THE WES BENGA POWEDEELOMEN CROAIO LIIE (A~~ Goenmn of Wes BeglEtepie AN x' s Surface Miner in Operation at Barjora Coal Mine Top view of the Mine with well defined benches and charging of holes and Pumping at Pachhwara (North) Coal Mine of WBPDCL Rooftop Solar PV Power Plant at BKTPP Ground Solar PV Power Plant at KTPP. (Production Capacitv 2.87 MW) (Production Capacitv 2.27MW) WBPDCL CORPORATE INFORMATION BOARD OF DIRECTORS (as on 28.12.2078) Shri Santanu Basu, IAS - Chairman & Managing Director Smt. Smaraki Mahapatra, IAS - Govt. Nominee Director Dr. Anindya Narayan Biswas, IAS - Govt. Nominee Director Shri Srikumar Banerjee - Independent Director Shri Rahul Guha - Independent Director Shri Ashim Kumar Maitra - Independent Director (w.e.f. 12.03.2018) Shri Samar Jha - Independent Director (w.e.f. 12.03.2018) Shri Amit Bhattacharyya - Director (Regulatory Affairs) Shri Amalesh Kumar - Director (Mining) Shri Debkumar Gupta - Director (Finance & Accounts) Shri Soumitra Sankar Sengupta, IAS - Director (Human Resources) Shri Indranil Dutta - Director (Projects) Shri Subhasis Ghosh - Director (Operation & Maintenance) COMPANY SECRETARY Shri Amit Bhattacharyya STATUTORY AUDITORS SRI Associates, Chartered Accountants COST AUDITORS S. S. Sonthalia & Co., Cost Accountants BANKERS State Bank of India Allahabad Bank United Bank of India Indian Overseas Bank HDFC Bank Ltd. Punjab National Bank Canara Bank Corporation Bank ICICI Bank Ltd. POWER STATIONS Registered & Corporate Office Kolkaghat Dist. Purba Medinipur, W.B. 'Bidyut Unnayan Bhaban' 3/C, LA-Block, Sector-Ill, Bidhannagar Bakreswar Dist. Birbhurn, W.B. Klaa-7008(.. Kolkata - 700 098 (W.B.) Bandel Dist. Hooghly, W.B. Santhaldih Dist. Purulia, W.B. & Sagardighi Dist Murshidabad, W.B. 33rd Annual Renort 2017-18 WBPDCL CO."NTENTS Page No. Notice 05-06 Directors' Report 07-28 Secretarial Audit Report 29-31 Financial Highlights 32-35 Independent Auditors' Report 36 - 50 Replies to the Comments of the Statutory Auditors 51 - 54 Comments of the Comptroller and Auditor General 55 - 57 of India and Management's replies their on Balance Sheet as at 31st March, 2018 58-59 Statement of Profit & Loss for the year ended 60 - 61 31st March, 2018 Cash Flow Statement 62 - 63 Statement of Changes in Equity 64-65 Notes to the Financial Statements 66 - 109 Form AOC-1 110 33rd Annual Rponrt 2017-18 WBPDCL THE WEST BENGAL POWER DEVELOPMENT CORPORATION LIMITED (A Government of West Bengol Enterprise) Corporate Identity No.: U40104WB1985SGCO39154 Registered & Corporate Office: 'Bidyut Unnayan Bhaban, Plot No. 3/C, LA-Block, Sector-l1l, Bidhannagar, Kolkata - 700 098 Phone: (033) 2335-0571/2339-3100 *Fax: (033) 2339-3186/2339-3286 Website: www.wbpdcl.co.in - email: wbpdd@wbpdcl.co.in NOTICE Notice is hereby given that the 33rd Annual General Meeting of the West Bengal Power Development Corporation Limited will be held on 28th December, 2018 at 01.30 p.m. at the Registered office of the Company to transact the following businesses:- ORDINARY BUSINESS: Item No.1 To receive, consider, and adopt the audited financial statements of the Company for the financial year ended March 31, 2018 along with the Reports of the Board of Directors and Auditors thereon and Comments of the Comptroller & Auditor General of India, in terms of Section 143 (6) of the Companies Act, 2013. Item No. 2 To authorize Board of Directors of the Company to fix the remuneration of the Statutory Auditor of the Company appointed by the Comptroller & Auditor General of India for the financial year 2017-18 and to pass the following resolution: "RESOLVED THAT the Board of Directors of the Company be and is hereby authorized to decide and fix the remuneration of M/s. SRI Associates, Chartered Accountants, Central Plaza, 41, B. B. Ganguly Street, 3rd Floor, Kolkata - 700012, the Statutory Auditors of the Company appointed by the C & AG of India for the financial year 2018-19, as may be deemed fit by the Board!' SPECIAL BUSINESS: Item No. 3 To consider and if thought fit, to pass with or without modifications, the following: "RESOLVED THAT pursuant to the provisions of Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, the remuneration of Z 2,25,000/- (Rupees Two lakh Twenty-five thousand) only plus applicable taxes and out of pocket expenses of Z 25,000/- (Rupees twenty five thousand) only payable to Cost Auditor M/s S.S. Sonthalia & Co. to conduct the Audit of the Cost Records of the various units of the Company for the financial year 2018-19, as recommended by the Audit Committee and approved by the Board, be and is hereby ratified." "RESOLVED FURTHERTHATthe Board be and is hereby authorized to do all acts and take all such steps as may be necessary, proper or expedient to give effect to this Resolution." Regd. Office: 'Bidyut Unnayan Bhaban' By order of the Board 3/C, Block - LA, Sector Ill, Sd/- Bid hannagar, Kolkata- 700 098 Amit Bhattacharyya Dated: 28th December, 2018. Company Secretary NOTES: 1. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and vote instead of himself. A proxy need not be a member of the Company. 2. An Explanatory Statement pursuant to Section 102(1) of the Companies Act, 2013 in respect of the Special Resolution under item no. 1 is annexed hereto. 3. All the material documents including the Articles of Association of the Company are available for inspection by the members at the Registered/Corporate Office during the office hours and during the continuance of the meeting. 33rd Annual Report 2017-18 5 WBPDCL EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013 IN RESPECT OF ITEMS OF SPECIAL BUSINESS SET OUT IN THE NOTICE CONVENING THE THIRTY-SECOND ANNUAL GENERAL MEETING OF THE COMPANY TO BE HELD ON 28TH DECEMBER 2018 Item no. 3 The Board of Directors of the Company, on the recommendation of its Audit Committee, has approved the appointment and remuneration of M/s S. S. Sonthalia & Co., Cost accountants, as the Cost Auditor to conduct the Audit of Cost Records of various units of the Company for the financial year 2018-19. In accordance with the provisions of Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to Cost Auditor has to be ratified by the shareholders of the Company. Accordingly, consent of the members is sought for passing an Ordinary Resolution for ratification of the remuneration of Z 2,25,000/- (Rupees Two lakh Twenty Five Thousand) only plus applicable taxes and out of pocket expenses of 25,000/- (Rupees Twenty-five thousand) only payable to the Cost auditor for the financial year 2018-19. The Board recommends that the resolution be passed. None of the Directors and Key Managerial Personnel of the Company and their relatives is concerned or interested in the resolution. Regd. Office: By order of the Board 'Bidyut Unnayan Bhaban' 3/C, Block - LA, Sector Ill, Sd/- Bidhannagar, Kolkata- 700 098 Amit Bhattacharyya Company Secretary Dated: 28th December, 2018. 6 33rd Annual Report2017-18 WBPDCL DIRECTORS' REPORT The Directors have pleasure in presenting their report together with the audited accounts for the year ended 31st March, 2018. FINANCIAL RESULTS ( In Crore) Revenue 2017-18 2016-17 Profit After Tax (Z in Crore) Gross Revenue 9277.84 8867.72 90 78 80 - Less: Expenses 70.- Fuel Cost 6517.13 6378.56 60 Employees Benefit expenses 467.18 470 41.08 39.33 R&M Expenses 430.31 439.79 40- Administrative Expenses 89.29 46.9 30 23 21 Interest 989.22 837.45 20- Depreciation 651.93 557.91 10 Total Expenses 9145.06 8730.61 2013-14 2014-15 2015-16 2016-17 2017-18 Profit Before Tax 132.78 137.11 Less: Provision for Taxation 28.34 29.26 Gross Turn Over (Tin Crore) Profit after Tax 104.44 107.85 10000 Other Comprehensive Income -65.11 -66.77 9000 - (net of tax) 8000 7000- Total Comprehensive Income 39.33 41.08 600 Less: Reserve for Unforeseen Exigencies 10.62 10.05 5000 (including interest) 4000- Add: Fair Value adjustment 7.45 3000 2000- Balance Brought forward from last year 1251.73 1213.26 1000 Balance at the end of Financial 1287.89 1251.73 0131 141215120672171 2013-14 2014-15 2015-16 2016-17 2017-18 year ended 31st March REVIEW OF OPERATION Gross Revenue during the year under review is Z 9,277.84 Crore against ! 8,867.72 Crore in the previous year 2016-17. The Company earned profit before Tax of Z 132.78 Crore for the Financial Year 2017-18 as against ? 137.11 Crore last year. The Profit after Tax is ? 104.44 Crore against ! 107.85 Crore in the previous year. Total comprehensive income is Z 39.33 Crore against Z 41.08 Crore in the previous year. The net profit for the year 2017-18 is after consideration of ! 338.37 Crore receivable against claim for Fuel Cost Adjustment and ? 526.32 Crore receivable against claim for Fixed Cost Adjustment as per WBERC regulation. The corresponding expenditure during 2017-18 & 2016-17 are Z 9,145.06 Crore and ? 8,730.61 Crore respectively. During the year under review there were, Six units of 210 MW each at Kolag hat Thermal Power Station, Five Units of 210 MW each at Bakreswar Thermal Power Station, Four Units of 60 MW each and One unit of 215 MW at Bandel Thermal Power Station, Two Units of 250 MW at Santaldih Thermal Power Station and Two Units of 300 MW each and Two units of 500 MW each at Sagardighi Thermal Power Station, were in operation. DIVIDEND No dividend on equity shares has been recommended for the year under review. ENVIRONMENT MANAGEMENT & POLLUTION CONTROL Environment Management and pollution control at all the five power stations is considered to be an integral sector of power generation process and is essential in maintaining a clean environment. The primary objectives are to meet all the statutory 33rd Annual Report 2017-18 7 WBPDCL norms and obligations consistently, to conserve raw materials and natural resources and reduce consumption of electricity. Initiatives taken for improving efficiency of environment management at the power stations are:- Emission Control i) Proper routine and preventive maintenance of Electro Static Precipitators (ESP) are carried out, so that their collection efficiencies are high and resulting reduced emission through the tall flue gas stacks are dispersed effectively. ii) Ammonia dozing systems retrofitted to units of KTPS are functioning. iii) At KTPS complete renovation and modernization of units 1, 2 and 3 ESPs and ash handling systems have been taken up. Work on unit no. 3 and 1 have already commenced, iv) Short term overhaul of ESPs of units 4 and 6 of KTPS have been carried out. Similar overhaul of unit no. 5 ESP to be carried out. v) High efficiency transformers with control systems to be installed for the units 4, 5 & 6 at KTPS and ESP internals to be refurbished with filtering columns. vi) Feasibility study carried out for installation of flue gas desulphurization plants for reduction of SOx emission, at all our power stations. Tender specifications for installation of wet FGDs at SgTPP Units 3 & 4 completed. NIT to be floated. Tender specifications for installation of dry FGD at KTPS being prepared. Effluent Control i) Water conservation and recycling of effluent is carried out at the power stations. Other than BTPS which is equipped with once-through cooling system, cooling towers are installed at all the other four power stations, to conserve water resources but also reduce the quantity of pollutants discharged. ii) Neutralizing pits are installed at all the power stations for proper treatment of DM Plant Effluents. iii) Effluent Recycling:- * BTPS:- Consultant has been engaged for preparing DPR for erection of Cooling Tower and water recycling system. * BkTPS:- Ash water effluent is recycled through the Recovery system. * KTPS:- Process effluent is recycled in ash handling. Ash water overflow after decantation and settlement is released to outside canal which is then used by the nearby villagers in agriculture. * STPS & SgTPP:- Ash water effluent is being recycled. Ash Utilization i) Dry fly ash extraction and collection in silos are installed at all power stations. ii) In accordance with the guidelines of the fly ash utilization notification of MoEF & CC, Govt. of India, the Company's objective is to increase value added utilization of fly ash in making of ash based products like Portland Pozzolana Cement (PPC), Bricks, Blocks and Tiles and also enhance its utilization in construction of roads and highways. iii) At STPS, the bagging units under the silos and Railway siding facility inside the plant are functioning . iv) Installation of a similar facility at SgTPP comprising of bagging units and railway infrastructure have been taken up. Order to be placed after the final agreement with the selected entrepreneur is finalized. v) Installation of two semi-automatic fly ash brick manufacturing machines at SgTPP have been taken up. Machines have been inspected and shall to be delivered shortly. vi) Monthly allotment through MOUs and LOAs of dry ash for making of PPC is around 350000 MT and allotment to brick field owners free of cost is 27362 MT. vii) An Order has been issued by the CMD, WBPDCL to use fly ash bricks for construction of non load bearing structures at all the power stations and townships. viii) Out of around 16325 MT/day of ash generated, 12850 MT is fly ash and rest is bottom ash.Though total ash utilization has increased appreciably due to extensive utilization of pond ash, fly ash utilization in dry form could be increased not very significantly and stands at 50%. Dry fly ash utilization is slated to increase with the introduction of bagging plants at SgTPP and also with commissioning of the ESPs and dry ash handling systems and silos of units 3 & 4 at SgTPP and complete renovation and modernization of KTPS units. 8 33rd Annual Report 2017-18 WBPDCL Ambient Air i) Continuous Ambient Air Quality Monitoring Stations are installed at BkTPS, SgTPP, KTPS and STPS. ii) Ambient air quality at 3 locations in and around the plants' boundary are monitored by WBPCB's accredited agencies at all the power stations. Noise i) Noise level monitoring is carried out at all our power stations with special attention to noise prone areas. ii) Acoustic barriers and Silencers are provided to reduce noise pollution. Green Belt:- Maintenance of green belts and plantation at the power stations and townships are carried out round the year. DEVELOPMENT OF COAL MINING PROJECTS Consequent upon cancellation of Coal Blocks allotted earlier by the Hon'ble Supreme Court, the Ministry of Coal, Government of India has allocated 06 (six) coal mines in favour of the WBPDCL namely (i) Tara (E&W), (ii) Barjore (iii) Gangaramchawk & Gangaramchawk Bhadulia, (iv) Pachhwara (N), (v) Barjora (N) & (vi) Kasta (East). Among the allotted coal mines, 4 mines [{srl.(i) to (iv)} above] were earlier allotted to WBPDCL which have been de-allocated by the Hon'ble Supreme Court and 2 Mines - viz Barjora (N) and Kasta (East) have been allotted afresh to the Company. For operation of the aforesaid newly allotted coal mines, WBPDCL have already selected Mine Developers & Operators (MDOs) following open tendering process for all the allotted mines excepting Kasta (East). Since ownership for the recently allotted mines rests with WBPDCL, all sorts of statutory clearances are required to be obtained afresh by the Company including the 4 mines which were in operation prior to de-allocation as above. Out of five coal mines, at present, mining operation has commenced in one mine - Barjore. In order to commence mining operation at the remaining 04 (four) mines, all out efforts have been undertaken by the Company at appropriate levels and it is expected that mining operation for the said mines will commence early. THE DURGAPUR PROJECTS LIMITED Vide Notification no. 319-PO/O/C-IV/1 E-60/13 (Part-VA) dated 08.12.2017, the Department of Power & NES, Govt. of West Bengal intimated that the State Cabinet in its meeting dated 27.11.2017 has approved the proposal of restructuring of DPL in the manner detailed below: 1. The existing Government Company namely The Durgapur Projects Ltd. (DPL) will continue (by name) as DPL in its restructured form. 2. The Durgapur Projects Limited will be a wholly owned subsidiary company of The West Bengal Power Development Corporation Limited (WBPDCL), a public sector company under Government of West Bengal. 3. Concerted efforts will be made by DPL, WBPDCL, WBSEDCL AND WBSETCL to introduce best practices through technological up gradation, management initiatives, human resources development, optimal asset utilization and financial re-engineering to provide effective and efficient services to DPL consumers. Towards this end, the regular manpower of DPL could be deputed to WBPDCL power plants and vice-versa for optimal utilization of human resources. 4. One Transaction Adviser has been engaged by the Department of Power and NES, Government of West Bengal for implementation of the scheme. OUT OF COURT SETTLEMENT WITH M/S DONGFANG ELECTRIC CROPORATION In the case of WBPDCL-Vs-Dongfang Electric Corporation, award has been passed by ICC (Arbitral Tribunal) on 24,08.2015. As per award, WBPDCL is liable to a payment of ? 223.02 crore plus release of Bank Guarantee of USD13500000 and INR equivalent of Z 24.00 crore held in Allahabad Bank, Stephen's Court Branch, Kolkata pursuant to an order dated 08.03.2011 and modified on 13.04.2011 of the Calcutta High Court plus set off allowed against excess tax reimbursement of ! 1.06 crore (to be considered at the time of reimbursement of tax). WBPDCL filed an appeal before the Hon'ble High Court, Calcutta against the said award on 26.11.2015 under section 34 of the Arbitration and Conciliation Act, 1996. The matter is pending before the Hon'ble High Court for effective hearing. The matter has been settled "out of Court" in the financial year 2018-19. The Company has entered into a Settlement Agreement dated 10th May 2018 with M/s. Dongfang Electric Corporation for resolving the issue out of court. Necessary accounting effect have been given in the FY 2018-19. 33rd Annual Report 2017-18 9 WBPDCL APPOINTMENT OF STATUTORY AUDITORS Being a Government Company, Statutory Auditors are appointed by the Comptroller and Auditor General of India (C&AG), New Delhi. M/s. S RI Associates, Chartered Accountants, Central Plaza, 3rd Floor, 41, B. B. Ganguly Street, Kolkata 700 012 has been appointed by C&AG as the Statutory Auditors of the Company for the financial year 2017-18 for a remuneration of ? 5,00,000/- only plus T.A/D.A. at actual not exceeding ? 75,000/- only and applicable taxes. COST AUDIT As prescribed under the Companies (cost records and audit) Rules, 2014 the Cost Accounting Records are being maintained by all the Power Stations of the Company. The Cost Audit for the year 2017-18 has been completed and the Cost Audit Reports submitted by the Cost Auditors, M/s. S.S. Sonthalia & Co. appointed under Section 148(3) of the Companies Act, 2013. SECRETARIAL AUDIT As required under Section 204 of the Companies Act, 2013 read with Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company appointed M/s. Swarnali Das, Practicing Company Secretary, to conduct Secretarial Audit of the Company. The said report is annexed with the Directors'Report. The Secretarial Audit Report for the financial year ended 31st March, 2018 confirms that the Company has complied with all the applicable provisions of the Companies Act, 2013. The said Secretarial Report of 2018 being the part of Directors report is attached. (Annexure -VI) EXPLANATIONS OR COMMENTS BY THE BOARD ON EVERY QUALIFICATION, ADVERSE REMARK OR DISCLAIMER MADE BY THE AUDITOR IN HIS REPORT. i) Auditors'observations and Company's responses thereto are annexed, which form part of the report. ii) Comments of the Comptroller & Auditor General of India on the Accounts of the Company for the year ended 31t March, 2018 and the Management's replies approved by the Board are annexed thereto. iii) During the course of Secretarial Audit, the minor lapses pointed out by the Secretarial Auditor have been rectified in the books. DIRECTORS' RESPONSIBILITY STATEMENT AS REQUIRED UNDER SECTION 134(3)(c) OF THE COMPANIES ACT, 2013 In terms of the provisions of Section 134(2)(c) of the Companies Act, 2013, the Directors confirm as under: (i) That in preparation of the annual accounts for the year ended 31st March, 2018, the applicable Indian Accounting Standards (IND AS) had been followed along with proper explanation relating to material departures. (ii) That the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs for the Company at the end of the financial year 2017-18 and of the profit of the company for that period. (iii) That the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. (iv) That the directors had prepared the annual accounts for the financial year ended 31st March, 2018 on going concern basis. (v) That the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARN INGS/OUTGO As required under Section 134(3)(m) of the Companies Act, 2013 read with rule 8 of the Companies (Accounts) Rules, 2014 the relevant information pertaining to the conservation of energy, technology absorption and foreign exchange earnings and outgo are set out in Annexure-I to this report. DIRECTORS The following changes have taken place in the Board of Directors of the Company during the F.Y. 2017-18:- APPOINTMENT Shri Indranil Dutta (DIN 07792881) has been appointed as Director (Projects) of the Company with effect from 03.04.2017. 10 33rd Annual Report 2017-18 WBPDCL Shri Rahul Guha (DIN 07801535) has been appointed as Independent Director of the Company with effect from 04.05.2017 Shri Subhasis Ghosh (DIN 06812550) has been appointed as Director (0 & M) of the Company with effect from 01.09.2017 Smt. Smaraki Mahapatra (DIN01 990871) has been appointed as Govt. Nominee Director of the Company with effect from 01.12.2017. Shri Ashim Kumar Maitra (DIN 06835316) has been appointed as Independent Director of the Company with effect from 12.03.2018. Shri SamarJha (DIN 02936104) has been re-appointed as Independent Director of the Company with effect from 12.03.2018. CESSATION Shri K. K. Sharma (DIN 03014947), ceased to be the Independent Director of the Company w.e.f. 31.10.2017. Shri Samar Jha (DIN 02936104), ceased to be the Independent Director of the Company w.e.f. 30.11.2017. The Board of Directors places on record its deep appreciation of the valuable services rendered/advice and guidance provided by Shri K. K. Sharma, Independent Director Director during his tenure as Director of the Company. The Independent Directors of the Company have confirmed that they meet the criteria of independence as prescribed under Section 149(6) of the Companies Act, 2013. NUMBER OF MEETINGS OF THE BOARD During the financial year 2017-18, seven (7) Board meetings of the Company were held on 04.05.2017,04.07.2017, 31.08.2017, 24.11.2017,27.12.2017, 07.02.2018 & on 28.03.2018. CORPORATE GOVERNANCE & MANAGEMENT DISCUSSION & ANALYSIS Report on the Corporate Governance (Annexure-ll) & Management Discussion & Analysis (Annexure-lli) are attached with this Report. WHISTLE BLOWER POLICY Pursuant to Section 177 of the Companies Act, 2013 and the rules made there under, the Board of Directors of the Company in the 171st Board meeting held on 28th November, 2015 has approved the adaptation of Vigil Mechanism/ Whistle Blower Policy of the Company. POLICY & PROCEDURE FOR BLACKLISTING & DEBARMENT OF AGENCIES FROM BUSINESS DEALING The Board of Directors of the Company in the 173rd Board meeting held on 19th March 2016 has approved the policy & procedure for blacklisting & debarment of agencies from business dealings. The said business dealings with the agency may be withheld, for a period not exceeding six months, if the competent authority has sufficient reason to believe that there is serious breach of terms and conditions of the contract on account of reasons attributable to the agency. Any such order withholding business dealings shall be followed by proceedings for blacklisting and debarment under this policy. POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON CORPORATE SOCIAL RESPONSIBILITY INITIATIVES TAKEN DURING THE YEAR 2017-18 In terms of Section 135 (1) of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014, the Board of the Company in the 1 60th Board meeting held on 6th June 2014 has formed a Corporate Social Responsibility Committee. The said Committee vide 2nd meeting dated 19.03.2016 formulated and recommended to the Board, a CSR Policy indicating the activities to be undertaken by the Company as specified in Schedule VII of the Companies Act, 2013.The said Committee recommended the amount of expenditure to be incurred on the CSR activities and monitor the CSR Policy from time to time. The CSR expenditure for the F.Y. 2017-18 was required for Z 128.13 lakhs in terms of section 135 of Companies Act 2013 read with Schedule VII thereof being 2% of average net profit for the preceding three (3) financial years (i.e. 2014-15, 2015-16 & 2016-17). The Company registered an expenditure of Z 193.54 lakhs during the year 2017-18. The manner in which the amount was spent during 2017-18 is detailed in the enclosure in the prescribed format (Annexure-IV). During the financial year 2017-18, three (3) meetings of the CSR Committee have been held on 04.07.2017, 27.12.2017 & 28.03.2018. 33rd Annual Report 2017-18 11 WBPDCL COMPANY'S POLICY ON DIRECTORS'APPOINTMENT AND REMUNERATION INCLUDING CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES, INDEPENDENCE OF A DIRECTOR AND OTHER MATTERS PROVIDED UNDER SUB-SECTION (3) OF SECTION 178 OF COMPANIES ACT, 2013. The Board of Directors, appointed by the Governor of West Bengal, has an appropriate mix of executives represented by Functional Directors and Non-Executive Directors represented by Government nominees and Independent Directors to maintain the independence of the Board and to separate the Board's function of management and control. While functional Directors drawing salary as per pay scale of the Company, non-executive Directors excluding the Govt. nominee Directors were paid sitting fees of Z 10,000/- per Board meeting and Z 10,000/- per Committee meeting. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013. The Company has not granted unsecured loans to the body corporate covered under section 186 of the Companies Act, 2013. PARTICULARS OF CONTRACT OR ARRANGEMENTS WITH RELATED PARTIES REFERRED TO IN SUB- SECTION (1) OF SECTION 188 OF THE COMPANIES ACT, 2013. Form No. AOC-2 [Pursuant to clause (h) of sub section (3) of section 134 of the Act and Rule 8(2) of Company (Accounts) Rules, 2014] (Z in lakhs) Name Relationship Nature of Contracts/ Duration Salient Terms Transaction arrangement of the Contract Value Bengal Emta Coal Joint Venture Supply of coal from the Till 31st March 2015 Supply of coal Nil Mines Ltd. captive coal mines pursuant to order as per allotted to the of Hon'ble agreement Company by Gol Supreme Court Bengal Birbhum Joint Venture N.A. N.A. N.A. 8.00 Coalfields Ltd. IDENTIFICATION, DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY Power is highly regulated sector.This exposes the company to the risks with respect to changes in policies and regulations. Even though the availability of coal has improved, coal quantity continues to be an issue. Unutilized capacity for power generation exposed the Company to risks associated with difficulties in achieving efficiency in performance. DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERNCETOTHE FINANCIAL STATEMENTS The Company has in place, systems of internal control, commensurate with its size and the nature of its operations. It also ensures adherences to regulatory and legal requirements. MANNER IN WHICH FORMAL ANNUAL EVALUATION HAS BEEN MADE BY THE BOARD OF ITS OWN PERFORMANCE AND THAT OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS. The Board of Directors has already adopted a policy in this regard. DETAILS OF KEY MANAGERIAL PERSONNEL AS PER COMPANIES ACT 2013 READ WITH RULE 8(5)(iii) OF THE COMPANIES(ACCOUNTS) RULES, 2014 In terms of applicable provisions of the Companies Act, 2013 and subsequent notification of Ministry of Corporate Affairs, Govt. of India dated 5th June 2015, Director (F & A) and Company Secretary are Key Managerial Personnel. 12 33rd Annual Report 2017-18 WBPDCL PARTICULARS OF EMPLOYEES As required under Section 197 of the Companies Act, 2013 read with sub Rule (2) of Rule 5 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 there are no such employee in the Company who throughout the financial year, was in receipt of remuneration for the F.Y. 2017-18, in aggregate, not less than one crore two lakh rupees and for a part of the financial year, was in receipt of remuneration for any part of that year, at a rate which, in the aggregate, not less than eight lakh fifty thousand rupees per month. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATION IN FUTURE No such order has been received by the Company during the financial year 2016-17. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013. During the year under review, there were no cases filed pursuant to the sexual harassment of women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. EMPLOYER-EMPLOYEE RELATIONSHIP The employer-employee relationship in WBPDCL continues to be cordial. The Company acknowledges the dedication and alertness of the workforce. EXTRACT OF ANNUAL RETURN The Extract of the Annual Return in form no. MGT 9 of the Companies (Management and Administration) Rules, 2014 as provided under sub-section (3) of Section 92 is given in annexure of this report. (Annexure-V) ACKNOWLEDGEMENTS & APPRECIATION The Board of Directors acknowledges with deep appreciation the cooperation received from the Government of West Bengal, particularly the Department of Power & NES, the Government of India, in particular the Ministry of Power, the Ministry of Coal, the Ministry of Railways, West Bengal State Electricity Distribution Co. Ltd., West Bengal State Electricity Transmission Co. Ltd., Suppliers, Bankers and Financial Institutions. The Board acknowledges with thanks the constructive suggestions received from C&AG, the Statutory Auditors & the Cost Auditors. The Board appreciates and value the contributions made by every member of WBPDCL family across the State. On behalf of the Board of Directors Sd/- Sd/- Kolkata (Debkumar Gupta) (Santanu Basu) 28.12.2018 Director-Finance & Accounts Chairman & Managing Director 33rd Annual Report 2017-18 13 WBPDCL ANNEXURE - I to the DIRECTORS' REPORT A. Conservation of Energy 1. Energy conservation measures taken at the power stations of the Company: i) Installation of Silo Ash Bagging System at Santaldih TPS reducing Ash Slurry pumping hours & raw water usage. ii) Replacement of oil burner tips at boiler of Santaldih TPS thus reduction of oil consumption rate by 0.25KL/hr. iii) Installation of Clariflocculator at Bakreswar Stage - 11 for ash water recovery, thereby reducing raw water usage. iv) For cooling of Unit 5 Control Room of Bandel TPS VAM" (Vapor Absorption Mechanism) is being used instead of conventional AC system. v) Replacement of BFP cartridges in phases at Bakreswar TPS & Santaldih TPS which resulted in reduction of current by 10 amps and power by 100 kWh. vi) The Tap changing operation of lighting transformers are done regularly at all power stations for reduction of Auxilliary Power Consumption. vii) Replacement of GRP (Glass Reinforced Plastic) with FRP (Fiber Reinforced Plastic) blades & SS Shaft with Carbon Fiber Shaft in CT fans at Santaldih TPS resulting in reduction of power consumption by 18.7 KW per fan. viii) Hydrophobic corrocoat coating on inner casing and impeller of CW pumps has been done at STPS & KTPS for saving of energy and improvement of impeller life. ix) Stage Withdrawal of CEP of SGTPP benefited 60KWH for each pump. x) Interconnection of feedpool and ACW discharge line of STPS. xi) Installation of LED lamps with timer control. 