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POWER GRID CORPORATION OF INDIA LIMITED (A Government of India Enterprise)
~ ~:·~·~"ft. 2, ~-29, ~-122 001, ~) ~: 0124-2571700-719, '$m: 0124-2571762, "Saudamini" Plot No. 2, Sector-29, Gurgaon-122 001, (Haryana) Tel.: 0124-2571700-719, Fax: 0124-2571762, Web.: www.powergridindia.com
CIN : L40101DL1989GOI038121
C/COS/Listing/NSE/
The GM (Listing)
Dt: 29.07.2019
National Stock Exchange of India Ltd., Exchange Plaza, Plot No.C/1, G Block, Sandra Kurla Complex, Sandra (East), Mumbai.
Ref: Scrip ID: POWERGRID; Scrip Code: 532898; ISIN: INE752E01010
Dear Sir,
Sub: Notice of 30th Annual General Meeting
Please find enclosed the Notice of 301h Annual General Meeting of Power
Grid Corporation of India Limited scheduled to be held on Tuesday, the 2ih August, 2019 at 11.00 a.m. at "Manekshaw Centre, Parade Road, Delhi Cantt., New Delhi -110 010" along with Annual Report for the Financial Year 2018-19.
This is being sent in terms of Regulations 29, 30 and 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Thanking You,
Encl: a/a
Yours faithfully,
.. ()
DivY, Ta)~ Chief General Manager & Company ecretary -
Compliance Officer
~ <lmifc;ro: <fr- g ~ ~tc:"l~'l"ll'iC'I ~- Cficq1R<11 mm, ~ ~-110016 ~: 011-26560112, 26560121, 26564812, 26564892,, $m: 011-26601081 Regd. Office: B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi-110016 Tel.: 011-26560112, 26560121, 26564812, 26564892, Fax: 011-26601081 Web.: www.powergridindia.com
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Power Grid Corporation of India Limited(A Government of India Enterprise)
CIN: L40101DL1989GOI038121Regd. Office : B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi- 110 016.
Phone No.: 011-26560112, Fax: 011-26601081Corp. Off.: “Saudamini”, Plot No. 2, Sector-29, Gurgaon-122 001 (Haryana)
Phone No.: 0124-2822000, 2823000, Fax: 0124-2571762Website: www.powergridindia.com, Email ID: investors@powergrid.co.in
NOTICENOTICE is hereby given that the 30th Annual General Meeting of the Members of Power Grid Corporation of India Limited will be held on Tuesday, the 27th August, 2019 at 11.00 a.m. at ‘Manekshaw Centre’, Parade Road, Delhi Cantt., New Delhi - 110 010 to transact the following business:ORDINARY BUSINESS:1. To receive, consider and adopt the Audited Financial Statements including Consolidated Financial Statements of the Company for the
Financial Year ended 31st March, 2019, together with the Board’s Report, the Auditor’s Report thereon and comments of the Comptroller and Auditor General of India.
2. TonotethepaymentofinterimdividendanddeclarefinaldividendfortheFinancialYear2018-19.3. ToappointaDirector inplaceofShriRaviP.Singh(DIN05240974),whoretiresbyrotationandbeingeligible,offershimself for re-
appointment. 4. ToauthorizetheBoardofDirectorsoftheCompanytofixtheremunerationoftheStatutoryAuditorsfortheFinancialYear2019-20.SPECIAL BUSINESS:5. To appoint Shri Rajeev Kumar Chauhan (DIN 02018931) as a Director liable to retire by rotation. Toconsiderandifthoughtfit,topasswithorwithoutmodification,thefollowingresolutionasanORDINARYRESOLUTION: “RESOLVED THAT pursuant to the provisions of Section 149, 152 and any other applicable provisions of the Companies Act, 2013 and the
Rulesmadethereunder,ShriRajeevKumarChauhan(DIN02018931),whowasappointedasDirector(Projects),bythePresidentofIndiavideMinistryofPowerOfficeOrderNo.25-11/9/2017-PGdated23rdAugust,2018andappointedbytheBoardofDirectorsasanAdditionalDirector w.e.f. 23rdAugust,2018andsubsequentlyappointedagainbytheBoardasanAdditionalDirectoron18thSeptember,2018afterconclusion of 29thAnnualGeneralMeetingheldon18thSeptember,2018andholdsofficeuptothedateofensuingAnnualGeneralMeetingunder Section 161 of the Companies Act, 2013 and in respect of whom the Company has received a notice in writing under Section 160 of the Companies Act, 2013, be and is hereby appointed as Director (Projects), liable to retire by rotation.”
6. To approve the reappointment of Shri Jagdish Ishwarbhai Patel (DIN: 02291361) as an Independent Director. Toconsiderandifthoughtfit,topasswithorwithoutmodification,thefollowingresolutionasaSPECIALRESOLUTION: “RESOLVED THAT pursuant to the provisions of Sections 149, 150, 152 and any other applicable provisions of the Companies Act, 2013
and the Rules made thereunder, Shri Jagdish Ishwarbhai Patel (DIN 02291361) who was appointed as an Independent Director of the Companywitheffectfrom17th November, 2015 for a period of three years i.e. upto 16thNovember,2018andwhohadbeenreappointedbyGovernment of India vide Order dt. 22ndNovember,2018forfurtherperiodofoneyearstartingfrom17thNovember,2018andsubsequentlyappointedasanAdditionalDirector-IndependentDirectorbytheBoardofDirectorswitheffectfrom17thNovember,2018andholdsofficeuptothedateofensuingAnnualGeneralMeetingunderSection161oftheCompaniesAct,2013beandisherebyappointedasIndependentDirectoroftheCompanytoholdofficeforanothertermofoneyearwitheffectfrom17thNovember,2018,notliabletoretireby rotation.”
7. To approve the appointment of Shri M. N. Venkatesan (DIN: 02126022) as an Independent Director. Toconsiderandifthoughtfit,topasswithorwithoutmodification,thefollowingresolutionasanORDINARYRESOLUTION: “RESOLVED THAT pursuant to the provisions of Sections 149, 150, 152 and any other applicable provisions of the Companies Act, 2013
and the Rules made thereunder, Shri M. N. Venkatesan (DIN 02126022) who was appointed as an Independent Director by the President ofIndiavideMinistryofPowerOfficeOrderNo.20/6/2017-Coord.dated11thJuly,2019andalsoappointedasanAdditionalDirector-IndependentDirectorbytheBoardofDirectorswitheffectfrom11thJuly,2019andholdsofficeuptothedateofensuingAnnualGeneralMeetingunderSection161oftheCompaniesAct,2013beandisherebyappointedasIndependentDirectoroftheCompanywitheffectfrom 11th July, 2019 for a period of three years, not liable to retire by rotation.”
8. Ratification of remuneration of the Cost Auditors for the Financial Year 2019-20. Toconsiderandifthoughtfit,topasswithorwithoutmodification,thefollowingresolutionasanORDINARYRESOLUTION: “RESOLVEDTHATpursuant toSection148andanyotherapplicableprovisionsof theCompaniesAct,2013readwith theCompanies
(AuditandAuditors)Rules,2014,theremunerationofM/s.ChandraWadhwa&Co.,CostAccountantsandM/s.R.M.Bansal&Co.,Cost
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Regd. Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi-110016.(CIN:L40101DL1989GOI038121
Date: 19th July, 2019
Accountants as the joint Cost Auditors of the Company (for Transmission and Telecom business) as appointed by the Board of Directors fortheFinancialYear2019-20ataremunerationof₹2,50,000/-(RupeesTwoLakhFiftyThousandonly)tobesharedequallybyboththefirms;Taxesasapplicabletobepaidextra,travellingandoutofpocketexpensestobereimbursedasperpolicyoftheCompanyandanadditional remuneration of `12500plusTaxesasapplicabletobepaidtoM/s.ChandraWadhwa&Co.,CostAccountants,theLeadCostAuditorforconsolidationandfacilitationforfilingofConsolidatedCostAuditReportsfortheFinancialYear2019-20oftheCompanyasawhole,beandareherebyratifiedandconfirmed.”
9. To raise funds up to ₹10,000 Crore, from domestic market through issue of secured / unsecured, non-convertible, non-cumulative/cumulative, redeemable, taxable / tax-free Debentures/Bonds under Private Placement during the Financial Year 2020-21 in upto twenty tranches/offers.
Toconsiderandifthoughtfit,topasswithorwithoutmodification,thefollowingresolutionasaSPECIALRESOLUTION: (i) “RESOLVED THAT pursuant to Sections 23(1)(b), 42 and 71 of Companies Act, 2013 read with Rule 14(2) of Companies (Prospectus
and Allotment of Securities) Rules, 2014 and other applicable provisions, if any, of the Companies Act, 2013 as amended, Securities andExchangeBoardofIndia(SEBI)RulesandRegulationsincludingSEBI(IssueandListingofDebtSecurities)Regulations,2008,as amended, and provisions of any other applicable law and the Memorandum and Articles of Association of the Company, approval beandisherebygrantedtoraiseupto₹10,000CroreindomesticmarketduringtheFinancialYear2020-21forfinancingofcapitalexpenditure,providingInterCorporateLoan(s)towhollyownedsubsidiaries,otherpurposesasmaybeapprovedbytheBoardofDirectors/CommitteeofDirectorsforBondsandforgeneralcorporatepurposes,inoneormoretranchesbutnotexceedingtwentytranches/offersthroughissueofsecured/unsecured,non-convertible,cumulative/non-cumulative,redeemable,taxable/tax-freedebentures (“Bonds”) under Private Placement.
(ii) RESOLVEDFURTHERTHATthattheBoardofDirectors/CommitteeofDirectorsforBonds/suchofficial(s)asmaybeauthorizedbyBoardofDirectors/CommitteeofDirectorsforBonds,beandareherebyauthorizedanditshallalwaysbedeemedtohavebeensoauthorizedtofinalizethedetailedtermsandconditionsofeachissue/trancheofBonds,IssueprogrammeofBonds,deposit/payfees,executeanddeliver/filesuchofferletter(s),document(s),deed(s)andwriting(s),etc.asmayberequiredandtodoallsuchotheracts,deedsandthingsasmaybenecessaryandincidentalandconsequentialforraisingfundsupto₹10,000CroreduringtheFinancialYear2020-21fromdomesticsourcesthroughPrivatePlacementofsecured/unsecured,non-convertible,cumulative/non-cumulative,redeemable,taxable/tax-freeBondsinoneormoretranchesbutnotexceedingtwentytranches/offers.
(iii) RESOLVEDFURTHERTHATtheDirector(Finance)andCompanySecretarybeandisherebyseverallyauthorizedtocarryoutminormodifications,ifany,andtodoallsuchacts,deedsandthingsasmaybenecessary,proper,expedientorincidentalorconsequentialforthepurposeofgivingeffecttotheaforesaidresolution.”
By order of the Board of Directors
(Divya Tandon) ChiefGeneralManager&
Company Secretary
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NOTES:1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE
INSTEAD OF HIMSELF/HERSELF AND THE PROXY NEED NOT BE A MEMBER OF THE COMPANY. Proxies,inordertobeeffectivemustbelodgedwiththeCompanynotlessthan48hoursbeforethecommencementoftheAnnualGeneral
Meeting, i.e. latest by 11.00 a.m. on Sunday, 25thAugust,2019.Blankproxyformisenclosed. Apersoncanactasaproxyonbehalfofmembersnotexceedingfiftyandholdingintheaggregatenotmorethantenpercentofthetotalshare
capital of the Company carrying voting rights. A member holding more than ten percent of the total share capital of the Company carrying votingrightsmayappointasinglepersonasproxyandsuchpersoncannotactasaproxyforanyotherpersonorshareholder.
2. AsrequiredbyRegulation36oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,therelevantdetailsofShriRaviP.Singh(DIN:05240974),Director(Personnel),retiringbyrotationandseekingre-appointmentunderaforesaidItemNo.3;ShriRajeevKumarChauhan(DIN:02018931),AdditionalDirectorseekingappointmentunderaforesaidItemNo.5;ShriJagdishIshwarbhaiPatel(DIN:02291361) and Shri M. N. Venkatesan (DIN: 02126022) seeking appointment as Independent Directors under aforesaid Item No. 6 and 7, respectively,inaccordancewithapplicableprovisionsoftheArticlesofAssociationoftheCompanyareannexed.
3. None of the Directors of the Company is in any way related to each other.4. A Statement pursuant to Section 102(1) of the Companies Act, 2013, relating to the Special Business to be transacted at the Meeting is
annexedhereto.5. Membersarerequestedto:- (i) note that copies of Annual Report will not be distributed at the Annual General Meeting. (ii) bring their copies of Annual Report, Notice and Attendance Slip duly completed and signed at the meeting. (iii) deliver duly completed and signed Attendance Slip at the entrance of the venue of the meeting and obtain entry slips, as entry to the
Hall will be strictly on the basis of the entry slip available at the counter at the venue of the Annual general meeting. Photocopies of Attendance Slip will not be entertained for issuing entry slip for attending Annual General Meeting.
(iv) quotetheirFolio/ClientID&DPIDNos.inallcorrespondence. (v) note that due to strict security reasons mobile phones, brief cases, eatables and other belongings will not be allowed inside the Auditorium. (vi) notethatnogifts/couponswillbedistributedattheAnnualGeneralMeeting.6. CorporateMembersarerequestedtosendadulycertifiedcopyoftheBoardResolution/PowerofAttorneyauthorizingtheirrepresentative
toattendandvoteontheirbehalfattheAnnualGeneralMeeting.Alternatively,suchanauthoritydulycertifiedshouldbebroughtbytherepresentative attending on behalf of the corporate body, at the meeting.
7. The Register of Members and Share Transfer Books of the Company will remain closed from 21st August, 2019 to 27th August, 2019 (both days inclusive).
8. TheBoardofdirectors,intheirmeetingheldon7thMarch,2019,haddeclaredanInterimDividendof₹5.83pershare(i.e.@58.30%)onthepaid-upequitysharecapitaloftheCompanywhichwaspaidon22nd March, 2019. Members who have not received or not encashed their Dividend warrants may approach Karvy Fintech Private Limited, Registrar and Share Transfer Agent of the Company for obtaining duplicate warrantorrevalidatingthewarrant,asthecasebe.TheBoardhadfurtherrecommendedaFinalDividendof₹2.50pershare(i.e.@25%)onthepaid-upequitysharecapitaloftheCompanyinitsmeetingheldon29th May, 2019. The Dividend, if declared at the Annual General Meeting will be paid on 4th September, 2019 to those Members, whose names appear on the Register of Members of the Company as on 27th August, 2019 in respect of physical shares. However, in respect of shares held in dematerialized form, the Dividend will be payable to those persons whosenamesappearasbeneficialownersasattheclosureofthebusinesshourson20th August, 2019 as per details to be furnished by the depositories.
9. PursuanttoprovisionsofCompaniesAct,2013,unclaimedfinaldividendfortheFinancialYear2010-11andunclaimedinterimdividendfortheFinancialYear2011-12havebeentransferredtotheInvestorEducationandProtectionFund(IEPF)establishedbyCentralGovernmenton20thNovember,2018and9th April, 2019, respectively. Pursuant to Provisions of IEPF Rules, the Company has uploaded the details of unpaid andunclaimedamountslyingwiththeCompanyason18thSeptember,2018(thedateoflastAnnualGeneralmeeting)onthewebsiteoftheCompany(www.powergridindia.com)andalsofiledwiththeMinistryofCorporateAffairs.
10. UnclaimedfinaldividendfortheFinancialYear2011-12andunclaimedinterimdividendfortheFinancialYear2012-13willbeduefortransferto the Investor Education and Protection Fund in October, 2019 and March, 2020, respectively, pursuant to the provisions of Section 124 of the Companies Act, 2013.
11. AttentionofthemembersisdrawntotheprovisionsofSection124(6)oftheAct,whichrequireacompanytotransferinthenameofIEPFAuthority all shares in respect of which dividend has not been paid or claimed for 7 ( seven) consecutive years or more. In accordance with the aforesaid provision of the Act read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended, the Company has already initiated action for transfer of all shares in respect of which dividend has not been claimed or paid forsevenconsecutiveyears.Membersareadvisedtovisittheweb-link:http://www.powergridindia.com/investorrelation/investorservicestoascertain details of shares liable for transfer in the name of IEPF Authority.
12. Members are advised to submit their Electronic Clearing System (ECS) mandates to enable the Company to make remittance by means of ECS. Those holding shares in dematerialized form may send the ECS Mandate Form directly to their Depository Participants (DP). Those
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holdingsharesinphysicalformmaysendtheECSMandateFormtoKarvyFintechPrivateLimited,theRegistrar&ShareTransferAgentoftheCompany.ThosewhohavealreadyfurnishedtheECSMandateFormtotheCompany/DepositoryParticipant/Registrar&ShareTransferAgentwith complete details, need not send them again.
The shareholders who hold shares in Physical form and who do not wish to opt for ECS facility may please mail their bankers’ name, branch addressandaccountnumbertoKarvyFintechPrivateLimited,Registrar&ShareTransferAgentoftheCompanytoenablethemtoprintthesedetails on the dividend warrants.
13. Membersholdingshares inmultiple folios inphysicalmodearerequestedtoapply forconsolidationofshares to theCompanyor to theRegistrar&ShareTransferAgentalongwithrelevantShareCertificates.
14. PursuanttoSection139(5)oftheCompaniesAct,2013theauditorsoftheGovernmentcompanyareappointedbytheComptroller&AuditorGeneralofIndia(C&AG)andintermsofSection142oftheCompaniesAct,2013,theremunerationhastobefixedbytheCompanyintheAnnual General Meeting or in such manner as the company in General Meeting may determine. The Members of the Company, in 29th Annual GeneralMeetingheldon18thSeptember,2018,hadauthorizedtheBoardofDirectorstofixtheremunerationofStatutoryAuditorsfortheFinancialYear2018-19.Accordingly,theBoardofDirectorshasfixedauditfeeof₹1.09CroretowardsauditfeefortheStatutoryAuditorsfortheFinancialYear2018-19inadditiontoreimbursementofactualtravellingandout-of-pocketexpensesforvisittoaccountingunits.TheC&AGisyettoappointStatutoryAuditorsoftheCompanyfortheFinancialYear2019-20.TheMembersmayauthorizetheBoardtofixanappropriateremunerationofStatutoryAuditorsasmaybedeemedfitbytheBoardfortheFinancialYear2019-20.
15. AllthedocumentsreferredtointhisNoticeandtheRegistersreferredtoinSection170andinSection189oftheCompaniesAct,2013areopenforinspectionattheRegisteredOfficeoftheCompanyonallworkingdays(excludingSaturdayandSunday),between11.00AMto1.00PM upto Monday, the 26th August, 2019 and at the venue of the meeting.
16. Members holding shares in physical form and desirous of making a nomination in respect of their shareholding in the Company, as permitted underSection72oftheCompaniesAct,2013,arerequestedtosubmittotheRegistrar&ShareTransferAgentsoftheCompanytheprescribedForm(FormNo.SH-13)oftheCompanies(ShareCapitalandDebentures)Rules,2014.Incaseofsharesheldindematerializedform,thenomination has to be lodged with the respective Depository Participant.
17. AttentionofthemembersisdrawntoSecuritiesandExchangeBoardofIndia(SEBI)CircularSEBI/HO/MIRSD/DOP1/CIR/P/2018/73dated20.04.2018,whichrequireshareholdersholdingshares inphysicalformandwhosefolio(s)donothavecompletedetailsrelatingtotheirPANandbankaccount,orwherethereisanychangeinthebankaccountdetailsprovidedearlier,tocompulsorilyfurnishthedetailstoRTA/Companyforregistration/updation.
18. MembersareinformedthatpursuanttoSEBI(LODR)(FourthAmendment)Regulations,2018dated8thJune,2018,requestsforeffectingtransfer of securities in physical form shall not be processed by the Company unless the securities are held in dematerialized form with a Depository.Hence,membersarerequestedtodematerializetheirphysicalholding.
19. AnnualListingfeefortheyear2019-20hasbeenpaidtotheStockExchangeswhereinsharesoftheCompanyarelisted.
20. Membersarerequestedtosendallcorrespondenceconcerningregistrationoftransfers,transmissions,sub-division,consolidationofsharesorany other shares related matter and bank account to Company’s Registrar and Share Transfer Agent.
21. Membersarerequestedtonotifyimmediatelyanychangeintheiraddress:
(i) to their Depository Participants (DP) in respect of shares held in dematerialized form, and
(ii) totheCompanyatitsRegisteredOfficeoritsRegistrar&ShareTransferAgent,KarvyFintechPrivateLimitedinrespectoftheirphysicalshares,ifany,quotingtheirFolioNumber.
22. MembersdesirousofgettinganyinformationonanyitemsofbusinessofthismeetingarerequestedtoaddresstheirqueriestotheCompanySecretaryatleasttendayspriortothedateofthemeeting,sothattheinformationrequiredcanbemadereadilyavailableatthemeeting.
23. IntermsofSection108oftheCompaniesAct,2013readwithRule20oftheCompanies(ManagementandAdministration)Rules,2014andincompliancewiththeprovisionsofRegulation44(3)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,theCompanyisofferingremotee-votingfacilitytoalltheShareholdersoftheCompanyinrespectofitemstobetransactedatthisAnnualGeneralMeeting and in this regard, the Company has engaged the services of Karvy Fintech Private Limited (KARVY) to provide the facility of electronic voting(‘remotee-voting’).
24. Instructionsandotherinformationrelatingtoremotee-votingareasunder:
A. Theremotee-votingfacilitywillbeavailableduringthefollowingvotingperiod:
• Commencementofremotee-voting:From9.00a.m.(IST)on24th August, 2019.
• Endofremotee-voting:Upto5:00p.m.(IST)on26th August, 2019.
B. IncaseaMemberreceivesanemailfromKarvy[forMemberswhoseemailIDsareregisteredwiththeCompany/DepositoryParticipant(s)]:
(i) LaunchinternetbrowserbytypingtheURL:https://evoting.karvy.com
(ii) Enterthelogincredentials(i.e.UserIDandpasswordmentionedatAttendanceSlip).YourFolioNo./DPID-ClientIDwillbeyourUserID.However,ifyouarealreadyregisteredwithKarvyfore-voting,youcanuseyourexistingUserIDandpasswordforcastingyour vote.
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User-ID ForMembersholdingsharesinDematForm:-a)ForNSDL:8CharacterDPIDfollowedby8DigitsClientIDb)ForCDSL:16digitsbeneficiaryIDForMembersholdingsharesinPhysicalForm:-Event no. followed by Folio Number registered with the company.
Password YourUniquepasswordisprintedontheAttendanceSlip.Captcha Enter theVerification code (pleaseenter thealphabetsandnumbers in theexactwayas theyaredisplayed for
security reasons). (iii) After entering these details appropriately, click on “LOGIN”. (iv) YouwillnowreachpasswordchangeMenuwhereinyouarerequiredtomandatorilychangeyourpassword.Thenewpasswordshall
compriseminimum8characterswithatleastoneuppercase(A-Z),onelowercase(a-z),onenumeric(0-9)andaspecialcharacter(@,#,$,etc.).Thesystemwillpromptyoutochangeyourpasswordandupdateyourcontactdetailslikemobilenumber,emailID,etc.onfirst login.Youmayalsoenterasecretquestionandanswerofyourchoicetoretrieveyourpassword incaseyouforget it.It isstrongly recommended that you do not share your password with any other person and that you take utmost care to keep your password confidential.
(v) You need to login again with the new credentials. (vi) Onsuccessfullogin,thesystemwillpromptyoutoselecttheE-VotingEventNumberforPowerGridCorporationofIndiaLimited. (vii)Onthevotingpageenterthenumberofshares(whichrepresentsthenumberofvotes)asonthecut-offdateunder“FOR/AGAINST”
oralternatively,youmaypartiallyenteranynumberin“FOR”andpartiallyin“AGAINST”butthetotalnumberin“FOR/AGAINST”takentogethershouldnotexceedyourtotalshareholding.Youmayalsochoosetheoption“ABSTAIN”andthesharesheldwillnotbecountedunder either head.
(viii)Membersholdingmultiplefolios/demataccountsshallchoosethevotingprocessseparatelyforeachofthefolios/demataccounts. (ix) VotinghastobedoneforeachitemoftheNoticeseparately.Incaseyoudonotdesiretocastyourvoteonanyspecificitemitwillbe
treated as abstained. (x) Youmaythencastyourvotebyselectinganappropriateoptionandclickon“Submit”. (xi) Aconfirmationboxwillbedisplayed.Click“OK”toconfirmelse“CANCEL”tomodify.Onceyouconfirm,youwillnotbeallowedtomodify
your vote. During the voting period, Members can login any number of times till they have voted on the Resolution(s). (xii) Corporate/ InstitutionalMembers (i.e.other thanIndividuals,HUF,NRI,etc.)arealso required tosendscannedcertified truecopy
(PDF Format) of the Board Resolution / Authority Letter, etc., togetherwith attested specimen signature(s) of the duly authorizedrepresentative(s),totheScrutinizerate-mailID:contact@cssanjaygrover.in.Theymayalsouploadthesameinthee-votingmoduleintheirlogin.Thescannedimageoftheabovementioneddocumentsshouldbeinthenamingformat“CorporateName_EVEN”(E-VotingEvent Number).
C. (I) In case a Member receives physical copy of the Annual General Meeting Notice by Post [for Members whose email IDs are not registered withtheCompany/DepositoryParticipant(s)]:
(i) Use‘userID’and‘initialpassword’asprovidedatAttendanceSlip. (ii) PleasefollowallstepsfromSr.No.(i)to(xii)asmentionedin(B)above,tocastyourvote. (II) Theremotee-votingperiodcommenceson24th August, 2019 (09.00 AM IST) and ends on 26th August, 2019 (05.00 PM. IST). The remote
e-votingmoduleshallbedisabledbyM/sKarvyFintechPrivateLimitedforvotingthereafterandthefacilitywillbeblockedforthwith.Duringremotee-votingperiod,shareholdersofthecompanyholdingshareseitherinphysicalformorindematerializedform,asonthecut-offdatei.e.20th August, 2019 may cast their vote electronically. Once the vote on a resolution is cast by a Member, the Member shall notbeallowedtochangeitsubsequently.Further,theMemberswhohavecasttheirvoteelectronicallyshallnotbeallowedtovoteagainat the Meeting.
(III)AnyPersonwhohasacquiredsharesandbecomesMemberoftheCompanyafterthedispatchoftheNoticeoftheAGMbutbeforethecut-offdateof20thAugust,2019,mayobtaintheiruserIDandpasswordforremotee-votingfromCompany’sRegistrar&TransferAgents,M/sKarvyFintechPrivateLimited,KarvySeleniumTowerB,Plot31-32,GachibowliFinancialDistrict,Nanakramguda,Hyderabad–500032,PhoneNo:04067162222,E-mailid:einward.ris@karvy.com,TollFreeNo.:18003454001andFax:04023420814andcanalsorequestforthephysicalcopyoftheAnnualReport.
(IV)Memberswhohavecasttheirvotethroughremotee-votingfacilitypriortothemeetingmayalsoattendthemeetingbutshallnotbeentitled to cast their vote again. At the venue of the meeting, members who have not cast their vote through remote voting may cast their vote through Instapoll (Tab Voting).
(V) Persons whose names are recorded in the Register of Members maintained by Registrar and Share Transfer Agent as on cutoff date i.e. 20th August, 2019 shall only avail the facility of remote e-voting or voting through Instapoll (Tab Voting) at venue of the meeting.
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(VI) Incaseofanyquery,membersarerequestedtocontact: Name : ShriSVRaju/ShriA.MohanKumar Designation : DeputyGeneralManager/Manager E-mailid : einward.ris@karvy.com Address : M/sKarvyFintechPrivateLimited,KarvySelenium TowerB,Plot31-32,GachibowliFinancialDistrict,Nanakramguda,Hyderabad–500032. Contact details : Phone No. 040 6716 2222 FaxNo. : 04023420814 TollFreeNo. : 18003454001 (VII)Incaseofanyquerypertainingtoe-voting,pleasevisitHelp&FAQ’ssectionavailableatKarvy’swebsitehttps://evoting.karvy.com. (VIII)ThevotingrightsoftheMembersshallbeinproportiontothepaid-upvalueoftheirsharesintheequitycapitaloftheCompanyason
thecut-offdate(i.e.therecorddate),beingTuesday,20th August, 2019. (IX)TheBoardofDirectorshaveappointedShriSanjayGrover,ManagingPartner,M/sSanjayGrover&Associates,CompanySecretaries,as
aScrutinizer,forconductofthee-votingprocessinafairandtransparentmanner. (X) TheScrutinizershall,immediatelyaftertheconclusionofvotingattheAnnualGeneralMeeting,firstcountthevotescastatthemeeting,
thereafter,unblockthevotescastthroughremotee-votinginthepresenceofatleasttwo(2)witnessesnotintheemploymentoftheCompany and will make, not later than forty eight hours of conclusion of the meeting, a consolidated Scrutinizer’s Report of the votes cast in favour or against, if any, to the Chairman or a person authorized by him in writing who shall countersign the same. Chairman or a person authorized by him in writing shall declare the result of the voting forthwith.
(XI) The Results on resolutions shall be declared after the Annual General Meeting of the Company and the resolutions will be deemed to be passedontheAnnualGeneralMeetingdatesubjecttoreceiptoftherequisitenumberofvotesinfavouroftheResolutions.
(XII) The Results declared along with the Scrutinizer’s Report(s) will be available on the website of the Company (www.powergridindia.com) andonKarvy’swebsite(https://evoting.karvy.com)immediatelyaftertheresultisdeclaredbytheChairmanorapersonauthorizedbyhiminwritingandcommunicationofthesametoNationalStockExchangeofIndiaLimitedandBSELimited.
25. Your Company is pleased to provide the facility of live webcast of proceedings of Annual General Meeting. Members who are entitled to participateintheAnnualGeneralMeetingcanviewtheproceedingsofAnnualGeneralMeetingbyloggingonthee-votingwebsiteofKarvyathttps://evoting.karvy.com/usingtheirsecurelogincredentials.
26. Important Communication to Members:- As per the provisions of Sections 101 and 136 of the Companies Act, 2013 read with the Companies (Management and Administration) Rules,
2014andRegulation36oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,theserviceofnotice/documentsincludingAnnualReportcanbesentbye-mailtoitsmembers.Memberswhohavenotregisteredtheire-mailaddresses,sofar,arerequestedtoregistertheire-mailaddresses,inrespectofdematerializedshareswiththeDepositorythroughtheirconcernedDepositoryParticipants.MemberswhoholdsharesinphysicalformarerequestedtofilltheE-CommunicationMandateFormandhandoverthesamealongwithAttendanceSlipattheRegistrationCounterofvenueofAnnualGeneralMeetingforregistrationofEmailaddressforreceivingnotice/documentsincluding Annual Report in future.
7
Annexure to NoticeEXPLANATORY STATEMENT
ITEM NO. 5Appointment of Shri Rajeev Kumar Chauhan (DIN 02018931) as a Director liable to retire by rotation.ShriRajeevKumarChauhanwasappointedasDirector(Projects)oftheCompanybythePresidentofIndiavideMinistryofPowerOrderNo.25-11/9/2017-PGdated23rdAugust,2018andassumedchargew.e.f.23rdAugust,2018.IntermsofArticle31AoftheArticlesofAssociation,theBoard of Directors are empowered to appoint the directors appointed by the President of India as an Additional Director under provisions of the Companies Act, 2013 (the Act) and they will be appointed by the Shareholders at the succeeding Annual General Meeting (AGM). Accordingly, the Board, vide resolution by circulation dated 23rdAugust,2018appointedShriRajeevKumarChauhanasanAdditionalDirectortillthedateoflastAGMandsubsequentlyintheBoardmeetingheldon18thSeptember,2018appointedShriRajeevKumarChauhanagainasanAdditionalDirector.ShriRajeevKumarChauhanholdsofficeuptothedateoftheensuingAGM.TheCompanyhasreceivedanoticeinwritingunderSection160oftheActproposingtheappointmentofShriRajeevKumarChauhanasaDirectorontheBoardofPOWERGRID.The above appointment of Shri Rajeev Kumar Chauhan as Director (Projects) on the Board of the Company, being liable to retire by rotation intermsofSection152oftheActreadwithArticle31AoftheArticlesofAssociationoftheCompanyrequiresapprovaloftheMembersintheGeneral Meeting.ShriRajeevKumarChauhanholds1shareinPOWERGRID.NoneoftheDirectorsandKeyManagerialPersonneloftheCompanyortheirrelativesareconcernedorinterestedintheresolutionfinanciallyorotherwiseexcepttotheextentthatheorsheisaDirectorand/orShareholderoftheCompany.The Board of Directors of your Company recommends passing of the resolution as set out at Item No. 5 as an Ordinary Resolution.BriefresumeofShriRajeevKumarChauhanisannexed.ITEM NO. 6Reappointment of Shri Jagdish Ishwarbhai Patel (DIN: 02291361) as an Independent DirectorShriJagdishIshwarbhaiPatel(DIN:02291361)wasappointedasanIndependentDirectorofthecompanywitheffectfrom17th November, 2015 for a period of three years which was completed on 16thNovember,2018.GovernmentofIndiavideOrderdt.22ndNovember,2018hadreappointed Shri Jagdish Ishwarbhai Patel for further period of one year w.e.f. from 17thNovember,2018.IntermsofArticle31AoftheArticlesof Association, the Board of Directors are empowered to appoint the directors appointed by the President of India as an Additional Director under provisions of the Companies Act, 2013 (the Act) and they will be appointed by the Shareholders at the Annual General Meeting (AGM) after their appointment. Accordingly, the Board vide resolution by circulation dated 22ndNovember,2018appointedShriJagdishIshwarbhaiPatelasanAdditionalDirector–IndependentDirectorw.e.f.17thNovember,2018foraperiodofoneyear.ShriJagdishIshwarbhaiPatelholdsofficeuptothe date of the ensuing AGM. Further,intheopinionoftheCentralGovernment,MinistryofPowerShriJagdishIshwarbhaiPatelfulfillstheconditionsspecifiedintheActandthe Rules made thereunder and that Shri Jagdish Ishwarbhai Patel is independent of the Management. It is proposed to reappoint him as an Independent Director for a period of one year w.e.f. 17thNovember,2018.Reappointment of Shri Jagdish Ishwarbhai Patel as an Independent Director on the Board of the Company, not being liable to retire by rotation intermsofSection152readwithSection149oftheCompaniesAct,2013,requiresapprovaloftheMembersintheGeneralMeeting.ShriJagdishIshwarbhaiPatelholdsNILsharesinPOWERGRID.NoneoftheDirectorsandKeyManagerialPersonneloftheCompanyortheirrelativesareconcernedorinterestedintheresolutionexcepttotheextentthatheorsheisaDirectorand/orShareholderoftheCompany.The Board of Directors of your Company recommends the passing of the resolution as set out at Item No. 6 as a Special Resolution.BriefresumeofShriJagdishIshwarbhaiPatelisannexed.ITEM NO. 7Appointment of Shri M. N. Venkatesan (DIN: 02126022) as an Independent DirectorShri M. N. Venkatesan (DIN 02126022) was appointed as an Independent Director of the Company by the President of India vide Ministry of PowerOfficeOrderNo.20/6/2017-Coord.dated11thJuly,2019foratermnotexceeding3years.IntermsofArticle31AoftheArticlesofAssociation, the Board of Directors are empowered to appoint the directors appointed by the President of India as an Additional Director under provisions of the Companies Act, 2013 (the Act) and they will be appointed by the Shareholders at the Annual General Meeting (AGM) after their appointment. Accordingly, the Board vide resolution by circulation dated 11th July, 2019 appointed Shri M. N. Venkatesan as an Additional Director–IndependentDirector.ShriM.N.VenkatesanholdsofficeuptothedateoftheensuingAGM.Further,intheopinionoftheCentralGovernment,MinistryofPowerShriM.N.VenkatesanfulfillstheconditionsspecifiedintheActandtheRulesmade thereunder and that Shri M. N. Venkatesan is independent of the Management. It is proposed to appoint him as an Independent Director for a period of three years w.e.f. 11th July, 2019. The above appointment of Shri M. N. Venkatesan as an Independent Director on the Board of the Company, not being liable to retire by rotation intermsofSections149&152oftheAct,requiresapprovaloftheMembersintheGeneralMeeting.ShriM.N.VenkatesanholdsNILsharesinPOWERGRID.
8
NoneoftheDirectorsandKeyManagerialPersonneloftheCompanyortheirrelativesareconcernedorinterestedintheresolutionfinanciallyorotherwiseexcepttotheextentthatheorsheisaDirectorand/orShareholderoftheCompany.The Board of Directors of your Company recommends passing of the resolution as set out at Item No. 7 as an Ordinary Resolution. BriefresumeofShriM.N.Venkatesanisannexed.ITEM NO. 8Ratification of remuneration of the Cost Auditors for the Financial Year 2019-20As per Section 148 (3) of the Companies Act, 2013, the appointment of Cost Auditor shall bemade by the Board of Directors on suchremunerationasmaybedeterminedbytheMembers.UndertheCompanies(AuditandAuditors)Rules,2014,theBoardwhileappointingthecostauditorshastoapprovetheremunerationpayabletothemandtheremunerationsoapprovedbytheBoardhastoberatifiedbythegeneralmeeting.Accordingly,asrecommendedbytheAuditCommittee,theBoardappointed(i)M/sChandraWadhwa&Co.,CostAccountantsandM/sR.M.Bansal&Co.,CostAccountantsasjointCostAuditorsoftheCompanyfortheFY2019-20forafeeof₹2,50,000/-plusapplicabletaxestobesharedequallybyeachAuditor.Theabovefeesisexclusiveoftravellingandoutofpocketexpenses,whichshallbereimbursedasperpolicyoftheCompanyand;(ii)M/s.ChandraWadhwa&Co.,CostAccountants,astheLeadCostAuditorfortheworkofconsolidationandfacilitationforfilingofconsolidatedCostAuditReportoftheCompanyforthefinancialyear2019-20atanadditionalfeeof₹12,500/-(RupeesTwelveThousandFiveHundredonly)excludingtaxesandoutofpocketexpenses.NoneoftheDirectorsandKeyManagerialPersonneloftheCompanyortheirrelativesareconcernedorinterestedintheresolutionfinanciallyorotherwiseexcepttotheextentthatheorsheisaDirectorand/orShareholderoftheCompany.TheBoardofDirectorsofyourCompanyrecommendspassingoftheresolutionassetoutatItemNo.8asanOrdinaryResolution.ITEM NO. 9To raise funds up to ₹10,000 Crore from domestic market through issue of secured / unsecured, non-convertible, non-cumulative/cumulative, redeemable, taxable / tax-free Debentures/Bonds under Private Placement during the Financial year 2020-21 in upto twenty tranches/offers.POWERGRIDBoardofDirectors,intheir367th meeting held on 3rdJuly,2019,approvedraisingofsecured/unsecured,non-convertible,non-cumulative,redeemable,taxable/tax-free,RupeeLinkedBonds/Bondsunderprivateplacementfromdomestic/external/overseassourcesupto₹10,000Crore(Approx)inuptotwentytranchesdependingupontherequirementoffundsduringtheFinancialYear2020-21forfinancingofPOWERGRIDCapitalexpenditurerequirement,providingintercorporateloanstowhollyownedsubsidiaries,otherpurposesasmaybeapprovedbytheboardofDirectors/CommitteeofDirectorsforBondsandforgeneralcorporatepurposes.Anamountof₹10,000Croreto₹15,000CroreisbeingconsideredasexpectedCapitalExpenditure(CAPEX)duringtheFinancialYear2020-21.Inordertohaveadebtequitymixof70:30anamountof₹7,000Crore-₹10,500CroreisestimatedtobemobilizedasdebtandBalance₹3,000Crore-₹4,500CrorefrominternalresourcesduringtheFinancialYear2020-21.Presently,POWERGRIDdomesticBondshavebeenratedathighestcreditrating(AAA)byvariousRatingAgenciesi.e.CRISIL,ICRA&CARE.Theratesofinterestaredeterminedonthemarketconditionsprevailingatthetimeofenteringthemarketforaparticularofferofbondsonprivateplacement(includingoffertoQualifiedInstitutionalBuyer/s).Atpresent,borrowingthroughdomesticbondswasbeingdonebytheCompanyata cost which is comparable to prevailing interest rates applicable to AAA rated corporate bonds. In line with the past practice, the interest yield on the proposed borrowings is also envisaged to be comparable to the interest rates of prevailing interest rates of AAA rated corporate bonds.TheproposedborrowingforFY2020-21willbewithinoverallborrowinglimitsof₹1,80,000crore.NoneoftheDirectorsandKeyManagerialPersonneloftheCompanyortheirrelativesareconcernedorinterestedintheresolutionfinanciallyorotherwiseexcepttotheextentthatheorsheisaDirectorand/orShareholderoftheCompany.The Board of Directors of your Company recommends passing of the resolution as set out at Item No. 9 as a Special Resolution.
The Register of Directors and Key Managerial Personnel and their shareholding, Register of Contracts or Arrangements in which Directors are interestedandallthedocumentsreferredtointhisNoticeandExplanatoryStatementareopenforinspectionbetween11.00a.m.to1.00p.m.onallworkingdaysattheRegisteredOfficei.e.B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016uptoMonday,26th August, 2019 and at the venue of meeting.
By order of the Board of Directors
(Divya Tandon) ChiefGeneralManager&
Company Secretary
Regd. Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi-110016.(CIN:L40101DL1989GOI038121
Date: 19th July, 2019
9
BRIEF RESUME OF THE DIRECTORS SEEKING RE-ELECTION Directors seeking re-election at the 30th AGM:
Director being appointed at the 30th Annual General Meeting
Name Shri Ravi P. SinghDIN 05240974Date of Birth and Age 21January1960/59YearsDate of Appointment 01 April 2012Qualification MechanicalEngineering,NITAllahabad&PGDinHRfromAIMA,NewDelhiExpertiseinspecificfunctionalArea ShriRaviP.Singhhasover37yearsofworkexperience in thepower sector,handlingvarious
multidisciplinary functions like HR, Telecom, Contracts, Materials, Planning, Monitoring and Transmission System Construction/O&M. Before his elevation as Director (Personnel) he wasExecutiveDirector(EasternRegion-II)andExecutiveDirector(HumanResourceManagement&CorporateCommunication)inPOWERGRID.PriortojoiningPOWERGRIDin1991,ShriSinghhasworked for 10 years in NTPC.
Directorship held in otherCompanies(Part-time)
1. Cross Border Power Transmission Company Limited2. North East Transmission Company Limited3. Bihar Grid Company Limited4. Jaypee Powergrid Limited5. Parbati Koldam Transmission Company Limited6. Powerlinks Transmission Limited7. Teestavalley Power Transmission Limited8.TorrentPowerGridLimited
Membership/ChairmanshipofCommittees in other Companies
NIL
No. of Shares held 9016
Name Shri Rajeev Kumar ChauhanDIN 02018931Date of Birth and Age 25thOctober,1960/58YearsDate of Appointment 23rdAugust,2018Qualification Electrical Engineer, IIT RoorkeeExpertiseinspecificfunctionalArea Shri Rajeev Kumar Chauhan is a highly experienced professional in the field of EHV Power
transmissionsystemintheCountry.Hehasdiverseexperienceofmorethan34yearsinEHVAC&DC transmission system. Prior to taking over the charge as Director (Projects), Shri Chauhan was holdingtheChargeofExecutiveDirector(Engineering)inPOWERGRID.
Directorship held in otherCompanies(Part-time)
1. PTC India Limited.2.RINLPOWERGRIDTLTPvt.Limited.3.POWERGRIDVaranasiTransmissionSystemLimited.4.POWERGRIDJawaharpurFirozabadTransmissionLimited.5.POWERGRIDSouthernInterconnectorTransmissionSystemLimited6.POWERGRIDMedinipur–JeeratTransmissionLimited
Membership/ChairmanshipofCommittees in other Companies
NIL
No. of Shares held 1
1.
10
3.
2.
Name Shri Jagdish Ishwarbhai Patel DIN 02291361Date of Birth and Age 15thOctober,1964/54YearsDate of Appointment 17thNovember,2018Qualification B.Sc.,ASTM-UT,MBA(Ind.)ExpertiseinspecificfunctionalArea Mr. Jagdish I Patel has an illustrious career spanning over 38 years in the areas of Energy
Generation, Mining and Space sectors as engineering solution providers and strategic planner over businessauxiliaryunits.HavingbeenDirector(Tech.)atPushpakTrademechLimited,aswellasKIA Infrastructure Development Limited and active member of Gujarat Chamber of Commerce and Industry (GCCI), he has served as a member of several institutions such as District Implementation &IndustrialManagementCommitteeofITI,IndustrialManagementCommitteeofIGTRandhasalsoservedasPresidentaswellasTreasureratLUB-Gujarat.
Directorship held in otherCompanies(Part-time)
1. Pushpak Trademech Limited2. KIA Infrastructure Development Limited
Membership/ChairmanshipofCommittees in other Companies
NIL
No. of Shares held NIL
Name Shri M. N. VenkatesanDIN 02126022Date of Birth and Age 3rdOctober,1955/63YearsDate of Appointment 11th July, 2019Qualification B.Com, FCAExpertiseinspecificfunctionalArea Shri M. N. Venkatesan, B.Com, FCA is a practising Chartered Accountant specialising in Management
and Financial Consultancy. He has wide experience of more than 35 years in the professionincluding as Statutory Central Auditor of Large Public Sector Banks for over 30 years. Presently, Shri Venkatesan is a senior partner of M.R. Narain and Co., Chartered Accountants, Chennai.
Directorship held in otherCompanies(Part-time)
1. Svasti Micro Finance Private Limited2. Focus Credit Management India Private Limited
Membership/ChairmanshipofCommittees in other Companies
Svasti Micro Finance Private Limited : AuditCommittee–ChairmanNominationandRemunerationCommittee-ChairmanFinanceCommittee–Member
No. of Shares held NIL
11
Power Grid Corporation of India Limited(A Government of India Enterprise)CIN:L40101DL1989GOI038121
Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi-110016,PhoneNo.:011-26560112,Fax:011-26601081Corp.Off.:“Saudamini”,PlotNo.2,Sector-29,Gurgaon-122001(Haryana),PhoneNo.:0124-2822000,2823000,Fax:0124-2571762
Website:www.powergridindia.com,EmailID:investors@powergrid.co.in
PROXY FORM
I/We,beingthemember(s)of…………...sharesoftheabovenamedcompany,herebyappoint1. Name of the member (s): Address:E-mailId:Signature:……………...........,orfailinghim2. Name of the member (s): Address:E-mailId:Signature:……………...........,orfailinghim3. Name of the member (s): Address:E-mailId:Signature:……………...........,Asmy/ourproxytoattendandvote(onapoll)forme/usandonmy/ourbehalfatthe30th Annual General Meeting of the company, to be held on Tuesday, the 27th August, 2019 at 11.00 a.m. at ‘Manekshaw Centre’, Parade Road, Delhi Cantt., New Delhi – 110 010 and at any adjournment thereof in respect of such resolutions as are indicated below:
ReSl. No.
Resolutions For Against
Ordinary Business1. To receive, consider and adopt the Audited Financial Statements including Consolidated Financial Statements of
the Company for the Financial Year ended 31st March, 2019, together with the Board’s Report, the Auditor’s Report thereon and comments of the Comptroller and Auditor General of India.
2. TonotethepaymentofinterimdividendanddeclarefinaldividendfortheFinancialYear2018-19.3. To appoint a Director in place of Shri Ravi P. Singh (DIN 05240974), who retires by rotation and being eligible,
offershimselfforre-appointment.4. ToauthorizetheBoardofDirectorsof theCompanytofixtheremunerationoftheStatutoryAuditors forthe
FinancialYear2019-20.Special Business5. ToappointShriRajeevKumarChauhan(DIN02018931)asaDirectorliabletoretirebyrotation.6. To approve the reappointment of Shri Jagdish Ishwarbhai Patel (DIN: 02291361) as an Independent Director.7. To approve the appointment of Shri M. N. Venkatesan (DIN: 02126022) as an Independent Director.8. RatificationofremunerationoftheCostAuditorsfortheFinancialYear2019-20.9. Toraisefundsupto₹10,000Crore,fromdomesticmarketthroughissueofsecured/unsecured,non-convertible,
non-cumulative/cumulative, redeemable, taxable/ tax-freeDebentures/BondsunderPrivatePlacementduringtheFinancialYear2020-21inuptotwentytranches/offers.
Name of the member (s):Registered address:E-mailId:Foliono/ClientId:DP ID:
Signedthis…………..dayof………………..,2019.Signature of shareholderSignatureofProxyholder(s)Note: 1. This form of proxy in order to be effective should be duly completed and deposited at the Registered
Office of the Company, not less than 48 hours before the commencement of the Meeting.2. Fortheresolutions,explanatorystatementsandNotes,pleaserefertotheNoticeof30th Annual General Meeting.3. Pleasecompletealldetailsincludingdetailsofmember(s)intheaboveboxbeforesubmission.
AffixRevenueStamp
""
13
Power Grid Corporation of India LimitedRegd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi-110016,PhoneNo.:011-26560112,Fax:011-26601081
Corp.Off.:“Saudamini”,PlotNo.2,Sector-29,Gurgaon-122001(Haryana),PhoneNo.:0124-2822000,2823000,Fax:0124-2571762Website:www.powergridindia.com,EmailID:investors@powergrid.co.in
ECS MANDATE FORM[APPLICABLEFORSHARESHELDINPHYSICALFORMONLY]
ToKarvy Fintech Private LimitedUnit:PowerGridCorporationofIndiaLimited,KarvySeleniumTowerB,Plot31-32,Gachibowli Financial District, Nanakramguda,Hyderabad–500032.
NameoftheFirst/SoleShareholderFolio No.
PAN / Email informationIncome Tax Permanent Account Number (PAN) (Please attach aphotocopy of PAN Card)Email ID
ECS Mandate Form (for shares held in Physical mode)Bank NameBranchName&AddressBank Account Type (tick) SB Current OthersBank Account Number9 Digit Code Number of the Bank and Branch appearing on the MICR ChequeissuedbytheBank.(Please attach a photo copy of the Cheque)
Iherebydeclarethattheparticularsgivenabovearecorrectandcompleteandalsoexpressmyconcurrencetoreceiveinformationthroughe-mailtowardsdividendpaidbytheCompanyundertheECSmode.
Signature of the 1st Registered Holder/Sole Holder
Power Grid Corporation of India Limited(A Government of India Enterprise)CIN:L40101DL1989GOI038121
Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi-110016,PhoneNo.:011-26560112,Fax:011-26601081Corp.Off.:“Saudamini”,PlotNo.2,Sector-29,Gurgaon-122001(Haryana),PhoneNo.:0124-2822000,2823000,Fax:0124-2571762
Website:www.powergridindia.com,EmailID:investors@powergrid.co.inE-COMMUNICATION REGISTRATION FORM
FolioNo./DPID&ClientID : ……………………………………………………Name of 1stRegisteredHolder : …………………………………………………..NameofJointHolder(s) : …………………………………………………..…………………………………………………….RegisteredAddress : ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………E-mailID(toberegistered) : ………………………………………………………………………………………………………I/weshareholder(s)ofPowerGridCorporationofIndiaLimitedagreetoreceivecommunicationfromtheCompanyinelectronicmode.Pleaseregistermyabovee-mailinyourrecordsforsendingcommunicationthroughe-mail.
Signature:…………………………………………(First Holder)
Date:……………………Note: Shareholder(s) are requested to keep the Company informed as and when there is any change in the e-mail address.
" "
""
15
ContentsNotice ........................................................................................................................................................................................... 01
Reference Information .................................................................................................................................................................... 16
Letter to Shareholders..................................................................................................................................................................... 17
Integrated Report .......................................................................................................................................................................... 19
Directors’Profile............................................................................................................................................................................. 21
ListofSeniorExecutives................................................................................................................................................................. 24
POWERGRIDS’sPerformance.......................................................................................................................................................... 25
Five Years’ Summary ..................................................................................................................................................................... 26
Directors’ Report ............................................................................................................................................................................ 29
AnnexureI-ManagementDiscussionsandAnalysis.......................................................................................................................... 46
AnnexureII-BusinessResponsibilityReport.................................................................................................................................... 69
AnnexureIII-ParticularsrequiredSection134(3)(m)oftheCompaniesAct,2013.............................................................................. 79
AnnexureIV-CommentsofC&AGu/s143(6)(B)oftheCompaniesAct,2013................................................................................... 83
AnnexureV-SecretariatAuditReport............................................................................................................................................. 85
AnnexureVI-FormNo.MGT9....................................................................................................................................................... 89
AnnexureVII-ReportonCorporateGovernance.............................................................................................................................. 111
AnnexureVIII-CertificateonCorporateGovernance.......................................................................................................................... 132
AnnexureIX-FormNo.AOC-2...................................................................................................................................................... 133
AnnexureX-FormNo.AOC-1.......................................................................................................................................................137
AnnexureXI-AnnualReportonCorporateSocialResponsibility.......................................................................................................... 139
Balance Sheet ................................................................................................................................................................................ 176
StatementofProfitandLoss............................................................................................................................................................ 177
StatementofChangeinEquity........................................................................................................................................................ 178
CashFlowStatement...................................................................................................................................................................... 180
Notes.............................................................................................................................................................................................182
Independent Auditor’s Report .......................................................................................................................................................... 156
AnnexureIndependentAuditor’sReport..........................................................................................................................................260
Consolidated Financial Statements ................................................................................................................................................... 265
16
Reference InformationPOWER GRID CORPORATION OF INDIA LIMITED
CIN: L40101DL1989GOI038121
Registered OfficeB-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi-110016PhoneNo.-011-26560112,Fax–011-26601081
Chief General Manager - Company Secretary & Compliance OfficerMs. Divya Tandon
Corporate Office“Saudamini”, Plot No. 2,Sector29,Gurgaon-122001(Haryana)PhoneNo.–0124-2822000,2823000,Fax–0124-2571762
Website: www.powergridindia.comE-mail ID: investors@powergrid.co.in
For the Financial year under review i.e. 2018-19Statutory Auditors
1. M/s. S. K. Mittal & Co., Chartered AccountantsMittalHouse,E-29,SouthExtensionPart-II,NewDelhi–110049.Email:skmittalca@yahoo.co.in
2. M/s. R. G. N. PRICE & Co., Chartered AccountantsSimpsonBuildings,861,AnnaSalai,Chennai-600002.Email:rangarajan@rgnprice.com
3. M/s. Kothari & Co., Chartered Accountants1E,Neelkanth,26-B,CamacStreet,Kolkata–700016.Email:manaswykothari@yahoo.co.in
4. M/s. PARAKH & Co., Chartered AccountantsA-101,PratikApartments,Ramachandra Nagar 3,NearCadburySignal,ThaneWest,Mumbai–400604.Email:sharmapsd@yahoo.com
Cost Auditors
1. M/s R. M. Bansal & Co., Cost Accountants,A-201,TwinTowers,Lakhanpur,Kanpur–208024.Email:cmarmbansal11@gmail.com
2. M/s Chandra Wadhwa & Co., Cost Accountants,1305&1306,VijayaBuilding,17, Barakhamba Road,NewDelhi-110001.Email:wadhwafai@gmail.com
Registrar & Share Transfer Agent:
Equity Shares:
Karvy Fintech Private Limited KarvySeleniumTowerB,Plot31-32,Gachibowli Financial District, Nanakramguda,Hyderabad–500032Ph.:040-67162222,Fax:040-23420814TollFreeNo.18003454001Email:einward.ris@karvy.comWebsite:www.karvyfintech.com
Bonds:MCS Share Transfer Agent Limited,F-65,OkhlaIndustrialArea,Phase-I,NewDelhi-110020.Ph:011-41406149-52Telefax.:011-41709881E-mail:admin@mcsregistrars.com
BankersIndian Overseas BankBank of BarodaCanara BankState Bank of IndiaPunjab National BankUnionBankofIndiaHDFC Bank LtdICICI Bank LtdIDBI BankCorporation BankAxisBankLtdKotak Mahindra Bank
Shares Listed at:NationalStockExchangeofIndiaLimitedBSE LimitedDepositories:National Securities Depository LimitedCentral Depository Services (India) Limited
Debenture TrusteesFor Bond Series XVIII to LXII Issue, GoI Bond
IDBI Trusteeship Services Ltd.AsianBuilding,GroundFloor,17,R.KamaniMarg,BallardEstate,Mumbai-400001
Phone:022-40807000,Fax:022-66311776, Email:itsl@idbitrustee.com
17
LETTER TO SHAREHOLDERS
Dear Shareholders,It gives me immense pleasure to share with you the progress made by your company during the year2018-19.
Friends, India has become the 6th largest economy* now. The GDP of the country has grown at 6.8%duringtheyear2018-19.TherealGDPgrowthofIndiafortheyear2019-20isprojectedat7%.
Fiscal 2019 was another year of remarkable performance on various fronts for your Company.
I am glad to sharewith you that your Company alongwith its subsidiaries has added 8,468circuitkm(ckm.)ofExtraHighVoltage(EHV)transmissionlines,40,119MegaVoltAmpere(MVA)transformation capacity and 10 new substations during the year. The Assets capitalized (including TBCBprojects)wereabout₹27,325crore(inclusiveofFERV)andCapitalexpenditurehasbeen₹25,807croreagainstthetargetof₹25,000Crore.Anumberoflargeandimportantprojectswerecommissioned/completed during the year including 765kV Double Circuit (D/C) Jharsuguda-Dharamjaygarhline(betweenEasternandWesternRegions);765kVD/CBanaskantha-Chittorgarhline(betweenWesternandNorthernRegions)&BanaskanthaSubstation;765kVSingleCircuit(S/C) Dharampuri-Madhugiri (Tumkur) line; 765kV D/C Bhuj Pool-Banaskantha line & Bhujsubstation;765kVD/CAngul-Jharsugudatransmissionline;765kVD/COrai-Aligarhtransmissionline (2nd Ckt.) & Orai ICT; and 400kV D/C (Quad) Punatsangchu-Alipurduar transmission line(IndianPortionofIndo-Bhutantransmissionline).
AsonMarch31, 2019, yourCompanyalongwith its subsidiaries owns&operates a transmissionnetworkof 1,58,298 ckmof inter-Statetransmission lines,245nos.ofEHVAC&HVDCsub-stationswith transformationcapacityof371,912MVA.TheGrossFixedAssetsofyourCompany&itssubsidiariesstoodat₹2,07,214.57croreasonMarch31,2019asagainst₹1,79,889.67croreasonMarch31,2018.
Ontheoperationalfront,yourCompanymaintainedavailabilityofthetransmissionnetworkat99.71%withnumberoftrippingperlinecontainedat 0.46.
InFiscal2019,yourCompanydisplayedanimpressivefinancialperformance.Onastandalonebasis,yourCompanyregisteredaTotalIncomeof₹35,618.07croreandProfitafterTax(PAT)of₹9,938.55crore,agrowthof15.77%and20.55%,respectivelyoverthecorrespondingTotalIncomeandPATinFiscal2018.OnaConsolidatedbasis,yourCompanyregisteredaTotalIncomeandProfitafterTax(PAT)of₹35,661.32croreand₹10,333.52crore,respectively.
YourCompanyalsomadeimpressiveprogressinitsTelecombusiness.TherevenuefromTelecombusinessincreasedto₹663.25crore,registeringanincreaseof9.34%overthepreviousyear.TotalTelecomnetworkcoverageincreasedbyabout27%tomorethan60,900kmfrom47,735km in the previous year.
On the Consultancy front, the revenues moderated as a number of assignments including the prestigious and challenging 220kV Srinagar Leh TransmissionSystemProjecthavebeencompletedduringtheyear.TherevenuefromConsultancystoodat₹610.93croreduringtheyear.Thenewassignments(domestic/international)securedduringtheyearandsomeoftheearlierassignmentsareunderimplementation.UnderTariffBasedCompetitiveBidding(TBCB),yourCompanysecureditsfirstIntra-StateTransmissionProjectviz.‘EstablishmentofTransmissionSystemforEvacuationofPowerfrom2X660MWJawaharpurThermalPowerProjectandConstructionof400kVSubstationatFirozabadalongwithassociatedTransmissionLines’duringtheyear.Withthis,yourCompanyhassecured13projectsasonMarch31,2019throughTBCB.Iamglad to share with you that seven of these projects have since been successfully completed and elements in other projects are being completed progressively.TheTBCBprojects’contributiontotherevenuesofyourCompanysurpassedthe₹1,000croremarkduringtheyear.Your Company has been working towards implementation of Green Energy Corridors (GEC) for integration of Renewable Energy Resources withtheGridbywayofsettingupofInter-StateTransmissionSystem(ISTS)at765kVand400kVlevelinrenewableresourcerichstatesinthecountry.YourCompanyasCTUhasalsoevolvedacomprehensivetransmissionplanforgridintegrationofvariousRenewableEnergyZones(66.5GW)inthecountry.Towardsfulfillingthecommitmenttowardsthegoalofsustainabledevelopment,yourCompanycontinuedtotakevariousinitiativesincludingadoptionofmoderntechniquesforselectionofmostoptimumroutefortransmissionlinesandconstructionofhighvoltagelevelstransmissionsystem±800kVHVDC,765kVetc.Further,yourCompanyisintheprocessofinstalling5MWpRooftopSolarPVSystemsinitspremises,coveringmore than 50 locations.
Friends,asastepforwardtopromoteuseofelectricvehiclesinthecountryyourCompanyhassetupitsfirstpubliceVfast-chargingstationinHyderabadatMiyapurMetrostationonpilotbasis.Basedontheexperience,yourCompanyisalsoexploringotherlocations/cities.
AsapartofCorporateSocialResponsibility(CSR),yourCompanycontinuedtocontributetosocietyatlargewithmainfocusoninclusivesocial-economicgrowthfordevelopmentofmarginalized&under-privilegedsectionsofthesocietyresidingarounditsareasofoperation.Focusareaofthe Company’s CSR activities during the year were Education and Health initiatives in line with Govt. of India targets besides implementation of projects for construction of community centres, installation of solar street lights and other projects in areas of Rural development, Infrastructure development, Skill development, Health, Education, etc. In addition, as part of ‘Swachh Bharat Abhiyan’, your Company has carried out
*Economic Survey 2018-19
18
construction of toilet blocks in Government schools, construction of individual households’ toilets for development of primitive tribal groups, etc.Also,gainingexperiencefromsettingupof‘POWERGRIDVishramSadan’atAIIMS,NewDelhiwhichhasbeenapplauded,yourCompanyisimplementingsevenmore‘POWERGRIDVishramSadans’inGovt.hospitalsatLucknow,Patna,Guwahati,Ranchi,Bengaluru,DarbhangaandVadodara.YourCompanyhasspent₹195.52croreonCSRactivitiesduringFY2018-19.
YourCompanyhasreceivedrecognitionintheformofawardsonvariousfrontsduringtheyearandsomeofthesignificantandrecentawards/recognitioninclude–
• ‘FastestGrowing ElectricUtility’ in Asia- for the fifth successive year since 2014, based on Platts Top 250Global EnergyCompanyRankings. Globally, the Company was positioned as the 3rdFastestGrowingElectricUtility;
• OneoftheTop25MostInnovativeCompaniesinIndiaattheFifthCIIIndustrialInnovationAwards2018;
• CBIPAward2019for‘BestPerformingTransmissionUtility’andCBIPSpecialJuryAwardfor‘InnovationExcellenceinPowerTransmission’;
• PlatinumPrize(1st prize) in Power Sector Category at the ‘6thFICCIQualitySystemsExcellenceAwards’;
• ‘2018EEIAsia-OceaniaIndexAward’atEEI(EdisonElectricInstitute)GlobalElectrificationForum,forHighestTotalShareholderReturnsinGoldLargeCapitalizationcategory;
• ‘GoodCorporateCitizenAward’categoryatPHDAnnualAwardsforExcellence2018;
• FeaturedinTop100inIndia’sBestPlaceToWorklistfor2019.
OnbehalfoftheCompany,Ithankshareholdersfortheircontinuedconfidenceandsupport.Iwouldalsoliketoexpressmyappreciationtoallouremployees,fortheircontributiontowardstheperformanceoftheCompany.Iamconfidentthatwithadedicatedandcommittedresourceof employees and valuable support of our esteemed stakeholders, your Company will continue to deliver its responsibilities and enhance value to its stakeholders.
Withbestwishes,Yours sincerely
(Ravi P. Singh)Director (Personnel) & CMD
Date: 19th July, 2019Place: New Delhi
21
Shri Ravi P. Singh Director (Personnel) & CMD
Shri Ravi P. Singh (59 years), (DIN: 05240974), is Director (Personnel) of our Company and assigned with additional charge of post of CMD w.e.f. 21.01.2019 for a period of 6 months. He is a Mechanical Engineer from NIT, Allahabad in First Class with Honours and Post Graduate Diploma in HR from AIMA,NewDelhi.HehaspreviouslyheldthepositionsofExecutiveDirector(EasternRegion-II)andExecutiveDirector(HumanResourceManagement&CorporateCommunication) inPOWERGRID.Shri Singh has over 37 years of work experience in the power sector handling various multi-disciplinary functions like HR, Telecom, Contracts, Materials, Planning, Monitoring and Transmission SystemConstruction/O&M.PriortojoiningPOWERGRIDin1991,ShriSinghhasworkedfor10yearsin NTPC. He was appointed as a Director on our Board in April, 2012.
Shri K. Sreekant Director (Finance)Shri K. Sreekant (55 years), (DIN: 06615674) is Director (Finance) of our Company. He is CMA and PGDM(Finance)fromManagementDevelopmentInstitute,Gurgaon.Heiscurrentlywhole-time Director (Finance) of Power Grid Corporation of India Limited (PGCIL) with additional charge of Director (Finance), NTPC Limited w.e.f. 12.02.2019.
Hehasover33yearsofexperienceinthepowersectorintheareasofLongTermFinancialPlanning,Investment Appraisals, formulation of Capital Budgets, Resource Mobilization from domestic and internationalmarkets,CorporateAccounts,Commercial,RegulatoryAffairsandEnterpriseResourcePlanning Systems. He was appointed as a Director on our Board in September, 2016.
Mrs. Seema Gupta Director (Operations)
Mrs. Seema Gupta (57 years), (DIN:06636330) is Director (Operations) of our Company. Prior to takingup thisassignment, shewasExecutiveDirector (NorthernRegion-I) in thecompany.Sheis a graduate Engineer from Delhi College of Engineering (DCE) and also holds a Post Graduate Diploma inManagement from IMT.Ms. SeemaGupta hasmore than35 years of experience inpowersectorandhashandledmulti-disciplinaryfunctionslikeCommercial,InternationalBusiness,CorporatePlanning,CorporateMonitoringGroupandCentralTransmissionUtilityintheCompany.BeforejoiningPOWERGRIDin1991,Ms.Seemahasworkedforabout7years inNTPC.ShewasappointedasaDirectoronourBoardinMarch,2018.
Shri Rajeev Kumar Chauhan Director (Projects) ShriRajeevKumarChauhan,(58years),(DIN:02018931)isDirector(Projects)ofourCompany.HegraduatedfromIITRoorkeeinElectricalEngineeringandhasadiverseexperienceofmorethan34yearsinEHVAC&DCtransmissionsystemcoveringalmostallareasofthetransmissionsystem.HehasbeenassociatedwithPOWERGRIDsince1994andhascontributedtoallsegmentsofPowerSystemManagementinPOWERGRIDi.e.ProjectManagement,CTUPlanning,Design&Engineering(EHV AC & HVDC), Procurement, Site Execution, Operation & Maintenance, Consultancy, DMS,CommercialFunctionsinPOWERGRIDundervariouscapacitiesandhasplayedvitalroleinvariousprestigious HVDC projects of the Company. He has also served for 10 years in NTPC prior to joining POWERGRID in1994.Hehasalsoauthored technicalpapers invarious forums.Presently,he ischairmanofCIGRENSCB4committeeforHVDC&PowerelectronicsandtheBISETD40Group.HewasappointedasaDirectoronourBoardinAugust,2018.
DIRECTORS’ PROFILE
22
Shri Tse Ten Dorji Independent Director
ShriTseTenDorji,(68years),(DIN:03469466)isanI.A.S(Retired).Duringhiscareerover42years,hehasheldvariouspostsinmanyDepartments/MinistriesofGovernmentofIndia.HehasmultidisciplinaryexperiencespanningPersonnel&GeneralAdministration,Finance,Education/Human Resource Development, Animal Husbandry, Planning & Programme Implementation,LandRevenueManagement&DistrictAdministration,etc.HewasappointedasaDirectoronourBoard in February, 2017.
Shri Jagdish I Patel Independent Director
ShriJagdishIPatel(54years),(DIN:02291361)isaB.Sc.,ASTM-UT,MBA(Ind.)hasanillustriouscareer spanningover38years in theareasofEnergyGeneration,MiningandSpace sectorsasengineering solution providers and strategic planner over business auxiliary units. Having beenDirector (Tech.) at Pushpak Trademech Limited, as well as KIA Infrastructure Development Limited and active member of Gujarat Chamber of Commerce and Industry (GCCI), he has served as a memberofseveralinstitutionssuchasDistrictImplementation&IndustrialManagementCommitteeofITI,IndustrialManagementCommitteeofIGTR;PresidentaswellasTreasureratLUB-Gujarat;andmemberofStandingCommittee/TownPlanningCommittee/SolidWasteManagementCommitteeof AMC. He was appointed as an Independent Director on our Board in November, 2015.
Shri Manoj Kumar Mittal Independent Director
Shri Manoj Kumar Mittal (55 years), (DIN: 07937052) graduated in Civil Engineering from BITS Pilaniin1985.HealsoearnedhisM.Sc.&MSdegreesfromthesameInstitute.HeispracticingasConsultingCivil&StructuralEngineerandhasanexperienceofover32yearsinthefieldofCivil&StructuralengineeringConsulting.Healsohasexpertiseinstructuralretrofittingandrehabilitationofstructures indistress.Hehaskeen interest in thefieldofgreen&sustainabledesignofbuiltenvironment. He is member of several professional bodies e.g. IEI (I), IAStructE, ICI, CEAI, CDC, ACCE(I),ACI-IndiaChapter,IBCandIOV.HeismemberofvariousBIScommitteese.g.CED-29,andCED-54&CED-46:P4,P11&P19.PresentlyheisalsoaffiliatedwithSPA-NewDelhiasvisitingfaculty. He was appointed as an Independent Director on our Board in September, 2017.
Shri Ghanshyam Prasad Government Nominee Director
ShriGhanshyamPrasad,(52years),(DIN:08288849)isB.Tech(Electrical)fromIIT,BHU;M.Tech(Energy and Environment Management) from IIT, Delhi and MBA (Finance). He is presently working as Chief Engineer in Ministry of Power, Government of India looking after Reforms and Restructuring (R&R) in Electricity Sector, Operation and Monitoring (OM) of Electricity Grid and TransmissionSector. Earlier, he worked as Chief Engineer (Distribution) in Central Electricity Authority and Director (TransmissionandOM) inMinistryofPower.Hehasalso served for about six years inHaryanaElectricityRegulatoryCommission.HehasvariedandrichexperienceinthefieldofPowerSystemOperation and Electricity Sector. He was appointed as a Director on our Board in February, 2019.
23
Shri Sunil Kumar Sharma Independent Director
ShriSunilKumarSharma(62years),(DIN:03614952)hasservedasChairman&ManagingDirectorofBharatElectronicsLimited.HeisapostgraduatewithMBAandgoldmedalistfromUniversityEngineering College, Bangalore. During his long professional tenure of about 4 decades, he has steered the development& execution of large defence projects and complex IT based nationalE-Governance projects such as Electronic Voting Machine, Biometrics for National PopulationRegisterandSmartCards.HewasappointedasanIndependentDirectoronourBoardinJuly,2018.
Shri M. N. Venkatesan Independent Director
Shri M. N. Venkatesan (63 years) (DIN: 02126022), B.Com, FCA is a practising Chartered Accountant specialising inManagementandFinancialConsultancy.Hehaswideexperienceofmorethan35years in the profession including as Statutory Central Auditor of Large Public Sector Banks for over 30 years. Presently, Shri Venkatesan is a senior partner of M.R. Narain and Co., Chartered Accountants, Chennai. He was appointed as an Independent Director on our Board in July, 2019.
Mrs. A. R. Mahalakshmi Independent Director
Mrs.A.R.Mahalakshmi(49years),(DIN:08187493)isanM.A.,M.B.A.,M.Phil.,P.G.D.L.A.andawoman Entrepreneur. She has been honoured with many awards for her entrepreneurship and social works.ShewasappointedasanIndependentDirectoronourBoardinJuly,2018.
Shri Deepak Kashyap CVO
ShriDeepakKashyap(57years),a1986batchofficerofIndianRailwayTrafficServiceistheChiefVigilance Officer of POWERGRID. He graduated in English Honours from Patna University andhas held various key posts such as CVO, BSNL, DRM, South Eastern Railway, Chief Commercial Manager /GeneralNorthernRailways,Member/Rail LandDevelopmentAuthority, andDirector,CentralVigilanceCommission.Hehasvariedexperienceinadministrative,establishment,vigilance,operations, Revenue, Tendering and allied disciplines. He is also credited with conceptualizing and commissioning Indian Railways’ popular onboard magazine “Rail Bandhu”. He was appointed as ChiefVigilanceOfficerofPOWERGRIDinMay,2019.
24
S.No. Name(S/Sh.) Designation Level Department/Function/Region/ProjectCorporate Centre
1 D.S. Yadav ED E9 Asset Management2 T.C. Sarmah COO E9 BDD,JV&PI3 Sanjeev Singh ED E9 CMG4 Abhay Chaudhary ED E9 Commercial, Regulatory Cell5 D.C. Joshi ED E9 ContractServices&MaterialManagement6 Anil Jain ED E9 Corporate Planning, Cost Engg, CMD Coordination Cell7 Dr. Subir Sen ED E9 CTUPlanning,SmartGrid8 Sanjay Garg ED E9 Energy Management Department9 Rakesh Kumar ED E9 Engg-HVDC10 Ram Naresh Singh ED E9 Engg-(S/s,TL,Civil),FQA11 K.S.R. Murty ED E9 F&A12 Mohammed Taj Mukarrum ED E9 F&A13 N. Shankar ED E9 HR, Law14 Anil Saberwal ED E9 HRD/POWERGRIDAcademyofLeadership-Manesar15 Anil Mehra COO E9 International Business16 Sunil Agrawal COO&CISO E9 IT,ERP,ISD,LD&C,NTAMC-Manesar17 A.K. Singhal ED E9 TBCB Cell18 B.N.De.Bhowmick ED E9 Technology Development Dept.19 A.K. Arora COO E9 Telecom-NewDelhi20 UpendraPande Dy. CVO E9 Vigilance21 Satish Chandra ChiefGM(I/c) E8 Administration, Corporate Communications, Rajbhasha22 K.K. Srivastava ChiefGM(I/c) E8 DMS
Regional Heads23 H.K. Mallick ED E9 NorthernRegion-I,NewDelhi24 Jai Pal Singh ED E9 NorthernRegion-II,Jammu25 Sanjai Gupta ED E9 NorthernRegion-III,Lucknow26 Sunit Nath Sahay ED E9 EasternRegion–I,Patna27 N.K. Ohdar ED E9 EasternRegion–II,Kolkata28 B. Anantha Sarma ED E9 North Eastern Region, Shillong29 S. Ravi ED E9 SouthernRegion–II,Bengaluru30 Dr. Vinod Kumar Khare ED E9 WesternRegion–I,Nagpur31 D.K. Singh ED E9 WesternRegion–II,Vadodara32 Avinash M. Pavgi ChiefGM(I/c) E8 SouthernRegion–I,Secunderabad
Other Heads33 Rajiv Kumar ED E9 NERPSIP, Guwahati34 V. Sekhar ED E9 RPT HVDC Project and associated transmission system Task
force, Bengaluru35 Atul Trivedi ED E9 W/NICProjects,Gurgaon36 Ravindar Kumar S. ChiefGM(I/c) E8 Odisha Projects, Bhubaneswar37 A K Mishra ChiefGM(I/c) E8 RPT HVDC Project, Bengaluru
On Deputation to other Organization(s) 38 T. Pandey ED E9 Bihar Grid Company Limited39 I.N. Jha ED E9 Cross Border Power Transmission Company Ltd.40 A.S. Kushwaha ED E9 JaypeePOWERGRIDLtd.
List of Senior Executives as on 1st July, 2019
26
FIVE YEARS’ SUMMARY - STANDALONEOPERATING RESULTS
Particulars As per Ind AS2018-19
As per Ind AS2017-18
As per Ind AS2016-17
As per Ind AS2015-16
As per Indian GAAP
2014-15(A) EARNED FROM :
Transmission Revenue 32616.99 28447.16 24411.66 19732.06 16450.86OtherOperativeRevenue-Transmission 227.95 48.66 218.62 76.04 70.88Consultancy Revenue-SalesofServices 610.93 662.18 582.43 465.46 380.60Telecom Revenue 663.25 606.59 497.36 392.25 274.89Other Income 1498.95 1001.73 866.63 577.49 602.81
Total Earnings 35618.07 30766.32 26576.70 21243.30 17780.04
(B) PAID & PROVIDED FOR :Employeesbenefitsexpense 1783.57 1599.09 1377.13 993.72 1023.65 Finance costs 9091.42 7590.66 6303.83 5134.93 3979.32 Depreciationandamortizationexpense 10200.67 9091.25 7662.80 6179.80 5085.41OtherExpenses 3053.43 2215.70 1733.11 1394.29 1402.28Total Expenses 24129.09 20496.70 17076.87 13702.74 11490.66 Profit before Tax & Regulatory Deferral Account Balances
11488.98 10269.62 9499.83 7540.56 6289.38
Taxexpense:Provisionfortax(MAT) 2489.43 2169.01 1988.45 1574.79 1280.99DeferredTax(Net) (3465.87) 3140.15 2680.23 1828.64 29.22
(976.44) 5309.16 4668.68 3403.43 1310.21 Profit for the period before Regulatory Deferral Account Balances
12465.42 4960.46 4831.15 4137.13 4979.17
Movement in Regulatory Deferral Account Balances-Income/(Expenses)(netoftax)
(2526.87) 3284.19 2689.00 1811.37 -
Profit after Tax 9938.55 8244.65 7520.15 5948.50 4979.17 Other Comprehensive Income (16.30) 8.03 49.83 (11.97)Total Comprehensive Income for the period 9922.25 8252.68 7569.98 5936.53 Dividend 4514.87 3034.33 1313.12 1103.87 1046.32 DividendTax 909.57 610.64 264.76 221.41 207.56
(` in crore)
27
FINANCIAL POSITION
Particulars As per Ind AS
2018-19
As per Ind AS2017-18
As per Ind AS
2016-17
As per Ind AS
2015-16
Opening Ind AS figures
as on 01.04.2015
As per Indian GAAP
2014-15(A) WHAT THE COMPANY OWNED:
Property,Plant&Equipments(^) 197792.69 177100.25 149730.18 121336.82 89549.41 118264.26Less: Accumulated Depreciation 33932.71 23489.90 14222.22 6394.52 - 28578.05NetProperty,Plant&Equipments(^) 163859.98 153610.35 135507.96 114942.30 89549.41 89686.21CapitalWorkinProgress(includingConstruction Stores)
33578.08 30307.12 35884.13 43795.15 52922.41 52924.15
Investment Property 0.03 0.03 0.03 0.03 0.03 AdvancesforCapitalExpenditure 1056.98 2670.86 3057.92 3020.19 3348.96 3367.44 Non-currentInvestments 2756.53 1608.24 1327.55 836.08 826.07 740.99 Regulatory Assets 8083.27 11304.22 7975.80 5286.80 3475.43 37.72 OtherNon-currentLoans&Advances 19265.82 12094.12 7744.22 6125.58 3832.59 3614.27 CurrentAssets,Loans&Advances 17872.31 12300.20 11050.05 9652.25 7837.91 7930.10 TOTAL (A) 246473.00 223895.14 202547.66 183658.38 161792.81 158300.88
(B) WHAT THE COMPANY OWED:Long Term Loans: -FromBanks&FinancialInstitutions 24736.00 17078.00 12902.00 12031.00 7600.22 7600.22
-ForeignCurrencyLoans 38557.63 32858.02 29511.71 29256.76 26708.25 26713.66-DomesticBonds 67745.88 72484.30 68549.46 58885.55 55003.32 55061.96TotalLong-termBorrowings 131039.51 122420.32 110963.17 100173.31 89311.79 89375.84Current maturities of Long Term Loans 10746.85 7792.64 6234.74 6081.60 4468.56 4468.71WorkingCapitalLoan(short-term) 4300.00 1000.00 1500.00 2000.00 1200.00 1200.00 CurrentLiabilities&Provisions 17067.29 18107.29 17024.39 16202.66 15332.47 16195.81DeferredTaxLiability(Net) 10093.02 13558.89 10418.74 7738.51 5909.87 2472.15 DeferredRevenue-AdvanceagainstDepreciation
1323.45 1504.09 1624.81 1770.66 1911.50 1938.57
DeferredRevenue-DFCFI/EAccount 3960.26 2903.76 3107.26 3818.31 2750.23 2751.22 Grants in Aid 4173.32 559.56 150.30 109.17 73.12 73.12 Non-currentProvisions 368.15 716.87 789.56 650.45 580.23 580.23Othernon-currentLiabilities 4384.01 916.76 927.44 1302.48 1055.36 1078.64TOTAL (B) 187455.86 169480.18 152740.41 139847.15 122593.13 120134.29
(C) NET WORTH OF THE COMPANY REPRESENTED BY :
EquityShareCapital 5231.59 5231.59 5231.59 5231.59 5231.59 5231.59 OtherEquity 53785.55 49183.37 44575.66 38579.64 33968.09 32805.48TOTAL (C) 59017.14 54414.96 49807.25 43811.23 39199.68 38037.07
(D) COMMITTED RESERVESCSRActivitiesReserve(@) 129.52 TOTAL (D) 129.52 TOTAL (B+C+D) 246473.00 223895.14 202547.66 183658.38 161792.81 158300.88CAPITAL EMPLOYED 149618.15 139010.62 121798.88 100310.29 76386.29 75751.79 (NetFixedAssets+NetCurrentAssets)
(` in crore)
28
(` in crore)
(^)‘Property,Plant&Equipment’includes‘OtherIntangibleAssets’also. (@)CSRActivityReserveisnotconsideredasCommittedReserveinIndASFinancialStatements. (#)ForcalculationofDebt-EquityRatio,LoanliabilityalsoincludeCurrentMaturitiesofLongTermLoans. ($)IncludingFTBemployeesandexcludingemployeespostedinPOSOCOonsecondmentbasis.
Particulars As per Ind AS2018-19
As per Ind AS2017-18
As per Ind AS2016-17
As per Ind AS2015-16
As per Indian GAAP
2014-15(E) RATIOS
NetProfittoCapitalEmployed(%) 6.64 5.93 6.17 5.93 6.57NetProfittoNetWorth(%) 16.84 15.15 15.10 13.58 13.09NetWorthperRupeeofPaid-upCapital(₹) 11.28 10.40 9.52 8.37 7.27Debt/EquityRatio(#) 71:29 71:29 70:30 71:29 71:29Current Ratio 0.56:1 0.46:1 0.45:1 0.40:1 0.36:1EarningperShare(Basic&DilutedEPS)(₹) 19.00 15.76 14.37 11.37 9.52 BookValuepershare(₹) 112.81 104.01 95.20 83.74 72.71 Dividendpershare(₹) 8.63 5.80 2.51 2.11 2.00 CapitalExpenditure(includingTBCB)oncashbasis
25807 25791 24429 22584 22456
(F) OTHER IMPORTANT INFORMATIONLength of Transmission Lines (CKT) 153075 148149 139077 129354 115637No. of Substations 242 234 219 207 192
Transformation capacity (MVA) 365282 331163 289543 254848 231709No.ofEmployees($) 9886 9465 9346 8606 8575TransmissionNetworkavailability(%) 99.71% 99.81% 99.79% 99.72% 99.78%
FINANCIAL POSITION (Contd.)
29
Directors’ Report 2018-19 To,
Dear Shareholders,
The Board of Directors have the pleasure of presenting the Thirtieth Annual Report on performance of the Company together with the Audited FinancialStatementsforthefinancialyearended31st March 2019.
Keepinginlinewiththepasttrend,FinancialYear(FY)18-19hasprovedtobeyetanotheryearofexcellenceandachievements.
InFY2018-19,Transmissionassetsconsistingof8,468 circuit km (ckm.)ofExtraHighVoltage(EHV)transmissionlines,40,119 Mega Volt Ampere (MVA) transformation capacity and 10 new substations have been added. This includes 3,543 ckm., 6000 MVA transformation capacity and 2 substations added during the year by the Company’s wholly owned subsidiaries. At the end of 31st March 2019, the total transmissionassetsofPOWERGRIDanditssubsidiariesstoodat1,58,298 circuit km of transmission lines, 245 substations and 3,71,912 MVA of transformation capacity.
ThemajormilestonesachievedduringFY2018-19areasbelow:
Asset Capitalization of ₹27,325 crore including ₹6,633 crore through subsidiaries and Foreign Exchange Rate Variation (FERV) of ₹1,456 crore.
Capital Investment of ₹25,807 crore including ₹4,008 crore in subsidiariesagainstthetargetof₹25,000crore.
Transmission System Availability was 99.71% with number of trippings per line contained at 0.46.
Total Income of ₹35,618.07 croreandProfitAfterTax(PAT)of₹9,938.55 crore on standalone basis and total Income of ₹35,661.32 crore and PAT of ₹10,033.52 crore on consolidated basis.
Interim Dividend of ₹5.83 per share(FaceValue₹10/-each)paidandinaddition,recommendationmadefor₹2.50 per shareasfinaldividendfortheFY2018-19,subjecttoapprovalofshareholders.
Inter-regionalpowertransfercapacityof8,400 MWaddedbytheCompanyduringtheyear.Thecumulativeinter-regionalpowertransfercapacity added by the Company stood at 84,090 MW at the end of 31st March 2019.
About 12,950 km of Optical GroundWire (OPGW) network added by the Company and its subsidiaries to support voice and datacommunicationwithRegionalLoadDespatchCentres(RLDCs)/StateLoadDespatchCentres(SLDCs)foreffectivegridmanagement.
Telecom revenue rose to ₹663.25 croreinthefinancialyearendedon31stMarch2019.
Consultancyrevenueinthefinancialyearendedon31st March 2019 was ₹610.93 crore.
220 kV Srinagar Leh Transmission System commissioned, thereby connecting strategically important Ladakh region with the National Grid.
TotalIncomeofsubsidiariescrossed₹1,000croremarkat₹1,056croreandProfitAfterTaxstoodat₹193crore.
POWERGRIDacquired itsfirstIntra-StateTransmissionProjectthroughTariff Based Competitive Bidding (TBCB) for evacuation of powerfrom2x600MWJawaharpurThermalPowerPlantandassociatedtransmissionsystem.
FourTBCBsubsidiariesviz.POWERGRIDParliTransmissionLimited,POWERGRIDWaroraTransmissionLimited,POWERGRIDJabalpurTransmissionLimitedandPOWERGRIDNMTransmissionLimitedbecamefullyoperational.
1.0 FINANCIAL PERFORMANCE
TheCompanymaintaineditssoundFinancialPerformanceinFY2018-19.TheFinancialPerformanceduringFY2018-19ascomparedtothepreviousyear2017-18onstandalonebasisissummarizedbelow:
Description 2018-19 2017-18 Y-o-YGrowthINR (Cr.) US $ (M) INR (Cr.) US $ (M)
RevenueTransmission Charges 32,844.94 4,707.60 28,495.82 4,084.25 15.26%Consultancy-SaleofServices 610.93 87.56 662.18 94.91 -7.74%Telecom 663.25 95.06 606.59 86.94 9.34% Other Income 1,498.95 214.84 1,001.73 143.58 49.64 % Total Income 35,618.07 5,105.06 30,766.32 4,409.68 15.77 %
(AllFiguresexceptpersharedataisinunitsasindicated)
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1.1 DIVIDEND PAYOUT
ForFY2018-19,theCompanyhasproposedafinaldividendof₹2.50per share in addition to ₹5.83 per share of interim dividend paid inFebruary,2019takingtotaldividendfor thefinancialyear2018-19to₹8.33 per share. The total dividend payout for the year amounts to ₹4,357.91crore(includinganinterimdividendof₹3,050.02crore).Thefinaldividendshallbepaidafteryourapprovalat theAnnualGeneralMeeting.
1.2 TRANSFER TO RESERVES
FortheFY2018-19,appropriationofprofithasbeenmadeasfollows:
a. GeneralReserve: ₹4,250crore b. BondsRedemptionReserve: ₹2,029.20crore c. SelfInsuranceReserve: ₹249.07crore
2.0 MoU PERFORMANCE
TheCompanywasrated‘Excellent’forfinancialyear2017-18foritsperformanceagainstMoUwithMinistryofPower,therebycontinuingwiththetrendofconsistentlyachieving‘Excellent’ratingsincesigningofitsfirstMoU,fortheyear1993-94.
3.0 OPERATIONAL PERFORMANCE
3.1 Asset Management
As on 31st March 2019, the transmission assets owned and operated by the Company (consolidated) consist of 1,235 lines and 245 nos. EHV substations including 15 nos. High Voltage Direct Current (HVDC) substations upto +800kVlevel,726nos.transformers,11nos.STATCOMs,5nos.StaticVarCompensators(SVC)besidesSeriesReactorsandThyristorControlledSeriesCompensators(TCSC)/FixedSeries Compensators (FSC) at various places.
ReliableoperationofsuchlargeandcomplextransmissionnetworkcallsformaintainingtheassetsinutmostconditionandtheCompanyachieves this by meticulous advance planning as well as adopting best technological tools available for maintenance and monitoring of the
Description 2018-19 2017-18 Y-o-YGrowthINR (Cr.) US $ (M) INR (Cr.) US $ (M)
Profit After Tax (PAT) 9,938.55 1,424.47 8,244.65 1,181.69 20.55 %Earnings per Share ₹19.00 US$0.27 ₹15.76 US$0.23 20.56%Book Value per Share (₹) ₹112.81 US$1.62 ₹104.01 US$1.49 8.46%Gross Fixed Assets 1,97,792.69 28,349.25 1,77,100.25 25,383.44 11.68%Long Term Borrowings* 1,41,786.36 20,321.97 1,30,212.96 18,663.17 8.89%Net Worth 59,017.14 8,458.81 54,414.96 7,799.19 8.46%Debt Equity Ratio 71:29 71:29 -Return on Net Worth 16.84% 15.15% -
* Including current maturities of Long Term Borrowings.Convenienceconversionat1US$=69.77INRason31.03.2019.
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transmissionsystem.Somesuchstate-of-the-arttechniquesbeingdeployedformanagementofassetsacrosstheCompanyincludeOn-lineConditionMonitoringforSubstationEquipment,On-lineTransientMonitoringSystem,AerialPatrolling,GISMappingetc.
3.2 National Transmission Asset Management Centre, Manesar (NTAMC) and Regional Transmission Asset Management Centers (RTAMCs)
NTAMC has been established for remote operation of the system and monitoring of various parameters at National level and ten numbers RegionalTransmissionAssetManagementCentres(RTAMCs)forsimilarfunctionatRegionallevel.Duringtheyear2018-2019,38nos.ofsubstationshavebeenintegratedinNTAMCforremoteoperations.Withthis,atotalof210substationsarenowintegratedunderNTAMCforremoteoperationfromcontrolcenters.Thesearemannedbyexpertson24x7basistoprovideexperthandlingofthesystem.
3.3 Operation & Maintenance Benchmarking in POWERGRID
ToachieveoptimumperformanceinallspheresofOperation&Maintenance(O&M)activities,theCompanyundertakesexternalaswellas internalbenchmarking. In theExternalBenchmarkingprocess, theCompany isapartof ‘InternationalTransmissionOperationandMaintenanceStudy(ITOMS)’-aglobalO&Mbenchmarkingplatformpresentlycomprising32leadingglobalpowertransmissionutilities.The results of the benchmarking study are discussed and the best maintenance practices are shared amongst the participating utilities. The Company has consistently improved its performance in both line and substation categories.
Internally, the operational performance of regions are evaluated with the objective to identify gaps in operational practices of various regions,identifykeyinitiativesandfocusareasinanefforttobring,atpar,theperformanceofregions.AbenchmarkingsystemhasalsobeendevelopedforregionalO&Mperformanceonmonthlybasisforcriticalparameters.Thebestpracticesofregionsaresharedonregularbasis.
Measures/initiatives,takenbytheCompany,tomitigatethechallenges/concernshavebeendescribedintheManagementDiscussionandAnalysis (MDA) Report.
3.4 Adoption of latest technology for better availability of transmission lines
The Company has adopted various technological tools for ensuring better availability of transmission lines such as Aerial Patrolling of Transmission lines, App based Patrolling etc., the details of which are described in the MDA.
3.5 Other key operational achievements during the year
3.5.1OverhaulingofsixnumberHVDCconvertortransformersatPusaulisubstationwascarriedoutonsite.Thishassavedtimeandmoneyrequiredfortransportationofthetransformerstothefactoryforoverhauling.
3.5.2Rigorousin-houseprotectionauditofmorethan80substationswasundertaken.
3.5.3 There has been no major outage of any station during the year.
3.6 Cyber Security
The Company is committed to security of its infrastructure assets from the risks associated with cyber security and has an Information SecurityPolicy,implementationofwhichisreviewedannuallythroughthirdpartyauditsforISO:27001Certification.ThecybersecuritypreparednessoftheCompany’sbusinessesandcybersecurityinitiativesarebeingreviewedbyChiefInformationSecurityOfficer(CISO)throughtheInformationSecurityDepartment.TheCorporateOfficeandtheRegionalHeadquartersarecertifiedforISO:27001InformationSecurity Management System. The advisories and guidelines issued by the designated statutory bodies, namely Indian Computer Emergency ResponseTeam(CERT-In)andNationalCriticalInformationInfrastructureProtectionCentre(NCIIPC)arecompliedwith.TheCompanyalsoparticipatesinmock-drillprogramsorganisedbyCERT-In.Allconcernedstaffaresensitizedintheareaofcybersecuritythroughspecificawareness programs.
Thepossiblerisksduetocyber-attacksareminimisedbyisolatinggridconnectedintelligentsystemsfromexternaldatanetworks.Digitalsignalscontrollingoperationofcriticalequipmentarekeptfurtherconfinedandisolatedbydesigntopreventanylargescalecascadeevent.
4.0 PROJECT IMPLEMENTATION
4.1 Project Management
Efficientandtimely implementationbeingthecornerstoneof infrastructureprojects, theCompanyundertakesdetailedplanningoftheprojects through various tools and processes such as Integrated Project Management and Control Systems (IPMCS) and Enterprise Resource Planning(ERP).Also,theprojectsunderimplementationareregularlyreviewedatvariouslevelstopre-empt/addressanyobstaclesfacedin timely implementation. Interactive meets with Industry partners are also a regular feature with the objective of sharing industry best practices and resolution of issues. To further bolster business relationships, the Company has been annually felicitating the vendors for their performance.
4.2 Physical Achievements
4.2.1Anumberofimportantandcriticalpendingprojects,whichwerestuckupduetoRight-of-Way(RoW)issuesindifferentStates,werecompletedthroughCompany’spersistenteffortsandwiththehelpofHon’blePM’sinstitutionalprojectmonitoringplatform–Pro-ActiveGovernance&TimelyImplementation(PRAGATI)andconstantsupportfromMinistryofPower,MinisterofStateforPower(Independent Charge), Central Electricity Authority (CEA) and the States’ administration.
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ThelistofprojectscompletedbytheCompanyduringtheyearincludesInter-RegionalSchemes,renewableenergyintegrationlinked,projects for cross border interconnections etc.
Inter-Regional Schemes
• 765kVDoubleCircuit(D/C)Jharsuguda-Dharamjaygarhline(betweenEasternandWesternRegions);and
• 765kVD/CBanaskantha-Chittorgarhline&BanaskanthaSubstation
(betweenWesternandNorthernRegions).
Renewable Energy Integration linked
• 765kVSingleCircuit(S/C)Dharampuri-Madhugiri(Tumkur)line;
• 765kVD/CBhujPool-Banaskanthaline&Bhujsubstation;
• 400kVD/CKadapa-Hindupur-NPKuntaSystem&KadappaGasInsulatedSubstation(GIS);
• 400kVD/CBanaskantha-Sankharitransmissionline;
• 400kVD/CMundraUMPP–Bhujtransmissionline;
• 400kVD/CTumkur(Pavagada)-Hiriyurtransmissionline;
• 400kV D/C Bhadla (POWERGRID) – Bhadla (RVPN) transmission line along with 1X500 MVA ICT at 765/400/220kV Bhadla(POWERGRID)substation;
• 400/220kVTirunelveliPoolingStation(GIS)2x500MVAICTs;and
• 2x1500MVA765/400kVICTsatSrikakulamalongwithbayextensionatSrikakulam.
Cross border interconnections
• 400kVD/C(Quad)Punatsangchu-Alipurduartransmissionline(IndianPortionofIndo-Bhutantransmissionline).
Other Major transmission lines and substations
• 765kVD/CAngul-Jharsugudatransmissionline;
• 2ndCkt.of765kVD/COrai-Aligarhtransmissionline&OraiICT;
• 400kVD/CSilchar-Melriattransmissionline;
• 400kVD/CDharampuri-Somanhalitransmissionline;
• 400kVD/CKota-Jaipur(South)transmissionline;
• 400kVD/CFarakka-Baharampurtransmissionline;
• LILOofbothcircuitsofBamnauli–Samaypur400kVD/CtransmissionlineatTughlakabadalongwithGIS;
• 132kVS/CTezu-Namsaitransmissionline(strungonD/Ctowers)&Namsaisubstation;and
• STATCOMsatLucknow,Nalagarh,Kishenganj,Ranchi,Jeypore,Gwalior,Aurangabad&Solapur.
Projects implemented by subsidiaries acquired through TBCB
• POWERGRIDParliTransmissionLimited
765kVD/CWarorapoolingstation-Parlitransmissionline; 765kVD/CParli(New)-Solapurtransmissionline; 765/400kVpoolingstationatParli(2x1500MVA);and 400kVD/C(Quad)Parli(New)-Parli(PG)transmissionline. • POWERGRIDWaroraTranmissionLimited 765kVD/CGadarwara-Waroratransmissionline; 765/400kVpoolingstationatWarora(2x1500MVA);and LILOofbothcircuitsof400kVD/CWardha-Parli(PG)atpoolingstationnearWarora. • POWERGRIDJabalpurTransmissionLimited 765kVD/CVindhyachal-Jabalpurtransmissionline. • POWERGRIDNMTransmissionLimited 765kVS/CSalem-Madhugiritransmissionline;
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• POWERGRIDSouthernInterconnectorTransmissionSystemLimited 400kVD/CSrikakulam-Garividitransmissionline;and 400kVD/CCuddapah-Madhugiritransmissionline.5.0 CAPITAL INVESTMENT AND FUND MOBILIZATION Duringtheyear,theCompanymadeacapitalinvestment(CAPEX)of₹25,807crore.Towardsthis,₹11,112croreweremobilizedthroughprivateplacementofbonds&termloans,₹6,808croreweremobilizedthroughExternalCommercialBorrowings(ECB)/Suppliers’Credit,₹7,282crorefromInternalResourcesand₹605croreinformofgrantsreceivedfromPowerSystemDevelopmentFund&fromCentralFinancialAssistance(Ministry of New and Renewable Energy).TheCompanysignedfollowingnewloanagreementsduringFY2018-19:• UnsecuredSyndicatedTermLoanfacilityofJPY22billionwithSumitomoMitsuiBankingCorporation(SMBC),AozoraAsiaPacificFinance
Ltd. and The Bank of Yokohama.• TermLoanfacilityof€200millionfrom‘KfW,FrankfurtamMain,(‘KfW’),Germanyforfinancinghighcapacitytransmissionprojects,first
suchloanagreementsignedbytheCompanyunderKfW’s‘PromotionalLoanCategory’.• TermLoanof₹10,000crorefromStateBankofIndia.
Investmentapprovalsfortransmissionprojectsworthabout₹3,000crorehavebeenaccordedduringtheyear.
6.0 COMMERCIAL PERFORMANCE
TheCentralElectricityRegulatoryCommission(SharingofInter-StateTransmissionChargesandLosses)Regulations,2010,whichcameintoeffectfrom01.07.2011,providesforcomputationofPointofConnection(PoC)chargesandlossesforsharingoftransmissioncharges.The recovery of transmission charges for the services provided by the Company for Designated Interstate Customers (DIC) is based on the SharingRegulations, 2010 and subsequent amendments thereof. As per theCERCSharingRegulations, theCompany, asCentralTransmissionUtiliy,raisesbillsfortransmissionchargesonthebeneficiariesi.e.,DICsonbehalfofallISTSLicenseesinthecountryandcollects&disbursesthepaymentstotheLicenseesaspertheprovisionsofthesaidregulations.TheCompanyisfulfillingtheassignedresponsibilitieseffectivelyandachievedcollectionefficiencyof94.6%forFY2018-19.
CERChasnotifiedTariffRegulations,2019videnotificationdated7thMarch2019forthetariffblock2019-24.ThesalientfeaturesoftheTariffRegulations,2019arehighlightedintheMDAsection.
7.0 SUBSIDIARIES ACQUIRED THROUGH TARIFF BASED COMPETITIVE BIDDING (TBCB)
TheCompanyhas13noswhollyownedsubsidiariesacquiredthroughTBCB,and7oftheseareundercommercialoperation.Thedetailedinformation about Company’s TBCB subsidiaries and their performance has been described in MDA section.
8.0 STRENGTHENING OF NATIONAL GRID AND CROSS BODER INTERCONNECTIONS
8.1 Inter - Regional Power Transmission Capacity
Twointer-regionaltransmissionlineshavebeencommissionedduringtheyear,viz.,765kVD/CBanaskantha-Chittorgarhtransmissionline,765kVD/CJharsuguda-Dharamjaygarhtransmissionline,therebyincreasinginter-regionalpowertransfercapacityby8,400MW.
WiththisadditionbytheCompanyandfurther4200MWaddedbyothertransmissionlicenseesduringtheyear,cumulativeinter-regionalpowertransfercapacityoftheNationalGridstoodat99,050MWason31stMarch2019.
8.2 Cross-Border Interconnections
Presently, electrical interconnectionswithneighbouring countries-Nepal,Bhutan,BangladeshandMyanmarexistwithaggregatepowertransfercapacityof3150MW.Theinterconnectionsarebeingfurtherstrengthenedforincreasedexchangeofpower.Someofthe upcoming and planned interconnections are as under:
8.2.1InterconnectionswithNepal
• Gorakhpur(India)–NewButwal(Nepal)400kVD/C(Quad)transmissionlineisunderdiscussion.
• Upgradationtoratedvoltageof400kVD/CMuzaffarpur-Dhalkebartransmissionline.
8.2.2InterconnectionswithBhutan
• Forevacuationofpowerfromvariousupcominghydro-electricpowerprojects(HEPs)inBhutan,Jigmeling(Bhutan)–Alipurduar(India)400kVD/C(Quad)transmissionlineisunderimplementation.
8.2.3InterconnectionswithBangladesh
• Baharampur(India)–Bheramara(Bangladesh)400kVD/C2nd transmission line is under implementation.
• Katihar(India)–Parbotipur(Bangladesh)–Bornagar(India)765kVD/Ctransmissionlineisunderdiscussion.
• UpgradationofSurajmaninagar-ComillaD/Clineat400kValongwith500MWHVDCBacktoBackatComilla.
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9.0 CONNECTIVITY, LONG TERM ACCESS (LTA) & MEDIUM TERM OPEN ACCESS (MTOA)
POWERGRIDasCTU,beingthenodalagencyforprocessing&grantofConnectivity,LongTermAccess(LTA)andMediumTermOpenAccess(MTOA)hasgrantedConnectivityto449nosofeligibleapplicationsforaquantumofabout1,86,597MWandhasgrantedLTOA/LTAto237nosapplicationsforaquantumofabout1,05,122MWsofar.Inaddition,basedonthetransmissioncapacitymarginsavailability,theMTOAhasalsobeengrantedto138nosofapplicationsforatotalquantumofabout14,517MWby31st March 2019.
10.0 QUALITY MANAGEMENT
QualityManagementSystemhasbeenimplementedintheCompany,adoptingbestpracticestoensurequalityofgoodsprocuredaswellasqualityofphysicalworksinthefield.Toaccomplishthis,apartfromprocuringgoodsatcompetitivepricesandrevisionoftechnicalspecifications,lotofeffortshavebeenputonqualityassuranceandvariousmeasureshavebeentakenasmentionedbelow:
• DevelopedandmaintainedsystemsandproceduresalignedwithintegratedmanagementsystemcomprisingISO9001:2015forQualityManagementSystem,ISO14001:2015forEnvironmentalManagementSystemandOHSAS18001:2007forOccupationalHealthandSafetyManagementSystem.BSIGroup Indiahasmaintained the certificationafter rigorousaudits. Systemswerealsoaudited formaintenanceofSocialAccountabilityStandard,SA:8000,EnergyManagementSystemsasperISO:50001andInformationSecurityManagement Systems as per ISO:27001.
• WithatargettomovetowardszeroproductinspectionasperPOWERGRIDqualitypolicy,inspectionsatsomeofthemanufacturingunitsoftowers,conductor,cables,transformeroiletc.werereducedafterthoroughprocessauditsasperstandardizedguidelines.Man-dayssaved were used for process audits at other manufacturing units for system improvements.
• SpecialprogramwasconductedwhereinQCI-MSEmeetforZEDi.e.,ZeroDefectZeroEffectwasorganized.ProgramwasahugesuccessandwasappreciatedbyallMediumandSmallEnterprises(MSE)andQualityCouncilofIndia(QCI)team.
• Toensureavailabilityofsparesforeaseofmaintenance,effortshavebeenmadeovertheyearstowardsindigenisation,duetowhichmostof765kVClassTransformers/Reactors/otherequipmentandevensomeofGISequipmentarepresentlybeingsuppliedfromIndiaitself.Newplantsandfacilitieshavebeenset-upinIndiabyanumberofforeignmanufacturersforequipmentlikeGISequipmentupto765kV,OpticalGroundWires(OPGW),765kVreactors,STATCOMetc.,thuscontributingto‘MakeInIndia’program.
• TheCompanypromotedanumberofexistingvendorstoupgradetheirequipmenttohighervoltagelevel&covermoreitemstoincreasevendor base thus creating more competitive environment.
11.0 INFORMATION TECHNOLOGY AND ENTERPRISE RESOURCE PLANNING
11.1Aspartof continuedefforts towardspaper-lessoffice, transparencyanddigitalizationof communication, thee-officesystemhasbeenimplementedandmadeoperational.Onlineweb-streamingfacilityhascommencedfortrainingprograms.Thisfacilitatesliveparticipation across the country and also helps in archiving of training sessions in document repository for future references.
11.2 The ERP System implementation has been successfully completed in all regions in phases. The additional functionalities have also become operational in the integrated ERP system as discussed herein below.
11.2.1 Aspartofdigitalinitiative,POWERGRIDOnlinePaymentUtility(POPU)applicationPortalhasbeendevelopedforreceivingalltypesofpaymentstoPOWERGRID.Thishasresultedin100%digitalizationofpaymentreceiptsbyPOWERGRID.
11.2.2 AllpaymentsbeingmadebyPOWERGRIDhavebeentotallycentralizedwithERPsystem.Thisfacilitatedbettermanagementofworkingcapitalandcash-flowneedsatoptimallevelsinacost-effectivemanner.
11.2.3 Company’s establishments throughout the country have been facilitated with biometric attendance system, which has been integrated with ERP system
12.0 TECHNOLOGY DEVELOPMENT
Duringtheyear,POWERGRIDAdvancedResearch&TechnologyCentre(PARTeC)commenceditsfull-fledgedoperation.Thefacilityisequippedwithstate-of-the-artlaboratoriesconsistingofpowersystemanalysisandrealtimesimulationfacility,protection,automationandcontrolfacility,WideAreaMeasurementSystem(WAMS)facility,EquipmentDiagnosticsfacility,CalibrationandDiagnosticsfacility,Material Science facility and Smart Grid facility. Various studies on power system, substation automation system, Phasor Measurement Units (PMUs), material analysis, equipment diagnosis and calibration are being conducted to cater to the in-house requirement oforganization.Thefacilitiesarealsobeingusedasatrainingfacilityforimpartinghands-ontrainingprogramsonsubstationautomationsystem, smart grid etc. to engineers of the Company as well as of various utilities.
SoftwaresystemforfaultdetectionofTransformer,basedonthedataacquiredfromonlineDissolvedGasAnalysissensorsinstalledonvarioustransformers,hasbeendevelopedin-house.ThisisbeingoperatedatNTAMCandallRTAMCsoftheCompany.Withtheuseofthissystem,theCompanyenvisagestotaketimelyactionforpreventingfailuresoftransformers/reactors.
A mobile capacitor bank at 33kV level, to meet the needs of distribution companies for utilization at low voltage system conditions, has beendevelopedandsuccessfullyfieldtestedinHaryanaVidyutPrasharanNigamLimited(HVPNL)system.ItseffectondistributionsystemhasbeenstudiedwithrespecttotheHVPNLsystemandtheresultsobtainedareaffirmative.
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13.0 SMART GRID AND E-VEHICLE CHARGING
13.1 Smart Grid Knowledge Centre
The Company has established Smart Grid Knowledge Center in association with Ministry of Power, Govt. of India at PARTeC, Manesar. TheCentreisequippedwithvariousworkingmodelsandfunctionalitiespertainingtoSmartGridandaimstobringawarenessonthe applications of Smart Grid technologies and its demonstration in a holistic manner. The Centre is providing learning environment and capacity building on all major smart grid attributes viz., Advanced Metering Infrastructure, SCADA, Outage Management System, Renewable Integration, Microgrid, Smart Home, EV with Renewable Charging Infrastructure and Cyber Security etc. to the stakeholders.
13.2 Smart Transmission
TowardsSmartTransmission,theCompanyisimplementingWAMSbasedUnifiedRealTimeDynamicStateMeasurement(URTDSM)project.ThisinvolvesplacementofPMUsatall400kVandabovesubstations,generationswitchyardsof220kVandabove,HVDCterminals and Phasor Data Concentrator (PDC) at SLDCs, RLDCs & NLDC control centres along with OPGW based backbonecommunication infrastructure.
Duringtheyear,154nosPMUs(for44stations)and12nosPDCsatSLDCsandRLDCswereaddedbytheCompanytoenablesynchronous measurement of real time grid parameters across the widely spread grid with low latency in data transfer to control centres,whichwouldbeveryeffective inreliable,secureandeconomicalgridoperation.Withthis,cumulativePMUsandPDCscommissioned by the Company as on 31st March 2019 stood at 1,319 nos. (for 329 stations) and 29 nos (for all RLDCs and 24 SLDCs) respectively.
13.3 EV Charging Infrastructure
TheCompanyispromotingelectricvehiclesinthecountrybyinstallingEVchargers&usingelectricvehiclesforofficepurpose.Ithasestablisheditsfirste-taxichargingstationatHyderabadMetro.
14.0 INTEGRATION OF RENEWABLE ENERGY (RE)
Large scale renewable penetration in the grid leads to challenges towards evacuation and its integration. The Company has been working towardsimplementationofGreenEnergyCorridors(GEC)-Inter-StateTransmissionSystem(ISTS)at765kVand400kVlevelinrenewableresource rich states in the country.
TheCompanyhasalsoevolvedacomprehensivetransmissionplanforgridintegrationofvariousRenewableEnergyZones(66.5GW)inthe country.
15.0 Renewable Energy Management Centres
Toenableforecastingofrenewableresourcesandefficientmanagementofintermittentrenewablegeneration,theCompany,onbehalfofGovt.ofIndia,isestablishingRenewableEnergyManagementCentres(REMCs)at11(eleven)locationsinvariousSLDCs/RLDCs/NLDC.
16.0 ENERGY EFFICIENCY
Realisingthesignificanceofenergysavingaspectofsustainabledevelopment,theCompanyisaggressivelypursuingbusinessopportunitiesin energy saving by way of conducting energy audits of various Govt. as well as private agencies e.g. industries, institutions, commercial establishments,StateTransmissionUtilitiesetc.TheCompanyisaBEEGrade-IEnergyServiceCompany(ESCO)forundertakingenergyefficiencyprojectsandhasalargepoolofcertifiedenergyauditors/energymanagerswhoarewellqualifiedtoofferenergyefficiencysolutions.
During the year, the Company secured a no. of consultancy assignments in the energy audit business as below:
• Energy auditing of Power Transmission Corporation of Uttarakhand Limited (PTCUL) substations along with assessment oftransmission losses.
• Preparationof14nos. InvestmentGradeEnergyaudit report forvariouscitiesunder ‘AtalMission forRejuvenationandUrbanTransformation(AMRUT)’SchemeofGovt.ofIndia.
• Energyauditof transmissionnetworkofBSESRajdhaniPowerLimited(BRPL)throughDelhiElectricityRegulatoryCommission(DERC).
Futher,theCompany,hassignedanMoUwithUttarPradeshPowerCorporationLimitedforreplacementofagriculturalpumps,whichshallpavethewayforESCOprojectsinUttarPradesh.TheCompanyisalsoexploringpossibilityofcooperationwithIITRoorkeetoworkinthemutuallyagreedareassuchasspacecooling,lightingpowerqualityandwastetoenergy.TheCompanyisalsoempanelednowwithEnergyManagementCentre,Keralaasanenergyauditingagencyandisexploringavenuesforworkingtogetherintheareasofmutualinterest in Energy Management.
17.0 TELECOM BUSINESS- ‘POWERTEL’
Leveragingitscountry-widetransmissioninfrastructure,theCompanyunderthebrandname‘POWERTEL’isprovidingarangeofservicesunderitsUnifiedLicenseasNationalLongDistance(NLD)andInternetServiceProvider–Category‘A’(ISP-‘A’)Serviceauthorizations.
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TheCompanyhasundertakenexpansionofthenetworkusing200GDWDMsystem,todoubletheexistingcapacity(12Tbps)innexttwoyears.TheCompanyisalsopartneringwithlastmileconnectivityprovidersandStateElectricityBoardsforRightofWay(RoW),fiberleasing,etc.toincreaseitsnetworkreach,itspresenceandpotentialbusinessopportunities.Asaresult,thenetworkcoveragehasincreasedtomorethan60,900kmbytheendofFY2018-19fromabout47,700kminthepreviousyear.
TheCompanyhasbeendisplayingexcellentperformance in theareasofprovidingtelecombandwidth,MutliprotocolLabelSwitching(MPLS) based Virtual Private Network (VPN), internet and other communication services to Telecom Service Providers, Government departmentsandenterprisecustomers.TheTelecomBackboneAvailabilityfortheFY2018-19was99.98%.TheCompanyhasastrongportfolioofdiversecustomersduetoitsexcellentavailabilityandreliability.Anumberofcustomersfromvarioussegmentshavereposedtheir trust in the reliability of Telecom Services rendered by the Company by continuing to place the orders on it on long term basis. This hasresultedintocontinuousgrowthofrevenuefromTelecombusinessinspiteofconsistentlyfallingtariffs.
17.1 Bharat Net In line with the vision of the Government to connect 250,000 Gram Panchayats (GP) under ‘Bharat Net’ towards digital India, the
Company,underitsscope,islayingopticalfibrecablestoconnecttoGramPanchayats,whereverrequired.AspertherevisedscopeofworkunderPhase-I,39districtsspreadacross5Statesviz.,AndhraPradesh,Telangana,HimachalPradesh,Jharkhand&Odisha,covering 10,436 GPs, have been allotted to the Company, by Bharat Broadband Network Limited (BBNL). Out of these, 9,793 GPs havebeenconnectedonfibrebytheendofFY2018-19.
InPhase-IIofproject,theCompanyhasbeenassignedtheworkofdevelopmentofnetworkin2states,i.e.Uttarakhand(5,706GPs) and Himachal Pradesh (2,994 GPs). Survey work and tendering activities of contracts for implementation of projects are under progress.
17.2 Enterprise and Internet Service Provider (ISPs) Business ConnectivitytoEnterpriseSegmentCustomers isprovidedonCompany’sMPLSCloud.TheCompanyprovidesbothLayer-2and
Layer-3VPNswithportcapacityrangingfrom2Mbpsto10Gbps. Company is peered with global content providers for providing IP Transit services to ISPs. The IP Transit service reduces cost and
enhancesservicequalityofhostedcontentforISPsandinturnfacilitatesthemtoofferbetterinternetservicestotheirusersinacosteffectivemanner.
17.3 Telecom Tower Business WithaviewtoincreasetheCompany’stelecomservicesportfolioandtoprovideagreenandcleansolutiontobridgetheurban-
ruraltelecomdivideinthecountry,ithasbeenexploringtheuseofitstransmissiontowersastelecomtowersandalsotoprovidepowertotheassociatedtelecomequipmentviz.,mobileantennae,MWantennae,electronicequipmentetc.,placedonthetower.TheCompanyhadundertakenapilotinthisregardin2017whichhasbeeninsuccessfuloperationsincethen.Subsequently,theCompany had approached the regulator, CERC for its approval for utilization of transmission assets for telecom tower business. CERC hasrecentlyallowedPOWERGRIDtogoaheadtoprovidetransmissionlinetowersforTelecomapplicationwithsuitablerevenuesharingwiththebeneficiaries.Company’sextensivetransmissiontowernetworkwillprovidebackbonetelecomnetworkandwilleliminatethelocationdisadvantageofsmalldistanttownstowardsaccessibilityandaffordabilityofhighspeedinternet.
17.4POWERGRIDisendowedwithattributesessentialforDataCentrebusinessviz.,reliablepower,telecomconnectivityandsecurespace. Accordingly, the Company is working on a business strategy for Data Centre business opportunity.
18.0 BUSINESS DEVELOPMENT & CONSULTING SERVICES Utilising its expertise inprojectmanagementaswell as technical capabilities establishedover the years in the coreareasof power
transmission,sub-transmission,distributionmanagement,loaddispatchandcommunications,SmartGridetc.,theCompanyisprovidingitsservicesasconsultant/trainingpartnertovariousagencieswithinaswellasoutsidetheCountry.
18.1 Domestic Market
Duringtheyear,theCompanysuccessfullycommissionedtheprestigiousandchallenging220kVSrinagar-Alusteng-Drass-Kargil–LehTransmission Project. The project was implemented by the Company on behalf of Govt. of India, as Project Management Consultant. Withitscommissioning,thestrategicallyimportantLadakhregionofJammu&KashmirhasnowbeenelectricallyconnectedtotheISTS (Northern) Grid. The project was dedicated to the Nation by Hon’ble Prime Minister on February 3, 2019.
Besides,onbehalfofGovt.ofIndia,theCompanyisalsoimplementing,asaConsultant,importantprojectsindifficultgeographicterrainsofSikkimandNER.UndertheNERPowerSystemImprovementProject(NERPSIP),fundedbyTheWorldBank&Govt.ofIndia, transmission schemes in 6 States of NER are being implemented. During the year, 23 elements were commissioned including transformation capacity addition of 312 MVA. Further, the Company is acting as Consultant to Govt. of India for its ‘Comprehensive SchemeforStrengtheningofTransmission&DistributioninArunachalPradesh&Sikkim’project.
TheCompany receivedabout50newconsultancyassignments indomesticmarketduringFY2018-19.Themajor consultancyassignmentsduringtheyear2018-19include:
• ImplementationofSmartGridProjectsin19TownsofJammu&KashmirunderPrimeMinisterDevelopmentPackage(PMDP).
• ConstructionofsubstationbaysatPOWERGRIDsubstations(ISTSGrid)forinjectionofpowerfromvariousrenewable(Wind&Solar) developers.
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• DiversionworksofvarioustransmissionlinesofPOWERGRIDinfringingthecorridorof‘PurvanchalExpressway’,beingconstructedbyUttarPradeshExpresswaysIndustrialDevelopmentAuthority(UPEIDA)
• DiversionworksofvarioustransmissionlinesofPOWERGRIDforNationalHighwaysAuthorityofIndia(NHAI).
• Diversionof25transmissionlinesinGujarat&MaharashtraforupcominghighspeedrailCorridorfromAhmedabadtoMumbai(Bullet Train Project).
TheCompanyhasenteredintoaMemorandumofunderstanding(MoU)withNeyveliLigniteCorporation(NLC)fordevelopmentofNeyveli Township of NLC as mini Smartcity having all attributes of Smartcity.
18.2 International Market
On the International front also, the Company has been providing consultancy to various clients. During the year, the Company successfully completed the following Consultancy assignments:
• Prestigious‘CASA1000Project’plannedforexportofsurpluspowertoAfghanistan&PakistanfromhydroelectricprojectsofKyrgyzstan&Tajikistan.
• SecondBlockof1x500MWHVDCbacktobackstationatBheramara(Bangladesh)tofacilitateenhancementofinterconnectioncapacity between India and Bangladesh.
PowerGridCompanyofBangladesh(PGCB)placedanotherorderforprovidingconsultancyservicesforestablishmentof500MWHVDCBack-toBackstation,interconnectingSurajmaninagar(India)andComillaNorth(Bangladesh).
During the year, the Company secured ten nos of consultancy assignments, which include ‘Project Management Consultancy ServicesforTransmissionSystemassociatedwithArun-3HEPinNepal’,consultancyservicesforDesign&Constructionof400kVD/CTransmissionlineassociatedwithPunatsangchu-IandIIHydroelectricprojects,studytourtoIndiafordelegatesofSouthernAfrican power Pool etc.
The Company has signed a Memorandum of Cooperation with Korea Electric Power Corporation (KEPCO) for a period of two years to promotebilateralcooperation,explorethebusinessopportunitiesanddevelopbusinessinpowersector.Areasofcooperationshallcovertransmissionlines&substationsconstruction,O&M,powersystemreliabilityandefficiencyenhancement,SmartGridincludingAMI, EV charging, micro grid etc.
19.0 CONTRIBUTION IN GOVT. OF INDIA SCHEMES FOR DISTRIBUTION REFORMS
The Company has been making valuable contribution in Govt. of India’s schemes related to distribution reforms in the Country.
TheCompanyhasachieved itsassignedtargetsof releasingserviceconnections in theStatesofOdisha,UttarPradesh,JammuandKashmirbyDecember2018,undertheGovt.ofIndiamissionofconnectingeachandeveryhousehold.
19.1 Rural Electrification (RE) works under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
UnderGoI’sDDUGJY/PrimeMinister’sDevelopmentPackage(PMDP)forruralelectricityinfrastructureandhouseholdelectrification,theCompanyhassofarimplementedinfrastructureworkforruralelectrificationinninetyfive(95)districtsofTen(10)Statesinthecountry at a cost of about `10,802crore.Tilldate,totalinfrastructurehasbeencreatedforelectrificationof87,838nos.villages(including partiallyelectrified&un-electrifiedvillages)andserviceconnectionshavebeenprovided toabout49.49 lakhsBPLhouseholds.
Further,REworksunderDDUGJY/PMDPschemesin8districtsofJ&Karealsoinprogresswherethescopeincludes4nos33kVsubstationsinJammu,5Nos33kVsubstationsinKashmirand2nos66kV&2nos33kVsubstationsinLeh&Kargilareas.
Progress of RE works in FY 2018-19 is as below:
19.1.1 REWorksinOdisha
Villageinfrastructurewascompletedin4,249villagesand4,98,197serviceconnectionswereprovided.Augmentationworkof64nos33kVsubstations,outoftotal89substationscompleted.
19.1.2 REWorksinJ&K
Villageinfrastructurewascompletedin190villagesand6,040serviceconnectionswereprovided.Workin2substationsof33kV in Jammu and 1 substation in Kashmir is in progress.
19.1.3 REWorksinUttarPradesh
VillageInfrastructurewascompletedin345villagesand17,380serviceconnectionswereprovided.Augmentationworkof5 nos 33kV substations was completed and 2 new 33kV substations have also been charged.
20.0 CONSERVATION OF LAND AND ENVIRONMENTAL CONCERNS
Transmissionprojectsareconsideredbyandlargeenvironmentallybenignduetothefactthattheydon’tinvolvedisposalofanypollutants/waste in various environmental matrices, i.e. air, water or soil. Nevertheless, the Company, being a responsible corporate entity, addresses any residual environmental or social impacts associated with its business following the cardinal principles of Avoidance, Minimization and
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MitigationasoutlinedinitsEnvironmentalandSocialPolicy&Procedure(ESPP).Indoingso,itleveragestheroleoftechnologybynotonlyadoptingtheexistingmoderntechnologicaltoolsandtechnologiesdevelopedindifferentpartsoftheworldbutalsoemphasizesonin-housetechnologydevelopmentmeetingthenationalrequirement.
InacountrylikeIndia,whichcatersto18%oftheworldpopulation,whilehaving2.4%ofworld’slandmass,conflictsrelatedtolandresourcesarenotuncommonduetopresenceofdifferentcompetingusergroups.TheCompany,asafirmbelieverinaddressingthepressing social needs of the society, has always been forthcoming in up gradation and adoption of new and better technologies such as GasInsulatedSwitchyard(GIS)whichrequireslesserareacomparedtothetraditionalAirInsulatedSwitchyard(AIS).Additionally,ithastakenapolicydecisiontosecurelandforitssubstationsthroughdirectpurchaseonwillingbuyer-willingsellerbasisonmarket/negotiatedrate toavoidpublic resistanceandcourt intervention facedduring landacquisition.LandforJeerat,Chandauti,Saharsa&Sitamarhisubstations were secured through this method during the year.
AnotherareawhereitisabletomakesignificantcontributioninreducinglandrequirementisRightofWay(RoW)throughinnovativetowerdesignssuchasspecialcompacttower,poletypetowerandMulti-circuittowers.Thesetechnologicalinterventionsnotonlyreducedtherequirementofprecious landresourcesandsocialriskstoprojectsbutalsohelped inpreservationofenvironmentbyminimizingforest and vegetation involvement. Further, construction of High Capacity Power Transmission Corridors (HCPTCs) for transmitting power at higher voltage levels (765kV HVAC, +800kVHVDC)notonlyreducedtransmissionlossesbutalsoensuredtransmissionofmorepowerperunitofRoW(MW/meterofRoW).
Intheareaofenvironmentalpreservationalso,adoptionofnewandmoderntechnologieshashelpedtheCompanybyputtingitfirmlyon the path of Sustainable Development. In addition to technologies indicated above, adoption of tools like Remote sensing and GPS has resultedintheselectionofmostoptimumrouteforthetransmissionlines,thus,avoiding/minimizingenvironmentallysensitiveareassuchas Forest, Protected Areas, important wetlands, important Bird and Biodiversity Areas, elephant corridors etc.
Anotherkey initiative to reduceenvironment footprint includesupgradationofexisting linesby reconductoring themwithadvancedconductors to enhance the carrying capacity of such lines. This has helped in saving lot of forest and tree cover which might have been affected,ifnewlinesweretobeconstructedforsuchenhancedtransmissionofpower.RecognizingtheimportanceofsolarpowerincombatingClimatechangeandin-linewithGOI’scommitmenttowardsParisAgreement,theCompanyisintheprocessofinstalling5MWpRooftopSolarPVSystemsinitspremises,coveringmorethan50locations.Thisinitiativewillresultinsavingof7-8millionunits(MUs)ofGrid connected energy per annum, thereby, reducing atmospheric emission of 35,916 mT of CO2peryear.Anothersignificantinnovationdone by the Company is the use of inductive power in earth wire for powering of telecom antennas. This inductive power which otherwise goes waste will eliminate the use of DG sets (a constant source of pollution and Green House Gas emission) for powering of telecom Base Transceiver Station (BTS) units. The technology has been successfully tested at pilot scale and regulatory approval of the CERC has also beenreceived.OtherinitiativesinthisdirectionaremakingRainWaterHarvestinganintegralpartofsubstationdesign,installationofLEDbulbs&solarstreetlightinginsubstation,fuelcatalystsdevicesforDieselGenerator(DG)setsetc.,whichfurtherstrengthenedtheCompany’s agenda of sustainable development.
21.0 CORPORATE SOCIAL RESPONSIBILITY
The Company discharges its Corporate Social Responsibility (CSR), by committing itself to contribute to the society, through initiatives that have positive impact on society at large, especially the community in the neighbourhood of its operations. The main objective of CSRinitiativesisimprovementinthequalityoflifeofmarginalizedandunder-privilegedsectionsofthesocietyresidingarounditsareasof operation.With this approach, the Company carries out various CSR activitieswith thrust on Rural Development, InfrastructuralDevelopment, Skill Development, Health, Education, Environment etc.
DuringFY2018-19,theCompanyspent₹195.52croreandsanctionedmorethan200CSRprojectsofvalueofapprox.₹360crore,thatwillbeexecutedoverthenext2-3years.FocusareaoftheCompany’sCSRactivitiesduringFY2018-19wereeducationandhealthinitiativesin line with Govt. of India targets besides infrastructure development in rural areas like construction of community centres, internal roads, culverts as well as projects like installation of solar street lights, drinking water facility etc. The company provided ambulances, conducted healthcheck-upcampsandprovidedinfrastructuralsupporttogovernmenthospitals/CommunityHealthCentre/PrimaryHealthCentre,etc. and organized livelihood generating skill development programmes for youths through various government agencies.
To help economically weak patients and their attendants, creation of patient support infrastructure at prominent health centres, like AIIMS, State Govt. Medical Colleges, and Hospitals etc., has been given special focus over the last few years. In this direction, the Companyhasconstructed300bedded‘POWERGRIDVishramSadan’atJ.P.ApexTraumaCentre,AIIMS,NewDelhi,whichwasdedicatedto thenationby theHon’blePMon29thJune,2018.Sevenmore ‘POWERGRIDVishramSadans’arebeingestablished in theGovt.hospitals at Lucknow, Patna, Guwahati, Ranchi, Bengaluru, Darbhanga and Vadodara, where outpatients from distant locations approach for specialised medical treatment.
During the year, Company participated in ‘Swachh Bharat Abhiyan’, as a part of Swachhta initiative. Besides construction of toilet blocks in Government schools, construction of individual households’ toilets for development of primitive tribal groups was also taken up across the Country. ‘Swachhta Pakhwada’ was also observed in all units of the Company across the Country.
TheCompanyhasitsownedandoperatedSkillDevelopmentCentresineightofitsSubstationsinAssam,Manipur&WestBengal,whichimparttrainingonTransmissionLineTowerErection.Besides,theCompanyhasalsotiedupwithIndo-GermanInstituteforAdvancedTechnology(IGIAT),VizagandIndoGermanToolRoom(IDTR),Indoreforimpartinghigh-endskilltrainingtoyouthsonaresidentialbasisintheircampus.About1,100youthsweretrainedduringFY2018-19andmostofthemaregainfullyemployed
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Detailsof theCSRpolicyareavailableonCompany’swebsite,athttp://10.100.18.171/sites/default/files/CSR_Policy_2015_0.pdf.TheAnnualReportonourCSRactivitiesisenclosedasAnnexureXIoftheDirectors’Report.
22.0 CITIZEN’S CHARTER
Citizen’s Charter has been formulated for the Company providing a visible front of its Vision, Mission and Objectives., The Citizens’ Charter consistingofCompanyprofile,commitments,expectationsfromcitizens,IntegratedManagementPolicy,servicesoffered,valuesandstandards of services, access to information and grievance redressal is available on its website.
23.0 OUR PEOPLE - OUR STRENGTH
TheCompany,beingaserviceorganisation,hasalwaysrecognisedPeopleasitscorestrengthanditfirmlybelievesthatemployeegrowthandorganizationalgrowthmoveinsyncandthiscanbedeliveredlargelythroughawell-articulatedlearninganddevelopmentsystemwithin the organization together with a culture of mutual respect and trust.
AsonMarch31,2019,theemployeestrengthoftheCompanystoodat9,255asagainst8,900onMarch31,2018,whichisexclusiveofthe employees on Contract.
23.1 Human Resource Development
Committedtothecauseofcontinuouslearninganddevelopmentofitspeople,theCompanyhasestablished‘POWERGRIDAcademyof Leadership (PAL)’, a state-of-the-art, world class institute at itsManesar complex near Gurgaon. The facility provides a wide rangeoftrainingincludinginduction,hands-on,managerialandbehaviouralprograms to its employees. These programs, in the electricity sector, cover areas such as sector overview, transmission technology &systemmanagement,hotlinemaintenance,SmartGrid&DistributionManagement,behavioural/leadershipdevelopmentprogramsetc.
Duringtheyear,theCompanyconducted825traininganddevelopmentprograms, at its PAL facility, its Employee Development Centres in regions and also at premium educational institutes and centres of learning in India and abroad. Further, the Company’s web based competency based training management system has been upgraded withupdatedcompetencydirectory.Anandroid-basedmobileapp‘PALManesar’ has been developed to make it easy for employees to access many web based applications from their handheld devices.
InFY2018-19,thecompanycarriedoutacurrentstateassessmentofits HR processes and practices against the globally acclaimed People Capability Maturity Model (PCMM) framework. The company was one of the few organisations in Public Sector assessed to be at Maturity level3.TheexistingHRProcessesandpractices inthecompanyarebeing further strengthened and upgraded in line with PCMM. Through PCMM implementation, the company aims to streamline and align its policies and practices to global best practices. PCMM’s emphasis on commitment, measurement and improvement will lead to a stronger foundation for continual business excellence through workforce andprocess capability improvement.
The Company is also leveraging its people capabilities and the physical infrastructure at PAL to provide customised functional and behavioural programsonconsultancybasistoexternal(domesticandinternational)stakeholders also. Training programs carried out through Ministry ofExternalAffairs (MEA) forSouthAfricanPowerPool comprisinganumberofSouthAfricannationsandCapacityBuilding&Institutional Strengthening (CBIS) programs for North Eastern States were some important training assignments taken up during the year.
23.2 Employee Welfare
The Company is continuously updating its welfare policies in line with industry trend and to meet the changing needs for its employees. IssuesaresuccessfullyaddressedthroughtheNationalandRegionalBipartiteCommittee(PNBC/PRBC),ajointconsultativeforumcomprisingmanagementandworkmenrepresentativeselectedthroughsecretballot.WageRevisionofExecutives,SupervisorsandWorkmeneffectivefrom1st January, 2017 has been implemented during the year.
23.3 Grievance Redressal Grievanceredressalisalwaystaken-uponpriorityintheCompany.Bothemployeegrievanceandpublicgrievancearegivenutmost
importanceandeffortsaremadetoresolvethempromptly.Adedicatedteammonitorsandensuresgrievancesareredressedtimelyandimpartiallyunderstrict&unbiasedframeworkafterthoroughlyanalysingthefactsanddata.Thesameisreviewedregularlyby
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theseniormanagement.TheemployeegrievanceisaccordedtoppriorityandtheCompanyhasa3-tierstructureforexpeditiousresolution of grievance within the broad framework of policy guidelines.
23.4 Ensuring Social Justice TheCompanyhasconstitutedaseparatecelltolookafterandsafeguardthestatutoryprovisionsforSC/ST/OBC&Personswith
Disabilities(PwD)categoriesofemployees.ThereservationcellassiststheLiaisonOfficerwholooksafterthewelfare&safeguardofSC/ST/OBC&PWDemployees.LiaisonOfficeralsoensuresthatthere isnodiscriminationonthebasisofcaste,religion&disabilities amongst the employees. To ensure effective discharge of duties by LiaisonOfficer across all establishments of thecompany, separateLiaisonOfficer foreach regionhasbeennominated.TheCompany implementsalldirectivesandguidelineswith regard to reservation policy issued by Government of India. Annual inspection is also conducted to ensure implementation of directivesissuedbyGoI.PeriodicmeetingisalsoheldwithrepresentativeoftheassociationofSC/STandOBCtoresolveissues,ifany.
The company is also committed to gender diversity and considering that women constitute 7.42% of its total workforce, theCompany continuously strives to make the workplace, safe and better, for its women with its policy interventions and learning and developmentinitiatives.TheHRDDepttoftheCompanyalsodesignsspecificwomen-centricprogramswithfocusonempowermentandmentorshipforwomenandspecialprogramsarealsoconductedontheInternationalWomen’sDay.
23.5 Sports and Cultural Activities TheCompanyorganizesIntra&Inter-regionalSportsCompetitionsforCricket,Badminton,Volleyball,Athletics,Kabaddi,Football,
Chess,Carrom,TableTennis,Bridgeetc.andparticipatesintheInter-CPSUSportsmeetsorganisedundertheaegisofPowerSportsControlBoard.POWERGRID teamhasemergedwinners inTableTennis,Cricket,Chess (women)and runnersup inVolleyball,Badminton(women),KabaddiandAthletics.Oneofouremployees,ShriJ.MukherjeestoodfirstinNationalChampionshipinParaTable Tennis and represented Indian team at the International Paralympic Championship 2019 held in Amman, Jordan and won the Silver medal for the country.
CulturalprogramsareregularlyconductedatvariousestablishmentsoftheCompanyforpromotinghealthycommunityliving;andfestivals are celebrated collectively by organizing milan samarohs and other activities etc.
24.0 PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE AspertherequirementoftheSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionsandRedressal)Act,2013,andRules
madethereunder,InternalComplaintCommittees(ICC)areinplacetoredresscomplaintsreceivedregardingsexualharassment.TheCompanyhasbeenconducting training/workshopboth formaleand femaleemployees sensitising themabout the issuesand lawsrelatingtoSexualHarassment.
Duringtheyear,05suchtrainingprogrammeswereconductedacrosstheorganization.Therewasnocomplaintofsexualharassmentduring the year.
