has regular transactionswith RRVUNL and we cannot assess whether there has been any repayment of loan amount.

During the year, the Unit II of GLTPP has been transferred to Giral Lignite Power Ltd. Equity shares ofRs.185 crores.

9. According to the information and explanations given to us, the company has issued a fresh equity ofRs.185 crore as purchase consideration to RVUNL for the transfer of Unit II GLTPP.

10. According to the information and explanations given to us and during the course of our audit, no fraudon or by the company has been noticed or reported during the period under audit.

11. According to the information and explanation given by the management, the managerial remunerationhas been paid in accordance with the requisite approvals mandated by the provisions of section 197read with Schedule V to the Companies Act, 2013.

12. In our opinion, the company is not a nidhi company. Therefore, the provisions of clause 3(xi) of the orderare not applicable to the company and hence not commented upon.

13. According to the information and explanations given to us, transaction with the related parties are incompliance with section 177 and 188 of Companies Act, 2013 where applicable and the details havebeen disclosed in the notes to the financial statements, as required by the applicable accounting standards.

14. According to the information and explanations given to us, the company has not made any preferentialallotment of shares or fully of partly convertible debentures during the period under audit.

15. According to the information and explanations given to us, the company has not entered into any non-cash transactions with directors or any person connected with them as referred to in section 192 ofCompanies Act, 2013.

16. According to the information and explanations given to us, the provisions of section 45-IA of the ReserveBank of India Act, 1934 are not applicable to the company.


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279

ANNEXURE-A

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATEON THE FINANCIAL STATEMENTS OF GIRAL LIGNITE 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 GIRAL LIGNITE POWER LIMITED("the Company") as of March 31, 2016 in conjunction with our audit of the financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on"the internal control over financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting 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 ensuringthe orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of itsassets, the prevention and detection of frauds and errors, the accuracy and completeness of the accountingrecords, 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 reportingbased on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, to the extent applicableto an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controls over financial reportingwas established and maintained and if such controls operated effectively in all material respects.


We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ourqualified audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonabledetail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles, and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition ofthe company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibilityof collusion or improper management override of controls, material misstatements due to error or fraud mayoccur and not be detected. Also, projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial control over financial reporting may


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become inadequate because of changes in conditions, or that the degree of compliance with the policies orprocedures may deteriorate.

Qualified opinion

According to the information and explanations given to us and based on our audit, the following material weaknesseshave been identified as at March 31, 2016:

a) No internal control matrix has been prepared by the organization. Only the rules and regulation prescribedfor government owned companies are available.

b) As informed to us, Internal department audit in relation to expenditure has not been carried out for theyear under audit.

c) Physical verification of fixed assets have not been carried out, any discrepancies in relation to the existence,working condition and their location could not be ascertained. More importantly being the unit-I is not inoperation since long and unit-II is also not in process since January 2016, condition of impairment mayexist.

d) Repair & maintenance work has been done at unit I where huge damage had been incurred during the2014 due to fire but no actual plan has been framed for the revival of the unit, lacks control over policymatters.

e) Physical verification of inventory has not been conducted by the company during the year. The companyhas not identified the slow, non-moving and obsolete items/inventory available. Inventory may becomenon-useable and hence required strong control over it. Closing stock has not been marked with red ink.

f) Revenue has been recognized on provisional basis and balances with distribution companies have notbeen reconcillied.

g) All the balances under the head for Supply of Material, Suppliers Control Account and Advances toSupplier and Advance to contractors etc. are subject to reconciliation and confirmation and shows lackof the internal control.

h) Accounting has been done Tally software where data can be changed without prior approval of properauthority.

i) There are instances where expenses have been booked for previous year being the payment made in thecurrent year where as no provision made for in earlier years and show lack of internal control.

A 'material weakness' is a deficiency, or a combination of deficiencies, in internal financial control over financialreporting, such that there is a reasonable possibility that a material misstatement of the company's annual orinterim 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 ofthe objectives of the control criteria, the Company has maintained, in all material respects, adequate internalfinancial controls over financial reporting and such internal financial controls over financial reporting were operatingeffectively as of March 31, 2016, based on "the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India".

We have considered the material weaknesses identified and reported above in determining the nature, timing,and extent of audit tests applied in our audit of the March 31, 2016 financial statements of the Company, andthese material weaknesses do not affect our opinion on the financial statements of the Company.


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281

ANNEXURE-III

S.No. General Directions Remarks

1. Whether the company has clear title/lease As per the information and explanation given by thedeeds for freehold and leasehold management to us, Titles are held with the company.respectively? If not please state the area of However, we were not provided with the documents offreehold and leasehold land for which land and building constructed by company on land oftitle/lease deeds are not available? other discoms for our verification.

2. Please report whether there are any cases No such instances observed.of waiver/ write off of debts/loans/interestetc. If yes, the reasons there for and theamount involved.

3. Whether proper records are maintained for No such instances observed.inventories lying with third parties andassets received as gift from Govt. or otherauthorities.




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ANNEXURE-IV

S.No. Specific Directions Remarks

1. In the cases of Thermal Power Projects, As informed to us that the company followed theCompliance of the various Pollution Control compliances laid under Pollution Control Act andActs and the impact thereof including deposited fees regularly. However in the Whenever theutilization and disposal of ash and the coal had been received at the unit, at the same time thepolicy of the company in this regard, may ash had been disposed with the vehicle to coal mines.be checked and commented upon.

2. Has the company entered into revenue The company has not entered under such contract.sharing agreements with private parties forextraction of coal at pitheads and itadequately protects the financial interest ofthe company?

3. Does the company have a proper system of The company has the system of reconciliation ofreconciliation of quantity/quality of coal quality/quantity of coal ordered through store receiptordered and received and whether grade of no. and checks the grade of coal received.coal/moisture and demurrage etc. areproperly recorded in the books of accounts?