2. Additional proposal i) Proposal for R & M of Kolaghat TPS Stage - I (Units 1, 2 & 3) for Boiler-Turbine-Generator package to reduce heat rate from existing 2386.57 kcal/kwh to lesser than 2350 kcal/kwh is in tendering stage. ii) Implementation of "Substation Automation System"at Santaldih TPS iii) 100% LED lamps. iv) Optimisation of gear ratio of BFP hydraulic coupling v) Withdrawal of one stage of BFP in SGTPP vi) One Stage withdrawal of CEP in BKTPP and KTPS stg-1 vii) Replacement of conventional drier by Refrigerant drier. B. Foreign Exchange Earnings / Outgo (T in lakhs) Particular 2017-18 2016-17 Spares and other items 1248.01 551.55 Travelling Expenses 4.72 2.34 On behalf of the Board of Directors Sd/- Sd/- Kolkata (Debkumar Gupta) (Santanu Basu) 28.12.2018 Director-Finance & Accounts Chairman & Managing Director 14 33rd Annual Report 2017-18 kVI L) WBPDCL ANNEXURE - II to the DIRECTORS' REPORT Corporate Governance As a Government Company and a good corporate entity, the Company is committed to sound corporate practices based on openness, fairness, professionalism and accountability paving the way to building confidence among the people of the State for achieving sustainable long term growth and profitability. A brief report on Corporate Governance is given below: A. Company's philosophy on code of Corporate Governance Corporate Governance is a continuous journey for sustained value creation and it is an upward moving target. In its pursuit of growth, excellence and commitment to values, corporate governance forms an integral part of the Company's philosophy. The Company is a Non-Listed Government Company. The provisions of Corporate Governance as per Listing Agreement do not apply to the Company. WBPDCL follows the Corporate Governance Voluntary Guidelines-2009 issued by the Ministry of Corporate Affairs, Government of India. The Company is committed to facilitate availability of electricity for accelerated growth and for enrichment of quality of life of the rural and urban population. B. Board of Directors (i) Composition and category of Directors WBPDCL is a Government Company as the entire paid-up Share Capital of the Company is held by the Government of West Bengal. The Board of Directors, appointed by the Governor of West Bengal, has an appropriate mix of executives represented by Functional Directors and Non-Executive Directors represented by Government nominees and Independent Directors to maintain the independence of the Board and to separate the Board functions of management and control. (ii) Non-Executive Director's compensation and Disclosures The Board of Directors in its 150th Meeting held on 28th September, 2012, decided to pay the following sitting fees to Non-Executive /Independent Directors:- (In ?) SI. No. Meeting Amount 1. Board Meetings 10,000 per meeting 2. Committee Meetings 10,000 per meeting (iii) Meetings During the year 2017-18, seven (7) Board Meetings were held on 04.05.2017, 04.07.2017, 31.08.2017, 24.11.2017, 27.12.2017,07.02.2018 & on 28.03.2018.The maximum time gap between two meetings did not exceed one hundred twenty (120) days. The meetings of the Board were held at the Registered Office of the Company and were scheduled well in advance. Notices of each meeting were given in writing to each Director by the Company Secretary in consultation with Chairman and Managing Director. To address specific urgent need, meetings are also being called at a shorter notice. In case of exigencies or urgency, resolutions are passed by circulation. Senior management personnel remained present at the Board Meetings when called for to provide additional inputs on the items considered by the Board at its meetings. The Board agenda is circulated to the Directors in advance. It has always been the Company's policy and practice that apart from matters requiring the Board's approval by statute, all major decisions of the Company as a whole are regularly placed before the Board. 33rd Annual Report 2017-18 15 WBPDCL (iv) Attendance of each Director at the Board Meetings during 2017-18 (1Ist April, 2017 to 31St March, 2018) and the last AGM: No. of Board Meetings Whether attended last Name of the Director Category attended during the AGM held on 27th year 2017-18 December, 2017 Dr. A. N. Biswas Dr A N BswsNon-Executive 7 Yes Govt. Nominee Director Smt. Smaraki Mahapatra Govt. Nominee Director Shri K. K. Sharma Independent 2 Not applicable Shri Samar Jha Independent 3 Not applicable Shri Srikumar Banerjee Independent 7 Yes Shri Rahul Guha Independent 5 Yes Shri Ashim Kumar Maitra Independent 0 Not applicable Shri Santanu Basu Chairman & Managing Director Shri Amit Bhattacharyya Executive 7 Yes Director (Reg. Affairs) Shri Amalesh Kumar Executive 5 No Director (Mining) Shri Debkumar Gupta Executive 7 Yes Director (F & A) Shri S. S. Sengupta Executive 6 Yes Director (HR) Shri Indranil Dutta Executive 6 Yes Director (Projects) Shri Subhasis Ghosh Executive 4 Yes Director (0 & M) None of the Directors is a Member in more than 10 Mandatory Committees or acts as a Chairman in more than 5 Mandatory Committees across all listed Companies in which he is a Director. (v) General Body Meetings: The venue, time and date where the last three Annual General Meetings of the Company were held are given below: Date Venue Time 27.12.2017 Bidyut Unnayan Bhaban, 3/C, LA Block, Sector-ll, Bidhannagar, Kolkata 700 098 1.00 PM. 05.12.2016 Bidyut Unnayan Bhaban, 3/C, LA Block, Sector-Ill, Bidhannagar, Kolkata 700 098 3.30 P.M. 19.12.2015 Bidyut Unnayan Bhaban, 3/C, LA Block, Sector-ll, Bidhannagar, Kolkata 700 098 1.30 PM. C. Committees of the Board of Directors The Board has established the following Committees: - 1) Audit Committee 2) Nomination & Remuneration Committee 3) Contracts/Purchase & Procurement Committee 4) Project Appraisal & Monitoring Committee 5) Operations & Maintenance Practices & Fuel Management Committee 6) Corporate Social Responsibility Committee The Company Secretary acts as the Convener- Secretary to all the Board Committees and CMD shall be the permanent invitee to all the above Board Committees in which he is not a member. 1) Audit Committee The Board in the 187th meeting held on 7th February 2018 reconstituted Audit Committee as per provisions of the Companies Act, 2013. The Committee comprised of four non-executive Directors, two of whom, including the Chairman of the Committee were Independent Directors. Shri Srikumar Banerjee is the Chairman of the Committee. Other Members are Dr. A. N. Biswas, Shri Rahul Guha & Smt. Smaraki Mahapatra. All the members of the Committee have accounting and financial management expertise. 16 33rd Annual Report 2017-18 WBPDCL The Chairman & Managing Director and Director (Finance & Accounts) are permanent invitees in all the meetings of the Committee. Statutory Auditors & Cost Auditors of the Company are invited to the Audit Committee meetings. The Audit Committee, inter alia, provides reassurance to the Board on the existence of an effective internal control environment that ensures:- * efficiency of operations, * safeguarding the assets and adequacy of provisions of all liabilities in compliance with all relevant statues, * dependability of financial and other management information and adequacy of disclosures, " compliance with all pertinent statues. The Audit Committee is empowered, inter alia, to review the function of Audit and to review the effectiveness of internal control system. The Audit Committee provides direction to the Audit function and monitors the quality of Internal and Statutory Audit. The Committee, appointed and empowered by the Board will comprise at least two Independent Directors. The composition of the committee will be such that Independent Directors form the majority. The responsibility of the Audit Committee includes: * Overseeing the financial reporting process to ensure fairness, transparency, sufficiency and reliability of financial statements, including recognition, recording and reporting of financial information in keeping with the Electricity Act 2003 and the Regu ations of the West Bengal Electricity Regulatory Commission; * Reviewing the adequacy of internal control systems; * Recommending appointment & removal of In-house Internal Auditor and outsourced Internal Auditors for the Company's overall operations and its auditable units. Fixing remuneration of Auditors and approval of payment to Statutory Auditors or to Outsourced Internal Auditors for other services rendered by them; * Discussing scope of audit and audit plans on a regular basis with Statutory and Internal Auditors; * Monitoring and reviewing the direction and quality of Internal and Statutory Audit; * Reviewing with the Management, Periodical, Quarterly and Annual Financial Statements, before submission of the same to the Board. This includes: 1. Any changes in accounting policies and practices, 2. Major accounting entries based on exercise of judgment by the management, 3. Qualification, if any, in the draft audit report, 4. Significant adjustments arising out of audit observations, 5. Compliance with applicable accounting standards, 6. Related party transaction. * Reviewing the efficacy of the Risk management framework and monitoring regulatory compliances pertaining to fiscal, environmental, safety, labour Laws and procedures, other applicable laws and regulations laid down by the Management; * Reviewing the security and control aspects of the Information Technology and Connectivity systems; * Reviewing compliance with Internal and Statutory Audit Reports and examining reasons for substantial defaults and delays in implementing audit recommendations; * Reviewing findings of internal investigations involving matters of fraud, financial integrity and fiduciary compliance; * Reviewing legal cases; * Reviewing Management Letters issued by Statutory Auditors; * Reviewing Secretarial Audit Reports yearly; * Reviewing half yearly legal compliance Audit Reports; * Appointing, deciding remuneration of and reviewing report of Cost Auditors; * The Audit Committee is empowered to call any employee of the company to attend and appear before its meeting; The Audit Committee is empowered to appoint professional public accounting and/other professionals including independent counsel in order to discharge its responsibilities. Compensation to be paid for such services will be determined by the Committee. The Audit Committee is authorized to hold its meeting without the presence of any member of the management and it may require any member of the organization to appear and attend before it. 33rd Annual Report 2017-18 17 VWRHPDC L Table-1 Meetings of the Audit Committee during the year: 31.08.2017, 24.11.2017 & 27.12.2017 Name of the Director No. of meeting held No. of meetings during the year attended Shri Samar Jha (upto 30.11.2017) 2 1 Dr. A. N. Biswas, ]AS 3 3 Shri K. K. Sharma 1 0 Shri Srikumar Banerjee 3 3 Shri Rahul Guha 2 2 2) Nomination & Remuneration Committee The Nomination & Remuneration Committee looks after all aspects of Human Resource Development and Remuneration on behalf of and with the approval of the Company's Board of Directors. Board in the 187th meeting held on 7th February 2018 reconstituted Nomination & Remuneration Committee as per provisions of the Companies Act, 2013. As on 31.03.2018, the reconstituted Committee comprised of two Non-Executive Directors and three Executive Directors. Shri Rahul Guha, Non-Executive and Independent Director is the Chairman of the Committee. Other Members of the Committee are Dr. A. N. Biswas, Shri Santanu Basu, Shri Debkumar Gupta & Shri S. S. Sengupta Table-2 Meetings of the Nomination & Remuneration Committee during the year:- 04.07.2017,31.08.2017 & 27.12.2017 Name of the Director No. of meeting held No. of meetings during the year attended Shri Samar Jha (upto 30.11.2017) 2 1 Shri Santanu Basu, IAS 3 3 Dr. A. N. Biswas. IAS 3 3 Shri Debkumar Gupta 3 3 Shri S. S. Sengupta 3 3 3) Contracts! Purchase & Procurement Committee The Contracts/Purchase & Procurement Committee approves award of contracts for procurement of works, goods & services for the Company for projects & O&M requirements. As on 31.03.2018, the Committee comprised of three non-executive Directors one of whom is the Chairman of the Committee and an Independent Director. Shri Rahul Guha (Chairman of the Committee), Shri Srikumar Banerjee, Dr. A. N. Biswas, Shri Santanu Basu, Shri Debkumar Gupta, Shri Subhasis Ghosh & Shri Indranil Dutta were the Members of the Committee. Table-3 Meeting of the Contracts/Purchase & Procurement Committee during the year:-02.06.2017, 17.08.2017,24.11.2017 & 28.03.2018 Name of the Director No. of meeting held No. of meetings during the year attended Dr. A. N. Biswas, lAS 4 3 Shri Santanu Basu, IAS 4 4 Shri Debkumar Gupta 4 4 Shri Rahul Guha 3 3 Shri Srikumar Banerjee 1 1 Shri Subhasis Ghosh 1 1 Shri Indranil Dutta 1 1 18 33rd Annual Report 2017-18 kVI L) WBPDCL 4) Project Appraisal and Monitoring Committee The Project Appraisal and Monitoring Committee examine Feasibility Reports/Detailed Project Reports relating to new projects/renovation & modernization/ augmentation projects/capital additions in any existing facilities or of any project undertaken as per directions of the GoWB and makes recommendations to the Board. As on 31.03.2018, the Committee comprised of two Non-Executive Directors and three Executive Director. Shri Srikumar Banerjee, an Independent Director is the Chairman of the Committee. Other members of the Committee are Smt. Smaraki Mahapatra, Shri Santanu Basu, Shri Debkumar Gupta & Shri Indranil Dutta. Table-4 Meeting of the Project Appraisal and Monitoring Committee during the year: 07.02.2018 . No. of meeting held No. of meetings during the year attended Shri Srikumar Banerjee 1 1 Shri Rahul Guha 1 1 Shri Santanu Basu, IAS 1 1 Shri Debkumar Gupta 1 1 Shri Indranil Dutta 1 1 5) Operations & Maintenance Practices and Fuel Management Committee The Operations & Maintenance Practices and Fuel Management Committee advises on various technical issues, issues of operation & maintenance and issues relating to procurement of fuel, settlement of disputes with the Coal Companies & other related parties. As on 31.03.2018, the reconstituted Committee comprised of two (2) non-executive Directors and three (3) Executive Directors. Shri Rahul Guha, an Independent Director is the Chairman of the Committee. Other members of the Committee are Dr. A. N. Biswas, Shri Santanu Basu, Shri Amalesh Kumar & Shri Subhasis Ghosh. Table-5 Meeting of the Operations & Maintenance Practices and Fuel Management Committee during the year:- 07.02.2018 Name of the Director No. of meeting held No. of meetings during the year attended Shri Rahul Guha 1 1 Shri Santanu Basu, IAS 1 1 Shri Amalesh Kumar 1 1 Shri Indranil Dutta 1 1 33rd Annual Report 2017-18 19 WBPDCL 6) Corporate Social Responsibility Committee In terms of Section 135 (1) of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014, the Board of WBPDCL in the 160th Board meeting held on 7th February 2018 has formed a Corporate Social Responsibility Committee. As on 31.03.2018, the reconstituted Committee comprised of three (3) Non-Executive Directors and two (2) Executive Directors. The Chairman of the Committee is Smt. Smaraki Mahapatra, an Independent Director. Other Members of the Committee are Shri Srikumar Banerjee, Shri Rahul Guba, Shri Santanu Basu, IAS and Shri S. S. Sengupta. The said Committee formulated and recommended to the Board, the activities to be undertaken by the Company as specified in Schedule VII of the Companies Act, 2013.The said Committee recommended the amount of expenditure incurred on the CSR activities and shall monitor the CSR Policy from time to time. Table-6 Meeting of the Corporate Social Responsibility Committee during the year:- 04.07.2017, 27.12.2017 & 28.03.2018 Name of the Director No. of meeting held No. of meetings during the year attended Smt. Smaraki Mahapatra 1 1 Shri Srikumar Banerjee 1 1 Shri Rahul Guba 2 2 Shri Samar Jha (upto 30.11.2017) 1 1 Shri Santanu Basu, IAS 3 3 Shri S. S. Sengupta 3 3 7) Meeting of the Independent Directors As required under Schedule IV of Code of Independent Directors under Section 149(8) of Companies Act, 2013, a meeting of the Independent Directors was held on 28.03.2018 at the Registered Office of the Company under the Chairmanship of Shri Samar Jha. All the Independent Directors attended the said meeting. On behalf of the Board of Directors Sd/- Sd/- Kolkata (Debkumar Gupta) (Santanu Basu) 28.12.2018 Director-Finance & Accounts Chairman & Managing Director 20 33rd Annual Report 2017-18 WBPDCL ANNEXURE - III to the Directors' Report MANAGEMENT DISCUSSION AND ANALYSIS The West Bengal Power Development Corporation Limited, registered in 1985 is a fully owned Government of West Bengal Enterprise. WBPDCL is a Generating Company as defined under Section 2(28) of the Electricity Act, 2003. WBPDCL meets nearly 56% of total power requirement of the State of West Bengal. WBPDCL generates electricity from its five Thermal Power Stations located in five districts in West Bengal at Kolaghat, Bakreswar, Bandel, Santaldih and Sagardighi with a total installed capacity of 4745 MW. Industry Scenario & Developments Indian economy slowed down slightly during the financial year 2017-18 as its GDP growth rate dropped to 6.7 percent compared to 7.1 percent in the previous year. Electricity consumption is one of the important parameters which indicate the development of a nation. However, in India, about one fifth of the population is estimated to have no access to power and keeping this in mind the Government introduced "Saubhagya and "Deendayal Upadhyaya Gram Jyoti Yojana", Integrated Power Development Scheme to provide 24x7 power for all. On the other hand, the Government is also working on Energy Conservation through the National LED programme and Street lighting National Programme. India's power sector is rapidly transforming with renewable energy assuming a greater emphasis in the overall energy mix of India. Schemes like "Aloshree" has been introduced by the Government of West Bengal for Solar Rooftop in important Government Buildings and schools. Separate schemes have been taken up for energizing low voltage power pockets & underground cable systems. Electricity, water supply, gas and other utilities have registered a growth rate of 7.2 percent at constant prices in the financial year 2017-18. Major power sector reforms during the year focused on facilitating growth of renewable energy capacity addition. Opportunities, Threats, Risks & Concerns: Opportunities: The country continued to add generation capacities in FY 2017-18 and thus reached -344 GW as on 31st March, 2018 from -143 GW as on 31st March, 2008. The source wise breakup of installed capacity shows a major shift in renewable capacity as on 31st March, 2018 as compared to 31st March, 2008. Coal-powered thermal power plants account for -73% of total electricity generated in the country and represents -58% of the installed power capacity. According to International Energy Agency, India's power generation from coal sources will rise ~4% every year up to 2022. Following a meagre demand growth, there was a marginal improvement in the all India thermal Plant Load Factor (PLF) to -60.70% for coal and 22.86% for gas as against -59.93% and 22.51% respectively in the previous year. Threats, Risks & Concerns: The Govt.'s continued thrust on renewable energy will add huge new wind and solar power capacities and provide sustainable and cheaper power to customers, but in the process change the dynamics in generation segment and bring new challenges in transmission & distribution segment. With the increasing adoption of renewable power and growing preference for competitively bid merchant contracts, the conventional power industry is facing difficulties in signing long term Power Purchase Agreements (PPAs). India has an ambitious plan to double its coal production to 1.5 billion tonnes a year by 2020, as part of government's push to bring power to 300 million people who lack proper access to electricity. Under the new policy 'Scheme to Harness and Allocate Koyla (coal) Transparently in India (SHAKTI), Coal India Limited (CIL) will have to increase coal supply to meet 90% of plants' requirement. In the biggest coal sector reform in over four decades, the government allowed the private sector to mine coal and sell it for commercial use, ending state-owned CIL's monopoly in a bid to cut imports by raising domestic output. Participation of private miners would foster the much-needed competition and enhance productivity by facilitating use of latest equipment, technology and services. Coal imports for the FY 2017-18 grew by 8.1% to -213 MT on account of increased demand from Steel, Power and Cement sectors.This trend is likely to continue with limitations on domestic coal evacuation due to shortage of railway rakes. Despite having stranded and under-utilized gas based capacity of -25,000 MW, India's commitment on emission reductions under the Paris climate agreement has added a new urgency to promote usage of natural gas. Government plans to increase share of gas in the energy basket from 6.5% in 2015 to 20% by 2025. Increasing focus on expansion of gas pipeline infrastructure in the country, rising demand for natural gas from power and industrial sectors and favorable government policies would make LNG a commercially viable and suitable fuel for various end users in India. Gas-based power projects are second only to renewable and hydro power in generating clean energy. Hence, ensuring fuel supplies for such projects will go a long way in meeting India's obligations under the climate change commitments and reduce greenhouse emissions substantially. 33rd Annual Report 2017-18 21 V, K L WBLPDCL Future Outlook As a State owned Utility, the Company's priority is to provide cheaper power and support for the State's economy. The Company continues to focus on scaling up generating capacity by installing one unit with supercritical technology of 660 MW capacity at Sagardighi. The Company is also continuing its focus on efficiently running its installed capacity. Critical remedial measures for reduction of SPM, Sulphur and Nitrogen Oxides etc. from the gas has been taken up for a cleaner environment for all. The Company strives to achieve a prudent mix of coal based thermal and renewable energy as part of its Renewable Generation Obligation (RGO). Development of the newly allotted coal mines in an accelerated yet safe manner is also a focus area as coal produced from these captive mines will give the Company leverage in fuel cost. Internal Control Systems and their adequacy The Company has in place, systems of internal control, commensurate with its size and the nature of its operations. It also ensures adherence to regulatory and legal requirements. Financial Performance Gross Revenue during the year under review is Z 9,277.84 Crore against Z 8,867.72 Crore in the previous year 2016-17. The Company earned profit before Tax of Z 132.78 Crore for the Financial Year 2017-18 as against 7 137.11 Crore last year. The Profit after Tax is ? 104.44 Crore against Z 107.85 Crore in the previous year. Total comprehensive income is Z 39.33 Crore against Z 41.08 Crore in the previous year. The net profit for the year 2017-18 is after consideration of Z 338.37 Crore receivable against claim for Fuel Cost Adjustment and Z 526.32 Crore receivable against claim for Fixed Cost Adjustment as per WBERC regulation. The corresponding expenditure during 2017-18 & 2016-17 are Z 9,145.06 Crore and 7 8,730.61 Crore respectively. Industrial Relations Industrial relations during the year continued to be congenial. Cautionary Statement The Statements in the Management Discussion and Analysis and in the Directors'Report may be considered'forward looking statements'within the meaning of applicable laws and regulations, have been based upon current expectations and projections about future events. Actual results may vary materially from those expressed or implied by the'forward looking statements' due to risks or uncertainties associated therewith depending upon economic conditions, Government policies and other incidental factors. On behalf of the Board of Directors Sd/- Sd/- Kolkata (Debkumar Gupta) (Santanu Basu) 28.12.2018 Director-Finance & Accounts Chairman & Managing Director 22 33rd Annual Report 2017-18 WBPDCL (ANNEXURE - IV) TO THE DIRECTORS' REPORT CORPORATE SOCIAL RESPONSIBILITY OF THE WBPDCL FOR 2017-2018 (t in lakhs) SI. CSR project or Sector in which Projects or programs Amount spent on Cumulative Amount No. activity identified the (1) Local area or the projects or expenditure Spent: Project is other (2) Specify the programs upto the direct or through covered State and district Subheads: (1) Direct reporting implementing where projects or Expenditure on Period agency programs projects or undertaken programs (2) Overheads 1 Construction of Boundary Schedule-VII(x) - Suri-I, Birbhum, 9.00 9.00 Executive Officer Wall & Con. Road Rural development West Bengal Suri-I Panchayet projects Samity 2 Construction of Drain under Schedule-Vil (x)- Suri-I, Birbhum, 19.00 28.00 Executive Officer CSR project Rural development West Bengal Suri-I Panchayat projects Samity 3 Construction of Boundary Schedule-VIl (x)- Suri-I, Birbhum, 6.00 34.00 Executive Officer Wall Rural development West Bengal Suri-I Panchayat projects Samity 4 Implementation of Fly Ash Schedule-ViI (l)- Bagnan-ll, 10.00 44.00 West Bengal State Brick Project under WBSRLM Livelihood Howrah, Rural Livelihood (West Bengal State Rural enhancement West Bengal Mission Livelihood Mission) projects 5 Laying of pipeline (tapped at Schedule-VII (I)- Bogra Gram, 2.43 46.43 G.D.S. location near plant main gate Making available Purulia, Construction from 300 mm dia. water safe drinking water West Bengal supply pipeline of STPS township) to 6 Patch repaining of Schedule-VI (x)- Purulia, 14.31 60.73 Pancon bituminous road from Rural development West Bengal paharigorah to gate no.1 of projects STPS(T) with construction of drain on either side of the road at Shyampur more 7 Construction of rigid Schedule-ViI (x)- Mecheda, 50.00 110.73 Haldia Pavement including RCC Box, Rural development Purba Medinipur, Development Culvert for the road from projects West Bengal Authority Mecheda Bus Stand to NH-41 8 First installment for Bathing Schedule-Vil (x)- Hooghly, 9.00 119.73 Hooghly Zila ghat Rural development West Bengal Parishad projects 9 Construction of rigid Schedule-Vl (x)- Mecheda, 50.00 169.73 Haldia Pavement including RCC Box, Rural development Purba Medinipur, Development Culvert for the road from projects West Bengal Authority Mecheda Bus Stand to NH-41 10 Distribution of Mosquito Schedule-Vil (Ill)- Purba Medinipur, 10.00 179.73 District amongst Scheduled Tribe Measures for West Bengal Magistrate, Purba families reducing inequality Medinipur faced by socially and economically backward groups 11 Installation of 4 numbers Schedule-VlI (1)- Birbhum, 1.89 181.62 Executive Officer of deep Tubewells Making available West Bengal Suri- Panchyet safe drinking water Samity 12 Construction of Library& Schedule-Vil (1l)- Sagardighi Block, 11.92 193.54 Block Room at Monigram high Promoting Murshidabad, Development school education West Bengal Officer-Sagardighi TOTAL 193.54 33rd Annual Report 2017-18 23 WBPDCL ANNEXURE - V to the Directors' Report FORM NO. MGT 9 EXTRACT OF ANNUAL RETURN As on financial year ended on 31.03.2018 Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration) Rules, 2014 1. REGISTRATION & OTHER DETAILS: 1. CIN U40104WBl 985SGCO39154 2. Registration Date 05.07.1985 3. Name of the Company The West Bengal Power Development Corporation Limited 4. Category/Sub-category of the Company Public Company / Govt. Company 5. Address of the Registered office & contact details 'Bidyut Unnayan Bhaban, 3/C, LA Block, Sector Ill, Bidhannagar, Kolkata - 700098 Ph: 033 2335 0571 6. Whether listed company No. 7. Name, Address & contact details of the Registrar N.A. &Transfer Agent, if any II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (All the business activities contributing 10% or more of the total turnover of the company shall be stated) S. No. Name and Description of main NIC Code of the Product/service % to total turnover of the products / services Company 1. Generation of Power 35102 100% III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES - All the business activities contributing 10% or more of the total turnover of the company shall be stated:- S. No. Name and Description of main NIC Code of the % to total turnover of products / services Product/service the Company 1. Bengal Emta Coal Mines Ltd. 05101 Not applicable 2. West Bengal Green Energy Development Corporation Ltd. - Not applicable 3. Bengal Birbhum Coalfields Ltd. Not applicable 24 33rd Annual Report 2017-18 VVBPDCL IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) A) Category-wise Share Holding No. of Shares held at the beginning of No. of Shares held at the end of the Category of the year [As on 31s March, 20171 year [As on 31st March, 2018] % Change Shareholders during Derat Physical Total %ofTotal Demat Physical Total %of Total theyear Shares Shares A. Promoter s (1) Indian a) Individual/ HUF b) Central Govt c) State Govt(s) - 6,19,86,455 6,19,86,455 100% - 6,81,75,355 6,81,75,355 100% 9.98 d) Bodies Corp. e)Banks/F1 flAny other Total shareholding - 6,19,86,455 6,19,86,455 100% - 6,81,75,355 6,81,75,355 100% 9.98 of Promoter (A) B. Public Shareholding 1. Institutions a) Mutual Funds b) Banks / Fl c) Central Govt d) State Govt(s) e) Venture Capital Funds f) Insurance Companies g) Fits h) Foreign Venture Capital Funds i) Others (specify) Sub-total (B)(1):- 2. Non-Institutions a) Bodies Corp. i Indian ii) Overseas b) Individuals i) Individual shareholders holding nominal share capital up to ? 