25.0 IMPLEMENTATION OF OFFICIAL LANGUAGE (RAJBHASHA) The Company is sensitive towards its responsibilities, heritage, social and cultural values. In pursuance of Govt. of India’s Rajbhasha Policy
topromoteIndianlanguagesandRajbhasha“Hindi”,theCompanyhasmadeallroundeffortstointegrateandpromoteuseofHindiinitsofficialworksatalllevels.
ToensuretheincreaseduseofOfficiallanguage,variousactivitiessuchasAnnuvadAbhayaasKaryakram,workshops,trainings,motivationalprograms are organized in the Company. Computer trainings are imparted to enhance the working knowledge in Hindi on computers. Hindiclassesarealsobeingorganizedfornon-HindispeakingemployeesthroughHindiTeachingScheme.Lecturesonheritage,socialandcultural concerns are also being delivered by eminent scholars on regular basis to motivate the employees towards increased working in Hindi.
Various activities are undertaken to publicize the Rajbhasha, e.g. Akhil Bhartiya Rajbhasha Sammelans, Technical conferences in Hindi, Kavi Sammelans (Poetry sessions), Plays, publication of monthly articles in Hindi via emails etc. Also, various Hindi competitions are being conducted in the organization throughout the year with special emphasis during Hindi Pakhwada, Swachchta Pakhwada, Vigilance AwarenessWeek,QaumiEktaSaptaah,Pt.DeenDayalUpadhyayJanmshatiDiwasetc.alongwithdepartmentalmeetingsaswellasOfficialLanguageImplementationCommittee(OLIC)meetings.TheCompany’sHindilibraryisconsideredasoneofthebestHindilibrariesamongPublicSectorUndertakings.Morethan14,500books,53HindiMagazinesonvarioustopicsand16Hindidailynewspapersareavailable for the employees.
Attractive incentive schemes for employees working in Hindi have been implemented as per the government guidelines. Also various awardandrewardschemeshavebeenintroducedtoencourageemployeestoactivelyparticipateinpromotionofHindi,bygivingarticles/write-upsforin-housemagazines,readinglibrarybooksetc.
For creatingawarenessamong theemployees, and tomotivate them tomaximiseuseofHindi inofficialworksand forpublicityofofficiallanguage,AllIndiaOfficialLanguageConferenceCumTechnicalSeminarswereorganisedateightplacesduringtheyearbytheCompany.Duringthedaylongevents,employeesfromdifferentregionsoftheCompanyalongwithvariousmemberofficesofTownOfficialLanguageImplementationCommitteeparticipatedwheredifferentsessionsonofficiallanguage,aswellasontechnicaltopicse.g.health,informationtechnologyetc.andmulti-topicquizwereheld.
TheeffortsmadebytheCompanywererecognisedinseveralforaduringtheyear2018-19.VariousawardswereconferredbydifferentTownOfficialLanguageImplementationCommittee(TOLICs)undertheaegisofMinistryofHomeAffairs,Govt.ofIndiaregardingbest
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ImplementationofOfficialLanguage.Besides,Company’seffortswerealsoappreciatedduringvariousinspectionsanddiscussionsoftheHon’bleCommitteeofParliamentonOfficialLanguageandbyHindiAdvisoryCommitteemeetingsondifferentoccasions.
26.0 STAKEHOLDER ENGAGEMENT & CORPORATE IMAGE The Company has been persistently working towards building a long term sustainable relationship with its stakeholders and it has always
believed that reliable and timely communication is the hallmark of stakeholder engagement. For internal stakeholders, communication streams such as e-magazines like Communiqué and Cue; displaymagazine LOUNGE and
quarterlymagazinespublishedbyregionalofficesregularlyapprisetheemployeesaboutthedevelopments,achievements,events,andalso the viewpoints of management.
Regular interactions between management, analysts and other stakeholders have been instrumental in bringing transparent work culture intheorganization.Evocativefilmsanddocumentaries,madeonspecificprojects(SrinagarLehTransmissionSystemandIPDSworksinVaranasi) captured and highlighted the hard work and project management skills of the workforce of the Company.
TheCompanyalsoregularlyparticipatesinvariousdomesticandinternationalexhibitionsandduringtheyear2018-19,itparticipatedinsuch conferences including those in Myanmar, Nigeria, Russia and Abu Dhabi where it displayed its competencies and capabilities.
27.0 RIGHT TO INFORMATION In compliance to ‘Right to Information Act, 2005’, an appropriate mechanism is in place across the Company for promoting transparency
andaccountability,whereintheCompanyhasnominatedCentralPublicInformationOfficer/AppellateAuthoritiesatitsCorporateOfficeandRegionalofficesacrossthecountrytoproviderequiredinformationundertheprovisionsofAct.
Further,foreffectiveprocessing,monitoring,andmanagementofRTIsandAppeals,aweb-basedonlineRTIPortalhasbeendevelopedinPOWERGRID.TheRTIportalisenvisagedtofacilitatetimelyreplyofRTI/AppealtotheapplicantbyrealtimemonitoringofRTIs/Appeals. Also, the portal facilitates in generation of various RTI reports, knowledge sharing with regard to replies, latest RTI circulars and guidelines etc.
InFY2018-19,total1,501nos.ofRTIapplicationswerereceivedintheCompanyandprocessedaspertheAct.RTIAwarenessPrograms/WorkshopswereorganizedindifferentregionstoapprisetheemployeeswithlatestupdatesontheRTIAct,2005andCentralInformationCommission (CIC) decisions.
28.0 COMMITMENT TO TRANSPARENCY & VIGILANCE FUNCTION Recognizing the importance of good governance, the Company advocates the principles of Transparency, Probity and Ethics in its
management functioning. The Vigilance Department of the Company functions as an integral part of the management. The department ensures that best ethical practices are followed in the organization.
• Emphasis on Preventive Vigilance Although the Vigilance Department performs preventive, proactive, as well as punitive functions to strengthen the organizational
process and to minimize the malpractices in various systems and activities of the organization, the emphasis is on preventive and proactivevigilance.Whilepreventivevigilancefocusesonwhethertherighttypeofsystemsexistorneedtobere-engineered,proactivevigilanceaimsattheidentificationofopportunitiesandintakingpro-activeactionagainstpotentialthreats.
DuringFY19,47surprise inspectionsand59ChiefTechnicalExaminer(CTE)Typeinspections/process-on-lineinspectionswereconducted.PursuanttoVigilanceinspectionsandobservations/recommendations,manysystemimprovementsinvariousfunctionsof the organisations have been implemented.
• Preventive Vigilance Workshops as part of Capacity Building AspartofCapacityBuilding,WorkshopsonPreventiveVigilancewereconductedat theCorporateCentreaswellasatvarious
RegionsoftheCompany.Duringtheyear,23PreventiveWorkshopswereconductedfor690non-vigilancepersonnel.ThePreventiveVigilanceWorkshopscontainmoduleofEthicsManagementwhichenablestheemployeestoidentifyanddealwithethicaldilemma.
• Vigilance Awareness InpursuanceofthedirectionsofCentralVigilanceCommission,theVigilanceAwarenessWeek2018wasobservedbyPOWERGRID
inallitsofficesacrosstheCountryfrom29.10.2018to03.11.2018inlinewiththethemeforthisyear“EradicateCorruption-Builda New India”.
VigilanceAwarenessWeekwascelebratedwithgreatenthusiasmandfervouracrossallofficesinIndiaandabroadalongwiththemanagement, its employees and their family members.
TheWeekcommencedwiththeIntegrityPledgeinCorporateOfficeandacrossallofficesoftheCompanyandwasextendedtoallthestakeholders.Tosensitizethenext-gentotheethicalvalues,anumberofactivitieswereorganizedinmorethan350schoolsand colleges involving more than 40,000 students.
Walkathonswereconducted inaround200establishmentswhereintheemployeesalongwiththeir familiesparticipatedholdingplacards on integrity, honesty etc. Nukkad Natak with the theme of integrity and transparency were organized in prominent places involving more than 20,000 people. ‘Awareness Gram Sabhas’ were conducted touching more than 15,000 villagers for dissemination ofawarenessinGramPanchayatstosensitisecitizensontheill-effectsofcorruption.CANDOUR,theofficialjournalofPOWERGRIDVigilancedepartmentwasreleasedduringtheVigilanceAwarenessWeek. In linewithGoGreenInitiativeof theCompany, thejournalwasreleasedindigitalform(e-CANDOUR).
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29.0 DISASTER MANAGEMENT The Company has always been at forefront when it comes to contribution in restoration of the power system as well as providing
manpowerandreliefmaterialinanyareahitbynaturalcalamity.InAugust2018,whendevastatingfloodscausedmajordamagesintheStateofKeralaandthedistributionsystemofKeralawasaffected,theCompanyprovidedassistanceinrestorationofsystembysettingupon-SitetestingfacilityandrepairworkshopsfordistributiontransformeratKochi,TrichurandPathanamthitta.Restorationof110kVNeriamangalam-Kuthungallinewasdonebydirectlyconnectingtosubstationthroughstringingacrosstheriver.ReplacementofmedicalequipmentinGovt.HospitalatPampa-SabarimalaalongwithrestorationoftheHospitalwasalsocarriedout.Inadditiontothis,supportwasalsoextendedbysupplyingcommonreliefmaterialinflood-affecteddistricts.
TheemployeesoftheCompanyalsosupportedintherebuildingeffortsthroughcontributiontoChiefMinister’sReliefFundandsupportingthe cleaning up activities.
30.0 PROMOTION OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) In line with Govt. of India directives for promotion of MSMEs, the Company has been complying with the guidelines. The Company has
beenregisteredonTradeReceivablee-DiscountingSystem(TReDS)platformsofReceivableExchangeofIndiaLimited(RXIL).TradeReceivablesDiscountingSystem(TReDS)istheschemeforfacilitatingthefinancingoftradereceivablesofMSMEsfromcorporateandotherbuyers,includingGovernmentDepartmentsandPublicSectorUndertakings(PSUs),throughmultiplefinanciers.TheCompanyiscontinuouslypursuingwithitsMSMEsupplierstogetthemselveson-boardedonTReDSPlatforms,forwhichdetailedguidelineshavebeenprovided in ‘Tender’ section of theCompany’s officialwebsitewww.powergridindia.com.Suitable provisionshave alreadybeenincorporated in the Bidding Documents of the company for procurements of various products produced and services rendered by Micro andSmallEnterprises in linewithamendment to thePublicProcurementPolicy (Order2012) inNovember2018.Thecompanyhasachievedthetargetofmandatoryprocurementof25%outoftotalannualpurchasesofproductsandservicesrenderedbyMicroandSmallEnterprisesinlinewithPublicProcurementPolicy(Order2012)readinconjunctionwithitsamendmentinNovember2018.TotaleligiblevalueofannualprocurementofgoodsproducedandservicesrenderedbyMSEs(includingMSEsownedbySC/STandwomenentrepreneurs)forfinancialyear2019-20isprojectedtobeintherangeof₹1,000crore.
Further,toencourageanddevelopMicroandSmallmanufacturersforsupplyofinnovative&qualityproducts,MSEvendordevelopmentprograms were conducted during the year at various locations across the Country, wherein presentations were made and discussions wereheldwithnumeroussmallmanufacturersofourCountry.AnumberofMicro,Small&MediumEnterpriseshavebeendevelopedassub-vendorsandapprovedforsupplyofcomponentsforvariousequipment.
31.0 MANAGEMENT DISCUSSION AND ANALYSIS In addition to the issues stated in the Directors’ Report, some issues have been brought out in report on Management Discussion and
Analysis placed at Annexure-I and forms part of the Financial Report.32.0 BUSINESS RESPONSIBILITY REPORT TheBusinessResponsibilityReport,asstipulatedunderRegulation34(2)oftheSEBI(ListingObligationsandDisclosureRequirements)
Regulations, 2015, is given in Annexure-II and forms part of the Annual Report.33.0 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO PursuanttoSection134(3)(m)ofCompaniesAct,2013readwithRule8ofTheCompanies(Accounts)Rules,2014informationrelating
to‘Conversationofenergy,technologyabsorptionandforeignexchangeearningsandoutgo’,isgiveninAnnexure-III to this Report.34.0 RISK MANAGEMENT POLICY Information on Risk Management Framework is covered in the Management Discussion and Analysis Report attached as Annexure-I of
this Report.35.0 INTERNAL FINANCIAL CONTROLS AND ADEQUACY TheBoardhasadoptedpoliciesandproceduresforensuringtheorderlyandefficientconductofitsbusinesses,includingadherenceto
the Company’s policies, the safeguarding of its assets, the prevention and detection of frauds, error reporting mechanism, the accuracy andcompletenessoftheaccountingrecordsandthetimelypreparationofreliablefinancialdisclosures.
36.0 STATUTORY AUDITORS OF THE COMPANY TheStatutoryAuditorsofTheCompanyareappointedbytheComptroller&AuditorsGeneralofIndia.M/sS.K.Mittal&Co.,M/sR.G.
N.Price&Co.,M/sKothari&Co.andM/sParakh&Co.wereappointedasJointStatutoryAuditorsforthefinancialyear2018-19. TheStatutoryAuditorshavegivenanunqualifiedreport.Thereportisself-explanatoryanddoesnotrequireanyfurthercommentsbythe
Board.37.0 COMPTROLLER AND AUDITOR GENERAL’S COMMENTS Company has received ‘NIL comments on the accounts for the year ended March 31, 2019 by the Comptroller and Auditor General of India
under Section 143(6) of the Companies Act, 2013. Copy of the same is attached as Annexure - IV to this Report.38.0 SECRETARIAL AUDITOR KumarNareshSinha&Associates,PractisingCompanySecretaryhasconductedSecretarialAuditoftheCompanyforthefinancialyear
endedMarch31,2018.TheReportformspartofthisAnnualReport(Annexure-V). The Secretarial Auditor have reported that during the period under review, the Company has generally complied with the provisions of the
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Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above subject to the observation that: “ProvisionsofRegulation17(1)ofSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,
2015 and Para 3.1.4 of DPE Guidelines on Corporate Governance with regard to Composition of the Board of Directors have not been compliedwithduringthefinancialyearunderreview.”
Theexplanation,ontheobservationofSecretarialAuditors,isasunder: Your Company, being a Government Company within the meaning of Section 2(45) of Companies Act,2013, the power to appoint Directors
ontheBoardvestswiththeGovt.ofIndia.AgainsttherequirementofsevenIndependentDirectorsonyourCompany’sBoardduringtheyear,fiveIndependentDirectorswereontheBoard.Thus,theCompanyhasnotbeenabletocomplywithprovisionsofRegulation17(1)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andDPEGuidelinesonCorporateGovernancewithregardtoCompositionoftheBoardofDirectorsduringthefinancialyearunderreview.ThematterisbeingpursuedwiththeAdministrativeMinistryforfillingupofexistingvacanciesofIndependentDirectors.
39.0 COST AUDITORS OF THE COMPANY TheCompanyappointedM/sR.M.Bansal&Co.,CostAccountantsandM/sChandraWadhwa&Co.,CostAccountantsasCostAuditors
fortheFinancialYear2018-19underSection148oftheCompaniesAct,2013. TheCostAuditReportsfortheFY2018-19willbefiledwiththeCostAuditBranch,MinistryofCompanyAffairsbeforeduedate.40.0 EXTRACT OF ANNUAL RETURN InaccordancewithSection134(3)(a)oftheCompaniesAct,2013anextractoftheAnnualReturn,intheprescribedformatinMGT-9,
is given as Annexure VI of this Report.41.0 COMPANY’S BOARD ThecompositionofBoardofDirectorsunderwentsomechangesduringtheyear2018-19. ShriI.S.JhademittedtheofficeofChairman&ManagingDirectoron21stJanuary,2019,consequentonhisappointmentasMember,
CentralElectricityRegulatoryCommission.TheBoard,onitsbehalf&alltheemployeesoftheCompany,placedonrecordtheirdeepsenseof appreciation and gratitude for his valuable contribution and commitment to take the Company to new heights.
TheMinistryofPower,videOfficeOrderdt.21.01.2019,entrustedtheadditionalchargeofpostofChairman&ManagingDirector(CMD)toShriRaviP.Singh,Director(Personnel)forperiodofthreemonths.TheMinistryofPower,videOfficeOrderdt.13.06.2019,hasfurtherextendedtenureofShriRaviP.SinghasCMDforaperiodofsixmonthsw.e.f.21.04.2019ortilltheappointmentofaregularincumbent,or until further orders, whichever is the earliest.
Shri Prabhakar Singh, Director (Projects) also demitted the office on 30th June, 2018, upon attaining the age of superannuation.The Board acknowledges the contribution of Shri Prabhakar Singh in various roles he handled during his tenure. Mrs. Seema Gupta, Director(Operations)wasgiventheadditionalchargeofthepostofDirector(Projects)videOfficeOrderofMoPdt.09.07.2018foraperiodofthreemonths.ShriR.K.Chauhan,assumedthechargeofDirector(Projects)witheffectfrom23rdAugust,2018.
Ms.Bharati,JointSecretary,MoPceasedtobeGovt.NomineeDirectoron13.02.2019.ShriVivekKumarDewangan,JS&FA,MoP,whowasontheBoardoftheCompanysince26.04.2018ceasedtobeGovt.NomineeDirectoron07.06.2019.TheBoardplacesonrecorditsappreciationforthevaluablecontribution,guidance&supportgivenbyMs.BharatiandShriDewangan.
Shri Ghanshyam Prasad, Chief Engineer, Ministry of Power, was appointed as Govt. Nominee Director on 01.03.2019. Shri Sunil Kumar Sharma andMrs. A. R.Mahalakshmiwere appointed as IndependentDirectorsw.e.f. 23.07.2018 and 26.07.2018,
respectivelyvideMinistryofPowerOfficeOrderdt.17.07.2018. Shri J. I. Patel, Independent Director appointed w.e.f. 17.11.2015 for a period of three years vide GOI Order dated 17.11.2015. Shri Patel
was reappointed for further period of one year from the completion of his earlier tenure. Shri M. N. Venkatesan, appointed as an Independent Director w.e.f. 11.07.2019 for a period of three years vide GOI Order dated 11.07.2019 ShriAnuragAgarwal,AS&FA,MinistryofPower,appointedasaGovt.NomineeDirectorontheBoardofPOWERGRIDw.e.f.27.06.2019 ceased to be Director on 12.07.2019.
In accordance with the provisions of the Companies Act and the Articles of Association of the Company, the resolutions w.r.t. reappointment ofShriRaviP.Singh(DIN:05240974)asDirectorliabletoretirebyrotation;appointmentofShriRajeevKumarChauhan(DIN:02018931)asDirector;reappointmentofShriJagdishIshwarbhaiPatel(DIN:02291361)&appointmentofShriM.N.Venkatesan(DIN:02126022)as Independent Directors have been included in the Notice of Annual General Meeting.
42.0 NUMBER OF MEETINGS OF THE BOARD BoardofDirectorsmet13timesduringthefinancialyear2018-19.DetailsregardingdatesandattendanceoftheBoardmeetingsare
provided in the Report on Corporate Governance, which forms part of this Report.43.0 COMMITTEES OF THE BOARD The Company has Audit Committee, CSR Committee, Nomination and Remuneration Committee, Stakeholders’ Relationship Committee,
and some other Committees for operational convenience of the Company. The composition and scope of the aforesaid Committees are provided in the Report on Corporate Governance.
Report on the Corporate Governance (Annexure-VII),togetherwiththeCertificatethereon(Annexure-VIII) are attached to this Report.
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44.0 DECLARATION BY INDEPENDENT DIRECTORS Duringtheyear,alltheIndependentDirectorshavemettherequirementsspecifiedunderSection149(6)oftheCompaniesAct,2013
for holding the position of ‘Independent Director’ and necessary declaration from each Independent Director under Section 149 (7) was received.
45.0 PERFORMANCE EVALUATION OF DIRECTORS TheMinistryofCorporateAffairs(MCA)videNotificationdated5thJune,2015hasexemptedGovernmentCompaniesfromtheprovisions
ofSection178(2)oftheCompaniesAct,2013(theAct),whichprovidesformannerofevaluationofperformanceofBoard,itsCommitteesand Directors by Nomination and Remuneration Committee. The requirement of mentioning a statement on themanner of formalevaluation of performance of directors in Boards’ Report as per section 134(3) (p) of the Act has also been done away with for Government Companies, where the directors are evaluated by the Ministry or Department of the Central Government which is administratively in chargeofthecompany,asperitsownevaluationmethodology.Further,MCAvideitsnotificationdated05thJuly,2017hasmadeanamendmentintheScheduleIVoftheAct,wherebyithasexemptedGovernmentCompaniesfromcomplyingwiththerequirementofperformanceevaluationbytheIndependentDirectorsofnon-independentdirectorsandChairmanandperformanceevaluationoftheIndependentDirectorsbytheBoard,iftheconcerneddepartmentsorministrieshavespecifiedtheserequirements.
The Department of Public Enterprises (DPE) has laid down a mechanism for performance appraisal of all Functional Directors. DPE has also initiated evaluation of Independent Directors.
TheCompanyentersintoMemorandumofUnderstanding(MoU)withMinistryofPower(MoP)everyyearwhereinCompanyisevaluatedonvariousfinancialandnon-financialparameters.TheperformanceoftheCompany&BoardofDirectorsisevaluatedbytheDepartmentofPublicEnterprisesintermsofMoUenteredintowithMoP.
In termsofRegulation25of SEBI LODR, 2015, theperformanceof theBoard as awhole andnon-independent directors includingChairman&ManagingDirectorwereevaluatedbytheIndependentDirectorsinaseparateMeetingheldbythemon14thMarch,2019..
46.0 POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION TheCompanyhasframedapolicyontheremunerationoftheDirectors,KMPsandemployeesasrequiredundertheprovisionsofSection
178 of the Act. The said policy is available on our website at https://www.powergridindia.com/sites/default/files/Investor_Relation/Reports_Filings/Code_of_Conduct_Policies/04_Remuneration%20Policy.pdf
47.0 PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS Loans,GuaranteesorinvestmentsunderSection186oftheCompaniesAct,2013formpartoftheNotestoFinancialStatements(Note
No.58)providedinthisAnnualReport.48.0 PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES ParticularsofcontractsorarrangementswithrelatedpartiesreferredtoinSection188(1)oftheCompaniesAct,2013,intheprescribed
FormAOC-2,aregivenasAnnexure IXoftheDirectors’Report.Further,attentionofthemembersisdrawnonNoteNo.58oftheFinancial Statement which sets out related party disclosures.
49.0 SUBSIDIARIES AND JOINT VENTURES Ason31stMarch2018TheCompanyhas13subsidiariesand13JointVenturesCompanies. AstatementcontainingsalientfeaturesofthefinancialstatementsofourSubsidiariesandJointVenturesarecoveredintheManagement
DiscussionandAnalysisandalsoannexedintheprescribedformatAOC-1asAnnexure X.50.0 DIVIDEND DISTRIBUTION POLICY Asperregulation43AoftheSEBI(ListingObligationandDisclosureRequirements)Regulations,2015(theListingRegulations),thetop
500 listed companies shall formulate a dividend distribution policy. Accordingly the policy was adopted to set out the parameters and circumstancethatwillbetakenintoaccountbytheBoardindeterminingthedistributionofdividendtoitsshareholdersand/orretainedprofitsearnedbytheCompany.ThepolicyisalsoavailableontheCompany’swebsitehttps://www.powergridindia.com/sites/default/files/Dividend%20Distribution%20Policy.pdf
51.0 SIGNIFICANT MATERIAL ORDERS Therearenosignificantandmaterialorderspassedby theRegulatorsorCourtsor tribunal impacting thegoingconcernstatusand
Company’s operations in future.52.0 DIRECTORS’ RESPONSIBILITY STATEMENT Asrequiredu/s134(3)(c)&134(5)oftheCompaniesAct,2013,TheDirectorsconfirmthat: (a) inthepreparationoftheannualaccounts,theapplicableaccountingstandardshadbeenfollowedalongwithproperexplanation
relatingtomaterialdepartures; (b) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are
reasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearandoftheprofitoftheCompanyforthatperiod;
(c) theDirectorshadtakenproperandsufficientcare for themaintenanceofadequateaccountingrecords inaccordancewiththeprovisionsofthisActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;
(d) theDirectorshadpreparedtheannualaccountsonagoingconcernbasis; (e) theDirectorshadlaiddowninternalfinancialcontrolstobefollowedbytheCompanyandthatsuchinternalfinancialcontrolsare
adequateandwereoperatingeffectively;
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(f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequateandoperatingeffectively.
53.0 ACCOLADES & AWARDSDuringFY2018-19,theCompanyhasbeenconferredfollowingimportantawards/accolades: FastestGrowingElectricUtilityinAsia-forthefifthsuccessiveyearsince2014,basedonPlatts Top 250 Global Energy Company
Rankings.Globally,theCompanywaspositionedasthe3rdFastestGrowingElectricUtility; CBIP Award 2019forBestPerformingPowerTransmissionUtilityforitsoutstandingcontributiontothepowertransmissionsectorin
thecountry; CBIP Special Jury AwardforInnovationExcellenceinPowerTransmission; Platinum Prize (1st prize) in Power Sector Category at the 6th FICCI Quality Systems Excellence Award; One of the Top 25 Most Innovative Companies in India at the 5th CII Industrial Innovation Awards 2018–onlypowersectorCPSE
inthelist; Good Corporate Citizen Award category at PHD Annual Awards for Excellence 2018; Awards for Overall Best Overall Navratna, Best Navratna in Services and Electricity: Power Transmission categories at Dun & Bradstreet
PSU Awards 2018; 2018 EEI Asia-Oceania Index AwardatEEI(EdisonElectricInstitute)GlobalElectrificationForum,forHighestTotalShareholder
ReturnsinGoldLargeCapitalizationcategory; BML Munjal AwardforBusinessExcellencethroughLeadershipandDevelopmentfor2018inPSUServicescategory; Third Prize in Public Sector Enterprises category at the National Competition for Innovative Training Practices (2017-18) by
IndianSocietyforTraining&Development; India Concord Summit (ICS) 2018 PSU AwardforBestHRPracticesbyaPSU-Navratna; ET2GOOD rating at the second edition of ET2GOOD 4GOOD RatingsconferralceremonyforAll-RoundExcellenceinCSRfor2016-17
&2017-18; GoldCertificateforBestCSRPracticeattheHaryana CSR Summit 2018byGovt.ofHaryana; Gold Medal for Corporate Social Responsibility presented by the Hon’ble Governor of Telangana & Andhra Pradesh and President
of the Indian Red Cross Society; Best CEO AwardtoCMD,POWERGRIDinPSUcategoryatBusinessTodayBestCEOAwards FelicitationofCMD,POWERGRIDatthePSE Excellence Awards 2018byIndianChamberofCommerce; Mrs. Seema Gupta, Director (Operations) awarded Best Contribution Award at the ITOMS International Conference at Kuala Lampur,
Malaysia; WinnerinthePowercategoryatDun & Bradstreet Corporate Awards 2018 and in Power Transmission category at Dun & Bradstreet
Infra Awards 2018; Strategic Performance and Consistent Growth Award at the 6th PSU Awards by Governance Now.54.0 ACKNOWLEDGEMENTS TheBoardofDirectorswouldliketoexpresstheirdeepsenseofappreciationfortheguidanceandco-operationreceivedfromGovernment
ofIndia,particularlyMinistryofPower,MinistryofFinance,MinistryofHomeAffairs,MinistryofExternalAffairs,MinistryofStatisticsandProgrammeImplementation,MinistryofEnvironment,Forests&ClimateChange,MinistryofRailways,MinistryofCorporateAffairs,,Central Electricity Regulatory Commission, Appellate Tribunal for Electricity, Central Electricity Authority, NITI Aayog, Department of Public Enterprises,RegionalPowerCommittees,OfficeoftheComptrollerandAuditorgeneralofIndia,andotherconcernedGovt.departments/agencies/statutoryauthoritiesattheCentralandStatelevelwithoutwhoseactivesupport,theachievementsoftheCorporationduringthe year under review would not have been possible.
The Board also conveys its gratitude to your Company’s valued customers, State Governments and State power utilities and other clients, who have awarded various consulting works and reposed faith in Company’s capability to handle them. The Board also appreciates thecontributionofContractors,VendorsandConsultantsforthesupportandco-operationyourCompanyhasbeenreceivingtowardssuccessful implementation of various projects by the Company.
The Directors also acknowledge the valuable suggestions and guidance received from the Statutory Auditors during the audit of accounts of the Company for the year under review.
TheBoardalsoconveysitssincerethankstoNationalandInternationalfinancialinstitutions,multilateralFinancialInstitutions,domestic&internationalCreditratingagenciesfortheirassistance,continuedtrustandconfidencereposedintheCompany.
OnbehalfofBoardofDirectors,IwouldalsoliketothanktheExecutiveteamfortheirstrongleadership,theemployeeunionsfortheirsupportandouremployeesatalllevelsfortheircommitmentanddedicatedeffortswhichhaveenabledtheCompanytocontinuetobetheWorld’spremiertransmissionutility.
For and on behalf of the Board of Directors
(Ravi P.Singh) Director (Personnel) & CMD
DIN:05240974Place: New DelhiDate: 19th July, 2019
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ANNEXURE - I TO THE DIRECTORS’ REPORT
Management Discussion and Analysis1. Economic Outlook TheannualaverageGDPgrowth(%)dataof2014-18,asperWorldEconomicOutlook(April2019database)ofInternationalMonetary
Fund,exhibitsthatIndiahasemergedasthefastestgrowingmajoreconomyintheworld.IndiahasnowbecomethesixthlargesteconomyintheWorld.TheGDPofIndiahasgrownat6.8%during2018-19asagainstthe7.2%during2017-18.TheGDPgrowthfortheyear2019-20isprojectedat7%.Thisisagainsttheworld’sgrowthof3.6%during2018andprojectedgrowthof3.3%during2019.
2. Sectoral Outlook India’senergymixisdominatedbycoal(49.6%),followedbyoil(28%),biomass(11.6%),gas(7.3%),renewableandcleanenergy(2.2%)
andnuclearenergy(1.2%).However,theshareofelectricity,oneofthemostcriticalcomponentsofinfrastructureforeconomicgrowth,inenergymixin2014wasonly17%asagainst23%inOECDcountries.Thedevelopmentofadequateelectricityinfrastructureisessentialforsustainedgrowthofeconomyaswellasforenergysecurity.TheGovernmentofIndiahasidentifiedpowersectorasoneofthekeysectors of focus, so as to promote sustained industrial growth.
India’s installed capacity and its transmission infrastructure is amongst the largest in the world. However, for the distribution sector, which hasbeenhistoricallyplaguedbyvarioustechno-commercialissues,GovernmentofIndiahasundertakenanumberofpolicyandreformbasedinitiativeslikeSAUBHAGYA,Affordable24x7PowerforAll,IPDS,UDAY,UJALA,EnergyEfficiencyetc.forgrowthofthesector.
The country has been successively witnessing considerable growth in the sector, as listed hereunder:
FY14-15 FY17-18 FY18-19 Growth (1-year)
Growth (FY15-FY19) CAGR
GenerationTotalInstalledCapacity(incl.RE)GW 274.90 344.00 356.10 3.52% 6.68%RenewableCapacityGW 38.96 69.02 77.64 12.49% 18.81%TotalGeneration(incl.RE)BU 1110.07 1308.15 1376.10 5.19% 5.52%GenerationfromREsources(BU) 61.79 101.84 126.76 24.47% 19.68%TransmissionTransmission Lines (ckm) 313437 390970 413407 5.74% 7.17%Tranformation Capacity (MVA) 596100 826958 899663 8.79% 10.84%Inter-RegionalPowerTransferCapacity(MW) 46450 86450 99050 14.57% 20.84%Inter-RegionalPowerTransfer(BU) 84.37 150.05 181.74 21.13% 21.15%Power MarketsShort Term Transactions (Nos.) 38048 49900 51218 2.64% 7.71%ShortTermTransactions(EnergyTransacted)BU 80.87 104.63 120.97 15.62% 10.59%Power Supply PositionPeakDemandvsPeakMet(GW) 148.17/
141.16164.07/
160.75177.02/175.53
NA NA
EnergyDemandvsEnergyMet(BU) 1068.92/1030.79
1213.33/1204.70
1274.60/1267.53
NA NA
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NITIAayog’s‘StrategyforNewIndia@75’studyconsidersharnessingofREsources,whichareastrategicnationalresource,tobeapartofIndia’svisiontoachievesocialequityandenergytransitionwithenergysecurity,astrongereconomy,andclimatechangemitigation.
Inthisdirection,theGovt.isfollowingafocusedapproachtoincreasetheREcapacityinthecountryto175GWby2022andinthelongertimehorizon, it isalsocommittedtoachieveabout40percentcumulativeelectricpower installedcapacity fromnon-fossil fuelbasedenergyresourcesby2030,inlinewithitsIntendedNationallyDeterminedContributionassubmittedtotheUNFCCC.
Further,asperNationalElectricityPlan2018-basedon19thEPS,someoftheprojectionsforIndianPowerSectorareasfollows:
PeakDemandtoriseto226GWby2022andto299GWby2027
InstalledCapacitytoincreaseto479GWby2022and619GWby2027
EnergyRequirementtobe1,566BUin2022and2047BUin2027
Inter-RegionalPowerTransferCapacitytoincreaseto118,050MWby2022
ShareofREinInstalledCapacitytobe36.5%by2022and44.4%by2027
ShareofREinTotalGenerationtobe20.1%by2022and24.44%by2027
Also, the broad indicators of Draft Energy Policy, NITI Aayog (2017) also point towards a sustained growth for electricity sector in the country.
AnnualEnergyConsumptiontorisefrom670kgoein2015-16to1055-1184kgoein2040
Electricitysharetorisefrom17%ofTotalEnergyConsumptionin2014to26%oftotalenergydemandby2040
India’sElectricitySupplytoriseto4800BUby2040
RECapacityshareof~50-56%ofTotalInstalledCapacityby2040
REGenerationshare~29%-36%inoverallpowergenerationby2040
PerCapitaConsumptiontoincreaseto2911-2984unitsby2040
Immensepotentialforelectrificationofenergydemand–household,transportation,cooking,agricultureandindustry
Greateruseofelectricity-animportantsourceforde-carbonisation
3. Indian Transmission Sector
The inter-State transmission has seen considerable growth in the past decade,which led to the creation of a synchronousNationalGrid, ‘OneNation-OneGrid-OneFrequency’andhasbeenanenablerofpowermarkets inthecountry.Theinvestments in intra-Statetransmission sector are also picking up albeit slowly.
Thetransmissionrequirementsaresensitivetoloadgrowthandgenerationadditionsandthereforetheoverallemergingpowersectorscenario in India augurs well for transmission sector, which is a vital link in the power supply value chain.
All India installed capacity (in MW)
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All India capacity addition in transmission sector line in ‘000 ckm
4. OPPORTUNITIES AND THREATS/CHALLENGES
TheGovernmentofIndia,focusedonlongtermenergysecurityaswellaskick-startingthegrowthofeconomytowardsWorld’sThirdlargest economy, has been consistently addressing both supply and demand side issues through policy and reforms for ensuring sustained developmentoftheIndianPowerSector.GrowingpowerdemandasaresultofGovt’sfocusonimprovingthedistributionsector-thelastmileinpower;additionofREcapacity;additionofcapacitiesinconventionalgenerationsources;cross-borderlinkagesandadoptionofnew technologies to address challenges linked to RE integration are likely to be the growth drivers for power transmission in India.
Transmission:
(i) Inter-State Transmission driven by RE Integration
Inorder to increase theREcapacity fromthecurrent levelof78GWto theset targetof175GW in Indiaby2022,substantialcapacitiesinSolarandWindarerequiredtobetakenup.ThesecapacityadditionsarelikelytocomeupintheRErichstatesviz.Gujarat, Rajasthan and Tamil Nadu. Studies for integration of such RE capacities with the National Grid have been undertaken and transmissionrequirementsforabout66.5GWofnewREcapacityhasbeenassessedintwophases-29GWbyDecember,2020,and37.5GWbyDecember,2021.Asperthelatestestimates,thiscreatesanopportunityofmorethan`43,000croreininter-Statetransmission by December, 2021 of which works of about `11,400 crore have been allocated for taking up implementation, either throughPOWERGRIDorthroughthebiddingroute.
Further,Govt. of India is also planning to unlock the Solar potential in Leh-Ladakh region of J&K,which can create additionalopportunities for the sector.
To provide support to RE integration, the sector envisages new opportunities in creation of balancing infrastructure like STATCOMs, SVCs,BatteryStoragealso.However,themodalitiesforthesameareyettobefinalized.
(ii) Intra-State Transmission
GOI’sUjwalDISCOMAssuranceYojana(UDAY)schemehasresultedinimprovedfinancialpositionofvariousStateutilities.Improvedfinancials coupledwith anticipated demand aremakingway for the State utilities to undertake various intra-state transmissionprojects, thereby creating further investment opportunities.
(iii) Cross-Border Inter-connections
ThecrossborderpowertransferbyIndiawithneighboringcountriesistakingplacethroughinter-Governmentalbilateralcooperationwhichplansforcrossborderinterconnection,systemoperation,etc.India’svisiontohaveamulti-countrygrid(SAARC/BIMSTEC)for optimal utilization of resources in the region can be achieved through creation of additional and strengthening of existingcross-border interconnections.WhileNepal andBhutanareenvisaged tohave surpluspower in future,Bangladeshwouldbeanet importer trying to reduce itspowercostsbyreplacingexistingcostlypowerwithcheaperpower.Similarly, theGovt. isalsoengaging with Myanmar and Sri Lanka for interconnections. Further, “Guidelines on Cross Border Trade of Electricity” issued by Govt. of India envisage evolving a dynamic and robust electricity infrastructure for cross border transactions to meet the demand of the participating countries by utilizing the available resources in the region and having reliable grid operation and transmission of electricityacrosstheborders.Theseareexpectedtoprovidenewopportunities.
Upcoming/plannedprojectsandprojectsunderdiscussion/finalizationhavebeendiscussedintheDirectors’Report.
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(iv) Other emerging opportunities Govt.ofIndia’sthrustonseamlessandflexiblegridinterconnection,energysecurity,developmentofsmartcities,digitizationand
improvingfinancialhealthofDISCOMsarecreatingmorebusinessopportunitiesinthefieldofConsultancyandTelecomandalsonew business opportunities in the area of battery storage, distribution, smart grid and smart cities, advance metering infrastructure, railways etc.
5. Company’s Outlook (i) Transmission Your Company is one of the largest transmission companies in the world and India’s principal power transmission company, operating
primarilyininter-Statetransmissionsector.YourCompanyisalsoIndia’sCentralTransmissionUtility(CTU).Thesizeofthepowertransmissionnetwork (alongwith its subsidiariesacquired through tariffbasedcompetitivebidding)beingoperated/maintained,Telecom and consultancy business are discussed in the Director’s Report.
As brought out above, Indian power transmission sector has substantial growth opportunities, your Company being a major player inthesectorexpectstogarnerasubstantialportionofthebusinesspotential.
(ii) Telecom TheTelecombusinessiswitnessingmajorshiftinthemannerinwhichthebandwidthisconsumed-fromtelephonecallstodata.
Withthe launchof5G infutureandotherrequirements likedata localization,therequirementforbandwidthandothertelecomservicesofferstremendousopportunitiesforserviceproviders.YourCompanyisallgeareduptotapthisopportunityandhasbeencontinuouslyaugmentingitsall-Indianetworkbyaddingnewroutes,newlocationsandhasalsotakenstepsforestablishmentofseparate100GinternetnetworkwithSD-WANfacility.YourCompanyisalsoaddingnewserviceslikeMPLS-VPN,peeringwithcontentdeliverynetworks,drop&carrybroadcastingservicesetc.toincreasetheofferingbaskettoitscustomers.
InordertoincreaseyourCompany’stelecomservicesportfolioandtoprovideagreenandcleansolutiontobridgetheurban-ruraltelecomdivideinthecountry,ithasbeenexploringtheuseofitstransmissiontowersastelecomtowerswhilealsoprovidingpowerto theassociated telecomequipmentviz.mobileantennae,MWantennae,electronicequipmentetc. placedon the tower.YourCompanybelievesthatthetelecomplayers,withsuchcompositesolution,wouldbeabletooptimizetheircapexandopexandreducedependencyondieselgenerators.Subsequenttosuccessfulrunningofsuchtelecomtowerpilotsince2017andrecentapprovalfromthe regulator, CERC, your Company now intends to launch the business commercially in the coming year.
Consideringsynergieswiththeexistingpowerandtelecombusinesses,yourCompanyisalsostudyingDataCentresasabusinessopportunitytotaptheemergingrequirements.
(iii) Consultancy – Domestic & International Your Company is providing consultancy services in areas related to power transmission to its clients which include various departments
and agencies of the Government, CPSEs, state and private power utilities and the Indian Railways. Its completed works and pace of worksunderimplementationforsuchutilitieswillhelpitfurtherexpanditsconsultancybusinesswithinthecountry.
YourCompany,inlinewithitsstatedVision-tobeGlobalTransmissionCompanywithLeadershipinEmergingMarketsandaspartofGovt.ofIndia’sglobaloutreachaspirationsfromitsCPSEs,isalsoexploringglobalopportunitiesinpowertransmission.Basedon its past experience, yourCompany is continuously scouting for opportunities inAfrica, Asia,MiddleEast andCIS countries.Your Company has been providing Consultancy, Project Management and Asset Management Services to various clients and has footprints in 20 countries, spread across Asia, Africa, CIS countries and Asia-Pacific. The clientele includes state-owned powerutilities,multilateral fundingagencies likeWorldBank,ADB, IFCandGovt.of India.From itsearlierapproachof largely relyingon nomination based projects, your Company has now increased its participation in tendered out projects. A number of proposals submittedbyyourCompanyareexpectedtobefinalizedinFY2020.
Your Company’s performance and latest status of works under implementation has been discussed in the Directors’ Report. (iv) Other emerging opportunities YourCompanyhasbeenpreparing itself for suchnewemergingopportunities likeDistribution, EnergyEfficiency, SmartGrid&
Smart City, Grid Scale Battery Storage in the power sector and has been undertaking projects in these areas through Govt. of India’s Schemes(ruralelectrificationandIPDSinDistribution),specificassignmentsforpowerutilitiesandfromCPSEsinmanufacturing/processindustries(energyefficiency),consultancyassignmentsfromStates(SmartCity&SmartGrid),pilotprojects(SmartGrid,Grid Scale Battery Storage and eV charging infrastructure).
(v) Distribution Recently, your Company and NTPC have entered into an agreement for setting up, National Electricity Distribution Company Limited
(NEDCL) through a 50:50 joint venture to undertake electricity distribution business and related activities.
(vi) Energy Efficiency
YourCompanyisregularlyexploringopportunitiesintheareaofenergyefficiencyanddemandsidemanagement.Inthisregard,itintendstotakeupagriculturepumpreplacementprojectintheStateofUttarPradeshforwhichanMOUhasbeensignedwiththe
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StateGovernment.yourCompanyexpectstoexploresimilaropportunitieswithotherstatesandinstitutesalsointhecomingyear.
6. Major Constraints / Challenges / Threats faced in construction, operation & maintenance of Transmission systems and mitigation thereof:
ConservingRight-of-Way(RoW)throughforests,agriculturalland,urbanareas,industrialestablishmentsaswellasotherinfrastructure,upgradationoftransfercapacityoflinesmatchingwithpowertransferrequirement,landavailability&acquisitionforsubstationsaremajorareasofconcern indevelopmentoftransmissionnetwork intheCountry.Majorconstraints&concernsandyourCompany’sefforts indevelopment,operation&maintenanceofISTSare:
I. Challenges in Construction
a) RightofWay(RoW)constraints;
b) Difficultyinacquisitionofland,bothintermsofrequiredsize&location,forconstructionofSubstation;
c) Forestclearance;
d) Inadequateskilledmanpowerintransmissionlineconstructionactivitiesandintheareaofnewtechnologies.
II. Challenges in Operations and Maintenance
YourCompanyhasbeenmanagingitsvasttransmissionnetworkwhichisexpandingandgettingcomplexalongwithageingassets.Formaintaininghighleveloftransmissionsystemavailability,yourCompanyhasbeenaimingatimprovingoperationalefficiency.
III. Initiatives to address/ mitigate the above challenges / concerns
YourCompanyhasbeentakingvariousinitiativestoaddress/mitigatetheaboveconcernsthroughintroductionaswellasdeploymentof new technologies in the Indian power system, which are discussed herein below:
a) Addressing Right of Way (RoW) constraints:
Your Company has been adopting higher voltage levels, specially designed towers and new technologies to gradually increase the powercarryingcapacityoftransmissionlinestooptimizetheRoWrequirement.SomeofthetechnologicalinitiativestakenbyyourCompany are as under:
(i) Route alignment & detailed survey using modern techniques
Surveying isan importantaspectof transmission line for thepurposeofassessingRoWandoptimizingthecostof transmissionline based on selecting the shortest route, selection of optimum foundations based on type of terrain, areas prone to landslides, submergence,minimizingnumberofriver-crossingtowers,accessibility/approachabilityforconstructionaswellasfromlawandorderpointofview,etc.Alignmentsareconsideredkeepinginmindtheabove-mentionedfactorsduringsiteselection,withminoralterationsoftenaddedtoavoidenvironmentallysensitiveareasandsettlementsatexecutionstage.
YourCompanyhasbeenusingmoderntechniquesforroutealignmentviz.GIS/GPS,satelliteimagingetc.,whichhelpedindetailedmappingoftheright-of-way,groundprofilingalongwithgeographicaldetailsofthelocation,siteconstraints,etc.
(ii) Adoption of higher voltage for bulk power transfer
Withintroductionofhighercapacitytransmissionsystemslike765kVDoubleCircuittransmissionlines,±800kVHVDC,considerablereductioncouldbeachieved inRoWrequirementperMWofpowertransfere.g.FortransferofbulkpowertoSouthernRegion,another±800kV6000MWHVDClinkbetweenRaigarhtoPugalurisunderconstruction.Fortransferof2000MWpowertoKerala,Your Company is implementing ±320 kV HVDC VSC technology partly overhead using narrow based towers and partly underground with320kVDCXLPEcabletotakecareofRoWissues.
Towardsdevelopmentof1200kVUltraHighVoltage(UHV)ACtechnology,thehighesttransmissionvoltagelevelintheworld,yourCompanyhassuccessfullyestablisheda1200kVUHVACNationalTestStationatBinaandcommissioned1200kVsingleanddoublecircuittransmissionlinesectionsalongwithassociated1200kVbaysasapilotprojectusingindigenouslydevelopedequipment.Thepowerflowthrough1200kVNationalTestStationhascommencedsuccessfully.ThishasfacilitatedavailabilityofUHVclassequipmentinIndia.Long-termfieldoperationandtestsarebeingcarriedoutforperformancemonitoringof1200kVUHVACequipment.
(iii) Use of High Performance Conductors in existing & new lines
Highperformanceconductorsofdifferent configurationshaving thecapacity tocarrymorepowerwithin thesame transmissioncorridor does awaywith the need of creating newparallel corridors and helps in conservation of scarce land, RoWand forestresources,etc.Keepinginviewtheaforesaidadvantages,initiativeshavealreadybeentakenbyyourCompanyforre-conductoringofsomeoftheexistinglineswherepowerflowconstraintswereexperienced.YourCompanyhasusedtwinHTLSconductorsinsteadofquad/triplebundleACSRconductorsinmulti-circuitstretches.AsonMarch,2019reconductoringof400kVD/CMaithonRB-Maithonline,400kVD/CRangpo-NewSiliguritransmissionline&220kVPurnea-NorthPurnealineareunderimplementationinthisregard.
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(iv) Selection of appropriate type of towers
Properdesignandconstructionof transmission line towers isnotonly important for speedy implementationofprojects; safe&reliableoperationofpowersystembutalsoassumegreatsignificanceincostoftheprojectandconservationofRoW.Alargenumberoftowerdesigns,approximately200numbers,fordifferentwindzones,configurations,complexities&voltagelevelshavebeendevelopedin-house&successfullytestedbyyourCompanytowardsitsendeavortoaddressproblemindenselypopulatedurbanareas,conservationofforest&scarceRoW,etc.
b) Managing scarcity of land for construction of Substation
In order to reduce problems of land acquisition and related Rehabilitation & Resettlement and to reduce the substation landrequirement,yourCompanyhasconstantlyupgradedandimprovisedbyinvestinginnewtechnologieslikeGasInsulatedSubstations(GIS)whichrequiressubstantiallylesserlandareaincomparisontotheconventionalAirInsulatedsubstations(AIS).YourCompanyhadestablisheditsfirstGISSubstationin2007andpresentlymorethan40GISSubstationshavebeencommissioned.
Further,manysubstations,whereadditionalcapacities(bays)wererequiredtobecreated,yourCompanyusedhybridtechnology.AirInsulatedSubstationshavebeenextendedwithGasInsulatedSwitchgear.YourCompanyhastakenupimplementationofsuchschemes in Sundergarh, Muzzafarpur, Gaya, Gwalior, Malerkotla substations etc.
c) Obtaining Forest Clearances
Due to very lengthy and cumbersome process, obtaining forest clearance has been a big challenge for timely completion of projects. However, your Company’s concerted efforts andmany proactive decisions taken byMinistry of Environment, Forests&ClimateChange(MoEFCC)/Govt.ofIndiahaveresultedintosimplificationofforestclearanceprocesstoalargeextentparticularlyforlinearprojectsincludingtransmissionlines.Moreover,makingforestclearanceprocessonlineandtimeboundalsohelpedinexpeditingtheprocessbytheconcernedforestofficials.
d) Addressing issues of inadequate skilled manpower in construction activities, O&M and implementation of new technologies
For overall skill development in the Country, particularly in the area of Power Transmission Line Construction, Capacity Building Programmes are being conducted with the help of vendors of Transmission Line construction and more than 316 youths were trained duringFY2018-19.Cumulatively,about4332personshavebeentrainedupto31st March,2019.
IV Increasing operational & maintenance efficiency
Your Company is geared to consistently maintain the high standards of availability and reliability of its transmission system through latestmaintenancepracticesusingstate-ofthearttechnologies.Maintenanceactivitiesareplannedwellinadvanceandan‘AnnualMaintenance Plan’ is chalked out for every asset through live line or shutdown maintenance, as per technical feasibility.
The proactive approach of your Company in managing the maintenance and refurbishment of the transmission assets has minimized the tripping of lines especially due to fog, pollution and other natural causes. Your Company has also adopted the best of technological tools available for better operational performance and in this direction following latest technologies have been adopted by your Company:
(i) Software Tools for monitoring of Transformers and Reactors: Your Company has successfully developed software tool completely in-house forcentralizedreal timemonitoringof transformersandreactorsby integrating thesensors installed in thetransformersandreactorsforDissolvedGasAnalysis.Onlinemonitoringoftransformers/reactorsisaimedatdetectingearlystagesoffaults initiation and hence reducing sudden catastrophic failures of the same. The software tool is operational at National Transmission Asset Management Centre (NTAMC) and Regional Transmission Asset Management Centers (RTAMC).
(ii) Development and operationalization of Software based Transformer Health Indexing System:
Transformers are the most critical assets of the transmission system and are present in large nos. in your Company. Condition monitoringofthesecostlyequipmentisofprimeimportance.Towardsconditionassessmentofthetransformersinamoreefficientway,yourCompanyisnowdevelopingasoftwaretoolforhealthindexing.Thetoolwillbeutilizedforresiduallifeassessmentoftheequipmentatalaterdate.Thistoolwouldhelpinrankingofthefleetoftransformersbasedontheircondition,whichwillhelpintaking timely decisions for repair, refurbishment or replacement and thus investment planning.
(iii) Adoption of latest technology for better availability of transmission lines
• Aerial patrolling of transmission lines is being carried out by your Company using Helicopter equippedwith Gimbalmounted LIDAR (Light Detection and Ranging), Thermo-vision Camera, Corona Camera, high resolution video and digitalcamera to identify the defects.
YourCompanyhasdevelopedanApplicationforpatrollingoftransmissionlines.PatrollingoftowersanddefectsrectificationisbeingensuredthroughtheAPP.Thishelpsinupdatingofdataonrealtimebasiswhichresultsintoeffectivemonitoringofcritical locations.
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• Online fault locator
TravellingWaveonlinefaultlocatorhasbeenimplementedin25highcapacitylinesforaccurateestimationoffaultlocations.This has helped in reducing the downtime of transmission lines by identifying the faults in the shortest possible time.
• State-of-the-art condition monitoring techniques for substation equipment are being used for detection of defects at incipientstage.TheseincludeFrequencyResponseAnalysisforTransformersandReactors,variablefrequencycapacitanceandtan-deltameasurementforTransformer/ReactorbushingsandCurrentTransformer,DynamicContactResistanceMeasurementforCircuitBreakers,ThirdHarmonicResistiveCurrentmeasurementforSurgeArrestors,Thermo-visionscanningofsubstationequipment,etc.Thesetechniqueshaveprovedtobeveryusefulindetectionofdefectsatanearlystage.Preventive/correctiveactions were taken in advance and major failures were averted. In addition, periodic oil parameter checks, Dissolved Gas Analysis(DGA)ofTransformers/Reactors,particlecounts,inhibitorcontenttestareveryusefulfordiagnosisoftheproblemandlifeenhancementoftheTransformers/Reactors,whichyourCompanyhasimplementedsuccessfully.
• Implementation of Series Reactor: Increase in interconnectionsandconcentrationofGeneration/Loadshavecausedincreaseinshortcircuitlevel.Incertainareas,theseshortcircuitlevelsarereachingtothemaximumcapabilityofequipmentwhich is in operation and it is expected to go beyond the present capability in future. Your company has installed andcommissioned 4 numbers of Series Reactor at Ballabhgarh and Mandola substations in National Capital Region (NCR) area to takecareoftheexistingsubstations.Further,yourCompanyisprovidinghighcapabilityequipmentinallnewsubstations.
• Introduction of Resin Impregnated paper bushings: Your Company has introduced Resin Impregnated Paper (RIP) bushingshavingsuperiorcharacteristicsoverOilImpregnatedPaper(OIP)bushingstechnologyfor800kVTransformersandReactorsfortheirincreasedavailability.ThechancesoffirebreakingoutonRIPbushingsareminimalandcatastrophiceffectsofitsfailureonnearbyequipmentinswitchyardareverylittle.
• On line Transient monitoring systems are being introduced at 765kV and 400kV substations to monitor switching and lightningsurges.Thiswouldhelpinanalyzingconditionofthesubstationequipmentaswellasinvestigatingthecausesoffailures.
• Digital Substations: Gaining experience from the pilot projects on Process Bus technology at Bhiwadi substation andNeemranasubstation,yourCompanyhasinitiatedaprojectatMalerkotlasubstationforretrofittingconventionalprotectionandcontrol schemes with advanced automation systems. Also your Company is utilizing Process Bus technology on the upcoming 220/66kV GIS substation project at Chandigarh. The new scheme is expected to ease themaintenance, simplify troubleshooting and reduce restoration time in case of any eventuality besides reduction of footprint by replacing large amount of coppercableswithminimalfiberopticcables.
• YourCompanyhasinstalledanumberofStatic Synchronous Compensators (STATCOMs) in the 400kV grid to improve thegridreliabilityandstability.CompanyhascommissionedSTATCOMsatSolapur&GwaliorinWesternRegion,Lucknow&NalagarhinNorthernregionandRanchi,Jeypore&KishanganjinEasternRegion).TheseState-of-theartSTATCOMswouldenhance the reliability of the GRID and improve voltage stability limit.
Further, 03 numbers of STATCOMs in Southern region are at final stages of implementation and would be progressivelycommissioned. Further one Thyristor Controller Reactor (500 MVAR) in Kurukshera is also being implemented to improve the staticaswellasdynamicvoltageprofileofKurukshetraHVDCstation.
7. Revenue related Risks
The regulatory framework in India is evolving and regulatory changes, if any, could have an impact on our business, results of operationsandfinancialcondition.
Despitebestpossiblecoordinatedefforts,therecouldbemismatchinthecommissioningofgenerationunitsvis-à-vistheassociatedtransmission system due to delays in the materialization of some of the generation projects.
In fourth amendment to the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations,effective from06.04.2016, provision has been made to sign the implementation agreement with the generating companies and transmission licenseesimplementingtheupstream/downstreamnetworkundercostplustocoverthemismatch.CERCinitsTariffRegulations,2019hasstipulated themethodology for treatmentofmismatchwithgenerationand/orupstream/downstreamnetworkorwithISTS system being developed by other transmission licensees. In case the transmission asset is prevented from regular service due to mismatch in commissioning, your Company can approach CERC for approval of date of commercial operation and payment of transmission charges.
For projects being implemented under TBCB route, in case the transmission asset is prevented from regular service due to mismatch incommissioningofthedownstream/upstreamnetwork,thetariffisrecoverablefromthedefaultingAgency(ies)throughbilateralbilling.
TheCentralElectricityRegulatoryCommission(SharingofInter-StateTransmissionChargesandLosses)Regulations,2010whichcame intoeffect from01.07.2011,providesforcomputationofPointofConnection(PoC)chargesand lossesby introducingnew
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methodologyforsharingoftransmissioncharges.However,StatesnamelyBihar,Odisha,WestBengal,MaharashtraandJharkhandhadchallengedtheaforesaidsharingmethodologyinthecourtoflawandfinaldecisionisawaited.IntermsofinterimorderoftheDelhiHighCourt,alltheaboveStatesare,however,makingpaymentaspersaidRegulation.CERChasnotifiedthethirdamendmentto the said Sharing Regulations leading to change in sharing pattern.
RealizationofduesbyyourCompanyhasbeenfairlygoodinthepast,inspiteofthestressedfinancialconditionsoftheDISCOMSandIPPs.GOIintroducedmeasureslike‘UDAY’andotherreformstoimprovethefinancialconditionoftheDISCOMshaveassistedinrealizationofdues.Inaddition,yourCompanyhasapaymentsecuritymechanismwiththeStatePowerUtilitiesintheformofLettersofCredit(LC)backedbytheTri-PartiteAgreements(TPA).AspertheprovisionsoftheTPA,thecustomersarerequiredtoestablishLCcovering105%oftheaveragemonthlybillingofyourCompanyforlast12months.TheTPAwassignedamongstGovernmentofIndia(GoI),ReserveBankofIndiaandtheindividualStateGovernmentssubsequenttotheissuanceoftheOneTimeSettlementSchemeofStateElectricityBoardsduesduringFY2001-02bytheGoI,whichwasvalidtillOct.’2016.GoIhasapprovedtheextensionoftheseTPAsforafurtherperiodof10years.29States/UnionTerritorieshaveexecutedtheagreementsforextensionofTPAsandmatterisbeingpursuedwiththeremainingStates/UnionTerritories.TheTPAalsoprovidesthatifthereisanydefaultinpaymentofcurrentduesbyanyStateUtility,theoutstandingduesbeyond90dayscanbedeductedfromtheState’sRBIaccountandpaidtotheconcernedCPSU.ThereisalsoprovisionforregulationofpowerbyyourCompanyasperCERCregulationsincaseofnon-paymentofduesandnon-establishmentofLC;forterminationofTransmissionServiceAgreement(TSA)incaseofdefaultinestablishmentofLC and payment of transmission charges.
In respect of trade receivables from Telecom and Consultancy, customer credit risk is managed by regular monitoring of the outstanding receivablesandfollow-upwiththeconsumerforrealization.
Tariff Regulations, 2019
ThetransmissionchargesofyourCompany’sassetsareregulatedbyCentralElectricityRegulatoryCommissionandaredeterminedbytariffnormswhichareapplicableforaperiodof5years.CERCvidenotificationdated7thMarch,2019notifiedtheTariffRegulationsapplicablefortransmissionsystemincludingcommunicationsystemusedforinter-statetransmissionofelectricityfortheTariffBlock2019-24,whichiseffectivefrom01.04.2019andshallremaininforcetill31.03.2024.MajorchangesaffectingrevenueofyourCompanyundertheTariffRegulationsapplicableforTariffBlock2019-24areasunder:
(i) ReturnonEquity(RoE)tobechargedfromcustomershasbeenretainedasinpreviousblockandshallbeallowedtobecomputedatthebaserateof15.5%.AdditionalRoEonearlycommissioningofprojectelements(s)hasbeendispensedwith.ROEforAdditionalcapitalizationaftercut-offdate(i.e.,after3years)beyondoriginalscope(excludingAdditionalcapitalizationduetochangeinlaw)shallbecomputedonweightedaveragerateofinterestonactualloanportfolioofyourCompany;
(ii) Forprojectswhichhavecompletedusefullifeasonorafter01.04.2019,equityinexcessof30%shallnotbetakenintoaccountfortariffcomputation.FewProjectsofPOWERGRIDwherewehaveequitycomponentmorethan30%willgetimpacted.However,overthe5years,theimpactisnotverysignificant.
(iii) Latepaymentsurcharge@18%perannumapplicableafter45days.Receivablesreducedto45daysoftransmissionchargesforallowingInterestonWorkingCapital.;
(iv) Rebate@1.5%forpaymentsmadewithin5days(againstearlierprovisionof2%forpaymentsmadewithin2days);@1%rebateonpaymentsmadebetween5-30days.
(v) O&MnormsforCommunicationSystemintroducedas2%ofthecapitalcostsubjecttoactualsatthetimeoftruingup.
(vi) SecurityExpensesandCapitalSparesfortransmissionsystemshallbeallowedseparatelyafterprudencecheckbyCERCduringthetariffdeterminationprocess.
(vii) Availability of AC system to be worked out on monthly basis and that of HVDC on cumulative annual basis for all HVDC systems.
(viii) NormativeAvailability:ACSystem–98%,HVDC–95%(85%forfirst12monthsfornewHVDCsystem).AvailabilityforpurposeofIncentive:HVDCsystem–97.5%(increasefrom96%),ACSystem-98.5%,Noincentivepayableforavailabilitybeyond99.75%.
(ix) Provisionsrelatedtomismatchincommissioningofthetransmissionsystemshavebeenintroducedi.e.incaseofdelayattributableto transmission licensees.
8. Risk Management Framework TominimizetheuncertaintiesandcomplexitiesassociatedwithyourCompany’sbusinessoperationsandgrowthobjectives,anEnterprise
RiskManagement(ERM)frameworkhasbeen implemented.ERMisastructured,consistentandcontinuousprocessfor identification,assessment,monitoringandmanagementofrisks.Asperthisframework,thesignificantbusinessprocesses/risksaremonitoredandcontrolled through various Key Performance Indicators (KPIs).
YourcompanyhasdulyconstitutedaRiskManagementCommitteeanddesignatedaChiefRiskOfficer.ThesaidCommitteemeetsatregularintervalsandreviewsKPIsandmajorbusinessrisksandprovidescorrectivemeasurestoimprovebusinessprocessefficiencies,
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whereverrequired.TheERMapproachhashelpedyourCompanytoimprovestrategicdecisionsmakingwithintheOrganizationandalsoin better identifying risks and opportunities.
9. Internal Financial Control and Adequacy Your Company has a comprehensive internal control mechanism in place to verify the Accounting and Financial Management System,
adequacyofcontrols,materialchecks,financialproprietyaspectsandcomplianceimplementationmechanism.Theelaboratedguidelinesfor preparation of Accounts are followed consistently for uniform compliance.
InlinewiththeprovisionsofSection179readwithRule8oftheCompanies(MeetingsofBoardanditsPowers)Rules,2014theInternalAuditorswere appointed by the Board ofDirectors. Regular and exhaustive Internal Audit on half yearly basis is carried out by theexperiencedCost/CharteredAccountantFirmsincloseco-ordinationwithCompany’sownInternalAuditdepartmenttoensurethatallchecksandbalancesareinplaceandallinternalcontrols/systemsareinorder.TheCorporateInternalAuditDepartmentalsocarriesoutSystemAuditandManagementAudittoreassuretheeffectivenessofinternalcontrolmechanism.ThescopeoftheInternalAuditisderivedfrom the Internal Audit Plan approved by the Audit Committee.
TheAuditCommitteemeetsatregularintervals.Thesignificant/materialauditfindingsareplacedbeforetheAuditCommitteeforreview,discussionandsubsequentaction.
10. Integrated Management Policy: POWERGRID is committed to: • establishandmaintainanefficientandeffective“NationalGrid”withdueregardtotime,cost,technologyandvalueaddition, • sustainabledevelopmentthroughconservationofnaturalresourcesandadoptingenvironmentfriendlytechnologyonprinciplesof
Avoidance, Minimization and Mitigation, • ensuresafe,occupationalhazardfreeandhealthyworkenvironment, • tothesatisfactionofstakeholdersinallareasofitsactivitiesandshallendeavortoimprovecontinuallyitsmanagementsystemsand
practices in conformity to legal and regulatory provisions.
11. Financial Discussion and Analysis
Comparison of Fiscal 2019 to Fiscal 2018.
(` in Crore)
Particulars Fiscal 2019 Fiscal 2018Revenue from Operations 34,119.12 29,764.59Other Income 1,498.95 1,001.73Total 35,618.07 30,766.32
Total income during Fiscal 2019 was `35,618.07crore,whichrepresentedanincreaseof15.77%overthetotalincomeof`30,766.32 crore duringFiscal2018.DuringFiscal2019,transmissionandtransmission-relatedactivitiesconstituted92.21%ofourtotalincome,withthebalance coming from our consultancy, telecommunication business and other income.
12. Income
12.1. Revenue from Operations
(` in Crore)
Revenue from Operations Fiscal 2019 Fiscal 2018Revenue from transmission charges 32,844.94 28,495.82Consultancy-ProjectManagement&Supervision 610.93 662.18Revenue from telecom 663.25 606.59Total 34,119.12 29,764.59
Factors affecting your Company’s results of operations
• Tariff norms
OurchargesfortransmissioncustomersaregovernedbytariffnormsnotifiedbytheCERCpursuanttoCentralGovernmentTariffPolicyandlegislation.UndertheTariffRegulationsapplicableforTariffBlock2014-19,yourcompanyhasbeenpermittedtochargeitscustomers,thetransmissionchargesforrecoveryofannualfixedcost(“AFC”)consistingofvarioustariffcomponentssuchasReturnonEquity,InterestonOutstandingDebt,Depreciation,Operation&MaintenanceexpenditureandInterestonWorkingCapital.FY2018-19istheterminalyearfordeterminationoftariffforassetsofyourCompanyasperthenormsofTariffblock2014-19.TransmissionchargespayabletoyourCompanyfromFY2019-20till2023-24shallbedeterminedasperCERCTerms&ConditionsofTarifffor2019-24(TariffRegulations,2019)notifiedon7th March, 2019.
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TheReturnonEquityiscomputedonpre-taxbasisbygrossingupthebaserateofreturnonequityof15.5%attheeffectivetaxrateoftherespectivefinancialyear.AnadditionalReturnonEquity(ROE)of0.5%allowedforproject(s)completedwithinthetimelinesspecifiedundertheCERCTariffRegulationsforprojectsmorethan50kilometers.Similarly,ROEmaybereducedby1%forsuchperiod as may be decided by CERC, if any transmission system is declared under commercial operation without commissioning of data telemetry, communication system up to load dispatch centre or protection system.
Therepaymentofloancapitalforeachyearofthetariffperiod2014-19isdeemedtobeequaltothedepreciationallowedforthatyear.Despiteanymoratoriumperiodavailedbyyourcompany,therepaymentofloanisconsideredfortarifffromthefirstyearofcommercialoperationoftheprojectandshallbeequaltotheannualdepreciationallowed.
Forinterestonworkingcapital,theworkingcapitalamountiscalculatedas-(i)consistingofreceivablesequivalenttotwomonthsoftransmissioncharges;(ii)maintenancespares@15%ofoperationandmaintenanceexpensesand(iii)operation&maintenanceexpensesforonemonth.RateofinterestonworkingcapitalfortheyearisonnormativebasisandisequaltotheBaseRateplus350 basis points of State Bank of India (Bank Rate) as on 1.4.2014 or as on 1st April of the year in which the transmission system isdeclaredundercommercialoperationduringthetariffperiod2014-19,whicheverislater.
ForprojectsbeingimplementedunderTBCBroute,thetariffisnotoncostplusbasisandisdiscoveredthroughtariffbasedbiddingprocesswherein thesuccessfulbidderwouldbetheonewhohasquotedthe lowest levelizedtariff foraperiodof35years forestablishing transmission projects on a build, own, operate and maintain basis.
The sharing of transmission charges as determined by CERC for cost plus projects and as adopted by CERC for TBCB projects shall beasperCERC(SharingofTransmissionCharges&LossesinInterstateTransmissionSystem)Regulations,2010,whichcameintoforcefrom01.07.2011.YourCompany,asCTU,isperformingtheactivityofBilling,CollectionandDisbursement(BCD)onbehalfofall the ISTS licensees and also someofthenon-ISTSlicensees,whoselineshavebeencertifiedbyRPCstobeusedasdeemedISTS.
Certainexpensesandincome,allowedunderCERCRegulationsarerequiredtobereimbursed/passedontoBeneficiariesinfuture,aretobeaccountedintheStatementofProfitandLossaspertheprovisionsofIndAS114‘RegulatoryDeferralAccounts’.Suchexpensesandincome,totheextentrecoverable/payableaspartoftariffunderCERCRegulationsaretreatedasRegulatoryDeferralAssets/Liabilities.
• Foreign Exchange Rate Variation YourcompanyundertheTariffRegulationsforthetariffblock2014-19hasanoptiontohedgeforeignexchangeexposureinrespect
oftheinterestonforeigncurrencyloanandrepaymentofforeignloanacquiredforthetransmissionsystem,inpartorfullandrecoverthecostofhedgingofForeignExchangeRateVariation(FERV)correspondingtothenormativeforeigndebt,intherelevantyear.
Ifhedgingoftheforeignexchangeexposureisnotundertaken,theextrarupeeliabilitytowardsinterestpaymentandloanrepaymentcorresponding to the normative foreign currency loan in the relevant year is permissible, provided it is not attributable to the generating company or the transmission licensee or its suppliers or contractors.
FERVarisingduringtheconstructionperiodforsettlement/translationofmonetaryitems(otherthannon-currentloans)denominatedinforeigncurrencytotheextentrecoverable/payabletothebeneficiariesascapitalcostasperCERCTariffRegulationsareaccountedas Regulatory Deferral Account Balance.
Inrespectofforeigncurrencyborrowingsdrawnonareafter1stApril,2016,exchangedifferencesarisingfromforeigncurrencyborrowingstotheextentregardedasanadjustmenttointerestcostsaretreatedasborrowingcost.OtherexchangedifferencesarerecognizedintheStatementofProfit&LossAccount.
12.2 Revenue from other Services Your company also earns revenue from Consultancy (including project management and supervision services) and Telecommunication
business.Our consultancy incomemainly consists of fee for the execution of transmission- and communication system-relatedprojects on a turnkey basis and technical consulting assignments for Indian state utilities, joint venture companies and utilities in other countries. The income from Consultancy business against sale of services during the Fiscal 2019 was `610.93 crore as against `662.18 crore during the Fiscal 2018, a decrease of 7.74%. The consultancy revenuemoderated as a number of assignmentsincluding the prestigious and challenging 220kV Srinagar Leh Transmission System Project have been completed during the year.
Therevenuefromourtelecommunicationbusinessismainlyonaccountofleasingbandwidthofourfibre-opticlines.Theincomefrom Telecom Business during the Fiscal 2019 was `663.25 crore as against `606.59croreduringFiscal2018,anincreaseof9.34%.
12.3 Other Income Your company’s other income was `1,498.95croreduringFiscal2019,anincreaseof49.64%overtheotherincomeof`1,001.73
croreduringFiscal2018. TheotherincomeincreasedmainlyduetoincreaseininterestonloantoSubsidiariesanddividendincomefromSubsidiaries/Joint
Ventures. 13. Expenses Expenseshavebeencategorizedas(i)Employees’benefitsexpense(ii)FinanceCosts(iii)DepreciationandAmortizationexpense
(iv)Otherexpenses.
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Yourcompany’stotalexpenditurewas 24,129.09croreduringFiscal2019,anincreaseof17.72%overthetotalexpenditureof 20,496.70 croreduringFiscal2018.Thetotalexpenditureasapercentageoftotalincomewas67.74%duringFiscal2019comparedto66.62%duringFiscal2018.
13.1 Employees’ benefits expense Employees’benefitsexpensesincludesalariesandwages,PerformanceRelatedPay,allowances,benefits,contributionstoprovidentand
otherfundsandstaffwelfareexpenses. Employeebenefitexpensesincreasedby11.54%to`1,783.57croreduringFiscal2019from`1,599.09croreduringFiscal2018dueto
increase in Pay revision and capitalization of new transmission system during the year. 13.2 Finance Cost Financecostincreasedby19.77%to`9,091.42 crore during Fiscal 2019 from `7,590.66croreduringFiscal2018.Theincreasewasmainly
duetointerestonloansfromSecured/UnsecuredredeemableBondsandIndianBanks&FinancialInstitutionsfornewlycommissionedprojectsduringFiscal2019&Fiscal2018andinterestonloantosubsidiaries.
13.3 Depreciation and Amortisation Expenses
Your company’s depreciation and amortizationexpensesincreasedby12.20%to`10,200.67 crore during Fiscal 2019 from `9,091.25 crore duringFiscal2018.Theincreasewasmainlybecauseofthecommissioningofnewtransmissionassets.
ThedepreciationprovidedisrelatedtotransmissionbusinessonstraightlinemethodfollowingtheratesandmethodologynotifiedbytheCERCforthepurposeoftariff.
DepreciationonassetsoftelecomandconsultingbusinessisprovidedforonstraightlinemethodasperusefullifespecifiedinSchedule-IIoftheCompaniesAct,2013.ULDCassetscommissionedpriorto1stApril,2014aredepreciatedonstraightlinemethod@6.67%perannum.
13.4 Other Expenses
OtherexpensesprimarilyconsistcostofRepairandMaintenanceofBuildings,PlantandMachinery,PowerCharges,Securityexpenses,vehiclehiringcharges,travellingexpenses,CSRexpensesandFERV.Otherexpensesincreasedby37.81%to 3,053.43 crore during Fiscal 2019 from `2,215.70croreduringFiscal2018.Theincreaseinotherexpensesismainlyonaccountofincreaseinrepair&maintenancecostofPlant&machinery,provisionfordoubtfuldebts,CSRexpensesandFERV.
14. Profit before Tax & Regulatory Deferral Account Balances
Yourcompany’sProfitbeforeTax&RegulatoryDeferralAccountBalancesduringFiscal2019was`11,488.98crore,anincreaseof11.87%overourprofitbeforetax&RegulatoryDeferralAccountBalancesof`10,269.62croreduringFiscal2018.
14.1 Tax Expenses
TaxexpensesconsistofCurrenttaxandDeferredtax.
14.2 Current Tax
During Fiscal 2019, we provided for `2,489.43croreasagainst`2,169.01croreduringFiscal2018.TheincreaseinTaxexpenseisduetoincreaseinProfitbeforetax.
14.3 Deferred Tax
Provisionfordeferredtaxismadeinrespectoftimingdifferencemainlyonaccountofhigherdepreciationchargeavailableunderincometaxprovisions.
DuringFiscal,2019weprovidedDeferredTax`(3,465.87)croreasagainst`3,140.15croreduringFiscal2018.ThedecreaseindeferredtaxisduetorecognitionofMATcreditof`5,935.70croreduringFiscal,2019asitisprobablethatfutureeconomicbenefitwillflowtoyourCompanyintheformofavailabilityofsetoffagainstfutureincometaxliability.
Furthermatterregardingpresentationof“DeferredTaxAssetsagainstDeferredTaxliability”inBalanceSheetandStatementofProfit&LosswasreferredtoExpertAdvisoryCommittee(EAC)ofInstituteofCharteredAccountantsofIndia.AsperopinionreceivedduringFiscal,2019‘DeferredAssetsagainstDeferredLiability’whichwashithertonettedwithDeferredTaxLiabilityisclassifiedas‘RegulatoryDeferralAccountBalance’inBalanceSheetandStatementofProfit&LossAccount.
14.4 Net Movement in Regulatory Deferral Account Balances (Net of Tax)
NetmovementinRegulatoryDeferralAccountBalances-Income/(Expenses)netoftaxforFiscal2019stoodat`(2,526.87)croreasagainst`3,284.19croreduringFiscal2018.TheincreaseinexpensesagainstincomeisduetoimplementationofExpertAdvisoryCommittee(EAC)opinionasexplainedabove,MATcreditandRegulatoryDeferralAccountBalanceofForeigncurrencyfluctuationsandEmployeebenefitexpenses.
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15. Profit after Tax
Yourcompany’sProfitafterTaxduringFiscal2019was`9,938.55crore,anincreaseof20.55%overProfitafterTaxof`8,244.65croreduringFiscal2018.
16. Return on Net Worth
Yourcompany’sReturnonNetworthduringFiscal2019is16.84%incomparisonto15.15%duringFiscal2018.IncreaseinReturnonNetworthismainlyduetocapitalizationofnewassets,increaseofdividendfromsubsidiaries&JVsandreductionofTaxexpensesduringtheyear.
17. Financial ratios
Particulars FY 2018-19 FY 2017-18 % ChangesDebtors Turnover 8.25 8.68 -4.95Inventory Turnover 29.71 30.43 -2.36Interest Coverage Ratio 3.45 3.61 -4.43Current Ratio 0.56 0.46 21.74 DebtEquityRatio 71:29 71:29 0.00 OperatingProfitMargin(%)# 30.02 31.83 -5.69NetProfitMargin(%) 29.13 27.70 5.16
Note:#Operatingprofit=ProfitBeforeTax(excludingDeferredassetsfordeferredtaxliability)lessOtherIncome.
18. Other Comprehensive Income (Net of Tax)
Yourcompany’sothercomprehensiveincome(netoftax)duringFiscal2019was`(16.30) crore in comparison to `8.03croreduringFiscal2018.DecreaseinothercomprehensiveincomeisduetodecreaseinvalueofinvestmentinPTCIndiaLimitedsharesandincreaseinprovisionforcertainexpensesbasedonactuaryvaluation.
19. Credit Ratings
Your Company’s financial prudence is reflected in the strong credit rating accorded by ratings agencies. For details, refer Report onCorporate Governance.
20. Liquidity and Capital Resources
Yourcompanydependsonbothinternalandexternalsourcesofliquiditytoprovideworkingcapitalandtofundcapitalrequirements.AsatMarch31,2019,yourcompanyhadcashandcashequivalentsof`3,643.14 crore as against `1,516.21croreasatMarch31,2018.AsatMarch31,2019,yourCompanyhadundrawncashcreditfacilitiesofapproximately`300 crore (“cash credit”) towards our working capital facilities.
21. Cash Flows
Year ended March 31,2019 2018
Net cash from operating activities 23,148.92 21,880.78Net cash (used in) investment activities (18,648.45) (22,980.98)Net cash used in Financing activities (2,373.54) (612.02)Cashandcashequivalentsattheendoftheyear 3,643.14 1,516.21
21.1 Net Cash from Operating Activities
Your company’s net cash flows from operating activities are principally used to service long-term debt, for capital expenditures, forinvestments and for payment of dividend. The net cash from operating activities was `23,148.92croreduringFiscal2019asagainst`21,880.78croreduringFiscal2018.
21.2 Net Cash used in Investment Activities
Your company’s net cash used in investing activities during Fiscal 2019 was primarily reflected in expenditure on Property, Plant &Equipment andCapitalWork-in-Progress of`19,462.03 crore, Loans&Advances to Subsidiaries& Joint Ventures of`2,770.73 crore investment inSubsidiaries&JointVenturesof`1,166.44 crore and receipt of interest on deposits, bonds and loans to subsidiaries of `906.23 crore and receipt of grant of `3,684.53crore.TheCompany’snetcashusedininvestingactivitieswas`18,648.45croreduringFiscal 2019 as against `22,980.98croreduringFiscal2018.
` in crore
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21.3 Net Cash used in Financing Activities
During Fiscal 2019, your company raised `19,489.58croreofnewlongtermborrowings.TheseborrowingsincludedprincipallyRupeebonds and foreign currency borrowings. Your Company repaid `9,495.60croreof longtermborrowingsandpaid interestandfinancecharges of 10,266.04 crore. During the Fiscal 2019, your Company paid dividend of 4,514.87crorecomprisingfinaldividendof 1,464.85croreforFiscal2018andinterimdividendof`3,050.02 crore for Fiscal 2019.
22. Capital Expenditure
Yourcompany’scapitalexpenditureisprimarilyfortheinstallationofnewtransmissioncapacityandtheexpansionofexistingcapacity.OurcapitalexpenditureduringFiscal2019andFiscal2018,was`25,807croreand`25,791 crore, respectively which includes CAPEX for TBCB companies of `4,008Crore(PreviousYear`5,027 Crore).
23. Non-current Assets
Yourcompany’sNon-currentAssetswere 2,20,517.42 crore and 2,00,290.72croreasatMarch31,2019andMarch31,2018,respectively.Noncurrentassetshavebeencategorizedas(i)Property,Plant&Equipment;(ii)Capitalworkinprogress;(iii)otherintangibleassets;(iv)Intangibleassetsunderdevelopment.;(v)Investments;(vi)Loans;(vii)othernon-currentfinancialassetsand(viii)othernon-currentassets.
23.1 Property, Plant and Equipment
Property,Plant&Equipment(NetBlock)increasedto`1,62,266.88croreduringFiscal2019from`1,52,243.89croreduringFiscal2018an increaseby6.58%.Property,Plant&EquipmentmainlyconsistsofLand,Buildings,TransmissionLines,Substations,HVDC,ULDCEquipment,Furniture&Fixturesetc.
23.2 Capital work in progress
Your company’s capitalwork-in-progresswas`33,364.02 crore and `30261.17crore,asatMarch31,2019and2018, respectively,aincreaseof10.25%.Thecostofmaterialsconsumed,erectionchargesandotherexpensesincurredfortheimplementationofprojectsareshownonthebalancesheetascapitalwork-in-progress,pendingcapitalizationofthecompletedproject.Thechangeinthisamountisdue to capitalization of a number of transmission projects on commissioning of these projects and due to undertaking of new transmission projects.
23.3 Other Intangible assets
OtherIntangibleAssetsconsistofElectronicDataProcessingSoftware,RightofWay-AfforestationExpenses,Telecomlicenses.Thevalueof unamortized Intangible assets (Net) increased to `1,593.10 crore during Fiscal 2019 from `1,366.46 crore during Fiscal 2018, anincreaseby16.59%.
23.4 Intangible assets under development
Rightofway-afforestationexpensesandexpensesincurredfordevelopmentof1200kVTransmissionsystemareshownonthebalancesheet as Intangible assets under development. The value of Intangible assets under development was `214.06 crore and `45.95 crore as atMarch31,2019and2018,respectively,onaccountofcapitalizationofexpendituresonTransmissionProjectsduringFiscal2019.
23.5 Investments
Investmentshavebeenclassifiedintoquotedandun-quotedcategories.AsatMarch31,2019,thequotedandun-quotedinvestmentswere `88.14croreand`2668.39croreasagainst`104.88croreand`1503.36crore,respectivelyasatMarch31,2018.Investmentsunder‘Quoted’categoryareinvestmentsmadeinPTCLimitedcomputedatFairValue.InvestmentsUnder‘Unquoted’categoryduringFiscal2019consistequityinvestmentinjointventureandsubsidiarycompaniesmainlyatcost.MajorinvestmentsinJointventure&subsidiariesason31.03.2019 are:
Sl. No.
Name of the Subsidiary/Joint Venture Amount invested (` in crore)
Subsidiaries1 Power Grid NM Transmission Limited 264.002 Power Grid Vizag Transmission Limited 209.733 PowerGridUnchaharTransmissionLimited 12.964 Power Grid Kala Amb Transmission Limited 61.00 5 PowerGridWaroraTransmissionLimited 326.30 6 Power Grid Jabalpur Transmission Limited 173.157 Power Grid Parli Transmission Limited 228.50
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8 Power Grid Southern Interconnector Transmission System Limited 515.50Joint Ventures
9 Powerlinks Transmission Limited 229.32 10 Torrent Power Grid Limited 23.4011 Jaypee Power Grid Limited 78.0012 Parbati Koldam Transmission Company Limited 70.9413 Teestavalley Power Transmission Limited 105.5614 North East Transmission Company Limited 106.9615 National High Power Test Laboratory Private Limited 30.4016 Cross Border Power Transmission Company Limited. 12.6217 Bihar Grid Company Limited 171.6918 Power Transmission Company Nepal Limited 6.50
23.6 Loans ( Non Current)
TheLoanshavebeenclassifiedasLoanstoRelatedParties&LoanstoEmployees.AsatMarch31,2019,LoanstoRelatedPartiesandLoans to Employees were `10,526.96 crore and `182.03croreasagainst`8,113.20croreand`139.92 crore, respectively as at March 31,2018.TheincreaseinLoansfromFiscal2018toFiscal2019wasmainlyduetoincreaseinUnsecuredLoanstoSubsidiarieswhichareexecutingProjectsacquiredbyyourCompanythroughTariffBasedCompetitiveBidding(TBCB)route.
23.7 Other non-current financial assets
Yourcompany’sothernon-currentfinancialassetswas`4,548.37croreand`866.35croreasonMarch31,2019and2018,respectively.Othernon-currentfinancialassetmainlyconsistofRecoverablefromGOIfullyserviceBondandLeaseReceivables.CompanyhasissuedGOI fully service bonds amounting to `3,487.50croreduringFY2018-19forraisingofExtraBudgetaryRecovery(EBR)forGOIschemeofPowerSystemDevelopmentfundintermsofletterno.7/1/2018-OMdated21stJanuary,2019ofMinistryofPower,Govt.OfIndia(GOI)for meeting accrued liabilities for creation of Capital Assets. The repayment of principal and the interest payment on such bonds shall be met by GOI.
23.8 Other non-current assets
Your company’s other non-current assetswas`5,065.44 crore and `5,645.51 crore, as atMarch 31, 2019 and2018, respectively, adecreaseby10.27%.Othernon-currentassetsmainlycompriseofadvancesforCapitalExpenditure,deferredforeigncurrencyFluctuationAsset, advance recoverable in kind or for value to be received.
24. Current Assets
Your company’s Current Assets were `17,872.31croreand`12,300.20croreasatMarch31,2019andMarch31,2018, respectively.CurrentAssetshavebeencategorizedas(i)Inventories;(ii)Tradereceivables;(iii)Cash&CashEquivalents;(iv)BankBalancesotherthancashandcashequivalents(v)Loans(vi)othercurrentfinancialassets(vii)othercurrentassets.
24.1 Inventories
Inventories are valued at lower of the cost, determined on weighted average basis, and net realizable value. The inventories were `1,226.28croreasatMarch31,2019asagainst`1,038.45croreasatMarch31,2018.Ourinventoriesconsistscomponents,spares&other spare parts, loose tools, consumable stores and other items. The cost of inventories increased during Fiscal 2019 as compared with Fiscal2018,onaccountofyourcompanycontinuingtoexpandthetransmissionnetworkandcapitalizationofnewprojects.
24.2 Trade Receivables
Trade Receivables consist mainly of receivables relating to transmission services, and also receivables from consultancy services and telecomservices.OurTradeReceivablesasonMarch31,2019and2018were`4,628.74croreand`3,638.96crore,respectively.Tradereceivablesincreasedby27.20%duringFiscal2019ascomparedtoFiscal2018.
Substantially, all of our receivables are covered by letters of credit, following which we have no material debt collection problems. The averagecollectionperiodfortradereceivablesis44daysduringFiscal2019ascomparedto42daysduringFiscal2018.
24.3 Cash & Cash Equivalents
Cash and Cash Equivalents as on March 31, 2019 and 2018 were `3,643.14 crore and `1,516.21 crore, respectively. Cash & CashEquivalentsincreasedby140%duringFiscal2019ascomparedtoFiscal2018mainlyonaccountoftermdeposits(withmaturitylessthan 3 months) held in respect of consultancy clients and Others. As on March 31, 2019, `172.13 crore was in current account and non designated term deposits, which was available to your Company for general purpose.
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24.4 Bank Balances other than cash & cash equivalents
Bankandothercash&cashequivalentsasonMarch31,2019and2018were 688.90croreand 654.22 crore, respectively. Bank Balances otherthancash&cashequivalentsincreasedby5.30%duringFiscal2019ascomparedtoFiscal2018mainlyonaccountoftermdepositsin banks for consultancy clients and Others.
24.5 Loans
LoansasonMarch31,2019and2018were`416.87croreand`46.88crore,respectively.LoansduringFiscal2019ascomparedtoFiscal2018increasedmainlyonaccountofcurrentmaturitiesofLoanstoSubsidiariesandLoantoJointVentureCompanies.
24.6 Other current financial assets.
OthercurrentfinancialassetsasonMarch31,2019and2018were`6,853.20croreand`4,869.92crore,respectivelymainlyconsistingunbilledrevenue.Othercurrentfinancialassetsincreasedby40.73%duringFiscal2019ascomparedtoFiscal2018mainlyonaccountofincrease in unbilled revenue.
24.7 Other Current Assets
OurothercurrentassetsasatMarch31,2019and2018were`415.18croreand`535.56 crore respectively.
25. Indebtedness.
YourCompany reliesonbothRupeeand foreign currencydenominatedborrowings.A significantpartofCompany’sexternal fundinghasbeenthroughlong-termforeigncurrencyloansfrommultilateralagenciessuchastheWorldBankandtheAsianDevelopmentBank(guaranteedbyGOI).Followingtablesetsforth,bycurrency,ouroutstandingdebtanditsmaturityprofile(currencyconversionsareasof31st March, 2019):
(` in Crore)
Loan Name 2019-20 2020-21 2021-22 2022-23 Beyond 2022-23 TotalDomestic Bonds (1) 6,742.97 5,007.97 8,223.73 6,090.23 48,423.97 74,488.87Domestic Loans (2) 1,454.00 1,454. 00 1,454 .00 2,004.00 19,824.00 26,190.00Foreign Loans US$ 1,993.63 2,119.48 2,090.82 5,550.74 21,897.55 33,652.22 EUR 246.98 434.69 421.13 421.13 2,564.14 4,088.07SEK 297.73 297.73 206.08 206.08 875.68 1,883.30JPY 11.53 11.53 11.53 11.53 1,437.78 1,483.90TOTAL (3) 2,549.87 2,863.43 2,729.56 6,189.48 26,775.15 41,107.49GRAND TOTAL (1+2+3)
10,746.84 9,325.40 12,407.29 14,283.71 95,023.12 1,41,786.36
25.1 Long-term borrowings
Your company’s long-term borrowings (excluding current maturities) as at March 31, 2019 and 2018 were `1,31,039.51 crore and `1,22,420.32crore,respectively.Long-termborrowingsincludeamountsraisedfromourprivateplacementofbonds,termloansfrombanksandfinancialinstitutions.Duetotheincreasedinvestmentinnewprojectsduringthelastyear,ourborrowingshaveincreasedby7.04%.
25.2 Secured Loans
Our secured loans (excluding current maturities of long term loans) as at March 31, 2019 and 2018 were `1,05,223.31 crore and `1,06,965.71crore,respectively.Mostoftheseloanshavebeensecuredbyfloatingchargesonthemoveableandimmovablepropertiesof Your Company. The following table presents the secured debt as at 31st March, 2019:
Amount(` in crore)
% of totalsecured debt
Bonds denominated in Rupees 64,746.11 61.53Term Loans and Other Loans From Banks and Financial Institutions:Denominated in Foreign Currency 28,293.20 26.89Denominated in Rupees 12,184.00 11.58Total 1,05,223.31 100
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25.3 Unsecured Loans
Ourunsecuredloans(excludingcurrentmaturitiesasatMarch31,2019and2018were`25,816.20croreand`15,454.61crore respectively, whichconsistofdomesticbonds,foreigncurrencybonds,loansfromforeignfinancialinstitutions/BankssuchastheNatixis(FormerlyCredit National) in France, Japan International Cooperation Agency (Formerly Japan Bank for International Co-operation) in Japan,SkandinaviskaEnskildaBankenAB(publ.)inSwedenandABSvenskExportkredit,Sweden.
The following table presents our unsecured debt as at March 31, 2019:
Amount(` in crore)
% of totalunsecured debt
BondsdenominatedinForeignCurrency&DomesticBonds 6,470.40 25.06Term Loans, From Banks and Foreign Currency Loans:Denominated in Foreign Currency 6,793.80 26.32Denominated in Rupees 12,552.00 48.62Total 25,816.20 100
26. Advance Against Depreciation (AAD)
Advanceagainstdepreciation(AAD)wasacomponentoftariffthatwaspermittedtobechargedunderCERCregulationsfortheBlock2004-09,tocovershortfallinrespectofdepreciationinayearonassets,forrepaymentofdebts.AADwasdoneawaywithinthetariffblock2009-2014anddepreciationratewerereworked.Duetochangeinthesetariffnormsandthedepreciationratesw.e.f.1.04.2009,theoutstandingAADhasbeentaken to transmission incomeafter12years fromthedateofcommercialoperation to theextent thedepreciationchargedinrespectoftransmissionsystemismorethanthedepreciationrecoveryundertariff.Ason31stMarch,2019,AADhasdecreasedby12%from`1,504.09croreduringFiscal2018to`1,323.45 crore during Fiscal 2019.
27. Current liabilities
Your company’s current liabilities as at 31st March, 2019 were `32,114.14 crore (previous year `26,899.93crore).Thecurrentliabilitiesinclude(i)Borrowings,(ii)Tradepayables(iii)othercurrentfinancialliabilities(iv)othercurrentliabilities;(v)Provisionsand(vi)CurrentTaxliabilitiesatMarch31,2019were19.38%higherascomparedto31stMarch,2018.
27.1 Borrowings
Yourcompany’sShort-termBorrowingsarefromBanksandthroughissueofCommercialPaper.TheseBorrowingsasatMarch31,2019and2018were`4,300 crore and `1,000 crore, respectively.
27.2 Trade payables
Yourcompany’sTradepayablesasatMarch31,2019and2018were 364.11 crore and 240.34 crore respectively. Trade payables at March 31,2019were51.50%higherascomparedtoMarch31,2018.
27.3 Other Current Financial Liabilities
Yourcompany’sothercurrentfinancialliabilitiesasatMarch31,2019and2018were`22,886.18croreand`21,505.61 crore respectively. Othercurrentfinancialliabilitiesmainlyincludecurrentmaturitiesoflongtermborrowingsthroughsecured&unsecuredBonds,foreigncurrencyloans,duesforcapitalexpenditure,deposits/retentionmoneyfromcontractorsandothersetc.OthercurrentfinancialliabilitiesatMarch31,2019were6.42%higherascomparedtoMarch31,2018.
27.4 Other Current liabilities
YourCompany’sothercurrent liabilitiesasatMarch31,2019and2018were`3,863.26croreand`2,687.33crorerespectively.OthercurrentliabilitiesatMarch31,2019were43.76%arehigherascomparedtoMarch31,2018mainlyonaccountofadvancesfromcustomers.
27.5 Provisions
Your Company’s provisions for Employee Benefits etc. as on March 31,2019 and 2018 stood at `700.59 crore and `1,059.58 crorerespectively.
28. BUSINESS AND FINANCIAL REVIEW OF JOINT VENTURE COMPANIES and SUBSIDIARIES for FY 2018-19:
28.1. Joint Venture Companies:
I. Powerlinks Transmission Limited (POWERLINKS):
POWERGRIDandTataPowerCompanyLimitedaretheJointVenturePartners inthisJointVentureCompanyandhold49%and51%equity,respectively.YourCompanywasincorporatedtoundertaketheimplementationofTransmissionLinesassociatedwithTalaHEP,East-NorthinterconnectorandNorthernRegionTransmissionSystemfromSiliguriinWestBengalviaBihartoUttarPradeshandwasthefirstpublic-privatepartnershipinPowerTransmission.
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Ason31.03.2019,POWERLINKShasAuthorizedsharecapitalof 483.60croreandpaid-upcapitalofRs468.00crore.POWERGRID’ssharein the paid up capital is `229.32 crore.
POWERLINKShadprogressivelycommissionedtheprojectbyAugust,2006.POWERLINKShaspaiddividendamountingtoRs16.05crore(interim) and `18.35Crore(final)forFiscal2019.
Financial Highlights of the Company:(` in Crore)
Particulars Fiscal 2019 Fiscal 2018
POWERGRID’sinvestmentinEquity 229.32 229.32Gross Income 155.57 173.90ProfitafterTax 112.57 124.84Earning per Share* ` 2.41 2.66
*Face value per Share is `10 each.
II. Jaypee Powergrid Limited (JPL):
POWERGRIDandJaiprakashPowerVenturesLimitedaretheJointVenturePartnersinthisJointVentureCompanyandhold26%and74%equity,respectively.TheCompanywasincorporatedtoundertaketheimplementationoftransmissionsystemtoevacuatepowergeneratedby1000MWKarchamWangtooHydroElectricPowerProjectinKinnaurDistrictinHimachalPradesh,fromWangtootoAbdullapur.
As on 31.03.2019, JPL has Authorized share capital of `300croreandpaid-upcapitalof`300crore.POWERGRID’sshareinthepaidupcapital is `78crore.
The project was progressively commissioned in April, 2012. JPL has paid dividend amounting to `5.07 crore (interim) for Fiscal 2019.
Financial Highlights of the Company:
(` in Crore)Particulars Fiscal 2019 Fiscal 2018
POWERGRID’sinvestmentinequity 78.00 78.00Gross Income 164.85 168.73Profit/(loss)afterTax 63.02 67.17Earnings per Share* ` 2.10 2.24
*Face value per Share is `10/-each.
III. Torrent Powergrid Limited (TPL):
POWERGRIDandTorrentPowerLimitedaretheJointVenturePartners inthisJointVentureCompanyandhold26%and74%equity,respectively.TheCompanywasincorporatedtoundertaketheimplementationoftransmissionsystemassociatedwith1100MWGasBasedproject (Sugen) Generation Station of Torrent Power Ltd. (TPL) at Akhakhol in Surat District of Gujarat.
As on 31.03.2019, TPL has Authorized share capital of `125.00croreandpaid-upcapitalof`90.00crore.POWERGRID’sshareinthepaidup capital is `23.40 crore.
TheprojectwasprogressivelycommissionedinMarch,2011.TPLhaspaiddividendamountingtoRs3.28crore(interim)andrecommendedfinaldividendof`0.70 Crore for Fiscal 2019.
Financial Highlights of the Company:
(` in Crore)Particulars Fiscal 2019 Fiscal 2018
POWERGRID’sinvestmentinEquity 23.40 23.40Gross Income 49.43 66.74ProfitafterTax 19.14 39.73Earning per Share* ` 2.13 4.41
*Face value per Share is `10/-each.
IV. North East Transmission Company Ltd.(NETC):
POWERGRIDenteredintoaJointVentureAgreementwithONGCTripuraPowerProjectCompanyLtd.(OPTC),GovernmentofTripura,
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Manipur,Mizoram,AssamElectricityGridCorporationLtd,MeghalayaandNagalandforestablishmentofTransmissionLineof400kVD/CPalatana-SilcharBongaigoanTransmissionProjectassociatedwith726.6MWPalatanaGasbasePowerProjectinthestateofTripura.
As on 31.03.2019, NETC has Authorized capital of `600croreandpaid-upsharecapitalof`411.40crore.POWERGRID’sshareinthepaidup capital is `106.96 crore.
The project was progressively commissioned in February, 2015. NETCL has paid dividend amounting to Rs 5.35 crore (interim) and Rs 5.35 crore(final)forFiscal2019.
Financial Highlights of the Company
(` in Crore)
Particulars Fiscal 2019 Fiscal 2018
POWERGRID’sinvestmentinEquity 106.96 106.96Gross Income 341.07 353.20
ProfitafterTax 65.56 83.84Earning per Share* ` 1.59 2.04
*Face value per Share is `10/-each.
V. Parbati Koldam Transmission Company Limited (PKTCL)
POWERGRIDand RelianceEnergyLimited (REL)nowReliance InfrastructureLtdare the JointVenturePartners in this JointVentureCompanyandhold26%and74%equity,respectively.TheCompanywasincorporatedtoundertaketheimplementationoftransmissionlinesassociatedwithParbati-II(800MW)HEPandKoldam(800MW)HEP.
As on 31.03.2019, PKTCL has Authorized share capital of `331.00croreandpaid-upcapitalof`272.84crore.POWERGRID’sshareinthepaid up capital is `70.94 crore.
The Project commissioned progressively in Nov’2015. PKTCL has paid dividend amounting to Rs 10.64 crore for Fiscal 2019.
Financial Highlights of the Company:
VI. Teestavalley Power Transmission Limited (TPTL)
POWERGRIDandTeestaUrjaLtdaretheJointVenturePartnersinthisJointVentureCompanyandhold26%and74%equity,respectively.TheCompanywasincorporatedtoundertaketheimplementationoftransmissionlinesassociatedwith1200MWTeesta-IIIHydroElectricPowerProjecttoKishanganjsub-station.
As on 31.03.2019, TPTL has Authorized Share Capital of `500CroreandPaid-UpCapitalof`373.88Crore.POWERGRID’sshareinthepaidup capital was `105.56 Crore.
The Project commissioned progressively in Feb’2019.
Financial Highlights of the Company:
Particulars Fiscal 2019 Fiscal 2018
POWERGRID’s investment in Equity 70.94 70.94Gross Income 166.88 174.78Profit after Tax 49.23 27.18Earning per Share* ` 1.80 1.00
Particulars Fiscal 2019 Fiscal 2018
POWERGRID’s investment in Equity 105.56 94.28Gross Income 85.62 30.99Profit after Tax (1.19) (6.54)Earning per Share* ` (0.03) (0.18)
(`in crore)
(`in crore)
*Face value per Share is `10/-each.
*Face value per Share is `10/-each.
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VII. National High Power Test Laboratory Private Limited (NHPTL):
NHPTLisajointventureCompanyofNTPC,NHPC,POWERGRID,DVC&CPRIwithequalequityparticipationof20%each.ThemainaimoftheNHPTListoestablishanonlinehighpowershortcircuittestfacilityinthecountry.ThisFacilityisbeingestablishedforthefirsttimeinthecountryatBina(M.P.)toprovideafullrangeofshortcircuittestingfortheelectricalequipmentinconformancetoIndianandInternational Standards.
As on 31.03.2019, the Authorized share capital of the Company was `153 crore while paid up share capital was `152crore.POWERGRID’sshare in the paid up capital was `30.40 crore.
HighVoltageTransformer(HVTR)SectionofLaboratoryunderPhase-Iputundercommercialoperationwitheffectfrom1stJuly,17.ThePhase-IiscapableofcateringtherequirementofShortCircuitTestofElectricTransformerfrom50MVA,132kVClassto315MVA,400kVClass which is being enhanced upto 500 MVA, 400 kV class and 500 MVA, 765 kV class. Medium Voltage Transformer (MVTR) Section is underimplementation.Theprojecthasnooperatingprofit.
Particulars Fiscal 2019 Fiscal 2018
POWERGRID’s investment in Equity 171.68 156.24 Gross Income 290.67 210.73 Profit after Tax 24.63 25.92 Earning per Share* ` 0.71 0.82
(`in crore)
*Face value per Share is `10/-each.
VIII. Bihar Grid Company Limited (BGCL):
POWERGRIDenteredintoaShareholders’Agreementon29.12.2012withBiharStatePower(Holding)CompanyLimited{BSP(H)CL}forimplementationofIntra-StateTransmissionSystemintheStateofBiharon50:50equityparticipationbasis.
As on 31.03.2019, the authorized Share Capital of BGCL is `800CroreandthePaid-upCapitalisRs343.37Crore,POWERGRID’sshareinthe paid up capital was `171.68Crore.
The Company is implementing Bihar Transmission System Strengthening Schemes in Phase IV, Part I worth `2041 crore. The majority of Part-IProjectisundercommercialoperation.Further,PhaseIV,PartIIworksworth`1,688croreareunderimplementation.
Financial Highlights of the Company:
IX. Kalinga Bidyut Prasaran Nigam Private Limited (KBPNL):
POWERGRIDhasenteredintoaShareholders’Agreementon04.01.2013withOdishaPowerTransmissionCorporationLimited(OPTCL)forimplementationofIntraStateTransmissionSystemintheStateofOdishaonthebasisof50:50equityparticipation.NobusinesshasbeenundertakenbythisCompany.TheBoardofDirectorsofPOWERGRIDandOPTCLhadapprovedclosureoftheCompany.ThewindingupproceedingofM/sKBPNLhasalreadybeentakenupandNILAccountsforF.Y-2018-19hasbeenprepared.RequisiteformalitiesforclosureoftheCompanyunderfasttrackexitmodeareunderprocess.
X. RINL POWERGRID TLT Private Limited (RPTPL)
POWERGRIDandRINLhadformedajointventureCompany,“RINLPOWERGRIDTLTPrivateLimited(RPTPL)”,on50:50equityparticipationbasis,forsettingupaTransmissionLineTower(TLT)manufacturingplantatVisakhapatnamwithaviewtoexploittheemergingopportunityin transmission line tower manufacturing business. As on 31.03.2019, the JV Company has Authorized share capital of `50 crore and paid up share capital of `8.00crore.However,keepinginviewthebusinessscenariooftowermanufacturing,theBoardofDirectorsofPOWERGRIDaccordedin-PrincipleapprovalforclosureoftheCompany.RINLisseekingapprovalofMinistryofSteelforClosureofRPTPL.
XI. Cross Border Power Transmission Company Limited (CPTCL):
POWERGRIDenteredintoShareholders’Agreementon9thJuly,2012withIL&FSEnergyDevelopmentCompanyLimited(IEDCL),SJVNLimited(SJVN)&NepalElectricityAuthority(NEA)ofNepalandformedaJVCompanyunderthename“CrossBorderPowerTransmissionCompanyLtd”(CPTC)incorporatedinIndiaforimplementationofIndianportionviz.Muzaffarpur-Sursandsection(IndiaPortion)of400kVD/CMuzaffarpur-DhalkebarIndo-NepalCrossBordertransmissionline.TheShareholdingofPOWERGRID,SJVN,IEDCLandNEAinthesaidJVCompanyis26%,26%,38%and10%respectively.TheAuditedcostoftheIndiaPortionis`242.55 crore and the Project is being implementedwithdebt:equityas80:20.
As on 31.03.2019, CPTC has Authorized share capital of `75croreandpaid-upcapitalof`48.50crore.Atpresent,POWERGRIDequityis`12.61 crore. The India Portion is under commercial operation w.e.f. 19th February, 2016.
CPTChaspaiddividend(interim)of10%amountingto`1.26 crore for Fiscal 2019.
XII. Power Transmission Company Nepal Limited (PTCN):
POWERGRIDentered intoa “JointVenture cumSharePurchaseAgreement”on5thApril, 2014withNepalElectricityAuthority(NEA),HydroelectricityInvestment&DevelopmentCompanyLtd(HIDCL)ofNepalandIL&FSEnergyDevelopmentCompanyLtd(IEDCL),India
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II. POWERGRID VIZAG TRANSMISSION LIMITED
POWERGRIDVIZAGTransmissionCompanyLimited(PVTL)wasacquiredbyPOWERGRIDonAugust30,2013underTariffBasedCompetitiveBidding for establishing Transmission System for ‘System Strengthening in Southern Region for import of power from Eastern Region’ from REC Transmission Projects Company Limited (the Bid process Coordinator). The transmission system comprising Srikakulam-Vemagiri765kVD/Cline&Khammam–Nagarjunasar400kVD/CLinetraversesthroughthestatesofAndhraPradeshandTelengana.PVTLwasgranted transmission license by CERC in January, 2014.
Ason31.03.2019,PVTLhasanAuthorizedandPaidupShareCapitalof₹220crore&₹209.73crorerespectively.Theprojecthasbeencommissionedon1stFebruary,2017.PVTLhaspaiddividendamountingto₹27.89croreforFiscal2019.
III. POWERGRID UNCHAHAR TRANSMISSION LIMITED
POWERGRIDUnchaharTransmissionSystemLimited(PUTL)wasacquiredbyPOWERGRIDonMarch24,2014underTariffBasedCompetitivebiddingfromRECTransmissionProjectsCompanyLimited(theBidProcessCo-ordinator)forestablishmentofTransmissionSystemforATSofUnchaharTPS.Thetransmissionsystemcomprising400kVD/CtraversesthestateofUttarPradesh.TheCompanywasgrantedtransmission license by CERC in July, 2014.
Particulars FY2018-19 FY2017-18
Gross Income 16.14 0.38Profit after Tax (63.56) (83.14)
Particulars FY2018-19 FY2017-18
Gross Income 298.24 244.14Profit after Tax 100.16 77.67
(`in crore)
(`in crore)
and formed a JV Company under the Name “Power Transmission Company Nepal Ltd” (PTCN) incorporated in Nepal for implementation ofDhalkebar - Bhittamod 400 kV Transmission Line (Nepal Portion of 400 kVD/CDhalkebar -Muzaffarpur Indo-Nepal Cross Bordertransmission line.) The Shareholding ofNEA, POWERGRID,HIDCL and IEDCL in the said JVCompany is 50%, 26%, 14%and 10%respectively.TheAuditedcostoftheNepalPortionisINR.101croreandtheprojecthasbeenimplementedon70:30debt:equityratio.
Ason31.03.2019,PTCNhasAuthorized,issued&paid-upsharecapitalofNPR45crore.Atpresent,POWERGRIDequityisNPR11.70croreincluding1,30,000equitysharesofNPR100/-eachofBonusShares.Thelineisundercommercialoperationw.e.f.19thFebruary,2016.
TheDhalkebar-MuzaffarpurIndo-NepalCrossBorderTransmissionlineisbeingusedforTransmissionofpowerbetweenIndia&Nepal.
28.2 SUBSIDIARY COMPANIES:
I. POWERGRID NM TRANSMISSION LIMITED
POWERGRIDNMTransmissionCompanyLimited(PNMTL)wasacquiredbyPOWERGRIDonMarch29,2012underTariffBasedCompetitiveBiddingforestablishingTransmissionSystemassociatedwithIPPsofNagapattinam/CuddaloreArea(PackageA)fromPFCConsultingLtd(theBidProcessCo-coordinator).TheTransmissionSystemcomprising765kVD/Cand765kVS/CtraversesthestatesofTamilNaduandKarnataka. PNMTL was granted transmission license by CERC in June, 2013.
Ason31.03.2019,PNMTLhasanAuthorizedandPaidupShareCapitalof₹264croreeach.Theprojectelementshavebeenprogressivelycommissioned and the entire project has been commissioned on 26.01.2019.
Particulars Fiscal 2019 Fiscal 2018
POWERGRID’s investment in Equity 37.70 22.5 Gross Income 1935.67 1410.70 Profit after Tax 95.09 39.46 Earning per Share* ` 1.45 0.85
(`in crore)
*Face value per Share is `10/-each.
Energy Efficiency Services Limited (EESL):
POWERGRIDenteredintoaJointVentureAgreementwithNTPCLtd.,PowerFinanceCorporationLtd.andRuralElectrificationCorporationLtd.TheJVCompanyviz.EnergyEfficiencyServicesLimitedwillpromotemeasuresofEnergyefficiency,EnergyConservationandClimateChange and is carrying out business related to energy audit of Govt. buildings, consultancy assignments etc.
As on 31.03.2019, the Authorised Share Capital of EESL is `3500croreandPaid-upShareCapitalis`675.20crore.POWERGRID’sshareinthe paid up capital was `37.70crore(5.58%).
Financial Highlights of the Company:
Note: For the purpose of consolidation of Accounts, EESL has not been considered as a Joint Venture Company.
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Ason31.03.2019,PUTLhasanAuthorizedShareCapitalof₹14croreandPaid-upShareCapitalof₹12.96crore.
TheProjecthasbeencommissionedon23.09.2016.PUTLhaspaiddividend(interim)of15%amountingto₹1.94croreforFiscal2019.
IV. POWERGRID KALA AMB TRANSMISSION LIMITED
POWERGRIDKalaAmbTransmissionLimited (PKATL)wasacquiredbyPOWERGRIDonMay12,2014underTariffBasedCompetitivebiddingfromRECTransmissionProjectsCompanyLimited(theBidProcessCo-ordinator)forestablishmentofTransmissionSystemforNorthernRegionsystemStrengtheningScheme,NRSS-XXXI(Part-A).TheTransmissionSystemcomprising400/220kVGISsubstation,400kVD/CLILOandSeriesCompensationistotraversethestateofHimachalPradesh.TheCompanywasgrantedtransmissionlicensebyCERC in September, 2014.
Ason31.03.2019,PKATLhasanAuthorizedandPaid-upShareCapitalof₹61croreeach.Theprojecthasbeencommissionedon12.07.2017.
PKATLhaspaidinterimdividendof₹0.68perequityshareamountingto₹4.15CroreinDecember2018andsecondinterimdividendof₹0.80perequityshareamountingto₹4.88CroreinMarch2019.Thus,theaggregateinterimdividendpayoutfortheFiscal2019amountsto₹9.03crore.
V. POWERGRID JABALPUR TRANSMISSION LIMITED
POWERGRIDJabalpurTransmissionLimited(PJTL)wasacquiredbyPOWERGRIDonFebruary26,2015underTariffBasedCompetitivebidding from REC Transmission Projects Company Limited (the Bid Process Co-ordinator) for establishment of Transmission SystemStrengthening associatedwith Vindhyachal-V. The transmission system comprising 765kVD/C transmission line traverse the State ofMadhya Pradesh. The Company was granted transmission license by CERC in June, 2015.
Ason31.03.2019,PJTLhasAuthorizedShareCapitalof₹300croreandPaidupShareCapitalof₹173.15crore.
The project had been completed and declared for commercial operation w.e.f. 01.01.2019.
Particulars FY2018-19 FY2017-18
Gross Income 23.47 16.34Profit after Tax 9.81 9.05
Particulars FY2018-19 FY2017-18
Gross Income 60.30 37.77ProfitafterTax 13.08 7.52
(`in crore)
(`in crore)
VI. POWERGRID WARORA TRANSMISSION LIMITED
POWERGRIDWaroraTransmissionLimited(PWTL)wasacquiredbyPOWERGRIDonApril24,2015underTariffBasedCompetitivebiddingfromRECTransmissionProjectsCompanyLimited(theBidProcessCo-ordinator) forestablishmentofTransmissionSystemAssociatedwithGadarwaraSTPS(2x800MW)ofNTPC(Part-A).ThetransmissionsystemtraversesthroughtheStatesofMaharashtraandMadhyaPradeshandcomprises765kVD/C,400kVD/Ctransmissionlinesandestablishmentof2X1500MVA765/400kVnewsubstationinWarora.The Company was granted transmission license by CERC in August, 2015.
Ason31.03.2019,PWTLhasanAuthorizedShareCapitalof₹425croreandPaidupShareCapitalof₹326.30crore.
Theprojectelementshavebeenprogressivelycommissionedandtheentireprojecthasbeencommissionedon10.07.2018.
PWTLhaspaidinterimdividendof₹0.65perequityshareamountingto₹15.75CroreinDecember2018andsecondinterimdividendof₹0.06perequityshareamountingto₹1.96CroreinMarch2019.Thus,theaggregateinterimdividendpayoutfortheFiscal2019amountsto₹17.71crore.
Particulars FY2018-19 FY2017-18
Gross Income 61.05 -ProfitafterTax 10.15 -
Particulars FY2018-19 FY 2017-18
Gross Income 280.62 63.70ProfitafterTax 59.67 28.94
(`in crore)
(`in crore)
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VII. POWERGRID PARLI TRANSMISSION LIMITED
POWERGRIDParliTransmissionLimited(PPTL)wasacquiredbyPOWERGRIDonApril24,2015underTariffBasedCompetitivebiddingfromRECTransmissionProjectsCompanyLimited(theBidProcessCo-ordinator) forestablishmentofTransmissionSystemAssociatedwithGadarwaraSTPS(2x800MW)ofNTPC(Part-B).ThetransmissionsystemtraversesthroughtheStateofMaharashtraandcomprises765kVD/C,400kVD/Ctransmissionlinesandestablishmentof2X1500MVA765/400kVnewsubstationinParli.TheCompanywasgrantedtransmission license by CERC in July, 2015.
Ason31.03.2019,PPTLhasanAuthorizedShareCapitalof₹350croreandPaid-upShareCapitalof₹228.50crore.
Theprojectelementshavebeenprogressivelycommissionedandtheentireprojecthasbeencommissionedon04.06.2018.
PPTLhaspaidinterimdividendof₹0.90perequityshareamountingto₹12.47CroreinDecember2018andsecondinterimdividendof₹0.15perequityshareamountingto₹3.43CroreinMarch2019.Thus,theaggregateinterimdividendpayoutfortheFiscal2019amountsto₹15.90crore.
VIII. POWERGRID SOUTHERN INTERCONNECTOR TRANSMISSION SYSTEM LIMITED
POWERGRIDSouthernInterconnectorTransmissionSystemLimited(PSITSL)wasacquiredbyPOWERGRIDonDecember4,2015underTarrifbasedCompetitivebiddingfromRECTransmissionProjectsCompanyLimited(theBidProcessCo-ordinator)for“StrengtheningofTransmission System Beyond Vemagiri’ Project on build, own operate and maintain (BOOM) basis. The transmission project comprising of 765kV&400kV,D/CtransmissionlinesistotraversethestatesofAndhraPradesh,Telangana&Karnatakaandincludeestablishmentofone765/400kVSubstationaswellas400kVbayextensionattwoexistingsub-stationsinthestateofAndhraPradesh.TheCompanywasgranted transmission license by CERC in March, 2016.
Ason31.03.2019,PSITSLhasanAuthorizedShareCapitalof₹675croreandPaidupShareCapitalof₹515.504crore.Twoelementsoftheprojectshavebeencommissionedon06.08.2018and28.02.2019.Theremainingelementsareunderimplementation.
IX. POWERGRID MEDINIPUR – JEERAT TRANSMISSION LIMITED
POWERGRIDMedinipur-JeeratTransmissionLimited(PMJTL)(wasacquiredbyPOWERGRIDonMarch28,2017underTariffbasedcompetitivebidding from PFC Consulting Limited (the Bid Process Coordinator) for Transmission System associated with “765kV Strengthening in EasternRegion(ERSS-XVIII).TheTransmissionSystemincludesestablishmentof765kVand400kVTransmissionlineswhichistotraversethestatesofWestBengalandJharkhandincludingestablishmentoftwonew765/400kVSubstationsinWestBengal.TheCompanywasgranted transmission license by CERC in June, 2017.
Ason31.03.2019,PMJTLhasanAuthorizedShareCapitalof₹1.00croreandPaidupShareCapitalof₹0.01crore.TheProjectisunderimplementation.
X. POWERGRID MITHILANCHAL TRANSMISSION LIMITED
POWERGRIDMithilanchalTransmissionLimited(PMTL),formerlyknownasERSSXXITransmissionLimited,wasacquiredbyPOWERGRIDonJanuary12,2018underTariffbasedcompetitivebiddingfromRECTransmissionProjectsCompanyLimited(theBidProcessCoordinator)forTransmissionSystemassociatedwith“EstablishTransmissionSystemforEasternRegionStrengtheningScheme–XXI(ERSS-XXI)”.The Transmission System includes establishment of 400kV Transmission lines in the state of Bihar including establishment of three new 400/220/132kVSubstationsinBihar.TheCompanywasgrantedtransmissionlicensebyCERCinApril,2018.
Ason31.03.2019,PMTLhasanAuthorizedandPaidupShareCapitalof₹5Lakheach.TheProjectisunderimplementation.
XI. POWERGRID VARANASI TRANSMISSION SYSTEM LIMITED
POWERGRIDVaranasiTransmissionSystemLimited (PVTSL), formerly knownasWR-NRPowerTransmissionLimitedwasacquiredbyPOWERGRID on March 27, 2018 under Tariff Based Competitive Bidding from REC Transmission Projects Company Limited (the BidProcessCo-ordinator)forestablishingTransmissionSystemfornewWesternRegion–NorthernRegion765kVInterRegionalCorridor.TheTransmissionSystemincludesestablishmentofa765kVD/CTransmissionLinefromVindhyachalpoolingstationtoVaranasiandtraversesthestatesofMadhyaPradeshandUttarPradesh.TheCompanywasgrantedtransmissionlicensebyCERCinAugust,2018.
Ason31.03.2019,PVTSLhasAuthorizedandPaidupShareCapitalof₹5Lakheach.TheProjectisunderimplementation.
Particulars FY2018-19 FY 2017-18
Gross Income 283.92 -ProfitafterTax 65.01 -
Particulars FY2018-19 FY2017-18
Gross Income 33.15 -ProfitafterTax (1.56) -
(`in crore)
(`in crore)
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FY 2018-19 FY 2017-18
Total Income 35,661.32 30,430.54ProfitbeforeTax&RegulatoryDeferralAccountBalances 11,674.04 10,186.56ProfitafterTax 10,033.52 8,204.00Net Cash from operating activities 23,380.67 22,710.12
(`in crore)
XII. POWERGRID JAWAHARPUR FIROZABAD TRANSMISSION LIMITED
POWERGRIDJawaharpurFirozabadTransmissionLimited(PJFTL)(formerlyknownasJawaharpurFirozabadTransmissionLimited)wasacquiredbyPOWERGRIDonDecember21,2018underTariffbasedcompetitivebiddingfromRECTransmissionProjectsCompanyLimited(the Bid Process Coordinator) for establishing Transmission System for Evacuation of Power from 2 X 660 MV Jawaharpur Thermal Power Project and Construction of 400 kV Substation at Firozabad along with associated Transmission Lines and is an Intra State Transmission Project.
Ason31.03.2019,PJFTLhasanAuthorizedandPaidupShareCapitalof₹5Lakheach.ApplicationforobtainingtransmissionlicensehasbeenfiledtoUPERC.
XIII. POWERGRID VEMAGIRI TRANSMISSION LIMITED
POWERGRIDVemagiriTransmissionLimitedwasacquiredbyPOWERGRIDonApril18,2012underTariffBasedCompetitivebiddingforestablishing Transmission system associated with IPPs of Vemagiri Area (Package A) from REC Transmission Projects Company Limited (the BidProcessCo-ordinator).Thetransmissionsystemcomprising765kVD/ClineswastotraversethestateofAndhraPradeshandTelangana.
Ason31.03.2019,POWERGRIDVemagiriTransmissionLimitedhasanAuthorizedShareCapitalandPaidupShareCapitalof₹5Lakheach.
CERCvideOrderdated06.04.2015statedthatVemagiri-Khammam-Hyderabad765kVD/Clinesundertheprojectisneitherrequiredasan evacuation line nor as a system strengthening line, no useful purpose will be served by adopting the transmission charges and granting license to the petitioner for the said transmission line and has withdrawn the regulatory approval for the Transmission project.
GRID CONDUCTORS LIMITED
GridConductorsLimited(GCL),awhollyownedsubsidiaryofPOWERGRIDincorporatedon15.09.2015tosetupanaluminumconductormanufacturing plant at Angul, Odisha. The Company did not carry out any business activity since incorporation and an application to strikeoffthenameoftheCompanythroughFastTrackExitSchemewasfiledwithRegistrarofCompanies(ROC).ROCvideNoticedated09.08.2018hasstruckoffthenamefromitsrecords.
29. Consolidated financial statements of POWERGRID
TheconsolidatedfinancialstatementshavebeenpreparedinaccordancewithIndianAccountingStandards(IndAS)110-‘ConsolidatedFinancialStatements’andIndianAccountingStandards(IndAS)28–‘InvestmentsinAssociatesandJointVentures’.Onconsolidatedbasis,theTotalIncomeoftheCompany,duringF.Y.2018-19,stoodat`35,661.32 crore against `30,430.54croreduringF.Y.2017-18registeringanincreaseofabout17.19%.TotalExpensesason31.03.2019stoodat`24,116.10 crore as against `20,391.92croreason31.03.2018.ProfitafterTaxduringFY2018-19increasedby22.30%vis-a-visFY2017-18.Abriefsummaryoftheresultsonaconsolidatedbasisisgiven below:
30. Cautionary Statement
Statement in the Management Discussion and Analysis and Directors Report describing Your Company’s objectives, projections and estimates are forward looking statements and progressive within the meaning of applicable laws and regulations. Actual results may vary from thoseexpressedor implied,dependinguponeconomic conditionsGovernmentPoliciesandother incidental factors.Readersarecautioned not to place undue reliance on the forward looking statements.
For and on behalf of the Board of Directors
(Ravi P.Singh) Director (Personnel) & CMD
DIN:05240974Place: New DelhiDate: 19th July, 2019
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ANNEXURE II TO THE DIRECTORS’ REPORT
Business Responsibility ReportSection A: General Information about the Company
Section B: Financial Details of the Company
Section C: Other Details1. Does the Company have any Subsidiary Company/ Companies? As on March 31, 2019, POWERGRID had thirteen wholly owned subsidiary Companies viz. POWERGRID NM Transmission Limited,
POWERGRID Vemagiri Transmission Limited, POWERGRID Vizag Transmission Limited, POWERGRID Unchahar Transmission Limited,POWERGRIDKalaAmbTransmissionLimited,POWERGRIDJabalpurTransmissionLimited,POWERGRIDWaroraTransmissionLimited,POWERGRID Parli Transmission Limited, POWERGRID Southern Interconnector Transmission System Limited, POWERGRIDMedinipur
1 Corporate Identity Number (CIN) of the Company L40101DL1989GOI038121
2 Name of the Company Power Grid Corporation of India Ltd
3 Registered address B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi-110016
4 Website www.powergridindia.com
5 E-mailid sustainability.report@powergrid.co.in
6 Financial Year reported 2018-19
7 Sector(s) that the Company is engaged in (industrial activitycode-wise) Sector(s) ITC Code No.
Inter State Transmission System (ISTS), Central TransmissionUtility(CTU)ofcountry
99691110
Telecom 99841100Consultancy&ProjectManagement 99833244
8 Listthreekeyproducts/servicesthattheCompanymanufactures/provides(asinbalancesheet)
i) Transmissionii) Telecomiii)ConsultancyServices(Domestic/International)
9 Total number of locations where business activity is undertaken by the Companyi) Number of International Locations (Provide details
of major 5)ii) Number of National Locations
(i) International: POWERGRID is providing Consultancy services inall facets of Transmission System. POWERGRID is having footprintsin Twenty Countries. Major five countries include Nepal, Bhutan,Bangladesh,FijiandCASA(KyrgyzRepublic,Tajikistan,Afghanistan&Pakistan).
(ii) National: Total 256 which includes 245 sub-stations (includingsubsidiaries), 10 Regional headquarters and 1 corporate office atGurgaon. Telecom department has its points of presence in more than 680 locations spreadacross the country.Apart fromabove, a no. ofsubstations and transmission lines are presently under construction and personnel are located on various site(s).
10 MarketsservedbytheCompany-Local/State/National/International/
POWERGRIDhasfootprintinallthemarkets-Local/State/National/International.
1 Paid up Capital (INR) 5231.59 crore
2 Total Turnover (INR) 35618.07crore
3 TotalProfitafterTaxes(INR) 9938.55crore
4 Total Spending on Corporate Social Responsibility (CSR)aspercentageofprofitaftertax(%)
DuringFY2018-19,theCompanyhasspent`195.52Crore[i.e.2.09%ofaveragenetprofitsoftheCompanyforlastthreefinancialyears]onvarious CSR activities.
5 Listofactivitiesinwhichexpenditurein4abovehasbeen incurred
Health, Education, Environmental Sustainability, Sanitation, Rural Development, Skill Development programmes, etc.
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Jeerat Transmission Limited, POWERGRIDMithalanchal Transmission Limited (formerly ERSSXXI Transmission Limited), POWERGRIDVaranasiTransmissionSystemLimited(formerlyWR-NRPowerTransmissionLimited)andPOWERGRIDJawaharpurFirozabadTransmissionLimited (formerly Jawaharpur Firozabad Transmission Limited).
2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate the number of such subsidiary company(s)
Yes.TheBRinitiativesofPOWERGRIDgenerallyapplytoitssubsidiariesalso.3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR
initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than 60%]Yes.TheEnvironmentalandSocialPolicy&Procedures(ESPP)ofPOWERGRIDencompassesthecompany,itsJointVentureCompany-Powerlinks Transmission Limited, subsidiaries in general and relative aspects pertaining to Vendors / Suppliers/ Contractors throughcontractconditions.Vendors/Suppliers/Contractorsarerequiredtocomplywiththeprovisionsofthelabourlaws,environmentallaws&effectualsafetyplansthroughstipulationsintheConditionsofContract.ThepercentageofsuchVendors’/Suppliers’/Contractors’aremorethan60%.
Section D: BR Information 1. DetailsofDirector/DirectorsresponsibleforBR a) Details of the Director/Director responsible for implementation of the BR policy/policies ThedetailoftheDirectorresponsibleforimplementationoftheBRpolicy/policiesisasunder: • DINNumber:02018931 • Name:ShriRajeevKumarChauhan* • Designation:Director(Projects)
*Appointed as Director (Projects)w.e.f. 23.08.2018. Prior to this, Shri Prabhakar Singhwas holding the charge of Director (Projects), Shri Singh hadsuperannuatedon30.06.2018.
b) Details of the BR head (as on 31.03.2019)
2. Principle-wise (as per NVGs) BR Policy/policies
The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business released by the Ministry of Corporate AffairshasadoptedfollowingnineareasofBusinessResponsibility:
S.No. Particulars Details1. DIN Number (if applicable) Not Applicable2. Name Dr.R.K.Srivastava#3. Designation Chief General Manager - Incharge (Environment and Social
Management Department)4. Telephone number 0124-25719805. e-mailid rks@powergridindia.com
P1 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
P2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle
P3 Businesses should promote the wellbeing of all employees
P4 Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvan-taged, vulnerable and marginalised.
P5 Businesses should respect and promote human rights
P6 Businessshouldrespect,protect,andmakeeffortstorestoretheenvironment
P7 Businesses,whenengagedininfluencingpublicandregulatorypolicy,shoulddosoinaresponsiblemanner
P8 Businessesshouldsupportinclusivegrowthandequitabledevelopment
P9 Businesses should engage with and provide value to their customers and consumers in a responsible manner
#Dr.R.K.SrivastavatookoverthechargeasBRheadw.e.f.01.03.2019.Priortothis,ShriS.K.Gupta,ED(ESMD,CSR&LA)washoldingthesaidcharge,whohadsuperannuatedon28.02.2019.
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*Conformsto/areupdated/reviewedinaccordancewith,theNationalStandardsincludingGOI/CVC/DPEGuidelines,applicablelawsetc.
#POWERGRID’sEnvironmentalandSocialPolicy&Procedures(ESPP)basedonprinciplesofAvoidance,Minimization,MitigationinthatorderofpreferenceandRestorationwhereverneededisacceptedbyTheWorldBankandAsianDevelopmentBankundertheirpolicyof“UseofCountrySystem”(UCS)and“CountrySafeguardSystem”(CSS)in2009&2017,respectively.
2b. If answer to questions at S.No. 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)
2a. Details of compliance (Reply in Y/N)
S.No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P91. Doyouhavepolicy/policiesfor.... Y Y Y Y Y Y N Y Y2. Has the policy being formulated in consultation with the
relevant stakeholders?*Y Y Y Y Y Y NA Y Y
3. Doesthepolicyconformtoanynational/internationalstandards? If yes, specify?* (50 words)
Y Y Y Y Y Y# NA Y Y
4. Has the policy being approved by the Board? If yes, has it beensignedbyMD/owner/CEO/appropriateBoardDirector?
Y Y Y Y Y Y NA Y Y
5. DoesthecompanyhaveaspecifiedcommitteeoftheBoard/Director/Officialtooverseetheimplementationofthepolicy?
Y Y Y Y Y Y NA Y Y
6. Indicate the link for the policy to be viewed online? www.powergridindia.com7. Has the policy been formally communicated to all relevant
internalandexternalstakeholders?Y Y Y Y Y Y NA Y Y
8. Doesthecompanyhavein-housestructuretoimplementthepolicy/policies.
Y Y Y Y Y Y NA Y Y
9. Does the Company have a grievance redressal mechanism re-latedtothepolicy/policiestoaddressstakeholders'grievancesrelatedtothepolicy/policies?
Y Y Y Y Y Y NA Y Y
10. Hasthecompanycarriedoutindependentaudit/evaluationoftheworkingofthispolicybyaninternalorexternalagency?*
Y Y Y Y Y Y NA Y Y
S.No. Questions Principle 7- Responsible public policy advocacy1. The company has not understood the Principles -2. Thecompanyisnotatastagewhereitfindsitself in
a position to formulate and implement the policies on specifiedprinciples
-
3. The company does not have financial or manpowerresources available for the task
-
4. Itisplannedtobedonewithinnext6months -5. Itisplannedtobedonewithinthenext1year -6. Any other reason (please specify) POWERGRID is amemberof various industrial and tradebodiesand
participates in these forums on issues and policy matters that impact theinterestofourstakeholders.KeepinginviewthesignificantinterestofPOWERGRIDintheTransmissionsector,aseparateRegulatoryCellisinplacetoundertakePOWERGRID’sendeavorofapro-activeapproachas part of policy advocacy with the stakeholders and CERC.Wherever feltnecessary,wegiveourcommentsonvariousapproachpapers, consultation papers, draft regulations etc issued by CERC, TRAI and other authorities.
3. Governance related to BR
• Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year
3-6months
• Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published?
Yes, the Company publishes “Sustainability Report” based on Global Reporting Initiative (GRI) Guidelines. These reports are being published biennially and are available on company website at following link:
https://www.powergridindia.com/sustainability-report
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Section E: Principle-wise performance
Principle 1- Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
1. Does the policy relating to ethics, bribery and corruption cover only the company? Yes/ No. Does it extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?
Yes.POWERGRIDiscommittedtoobservetransparencyandconsistencyinallitsoperations.POWERGRIDfollowsano.ofpolicies/rules to strengthen ethical conduct at all levels including the following:
a) Code of Business Ethics & Conduct: POWERGRIDhas laiddowntwoseparateCodeofBusinessEthics&Conduct–oneforBoardMembersandanotherforSeniorManagementPersonnel(includingthosedeputedinSubsidiaries/JointVentures)inalignmentwithCompany’sVision&MissionandaimsatenhancingethicalandtransparentprocessinmanagingtheaffairsoftheCompany.
b) POWERGRID Conduct and Discipline Appeal rules (POWERGRID CDA Rules): POWERGRID CDA Rules define thedesirableandnon-desirableactsandconductfortheemployeesandextendtoallemployeesworkingwithit(includingthosedeputedinSubsidiaries/JointVentures).TheaspectsofBriberyandCorruptionarealsocoveredunderCDArules.Thereislaiddownprocedureforactionsinthecaseofnon-compliancewiththedefinedtermsaswellasforanymisconduct.
c) Whistle Blower and Fraud Prevention Policy:WhistleBlowerandFraudPreventionPolicyprovidesasystemfordisclosuresmadebyemployeesorcomplaintofanyfraudorsuspectedfraudinvolvingemployeesofPOWERGRID(allfulltime,parttimeoremployeesappointedonadhoc/temporary/contractbasis)aswellasrepresentativeofvendors,suppliers,contractors,serviceprovidersoranyoutsideagency(ies)doinganytypeofbusinessinPOWERGRID.
Since,POWERGRIDisadesignatedpublicauthority,theprovisionsoftheRighttoInformationAct,2005areapplicableonus.TheChiefPublicInformationOfficers(CPIO)attheCorporateandregionallevelensuresmoothaccesstoinformationinatimelymanner.
Severalinitiativeshavebeentaken/arebeingtakenbyPOWERGRIDtostrengthenIntegrity,transparencyandfairnessinitsbusinesspractices which includes the following:
(i) Welldefined“DelegationofPowers”isinplacedelineatingthepowersofthetopexecutivesandbelowforcarryingoutworkinsystematic manner.
(ii) POWERGRID has implemented “Works & Procurement Policy and Procedure (WPPP) for Pre-award and Post-award Stages”(as amended from time to time) with a view to making the policies and procedures more systematic, transparent and easy to administeruniformly throughout itsbusinessoperationswithmajor thrustonexpeditiousanddecentralizeddecisionmakingcoupled with accountability and responsibility.
(iii) “Integrity Pact Program” has been implemented which is considered as a useful tool in ensuring transparency in the procurement process. Contracts above `100Crorearealsomonitoredbyapanelof“IndependentExternalMonitors(IEMs)”.
(iv) ManualsandProceduresareinplaceforConstruction,Operation&Maintenance.
(v) e-procurementmechanismformostoftheprojectprocurementshasbeenimplemented.
(vi) e-Reverseauctionmechanismisinplace.
(vii)TheProject“RUPANTAR”,theEnterpriseResourcePlanning(ERP)initiativeofourCompanyhasbeenimplementedandmajorityof the key processes related to business are running on ERP.
(viii) Detail of Award is posted on the website on real time basis.
(ix) POWERGRID focusesonPreventive,Pro-activeaswell asPunitiveVigilance.Aimingatbetter transparencyand to inculcategoodgovernancewithintheorganization,POWERGRIDhastakenanumberofinitiatives.Fordetails,sectionon‘CommitmenttoTransparency&VigilanceFunction’underDirectors’Reportmaybereferred.
2. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so.
DuringFY2018-19,74nos.ofcomplaintswerereceived.About48.30%ofcomplaintshavebeendisposedofduringtheyearandtheremaining are under due process.
Principle 2 -Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle
1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.
(i) Adoptionofmoderntechniquesviz.GIS/GPS,satelliteimagingetc.helpinselectionofmostoptimumlinerouteavoidingecologicaland social sensitive areas as far as possible thus, resulting in minimum ecological and social footprint.
(ii) Technological initiatives such as use of innovative towers (pole, multi circuit) and adoption of high voltage levels transmission system (1200kV,±800kVHVDC,765kVetc.)notonlyconservedthepreciousRightofWay(RoW)butalsosubstantiallyreducedfellingoftree as well as conservation of wildlife in ecologically sensitive areas.