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EQUITY AND LIABILITIESA. Shareholders’ funds

(i) Share Capital 1 3,70,05,00,000 1,85,05,00,000(ii) Reserves and Surplus 2 (4,66,49,39,794) (3,28,10,74,041)

B. Non-Current Liabilities(i) Long-Term Borrowings 3 4,68,08,30,528 1,20,24,99,990(ii) Other Long Term Liabilities 4 57,21,20,427 19,77,74,928(iii) Long-Term Provisions 5 2,58,34,734 91,75,408

C. Current liabilities(i) Trade Payables 6 86,26,48,111 47,98,87,303(ii) Other Current Liabilities 7 7,71,97,36,446 6,18,48,78,121(iii) Short-Term Provisions 8 3,30,138 3,46,645TOTAL 12,89,70,60,590 6,64,39,88,354

ASSETSA. Non-Current Assets

(i) Fixed Assets(a) Tangible Assets 9 11,22,07,72,091 6,15,28,98,277(b) Capital work-in-progress 9 6,83,568 -

(ii) Rate Regulatory Assets 9A 1,09,51,20,724 -(iii) Other Non-Current Assets 10 34,000 34,000

B. Current Assets(i) Inventories 11 27,66,84,350 34,48,58,822(ii) Trade Receivables 12 7,66,95,221 28,24,899(iii) Cash and Cash Equivalents 13 2,24,50,294 1,19,47,344(iv) Short-Term Loans and Advances 14 19,30,86,752 12,06,95,024(v) Other Current Assets 15 1,15,33,590 1,07,29,989

TOTAL 12,89,70,60,590 6,64,39,88,354Significant Accounting Policies and 1 to 25Notes on Accounts

The notes attached form an integral part of the financial statementFor and on behalf of the Board of Directors As per our separate report of even date

(N.M. MATHUR) (RAKESH VERMA) For G.N. GUPTA & Co.Chairman Managing Director Chartered Accountants

FRN : 004054C

(S.K. SETHI) (HITESH SHARMA) (RAVI Gupta)Chief Financial Officer Company Secretary Partner

M.No. 415636

Place : JaipurDate : 07.09.2016

BALANCE SHEET AS AT 31st MARCH, 2016CIN - U40109RJ2006SGC023356

(Amount in `)

Particulars Note No. As at As at31st March, 2016 31st March, 2015


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I Revenue from Operations 16 90,43,20,645 27,62,21,212II Other Revenue 17 28,84,491 1,04,11,067

TOTAL REVENUE 90,72,05,136 28,66,32,279 EBIT

III Expenses: Cost of Materials Consumed 18 45,66,75,419 15,41,22,719 Other Direct Expenses 19 1,49,98,184 78,61,263 Finance cost 20 99,93,67,786 28,55,27,570 Employee Benefit Expense 21 6,72,41,274 4,00,96,555 Depriciation & Amortization Expense 22 86,82,39,923 37,72,19,039 Repair & Maintenance Expenses 23 12,11,27,058 12,28,82,088 Administration & General Expenses 24 5,35,63,423 2,63,77,578 TOTAL EXPENSES 2,58,12,13,067 1,01,40,86,810

IV Profit before exceptional and (1,67,40,07,931) (72,74,54,531)extraordinary items and tax

V Prior Period Adjustment 25 4,67,89,767 29,84,61,449(Expense/Incomes/Exceptional items)

VI Profit before extraordinary items and tax (1,62,72,18,164) (42,89,93,082)VII Extraordinary Items - -

Rate Regulatory Income 24,33,52,411VIII Profit before tax (1,38,38,65,753) (42,89,93,082)

Current tax - - Deferred tax - - Earlier Years - -

IX Profit for the period from continuing operations (1,38,38,65,753) (42,89,93,082) Profit from discontinuing operations - - Tax expense of discontinuing operations - - Profit from Discontinuing operations (after tax) - -

X Profit for the period (1,38,38,65,753) (42,89,93,082) EPS- Basic and Diluted (3.74) (11.12)

Significant Accounting Policies 1 to 25Notes on Accounts

The notes attached form an integral part of the financial statementFor and on behalf of the Board of Directors As per our separate report of even date

(N.M. MATHUR) (RAKESH VERMA) For G.N. GUPTA & Co.Chairman Managing Director Chartered Accountants

FRN : 004054C


M.No. 415636


STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED ON MARCH 31, 2016CIN - U40109RJ2006SGC023356

(Amount in `)

Particulars Note No. For the year For the yearended on ended on



285

CASH FLOW STATEMENT FOR THE F.Y. 2015-16CIN - U40109RJ2006SGC023356

Inflow (Outflow)(Amount in `)


Net Profit before taxation & Extraordinary items (1,38,38,65,753) (42,89,93,082)Adjustment

1 Add: Depreciation (Including Prior Period depreciation) 86,82,39,923 37,73,15,8202 Less: Profit from sale of fixed assets3 Tax during the year4 Less: Rate Regulatory Income 24,33,52,411

Adjusted Profit for the year (75,89,78,241) (5,16,77,262)Cash Flow from Operating Activities

1 Sundry Debtors (7,38,70,322) 1,05,84,08,8162 Loans and Advances (7,23,91,728) (1,24,46,061)3 Inventories, Stores and Spares 6,81,74,471 (2,34,04,526)4 Other Current Assets (8,03,600) 28,19,8625 Trade Payables 38,27,60,808 25,63,03,6916 Current Liabilities and Provision 1,53,48,41,818 (2,37,49,64,401)7 Income accrued on Investment, Loans and Advances -8 Other Long Term Liabilities 39,10,04,825 (24,62,65,710)(A) Net Cash Flow from Operating Activities 1,47,07,38,031 (1,39,12,25,591)

Cash Flow from Investing Activities1 Purchase of Fixed Assets (5,84,06,29,118) (78,98,629)2 Transfer of Regulatory Assets from RVUNL (94,79,36,501)3 Construction, Stores and Spares4 Sale of Invetsment(B) Net Cash Flow from Investing Activities (6,78,85,65,619) (78,98,629)

Cash Flow from Financial Activities1 Issue of Equity Shares 1,85,00,00,000 1,85,00,00,0002 Repayment of Secured loan 3,47,83,30,538 (44,00,00,001)(C) Net Cash Flow from Financing Activities 5,32,83,30,538 1,40,99,99,999

(D) Net increase(Decrease) in Cash & 1,05,02,950 1,08,75,779Cash Equivalent (A+B+C)

(E) Opening Cash & Cash Equivalent 1,19,47,344 10,71,565(F) Closing Cash & Cash Equivalent 2,24,50,294 1,19,47,344

For and on behalf of the Board of Directors As per our separate report of even date(N.M. MATHUR) (RAKESH VERMA) For G.N. GUPTA & Co.