1 lakh ii) Individual shareholders holding nominal share capital in excess of 1 lakh c) Others (specify) Non Resident Indians Overseas Corporate Bodies Foreign Nationals Clearing Members Trusts Foreign Bodies - DR Sub-total (B)(2):- Total Public Shareholding (B)=(I3)(1)+ (B)(2) C. Shares held by Custodian for GDRs & ADRs Grand Total (A+B+C 6,19,86,455 6,19,86,455 100% 6,81,75,355 6,81,75,355 100% 9.98 33rd Annual Report 2017-18 25 WBPDCL B) Shareholding of Promoter - Shareholding at the beginning Shareholding at the end of the year of the year % of total % of Shares % of total % of Shares % Change in . Shareholders Name No.of Shares of the Pledged/ No. of Shares of the Pledged/ dsuringe yr Shares Company encumbered to Shares Company encumbered to total shares total shares 1. Govt. of West Bengal 6,19,86,445 99.99% - 6,81,75,355 99.99% - 9.98 C) Change in Promoters'Shareholding (please specify, if there is no change) Shareholding at the beginning Cumulative Shareholding SI. of the year during the year o. N Particularss % of total shares % of total shares No. of shares oftecmay No. of shares o h opn of the company of the company 1 At the beginning of the year 6,19,86,445 99.99% 6,19,86,345 99.99% 2 Date wise Increase / Decrease in Promoters Shareholding during the year specifying the reasons 61,88,900 6,18,8,900 for increase / decrease (e.g. allotment /transfer / bonus/ sweat equity etc.): 3 At the end of the year 6,81,75,355 99.99 6,81,75,355 99.99 D) Shareholding Pattern of top ten Shareholders: (Other than Directors, Promoters and Holders of GDRs and ADRs): SI. For Each of the Top Shareholding at the beginning Cumulative Shareholding No. 10 Shareholders of the year during the year No. of shares %of total shares No. of shares % of total shares of the company of the company 1 At the beginning of the year Nil Nil Nil Nil 2 Date wise Increase / Decrease in Promoters Shareholding during the year specifying the Nil Nil Nil Nil reasons for increase /decrease (e.g. allotment / transfer / bonus/ sweat equity etc): 3 At the end of the year Nil Nil Nil Nil E) Shareholding of Directors and Key Managerial Personnel: Shareholding at the beginning Cumulative Shareholding SI. Shareholding of each of the year during the year No. Directors and each Key Managerial Personnel No. of shares %of total shares No. of shares % of total shares of the company of the company A) Directors (Govt. nominees): 1. Dr. A. N. Biswas, [AS - 2. Smt. Saswati Banerjee, lAS 02 0.000003 02 0.000003 3. Shri Santanu Basu, IAS 02 0.000003 02 0.000003 B) KMP Nil Nil Nil Nil 26 33rd Annual Report 2017-18 kVI L) VVBPDCL V. INDEBTEDNESS -Indebtedness of the Company including interest outstanding/accrued but not due for payment. (T in Lakh) Secured Loans Unsecured Total excluding Loans Deposits Indebtedness deposits Indebtedness at the beginning of the financial year i) Principal Amount 7,47,503.82 56,782.27 8,04,286.09 ii) Interest due but not paid 322.03 30,400.15 30,722.18 iii) Interest accrued but not due 12,583.13 731.58 13,314.71 Total (i+ii+iii) 7,60,408.98 87,914.00 8,48,322.98 Change in Indebtedness during the financial year * Addition * Reduction 58,459.87 40,505.69 98,965.56 Net Change 58,459.87 40,505.69 98,965.56 Indebtedness at the end of the financial year i) Principal Amount 6,89,739.82 46,111.97 7,35,851.79 ii) Interest due but not paid 258.41 - 258.41 iii) Interest accrued but not due 11,950.88 1,296.34 13,247.22 Total (i+ii+iii) 7,01,949.11 47,408.31 7,49,357.42 VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL- A. Remuneration to Managing Director, Whole-time Directors and/or Manager: Name of MD / WTD / Manager SI. Particulars of Total No. remuneration Shri Santanu Shri Amit Shri Amalesh Shri Debkumar Shri S.S. Shri Indranil Shri Subhasis Amount Basu, (MD Bhattacharyya, Kumar Gupta Gupta Sengupta Dutta Ghosh Dir (RA) Dir (F&A) Dir (F&A) Dir (HR) Dir (Proj.) Dir (0&M) 1 Gross salary 19,78,746 16,60,144 18,03,298 23,80,596 19,08,524 28,59,360 11,46,900 1,37,37,568 (a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 (c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961 2 Stock Option 3 Sweat Equity 4 (ommission - as% of profit 5 Others, pl specify TOTAL (A) 19,78,746 16,60,144 18,03,298 23,80,596 19,08,524 28,59,360 11,46,900 1,37,37,568 Ceiling as per the Act 33rd Annual Report 2017-18 27 WRDL B) Remuneration to other Directors () SI. Particulars of Remuneration Name of Director Total No. Amount Shri Samar Shri K. K. Shri Srikumar Shri Rahul Shri Asim Kr Jha Sharma Banerjee Guba Maitra Fee for attending board 70,500 - 1,53,100 2,00,000 - 4,23,600 committee meetings Commission Others, please specify Total (1) 2 Other Non-Executive Directors - - - - - Fee for attending board - - - - committee meetings Commission - - - - Others, please specify - - - Total (2) - - - - - Total (B)=(1+2) 70,500 - 1,53,100 2,00,000 - 4,23,600 Total Managerial Remuneration Overall Ceiling as per the Act C) Remuneration to key Managerial personnel other than MD/MANAGER/WTD (T) SI. .KyMngra esne No. Particulars of Remuneration Key Managerial Personnel CEO CS CFO Total 1 Gross salary 16,60,144 23,80,596 40,40,740 (a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - - - (c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 2 Stock Option 3 Sweat Equity 4 Commission - as% of profit others, specify... 5 Others, please specify _ - Total 16,60,144 23,80,596 40,40,740 VII. Penalties / Punishment / Compounding of Offences Type Section of the Brief Details of Penalty / Punishment / Authority [RD/N{LT Appeal made, if Companies Act Description compounding fees imposed /court] any (given Details) A. COMPANY Penalty Ni Punishment Nil Compounding Nil B. DIRECTORS Penalty Nil Punishment Nil Compounding Nil C. OTHER OFFICERS IN DEFAULT Penalty Nil Punishment Nil Compounding Nil 28 33rd Annual Report 2017-18 WBPDCL Form No. MR -3 SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED ON THE 31ST DAY OF MARCH'2018 [Pursuant to section 204 (1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014] To The Members, The West Bengal Power Development Corporation Limited, Bidyut Unnayan Bhaban, Plot No- 3/C, LA-Block, Sector-III, Salt Lake, Kolkata- 700098 We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by THE WEST BENGAL POWER DEVELOPMENT CORPORATION LIMITED (hereinafter referred to as the 'Company'). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon. The Company's Management is responsible for preparation and maintenance of Secretarial records and for devising proper system to ensure compliance with the provisions of applicable laws and regulations. Our responsibility is to express an opinion on the Secretarial records, standards and procedure followed by the Company with respect to secretarial compliances. We believe that audit evidence and information obtained from the company's management is adequate and appropriate for us to provide a basis for our opinion. Based on our verification of the Company's books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agent and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on the 315t Day of March'2018 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter: We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on the 31st Day of March'2018 according to the provisions of: I. The Companies Act. 2013 and the Rules made there under, 2. The Factories Act. 1948, 3. Payment of Wages Act. 1935, 4. Employees Compensation Act.1 923 and Rules made there under (Workmen's Compensation Act. 1923.), 5. Supreme Court Guidelines of Prevention of Sexual Harassment, 6. Electricity Act. 2003 and Rules made there under & National Tariff Policy, 7. Mines and Mineral (Regulation and Development) Act. 1957, 8. The Air (Prevention and Control of Pollution) Act, 1981 and Rules made there Under, 9. The Water Act.1 974, and The Water (Prevention & Control of Pollution) Cess Act. 1977, 10. The Explosive Act. 1884 and Rules made there under, 11. The Payment of Gratuity Act. 1972, 12. The Payment of Bonus Act. 1965, 13. The Employees Provident Fund & Miscellaneous Provisions Act. 1952, 14. The Income tax Act. 1961 & other IndirectTax Laws (GST etc.), 15. Environment Protection Act. 1986 and other Environmental Laws 33rd Annual Report 2017-18 29 WBPDCL We have also examined compliance with applicable clauses of the Secretarial Standards issued by The Institute of Company Secretaries of India with respect to Board Meeting (SS-1) and General Meeting (55-2). During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above subject to the following observations: i) Some of the E-Forms were filed belatedly with the MCA, however the same have been filed within the time allowed U/S 403 of the Companies Act. 2013. ii) As per the Audit Report the ongoing cases for the ESI Act, Employees State Insurance Act, Workmen's Compensation Act, & Income Tax act lying with the Calcutta H.C, Workmen's Compensation Court And Appellate Tribunal and other relevant forums and a few arbitrary matters are still lying with the Statutary Bodies; as well there are disputed statutory dues with the Statutory Bodies on account of the relevant matters. WE FURTHER REPORT THAT AS FAR AS WE ARE ABLE TO ASCERTAIN: The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act. Adequate notice is given to all Directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting. Majority decisions are carried out while the dissenting members'views are captured and recorded as part of the minutes. We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. It is stated that the compliance of all the applicable provisions of the Companies Act, 2013 and other laws is the responsibility of the management. We have relied on the representation made by the Company and its officers for systems and mechanism set-up by the Company for compliances under applicable laws. Our examination on a test-check basis was limited to the procedure followed by the Company for ensuring the compliance with the said provisions. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted its affairs. We further state that this is neither an audit nor an expression of opinion on the financial activities/statements of the Company. Moreover we have not covered any matter related to any other laws, other than those mentioned in the report which may be applicable to the Company, except, the aforementioned corporate and other laws of the Union of India. This report is to be read with our letter of even date which is annexed as Annexure & form an integral part of this report. For, Swarnali Das & Co. Company Secretaries Sd/- (Swarnali Das) Place: Kolkata COP. No: - 11334 Date: 14.11.2018 Membership No: - FCS 9804 30 33rd Annual Report 2017-18 WBPDCL ANNEXURE TO THE SECRETARIAL AUDIT REPORT OF THE WEST BENGAL POWER DEVELOPMENT CORPORATION LIMITED, FOR THE FINANCIALYEAR ENDED 31.03.2018. To, The Members, The West Bengal Power Development Corporation Limited, Bidyut Unnayan Bhaban, Plot No- 3/C, LA-Block, Sector-Ill, Salt Lake, Kolkata- 700098 Our report of even date is to be read along with this letter. 1. Maintenance of Secretarial records is the responsibility of the Management of the Company. Our responsibility is to express an opinion on these Secretarial Records based on our Audits. 2. We have followed the audit practices and processes as we were appropriate to obtain reasonable assurance about the fairness of the contents of the secretarial records. The verification was done on test basis to ensure that the facts are reflected in secretarial records. We believe that the processes and practices we followed provide a reasonable basis for our opinion. 3. We have not verified the correctness of Financial Records and Books of Accounts of the Company. 4. Wherever required,we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc. S. The compliance of the provisions and other applicable laws, rules, regulations, standards, is the responsibility of the Management. Our examination was limited to the verification of procedure on test basis to the extent applicable to the Company. 6. The Secretarial Audit Report is neither an assurance to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company. For, Swarnali Das & Co. Company Secretaries Sd/- (Swarnali Das) Place: Kolkata COP. No: - 11334 Date: 14.11.2018 Membership No:- FCS 9804 33rd Annual Report 2017-18 31 WBPDCL FINANCIAL HIGHLIGHTS FIVE YEARS AT A GLANCE: 2013-14 TO 2017-18 5.N Particulars 2017-18 2016-17 2015-16 2014-15 2013-14 A Generation(MU) 23,445.639 23,423.923 19,962.984 23,853.386 20,769.425 B Operating Income from Sale of Energy 9,13345 8,718.32 6,821.73 7,075.50 7,247.37 C Non Operating Income 144.38 156.40 372.87 235.36 130.86 Total 9,277.84 8,874.72 7,194.60 7,310.86 7,378.23 D Expenditure paid and provided Fuel Cost 6,517.13 6,378.56 5,170.76 5,273.76 5,424.69 Employees cost 549.96 554.90 474.04 471.17 346.06 Repair & Maintenance 430.30 439.78 423.02 425.36 403.54 Administration & Other overhead 89.31 53.90 55.94 53.21 68.31 Profit before Dep., Interest & Financial charges & tax 1,691.15 1,447.59 1,070.84 1,087.37 1,135.63 Depreciation 651.93 557.91 429.81 421.57 416.25 Profit before interest & financial charges & tax 1,039.22 889.67 641.03 665.80 719.38 Interest & Financial charges 989.22 837.45 614.83 636.92 620.16 Profit before tax 50.00 52.22 26.20 28.88 99.22 IncomeTax 10.67 11.15 5.59 6.05 20.79 Profit after tax 39.33 41,07 20.61 22.83 78.43 Retained profit 39.33 41.07 20.61 22.83 78.43 E What is owned Gross Fixed Asset 20,253.99 20,086.20 13,849.10 13,206.61 13,211.67 Less: Depreciation 6,948.62 6,296.69 5,737.56 5,307.88 4,984.02 Net Block 13,305.37 13,789.51 8,111.54 7,898.73 8,227.65 Capital Work-in-Progress 750.83 699.88 5,773.32 4,912.07 3,610.90 Investments 4.92 4,92 4,92 4,89 6.89 Current Assts, Loans & Advance 10,182.57 9,792.52 9,298.93 7,948.22 8,752.25 Total Net Assets 24,243.69 24,286.83 23,188.71 20,763.91 20,597.69 F What is owed Long Term Loan 7,054.20 7,691.73 9,035.13 8,764.45 7,971.93 Interest Accrued but not due 132.47 133.15 129.04 117.76 94.25 Working Capital Loan 3,077.40 2,420.08 2,598.16 1,824.22 1,971.43 Current Liabilities & Provisions 3,476.66 3,641.90 3,932.46 3,456.39 3,861.81 Total Liabilities 13,740.73 13,886.86 15,694.79 14,162.82 13,899.43 G Networth Share Capital 6,817.54 6,198.65 5,263.28 4,513.33 4,493.33 Reserve & Surplus 1,468.79 1,426.23 1,370.88 1,417.30 1,334.32 Networth 8,286.33 7,624.87 6,634.16 5,930.59 5,827.65 H Capital Employed 20,629.64 20,506.86 19,122.29 17,184.87 16,634.73 I No. of Shares 6,81,75,355 6,19,86,455 5,26,32,800 4,51,33,255 4,49,33,255 J Ratios : 1. Return on Capital employed 5.04% 4.34% 3.35% 3.87% 4.32% 2. Return on Net Worth 0.47% 0.54% 0.31% 0.38% 1.35% 3. Net Worth per share(Rs.) 1,215.44 1,230.09 1,260.46 1,314.02 1,296.96 4. Current Ratio 2.93 2.69 2.36 2.30 2.27 5. Debt Equity Ratio 1.49 1.63 2.21 2.35 2.21 6. Debt Service Coverage Ratio 1.34 1.52 1.58 1.50 1.60 K No. of Employees 4,285 4,432 4,529 4,430 4,404 32 33rd Annual Report 2017-18 `�� : Г•7-- 1"�' �iN UC L � € � ���'ь7 lП f*. Ф � � м�° � С7 tV 4 rn '�л �., € гS Сэ Ф 1� � У � м о © са гч � цti _ * € � : ... п Г � w' '^. . L ''� 7ь ° !h' L7L � е�а .'�- rч �"�.ч ar м С � ° € йё п3 V7 f'4 М д^ � "` м Ci � Ci Ci� sr �Я С] Сз �� ц7 t+z ггг r• Г и гц Сп С4 � � Сй N $ С�Е � 4 : � д� СЛ [iti � !в ® . `е��.._ ~�'"а, г й �м � а+ г`�t, �. � V г° Г Г € � и О С� �С1 � ^ v~i гч с� � о е v� � � € �у +� � � � +� � оо � �_ r^ ,�, О гч о � �'�" н т ап о о Ci С 4гч � "i3 : .: � � а �л � г� � rn � �. � � � '�S 4.i € 01 СЛ СТ П! 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Е ь++ а с :� [:1 f1 ���j [`1 �гf ел : и`s и's и ж J€ l.7 U � С3 , � .� . г� � �¢ v с as е° � й 4г�ь гл гч д € 3зrс{ Аnпиэ� Reparc 2о17-18 33 VV R, F'D C L PLF & PAF 75.00 71.85 70.50 70.00 67.54 70.54 65.00 60.42 PILF PAF 60.00 61A2 58.85 61.05 56AO 55.00 S5.01 50.00 2013-14 2014-15 2015-16 2016-17 2017-18 Al I ocation of G ross Reven ue 2017-18 EMPLOYEE COST 10.66% 0.12% 0.42% 9.40% REPAIRS & MAINTENANCE 0.96% 7.03 5.93% 1.24% STORES CONS UM ED FUILCOST ADMINISTRATIVE EXPENSES DEPRECIATION 70.24 1 NTE REST AND FINANCE CHARGES PROVISION [OR TAXATION PROFIT AFTER TAX ........................................................................................................................................................................................................................................................................................................................................................................................... Elements of Total Cost 2017-18(%) 7.06 10.72% 5.96% 3.42% 1.24% IMP LOYK COST REPAIRS & MAINTENANCE 0.97% STORES CONSUMED FUEL COST ADMINI-JRATIVE EXPENSES 70.62 DEPRECIATION INTEREST AND FINANCE CHARGES 34 33rd Annual Report 2077-18 WBSPDCL Sources of Funds 25000 20000- w 15000- Loan Fund 10000- Reserve & Surplus 5000-, Share Capital 0-i 2013-14 2014-15 2015-16 2016-17 2017-18 Year Application of Funds 25000- 20000 -_ 10000ital Work In Progress 5000-, Net Block 2013-14 2014-15 2015-16 2016-17 2017-18 Year Gross Generation and Power Sold (MKWH) Power Sold 25000- Gms = 20000 -Generation 15000 - 10000 - 5000 2013-14 2014-15 2015-16 2016-17 2017-18 33rd Annual Report 2017-18 35 WBPDCL INDEPENDENT AUDITORS'REPORT To The Members of The West Bengal Power Development Corporation Limited (Abbreviations: Kolaghat Thermal Power Station - KTPS; Bakreswar Thermal Power Project - BKTPP; Bandel Thermal Power Station - BTPS; Santaldih Thermal Power Station - STPS; Sagardighi Thermal Power Project - SgTPP; West Bengal Electricity Regulatory Commission - WBERC; West Bengal State Electricity Board - WBSEB; Rural Electrification Corporation Limited - REC; Power Finance Corporation Limited - PFC; West Bengal State Electricity Distribution Company Limited - WBSEDCL; West Bengal Green Energy Development Corporation Limited - WBGEDCL; West Bengal Renewable Energy Development Agency -WBREDA) Report on the Standalone Ind AS Financial Statements We have audited the accompanying standalone Ind AS financial statements of THE WEST BENGAL POWER DEVELOPMENT CORPORATION LIMITED (the "Company") which comprise the Balance Sheet as at 31st March, 2018, the statement of Profit and Loss (including Other Comprehensive Income), Cash Flow Statement and the statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as"Standalone Ind AS financial statements"). Management's Responsibility for the Standalone Ind AS Financial Statements The Company's Board of Dierctors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit (financial performance including other comprehensive income) ,cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards(Ind AS) prescribed under section 133 of the Act, read with relevant rules issued there under. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate Accounting Policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditors'Responsibility Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements. 36 33rd Annual Report2017-18 WbP LK L We believe that the audit evidence, we have obtained is sufficient and are appropriate to provide a basis for our audit opinion on their standalone Ind AS financial statements. Basis for Qualified Opinion: a) As stated in Note No. 11.1, the Company has not accounted for the loan of Z1 00 lakhs given by the Govt. of West Bengal which has been kept as deposit with Eastern Railways pending receipt of order from Govt. of West Bengal. This has resulted into understatement of both deposit and loan by the said amount. In view of above, we are unable to comment on the consequential impact, if any, on the profitability of the Company in respect to interest on the said loan. b) As stated in Note No. 34 Revenue from Operations includes the "Fixed Cost Adjustment Claim" amounting to Z.52,632.43 lakhs and "Fuel Cost Adjustment Claim"a mounting to Z33,836.91 lakhs for the year pending recovery / final order, computed on estimated basis based on the applicable regulations of WBERC. The consequential adjustment / impact on the financial statement have not been ascertained. c) In reference to Note No.43,'Rate of Transportation'of Coal, from the Pit head to the loading point from the Coal Mines during the period from April, 2014 to March, 2015 has been recalculated on the basis of rates approved by the Board of Directors which were less than billed rates.The difference on both accounts amounting to 7 31,94443 lakhs was reversed during the financial year 2015-16 and adjusted with coal consumption. The reversal included sum relating to earlier years which still remains unascertained. This has consequential impact on the current year's profit and other reported financials. The said adjustment is still subject to confirmation from the respective parties. d) As stated in Note No. 46.1, the management has shown the contingent liability of Z 62,450.22 lakhs and 7 20,457.00 lakhs against interest claimed by ECL and BCCL respectively. However fuel supply agreement (clause no. 12) stipulates that in the event of delay in payment of dues, the seller shall be entitled to charge interest on the outstanding balance due. Non accounting of the same has enhanced the profit of the company with consequential effects on its Net Assets. e) In the view of the management as stated in Note No.49, provisions and liabilities amounting to Z 5,326.43 lakhs is no longer payable and has shown the same under'Other Income'which is not in conformity with Schedule-IllI of the Companies Act, 2013. f) As stated in Note No. 56, balances in Capital Advances, Claims Receivable, Arrear Receivable, Others under Non-Current Financial Liabilities, Loans and Advances, Deposits, retention money payable, trade payables, other payables and material under inspection / lying with contractors are subject to confirmation from respective parties. Pending such confirmation and completion of the reconciliation the consequential adjustments could not be made. In view of the same, we are unable to comment on the consequential impact, if any, on the status of these balances and profits of the company. Opinion In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the basis for Qualified Opinion Paragraph the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March 2018, its profit (financial performance including other comprehensive income), its cash flows and changes in equity for the year ended on that date. Basis for Disclaimer of Opinion a) As stated in Note No. 42, the Hon'ble Supreme Court of India vide its judgment dated August 25, 2014 followed by Order dated September 24, 2014 cancelled coal blocks allocated for the purpose of mining for captive consumption namely (i) Tara (East & West), (ii) Barjore, (iii) Gangaramchak & Gangaramchak-Bhadulia and (iv) Pachwara (North) which were mined by M/s. Bengal Emta Coal Mines Ltd. 33rd Annual Report 2017-18 37 WRIPDCL In terms of the said order the Hon'ble Supreme Court has imposed'Additional levy'of Z 295.00 per metric ton in respect of the Coal extracted from the cancelled Coal Mines till 31st March, 2015. In terms of Explanation to Section 3(n) of the Coal Mines (Special Provisions) Act, 2015, the liability for payment of such'additional levy'of Z 295.00 per metric ton lies with the "Prior Allottee" in whose name the mining lease was granted. In respect of the Coal Blocks of the Company, the mining leases were in the name of M/s. Bengal Emta Coal Mines Ltd. The matter being sub-judice where various interpretations and inference could be drawn, we are unable to express our opinion in this regard. b) The Company accounts for Dearness Allowance on Cash Basis in contradiction to para 3.1 of "Significant Accounting Policies" of the Company as well as section 128 (1) of The Companies'Act, 2013. Hence, we are unable to express our opinion on the Profit and Net Assets of the Company. Emphasis of Matter Paragraph Attention is drawn to the following: a) In respect of Company's investment in Joint Venture Company, M/s. Bengal EMTA Coal Mines Limited (BECML), no provision has been made for diminution in value of investment, arising out of cancellation of mining rights w.e.f. 1st April 2015, since in the opinion of the management of the company the compensation to be received by M/s. Bengal EMTA Coal Mines Limited (BECML), in-terms of the Ordinance / Coal Mines (Special Provisions) Act, 2015, is expected to cover the erosion, if any, in the value of the investment. b) For the compliance of requirement of Schedule Ill of the Companies Act, 2013, the Company has bifurcated the assets and liabilities into Current and Non-Current based on the judgment to the extent where no proper information were readily available. Our opinion is not qualified in respect of these matters Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor's Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable. 2. In terms of sub-section (5) of section 143 of the Companies Act, 2013, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in "Annexure B', a statement on the directions and sub-directions issued under the aforesaid section by the Comptroller & Auditor General of India. 3. As required by Section 143(3) of the Act, we report that: (a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. (b) Except for the effects of the matters described in the Basis for Qualified Opinion paragraph and under Clause (c) of Basis for Disclaimer of Opinion, in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. (c) The Balance Sheet, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account. (d) Except for the effects of the matters described in the Basis for Qualified Opinion paragraph, in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with relevant rules there under, except accounting of Dearness Allowance on cash basis in contrary to Ind AS-8 and Section 128 (1) of The Companies'Act, 2013. 38 33rd Annual Report 2017-18 WBPDCL (e) Being a Government Company, pursuant to the Notification No. GSR 463(E) dated 5th June 2015 issued by Ministry of Corporate Affairs, Government of India, provisions of sub-section (2) of Section 164 of the Companies Act, 2013, are not applicable to the Company. (f) With respect to the adequacy of the Internal Financial Controls over financial reporting of the Company and the operative effectiveness of such controls, refer to our separate report in "Annexure C". (g) With respect to the other matters to be included in the Auditor's Report in Accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 read with Companies (Audit & Auditors) Amendment Rules 2017, in our opinion and to the best of our information and according to the explanations given to us: i) The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 46.1 to 46.24 to its standalone financial statements. ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. iii) There has been no amount which was required to be transferred by the Company to the Investor Education and Protection Fund by the Company during the year ended 31st March, 2018. For S R I ASSOCIATES Chartered Accountants. Firm's Registration No.: 305109E Place of Signature: Kolkata Date: 17th September 2018 Sd/- Partner Name: ISMAT PASHA ICAl Membership No.: 013280 33rd Annual Report 2017-18 39 WBPDCL "ANNEXURE - A" TO THE AUDITOR'S REPORT ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF EVEN DATE TO THE MEMBERS OF THE WEST BENGAL POWER DEVELOPMENT CORPORATION LIMITED ON THE STANDALONE IND AS FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2018. On the basis of such checks as we considered appropriate and according to information and explanations given to us during the course of our Audit, we report that: i) a) The company has maintained proper records showing full particulars including quantitative details and situation of Property, Plant and Equipment; b) Property, Plant and Equipment have been physically verified by the Management at regular intervals and no material discrepancies were noticed on such verification; c) Title deeds of land which are reportedly held in the name of the Company were not presented before us for verification at the time of Audit except for BTPS and STPS. ii) The management verified inventory physically during the financial year 2017-18 on Test Check basis and no material discrepancies were noticed. iii) The company has not granted any loan, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. In view of above clauses (iii) (a), (iii) (b) and (iii) (c) are not applicable to the Company. iv) In respect of investments and securities, provisions of sections 185 and 186 of the Companies Act have been complied with to the extent to which this section is applicable. v) The company has not accepted any public deposit within the meaning of Sections 73 to 76 or other relevant provisions of the Act. vi) Maintenance of cost records has been specified by the Central Government under subsection (1) of Section 148 of the Companies Act, 2013 and such accounts and records are being so made and maintained. However we have not made a detailed examination of these accounts and records with a view to determine whether they are accurate or complete. vii) a) As stated in Note No.- 48, the Company does not have a separate Trust Fund for General Provident Fund and as such the GPF contributions of the concerned employees are kept invested in the Company's account. Subject to above and according to the available records, information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including Employee State Insurance, IncomeTax, Sales Tax, Goods & Service Tax, Cess and any other statutory dues applicable to it, with appropriate authorities. b) According to the information and explanations given to us, there are disputed statutory dues on account of matters pending before appropriate authorities are detailed below:- (T In Lakhs) SI. Forum where it N. Name of the Statute Nature of Dues is p ei Amount Year No. is pending 1 Employees Provident Fund and Provident Fund Calcutta High Court 69.83 F.Y. 2011-12 Miscellaneous Provisions Act,1952 2 Employees State Insurance Act,1948 Employees Calcutta High Court 520.16 F.Y. 2007- 08 State InsuWrance 3 Workmen's'Compensation Act 1923 Compensation Workmen 22.00 - Compensation Court 2.0 4 Income Tax Act, 1961 IncomeTax Appellate Authority 1,23,586.35 F.Y. 2006-07 40 33rd Annual Report 2017-18 WBLi P DC L viii) The Company defaulted in repayment of loans to Government of West Bengal, Details of which in lakh of rupees are as follows:- Year Amount 2017-18 10,042.85 ix) The Company has not raised any money by way of Initial Public Offer or further public offer (including Debt Instrument) and Term Loans were applied for the purposes for which those were raised. x) According to the Chief Vigilance Officer & Ex-Officio Director of the Company, "No incidence of any fraud by the company i.e The West Bengal Power Development Corporation Ltd. Or any fraud by its officers or employees has been noticed or reported during the year 2017-18 except for a case of manipulation of ash measurement data by two employees in the rank of Asst. Manager (Survery) and Sub-Assistant Engineer (Survey). Punishment of reduction to a lower stage in the existing pay scale of those employees was imposed through disciplinary proceedings. However no financial loss was incurred to Corporation on this count". Besides the above case, we have not come across any fraud on the Company or by the Company during the year under audit. Apart from the above, no vigilance report was presented to us for review. xi) In view of exemption given vide in terms of Notification No. G.S.R. 463(E) dated 5th June 2015 issued by the Ministry of Corporate Affairs, the provisions of Section 197 read with Schedule V of the Companies Act regarding managerial remuneration are not applicable to the Company. xii) The Company is not a Nidhi Company. Therefore this clause does not apply to it. xiii) All transaction with the related parties are in compliance with Sections 177 & 188 of the Companies' Act, 2013 and the details have been disclosed in the Notes to Financial Statements, as required by the applicable Indian Accounting Standards. xiv) The Company has not made any Preferential Allotment or Private Placement of Shares or fully or partly convertible debentures during the year under review. Hence, this clause is not applicable to the Company for its current Financial Year. xv) The Company has not entered into any non-cash transaction with Directors or persons connected with him. xvi) The Company being a Power Generating One is not required to be registered under Section 45-lA of The Reserve Bank of India, 1934. Therefore, the provisions of Clause 3(xvi) of the Order are not applicable to the Company. For S RI ASSOCIATES Chartered Accountants. Firm's Registration No.; 305109E Place of Signature: Kolkata Date: 17th September 2018 Sd/- Partner Name: ISMAT PASHA ICAl Membership No.:013280 33rd Annual Report 2017-18 41 WBPDCL "ANNEXURE - B" TO THE AUDITOR'S REPORT ANNEXURE REFERRED TO IN PARAGRAPH 2 UNDER THE HEADING OF "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF EVEN DATE TO THE MEMBERS OF THE WEST BENGAL POWER DEVELOPMENT CORPORATION LIMITED ON THE STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2018. GENERAL DIRECTIONS UNDER SECTION 143(5) OF THE COMPANIES ACT, 2013 SI. Particulars Replies Impact on financial No. statement (1) Valuation of Assets & Liabilities If the Company has been selected for disinvestment, a complete status report in terms of valuation of Assets (including Not Applicable Nil intangible assets and land) and Liabilities (including Committed and General Reserves) may be examined, including the mode and present stage of disinvestment process. (1l) Waiver! write-off of debts/loan/interest Whether there are any cases of waiver/write-off of No such cases were reported Nil debts/loans/interests etc. If yes, the reasons therefore and the during the period under audit. amount involved. (III) Inventories As informed to us, no such Whether proper records are maintained for inventories lying inventories are lying with third Nil with third parties and assets received as gift/grant(s) from parties/assets received as gift Government or other authorities? from the govt. or other authorities (IV) Legallarbitration cases A report on age-wise analysis of pending legal/arbitration Please refer Annexure I cases, including the reasons of pendency and attachedfordetails. PresentlyeffectisNil existence/effectiveness of a monitoring mechanism for expenditure on all legal cases (foreign and local) may be given. (V) Title/Lease deeds Title deeds of land which are Whether the company has clear title/lease deeds for freehold reportedly held in the name of Not known if any. and leasehold land respectively? If not please state, the area the Company were not readily of freehold and leasehold land for which title/lease deeds are available for verification. not available? 