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(iii) Initiative to utilize the unused inductive power in earth wire for powering of telecom antennas to eliminate use of DG sets by mobile operators-aconstantsourceofpollutionandGHGsemission.
2. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product(optional):
(a) Reductionduringsourcing/production/distributionachievedsincethepreviousyearthroughoutthevaluechain?
(b) Reduction during usage by consumers (energy, water) has been achieved since the previous year?
Theseactivitiesarebeingcarriedoutundervariouspolicies/guidelinesandareimplementedfromtimetotime.
3. Does the company have procedures in place for sustainable sourcing (including transportation)?
(a) If yes, what percentage of your inputs was sourced sustainably? Also, provide details thereof, in about 50 words or so.
SustainabilityinsourcingisenforcedthroughtheEnvironmentalandSocialPolicy&Procedures(ESPP)ofPOWERGRIDwhichextendstoSuppliers/Contractors/Vendorsthroughcontractconditions.Vendors/Suppliers/ContractorsarerequiredtocomplywithESPP,Labourlaws,Environmentallaws&effectualSafetyplansthroughstipulationsintheConditionsofContract.ContractsprovidepenaltiestobeimposedontheVendors/suppliers/contractorsintheeventofbreachofthesaidprovisions.
4. Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work? (a) If yes, what steps have been taken to improve their capacity and capability of local and small vendors?
Weencourageparticipationoflocalvendorsforcertainworksin&aroundourestablishmentsthroughlocalcompetitivebiddingprocess.
5. Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so.
Due to nature of the Company’s business there is no process waste generated and the waste is restricted primarily to metal scraps, used batteries,usedtransformeroil,e-wasteetc.However,Companyhasputinplacesystemsforreuse/recyclingofthesewastematerials.Thewastes suchasused transformeroil,usedbatteries,&e-wastearedisposedeither togovt.authorized recyclers/reprocessorsorchannelizedbacktomanufacturersforrecyclingaspertheapplicablerules/regulations,whichtakescareof100%recyclingofsuchwastes.Forfurtherdetailsonquantityanddisposalmethod,referSustainabilityReportsavailableatbelowhyperlink;
https://www.powergridindia.com/sustainability-report
Besides,the“WastePaperRecycling”plantinstalledatGurgaonSubstationisalsocontributinginproperdisposal/recyclingofwastepaper.
Principle 3- Businesses should promote the wellbeing of all employees
1. Please indicate the Total number of employees. Total numbers of employees as on March 31, 2019 were 9255.
2. Please indicate the Total number of employees hired on temporary/contractual/casual basis. TotalnumberofemployeeshiredoncontractualbasisasonMarch31,2019were631(excludingcontractuallabour).
3. Please indicate the Number of permanent women employees. NumberofpermanentwomenemployeesasonMarch31,2019were687.
4. Please indicate the Number of permanent employees with disabilities Number of permanent employees with disabilities as on March 31, 2019 were 206.
5. Do you have an employee association that is recognized by management. Employeesunderthe‘Workmen’categoryarerepresentedthroughTradeUnionsandtheorganizationhasrecognizedworkmen-management
forum.
6. What percentage of your permanent employees is members of this recognized employee association? Allemployeesunderthe‘Workmen’categoryaremembersofTradeUnion.Workmenrepresentabout24%oftheemployeestrengthin
POWERGRID.
7. Please indicate the Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last financial year and pending, as on the end of the financial year.
S.No. Category No. of complaints filed during the financial year
No. of complaints pending as on end of the financial year
1. Childlabour/forcedlabour/involuntarylabour NIL NIL2. Sexualharassment NIL NIL3. Discriminatory employment NIL NIL
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Employees % of Employees given safety & skill up-gradation training in the last year i.e. FY 2018-19Permanent Employees 79.98%PermanentWomenEmployees 79.62%Casual/Temporary/Contractual Employees
83.35%
Employees with Disabilities 71.85%
8. What percentage of your under mentioned employees were given safety & skill up-gradation training in the last year?
Principle 4- Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised.1. Has the company mapped its internal and external stakeholders? Yes/No Yes,POWERGRIDhasmappeditsinternalandexternalstakeholders.WerecognizeShareholders,RegulatoryAuthorities(GoI),Customers,
Communities/persons residing around our areas of operation, Projects Affected Persons (PAPs)/Communities, Employees, Suppliers&Contractors,Research&DevelopmentInstitutions,FundingAgenciesandMediaasourkeystakeholdersineconomic,environment&socialdimensions.
POWERGRIDengageswith its identified stakeholders on an ongoingbasis and the prioritization of such engagement has beendoneconsideringfactorslikeDependency,Influence,ResponsibilityandProximity.ThereisastructuredStakeholderEngagementMatrixwhichdetailsspecificengagementmechanismsincludingmode&frequencyofengagementforeachstakeholdercategory.
2. Of the above, has the company identified the disadvantaged, vulnerable & marginalized stakeholders? Yes,thecompanyhasidentifiedthedisadvantaged,vulnerable&marginalizedstakeholdersandarebroadlydividedintotwocategoriesviz.
InternalStakeholders[Employees–PersonswithDisabilities(PWD)/SC/ST/Women]andExternalStakeholders[ProjectAffectedPersons/Families(PAPs/PAFs):Widowwomenheadedfamilies,SC/ST/PersonswithDisabilities(PWD)].
3. Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized stakeholders. If so, provide details thereof, in about 50 words or so.
POWERGRIDhastakenfollowinginitiativestoengagewiththedisadvantaged,vulnerableandmarginalizedstakeholders: InternalStakeholders(Employees-PersonswithDisabilities(PWD)/SC/ST/Women)–POWERGRIDensuresdiversityatworkplace
througheffortstorecruit,developandretainthemosttalentedpeoplefromthepoolofSC/ST/OBC/Ex-servicemen/PersonswithDisabilities(PWD)candidates,inaccordancewithGoIdirectivesonreservationmatters.Thespecialinitiativestakeninclude-
A time bound mechanism for the redressal of grievances is in place as under: a) A Reservation Cell has been constituted at the corporate, as well as regional level to comply with GoI directives on reservation
mattersforSC/ST/OBC/Ex-servicemen/PersonswithDisabilities(PWD).Thiscellisundercontrolofnominatedliaisonofficer(s).TheLiaisonOfficer(s)areavailableonapre-fixeddayandtimeforinteractiononceinaweek.Widepublicityregardingavailabilityof the liaison officer is ensured amongst SC/ST employees. Regular meetings with SC/ST/OBC Employee’s Association areconducted. ‘Awareness Programme’ are organized to acquaint the SC/ST/ OBC/PWD employees about the relaxations andconcessions available to them under Government directives.
b) InternalComplaintsCommittees(ICCs)underSexualHarassmentofWomeninWorkplace(Prevention,Prohibition,Redressal)Act,2013existinthecompanyinordertohandlecomplaintsrelatedtotheharassmentofsexualnatureofwomen.
Womenemployeesareextendedcertainrelaxationlikepostinginsoftlocations,etc.FacilitieslikeRampetcareprovidedtoPersonswith Disabilities.
ExternalStakeholders{ProjectsAffectedPersons/Families(PAPs/PAFs)-Widowwomenheadedfamilies,SC/ST/PhysicallyHandicap}-Thespecialinitiativestakeninclude–
a) RehabilitationandResettlement(R&R)measures:Vulnerablegroupslikewidowwomenheadedfamilies/SC/ST/physicallyhandicapwhohavesufferedlossofland/lossofstructure/lossoflivelihood(wageoroccupation)areconsideredforadditionalneedbasedbenefits.
b) CSR Initiatives:CorporateSocialResponsibility (CSR)activitiesofPOWERGRIDare focused towards initiatives thatpromoteinclusive growth and address the basic needs of the under privileged and weaker sections of the society. The organization addresses the issues of Community Development with thrust on Health, Education, Sanitation, Skill development, Infrastructure creation for Rural Development, environmental sustainability, etc. primarily around its areas of operations. A large number of women,girls,SC/ST/Minority,poor&marginalizedsectionofthepopulationwerebenefittedasaresultofPOWERGRID’sCSRinitiatives.VariousCSRinitiativessuchasimprovementinfacilitiesatpublichealthcare/educationalinstitutions,Scholarship/financialassistancetothedeprivedstudents,etc.hadbeenundertakenforimprovingthequalityoflifeofthelessprivilegedpopulation. Besides, a large number of projects involving infrastructure development in rural areas like Installation of solar street lights,creatingsanitationanddrinkingwaterfacilities,construction/renovationofroads,Classroom,communitycenters,toiletsinschool, providing schools furniture etc. have been undertaken to make the basic facilities and services available to the community. In addition, the Company continues to undertake several CSR Skill Development initiatives by imparting livelihood oriented skill developmenttrainingthroughthereputedinstitutionlikeNSDC,Indo-GermanInstituteforAdvancedTechnology(IGIAT),Vizag,IndoGermanToolRoom(IDTR),Indoreforimpartinghigh-endskilltrainingtoyouthtoenablethemformeaningfulanddecentemployment.
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Principle 5 - Businesses should respect and promote human rights1. Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/Suppliers/
Contractors/NGOs/Others? HumanRightsissuesareincorporatedunderrelatedpolicies&practicesofPOWERGRIDwhichextendtotheemployeesincludingthose
deputed in Subsidiaries/ Joint Ventures and relative aspects pertaining to Vendors/ Suppliers/Contractors through contract condition.Further,TheConduct andDisciplineAppeal rules (“CDARules”) of POWERGRIDalsodefine thedesirableandnon-desirableacts andconductfortheemployees(includingthosedeputedinSubsidiaries/JointVentures).Thereisalaiddownprocedureforactionsincaseofnon-compliancewiththedefinedtermsaswellasforanyinappropriateorunwelcomesexually-orientedbehavior.Topromotefairandequitableemploymentrelationship,aschemeforGrievanceRedressalofemployeesisalsoinplacewhichensuresatimeboundredressalof grievances. Internal Complaints Committees (ICCs) have been constituted under the Sexual Harassment ofWomen atWorkplace(Prevention,ProhibitionandRedressal)Act,2013toredesscomplaintsreceivedregardingsexualharrasment.
POWERGRIDalsogotcertified toSocialAccountability standardSA-8000 for itshumanresourceand labourmanagementpoliciesandpractices. Vendors /Suppliers / contractors are required to complywith the provisions of the labour laws/Human rights etc throughstipulations in the conditions of contract. As per the Contract agreement, contractors are prohibited from subjecting their workers to any child, forcedorcompulsory labour.Allcontractorsarerequiredtocomplywithvariouscompensationandregulatoryacts.AllsupplierstoPOWERGRIDhavetoconfirmtoGeneralConditionsofContractandSA8000clauses.POWERGRIDtakesdeclarationregardingSocialAccountability from the bidders/contractors for compliance of all requirements of Social Accountability Standards i.e., SA8000 (latestStandardavailableatwww.sa-intl.org),thisdeclarationformspartofContractDocuments.Provisionofpenaltiesfornon-adherenceofthesame are also included in the contract conditions.
POWERGRIDpromotesawarenessoftheimportanceofrespectingHumanRightswithinitsvaluechainanddiscourageinstancesofabuse.Besides conducting technical and behavioral trainings, the training on Human Rights issues to sensitize people towards women, the differently-abledandthesociallyweakersectionsofthesocietyhavealsobeenimparted.
2. How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the management?
Nocomplaintwasreceivedregardinghumanrightsviolationduringthereportingperiod(2018-19).Principle 6 - Business should respect, protect, and make efforts to restore the environment1. Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/Suppliers/
Contractors/NGOs/others. The Environmental and Social Policy& Procedures (ESPP) of POWERGRID encompasses the company, its Joint Venture – Powerlinks
TransmissionLimited,subsidiariesingeneralandrelativeaspectspertainingtoVendors/Suppliers/Contractorsthroughcontractcondition.2. Does the company have strategies/initiatives to address global environmental issues such as climate change, global
warming, etc? Y/N. If yes, please give hyperlink for webpage etc. Yes,Companyhastakenvariousinitiativesformitigatingclimatechangetofulfilitscommitmenttowardsthegoalofsustainabledevelopment
andtomeettheGoI’sNationallyDeterminedTarget(NDC)underParisagreement.Somemajorinitiativesinthisregardare:- Following the cardinal principle of avoidance, minimization as per Environmental and Social Policy and Procedures (ESPP), involvement
offorestlandinitstransmissionlineprojecthasbeenprogressivelyreducedfrom6%in1998to2.26%atpresent,thusplayingamajorroleinpreservingthepreciouscarbonsinkinlinewithGoI’scommitmenttoParisagreement.Itisestimatedthatapprox.1.25million tons of CO2 absorption by above saved forest annually through this initiative.
POWERGRIDisplayingakeyroleinintegrationofrenewableenergyresourcesbyestablishinghighcapacity“GreenEnergyCorridors”dedicated for renewable energy including solar parks across the country. Such initiative not only reduced the dependency on thermal generation but also provided boost to renewable generation by providing reliable grid connectivity which was earlier thought to be a majorimpedimentforrenewableenergydevelopment.POWERGRIDisimplementinginter-statetransmissionsystemforeightsolarparksofabout7,200MWinfiveStates.Suchtransmissioncorridorswillfacilitatetransferof43GWofrenewableenergyagainstINDCtargetof75GW.
RecognizingtheimportanceofsolarpowerincombatingClimatechangeandin-linewithGOI’scommitmenttowardsParisAgreement,POWERGRIDhasbeeninstallingsolarstreetlightingandSolarPVSystemsinitssubstationpremisesandofficeestablishments.Weareintheprocessofinstalling5MWpRooftopSolarPVSystemscoveringmorethan50locationsinitspremises.Thisinitiativewillresultinfurthersavingof7-8MillionUnits(MUs)ofGridconnectedenergyperannum,thereby,furtherreducingatmosphericemissionofapprox.35916mt.ofCO2 per year.
Anothersignificantinitiativeistheuseofinductivepowerinearthwireforpoweringoftelecomantennas.Thisinductivepowerwhichotherwise goes waste will eliminate the use of DG sets, a constant source of pollution and GHGs emission. The technology has been successfully tested at pilot scale and regulatory approval of the CERC has also been received.
InlinewithGoIE-Mobilitymissiontowardsloweringvehicularemissionandtoensureenergysustainability,POWERGRIDhasbeenusinge-vehiclesforitsdaytodayofficialtransportation.POWERGRIDisalsodevelopingElectricVehicle(EV)ChargingStationsacrossIndiatofacilitateE-mobilitysolutionsinroadtransportcovering2-Wheelers,Rickshaws/Autos,Taxis,Cars,Busesetc.
Further,ontheTechnologicalInitiativesfront,effortsarebeingmadeforconservationofenergyinourprojects–rightfromplanningstage,totheexecutionstageandthroughouttheOperation&Maintenanceperiod.Weareimplementing±800kVHVDCsystemsand765kVD/ClinestominimizeRoWandenvironmentalproblems.Wehavealsodeveloped1200kVUltraHighVoltage(UHV)ACtechnologyindigenously,thehighesttransmissionvoltagelevelintheworld,incollaborativeeffortswithdomesticmanufacturers.Thiswillenabletransferof6000-8000MWpoweroversinglecorridor.Inaddition,effortsarebeingmadetoswitchtohighperformanceconductorsinexistingandnewlineswhich involve lower sag as against conventional conductor at higher operating temperatures thereby resulting in reduction of tower weight andincreasingspanandconsequently,reducethetotalsteelrequirementresultingintolowercarbonfootprint.Theselatesttechnologieswillhavewideinfluenceinminimizingenvironmentalandsocial impactofhighvoltagetransmissionlineandtheseinitiativeswillshowextensiveresultsinoptimizationofRoWanditsassociatedenvironmentalandsocialimpact.POWERGRIDhasalsobeendesigningand
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usingCompacttowers/Poletypetowers/Multi-circuittowersdependinguponlandtopographyandconditions.GasInsulatedSubstation(GIS)arealsobeingestablishedbyPOWERGRIDtoreducelanduse.POWERGRIDhasalreadyimplementedpilotprojectsonSubstationAutomationSystemwith Process Bus architecture in the pursuit ofDigital substation.Moreover a project on retrofitting conventionalcontrolandprotectionsystemwiththelatestProcessBusbasedsolutionatoneoftheoldsubstation-400/220kVMalerkotlasubstation,hasalsobeeninitiatedapartfromutilizingtheProcessBusinanotherupcominggreenfieldprojectatChandigarh.Wehaveintroduced33kV Mobile Capacitor bank for enabling the distribution utilities to tackle voltage related issues during particular season of the year. As a majorsteptowardsthepro-activemaintenance,POWERGRIDhasdevelopedin-housetoolforonlineconditionassessmentoftransformers.POWERGRIDisalsodevelopingatoolforhealthindexingoftransformersasanextsteptowardsefficientconditionassessment.Apartfromabove,wehavetakeninitiativesfordevelopmentofSmartGridinIndiatowardsbringingefficiencyindistributionandareextendingconsultancyservicesforimplementationofvariousprojectsonSmartGridtechnologyindifferentstates.
3. Does the company identify and assess potential environmental risks? Y/N Yes. A detailed Risk Assessment and Management procedure is in place to identify and assess potential environmental and social risks,
aspartofoverallprojectanalysis.ThePOWERGRID’sESPPwhichisbasedontheprinciplesofAvoidance,MinimizationandMitigationoutlinesPOWERGRID’sapproachandcommitmenttodealwithenvironmentalandsocialrisk/issuesandlaysoutmanagementproceduresandprotocolstomitigatethesame.Itprovidesaframeworkforidentification,assessment,andmanagementofenvironmentalandsocialconcernsatbothorganizationalandprojectlevel.ESPPframeworkincludesproceduresfor:(a)ScreeningandIdentificationofRisks(fromenvironmentalreceptors,socialreceptorsandotherstakeholders);(b)avoidanceofrisks(includingcriteriaandproceduresforalternativerouting);(c)mitigationofriskthroughimpactmanagement, implementationofGoodInternationalIndustryPractices(GIIP),adequatecompensationtoaffectedstakeholders,publicconsultationanddisclosure,andgrievanceredress;(d)monitoring,reporting,evaluation,feedback,managementreviewandcorrectiveaction;and(e)responsibilityandresourceallocationincludinganorganizationstructureformanagement of social and environmental risks.
POWERGRIDisaccreditedwithaPubliclyAvailableSpecification,PAS99:2012basedIntegratedManagementSystem(IMS)thatincludesISO9001:2015(QualityManagementSystem),ISO14001:2015(EnvironmentManagementSystem)andOHSAS18001:2007(OccupationalHealth&SafetyManagementSystem).
4. Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if Yes, whether any environmental compliance report is filed?
No.5. Has the company undertaken any other initiatives on - clean technology, energy efficiency, renewable energy, etc. Y/N. If
yes, please give hyperlink for web page etc. Yes.POWERGRIDcontinuestoundertakeinitiativesonEnergyEfficiencywhichincludesenergyauditsofvariousindustries/institutions/
transmission&distributioncompanies/watermanagementsystemsofcanals&irrigationdepartments/othercommercialestablishments/thirdpartyconsultancyforbase-liningwork/InvestmentGradeEnergyAuditreportsformunicipalitiesacrossIndia,etc.whichisabasicneedforimplementationofEnergyEfficiencysolutions/EnergyServiceCompany(ESCO)projects.WearealsoaBEEcertifiedESCOforundertaking implementationofenergyefficiencyprojects.To facilitate implementation,POWERGRIDhas signed / is in theprocessofsigningMoUswithGovt.agenciesforundertakingconsultancy&investmentinEnergyEfficiencyProjects.
POWERGRIDisplayingakeyrole in integrationofrenewableenergyresourcesbyestablishinghighcapacity“GreenEnergyCorridors”dedicated for renewable energy including solar parks across the country. Such initiative not only reduced the dependency on thermal generation but also provided boost to renewable generation by providing reliable grid connectivity which was earlier thought to be a major impedimentforrenewableenergydevelopment.POWERGRIDhasalsoevolvedacomprehensivetransmissionplanforgridintegrationofvariousRenewableEnergyZones(66.5GW)inthecountry.
Forfurtherdetail,Sectionson‘EnergyEfficiency’and‘IntegrationofRenewableEnergy’undertheDirectors’Reportmaybereferred.6. Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial
year being reported? Powertransmissionprojectactivitiesdon’t involveanydirectemission/wastetoenvironment.Theonlyemissionthatcanbeattributed
to our activity is from operation of DG sets used intermittently as power backup. However, regular maintenance of DG sets ensured containment of emission levels well within the permissible limits prescribed by Pollution Control Boards.
7. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of Financial Year.
NIL POWERGRIDdidnotreceiveanyshowcause/legalnoticefromCPCB/SPCB.Principle 7 - Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner1. Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your
business deals with: POWERGRIDisamemberofvariousindustrybodiesincludingthefollowing: 1. Federation of Indian Chambers of Commerce and Industry (FICCI) 2. Confederation of Indian Industry (CII) 3. CII CPSE Council 4. TheAssociatedChambersofCommerce&IndustryofIndia(ASSOCHAM) 5. PHDChamberofCommerce&Industry(PHDCCI) 6. CentralBoardofIrrigation&Power(CBIP)
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7. WECIndia(formerlyknownasWorldEnergyCouncil-IndiaMemberCommittee) 8. IndianInstituteofPlantEngineers(IIPE) 9. Standing Conference of Public Enterprises (SCOPE) 10. Internet Services Providers Association of India (ISPAI) 11. Association of Competitive Telecom Operators (ACTO) 12. InfrastructureIndustry&LogisticsFederationofIndia(ILFI) 13. India Infrastructure Forum (IIF)2. Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No;
if yes specify the broad areas. (dropbox: Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy security, Water, Food Security, Sustainable Business Principles, Others)
POWERGRIDparticipatesthroughassociationsin(1)aboveontheissuesandpolicymattersthatimpacttheinterestofourstakeholders. Keeping inview thesignificant interestofPOWERGRID in theTransmissionsector,aseparateRegulatorycell is inplace toundertake
POWERGRID’sendeavorofapro-activeapproachaspartofpolicyadvocacywiththestakeholdersandCERC.Whereverfeltnecessary,wegiveourcommentsonvariousapproachpapers,consultationpapers,draftregulationsetcissuedbyCERC/TRAI/otherauthorities.Besides,POWERGRIDalsogives itscomments in thefieldofGovernance&Administration,EconomicReforms, InclusiveDevelopmentPolicies,Energysecurity,Water,SustainableBusinessPrinciplesetc,asandwhensoughtbyGoI.Wehavealsomadesignificantcontributionindesigning/planningeco-friendlymeasurestomitigateimpactsoftransmissionlineonwildlifeasamemberofTaskforceconstitutedbyMoEF&CC.
Principle 8- Businesses should support inclusive growth and equitable development1. Does the company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes
details thereof. BytheverynatureofourbusinessandastheCentralTransmissionUtility,wetouchmillionsofliveseverydayandunderstandthatreal
successistheresultofinclusivedevelopmentoftheinvolvedentitiesandstakeholders.Wesupporttheprinciplesofinclusivegrowthandequitabledevelopmentthroughcorporatesocialresponsibility(CSR)initiativesaswellasthroughourcorebusiness.
OurcommitmenttowardsSocialResponsibility(Labour,Employees,Communities,Employee’sfamilies)isamplyreflectedinouralreadyadoptedIntegratedManagementPolicy,EnvironmentalandSocialPolicy&Procedures(ESPP),RehabilitationActionPlan(RAP),CorporateObjectives,OSHAS-18001andSocialAccountabilitySA8000.CorporateSocialResponsibilityisprimarilytoshowcaseourabidingcommitmentandconcerntopay-backtothesocietyandenvironmentforthebenefitsreapedsofar.CSRhasalwaysbeenanintegralpartofourvisionandthecornerstoneofCoreValuesofGoodCorporateCitizenship.Wearecommittedtowardstakingresponsibilityforitsimpact,thoughveryminimalinnature,onsocietyandbeingaccountabletotheinhabitantsofMotherNature.Weemphasizeonoverallsocio-economicdevelopment of areas and communities around our operations through various community development programmes, initiatives such as Livelihood generation, Skill development, Healthcare, Education, Plantation, sanitation, drinking water, roads, drainage system, community centres, development and conservation of water bodies, etc.
2. Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government structures/any other organization?
Theprograms/projectsareundertakenbyin-houseteamsaswellasthroughGovt./SemiGovt.agencies/agenciesofInternationalandNational repute, etc.
3. Have you done any impact assessment of your initiative? Yes.ImpactAssessmenthavebeencarriedoutinter-aliatounderstand/evaluatethecommunitydevelopmentactivitiesundertaken,the
benefitsaccruedtocommunities;andtogaininsightsforformulating&improvingthecommunitydevelopmentactivitiesinfuture.Forprojects belowRs 3 crore, impact assessment had been undertaken by POWERGRID internally, however, for larger projects externalagencies were engaged.
ImpactAssessmentStudyoftheRehabilitationActionPlan(RAP)implementationiscarriedoutafter1-2yearsofRAPimplementationtoascertainwhethertheintendedbenefitsandotherobjectivesoftheRAPhavebeenachieved.Suchassessmentiscarriedoutbyindependentagencies&measurestomitigateanyshortcomingduringsuchImpactAssessmentareincorporatedinthenextimplementationtoavoiditsreoccurrence.Duringtheyear,threesuchstudiesforIndore,Solapur&Parlisubstationshavebeencarriedoutandthereportsaredisclosed/availableonfollowinglink:
https://apps.powergridindia.com/esm-documents/resettlement-and-rehabilitation.aspx4. What is your company’s direct contribution to community development projects- Amount in INR and the details of the
projects undertaken? An amount of `195.52 Crore has been incurred and more than 200 CSR projects worth about `360 crore have been sanctioned under CSR
activitiesduringtheFY2018-19.Communitydevelopmentworkswereundertakenfortheoverallimprovementofsurroundingvillagesandcommunity. Based on social assessment outcome, we implement need based development works like supply and installation of Solar street lights,Watersupplyhand-pumps,waterfiltrationplants,WaterATMs,constructionofroads,communitycentersinvillages,classrooms,toilets,schoolsfurniture,watersupplyarrangementsindifferentschools,supplyofdustbins&Cleaningequipmentetc.inassociationwithlocal authorities.
5. Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please explain in 50 words, or so.
Thecommunitiesintendedtobebenefittedareconsultedandcloselyinvolvedintheprocessofidentifying,planningandimplementationof the CSR activities. Wherever possible, the local authorities and specialised agencies are similarly consulted and involved. Duringimplementation and just before handing over of facility, regular awareness programs are organized with the help of local bodies, etc. to inculcate ownership of facility.
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Principle 9- Businesses should engage with and provide value to their customers and consumers in a responsible manner1. What percentage of customer complaints/consumer cases are pending as on the end of financial year. NIL 2. Does the company display product information on the product label, over and above what is mandated as per local laws?
Yes/No/N.A. /Remarks(additional information) Not Applicable.3. Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising
and/or anti-competitive behaviour during the last five years and pending as on end of financial year. If so, provide details thereof, in about 50 words or so.
No4. Did your company carry out any consumer survey/ consumer satisfaction trends? Weengagewithourcustomersonanongoingbasisandgenerallyholdmeetingsonaregularbasis.Theobjectiveofsaidmeetingsinter
aliaincludesidentificationofprocessimprovementareas,understandingconcerns/expectationsofcustomers.Basedonfeedback,companytakesmeasuresforsystemimprovement,whereverrequired.
For and on behalf of the Board of Directors
(Ravi P.Singh) Director (Personnel) & CMD
DIN:05240974Place: New DelhiDate: 19th July, 2019
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ANNEXURE - III TO THE DIRECTORS’ REPORT
1. Particulars required under Rule 8 (3) of the Companies (Accounts) Rules, 2014 read with Section 134 (3) (m) of the Companies Act, 2013.
A. CONSERVATION OF ENERGY (a) Energy conservation measures taken and on hand: IthasbeentheendeavourofPOWERGRIDtomakeallouteffortsforconservationofenergyinall itsprojects-rightfromthe
planning stage, to the execution stage and throughout the O&M period. Before finalizing the transmission schemes, variousalternatives/ technologies forpower transferareexaminedandoneof themajorcriteria forselectionof transmissionsystem/technologyislowerlosses.Infact,POWERGRIDhasadoptedhighervoltagelevelslike765kVAC,+500kV HVDC, +800kVHVDCin its transmission systems for bulk power transfer across various regions which result in lower losses in the system. 1200kV AC systemisalsobeingconsideredforbulkpowertransmissionwhichisunderfieldtrialstagenow.
At design stage of the transmission system, optimization of various parameters is done so that losses in the transmission system are optimized. The conductors are selected after detailed optimization studies which consider reduction of line losses as one of the primarycriteria.Thebusbarmaterialsandtheclampsandconnectorsarechosenmeetingstringentinternationalrequirementssothatlossesareoptimized.Duringevaluationoftransformer&shuntreactorpackages,equipmentwithminimumlossesisgivenweightage.IncaseofHVDCsystemalso,theselectionofparametersoffiltercomponents,ThyristorValves,ConverterTransformeretc. is done in such a way that overall losses are minimized even under various system operating condition. Further, in case of transmissionhardware, thematerialwith lower losses isspecified.Parametersandtypesofvariousotherequipmentsarealsochoseninamannerthatthelossesareoptimized.Thus,energyconservationmeasuresaretakenbyPOWERGRIDateverystepsoastodevelopanefficientandlow-losstransmissionnetwork.POWERGRIDhasalsoestablishedadedicatedEnergyEfficiencyCell to make inroads into the conservation of energy and reduction of carbon emission in industrial and commercial sectors. Energy audits are regularly carried out to identify opportunities for energy saving and few implementations have also been undertaken successfully to reduce energy consumption in industries and agriculture sector. POWERGRID has undertaken Energy Audit ofIntegrated Steel Plants.
(b) Additional investment and proposals, if any, being implemented for reduction of consumption of Energy: As stated above, POWERGRID undertakes energy conservationmeasures bymeans of reduction of losses in its transmission
schemesrightfromplanningtoexecutionstage.B. RESEARCH AND DEVELOPMENT 1&2 IthasbeenPOWERGRID’sendeavortopursuetheresearchanddevelopmenteffortsinthefieldofnewtechnologiesintransmission
systemtoremainatparwithinternationalstandards.Also,realizingtheneedforconservationofRight-of-Wayandfuturerequirementofdevelopmentofhighcapacitytransmissionsystemtomeetthefuturepowerrequirement,POWERGRIDisactivelypursuingseamlessintegrationofnewandefficient technologies in IndianpowerGrid to createenvironment-friendly transmission system.POWERGRIDhasaccordedspecialemphasisonadoptionofnewtechnologiesavailablearoundtheglobeforimprovingthequalityofpowersupply,reduction of losses, optimum utilization of the available transmission assets, conservation of environment and optimizing upon the cost of deliveredpower.ThecompanyisworkingincollaborationwithInternational/Nationalresearch/academicinstitutions;manufacturersetc.andisthusenhancingitsin-housecapabilitiesfordesignandengineeringofState-of-the-Arttransmissionsystems.
POWERGRID Advanced Research and Technology Centre POWERGRIDhasestablishedworldclasslaboratoriesandtestfacilitiesatManesar,Gurgaonforcarryingoutresearchanddevelopment
inpowertransmissionarea.ThisR&DcentreshallcatertotheresearchneedsofPOWERGRIDandoftheCountrytoalargeextentwithstate-of-the-artlaboratoriesforpowersystemanalysis,advancedequipmentdiagnostics,smartgrid,controlandautomation,materialscience, engineering design etc.
TECHNOLOGY DEVELOPMENT POWERGRID adopts and encourages the research & development (R&D) activities in pursuit of technological excellence in power
transmission.Notableamongthem,aretheprestigious1200kVNationalTestStationprojectatBina,MadhyaPradeshandtheProcess-bus in Substation Automation System
SpecificareasinwhichR&Dhasbeencarriedoutbythecompanyandbenefitsderivedtherebyaregivenbelow: Completed Projects: 1. HVDCprojectwithLTTthyristorinBalia-BhiwadiHVDC 2. Fourconvertertransformerarrangementarrangedinsuchaconfigurationthatoutagetimeoftransformerisminimized. 3. Completedin-housedesignof10no.towersfortransmissionlinesincluding108meters800kVHVDCnarrowbasedpowerline
crossing tower. 4. Completed in-housedesignofapprox.2000nos.towerfoundationsfortransmission linesupto765kVincluding52nos.ofpile
foundations. 5. Completedtestingof12nos.oftowersforvarioustransmissionlinesincluding800kVHVDC,320kVHVDC,66kV,132kV,220kV,AC
D/Ctowers.
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6. DevelopmentofIndigenousvendorsfor765kVTransformers,Reactors,CircuitBreaker,CurrentTransformerandWaveTrap. 7. POWERGRIDhassuccessfullyimplementedfirstofitskindpilotprojectongridscalebatteryenergystoragesystems(BESS)in
Indiacomprisingofbatteries,powerconditioningsystem,batterymanagementsystemetc.atPuducherrybasedontwodifferenttechnologies(AdvancedLeadAcid,LithiumLon).Basedontheexperiencegainedfromtheproject,implementationoflargescalebattery energy storage system in future may be taken up.
8. POWERGRIDhassuccessfullycommissionedStaticVarCompensatorsat3locationsandSTATCOMat11locationsonallIndiaGrid. 9. Reconductoring of 2 no. 132kV lines with high temperature endurance conductor to enhance the power transfer capacity by about
2 times were completed during last year. 10. To control increasing short circuit current levels in the network, application of series reactors as fault current limiters in the Grid is
being taken up 4 no. series reactors comprising of 2 no. series bus reactors a Mandola and Ballabgarh and 2 nos. series line reactors atMandolaendofDadri-Mandola400kVD/chavebeencommissionedtocontrolthefaultlevelatthesesubstaions.
11. Completeddesign,engineeringandtestingofResinImpregnatedPaperbushingsforintroductionintoPOWERGRIDfleetof765kVTransformers and Reactors.
12. POWERGRIDhassuccessfullydevelopedsoftwaretoolcompletelyin-houseforcentralizedrealtimemonitoringoftransformerandreactors by integrating the sensors installed in the transformers and reactors for Dissolved Gas Analysis and the tools are currently in operation at NTAMC and RTAMCs.
13. Pollutionmapping:POWERGRIDinassociationwithSouthernandEasternRegionalPowerCommitteesandtheconstituentSTU’sof the Southern Region and Eastern Region has successfully carried out pollution mapping activity of these regions and generated pollution maps.
14. POWERGRIDhasintroduced33kVmobilecapacitorbanksforutilizationatdistributionlevelforstateutilitiesandevaluateditseffecton distribution system of Haryana.
Ongoing projects 1. Re-conductoringoffollowinglineswithhightemperatureenduranceconductortoenhancethecapacityofthetransmissioncorridor
by about two times: • Maithon–Maithon-RB400kVD/c(TwinMoose) • NeyveliTS-II–NeyveliTS-IExpansion400kVS/c • Rangpo–Siliguri400kVD/c 2. FaultCurrentLimiters:SeriesbusreactoratBhiwaniand2no.serieslinereactoratKanpur(Old)endofKanpur(New)-Kanpur
(Old)400kVD/clineisunderimplementation.SeriesbusreactoratWardhasubstationisunderinvestmentapproval. 3. Dynamic Compensation: STATCOMs at 3 locations on all India grid (in Southern Region are being implemented for dynamic control
of reactive power in order to maintain the voltage and improve the stability of the grid. These dynamic compensations would be basedonState-of-the-ArttechnologiesandwouldprovideonlinedynamicsupporttotheGrid.
4. Developmentofin-housetowerandfoundationdesignsincluding66kV,132kV,220kV,+320kV HVDC, +800kVHVDCand765kVD/CMultiCircuittowersforuseinon-goingtransmissionlineprojects.
5. Development of Indigenous Vendors for HTLS Conductors. 6. Designofspecialnarrowbasetowertoenablecrossingof765kVD/Ctransmissionlines. 7. Vendor Development for 765kV GIS in India. 8. GreenEnergyCorridors:Tofacilitateintegrationoflargescalerenewablegeneration,POWERGRIDhasstartedimplementationof
GreenEnergyCorridors(GEC)inter-statetransmissionsystem(ISTS)inrenewableresourcerichstates&furthertohandlevariability&intermittencyofrenewableenergysources,POWERGRIDisestablishingstate-of-the-artrenewableenergymanagementcenters(REMC)invariousSLDC/RLDC/NLDC.ISTStransmissionnetwork&REMC’sareundervariousstagesofimplementation.
POWERGRID isalsoperformingavital role inevacuatingrenewablegenerationthroughsolar resourcesacrossnationandhasevolvedcomprehensiveplanstoevacuatepowerfromvariousultra-megasolarparksthroughInter-statetransmissionnetwork.Further, Your Company is also implementing the evacuation system for various solar parks integrated with ISTS network in the Country.
YourcompanyhasalsoevolvedacomprehensivetransmissionplanforgridintegrationofvariousRenewableEnergyZones(66.5GW)inthecountryidentifiedbasedonwind/solarpotential.Partoftheschemeisalreadyapprovedbystakeholdersandtakenupfor implementation.
Towards sustainability and green initiative, your company has installed Rooftop Solar PV Systems in more than 50 locations capacity intherageof50-100kwpofitsownpremisesacrossthecountrythroughnet-meteringarrangement.
9. Implementation of Controlled Switching schemes of circuit breakers for 400kV transmission line reactors and transformers. 10. Engineering Data Integration on GIS Platform. 11. Process bus Technology - Gaining experience from the pilot projects on Process Bus technology at Bhiwadi substation and
Neemranasubstation,POWERGRIDhasinitiatedtheprojectatMalerkotlasubstationforretrofittingconventionalprotectionand
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controlschemeswithadvancedautomationsystembasedonProcessBus.AlsoPOWERGRIDisutilizingProcessBustechnologyintheupcoming220/66kVGISsubstationprojectatChandigarh.Thenewschemeisexpectedtoeasethemaintenanceandtroubleshootinginfutureandalsorestorationtimewillbeextremelylowincaseofanyeventuality.Alsothereplacementoflargeamountofcoppercableswithminimalfiberopticcablesisexpectedtooptimizespacerequirement.
12. POWERGRIDisintroducingMobiletestsystemstofacilitateonsitetestingofEHVequipment.ThiswillfulfillHVtestingofequipmentafter site repairs.
13. Geographic informationsystemtools-POWERGRIDisutilizinggeographic informationsystemstools likeBhuvanonpilotbasisfor mapping its transmission assets, for route alignment during planning of new transmission lines and for disaster management studies.
14. Development of Indigenous vendors for 765kV Isolators and surge arrestors. 15. Development of indigenous 765 kV clamps, connectors and insulator string hardware. 16. Sparephaseswitchingarrangementisbeingadoptedfor765kVtransformersandreactorstominimizeoutage/shutdownperiod. 17. Implementation of smart grid technology in power system is being carried out through installation of phasor measurement units
(PMU)onEHVsubstationsinpanIndiabasisintegratedwithcontrolcentresforWideAreaMeasurementsandrealtimemonitoringof grid parameters.
18. POWERGRIDhassuccessfullyimplementedfourpilotprojectsinthefieldofstate-of-the-artSmartGridtechnologyindistributionarea and presently providing consultancy to four state utilities in smart grid area covering distribution infrastructure, advanced metering infrastructure, intelligent outage management system, electric vehicle charging stations management, distributed generation, net metering etc.
19. Establishedfirstofitskinde-taxichargingstationatMiyapurMetroStationinHyderabadandplanningtoinstallfourmorechargingstationat various locationsofHyderabadMetroCorridor.POWERGRIDhas signedMoUwith IndianOilCorporation (IOC)andenvisaged to develop EV Charging and Battery swapping facility at various Retail outlets.
20. Towardsconditionassessmentofthetransformersinamoreefficientway,POWERGRIDisnowdevelopingasoftwaretoolforhealthindexing.Thetoolwillbeutilizedforresiduallifeassessmentoftheequipmentatalaterdate.
Technology Absorption: 1. Forrouteselection,lengthoptimisationandestimationofBOQfortransmissionlines,POWERGRIDhasemployedmodernSurvey
techniques. 2. SubstationAutomationwithIEC61850protocol isbeingadopted forallnewSubstationsofPOWERGRID.Thiswouldresult in
savingsinoperationalcostandincreasedoperationalandmaintenanceefficiency. 3. As a step towards National grid, 765kV AC Double circuit and +500kVHVDC&+800kVHVDCtechnologyhasbeenimplemented
in our country. 4. Inspecialareas,compacttowerslikepoletowers,deltaconfigurationtowersandnarrowbasedtowerswhichreducethespace
occupiedbythetowerbase,arebeingused.Alsotalltowersandmulti-circuittowersarebeingusedforconservationofscarceright-of-way.
5. UseofmetallicreturninHVDCsystemhasbeenadopted. 6. Special insulators like polymer composite insulators have been adopted in transmission lines in polluted areas. 7. High temperature low sag conductors have been adopted for increasing the transfer capacity of transmission corridors. 8. GIStechnologyat400kVand765kVlevelhasbeenadoptedinsubstationswherespaceconstraintsexist. 9. Multi-levelbeamshavebeenusedinGISandAISsubstationswithmulti-ckt.linestooptimizelinecorridorareasnearsubstation. 10. Onlinetransformermonitoringtechniquesarebeingusedformonitoringofcriticalparametersofpowertransformers. 11. Dynamic compensation in the form of SVCs and STATCOMs are being implemented for dynamic control of reactive power in order
to maintain the voltage and improve the stability of the grid. 12. For controlling short circuit current in the system, fault current limiters have been planned in the Grid. 13. For Voltage Control at Kurukshetra, 500MVAr TCR is under implementation.C. CONSERVATION OF LAND AND ENVIRONMENTAL CONCERNS Transmissionprojectsareconsideredbyandlargeenvironmentallybenignduetothefactthattheydon’tinvolvedisposalofanypollutants/
wasteinvariousenvironmentalmatrices,i.e.air,waterorsoil.EventhenPOWERGRIDbeingaresponsiblecorporateentityaddressesany residual environmental or social impacts associated with its business following the cardinal principles of Avoidance, Minimization andMitigationasoutlinedinitsEnvironmentalandSocialPolicy&Procedure(ESPP).Indoingso,yourCompanyleveragetheroleoftechnologybynotonlyadoptingtheexistingmoderntechnologicaltoolsandtechnologiesdevelopedindifferentpartsoftheworldbutalsoemphasizeonin-housetechnologydevelopmentmeetingthenationalrequirement.
InacountrylikeIndia,whichcatersto18%oftheworldpopulation,whilehaving2.4%ofworld’slandmass,conflictsrelatedtolandresourcesarenotuncommonduetopresenceofdifferentcompetingusergroups.POWERGRIDasafirmbeliever inaddressing thepressing social needs of the society, has always been forthcoming in up gradation and adoption of new and better technologies such as
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GasInsulatedSwitchyard(GIS)whichrequireslesserareacomparedtothetraditionalAirInsulatedSwitchyard(AIS).Additionally,ithastakenapolicydecisiontosecurelandforitssubstationsthroughdirectpurchaseonwillingbuyerwillingsellerbasisonmarket/negotiatedrate toavoidpublic resistanceandcourt intervention facedduring landacquisition.Land forJeerat,Chandauti,Saharsa&Sitamarhisubstations were secured through this method.
AnotherareawhereweareabletomakesignificantcontributioninreducinglandrequirementisRightofWay(RoW)throughinnovativetowerdesignsuchasspecialcompacttower,poletypetowerandMulti-circuittowerstoreduceRoWrequirement.Thesetechnologicalinterventionsnotonlyreducedtherequirementofpreciouslandresourcesandsocialriskstoprojectsbutalsohelpedinpreservationofenvironment by minimizing forest and vegetation involvement. Further, construction of high energy corridors by transmitting power at highervoltagelevels(765KVHVAC,800/1200KVHVDC)notonlyreducedtransmissionlossesbutalsoreducedRoWrequirementsbyensuringtransmissionofmorepowerperunitofRoW(MW/meterofRoW).Inaddition,itisworthmentioningthatMinistryofPower,Govt. of India came up with a landmark guidelines dtd 15th October, 2015 paving the way for the payment of diminishing value of land. POWERGRIDhasstartedmakingpaymentfortowerbaseandcorridorinaccordancewithnotificationsissuedtilldateby13states.Suchadditionalpaymentforlandcost/diminishinglandvaluehasgreatlyhelpedinsmoothexecutionofprojectbyfurtherminimizingthesocialriskassociatedwiththeprojectsandhasalsorevolutionized/transformedtheverybasisofcompensation,thus,pavingthewayfortrueinclusive growth.
In the area of environmental preservation also, adoption of new and modern technologies have helped us in putting our organization firmlyonthepathofSustainableDevelopment.Apartfromthefactsmentionedabove,adoptionoftoolslikeRemotesensing,GISandGPShasresultedintheselectionofmostoptimumrouteforourtransmissionlines,thus,avoiding/minimizingenvironmentallysensitiveareassuch as Forest, Protect Areas, Important wetlands, IBAs, Elephant corridors etc. These measures not only reduced the environmental risks associatedwithprojectmanagementbutalsoprovedtobefinanciallyrewarding.
Anotherkeyinitiativetoreduceourenvironmentfootprintincludesupgradationofexistinglineorreconductoringthemwithadvancedconductors to enhance the carrying capacity of such lines. This has helped in saving lot of forest and tree cover which might have been affected,ifnewlinesweretobeconstructedforsuchenhancedtransmissionofpower.OtherinitiativesinsuchdirectionaremakingRainwaterharvestinganintegralpartofsubstationdesign,installationofLEDbulbs&solarstreetlightinginsubstation,fuelcatalystsdevicesfor DG sets etc. further strengthened our agenda of sustainable development. Recognizing the importance of solar power in combating Climatechangeandin-linewithGOI’scommitmenttowardsParisAgreement,POWERGRIDisintheprocessofinstalling5MWpRooftopSolarPVSystemscoveringmorethan50locationsinitspremises.Thisinitiativewillresultinsavingof7-8millionunits(MUs)ofGridconnectedenergyperannum,thereby,reducingatmosphericemissionof35916mtofCO2peryear.AnothersignificantinnovationdonebyPOWERGRIDistheuseofinductivepowerinearthwireforpoweringoftelecomantennas.Thisinductivepowerwhichotherwisegoeswaste will eliminate the use of DG sets, a constant source of pollution and GHGs emission. The technology has been successfully tested at pilot scale and has been recently approved by the Regulator for its implementation at commercial scale.
FOREIGN EXCHANGE EARNINGS AND OUTGO
Foreign Exchange Earnings(i) Consultancy Fee 24.89
Total 24.89Foreign Exchange outgo(i) Capital goods and Spare Parts 4,788.68(ii) Interest 972.81(iii) Others 74.88
Total 5,836.37
For and on behalf of the Board of Directors
(Ravi P.Singh) Director (Personnel) & CMD
DIN:05240974Place: New DelhiDate: 19th July, 2019
(` in Crore)
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ANNEXURE -IV TO THE DIRECTORS’ REPORTCOMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIEES ACT, 2013 ON THE FINANCIAL STATEMENTS OF POWER GRID CORPORATION OF INDIA LIMITED FOR THE YEAR ENDED 31 MARCH, 2019ThepreparationoffinancialstatementsofPowerGridCorporationofIndiaLimitedfortheyearended31March,2019inaccordancewiththefinancialreportingframeworkprescribedundertheCompaniesAct,2013(Act)istheresponsibilityofthemanagementofthecompany.ThestatutoryauditorsappointedbytheComptrollerandAuditorGeneralofIndiaunderSection139(5)oftheActareresponsibleforexpressingopiniononthefinancialstatementsundersection143oftheActbasedonindependentauditinaccordancewithstandardsonauditingprescribedunder Section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 29.05.2019.I,onthebehalfoftheComptrollerandAuditorGeneralofIndia,haveconductedasupplementaryauditofthefinancialstatementsofPowerGridCorporation of India Limited for the year ended 31 March 2019 under Section 143(6)(a) of the Act. This supplementary audit has been carried outindependentlywithoutaccesstotheworkingpapersofthestatutoryauditorsandislimitedprimarilytoinquiriesofthestatutoryauditorsandcompanypersonnelandaselectiveexaminationofsomeoftheaccountingrecords.On the basis ofmy supplementary audit nothing significant has come tomy knowledgewhichwould give rise to any comment upon orsupplement to statutory auditors report under section 143(6)(b) of the Act.
For and on behalf of the Comptroller & Auditor General of India
Sd/-(Rajdeep Singh)
Principal Director of Commercial Audit &Ex-officio Member, Audit Board — III,
New Delhi
Place: New DelhiDated: 11 July, 2019
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COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READ WITH SECTION 129(4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OF POWER GRID CORPORATION OF INDIA LIMITED FOR THE YEAR ENDED 31 MARCH, 2019.ThepreparationofconsolidatedfinancialstatementsofPowerGridCorporationofIndiaLimitedfortheyearended31March,2019inaccordancewiththefinancialreportingframeworkprescribedundertheCompaniesAct,2013(Act)istheresponsibilityofthemanagementofthecompany.The statutory auditor appointed by the Comptroller and Auditor General of India under Section 139(5) read with Section 129(4) of the Act is responsibleforexpressingopiniononthefinancialstatementsunderSection143readwithSection129(4)oftheActbasedonindependentaudit in accordance with the standards on auditing prescribed under Section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 29.05.2019.I,onbehalfoftheComptrollerandAuditorGeneralofIndia,haveconductedasupplementaryauditoftheconsolidatedfinancialstatementsof Power Grid Corporation of India Limited for the year ended 31 March, 2019 under Section 143(6)(a) read with Section 129(4) of the Act. Weconducteda supplementaryaudit of thefinancial statementsofPowerGridCorporationof India Limited,PowergridParli TransmissionLimitedandPowergridVizagTransmissionLimitedbutdidnotconductsupplementaryauditofthefinancialstatementsofsubsidiaries,associatecompaniesandjointlycontrolledentitieslistedinAnnexurefortheyearendedonthatdate.Further,Section139(5)and143(6)(a)oftheActare not applicable to Powerlinks Transmission Limited, Torrent Power Grid Limited, Jaypee Powergrid Limited, Parbati Koldam Transmission Company Limited and Teestavalley Power Transmission Limited being private entities and Power Transmission Company Nepal Limited being incorporated in Foreign country under the respective laws, for appointment of their Statutory Auditor and for conduct of supplementary audit. Accordingly, Comptroller and Auditor General of India has neither appointed the Statutory Auditors nor conducted the supplementary audit of these companies. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors andislimitedprimarilytoinquiriesofthestatutoryauditorsandcompanypersonnelandaselectiveexaminationofsomeoftheaccountingrecords.On the basis ofmy supplementary audit nothing significant has come tomy knowledgewhichwould give rise to any comment upon orsupplement to statutory auditors’ report under section 143(6)(b) of the Act.
For and on behalf of the Comptroller & Auditor General of India
Sd/-
(Rajdeep Singh) Principal Director of Commercial Audit &
Ex-officio Member, Audit Board — III,New DelhiPlace: New Delhi
Dated: 11 July, 2019
ANNEXURE 1List of Subsidiaries Associate Companies and Jointly Controlled Entities whose financial statements were not audited by the Comptroller and Auditor General of IndiaA. Subsidiaries incorporated in India: 1. Powergrid NM Transmission Limited 2. PowergridUnchaharTransmissionLimited 3. Powergrid Kala Amb Transmission Limited 4. Powergrid Jabalpur Transmission Limited 5. PowergridWaroraTransmissionLimited 6. Powergrid Southern interconnector Transmission System Limited 7. Powergrid Medinipur Jeerat Transmission Limited 8. PowergridMithilanchalTransmissionLimited 9. Powergrid Varanasi Transmission System Limited 10. Powergrid Vemagiri Transmission Limited 11. Powergrid Jawaharpur Firozabad Transmission LimitedB. Joint Ventures incorporated in India: 1. North East Transmission Company Limited 2. National High Power Test Laboratory Private Limited 3. Kalinga Bidyut Prasaran Nigam Private Limited 4. Bihar Grid Company Limited 5. Cross Border Power Transmission Company Limited 6. RINL Powergrid TLT Private Limited
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FORM NO. MR-3SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2019[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(AppointmentandRemunerationofManagerialPersonnel)Rules,2014]
To,The Members,Power Grid Corporation of India LimitedB-9, Qutab Institutional Area, Katwaria Sarai, New Delhi-110016WehaveconductedtheSecretarialAuditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyPower Grid Corporation of India Limited [CIN: L40101DL1989GOI038121] (hereinafter called the “Company”) having its Registered Office at B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi -110016. Secretarial Audit was conducted in a manner that provided usareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.BasedonourverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbythecompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,weherebyreportthatinouropinion,thecompanyhas,duringtheauditperiodcoveringthefinancialyearendedon,March 31, 2019 complied withthestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:Wehaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyfortheFinancialYear ended on March 31, 2019, according to the provisions of:(i) TheCompaniesAct,2013(theAct)andtherulesmadethereunder;(ii) TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;(iii) TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;(iv) ForeignExchangeManagementAct,1999andtherulesandregulationsmadethereunder to theextentofForeignDirect Investment,
OverseasDirectInvestmentandExternalCommercialBorrowings;(v) ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’):-
a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;c) TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009d) TheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014;[Not applicable as the Company
has not offered any shares or granted any options pursuant to any employee benefit scheme during the period under review];
e) TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;f) TheSecurities andExchangeBoardof India (Registrars to an Issue andShareTransferAgents)Regulations,1993 regarding the
CompaniesActanddealingwithclient;g) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;[Not Applicable as the Company has
not delisted/propose to delist its equity shares from any Stock Exchange during the financial year under review]; andh) TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,2018;[Not Applicable as the Company has not
bought back/propose to buy-back any of its securities during the financial year under review];(vi)Asconfirmedandcertifiedbythemanagement,followinglawisspecificallyapplicabletotheCompanybasedontheSectors/Businesses:
(a) The Electricity Act,2003 and Rules and Regulations made there under. ForthecompliancesofLabourLaws&otherGeneralLaws,ourexaminationandreportingisbasedonthedocuments,recordsandfilesas
producedandshowntousandtheinformationandexplanationsasprovidedtous,bytheofficersandmanagementoftheCompanyandtothebestofourjudgmentandunderstandingoftheapplicabilityofthedifferentenactmentsupontheCompany,inouropinionthereareadequatesystemsandprocessesexistintheCompanytomonitorandensurecompliancewithapplicableGenerallawsandLabourLaws.
ThecompliancebytheCompanyofapplicablefinanciallaws,likedirectandindirecttaxlaws,hasnotbeenreviewedinthisauditsincethesamehavebeensubjecttoreviewbythestatutoryfinancialauditorandotherdesignatedprofessionals.
We have also examined compliance with the applicable Regulations / clauses of the following: i. Secretarial Standards issued by The Institute of Company Secretaries of India. ii. TheListingAgreementsenteredintobytheCompanywithNationalStockExchangeofIndiaLimitedandBSELimitedforEquityas
well as Bonds.
ANNEXURE-VTOTHEDIRECTORS’REPORT
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Sub-clause3B Toinvestand/oractasProjectManagementConsultantinenergyefficiency,energyconservationprojects,etc.3C To develop Smart Grid infrastructure3D To develop Electric Vehicle Charging Infrastructure
iii. TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015;iv. Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs) issued by the Department of Public Enterprises vide
theirOMNo.18(8)/2005-GMdated14th May, 2010.v. GuidelinesonCapitalRestructuringofCentralPublicSectorEnterprises(CPSEs)asstipulatedintheO.M.FNo.5/2/2016-Policydated
27th May, 2016 issued by Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, Government of India. During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc.
mentioned above subject to the following observation: Provisions of Regulation 17(1) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 and Para 3.1.4 of DPE Guidelines on Corporate Governance with regard to Composition of the Board of Directors have not been complied with during the financial year under review.
We further report that • Subjecttoourobservationasabove,theBoardofDirectorsoftheCompanyisconstitutedwithExecutiveDirectors,Non-Executive
DirectorsandIndependentDirectorswiththeexceptionofrequisitenumberofIndependentDirectorsontheBoardoftheCompanyas on 31st March, 2019. The changes in the composition of the Board of Directors, that took place during the period under review, were carried out in compliance with the provisions of the Act.
• AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendaysinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethe meeting and for meaningful participation at the meeting.
• DecisionsoftheBoard/Committeethereofarecarriedwithconsensus.• Aspertherecords,theCompanyfiledalltheforms,returns,documentsandresolutionsaswererequiredtobefiledwiththeRegistrar
ofCompaniesandotherauthoritiesandalltheformalitiesrelatingtothesameisincompliancewiththeAct/Regulations. We further report thatthereareadequatesystemsandprocessesinthecompanycommensuratewiththesizeandoperationsofthe
company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. We further report thatduringtheauditperiodthecompanyhasfollowingevents/actionshavingamajorbearingontheCompany’s
affairsinpursuanceoftheabovereferredlaws,rules,regulations,guidelines,standardsetc.:-i. The Company has altered Clause 3A of Object Clause of Memorandum of Association by way of amendment vide Special Resolution
passedthroughPostBallotdated19.12.2018;andalsoinsertedfollowingthreenewSub-clauses:
ii. TheCompanyhasapprovedincreaseinFPIlimituptoanaggregateof35%ofitspaid-upcapitalthroughPostalBallot.iii. TheBoardoftheCompany,initsmeetingheldon29.05.2019hasrecommendedafinaldividendof`2.50pershare(i.e.@25%onthe
paid-upequitysharecapital)forthefinancialyear2018-19subjecttotheapprovaloftheshareholdersattheensuingAnnualGeneralMeetingoftheCompany.ThisfinaldividendisinadditiontotheInterimDividendof`5.83pershare(i.e.@58.30%onthepaid-upequitysharecapital)paidon22ndMarch,2019forthefinancialyear2018-19.
iv. Company’s Board of Directors in its meeting held on 16thAugust,2017accordedapprovalfor initiatingprocedureforwindingup/removalofthenameofKalingaBidyutPrasaranNigamPrivatelimited,aJointVentureCompanyunderfasttrackExitmodeofRegistrarof Companies (ROC).
v. Company’s Board of Directors in its meeting held on 1stMay2018accordedinprincipleapprovaltocloseRINLPowergridTLTPrivateLimited, a JV of the Company and seek consent of another JV Partner Rashtriya Ispat Nigam Limited. Accordingly, provision for diminution in value of investment has been made.
vi. Mr.VivekKumarDewangan,JointSecretary&FinancialAdvisor(JS&FA),MinistryofPowerwasappointedasGovt.NomineeDirectorontheBoardoftheCompanywitheffectfrom26.04.2018byMinistryofPower,GovernmentofIndia.HeceasedtobeaDirectorw.e.f.07.06.2019.
vii. Mr. Prabhakar Singh, ceased to be a Director (Projects) on the Board of the Company due to superannuationwith effect from30.06.2018.
viii. Ms. Seema Gupta, Director (Operations) was entrusted with the additional Charge for the post of the Director (Projects) w.e.f. 09.07.2018.
ix. Mr. Sunil Kumar Sharmawas appointed asNon-Executive, IndependentDirector on the Board of theCompanywith effect from23.07.2018.
x. Mrs.AnthiyaMahalakshmiRajaramwasappointedasNon-Executive,IndependentDirectorontheBoardoftheCompanywitheffectfrom26.07.2018.
xi. Mr.RajeevKumarChauhan,ExecutiveDirector,POWERGRIDwasappointedtothepostofDirector(Projects),POWERGRIDontheBoardoftheCompanywitheffectfrom23.08.2018viceMs.SeemaGupta,Director(Operations),whodemittedtheadditionalchargeofthepostofDirector(Projects)on23.08.2018intermsoftheGoIorderdt.09.07.2018.
87
xii. The Company, being successful bidder under Tariff based competitive bidding, has acquired Jawaharpur Firozabad TransmissionLimited (JFTL), the Project SPV to establish Transmission System for construction of 400 kV substation at Firozabad along with associated Transmission Lines.
xiii. CessationofMr.I.S.Jha,ExecutiveDirectorfromthepostofCMDoftheCompanywitheffectfrom21.01.2019.xiv. ShriRaviP.Singh,Director(Personnel)hasbeenassignedwithadditionalchargeofpostofCMD,POWERGRIDw.e.f.21.01.2019(AN)
foraperiodof03months.MoP,videletterdated13.06.2019,hasfurtherextendedthetenureofShriRaviP.SinghasCMDforaperiodofsixmonthsw.e.f.21.04.2019ortillappointmentofregularincumbentoruntilfurtherorders,whichevereventoccursearliest.
xv. CessationofMs.Bharati,Non-Executive,NomineeDirectorfromtheBoardoftheCompanywitheffectfrom13.02.2019.xvi. Mr.GhanshyamPrasad,ChiefEngineer,MinistryofPowerwasappointedasNon-Executive,NomineeDirectorontheBoardofthe
Companywitheffectfrom01.03.2019.xvii. Duringtheauditperiod,i.e.F.Y.2018-19,theCompanyhasissuedbondsof`5487.50Croreasperdetailsmentionedbelow:-
Sr. No.
Type of Bonds Amount(` in crore)
1. Secured,Non-Convertible,Non-Cumulative,Redeemable,TaxablePOWERGRIDBondLXIIIssue 2,000.002. Unsecured,Non-Convertible,Non-Cumulative,Redeemable,TaxableGOIFullyServicedBondsIssueSeries-I 3,487.50
For Kumar Naresh Sinha & AssociatesCompany Secretaries
CS Naresh Kumar Sinha (Proprietor)
FCS: 1807 C.P. No.: 14984Place: NOIDA
Date: 27.06.2019
Note:Thisreportistobereadwithourletterofevendatewhichisannexedas“Annexure-A” and forms an integral part of this report.
88
Annexure-A
To,The MembersPower Grid Corporation of India LimitedB-9, Qutab Institutional Area, Katwaria Sarai,New Delhi-110016Our Report of even date is to be read along with this letter.1. MaintenanceofsecretarialrecordistheresponsibilityofthemanagementoftheCompany.Ourresponsibilityistoexpressanopinionon
these secretarial records based on our audit.2. Wehavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthe
contentsof the secretarial records.Theverificationwasdoneon the random testbasis toensure that correct factsare reflected insecretarialrecords.Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.
3. WehavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsoftheCompany.4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and regulations and
happening of events etc.5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management.
Ourexaminationwaslimitedtotheverificationofproceduresonrandomtestbasis.6. TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityofthecompanynoroftheefficacyoreffectivenesswithwhich
themanagementhasconductedtheaffairsoftheCompany.
For Kumar Naresh Sinha & AssociatesCompany Secretaries
Sd/-
CS Naresh Kumar Sinha (Proprietor)
FCS: 1807 C.P. No.: 14984
Place: NOIDADate: 27.06.2019
89
FORM NO. MGT 9EXTRACT OF ANNUAL RETURNasonfinancialyearendedon31.03.2019
PursuanttoSection92(3)oftheCompaniesAct,2013andRule12(1)oftheCompany(Management&Administration)Rules,2014.
I REGISTRATION & OTHER DETAILS:
i CIN L40101DL1989GOI038121
ii Registration Date 23-Oct-89iii Name of the Company POWERGRIDCORPORATIONOFINDIALIMITEDiv Category/Sub-categoryoftheCompany COMPANYLIMITEDBYSHARES/UNIONGOVERNMENTCOMPANYv AddressoftheRegisteredoffice
&contactdetailsB-9,QUTABINSTITUTIONALAREA,KATWARIASARAI,NEWDELHI-110016.Tel:011-26560112,26560121,26564812,26564892Fax:011-26601081
vi Whetherlistedcompany YESvii Name,Address&contactdetailsofthe
Registrar&TransferAgent,ifany.KarvyFintechPrivateLimited,KarvySeleniumTowerB,PlotNo.31&32,Gachibowli,FinancialDistrict,Nanakramguda,Serilingampally,Hyderabad-500032.Tele:+91-40-67162222,Fax:+91-40-23420814, TollfreeNo.1800-345-4001
II PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated
III PARTICULARS OF HOLDING , SUBSIDIARY & ASSOCIATE COMPANIES
SL No
Name & Description of main products/services NIC Code of the Product /service
% to total turnover of the company
1 Transmission 35107 96.27%
Sl No
Name & Address of the Company CIN/GLN HOLDING/ SUBSIDIARY/
ASSOCIATE
% OF SHARES
HELD
APPLICABLE SECTION
1 POWERGRID Vemagiri Transmission Limited Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016.
U40300DL2011GOI217975 Subsidiary 100 Section2(87)
2 POWERGRID NM Transmission Limited Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016.
U40106DL2011GOI219542 Subsidiary 100 Section2(87)
3 POWERGRID Vizag Transmission Limited Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016.
U40300DL2011GOI228136 Subsidiary 100 Section2(87)
4 POWERGRID Unchahar Transmission Limited Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016.
U40300DL2012GOI246341 Subsidiary 100 Section2(87)
5 POWERGRID Kala Amb Transmission Limited Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016.
U40106DL2013GOI256048 Subsidiary 100 Section2(87)
6 POWERGRID Jabalpur Transmission Limited Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016.
U40300DL2014GOI270433 Subsidiary 100 Section2(87)
7 POWERGRID Warora Transmission Limited Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016.
U40300DL2014GOI269918 Subsidiary 100 Section2(87)
8 POWERGRID Parli Transmission Limited Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016.
U40109DL2014GOI269652 Subsidiary 100 Section2(87)
9 POWERGRID Southern Interconnector Transmission System Limited Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016.
U40106DL2015GOI278746 Subsidiary 100 section2(87)
10 POWERGRID Medinipur-Jeerat Transmission Limited Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016.
U40300DL2016GOI290075 Subsidiary 100 Section2(87)
ANNEXURE-VI - TO THE DIRECTORS’ REPORT
90
Sl No
Name & Address of the Company CIN/GLN HOLDING/ SUBSIDIARY/
ASSOCIATE
% OF SHARES
HELD
APPLICABLE SECTION
11 POWERGRID Mithilanchal Transmission Limited Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016.
U40300DL2017GOI310436 Subsidiary 100 Section2(87)
12 POWERGRID Varanasi Transmission System LimitedRegd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016.
U40100DL2017GOI310478 Subsidiary 100 Section2(87)
13 POWERGRID Jawaharpur Firozabad Transmission Limited Regd.Office:B-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi–110016.
U40100DL2018GOI337674 Subsidiary 100 Section2(87)
14 Powerlinks Transmission Limited Regd.Office:10thFloor,DLFTowerA,DistrictCenterJasola,NewDelhi-110025
U40105DL2001PLC110714 Joint Venture 49 Section 2 (6)
15 Torrent Power Grid Limited Regd.Office:''SAMANVAY'',600,Tapovan,Ambawadi,Ahemdabad,Gujarat-380015
U40104GJ2005PLC046660 Joint Venture 26 Section 2 (6)
16 Jaypee Powergrid Limited Regd.Office:'JAHouse',63,BasantLok,VasantVihar,New Delhi 110057
U40101DL2006PLC154627 Joint Venture 26 Section 2 (6)
17 North East Transmission Company Limited Regd.Office:Vill-EastChampamura,BypassRoad,NearAsianPaintGodown,P/O-OldAgartala,Agartala,WestTripura,TR-799008
U40101TR2008PLC008249 Joint Venture 26 Section 2 (6)
18 Parbati Koldam Transmission Company Limited Regd.Office:5thFloor,FF-1AJMDGalleria,Sector-48,SohnaRoad,Gurgaon,Haryana-122018
U40108HR2002PLC071677 Joint Venture 26 Section 2 (6)
19 Teestavalley Power Transmission Limited Regd.Office:2ndFloor,VijayaBuilding17,BarakhambaRoad,ConnaughtPlace,NewDelhi-110001
U40109DL2006SGC151871 Joint Venture 28.23 Section 2 (6)
20 National High Power Test Laboratory Private Limited Regd.Office:NHPTL,POWERGRIDComplex,765/400K.V. Substation, Khimlasa Road Bina Sagar, MP-470113
U73100MP2009PTC047744 Joint Venture 20 Section 2 (6)
21 Energy Efficiency Services Limited Regd.Office:NFLBuilding,5th&6thFloor,Core-III,ScopeComplex,LodhiRoad,NewDelhi-110003
U40200DL2009PLC196789 Joint Venture 5.58 Section 2 (6)
22 Bihar Grid Company Limited Regd.Office:2ndFloor,AlankarPlace,BoringRoad,Patna,Bihar800001
U40100BR2013PLC019722 Joint Venture 50 Section 2 (6)
23 Kalinga Bidyut Prasaran Nigam Private Limited Regd.Office:PlotNo.4,MaujaChandarsekharpur,Unit-41,Bhubaneswar,Puri,Odisha751021
U40102OR2012PTC016411 Joint Venture 50 Section 2 (6)
24 Cross Border Power Transmission Company Limited Regd.Office:C/OIL&FSSecuritiesServicesLtd.,10,Community Center, 2nd Floor, East of Kailash, New Delhi -110065
U40102DL2006PLC156738 Joint Venture 26 Section 2 (6)
25 RINL POWERGRID TLT Private Limited (RPTPL) Regd.Office:RoomNo.31,'B'Block,ProjectOffice,VisakhapatnamSteelPlant,Visakhapatnam-530031,Andhra Pradesh
U28121AP2015PTC097211 Joint Venture 50 Section 2 (6)
26 Power Transmission Company Nepal Limited c/oNepalElectricityAuthority,DurbarMarg,Kathmandu, Nepal
- Joint Venture 26 Section 2 (6)
Note:GridConductorsLimited(GCL),awhollyownedsubsidiaryofPOWERGRIDwasincorporatedon15.09.2015.TheCompanydidnotcarryoutanybusinessactivitysinceincorporationandanapplicationtostrikeoffthenameoftheCompanythroughFastTrackExitSchemewasfiledwithRegistrarofCompanies(ROC).RegistrarofCompaniesvideNoticedated09.08.2018hasapprovedstrikingoffthenameofCompanyfrom its records.
91
CATE
GO
RY
COD
ECA
TEG
ORY
OF
SHAR
EHO
LDER
NO
. OF
SHAR
ES H
ELD
AT
THE
BEG
INN
ING
OF
THE
YEAR
01/
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018
NO
. OF
SHAR
ES H
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AT
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END
OF
THE
YEAR
31
/03/
2019
%
CHAN
GE
DU
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THE
YEAR
DEM
ATPH
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ALTO
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% O
F TO
TAL
SHAR
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DEM
ATPH
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L %
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(I
)
(I
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(I
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)
(VI)
(VII
)
(VII
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OM
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(a)
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00
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(b)
CentralGovernment/
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vern
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t(s)
2977
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590
2977
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5956
.91
2896495942
02896495942
55.3
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(c)
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b-To
tal A
(1)
:29
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56.9
128
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5942
028
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5942
55.3
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.54
(2)
FORE
IGN
(a)
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00
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00
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(b)
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00
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00
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00
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00
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Sub-
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00
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Tota
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7731
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56.9
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55.3
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(B)
PUBL
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SHAR
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)INSTITUTIONS
(a)
MutualFunds/UTI
489078542
0489078542
9.35
3466
2955
60
3466
2955
66.
63-2.72
(b)
FinancialInstitutions/
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s64
3105
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6431
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1.23
65212285
165212286
1.25
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00
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00
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(e)
Insu
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273570989
0273570989
5.23
3511
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76.
711.48
(f)
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21.2
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of t
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92
CATE
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COD
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OF
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NO
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NO
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SHAR
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END
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THE
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%
CHAN
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DEM
ATPH
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ATPH
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9359
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(a)
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121508490
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2.32
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Sub-
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26.
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1459
551
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324
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354
4.62
-1.4
4To
tal B
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B(2)
:22
5423
1535
4335
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3509
3706
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31.
54To
tal (
A+B)
:
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5231
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0.00
5231
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4439
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5231
5896
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3154
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93
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Shar
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9%
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shar
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the
year
NO
of s
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of t
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of t
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of s
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NO
of s
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of t
otal
sh
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o
f the
com
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% o
f sha
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pled
ged
enc
umbe
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to
tota
l sha
res
1PR
ESID
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OF IN
DIA
2876044959
54.9
70
2,79
5,22
6,14
253
.43
0-1.54
2PR
ESID
ENT
OF IN
DIA
101269800
1.94
0101,269,800
1.94
00.
00To
tal
2977
3147
5956
.91
02896495942
55.3
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-1.54
Sl N
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Year
01/
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Cum
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the
year
31/
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019
NO
of s
hare
s%
of t
otal
sha
res
of t
he c
ompa
nyN
O o
f sha
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% o
f tot
al
shar
es o
f the
co
mpa
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the
begi
nnin
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the
year
2977
3147
5956
.91
2977
3147
5956
.91
Saleon22/06/2018
-33402576
-0.64
2943912183
56.2
7Purchaseon06/07/2018
3464718
0.07
2947
3769
0156
.34
Saleon22/02/2019
-50880959
-0.97
2896495942
55.3
7At
the
end
of th
e ye
ar2896495942
55.3
72896495942
55.3
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(ii)
SH
ARE
HO
LDIN
G O
F PR
OM
OTE
RS
(iii)
CH
ANG
E IN
PRO
MO
TERS
’ SH
AREH
OLD
ING
( S
PECI
FY I
F TH
ERE
IS N
O C
HAN
GE)
94
Shar
ehol
ding
at t
he
begg
inni
ng o
f the
Yea
rCu
mul
ativ
e Sh
areh
oldi
ng
duri
ng th
e Ye
ar
Slno
Folio
/Dpi
d-Cl
ient
idCa
tego
ryTy
peN
ame
of th
e Sh
are
Hol
der
No
of
Shar
es%
of t
otal
sh
ares
of
the
com
pany
Dat
eIn
crea
se/
Dec
reas
e in
sha
re
hold
ing
Reas
onN
o of
Sh
ares
% o
f tot
al
shar
es o
f the
co
mpa
ny
1AAACL0582H
LTD
Open
ing
Bala
nce
LIFEINSURANCE
CORP
ORAT
ION
OF
INDIA-ULIF0022
0091
307084255
5.87
31/03/2018
307084255
5.87
Purc
hase
06/04/2018
3435
070
Tran
sfer
3105
1932
55.
94Pu
rcha
se13/04/2018
3600
Tran
sfer
3105
2292
55.
94Sa
le13/04/2018
-3600
Tran
sfer
3105
1932
55.
94Pu
rcha
se11/05/2018
8209070
Tran
sfer
318728395
6.09
Purc
hase
18/05/2018
1267
3100
Tran
sfer
3314
0149
56.
33Pu
rcha
se25/05/2018
11008141
Tran
sfer
3424
0963
66.
55Pu
rcha
se01/06/2018
9802500
Tran
sfer
3522
1213
66.
73Pu
rcha
se08/06/2018
9774828
Tran
sfer
361986964
6.92
Purc
hase
15/06/2018
11105618
Tran
sfer
373092582
7.13
Purc
hase
22/06/2018
8406151
Tran
sfer
381498733
7.29
Purc
hase
29/06/2018
9396
127
Tran
sfer
390894860
7.47
Purc
hase
06/07/2018
1655
926
Tran
sfer
392550786
7.50
Clos
ing
Bala
nce
30/03/2019
392550786
7.50
2AAAAI0038F
MUT
Open
ing
Bala
nce
ICICIPRUDENTIAL
EQUITYARBITRAGE
FUND
220516548
4.22
31/03/2018
220516548
4.22
Purc
hase
06/04/2018
101978
Tran
sfer
220618526
4.22
Sale
06/04/2018
-300141
Tran
sfer
220318385
4.21
Purc
hase
13/04/2018
527
Tran
sfer
220318912
4.21
Sale
13/04/2018
-119356
Tran
sfer
2201
9955
64.
21Sa
le20/04/2018
-1033389
Tran
sfer
2191
6616
74.
19Pu
rcha
se27/04/2018
39Tr
ansf
er21
9166
206
4.19
Sale
27/04/2018
-667016
Tran
sfer
218499190
4.18
Purc
hase
04/05/2018
668
Tran
sfer
218499858
4.18
Sale
04/05/2018
-283485
Tran
sfer
218216373
4.17
Purc
hase
11/05/2018
2965
33Tr
ansf
er218512906
4.18
Sale
11/05/2018
-1900003
Tran
sfer
2166
1290
34.
14Pu
rcha
se18/05/2018
4195
Tran
sfer
216617098
4.14
Sale
18/05/2018
-16130632
Tran
sfer
200486466
3.83
Purc
hase
25/05/2018
771
Tran
sfer
200487237
3.83
Sale
25/05/2018
-13275792
Tran
sfer
187211445
3.58
(iv)
SH
AREH
OLD
ING
PAT
TERN
OF
TOP
10 S
HAR
EHO
LDER
S BE
TWEE
N 3
1/03
/201
8 AN
D 3
0/03
/201
9 (O
THER
THAN
PRM
OTE
R, D
IREC
TOR,
AD
R AN
D G
DR)
95
Shar
ehol
ding
at t
he
begg
inni
ng o
f the
Yea
rCu
mul
ativ
e Sh
areh
oldi
ng
duri
ng th
e Ye
ar
Slno
Folio
/Dpi
d-Cl
ient
idCa
tego
ryTy
peN
ame
of th
e Sh
are
Hol
der
No
of
Shar
es%
of t
otal
sh
ares
of
the
com
pany
Dat
eIn
crea
se/
Dec
reas
e in
sha
re
hold
ing
Reas
onN
o of
Sh
ares
% o
f tot
al
shar
es o
f the
co
mpa
ny
Purc
hase
01/06/2018
1952
Tran
sfer
187213397
3.58
Sale
01/06/2018
-43840062
Tran
sfer
1433
7333
52.
74Pu
rcha
se08/06/2018
7816
Tran
sfer
143381151
2.74
Sale
08/06/2018
-4387071
Tran
sfer
138994080
2.66
Purc
hase
15/06/2018
4692
Tran
sfer
138998772
2.66
Sale
15/06/2018
-2780362
Tran
sfer
136218410
2.60
Purc
hase
22/06/2018
12817
Tran
sfer
1362
3122
72.
60Sa
le22/06/2018
-4369275
Tran
sfer
131861952
2.52
Purc
hase
29/06/2018
29754836
Tran
sfer
161616788
3.09
Sale
29/06/2018
-3055000
Tran
sfer
158561788
3.03
Purc
hase
06/07/2018
2415
441
Tran
sfer
1609
7722
93.08
Sale
06/07/2018
-9301074
Tran
sfer
1516
7615
52.
90Pu
rcha
se13/07/2018
2399
414
Tran
sfer
1540
7556
92.
95Sa
le13/07/2018
-3899033
Tran
sfer
1501
7653
62.87
Purc
hase
20/07/2018
7056
322
Tran
sfer
157232858
3.01
Sale
20/07/2018
-2029749
Tran
sfer
1552
0310
92.
97Pu
rcha
se27/07/2018
5943
124
Tran
sfer
1611
4623
33.08
Sale
27/07/2018
-4374722
Tran
sfer
1567
7151
13.
00Pu
rcha
se03/08/2018
2514
5Tr
ansf
er15
6796
656
3.00
Sale
03/08/2018
-7723231
Tran
sfer
1490
7342
52.85
Purc
hase
10/08/2018
1133
Tran
sfer
149074558
2.85
Sale
10/08/2018
-1557177
Tran
sfer
147517381
2.82
Purc
hase
17/08/2018
1050
Tran
sfer
147518431
2.82
Sale
17/08/2018
-825505
Tran
sfer
1466
9292
62.80
Purc
hase
24/08/2018
1504
10Tr
ansf
er146843336
2.81
Sale
24/08/2018
-1024323
Tran
sfer
145819013
2.79
Purc
hase
31/08/2018
329842
Tran
sfer
146148855
2.79
Sale
31/08/2018
-3662043
Tran
sfer
142486812
2.72
Purc
hase
07/09/2018
2808
Tran
sfer
142489620
2.72
Sale
07/09/2018
-2637547
Tran
sfer
139852073
2.67
Purc
hase
14/09/2018
8082
Tran
sfer
139860155
2.67
Sale
14/09/2018
-260918
Tran
sfer
1395
9923
72.
67Pu
rcha
se21/09/2018
16228
Tran
sfer
1396
1546
52.
67Sa
le21/09/2018
-6497818
Tran
sfer
1331
1764
72.
54Pu
rcha
se28/09/2018
4743
Tran
sfer
1331
2239
02.
54Sa
le28/09/2018
-56680
Tran
sfer
1330
6571
02.
54
96
Shar
ehol
ding
at t
he
begg
inni
ng o
f the
Yea
rCu
mul
ativ
e Sh
areh
oldi
ng
duri
ng th
e Ye
ar
Slno
Folio
/Dpi
d-Cl
ient
idCa
tego
ryTy
peN
ame
of th
e Sh
are
Hol
der
No
of
Shar
es%
of t
otal
sh
ares
of
the
com
pany
Dat
eIn
crea
se/
Dec
reas
e in
sha
re
hold
ing
Reas
onN
o of
Sh
ares
% o
f tot
al
shar
es o
f the
co
mpa
ny
Purc
hase
05/10/2018
3199
63Tr
ansf
er133385673
2.55
Sale
05/10/2018
-156153
Tran
sfer
1332
2952
02.
55Pu
rcha
se12/10/2018
4166
22Tr
ansf
er13
3646
142
2.55
Sale
12/10/2018
-4991
Tran
sfer
1336
4115
12.
55Pu
rcha
se19/10/2018
380121
Tran
sfer
1340
2127
22.
56Pu
rcha
se26/10/2018
3145
1Tr
ansf
er13
4052
723
2.56
Sale
26/10/2018
-304440
Tran
sfer
133748283
2.56
Purc
hase
02/11/2018
5655
69Tr
ansf
er134313852
2.57
Sale
02/11/2018
-7020
Tran
sfer
134306832
2.57
Purc
hase
09/11/2018
1655
Tran
sfer
134308487
2.57
Sale
09/11/2018
-5720
Tran
sfer
1343
0276
72.
57Pu
rcha
se16/11/2018
1315
304
Tran
sfer
135618071
2.59
Sale
16/11/2018
-505269
Tran
sfer
135112802
2.58
Purc
hase
23/11/2018
9597
Tran
sfer
1351
2239
92.58
Sale
23/11/2018
-981360
Tran
sfer
1341
4103
92.
56Pu
rcha
se30/11/2018
3165
Tran
sfer
1341
4420
42.
56Sa
le30/11/2018
-3585598
Tran
sfer
130558606
2.50
Purc
hase
07/12/2018
2292
6Tr
ansf
er130581532
2.50
Sale
07/12/2018
-1776808
Tran
sfer
128804724
2.46
Purc
hase
14/12/2018
8866
Tran
sfer
128813590
2.46
Sale
14/12/2018
-881714
Tran
sfer
127931876
2.45
Purc
hase
21/12/2018
5416
Tran
sfer
1279
3729
22.
45Sa
le21/12/2018
-34512
Tran
sfer
127902780
2.44
Purc
hase
28/12/2018
117
Tran
sfer
127902897
2.44
Sale
28/12/2018
-12129301
Tran
sfer
1157
7359
62.
21Pu
rcha
se31/12/2018
4686824
Tran
sfer
1204
6042
02.
30Sa
le31/12/2018
-5980
Tran
sfer
1204
5444
02.
30Pu
rcha
se04/01/2019
6946
Tran
sfer
120461386
2.30
Sale
04/01/2019
-17206
Tran
sfer
120444180
2.30
Purc
hase
11/01/2019
254958
Tran
sfer
120699138
2.31
Sale
11/01/2019
-280741
Tran
sfer
120418397
2.30
Purc
hase
18/01/2019
30978
Tran
sfer
1204
4937
52.
30Sa
le18/01/2019
-3997297
Tran
sfer
116452078
2.23
Purc
hase
25/01/2019
2080
Tran
sfer
116454158
2.23
Sale
25/01/2019
-2334405
Tran
sfer
1141
1975
32.18
Purc
hase
01/02/2019
5256
Tran
sfer
1141
2500
92.18
97
Shar
ehol
ding
at t
he
begg
inni
ng o
f the
Yea
rCu
mul
ativ
e Sh
areh
oldi
ng
duri
ng th
e Ye
ar
Slno
Folio
/Dpi
d-Cl
ient
idCa
tego
ryTy
peN
ame
of th
e Sh
are
Hol
der
No
of
Shar
es%
of t
otal
sh
ares
of
the
com
pany
Dat
eIn
crea
se/
Dec
reas
e in
sha
re
hold
ing
Reas
onN
o of
Sh
ares
% o
f tot
al
shar
es o
f the
co
mpa
ny
Sale
01/02/2019
-7165318
Tran
sfer
1069
5969
12.
04Pu
rcha
se08/02/2019
9883
Tran
sfer
1069
6957
42.
04Sa
le08/02/2019
-631656
Tran
sfer
106337918
2.03
Purc
hase
15/02/2019
6305
Tran
sfer
1063
4422
32.
03Sa
le15/02/2019
-2697651
Tran
sfer
1036
4657
21.98
Purc
hase
22/02/2019
5050
3756
Tran
sfer
154150328
2.95
Sale
22/02/2019
-6114857
Tran
sfer
148035471
2.83
Purc
hase
01/03/2019
2875415
Tran
sfer
150910886
2.88
Sale
01/03/2019
-39646533
Tran
sfer
1112
6435
32.
13Pu
rcha
se08/03/2019
1240
Tran
sfer
1112
6559
32.
13Sa
le08/03/2019
-11782563
Tran
sfer
99483030
1.90
Purc
hase
15/03/2019
4710
Tran
sfer
99487740
1.90
Sale
15/03/2019
-5219811
Tran
sfer
9426
7929
1.80
Purc
hase
22/03/2019
93805
Tran
sfer
9436
1734
1.80
Sale
22/03/2019
-7329626
Tran
sfer
87032108
1.66
Purc
hase
29/03/2019
1161
6Tr
ansf
er87043724
1.66
Sale
29/03/2019
-5469371
Tran
sfer
81574353
1.56
Clos
ing
Bala
nce
30/03/2019
81574353
1.56
3AAATH1809AMUT
Open
ing
Bala
nce
HDFCTRUSTEE
COMPANYLIMITED-
HDFCEQUITYFUND
155129892
2.97
31/03/2018
155129892
2.97
Purc
hase
06/04/2018
1242
793
Tran
sfer
156372685
2.99
Purc
hase
13/04/2018
1502844
Tran
sfer
157875529
3.02
Sale
13/04/2018
-1349
Tran
sfer
157874180
3.02
Purc
hase
20/04/2018
695
Tran
sfer
157874875
3.02
Purc
hase
27/04/2018
831865
Tran
sfer
158706740
3.03
Sale
27/04/2018
-836000
Tran
sfer
157870740
3.02
Purc
hase
04/05/2018
1409
Tran
sfer
157872149
3.02
Sale
04/05/2018
-1994
Tran
sfer
157870155
3.02
Purc
hase
11/05/2018
1251
901
Tran
sfer
1591
2205
63.
04Sa
le11/05/2018
-1267660
Tran
sfer
157854396
3.02
Purc
hase
18/05/2018
3985
Tran
sfer
157858381
3.02
Sale
18/05/2018
-7072
Tran
sfer
157851309
3.02
Purc
hase
25/05/2018
5909
2Tr
ansf
er15
7910
401
3.02
Sale
25/05/2018
-61371
Tran
sfer
157849030
3.02
Purc
hase
01/06/2018
7595
1Tr
ansf
er157924981
3.02
98
Shar
ehol
ding
at t
he
begg
inni
ng o
f the
Yea
rCu
mul
ativ
e Sh
areh
oldi
ng
duri
ng th
e Ye
ar
Slno
Folio
/Dpi
d-Cl
ient
idCa
tego
ryTy
peN
ame
of th
e Sh
are
Hol
der
No
of
Shar
es%
of t
otal
sh
ares
of
the
com
pany
Dat
eIn
crea
se/
Dec
reas
e in
sha
re
hold
ing
Reas
onN
o of
Sh
ares
% o
f tot
al
shar
es o
f the
co
mpa
ny
Purc
hase
08/06/2018
1735
2559
Tran
sfer
1752
7754
03.
35Sa
le08/06/2018
-15918000
Tran
sfer
1593
5954
03.
05Pu
rcha
se15/06/2018
7826
Tran
sfer
1593
6736
63.
05Pu
rcha
se22/06/2018
1557
Tran
sfer
159368923
3.05
Sale
22/06/2018
-2160
Tran
sfer
1593
6676
33.
05Pu
rcha
se29/06/2018
1766
Tran
sfer
159368529
3.05
Sale
29/06/2018
-4786
Tran
sfer
1593
6374
33.
05Pu
rcha
se06/07/2018
3936
Tran
sfer
1593
6767
93.
05Sa
le06/07/2018
-251
Tran
sfer
159367428
3.05
Purc
hase
13/07/2018
5023
12Tr
ansf
er159869740
3.06
Purc
hase
20/07/2018
2955
Tran
sfer
159872695
3.06
Purc
hase
27/07/2018
441
Tran
sfer
159873136
3.06
Sale
27/07/2018
-9547
Tran
sfer
159863589
3.06
Purc
hase
03/08/2018
2161
7Tr
ansf
er159885206
3.06
Purc
hase
10/08/2018
2187
Tran
sfer
159887393
3.06
Sale
10/08/2018
-28
Tran
sfer
159887365
3.06
Purc
hase
17/08/2018
4039
Tran
sfer
159891404
3.06
Purc
hase
24/08/2018
3077
Tran
sfer
159894481
3.06
Purc
hase
31/08/2018
1143
Tran
sfer
159895624
3.06
Sale
31/08/2018
-23879
Tran
sfer
159871745
3.06
Purc
hase
07/09/2018
8213
Tran
sfer
159879958
3.06
Sale
07/09/2018
-202200
Tran
sfer
159677758
3.05
Purc
hase
14/09/2018
2693
25Tr
ansf
er159947083
3.06
Sale
14/09/2018
-4452
Tran
sfer
1599
4263
13.
06Pu
rcha
se21/09/2018
4830
Tran
sfer
1599
4746
13.
06Pu
rcha
se28/09/2018
20782
Tran
sfer
159968243
3.06
Purc
hase
05/10/2018
19784
Tran
sfer
159988027
3.06
Purc
hase
12/10/2018
2242
29Tr
ansf
er16
0212
256
3.06
Purc
hase
19/10/2018
17870
Tran
sfer
1602
3012
63.
06Pu
rcha
se26/10/2018
8220
Tran
sfer
160238346
3.06
Purc
hase
02/11/2018
129989
Tran
sfer
160368335
3.07
Sale
02/11/2018
-276
Tran
sfer
160368059
3.07
Purc
hase
09/11/2018
2524
Tran
sfer
160370583
3.07
Purc
hase
16/11/2018
98751
Tran
sfer
1604
6933
43.
07Pu
rcha
se23/11/2018
2884
Tran
sfer
160472218
3.07
Purc
hase
30/11/2018
1267
0Tr
ansf
er160484888
3.07
99
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ehol
ding
at t
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Sale
30/11/2018
-12000
Tran
sfer
160472888
3.07
Purc
hase
07/12/2018
3187
Tran
sfer
1604
7607
53.
07Sa
le07/12/2018
-296000
Tran
sfer
160180075
3.06
Purc
hase
14/12/2018
9388
Tran
sfer
160189463
3.06
Purc
hase
21/12/2018
4777
Tran
sfer
1601
9424
03.
06Pu
rcha
se28/12/2018
4674
Tran
sfer
160198914
3.06
Sale
28/12/2018
-3752
Tran
sfer
1601
9516
23.
06Pu
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se31/12/2018
4984
Tran
sfer
1602
0014
63.
06Pu
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2240
Tran
sfer
160202386
3.06
Sale
04/01/2019
-239
Tran
sfer
1602
0214
73.
06Pu
rcha
se11/01/2019
8941
Tran
sfer
160211088
3.06
Purc
hase
18/01/2019
6810
Tran
sfer
160217898
3.06
Purc
hase
25/01/2019
4404
Tran
sfer
1602
2230
23.
06Pu
rcha
se01/02/2019
1119
7Tr
ansf
er16
0233
499
3.06
Purc
hase
08/02/2019
6222
Tran
sfer
1602
3972
13.
06Sa
le08/02/2019
-166
Tran
sfer
1602
3955
53.
06Pu
rcha
se15/02/2019
7135
Tran
sfer
1602
4669
03.
06Sa
le15/02/2019
-2835
Tran
sfer
160243855
3.06
Purc
hase
22/02/2019
8683
Tran
sfer
160252538
3.06
Purc
hase
01/03/2019
10478
Tran
sfer
1602
6301
63.
06Pu
rcha
se08/03/2019
2766
Tran
sfer
160265782
3.06
Sale
08/03/2019
-301965
Tran
sfer
159963817
3.06
Purc
hase
15/03/2019
6523
Tran
sfer
1599
7034
03.
06Sa
le15/03/2019
-1416
Tran
sfer
159968924
3.06
Purc
hase
22/03/2019
1053
0Tr
ansf
er15
9979
454
3.06
Sale
22/03/2019
-6811
Tran
sfer
1599
7264
33.
06Pu
rcha
se29/03/2019
3125
7Tr
ansf
er16
0003
900
3.06
Sale
29/03/2019
-1905427
Tran
sfer
158098473
3.02
Clos
ing
Bala
nce
30/03/2019
158098473
3.02
4AA
CCC5
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FP
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enin
g Ba
lanc
eCOMGESTGROWTH
PLC-COM
GEST
GROW
TH
EMER
GING
MAR
KE
68555662
1.31
31/03/2018
68555662
1.31
Purc
hase
22/06/2018
1471
172
Tran
sfer
70026834
1.34
Sale
01/03/2019
-1504175
Tran
sfer
68522659
1.31
Sale
29/03/2019
-1994816
Tran
sfer
66527843
1.27
Clos
ing
Bala
nce
30/03/2019
66527843
1.27
100
Shar
ehol
ding
at t
he
begg
inni
ng o
f the
Yea
rCu
mul
ativ
e Sh
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5AABTC2758E
FPI
Open
ing
Bala
nce
CAPITALWORLD
GROW
THAND
INCOMEFUND
64038000
1.22
31/03/2018
64038000
1.22
Sale
29/06/2018
-4165186
Tran
sfer
59872814
1.14
Sale
06/07/2018
-3304496
Tran
sfer
56568318
1.08
Sale
13/07/2018
-7155987
Tran
sfer
4941
2331
0.94
Sale
20/07/2018
-2498479
Tran
sfer
46913852
0.90
Sale
27/07/2018
-11394852
Tran
sfer
3551
9000
0.68
Sale
03/08/2018
-3500000
Tran
sfer
3201
9000
0.61
Clos
ing
Bala
nce
30/03/2019
3201
9000
0.61
6AA
ACI7
351P
LTD
Open
ing
Bala
nce
ICICIPRUDENTIAL
LIFEINSURANCE
COM
PANY
LTD
4717
7791
0.90
31/03/2018
4717
7791
0.90
Sale
06/04/2018
-3272552
Tran
sfer
4390
5239
0.84
Sale
13/04/2018
-1581298
Tran
sfer
4232
3941
0.81
Sale
20/04/2018
-1148414
Tran
sfer
4117
5527
0.79
Sale
27/04/2018
-770150
Tran
sfer
4040
5377
0.77
Sale
04/05/2018
-903091
Tran
sfer
39502286
0.76
Sale
11/05/2018
-3398630
Tran
sfer
3610
3656
0.69
Sale
18/05/2018
-3129002
Tran
sfer
3297
4654
0.63
Sale
25/05/2018
-1745400
Tran
sfer
3122
9254
0.60
Sale
01/06/2018
-8758482
Tran
sfer
2247
0772
0.43
Purc
hase
08/06/2018
6000
00Tr
ansf
er23
0707
720.
44Sa
le08/06/2018
-142291
Tran
sfer
22928481
0.44
Sale
15/06/2018
-194215
Tran
sfer
2273
4266
0.43
Sale
22/06/2018
-457558
Tran
sfer
22276708
0.43
Sale
29/06/2018
-3324671
Tran
sfer
18952037
0.36
Purc
hase
06/07/2018
2750
00Tr
ansf
er19
2270
370.
37Sa
le06/07/2018
-1000930
Tran
sfer
18226107
0.35
Purc
hase
13/07/2018
192668
Tran
sfer
18418775
0.35
Purc
hase
20/07/2018
154853
Tran
sfer
18573628
0.36
Sale
27/07/2018
-33032
Tran
sfer
18540596
0.35
Purc
hase
03/08/2018
499388
Tran
sfer
19039984
0.36
Sale
03/08/2018
-309363
Tran
sfer
18730621
0.36
Sale
10/08/2018
-44757
Tran
sfer
18685864
0.36
Sale
17/08/2018
-8484
Tran
sfer
18677380
0.36
Sale
24/08/2018
-413500
Tran
sfer
18263880
0.35
101
Shar
ehol
ding
at t
he
begg
inni
ng o
f the
Yea
rCu
mul
ativ
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duri
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Shar
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of t
otal
sh
ares
of
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Dat
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hold
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Reas
onN
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Sh
ares
% o
f tot
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shar
es o
f the
co
mpa
ny
Sale
31/08/2018
-704427
Tran
sfer
1755
9453
0.34
Sale
07/09/2018
-631310
Tran
sfer
16928143
0.32
Sale
14/09/2018
-1394262
Tran
sfer
15533881
0.30
Sale
21/09/2018
-1704237
Tran
sfer
13829644
0.26
Purc
hase
28/09/2018
232801
Tran
sfer
1406
2445
0.27
Sale
28/09/2018
-103297
Tran
sfer
13959148
0.27
Purc
hase
05/10/2018
3650
00Tr
ansf
er14324148
0.27
Sale
05/10/2018
-2670287
Tran
sfer
11653861
0.22
Sale
12/10/2018
-777713
Tran
sfer
10876148
0.21
Purc
hase
19/10/2018
2930
44Tr
ansf
er11
1691
920.
21Sa
le26/10/2018
-12613
Tran
sfer
1115
6579
0.21
Purc
hase
02/11/2018
265685
Tran
sfer
1142
2264
0.22
Sale
02/11/2018
-109812
Tran
sfer
1131
2452
0.22
Sale
09/11/2018
-742211
Tran
sfer
1057
0241
0.20
Sale
16/11/2018
-1759511
Tran
sfer
8810730
0.17
Purc
hase
30/11/2018
5750
9Tr
ansf
er8868239
0.17
Purc
hase
07/12/2018
1027
6Tr
ansf
er8878515
0.17
Sale
14/12/2018
-207482
Tran
sfer
8671033
0.17
Sale
21/12/2018
-133037
Tran
sfer
8537996
0.16
Sale
28/12/2018
-78202
Tran
sfer
8459794
0.16
Purc
hase
31/12/2018
5030
Tran
sfer
8464824
0.16
Sale
04/01/2019
-277519
Tran
sfer
8187305
0.16
Sale
11/01/2019
-294063
Tran
sfer
7893242
0.15
Sale
18/01/2019
-267
Tran
sfer
7892975
0.15
Purc
hase
25/01/2019
4055
65Tr
ansf
er8298540
0.16
Sale
01/02/2019
-636694
Tran
sfer
7661846
0.15
Purc
hase
08/02/2019
3653
5Tr
ansf
er7698381
0.15
Sale
08/02/2019
-100000
Tran
sfer
7598381
0.15
Purc
hase
15/02/2019
6346
7Tr
ansf
er7661848
0.15
Sale
15/02/2019
-59000
Tran
sfer
7602848
0.15
Sale
22/02/2019
-1069613
Tran
sfer
6533
235
0.12
Purc
hase
01/03/2019
1390
09Tr
ansf
er66
7224
40.
13Sa
le01/03/2019
-14369
Tran
sfer
6657875
0.13
Purc
hase
08/03/2019
3470
24Tr
ansf
er7004899
0.13
Sale
15/03/2019
-251129
Tran
sfer
6753
770
0.13
Purc
hase
22/03/2019
3203
Tran
sfer
6756
973
0.13
102
Shar
ehol
ding
at t
he
begg
inni
ng o
f the
Yea
rCu
mul
ativ
e Sh
areh
oldi
ng
duri
ng th
e Ye
ar
Slno
Folio
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of th
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are
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der
No
of
Shar
es%
of t
otal
sh
ares
of
the
com
pany
Dat
eIn
crea
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Dec
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sha
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hold
ing
Reas
onN
o of
Sh
ares
% o
f tot
al
shar
es o
f the
co
mpa
ny
Purc
hase
29/03/2019
95789
Tran
sfer
6852762
0.13
Clos
ing
Bala
nce
30/03/2019
6852762
0.13
7AA
ATH4
654D
FPI
Open
ing
Bala
nce
VIRTUSVONTOBEL
EMER
GING
M
ARKE
TS
OPPORTUNITIES
FUN
4272
5595
0.82
31/03/2018
4272
5595
0.82
Purc
hase
11/05/2018
3837096
Tran
sfer
4656
2691
0.89
Purc
hase
18/05/2018
6650
437
Tran
sfer
53213128
1.02
Sale
22/06/2018
-1025928
Tran
sfer
52187200
1.00
Sale
06/07/2018
-399048
Tran
sfer
51788152
0.99
Sale
20/07/2018
-253240
Tran
sfer
5153
4912
0.99
Sale
27/07/2018
-353431
Tran
sfer
51181481
0.98
Purc
hase
03/08/2018
1831259
Tran
sfer
5301
2740
1.01
Purc
hase
10/08/2018
1879276
Tran
sfer
54892016
1.05
Purc
hase
17/08/2018
2929
91Tr
ansf
er55185007
1.05
Purc
hase
24/08/2018
87485
Tran
sfer
5527
2492
1.06
Sale
21/09/2018
-619518
Tran
sfer
5465
2974
1.04
Sale
19/10/2018
-550261
Tran
sfer
5410
2713
1.03
Sale
02/11/2018
-755512
Tran
sfer
5334
7201
1.02
Sale
16/11/2018
-451056
Tran
sfer
52896145
1.01
Sale
23/11/2018
-996334
Tran
sfer
51899811
0.99
Sale
14/12/2018
-691289
Tran
sfer
51208522
0.98
Sale
21/12/2018
-1768606
Tran
sfer
4943
9916
0.95
Sale
31/12/2018
-546897
Tran
sfer
48893019
0.93
Sale
04/01/2019
-481560
Tran
sfer
48411459
0.93
Clos
ing
Bala
nce
30/03/2019
48411459
0.93
8AAECM1699Q
FPI
Open
ing
Bala
nce
MAG
ELLA
N 42
2232
110.81
31/03/2018
4222
3211
0.81
Sale
22/06/2018
-1471172
Tran
sfer
4075
2039
0.78
Sale
13/07/2018
-1072063
Tran
sfer
3967
9976
0.76
Clos
ing
Bala
nce
30/03/2019
3967
9976
0.76
9AABTS6407QMUT
Open
ing
Bala
nce
SBI-ETFSENSEX
2551
0951
0.49
31/03/2018
2551
0951
0.49
Purc
hase
06/04/2018
485785
Tran
sfer
2599
6736
0.50
Purc
hase
13/04/2018
6057
0Tr
ansf
er26
0573
060.
50Pu
rcha
se20/04/2018
1939
03Tr
ansf
er26
2512
090.
50Pu
rcha
se27/04/2018
2397
19Tr
ansf
er26490928
0.51
Purc
hase
04/05/2018
1743
04Tr
ansf
er26
6652
320.
51
103
Shar
ehol
ding
at t
he
begg
inni
ng o
f the
Yea
rCu
mul
ativ
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oldi
ng
duri
ng th
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ar
Slno
Folio
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d-Cl
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of th
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are
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No
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Shar
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of t
otal
sh
ares
of
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Dat
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crea
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sha
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hold
ing
Reas
onN
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Sh
ares
% o
f tot
al
shar
es o
f the
co
mpa
ny
Purc
hase
11/05/2018
287213
Tran
sfer
2695
2445
0.52
Purc
hase
18/05/2018
88173
Tran
sfer
27040618
0.52
Sale
18/05/2018
-1771895
Tran
sfer
25268723
0.48
Purc
hase
25/05/2018
155888
Tran
sfer
2542
4611
0.49
Purc
hase
01/06/2018
48015
Tran
sfer
2547
2626
0.49
Sale
01/06/2018
-3874397
Tran
sfer
21598229
0.41
Purc
hase
08/06/2018
1786550
Tran
sfer
23384779
0.45
Purc
hase
15/06/2018
1753
45Tr
ansf
er23
5601
240.
45Pu
rcha
se22/06/2018
185
Tran
sfer
2356
0309
0.45
Sale
22/06/2018
-430658
Tran
sfer
2312
9651
0.44
Purc
hase
29/06/2018
7570
3Tr
ansf
er23
2053
540.
44Sa
le29/06/2018
-1941749
Tran
sfer
2126
3605
0.41
Purc
hase
06/07/2018
4426
419
Tran
sfer
2569
0024
0.49
Purc
hase
13/07/2018
180782
Tran
sfer
25870806
0.49
Sale
13/07/2018
-2683
Tran
sfer
25868123
0.49
Purc
hase
20/07/2018
150768
Tran
sfer
26018891
0.50
Purc
hase
27/07/2018
1497
16Tr
ansf
er26168607
0.50
Sale
27/07/2018
-141155
Tran
sfer
2602
7452
0.50
Purc
hase
03/08/2018
2616
019
Tran
sfer
28643471
0.55
Sale
03/08/2018
-144627
Tran
sfer
28498844
0.54
Purc
hase
10/08/2018
208009
Tran
sfer
28706853
0.55
Sale
10/08/2018
-3Tr
ansf
er28706850
0.55
Purc
hase
17/08/2018
7300
5Tr
ansf
er28779855
0.55
Purc
hase
24/08/2018
1955
50Tr
ansf
er28975405
0.55
Purc
hase
31/08/2018
1342
97Tr
ansf
er29
1097
020.
56Sa
le31/08/2018
-173711
Tran
sfer
28935991
0.55
Purc
hase
07/09/2018
1007
90Tr
ansf
er29036781
0.56
Sale
07/09/2018
-241
Tran
sfer
2903
6540
0.56
Purc
hase
14/09/2018
71118
Tran
sfer
29107658
0.56
Sale
14/09/2018
-347047
Tran
sfer
28760611
0.55
Purc
hase
21/09/2018
162832
Tran
sfer
28923443
0.55
Purc
hase
28/09/2018
388768
Tran
sfer
2931
2211
0.56
Sale
28/09/2018
-681591
Tran
sfer
28630620
0.55
Purc
hase
05/10/2018
1640
290
Tran
sfer
3027
0910
0.58
Purc
hase
12/10/2018
258375
Tran
sfer
30529285
0.58
Purc
hase
19/10/2018
117893
Tran
sfer
30647178
0.59
104
Shar
ehol
ding
at t
he
begg
inni
ng o
f the
Yea
rCu
mul
ativ
e Sh
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ng
duri
ng th
e Ye
ar
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Folio
/Dpi
d-Cl
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peN
ame
of th
e Sh
are
Hol
der
No
of
Shar
es%
of t
otal
sh
ares
of
the
com
pany
Dat
eIn
crea
se/
Dec
reas
e in
sha
re
hold
ing
Reas
onN
o of
Sh
ares
% o
f tot
al
shar
es o
f the
co
mpa
ny
Purc
hase
26/10/2018
2236
51Tr
ansf
er30870829
0.59
Purc
hase
02/11/2018
1683045
Tran
sfer
32553874
0.62
Sale
02/11/2018
-4Tr
ansf
er32553870
0.62
Purc
hase
09/11/2018
1460
05Tr
ansf
er32699875
0.63
Purc
hase
16/11/2018
2406
27Tr
ansf
er32
9405
020.
63Sa
le16/11/2018
-2013
Tran
sfer
32938489
0.63
Purc
hase
23/11/2018
138998
Tran
sfer
33077487
0.63
Purc
hase
30/11/2018
1091
51Tr
ansf
er33186638
0.63
Purc
hase
07/12/2018
8070
Tran
sfer
33194708
0.63
Sale
07/12/2018
-44678
Tran
sfer
3315
0030
0.63
Purc
hase
14/12/2018
40382
Tran
sfer
3319
0412
0.63
Sale
14/12/2018
-180279
Tran
sfer
3301
0133
0.63
Purc
hase
21/12/2018
1630
49Tr
ansf
er33173182
0.63
Sale
28/12/2018
-734717
Tran
sfer
32438465
0.62
Purc
hase
31/12/2018
5605
6Tr
ansf
er32
4945
210.
62Pu
rcha
se04/01/2019
3527
55Tr
ansf
er32847276
0.63
Purc
hase
11/01/2019
435418
Tran
sfer
33282694
0.64
Purc
hase
18/01/2019
2997
94Tr
ansf
er33582488
0.64
Sale
18/01/2019
-780
Tran
sfer
33581708
0.64
Purc
hase
25/01/2019
3235
05Tr
ansf
er33
9052
130.
65Sa
le25/01/2019
-294
Tran
sfer
3390
4919
0.65
Purc
hase
01/02/2019
3440
75Tr
ansf
er34248994
0.65
Purc
hase
08/02/2019
680636
Tran
sfer
3492
9630
0.67
Purc
hase
15/02/2019
5513
4Tr
ansf
er34984764
0.67
Sale
15/02/2019
-2171075
Tran
sfer
32813689
0.63
Purc
hase
22/02/2019
187114
Tran
sfer
33000803
0.63
Purc
hase
01/03/2019
420178
Tran
sfer
33420981
0.64
Sale
01/03/2019
-65681
Tran
sfer
3335
5300
0.64
Purc
hase
08/03/2019
2735
473
Tran
sfer
3609
0773
0.69
Sale
08/03/2019
-10479
Tran
sfer
36080294
0.69
Purc
hase
15/03/2019
4122
72Tr
ansf
er36
4925
660.
70Pu
rcha
se22/03/2019
380436
Tran
sfer
36873002
0.70
Sale
22/03/2019
-498
Tran
sfer
36872504
0.70
Purc
hase
29/03/2019
2492
46Tr
ansf
er37
1217
500.
71Sa
le29/03/2019
-1Tr
ansf
er37
1217
490.
71Cl
osin
g Ba
lanc
e30/03/2019
3712
1749
0.71
105
Shar
ehol
ding
at t
he
begg
inni
ng o
f the
Yea
rCu
mul
ativ
e Sh
areh
oldi
ng
duri
ng th
e Ye
ar
Slno
Folio
/Dpi
d-Cl
ient
idCa
tego
ryTy
peN
ame
of th
e Sh
are
Hol
der
No
of
Shar
es%
of t
otal
sh
ares
of
the
com
pany
Dat
eIn
crea
se/
Dec
reas
e in
sha
re
hold
ing
Reas
onN
o of
Sh
ares
% o
f tot
al
shar
es o
f the
co
mpa
ny
10AA
AAE0
997R
FPI
Open
ing
Bala
nce
EUROPACIFIC
GROW
THFUND
34891520
0.67
31/03/2018
34891520
0.67
Sale
06/04/2018
-6028282
Tran
sfer
28863238
0.55
Sale
13/04/2018
-2473064
Tran
sfer
2639
0174
0.50
Sale
20/04/2018
-11226043
Tran
sfer
1516
4131
0.29
Sale
27/04/2018
-772274
Tran
sfer
14391857
0.28
Sale
04/05/2018
-3194651
Tran
sfer
1119
7206
0.21
Sale
11/05/2018
-11197206
Tran
sfer
00.
00Cl
osin
g Ba
lanc
e30/03/2019
00.
00
Chan
ge in
Sha
reho
ldin
g Cu
mul
ativ
e Sh
areh
oldi
ng d
urin
g th
e ye
arFo
r Eac
h of
the
Dir
ecto
rs &
KM
PN
o.of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyN
o of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyAtthebeginningoftheyear01/04/2018
9,0
16
0 9
,016
0
Datewiseincrease/decreaseinShareholdingduringtheyearspecifyingthereasons
forincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
00
00
Attheendoftheyear31/03/2019
9,0
16
0 9
,016
0
(v)
Sha
reho
ldin
g of
Dir
ecto
rs &
KM
P1.
Shr
i Rav
i P. S
ingh
, Dir
ecto
r (Pe
rson
nel)
& C
MD
Chan
ge in
Shar
ehol
ding
Cu
mul
ativ
e Sh
areh
oldi
ng d
urin
g th
e ye
arFo
r Eac
h of
the
Dir
ecto
rs &
KM
PN
o.of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyN
o of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyAtthebeginningoftheyear01/04/2018
1,0
29
0 1
,029
0
Datewiseincrease/decreaseinShareholdingduringtheyearspecifyingthereasons
forincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
00
00
Attheendoftheyear31/03/2019
1,0
29
0 1
,029
0
2. S
hri K
. Sre
ekan
t, D
irec
tor (
Fina
nce)
106
Chan
ge in
Sha
reho
ldin
g Cu
mul
ativ
e Sh
areh
oldi
ng d
urin
g th
e ye
arFo
r Eac
h of
the
Dir
ecto
rs &
KM
PN
o.of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyN
o of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyAtthebeginningoftheyear01/04/2018
8,807
08,807
0Datewiseincrease/decreaseinShareholdingduringtheyearspecifyingthereasons
forincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
00
Attheendoftheyear31/03/2019
8,807
08,807
0
Chan
ge in
Sha
reho
ldin
g Cu
mul
ativ
e Sh
areh
oldi
ng d
urin
g th
e ye
arFo
r Eac
h of
the
Dir
ecto
rs &
KM
PN
o.of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyN
o of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyAtthebeginningoftheyear01/04/2018
--
1
0Datewiseincrease/decreaseinShareholdingduringtheyearspecifyingthereasons
forincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
00
Attheendoftheyear31/03/2019
--
1
0
Chan
ge in
Sha
reho
ldin
g Cu
mul
ativ
e Sh
areh
oldi
ng d
urin
g th
e ye
arFo
r Eac
h of
the
Dir
ecto
rs &
KM
PN
o.of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyN
o of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyAtthebeginningoftheyear01/04/2018
00
00
Datewiseincrease/decreaseinShareholdingduringtheyearspecifyingthereasons
forincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
00
00
Attheendoftheyear31/03/2019
00
00
3. M
s. S
eem
a G
upta
, Dir
ecto
r (O
pera
tions
)
4. S
hri R
. K. C
hauh
an, D
irec
tor (
Proj
ects
) (w
.e.f.
23.
08.2
018)
5. S
hri V
ivek
Kum
ar D
ewan
gan
Gov
t. D
irec
tor (
w.e
.f. 2
6.04
.201
8)
Chan
ge in
Shar
ehol
ding
Cu
mul
ativ
e Sh
areh
oldi
ng d
urin
g th
e ye
arFo
r Eac
h of
the
Dir
ecto
rs &
KM
PN
o.of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyN
o of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyAtthebeginningoftheyear01/04/2018
00
00
Datewiseincrease/decreaseinShareholdingduringtheyearspecifyingthereasons
forincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
00
00
Attheendoftheyear31/03/2019
00
00
6. S
hri G
hans
hyam
Pra
sad
Gov
t. D
irec
tor (
w.e
.f. 0
1.03
.201
9)
107
Chan
ge in
Sha
reho
ldin
g Cu
mul
ativ
e Sh
areh
oldi
ng d
urin
g th
e ye
arFo
r Eac
h of
the
Dir
ecto
rs &
KM
PN
o.of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyN
o of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyAtthebeginningoftheyear01/04/2018
00
00
Datewiseincrease/decreaseinShareholdingduringtheyearspecifyingthereasons
forincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
00
00
Attheendoftheyear31/03/2019
00
00
Chan
ge in
Shar
ehol
ding
Cu
mul
ativ
e Sh
areh
oldi
ng d
urin
g th
e ye
arFo
r Eac
h of
the
Dir
ecto
rs &
KM
PN
o.of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyN
o of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyAtthebeginningoftheyear01/04/2018
00
00
Datewiseincrease/decreaseinShareholdingduringtheyearspecifyingthereasons
forincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
00
00
Attheendoftheyear31/03/2019
00
00
Chan
ge in
Sha
reho
ldin
g Cu
mul
ativ
e Sh
areh
oldi
ng d
urin
g th
e ye
arFo
r Eac
h of
the
Dir
ecto
rs &
KM
PN
o.of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyN
o of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyAtthebeginningoftheyear01/04/2018
00
00
Datewiseincrease/decreaseinShareholdingduringtheyearspecifyingthereasons
forincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
00
00
Attheendoftheyear31/03/2019
00
00
7. S
hri J
agdi
sh I
. Pat
el,I
ndep
ende
nt D
irec
tor
8. S
hri T
se T
en D
orji,
Ind
epen
dent
Dir
ecto
r
9. S
hri M
anoj
Kum
ar M
ittal
, Ind
epen
dent
Dir
ecto
r
Chan
ge in
Shar
ehol
ding
Cu
mul
ativ
e Sh
areh
oldi
ng d
urin
g th
e ye
arFo
r Eac
h of
the
Dir
ecto
rs &
KM
PN
o.of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyN
o of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyAtthebeginningoftheyear01/04/2018
00
00
Datewiseincrease/decreaseinShareholdingduringtheyearspecifyingthereasons
forincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
00
00
Attheendoftheyear31/03/2019
00
00
10. S
hri S
unil
Kum
ar S
harm
a, I
ndep
ende
nt D
irec
tor (
w.e
.f. 2
3.07
.201
8)
108
Chan
ge in
Sha
reho
ldin
g Cu
mul
ativ
e Sh
areh
oldi
ng d
urin
g th
e ye
arFo
r Eac
h of
the
Dir
ecto
rs &
KM
PN
o.of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyN
o of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyAtthebeginningoftheyear01/04/2018
00
00
Datewiseincrease/decreaseinShareholdingduringtheyearspecifyingthereasons
forincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
00
00
Attheendoftheyear31/03/2019
00
00
Chan
ge in
Sha
reho
ldin
g Cu
mul
ativ
e Sh
areh
oldi
ng d
urin
g th
e ye
arFo
r Eac
h of
the
Dir
ecto
rs &
KM
PN
o.of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyN
o of
sha
res
% o
f tot
al s
hare
s of
th
e co
mpa
nyAtthebeginningoftheyear01/04/2018
15,
337
0 1
5,33
7 0
Datewiseincrease/decreaseinShareholdingduringtheyearspecifyingthereasons
forincrease/decrease(e.g.allotment/transfer/bonus/sweatequityetc)
00
00
Attheendoftheyear31/03/2019
15,
337
0 1
5,33
7 0
11. S
mt.
A. R
. Mah
alak
shm
i, In
depe
nden
t Dir
ecto
r (w
.e.f.
26.
07.2
018)
12. S
mt.
Div
ya T
ando
n, C
ompa
ny S
ecre
tary
Inde
bted
ness
of t
he C
ompa
ny in
clud
ing
inte
rest
out
stan
ding
/acc
rued
but
not
due
for p
aym
ent
"Sec
ured
Loa
ns
exc
ludi
ng d
epos
its"
"Uns
ecur
ed
Loan
s"D
epos
its"T
otal
In
debt
edne
ss"
Inde
btne
ss a
t the
beg
inni
ng o
f the
fina
ncia
l yea
rN/A
i) Pr
incip
al A
mou
nt114,481.31
16,
731.
65
131
,212
.96
ii) In
tere
st d
ue b
ut n
ot p
aid
iii) In
tere
st a
ccru
ed b
ut n
ot d
ue3333.86
117.
43 3
,451
.29
Tota
l (i+
ii+iii
)117,815.17
16,849.08
134
,664
.25
Chan
ge in
Ind
ebte
dnes
s du
ring
the
finan
cial
yea
rAd
ditio
ns7,089.35
29,820.23
36,909.58
Redu
ctio
n 7
,652
.94
15,
962.
66
23,
615.
60
Net
Cha
nge
Inde
bted
ness
at t
he e
nd o
f the
fina
ncia
l yea
ri)
Prin
cipal
Am
ount
115
,519
.14
30,
567.
22
146,086.36
ii) In
tere
st d
ue b
ut n
ot p
aid
-iii)
Inte
rest
acc
rued
but
not
due
3234
.45
156.
97*
3,3
91.4
2
Tota
l (i+
ii+iii
)118,753.59
30,
724.
19
149,477.78
Inclu
des
`36.
22 c
rore
inte
res
accu
red
but n
ot d
ue o
n Go
I ful
ly s
ervi
ced
bond
s.
V. I
ND
EBTE
DN
ESS
(As
on 3
1.03
.201
9)
(` in
Cro
re)
109
Sl.N
oPa
rtic
ular
s of
Rem
uner
atio
n To
tal
Amou
ntSh
ri R
avi P
. Si
ngh,
Dir
ecto
r (P
erso
nnel
) &
CM
D
Shri
I. S
. Jha
, CM
D (
From
01
.04.
2018
to
21.0
1.20
19)
Shri
K.
Sree
kant
, D
irec
tor
(Fin
ance
) &
CF
O
Ms.
See
ma
Gup
ta,
Dir
ecto
r (O
pera
tions
)
Shri
R. K
. Ch
auha
n,
Dir
ecto
r (P
roje
cts)
w
.e.f.
23
.08.
2018
Shri
Pra
bhak
ar
Sing
h, D
irec
tor
(Pro
ject
s) (
Up
to 3
0.06
.201
8)
1Gr
oss
sala
ry(a
) Sal
ary
as p
er p
rovi
sions
con
tain
ed in
section17(1)oftheIncomeTax.1961.
9195
544.
3413584973.21
8630668.3
8298696.18
4729
126.
2375
9275
7.47
5203
1765
.73
(b)Valueofperquisitesu/s17(2)ofthe
IncometaxAct,1961
1367059.18
2905
104.
341203686.27
1710
27.6
989957.24
1340816
7077
650.
72
(c)Profitsinlieuofsalaryundersection
17(3)oftheIncomeTaxAct,1961
00
00
2St
ock
optio
n0
00
03
SweatEquity
00
00
4Co
mm
issio
n0
00
0as%ofprofit
00
00
othe
rs (s
pecif
y)0
00
05
Othe
rs, p
leas
e sp
ecify
00
00
Tota
l (A)
1056
2603
.52
1649
0077
.55
9834
354.
5784
6972
3.87
4819
083.
4789
3357
3.47
5910
9416
.45
Ceilin
g as
per
the
Act
Sl.N
oPa
rtic
ular
s of
Rem
uner
atio
nN
ame
of th
e D
irec
tors
Tota
l Am
ount
1In
depe
nden
t Dir
ecto
rsSh
ri
J.I.
Pate
l Sh
ri T
se T
en
Dor
ji Sh
ri M
anoj
Ku
mar
Mitt
al
Shri
Sun
il Ku
mar
Sha
rma
(w.e
.f. 2
3.07
.201
8)Sm
t. A
. R. M
ahal
aksh
mi,
(w.e
.f. 2
6.07
.201
8)
(a)Feeforattendingboard&
com
mitt
ee m
eetin
gs94
0000
1100
000
780000
480000
4200
0037
2000
0
(b) C
omm
issio
n0
00
0(c
) Ot
hers
, ple
ase
spec
ify0
00
0To
tal (
1)94
0000
1100
000
780000
480000
4200
0037
2000
02
OtherNonExecutiveDirectors
"(a)
Fee
for a
ttend
ing
bo
ard
com
mitt
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111
Annexure - VII to the Directors’ Report
REPORT ON CORPORATE GOVERNANCEThe Directors present the Company’s Report on Corporate Governance.1. THE COMPANY’S GOVERNANCE PHILOSOPHY: Corporate Governance is about promoting corporate fairness, transparency and accountability in the best interest of various stakeholders
in a Company. It is a system by which business corporations are directed and controlled. Power Grid Corporation of India Limited (POWERGRID or the Company) believes that good governance should entail trusteeship, empowerment and accountability of themanagementwhileremainingproactivetotheGovernmentpolicies.POWERGRID’sGovernanceprocessisfocusedtowardsitsVisionof“WorldClass,Integrated,GlobalTransmissionCompanywithDominantLeadershipinEmergingPowerMarketsEnsuringReliability,SafetyandEconomy”anditsmissioni.e.“WewillbecomeaGlobalTransmissionCompanywithDominantLeadershipinEmergingPowerMarketswithWorldClassCapabilitiesby:
1. Setting superior standards in capital project management and operations for the industry and ourselves. 2. LeveragingcapabilitiestoconsistentlygeneratemaximumvalueforallstakeholdersinIndiaandinemergingandgrowingeconomies. 3. Inspiring,nurturingandempoweringthenextgenerationofprofessionals. 4. Achievingcontinuousimprovementsthroughinnovationandstate-of-the-arttechnology. 5. Committing to highest standards in health, safety, security and environment.” TheCorporateGovernanceofPOWERGRIDisgearedbythefollowing: (i) Tomeettheshortterm,mediumterm&longtermobjectivesandspecifictargetseveryyearsetbytheGovernmentofIndiaandby
theBoard,byempoweringpeopleatthemostappropriatelevelskeepingthejobprofile/functionsinview. (ii) To respond to the challenges and the emerging opportunities and to play a pivotal role in the economic development of the country. Thecorporategovernancestructurespecifiesthedistributionofrights,responsibilitiesandpowersamongdifferentparticipants inthe
corporation.Allstrategicdecisionsregardinginvestment,diversification,majordecisionsregardingprocurement,commercialandfinanceare implemented after approval by the Board.
POWERGRIDisa“NAVRATNAPSE”sinceMay2008.TheNAVRATNAstatushasprovidedtheCompanymoreflexibilityandautonomyintermsofmakinginvestmentsandoperationaldecisions.TheBoardofDirectorsofPOWERGRIDhasbeendelegatedpowersbytheCentralGovernmenttoapprovecapitalschemes,incurcapitalexpenditureonpurchaseofnewitemsofassetsorforreplacementwithoutanymonetaryceiling.TheceilingonequityinvestmenttoestablishjointventuresandwhollyownedsubsidiariesinIndiaorabroadis15%ofthenetworthofPOWERGRID.However,inasingleprojecttheceilingonequityinvestmentislimitedto`1000 Crore. The overall ceiling onsuchinvestmentinallprojectsputtogetheris30%ofthenetworthofPOWERGRID.
TheBoardofDirectorscomprisesChairmanandManagingDirector,FunctionalDirectors,Govt.NomineeDirectorsandNon-OfficialPartTime Directors (Independent Directors). The rights and obligations of the employees are delineated in the policy manuals published and theamendmentsarenotified,fromtimetotime.Thepowersoftheinternalparticipantsi.e.topexecutivesandbelowarelaiddowninthewell-establishedandpracticed“DelegationofPowers”.POWERGRIDhasimplemented“WorksandProcurementPolicyandProcedureforPre-awardandPost-awardStages”withaviewtomakingthepoliciesandproceduresmoresystematic,transparentandeasytoadministerwithmajorthrustonexpeditiousanddecentralizeddecisionmakingcoupledwithaccountabilityandresponsibility.TheBoardhasalsoconstitutedseveralCommittees,viz.AuditCommittee;Stakeholders’RelationshipCommittee;NominationandRemunerationCommittee;RiskManagementCommittee;CSRCommittee;CommitteeonInvestmentonProjects;CommitteeonAwardofContracts;CommitteeforBonds;CommitteeforAwardofContractsrelatingtoRuralElectrification(RE)andotherDepositWorks;CommitteeonTransfer/Split/Rematerialisationetc.ofshares;CommitteeofDirectorsforNewBusinesses;etc.tohavebetterandmorefocusedattention.AdvisoryBoardsofeminentpersonsareinplaceforEnvironmentandSocialPolicyandProcedures,R&DandforTelecomtoadvisePOWERGRIDoncriticalissues/consensusbuildingintheseareas.
BesidesadheringtotheprovisionsofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,POWERGRIDisrequiredto follow the Guidelines on Corporate Governance issued by Department of Public Enterprises, Government of India.
ThecomplianceoftheCompanywiththeconditionsoftheCorporateGovernanceandthedisclosurerequirementsfortheYear2018-19are given below:
2. Board of Directors:2.1 Size of the Board POWERGRIDisaGovernmentCompanywithinthemeaningofSection2(45)oftheCompaniesAct,2013(theAct)andthePresidentof
Indiapresentlyholds55.37%ofthetotalpaid-upsharecapital.AsperArticlesofAssociation,thepowertoappointDirectorsrestswiththe President of India. In terms of Articles of Association of the Company, the strength of Board of Directors of the Company shall not be lessthanfourDirectorsandnotmorethaneighteenDirectors.TheseDirectorsmaybeeitherwhole-timeDirectorsorpart-timeDirectors.
2.2 Composition of the Board SEBI(ListingObligations&DisclosureRequirements)Regulations,2015,asamendedfromtimetotime,(hereinafterreferredasSEBI
LODR)stipulatethattheBoardofDirectorsofthecompanyshallhaveanoptimumcombinationofexecutiveandnon-executivedirectorswithatleastone-womandirectorandnotlessthanfiftypercentoftheBoardofDirectorscomprisingofnon-executivedirectors.
Sub-section(4)ofsection149ofCompaniesAct,2013stipulatesthateverylistedcompanyshouldhaveatleastone-thirdofthetotalnumber of directors as independent directors.
As on 31stMarch,2019,theBoardcomprisedofelevendirectorsoutofwhichfourwereWholeTimeDirectorsincludingtheChairman&
112
ManagingDirector,twoGovernmentNomineeDirectorsandfiveIndependentDirectors.TheBoardcompositionalsocomprisedofWomanDirectors.
AlltheIndependentDirectorsmeetwiththerequirementsspecifiedunderSection149(6)oftheActforholdingthepositionof‘IndependentDirector’ and None of the Directors of the Company is related to each other.
Thenumberof independentdirectors during thefinancial year 2018-19was insufficient as compared to thenumberof independentdirectorsrequiredunderSEBILODRandCompaniesAct,2013.AsthepowertoappointtheDirectorsontheBoardvestswiththePresidentofIndiaactingthroughAdministrativeMinistry,theCompanyhasbeen,fromtimetotime,requestingMinistryofPowertoappointrequisitenumber of independent directors on the Board.
2.3 Age Limit and Tenure of Directors TheagelimitfortheChairman&ManagingDirectorandotherWholeTimeDirectorsis60years. TheChairman&ManagingDirectorandotherwhole-timeDirectorsareappointedforaperiodoffiveyearsfromthedateoftakingover
of charge or till the date of superannuation of the incumbent or till further orders from the Government of India, whichever event occurs earlier.Onappointmentby theGovernmentof India,asPOWERGRID isa listedCompany, theseDirectorsareco-optedasAdditionalDirectors and the appointment is regularized at the following Annual General Meeting.
Government Nominee Directors representing the Ministry of Power, Government of India retire from the Board after completion of tenure ofthreeyearsfromthedateofappointmentunlesstheirtenureisextendedbyGovernmentofIndia.OnappointmentbytheGovernmentof India they are appointed as Government Nominee Director by the Board of Directors in terms of Section 161(3) of Companies Act, 2013.
Independent Directors are generally appointed by the Government of India for tenure of three years. The details of Directors as on 31st March, 2019 were as follows:
Details of Directors Name Date of Joining on the Board
Category (Functional/ Official/ Non-official)
Designation
1. Whole Time Directors Director(Personnel)&CMD(additionalcharge w.e.f. 21.01.19)
Shri Ravi P. Singh 01.04.2012 As Director (Personnel)
Director (Finance) Shri K. Sreekant 01.09.2016
Director (Projects) Shri Rajeev Kumar Chauhan 23.08.2018
Director (Operations) Mrs. Seema Gupta 01.03.2018
2. Govt. Nominees Part – time Directors
Govt. Nominee Director Shri Vivek Kumar Dewangan 26.04.2018
Govt. Nominee Director Shri Ghanshyam Prasad 01.03.2019
3. Non-official Part-time Directors
Non-officialPart-timeDirector(Independent Director)
Shri Jagdish I. Patel 17.11.2015
Non-officialPart-timeDirector(Independent Director)
Shri Tse Ten Dorji 16.02.2017
Non-officialPart-timeDirector(Independent Director)
Shri Manoj Kumar Mittal 12.09.2017
Non-officialPart-timeDirector(Independent Director)
Shri Sunil Kumar Sharma 23.07.2018
Non-officialPart-timeDirector(Independent Director)
Smt. A. R. Mahalakshmi 26.07.2018
2.4 Board Meetings and Attendance: ThemeetingsoftheBoardofDirectorsarenormallyheldattheRegisteredOfficeoftheCompany.Meetingsaregenerallyscheduledwell
inadvanceandtheNotice,detailedBoardagenda,managementreportsandotherexplanatoryBoardnotesarecirculatedtotheDirectors.The members of the Board have complete access to all information of the Company. Senior management is also invited to the Board meetings to provide additional input to the items being discussed by the Board. In case of urgency, resolutions are passed by circulation.
Duringthefinancialyearended31st March, 2019, thirteen Board meetings were held on 26thApril,2018,1stMay2018,29thMay2018,10th July,2018,18thJuly2018,31stJuly2018,20thSeptember2018,5thNovember2018,3rd January 2019, 31st January, 2019, 16th February, 2019, 7th March, 2019 and 27thMarch,2019.Themaximumintervalbetweenanytwomeetingsduringthisperiodwas58days.DetailofnumberofBoardmeetingsattendedbyDirectors,attendanceatlastAGM,numberofotherdirectorship/committeemembership[viz.AuditCommitteeandStakeholders’RelationshipCommitteeasperSEBI LODR]heldby themduring theFinancial year2018-19aretabulated below:
113
Nam
e of
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ld d
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spec
tive
tenu
re o
f D
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No.
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atte
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% o
f At
tend
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ld o
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.03.
2019
in
oth
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No.
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hip
or C
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Chai
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Mem
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Nam
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Cat
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irect
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Who
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Dir
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ri Ra
vi P.
Sin
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1313
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NIL
1NI
LNI
L
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,Chairman&ManagingDirector
(up
to 2
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.201
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99
100%
Yes
N/A
N/A
N/A
N/A
N/A
Shri
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reek
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Dire
ctor
(Fin
ance
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13100%
Yes
1NI
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EDAd
ditio
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irect
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a Di
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tions
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13100%
Yes
9NI
LNI
LNI
LNI
L
Shri
Prab
haka
r Sin
ghDi
rect
or (P
roje
cts)
(Upto30.06.2018)
0303
100%
N/A
N/A
N/A
N/A
N/A
N/A
Shri
Raje
ev K
umar
Cha
uhan
Dire
ctor
(Pro
ject
s)(w.e.f.23.08.2018)
0707
100%
Yes
6NI
LNI
LPT
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dia
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Nom
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Dire
ctor
Non
-exe
cutiv
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(G
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s)M
s. B
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ti Jt.Secy.-Govt.NomineeDirector
(Upto13.02.2019)
1010
100%
Yes
N/A
N/A
N/A
N/A
N/A
Shr
i Vive
k Ku
mar
Dew
anga
n JS&FA-Govt.NomineeDirector
(w.e.f.26.04.2018)
1311
84.62%
No1
NIL
2NT
PC
LIM
ITED
Nom
inee
Dire
ctor
Shri
Ghan
shya
m P
rasa
d ChiefEngineer-Govt.Nominee
Dire
ctor
(M
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ry o
f Pow
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(w.e
.f. 0
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.201
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0202
100%
N/A
1 NI
LNI
LNI
LNI
L
Inde
pend
ent D
irec
tors
Shri
Jagd
ish I.
Pat
el13
13100%
Yes
22
NIL
NIL
NIL
Shri
Tse
Ten
Dorji
1313
100%
Yes
NIL
NIL
1NI
LNI
LSh
ri M
anoj
Kum
ar M
ittal
1313
100%
Yes
NIL
NIL
2NI
LNI
LSh
ri Su
nil K
umar
Sha
rma
(w.e
.f.
23.07.2018)
0808
100%
Yes
3NI
L1
Astra
M
icrow
ave
Prod
ucts
Li
mite
d
Addi
tiona
l Dire
ctor
Smt.
A. R
. Mah
alak
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0808
100%
Yes
NIL
NIL
1NI
LNI
L
All w
hole
tim
e Di
rect
ors
and
Inde
pend
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irect
ors
have
atte
nded
all
Boar
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eetin
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eld
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e.
N/AindicatesthatconcernedpersonwasnotaDirectoronPOWERGRID’sBoardonthereleventdate.
*IncludescommitteepositioninPOW
ERGRID
114
2.5 Information to be placed before the Board of Directors, inter alia, includes: The Board has complete access to all information with the Company. The information regularly supplied to the Board includes: 1. Annual operating plans and budgets and updates, if any. 2. Annual Accounts, Directors’ Report, etc. 3. Quarterlyfinancialresultsofthecompany. 4. Minutes of meetings of Audit Committee and other committees of the Board including minutes of Subsidiary Companies. 5. Major Investments, formation of Subsidiaries and Joint Ventures, Strategic Alliances, etc. 6. Award of large Contracts. 7. All related party transections. 8. DisclosureofInterestbyDirectorsaboutdirectorshipandcommitteepositionsoccupiedbytheminotherCompanies. 9. Declaration of independency by Independent Directors. 10. Monthly Report on Commercial Status of the Company. 11. QuarterlyReportonBusinessActivitiesofvariousSubsidiariesCompanies. 12. QuarterlyReportonComplianceofvariouslaws. 13. QuarterlyReportonCompliancewithCorporateGovernance;ReconciliationofShareCapitalAuditandInvestors’Complaints. 14. Reportonthestatusofvariousongoingprojects/SchemeandBudgetUtilization. 15. ReportontheO&MReview. 16. AnysignificantdevelopmentinHumanResources/IndustrialRelationsfrontlikesigningofwageagreement,etc. 17. Non-complianceofanyRegulatory,statutoryor listingrequirementsandshareholders’servicesuchasnon-paymentofdividend,
delayinsharetransferetc.Short-Terminvestmentofsurplusfunds. 18. Othermateriallyimportantinformation. Post meeting follow-up system: 19. TheGovernanceprocessintheCompanyincludesaneffectivepost-meetingfollow-up,reviewandreportingprocessforactiontaken
on decisions of the Board and the Board Committee(s).3. Committees of the Board of Directors: The Board has constituted the following Committees: i) Audit Committee ii) Nomination and Remuneration Committee iii) Stakeholders’ Relationship Committee iv) CSR Committee v) Risk Management Committee3.1 Audit Committee TheCompanyhasconstitutedAuditCommitteeinlinewiththeprovisionsofSection177oftheCompaniesAct,2013andRegulation18of
SEBI LODR As on 31 March, 2019, the Audit Committee comprised the following Directors:
(i) Shri Jagdish I. Patel Independent Director Chairman(ii) Shri Tse Ten Dorji Independent Director Member(iii) Shri Manoj Kumar Mittal Independent Director Member(Iv) ShriVivekkumarDewangan(w.e.f.26.04.2018) Govt. Nominee Director Member(v) ShriSunilKumarSharma(w.e.f.20.09.2018) Independent Director Member
The Company Secretary is the Secretary of the Committee.Meetings of Audit CommitteeAsperSEBILODR,theAuditCommitteeisrequiredtomeetatleastfourtimesinayearandnotmorethanonehundredtwentydayselapsebetween twomeetings. The quorum for theAudit Committeemeetings is either twomembers or one third of themembers of theAuditCommittee whichever is greater, but there should be a minimum of two independent directors present.Powers of Audit CommitteeThe powers of the Audit Committee include the following: 1. To investigate any activity within its terms of reference.2. To seek information on and from any employee. 3. To obtain outside legal or other professional advice.