Chairman Managing Director Chartered AccountantsFRN : 004054C


M.No. 415636



286

SIGNIFICANT ACCOUNTING POLICIES

1. Basic Accounting Policy

a. The financial statements of the Company have been prepared under historical cost conventionand in accordance with generally applicable accounting standards issued by the Institute ofChartered Accountants of India, the provisions of Companies Act, 2013, the applicable provisionsof Electricity Act, 2003 and generally accepted accounting principles as adopted consistently bythe Company.

b. The Company generally follows Mercantile System of Accounting and recognizes significantitems of income and expenditure on accrual basis except those with significant uncertainties andprice variation claims which are accounted for on cash basis.

2. Fixed Assets and Depreciation

a. The fixed assets are stated at cost, after reducing accumulated depreciation. All costs includingfinancing costs till the commencement of the commercial production attributable to acquisition/construction of fixed assets are capitalized.

b. Depreciation is being charged at the rates notified by the Rajasthan Electricity RegulatoryCommission, Rajasthan vide Notification dated 24.02.2014, effective from financial year 2014-15. Regulatory Commission (RERC) allows depreciation as per the CERC norms in tariff fixation.Therefore the company is charging depreciation as per CERC/RERC rates in the accounts.

c. Depreciation on additions to/deductions from fixed assets during the year is charged on pro-ratabasis from/up to the month in which the asset is available for use/disposal.

d. Pending receipt of the completion reports in respect of capital works, the works completed aretransferred to fixed assets on the basis of the statements approved by the head of the project.

e. Where the cost of depreciable assets has undergone a change during the year due to increase/decrease in long term liabilities on account of exchange fluctuation, price adjustment, change induties or similar factors, the unamortized balance of such asset is depreciated retrospectivelyfrom the commencement of the unit based on the applicable rates of depreciation.

f. Leasehold land is amortized over the period of lease.

3. Investments

The company does not have investments in shares and securities its name.

4. Stores and Spares

a. Stores and spares have been valued at cost. Weighted average method has been used to workout the pricing of issues and valuation of inventories. Various equipment & materials which aremostly heavy and earmarked for specific works are issued/ valued at cost.

b. The stock of low value items of consumables are not maintained and are fully charged to revenue.

5. Revenue Recognition

Revenue from sale of power has been accounted for on accrual basis and has been billed on Discoms asper the regulation of the Rajasthan Electricity Regulatory Commission. The energy sold to each Discomhas been arrived at by apportioning the total units sold amongst JVVNL, AVVNL and JDVVNL in theapproved ratio determined from time to time.

The company has recognized the revenue on the basis of new provisional tariff for the year under audit,since the rates are not finalized.

6. Retirement Benefits

The retirement benefits in respect of pension & gratuity liabilities of personnel have been funded throughtrust 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.


287

7. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is apresent obligation as result of past event and it is probable that there will be an outflow of resources.Contingent Liabilities and Contingent Assets are neither recognized nor disclosed in the financial statements.

8. Share Capital

A resolution has been passed by the Board of Directors, Rajasthan Rajya Vidhyut Utpadan Nigam limited(holding company of GLPL) in its 241st Board meeting held on dated 20th Oct. 2014 at VidhyutBhavan, Jaipur to merge the Unit-II on "going concern basis" into existing wholly owned subsidiarycompany Giral Lignite Power Limited along with its assets and liabilities on book value. The considerationfor the above transfer has been made by the way of allotment of equity shares amounting to Rs.185 croretowards the State Government equity contribution for setting up the aforesaid Unit-2.

The company has increased the share capital as shares has been allotted to RRVUNL as per resolutionpassed for allotment of Equity Shares to the holding company in the 40th board meeting held on 31stJuly 2015, thus, the Share capital of the company has been increased to Rs. 370.05 Crore.

9. Rate Regulatory Assets/Liabilities

a. Expenses/Income recognized in the statement of Profit and Loss account to the extent recoverablefrom or payable to the beneficiaries in the subsequent periods as per the Rajasthan ElectricityRegulatory Commission(the RERC) Tariff Regulations are recognized as Rate Regulatory Assets/Liability. Rate regulatory assets/liabilities is being amortized during the useful life of plant whichis assumed 25 years by the RERC.

b. Regulatory Assets/Liability is adjusted from the year in which the same becomes recoverable orpayable to the beneficiaries.

10. Miscellaneous

a. Expenses on training and recruitment, research and development are charged to revenue.

b. Expenses incurred on raising finance are being charged to revenue in the year in which these areincurred.

c. Interest on loans and advances to staff is recovered after completion of' recovery of principalamount.

d. Claims for grade difference, shortage of coal etc. lodged on coal companies are accounted for asand when the credit notes are received by adjusting/recognizing the same in the Profit and Lossaccount of the current year, irrespective of the period to which it pertain. No provision is madefor above claims due to uncertainty of receipt of the same.

e. 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 shownas income and accordingly net interest is charged to Profit & Loss Account.




M.No. 415636Place : JaipurDate : 07.09.2016


288

NOTES TO ACCOUNTSF.Y. 2015-16

1. a) In respect of Inter Company transactions with other successor Companies of erstwhile RSEB, nointerest/surcharge has been charged/paid by the Company during the year.

b) The Inter Company & Inter Unit Transactions up to 31.03.2016 respectively have been reconciled.

