DHILLON & ASSOCIATES QUIET OFFICE NO. 4 CHARTERED ACCOUNTANTS SECOND FLOOR, SECTOR 35A CHANDIGARH- 160022 PH: 0172-2609257, 4619257 e-mail: rajiv.makkarra@gmail.com INDEPENDENT AUDITORS' REPORT To The Members of Haryana Power Generation Corporation Limited Report on the Standalone Ind AS Financial Statements We have audited the accompanying standalone Ind AS Financial Statements of HARYANA POWER GENERATION CORPORATION LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss, the Cash Flow Statement, and the statement of changes in equity for the year ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as "standalone Ind AS Financial Statements"). Management's Responsibility for the Standalone Ind AS Financial Statements The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS Financial Statements that give a true and fair view of the financial position, 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 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 Statements 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 there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS Financial Statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and 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 con trol 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 Cormpany's Directors, as well as evaluating the overall presentation of the standalone Ind AS Financial Statements. We believe that the audit evidence we have obtained is sufficient and appropriate to poi(,1 a bsis for our qualified audit opinion on the standalone Ind AS Financial Statements. Basis for Qualified Opinion a) The under-mentioned Notes to the Ind AS Financial Statements carrying Balance/ Advances since many years, say 1998. As explained by the management, the nature of such Balance/ advances is not hnown. There is no adjustment! recoveries in these accounts. In the absence of the proper information or explanation, Assets and Liabilities to that extent have been overstated. The details for the same is as under:- (RIs. In Crores) Note No. Particulars Debit redit 24 OTHER NON CURRENT LIABILITIES Deposits and Retention (Account Code 46.125F&B) 8 OTHERS FINANCIAL ASSETS Deposits (Account Code 28.9 A&R-) 12.10 16 OTHER CURRENT ASSETS Others (Account Code 28.86 F&B3) 10.80 TOTAL 22.90 49.45 b) The under-mentioned Notes to the Ind AS Financial Statements carrying Balance! Advances from the long time. There is no adjustment/ recoveries in these accounts. In the absence of the proper information or explanation, Assets and Liabilities to that extent have been overstated. The details for the same is as under:- (Is. In Crores) Note_No.,___ __ Part iculars _____-- )b-i Creif, 24 OTHER NON CURRENT LIABILITIES Deposits and retention from suppliers and contractors - Credit Balances I 27 OTHER FINANCIAL LIABILITIES Liability for 0 & Msupplies/worhs - Debit Balances 6-98 Credit Balance 68 88 Other liabilities Credit Balances 2- Debit Balance 0.61 10 OTHER NON-CURRENT ASSETS a) Capital advance ) Interest free Debit Balance 12.52 7 NON-CURRENT LOANS Other Loans- Debit Balances 0.34 16 OTHER CURRENT ASSETS- Advances for Operation & Maintenance Supplies /works & Advances for fuel supplies - Debit Balance 2.4 15 OTHER FINANCIAL ASSETS + Income Accrued but not due on staff loan & advances - Debit Balances 0,5a -TOTAL 23.415 133.591 c) There are Heads of "Loans / Advances given to employees" which should contain accounts with debit balances but there are some accounts showing credit balances of Rs. 0.10 crores. In the absence of the proper information or explanation "Loans / Advances given to employees" is understated to the extent of Rs. 0.10 crores. d) There are Heads of "Income Accrued On Loans and Advances" which should contain accounts with. debit balances but there are some accounts showing credit balances of Rs. 0.19 crores. In the absence of the proper information or explanation "Income Accrued On. Loans and Advances" is understated to the extent of Rs. 0, 19 crores. e) SOP bill & FPA bill for the month of March 17 are raised on 03-Apr-17 & 10-Apr-1 7 to DHBVNL but for calculation of surcharge in the month of May bill date of both bills are taken 01-Apr-17. Similarly SOP bill & FPA bill for the month of Apr 17 are raised on 01-May-17 & 08-May-17 to DHBVNL but for calculation of surcharge in the month of May bill date of both bills are taken same, which results in loss of surcharge amounting Rs.1,81,408 to HPGCL. f) HPGCL hires data entry operators in units and H1O. on contract basis for which expenses is booked in Account code 76.125 "Other Professional Charges" As per Harvana Govt. notification they cannot be treated as employees & will be treated as professionals, consequentially TDS on their payment is deducted u/s 194-J. Since IIPGCL is taking professional services from unregistered person, reverse charge is requires to be deposit for the month of July, Aug & Sep'2017, but no reverse charge is deposited for the same. Qualified Opinion In our opinion and. to the best of our information and according to the explanations given tI us. except for the effects of the matter described in the Basis for Qualified Opinion paragraph abive Th aforesaid standalone Ind AS Financial Statements give the information required by the Act in tl) manner so required and give a true and fair view in conformity with the accounting p'iinipl generally accepted in India, of the state of affairs of the Company as at 31st March. 2018, and its profit and its cash flows for the year ended on that date. Emphasis of Matter a) We draw attention to Note 12 "Trade Receivables" to the Ind AS Financial Statementin'4i wpi'ttI of sum of Rs.49.12crores (previous year Rs.42.60crores) shown as receivable froim I { P Balance amount is pending to be reconciled with HVPNL. In the absences of same, the impact, if any, on the Balance sheet and Statement of Profit and Loss could not be ascertained. b) We draw attention to Note No. 15"Other Financial assets" to the Ind AS Financial Statements a sum of Rs.0.08 crores are standing as 'Other claims and receivables(Account Code 28.810 PTPS/. The claim for recovery was filed with Arbitrator for the differential amount in 1993. However, the period of reference to the Arbitrator has expired. The matter is pending in arbitration Court for extension of period and Corporation anticipates recovering this amount from the party. Since, the company has not made any provision for Doubtful advance, the profit has been overstated to that extent and the assets have been overstated to that extent. c) We draw attention to Note No. 15 "Other Financial assets" to the Ind AS Financial Statements a sum of Rs. 4.64 crores are standing as 'Other claims and receivables'. A claim for recovery is pending in the High Court. Since, the company has not made any provision for Doubtful advance, the profit has been overstated to that extent and the assets have been overstated to that extent. d) As required by the provision of Section 204 of the Act read with Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the company is required to obtain 'Secretarial Audit Report' from independent practicing company secretary. As per information given to us, Secretarial Audit is under progress for the year under audit. e) As per Note 20(B) "Share application money pending allotment", Rs.30.85 crores are standing as share application money. As required by the provision of section 62 and 42 of the Act the Company has not made allotment of shares amounting to Rs.10.20 crores within sixty days from the date of receipt of the application money. As per the provision of the Act, the Company has not refunded the said amount within fifteen days from the date of completion of sixty days. Our opinion is not qualified in respect of this matter. Other Matters a) As per information given to us and based on records examined, Balance confirmation letters to Sundry Debtors & Sundry Creditors and Loans & Advances from and to various parties, Claims Recoverable, Deposit from and to various parties etc. were issued for confirmation of balance. Since, adverse replies have not been received, balances were considered final (Refer Clause 23 of Note 43 Additional Information to the Inld AS Financial Statements). 1) We did not audit the Ind AS financial statements / financial information of 3 jointly controlled entities, whose Ind AS financial statements / financial information reflect total assets of Rs. 10266.01 Crores as at 31st March, 2018, total revenues of Rs.4147.44 Crores and net cash inflow amounting to Rs. 1.76 Crores for the year ended on that date, as considered in the consolidated Ind AS financial statements. The consolidated Ind AS financial statements also include the Group's share of net profit of Rs. 144.40 Crores for the year ended 31st March, 2018, as considered in the consolidated Ind AS financial statements, in respect of 3 Joint Ventures, whose Ind AS financial statements / financial information have not been audited by us. Report on Other Legal and Regulatory Requirements L As required by the Companies Act, 2013 under section 143(5), we give in the Annexure - I, a statement on the matters directed by Comptroller & Auditor General of India. 2. As required by the Companies (Auditor's Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure - II a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. 3. As required by Section 143 (3) of the Act, we report that: (a) We have sought and except for the possible effects of the matter described i tlhass for Qualified Opinion paragraph obtained all the information and explanatons whicfr to the best of our knowledge and belief were necessary for the purposes of our audit. (b) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. (c) The Standalone Balance Sheet, the Statement of Profit and Loss Account, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account. (d) Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid standalone Ind AS Financial Statements comply with the Ind Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. (e) The matter described in the Basis for Qualified Opinion paragraph above, in our opinion, may have an adverse effect on the functioning of the Company. (f) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act- (g) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above. (h) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure III". (i) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS Financial Statements Refer Clause: 20 of Note: 43 of Additional Information to the Ind AS Financial Statements) and our comments made in (i) paragraph of this report under "Emphasis of Matter". ii. Except for the possible effects of the matter described in the Basis of Qualified Opinion paragraph above, the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Notes 22 and 29 to the Ind AS Financial Statements. iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company. For Dhillon & Associates Chartered Accountants Firm Registration No.002783N CA. Rajiv Makkar Place: Chandigarh Partner Date: 30-08-2018 M. No.503009 ANNEXURE - I TO THE INDEPENDENT AUDITORS' REPORT [Referred to the Paragraph of "Other Legal and Regulatory requirements" of our Audit Report] [The Statement of Direction & Additional direction under Section 143(5) of the Companies Act, 2013 issued by office of Comptroller &- Auditor General of India, for the year 2017-18] S. o.DirectionI Auditos' Reply- Adequacy ofsteps to prevent As per information given to us and based on encroachment of idle land owned records examined, there is adequate system to by Company may be examined. In prevent encroachment of idle land owned by the case land of the Company is Company. encroached, under litigations, not put to use or declared surplus, details may be provided. 2. Where land acquisition is involved As per information given to us and based on in setting up new projects report records examined, no such land acquisition whether settlement of dues done observed during the year under audit. expeditiously and in a transparent manner in all case. The cases of deviation may please be detailed. 3. Whether the company has an As per information given to us and based on effective system for recovery of records examined, the company has effective revenue as per contractual terms system of recovery for revenue as per contractual and the revenue is properly terms and the revenue are properly accounted for accounted for in the books of in the books of accounts in compliance with the accounts in compliance with applicable Accounting Standards. applicable Accounting standards? 4. How much cost has been incurred As per information given to us and based on on abandoned projects and of this records examined, the Company has not incurred how much cost has been written any cost on abandoned projects during the year. off? 5. the cases of thermal Power As per information given to us and based on Projects, compliance of the records examined, Haryana State Pollution Control various Pollution Control Acts and Board has the impact thereof including * Granted consent for emission of Air under utilization and disposal of ash and Prevention & Control of Pollution Act 1981; the policy of the company in this * Granted consent to operate for discharge of regard, may be checked and i effluents under Prevention & Control of Water commented upon. Pollution Act 1974; * Authorized the operation of facility for collection, reception, treatment, storage, transportation and disposal of hazardous wastes; * 100% dry fly ash utilization as per MOEF guidelines is being maintained Hence, the company has complied with all relevant Pollution Control Acts, during the year under audit., 6. Has the company entered into As per information given to us and based on revenue sharing agreements with records examined, the Company has not entered private parties for extraction of into any revenue sharing agreements with private coal at pitheads and it adequately parties for extraction of coal at pitheads. protects the financial interest of the company? 7. Does the company have a proper As per information given to us and based on system for reconciliation of records examined, the company has a proper quantity/ quality of coal ordered system for reconciliation of quantity/quality of coal and received and whethe grade of ordered and received. Also, the grade of coal/ moisture and dei4r-e etc. coal/moisture and demurrage etc. are properly are properly recordedpift(A boks recorded in the books of accounts. However, the of accounts? company has booked coal claims at the time of _____________________________________acceptance of coal claims by coal companies only. 8. JHow much share of free power was As per inforimati ongive n tous and based on due to the State Government and records examined, the Company is not obliged to whether the same was calculated share free power to the State Government during as per the agreed terms and the year under audit. Hence, the direction is not depicted in the accounts as per applicable. accepted accounting norms? 9. In the case of Hydroelectric As per information given to us and based on projects the water discharge is as records examined, the water discharge is as per per policy/ guidelines issued by State Government's policy. As information and the State Government to maintain explanation given to us, the Western Yarnuna biodiversity. For not maintaining Canal (WYC) channel emanates from RD900 it, penalty paid/payable may be meters (water head regulator) of Western Jamuna reported. Canal (WJC) of irrigation canal and water is discharged into WJC canal -Dadupurafter using the potential at power houses. It is also stated that no penalty has ever been paid during the year under audit. 