115
4. Tosecureattendanceofoutsiderswithrelevantexpertise,ifitconsidersnecessary.5. To protect whistle blowers.6. To consider other matters as referred by the Board.Role of Audit CommitteeThe Role of Audit Committee includes the following:1. OversightofourCompany’sfinancialreportingprocessandthedisclosureofitsfinancialinformationtoensurethatthefinancialstatement
iscorrect,sufficientandcredible.2. RecommendingtotheBoardregardingfixationofauditfeetobepaidtostatutoryauditorsappointedbytheComptroller&AuditorGeneral
under the Companies Act and approval for payment with respect to any other services rendered by the statutory auditors.3. Reviewing,with themanagement, theStandaloneandConsolidatedannual financial statements andAuditors’Report thereonbefore
submission to the Board for approval, with particular reference to: a. MattersrequiredtobeincludedintheDirector’sResponsibilityStatementtobeincludedintheBoard’sreportintermsofClause(c)
ofSub-section3ofSection134oftheCompaniesAct,2013. b. Changes, if any, in accounting policies and practices and reasons for the same. c. Majoraccountingentriesinvolvingestimatesbasedontheexerciseofjudgmentbymanagement. d. Significantadjustmentsmadeinthefinancialstatementsarisingoutofauditfindings. e. Compliancewithlistingandotherlegalrequirementsrelatingtofinancialstatements. f. Disclosure of any related party transactions. g. Qualifications/modifiedopinionsinthedraftauditreport.4. Reviewing/examining,withthemanagement,thequarterlyStandalonefinancialstatementsandconsolidatedquarterlyfinancialstatements
alongwithLimitedReviewReportbytheStatutoryAuditorsoftheCompanyofalltheentities/companieswhoseAccountsaretobeconsolidated, before submission to the Board for approval.
5. Reviewing, with themanagement, the statement of uses / application of funds raised through an issue (public issue, rights issue,preferentialissue,etc.),thestatementoffundsutilizedforpurposesotherthanthosestatedintheofferdocument/prospectus/noticeandthereportsubmittedbythemonitoringagencymonitoringtheenduse/utilizationofproceedsofapublicorrightsissue&relatedmatters and making appropriate recommendations to the Board to take up steps in this matter.
6. Reviewing,withthemanagement,performanceofstatutoryandinternalauditorsandadequacyoftheinternalcontrolsystems.7. Reviewingtheadequacyofinternalauditfunction,ifany,includingthestructureoftheinternalauditdepartment,staffingandseniorityof
theofficialheadingthedepartment,reportingstructure,coverageandfrequencyofinternalaudit.8. Discussingwithinternalauditorsand/orauditorsanysignificantfindingsandfollowupthereon.9. Reviewingthefindingsofanyinternalinvestigationsbytheinternalauditors/auditors/agenciesintomatterswherethereissuspected
fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.10. Discussingwithstatutoryauditorsbeforetheauditcommences,aboutthenatureandscopeofauditaswellaspost-auditdiscussionto
ascertain any area of concern.11. Tolookintothereasonsforsubstantialdefaultsinthepaymenttothedepositors,debentureholders,shareholders(incaseofnon-payment
of declared dividends) and creditors.12. Toreview/overseethefunctioningofvigilmechanism/WhistleBlowermechanismoftheCompany.13. ToreviewthefollowupactionontheauditobservationsintheComptroller&AuditorGeneralaudit.14. ToreviewthefollowupactiontakenontherecommendationsofCommitteeonPublicUndertakings(COPU)oftheParliament.15. Provide an open avenue of communication between the independent auditor, internal auditor and the Board.16. Approvaloranysubsequentmodificationoftransactionsofthecompanywithrelatedparties.17. Review all related party transactions in the Company. For this purpose, the Audit Committee may designate a member who shall be
responsibleforreviewingrelatedpartytransactions; The term “related party transactions” shall have the same meaning as provided in Regulation 2 (zc) of the SEBI (LODR).18. Reviewingwiththeindependentauditortheco-ordinationofauditeffortstoensurecompletenessofcoverage,reductionofredundant
efforts,andtheeffectiveuseofallauditresources.19. Considering and review the following with the independent auditor and the management: a. Theadequacyofinternalcontrolsincludingcomputerizedinformationsystemcontrolsandsecurity;and b. relatedfindingsandrecommendationsoftheindependentauditorandinternalauditor,togetherwiththemanagementresponses.20. Considering and reviewing the following with the management, internal auditor and the independent auditor: a. Significantfindingsduringtheyear,includingthestatusofpreviousauditrecommendations;and b. Anydifficultiesencounteredduringauditworkincludinganyrestrictionsonthescopeofactivitiesoraccesstorequiredinformation.21. ReviewingandmonitoringtheAuditor’sindependenceandperformance,andeffectivenessofauditprocess.22. Scrutinyofinter-corporateloansandinvestments.
116
23. Valuation of undertakings or assets of the Company, whenever it is necessary.24. Evaluation of Internal Financial Controls and Risk Management Systems.25. ReviewingthecompliancewiththeprovisionsofSEBI(ProhibitionofInsiderTrading)(Amendment)Regulations,2018atleastonceina
financialyearandverifyingthatthesystemsforinternalcontrolareadequateandareoperatingeffectively.26. Reviewingtheutilizationofloansand/oradvancesfrom/investmentbytheCompanyintheSubsidiaryexceeding`100croreor10%of
theassetsizeofthesubsidiary,whicheverislowerincludingexistingloans/advances/investmentsexistingasonthedate.27. Carrying out any other function as is mentioned in the terms of reference of the Audit Committee under the Companies Act, 2013, SEBI
(ListingObligationsandDisclosureRequirements)Regulations,2015andDPEGuidelinesonCorporateGovernanceforCPSEs,asamendedfrom time to time.
Review of information by Audit CommitteeThe Audit Committee shall mandatorily review the following information:1. Managementdiscussionandanalysisoffinancialconditionandresultsofoperations.2. Statementofsignificantrelatedpartytransactionssubmittedbymanagement.3. Managementletters/lettersofinternalcontrolweaknessesissuedbythestatutoryauditors.4. Internal audit reports relating to internal control weaknesses.5. The appointment, removal and terms of remuneration of the chief internal auditor.6. Certification/declarationoffinancialstatementsbytheChiefExecutiveOfficer/ChiefFinancialOfficer.7. Statement of deviations: (a) quarterlystatementofdeviation(s)includingreportofmonitoringagency,ifapplicable,submittedtostockexchange(s)intermsof
Regulation 32(1). (b) annualstatementoffundsutilizedforpurposesotherthanthosestatedintheofferdocument/prospectus/noticeintermsofRegulation
32(7).”Attendance:Duringthefinancialyearended31st March 2019, twelve meetings of the Audit committee were held on 1stMay2018,29thMay2018,10th July2018,18thJuly2018,31stJuly2018,21stAugust2018,20thSeptember2018,5thNovember2018,5thDecember2018,3rd January 2019, 31st January, 2019 and 7th March, 2019.Attendance at Audit Committee Meetings during the Financial Year 2018-19:
Name of the Audit Committee Member Meetings held during respective tenure of Members
No. of Meetings attended
% of Attendance of Audit Committee Meeting
Shri Jagdish I. Patel 12 11 91.67%Shri Tse Ten Dorji 12 12 100%Shri Manoj Kumar Mittal 12 12 100%ShriVivekkumarDewangan(w.e.f.26.04.2018) 12 10 83.33%ShriSunilKumarSharma(w.e.f.20.09.2018) 05 05 100%
3.2 Nomination and Remuneration Committee
YourCompanyhasconstitutedNominationandRemunerationCommitteeinlinewiththeprovisionsofSection178oftheCompaniesAct,2013andRegulation19ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.
As on 31st March 2019, the Nomination and Remuneration Committee comprised the following Directors:
Shri Jagdish I. Patel Non-officialPart-timeDirector ChairmanShri Tse Ten Dorji Non-officialPart-timeDirector MemberShri Manoj Kumar Mittal Non-officialPart-timeDirector MemberSmt.A.R.Mahalakshmi(w.e.f.20.09.2018) Non-officialPart-timeDirector MemberShri Ghansyam Prasad (w.e.f. 06.03.2019) Govt. Nominee Director MemberShriVivekKumarDewangan(w.e.f.26.04.2018) Govt. Nominee Director MemberShri Ravi P. Singh Director(Personnel)&CMD Member
The Nomination and Remuneration Committee decides the annual bonus/variable pay pool and policy for its distribution across theemployees within the prescribed limits.
FourmeetingsoftheNominationandRemunerationcommitteewereheldduringtheFinancialYear2018-19i.e.on29thMay,2018,20thSeptember,2018,5thNovember,2018and7thMarch,2019.
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Attendance at Nomination and Remuneration Committee Meetings during the Financial Year 2018-19:
Name of the Nomination and Remuneration Committee Member
Meetings held during respective tenure of
Members
No. of Meetings attended
% of Attendance of Nomination and
Remuneration Committee Meeting
Shri Jagdish I. Patel 4 4 100%
Shri I. S. Jha (up to 21.01.2019) 3 3 100%
Shri Ravi P. Singh (w.e.f. 21.01.2019) 1 1 100%
Shri Tse Ten Dorji 4 4 100%
Shri Manoj Kumar Mittal 4 4 100%
Ms. Bharati (up to 13.02.2019) 3 3 100%
ShriVivekKumarDewangan(w.e.f.26.04.2018) 4 2 50%
Smt.A.R.Mahalakshmi(w.e.f.20.09.2018) 2 2 100%
Shri Ghansyam Prasad (w.e.f. 06.03.2019) 1 1 100%
Performance Evaluation of Directors TherequirementofperformanceevaluationofDirectorsunderSection178(2)of theCompaniesAct,2013hasbeendoneawaywith
forGovernmentCompaniesvideMinistryofCorporateAffairs’(MCA)Notificationdt.5thJune,2015.Further,MCAvide itsnotificationdated05thJuly,2017hasmadeanamendmentintheScheduleIVoftheAct,wherebyithasexemptedGovernmentCompaniesfromcomplyingwiththerequirementofperformanceevaluationbytheIndependentDirectorsofNon-independentDirectorsandChairmanandperformanceevaluationoftheIndependentDirectorsbytheBoard,iftheconcerneddepartmentsorministrieshavespecifiedtheserequirements.Inthisregard,theDepartmentofPublicEnterprises(DPE)hasalsolaiddownamechanismforperformanceappraisalofallFunctionalDirectors.DPEhasalsoinitiatedevaluationofIndependentDirectors.TheCompanyentersintoMemorandumofUnderstanding(MoU)withMinistryofPower(MoP)everyyearwhereinCompanyisevaluatedonvariousfinancialandnon-financialparameters.TheperformanceoftheCompany&BoardofDirectorsisevaluatedbytheDPEintermsofMoUenteredintowithMoP.
Separate Meeting of Independent Directors: AspertheGuidelinesissuedbyDPEonRole&ResponsibilitiesofNon-OfficialDirectors(IndependentDirectors)ofCPSEs,Codeof
Conduct for Independent Directors prescribed under the Companies Act, 2013 and Regulation 25 of SEBI LODR, a separate meeting oftheIndependentDirectorsisrequiredtobeheldatleastonceinayearto,inter-alia:
(i) reviewtheperformanceofthenon-independentdirectorsandtheBoardasawhole; (ii) reviewtheperformanceoftheChairpersonoftheCompany,taking intoaccounttheviewsofexecutivedirectorsandnon-
executivedirectors;and (iii) assessthequality,quantityandtimelinessofflowofinformationbetweenthemanagementoftheCompanyandtheBoardof
DirectorsthatisnecessaryfortheBoardtoeffectivelyandreasonablyperformtheirduties. AseparatemeetingofIndependentDirectorswasheldon14thMarch,2019.ThemeetingwasattendedbyallfiveIndependentDirectors.
In thismeeting, IndependentDirectorsassessed theperformanceof theBoardasawhole, theperformanceofNon-IndependentDirectors includingChairman&ManagingDirectorandalsothequality,quantityandtimelinessofflowof informationbetweentheCompanymanagementandtheBoardwhichisnecessaryfortheBoardtoeffectivelyandreasonablyperformtheirduties.
3.3 Stakeholders’ Relationship Committee TheCompanyhasconstitutedStakeholders’RelationshipCommitteeinlinewiththeprovisionsofSection178(5)oftheCompaniesAct,
2013andRegulation20ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015. Scope of the Committee ThescopeoftheCommitteeistospecificallyconsiderandresolvethegrievancesofshareholders,debenture-holders,andothersecurity
holdersof the company including the complaints related to transfer of shares, non-receipt of balance sheet, non-receipt of declareddividends, etc. of the Company.
Composition of Stakeholders’ Relationship Committee during the F.Y. 2018-19 As on 31st March 2019, the Stakeholder Relationship Committee comprised the following Directors:
Shri Jagdish I. Patel NonOfficialParttimeDirector ChairmanShri Manoj Kumar Mittal NonOfficialParttimeDirector Member
Smt.A.R.Mahalakshmi(w.e.f.20.09.2018) NonOfficialParttimeDirector Member
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Shri Ravi P. Singh Director(Personnel)&CMD MemberShri K. Sreekant Director (Finance) Member
The Company Secretary is the Secretary of the Committee. TwomeetingsoftheStakeholders’RelationshipCommitteewereheldduringthefinancialyear2018-19i.e.on21stAugust,2018and7th
March, 2019. Attendance at Stakeholders’ Relationship Committee meeting during the Financial Year 2018-19:
Name Shareholders’/Investors’ Grievance Committee Meeting held during the tenure
% of Attendance of Stakeholders’ Relationship
Committee MeetingHeld AttendedShri Jagdish I. Patel 2 1 50%Shri Manoj Kumar Mittal 2 2 100%Smt. A. R. Mahalakshmi(w.e.f.20.09.2018)
1 1 100%
Shri Ravi P. Singh 2 2 100%Shri K. Sreekant 2 2 100%
Name and designation of Compliance Officer Ms.DivyaTandon,ChiefGeneralManager&CompanySecretaryistheComplianceOfficerintermsofSEBI(LODR)Regulations,2015. Investors’ Grievances Duringthefinancialyearending31stMarch2019,theCompanyhasattendedtoinvestors’grievancesexpeditiouslyexceptforthecases
constrained by disputes or legal impediment. The details of the complaints received and disposed of during the year are as under:
S. No. Description Opening Balance Received Attended Pending1 Non receipt of refund orders 0 15 15 0
2 Non receipt of dividend warrants 0 1672 1672 03 Nonreceiptofsharecertificate 0 42 42 04 SEBI 0 18 16 25 StockExchange 0 4 4 06 Advocate Notices 0 0 0 07 ConsumerForum/Courtcases 0 0 0 0
Total 0 1,751 1749 2
Shares lying in Share Escrow Account InpursuanceofScheduleV(F)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,detailsofshareslyinginthe
shares escrow account are as under:
SHARES IN THE SHARE ESCROW ACCOUNTEvent IPO FPO [2010] FPO [2013]
No. of Shareholders No. of Shares No. of Shareholders
No. of Shares
No. of Shareholders
No. of Shares
Ason01.04.2018 4 970 18 3439 0 0Transfers during the year2018-19
0 0 18 3439 0 0
As on 31.03.2019 4 970 0 0 0 0 The voting rights on the shares in the Escrow Account will remain frozen till the rightful owner of such shares claims the shares. These
sharesarelyinginDematforminaPoolAccountwiththeRegistrarsi.e.M/sKarvyFintechPrivateLimitedandthebenefitsaccruedonthem are being properly accounted for.
Centralized Web Based Complaint Redressal System- SCORES The centralized web based Complaint Redressal System of SEBI i.e. SCORES (SEBI Complaints Redress System) is in place since June
2011.ThroughSCORES,shareholderscanregistertheircomplaintsagainsttheCompanyforredressal.Whenthecomplaintisregistered,auniquecomplaintregistrationnumberisallottedforfuturereferenceandtracking.Statusofeverycomplaintlodgedcanalsobeviewedonline and the Shareholder can send reminder for their complaint. Your Company takes action for redressal of the complaints and uploads ActionTakenReporton line.SEBIdisposesoffthecomplaints if it issatisfiedthat thecomplaintshavebeenredressedadequately.A
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Shareholder,whoisnotaccessingSCOREScanlodgehis/hercomplaintinphysicalformalso. Remuneration of Directors POWERGRID,beingaGovernmentCompany,theappointment,tenureandremunerationofDirectorsisdecidedbythePresidentofIndia.
RemunerationpaidtoChairman&ManagingDirectorandFunctionalDirectorsduringtheYear2018-19wasaspertermsandconditionsoftheirappointment.IndependentDirectorsarepaidonlysittingfeeperBoard/Committeemeetingattended{ratefixedbytheBoardwithintheceilingfixedforpaymentofsittingfeewithoutGovernmentapprovalundertheRule4oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014readwiththeSection197oftheCompaniesAct,2013}andinaccordancewiththeGovernment Guidelines for attending the Board Meeting as well as Committee Meetings.
TheremunerationpaidtotheWholetimeDirectorsduringtheyear2018-19isasunder:
S No.
Directors Designation Salary (in `) Benefits (in `) Bonus /Commission
(in `)
Performance Linked Incentive
(in ` )
Total (in `)
1. Shri Ravi P. Singh Director (Personnel)&
CMD
50,99,150 12,50,721.5 41,30,310 1,04,80,181.5
2. Shri I. S. Jha (upto 21st January 2019)
Chairman&Managing Director
65,91,923 13,19,988 63,92,749 1,43,04,660
3. Shri K. Sreekant Director (Finance)
45,74,273 9,97,838 37,19,872 92,91,983
4. Ms. Seema Gupta Director (Operations)
56,22,397 11,00,261.38 27,06,306 94,28,964.38
5. Shri R. K. Chauhan (w.e.f. 23rd August, 2018)
Director (Projects)
25,07,462 8,99,913 23,63,363 57,70,738
6. Shri Prabhakar Singh (upto 30th June,2018)
Director (Projects)
34,08,664 3,47,183 38,69,027 76,24,874
TheGovernmentNomineesDirectorsonthePOWERGRID’sBoarddonotdrawanyremuneration/sittingfeeforattendingBoard/Committeemeetings from the Company. The Independent Directors were paid sitting fee of `20,000/-permeetingforattendingBoard/CommitteeMeetings.
DetailsofPaymentmadetowardssittingfeetoIndependentDirectorsduringtheyear2018-19aregivenbelow:(` in lacs.)
Name of Non-official Part-time Directors Sitting Fee Total (`)Board Meeting (`) Committee of Board of
Directors Meeting (`)Shri Jagdish I. Patel 2.60 6.80 9.40Shri Tse Ten Dorji 2.60 8.40 11.00Shri Manoj Kumar Mittal 2.60 5.20 7.80Smt. A. R. Mahalakshmi 1.60 3.20 4.80Shri Sunil Kumar Sharma 1.60 2.60 4.20
As on 31.03.2019, the Directors’ Shareholding were as under:
S. No. Name of Directors No. of Equity Shares Held1. Shri Ravi P. Singh 9,0162. Shri K. Sreekant 1,0293. Ms. Seema Gupta 8,8074. Shri R. K. Chauhan 15. Shri Vivek kumar Dewangan NIL6. Shri Ghanshyam Prasad NIL7. Shri Jagdish I. Patel NIL8. Shri Tse Ten Dorji NIL9. Shri Manoj Kumar Mittal NIL
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10. Smt. A. R. Mahalakshmi NIL11. Shri Sunil Kumar Sharma NIL
3.4 CSR Committee POWERGRIDhas constituted aCSRCommittee in linewith the requirements of theCompaniesAct, 2013andDepartment of Public
Enterprises’ Guidelines on Corporate Social Responsibility and Sustainability for Central Public Sector Enterprises’. As on 31st March 2019, the CSR Committee comprised following directors as members:
Shri Ravi P. Singh Director(Personnel)&CMD ChairmanShri K. Sreekant Director (Finance) MemberMrs. Seema Gupta Director (Operations) MemberShri R. K. Chauhan Director (Projects) MemberShri Jagdish I. Patel Non-officialPart-timeDirector MemberShri Tse Ten Dorji Non-officialPart-timeDirector MemberShri Sunil Kumar Sharma Non-officialPart-timeDirector MemberSmt. A. R. Mahalakshmi Non-officialPart-timeDirector MemberShri Ghanshyam Prasad Chief Engineer, Govt. Nominee Director Member
ElevenmeetingsoftheCSRCommitteewereheldduringthefinancialyear2018-19.
3.5 Risk Management Committee
POWERGRID had constituted RiskManagement Committee in linewith the requirement of SEBI LODRAs on 31st March 2019, the Committee comprises of following Directors as members:
Shri Ravi P Singh Director(Personnel)&CMD ChairmanShri K. Sreekant Director (Finance) MemberShri R. K. Chauhan Director (Projects) Member
ThreemeetingsofRiskManagementCommitteewereheldduringtheFinancialYear2018-19.
The‘EnterpriseRiskManagementFramework’(ERMframework)hasbeenimplementedinPOWERGRID.Thedetailsofthesamearegivenin Management Discussion and Analysis.
Apart from the constitution of mandatory committees, the Board has constituted various committees viz. (i) Committee on Investment on Projects(ii)CommitteeonAwardofContracts(iii)CommitteeforTransfer/Split/Rematerializationetc.ofShares(iv)CommitteeforBonds(V)CommitteeforAwardofContractsrelatingtoREandotherDepositWorksforfacilitatingthedaytodaybusinessofthecompany.
4. Monitoring of Subsidiaries
TheCompanydoesnot haveanymaterial unlistedSubsidiaryCompany in termsof SEBI LODRor the subsidiaries asdefinedunderGuidelines on Corporate Governance for Central Public Sector Enterprises issued by Department of Public Enterprises, Govt. of India. However, minutes of the meeting of the Board of Directors of the subsidiaries are placed before the Company’s Board periodically along withstatusofsubsidiaries.Further,pursuanttoRegulations16(c)and43oftheSEBILODR,POWERGRIDhasformulatedapolicyfordetermining ‘material’ subsidiaries and the policy has been disclosed on the company’s website and a web link thereto is also given as under:
https://www.powergridindia.com/code-conductpolicies
5. General Body Meetings
Date, time and location where the last three Annual General Meetings were held are as under:
Year Date Time Venue Special Resolution2015-16 16 September 2016 11.00 a.m. Manekshaw Centre, Parade Road, Delhi Cantt., New Delhi 12016-17 19 September 2017 11.00 a.m. Manekshaw Centre, Parade Road, Delhi Cantt., New Delhi 42017-18 18September2018 11.00 a.m. Manekshaw Centre, Parade Road, Delhi Cantt., New Delhi 1
Resolutions passed through Postal Ballot:
TheShareholdersoftheCompanyhaveapprovedwithrequisitemajority,theSpecialResolutionsundertheprovisionsofCompaniesAct,
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2013 for:
1. Altering the Objects Clause of the Memorandum of Association, and
2. IncreasinginShareholdinglimitofForeignPortfolioInvestors(FPIs)includingForeignInstitutionalInvestors(FIIs)inPOWERGRID.
Noticedated5thNovember,2018wasservedtoallshareholdersforvotingthroughpostalballotasperprovisionofSection110oftheCompanies Act, 2013 read with the Companies (Management and Administration) Rules, 2014. Ms. Savita Jyoti, Practicing Company Secretary was appointed as scrutinizer for conduct of Postal Ballot. The detail of voting are as under:
1. Altering the Objects Clause of the Memorandum of Association.
Promoter / Public
No. of Shares Held
(1)
No. of Votes Polled
(2)
% of Votes Polled on
Outstanding shares (3) = (2/1)*100
No. of Votes in favour
(4)
No. of Votes against
(5)
% of Votes in favor on Votes
Polled (6) = (4/2)*100
% of Votes against on
votes polled (7) = (5/2)
*100Prompter and Promoter Group
2947376901 2947376901 100.00 2947376901 0 100.0000 0
Public–Institutional Holders
2044270273 1784066988 87.2716 1784066988 0 100.0000 0
Public–Others
239942474 44935553 18.7276 44924148 11405 99.9746 0.0254
Total 5231589648 4776379442 91.2988 4776368037 11405 99.9998 0.0002
2. Increasing in Shareholding limit of Foreign Portfolio Investors (FPIs) including Foreign Institutional Investors (FIIs) in POWERGRID.
Promoter / Public
No. of Shares Held (1)
No. of Votes Polled
(2)
% of Votes Polled on
Outstanding shares (3) = (2/1)*100
No. of Votes in favour
(4)
No. of Votes against
(5)
% of Votes in favor on Votes
Polled (6) = (4/2)*100
% of Votes against on
votes polled (7) = (5/2)
*100Prompter and Promoter Group
2947376901 2947376901 100.00 2947376901 0 100.0000 0
Public–Institutional Holders
2044270273 1784066988 87.2716 1784066988 0 100.0000 0
Public–Others
239942474 44933270 18.7267 44912649 20621 99.9541 0.0459
Total 5231589648 4776377159 91.2988 4776356538 20621 99.9996 0.0004
6. Credit rating
POWERGRIDhasavailedthefollowingratingfromthecreditratingagenciesduringtheFY2018-19:
Rating by Domestic Rating Agency:
Sr. No.
Credit Rating Agency Rating for Long term Debt Instrument / Bank Borrowing
Rating for Short term Bank Borrowing
Rating for Commercial Paper
1. ICRA (ICRA) AAA (Stable) (ICRA)A1+ (ICRA)A1+2. CRISIL CRISILAAA/Stable CRISILA+ CRISILA+3. CARE CEREAAA;Stable CAREA+ CAREA1+
Rating by Foreign Rating Agency:
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Sr. No. Credit Rating Agency Rating Assigned1. Moody’s Investor Service Inc. Baa2 Outlook: Stable2. S&P BBB(-)Outlook:Stable3. Fitch BBB(-)Outlook:Stable
7. Disclosures:
(I) The transactions with related parties contain (i) payment to Companies under Joint Venture Agreement and on account of contracts forworks/services,(ii)remunerationtokeymanagementpersonneland(iii)equitycontributiontosubsidiaries,whicharenotinthenatureofpotentialconflictsofinterestoftheCompanyatlarge.DetailsofrelatedpartytransactionsareincludedintheNotestotheAccountsasperIndianAccountingStandards–IndAS-24notifiedbytheCentralGovernment.
(II) POWERGRIDdonothaveanymaterialnonlistedIndianSubsidiaryCompany.
(III) POWERGRIDestablishedEnterpriseRiskManagementFrameworkandInternalControlFrameworkforCEO/CFOCertification.GeneralManager(CorporatePlanning)hasbeenappointedasChiefRiskOfficeroftheCompany.
(IV) There are no material individual transactions with related parties which are not in the normal course of business.
(V) There are no material individual transactions with related parties or others, which are not on an arm’s length basis. Further, pursuant toRegulation23SEBILODR,POWERGRIDhasformulatedapolicyonmaterialityofrelatedpartytransactionsanddisclosethesameonthewebsiteofPOWERGRIDandaweblinkisprovidedasunder:
https://www.powergridindia.com/code-conductpolicies
(VI)TheCompanyhascompliedwiththerequirementsoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015and Guidelines on Corporate Governance for Central Public Sector Enterprises issued by Ministry of Heavy Industries and Public Enterprises,DepartmentofPublicEnterprises,GovernmentofIndiaexceptthattheCompanyisnon-compliantw.r.t.compositionofBoardofDirectorsduetonon-nominationoftherequisitenumberofIndependentDirectorsbytheGovernmentofIndia.TherewerenopenaltiesorstricturesimposedontheCompanybyanystatutoryauthoritiesfornon-complianceonanymatterrelatedtocapitalmarkets, during the year.
(VII)TheCompanyhasseparateVigilanceDepartmentwhichdealswithfraudorsuspectedfraudinvolvingemployees/representativesofsuppliers,contractors,consultants,serviceprovider,oranyotherpartydoingbusinesswithPOWERGRID.WhistleBlowerandFraudPreventionPolicyhavebeenapprovedbytheBoardofDirectorsandthesamehasbeenuploadedonthewebsiteofPOWERGRID.TheweblinkoftheWhistleBlowerandFraudPreventionPolicyisasunder:
https://www.powergridindia.com/code-conductpolicies
(VIII)TheFinancialStatementsforthefinancialyear2018-19havebeenpreparedaspertheIndianAccountingStandardsnotifiedunderSection 133 of the Companies Act, 2013.
(IX) Informationonadoption(andcompliance)/Non-adoptionofthenon-mandatoryrequirementsisatAnnexure-A.
(X) ThecompliancewithCorporateGovernancerequirementsspecifiedinRegulation17to27andClauses(b)to(i)ofsub-regulation(2)of regulation 46 of SEBI LODR have been made.
(XI)CertificatePursuanttoRegulation34(3)andScheduleVParaCclause(10)(i)ofSEBILODR,2015hasbeenobtainedfromCompanySecretary in Practice.
CEO/CFO Certification
As required by Regulation 17 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the ComplianceCertificateasspecifiedinPartBofScheduleIIofthesaidRegulationdulysignedbyShriRaviP.Singh,Director(Personnel)&CMDandShri K. Sreekant, Director (Finance) was placed before the Board of Directors at the meeting held on 29th May, 2019.
8. Means of Communication
The Company communicates with its shareholders through its Annual Report, General Meeting, Newspapers and disclosure through website.
The Company also communicates with its Institutional shareholders through Analysts and Investors meets held during the end of each quarterwhereDirectorsandSeniorOfficialsoftheCompanyinteractwiththeinvestingcommunity.
Information and latest updates and announcements made by the Company can be accessed at Company’s website: www.powergridindia.com including the following:
• Quarterly/Half-Yearly/AnnualFinancialResults • QuarterlyShareholdingPattern • QuarterlyCorporateGovernanceReport • CorporatedisclosuresmadefromtimetotimetoStockExchanges
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In order to save trees and environment by cutting down the consumption of costly paper, your Company has started sending the Annual Report and other communications throughemail to the shareholders from the Financial Year 2010-2011onwards after seeking theirconsent.
Quarterly Results
Publication of Financial Results in Newspapers
Sl. No.
Publication of Financial Results for the quarter ended
Date(s) of publication
Newspapers
1. 30.06.2018 02.08.2018&03.08.2018
Times of India, Economic Times, Hindustan Times, Mint, Business Standard, The Hindu, Business Line, Statesman, Indian Express, Financial Express, Jansatta,DNA,AmarUjala,DivyaBhaskar,AAj
2. 30.09.2018 06.11.2018&09.11.2018
Times of India, Economic Times, Hindustan Times, Mint, Business Standard, The Hindu, Business Line, Telegraph, Indian Express, Financial Express, Jansatta,MidDay,AmarUjala,RajasthanPatrika,FreePressJournal,Navshakti
3. 31.12.2018 01.02.2019 &02.02.2019
Times of India, Economic Times, Hindustan Times, Mint, Pioneer, New Indian Express,,DainikJagran,Statesman,IndianExpress,FinancialExpress,Jansatta,DNA, Hinduatan, Free Press Journal, Navshakti, Business Standard, Rajasthan Patrika, Financial Chronicle
4. 31.03.2019 30.05.2019&31.05.2019
Times of India, Economic Times, Hindustan Times, Mint, Business Line, The Statesman,Hindustan, Pioneer, Financial Express, Jansatta,DeccanChronicle,Mail Today, Mid Day
These Results are also displayed at Company’s website www.powergridindia.com
Official Releases and Presentations TheCompany’sofficialnewsreleases,otherpresscoverage,presentationsmadetoinstitutionalinvestorsortotheanalystsarealsohosted
ontheWebsite.9. Code of Conduct TheBoardofDirectorshavelaiddowntwoseparateCodesofConduct–oneforBoardMembersandanotherforSeniorManagement
PersonnelinalignmentwithCompany’sMission&Objectivesandaimsatenhancingethicalandtransparentprocessinmanagingtheaffairsof the Company. The ‘Code of Business Conduct and Ethics for Board members’ and the ‘Code of Business Conduct and Ethics for Senior Management Personnel’ are available at the website of the Company.
Declaration required under Regulation 26 (3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 AllthemembersoftheBoardandSeniorManagementPersonnelhaveaffirmedcompliancewiththeCodeofBusinessConductandEthics
forthefinancialyearended31st March, 2019. Place: New Delhi (Ravi P. Singh) Date: 1stJuly,2019 Director(Personnel)&CMD
10. Code of Insider Trading
InpursuanceoftheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015andasamendedfromtimetotime,POWERGRIDBoardhaslaiddown“CodeofPractices&ProceduresforFairDisclosureofUnpublishedPriceSensitiveInformationandConductforRegulating,Monitoring&ReportingofTradinginthesecuritiesofPowerGridCorporationofIndiaLimited”byInsidersofPowerGridCorporationofIndiaLimitedwithanaimthat‘DesignatedPersons’shallnotderiveanybenefitorassistotherstoderiveanybenefitfromtheaccesstoandpossessionofUnpublishedPriceSensitiveInformationabouttheCompanywhichisnotinthepublicdomainandthusconstitutesinsiderinformation.CompanySecretaryhasbeendesignatedasComplianceOfficerforthisCode.
11. Familiarization program for Independent Directors:
The Company familiarizes the independent directors with the activities and functioning of the company and their roles, rights, responsibilities in the company, nature of the industry in which the company operates, business model of the company, etc., through various programmes and presentations. The details of such familiarization programmes are disclosed on the company’s website and a web link thereto is also given as under:
https://www.powergridindia.com/familiarisation-programme-independent-directors
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12. Disclosures in relation to the sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
Sr. No. Particulars No. of Complaints
1. NumberofComplaintsfiledduringFY2018-19 0
2. NumberofComplaintsdisposedofduringFY2018-19 0
3. NumberofComplaintspendingasonendoftheFY2018-19 0
13. A chart or matrix setting out the skills / expertise / competencies identified of the board as required in the context of its business (es) and sector(s) for an efficient functioning.
POWERGRID,beingaGovt.CompanywithinthemeaningofSection2(45)oftheCompaniesAct,2013,thepowertoappointfunctional/OfficialPart-timeDirectors/non-OfficialPart-timeDirectors(IndependentDirectors)areappointedbythePresidentofIndia.Thus,skills/expertise/competenciesofanincumbentarewithinthepurviewofGovt.ofIndia.
14. General Shareholders’ Information
i) Annual General Meeting
Date : 27th August, 2019
Time : 11:00 AM
Venue : Manekshaw Centre, Parade Road, Delhi Cantt., New Delhi
ii) Financial Year
The Company’s Financial Year is from 1st April to 31st March.
iii) Book Closure
The Register of Members and Share Transfer Books of the Company will remain closed from 21st August, 2019 to 27th August, 2019 (both days inclusive).
iv) Payment of dividend
TheBoardofDirectorsoftheCompanyhasrecommendeddeclarationofafinalDividendof`2.50pershare(25%)forthefinancialyear ended 31st March, 2019. In addition, an Interim Dividend of `5.83pershare(58.3%)waspaidon22ndMarch,2019.[Dividendpaid in the Previous Year was `5.25pershare(52.50%)].
The record date for the payment of Dividend is 20th August,2019.
v) Dividend History
Year Total Paid-up Capital as on 31st March of the
Year (` in Crore)
Total Amount of Dividend Paid for the Financial Year (` in
Crore)
Date of AGM in which dividend was
declared
Date of Payment of Final Dividend
2010-11 4629.73 810.23 19.09.2011 07.10.2011
2011-12 4629.73 976.87 19.09.2012 08.10.2012
2012-13 4629.73 1,273.17 19.09.2013 10.10.2013
2013-14 5231.59 1,349.75 18.09.2014 09.10.2014
2014-15 5231.59 1,046.32 15.09.2015 06.10.2015
2015-16 5231.59 1,208.50 16.09.2016 06.10.2016
2016-17 5231.59 2275.75 19.09.2017 04.10.2017
2017-18 5231.59 2746.58 18.09.2018 26.09.2018
2018-19 5231.59 ^3050.02 ^^07.03.2019 ^^^22/03/2019
^AmountofInterimDividend ^^DateofBoardMeetingdeclaringInterimDividend ^^^DateofPaymentofInterimDividend
125
vi) Listing on Stock Exchange POWERGRIDequitysharesarelistedonthefollowingStockExchanges:
National Stock Exchange of India Limited. ExchangePlaza,PlotNo.C/1,GBlock,Bandra-KurlaComplex,Bandra(E),Mumbai-400051.
BSE LimitedPhiroze Jeejeebhoy Towers,Dalal Street,Mumbai–400001
Scrip Code : POWERGRID EQ Scrip Code: 532898Stock Code: ISIN – INE752E01010
ThepaymentofannuallistingfeefortheFinancialYear2018-19hasbeenmadetoNationalStockExchangeofIndiaLimitedandBSELtd.
vii) POWERGRID’s Shares Market Price Data - NSE
High (`) Low (`) Sum of Turnover in Lac (`) during the Month
April,2018 210.00 192.90 1,78,215.85May,2018 216.00 201.60 7,78,002.32June,2018 207.90 183.15 2,60,164.01July,2018 189.25 174.10 2,20,776.78August,2018 202.25 180.15 1,68,267.81September,2018 205.00 186.20 1,90,665.92October,2018 193.90 178.80 1,49,674.69November,2018 192.90 177.80 1,43,677.46December,2018 200.00 176.65 2,28,707.60January, 2019 200.50 182.00 1,76,286.26February, 2019 191.85 172.50 3,05,964.58March, 2019 204.70 181.70 2,71,448.79
126
viii) POWERGRID’s Shares Market Price Data - BSE High (`) Low (`) Sum of Turnover in Lac (`)
during the Month April,2018 209.45 192.00 14,904.89May,2018 217.00 201.70 54,221.02June,2018 208.00 183.65 53,815.80July,2018 189.00 174.25 30,326.70August,2018 201.65 180.35 7022.13September,2018 204.70 186.10 7,405.60October,2018 193.70 179.15 8,382.50November,2018 192.65 178.05 3,652.37December,2018 199.80 176.80 13,982.31January, 2019 200.45 182.30 8,769.80February, 2019 192.00 173.05 8.090.52March, 2019 204.60 182.00 7,773.57
128
x) Registrar and Transfer Agents
EQUITY SHARESKarvy Fintech Pvt. LtdKarvySeleniumTowerB,PlotNo.31&32,Gachibowli,FinancialDistrict,Nanakramguda,Serilingampally,Hyderabad-500032.Tele:+91-40-67162222,Fax:+91-40-23420814,TollfreeNo.1800-345-4001.E-mail:einward.ris@karvy.com
BONDSMCS Limited,F-65,OkhlaIndustrialArea,Phase-I,NewDelhi-110020.Ph:011-41406148/49/51Telefax.:011-41406148E-mail:admin@mcsdel.com
xi) Share Transfer System
Entire share transfer activities under physical segment are being carried out by Karvy Fintech Pvt. Limited. The share transfer system consistsofactivitieslikereceiptofsharesalongwithtransferdeedfromtransferees,itsverification,preparationofMemorandumofTransfer,etc.SharetransfersareapprovedbyCommitteeoftheBoardforTransfer/Split/Rematerializationetc.ofShares.
PursuanttoSEBILODR,certificateonhalf-yearlybasisconfirmingduecomplianceofsharestransferformalitiesbytheCompanyfromaPracticingCompanySecretaryhavebeensubmittedtoStockExchangeswithinstipulatedtime.
xii) Shareholding as on 31st March, 2019
Sharesheldbydifferentcategoriesofshareholdersandaccordingtothesizeoftheholdingsason31st March, 2019 are given below:
According to Size
a. Distribution of shareholding according to size, % of holding as on 31st March, 2019:
Category Total Cases Total Cases % Total Shares Total Amount (`) Total Amount %
1–5000 584877 99.62 133054647 1330546470 2.545001–10000 768 0.13 5421802 54218020 0.1010001–20000 321 0.05 4475848 44758480 0.0920001–30000 118 0.02 2912312 29123120 0.0630001–40000 73 0.01 2571547 25715470 0.0540001–50000 56 0.01 2535805 25358050 0.0550001–100000 149 0.03 10601471 106014710 0.20100001&Above 747 0.13 5070016216 50700162160 96.91TOTAL 587109 100.00 5231589648 52315896480 100.00
b. Shareholding pattern as on 31st March, 2019
Sl. No. Category Total Shares % To Equity1 President of India 2896495942 55.372 FIIs/FCB/FPI 1334816887 25.513 Mutual Funds 345996819 6.614 Indian Public 132401213 2.535 Bodies Corporate 61989741 1.186 Insurance Companies 351106927 6.717 Banks&FIs 65212286 1.258 Others 40650321 0.789 NRI/OCBs 2919512 0.06
Total 5,231,589,648 100.00
129
c. Major Shareholders DetailsofShareholdersholdingmorethan1%ofthepaid-upcapitaloftheCompanyason31st March, 2019 are given below:
S. No. Name of the shareholder Shares % equity Category1 PresidentofIndia^ 279,52,26,142 53.43 POI2 Life Insurance Corporation Of India 33,53,85,684 6.41 INS3 PresidentofIndia^^ 101,269,800 1.94 POI4 HDFCTrusteeCompanyLtd.A/CHDFCBalancedAdvant
Age Fund 7,03,76,000 1.35 MUT
5 ComgestGrowthPLC-ComgestGrowthEmergingMarket 665,27,843 1.27 FPC ^representedthroughMinistryofPower ^^representedthroughMinistryofDoNER
xiii) Dematerialization of Shares The shares of the Company are in compulsory dematerialized segment and are available for trading system of both National Securities
Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). No. of shares held in dematerialized and physical mode:
S. No. Physical/Demat Number ofHolders
Number ofShares
% of total capital issued
1 Physical 13,975 39,804 0.002 Held in dematerialized form in NSDL 3,92,859 5,17,94,33,789 99.003 Held in dematerialized form in CDSL 1,80,275 5,21,16,055 1.00
Total 5,87,109 5,231,589,648 100.00
130
The name and addresses of the Depositories are as under:
1. National Securities Depository Limited
TradeWorld,4thFloor, Kamala Mills Compound, Senapathi Bapat Marg, LowerParel,Mumbai–400013.
2. Central Depository Services (India) Limited Phiroze Jeejeebhoy Towers, 17thFloor,DalalStreet,Mumbai–400023.
xiv) Outstanding GDRs/ADRs/Warrants or any Convertible instruments, conversion date and likely impact on equity NoGDRs/ADRs/WarrantsoranyConvertibleinstrumentshavebeenissuedbytheCompany.
xv) Location of POWERGRID Plants POWERGRIDhasnoplantsasitisinthebusinessofTransmissionofPower.
xvi) Address for correspondence: Power Grid Corporation of India Limited, B-9,QutabInstitutionalArea, KatwariaSarai,NewDelhi–110016. Telephone No. : 011-26560112,26560121,26564812,26564892 Fax No. : 011-26601081 Email Id:investors@powergrid.co.in
Dispatch of Documents in electronic form: Sections 101 and 136 of the Companies Act, 2013 read with the Companies (Management and Administration) Rules, 2014 and
Regulation36ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,listedcompaniesarerequiredtosupplysoft copies of the said documents to all the shareholders who have registered their email address(es) for the purpose.
Accordingly,thesaiddocumentswillbesentbye-mailtothosememberswhohaveregisteredtheire-mailaddress(es)withtheirDP/the company, in terms of the said clause.
131
Non-Mandatory Requirements
1. The Board:TheCompanyisheadedbyanexecutiveChairman.NopersonhasbeenappointedasindependentdirectorwhohasbeenaDirector,intheaggregate,exceedingaperiodofnineyearsontheBoardofPOWERGRID.
2. Shareholder Rights:Thefinancialresultsforthehalfyearended30thSeptember,2018werepublishedinTimesofIndiaandEconomicsTimesdated6thNovember,2018andalsoputuponwebsite.Separatehalfyearreporthas,however,notbeensenttoeachhouseholdofshareholders.SignificanteventshavebeendisclosedontheCompanywebsite:www.powergridindia.com.
3. Modified opinion(s) in audit report:TheStatutoryAuditorshaveissuedunmodifiedopiniononthestandaloneandtheconsolidatedfinancialstatementsoftheCompanyfortheyearended31st March, 2019.
4. Reporting of Internal Auditor: The Internal auditor directly report to the Audit Committee.
Certificate on Corporate Governance:
TheCertificateonCorporateGovernanceisbeingpublishedasanannexuretotheDirectors’Report.
For and on behalf of the Board of Directors
(Ravi P.Singh) Director (Personnel) & CMD
DIN:05240974Place: New DelhiDate: 19th July, 2019
132
Annexure-VIIIT.V. NARAYANASWAMYCOMPANY SECRETARY(CP 203)
B2/121 JanakpuriNew Delhi 110058
Phones: 25597065, 25542489Emails:
tvns@bol.net.intvns32@gmail.com
Certificate on Corporate Governance
To
The Members,
Power Grid Corporation of India Limited
IhaveexaminedthecomplianceofconditionsofcorporategovernancebyPowerGridCorporationofIndiaLimited,fortheyearendedon31stMarch2019asstipulatedintheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirement)Regulations,2015(theRegulations)inrespectofEquitySharesofthesaidCorporationwithStockExchangesandintheDPEGuidelines.
The compliance of conditions of corporate governance is the responsibility of themanagement.My examinationwas limited to theprocedures and implementation thereof, adopted by the Corporation for ensuring the compliance of the conditions of the Corporate Governance. ItisneitheranauditnoranexpressionofopiniononthefinancialstatementoftheCorporation.
Inmyopinionandtothebestofmyinformationandaccordingtotheexplanationgiventome,Icertifythat,theCorporationhasgenerallycomplied with all the conditions of Corporate Governance as stipulated in the Regulations and wherever there are deviations, the same have been indicated in the Report
IfurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCorporationnortheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCorporation.
(T.V. NARAYNASWAMY) COMPANY SECREARY
27.06.2019
133
FORM NO. AOC -2(Pursuanttoclause(h)ofsub-section(3)ofsection134oftheActandRule8(2)oftheCompanies(Accounts)Rules,2014.
FormforDisclosureofparticularsofcontracts/arrangementsenteredintobythecompanywithrelatedpartiesreferredtoinsubsection(1)ofsection188oftheCompaniesAct,2013includingcertainarmslengthtransactionunderthirdprovisothereto.
1 Details of contracts or arrangements or transactions not at arm’s length basisa) Name(s) of the related party and nature of relationship -b) Natureofcontracts/arrangements/transactions -c) Durationofthecontracts/arrangements/transactions -d) Salient terms of the contracts or arrangements or
transactions including the value, if any-
e) Justifications for entering into such contracts orarrangements or transactions
-
f) Date(s) of approval by the Board -g) Amount paid as advances, if any : -h) Date on which the special resolution was passed in
general meeting as required under first proviso tosection188
-
2 Details of material contracts or arrangement or transactions at arm’s length basis(A) a) Name(s) of the related party and nature of
relationship1. POWERGRIDNMTransmissionLimited
2. POWERGRIDVizagTransmissionLimited
3. POWERGRIDUnchaharTransmissionLimited
4. POWERGRIDKalaAmbTransmissionLimited
5. POWERGRIDJabalpurTransmissionLimited
6. POWERGRIDWaroraTransmissionLimited
7. POWERGRIDParliTransmissionLimited
8. POWERGRID Southern Interconnector Transmission SystemLimited
9. POWERGRIDMedinipurJeeratTransmissionLimited
10.POWERGRIDMithilanchalTransmissionLimited
11.POWERGRIDVaranasiTransmissionSystemLimited
12.POWERGRIDJawaharpurFirozabadTransmissionLimited
TheaforementionedProjectSPVsare100%whollyownedsubsidiariesof POWERGRID acquired by POWERGRID under Tariff BasedCompetitive Bidding (TBCB).
ANNEXURE - IX TO THE DIRECTORS’ REPORT
134
b) Nature of contracts / arrangements / transactions Part (A) POWERGRID to provide security (ies) / guarantee(s) inconnectionwithloan(s)an/oranyformofdebtincludingECBsand / or to provide inter corporate loan (s) on costto cost basis, or a combination thereof, upto an amount of `16223Crore (Rupees SixteenThousandTwoHundredTwenty Three Crore only) to aforementioned Project SPVs .However, the agreements entered into are presently limited toRs15748croreasperthefollowingamounts:1. POWERGRIDNMTransmissionLimitedRs1100Cr2. POWERGRIDVizagTransmissionLimitedRs1200Cr3. POWERGRIDUnchaharTransmissionLimitedRs90Cr4. POWERGRIDKalaAmbTransmissionLimitedRs300Cr5. POWERGRIDJabalpurTransmissionLimitedRs1400Cr6. POWERGRIDWaroraTransmissionLimitedRs2020Cr7. POWERGRIDParliTransmissionLimitedRs1780Cr8. POWERGRID Southern Interconnector Transmission System Limited Rs 2924 Cr9. POWERGRID Medinipur Jeerat Transmission Limited Rs2800Cr10. POWERGRID Mithilanchal Transmission Limited Rs 1000 Cr11. POWERGRID Varanasi Transmission System Limited Rs 756 Cr12. POWERGRIDJawaharpurFirozabadTransmissionLimitedRs378Cr
Part (B) POWERGRID to render all inputs and services asmay berequiredbytheaforementionedProjectsSPVs.
Part (C) POWERGRIDtoprovidePost-CoDactivities includingO&MconsultancyasmayberequiredbytheProjectSPVs
a) Duration of the contracts / arrangements / transactions
Part (A) As mutually agreed Part (B) As mutually agreedPart (C) As mutually agreed
b) Salient terms of the contracts or arrangements or transactions including the value, if any
Refer (b)
c) Date(s) of approval by the Board, if any 29th May, 2014, 4th March 2015, 27th January 2016,5th August 2016, 29th March 2017, 2nd November, 2017 , 16thMarch,2018and7th March 2019.
d) Amount paid as advances, if any: NIL(B) a) Name(s) of the related party and nature of
relationshipBihar Grid Company Limited(BGCL), Joint Venture Company
b) Nature of contracts / arrangements / transactions Consultancy for post-award Techno Managerial services forStrengtheningofTransmissionSysteminBihar-Phase-IV,(Part-II).
c) Duration of the contracts / arrangements / transactions
24monthsfromApril’18(Extendableautomaticallyincaseofdelaytillcompletion of the scope as per Agreement).
d) Salient terms of the contracts or arrangements or transactions including the value, if any
Providing post-award engineering, quality assurance & inspectionrelated services for the packages awarded by BGCL under strengthening ofTransmissionSysteminBihar-Phase-IV,(Part-II).Agreementsignedon 24thApr’18.Theestimatedcostoftheprojectis`1370.0 Cr. and servicecharges@2%oftheactualexecutedcostoftheproject.
e) Date(s) of approval by the Board, if any 16thMar’18(351stBoardmeetingofPOWERGRID)f) Amount paid as advances, if any: No amount was paid to BGCL as advance for this contract.
(C) a) Name(s) of the related party and nature of relationship
Bihar Grid Company Limited(BGCL), Joint Venture Company
b) Nature of contracts / arrangements / transactions Consultancy forPost-awardTechnoManagerialservices(Post-awardEngineering&QA&Ionly)forStrengtheningofTransmissionSysteminBihar-Phase-IV(Part-1).
135
c) Duration of the contracts / arrangements / transactions
24monthsfromMar’15(Extendableautomaticallyincaseofdelaytillcompletion of the scope as per Agreement).
d) Salient terms of the contracts or arrangements or transactions including the value, if any
Providing post-award engineering, quality assurance & inspectionrelated services for the packages awarded by BGCL under strengthening ofTransmissionSysteminBihar-Phase-IV,(Part-1).Agreementsignedon 1st Jan’15. The estimated cost of the project is `1700.0 Cr. and servicecharges@2%oftheactualexecutedcostoftheproject.
e) Date(s) of approval by the Board, if any 24thDec’14(308thBoardmeetingofPOWERGRID)f) Amount paid as advances, if any: No amount was paid to BGCL as advance for this contract.
(D) a) Name(s) of the related party and nature of relationship
Teestavalley Power Transmission Company Limited(TPTL), Joint Venture Company
b) Nature of contracts / arrangements / transactions Consultancyforexecutionof2nos.400kVAISbaysand2x63MVARReactors at Kishenganj POWERGRID S/S ( Subsequently, scoperevised to GIS from AIS )
c) Duration of the contracts / arrangements / transactions
26 months from Mar’10(Extendableautomaticallyincaseofdelaytillcompletionofthescopeas per Agreement)
d) Salient terms of the contracts or arrangements or transactions including the value, if any
Providing all services i.e procurement, engineering, implementation including testing and commissioning for 2 nos. 400 kV GIS bays and 2x63MVARreactorsatKishenganj.Agreementsignedon1st Sep’09 having estimated project cost of 26.78Cr.andconsultancyfee@15%oftheactualexecutedcostoftheproject.
e) Date(s) of approval by the Board, if any Not applicablef) Amount paid as advances, if any: No amount was paid to TPTL as advance for this contract.
E) a) Name(s) of the related party and nature of relationship
Teestavalley Power Transmission Company Limited(TPTL), Joint Venture Company
b) Nature of contracts / arrangements / transactions Consultancy for Engineering services for execution of 400 kVD/CTeestaIII-Kishenganjline(about211km)associatedwithTeesta-IIIHEP(1200MW)inSikkim.
c) Duration of the contracts / arrangements / transactions
Mutually agreed (Matching with commissioning of the transmission line)
d) Salient terms of the contracts or arrangements or transactions including the value, if any
Providing all services for finalization and appointment of agency/contractor byTPTL, pre-award andpost-award engineering, qualityassurance&inspectionrelatedservices(exceptissueofNIT,placementof award, payment towards project cost to contractors, supervision of erection, testing& commissioning) for execution of 400 kVD/CTeestaIII-Kishanganjline(about211km)associatedwithTeesta-IIIHEP(1200MW)inSikkim.Workorderdate21st Apr’09 and lumpsum consultancy fee is `16.0 Cr.
e) Date(s) of approval by the Board, if any Not applicablef) Amount paid as advances, if any: No amount was paid to TPTL as advance for this contract.
(F) a) Name(s) of the related party and nature of relationship
North East Transmission Company Limited(NETC), Joint Venture Company
b) Nature of contracts / arrangements / transactions Consultancy forOperation&Maintenanceof400KVD/CPallatana-SilcharByrnihat-Bongaigaonline(about661km).
c) Duration of the contracts / arrangements / transactions
3 years from June’16
d) Salient terms of the contracts or arrangements or transactions including the value, if any
Providing all services for Operation & Maintenance of 400 KV D/CPallatana-Silchar-Byrnihat-Bongaigaon line (about 661 km).Originalagreement signed on 16th Jan’13 and same is renewed on 30th May’2016.TheconsultancyfeeisasperCERCtariffnorms.
e) Date(s) of approval by the Board, if any Not applicablef) Amount paid as advances, if any: No amount was paid to NETC as advance for this contract.
(G) a) Name(s) of the related party and nature of relationship
National High Power Test Laboratory Pvt. Ltd. (NHPTL), Joint Venture Company
b) Nature of contracts / arrangements / transactions ConsultancyforestablishmentofOn-lineHighPowerShortCircuitTestFacility at Bina Substation
136
c) Duration of the contracts / arrangements / transactions
Mutually agreed
d) Salient terms of the contracts or arrangements or transactions including the value, if any
Providing all services i.e. procurement, engineering, implementation includingtestingandcommissioningforestablishmentofOn-lineHighPower Short Circuit Test Facility at Bina Substation. Agreement Signed on 25th Nov’10 having estimated project cost of `247.06 Cr. And Consultancyfee@10%oftheactualexecutedcostoftheproject.
e) Date(s) of approval by the Board, if any Not applicablef) Amount paid as advances, if any: No amount was paid to NHPTL as advance for this contract.
(H) a) Name(s) of the related party and nature of relationship
Power Transmission Company Nepal Ltd, JV Company
b) Nature of contracts / arrangements / transactions ToprovideProjectManagementConsultancyforexecutionof400kVD/CDhalkebarBittamod(42.1km)section(NepalPortion)of400kVD/CMuzaffarpur(India)-Dhalkebar(Nepal)TransmissionLine.
c) Duration of the contracts / arrangements / transactions
24monthsfrom13-Aug-2012(Extendedautomaticallyincaseofdelaytillcompletionofthescopeas per agreement)
d) Salient terms of the contracts or arrangements or transactions including the value, if any
Providing project management consultancy i.e. preparation of Master N/w design & Engineering, Preparation of technical specificationsincluding BOQ, NIT and cost estimate; preparation of technical &commercial bid documents, preparation of draft NIT, evaluation of bid draft LOA, post contract Engg. and project management activities andsupervisionofsitework,openingofsiteofficesandotherworkincidentaltoexecutionofwork.Value:Consultancyfeeshallbe10%ofthefinalactualexecutedcostoftheprojectplusapplicabletaxes/dutiesinIndia/Nepal.
e) Date(s) of approval by the Board 6-Jan-2010f) Amount paid as advances, if any : INR 0.53 Cr. received on 25-Jul-14. No amount paid as advances
thereafter.(I) a) Name(s) of the related party and nature of
relationshipCross-Border Power Transmission Company Ltd, JV Company
b) Nature of contracts / arrangements / transactions ToprovideProjectManagementConsultancyforexecutionof400kVD/CMuzaffarpur-Sursand(85.55km)section(IndiaPortion)of400kVD/CMuzaffarpur(India)-Dhalkebar(Nepal)TransmissionLine
c) Duration of the contracts / arrangements / transactions
30monthsfrom10-Aug-2012(Extendedautomaticallyincaseofdelaytillcompletionofthescopeas per agreement)
d) Salient terms of the contracts or arrangements or transactions including the value, if any
Providing project management consultancy i.e. preparation of Master N/w design & Engineering, Preparation of technical specificationsincluding BOQ, NIT and cost estimate; preparation of technical &commercial bid documents, preparation of draft NIT, evaluation of bid draft LOA, award of the Contract, post contract Engg. and project management activities and supervision of site work, opening of site officesandotherworkincidentaltoexecutionofworkValue:Consultancyfeeshallbe12%ofthefinalactualexecutedcostoftheprojectplusapplicabletaxes/dutiesinIndia/Nepal.
e) Date(s) of approval by the Board, if any 24-Aug-2009f) Amount paid as advances, if any: INR1.31Cr.receivedon19-Apr-2013.Noamountpaidasadvances
thereafter.
For and on behalf of the Board of Directors
(Ravi P.Singh) Director (Personnel) & CMD
DIN:05240974Place: New DelhiDate: 19th July, 2019
137
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26.0
717
54.7
515
50.0
92897.27
1519
.45
240.84
226.
336.
33
9.In
vest
men
tsNi
lNi
lNi
lNi
lNi
lNi
lNi
lNi
lNi
lNi
lNi
lNi
lNi
l
10.
Turn
over
15.85
Nil
295.
4423
.30
57.2
661
.05
280.44
282.97
33.0
1Ni
lNi
lNi
lNi
l
11.
Profitbefore
taxation
(89.68)
(0
.01)
139.
4414
.75
18.48
14.3
184.08
91.7
3(2
.12)
Nil
Nil
Nil
Nil
12.
Prov
ision
for
taxation
(26.
11)
Nil
39.2
94.
945.
404.
1624
.41
26.7
1(0
.56)
Nil
Nil
Nil
Nil
13.
Profitaftertaxation
(63.
57)
(0.0
1)10
0.15
9.81
13.08
10.1
559
.67
65.0
2(1
.56)
Nil
Nil
Nil
Nil
14.
Prop
osed
Div
iden
d
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
15.
%ofshareholding
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Nam
es o
f sub
sidi
arie
s w
hich
are
yet
to c
omm
ence
ope
ratio
ns
-PowergridVemagiriTransmissionLimited.
-
PowergridSouthernInterconnectorTransmissionSystemLimited(PartiallyCommissioned).
-
PowergridMedinipurJeeratTransmissionLimited.
-
PowergridMithilanchalTransmissionLimited.
-
PowergridVaranasiTransmissionSystemLimited.
-
PowergridJawaharpurFirozabadTransmissionLimited.
Nam
es o
f sub
sidi
arie
s w
hich
hav
e be
en li
quid
ated
or s
old
duri
ng th
e ye
ar
-Nil
(Am
ount
s in
₹ C
rore
)
Anne
xure
-X
138
Part
“B”
: Ass
ocia
tes
and
Join
t Ven
ture
sSt
atem
ent p
ursu
ant t
o Se
ctio
n 12
9 (3
) of
the
Com
pani
es A
ct, 2
013
rela
ted
to A
ssoc
iate
Com
pani
es a
nd J
oint
Ven
ture
s
Nam
e of
Ass
ocia
tes/
Join
t Ve
ntur
es
Pow
erlin
ksTr
ans-
mis
sion
Lim
ited
Torr
ent
Pow
er G
rid
Lim
ited
Jayp
eePo
wer
grid
Li
mite
d
Parb
ati
Kold
am
Tran
s-m
issi
on
Com
pany
Li
mite
d
Tees
tava
lley
Pow
er T
rans
-m
issi
on
Lim
ited
Nor
th E
ast
Tran
s-m
issi
on
Com
pany
Li
mite
d
Nat
iona
l H
igh
Pow
er T
est
Labo
rato
ry
Priv
ate
Lim
ited
Kalin
ga
Vidy
utPr
asar
an
Nig
am
Priv
ate
Lim
ited
Biha
r G
rid
Com
pany
Li
mite
d
Cros
s Bo
rder
Po
wer
Tr
ans-
mis
sion
Co
mpa
ny
Lim
ited
RIN
L Po
wer
grid
TL
T Pv
t Li
mite
d
Pow
er
Tran
s-m
issi
on
Com
pany
N
epal
Ltd
1. L
ates
t aud
ited
Bala
nce
Shee
t Dat
e31
.03.
2019
31.0
3.20
1931
.03.
2019
Unaudited
Unaudited
31.0
3.20
19Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
2. S
hare
s of
Ass
ocia
te/
Join
t Ven
ture
s he
ld b
y th
e co
mpa
ny o
n th
e ye
ar e
nd
Num
ber
2293
2000
023
4000
0078000000
7093
7620
1055
6000
010
6964
000
3040
0000
5000
171685600
1261
2473
4000
000
1170
000
Amou
nt o
f Inv
estm
ent i
n Associates/JointVenture
229.
3223
.40
78.00
70.9
410
5.56
106.
9630
.40
0.01
171.
6912
.62
4.00
6.50
ExtendofHolding%
49%
26%
26%
26%
28.23%
26%
20%
50%
50%
26%
50%
26%
3. D
escr
iptio
n of
how
ther
e is
sig
nific
ant i
nflue
nce
Shar
e ho
ldin
g is
mor
e th
an
20%
Shar
e ho
ldin
g is
mor
e th
an
20%
Shar
e ho
ldin
g is
mor
e th
an
20%
Shar
e ho
ldin
g is
mor
e th
an
20%
Shar
e ho
ldin
g is
mor
e th
an
20%
Shar
e ho
ldin
g is
mor
e th
an
20%
Shar
e ho
ldin
g is
mor
e th
an
20%
Shar
e ho
ldin
g is
mor
e th
an
20%
Shar
e ho
ldin
g is
mor
e th
an
20%
Shar
e ho
ldin
g is
mor
e th
an
20%
Shar
e ho
ldin
g is
mor
e th
an
20%
Shar
e ho
ldin
g is
mor
e th
an
20%
4. R
easo
n w
hy th
e as
soci
ate/
join
t ven
ture
is
not c
onso
lidat
edN.
AN.
AN.
AN.
AN.
AN.
AN.
AN.
AN.
AN.
AN.
A.N.
A
5. N
et w
orth
att
ribut
able
to
Shar
ehol
ding
as
per l
ates
t au
dite
d Ba
lanc
e Sh
eet
447.58
35.5
610
5.45
95.3
010
1.47
125.
7126.08
NIL
195.
9423
.03
3.97
10.4
6
6. P
rofit
/ L
oss
for
the
year
i. Co
nsid
ered
in C
onso
lidat
ion
55.1
24.
9716
.39
12.6
7(0
.34)
17.0
6(1
.75)
NIL
12.3
23.98
(0.0
2)2.
23
ii. N
ot C
onsid
ered
in
Cons
olid
atio
nN.
AN.
AN.
AN.
AN.
AN.
AN.
AN.
AN.
AN.
AN.
A.N.
A
Nam
es o
f ass
ocia
tes
or jo
int v
entu
res
whi
ch a
re y
et to
com
men
ce o
pera
tions
-
KalingaVidyutPrasaranNigamPrivateLimited
-
RINLPowergridTLTPvtLimited
Nam
es o
f ass
ocia
tes
or jo
int v
entu
res
whi
ch h
ave
been
liqu
idat
ed o
r sol
d du
ring
the
year
-Nil
(Am
ount
s in
₹ C
rore
)
Plac
e: N
ew D
elhi
Date
: 29
th M
ay, 2
019
Div
ya T
ando
nCo
mpa
ny S
ecre
tary
K.
Sre
ekan
tDi
rect
or (F
inan
ce)
Ravi
P S
ingh
Dire
ctor
(Per
sonn
el)
( CA
. S M
urth
y)Pa
rtner
M.N
o. 0
7229
0
( C
A. R
anga
raja
n Ra
ghav
an I
yeng
ar)
Partn
erM.No.041883
( CA
. Man
asw
y Ko
thar
i)
Partn
erM
.No.
064
601
( CA
. Gau
tam
Kum
ar B
agar
iya)
Partn
er M
.No.
425
104
For
S.K.
Mitt
al &
Co.
Char
tere
d Ac
coun
tant
sFi
rm R
egn
No. 0
0113
5N
For R
.G.N
.Pri
ce &
Co.
Char
tere
d Ac
coun
tant
sFirmRegnNo.002785S
For K
otha
ri &
Co.
Char
tere
d Ac
coun
tant
sFirmRegnNo.301178E
For P
arak
h &
Co.
Char
tere
d Ac
coun
tant
sFi
rm R
egn
No. 0
0147
5C
For a
nd o
n be
half
of th
e Bo
ard
of D
irec
tors
As p
er o
ur re
port
of e
ven
date
139
Annexure XI to the Directors’ Report
Annual Report on Corporate Social Responsibility
1. CSR Policy of the Company was approved by the Board of Directors in its 307thmeetingheldon11.11.2014andwasmodifiedinits323rd
meeting held on 30.11.2015. Major changes were incorporated in the Name of the Policy, inclusion of Vision and Mission Statements, defining local area and communication strategy. The Policy is available on Company’s website http://www.powergridindia.com/sites/default/files/CSR_Policy_2015_0.pdf.The main features of the Policy are:ThePolicyisnamedasPOWERGRID’sCorporateSocialResponsibilityandSustainabilityPolicy.VisionTobeaCorporatethatsetsalongtermstrategyforSocial&EconomicDevelopmentofcommunitiesthroughinitiativesinruraldevelopment,school education, healthcare, skill development and other areas of national importance and adhere to sustainable environmental practices.MissionTo align CSR and Sustainability Policy with the business policy so as to conduct business in a sustainable manner, adhering to the principlesofAvoidance,MinimizationandMitigationindealingwithenvironmental&socialissuesandtoundertakehighimpactcommunitydevelopmentprojectsofnational&localimportanceinconsultationwithstakeholders.Activities under CSRThe activities proposed to be undertaken under CSR shall include all the activities mentioned in Schedule VII of Section 135 (3) (a) of the Companies Act, 2013.The Corporation will give preference to the stakeholders who are directly impacted by its operation for CSR activities. Since such stakeholders aregenerallylocatedintheperipheryofthecommercialoperationsoftheCorporation,POWERGRIDwillaccordpriorityforCSRactivitiesin local areas and neighborhood areas of its operations.TheGeographical limitsofaDistrictwherePOWERGRIDhas itspresenceshallbeconsideredas“localarea” forCSR&Sactivities. Inaddition,POWERGRIDshall alsoundertakeCSRactivitiesoutside it. RatioofCSRspendsbetween localareasandoutsidewouldbeapproximately75:25.However,projects/activitiesexecutedunderdirectivesofGovernmentofIndiaorofforemostconcernofthenationaldevelopmentagendawillbeoutsidethepurviewofthisratio.TheCSR&SCommitteeisauthorizedtoapproveanyproject,irrespectiveofthe amount involved, which is beyond the above ratio.Priority will be given for CSR activities to the stakeholders directly impacted by operations of the Corporation.CSRProjectsorProgrammesoractivitiesundertakeninIndiashallonlyamounttoCSRexpenditure.Endeavourshallbemadetopromotesustainabledevelopmentthroughinitiativesbyconductingbusinessinamannerthatisbeneficialtoboth business and society.Mode of Execution of CSR activitiesCSR activities shall preferably be implemented in a project mode. Implementation of various activities will normally be done through placementofawardbytheCorporationasperWorks&ProcurementPolicyoftheCorporation.ServicesofvariousdepartmentsofCentral,State Governments, Panchayati Raj Institutions, etc. may also be availed for implementation of CSR activities on deposit work basis.CSRactivities/projects/programmes,mayalsobe takenup inassociationwitha registered trustora registeredsocietyoracompanyestablishedbytheCorporationor itsholdingorsubsidiaryorassociatecompany,submittedtofulfillingrequirements,asmentioned inCompanies Act.Communication StrategyThe electronic media shall be used for broader communication with the stakeholders. Display in website, emails, Annual CSR booklet, AnnualReport,etc.willbekeyinstrumentstodeciphertheCSRinitiativesofPOWERGRID.Funding of CSR activitiesTheCorporationwillberequiredtospendannuallyonCSR,twopercentoftheaveragenetprofitmadeduringlastthree immediatelyprecedingfinancialyears.
140
2. The composition of CSR&S Committee:1. ShriRaviP.Singh : Director(Personnel)&CMD, Chairman of the Committee2 Shri K. Sreekant : Director (Finance)3 Ms. Seema Gupta : Director (Operations)4 Shri Rajeev K. Chauhan : Director (Projects)5 Shri Ghanshyam Prasad : Director (Govt. representative)6 Shri Jagdish I. Patel : Director (Independent)7 Shri Tse Ten Dorji : Director (Independent)8 ShriSunilK.Sharma : Director(Independent)9 Ms.A.R.Mahalaxmi : Director(Independent)
3. Average Net Profit of the Company for last three financial years: `9336.05 crore4. Prescribed CSR expenditure (two per cent of the amount as in items 3 above.) CSR@2%averageofnetprofitforthelastthreeyearsforFY2018-19:` 186.72Crore5. Details of CSR spent during financial year: a. Totalamounttobespentforfinancialyear: `186.72Crore b. Amount unspent, if any. NIL c. Mannerinwhichtheamountspentduringfinancialyear. DetailsofamountspentduringtheyearisattachedatAnnexure-I.6. Thecompanyhasspentmorethantwopercentoftheaveragenetprofitofthelastthreefinancialareasoranypartthereof.7. It is to state that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the Company.
Sd/-(Chief Executive Officer or Managing
Director or Director)
Sd/-(Chairman CSR Committee)
Sd/-(Person specified under clause (d) of sub-
Section (1) of Section 380 of the Act)
141
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
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red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
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proj
ect o
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e du
ring
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mul
ativ
e ex
pend
iture
up
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port
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peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
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velo
pmen
t of N
agha
ria
Govt
. Hig
h Sc
hool
, Mal
da,
(Con
stn.
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lay
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nd,
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dary
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l, an
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ay
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ry)
Prom
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Loca
l Ar
eaMalda,W
est
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al14
4.36
57.87
75.7
013
3.57
Dire
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nstru
ctio
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n Pr
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h Pu
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rh35
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ajna
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ctio
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atK.B.Women'sCcollege,
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h
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otin
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4Constructionoffiveclass
room
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room
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Anne
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R fo
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142
S.N
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148.57
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Assa
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11Re
nova
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Prom
otin
g Ed
ucat
ion
Othe
rM
alap
uram
, Ke
rala
32.89
0.00
27.2
627
.26
LSDG
, Mal
lapu
ram
di
stric
t
18Co
nstru
ctio
n of
40
toile
ts
at v
ario
us G
ovt.
Scho
ols
in N
irjul
i, Di
stric
t Ita
naga
r, Ar
unac
hal P
rade
sh a
s a
part
of S
wac
hh B
hara
t Abh
iyan
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaIta
naga
r, Ar
unac
hal
Prad
esh
135.
570.
0027
.11
27.1
1DC
inta
naga
r
19Va
rious
Infra
stru
ctur
al
facil
ities
in G
ovt.
Scho
ol,
Agnanwari&Community
Cent
re in
Eas
t Cha
mpa
ran.
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaEa
st
Cham
para
n,
Biha
r
25.0
40.
0025
.04
25.0
4Di
rect
143
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
20Co
nstru
ctio
n of
Cla
ssro
oms
atZillaParishadSchoolsat
Shik
rapu
r and
Koy
al V
illage
s at
Shi
krap
ur (P
une)
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaPu
ne,
Mah
aras
htra
122.
2139
.50
22.7
462
.24
Dire
ct
21Pr
ovid
ing
110
nos.
of
projector-cum-Laptop
mac
hine
s to
Gov
t. Sc
hool
s in
Mad
hya
Prad
esh,
Ra
jast
han
and
Hary
ana
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaVa
rious
di
stric
ts, M
P, Ra
jast
han
and
Hary
ana
44.0
00.
0022
.00
22.0
0R.
K.M
issio
n
22Constructionof8no.
class
room
s at
Gov
t. hi
gh
Scho
ol, S
ingh
awal
a M
oga
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaM
oga,
Pun
jab
61.2
920.83
20.83
Dire
ct
23Ca
rryin
g ou
t dev
elop
men
t w
ork
at G
over
nmen
t Sen
ior
Seco
ndar
y Sc
hool
, Suk
hral
i, Gu
rgao
n
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaGu
rugr
am,
Hary
ana
20.7
20.
0019
.69
19.6
9Di
rect
24Co
nstru
ctio
n of
Lad
ies
Host
el a
t Agr
icultu
ral
UniversityThrissur,Kerala
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaTh
rissu
r, Ke
rala
445.
000.
0017
.00
17.0
0Ke
rala
Agr
icultu
re
University
25Co
nstru
ctio
n of
sch
ool
build
ing
at L
adan
ia,
Mad
huba
ni.
Prom
otin
g Ed
ucat
ion
Othe
rM
adhu
bani
, Bi
har
17.1
70.
0016
.70
16.7
0Di
rect
26ProvidingWi-FiHotspotsat
Railw
ay S
tatio
ns in
Mum
bai
Subu
rban
are
a
Prom
otin
g Ed
ucat
ion
Othe
rVa
rious
di
stric
ts,
Mah
aras
htra
3,05
3.00
6.60
15.7
922
.40
Dire
ct
27Su
pply
of 1
No.
Non
A.C
. Co
llege
Bus
for G
ovt.
Med
ical C
olle
ge, C
hand
rapu
r
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaCh
andr
apur
, M
ahar
asht
ra16
.45
0.00
16.4
616
.46
Dire
ct
28Co
nstru
ctio
n of
03
no.
addi
tiona
l cla
ssro
oms
and
one
hall
at P
rimar
y Sc
hool
, Se
hra
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaBe
tul,
Mad
hya
Prad
esh
69.9
644
.44
15.2
359
.67
Dire
ct
29Co
nstru
ctio
n of
Bou
ndar
y w
all f
or P
rimar
y Sc
hool
at
Bhen
dra
Villa
ge, R
aiga
rh
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaRa
igar
h,
Chha
tisga
rh28.93
0.00
12.2
912
.29
Dire
ct
30Co
nstru
ctio
n of
Din
ing
hall
withkitchenforMid-day
mea
l and
Con
stru
ctio
n of
sc
hool
mai
n ga
te a
t Rai
ganj
Go
vt. S
choo
l, Ch
hatra
pur,
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaNo
rth D
inaj
pur,
WestBengal
11.88
0.00
11.88
11.88
Dire
ct
144
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
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eAm
ount
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utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
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ious
ye
ars
Amou
nt
spen
t on
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proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
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pend
iture
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to th
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port
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od
Amou
nt s
pent
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irec
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gh
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emen
ting
Agen
cy (
Nam
e)
31Co
nstru
ctio
n of
Ope
n st
age
&GreenRoomnearEast
Kalia
juli
LP S
choo
l B.C
haria
li Di
stric
t
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaSo
nitp
ur,
Assa
m13
.72
0.00
10.87
10.87
Dire
ct
32Co
nstru
ctio
n of
RCC
road
an
d Bo
unda
ry w
all a
t Go
vern
men
t ITI
, Bar
ghi,
Jaba
lpur
Prom
otin
g Ed
ucat
ion
Othe
rJa
balp
ur,
Mad
hya
Prad
esh
63.7
40.
0010
.14
10.1
4Di
rect
33Co
nstru
ctio
n of
clss
s ro
oms
for p
rimar
y schoolsofarnivada&
Dant
a, C
onst
ruct
ion
of
stal
l at N
ari S
anra
ksha
n Ke
ndra
Ban
aska
ntha
and
Co
nstru
ctio
n of
Sha
de in
ke
ndriy
a vi
dyal
aya
Prom
otin
g Ed
ucat
ion
Othe
rBa
nask
anth
a,
Guja
rat
91.48
52.9
79.
5962
.56
Dire
ct
34Co
nstru
ctio
n of
Ass
am
Type
Cla
ssro
om (0
4 no
s)
at R
anga
para
Col
lege
, Ra
ngap
ura
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaSo
nitp
ur,
Assa
m65
.00
0.00
6.50
6.50
DC S
onitp
ur
35Co
nstru
ctio
n of
cla
ss ro
om,
boun
dary
wal
l in
Prim
ary
scho
ol, C
hilw
aga
vila
ge a
t Ba
raba
nki.
Prom
otin
g Ed
ucat
ion
Othe
rBa
raba
nki,
UttarPradesh
61.7
60.
006.18
6.18
Dire
ct
36Pr
ocur
emen
t of 1
00 n
os
Sew
ing
mac
hine
with
Tab
le
at P
arli
Prom
otin
g Ed
ucat
ion
Othe
rBe
ed,
Mah
aras
htra
0.90
-5.35
5.95
4.72
Dire
ct
37Supply&Intallationof
7.5KWSolarPlantatZP
Scho
ol, K
atol
Roa
d, N
agpu
r
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaNa
gpur
, M
ahar
asht
ra5.
170.
005.
045.
04Di
rect
38Co
nstru
ctio
n of
hal
l at
Govt
. Hig
h Sc
hool
, Jan
drah
(J
amm
u) a
t Kish
enpu
r.
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaJa
mm
u57
.50
39.7
34.38
44.1
1Di
rect
39Providingutilityitems&
book
s at
Dad
engg
re P
ublic
Library,WestGaroHills
Dist
rict
Prom
otin
g Ed
ucat
ion
Othe
rWestGarohills,
Meg
hala
ya4.
930.
003.
953.
95DCWestgarohills
40Pr
ovid
ing
06 n
os. C
ompu
ters
to
Gov
t. M
odel
Hig
her
Seco
ndar
y Sc
hool
, Sam
ba
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaSamba,J&K
2.74
0.00
2.62
2.62
Dire
ct
145
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
41Re
pairi
ng w
ork
of w
ash
room,toiletsatZilla
Paris
had
High
Sch
ool,
Kato
l ro
ad, D
ist. N
agpu
r
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaNa
gpur
, M
ahar
asht
ra3.38
-0.01
2.40
4.72
Dire
ct
42Pr
ovid
ing
furn
iture
item
s andrepair&whitewashing
of b
ound
ary
wal
l in
Govt
. Hi
gh S
choo
l, Su
khra
li,
Gurg
aon.
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaGu
rugr
am,
Hary
ana
16.0
610
.00
2.31
12.3
1Di
rect
43Co
nstru
ctio
n of
01
no.
Libraryroom&02no.
class
room
s in
ME
Scho
ol
Saru
path
ar, M
isa
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaHo
jai,
Assa
m19
.29
16.4
02.28
18.68
Dire
ct
44Co
nstru
ctio
n of
Bric
k BoundaryWall&Gateat
Balig
aon
Miri
L.P.
Sch
ool,
Balig
aon
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaSo
nitp
ur,
Assa
m18.12
0.00
1.81
1.81
DC S
onitp
ur
45Pr
ocur
emen
t of 4
0 no
s.
of s
choo
l ben
ch w
ith d
esk
atBadjiunaU.P.sSchool,
Kora
put
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaKo
rapu
t, Od
isha
1.65
0.00
1.73
1.73
Dire
ct
46Pr
ocur
emen
t of 4
0 no
s. o
f sc
hool
ben
ch w
ith D
esk
at
TatibedaUPschool,Koraput
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaKo
rapu
t, Od
isha
1.65
0.00
1.73
1.73
Dire
ct
47"S
uppl
y of
com
pute
r equipment&accessories
to G
ovt.
High
er S
econ
dary
. Sc
hool
, Tar
kela
, Ra
igar
h"
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaRa
igar
h,
Chha
tisga
rh1.
410.
001.
411.
41Di
rect
48ProvidigMaterial&
EquipmentsinRajkiyaMook
Badh
ir Sc
hool
, Pat
na.
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaPa
tna,
Bih
ar17
.56
0.00
1.39
1.39
Dire
ct
49RepairingofKitchen&
Dini
ng H
all o
f Boy
s Ho
stel
atGovtBDSDeaf&Dumb
Scho
ol in
Kah
ilipar
a
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaKa
mru
p, A
ssam
13.5
50.
001.
351.
35SocialWelfareDept
50Pr
ocur
emen
t of c
hair
for
E-classroomandtable
tenn
is se
t for
Ken
driya
Vi
dyal
aya
no.2
, Bal
angi
r
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaBa
lang
ir,
Odish
a2.
330.
001.
291.
29Di
rect
146
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
51Re
pair
and
reno
vatio
n of
Ba
ligao
n M
iri L
.P. S
choo
l, Ba
lgao
n
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaSo
nitp
ur,
Assa
m12.80
0.00
1.28
1.28
DC S
onitp
ur
52Pr
ovid
ing
90 n
o. o
f pr
ojec
tors
sys
tem
to S
tate
Go
vt. s
choo
ls of
Ajm
er,
Raja
stha
n
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaAj
mer
, Ra
jast
han
37.6
236
.19
1.25
37.4
4Ra
m K
rishn
a M
issio
n
53Procurementofequipments
for
Smar
t Cla
ss a
t Gov
t. Sc
hool
, Las
kar,
Harid
war
Dist.Uttarakhand
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaHa
ridw
ar,
Uttrakhand
17.9
317
.19
0.64
17.83
Dire
ct
54DistributingOldOffi
ce
Furn
iture
Dal
tong
anj
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaDa
ltong
anj,
Jhar
khan
d0.
530.
000.
530.
53Di
rect
55SupplyofBlanketinDeaf&
Dum
b Sc
hool
, Pat
na
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaPa
tna,
Bih
ar0.
490.
000.
490.
49Di
rect
56De
velo
pmen
t of
infra
stru
ture
, sup
ply
of fu
rnitu
re a
nd w
inte
r ac
cess
orie
s in
Gov
t. Gi
rls
High
Sch
ool,
Raip
ur, S
atw
ari
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaJammu,J&K
20.2
50.
640.
300.
94Di
rect
57Re
nova
tion
and
upgr
adat
ion
of D
istric
t Pub
lic L
ibra
ry,
Guru
gram
Prom
otin
g Ed
ucat
ion
Loca
l Ar
eaGu
rugr
am,
Hary
ana
75.0
20.
000.
000.
00Di
stric
t Adm
inist
ratio
n
58Su
pply
of f
urni
ture
to
scho
ols
at S
itarg
anj.
Prom
otin
g Ed
ucat
ion
Othe
rSitarganj,Uttar
Prad
esh
6.33
1.41
0.00
1.41
Dire
ct
59Es
cala
tors
at S
anta
cruz
Ra
ilway
Sta
tion,
And
heri
and
Mum
bai
Healthcare&
Sani
tatio
nOt
her
Mum
bai,
Mah
aras
htra
250.
0017
5.00
0.15
175.
15WesternRailway
60Cr
eatin
g Nu
clear
Med
icine
Th
eran
ostic
s fa
cility
for
PatientsUndergoing
Radi
oiso
tope
Tre
atm
ent a
t TMC/ACTRECforcancer
patie
nts
at T
ATA
mem
oria
l ho
spita
l, M
umba
i
Heal
thca
reOt
her
Mum
bai,
Mah
aras
htra
3,00
0.00
280.22
769.78
1,05
0.00
Tata
Mem
oria
l Hos
pita
l
61Co
nstru
ctio
n of
Vish
ram
Sa
dan
at In
dira
Gan
dhi
Inst
itute
of M
edica
l Sc
ienc
es, P
atna
.
Heal
thca
reLo
cal
Area
Patn
a, B
ihar
1,50
0.00
0.00
703.
1770
3.17
HSCC
147
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
62Co
nstru
ctio
n of
Vish
ram
SadaninKingGeorge's
MedicalUniversity(KGMU)
(Tra
uma
Cent
re),
Luck
now
ca
mpu
s.
Heal
thca
reLo
cal
Area
Lucknow,Uttar
Prad
esh
760.
6335
5.10
404.
9076
0.00
KGMU
63UpgradationofCommon
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cal
Area
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481.00
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125.
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ChiefMedical&Health
Officer,Manpur
64ConstructionofPOW
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r Cap
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pmen
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logy
at
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oroo
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398.26
198.80
102.
3130
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Dr.B
.Bor
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19.3
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79SupplyofoneUltrasound
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16.7
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4.72
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82ConstructionofWaitingHall
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115.81
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83Co
nstru
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5KGMU
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Area
Jodh
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0.00
13.1
713
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85SupplyofC-ArmIm
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gene
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.50
Dire
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86AdvanceLifeSupportfittings
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mbu
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ovid
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9.90
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87"EquipmentstoGovt.
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7.92
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7.92
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88Purchase&distributionof
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89Su
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4.94
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150
S.N
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R Pr
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4.93
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91Pr
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kana
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ater
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thca
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Area
Jaip
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0.20
83.37
1.82
85.19
Dire
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151
S.N
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100
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100.88
99.7
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Dire
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102
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achine,
furn
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dar
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bh B
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Dist
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h54
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dmn,
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na
103
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llage
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0.99
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Dire
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104
Dist
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0.97
0.97
Dire
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105
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Area
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bad,
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0.86
0.86
Dire
ct
106
EssentialHospitalequipment
for C
omm
unity
Hea
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re V
ella
nikk
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thca
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sur,
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0.78
Dire
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107
Cons
truct
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of
"POW
ERGRIDVishram
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n" in
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ahat
i MedicalCollege&Hospital,
Guw
ahat
i
Heal
thca
reLo
cal
Area
Guw
ahat
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sam
1,50
0.00
0.00
0.45
0.45
HSCC
108
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g 03
no.
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ovt.
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entre
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, Lohit&Cachar
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rict,
Arun
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h an
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sam
19.85
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0.32
0.32
Dire
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152
S.N
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109
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g on
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bula
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ealth
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ntre
, Kol
kata
.
Heal
thca
reLo
cal
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Kolkata,West
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al11
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6.02
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6.24
Dire
ct
110
Vish
ram
Sad
an a
t Da
rbha
naga
Med
ical C
olle
geHe
alth
care
Loca
l Ar
eaDa
rbha
nga,
Bi
har
1,50
0.00
0.00
0.04
0.04
HSCC
111
Prov
idin
g H
igh
end
ArtificialLimbstoPersons
with
Disa
bilit
ies
(Pw
Ds) i
n M
umba
i
Heal
thca
reOt
her
Mum
bai,
Mah
aras
htra
27.9
027
.90
0.00
27.9
0AL
IMCO
112
Prov
ided
var
ious
item
s to
Ci
vil h
ospi
tal M
oga
Heal
thca
reLo
cal
Area
Mog
a, P
unja
b4.
744.
160.
004.
16Di
rect
113
Prov
idin
g m
edica
l EquipmenttoSRNHospital
Alla
haba
d
Heal
thca
reLo
cal
Area
Alla
haba
d,
UttarPradesh
18.39
29.4
10.
0029
.41
Dire
ct
114
Supplyofequipments&
mat
eria
ls fo
r ins
talla
tion
of
01 n
o. o
verh
ead
tank
alo
ng
with
dee
p tu
be w
ell,
pum
p an
d la
ying
of d
istrib
utio
n ofpipelineuptoexisting
dist
ribut
ion
syst
em in
Gov
t. Di
stric
t hos
pita
l Kus
hina
gar
Heal
thca
reLo
cal
Area
Kush
inag
ar,
UttarPradesh
52.2
352
.23
0.00
52.2
3UPJalNigam
115
Cons
truct
ion
of h
ouse
hold
to
ilets
and
con
stru
ctio
n of
Na
mm
a pu
blic
toile
ts fo
r Op
en D
efec
atio
n Fr
ee (O
DF)
in V
aran
asi
(par
t fun
ding
) th
roug
h Va
rana
si Na
gar
Niga
m,
Heal
thca
reLo
cal
Area
Varanasi,Uttar
Prad
esh
764.
0019
1.00
0.00
191.
00Va
rana
si Na
gar N
igam
116
Providingfloodrelief
materialinflood
affectedareasofDistrict
Sidd
harth
naga
r
Heal
thca
reOt
her
Sidd
arth
naga
r, UttarPradesh
21.4
121
.41
0.00
21.4
1Di
rect
117
Cons
truct
ion
of C
omm
unity
He
ritag
e Ce
ntre
nea
r Bar
uni
Padi
a, J
ajpu
r, di
stric
t Jaj
pur
Art&Culture
Loca
l Ar
eaJa
jpur
, Odi
sha
402.
5523
5.00
120.
0035
5.00
Colle
ctor
ate
Jaip
ur
118
Cons
truct
ion
and
Reno
vatio
n of
Roa
d, D
rain
and
Flo
or a
t Ba
idya
nath
Dha
m,
Deog
har
Art&Culture
Loca
l Ar
eaDe
ogha
r, Jh
arkh
and
236.
950.
0052
.10
52.1
0M
unici
pal C
orpo
ratio
n,
Deog
har
153
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
119
Inclu
sive
grow
th o
f M
adhu
bani
Pai
ntin
g by
In
dian
Inst
itute
of C
orpo
rate
Affairs.(IICA)
Art&Culture
Loca
l Ar
eaM
adhu
bani
, Bi
har
66.6
746
.67
20.0
266
.69
IICA
120
Cont
ribut
ion
to T
aj M
ahot
sav
at A
gra
Art&Culture
Loca
l Ar
eaAgra,Uttar
Prad
esh
4.00
4.00
2.36
6.36
DM, A
gra
121
Prov
idin
g Cl
uste
r bas
ed R
O PlantswithMotherplant-
0.1MLDcapacity&Remote
disp
ensin
g un
its w
ith 5
KL
capa
city
with
car
d ba
sed
disp
ensa
tion
Drin
king
wat
erLo
cal
Area
Gunt
ur, A
.P.22
0.00
0.00
167.
0916
7.09
RWS&S
122
Impl
emen
tion
of w
ater
su
pply
sys
tem
in fo
ur
villagesofOrai/Madhogarh
tehs
il of
Jau
laun
Dist
rict
Drin
king
wat
erLo
cal
Area
Jaulaun,Uttar
Prad
esh
184.60
55.2
611
0.52
165.78
DM, J
aula
un
123
Inst
alla
tion
of 2
30 n
os. h
and
pum
ps a
t Fat
ehpu
r, Ag
ra
DrinkingWater
Loca
l ar
eaAgra,Uttar
Prad
esh
189.79
0.00
75.6
375
.63
UPJalNigam
124
Inst
alla
tion
of 5
0 no
s.
subm
ersib
le p
umps
at A
gra
DrinkingWater
Loca
l Ar
eaAgra,Uttar
Prad
esh
93.0
30.
0067.86
67.86
UPStateCorporation
&Infrastructure
Deve
lopm
ent
125
Installation&supplyof
100
nos.
han
d pu
mps
in
Azam
garh
DrinkingWater
Othe
rAz
amga
rh,
UttarPradesh
47.2
10.
0033
.05
33.0
5UPAgro
126
Installationof258nos.
subm
ersib
le p
umps
with
bo
ring
at L
uckn
ow
DrinkingWater
Loca
l Ar
eaLucknow,Uttar
Prad
esh
328.95
0.00
32.89
32.89
UPStateCorporation
&Infrastructure
Deve
lopm
ent
127
Supp
ly a
nd in
stal
latio
n of
284nos.HandPumpsin
Prat
apga
rh
DrinkingWater
Loca
l Ar
eaPr
atap
garh
, UttarPradesh
117.
7487.33
29.1
111
6.44
UPJalNigam
128
Cons
truct
ion
of 1
00 n
os.
hand
pum
ps a
t Far
ooka
bad
Dist
.
DrinkingWater
Loca
l Ar
eaAgra,Uttar
Prad
esh
46.0
70.
0024
.42
24.4
2UPAgro
129
Inst
alla
tion
of 9
3 no
s.
hand
pum
ps a
t Deo
ria.
DrinkingWater
Loca
l Ar
eaDeoria,Uttar
Prad
esh
33.2
716
.63
16.6
333
.26
UPJalNigam
130
Inst
alla
tion
of 6
7 No
. su
bmer
sible
pum
ps in
and
ar
ound
Agr
a.
DrinkingWater
Loca
l Ar
eaAgra,Uttar
Prad
esh
99.2
40.
0015.87
15.87
UPAgroIndustrial
Corp
orat
ion
Ltd.
154
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
131
Installationof98no.hand
pum
ps a
t Pra
tapg
arh
DrinkingWater
Loca
l Ar
eaPr
atap
garh
, UttarPradesh
44.1
028.66
15.4
344
.09
UPJalNigam
132
Inst
alla
tion
of 2
00 n
o. h
and
pum
ps a
t Jha
nsi
DrinkingWater
Loca
l ar
eaJhansi,Uttar
Prad
esh
140.
050.
0014
.00
14.0
0UPSIC
133
DrinkingWaterSupplyto
Vaka
palli
villa
ge
Drin
king
wat
erOt
her
Vaka
palli,
An
dhra
Pr
ades
h
55.9
50.
0011
.19
11.1
9RW
S&S
134
InstallationofWaterATMs
at 2
0 lo
catio
ns in
Nal
anda
Di
stric
t.
DrinkingWater
Loca
l Ar
eaNa
land
a, B
ihar
107.
550.
0010
.70
10.7
0Di
stric
t Adm
inist
ratio
n
135
Inst
alla
tion
of 1
95 n
os. h
and
pum
ps in
Sah
ajah
anpu
r DrinkingWater
Loca
l Ar
eaSa
haja
hanp
ur,
UttarPradesh
87.37
0.00
8.74
8.74
UPJalNigam
136
Inst
alla
tion
of 1
50 n
os. h
and
pum
ps in
Pilib
hit
DrinkingWater
Othe
rPilibhit,Uttar
Prad
esh
83.83
0.00
8.28
8.28
UPJalNigam
137
Watersupplyin7wards
of T
aga
Villa
ge, A
kalto
ra,
Janj
gir
DrinkingWater
Loca
l Ar
eaDu
rg,
Chha
tisga
rh49
.93
44.9
14.
994.
72Co
llect
or J
anjg
ir
138
ProvidingDrinkingWater
and
seat
ing
arra
ngem
ent f
or
the
visit
ing
gene
ral p
ubliic
at
Tum
kur,
Karn
atak
a
DrinkingWater
Loca
l Ar
eaTu
mku
r, Ka
rnat
aka
4.98
0.00
4.97
4.97
Dire
ct
139
Supplyofwaterfilter&
cool
er a
t Deo
ghar
. DrinkingWater
Loca
l Ar
eaDe
ogha
r, Jh
arkh
and
4.40
0.00
4.12
4.12
Dire
ct
140
Purchase&installationof
WaterTank,WaterCooler
&ROatTehsilCampusat
Wazirabad,Gurugram
DrinkingWater
Loca
l Ar
eaGu
rugr
am,
Hary
ana
1.36
0.00
1.35
1.35
Dire
ct
141
Drin
king
wat
er a
rrang
emen
t an
d dr
ip ir
rigat
ion
at
Bang
alor
e
Drin
king
wat
erLo
cal
Area
Bang
alor
e,
Karn
atak
a4.
970.
001.
261.
26Di
rect
142
Prov
idin
g po
rtabl
e w
ater
of
20
liter
s in
a c
an fo
r `2
.00
each
hou
seho
ld (b
y in
stal
ling
1000
LPH
cap
acity
R.OUnits)inRuralareas
unde
r the
ban
ner o
f “NT
R Su
jala
Pat
haka
m”
Drin
king
wat
erLo
cal
Area
Kada
pa,
Andh
ra
Prad
esh
50.0
049
.32
0.68
50.0
0RW
S&S
155
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
143
Supp
ly o
f Ful
ly S
tain
less
SteelWaterCooleratZilla
Paris
had
Scho
ol V
illage
: Kh
aniva
lli.
DrinkingWater
Othe
rPa
dghe
, M
ahar
asht
ra0.
340.
000.
344.
72Di
rect
144
Supp
ly a
nd in
stal
latio
n of
200
nos
. han
d pu
mps
in
villa
ge o
f Pho
olpu
r,
Alla
haba
d.
DrinkingWater
Loca
l Ar
eaAl
laha
bad,
UttarPradesh
82.60
82.60
0.00
82.60
UPJalNigam
145
Supply&installationof139
nos.
han
p pu
mps
in v
illage
s of
Bal
ram
pur D
ist.
DrinkingWater
Othe
rBa
lram
pur,
UttarPradesh
51.5
151
.51
0.00
51.5
1UPAgroIndustrial
Corp
orat
ion
Ltd.
146
Supply&installationofhand
pum
ps in
var
ious
villa
ges
of
chandauli&Varanasidistrict
DrinkingWater
Loca
l Ar
eaVaranasi,Uttar
Prad
esh
117.
9411
7.94
0.00
117.
94UPJalNigam
147
Supply&installationof100
nos
hand
pum
ps in
var
ious
vi
llage
s of
Man
ihar
Blo
ck o
f Gh
azip
ur.
DrinkingWater
Othe
rGhazipur,Uttar
Prad
esh
43.6
043
.60
0.00
43.6
0UPJalNigam
148
Inst
alla
tion
of 2
50 n
o.
Indiamarks-IIhandpumps
in th
e va
rious
villa
ges
of
Kush
inag
ar d
istric
t
DrinkingWater
Loca
l Ar
eaKu
shin
agar
, UttarPradesh
90.18
67.0
70.
0067
.07
UPJalNigam
149
Supply&Installationof200
no. h
and
pum
ps in
var
ious
vi
llage
s of
Akb
arpu
r, Ka
npur
DrinkingWater
Othe
rKanpur,Uttar
Prad
esh
117.
7693
.61
0.00
93.6
1UPJalNigam
150
Inst
alla
tion
of 6
7 no
. han
d pu
mps
at D
eoria
DrinkingWater
Loca
l Ar
eaDeoria,Uttar
Prad
esh
23.9
711.98
0.00
11.98
UPJalNigam
151
Supp
ly o
f tw
o no
. wat
er
cool
er a
t Kan
pur
DrinkingWater
Loca
l ar
eaKanpur,Uttar
Prad
esh
2.13
2.13
0.00
2.13
Dire
ct
152
Supplyofwaterfilter&
cool
er a
t Luc
know
DrinkingWater
Loca
l Ar
eaLucknow,Uttar
Prad
esh
0.72
0.72
0.00
0.72
Dire
ct
153
Supp
ly a
nd in
stal
latio
n of
800nos.SolarlightsatEtah
Environment&
Sust
aina
bilit
yOt
her
Etah,Uttar
Prad
esh
180.64
0.00
162.58
162.58
UPNEDA
154
Supply&Installationofsolar
highmastlights&solar
stre
et li
ghts
in S
ahar
anpu
r, Noorpur,Muzaffarnagarand
Sham
li (T
hana
bhaw
an)
Environment&
Sust
aina
bilit
yLo
cal
Area
Muzaffarnagar,
UttarPradesh
251.
5276
.36
152.
09228.44
EESL
156
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
155
Cond
uctin
g Pa
intin
g Competitionin8UTs/
Stat
es, N
atio
nal L
evel
Pa
intin
g co
mpe
titon
(Gro
up
B) fo
r pro
mot
ing
Ener
gy
Conservation-2018
Environment&
Sust
aina
bilit
yOt
her
Vario
us
dist
ricts
, Ra
jast
han,
Ch
attis
garh
, Go
a, A
ssam
, Da
rar,
Naga
r Ha
veili,
Guj
arat
an
d TN
179.
610.
0013
5.67
135.
67Di
rect
156
Inst
alla
tion
of 5
00 s
olar
lig
hts
at v
ario
us v
illage
s of
Lu
ckno
w
Environment&
Sust
aina
bilit
yLo
cal
Area
Lucknow,Uttar
Prad
esh
112.
960.
0010
3.92
103.
92EE
SL
157
Dist
ribut
ion
of P
olyc
otto
n ba
gs in
Jha
rkha
nd .
Environment&
Sust
aina
bilit
yLo
cal
Area
Ranc
hi,
Jhar
khan
d10
5.55
0.00
100.
6210
0.62
JHAR
CRAF
T, R
ANCH
I
158
Part
fund
ing
for c
onst
ruct
ion
of T
hem
e Pa
rk a
nd
Renovation&Restoration
of"CHO-DZOLAKE"at
Rava
ngla
, Nam
chi,
Sout
h Si
kkim
Environment&
Sust
aina
bilit
yOt
her
Nam
chi,
Sikk
im10
0.00
0.00
100.
0010
0.00
DC S
outh
Sik
kim
, Si
kkim
159
Supply&installationof
501
sola
r stre
et li
ghts
at
differentlocationsofNoida
Environment&
Sust
aina
bilit
yLo
cal
Area
Gaut
am B
udh
Nagar,Uttar
Prad
esh
112.
720.
0099.08
99.08
UPNEDA
160
Renovation/Constructionof
lake
s in
Aur
anga
bad
and
Roht
as D
istric
ts.
Environment&
Sust
aina
bilit
yLo
cal
Area
Aura
ngab
ad
and
Roht
as,
Biha
r
118.84
0.00
68.44
68.44
DIST
. ADM
N RO
HTAS
&AURANGABAD
161
Desil
ting
of tw
o no
. pon
ds
at V
illage
Riw
ara,
Mai
har
Environment&
Sust
aina
bilit
yLo
cal
Area
Satn
a , M
adhy
a Pr
ades
h85.43
0.00
65.4
765
.47
Dire
ct
162
Supply&Installationof300
nos.
LED
sol
ar p
hoto
volta
ic St
reet
Lig
htin
g in
var
ious
vi
llage
s of
Pal
i and
Jod
hpur
Di
stric
t
Environment&
Sust
aina
bilit
yOt
her
Pali
and
Jodh
pur,
Raja
stha
n
68.67
6.87
61.80
68.67
REIL
Jai
pur
163
Supply&Installationof
sola
r stre
et L
ED li
ghts
in
Ghaz
iaba
d
Environment&
Sust
aina
bilit
yLo
cal
Area
Ghaz
iaba
d,
UttarPradesh
56.1
60.
0053
.12
53.1
2UPSIC
164
Inst
alla
tion
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olar
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170
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57.2
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40.0
9RE
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172
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andUttrakhand
328.59
0.00
30.87
30.87
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173
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56.6
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50.9
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174
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175
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.14
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176
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177
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20.6
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158
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178
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olar
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179
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180
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158.63
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183
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8.07
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7.18
7.18
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CAP
184
Nalla
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ahar
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ra48.54
35.9
15.
7541
.66
Dire
ct
185
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24
Para
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186
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ujar
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0.00
4.60
4.60
Dire
ct
187
Nallah/WellDeepening&
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bilit
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her
Pune
, M
ahar
asht
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.23
6.17
4.06
10.2
3Di
rect
159
S.N
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R Pr
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188
WaterConservationby
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no.
of p
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760.
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963.
96Di
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189
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7.11
3.90
11.0
1Di
rect
190
Plan
tatio
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no.
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Area
Auraiya,Uttar
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2.88
0.00
2.43
2.43
Fore
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eptt.
191
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rect
192
Purc
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4 No
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bilit
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Area
Cham
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11.7
71.
7213
.49
Dire
ct
193
Orga
nisin
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duringMini-Marathonon
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last
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Environment&
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bilit
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Area
Khor
da, O
dish
a1.38
0.00
1.38
1.38
Dire
ct
194
CeleberationofWorld
Envi
ronm
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ayEnvironment&
Sust
aina
bilit
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cal
Area
Lucknow,Uttar
Prad
esh
0.38
0.00
0.38
0.38
Dire
ct
195
Inst
alla
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of S
olar
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t Gov
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enio
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cond
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Scho
ol, K
hatk
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and
Govt
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s M
odel
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ndar
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a
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aina
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cal
Area
Jind,
Har
yana
35.18
31.1
40.
1431.28
Dire
ct
196
Supp
ly a
nd in
stal
latio
ns
of 3
250
sola
r LED
stre
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light
s in
var
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dist
ricts
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Him
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, H.P
737.
1014
7.42
0.00
147.
42M/sEESL
160
S.N
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R Pr
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197
Supply&Installationofsolar
highmastlights&solar
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in S
ahar
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Sham
li (T
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198
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0.09
0.09
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199
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716.
65Di
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200
Supply&installationof2
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and
18.46
0.00
18.46
18.46
Dire
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201
Reno
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59Di
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202
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250.
005.
255.
25Di
rect
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Impl
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chem
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PDS)
wor
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Area
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esh
2,51
5.00
1,20
9.36
646.84
1,856.20
Dire
ct
204
Vario
us d
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1,10
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532.
2053
2.20
Dire
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205
Supply&Installationof800
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aj H
ar
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207.
4920
7.49
Dire
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206
Inte
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De
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901.
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176.
754.
72IC
RISA
T
161
S.N
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impl
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Agen
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207
Displayof800Hoardings
in th
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208
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h
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148.57
734.28
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209
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172.
100.
00142.89
142.89
Dire
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210
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ar70
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129.89
129.89
Dire
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211
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de S
tatio
n,
Alip
urdu
ar
Rura
l De
vele
opm
ent
Loca
l Ar
eaAl
ipur
duar
, W.B.
198.76
43.4
911
6.75
160.
24Di
rect
212
Cons
truct
ion
of
inte
rcon
nect
ing
road
and
in
tern
al ro
ad fo
r Das
tan
Gram
Pan
chay
at, P
alsa
na
Tehs
il
Rura
l De
vele
opm
ent
Loca
l Ar
eaSu
rat,
Guja
rat
149.
390.
0086.91
86.91
Dire
ct
213
Cons
truct
ion
wor
k of
(i)
Panc
haya
t Hal
l with
toile
t complex,boundarywallwith
entra
nce
gate
s (ii
) sol
ar
stre
et li
ghts
and
(iii)
hig
h m
ast l
ight
at v
illage
kuk
rola
ne
ar M
anes
ar
Rura
l De
vele
opm
ent
Loca
l Ar
eaGu
rugr
am,
Hary
ana
104.
6410
.46
83.71
94.1
7IR
CON
214
Com
mun
ity D
evel
opm
ent
worksaround+-800kv
HVDC
Ter
min
al, K
uruk
shet
ra
from
Pan
chay
ati R
aj
Depa
rtmen
t, Ka
rnal
Rura
l De
vele
opm
ent
Loca
l Ar
eaKu
rush
etra
, Ha
ryan
a159.88
0.00
79.9
479
.94
Panc
haya
tri R
aj
Depa
rtmen
t
162
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
215
Renovation&Strengthening
ofaround1km.existing
PMGS
Y Ka
ccha
Roa
d in
cludi
ng p
rovi
sion
of
Hum
e Pi
pe c
ulve
rts a
nd
shou
lder
pro
tect
ion
wor
k fro
m C
haita
nya
Kabi
raj
to C
hhat
Pak
kiha
ga n
ear
Earth
ele
ctro
de s
tatio
n at
M
atha
bhan
ga, A
lipur
duar
Rura
l De
vele
opm
ent
Loca
l Ar
eaAl
ipur
duar
, W.B.
69.0
72.
4567
.66
70.1
1Di
rect
216
Cons
truct
ion
of C
omm
unity
Ce
ntre
at K
ushi
naga
r Ru
ral
Deve
leop
men
tLo
cal
Area
Kush
inag
ar,
UttarPradesh
92.4
70.
0060
.11
60.1
1Ru
ral E
ngg.
Dep
tt.
217
Cons
truct
ion
of P
CC R
oad
with
dra
in a
t Nah
ra v
illage
in
Tet
aria
Blo
ack
in E
ast
Cham
para
n,
Rura
l De
vele
opm
ent
Othe
rEa
st
Cham
para
n,
Biha
r
109.78
0.00
58.34
58.34
Dire
ct
218
Cons
truct
ion
of v
illage
road
in
Kish
enga
nj
Rura
l De
vele
opm
ent
Loca
l Ar
eaKi
shen
ganj
, Bi
har
200.
1269
.46
52.0
912
1.55
Dist
rict A
dmin
istra
tion
219
WideningofRoadat
Bisw
anat
h Gh
at L
inkR
oad
Rura
l De
vele
opm
ent
Loca
l Ar
eaBi
swan
ath
Char
iali,
Ass
am49
.25
0.00
49.2
549
.25
Dire
ct
220
Cons
truct
ion
of R
CC
drai
nage
in P
rata
pgar
h Ru
ral
Deve
leop
men
tLo
cal
Area
Prat
apga
rh,
UttarPradesh
102.88
0.00
46.3
046
.30
PWD
221
Prov
idin
g an
d la
ying
of
Bitu
men
road
from
Bhi
wan
i vi
llage
to D
hana
Nar
san
Rura
l De
vele
opm
ent
Loca
l Ar
eaBh
iwan
i, Ha
ryan
a12
3.52
120.
0736
.95
157.
02Di
rect
222
Cons
truct
ion
of c
omm
unity
ce
ntre
, Bou
ndar
y w
all
and
open
pla
y gr
ound
for
unde
rpriv
ilege
d re
siden
ts
of G
ram
Pan
chay
at D
asta
n,
Tehs
il Pa
lsana
, Dist
. Sur
at
Rura
l De
vele
opm
ent
Loca
l Ar
eaSu
rat,
Guja
rat
31.82
7.25
27.2
534
.50
Dire
ct
223
Cons
truct
ion
of C
omm
unity
Ce
nter
at D
aund
wad
i Vi
llage
, Pun
e
Rura
l De
vele
opm
ent
Loca
l Ar
eaPu
ne,
Mah
aras
htra
25.6
00.
0025
.26
4.72
Dist
rict A
dmin
stra
tion,
Pu
ne
224
Cons
truct
ion
of P
anch
ayat
Gh
ars
in 0
6 No
. villa
ges
aroundAgra.(Ph-2)
Rura
l De
vele
opm
ent
Loca
l Ar
eaAgra,Uttar
Prad
esh
163.
9098.88
23.4
312
2.31
Rura
l Eng
g. D
eptt.
225
Cons
truct
ion
of C
C Ro
ad a
t vi
llage
Bhe
ndra
, Rai
garh
Rura
l De
vele
opm
ent
Loca
l Ar
eaRa
igar
h,
Chha
tisga
rh37.83
0.00
21.9
94.
72Di
rect
163
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
226
Sola
r Stre
et S
yste
m a
t Ja
ggap
eta
and
Irrip
aka
villa
ges
in E
ast G
odav
ari
Dist
.
Rura
l De
vele
opm
ent
Loca
l Ar
eaEa
st G
odav
ari,
Andh
ra
Prad
esh
20.83
0.00
20.83
20.83
NRED
CAP
227
Cons
truct
ion
of K
alya
n M
anda
p cu
m c
omm
unity
ce
ntre
at B
eher
enbe
sa
villa
ge o
f Juj
omur
a bl
ock
in
Sam
balp
ur d
istric
t
Rura
l De
vele
opm
ent
Loca
l Ar
eaSa
mba
lpur
, Od
isha
35.0
00.
0020
.69
20.6
9DRDASAMBALPUR
228
ChattGhat&Community
Cent
res
at D
arbh
a, D
hanb
adRu
ral
Deve
leop
men
tLo
cal
Area
Dhan
bad,
Jh
arkh
and
122.
330.
0020
.31
20.3
1Di
rect
229
Inst
alla
tion
of C
CTV
syst
em
in R
upna
raya
mpu
r are
a,
at S
alam
pur,
Asan
sol,
Burdwan,W
estBengal
Rura
l De
vele
opm
ent
Loca
l Ar
eaPa
schi
m
Bard
ham
an,
W.B.
22.5
50.
0020
.27
20.2
7Di
rect
230
"Rur
al d
evel
opm
ent w
orks
Gu
ntur
: 1.
Layi
ng o
f 21
Nos
of C
C Roads&Drains
2.
Layi
ng o
f 11
Nos
of C
C Roads&Drains
3.Communityhalls-04Nosin
villa
nges
of S
atte
napa
lli 4.ROPlants-10NOsin
Villa
ges
of S
atte
enap
alli
"
Rura
l De
vele
opm
ent
Loca
l Ar
eaGu
ntur
, A.P.
190.
0095
.00
20.0
011
5.00
PanchyatRaj&
RWS&S
231
Cons
truct
ion
of P
CC w
ork
at w
eekl
y m
arke
t of v
illage
Ta
rkel
a, R
aiga
rh
Rura
l De
vele
opm
ent
Loca
l Ar
eaRa
igar
h,
Chha
tisga
rh41
.45
0.00
15.78
4.72
Dire
ct
232
Repa
ir an
d re
deve
lopm
ent
of 9
30 m
app
roac
h ro
ad
connectedMalerkotla-
Ludh
iana
sta
te H
ighw
ay,
villa
ge D
ulm
a
Rura
l De
vele
opm
ent
Loca
l Ar
ea S
angr
ur,
Punj
ab19
.56
1.73
15.08
16.81
PWDMalerkotla
233
Cons
truct
ion
of w
eavi
ng
Cent
re fo
r Trib
al w
omen
, Re
nova
tion
of C
omm
unity
Ce
ntre
, Con
stru
ctio
n of
,m
arke
t she
d, C
onst
ruct
ion
of a
dditi
onal
cla
ssro
om a
nd
cons
truct
ion
of 5
toile
ts in
pu
blic
plac
e in
Bisw
anat
h Ch
aria
li
Rura
l De
vele
opm
ent
Loca
l Ar
eaSo
nitp
ur,
Assa
m48.26
0.00
14.84
14.84
DCBi
swan
ath
Char
iali
164
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
234
Communityhall/CCRoads/
Drainsetc.atAshapur&
Aral
iben
ch v
illage
s, R
aich
ur
Dist
rict
Rura
l De
vele
opm
ent
Loca
l Ar
eaRa
ichur
, Ka
rnat
aka
99.1
524
.79
13.5
338.32
KRID
L
235
Rura
l Dev
elop
men
t in
Su
nder
garh
Dist
rict O
dish
a (i)
Rep
airin
g of
dam
aged
ro
ad fr
om B
andh
apal
i Hig
h sc
hool
to K
enap
ali v
illage
, (ii
)PCC
road
in K
enap
ali
villa
ge, (
iii) P
rovi
sioni
ng o
f watercoolerwithpurifier,
onemusicaldrumset&
one
grill
gate
for K
anap
ali
Sew
asth
ram
sch
ool.
Rura
l De
vele
opm
ent
Loca
l Ar
eaSu
ndar
garh
, Od
isha
33.5
118.48
13.2
131
.69
SDPD
S
236
Repa
ir of
road
at A
ligar
h,
(PWD)
Rura
l De
vele
opm
ent
Othe
rAgra,Uttar
Prad
esh
129.
230.
0012
.92
12.9
2PWD
237
Constructionof8no.
Com
mun
ity C
entre
s at
Baghmara,Tundi&Poorvi
Bloc
k of
Dha
nbad
Dist
rict
Rura
l De
vele
opm
ent
Othe
rDh
anba
d,
Jhar
khan
d59.83
43.83
9.11
52.9
4Di
rect
238
(i) C
onst
ruct
ion
of
Com
mun
ity C
entre
(ii)
digg
ing
of P
ond
at J
amuj
hari
in K
ishor
enag
ar B
lock
Rura
l De
vele
opm
ent
Loca
l Ar
eaAn
gul,
Odish
a12
.70
6.00
6.70
12.7
0BD
O KI
SHOR
ENAG
AR
239
Cons
truct
ion
of C
omm
unity
Ce
ntre
at V
illage
Seh
raRu
ral
Deve
leop
men
tLo
cal
Area
Betu
l, M
adhy
a Pr
ades
h25
.00
13.7
56.
4720
.22
Rur
al E
ngin
eerin
g Se
rvise
s24
0Co
nstru
ctio
n of
4 n
os.
hous
es a
t Kus
hth
Ashr
am a
t Ja
gadh
ari n
ear A
bdul
lapu
r
Rura
l De
vele
opm
ent
Loca
l Ar
eaAb
hulla
pur,
Hary
aana
10.2
05.
455.
4510
.90
Dire
ct
241
Cons
truct
ion
of C
omm
unity
ce
ntre
nea
r MAD
A Ho
use
Topc
haich
i in
Dhan
bad.
Rura
l De
vele
opm
ent
Othe
rDh
anba
d,
Jhar
khan
d43
.64
36.88
5.39
42.2
7Di
rect
242
Cons
truct
ion
of 0
6 no
s.
of C
omm
unity
Hal
l, 01
no.Rahasbari,Digging/
Reno
vatio
n of
Pon
ds 0
4 no
s., C
onst
ruct
ion
of C
C Roadalongwithculvert&
drai
n an
d Co
nstru
ctio
n of
Ro
ad G
uard
wal
l 64
mts
. in
Atha
mal
ik B
lock
, Ban
arpa
l Bl
ock
and
Angu
l Blo
ck
Rura
l De
vele
opm
ent
Loca
l Ar
eaAn
gul,
Odish
a11
5.67
87.70
5.16
92.86
BDO
ATHA
MAL
LIK
, BANARPAL&ANGUL
165
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
243
Cons
truct
ion
of P
anch
ayat
Gh
ars
in 0
6 No
s. v
illage
s ar
ound
Agr
a.
Rura
l De
vele
opm
ent
Loca
l Ar
eaAgra,Uttar
Prad
esh
163.08
154.
934.08
159.
01Ru
ral E
ngg.
Dep
tt.
244
Purchaseof60/70watt
LED
Stre
et L
ight
Fitt
ings
fo
r ins
talla
tions
in n
earb
y villagesunderPolerhat-II
Gram
pan
chya
t (bh
anga
r Block-II)
Rura
l De
vele
opm
ent
Loca
l Ar
eaNo
rth 2
4 Pa
raga
nas,
WestBengal
3.83
0.00
3.83
3.83
Dire
ct
245
Cons
truct
ion
of 0
2 no
s Pa
char
i at D
OMA
tala
ab in
vi
llage
Kot
ra, R
aiga
rh
Rura
l De
vele
opm
ent
Loca
l Ar
eaRa
igar
h,
Chha
tisga
rh8.82
5.50
3.32
8.82
Dire
ct
246
Cons
truct
ion
of H
oste
l for
In
tegr
al D
evel
opm
ent o
f Ch
ildre
n of
und
erpr
ivile
dged
&poorfarmersat
Panc
hgao
n, N
agpu
r
Rura
l De
vele
opm
ent
Othe
rNa
gpur
, M
ahar
asht
ra48.00
43.2
03.
2946
.49
Nagp
ur Im
prov
emen
t Tr
ust
247
Cons
truct
ion
of c
omm
unity
ha
ll at
Yel
ahan
ka
Rura
l De
vele
opm
ent
Loca
l Ar
eaBa
ngal
ore,
Ka
rnat
aka
75.0
070
.07
3.25
4.72
Nirm
iti K
endr
a,
Bang
alor
e248
SupplyofAuto-refraction
mac
hine
at I
ndia
n Re
d Cr
oss
Socie
ty, T
hane
Rura
l De
vele
opm
ent
Loca
l Ar
eaTh
ane,
M
ahar
asht
ra8.87
0.00
2.97
4.72
Dire
ct
249
Purchaseof24/25Watt
LED
Stre
et L
ight
Fitt
ings
fo
r ins
talla
tions
in n
earb
y villagesunderPolerhat-II
Gram
pan
chya
t (bh
anga
r Block-II)
Rura
l De
vele
opm
ent
Loca
l Ar
eaNo
rth 2
4 Pa
raga
nas,
WestBengal
2.95
0.00
2.95
2.95
Dire
ct
250
FixationofHighLoad
capacityRUBBERRoad
BumpattheLauhati-Haroa
Road
Raj
arha
t
Rura
l De
vele
opm
ent
Loca
l Ar
eaNo
rth 2
4 Pa
raga
nas,
WestBengal
4.49
0.00
2.89
2.89
Dire
ct
251
Reno
vatio
n of
2 n
o. B
us
Stop
s at
Nar
i Rin
g Ro
ad,
Nagp
ur
Rura
l De
vele
opm
ent
Loca
l Ar
eaNa
gpur
, M
ahar
asht
ra3.
490.
002.85
4.72
Dire
ct
252
Cons
truct
ion
of c
ulve
rt at
M
ilanp
urRu
ral
Deve
leop
men
tLo
cal
Area
Kam
rup,
Ass
am5.
502.
752.
755.
50Di
rect
166
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
253
Com
preh
ensiv
e ac
tiviti
es in
Sitamarhi-SupplyofMini
High
Mas
t Lig
ht, M
otor
ized
Tr
icycle
, Com
mun
ity C
entre
at
Sita
mar
hi
Rura
l De
vele
opm
ent
Loca
l Ar
eaSi
tam
arhi
, Bi
har
194.
050.
002.
632.
63ALIMCO&UPSIC&
Dire
ct
254
Cons
truct
ion
of c
omm
unity
Ha
ll at
Aiza
wl
Rura
l De
vele
opm
ent
Loca
l Ar
eaAi
zaw
l, M
izora
m25.85
14.0
02.28
16.28
Dire
ct
255
1)Constructionoffive
no. c
omm
unity
hal
l (2)
Re
nova
tion
of 3
nos
. of
com
mun
ity c
entre
(3)
cons
truct
ion
of tw
o no
s. o
f ra
hasb
adi (
open
she
d) (
4)
cons
truct
ion
of 1
27 m
ts
cc ro
ad a
long
with
cul
vert
widening&drains(5)supply
of fu
rnitu
res
for p
hulp
ada
Panc
haya
t hig
h sc
hool
at
villa
ges
in B
anar
pala
bol
ck
and
angu
l bol
ck o
f Ang
ul
dist
rict.
Rura
l De
vele
opm
ent
Loca
l Ar
eaAn
gul,
Odish
a74
.26
64.0
41.87
65.9
1BDOBanarpal&Angul
256
Supp
ly o
f fur
nitu
re a
t De
osar
Rura
l De
vele
opm
ent
Othe
rDeosar,Uttar
Prad
esh
1.06
0.00
1.01
1.01
Dire
ct
257
RepairingofW
BMRoad
(Approx.2.8Km)atJakhi
villa
ge
Rura
l De
vele
opm
ent
Othe
rSa
tna,
Mad
hya
Prad
esh
0.99
0.00
0.89
0.89
Dire
ct
258
Com
mun
ity d
evel
opm
ent
wor
ks u
nder
gre
en e
nerg
y co
rrido
r , B
anas
kant
ha
Rura
l De
vele
opm
ent
Othe
rBa
nask
anth
a,
Guja
rat
0.38
0.00
0.38
0.38
Dire
ct
259
Construction&improvement
ofexisting3kms.kachha
road
to B
itum
enou
s ro
ad
Rura
l De
vele
opm
ent
Loca
l Ar
eaAl
ipur
duar
, W.B.
124.
2410
6.20
0.33
106.
53Di
rect
260
Crem
atio
n Sh
ed a
t Villa
ge
Dhar
ampu
ra, H
irapu
r Ba
ndha
Gra
m P
anch
ayat
, Ja
balp
ur
Rura
l De
vele
opm
ent
Loca
l Ar
eaJa
balp
ur,
Mad
hya
Prad
esh
0.07
0.00
0.07
0.07
Dire
ct
261
Cons
truct
ion
of C
omm
unity
Ha
ll at
Med
ikeri,
Ban
galo
reRu
ral
Deve
leop
men
tLo
cal
Area
Bang
alor
e,
Karn
atak
a50
.00
45.0
00.
0045
.00
Dist
rict A
dmin
istra
tion
262
Cons
truct
ion
of c
omm
unity
ce
nter
at v
illage
Kha
rta
(Jam
mu)
Rura
l De
vele
opm
ent
Loca
l Ar
eaJammu,J&K
31.9
727.68
0.00
27.68
Dire
ct
167
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
263
Cons
truct
ion
of C
C pa
ved
road
for i
nter
linki
ng ro
ad in
vi
llage
Dha
na N
arsa
n
Rura
l De
vele
opm
ent
Loca
l Ar
eaBh
iwan
i, Ha
ryan
a54
.49
30.1
40.
0030
.14
Dire
ct
264
Reno
vatio
n of
wai
ting
room
at
Sad
ar T
ehsil
are
a.
Rura
l De
vele
opm
ent
Loca
l Ar
eaLucknow,Uttar
Prad
esh
6.39
6.39
0.00
6.39
PublicWorks
Depa
rtmen
t26
5Pa
rticip
atio
n in
“Nam
ami
Gange”–anIntegrated
Cons
erva
tion
Miss
ion
for
Rive
r Gan
ga
Sani
tatio
nOt
her
Harid
war
, Uttrakhand
3,50
0.00
3,50
0.00
3,50
0.00
Clea
n Ga
nga
Fund
266
Cont
ribut
ion
to S
wac
hh
Bhar
at K
osh
Sani
tatio
nOt
her
Delh
i, De
lhi
1,50
0.00
1,50
0.00
1,50
0.00
Swac
hh B
hara
t Kos
h
267
Supp
ly a
nd in
stal
latio
ns o
f 13
000
twin
bin
s du
stbi
ns
Sani
tatio
nOt
her
Vario
us
dist
ricts
, H.P
575.
7111
5.14
575.
71690.85
EESL
268
Supp
ortin
g Sa
nita
tion
workersinUttarPradesh
Sani
tatio
nOt
her
Alla
haba
d,
UttarPradesh
250.
000.
0025
0.00
250.
00Ku
mbh
Mel
a Pr
adhi
kara
n Au
thor
ity26
9Su
pply,
inst
alla
tion
and
commissingof10000twin-
bin
dust
bins
with
Dou
ble
Swin
g st
and
at 9
2 ra
ilway
st
atio
ns o
f Ind
ian
Railw
ays
Sani
tatio
nOt
her
NorthWest
Railw
ay
442.85
0.00
216.
3721
6.37
EESL
270
Inst
alla
tion
of 1
00 n
os.
toile
ts a
t Gha
zipur
. Sa
nita
tion
Othe
rGhazipur,Uttar
Prad
esh
270.
000.
00178.93
178.93
Ircon
ISL
271
Inst
alla
tion
of 6
440
pair
of
dustbinsatW
esternCentral
Railw
ay s
tatio
ns in
the
areasofWesternRegion
Sani
tatio
nOt
her
Western
Cent
ral
Railw
ay,
Mad
hya
Prad
esh
285.10
0.00
163.
0716
3.07
EESL
272
UndertakingSolidLiquid
WasteManagement(SLWM)
and
asso
ciate
d pr
ojec
ts in
Ra
jarh
at
Sani
tatio
nLo
cal
Area
Sout
h 24
Parganas,W.B.
150.
000.
0015
0.00
150.
00Di
stric
t Adm
inist
ratio
n
273
Prov
idin
g Di
sast
er re
lief
materialstofloodvictimsin
the
Stat
e of
Ker
ala
Sani
tatio
nOt
her
Vario
us
Dist
ricts
, Ker
ala
200.
000.
0014
6.94
146.
94Go
vt. o
f Ker
ala
274
Cons
truct
ion
of T
oile
ts a
nd
wat
er a
rrang
emen
t in
26
Govt.schoolsinNoida,Uttar
Prad
esh
Sani
tatio
nLo
cal
Area
Gaut
am B
udh
Nagar,Uttar
Prad
esh
127.
590.
0010
6.57
106.
57Di
stric
t Bas
ic Ed
ucat
ion
OfficerG.BNagar
168
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
275
Over
head
and
Adm
inist
rativ
e expenses,Sanitationetc.
Othe
rsLo
cal
Area
Guru
gram
, Ha
ryan
a29
7.20
0.00
197.
2019
7.20
276
Cond
uctin
g Sw
achh
ta
Prog
ram
me
at B
aidy
anat
h Dh
am T
empl
e, D
eogh
ar
Sani
tatio
nLo
cal
Area
Deog
har,
Jhar
khan
d12
0.46
34.87
77.3
311
2.20
Dire
ct
277
Cons
truct
ion
of 4
sea
ted
toile
ts in
Nal
anda
Dist
rict.
Sani
tatio
nLo
cal
Area
Nala
nda,
Bih
ar94
.56
0.00
69.86
69.86
Dist
rict A
dmin
istra
tion
278
Cons
truct
ion
of 4
3 no
s.
toile
ts a
t Pra
tapg
arh
Sani
tatio
nLo
cal
Area
Prat
apga
rh,
UttarPradesh
132.
450.
0066
.23
66.2
3Irc
onIS
L
279
Cons
truct
ion
of D
rain
age
Syst
em in
Puh
ana
villa
ge,
Roor
kee
Sani
tatio
nLo
cal
Area
Roor
kee,
Uttrakhand
87.16
0.00
60.3
160
.31
UPRNNL
280
Prov
idin
g ga
rbag
e tip
pers
2
nos.
eac
h fo
r mun
icipa
litie
s of
Mod
i Nag
ar in
Dist
. Gh
azia
bad
and
Tatir
i, Am
inag
ar S
arai
Bag
pat a
nd
Bara
ut D
istric
t
Sani
tatio
nLo
cal
Area
Ghazibad&
Bagpat,Uttar
Prad
esh
46.3
10.
0042
.51
42.5
1Di
rect
281
Prov
idin
g on
e no
. tru
ck
mou
nted
sw
eepi
ng m
achi
ne
with
vac
uum
cle
aner
fo
r cle
anin
g of
road
s to
M
unici
pal C
orpo
ratio
n,
Farid
abad
Sani
tatio
nLo
cal
Area
Farid
abad
, Ha
ryan
a19
9.77
159.82
39.9
519
9.77
MCF
282
Obse
rvan
ce o
f Sw
achh
ta
Pakhwada2018w.e.f.15-31
May,2018;16-31August,
2018andSwachhtaHiSewa
from
16
Sept
embe
r to
2nd
October,2018
Sani
tatio
nLo
cal
Area
Vario
us
districts,W.B.
&Sikkim
480.00
0.00
473.58
473.58
Dire
ct
283
Cons
truct
ion
of T
oile
ts in
15
Nos
Gov
t. Sc
hool
s an
d 1
No
Govt
. Col
lege
in J
alpa
igur
i
Sani
tatio
nLo
cal
Area
Sout
h 2
4 Pr
agan
s,UttarDinajpur,
Alip
urdu
ar,
Jalpaiguri,W.B.
109.
990.
0035.98
35.98
Dire
ct
284
Constructionof08no.public
toiletsin08villagesinBasti
Dist
rict
Sani
tatio
nLo
cal
Area
Basti,Uttar
Prad
esh
61.2
119
.92
24.6
944
.61
UPRNSS
285
Cons
truct
ion
of to
ilets
at
Bus
stan
d, A
llaha
bad
Sani
tatio
nLo
cal
Area
Alla
haba
d,
UttarPradesh
60.7
70.
0024
.31
24.3
1UPSRTC
169
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
286
Cons
truct
ion
of to
ilets
in
thre
e Go
vern
men
t sch
ools
and
Reno
vatio
n of
sch
ools
build
ing
in M
anes
ar,
Guru
gram
Sani
tatio
nLo
cal
Area
Guru
gram
, Ha
ryan
a60
.40
36.2
424
.16
60.4
0Irc
on IS
L
287
Cond
uctin
g Sw
achh
ta
Prog
ram
m a
t Bai
dyan
ath
Dham
Tem
ple,
Deo
ghar
Sani
tatio
nLo
cal
Area
Deog
har,
Jhar
khan
d33
5.45
0.00
21.3
021
.30
Dire
ct
288
Deve
lopm
ent o
f Mah
atm
a GandhiUdhyaanPublic
park
and
sup
ply
of g
arba
ge
collectionvanforW
aghodia
villa
ge, V
adod
ara
Sani
tatio
nOt
her
Vado
dara
, Gu
jara
t48.25
20.2
721
.00
41.2
7Di
rect
289
Prog
ram
me
on S
wac
hh
BharatAbhiyanExpenses
Sani
tatio
nOt
her
vario
us
dist
ricts
, Ass
am20
.00
0.00
20.0
020
.00
Dire
ct
290
Vario
us d
evel
opm
enta
l wor
k in
Sou
th S
ikki
m D
istric
t Sa
nita
tion
Loca
l Ar
eaSo
uth
Sikk
im,
Sikk
im27.82
0.00
17.85
17.85
Dist
rict A
dmin
istra
tion
291
Inst
alla
tion
of 2
360
no. (
out
of8800nos.)ofdustbins
onWestCentralstations
ofIndianRailways.(78
stat
ions
)
Sani
tatio
nOt
her
vario
us R
ailw
ay
Stations,UP
and
MP
107.
610.
0017
.71
17.7
1EE
SL
292
Cons
truct
ion
of N
ama
Toile
ts (S
amas
tipur
Rai
lway
Di
visio
n)
Sani
tatio
nLo
cal
Area
Sam
astip
ur,
Biha
r10
6.79
42.5
315.48
58.01
Sam
astip
ur R
ailw
ay
Divi
sion.
293
Cons
truct
ion
of 0
3 No
s.
Toile
ts a
t Prim
ary
Scho
ol a
t Sagani,Parsada&Medesara
village(Distt.-Durg).
Sani
tatio
nOt
her
Durg
, Ch
hatis
garh
14.7
20.
0013
.66
4.72
Dire
ct
294
Hous
ekee
ping
wor
k at
su
rroun
ding
of S
hiva
ji pe
th,
Kolh
apur
Sani
tatio
nLo
cal
Area
Kolh
apur
, M
ahar
asht
ra33
.29
19.81
12.6
032
.41
Dire
ct
295
Supp
ly o
f mec
hani
zed
cleaningequipmentfor
Dist
rict H
ospi
tal,
Khor
dha,
Od
isha
Sani
tatio
nOt
her
Khor
da, O
dish
a11
.32
0.00
10.9
610
.96
Dire
ct
296
Prov
idin
g on
e In
dust
rial R
ide
on S
wee
per m
achi
ne fo
r Bh
awan
ipat
na M
unici
palit
y, Ka
laha
ndi D
istric
t, Od
isha
Sani
tatio
nLo
cal
Area
Kala
hand
i, Od
isha
9.49
0.00
8.74
8.74
Dire
ct
170
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
297
Supp
ly o
f fou
r mec
hani
zed
cleaningequipmenttoSainik
Scho
ol, B
huba
nesh
war
Sani
tatio
nLo
cal
Area
Khor
da, O
dish
a8.02
0.00
8.02
8.02
Dire
ct
298
Cons
truct
ion
of in
divi
dual
householdslatrines/toilets
for d
evel
opm
ent o
f prim
itive
tri
bal g
roup
in A
dila
bad
Dist
rict,
Tele
ngan
a
Sani
tatio
nLo
cal
Area
Adila
bad,
Te
leng
ana
81.20
0.00
7.79
7.79
Dist
rcict
Col
lect
orat
e
299
Cons
truct
ion
of :
(i) 0
1 NewBorewell;(ii)05Toilet
blocks;(iii)Urinalblockwith
24capacity;&Renovationof
(i)02borewells;(ii)08non
functionaltoiletsatZ.P.Govt
Girls
Hig
h sc
hool
, Goo
ty
Sani
tatio
nLo
cal
Area
Anan
thap
ur,
Andh
ra
Prad
esh
11.7
74.
007.
6511
.65
Panc
haya
t Raj
De
partm
ent
300
Cons
truct
ion
of T
oile
ts in
02
nos.