2. Penal interest/commitment charges, if any, have not been shown separately and are included in interest& finance charges.

3. Provision for liability for expenses/creation of prepaid expenses is not generally made for small/pettyamounts.

4. The balances of all third Parties are subject to confirmation and reconciliation from such parties.

5. The provision for ex-gratia has been created on the basis of present strength of officers/employees.

6. There are additions in the Fixed Assets which had been acquired in earlier years but had not been takenin the books of accounts. The same have been considered and the depreciation has been provided forthe current period only.

7. No provision for deferred tax assets/liability pursuant to AS-22 "Accounting for Taxes on Income" hasbeen made by the company as there is no virtual certainty supported by convincing evidence that thereshall be any future tax liability against which the provisions can be adjusted. Therefore it has beenconsidered that no provision be made pursuant to AS-22.

8. The land on which the Rest House and Residential Colony are developed at GLTPP in Barmer citystands owned by RRVUNL and JDVVNL respectively.

9. Capital commitments and contingent liabilities:- Nil

10. During the F.Y. 2008-09, the company had received a demand notice of Rs. 25,27,744/- for the A.Y.2008-09 from Income Tax Officer (TDS)-2, Jodhpur. The company has gone into further appeal beforeCommissioner of Income Tax (Appeals) (CIT-A) as well as ITAT, Jodhpur against the said order and theCIT-A as well as ITAT has decided the case against the company and company has deposited Rs. 25,27,744/- 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. 25,27,744/- as expenditure till the end ofthe reporting period and the same is standing as Short Term Loans and advances to Others.

11. GLPL is engaged in the generation of electricity and selling thereof to the Distribution Companies.Generation of electricity is one and single product. Hence AS-17 "Segmental Reporting" is not applicableon GLPL.

12. In view of multiplicity and difficulty in identification of accounts relating to small scale industrial undertaking,information for determining the particulars relating to current indebtedness to such undertaking as requiredunder Micro, Small arid Medium Enterprises Development Act, 2006, is not readily available.

13. The GLPL Unit-I, commissioned on 28.02.2007, since then it was running on Trial-run upto declarationof COD i.e. 18.10.2011. The units generated during this period have been charged to Discoms as InfirmPower rate.

In case of F.Y. 2015-16, the Rajasthan Electricity Regulatory Commission, Jaipur has passed an orderdated 12.11.14 in which they have revised and allowed the new provisional tariff which is Rs. 1.886 perunit as fixed charges and Rs.1.142 per unit as variable charges. The company has recognized the revenueon the basis of new provisional tariff for the year under audit, since the rates are not finalized.

14. (a) The Board of Directors of RRVUNL in its 149th and 150th meeting held on 8th October, 2008and 7th November, 2008, respectively accorded approval to transfer the business of its 1x125MW Unit-1 (Stage-I) of Giral Lignite Thermal Power Project situated at Giral in District of Barmer,


289

Rajasthan to Giral Lignite Power Limited (GLPL), a wholly owned subsidiary of the Companyon 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 saidsubsidiary company (GLPL) to RRVUN, with effect from 1st January, 2009 (to be considered aseffective date of transfer). Accordingly all the assets & liabilities of GLTPP has been transferredto GLPL w.e.f 1st January, 2009 after finalization of audited accounts of RRVUNL for thefinancial year 2008-09, the consideration for the above transfer should have been received inthe form of equity shares in GLPL for the amount of "Net Book Value of Assets transferred" andother transactions shall be treated as Debtors/Creditors as the case may be. Now the companyhas passed a resolution in its 37th meeting of Board of Directors held at Vidhyut Bhawan, Jaipuron 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 UtpadanNigam Limited. Accordingly the current liabilities has been reduced by Rs.185 Crores whichwas payable to RVUNL (H.Q.).

(b) The Board of Directors of RRVUNL in its 241st meeting held on dated 20 October, 2014 accordedapproval to transfer the business of its Unit-2 (125 MW) Stage-II of Giral Lignite Thermal PowerProject situated at Giral in District Barmer, Rajasthan to Giral Lignite Power Limited (GLPL), awholly owned subsidiary of the company on a "going concern basis" along with all its assets andliabilities on book value. The consideration, for the above transfer was approved in the form ofequity shares in the said subsidiary company (GLPL) to RRVUNL, with effect from 1st April,2015 (to be considered as effective date of transfer). Accordingly all the assets & liabilities ofGLTPP has been transferred to GLPL w.e.f 1st April, 2015 after finalization of audited accountsof RRVUNL for the financial year 2014-15. The consideration for the above transfer shouldhave been received in the form of equity shares from GLPL for the amount of "Net Book Valueof Assets transferred" and other transactions shall be treated as Debtors/Creditors as the casemay be. Now the company has passed a resolution in its 40th meeting of Board of Directorsheld at Vidhyut Bhawan, Jaipur on dated 31st July 2015 and considered allotment of18,50,00,000/- equity shares of Rs.10/- each aggregating to Rs.185,00,00,000/- to its holdingcompany Rajasthan Rajya Vidhyut Utpadan Nigam Limited. Accordingly the current liabilitieshas been reduced by Rs.185 Crores which was payable to RVUNL (H.Q.).

15. Lenders for GLPL i.e. PFC and banks are agreed in principle for transfer of their loan to GLPL. Howevertripartite agreement is in the process of execution, till such time, it is agreed between RVUN and GLPLthat RVUN shall meet out the financial/contractual commitments (including debt servicing) regardingloans already availed from the financial institutions. Expenditure incurred by RRVUNL in this regardshall be reimbursed by GLPL.