10. Whether the company has clear As certified by the management, the company has title/lease deeds for freehold and clear title/lease deeds for lands hold by it upto leasehold respectively? If no, 31.03.2018except for the title deeds of land please state the area of freehold acquired by transfer scheme dated 14.08.1998 as and leasehold land for which referred in Note (I)(1). Addition to land for current title/lease deeds are not available year amounting to Rs. 0.96 crores is for land development. 11. Please report whether there are As informed by the management and based on the any cases of waiver/ write off of records examined, we have not observed any case of debts/loans/interest etc., if yes, the waiver/ write off of debts/ loans/ interest etc. from reasons there for and the amount banks or financial institution during the year involved. under audit. However, * Its. 0.61 crore was written off on account of wrong classifications including suspense accounts which were no more recoverable/payable . 12. Whether proper records are As per information given to us and based on maintained for inventories lying records examined, there was no inventory lying with third parties & assets with third parties and no assets were received as received as gift from Government gift from Government or other authorities. or other authorities? For Dhillon & Associates Chartered Accountants Firm Registration No. 002783N CA. Rajiv Makkar Place: Chandigarh Partner Date: 30-08-2018 ll. No. 503009 ANNEXURE - II TO THE INDEPENDENT AUDITORS' REPORT [Referred to in Paragraph 2 of "Other Legal and Regulatory requirement" of our report] Statement referred to in our report of even date to the members of M/s Haryana Power Generation Corporation Limited ("the Company") on the Ind AS Financial Statements for the year ended 31st March 2018. We report that: (i) In respect of its fixed assets: (a) The company has maintained proper records Fixed Assets Register shoiving full particulars, including quantitative details and situation of Fixed Assets for the Financial Year 2017-18. (b) During the Financial Year 2017-18, physical verification is conducted by External Agency. As certified by agency, no material discrepancy has been found during physical verification. (c) As certified by the management, the company has clear title/lease deeds for lands hold by it up to 31.03.2018 except for the title deeds of land acquired by transfer scheme dated 14,08.1998 as referred in Note 1(I)(1). Addition to land for current year amounting to Rs. 0.96 crores is for land development. (ii) In respect of its inventories: (a) The inventory, except goods-in-transits certified by management. has been physically verified by the management at reasonable intervals. In our opinion, the frequency of such verification is reasonable. (b) According to information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business. (c) On the basis of our examination of the inventory records, in our opinion, the company is maintaining proper records of inventory and the discrepancies noticed on verification between the physical stock and book record were not material considering the size of the company and the nature of its business, and the same has been properly dealt with in the books of account. (iii) According to information and explanations given to us, the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore, reporting under sub clauses (a) and (b) are not applicable to the Company. (iv) In respect of loans, investments, guarantees, and security, provisions of section 185 and 186 of the Companies Act, 2013 have been complied with. (v) According to the information and explanations given to us, the Company has not accepted any deposits from the public to which the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules, 2014, as amended, would apply. Accordingly, the provisions of Cause 3(v) of the Order are not applicable to the Company. (vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete. (vii) (a) According to the information and explanation provided to us and the records of the Company examined by us, in our opinion, the company was generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees' State Insurance, Gratuity Provident Fund, Income Tax, Sales Tax, Service Tax, Excise duty, Cess, Wealth fax & other material statutory dues as applicable except undisputed due of LAD'P of Rs.32.25 crores are standing for more than 6 months. (b) According to the records of the Company and information and explanations given to us, the disputed statutory dues aggregating to Rs. 331.32 crores that have not been deposited on account of matters pending before appropriate authorities. The following are the details of disputed dues in respect of income Tax, Sales Tax, Wealth Tax, Entry Tax, Service Tax, Custom Duty, Value Added Tax, Excl tDuty and Cess as on 31st March 2018. Sr. Name of the Statute Nature of Period to Forum where Rs. Dues which the dispute is Crores amount pending relates 1. Central Sales Tax and Sales Tax/ 2009-10 Joint ETO (A), 1.31 Sales Tax/VAT Acts of VAT 2010-11 Jagadhri 2.10 Various States 2. Finance Act, 1994 Service Tax 2006-07 CESTAT, Delhi 5.73 3. Finance Act, 1994 Service tax/ 2010-11 CESTAT, Delhi 0.24 penalty 4. The Haryana Local LADT 2007-08 Supreme Court 311.76 Area Development Tax Act, 2000 5. Provident Fund and EPF 1995-99 High Court 0.19 Miscellaneous Provisions Act, 1952 6. Finance Act, 1994 Service Tax 2012-13, CESTAT, Delhi 9.42 2014-15 & 2015-16 7. Finance Act, 1994 Service Tax 2016-17 CESTAT, Delhi 0.57 Total 331.32 (viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to financial institutions, banks and debenture holders. (ix) In our opinion and according to the information and explanations given to us, no money is raised by way of initial public offer or further public offer (including debt instruments) and the term loans have been applied by the Company during the year for the purposes for which they were obtained. (x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the Management. (xi) Managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act. (xii) In our opinion and according to the information and explanations given to us, the company is not a nidhi company. Accordingly, this clause is not applicable to company. (xiii) In our opinion and according to the information and explanations given to us, no transaction with related parties, as per sections 177 and 188 of Companies Act. 2013 where applicable,has been entered, (xiv) As per the information and explanations given to us, the company has not made any right issueduring the year under review. (xv) In our opinion and according to the information and explanations given to us, the company has not entered into any non-cash transactions with directors or persons connected with him. (xvi) In our opinion and according to the information and explanations given to us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. For Dhillon & Associates Chartered Accountants Firm Registration No. 002783N CA. Rajiv lakkar Place: Chandigarh Partner Date: 30-08-2018 M. No. 503009 ANNEXURE ILITO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THE Ind AS Financial Statements OF MIS HARYANA POWER GENERATION 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 Haryana Power Generation Corporation Limited ("the Company") as of March 31, 2018 in conjunction with our audit of the Ind AS Financial Statements of the Company for the year ended on that date. Management's Responsibility for Internal Financial Controls The Company's Board of Directors is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. Auditors' Responsibility Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by ICA. 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 were 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 Ind AS Financial Statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis 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 Ind AS Financial Statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Ind AS Financial Statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of manage(- t and directors of the company; and (3) provide reasonable assurance regarding prevention or t1e'& detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the lnd AS Financial Statements. Inherent Limitations of Internal Financial Controls over Financial Reporting Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 201.8, 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 ICAL. For Dhillon & Associates Chartered Accountants Firm Registration No. 002783N CA. Rajiv AIakkar Place: Chandigarh Partner Date: 30-08-2018 VI. No. 503009 r/-[ HARYANA POWER GENLRATION CORPORATION LIMITED REGD_ OFFICE: JRJA BHAVVAN, SECTOR-6, PANCHKULA, HARYANA - 134109 C I N: U45207 H R1 997SGC033517 STANDALONE BALANCE SHEET AS AT 3ist MARCH, 2018 Amount (Rs. in crores) Particulars Note No. As at As at 31 March 2018 31 March 2017 I Non-current assets F ASSETS Property, plant and equipment 2 5,484-61 5,897-91 Capital work-in-progress 3 25.86 31.90 Intangible assets 4 5.34 6.58 Intangible assets under deveiopment 5 0.10 010 Financial assets Investments 6 717-17 699,92 Loans 7 8,74 8.81 Others 8 14.30 15.37 Deferred tax assets (net) 9 189,34 0.30 0'her non-current assets 10 13,13 15.17 2 Current assets Inventories 11 477-86 1,023,SS Financ;al assets Trade receivables 12 5K32 355.47 Cash and cash ea tjivalents 13 0.22 0.01 Bank balances other ilhan above 14 84.71 78,54 Loans - - Other financial assets 15 53-57 67-08 Other current assets 16 17048 184.64 Assets held for sale 17 6098 1.64 Regulatory Deferral Account Debit Balances 18 - Total Assets 8,39T42 EQUITY AND LIABILITIES Equity Equity share capital 19 3,004-86 2,916.06 Other equity 20 331.77 "106.46 Liabilities I Non-current liabilities Financial liabilities Borrowings 21 11,800-21 2,518.33 Other financial liabilities Provisions 22 151,53 145.84 Deferred tax liabilities (net) 23 - - Other non-current liabilities 24 748.81 696.28 2 Current liabilities Financial liabilities Borrowings 25 242-05 146,08 Trade payables 26 373.66 408.40 Others 27 837.26 1.122.22 Other current liabilities 28 3,19 2.30 Provisions 29 389-18 334,47 iCurrent tax liabilities (net) 29 4.03 - Total Equity and Liabilities 7,986.55 8,397.42 Si2nificant Accounting Policies 1 F_ The accompanying notes form an integral part of its financial 2 to 43 statements For and on behalf of the Board of Directorp A/V V V114 Sh. Rohitas Bansal Sh VB. Barsal Smt, Sukriti Likh7,IAS Chief Accounts Officer Director Generation Managing Director Place: Panchkula Dated: g)2018 As Per Our report of even date attached For Dhillon Associates Chartered Accountants h. B.B. 0 S h. l4a r ish K.Gulatl Firm Regd. No'. 00278,3 N CFO Company Secretary tA, Ra v Makkar (Partner) Membership. No. 503009 Place Chan6crarh ,Dated HARYANA POWER GENERATION CORPORATION LIMITED REGD. OFFICE: URJA BHAWAN, SECTOR-6, PANCHKULA, HARYANA - 134109 CIN; U45207HR1997SGCO33517 STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2018 Amount (Rs. in crores) For the year For the year Particulars Note No. ended ended 31 March 2018 31 March 2017 Income Revenue from operations 30 5,277.48 4,513.39 Other income 31 32.30 334 26 Total income 5,309.79 4,847.65 Expenses Cost of materials consumed 32 3,634,31 3,125.87 Employee benefits expense 33 440.71 590.25 Finance costs 34 306.72 408.47 Depreciation and amortisation expense 35 412.29 430.53 Other expenses 36 192,68 156.37 Total expenses 4,986.91 4,711.49 Profit/(Loss) before net movement in regulatory deferral 322.88 136.16 account balance and tax Net movement in regulatory deferral account balance - (148.07) Profit / (Loss) before tax 322.88 (11.90) Tax expense: (a) Current tax Current tax expenses 4.29 - MAT credit (9.14) 0.17 (4.85) 0.17 (b) Deferred Tax Asset (Liability) 83.42 (79.12) (a+b) (68,27) 79.30 Profit I (Loss) after tax 411.15 (91.20) Profit / (Loss) from discontinued operations 37 25.17 60.13 Tax expense of discontinued operations (5,37) - Profit I (Loss) from discontinued operations after tax 19.80 60.13 Profit / (Loss) after tax 430.95 (31.07) Other Comprehensive Income Items that will not be reclassified to profit or loss - Remeasurement of net defined benefit liability/asset (305.23) (156.94) - Income tax on above 105.63 54.31 Total (199.60) (102.62) Total Comprehensive Income for the period 231.35 (133.69) Earnings per equity share (before net movement in regulatory deferral account balance) from continuing operations (a) Basic 38 137.73 40.12 (b) Diluted 38 136.32 38.94 Earnings per equity share (after net movement in regulatory deferral account balance) from continuing operations (a) Basic 38 137.73 (10.65) (b) Diluted 38 136.32 (10.34) Earnings per equity share for total operations (continuing + discontinuing operations) (a) Basic 38 144.36 (10.65) (b) Diluted 38 142.88 (10.34) Significant Accounting Policies 1 The accompanying notes form an integral part of its financial 2 to 43 statements For and on behalf of the Board of Directors Sh. Rohitas Bansal Sh V.B. Bansal Smt. Sukriti Likhi,AS Chief Accounts Officer Director Generation Managing Director Place: Panchkula Dated:30 a/2018 As per our report of even date attached For Dhillon Associates tIh Chartered Accountants B.BG Sh K.Gula Firpepd,4No 78 N CFO Company Secreta (Partn Acc s Membetip ro. 500 Place: Dated 36 STATEMENT OF CHANGES IN EQUITY A. Equity Share Capital Changes in equity share capital for the year ended 31st March 2018 (Rs. in crores) For the year ended 31st For the year ended 31st Particulars March 2018 March 2017 Balance at the beginning of the reporting period 2,916.05 2,894.58 Changes in equity share capital during the year 88.81 21.47 Balance at the end of the reporting period 3,004.86 2,916.05 �- �r е• �� оsrэ и м; �....�, . � k ,� I �.. ; , ' , ' � ОГJ ц3. а г ,.г � � � aS СЛ � � м й � ш � � � � � � м с 3 � � �, r.�fl � с •- гтл с� е� a��s ` � :� � �' � �.. � � .� �_ � _ � � � �+'�w- з ��-� ��w�° � ��� ��сгп� � С]C�J = �w�`s r- .-. � у�, г Ci Q7 v7 ш �' 4: .�.. и7 � � � � J � у.+ С7 ..Li]. ...� . г � � ` R7 С}i L � '} :i1 гU 7 � � Ш ГJ] U СС: Yi Q У r ' � + [� � � � �i} � �.} �L GO �. 'Л ... �ry . � � � �. 