42 33rd Annual Report2017-18 W3PDCL Sector Specific Sub-directions under Section 143(5) of the Companies Act, 2013 SI. Impact on financial No. Particulars Replies statement 1. How much cost has been incurred on abandoned No such cases were reported during Nil projects and out of this how much costs has the period under audit. been written off? 2. In case ofThermal Power Projects, compliance It has been observed that the company This may be construed as of the various Pollution Control Acts and the maintains separate account head for Change in accounting impact thereof including utilisation and disposal sale of fly ash under accounting head policy, which has been of ash and the policy of the Company in this "Fly Ash Utilisation Reserve Fund" As suitably disclosed by the regard may be checked and commented upon. explained to us, the specified end use company in its "Significant of such fly ash has been made as per Accounting Policy" with the prescribed guidelines as notified effect from financial year by the Ministry of Environment and 2015-16. Forest, Govt. of India vide Clause No.6 of the Notification dt. 03.11.2009. 3. Has the Company entered into revenue sharing We were informed that, no such agreements with private parties for extraction agreement has been entered into by Nil of coal at pitheads and it adequately protects the company. the financial interest of the company? 4. Does the Company have a proper system for The Company has a FSA (Fuel supply reconciliation of quantity/qualityof coal-ordered agreement) with the subsidiaries of Nil and received and whether grade of coal moisture Coal India Ltd. and demurrage etc. are properly recorded in the The Company have a system of books of accounts? reconciliation of quantity/quality of coal ordered, received, grade of coal, demurrage etc. and the same is properly recorded in the books. Liability against disputed claims have not been provided for in books but disclosed in financial statement as Contingent Liability. For S RI ASSOCIATES Chartered Accountants. Firm's Registration No.: 305109E Place of Signature: Kolkata Date: 1 7th September 2018 Sd/- Partner Name: ISMAT PASHA ICAl Membership No.: 013280 33rd Annual Report 2017-18 43 WBPDCL "ANNEXURE C"TO THE INDEPENDENT AUDITORS'REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF THE WEST BENGAL POWER DEVELOPMENT CORPORATION 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 The West Bengal Power Development Corporation Limited ("the Company") as of 31t March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date. Management's Responsibility for Internal Financial Controls The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by The Institute of Chartered Accountants of India ('ICAI'). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. Auditor's Responsibility Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing, issued by the ICAl and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting. Meaning of Internal Financial Controls Over Financial Reporting A Company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles including the Indian Accounting Standards (Ind AS). A company's internal financial control over financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and payments of the company are being made only in accordance with authorizations of management and directors of the company; and 44 33rd Annual Report 2017-18 (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Inherent Limitations of Internal Financial Controls Over Financial Reporting Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion We have noticed the following limitations in internal financial controls in course of our audit: 1) Balance confirmations for old receivables and payables are not pursued upon by the Company and sufficient details of such receivables / payables were also not available; 2) Stock of"Stores and Others" were verified by management on Test Check basis during the year under review and the management did not have any such inventory verification policy; 3) Policy on obsolete, damage and unserviceable stores and spares were not found. In view of above we are of the opinion that there is ample scope of improvement in internal financial controls over financial reporting based on essential components of internal control. For SR I ASSOCIATES Chartered Accountants. Firm's Registration No.: 305109E Place of Signature: Kolkata Date: 17th September 2018 Sd/- Partner Name: ISMAT PASHA ICAl Membership No.: 013280 33rd Annual Report 2017-18 45 WBPDCL STATUS OF THE BRIEF LIST OF LEGAL CASES/STATUTORY PROCEEDINGS IN RESPECT OF THE WEST BENGAL POWER DEVELOPMENT CORPORATION LIMITED AS ON 31.03.2018 Annexure-I SI. Cause Title Forum Issue Involved Status as on date Financial No. (As per available records) Liability 1 W.P. No. 9013(W) of The Corporation had challenged Last hearing was held on The Bank 2011 HighCourt the order of the Regional 22.06.2011 whereupon the Guaranteeto The West Bengal Provident Fund Commissioner Hon'ble Court directed to the tune of Power Development (EPFO), Kolkata passed under furnish the Bank Guarantee ? 69,82,944/- Corporation Limited section 7A and 7B of the to the tune of 7 69,82,944/- was furnished Vs. Employees' Provident Fund and which shall be duly approved by the Union of India & Ors. Miscellaneous Provisions Act, 1952 by the Office of the Registrar Corporation on before the Hon'ble High Court, General, Appellate Side, High 13.08.2011 for Calcutta and the matter was heard Court, Calcutta. a period of one on 22.06.2011 whereupon His year and time Lordship was pleased to pass an to time order of unconditional stay of extended and operation of the impugned order last of such and also directed that above extension is interim order shall continue until valid upto further orders subject to 13.08.2018. furnishing Bank guarantee to the tune of T 69,82,944/- (an amount that was assessed by the RPFC Authority) initially for a period of 1 year which shall be renewed from time to time. 2 C.S. No.415 of 2013 A Tender was invited by the The instant matter came up As would be M/s. Sarda Energy & Corporation towards dismantling before Hon'ble Justice I.P. decided by the Minerals Ltd. / demolition and disposal of Mukerji on 20th March, 2014 Hon'ble High Vs. High Court decommissioned 4X1 20 MW units when His Lordship directed Court. WBPDCL of Santaldih Thermal Power the corporation to keep the Station.The Petitioner participated guaranteed amount in a in the aforesaid tender and separate interest bearing competed in e-auction. But the account with a Bank earning said e-auction was cancelled. the highest rate of interest, Subsequently M/s.Sarda being Hl free from any lien, upon bidder was awarded with the intimation to the advocate- contract at the H1 Price. Due to on-record for the plaintiff. non-performance of Demolition, Thereafter, a summons has dismantling and disposal of been received by the decommissioned Unit nos. 1, 2, 3 corporation on 25.02.2016 & 4 (4X120 MW) of Santaldih issued bytheOfficeofthe Dy. Thermal Power Station, WBPDCL Sheriff, Calcutta High Court invoked the Bank Guarantee of requiring the corporation to 75 Crore. cause an appearance by an advocate, before the Ld. Registrar within twelve days from the service of the said summons and file written statement. Matter is presently pending. 3 Tender Case No.6 of The applicant was show caused to The order of injunction has As would be 2014 ESI Court pay contribution for the period been extended time to time. decided bythe The West Bengal 2008-2009 on omitted wages on Ld. ESI Court. which the contributions are 46 33rd Annual Report 2017-18 KL WB3PDCL SI. Status as on date Financial No. Cause Title Forum issue Involved (As per available records) Liability Power Development payable. Without affording Corporation Limited reasonable opportunities of Vs. hearing an order under section ESI Corporation & Ors 45A of the ESI Act was passed wherein an amount of Z 90,329/- was determined by the O.P. The Order has been challenged by the Corporation before the ESI Court. On 25.04.2014 the Ld. Judge has been pleased to pass an order of injunction restraining the O.P to proceed further and/or to take any steps whatsoever on the basis of the order u/s 45A of the referred Act passed against the applicant and the said interim order has been extended from time to time. 4 Tender Case No. 124 The application was show caused The matter had come up As would be of 2014 to pay contribution for the period before the Ld. Court on decided by the The West Bengal April, 2009 to March, 2010 on 23.11.17, when the Ld. Court Ld. ESI Court. Power Development ESI Court omitted wages on which the had directed that the order Corporation Limited contributions are payable. Without Vs affording reasonable of injunction shall be allowed ESI Corporation &Ors. opportunities of hearing an order subject to deposition of under section 45A of the ESI Act Z 5676/- (50% of the claimed was passed ex-parte wherein an amount of Z 11,352/-) by amount of Z11,352/- was . determined by the O.P. The order WBPDCL. the said amount has been challenged by the has been duly deposited by Corporation before the ESI Court. WBPDCL. The matter had The Ld. Judge has been pleased been further posted on to pass an order of injunction 22.12.17 for filing proof of restraining the O.P to proceed further and/or to take any steps whatsoever on the basis of the However, the matter had not order u/s 45A of the referred Act come up after that. passed against the applicant and the said interim order has been extended from time to time. 5 Tender Case No. 127 ESI Court The applicant was show caused to The order of injunction has As would be of 2014 pay contribution for the period been extended time to time. decided by the The West Bengal April, 2008 to March, 2009 on Ld.ESICourt. Power Development omitted wages on which the Corporation Limited contributions are payable. Without Vs affording reasonable ESI Corporation & Ors. opportunities of hearing an order under section 45A of the ESI Act was passed ex-parte wherein an amount of Z 8,84,578/- was determined by the OR The order has been challenged by the Corporation before the ESI Court. The Ld. Judge had passed an order restraining the O.P to take any coercive measure till orders and the said interim order has been extended from time to time. 33rd Annual Report 2017-18 47 WBPDCL SI. Cause Title Forum Issue Involved Status as on date Financial No. (As per available records Liability 6 OriginalApplication Green Thematterisrelatedtopollution The matter is pending No financial No. 102 of 2014 Bench by the Fly ash generated by the before the Principal Bench, liability lies upon M/s. Sandplast (India) Tribunal, Thermal Power Stations. The National Green Tribunal the Corporation. applicant alleged that the Ltd. & Anr. New Delhi Notifications and/or Circulars New Delhi. Vs issued by the MOEF is being MOEF & Ors. flouted by the Thermal Power Stations and other Govt. Departments resulting in pollution. WBPDCL have been made Respondent No. 113 in the aforesaid matter amongst many others. 7 Misc. Case No.221/15 The Block The issue involved is a dispute Based on the prayer dtd. No financial & 131/15/Santi-I Land & arising out of ownership of Plot 05.10.2015 submitted by liability lies upon Between Gobinda Land Nos. 1037,1038& 1137 of Mouza DGM(HR&A), KTPS for the Corporation. Chandra Adak & Reforms sKakdihi, J.L. No.5, Dist-Purba supply of copy of petitions Officer, - in question which was not Others Tamluk-ll, Medinipur, wherein the petitioners found annexed with the -vs- Purba are claiming that the plots in Notice dtd. 12.08.2015 Senior Medinipur question to be their properties. issued by the Revenue Manager(HR&A), KTPS Officer, Office of the BL& WBPDCL & Others LRO, Tamluk-II, the same have been provided by the (Dealt by KTPS) BL & LRO, Tamluk-ll, vide her Memo No.- 328 dtd. 16.06.2016 wherein the scheduled date of hearing i.r.o. instant matter was fixed on 26.07.2016. Accordingly, the Parawise written statement against the petitions in question, based on records available with Survey section of Civil Dept., KTPS, WBPDCL has been submitted by the DGM (HR&A), KTPS. The matter has not come up yet. 8 Claim of Workmen Though the prima facie financial A total of 09 No. of cases are As would be compensation under Compensa liability lies upon the Contractor pending before the Ld.W.C. decided by the Workmens' tion Court and if the Contractor fails, the Court with the claim W.C.Courtbut Compensation Act. liabilities lies upon theCorporation amounting to the tune of liability would be as would decided by the court, Z22,00,000/- (approx), upon the However, the contractors in . question have insured their insuance workers in question and liability company. will be on Insurance Company. 9 W.P.No. 27516 (W) of The instant writ petition has been The Hon'ble High Court has The F & A Wing 2015 filed by EMTA Coal Ltd praying for directed to file affidavit in will be able to EMTA Coal Ltd High Court quashing the letter issued by the instant matter which highlight the Vs WBPDCL unilaterally reducing the has been duly submitted financial liability Asst Commissioner of transportation price of coal and by the Corporation. of the Central Excise and directing WBPDCL to the alleged Corporation, if at Sales Tax due amount interest @ 18% p.a all there is any. towards supply of coal in terms of the Joint venture Agreement. 48 33rd Annual Report 2017-18 W3PDCL SI. Cause Title Forum Issue Involved (a vi date Financial No . Cas il ou su novd(As per available records) Liability 10 O.A.No.114 of 2015 The grievance of the applicant is The matter lastly came up Financial liability Mr. Subroto that the KTPS is polluting the before the Hon'ble Tribunal can not be Mookherjee&Ors. National surrounding village which is onl5.01.18whentheHon'ble calculated at Vs. Green affecting the livelihood of local Tribunal directed the Regional this stage. The GM, KTPS & Ors Tribunal, people and as a result tremendous Office of CPCB and the NGT health hazard is seen among the WBPCB to monitor the hecalth hazr iperformance of the KTPS with local people. regard to emission levels. 11 A.R 1709 Of 2015 The award passed by ICC(Arbitral The matter was taken up for As per award G.A.37500f 2015 Tribunal) on 24.08.2015 and hearing on 07.03.2017 WBPDCLisliable WBPOCL High Court WBPOCL filed an appeal before where His Lordship apaymentofZ Vs the Hon'ble High Court, Calcutta 1.P.Mukerji observed that for 223,02,94,966.58 Dongfang Electric against the said award on consideringtheapplication (as on 31.01 .201 7)- Plus Corporation 26.11.2015 under Section 34 ofthe for stay (GA No. 3750 of release of Bank Arbitration and Conciliation Act, 2015) till 12th April, 2017 or Guarantee of 1996. until further orders whoever USD 13,500,000 is earlier, the award-holder (or its INR will not take any step for equivalent) and execution of the award to INR 240,000,000, enable this Court to heldinAllahabad consider the stay Bank,Stephen's application.The matter is Court Branch, pending before the Hon'ble Kolkata pursuant High Court for effective t an2orde1 dated hearing, at this moment no modified on coercive order is passed 13.04.2011 of the against the corporation. Calcutta High Court. Plus set off allowed against excess tax reimbursement: INR 1,05,58,009 (to be considered at the time of reimbursement of tax). 12 W.P.No.24344(W)of HighCourt Theinstantpetitionhasbeenfiled The Hon'ble Judge has As would be 2016 by the petitioner for a direction observed on 03.11.16 that decided by the M/sG&S upon the WBPDCL for the issue requires Hon'ble High Construction payment/release of due bill of adjudication after the parties vs Z 3,63,675/- + idle charges of exchange their affidavits. Court. State ofW.B & Ors machinery from 01.03.14 o Thus, His Lordship has to directed to file affidavit-in- 05.09.14 alongwith interest in opposition within four reference of Work Order against weeks; and has further the NIT Ref No. STPS/GM/ directed that reply thereto, Civil/PM/1089/1759 dated if any, may be filed within 2 03.07.13. weeks thereafter. His Lordship has directed to put up the writ petition in the monthly list of January, 2017 under the heading 'Final Disposal'. 13 W.P.No. 22520(W) of High Court The instant petition has been filed The instant matter came up As would be 2017 before the Hon'ble High Court, before the Hon'ble Court on decided by the Siur Co-operative Calcutta praying for disbursement 04.09.17 when His Lordship Hon'ble High of an amount of Z23,03,673/- with directed WBPDCL to file Labour Contract & interest to be calculated till the affidavit-in-opposition to Court. date of disbursement forthwith, the writ petition within 33rd Annual Report 2017-18 49 WBPDCL SI. Status as on date Financial No. Cause Title Forum Issue Involved (As per available records) Liability Construction Society for doing the work of carriage of three weeks after the Puja Ltd vs The State of ash including loading, unloading vacation, reply thereto, if West Bengal & Ors & disposing of ash from any, be filed within one week thereafter and Chandrabhaga river side at the directed the matter to BkTPS. appear in the monthly combined list of December, 2017. ARBITRATION MATTER 1 M/s. SPML WBPDCL had envisaged the M/s.SPML completed their Claim raised by (Claimant) High Court project namely Make Up Water evidence, the cross M/s SPML is Vs. System from Panchet Dam examination ofthe witness Z 52.64 Crores + WBPDCL ReservoirtoSTPSintheyear2004, of WBPDCL has started. Interest @ 18% the contract was awarded to SPML p.a. + Cost of (Respondent) through open tendering during Arbitration. the year 2004, the agency SPML did not complete the work within the scheduled period of 16 months as per LOA as a result there was a outstanding payment. SPML vide letter No. 2B:OC-125:DD:629 dated 25.10.2013 served a notice for arbitration. At present the Arbitration proceeding is continuing. 2 M/s Adani Enterprises High Court On 18.01.2017 M/s. Adani M/s.Adanihavesubmitted Total amount of Ltd Enterprises Ltd. served notice to its claim and WBPDCL has claims raised by (Claimant) WBPDCL for arbitration. The already prepared their M/s. Adani is Vs. arbitrators which were proposed by counter claim and reply. Z 238.48 (crores) M/s. Adani was opposed and ThenextdateofArbitration + 18%interesttill WBPDCL ultimatelythematterwastakenup is fixed on 27.04.2018. the date of (Respondent) before the Hon'ble High Court at Calcutta for appointment of payment + Cost arbitrator. Justice S.P.Talukdar (Retd.) of Arbitration. was appointed as the sole arbitrator. M/s. Adani submitted its claim the prayers of the claim appended below:- i) Z 53.12 Crores towards outstanding payments. ii) Z121.14 Crores towards interest payable on the delayed payments as well as outstanding payments till the date of filing the claim. iii) Z 47.43 Crored towards differential customs duty. iv) Z1 1.40 crores towards losses on account of foreclosure of the Purchase Order. v) ? 65,95,710 towards reimbursement of VAT and Z @ 66,15,039 towards CST applicable on the Railway Freight. vi) Direct the Respondent to submit the C-Form for the amount of 7 135.74 crores and in case of failure to do so, pay Z 4.07 crores toward s differential CST @3% with interest @18% p.a. since 1 April, 2014 payable to Sales Tax authorities till the date of the award. 50 33rd Annual Report2017-18 WB3PDCL REPLY TO THE COMMENTS OF THE STATUTORY AUDITORS'IN ITS REPORT ON THE ACCOUNTS OF WBPDCL FOR THE YEAR 2017-2018 Clause Auditor's Comments Management's Reply a) As stated in Note No. 11.1, the Company has not Note No 11.1. states accounted for the loan of t100 lakhs given by Other Advances include T 414.00 lakhs (RY. T 414.00 the Govt. of West Bengal which has been kept as lakhs) with Eastern Railway against railway freight in deposit with Eastern Railways pending receipt of order from Govt. of West Bengal. This has respect of BkTPP, 8TS and SGIPR Further Z 100.00 resulted into understatement of both deposit lakhs CRY. 7 100.00 lakhs ) deposit given by Govt. of and loan by the said amount. In view of above, West Bengal has not been accounted for in respect of we are unable to comment on the consequential BkTPP due to non-receipt of Govt. of West Bengal Order impact, if any, on the profitability of the Company in this regard. in respect to interest on the said loan. b) As stated in Note No - 34 Revenue from Note No 34.4 & 34.5 are reproduced below: Operations includes the "Fixed Cost Adjustment" Claim amounting toZ52,632.43 lakhs and"Fuel 34.4 Revenue from Operation includes cost Cost Adjustment Claim"amounting to? 33,836.91 recoverable through future Fixed Cost lakhs for the year pending recovery/ final order, Adjustment for the year 2017-18 amounting to computed on estimated basis based on the T 52,632.43 lakhs (PY. T 13,668.22 lakhs) being applicable regulations of WBERC. The 95% (taken conservatively) of the amount consequential adjustment/impact on the determined by the management as per the financial statement have not been ascertained, applicable norms based on actual performance [See Note No: 3.14 (c) of the Significant Accounting Policies], with consequential impact on the net profit of the year.. The applications of the aforesaid claim on account of fixed Cost are to be lodged with WBERC together with Audited Financial Statements. 34.5 Revenue from Operation includes cost recoverable through future Fuel Cost Adjustment for the year 2017-18 amounting to Z 33,836.91 lakhs (P.Y. Z 54,881.00 lakhs), being 95% (taken conservatively) of the amount determined on the basis of the formula of WBERC [See Note: 3.14 (c) of the Significant Accounting Policies] with consequential impact on the net profit of the year. The application of such claim will be lodged with WBERC together with audited Financial Statements and other related documents. 33rd Annual Report 2017-18 51 WBPDCL Clause Auditor's Comments Management's Reply c) In reference to Note No. 43, 'Rate of NoteNo43isreproducedbelow: Transportation'of Coal, from the Pit head to the Pending settlement of 'Rate of Transportation'of Coal, loading point from the Coal Mines during the from the Pit head to the loading point, supplied by period from April, 2014 to March, 2015 has been M/s Bengal Emta Coal Mines Ltd from the Coal Mines recalculated on the basis of rates approved by at Barjore, Gangaramchak & Gangaramchak-Bhadulia the Board of Directors which were less than billed and Pachhwara (North), rates approved by the Board rates. The difference on both accounts amounting of Directors during FY 2014-15 have been considered to Z 31,944.43 lakhs was reversed during the in the preparation of accounts. M/s Bengal Emta Coal financial year 2015-16 and adjusted with coal Mines Ltd has filed writ petition praying before the consumption.The reversal included sum relating Hon'ble High Court for quashing the letter issued by to earlier years which still remains unascertained. WBPDCL unilaterally reducing the transportation price This has consequential impact on the current of coal and directing WBPDCL pay interest @ 18% p.a year's profit and other reported financials. The on the alleged amount towards supply of coal in terms said adjustment is still subject to confirmation of the Joint venture Agreement. from the respective parties. d) As stated in Note No.46.1, the management has Note No 46.1 is reproduced below: shown the contingent liability of Z 62,450.22 Interest claimed by the Eastern Coal Fields Ltd (ECL) for lakhs and Z 20,457.00 lakhs against interest delayed payment in respect of all the units till 31st claimed by ECL & BCCL respectively. However March, 2018 amounting to T 62,450.22 lakhs based on fuel supply agreement (clause no. 12) stipulates the claim received (P.Y.: Z 60,645.00 lakhs) has been that in the event of delay in payment of dues, disputed bythe Company. Similarly interest claimed by the seller shall be entitled to charge interest on Bharat Coking Coal Limited (BCCL) in respect of all units the outstanding balance due. Non accounting of till 31.03.2018 amounting to Z 20,457.00 lakhs has been the same has enhanced the profit of the company disputed by the Company. with consequential effects on its Net Assets. e) In the view of the management as stated in Note Note No 49 is reproduced below: No. 49, provisions and liabilities amounting to The Management has reviewed various credit balances ? 5,326.43 lakhs is no longer payable and has which were lying credited for more than eight years shown the same under'Other Income'which is (except encashed bank guarantees) and is of the not in conformity with Schedule-Ill of the opinion that those are no longer payable ( including Companies Act, 2013. encashed bank guarantees) and hence credited to the statement of Profit and Loss Account and reflected under "Miscellaneous Receipts", "Sundry Balances Written Back" and "Other Expenses" during the year as shown below:- (T in Lakhs) 2017-18 5,326.43 52 33rd Annual Report 2017-18 W3PDCL Clause Auditor's Comments Management's Reply f) As stated in Note No. 56, balances in Capital Note No 56 is reproduced below: Advances, Claims Receivable, Arrear Receivable, The Balances shown under Capital Advances, Claims Others under Non Current Liabilities Loans and receivable, Arrear Receivable, Others under Non Current Advances, Deposits, retention money payable, Financial Liabilities, Loans and Advances, Deposits, trade payables, other payables and material Retention money payable, Trade payables, other under inspection/lying with contractors are payables and material under inspection/lying with subject to confirmation from respective parties. contractors are subject to confirmation from respective Pending such confirmation and completion of the reconciliation the consequential adjustments could not be made. In view of the same, we are unable to comment on the consequential impact, if any, on the status of these balances and profits of the Company. Disclaimer of Opinion a) As stated in Note No. 49, the Hon'ble Supreme Note No 49 is reproduced below: Court of India vide its judgment dated August 25,2014 followed by Order dated September 24, The Hon"ble Supreme Court of India vide its judgment 2014 cancelled coal blocks allocated for the dated August 25, 2014 followed by Order dated purpose of mining for captive consumption September 24, 2014 cancelled 204 coal blocks in the namely (i) Tara (East & West), (ii) Barjore, (iii) Country which were earlier allocated by the Ministry Gangaramchak & Gangaramchak-Bhadulia and of Coal, Govt. of India for the purpose of mining for (iv) Pachwara (North) which were mined by captive consumption. These 204 coal blocks include M/s. Bengal Emta Coal Mines Ltd. four coal blocks () Tara (East & West), (ii) Barjore, (iii) Gangaramchak & Gangaramchak-Bhadulia and In terms of the said order the Hon'ble Supreme (iv) Pachhwara (North) allotted earlier to the Company Court has imposed 'Additional levy'of ? 295.00 which were mined by M/s Bengal Emta Coal Mines Ltd, per metric ton in respect of the Coal extracted the joint venture company amongst WBPDCL, DPL and from the cancelled Coal Mines till 31st March, EMTA Coal Limited. 2015. In terms of Explanation to Section 3(n) of the Coal Mines (Special Provisions) Act, 2015, the Further in its Order dated 24th September, 2014 the liability for payment of such'additional levy'of Hon'ble Supreme Court imposed 'Additional levy' of 7295.00 per metric ton lies with the"Prior Allottee" Z 295.00 per metric ton in respect of the Coal extracted in whose name the mining lease was granted. In from the cancelled Coal Mines till 31st March 2015. In respect of the Coal Blocks of the Company, the terms of Explanation to Section 3(n) of the Coal Mines mining leases were in the name of M/s. Bengal (Special Provisions) Act, 2015, the liability for payment Emta Coal Mines Ltd. of such'Additional levy'of Z295.00 per metric ton lies The matter being sub-judice where various with the"Prior Allottee" in whose name the mining lease were granted. In respect of the Coal Blocks of the interpretations and inference could be drawn, Cmay h iiglae eei h aeo we re nale o eprss ur piionin h. Company, the mining leases were in the name of eare. uM/s Bengal Emta Coat Mines Ltd and therefore they are considered as the "Prior Allottee" Hence no liability rests with the Company. b) The Company accounts for Dearness Allowance Note No 66 states: on Cash Basis in contradiction to para 1.1 of The Company is consistently accounting Dearness "Significant Accounting Policies"' Hence, we are Allowance based on actual disbursement. unable to express our opinion on the Profit and Net Assets of the Company based on Accrual Basis of Accounting. 33rd Annual Report 2017-18 53 I II WBPDCL Emphasis of Matter Clause Auditor's Comments Management's Reply a) In respect of Company's investment in Joint Note No 8.2.2 is reproduced below: Venture Company, M/s. Bengal EMTA Coal Mines In respect of Company's investment in Joint Venture Limited (BECML), no provision has been made Company, M/s Bengal EMTA Coal Mines Limited fordiminution in value of investment, arising out (BECML), no provision has been made for diminution of cancellation of mining rights w.e.f. It April in value of investment, arising out of cancellation of 2015, since in the opinion of the management mining rights w.e.f. l5 April 2015, since the of the Company the compensation to be received compensation to be received by BECML, in-terms of the by MWs. Bengal EMTA Coal Mines Limited (BECML), Coal Mines (Special Provisions) Act, 2015, is likely to in-terms of the Ordinance!