16. Details of remuneration to Auditors:

Particulars Current Year Previous Year(Amount in `) (Amount in `)

a. For Audit fees to Statutory Auditors 60000/-* 50,000/-*

b. For Audit fees to Tax Auditors - -

c. For Audit foes for VAT Auditors - -

d. For reimbursement of out of pocket expenses - -

Total 60000/- 50,000/-

(* Excluding Service Tax)


290

17. Licensed & installed capacities


a) Licensed Capacity (MW) 250 MW 125 MW

b) Installed Capacity (MW) 250 MW 125 MW

18. Quantitative information in respect of Generation and Sale of Electricity:

Particulars Units Generated Aux. Consumption Net Units Sold(MU) (MU) (MU)

Commercial Period 254.031 59.55324 194.4778

Pre Commercial Period NIL NIL NIL

Grand Total 254.031 59.55324 194.4778

19. a) No earning in foreign exchange was accrued during the year.

b)

Value of components, Total Current Year Previous YearStores and Spare parts Consumption (%) (` In Crores) (` In Crores)

Consumed (including Fuel,Lubricants, etc)

Indigenous 100 46.84 16.06

Imported - - -

20. Disclosure as required by Accounting Standard 18 (AS-18) "Related Party Disclosures" issued by TheICAI are as follows

a) Names of the related party and description of relationship:

Related parties where control exists Relationship

1. Rajasthan Rajya Vidyut Utpadan Nigam Ltd Holding Company

2. Sh.N.M. Mathur Chairman

3. Sh. Rakesh Verma Managing Director

4. Sh. U.D. Khan Director

5. Sh. M.K.Agarwal Director

b)

Details of Transactions ` (In Crores)

Amount Payable to RRVUNL 662.08


291

c) Employees remuneration and benefits include remuneration to the Chairman & Managing Director andDirectors are as follows:

Particulars Current Year Previous Year(Amount in `) (Amount in `)

Salary & Allowances, Contribution to ProvidentFund and other funds 1382149/- 1444023/-

Other benefits - -

Total 1382149/- 1444023/-

21. Rajasthan Electricity Regulatory Commission has sanctioned vide order no. Petition No. RERC/483/14dated 12.08.15 and Petition No. RERC/481/14 dated 12.08.15 to the GLPL an additional capital costfor Unit-I amounting to Rs. 30.17/- crore and for Unit-II 106.16/- crore. The additional cost has beenshown regulatory assets in the books of accounts for both the units in accordance with the "GuidanceNote on Accounting of Rate Regulated Activities" issued by ICAI and accounting policy no. 9. Thecompany has recognized Regulatory Income in the statement of Profit & Loss account Rs. 24.33/- crorefor Unit I and in case of unit II the same has been recognized as liability of RVUNL being expenditureincurred by the RVUNL in earlier years and not transferred to the company. Hence, Regulatory Assets inthe Balance sheet has been recognized amounting to Rs. 109.51/- crore (net of Amortization upto march2016).

GLPL has recognized as current liabilities in balance sheet payable to RVUNL Rs. 112/- crore for the partof regulatory assets recognized for Unit-I Rs. 5.84/- crore (on proportionate basis) & Unit II Rs.106.16/-crore booked. As per RERC norms GLPL has assumed useful life of assets 25 years for amortizingregulatory assets over the period.

Further GLPL has claimed amortization amount to Rs. 17.20/- crore from RVUNL which is accumulatedamortized value on behalf of Unit-II for the period from 2010-11 to 2014-15. GLPL has booked as anexpense in current year amortized value on regulatory assets in the head 77.240 Amortization on regulatoryassets and has been reduced from the gross value of regulatory assets amounting to Rs. 5.37/- crore forUnit-I and Rs. 21.45 crore (i.e. Rs. 17.20/- crore from 2011-12 to 2014-15 & Rs. 4.25/- Crore for theyear 2015-16) for Unit-II.

Further the following disclosure has been made in statement form :

a) (Amount in crores)

Particulars Unit I Unit II

RERC Additional Capital Cost Sanctioned 30.17 106.16

Regulatory income recognized in the books of accounts 24.33(` 5.84 crore is payable to RVUNL from regulatory income)

Accumulated amortization on above additional assets booked 5.37 17.20+4.25=has been reduced from the above regulatory assets and charged 21.45in the statement of Profit and loss account i.e. for the Period2011-12 to 2015-16 (in case of Unit-II Amortization of` 17.20 crore is for the period 2011-2015 and has beenclaimed from RVUN and ` 4.24 crore amortization is for theperiod 2015-16 has been charged in the books of GLPL.

Net Regulatory Income recognized in the statement of Profit and 24.33 -Loss account

Net Regulatory Assets recognized in the Balance sheet i.e. Net of 20.55 88.95above accumulated depreciation


292

b) Year-wise restatement of profits of GLPL Unit-I, being addition in the Fixed assets, as allowedby RERC:

(Amount in crore)

Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Present Reserve & surplus (Before (90.79) (158.46) (224.14) (296.54) (285.20) (328.10)withdrawing interest expenses forcapitalization)

Opening Reserve & Surplus (5.69) (60.61) (128.28) (193.96) (266.35) (255.02)

Profits/Loss during respective F.Y. (85.09) (67.67) (65.68) (72.39) 11.33 (42.89)

Add: Interest Expenses withdrwan and 30.17 - - - - -Capitalised

Re-stated Reserve & surplus (After (60.61) (128.28) (193.96) (266.35) (255.02) (297.91)withdrawing interest expenses forcapitalization)

(c) Statement showing item-wise addition in value of fixed assets from the date of COD on the part ofregulatory assets as approved by RERC, considering the part of capital cost:-

Unit I (Amount in `)


Cost valuation

Land & land Rights 1,44,95,784 5,04,216 1,50,00,000

Building & Civil works of Power Plants 92,21,06,475 2,92,93,525 95,14,00,000

Hydraulic Works 82,93,66,452 (13,85,66,452) 69,08,00,000

Plant & machinery 5,75,56,38,702 41,01,61,298 6,16,58,00,000

Lines & cable Network 44,23,994 1,76,006 46,00,000

Vehicles 16,32,672 (32,672) 16,00,000

Furniture & Fixtures 36,51,766 1,48,234 38,00,000

Office Equipments 13,28,788 71,212 14,00,000

TOTAL 7,53,26,44,633 30,17,55,367 7,83,44,00,000

Unit II (Amount in `)