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U45207HR1997SGCO33517 CIN: U45207HR1997SGCO33517 Cash Flow Statement for the year ended 31 St March, 2018 Amount (Rs. in crores) Particulars For the year ended For the year ended 31st March, 2018 31st March, 2017 A, Cash Flow from operating activities Net profit / (loss) before tax 34&05 48-23 Adjusted for : Depreciation & Arnartisation Expenses 412,29 430 53 Adjustments for appropriations 51.92 (aoi) Interest on Deposits (11.74) (5.83) interest & Finance Charges 306.72 408.47 Operating Profit before working capital charges 1,107.24 881.38 Adjustment for Assets & Liabilities Inventories 546.12 (72.53) Trade receivables (214.85) 822.16 Bank balance other than cash & cash equivalent (6,18) - Loans, Other Financial Assets & Other Assets 30.84 28,36 Trade Payables (34-74) 162.24 Other Financial Liabilities & Other Liabilities 39.22 22,49 Regulatory Deferral Account Balances - 148.07 Provisions 58.73 281.52 Other Comprehensive Income (305.23) (156.94) MAT Adjustments (0.52) (0.17) Not Cash from Operating Activities (A) 1,220.63 2,116.57 B. Cash Flow from Investing activities Net Expenditure on Property, Plant & Equipment and CWIP (50.84) (95-84) including advances for capital works Term Deposits with Banks (having maturity exceeding 3 (5.23) months) Interest an Deposits 11,74 5.83 Investments made (17.25) (33.25) Net cash used in investing activities (B) (56.35) (128.48) C. Cash Flow from financing activities Proceeds from share capital - 21.47 Proceeds from share application money 30.85 61.58 Net Borrowings (968.16) (1,668.84) Interest & Finance Charges (226.77) (402.72) Net cash from financing activities (C) (1,164.08) (1,988.51) Net increase/ (decrease) in cash and cash equivalents (A, 0.21 (0.42) B, C) Cash and cash equivalents at the beginning of the year 0.01 0.43 Cash and cash equivalents at the end of the year 0.22 0.01 CASH & CASH EQUIVALENTS Balances with banks Balances in Current Accounts with Schedules banks 0.21 0.01 Cheques deposited but not credited by bank 0.01 0.01 Cash on hand (including Imprest with staff) - Motes - Total 0.22 0.01 1, The Cash Flow Statement reflects the combined cash flows pertaining to continuing and discounting operations. 2- Negative Figures have been shown in brackets, For and on behalf of the Board of Directors Sh. Rohitas Bansal Chief Accounts Officer h V " BBansal Smt. Sukriti LlkhI, [AS Director Generation Managing Director Place, Panchkula Dated1. /og/2018 As per our report of even date allached S B.Gupta S h. srh K.Gula For Dhillon Associates CFO Company Secretaaa Chartered Accountants l r 27,83N (Partner)' MembOrship No. 5 03009 Place: Ch a rdiga h Dated: 9- 1 u ' /2018 HARYANA POWER GENERATION CORPORATION LIMITED Significant Accounting Policies forming part of the Standalone Financial Statements for the year ended March 31st, 2018 NOTE - 1 . CORPORATE INFORMATION 1. Haryana Power Generation Corporation Limited (HPGCL) is a company registered under the Indian Companies Act, 1956. HPGCL was incorporated as a company on 17thMarch 1997 with registered office at Urja Bhawan, Sector-6, Panchkula-134109 and CIN: U45207HR1997SGCO33517, The company is engaged in the business of generation of power in the state of Haryana through thermal generating stations located at Panipat Yamuna Nagar and Hisar; and hydroelectric stations located at Western Yamuna Canal (WYC) Bhudkalan, Yamuna Nagar and Solar generating unit at Panipat. 2. In exercise of the powers conferred by section 55 read with section 23, 24 and 25 of the Haryana Electricity Reform Act, 1997, the Government of Haryana vide Notification No. SO.106/HA/98/S23,24&25/ 99 dated 14.8.98 issued a transfer scheme under which the undertakings, assets, properties, liabilities, proceedings and personnel of the Haryana State Electricity Board (HSEB) relating to Generation Schemes in the State of Haryana were transferred to the Company (Haryana Power Generation Corporation Limited). Under rule 7 of the transfer scheme notified on 14th August 1998, the rights and obligations of all persons shalf be restricted to the Transferee to whom the relevant undertakings are assigned. Therefore, Haryana Power Generation Corporation Limited (HPGCL) and Haryana Vidyut Prasaran Nigam Limited (HVPNL) are liable for all the obligations of the erstwhile HSEB for the respective undertakings transferred to them. The assets & liabilities as shown in the balance sheet are as per Transfer Scheme 1998 (transfer of undertakings, Assets, Liabilities, Proceedings and personnel) and as amended vide First Amendment Rules, 1999. The assets relating to these plants were transferred at a value higher by Rs. 88.52 crores and the same were reflected in all the assets sub head wise in the same ratio uniformly and depreciation on these assets have been provided at the transfer price. 3. Haryana Govt.vide its notification No. 1/6/2005-1 Power dated 09.06.2005 transferred the rights relating to 'procurement and bulk supply of electricity or trading of electricity' from HVPNL to HPGCL w.e.f. 10.06.2005. The Assets & Liabilities relating to 'trading of electricity' which stood in the books of HVPNL as on 31.03.2005 besides trading operations performed by HVPNL for the period from 01.04.2005 to 09.06.2005 were transferred and vested to the Company (HPGCL). 4. Haryana Govt. vide its notification No. 1/1/2008-1Power dated 11.04.2008 transferred the rights relating to Procurement of electricity/UI drawls/dispatches or trading of electricity from HPGCL (Transferor Company) to Uttar Haryana Bijlee Vitran Nigam Limited (UHBVNL) and Dakshin Haryana Bijlee Vitran Nigam Limited (DHBVNL) w.e.f. 01.04.2008. However, the functional arrangements became operational w,e.f. 15.04.2008. The assets & liabilities relating to 'trading business of electricity' which stood in the books of the Company (HPGCL) as on 31st March, 2008 were transferred and vested with the transferee companies as per audited Assets & Liabilities Statement. If. SIGNIFICANT ACCOUNTING POLICIES 1. Statement of Compliance These Standalone Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013, i.e., the Companies (Indian Accounting Standards) Rules, 2015, and subsequent amendments thereto and the provisions of the Electricity Act, 2003 to the extent applicable. The Company adopted Ind AS from 1V April, 2016. 2. Basis of preparation These Standalone Financial Statements have been prepared in accordance with historical cst - convention on accrual basis of accounting. These financial statements are presented in Indian Rupees (INR), which is the company's functional currency. All financial information presented in INR has been rounded off to the nearest crore (upto two decimals), except as stated otherwise. 3. Use of estimates The preparation of financial statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that may impact the application of accounting policies and the reported value of assets, liabilities, revenues, expenses and related disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date. The estimates and management's judgments are based on previous experience and other factors considered reasonable and prudent in the circumstances. Accounting estimates could differ from period to period and actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis and appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates. Revisions to accounting estimates are recognized in the financial statements in the period in which estimates are revised and in any future periods affected and their effects are disclosed in the notes to financial statements. 4. Operating Cycle All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule ill to the Companies Act, 2013 and Ind AS 1 - Presentation of Financial Statements. 5. Property, plant and equipment Items of property, plant and equipment are measured at cost less accumulated depreciation/amortization and accumulated impairment loss, if any. a) Initial recognition and measurement i. Property, Plant & Equipment transferred from HSEB on 14.08.1998 are stated at transfer price and those created by the company are stated at historical cost. ii. Cost includes purchase price, initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located (referred to as decommissioning cost)and expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. iii. Interest, commitment charges and guarantee charges on borrowed funds are capitalized till the asset is available for use. iv. Major spare parts, cost exceeding Rs.5.OOLacs, which meet the definition of property, plant and equipment are capitalized. Parts of an item of property, plant and equipment that have different useful lives are recognized separately. Other spare parts are classified as inventory and recognized in the statement of profit and loss on consumption. v. Major overhauling, stand by equipment and servicing equipments, which meet the definition of property, plant and equipment are capitalized. b) Subsequent costs Subsequent expenditures are recognized as an increase in the carrying amount of the asset when it is probable that future economic benefits associated with these will flow to the enterprise and the cost of the item can be measured reliably.Repairs and maintenance costs are recognized in statement of profit and loss when incurred.The cost of replacing part of an item of property, plant and equipment is recognized in its carrying amount if the recognition criteria are met and the carrying amount of the replaced part is derecognized. Expenditure on major inspection and overhauls of generating unit is capitalized as a replacement when it meets the asset recognition criteria. c) Decommissioning Costs The present value of expected cost for the decommissioning of assets after its use is included in the cost of respective assets if the recognition criteria for a provision are met. d) Derecognition Items of Property, plant and equipment are derecognized when no future economic benefits are expected from their use or upon their disposal. Gain or loss on derecognition of an item of property, plant and equipment is recognized in the statene of profit and loss. J r e) Depreciationlamortization i. Depreciation on Property, Plant & Equipment is charged on Straight Line Method as per rate notified by Ministry of Power for the assets acquired on or before 31.3.2005 and on assets acquired thereafter depreciation is charged as per rates notified by Haryana Electricity Regulatory Commission (HERC) in accordance with Schedule II of the Companies Act, 2013. As per HERC MYT Regulations (no.HERC/26/2012), depreciation shall be calculated annually over the useful life of asset at the rates specified in regulation upto 31st March of 12th year from the commercial date of operation of the asset. From 1st April of 13th year from the date of commercial date of operation of the asset, the remaining depreciable value if any out of 90% of the capital cost of the asset shall be equally spread over the balance useful life of the asset. The Property, Plant & Equipment are depreciated upto 90% of the original cost. ii. Depreciation on additions to/deductions from property, plant and equipment during the year is charged on pro-rata basis-from/up to the month in which the asset is available for use/disposed. 6. Capital work in progress Expenditure incurred on assets under construction (including a project) is carried at cost under Capital Work-in-progress (CWIP). Such cost comprises of purchase price of asset including other costs directly attributable. 7. Intangible assets and intangible assets under development Intangible assets that are acquired/internally generated by the company, which have finite useful lives are measured at cost less accumulated amortization and accumulated impairment losses, if any. a) Initial recognition and measurement An intangible asset is recognized when it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and its cost can be measured reliably. Cost includes any directly attributable incidental expenses necessary to make the assets ready for its intended use. Expenditures incurred which are eligible for capitalization are carried as intangible assets under development till they are ready for their intended use. b) Derecognition An intangible asset is derecognized when no future economic benefits are expected from its use or upon its disposal. Gain or loss on disposal of an item of intangible asset is recognized in the statement of profit and loss. c) Amortization Intangible Assets are amortized over the economic useful life estimated by the management 8. investment in Subsidiaries a) A subsidiary is an entity controlled by the Company. Control exists when the Company has power over the entity or has rights to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entity's returns. b) Investments in subsidiaries are carried at cost. The cost comprises price paid to acquire investment and directly attributable cost. 9. Investment in Joint Ventures and Associates a) A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture, Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. b) An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not have control or joint control over those policies. c) The investment in joint ventures and associates are carried at cost. The cost comprises price paid to acquire investment and directly attributable cost. 10. Regulatory deferral account balances Expenses/income recognized in the statement of profit and loss to the extent recoverable from or payable to the beneficiaries in subsequent periods as per HERC Tariff Regulations are recognized as Regulatory deferral account balances. Regulatory deferral account balances are adjusted in the year in which the same become recoverable from or payable to the beneficiaries. 11. Borrowing costs Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset (asset which takes a substantial period of time to get ready for its intended use or sale) are capitalized as a part of the asset. Other borrowing costs are recognized as an expense in the year in which they are incurred. Income earned on temporary investment of the borrowings pending their expenditure on the qualifying assets is deducted from the borrowing costs eligible for capitalization. When company borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the capitalization of borrowing costs is done based on the weighted average cost of general borrowings that are outstanding during the period and used for the acquisition, construction or production of the qualifying asset. Capitalization of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their intended uses are complete. Borrowing costs include exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. 12. Inventories Inventories of stores, fuel, spares and consumable are valued at lower of weighted average cost or last purchase price. Cost includes cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The diminution in the value of obsolete, unserviceable and surplus stores and spares is ascertained on review and provided for. 13. Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise cash, cheques in hand, demand deposits with banks and short term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. 14. Dry fly ash fund Proceeds from sale of ash/ash products are transferred to Dry fly ash fund in terms of provisions of gazette notification dated 3 November 2009 issued by Ministry of Environment and Forests, Government of India. The fund is utilized towards expenditure on development of infrastructure/facilities, promotion and facilitation activities for use of fly ash. 15. Non-current assets held for sale An asset is classified as non-current asset held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset must be available for immediate sale in its present condition and its sale must be highly probable. Non-current asset held for sale is recorded at lower of its carrying amount and fair value less costs to sell. 16. Provisions, contingent liabilities and contingent assets A provision is recognized if, as a result of a past event, the company has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the liability. When discounting is used, the increase in provision due to passage of time is recognized as a finance/borrowing cost.When some or all of the expenditure required to settle a provision is expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of receivable can be measured reliably. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is Po longer probable that an outflow of resources embodying economic benefits will be require to settle the obligation, the provision is reversed. x-4io Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Contingent liabilities are disclosed on the basis of judgment of the management/independent experts. These are reviewed at each balance sheet date and are adjusted to reflect the current management estimate. 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. It is disclosed in the financial statements when inflow of economic benefits is probable. 17. Foreign currency transactions and translation Transaction in foreign currency is initially recorded in the functional currency by applying spot exchange rate at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated to functional currency at closing rate in effect on the reporting date. Exchange differences arising on settlement or translation of monetary items are recognized in profit or loss in the year in which they arise. Non-monetary assets and liabilities denominated in foreign currency and measured at historical cost are translated to functional currency using the exchange rate in effect on the date of transaction. 18. Revenue Company's revenues arise from sale of power and other income such as surcharge received from customers for delayed payments, sale of scrap, interest from banks, employees, contractors etc. a) Revenue from sale of power Power is sold through distribution Companies owned by the Haryana Government, i.e. UHBVNL & DHBVNL, as per tariff approved by Haryana Electricity Regulatory Commission (HERC) subject to fuel surcharge adjustment, if any as per formulae approved by the HERC, Tariff is based on the capital cost incurred for a specific power plant and primarily comprises two components: capacity charged i.e. a fixed charge that includes depreciation, return on equity, interest on working capital, operating and maintenance expenses, interest on loan and energy charge and variable charge primarily based on fuel costs. Revenue from sale of power is measured at the fair value of the consideration received or receivable. Revenue is recognized when recovery of the consideration is probable, the associated costs and amount of revenue can be estimated reliably. b) Other income Interest income is recognized when no significant uncertainty as to measurability or collectability exists, on a time proportion basis taking into account the amount outstanding and the applicable interest rate, using the effective interest rate method (EIR). Coal claims lodged with coal companies on account of inferior grade of coal received are recognized at the time of acceptance of coal claims by coal companies. The accounting policy is in lines with para 31& 32 of nd AS37 "Provisions, Contingent Liabilities and Contingent Assets", which states as under: "31. An enterprise should not recognize a contingent asset. 32. Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic benefits to the enterprise. An example is a claim that an enterprise is pursuing through legal processes, where the outcome is uncertain." Surcharge on late payments is recognised only after realisation of the same by its customers i.e. UHBVNL & DHBVNL. The accounting policy is in lines with para 18 of Ind AS 18, which states as under: "1. Revenue is recognized only when it is probable that the economic benefits associated with the transaction will flow to the entity. In some cases, this may not be probable until th consideration is received or until an uncertainty is removed." Also para 33 of Ind AS 37 "Provisions, Contingent Liabilities and Contingent Assets" states that "Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate." 19. Employee benefits a) Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further amounts. The company pays fixed contribution to Provident Fund at pre-determined rates to regional provident fund commissioner. b) Defined benefit plans Defined benefit plans are post-employment benefit plans other than defined contribution plans. The company's liability towards gratuity and other post-retirement are in the nature of defined benefit plans.The company's net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods and discounting that benefit to determine the present value of defined benefit obligation. Any unrecognized past service costs are deducted. The discount rate is based on the prevailing market yields of Indian Government securities as at the reporting date that have maturity dates approximating the terms of the company's obligations and that are denominated in the same currency in which the benefits are expected to be paid.The calculation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the company, the recognized asset is limited to the total of any unrecognized past service costs. Any actuarial gains or losses are recognized in OCI in the period in which they arise. c) Other long-term employee benefits Benefits under the company's leave encashment etc constitute other long term employee benefits. The company's net obligation in respect of leave encashment is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value and the fair value of any related assets is deducted. The discount rate is based on the prevailing market yields of Indian government securities as at the reporting date that have maturity dates approximating the terms of the company's obligations. The calculation is performed using the projected unit credit method. Any actuarial gain or losses are recognized in profit or loss in the period in which they arise. d) Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under performance related pay if the company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. 20. Income tax Income tax expense comprises current and deferred tax. Income tax expense is recognized in statement of profit and loss except to the extent that it relates to items recognized in OCI or directly in equity, in which case it is recognized in OCI. Current tax is recognized at the amount expected to be paid to tax authorities using tax rates and tax laws enacted or substantively enacted by the balance sheet date. Deferred tax assets and liabilities are recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences and tax losses can be utilized. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives futurej economic benefits in the form of adjustment to future income tax liability, is considered-ps an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly< MAT is recognized as an asset in the Balance Sheet when it is highly probable that future economic benefit associated with it will flow to the Company. 21. Impairment of non-financial assets The carrying amounts of the company's non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment considering the provisions of Ind AS 36, Impairment of assets. If any such indication exists, then the asset's recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs of disposal and its value in use, In assessing the 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. Where it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs is considered. An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognized in statement of profit or loss. Impairment losses recognized in respect of CGUs are reduced from the carrying amounts of assets of the CGU. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation/amortization, if no impairment loss had been recognized. Reversal of impairment loss is recognized immediately in the statement of profit and loss. 22. Material prior period errors Material prior period errors are corrected retrospectively by restating the comparative amounts for the prior periods presented in which the error occurred. If the error occurred before the earliest prior period presented, the opening balances of assets, liabilities and equity for the earliest period presented are restated. 23. Government grants Government grants including non-monetary grants at fair value are recognized when there is a reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which the entity recognizes as expenses the related costs for which the grants are intended to compensate. Government grants related to assets, including non- monetary grants at fair value, are presented in the balance sheet by setting up the grant as deferred income. 24. Earnings per share Basic earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the company by the weighted average number of equity shares outstanding during the financial year. Diluted earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the company by the weighted average number of equity shares considered for deriving basic earning per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Basic and diluted earnings per equity share are also computed using the earnings amounts excluding as well as including the movements in regulatory deferral account balances. In case of discontinued operations, basic and diluted amounts per share excluding as well as including discontinued operation is disclosed. 25. Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. a) Financial assets A financial asset includes, inter-alia, any asset that is cash, equity instrument of anotherentity or contractual obligation to receive cash or another financial assets or to exchange finpaOr asset or financial liability under condition that are potentially favourable to the Compaty' Financial assets of the Company comprise cash and cash equivalents, Bank Balances, Advances to employees/ contractors, security deposit, claims recoverable etc. Initial recognition and measurement The company recognizes financial assets when it becomes a party to the contractual provisions of the instrument. All financial assets are recognized initially at fair value except for trade receivables which are measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of the financial asset that are not recorded at fair value through profit or loss are added to the fair value,Transaction costs of financial assets carried at fair value through profit or loss are expensed in statement of profit or loss. The company measures the trade receivables at their transaction price if the trade receivables do not contain a significant financing component. A receivable is classified as a 'trade receivable' if it is in respect to the amount due from customers on account of goods sold or services rendered in the ordinary course of business. Subsequent measurement Financial Assets are measured at amortized cost or fair value through Other Comprehensive Income or fair value through Profit or Loss, depending on its business model for managing those financial assets and the assets contractual cash flow characteristics Financial assets carried at amortized cost A financial asset is subsequently measured at the amortized cost if it is held within a business model whose objective is to hold the asset for collecting contractual cash flows and 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. Amortized cost is calculated by EIR method. The EIR amortization is included in finance income in the profit or loss Financial assets at Fair Value through Other Comprehensive Income (FVTOCI) A financial asset is subsequently measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets and 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. Fair value movements are recognized in the OC. Financial assets at Fair Value through Profit or Loss (FVTPL) Any financial asset which does not meet the criteria for categorization as at amortized cost or at FVTOCI is classified as at FVTPL.In addition, the company may elect to classify a debt instrument which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss. Derecognition A financial asset (or where applicable, a part of a financial asset or a part of a company of similar financial assets) is primarily derecognized (i.e. removed from the company's balance sheet) when: - The rights to receive cash flows from the assets have expired, or - The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and either (a) the company has transferred substantially all the risks and rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. Impairment of financial assets In accordance with Ind AS 109, the company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure: - Financial assets that are debt instruments, and are measured at amortized cost eg: loans, deposits, trade receivables and bank balance. - Trade receivables under Ind AS 18. For recognition of impairment loss on other financial assets and risk exposure, the company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12 month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12 month ECL. b) Financial liabilities Financial liabilities of the Company are contractual obligation to deliver cash or another financial asset to another entity or to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the Company. The Company's financial liabilities include loans & borrowings, trade and other payables etc. Initial recognition and measurement All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs. The company's financial liabilities include trade and other payables, loans and borrowings. Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at amortized cost After initial measurement, such financial liabilities are subsequently measured at amortized cost using EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance costs in the profit or loss. This category generally applies to borrowings, trade payables and other contractual liabilities. Financial liabilities at FVTPL Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the profit or loss. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risk are recognized in OCI. These gains/losses are not subsequently transferred to profit and loss. However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognized in the statement of profit or loss. The company has not designated any financial liability as at FVTPL. Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms,of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss. ,,r 1' 」/( ーノン2 NOTE 3 Amount (Rs. in crores) CAPITAL WORK IN PROGRESS As at 3`1 March, As at 31 Particulars 2018 March, 2017 algi - 5.74 1X21C) MW Thermal Project Stage-4 Panipat 1.26 2X250 MW Thermal Project Stage-5 Panipat I x 800 MW Thermal Project Stage - 6 Panipat - 0.08 Hydroelectric Systems, Concrete Pipeplines Surge Tanks, Service Gates Etc 0.16 0.16 Coal Block at Kalyanpur-badatapara 0.13 0.13 1000/1200 MW Thermal Plant at Hisar 0.02 0.47 1500 MW (2x750) Gas based Plant at Faridabad. 0.85 0.64 DCRTPP extention of 660 MW (Supercritical Technology Thermal Power Plant) - 12,60 2 X 300 MW , DCRTP P, Stage-2 Yamuna Nagar 12.86 1.11 Solar Power Plant- Budhkalan 0.02 0.02 Solar Power Plant- RGTPP, Khedar. 0.02 0.02 Solar Power Plant (Rania )-Sirsa 0.00 - Solar Power Plant (FTPS) - Faridabad 0.00 - 6x5 MW Solar System Yamuna Nagar 0.02 0.02 Hydel Power Generating Plant 10.70 8.05 Renovation and Modernization, PTPS, Panipat 0.89 1.60 !Total 25.66 31.90 - r. 