/ Coal Mines (Special Pn-eroso t,e 2015is ecte d to covier tpea I cover the erosion, if any, in the value of investment. Provisions) Act, 2015, is expected to cover the erosion, if any, in the value of the investment. b) For the compliance of requirement of Schedule Ill of the Companies Act, 2013, the Company has bifurcated the assets and liabilities into Current and Non-Current based on the judgment to the extent where no proper information were readily available. CARO i(c) Title deeds of land which are reportedly held in Title deeds of land in possession of the company are the name of the Company were not presented available at respective Power Stations before us for verification at the time of Audit except for BTPS and STPS. 54 33rd Annual Report 2017-18 WbPDCL OFFICE OF THE ACCOUNTANT GENERAL (Economic and Revenue Sector Audit) West Bengal No. :- OA (ESA-1I)/Acetts/WBPDCL/2017-18/1845 Date: - 19.12.2018 To The Chairman and Managing Director, The West Bengal Power Development Corporation Limited, 'Vidyut Unnayan Bhavan', Plot No. 3/C, LA- Block, Sector - III, Salt Lake, Kolkata 700098 Sub : Comments of the Comptroller and Auditor General of India under Section 143 (6) of the Companies Act, 2013 on the Financial Statements of The West Bengal Power Development Corporation Limited for the year ended 31st March 2018 Sir, The comments of the Comptroller and Auditor General of India under Section 143(6) of the Companies Act, 2013 on the accounts of The West Bengal Power Development Corporation Limited for the year ended 31st March 2018 are enclosed. Yours faithfully Sr. Deputy Accountant General (ESA-II) End: As stated. West Bengal Tt. --.t. t W( #,1 Iz IcRI 700 064 3rd MSO Building, 5th Floor, CGO Complex, DF Block, Salt Lake, Kolkata-700 064. Phone : (033) 2337 - 4916; FAX : (033) 2337 - 6966, e-mail : aglbaWestbengal@cag.gov.in 33rd Annual Report 2017-18 55 ctj WBPDCL COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF THE WEST BENGAL POWER DEVELOPMENT CORPORATION LIMITED FOR THE YEAR ENDED 31ST MARCH 2018 The preparation of financial statements of The West Bengal Power Development Corporation Limited for the year ended 310 March 2018 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the company. The statutory auditors appointed by the Comptroller and Auditor General of India under section 139(5) of the Act are responsible for expressing opinion on the financial statements under section 143 of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143 (10) of the Act. This is stated to have been done by them vide their Audit Report dated 17.09.2018. 1, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the financial statements of The West Bengal Power Development Corporation Limited for the year ended 31st March 2018 under section 143(6)(a) of the Act. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records. Based on my supplementary audit, I would like to highlight the following significant matters under section 143(6)(b) of the Act which have come to my attention and which in my view are necessary for enabling a better understanding of the financial statements and the related audit report: A. Comments on Financial Position Balance Sheet 1. Current Liabilities Other Current Liabilities (Note-30): ? 0.91 crore The above was understated by ? 46.81 crore due to non-provision of accepted liability towards interest payable to Dongfang Electric Corporation, China, as required under Indian Accounting Standard (Ind AS)-10 prescribed by the Government of India under section 133 of the Companies Act 2013. Consequently, 'Profit for the year' was overstated to the same extent. 2. Other Current Assets (Note 18) Fuel Cost Recoverable: ? 2516.74 crore Fixed Cost Recoverable: T 1247.68 crore The above was overstated by ? 266,08 crorel due to non-consideration of 'late payment surcharge' and 'sale of energy pertaining to earlier years' at the time of determining the Aggregate Revenue requirement ('Fixed Cost Recoverable') as per WBERC Notification dated 25th April 2011. Consequently, 'Profit for the year' was overstated to the same extent. The similar issue, although commented upon by the C&AG of India on the financial statements of the company for 2015-16 & 2016-17, was not rectified during 2017-18. For and on behalf of the Comptroller & Auditor General of India Sd/- Dated at Kolkata (Ms. A. Roy Choudhury) Pr. Accountant General (E&RSA) The 19th December 2018 West Bengal Z 21-73 crnre for late payment surcharge (LPSC) and ! 22753 crore as sale of energy pertaining to earlier years and T 16.82 crore being LPSC for 20)17-18. 56 33rd Annual Report 2017-18 WB3PDCL REPLIES TO THE COMMENTS OF THE COMPTROLLER & AUDITOR GENERAL OF INDIA VIDE MEMO NO OA (ESA-11)/ACCTTS/WBPDCI/2017-18/1845 DATED 19.12.2018 ON THE ACCOUNTS OF THE WBPDCL FOR THE FINANCIAL YEAR 2017-18 SL No Audit Observation Management's Reply 1. Current Liabilities Other Current Liabilities (Note-30): Z 0.91 crores The above was understated by Z 46.81 Fact that the Settlement Agreement was drawn with crore due to non-provision of accepted M/s. Dongfang Electric Corporation (DEC), China on 10th May liability towards interest payable to 2018 has been disclosed in Note No 22.1. Also it has been Dongfang Electric Corporation, China, as mentioned therein (Note No 22.1) that necessary accounting required under Indian Accounting effects have been given in the FY 2018-19. Further, adequate Standard (Ind AS)-1 0 prescribed by the disclosure will be made in the Directors' Report for the year. Government of India under section 133 of the Companies Act 2013. Consequently, 'Profit for the year' was overstated to the same extent. 2. Other Current Assets (Note 18) Claim of APR's for the earlier years have been made before Fuel Cost Recoverable: Z 2,516.74 crore Honourable WBERC without deducting "LPSC" &"Non recurring . R7 income arising out of reconciliation with WBSEDCL. Based on the orders received from Honourable WBERC, further course The above was overstated by T 266.08 of action will be initiated as WBERC is the authority to decide crorel due to non-consideration of'late admissibility of an income/expenditure. payment surcharge' and 'sale of energy paer nto eareayearsa e of Late payment surcharge has not been considered in arriving deterining tharler earegatte Rat "Fixed Cost Adjustment claim" as the same is basically reeuiremeningthxed C te Revele irregular/non-recurring in nature. It arises due to delay in peqirement WBERC NiCtion datoeab) as A payment of energy bill beyond statutory credit limit as spelt 2011. out in Power Purchase Agreement between the Buyer & Seller. One time adjustment, if included, as non tariff income will Consequently, 'Profit for the year' was la omsedn n rnflrsls overtatd tothesameextnt.lead to misleading and wrongful results. overstated to the same extent. The similar issue, although commented Non-recurring income arising out of reconciliation with upon by the C&AG of India on the WBSEDCL as on 31/03/2016 cannot be regarded as deductible financial statements of the company for while computing fixed cost adjustment. This is purely an one 205-16 & 2076-17, was not rectified time activity to regularize the ledger balance of the Company. during2077-178. This Credit to Miscellaneous Income is outside the ambit of non tariff income as it is basically an adjustment arising out of transactions pertaining to more than one year. Further, the same is basically irregular/ non-recurring in nature. Generally matching income and expenses are considered while finalizing the value of Annual Performance Review (APR). One time adjustment, if included as non tariff income will lead to misleading and wrongful results. Balance in trade receivable as shown in the balance sheet includes Z 23,950.78 lakhs. 1 273 erore for late payment surcharge (LPSC) and ! 227.53 crore as sale of energy pertaining to earlier years and ! 16.82 crore being LPSC for 2017-18. 33rd Annual Report 2017-18 57 I II WBPDCL Balance Sheet as at 31st March, 2018 ( in Lakhs) Particulars Note No As at As at 31" March 2018 31st March 2017 ASSETS 1 NON-CURRENT ASSETS (a) Property, Plant and Equipment 6 13,30,185.63 13,78,882.12 (b) Capital Work-In-Progress 67,490.26 67,369.77 (c) Other Intangible Assets 7 352.11 69.15 (d) Financial Assets ) Investments 8 492.09 492.09 ii) Trade Receivable 9 589.72 2,358.87 iii) Loans 10 434.62 434.62 iv) Others 11 1,48,366.60 1,49,415.35 (e) Deferred Tax Assets (Net) 12 - - (f) Non Current Tax Assets (Net) 31 6,976.05 7,407.91 (g) Other Non-Current Assets 13 9,288.28 4,305.52 Total Non Current Assets 15,64,175.36 16,10,735.40 2 CURRENT ASSETS (a) Inventories 14 62,523.44 87,293.15 (b) Financial Assets i) Investments - - ii) Trade Receivable 15 2,70,955.38 3,19,820.63 iii) Cash & Cash Equivalents 16 31,210.79 23,442.40 iv) Bank Balances other than (iii) above 17 97,807.49 90,475.05 (c) Current Tax Assets (Net) 31 766.46 - (d) Other Current Assets 18 4,62,317.68 3,02,604.17 Total Current Assets 9,25,581.24 8,23,635.40 Total Assets 24,89,756.60 24,34,370.80 58 33rd Annual Report 2017-18 WB3PDCL Balance Sheet as at 31st March, 2018 (Cont...) (Zin Lakhs) Particulars Note No As at As at 31WMarch2018 311tMarch2017 EQUITY AND LIABILITIES 1 EQUITY (a) Equity Share Capital 19 6,81,753.55 6,19,864.55 (b) Other Equity 20 1,46,878.53 1,61,554.59 Total Equity 8,28,632.08 7,81,419.14 LIABILITIES NON-CURRENT LIABILITIES (a) Financial Liabilities i) Borrowings 21 6,17,990.31 6,73,145.16 ii) Trade Payables - iii) Other Financial Liabilities 22 95,461.54 105,480.22 (b) Provisions 23 68,775.52 63,712.54 (c) Deferred Tax Liabilities (Net) - - (d) Government Grants 24 35,051.81 37,282.83 (e) Other Non Current Liabilities 25 8,732.77 9,065.18 Total Non Current Liabiliies 8,26,011.95 8,88,685.93 CURRENT LIABILITIES (a) Financial Liabilities i) Borrowings 26 2,77,049.95 2,66,631.65 ii) Trade payables 27 2,25,812.82 1,45,247.71 iii) Other Financial Liabilities 28 96,699.37 1,56,148.55 (b) Government Grants 29 2,29,026.48 1,88,520.87 (c) Other Current Liabilities 30 91.38 1,372.18 (d) Provisions 32 6,432.57 5,555.90 (e) Current Tax Liabilities (Net) 31 - 788.87 Total Current Liabilities 8,35,112.57 7,64,265.73 Total Equity & Liabilities 24,89,756.60 24,34,370.80 The accompanying notes 1 to 67 are integral part of the financial statements As per our report of even date. For SRI Associates For and on behalf of the Board of Directors Firm Registration No.- 305109E Chartered Accountants Sd/- Sd/- Sd/- Sd/- Ismat Pasha Amit Bhattacharyya Debkumar Gupta Santanu Basu Partner Company Secretary Director (F&A) Chairman and Managing Director Membership No.013280 Date : 17.09.2018 Place: Kolkata 33rd Annual Report 2017-18 59 WBPDCL Statement of Profit and Loss for the year ended 31st March, 2018 (Z in Lakhs) For the year For the year Particulars Note ended ended No 31 st March, 2018 315 March, 2017 I Revenue from Operations 34 9,13,345.42 8,71,831.93 II Other Income 35 14,438.51 14,940.55 III Total Income (+ II) 9,27,783.93 8,86,772.48 IV EXPENSES Cost of Materials Consumed 36 6,44,777.69 6,32,150.54 Employee Benefit Expenses 37 46,718.06 47,000.70 Finance Costs 38 98,921.81 83,745.46 Depreciation and Amortisation Expenses 6&7 65,192.95 55,791.30 Other Expenses 39 58,895.36 54,372.98 Total Expenses (IV) 9,14,505.87 8,73,060.98 V Profit/(Loss) before Regulatory Income, Exceptional Items and Tax (III -IV) 13,278.06 13,711.50 Regulatory Income/Expenses (Net) VI Exceptional Items VII Profitl(Loss) before Tax (V-VI) 13,278.06 13,711.50 VIII Tax Expenses: Current Tax 2,833.75 2,926.25 Deferred Tax IX Profit/(Loss) for the period from continuing operations (VII -Vill) 10,444.31 10,785.25 X Profit/(Loss) for the period from discontinued operations - - XI Tax expenses of discontinued operation XII Profitl(Loss) from Discontinued operations (after tax) (X - XI) - - XIII Profit for the period (IX + XII) 10,444.31 10,785.25 XIV Other Comprehensive Income A (i) Items that will not be classified to profit and loss - Remeasurement of Defined Benefit Plan (8,277.90) (8,488.90) (ii) Income tax relating to items that will not be classified 1,766.64 1,811.67 to profit and loss B (i) Items that will be classified to profit and loss (i) Income tax relating to items that will be classified - - to profit and loss Total Other Comprehensive Income, Net of Tax (6,511.26) (6,677.23) 60 33rd Annual Report 2017-18 WbP LK L Statement of Profit and Loss for the year ended 31st March, 2018 (Cont....) (T in Lakhs) For the year For the year Particulars Note No ended ended 31st March, 2018 31st March, 2017 XV Total Comprehensive Income for the period (XIII + XIV) (Comprising Profit(Loss) and Other Comprehensive 3,933.05 4,108.02 Income for the period) XVI Earning per Equity Share of par value of Rs. 1000 each (for continuing operation): (1) Basic 6.23 6.83 (2 ) Diluted 6.23 6.83 XVII Earning per Equity Share (for discontinued operation): (1) Basic - - (2) Diluted - - XVIII Earning per Equity Share (for continuing and discontinued operations): (1) Basic 6.23 6.83 (2) Diluted 6.23 6.83 The accompanying notes 1 to 67 are integral part of the financial statements As per our report of even date. For SRI Associates For and on behalf of the Board of Directors Firm Registration No.- 305109E Chartered Accountants Sd/- Sd/- Sd/- Sd/- Ismat Pasha Amit Bhattacharyya Debkumar Gupta Santanu Basu Partner Company Secretary Director (F&A) Chairman and Managing Director Membership No.013280 Date: 17.09.2018 Place: Kolkata 33rd Annual Report 2017-18 61 WB PDC I Cash Flow Statement for the year ended 31st March, 2018 (Z in Lakhs) For the year For the year Particulars ended ended 31s' March,2018 31st March, 2017 CASH FLOW FROM OPERATING ACTIVITIES Profit Before Tax 13,278.06 13,711.50 Adjustment for: Depreciation 65,192.95 55,791.30 Grant to the extent of Depreciation (357.35) (356.55) Amortisation of lease hold land 11.32 11.32 Provision for Employee Benefits (366,16) (63.17) Fly ash Utilisation Reserve Fund - 422.26 Sundry Balances & Provisions written back (5,462.29) (254.08) Interest on Borrowings 98,921.81 83,745.46 Interest Income (6,780.31) (7,245.15) Rent from BOBR Wagons (29.60) (29.60) Unrealised foreign exchange (gain)/loss 992.66 (700.43) A. Operating Profit Before Working Capital Change 1,65,401.09 1,45,032.86 Change In Working Capital (Excluding Cash & Cash Equivalents) Trade & Other Receivables (94,310.77) (67,897.66) Trade & Other Payables 59,467.65 (86,932.13) Inventories 24,769.70 14,396.42 B. Change in Working Capital (10,073.42) (1,40,433.37) C. Cash Generated From Operations ( A & 8) 1,55,327.67 4,599.49 D. Adjustment for: Income Tax Paid - E. Net Cash Flow From Operating Activities ( C & D) 1,55,327.67 4,599.49 CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets/Capital work in Progress (41,860.71) (71,945.53) Proceeds from Sale/Purchase of Investments (18,130.66) (89,776.97) Interest Received 3,068.13 8,135.46 F. Net Cash Generated froml(Used in) Investing Activities (56,923.24) (1,53,587.04) NET CASH FLOW FROM FINANCIAL ACTIVITIES Issue of Share Capital 42,957.00 7,560.00 Increase/(Decrease) of Government Grant 53,876.01 1,58,697.87 Advance for Share Capital - 18,932.00 Proceeds from Borrowings (68,434.28) (96,449.49) Interest Paid (1,29,453.07) (1,25,926.00) G. Net Cash Generated froml(Used in) Financing Activities (1,01,054.34) (37,185.62) 62 33rd Annual Report 2017-18 VWBP LK L Cash Flow Statement for the year ended 31st March, 2018 (Cont....) (Z in Lakhs) For the year For the year Particulars ended ended 31st March, 2018 31st March, 2017 H. NET CHANGE IN CASH & CASH EQUIVALENTS (E, F & G) (2,649.91) (1,86,173.17) 1. CASH & CASH EQUIVALENTS: (i) At the end of the Period (2,45,818.41) (2,43,168.50) (ii) At the beginning of the Period (2,43,168.50) (56,995.33) Change in Cash and Cash Equivalents [ 1(i)-(ii) (2,649.91) (1,86,173.17) Note: i) The above Cash Flow has been prepared under the indirect method as set out in Ind AS-7 on Cash Flow Statement. ii) Cash & Cash Equivalent Comprises of: a) Balance with Bank: Current Accounts 22,011.77 23,375.70 Fixed Deposits with original maturity less than 3 months 9,187.63 48.10 b) Cash in hand (As Certified by the Management) 11.39 18.60 c) Cheques in Hand d) Other Bank Balances: Margin Money 20.75 20.75 e) Less: Bank Overdraft and Cash Credit 2,77,049.95 2,66,631.65 TOTAL (2,45,818.41) (2,43,168.50) iii) Previous year's figures have been regrouped/rearranged wherever necessary As per our report of even date. For SRI Associates For and on behalf of the Board of Directors Firm Registration No.- 305109E Chartered Accountants Sd/- Sd/- Sd/- Sd/- Ismat Pasha Amit Bhattacharyya Debkumar Gupta Santanu Basu Partner Company Secretary Director (F&A) Chairman and Managing Director Membership No.013280 Date:17.09.2018 Place : Kolkata 33rd Annual Report 2017-18 63 WBPLDC I Statement of Changes in Equity for the year ended 31st March, 2018 (A) Equity Share Capital For the year ended 31t March, 2018 (! in Lakhs) Balance as at 1 April 2017 Changes in Equity Share Capital during the year Balance as at 31st March 2018 6,19,864.55 1 61,889.00 6,81,753.55 Balance as at 1" April 2016 Changes in Equity Share Capital during the year Balance as at 31 March 2017 5,26,32800 93,536.55 6,19,864.55 (B) Other Equity For the year ended 31 March, 2018 (F in Lakhs) Reserve & Surplus Share Particlars pplicaion Cpital Reserve for Reserve forFlAs Toa Particulars m c n Capital Interest Earned Retained Fl Ash Total money pending Reserve Exigencies as on Investment of Earnings Reserve allotment per order Fund Balance as on 1st April 2017 18,932.01 1,832.00 9,077.82 6,117.50 1,25,173.00 422.26 1,61,554.59 Adjustment for fair value measurement of Security Deposit, Retention Money and Earnest Money Deposit 745.15 745.15 Application money rceived during the year 42.957.00 42.957.00 Converted into Equity Share Capital during the year (61,889.00) (61,889.00) Additions during the year 3,495.82 3,495.82 Utilisation during the year (3,918.08) 3,918.08 Profit for the year 10,44431 10,44431 Transfer to Reserve for Interest Earned on Investment of Fund 1,061.62 (1,061.62) Other comprehensive Income/(loss) for the year - Remeasurement gains/loss on defined benefit plans (6,511.26) (6,511.26) - Fair Value loss on FVOCI financial asset" Balance as on 31.03.2018 0.01 1,832.00 9,077.82 7,179.12 1,28,789.58 - 1,46,878.53 64 33rd Annual Report 2017-18 WBP LK L For the year ended 31"~ March 2017 (T in Lakhs) Reserve & Surplus Particularsappiatoepa Reserve for Reserve for Patiuar apictin Caitl Unforeseen Interest Earned Retained Fly Ash Total money pending Reserve Exigencies as on investment of Earnings Reilsetioe allotment per order FundRerv Balance as on 1 "April 2016 85,976.56 1,832.00 9077.82 5,112.26 121,326.42 219.78 223,544.84 Adjustment for fair value measurement of Security Deposit, Retention Money and Earnest Money Deposit 743.80 743.80 Application Money Received during the year 26,492.00 26,492.00 Converted into Equity Share Capital during the year (93536.55) (93,536.55) P rofit fo r th e yea r 10,785.25 10,785.25 Tra nsfe r to Res erve fo r I nte rest Earned on Investment of Fund 1,005.24 (1,005.24) Other Comprehensive I nco me/0loss) fo r the yea r - Remeasurement gains/loss on defined benefit plans (6,67723) (6,677.23) - Fair Value loss on FVOCI financial asset Additions during the year 3,395.58 3,395.58 Utilisation du ring the year (3,193.10) (3,193.10) B alance as on 31.03.2017 18,932.01 1,832.00 9,077.82 6,117.50 1,25,173.00 422.26 1,61,554.59 Share application money pending allotment: a) During the year the Company has received (a) t 32,951 Ia khs(P.Y: T 9,000 Ia khs )as fresh equity contribution f rom the Government of West Bengal for Unit No. Ill & IV of SgiPP (b) Z NilI lakhs (P.Y:? 8,942 lakhs ) as fresh equity contribution from the Government of West Bengal for Energy Efficient Renovation a nd Modern ization for u nit No.V of BTPS (c) Z 10,000 Ia khs CR.Y. :Z 8,550 lakhs) as fresh equity contrtibution from Government of West Bengal for Renovation and Modernisation of Unit 1, 11 & Ill of KTPS. b) During the year 201 7-18 Company has alloted equity shares in favour of The Governor of West Bengal to the tune of?7 61,889.00 lakhs CR.Y:t 93,536.55 lakhs ) from Share Application Money Pending Allotment. c) Face Value per share is?Z 1000/-. Accordingly, till receipt of further ? 83/-, fractional equity share of ?911-cannot be converted into a fully paid equity share, As per our report of even date. For SRI Associates For and on behalf of the Board of Directors Firm Registration No.- 305109E Chartered Accountants Sd/- Sd/- Sd/- Sd/- Ismat Pasha Amit Bhattacharyya Debkumar Gupta Santanu Basu Partner Company Secretary Director (F&A) Chairman and Managing Director Membership No. 013280 Date : 17.09.2018 Place: Kolkata 33rd Annual Report 2017-18 65 WBPDCL NOTES TO THE FINANCIAL STATEMENTS Note No.1 General Information: The West Bengal Power Development Corporation Limited (WBPDCL), incorporated in 1985 is a fully owned Government of West Bengal Enterprise. WBPDCL is a Generating company as defined under section 2(28) of the Electricity Act 2003. WBPDCL meets nearly 56% of total power requirement of the State of West Bengal. The operations of the Company are governed by the Electricity Act 2003 (Act) and various Rules, Regulations and Policies framed by appropriate authorities. Accordingly, in preparation of the financial statements relevant provisions of the said Act, regulations etc have been considered. WBPDCL has been allotted by the Ministry of Coal, Govt. of India six captive coal mines. Coal produced from these mines will be consumed entirely by the Power Stations of the Company. Note No. 2 Statement of Compliance: The standalone financial statements have been prepared in accordance with Indian Accounting Standards ('Ind AS') notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) (Amendment) Rules, 2016 notified under Section 133 of the Companies Act, 2013 and relevant provisions of the Companies Act 1956, the Companies Act 2013 (to the extent notified and applicable) and provisions of the Electricity Act 2003. Note No. 3 Significant Accounting Policies: 3.1 Basis of preparation of Financial Statements The financial statements of the Company are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) on the accrual basis of accounting and historical cost convention except for certain material items that have been measured at fair value as required by the relevant Ind AS and explained in the ensuing policies below. The Financial statements are presented in Indian Rupees ('INR') and all values are rounded to the nearest lakhs, except otherwise indicated. 3.2 Use of Estimates The preparation of the financial statements requires that the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The recognition, measurement, classification or disclosure of an item or information in the financial statements is made relying on these estimates. The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods. 3.3 Property, Plant and Equipment Tangible Assets & Intangible Assets a) The cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, including relevant borrowing costs for qualifying assets and any expected costs of decommissioning. The generating units have been capitalized considering the above costs on the basis of engineering assessments/certifications. b) In case of commissioned assets, where final settlement of bills with the contractors are pending, capitalization is made on provisional liabilities subject to adjustments, in the year of final settlements. c) Major shutdown or overhaul expenditure is capitalized as the activities undertaken improve the economic benefits expected to arise from the asset. 66 33rd Annual Report 2017-18 WBP LK L NOTES TO THE FINANCIAL STATEMENTS d) Land has been capitalized on payment basis, backed by Record of Right (ROR) issued by respective authorities. e) Intangible Assets which are expected to provide future enduring benefits are stated at cost of acquisition /implementation less accumulated depreciation / amortization. f) An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss. Depreciation/Amortization a) Depreciation has been provided to the extent of 90% of Cost of Assets on straight line method at the rates prescribed by the appropriate authority in accordance with the Electricity Act, 2003. b) In terms of applicable Regulations under the Electricity Act, 2003, depreciation on tangible assets other than freehold land is provided on straight line method on a pro-rata basis at the rates specified therein, the basis of which is considered by the West Bengal Electricity Regulatory Commission (WBERC) in determining the tariff for the year of the Company. c) Land taken on lease is treated as operating lease. Upfront premium paid on procurement of Lease hold land is amortized over the life of the lease and is not considered as Property, Plant & Equipment. d) Intangibles Assets comprising of software are amortized on Straight Line method over a period of three years. Capital Work-in-Progress a) Assets in the course of construction are capitalized in the assets under capital work in progress account (CWIP) b) Capital Work-in-Progress is stated at cost, incurred during pre- operative/pre-commissioning period. c) All Pre-operative/Pre-commissioning expenditure and trial run expenditure (Net of Realization) accumulated as Capital-Work-in Progress is allocated on pro-rata basis depending on the base cost of the assets. d) In respect of supply-cum-erection contracts, the value of supplies received at site is treated as Capital Work-in- Progress. e) Incidental expenditure during construction is apportioned to Capital Work-in-Progress on the basis of accretion thereto. Interest during construction has been taken into consideration for the purpose of valuation of Capital Work-in-Progress. f) Deposit work/Cost plus contracts are accounted for on the basis of utilization certificates received from the contractors g) Claims for price variations, if any, in case of contracts are accounted for on acceptance basis. Impairment of Tangible and Intangible assets At the end of each reporting period, the Company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest Company of cash-generating units for which a reasonable and consistent allocation basis can be identified. Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired. Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. 33rd Annual Report 2017-18 67 WB PDCL NOTES TO THE FINANCIAL STATEMENTS If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in Statement of Profit and Loss. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in Statement of Profit and Loss. 3.4 Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in statement of profit and loss in the period in which they are incurred. 3.5 Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and demand deposits with an original maturity of three months or less and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value net of outstanding bank overdrafts as they are considered an integral part of the Company's cash management. 3.6 Inventories Cost of inventories includes cost of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Coal & Oil are valued consistently at landed cost on Monthly Weighted Average Basis. Inventories of Spares & Others are valued: (i) at Basic Price plus 15% towards Excise Duty, Sales Tax, Insurance & Freight in respect of KTPS upto 31st March 2016 and thereafter at landed cost on weighted average basis. (ii) at landed cost on Weighted Average Basis in respect of all other Power Stations. 3.7 Grants Government Grants relating to income are determined and recognized in the profit and loss over the period necessary to match them with the cost that they are intended to compensate and presented within other income. Government Grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit and loss on a straight line basis over the expected life of the related assets. The benefit of a Government loan at a below market rate of interest is treated as a Government Grant. 3.8 Foreign currency transactions: The functional currency of the Company is determined on the basis of the primary economic environment in which it operates. The functional currency of the Company is indian National Rupee (IN R). Transactions in foreign currency are accounted for at the exchange rates prevailing on the date of transactions. Transactions remaining unsettled are translated at the exchange rate prevailing at the end of the financial year. Exchange gain or loss arising on settlement/translation is recognized in Statement of Profit and Loss. 3.9 Lease A lease is classified at the inception date as a finance lease or an operating lease. Leases under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. All other leases are classified as operating leases. 68 33rd Annual Report 2017-18 WbP LK L NOTES TO THE FINANCIAL STATEMENTS The Company as lessor: Rental income from operating leases is generally recognised on a straight-line basis over the term of the relevant lease except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term. The Company as lessee: Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments (discounted at the interest rate implicit in the lease or at the entity's incremental borrowing rate). The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in Statement of Profit and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's general policy on borrowing costs. Contingent rentals are recognized as expenses in the periods in which they are incurred. Lease payments under an operating lease shall be recognized on a straight-line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessor's expected inflationary cost increases, such increases are recognized in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. Accounting for arrangements in the nature of lease: Under appendix C to Ind AS17, an entity may enter into an arrangement comprising a transaction or a series of related transactions, that do not take the legal form of lease but conveys a right to use an asset in return for a payment or series of payments. Arrangements meeting these criteria should be identified as either operating leases or finance leases. For determining whether an arrangement is, or contains, a lease shall be based on the substance of the arrangement and requires an assessment of whether: - fulfilment of the arrangement is dependent on the use of specific asset or assets, * the arrangement conveys a right to use the asset. The Company enters into agreements, comprising a transaction or series of related transactions that does not take the legal form of a lease but conveys the right to use the asset in return for a payment or series of payments. In case of such arrangements, the Company applies the requirements of Ind AS 17 - Leases to the lease element of the arrangement. For the purpose of applying the requirements under Ind AS 17. - Leases, payments and other consideration required by the arrangement are separated at the inception of the arrangement into those for lease and those for other elements. 3.10 Investment Investment in subsidiaries, jointly controlled entities and associates are carried at deemed cost at transition date and are tested for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of investment exceeds it recoverable amount. Investment in shares and bonds are measured at fair value through Profit and Loss Account. 