Gov
t. Sc
hool
s in
Sik
kim
Sa
nita
tion
Loca
l Ar
eaEast&South
Sikk
im, S
ikki
m32
.24
0.00
7.26
7.26
Dire
ct
301
Cons
truct
ion
of to
ilet
complexatAnugrahMagadh
Medicalcollege&Hospoital
Gaya
Sani
tatio
nLo
cal
Area
Gaya
, Bih
ar21
.94
0.00
6.49
6.49
Dire
ct
302
Awar
enes
s co
mpa
ign
of
Swac
hhta
Sar
veks
han
Abhi
yan
in P
atna
und
er
Swac
hh B
hara
t Miss
ion
initi
ative
thro
ugh
Radi
o Mirchi98.5FM
Sani
tatio
nLo
cal
Area
Patn
a, B
ihar
6.15
0.00
6.15
6.15
Dire
ct
303
Audi
t and
Impa
ct
Asse
ssm
ent o
f toi
lets
co
nstru
cted
und
er S
wac
hh
Vidy
alay
a Ab
hiya
n th
roug
h AF
C In
dia
Ltd.
Sani
tatio
nOt
her
Vario
us
dist
ricts
, Bi
har
55.28
0.00
5.53
5.53
AFC
Indi
a Lt
d.
304
Vehicleandequipmentto
Naga
r Nig
am, A
gra
Sani
tatio
nLo
cal
Area
Agra,Uttar
Prad
esh
79.6
90.
005.
255.
25Di
rect
305
Cons
truct
ion
of 6
nos
. toi
lets
at
Gov
t Sen
ior S
econ
dary
Sc
hool
Day
alpu
r nea
r KartarpurS/S
Sani
tatio
nLo
cal
Area
Jala
ndha
r, Pu
njab
9.26
0.00
5.06
5.06
Dire
ct
171
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
306
Procurement,installation&
com
miss
ioni
ng o
f Ora
gniic
re
cycle
r (au
tom
ated
org
anic
com
post
mac
hien
) at C
hand
i m
andi
r cut
tack
Sani
tatio
nLo
cal
Area
Cutta
ck,
Odish
a5.
000.
005.
005.
00Di
rect
307
Supp
ly o
f Bot
tle c
ursh
ign
mac
hine
at D
eogh
ar
Sani
tatio
nLo
cal
Area
Deog
har,
Jhar
khan
d5.
000.
005.
005.
00Di
rect
308
Inst
alla
tion
of S
anita
ry
Napk
in v
endi
ng m
achi
ne in
differentGovt.schools
Sani
tatio
nLo
cal
Area
Patn
a, B
ihar
5.00
0.00
4.75
4.75
Dire
ct
309
Inst
alla
tion
of 1
00 n
os. h
and
pum
ps a
t Pra
tapg
arh
Sani
tatio
nLo
cal
Area
Prat
apga
rh,
UttarPradesh
46.9
00.
004.
694.
69UPJalNigam
310
Supp
ly o
f pur
e dr
inki
ng
water,watercooler,dust-
binindifferentschoolsof
RourkelaSub-station.
Sani
tatio
nLo
cal
Area
Sund
arga
rh,
Odish
a4.84
0.00
3.82
3.82
Dire
ct
311
Cons
truct
ion
of 0
1 No
. Toi
let
at P
rimar
y Sc
hool
at P
otia
village(Distt.-Durg)under
CSR
Sani
tatio
nOt
her
Durg
, Ch
hatis
garh
5.04
0.00
3.23
3.23
Dire
ct
312
Cons
truct
ion
of C
rem
ator
ium
at
Villa
ge K
otra
, Rai
garh
(C
G)
Sani
tatio
nLo
cal
Area
Raig
arh,
Ch
hatis
garh
3.38
0.00
2.29
4.72
Dire
ct
313
Proc
urem
ent a
nd
disttributionof1000T-shirts
for p
ublic
aw
aren
ess
tow
ards
cle
anin
g of
Rive
r Ga
nga
thro
ugh
Spar
sh
Gang
a Ab
hiya
n
Sani
tatio
nLo
cal
Area
Guru
gram
, Ha
ryan
a2.
000.
001.68
1.68
Dire
ct
314
Inst
alla
tion
of d
ustb
in a
t Ho
wra
h Ra
ilway
Sta
tion
Sani
tatio
nLo
cal
Area
Howrah,W.B.
1.53
0.00
1.53
1.53
Dire
ct
315
Mai
nten
ance
of 4
0 no
. to
ilets
at B
allia
Sa
nita
tion
Loca
l Ar
eaBallia,Uttar
Prad
esh
3.01
0.00
1.50
1.50
Ircon
ISL
316
Cons
truct
ion
of 1
4 no
. to
ilets
in 9
Gov
t. Sc
hool
s at
Ba
ssi,
Jaip
ur
Sani
tatio
nLo
cal
Area
Jaip
ur,
Raja
stha
n57
.14
0.00
1.46
1.46
Dire
ct
317
Cons
truct
ion
of to
ilet
complexatKishenpurchowk
Khar
ta (J
amm
u)
Sani
tatio
nLo
cal
Area
Jammu,J&K
4.75
0.25
1.22
1.47
Dire
ct
172
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
318
Proc
urem
ent o
f Dus
tbin
s &WaterFiltersunderCSR
activ
ities
of O
dish
a Pr
ojec
ts.
Sani
tatio
nLo
cal
Area
Khor
da, O
dish
a1.
260.
001.08
1.08
Dire
ct
319
Prov
idin
g Tw
elve
nos
. ba
rrica
des
unde
r Sw
achh
Bh
arat
initi
ative
at L
ohit
Dist
rict,
Tezu
Sani
tatio
nLo
cal
Area
Lohi
t, Ar
unac
hal
Prad
esh
1.20
0.00
0.96
0.96
Supe
riten
dant
of
polic
e, L
ohit
dist
rict
320
Procourment&Distribution
of500T-shirtsfor
awar
enes
s of
Saw
achh
Bh
arat
.
Sani
tatio
nLo
cal
Area
Guru
gram
, Ha
ryan
a2.
000.
000.
950.
95Di
rect
321
Cons
truct
ion
of to
ilets
at
Fate
hapu
r Sa
nita
tion
Loca
l Ar
eaFa
teha
pur,
UttarPradesh
0.91
0.00
0.91
0.91
UPSRTC
322
Rest
orat
ion
of th
ree
(03)
Ponds-KotraVillage
Sani
tatio
nLo
cal
Area
Raig
arh,
Ch
hatis
garh
19.5
219
.03
0.49
19.5
2Di
rect
323
Cons
truct
ion
of to
ilet b
lock
s in19Govt.SchoolsofWest
Sikk
im d
istric
t
Sani
tatio
nLo
cal
Area
WestSikkim,
Sikk
im288.45
0.00
0.00
0.00
GVT
324
Cons
truct
ion
of 1
17 to
ilet
complexblock(430No.
Toile
t) in
116
sch
ools
in
Ghaz
ipur
Sani
tatio
nLo
cal
Area
Ghazipur,Uttar
Prad
esh
310.
5923
9.41
0.00
239.
41Irc
onIS
L
325
UndertakingLivelihood
Gene
ratin
g Sk
ill De
velo
pmen
t Pro
gram
me
in
villa
ges
Raja
rhat
Skill
Deve
lopm
ent
Loca
l Ar
eaSo
uth
24
Parganas,W.B.
150.
000.
0015
0.02
150.
02Di
stric
t Adm
inist
ratio
n
326
Skill
deve
lopm
ent
at IG
IAT,
Vi
zag
Skill
Deve
lopm
ent
Loca
l Ar
eaVi
shak
apat
na,
Andh
ra
Prad
esh
109.
040.
0010
9.04
109.
04IG
IAT
327
Skill
deve
lopm
ent p
rogr
am
by N
atio
nal A
cade
my
of
Cons
truct
ion
(NAC
)
Skill
Deve
lopm
ent
Loca
l Ar
eaHy
dera
bad,
Te
leng
ana
110.
550.
0082.91
82.91
NAC
328
Capa
city
Build
ing
Prog
ram
me
on P
ower
tra
nsm
issio
n lin
e To
wer
ErectionfortheFY2018-19
Skill
Deve
lopm
ent
Loca
l Ar
eaMalda&South
24 P
arga
nas,
W.B.
76.3
60.
0055
.24
55.2
4Di
rect
173
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
329
Impa
rting
Skil
l Dev
elop
men
t tra
inin
g to
500
0 yo
uths
in
33 lo
catio
ns a
cros
s In
dia
thro
ugh
NSDC
”
Skill
Deve
lopm
ent
Loca
l Ar
eaVa
rious
di
stric
ts ,
Biha
r, As
sam
, UP,Haryna
653.
00515.88
52.7
2568.60
NSDC
330
Capa
city
Build
ing
Trai
ning
Pr
ogra
m fo
r 03
mon
ths
w.e.f.01/08/2018to
31/10/2018
Skill
deve
lopm
ent
Loca
l Ar
eaNagaon/
Cach
ar, A
ssam
29.5
20.
0029
.52
29.5
2Di
rect
331
Providing100no.High-
Tech
Sew
ing
Mac
hine
s and05nos.Semi-
Auto
mat
ic Sa
nita
ry N
apki
n M
anuf
actu
ring
mac
hine
s at
Di
stric
t Dam
oh
Skill
Deve
lopm
ent
Loca
l Ar
eaDa
moh
, M
adhy
a Pr
ades
h
53.89
0.00
17.3
017
.30
Dire
ct
332
Capa
city
Build
ing
Prog
ram
me
on P
ower
Tr
ansm
issio
n Li
ne T
ower
Er
ectio
n
Skill
Deve
lopm
ent
Loca
l Ar
eaM
alda
, Sou
th
24Parganas&
Jalpaiguri,W.B.
150.
09108.12
14.68
122.80
Dire
ct
333
Skill
deve
lopm
ent o
f loc
al
yout
h in
Dist
. Lah
aul S
piti
thro
ugh
infra
stru
ctur
e additions&capacity
buildinginthefiledof
mountaineering&allied
activ
ities
Skill
Deve
lopm
ent
Loca
l Ar
eaLa
haul
spi
ti,
J&K
33.2
516
.63
13.3
029
.93
Dist
rict A
dmin
istra
tion
334
Skill
Deve
lopm
ent P
rogr
am
for86youthsprimariily
from
und
er p
rivile
ged
yout
h of
land
ous
tee
villa
ges
of
Indo
re
Skill
Deve
lopm
ent
Loca
l Ar
eaIn
dore
, M
adhy
a Pr
ades
h
107.
0196
.17
10.5
710
6.74
Indo-GermanTool
Room
, Ind
ore
335
Skill
Deve
lopm
ent T
rain
ing
on A
ppar
el m
akin
g fo
r trib
al
under-privilegedyouths
in M
okha
da a
nd J
awah
ar
Talu
ka, P
algh
ar d
istric
t
Skill
Deve
lopm
ent
Othe
rPa
lgha
r, M
ahar
asht
ra50
.00
39.85
8.68
48.53
MSS
DS
336
Procurementof38sewing
machinesalongwithsix
mon
ths
train
ing
at v
illage
M
anga
on, n
ear K
otes
hwar
Po
olin
g st
atio
n
Skill
Deve
lopm
ent
Loca
l Ar
eaKo
tesh
war
, Uttrakhand
7.35
0.00
5.17
5.17
Dire
ct
174
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
337
Prov
idin
g se
win
g m
achi
nes
alongwithequipment&
furn
iture
and
pro
vidi
ng
skill
deve
lopm
ent t
rain
ing
at S
ewin
g ce
ntre
, Kha
npur
vi
llage
, Alw
ar
Skill
Deve
lopm
ent
Loca
l Ar
eaAl
war
, Ra
jast
han
5.44
0.00
3.58
3.58
Dire
ct
338
Prov
idin
g se
win
g m
achi
nes
alon
g w
ith tr
aini
ng fo
r poo
r sectionsofdomesticladies/
girls
at v
illage
Poh
ru.
Skill
Deve
lopm
ent
Othe
rBudgam,J&K
5.13
1.14
3.52
4.66
Dire
ct
339
Five
mon
ths
lear
ning
cla
sses
in
tailo
ring
for u
npriv
ilege
d girls/womenatSector-43,
Guru
gram
Skill
Deve
lopm
ent
Loca
l Ar
eaGu
rugr
am,
Hary
ana
4.32
0.00
2.89
2.89
Dire
ct
340
Dist
ribut
ion
of 2
0 Se
win
g Machines&imparting6
mon
ths
train
ing
Prog
ram
at
Gove
rnm
ent S
r. Se
cond
ary
Scho
ol K
adip
ur, G
urug
ram
Skill
Deve
lopm
ent
Loca
l Ar
eaGu
rugr
am,
Hary
ana
6.95
0.00
0.91
0.91
Dire
ct
341
Workshopfortrainingto
Govt.officersfromdifferent
orga
nisa
tions
Skill
Deve
lopm
ent
Othe
rGu
rugr
am,
Hary
ana
0.46
0.00
0.46
0.46
Dire
ct
342
Providing38nos.sewing
mac
hine
s al
ongw
ith 0
6 m
onth
s tra
inin
g pr
ogra
m
in ta
ilorin
g fo
r girl
s an
d w
omen
of g
ram
pan
chay
at
man
gaon
, Kot
eshw
ar
Skill
Deve
lopm
ent
Loca
l Ar
eaKo
tesh
war
, Uttrakhand
6.55
5.11
0.39
5.50
Dire
ct
343
Prov
ided
veh
icle
to D
C Le
h,
for u
se b
y Lo
oms
of L
adak
h Sk
ill De
velo
pmen
tLo
cal
Area
Leh,J&K
7.90
7.90
0.00
7.90
Dire
ct
344
SupplyofTV&Clothinold
age
hom
e, S
ahar
a, P
atna
SocialWelfare
Loca
l Ar
eaPa
tna,
Bih
ar0.
910.
000.78
0.78
Dire
ct
345
Reno
vatio
n of
Sta
tium
in
Supa
ul
Spor
tsLo
cal
Area
Supa
ul, B
ihar
50.0
024
.27
25.7
350
.00
Dist
rict A
dmin
istra
tion,
Su
paul
346
Cons
truct
ion
of S
tadi
um
at V
illage
Bar
ikhu
rd
Babu
pur,T
ehsil
Rag
hura
j Na
gar
Spor
tsOt
her
Satn
a , M
adhy
a Pr
ades
h129.89
0.00
12.9
912
.99
RES
Satn
a
175
S.N
o.CS
R Pr
ojec
ts o
r act
ivity
id
entifi
edSe
ctor
in
whi
ch th
e pr
ojec
t is
cove
red
Loca
l Ar
ea
or
othe
r
Dis
tric
t,
Stat
eAm
ount
O
utla
yAm
ount
sp
ent o
n th
e pr
ojec
t du
ring
the
prev
ious
ye
ars
Amou
nt
spen
t on
the
proj
ect o
r pr
ogra
mm
e du
ring
20
18-1
9
Cum
mul
ativ
e ex
pend
iture
up
to th
e re
port
ing
peri
od
Amou
nt s
pent
: D
irec
t or t
hrou
gh
impl
emen
ting
Agen
cy (
Nam
e)
347
Deve
lopm
ent o
f Gre
en
Spac
e an
d Pl
ay G
roun
d fo
r pro
mot
ion
of s
ports
at
Indi
an In
stitu
te o
f For
est
Man
gem
ent (
IIFM
), Bh
opal
.
Spor
tsLo
cal
Area
Bhop
al,
Mad
hya
Prad
esh
29.6
118.48
7.25
25.7
3Di
rect
348
Sports/Arts/Culture
Expenses-CSRactivities
Spor
tsLo
cal
Area
Guru
gram
, Ha
ryan
a7.
100.
007.
107.
10Di
rect
349
Prov
idin
g Ra
cing
Cycle
to
Spe
cial C
hild
for
parti
cipat
ion
in S
pecia
l Ol
ympi
c 20
19
Spor
tsLo
cal
Area
North
24
Parganas,W.B.
0.30
0.00
0.21
0.21
Dire
ct
350
Esta
blish
men
t of 2
nos
. sy
nthe
tic s
urfa
ce te
nnis
cour
ts a
t Vizz
y sp
orts
complex,Viziaanagaram,
(AP)
Spor
tsLo
cal
Area
Vish
akap
atna
, An
dhra
Pr
ades
h
30.0
028.52
0.00
28.52
Dist
rict S
ports
Au
thor
ity
351
Cont
ribut
ion
to N
atio
nal
Spor
ts D
evel
opem
nt F
und
(NSD
F), G
ovt.
of In
dia,
for
spor
ts a
ctiv
ities
and
spo
rts
infra
stru
ctur
e up
grad
atio
n,
facil
itatin
g tra
inin
g to
pr
omot
e sp
orts
in J
aipu
r Ru
ral A
reas
Spor
ts
Loca
l Ar
eaJa
ipur
, Ra
jast
han
200.
000.
0020
0.00
200.
00Di
rect
5316
7.02
19551.28
176
ASSETS Non-current assets Property,PlantandEquipment 4 162266.88 152243.89 134252.57 Capitalwork-in-progress 5 33364.02 30261.17 35806.80 Investment Property 6 0.03 0.03 0.03 Other Intangible assets 7 1593.10 1366.46 1255.39 Intangibleassetsunderdevelopment 8 214.06 45.95 77.33 Financial Assets Investments 9 2756.53 1608.24 1327.55 Loans 10 10708.99 8253.12 3618.41 Othernon-currentfinancialassets 11 4548.37 866.35 836.95 Othernon-currentassets 12 5065.44 5645.51 6346.78 220517.42 200290.72 183521.81 Current assets Inventories 13 1226.28 1038.45 906.95 Financial Assets Investments - - 2.50 Trade receivables 14 4628.74 3638.96 3221.10 Cashandcashequivalents 15 3643.14 1516.21 3228.43 BankbalancesotherthanCashandcashequivalents 16 688.90 654.22 112.16 Loans 17 416.87 46.88 35.14 Othercurrentfinancialassets 18 6853.20 4869.92 3319.03 Other current assets 19 415.18 535.56 224.74 17872.31 12300.20 11050.05 Regulatory Deferral Account Balances 20 8083.27 11304.22 7975.80Total Assets 246473.00 223895.14 202547.66EQUITY AND LIABILITIES Equity EquitySharecapital 21 5231.59 5231.59 5231.59 OtherEquity 22 53785.55 49183.37 44575.66 59017.14 54414.96 49807.25 Liabilities Non-current liabilities Financial Liabilities Borrowings 23 131039.51 122420.32 110963.17 Othernon-currentfinancialliabilities 24 3897.44 459.60 352.24 Provisions 25 368.15 716.87 789.56 Deferredtaxliabilities(Net) 26 10093.02 13558.89 10418.74 Othernon-currentliabilities 27 486.57 457.16 575.20 145884.69 137612.84 123098.91 Current liabilities Financial Liabilities Borrowings 28 4300.00 1000.00 1500.00 Trade payables (A) total outstanding dues of micro enterprises and small enterprises 29 33.27 2.33 - (B) total outstanding dues of creditors other than micro enterprise 29 330.84 238.01 413.98
and small enterprises Othercurrentfinancialliabilities 30 22886.18 21505.61 19324.61 Other current liabilities 31 3863.26 2687.33 2566.00 Provisions 32 700.59 1059.58 537.21 CurrentTaxLiabilities(Net) 33 - 407.07 417.33 32114.14 26899.93 24759.13 Deferred Revenue 34 9457.03 4967.41 4882.37Total Equity and Liabilities 246473.00 223895.14 202547.66
* Restated (Refer Note 54)
Balance Sheet as at 31st March, 2019 (` in Crore)Particulars Note No. As at 31st
March, 2019As at 31st
March,2018*As at 1st
April, 2017*
Place: New DelhiDate: 29th May, 2019
Divya TandonCompany Secretary
K. SreekantDirector (Finance)
Ravi P SinghDirector (Personnel)
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari)Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
For and on behalf of the Board of Directors
As per our report of even date
Theaccompanyingnotes(1to68)formanintegralpartoffinancialstatements
177
Revenue From Operations 35 34119.12 29764.59Other Income 36 1498.95 1001.73Total Income 35618.07 30766.32EXPENSES Employeebenefitsexpense 37 1783.57 1599.09Financecosts 38 9091.42 7590.66Depreciationandamortizationexpense 39 10200.67 9091.25Otherexpenses 40 3053.43 2215.70Total expenses 24129.09 20496.70Profit Before Tax & Regulatory Deferral Account Balances 11488.98 10269.62Taxexpense: Currenttax-CurrentYear 2489.43 2153.67-EarlierYears - 15.34Deferredtax 26 (3465.87) 3140.15
(976.44) 5309.16Profit for the period before Regulatory Deferral Account Balances 12465.42 4960.46NetmovementinRegulatoryDeferralAccountBalances- 41 Income/(Expenses)(netoftax) (2526.87) 3284.19Profit for the period 9938.55 8244.65Other Comprehensive Income Itemsthatwillnotbereclassifiedtoprofitorloss(netoftax) 42 (16.30) 8.03Total Comprehensive Income for the period 9922.25 8252.68EarningsperequityshareincludingmovementinRegulatory Deferral Account Balances (Par value `10/-each): Basic&Diluted(`) 63 19.00 15.76EarningsperequityshareexcludingmovementinRegulatory Deferral Account Balances (Par value `10/-each): Basic&Diluted(`) 63 23.83 9.48 *Restated (Refer Note 54) Theaccompanyingnotes(1to68)formanintegralpartoffinancialstatements
Statement of Profit and Loss for the year ended 31st March, 2019(` in Crore)
Particulars Note No. For the year ended 31st March, 2019
For the year ended 31stMarch,2018*
Place: New DelhiDate: 29th May, 2019
Divya TandonCompany Secretary
K. SreekantDirector (Finance)
Ravi P SinghDirector (Personnel)
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari)Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
For and on behalf of the Board of Directors
As per our report of even date
Standalone Financial Statements
178
STAT
EMEN
T O
F CH
ANG
ES I
N E
QU
ITY
for t
he p
erio
d en
ded
31st
Mar
ch, 2
019
As a
t 1st A
pril,
201
852
31.5
9Ch
ange
s du
ring
the
year
-As
at 3
1st M
arch
, 201
952
31.5
9As
at 1
st A
pril,
201
752
31.5
9Ch
ange
s du
ring
the
year
-As
at 3
1st M
arch
, 201
852
31.5
9
Part
icul
ars
Rese
rves
and
Sur
plus
Oth
er C
ompr
ehen
sive
In
com
e
Tota
lSe
curi
ties
Prem
ium
Bond
Re
dem
ptio
n Re
serv
e
Self
Insu
ranc
e Re
serv
e
CSR
Rese
rve
Gen
eral
Re
serv
eRe
tain
ed
Earn
ings
Fair
Val
ue th
roug
h O
ther
Com
preh
ensi
ve
Inco
me
Equi
ty
Inve
stm
ent
Bala
nce
at 1
st A
pril,
201
895
78.2
9 91
58.5
9 73
5.03
12
3.33
26
911.
55
2585
.74
90.8
4 49
183.
37
Profitfortheyear
9938.55
9938.55
Othe
r Com
preh
ensiv
e In
com
e(2
.15)
(14.
15)
(16.
30)
Tota
l Com
preh
ensi
ve I
ncom
e 99
36.4
0 (1
4.15
)99
22.2
5 Ad
just
men
ts d
urin
g th
e ye
ar-
Tran
sfer
to G
ener
al R
eser
ve42
50.0
0(4
250.
00)
-Tr
ansf
er to
Bon
d re
dem
ptio
n re
serv
e20
29.2
0 (2
029.
20)
-Tr
ansf
er
from
Bo
nd
Rede
mpt
ion
Rese
rve
(130
2.99
)13
02.9
9 -
Tran
sfer
to S
elf I
nsur
ance
Res
erve
249.
07
(249
.07)
-Tr
ansf
er fr
om S
elf I
nsur
ance
Res
erve
(101
.92)
101.
92
--
Tran
sfer
from
CSR
Res
erve
(8.79)
8.79
--
FinalDividendF.Y.2017-18
(1464.85)
(1464.85)
TaxonFinalDividendF.Y.2017-18
(296
.92)
(296
.92)
InterimDividendF.Y.2018-19
(305
0.02
)(3
050.
02)
TaxonInterimdividendF.Y.2018-19
(612
.65)
(612
.65)
Othe
r Cha
nges
(Ind
AS
115
impa
ct)
104.
37
104.
37
Bala
nce
at 3
1st M
arch
, 201
995
78.2
9 98
84.8
0 88
2.18
11
4.54
31
376.
63
1872
.42
76.6
9 53
785.
55
A. E
quity
Sha
re C
apita
l
B. O
ther
Equ
ity
(` in
Cro
re)
(` in
Cro
re)
179
Part
icul
ars
Rese
rves
and
Sur
plus
Oth
er C
ompr
ehen
sive
In
com
e
Tota
lSe
curi
ties
Prem
ium
Bond
Re
dem
ptio
n Re
serv
e
Self
Insu
ranc
e Re
serv
e
CSR
Rese
rve
Gen
eral
Re
serv
eRe
tain
ed
Earn
ings
Fair
Val
ue th
roug
h O
ther
Com
preh
ensi
ve
Inco
me
Equi
ty
Inve
stm
ent
Bala
nce
at 1
st A
pril,
201
795
78.2
9 80
95.0
9 67
6.64
12
3.38
23
243.
64
2754
.86
103.
76
4457
5.66
Profitfortheyear
8238.96
8238.96
Othe
r Com
preh
ensiv
e In
com
e26
.64
(12.
92)
13.7
2 To
tal C
ompr
ehen
sive
Inc
ome
8265
.60
(12.
92)
8252
.68
Adju
stm
ents
dur
ing
the
year
Tran
sfer
to G
ener
al R
eser
ve35
00.0
0 (3
500.
00)
-Tr
ansf
er to
Bon
d re
dem
ptio
n re
serv
e2075.83
(2075.83)
-Tr
ansf
er
from
Bo
nd
Rede
mpt
ion
Rese
rve
(101
2.33
)10
12.3
3 -
Tran
sfer
to S
elf I
nsur
ance
Res
erve
226.
25
(226
.25)
-Tr
ansf
er fr
om S
elf I
nsur
ance
Res
erve
(167.86)
167.86
--
Tran
sfer
from
CSR
Res
erve
(0.0
5)0.
05
--
FinalDividendF.Y.2016-17
(175
2.59
)(1
752.
59)
TaxonFinalDividendF.Y.2016-17
(355
.44)
(355
.44)
InterimDividendF.Y.2017-18
(1281.74)
(1281.74)
TaxonInterimdividendF.Y.2017-18
(255
.20)
(255
.20)
Bala
nce
at 3
1st M
arch
, 201
895
78.2
9 91
58.5
9 73
5.03
12
3.33
26
911.
55
2585
.74
90.8
4 49
183.
37
(` in
Cro
re)
Theaccompanyingnotes(1to68)formanintegralpartoffinancialstatements
Refe
r to
Note
No
22 fo
r nat
ure
and
mov
emen
t of R
eser
ve a
nd S
urpl
us.
Plac
e: N
ew D
elhi
Date
: 29
th M
ay, 2
019
Div
ya T
ando
nCo
mpa
ny S
ecre
tary
K. S
reek
ant
Dire
ctor
(Fin
ance
)Ra
vi P
Sin
ghDi
rect
or (P
erso
nnel
)
(CA
S. M
urth
y)Pa
rtner
M.N
o. 0
7229
0
(CA
Rang
araj
an R
agha
van
Iyen
gar)
Partn
erM.No.041883
(CA
Man
asw
y Ko
thar
i)Pa
rtner
M.N
o. 0
6460
1
(CA
Got
am K
umar
Bag
ariy
a)Pa
rtner
M.N
o. 4
2510
4
For
S.K
. Mitt
al &
Co.
Char
tere
d Ac
coun
tant
sFi
rm R
egn
No. 0
0113
5N
For
R.G
.N.P
rice
& C
o.Ch
arte
red
Acco
unta
nts
FirmRegnNo.002785S
For K
otha
ri &
Co.
Char
tere
d Ac
coun
tant
sFirmRegnNo.301178E
For P
arak
h &
Co.
Char
tere
d Ac
coun
tant
sFi
rm R
egn
No. 0
0147
5C
For a
nd o
n be
half
of th
e Bo
ard
of D
irec
tors
STAT
EMEN
T O
F CH
ANG
ES I
N E
QU
ITY
for t
he p
erio
d en
ded
31st
Mar
ch, 2
019
(Con
td.)
Standalone Financial Statements
180
A. CASH FLOW FROM OPERATING ACTIVITIES ProfitBeforeTax&RegulatoryDeferralAccountBalances 11,488.98 10,269.62Add:NetmovementinRegulatoryDeferralAccountBalances(netoftax) (2,526.87) 3,284.19Add:TaxonNetmovementinRegulatoryDeferralAccountBalances (694.08) 44.23Profit Before Tax (including net movement in Regulatory Deferral Account Balances) 8,268.03 13,598.04Adjustment for : Depreciation&amortizationexpenses 10,200.67 9,091.25Transfer from Grants in Aid (70.77) (12.13)Deferredrevenue-AdvanceagainstDepreciation (180.64) (120.72)Provisions 408.70 31.67Changesinfairvalueoffinancialassetsthroughprofitorloss (6.97) (14.28)NetLossonDisposal/WriteoffofProperty,Plant&Equipment 25.58 10.30Deferred Foreign Currency Fluctuation Asset (941.06) 240.75Deferred Income from Foreign Currency Fluctuation 1,056.50 (203.50)Regulatory Deferral Account Debit Balances 3,220.95 (3,328.42)Finance Costs 9,091.42 7,590.66ProvisionsWrittenBack (28.25) (8.36)FERVloss/(gain) (0.16) (0.32)InterestincomeonDeposits,BondsandloanstoSubsidiaries&JVs (846.55) (537.71)Dividend income (149.78) (94.05) 21,779.64 12,645.14Operating profit before Changes in Assets and Liabilities 30,047.67 26,243.18 Adjustment for Changes in Assets and Liabilities: (Increase)/DecreaseinInventories (172.23) (152.56)(Increase)/DecreaseinTradeReceivables (1,279.11) (433.60)(Increase)/DecreaseinOtherFinancialAssets (5,920.32) (2,091.45)(Increase)/DecreaseinOtherNon-currentAssets (92.33) 74.93(Increase)/DecreaseinOtherCurrentAssets 120.38 (310.82)Increase/(Decrease)inLiabilities&Provisions 2,646.83 780.29 (4,696.78) (2,133.21)Cash generated from operations 25,350.89 24,109.97Directtaxespaid (2,201.97) (2,229.19)Net Cash from Operating Activities 23,148.92 21,880.78 B. CASH FLOW FROM INVESTING ACTIVITIES Property,Plant&EquipmentandCapitalWorkinProgress (19,462.03) (19,077.07) (IncludingAdvancesforCapitalExpenditure)Receipt of Grant 3,684.53 421.39InvestmentsinSubsidiaries&JVs (1,166.44) (318.68)Loans&AdvancestoSubsidiaries&JVs(Includingrepayments) (2,770.73) (4,633.08)Lease receivables 10.21 59.82InterestreceivedonDeposits,BondsandLoanstoSubsidiaries&JVs 906.23 472.59Dividend received 149.78 94.05Net Cash used in Investing Activities (18,648.45) (22,980.98) C. CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Borrowings Non Current 19,489.58 18,706.79 Current 17,420.00 6,675.00Repayment of Borrowings Non Current (9,495.60) (6,236.67) Current (14,120.00) (7,175.00)Adjustment for Fair Valuation of Long Term Loans 22.96 22.31
Statement of Cash Flows for the year ended 31st March, 2019
Particulars For the year ended 31st March, 2019
For the year ended 31stMarch,2018
(` in Crore)
181
Statement of Cash Flows for the year ended 31st March, 2019 (Contd.)Particulars For the year ended
31st March, 2019For the year ended
31stMarch,2018
Finance Costs paid (10,266.04) (8,959.48)Dividend paid (4,514.87) (3,034.33)DividendTaxpaid (909.57) (610.64)Net Cash used in Financing Activities (2,373.54) (612.02)D. NetchangeinCashandCashequivalents(A+B+C) 2,126.93 (1,712.22)E. CashandCashequivalents(Openingbalance) 1,516.21 3,228.43F. CashandCashequivalents(Closingbalance)(ReferNoteNo15)* 3,643.14 1,516.21
Theaccompanyingnotes(1to68)formanintegralpartoffinancialstatements * Includes ` 3471.01 crore (Previous Year ` 1373.92 crore) held in designated accounts which is not available for use by the Company. Further Notes: 1. Cashandcashequivalentsconsistofcheques,drafts,stampsinhands,balanceswithbanksanddepositswithoriginalmaturityofupto
three months. 2. Previousyearfigureshavebeenre-grouped/re-arrangedwherevernecessary. 3. Reconciliationbetweentheopeningandclosingbalancesinthebalancesheetforliabilitiesarisingfromfinancingactivities.
(` in Crore)
(` in Crore)
(` in Crore)
OpeningBalanceasat1stApril,2018 1,33,660.62 1,000.00NetCashFlowsduringtheyear 336.68 3,300.00Non-cashchangesdueto: -Interestonborrowings 9,601.06 -Variationinexchangerates 1,556.46 -Fairvalueadjustments 22.96 Closing Balance as at 31st March, 2019 1,45,177.78 4,300.00
OpeningBalanceasat1stApril,2017 1,20,368.76 1,500.00Net Cash Flows during the year 5,472.50 (500.00)Non-cashchangesdueto: -Interestonborrowings 7,274.43 -Variationinexchangerates 522.62 -Fairvalueadjustments 22.31 Closing Balance as at 31st March, 2018 1,33,660.62 1,000.00
Particulars Non-currentborrowings Current borrowings
Particulars Non-currentborrowings Current borrowings
Place: New DelhiDate: 29th May, 2019
Divya TandonCompany Secretary
K. SreekantDirector (Finance)
Ravi P SinghDirector (Personnel)
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari)Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
For and on behalf of the Board of Directors
As per our report of even date
Standalone Financial Statements
182
1. Corporate and General Information Power Grid Corporation of India Limited (‘the Company’) is a public company domiciled and incorporated in India under the provisions
ofCompaniesActanditssharesarelistedontheNationalStockExchange(NSE)andBSELimited(BSE)inIndia.TheregisteredofficeoftheCompanyissituatedatB-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi,IndiaanditsCorporateOfficeis locatedatSaudamini,PlotNo.2,Sector-29,Gurgaon,Haryana.
TheCompanyisnotifiedastheCentralTransmissionUtility(CTU)underTheElectricityAct,2003.Itisprincipallyengagedinplanning,implementation,operationandmaintenanceofInter-StateTransmissionSystem(ISTS),Telecomandconsultancyservices.
ThefinancialstatementsofthecompanyfortheyearendedMarch31,2019wereapprovedforissuebytheBoardofDirectorson 29th May, 2019.
2. Significant Accounting Policies2.1 Basis of Preparation i) Compliance with Ind AS Thefinancialstatementsareprepared incompliancewithIndianAccountingStandards(IndAS)notifiedunderSection133of the
Companies Act, 2013 (the Act), Companies (Indian Accounting Standards) Rules, 2015, the relevant provisions of the Companies Act, 2013(totheextentnotified),TheCompaniesAct,1956andtheprovisionsofElectricityAct,2003,ineachcase,totheextentapplicableand as amended thereafter.
ii) Basis of Measurement Thefinancialstatementshavebeenpreparedonaccrualbasisandunderthehistoricalcostconventionexceptfollowingwhichhave
been measured at fair value: • Certain financial assets and liabilities measured at fair value (refer Note no. 2.13 for accounting policy regarding financial
instruments), • Definedbenefitplans–planassetsmeasuredatfairvalue
iii) Functional and presentation currency ThefinancialstatementsarepresentedinIndianRupees(Rupeesor`), which is the Company’s functional and presentation currency
andallamountsareroundedtothenearestcroreandtwodecimalsthereof,exceptasstatedotherwise. iv) Use of estimates The preparation of financial statements requires estimates and assumptions that affect the reported amount of assets, liabilities,
revenueandexpensesduringthereportingperiod.Although,suchestimatesandassumptionsaremadeonareasonableandprudentbasis taking into account all available information, actual results could differ from these estimates. The estimates andunderlyingassumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revisediftherevisioneffectsonlythatperiodorintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfuture years (refer Note no. 3 on critical accounting estimates, assumptions and judgments).
v) Current and non-current classification TheCompanypresentsassetsandliabilitiesinthebalancesheetbasedoncurrent/non-currentclassification. An asset is current when it is: • Expectedtoberealizedorintendedtobesoldorconsumedinnormaloperatingcycle; • Heldprimarilyforthepurposeoftrading; • Expectedtoberealizedwithintwelvemonthsafterthereportingperiod;or • Cashorcashequivalentunlessrestrictedfrombeingexchangedorusedtosettlealiabilityforatleasttwelvemonthsafterthe
reporting period. Allotherassetsareclassifiedasnon-current. A liability is current when: • Itisexpectedtobesettledinnormaloperatingcycle; • Itisheldprimarilyforthepurposeoftrading; • Itisduetobesettledwithintwelvemonthsafterthereportingperiod;or • Thereisnounconditionalrighttodefersettlementoftheliabilityforatleasttwelvemonthsafterthereportingperiod. Allotherliabilitiesareclassifiedasnon-current. Deferredtaxassets/liabilitiesareclassifiedasnon-current. The Company recognizes twelve months period as its operating cycle.2.2 Property, Plant and Equipment TheCompanyhadoptedtoconsiderthecarryingvalueofProperty,PlantandEquipmentasperpreviousGAAPonthedateoftransition
to Ind AS (1st April, 2015) to be the deemed cost as per Ind AS 101 ‘First time Adoption of Indian Accounting Standards’. Initial Recognition and Measurement Property, Plant andEquipment is initiallymeasured at cost of acquisition/construction including any costs 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.
Notes to Separate Financial Statements
183
Afterinitialrecognition,Property,PlantandEquipmentiscarriedatcostlessaccumulateddepreciation/amortisationandaccumulatedimpairment losses, if any.
Property,PlantandEquipmentacquiredasreplacementoftheexistingassetsarecapitalizedanditscorrespondingreplacedassetsremoved/retiredfromactiveusearederecognized.
Ifthecostofthereplacedpartorearlierinspectionisnotavailable,theestimatedcostofsimilarnewparts/inspectionisusedasanindicationofwhatthecostoftheexistingpart/inspectioncomponentwaswhentheitemwasacquiredorinspectionwascarriedout.
Inthecaseofcommissionedassets,depositworks/cost-pluscontractswherefinalsettlementofbillswithcontractors isyettobeeffected,capitalizationisdoneonprovisionalbasissubjecttonecessaryadjustmentsintheyearoffinalsettlement.
Assetsandsystemscommontomorethanonetransmissionsystemarecapitalizedonthebasisoftechnicalestimates/assessments. Transmission system assets are considered as ready for intended use from the date of commercial operation declared in terms of CERC
TariffRegulationsandcapitalizedaccordingly. Thecostoflandincludesprovisionaldeposits,payments/liabilitiestowardscompensation,rehabilitationandotherexpenseswherever
possession of land is taken. Expenditureonleveling,clearingandgradingoflandiscapitalizedaspartofcostoftherelatedbuildings. Spares parts whose cost is `5,00,000/-andabove,standbyequipmentandservicingequipmentwhichmeetstherecognitioncriteriaof
Property,PlantandEquipmentarecapitalized. Subsequent costs Subsequentexpenditureisrecognizedasanincreaseincarryingamountofassetswhenitisprobablethatfutureeconomicbenefits
derivingfromthecostincurredwillflowtothecompanyandcostoftheitemcanbemeasuredreliably. ThecostofreplacingpartofanitemofProperty,Plant&Equipmentisrecognizedinthecarryingamountoftheitemifitisprobable
thatfutureeconomicbenefitsembodiedwithinthepartwillflowtothecompanyanditscostcanbemeasuredreliably.Thecarryingamountofthereplacedpartisderecognized.Thecostsoftheday-to-dayservicingofproperty,plantandequipmentarerecognisedintheStatementofProfit&Lossasincurred.
Derecognition An itemofProperty,PlantandEquipment isderecognizedwhennofutureeconomicbenefitsareexpectedfromtheiruseorupon
disposal. Thegainor lossarisingonthedisposalorretirementofanitemofproperty,plantandequipment isdeterminedasthedifference
betweenthenetdisposalproceedsandthecarryingamountoftheassetandisrecognisedintheStatementofProfitandLossonthedate of disposal or retirement.
2.3 Capital Work-In-Progress (CWIP) Costofmaterial,erectionchargesandotherexpensesincurredfortheconstructionofProperty,PlantandEquipmentareshownas
CWIPbasedonprogressoferectionworktillthedateofcapitalization. Expenditure of Corporate office, Regional Offices and Projects, attributable to construction of property, plant and equipment are
identifiedandallocatedonasystematicbasistothecostoftherelatedassets. Interestduringconstructionandexpenditure(net)allocatedtoconstructionasperpolicyabovearekeptasaseparateitemunderCWIP
andapportionedtotheassetsbeingcapitalizedinproportiontotheclosingbalanceofCWIP. Depositworks/cost-pluscontractsareaccountedforonthebasisofstatementreceivedfromthecontractorsortechnicalassessment
of work completed. Unsettledliabilityforpricevariation/exchangeratevariationincaseofcontractsisaccountedforonestimatedbasisaspertermsofthe
contracts.2.4 Intangible Assets and Intangible Assets under development The Company had opted to consider the carrying value of Intangible Assets as per previous GAAP on the date of transition to Ind AS
(1st April, 2015) to be the deemed cost as per Ind AS 101 ‘First time Adoption of Indian Accounting Standards’. Intangible assets are measured on initial recognition at cost. After initial recognition, intangible assets are carried at cost less any
accumulated amortisation and accumulated impairment losses. SubsequentexpenditureonalreadycapitalizedIntangibleassetsiscapitalisedwhenitincreasesthefutureeconomicbenefitsembodied
inanexistingassetandisamortisedprospectively. Thecostofsoftware(whichisnotanintegralpartoftherelatedhardware)acquiredforinternaluseandresultinginsignificantfuture
economicbenefitsisrecognizedasanintangibleassetwhenthesameisreadyforitsuse. Afforestationcharges foracquiring right-of-way for laying transmission linesareaccounted foras intangibleassetson thedateof
capitalization of related transmission lines. Expenditureincurred,eligibleforcapitalizationundertheheadIntangibleAssets,arecarriedas“IntangibleAssetsunderDevelopment”
till such assets are ready for their intended use. Expenditureonresearchshallberecognisedasanexpensewhenitisincurred. ExpenditureondevelopmentshallberecognisedasIntangibleassetifitmeetstheeligibilitycriteriaasperIndAS38‘IntangibleAssets’,
otherwiseitshallberecognisedasanexpense. AnitemofIntangibleassetisderecognisedupondisposalorwhennofutureeconomicbenefitsareexpectedfromitsuseordisposal.
GainsorlossesarisingfromderecognitionofanintangibleassetaremeasuredasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetandarerecognisedintheStatementofProfitandLosswhentheassetisderecognised.
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2.5 Investment property The Company had opted to consider the carrying value of Investment Property as per previous GAAP on the date of transition to Ind
AS (1st April, 2015) to be the deemed cost as per Ind AS 101 ‘First time Adoption of Indian Accounting Standards’. Investmentpropertycomprisesportionsoflandand/orbuildingsthatareheldforlongtermrentalyieldsand/orforcapitalappreciation. Investmentpropertiesareinitiallymeasuredatcost,includingtransactioncosts.Subsequenttoinitialrecognition,investmentproperties
are carried at cost less accumulated depreciation and accumulated impairment loss, if any. Transfers to or from investment property is made when and only when there is a change in use. Investmentpropertiesarederecognisedeitherwhentheyhavebeendisposedofforwhentheyarepermanentlywithdrawnfromuse
andnofutureeconomicbenefitisexpectedfromtheirdisposal.Thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetisrecognisedasprofitorlossintheperiodofderecognition.
2.6 Depreciation / Amortisation Property, Plant & Equipment Depreciation/amortisationontheassetsrelatedtotransmissionbusinessisprovidedonstraightlinemethodfollowingtheratesand
methodologynotifiedbytheCERCforthepurposeofrecoveryoftariffandonassetsoftelecomandconsultancybusinessisprovidedonstraightlinemethodasperusefullifespecifiedinScheduleIIoftheCompaniesAct,2013exceptforassetsspecifiedinthefollowingparagraphs.
ULDC assets commissioned prior to 1st April 2014 are depreciated on Straight Line Method@ 6.67% per annum. Such assetscommissionedonorafter1stApril2014aredepreciatedonstraightlinemethodfollowingtheratesandmethodologynotifiedbytheCERCforthepurposeofrecoveryoftariff.
Inthecaseofproperty,plantandequipmentofNationalThermalPowerCorporationLimited(NTPC),NationalHydro-ElectricPowerCorporationLimited(NHPC),North-EasternElectricPowerCorporationLimited(NEEPCO),NeyveliLigniteCorporationLimited(NLC)transferred w.e.f. April 1, 1992, Jammu and Kashmir Lines w.e.f. April 1, 1993, and Tehri Hydro Development Corporation Limited (THDC) w.e.f. August 1, 1993, depreciation is charged based on gross block as indicated in transferor’s books with necessary adjustments so thatthelifeoftheassetsaslaiddownintheCERCnotificationfortariffismaintained.
Leasehold land is fully amortized over lease period or life of the related plant whichever is lower in accordance with the rates and methodologyspecifiedinCERCTariffRegulation.Leaseholdlandacquiredonperpetualleaseisnotamortized.
DepreciationonbuildingsheldasinvestmentpropertyisprovidedonstraightlinemethodasspecifiedinScheduleIIofTheCompaniesAct, 2013.
Depreciationonsparesparts,standbyequipmentandservicingequipmentwhicharecapitalized,isprovidedonstraightlinemethodfrom the date they are available for use over the remaining useful life of the related assets of transmission business, following the rates andmethodologynotifiedbytheCERC.
Depreciation on following assets is provided based on estimated useful life as per technical assessment.
Particulars Useful lifea.Computers&Peripherals 3 Years
b.Servers&NetworkComponents 5 years
Residual value of above assets is considered as Nil. Mobilephonesarechargedoffintheyearofpurchase. FixedAssetscosting`5,000/-orless,arefullydepreciatedintheyearofacquisition. Wherethecostofdepreciableproperty,plantandequipmenthasundergoneachangeduetoincrease/decreaseinlongtermmonetary
itemsonaccountofexchangeratefluctuation,priceadjustment,changeindutiesorsimilarfactors,theunamortizedbalanceofsuchassetisdepreciatedprospectivelyattheratesandmethodologyasspecifiedbytheCERCTariffRegulations,exceptfortelecomandconsultancybusinessassetswhereresiduallifeisdeterminedonthebasisofusefullifeofproperty,plantandequipmentasspecifiedin Schedule II of the Companies Act, 2013.
Depreciationonadditionsto/deductionsfromProperty,PlantandEquipmentduringtheyearischargedonpro-ratabasisfrom/uptothedateonwhichtheassetisavailableforuse/disposed.
The residual values, useful lives and methods of depreciation for assets other than assets related to transmission business are reviewed ateachfinancialyear-endandadjustedprospectively,whereverrequired.
Intangible Assets Cost of software capitalized as intangible asset is amortized over the period of legal right to use or 3 years, whichever is less with Nil
residual value. Afforestationchargesareamortizedoverthirtyfiveyearsfromthedateofcapitalizationofrelatedtransmissionassetsfollowingthe
ratesandmethodologynotifiedbyCentralElectricityRegulatoryCommission(CERC)TariffRegulations. Telecom Licenses are amortised on straight line basis over their respective useful lives. Expenditureondevelopmentof1200kvTransmissionSystemshallbeamortisedoveraperiodof10years. Amortisationonadditionsto/deductionsfromIntangibleAssetsduringtheyearischargedonpro-ratabasisfrom/uptothedateon
whichtheassetisavailableforuse/disposed. Theamortizationperiodandtheamortizationmethodforanintangibleassetarereviewedateachfinancialyear-endandareaccounted
foraschangeinaccountingestimatesinaccordancewithIndAS8“AccountingPolicies,ChangesinAccountingEstimatesandErrors”.
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2.7 Borrowing Costs Alltheborrowedfunds(exceptshorttermfundsforworkingcapital)areearmarkedtospecificprojects.Theborrowingcosts(including
bondissueexpenses,interest,discountonbonds,frontendfee,guaranteefee,managementfeeetc.)areallocatedtotheprojectsinproportion to the funds so earmarked.
Borrowingcostsdirectlyattributabletotheacquisitionorconstructionofqualifyingassetsarecapitalised(netofincomeontemporarydeploymentoffunds)aspartofthecostofsuchassetstilltheassetsarereadyfortheintendeduse.Qualifyingassetsareassetswhichtake a substantial period of time to get ready for their intended use.
Other borrowing costs are charged to revenue. 2.8 Impairment of non-financial assets ThecarryingamountsoftheCompany’snon-financialassetsarereviewedateachreportingdatetodeterminewhetherthereisany
indicationofimpairmentconsideringtheprovisionsofIndAS36‘ImpairmentofAssets’.Ifanysuchindicationexists,thentheasset’srecoverable amount is estimated.
Therecoverableamountofanassetorcash-generatingunitisthehigherofitsfairvaluelesscoststodisposalanditsvalueinuse.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Forthepurposeofimpairmenttesting,assetsthatcannotbetestedindividuallyaregroupedtogetherintothesmallestgroupofassetsthatgeneratescashinflowsfromcontinuingusethatarelargelyindependentofthecashinflowsofotherassetsorgroupsofassets(the“cash-generatingunit”,or“CGU”).
AnimpairmentlossisrecognizedifthecarryingamountofanassetoritsCGUexceedsitsestimatedrecoverableamount.Impairmentlossesarerecognizedinthestatementofprofitandloss.ImpairmentlossesrecognizedinrespectofCGUsarereducedfromthecarryingamountsoftheassetsoftheCGU.
Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased ornolongerexists.Animpairmentlossisreversediftherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversedonlytotheextentthattheasset’scarryingamountdoesnotexceedthecarryingamount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
2.9 Cash and cash equivalents Cashandcashequivalentsincludecashonhandandatbank,anddepositsheldatcallwithbankshavingamaturityofthreemonths
orlessfromthedateofacquisitionthatarereadilyconvertibletoaknownamountofcashandaresubjecttoaninsignificantriskofchanges in value.
2.10 Inventories Inventories are valued at lower of the cost, determined on weighted average basis and net realizable value. Steel scrap and conductor scrap are valued at estimated realizable value or book value, whichever is less. SpareswhichdonotmeettherecognitioncriteriaasProperty,PlantandEquipment,includingsparepartswhosecostislessthan
`5,00,000/-arerecordedasinventories. Surplus materials as determined by the management are held for intended use and are included in the inventory. The diminution in the value of obsolete, unserviceable and surplus stores and spares is ascertained on review and provided for.2.11 Leases i) As a Lessor The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception
ofthelease.Thearrangementis,orcontains,aleaseiffulfillmentofthearrangementisdependentontheuseofaspecificassetorassetsandthearrangementconveysarighttousetheassetorassets,evenifthatrightisnotexplicitlyspecifiedinanarrangement.
Aleaseisclassifiedattheinceptiondateasafinanceleaseoranoperatinglease. a) Finance leases Aleasethattransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanassetisclassifiedasafinancelease. State sector Unified Load Dispatch Centre (ULDC)/ Fiber Optic Communication Assets (FOC)/Bilateral line assets leased to the
beneficiariesareconsideredasFinanceLease.Netinvestmentinsuchleasedassetsarerecordedasreceivableatthelowerofthefairvalueof the leasedpropertyand thepresentvalueof theminimum leasepaymentsalongwithaccretion insubsequentyearsis accounted for as LeaseReceivables under current andnon-current other financial assets.Wherever grant-in-aid is received forconstructionofStateSectorULDC,leasereceivableisaccountedfornetofsuchgrant.
TheinterestelementofleaseisaccountedintheStatementofProfitandLossovertheleaseperiodbasedonapatternreflectingaconstantperiodicrateofreturnonthenetinvestmentasperthetariffnotifiedbyCERC.
FERV on foreign currency loans relating to leased assets is adjusted to the amount of lease receivables and is amortised over the remaining tenure of lease. FERV recovery (as per CERC norms) from the constituents is recognised net of such amortised amount.
b) Operating leases Anoperatingleaseisaleaseotherthanafinancelease.Leasesinwhichasignificantportionoftherisksandrewardsofownershipare
retainedbythelessorareclassifiedasoperatingleases. Foroperatingleases,theassetiscapitalizedasproperty,plantandequipmentanddepreciatedoveritseconomiclife.Rentalincome
from operating lease is recognized over the term of the arrangement. ii) As a Lessee a) Finance lease Leases of property, plant and equipmentwhere the company, as lessee has substantially all risks and rewards of ownership are
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classifiedasfinancelease.Oninitialrecognition,assetsheldunderfinanceleasearerecordedasproperty,plantandequipmentandrelatedliabilityisrecognizedunderborrowings.Atinceptionofthelease,financeleasesarerecordedatamountequaltofairvalueofleasedassetoriflower,thepresentvalueofminimumleasepayments.Minimumleasepaymentsunderfinanceleasesareapportionedbetweenthefinanceexpenseandreductionofthefinanceliability.
Thefinanceexpenseisallocatedtoeachperiodduringtheleasetermsoastoproduceaconstantperiodicrateof interestontheremaining balance of the liability.
b) Operating leases Paymentsmadeunderoperatingleasesarerecognizedasanexpenseovertheleaseterm.2.12 Employee benefits2.12.1 Defined contribution plans Adefinedcontributionplanisapost-employmentbenefitplanunderwhichanentitypaysfixedcontributionsintoseparateentities
(Funds)andwillhavenolegalorconstructiveobligationtopayfurthercontributions,iftheFunddoesnotholdsufficientassetstopayallemployee’sbenefitsrelatedtoemployeeserviceinthecurrentandpriorperiods.Obligationsforcontributionstodefinedcontributionplansarerecognizedasanemployeebenefitsexpenseinthestatementofprofitandlossintheperiodduringwhichservices are rendered by employees.
TheCompanyhasadefinedcontributionpensionschemewhichisadministeredthroughaseparatetrust.TheobligationoftheCompanyistocontributetothetrusttotheextentofamountnotexceeding30%ofbasicpayanddearnessallowancelessemployer’scontributiontowardsprovidentfund,gratuity,postretirementmedicalfacility(PRMF)oranyotherretirementbenefits.Thecontributionstothefundfortheyeararerecognizedasanexpenseandchargedtothestatementofprofitandloss.
2.12.2 Defined benefit plans Adefinedbenefitplanisapost-employmentbenefitplanotherthanadefinedcontributionplan.TheCompany’s liabilitytowards
gratuity, post-retirementmedical facility, baggageallowance for settlement athome townafter retirement, long serviceawardonretirementandprovidentfundschemetotheextentofinterestliabilityonprovidentfundcontributionareinthenatureofdefinedbenefitplans.
ThegratuityisfundedbytheCompanyandismanagedbyseparatetrust.TheCompanyhasPost-RetirementMedicalFacility(PRMF),under which retired employee and the spouse are provided medical facilities in the Company empanelled hospitals. They can also avail treatmentasout-patientsubjecttoaceilingfixedbytheCompany.
TheCompanypaysfixedcontributiontoProvidentFundatpredeterminedratestoaseparatetrust,whichinveststhefundsinpermittedsecurities.Thecontributionstothefundfortheyeararerecognizedasexpenseandarechargedtothestatementofprofitandloss.TheobligationoftheCompanyislimitedtosuchfixedcontributionsandtoensureaminimumrateofinterestoncontributionstothemembersasspecifiedbytheGovernmentofIndia(GoI).
TheCompanyhasschemesforpaymentofbaggageallowancetowardsexpensesforsettlementathometownforthesuperannuatedemployees&theirdependentsandforprovidingaLongServiceAwardtoallregularemployeesoftheCompanyonsuperannuation.
TheCompany’snetobligationinrespectofdefinedbenefitplansiscalculatedseparatelyforeachplanbyestimatingtheamountoffuturebenefitthatemployeeshaveearnedinreturnfortheirserviceinthecurrentandpriorperiods;thatbenefitisdiscountedtodetermine its present value. Any unrecognized past service costs and the fair value of any plan assets are deducted. The discount rate is based on the prevailing market yields of Indian government securities as at the reporting date that have maturity datesapproximatingthetermsoftheCompany’sobligationsandthataredenominatedinthesamecurrencyinwhichthebenefitsareexpectedtobepaid.
Thecalculationisperformedannuallybyaqualifiedactuaryusingtheprojectedunitcreditmethod.WhenthecalculationresultsinabenefittotheCompany,therecognizedassetislimitedtothetotalofanyunrecognizedpastservicecostsandthepresentvalueofeconomicbenefitsavailableintheformofanyfuturerefundsfromtheplanorreductionsinfuturecontributionstotheplan.AneconomicbenefitisavailabletotheCompanyifitisrealizableduringthelifeoftheplan,oronsettlementoftheplanliabilities.Anyactuarial gains or losses are recognized in OCI in the period in which they arise.
Whenthebenefitsofaplanareimproved,theportionoftheincreasedbenefitrelatingtopastservicebyemployeesisrecognizedinthestatementofprofitandlossonastraight-linebasisovertheaverageperioduntilthebenefitsbecomevested.Totheextentthatthebenefitsvestimmediately,theexpenseisrecognizedimmediatelyinthestatementofprofitandloss.
2.12.3 Other long-term employee benefits Benefits under theCompany’s leave encashment and employee family economic rehabilitation scheme constitute other long term
employeebenefits. TheCompany’snetobligationinrespectofleaveencashmentistheamountoffuturebenefitthatemployeeshaveearnedinreturn
fortheirserviceinthecurrentandpriorperiods;thatbenefitisdiscountedtodetermineitspresentvalue.ThediscountrateisbasedontheprevailingmarketyieldsofIndiangovernmentsecuritiesasatthereportingdatethathavematuritydatesapproximatingtheterms of the Company’s obligations. The calculation is performed using the projected unit credit method. Any actuarial gains or losses arerecognizedinthestatementofprofitandlossintheperiodinwhichtheyarise.
Asper‘POWERGRIDEmployeeFamilyEconomicRehabilitationScheme’,whichisoptional,intheeventofdeathorpermanenttotaldisabilityofanemployee,thedependent(s)ortheemployee,asthecasemaybe,ispaidafixedamountbasedonthelastsalarydrawnbytheemployeetillthenotionaldateofsuperannuationoftheemployeeupondepositingthefinalprovidentfundandgratuityamount which will be interest free.
2.12.4 Short-term benefits Shorttermemployeebenefitobligationsaremeasuredonanundiscountedbasisandareexpensedastherelatedserviceisprovided. AliabilityisrecognizedfortheamountexpectedtobepaidunderperformancerelatedpayiftheCompanyhasapresentlegalor
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constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
2.13 Financial instruments Afinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityorequityinstrumentof
another entity. Financial Assets Classification TheCompanyclassifiesitsfinancialassetsinthefollowingcategories: • atamortisedcost, • atfairvaluethroughothercomprehensiveincome Theclassificationdependsonthefollowing: • theentity’sbusinessmodelformanagingthefinancialassetsand • thecontractualcashflowcharacteristicsofthefinancialasset Initial recognition and measurement Allfinancialassetsarerecognisedinitiallyatfairvalueplus,inthecaseoffinancialassetsnotrecordedatfairvaluethroughprofitor
loss,transactioncosts,ifany,thatareattributabletotheacquisitionofthefinancialasset. Subsequent measurement Debt Instruments at Amortised cost:Assetsthatareheldforcollectionofcontractualcashflowswherethosecashflowsrepresent
solelypaymentsofprincipalandinterestaremeasuredatamortisedcost.Againorlossonadebtinvestmentthatissubsequentlymeasuredatamortisedcost isrecognisedinprofitor losswhentheasset isderecognisedorimpaired.Interest incomefromthesefinancialassetsisincludedinfinanceincomeusingtheeffectiveinterestratemethod.
Debt Instruments at Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cashflowsandforsellingthefinancialassets,wheretheassets’cashflowsrepresentsolelypaymentsofprincipalandinterest,aremeasured at fair value through other comprehensive income (FVOCI).
Equity investments All equity investments in scope of Ind AS 109 ‘Financial Instruments’ aremeasured at fair value. The companymay, on initial
recognition,makeanirrevocableelectiontopresentsubsequentchangesinthefairvalueinothercomprehensiveincome(FVOCI)onaninstrumentby-instrumentbasis.
ForequityinstrumentsclassifiedasatFVOCI,allfairvaluechangesontheinstrument,excludingdividendsarerecognizedintheOCI.ThereisnorecyclingoftheamountsfromOCItoProfitorLoss,evenonsaleofinvestment.However,theCompanymaytransferthecumulativegainorlosswithinequity.
De-recognition of financial assets Afinancialassetisderecognizedonlywhen Therightstoreceivecashflowsfromtheassethaveexpired,or - Thecompanyhastransferredtherightstoreceivecashflowsfromthefinancialasset,or - Retainsthecontractualrightstoreceivethecashflowsofthefinancialassets,butassumesacontractualobligationtopaythecash
flowstooneormorerecipients. Impairment of financial assets: For trade receivables, the companyapplies the simplifiedapproach requiredby IndAS109Financial Instruments,which requires
expectedlifetimelossestoberecognisedfrominitialrecognitionofthereceivables. Forrecognitionof impairmentlossonotherfinancialassetsandriskexposure,thecompanydetermineswhethertherehasbeena
significantincreaseinthecreditrisksinceinitialrecognition.Ifcreditriskhasnotincreasedsignificantly,12-monthExpectedCreditLoss(ECL)isusedtoprovideforimpairmentloss.However,ifcreditriskhasincreasedsignificantly,lifetimeECLisused.If,inasubsequentperiod,creditqualityoftheinstrumentimprovessuchthatthereisnolongerasignificantincreaseincreditrisksinceinitialrecognition,thentheentityrevertstorecognizingimpairmentlossallowancebasedon12-monthECL.
Financial Liabilities FinancialliabilitiesoftheCompanyarecontractualobligationtodelivercashoranotherfinancialassettoanotherentityortoexchange
financialassetsorfinancialliabilitieswithanotherentityunderconditionsthatarepotentiallyunfavorabletotheCompany. TheCompany’sfinancialliabilitiesincludeloans&borrowings,tradeandotherpayables. Classification, initial recognition and measurement Financial liabilitiesarerecognisedinitiallyatfairvalueminustransactioncoststhataredirectlyattributabletotheissueoffinancial
liabilities.Financial liabilitiesareclassifiedassubsequentlymeasuredatamortizedcost.Amortisedcost iscalculatedbytaking intoaccountanydiscountorpremiumonacquisitionandfeesorcoststhatareanintegralpartoftheeffectiveinterestrate(EIR).Anydifferencebetweentheproceeds(netoftransactioncosts)andtheredemptionamountisrecognisedintheStatementofProfitandLoss over the period of the borrowings using the EIR.
Subsequent measurement Afterinitialrecognition,financialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheEIRmethod.Gainsandlossesare
recognisedinStatementofProfitorLosswhentheliabilitiesarederecognisedaswellasthroughtheEIRamortisationprocess. TheEIRamortisationisincludedasfinancecostsintheStatementofProfitandLoss.
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De-recognition of financial liability Afinancial liability isderecognisedwhentheobligationunder the liability isdischargedorcancelledorexpires. Whenanexisting
liabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasthederecognitionoftheoriginalliabilityandtherecognitionofanewliability.Thedifferencebetweenthecarryingamountofafinancialliabilitythathasbeenextinguishedortransferredtoanotherpartyandtheconsiderationpaid,includinganynon-cashassetstransferredorliabilitiesassumed,isrecognisedinStatementofProfitandLossasotherincomeorfinancecost.
Offsetting of financial instruments FinancialassetsandfinancialliabilitiesareoffsetandthenetamountisreportedintheBalanceSheetifthereisacurrentlyenforceable
legalrighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasis,torealisetheassetsandsettletheliabilitiessimultaneously.
2.14 Investment in Subsidiaries AsubsidiaryisanentitycontrolledbytheCompany.ControlexistswhentheCompanyhaspowerovertheentity,isexposed,orhas
rightstovariablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsbyusingitspowerovertheentity.
Power isdemonstrated throughexisting rights thatgive theability todirect relevantactivities, thosewhichsignificantlyaffect theentity’s returns.
Investmentsinsubsidiariesarecarriedatcost.Thecostcomprisespricepaidtoacquireinvestmentanddirectlyattributablecost.2.15 Investment in Joint Ventures and Associates A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net
assetsof the jointventure.Jointcontrol is thecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivitiesrequireunanimousconsentofthepartiessharingcontrol.
Theinvestmentinjointventuresandassociatesarecarriedatcost.Thecostcomprisespricepaidtoacquireinvestmentanddirectlyattributable cost.
2.16 Foreign Currency Translation (a) Functional and presentation currency ItemsincludedinthefinancialstatementsoftheCompanyaremeasuredusingthecurrencyoftheprimaryeconomicenvironmentin
whichtheCompanyoperates(‘thefunctionalcurrency’).ThefinancialstatementsarepresentedinIndianRupees(Rupeesor₹),whichis the Company’s functional and presentation currency.
(b) Transactions and balances Transactionsinforeigncurrenciesareinitiallyrecordedattheexchangeratesprevailingonthedateofthetransaction.Foreigncurrency
monetaryitemsaretranslatedwithreferencetotheratesofexchangerulingonthedateoftheBalanceSheet.Non-Monetaryitemsdenominated in foreign currency are reported at the exchange rate ruling on the date of initial recognition of the non-monetaryprepaymentassetordeferredincomeliability,orthedatethatrelateditemisrecognizedinthefinancialstatements,whicheverisearlier.In case the transaction is recognized in stages, then transaction date is established for each stage.
Foreignexchangegainsandlosses(otherthanrelatedtoforeigncurrencyloansoutstanding)arepresentedinthestatementofprofitandlossonanetbasiswithinothergains/(losses).
TheCompanyhasavailedtheexemptionavailableinIndAS101,tocontinuethepolicyadoptedforaccountingforexchangedifferencesarisingfromtranslationoflong-termforeigncurrencymonetaryliabilitiesoutstandingasonMarch31,2016.
Foreign currency loans outstanding as on March 31, 2016: ForeignExchangeRateVariation(FERV)arisingonsettlement/translationofsuchforeigncurrencyloansrelatingtoproperty,plantand
equipment/capitalwork-in-progressisadjustedtothecarryingcostofrelatedassetsandisrecoverable/payablefromthebeneficiarieson actual payment basis as per Central Electricity Regulatory Commission (CERC) norms w.e.f. 1st April, 2004 or Date of Commercial Operation(DOCO)whicheverislater.TheaboveFERVtotheextentrecoverableorpayableaspertheCERCnormsisaccountedforasfollows:
i) FERVrecoverable/payableadjustedtocarryingcostofproperty,plantandequipmentisaccountedforas‘Deferredforeigncurrencyfluctuationasset/liabilitya/c’withacorrespondingcredit/debitto‘Deferredincome/expenditurefromforeigncurrencyfluctuationa/c’.
ii) ‘Deferredincome/expenditurefromforeigncurrencyfluctuationa/c’isamortizedintheproportioninwhichdepreciationischargedon such FERV.
iii) Theamountrecoverable/payableasperCERCnormsonyeartoyearbasisisadjustedtothe‘Deferredforeigncurrencyfluctuationasset/liabilitya/c’withcorrespondingdebit/credittothetradereceivables.
FERVearlierchargedtoStatementofProfitandLoss&includedinthecapitalcostforthepurposeoftariffisadjustedagainst‘Deferredforeigncurrencyfluctuationasset/liabilitya/c’.
FERVarisingoutofsettlement/translationoflongtermmonetaryitems(otherthanforeigncurrencyloans)relatingtoPropertyPlant&Equipment/CWIPisadjustedinthecarryingcostofrelatedassets.
FERVarisingduringtheconstructionperiodfromsettlement/translationofmonetaryitems(otherthannoncurrentloans)denominatedinforeigncurrencytotheextentrecoverable/payabletothebeneficiariesascapitalcostasperCERCtariffRegulationareaccountedas Regulatory Deferral Account Balances. Transmission charges recognised on such amount is adjusted against above account. Other exchangedifferencesarerecognizedasincomeorexpensesintheperiodinwhichtheyarise.
Foreign currency loans drawn on or after April 1, 2016: Exchangedifferencesarisingfromforeigncurrencyborrowingtotheextentregardedasanadjustmenttointerestcostsaretreatedas
borrowingcost.OtherexchangedifferencesarerecognizedintheStatementofProfitandLoss.
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ExchangedifferencetotheextentrecoverableasperCERCtariffregulationsarerecognizedasRegulatoryDeferralAccountBalancesthroughStatementofProfitandLoss.
2.17 Income Tax Incometaxexpenserepresentsthesumofcurrentanddeferredtax.TaxisrecognisedintheStatementofProfitandLoss,exceptto
theextentthatitrelatestoitemsrecogniseddirectlyinequityorothercomprehensiveincome.Inthiscasethetaxisalsorecogniseddirectlyinequityorinothercomprehensiveincome.
Current income tax TheCurrentTaxisbasedontaxableprofitfortheyearunderthetaxlawsenactedandapplicabletothereportingperiodinthecountries
wherethecompanyoperatesandgeneratestaxableincome. Deferred tax Deferredtaxisrecognisedontemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesinthecompany’sfinancial
statementsandthecorrespondingtaxbasesusedinthecomputationoftaxableprofitandisaccountedforusingtheBalanceSheetmethod.Deferredtaxassetsaregenerallyrecognisedforalldeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditstotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthosedeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditscanbeutilised.ThecarryingamountofdeferredtaxassetsisreviewedateachBalanceSheetdateandreducedtotheextentthat it isnolongerprobablethatsufficienttaxableprofitswillbeavailableagainstwhichthetemporarydifferencescanbeutilised.
Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheperiodinwhichtheliabilityissettledortheassetrealised,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedbytheBalanceSheetdate.
Deferredtaxassetsandliabilitiesareoffsetifthereisalegallyenforceablerighttooffsetcurrenttaxliabilitiesandassets,andtheyrelatetoincometaxesleviedbythesametaxauthority.
2.18 Regulatory Deferral Account Balances Certainexpensesandincome,allowedunderCERCregulationstobereimbursedby/passedontobeneficiaries infuture,aretobe
accountedintheStatementofProfitandLossaspertheprovisionsofIndAS114‘RegulatoryDeferralAccounts’.Suchexpensesandincome,totheextentrecoverable/payableaspartoftariffunderCERCRegulationsaretreatedasRegulatoryDeferralAssets/Liabilities.
The Company presents separate line items in the Balance Sheet for: (a) thetotalofallRegulatoryDeferralAccountDebitBalances;and (b) the total of all Regulatory Deferral Account Credit Balances. AseparatelineitemispresentedintheprofitorlosssectionoftheStatementofProfitandLossforthenetmovementinallRegulatory
Deferral Account Balances for the reporting period. Regulatory deferral accounts balances are adjusted in the year in which the same become recoverable from or payable to the
beneficiaries.2.19 Revenue Revenueismeasuredbasedontheconsiderationspecifiedinacontractwithacustomerandexcludesamountscollectedonbehalfof
third parties. The Company recognizes revenue when it transfers control over a product or service to a customer. The Company has appliedIndAS115usingthecumulativeeffectmethodandthereforethecomparativeinformationhasnotbeenrestatedandcontinuestobereportedunderIndAS18andIndAS11.
In the comparative period, revenue was measured at the fair value of the consideration received or receivable. Amounts disclosed as revenuearenetofreturns,tradeallowances,rebates,GSTandvalueaddedtaxes.
Significant Financing Component Wheretheperiodbetweenthetransferofthepromisedgoodsorservicestothecustomerandpaymentbythecustomerexceedsone
year,theCompanyassessestheeffectsofsignificantfinancingcomponentinthecontract.Asaconsequence,theCompanymakesadjustmentinthetransactionpricesfortheeffectsoftimevalueofmoney.Nosuchadjustmenthasbeenmadeforthecomparativeperiod.
2.19.1 Revenue from Operations Transmission TransmissionIncomeisaccountedforbasedontariffordersnotifiedbytheCERC.Incaseoftransmissionprojectswherefinaltariff
ordersareyettobenotified,transmissionincomeisaccountedforonprovisionalbasisaspertariffregulationsandordersoftheCERCinsimilarcases.Difference,ifany,isaccountedonissuanceoffinaltariffordersbytheCERC.TransmissionIncomeinrespectofadditionalcapitalexpenditureincurredafterthedateofcommercialoperationisaccountedforbasedonexpenditureincurredonyeartoyearbasisasperCERCtariffregulations.Asateachreportingdate,transmissionincomeincludesanaccrualforservicesrenderedtothecustomersbutnotyetbilledi.e.UnbilledRevenue.
The Transmission system incentive / disincentive is accounted for based on certification of availability by the respective RegionalPowerCommittees(RPCs)andinaccordancewiththeCERCtariffregulations.WherecertificationbyRPCsisnotavailable,incentive/disincentiveisaccountedforonprovisionalbasisasperestimateofavailabilitybythecompanyanddifferences,ifanyisaccounteduponcertificationbyRPCs.
Advanceagainstdepreciation(AAD),formingpartoftariffpertaininguptotheblockperiod2004-09,tofacilitaterepaymentofloans,wasreducedfromtransmissionincomeandconsideredasdeferredincometobeincludedintransmissionincomeinsubsequentyears.The outstanding deferred income in respect of AAD is recognized as transmission income, after twelve years from the end of the financialyearinwhichtheassetwascommissioned,totheextentdepreciationrecoveredinthetariffduringtheyearislowerthandepreciation charged in the accounts.
Standalone Financial Statements
190
Telecom Services IncomefromTelecomServices,netofdowntimecredit,isrecognisedonthebasisoftermsofagreements/purchaseordersfromthe
customers.Upfrontfeereceivedinadvanceunder longtermcontractsprovidingIndefeasibleRighttoUse(IRU), isrecognisedasrevenue on the basis of estimation of revenue over the period of contract. In the comparative period, the same is recognized on a straight line basis.
Consultancy Services Inrespectof‘Cost-plus-consultancycontracts’,involvingexecutiononbehalfoftheclient,revenueisrecognizedinproportiontothe
stage of completion of the work performed at the reporting date, which is determined based on input method. Income from other consultancy contracts are accounted for on technical assessment of progress of services rendered. Inthecomparativeperiod,inrespectof‘Cost-plus-consultancycontracts’,involvingexecutiononbehalfoftheclient,incomeisaccounted
for (wherever initial advances received) in phased manner as under: a) 10%ontheissueofNoticeInvitingTenderforexecution b) 5%ontheAwardofContractsforexecution c) Balance85%onthebasisofactualprogressofworkincludingsupplies Income from other consultancy contracts are accounted for on technical assessment of progress of services rendered.2.19.2 Other Income Interestincomeisrecognized,whennosignificantuncertaintyastomeasurabilityorcollectabilityexists,onatimeproportionbasis
takingintoaccounttheamountoutstandingandtheapplicableinterestrate,usingtheeffectiveinterestratemethod(EIR). Surchargerecoverablefromtradereceivables,liquidateddamages,warrantyclaimsandinterestonadvancestosuppliersarerecognized
whennosignificantuncertaintyastomeasurabilityandcollectabilityexists. Application Fees towards Long Term Open Access (LTOA) as per CERC Guidelines is accounted for on receipt. Scrapotherthansteelscrap&conductorscrapareaccountedforasandwhensold. Dividend income is recognized when right to receive payment is established. Insuranceclaimsforlossofprofitareaccountedforintheyearofacceptance.Otherinsuranceclaimsareaccountedforbased
on certainty of realization. Revenue from rentals and operating leases is recognized on an accrual basis in accordance with the substance of the relevant agreement.2.20 Government Grants Grants-in-aidfromCentralGovernmentorotherauthoritiestowardscapitalexpenditureforprojects,bettermentoftransmissionsystems
andspecificdepreciableassetsinitiallyaretreatedasdeferredincomewhenthereisareasonableassurancethattheywillbereceivedandtheCompanywillcomplywiththeconditionsassociatedwiththegrant.DeferredIncomeisrecognizedintheStatementofProfitand Loss over the useful life of related asset in proportion to which depreciation on these assets is provided. Grants that compensate theCompanyforexpenses incurredarerecognizedovertheperiod inwhichtherelatedcostsare incurredanddeductedfromtherelatedexpenses.
2.21 Dividends Annual dividend distribution to the shareholders is recognised as a liability in the period in which the dividends are approved by the
shareholders.AnyinterimdividendpaidisrecognisedonapprovalbyBoardofDirectors.Dividendpayableandcorrespondingtaxondividenddistributionisrecogniseddirectlyinequity.
2.22 Provisions and Contingencies a) Provisions Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable
thatanoutflowof resourcesembodyingeconomicbenefitswillbe required tosettle theobligationanda reliableestimatecanbemadeoftheamountoftheobligation.Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscounted.UnwindingofthediscountisrecognisedintheStatementofProfitandLossasafinancecost.ProvisionsarereviewedateachBalanceSheetdateandareadjustedtoreflectthecurrentbestestimate.
b) Contingencies Contingentliabilitiesaredisclosedonthebasisofjudgmentofthemanagement/independentexperts.Thesearereviewedateach
balancesheetdateandareadjustedtoreflectthecurrentmanagementestimate. Contingentliabilitiesaredisclosedwhenthereisapossibleobligationarisingfrompastevents,theexistenceofwhichwillbeconfirmed
onlybytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontroloftheCompanyorapresentobligationthatarisesfrompasteventswhereitiseithernotprobablethatanoutflowofresourceswillberequiredtosettleor a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements. Contingent assets are not recognised.
2.23 Share capital and Other Equity Ordinarysharesareclassifiedasequity. Incrementalcostsdirectlyattributabletotheissueofnewsharesareshowninequityasadeduction,netoftax,fromtheproceeds. Self-insurancereserveiscreated@0.12%p.a.onGrossBlockofProperty,PlantandEquipmentexceptassetscoveredunderinsurance
191
asattheendoftheyearbyappropriationofcurrentyearprofittomitigatefuturelossesfromun-insuredrisksandfortakingcareof contingencies in future by procurement of towers and other transmission line materials including strengthening of towers and equipmentofACsubstation.TheReservecreatedasaboveisshownas“SelfInsuranceReserve”under‘OtherEquity’.
2.24 Prior Period Items Material prior period errors are corrected retrospectively by restating the comparative amounts for prior period presented in which the
erroroccurredoriftheerroroccurredbeforetheearliestperiodpresented,byrestatingtheopeningstatementoffinancialposition.2.25 Operating Segments TheBoardofDirectors istheCompany’s ‘ChiefOperatingDecisionMaker’or ‘CODM’withinthemeaningofIndAS108 ‘Operating
Segments’. CODM monitors the operating results of its business segments separately for the purpose of making decisions about resource allocationandperformanceassessment.Segmentperformanceisevaluatedbasedonprofitorlossandismeasuredconsistentlywithprofitorlossinthefinancialstatements.
Theoperatingsegmentshavebeenidentifiedonthebasisofthenatureofproducts/services. - Segment revenue includessalesandother incomedirectly identifiablewith/allocable to thesegment including inter-segment
transactions. - Expensesthataredirectlyidentifiablewith/allocabletosegmentsareconsideredfordeterminingthesegmentresult.Expenses
whichrelatetotheCompanyasawholeandnotallocabletosegmentsareincludedunderunallocableexpenditure. - IncomewhichrelatestotheCompanyasawholeandnotallocabletosegmentsisincludedinunallocableincome. - Segmentassetsand liabilities includethosedirectly identifiablewith therespectivesegments.Unallocableassetsand liabilities
represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment. - Segmentcapitalexpenditureisthetotalcostincurredduringtheperiodtoacquireproperty,plantandequipment,andintangible
assets.2.26 Earnings per Share Basicearningspershareiscomputedusingthenetprofitorlossfortheyearattributabletotheshareholdersandweightedaverage
number of shares outstanding during the year. Dilutedearningspershareiscomputedusingthenetprofitfortheyearattributabletotheshareholdersandweightedaveragenumber
ofequityandpotentialequitysharesoutstandingduringtheyear,exceptwheretheresultwouldbeanti-dilutive. Additionally,basicanddilutedearningspersharearecomputedusingtheearningsamountsexcludingthemovementsinRegulatory
Deferral Account Balances.2.27 Cash Flow Statement CashflowstatementispreparedasperindirectmethodprescribedintheIndAS7‘StatementofCashFlows’.3. Critical Estimates and Judgments Thepreparationoffinancialstatementsrequirestheuseofaccountingestimateswhichmaysignificantlyvaryfromtheactualresults.
Managementalsoneedstoexercisejudgmentwhileapplyingthecompany’saccountingpolicies. Thisnoteprovidesanoverviewoftheareasthatinvolvedahigherdegreeofjudgmentorcomplexity,andofitemswhicharemorelikely
tobemateriallyadjustedduetoestimatesandassumptionsturningouttobedifferentthanthoseoriginallyassessed. The areas involving critical estimates or judgments are: Revenue Recognition: TransmissionincomeisaccountedforbasedontariffordersnotifiedbytheCERC.Incaseoftransmissionprojectswherefinaltariff
ordersareyettobenotified,transmissionincomeisaccountedforaspertariffregulationsandotherordersoftheCERCinsimilarcases.Differences,ifany,areaccountedonissuanceoffinaltariffordersbytheCERC.TransmissionincomeinrespectofadditionalcapitalexpenditureincurredafterthedateofcommercialoperationisaccountedforbasedonexpenditureincurredonyeartoyearbasisasperCERCtariffregulations.
Regulatory Deferral Balances: RecognitionofRegulatoryDeferralBalances involvessignificant judgments includingabout future tariff regulationssince theseare
basedonestimationoftheamountsexpectedtoberecoverable/payablethroughtariffinfuture. Estimation of defined benefit obligation EstimationofdefinedbenefitobligationinvolvescertainsignificantactuarialassumptionswhicharelistedinNote66. Estimatesandjudgmentsareperiodicallyevaluated.Theyarebasedonhistoricalexperienceandotherfactors,includingexpectations
offutureeventsthatmayhaveafinancialimpactonthecompanyandthatarebelievedtobereasonableunderthecircumstances. Useful life of property, plant and equipment Theestimateduseful lifeofproperty,plantandequipment isbasedonanumberof factors includingtheeffectsofobsolescence,
demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level ofmaintenanceexpendituresrequiredtoobtaintheexpectedfuturecashflowsfromtheasset.
TheCompanyreviewesattheendofeachreportingdatetheusefullifeofplantandequipment,otherthantheassetsoftransmissionbusiness which are governed by CERC Regulations, and are adjusted prospectively, if appropriate.
Provisions and contingencies The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Ind AS 37 “Provisions,
ContingentLiabilitiesandContingentAssets”.Theevaluationofthelikelihoodofthecontingenteventshasrequiredbestjudgmentby management regarding the probability of exposure to potential loss. Should circumstances change following unforeseeabledevelopments, this likelihood could alter.
Standalone Financial Statements
192
Part
icul
ars
Cost
Accu
mul
ated
dep
reci
atio
nN
et B
ook
Valu
eAs
at 1
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April
, 201
8Ad
ditio
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As a
t 31st
M
arch
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9As
at 1
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18
Addi
tions
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ring
the
year
Dis
posa
lAd
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the
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As a
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19
As a
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9As
at 3
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Mar
ch, 2
018
Land
a) F
reeh
old
2,1
79.2
0 48.06
--
2,2
27.2
6 -
--
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2,2
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6 2
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ease
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132
.46
--
438
.18
31.
22
11.
53
--
42.
75
395
.43
274
.50
Build
ings
a)Sub-Stations&Office
1,281.79
218.06
-(1
0.19
) 1
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.04
103
.46
53.
74
-(0
.06)
157
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8 1,178.33
b) T
owns
hip
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Tem
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0.9
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--
1.0
2 0
.94
0.0
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- 0
.95
0.0
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.01
Roads&Bridges
163
.90
8.76
-(0
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172
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21.
99
7.1
6 -
- 2
9.15
1
43.5
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41.9
1 WaterSupplyDrainage&
Sew
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-(0
.36)
98.
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12.87
4.3
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- 1
7.19
8
1.21
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Plan
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45.
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(879.64)
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1,77
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6,4
42.1
6 17.83
(4.9
4)
21,2
62.2
1 1,
00,5
17.7
2 9
5,07
4.96
b)Sub-station
58,240.88
7,268.68
66.
25
(368.65)
65,
811.
96
7,5
37.7
9 3
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.27
33.88
(0.9
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11,0
96.1
2 5
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5.84
5
0,70
3.09
c)UnifiedLoadDespatch
&Communication
755.98
206
.62
-12
.57
950
.03
149
.96
56.
25
-2.28
203
.93
746
.10
606
.02
d) T
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om 1
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.15
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20
-(1
7.57
) 1
,117
.92
289.87
102
.63
-(8.57)
401
.07
716
.85
767.28
FurnitureFixtures
109
.52
21.
14
0.2
5 0
.07
130
.34
20.
50
8.54
0.0
6 0.
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8.96
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3 0.28
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2.9
0 1
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0.3
2 0
.16
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8 2
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Officeequipment
190
.20
18.84
0.3
7 (2
.26)
210
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27.
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13.
43
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3 (0
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21.
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1.5
9 (0.08)
75.
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34.
86
35.
23
Cons
truct
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and
Workshopequipment
286.30
13.
07
1.2
5 (0
.02)
298
.14
42.
33
17.58
0.6
4 (0
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59.
64
238
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243
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Elec
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92.
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--
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5.83
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23.
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LaboratoryEquipments
45.
46
2.4
4 0
.40
- 4
7.50
9
.53
3.0
2 0
.03
- 1
2.52
3
4.98
3
5.93
Workshop&Testing
Equipments
155.78
79.
50
0.1
4 1.68
233
.46
14.
95
10.78
0.0
3 -
25.
70
207
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140.83
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Equipments
0.0
4 0
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Tot
al 1
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(13.
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9
Not
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Part
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Accu
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year
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As a
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Land
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2,0
62.5
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57.98
45.
66
-0.18
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811.91
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514
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--
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75
451
.19
400
.05
Tem
pora
ry E
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- 1
63.9
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7 5,825.59
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56 12,218.94
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(115
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58,240.884,483.08
3,0
61.9
6 1
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9 5
0,70
3.09
41,477.48
c)UnifiedLoadDespatch
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605
.42
137
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-(1
2.59
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51.
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-(7
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725.87
FurnitureFixtures
98.08
11.
93
0.4
4 0.
05 1
09.5
2 1
2.53
8.07
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4 0
.59
--
3.3
3 0
.66
0.4
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- 1
.11
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2 2.08
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132
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96.
52
0.4
3 38.48
190
.20
15.
34
11.
60
0.2
6 (0
.49)
27.
17
163
.03
117
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35.
99
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0.28
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6.24
3
5.23
38.30
Cons
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248.31
38.37
0.38
-286.30
26.
05
16.
50
0.2
2 -
42.
33
243
.97
222
.26
Elec
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82.34
7.2
3 -
(3.2
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2.79
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1.59
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17.58
75.
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70.
75
LaboratoryEquipments
41.
74
3.83
0.1
1 -
45.
46
6.4
5 3.08
--
9.5
3 3
5.93
3
5.29
Workshop&Testing
Equipments
120
.31
35.
67
0.2
0 -
155.78
7.5
6 7
.54
0.1
7 (0
.02)
14.
95
140.83
112
.75
MiscellaneousAssets/
Equipments
0.0
5 -
0.0
1 -
0.0
4 -
0.0
1 -
- 0
.01
0.0
3 0
.05
Tota
l 1
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320.
46 2
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1
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6 7
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ss: P
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1.7
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otal
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89 1
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252.
57
Standalone Financial Statements
194
4. Property, Plant and Equipment (Contd.)Further Notes:a) The Company owns 7251 hectare (Previous Year 7232 hectare) of land amounting to `2665.44 Crore (Previous Year `2484.92Crore)which
hasbeenclassifiedintofreeholdland6211hectare(PreviousYear6197hectare)amountingto`2227.26 Crore (Previous Year `2179.20 Crore) and leasehold land 1040 hectare (Previous Year 1035 hectare) amounting to `438.18Crore(PreviousYear`305.72 Crore) based on available documentation.
b) Freeholdlandacquiredbythecompanyincludes188.50hectare(PreviousYear268.50hectare)amountingto`144.27 Crore (Previous Year `230.05Crore)inrespectofwhichconveyancedeedinfavourofthecompanyispendingand118.60hectare(PreviousYear289.81hectare) amounting to `60.50 Crore (Previous Year `224.78Crore) in respectof landacquiredby thecompany forwhichmutation inrevenue records is pending.
c)i) The landclassifiedas leasehold landheld inthestateofJammuandKashmirwithareaof113.88hectare(PreviousYear113.88hectare) amounting to `83.90Crore(PreviousYear`80.46Crore)isacquiredbystategovernmentasperproceduresunderStateLandAcquisitionAct.Asperprevailinglawthestategovernmentremainstheownerofthelandsoacquiredandcompanyisonlygivenpossessionforthespecificuse.
ii) The transmission system situated in the state of Jammu and Kashmir have been taken over by the company w.e.f. 1st April 1993 from National Hydroelectric Power Corporation of India Limited (NHPC) upon mutually agreed terms pending completion of legal formalities.
iii) Leasehold land includes area of 2.65 hectare (Previous Year 2.65 hectare) amounting to `13.97 Crore (Previous Year `13.97 Crore) in respectoflandinChamba(HP)acquiredfromNHPCbythecompanyforwhichlegalformalitiesarepending.
iv) Leasehold land other than above includes 133.91 hectare (Previous Year 130.60 hectare) amounting to `186.11Crore(PreviousYear`55.86Crore)inrespectofwhichleaseagreements/legalformalitiesarepending.
d) Leasehold land includes area of 0.41 hectare (Previous Year 0.41 hectare) amounting to `7.64 Crore (Previous Year `7.64 Crore) in respect oflandacquiredforofficecomplexonperpetualleasebasisandhencenotamortised.
e) Township building includes `2.95 Crore (Previous Year `2.95Crore)for28flatsatMumbai,forwhichregistrationinfavourofthecompanyispending.Outoftheaboveflats,17flatsareoccupiedbyemployeesofM/SPowerSystemOperationCorporationLtd.
f) 5.63 hectare of land (Previous Year 5.63 hectare) having value of `0.04 Crore (Previous Year `0.04 Crore) has been transferred to National High Power Test Laboratory Pvt. Ltd. on right to use without granting ownership.
g) Refernote23forinformationonproperty,plantandequipment,pledgedassecuritybythecompany.
195
Land Developmentofland 10.76 0.39 - 4.71 6.44 Buildings a)Sub-Stations&Office 151.65 89.18 - 142.68 98.15 b)Township 97.00 88.24 - 69.51 115.73
Roads&Bridges 18.66 5.24 - 5.63 18.27 WaterSupplyDrainageandSewerage 3.22 0.32 - - 3.54 Plant & Equipments (including associated civil works)a)Transmission 11,851.80 7,293.42 - 9,547.28 9,597.94 b)Sub-Station 7,000.35 9,637.03 (0.01) 6,772.92 9,864.47 c)UnifiedLoadDespatch&Communication 464.29 228.66 20.93 193.68 478.34 d)Telecom 46.90 52.18 - 23.76 75.32
Furniture&Fixtures - 0.57 - 0.57 - Otherofficeequipments 8.88 7.73 - 6.78 9.83 ElectricalInstallations 0.93 11.72 - 9.21 3.44 ConstructionStores(NetofProvision) 7,589.19 2,872.97 - - 10,462.16 Expenditure pending allocation i)Survey,investigation,consultancy& 32.95 - 8.42 18.10 6.43 supervision Chargesii)DifferenceinExchangeonforeigncurrencyloans 187.89 (14.97) - 45.59 127.33 iii)Expenditureduringconstruction 2,798.96 1,653.67 4.86 1,948.88 2,498.89 period(net) (Note 43)
30,263.43 21,926.35 34.20 18,789.30 33,366.28 Less:ProvisionforunserviceableAssets 2.26 - - - 2.26 Grand Total 30,261.17 21,926.35 34.20 18,789.30 33,364.02
Land Developmentofland 25.16 60.84 - 75.24 10.76Buildings a)Sub-Stations&Office 386.96 127.09 362.40 151.65b)Township 67.59 64.83 - 35.42 97.00
Roads&Bridges 20.46 7.60 - 9.40 18.66WaterSupplyDrainageandSewerage 3.06 0.16 - - 3.22Plant & Equipments (including associated civil works) a)Transmission 15,449.54 9,128.01 0.26 12,725.49 11,851.80b)Sub-Station 8,257.71 9,576.85 0.37 10,833.84 7,000.35c)UnifiedLoadDespatch&Communication 375.00 233.37 6.11 137.97 464.29d)Telecom 66.99 69.86 - 89.95 46.90
Otherofficeequipments 6.49 4.25 - 1.86 8.88ElectricalInstallations 0.55 1.77 - 1.39 0.93ConstructionStores(NetofProvision) 7,664.18 - 74.99 - 7,589.19Expenditure pending allocation i)Survey,investigation,consultancy& 23.18 14.40 - 4.63 32.95 supervision Chargesii)DifferenceinExchangeonforeigncurrencyloans 69.49 170.00 - 51.60 187.89iii)Expenditureduringconstructionperiod(net) 3,394.08 2,207.39 0.57 2,801.94 2,798.96 (Note 43)
35,810.44 21,666.42 82.30 27,131.13 30,263.43 Less:ProvisionforunserviceableAssets 3.64 - 1.38 - 2.26Grand Total 35,806.80 21,666.42 80.92 27,131.13 30,261.17
Particulars As at 1st April, 2018
Additions during the year
Adjustments Capitalised during the year
As at 31st March, 2019
Particulars As at 1st April, 2017
Additions during the year
Adjustments Capitalised during the year
As at 31st March, 2018
Note 5/Capital work in progress(` in Crore)
(` in Crore)
Standalone Financial Statements
196
Construction Stores
Towers 1169.06 1442.08
Conductors 2566.47 2364.57
Other Line Materials 489.92 547.97
Sub-StationEquipments 2333.70 1982.03
HighVoltageDirectCurrent(HVDC)Equipments 3473.09 704.51
UnifiedLoadDespatch&Communication(ULDC)Materials 219.08 387.36
Telecom Materials 52.29 37.54
Others 158.55 123.13
10462.16 7589.19
Less:Provisionforshortagesandobsoletematerial - -
Total 10462.16 7589.19
Construction Stores include:
i) Material in transit
Towers 0.35 3.84
Other Line Materials 18.18 12.38
Sub-StationEquipments 155.15 158.41
HighVoltageDirectCurrent(HVDC)Equipments 723.53 45.22
Others 2.22 2.35
Total 899.43 222.20
ii) Material with Contractors
Towers 1168.71 1438.24
Conductors 2566.47 2364.56
Other Line Materials 471.73 535.60
Sub-StationEquipments 2178.56 1823.62
HighVoltageDirectCurrent(HVDC)Equipments 2749.55 659.29
UnifiedLoadDespatch&Communication(ULDC)Materials 219.08 387.36
Telecom Materials 52.29 37.54
Others 156.34 120.78
Total 9562.73 7366.99
Grand total 10462.16 7589.19
Further Notes:
Materials with Contractors amounting to 334.62 crore (Previous Year 488.14crore)inrespectofcommissionedlinesispendingforreconciliation.However reconciliation are carried out on ongoing basis.
Note 5/Capital work in progress (Contd.) (Details of Construction stores) (At cost)
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
197
Part
icul
ars
Cost
Accu
mul
ated
Am
ortis
atio
nN
et B
ook
Valu
eAs
at 1
st
April
, 201
8Ad
ditio
ns
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ar
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t 31st
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arch
, 201
9As
at 1
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, 20
18
Addi
tions
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ring
the
year
Dis
posa
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just
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t du
ring
the
year
As a
t 31st
M
arch
, 20
19
As a
t 31st
M
arch
, 201
9As
at 3
1st
Mar
ch, 2
018
Land
(Fre
ehol
d) 0
.02
--
- 0
.02
--
--
- 0.
02
0.02
Bu
ildin
gs 0
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--
- 0
.01
--
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0.01
0.
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- 0.
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- -
- 0.
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Not
e 6/
Inve
stm
ent P
rope
rty
(` in
Cro
re)
Part
icul
ars
Cost
Accu
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ated
Am
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nN
et B
ook
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at 1
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April
, 201
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e ye
ar
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year
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t 31st
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arch
, 20
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t 1st
Apri
l, 20
17
Addi
tions
du
ring
the
year
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posa
lAd
just
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t du
ring
the
year
As a
t 31st
M
arch
, 20
18
As a
t 31st
M
arch
, 201
8As
at 3
1st
Mar
ch,
2017
Land
(Fre
ehol
d) 0
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--
- 0
.02
--
--
-0.
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0.02
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ildin
gs 0
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--
- 0
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--
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01
0.01
Tota
l0.
03
- -
- 0.
03
- -
- -
- 0.
03
0.03
(` in
Cro
re)
Standalone Financial Statements
198
For the year ended 31st March, 2019
For the year ended 31stMarch,2018
Rental income - 0.80Directoperatingexpensesfrompropertythatgeneratedrentalincome - -Directoperatingexpensesfrompropertythatdidnotgeneraterentalincome - -Profitfrominvestmentpropertybeforedepreciation - 0.80Depreciation - -Profit from investment property - 0.80
(` in Crore)
(` in Crore)
(` in Crore)
(` in Crore)
Note 6/Investment Property (Contd.)Futher Notes :
(i) Amount recognised in profit and loss for investment property
(ii) Contractual obligations
(iii) Leasing arrangements
Minimumleasepaymentsreceivableundernon-cancellableoperatingleasesofinvestmentpropertyareasfollows:-
* Lease agreement ended with mutual consent during the year w.e.f 15thMarch2018andnonewleaseagreementhasbeenentered.
(iv) Fair value
Estimation of fair value
The fair values of investment property has been determined by independent valuer. The main inputs used are the rental growth rates, expectedvacancyrates,terminalyieldsanddiscountratesbasedoncomparabletransactionsandindustrydata.Allresultingfairvalueestimates for investment property are included in level 2.
31st March, 2019 31stMarch,2018Contractual obligation for future repairs and maintenance not recognised as a liability NIL 0.80
31st March, 2019 31stMarch,2018*Withinoneyear - -Later than one year but not later than 5 years - -Later than 5 years - -
31st March, 2019 31stMarch,2018Investment property 2.83 2.98
199
Part
icul
ars
Cost
Accu
mul
ated
Am
ortis
atio
nN
et B
ook
Valu
eAs
at 1
st
April
, 201
8Ad
ditio
ns
durin
g th
e ye
ar
Dis
posa
lAd
just
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t du
ring
the
year
As a
t 31st
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arch
, 201
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at 1
st
April
, 20
18
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tions
du
ring
the
year
Dis
posa
lAd
just
men
t du
ring
the
year
As a
t 31st
M
arch
, 20
19
As a
t 31st
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arch
, 201
9As
at 3
1st
Mar
ch, 2
018
Elec
troni
c Da
ta
Proc
essin
g So
ftwar
e 4
6.97
7
.77
-(0
.12)
54.
86
42.
17
4.81
-(0
.12)
47.
10
7.76
4.80
RightofW
ay-
AfforestationExpenses
1502.81
275.
13-
(51.
61)
1829
.55
200.38
97.9
7-
-29
8.35
1531
.20
1302
.43
Tele
com
Lice
nses
2.80
--
- 2
.80
0.1
3 0
.14
--
0.2
7 2.
532.
67De
velo
pmen
t of 1
200
KV T
S* 6
9.57
2
.29
--
71.
86
13.
01
7.2
4 -
- 2
0.25
51
.61
56.5
6
Tota
l 1
,622
.15
285
.19
- (5
1.73
) 1
,959
.07
255
.69
110
.16
- (0
.12)
365
.97
1,5
93.1
0 1
,366
.46
*Int
erna
lly g
ener
ated
inta
ngib
le a
sset
Part
icul
ars
Cost
Accu
mul
ated
Am
ortis
atio
nN
et B
ook
Valu
eAs
at 1
st
April
, 201
7Ad
ditio
ns
durin
g th
e ye
ar
Dis
posa
lAd
just
men
t du
ring
the
year
As a
t 31st
M
arch
, 201
8As
at 1
st
April
, 20
17
Addi
tions
du
ring
the
year
Dis
posa
lAd
just
men
t du
ring
the
year
As a
t 31st
M
arch
, 20
18
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t 31st
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arch
, 201
8As
at 3
1st
Mar
ch, 2
017
Elec
troni
c Da
ta
Proc
essin
g So
ftwar
e 4
2.21
4
.67
-(0
.09)
46.
97
30.
21
11.
96
--
42.
17
4.80
12.
00
RightofW
ay-
AfforestationExpenses
1,2
97.3
4 2
11.3
2 -
5.85
1,502.81
118.44
81.94
--
200.38
1,3
02.4
3 1,178.90
Tele
com
Lice
nses
2.5
0 2.80
2.5
0 -
2.80
1.3
7 0
.13
1.3
7 -
0.1
3 2
.67
1.1
3 De
velo
pmen
t of 1
200
KV T
S* 6
9.41
-
-(0
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69.
57
6.0
5 6
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--
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56.
56
63.
36
Tota
l 1
,411
.46
218
.79
2.5
0 5.
60 1
,622
.15
156
.07
100
.99
1.3
7 -
255
.69
1,3
66.4
6 1
,255
.39
*Int
erna
lly g
ener
ated
inta
ngib
le a
sset
Not
e 7/
Oth
er I
ntan
gibl
e as
sets
(`
in C
rore
)
( ` in
Cro
re)
Standalone Financial Statements
200
ElectronicDataProcessingSoftware - 4.47 - 4.47 -RightofWay-Afforestationexpenses 45.95 328.17 - 160.06 214.06 Developmentof1200KVTS - 5.68 3.39 2.29 -Total 45.95 338.32 3.39 166.82 214.06
ElectronicDataProcessingSoftware 0.07 1.77 - 1.84 -RightofWay-Afforestationexpenses 61.38 71.99 - 87.42 45.95Developmentof1200KVTS 15.88 - 15.88 - -Total 77.33 73.76 15.88 89.26 45.95
Particulars As at 1st April, 2018
Additions Adjustments Capitalised during the year
As at 31st March, 2019
Particulars As at 1st April, 2017
Additions Adjustments Capitalised during the year
As at 31st March, 2018
Note 8/Intangible assets under development(` in Crore)
(` in Crore)
Investments in Equity Instruments (Fully paid up) Investments at Fair Value through Other Comprehensive Income (OCI)
Quoted PTC India Limited 12000006(PreviousYear12000006)EquitySharesof`10/-each 88.14 104.88
Unquoted EnergyEfficiencyServicesLimited 37704350(PreviousYear22500000)EquitySharesof`10/-each 41.70 23.90
Investments at Cost (Fully paid up) Unquoted i) Subsidiary Companies Powergrid NM Transmission Limited 264000000(PreviousYear212000000)EquitySharesof`10 each. 264.00 212.00 Powergrid Vemagiri Transmission Limited 50000(PreviousYear50000)EquitySharesof`10 each. 0.05 0.05 Less: Provision for diminution in the value of Investment 0.05 0.05 - - Powergrid Vizag Transmission Limited 209730000(PreviousYear209730000)EquitySharesof`10 each. 209.73 209.73 PowergridUnchaharTransmissionLimited 12961067(PreviousYear12961067)EquitySharesof`10 each. 12.96 12.96 Powergrid Kala Amb Transmission Limited 61000000(PreviousYear56000000)EquitySharesof`10 each. 61.00 56.00 POWERGRID-JabalpurTransmissionLimited 173150000(PreviousYear150000)EquitySharesof`10 each. 173.15 0.15 POWERGRIDWaroraTransmissionLimited 326300000(PreviousYear176300000)EquitySharesof`10 each. 326.30 176.30 POWERGRIDParliTransmissionLimited 228500000(PreviousYear100000)EquitySharesof`10 each. 228.50 0.10
Note 9/InvestmentsParticulars As at 31st
March, 2019As at 31st
March, 2018
(` in Crore)
201
Particulars As at 31st March, 2019
As at 31st March, 2018
POWERGRIDSouthernInterconnectorTransmissionSystemLimited 515504000(PreviousYear50000)EquitySharesof`10 each. 515.50 0.05 Powergrid Medinipur Jeerat Transmission Limited 10000(PreviousYear10000)EquitySharesof`10 each. 0.01 0.01 Powergrid Mithilanchal Transmission Limited 50000(PreviousYear50000)EquitySharesof`10 each. 0.05 0.05 POWERGRIDVaranasiTransmissionSystemLimited 50000(PreviousYear50000)EquitySharesof`10 each. 0.05 0.05 POWERGRIDJawaharpurFirozabadTransmissionLimited 50000(PreviousYearNIL)EquitySharesof`10 each. 0.05 - 1791.30 667.40ii) Joint Venture Companies Torrent Power Grid Limited 23400000(PreviousYear23400000)EquitySharesof`10/-each. 23.40 23.40 Jaypee Powergrid Limited 78000000(PreviousYear78000000)EquitySharesof`10/-each. 78.00 78.00 Parbati Koldam Transmission Company Limited 70937620(PreviousYear70937620)EquitySharesof`10/-each. 70.94 70.94 Teestavalley Power Transmission Limited 105560000(PreviousYear94277820)EquitySharesof`10/-each. 105.56 94.28 Powerlinks Transmission Limited 229320000(PreviousYear229320000)EquitySharesof`10/-each. 229.32 229.32 North East Transmission Company Limited 106964000(PreviousYear106964000)EquitySharesof`10/-each. 106.96 106.96 National High Power Test Laboratory Private Limited 30400000(PreviousYear30400000)EquitySharesof`10/-each. 30.40 30.40 Cross Border Power Transmission Company Limited 12612473(PreviousYear12612473)EquitySharesof`10/-each. 12.62 12.62 Kalinga Bidyut Prasaran Nigam Private Limited 5000(PreviousYear5000)EquitySharesof`10/-each.(Referfurthernote4below) 0.01 0.01 Less: Provision for diminution in the value of Investment 0.01 0.01 - - Bihar Grid Company Limited 171685600(PreviousYear156240000)EquitySharesof`10/-each. 171.69 156.24 Power Transmission Company Nepal Limited 1170000(PreviousYear1040000)EquitySharesofNepali`100/-each. 6.50 6.50 RINLPOWERGRIDTLTPrivateLimited 4000000(PreviousYear3400000)EquitySharesof`10/-each.(Referfurthernote5below) 4.00 3.40 Less: Provision for diminution in the value of Investment 4.00 - - 3.40 835.39 812.06iii) Others NIL(PreviousYear500)EquitySharesof`10/-eachinEmployeesCo-opSociety Limited Rourkela (Previous Year `5000/-) 1 (Previous Year 1) share of `10/-eachinBharatBroadbandNetworkLimited(`10/-) Total 2756.53 1608.24Further notes: 1) a)AggregateamountofQuotedInvestments
At Cost 12.00 12.00 Market Value 88.14 104.88
b)AggregateamountofUnquotedInvestments 2668.39 1503.36 c) Aggregate amount of impairment in value of Investment 4.06 0.06
2) 229319997EquityShares(PreviousYear229319997EquityShares)ofPowerlinksTransmissionLimitedheldbytheCompanyhavebeenpledgedassecuritywithconsortiumoffinancialinstitutionsagainstfinancialassistanceobtainedbyPowerlinksTransmissionLimited.
3) Investmentshavebeenvaluedasperaccountingpolicyno.2.13,2.14&2.15. 4) POWERGRID’sBoardofDirectors in itsmeetingheldon16thAugust,2017accordedapproval for initiatingprocedureforwindingup/
removalofthenameofKalingaBidyutPrasaranNigamPrivateLtdunderfasttrackExitmodeofRegistrarofCompanies(ROC).Provisionfor diminution in the value of Investment of ` 0.01 crore had been made in the previous year.
5) POWERGRID’sBoardofDirectorsinitsmeetingheldon1stMay,2018accordedinprincipleapprovalforwindingupofRINLPowergridTLT Private Limited and to seek consent of other JV Partner Rashtriya Ispat Nigam Limited. Accordingly Provision for diminution in value of investment has been made.
6) Refer remarks at Note No 11 for Powergrid Vemagiri Transmission Limited.
Note 9/Investments (Contd.) (` in Crore)
(` in Crore)
Standalone Financial Statements
202
Particulars As at 31st March, 2019
As at 31st March, 2018
Loans to Related Parties **LoanstoSubsidiaries-Unsecured 10520.86 8113.13LoanstoJVs-Unsecured 6.00 -LoantoDirectors&KeyManagerialPersonnel(KMP)
Secured# 0.01 -Unsecured 0.09 0.07
10526.96 8113.20Loans to Employees (including interest accrued)
Secured# 143.15 111.02Unsecured 38.88 28.90
182.03 139.92Total 10708.99 8253.12
Note 10/Loans (considered good unless otherwise stated)
Note 11/Other Non-current Financial Assets
(` in Crore)
(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
Lease receivables 589.82 602.88UnbilledRevenue$i) Considered good 307.33 77.62ii) Considered doubtful 105.71 -
413.04 77.62Less: Provision 105.71 -
307.33 77.62Bankdepositswithmorethan12monthsmaturity# 163.47 185.85RecoverableforGOIfullyservicedbonds## 3487.75 -Advances to related parties (Subsidiaries and Others)*i) Considered good - -ii) Considered doubtful** 19.40 19.39
19.40 19.39Less: Provision for Doubtful advances** 19.40 19.39
- -Total 4548.37 866.35
Further notes:**DetailsofloanstorelatedpartiesisprovidedinNote58. #HousebuildingloansandconveyanceadvancetoDirectors,KMPandEmployeesaresecuredagainstthemortgageofthehousepropertiesorhypothecation of vehicles for which such loans have been given in line with the policies of the Company.
(Unsecuredconsideredgoodunlessotherwisestated)
Further notes: $ReferNote46fordisclosureasperIndAS115‘RevenuefromContractswithCustomers’. #Bankdepositsagainstdesignatedaccountsforconsultancywork. ##TheCompanyissued‘GoIfullyservicedbonds’foranamountof`3487.50croreforraisingofExtraBudgetaryResources(EBR)forGoIschemeofPowerSystemDevelopmentFund(PSDF)intermsofletterNo:7/1/2018-OMdated21st January, 2019 of Ministry of Power, Govt. of India (GoI) for meeting accrued liabilities for creation of Capital Assets. The repayment of principal and the interest payment on such bonds shall be met by GoI. Out of the proceeds of bond issue, an amount of `3424.63 Crore has been recognised as Grant in aid and balance of ` 62.87crorependingutilizationhasbeenshowninNoteNo15. *DetailsofadvancestorelatedpartiesareprovidedinNote58. **CERCvideorderdated06/04/2015 inpetitionno.127/2012haddirected that80%of theacquisitionprice incurredby theCompany forVemagiri TransmissionCompanyLimited (VTSL) shall be reimbursedby the LongTermTransmissionCustomers (LTTCs)andbalance20%alongwiththeexpenditureincurredbyVTSLfromthedateofacquisitiontilltheliquidationofthecompanyshallbebornebytheCompany.Subsequently,onareviewpetitionfiledbytheCompany,CERCvideorderdated20/10/2016heldthattherearesufficientreasonstoreviewtheliabilityoftheCompanytopay20%oftheacquisitionpriceandaccordingly,directedthattheissueshallbedecidedafreshbytakingaholisticviewinthematterafterdisposalofappealsfiledbytheLTTCsontheissueinAppellateTribunalofElectricity(ATE).ThematterisstillpendingbeforeATE/CERC.
203
Advances for Capital Expenditure Unsecured a. Against bank guarantees 1025.02 2633.90 b. Others 31.96 36.96Unsecuredconsidereddoubtful 1.25 1.67
1058.23 2672.53Less:Provisionforbad&doubtfulAdvances 1.25 1.67
1056.98 2670.86Advances other than for Capital Expenditure
Security Deposits 15.08 8.91Advances to Related Parties* - 0.43Deferred Employee Cost 52.66 50.59Deferred Foreign currency Fluctuation Asset 3675.22 2734.16Advances recoverable in kind or for value to be received
Employees 6.76 -Balance with Customs Port Trust and other authorities 26.64 20.53AdvancetaxandTaxdeductedatsource# 77.36 -Others** 154.74 160.03 265.50 180.56Considered doubtful 2.90 2.90 268.40 183.46Less: Provision for doubtful Advances 2.90 2.90
265.50 180.56Total 5065.44 5645.51 Further notes: *DetailsofadvancestorelatedpartiesareprovidedinNote58. **OthersincludeamountrecoverablefromCustomers&StateGovernments,insuranceclaimsetc. #NetofCurrentTaxLiabilities-Note33.
(For mode of valuation refer Note 2.10)
Components,Spares&otherspareparts 1216.47 1047.03
Loose tools 20.02 21.58
Consumable stores 12.50 8.15
1248.99 1076.76
LessProvisionforShortages/damagesetc. 22.71 38.31
Total 1226.28 1038.45
Inventories includes material in transit
Components,Spares&otherspareparts 10.34 3.75
Note 12/Other non-current Assets(Unsecuredconsideredgoodunlessotherwisestated)
Note 13/Inventories
Particulars As at 31st March, 2019 As at 31st March, 2018
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
(` in Crore)
Standalone Financial Statements
204
Trade receivables - Unsecured Considered good 4557.56 3574.09Considered Doubtful 337.48 48.15
4895.04 3622.24Receivablefromrelatedparties-Unsecured*
Considered good 71.18 64.87 4966.22 3687.11Less: Provision for doubtful trade receivables 337.48 48.15Total 4628.74 3638.96
Further notes: *DetailsoftradereceivablesfromrelatedpartiesareprovidedinNote58. Refer Note 46 for disclosure as per Ind AS 115 ‘Revenue from Contracts with Customers’.
Note 14/Trade receivables
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
Balance with banks- - InCurrentaccounts 142.33 118.99- IndesignatedCurrentaccounts(ForConsultancyclientsandothers) 205.61 360.19In term deposits (with maturity less than 3 months)* 3265.40 1013.73Drafts/Chequesinhand/Remittancesintransit 29.79 23.30Others (Stamps and Imprest) 0.01 -Total 3643.14 1516.21
Further notes: *Term deposit includes ` 3265.40 crore (Previous Year ` 1013.73 crore) for Consultancy clients and others.
Note 15/Cash and Cash Equivalents
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
Earmarked balance with banks* 20.18 12.61In Term Deposits having maturity over 3 months but upto 12 months 668.72 641.61 (For Consultancy clients and others)Total 688.90 654.22 Further notes: *Earmarked balance with Bank includes unpaid dividend and refund of FPO proceeds
Note 16/ Bank Balances other than Cash & Cash Equivalents
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
205
Loans to Related Parties** LoanstoSubsidiaries-Unsecured 285.88 -LoanstoJointVenture-Unsecured 77.12 6.00 LoantoDirectors&KeyManagerialPersonnel(KMP)
Secured# - - UnsecuredConsideredgood 0.08 0.04 363.08 6.04 Loans to Employees (including interest accrued)
Secured# 23.60 21.63 UnsecuredConsideredgood 30.19 19.21
53.79 40.84Total 416.87 46.88 Further notes: **DetailsofloanstorelatedpartiesisprovidedinNoteNo58. #HousebuildingloansandconveyanceadvancetoDirectors,KMPandEmployeesaresecuredagainstthemortgageofthehousepropertiesorhypothecation of vehicles for which such loans have been given in line with the policies of the Company.
Note 17/Loans
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
Lease Receivables 46.33 43.48UnbilledRevenue* 6154.31 4009.77Interest accrued but not due
Interest accrued on Investments (Bonds) - 0.42InterestaccruedonTerm/FixedDeposits 2.62 2.23Interest accrued on Loan to Subsidiaries 106.90 168.17Interest accrued on Loan to JVs 1.62 -Interest accrued on Others ** 38.57 4.05
149.71 174.87AdvancestoRelatedParties# 33.87 5.99Others##
Considered Good 468.98 635.81Total 6853.20 4869.92
Further notes: *UnbilledrevenueincludestransmissionchargesforthemonthofMarchinthefinancialyearamountingto` 2471.43 crore (Previous Year `2245.81crore)billedtobeneficiariesinthemonthofAprilofsubsequentfinancialyear.Furtherrefernoteno46fordisclosureasperIndAS 115 ‘Revenue from Contracts with Customers’. ** Interest accrued on Others includes accrued interest on recoverable for GOI fully serviced bonds, advance to contractors. #DetailsofadvancestorelatedpartiesareprovidedinNote58. ## Othersinclude:-
(a) an amount of `30.85crorerecoverablefromM/sDelhiTranscoLimitedtowardstransferof1.167hectarelandatTughlaqabadSub-station pending completion of legal formalities for transfer of title.
(b) amountrecoverablefromCustomers,AdvancerentforResidentialandOfficeaccommodation,AdvancetoPFTrustandGratuityTrust,Other advance etc.
Note18/Other Current Financial Assets(Unsecuredconsideredgoodunlessotherwisestated)
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
Standalone Financial Statements
206
Advances other than for Capital Expenditure Advances recoverable in kind or for value to be received Contractors&Suppliers 14.22 91.85Employees 15.18 6.20 Balance with Customs Port Trust and other authorities 122.38 221.19 Claims recoverable 0.54 0.54 152.32 319.78
Advances to related parties # Subsidiaries and JVs 86.40 153.52
Others* Considered Good 176.46 62.26 Considered Doubtful 0.01 0.03
176.47 62.29 Less: Provision for Doubtful Advances 0.01 0.03
176.46 62.26 Total 415.18 535.56 Further notes: #DetailsofadvancestorelatedpartiesareprovidedinNote58. *OthersincludeadvancegivenforCSRactivities,prepaidexpensesandinputtaxcredit-GST.
Note 19/Other Current Assets
Particulars As at 31st March, 2019 As at 31st March, 2018
(Unsecuredconsideredgoodunlessotherwisestated) (` in Crore)
Assets Deferredassetsfordeferredtaxliability* 7516.50 10989.39Foreign Currency Fluctuation 432.61 200.34EmployeeBenefitsExpense 134.16 114.49
Total 8083.27 11304.22
Further Note: *Refertonoteno54forreclassificationofprioryearpresentation. Refer to note no 53 for detailed disclosure on Regulatory Deferral Account Balances.
Equity Share Capital
Authorised
10,00,00,00,000(PreviousYear10,00,00,00,000)equitysharesof`10/- 10000.00 10000.00 each at par
Issued, subscribed and paid up
5,23,15,89,648(PreviousYear5,23,15,89,648)equitysharesof`10/-eachat 5231.59 5231.59 par fully paid up
Note 20/Regulatory Deferral Account Balances
Note 21/Equity Share capital
Particulars As at 31st March, 2019 As at 31st March, 2018
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
(` in Crore)
207
Shares outstanding at the beginning of the year 5231589648 5231.59 5231589648 5231.59Additionsduringtheyear - - - -Deductionduringtheyear - - - -Shares outstanding at the end of the year 5231589648 5231.59 5231589648 5231.592) TheCompanyhasonlyoneclassofequityshareshavingaparvalueof`10/-pershare. 3) Theholdersofequitysharesareentitledtoreceivedividendsasdeclaredfromtimetotimeandtovotingrightsproportionatetotheir
shareholding at meetings of the Shareholders. 4) Shareholdersholdingmorethan5%equitysharesoftheCompany
Note 21/Equity Share capital (Contd.)
ParticularsFor the year ended 31st March, 2019 For the year ended 31st March, 2018
No. of Shares Amount (` in crore) No. of Shares Amount (` in crore)
ParticularsAs at 31st March, 2019 As at 31st March, 2018
No. of Shares % of holding No. of Shares % of holdingGovernment of India 2896495942 55.37 2977314759 56.91Life Insurance Corporation of India 335385684 6.41 254719223 4.87
Reserves and Surplus Securities Premium 9578.29 9578.29Bonds Redemption Reserve 9884.80 9158.59Self Insurance Reserve 882.18 735.03 Corporate Social Responsibility (CSR) Activity Reserve 114.54 123.33 General Reserve 31376.63 26911.55 Retained Earnings 1872.42 2585.74
Other Reserves Other Comprehensive Income Reserve 76.69 90.84
Total 53785.55 49183.37
Balance at the beginning of the year 9578.29 9578.29Additionduringtheyear - -Deductionduringtheyear - -Balance at the end of the year 9578.29 9578.29 Securitiespremiumisusedtorecordthepremiumonissueofshares/securities.ThisamountisutilisedinaccordancewiththeprovisionoftheCompanies Act, 2013.
Balance at the beginning of the year 9158.59 8095.09Addition during the year 2029.20 2075.83Deduction during the year 1302.99 1012.33 Balance at the end of the year 9884.80 9158.59 Bonds Redemption Reserve is created for the purpose of redemption of debentures in term of the Companies Act, 2013.
Note 22/Other Equity
22.1 Securities Premium
22.2 Bonds Redemption Reserve
Particulars As at 31st March, 2019 As at 31st March, 2018
Particulars As at 31st March, 2019 As at 31st March, 2018
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
(` in Crore)
(` in Crore)
Further Notes:
1) Reconciliation of number and amount of share capital outstanding at the beginning and at the end of the reporting period
Standalone Financial Statements
208
Balance at the beginning of the year 735.03 676.64 Addition during the year 249.07 226.25 Deduction during the year 101.92 167.86Balance at the end of the year 882.18 735.03 Self-InsuranceReserveiscreated@0.12%p.a.(0.12%p.a.inpreviousyear)ontheGrossBlockofProperty,Plant&Equipmentsnotcoveredunderinsuranceasattheendoftheyeartomeetfuturelosseswhichmayarisefromun-insuredrisksandforprocurementoftowersandothertransmissionlinematerialsincludingstrengtheningoftowersandequipmentsofACsub-stationtotakecareoffuturecontingencies.
Balance at the beginning of the year 123.33 123.38Addition during the year - -Deduction during the year 8.79 0.05 Balance at the end of the year 114.54 123.33 CorporateSocialResponsibilityReserveiscreatedtotheextentofshortfallintheactualexpenditureinanyyearvis-à-vistheamountstipulatedas per the Companies Act, 2013.
22.3 Self Insurance Reserve
22.4 Corporate Social Responsibility (CSR) Activity Reserve
Particulars As at 31st March, 2019 As at 31st March, 2018
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
(` in Crore)
Balance at the beginning of the year 26911.55 23243.64 Add/(Less):IndAS115Adjustments* 104.37 - 27015.92 23243.64 Addition during the year 4360.71 3667.91 Deductionduringtheyear - -Balance at the end of the year 31376.63 26911.55 GeneralReserveisretainedearningsofthecompanywhicharekeptasideoutofcompany’sprofits.Itisafreereservewhichcanbeutilizedtomeet any unknown future contingencies and to pay dividends to shareholders.* Refer note no 46 for details.
22.5 General Reserve
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
Balance at the beginning of the year 2585.74 2754.86Add: Additions NetProfitfortheperiod 9938.55 8244.65 Items of other comprehensive income recognised directly in surplus balance -Remeasurementsofpostemploymentbenefitobligations (2.15) 20.95 Transfer from Bond Redemption Reserve 1302.99 1012.33 Less: Appropriations General Reserve 4250.00 3500.00 Bonds Redemption Reserve 2029.20 2075.83 Self Insurance Reserve 249.07 226.25 Interim dividend paid 3050.02 1281.74 TaxonInterimdividend 612.65 255.20 Final Dividend (refer note 62(b)) 1464.85 1752.59 TaxonFinalDividend 296.92 355.44 Balance at the end of the year 1872.42 2585.74
22.6 General Reserve
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
Note 22/Other Equity (Contd.)
209
Balanceatthebeginningoftheyear 90.84 103.76Addition during the year (14.15) (12.92)Balance at the end of the year 76.69 90.84 OtherComprehensiveIncomeReserveiscreatedfromincrease/decreaseinvaluationofNonCurrentInvestmentsinEquityinstrumentsclassifiedas fair valued through Other Comprehensive Income (FVOCI).
22.7 Other Comprehensive Income Reserve
Note 23/ Borrowings
Particulars As at 31st March, 2019 As at 31st March, 2018 (` in Crore)
(` in Crore)Particulars As at 31st
March, 2019As at 31st
March, 2018A) BONDSA1) Secured (Taxable, Redeemable, Non-Cumulative,
Non-Convertible)A1.1 i) Bonds of ` 10 Lakh each
LV Issue-7.55% Redeemable at par on 21.09.2031 1,238.92 1,238.91LX Issue-7.20% Redeemable at par on 09.08.2027 3,059.78 3,059.76 LIX Issue-7.30% Redeemable at par on 19.06.2027 3,069.78 3,069.76 XXXIX Issue-9.40% redeemable at par on 29.03.2027 1,799.86 1,799.86LVIII Issue-7.89% redeemable at par on 09.03.2027 2,059.44 2,059.41 XXXVIII Issue-9.25% redeemable at par on 09.03.2027 854.72 854.72LVI Issue-7.36% redeemable at par on 18.10.2026 1,064.10 1,064.08LXII Issue-8.36% Redeemable at par in 05(five) equal installments w.e.f. 07.01.2025
1,999.75 -
XLII Issue-8.80% redeemable at par on 13.03.2023 1,989.52 1,989.49
LVII Issue-7.20% redeemable at par on 21.12.2021 2,118.79 2,118.75ii) Bonds of ` 30 Lakh each consisting of 3 STRPPs of ` 10 lakh each redeemable at par in 3
(Three)equalinstallmentson15.07.2021,15.07.2026and15.07.2031LIV Issue-7.97% Redeemable w.e.f 15.07.2021 2,997.93 2,997.89
iii) Bonds of ` 30 Lakh each consisting of 3 STRPPs of ` 10 lakh each redeemable at par in 3 (Three)equalinstallmentson23.12.2020,23.12.2025and23.12.2030LII Issue-8.32% redeemable w.e.f. 23.12.2020 1,396.95 1,396.94
iv) Bonds of ` 1.20 crore each consisting of 12 STRPPs of ` 10 lakh each redeemable at par in12(twelve)equalinstallmentsLIII Issue-8.13% Redeemable w.e.f 25.04.2020 3,995.76 3,995.46
v) Bonds of ` 30 Lakh each consisting of 3 STRPPs of ` 10 lakh each redeemable at par in 3 (Three)equalinstallmentson09.03.2020,09.03.2025and09.03.2030XLIX Issue-8.15% redeemable w.e.f. 09.03.2020 869.63 1,304.60
vi) Bonds of `40 Lakh each consisting of 4 STRPPs of `10 lakh each redeemable at par in 4(Four)equalinstallmentson23.01.2020,23.01.2022,23.01.2025and23.01.2030XLVIII Issue-8.20% redeemable w.e.f. 23.01.2020 1,933.70 2,578.64
vii) Bonds of ` 1.20 crore each consisting of 12 STRPPs of ` 10 lakh each redeemable at par in12(twelve)equalinstallmentsLI Issue-8.40% redeemable w.e.f. 14.09.2019 2,747.80 2,997.62
viii) Bonds of ` 30 Lakh each consisting of 3 STRPPs of ` 10 lakh each redeemable at par in 3(Three)equalinstallmentson04.09.2019,04.09.2024and04.09.2029XLVI Issue-9.30% redeemable w.e.f. 04.09.2019 2,903.53 4,357.52
Note 22/Other Equity (Contd.)
Standalone Financial Statements
210
Particulars As at 31st
March, 2019As at 31st
March, 2018ix) Bonds of ` 1.20 crore each consisting of 12 STRPPs of `10 lakh each redeemable at par
in12(twelve)equalinstallmentsL Issue-8.40% redeemable w.e.f. 27.05.2019 2,682.75 2,926.70
x) Bonds of ` 1.20 crore each consisting of 12 STRPPs of `10 lakh each redeemable at par in12(Twelve)equalinstallmentsXLVII Issue-8.93% redeemable w.e.f. 20.10.2018 2,197.98 2,417.64
xi) Bonds of 30Lakheachredeemableatparin3equalinstalmentson15.07.2018,15.07.2023and15.07.2028XLIV Issue-8.70% redeemable w.e.f. 15.07.2018 2,641.89 2,640.88
xii) Bonds of `1.2 crores each consisting of 12 STRPPs of ` 10 lakhs each redeemable at par in12(Twelve)equalannualinstalmentsXLV Issue-9.65% redeemable w.e.f. 28.02.2018 1,499.14 1,665.55 XLIII Issue-7.93% redeemable w.e.f. 20.05.2017 2,343.46 2,603.84
xiii) Bonds of ` 1.5 crores each consisting of 12 STRPPs of `12.50 Lakhs each redeemable at parin12(twelve)equalannualinstalments.XLI Issue-8.85% redeemable w.e.f. 19.10.2016 1,892.95 2,129.59
xiv) Bonds of ` 1.50 crores each, consisting of 15 STRPPs of ` 10.00 Lakhs each redeemable atparin15(fifteen)equalannualinstalmentsXXXVI Issue- 9.35% redeemable w.e.f. 29.08.2016 2,263.49 2,469.27
xv) Bonds of ` 1.5 crores each consisting of 12 STRPPs of ` 12.50 Lakhs each redeemable at parin12(twelve)equalannualinstalments.XL Issue-9.30% redeemable w.e.f. 28.06.2016 2,662.67 2,995.53 XXXVII Issue- 9.25% redeemable w.e.f 26.12.2015 1,162.66 1,328.77XXXV Issue- 9.64% redeemable w.e.f 31.05.2015 1,141.04 1,304.05 XXXIV Issue- 8.84% redeemable w.e.f 21.10.2014 1,741.84 2,032.19 XXXIII Issue- 8.64% redeemable w.e.f 08.07.2014 1,438.78 1,678.61XXXII Issue- 8.84% redeemable w.e.f 29.03.2014 431.21 517.45 XXXI Issue- 8.90% redeemable w.e.f 25.02.2014 852.77 1,023.33 XXX Issue- 8.80% redeemable w.e.f 29.09.2013 970.77 1,164.96 XXIX Issue- 9.20% redeemable w.e.f 12.03.2013 432.37 540.47 XXVIII Issue- 9.33% redeemable w.e.f 15.12.2012 799.13 998.95XXVII Issue- 9.47% redeemable w.e.f 31.03.2012 176.18 234.92 XXVI Issue- 9.30% redeemable w.e.f 07.03.2012 249.66 332.88XXV Issue- 10.10% redeemable w.e.f 12.06.2011 265.97 354.65 XXIV Issue- 9.95% redeemable w.e.f 26.03.2011 133.23 199.85XXIII Issue- 9.25% redeemable w.e.f 09.02.2011 51.21 76.82XXII Issue- 8.68% redeemable w.e.f 07.12.2010 114.86 172.32 XXI Issue- 8.73% redeemable w.e.f 11.10.2010 84.88 127.34 XX Issue- 8.93% redeemable w.e.f 07.09.2010 249.65 374.53 XIX Issue- 9.25% redeemable w.e.f 24.07.2010 82.39 123.60 XVIII Issue- 8.15% redeemable w.e.f 09.03.2010 83.22 166.45
64,746.11 69,484.55
Note 23/ Borrowings (Contd.) (` in Crore)
211
Particulars As at 31st
March, 2019As at 31st
March, 2018A2) Unsecured
A2.1 Redeemable Domestic BondsBonds of ` 50 Lakhs each consisting of 05 STRPPs of ` 10.00 Lakhs each redeemable at parin05(Five)equalannualinstalments.LXI Issue-7.74% redeemable w.e.f. 12.12.2028 2,999.77 2,999.75
A2.2 Redeemable Foreign Currency Bonds3.875%ForeignCurrencyBondstoberedeemedatparon17.01.2023 3,470.63 3,253.88
6,470.40 6,253.63
Total (A) 71,216.51 75,738.18
B) Term loans
from Banks Secured
ForeignCurrencyLoans[GuaranteedbyGovernmentofIndia(GOI)] 24,891.44 21,294.39 Other Foreign Currency Loans 3,401.76 2,548.77Rupee Loans 12,184.00 13,638.00
40,477.20 37,481.16 Unsecured
ForeignCurrencyLoans[GuaranteedbyGovernmentofIndia(GOI)] 3,657.84 3,738.32Other Foreign Currency Loans 3,135.96 2,022.66 Rupee Loans 12,552.00 3,440.00
19,345.80 9,200.98
Total (B) 59,823.00 46,682.14Total (A to B) 1,31,039.51 1,22,420.32
Further notes: Details of terms of repayment and rate of interest
1. SecuredForeignCurrencyLoans(GuaranteedbyGoI)carryfloatingrateofinterestlinkedto6MLIBOR.Theseloansarerepayableinsemiannualinstallment,aspertermsoftherespectiveloanagreement,commencingaftermoratoriumperiodof3to5yearsexceptforoneloan` 342.93 Crore (Previous year`199.69Crore)whichcarryfixedrateofinterestof0.25%p.a.
2. SecuredotherForeignCurrencyLoanscarryfloatingrateofinterestlinkedto6M(LIBOR/EURIBOR/STIBOR).Theseloansarerepayableinsemi annual installment, as per terms of the respective loan agreements, commencing after moratorium period of 3 to 5 years.
3. SecuredRupeeloanfrombankscarryfloatingrateofinterestlinkedto3MMCLR.Theseloansarerepayableinsemiannualinstallments,as per terms of the respective loan agreements, commencing after moratorium period of 5 years.
4. UnsecuredForeignCurrencyLoans(GuaranteedbyGoI)carryfixedrateofinterestrangingfrom1.63%p.a.to2.30%p.a.Theseloansare repayable in semi annual installments as per terms of the respective loan agreements.
5. UnsecuredForeignCurrencyLoanscarryfloatingrateofinterestlinkedto6MSTIBOR/EURIBOR/JPYLIBOR.Theseloansarerepayablein semi annual installments as per terms of the respective loan agreements, commencing after moratorium period as per terms of the respective loan agreements.
6. UnsecuredRupeeloansfrombankscarryfloatingrateofinterestlinkedto3monthsMCLR.Theseloansarerepayableinsemiannualinstallments, commencing after moratorium period as per terms of the respective loan agreements.
7. There has been no default in repayment of loans or payment of interest thereon as at the end of the year.
Note 23/ Borrowings (Contd.) (` in Crore)
Standalone Financial Statements
212
Details of Securities
1. Domestic Bonds are Secured by way of Registered Bond Trust Deed ranking pari passu on immovable property situated at Mouje Ambheti TalukaKaparadaindistrictValsadGujaratandfloatingchargeontheassetsofthecompany.
2. Secured Foreign Currency Loans (Guaranteed by GoI) are secured by pari passu interest in the lien created on the assets as security for the debts.
3. Secured Other Foreign Currency Loans and Rupee Loans are secured by the way of
(i) paripassuchargeontheassetsofthecompanyexceptinvestments,landandbuilding,roadsandbridges,watersupply,drainageand sewerage and current assets or
(ii) paripassuchargeontheassetsofthecompanyexceptinvestmentsandcurrentassetsor
(iii) floatingchargeontheimmovablepropertiesofthecompany. as per the terms of respective loan agreements.
Deposits/Retentionmoneyfromcontractorsandothers. 409.94 456.95Govt. of India fully serviced bonds * 3487.50 -DuesforCapitalExpenditure - 2.65Total 3897.44 459.60
Further Notes: DisclosurewithregardtoMicroandSmallenterprisesasrequiredunder“TheMicro,SmallandMediumEnterprisesDevelopmentAct,2006”isgiven in Note No 50. *Govt.ofIndiafullyservicedbondsissued@8.24%redeemableatparon14.02.2029.ReferNoteNo11fordetails.
Employee Benefits As per last balance sheet 716.87 789.56Additions/(adjustments)duringtheyear (348.72) (72.69)Closing Balance 368.15 716.87
Further Notes: Provisioniscreatedforthepurposeofleaveencashment,SettlementAllowance,LongServiceAwardandotherbenefits.ReferNoteNo66fordetaileddisclosurerelatedtoEmployeeBenefitObligations.
A. Deferred Tax Liability Differenceinbookdepreciationandtaxdepreciation 16894.24 14209.42Finance lease assets 83.23 88.37Others 37.60 48.27Deferred Tax Liability (A) 17015.07 14346.06
Note 24/Other Non-current financial liabilities
Note 25/ Provisions
Note 26/ Deferred tax liabilities (Net)
Particulars As at 31st March, 2019 As at 31st March, 2018
Particulars As at 31st March, 2019 As at 31st March, 2018
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
(` in Crore)
(` in Crore)
Note 23/ Borrowings (Contd.)
213
Particulars Property Plant and Equipment
Finance Leased Assets
Others Total
At 1st April, 2017 11214.62 90.83 66.30 11371.75Charged/(credited)-toprofitorloss 2994.80 (2.46) (18.03) 2974.31At 31st March, 2018 14209.42 88.37 48.27 14346.06Charged/(credited)-toprofitorloss 2684.82 (5.14) (10.67) 2669.01At 31st March, 2019 16894.24 83.23 37.60 17015.07
a) Acreditof₹3465.87crore(Previousyearchargeof₹3140.15crore)hasbeenmadeintheStatementofProfit&Loss.b) Matterregardingpresentationof‘DeferredAssetsagainstDeferredTaxLiability’inBalanceSheetandStatementofProfitandlosswas
referred toExpertAdvisoryCommittee (EAC)of InstituteofChartered Accountantof India.Asperopinionreceivedduring theyear‘DeferredAssetsagainstDeferredTaxLiability’whichwashithertonettedwithDeferredTaxLiability,isclassifiedas‘RegulatoryDeferralAccountBalance” inBalanceSheetandStatementProfitandLossAccount‘.Furtherrefertonoteno54 ‘ReclassificationofPriorYearPresentation’.