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Ltd, 620000 10/_ (Extent of investment is 50% of the Share capital) (620000) (10/-) 0 62 0 62 Investment in Joint Ventures Investment in fully paid shares of NUs Axavalli Power Private Limited on behalf of Haryana Government, a Joint Venture 71,65,04,100 101- with IPGCL and NTPC. Extent of Investment 25% of the share (69,92,54,100) (10/-) 716.50 69915 capital Investment in Saur Urja Nigam Haryana Ltd. 0.05 0.05 (Extent of investment -49% of Share Capital) Total 717.17 699.92 NOTE 7 NON-CURRENT LOANS Amount (Rs in crores.) Particulars As at 31 March, 2018 Asat 31 March, 2017 Security Deposits Loan to related parties Other Loans Secured, considered good Unsecured, considered good 8,74 8.81 Doubtful Total 8.74 8.81 NOTE 8 OTHERS FINANCIAL ASSETS Amount (Rs in crores.) Particulars As at 31 March, 2018 As at 31 March, 2017 Deposits 14.30 15.37 Total 14.30 15.37 NOTE 9 DEFERRED TAX ASSETS Amount (Rs in crores.) Particulars As at 31 March, 2018 As at 31 March, 2017 Deferred Tax Liabilities arising on a/c of Depreciation 2,18777 2,591.19 Sub-Total 2,187.77 2,591.19 Deferred Tax Assets arising on a/c of provision for: (a) Unabsorbed Depreciation / Loss 2,734.88 2,413.98 (b) Disallowed u/s 43 B - 178.07 Sub-Total 2,734.88 2,592.05 Net Total (547.11) (0.86) Tax Impact 189.34 0.30 NOTE 10 OTHER NON-CURRENT ASSETS Amount (Rs in crores.) Particulars As at 31 March, 2018 As at 31 March, 2017 i) Capital advance 1) Advance to suppliers & contractors 12,80 14.60 iii) Contractors material control account (capital) 0.01 0.01 12.81 14.61 ii) Advance Other than capital advance a)Security deposits b)Other Advances: Advances to staff 0.03 0.13 Deferred Employee Benefit Expense 0.30 0.42 0.33 0.56 Total 13.13 15.17 NOTE 11 CURRENT ASSETS Amount (Rs in crores.) Particulars As at 31 March, 2018 As at 31 March, 2017 Raw Materials: (At Cost or net realisable value,Which-ever is lower) (a) Coal Stock 195.29 77876 b) Coal in Transit 76.31 15.02 (c) Oil Stock -Diesal Oil (LDO) LSHS 5.56 4.00 Oil Stock Furnance Oil 12.27 21.37 Sub total 290.42 819.14 Stores and spares Capital Stores and Spares 0.00 0.00 O&M Stores and Spares 187.13 204.43 Material in Transit 0.31 0.41 Sub total 187.44 204.84 Net Total 477.86 1023.98 NOTE 12 FINANCIAL ASSETS- CURRENT TRADE RECEIVABLES Amount (Rs in crores As at 31 March, 2018 As at 31 March, 2017 Particulars Secured, considered good: Unsecured, considered good: i) Uttar Haryana Bijli Vitran Nigam Limited 212.83 132.75 ii) Dakshin Haryana Bijli Vitran Nigam Limited 318.37 190.12 i) Haryana Vidyut Prasaran Nigam Limited 49.12 42.60 iii) Sundry Debtors for sale of Power - PTC 0.00 Unsecured, considered Doubtful: Less: Provision for doubtful debts Grand Total 580.32 365.47 NOTE 13 CASH & CASH EQUIVALENTS Amount (Rs in crores As at 31 March, 2018 As at 31 March, 2017 Particulars a Balances with banks Balances in Current Accounts with Schedules banks 0.21 0.01 b. Cheques, cash, drafts on hand 0.01 - Total 0.22 0.01 NOTE 14 OTHER BANK BALANCE Amount (Rs in crores As at 31 March, 2018 As at 31 March, 2017 Particulars Deposits with original maturity of more than 3 months and 84.71 78.54 maturing with one year Total 84.71 78.54 NOTE 15 OTHER FINANCIAL ASSETS Amount (Rs in crores Particulars As at 31 March, 2018 As at 31 March, 2017 Income accrued and due on staff loans & advances. 1.09 1.78 Income accrued but not due on staff loan & advances 2.98 273 Amount recoverable from employees/ex-employees - 0.38 Fuel related receivables & claims 18.19 34.03 Other claims and receivables. 31.31 28.15 Total 53.57 67.08 NOTE 16 OTHER CURRENT ASSETS Amount (Rs in crores Particulars As at 31 March, 2018 As at 31 March, 2017 Advance other than Capital Advance Advances for O&M Supplies Iworks 7.47 10.61 Advances for fuel supplies 71.14 20.45 Income Tax I Fringe Benefit Tax refundable 3.52 4.20 Income Tax Refunds due 0.73 55.26 MAT Credit entitlement 74.52 65.38 Tax Collection at Source (TCS) Recoverable - Disposal cost Unit 1 to 4 PTPS 0.15 0.15 Preliminary And Pre operative expenses 0.08 0.07 IUT- Personnel Transactions 2,22 IUT - Other Transactions '8AS IUT - Other Power Utilities 20 Employees Provident Fund Trust i 2.46 Others 12.86 112.51 Total 170.48 184.64 �S � � � � а я а о г r а� 4� � fб � г � Са � � r�? � U г • Q С7 iЛ "! � т й] �7 CQ [�7 b- CV ii7 I'- � OD �� W ' ч"' о� С� i'� О С� 4�'7 С1 47! ��""' С7 N СГ7 т О (У7 Q о о [5 С7 4 'Z � сЧ �г с� � � � Q � �% `� г СС�]у C�fl � SЗ` t��7 �.., г � р� N к�� CJ � о С� й'� р� � � V' :С� с? г б7 ч�- �- LS') 'кg• (Q t77 V� � .. � д7 ц� г С+7 ' й] Ф С3 сЛ �`�" т- г С7� tГ1 CV С7 С7 �'. г р 'н' � '� ц7 С � � �Ш , д С7 р7 � � ' д Т3 U Ш С L� D Ri е 1�- t�-- tV Ср �г �7' г�r3 т� t�-^ 11. w+ р3 [� гr7 С7 С� ] С7 о г� о б7 г_С 7+ � � N г 9� N С�. 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' �г:, � � в.,,, '--� ,«. {� � CLi �' С7 С ` . -, ;. .- � и � - tu . � z N t' С .=3 "С3 .� � � � � ,С7 . � F"' S.� Сг. � ..С Q © ¢7 �' . � 3 7�, •ы � ,С {F3 7 '� �,. [? � LLE � }С +� � " -.. � � С] �- ._.� ГS] Т (� CL � � 1.г С3 � � СУ Lt.l 1i! €� ` .. � � � NOTE 19 EQLJJa LHARE CAPITAL No. of Shares As at3I March, 2018 No. of As at 31 March, 2017, Authorised Share c2pita, I Particulars Amt (Rs In c rores.) Shares Amt (Rs In c ro res.) Eq ujty s hares of Rs, 100 0 ear-h 400,00,000 4.000,00 400,00,000 F3,000,00 Issued,Subscribed § Paid up Equity shares of Rs,1000 each, fully paid up 30,048,567 3,004.8567 29,160,46B 2,916-0468 .. Total - 3,004.86 2,916.05 NOTE 19A Reconciliation of the number ofshares outstanding at the beginning and atthe end of the period: As at 31 March, 2018 As at 31 Asa t 31 March, 2 016 March, 2017 Particulars Equj!y Shares at the beginning of the year 29,160,468 28,945,768 28,802 Add Shares alloted durinq the year 888,099 214,700 143,400 Add Shares issued on exercise of Em2loyees.Stock Options I Less Shares Cancelled on Buy BaCk2LEquity Shares Equity Shares at the end of the year 30,048,567 29,1160,468 28,945,768 NOTE 19B Disclosure pursuant to Note no. 6(0)(1)(e) of Part 1, Division 11 of Schedule III to the Companies Act; 2013 Terms & rights attached to equity shares: The Company has only one class of equity shares having face value of Rs.1 000 each. Each share has equal voting right. NOTE 19C Disclosure pursuant to Note no. 6(D)(I)(1) of Part 1, Division It of Schedule III to the Companies Act 2013 Shares held bx holding comipany includirig su-bs[diades &associates of holding comEany) NILZBCGM anyisnothavi[nyanyholdig company) Shares held by ultimate holding company (iricludinq subsidiaries & associates of ultimate hol NIL (The companX is not having anX ultimate holding companyL NOTE ISO Disclosure pursuant to Note no. 6(D)(I)(9) of Part 1, Division 11 of Schedule III to the Companies Act, 2013 Details of shareholders holding more than 5% of the company's shares; As at 31 March, 2018 As at 31 March, 2017 Name of Shareholder No. of Shares % of Holding No. of Shares % of Holding Hon'ble Governer of H a ryan a 28,598,559 9$ 17% 27,710,460 95.03% Haryana Fanioal Corpration 1,450,000 4.83% 1,450,000 4.97% Total 30.048 559 29,160,460 NOTE 19E Disclosure pursuant to Note no. 6(D)(1)(h) of Part 1, Division 11 of Scheduie III to the Companies Act, 2013 NIL NIL Shares reserved for issue under olAbons and Contractsi Commitments for sale of shares under Disinvestment (including terms & am] NOTE 19F Disclosure pursuant to Note no. 6(D)(1)(i) of Part 1, Division 11 of Schedule III to the Companies Act 2013 Particu lars (Du rin 2 the I mmedrate ereced I n2 5 yea rs) Ag2reqate number and class of shares allotted as fully paid uE pursuant to contractis) witho ment being received in cash. NIL NIL Agg Uate number and class of shares allotted as fuIIX paid up by waX of bonus shares. NIL NIL Aggregate ntimber and dass of shares bought back. NIL NIL NOTE 19G Disclosure pursuant to Note no. 6(D)(I)U) of Part 1, Division 11 of Schedule III to the Companies Act, 2013 I Securities convertible into equity Shares issued (Also specify terms. Specify as per eari[est date of conversion in descending order NIL NIL st.riumai from the farthest such datel NOTE 19H Disclosure pursuant to Note no. 6(D)(1)(k) of Part 1, Division 11 of Schedule III to the Companies Act 2013 lCaffs, u,E.id (showing agireiate value of calls unpaid by directors and offlcers NIL 0-1 L NOTE 191 Disclosure pursuant to Note no. 6(D)(1)(i) of Part 1, Division 11 of Schedule III to the Companies Act, 2013 Forfeited t a mou ht orig ln ! aid u p) NIL NIL NOTE 20 OTHER EQUITY Amount (Rs in crores) Particulars P 0 As at 31 March 2018 As at 31 March, 2017 A. Retained Earnings Opening Balance of P&L Surplus (227.97) (9312) (+) Net Profit/(Net Loss) For the current year 430.95 (31,07) (+) Other comprehensive income during the year (199.60) (102.62) (+) Transfer from CSR 0.11 (-)Transfer to CSR Fund (1.26) 3.38 (227.97) Add : Loss of HSEB taken over in 1998 (51.91) (51.91) Closing Balance (48.53) (279.88) B. SHARE APPLICATION MONEY PENDING ALLOTMENT Opening balance of share application money 88.81 2723 Add: Share application money received during the year 3085 Total 119.66 110.28 Less: Transfer to other current liablity Less: Transfer to issue share Capital 88.81 21.47 Closing Balance 30.85 88.81 B. Grants received from World Bank Opening Balance (+) Current Year Transfer 255 0.52 (-) Ltilised in Current Year (2.55) (0.52) Closing Balance D. Dry Fly Ash Fund Opening Balance 296.38 239,31 (+) Current Year Addition 54.72 60.81 (-) Expenditure (4.32) (3.73) Closing Balance 346.78 296.38 E. Energy Saving Certificates Reserve Opening Balance (+) ESC earned during the year 1.54 (-) ESC consumed during the year . Closing Balance 1.54 F. CSR Fund Opening Balance 1.15 (+) Current year Additions - 1.26 (-) Expenses during the year (0.01) (0.12) Closing Balance 1.13 1.15 Gross Total 33177 106.46 NOTE 21 NON-CURRENT BORROWINGS Amount (Ra in crores) Particulars As at 31 March, 2018 As at 31 March, 2017 Non Current Current Non Current Current Secured (A) Term loans: (i) Term Loans from Banks: Punjab National Bank I 143.30 20.51 164.16 20.51 Indian Overseas Bank 753.95 120.65 Andhra Bank 194.82 5800 State Bank of India 211.63 1.52 692.41 101.84 Punjab National Bank II 42.01 20,00 . . State Bank of India 391.99 2.81 Punjab National Bank Ill 279.48 44.80 Punjab National Bank IV 94.46 38.00 (ii) Term Loans from Other Parties: Power Finance Corporation - - 57.95 Rural Electrification Corporation 529.12 75.60 597.85 82.46 NABARD 57.49 57.49 - Default as on the Balance Sheet date in repayment of Borrowings & interest 1. Period of default - Nil 2. Amount - Nil Total 1,749.48 203.24 2,460.67 441.21 Unsecured (a) Bonds/debentures: Provident Fund Bonds (Interest Rate= 8.70%) 47.48 6.78 54.26 6.78 (Guaranteed by the State Govt.) (b) Term loans: (i) Term Loans from Other Parties: Loan from LIC 12.07 (Guaranteed by the State Govt.) (Repayable in 30 half-yearly instalments) Central Loan Assisstance for renovation & modernisation of Thermal Plants 3.25 0.15 3.40 0.15 (Repayable in 40 annual instalments) Default as on the Balance Sheet date in repayment of Borrowings & interest 1. Period of default - Nil 2. Amount - Nil Total 50.73 6.93 5766 19.00 Grand Total 1,800.21 210.17 2,518.33 460.21 !)Punjab National Bank I : Loan of Rs. 200 Crore from Punjab National Bank during the Financial Year 2016-17 and carries interest @ 9.80%(ROI is 8.00% as on 31.03.2018). The Loan is repayable in 39 quarterly instalments of Rs. 5.1275 Crore each. The Loan is secured by first paripassu charge by way of hypothecation1equitable mortgage of movablelimmovable assets of Rajiv Gandhi Thermal Pwer Plant, Khedar ii) State Bank of India(Term Loan): Loan of Rs. 965.48 crare from State Bank of India during the financial year 2015-16 and carries interest @ 9.60%(RO] is 8.45% as on 31.03.2018). The loan is repayable in 38 quarterly instalments Rs. 25.41 crore each. The loan is secured by First pari passu charge in fixed assets of RGTPP, Hisar. During the Financial year 2017-18 Rs. 474.23 Crore had been prepaid to SBI accordingly quarterly installment amount has reduced by the bank to Rs. 16.27 crore. iii)Punjab National Bank II: Loan of Rs. 82.11 Crore from Punjab National Bank during the Financial Year 2017-18 and carries interest @ 8.45% (ROI is 8.00% as on 31.03.2018). The Loan is repayable in 16 quarterly instalments of Rs. 5.00 Crore each. The Loan is secured by First Charge by way of hypothecation of all kinds present and future current Assets including all types of raw materials, stores, Finished goods. Book Debts, Goods in transit etc of the Corporation. iv) State Bank of [ndia(Term Loan): Loan of Rs. 874.60 crore from State Bank of India during the financial year 2017-18 and carries interest @ 8.45%. The loan is repayable in 29 quarterly instalments Rs- 30-16 crore each.The loan is secured by First pat passu charge by way of HypothecationfEquitable Mortagage of movable and immovable assets of Deenbandhu Chottu Ram THermal POwer Project (DCRTPP) at Yamunanagar (Present & Future). During the Financial year 2017-18 aRs. 361.95 crore had been prepaid to 881. V) Punjab Natioani Bank lil: Loan of Rs. 347.18 crore from Punjab National Bank Sector-08, Panchkula during the financial year 2017-18 and carries interest @ 8.00%. The loan is repayable in 31 quarterly instalments Rs- 11.20 crore each. The loan is secured by First par passu charge by way of hypothecation of mavable and immovable assets of Rajiv Gandhi Thermal Power Plant , Khedar, Hisar in the name of corporation. vi)Punjab National Bank IV: Loan of Rs. 170.70 Crore from Punjab National Bank during the Financial Year 2017-18 and carries interest @ 8.45% (ROI is 8.00% as on 31.03.2018). The Loan is repayable in 18 quarterly instalments of Rs. 9.50 Crore each. The Loan is secured by First Charge by way of hypothecation of all kinds present and future current Assets including all types of raw materials, stores. Finished goods, Book Debts, Goods in transit etc of the Corporation. vii) Rural Electrification Corporation Ltd.: A loan of Rs. 1536.03 croe taken from REC and carries rate of interest @ 12.75% per annum. The loan is repayble in 60 qarterly instalment starting from each disbursement of the loan. During the financial year 2016-17 Rs. 200 Crore transfered to Punjab National Bank,Sector-08, Panchkula.The loan is secured agianst mortgage on fixed assets of RGTPP, Hisar. The Loan to be repaid Rs.18.90 crore each quarterly. viii) NABARD : Loan of Rs. 57.49 Crore Taken from NABARD (through State Government) during the financial year 2016-17 and carries interest rate 5.25% for construction of 10 MW Solar Plant at Panipat. The Loan is Repayable in 5 yearly instalment after a moratorium period of two years. ix) Bonds: The Bond an amounting to Rs. 67.82 Crore has been issued I alloted to HPGQL Pension Employees Provident Fund Trust on 1.4.2000 Presnetly the Bond carries rate of interest @7.60% and shall fluctuate from time to time on the basis of interest rate as may bernotlfid dby the Govt. of India IHaryans on the GPF payable annually. The bond shall be redemed at the end of 18th years. x) Central loan Assistance: 12 No. schemes in respect of FTPS was sanctioned for implementation under Accelerate4'Powr D veloprmeot and reform Programme of Govt. of India. During the financial year 2001-02 soft loan amounting to Rs. 5.92 Crore was received fro Vt of da and ophies rate of interest @ 12.50% per annum. The loan is repayable in 40 equal yearly instalment. NOTE22 NON CURRENT PROVISIONS Amount (Rs in crores. Particulars As at 31 March, 2018 