3.11 Financial Asset Financial assets are recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets other than trade receivables are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the Statement of Profit and Loss. Classification of financial assets depends on the company's business model for managing financial assets and the contractual terms of the cash flow. 33rd Annual Report 2017-18 69 A,B PPC I NOTES TO THE FINANCIAL STATEMENTS Financial assets at amortised cost Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at fair value through profit or loss (FVTPL) Financial assets included within fair value through profit and loss category are measured initially as well as at each reporting period at fair value plus transaction costs as applicable. Fair value movement are recorded in the statement of profit and loss. Impairment of Financial Assets The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Impairment methodology applied depends on whether there has been significant increase of credit risk. 3.12 Financial Liabilities All financial liabilities are measured at amortised cost using the effective interest method 3.13 Financial guarantee contracts A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument. Financial guarantee contracts issued by a Company are initially measured at their fair values. 3.14 Revenue Recognition: Sale of Electricity: a) Sale of electricity is accounted for based on tariff rates approved by WBERC. In case where tariff rates have not been approved or agreed with the beneficiaries, provisional rates are adopted. b) Revenue from Sale of Electricity also includes "Fuel Cost Adjustment"for the year pending recovery. The aforesaid cost is recoverable through future Fuel Cost Adjustment Order of WBERC. Until then, they are carried forward as "Fuel Cost Recoverable" under Other Current Assets. c) Revenue from Sale of Electricity also includes "Fixed Cost Adjustment" for the year pending recovery. The aforesaid cost is recoverable through future Fixed Cost Adjustment Order of WBERC. Until then, they are carried forward as "Fixed Cost Recoverable" under Other Current Assets. d) The surcharge on late/non-payment of dues by debtors for sale of electricity is accounted for on accrual basis. Other Income: e) Income from investments and deposits are accounted for on accrual basis inclusive of related tax deducted at source, where applicable. Sale of fly ash f) Amount collected on account of Sale of Fly Ash is kept under separate accounting head " Fly Ash Utilisation Reserve Fund" in accordance with the guidelines issued by MOE& FCC dated 3rd November 2009. The fund is being utilized for expenditure incurred on the development of infrastructure or facility, promotion & facilitation activities for use of fly ash. Others: g) Interest on House Building Loans granted to employees, Insurance, Rent from residential quarters from employees and contractors and other claims are accounted for on cash basis. Interest income arising from financial assets are accounted for using amortized cost method. 70 33rd Annual Report 2017-18 WbP LK L NOTES TO THE FINANCIAL STATEMENTS 3.15 Expenditure Claims towards Grade Slippage, Stone and Short supply of Coal have been taken into account based on actual claims lodged and settled. 3.16 Employee Benefits: A. Short Term Employee Benefits The Company recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as liability (accrued expense). B. Post Employment Employee Benefits: i) Defined Contribution Plans: The contributions towards Contributory Provident Fund and Employees'Pension Fund are accounted for on accrual basis and remitted regularly to the Contributory Provident Fund Trust / Employees' Provident Fund Organization respectively as per prevailing rates, ii) Defined Benefit Plans: The Company has defined benefit plans for Post Employment Benefits in the form of Gratuity (Gratuity GPF) and Pension (Pension GPF) for employees opted for General Provident Fund. Liability for above defined benefit plans are provided on the basis of valuation, as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit (PUC) method. The liability for retirement benefits towards Gratuity as per Payment of Gratuity Act, 1972, in respect of employees covered under Contributory Provident Fund Act 1952 is funded with LIC (Gratuity CPF), through creation of a trust, under Group Gratuity Scheme. Contribution is paid to LIC as per their computation, which is determined after Actuarial Valuation done by LIC every year at the Balance Sheet date. Additional liability, if any, arising after retirement of an employee is accounted for in the year of payment to the employee. C. Other Long-term Employee Benefit: Liability for Leave Encashment is provided on the basis of valuation as at the Balance Sheet date carried out by an independent actuary. PUC actuarial method is used to measure the Plan's liabilities, including those to death- in-service and incapacity benefits.The Plan Liability is the actuarial present value of the "projected accrued benefits" as of the beginning of the year for active members. D. The actuarial gains and losses arising during the year are recognized through Other Comprehensive Income. 3.17 Deferred Taxation: Provision for deferred taxation is made at the current rates of taxation on all timing differences to the extent it is probable that a liability or asset will crystallize. Deferred tax assets are recognized subject to the consideration of prudence and are periodically reviewed to reassess realization thereof. Deferred Tax liability or asset will give rise to actual tax payable or recoverable at the time of reversal thereof Since tax on profits forms part of chargeable expenditure under the applicable regulations, deferred tax liability or asset is recoverable or payable through future tariff. Hence, recognition of deferred tax asset or liability is made with corresponding provision of liability or asset as the case may be. 3.18 Regulatory Deferral Account Balances The Company is a rate regulated entity and has elected to adopt Ind AS 114, Regulatory Deferral Accounts. 3.19 Provisions, Contingent Liabilities and Contingent Assets A provision is recognized where there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is discounted to its present value and is determined based on the best estimate required to settle the obligation at the year end date. These are reviewed at each year-end date and adjusted to reflect the best current estimate. 33rd Annual Report 2017-18 71 WBPDCL NOTES TO THE FINANCIAL STATEMENTS A disclosure for contingent liabilities is made where there is- a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or a present obligation that arises from past events but is not recognized because: it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or the amount of the obligation cannot be measured with sufficient reliability. A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each reporting period. Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. 3.20 Materiality Ind AS applies to items which are material. Management uses judgement in deciding whether individual items or groups of item are material in the financial statements. Materiality is judged by reference to the size and nature of the item. The deciding factor is whether omission or misstatement could individually or collectively influence the economic decisions that users make on the basis of the financial statements. Further the Company may also be required to present separately immaterial items when required by law. Note 4 Summary of significant judgment and assumptions In the application of the Company's accounting policies, the Directors of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and associated assumptions are continuously evaluated. The areas involving critical estimates are: Estimation of useful life on intangible assets (3.3 Estimates used in Actuarial Valuation of Employee Benefits (3.16) Estimates of Fuel Cost Adjustment and Fixed cost Adjustment Claim (3.14) Estimation of contingent liabilities Note 5 Standards issued but not yet effective In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2018, notifying amendments to Ind AS 12,'Income Taxes'& Ind AS 21 'Foreign Currency Transactions'The amendments are applicable from April 1, 2018. The company is evaluating the requirements of the amendment and its effect on the financial statements. On March 28, 2018 Ministry of Corporate Affairs (MCA) has notified Ind AS 115, Revenue from Contracts with Customers which will be effective from April 1, 2018. 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(P.Y.:27,70,200 Nos.) fully pald-up shares of ? 10/- each in Bengal Emta Coal Mines Ltd. 277.02 277.02 Less: Pre-acci u [sit I o n Di vi de n d 12.71 12.71 (A) 264.31 264.31 ................................................................. - Investment in West Bengal Green Energy Development Corporation Ltd. 225,00 225,00 22,50,000 Nos. (P.Y.: 22,50,000 Nos) fully paid-u p shares of Z 10/- each, (B) 225.00 225.00 - Investment in Bengal Birbhum Coal Fields Ltd 2.78 2.78 27,783 Nos, (P.Y. 27,783 Nos) fully pad-up shares of T 10/- each, (C) 2.78 2.78 Total (A+B+Q 492.09 492.09 &I Aggregate amount of Unquoted Investments 492.09 492.09 ................................................................ . 8,2 Aggregate provision for diminution in value of Investments - &2A In respect of Company's Investments in West Bengal Green Energy Development Corporation Ltd.determination of value of investment, held as on balance sheet date could not be made, in the absence of availability of Audited Balance Sheet of West Bengal Green Energy Development Corporation Ltd. as on 31.03.201 S. 8,2,2 In respect of Company's investment in Joint Venture Compa ny, M/s Bengal EMTA Coal Mines Limited (BECML), no provision has been made for diminution in value of investment, arising out of cancellation of r) 1 t)i n g rights w.e.f. 1 ' April 2015, since the compens aton to be received by BECM L, in-terms of the Coal Mines (Special Provisions) Act, 2015, is likely to cover the erosion, if any, in the value of Investment. 9. NON CURRENT FINANCIAL ASSET-TRADE RECEIVABLE (Z in Lakhs) Particulars 31'tMarch,2018 31-OMarch,2017 Long Term Trade Receivables - Unsecured, considered good Arrear Receivable 38,359.26 73,782,08 Less: Arrear Receivable classified as Current transferred 37,769.54 71,423,21 to Note No: 15 Total 589.72 2,358.87 ................................................................... Additional Disclosures 9.1 Arrear Receivable amounting to ? 38,359.26 lakhs (P.Y.: ? 73,782.08 lakhs) represents: 9.1.1 T 2,358.87 lakhs (P.Y.: T 4,128.02 lakhs) towards Arrear Transmission Cost duly approved by WBERC, out of which Z 1,769.15 lakhs (P.Y.: T 1,769.15 lakhs) has been shown under Trade Receivable v1de Note No-1 5 and Z 589.72 lakhs (P.Y.: Z 2,358.87 lakhs) under Non Current Financial Assets-Trade Receivable vide note no 9. 9.1.2 Z Nil lakhs (P.Y t 19,632.30 lakhs) towards price revision for new units at BkTPP, SgTPP & 5TPS recoverable in 72 monthly Installments. Installments recoverable within next 12 months amounting to ? Nil lakh (P.Y.: ? 19,632.30 lakhs ) are shown underTrade Receivable vide Note No. 15 9,13 T 17,553.16 lakhs (P.Y.: T 25,075,94 lakhs ) towards FCA 2012-T3 recoverable in 30 monthly instalments. Instalments recoverable within next 12 months amounting to Z 17,553.16 lakhs (PX ? 25,075,94 [akhs) has been shown under Trade receivable vide Note No. 15. 9.1.4 Z 18,447.23 lakhs (P.Y.: ? 24,945.82 lakhs) towards recovery of energy charges and capacity charges of Unit no III & IV of Sgtpp with effect from July 2016 has been shown underTrade Receivable vide note no 15. 76 33rd Annual Report 2017-18 vW,bP LK L NOTES TO THE FINANCIAL STATEMENTS 10. NON CURRENT FINANCIAL ASSETS - LOAN (Z in Lakhs) Particulars 31s March, 2018 31st March, 2017 WBREDA 10.00 1000 Engineering College- BKTPP (Refer note no 44) 379.85 379.85 Engineering College- KTPS 44.77 44.77 Total 434.62 434.62 11. NON CURRENT FINANCIAL ASSETS - OTHERS (Z in Lakhs) Particulars 31 March,2018 31 March,2017 Deposits (A) 190.89 177.98 Other Advances (8) 507.65 507.65 Fixed Deposits earmarked for Contingency Reserves 14,443.24 14,443.24 Add: Interest on Fixed Deposit 1,385.25 429.80 (C) 15,828.49 14,873.04 Fixed Deposit against Arbitration (Refer Note No: 22.1) 13,412.92 13,374.79 Add: Interest on Fixed Deposit 1,575.64 664.11 (D) 14,988.56 14,038.90 Fixed Deposit - GPF 1,11,710.14 1,00,890.47 Add: Interest on Fixed Deposit 6,777.35 3,767.95 (E) 1,18,487.49 1,04,658A2 Bank Deposits* (F) 34.28 93.84 Other Receivable (G) 3,084.45 3,785.67 Claims Recoverable (H) (7,393.21) 5,525.60 Interest accrued but not due on fixed deposits (i) 2,638.00 5,754.25 Total (A+B+C+D+E+F+G+H+i) 1,48,366.60 1,49,415.35 *Represents deposits with more than 12 months maturity Additional Disclosures 11.1 Other Advances include Z 414.00 lakhs (P.Y.: Z 414.00 lakhs) with Eastern Railway against railway freight in respect of BkTPP, BTPS and SGTPP Further Z 100.00 lakhs (P.Y: Z 100.00 lakhs) deposit given by Govt. of West Bengal has not been accounted for in respect of BkTPP due to non- receipt of Govt. of West Bengal Order in this regard. 12. DEFERRED TAX ASSET/ LIABILITY (NET) (T in Lakhs) Particulars 31st March, 2018 31st March, 2017 Deferred Tax Liability WDV of Fixed Assets as per Accounts 1,30,537.74 13,78,951.28 Less: WDV of Fixed Assets as per Income Tax Act 7,60,457.12 8,70,785.42 Gross Deferred Tax Liability (A) 5,70,080.62 5,08,165.86 Deferred Tax Asset Accumulated unabsorbed depreciation as per Income Tax Act (3,07,224.41) (2,51,315.99) Gross Deferred Tax Asset (8) (3,07,224.41) (2,51,315.99) (C) = (A - B) 2,62,856.21 2,56,849.87 Net Deferred tax Liability on (C) 90,969.27 88,890.60 Less: Recoverable 90,969.27 88,890.60 Net Deferred tax Liability carried to Balance Sheet Additional Disclosures 12.1 Deferred Tax liability or asset will give rise to actual tax payable or recoverable at the time of reversal thereof. Since tax on profits forms part of chargeable expenditure under the applicable regulations, deferred tax liability or asset is recoverable or payable through future tariff Hence, recognition of deferred tax asset or liability is made with corresponding provision of liability or asset as the case may be. 33rd Annual Report 2017-18 77 NOTES TO THE FINANCIAL STATEMENTS 13. OTHER NON-CURRENT ASSETS (Z in Lakhs) Particulars 311 March, 2018 31t March, 2017 Capital Advances (A) 7,592.38 2,618.17 Arbitration A/C DEC Receivable (Refer Note No: 22.2) 497.57 480.60 Arbitration A/C SPML Receivable ( Refer Note No: 22.2) 107.29 104.39 (B) 604.86 584.99 Prepaid Rent on Leasehold Land/Lease Prepayments (C) 1,091.04 1,102.36 TOTAL (A+B+C) 9,288.28 4,305.52 Additional Disclosures _______ 13.1 On adoption of Ind AS, Lease Hold land previously shown as a fixed asset under IGAAP is now being derecognised and lease premium paid is now amortised over the lease period. 14. INVENTORIES (T In Lakhs) Particulars 31st March, 2018 31t March, 2017 (As Certified by the Management) Coal 10,669.11 39,275.02 Coal in Transit 3,265.73 2,896.18 Oil 8,460.10 7,950.46 Stock of Stores & Spares 40,128.50 37,171.49 62,523.44 87,293.15 Additional Disclosures 14.1 Coal & Oil & Inventory of Stores & Spares are valued consistently at landed cost on weighted average basis. 15. TRADE RECEIVABLES (in Lakhs) Particulars 31st March, 2018 31st March, 2017 Outstanding for a period exceeding six months from due date of payment - Unsecured, considered good - Other Receivables - Unsecured, considered good Arrear Receivable (Refer Note No: 9) 37,769.54 71,423.21 OtherTrade Receivable 2,33,185.84 2,48,39742 Total 2,70,955.38 3,19,820.63 16. CASH AND CASH EQUIVALENTS (T in Lakhs) Particulars 31st March, 2018 31st March. 2017 Cash & Cash Equivalents Balances with banks in: - Current Accounts 22,011.77 23,375.70 - Fixed Deposits with original maturity upto than 3 months 9,187.63 48.10 Cash in hand (As Certified by the Management) 11.39 18.60 Total 31,210.79 23,442.40 17. OTHER BANK BALANCES (? in Lakhs) 31st March, 2018 31t March, 2017 Other Bank Balances: Fixed Deposits with original maturity of more than 3 months 8,949.02 8,424.87 Fixed Deposits given as lien 88,837.72 82,029.43 Margin Money 20.75 20.75 Total 97,807.49 90,475.05 78 33rd Annual Report 2017-18 I WBPDCL NOTES TO THE FINANCIAL STATEMENTS 18. OTHER CURRENT ASSETS ( in Lakhs) Particulars 31s March, 2018 31t March, 2017 - Advances to Coal Parties 78,068.24 1 7,737.00 - Advances to Contractors & Suppliers 5,775.46 3,096,76 - Advances to Employees 644.01 404.86 - Prepaid Insurance 1,336.71 1,216.95 - Prepaid Expenses 50.49 277.56 - Others Advances 0.68 1A4 Costs Recoverable (Refer Note No: 34.6 read with Note No. 3.14(b) & (c) of Significant Accounitng Policies) - Fuel Cost Recoverable 2,51,674.47 2,16,592.11 - Fixed Cost Recoverable 1,24,767.62 63,277A9 Total 4,62,317.68 3,02,604.17 19. SHARE CAPITAL (? in Lakhs) Particulars 31't March, 2018 31It March, 2017 Authorised shares 8,00,00,000 (RY: 8,00,00,000) Equity Shares of ! 1000/- each 8,00,000.00 8,00,00000 Total Authorised Capital 8,00,000.00 8,00,000.00 Issued, subscribed and fully paid-up shares 6,81,75,355 (P.Y.: 6,19,86,455 ) Equity Shares of Z 1000/- each, fully paid up 6,81,753.55 6,19,864.55 Total Issued, Subscribed and Fully Paid-up Share Capital 6,81,753.55 6,19,864.55 19.1 Reconciliation of the shares outstanding at the beginning and at the end of the reporting period Equity Shares (Nos) 31st March, 2018 31Vt March, 2017 At the beginning of the year 61,986,455 52,632,800 Issued during the period 6,188,900 9,353,655 Outstanding at the end of the year 68,175,355 61,986,455 Additional Disclosures 19.1.1 During the year Company has alloted equity shares in favour of The Governorof West Bengal to the tune of ! 61,889.00 lakhs (P.Y.: Z 93,536.55 lakhs) from Share Application Money Pending Allotment. 19.2 Terms/Rights attached to equity shares 19.21 The Company has only one class of equity shares having a par value of Z1000/- per share, Each holder of equity shares, present in person or proxy, is entitled to one vote for each share held by him.The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 19.2.2 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the capital paid up at the commencement of winding up. 19.3 Details of shareholders holding more than 5% shares in the Company. Equity shares of Z1000/- each fully paid 31st March 2018 31 March 2018 31 " March 2017 31a March 2017 % Nos. % Nos. The Governor of West Bengal 99.99 68,175,245.00 99.99 61,986,345.00 33rd Annual Report 2017-18 79 WH PO LKI NOTES TO THE FINANCIAL STATEMENTS 20. OTHER EQUITY (f in Lakhs) Particulars 31s March, 2018 31 March, 2017 Capital Reserve Balance as per the last financial statements 1,832.00 1,832.00 Add: Received during the year Closing Balance (A) 1,832.00 1,832.00 Reserve for Unforeseen Exigencies as per Order Balance as per the last financial statements 9,077.82 9,077.82 Add: Amount transferred from surplus balance in the statement of profit and loss - Closing Balance (B) 9,077.82 9,077.82 Reserve for Interest Earned on Investment of Fund (Unforseen Exigencies) Interest earned 6,117.50 5,112.26 Add: Interest earned during the year 1,061.62 1,005.24 Closing Balance (C) 7,179.12 6,117.50 Fly Ash Utilisation Reserve Fund Balance as per last financial statements 422.26 219.78 Additions during the year -Transfer from Revenue from Operation 3,495.82 3,395.58 Utilisation during the year 3,918.08 (3,19310) Closing Balance (D) - 422.26 Surplus in the statement of Profit and Loss Balance as per last financial statements 1,25,173.00 1,21,326.42 Profit for the year 10,444.31 10,785.25 Less: Appropriations Transfer to Reserve for Interest Earned on Investment of Fund (1,061.62) (1,005.24) Transfer from OCI (6,511.26) (6,677.23) Add: Fair Value Adjustment 745.15 743.80 Net Surplusl(Deficit) in the Statement of Profit and Loss (E) 1,28,789.58 1,25,173.00 Share application money pending allotment Nil (RY: 18,93,200) Equity Shares of T 1000/- each - 18,932.00 Fractional Equity Share (T 917) 0.01 0.01 Total Share Application Money Pending Allotment (F) 0.01 18,932.01 Total (A+B+C+D+E+F) 1,46,878.53 1,61,554.59 Additional Disclosures 20.1 Capital Reserves includes: 20.1.1 T 1,095.00 lakhs (P.Y.: Z 1,095.00 lakhs) being the transfer of West Bengal Government's Donation Fund, contributory in nature from the promoter, for construction of Bakreswar Thermal Power Project along with interest earned thereon.The above donation fund being not related to any specific fixed assets, has been shown as Capital Reserve. 20.1.2 Z 500.00 lakhs (P.Y.: ? 500.00 lakhs) towards transfer of Government of West Bengal loan into Grant vide GOWB Order No 36-Power/Il/1 B- 03/2001 dated 26.12.2005 as per terms and conditions fixed by the Government of India for the Accelerated Power Development and Reform Programme (APDRP) scheme. 20.1.3 T 237.00 lakhs (PY.: T 237.00 lakhs) towards allotment of 23,70,000 nos. unquoted equity shares of T 10 each by Bengal EMTA Coal Mines Ltd. for consideration other than cash being Captive Mining Right. 20.2 The Company has not appropriated any sum, out of the current year's profit towards Reserve for Unforeseen Exigencies as per direction vide Para No.5.12.2 of the Tariff Order dt. 01.12.2012 ofWBERC. 20.3 The Company has recognized during the year interest income amounting to T 1,061.62 lakhs (P.Y.: ? 1,005.24 lakhs) on Investment on Fixed Deposit earmarked as Reserve for Unforeseen Exigencies in terms of the Regulations of WBERC (Terms and Condition of Tariff) Regulations 2011, as amended. 20.4 Pursuant to Gazette Notification dated 3d November 2009, issued by the Ministry of Environment and Forest (MOEF), Government of India (GOI), the amount collected from sale of fly ash and fly ash based products should be kept in a separate account head and shall be utilized only for the development of infrastructure or facility, promotion & facilitation activities for use of fly ash until 100 percent fly ash utilization level is achieved. For the period from April 2017 to March 2018 proceeds of f 3,495.82 lakhs (P.Y.: Z 3,395.58 lakhs) from sale of fly ash have been transferred to fly ash utilisation reserve fund. Relevant expenses have been reduced from the said Fund.This presentation and disclosure are in accordance with the guidelines issued by MOE & F dated 03-11-2009. 80 33rd Annual Report 2017-18 WBtPDCL NOTES TO THE FINANCIAL STATEMENTS 21. NON CURRENT FINANCIAL LIABILITES-LONG TERM BORROWINGS (?in Lakhs) Current Maturities Non Current Maturities Particulars 31 March 2018 31"March 2017 31 March 2018 31V March 2017 Term Loans (Secured) Term loans from Banks(Secured) -from Allahabad Bank 5,055.00 8,010.00 - 5,244.00 - from Power Finance Corporation Ltd. 52,860.26 46,100.05 5,69,614.20 6,05,690.60 - from Rural Electrification Corporation Ltd. 7,500.25 7,500.25 39,376.31 46,876.56 -from Punjab National Bank - 617.78 - -from Indian Overseas Bank - (20.86) - - from United Bank of India Loan for BkTPP - 4,135.44 - - from State Bank of India 3,334.00 5,016.00 - 3,334,00 - from WBIDFC 3,000.00 3,000.00 8,999.80 12,000.00 Total 71,749.51 74,358.66 6,17,990.31 6,73,145.16 Less: Amount disclosed under the head Current Financial Liabilities-Others as Current maturities (Refer Note 28) (71,749.51) (74,358.66) - - Total - - 6,17,990.31 6,73,145.16 22. NON CURRENT FINANCIAL LIABILITIES - OTHERS (T in Lakhs) Particulars 31s March, 2018 31t March 2017 Retention Money & Deposits 6,802.43 8,935.79 (A) 6,802.43 8,935.79 Liability Against Arbitration Arbitration Payable- DEC 8,488.50 8,488.50 Add:Interest on Fixed Deposit 6,512.37 5,480.14 Arbitration - Sarda Energy 500.00 500.00 Add:Interest on Fixed Deposit 152267 131,78 (B) 15,653.54 14,600.42 Liability Against Projects/Capital Works 49,985.69 60,311.97 Liability Against Sales 5,533.48 5,533.48 Others 10.72 10.72 (C) 55,529.89 65,856.17 - General Provident Fund (Refer Note No.47 and 48) (D)L 17,475.68 16,087.84 Total (A+B+C+D) 95,461.54 1,05,480.22 Additional Disclosures 22.1 Arbitration- Dongfang Electric Corporation (DEC) payable includes ? 8,488.50 lakhs (PY.: ? 8,488.50 lakhs) received and retained on account of invocation of Bank Guarantee in respect of Unit Nos. I & 11 of SgTPP due to non-performance of contract as per agreement. As per direction of the Hon'ble Calcutta High Court,the said amount has been kept with the Allahabad Bank, Stephen House Branch, Kolkata & HDFC Bank, Stephen House Branch, Kolkata and shown as Fixed Deposits under' Non Current Financial Asset-Others '(Refer Note No 11). Pending award on appeal against the Arbitral Award of ICC upto 31.03.2018, the Company has not recognized interest on Fixed Deposit in the "Statement of Profit & Loss Account" amounting to T 6,512.37 lakhs (P.Y.: T 5,480.14 lakhs). It may have consequential impact on the reported financials. The Company has entered into a Settlement Agreement dated 10th May 2018 with Dongfang Electric Corporation (DEC) for resolving the issue out of Court. Necessary accounting effects have been given in the FY 201.8-19. 22.2 Further, an amount of ? 604.86 lakhs ( P..:? 584.99 lakhs) has been shown under Other Non Current Asset (Note No.-13) pertaining to expenses incurred in connection with the ongoing arbitration with DEC and SPML. In the opinion of the management, the said amount is recoverable and/or adjustable. In view of the settlement agreement with DEC as mentioned in Note 22.1 above, necessary accounting effect has been given in the FY 2018-19. 22.3 Arbitration- Sarda Energy and Minerals Ltd. payable includes ! 500.00 lakhs (P.Y: !500 lakhs) received and retained on account of invocation of Bank Guarantee due to non performance of contract for dismantling, demolition and disposal of decommissioned 4 x 120MW Units of Santaldih Thermal Power Station. As per direction of the Hon'ble Calcutta High Court, the said amount has been kept with the Allahabad Bank, Stephen House Branch, Kolkata and shown as Fixed Deposits under Non Current Financial Asset-Others (Refer note no 11). Pending award of arbitration, the Company has not recognized interest on Fixed Deposit in the "Statement of Profit & Loss Account" amounting to T 152.67 lakhs (PY t 131.78 lakhs). 22.4 During the financial year 2017-18 the Company has invoked BankGurantee amounting to ? 225.91 lakhs (PY:? Nil lakh) for non performance of contract undertaken by M/s. Gupta Global Resources Pvt Ltd and the same is shown under Non Current Liability-Provisions (Refer note no 23), pending final settlement. Bank guarantee invoked for non performance of contract by M/S Doshian Vedia Water Solutions Pvt Ltd during FY 2017-18 amounting to Z462.30 lakhs has not been recorded as liability. 22.5 Capitalizations is made based on the provisional liabilities amounting to ! 49,985.65 lakhs (PY.:! 60,311.97 lakhs) as shown under Liabilities for Projects/Capital Works subject to reconciliation and final settlement of bills with the Vendors / Contractors. 33rd Annual Report 2017-18 81 WBPLCL NOTES TO THE FINANCIAL STATEMENTS 23. NON CURRENT LIABILITIES - PROVISIONS (7 in Lakhs) Particulars 31 March, 2018 31s March, 2017 Provision for employee benefits (Refer Note NoA7 and 48) - Provision for Pension 59,96351 55,52835 Less: Amount disclosed under the head Short Term Provisions as Current maturities (Note No: 32) (4,875,22) (4,168.87) (A) 55,088.29 51,359.48 - Provision for Gratuity 7,299.18 7,862.91 Less: Amount disclosed under the head ShortTerm Provisions as Current maturities (Note No: 32) (851.69) (1,035.97) (B) 6,447A9 6,826.94 - Provision for Leave Encashment 7,719.49 3,679.18 Less: Amount disclosed under the head Short Term Provisions" as Current maturities (Note No: 32) (705.66) (351.06) (C) 7,013.83 3,328.12 Liability Against Bank Guarantee (D) 225.91 2,198.00 Total (A+B+C+D) 68,775.52 63,712.54 24. GOVERNMENT GRANTS (7 in Lakhs) Current Maturities Non Current Maturities Particulars 31March 2018 31' March 2017 31 March 2018 31nMarch 2017 Loan from Govt. of West Bengal - for Bandel Project EERM 6,409.76 4,82100 29,659.38 26,959.27 - for Working Capital 10,042.84 25,000.00 - - 16,452.60 29,823.00 29,659.38 26,959.27 Less: Amount disclosed under the head Government Grant" as Current maturities (Note 29) 16,452.60 29,823.00 - - - - 29,659.38 26,959.27 Government Grant Liability against Project-EERM- - - 5,392.43 10,323.56 5,392.43 10,323.56 Additional Disclosures Total - - 35,051.81 37,282.83 24.1. Below market rate' loans granted by the Government of West Bengal has been recognised as Government Grant in terms of nd AS 20. 24.2 During the finnacial year 2016-17 Company has repaid entire loan balance of Bakreswar Unit 1,11 & III amounting to? 72,147.07 lakhs. 24.3 Interest Accrued and Due on Borrowings on the above Current Maturities of the Loans have been shown under Current Financial Liabilities- Others - (Note No. 28). 24.4 Pending issuance of Government Order, Grant of ? Nil lakh (PY: ? 147.72 lakhs) and Loan of ? 67.03 lakhs (PY: ? 700.16 lakhs), towards rehabilitation of Unit No V of BTPS has been shown as Liability against Projects. 24.5 Liability against Projects includes Grant of ? 1,126.91 lakhs (PY: ? 1971.34 lakhs), Loan of ? 4,198.49 lakhs (PY: ? 7,504.34 lakhs) computed on provisional basis of Declaration of Commercial Operation of Unit No V of BTPS on and from 24th November, 2015 after successful completion ofenery efficient renovation and modernisation programme undertaken by the Company with financial assistance from the World Bank. 24.6 Capitalizations is made based on the provisional liabilities amounting to T 5,39243 lakhs (PY: T 10,323.56 lakhs) as shown under Liabilities for Projects/Capital Works subject to reconciliation and final settlement of bills with the Vendors Contractors. 25.OTHER NON CURRENT LIABILITIES (T in Lakhs) Particulars 31st March, 2018 31 March, 2017 Deferred Income- Government Grant for Fixed Asset 9,090.12 9,421.73 9,090.12 9,421.73 Deferred Income- Government Grant for Fixed Asset -Current 357.35 356.55 Deferred Income- Government Grant for Fixed Asset -Non Current 8,732.77 9,065.18 Additional Disclosures Total 9,090.12 9,421.73 25.1 Unit No V of BTPS which was undergoing Renovation & Modernisation since December 2013, went for commercial operation from 24th November 2015. Accordingly grant received and receivable shown as deduction from Fixed Asset (Property, Plant & Equipment) under previous IGAAP is disclosed as deferred income and is credited to profit and loss on a straight line basis over the expected life of the related assets. 