Movement in Deferred Tax Assets(₹inCrore)
Particulars Property Plant & Equipment-Income during construction
period
Self-insurance
reserve
Provisions allowable on
payment basis
Advance against
depreciation
MAT Credit
Others Total
At 1st April, 2017 18.69 11.26 236.77 562.31 0.00 123.98 953.01Charged/(credited)-toprofitorloss (1.93) (3.15) (20.85) (36.72) - (103.19) (165.84)At 31st March, 2018 16.76 8.11 215.92 525.59 0.00 20.79 787.17Charged/(credited)-toprofitorloss 4.19 (8.11) 266.01 (63.12) 5935.70 0.21 6134.88At 31st March, 2019 20.95 0.00 481.93 462.47 5935.70 21.00 6922.05
Amount taken to Statement of Profit and Loss(₹inCrore)
B. Deferred Tax Assets Income during Construction Period 20.95 16.76 SelfInsuranceReserve - 8.11 Provisionsallowableonpaymentbasis 481.93 215.92 Advance Against Depreciation 462.47 525.59 MATCreditEntitlement 5935.70 - Others 21.00 20.79
Deferred Tax Assets (B) 6922.05 787.17
Deferred Tax Liability (Net) (A-B) 10093.02 13558.89
Note 26/ Deferred tax liabilities (Net) (Contd.)Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
(` in Crore)
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Increase/(Decrease)inDeferredTaxLiabilities 2669.01 2974.31Decrease/(Increase)inDeferredTaxAssets (6134.88) 165.84Total (3465.87) 3140.15
Further Notes :Movement in Deferred Tax Liabilities
Standalone Financial Statements
214
Advancefromcustomers(Consultancy/Telecomservices)$ 359.04 328.84Others* 127.53 128.32Total 486.57 457.16
Further Notes: $ReferNote46fordisclosureasperIndAS115‘RevenuefromContractswithCustomers’. *Others includes amount payable to Customers upon recovery.
Short Term - Unsecured From Others
From Banks 1300.00 -Commercial Paper 3000.00 1000.00
Total 4300.00 1000.00
Further Notes: 1. CommercialPapers/shorttermloanareunsecuredinnature,withrateofinterestrangingform6.63%to8.20%andrepayablewithin30
days to 90 days from the date of drawal. 2. There has been no default in repayment of loans or payment of interest thereon as at the end of the year.
Note 27/Other non-current liabilities
Note 28/Borrowings
Particulars As at 31st March, 2019 As at 31st March, 2018
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
(` in Crore)
c) Intheopinionofthemanagement,itisprobablethatfutureeconomicbenefitswillflowtothecompanyintheformofavailabilityofsetoffagainstfutureincometaxliabilitybyrecognizingMATcreditasfollows:
Future taxableprofitswillbeadjustedagainst(a) taxholidayu/s80-IAofIncomeTaxAct,1961for theprojectscommissionedupto 31stMarch,2017(b)initialdepreciationontheassetstobecommissionedinfutureand(c)regularincometaxdepreciationu/s32ofIncomeTaxAct,1961andthereaftertaxamountwillbesetoffagainstMATcredittotheextentof`2003.24Cr(FY2016-17),` 2203.64 Cr(FY2017-18)and`1728.82Cr(FY2018-19).Hence,thesamehasbeenrecognisedasDeferredTaxAssetsduringtheyear.
d) MAT credit available to the company in future but not recognised in the books:(` in Crore)
For the Financial Year As at 31st March 2019 Expiry Date As at 31st March 2018 Expiry Date2017-18 - 31st March 2033 2203.64 31st March 20332016-17 - 31st March 2027 2003.24 31st March 20272015-16 1421.20 31st March 2026 1421.20 31st March 20262014-15 1281.23 31st March 2025 1281.23 31st March 20252013-14 1085.14 31st March 2024 1085.14 31st March 20242012-13 1071.31 31st March 2023 1071.31 31st March 20232011-12 239.01 31st March 2022 239.01 31st March 20222010-11 9.36 31st March 2021 9.36 31st March 20212009-10 - 31st March 2020 - 31st March 20202008-09 277.91 31st March 2019 277.91 31st March 20192007-08 - 31stMarch2018 250.01 31stMarch2018
e) Tax losses brought forward: (` in Crore)
Particulars As at 31st March 2019 Expiry Date As at 31st March 2018 Expiry Date*Unusedtaxlossesforwhichnodeferredtaxassethasbeenrecognised
- - 2761.43 -
DeferredtaxassethasnotbeenrecognisedinrespectofthetaxlossesincurredbythecompanythatisnotlikelytogeneratetaxableincomeintheforeseeablefutureduetotheavailabilityofdeductionoftaxholidaytothecompanyundertheIncomeTaxAct,1961.
*UndertheprovisionsoftheIncomeTaxAct,1961,unabsorbeddepreciationcanbecarriedforwardforanunlimitedperiod.
215
For goods and services (A) total outstanding dues of micro enterprises and small enterprises 33.27 2.33(B) total outstanding dues of creditors other than micro enterprises and
small enterprises 330.84 238.01Total 364.11 240.34
Further Notes: DisclosurewithregardtoMicroandSmallenterprisesasrequiredunder“DivisionIIofScheduleIIIofTheCompaniesAct,2013”and“TheMicro,Small and Medium Enterprises Development Act, 2006” is given in Note No 50.
Note 29/Trade payablesParticulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
Current maturities of long term borrowings Secured
Bonds 6742.98 5211.89 Rupee Term Loans 1454.00 454.00 Foreign Currency Loans 2098.85 1849.71
10295.83 7515.60 Un-secured
Foreign Currency Loans 451.02 277.04 10746.85 7792.64Interest accrued but not due on borrowings from
ForeignBanks&FinancialInstitutions 251.70 144.90Secured/UnsecuredredeemableBonds# 3139.72 3302.76
3391.42 3447.66Others
Duesforcapitalexpenditure 2478.41 4065.11 Employee related liabilities 158.03 170.31Unclaimeddividends&FPO* 13.37 12.61Deposits/Retentionmoneyfromcontractorsandothers. 4401.05 4761.13 Related parties** 2.72 52.05 Dividend Payable 6.81 -Others## 1687.52 1204.10
8747.91 10265.31Total 22886.18 21505.61
Further notes: DisclosurewithregardtoMicroandSmallenterprisesasrequiredunder“TheMicro,SmallandMediumEnterprisesDevelopmentAct,2006”isgiven in Note No 50. #includes`36.22 Crore interest accrued but not due on GoI fully serviced bonds. * No amount is due for payment to Investor Education and Protection Fund. **DetailsofamountpayabletorelatedpartiesareprovidedinNote58. ##OthersincludeliabilityforpaymentagainstLongTermAccess(LTA),ShortTermOpenAccess(STOA),ISTSLicenserecovery,deadcheques,Price variation etc.
Note 30/Other Current Financial Liabilities
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
Standalone Financial Statements
216
Advances from customers * 3500.58 2569.87Advancesfromcustomers-relatedparties# 80.42 -Statutory dues 282.26 117.46Total 3863.26 2687.33
Further notes: * Refer Note 46 for disclosure as per Ind AS 115 ‘Revenue from Contracts with Customers’. #DetailsofamountpayabletorelatedpartiesareprovidedinNote58.
A) Employee Benefits
i) Performance related pay /special incentive
As per last balance sheet 163.33 109.83
Addition during the year 444.50 163.46
Amountpaid/adjustedduringtheyear 163.33 109.96
Closing Balance 444.50 163.33
ii) Wage revision
As per last balance sheet 725.36 265.43
Additions/(adjustments)duringtheyear (725.36) 459.93
Closing Balance - 725.36
iii) Other Employee Benefits
(Leave Encashment, Settlement Allowance and Long Service Award etc.)
As per last balance sheet 66.52 73.86
Additions/(adjustments)duringtheyear 1.59 (7.34)
Closing Balance 68.11 66.52
Total (A) 512.61 955.21
B) Others
i) Downtime Service Credit-Telecom
As per last balance sheet 18.20 14.85
Additions during the year 5.49 8.26
Amounts adjusted during the year 5.74 4.91
Closing Balance 17.95 18.20
ii) Provision Others
As per last balance sheet 86.17 73.24
Additions/(adjustments)duringtheyear 83.86 12.93
Closing Balance 170.03 86.17
Total (B) 187.98 104.37
Total (A+B) 700.59 1059.58
Note 31/Other current liabilities
Note 32/Provisions
Particulars As at 31st March, 2019 As at 31st March, 2018
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
(` in Crore)
217
Further Notes:Employee BenefitsPerformanceRelatedPay/SpecialIncentiveProvisioniscreatedforPerformanceRelatedPaytoExecutivesandNon-ExecutivesWageRevisionPayrevisionofExecutivesandNonExecutiveswasimplementedduringtheFY2018-19andaccordinglyprovisionagainstwagerevisionwasutilised/adjustedduringtheyear.OtherEmployeeBenefitsProvisioniscreatedforthepurposeofmeetingoutleaveencashment,settlementallowance,longserviceawardandPOWERGRIDEmployeeFamily Rehabilitation Scheme.OthersDowntimeServiceCredit-TelecomProvisioniscreatedincasewhenactualdowntimeisinexcessofthepermissibleservicelevelagreement,insuchcasesthenecessarycreditis passed on to the customer on demand.However, in some case, the downtime is not claimed by the customer then in such cases necessary provision on account of downtime is made in thebooksofaccountsasperthelinksavailabilityreportsreceivedfromNationalTelecomControlCentre(NTCC)fortheperiodofnon-operationof links given to the customers. The calculation of downtime credit is based on the SLA signed with various customers.Provision Others: Itincludesprovisionforentrytax₹138.39crore(PreviousYear₹71.44crore)asperdemandraisedbyrevenueauthoritiesdisputedbythecompanyandareunderlitigation.Anamountof₹8.24crore(PreviousYearNil)hasbeenpaidundercourtorderandshownas“Balancewithcustom port trust and other authorities” in Note 19.
Taxation (Including interest on tax) As per last balance sheet 5781.65 4846.07Additions during the year 1794.90 2218.93Amount adjusted during the year 1574.73 1283.35Total 6001.82 5781.65NetoffagainstAdvancetaxandTDS 6001.82 5374.58Closing Balance - 407.07
Advance against depreciation 1323.45 1504.09 Grants in aid (Refer Further Notes)
As per last Balance Sheet 559.56 150.30 Addition during the year 3684.53 421.39 Adjustments during the year 70.77 12.13 Closing balance 4173.32 559.56
Deferredincomefromforeigncurrencyfluctuation(Net) 3960.26 2903.76 Total 9457.03 4967.41 Further Notes: 1. Grant in Aid of `2889.00crore(PreviousYearNilcrore)wasreceivedfromPowerSystemDevelopmentFund(PSDF)towardsTransmission
systemassociatedwith‘NorthEast-Northern/WesternInterconnector-IProject’and‘TransmissionsystemfordevelopmentofpoolingstationinNorthernPartofWestBengalandtransferofpowerfromBhutantoNR/WR(BNC-AgraHVDC)’.
2. Grant in Aid of `667.78crore(PreviousYear` 141.15 crore) was received from Power System Development Fund (PSDF) for installation of STATCOMinER(ERSS-XI)andSR(SystemStrengtheninginSR-XXI).InadditiontoGrantreceived,aninterestof` 1.24 crore (Previous Year ` 0.12 crore) credited to the Grant.
3. Grant in Aid of `17.85crore(PreviousYear`115.99crore)wasreceivedfromPowerSystemDevelopmentFund(PSDF)forUnifiedRealTimeDynamicStateMeasurement(URTDSM).InadditiontoGrantreceived,aninterestof` 6.95 crore (Previous Year Nil) credited to the Grant.
4. Grant in Aid of `93.87crore(PreviousYear`164.13crore)wasreceivedfromMinistryofNaturalResources&Environment(MNRE)forestablishmentoftransmissionsystemassociatedwithUltraMegaSolarParksinAndhraPradesh,Karnataka,MadhyaPradesh,RajasthanandGujarat. In addition to Grant received, an interest of `0.83crore(PreviousYearNil)creditedtotheGrant.
5. Grant in Aid of `7.01crore(PreviousYearNil)receivablefromMinistryofNew&RenewableEnergyforestablishingsolarrooftopplantsinvarious buildingsofPOWERGRIDunderachievementlinked/incentiveawardschemeforGovernmentSector.
Note 33/Current Tax Liabilities (Net)
Note 34/Deferred Revenue
Particulars As at 31st March, 2019 As at 31st March, 2018
Particulars As at 31st March, 2019 As at 31st March, 2018
(` in Crore)
(` in Crore)
Note 32/Provisions (Contd.)
Standalone Financial Statements
218
Sales of services Transmission Business
Transmission Charges 32436.35 28326.44Add: Revenue recognised out of Advance Against Depreciation 180.64 120.72
32616.99 28447.16Other Operating Revenue InterestondifferentialProvisionalandFinalTariff 145.87 25.36 Income from lease lines 11.31 11.17 Recognisedfromdeferredrevenue-Grantinaid 70.77 12.13
227.95 48.66 32844.94 28495.82
Telecom Business 663.25 606.59
Consultancy Project Management and Supervision 610.93 662.18Total 34119.12 29764.59
Note 35/Revenue from operations
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
(` in Crore)
Interest income from financial assets at amortised cost Interest on Govt.securities - 0.07 Indian Banks 84.22 110.72 Interest on loan to Subsidiaries 759.93 438.74 Interest on Loan to Joint Ventures (JVs) 2.40 - Others* 19.65 14.62 866.20 564.15 Interest from advances to contractors 35.18 54.36 901.38 618.51Dividend income from investment in Subsidiaries 86.69 22.92 Joint Ventures 57.67 65.55 Equityinvestmentsdesignatedatfairvaluethroughothercomprehensiveincome 5.42 5.58 149.78 94.05
Further Notes:
a) Inexerciseofpowersu/s178oftheElectricityAct2003,CentralElectricityRegulatoryCommission(CERC)hasnotified“CERC(TermsandConditionsoftariff)Regulations2014”videorderdated21stFebruary,2014forthedeterminationoftransmissiontarifffortheblockperiod2014-19.
b) Thecompanyhasrecognisedtransmissionincomeduringtheyearasperthefollowing:-
i)₹27229.59Crore(previousyear₹24212.90Crore)asperfinaltariffordersissuedbyCERC.
ii) ₹5387.40Crore(previousyear₹4234.17Crore)inrespectoftransmissionassetsforwhichfinaltariffordersareyettobeissuedasperCERCTariffRegulationsandotherordersinsimilarcases.
c) Consequent to thefinal order issuedbyCERC, transmission income includes₹285.42 crore (increase) (PreviousYear₹79.33Crore(decrease)) pertaining to earlier years.
d) Refer note no 46 for disclosure as per Ind AS 115 “ Revenue from Contracts with Customer”.
Note36/Other income
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
(` in Crore)
219
Note36/Other income (Contd.)
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
(` in Crore)
Salaries,wages,allowances&benefits 1838.79 1844.95Contribution to provident and other funds 228.50 112.24 StaffWelfareexpenses(IncludingDeferredEmployeecost) 233.25 193.10 2300.54 2150.29 Less:TransferredtoExpenditureduringConstruction(Net)-Note43 509.80 544.40 TransferredtoCSRexpenses-Note40 7.17 6.80Total 1783.57 1599.09
Note 37/Employee benefits expense
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
(` in Crore)
Further Notes :
a) Refernote58forRemunerationtoKeyManagerialPersonnel(KMPs).
b) PayrevisionofExecutiveandNon-executiveimplementedduringthecurrentfinancialyearandanamountof₹18.67crores(Netofamounttransferredtoexpenditureduringconstruction)waswrittenbackagainstprovisionforwagerevision.
c) Special allowance was settled as per the rates approved by Ministry of Power and Department of Public Enterprises to employees who are postedinthedifficultandfarflungareas.Anamountof₹22.65croreswasrecoveredformemployeesduringthecurrentyearbeingtheexcessamountpaidinearlierperiod.
d) Refernoteno.66fordetailsofEmployeeBenefitObligations.
Others ProfitonsaleofProperty,PlantandEquipment 1.26 0.45 FinanceIncomefromfinancelease 69.66 73.64 Surcharge 196.74 155.61 FERV gain 0.16 0.32 Provisions written back 28.25 8.36 FairValuegainoninitialrecognitionofFinancialliability/investment 55.73 50.56 Miscellaneous income ** 185.90 105.89 537.70 394.83 1588.86 1107.39 Less:Transferredtoexpenditureduringconstruction(Net)-Note43 89.91 105.66 Total 1498.95 1001.73
Further Notes: *Othersincludeinterestonemployeeloans&unwindingoffinancecostonemployeeloans. **MiscellaneousincomeincludeSaleofScrap,InsuranceClaimRecovery,UIChargesetc.
Standalone Financial Statements
220
Interest and finance charges on financial liabilities at amortised cost IndianBanks&FinancialInstitutions 2094.59 1367.58 Foreign Banks and Financial Institutions 956.83 558.71 Secured/UnsecuredredeemableBonds 6401.86 6534.22 Foreign Currency Bonds 147.78 134.89Unwinding of discount on financial liabilities 113.02 51.25 Interest - Others 34.51 15.45 9748.59 8662.10Other Finance charges Commitment charges 7.08 10.13 Guarantee Fee 449.17 296.95 Others* 116.96 62.03 573.21 369.11 Exchange differences regarded as adjustment to Borrowing Cost (112.00) 205.10 461.21 574.21 10209.80 9236.31 Less:TransferredtoExpenditureduringConstruction(Net)-Note43 1118.38 1645.65 Total 9091.42 7590.66
Further Notes: *Othersincludesmanagementfees,agencyfees,trusteefees,front-endfees,interestonlandcompensation,tree&cropcompensationetc.
Note 38/Finance costs
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
(` in Crore)
DepreciationofProperty,PlantandEquipment 10373.59 9206.66 Amortization of Intangible assets 110.16 100.99 10483.75 9307.65 Less:TransferredtoExpenditureDuringConstruction(Net)-Note43 10.29 12.76 10473.46 9294.89Less: Depreciation amortised due to FERV adjustment 272.79 203.64 Charged to Statement of Profit & Loss 10200.67 9091.25
Repair & Maintenance Buildings 86.36 64.66 Plant&Machinery Sub-Stations 355.14 333.00 Transmission lines 290.53 147.10 Telecomequipments 35.96 37.25 Others 42.79 38.64 724.42 555.99
Note 39/Depreciation and amortization expense
Note 40/Other expenses
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
(` in Crore)
(` in Crore)
221
(` in Crore)
System and Market Operation Charges 10.58 8.22Power charges 259.35 242.21 Less: Recovery from contractors 3.03 1.13 256.32 241.08ExpensesofDieselGeneratingsets 4.95 5.04 Stores consumed 10.61 8.67Watercharges 9.77 2.70 RightofWaycharges-Telecom 8.20 7.57 PatrollingExpenses-Telecom 1.38 2.95 LastMileconnectivity-Telecom 9.01 9.83Training&RecruitmentExpenses 31.67 30.82Less:Fees for training and application 1.55 2.00 30.12 28.82Legalexpenses 20.20 19.40 Professional charges 24.71 22.62 Consultancyexpenses 2.23 1.96 Communicationexpenses 16.39 16.03 InlandTravellingExpenses 117.66 104.49 Foreign travel 11.09 11.11 128.75 115.60 Tenderexpenses 13.27 12.09 Less: Sale of tenders 1.56 1.89 11.71 10.20 Payments to Statutory Auditors Audit Fees 1.18 1.07 TaxAuditFees 0.33 0.26 In Other Capacity 1.15 1.21 Arrears 0.03 0.36 OutofpocketExpenses 1.00 0.99 3.69 3.89Advertisement and publicity 13.95 14.01 Printing and stationery 7.22 5.70 Books Periodicals and Journals 1.77 1.48EDP hire and other charges 17.84 10.70 Entertainmentexpenses 2.74 3.17 Brokerage&Commission 1.16 1.08Research&Developmentexpenses 12.67 1.33 CostAuditandPhysicalverificationFees 1.35 1.26 Rent 13.95 14.60 CERCpetition&Othercharges 74.16 62.31 Miscellaneousexpenses 99.10 94.05 HorticultureExpenses 28.90 27.11 SecurityExpenses 260.11 243.42 Hiring of Vehicle 155.48 143.00 Insurance 104.35 79.31 Ratesandtaxes 39.63 34.63
Note 40/Other expenses (Contd.)
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Standalone Financial Statements
222
License Fees to DOT 59.11 60.38Bandwidthchargesdarkfibreleasecharges(Telecom) 27.71 30.70 CorporateSocialResponsibility(CSR)Expenses* 195.52 157.99 TransitAccomodationExpenses 25.42 22.28Less : Income from Transit Accomodation 1.67 1.36 23.75 20.92ForeignExchangeRateVariation 225.47 162.08Provisions for Doubtful loans, advances, debts, claims etc. 396.19 16.39 Obsolescence in Stores 8.51 14.86 Shortages in Stores - 0.42 Others ** 4.00 - 408.70 31.67 3134.04 2326.13 Less:TransferredtoExpenditureduringConstruction(Net)-Note43 107.45 121.18 3026.59 2204.95 LossonDisposal/WriteoffofProperty,Plant&Equipment 26.84 10.75 Total 3053.43 2215.70
Further Note: * Includes an amount of `7.17 crore (Previous Year `6.80crore)transferredfromNoteNo37-‘EmployeeBenefitsExpense’ **ProvisionfordiminutioninthevalueofInvestmentinJVCompany(RINLPOWERGRIDTLTPrivateLimited)
Note 40/Other expenses (Contd.)
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
(` in Crore)
Deferredassetsfordeferredtaxliability* (3472.89) 3121.19 Foreign Currency Fluctuation 232.27 195.92 EmployeeBenefitsExpense 19.67 11.31 (3220.95) 3328.42Taxonnetmovementinregulatorydeferralaccountbalances (694.08) 44.23 Total (2526.87) 3284.19
Further Note: *Refertonoteno54forreclassificationofprioryearpresentation. Refer to note no 53 for detailed disclosure on Regulatory Deferral Account Balances.
ItemsthatwillnotbereclassifiedtoProfitorLoss Gain/(Loss)onvaluationofInvestmentinEquity (14.15) (12.92)Provisions for actuarial valuation (0.26) 37.58
(14.41) 24.66 Less:TransferredtoExpenditureduringConstruction(Net)-Note43 2.34 10.94 (16.75) 13.72 IncomeTaxrelatingtoitemsthatwillnotbereclassifiedtoProfitorLoss (0.45) 5.69 Items that will not be reclassified to Profit or Loss (net of tax) (16.30) 8.03
Note 41/Net Movement in Regulatory Deferral Account Balances-Incomes/(expenses) (net of tax)
Note 42/Other Comprehensive Income
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
(` in Crore)
(` in Crore)
223
A. Employees Remuneration & Benefits Salarieswagesallowancesandbenefits 424.68 486.71Contribution to provident and other funds 53.81 29.97 Welfareexpenses 31.31 27.72 Total (A) 509.80 544.40 B. Other Expenses Repair and maintenance 7.36 5.60 Power charges 5.11 2.47 Less: Recovery from contractors 1.87 0.74 3.24 1.73 ExpensesonDieselGeneratingsets 0.29 0.45 Watercharges 0.34 -Training&RecruitmentExpenses 0.11 0.98Legalexpenses 1.86 1.33 Professional charges 3.58 5.40 Consultancyexpenses 0.31 0.15 Communicationexpenses 2.65 2.13 Travelling&Conv.exp.(IncludingForeignTravel) 28.54 27.03 Tenderexpenses 6.26 10.30 Less: Sale of tenders 1.44 1.64 4.82 8.66Payment to Auditors 0.13 0.04 Advertisement and Publicity 0.15 0.97 Printing and stationery 0.73 0.69 Books, Periodicals and Journals 0.04 0.01 EDP hire and other charges 0.18 0.22 Entertainmentexpenses 0.35 0.40 Brokerage and commission - 0.03 Rent 2.68 3.27 Miscellaneousexpenses 4.68 11.72 HorticultureExpenses 0.90 0.64 SecurityExpenses 16.67 19.28Hiring of Vehicles 23.18 23.54 Insurance 0.01 0.03 Ratesandtaxes 3.27 5.82Bandwidthcharges,darkfibreleasecharges(Telecom) 0.08 0.13 TransitAccomodationExpenses 1.30 0.93 Less:IncomefromTransitAccomodation - - 1.30 0.93 Total (B) 107.45 121.18 C. Depreciation/Amortisation 10.29 12.76 Total (C) 10.29 12.76
Note 43/ Expenditure during Construction (Net)
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
(` in Crore)
Standalone Financial Statements
224
D. Finance Costs a)Interestandfinancechargesonfinancialliabilitiesatamortisedcost Government of India
Indian Banks and Financial Institutions 405.33 301.29 Foreign Banks and Financial Institutions 256.27 131.59 Secured/UnsecuredRedeemableBonds 364.17 882.92 Foreign Currency Bonds 2.70 5.17 Others 54.87 44.83
1083.34 1365.80b) Otherfinancecharges
Commitment charges 5.62 8.33 Guarantee fee 108.34 71.61 Others 45.97 26.91
159.93 106.85c) FERV adjustment to borrowing cost (124.89) 173.00 Total (D) 1118.38 1645.65 E. Less: Other Income Interest from
Indian banks - 11.82 Contractors 32.77 48.87
32.77 60.69 Miscellaneous income 57.14 44.97 Total (E) 89.91 105.66 F. Less: Other Comprehensive Income Other Comprehensive Income 2.34 10.94 Total (F) 2.34 10.94 Grand Total (A+B+C+D-E-F) 1653.67 2207.39
Note 43/ Expenditure during Construction (Net) (Contd.)
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
(` in Crore)
44. Cashequivalentofdeemedexportbenefitsavailedof 209.99croreinrespectofsupplieseffectedforEastSouthInterConnector-IITransmissionProject(ESI)andSasaramTransmissionProject(STP),werepaidtotheCustomsandCentralExciseAuthoritiesinaccordancewithdirectionfromMinistryofPower(GOI)during2002-03duetonon-availabilityofWorldBankloanfortheentiresuppliesinrespectofESIprojectandforthesuppliespriortoMarch2000inrespectofSTPprojectandthesamewascapitalisedinthebooksofaccounts.Thereafter,WorldBankhadfinancedboththeESIprojectandSTPprojectasoriginallyenvisagedandtheybecameeligiblefordeemedexportbenefits.Consequently,thecompanyhaslodgedclaimswiththeCustomsandExciseAuthorities.
InthisregardtheCumulativeamountreceivedandde-capitalizedupto31stMarch,2019is` 12.12 crore (Previous Year ` 12.12 crore). The company continued to show the balance of `197.87croreasat31stMarch,2019(PreviousYear`197.87crore)inthecapitalcostoftherespectiveassets/projectspendingreceiptofthesamefromCustomsandExciseAuthorities.
45. a) Balances of Trade Receivables and recoverable shown under Assets and Trade and Other Payables shown under Liabilities include balancessubjecttoconfirmation/reconciliationandconsequentialadjustmentsifany.Howeverreconciliationsarecarriedoutonongoingbasis.
b) Intheopinionofthemanagement,thevalueofanyoftheassetsotherthanProperty,PlantandEquipmentandnon-currentinvestmentson realization in the ordinary course of business will not be less than the value at which they are stated in the Balance Sheet.
46. a) Impact of application of Ind AS 115 ‘Revenue from Contracts with Customers’ EffectiveApril1,2018,thecompanyhasappliedIndAS115whichestablishesacomprehensiveframeworkfordeterminingwhether,
howmuchandwhenrevenueistoberecognised.IndAS115replacesIndAS18RevenueandIndAS11ConstructionContracts.The company has applied Ind AS 115 retrospectively only to contracts that are not completed as at the date of initial application, with thecumulativeeffectofinitialapplicationrecognisedasanadjustmenttotheopeningbalanceofGeneralReserveatApril1,2018.InaccordancewiththetransitionguidanceinIndAS115hasonlybeenappliedtocontractsthatareincompleteasatApril1,2018.
Thecompany’saccountingpoliciesforitsrevenuestreamsaredisclosedinNote2.19.Apartfromeffectofsignificantfinancingcomponentin telecomcontracts, theapplicationof IndAS115doesnothaveany significant impact on thefinancial positionand/or financialperformanceofthecompany.TheamountofadjustmentforeachlineitemoffinancialstatementaffectedbytheapplicationofIndAS115 is as given below.
225
Impactsonassets,liabilitiesandequityasatApril1,2018.(` in Crore)
Particulars As previously reported Ind AS 115 adjustments As restatedContract liabilities 1475.79 (104.37) 1371.42OtherEquity–GeneralReserve 49183.37 104.37 49287.74
ImpactsonStatementofProfitandLossfortheperiodendedMarch31,2019
DuetoImplementationofIndAS115,RevenuefromOperationincreasedby₹88.29Crore,FinanceCostincreasedby₹37.18Crore,OtherExpensesincreaseby₹7.06CroreandProvisionfortaxincreasedby₹9.50Crore.ProfitafterTaxincreasedby₹34.55croresduringtheyear.
b) Formilestonebasedcontracts(consultancycontracts),followingamountrelatestounsatisfiedperformanceobligations-(` in Crore)
Particulars Year ended March 31, 2019
Year ended March 31, 2018
Transaction price related to unsatisfied (or partially satisfied) performanceobligation
2110.24 2850.96
Theseperformanceobligationsareexpectedtobesatisfiedwithin 5 Years 4 Years
c) Thefollowingtabledisclosesthemovementinunbilledrevenueduringtheyearended31March,2019and31March,2018.(` in Crore)
Particulars Year ended March 31, 2019
Year ended March 31, 2018
Balance at the beginning 4087.40 2515.81Add: Revenue recognised during the period 5140.34 3646.35Less: Invoiced during the period 2660.39 2074.76Less:Impairment/reversalduringtheperiod 105.71 -Add:Translationgain/(Loss) - -Balance at the end 6461.64 4087.40
d) Thefollowingtabledisclosesthemovementincontractliabilityduringtheyearended31March2019and31March2018.(` in Crore)
Particulars Year ended March 31, 2019 Year ended March 31, 2018Balance at the beginning 1371.42 1502.10Add: Advance billing during the period 1021.17 975.43Less: revenue recognised during the period
a) From contract liability as at beginning of the periodb) From contract liability recognised during the period
497.26147.62
870.05236.13
Add:Translationgain/(Loss) 0.13 0.07Balance at the end 1747.84 1371.42
e) Theentitydetermines transactionpricebasedonexpectedvaluemethodconsidering itspast experiencesof refundsor significantreversalsinamountofrevenue.Inestimatingsignificantfinancingcomponent,managementconsidersthefinancingelementinbuiltinthetransactionpricebasedonimputedrateofreturn.ReconciliationofContractedPricevis-a-visrevenuerecognizedinprofitorlossstatementisasfollows-
(` in Crore)Particulars Year ended March 31, 2019 Year ended March 31, 2018Contracted price 33645.51 29479.06Add/(Less)-Discounts/rebatesprovidedtocustomer (209.11) (211.26)Add/(Less)-Performancebonus 185.84 327.41Add/(Less)-Adjustmentforsignificantfinancingcomponent 88.29 -Add/(Less)-Otheradjustments 408.59 169.38Revenuerecognizedinprofitorlossstatement 34119.12 29764.59
Standalone Financial Statements
226
f) A provision of 390.36crorehasbeencreatedinthecurrentfinancialyearagainsttradereceivablesandunbilleddebtorsoutstandingason31.03.2018fromafewcustomersandrevenuefromtransmissionandsurchargethereonamountingto`317.68crorehasnotbeen recognised during the year due to uncertainty of collection of consideration in line with Ind AS 115 ‘Revenue from Contracts with Customers’.
47. The company has been entrusted with the responsibility of billing collection and disbursement (BCD) of the transmission charges on behalf of all the ISTS (Interstate transmission System) licensees through the mechanism of the POC (Point of Connection) charges introduced w.e.f.01stJuly,2011whichinvolvesbillingbasedonapproveddrawl/injectionofpowerinplaceofoldmechanismbasedonMegaWattallocationofpowerbyMinistryofPower.Bythismechanism,revenueofthecompanywillremainunaffected.
SomeofthebeneficiariesaggrievedbythePOCmechanismhavepreferredappealbeforevariousHighCourtsofIndia.Allsuchappealshave been transferred to Delhi High Court as per order of the Supreme Court on the appeal preferred by the company and company has alsorequestedfordirectingagitatingstatestopayfulltransmissionchargesaspernewmethodologypendingsettlementofthematter.HonourableDelhiHighCourthasdirectedalltheabovebeneficiariestoreleasepaymentsandaccordinglythebeneficiarieshavestartedmaking payments as per the said directions.
48. (i) FERV Loss of ` 1441.50 crore (Previous Year Loss of ` 146.36 crore ) has been adjusted in the respective carrying amount of Property,PlantandEquipment/CapitalworkinProgress(CWIP)/LeaseReceivables
(ii) FERV Loss of ` 225.31 crore (Previous Year Loss of `161.76crore)hasbeenrecognisedintheStatementofProfitandLoss.49. Borrowing cost capitalised during the year is 1118.38crore(previousyear 1645.65 crore) in the respective carrying amount of Property,
PlantandEquipment/CapitalworkinProgress(CWIP)asperIndAS23‘BorrowingCosts’.50. Basedoninformationavailablewiththecompany,therearefewsuppliers/serviceproviderswhoareregisteredasmicro,smallormedium
enterprise under The Micro, Small and Medium Enterprises Development Act,2006 (MSMED Act, 2006). Information in respect of micro andsmallenterprisesasrequiredbyCompaniesAct2013andMSMEDAct,2006isgivenasunder:
(` in Crore)Sr. No.
Particulars Trade Payables Others31st March,
201931st March,
201831st March,
201931st March,
20181. Principal amount and interest due thereon remaining
unpaid to any supplier as at end of each accounting year:PrincipalInterest
33.270.05
2.33Nil
22.30Nil
12.88Nil
2 The amount of Interest paid by the buyer in terms of section 16 of the MSMED Act, 2006 along with the amount of the payment made to the supplier beyond the appointed day during each accounting year
Nil Nil Nil Nil
3 The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without addingtheinterestspecifiedunderMSMEDAct,2006
0.01 Nil Nil Nil
4 The amount of interest accrued and remaining unpaid at the end of each accounting year
0.04 Nil Nil Nil
5 The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditureundersection23oftheMSMEDAct2006
Nil Nil Nil Nil
51. Disclosure as per IND AS 17 ‘Leases’
a) Finance Leases:-
TheCompanyhasclassifiedandaccountedforthearrangementsforstatesectorULDCassetsandbilateralassetsasfinanceleasesbasedontheprinciplesenunciatedinAppendixCofIndAS17,‘Leases’.AgreementsforStateSectorULDCareforaperiodof15yearsandBilateralLineAssetswiththebeneficiaryarefortheperiodasspecifiedinCERCRegulations.
OtherNon-CurrentFinancialAssetsandOtherCurrentFinancialAssetsincludeleasereceivablesrepresentingthepresentvalueoffutureleaserentalsreceivableonthefinanceleasetransactionsenteredintobythecompanywiththeconstituentsinrespectofStateSectorULDCandBilateralLineAssets.DisclosurerequirementsofIndAS17‘Leases’notifiedundertheCompaniesAct,2013are given as under:
(i) Thereconciliationoftheleasereceivables(asperprojectcostdatasubmittedto/approvedbytheCERCfortarifffixation)is as under:
227
(` in Crore)
Particulars 31st March, 2019
31st March, 2018
Grossvalueofassetsacquiredandleasedatthebeginningoftheyear 1627.20 1581.71
Add Adjustmentforgrossvalueofassetsacquiredpriortothebeginningoftheyear (0.52) (23.84)
Revised Gross value of the assets at the beginning of the year 1626.68 1557.87
Less Capital recovery provided up to the beginning of the year 1050.19 970.59
Add Capitalrecoveryforassetsacquiredpriortothebeginningoftheyear 30.86 19.50
Revised Capital recovery provided up to the beginning of the year 1081.05 990.09
Capital recovery outstanding as on 31stMarchoflastfinancialyear 545.64 567.78
Add Grossvalueofassetsacquiredandleasedduringcurrentfinancialyear 43.73 69.32
Less Capital recovery for the current year 44.88 60.08
Lease receivables at end of the year 544.49 577.02
(ii) Detailsofgrossinvestmentinlease,un-earnedfinanceincomeandpresentvalueofminimumleasepaymentsreceivablesattheendoffinancialyearisgivenasunder:
(` in Crore)
Particulars 31st March, 2019 31st March, 2018
Gross investment in Lease 1597.41 1742.24
Un-earnedFinanceIncome 1052.92 1165.22
Present value of Minimum Lease Payment (MLP) 544.49 577.02
(iii) The value of contractual maturity of such leases is as under:(` in Crore)
Particulars Gross Investment in Lease Present Value of MLPs
As at 31st March, 2019
As at 31st March, 2018
As at 31st March, 2019
As at 31st March, 2018
Not later than one year 132.39 130.31 47.50 46.45
Laterthanoneyearandnotlaterthanfiveyears 502.22 492.86 173.54 170.38
Laterthanfiveyears 962.80 1119.07 323.45 360.19
Total 1597.41 1742.24 544.49 577.02
(iv) Therearedifferencesinbalanceleasereceivableasatyearendasperaccountsandtariffrecordsonaccountof:
(a) Undischargedliabilitiesamountingto`74.43 crore (Previous Year `52.19 crore). Such cost become part of project cost only on discharge of such liabilities.
(b) UnamortizedFERVonloansincludedinleasereceivableamountingto`17.23 crore (Previous Year `17.15 crore). Such FERV areallowedtoberecoveredaspartoftariffonactualpaymentbasis.
Operating leases:-
Thecompany’ssignificantleasingarrangementsareinrespectofoperatingleasesofpremisesforresidentialuseofemployees,officesandguesthouses/transitcampswhichareusuallyrenewableonmutuallyagreedtermsbutarenotnon-cancellable.Employeebenefitsexpenseinclude 12.91 crore (previous year 26.12 crore) towards lease payments, net of recoveries, in respect of premises for residential use of employees. Lease payments of `13.95 crore (previous year `14.60crore)inrespectofpremisesforofficesandguesthouse/transitcampsareshownundertheheadRentinNote40-Otherexpenses.
51. Disclosure as per IND AS 17 ‘Leases’ (Contd.)
Standalone Financial Statements
228
52. Foreign Currency Exposure Not hedged by a derivative instrument or otherwise
Particulars Amount in Foreign Currency (in Crore) Amount (` in Crore)31st March, 2019 31st March, 2018 31st March, 2019 31st March, 2018
Borrowings USD 482.67 437.34 33676.03 28632.86EURO 51.73 49.44 4078.18 4037.84SEK 249.45 280.65 1883.31 2245.21JPY 2345.42 163.59 1487.70 101.95
Interest accrued but not due thereon including Agency Fee, Commitment Fee &otherCharges
USD 3.68 2.36 256.90 154.69EURO 0.22 0.20 17.22 15.94SEK 1.09 1.12 8.22 8.97JPY 3.94 0.41 2.50 0.26
Trade Payables/deposits and retentionmoney
USD 7.16 11.59 499.76 758.80EURO 1.05 1.53 82.74 124.96SEK - 17.81 - 142.48CHF 0.03 0.04 2.36 2.78GBP 1.83 1.94 167.90 180.67JPY - 1.04 - 0.65
Trade receivables and Bank balances USD 0.17 0.04 11.86 2.62NPR 1.65 - 1.03 -EURO - - - -FJI 0.002 - 0.07 -
Amount of contracts remaining to be executed
USD 13.61 14.19 949.43 929.02EURO 7.56 27.82 596.03 2272.06SEK 31.91 162.92 240.92 1303.36CHF - - - -GBP 2.68 8.95 245.89 833.51JPY 216.16 744.28 137.11 463.84
53. Disclosures relating to Regulatory Deferral Account Balances i) Nature of rate regulated activities Thecompanyismainlyengagedinthebusinessoftransmissionofpower.Thetarifffortransmissionofpowerisdeterminedbythe
CERCthroughtariffregulations.ThetariffisbasedoncapitalcostadmittedbyCERCandprovidesfortransmissionchargesrecoveryofannualfixedcostconsistingofReturnonequity,Interestonloancapital,Depreciation,interestonworkingcapitalandOperation&Maintenanceexpenses.
ii) Recognition and measurement FERVarisingduringtheconstructionperiodforsettlement/translationofmonetaryitems(otherthannon-currentloans)denominated
in foreign currency to the extent recoverable/payable to the beneficiaries as capital cost as per CERC Tariff Regulations areaccounted as Regulatory Deferral Account Balances. In respect of long term foreign currency loan drawn on or after 1st April, 2016,exchangedifferencetotheextentrecoverableasperCERCTariffRegulationsarerecognisedasRegulatoryDeferralAccountBalances.Thecompanyexpectstorecovertheseamountsthroughdepreciationcomponentofthetariffoverthelifeoftheassetorasexchangeratevariationonrepaymentoftheloan.
The tariffnorms for theblockperiod2014-2019notifiedby theCentralElectricityRegulatoryCommission(CERC) provide forgrossingupofthereturnonequitybasedoneffectivetaxrateforthefinancialyearbasedontheactualtaxpaidduringtheyearonthetransmissionincome.Accordingly,deferredtaxprovidedduringtheyearended31stMarch,2019onthetransmissionincomeisaccountedas‘DeferredAssetsagainstDeferredTaxLiability’.DeferredAssetsagainstDeferredTaxLiabilityfortheyearwillbereversedinfutureyears(includingtaxholidayperiod)whentherelateddeferredtaxliabilityformsapartofcurrenttax.
Matterregardingpresentationof‘DeferredAssetsagainstDeferredTaxLiability’inBalanceSheetandStatementofProfitandlosswasreferredtoExpertAdvisoryCommittee(EAC)ofInstituteofCharteredAccountantofIndia,andasperopinionreceivedduringtheyear‘DeferredAssetsagainstDeferredTaxLiability’isclassifiedas‘RegulatoryDeferralAccountBalance”.
The company has recognized an amount of ` 19.67 crore (Previous Year ` 11.31 crore) on account of pay revision as recoverable fromthebeneficiariesinsubsequentperiodsunderRegulatoryDeferralAccountBalances.ThesebalancesaretobeadjustedintheyearinwhichtheybecomerecoverablefrombeneficiariesasperCERC.Amountofregulatorydeferralaccountbalancesisonundiscounted basis.
229
iii) Riskassociatedwithfuturerecovery/reversalofregulatorydeferralaccountbalances (a) regulatory risk on account of changes in regulations. (b) other risks including currency or other market risks, if any.
Anychange in theTariff regulationsbeyond thecurrent tariffperiodendingon31stMarch,2019mayhavean impacton therecovery of Regulatory Deferral Account Balances.
TheRegulatoryDeferralAccountBalances(assets)recognizedinthebookstoberecoveredfromthebeneficiariesinfutureperiodsare as follows:
(` in Crore)Particulars 31st March, 2019 31st March, 2018A. Opening Balance * 11304.22 7975.80B.Addition/(deduction)duringtheyear (3220.95) 3328.42C.Amountcollected/refundedduringtheyear NIL NILD.RegulatedIncome/(Expense)recognizedinthestatementofProfitandLoss (3220.95) 3328.42E. Closing Balance 8083.27 11304.22F.TaxonRegulatedIncome/(Expense)recognizedinthestatementofProfitandLoss (694.08) 44.23
* Refer note 54 for change in Opening balance for regulatory deferral account balances.
54. Reclassification of Prior Year Presentation AsperopinionofEACreceivedduringtheyear‘DeferredAssetsagainstDeferredTaxLiability’isbeingclassifiedas‘RegulatoryDeferral
AccountBalance’whichwasearliershownasdeductionfrom‘DeferredTaxLiability’.Prioryearamountshavealsobeenreclassifiedforconsistency with the current year presentation in consonance with principles of Ind AS 1 ‘ Presentation of Financial Statements’. In view ofabovereclassificationinBalanceSheet,‘NetDeferredTaxLiability’hasincreasedby`10989.39croresasat31stMarch2018and` 7868.20croresasat1stApril2017respectively.‘RegulatoryDeferralAccountBalances’hasalsoincreasedby`10989.39croresasat31stMarch2018and`7868.20croresasat1stApril2017respectively.InStatementofProfitandLossfortheyearended31stMarch2018‘DeferredTaxExpense’hasincreasedby` 3121.19 crores with a corresponding increase in ‘Net Movement in Regulatory Deferral Account Balances’ by `3121.19crores.TaxonNetMovementinRegulatoryDeferralAccountBalancesandOtherComprehensiveIncomehasalsobeenreclassifiedfromCurrentTax.DuetoabovereclassificationreportedProfitafterTax(PAT)hasincreaseform`8238.96croreto` 8244.65croreandOtherComprehensiveIncomedecreasedfrom` 13.72 crore to `8.03crore.HoweverthesereclassificationshavenoeffectonthereportedTotalComprehensiveIncomeandEquityofPreviousyears.AreconciliationofEquity,ProfitaftertaxandOtherComprehensive Income is given below:
Reconciliationofequityasat31stMarch,2018and1stApril,2017(` in Crore)
Particulars 31st March, 2018 31st March, 2017Totalequity(shareholder’sfunds)asperpreviousyearFinancialStatements 54414.96 49807.25Adjustments Nil NilTotalequityasperrestatedFinancialStatement 54414.96 49807.25
ReconciliationofProfitaftertaxfortheyearended31stMarch,2018(` in Crore)
Particulars 31st March, 2018ProfitafterTaxasperpreviousyearFinancialStatements 8238.96AdjustmentsLess:IncreaseinDeferredTaxduetoreclassification 3121.19Add: Increase in Net Movement in Regulatory Deferral Account Balances 3121.19Less:TaxonNetMovementinRegulatoryDeferralAccountBalancestransferredfromCurrentTax 44.23Add:TransferredtoTaxonNetMovementinRegulatoryDeferralAccountBalancesfromCurrentTax 44.23Add:TransferredtoTaxonOtherComprehensiveIncomefromCurrentTax 5.69Total adjustments 5.69ProfitafterTaxasperrestatedFinancialStatement 8244.65
ReconciliationofOtherComprehensiveIncomefortheyearended31stMarch,2018(` in Crore)
Particulars 31st March, 2018Other Comprehensive Income as per previous year Financial Statements 13.72AdjustmentsLess:TransferredtoTaxonOtherComprehensiveIncomefromCurrentTax 5.69Total adjustments (5.69)Other Comprehensive Income as per restated Financial Statement 8.03
53. Disclosures relating to Regulatory Deferral Account Balances (Contd.)
Standalone Financial Statements
230
55. Disclosure as required by Regulation 34 (3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:
A. Loans and Advances in nature of Loans: 1. To Subsidiary Companies and Joint Ventures
(` in Crore)Particulars Outstanding balance as at Maximum amount
outstanding during31st M arch,
201931st March,
201831st March,
201931st March,
2018SubsidiaryPowergid NM Transmission Limited 1085.90 924.30 1085.90 924.30Powergid Vizag Transmission Limited 614.50 708.43 708.43 748.83PowergridUnchaharTransmissionLimited 46.32 55.92 55.92 55.92Powergrid Kala Amb Transmission Limited 225.28 246.84 248.36 246.84Powergrid Jabalpur Transmission Limited 1289.58 967.00 1289.58 967.00PowergridWaroraTransmissionLimited 1682.00 1657.87 1754.55 1657.87Powergrid Parli Transmission Limited 1475.50 1476.58 1531.52 1476.58Powergrid Southern Interconnector Transmission System Limited
2707.56 1823.62 2707.56 1823.62
Powergrid Mednipur Jeerat Transmission Limited 1269.78 252.57 1269.78 252.57Powergrid Mithilanchal Transmsission Limited 203.53 - 203.53 -Powergrid Varanasi Transmission System Limited 202.19 - 202.19 -Powergrid Jawaharpur Firozabad Transmission Limited 4.60 N.A 4.60 N.AJoint VenturesNational High Power Test Laboratory Private Limited 6.00 6.00 6.00 6.00Teestavalley Power Transmission Limited 77.12 - 77.12 -Total 10889.86 8119.13 11145.04 8159.53
2. Tofirms/companiesinwhichdirectorsareinterested : NIL B. Investment by the loanee (as detailed above) in the shares of Power Grid Corporation of India Ltd: NIL
56. Corporate Social Responsibility Expenses (CSR) As per Section 135 of the Companies Act, 2013 along with Companies (Corporate Social Responsibility Policy) Rules, 2014 read with DPE
guidelinesnoF.No.15(13)/2013-DPE(GM),theCompanyisrequiredtospend,ineveryfinancialyear,atleasttwopercentoftheaveragenetprofitsoftheCompanymadeduringthethreeimmediatelyprecedingfinancialyearsinaccordancewithitsCSRPolicy.ThedetailsofCSRexpensesfortheyearareasunder:-
(` in Crore)Particulars For the Year ended
31st March, 2019For the Year ended
31st March, 2018A.Amountrequiredtobespentduringtheyear 186.72 157.94B.AmountspentonCSR– (i)Constructionoracquisitionofanyasset
44.26 30.84
(ii) on Purpose other than (i) above 151.26 127.15C.Shortfall/(Excess)amountappropriatedfromCSRReserve (8.79) (0.05)D.Break-upoftheamountspentonCSR(Note40)1.EducationandSkillDevelopmentexpenses 14.50 15.122.EcologyandEnvironmentExpenses 16.71 8.103.HealthandSanitationexpenses 102.79 70.754.Sports,ArtandCultureexpenses 2.55 16.375. Protection of national heritage, art and culture including restoration of building
and sites of historical importance 8.50 9.43
6. Other CSR activities 43.30 31.417.Salaries,wagesandotherbenefitsofCompany’sownCSRpersonnellimitedto
5%oftotalamountrequiredtobespentonCSR7.17 6.80
TOTAL 195.52 157.99Amount spent on CSR
E. Total amount of `195.52 crore (Previous year `157.99 crore), `188.28crore(Previousyear ` 154.53 crore) has been spent in cash and the balance amount of ` 7.24 crore (Previous year ` 3.46 crore) is yet to be paid in cash as at 31st March, 2019
231
57. Fair Value Measurements (` in Crore)
Financial Instruments by category31st March, 2019 31st March, 2018
FVOCI Amortised cost FVOCI Amortised costFinancial Assets InvestmentsEquityInstruments-PTCIndiaLimited(12000006 shares of ` 10 each)*
88.14 - 104.88
EnergyEfficiencyServicesLimited (37704350 shares of ` 10 each)**
41.70 - 23.90 -
Trade Receivables - 4628.74 - 3638.96Loans - 11125.86 - 8300.00Cash&cashEquivalents - 3643.14 - 1516.21Bank Balance - 852.37 - 840.07Other Financial AssetsCurrent - 6853.20 - 4869.92Non-Current - 4384.90 - 680.50Total Financial assets 129.84 31488.21 128.78 19845.66Financial LiabilitiesBorrowings - 149477.78 - 134660.62Trade Payables - 364.11 - 240.34Other Financial LiabilitiesCurrent - 8747.91 - 10265.31Non-Current - 3897.44 - 459.60 Total financial liabilities - 162487.24 - 145625.87
*InvestmentinPTCLtd.beingalistedequityinstrumentisaLevel1fairvaluehierarchy. **InvestmentinEnergyEfficiencyServicesLimitedisaLevel2fairvaluehierarchy. Thissectionexplainsthejudgementsandestimatesmadeindeterminingthefairvaluesofthefinancialinstrumentsthataremeasuredat
amortisedcostandforwhichfairvaluesaredisclosedinthefinancialstatements.Toprovideanindicationaboutthereliabilityoftheinputsusedindeterminingfairvalue,thecompanyhasclassifieditsfinancialinstrumentsintothethreelevelsprescribedundertheaccountingstandard.Anexplanationofeachlevelfollowsunderneaththetable.
(` in Crore)
Assets and liabilities which are measured at amortised cost for which fair values are disclosed
Level 1 Level 2 Level 3 Total
At 31st March, 2019Financial AssetsLoansLoans to Subsidiaries - 10662.48 - 10662.48Loans to Joint Ventures - 83.48 - 83.48Loans to employees - 224.22 - 224.22Total Financial Assets - 10970.18 - 10970.18Financial LiabilitiesBorrowings - 147699.95 - 147699.95
Deposits/retentionmoneyfromcontractorsandothers - 3918.78 - 3918.78Total financial liabilities - 151618.73 - 151618.73
Standalone Financial Statements
232
(` in Crore)Assets and liabilities which are measured at amortised cost fo r which fair values are disclosed
Level 1 Level 2 Level 3 Total
At 31st March, 2018Financial AssetsLoansLoans to Subsidiaries - 8074.33 - 8074.33Loans to Joint Ventures - 6.00 - 6.00 Loans to employees - 183.76 - 183.76Total Financial Assets - 8264.09 - 8264.09
Financial LiabilitiesBorrowings - 139882.65 - 139882.65Deposits/retentionmoneyfromcontractorsandothers - 419.04 - 419.04Total financial liabilities - 140301.69 - 140301.69
Level 1:Level1hierarchyincludesfinancialinstrumentsmeasuredusingquotedprices.Thisincludeslistedequitybondswhicharetradedinthestockexchanges,valuedusingtheclosingpriceasatthereportingperiod.
Level 2:Thefairvalueoffinancialinstrumentsthatarenottradedinanactivemarket(forexample,tradedbonds)isdeterminedusingvaluationtechniqueswhichmaximisetheuseofobservablemarketdataandrelyaslittleaspossibleonentity-specificestimates.Ifallsignificantinputsrequiredtofairvalueaninstrumentareobservable,theinstrumentisincludedinlevel2.
Level 3:Ifoneormoreofthesignificantinputsisnotbasedonobservablemarketdata,theinstrumentisincludedinlevel3.Thisisthecaseforunlistedequitysecurities,contingentconsiderationandindemnificationassetsincludedinlevel3.
There are no transfers between levels 1 and 2 during the year. The company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.
Valuation technique used to determine fair value Specificvaluationtechniquesusedtovaluefinancialinstrumentsinclude: • theuseofquotedmarketpricesordealerquotesforsimilarinstruments • thefairvalueofEnergyEfficiencyServicesLimitedhasbeendeterminedbymakingqualitativeadjustmenttotradingmultiplessuch
asP/E,EV/EBITDAofcomparablelistedprices.ThesamehasbeenincludedinLevel2fairvaluehierarchy. • thefairvalueoftheremainingfinancialinstrumentsisdeterminedusingdiscountedcashflowanalysis. Alloftheresultingfairvalueestimatesareincludedinlevel2apartfromequityinstrumentsofPTCIndiaLimitedwhichisincludedinLevel
1 fair value hierarchy. Fairvalueoffinancialinstrumentshasbeendeterminedbyanindependentvaluer. FairValueoffinancialassetsandliabilitiesmeasuredatamortisedcost
(` in Crore)Particulars 31st March, 2019 31st March, 2018
Carrying Amount
Fair value Carrying Amount
Fair value
Financial AssetsLoansLoans to Subsidiaries 10806.74 10662.48 8113.13 8074.33Loan to Joint Venture 83.12 83.48 6.00 6.00Loans to employees 235.99 224.22 180.87 183.76
Total Financial Assets 11125.85 10970.18 8300.00 8264.09Financial LiabilitiesBorrowings 149477.78 147699.95 134660.62 139882.65Deposits/retentionmoneyfromcontractorsandothers 3897.44 3918.78 459.60 419.04Total financial liabilities 153375.22 151618.73 135120.22 140301.69
Thecarryingamountsoftradereceivables,tradepayables,cashandcashequivalentsandothercurrentfinancialliabilitiesareconsideredtobethesameastheirfairvalues,duetotheirshort-termnature.
Forfinancialassetsthataremeasuredatfairvalue,thecarryingamountsareequaltothefairvalues.
57. Fair Value Measurements (Contd.)
233
58. Related party Transactions (a) Subsidiaries
Name of entity Place of business/country of incorporation
Proportion of Ownership Interest31st March,
2019 31st March,
2018 Powergrid Vizag Transmission Limited India 100% 100%Powergrid NM Transmission Limited India 100% 100%PowergridUnchaharTransmissionLimited India 100% 100%Powergrid Kala Amb Transmission Limited India 100% 100%Powergrid Jabalpur Transmission Limited India 100% 100%
PowergridWaroraTransmissionLimited India 100% 100%Powergrid Parli Transmission Limited India 100% 100%Powergrid Southern Interconnector Transmission System Limited
India 100% 100%
Powergrid Vemagiri Transmission Limited India 100% 100%Powergrid Medinipur Jeerat Transmission Limited India 100% 100%Powergrid Mithilanchal Transmission Limited (erstwhile ERSS XXI Transmission Limited)
India 100% 100%
Powergrid Varanasi Transmission System Limited (erstwhile WR-NRPowerTransmissionLimited)
India 100% 100%
Powergrid Jawaharpur Firozabad Transmission Limited Limited (erstwhileJawaharpurFirozabadTransmissionLimited)#
India 100% Not Applicable
#100% equity in Powergrid Jawaharpur Firozabad Transmission Limited acquired from REC Transmission Projects Limited on 21stDecember,2018.
(b) Joint Ventures
Name of entity Place of business/country of incorporation
Proportion of Ownership Interest31st March,
2019 31st March,
2018 Powerlinks Transmission Limited India 49% 49%Torrent Power Grid Limited India 26% 26%Jaypee Powergrid Limited India 26% 26%
Parbati Koldam Transmission Company Limited India 26% 26%TeestavalleyPowerTransmissionLimited## India 28.23% 26%
North East Transmission Company Limited India 26% 26%National High Power Test Laboratory Private Limited India 20% 20%Bihar Grid Company Limited India 50% 50%KalingaBidyutPrasaranNigamPrivateLimited### India 50% 50%Cross Border Power Transmission Company Limited India 26% 26%RINLPowergridTLTPrivateLimited#### India 50% 50%Power Transmission Company Nepal Ltd Nepal 26% 26%
##POWERGRID&TeestaUrjaLtdare theJointventurepartners inTeestavalleyPowerTransmissionLimited&holds26%&74%equity,respectivelyasperShareholdingagreement.OncallofadditionalequitybyTeestavalleyPowerTransmissionlimited,POWERGRIDcontributed their share amounting 11.28crorewhiletheotherJVpartnerhasnotyetcontributedtheirshareofmoneyason31.03.2019.Consequently,theholdingofPOWERGRIDincreasedto28.23%ason31.03.2019against26%providedinshareholdingagreement.
###POWERGRID’sBoardofDirectorsinitsmeetingheldon16thaugust2017accordedapprovalforinitiatingprocedureforwindingup/removalofthenameofKalingaBidyutPrasaranNigamPrivateLtdunderfasttrackExitmodeofRegistrarofCompanies(ROC).
Standalone Financial Statements
234
####POWERGRID’sBoardofDirectors in itsmeetingheldon1stMay2018accordedinprincipleapprovaltocloseRINLPowergridTLT Private Limited and seek consent of other JV Partner Rashtriya Ispat Nigam Limited. Accordingly Provision for diminution in value of investment has been made.
(c) Key Managerial Personnel Whole Time Directors
Name Designation
Shri I.S. Jha ChairmanandManagingDirector(CMD)ceasedtobeChairman&ManagingDirectorw.e.f 21.01.2019
Shri Ravi P. Singh Director (Personnel) & Additional Charge of Chairman &Managing Director w.e.f21.01.2019 to 20.04.2019
Shri K. Sreekant Director (Finance) Ms. Seema Gupta Director (Operations)
Shri. Prabhakar Singh Director(Projects)retiredon30.06.2018Shri Rajeev Kumar Chauhan Director(Projects)w.e.f23.08.2018
Independent DirectorsName Designation
Shri Jagdish Ishwar Bhai Patel Independent DirectorShri Tse Ten Dorji Independent DirectorShri Manoj Kumar Mittal Independent Director
Shri Sunil Kumar Sharma IndependentDirectorw.e.f23.07.2018Smt. A.R. Mahalakshmi IndependentDirectorw.e.f26.07.2018
Government Nominee DirectorsName Designation
Ms. Bharati Government Nominee Director ceased to be Director w.e.f 13.02.2019Shri Vivek Kumar Dewangan GovernmentNomineeDirectorw.e.f26.04.2018Shri Ghanshyam Prasad Government Nominee Director w.e.f 01.03.2019Smt. Divya Tandon Company Secretary
(d) List of Other Related PartiesName of Entity Place of business/country
of incorporationNature of Relationship
Powergrid Employees P.F. Trust India Post-employmentbenefitplanofPowergridPowergrid Self Contributory Superannuation Benefit(Pension)FundTrust
India Post-employmentbenefitplanofPowergrid
Powergrid Employees Gratuity Fund Trust India Post-employmentbenefitplanofPowergridPowergird Employees Post-Retirement MedicalBenefitTrust*
India PostRetirementBenefitplanofPowergrid
*Trustregisteredon1stMay2018.
(e) Government Related Entities The company is controlled by the Government of India (GOI), being a Central Public Sector Enterprise (CPSE) under the Ministry of Power,
withGOIholding55.37%ofequitysharescapitalissuedandpaidup(previousyear56.91%). TheCompanyhasbusiness transactionswithotherentities controlledby theGOI forprocurementof capitalequipment, sparesand
services.Transactionswiththeseentitiesarecarriedoutatmarkettermsonarms-lengthbasisthroughatransparentpricediscoveryprocessagainstopentenders,exceptinafewcasesofprocurementofspares/servicesfromOriginalEquipmentManufacturer(OEM)forproprietaryitems/oronsingletenderbasisduetourgency,compatibilityorotherreasons.Suchsingletenderprocurementsarealsodonethroughaprocessofnegotiationwithpricesbenchmarkedagainstavailablepricedataofsame/similaritems.
Theabovetransactionsareinthecourseofnormalday-to-daybusinessoperationsandarenotconsideredtobesignificantkeepinginview the size, either individually or collectively.
58. Related party Transactions (Contd.)
235
(f) Outstanding balances arising from sales/purchases of goods and services
The following balances are outstanding at the end of the reporting period in relation to transactions with related parties:(` in Crore)
Particulars 31st March, 2019 31st March, 2018Advances /Amount Payables JointVentures&SubsidiaryCross Border Power Transmission Company Limited 10.14 11.12Teestavalley Power Transmission Limited 35.32 30.92North East Transmission Company Limited 7.96 7.86Powerlinks Transmission Limited 2.72 2.01PowergridWaroraTransmissionLimited - 0.14Bihar Grid Company Limited 1.52 -Total payables to related parties 57.66 52.05Amount Receivables Subsidiaries Powergrid Vemagiri Transmission Limited ( fully provided refer Note No 11)
19.40 19.39
Powergrid NM Transmission Limited 67.38 81.21Powergrid Vizag Transmission Limited - 0.16PowergridUnchaharTransmissionLimited 0.09 -Powergrid Kala Amb Transmission Limited - 1.08Powergrid Jabalpur Transmission Limited 4.43 18.27PowergridWaroraTransmissionLimited 3.18 9.32Powergrid Parli Transmission Limited 2.62 14.61Powergrid Southern Interconnector Transmission System Ltd. 9.21 35.73Powergrid Medinipur Jeerat Transmission Limited. 30.48 3.47Powergrid Mithilanchal Transmission Limited 3.22 25.02Powergrid Varanasi Transmission System Limited 6.25 15.21Powergrid Jawaharpur Firozabad Transmission Limited 1.58 -Joint VenturesParbati Koldam Transmission Company Limited 0.38 0.38National High Power Test Laboratory Private Limited 34.02 10.99Bihar Grid Company Limited - 7.50Power Transmission Company Nepal Limited 3.10 1.43Jaypee Powergrid Limited 0.02 0.02Torrent Powergrid Limited 0.01 0.41Total 185.37 244.20Loans to Subsidiaries Powergrid NM Transmission Limited 1085.90 924.30Powergrid Vizag Transmission Limited 614.50 708.43PowergridUnchaharTransmissionLimited 46.32 55.92Powergrid Kala Amb Transmission Limited 225.28 246.84Powergrid Jabalpur Transmission Limited 1289.58 967.00PowergridWaroraTransmissionLimited 1682.00 1657.87Powergrid Parli Transmission Limited 1475.50 1476.58Powergrid Southern Interconnector Transmission System Ltd. 2707.56 1823.62Powergrid Medinipur Jeerat Transmission Limited 1269.78 252.57Powergrid Mithilanchal Transmission Limited 203.53 -Powergrid Varanasi Transmission System Limited 202.19 -Powergrid Jawaharpur Firozabad Transmission Limited 4.60 -Total 10806.74 8113.13
58. Related party Transactions (Contd.)
Standalone Financial Statements
236
Particulars 31st March, 2019 31st March, 2018Loans to Joint VenturesNational High Power Test Laboratory Private Limited 6.00 6.00Teestavalley Power Transmission Limited 77.12 -Total 83.12 6.00Interest Accrued on loan to SubsidiariesPowergrid NM Transmission Limited 38.63 37.78Powergrid Kala Amb Transmission Limited - 0.10Powergrid Jabalpur Transmission Limited 15.26 18.80PowergridWaroraTransmissionLimited - 41.00Powergrid Parli Transmission Limited - 31.65Powergrid Southern Interconnector Transmission System Ltd. 43.77 35.22Powergrid Medinipur Jeerat Transmission Limited 8.24 3.61Powergrid Mithilanchal Transmission Limited 0.30 -Powergrid Varanasi Transmission System Limited 0.70 -Total 106.90 168.16Interest Accrued on loan to Joint VenturesNational High Power Test Laboratory Private Limited - 0.01Teestavalley Power Transmission Limited 1.62 -Total 1.62 0.01Loans to Key Managerial Personnel 0.18 0.11
(` in Crore)Other Related Parties 31st March, 2019 31st March, 2018 Outstanding balances with Employees Benefit TrustPowergrid Employees Gratuity Fund Trust Nil 109.59Total Nil 109.59
(g) Transactions with related parties The following transactions occurred with related parties:
(` in Crore)Particulars For the year ended
31st March, 2019For the year ended 31st
March, 2018Services provided by the CompanyConsultancy IncomeJoint VenturesNational High Power Test Laboratory Private Limited 0.54 -Jaypee Powergrid Limited 1.12 1.01Cross Border Power Transmission Company Limited 2.05 1.60Bihar Grid Company Limited 16.26 13.84Parbati Koldam Transmission Company Limited 0.01 0.05Teestavalley Power Transmission Limited 5.80 0.17North East Transmission Company Limited 5.22 6.53Torrent Powergrid Ltd 1.37 2.85Power Transmission Company Nepal Limited 1.66 -Total 34.03 26.05Consultancy IncomeSubsidiariesPowergridUnchaharTransmissionLimited 0.34 0.67Powergrid Kala Amb Transmission Limited 5.83 4.19Powergrid Jabalpur Transmission Limited 18.33 32.18PowergridWaroraTransmissionLimited 13.77 46.62
58. Related party Transactions (Contd.)(` in Crore)
237
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Powergrid Parli Transmission Limited 14.45 40.91Powergrid Southern Interconnector Transmission System Ltd. 36.65 85.67Powergrid NM Transmission Limited 7.39 7.77Powergrid Vizag Transmission Limited 3.92 4.93Powergrid Mithilanchal Transmission Limited 7.78 6.06Powergrid Medinipur Jeerat Transmission Limited 51.33 21.51Powergrid Varanasi Transmission System Limited 11.17 -Powergrid Jawaharpur Firozabad Transmission Limited 1.45 -Total 172.41 250.51Interest on LoanSubsidiariesPowergrid NM Transmission Limited 80.32 71.48Powergrid Vizag Transmission Limited 56.37 61.55PowergridUnchaharTransmissionLimited 4.29 4.47Powergrid Kala Amb Transmission Limited 18.47 17.46Powergrid Jabalpur Transmission Limited 95.96 37.93PowergridWaroraTransmissionLimited 131.71 99.11Powergrid Parli Transmission Limited 117.12 69.20Powergrid Southern Interconnector Transmission System Ltd. 196.60 72.56Powergrid Medinipur Jeerat Transmission Limited 47.06 4.97Powergrid Mithilanchal Transmission Limited 7.88 -Powergrid Varanasi Transmission System Limited 4.14 -Powergrid Jawaharpur Firozabad Transmission Limited 0.01 -Joint VenturesNational High Power Test Laboratory Private Limited 0.60 0.01Teestavalley Power Transmission Limited 1.80 -Total 762.33 438.74Dividend receivedSubsidiariesPowergrid Vizag Transmission Limited 29.99 20.97PowergridUnchaharTransmissionLimited 4.02 1.95Powergrid Kala Amb Transmission Limited 9.03 -PowergridWaroraTransmissionLimited 27.76 -Powergrid Parli Transmission Limited 15.89 -Joint VenturesPowerlinks Transmission Limited 25.22 38.99Jaypee Powergrid Limited 12.09 6.63Torrent Power Grid Limited 2.34 2.34North East Transmission Company Limited 5.35 4.28Cross Border Power Transmission Company Limited - 4.05Parbati Koldam Transmission Company Limited 11.35 7.80Power Transmission Company Nepal Limited 1.32 1.46Total 144.36 88.47Investments made during the year (Equity)SubsidiariesPowergrid NM Transmission Limited 52.00 50.00Powergrid Kala Amb Transmission Limited 5.00 54.95Powergrid Jabalpur Transmission Limited 173.00 -PowergridWaroraTransmissionLimited 150.00 151.20
58. Related party Transactions (Contd.)(` in Crore)
Standalone Financial Statements
238
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Powergrid Parli Transmission Limited 228.40 -Powergrid Southern Interconnector Transmission System Limited 515.45 -Powergrid Mithilanchal Transmission Limited - 0.05Powergrid Varanasi Transmission System Limited - 0.05Powergrid Jawaharpur Firozabad Transmission Limited 0.05 -Joint VenturesTeestavalley Power Transmission Limited 11.28 -Bihar Grid Company Limited 15.45 7.74RINL Powergrid TLT Pvt. Ltd 0.60 -Power Transmission Company Nepal Limited - 1.62Total 1151.23 265.61Other Related PartiesContribution made during the yearPowergrid Employees P.F. Trust 131.04 93.07PowergridSelfContributorySuperannuationBenefit(Pension)FundTrust 102.41 108.67Powergrid Employees Gratuity Fund Trust 29.56 4.05Total 263.01 205.79Recovery for Deputation of EmployeesJoint VenturesJaypee Powergrid Limited 0.48 0.17Cross Border Power Transmission Company Limited 1.22 0.82North East Transmission Company Limited 0.13 0.11Teestavalley Power Transmission Limited 0.21 -Total 2.04 1.10
Terms and Conditions The loans to key management personnel are on the same terms and conditions as applicable to all other employees All other transactions were made on normal commercial terms and conditions and at market rates. All outstanding balances are
unsecured and are repayable in cash. Loans to Subsidiaries are given on cost to cost basis.h) Transaction in the capacity of Central Transmission Utility (CTU) with the related parties
(` in Crore)Particulars For the year ended 31st
March, 2019For the year ended
31st March, 2018SubsidiariesPowergrid Vizag Transmission Limited 273.21 220.18PowergridUnchaharTransmissionLimited 17.82 5.05Powergrid Parli Transmission Limited 199.70 -Powergrid Southern Interconnector Transmission System Limited 22.30 -Powergrid Kala Amb Transmission Limited 11.09 -Powergrid NM Transmission Limited 6.03 -Powergrid Jabalpur Transmission Limited 16.66 -Joint VenturesParbati Koldam Transmission Company Limited 155.75 178.83Torrent Power Grid Limited 46.91 46.46Powerlinks Transmission Limited 207.79 172.79Jaypee Powergrid Limited 180.92 192.86North East Transmission Company Limited 341.86 357.06Teestavalley Power Transmission Limited 32.23 30.27Total 1512.27 1203.50
58. Related party Transactions (Contd.)(` in Crore)
239
i) Remuneration to Key Managerial Personnel(` in Crore)
Particulars 31st March, 2019 31st March, 2018
ShortTermEmployeeBenefits 5.16 2.78
Post-EmploymentBenefits 0.19 0.54
LongTermEmployeeBenefits 0.44 0.17
Arrears to KMPs 0.72 -
Total 6.51 3.49
Inadditiontotheaboveremuneration,thewholetimedirectorshavebeenallowedtousethestaffcar(includingforprivatejourneys)on payment of `2000/-p.m.ascontainedintheDepartmentofPublicEnterprises(DPE)OMNo.2(23)/11-DPE(WC)-GL-V/13dated21/01/2013.
59. Operating Segments a) Business Segment The Board of Directors is the Company’s Chief Operating Decision Maker (CODM) who monitors the operating results of its business
segments separately for the purpose of making decisions about resource allocation and performance assessment. Three reportable segmentshavebeenidentifiedonthebasisofservicesprovided.
• Transmission Services-Company’sprincipalbusinessistransmissionofbulkpoweracrossdifferentstatesofIndia. • Telecom Services- The company Utilizes the spareOptical fibres available in theOptical GroundWire (OPGW) laid on the
transmission network for providing telecom services. It operates as a neutral carrier in the point to point bandwidth leasing business.
• Consultancy Services- provides Consultancy Services in the Transmission, Distribution and Telecom sectors, including Planning Design, Engineering, Load Dispatch, OPGW on intra state Transmission network, Procurement Management, Operation &Maintenance, Financing and Project Management.
b) The operations of the company are mainly carried out within the country and therefore there is no reportable geographical segment c) Informationaboutmajorcustomer:Revenuefromanysinglecustomer isnotequal toorexceeds10%ofthecompany’s total
revenue. Segment Revenue and Expenses RevenuedirectlyattributabletothesegmentsisconsideredasSegmentRevenue.Expensesdirectlyattributabletothesegmentsand
commonexpensesallocatedonareasonablebasisareconsideredassegmentexpenses. RevenuefromexternalcustomerinIndiais`34560.28crore(PreviousYear`30084.04crore)andoutsideIndiais`40.83crore(Previous
Year ` 29.96 crore). Segment Assets and Liabilities SegmentassetsincludealloperatingassetscomprisingofProperty,PlantandEquipment,currentassetsandloanandadvances.
Construction,Work-in-progress,constructionstoresandadvancesandinvestmentsareincludedinunallocatedassets.Segmentfacilitiesinclude operating liabilities and provisions.
58. Related party Transactions (Contd.)
Standalone Financial Statements
240
Part
icul
ars
Tran
smis
sion
Ser
vice
sCo
nsul
tanc
y Se
rvic
esTe
leco
m S
ervi
ces
Elem
inat
ion
Tota
lAs
at 3
1st
Mar
ch, 2
019
As a
t 31st
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arch
, 201
8As
at 3
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ch, 2
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As a
t 31st
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arch
, 201
8As
at 3
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ch, 2
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As a
t 31st
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arch
, 201
8As
at 3
1st
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ch, 2
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As a
t 31st
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arch
, 201
8As
at 3
1st
Mar
ch, 2
019
As a
t 31st
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arch
, 201
8
Reve
nue:
Reve
nue
from
Ope
ratio
ns
(inclu
ding
allo
cabl
e ot
her
inco
me)
33,
317.
17
28,835.41
615
.74
668.38
668
.20
610
.21
- -
34,
601.
11
30,
114.
00
Inte
r Seg
men
t Rev
enue
73.
88
68.20
(73
.88)
(68.20)
- -
Net R
even
ue fr
om
Oper
atio
ns 3
3,31
7.17
28,835.41
615
.74
668.38
742
.08
678.41
(73
.88)
(68.20)
34,
601.
11
30,
114.
00
Segm
ent r
esul
ts 1
5,65
2.94
1
9,79
0.29
2
95.6
5 431.68
393
.90
314
.41
16,
342.
49
20,536.38
UnallocatedInterestand
Othe
r Inc
ome
1,0
16.9
6 6
52.3
2
UnallocatedFinanceCosts
9,0
91.4
2 7
,590
.66
ProfitbeforeTax(Including
mov
emen
t in
Regu
lato
ry
Defe
rral A
ccou
nt B
alan
ces)
8,2
68.0
3 13,598.04
ProvisionforTaxes
(1,
670.
52)
5,3
53.3
9 ProfitafterTax
9,9
38.5
5 8,244.65
Oth
er in
form
atio
n:Se
gmen
t As
sets
1,9
0,89
3.00
1
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214.
01
2,5
86.5
5 1
,993
.03
999
.71
919
.35
1,9
4,47
9.26
1,80,126.39
UnallocatedAssets
51,
993.
74
43,768.75
Tota
l Ass
ets
2,4
6,47
3.00
2,
23,8
95.1
4 Se
gmen
t Lia
bilit
ies:
13,
099.
71
8,644.29
3,3
57.6
4 2
,395
.04
660
.41
541
.17
17,
117.
76
11,580.50
UnallocatedOther
Liab
ilitie
s (in
cludi
ng lo
ans)
1,7
0,33
8.10
1,57,899.68
Tota
l lia
bilit
ies
1,8
7,45
5.86
1,
69,4
80.1
8
Depr
ecia
tion
and
Amor
tisat
ion
10,
106.
27
8,991.67
1.2
4 1
.11
93.
16
98.47
10,
200.
67
9,0
91.2
5
Non-cashexpenditure
othe
r tha
n De
prec
iatio
n 4
35.5
4 2
6.04
4
.75
0.2
3 1
.07
16.
15
441
.36
42.
42
CapitalExpenditure
23,
911.
84
21,687.20
4.9
9 1
.16
46.
57
104
.70
23,
963.
40
21,
793.
06
59. O
pera
ting
Segm
ents
(Co
ntd.
)(`
in C
rore
)
241
60. Capital and other Commitments(` in Crore)
Particulars As at 31st March, 2019 As at 31st March, 2018Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountand not provided for (net of advances)
11027.08 25502.79
Company’s commitment towards further investment in join venture entities 201.22 231.72Company'scommitmenttowardsfurtherinvestmentinsubsidiarycompanies 5787.59 9876.51
61. Contingent Liabilities and contingent assets Contingent Liabilities1. Claims against the Company not acknowledged as debts in respect of: (i) Capital Works Someofthecontractorsforsupplyand installationofequipmentsandexecutionofworksatourprojectshave lodgedclaimsonthe
companyseekingenhancementofthecontractprice,revisionofworkschedulewithpriceescalation,compensationfortheextendedperiod of work, idle charges etc. These claims are being contested by the Company as being not admissible in terms of the provisions of the respective contracts.
The company is pursuing various options under the dispute resolution mechanism available in the contract for settlement of these claims. In such cases, contingent liability of `2837.05crore(PreviousYear`1440.68crore)hasbeenestimated.
(ii) Land compensation cases Inrespectoflandacquiredfortheprojects,thelandlosershaveclaimedhighercompensationbeforevariousauthorities/courtswhichare
yet to be settled. In such cases, contingent liability of `1756.40 crore (Previous Year `2490.90 crore) has been estimated. (iii) Other claims InrespectofclaimsmadebyvariousState/CentralGovernmentDepartments/Authoritiestowardsbuildingpermissionfees,penaltyon
diversionofagriculturelandtonon-agricultureuse,Nalatax,waterroyaltyetc.andbyothers,contingentliabilityof 26.45 crore (Previous Year `4.12 crore) has been estimated.
(iv) Disputed Income Tax/Sales Tax/Excise/Municipal Tax Matters Disputed Income Tax/Sales Tax/Excise/Municipal Tax Matters amounting to `475.70 crore (Previous Year `432.64 crore) are being
contested before various Appellate Authorities. Many of these matters have been disposed of in favour of the company but are disputed before higher authorities by the concerned departments. Against total claim of `172.83crore(PreviousYear`80.12crore),provisionof`138.39crore(PreviousYear`71.44 crore) is made and balance of `34.44 crore ( Previous Year `8.68crore)towardspenaltyisshownascontingentliabilityasitisnotawillfuldefaultandinmanagementopinion,sameisnotexpectedtobeupheldbythecourt.
(v) Others a) Other contingent liabilities amounts to 640.82crore(PreviousYear 403.95 crore) which includes claim of 384.70Crore(Previous
Year `221.81crore)relatedtoArbitrationcases/Rowcases. b) SomeofthebeneficiarieshavefiledappealsagainstthetariffordersoftheCERC.Theamountofcontingentliabilityinthisregard
is not ascertainable. c) UndertheTransmissionServiceAgreement(TSA)withPowerlinksTransmissionLtd,thecompanyhasanobligationtopurchasethe
JV company (Powerlinks Transmission Ltd) at a buyout price determined in accordance with the TSA. Such an obligation may result incaseJVcompany(PowerlinksTransmissionLtd)servesaterminationnoticeeitheron“POWERGRIDeventofdefault”oron“forcemajeure event” prescribed under TSA. No contingent liability on this account has been considered as the same is not ascertainable.
2. a) Details of Bank guarantees given by the company on behalf of SPV companies, which were taken over to carry out the business awardedundertariffbasedbidding,towardsperformanceoftheworkawarded are as under:
(` in crore)Name of SPV 31st March,2019 31st March, 2018Powergrid NM Transmission Company Ltd - -Powergrid Vizag Transmission Company Ltd - -PowergridUnchaharTransmissionCompanyLtd - 0.02Powergrid Kala Amb Transmission Limited - -Powergrid Jabalpur Transmission Limited 31.50 31.50PowergridWaroraTransmissionLimited 62.10 62.10Powergrid Parli Transmission Limited 63.90 63.90Powergrid Southern Interconnector Transmission System Limited 110.04 110.04Powergrid Medinipur Jeerat Transmission Limited 141.89 141.89Powergrid Mithilanchal Transmission Limited 84.32 84.32Powergrid Varanasi Transmission System Limited 30.38 30.38Powergrid Jawaharpur Firozabad Transmission Limited 41.85 -
b) TheCompanyhasgivenguaranteeforthedues&punctualpaymentanddischargeoftheobligationsamountingto`290 crore (Previous Year ` 290 crore) against bond issued by Powergrid Vizag Transmission Company Ltd.
Standalone Financial Statements
242
62. Capital management a) Risk Management The company’s objectives when managing capital are to • maximizetheshareholdervalue; • safeguarditsabilitytocontinueasagoingconcern; • maintainanoptimalcapitalstructuretoreducethecostofcapital. Forthepurposeof thecompany’scapitalmanagement,equitycapital includes issuedequitycapital,securitiespremiumAccountand
all other equity reserves attributable to the equity holders of the company. The companymanages its capital structure andmakesadjustmentsinlightofchangesineconomicconditions,regulatoryframeworkandrequirementsoffinancialcovenantswithlenders.Tomaintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, regulate investments in new projects,returncapitaltoshareholdersorissuenewshares.Thecompanymonitorscapitalusingdebt-equityratio,whichistheratiooflongtermdebttototalnetworth.Thepolicyistokeepthedebt-equityratiowhereinthedebtislessthan75%oftotalcapitalemployed(i.e.debttoequityratiolessthan75:25).Thecompanyincludeswithinlongtermdebt,interestbearingloansandborrowingsandcurrentmaturities of long term debt.
Thedebt-equityratiooftheCompanywasasfollows:-
Particulars 31st March, 2019 31stMarch,2018Long term debt (` in crore) 141786.36 130212.96Equity(` in crore) 59017.14 54414.96LongtermdebttoEquityratio 71:29 71:29
Underthetermsofthemajorborrowingfacilities,thecompanyisrequiredtocomplywiththefinancialcovenants.Breachesinmeetingthefinancialcovenantswouldpermitthelenderstoimmediatelycallloansandborrowings.Therehavebeennobreachesinthefinancialcovenantsofanyinterest-bearingloansandborrowinginthecurrentreportingperiod.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March, 2019 and 31st March,2018.
b) Dividends (` in crore)
Particular 31st March, 2019 31st March, 2018(i)EquitysharesFinal dividend for the year ended 31stMarch,2018of`2.80(31stMarch,2017–` 3.35) per fully paid share
1464.85 1752.59
Interim dividend for the year ended 31st March, 2019 of `5.83(31stMarch,2018–` 2.45) per fully paid share
3050.02 1281.74
Dividend not recognized at the end of the reporting period Inadditiontoabovedividend,theBoardofDirectorson29thMay,2019recommendedthepaymentofafinaldividendof`2.50 per fully
paidequityshare.ThisproposeddividendissubjecttotheapprovalofshareholdersintheensuingAnnualgeneralmeeting.
63. Earnings per share(Amount in `)
(a) Basic and diluted earnings per share attributable to the equity holders of the company
31st March, 2019 31st March, 2018
Including movement in Regulatory deferral balances 19.00 15.76#ExcludingmovementinRegulatorydeferralbalances* 23.83 9.48#Total basic and diluted earnings per share attributable to the equity holders of the company
19.00 15.76
*RestatedinthecurrentyearconsequenttorecognitionofMinimumAlternateTaxCreditindeferredtaxassetsduringtheyear.Refernoteno 26 ( c) and (d)
#Refernoteno54forreclassification(` in Crore)
(b) Reconciliation of earnings used as numerator in calculating earnings per share
31st March, 2019 31st March, 2018
Earnings attributable to the equity holders of the company includingmovement inRegulatory deferral balances
9938.55 8244.65#
Earningsattributable to theequityholdersof thecompanyexcludingmovement inRegulatory deferral balances
12465.42 4960.46#
Total Earnings attributable to the equity holders of the company 9938.55 8244.65 #Refernoteno54forreclassification
243
(c) Weighted average number of shares used as the denominator 31st March, 2019No. of shares
31st March, 2018No. of Shares
Weightedaveragenumberofequitysharesusedasthedenominatorincalculatingbasic earnings per share
5231589648 5231589648
Adjustments for calculation of diluted earnings per share - -Total weighted average number of equity shares used as the denominator in calculating basic earnings per share
5231589648 5231589648
64. Financial Risk Management TheCompany’sprincipalfinancial liabilitiescomprise loansandborrowingsdenominated inIndianrupeesorforeigncurrencies,trade
payables and other payables. The Company has also provided financial guarantee in respect of bonds issued by its wholly ownedsubsidiary, Powergrid Vizag Transmission Limited. Themain purpose of these financial liabilities is to finance the Company’s capitalinvestments and operations.
TheCompany’sprincipalfinancialassetsincludeloansandadvances,tradeandotherreceivables,andcashandcashequivalentsthataregenerated from its operations.
TheCompany’sactivitiesexposeittothefollowingfinancialrisks,namely,
a) Credit risk, b) Liquidityrisk, c) Market risk.
Thisnotepresentsinformationregardingthecompany’sexposure,objectives,policiesandprocessesformeasuringandmanagingtheserisks.
Risk management framework
The Company has a duly constituted Risk Management Committee headed by Director (Projects) with Director (Finance) and Director (Personnel) as members. For the purpose of evaluating and managing the uncertainties the enterprise faces, Enterprise Risk Management frameworkhasbeenimplementedintheCompany.Theframeworkisastructured,consistentandcontinuousprocessforidentification,assessment,monitoringandmanagementofrisks.Asperthisframework,thesignificantbusinessprocesses/risksaremonitoredandcontrolled through various Key Performance Indicators (KPIs). The Committee meets at regular intervals and reviews KPIs and provides updatestotheAuditCommittee/Board.
ThemanagementoffinancialrisksbytheCompanyissummarizedbelow:-A) Credit Risk Creditriskistheriskthatcounterpartywillnotmeetitsobligationsunderafinancialinstrumentorcustomercontract,leadingtoafinancial
loss.TheCompanyisexposedtocreditriskfromitsoperatingactivitiesonaccountoftradereceivablesandloansandadvancesandfromitsfinancingactivitiesduetodepositswithbanksandfinancialinstitutions,foreignexchangetransactionsandotherfinancialinstruments.
Adefaultonafinancialassetiswhenthecounterpartyfailstomakecontractualpaymentswithin3yearsofwhentheyfalldue.Thisdefinitionofdefault isdeterminedconsidering thebusinessenvironment inwhich theCompanyoperatesandothermacro-economicfactors.
Assetsarewritten-offwhenthereisnoreasonableexpectationofrecovery,suchasadebtordeclaringbankruptcyorfailingtoengageinarepaymentplanwiththeCompany.Whereloansorreceivableshavebeenwrittenoff,theCompanycontinuestoengageinenforcementactivitytoattempttorecoverthereceivabledue.Wheresuchrecoveriesaremade,thesearerecognizedinthestatementofprofitandloss.
(i) Trade Receivables The Company primarily provides transmission facilities to inter-state transmission service customers (DICs) comprisingmainly state
utilities owned by State Governments. The Company has a robust payment security mechanism in the form of Letters of Credit (LC) backed bytheTri-PartiteAgreements(TPA).TheTPAwassignedamongtheGOI,ReserveBankofIndiaandtheindividualStateGovernmentssubsequenttotheissuanceoftheOneTimeSettlementSchemeofStateElectricityBoardsduesduring2001-02bytheGOI,whichwasvalidtillOctober2016.GOIhasapprovedtheextensionoftheseTPAsforafurtherperiodof10years.MajorityoftheStateshaveexecutedtheagreementsforextensionofTPAsandmatterisbeingpursuedwiththeremainingstates.
AspertheprovisionsoftheTPA,thecustomersarerequiredtoestablishLCcovering105%oftheaveragemonthlybillingoftheCompanyforlast12months.TheTPAalsoprovidesthatifthereisanydefaultinpaymentofcurrentduesbyanyStateUtility,theoutstandingduescanbedeductedfromtheState’sRBIaccountandpaidtotheconcernedCPSU.ThereisalsoprovisionforregulationofpowerbytheCompanyincaseofnon-paymentofduesandnon-establishmentofLC.
CERCtariffregulationsallowpaymentagainstmonthlybillstowardstransmissionchargeswithinaperiodof60daysfromthedateofthebill and levy of surcharge on delayed payment beyond 60 days. A graded rebate is provided by the Company for payments made within 60 days.
63. Earnings per share (Contd.)
Standalone Financial Statements
244
Trade receivables consist of receivables relating to transmission services of ` 4536.61 crore (Previous Year ` 3257.37 crore), receivables relating to consultancy services of `190.03 crore (Previous Year `253.79 crore) and receivables relating to telecom business of `239.58crore (Previous Year `175.95 crore)
(ii) Other Financial Assets (excluding trade receivables)
• Cash and cash equivalents TheCompanyheldcashandcashequivalentsof`377.74 crore (Previous Year `502.48crore).Thecashandcashequivalentsare
heldwithpublicsectorbanksandhighratedprivatesectorbanksanddonothaveanysignificantcreditrisk.
• Deposits with banks and financial institutions
TheCompanyhelddepositswithbanksandfinancialinstitutionsof`4117.77 crore (Previous Year `1853.80crore).Termdepositsare placed with public sector banks and have negligible credit risk.
• Loans
The Company has given loans to employees, subsidiaries, Joint Venture companies, Government of India and other parties. House building loans and conveyance advance to the employees are secured against the mortgage of the house properties or hypothecation of vehicles for which such loans have been given in line with the policies of the Company. The loans provided to groupcompaniesareforprojectsunderTariffBasedCompetitiveBiddingrouteandPublicprivatepartnership.Theriskofdefaultin respect of these loans is considered negligible.
o Exposure to credit risk(` in Crore)
Particulars 31st March, 2019 31st March, 2018Financial assets for which loss allowance is measured using 12 months Expected Credit Losses (ECL)Non-CurrentLoans 10708.99 8253.12Othernon-currentfinancialassets 4384.90 680.50Cashandcashequivalents 377.74 502.48Depositswithbanksandfinancialinstitutions 4117.77 1853.80Current loans 416.87 46.88Othercurrentfinancialassets 6853.20 4869.92Total 26859.47 16206.70Financial assets for which loss allowance is measured using Life time Expected Credit Losses (ECL)Trade receivables 4966.22 3687.11
o Provision for expected credit losses (a) Financial assets for which loss allowance is measured using 12 month expected credit losses TheCompanyhasassetswherethecounter-partieshavesufficientcapacitytomeettheobligationsandwheretheriskofdefault
isverylow.Atinitialrecognition,financialassets(excludingtradereceivables)areconsideredashavingnegligiblecreditriskandtheriskhasnotincreasedfrominitialrecognition.Thereforeexpectedcreditlossprovisionisnotrequired.
(b) Financial assets for which loss allowance is measured using life time expected credit losses In respect of trade receivables from Telecom and Consultancy, customer credit risk is managed by regular monitoring of the
outstandingreceivablesandfollow-upwiththeconsumerforrealization. Withregardtotransmissionsegment,theCompanyhascustomersmostofwhomarestategovernmentutilitieswithcapacityto
meet the obligations and therefore the risk of default is negligible. Further, management believes that the unimpaired amounts that are 30 days past due date are still collectible in full, based on the payment security mechanism in place and historical payment behavior.
Considering the above factors and the prevalent regulations, the trade receivables continue to have a negligible credit risk on initial recognition and thereafter on each reporting date.
(c) Ageing analysis of trade receivables The ageing analysis of the trade receivables is as below:
(` in Crore)Ageing Not due 0-30 days
past due31-60 days
past due61-90 days
past due91-120 days
past dueMore than 120 days past due
Total
Gross carrying amount as on 31st March, 2019
14.34 1559.70 1224.37 813.78 133.17 1220.86 4966.22
Gross carrying amount as on 31stMarch,2018
5.57 1504.84 822.79 272.69 167.02 914.20 3687.11
64. Financial Risk Management (Contd.)
245
(d) Reconciliation of impairment loss provision Themovementintheallowanceforimpairmentinrespectoffinancialassetsduringtheyearwasasfollows:
(` in Crore)Particulars Trade receivables Investments Loans Advances Contract Assets Total
Balance as at 1st April, 2017 32.41 0.05 - 20.25 - 52.71Impairment loss recognized 15.74 - - - - 15.74Amountswrittenoff - - - 0.86 - 0.86Balance as at 31st March, 2018 48.15 0.05 - 19.39 - 67.59Impairment loss recognized 289.33 4.00 - 0.01 105.71 399.05Amountswrittenoff - - - - - -Balance as at 31st March, 2019 337.48 4.05 - 19.40 105.71 466.64
Based on historic default rates, the Company believes that, apart from the above, no impairment allowance is necessary in respect of any otherassetsastheamountsareinsignificant.
B) Liquidity risk
Liquidityriskmanagementimpliesmaintainingsufficientcashandmarketablesecuritiesandtheavailabilityoffundingthroughanadequateamountofcommittedcreditfacilitiestomeetobligationswhendue.TheCompanymonitorsitsriskofashortageoffundsusingaliquidityplanningtool.TheCompanyhasaccesstoavarietyofsourcesoffundingsuchascommercialpaper,bankloans,bondsandexternalcommercialborrowingsandretainsflexibilityinfundingbymaintainingavailabilityundercommittedcreditlines.
ManagementmonitorsrollingforecastsoftheCompany’sliquiditypositioncomprisingtheundrawnborrowingfacilitiesbelowandcashandcashequivalentsonthebasisofexpectedcashflows.
TheCompanydependsonbothinternalandexternalsourcesofliquiditytoprovideworkingcapitalandtofundcapitalexpenditure.
i) Financial Arrangement
The Company had access to the following undrawn borrowing facilities at the end of the reporting period.(` in Crore)
Particulars 31st March, 2019 31st March, 2018Expiringwithin1year(bankoverdraftandotherfacilities) 582.13 1676.50Expiringbeyondoneyear(bankloans) 12153.70 15002.74
The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time and have remaining availability period of 1 to 5 years (Previous Year 1 to 5 years).
ii) Maturities of financial liabilities ThetablebelowanalysestheCompany’sfinancialliabilitiesintorelevantmaturitygroupingsbasedontheircontractualmaturities
forallnon-derivativefinancialliabilities. Theamountdisclosedinthetableisthecontractualundiscountedcashflows.
(` in Crore)Contractual maturities of financial liabilities
Within a year Between 1-5 years
Beyond 5 years
Total
31st March, 2019Borrowings(includinginterestoutflows) 24733.50 77230.69 108167.14 210131.33Trade payables 364.11 - - 364.11Otherfinancialliabilities 9035.28 1559.42 4924.35 15519.05Total 34132.89 78790.11 113091.49 226014.4931st March, 2018Borrowings(includinginterestoutflows) 17573.08 73642.89 99822.32 191038.29Trade payables 240.34 - - 240.34Otherfinancialliabilities 10265.31 459.60 - 10724.91Total 28078.73 74102.49 99822.32 202003.54
64. Financial Risk Management (Contd.)
Standalone Financial Statements
246
C) Market risk
Marketriskistheriskthatthefairvalueoffuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketprices. Market risk comprises three types of risk:
i. Currency risk
ii. Interest rate risk
iii. Otherpricerisk,suchasequitypriceriskandcommodityrisk.
i) Currency risk
TheCompanyisexposedtocurrencyriskmainlyinrespectofforeigncurrencydenominatedloansandborrowingsandprocurementofgoodsandserviceswhosepurchaseconsiderationisdenominatedinforeigncurrency.TransmissiontariffareregulatedbytheCERC.AccordingtotheCERCtariffregulationsfortheblock2014-19theCompanymayhedgeforeignexchangeexposureinrespectoftheinterestonforeigncurrencyloanandrepaymentofforeignloanacquiredforthetransmissionsystem,inpartorfullinitsdiscretionandrecoverthecostofhedgingofforeignexchangeratevariationcorrespondingtothenormativeforeigndebt,intherelevant year.
Ifhedgingoftheforeignexchangeexposureisnotundertaken,theextrarupeeliabilitytowardsinterestpaymentandloanrepaymentcorresponding to the normative foreign currency loan in the relevant year is permissible to be recovered as part of transmission tariffprovideditisnotattributabletothegeneratingCompanyorthetransmissionlicenseeoritssuppliersorcontractors.DuringtheCurrentfinancialyear,nohedgingforforeignexchangeexposurehasbeenundertakenbytheCompany.InrespectofgoodsandservicesprocuredforCapitalInvestment,theexchangeratevariationispartoftheprojectcost,fordeterminationoftransmissiontariff.Thecurrencyriskinrespectofgoodsandservicesprocuredforoperationactivitiesisnotsignificant.
TheCompany’sexposuretoforeigncurrencyriskattheendofthereportingperiodexpressedinINRisprovidedinNoteNo.52.
Sensitivity
SincetheimpactofstrengtheningorweakeningofIndianrupeeagainstUSD,Euro,JPYandothercurrenciesonthestatementofprofitandlosswouldnotbeverysignificant;therefore,sensitivityanalysisforcurrencyriskisnotdisclosed.
ii) Interest rate risk
TheCompanyisexposedtointerestrateriskarisingmainlyfromlongtermborrowingswithfloatinginterestrates.TheCompanyisexposedtointerestrateriskbecausethecashflowsassociatedwithfloatingrateborrowingswillfluctuatewithchangesininterestrates.TheCompanymanagestheinterestraterisksbymaintainingadebtportfoliocomprisingamixoffixedandfloatingrateborrowings in domestic and foreign currencies.
Atthereportingdate,theinterestrateprofileoftheCompany’svariableinterestrate-bearingfinancialinstrumentsisasfollows:(` in Crore)
Particulars 31st March, 2019 31st March, 2018
Long Term Debt with floating rate of interest
-Domestic 26190.00 17532.00-Foreign 33427.30 27771.63
Sub Total 59617.30 45303.63Long Term Debt with fixed rate of interest
-Domestic 74488.86 77696.21-Foreign 7680.20 7213.12
Sub Total 82169.06 84909.33Total Long Term Debt 141786.36 130212.96% of Floating Interest Rate Debt to Total Long Term Debt 42.05% 34.79%
Fair value sensitivity analysis for interest-rate risk AsperCERCRegulations,interestonloanduringconstructionformspartofprojectcostforthepurposeoftariffandafterthedate
ofcommercialoperation,interestonloansisrecoverablethroughtariffcalculatedonthenormativeaverageloanoftheyearbyapplying the weighted average rate of interest of the actual loan portfolio.
Accordingly,theCompany’sinterestrateriskisnotconsideredsignificant;hencesensitivityanalysisfortheriskisnotdisclosed.
64. Financial Risk Management (Contd.)
247
iii) Other price risk
TheCompany’sexposuretoequitysecuritiespriceriskarisesfrominvestmentsheldbytheCompanyandclassifiedinthebalancesheet as fair value through OCI.
Consideringthemagnitudeofequityinvestments,nosignificantriskisexpectedtoarise.
65. Income Tax expense Thisnoteprovidesananalysisofthecompany’sincometaxexpense,andhowthetaxexpenseisaffectedbynon-assessableandnon-
deductibleitems.ItalsoexplainssignificantestimatesmadeinrelationtotheCompany’staxposition.
(a) Income tax expense(` in Crore)
Particulars 31st March, 2019 31st March, 2018Current TaxCurrenttaxonprofitsfortheyear 2489.43 2153.67Adjustmentsforcurrenttaxofpriorperiods* - 15.34Pertaining to regulatory deferral account balances (A) (694.08) 44.23Total current tax expense (B) 1795.35 2213.24Deferred Tax expenseOriginationandreversaloftemporarydifferences 741.01 3140.15Previouslyunrecognized tax credit recognizedasDeferredTaxAsset thisyear
(4206.88) -
Total deferred tax expense /benefit (C) (3465.87) 3140.15Income tax expense (B+C-A) (976.44) 5309.16Pertaining to regulatory deferral account balances (694.08) 44.23Total tax expense including tax on movement in regulatory deferral account balances
(1670.52) 5353.39#
*Thisincludestaxonregulatorydeferralbalanceaccountforthelastyear. (b) Income Tax recognized in Regulatory Deferral Account Balances:
(` in Crore)Particulars 31st March, 2019 31st March, 2018
DeferredassetsforDeferredtaxliability (3472.89) 3121.19#Foreign Currency Fluctuation 232.27 195.92 EmployeeBenefitsExpenses 19.67 11.31 TotalRegulatoryDeferralAccountBalancesBeforeTax-Income/(Expenses) (3,220.95) 3328.42CurrentTaxonRegulatoryDeferralAccountBalances (694.08) 44.23 Net Movement in Regulatory Deferral Account Balances - Income/ (Expenses) (net of Tax)
(2526.87) 3284.19
(c) Income Tax recognized in other comprehensive income:(` in Crore)
Particulars 31st March, 2019 31st March, 2018Before
TaxTax expense/
(benefit)Net of
TaxBefore
TaxTax expense/
(benefit)Net of
TaxNet gains/(losses) on fair valuation of equityinstruments
(14.15) - (14.15) (12.92) - (12.92)
Netacturiallossesondefinedbenefitplans (0.26) 0.05 (0.31) 37.58 8.02 29.56 Less: Transferred to expenditure duringconstruction (net)
2.34 0.50 1.84 10.94 2.33 8.61
Other Comprehensive Income (Net of Tax) (16.75) (0.45) (16.30) 13.72 5.69 8.03
64. Financial Risk Management (Contd.)
Standalone Financial Statements
248
(d) Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate:(` in Crore)
Particulars 31st March, 2019 31st March, 2018Profitbeforeincometaxexpenseincludingmovementinregulatory 8,268.03 13,598.04Tax at the Company's domestic tax rate of 34.944 % (31 March 2018 34.608 %)
2,889.18 4,706.01
Taxeffectof: NonDeductibletaxitems (2,743.09) (4,201.98)Taxexemptincome (1,769.51) 576.15 DeferredAssetsforDeferredTaxLiability 2,654.47 (1,080.18)PreviousYearstaxliability - 15.34 Unabsorbedtaxlosses (964.96) -DeferredTaxexpense/(income) (3,465.87) 3,140.15 Minimumalternatetaxadjustments** 1,729.28 2,197.90 Income tax expense (1,670.52) 5,353.39
**RestatedinthecurrentyearconsequenttorecognitionofMinimumAlternateTaxCreditindeferredtaxassetsduringtheyear.Refernote no 26 (c) and (d).
#Refernoteno54forreclassification.
66. Employee Benefit Obligations(` in Crore)
Particulars 31st March, 2019 31st March, 2018Current Non-current Total Current Non-current Total
Leave Obligations 39.77 331.92 371.69 42.04 312.90 354.94Post-RetirementMedicalFacility(PRMF) 16.86 422.11 438.97 12.30 374.36 386.66OtherEmployeebenefits/LongServiceAward 1.15 13.60 14.75 1.14 13.26 14.40Gratuity 111.45 514.99 626.44 82.72 548.76 631.48Other Defined retirement benefits (ODRB)/Baggage Allowance
2.06 16.67 18.74 2.08 16.35 18.43
Total employee benefit obligations 171.29 1299.29 1470.59 140.28 1265.63 1405.91
(i) Long Term Employee Benefits A. Leave Obligations TheCompanyprovidesforearned leavebenefit(includingcompensatedabsences)andhalf-pay leavetotheemployeesofthe
company which accrue annually at 30 days and 20 days respectively. Earned leave is encashable while in service. Half pay leaves (HPL)areen-cashableonlyonseparationbeyondtheageof55yearsuptothemaximumof300days(HPL).However,totalnumberof leave that can be encashed on superannuation shall be restricted to 300 days and no commutation of half pay leave shall be permissible. The liability for same is recognized on the basis of actuarial valuation.
B. Otheremployeebenefits–POWERGRIDEmployeefamilyrehabilitationscheme ThecompanyhasintroducedPOWERGRIDEmployeesFamilyEconomicRehabilitationSchemeduringtheyear.TheObjectiveof
theschemeistoprovidemonetaryassistanceandsupporttoanemployeeincaseofhis/herpermanenttotaldisablementandtohis/herfamilyincaseofdeathwhileinservice.Thebeneficiarywouldbeentitledtomonthlypaymentequivalenttotheemployee’s50%ofonemonthpaylastdrawnprovidedthebeneficiarydepositswiththecompanyanamountequaltoPF(excludingVPF)balance, Gratuity amount and Group Insurance (EDLI) amount, Such monthly payment would continue till the normal notional date on which the employee concerned would have attained the age of superannuation had the employee continued in the service ofthecompany.Theschemeisoptional.ProvisionforPOWERGRIDEmployeesFamilyEconomicRehabilitationSchemeamountingto `0.53 crore (Previous Year ` 6.62 crore) for the year has been made during the year based on actuarial valuation.
(ii) Post-employment obligations (Defined Employee Benefit/Contribution Schemes) A. Post-RetirementMedicalFacility(PRMF) TheCompanyhasPost-RetirementMedicalFacility(PRMF),underwhichretiredemployeesandthespouseareprovidedmedical
facilitiesintheempanelledhospitals.TheycanalsoavailtreatmentasOut-Patientsubjecttoaceilingfixedbythecompany.Theliability for the same is recognized on the basis of actuarial valuation on annual basis on the Balance Sheet date. The scheme is fundedbythecompanyandismanagedbyaseparatetrustconstitutedon1stMay2018.
65. Income Tax expense (Contd.)
249
B. Otheremployeebenefits–LongServiceAward Thisbenefitisapplicabletoallregularemployeesofthecompany(exceptforDirectorsandCMD)whohavesuperannuatedafter
completing at least 10 years of service. C. Gratuity Thecompanyhasadefinedbenefitgratuityplan.Everyemployeewhohasrenderedcontinuousserviceoffiveyearsormoreis
entitledtogetgratuityat15dayssalary(15/26xlastdrawnbasicsalaryplus,dearnessallowance)foreachcompletedyearofserviceonsuperannuation,resignation,termination,disablementorondeathsubjecttoamaximumof` 20 lacs. The scheme is funded by the company and is managed by a separate trust. The liability for the same is recognized on the basis of actuarial valuationonannualbasisontheBalanceSheetdate.CompanyhascarriedouttheactuarialvaluationofGratuitybenefitconsideringceiling of `20 Lakhs.
D. OtherDefinedRetirementBenefits(ODRB)/BaggageAllowance The Company has a scheme for settlement at the time of superannuation at home town for employees and dependents to
superannuated employees. The scheme is unfunded and liability for the same is recognized on the basis of actuarial valuation on annual basis on the Balance Sheet date.
E. Provident Fund CompanypaysfixedcontributiontoProvidentFundatpredeterminedratetoaseparatetrust,whichinveststhefundsinpermitted
securities. Contribution to family pension scheme is paid to the appropriate authorities. The contribution to the fund and EPS scheme for the year amounting to ` 131.04 crore (previous year `93.07crore)hasbeenrecognizedasexpenseandischargedtoStatementofProfitandLoss.TheobligationofthecompanyislimitedtosuchfixedcontributionandtoensureaminimumrateofinterestoncontributionstothemembersasspecifiedbyGOI.Asperthereportofactuaryoverallinterestearningandcumulativesurplus ismore than statutory interest payment requirement. Hence, no further provision is considered necessary. Since thecompany does not have unconditional right over the PF corpus, the surplus has not been recognized in the Balance Sheet.
(` in Crore)Particulars 31st March, 2019 31st March, 2018
Current Non-current Total Current Non-current Total Provident Fund (PF) 141.68 2615.90 2757.58 427.96 2196.21 2624.17
(` in Crore)Particulars PF
Present value of obligation
Fair value of plan assets
Net amount
1st April, 2018 2624.17 2649.00 (24.83) Service cost 98.18 - 98.18Interestexpense(income) 199.44 226.44 (27)Total 297.62 226.44 71.18Re measurementsReturnonplanassets,excludingamount included in interestexpense/(income)
- - -
(Gain)/Lossfromchangeindemographicassumptions - - -(Gain)/Lossfromchangeinfinancialassumptions (0.10) - (0.10)Experience(Gain)/Losses (34.91) - (34.91)Total (35.01) - (35.01)Employee contributions 111.69 209.88 (98.19)Benefitspayments (240.89) (240.89) -31st March, 2019 2757.58 2844.43 (86.85)
(` in Crore)Particulars PF
Present value of obligation
Fair value of plan assets
Net amount
1st April, 2017 2321.95 2363.30 (41.35) Service cost 71.41 - 71.41Interestexpense(income) 174.15 217.78 (43.63)Total 245.56 217.78 27.78
66. Employee Benefit Obligations (Contd.)
Standalone Financial Statements
250
Particulars PFPresent value of
obligationFair value of plan
assetsNet amount
Re measurementsReturnonplanassets,excludingamount included in interestexpense/(income)
- - -
(Gain)/Lossfromchangeindemographicassumptions - - -(Gain)/Lossfromchangeinfinancialassumptions (0.06) - (0.06)Experience(Gain)/Losses 60.21 - 60.21Total 60.15 - 60.15Employee contributions 134.22 205.63 (71.41)Benefitspayments (137.71) (137.71) -31st March, 2018 2624.17 2649.00 (24.83)
The net liability disclosed above relates to Provident Fund is as follows:(` in Crore)
ParticularsPF
31st March, 2019 31st March, 2018Present value of funded obligations 2757.58 2624.17Fair value of plan assets 2844.43 2649.00Deficit/(Surplus) of funded plan (86.85) (24.83)
Sensitivity Analysis of Provident Fund: (` in Crore)
Particulars PF
a) Impact of change in discount rate 2757.58
Present value of Obligation at the end of period
-Impactduetoincreaseof0.5% (0.32)
-Impactduetodecreaseof0.5% 0.33
The major categories of plan assets (PF) are as follows(` in Crore)
Particulars31st March, 2019 31st March, 2018
Quoted Unquoted Total In % Quoted Unquoted Total In %Equityinstruments(ETF) 38.62 - 38.62 2% 14.84 - 14.84 1%Debt instrumentsGovt/StateBonds 1570.27 - 1570.27 55% 1395.64 - 1395.64 53%PSUandPrivateBonds 1135.92 - 1135.92 40% 1056.47 - 1056.47 40%
Bank Balance 7.79 - 7.79 0% 12.11 - 12.11 0%Other Receivables 91.83 - 91.83 3% 169.94 - 169.94 6%Total 2844.43 - 2844.43 2649.00 - 2649.00
Fairvalueofcompany’sowntransferablefinancialinstrumentsheldasplanassetsis`85.50croreason31stMarch,2019(`94.81croreason31stMarch,2018).
Theexpectedmaturityanalysisofprovidentfundisasfollows:(` in Crore)
Particulars Less than a year Between 1-2 year Between 2-5 years Over 5 years Total31st March, 2019 141.68 125.82 356.78 2133.30 2757.5831stMarch,2018 427.96 185.44 584.58 1426.19 2624.17
66. Employee Benefit Obligations (Contd.)(` in Crore)
251
F. Pension The Company has scheme of employees defined Pension Contribution. Company contribution is paid to separate trust. Amount of
contributionpaid/payablefortheyearis` 102.41 crore (previous year `108.67crore)hasbeenrecognizedasexpenseandischargedtoStatementofProfit&Loss.
Thesummarizedpositionofvariousemployeebenefitobligationsisasfollows:(` in Crore)
Particulars Gratuity ODRB Leaves PRMF
Present value of
obligation
Fair value
of plan assets
Net amount
Present value of
obligation
Fair value
of plan assets
Net amount
Present value of
obligation
Fair value
of plan assets
Net amount
Present value of
obligation
Fair value
of plan assets
Net amount
1st April, 2018 631.48 579.51 51.97 18.43 - 18.43 354.94 - 354.94 386.66 - 386.66
Service cost 29.64 - 29.64 0.98 - 0.98 40.75 - 40.75 12.84 - 12.84
Interestexpense(income)
47.99 44.04 3.95 1.40 - 1.40 26.97 - 26.97 29.38 3.00 26.38
Total amount recognized in profit or loss
77.63 44.04 33.59 2.38 - 2.38 67.72 - 67.72 42.22 3.00 39.22
Re measurements
Return on plan assets,excludingamount included in interestexpense/(income)
- 7.53 (7.53) - - - - - - - - -
(Gain)/Lossfrom change in demographic assumptions
- - - - - - - - - - - -
(Gain)/Lossfromchangeinfinancialassumptions
(5.95) - (5.95) (0.21) - (0.21) (4.91) - (4.91) (7.60) - (7.60)
Experience(Gain)/Losses
(6.36) - (6.36) (1.63) - (1.63) (2.28) - (2.28) 33.66 - 33.66
Total amount recognized in other comprehensive income
(12.31) - (12.31) (1.84) - (1.84) (7.19) - (7.19) 26.06 - 26.06
Employer contributions
- 29.56 (29.56) - - - - - - - 431.64 (431.64)
Benefitspayments (70.36) (70.36) - (0.23) - (0.23) (43.78) - (43.78) (15.96) (15.96) -
31st March, 2019 626.44 590.28 36.16 18.74 - 18.74 371.69 - 371.69 438.98 418.68 20.30
(` in Crore)
Particulars Gratuity ODRB Leaves PRMF
Present value of
obligation
Fair value
of plan assets
Net amount
Present value of
obligation
Fair value
of plan assets
Net amount
Present value of
obligation
Fair value
of plan assets
Net amount
Present value of
obligation
Fair value
of plan assets
Net amount
1st April, 2017 625.54 551.83 73.71 17.64 - 17.64 489.97 - 489.97 340.28 - 340.28
Service cost 32.32 - 32.32 0.94 - 0.94 33.78 - 33.78 11.16 - 11.16
Interestexpense(income)
46.92 41.39 5.53 1.32 - 1.32 36.75 - 36.75 25.52 - 25.52
Total amount recognized in profit or loss
79.24 41.39 37.85 2.26 - 2.26 70.53 - 70.53 36.68 - 36.68
66. Employee Benefit Obligations (Contd.)
Standalone Financial Statements
252
Particulars Gratuity ODRB Leaves PRMF
Present value of
obligation
Fair value
of plan assets
Net amount
Present value of
obligation
Fair value
of plan assets
Net amount
Present value of
obligation
Fair value
of plan assets
Net amount
Present value of
obligation
Fair value
of plan assets
Net amount
Re measurements
Return on plan assets,excludingamount included in interestexpense/(income)
- 10.95 (10.95) - - - - - - - - -
(Gain)/Lossfrom change in demographic assumptions
- - - - - - - - - - -
(Gain)/Lossfromchangeinfinancialassumptions
(3.97) - (3.97) (0.13) - (0.13) (2.69) - (2.69) (5.07) - (5.07)
Experience(Gain)/Losses
(40.62) (40.62) (1.24) - (1.24) 6.95 - 6.95 25.30 - 25.30
Total amount recognized in other comprehensive income
(44.59) - (44.59) (1.37) - (1.37) 4.26 - 4.26 20.23 - 20.23
Employer contributions
- 4.05 (4.05) - - - - - - - - -
Benefitspayments (28.71) (28.71) - (0.10) - (0.10) (209.82) - (209.82) (10.53) - (10.53)
31st March, 2018 631.48 579.51 51.97 18.43 - 18.43 354.94 - 354.94 386.66 - 386.66
Thenetdisclosedaboverelatestofundedandunfundedplansareasfollows:-(` in Crore)
Particulars Gratuity ODRB Leaves PRMF
31st March, 2019
31st March, 2018
31st March, 2019
31st March, 2018
31st March, 2019
31st March, 2018
31st March, 2019
31st March, 2018
Present value of funded obligations
626.44 631.48 - - - - 438.98 -
Fair value of plan assets 590.27 579.51 - - - - 418.68 -
Deficit/(Surplus) of funded plan 36.17 51.97 - - - - 20.30 -
Unfunded plans - - 18.74 18.43 371.69 354.94 - 386.66
Thecompanyexpectstocontribute`33.85croretothegratuitytrustduringtheFY2019-20. (iii) Significant actuarial assumptions for Post-Employment Benefits : Economic Assumptions
Particulars Gratuity, ODRB, Pension, PRMF,PF31st March, 2019 31st March, 2018
Discount rate 7.75% 7.60%Salarygrowthrate(exceptforPF) 6.50% 6.50%
ThediscountrateisgenerallybaseduponthemarketyieldsavailableonGovt.Bondsattheaccountingdaterelevanttocurrencyofbenefitpayments for a term that matches the liabilities. Salary growth rate is companies’ long term best estimate as to salary increases and takes accountofinflation,seniority,promotion,businessplan,HRPolicyandotherrelevantfactorsonlongtermbasis.
66. Employee Benefit Obligations (Contd.) (` in Crore)
253
Demographic AssumptionsParticulars 31st March, 2019 31st March, 2018i) Retirement Age 60 60ii) Mortality rates inclusive of provision for disability 100%ofIALM(2006-08)iii) Ages
Withdrawalrate% Withdrawal%Upto30years 3 3From 31 to 44 years 2 2Above 44 years 1 1
Mortality rates for specimen ages
Age Mortality rate Age Mortality rate Age Mortality rate15 0.000614 45 0.002874 75 0.03963720 0.000888 50 0.004946 80 0.06055825 0.000984 55 0.007888 85 0.09198230 0.001056 60 0.011534 90 0.13889535 0.001282 65 0.017009 95 0.20858540 0.001803 70 0.025855 100 0.311628
(iv) Sensitivity Analysis of the defined benefit obligation(` in Crore)
Particulars Gratuity ODRB Leave PRMFa) Impact of change in discount rate
Present value of Obligation at the end of period 626.44 18.74 371.69 438.98-Impactduetoincreaseof0.5% (18.91) (0.70) (14.57) (24.01)-Impactduetodecreaseof0.5% 20.37 0.71 15.79 24.50
b) Impact of change in salary increasePresent value of Obligation at the end of period 626.44 18.74 371.69 438.98-Impactduetoincreaseof0.5% 6.91 0.71 15.91 24.94-Impactduetodecreaseof0.5% (7.20) (0.70) (14.80) (24.13)
Althoughtheanalysisdoesnottakeaccountofthefulldistributionofcashflowsexpectedundertheplan,itdoesprovideanapproximationof the sensitivity of the assumptions shown.
Thesensitivityanalysisabovehavebeendeterminedbasedonamethodthatextrapolatestheimpactondefinedbenefitobligationasaresult of reasonable changes in key assumptions occurring at the end of the reporting period. This analysis may not be representative of theactualchangeinthedefinedbenefitobligationsasitisunlikelythatthechangeinassumptionswouldoccurinisolationofoneanotheras some of the assumptions may be correlated.
(v) The major categories of plan assets (Gratuity) are as follows:(` in Crore)
Particulars 31st March, 2019 31st March, 2018
Quoted Unquoted Total In % Quoted Unquoted Total In %
Equityinstruments(ETF) 3.35 - 3.35 0.5% 3.20 - 3.20 1%
Debt instruments
Govt/StateBonds 292.45 - 292.45 48.5% 291.91 - 291.91 49%
PSUandPrivateBonds 307.27 - 307.27 51.0% 296.26 - 296.26 50%
Total* 603.07 - 603.07 591.37 - 591.37 *Fair valuation as per actuarial valuation is ` 590.27 crore (Previous Year ` 579.51 crore). Fairvalueofcompany’sowntransferablefinancialinstrumentsheldasplanassetsis`73.83crore(PreviousYear`87.53crore).
66. Employee Benefit Obligations (Contd.)
Standalone Financial Statements
254
(vi) The major categories of plan assets (PRMF) are as follows:(` in Crore)
Particulars 31st March, 2019 31st March, 2018
Quoted Unquoted Total In % Quoted Unquoted Total In %
Equityinstruments(ETF) - - - - - - - -
Debt instruments
Govt/StateBonds 171.85 - 171.85 41% - - - -
PSUandPrivateBonds 246.56 - 246.56 59% - - - -
Total# 418.41 - 418.41 - - - -
#Fairvaluationasperactuarialvaluationis`418.69crore(PreviousYear` Nil crore) (vii) Description of Risk exposures Valuationisbasedoncertainassumptionswhicharedynamicinnatureandvaryovertime.Assuchcompanyisexposedtovariousrisks
as follows: A) SalaryIncreases(exceptforPF)–Actualsalaryincreasewillincreasetheplan’sliability.Increaseinsalaryincreaserateassumptions
in future valuation will also increase the liability. B) Investmentrisk–Ifplanisfundedthenassetsliabilitiesmismatchandactualinvestmentreturnonassetslowerthanthediscount
rate assumed at the last valuation date can impact the liability C) DiscountRate–Reductionindiscountrateinsubsequentvaluationscanincreasetheplan’sliability. D) Mortality&disability–Actualdeathsanddisabilitycasesprovinglowerorhigherthanassumedinthevaluationcanimpactthe
liabilities. E) Withdrawals–Actualwithdrawalsprovinghigherorlowerthanassumedwithdrawalsandchangeofwithdrawalratesatsubsequent
valuations can impact Plan’s liability. (viii) Defined benefit liability and employee contribution Theweightedaveragedurationof thedefinedbenefitobligations is41.39years (PreviousYear41.89years).Theexpectedmaturity
analysisofundiscountedpension,gratuity,otherdefinedretirementbenefitandpost-employmentmedicalbenefitsisasfollows:(` in Crore)
Particulars Less than a year Between 1-2 year Between 2-5 years Over 5 years Total31st March, 2019Definedbenefitobligation(Gratuity) 78.80 9.56 172.02 366.07 626.45Post-employmentmedicalbenefits 16.86 18.13 70.80 333.19 438.98ODRB 2.06 0.20 0.96 15.51 18.73Otheremployeebenefits(LSA) 1.15 1.00 2.90 9.69 14.74Total 98.87 28.89 246.68 724.46 1098.9031st March, 2018Definedbenefitobligation(Gratuity) 82.71 153.47 153.16 242.14 631.48Post-employmentmedicalbenefits 12.31 12.95 43.26 318.14 386.66ODRB 2.08 1.72 4.82 9.81 18.43Otheremployeebenefits(LSA) 1.14 0.97 2.83 9.46 14.40Total 98.24 169.11 204.07 579.55 1050.97
67. Recent Accounting Pronouncements effective from 1st April 2019: IndAS116wasnotifiedbyMinistryofCorporateAffairson30March2019anditisapplicableforannualreportingperiodsbeginningon
or after 1 April 2019.
IndAS116willaffectprimarilytheaccountingbylesseesandwillresultintherecognitionofalmostallleasesonbalancesheet.Thestandardremovesthecurrentdistinctionbetweenoperatingandfinanceleasesandrequiresrecognitionofanasset(theright-of-usetheleaseditem)andafinancialliabilitytopayrentalsforvirtuallyallleasecontracts.Anoptionalexemptionexistsforshort-termandlow-valueleases.Theaccountingbylessorswillnotsignificantlychange.
TheCompanyisevaluatingtherequirementsoftheamendmentandtheeffectonfinancialstatements.
66. Employee Benefit Obligations (Contd.)
255
Place: New DelhiDate: 29th May, 2019
Divya TandonCompany Secretary
K. SreekantDirector (Finance)
Ravi P SinghDirector (Personnel)
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari)Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
For and on behalf of the Board of Directors
As per our report of even date
Amendments to Ind AS 19, ‘Employee Benefits’ TheamendmentstoIndAS19clarifytheaccountingfordefinedbenefitplanamendments,curtailmentsandsettlements.Theyconfirm
that entities must : • Calculatethecurrentservicecostandnetinterestfortheremainderofthereportingperiodafteraplanamendment,curtailment
orsettlementbyusingtheupdatedassumptionsfromthedateofthechange; • Anyreductioninasurplusshouldberecognisedimmediatelyinprofitorlosseitheraspartofpastservicecost,orasagainorloss
onsettlement.Inotherwords,areductioninasurplusmustberecognisedinprofitorlossevenifthatsurpluswasnotpreviouslyrecognisedbecauseoftheimpactoftheassetceiling;and
• Separatelyrecogniseanychangesintheassetceilingthroughothercomprehensiveincome. These amendments will apply to any future plan amendments, curtailments, or settlements of the Company on or after 1 April 2019. The
Companyisevaluatingtherequirementsoftheamendmentandtheeffectonfinancialstatements. Amendment to Ind AS 12, ‘Income Taxes’ Theamendmentsclarifythattheincometaxconsequencesofdividendsonfinancialinstrumentsclassifiedasequityshouldberecognised
accordingtowherethepasttransactionsoreventsthatgenerateddistributableprofitswererecognised.Theserequirementsapplytoallincometaxconsequencesofdividends.Previously,itwasunclearwhethertheincometaxconsequencesofdividendsshouldberecognisedinprofitorloss,orinequity,andthescopeoftheexistingguidancewasambiguous.
TheCompanyisevaluatingtherequirementsoftheamendmentandtheeffectonfinancialstatements. Amendments to Ind AS 23, ‘Borrowing Costs’ Theamendmentsclarifythatifaspecificborrowingremainsoutstandingaftertherelatedqualifyingassetisreadyforitsintendeduseor
sale, it becomes part of general borrowings. TheCompanyisevaluatingtherequirementsoftheamendmentandtheeffectonfinancialstatements.
68. a) Figureshavebeenroundedofftonearestrupeesincroreuptotwodecimal. b) Previousyearfigureshavebeenreclassifiedwhereverconsiderednecessary.
67. Recent Accounting Pronouncements effective from 1st April 2019: (Contd.)
Standalone Financial Statements
256
Independent Auditors’ ReportTo the Members of Power Grid Corporation of India LimitedReport on the Standalone Financial StatementsOpinionWehaveauditedtheaccompanyingstandalonefinancialstatementsofPowerGridCorporationofIndiaLimited(“theCompany”),whichcomprisetheBalanceSheetasatMarch31,2019,theStatementofProfitandLoss(includingOtherComprehensiveIncome),theStatementofChangesinEquityandtheStatementofCashFlowsfortheyearendedonthatdate,andasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation(hereinafterreferredtoas“thestandalonefinancialstatements”).Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalonefinancialstatementsgivetheinformationrequiredbytheCompaniesAct,2013(“theAct”)inthemannersorequiredandgiveatrueandfairviewinconformitywith the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015,asamended,(“IndAS”)andotheraccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2019,theprofit&totalcomprehensiveincome,changesinequityanditscashflowsfortheyearendedonthatdate.Basis for OpinionWeconductedourauditof thestandalonefinancialstatements inaccordancewiththeStandardsonAuditing(SAs)specifiedundersection143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the StandaloneFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndia(ICAI)togetherwiththeindependencerequirementsthatarerelevanttoourauditofthestandalonefinancialstatementsundertheprovisionsoftheActandtheRulesmadethereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheICAI’sCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthestandalonefinancialstatements.Emphasis of MatterWedrawattentiontothefollowingmattersinthenotestotheStandalonefinancialstatements(a) InrespectofrecognitionofrevenuefromtransmissionassetsforwhichfinaltariffordersareyettobeissuedbytheCERC[ReferNote
No.35(b)(ii)];and(b) Inrespectofbalanceconfirmation,reconciliationandconsequentialadjustments,ifany,ofTradeReceivableandRecoverableandTrade
andOtherpayableswhichiscarriedoutonanongoingbasis[ReferNoteNo.45(a)].Ouropinionisnotmodifiedinrespectofthesematters.Key Audit MattersKeyauditmattersare thosematters that, inourprofessional judgment,wereofmost significance inourauditof the standalonefinancialstatementsfortheyearended31stMarch2019.Thesematterswereaddressedinthecontextofourauditofthestandalonefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Wehavedeterminedthemattersdescribed below to be the key audit matters to be communicated in our report.
Sr. No. Key Audit Matters Auditors’ approach to address the Key Audit Matters1 Recognition of Revenue
The Company has revenue from three business segments viz. Transmission, Telecom and Consultancy. Transmission Income is accounted for based on tariff orders notified by the CERC. In case oftransmission projects where final tariff orders areyettobenotified,transmissionincomeisaccountedforonprovisionalbasisaspertariffregulationsandorders of theCERC in similar cases.Difference, ifany,isaccountedonissuanceoffinaltariffordersbythe CERC. As at each reporting date, transmission income includes an accrual for services rendered to the customers but not yet billed i.e. UnbilledRevenue.The Company implemented Ind AS 115 in the current financial year and applied the availableexemption provided therein, to not restate thecomparative periods.This is considered as Key Audit Matter due to the natureandextentofestimatesmadeasperCERCtariffRegulationsandcontractswithcustomersforrecognition of revenue.(Refer Note No. 35(b)(ii) Standalone Financial Statements)
Our audit approach was a combination of test of internal controls and substantive procedures which includes the following:
• WeassessedtheCompany’sprocesstoidentifytheimpactofadoptionofthe new revenue accounting standard.
• Evaluatedthedetailedanalysisperformedbymanagementonrevenuestreamsby selecting samples for theexisting contractswith customersand considered revenue recognition policy in the current period in respect ofthoserevenuestreams;
• EvaluatedandtestedtheeffectivenessofthedesignofInternalcontrolsrelating to recognition and measurement of revenue from Transmission, Telecom and Consultancy.
• Verified the transmission revenuebasedon theCERC tariffRegulation,orders, circulars, guidelines and the company’s internal circulars.
• VerifiedtherevenuefromTransmissionbasedonthetariffordersnotifiedby CERC during the year on test basis.
• Verifiedontestbasistheincomerecognisedonprovisionalbasis(UnbilledRevenue) consistently as per the regulatory guidelines for the assets whosefinalordersareyettobenotifiedbyCERC,basedonthedateofcommercial operation (DOCO) letters issued by Regional technical heads, andcapitalcost,ascertifiedbytheManagement.
• VerifiedtheConsultancyandTelecomrevenuebasedonthecontractswithcustomers.
• Evaluatedtheappropriatenessofthedisclosuresprovidedunderthenewrevenuestandardandassessedtheadequacyoftherelevantdisclosures.
257
2. Deferred Tax Assets relating to MAT credit entitlementThe Company has considered MAT credit of `5935.70Croreinanticipationofsetoffagainstthetax payable in future years and created DeferredTaxAssetforthesameduringtheyear.Thesamehas been recognized as liability of the Regulatory Deferral Account corresponding to the said MAT credit entitlement.We identified this as a key audit matter becauseof the importance of this matter intended uses of the financial statements and its materiality andrequirement of judgement in assessing futuretaxable profits for recognisition of MAT creditentitlement.(Refer Note No.26 of Standalone financialstatements.)
Our audit approach involved:• UnderstandingthecurrentstatusofavailabilityofMATcredits• Discussed with appropriate senior management and evaluatedmanagement’s underlying key assumptions for set off of MAT creditagainsttaxablefutureprofits
3. Assessment of contingent liabilities in respect of certain litigations including land compensation, direct and indirect taxes, various claims filed by other parties not acknowledged as debt. There is high level of judgement required inestimating the contingent liabilities. The company’s assessment of contingent liabilities is supported by the facts of the matter, Company’s judgement thereon,pastexperienceandadvicesfromlegalandindependenttaxconsultantswherevernecessary.WeidentifiedtheaboveareaasKeyAuditMattersin view of associated uncertainty relating to the outcome of these matter.(Refer Note No. 61 of Standalone financialstatements).
Our audit approach involved;
a. Understandingthecurrentstatusofthelitigationforlandcompensations/taxassessments.
b. Examiningrecentordersfromcompetentauthoritiesand/orcommunicationreceived from various authorities, judicial forums and follow up action thereon.
c. Review and analysis of evaluation of the contentions of the company through discussions, collection of details of the subject matter under consideration, the likelyoutcomeandconsequentpotentialoutflowsonthose issues.
Information Other than the Standalone Financial Statements and Auditor’s Report ThereonThe Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises the information includedintheManagementDiscussionandAnalysis,Board’sReport includingAnnexurestoBoard’sReport,BusinessResponsibilityReport,Corporate Governance and Shareholder’s Information, but does not include the standalone financial statements and our Auditor’s Reportthereon.TheotherinformationasidentifiedaboveisexpectedtobemadeavailabletousafterthedateofthisAuditor’sReport.Our opinion on the standalone financial statements does not cover the other information andwewill not express any formof assuranceconclusion thereon. Inconnectionwithourauditofthestandalonefinancialstatements,ourresponsibilityistoreadtheotherinformationidentifiedabovewhenitbecomesavailableand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththestandalonefinancialstatementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.Wehavenothingtoreportinthisregard.Whenwereadthosedocumentsincludingannexures,ifanythereon,ifweconcludethatthereisamaterialmisstatementtherein,weshallcommunicate the matter to those charged with the governance.Management’s Responsibility for the Standalone Financial StatementsThe Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceincludingothercomprehensiveincome,changesinequityandcashflowsoftheCompanyinaccordancewiththeIndASandotheraccountingprinciplesgenerallyacceptedin India. ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to thepreparationandpresentationofthestandalonefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whether due to fraud or error.In preparing the standalone financial statements,management is responsible for assessing theCompany’s ability to continue as a goingconcern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management
Standalone Financial Statements
258
eitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.TheBoardofDirectorsareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.Auditor’s Responsibilities for the Audit of the Standalone Financial StatementsOur objectives are to obtain reasonable assurance aboutwhether the standalone financial statements as awhole are free frommaterialmisstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesestandalonefinancialstatements.AspartofanauditinaccordancewithSAs,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:• Identifyandassesstherisksofmaterialmisstatementofthestandalonefinancialstatements,whetherduetofraudorerror,designand
performauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtainanunderstandingofinternalfinancialcontrolsrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.Undersection143(3)(i)oftheAct,wearealsoresponsibleforexpressingouropiniononwhethertheCompanyhasadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.
• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadeby management.
• Concludeon the appropriateness ofmanagement’s useof thegoing concernbasis of accountingand, basedon the audit evidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattention inourauditor’sreporttotherelateddisclosuresinthestandalonefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluatetheoverallpresentation,structureandcontentofthestandalonefinancialstatements,includingthedisclosures,andwhetherthestandalonefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
Materialityisthemagnitudeofmisstatementsinthestandalonefinancialstatementsthat,individuallyorinaggregate,makesitprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthefinancialstatementsmaybeinfluenced.Weconsiderquantitativematerialityandqualitativefactorsin(i)planningthescopeofourauditworkandinevaluatingtheresultsofourwork;and(ii)toevaluatetheeffectofanyidentifiedmisstatementsinthefinancialstatements.We communicatewith those chargedwith governance regarding, among othermatters, the planned scope and timing of the audit andsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.We also provide those chargedwith governancewith a statement that we have compliedwith relevant ethical requirements regardingindependence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthestandalonefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.Report on Other Legal and Regulatory Requirements1. AsrequiredbytheCompanies(Auditor’sReport)Order,2016(“theOrder”)issuedbytheCentralGovernmentintermsofSection143(11)
of the Act, we give in Annexure ‘1’ourreportonthemattersspecifiedinparagraphs3and4oftheOrder,totheextentapplicable.2. In terms of section 143(5) of the Companies Act, 2013, we give in the Annexure ‘2’ our report on the directions issued by the Comptroller
and Auditor General of India. 3. AsrequiredbySection143(3)oftheAct,basedonourauditwereportthat: (a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessary
forthepurposesofouraudit; (b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examinationofthosebooks; (c) TheBalanceSheet,theStatementofProfitandLossincludingOtherComprehensiveIncome,StatementofChangesinEquityand
theStatementofCashFlowdealtwithbythisReportareinagreementwiththerelevantbooksofaccount; (d) Inouropinion,theaforesaidstandalonefinancialstatementscomplywiththeIndASspecifiedunderSection133oftheAct,
readwiththerelevantrulesissuedthereunder;
259
(e) Inviewofexemptiongivenvidenotificationno.G.S.R.463(E)datedJune5,2015,issuedbytheMinistryofCorporateAffairs,provisionsofSection164(2)oftheActregardingdisqualificationofDirectors,arenotapplicabletotheCompany;
(f) Withrespecttotheadequacyoftheinternalfinancialcontrolswithreferencetostandalonefinancialstatementsofthecompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereportinAnnexure ‘3’. Ourreportexpressesanunmodifiedopinionontheadequacyandoperatingeffectivenessof theCompany’s internalfinancialcontrolswithreferencetoStandalonefinancialstatements.
(g) WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,asamendedinouropinionandtothebestofourinformationandaccordingtotheexplanationsgivento us:
i. TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsStandalonefinancialstatements–ReferNoteNo.47and61totheStandalonefinancialstatements.
ii. TheCompanyhasmadeprovision,asrequiredundertheapplicablelaworaccountingstandards,formaterialforeseeablelosses,ifany,onlong-termcontractsincludingderivativecontracts.
iii. Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbytheCompany.