As at 31 March, 2017 Provision for a) Employee Benefits 4.89 11 06 b) Others 146.64 135.78 Total 151.53 146,84 NOTE 2Z DEFERRED TAX LIABILITIES Amount (Rs in crores.) Particulars As at 31 March, 2018 As at 31 March, 2017 NOTE24 OTHER NON CURRENT LIABILITIES Amount (Rs in crores.) Particulars As at 31 March, 2018 As at 31 March, 2017 Others - - Deposits and retention from suppliers and contractors 150,18 150.56 Advance Against Depreciation 473.89 473.89 LADT 32.25 32.25 Deposits and retention from suppliers and contractors 92.37 39.49 (Net of deposits received in from of investment etc.) Secruities deposited by Consumers in Cash 0.12 0.08 (Domesatic Supply) Total 748.81 696.28 NOTE 25 CURRENT- BORROWINGS Amount (Rs in crores.) Particulars As at 31 March, 2018 As at 31 March, 2017 Secured (a) Loans repayable on demand: Cash Credit Limits State Bank of India 21.75 2.03 State Bank of Patiala 3.34 6.14 Oriental Bank of Commerce 0.00 1.48 Canara Bank 0.00 Dena Bank 0.00 0.00 Union Bank of India 0.00 - Andhra Bank 0.00 3.00 Corporation Bank (0.00) 0.00 Vijaya Bank 0.00 2,00 HDFC Bank 95.45 - 120.53 14.65 Other Loans (i) From Banks: SBI, Chd. 0.00 0.00 Canara Bank 121.52 56.43 Dena Bank - 75.00 121.52 131.43 Total 242.05 146.08 NOTE 26 CURRENT TRADE PAYABLES Amount (Rs in crores) Particulars As at 31 March, 2018 As at 31 March, 2017 Liabilities to Railways for coal receipts 36.78 34 73 Liabilities to oil suppliers - 0.11 Liabilities for fuel related cost 241.16 255.41 Unpaid coal bills 95.72 118.15 Total 373.66 408.40 NOTE 27 OTHERS FINANCIAL LIABILITIES Amount (Rs in crores) Particulars As at 31 March, 2018 As at 31 March, 2017 a) Current maturities of long term debt 210.17 460.20 (b) Interest accrued 5.01 6.50 (c) Others payable Liability for capital supplies/works 44.50 44.68 Liability for O&M supplies/ works 138.28 108.10 Staff related liabilities 16.44 52.82 Liability for expenses 40.86 30.30 Other liabilities 370.62 419.67 Employees Provident Fund Trust 11.39 Cheque issued but not presented - (0.06) Interest accrued and due on staff security 0.00 0.00 Total 837.26 1,122.22 NOTE 28 OTHER CURRENT LIABILITIES Amount (Rs in crores) Particulars As at 31 March, 2018 As at 31 March, 2017 (a) Revenue received in advance - (b) Other advances (c) Others Statutory Liabilities Goods & Service Tax 1.18 Central Sales Tax - 0.05 Haryana Sale Tax - 0.15 Haryana Works Contarct Tax (WCT) - 0.08 Income tax deducted at source (Contractors) 0.69 1.09 TCS on from Buyer's Receipts 0.02 0.00 Service tax - (0.00) Income tax deducted at source (Employees) 1.30 0.92 Total 3.19 2.30 NOTE 29 CURRENT PROVISIONS Amount (Rs in crores) Particulars As at 31 March, 2018 As at 31 March, 2017 (a) Provision for Employee Benefits Employee Benefits 389.18 334.47 (b) Others: Provision for current tax 4.03 Total 393.20 334 NOTE 30 REVENUE FROM OPERATIONS Amount (Rs in crores Particulars As at 31 March, 2018 As at 31 March, 2017 A) Revenue from of products i) Revenue from sale of power- UHBVNL 2,093.67 1,93734 i!) Revenue from sale of power- DHBVNL 2,818.88 2,677.68 B) Other operating revenues Income from Fuel Surcharge Adjustment 362.37 (105.52) Sale of power- outside agencies 3.79 Miscellaneous Service Charges (penality, fine 2.57 0.10 Total 5,277.48 4,513.39 NOTE 31 OTHER INCOME Amount (Rs in crores) Particulars As at 31 March, 2018 As at 31 March, 2017 11 Interest Income Interest on staff loans and advances 0.77 0.28 Interest on fixed deposits with banks, companies etc. 5.49 5,83 Interest on late payment surcharge by Discom's 677 307.84 2) Other non operating income Income from sale of scrap 6.35 2.75 Income from Staff Welfare Activities 0.03 0.06 Misc. Receipts 12.89 4.74 Provision Reversed 1275 Total 32.30 334.26 NOTE 32 COST OF MATERIAL CONSUMED Amount (Rs in crores) Particulars As at 31 March, 2018 As at 31 March, 2017 FUEL CONSUMPTION (Steam Power Generation) Coal 3,573.09 2,897.51 Coal consuption Incentive- Indigious coal 0.44 192,88 Diesel Oil 31.15 16.10 Furnace Oil 0.04 10.67 Sub Total 3,604.73 3,117.15 Fuel Related Costs 25.53 11.19 Stock Shortage on physical verification of coal Less; Excess found on Physical Verification of (0.02) (5.38) Fuel Related Losses 4.07 2.91 Total 3,634.31 3,125.87 NOTE 33 EMPLOYEES BENEFIT EXPENSES Amount (Rs in crores) Particulars As at 31 March, 2018 As at 31 March, 2017 Salaries & Wages Salaries 199.71 136.73 Local outdoor duty allowance 1.37 1.30 Dearness Allowances 23.50 97.22 Other Allowances 9.00 1425 Generation Incentive 0.04 1.41 Statutory Bonus 0.19 0,40 Sub Total 233.80 251.31 Other Staff Costs Medical Expenses - reimbursement 0.00 - Other Staff Cost - Water Treatment - 0.06 Leave Travel Concession 1.17 5.52 Leave Salary Contribution 0.02 0.02 Pension Contribution 0.02 0,02 Sub Total (other staff costs) 2.12 5.62 Staff Welfare Expenses (on,Canteen, education & Re-creation) 4.37 3.97 Staff Welfare Expenses -Running & Maintenance of dispensary 1.32 1.43 Uniform & Livery Charge 0.15 0.48 Staff Welfare Expenses -Others 0.25 0,29 Diwali Gift 0.30 0.32 Other Benefits:- Terminal benefits 485.01 478.07 EPF- Board Contribution 7.66 5.23 FPS- Board Contribution 0.07 0.06 Recreation Expenses 0.01 0.01 Corpn. Contribution to ESI 0.03 0.03 Payment of ex-gratia grants by the Corporation 0.10 0.04 Staff Welfare- Laon Benefits 0.13 0.34 Other exp 10.82 Sub Total (11) to (16) 510.22 490.26 Grand Total 746.14 747.19 NOTE 34 FINANACE COST Amount (Rs in crores) Particulars As at 31 March, 2018 As at 31 March, 2017 (A) Interest Expense on Bonds 4.22 4.91 Life Insurance Corporation 0.51 2.56 Rural Electrification Corp 59.03 90.77 HVPNL Contigencty Reserve - 0.48 Interest on ARDC/NABARD 3.02 0.89 Power Finance Corporation 1.21 13.47 APRDP Loan 0.44 0.46 Bank of India 6.10 - Indian Overseas Bank 0.41 88.61 Andhra Bank 0.18 25.85 State Bank Of India 39.86 82.64 Corporate loan from State Bank of India - 0.19 Punjab National Bank 14.49 13.20 SBI (DCRTPP) 54.23 Punjab National Bank-(SBI take over) 13.40 - Punjab National Bank-(Andhra Bank Take Over) 12.79 Total Interest on Term Loans 209.89 324.04 (B) Interest on borrowing for working capital 15.38 72.58 (C) Other Borrowing Costs Interest to suppliers / Contractors- Capital 0.01 - Interest on security deposits for staff - 0.00 Rebate allowed for timely payment 70.46 Bank Charges 0.12 0.43 Other Expenses 10.86 11.42 Sub Total 81.45 11.85 Grand Total 306.72 408.47 NOTE 35 DEPRECIATION & AMORTISATION EXPENSE Amount (Rs in crores) Particulars As at 31 March, 2018 As at 31 March, 2017 Depreciation on Tangible Assets 411.39 429,07 Amortisation on Intangible Assets 0.90 146 Total 412.29 430. 3 NOTE 36 OTHER EXPENSES Amount (Rs in crores) Particulars As at 31 March, 2018 As at 31 March, 2017 (A) Administration & General Expenses (1) Property Related Expenses Rent 0.03 0.20 Rates and Taxes 0.04 0.18 Public Liability Insurance 0.00 0.00 Insurance on Assets 1.76 1.90 Sub Total -1 1.84 2.28 (2) Communication Expenses Telephone & Trunk Calls 1.05 1.39 Postage & Telegram 0.03 0.04 Sub Total -2 1.09 1.43 (3) Professional Charges Legal Charges 1.37 1.36 Audit Fees* 0.16 0.10 Consulltancy Charges 3.54 2.49 Technical Fees 0.10 0.11 Other professional charges 0.90 0.67 Service charges for Computerisation 0.01 0.01 Training expenses 0.84 Sub Total-3 6.09 5.58 (4) Conveyance and Travelling Travelleing expenses- Daily Allow., Hotel Charges & other Conveyance Charges 1.22 1.78 Travelleing expenses- Bus/ Railway/ Air fare - 0.01 Vehicle running expenses Petrol & Oil (other than Motor Cars) 0.89 1.02 Vehicle running expenses Petrol & Oil (Motor Car) 0.83 0.93 Vehicle licence and registration fees- Other than Car 0.00 0.02 Expenses on hiring of vehicles 4.55 4.42 Sub Total-4 7.48 8.18 (5) Other expenses Fees and subscription 1.88 2.04 Books and Periodicals 0.00 0.01 Printing and Stationery 0.55 0.57 Advertisement 0.29 0.25 Electricity Charges 1.84 1.82 Water Charges 0.01 0.01 Entertainment 0.14 0.20 Running & Upkeeping of Photo state Machine - 0.00 Expenditure of News Papers 0.03 0.03 Generator Diesal 0.00 0.00 Watch & ward Expenses for disposal/sale of unit 1 to 4 0.07 0.04 Contigency Expenses for disposal/sale of unit 1 to 4 0.00 0.03 Admin & General Expenses - Water Treatment 0.01 0.00 Admn & General Expenses relating to Ash 0.00 - Misc. expenses 3.37 (2.26) Sub Total-5 8.19 2.73 (6) Material Related Expenses Other freight 0.27 0.27 Transit Insurance 0.00 0.00 Vehicle Running expenses truck/ delivery vans 0.03 0.03 Incidental stores expenses 0.05 01 Commission on auction of Stores 0.81 00 Sub Total -6 1.16 0.38 Total (A) 25.85 20,58 (B)Repairs & Maintenance to: Plant & Machinery 114.35 101.30 Buildings-Guest House 0.08 0.03 Buildings-Others 7.35 12.24 Other Civil Works 7.61 7.43 Hydraulic Works 2.10 0.75 Lines Cable, network etc. 6.61 0.93 Vehicles- Other than motor car 0.07 0.21 Vehicles - Motor Cars 0.33 0.18 Furniture & Fixtures 0.01 3.01 Office Equipments 0.18 0.08 sub total 138.68 123.16 Less:, Expenses capitalised - Gross Total 138.68 123.16 Ogerating Expenses Cost of Water 16.33 14.82 Lubricants & consumable stores 6.09 6.27 Station supplies 0.85 1.04 Sub total 23.27 22.12 Total (B) 161.95 145.28 (C) Other Expenses: Cost of Trading/Manufacturing Activities 4.22 Loss on obsolescence of stores etc. -0.09 Loss on exchange rate variation 0.01 0.03 Oer debits- Written off 0.85 (.62) Total (C)i 5.08 I(9.50) Grand Total (A) + (B) + (C) 192.88 156.37 NOTE 36A DETAILS OF PAYMENTS MADE TO AUDITORS Amo u n t (Rs in crores) Particulars As at 31 March, 2018 As at 31 March, 2017 Payments to the auditor as a. Statutory Auditor, 0.05 0.05 Total 0.05 0.051 -73N Note-37 PROFIT / (LOSS) FROM DISCONTINUED OPERATIONS Amount (Rs in crores.) Particulars As at 31 March 2018 As at 31 March 2017 Gain / (Loss) on disposal of assets I settlement of liabilities 26.93 40.58 Other non operating income 0.23 - Total 27.16 40.58 Less Other Expenses (1.98) 19.55 Total 25.17 60.13 NOTE 38 EARNINGS PER SHARE (EPS) Particulars As at 31 March, 2018 As at 31 March, 2017 Basic: Continuing operations Net profit / (loss) for the year from continuing operations attributable to the equity shareholders (before net movement in regulatory deferral account 411.15 56.87 balance) Weighted average number of equity shares 29852065 29160468 Earnings per share from continuing operations - Basic 13773 19.50 (Face Value of Rs. 1000/- each) Diluted : Continuing operations Net profit / (loss) for the year from continuing operations attributable to the equity shareholders (before net movement in regulatory deferral account 411.15 56.87 balance) Weighted average number of equity shares 29852065 29160468 Add: Weighted Average Outstanding Shares related 308500 888100 to Share Application Money (in Nos.) Nos. of Shares for Diluted Earning per Share of Rs. 30160565 30048568 1000/- each (in Nos.) Earnings per share from continuing operations - Basic 136.32 18.93 (Face Value of Rs. 10001- each Basic: Continuing operations Net profit / (loss) for the year from continuing operations attributable to the equity shareholders (after net movement in regulatory deferral account 411.15 (91.20) balance) Weighted average number of equity shares 29852065 29160468 Earnings per share from continuing operations - Basic 137.73 (31.27) (Face Value of Rs. 1000/- each) Diluted: Continuing operations Net profit / (loss) for the year from continuing operations attributable to the equity shareholders (after net movement in regulatory deferral account 411.15 (91.20) balance) Weighted average number of equity shares 29852065 29160468 Add: Weighted Average Outstanding Shares related 308500 888100 to Share Application Money (in Nos.) Nos. of Shares for Diluted Earning per Share of Rs. 30160565 30048568 1000/- each (in Nos.) Earnings per share from continuing operations - Basic 136.32 (30.35) Total operations - Basic EPS Net profit / (loss) for the year attributable to the equity 430.95 (31,07) Weighted average number of equity shares 29852065 29160468 Earnings per share - Basic (Face Value of Rs. 1000/- 144.36 (10.65) Total operations - Diluted EPS Net profit / (loss) for the year attributable to the equity 430.95 (31.07) Weighted average number of equity shares 29852065 29160468 Add: Weighted Average Outstanding Shares related 308500 888100 Nos. of Shares for Diluted Earning per Share of Rs. 30160565 30048568 Earnings per share from continuing operations - Basic 142.88 (10.34) NOTE 39 VALUE OF IMPORTS CALCULATED ON CI.F. BASIS Amount (Rs in crores.) As at 31 March, As at 31 March. Particulars 2018 2017 Value of imports calculated on C.I.F basis by the company during the financial year in respect of - .Raw materials; - - II.Components and spare parts; 3.88 14.68 IlO.Capital goods Total 3.88 14.68 NOTE 40 EXPENDITURE I PAYMENTS IN FOREIGN CURRENCY Amount (Rs in crores.) As at 31 March, As at 31 March, Particulars 2018 2017 Expenditure in foreign currency on account of Professional and consultation fees - 0.16 Other matters 2.79 Total 2.79 0.16 NOTE 41 DETAILS OF CONSUMPTION OF IMPORTED AND INDIGENOUS ITEMS Amount (Rs in crores.) As at 31 March, As at 31 March, Particulars 2018 2017 Value of imported Raw Materials consumed - - Value of Indigenous Raw Materials consumed 3,573.09 2,897.51 Total 3,573.09 2,897.51 Percentage of imported Raw Materials consumed Percentage of Indigenous Raw Materials consumed 100% 100% Value of imported Spare Parts & Components consumed 5.55 5.18 Value of Indigenous Spare Parts & Components consumed 127.55 96.03 Total 133.10 101.21 Percentage of imported Spare Parts & Components consumed 4.17% 5.12% Percentage of indigeneous Spare Parts & Components consumed 95.83% 94.88% NOTE 42 1. INCOME TAX EXPENSE: _Amount (Rs in crores.) Particulars As at 31 March, 2018 As at 31 March, 2017 A. Amount recognised in profit or loss Current tax Current tax for the year 9.66 Adjustments/(credits) related to MAT credit (9.14) (0.17) Total current tax 0.52 (0.17) Deferred Tax Deferred tax for the year 83.42 (79.12) Adjustments/(credits) related to previous years - Total deferred tax 83.42 (79.12) TOTAL 83.93 (79.30) B. Amount Recognised in other comprehensive income The tax (charge)/credit arising on income and expenses recognised in other comprehensive income is as follows: Remeasurement gains/losses on defined benefits plans 105.63 54.31 TOTAL 105.63 54.31 C. Reconciliation of effective tax rate The income tax expenses for the year can be reconciled to the accounting profit as follows: Profit before tax 42.82 (108.71) Income tax expenses calculated 14.82 (37.62) Effect of different tax rate, current tax based on MAT (5.16) 37.62 Deferred Tax recognition 189.05 (24.81) Total (179.39) 24.81 Adjustments recognized in the current year in relation MAT credit 9.14 (0.17) Income tax recognized in profit or loss (188.53) 24.98 HARYANA POWER GENERATION CORPORATION LIMITED Corporate Identity Number: U45207JIR1997SGCO33517 Notes forming part of the financial statement for the year ended March 31, 2018, Conid... NOTE -- 43 Additional Informaint Financial Statements: 1The Company has recognised sale of fly ash amounting to Rs.10.18 crores (previous year Rs. 13.26 crores), Rs.23.05 crores (previous year Rs. 25.53 crores) and Rs.18.62 crores (previous year Rs. 21.58 crores) in respect of PTPS, Panipat, DCRTPP, Yamuna Nagar and RGTPP, Hisar respectively. In view of MO&EF notification dated 03-11-2009, the amount collected from sale of fly ash is to be utilized only for development of infrastructure or facility, promotion & facilitation activities for use of fly ash, thus the balance in Dry Fly Ash Fund amounting Rs.346.78 crores (PY: Rs.239.39 crores) has been kept in separate account under the head 'Other Equity" in the financial statements for the year ended March 31, 2018 with coMparable recognition for the previous year. In the earlier years, Dry Fly Ash Fund was treated as a liability and was disclosed under head "Other current liabilities", The details of Dry Fly Ash Fund as on 31.03.2018 is as follows; (Rs. in Crores) Particulars PTPS, Panipat DCRTPP, RGTPP, Hisar Total Yamunanagar O enin Balance as on 01.04.2017 157.27 88.11 51.01 Add: Funds collected from sale of dry 10.18 23-05 1.02 51.85 fl ash, durin Financial Year 2017-18 23.05 18.62 Other Adjustments Closingta BaacAso 1-321 167.45 110.216 69.12 346.78 Financial Year 2017-18 on: Revenue activ0ities11.4 Capital activities 0.9 0. 