Cost valuation

Building & Civil works of Power Plants 2,08,81,025 29,00,000 2,37,81,025

Hydraulic Works 10,16,54,481 18,91,00,000 29,07,54,481

Plant & machinery 7,15,02,59,416 84,85,00,000 7,99,87,59,416

Lines & cable Network 15,20,70,023 2,10,00,000 17,30,70,023

Furniture & Fixtures 1,24,819 - 1,24,819

Office Equipments 3,17,810 1,00,000 4,17,810

TOTAL 7,42,55,21,302 1,06,16,00,000 8,48,71,21,302


293

22. Details regarding land titles on which main plant building situated at village Thumbli, Teh. Shiv, Barmerand residential colony of Urja Nagar, Jalipa, Barmer constructed has been annexed separately. Landtitles of the land on which the residential colony situated at Vidyut Vihar, Barmer has been constructedlies with the Jodhpur Discom, Land titles of the land on which the building of accounts office situated atIndira nagar, Barmer also lies with Jodhpur Discom. Land titles of the land on which Rest house buildingsituated at Sindhari Road, Barmer is constructed lies with Rajasthan Rajya Vidyut Prasaran Nigamlimited.

23. The company has maintained books of accounts on the Tally ERP 9 accounting software.

24. Notes to accounts form an integral part of accounts and have duly been authenticated.

25. The figures have been rounded off to nearest rupee wherever considered necessary.

26. Previous year's figures has been restated, regrouped and rearranged, wherever considered necessary, toconfirm to this year's classification.

27. The classification of assets and liabilities into long term or short term as required by the companies act,2013 has been done on the basis of information, explanations and the estimates given by the management.




M.No. 415636



294

Authorised

375000000 Equity Shares of Rs. 10/- each 3,75,00,00,000 2,00,00,00,000

Issued, Subscribed and Fully Paid up

370050000 Equity Shares ofRs. 10/- each Fully Paid 54.600 3,70,05,00,000 1,85,05,00,000

Total 3,70,05,00,000 1,85,05,00,000

NOTES TO BALANCE SHEET AS THE MARCH 31, 2016NOTE 1

(Amount in ` )

Share Capital Account As at As atCode 31st March, 2016 31st March, 2015

NOTE 1ADisclosure pursuant to Note no. 6(A)(d) of Part I of Schedule VI to the Companies Act,1956

Reconcilliation of Shares As at 31st March, 2016 As at 31st March, 2015

Number Amount Number Amount

Shares outstanding at the begining of the year 18,50,50,000 1,85,05,00,000 50,000 5,00,000

Shares Issued during the year 18,50,00,000 1,85,00,00,000 18,50,00,000 1,85,00,00,000

Shares bought back during the year - - -

Shares outstanding at the end of the year 37,00,50,000 3,70,05,00,000 18,50,50,000 1,85,05,00,000

(Above disclosure is required for each class of Shares held by its holding company or its ultimate holding companyincluding shares held by or by subsidiaries or associates of the holding company or the ultimate holding companyin aggregate.)

NOTE 1BParticulars of equity share holders holding more than 5% of the total number of equityshare capitalDisclosure pursuant to Note no. 6(A)(g) of Part I of Schedule VI to the Companies Act,1956 (if more than 5%)

Name of Shareholder As at 31st March, 2016 As at 31st March, 2015

No. of Shares % of Holding No. of Shares % ofheld held Holding

1 Rajasthan Rajya Vidyut Utpadan 37,00,49,993 100% 18,50,49,993 100%Nigam Limited

1) The company has only one class of equity shares having par value of Rs. 10 per share. Each share holderis entitled to one vote per share.

2) Company has not declared any dividend during the year ended March 31st, 2016.3) 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.


295

Surplus

Opening balance (3,28,10,74,041) (2,85,20,80,959)

(+) Net Profit/(Net Loss) For the current year (1,38,38,65,753) (42,89,93,082)

Total (4,66,49,39,794) (3,28,10,74,041)

NOTE 2

(Amount in ` )

Reserves & Surplus Account As at As atCode 31st March, 2016 31st March, 2015

Secured Loans

Loan from PFC (10.50% - 14.00%) 53.550 76,24,99,996 1,06,74,99,990

Loan from PFC 07301015 (Unit-II) 53.550 2,20,50,00,002 -

Loan from PFC 07301022 (Unit-II) 53.550 1,71,33,30,530 -

Loan from OBC ( 9.00% -9.75%) 53.596 - 8,50,00,000

Loan from Canara Bank (9.50% - 11.00%) 53.599 - 5,00,00,000

Total 4,68,08,30,528 1,20,24,99,990

NOTE 3

(Amount in ` )

Long Term Borrowings Account As at As atCode 31st March, 2016 31st March, 2015

* Secured by Govt. Guarantee and Default Escrow.

** Secured by Govt. Guarantee, Default Escrow and Hypothecation of Assets.

Note 3A

S.No. Particulars Loan's Amount Outstanding Term Installment Amt.a) Loan from PFC 76,24,99,996 10 Quartely 7.625 crore

b) Loan from PFC 07301015 2,20,50,00,002 30 Quartely 7.350 crore(Unit-II)

c) Loan from PFC 07301022 1,71,33,30,530 30 Quartely 5.710 crore(Unit-II)

d) Loan from OBC - - 4.250 crore

e) Loan from Canara Bank - - 2.500 crore


296

Security Deposits 46.102 2,76,58,763 2,38,72,950

E.M.D. 46.103 77,08,360 1,19,05,490

Retention Money 46.104 20,57,09,048 5,15,00,623

M.D.- Others 46.968 32,97,19,026 10,93,12,881

Stale Cheques 46.910 13,25,230 11,82,983

Total 57,21,20,427 19,77,74,928

NOTE 4

(Amount in ` )

Other Long Term Liabilities Account As at As atCode 31st March, 2016 31st March, 2015

Provision for Liability for Expenses 46.430 - 91,75,408

Provision for Liability for Works 42.600 2,58,34,734 -

Total 2,58,34,734 91,75,408

NOTE 5

(Amount in ` )