82 33rd Annual Report 2017-18 WBPDCL NOTES TO THE FINANCIAL STATEMENTS 26. CURRENT FINANCIAL LIABILITIES - BORROWINGS (Z in Lakhs) Particulars 31" March, 2018 31a March, 2017 Secured Loans repayable on demand -from Punjab National Bank 21,126.73 19,943.73 -from Allahabad Bank 32,260.95 31,521.00 - from United Bank of India 29,335.92 32,619.00 -from Indian Bank 82,429.71 70,54538 - from State Bank of India 1,00,977.82 1,06,000.53 - from Corporation Bank 10,918.82 1 6,002.01 Total 2,77,049.95 2,66,631.65 Additional Disclosures 26.1 Loans repayable on demand are secured against Hypothecation of Receivables, Stock and Term Deposits 27. CURRENT FINANCIAL LIABILITIES - TRADE PAYABLES (fin Lakhs) Particulars 31 March, 2018 310 March, 2017 Trade payables - For Goods & Services-Total outstanding dues of micro enterprises and small enterprises - 1,528.39 -For Goods & Services-Total outstanding dues of creditors other than micro enterprises and small enterprises 2,25,812.82 1,43,719.32 Additional Disclosures Total 2,25,812.82 1,45,247.71 27.1 Based on available records, total outstanding on account of goods and servcies from Micro, Small and Medium Enterprises has been nil duirng the current financial year. 28. CURRENT FINANCIAL LIABILITIES - OTHERS (fin Lakhs) Particulars 31 March, 2018 31" March, 2017 Current maturities of long-term borrowings 71,749.51 74,358.66 Interest accrued but not due on borrowings 13,247.22 13,314.71 Interest accrued and due on borrowings 258.41 30,722.18 Liability for expenses 6,291.49 26,291 A Staff Related Liability 2,391.64 2,710.89 Liability for Other Coal Related Cost 1,963.24 1,025.37 Liability for Projects/Capital Works 159.27 2,916.32 Other Payables 638.59 4,809.01 Total 96,699.37 1,56,148.55 Additional Disclosures 28.1 Interest Accrued & Due on Borrowings includes: 28.1.1 T Nil lakh (PY: T 8,389.69 lakhs) is related to Loan taken for Bakreswar Unit No. 1, 11 & Ill. 28.1.2 Z Nil lakh (PY: ? 22,010.46 lakhs) is related to Loan taken for Bakreswar Unit No. IV & V. 28.2 Capitalization is made based on the provisional liabilities amounting to Z 159.27 lakhs (PY: Z 2,916.32 lakhs) as shown under Liabilities for Projects/Capital Works subject to reconciliation and final settlement of bills with the Vendors / Contractors. 33rd Annual Report 2017-18 83 WBPOCL NOTES TO THE FINANCIAL STATEMENTS 29. GOVERNMENT GRANTS (K in Lalkhs) Current Maturities Particulars 31st March 2018 31'tMarch 2017 Loan from Govt. of West Bengal - for Bandel Project EERM 6,409,76 4,823.00 -for Working Capital 10,042.84 25,000.00 -for Regulatory Assets & Others 2,12,573.88 1,58r697.87 Total 2,29,026.48 1,88,520.87 Additional Disclosures 29.1 During the year 2017-18 Company has received Z 53,876.01 lakhs (PY:Z 1,58,697.87 lakhs) as grant comprising of payment against fuel cost and fixed cost adjustment claim from Government of West Bengal ! 329,09.01 lakhs (PY T 1,58,697.87 lakhs), Construction of Ash Pond At BkTPP T 12,000 lakhs (PY T Nil lakh), Cosntruction of Solar Power Project ! 8,718.30 lakhs, ( PY ! Nil lakh), Power Sector Development Fund (PSDF) ? 248.70 lakhs (PY Z Nil lakh) . Petition for claim has been filed with the Hon'ble WBERC for the financial years 2013-14,2014-15 and 2015-16. 30. OTHER CURRENT LIABILITIES (7 in Lakhs) Particulars 31atMarch, 2018 31'tMarch, 2017 Statutory Liabilities (265.97) 1,015.63 Deferred Income- Government Grant for Fixed Asset -Current 357.35 356.55 Total 91.38 1,372.18 31. CURRENT TAX LIABILITIES ( in Lakhs) Particulars 31t March, 2018 31st March, 2017 Provision for IncomeTax 12,636.19 11,569.06 Provision for FBT 4539 45.39 12,681.58 11,614.45 Less: Advance Tax and TDS 20,424.09 18,233.49 Total (7,742.51) (6,619.04) Amount disclosed under Non Current Tax Assets (Net) (6,976.05) (7,407.91) Amount disclosed under Current Tax Liabilities/(Assets) [Net] (766.46) 788.87 32. SHORT TERM PROVISIONS (f in Lakhs) Particulars 31s March, 2018 31st March, 2017 Provision for Employee Benefit - Refer Note No 48 and 47 Provision for Pension 4,875.22 4,168.87 Provision for Gratuity 851.69 1,035.97 Provision for Leave Encashment 705.66 351.06 Total 6,432.57 5,555.90 84 33rd Annual Report 2017-18 vW,bP LK L NOTES TO THE FINANCIAL STATEMENTS 33. TERMS OF REPAYMENT OF LOAN ( in Lakhs) Particulars Security Interest rate Repayment Terms/ Current Non Current Maturity Term Maturities Maturities From Allahabad Bank Hypothecation Base Rate + 0.50% 40 Equal Monthly Allahabad Bank for Payment of Coal Liabilities of Receivables p.a. with monthly Instalments starting from 5,055,00 - rests. (Presently October 2013 9.10%) Total 5,055.00 - From Power Finance Corporation (PFC) Hypothecation of 60 Quarterly installments Term Loan PFC for SagardighI I & 11 fixed assets Fluctuating on 15th of July, October, (property, plant Ipeea January and April every 11,473.87 51,632.42 and equiment) at year starting from 1 51h Sagardighi I & II October 2008 11.25 % p.a. along Hypothecation with 3/10 year rest of fixed assets options prevailing 60 quarterly equal Term Loan PFC for Sagardighi II & IV (property, plant at the date of each installments starting from 27,040.85 3,73,486.83 and equiment) disbursement- 1 5th) April 2016 (Revised at Sagardighi Il1 (12.50%, 12.75%, to 15thJuly 2017). & IV 12.15%,11.65% at present) Hypothecation of movable 151 of July, October, assets at anuary and April every Term Loan PFC for STPS Unit VI Santald[h & 11.75%, 11.15% p.a; ar a d in 60 4,1511 42,620.63 future assets to payable monthly year to e epuadl 0 4181 2606 entad Unit installments No. VI Hypothecation of Ter Lon PC fr Pymnt f otst dig lanfixed as sets 10.65% p.a payable 60 quarterly equal n or Paynt of otstanding loan (property, plant install ments starting from 10,187.44 1,01,874.32 of the Govt of WB for BkTPP unit IV &V and equipmnet) monthly 28th March 2014 of BkTTP IV & V Total 52,860.26 5,69,614.20 From Rural Electrification Corporation (REC) Term Loan REC for STPS V Hypothecation of Fluctuating, Quarterly Installments for 7,500.25 39,376.31 fixed assets of presently 10.65% 15 years starting from KTPS and future September 2009 assets at Santaldih Unit No. V Total 7,500.25 39,376.31 From State Bank of India (581) e Hypothecation 40 Equal Monthly Term Loan for payment of Coal Liabilities Receivables 10.40% p.a Instalments starting from 3,334.00 - September, 2015 Total 3,334.00 - From West Bengal Industrial Infrastructure & Developmetn Corporation Limited (WBIDFC) Government 20 quarterly instalments Term Loan for payment of Coal Labilities Guarantee 9.5% p.a commencing from June 3,000 8,999.80 2017 Total 3,000 8,999.80 From Government of West Bengal 50 Equal Half yearly Govt. of WB Loan EERM BTPS Unsecured Libor Instalments starting from 6,409.76 29,659.38 December 2014 Govt. of WB Loan for payment to Coal Suppliers Unsecured Interest Free Five equal instalments 10,042.84 - Total 16,452.60 29,659.38 Grand Total 88,202.11 6,47,649.69 33rd Annual Report 2017-18 85 WEPOC L NOTES TO THE FINANCIAL STATEMENTS 34. REVENUE FROM OPERATIONS (Zin Lakhs) Particulars 315 March, 2018 31' March, 2017 Sale of Electricity 9,13,345.42 8,71,831.93 9,13,345.42 8,71,831.93 Other Operating revenue - Sale of Fly Ash 3,495.82 3,395.58 Less: Transferred to Fly Ash Utilisation Reserve Fund [refer Note 3.4] 3,495.82 3,395.58 Total 9,13,345.42 8,71,831.93 Details of products sold Sale of Electricity 9,13,345.42 8,71,831.93 Additional Disclosures Total 9,13,345.42 8,71,831.93 34.1 Sale of Electricity includesZ (755.24) lakhs (PY.Z (350.28) lakhs) towards unscheduled interchange (Deviation Settlement Mechanism) in respect of KTPS, BkTPP, BTPS, STPS & SgTPP relating to financial year 2017-18. 34.2 Sale of Electricity includes ! 2,907,11 lakhs (PY,! 2,90711 lakhs) towards transmission charges in respect of BkTPP relating to financial year 2017-18. 34.3 Sale of Electricity includes! 1,682.48 lakhs (P.Y.Z 1,178.64 lakhs) towards late payment surcharge. 34.4 Revenue from Operation includes cost recoverable through future Fixed Cost Adjustment for the year 2017-18 amounting to Z 52,632.43 lakhs (P.Y.Z1 3,668.22 lakhs) being 95% (taken conservatively) of the amount determined by the management, with consequential impact on the net profit of the year [See Note: 3.14 (c) of the Significant Accounting Policies].The applications of the aforesaid claim on account of Fixed Cost are to be lodged with WBERC together with Audited Financial Statements. 34.5 Revenue from Operation includes cost recoverable through future Fuel Cost Adjustment for the year 2017-18 amounting to ? 33,836.91 lakhs (PY.Z 54,881,00 lakhs), being 95% (taken conservatively) of the amount determined by the management [See Note: 3.14 (b) of the Significant Accounting Policies] with consequential impact on the net profit of the year. The application of such claim will be lodged with WEERE together with audited Financial Statements and other related documents. 34.6 The Claim to be lodged as mentioned under Para (34A) and (34.5) above together with the outstanding claims made earlier aggregates to ?3,76,442.09 lakhs (P. T 2,79,869.60 lakhs) has been shown till date under Cost Recoverable (Other Current Assets) vide Note No-18. 34.7 Sale of Eletricity includes Z Nil lakhs (P.Y.? 5,971.49 lakhs) representing 5% fuel cost adjustment claim and fixed cost adjustment claim arising on account of grant received from Government of West Bengal pertaining to financial years 2013-14 & 2014-15. 34.8 Sale of Eletricity includes ? 1245.45 lakhs (P.Y.? Nil lakh) representing income arising from review of APR for the FY 2012-13. 35. OTHER INCOME (? in Lakhs) Particulars 31 March, 2018 31 sMarch, 2017 Interest Income -Term deposits 5,659.69 6,190.32 - Security Deposits 4.93 2.74 - From Employees 59.00 49.60 - From Fixed Deposit earmarked for Unforseen Exigencies 1,061.62 1,005.24 6,785.24 7,247.90 Miscellaneous receipts 2,522.10 3,842.78 Sundry Balances Written Back 4,773.82 3,493.32 Deferred Income - Grant to the extent of Depreciation 35735 356.55 Total 14,438.51 14,940.55 86 33rd Annual Report 2017-18 WBPDCL NOTES TO THE FINANCIAL STATEMENTS 36. COST OF FUEL - COAL & OIL ( in Lakhs) Particulars 31st March, 2018 31st March, 2017 Inventory at the beginning of the year 50,121.66 63,032 82 Add: Purchases 6,17,050.98 6,24,786,38 Less: Inventory at the end of the year (22,394.95) (50,121.66) Cost of Fuel consumed 6,44,777.69 6,37,697.54 Less: Transferred to Capital Work in Progress/Fixed Assets - 5,547 00 Charged to Statement of Profit & Loss Account 6,44,777.69 6,32,150.54 Details of Fuel consumed - Coal 6,27,941.06 6,16,527 92 Less: Transferred to Capital Work in Progress/Fixed Assets -2,532.24 Charged to Statement of Profit & Loss Account 6,27,941.06 6,13,995.68 -Oil 16,836.63 21,16962 Less: Transferred to Capital Work in Progress/Fixed Assets -33014,76 Charged to Statement of Profit & Loss Account 16,836.63 18,154.86 Total 6,44,777.69 6,32,150.54 Details of Fuel Inventory -Coal 13,934.85 42,171,20 - Oil 8,460.10 7,950.46 Total 22,394.95 50,121.66 37. EMPLOYEE BENEFIT EXPENSES (Z in Lakhs) Particulars 31W March, 2018 31't March, 2017 Salaries, Wages, Dearness Allowance, Bonus and Other Benefits 41,339.36 41,34365 Contributions to Provident and other fund (Gratuity, etc.) 1,821.35 1,877 01 Staff Welfare Expenses 3,557.35 3,780.04 Total 46,718.06 47,000.70 Additional Disclosures 37.1 Under previous GAAP there was no concept of Other Comprehensive Income. Remeasurement of defined plan as per Ind AS 19amounting to ! 8,277.90 lakhs (P.Y. 8,488.90 lakhs) has been recognised in Other Comprehensive Income. 38. FINANCE COST (T in Lakhs) Particulars 31st March, 2018 31s March, 2017 Interest Expense - Interest on Term Loans 81,191.75 65,619 17 - Interest on Working Capital Loans 16,650.66 17,404.84 Other Borrowing Costs - Loan Processing & Other Financial Charges 1,079.40 721.45 Total 98,921.81 83,745.4 6 33rd Annual Report 2017-18 87 WBPDCL NOTES TO THE FINANCIAL STATEMENTS 39. OTHER EXPENSES ( in Lakhs) Particulars 31' March, 2018 31' March, 2017 Stores and Spare parts Consumed 11,462,58 15,639.91 Fuel Costs - Water Charges 574.32 723.05 - Other Fuel related costs 6,360.61 4,982.14 Repairs to Building 2,920.03 4,119.22 Repairs to Plant & Machinery 27,814.65 23,126.86 Repairs to Others 832.60 1,091.89 Insurance 1,241.04 554.29 Rates and taxes (excluding taxes on income) 162.61 179.24 Professional Charges 115.21 124.54 Security Expenses 2,355.45 1,923.89 Printing & Stationary 105.80 110.49 Books & Periodicals 3.66 1.49 Travelling Expenses 185.29 207.15 Legal Expenses 169.00 148.61 Auditor's Remuneration (Refer Note 40) 15.42 17.11 Advertisement & Publicity 250.57 398.73 Licence & Registration 57.84 89.42 Fees & Subsription 107.76 6.62 ERPC-Expenses 16.00 16.00 Bank Charges 89.08 16.95 Filing Fees 25.19 61.95 Director Sitting Fees & Other Expenses 4.24 4.60 Exchange Fluctuation 992.66 (700.43) Lease Rent including amortisation 17.15 14.28 Miscellaneous Expenses 3,016.60 1,514.98 Total 58,895.36 54,372.98 40. PAYMENT TO AUDITOR (t in Lakhs) Particulars 31st March, 2018 31t March, 2017 Audit Fees -Statutory Audit Fees 5.90 5.75 -Tax Audit Fees 0.71 0.69 -Cost Audit Fees 2.25 2.13 Certification Fees 5.67 5.19 Out of pocket expenses 0.89 3.35 Total 15.42 17.11 88 33rd Annual Report 2017-18 WBPDLL NOTES TO THE FINANCIAL STATEMENTS 41.Fair value measurements The following table shows the carrying amounts and fair values of financial assets and financial liabilities. The Company consider that the carrying values of financial assets and financial liabilities recognized in the financial statements approximate their fair value (t in Lakhs) Financial Assets 31st March 2018 31st March 2017 Amortised Cost Amortised Cost Trade Receivable Long term 589.72 2,358.87 Loan 434.62 434.62 Deposits 190.89 177.98 Other Advances 507.65 507.65 Fixed Deposits earmarked for Contingency Reserves 15,828.49 14,873.04 Fixed Deposit against Arbitration 14,988.56 14,038.90 Fixed Deposit - GPF 1,18,487.49 1,04,658.42 Bank Deposits 34.28 93.84 Other Receivable 3,084.45 3,785.67 Claims Recoverable (7,393.21) 5,525.60 Interest accrued but not due on fixed deposits 2,638.00 5,754.25 Trade Receivable short term 2,70,955.38 3,19,820.63 Cash & Cash Equivalents 31,210.79 23,442.40 Other Bank Balances 97,807.49 90,475.05 Total Financial Assets 5,49,364.65 5,85,946.92 Financial Liabilities 31st March 2018 31st March 2017 Amortised Cost Amortised Cost Borrowings 6,89,739.82 7,47,503.82 Loans repayable on demand 2,77,049.95 2,66,631.65 Trade payable 2,25,812.82 1,45,247.71 Others-current 96,699.37 1,56,148.55 Retention Money & Deposits 6,802.43 8,935.79 Others-non current 88,659.11 96,544.43 Total Financial Liabilities 13,84,763.50 14,21,011.95 The carrying amount of the various financial assets and liabilities are considered to be the same as their fair fair values. Under previous GAAP financial assets and liabilities are to be recorded at their transaction value. Ind AS requires all financial assets and liabilities are to be carried at their fair value. Retention Money & Deposits shown under financial liabilities have been discounted. Fair Value hierarchy level For financial reporting purposes, fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: 33rd Annual Report 2017-18 89 WBPDC I NOTES TO THE FINANCIAL STATEMENTS Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs for the asset or liability. Risk Management: 1. The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balances. As per the exisitng regulatory norm debt equity ratio is 70:30. 2. Power is highly regulated sector. This exposes the Company to the risks with respect to changes in policies and regulations. 3. The Company's operation are governed by the provisions of Electricity Act 2003 and regulations framed thereunder by the West Bengal Electricity Regulatory Commission (WBERC). Tariff Orders issued by the WBERC have bearing on the liquidity, earning , expenditure and profitability of the Company. 4. The Company's outstandings have been collected within a period of two months on a consistent basis without any delay or default. Therefore, the credit risk of the Company in respect of sales collections is minimal. 5. Even though the availability of coal has improved, coal quality continuos to be an issue. Unutilised capacity for power generation exposed the Company to risks associated with diffculties in achieving effeciency in performance. 6. Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of change in interest rates. As the interest is recoverable from beneficiaries through tariff there is no impact on profit and loss account. 7. While selecting banks for parking deposits, Company considers factors such as track record, size of the bank, reputation and service standards. Generally, the balances and deposits are maintained with banks with which the Company has also availed borrowings. Surplus funds are invested in Fixed Deposits. 8. Company relies on a mix of borrowings and operating cash flows to meet its need of funds. For new projects funding is in the form of equity contribution by the State Government and loan from fianancial insitutions / banks. go 33rd Annual Report 2017-18 WbP LK L NOTES TO THE FINANCIAL STATEMENTS 42. The Hon"ble Supreme Court of India vide its judgment dated August 25, 2014 followed by Order dated September 24, 2014 cancelled 204 coal blocks in the Country which were earlier allocated by the Ministry of Coal, Govt. of India for the purpose of mining for captive consumption. These 204 coal blocks include four coal blocks (i) Tara (East & West), (ii) Barjore, (iii) Gangaramchak & Gangaramchak-Bhadulia and (iv) Pachhwara (North) allotted earlier to the Company which were mined by M/s Bengal Emta Coal Mines Ltd, the joint venture company amongst WBPDCL, DPL and EMTA Coal Limited. Further in its Order dated 24th September, 2014 the Hon'ble Supreme Court imposed 'Additional levy' of? 295.00 per metric ton in respect of the Coal extracted from the cancelled Coal Mines till 31st March 2015. In terms of Explanation to Section 3(n) of the Coal Mines (Special Provisions) Act, 2015, the liability for payment of such 'Additional levy' of Z 295.00 per metric ton lies with the"Prior Allottee"in whose name the mining lease were granted. In respect of the Coal Blocks of the Company, the mining leases were in the name of M/s Bengal Emta Coal Mines Ltd and therefore they are considered as the"Prior Allottee". Hence no liability rests with the Company. 43. Pending settlement of 'Rate of Transportation'of Coal,from the Pit head to the loading point, supplied by M/s Bengal Emta Coal Mines Ltd from the Coal Mines at Barjore, Gangaramchak & Gangaramchak-Bhadulia and Pachhwara (North), rates approved by the Board of Directors during FY 2014-15 have been considered in the preparation of accounts . M/s Bengal Emta Coal Mines Ltd has filed writ petition praying before the Hon'ble High Court for quashing the letter issued by WBPDCL unilaterally reducing the transportation price of coal and directing WBPDCL pay interest @ 18% p.a on the alleged amount towards supply of coal in terms of the Joint venture Agreement. 44. The Board of Directors in its meeting held on 2nd March, 2015 decided to waive 50% of the outstanding loan given to Birbhum Institute of Engineering and Technology (BIET) amounting to ? 164.81 lakhs,on realization. No payment has yet been received. On receipt of payment necessary adjustments will be made.The Board of Directors in the meeting held on 17th September 2018 approved for extension of time upto 31st December 2018 for full and final settlement of the outstanding dues. 45. Borrowing costs amounting to ? Nil lakh (PY:? 22,398.29 lakhs) have been capitalized during the year under Capital- Work-in-Progress. (Z in Lakhs) Particulars 31.03.18 31.03.17 Sgtpp Unit Ill & IV Nil 22,398.29 Total Nil 22,398.29 During the year 2016-17, SgTPP Unit No Ill & IV of 500 MW capacity each have been capitalized and accumulated interest during the construction period amounting to T 1,43,944.59 lakhs including ? 22,398.29 lakhs for the financial year 2016-17 has been added with the Cost of Property, Plant & Equipment. 46. Contingent Liabilities: (as certified by Management) Claims against Company not acknowledged as debts - 46.1 Interest claimed by the Eastern Coal Fields Ltd (ECL) for delayed payment in respect of all the units till 31st March, 2018 amounting to Z 62,450.22 lakhs based on the claim received (P.Y.: ? 60,645.00 lakhs) has been disputed by the Company. Similarly interest claimed by Bharat Coking Coal Limited (BCCL) in respect of all units till 31.03.2018 amounting to? 20,457.00 lakhs has been disputed by the Company. 46.2 Supplementary bills claimed by Eastern Coal Fields Ltd (ECL) towards interest on delayed payment of excise duty amounting to ? 171.70 lakhs (PY:? 171.70 lakhs) has been disputed by the Company. 46.3 Performance incentive bill raised by Bharat Coking Coal Limited (BCCL) for the FY 2017-18 amounting to Z1 72.85 lakhs (PY: ? 8,398.90 lakhs) has been disputed by the Company. Performance incentive bill raised by ECL for the FY 2017-18 for ? 7,949.27 lakhs has been disputed by the Company. 46.4 Partial amount of performance incentive bill raised by Mahanadi Coal Fields Ltd (MCL) for Bandel Thermal Station amounting to ? Nil lakhs ( PY: ? 9.52 lakhs) has been disputed by the Company. Performance incentive bill for the FY 2016-17 raised by MCL for BTPS amounting to ? 153.97 lakhs has been disputed by the Company. 33rd Annual Report 2017-18 91 WBPD)CL NOTES TO THE FINANCIAL STATEMENTS 46.5 Various Supplementary and Up-gradation bills raised by different Coal Suppliers amounting to ? 3,287.10 lakhs, (PY: 7 1,905.96 lakhs) has been disputed by the company as per detail given below: (Z in Lakhs) Suppliers Name Plant 2017-18 2016-17 Eastern Coalfields Limited KTPS 258.00 258.00 BkTPP 1.75 1.75 SgTPP 173.96 56.00 Mahanadi Coalfields Limited KTPS 148.51 - BTPS 196.46 - BkTPP 2,255.78 - BkTPP - 937.04 SgTPP - 527.17 Bengal EMTA Coal Mines Limited BTPS 83.00 83.00 SgTPP 43.00 43.00 Central Coal Fields Limited KTPS 57.86 - BKTPP 68.78 - Total 3,287.10 1905.96 46.6 Employees State Insurance dues for BTPS relating to the period from 01.01.1987 to 31.03.1999 amounting to T 520.16 lakhs (PY: ? 520.16 lakhs) have been disputed by the Company and the matter is pending before the Hon'ble Calcutta High Court. 46.7 In pursuance of Writ Petition No 9013(W) of 2011, a bank guarantee of Z 69.83 lakhs (PY: Z 69.83 lakhs) was furnished to Calcutta High Court against stay of Demand of Regional Provident Fund Commissioner under section 7A & 7B of EPF& MP Act 1952 in respect of Contractors engaged by the Company at various Power Stations. Though the prima facie financial liability lies upon the Contractor, if the Contractor fails, the liability may lie upon the Company as would be decided by the Court. 46.8 Claim of compensation under Workmens'Compensation Act amounting to ? 22.00 lakhs ( PY: T 10.33 lakhs) is lying before Workmen Compensation Court. Though the prima facie financial liability lies upon the Contractor, if the Contractor fails, the liability may lie upon the Company as would be decided by the Court. 46.9 An ex-parte order dated 20.09.13 has been passed u/s 45A of the ESI Act by the ESI Authority for payment towards contribution for the FY 2008-2009 on omitted wages to the tune of T 0.90 lakhs in respect of BTPS Unit. The order has been challenged by the Company before the ES] Court and the Ld. Judge has been pleased to grant an order of ad-interim injunction vide its order dated 25.04.14 in favour of the Company restraining the ESI Authority to proceed further and/or to take any steps whatsoever on the basis of the order u/s 45A of the ESI Act till 27.05.14.The order of injunction has been extended from time to time. 46.10 An ex-parte order has been passed u/s 45A of the ESI Act by the ESI Authority for payment towards contribution for the period 2009-2010 on omitted wages to the tune of 7 0.11 lakhs. The order has been challenged by the Company before the ESI Court and the Ld. Judge has been pleased to grant an order injunction in favour of the Company restraining the ESI Authority to proceed further and/or to take any steps whatsoever on the basis of the order u/s 45A of the ESI Act. The matter had come up before the Ld. Court on 23.11.17, when the Ld. Court had directed that the order of injunction shall be allowed subject to deposition of Z 5,676/- (50% of the claimed amount of Z 11,352/-) by WBPDCL. the said amount has been duly deposited by WBPDCL. However, the matter had not come up after that.The order of injunction has been extended from time to time. 46.11 An ex-parte order has been passed u/s 45A of the ES] Act by the ESI Authority for payment towards contribution for the period 2008-2009 on omitted wages to the tune of Z 8.85 lakhs. The order has been challenged by the Company before the ESI Court and the Ld. Judge has been pleased to grant an order of injunction in favour of the Company restraining the ES1 Authority to proceed further and/or to take any steps whatsoever on the basis of the order u/s 45A of the ESI Act. The order of injunction has been extended from time to time. 92 33rd Annual Report 2017-18 NOTES TO THE FINANCIAL STATEMENTS 46.12 The Departmental appeal against the order of CIT(A) Kolkata for deletions of t 2718,35,03,233 (Tax impact ? 1,23,586.35 lakhs forAY 2007-08 as on 31.3.18, P.Y.: ?1,23,586.35 lakhs for AY 2007-08), before the Hon'ble ITAT, Kolkata has been dismissed and order in favour of the Company vide its order No 1.T.A. No 2584/Kol/2013 dated 3rd August 2017 has been issued. 46.13 In the case of WBPDCL -Vs- Dongfang Electric Corporation award has been passed by ICC (Arbitral Tribunal) on 24.08.2015. As per award, WBPOCL is liable to a payment of 7 223,02,94,966.58 (as on 31.01.2017)- plus release of Bank Guarantee of USD 1,35,00,000 (or its INR equivalent) and INR 24,00,00,000/-, held in Allahabad Bank, Stephen's Court Branch, Kolkata pursuant to an order dated 8.03.2011 and modified on 13.04.2011 of the Calcutta High Court plus set off allowed against excess tax reimbursement: INR 1,05,58,009 (to be considered at the time of reimbursement of tax). WBPDCL filed an appeal before the Hon'ble High Court, Calcutta against the said award on 26.11.2015 under Section 34 of the Arbitration and Conciliation Act, 1996.The matter is pending before the Hon'ble High Court for effective hearing, at this moment no coercive order is passed against the Corporation. The matter has been settled mutually "out of Court" in the Financial Year 2018-19. (Refer note No 22.1) 46.14 M/s. SPML had claimed ? 5,263.86 lakhs (RY.: T 5,263.86 lakhs) for its execution of work at STPS which has been disputed by the Company and the matter is pending before the Arbitral Authority. WBPDCL has made a counter claim before the Arbitral Tribunal for 7 1,757.64 lakhs. Pending award, the said lability has not been recognized in books of accounts. 46.15 A case (Subroto Mukherjee & Ors Vs The General Manager, KTPS & Ors) has been filed before Hon'ble National Green EnergyTribunal, Eastern Zone regarding pollution of surrounding villages at KTPS. The matter has been heard on diverse dates and the Hon'ble Tribunal has directed to close Unit Nos. 1, 2 & 3 of KTPS. Thereafter, the matter came up before the Hon'ble Tribunal on 12.04.17 when the Hon'ble Tribunal directed WBPDCL to submit a detailed schedule of repairing jobs of Unit Nos. 4, 5 & 6.The Hon'ble Tribunal further allowed the Company's prayer of Trial Run of Unit No. 1. The matter lastly came up before the Hon'ble Tribunal on 15.01.18 when the Hon'ble Tribunal directed the Regional Office of CPCB and the WBPCB to monitor the performance of the KTPS with regard to emission levels. 46.16 The Ministry of Coal, Govt. of India vide letter dated 03.01.17 had decided to invoke a Bank Guarantee, of an amount of Z 4.59 Crores, which WBPDCL furnished in respect of Pachwara (North) Coal Block. WBPDCL filed writ petition before the Hon'ble High Court against the aforesaid invocation order. The instant matter is pending before the Court. However, the validity period of the bank guarantee ended on 31.12.2016 and the same was not renewed. 46.17 In the case of G&S Construction Vs State of West Bengal & Ors, petitioner filed a petition before Hon'bte High Court to issue direction upon WBPDCL for payment/ release of due bill of Z 3,63,675/-+ idle charges of machinery from 01.03.14 to 05.09.14 alongwith interest in reference of Work Order against the NIT Ref No. STPS/GM/Civil/PM/1 089/1759 dated 03.07.13. The Hon'ble Judge has observed that the issue requires adjudication after the parties exchange their affidavits. The instant matter is pending before the Court. 46.18 In the case of Siur Co-operative Labour Contract& Construction Society Ltd vs The State of West Bengal & Ors, petition has been filed before the Hon'ble High Court, Calcutta praying for disbursement of an amount of Z 23,03,673/- with interest to be calculated till the date of disbursement forthwith, for doing the work of carriage of ash including loading, unloading & disposing of ash from Chandrabhaga river side at the BkTPS.The instant matter came up before the Hon'ble Court on 04.09.17 when His Lordship directed WBPDCL to file affidavit-in- opposition to the writ petition within three weeks after the Puja vacation. 46.19 M/s. Adani Enterprises Ltd. served notice to WBPDCL for arbitration and submitted claim of Z 238.48 crores plus 18% interest & cost of arbitration. WBPDCL lodged counter claim of ? 54.85 crores plus interest. Others for which Company is contingently liable 46.20 Letter of Credit (Foreign) of Z 744.63 lakhs (PY: Z 749.85 lakhs) issued by the banker on behalf of the Company for import of spares is outstanding as on 31.03.2018. 46.21 Letter of Credit (Domestic) of 7 1,418.44 lakhs (P.Y.: Z 964.52 lakhs), issued by the bankers on behalf of the Company for e-payment of Railway Freight to Railways is outstanding as on 31.03.2018. Futher letter of credit (Domestic) issued in favour of WBSETCL-State Load Despatch Centre (SLDC) during the FY 2017-18 amounted to Z 256.74 lakhs. 33rd Annual Report 2017-18 93 WB PDCL NOTES TO THE FINANCIAL STATEMENTS 46.22 Bank Guarantee amounting to T Nil lakh (P.Y.: Z 345.00 lakhs) for security against e-payment of Railway Freight. 46.23 Bank Guarantee amounting to 7 3,477.18 lakhs (RY: ? 3,477.18 lakhs) for supply of Coal under FSA with ECL on account of Unit No V of BkTPP. 46.24 Consequent upon allotment of six coal blocks to the Company, Performance Bank Guarantees (PBGs) of Z 52,166.00 lakhs (PY: ? 50,115.00 lakhs) has been issued in favour of Nominated Authority, Ministry of Coal, Govt of India. These PBGs are covered by Government Guarantee amounting to ? 47,945.50 lakhs (PY: ? 50,115.00 lakhs) as a Counter Guarantee for issuance of PBGs by Bank. 46.25 The Company has given a Corporate Guarantee to the extent of Nil lakh (P.Y.:? 