1.4 (A-B) 2. The company is in receipt of Global Environment Facility (GEF) grant from World Bank and till date the total grant received is Rs. 3.07 crores. The world bank released the grant component for Additional Central Assistance for Exterally Aided Projects under the reimbursement procedure for the aforesaid project on back to back basis against Grant Agreement dated 17-12-2009 as below: Grant: Coal Fired Generation Rehabilitation Project Global Environment Facility (GEF) No. TF094676-IN (Rs, in crores) Particulars 2017-18 Upto 2016-17 Total Grant received Consultanc service for EADD Consultanc service for RSA Consultancy service for Desi2n Consultancy service for Assessment of 0 & M practices Consultancy assignment for Development of Sops and SMPs and 0.09 0.5 0.34 training for unit-6 to 8 Panipat. Audit of Auxiliary Power Condenser Vacuum and consumption of 1.80 0.05 1.85 DM water at PTPS, Panipat. Consultancy assignment for Strengthening of the Fire Fighting 0.09 0.09 System of coal handling plant PTPS, Panipat. Consultancy assignment for Water Balance /Optimization Study 0.66 0.13 0.79 at Unit-6-8, PTPS, Panipt and Unit-1 -2 RGTPP, Hlsar. Total 2.55 0.52 3.07 Grant utilized 2.55 0.52 3.0 Closing balance 3. Determination of terminal liabilities viz. Pension, Gratuity, Leave encashment and Monthly Financial Assistance etc has been made on actuarial valuation basis and as per the certificate of the Actuary. Accordingly, company has recognised provision amounting to Rs.179.78 crores on account of employee benefits in its Statement of Profit & Loss and Rs. 305.23 crores on account of Remeasurement of net defined benefit liability/asset in "Statement of Other Comprehensive Income', thus totalling to Rs.485.01 crores based upon the actuarial report from a certified actuary valuer. The Company has created a Trust namely HPGCL Employees Pension Fund Trust during 1998-99 to manage the fund for Pension, Gratuity and Leave encashment liabilities for the benefit of its employees. (Y HARYANA POWER GENERATION CORPORATION LIMITED Corporate Identity Number: U45207HR1997SGCO33517 Notes forming part of the financial statement for the year ended March 31, 2018, Contd... For the year ended 316S March, 2018 Particulars (Amt. in Crores) Pension Gratuity Leave I__ IEncashment Funded Unfunded I Components of Employer Expenses Recognized in Profit or loss 1 Current Service Cost 21.52 6.50 5.42 2 Past Service Cost - - - 3 Net Interest Cost 94.54 17.44 34.36 4 Total expense recognized in the 116.06 23.94 39.78 Statement of Profit and Loss Re-measurements recognized in Other Comprehensive Income 5 Return on plan assets (excluding (90.91) - amounts included in Net Interest Cost) 6 Effect of changes in financial 808.23 (53.97) (114.50) assumptions 7 Effect of experience adjustments - (43.57) (200.05) 8 Total re-measurements included in 717.32 (97.54) (314.55) Other Comprehensive Income Total defined benefit cost recognized in 833.38 (73.60) (274.77) Profit and Loss and Other Comprehensive Income (4+8) The current service cost, past service cost and net interest cost for the year have been recognised in "Employee Cost". The remeasurements of the net defined benefit liability are included in Other Comprehensive Income. II Changes in defined Benefit Obligation For the year ended 31r" March, 2018 (DBO) (Amt. in Crores) Pension Gratuity Leave Encashment 1 Present Value of DBO at the 1260.49 232.59 458.10 beginning of the year 2 Current Service Cost 21.52 6.50 5.43 3 Past Service Cost 4 Interest Cost 94.54 17.44 34.35 5 Remeasurement gains/(losses): a. Effect of changes in financial 808.24 (53.97) (114.50) ___ assumptions b. Effect of experience adjustments (43.57) (200.05) 6 Benefits Paid (95.84) 7 Present Value of DBO at the end the 208895 158.99 183.33 ,yearI Ill Actuaria n Assumptions As at 31st March, 2018 DiscunttRate (% 1 Pens on 7.0% P.A. uity 7.5% P.A. 2 Gratuity 3 eaeEnasmnt 7.5%/ P.A. The estimates of future salary increases, considered n actuarial valuations take account of inflationj seniority, promotion and other relevant factors. 4 (a) Investment in Aravali Power Company Pvt Ltd : NTPC is executing 1500 MW (3 X 500) coa based Thermal Plant at Jhajjar, Haryana in joint venture with Govt. of NCR Delhi and Company on behalf of Government of Haryana. The total cost of the project has been estimated at Rs. 9,600 crores approximately. The project is being funded in the ratio of 70:30 i.e. debt equity and HPGCL, on behalf of Haryana Govt, has entered into a joint venture agreement with NTPC and Indraprasthe Gas Limited, to provide equity of Rs. 720.0 crores i,e. 25% of total equity of APCPL. Till 31/03/2018, company has invested Rs. 716.50 crore for the project which has been treated as non-current investment of the Company. Out of the total invested amount, shares of Rs,716.50 crores (Previous year Rs. 699.25 crores have been allotted in favour of company and balance shares to be allotted is nil (Previous year nil). The details of JV is as under: Interest in Joint Ventures The Company has the following investment in a jointly controlled entity. Particulars Proportion of ownership in,the Cepany 31st March, 2018 31s March, 2017 Aravalli Power Private Limited 25% 25% (on behalf of Government of Haryana) HARYANA POWER GENERATION CORPORATION LIMITED Corporate Identity Number: U45207HR1997SGCO33517 Notes forming part of the financial statement for the year ended March 31, 2018, Contd.. Other details: Name of Place of % of Relatio Accounting Quoted fair value Carrying Entity Business ownership nship Method amount in interest crores Aravalli Haryana 25% JV Equity Method 31.03.2018 N.A. 716.50 Power Private 31,03.2017 N.A. 699.25 Limited Note: 1. Being unlisted entities quoted fair value is not available. 2. The company is engaged in business of generation of power. Summarised Balance Sheet Particulars As at March 31, 2018 As at March 31, 2017 Current Assets Cash & Cash Equivalents 1.15 0.0012 Other Assets 3250.03 3363.08 Total Current Assets 3254.64 3363.09 Total Non-Current Assets 7010.39 7452.25 Current Liabilities Current Financial Liabilities (excluding trade & 132.68 554.28 other payable and provisions) Other Liabilities 799.07 1135.64 Total Non Current Liabilities 4097.16 4397.40 Net Assets 5236.12 4729.19 Summarised Statement of Profit & Loss Particulars As at March 31, 2018 As at March 31, 2017 Revenue 4146.32 4067.74 Interest Income 1.08 1.12 Cost of Raw Materials & components consumed 2369.48 1922.36 Depreciation & Amortisation 417.38 414.42 Finance Cost 538.21 Employee Cost 77.61 59.07 Other Expenses 133.00 132.66 Profit before tax 73093 1002.14 Profit for the year (continuing operations) 577.76 787.20 Total comprehensive income for the year 577.68 787.05 (continuing operations) (b) Investment in Yamuna Coal Company Private Limited : Yamuna Coal Company Private Limited (YCCPL) was incorporated in 2009 with objective of mining and agglomeration of hard coal. It is a jointly owned entity with HPGCL holding 50% of share capital, on behalf of Haryana Govt. The balance 50% holding is in hands of Delhi Govt through Indraprastha Power Generation Company Limited, Interest in JV : Particulars of investment Proportion of ownership in the Company 31st March, 2018 31st March, 2017 Yamuna Coal Company Private Limited 50% 50% (on behalf of Government of Haryana) Other details: Name of Entity Place of % of Relatio Accounting Quoted fair value Carrying Business ownership nship Method amount interest (Rs. in crores) Yamuna Coal Haryana 50% JV Equity Method 31.03.2018 N.A. 0.62 Company Private Limited 31,03.2017 N.A 0.62 HARYANA POWER GENERATION CORPORATION LIMITED Corporate Identity Number: U45207HR1997SGCO33517 Notes forming part of the financial statement for the year ended March 31, 2018, Contd... Note: 1. Being unlisted entities quoted fair value is not available. 2- The company is not carrying on any operating activities Summarised Balance Sheet Particulars As at March 31, 2018 As at March 31, 2017 Current Assets Cash & Cash Equivalents 0.92 0.30 Other Assets 0.00 0.64 Total Current Assets 0.92 0.94 Total Non-Current Assets 0.00 0.00 Current Liabilities Current Financial Liabilities 0.0017 0.03 (excluding trade & other payable and provisions) Other Liabilities 0,00 0.006 Total Non Current Liabilities 0.00 0.00 Net Assets 0.92 0.91 Summarised Statement of Profit & Loss Particulars As at March 31, 2018 As at March 31, 2017 Revenue Interest Income 0.04 0.07 Cost of Raw Materials & components consumed Depreciation & Amortisation --- Finance Cost Employee Cost 0 Other Expenses 0.03 0.03 Profit before tax 0.01 0.04 Profit for the year (continuing operations) 0.009 0.03 otal comprehensive income for the year 0.009 0.03 (continuing operations) (c) Investment in Saur Urja Nigam Haryana Limited Saur Urja Nigam Haryana Limited (SUNHL) was incorporated on 09th June 2016 with objective of developing/setting up of solar power parks/projects in Haryana. It is a jointly owned entity with HPGCL holding 49% of share capital, on behalf of Haryana Govt. The balance 51% holding is in hands of Haryana State Industrial & Infrastructure Development Corporation Limited. Interest in JV; Particulars of investment Proportion of ownership in the Company 31st March, 2018 31st March, 2017 Saur Urja Nigam Haryana Limited (on behalf of 49% 49% Government of Haryana) Other details: Name of Place of % of Relatio Accounting Quoted fair value Carrying Entity Business ownership nship Method coRs interest crores Saur Urja Haryana 49% JV Equity Method 31.03.2018 N.A. 0,05 Nigam Haryana 31.03.2017 NA 005 Limited Note: Being unlisted entities quoted fair value is not available. HARYANA POWER GENERATION CORPORATION LIMITED Corporate Identity Number: U45207HR1997SGCO33517 Notes forming part of the financial statement for the year ended March 31, 2018, Contd. Summarised Balance Sheet Particulars As at March 31, 2018 As at March 31, 2017 Current Assets Cash & Cash Equivalents 0.01 0.014 Other Assets 0.00 - Total Current Assets 0.01 0.014 Total Non-Current Assets 0,05 0.072 Current Liabilities Current Financial Liabilities (excluding trade & other payable - 0.009 and provisions) Other Liabilities 0.03 Total Non Current Liabilities - 0.000 Net Assets 0.03 0.077 Summarised Statement of Profit & Loss Particulars As at March 31, 2018 As at March 31, 2017 Revenue Other Income 0.00 Cost of Raw Materials & components consumed Depreciation & Amortisation 0.018 0.018 Finance Cost Employee Cost . . Other Expenses 0.02 0.005 Profit before tax (0.04) (0.023) Profit for the year (continuing operations) (0.04) (0.023) Total comprehensive income for the year (0.04) (0.023) (continuing operations)_ 5. Disclosure on Financial Instruments and Risk Factors (a) Financial Instruments by category Rs in crores Particulars Note As at As at No, 31 March 2018 31 March 2017 Financial Assets Non-Current Financial Assets Investments 6 717,17 699.92 Loans 7 8.74 81 Others 8 14.30 15.37 Current Financial Assets Trade receivables 12 580.32 365.47 Cash and cash equivalents 13 0.22 0.01 Bank balances other than 14 84.71 78.54 above Other financial assets 15 53.57 67.08 1459.03 1,235.20 Financial Liabilities Non-Current Financial Liabilities Borrowings 21 1800.21 2,518.33 Current Financial Liabilities Borrowings 25 242.05 146.08 Trade payables 26 373.66 408.40 Others 27 837.26 1122.22 j 3253.18 4,195.03 HARYANA POWER GENERATION CORPORATION LIMITED Corporate Identity Number: U45207IR1997SGCO33517 Notes forming part of the financial statement for the year ended March 31, 2018, Contd... (b) Financial risk factors The Company's principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company's operations. The Company has loan and other receivables trade and other receivables investments and cash and short-term deposits that arise directly from its operations. The Company's activities expose it to a variety of financial risks: i) Credit risk Credit isK is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activties (primarily trade receivables) and from its financing activities including deposits with banks and financial institutions. a) Trade Receivables The Company extends credit to custom-ers in normal course of business, The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are mainly state government authorities and operate in largely independent markets. The level of receivables as on 31/03/2018 is even less than the norm as allowed by HERC. b) Financial assets at amortised cost Employee Loans: The Company has given loans to employees at concessional rates as per the Company's policy which has been measured at amortised cost at Balance Sheet date. The recovery of the loan is on fixed instalment basis from the monthly salary of the employees. Management has assessed the past data and does not envisage any probability of default on these loans since the repayment period is measured in accordance with balance working life of employee and recovery of loan is charged to salary. c) Financial instruments and cash deposits The Company considers factors such as track record, sizel networth of the institution/bank, market reputation and service standards and limits and policies as approved by the board of directors to select the banks with which balances and deposits are maintained. The Company invests surplus cash in short term deposits with scheduled Banks, ii) Liquidity risk. Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. The Company's objective is to maintain optimum levels of liquidity at all times to meet its cash and collateral requirements. iii) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks. Financial instruments affected by market risk include loans and borrowings, deposits, investments. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. 