Long-Term Provisions Account As at As atCode 31st March, 2016 31st March, 2015

Liability for Supply of Material 42.110 23,75,58,309 7,13,70,848

Suppliers Control A/c 42.200 62,21,49,514 40,47,65,335

Laibility for Works 42.300 29,40,288 37,51,120

Total 86,26,48,111 47,98,87,303

NOTE 6

(Amount in ` )

Trade Payables Account As at As atCode 31st March, 2016 31st March, 2015


297

Current Maturities of Long Term Debts 96,24,44,066 44,00,00,001

Liabilities Employees 44.xxx 55,22,450 54,08,209

Sales Tax 46.330 6,99,536 4,57,532

TDS Income Tax 46.924 3,87,270 4,68,204

Other Levies Payable 46.390 7,827 7,827

M.D.- C.P.F 46.921 15,51,127 5,38,696

Payable to RVUNL 46.980 & 28.940 6,62,08,94,034 5,72,86,87,566

Service tax 46.335 (15,985) -15,985

Interest Accrued but not Due on Borrowings 46.710 11,80,10,949 -

Remittance in Transit 24.6xx & 46.905 1,02,35,172 93,26,071

Total 7,71,97,36,446 6,18,48,78,121

NOTE 7

(Amount in ` )

Other Current Liabilities Account As at As atCode 31st March, 2016 31st March, 2015

Provision for Gratuity Fund 44.110 1,08,972 83,224

Provision for Super Annuation Fund 44.120 24,208 22,786

Provision for Exgratia 44.140 1,96,958 2,40,635

Total 3,30,138 3,46,645

NOTE 8

(Amount in ` )

Short Term Provisions Account As at As atCode 31st March, 2016 31st March, 2015

Details as per attached annexure "A" 10.xxx & 12.xxx 11,22,07,72,091 6,15,28,98,277

NOTE 9

(Amount in ` )

Fixed Assets, Depreciation Account As at As at& Amortisation Code 31st March, 2016 31st March, 2015

(Net Block) (Net Block)


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300

Security Deposit

Security Deposit with C.T.O. -JPR 28.915 34,000 34,000

Total 34,000 34,000

NOTE 10

(Amount in ` )

Other Non-Current Assets Account As at As atCode 31st March, 2016 31st March, 2015

Coal Stock 21.101 1,76,43,476 7,79,75,031

Oil Stock 21.105 20,37,132 65,52,072

Capital Stock 22.xxx 25,70,03,742 26,03,31,719

Total 27,66,84,350 34,48,58,822

NOTE 11

(Amount in ` )

Inventories Account As at As atCode 31st March, 2016 31st March, 2015

Trade receivables exceeding six months

Unsecured, considered good

Trade Receivables less than six months

Unsecured, considered good

- Receivable against sale of Power to JVVNL 23.802 2,93,76,822 4,07,270

- Receivable against sale of Power to AVVNL 23.803 2,30,64,074 18,63,945

- Receivable against sale of Power to JDVVNL 23.804 2,42,54,325 5,53,684

Total 7,66,95,221 28,24,899

NOTE 12

(Amount in ` )

Trade Receivables Account As at As atCode 31st March, 2016 31st March, 2015


301

a. Cash on hand 24.110 5,744 15,476

b. Balances with banks

(i) In current Accounts 24.301 & 24.401 2,24,44,550 1,19,31,868

(ii) In Deposits Accounts

Total 2,24,50,294 1,19,47,344

NOTE 13

(Amount in ` )

Cash and Cash Equivalents Account As at As atCode 31st March, 2016 31st March, 2015

Advance to Suppliers 25.200 16,00,27,854 8,89,87,799

Advance to Contractors 25.600 1,66,71,815 1,57,17,874

T.A. Advance 27.203 9,200 16,200

Other Advances 27.209 1,63,73,289 1,59,68,556

Departmental Advances 27.801 281 281

Other Misc. Advance 27.803 4,313 4,313

Total 19,30,86,752 12,06,95,024

NOTE 14

(Amount in ` )

Short-Term Loans and Advances Account As at As atCode 31st March, 2016 31st March, 2015

Recoverable from Suppliers 28.810 44,004 44,004

Recoverable from Contractors 28.811 58,72,157 58,69,796

Prepaid Expenses 28.820 56,17,429 51,09,801

Inter unit a/c 30-37 - (2,93,612)

Total 1,15,33,590 1,07,29,989

NOTE 15

(Amount in ` )

Other Current Assets Account As at As atCode 31st March, 2016 31st March, 2015


302

Revenue From Sale of Power 61.410 90,43,20,645 27,62,21,212

Total 90,43,20,645 27,62,21,212

NOTES TO STATEMENT OF PROFIT AND LOSS FOR THE YEAR MARCH 31st, 2016

NOTE 16

(Amount in ` )

Revenue from Operations Account For The Year Ended For The Year EndedCode 31st March, 2016 31st March, 2015

Sale of Scrape 62.340 - 23,58,011

Quarter Rent 62.901 78,960 1,23,344

Income From Erector Hostel 62.908 74,560 3,61,790

Sale of Tender Form 62.917 24,200 55,700

Others Misc. Receipts 62.950 27,06,771 75,12,222

Total 28,84,491 1,04,11,067

NOTE 17

(Amount in ` )

Other Revenue Account For The Year Ended For The Year EndedCode 31st March, 2016 31st March, 2015

Cost of Coal Consumable 71.110 43,82,35,290 14,17,74,549

Cost of Oil Consumed 71.120 1,23,40,841 51,59,918

Cost of Water 71.500 32,88,560 13,96,224

Lubricant & Consumable 71.600 28,10,728 57,92,028

Total 45,66,75,419 15,41,22,719

NOTE 18

(Amount in ` )

Cost of Materials Consumed Account For The Year Ended For The Year EndedCode 31st March, 2016 31st March, 2015


303

Other Direct Expenses 71.800 1,49,98,184 78,61,263

Total 1,49,98,184 78,61,263

NOTE 19

(Amount in ` )