Place: New DelhiDate: 29th May, 2019
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari)Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
Standalone Financial Statements
260
Annexure ‘1’ to the Independent Auditors’ Report As referred to in our Independent Auditors’ Report of even date to the members of the Power Grid Corporation of India Limited, on the standaloneIndASfinancialstatementsfortheyearended31stMarch,2019,wereportthat:(i) a)TheCompanyhasgenerallymaintainedrecords,showingfullparticularsincludingquantitativedetailsandsituationofFixedAssets
(Property,Plant&Equipment). b) Thefixedassets(Property,Plant&Equipment)havebeenphysicallyverifiedbyexternalagenciesduringtheyear.Inouropinion,
frequencyofverificationisreasonablehavingregardtothesizeoftheCompanyandnatureofitsbusiness.Nomaterialdiscrepancieswerenoticedonsuchverification.
c) InouropinionandaccordingtoinformationandexplanationsgiventousandonthebasisofanexaminationoftherecordsoftheCompany,thetitledeedsofimmovablepropertiesareheldinthenameoftheCompanyexcept:
No. of Cases Cost (` in Crores) Net Block (` in Crores)Leasehold Land 10 200.08 189.42Freehold Land 25 144.27 144.27Buildings (Flats in Mumbai) 28 2.95 1.67
(ii) Theinventorieshavebeenphysicallyverifiedbyexternalagenciesduringtheyear.Inouropinion,frequencyofverificationisreasonablehavingregardtothesizeoftheCompanyandnatureofitsbusiness.Nomaterialdiscrepancieswerenoticedonsuchverification.
(iii) Accordingtotheinformationandexplanationsgiventous,theCompanyhasnotgrantedloans,securedorunsecured,duringtheyear,toanycompanies,firms,limitedliabilitypartnershipsorotherpartiescoveredintheregistermaintainedundersection189oftheAct.Inviewof the above, the clause 3(iii) (a), clause 3(iii) (b) and clause 3(iii) (c) of the Order are not applicable.
(iv)Inouropinionandaccordingtoinformationandexplanationgiventous,thecompanyhascompliedwithprovisionsofsection185and186of the Act in respect of loans, investments, guarantees and security.
(v) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhasnotacceptedanydepositfromthepublicin accordance with the provisions of the sections 73 to 76 or any other relevant provisions of the Act, and the rules framed thereunder. Accordingly, paragraph 3(v) of the order is not applicable to the company.
(vi) WehavebroadlyreviewedthecostrecordsmaintainedbythecompanyspecifiedbytheCentralGovernmentundersubsection(1)ofsection148oftheCompaniesAct,2013,inrespectofTransmission&TelecomOperationsoftheCompanyandweareoftheopinionthatprimafacietheprescribedrecordshavebeenmadeandmaintained.However,wehavenotmadedetailedexaminationofthecostrecordswith a view to determine whether they are accurate or complete.
(vii) a) According to the informationandexplanationsgiven tous, theCompany isgenerally regular indepositingundisputedstatutorydueswithappropriateauthorities includingProvidentFund,IncomeTax,GoodsandServicesTax,SalesTax,WealthTax,ServiceTax,DutyofCustom,DutyofExcise,ValueAddedTax,CessandotherstatutoryduesapplicabletotheCompanyandthattherearenoundisputedstatutoryduesoutstandingasat31stMarch,2019foraperiodofmorethansixmonthsfromthedatetheybecamepayable. As informed, provisions of the Employees State Insurance Act are not applicable to the Company.
b) Accordingtoinformationandexplanationsgiventous,therearenodisputedduesofDutyofCustomsorDutyofExcisewhichhavenotbeendeposited.However,followingdisputeddemandsofIncomeTaxorSalesTaxorServiceTaxorValueAddedTaxorCessdues have not been deposited:
Name of the Statute Nature of dues Amount* (` in Crores)
Period to which the amount relates
Forum where dispute is pending
IncomeTaxAct,1961 IncomeTax 2.38 FortheFY2010-11 ITAT, DelhiIncomeTaxAct,1961 IncomeTax 4.30 FortheFY2015-16 CIT (A) DelhiIncomeTaxAct,1961 IncomeTax 5.17 JurisdictionalAssessingOfficers
of TANsIncomeTaxAct,1961 IncomeTax 5.38 JurisdictionalAssessingOfficer,
DelhiChhattisgarhEntryTaxAct, 1976
EntryTax 164.59 For the FY 2011-12 to2017-18
Chhattisgarh High Court
Finance Act, 1994 ServiceTax 0.28 FortheF.Y.2003-04 CESTAT, KolkataBihar Value Added Tax,2005
EntryTax 12.00 ForFY2014-15 Chief Commissioner, Commercial Tax,Bihar
Bihar Value Added Tax,2005
EntryTax 2.16 ForFY2015-16 Joint Commissioner, Commercial Tax(Appeals)
261
Name of the Statute
Nature of dues Amount* (` in Crores)
Period to which the amount relates
Forum where dispute is pending
J&KGSTAct,1962 SalesTax 6.94 FromF.Y.1996-97to2001-02 SalesTaxAppellateTribunal,J&KJ&KGSTAct,1962 SalesTax 261.10 FromF.Y.2002-03to2013-14 Dy./Addl.CommissionerofSales
Tax(appeals)Jammu,J&KPunjab Vat Act, 2005 (EntryTax)
EntryTax 9.64 From F.Y.2011-12 to 2013-14
Hon'ableHighCourtPunjab&Haryana,
Building&OtherConstruction WorkersCessAct,1996
BOCW 5.00 ForFY2007-08 Hon'ableHighCourtHimachalPradesh, Shimla
Total 478.94
* Demand amount including interest, net of amount paid under protest.
(viii) InouropinionandaccordingtotheinformationandexplanationsgiventoustheCompanyhasnotdefaultedduringtheyearinrepaymentofloanstoitsfinancialinstitutions,bankersandduestotheBondholders.
(ix) Inouropiniononanoverallbasisandaccordingtotheinformationandexplanationsgiventous,thecompanyhasappliedthetermloans including funds raised through bonds for the purpose they were obtained. The company has raised funds by issuance of debt instruments(bonds)duringtheyear.Thecompanyhasnotraisedmoneybywayofinitialpublicofferorfurtherpublicofferduringthe year.
(x) Accordingtotheinformationandexplanationsgiventousandasrepresentedbythemanagement,wehavebeeninformedthatnocase of fraud has been committed on or by the company during the year.
(xi) Inviewofexemptiongivenvidenotificationno.G.S.R.463(E)datedJune5,2015,issuedbyMinistryofCorporateAffairs,provisionsof Section 197 read with Schedule V of the Act regarding managerial remuneration are not applicable to the Company. Accordingly, paragraph3(xi)oftheorderisnotapplicabletothecompany.
(xii) ThecompanyisnotaNidhiCompanyasprescribedundersection406oftheAct.Accordingly,paragraph3(xii)oftheorderisnotapplicable to the company.
(xiii) Accordingtotheinformationandexplanationsgiventousandasrepresentedbythemanagement,alltransactionswiththerelatedparties are in compliance with sections 177 and 188 of the Act, where applicable and the details have been disclosed in thestandaloneIndASfinancialstatementsasrequiredbytheapplicableIndianAccountingStandards.
(xiv) Accordingtotheinformationandexplanationsgiventousandbasedonourexaminationoftherecordsofthecompany,thecompanyhas not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly,paragraph3(xiv)isnotapplicabletothecompany.
(xv) Accordingtotheinformationandexplanationsgiventousandbasedonourexaminationoftherecordsofthecompany,thecompanyhasnot entered intonon-cash transactionswithdirectors orpersons connectedwith them.Accordingly, paragraph3(xv) isnotapplicable to the company.
(xvi) Accordingtotheinformationandexplanationsgiventousthecompanyisnotrequiredtoberegisteredundersection45IAoftheReserveBankofIndiaAct,1934.Accordingly,paragraph3(xvi)isnotapplicabletothecompany.
Place: New DelhiDate: 29th May, 2019
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari)Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
Standalone Financial Statements
262
Annexure ‘2’ to the Auditors ReportAs referred to in our Independent Auditors’ Report of even date to the members of the Power Grid Corporation of India Limited, on the standaloneIndASfinancialstatementsfortheyearended31stMarch,2019.
Sr. No. Directions Auditors’ Comments1. Whether the Company has system in place to
process all the accounting transactions through IT system? If yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financialimplications, if any, may be stated.
The company is having ERP system (SAP) in place for processing all accountingtransactions.Basedonourverification,noaccountingtransactionisbeingrecorded/processedotherthanthroughtheERPsysteminplace.
2. Whether there is any restructuring of an existingloan or cases of waiver/write off of debts/loans/interest etc. made by a lender to the company due to the company’s inability to repay the loan? If yes, thefinancialimpactmaybestated.
Basedonourverificationandexplanationsandinformationgiventous,therewerenocasesofrestructuringofanexistingloanorcasesofwaiver/writeoffofdebts/loan/interestetc.madebyalendertothecompanyduetothecompany’s inability to repay the loan.
3. Whether funds received/receivable for specificschemesfromCentral/Stateagencieswereproperlyaccountedfor/utilizedasperitstermandconditions?List the cases of deviation.
Based on our verification and explanations and information given to us,funds received/receivable for specific scheme from Central/State agencieswere properly accounted for and utilized as per its terms and conditions. No deviations were noticed by us.
Place: New DelhiDate: 29th May, 2019
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari)Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
263
Annexure ‘3’ to the Auditors’ Report As referred to in our Independent Auditors’ Report of even date to the members of the Power Grid Corporation of India Limited, on the standaloneIndASfinancialstatementsfortheyearended31stMarch,2019
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the act”)
WehaveauditedtheinternalfinancialcontrolswithreferencetoIndASfinancialstatementsofthecompanyasat31stMarch2019inconjunctionwithourauditofthestandaloneIndASfinancialstatementsoftheCompanyfortheyearendedonthatdate.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing andmaintaining internal financial controls with reference to Ind AS financialstatements,basedontheinternalcontrolsoverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsof internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountantsofIndia(ICAI).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolswithreferencetoIndASfinancialstatementsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofbusiness,including adherence to Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheAct.
Auditors’ Responsibility
OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolswithreferencetoIndASfinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControloverFinancialReporting(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,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolswithreferencetoIndASfinancialstatementswasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.
Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemwithreferenceto IndASfinancial statements and their operatingeffectiveness.Ouraudit of internal financial controlswith reference to IndASfinancialstatementsincludedobtaininganunderstandingofinternalfinancialcontrolswithreferencetoIndASfinancialstatements,assessingtheriskthatamaterialweaknessexistsandtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolsbasedontheassessedrisk.The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the standalone IndASfinancialstatements,whetherduetofraudorerror.
WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolssystemwithreferencetoIndASfinancialstatements.
Meaning of Internal Financial Controls with reference to Ind AS financial statements
Acompany’s internalfinancialcontrolwithreference toIndASfinancialstatements isaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalfinancialcontrolwithreferencetoIndASfinancialstatementsincludesthosepoliciesandprocedures that:
(1) pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;
(2) providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresoftheCompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and
(3) providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionsoftheCompany’sassetsthatcouldhaveamaterialeffectonthestandaloneIndASfinancialstatements.
Inherent Limitations of internal Financial Controls with reference to Ind AS financial statements
BecauseoftheinherentlimitationsofinternalfinancialcontrolswithreferencetoIndASfinancialstatements,includingthepossibilityofcollusionor improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections ofanyevaluationoftheinternalfinancialcontrolswithreferencetoIndASfinancialstatementstofutureperiodsaresubjecttotheriskthattheinternalfinancialcontrolswithreferencetoIndASfinancialstatementsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegree of compliance with the policies or procedures may deteriorate.
Standalone Financial Statements
264
Opinion
Inouropinion,theCompanyhas, inallmaterialrespects,anadequate internalfinancialcontrolssystemwithreferencetoIndASfinancialstatementsandsuchinternalfinancialcontrolswithreferencetoIndASfinancialstatementswereoperatingeffectivelyasat31stMarch,2019,basedontheinternalfinancialcontrolsoverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Place: New DelhiDate: 29th May, 2019
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari)Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
265
Particulars Note No As at 31st March, 2019
As at 31st March, 2018*
As at 1st April, 2017*
ASSETSNon-current assetsProperty,PlantandEquipment 4 171057.99 154831.38 136422.44Capitalwork-in-progress 5 37388.47 37603.90 38187.00Investment Property 6 0.03 0.03 0.03Other Intangible assets 7 1681.60 1366.86 1255.39Intangible assets under development 8 242.59 64.67 77.34InvestmentsinJointVenturesaccountedforusingtheequitymethod 9A 1166.58 1095.19 1020.76Financial Assets
Investments 9 129.84 128.78 141.70Loans 10 188.13 139.99 132.36Othernon-currentfinancialassets 11 4548.37 866.35 808.95
Othernon-currentassets 12 5208.83 5747.68 6516.58221612.43 201844.83 184562.55
Current assetsInventories 13 1247.25 1049.35 906.95Financial Assets
Investments - - 2.50Trade receivables 14 4728.10 3640.02 3131.93Cashandcashequivalents 15 3647.73 1534.80 3241.45BankbalancesotherthanCashandcashequivalents 16 688.92 654.22 112.18Loans 17 130.99 46.88 39.82Othercurrentfinancialassets 18 6881.04 4737.23 3239.17
Other current assets 19 337.86 504.50 300.8517661.89 12167.00 10974.85
Regulatory Deferral Account Balances 20 8083.27 11304.22 7975.80Total Assets 247357.59 225316.05 203513.20EQUITY AND LIABILITIESEquityEquitySharecapital 21 5231.59 5231.59 5231.59OtherEquity 22 53856.80 49194.40 44633.91
59088.39 54425.99 49865.50LiabilitiesNon-current liabilitiesFinancial Liabilities
Borrowings 23 131329.51 122710.32 111253.17Othernon-currentfinancialliabilities 24 3994.53 459.60 474.60
Provisions 25 368.15 716.87 789.56Deferredtaxliabilities(Net) 26 10018.48 13472.85 10404.18Othernon-currentliabilities 27 486.57 457.16 575.20
146197.24 137816.80 123496.71Current liabilitiesFinancial Liabilities
Borrowings 28 4300.00 1000.00 1500.00Trade payables(A) total outstanding dues of micro enterprises and small enterprises 29 33.27 2.33 -(B) total outstanding dues of creditors other than micro enterprises and
small enterprises29 331.86 238.11 413.98
Othercurrentfinancialliabilities 30 23359.68 22680.00 19809.94Other current liabilities 31 3888.98 2718.55 2589.08Provisions 32 701.14 1059.60 537.21CurrentTaxLiabilities(Net) 33 - 407.26 418.41
32614.93 28105.85 25268.62 Deferred Revenue 34 9457.03 4967.41 4882.37Total Equity and Liabilities 247357.59 225316.05 203513.20* Restated (Refer Note 55)Theaccompanyingnotes(1to70)formanintegralpartoffinancialstatements
Consolidated Balance Sheet as at 31st March, 2019 (` in Crore)
Place: New DelhiDate: 29th May, 2019
Divya TandonCompany Secretary
K. SreekantDirector (Finance)
Ravi P SinghDirector (Personnel)
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari) Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
For and on behalf of the Board of Directors
As per our report of even date
Consolidated Financial Statements
266
(` in Crore)Particulars Note No. For the year ended
31st March, 2019For the year ended 31st March, 2018*
Revenue From Operations 35 35059.12 29953.62Other Income 36 602.20 476.92Total Income 35661.32 30430.54EXPENSESEmployeebenefitsexpense 37 1783.57 1599.09Finance costs 38 8736.57 7324.14Depreciationandamortizationexpense 39 10540.95 9230.99Otherexpenses 40 3055.01 2237.70Total expenses 24116.10 20391.92Profitbeforeshareofnetprofitsof investments inJointVenturesaccountedforusingEquityMethodandtax
11545.22 10038.62
Shareofnetprofitsof investments inJointVenturesaccountedforusingEquityMethod
128.82 147.94
Profit Before Tax and Regulatory Deferral Account Balances 11674.04 10186.56Taxexpense:Currenttax-CurrentYear 2568.02 2182.64-EarlierYears - 15.34 Deferredtax 26 (3454.37) 3068.77
(886.35) 5266.75Profit for the period before Regulatory Deferral Account Balances 12560.39 4919.81NetmovementinRegulatoryDeferralAccountBalances-Income/(Expenses)(netoftax)
41 (2526.87) 3284.19
Profit for the period 10033.52 8204.00Other Comprehensive IncomeItemsthatwillnotbereclassifiedtoprofitorloss(netoftax) 42 (16.30) 8.03ShareofothercomprehensiveincomeofJointVenturesaccountedforusingEquityMethod
(0.04) (0.10)
Total Comprehensive Income for the period 10017.18 8211.93Earnings per equity share includingmovement in RegulatoryDeferral AccountBalances (Par value `10/-each):Basic&Diluted(`) 65 19.18 15.68Earnings per equity share excludingmovement in Regulatory Deferral AccountBalances (Par value `10/-each):Basic&Diluted(`) 65 24.01 9.40* Restated (Refer Note 55)Theaccompanyingnotes(1to70)formanintegralpartoffinancialstatements
Place: New DelhiDate: 29th May, 2019
Divya TandonCompany Secretary
K. SreekantDirector (Finance)
Ravi P SinghDirector (Personnel)
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari) Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
For and on behalf of the Board of Directors
As per our report of even date
Consolidated Statement of Profit and Loss for the year ended 31st March, 2019
267
Cons
olid
ated
Sta
tem
ent o
f Cha
nges
in E
quity
for t
he p
erio
d en
ded
31st
Mar
ch, 2
019
As a
t 1st A
pril,
201
852
31.5
9Ch
ange
s du
ring
the
year
-As
at 3
1st M
arch
, 201
952
31.5
9As
at 1
st A
pril,
201
752
31.5
9Ch
ange
s du
ring
the
year
-As
at 3
1st M
arch
, 201
852
31.5
9
Part
icul
ars
Rese
rves
and
Sur
plus
Oth
er C
ompr
ehen
sive
In
com
e
Tota
lSe
curi
ties
Prem
ium
Bond
Re
dem
ptio
n Re
serv
e
Self
Insu
ranc
e Re
serv
e
CSR
Rese
rve
Gen
eral
Re
serv
eRe
tain
ed
Earn
ings
Fair
Val
ue th
roug
h O
ther
Com
preh
ensi
ve
Inco
me
Equi
ty
Inve
stm
ent
Bala
nce
at 1
st A
pril,
201
895
78.2
9 91
87.5
8 73
7.60
12
3.33
26
988.
99
2487
.77
90.8
4 49
194.
40
Profitfortheyear
1003
3.52
10
033.
52
Othe
r Com
preh
ensiv
e In
com
e(2
.19)
(14.
15)
(16.
34)
Tota
l Com
preh
ensi
ve I
ncom
e 10
031.
33
(14.
15)
1001
7.18
Ad
just
men
ts d
urin
g th
e ye
ar-
Tran
sfer
to G
ener
al R
eser
ve42
50.0
0 (4
250.
00)
-Tr
ansf
er to
Bon
d re
dem
ptio
n re
serv
e2058.20
(2058.20)
-Tr
ansf
er
from
Bo
nd
Rede
mpt
ion
Rese
rve
(130
2.99
)13
02.9
9 -
Tran
sfer
to S
elf I
nsur
ance
Res
erve
257.
69
(257
.69)
-Tr
ansf
er fr
om S
elf I
nsur
ance
Res
erve
(101
.92)
101.
92
-Tr
ansf
er fr
om C
SR R
eser
ve(8.79)
8.79
--
FinalDividendF.Y.2017-18
(1464.85)
(1464.85)
TaxonFinalDividendF.Y.2017-18
(312
.92)
(312
.92)
InterimDividendF.Y.2018-19
(305
0.02
)(3
050.
02)
TaxonInterimdividendF.Y.2018-19
(627.58)
(627.58)
Othe
r Cha
nges
(Ind
AS
115
impa
ct)
104.
37
(3.78)
100.
59
Bala
nce
at 3
1st M
arch
, 201
995
78.2
9 99
42.7
9 89
3.37
11
4.54
31
454.
07
1797
.05
76.6
9 53
856.
80
A. E
quity
Sha
re C
apita
l
B. O
ther
Equ
ity
(` in
Cro
re)
(` in
Cro
re)
Consolidated Financial Statements
268
Part
icul
ars
Rese
rves
and
Sur
plus
Oth
er C
ompr
ehen
sive
In
com
e
Tota
lSe
curi
ties
Prem
ium
Bond
Re
dem
ptio
n Re
serv
e
Self
Insu
ranc
e Re
serv
e
CSR
Rese
rve
Gen
eral
Re
serv
eRe
tain
ed
Earn
ings
Fair
Val
ue th
roug
h O
ther
Com
preh
ensi
ve
Inco
me
Equi
ty
Inve
stm
ent
Bala
nce
at 1
st A
pril,
201
79578.29
8095.83
677.
79
123.38
2331
2.01
2742.85
103.
76
4463
3.91
Profitfortheyear
8198.31
8198.31
Othe
r Com
preh
ensiv
e In
com
e26
.54
(12.
92)
13.6
2 To
tal C
ompr
ehen
sive
Inc
ome
8224
.85
(12.
92)
8211
.93
Adju
stm
ents
dur
ing
the
year
Tran
sfer
to G
ener
al R
eser
ve35
00.0
0 (3
500.
00)
-Tr
ansf
er to
Bon
d re
dem
ptio
n re
serv
e2104.08
(2104.08)
-Tr
ansf
er
from
Bo
nd
Rede
mpt
ion
Rese
rve
(101
2.33
)10
12.3
3 -
Tran
sfer
to S
elf I
nsur
ance
Res
erve
228.63
(228.63)
-Tr
ansf
er fr
om S
elf I
nsur
ance
Res
erve
(168.82)
167.86
0.9
6 0
.00
Tran
sfer
from
CSR
Res
erve
(0.0
5)0.
05
--
FinalDividendF.Y.2016-17
(175
2.59
)(1
752.
59)
TaxonFinalDividendF.Y.2016-17
(365.58)
(365.58)
InterimDividendF.Y.2017-18
(1281.74)
(1281.74)
TaxonInterimdividendF.Y.2017-18
(259.87)
(259.87)
Othe
r Cha
nges
9.07
(0
.73)
8.34
Bala
nce
at 3
1st M
arch
, 201
895
78.2
9 91
87.5
8 73
7.60
12
3.33
26
988.
99
2487
.77
90.8
4 49
194.
40
(` in
Cro
re)
Theaccompanyingnotes(1to70)formanintegralpartoffinancialstatements
Refe
r to
Note
No
22 fo
r nat
ure
and
mov
emen
t of R
eser
ve a
nd S
urpl
us.
Plac
e: N
ew D
elhi
Date
: 29
th M
ay, 2
019
Div
ya T
ando
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269
Consolidated Statement of Cash Flow for the Year ended 31st March, 2019(` in Crore)
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
A. CASH FLOW FROM OPERATING ACTIVITIESProfitBeforeTaxandRegulatoryDeferralAccountBalances 11,674.04 10,186.56Add:NetmovementinRegulatoryDeferralAccountBalances(netoftax) (2,526.87) 3,284.19Add:TaxonNetmovementinRegulatoryDeferralAccountBalances (694.08) 44.23 Net Profit Before Tax (including Net movement in regulatory deferral accountbalances)
8,453.09 13,514.98
Adjustment for :Depreciation&amortizationexpenses 10,540.95 9,230.99 Transfer from Grants in Aid (70.77) (12.13)Deferredrevenue-AdvanceagainstDepreciation (180.64) (120.72)Provisions 410.58 50.59 Changesinfairvalueoffinancialassetsthroughprofitorloss (8.02) (6.42)NetLossonDisposal/WriteoffofProperty,Plant&Equipment 25.58 10.30 Deferred Foreign Currency Fluctuation Asset (941.06) 240.75 Deferred Income from Foreign Currency Fluctuation 1,056.50 (203.50)Regulatory Deferral Account Debit Balances 3,220.95 (3,328.42)Finance Costs 8,736.57 7,324.14 ProvisionsWrittenBack (28.25) (8.36)FERVloss/(gain) (0.16) (0.33)Interest income on Deposits, Bonds and loans to JVs (86.62) (98.97)Dividend income (5.42) (5.58)
22,670.19 13,072.34 Operating profit before Changes in Assets and Liabilities 31,123.28 26,587.32Adjustment for Changes in Assets and Liabilities:(Increase)/DecreaseinInventories (182.30) (163.46)(Increase)/DecreaseinTradeReceivables (1,379.29) (523.83)(Increase)/DecreaseinOtherFinancialAssets (6,019.61) (2,151.34)(Increase)/DecreaseinOtherNon-currentAssets (87.21) 57.95 (Increase)/DecreaseinOtherCurrentAssets 166.64 (196.47)Increase/(Decrease)inLiabilities&Provisions 2,039.91 1,359.01
(5,461.86) (1,618.14)Cash generated from operations 25,661.42 24,969.18 Directtaxespaid (2,280.75) (2,259.06)Net Cash from Operating Activities 23,380.67 22,710.12
B. CASH FLOW FROM INVESTING ACTIVITIESProperty,Plant&EquipmentandCapitalWorkinProgress(IncludingAdvancesforCapitalExpenditure)
(22,450.66) (26,179.86)
Receipt of Grant 3,684.53 421.39 (Increase)/DecreaseinInvestments (15.21) (25.12)(Increase)/DecreaseinInvestmentsaccountedforusingtheequitymethod (79.17) (74.43)Loans&AdvancestoJVs(includingrepayments) (77.12) (6.00)Lease receivables 10.21 59.82InterestreceivedonDeposits,Bonds&loanstoJVs 85.04 97.17 Dividend received 5.42 5.58Net Cash used in Investing Activities (18,836.96) (25,701.45)
Consolidated Financial Statements
270
Consolidated Statement of Cash Flow for the Year ended 31st March, 2019 (Contd.)(` in Crore)
Place: New DelhiDate: 29th May, 2019
Divya TandonCompany Secretary
K. SreekantDirector (Finance)
Ravi P SinghDirector (Personnel)
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari) Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
For and on behalf of the Board of Directors
As per our report of even date
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
C. CASH FLOW FROM FINANCING ACTIVITIESProceeds from BorrowingsNon Current 19,489.58 18,706.79Current 17,420.00 6,675.00
Repayment of BorrowingsNon Current (9,495.60) (6,236.67)Current (14,120.00) (7,175.00)
Adjustment for Fair Valuation of Long Term Loans 22.96 22.31 Finance Costs paid (10,292.35) (7,047.97)Dividend paid (4,514.87) (3,034.33)DividendTaxpaid (940.50) (625.45)Net Cash (used in)/from Financing Activities (2,430.78) 1,284.68
D.NetchangeinCashandCashequivalents(A+B+C) 2,112.93 (1,706.65)E.CashandCashequivalents(Openingbalance) 1,534.80 3,241.45 F.CashandCashequivalents(Closingbalance)(ReferNoteNo15)* 3,647.73 1,534.80
Theaccompanyingnotes(1to70)formanintegralpartoffinancialstatements* Includes ` 3471.01 crore (Previous Year ` 1373.92 crore) held in designated accounts which is not available for use by the Group.
Particulars Non-current borrowings
Current borrowings
Opening Balance as at 1stApril,2018 133,971.34 1,000.00Net Cash Flows during the year 310.94 3,300.00Non-cashchangesdueto:-Interestonborrowings 9,626.88-Variationinexchangerates 1,556.46-Fairvalueadjustments 22.96Closing Balance as at 31st March, 2019 145,488.58 4,300.00
Particulars Non-current borrowings
Current borrowings
Opening Balance as at 1st April, 2017 120,680.12 1,500.00Net Cash Flows during the year 5,739.34 (500.00)Non-cashchangesdueto:-Interestonborrowings 7,006.95-Variationinexchangerates 522.62-Fairvalueadjustments 22.31Closing Balance as at 31stMarch,2018 133,971.34 1,000.00
Notes: 1.Cashandcashequivalentsconsistofcheques,drafts,stampsinhands,balanceswithbanksanddepositswithoriginalmaturityofuptothree
months. 2.Previousyearfigureshavebeenre-grouped/re-arrangedwherevernecessary. 3.Reconciliationbetweentheopeningandclosingbalancesinthebalancesheetforliabilitiesarisingfromfinancingactivities.
(` in Crore)
(` in Crore)
271
Notes to Consolidated Financial Statements1. Group Information Power Grid Corporation of India Limited (‘the Company’) is a public company domiciled and incorporated in India under the provisions of
TheCompaniesActanditssharesarelistedontheNationalStockExchange(NSE)andBSELimited(BSE)inIndia.TheRegisteredOfficeoftheCompanyissituatedatB-9,QutabInstitutionalArea,KatwariaSarai,NewDelhi,IndiaanditsCorporateOfficeislocatedatSaudamini,PlotNo.2,Sector-29,Gurgaon,Haryana.
TheCompanyisnotifiedastheCentralTransmissionUtility(CTU)underTheElectricityAct,2003.Itisprincipallyengagedinplanning,implementation,operationandmaintenanceofInter-StateTransmissionSystem(ISTS),Telecomandconsultancyservices.
TheconsolidatedfinancialstatementsofthegroupfortheyearendedMarch31,2019wereapprovedforissuebytheBoardofDirectorson 29th May 2019.
2. Significant Accounting Policies TheConsolidatedfinancialstatementsofthegroupareconsistingoftheCompanyanditssubsidiariesandtheGroup’sinterestinjoint
ventures. 2.1 Basis of Preparation
i) Compliance with Ind AS Theconsolidatedfinancialstatementsareprepared incompliancewithIndianAccountingStandards(IndAS)notifiedunder
Section 133 of the Companies Act, 2013 (the Act), Companies (Indian Accounting Standards) Rules, 2015, the relevant provisions oftheCompaniesAct,2013(totheextentnotified),TheCompaniesAct,1956andtheprovisionsofElectricityAct,2003,ineachcase,totheextentapplicableandasamendedthereafter.
ii) Basis of Measurement Theconsolidatedfinancialstatementshavebeenpreparedonaccrualbasisandunder thehistoricalcostconventionexcept
following which have been measured at fair value: • Certainfinancialassetsandliabilitiesmeasuredatfairvalue(referNoteno.2.14foraccountingpolicyregardingfinancial
instruments), • Definedbenefitplans–planassetsmeasuredatfairvalue. iii) Functional and presentation currency TheconsolidatedfinancialstatementsarepresentedinIndianRupees(Rupeesor`), which is the Company’s functional and
presentationcurrencyandallamountsareroundedtothenearestcroreandtwodecimalsthereof,exceptasstatedotherwise.iv) Use of estimates Thepreparationofconsolidatedfinancialstatementsrequiresestimatesandassumptionsthataffectthereportedamountof
assets,liabilities,revenueandexpensesduringthereportingperiod.Although,suchestimatesandassumptionsaremadeonareasonableandprudentbasistakingintoaccountallavailableinformation,actualresultscoulddifferfromtheseestimates.Theestimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the periodinwhichtheestimateisrevisediftherevisioneffectsonlythatperiodorintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureyears(referNoteno.3oncriticalaccountingestimates,assumptionsandjudgments).
v) Current and non-current classification TheGrouppresentsassetsandliabilitiesinthebalancesheetbasedoncurrent/non-currentclassification. An asset is current when it is: • Expectedtoberealizedorintendedtobesoldorconsumedinnormaloperatingcycle; • Heldprimarilyforthepurposeoftrading; • Expectedtoberealizedwithintwelvemonthsafterthereportingperiod;or • Cashorcashequivalentunlessrestrictedfrombeingexchangedorusedtosettlealiabilityforatleasttwelvemonthsafter
the reporting period. Allotherassetsareclassifiedasnon-current. A liability is current when: • Itisexpectedtobesettledinnormaloperatingcycle; • Itisheldprimarilyforthepurposeoftrading; • Itisduetobesettledwithintwelvemonthsafterthereportingperiod;or • Thereisnounconditionalrighttodefersettlementoftheliabilityforatleasttwelvemonthsafterthereportingperiod. Allotherliabilitiesareclassifiedasnon-current. Deferredtaxassets/liabilitiesareclassifiedasnon-current. The Group recognizes twelve months period as its operating cycle.
Consolidated Financial Statements
272
2.2 Principle of Consolidation and Equity Accounting Subsidiaries SubsidiariesareentitiesoverwhichtheGrouphascontrol.TheGroupcontrolsanentitywhentheGroupisexposedto,orhasright
to,variablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsthroughitspowertodirecttherelevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
Theacquisitionmethodofaccountingisusedtoaccountforbusinesscombinationbythegroup. TheGroupcombinesthefinancialstatementofthesubsidiarieslinebylineaddingtogetherlikeitemsofassets,liabilities,equity,
income,andexpenses.InterGrouptransactions,balancesandunrealizedgainsontransactionsbetweencompaniesareeliminated.Unrealizedlossesarealsoeliminatedunlessthetransactionprovidesevidenceofanimpairmentofthetransferredasset.Accountingpolicies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
TheconsolidatedfinancialstatementshavebeenpreparedinaccordancewithIndianAccountingStandard(IndAS)110–‘ConsolidatedFinancialStatements’andIndianAccountingStandard(IndAS)28–‘InvestmentsinAssociatesandJointVentures’.
Joint Arrangements Under IndAS111 JointArrangements, investment in joint arrangements is classifiedaseither jointoperationor joint ventures.
The classification depends on the contractual right and obligations of each investor, rather than the legal structure of the jointarrangement. The Group has only joint ventures.
Joint Ventures Interestinjointventuresareaccountedforusingtheequitymethod,afterinitiallybeingrecognisedatcostintheconsolidatedbalance
sheet. Equity Method Undertheequitymethodofaccounting,the investmentsare initiallyrecognisedatcostandadjustedthereafter torecognizethe
Group’sshareofthepost–acquisitionprofitsorlossesoftheinvesteecompanyinStatementofProfitandLoss,andtheGroup’sshareof other comprehensive income of the investee Company in other comprehensive income. Dividends received from joint ventures are recognised as reduction in the carrying amount of the investment.
When theGroup’s shareof losses inan investmentaccountedunderEquitymethodequalsorexceeds its interest in theentity,including any other unsecured long term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the Joint Venture Entities.
UnrealizedgainsontransactionsbetweentheGroupanditsjointventuresareeliminatedtotheextentoftheGroup’s interest intheseentities.Unrealizedlossesarealsoeliminatedunlessthetransactionprovidesevidenceofanimpairmentofassettransferred.Accountingpoliciesofequityaccountedinvesteeshavebeenchangedwherenecessary.
Thefinancialstatementsofthesubsidiarycompaniesandjointventurecompaniesintheconsolidationaredrawnuptothesamereporting date as of the Group.
Changes in ownership interests Whenthegroupceasestoaccountforaninvestmentunderequitymethodduetolossofjointcontrol,theretainedinterestinthe
entityisremeasuredtoitsfairvaluewiththechangeincarryingamountrecognisedinStatementofProfitandLoss.Thefairvaluebecomestheinitialcarryingamountforthepurposeofsubsequentaccountingoftheretainedinterestasafinancialasset.
Difference in Accounting Policies and Impact thereon: ForcertainitemstheGroupandjointventureentitieshavefolloweddifferentaccountingpolicies.However,theimpactofsameisnot
material. 2.3 Property, Plant and Equipment TheGrouphadoptedtoconsiderthecarryingvalueofProperty,PlantandEquipmentasperpreviousGAAPonthedateoftransition
to Ind AS (1stApril2015)tobethedeemedcostasperIndAS101‘First-timeAdoptionofIndianAccountingStandards’. Initial Recognition and Measurement Property,PlantandEquipment is initiallymeasuredatcostofacquisition/construction includinganycostsdirectlyattributableto
bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Afterinitialrecognition,Property,PlantandEquipmentiscarriedatcostlessaccumulateddepreciation/amortisationandaccumulatedimpairment losses, if any.
Property,PlantandEquipmentacquiredasreplacementoftheexistingassetsarecapitalizedanditscorrespondingreplacedassetsremoved/retiredfromactiveusearederecognized.
Ifthecostofthereplacedpartorearlierinspectionisnotavailable,theestimatedcostofsimilarnewparts/inspectionisusedasanindicationofwhatthecostoftheexistingpart/inspectioncomponentwaswhentheitemwasacquiredorinspectionwascarriedout.
Inthecaseofcommissionedassets,depositworks/cost-pluscontractswherefinalsettlementofbillswithcontractorsisyettobeeffected,capitalizationisdoneonprovisionalbasissubjecttonecessaryadjustmentsintheyearoffinalsettlement.
273
Assetsandsystemscommontomorethanonetransmissionsystemarecapitalizedonthebasisoftechnicalestimates/assessments. Transmission system assets are considered as ready for intended use from the date of commercial operation declared in terms of
CERCTariffRegulationsandcapitalizedaccordingly.Howeverincaseofsubsidiaries,transmissionsystemassetsareconsideredasready for intended use after meeting the conditions as stipulated in Transmission Service Agreement (TSA) and capitalized accordingly.
Thecostoflandincludesprovisionaldeposits,payments/liabilitiestowardscompensation,rehabilitationandotherexpenseswhereverpossession of land is taken.
Expenditureonleveling,clearingandgradingoflandiscapitalizedaspartofcostoftherelatedbuildings. Spares parts whose cost is `5,00,000/-andabove,standbyequipmentandservicingequipmentwhichmeetstherecognitioncriteria
ofProperty,PlantandEquipmentarecapitalized. Subsequent costs Subsequentexpenditureisrecognizedasanincreaseincarryingamountofassetswhenitisprobablethatfutureeconomicbenefits
derivingfromthecostincurredwillflowtotheGroupandcostoftheitemcanbemeasuredreliably ThecostofreplacingpartofanitemofProperty,Plant&Equipmentisrecognizedinthecarryingamountoftheitemifitisprobable
thatfutureeconomicbenefitsembodiedwithinthepartwillflowtotheGroupanditscostcanbemeasuredreliably.Thecarryingamountofthereplacedpartisderecognized.Thecostsoftheday-to-dayservicingofproperty,plantandequipmentarerecognisedintheStatementofProfit&Lossasincurred.
Derecognition AnitemofProperty,PlantandEquipmentisderecognizedwhennofutureeconomicbenefitsareexpectedfromtheiruseorupon
disposal. Thegainorlossarisingonthedisposalorretirementofanitemofproperty,plantandequipmentisdeterminedasthedifference
betweenthenetdisposalproceedsandthecarryingamountoftheassetandisrecognisedintheStatementofProfitandLossonthedate of disposal or retirement.
2.4 Capital Work-In-Progress (CWIP) Costofmaterial,erectionchargesandotherexpensesincurredfortheconstructionofProperty,PlantandEquipmentareshownas
CWIPbasedonprogressoferectionworktillthedateofcapitalization. ExpenditureofCorporateoffice,RegionalOfficesandProjects, attributable to constructionofproperty,plantandequipmentare
identifiedandallocatedonasystematicbasistothecostoftherelatedassets. Interestduringconstructionandexpenditure(net)allocatedtoconstructionasperpolicyabovearekeptasaseparateitemunder
CWIPandapportionedtotheassetsbeingcapitalizedinproportiontotheclosingbalanceofCWIP. Depositworks/cost-pluscontractsareaccountedforonthebasisofstatementreceivedfromthecontractorsortechnicalassessment
of work completed. Unsettledliabilityforpricevariation/exchangeratevariationincaseofcontractsisaccountedforonestimatedbasisaspertermsof
the contracts. 2.5 Intangible Assets and Intangible Assets under development The Group had opted to consider the carrying value of Intangible Assets as per previous GAAP on the date of transition to Ind AS (1st
April2015)tobethedeemedcostasperIndAS101‘First-timeAdoptionofIndianAccountingStandards’. Intangible assets are measured on initial recognition at cost. After initial recognition, intangible assets are carried at cost less any
accumulated amortisation and accumulated impairment losses. Subsequent expenditure on already capitalized Intangible assets is capitalised when it increases the future economic benefits
embodiedinanexistingassetandisamortisedprospectively. Thecostofsoftware(whichisnotanintegralpartoftherelatedhardware)acquiredforinternaluseandresultinginsignificantfuture
economicbenefitsisrecognizedasanintangibleassetwhenthesameisreadyforitsuse. Afforestationchargesforacquiringright-of-wayforlayingtransmissionlinesareaccountedforasintangibleassetsonthedateof
capitalization of related transmission lines. Expenditureincurred,eligibleforcapitalizationundertheheadIntangibleAssets,arecarriedas“IntangibleAssetsunderDevelopment”
till such assets are ready for their intended use. Expenditureonresearchshallberecognisedasanexpensewhenitisincurred. ExpenditureondevelopmentshallberecognisedasIntangibleassetifitmeetstheeligibilitycriteriaasperIndAS38‘Intangible
Assets’,otherwiseitshallberecognisedasanexpense. AnitemofIntangibleassetisderecognisedupondisposalorwhennofutureeconomicbenefitsareexpectedfromitsuseordisposal.
GainsorlossesarisingfromderecognitionofanintangibleassetaremeasuredasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetandarerecognisedintheStatementofProfitandLosswhentheassetisderecognised.
Consolidated Financial Statements
274
2.6 Investment property The Group had opted to consider the carrying value of Investment Property as per previous GAAP on the date of transition to Ind AS
(1stApril2015)tobethedeemedcostasperIndAS101‘First-timeAdoptionofIndianAccountingStandards’. Investmentpropertycomprisesportionsoflandand/orbuildingsthatareheldforlongtermrentalyieldsand/orforcapitalappreciation. Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment
properties are carried at cost less accumulated depreciation and accumulated impairment loss, if any. Transfers to or from investment property is made when and only when there is a change in use. Investmentpropertiesarederecognisedeitherwhentheyhavebeendisposedofforwhentheyarepermanentlywithdrawnfromuse
andnofutureeconomicbenefitisexpectedfromtheirdisposal.Thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetisrecognisedasprofitorlossintheperiodofderecognition.
2.7 Depreciation / Amortisation Property, Plant and Equipment Depreciation/amortisationontheassetsrelatedtotransmissionbusinessisprovidedonstraightlinemethodfollowingtheratesand
methodologynotifiedbytheCERCforthepurposeofrecoveryoftariffandonassetsoftelecomandconsultancybusinessisprovidedonstraight linemethodasperuseful life specified inSchedule IIof theCompaniesAct,2013except forassets specified in thefollowing paragraphs.
ULDC assets commissioned prior to 1st April 2014 are depreciated on Straight LineMethod@ 6.67% per annum. Such assetscommissioned on or after 1stApril2014aredepreciatedonstraightlinemethodfollowingtheratesandmethodologynotifiedbytheCERCforthepurposeofrecoveryoftariff.
Inthecaseofproperty,plantandequipmentofNationalThermalPowerCorporationLimited(NTPC),NationalHydro-ElectricPowerCorporationLimited(NHPC),North-EasternElectricPowerCorporationLimited(NEEPCO),NeyveliLigniteCorporationLimited(NLC)transferred w.e.f. April 1, 1992, Jammu and Kashmir Lines w.e.f. April 1, 1993, and Tehri Hydro Development Corporation Limited (THDC) w.e.f. August 1, 1993, depreciation is charged based on gross block as indicated in transferor’s books with necessary adjustmentssothatthelifeoftheassetsaslaiddownintheCERCnotificationfortariffismaintained.
Leasehold land is fully amortized over lease period or life of the related plant whichever is lower in accordance with the rates and methodologyspecifiedinCERCTariffRegulation.Leaseholdlandacquiredonperpetualleaseisnotamortized.
DepreciationonbuildingsheldasinvestmentpropertyisprovidedonstraightlinemethodasspecifiedinScheduleIIofTheCompaniesAct, 2013.
Depreciationonsparesparts,standbyequipmentandservicingequipmentwhicharecapitalized,isprovidedonstraightlinemethodfrom the date they are available for use over the remaining useful life of the related assets of transmission business, following the ratesandmethodologynotifiedbytheCERC.
Depreciation on following assets is provided based on estimated useful life as per technical assessment. Particulars Useful life a. Computers&Peripherals 3Years b. Servers&NetworkComponents 5years Residual value of above assets is considered as Nil. Mobilephonesarechargedoffintheyearofpurchase.
FixedAssetscosting`5,000/-orless,arefullydepreciatedintheyearofacquisition.Wherethecostofdepreciableproperty,plantandequipmenthasundergoneachangeduetoincrease/decreaseinlongtermmonetaryitemsonaccountofexchangeratefluctuation,priceadjustment,changeindutiesorsimilarfactors,theunamortizedbalanceofsuchassetisdepreciatedprospectivelyattheratesandmethodologyasspecifiedbytheCERCTariffRegulations,exceptfortelecomandconsultancybusinessassetswhereresiduallifeisdeterminedonthebasisofusefullifeofproperty,plantandequipmentasspecifiedin Schedule II of the Companies Act, 2013.Depreciationonadditionsto/deductionsfromProperty,PlantandEquipmentduringtheyearischargedonpro-ratabasisfrom/uptothedateonwhichtheassetisavailableforuse/disposed.The residual values, useful lives and methods of depreciation for assets other than assets related to transmission business are reviewedateachfinancialyear-endandadjustedprospectively,whereverrequired.Intangible AssetsCost of software capitalized as intangible asset is amortized over the period of legal right to use or 3 years, whichever is less with Nil residual value. AfforestationchargesareamortizedoverthirtyfiveyearsfromthedateofcapitalizationofrelatedtransmissionassetsfollowingtheratesandmethodologynotifiedbyCentralElectricityRegulatoryCommission(CERC)TariffRegulations.Telecom Licenses are amortised on straight line basis over their respective useful lives.
275
Expenditureondevelopmentof1200kvTransmissionSystemshallbeamortisedoveraperiodof10years.Amortisationonadditionsto/deductionsfromIntangibleAssetsduringtheyearischargedonpro-ratabasisfrom/uptothedateonwhichtheassetisavailableforuse/disposed.Theamortizationperiodandtheamortizationmethodforanintangibleassetarereviewedateachfinancialyear-endandareaccountedforaschangeinaccountingestimatesinaccordancewithIndAS8“AccountingPolicies,ChangesinAccountingEstimatesandErrors
2.8 Borrowing CostsAlltheborrowedfunds(exceptshorttermfundsforworkingcapital)areearmarkedtospecificprojects.Theborrowingcosts(includingbondissueexpenses,interest,discountonbonds,frontendfee,guaranteefee,managementfeeetc.)areallocatedtotheprojectsin proportion to the funds so earmarked.Borrowingcostsdirectlyattributabletotheacquisitionorconstructionofqualifyingassetsarecapitalised(netofincomeontemporarydeploymentoffunds)aspartofthecostofsuchassetstilltheassetsarereadyfortheintendeduse.Qualifyingassetsareassetswhichtake a substantial period of time to get ready for their intended use.Other borrowing costs are charged to revenue.
2.9 Impairment of non-financial assetsThecarryingamountsoftheGroups’snon-financialassetsarereviewedateachreportingdatetodeterminewhetherthereisanyindicationofimpairmentconsideringtheprovisionsofIndAS36‘ImpairmentofAssets’.Ifanysuchindicationexists,thentheasset’srecoverable amount is estimated.Therecoverableamountofanassetorcash-generatingunitisthehigherofitsfairvaluelesscoststodisposalanditsvalueinuse.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Forthepurposeofimpairmenttesting,assetsthatcannotbetestedindividuallyaregroupedtogetherintothesmallestgroupofassetsthatgeneratescashinflowsfromcontinuingusethatarelargelyindependentofthecashinflowsofotherassetsorgroupsofassets(the“cash-generatingunit”,or“CGU”).AnimpairmentlossisrecognizedifthecarryingamountofanassetoritsCGUexceedsitsestimatedrecoverableamount.Impairmentlossesarerecognizedinthestatementofprofitandloss.ImpairmentlossesrecognizedinrespectofCGUsarereducedfromthecarryingamountsoftheassetsoftheCGU.Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreasedornolongerexists.Animpairmentlossisreversediftherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversedonlytotheextentthattheasset’scarryingamountdoesnotexceedthecarrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
2.10 Cash and cash equivalents Cashandcashequivalentsincludecashonhandandatbank,anddepositsheldatcallwithbankshavingamaturityofthreemonths
orlessfromthedateofacquisitionthatarereadilyconvertibletoaknownamountofcashandaresubjecttoaninsignificantriskofchanges in value.
2.11 InventoriesInventories are valued at lower of the cost, determined on weighted average basis and net realizable value.Steel scrap and conductor scrap are valued at estimated realizable value or book value, whichever is less.SpareswhichdonotmeettherecognitioncriteriaasProperty,PlantandEquipmentincludingsparepartswhosecost is lessthan`5,00,000/-arerecordedasinventories.Surplus materials as determined by the management are held for intended use and are included in the inventory.The diminution in the value of obsolete, unserviceable and surplus stores and spares is ascertained on review and provided for.
2.12 Leases i) As a Lessor
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception ofthelease.Thearrangementis,orcontains,aleaseiffulfillmentofthearrangementisdependentontheuseofaspecificassetorassetsandthearrangementconveysarighttousetheassetorassets,evenifthatrightisnotexplicitlyspecifiedinanarrangement.Aleaseisclassifiedattheinceptiondateasafinanceleaseoranoperatinglease.
a) Finance leases Aleasethattransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanassetisclassifiedasafinancelease. StatesectorUnifiedLoadDispatchCentre(ULDC)/FiberOpticCommunicationAssets(FOC)/Bilaterallineassetsleasedtothe
beneficiariesareconsideredasFinanceLease.NetinvestmentinsuchleasedassetsarerecordedasreceivableatthelowerofthefairvalueoftheleasedpropertyandthepresentvalueoftheminimumleasepaymentsalongwithaccretioninsubsequentyearsisaccountedforasLeaseReceivablesundercurrentandnon-currentotherfinancialassets.Wherevergrant-in-aidisreceivedforconstructionofStateSectorULDC,leasereceivableisaccountedfornetofsuchgrant.
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TheinterestelementofleaseisaccountedintheStatementofProfitandLossovertheleaseperiodbasedonapatternreflectingaconstantperiodicrateofreturnonthenetinvestmentasperthetariffnotifiedbyCERC.
FERV on foreign currency loans relating to leased assets is adjusted to the amount of lease receivables and is amortised over the remaining tenure of lease. FERV recovery (as per CERC norms) from the constituents is recognised net of such amortised amount.
b) Operating leases Anoperating lease is a leaseother thana finance lease. Leases inwhicha significantportionof the risks and rewardsof
ownershipareretainedbythelessorareclassifiedasoperatingleases. Foroperatingleases,theassetiscapitalizedasproperty,plantandequipmentanddepreciatedoveritseconomiclife.Rental
income from operating lease is recognized over the term of the arrangement.ii) As a Lesseea) Finance lease
Leasesofproperty,plantandequipmentwheretheGroup,aslesseehassubstantiallyallrisksandrewardsofownershipareclassifiedasfinancelease.Oninitialrecognition,assetsheldunderfinanceleasearerecordedasproperty,plantandequipmentandrelatedliabilityisrecognizedunderborrowings.Atinceptionofthelease,financeleasesarerecordedatamountequaltofairvalueofleasedassetoriflowerthepresentvalueofminimumleasepayments.Minimumleasepaymentsunderfinanceleasesareapportionedbetweenthefinanceexpenseandreductionofthefinanceliability.
Thefinanceexpenseisallocatedtoeachperiodduringtheleasetermsoastoproduceaconstantperiodicrateofinterestonthe remaining balance of the liability.
b) Operating leases Paymentsmadeunderoperatingleasesarerecognizedasanexpenseovertheleaseterm.
2.13 Employee benefits 2.13.1 Defined contribution plans Adefinedcontributionplanisapost-employmentbenefitplanunderwhichanentitypaysfixedcontributionsinto
separate entities (Funds) and will have no legal or constructive obligation to pay further contributions, if the Fund does notholdsufficientassetstopayallemployee’sbenefitsrelatedtoemployeeserviceinthecurrentandpriorperiods.Obligationsforcontributionstodefinedcontributionplansarerecognizedasanemployeebenefitsexpenseinthestatementofprofitandlossintheperiodduringwhichservicesarerenderedbyemployees.
TheGrouphasadefinedcontributionpensionschemewhichisadministeredthroughaseparatetrust.Theobligationof theGroup is tocontribute to the trust to theextentofamountnotexceeding30%ofbasicpayanddearnessallowance less employer’s contribution towards provident fund, gratuity, post retirement medical facility (PRMF)or any otherretirementbenefits.Thecontributionstothefundfortheyeararerecognizedasanexpenseandchargedtothestatementofprofitandloss.
2.13.2 Defined benefit plans Adefinedbenefitplanisapost-employmentbenefitplanotherthanadefinedcontributionplan.TheGroup’sliability
towardsgratuity,post-retirementmedicalfacility,baggageallowanceforsettlementathometownafterretirement,longserviceawardonretirementandprovidentfundschemetotheextentofinterestliabilityonprovidentfundcontributionareinthenatureofdefinedbenefitplans.
Thegratuity is fundedby theGroupand ismanagedby separate trust. TheGrouphasPost-Retirement MedicalFacility (PRMF), under which retired employee and the spouse are provided medical facilities in the Group empanelled hospitals.Theycanalsoavailtreatmentasout-patientsubjecttoaceilingfixedbytheGroup.
TheGrouppaysfixedcontributiontoProvidentFundatpredeterminedratestoaseparatetrust,whichinveststhefundsinpermittedsecurities.Thecontributionstothefundfortheyeararerecognizedasexpenseandarechargedtothestatementofprofitandloss.TheobligationoftheGroupislimitedtosuchfixedcontributionsandtoensureaminimumrateofinterestoncontributionstothemembersasspecifiedbytheGovernmentofIndia(GoI).
TheGrouphasschemesforpaymentofbaggageallowancetowardsexpensesforsettlementathometownforthesuperannuatedemployees&theirdependentsandforprovidingaLongServiceAwardtoallregularemployeesoftheGroup on superannuation.
TheGroup’snetobligationinrespectofdefinedbenefitplansiscalculatedseparatelyforeachplanbyestimatingtheamountoffuturebenefitthatemployeeshaveearnedinreturnfortheirserviceinthecurrentandpriorperiods;thatbenefitisdiscountedtodetermineitspresentvalue.Anyunrecognizedpastservicecostsandthefairvalueofanyplan assets are deducted. The discount rate is based on the prevailing market yields of Indian government securities asatthereportingdatethathavematuritydatesapproximatingthetermsoftheGroup’sobligationsandthataredenominatedinthesamecurrencyinwhichthebenefitsareexpectedtobepaid.
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Thecalculationisperformedannuallybyaqualifiedactuaryusingtheprojectedunitcreditmethod.WhenthecalculationresultsinabenefittotheGroup,therecognizedassetislimitedtothetotalofanyunrecognizedpastservicecostsandthepresentvalueofeconomicbenefitsavailableintheformofanyfuturerefundsfromtheplanorreductionsinfuturecontributionstotheplan.AneconomicbenefitisavailabletotheGroupifitisrealizableduringthelifeoftheplan, or on settlement of the plan liabilities. Any actuarial gains or losses are recognized in OCI in the period in which they arise.
Whenthebenefitsofaplanareimproved,theportionoftheincreasedbenefitrelatingtopastservicebyemployeesisrecognizedinthestatementofprofitandlossonastraight-linebasisovertheaverageperioduntilthebenefitsbecome vested. To the extent that the benefits vest immediately, the expense is recognized immediately in thestatementofprofitandloss.
2.13.3 Other long-term employee benefits BenefitsundertheGroup’sleaveencashmentandEmployeeFamilyEconomicRehabilitationSchemeconstituteother
longtermemployeebenefits. TheGroup’snetobligationinrespectofleaveencashmentistheamountoffuturebenefitthatemployeeshaveearned
inreturnfortheirserviceinthecurrentandpriorperiods;thatbenefitisdiscountedtodetermineitspresentvalue.The discount rate is based on the prevailing market yields of Indian government securities as at the reporting date thathavematuritydatesapproximatingthetermsoftheGroup’sobligations.Thecalculationisperformedusingtheprojectedunitcreditmethod.Anyactuarialgainsorlossesarerecognizedinthestatementofprofitandlossintheperiod in which they arise.
As per the Group’s Employee Family Economic Rehabilitation scheme, which is optional, in the event of death or permanenttotaldisabilityofanemployee,thedependent(s)ortheemployee,asthecasemaybe, ispaidafixedamount based on the last salary drawn by the employee till the notional date of superannuation of the employee upondepositingthefinalprovidentfundandgratuityamountwhichwillbeinterestfree.
2.13.4 Short-term benefits Short termemployeebenefitobligationsaremeasuredonanundiscountedbasisandareexpensedastherelated
service is provided. AliabilityisrecognizedfortheamountexpectedtobepaidunderperformancerelatedpayiftheGrouphasapresent
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.
2.14 Financial instruments Afinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityorequityinstrumentof
another entity. Financial Assets Classification TheGroupclassifiesitsfinancialassetsinthefollowingcategories: • atamortisedcost, • atfairvaluethroughothercomprehensiveincome Theclassificationdependsonthefollowing: • theentity’sbusinessmodelformanagingthefinancialassetsand • thecontractualcashflowcharacteristicsofthefinancialasset. Initial recognition and measurement Allfinancialassetsarerecognisedinitiallyatfairvalueplus,inthecaseoffinancialassetsnotrecordedatfairvaluethroughprofitor
loss,transactioncosts,ifany,thatareattributabletotheacquisitionofthefinancialasset. Subsequent measurement Debt Instruments at Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequentlymeasuredatamortisedcostisrecognisedinprofitorlosswhentheassetisderecognisedorimpaired.Interestincomefromthesefinancialassetsisincludedinfinanceincomeusingtheeffectiveinterestratemethod.
Debt Instruments at Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractualcashflowsandforsellingthefinancialassets,wheretheassets’cashflowsrepresentsolelypaymentsofprincipalandinterest, are measured at fair value through other comprehensive income (FVOCI).
Equity investments AllequityinvestmentsinscopeofIndAS109‘FinancialInstruments’aremeasuredatfairvalue.TheGroupmay,oninitialrecognition,
make an irrevocable election to present subsequent changes in the fair value in other comprehensive income (FVOCI) on aninstrument¬by-instrumentbasis.
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ForequityinstrumentsclassifiedasatFVOCI,allfairvaluechangesontheinstrument,excludingdividendsarerecognizedintheOCI.ThereisnorecyclingoftheamountsfromOCItoProfitorLoss,evenonsaleofinvestment.However,theGroupmaytransferthecumulativegainorlosswithinequity.
De-recognition of financial assets Afinancialassetisderecognizedonlywhen - Therighttoreceivecashflowsfromtheassetshaveexpired,or - Thegrouphastransferredtherightstoreceivecashflowsfromthefinancialassetor - Retainsthecontractualrightstoreceivethecashflowsofthefinancialassets,butassumesacontractualobligationtopaythe
cashflowstooneormorerecipients. Impairment of financial assets: For trade receivables, the group applies the simplified approach required by Ind AS 109 Financial Instruments, which requires
expectedlifetimelossestoberecognisedfrominitialrecognitionofthereceivables. For recognitionof impairment lossonotherfinancialassetsand riskexposure, theGroupdetermineswhether therehasbeena
significantincreaseinthecreditrisksinceinitialrecognition.Ifcreditriskhasnotincreasedsignificantly,12-monthExpectedCreditLoss(ECL) isusedtoprovidefor impairment loss.However, ifcreditriskhas increasedsignificantly, lifetimeECL isused.If, inasubsequentperiod,creditqualityoftheinstrumentimprovessuchthatthereisnolongerasignificantincreaseincreditrisksinceinitialrecognition,thentheentityrevertstorecognizingimpairmentlossallowancebasedon12-monthECL.
Financial Liabilities FinancialliabilitiesoftheGrouparecontractualobligationtodelivercashoranotherfinancialassettoanotherentityortoexchange
financialassetsorfinancialliabilitieswithanotherentityunderconditionsthatarepotentiallyunfavorabletotheGroup. TheGroup’sfinancialliabilitiesincludeloans&borrowings,tradeandotherpayables. Classification, initial recognition and measurement Financialliabilitiesarerecognisedinitiallyatfairvalueminustransactioncoststhataredirectlyattributabletotheissueoffinancial
liabilities.Financialliabilitiesareclassifiedassubsequentlymeasuredatamortizedcost.Amortisedcostiscalculatedbytakingintoaccountanydiscountorpremiumonacquisitionandfeesorcoststhatareanintegralpartoftheeffectiveinterestrate(EIR).Anydifferencebetweentheproceeds(netoftransactioncosts)andtheredemptionamountisrecognisedintheStatementofProfitandLoss over the period of the borrowings using the EIR. Subsequent measurementAfterinitialrecognition,financialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheEIRmethod.GainsandlossesarerecognisedinStatementofProfitorLosswhentheliabilitiesarederecognisedaswellasthroughtheEIRamortisationprocess.TheEIRamortisationisincludedasfinancecostsintheStatementofProfitandLoss.De-recognition of financial liabilityAfinancialliabilityisderecognisedwhentheobligationundertheliabilityisdischargedorcancelledorexpireswhenanexistingliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasthederecognitionoftheoriginalliabilityandtherecognitionofanewliability.Thedifferencebetweenthecarryingamountofafinancialliabilitythathasbeenextinguishedortransferredtoanotherpartyandtheconsiderationpaid,includinganynon-cashassetstransferredorliabilitiesassumed,isrecognisedinStatementofProfitandLossasotherincomeorfinancecost.Offsetting of financial instrumentsFinancialassetsandfinancialliabilitiesareoffsetandthenetamountisreportedintheBalanceSheetifthereisacurrentlyenforceablelegalrighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasis,torealisetheassetsandsettletheliabilities simultaneously.
2.15 Foreign Currency Translation(a) Functional and presentation currency ItemsincludedinthefinancialstatementsoftheGrouparemeasuredusingthecurrencyoftheprimaryeconomicenvironment
inwhichtheGroupoperates(‘thefunctionalcurrency’).ThefinancialstatementsarepresentedinIndianRupees(Rupeesor`), which is the Group’s functional and presentation currency.
(b) Transactions and balances Transactionsinforeigncurrenciesareinitiallyrecordedattheexchangeratesprevailingonthedateofthetransaction.Foreign
currency monetary items are translated with reference to the rates of exchange ruling on the date of the Balance Sheet. Non-Monetaryitemsdenominatedinforeigncurrencyarereportedattheexchangeraterulingonthedateofinitialrecognitionofthenon-monetaryprepaymentassetordeferred incomeliability,orthedatethatrelated itemisrecognized inthefinancialstatements, whichever is earlier. In case the transaction is recognized in stages, then transaction date is established for each stage.
Foreignexchangegainsandlosses(otherthanrelatedtoforeigncurrencyloansoutstanding)arepresentedinthestatementofprofitandlossonanetbasiswithinothergains/(losses).
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TheGrouphasavailed theexemptionavailable in IndAS101, to continue thepolicyadopted foraccounting forexchangedifferencesarisingfromtranslationoflong-termforeigncurrencymonetaryliabilitiesoutstandingasonMarch31,2016.
Foreign currency loans outstanding as on March 31, 2016: ForeignExchangeRateVariation(FERV)arisingonsettlement/translationofsuchforeigncurrencyloansrelatingtoproperty,
plantandequipment/capitalwork-in-progressisadjustedtothecarryingcostofrelatedassetsandisrecoverable/payablefromthebeneficiariesonactualpaymentbasisasperCentralElectricityRegulatoryCommission(CERC)normsw.e.f.1st April, 2004 or DateofCommercialOperation(DOCO)whicheverislater.TheaboveFERVtotheextentrecoverableorpayableaspertheCERCnorms is accounted for as follows:
i) FERVrecoverable/payableadjustedtocarryingcostofproperty,plantandequipmentisaccountedforas‘Deferredforeigncurrency fluctuation asset/liability a/c’ with a corresponding credit/debit to ‘Deferred income/expenditure from foreigncurrencyfluctuationa/c’.
ii) ‘Deferredincome/expenditurefromforeigncurrencyfluctuationa/c’isamortizedintheproportioninwhichdepreciationischarged on such FERV.
iii) Theamountrecoverable/payableasperCERCnormsonyeartoyearbasis isadjustedtothe ‘Deferredforeigncurrencyfluctuationasset/liabilitya/c’withcorrespondingdebit/credittothetradereceivables.
FERVearlier charged toStatementofProfitandLoss& included in the capital cost for thepurposeof tariff isadjustedagainst‘Deferredforeigncurrencyfluctuationasset/liabilitya/c’.
FERVarisingoutofsettlement/translationoflongtermmonetaryitems(otherthanforeigncurrencyloans)relatingtoPropertyPlant&Equipment/CWIPisadjustedinthecarryingcostofrelatedassets.
FERVarisingduringtheconstructionperiodfromsettlement/translationofmonetaryitems(otherthannoncurrentloans)denominatedinforeigncurrencytotheextentrecoverable/payabletothebeneficiariesascapitalcostasperCERCtariffRegulationareaccountedas Regulatory Deferral Account Balances. Transmission charges recognised on such amount is adjusted against above account. Other exchangedifferencesarerecognizedasincomeorexpensesintheperiodinwhichtheyarise.
Foreign currency loans drawn on or after April 1, 2016: Exchangedifferencesarisingfromforeigncurrencyborrowingtotheextentregardedasanadjustmenttointerestcostsaretreated
asborrowingcost.OtherexchangedifferencesarerecognizedintheStatementofProfitandLoss. ExchangedifferencetotheextentrecoverableasperCERCtariffregulationsarerecognizedasRegulatoryDeferralAccountBalances
throughStatementofProfitandLoss. (c) Foreign Group Companies Theresultsandfinancialpositionofforeignoperations(noneofwhichhasthecurrencyofahyperinflationaryeconomy)that
haveafunctionalcurrencydifferentfromthepresentationcurrencyaretranslatedintothepresentationcurrencyasfollows:i) Assets and liabilities are translated at closing rate at the date of that balance sheet.ii) Incomeandexpensesaretranslatedataverageexchangerates(unlessthis isnotthereasonableapproximationofthe
cumulativeeffectoftheratesprevailingonthetransactiondateinwhichcaseincomeandexpensesaretranslatedatthedate of transactions) and
iii) Alltheexchangedifferencesarerecognisedinothercomprehensiveincome. 2.16 Income Tax Incometaxexpenserepresentsthesumofcurrentanddeferredtax.TaxisrecognisedintheStatementofProfitandLoss,exceptto
theextentthatitrelatestoitemsrecogniseddirectlyinequityorothercomprehensiveincome.Inthiscasethetaxisalsorecogniseddirectlyinequityorinothercomprehensiveincome.
Current income tax Thecurrent tax isbasedontaxableprofit for theyearunder the tax lawsenactedandapplicable to thereportingperiod in the
countrieswherethegroupoperateandgeneratetaxableincome. Deferred tax DeferredtaxisrecognisedontemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesintheGroup’sfinancial
statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the BalanceSheetmethod.Deferredtaxassetsaregenerallyrecognisedforalldeductibletemporarydifferences,unusedtaxlossesandunusedtaxcredits totheextent that it isprobablethat futuretaxableprofitswillbeavailableagainstwhichthosedeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditscanbeutilised.ThecarryingamountofdeferredtaxassetsisreviewedateachBalanceSheetdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitswillbeavailableagainstwhichthetemporarydifferencescanbeutilised.
Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheperiodinwhichtheliabilityissettledortheassetrealised,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedbytheBalanceSheetdate.
Deferredtaxliabilitiesarenotrecognisedfortemporarydifferencesbetweenthecarryingamountandtaxbasesof investmentinsubsidiarieswherethegroupisabletocontrolthetimingofthereversalofthetemporarydifferencesandit isprobablethatthedifferenceswillnotreverseinforeseeablefuture.
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Deferredtaxassetsandliabilitiesareoffsetifthereisalegallyenforceablerighttooffsetcurrenttaxliabilitiesandassets,andtheyrelatetoincometaxesleviedbythesametaxauthority.
2.17 Regulatory Deferral Account Balances Certainexpensesandincome,allowedunderCERCregulationstobereimbursedby/passedontobeneficiariesinfuture,aretobe
accountedintheStatementofProfitandLossaspertheprovisionsofIndAS114‘RegulatoryDeferralAccounts’.Suchexpensesandincome,totheextentrecoverable/payableaspartoftariffunderCERCRegulationsaretreatedasRegulatoryDeferralAssets/Liabilities.
The Group presents separate line items in the Balance Sheet for: (a) thetotalofallRegulatoryDeferralAccountDebitBalances;and (b) the total of all Regulatory Deferral Account Credit Balances. AseparatelineitemispresentedintheprofitorlosssectionoftheStatementofProfitandLossforthenetmovementinallRegulatory
Deferral Account Balances for the reporting period. Regulatory deferral accounts balances are adjusted in the year in which the same become recoverable from or payable to the
beneficiaries 2.18 Revenue Revenueismeasuredbasedontheconsiderationspecifiedinacontractwithacustomerandexcludesamountscollectedonbehalfof
third parties. The Group recognizes revenue when it transfers control over a product or service to a customer. The Group has applied IndAS115usingthecumulativeeffectmethodandthereforethecomparativeinformationhasnotbeenrestatedandcontinuestobereportedunderIndAS18andIndAS11.
In the comparative period, revenue was measured at the fair value of the consideration received or receivable. Amounts disclosed as revenuearenetofreturns,tradeallowances,rebates,GSTandvalueaddedtaxes.
Significant Financing Component Wheretheperiodbetweenthetransferofthepromisedgoodsorservicestothecustomerandpaymentbythecustomerexceeds
oneyear,theGroupassessestheeffectsofsignificantfinancingcomponent inthecontract.Asaconsequence,theGroupmakesadjustmentinthetransactionpricesfortheeffectsoftimevalueofmoney.Nosuchadjustmenthasbeenmadeforthecomparativeperiod.
2.18.1 Revenue from Operations Transmission TransmissionIncomeisaccountedforbasedontariffordersnotifiedbytheCERC.Incaseoftransmissionprojectswherefinaltariff
ordersareyettobenotified,transmissionincomeisaccountedforonprovisionalbasisaspertariffregulationsandordersoftheCERCinsimilarcases.Difference,ifany,isaccountedonissuanceoffinaltariffordersbytheCERC.TransmissionIncomeinrespectofadditionalcapitalexpenditureincurredafterthedateofcommercialoperationisaccountedforbasedonexpenditureincurredonyeartoyearbasisasperCERCtariffregulations.Asateachreportingdate,transmissionincomeincludesanaccrualforservicesrenderedtothecustomersbutnotyetbilledi.e.UnbilledRevenue.HoweverincaseofsubsidiariestransmissionIncomeisaccountedforbasedonordersissuedbyCERCu/s63ofElectricityAct2003foradoptionoftransmissioncharges.TheTransmissionsystem incentive/disincentive isaccounted forbasedoncertificationofavailabilityby therespectiveRegionalPowerCommitteesandinaccordancewiththeCERCtariffregulations.WherecertificationbyRegionalPowerCommittees(RPCs)isnotavailable,incentive/disincentiveisaccountedforonprovisionalbasisasperestimateofavailabilitybytheGroupanddifferences,ifanyisaccountedoncertificationbyRPCs.Advanceagainstdepreciation(AAD),formingpartoftariffpertaininguptotheblockperiod2004-09,tofacilitaterepaymentofloans,wasreducedfromtransmissionincomeandconsideredasdeferredincometobeincludedintransmissionincomeinsubsequentyears.The outstanding deferred income in respect of AAD is recognized as transmission income, after twelve years from the end of the financialyearinwhichtheassetwascommissioned,totheextentdepreciationrecoveredinthetariffduringtheyearislowerthandepreciation charged in the accounts.Telecom ServicesIncomefromTelecomServices,netofdowntimecredit,isrecognisedonthebasisoftermsofagreements/purchaseordersfromthecustomers.UpfrontfeereceivedinadvanceunderlongtermcontractsprovidingIndefeasibleRighttoUse(IRU),isrecognisedasrevenue on the basis of estimation of revenue over the period of contract. In the comparative period, the same is recognized on a straight line basis.Consultancy ServicesInrespectof‘Cost-plus-consultancycontracts’,involvingexecutiononbehalfoftheclient,revenueisrecognizedinproportiontothestage of completion of the work performed at the reporting date, which is determined based on input method.Income from other consultancy contracts are accounted for on technical assessment of progress of services rendered.In the comparative period, in respect of ‘Cost-plus-consultancy contracts’, involving execution on behalf of the client, income isaccounted for (wherever initial advances received) in phased manner as under:
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a) 10%ontheissueofNoticeInvitingTenderforexecutionb) 5%ontheAwardofContractsforexecutionc) Balance85%onthebasisofactualprogressofworkincludingsuppliesIncome from other consultancy contracts are accounted for on technical assessment of progress of services rendered. 2.18.2 Other IncomeInterestincomeisrecognized,whennosignificantuncertaintyastomeasurabilityorcollectabilityexists,onatimeproportionbasistakingintoaccounttheamountoutstandingandtheapplicableinterestrate,usingtheeffectiveinterestratemethod(EIR).Surcharge recoverable from trade receivables, liquidated damages, warranty claims and interest on advances to suppliers arerecognizedwhennosignificantuncertaintyastomeasurabilityandcollectabilityexists.Application Fees towards Long Term Open Access (LTOA) as per CERC Guidelines is accounted for on receipt.Scrapotherthansteelscrap&conductorscrapareaccountedforasandwhensold.
Dividend income is recognized when right to receive payment is established. Insuranceclaimsforlossofprofitareaccountedforintheyearofacceptance.Otherinsuranceclaimsareaccountedfor
based on certainty of realization. Revenue from rentals and operating leases is recognized on an accrual basis in accordance with the substance of the relevant
agreement. 2.19 Government Grants
Grants-in-aid fromCentral Government or other authorities towards capital expenditure for projects, betterment of transmissionsystemsandspecificdepreciableassetsinitiallyaretreatedasdeferredincomewhenthereisareasonableassurancethattheywillbereceived and the Group will comply with the conditions associated with the grant. Deferred Income is recognized in the Statement ofProfitandLossovertheusefullifeofrelatedassetinproportiontowhichdepreciationontheseassetsisprovided.GrantsthatcompensatetheGroupforexpensesincurredarerecognizedovertheperiodinwhichtherelatedcostsareincurredanddeductedfromtherelatedexpenses.
2.20 DividendsAnnual dividend distribution to the shareholders is recognised as a liability in the period in which the dividends are approved by the shareholders.AnyinterimdividendpaidisrecognisedonapprovalbyBoardofDirectors.Dividendpayableandcorrespondingtaxondividenddistributionisrecogniseddirectlyinequity.
2.21 Provisions and Contingenciesa) ProvisionsProvisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable thatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscounted.UnwindingofthediscountisrecognisedintheStatementofProfitandLossasafinancecost.ProvisionsarereviewedateachBalanceSheetdateandareadjustedtoreflectthecurrentbestestimate.b) ContingenciesContingentliabilitiesaredisclosedonthebasisofjudgmentofthemanagement/independentexperts.Thesearereviewedateachbalancesheetdateandareadjustedtoreflectthecurrentmanagementestimate.Contingentliabilitiesaredisclosedwhenthereisapossibleobligationarisingfrompastevents,theexistenceofwhichwillbeconfirmedonlybytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontroloftheGrouporapresentobligationthatarisesfrompasteventswhereitiseithernotprobablethatanoutflowofresourceswillberequiredtosettleor a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements. Contingent assets are not recognised.
2.22 Share capital and Other EquityOrdinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissueofnewsharesareshowninequityasadeduction,netoftax,fromtheproceeds.Self-insurancereserveiscreated@0.12%p.a.onGrossBlockofProperty,PlantandEquipmentexceptassetscoveredunderinsuranceasattheendoftheyearbyappropriationofcurrentyearprofittomitigatefuturelossesfromun-insuredrisksandfortakingcareof contingencies in future by procurement of towers and other transmission line materials including strengthening of towers and equipmentofACsubstation.TheReservecreatedasaboveisshownas“SelfInsuranceReserve”under‘OtherEquity’.
2.23 Prior Period ItemsMaterial prior period errors are corrected retrospectively by restating the comparative amounts for prior period presented in which the erroroccurredoriftheerroroccurredbeforetheearliestperiodpresented,byrestatingtheopeningstatementoffinancialposition.
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2.24 Operating SegmentsTheBoard ofDirectors is theGroup’s ‘ChiefOperatingDecisionMaker’ or ‘CODM’within themeaningof IndAS108 ‘OperatingSegments’. CODM monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measuredconsistentlywithprofitorlossinthefinancialstatements.Theoperatingsegmentshavebeenidentifiedonthebasisofthenatureofproducts/services.- Segment revenue includes sales andother incomedirectly identifiablewith / allocable to the segment including inter-segmenttransactions.-Expensesthataredirectlyidentifiablewith/allocabletosegmentsareconsideredfordeterminingthesegmentresult.ExpenseswhichrelatetotheGroupasawholeandnotallocabletosegmentsareincludedunderun-allocableexpenditure.-IncomewhichrelatestotheGroupasawholeandnotallocabletosegmentsisincludedinun-allocableincome.-Segmentassetsand liabilities include thosedirectly identifiablewith the respectivesegments.Un-allocableassetsand liabilitiesrepresent the assets and liabilities that relate to the Group as a whole and not allocable to any segment.-Segmentcapitalexpenditureisthetotalcostincurredduringtheperiodtoacquireproperty,plantandequipment,andintangibleassets.
2.25 Earnings per ShareBasicearningspershareiscomputedusingthenetprofitorlossfortheyearattributabletotheshareholdersandweightedaveragenumber of shares outstanding during the year. Dilutedearningspershareiscomputedusingthenetprofitfortheyearattributabletotheshareholdersandweightedaveragenumberofequityandpotentialequitysharesoutstandingduringtheyear,exceptwheretheresultwouldbeanti-dilutive.Additionally,basicanddilutedearningspersharearecomputedusingtheearningsamountsexcludingthemovementsinRegulatoryDeferral Account Balances.
2.26 Cash Flow StatementCashflowstatementispreparedasperindirectmethodprescribedintheIndAS7‘StatementofCashFlows’
Note 3. Critical Estimates and JudgmentsThepreparationofconsolidatedfinancialstatementsrequirestheuseofaccountingestimateswhichmaysignificantlyvaryfromtheactualresults.Managementalsoneedstoexercisejudgmentwhileapplyingthegroup’saccountingpolicies.Thisnoteprovidesanoverviewoftheareasthatinvolvedahigherdegreeofjudgmentorcomplexity,andofitemswhicharemorelikelytobemateriallyadjustedduetoestimatesandassumptionsturningouttobedifferentthanthoseoriginallyassessed.The areas involving critical estimates or judgments are: Revenue Recognition: TransmissionincomeisaccountedforbasedontariffordersnotifiedbytheCERC.Incaseoftransmissionprojectswherefinaltariffordersareyettobenotified,transmissionincomeisaccountedforaspertariffregulationsandotherordersoftheCERCinsimilarcases.Differences,ifany,areaccountedonissuanceoffinaltariffordersbytheCERC.TransmissionincomeinrespectofadditionalcapitalexpenditureincurredafterthedateofcommercialoperationisaccountedforbasedonexpenditureincurredonyeartoyearbasisasperCERCtariffregulations. Regulatory Deferral Balances: RecognitionofRegulatoryDeferralBalancesinvolvessignificantjudgmentsincludingaboutfuturetariffregulationssincethesearebasedonestimationoftheamountsexpectedtoberecoverable/payablethroughtariffinfuture. Estimation of defined benefit obligationEstimationofdefinedbenefitobligationinvolvescertainsignificantactuarialassumptionswhicharelistedinNote68.Estimatesandjudgmentsareperiodicallyevaluated.Theyarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatmayhaveafinancialimpactontheGroupandthatarebelievedtobereasonableunderthecircumstances. Useful life of property, plant and equipmentTheestimatedusefullifeofproperty,plantandequipmentisbasedonanumberoffactorsincludingtheeffectsofobsolescence,demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the levelofmaintenanceexpendituresrequiredtoobtaintheexpectedfuturecashflowsfromtheasset.TheGroupreviewesattheendofeachreportingdatetheusefullifeofplantandequipment,otherthantheassetsoftransmissionbusiness which are governed by CERC Regulations, and are adjusted prospectively, if appropriate.Provisions and contingencies TheassessmentsundertakeninrecognizingprovisionsandcontingencieshavebeenmadeinaccordancewithIndAS37-‘Provisions,ContingentLiabilitiesandContingentAssets’.Theevaluationofthelikelihoodofthecontingenteventshasrequiredbestjudgmentby management regarding the probability of exposure to potential loss. Should circumstances change following unforeseeabledevelopments, this likelihood could alter.
283
Not
e 4/
Prop
erty
, Pla
nt a
nd E
quip
men
t(`
in C
rore
)Pa
rtic
ular
sCo
stAc
cum
ulat
ed d
epre
ciat
ion
Net
Boo
k Va
lue
As a
t 1st
Apri
l, 20
18Ad
ditio
ns
duri
ng
the
year
Dis
posa
lAd
just
men
t du
ring
the
year
As a
t 31st
M
arch
, 20
19
As a
t 1st
Apri
l, 20
18
Addi
tions
du
ring
the
year
Dis
posa
lAd
just
men
t du
ring
the
year
As a
t 31st
M
arch
, 20
19
As a
t 31st
M
arch
, 20
19
As a
t 31st
M
arch
, 20
18
Land a)
Fre
ehol
d2,
220.
25
110
.53
--
2,33
0.78
-
--
- -
2,33
0.78
2,
220.
25
b) L
ease
hold
319
.39
171.89
--
491
.28
31.
25
11.
99
--
43.
24
448
.04
288.14
Build
ings
a)Sub-Stations&
Office
1,29
6.39
2
21.9
0 -
(10.
17)
1,52
8.46
103.81
54.
27
- (0
.06)
1
58.1
4 1,
370.
32
1,192.58
b) T
owns
hip
514
.94
72.
19
- (0
.67)
5
87.8
0 6
3.75
2
3.91
-
(0.0
1)
87.
67
500
.13
451
.19
Tem
pora
ry E
rect
ion
0.9
5 0
.07
--
1.0
2 0
.94
0.0
1 -
- 0
.95
0.0
7 0
.01
Roads&Bridges
163
.90
8.76
- (0
.01)
1
72.6
7 2
1.99
7
.16
--
29.
15
143
.52
141
.91
WaterSupplyDrainage
&Sewerage
97.
42
1.5
0 -
(0.3
6)
99.
28
12.87
4.3
5 -
- 1
7.22
8
2.06
84.55
Plan
t & E
quip
men
t
a) T
rans
miss
ion
112,
334.
62
16,
745.
63
45.
99
(879.66)
129,
913.
92
15,
022.
65
6,7
33.7
2 17.83
(4.9
3)
21,7
43.4
7 10
8,17
0.45
9
7,31
1.97
b)Sub-station
58,527.96
7,994.58
66.
25
(368.65)
66,
824.
94
7,548.71
3,6
37.1
9 33.88
(0.9
4)
11,
152.
96
55,
671.
98
50,
979.
25
c)UnifiedLoad
Despatch&
Com
mun
icatio
n
760
.00
209
.54
- 1
2.57
9
56.9
7 1
50.3
5 5
6.63
-
2.28
204
.70
752
.27
609
.65
d) T
elec
om1,
057.
15
43.
20
- (1
7.57
) 1,
117.
92
289.87
102
.63
-(8.57)
401
.07
716
.85
767.28
FurnitureFixtures
110
.09
21.
79
0.2
5 0
.07
131
.56
20.
55
8.60
0.0
6 0
.02
29.
07
102
.49
89.54
Vehi
cles
3.3
3 0.28
0.7
1 -
2.9
0 1
.11
0.3
2 0
.16
(0.0
5)
1.3
2 1
.58
2.2
2
Officeequipment
190
.26
18.86
0.3
7 (2
.26)
2
11.0
1 27.18
13.
43
0.1
3 (0
.57)
4
1.05
1
69.9
6 163.08
Elec
troni
c Da
ta
Processing&Word
Proc
essin
g M
achi
nes
91.
53
20.
73
1.6
6 (0
.17)
1
10.7
7 5
6.29
2
1.10
1
.59
(0.08)
75.
88
34.
89
35.
24
Cons
truct
ion
and
Workshopequipment
286.33
13.
07
1.2
5 (0
.02)
2
98.1
7 4
2.32
17.58
0.6
4 (0
.37)
5
9.63
2
38.5
4 2
44.0
1
Elec
trica
l Ins
talla
tion
93.
06
13.
24
--
106
.30
17.
59
5.85
--
23.
44
82.
86
75.
47
LaboratoryEquipments
45.
46
2.4
4 0
.40
- 4
7.50
9
.53
3.0
2 0
.03
- 1
2.52
3
4.98
3
5.93
Workshop&Testing
Equipments
155
.77
79.
56
0.1
4 1.68
233
.51
14.
95
10.78
0.0
3 -
25.
70
207
.81
140.82
MiscellaneousAssets/
Equipments
0.0
4 0
.12
-(0
.01)
0
.17
0.0
1 0
.01
--
0.0
2 0
.15
0.0
3
Tot
al17
8,26
8.84
25,
749.
88
117
.02
(1,2
65.2
3)20
5,16
6.93
23
,435
.72
10,
712.
55
54.
35
(13.
28)
34,1
07.2
0 17
1,05
9.73
15
4,83
3.12
Less
: Pro
visio
n fo
r as
sets
disc
arde
d 1
.74
--
- 1
.74
--
- -
1.7
4 1
.74
Gra
nd T
otal
178,
267.
10 2
5,74
9.88
1
17.0
2 (1
,265
.23)
205,
165.
19
23,4
35.7
2 1
0,71
2.55
5
4.35
(1
3.28
)34
,107
.20
171,
057.
99
154,
831.
38
Consolidated Financial Statements
284
(` in
Cro
re)
Not
e 4/
Prop
erty
, Pla
nt a
nd E
quip
men
t (Co
ntd.
)
Part
icul
ars
Cost
Accu
mul
ated
dep
reci
atio
nN
et B
ook
Valu
e
As a
t 1st
Apri
l, 20
17Ad
ditio
ns
duri
ng
the
year
Dis
posa
lAd
just
men
t du
ring
the
year
As a
t 31st
M
arch
, 20
18
As a
t 1st
Apri
l, 20
17
Addi
tions
du
ring
the
year
Dis
posa
lAd
just
men
t du
ring
the
year
As a
t 31st
M
arch
, 20
18
As a
t 31st
M
arch
, 20
18
As a
t 31st
M
arch
, 201
7
Land a)
Fre
ehol
d 2
,091
.04
136
.91
- 7
.70
2,2
20.2
5 -
--
--
2,2
20.2
5 2
,091
.04
b) L
ease
hold
250
.05
60.
27
-(9
.07)
319
.39
19.
13
11.
02
-(1
.10)
31.
25
288.14
230
.92
Build
ings
a)Sub-Stations&
Office
869.91
434
.32
-7.84
1,2
96.3
9 57.98
46.
01
-0.18
103.81
1,192.58
811.93
b) T
owns
hip
441
.96
72.98
--
514
.94
41.
91
21.84
--
63.
75
451
.19
400
.05
Tem
pora
ry E
rect
ion
0.84
0.1
1 -
- 0
.95
0.83
0.1
0 -
(0.0
1) 0
.94
0.0
1 0
.01
Roads&Bridges
154
.50
9.4
0 -
- 1
63.9
0 1
5.12
6.87
--
21.
99
141
.91
139.38
WaterSupplyDrainage&
Sew
erag
e 9
2.91
4
.51
--
97.
42
8.65
4.2
2 -
-12.87
84.55
84.26
Plan
t & E
quip
men
t
a) T
rans
miss
ion
98,360.95
14,
211.
67
124
.10
113
.90
112
,334
.62
9,1
01.3
9 5
,953
.73
55.
27
(22.80)
15,
022.
65
97,
311.
97
89,259.56
b)Sub-station
45,
964.
55
12,
506.
02
54.
25
(111
.64)
58,527.96
4,483.20
3,072.88
15.
19
(7.82)
7,548.71
50,
979.
25
41,481.35
c)UnifiedLoad
Despatch&
Com
mun
icatio
n
605
.43
137
.97
-(1
6.60
) 7
60.0
0 9
0.21
5
2.26
-
(7.88)
150
.35
609
.65
515
.22
d) T
elec
om918.87
153
.39
- 1
5.11
1
,057
.15
193
.00
104
.60
- 7
.73
289.87
767.28
725.87
FurnitureFixtures
98.31
12.
27
0.4
4 0
.05
110
.09
12.
54
8.11
0.2
7 (0
.17)
20.
55
89.54
85.77
Vehi
cles
2.7
4 0
.59
--
3.3
3 0
.66
0.4
5 -
- 1
.11
2.2
2 2.08
Officeequipment
132
.64
96.
53
0.4
3 38.48
190
.26
15.
34
11.
60
0.2
5 (0
.49)
27.18
163.08
117
.30
Elec
troni
c Da
ta
Processing&Word
Proc
essin
g M
achi
nes
74.
33
17.
61
0.3
3 0.08
91.
53
36.
02
19.80
0.28
(0.7
5) 5
6.29
3
5.24
38.31
Cons
truct
ion
and
Workshopequipment
248.34
38.37
0.38
-286.33
26.
05
16.
50
0.2
3 -
42.
32
244
.01
222
.29
Elec
trica
l Ins
talla
tion
82.34
7.5
0 -
(3.2
2) 9
3.06
1
1.59
5.81
-(0
.19)
17.
59
75.
47
70.
75
LaboratoryEquipments
41.
74
3.83
0.1
1 -
45.
46
6.4
5 3.08
--
9.5
3 3
5.93
3
5.29
Workshop&Testing
Equipments
120
.31
35.
67
0.2
0 0
.01
155
.77
7.5
6 7
.54
0.1
7 (0
.02)
14.
95
140.82
112
.75
MiscellaneousAssets/
Equipments
0.0
5 -
0.0
1 -
0.0
4 -
0.0
1 -
- 0
.01
0.0
3 0
.05
Tota
l15
0,55
1.81
27,
939.
92
180
.25
42.
64
178,
268.
84 1
4,12
7.63
9
,346
.43
71.
66
(33.
32)
23,4
35.7
2 15
4,83
3.12
13
6,42
4.18
Less
: Pro
visio
n fo
r ass
ets
disc
arde
d 1
.74
--
- 1
.74
--
--
- 1
.74
1.7
4
Gra
nd T
otal
w15
0,55
0.07
27,
939.
92
180
.25
42.
64
178,
267.
10 1
4,12
7.63
9
,346
.43
71.
66
(33.
32)
23,4
35.7
2 15
4,83
1.38
13
6,42
2.44
285
Further Notes :
a) TheCompanyowns7471hectare(PreviousYear7371hectare)oflandamountingto₹2822.06Crore(PreviousYear₹2539.64Crore)whichhasbeenclassifiedintofreeholdland6355hectare(PreviousYear6303hectare)amountingto₹2330.78Crore(PreviousYear₹2220.25Crore)andleaseholdland1116hectare(PreviousYear1068hectare)amountingto₹491.28Crore(PreviousYear₹319.39Crore)basedonavailable documentation.
b) Freeholdlandacquiredbythecompanyincludes221.38hectare(PreviousYear301.75hectare)amountingto₹202.93Crore(PreviousYear ₹251.32 Crore) in respect of which conveyance deed in favour of the company is pending and 123.56 hectare (Previous Year 289.81hectare)amountingto₹63.44Crore(PreviousYear₹224.78Crore)inrespectoflandacquiredbythecompanyforwhichmutationin revenue records is pending.
c) i) The land classified as leasehold land held in the state of Jammu and Kashmir with area of 113.88 hectare (Previous Year 113.88hectare)amountingto₹83.90Crore(PreviousYear₹80.46Crore)isacquiredbystategovernmentasperproceduresunderStateLandAcquisitionAct.Asperprevailinglawthestategovernmentremainstheownerofthelandsoacquiredandcompanyisonlygivenpossessionforthespecificuse.
ii) The transmission system situated in the state of Jammu and Kashmir have been taken over by the company w.e.f. 1st April 1993 from National Hydroelectric Power Corporation of India Limited (NHPC) upon mutually agreed terms pending completion of legal formalities.
iii) Leaseholdlandincludesareaof2.65hectare(PreviousYear2.65hectare)amountingto₹13.97Crore(PreviousYear₹13.97Crore)inrespectoflandinChamba(HP)acquiredfromNHPCbythecompanyforwhichlegalformalitiesarepending.
iv) Leaseholdlandotherthanaboveincludes133.91hectare(PreviousYear164.19hectare)amountingto₹186.11Crore(PreviousYear₹69.53Crore)inrespectofwhichleaseagreements/legalformalitiesarepending.
d) Leaseholdlandincludesareaof42.66hectare(PreviousYear0.41hectare)amountingto₹47.07Crore(PreviousYear₹7.64Crore) inrespectoflandacquiredforofficecomplexandSubstationonperpetualleasebasisandhencenotamortised.
e) Townshipbuildingincludes₹2.95Crore(PreviousYear₹2.95Crore)for28flatsatMumbai,forwhichregistrationinfavourofthecompanyispending.Outoftheaboveflats,17flatsareoccupiedbyemployeesofM/SPowerSystemOperationCorporationLtd.
f) 5.63hectareofland(PreviousYear5.63hectare)havingvalueof₹0.04Crore(PreviousYear₹0.04Crore)hasbeentransferredtoNationalHigh Power Test Laboratory Pvt. Ltd. on right to use without granting ownership.
g) Refernote23forinformationonproperty,plantandequipment,pledgedassecuritybythecompany.
Note 4/Property, Plant and Equipment (Contd.)
Consolidated Financial Statements
286
Note 5/Capital work in progress(` in Crore)
(` in Crore)
Particulars As at 1st April, 2018
Additions during the year
Adjustments Capitalised during the year
As at 31st March, 2019
LandDevelopment of land 10.78 39.82 0.02 44.14 6.44
Buildingsa)Sub-Stations&Office 189.76 112.63 - 204.24 98.15 b) Township 97.00 89.70 - 69.51 117.19
Roads&Bridges 18.66 5.24 - 5.63 18.27 WaterSupplyDrainageandSewerage 3.22 0.32 - - 3.54 Plant & Equipments (including associated civil works)
a) Transmission 16,749.96 9,864.75 - 14,614.97 11,999.74 b)Sub-Station 7,688.19 9,871.38 (0.01) 7,348.74 10,210.84 c)UnifiedLoadDespatch&Communication 464.29 228.66 20.93 193.68 478.34 d) Telecom 46.90 52.18 - 23.76 75.32
Furniture&Fixtures - 0.57 - 0.57 - Otherofficeequipments 8.88 7.73 - 6.78 9.83 Electrical Installations 0.93 11.72 - 9.21 3.44 Construction Stores (Net of Provision) 8,721.55 3,586.84 908.26 0.19 11,399.93 Expenditure pending allocation -i)Survey,investigation,consultancy&supervision Charges
33.30 - 8.42 18.45 6.43
ii)DifferenceinExchangeonforeigncurrencyloans
187.89 (14.97) - 45.59 127.33
iii)Expenditureduringconstructionperiod(net)(Note 43)
3,384.85 2,141.48 3.68 2,686.71 2,835.94
37,606.16 25,998.05 941.30 25,272.17 37,390.73 Less: Provision for unserviceable Assets 2.26 - - - 2.26 Grand Total 37,603.90 25,998.05 941.30 25,272.17 37,388.47
Particulars As at 1st April, 2017
Additions during the year
Adjustments Capitalised during the year
As at 31st March, 2018
LandDevelopment of land 25.19 60.84 0.01 75.24 10.78
Buildingsa)Sub-Stations&Office 394.86 157.30 - 362.40 189.76b) Township 67.59 64.83 - 35.42 97.00
Roads&Bridges 20.46 7.60 - 9.40 18.66WaterSupplyDrainageandSewerage 3.06 0.16 - - 3.22 Plant & Equipments (including associated civil works)
a) Transmission 16,608.47 13,109.54 0.73 12,967.32 16,749.96 b)Sub-Station 8,278.04 10,517.25 0.37 11,106.73 7,688.19c)UnifiedLoadDespatch&Communication 375.00 233.37 6.11 137.97 464.29 d) Telecom 66.99 69.86 - 89.95 46.90
Otherofficeequipments 6.49 4.25 - 1.86 8.88Electrical Installations 0.55 1.77 - 1.39 0.93 Construction Stores (Net of Provision) 8,589.34 695.45 563.24 - 8,721.55Expenditure pending allocationi)Survey,investigation,consultancy&supervision Charges
23.53 14.40 - 4.63 33.30
ii)DifferenceinExchangeonforeigncurrencyloans
69.49 170.00 - 51.60 187.89
iii)Expenditureduringconstructionperiod(net) (Note 43)
3,661.58 2,662.40 131.38 2,807.75 3,384.85
38,190.64 27,769.02 701.84 27,651.66 37,606.16 Less: Provision for unserviceable Assets 3.64 - 1.38 - 2.26 Grand Total 38,187.00 27,769.02 700.46 27,651.66 37,603.90
287
Note 5/Capital work in progress (Contd.)(` in Crore)
Particulars As at 31st March, 2019 As at 31st March, 2018Construction StoresTowers 1,581.26 1781.73Conductors 2,793.60 2999.57Other Line Materials 571.39 655.26Sub-StationEquipments 2,503.63 2015.15HighVoltageDirectCurrent(HVDC)Equipments 3,473.09 704.51UnifiedLoadDespatch&Communication(ULDC)Materials 222.94 401.21Telecom Materials 87.55 37.54Others 166.47 126.58
11399.93 8721.55Less: Provision for shortages and obsolete material - -Total 11399.93 8721.55Construction Stores include:i)Material in transitTowers 0.35 3.84Other Line Materials 18.18 12.48Sub-StationEquipments 183.99 158.41HighVoltageDirectCurrent(HVDC)Equipments 723.53 45.22 Others 2.22 2.35 Total 928.27 222.30ii) Material with ContractorsTowers 1580.91 1775.76Conductors 2793.60 2999.46Other Line Materials 553.21 642.45Sub-StationEquipments 2319.64 1856.73HighVoltageDirectCurrent(HVDC)Equipments 2749.56 659.29UnifiedLoadDespatch&Communication(ULDC)Materials 222.94 401.22Telecom Materials 87.55 37.54Others 164.25 124.24Total 10471.66 8496.69Grand total 11399.93 8718.99
Further Notes: Materials with Contractors amounting to 342.68crore(PreviousYear 488.14crore)inrespectofcommissionedlinesispendingforreconciliation.However reconciliation are carried out on ongoing basis.
(Details of Construction stores) (At Cost)
Consolidated Financial Statements
288
Not
e 6/
Inve
stm
ent P
rope
rty
(` in
Cro
re)
( ` in
Cro
re)
Part
icul
ars
Cost
Accu
mul
ated
Am
ortis
atio
nN
et B
ook
Valu
eAs
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nd (F
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0.0
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ings
0.0
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, 20
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year
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t du
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, 20
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, 20
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, 20
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--
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289
For the year ended 31st March, 2019
For the year ended 31stMarch,2018
Rental income - 0.80Directoperatingexpensesfrompropertythatgeneratedrentalincome - -Directoperatingexpensesfrompropertythatdidnotgeneraterentalincome - -Profitfrominvestmentpropertybeforedepreciation - 0.80Depreciation - -Profit from investment property - 0.80
(` in Crore)
(` in Crore)
(` in Crore)
(` in Crore)
Note 6/Investment Property (Contd.) (i) Amount recognised in profit and loss for investment property
(ii) Contractual obligations
(iii) Leasing arrangements
Minimumleasepaymentsreceivableundernon-cancellableoperatingleasesofinvestmentpropertyareasfollows:-
* Lease agreement ended with mutual consent during the year w.e.f 15thMarch2018andnonewleaseagreementhasbeenentered.
(iv) Fair value
Estimation of fair value
The fair values of investment property has been determined by independent valuer. The main inputs used are the rental growth rates, expectedvacancyrates,terminalyieldsanddiscountratesbasedoncomparabletransactionsandindustrydata.Allresultingfairvalueestimates for investment property are included in level 2.
31st March, 2019 31stMarch,2018Contractual obligation for future repairs and maintenance not recognised as a liability NIL 0.80
31st March, 2019 31stMarch,2018*Withinoneyear - -Later than one year but not later than 5 years - -Later than 5 years - -
31st March, 2019 31stMarch,2018Investment property 2.83 2.98
Consolidated Financial Statements
290
Not
e 7/
Oth
er I
ntan
gibl
e as
sets
*Int
erna
lly g
ener
ated
inta
ngib
le a
sset
(` in
Cro
re)
Part
icul
ars
Cost
Accu
mul
ated
Am
ortis
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nN
et B
ook
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at 1
st
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l, 20
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ns
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year
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, 20
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tions
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year
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, 20
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, 20
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t 31st
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, 20
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ectro
nic
Data
Pr
oces
sing
Softw
are
46.98
7.7
7 -
(0.1
2) 5
4.87
4
2.17
4.81
-(0
.12)
47.
10
7.7
7 4.81
RightofW
ay-
Afforestation
Expenses
1,5
03.2
2 3
65.0
2 -
(51.
61)
1,9
19.8
5 2
00.4
0 9
9.76
-
- 3
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6 1
,619
.69
1,302.82
Tele
com
Lice
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.80
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5
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.57
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.08
- (5
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,049
.38
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.71
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,366
.86
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00
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ay-
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1,2
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1,5
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2 118.44
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200
.40
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com
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2.5
0 2.80
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7 0
.13
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,366
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9
291
Particulars As at 1st April, 2018
Additions Adjustments Capitalised during the year
As at 31st March, 2019
Electronic Data Processing Software - 4.47 - 4.47 -RightofWay-Afforestationexpenses 64.67 357.49 - 179.57 242.59 Development of 1200 KV TS - 5.68 3.39 2.29 -Total 64.67 367.64 3.39 186.33 242.59
Note 8/Intangible assets under development(` in Crore)
(` in Crore)
Particulars As at 1st April, 2017
Additions Adjustments Capitalised during the year
As at 31st March, 2018
Electronic Data Processing Software 0.07 1.77 - 1.84 -RightofWay-Afforestationexpenses 61.39 90.70 - 87.42 64.67 Development of 1200 KV TS 15.88 - 15.88 - -Total 77.34 92.47 15.88 89.26 64.67
Consolidated Financial Statements
292
Note 9A/Investments in Joint Ventures accounted for using the equity method(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
Investments in Equity Instruments (fully paid up)UnquotedJoint Venture Companies
Torrent Power Grid Limited23400000(PreviousYear23400000)EquitySharesof`10/-each. 35.56 34.00Jaypee Powergrid Limited78000000(PreviousYear78000000)EquitySharesof`10/-each. 105.45 103.64Parbati Koldam Transmission Company Limited70937620(PreviousYear70937620)EquitySharesof`10/-each. 95.30 96.32Teestavalley Power Transmission Limited105560000(PreviousYear94277820)EquitySharesof`10/-each. 101.47 93.82Powerlinks Transmission Limited229320000(PreviousYear229320000)EquitySharesof`10/-each. 447.58 422.86North East Transmission Company Limited106964000(PreviousYear106964000)EquitySharesof`10/-each. 125.71 115.10National High Power Test Laboratory Private Limited30400000(PreviousYear30400000)EquitySharesof`10/-each. 26.08 27.83Cross Border Power Transmission Company Limited12612473(PreviousYear12612473)EquitySharesof`10/-each. 23.03 20.57Kalinga Bidyut Prasaran Nigam Private Limited5000(PreviousYear5000)EquitySharesof`10/-each.(Referfurthernote3below) - 0.01Less: Provision for diminution in the value of Investment - 0.01
- -Bihar Grid Company Limited171685600(PreviousYear156240000)EquitySharesof`10/-each. 195.94 168.16Power Transmission Company Nepal Limited1170000(PreviousYear1040000)EquitySharesofNepali`100/-each. 10.46 9.50RINLPOWERGRIDTLTPrivateLimited4000000(PreviousYear3400000)EquitySharesof`10/-each.(Referfurthernote4below) 3.97 3.39Less: Provision for diminution in the value of Investment 3.97 -
- 3.39 TOTAL 1166.58 1095.19
Further notes: 1)229319997EquityShares(PreviousYear229319997EquityShares)ofPowerlinksTransmissionLimitedheldbytheCompanyhavebeenpledgedassecuritywithconsortiumoffinancialinstitutionsagainstfinancialassistanceobtainedbyPowerlinksTransmissionLimited.
2)Investmentshavebeenvaluedasperaccountingpolicyno.2.2&2.14. 3)POWERGRID’sBoardofDirectorsinitsmeetingheldon16thAugust,2017accordedapprovalforinitiatingprocedureforwindingup/removalofthenameofKalingaBidyutPrasaranNigamPrivateLtdunderfasttrackExitmodeofRegistrarofCompanies(ROC).Provisionfordiminutionin the value of Investment of `0.01 crore had been made in the previous year.
4)POWERGRID’sBoardofDirectorsinitsmeetingheldon1stMay,2018accordedinprincipleapprovalforwindingupofRINLPowergridTLTPrivate Limited and to seek consent of other JV Partner Rashtriya Ispat Nigam Limited. Accordingly Provision for diminution in value of investment has been made.
293
Particulars As at 31st March, 2019
As at 31st March, 2018
Loans to Related Parties **LoanstoJVs-Unsecured 6.00 -LoantoDirectors&KeyManagerialPersonnel(KMP)Secured# 0.01 -Unsecured 0.09 0.07
6.10 0.07Loans to Employees (including interest accrued)Secured# 143.15 111.02 Unsecured 38.88 28.90
182.03 139.92Total 188.13 139.99
Note 9/Investments
Note 10/Loans (considered good unless otherwise stated)
Note 11/Other Non-current Financial Assets
(` in Crore)
(` in Crore)
(` in Crore)
(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
Investments in Equity Instruments (fully paid up)Investments at Fair Value through Other Comprehensive Income (OCI)
QuotedPTC India Limited12000006(PreviousYear12000006)EquitySharesof₹10/-each 88.14 104.88UnquotedEnergyEfficiencyServicesLimited37704350(PreviousYear22500000)EquitySharesof₹10/-each 41.70 23.90iii) OthersNIL(PreviousYear500)EquitySharesof₹10/-eachinEmployeesCo-opSocietyLimitedRourkela(PreviousYear₹5000/-)1(PreviousYear1)shareof₹10/-eachinBharatBroadbandNetworkLimited(₹10/-) TOTAL 129.84 128.78Further notes:1)a)AggregateamountofQuotedInvestments At Cost 12.00 12.00 Market Value 88.14 104.88b)AggregateamountofUnquotedInvestments 41.70 23.902)Investmentshavebeenvaluedasperaccountingpolicyno.2.2&2.14.
Particulars As at 31st March, 2019
As at 31st March, 2018
Lease receivables 589.82 602.88UnbilledRevenue$i) Considered good 307.33 77.62ii) Considered doubtful 105.71 -
413.04 77.62Less: Provision 105.71 -
307.33 77.62Bankdepositswithmorethan12monthsmaturity# 163.47 185.85RecoverableforGOIfullyservicedbonds## 3487.75 -TOTAL 4548.37 866.35
Further notes: ** Details of loans to related parties is provided in Note 60. #HousebuildingloansandconveyanceadvancetoDirectors,KMPandEmployeesaresecuredagainstthemortgageofthehousepropertiesorhypothecation of vehicles for which such loans have been given in line with the policies of the Company.
(Unsecuredconsideredgoodunlessotherwisestated)
Consolidated Financial Statements
294
Particulars As at 31st March, 2019
As at 31st March, 2018
(For mode of valuation refer Note 2.10)Components,Spares&otherspareparts 1237.40 1057.90Loose tools 20.06 21.61Consumable stores 12.50 8.15
1269.96 1087.66LessProvisionforShortages/damagesetc 22.71 38.31TOTAL 1247.25 1049.35
Inventories includes material in transitComponents,Spares&otherspareparts 10.34 3.75
Particulars As at 31st March, 2019
As at 31st March, 2018
Advances for Capital ExpenditureUnsecured
a. Against bank guarantees 1160.62 2726.25b. Others 35.05 36.96
Unsecuredconsidereddoubtful 1.25 1.671196.92 2764.88
Less:Provisionforbad&doubtfulAdvances 1.25 1.671195.67 2763.21
Advances other than for Capital ExpenditureSecurity Deposits 15.14 8.92Advances to Related Parties* - 0.43Deferred Employee Cost 52.66 50.59Deferred Foreign currency Fluctuation Asset 3675.22 2734.16Advances recoverable in kind or for value to be received
Employees 6.76 -Balance with Customs Port Trust and other authorities 27.56 23.16AdvancetaxandTaxdeductedatsource# 81.07 7.18Others** 154.75 160.03
270.14 190.37Considered doubtful 2.90 2.90
273.04 193.27Less: Provision for doubtful Advances 2.90 2.90
270.14 190.37TOTAL 5208.83 5747.68
Further notes: $ReferNote47fordisclosureasperIndAS115‘RevenuefromContractswithCustomers’. #Bankdepositsagainstdesignatedaccountsforconsultancywork. ##TheCompanyissued‘GoIfullyservicedbonds’foranamountof₹3487.50croreforraisingofExtraBudgetaryResources(EBR)forGoIschemeofPowerSystemDevelopmentFund(PSDF)intermsofletterNo:7/1/2018-OMdated21st January, 2019 of Ministry of Power, Govt. of India (GoI) for meeting accrued liabilities for creation of Capital Assets. The repayment of principal and the interest payment on such bonds shall bemetbyGoI.Outoftheproceedsofbondissue,anamountof₹3424.63CrorehasbeenrecognisedasGrantinaidandbalanceof₹62.87crore pending utilization has been shown in Note No 15.
Note 12/Other non-current Assets
Note 13/Inventories
(` in Crore)
(` in Crore)
(Unsecuredconsideredgoodunlessotherwisestated)
Further notes: *Details of advances to related parties are provided in Note 60. **OthersincludeamountrecoverablefromCustomers&StateGovernments,insuranceclaimsetc. #NetofCurrentTaxLiabilities-Note33.
Note 11/Other Non-current Financial Assets (Contd.)
295
Note 14/Trade receivables
Note 15/Cash and Cash Equivalents
Note 16/ Bank Balances other than Cash & cash equivalents
Note 17/Loans
(` in Crore)
(` in Crore)
(` in Crore)
(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
Trade receivables - Unsecured Considered good 4698.97 3626.13Considered Doubtful 339.32 48.15
5038.29 3674.28Receivablefromrelatedparties-Unsecured*
Considered good 29.17 13.895067.46 3688.17
Less: Provision for doubtful trade receivables 339.36 48.15TOTAL 4728.10 3640.02
Particulars As at 31st March, 2019
As at 31st March, 2018
Balance with banks--InCurrentaccounts 146.91 137.58-IndesignatedCurrentaccounts(ForConsultancyclientsandothers) 205.61 360.19
In term deposits (with maturity less than 3 months)* 3265.40 1013.73Drafts/Chequesinhand/Remittancesintransit 29.80 23.30Others (Stamps and Imprest) 0.01 -Total 3647.73 1534.80
Particulars As at 31st March, 2019
As at 31st March, 2018
Earmarked balance with banks* 20.18 12.61In Term Deposits having maturity over 3 months but upto 12 months (For Consultancy clients and others)
668.74 641.61
Total 688.92 654.22
Particulars As at 31st March, 2019
As at 31st March, 2018
Loans to Related Parties**LoanstoJointVenture-Unsecured 77.12 6.00 LoantoDirectors&KeyManagerialPersonnel(KMP)Secured# - -UnsecuredConsideredgood 0.08 0.04
77.20 6.04 Loans to Employees (including interest accrued)Secured# 23.60 21.63 UnsecuredConsideredgood 30.19 19.21
53.79 40.84TOTAL 130.99 46.88
Further notes: *Details of trade receivables from related parties are provided in Note 60. Refer Note 47 for disclosure as per Ind AS 115 ‘Revenue from Contracts with Customers’.
Further notes: *Termdepositincludes₹3265.40crore(PreviousYear₹1013.73crore)forConsultancyclientsandothers.
Further notes: *Earmarked balance with Bank includes unpaid dividend and refund of FPO proceeds
Further notes: ** Details of loans to related parties is provided in Note No 60. #HousebuildingloansandconveyanceadvancetoDirectors,KMPandEmployeesaresecuredagainstthemortgageofthehousepropertiesorhypothecation of vehicles for which such loans have been given in line with the policies of the Company.
Consolidated Financial Statements
296
Note 18/Other Current Financial Assets
Note 19/Other Current Assets
(` in Crore)
(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
Lease Receivables 46.33 43.48UnbilledRevenue* 6307.82 4064.42Less:ProvisionforUnbilledrevenue 18.92 18.92
6288.90 4045.50Interest accrued but not due
Interest accrued on Investments (Bonds) - 0.42InterestaccruedonTerm/FixedDeposits 2.62 2.23Interest accrued on Loan to JVs 1.62 0.01Interest accrued on Others ** 38.57 4.05
42.81 6.71AdvancestoRelatedParties# 33.83 5.64Others##
Considered Good 469.17 635.90Total 6881.04 4737.23
Particulars As at 31st March, 2019
As at 31st March, 2018
Advances other than for Capital ExpenditureAdvances recoverable in kind or for value to be receivedContractors&Suppliers 14.22 153.94 Employees 15.18 6.20 Balance with Customs Port Trust and other authorities 125.77 221.19 Claims recoverable 0.54 0.54
155.71 381.87Advances to related parties #
Joint Ventures - 0.77 Others*
Considered Good 182.15 121.86Considered Doubtful 0.01 0.03
182.16 121.89Less:Provision for Doubtful Advances 0.01 0.03
182.15 121.86Total 337.86 504.50
(Unsecuredconsideredgoodunlessotherwisestated)
(Unsecuredconsideredgoodunlessotherwisestated)
Further notes: * UnbilledrevenueincludestransmissionchargesforthemonthofMarchinthefinancialyearamountingto₹2580.58crore(PreviousYear
₹2277.02crore)billedtobeneficiariesinthemonthofAprilofsubsequentfinancialyear.Furtherrefernoteno47fordisclosureasperIndAS 115 ‘Revenue from Contracts with Customers’.
** Interest accrued on Others includes accrued interest on recoverable for GOI fully serviced bonds, advance to contractors. # DetailsofadvancestorelatedpartiesareprovidedinNote60. ## Othersinclude:- (a) anamountof₹30.85crorerecoverablefromM/sDelhiTranscoLimitedtowardstransferof1.167hectarelandatTughlaqabadSub-
station pending completion of legal formalities for tranfer of title. (b) amountrecoverablefromCustomers,AdvancerentforResidentialandOfficeaccommodation,AdvancetoPFTrustandGratuityTrust,
Other advance etc.
Further notes: #DetailsofadvancestorelatedpartiesareprovidedinNote60.*OthersincludeadvancegivenforCSRactivities,prepaidexpensesandinputtaxcredit-GST.
297
Particulars As at 31st March, 2019
As at 31st March, 2018
Reserves and SurplusSecurities Premium 9578.29 9578.29Bonds Redemption Reserve 9942.79 9187.58Self Insurance Reserve 893.37 737.60 Corporate Social Responsibility (CSR) Activity Reserve 114.54 123.33 General Reserve 31454.07 26988.99Retained Earnings 1797.05 2487.77
Other ReservesOther Comprehensive Income Reserve 76.69 90.84
Total 53856.80 49194.40
Note 20/Regulatory Deferral Account Balances
Note 21/Equity Share capital
Note 22/Other Equity
(` in Crore)
(` in Crore)
(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
AssetsDeferredassetsfordeferredtaxliability* 7516.5 10989.39Foreign Currency Fluctuation 432.61 200.34EmployeeBenefitsExpense 134.16 114.49
Total 8083.27 11304.22
Particulars As at 31st March, 2019
As at 31st March, 2018
Equity Share CapitalAuthorised 10,00,00,00,000(PreviousYear10,00,00,00,000)equitysharesof₹10/-eachatpar 10000.00 10000.00Issued, subscribed and paid up5,23,15,89,648(PreviousYear5,23,15,89,648)equitysharesof₹10/-eachatparfullypaidup 5231.59 5231.59
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
No. of Shares Amount (₹ in crore)
No.of Shares Amount (₹ in crore)
Shares outstanding at the beginning of the year 5231589648 5231.59 5231589648 5231.59Additions during the year - - - -Deduction during the year - - - -Shares outstanding at the end of the year 5231589648 5231.59 5231589648 5231.59
Particulars As at 31st March, 2019 As at 31st March, 2018No.of Shares % of holding No.of Shares % of holding
Government of India 2896495942 55.37 2977314759 56.91Life Insurance Corporation of India 335385684 6.41 254719223 4.87
Further Note: *Refertonoteno55forreclassificationofprioryearpresentation. Refer to note no 54 for detailed disclosure on Regulatory Deferral Account Balances.
Further Notes: 1) Reconciliation of number and amount of share capital outstanding at the beginning and at the end of the reporting period.
2)TheCompanyhasonlyoneclassofequityshareshavingaparvalueof₹10/-pershare. 3)Theholdersofequitysharesareentitled to receivedividendsasdeclared fromtime to timeand tovoting rightsproportionate to their
shareholding at meetings of the Shareholders.4)Shareholdersholdingmorethan5%equitysharesoftheCompany.
Consolidated Financial Statements
298
22.1 Securities Premium
22.2 Bonds Redemption Reserve
22.3 Self Insurance Reserve
22.4 Corporate Social Responsibility (CSR) Activity Reserve
22.5 General Reserve
(` in Crore)
(` in Crore)
(` in Crore)
(` in Crore)
(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
Balance at the beginning of the year 9578.29 9578.29Addition during the year - -Deduction during the year - -Balance at the end of the year 9578.29 9578.29
Particulars As at 31st March, 2019
As at 31st March, 2018
Balance at the beginning of the year 9187.58 8095.83Addition during the year 2058.20 2104.08Deduction during the year 1302.99 1012.33 Balance at the end of the year 9942.79 9187.58
Particulars As at 31st March, 2019
As at 31st March, 2018
Balance at the beginning of the year 737.60 677.79 Addition during the year 257.69 228.63Deduction during the year 101.92 168.82Balance at the end of the year 893.37 737.60
Particulars As at 31st March, 2019
As at 31st March, 2018
Balance at the beginning of the year 123.33 123.38Addition during the year - -Deduction during the year 8.79 0.05 Balance at the end of the year 114.54 123.33
Particulars As at 31st March, 2019
As at 31st March, 2018
Balance at the beginning of the year 26988.99 23312.01 Add/(Less):IndAS115Adjustments* 104.37 9.07
27093.36 23321.08Addition during the year 4360.71 3667.91 Deduction during the year - -Balance at the end of the year 31454.07 26988.99
Securitiespremiumisusedtorecordthepremiumonissueofshares/securities.ThisamountisutilisedinaccodancewiththeprovisionoftheCompanies Act, 2013.
Bonds Redemption Reserve is created for the purpose of redemption of debentures in term of the Companies Act, 2013.
Self-InsuranceReserveiscreated@0.12%p.a.(0.12%p.a.inpreviousyear)ontheGrossBlockofProperty,Plant&Equipmentsnotcoveredunderinsuranceasattheendoftheyeartomeetfuturelosseswhichmayarisefromun-insuredrisksandforprocurementoftowersandothertransmissionlinematerialsincludingstrengtheningoftowersandequipmentsofACsub-stationtotakecareoffuturecontingencies.
CorporateSocialResponsibilityReserveiscreatedtotheextentofshortfallintheactualexpenditureinanyyearvis-à-vistheamountstipulatedas per the Companies Act, 2013.
GeneralReserveisretainedearningsofthecompanywhicharekeptasideoutofcompany’sprofits.Itisafreereservewhichcanbeutilizedtomeet any unknown future contingencies and to pay dividends to shareholders.* Refer note no 47 for details.
Note 22/Other Equity (Contd.)
299
22.6 Retained Earnings
22.7 Other Comprehensive Income Reserve
Note 23/ Borrowings
(` in Crore)
(` in Crore)
(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
Balance at the beginning of the year 2487.77 2742.85Add: AdditionsNetProfitfortheperiod 10033.52 8204.00 Items of other comprehensive income recognised directly in surplus balance-Remeasurementsofpostemploymentbenefitobligations (2.19) 20.85 Transfer from Bond Redemption Reserve 1302.99 1012.33 Other Adjustments (3.78) 0.23
Less: Appropriations General Reserve 4,250.00 3,500.00 Bonds Redemption Reserve 2058.20 2,104.08 Self Insurance Reserve 257.69 228.63 Interim dividend paid 3050.02 1,281.74TaxonInterimdividend 627.58 259.87 Final Dividend (refer note 64(b)) 1464.85 1,752.59 TaxonFinalDividend 312.92 365.58
Balance at the end of the year 1797.05 2487.77
Particulars As at 31st March, 2019
As at 31st March, 2018
Balance at the beginning of the year 90.84 103.76 Addition during the year (14.15) (12.92)Balance at the end of the year 76.69 90.84
OtherComprehensiveIncomeReserveiscreatedfromincrease/decreaseinvaluationofNonCurrentInvestmentsinEquityinstrumentsclassifiedas fair valued through Other Comprehensive Income (FVOCI).
Description As at 31st March, 2019
As at 31st March, 2018
A) BONDSA1) Secured (Taxable, Redeemable, Non-Cumulative, Non-Convertible)
A1.1 i) Bondsof₹10LakheachLV Issue-7.55% Redeemable at par on 21.09.2031 1,238.92 1,238.91LX Issue-7.20% Redeemable at par on 09.08.2027 3,059.78 3,059.76 LIX Issue-7.30% Redeemable at par on 19.06.2027 3,069.78 3,069.76 XXXIX Issue-9.40% redeemable at par on 29.03.2027 1,799.86 1,799.86LVIII Issue-7.89% redeemable at par on 09.03.2027 2,059.44 2,059.41 XXXVIII Issue-9.25% redeemable at par on 09.03.2027 854.72 854.72LVI Issue-7.36% redeemable at par on 18.10.2026 1,064.10 1,064.08LXII Issue-8.36% Redeemable at par in 05(five) equal installments w.e.f. 07.01.2025
1,999.75 -
XLII Issue-8.80% redeemable at par on 13.03.2023 1,989.52 1,989.49LVII Issue-7.20% redeemable at par on 21.12.2021 2,118.79 2,118.75
ii) Bondsof₹30Lakheachconsistingof3STRPPsof₹10lakheach redeemable at par in 3 (Three) equal installments on15.07.2021, 15.07.2026 and 15.07.2031LIV Issue-7.97% Redeemable w.e.f 15.07.2021 2,997.93 2,997.89
iii) Bondsof₹30Lakheachconsistingof3STRPPsof₹10lakheach redeemable at par in 3 (Three) equal installments on23.12.2020,23.12.2025 and 23.12.2030LII Issue-8.32% redeemable w.e.f. 23.12.2020 1,396.95 1,396.94
iv) Bondsof₹1.20croreeachconsistingof12STRPPsof₹10lakheachredeemableatparin12(twelve)equalinstallmentsLIII Issue-8.13% Redeemable w.e.f 25.04.2020 3,995.76 3,995.46
Note 22/Other Equity (Contd.)
Consolidated Financial Statements
300
Description As at 31st March, 2019
As at 31st March, 2018
v) Bondsof₹30Lakheachconsistingof3STRPPsof₹10lakheach redeemable at par in 3 (Three) equal installments on09.03.2020,09.03.2025 and 09.03.2030XLIX Issue-8.15% redeemable w.e.f. 09.03.2020 869.63 1,304.60
vi) Bondsof₹0.10croreeach redeemableatparat theendof5th year2900 Bonds-8.90% redeemable on 10.06.2020 290.00 290.00
vii) Bondsof₹40Lakheachconsistingof4STRPPsof₹10lakheachredeemableatparin4(Four)equalinstallmentson23.01.2020,23.01.2022,23.01.2025 and 23.01.2030XLVIII Issue-8.20% redeemable w.e.f. 23.01.2020 1,933.70 2,578.64
viii) Bondsof₹1.20croreeachconsistingof12STRPPsof₹10lakheachredeemableatparin12(twelve)equalinstallmentsLI Issue-8.40% redeemable w.e.f. 14.09.2019 2,747.80 2,997.62
ix) Bondsof₹30Lakheachconsistingof3STRPPsof₹10lakheach redeemable at par in 3 (Three) equal installments on04.09.2019, 4.09.2024 and 04.09.2029XLVI Issue-9.30% redeemable w.e.f. 04.09.2019 2,903.53 4,357.52
x) Bonds of Rs 1.20 crore each consisting of 12 STRPPs of Rs 10 lakheachredeemableatparin12(twelve)equalinstallmentsL Issue-8.40% redeemable w.e.f. 27.05.2019 2,682.75 2,926.70
xi) Bondsof₹1.20croreeachconsistingof12STRPPsof₹10lakheachredeemableatparin12(Twelve)equalinstallmentsXLVII Issue-8.93% redeemable w.e.f 20.10.2018 2,197.98 2,417.64
xii) Bonds of ₹ 30 Lakh each redeemable at par in 3 equalinstalmentson15.07.2018,15.07.2023and15.07.2028XLIV Issue-8.70% redeemable w.e.f. 15.07.2018 2,641.89 2,640.88
xiii) Bondsof₹1.2crores each consistingof12STRPPsof₹10lakhs each redeemable at par in 12 (twelve) equal annualinstalmentsXLV Issue-9.65% redeemable w.e.f. 28.02.2018 1,499.14 1,665.55 XLIII Issue-7.93% redeemable w.e.f. 20.05.2017 2,343.46 2,603.84
xiv) Bondsof₹1.5croreseachconsistingof12STRPPsof₹12.50Lakhs each redeemable at par in 12 (twelve) equal annualinstalments.XLI Issue-8.85% redeemable w.e.f. 19.10.2016 1,892.95 2,129.59
xv) Bondsof₹1.50croreseach,consistingof15STRPPsof₹10.00Lakhs each redeemable at par in 15 (fifteen) equal annualinstalmentsXXXVI Issue- 9.35% redeemable w.e.f. 29.08.2016 2,263.49 2,469.27
xvi) Bondsof₹1.5croreseachconsistingof12STRPPsof₹12.50Lakhs each redeemable at par in 12 (twelve) equal annualinstalments.XL Issue-9.30% redeemable w.e.f. 28.06.2016 2,662.67 2,995.53 XXXVII Issue- 9.25% redeemable w.e.f 26.12.2015 1,162.66 1,328.77XXXV Issue- 9.64% redeemable w.e.f 31.05.2015 1,141.04 1,304.05 XXXIV Issue- 8.84% redeemable w.e.f 21.10.2014 1,741.84 2,032.19 XXXIII Issue- 8.64% redeemable w.e.f 08.07.2014 1,438.78 1,678.61XXXII Issue- 8.84% redeemable w.e.f 29.03.2014 431.21 517.45 XXXI Issue- 8.90% redeemable w.e.f 25.02.2014 852.77 1,023.33 XXX Issue- 8.80% redeemable w.e.f 29.09.2013 970.77 1,164.96 XXIX Issue- 9.20% redeemable w.e.f 12.03.2013 432.37 540.47 XXVIII Issue- 9.33% redeemable w.e.f 15.12.2012 799.13 998.95XXVII Issue- 9.47% redeemable w.e.f 31.03.2012 176.18 234.92 XXVI Issue- 9.30% redeemable w.e.f 07.03.2012 249.66 332.88XXV Issue- 10.10% redeemable w.e.f 12.06.2011 265.97 354.65 XXIV Issue- 9.95% redeemable w.e.f 26.03.2011 133.23 199.85XXIII Issue- 9.25% redeemable w.e.f 09.02.2011 51.21 76.82XXII Issue- 8.68% redeemable w.e.f 07.12.2010 114.86 172.32 XXI Issue- 8.73% redeemable w.e.f 11.10.2010 84.88 127.34
Note 23/ Borrowings (Contd.) (` in Crore)
301
Description As at 31st March, 2019
As at 31st March, 2018
XX Issue- 8.93% redeemable w.e.f 07.09.2010 249.65 374.53 XIX Issue- 9.25% redeemable w.e.f 24.07.2010 82.39 123.60 XVIII Issue- 8.15% redeemable w.e.f 09.03.2010 83.22 166.45
65036.11 69,774.55 A2) Unsecured
A2.1 Redeemable Domestic BondsBondsof₹50Lakhseachconsistingof05STRPPsof₹10.00Lakhseachredeemableatparin05(Five)equalannual instalments.
LXI Issue-7.74% redeemable w.e.f. 12.12.2028 2,999.77 2,999.75
A2.2 Redeemable Foreign Currency Bonds3.875%ForeignCurrencyBondstoberedeemedatpar on 17.01.2023
3,470.63 3,253.88
6,470.40 6,253.63 Total (A) 71506.51 76,028.18
B) Term loans from Banks
SecuredForeign Currency Loans (Guaranteed by Government of India (GOI)
24,891.44 21,294.39
Other Foreign Currency Loans 3,401.76 2,548.77Rupee Loans 12,184.00 13,638.00
40,477.20 37,481.16 Unsecured
Foreign Currency Loans (Guaranteed by GOI) 3,657.84 3,738.32Other Foreign Currency Loans 3,135.96 2,022.66 Rupee Loans 12,552.00 3,440.00
19,345.80 9,200.98
Total B 59,823.00 46,682.14TOTAL (A TO B) 131,329.51 122,710.32
Note 23/ Borrowings (Contd.) (` in Crore)
Further notes:
Details of terms of repayment and rate of interest
1 SecuredForeignCurrencyLoans(GuaranteedbyGoI)carryfloatingrateofinterestlinkedto6MLIBOR.Theseloansarerepayableinsemiannualinstallment,aspertermsoftherespectiveloanagreement,commencingaftermoratoriumperiodof3to5yearsexceptforoneloan₹342.93Crore(Previousyear₹199.69Crore)whichcarryfixedrateofinterestof0.25%p.a.
2 SecuredotherForeignCurrencyLoanscarryfloatingrateofinterestlinkedto6M(LIBOR/EURIBOR/STIBOR).Theseloansarerepayablein semi annual installment,as per terms of the respective loan agreements, commencing after moratorium period of 3 to 5 years.
3 SecuredRupeeloanfrombankscarryfloatingrateofinterestlinkedto3MMCLR.Theseloansarerepayableinsemiannualinstallments,as per terms of the respective loan agreements, commencing after moratorium period of 5 years.
4 UnsecuredForeignCurrencyLoans(GuaranteedbyGoI)carryfixedrateofinterestrangingfrom1.63%p.a.to2.30%p.a.Theseloansarerepayable in semi annual installments as per terms of the respective loan agreements.
5 UnsecuredForeignCurrencyLoanscarryfloatingrateofinterestlinkedto6MSTIBOR/EURIBOR/JPYLIBOR.Theseloansarerepayablein semi annual installments as per terms of the respective loan agreements, commencing after moratorium period as per terms of the respective loan agreements.
6 UnsecuredRupeeloansfrombankscarryfloatingrateofinterestlinkedto3monthsMCLR.Theseloansarerepayableinsemiannualinstallments, commencing after moratorium period as per terms of the respective loan agreements.
7 There has been no default in repayment of loans or payment of interest thereon as at the end of the year.
Consolidated Financial Statements
302
Note 24/Other Non-current financial liabilities
Note 25/ Provisions
Note 26/ Deferred tax liabilities (Net)
(` in Crore)
(` in Crore)
(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
Deposits/Retentionmoneyfromcontractorsandothers. 507.03 456.95Govt. of India fully serviced bonds * 3487.50DuesforCapitalExpenditure - 2.65Total 3994.53 459.60
Particulars As at 31st March, 2019
As at 31st March, 2018
Employee BenefitsAs per last balance sheet 716.87 789.56Additions/(adjustments)duringtheyear (348.72) (72.69)Closing Balance 368.15 716.87
Particulars As at 31st March, 2019
As at 31st March, 2018
A. Deferred Tax LiabilityDifferenceinbookdepreciationandtaxdepreciation 17606.33 14398.61Finance lease assets 83.23 88.37Others 37.60 48.27Share of undistributed dividends in Joint Ventures 69.79 58.82
Deferred Tax Liability (A) 17796.95 14594.07
B. Deferred Tax AssetsIncome during Construction Period 20.95 16.78Self Insurance Reserve - 8.11Provisions allowable on payment basis 481.93 215.92Advance Against Depreciation 462.47 525.59UnusedTaxLosses 668.65 221.16MAT Credit Entitlement 6043.80 30.15 Others 100.67 103.51
Deferred Tax Assets (B) 7778.47 1121.22Deferred Tax Liability (Net) (A-B) 10018.48 13472.85
Further Notes: DisclosurewithregardtoMicroandSmallenterprisesasrequiredunder“TheMicro,SmallandMediumEnterprisesDevelopmentAct,2006”isgiven in Note No 51. *GovtofIndiafullyservicedbondsissued@8.24%redeemableatparon14.02.2029.ReferNote11fordetails.
Further Notes: Provisioniscreatedforthepurposeof leaveencashment,SettlementAllowance,LongServiceAwardandotherbenefits.ReferNote68fordetaileddisclosurerelatedtoEmployeeBenefitObligations.
Note 23/ Borrowings (Contd.)Details of Securities 1 Domestic Bonds are Secured by way of Registered Bond Trust Deed ranking pari passu on immovable property situated at Mouje Ambheti
TalukaKaparadaindistrictValsadGujaratandfloatingchargeontheassetsofthecompany.2 Secured Foreign Currency Loans (Guaranteed by GoI) are secured by pari passu interest in the lien created on the assets as security for the
debts. 3 Secured Other Foreign Currency Loans and Rupee Loans are secured by the way of (i) paripassuchargeontheassetsofthecompanyexceptinvestments,landandbuilding,roadsandbridges,watersupply,drainageand
sewerage and current assets or (ii) paripassuchargeontheassetsofthecompanyexceptinvestmentsandcurrentassetsor (iii) floatingchargeontheimmovable properties of the company. as per the terms of respective loan agreements.
303
(` in Crore)
Further Notes:Movement in Deferred Tax Liabilities
Particulars Difference in book depreciation and tax depreciation
Finance Leased Assets
Others Undistributed Dividend in JVs
Total
At 1st April, 2017 11257.94 90.83 66.30 46.55 11461.62Charged/(credited)-toprofitorloss 3140.67 (2.46) (18.03) 12.27 3132.45At 31st March, 2018 14398.61 88.37 48.27 58.82 14594.07Charged/(credited)-toprofitorloss 3207.72 (5.14) (10.67) 10.97 3202.88At 31st March, 2019 17606.33 83.23 37.60 69.79 17796.95
(` in Crore)
(` in Crore)
a) Creditof₹3454.37crorehasbeenmadeintheStatementofProfit&Loss(PreviousyearchargedtoStatementofProfit&Loss₹3068.77crore).
b) Matterregardingpresentationof‘DeferredAssetsagainstDeferredTaxLiability’inBalanceSheetandStatementofProfitandlosswasreferred toExpertAdvisoryCommittee (EAC)of InstituteofCharteredAccountantsof India.Asperopinion receivedduring theyear‘DeferredAssetsagainstDeferredTaxLiabilitywhichwashithertonettedwithDeferredTaxLiability,isclassifiedas‘RegulatoryDeferralAccountBalance” inBalanceSheetandStatementProfitandLossAccount‘.Further refer tonoteno55 ‘ReclassificationofPriorYearPresentation’.
Movement in Deferred Tax Assets
Amount taken to Statement of Profit and Loss
Particulars Income during construction
Period
Self-insurance reserve
Provisions allowable on
payment basis
Advance against
depreciation
MAT Credit
Others Total
At 1st April, 2017 18.69 11.26 236.77 562.31 - 228.41 1057.44(Charged)/credited-toprofitorloss (1.91) (3.15) (20.85) (36.72) 30.15 96.26 63.78At 31st March, 2018 16.78 8.11 215.92 525.59 30.15 324.67 1121.22(Charged)/credited-toprofitorloss 4.17 (8.11) 266.01 (63.12) 6013.65 444.65 6657.25At 31st March, 2019 20.95 - 481.93 462.47 6043.80 769.32 7778.47
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
IncreaseinDeferredTaxLiabilities 3202.88 3132.45Decrease/(Increase)inDeferredTaxAssets (6657.25) (63.78)Add:AdjustmentofPYdeferredtaxLiability - 0.10Total (3454.37) 3068.77
c) Intheopinionofthemanagement,itisprobablethatfutureeconomicbenefitswillflowtothecompanyintheformofavailabilityofsetoffagainstfutureincometaxliabilitybyrecognizingMATcreditasfollows:
Future taxableprofitswillbeadjustedagainst (a) taxholidayu/s80-IAof IncomeTaxAct,1961 for theprojects commissionedupto 31stMarch,2017(b) initialdepreciationontheassetstobecommissioned infutureand(c)regular incometaxdepreciationu/s32ofIncomeTaxAct,1961andthereaftertaxamountwillbesetoffagainstMATcredittotheextentof`2003.24Cr(FY2016-17),` 2203.64 Cr (FY2017-18)and`1728.82Cr(FY2018-19).Hence,thesamehasbeenrecognisedasDeferredTaxAssetsduringtheyear.
Note 26/ Deferred tax liabilities (Net) (Contd.)
Consolidated Financial Statements
304
Note 28/Borrowings(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
Short Term - UnsecuredFrom OthersFrom Banks 1300.00 -Commercial Paper 3000.00 1000.00
Total 4300.00 1000.00
Further Notes: 1. CommercialPapers/shorttermloanareunsecuredinnature,withrateofinterestrangingform6.63%to8.20%andrepayablewithin30
days to 90 days from the date of drawal. 2. There has been no default in repayment of loans or payment of interest thereon as at the end of the year.