6. Regulatory deferral accounts - Expenses/ income recognized in the Statement of Profit & Loss to the extent recoverable from or payable to the beneficiaries in subsequent periods are recognized as 'Regulatory deferral account balances' as per Ind AS-i 14. Regulatory deferral account balances are adjusted from the year in which the same become recoverable from or payable to the beneficiaries. As at the end of 31st March, 2017, Regulatory Deferral balance has been recognised as Nil considering the methodology of computation of such amounts to the extent recoverable 7. The Company had discontinued its Faridabad Thermal Power Station (FTPS) of 165 MW in year 201 0-11. During the FY2016-17, company has entered into a contract with MSTC for dismantlement and disposal of FTPS, Faridabad Plant, for Rs.66.24 crores. The amount has been paid by MSTC in five equal installments, the last two installments amounting Rs.26.49 crores, have been received in FY2017-18 & recognized in note no 37, Profit/Loss from Discontinuing operations, in FY201 7-18S. 8. The Company has given 15 acres land to DAV College and Management Society under finance lease agreement for the period of 99 years on a nominal rate of Re,1 per annum from April 1986. Unexpired lease period is 67 years 9. Items of fixed assets that have been retired from active use and are held for disposal are stated at residual value of 10% of historical cost. During the year 2017-1 8, the residual value of assets of PTPS, Panipat unit I to IV along with value of land of FTPS, Farida bad has been shown as Assets held for sale in Note no. 17 HARYANA POWER GENERATION CORPORATION LIMITED Corporate Identity Number: U45207HR1997SGCO33517 Notes forning part of the financial statement for the year ended March 31, 2018, Contd... 10, Though the company has earned a profit (before tax) of Rs.42.82 crores in 2017-18, there is average loss of Rs. 73.81 crores on the basis of preceding three years (FY2017-18 Rs,42.82 crores, FY2016-17 Rs.(108,71 crores), FY2015-16 Rs.(155.53 crores)}. Hence, company is not liable to incur any expenditure required under section 135 of the Companies Act 2013. 11, The Company has taken over losses of Rs. 51.91 crores of the erstwhile HSEB in pursuance to the Transfer Scheme notif[cation by the Govt. of Haryana dated 14-08-1998 and 13-08-1999. 12. Micro and Medium scale business entities: In view of insufficient information from suppliers regarding their status as Micro, Small and Medium Enterprises, the amount payable to them as at the end of financial year cannot be ascertained separately. 13. Other current assets includes Rs.3.52 Crores (previous year Rs. 3.52 Crores) deposited as advance Fringe Benefit Tax with Income Tax Department for first three quarters of the financial year 2005-06 towards contribution made to Employee Pension Fund. Company filed a writ petition in Hon'ble Punjab & Haryana High Court Challenging levy of Fringe benefit Tax on contribution made towards Pension Fund of employees which was admitted by Hon'ble Court and granted an interim stay of operation u/s 115 WB(1)(c) of income Tax Act, 1961 (Order dated 06.02.2006). Now, the case stands transferred to the Hon'ble Supreme Court of India at the request of Union of India. 14. Since the HPGCL is engaged in Generation of Electricity and all its generated electricity is sold in the domestic market, hence there is only one Business Segment and geographical segment. Information about major customers (Rs.crores) Revenue from customers Revenue from customers as a S.No. Name of the customer % of total revenue FY 2017-18 FY 2016-17 FY 2017-18 FY-2016-17 1. UHBVNL 2093.67 1937.34 39.67% 42.92% Adjustment for Fuel 159.82 (46.60) 3.03% (1.03)% Surcharge Adjustment 1890.74 42.70% 41.89% 2. DHBVNL 2818.88 2677.68 53.41% 59.32% Adjustment for Fuel 202.55 (58.92) 3.84% (1.30)% Surcharge Adjustment 2618.76 57-25% 58.02% Total (1+2) 5275.44 4509.50 99.95% 99.91% Total Revenue 5277.48 4513.39 100.00% 100.00% 15. Company has filed a appeal against arbitration award in the case of Adani Power and has pledged a fixed deposit receipt of Rs.83.47 crores in favour of District & Session Judge, Panchkula. The same has been disclosed as other bank balance in note no 14. The Hon'b[e HC in its order dated 21.05.2018 has ordered that said FDR be released in favour of MSTC Ltd against an irrevocable bank guarantee. 16. In the case of GE Power System (previously known as Alstom Power), HPGCL, in compliance with interim order of Hon'ble Supreme Court has released a payment of Rs.100.0 crores against total claim of Rs.160.57 crores to GE Power System and the company GE Power System has submitted a bank guarantee of Rs.100,0 crores to Hon'ble Supreme Court. 17. In term of Indian Accounting Standard INDAS 36, according to the assessment made by the management there is no indication that the assets of the company are impaired as on the Balance Sheet date. Accordingly, the Company has not provided any impairment loss in the accounts during the year. 18. Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) (Amendment) Rules, 2018 on 28th March, 2018 notifying Ind AS 115, 'Revenue from Contracts with Customers' and amending Ind AS 21 'The Effects of Changes in Foreign Exchange Rates'; Ind AS 12 'Income Taxes'. The same are applicable for financial statements pertaining to annual periods beginning on or after 1st April, 2018, The Company expects that there will be no material impact on the financial statements resulting from the implementation of these standards. 19. Previous year's figure have been reworked, regrouped, rearranged and reclassified wherever deemed necessary to make them comparable as under: HARYANA POWER GENERATION CORPORATION LIMITED Corporate Identity Number: U45207HR1997SGCO33517 Notes forming part of the financial statement for the year ended March 31, 2018, Contd... BALANCE SHEET AS AT THE BEGINNING OF PREVIOUS PERIOD: (Rs. In crores) As at 31st March, 2017 As at 1st April, 2016 Adjust Reported Adjustments, Restated Reported ments, Restated Particulars Amount If any Amount Amount if any Amount ASSETS 1 Non-current assets Property, plant and equipment 55897.91 - 5,697.91 6,216.70 - 6,21670 Capital work-in-progress 31.90 - 31.90 44.21 - 44.21 Intangible assets 6.58 - 6.58 8.04 - 8.04 Intangible assets under development 0.10 - 0.10 0.10 - 0.10 Financial assets - - Investments 699.94 (0.02) 699.92 666.69 - 666.69 Loans 8.81 - 8.81 9.65 - 9.65 Others 15.37 - 15.37 16.12 - 16.12 Deferred tax assets (net) 0.30 - 0.30 25.11 - 25.11 Other non-current assets 15,17 - 15.17 17.52 - 17.52 2 Current assets Inventories 1,023,98 - 1,023.98 951.45 - 951.45 Financial assets - - Trade receivables 365.47 - 365.47 1,187.62 - 1,187.62 Cash and cash equivalents 0.01 - 0.01 0.43 - 0.43 Bank balances other than above 78.54 - 78.54 73.31 - 73.31 Loans - Others 67.06 0.02 67.08 79.41 - 79.41 Current tax assets - Other current assets 184.64 - 184.64 198,85 - 198.85 Assets held for sale 1.64 - 1.64 1.64 - 1.64 Regulatory Deferral Account Debit Balances - - - 148.07 - 148,07 Total Assets 8,397.42 (0.00) 8,397.42 9,644.92 - 9,644.92 EQUITY AND LIABILITIES Equity Equity share capital 2,916.05 - 2,916.05 2,894.58 - 2,894.58 Other equity 106.46 - 106.46 121.51 - 121.51 Liabilities - I Non-current liabilities Financial liabilities Borrowings 2,518.33 - 2,518.33 3,034.36 - 3,034.36 Other financial liabilities - Provisions 146.84 - 146.84 159.85 - 159,85 Deferred tax liabilities (net) - - - Other non-current liabilities 150.64 545.64 696.28 197.92 - 197.92 2 Current liabilities - HARYANA POWER GENERATION CORPORATION LIMITED Corporate Identity Number: U45207HRI997SGCO33517 Notes forming part of the financial statement for the year ended March 31, 2018, Contd.. Financial liabilities Borrowings 146.08 - 146.08 1,252.18 1,252.18 Trade payables 408.40 - 408.40 246.16 - 246.16 Other financial liabilities 1,635.61 (513.39) 1,122.22 1,613.76 - 1,613.76 Other current liabilities 34.55 (32.25) 2.30 37.64 - 37.64 Provisions 334.47 - 334.47 74.59 - 74.59 Current tax liabilities net - - 12.36 - 12.36 T o ta l E q u ity a n d L ia b ilitie s 8 ,3 9 7 ,4 2 0 .0 0 8 ,3 9 7 .4 2 9 ,6 4 4 .9 2 - 9 ,6 449 2 20. Contingent Liabilities and Capital Commitments: i) There is contingent liability of Rs.4190.46 crores (previous year 3977.25 crore) in respect of cases pending in various courts as under (Rs. in Crores) Sr. Particulars 2017-18 2016-17 No. T a'u2r 1. Employee Cases (Faridabad) 1.38 1.46 2. EPF claim from RPFC (Faridabad) 0.19 0.19 Arbitration case of M/s Voltas Limited, Mumbai. 30.06 28.93 (Faridabad) 4, Arbitration case of M/s Associated Builder (Faridabad) 7.03 5.48 5. Liability for interest on delayed payment of LADT 4.41 4.41 (Faridabad) 6. Earth work Hydel Channel (Yamuna Nagar) 5.52 5.38 7. Arbitration case of M/s Harish Chandra (India) (Hydel 125.63 119.07 Y. Nagar) 8 ETO, Cum Assessing Authority Jagadhri 3.41 341 9 Arbitration case of M/s S,B Construction Company 4.79 5.61 Suratgarh Contractor (Jagadhri) 10 Arbitration case of M/s Reliance Infrastructure Ltd., 1813.11 1613.15 Noida(Yamuna Nagar, DCRTPP) *The case has been decided by Arbitrator in favour of HPGCL in FY2017-18. 11. Civil Suit, Adani Enterprises Ltd 19.46 19.46 (RGTPP, Hisar) 12. M/s Philips Engg., Kerala ( RGTPP, Hisar) 12.60 12.60 13. Central Excise Commissioner Rohtak, CESTAT Delhi 5.73 573 (Pan[pat) 14. Central Excise Commissioner Rohtak, CESTAT Delhi 0.24 0.24 (Panipat) 15. Central Excise Commissioner Delhi (Sonipat) 9.42 9.42 16. Special Leave petition of Appeal of state of Haryana 307.35 304.16 and another etc. v/s Indian oil Corporation Ltd. Regarding exemption from LADT.(Panipat) 17. Central Excise Commissioner Delhi (Sonipat) 0.57 0.57 18, Labour Court Cases (Panipat 0 & M) 0.55 0.50 19. Arbitration case of M/s Reliance Infrastructure Ltd., 1772.10 1772.10 Noida(Hisar) 20. Arbitration Case of Rajkishan & Co., Panchkula 6.34 5.38 21. Civil suit, Alstom Power, Panchakuna 6057 60.00 Total 4190.46 3977.25 HARYANA POWER GENERATION CORPORATION LIMITED Corporate Identity Number: U45207HR1997SGCO33517 Notes forming part of the financial statement for the year ended March 31, 2018, Contd... ii) Capital Commitment (to the extent not provided for):- (Rs. in Crores) Sr. No Particulars 31 March, 2018 31r March, 2017 1 PTPS/O&M, Panipat 0.93 2. DCRTPP, Yamuna I Nagar RGTPP, Hisar 10.41 11.97 (including 3.13 crore after (including 3.44 crore after conversion of $ 481029 conversion of $ 530,734 @ @ 65.0441 as on 64.8386 as on 31.03.2017) 31.03.2018) Total 10.41 12.90 21. Sund Debtors: (Rs. in crores Particular Current Year Previous Year Opening balance 365.47 1187.62 Add: Sales 5277.48 4513.39 Add: Other Income/ adustments 7.56 417.92 Total 5650.51 6118.93 Collection 5070.19 5753.46 Closing balance 580.32 365.47 22. During the financial year, the Company has not made any transactions with the related parties in terms of Indian Accounting Standard except remuneration paid to the Managing Director and Whole Time Directors, the detail of which are given below: A. The amount charged to accounts for the remuneration to the Managing Director and the Whole Time Director is as under :- (Rs. in Grores) Particulars 2017-18 2016-17 Short Term Employee Benefits: Basic Pay & Grade pay 0.70 0.62 Dearness Allowance 0.07 0.38 Other Allowances 0.05 0.12 The Managing Director and Whole Time Directors are allowed to use staff car for private journeys up to a ceiling of 400 K.M. per month in terms of office order No. 539/Finance Dated 013 October, 1991 on monthly payment of Rs. 200. 23. Balances with Trade Debtors/Creditors, Financial Assets/Liabilities and Other Current Assets/Liabilities from and to various parties, etc: - Balance confirmation to various parties were issued for confirmation of balance. Since, adverse replies have not been received, balances were considered final. 24. During the year no expenses of personal nature have been charged to Revenue account. 25. Generation of Power: (in Million Units) 2017-18 2016-17 Generating Units Auxiliary Net Units Auxiliary Net Station generated consumption generated consumption 2579.46 251.56 2327.90 2205.92 228.01 1977.91 DCRTPP 3446.12 - 292 1.04 3156.08 3424.21 302.08 3122.13 RGZ 681-2,5 4408.43 305.33 228.59 3576.74 WC176 75 1,41 175.34 252 3 236 Total -817.71 1i0083.80 9645.92 7604 8885.57 HARYANA POWER GENERATION CORPORATION LIMITED Corporate Identity Number: U45207HR1997SGCO33517 Notes forming part of the financial statement for the year ended March 31, 2018, Contd... 26, Coal receipt, Consumption and Stock. Particulars y071 Panipat Yamuna Nagar Hisar Total Inin Imepor Irnlian Impor 1nia Imo Idian Import Opening Stock 529466.898 - 394552.60 C 582068.22 C 1506087.72 Gross Receipt 1351001.620 - 2065811.25 - 2814964.54 - 6231777.41 Less: Transit 37659.680 - (5247.27 - 25785.25 58197.66 LossIGain Net Receipt 1313341.940 - 2071058.52 - 2789179.29 - 6173579.75 Opening Stock 1842808.838 - 2465611.12 - 3371247.51 - 7679667.47 (4)Net recejet __________________ Add: Coal found . - surplus on physical verification Less : 1742051 .980 - 2237527.56 j 3250279.28 - 7229858.82 Consumption Less: Sto ne 4645.2095 - 1530.00 - 2869.64 9044.845 Csing Stck 96111.653 - 226553.56 118098.59___ 440763.80 - Particulars 2016-17 Panipat Yamuna Nagar Hisar Total Indian Imp Indian Imp Indian Impo Indian Imported Coal orte Coal orte Coal rted Coal Coal d d Coal Coal Coa Opening Stock 490228.089 - 262226.20 564416.46 - 1316870.729 Gross Receipt 1487714.070 - 2310158.52 - 2765149.54 - 6563022.13 - Less: Transit 4777.115 - 250.71 33210.73 - 38238.555 - Loss/Gain Net Receipt 1482936.955 - 2309907.81 - 2731938.81 - 6524783.575 - Opening Stock 1973165.024 - 2572134.01 ] 3296355.77 - 7841654.804 (+ Net receipt Less: Coal found - - - 9256.12 - 9256.12 - short on physical verification Less: 1425859.837 - 2172901.41 - 2722283.12 - 6321044.637 - Consumption Less : Stone [ 17838.289 - 4680.00 - 1260.55 - 23778.839 - Closing Stock 529466.898 - 394552.60 - 582068.22 - 1506087.718 - Particulars 2017-18 2016-17 27. FO/RFOILD/ HSD consumed (in KL) (a) PTPS,Panipat 3321.71 2422.87 (b) DCRTPP,Yamuna Nagar 1707.04 2456.17 (c) RGTPP, Hisar 2862.07 2085.63 28. Average calorific value per kg of coal consumed ( in K.Cal/ Kg.) (a) PTPS, Panipat 3801 3828 (b) DCRTPP, Yamuna Nagar 3567 3640 (c) RGTPP, Hisar 3613 3601 Average calorific value per kg of oil consumed (in K.cal/kg) (a) PTPS, Panipat 10489 10664 (b) DCRTPP, Yarnuna Nagar 10436 10204 (c) RGTPP, Hisar 10400 10400 HARYANA POWER GENERATION CORPORATION LIMITED Corporate Identity Number: U45207HRI997SGCO33517 Notes forming part of the financial statement for the year ended March 31, 2018, Contd.. 29. Consumption per unit of generation (i) Specific Coal (in Kg/Kwh) (a) PTPS, Panipat 0.675 0.646 (b) DCRTPP, Yamuna Nagar 0649 0.635 (c) RGTPP, Hisar 0.694 0.715 Overall HPGCL 0.675 0.670 (ii) Specific Oil (in MLIKwh) (a) PTPS, Panipat 1.29 1.10 (b) DCRTPP, Yamuna Nagar 0.50 0.72 (c) RGTPP, Hisar 0.61 0.55 Overall HPGCL 0.74 0.74 (iii) Station Heat Rate (in Kcal/Kwh) (a) PTPS, Panipat 2579 2485 (b) DCRTPP, Yamuna Nagar 2319 2316 (c) RGTPP, Hisar 2514 2581 Overall HPGCL 2467 2462 30. INSTALLED CAPACITY OF POWER PLANTS (A) Plants in Operation since the beginning of the year. 1. THERMAL (i)PTPS, Panipat 920.00 920.00 (ii) FTPS, Faridabad - (iii) DCRTPP, Yamuna Nagar 600.00 600.00 (iv) RGTPP, Hisar 1200.00 1200.00 2. HYDRO (i) WYCY.NAGAR 62.40 6240 3 SOLAR PTPS, Panipat 10.00 10.00 Grand Total : 2792.40 2792.40 31. Plant Load Factor FTPS, Faridabad. - PTPS, Panipat. 32.01% 27.37% DCRTPP, Yamuna Nagar 65,60% 65.15% RGTPP, Hisar 44.53% 36.20% Solar 18.46% 14.29% Hydel 32.40% 37 55% For and on behalf of the Board of Directors Sh.Roita nsal Sh. V.B.B Smt. Sukriti Likhi, IAS Sht nsalSh. .B.Bansal Chief Accounts Officer Director, Generation Managing Director Place: Panchkula Dated:%/og/2018 As per our report of even date attached Sh. B.B. Gupta Sh. arilh K. Gui ti for Dhillon Associates CFO Company Secreta Chartered Accountants Fir Regd. Nor. -ZK aplii{ $kar (Partner)y, MembershipNow 7 Place: Chandgarh Dated:3-a /2018