Other Direct Expenses Account For The Year Ended For The Year EndedCode 31st March, 2016 31st March, 2015

Basic Pay 75.1xx 2,94,32,328 1,57,08,247

Dearness Allowance 75.3xx 2,85,39,004 1,57,97,096

Other Allownaces 75.4xx 10,41,118 6,13,822

Othet Staff Related Expenses 75.6xx 30,53,409 58,20,714

Medical Exp. Incurred Disp. at Proj. 75.7xx 3,45,766 1,98,665

Terminal Benefits 75.8xx 48,29,649 19,58,012

Total 6,72,41,274 4,00,96,555

NOTE 21

(Amount in ` )

Employee Benefit Expense Account For The Year Ended For The Year EndedCode 31st March, 2016 31st March, 2015

Interest on Loan From PFC 78.517 75,25,01,557 18,18,80,941

Interest on Loan From OBC 78.527 1,40,00,164 2,35,79,474

Interest on Loan From Canara Bank 78.529 69,09,657 1,25,40,982

Other Finance Charges 78.830 21,68,76,464 6,20,59,274

Bank charges 78.883 13,310 27,064

Guarantee charges 78.884 88,92,008 54,39,835

Lease Rentals 78.891 1,74,626 -

Total 99,93,67,786 28,55,27,570

NOTE 20

(Amount in ` )

Finance Cost Account For The Year Ended For The Year EndedCode 31st March, 2016 31st March, 2015


304

Plant & Machinery 74.1xx 10,92,79,721 11,82,64,021

Building 74.2xx 770 1,458

Others Civil Works 74.3xx 1,17,01,171 45,18,840

R & M of Truck, Tempo, HPP 74.6xx 1,45,396 93,819

R&M - Office Equipments 74.8xx - 3,951

Total 12,11,27,058 12,28,82,088

NOTE 23

(Amount in ` )

Repair and Maintenance Expenses Account For The Year Ended For The Year EndedCode 31st March, 2016 31st March, 2015

Rates & Taxes 76.102 27,260 2,05,293

Licence & Registration 76.103 1,99,405 1,43,885

Insurance on Fixed Assets 76.104 1,24,24,255 68,05,609

Insurance of Vehicle 76.107 60,476 35,060

Secretarial Services 76.108 1,33,31,838 78,15,897

Telephone Expenses 76.111 4,87,085 2,09,183

Postage & Telegram 76.112 14,595 5,646

Legal Exp. 76.121 98,69,000 6,39,483

Audit Fee 76.122 97,879 83,708

Other Professional Charges 76.125 3,38,312 -

Tariff Fees 76.126 12,50,000 -

Travelling Expenses- Actual Fare 76.132 8,209 1,01,723

Travelling Expenses-Other Than Actual Fare 76.133 28,56,032 11,10,173

Hiring Vehicle(LV) 76.135 - 16,22,841

Vehicle Running Expenses 76.136 2,30,110 2,15,328

Vehicle Hiring Charges(HV) 76.137 84,77,065 24,61,211

Newspaper & Magazines 76.150 6,964 3,444

NOTE 24

(Amount in ` )

Administration and General Expenses Account For The Year Ended For The Year EndedCode 31st March, 2016 31st March, 2015


305

(Amount in ` )

Administration and General Expenses Account For The Year Ended For The Year EndedCode 31st March, 2016 31st March, 2015

Fee & Subscription 76.151 4,37,881 9,41,837

Printing & Stationary 76.153 1,23,823 1,05,150

Hot & cold charges 76.156 - -

Electricity Charges 76.158 10,39,991 3,55,052

Water Charges 76.160 1,43,164 93,938

Meeting Expenses-Out Side Office 76.161 3,350 2,436

Orderly Expenses 76.166 1,72,448 1,04,666

Sumptuary Expenses 76.168 2,421 3,143

Hiring Computer 76.170 - -

Misc. Expenses 76.190 63,633 49,784

Other Freight Charges 76.220 2,62,170 2,76,527

Transit Insurance 76.230 2,13,003 26,671

Vehicle Running Expenses - Truck 76.240 - 1,550

Advertisement of Tenders 76.260 8,37,141 10,42,921

Store Incendital Charges 76.270 - 1,351

Consultancy Charges 76.123 5,85,960 19,14,076

Round off (47) (3)

Total 5,35,63,423 2,63,77,578

Prior Period Income 62.900 1,94,181 -

Prior Period Expenses 83.210 51,31,783

Repair & Maintainance 83.200 (4,98,000) 4,98,000

Other Operting Expenses 83.300 (1,46,60,836) 800

Administrative & General Expenses and 83.820 & 7,000 (29,23,77,806)Interest on loan 83.210

Employee Cost 83.500 24,799 (65,82,443)

Other Income Related to Prior Period 62.900 (3,69,88,694)sale of Power

Total (4,67,89,767) (29,84,61,449)

NOTE 25

(Amount in ` )

Prior Period Expenses Account For The Year Ended For The Year EndedCode 31st March, 2016 31st March, 2015


306

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIAUNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE

FINANCIAL STATEMENTS OF GIRAL LIGNITE POWER LIMITED FOR THEYEAR ENDED 31 MARCH 2016.

The preparation of financial statements of Giral Lignite Power Limited for the year ended 31st March,2016 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 is theresponsibility of the management of the company. The Statutory Auditors appointed by the Comptroller andAuditor General of India under Section 139(5) of the Act are responsible for expressing opinion on the financialstatements under section 143 of the Act based on independent audit in accordance with the standards on auditingprescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Reportdated 11 November, 2016.

I, on behalf of the Comptroller and Auditor General of India, have decided not to conduct thesupplementary audit of the financial statements of Giral Lignite Power Limited for the year ended 31 March 2016and as such have no comments to make under Section 143(6)(b) of the Act.

For and on behalf of the Comptrollerand Auditor General of India


(Economic & Revenue Sector Audit)Place : JAIPUR Rajasthan, JaipurDate : 11.11.2016

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