370.00 lakhs) only in favour of Power Finance Corporation Ltd. for release of loan to WBGEDCL, a Joint Venture Company amongst WBPDCL, WBSEDCL & WBREDA. Commitments 46.26 Estimated amount of contracts remaining to be executed on Major Capital Accounts and not provided for - (T in Lakhs) Particulars 2017-18 2016-17 BKTPP (Construction of 2nd Ash Pond with water recovery system) 6,315.75 9,564.32 Corporate- Supply, Installation & Implementation of and Support for Enterprise 1,436.58 1,951.23 Resource Planning (ERP) Corporate- Supply, Installation, Maintenance of ICT Infrastructure including 711.27 1,041.63 Facility Management Services for ERP Infrastructure Up gradation of ESP & Associated system of Unit 1,2,3 at KTPS 12,095.32 - Upgradation of Ash handling system of Unit 1,2,3 at KTPS 7,535.18 - Total 28,094.10 12,557.18 47. Employee Benefits: Disclosures pursuant to adoption of Ind AS 19 on Employee Benefits 47.1 Defined Contribution Plans: The Company has recognized the following amounts in the Statement of Profit and Loss of the year: (t in Lakhs) Particulars Financial Year Amount 2017-18 637.84 Employer's Contribution to Contributory Provident Fund 2016-17 612.00 47.2 Defined Benefit Plans: a) Gratuity (GPF): i) Change in present value of obligations: (Z In Lakhs) Particulars 31/03/18 31/03/17 Opening Balance 7862.91 8516.40 Current Service cost 481.50 405.94 Interest Cost 520.26 624.02 Past service cost (4.77) - Actuarial (gains) / losses from financial assumptions (210.94) (530.26) Actuarial (gains) / losses from experience adjustments (15.79) (59.71) Benefits paid (1,333.99) (1,093.48) Closing Balance 7,299.18 7,826.91 94 33rd Annual Report 2017-18 NOTES TO THE FINANCIAL STATEMENTS ii) Change in Fair Value of Plan Assets: ? in Lakhs) Particulars 31/03/18 31/03/17 Opening Balance Inc-/(decrease) in scope of consolidation Interest income on plan assets - - Contributions by employer 1,333.99 1,093.48 Contributions by plan participants - Benefits paid (1,333.99) (1,093.48) Excess / (insufficient) return on plan assets (excluding interest income) - - Settlements - gains / (losses) Closing Balance - iii) Net position: ( in Lakhs) Particulars 31/03/18 31/03/17 Actuarial present value 7,299.18 7,862.91 Fair value of plan assets - - Net funded status - liability/(asset) 7,299.18 7,862.91 Unrecognized assets - - Reimbursement rights - - Net liability / (asset) recognized in BS 7,299.18 7,862.91 iv) Total Expense recognized in the Statement of Profit and Loss (Z in Lakhs) Particulars 31103118 31/03117 Current service cost 481.49 405.94 Interest cost 520.26 624.02 Past service cost (4.77) - Employee benefit cost of the period 996.98 1,029.96 v) Expenses recognised in Other Comprehensive Income (t in Lakhs) Particulars 31103118 31/03/17 Actuarial (gains) / losses (226.73) (589.97) Expense / (income) recognized in OCI (226.73) (589.97) 33rd Annual Report 2017-18 95 WBP DC I NOTES TO THE FINANCIAL STATEMENTS vi) Sensitivity (Z in Lakhs) Particulars 31/03/18 31/03/17 DBO at 31.3 with discount rate +1% 6,852.64 7,382.83 Corresponding service cost 339.46 371.51 DBO at 31.3 with discount rate -1% 7,809.53 8,411.90 Corresponding service cost 406.66 446.53 DBO at 31.3 with +1% salary escalation 7,480.69 8,078.55 Corresponding service cost 385.25 424.50 DBO at 31.3 with -1% salary escalation 7,123.50 7,642.48 Corresponding service cost 355.11 386.57 DBO at 31.3 with +50% withdrawal rate 7,441.73 8,015.21 Corresponding service cost 383.92 421.73 DBO at 31.3 with -50% withdrawal rate 7,154.36 7,708.08 Corresponding service cost 356.60 389.85 DBO at 31.3 with +10% mortality rate 7,351.00 7,916.59 Corresponding service cost 374.55 410.46 DBO at 31.3 with -10% mortality rate 7,247.03 7,808.90 Corresponding service cost 366.18 401.39 vii) Estimated Cash Flows (Undiscounted) in subsequent years (Tin Lakhs) Particulars 31103/18 31/03/17 1st year 883.71 1,072.77 2 to 5 years 3,790.70 3,905.06 6 to 10 years 2,747.81 3,028.40 More than 10 years 6,784.86 6,615.84 b) Pension Scheme for Employees opted for GPF i) Change in present value of obligations: (Z in Lakhs) Particulars 31/03/18 31/03/17 Opening balance 55,528.35 47,725.11 Current service cost 1,390.29 473.84 Interest cost 3,801.10 3,542.24 Actuarial (gains)/ losses from financial assumptions (2,479.28) (7194.10) Actuarial (gains) / losses from experience adjustments 7,631.85 15,952.63 Benefits paid (5,908.80) (4,971.37) Closing balance 59,963.51 55,528.35 96 33rd Annual Report 2017-18 WBPDL NOTES TO THE FINANCIAL STATEMENTS i!) Change in FairValue of Plan Assets: V in Lakhs) Particulars 31/03/18 31/03/17 Opening balance Inc-/(decrease) in scope of consolidation Interest income on plan assets - Contributions by employer 5,908.80 4,971.37 Contributions by plan participants Benefits paid (5,908.80) (4,971.37) Excess / (insufficient) return on plan assets (excluding interest income) - Settlements - gains / (losses) Closing balance - iii) Net position : (V in Lakhs) Particulars 31/03/18 31/03/17 Actuarial present value 59,963.51 55,528.35 Fair value of plan assets - - Net funded status - liability/(asset) 59,963.51 55,528.35 Unrecognized assets - - Reimbursement rights - - Net liability / (asset) recognized in BS 59,963.51 55,528.35 iv) Total Expense recognized in the Statement of Profit and Lo55 : (Zin Lakhs) Particulars 31103/18 31/03/17 Current service cost 1,390.29 473.84 Interest cost 3,801.10 3,542.24 Employee benefit cost of the period 5,191.39 4,016.08 v) Expenses recognised in Other Comprehensive Income: (Zin Lakhs) Particulars 31/03/18 31/03/17 Actuarial (Gains) /Losses 5,152.56 8,758.53 Expense / (Income) recognized in OCI 5,152.56 8,758.53 33rd Annual Report 2017-18 97 NOTES TO THE FINANCIAL STATEMENTS vi) Sensitivity (tin Lakhs) Particulars 31103118 31/03/17 DBO at 31.3 with discount rate +1% 55,128.67 50,826.35 Corresponding service cost 1,214.76 413.39 DBO at 31.3 with discount rate -1% 65,587.25 61,022.61 Corresponding service cost 1,602.84 547.16 DBO at 31.3 with +1% salary escalation 63,44841 58,929.46 Corresponding service cost 1,609.39 548.89 DBO at 31.3 with -1% salary escalation 56,862.16 52,509.04 Corresponding service cost 1,204.76 410.23 DBO at 31.3 with +50% withdrawal rate 59,905.57 55,469.41 Corresponding service cost 1,380.26 470.45 DBO at 31.3 with -50% withdrawal rate 60,021.99 55,587.84 Corresponding service cost 1,400.48 477.27 DBO at 31.3 with +10% mortality rate 58,450.37 54,087.03 Corresponding service cost 1,330.81 453.33 DBO at 31.3 with -10% mortality rate 61,604.36 57,093.50 Corresponding service cost 1,455.75 496.44 vii) Estimated Cash Flows (Undiscounted) in subsequent years (T in Lakhs) Particulars 31/03/18 31/03/17 1st year 5,059.20 4,796,61 2 to 5 years 21,271.95 20,273.65 6 to 10 years 27,594.00 26,747.51 More than 10 years 93,677.89 92,426.71 c) Leave Encashment Scheme i) Change in present value of obligations: (Tin Lakhs) Particulars 31/03/18 31/03/17 Opening balance 3,679.18 3,549.37 Current service cost 1,356.26 473.44 Interest cost 278.16 242.43 Actuarial (gains) / losses from financial assumptions (291.02) 97.58 Actuarial (gains) / losses from experience adjustments 3,643.09 222.75 Benefits paid (946.18) (906.39) Closing balance 7,719.49 3,679.18 98 33rd Annual Report 2017-18 NOTES TO THE FINANCIAL STATEMENTS ii) Change in Fair Value of Plan Assets: (T in Lakhs) Particulars 31/03/18 31/03/17 Opening Balance - - Inc-/(decrease) in scope of consolidation Interest income on plan assets - - Contributions by employer 946.18 906.39 Contributions by plan participants - - Benefits paid (946.18) (906.39) Excess / (insufficient) return on plan assets (excluding interest income) - - Settlements - gains / (losses) Closing Balance - iii) Net position: (R in Lakhs) Particulars 31/03/18 31/03/17 Actuarial present value 7,719.49 3,679.18 Fair value of plan assets - - Net funded status - liability/(asset) 7,719.49 3,679.18 Unrecognized assets Reimbursement rights - - Net liability / (asset) recognized in BS 7,719.49 3,679.18 iv) Total Expense recognized in the Statement of Profit and Loss (Z in Lakhs) Particulars 31/03/18 31/03/17 Current service cost 1,356.26 473.44 Interest cost 278.16 242.43 Employee benefit cost of the period 1,634.42 715.87 33rd Annual Report 2017-18 99 WB PDCL NOTES TO THE FINANCIAL STATEMENTS v) Expenses recognised in Other Comprehensive Income (tin Lakhs) Particulars 31/03118 31/03/17 Actuarial (gains) / losses 3,352.07 320.33 Expense / (income) recognized in OCI 3,352.07 320.33 vi) Sensitivity (T in Lakhs) Particulars 31/03/18 31/03/17 DBO at 31.3 with discount rate +1% 7,151.97 3,402.45 Corresponding service cost 1,238.74 431.02 DBO at 31.3 with discount rate -10/% 8,379.67 4,001.96 Corresponding service cost 1,495.67 524.04 DBO at 31.3 with +1% salary escalation 8,414.08 4,017.24 Corresponding service cost 1,503.02 526.46 DBO at 31.3 with -1% salary escalation 7,115.84 3,386.02 Corresponding service cost 1,231.34 428.53 DBO at 31.3 with +50% withdrawal rate 7,776.24 3,704.68 Corresponding service cost 1,370.49 478.31 DBO at 31.3 with -50% withdrawal rate 7,661.85 3,653.28 Corresponding service cost 1,341.78 468.47 DBO at 31.3 with +10% mortality rate 7,734.77 3,685.92 Corresponding service cost 1,359.36 474.46 DBO at 31.3 with -10% mortality rate 7,704.15 3,672.42 Corresponding service cost 1,353.14 472.42 vii) Estimated Cash Flows (Undiscounted) in subsequent years (Tin Lakhs) Particulars 31/03/18 31/03/17 1st year 732.29 365.75 2 to 5 years 3,566.61 1,602.40 6 to 10 years 3,554.32 1,710.87 More than 10 years 10,514.32 5,896.36 100 33rd Annual Report 2017-18 WBPDLL NOTES TO THE FINANCIAL STATEMENTS d) Characteristics of defined benefit plan and risks associated with them: Defined benefit plans are salary defined plan. Valuations of defined benefit plan are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over the time. Thus, the Company is exposed to various risks in providing the above benefit plans which are as follows: * Credit Risk: If the scheme is insured and fully funded on PUC basis there is a credit risk to the extent the insurer(s) is/ are unable to discharge their obligations including failure to discharge in timely manner. * Pay-as-you-go Risk: For unfunded schemes financial planning could be difficult as the benefits payable will directly affect the revenue and this could be widely fluctuating from year to year. Moreover there may be an opportunity cost of better investment returns affecting adversely the cost of the scheme. * Discount Rate risk: The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase in the ultimate cost of providing the above benefit thereby increasing the value of the liability. * Liquidity Risk: This risk arises from the short term asset and liability cash-flow mismatch thereby causing the company being unable to pay the benefits as they fall due in the short term. Such a situation could be the result of holding large illiquid assets disregarding the results of cash-flow projections and cash outgo inflow mismatch. (Or it could be due to insufficient assets/cash.) * Future Salary Increase Risk: The Scheme cost is very sensitive to the assumed future salary escalation rates for all final salary defined benefit Schemes. If actual future salary escalations are higher than that assumed in the valuation actual Scheme cost and hence the value of the liability will be higher than that estimated. * Demographic Risk: In the valuation of the liability certain demographic (mortality and attrition rates) assumptions are made. The Company is exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing an increase in the scheme cost. * Regulatory Risk: Gratuity Benefit must comply with the requirements of the Payment of Gratuity Act, 1972 (as amended up-to-date). There is a risk of change in the regulations requiring higher gratuity payments (e.g. raising the present ceiling of Rs.1 0,00,000 for employees under GPF, raising accrual rate from 15/26 for etc.). Regarding pension a new Act/Regulations may come up in future which could increase the liability significantly. e) Actuarial assumptions Particulars 31/03/18* 31/03/17 Discount rate current year 7.69% 7.23% Expected rate for salary increases 1.75% 1.75% Weighted average duration of the defined benefit plan (in years) for Gratuity-GPF 10.84 10.48 Weighted average duration of the defined benefit plan (in years) for Pension 26.62 27.00 Weighted average duration of the defined benefit plan (in years) for Leave Encashment 12.63 12.58 *For Gratuity GPF discount rate is 7.66% In respect of ex-employees of erstwhile WBSEB, now WBSEDCL, as per Govt. of West Bengal Order No. 558 dated 28-06-2001, Pension, Gratuity and Leave Encashment Liability as on the date of transfer i.e. 01-04-2001 will be reimbursed by erstwhile WBSEB, now WBSEDCL, to the Company. 33rd Annual Report 2017-18 101 WB' PPC I NOTES TO THE FINANCIAL STATEMENTS 48. The Company does not have a separate Trust Fund for General Provident Fund, Pension Fund, Gratuity Fund - (GPF) and Leave Encashment Fund. However, in compliance with Section 417 of the Companies Act, 1956, aggregate of General Provident Fund, Pension Fund, Gratuity (GPF) Fund and Leave Encashment Fund balances as on 31.03.18 amounting to Z 924,57.87 lakhs (RY: 83,158.29 lakhs) shown under Non Current Financial Liabilities Note No-22 & 23 and Short Term Provisions Note No-32 are invested in term deposits with scheduled banks. However, interest on such investments / deposits are credited to Statement of Profit & Loss of the Company in absence of separate Trust Fund. The details of such investment are as follows: (Z in Lakhs) SI Particulars Mode of Principal Amount Principal Amount No. Investment 31.03.18 31.03.17 1 Allahabad Bank Term Deposit 44,841.59 38,518.55 2 Canara Bank Term Deposit - 846.00 3 Corporation Bank Term Deposit 17,312.19 9,726.00 4 HDFC Bank Term Deposit 33,340.35 16,675.18 5 Indian Bank Term Deposit 13,355.58 32,503.86 6 Indian Overseas Bank Term Deposit 812.21 812.20 7 State Bank of India Term Deposit 1,283.36 1,075.07 8 Punjab National Bank Term Deposit 764.86 733.61 8 Interest Accrued on Term Deposit Term Deposit 6,777.35 3,767.95 Total 1,18,487.49 1,04,658.42 49. The Management has reviewed various credit balances which were lying credited for more than eight years (except encashed bank guarantees) and is of the opinion that those are no longer payable ( including encashed bank guarantees) and hence credited to the statement of Profit and Loss Account and reflected under "Miscellaneous Receipts", 'Sundry Balances Written Back" and "Other Expenses" during the year as shown below:- (T in Lakhs) 2017-18 2016-17 5,326.43 543.32 The Company has credited a net sum of Z 135.86 lakhs (P.Y. Z 2,950 lakhs) to the Profit and Loss Account towards final settlement with Gammon India Limited in respect of SgTPP Units III & IV towards Liquidated Damages due to delay in completion of projects in compliance with Ind AS 16. 50. Generation of electricity, as defined under section of 2(28) of the Electricity Act, 2003, is the principal business activity of the Company. From the financial year 2015-16, the Company has become lessee of six Coal Mines allotted by the Ministry of Coal, Government of India through the Government dispensation route. Mining operation from the said allotted Coal Mines has commenced only in respect of Barjora Coal Mines at Birbhum in the month of March 2018. Hence there are no activities which form a reportable segment as per Ind AS 108 on Segmental Reporting. Further the operations of the company is mainly carried out within the state of West Bengal hence geographical segment is not applicable. 51. Information about major customers: Revenue of Z 9,08,755.84 lakhs (RY.: ? 8,67,746.18 lakhs) is derived from WBSEDCL. 52. Pending commercial operation of mines, expenditures incurred in connection with the Coal Mines allotted to the Company amounting to Z 46,578.54 lakhs (P.Y.: ? 41,669.15 lakhs) have been recorded under Capital work in progress during the financial year 2017-18. 102 33rd Annual Report 2017-18 WBPDLL NOTES TO THE FINANCIAL STATEMENTS 53. Disclosures relating to Related Parties as per Ind AS 24 and transactions between the Company and related parties and status of outstanding balances: 53.1 The Company being a Government related entity is exempt from the general disclosure requirements in relation to related party transactions and outstanding balances with the controlling Government and another entity under same Government. 53.2. Bengal EMTA Coal Mines Limited (BECML) - A Joint Venture Company with WBPDCL, with 20% equity holding by WBPDCL. The Company has, however not nominated its representatives to the Board of the Company (BECML). Its principal place of operation is in West Bengal. 53.3. West Bengal Green Energy Development Corporation Limited (WBGEDCL) - A Joint Venture Company with WBPDCL, with 45% equity holding by WBPDCL. Its principal place of operation is in West Bengal. 53.4. Bengal Birbhum Coal Fields Limited - A Joint Venture Company with WBPDCL, with 27.80% equity holding by WBPDCL since 2015-16. Its principal place of operation is in West Bengal. 53.5. Key Management Personnel: a) Sri Santanu Basu appointed as Chairman & Managing Director w.e.f. 16.6.2015.* b) Dr. A.N.Biswas- Govt Nominee Director(w.e.f. 1.12.2014) c) Smt S. Mahapatra -Govt Nominee Director (w.e.f. 01.12.2017)* d) Sri Samar Jha- Independent Director (upto 30.11.2017 & w.e.f. 12.03.2018) e) Sri Srikumar Banerjee- Independent Director (w.e.f. 04.05.2015) f) Sri K.K.Sharma- Independent Director (upto. 31.10.2017) g) Shri Rahul Guha- Independent Director (w.e.f. 04.05.2017) h) Shri Ashim Kumar Maitra - Independent Director (w.e.f.12.03.2018) i) Sri Amit Bhattacharyya -Whole-Time Director (w.e.f.01.09.2015) j) Sri Amalesh Kumar - Whole-Time Director (w,e.f 29.10.2015) k) Sri Debkumar Gupta -Whole-Time Director (w.e.f.01.12.2015) 1) Sri .S.S.Sengupta - Whole-Time Director (w.e.f. 27.01.2016) m) Sri Indranil Dutta-Whole-Time Director (w.e.f. 24.3.2017) n) Sri Subhasis Ghosh - Whole-Time Director (w.e.f. 01.09.2017) *Holding 2 equity shares of face value of 7 1,000 each. 53.6. Details of transactions carried out in the ordinary course of business in respect of Point 53.2 above. (Z in Lakhs) Nature of transaction 2017-18 2016-17 Purchase of Coal (including Taxes) - - Dividend Received - - Outstanding Balance-Payable 3,640.86 3,640.86 53.7. Details of transactions carried out in respect of Point 53.4 above. (Z in Lakhs) Nature of transaction 2017-18 2016-17 Purchase of Coal (including Taxes) - Dividend Received Outstanding Balance-Receivable (Reimbursement of expenses) 127.48 119.48 33rd Annual Report 2017-18 103 \\ L)C WB PDCL NOTES TO THE FINANCIAL STATEMENTS 53.8. Transactions with Key Management Personnel in respect of Point 53.5 above. (? in Lakhs) Nature of transaction 2017-18 2016-17 Remuneration to Chairman and Managing Director 19.79 18.93 Remuneration to Directors 117.59 106.14 Sitting fee paid to Independent Directors (excluding SI No f) during the year is Z 4.24 lakhs (P.Y. Z 4.60 lakhs) (inclusive of Service Tax & GST). 54. Earnings Per Share (EPS) Basic & Diluted: ( in Lakhs) Particular 2017-18 2016-17 A (i) Number of Equity Shares at the beginning of the year 6,19,86,455 5,26,32,800 (ii) Number of Equity Shares issued during the year 61,88,900 93,53,655 (iii) Number of Equity Shares at the end of the year 6,81,75,355 6,19,86,455 (iv) Weighted average number of Equity Shares outstanding 6,30,81,101 6,01,09,186 during the year (v) Face value of each share (Z) 1,000 1,000 B Profit after tax available to Equity Shareholders 3,933.05 4,108.02 C Basic & Diluted EPS (R) 6.23 6.83 55. Additional Disclosure with respect to interest in Joint Ventures: i. Bengal EMTA Coal Mines Limited a) Name of the Joint Venture: M/s. Bengal EMTA Coal Mines Limited b) Country of Incorporation - India. c) Since the Company holds 20% of the total paid up Share Capital of Bengal EMTA Coal Mines Limited, the interest in the said Company is limited to 20% of the assets, liabilities, income, expenditure & contingent liability in the Joint Venture Company as detailed below: (T in Lakhs] 2014-15, 2015-16 SI.No. Particulars 2016-17 & 2017-18 2013-14 1 Assets 6,141.76 2 Liabilities 6,141.76 3 Income 7246 See note below 7,254.64 4 Expenditure 7,380.45 5 Contingent Liability 411.19 6 Capital Commitment 3.30 Note: In absence of Audited Financial Statement of Bengal EMTA Coal Mines Limited for the year 2014-15,2015-16, 2016-17 & 2017-18 the relevant information is not given above. Also Consolidated Financial Statement could not be prepared due to non availability of audited financial statement. ii. West Bengal Green Energy Development Corporation Ltd. a) Name of the Joint Venture: West Bengal Green Energy Development Corporation Ltd. b) Country of incorporation - India. c) Since the Company holds 45% of the total paid up Share Capital of West Bengal Green Energy Development Corporation Ltd. the interest in the said Company is limited to 45% of the assets, liabilities, income, 104 33rd Annual Report 2017-18 WBPDCL NOTES TO THE FINANCIAL STATEMENTS expenditure, & contingent liability in the Joint Venture Company as detailed below: (T in Lakhs) SI.No. Particulars 2017-18 2016-17 1 Assets 796.07 2 Liabilities 796.07 3 Income729 See note below 72.90 4 Expenditure 152.82 5 Contingent Liability Nil 6 Capital Commitment Nil Note: In absence of Audited Financial Statement of West Bengal Green Energy Development Corporation Ltd.for the year 2017-18 the relevant information Is not given above. Also Consolidated Financial Statement could not be prepared due to non availability of audited financial statement. iii. Bengal Birbhum Coal Fields Limited a) Name of the Joint Venture: Bengal Birbhum Coal Fields Ltd. b) Country of incorporation - India. c) Since the Company holds 27.80% of the total paid up Share Capital of Bengal Birbhum Coal Fields Ltd the interest in the said Company is limited to 27.80% of the assets, liabilities, income, expenditure, & contingent liability in the Joint Venture Company. (T In Lakhs) SI.No. Particulars 2017-18 2016-17 1 Assets 3.26 2 Liabilities 3.26 3 Income See note below Nil 4 Expenditure 3.76 5 Contingent Liability Nil 6 Capital Commitment Nil Note: In absence of Audited Financial Statement of Bengal Birbhum Coal Fields Ltd for the year 2017-18, the relevant information on Company's interest in Bengal Birbhurn Coal Fields Ltd is not given. Also Consolidated Financial Statement could not be prepared due to non availability of audited financial statement. 56. The Balances shown under Capital Advances, Claims Receivable, Arrear Receivable, Others under Non Current Financial Liabilities, Loans and Advances, Deposits, Retention money payable, Trade payables, Other payables and material under inspection/lying with contractors are subject to confirmation from respective parties. 57. In the opinion of the Management, the value on realization of Current Assets and Loans and Advances in the ordinary course of the business would not be less than the amount at which they are stated in the Balance Sheet and the provision for all known and determined liabilities is adequate and not in excess of the amount reasonably required. 58. The Company has made a provision for income tax for Z 1,067.12 lakhs (RY. Z 1,114.49 lakhs) during the current year. Computation of the same is made as per prevailing taxation laws under the Income Tax Act, 1961. Minimum alternative tax is applicable for the Company. There is no change in applicable tax rate as compared to previous year. Applicable tax rate i.e 21.3416% is computed as Tax Rate- 18.50%, Surcharge 12% on such tax and Education cess and Secondary and Higher Education Cess calculated at the rate of 2% and 1% of such income-tax and surcharge. 59. During the year Company was required to spend T 128.13 lakhs (PY: Z 102.87 lakhs) on Corporate Social Responsibility in-terms of Section 135 of the Companies Act 2013 read with Schedule VII thereof, being two percent of average net profit for the last three financial years (considered from the audited financial statements of the respective previous years prepared as per previous GAAP) 33rd Annual Report 2017-18 105 WBPOCL NOTES TO THE FINANCIAL STATEMENTS Amount spent during the year on the following activities (f in Lakhs) SI Particulars Financial In Cash Yet to be paid in Cash Amount No. Year 201 7-18 NIL NIL NIL (i) Construction/acquisition of any asset 2016-17 NIL NIL NIL (ii) On purposes other than (i) above 2017-18 193.54 NIL 193.54 2016-17 110.58 NIL 110.58 60. Licensed and installed capacities: (As certified by Management) Particulars 2017-18 2016-17 A Licensed Capacity Not applicable (i) Kolaghat 1260 MW 1260 MW (ii) Bakreswar 1050 MW 1050 MW B Installed Capacity (iii) Bandel 455 MW 455 MW (iv) Santaldih 500 MW 500 MW (v) Sagardighi 1600 MW* 1600 MW* Total 4865 MW 4865 MW *During the financial year 2016-17 Unit No Ill & IV of Sagardighi Thermal Power Project with installed capacity of 500 MW each commenced commercial operation with effect from 1st July 2016 and 20th December 2016 respectively after successful completion of trial run. 61, Quantitative Information in respect of Generation and Sale of Electricity: 61.1. Commercial: Generation (in MU) SI.No. Units 2017-18 2016-17 1 Kolaghat 4,749.846 6,037.973 2 Bakreswar 7,486.545 7,050.543 3 Bandel 1,926.043 1,885.030 4 Santaldih 2,941.562 3,667.315 5 Sagardighi 6,341.643 4,783.062 Total 23,445.639 23,423.923 61.2. Auxiliary Consumption (in MU) SI.No. Units 2017-18 2016-17 1 Kolaghat 541.188 655.281 2 Bakreswar 702.859 701.782 3 Bandel 212.680 216.482 4 Santaldih 247.194 302.895 5 Sagardighi 621.292 551.854 Total 2,325.213 2,428.294 106 33rd Annual Report 2017-18 WBPDL NOTES TO THE FINANCIAL STATEMENTS 61.3. Deviation Settlement Mechanism (in MU) SI.No. Units 2017-18 2016-17 1 Kolaghat 29.098 34.741 2 Bakreswar (0.862) (17.708) 3 Bandel (11.589) (2.081) 4 Santaldih 4.118 7.229 5 Sagardighi (35.511) (27.039) Total (14.746) (4.858) 61.4. Units sold (in MU) SI.No. Units 2017-18 2016-17 1 Kolaghat 4,179.560 5,347.950 2 Bakreswar 6,784.548 6,366.469 3 Bandel 1,724.952 1,670.630 4 Santaldih 2,690.250 3,357.191 5 Sagardighi 5,755.862 4,258.246 Total 21,135.172 21,000.486 61.5. Plant Load Factor (in %) SI.No. Units 2017-18 2016-17 1 Kolaghat 43.03 54.70 2 Bakreswar 81.39 76.65 3 Bandel 48.32 47.29 4 Santaldih 67.16 83.73 5 Sagardighi 45.25 48.97 WBPDCL 55.01 61.05 61.6. Plant Availability Factor (in %) SI.No. Units 2017-18 2016-17 1 Kolaghat 43.96 59.10 2 Bakreswar 85.23 84.84 3 Bandel 53.10 59.23 4 Santaldih 69.13 91.95 5 Sagardighi 44.48 57.51 WBPDCL 56.40 67.54 33rd Annual Report 2017-18 107 WB PDCL NOTES TO THE FINANCIAL STATEMENTS 61.7. Sale of Electricity (tinLakhs) SI.No. Units 2017-18 2016-17 1 Kolaghat 1,58,784.82 2,17,950.68 2 Bakreswar 2,74,119.97 2,59,171.56 3 Bandel 75,929.82 75,934.54 4 Santaldih 1,19,983.61 1,35,223.68 5 Sagardighi 2,84,527.20 1,83,551.47 Total 9,13,345.42 8,71,831.93 Sales for the Financial Year 2017-18 amounting to T 9,13,345.42 lakhs (PY.: T 8,71,831.93 lakhs) includes charges on account of Unscheduled Interchange amounting to ? (755.24) lakhs (P.Y.: ? (350.28) Lakhs), Transmission Charges amounting to T 2,907.11 lakhs (RY: Z 2,907.11 lakhs), Late Payment Surcharge Z 1,682.48 lakhs ( RY.: Z 1,178.64) and also includes T 33,836.91 lakhs (RY: Z 54,881.00 lakhs) towards Fuel Cost Adjustment for 2017-18 and ? 52,632.42 lakhs (RY.: T1 3,668.22 lakhs) towards Fixed Cost Adjustment for 2017-18 recoverable subject to approval ofWBERC. During the financial year 2016-17, Grant against claimed regulatory assets relating to the financial years 2013-14 & 2014-15 has been received from Government of West Bengal. Accordingly 5% of the revenue amounting to T Nil lakh (RY.: ? 5,971.49 lakhs) has been recognized in financial year 2017-18. Sale of Eletricity includes T 1245.45 lakhs (PY. T Nil lakh) representing income arising from review of APR for the FY 2012-13. 62. Consumption of Fuel: 62.1. Consumption of Coal (Quantity in MT) SI.No. Units 2017-18 2016-17 1 Kolaghat 37,70,633.35 52,47,504.07 2 Bakreswar 45,03,212.83 46,04,917.33 3 Bandel 14,61,349.16 15,03,014.17 4 Santaldih 18,41,759.78 23,76,123.04 5 Sagardighi* 39,75,417.23 29,62,080.74 Total 1,55,52,372.35 1,66,93,639.35 *Excludes capitalization of Nil MT (PY: T60,817.50 MT) towards Capital Work In progress for SgTPP-Stage I1 during the FY 2017-18. 62.2. Consumption of Coal (Value T in lakhs) SI.No. Units 2017-18 2016-17 1 Kolaghat 1,29,329.52 1,73,914.71 2 Bakreswar 1,86,458.52 1,68,482.97 3 Bandel 61,672.28 63,821.57 4 Santaldih 71,475.80 80,269.90 5 Sagardighi* 1,79,004.94 1,27,506.53 Total 6,27,941.06 6,13,995.68 *Excludes capitalization of T Nil lakh (P.Y. Z 2,532.24 lakhs) towards Capital Work In progress for SgTPP stage II during 2017-18. 62.3. Consumption of Oil (Quantity in KL.) SI.No. Units 2017-18 2016-17 1 Kolaghat 7,528.96 12,216.00 2 Bakreswar 2,333.87 5,350.09 3 Bandel 10,839.00 12,563.00 4 Santaldih 954.00 945.83 5 Sagardighi* 17,639.23 14,348.99 Total 39,295.06 45,423.91 *Excludes capitalization of Nil KL (RY. 7,787.86 KL) towards Capital Work In-progress for SgTPP Stage lI during the FY 2017-18. 108 33rd Annual Report 2017-18 WBP LK L 62.4. Consumption of Oil (Value T in lakhs.) SI.No. Units 2017-18 2016-17 1 Kolaghat 3,201.91 4,738.08 2 Bakreswar 990.37 2,186.15 3 Bandel 4,616.35 4,850.01 4 Santaldih 453.97 557.02 5 Sagardighi* 7,574.03 5,823.60 Total 16,836.63 18,154.86 *Excludes capitalization of? Nil lakh (RY.: Z 3,014.76 lakhs) for SgTPP Stage 11 during the FY 2017-1 8. 63. Value of Imports calculated on CIF Basis (Z in Lakhs) CIF Basis 2017-18 2016-17 Spare & Other items 1248.01 551.55 64. Expenditure in foreign currency (Z in Lakhs) Particulars 2017-18 2016-17 Travelling Expenses 4.72 2.34 65. Value of Imported & Indigenous Raw Materials, Spare & Other Items consumed and percentage of each to the total consumption: Particulars 1 2017-18 [ 2016-17 (T In lakhs) %( In lakhs) % A) Raw Materials - Coal, & Oil for Generation of Electricity Indigenous 6,44,777.68 100 6,37,697.53 100 For FY 2017-18 it includes amount of T Nil lakhs (PY. 5,547.00 lakhs transferred to Work in progress) Consumption of Z 6,44,777.68 lakhs includes Imported coal procured (Z 1,041.49 lakhs) locally. B) Spares & Other Items i) Imported 73.39 0.64 49.63 0.32 i) Indigenous 11,389.19 99.36 15,590.28 99.68 Total 11,462.58 100.00 15,639.91 100.00 66. The Company is consistently accounting dearness allowance based on actual disbursement. 67. Previous period's figures have been regrouped and rearranged wherever considered necessary. As per our report of even date. For SRI Associates For and on behalf of the Board of Directors Firm Registration No.- 3051 09E Chartered Accountants Sd/- Sd/- Sd/- Sd/- Ismat Pasha Amit Bhattacharyya Debkumar Gupta Santanu Basu Partner Company Secretary Director (F&A) Chairman and Managing Director Membership No.013280 Date: 17.09.2018 Place : Kolkata 33rd Annual Report 2017-18 109 WB PDCL FORM AOC - 1 PART "B": Associates and Joint Venture Companies Statement pursuant to Section 129(3) of the Companies Act, 2013 related to Associate Companies/Joint Ventures West Bengal Bengal Birbhum 1. Name of the Joint Venture M/s Bengal Emta Coal Green Energy Coal Fields Mines Limited Development Limited Corporation Limited 2. Latest Audited Balance Sheet Date 31.03.2014 31.03.2017 31.3.2017 3. Date on which the Associate or Joint 17.01.1996 15.06.2009 29.09.2015 Venture was associated or acquired 4. Shares of Joint Ventures held by the Company on the year end Numbers 22,70,200.00 22,50,000.00 27,783.00 Amount of Investment (Rin lakhs) 264.31 225.00 2.78 Extent of holding 20% 45% 27.80% 5. Description of how there is significant By way of share holding By way of share By way of share influence and represented in the holding and holding and Board as Director (upto represented in the represented in the 16.06.15) Board as Director. Board as Managing Director. 6. Reason why Joint venture is not consolidated Non availability of Non availability of Non availability of audited financial audited financial audited financial statements statements statements 7. Net worth attributable to shareholding as 142.79 (159.44) (30.54) per latest Balance Sheet (Z in lakhs) 8 Profit/Loss for the year i) Considered in consolidation Refer 6 above Refer 6 above Refer 6 above ii) Not considered in consolidation Refer 6 above Refer 6 above Refer 6 above As per our report of even date. For SRI Associates For and on behalf of the Board of Directors Firm Registration No.- 305109E Chartered Accountants Sd/- Sd/- Sd/- Sd/ Ismat Pasha Amit Bhattacharyya Debkumar Gupta Santanu Basu Partner Company Secretary Director (F&A) Chairman and Managing Director Membership No.013280 Date: 17.09.2018 Place: Kolkata 110 33rd Annual Report 2017-18 WBPOCL POWER PLANTS IN WEST BENGAL 一 S扮l .. . . . . . . . . . EL 2 The West Bengal Power Development Corporation Limited (A Government of West Bengal Enterprise) Corporate Identity No.: U40104WB 1 9855GC039154 "Bjdyut Unnayan Bhaban" 3/C, LA-Block, Sector-ill, Bidhannagar, Kolkata - 700 098 P å