Note 27/Other non-current liabilities(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
Advancefromcustomers(Consultancy/Telecomservices)$ 359.04 328.84Others* 127.53 128.32Total 486.57 457.16
Further Notes: $ReferNote47fordisclosureasperIndAS115‘RevenuefromContractswithCustomers’. *Others includes amount payable to Customers upon recovery.
DeferredtaxassethasnotbeenrecognisedinrespectofthetaxlossesincurredbythecompanythatisnotlikelytogeneratetaxableincomeintheforeseeablefutureduetotheavailabilityofdeductionoftaxholidaytothecompanyundertheIncomeTaxAct,1961.*UndertheprovisionsoftheIncomeTaxAct,1961,unabsorbeddepreciationcanbecarriedforwardforanunlimitedperiod.
(` in Crore)
(` in Crore)
d) MAT credit available to the group in future but not recognised in the books:
e) Tax losses brought forward:
For the Financial Year As at 31st March 2019 Expiry Date As at 31st March 2018 Expiry Date2017-18 - 31st March 2033 2203.64 31st March 20332016-17 - 31st March 2027 2003.24 31st March 20272015-16 1421.20 31st March 2026 1421.20 31st March 20262014-15 1281.23 31st March 2025 1281.23 31st March 20252013-14 1085.14 31st March 2024 1085.14 31st March 20242012-13 1071.31 31st March 2023 1071.31 31st March 20232011-12 239.01 31st March 2022 239.01 31st March 20222010-11 9.36 31st March 2021 9.36 31st March 20212009-10 - 31st March 2020 - 31st March 20202008-09 277.91 31st March 2019 277.91 31st March 20192007-08 - 31stMarch2018 250.01 31stMarch2018
Particulars As at 31st March 2019 Expiry Date As at 31st March 2018 Expiry Date*Unused tax losses for whichno deferred tax asset has beenrecognised
- - 2761.43 -
Note 26/ Deferred tax liabilities (Net) (Contd.)
305
Note 29/Trade payables
Note 30/Other Current Financial Liabilities
(` in Crore)
(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
For goods and services(A) total outstanding dues of micro enterprises and small enterprises 33.27 2.33(B) total outstanding dues of creditors other than micro enterprises and small enterprises 331.86 238.11
Total 365.13 240.44
Particulars As at 31st March, 2019
As at 31st March, 2018
Current maturities of long term borrowingsSecuredBonds 6742.98 5211.89Rupee Term Loans 1454.00 454.00Foreign Currency Loans 2098.85 1849.71
10295.83 7515.60Un-securedForeign Currency Loans 451.02 277.04
10746.85 7792.64Interest accrued but not due on borrowings fromForeignBanks&FinancialInstitutions 251.70 144.90Secured/UnsecuredredeemableBonds## 3160.52 3323.48
3412.22 3468.38OthersDuesforcapitalexpenditure 2597.66 4618.88Employee related liabilities 158.03 170.31Unclaimeddividends&FPO* 13.37 12.61Deposits/Retentionmoneyfromcontractorsandothers. 4723.65 5355.24Related parties** 2.69 51.91Dividend Payable 6.81 -Others# 1698.40 1210.03
9200.61 11418.98Total 23359.68 22680.00
Further Notes: DisclosurewithregardtoMicroandSmallenterprisesasrequiredunder“DivisionIIofScheduleIIIofTheCompaniesAct,2013”and“TheMicro,Small and Medium Enterprises Development Act, 2006” is given in Note No 51.
Further notes: DisclosurewithregardtoMicroandSmallenterprisesasrequiredunder“TheMicro,SmallandMediumEnterprisesDevelopmentAct,2006”isgiven in Note No 51.* No amount is due for payment to Investor Education and Protection Fund. **Details of amount payable to related parties are provided in Note 60. #OthersincludeliabilityforpaymentagainstLongTermAccess(LTA),ShortTermOpenAccess(STOA),ISTSLicenserecovery,deadcheques,Price variation etc. ##includes₹36.22CroreinterestaccurredbutnotdueonGoIfullyservicedbonds.
Note 31/Other current liabilities(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
Advances from customers * 3500.58 2569.87Advancesfromcustomers-relatedparties# 80.42 -Statutory dues 307.98 148.68Total 3888.98 2718.55
Further notes: * Refer Note 47 for disclosure as per Ind AS 115 ‘Revenue from Contracts with Customers’. #DetailsofamountpayabletorelatedpartyareprovidedinNote60.
Consolidated Financial Statements
306
Particulars As at 31st March, 2019
As at 31st March, 2018
Taxation (Including interest on tax)As per last balance sheet 5809.21 4847.15Additions during the year 1873.49 2247.90 Amount adjusted during the year 1565.28 1285.84Total 6117.42 5809.21NetoffagainstAdvancetaxandTDS 6117.42 5401.95 Closing Balance - 407.26
Note 33/Current Tax Liabilities (Net)
Note 32/Provisions
(` in Crore)
(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
A) Employee Benefitsi) Performance related pay /special incentiveAs per last balance sheet 163.33 109.83Addition during the year 444.50 163.46 Amountpaid/adjustedduringtheyear 163.33 109.96 Closing Balance 444.50 163.33 ii) Wage revisionAs per last balance sheet 725.36 265.43 Additions/(adjustments)duringtheyear (725.36) 459.93 Closing Balance - 725.36 iii) Other Employee Benefits( Leave Encashment, Settlement Allowance and Long Service Award etc.)As per last balance sheet 66.52 73.86Additions/(adjustments)duringtheyear 1.59 (7.34)Closing Balance 68.11 66.52 Total (A) 512.61 955.21
B) Othersi) Downtime Service Credit-TelecomAs per last balance sheet 18.20 14.86Additions during the year 5.49 8.26Amounts adjusted during the year 5.74 4.92 Closing Balance 17.95 18.20ii) Provision Others As per last balance sheet 86.19 73.24 Additions/(adjustments)duringtheyear 84.39 12.95 Closing Balance 170.58 86.19Total (B) 188.53 104.39
Total (A+B) 701.14 1059.60 Further Notes: Employee BenefitsPerformanceRelatedPay/SpecialIncentiveProvisioniscreatedforPerformanceRelatedPaytoExecutivesandNon-ExecutivesWageRevisionPayrevisionofExecutivesandNonExecutiveswasimplementedduringtheFY2018-19andaccordinglyprovisionagainstwagerevisionwasutilised/adjustedduringtheyear.OtherEmployeeBenefitsProvisioniscreatedforthepurposeofmeetingoutleaveencashment,settlementallowance,longserviceawardandPOWERGRIDEmployeeFamily Rehabilitation Scheme.OthersDowntimeServiceCredit-TelecomProvisioniscreatedincasewhenactualdowntimeisinexcessofthepermissibleservicelevelagreement,insuchcasesthenecessarycreditis passed on to the customer on demand.However, in some case, the downtime is not claimed by the customer then in such cases necessary provision on account of downtime is made in thebooksofaccountsasperthelinksavailabilityreportsreceivedfromNationalTelecomControlCentre(NTCC)fortheperiodofnon-operationof links given to the customers. The calculation of downtime credit is based on the SLA signed with various customers.Provision Others: Itincludesprovisionforentrytax₹138.39crore(PreviousYear₹71.44crore)asperdemandraisedbyrevenueauthoritiesdisputedbythecompanyandareunderlitigation.Anamountof₹8.24crore(PreviousYearNil)hasbeenpaidundercourtorderandshownas“Balancewithcustom port trust and other authorities” in Note 19.
307
Note 34/Deferred Revenue
Note 35/Revenue from operations
(` in Crore)
(` in Crore)
Particulars As at 31st March, 2019
As at 31st March, 2018
Advance against depreciation 1323.45 1504.09 Grants in aid (Refer Further Notes)
As per last Balance Sheet 559.56 150.30 Addition during the year 3684.53 421.39 Adjustments during the year 70.77 12.13 Closing balance 4173.32 559.56
Deferredincomefromforeigncurrencyfluctuation(Net) 3960.26 2903.76 TOTAL 9457.03 4967.41
Particulars For the year ended 31st
March, 2019
For the year ended 31st
March, 2018Sales of servicesTransmission Business Transmission Charges 33485.68 28686.36 Add: Revenue recognised out of Advance Against Depreciation 180.64 120.72
33666.32 28807.08 Other Operating RevenueInterestondifferentialProvisionalandFinalTariff 145.87 25.36 Income from lease lines 11.31 11.17 Recognisedfromdeferredrevenue-Grantinaid 70.77 12.13
227.95 48.6633894.27 28855.74
Telecom Business 663.25 606.59
Consultancy Project Management and Supervision 501.60 491.29 Total 35059.12 29953.62
Further Notes: 1. GrantinAidof₹2889.00crore(PreviousYearNilcrore)wasreceivedfromPowerSystemDevelopmentFund(PSDF)towardsTransmission
system associated with ‘North East-Northern/Western Interconnector-I Project’ and ‘Transmission system for development of poolingstationinNorthernPartofWestBengalandtransferofpowerfromBhutantoNR/WR(BNC-AgraHVDC)’.
2. GrantinAidof₹667.78crore(PreviousYear₹141.15crore)wasreceivedfromPowerSystemDevelopmentFund(PSDF)forinstallationofSTATCOMinER(ERSS-XI)andSR(SystemStrengtheninginSR-XXI).InadditiontoGrantreceived,aninterestof₹1.24crore(PreviousYear₹0.12crore)creditedtotheGrant.
3. GrantinAidof₹17.85crore(PreviousYear₹115.99crore)wasreceivedfromPowerSystemDevelopmentFund(PSDF)forUnifiedRealTimeDynamicStateMeasurement(URTDSM).InadditiontoGrantreceived,aninterestof₹6.95crore(PreviousYearNil)creditedtotheGrant.
4. GrantinAidof₹93.87crore(PreviousYear₹164.13crore)wasreceivedfromMinistryofNaturalResources&Environment(MNRE)forestablishmentoftransmissionsystemassociatedwithUltraMegaSolarParksinAndhraPradesh,Karnataka,MadhyaPradesh,RajasthanandGujarat.InadditiontoGrantreceived,aninterestof₹0.83crore(PreviousYearNil)creditedtotheGrant.
5. GrantinAidof₹7.01crore(PreviousYearNil)receivablefromMinistryofNew&RenewableEnergyforestablishingsolarrooftopplantsinvariousbuildingsofPOWERGRIDunderachievementlinked/incentiveawardschemeforGovernmentSector.
Further Notes: a) Inexerciseofpowersu/s178oftheElectricityAct2003,CentralElectricityRegulatoryCommission(CERC)hasnotified“CERC(Termsand
Conditionsoftariff)Regulations2014”videorderdated21stFebruary,2014forthedeterminationoftransmissiontarifffortheblockperiod2014-19.
b) Thecompanyhasrecognisedtransmissionincomeduringtheyearasperthefollowing:- i)₹27278.92Crore(previousyear₹24572.91Crore)asperfinaltariffordersissuedbyCERC. ii) ₹5387.40Crore(previousyear₹4234.17Crore)inrespectoftransmissionassetsforwhichfinaltariffordersareyettobeissuedas
perCERCTariffRegulationsandotherordersinsimilarcases.c) Consequent to the final order issued by CERC, transmission income includes ₹285.42 crore (increase) (Previous Year ₹79.33 Crore
(decrease)) pertaining to earlier years.d) Otheroperatingincomeincludesinterestondifferentialbetweenprovisional&finaltariffandincomefromfinancelease.e) TheCERCorder dated 26March 2018provides that PNMTL is entitled for tariff for the entire transmission systemafter the 765KV
Salem-MadhugiriTransmissionlineisputundercommercialoperation.Theabovelinewasdeclaredinoperationfrom26th Jan 2019 and accordinglyrevenuefromoperationwasrecognisedasperthetariffspecifiedinTransmissionServiceAgreement(TSA).
f) Refer note no 47 for disclosure as per Ind AS 115 “ Revenue from Contracts with Customer”.
Consolidated Financial Statements
308
Note36/Other income
Note 37/Employee benefits expense
(` in Crore)
(` in Crore)
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Interest income from financial assets at amortised costInterest on Govt.securities - 0.07 Indian Banks 84.22 110.72 Interest on Loan to Joint Ventures (JVs) 2.40 -Others* 19.69 14.62
106.31 125.41 Interest from advances to contractors 49.01 66.32
155.32 191.73 Dividend income from investment in Equityinvestmentsdesignatedatfairvaluethroughothercomprehensiveincome 5.42 5.58
5.42 5.58OthersProfitonsaleofProperty,PlantandEquipment 1.26 0.45 FinanceIncomefromfinancelease 69.66 73.64 Surcharge 203.08 156.61 FERV gain 0.16 0.33 Provisions written back 28.25 8.36FairValuegainoninitialrecognitionofFinancialliability/investment 58.26 50.95 Miscellaneous income ** 187.72 111.62
548.39 401.96 709.13 599.27
Less:Transferredtoexpenditureduringconstruction(Net)-Note43 106.93 122.35 TOTAL 602.20 476.92
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Salaries,wages,allowances&benefits 1838.79 1844.95Contribution to provident and other funds 228.50 112.24 StaffWelfareexpenses(IncludingDeferredEmployeecost) 233.25 193.10
2300.54 2150.29 Less:TransferredtoExpenditureduringConstruction(Net)-Note43 509.80 544.40
TransferredtoCSRexpenses-Note40 7.17 6.80Total 1783.57 1599.09
Further Notes: *Othersincludeinterestonemployeeloans&unwindingoffinancecostonemployeeloans. **MiscellaneousincomeincludeSaleofScrap,InsuranceClaimRecovery,UIChargesetc.
Further Notes:
a) Refer note 60 for Remuneration to Key Managerial Personnel (KMPs).
b) PayrevisionofExecutiveandNon-executiveimplementedduringthecurrentfinancialyearandanamountof₹18.67crores(Netofamounttransferredtoexpenditureduringconstruction)waswrittenbackagainstprovisionforwagerevision.
c) Special allowance was settled as per the rates approved by Ministry of Power and Department of Public Enterprises to employees who are postedinthedifficultandfarflungareas.Anamountof₹22.65croreswasrecoveredformemployeesduringthecurrentyearbeingtheexcessamountpaidinearlierperiod.
d) Refernoteno.68fordetailsofEmployeeBenefitObligations.
309
Note 38/Finance costs(` in Crore)
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Interest and finance charges on financial liabilities at amortised costIndianBanks&FinancialInstitutions 2094.61 1367.84Foreign Banks and Financial Institutions 956.83 558.71Secured/UnsecuredredeemableBonds 6427.66 6560.03 Foreign Currency Bonds 147.78 134.89
Unwinding of discount on financial liabilities 113.53 63.11 Interest - Others 34.53 15.45
9774.94 8700.03Other Finance charges
Commitment charges 7.08 10.13 Guarantee Fee 449.17 296.95 Others* 117.00 62.06
573.25 369.14 Exchange differences regarded as adjustment to Borrowing Cost (112.00) 205.10
461.25 574.24 10236.19 9274.27
Less:TransferredtoExpenditureduringConstruction(Net)-Note43 1499.62 1950.13 Total 8736.57 7324.14
Further Notes: *Othersincludesmanagementfees,agencyfees,trusteefees,front-endfees,interestonlandcompensation,tree&cropcompensationetc. Note 39/Depreciation and amortization expense (` in Crore)Particulars For the year ended
31st March, 2019For the year ended
31st March, 2018DepreciationofProperty,PlantandEquipment 10712.55 9346.43 Amortization of Intangible assets 111.95 101.01
10824.50 9447.44 Less:TransferredtoExpenditureDuringConstruction(Net)-Note43 10.76 12.81
10813.74 9434.63 Less:Depreciation amortised due to FERV adjustment 272.79 203.64 Charged to Statement of Profit & Loss 10540.95 9230.99
Note 40/Other expenses (` in Crore)Particulars For the year ended
31st March, 2019For the year ended
31st March, 2018Repair & MaintenanceBuildings 86.40 64.69 Plant&MachinerySub-Stations 363.07 333.00 Transmission lines 304.03 149.89Telecomequipments 35.96 37.25 Others 42.93 38.69
745.99 558.83System and Market Operation Charges 10.77 8.42Power charges 259.39 242.56 Less: Recovery from contractors 3.03 1.14
256.36 241.42 ExpensesofDieselGeneratingsets 4.95 5.04 Stores consumed 10.61 8.67Watercharges 9.77 2.70 RightofWaycharges-Telecom 8.20 7.57 PatrollingExpenses-Telecom 1.38 2.95 LastMileconnectivity-Telecom 9.01 9.83Training&RecruitmentExpenses 31.67 30.82Less:Fees for training and application 1.55 2.00
30.12 28.82
Consolidated Financial Statements
310
(` in Crore)
Payments to Statutory AuditorsAudit Fees 1.31 1.20 TaxAuditFees 0.33 0.26 In Other Capacity 1.15 1.21 Arrears 0.03 0.36 OutofpocketExpenses 1.02 1.00
3.84 4.03 Advertisement and publicity 14.00 14.07 Printing and stationery 7.25 5.73 Books Periodicals and Journals 1.77 1.48EDP hire and other charges 17.85 10.71 Entertainmentexpenses 2.74 3.17 Brokerage&Commission 1.18 1.12 Research&Developmentexpenses 12.67 1.33 CostAuditandPhysicalverificationFees 1.35 1.27 Rent 13.95 14.60 CERCpetition&Othercharges 76.51 63.40 Miscellaneousexpenses 100.59 96.21 HorticultureExpenses 28.90 27.11 SecurityExpenses 260.12 243.42 Hiring of Vehicle 156.29 143.66 Insurance 104.35 79.31 Ratesandtaxes 45.01 35.28License Fees to DOT 59.11 60.38Bandwidthchargesdarkfibreleasecharges(Telecom) 27.71 30.70 CorporateSocialResponsibility(CSR)Expenses* 196.28 157.99 TransitAccomodationExpenses 25.42 22.28Less : Income from Transit Accomodation 1.67 1.36
23.75 20.92 ForeignExchangeRateVariation 226.02 162.08Provisions for
Doubtful loans, advances, debts, claims etc. 398.07 35.31 Obsolescence in Stores 8.51 14.86Shortages in Stores - 0.42 Others** 4.00 -
410.58 50.59 3258.74 2515.30
Less:TransferredtoExpenditureduringConstruction(Net)-Note43 230.57 288.353028.17 2226.95
LossonDisposal/WriteoffofProperty,Plant&Equipment 26.84 10.75 Total 3055.01 2237.70
Further Note: *Includesanamountof₹7.17crore(PreviousYear₹6.80crore)transferredfromNoteNo37-’EmployeeBenefitsExpense’ **ProvisionfordiminutioninthevalueofInvestmentinJVCompany(RINLPOWERGRIDTLTPrivateLimited)
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Legalexpenses 26.69 21.30 Professional charges 24.99 75.52 Consultancyexpenses 84.67 108.95Communicationexpenses 16.39 16.03 InlandTravellingExpenses 117.67 104.67 Foreign travel 11.09 11.11
128.76 115.78Tenderexpenses 13.42 12.11 Less: Sale of tenders 1.56 1.89
11.86 10.22
Note 40/Other expenses (Contd.)
311
Note 41/Net Movement in Regulatory Deferral Account Balances-Incomes/(expenses) (net of tax)
Note 42/Other Comprehensive Income
Note 43/ Expenditure during Construction (Net)
(` in Crore)
(` in Crore)
(` in Crore)
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Deferredassetsfordeferredtaxliability* (3472.89) 3121.19 Foreign Currency Fluctuation 232.27 195.92 EmployeeBenefitsExpense 19.67 11.31
(3,220.95) 3,328.42Taxonnetmovementinregulatorydeferralaccountbalances (694.08) 44.23 TOTAL (2526.87) 3284.19
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
ItemsthatwillnotbereclassifiedtoProfitorLossGain/(Loss)onvaluationofInvestmentinEquity (14.15) (12.92)Provisions for actuarial valuation (0.26) 37.58
(14.41) 24.66 Less:TransferredtoExpenditureduringConstruction(Net)-Note43 2.34 10.94
(16.75) 13.72 IncomeTaxrelatingtoitemsthatwillnotbereclassifiedtoProfitorLoss (0.45) 5.69 Items that will not be reclassified to Profit or Loss (net of tax) (16.30) 8.03
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
A. Employees Remuneration & BenefitsSalarieswagesallowancesandbenefits 424.68 486.71Contribution to provident and other funds 53.81 29.97 Welfareexpenses 31.31 27.72 Total (A) 509.80 544.40
B. Other ExpensesRepair and maintenance 7.45 5.67 Power charges 5.12 2.65 Less: Recovery from contractors 1.87 0.75
3.25 1.90 ExpensesonDieselGeneratingsets 0.29 0.45 Watercharges 0.34 -Training&RecruitmentExpenses 0.11 0.98Legalexpenses 5.89 3.23 Professional charges 3.79 58.51Consultancyexpenses 114.98 108.76Communicationexpenses 2.65 2.13 Travelling&Conv.exp.(IncludingForeignTravel) 28.55 27.16 Tenderexpenses 6.31 10.32 Less: Sale of tenders 1.44 1.64
4.87 8.68Payment to Auditors 0.17 0.13 Advertisement and Publicity 0.20 1.03 Printing and stationery 0.75 0.71 Books, Periodicals and Journals 0.04 0.01 EDP hire and other charges 0.19 0.23 Entertainmentexpenses 0.35 0.40 Brokerage and commission 0.01 0.03 Rent 2.68 3.27
Further Note: *Refertonoteno55forreclassificationofprioryearpresentation. Refer to note no 54 for detailed disclosure on Regulatory Deferral Account Balances.
Consolidated Financial Statements
312
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Miscellaneousexpenses 7.30 13.78HorticultureExpenses 0.90 0.64 SecurityExpenses 16.67 19.28Hiring of Vehicles 23.92 24.03 Insurance 0.01 0.03 Ratesandtaxes 3.83 6.25 Bandwidthcharges,darkfibreleasecharges(Telecom) 0.08 0.13 TransitAccomodationExpenses 1.30 0.93 Less : Income from Transit Accomodation - -
1.30 0.93 Total (B) 230.57 288.35
C.Depreciation/Amortisation 10.76 12.81Total (C) 10.76 12.81
D. Finance Costsa)Interestandfinancechargesonfinancialliabilitiesatamortisedcost
Government of IndiaIndian Banks and Financial Institutions 405.33 301.55 Foreign Banks and Financial Institutions 256.27 131.59 Secured/UnsecuredRedeemableBonds 744.89 1176.21 Foreign Currency Bonds 2.70 5.17 Others 55.32 44.74
1464.51 1659.26 b)Otherfinancecharges
Commitment charges 5.62 8.33Guarantee fee 108.34 71.61 Others 46.04 37.93
160.00 117.87 c) FERV adjustment to borrowing cost (124.89) 173.00 Total (D) 1499.62 1950.13
E. Less: Other IncomeInterest fromIndian banks - 11.82Contractors 48.04 60.12 Others 1.35 -
49.39 71.94 Miscellaneous income 57.54 50.41 Total (E) 106.93 122.35
F. Less: Other Comprehensive IncomeOther Comprehensive Income 2.34 10.94 Total (F) 2.34 10.94 GRAND TOTAL (A+B+C+D-E-F) 2141.48 2662.40
Note 43/ Expenditure during Construction (Net) (Contd.)(` in Crore)
313
44. Interest in Other Entities 44.1 Subsidiaries: The Group’s subsidiaries at 31stMarch,2019aresetoutbelow.Unlessotherwisestated,theyhavesharecapitalconsistssolelyof
equitysharethatarehelddirectlybytheGroup,andtheproportionofownershipinterestheldequalsthevotingrightsheldbythe Group:
(i) All Subsidiary companies are unlisted entities. (ii) Financial statements used for consolidation are audited.* ThecompanywasformedasSPVforexecutionofVemagiriTransmissionsystemallocatedonTariffBasedCompetitiveBidding
(TBCB).CERCvideorderdated09.05.2013and27.09.2013interaliastatedthatVemagiriTransmissionsystemcannotbeexecutedin its present form. In this scenario, the company may not be able to do further any activity and may cease to be a going concern in near future.
** 100%equity in Powergrid Jawaharpur FirozabadTransmission Limited acquired fromRECTransmission Projects Limited on 21stDecember,2018.
44.1.1 The group hasmade further Investment of ₹ 173.00 crore (Previous Year ₹ Nil crore) in Powergrid Jabalpur TransmissionLimited which is wholly owned subsidiary company of the group.
44.1.2 Thegrouphasmade further Investmentof₹5.00crore (PreviousYear₹54.95crore) inPowergridKalaAmbTransmissionLimited which is wholly owned subsidiary company of the group.
44.1.3 ThegrouphasmadefurtherInvestmentof₹52.00crore(PreviousYear₹50.00crore)inPowergridNMtransmissionLimitedwhich is wholly owned subsidiary company of the group.
44.1.4 ThegrouphasmadefurtherInvestmentof₹228.40crore(PreviousYear₹Nilcrore)inPowergridParliTransmissionLimitedwhich is wholly owned subsidiary company of the group.
44.1.5 ThegrouphasmadefurtherInvestmentof₹515.45crore(PreviousYear₹Nilcrore) inPowergridSouthernInterconnectorTransmission System Limited which is wholly owned subsidiary company of the group.
44.1.6 ThegrouphasmadefurtherInvestmentof₹150.00crore(PreviousYear₹151.20crore)inPowergridWaroraTransmissionLimited which is wholly owned subsidiary company of the group.
44.1.7 Thegrouphasmade further Investment of ₹Nil crore (PreviousYear ₹0.05 crore) inPowergridMithilanchalTransmissionLimited (erstwhile ERSS XXI Transmission Limited) which is wholly owned subsidiary company of the group.
44.1.8 ThegrouphasmadefurtherInvestmentof₹Nilcrore(PreviousYear₹0.05crore)inPowergridVaranasiTransmissionSystemLimited(erstwhileWRNRPowerTransmissionLimited)whichiswhollyownedsubsidiarycompanyofthegroup.
Name of the Entity Place of business
Proportion (%) of Shareholding as on
Principle activities
31st March, 2019
31st March, 2018
1 Powergrid Jabalpur Transmission Limited India 100% 100% Transmission 2 Powergrid Kala Amb Transmission Limited India 100% 100% Transmission3 Powergrid NM transmission Limited India 100% 100% Transmission4 Powergrid Parli Transmission Limited India 100% 100% Transmission5 Powergrid Southern Interconnector Transmission
System Limited India 100% 100% Transmission
6 PowergridUnchaharTransmissionLimited India 100% 100% Transmission7 Powergrid Vemagiri transmission Limited * India 100% 100% Transmission8 Powergrid Vizag Transmission Limited India 100% 100% Transmission9 PowergridWaroraTransmissionLimited India 100% 100% Transmission10 Powergrid Medinipur Jeerat Transmission Limited
(erstwhile Medinipur Jeerat Transmission Limited) India 100% 100% Transmission
11 Powergrid Mithilanchal Transmission Limited (erstwhile ERSS XXI Transmission Limited)
India 100% 100% Transmission
12 Powergrid Varanasi Transmission System Limited (erstwhileWRNRPowerTransmissionLimited)
India 100% 100% Transmission
13 Powergrid Jawaharpur Firozabad Transmission Limited(erstwhile Jawaharpur Firozabad Transmission Limited)**
India 100% NA Transmission
Consolidated Financial Statements
314
44.1.9 Duringtheyeargrouphasmadeinvestmentof₹0.05croreinPowergridJawaharpurFirozabadTransmissionLimited(erstwhileJawaharpur Firozabad Transmission Limited), a wholly owned subsidiary company. The Company was taken over from REC Transmission Projects Company Limited vide share purchase agreement dated 21stDecember,2018tocarryoverthebusinessawardedundertariffbasedcompetitivebidding,aftertransferPowergridJawaharpurFirozabadTransmissionLimitedbecomewholly owned subsidiary of the Group.
44.2 Joint Ventures: Set out below are joint ventures of the Group as at 31st March 2019, which in the opinion of the management, are material to
theGroup.Theentitieslistedbelowhavesharecapitalconsistingsolelyofequityshares,whicharehelddirectlybyownershipinterest in the same as the proportion of voting rights held:
Name of the Entity Place of business
Proportion (%) of
Shareholding as at 31st
March
Carrying amount as at 31st March
Nature of activity
0.01 2018 2019 20181 Powerlinks Transmission
LimitedIndia 49 49 447.58 422.86 Transmission system associated with
TalaHEPinBhutan–undersuccessfuloperation since Aug’ 06
2 Torrent Powergrid Limited
India 26 26 35.56 34.00 Transmission System associated with 1100 MWSugengeneratingprojectatSurat-progressively commissioned in Mar’11
3 Jaypee Powergrid Limited
India 26 26 105.45 103.64 Transmission system associated with 1000 MWPowerProjectatKarcham-WangtooinHP-progressivelycommissionedinApr’12
4 Parbati Koldam Transmission Company Limited
India 26 26 95.30 96.32 TransmissionLinesassociatedwithParbati-II(800MW)andKoldam(800MW)HEPs.-ProgressivelycommissionedinNov’15
5 Teestavalley Power TransmissionLimited#
India 28.23 26 101.47 93.82 Transmission System associated with 1200 MWTeesta–IIIHEPinSikkim
6 North East Transmission Company Limited
India 26 26 125.71 115.10 Transmission system associated with 726.6MWGasBasedCombinedCyclePowerProjectatPallatanainTripura.-Progressively commissioned in Feb’15
7 National High Power Test Lab Pvt Limited
India 20 20 26.08 27.83 To create high power short circuit test facility
8 Bihar Grid Company Limited
India 50 50 195.94 168.16 EstablishmentofIntra-StateTransmissionsystem in the State of Bihar
9 Kalinga Bidyut Prasaran NigamPvtLimited##
India 50 50 0.00 0.01 EstablishmentofIntra-StateTransmissionsystem in the State of Odisha
10 Cross Border Transmission Limited
India 26 26 23.03 20.57 EstablishmentofIndianPortionofIndo-Nepal Cross Border Transmission Line from MuzaffarpurtoSursand
11 RINLPOWERGRIDTLTPvt.Limited###
India 50 50 3.97 3.39 Establishment of manufacturing of Transmission Line Tower parts plant
12 Power Transmission Company Nepal Ltd
Nepal 26 26 10.46 9.50 EstablishmentofNepalPortionofIndo-Nepal Cross Border Transmission Line from Dhalkebar to Bittamod
(` in Crore)
(i) All joint venture companies are unlisted entities.
(ii) FinancialstatementsusedforconsolidationareunauditedexceptforPowerlinksTransmissionLimited,JaypeePowergridLimited,Torrent Powergrid Limited and North East Transmission Company Limited.
44. Interest in Other Entities (Contd.)
315
44. Interest in Other Entities (Contd.)# POWERGRID&TeestaUrjaLtdaretheJointventurepartnersinTeestavalleyPowerTransmissionLimited&holds26%&74
%equity,respectivelyasperShareholdingagreement.OncallofadditionalequitybyTeestavalleyPowerTransmissionlimited,POWERGRIDcontributedtheirshareamountingRs11.28crorewhiletheotherJVpartnerhasnotyetcontributedtheirshareofmoneyason31.03.2019.Consequently,theholdingofPOWERGRIDincreasedto28.23%ason31.03.2019against26%provided in shareholding agreement.
## POWERGRID’sBoardofDirectorsinitsmeetingheldon16th august 2017 accorded approval for initiating procedure for winding up/removalofthenameofKalingaBidyutPrasaranNigamPrivateLtdunderfasttrackExitmodeofRegistrarofCompanies(ROC).
### POWERGRID’sBoardofDirectorsinitsmeetingheldon1stMay2018accordedinprincipleapprovaltocloseRINLPowergridTLTPrivate Limited and seek consent of other JV Partner Rashtriya Ispat Nigam Limited. Accordingly Provision for diminution in value of investment has been made.
44.2.1 TheGrouphasmadefurtherinvestmentof₹11.28crore(Previousyear₹Nilcrore)inTeestavalleyPowerTransmissionLimited,ajointventurecompanyinwhich28.23%shareareheldbytheGroupandbalance71.77%shareareheldbyTeestaUrjaLimited.
44.2.2 TheGrouphasmadefurtherinvestmentof₹15.45crore(Previousyear₹7.74crore)inBiharGridCompanyLimited,ajointventurecompanyinwhich50%shareareheldbytheGroupandbalance50%shareareheldbyBiharStatePowerHoldingCompany.
44.2.3 TheGrouphasmadefurtherinvestmentof₹0.60crore(Previousyear₹Nilcrore)inRINLPowerGridTNTPvtLimited,ajointventurecompanyinwhich50%shareareheldbytheGroupandbalance50%areheldbyRashtriyaIspatNigamLimited.
44.2.4 TheGrouphasmadefurtherinvestmentof₹Nilcrore(Previousyear₹1.62crore)inPowerTransmissionCompanyLimitedNepalLtd,ajointventurecompanyinwhich26%shareareheldbytheGroup,50%sharesareheldbyNepalElectricityAuthority,10%sharesareheldbyIL&FSEnergyDevelopmentCompanyLimitedand14%sharesareheldbyHydroelectricityInvestment&development company Ltd.
44.2.5 Commitments and contingent liabilities in respect of joint venture:
44.2.6 Summarisedfinancialinformationforjointventures TablebelowprovidesummarisedfinancialinformationforthesejointventuresthatarematerialtotheGroup.Theinformation
disclosedreflectstheamountspresentedinthefinancialstatementsoftherelevantjointventure. Summarised Balance Sheet
Particulars 31st March, 2019 31st March, 2018Share of GroupCommitment 395.33 519.40Contingent Liabilities 69.70 53.12Total commitments and contingent liabilities 465.03 572.52
Particulars Powerlinks Transmission
Limited
Torrent Powergrid Limited
Jaypee Powergrid Limited
Parbati Koldam Transmission
Company Limited31st
March, 2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018Current AssetsCash&CashEquivalent 0.02 15.66 1.13 1.87 24.86 30.95 14.10 28.00Other Assets 120.35 274.50 48.13 40.62 80.95 57.88 105.96 104.65
Total Current Assets 120.37 290.16 49.26 42.49 105.81 88.83 120.06 132.65 Total Non-Current Assets 858.14 848.20 172.43 188.78 717.55 757.72 770.41 796.32 Current Liabilities
Financial Liabilities 12.21 172.35 25.26 21.12 63.71 62.16 73.49 60.08Other Liabilities 50.54 97.94 5.79 0.73 72.91 42.30 2.28 2.06
Total Current Liabilities 62.75 270.29 31.05 21.85 136.62 104.46 75.77 62.14 Non- Current Liabilities
Financial Liabilities - - 40.94 61.30 239.58 301.92 446.84 495.30 Other Liabilities 2.36 5.10 12.98 17.36 41.60 41.57 1.32 1.07
Total Non-Current Liabilities 2.36 5.10 53.92 78.66 281.18 343.49 448.16 496.37 Net Assets 913.40 862.97 136.72 130.76 405.56 398.60 366.54 370.46
(` in Crore)
(` in Crore)
Consolidated Financial Statements
316
Particulars North East Transmission
Company Limited
National High Power Test Lab
Pvt Limited
Bihar Grid Company Limited
Cross Border Transmission
Limited31st
March, 2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018Current AssetsCash&CashEquivalent 84.34 76.49 12.77 6.05 14.95 33.74 19.35 10.32 Other Assets 175.45 182.22 4.90 4.44 190.99 108.85 59.43 57.17
Total Current Assets 259.79 258.71 17.67 10.49 205.94 142.59 78.78 67.49 Total Non-Current Assets 1,607.62 1,725.21 336.35 341.17 1,808.81 1,565.18 190.20 200.25 Current Liabilities
Financial Liabilities 146.32 185.30 60.09 24.00 109.76 103.76 16.08 16.46 Other Liabilities 34.21 39.42 0.56 55.57 114.27 58.61 12.80 7.81
Total Current Liabilities 180.53 224.72 60.65 79.57 224.03 162.37 28.88 24.27 Non-Current Liabilities
Financial Liabilities 1,187.81 1,300.93 162.81 132.81 1,270.81 1,144.34 147.15 159.95 Other Liabilities 15.56 15.57 0.18 0.13 128.06 64.74 4.38 4.40
Total Non -Current Liabilities 1,203.37 1,316.50 162.99 132.94 1,398.87 1,209.08 151.53 164.35 Net Assets 483.51 442.70 130.38 139.15 391.85 336.32 88.57 79.12
Particulars Power Transmission Company Nepal Ltd
Teestavalley Power
Transmission Limited
Kalinga Bidyut Prasaran Nigam
Pvt Limited
RINL POWERGRID TLT Private
Limited
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018Current AssetsCash&CashEquivalent 1.35 16.06 10.62 66.49 - 0.01 0.20 0.18Other Assets 31.18 5.58 76.65 10.39 - - - -
Total Current Assets 32.53 21.64 87.27 76.88 - 0.01 0.20 0.18Total Non-Current Assets 79.87 80.56 1,616.48 1,528.45 - - 8.29 8.30Current Liabilities
Financial Liabilities 2.14 3.71 281.04 121.91 - - 0.55 1.10 Other Liabilities 0.99 2.82 39.30 40.43 - - - 0.01
Total Current Liabilities 3.13 6.53 320.34 162.34 - - 0.55 1.11 Non-Current Liabilities
Financial Liabilities 69.07 59.14 1,023.09 1,081.64 - - - -Other Liabilities - - 0.89 0.51 - - - -
Total Non-Current Liabilities 69.07 59.14 1,023.98 1,082.15 - - - -Net Assets 40.20 36.53 359.43 360.84 - 0.01 7.94 7.37
(` in Crore)
(` in Crore)
44. Interest in Other Entities (Contd.) Summarised Balance Sheet (Contd.)
317
Particulars Powerlinks Transmission
Limited
Torrent Powergrid Limited
JaypeePowergrid Limited
Parbati Koldam Transmission
Company Limited31st
March, 2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018Opening net assets 862.97 834.07 130.76 101.86 398.60 363.18 370.46 356.55 Investment by JV Partners - - - - - - - -Profitfortheyear 112.57 124.84 19.14 39.73 63.02 67.17 48.66 50.13 Other Comprehensive income (0.09) (0.18) (0.03) 0.01 - 0.04 0.06 (0.12)Dividend Paid 62.05 95.76 10.85 10.84 56.06 30.69 52.62 36.12 Other Adjustments - - (2.30) - - (1.10) (0.02) 0.02 Closing net assets 913.40 862.97 136.72 130.76 405.56 398.60 366.54 370.46 Group’ssharein% 49% 49% 26% 26% 26% 26% 26% 26%Group’s share in INR 447.58 422.86 35.56 34.00 105.45 103.64 95.30 96.32 Carrying Amount 447.58 422.86 35.56 34.00 105.45 103.64 95.30 96.32
Particulars Bihar Grid Company Limited
Kalinga Bidyut Prasaran Nigam
Pvt Limited
Cross Border Transmission
Limited
RINL POWERGRID TLT Pvt. Limited
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018Opening net assets 336.32 294.91 0.01 0.01 79.12 69.97 7.37 6.80Investment by JV Partner 30.90 15.48 - - 0.60 0.60 Profitfortheyear 24.63 25.93 - - 15.30 12.95 (0.03) (0.03)Other Comprehensive income - - - - - - - -Dividend Paid - - - - 5.85 7.59 - -Other Adjustments - - (0.01) - - 3.79 - -Closing net assets 391.85 336.32 - 0.01 88.57 79.12 7.94 7.37 Group’ssharein% 50% 50% 50% 50% 26% 26% 50% 50%Group’s share in INR 195.94 168.16 - 0.01 23.03 20.57 3.97 3.39 Carrying Amount 195.94 168.16 - 0.01 23.03 20.57 3.97 3.39
(` in Crore)
(` in Crore)
Reconciliation to carrying amounts
44. Interest in Other Entities (Contd.)
Consolidated Financial Statements
318
Particulars North East Transmission
Company Limited
National High Power Test Lab
Pvt Limited
Teestavalley Power
Transmission Limited
Power Transmission
Company Nepal Ltd
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018Opening net assets 442.70 378.69 139.15 149.83 360.84 360.19 36.53 32.22 Investment by JV Partners - - - - 11.28 - - 2.25 Profitfortheyear 65.56 83.84 (8.72) (10.72) (1.19) 4.95 8.56 8.31Other Comprehensive income 0.04 (0.02) (0.05) 0.04 (0.01) 0.01 - -Dividend Paid 24.80 19.81 - - - - 5.06 5.63 Other Adjustments 0.01 - - - (11.49) (4.31) 0.17 (0.62)Closing net assets 483.51 442.70 130.38 139.15 359.43 360.84 40.20 36.53 Group’ssharein% 26% 26% 20% 20% 28.23% 26% 26% 26%Group’s share in INR 125.71 115.10 26.08 27.83 101.52 93.82 10.46 9.50 Carrying Amount 125.71 115.10 26.08 27.83 101.52 93.82 10.46 9.50
Particulars Powerlinks Transmission
Limited
Torrent Powergrid Limited
Jaypee Powergrid Limited
Parbati Koldam Transmission
Company Limited31st
March, 2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018Revenue From Operations 146.14 161.23 46.52 63.22 159.22 165.05 161.14 167.02Other Income 9.43 12.68 2.91 3.52 5.63 3.68 5.74 7.76Total Income 155.57 173.91 49.43 66.74 164.85 168.73 166.88 174.78Employeebenefitsexpense 7.98 7.55 1.64 1.33 3.54 2.44 4.22 3.58Finance costs 9.73 16.92 6.37 8.5 38.05 46.66 47.61 53.07Depreciation and amortization expense
- - 16.44 16.44 52.80 52.94 49.22 49.30
Otherexpenses 9.68 10.67 5.15 3.35 6.14 4.95 4.00 3.02Total Expenses 27.39 35.14 29.6 29.62 100.53 106.99 105.05 108.97TaxExpenses 15.61 13.93 0.69 (2.61) 1.30 (5.43) 13.17 15.68Profitfortheyear 112.57 124.84 19.14 39.73 63.02 67.17 48.66 50.13Other Comprehensive income (0.09) (0.18) (0.03) 0.01 - 0.04 0.06 (0.12)Total Comprehensive income 112.48 124.66 19.11 39.74 63.02 67.21 48.72 50.01Dividend Received 25.22 38.99 2.34 2.34 12.09 6.63 11.35 7.80
(` in Crore)
(` in Crore)Summarised Statement of Profit and Loss
44. Interest in Other Entities (Contd.)Reconciliation to carrying amounts (Contd.)
319
Particulars Cross Border Transmission
Limited
RINL POWERGRID TLT Pvt. Limited
Power Transmission
Company Nepal Ltd
Teestavalley Power
Transmission Limited
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018Revenue From Operations 6.62 4.47 - - 16.52 16.34 85.33 30.98Other Income 29.68 31.49 - - 2.22 1.26 0.29 0.01Total Income 36.30 35.96 - - 18.74 17.60 85.62 30.99Employeebenefitsexpense 1.44 1.05 - - 0.63 0.54 1.43 0.47Finance costs 16.08 17.71 - - 3.65 2.91 50.39 21.56Depreciation and amortization expense
0.02 0.02 - 0.01 4.56 4.07 28.25 10.89
Otherexpenses 3.46 4.23 0.03 0.02 1.25 1.77 5.82 0.88Total Expenses 21.00 23.01 0.03 0.03 10.09 9.29 85.89 33.80TaxExpenses - - - - 0.09 - 0.92 (7.76)Profitfortheyear 15.30 12.95 (0.03) (0.03) 8.56 8.31 (1.19) 4.95Other Comprehensive income - - - - - - (0.01) 0.01Total Comprehensive income 15.30 12.95 (0.03) (0.03) 8.56 8.31 (1.20) 4.96Dividend Received - 4.05 - - 1.32 1.46 - -
Particulars North East Transmission
Company Limited
National High Power Test Lab
Pvt Limited
Bihar Grid Company Limited
Kalinga Bidyut Prasaran Nigam
Pvt Limited31st
March, 2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018
31st March,
2019
31st March,
2018Revenue From Operations 329.80 342.63 26.03 20.83 275.59 204.36Other Income 11.27 10.57 0.41 1.27 15.08 6.37 - 1.17Total Income 341.07 353.20 26.44 22.10 290.67 210.73 - 1.17Employeebenefitsexpense 3.38 2.88 2.36 1.81 8.68 5.08 - -Finance costs 124.87 165.30 15.83 14.80 95.76 62.96 - -Depreciation and amortization expense
113.24 116.20 8.37 6.28 64.29 26.73 - -
Otherexpenses 16.53 10.02 8.60 9.93 9.83 3.70 - 1.17Total Expenses 258.02 294.4 35.16 32.82 178.56 98.47 - 1.17TaxExpenses 17.49 (25.04) - - 87.48 86.33 - -Profitfortheyear 65.56 83.84 (8.72) (10.72) 24.63 25.93 - -Other Comprehensive income 0.04 (0.02) (0.05) 0.04 - - - -Total Comprehensive income 65.60 83.82 (8.77) (10.68) 24.63 25.93 - -Dividend Received 5.35 4.28 - - - - - -
(` in Crore)
(` in Crore)
45. Cashequivalentofdeemedexportbenefitsavailedof₹209.99croreinrespectofsupplieseffectedforEastSouthInterConnector-IITransmissionProject(ESI)andSasaramTransmissionProject(STP),werepaidtotheCustomsandCentralExciseAuthoritiesinaccordancewithdirectionfromMinistryofPower(GOI)during2002-03duetonon-availabilityofWorldBankloanfortheentiresuppliesinrespectof ESI project and for the supplies prior to March 2000 in respect of STP project and the same was capitalised in the books of accounts. Thereafter,WorldBankhadfinancedboththeESIprojectandSTPprojectasoriginallyenvisagedandtheybecameeligiblefordeemedexportbenefits.Consequently,thegrouphaslodgedclaimswiththeCustomsandExciseAuthorities.
Summarised Statement of Profit and Loss (Contd.)
44. Interest in Other Entities (Contd.)
Consolidated Financial Statements
320
ImpactsonStatementofProfitandLossfortheperiodendedMarch31,2019 DuetoImplementationofIndAS115,RevenuefromOperationincreasedby₹88.29Crore,FinanceCost increasedby₹37.18Crore,
OtherExpensesincreaseby₹7.06CroreandProvisionfortax increasedby₹9.50Crore.ProfitafterTaxincreasedby₹34.55croresduring the year.
b) Formilestonebasedcontracts(consultancycontracts),followingamountrelatestounsatisfiedperformanceobligations-
c) Thefollowingtabledisclosesthemovementinunbilledrevenueduringtheyearended31March,2019and31March,2018.
d) Thefollowingtabledisclosesthemovementincontractliabilityduringtheyearended31March2019and31March2018.
Particulars As previously reported Ind AS 115 adjustments As restated
Contract liabilities 1475.79 (104.37) 1371.42OtherEquity–GeneralReserve 49194.40 104.37 49298.77
Particulars Year ended March 31, 2019 Year ended March 31, 2018
Transaction price related to unsatisfied (or partially satisfied)performance obligation
2110.24 2850.96
Theseperformanceobligationsareexpectedtobesatisfiedwithin 5 Years 4 Years
Particulars Year ended March 31, 2019 Year ended March 31, 2018
Balance at the beginning 4123.12 2542.29Add: Revenue recognised during the period 5292.99 3696.30Less: Invoiced during the period 2714.17 2096.55Less:Impairment/reversalduringtheperiod 105.71 18.92Add:Translationgain/(Loss) - -Balance at the end 6596.23 4123.12
Particulars Year ended March 31, 2019 Year ended March 31, 2018
Balance at the beginning 1371.42 1502.10Add: Advance billing during the period 1021.17 975.43Less: revenue recognised during the period
a) From contract liability as at beginning of the periodb) From contract liability recognised during the period
497.26
147.62
870.05
236.13 Add:Translationgain/(Loss) 0.13 0.07Balance at the end 1747.84 1371.42
(` in Crore)
(` in Crore)
(` in Crore)
(` in Crore)
InthisregardtheCumulativeamountreceivedandde-capitalizedupto31stMarch,2019is₹12.12crore(PreviousYear₹12.12crore).TheGroupcontinuedtoshowthebalanceof₹197.87croreasat31stMarch,2019(PreviousYear₹197.87crore)inthecapitalcostoftherespectiveassets/projectspendingreceiptofthesamefromCustomsandExciseAuthorities.
46. a) Balances of Trade Receivables and recoverable shown under Assets and Trade and Other Payables shown under Liabilities include balances subject to confirmation/reconciliation and consequential adjustments if any.However reconciliations are carried out onongoing basis.
b) In the opinion of themanagement, the value of any of the assets other than Property, Plant and Equipment and non-currentinvestments on realization in the ordinary course of business will not be less than value at which they are stated in the Balance Sheet.
47. a) Impact of application of Ind AS 115 ‘Revenue from Contracts with Customers’ EffectiveApril1,2018,theGrouphasappliedIndAS115whichestablishesacomprehensiveframeworkfordeterminingwhether,how
muchandwhenrevenueistoberecognised.IndAS115replacesIndAS18RevenueandIndAS11ConstructionContracts.TheGrouphas applied Ind AS 115 retrospectively only to contracts that are not completed as at the date of initial application, with the cumulative effectofinitialapplicationrecognisedasanadjustmenttotheopeningbalanceofGeneralReserveatApril1,2018.InaccordancewiththetransitionguidanceinIndAS115hasonlybeenappliedtocontractsthatareincompleteasatApril1,2018.
TheGroup’saccountingpoliciesforitsrevenuestreamsaredisclosedinNote2.18.Apartfromeffectofsignificantfinancingcomponentintelecomcontracts,theapplicationofIndAS115doesnothaveanysignificantimpactonthefinancialpositionand/orfinancialperformanceoftheGroup.TheamountofadjustmentforeachlineitemoffinancialstatementaffectedbytheapplicationofIndAS115isasgivenbelow.
Impactsonassets,liabilitiesandequityasatApril1,2018
321
e) Theentitydeterminestransactionpricebasedonexpectedvaluemethodconsideringitspastexperiencesofrefundsorsignificantreversalsinamountofrevenue.Inestimatingsignificantfinancingcomponent,managementconsidersthefinancingelementinbuiltinthetransactionpricebasedonimputedrateofreturn.ReconciliationofContractedPricevis-a-visrevenuerecognizedinprofitorlossstatementisasfollows-
f) Aprovisionof₹392.24crorehasbeencreatedinthecurrentfinancialyearagainsttradereceivablesandunbilleddebtorsoutstandingason31.03.2018fromafewcustomersandrevenuefromtransmissionandsurchargethereonamountingto₹319.75crorehasnotbeen recognised during the year due to uncertainty of collection of consideration in line with Ind AS 115 ‘Revenue from Contracts with Customer’.
48. The group has been entrusted with the responsibility of billing collection and disbursement (BCD) of the transmission charges on behalf of all the ISTS (Interstate transmission System) licensees through the mechanism of the POC (Point of Connection) charges introduced w.e.f. 01stJuly,2011whichinvolvesbillingbasedonapproveddrawl/injectionofpowerinplaceofoldmechanismbasedonMegaWattallocationofpowerbyMinistryofPower.Bythismechanism,revenueofthegroupwillremainunaffected.
SomeofthebeneficiariesaggrievedbythePOCmechanismhavepreferredappealbeforevariousHighCourtsofIndia.Allsuchappealshave been transferred to Delhi High Court as per order of the Supreme Court on the appeal preferred by the group and group has also requested for directing agitating states to pay full transmission charges as per newmethodology pending settlement of thematter.HonourableDelhiHighCourthasdirectedalltheabovebeneficiariestoreleasepaymentsandaccordinglythebeneficiarieshavestartedmaking payments as per the said directions.
49. (i) FERVLossof₹1441.50crore(PreviousYearLossof₹146.36crore)hasbeenadjustedintherespectivecarryingamountofProperty,PlantandEquipment/CapitalworkinProgress(CWIP)/LeaseReceivables
(ii) FERVLossof₹225.86crore(PreviousYearLossof₹161.75crore)hasbeenrecognisedintheStatementofProfitandLoss.50.Borrowingcostcapitalisedduringtheyearis₹1499.62crore(previousyear₹1950.13crore)intherespectivecarryingamountofProperty,
PlantandEquipment/CapitalworkinProgress(CWIP)asperIndAS23‘BorrowingCosts’.51. Basedoninformationavailablewiththegroup,therearefewsuppliers/serviceproviderswhoareregisteredasmicro,smallormedium
enterprise under The Micro, Small and Medium Enterprises Development Act,2006 (MSMED Act, 2006). Information in respect of micro and smallenterprisesasrequiredbyMSMEDAct,2006isgivenasunder:
Particulars Year ended March 31, 2019 Year ended March 31, 2018
Contracted price 34563.53 29661.30Add/(Less)-Discounts/rebatesprovidedtocustomer (218.70) (214.57)Add/(Less)-Performancebonus 217.41 337.51Add/(Less)-Adjustmentforsignificantfinancingcomponent 88.29 -Add/(Less)-Otheradjustments 408.59 169.38Revenuerecognizedinprofitorlossstatement 35059.12 29953.62
Sr. No ParticularsTrade Payables Others
31st March, 2019
31st March, 2018
31st March, 2019
31st March, 2018
1 Principal amount and interest due thereon remaining unpaid to any supplier as at end of each accounting year: PrincipalInterest
33.270.05
2.33Nil
22.30Nil
12.88Nil
2 The amount of Interest paid by the buyer in terms of section 16 of the MSMED Act, 2006 along with the amount of the payment made to the supplier beyond the appointed day during each accounting year
Nil Nil Nil Nil
3 The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specifiedunderMSMEDAct,2006
0.01 Nil Nil Nil
4 The amount of interest accrued and remaining unpaid at the end of each accounting year
0.04 Nil Nil Nil
5 The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowanceasadeductibleexpenditureundersection23oftheMSMED Act 2006
Nil Nil Nil Nil
(` in Crore)
(` in Crore)
Consolidated Financial Statements
322
52. Disclosure as per IND AS 17 ‘Leases’ a) Finance Leases:- TheGrouphasclassifiedandaccountedforthearrangementsforstatesectorULDCassetsandbilateralassetsasfinanceleasesbased
ontheprinciplesenunciatedinAppendixCofIndAS17,‘Leases’.AgreementsforStateSectorULDCareforaperiodof15yearsandBilateralLineAssetswiththebeneficiaryarefortheperiodasspecifiedinCERCRegulations
OtherNon-CurrentFinancialAssetsandOtherCurrentFinancialAssetsincludeleasereceivablesrepresentingthepresentvalueoffutureleaserentalsreceivableonthefinanceleasetransactionsenteredintobythegroupwiththeconstituentsinrespectofStateSectorULDCandBilateralLineAssets.DisclosurerequirementsofIndAS17‘Leases’notifiedundertheCompaniesAct,2013aregivenas under:
(i)Thereconciliationoftheleasereceivables(asperprojectcostdatasubmittedto/approvedbytheCERCfortarifffixation)isasunder:
(ii)Detailsofgrossinvestmentinlease,un-earnedfinanceincomeandpresentvalueofminimumleasepaymentsreceivablesattheendoffinancialyearisgivenasunder:
(iii) The value of contractual maturity of such leases is as under
(iv)Therearedifferencesinbalanceleasereceivableasatyearendasperaccountsandtariffrecordsonaccountof: (a)Undischargedliabilitiesamountingto₹74.43crore(PreviousYear₹52.19crore).Suchcostbecomepartofprojectcostonlyon
discharge of such liabilities. (b)UnamortizedFERVonloansincludedinleasereceivableamountingto₹17.23crore(PreviousYear₹17.15crore).SuchFERVare
allowedtoberecoveredaspartoftariffonactualpaymentbasis. b) Operating leases:- Thegroup’ssignificantleasingarrangementsareinrespectofoperatingleasesofpremisesforresidentialuseofemployees,offices
and guest houses/transit campswhich are usually renewable onmutually agreed terms but are not non-cancellable. Employeebenefitsexpenseinclude₹12.91crore(previousyear₹26.12crore)towardsleasepayments,netofrecoveries,inrespectofpremisesforresidentialuseofemployees.Leasepaymentsof₹13.95crore(previousyear₹14.60crore)inrespectofpremisesforofficesandguesthouse/transitcampsareshownundertheheadRentinNote40-Otherexpenses.
Particulars 31st March, 2019 31st March, 2018
Grossvalueofassetsacquiredandleasedatthebeginningoftheyear 1627.20 1581.71Add Adjustmentforgrossvalueofassetsacquiredpriortothebeginningofthe
year(0.52) (23.84)
Revised Gross value of the assets at the beginning of the year 1626.68 1557.87Less Capital recovery provided up to the beginning of the year 1050.19 970.59Add Capitalrecoveryforassetsacquiredpriortothebeginningoftheyear 30.86 19.50
Revised Capital recovery provided up to the beginning of the year 1081.05 990.09Capital recovery outstanding as on 31stMarchoflastfinancialyear 545.64 567.78
Add Grossvalueofassetsacquiredandleasedduringcurrentfinancialyear 43.73 69.32Less Capital recovery for the current year 44.88 60.08
Lease receivables at end of the year 544.49 577.02
Particulars 31st March, 2019 31st March, 2018
Gross investment in Lease 1597.41 1742.24Un-earnedFinanceIncome 1052.92 1165.22Present value of Minimum Lease Payment (MLP) 544.49 577.02
Particulars Gross Investment in Lease Present Value of MLPs
As at 31st March, 2019
As at 31st March, 2018
As at 31st March, 2019
As at 31st March, 2018
Not later than one year 132.39 130.31 47.50 46.45Laterthanoneyearandnotlaterthanfiveyears 502.22 492.86 173.54 170.38Laterthanfiveyears 962.80 1119.07 323.45 360.19Total 1597.41 1742.24 544.49 577.02
(` in Crore)
(` in Crore)
(` in Crore)
323
Particulars Amount in Foreign Currency Amount
31st March,2019
31st March,2018
31st March,2019
31st March,2018
Borrowings USD 482.67 437.34 33676.03 28632.86EURO 51.73 49.44 4078.18 4037.84
SEK 249.45 280.65 1883.31 2245.21JPY 2345.42 163.59 1487.70 101.95
Interest accrued but not due thereon includingAgencyFee,CommitmentFee&otherCharges
USD 3.68 2.36 256.90 154.69
EURO 0.22 0.20 17.22 15.94SEK 1.09 1.12 8.22 8.97JPY 3.94 0.41 2.50 0.26
TradePayables/depositsandretentionmoney USD 7.29 11.70 508.62 766.00EURO 1.05 1.53 82.74 124.96
SEK - 17.81 - 142.48CHF 0.03 0.04 2.36 2.78GBP 1.83 1.94 167.90 180.67JPY - 1.04 - 0.65
Trade receivables and Bank balances USD 0.17 0.04 11.86 2.62NPR 1.65 - 1.03 -EURO - - - -
FJI 0.002 - 0.07 -Amountofcontractsremainingtobeexecuted USD 13.61 14.25 949.43 932.95
EURO 7.56 27.82 596.03 2272.06SEK 31.91 162.92 240.92 1303.36CHF - - - -GBP 2.68 8.95 245.89 833.51JPY 216.16 744.28 137.11 463.84
(` in Crore)
53. Foreign Currency Exposure Not hedged by a derivative instrument or otherwise
54. Disclosures relating to Regulatory Deferral Account Balances i) Nature of rate regulated activities TheGroupismainlyengagedinthebusinessoftransmissionofpower.Thetarifffortransmissionofpower isdeterminedbythe
CERCthroughtariffregulations.ThetariffisbasedoncapitalcostadmittedbyCERCandprovidesfortransmissionchargesrecoveryofannualfixedcostconsistingofReturnonequity,Interestonloancapital,Depreciation,interestonworkingcapitalandOperation&Maintenanceexpenses.
ii) Recognition and measurement FERVarisingduringtheconstructionperiodforsettlement/translationofmonetaryitems(otherthannon-currentloans)denominated
inforeigncurrencytotheextentrecoverable/payabletothebeneficiariesascapitalcostasperCERCTariffRegulationsareaccountedas Regulatory Deferral Account Balances. In respect of long term foreign currency loan drawn on or after 1stApril,2016,exchangedifferencetotheextentrecoverableasperCERCTariffRegulationsarerecognisedasRegulatoryDeferralAccountBalances.TheGroupexpectstorecovertheseamountsthroughdepreciationcomponentofthetariffoverthelifeoftheassetorasexchangeratevariationon repayment of the loan.
Thetariffnormsfortheblockperiod2014-2019notifiedbytheCentralElectricityRegulatoryCommission(CERC)provideforgrossingupofthereturnonequitybasedoneffectivetaxrateforthefinancialyearbasedontheactual taxpaidduringtheyearonthetransmission income. Accordingly, deferred tax provided during the year ended 31st March, 2019 on the transmission income is accounted as ‘Deferred Assets against Deferred Tax Liability’. Deferred Assets against Deferred Tax Liability for the yearwill bereversedinfutureyears(includingtaxholidayperiod)whentherelateddeferredtaxliabilityformsapartofcurrenttax.
Consolidated Financial Statements
324
Matterregardingpresentationof‘DeferredAssetsagainstDeferredTaxLiability’inBalanceSheetandStatementofProfitandlosswasreferredtoExpertAdvisoryCommittee(EAC)ofInstituteofCharteredAccountantofIndia,andasperopinionreceivedduringtheyear‘DeferredAssetsagainstDeferredTaxLiability’isclassifiedas‘RegulatoryDeferralAccountBalance”.
TheGrouphasrecognizedanamountof₹19.67crore(PreviousYear₹11.31crore)onaccountofpayrevisionasrecoverablefromthebeneficiariesinsubsequentperiodsunderRegulatoryDeferralAccountBalances.ThesebalancesaretobeadjustedintheyearinwhichtheybecomerecoverablefrombeneficiariesasperCERC.Amountofregulatorydeferralaccountbalancesisonundiscountedbasis.
iii) Riskassociatedwithfuturerecovery/reversalofregulatorydeferralaccountbalances (a) regulatory risk on account of changes in regulations. (b) other risks including currency or other market risks, if any. AnychangeintheTariffregulationsbeyondthecurrenttariffperiodendingon31st March, 2019 may have an impact on the recovery of Regulatory
Deferral Account Balances. TheRegulatoryDeferralAccountBalances(assets)recognizedinthebookstoberecoveredfromthebeneficiariesinfutureperiodsareasfollows:
55. Reclassification of Prior Year Presentation AsperopinionofEACreceivedduringtheyear‘DeferredAssetsagainstDeferredTaxLiability’isbeingclassifiedas‘RegulatoryDeferral
AccountBalance’whichwasearliershownasdeductionfrom‘DeferredTaxLiability’.Prioryearamountshavealsobeenreclassifiedforconsistency with the current year presentation in consonance with principles of Ind AS 1 ‘ Presentation of Financial Statements’. In view ofabovereclassificationinBalanceSheet,‘NetDeferredTaxLiability’hasincreasedby₹10989.39croresasat31stMarch2018and₹7868.20croresasat1stApril2017respectively.‘RegulatoryDeferralAccountBalances’hasalsoincreasedby₹10989.39croresasat31st March2018and₹7868.20croresasat1stApril2017respectively.InStatementofProfitandLossfortheyearended31stMarch2018‘DeferredTaxExpense’hasincreasedby₹3121.19croreswithacorrespondingincreasein‘NetMovementinRegulatoryDeferralAccountBalances’by₹3121.19crores.TaxonNetMovementinRegulatoryDeferralAccountBalancesandOtherComprehensiveIncomehasalsobeenreclassifiedfromCurrentTax.DuetoabovereclassificationreportedProfitafterTax(PAT)hasincreasefrom₹8198.31croreto₹8204.00croreandOtherComprehensiveIncomedecreasedfrom₹13.72croreto₹8.03crorefortheyearended31stMarch2018.HoweverthesereclassificationshavenoeffectonthereportedTotalComprehensiveIncomeandEquityofPreviousyears.AreconciliationofEquity,ProfitaftertaxandOtherComprehensiveIncomeisgivenbelow:
Reconciliationofequityasat31stMarch,2018and1st April, 2017
ReconciliationofProfitaftertaxfortheyearended31stMarch,2018
Particulars 31st March, 2019 31st March, 2018A. Opening Balance * 11304.22 7975.80B.Addition/(deduction)duringtheyear (3220.95) 3328.42C.Amountcollected/refundedduringtheyear NIL NILD.RegulatedIncome/(Expense)recognizedinthestatementofProfitandLoss (3220.95) 3328.42E. Closing Balance 8083.27 11304.22F.TaxonRegulatedIncome/(Expense)recognizedinthestatementofProfitandLoss (694.08) 44.23
Particulars 31st March, 2018 1st April 2017Totalequity(shareholder’sfunds)asperpreviousyearFinancialStatements 54425.99 49865.50Adjustments Nil NilTotalequityasperrestatedFinancialStatement 54425.99 49865.50
Particulars 31st March, 2018ProfitafterTaxasperpreviousyearFinancialStatements 8198.31AdjustmentsLess:IncreaseinDeferredTaxduetoreclassification 3121.19Add: Increase in Net Movement in Regulatory Deferral Account Balances 3121.19Less:TaxonNetMovementinRegulatoryDeferralAccountBalancestransferredfromCurrentTax 44.23Add:TransferredtoTaxonNetMovementinRegulatoryDeferralAccountBalancesfromCurrentTax 44.23Add:TransferredtoTaxonOtherComprehensiveIncomefromCurrentTax 5.69Total adjustments 5.69ProfitafterTaxasperrestatedFinancialStatement 8204.00
(` in Crore)
(` in Crore)
(` in Crore)
54. Disclosures relating to Regulatory Deferral Account Balances (Contd.)
* Refer note 55 for change in Opening balance for regulatory deferral account balances.
325
Reconciliation of Other Comprehensive Incomefor the year ended 31stMarch,2018
56. Disclosure as required by Clause 34 (3) of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015: A. Loans and Advances in nature of Loans: 1. To Joint Ventures
2.Tofirms/companiesinwhichdirectorsareinterested :NIL B. Investment by the loanee (as detailed above) in the shares of PowerGrid Corporation of India Ltd : NIL57. Corporate Social Responsibility Expenses (CSR) As per Section 135 of the Companies Act, 2013 along with Companies (Corporate Social Responsibility Policy) Rules, 2014 read with DPE
guidelinesnoF.No.15(13)/2013-DPE(GM),theGroupisrequiredtospend,ineveryfinancialyear,atleasttwopercentoftheaveragenetprofitsoftheGroupmadeduringthethreeimmediatelyfinancialyearsinaccordancewithitsCSRPolicy.Accordingly,theGrouphasspent₹196.28crore(PreviousYear₹157.99crore)onCSRactivities.
Particulars 31st March, 2018Other Comprehensive Income as per previous year Financial Statements 13.72AdjustmentsLess:TransferredtoTaxonOtherComprehensiveIncomefromCurrentTax 5.69Total adjustments (5.69)Other Comprehensive Income as per restated Financial Statement 8.03
(` in Crore)
(` in Crore)
Name of the Company Outstanding balance as at Maximum amount outstanding during
31st March, 2019
31st March, 2018
31st March, 2019
31st March, 2018
Joint VenturesNational High Power Test Laboratory Private Limited 6.00 6.00 6.00 6.00 Teestavalley Power Transmission Limited 77.12 - 77.12 -Total 83.12 6.00 83.12 6.00
55. Reclassification of Prior Year Presentation (Contd.)
Consolidated Financial Statements
326
58.
Addi
tiona
l Inf
orm
atio
n as
requ
ired
und
er S
ched
ule
III
of th
e Co
mpa
nies
Act
, 201
3 :
Part
icul
ars
Net
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et i.
e. a
sset
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inus
tota
l lia
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ies
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pro
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in O
ther
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preh
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ve I
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eSh
are
in T
otal
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preh
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ve I
ncom
e
31st M
arch
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931
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arch
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ala
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-
Pow
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7
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ited
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(` in
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327
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9
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r Grid
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7
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RINLPOW
ERGRIDTLTPvt.
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8211
.93
58.
Addi
tiona
l Inf
orm
atio
n as
req
uire
d un
der S
ched
ule
III
of th
e Co
mpa
nies
Act
, 201
3 : (
Cont
d.)
(` in
Cro
re)
Consolidated Financial Statements
328
59. Fair Value Measurements
* InvestmentinPTCLtd.beingalistedequityinstrumentisaLevel1fairvaluehierarchy. ** InvestmentinEnergyEfficiencyServicesLimitedisaLevel2fairvaluehierarchy. Thissectionexplainsthejudgementsandestimatesmadeindeterminingthefairvaluesofthefinancialinstrumentsthataremeasuredatamortised
costandforwhichfairvaluesaredisclosedinthefinancialstatements.Toprovideanindicationaboutthereliabilityoftheinputsusedindeterminingfairvalue,thecompanyhasclassifieditsfinancialinstrumentsintothethreelevelsprescribedundertheaccountingstandard.Anexplanationofeach level follows underneath the table.
Financial Instruments by category 31st March, 2019 31st March, 2018FVOCI Amortised cost FVOCI Amortised cost
Financial Assets InvestmentsEquityInstruments-PTCIndiaLimited (12000006sharesof₹10each)*
88.14 - 104.88 -
-EnergyEfficiencyServicesLimited(37704350 shares PY 22500000 shares of ₹10each)**
41.70 - 23.90 -
Trade Receivables - 4728.10 - 3640.02Loans - 319.12 - 186.87Cash&cashEquivalents - 3647.73 - 1534.80Bank Balance - 852.39 - 840.07Other Financial AssetsCurrent - 6881.04 - 4737.23Non-Current - 4384.90 - 680.50Total Financial assets 129.84 20813.28 128.78 11619.49Financial LiabilitiesBorrowings - 149788.58 - 134971.34Trade Payables - 365.13 - 240.44Other Financial LiabilitiesCurrent - 9200.61 - 11418.98Non-Current - 3994.53 - 459.60Total financial liabilities - 163348.85 - 147090.36
Assets and liabilities which are measured at amortised cost for which fair values are disclosed
Level 1 Level 2 Level 3 Total
At 31st March, 2019Financial AssetsLoansLoans to Joint Ventures - 83.48 - 83.48Loans to employees - 224.22 - 224.22Total Financial Assets - 307.70 - 307.70Financial LiabilitiesBorrowings - 147993.11 - 147993.11Deposits/retentionmoneyfromcontractors and others
- 4015.87 - 4015.87
Total financial liabilities - 152008.98 - 152008.98
(` in Crore)
(` in Crore)
329
Level1:Level1hierarchyincludesfinancialinstrumentsmeasuredusingquotedprices.Thisincludeslistedequitybondswhicharetradedinthestockexchanges,valuedusingtheclosingpriceasatthereportingperiod.
Level2:Thefairvalueoffinancialinstrumentsthatarenottradedinanactivemarket(forexample,tradedbonds)isdeterminedusingvaluationtechniqueswhichmaximisetheuseofobservablemarketdataandrelyaslittleaspossibleonentity-specificestimates.Ifallsignificantinputsrequiredtofairvalueaninstrumentareobservable,theinstrumentisincludedinlevel2.
Level3:Ifoneormoreofthesignificantinputsisnotbasedonobservablemarketdata,theinstrumentisincludedinlevel3.Thisisthecaseforunlistedequitysecurities,contingentconsiderationandindemnificationassetsincludedinlevel3.
There are no transfers between levels 1 and 2 during the year. The company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.
Valuationtechniqueusedtodeterminefairvalue Specificvaluationtechniquesusedtovaluefinancialinstrumentsinclude: • theuseofquotedmarketpricesordealerquotesforsimilarinstruments. • thefairvalueofEnergyEfficiencyServicesLimitedhasbeendeterminedbymakingqualitativeadjustmenttotradingmultiplessuchasP/E,
EV/EBITDAofcomparablelistedprices.ThesamehasbeenincludedinLevel2fairvaluehierarchy. • thefairvalueoftheremainingfinancialinstrumentsisdeterminedusingdiscountedcashflowanalysis. Alloftheresultingfairvalueestimatesareincludedinlevel2apartfromequityinstrumentsofPTCIndiaLimitedwhichisincludedinLevel1fair
value hierarchy. Fairvalueoffinancialinstrumentshasbeendeterminedbyanindependentvaluer. FairValueoffinancialassetsandliabilitiesmeasuredatamortisedcost.
Assets and liabilities which are measured at amortised cost for which fair values are disclosed
Level 1 Level 2 Level 3 Total
At 31st March, 2018Financial AssetsLoansLoans to Joint Ventures - 6.00 - 6.00 Loans to employees - 183.76 - 183.76Total Financial Assets - 189.76 - 189.76Financial LiabilitiesBorrowings - 140219.77 - 140219.77Deposits/retentionmoneyfromcontractors and others
- 419.04 - 419.04
Total financial liabilities - 140638.81 - 140638.81
Particulars 31st March, 2019 31st March, 2018Carrying Amount Fair value Carrying Amount Fair value
Financial AssetsLoansLoan to Joint Venture 83.12 83.48 6.00 6.00Loans to employees 235.99 224.22 180.87 183.76Total Financial Assets 319.11 307.70 186.87 189.76Financial LiabilitiesBorrowings 149788.58 147993.11 134971.34 140219.77Deposits/retentionmoneyfromcontractors and others
3994.53 4015.87 459.60 419.04
Total financial liabilities 153783.11 152008.98 135430.94 140638.81
(` in Crore)
(` in Crore)
59. Fair Value Measurements (Contd.)
Consolidated Financial Statements
330
Thecarryingamountsoftradereceivables,tradepayables,cashandcashequivalentsandothercurrentfinancialliabilitiesareconsideredtobethesameastheirfairvalues,duetotheirshort-termnature.
Forfinancialassetsthataremeasuredatfairvalue,thecarryingamountsareequaltothefairvalues.60. Related party Transactions (a) Joint Ventures
## POWERGRID & Teesta Urja Ltd are the Joint venture partners in Teestavalley Power Transmission Limited & holds 26% & 74%equity,respectivelyasperShareholdingagreement.OncallofadditionalequitybyTeestavalleyPowerTransmissionlimited,POWERGRIDcontributedtheirshareamountingRs11.28crorewhiletheotherJVpartnerhasnotyetcontributedtheirshareofmoneyason31.03.2019.Consequently,theholdingofPOWERGRIDincreasedto28.23%ason31.03.2019against26%providedin shareholding agreement.
###POWERGRID’sBoardofDirectorsinitsmeetingheldon16thaugust2017accordedapprovalforinitiatingprocedureforwindingup/removalofthenameofKalingaBidyutPrasaranNigamPrivateLtdunderfasttrackExitmodeofRegistrarofCompanies(ROC).
####POWERGRID’sBoardofDirectorsinitsmeetingheldon1stMay2018accordedinprincipleapprovaltocloseRINLPowergridTLTPrivate Limited and seek consent of other JV Partner Rashtriya Ispat Nigam Limited. Accordingly Provision for diminution in value of investment has been made.
(b) Key Managerial Personnel
Whole Time DirectorsName DesignationShri I.S. Jha ChairmanandManagingDirector(CMD)ceasedtobeChairman&ManagingDirectorw.e.f
21.01.2019Shri Ravi P. Singh Director(Personnel)&AdditionalChargeofChairman&ManagingDirectorw.e.f21.01.2019
to 20.04.2019Shri K. Sreekant Director (Finance) Ms. Seema Gupta Director (Operations) Shri. Prabhakar Singh Director(Projects)retiredon30.06.2018Shri Rajeev Kumar Chauhan Director(Projects)w.e.f23.08.2018
Name DesignationShri Jagdish Ishwar Bhai Patel Independent DirectorShri Tse Ten Dorji Independent DirectorShri Manoj Kumar Mittal Independent Director Shri Sunil Kumar Sharma IndependentDirectorw.e.f23.07.2018Smt. A.R. Mahalakshmi IndependentDirectorw.e.f26.07.2018
Name of entity Place of business/country of
incorporation
Proportion of Ownership Interest31st March, 2019 31st March, 2018
Powerlinks Transmission Limited India 49% 49%Torrent Power Grid Limited India 26% 26%Jaypee Powergrid Limited India 26% 26%Parbati Koldam Transmission Company Limited India 26% 26%TeestavalleyPowerTransmissionLimited## India 28.23% 26%North East Transmission Company Limited India 26% 26%National High Power Test Laboratory Private Limited India 20% 20%Bihar Grid Company Limited India 50% 50%KalingaBidyutPrasaranNigamPrivateLimited### India 50% 50%Cross Border Power Transmission Company Limited India 26% 26%RINLPowergridTLTPrivateLimited#### India 50% 50%Power Transmission Company Nepal Ltd Nepal 26% 26%
Independent Directors
59. Fair Value Measurements (Contd.)
331
Name DesignationMs. Bharati Government Nominee Director ceased to be Director w.e.f 13.02.2019Shri Vivek Kumar Dewangan GovernmentNomineeDirectorw.e.f26.04.2018Shri Ghanshyam Prasad Government Nominee Director w.e.f 01.03.2019 Smt. Divya Tandon Company Secretary
Name of Entity Place of business/country of incorporation
Nature of Relationship
Powergrid Employees P.F. Trust India Post-employmentbenefitplanofPowergridPowergrid Self Contributory Superannuation Benefit(Pension) Fund Trust
India Post-employmentbenefitplanofPowergrid
Powergrid Employees Gratuity Fund Trust India Post-employmentbenefitplanofPowergridPowergird Employees Post-Retirement Medical BenefitTrust*
India PostRetirementBenefitplanofPowergrid
Government Nominee Directors
60. Related party Transactions (Contd.)
(c) List of Other Related Parties
*Trust registered on 1stMay2018. (d) Government Related Entities The company is controlled by the Government of India (GOI), being a Central Public Sector Enterprise (CPSE) under the Ministry of
Power,withGOIholding55.37%ofequitysharescapitalissuedandpaidup(previousyear56.91%). TheCompanyhasbusinesstransactionswithotherentitiescontrolledbytheGOIforprocurementofcapitalequipment,sparesand
services.Transactionswiththeseentitiesarecarriedoutatmarkettermsonarms-lengthbasisthroughatransparentpricediscoveryprocessagainstopentenders,exceptinafewcasesofprocurementofspares/servicesfromOriginalEquipmentManufacturer(OEM)forproprietaryitems/oronsingletenderbasisduetourgency,compatibilityorotherreasons.Suchsingletenderprocurementsarealsodonethroughaprocessofnegotiationwithpricesbenchmarkedagainstavailablepricedataofsame/similaritems.
Theabovetransactionsareinthecourseofnormalday-to-daybusinessoperationsandarenotconsideredtobesignificantkeepingin view the size, either individually or collectively.
(e) Outstanding balances arising from sales/purchases of goods and services The following balances are outstanding at the end of the reporting period in relation to transactions with related parties:
Particulars 31st March, 2019 31st March, 2018Advances /Amount Payables Joint VenturesCross Border Power Transmission Company Limited 10.14 11.12Teestavalley Power Transmission Limited 35.32 30.92North East Transmission Company Limited 7.96 7.86Powerlinks Transmission Limited 2.72 2.01Bihar Grid Company Limited 1.52 -Total payables to related parties 57.66 51.91
Particulars 31st March, 2019 31st March, 2018Amount Receivables Joint VenturesParbati Koldam Transmission Company Limited 0.38 0.38National High Power Test Laboratory Private Limited 34.02 10.99Bihar Grid Company Limited - 7.50Power Transmission Company Nepal Limited 3.10 1.43Jaypee Powergrid Limited 0.02 0.02Torrent Powergrid Limited 0.01 0.41Total 37.53 20.73
(` in Crore)
(` in Crore)
Consolidated Financial Statements
332
Particulars 31st March, 2019 31st March, 2018Loans to Joint VenturesNational High Power Test Laboratory Private Limited 6.00 6.00Teestavalley Power Transmission Limited 77.12 -Total 83.12 6.00Interest Accrued on loan to Joint VenturesNational High Power Test Laboratory Private Limited - 0.01Teestavalley Power Transmission Limited 1.62 -Total 1.62 0.01Loans to Key Managerial Personnel 0.18 0.11
Other Related Parties 31st March, 2019 31st March, 2018Outstanding balances with Employees Benefit TrustPowergrid Employees Gratuity Fund Trust Nil 109.59Total Nil 109.59
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Services provided by the CompanyConsultancy IncomeJoint VenturesNational High Power Test Laboratory Private Limited 0.54 -Jaypee Powergrid Limited 1.12 1.01Cross Border Power Transmission Company Limited 2.05 1.60Bihar Grid Company Limited 16.26 13.84Parbati Koldam Transmission Company Limited 0.01 0.05Teestavalley Power Transmission Limited 5.80 0.17North East Transmission Company Limited 5.22 6.53Torrent Powergrid Ltd 1.37 2.85Power Transmission Company Nepal Limited 1.66 -Total 34.03 26.05Interest on LoanJoint VenturesNational High Power Test Laboratory Private Limited 0.60 0.01Teestavalley Power Transmission Limited 1.80 -Total 2.40 0.01Investments made during the year (Equity)Joint VenturesTeestavalley Power Transmission Limited 11.28 -Bihar Grid Company Limited 15.45 7.74RINL Powergrid TLT Pvt. Ltd 0.60 -Power Transmission Company Nepal Limited - 1.62Total 27.33 9.36Other Related PartiesContribution made during the yearPowergrid Employees P.F. Trust 131.04 93.07PowergridSelfContributorySuperannuationBenefit(Pension)FundTrust 102.41 108.67Powergrid Employees Gratuity Fund Trust 29.56 4.05Total 263.01 205.79Recovery for Deputation of EmployeesJoint VenturesJaypee Powergrid Limited 0.48 0.17Cross Border Power Transmission Company Limited 1.22 0.82North East Transmission Company Limited 0.13 0.11Teestavalley Power Transmission Limited 0.21 -Total 2.04 1.10
(` in Crore)
(` in Crore)
(` in Crore)
(f) Transactions with related parties The following transactions occurred with related parties:
60. Related party Transactions (Contd.)
333
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
Joint VenturesParbati Koldam Transmission Company Limited 155.75 178.83Torrent Power Grid Limited 46.91 46.46Powerlinks Transmission Limited 207.79 172.79Jaypee Powergrid Limited 180.92 192.86North East Transmission Company Limited 341.86 357.06Teestavalley Power Transmission Limited 32.23 30.27Total 965.46 978.27
Particulars For the year ended 31st March, 2019
For the year ended 31st March, 2018
ShortTermEmployeeBenefits 5.16 2.78Post-EmploymentBenefits 0.19 0.54LongTermEmployeeBenefits 0.44 0.17Arrears to KMPs 0.72 -Total 6.51 3.49
(` in Crore)
(` in Crore)
Terms and ConditionsThe loans to key management personnel are on the same terms and conditions as applicable to all other employeesAll other transactions were made on normal commercial terms and conditions and at market rates. All outstanding balances are unsecured and are repayable in cash.Loans to Subsidiaries are given on cost to cost basis.g) Transaction in the capacity of Central Transmission Utility (CTU) with the related parties
Inadditiontotheaboveremuneration,thewholetimedirectorshavebeenallowedtousethestaffcar(includingforprivatejourneys)onpaymentof₹2000/-p.m.ascontained intheDepartmentofPublicEnterprises(DPE)OMNo.2(23)/11-DPE(WC)-GL-V/13dated21/01/2013.
61. Operating Segmentsa) Business Segment The Board of Directors is the Group’s Chief Operating Decision Maker(CODM)who monitors the operating results of its business
segments separately for the purpose of making decisions about resource allocation and performance assessment. Three reportable segmentshavebeenidentifiedonthebasisofservicesprovided.
• Transmission Services--Group’sprincipalbusinessistransmissionofbulkpoweracrossdifferentstatesofIndia.• Telecom Services-- The company Utilizes the spare Optical fibres available in the Optical Ground Wire (OPGW) laid on the
transmission network for providing telecom services. It operates as a neutral carrier in the point to point bandwidth leasing business.• Consultancy Services--providesConsultancyServices intheTransmission,DistributionandTelecomsectors, includingPlanning
Design,Engineering,LoadDispatch,OPGWonintrastateTransmissionnetwork,ProcurementManagement,Operation&Maintenance,Financing and Project Management.
b) The operations of the group are mainly carried out within the country and therefore there is no reportable geographical segmentc) Informationaboutmajorcustomer:Revenuefromanysinglecustomerisnotequaltoorexceeds10%ofthegroup’stotalrevenue.Segment Revenue and ExpensesRevenuedirectlyattributable to thesegments isconsideredasSegmentRevenue.Expensesdirectlyattributable to thesegmentsandcommonexpensesallocatedonareasonablebasisareconsideredassegmentexpenses.RevenuefromexternalcustomerinIndiais₹35610.81crore(PreviousYear₹30445.65crore)andoutsideIndiais₹40.83crore(PreviousYear₹29.96crore).Segment Assets and LiabilitiesSegment assets include all operating assets comprising of Property, Plant and Equipment, current assets and loan and advances.Construction,Work-in-progress,constructionstoresandadvancesandinvestmentsareincludedinunallocatedassets.Segmentfacilitiesinclude operating liabilities and provisions.
h) Remuneration to Key Managerial Personnel
60. Related party Transactions (Contd.)
Consolidated Financial Statements
334
Part
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ars
Tran
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Ser
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m S
ervi
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Tota
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1st
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As a
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As a
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As a
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8
Reve
nue:
Reve
nue
from
Ope
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ns
(inclu
ding
allo
cabl
e ot
her
inco
me)
34,
476.
70
29,
197.
02
506
.74
668.38
668
.20
610
.21
- -
35,
651.
64
30,
475.
61
Inte
r Seg
men
t Rev
enue
73.
88
68.20
(73
.88)
(68.20)
- -
Net R
even
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om
Oper
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ns 3
4,47
6.70
2
9,19
7.02
5
06.7
4 668.38
742
.08
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(73
.88)
(68.20)
35,
651.
64
30,
475.
61
Segm
ent r
esul
ts 1
6,25
8.46
19,819.27
295
.65
431.68
393
.90
314
.41
16,
948.
01
20,
565.
36
UnallocatedInterestand
Othe
r Inc
ome
112
.83
125.82
UnallocatedFinanceCosts
8,7
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,324
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ProfitbeforeTax(Including
mov
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t in
Regu
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Defe
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7 1
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128
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147
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ProfitbeforeTax
8,4
53.0
9 13,514.98
ProvisionforTaxes
(1,
580.
43)
5,310.98
ProfitafterTax
10,
033.
52
8,204.00
Oth
er in
form
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2,0
0,01
7.90
1,78,886.86
2,5
86.5
5 1
,993
.02
999
.71
919
.34
2,0
3,60
4.16
1,81,799.22
UnallocatedAssets
43,
753.
43
43,516.83
Tota
l Ass
ets
2,4
7,35
7.59
2,
25,3
16.0
5 Se
gmen
t Lia
bilit
ies:
13,
098.
54
8,668.68
3,3
57.6
4 2
,395
.04
660
.41
541
.17
17,
116.
59
11,604.89
UnallocatedOther
Liab
ilitie
s (in
cludi
ng lo
ans)
1,7
1,15
2.61
1,59,285.17
Tota
l lia
bilit
ies
1,8
8,26
9.20
1,
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6 De
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,446
.55
9,1
31.4
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10,
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95
9,2
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9
Non-cashexpenditure
othe
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4.96
4
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61.
34
CapitalExpenditure
27,
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83
21,687.20
4.9
9 1
.16
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39
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06
61. O
pera
ting
Segm
ents
(Co
ntd.
)(`
in C
rore
)
335
Particulars As at 31st March, 2019 As at 31st March, 2018Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountand not provided for (net of advances)
14131.67 29372.73
Group’s commitment towards further investment join venture entities 201.22 231.72
(` in Crore)62. Capital and other Commitments
63. Contingent Liabilities and contingent assets Contingent Liabilities
1. Claims against the Group not acknowledged as debts in respect of:(i) Capital Works Someofthecontractorsforsupplyandinstallationofequipmentsandexecutionofworksatourprojectshavelodgedclaimsonthe
groupseekingenhancementofthecontractprice,revisionofworkschedulewithpriceescalation,compensationfortheextendedperiod of work, idle charges etc. These claims are being contested by the Group as being not admissible in terms of the provisions of the respective contracts.
The group is pursuing various options under the dispute resolution mechanism available in the contract for settlement of these claims. Insuchcases,contingentliabilityof₹2,838.55crore(PreviousYear₹1440.68crore)hasbeenestimated.
(ii) Land compensation cases Inrespectoflandacquiredfortheprojects,thelandlosershaveclaimedhighercompensationbeforevariousauthorities/courtswhich
areyettobesettled.Insuchcases,contingentliabilityof₹1792.19crore(PreviousYear₹2491.49crore)hasbeenestimated.(iii) Other claims InrespectofclaimsmadebyvariousState/CentralGovernmentDepartments/Authoritiestowardsbuildingpermissionfees,penalty
ondiversionofagriculturelandtonon-agricultureuse,Nalatax,waterroyaltyetc.andbyothers,contingentliabilityof₹27.04crore(PreviousYear₹4.12crore)hasbeenestimated.
(iv) Disputed Income Tax/Sales Tax/Excise/Municipal Tax Matters DisputedIncomeTax/SalesTax/Excise/MunicipalTaxMattersamountingto₹485.33crore(PreviousYear₹442.27crore)arebeing
contested before various Appellate Authorities. Many of these matters have been disposed of in favour of the group but are disputed beforehigherauthoritiesbytheconcerneddepartments.Againsttotalclaimof₹172.83crore(PreviousYear₹80.12crore),provisionof₹138.39crore(PreviousYear₹71.44crore)ismadeandbalanceof₹34.44crore(PreviousYear₹8.68crore)isshownascontingent liability.
v) Others a)Othercontingentliabilitiesamountsto₹717.62crore(PreviousYear₹405.16crore)whichincludesclaimof₹461.50Crore(Previous
Year₹221.81crore)relatedtoArbitrationcases/Rowcases. b)SomeofthebeneficiarieshavefiledappealsagainstthetariffordersoftheCERC.Theamountofcontingentliabilityinthisregard
is not ascertainable. c)UndertheTransmissionServiceAgreement(TSA)withPowerlinksTransmissionLtd,thegrouphasanobligationtopurchasetheJV
company (Powerlinks Transmission Ltd) at a buyout price determined in accordance with the TSA. Such an obligation may result in caseJVcompany(PowerlinksTransmissionLtd)servesaterminationnoticeeitheron“POWERGRIDeventofdefault”oron“forcemajeure event” prescribed under TSA. No contingent liability on this account has been considered as the same is not ascertainable.
64. Capital managementa) Risk ManagementThe group’s objectives when managing capital are to •maximizetheshareholdervalue;•safeguarditsabilitytocontinueasagoingconcern;•maintainanoptimalcapitalstructuretoreducethecostofcapital.Forthepurposeofthegroup’scapitalmanagement,equitycapitalincludesissuedequitycapital,securitiespremiumAccountandallotherequityreservesattributabletotheequityholdersofthegroup.Thegroupmanagesitscapitalstructureandmakesadjustmentsinlightofchanges ineconomicconditions, regulatory frameworkandrequirementsoffinancialcovenantswith lenders.Tomaintainoradjustthe capital structure, the group may adjust the dividend payment to shareholders, regulate investments in new projects, return capital toshareholdersorissuenewshares.Thegroupmonitorscapitalusingdebt-equityratio,whichistheratiooflongtermdebttototalnetworth.Thepolicyistokeepthedebt-equityratiowhereinthedebtislessthan75%oftotalcapitalemployed(i.e.debttoequityratiolessthan 75:25). The group includes within long term debt, interest bearing loans and borrowings and current maturities of long term debt. Thedebt–equityratiooftheGroupwasasfollows:-
Particulars 31st March, 2019 31st March, 2018Longtermdebt(₹incrore) 142076.36 130502.96Equity(₹incrore) 59088.39 54425.99LongtermdebttoEquityratio 71:29 71:29
Consolidated Financial Statements
336
(a) Basic and diluted earnings per share attributable to the equity holders of the group
31st March, 2019 31st March, 2018
Including movement in Regulatory deferral balances 19.18 15.68#ExcludingmovementinRegulatorydeferralbalances* 24.01 9.40#Total basic and diluted earnings per share attributable to the equity holders of the group
19.18 15.68
(b) Reconciliation of earnings used as numerator in calculating earnings per share
31st March, 2019 31st March, 2018
EarningsattributabletotheequityholdersofthegroupincludingmovementinRegulatory deferral balances
10033.52 8204.00
EarningsattributabletotheequityholdersofthegroupexcludingmovementinRegulatory deferral balances
12560.39 4919.81
Total Earnings attributable to the equity holders of the group 10033.52 8204.00
(c) Weighted average number of shares used as the denominator 31st March, 2019No. of shares
31st March, 2018No. of Shares
Weightedaveragenumberofequitysharesusedasthedenominatorincalculatingbasic earnings per share
5231589648 5231589648
Adjustments for calculation of diluted earnings per share - -Total weighted average number of equity shares used as the denominator in calculating basic earnings per share
5231589648 5231589648
(` in Crore)
Underthetermsofthemajorborrowingfacilities,thegroupisrequiredtocomplywiththefinancialcovenants.Breachesinmeetingthefinancialcovenantswouldpermit the lenders to immediatelycall loansandborrowings.Therehavebeennobreaches in thefinancialcovenantsofanyinterest-bearingloansandborrowinginthecurrentreportingperiod.No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March, 2019 and 31st March,2018.b) Dividends
Particulars 31st March, 2019 31st March, 2018(i) Equity sharesFinal dividend for the year ended 31stMarch,2018of₹2.80(31st March, 2017–₹3.35)perfullypaidshare
1464.85 1752.59
Interim dividend for the year ended 31stMarch,2019of₹5.83(31st March, 2018–₹2.45)perfullypaidshare
3050.02 1281.74
Dividend not recognized at the end of the reporting period In addition to above dividend, the Board of Directors on 29thMay,2019recommendedthepaymentofafinaldividendof₹2.50perfullypaidequityshare.ThisproposeddividendissubjecttotheapprovalofshareholdersintheensuingAnnualgeneralmeeting.
65. Earnings per share
(` in Crore)
( Amount in `)
*RestatedinthecurrentyearconsequenttorecognitionofMinimumAlternateTaxCreditindeferredtaxassetsduringtheyear.Refernoteno 26 ( c) and (d) #Refernoteno55forreclassification
66. Financial Risk Management TheGroup’sprincipalfinancialliabilitiescompriseloansandborrowingsdenominatedinIndianrupeesorforeigncurrencies,tradepayables
andotherpayables.TheGrouphasalsoprovidedfinancialguaranteeinrespectofbondsissuedbyitswhollyownedsubsidiary,PowergridVizagTransmissionLimited.ThemainpurposeofthesefinancialliabilitiesistofinancetheGroup’scapitalinvestmentsandoperations.
TheGroup’sprincipalfinancialassetsincludeloansandadvances,tradeandotherreceivables,andcashandcashequivalentsthataregenerated from its operations.
TheGroup’sactivitiesexposeittothefollowingfinancialrisks,namely, a) Credit risk, b) Liquidityrisk, c) Market risk. Thisnotepresentsinformationregardingthegroup’sexposure,objectives,policiesandprocessesformeasuringandmanagingtheserisks. Risk management framework The Group has a duly constituted Risk Management Committee headed by Director (Projects) with Director (Finance) and Director
(Personnel) as members. For the purpose of evaluating and managing the uncertainties the enterprise faces, Enterprise Risk Management
64. Capital management (Contd.)
337
framework has been implemented in theGroup. The framework is a structured, consistent and continuous process for identification,assessment,monitoringandmanagementofrisks.Asperthisframework,thesignificantbusinessprocesses/risksaremonitoredandcontrolled through various Key Performance Indicators (KPIs). The Committee meets at regular intervals and reviews KPIs and provides updatestotheAuditCommittee/Board.
ThemanagementoffinancialrisksbytheGroupissummarizedbelow:- A) Credit Risk Creditriskistheriskthatcounterpartywillnotmeetitsobligationsunderafinancialinstrumentorcustomercontract,leadingtoa
financialloss.TheGroupisexposedtocreditriskfromitsoperatingactivitiesonaccountoftradereceivablesandloansandadvancesandfromitsfinancingactivitiesduetodepositswithbanksandfinancialinstitutions,foreignexchangetransactionsandotherfinancialinstruments.
Adefaultonafinancialassetiswhenthecounterpartyfailstomakecontractualpaymentswithin3yearsofwhentheyfalldue.Thisdefinitionofdefault isdeterminedconsideringthebusinessenvironment inwhichtheGroupoperatesandothermacro-economicfactors.
Assetsarewritten-offwhenthereisnoreasonableexpectationofrecovery,suchasadebtordeclaringbankruptcyorfailingtoengageinarepaymentplanwiththeGroup.Whereloansorreceivableshavebeenwrittenoff,theGroupcontinuestoengageinenforcementactivitytoattempttorecoverthereceivabledue.Wheresuchrecoveriesaremade,thesearerecognizedinthestatementofprofitandloss.
(i) Trade Receivables TheGroup primarily provides transmission facilities to inter-state transmission service customers (DICs) comprisingmainly state
utilities owned by State Governments. The Group has a robust payment security mechanism in the form of Letters of Credit (LC) backedbytheTri-PartiteAgreements(TPA).TheTPAwassignedamongtheGOI,ReserveBankofIndiaandtheindividualStateGovernmentssubsequenttotheissuanceoftheOneTimeSettlementSchemeofStateElectricityBoardsduesduring2001-02bytheGOI,whichwasvalidtillOctober2016.GOIhasapprovedtheextensionoftheseTPAsforafurtherperiodof10years.MajorityoftheStateshaveexecutedtheagreementsforextensionofTPAsandmatterisbeingpursuedwiththeremainingstates.
AspertheprovisionsoftheTPA,thecustomersarerequiredtoestablishLCcovering105%oftheaveragemonthlybillingoftheGroupforlast12months.TheTPAalsoprovidesthatifthereisanydefaultinpaymentofcurrentduesbyanyStateUtility,theoutstandingduescanbedeductedfromtheState’sRBIaccountandpaidtotheconcernedCPSU.ThereisalsoprovisionforregulationofpowerbytheGroupincaseofnon-paymentofduesandnon-establishmentofLC.
CERCtariffregulationsallowpaymentagainstmonthlybillstowardstransmissionchargeswithinaperiodof60daysfromthedateof the bill and levy of surcharge on delayed payment beyond 60 days. A graded rebate is provided by the Group for payments made within 60 days.
Tradereceivablesconsistofreceivablesrelatingtotransmissionservicesof₹4679.86crore(PreviousYear₹3309.41crore),receivablesrelating to consultancy services of ₹148.02 crore (Previous Year ₹202.81 crore) and receivables relating to telecom business of₹239.58crore(PreviousYear₹175.95crore).
(ii) Other Financial Assets (excluding trade receivables) • Cash and cash equivalents TheGroupheldcashandcashequivalentsof₹382.33crore(PreviousYear₹521.07crore).Thecashandcashequivalentsareheld
withpublicsectorbanksandhighratedprivatesectorbanksanddonothaveanysignificantcreditrisk. •Deposits with banks and financial institutions TheGrouphelddepositswithbanksandfinancialinstitutionsof₹4117.79crore(PreviousYear₹1853.80crore).Termdepositsare
placed with public sector banks and have negligible credit risk. • Loans The Group has given loans to employees, subsidiaries and other parties. House building loans and conveyance advance to the
employees are secured against the mortgage of the house properties or hypothecation of vehicles for which such loans have been giveninlinewiththepoliciesoftheGroup.TheloansprovidedtogroupcompaniesareforprojectsunderTariffBasedCompetitiveBidding route. The risk of default in respect of these loans is considered negligible.
o Exposure to credit risk
Particulars 31st March, 2019 31st March, 2018Financial assets for which loss allowance is measured using 12 months Expected Credit Losses (ECL)Non-CurrentLoans 188.13 139.99Othernon-currentfinancialassets 4,384.90 680.50Cashandcashequivalents 382.33 521.07Depositswithbanksandfinancialinstitutions 4,117.79 1853.80Current loans 130.99 46.88Othercurrentfinancialassets 6,881.04 4737.23Total 16,085.18 7979.47Financial assets for which loss allowance is measured using Life time Expected Credit Losses (ECL)Trade receivables 5067.46 3688.17
(` in Crore)
66. Financial Risk Management (Contd.)
Consolidated Financial Statements
338
o Provision for expected credit losses (a) Financial assets for which loss allowance is measured using 12 month expected credit losses TheGrouphasassetswherethecounter-partieshavesufficientcapacitytomeettheobligationsandwheretheriskofdefaultisvery
low.Atinitialrecognition,financialassets(excludingtradereceivables)areconsideredashavingnegligiblecreditriskandtheriskhasnotincreasedfrominitialrecognition.Thereforeexpectedcreditlossprovisionisnotrequired.
(b) Financial assets for which loss allowance is measured using life time expected credit losses In respect of trade receivables from Telecom and Consultancy, customer credit risk is managed by regular monitoring of the outstanding
receivablesandfollow-upwiththeconsumerforrealization. Withregardtotransmissionsegment,theGrouphascustomersmostofwhomarestategovernmentutilitieswithcapacitytomeet
the obligations and therefore the risk of default is negligible. Further, management believes that the unimpaired amounts that are 30 days past due date are still collectible in full, based on the payment security mechanism in place and historical payment behavior.
Considering the above factors and the prevalent regulations, the trade receivables continue to have a negligible credit risk on initial recognition and thereafter on each reporting date.
(c) Ageing analysis of trade receivables The ageing analysis of the trade receivables is as below:
(d) Reconciliation of impairment loss provisions Themovementintheallowanceforimpairmentinrespectoffinancialassetsduringtheyearwasasfollows:
Based on historic default rates, the Group believes that, apart from the above, no impairment allowance is necessary in respect of any other assetsastheamountsareinsignificant.
B) Liquidity risk Liquidityriskmanagementimpliesmaintainingsufficientcashandmarketablesecuritiesandtheavailabilityoffundingthroughanadequate
amountofcommittedcreditfacilitiestomeetobligationswhendue.TheGroupmonitorsitsriskofashortageoffundsusingaliquidityplanning tool. The Group has access to a variety of sources of funding such as commercial paper, bank loans, bonds and externalcommercialborrowingsandretainsflexibilityinfundingbymaintainingavailabilityundercommittedcreditlines.
ManagementmonitorsrollingforecastsoftheGroup’sliquiditypositioncomprisingtheundrawnborrowingfacilitiesbelowandcashandcashequivalentsonthebasisofexpectedcashflows.
TheGroupdependsonbothinternalandexternalsourcesofliquiditytoprovideworkingcapitalandtofundcapitalexpenditure. i) Financial Arrangement The Group had access to the following undrawn borrowing facilities at the end of the reporting period.
Ageing Not due 0-30 days past due
31-60 days past
due
61-90 days past
due
91-120 days
past due
More than120 dayspast due
Total
Gross carrying amount as on 31st March, 2019
22.94 1559.96 1279.83 833.01 136.30 1235.42 5067.46
Gross carrying amount as on 31st March,2018
6.56 1468.86 834.14 278.94 173.46 926.21 3688.17
Particulars Trade receivables
Investments Loans Advances Unbilled Debtors
Total
Balance as at 31st March, 2017 32.41 - - 0.86 - 33.27Impairment loss recognized 15.74 - - - 18.92 34.66Amountswrittenoff - - - 0.86 - 0.86Balance as at 31st March, 2018 48.15 - - - 18.92 67.07Impairment loss recognized 291.21 3.97 - - 105.71 400.89Amountswrittenoff - - - - - -Balance as at 31st March, 2019 339.36 3.97 - - 124.63 467.96
Particulars 31st March, 2019 31st March, 2018Expiringwithin1year(bankoverdraftandotherfacilities) 582.13 1676.50Expiringbeyondoneyear(bankloans) 12153.70 15002.74
(` in Crore)
(` in Crore)
(` in Crore)
66. Financial Risk Management (Contd.)
339
The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time and have remaining availability period of 1 to 5 years (Previous Year 1 to 5 years).
ii) Maturities of financial liabilities ThetablebelowanalysestheGroups’sfinancialliabilitiesintorelevantmaturitygroupingsbasedontheircontractualmaturitiesforallnon-
derivativefinancialliabilities. Theamountdisclosedinthetableisthecontractualundiscountedcashflows.
C) Market risk Marketriskistheriskthatthefairvalueoffuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketprices.
Market risk comprises three types of risk: i. Currency risk ii. Interest rate risk iii. Otherpricerisk,suchasequitypriceriskandcommodityrisk. i) Currency risk TheGroupisexposedtocurrencyriskmainlyinrespectofforeigncurrencydenominatedloansandborrowingsandprocurementof
goodsandserviceswhosepurchaseconsiderationisdenominatedinforeigncurrency.TransmissiontariffareregulatedbytheCERC.AccordingtotheCERCtariffregulationsfortheblock2014-19theGroupmayhedgeforeignexchangeexposureinrespectoftheinterestonforeigncurrencyloanandrepaymentofforeignloanacquiredforthetransmissionsystem,inpartorfullinitsdiscretionandrecoverthecostofhedgingofforeignexchangeratevariationcorrespondingtothenormativeforeigndebt,intherelevantyear.
Ifhedgingoftheforeignexchangeexposureisnotundertaken,theextrarupeeliabilitytowardsinterestpaymentandloanrepaymentcorresponding to the normative foreign currency loan in the relevant year is permissible to be recovered as part of transmission tariffprovideditisnotattributabletothegeneratingGrouporthetransmissionlicenseeoritssuppliersorcontractors.Duringthecurrentfinancialyear,nohedgingforforeignexchangeexposurehasbeenundertakenbytheGroup.InrespectofgoodsandservicesprocuredforCapitalInvestment,theexchangeratevariationispartoftheprojectcost,fordeterminationoftransmissiontariff.Thecurrencyriskinrespectofgoodsandservicesprocuredforoperationactivitiesisnotsignificant.
TheGroup’sexposuretoforeigncurrencyriskattheendofthereportingperiodexpressedinINRisprovidedinNoteNo.53. Sensitivity SincetheimpactofstrengtheningorweakeningofIndianrupeeagainstUSD,Euro,JPYandothercurrenciesonthestatementofprofit
andlosswouldnotbeverysignificant;therefore,sensitivityanalysisforcurrencyriskisnotdisclosed. ii) Interest rate risk TheGroupisexposedtointerestrateriskarisingmainlyfromlongtermborrowingswithfloatinginterestrates.TheGroupisexposed
to interest rate riskbecause thecashflowsassociatedwithfloatingrateborrowingswillfluctuatewithchanges in interest rates.TheGroupmanagestheinterestraterisksbymaintainingadebtportfoliocomprisingamixoffixedandfloatingrateborrowingsindomestic and foreign currencies.
Atthereportingdate,theinterestrateprofileoftheGroup’svariableinterestrate-bearingfinancialinstrumentsisasfollows:
Contractual maturities of financial liabilities Within a year Between 1-5 years Beyond 5 years Total 31st March,2019Borrowings(includinginterestoutflows) 24759.31 77525.85 108167.14 210452.30Trade payables 365.13 365.13Otherfinancialliabilities 9487.98 1656.51 4924.35 16068.84Total 34612.42 79182.36 113091.49 226886.2731st March, 2018Borrowings(includinginterestoutflows) 17598.89 73984.51 99822.32 191405.72Trade payables 240.44 - - 240.44Otherfinancialliabilities 11418.98 459.60 - 11878.58Total 29258.31 74444.11 99822.32 203524.74
Particulars 31st March, 2019 31st March, 2018Long Term Debt with floating rate of interest-Domestic 26190.00 17532.00-Foreign 33427.30 27771.63Sub Total 59617.30 45303.63Long Term Debt with fixed rate of interest-Domestic 74778.86 77986.21-Foreign 7680.20 7213.12Sub Total 82459.06 85199.33Total Long Term Debt 142076.36 130502.96% of Floating Interest Rate Debt to Total Long Term Debt 41.96% 34.71%
(` in Crore)
(` in Crore)
66. Financial Risk Management (Contd.)
Consolidated Financial Statements
340
Fair value sensitivity analysis for interest-rate risk AsperCERCRegulations,interestonloanduringconstructionformspartofprojectcostforthepurposeoftariffandafterthedateof
commercialoperation,interestonloansisrecoverablethroughtariffcalculatedonthenormativeaverageloanoftheyearbyapplyingtheweighted average rate of interest of the actual loan portfolio.
Accordingly,theGroup’sinterestrateriskisnotconsideredsignificant;hencesensitivityanalysisfortheriskisnotdisclosed. iii) Other price risk TheGroup’sexposuretoequitysecuritiespriceriskarisesfrominvestmentsheldbytheGroupandclassifiedinthebalancesheetasfair
value through OCI. Consideringthemagnitudeofequityinvestments,nosignificantriskisexpectedtoarise.67. Income Tax expense Thisnoteprovidesananalysisof thegroup’s income taxexpense, andhow the taxexpense is affectedbynon-assessableandnon-
deductibleitems.ItalsoexplainssignificantestimatesmadeinrelationtotheGroup’staxposition. (a) Income tax expense
*Thisincludestaxonregulatorydeferralbalanceaccountforthelastyear. (b) Income Tax recognized in Regulatory Deferral Account Balances:
(c) Income Tax recognized in other comprehensive income:
Particulars 31st March, 2019 31st March, 2018CurrentTaxCurrenttaxonprofitsfortheyear 2568.02 2182.64Adjustmentsforcurrenttaxofpriorperiods* - 15.34Pertaining to regulatory deferral account balances (A) (694.08) 44.23Total current tax expense (B) 1873.94 2242.21DeferredTaxexpenseOriginationandreversaloftemporarydifferences 752.51 3068.77PreviouslyunrecognizedtaxcreditrecognizedasDeferredTaxAssetthisyear (4206.88) -Total deferred tax expense /benefit (C) (3454.37) 3068.77Income tax expense (B+C-A) (886.35) 5266.75Pertaining to regulatory deferral account balances (694.08) 44.23Total tax expense including tax on movement in regulatory deferral account balances
(1580.43) 5310.98#
Particulars 31st March, 2019 31st March, 2018DeferredassetsforDeferredtaxliability (3472.89) 3121.19#Foreign Currency Fluctuation 232.27 195.92 EmployeeBenefitsExpenses 19.67 11.31 TotalRegulatoryDeferralAccountBalancesBeforeTax-Income/(Expenses) (3,220.95) 3,328.42CurrentTaxonRegulatoryDeferralAccountBalances (694.08) 44.23 Net Movement in Regulatory Deferral Account Balances - Income / (Expenses) (net of Tax)
(2,526.87) 3,284.19
Particulars 31st March, 2019 31st March, 2018Before Tax Tax
expense/ (benefit)
Net of Tax Before Tax Tax expense/ (benefit)
Net of Tax
Net gains/(losses) on fair valuation of equityinstruments
(14.15) - (14.15) (12.92) - (12.92)
Netacturiallossesondefinedbenefitplans (0.26) 0.05 (0.31) 37.58 8.02 29.56 Less: Transferred to expenditure duringconstruction (net)
2.34 0.50 1.84 10.94 2.33 8.61
Other Comprehensive Income (Net of Tax) (16.75) (0.45) (16.30) 13.72 5.69 8.03
(` in Crore)
(` in Crore)
(` in Crore)
66. Financial Risk Management (Contd.)
341
Particulars 31st March, 2019 31st March, 2018Profitbeforeincometaxexpenseincludingmovementinregulatory 8453.09 13514.98Tax at the Company's domestic tax rate of 34.944 % (31 March 2018 34.608 %) 2953.85 4677.26Taxeffectof: NonDeductibletaxitems (2,743.09) (4,201.98)Taxexemptincome (1,769.51) 576.15 DeferredAssetsforDeferredTaxLiability 2,654.47 (1,080.18)PreviousYearstaxliability - 15.34 Unabsorbedtaxlosses (1568.19) (221.16)DeferredTaxexpense/(income) (3454.37) 3068.77Minimumalternatetaxadjustments** 2,346.41 2,476.78Income tax expense (1,580.43) 5,310.98
Particulars 31st March, 2019 31st March, 2018Temporarydifferencesrelatingtoinvestmentsinsubsidiariesforwhichdeferredtaxliabilitieshave not been recognised: Undistributedearnings 231.24 77.88Unrecogniseddeferredtaxliabilitiesrelatingtotheabovetemporarydifferences 47.53 16.01
(` in Crore)
(` in Crore)
(` in Crore)
(d) Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate:
**RestatedinthecurrentyearconsequenttorecognitionofMinimumAlternateTaxCreditindeferredtaxassetsduringtheyear.Refernoteno 26 (c) and (d).
#Refernoteno55forreclassification. (e) Unrecognised Temporary Differences
(i) Long Term Employee Benefits A. Leave Obligations TheCompanyprovidesforearnedleavebenefit(includingcompensatedabsences)andhalf-payleavetotheemployeesofthecompany
whichaccrueannuallyat30daysand20daysrespectively.Earnedleaveisencashablewhileinservice.Halfpayleaves(HPL)areen-cashableonlyonseparationbeyondtheageof55yearsuptothemaximumof300days(HPL).However,totalnumberofleavethatcanbe encashed on superannuation shall be restricted to 300 days and no commutation of half pay leave shall be permissible. The liability for same is recognized on the basis of actuarial valuation.
B. Otheremployeebenefits–POWERGRIDEmployeefamilyrehabilitationscheme ThecompanyhasintroducedPOWERGRIDEmployeesFamilyEconomicRehabilitationSchemeduringtheyear.TheObjectiveofthescheme
istoprovidemonetaryassistanceandsupporttoanemployeeincaseofhis/herpermanenttotaldisablementandtohis/herfamilyincaseofdeathwhileinservice.Thebeneficiarywouldbeentitledtomonthlypaymentequivalenttotheemployee’s50%ofonemonthpaylastdrawnprovidedthebeneficiarydepositswiththecompanyanamountequaltoPF(excludingVPF)balance,GratuityamountandGroupInsurance (EDLI) amount, Such monthly payment would continue till the normal notional date on which the employee concerned would have attained the age of superannuation had the employee continued in the service of the company. The scheme is optional. Provision for POWERGRIDEmployeesFamilyEconomicRehabilitationSchemeamountingto₹0.53crore(PreviousYear₹6.62crore)fortheyearhasbeen made during the year based on actuarial valuation.
(ii) Post-employment obligations(Defined Employee Benefit/Contribution Schemes) A. Post-RetirementMedicalFacility(PRMF) TheCompanyhasPost-RetirementMedicalFacility(PRMF),underwhichretiredemployeesandthespouseareprovidedmedicalfacilitiesin
theempanelledhospitals.TheycanalsoavailtreatmentasOut-Patientsubjecttoaceilingfixedbythecompany.Theliabilityforthesameis recognized on the basis of actuarial valuation on annual basis on the Balance Sheet date. The scheme is funded by the company and is managed by a separate trust constituted on 1stMay2018.
68. Employee Benefit Obligations
Particulars 31st March, 2019 31st March, 2018Current Non-current Total Current Non-current Total
Leave Obligations 39.77 331.92 371.69 42.04 312.90 354.94Post-RetirementMedicalFacility(PRMF) 16.86 422.11 438.97 12.30 374.36 386.66OtherEmployeebenefits/LongServiceAward 1.15 13.60 14.75 1.14 13.26 14.40Gratuity 111.45 514.99 626.44 82.72 548.76 631.48Other Defined retirement benefits (ODRB)/Baggage Allowance
2.06 16.67 18.74 2.08 16.35 18.43
Total employee benefit obligations 171.29 1299.29 1470.59 140.28 1265.63 1405.91
67. Income Tax expense (Contd.)
Consolidated Financial Statements
342
(` in Crore)
(` in Crore)
(` in Crore)
Particulars 31st March, 2019 31st March, 2018Current Non-current Total Current Non-current Total
Provident Fund (PF) 141.68 2615.90 2757.58 427.96 2196.21 2624.17
ParticularsPF
Present value of obligation
Fair value of plan assets
Net amount
1st April, 2018 2624.17 2649.00 (24.83) Service cost 98.18 - 98.18Interestexpense(income) 199.44 226.44 (27.00)Total 297.62 226.44 71.18Re measurementsReturnonplanassets,excludingamountincludedininterestexpense/(income) - - -(Gain)/Lossfromchangeindemographicassumptions - - -(Gain)/Lossfromchangeinfinancialassumptions (0.10) - (0.10)Experience(Gain)/Losses (34.91) (34.91)Total (35.01) (35.01)Employee contributions 111.69 209.88 (98.19)Benefitspayments (240.89) (240.89) -31st March, 2019 2757.58 2844.43 (86.85)
ParticularsPF
Present value of obligation
Fair value of plan assets
Net amount
1st April, 2017 2321.95 2363.30 (41.35) Service cost 71.41 - 71.41Interestexpense(income) 174.15 217.78 (43.63)Total 245.56 217.78 27.78Re measurementsReturnonplanassets,excludingamountincludedininterestexpense/(income) - - -(Gain)/Lossfromchangeindemographicassumptions - - -(Gain)/Lossfromchangeinfinancialassumptions (0.06) - (0.06)Experience(Gain)/Losses 60.21 60.21Total 60.15 60.15Employee contributions 134.22 205.63 (71.41)Benefitspayments (137.71) (137.71) -31st March, 2018 2624.17 2649.00 (24.83)
B. Otheremployeebenefits–LongServiceAward Thisbenefitisapplicabletoallregularemployeesofthecompany(exceptforDirectorsandCMD)whohavesuperannuatedaftercompleting
at least 10 years of service. C. Gratuity Thecompanyhasadefinedbenefitgratuityplan.Everyemployeewhohasrenderedcontinuousserviceoffiveyearsormoreisentitled
to get gratuity at 15 days salary (15/26 x last drawn basic salary plus, dearness allowance) for each completed year of service onsuperannuation, resignation, termination, disablement or on death subject to amaximumof ₹20 lacs. The scheme is fundedby thecompany and is managed by a separate trust. The liability for the same is recognized on the basis of actuarial valuation on annual basis on theBalanceSheetdate.CompanyhascarriedouttheactuarialvaluationofGratuitybenefitconsideringceilingof₹20Lakhs.
D. OtherDefinedRetirementBenefits(ODRB)/BaggageAllowance The Company has a scheme for settlement at the time of superannuation at home town for employees and dependents to superannuated
employees. The scheme is unfunded and liability for the same is recognized on the basis of actuarial valuation on annual basis on the Balance Sheet date.
E. Provident Fund Company pays fixed contribution to Provident Fund at predetermined rate to a separate trust, which invests the funds in permitted
securities. Contribution to family pension scheme is paid to the appropriate authorities. The contribution to the fund and EPS scheme for the yearamountingto₹131.04crore(previousyear₹93.07crore)hasbeenrecognizedasexpenseandischargedtoStatementofProfitandLoss.TheobligationofthecompanyislimitedtosuchfixedcontributionandtoensureaminimumrateofinterestoncontributionstothemembersasspecifiedbyGOI.Asperthereportofactuaryoverallinterestearningandcumulativesurplusismorethanstatutoryinterestpaymentrequirement.Hence,nofurtherprovisionisconsiderednecessary.SincethecompanydoesnothaveunconditionalrightoverthePF corpus, the surplus has not been recognized in the Balance Sheet.
68. Employee Benefit Obligations (Contd.)
343
68. Employee Benefit Obligations (Contd.)
ParticularsPF
31st March, 2019 31st March, 2018Present value of funded obligations 2757.58 2624.17Fair value of plan assets 2844.43 2649.00Deficit/(Surplus) of funded plan (86.85) (24.83)
Particulars PFa) Impact of change in discount rate 2757.58 Present value of Obligation at the end of period-Impactduetoincreaseof0.5% (0.32)-Impactduetodecreaseof0.5% 0.33
Particulars 31st March, 2019 31st March, 2018Quoted Unquoted Total In % Quoted Unquoted Total In %
Equityinstruments(ETF) 38.62 - 38.62 2% 14.84 - 14.84 1%Debt instrumentsGovt/StateBonds 1570.27 - 1570.27 55% 1395.64 - 1395.64 53%PSUandPrivateBonds 1135.92 - 1135.92 40% 1056.47 - 1056.47 40%
Bank Balance 7.79 - 7.79 0% 12.11 - 12.11 0%Other Receivables 91.83 - 91.83 3% 169.94 - 169.94 6%Total 2844.43 - 2844.43 2649.00 - 2649.00
Particulars Less than a year
Between 1-2 year
Between 2-5 years
Over 5 years
Total
31st March, 2019 141.68 125.82 356.78 2133.3 2757.5831st March, 2018 427.96 185.44 584.58 1426.19 2624.17
(` in Crore)
(` in Crore)
(` in Crore)
(` in Crore)
The net liability disclosed above relates to Provident Fund is as follows:
Sensitivity Analysis of Provident Fund:
The major categories of plan assets (PF) are as follows
Fairvalueofcompany’sowntransferablefinancialinstrumentsheldasplanassetsis₹85.50croreason31stMarch,2019(₹94.81croreason 31stMarch,2018).
Theexpectedmaturityanalysisofprovidentfundisasfollows:
F. Pension TheCompanyhasschemeofemployeesdefinedPensionContribution.Companycontributionispaidtoseparatetrust.Amountof
contributionpaid/payablefortheyearis₹102.41crore(previousyear₹108.67crore)hasbeenrecognizedasexpenseandischargedtoStatementofProfit&Loss.
Consolidated Financial Statements
344
(` in
Cro
re)
The
sum
mar
ized
pos
ition
of v
ario
us e
mpl
oyee
ben
efit o
blig
atio
ns is
as
follo
ws:
Part
icul
ars
Gra
tuity
OD
RBLe
aves
PRM
FPr
esen
t va
lue
of
oblig
atio
n
Fair
valu
e of
pla
n as
sets
Net a
mou
ntPr
esen
t va
lue
of
oblig
atio
n
Fair
valu
e of
pla
n as
sets
Net
amou
ntPr
esen
t va
lue
of
oblig
atio
n
Fair
valu
e of
pla
n as
sets
Net
amou
ntPr
esen
t va
lue
of
oblig
atio
n
Fair
valu
e of
pla
n as
sets
Net
amou
nt
1st A
pril,
201
863
1.48
579.
5151
.97
18.4
3-
18.4
335
4.94
-35
4.94
386.
66-
386.
66 S
ervi
ce c
ost
29.6
4-
29.6
40.98
-0.98
40.7
5-
40.7
512.84
-12.84
Interestexpense(income)
47.9
944
.04
3.95
1.40
-1.
4026
.97
-26
.97
29.38
3.00
26.38
Tota
l am
ount
reco
gniz
ed in
pr
ofit o
r lo
ss77
.63
44.0
433
.59
2.38
-2.
3867
.72
-67
.72
42.2
23.
0039
.22
Re m
easu
rem
ents
Returnonplanassets,excluding
amou
nt in
clude
d in
inte
rest
expense/(income)
-7.
53(7
.53)
--
--
--
--
-
(Gain)/Lossfromchangein
dem
ogra
phic
assu
mpt
ions
--
--
--
--
--
--
(Gain)/Lossfromchangein
financialassumptions
(5.9
5)-
(5.9
5)(0
.21)
-(0
.21)
(4.9
1)-
(4.9
1)(7
.60)
-(7
.60)
Experience(Gain)/Losses
(6.3
6)-
(6.3
6)(1
.63)
-(1
.63)
(2.28)
-(2.28)
33.6
6-
33.6
6To
tal a
mou
nt re
cogn
ized
in
othe
r co
mpr
ehen
sive
inco
me
(12.
31)
-(1
2.31
)(1
.84)
-(1
.84)
(7.1
9)-
(7.1
9)26
.06
-26
.06
Empl
oyer
con
tribu
tions
-29
.56
(29.
56)
--
--
--
-43
1.64
(431
.64)
Benefitspayments
(70.
36)
(70.
36)
-(0
.23)
-(0
.23)
(43.78)
-(43.78)
(15.
96)
(15.
96)
-31
st M
arch
, 201
962
6.44
590.
2836
.16
18.7
4-
18.7
437
1.69
-37
1.69
438.
9841
8.68
20.3
0
68. E
mpl
oyee
Ben
efit O
blig
atio
ns (
Cont
d.)
345
(` in
Cro
re)
Gra
tuity
OD
RBLe
aves
PRM
FPa
rtic
ular
s31
st M
arch
, 20
1931
st M
arch
, 20
1831
st M
arch
, 20
1931
st M
arch
, 20
1831
st M
arch
, 20
1931
st M
arch
, 20
1831
st M
arch
, 20
1931
st M
arch
, 20
18Pr
esen
t val
ue o
f fun
ded
oblig
atio
ns62
6.44
631.48
--
--
438.
98-
Fair
valu
e of
pla
n as
sets
590.
2757
9.51
--
--
418.
68-
Deficit/(Surplus)offundedplan
36.1
751
.97
--
--
20.3
0-
Unfundedplans
--
18.7
418.43
371.
6935
4.94
-386.66
The
net d
iscl
osed
abo
ve re
late
s to
fund
ed a
nd u
nfun
ded
plan
s ar
e as
follo
ws:
-
Thecompanyexpectstocontribute₹33.85croretothegratuitytrustduringtheFY2019-20.
(` in
Cro
re)
Part
icul
ars
Gra
tuity
OD
RBLe
aves
PRM
FPr
esen
t va
lue
of
oblig
atio
n
Fair
valu
e of
pla
n as
sets
Net a
mou
ntPr
esen
t va
lue
of
oblig
atio
n
Fair
valu
e of
pla
n as
sets
Net
amou
ntPr
esen
t va
lue
of
oblig
atio
n
Fair
valu
e of
pla
n as
sets
Net
amou
ntPr
esen
t va
lue
of
oblig
atio
n
Fair
valu
e of
pla
n as
sets
Net
amou
nt
1st A
pril,
201
762
5.54
551.
8373
.71
17.6
4-
17.6
448
9.97
-48
9.97
340.
28-
340.
28Se
rvice
cos
t32
.32
-32
.32
0.94
-0.
9433.78
-33.78
11.1
6-
11.1
6Interestexpense(income)
46.9
241
.39
5.53
1.32
-1.
3236
.75
-36
.75
25.5
2-
25.5
2To
tal a
mou
nt re
cogn
ized
in
profi
t or
loss
79.2
441
.39
37.8
52.
26-
2.26
70.5
3-
70.5
336
.68
-36
.68
Re m
easu
rem
ents
Returnonplanassets,excluding
amou
nt in
clude
d in
inte
rest
expense/(income)
-10
.95
(10.
95)
--
--
--
--
-
(Gain)/Lossfromchangein
dem
ogra
phic
assu
mpt
ions
--
--
--
--
--
-
(Gain)/Lossfromchangein
financialassumptions
(3.9
7)-
(3.9
7)(0
.13)
-(0
.13)
(2.6
9)-
(2.6
9)(5
.07)
-(5
.07)
Experience(Gain)/Losses
(40.
62)
(40.
62)
(1.2
4)-
(1.2
4)6.
95-
6.95
25.3
0-
25.3
0To
tal a
mou
nt re
cogn
ized
in
othe
r co
mpr
ehen
sive
inco
me
(44.
59)
-(4
4.59
)(1
.37)
-(1
.37)
4.26
-4.
2620
.23
-20
.23
Empl
oyer
con
tribu
tions
-4.
05(4
.05)
--
--
--
--
-Benefitspayments
(28.71)
(28.71)
-(0
.10)
-(0
.10)
(209.82)
-(209.82)
(10.
53)
-(1
0.53
)31
st M
arch
, 201
863
1.48
579.
5151
.97
18.4
3-
18.4
335
4.94
-35
4.94
386.
66-
386.
66
68. E
mpl
oyee
Ben
efit O
blig
atio
ns (
Cont
d.)
Consolidated Financial Statements
346
Gratuity, ODRB, Pension, PRMF,PFParticulars 31st March, 2019 31st March, 2018Discount rate 7.75% 7.60%Salarygrowthrate(exceptforPF) 6.50% 6.50%
Particulars 31st March, 2019 31st March, 2018i) Retirement Age 60 60ii) Mortality rates inclusive of provision for disability 100%ofIALM(2006-08)iii) Ages
Withdrawal rate % Withdrawal%Upto30years 3 3From 31 to 44 years 2 2Above 44 years 1 1
Age Mortality rate Age Mortality rate Age Mortality rate15 0.000614 45 0.002874 75 0.03963720 0.000888 50 0.004946 80 0.06055825 0.000984 55 0.007888 85 0.09198230 0.001056 60 0.011534 90 0.13889535 0.001282 65 0.017009 95 0.20858540 0.001803 70 0.025855 100 0.311628
(iii) Significant actuarial assumptions for Post-Employment Benefits : Economic Assumptions
ThediscountrateisgenerallybaseduponthemarketyieldsavailableonGovt.Bondsattheaccountingdaterelevanttocurrencyofbenefitpayments for a term that matches the liabilities. Salary growth rate is companies’ long term best estimate as to salary increases and takes accountofinflation,seniority,promotion,businessplan,HRPolicyandotherrelevantfactorsonlongtermbasis.
Demographic Assumptions
Mortality rates for specimen ages
(iv) Sensitivity Analysis of the defined benefit obligation
Particulars Gratuity ODRB Leave PRMFa) Impact of change in discount rate Present value of Obligation at the end of period 626.44 18.74 371.69 438.98-Impactduetoincreaseof0.5% (18.91) (0.70) (14.57) (24.01)-Impactduetodecreaseof0.5% 20.37 0.71 15.79 24.50
b) Impact of change in salary increase Present value of Obligation at the end of period 626.44 18.74 371.69 438.98-Impactduetoincreaseof0.5% 6.91 0.71 15.91 24.94-Impactduetodecreaseof0.5% (7.20) (0.70) (14.80) (24.13)
Althoughtheanalysisdoesnottakeaccountofthefulldistributionofcashflowsexpectedundertheplan,itdoesprovideanapproximationof the sensitivity of the assumptions shown.
Thesensitivityanalysisabovehavebeendeterminedbasedonamethodthatextrapolatestheimpactondefinedbenefitobligationasaresult of reasonable changes in key assumptions occurring at the end of the reporting period. This analysis may not be representative of theactualchangeinthedefinedbenefitobligationsasitisunlikelythatthechangeinassumptionswouldoccurinisolationofoneanotheras some of the assumptions may be correlated
(` in Crore)
68. Employee Benefit Obligations (Contd.)
347
(v) The major categories of plan assets (Gratuity) are as follows:
Particulars31st March, 2019 31st March, 2018
Quoted Unquoted Total In % Quoted Unquoted Total In %Equityinstruments(ETF) 3.35 - 3.35 0.5% 3.20 - 3.20 1%Debt instrumentsGovt/StateBonds 292.45 - 292.45 48.5% 291.91 - 291.91 49%PSUandPrivateBonds 307.27 - 307.27 51.0% 296.26 - 296.26 50%Total* 603.07 - 603.07 591.37 - 591.37
Particulars31st March, 2019 31st March, 2018
Quoted Unquoted Total In % Quoted Unquoted Total In %Equityinstruments(ETF) - - - - - - - -Debt instrumentsGovt/StateBonds 171.85 - 171.85 41% - - - -PSUandPrivateBonds 246.56 - 246.56 59% - - - -Total# 418.41 - 418.41 - - - -
Particulars Less than a year Between 1-2 year Between 2-5 years Over 5 years Total31st March, 2019Definedbenefitobligation(Gratuity) 78.80 9.56 172.02 366.07 626.45Post-employmentmedicalbenefits 16.86 18.13 70.80 333.19 438.98ODRB 2.06 0.20 0.96 15.51 18.73Otheremployeebenefits(LSA) 1.15 1.00 2.90 9.69 14.74Total 98.87 28.89 246.68 724.46 1098.9031st March, 2018Definedbenefitobligation(Gratuity) 82.71 153.47 153.16 242.14 631.48Post-employmentmedicalbenefits 12.31 12.95 43.26 318.14 386.66ODRB 2.08 1.72 4.82 9.81 18.43Otheremployeebenefits(LSA) 1.14 0.97 2.83 9.46 14.40Total 98.24 169.11 204.07 579.55 1050.97
(` in Crore)
(` in Crore)
(` in Crore)
*Fairvaluationasperactuarialvaluationis₹590.27crore(PreviousYear₹579.51crore). Fairvalueofcompany’sowntransferablefinancialinstrumentsheldasplanassetsis₹73.83crore(PreviousYear₹87.53crore). (vi) The major categories of plan assets (PRMF) are as follows:
#Fairvaluationasperactuarialvaluationis₹418.69crore(PreviousYear₹Nilcrore) (vii) Description of Risk exposures Valuationisbasedoncertainassumptionswhicharedynamicinnatureandvaryovertime.Assuchcompanyisexposedtovariousrisksas
follows: A)SalaryIncreases(exceptforPF)–Actualsalaryincreasewillincreasetheplan’sliability.Increaseinsalaryincreaserateassumptions
infuture valuation will also increase the liability. B)Investmentrisk–Ifplanisfundedthenassetsliabilitiesmismatchandactualinvestmentreturnonassetslowerthanthediscountrate
assumed at the last valuation date can impact the liability C)DiscountRate–Reductionindiscountrateinsubsequentvaluationscanincreasetheplan’sliability. D)Mortality&disability–Actualdeathsanddisabilitycasesprovinglowerorhigherthanassumedinthevaluationcanimpacttheliabilities. E)Withdrawals–Actualwithdrawalsprovinghigherorlowerthanassumedwithdrawalsandchangeofwithdrawalratesatsubsequent
valuations can impact Plan’s liability. (viii) Defined benefit liability and employee contribution Theweightedaveragedurationofthedefinedbenefitobligationsis41.39years(PreviousYear41.89years).Theexpectedmaturityanalysis
ofundiscountedpension,gratuity,otherdefinedretirementbenefitandpost-employmentmedicalbenefitsisasfollows:
68. Employee Benefit Obligations (Contd.)
Consolidated Financial Statements
348
69. Recent Accounting Pronouncements effective from 1st April 2019: IndAS116wasnotifiedbyMinistryofCorporateAffairson30March2019anditisapplicableforannualreportingperiodsbeginningonor
after 1 April 2019. IndAS116willaffectprimarilytheaccountingby lesseesandwillresult intherecognitionofalmostall leasesonbalancesheet.The
standardremovesthecurrentdistinctionbetweenoperatingandfinanceleasesandrequiresrecognitionofanasset(theright-of-usetheleaseditem)andafinancialliabilitytopayrentalsforvirtuallyallleasecontracts.Anoptionalexemptionexistsforshort-termandlow-valueleases.Theaccountingbylessorswillnotsignificantlychange.
TheCompanyisevaluatingtherequirementsoftheamendmentandtheeffectonfinancialstatements. AmendmentstoIndAS19,‘EmployeeBenefits’ TheamendmentstoIndAS19clarifytheaccountingfordefinedbenefitplanamendments,curtailmentsandsettlements.Theyconfirmthat
entities must : • Calculatethecurrentservicecostandnetinterestfortheremainderofthereportingperiodafteraplanamendment,curtailmentor
settlementbyusingtheupdatedassumptionsfromthedateofthechange; • Anyreductioninasurplusshouldberecognisedimmediatelyinprofitorlosseitheraspartofpastservicecost,orasagainorloss
onsettlement.Inotherwords,areductioninasurplusmustberecognisedinprofitorlossevenifthatsurpluswasnotpreviouslyrecognisedbecauseoftheimpactoftheassetceiling;and
• Separatelyrecogniseanychangesintheassetceilingthroughothercomprehensiveincome. These amendments will apply to any future plan amendments, curtailments, or settlements of the Company on or after 1 April 2019.The
Companyisevaluatingtherequirementsoftheamendmentandtheeffectonfinancialstatements. AmendmenttoIndAS12,‘IncomeTaxes’ Theamendmentsclarifythattheincometaxconsequencesofdividendsonfinancialinstrumentsclassifiedasequityshouldberecognised
accordingtowherethepasttransactionsoreventsthatgenerateddistributableprofitswererecognised.Theserequirementsapplytoallincometaxconsequencesofdividends.Previously,itwasunclearwhethertheincometaxconsequencesofdividendsshouldberecognisedinprofitorloss,orinequity,andthescopeoftheexistingguidancewasambiguous.
TheCompanyisevaluatingtherequirementsoftheamendmentandtheeffectonfinancialstatements. Amendments to Ind AS 23, ‘Borrowing Costs’ Theamendmentsclarifythatifaspecificborrowingremainsoutstandingaftertherelatedqualifyingassetisreadyforitsintendeduseor
sale, it becomes part of general borrowings. TheCompanyisevaluatingtherequirementsoftheamendmentandtheeffectonfinancialstatements.70. a) Figureshavebeenroundedofftonearestrupeesincroreuptotwodecimal. b) Previousyearfigureshavebeenregrouped/rearrangedwhereverconsiderednecessary.
Place: New DelhiDate: 29th May, 2019
Divya TandonCompany Secretary
K. SreekantDirector (Finance)
Ravi P SinghDirector (Personnel)
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari) Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
For and on behalf of the Board of Directors
As per our report of even date
349
INDEPENDENT AUDITOR’S REPORTTO THE MEMBERS OF POWER GRID CORPORATION OF INDIA LIMITEDReport on the Audit of the Consolidated Financial Statements OpinionWehaveauditedtheaccompanyingconsolidatedfinancialstatementsofPowerGridCorporationofIndiaLimited(hereinafterreferredtoasthe“Holding Company”), and its subsidiaries (The Holding Company and its subsidiaries together referred to as “the Group”), its joint ventures, whichcomprise theconsolidatedBalanceSheetasatMarch31,2019,andtheConsolidatedStatementofProfitandLoss(includingOtherComprehensiveIncome),theConsolidatedStatementofChangesinEquityandtheConsolidatedStatementofCashFlowsfortheyearended,andnotestotheconsolidatedfinancialstatement,includingasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation(hereinafterreferredtoas“theconsolidatedfinancialstatements”).Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidconsolidatedfinancialstatementsgivetheinformationrequiredbytheCompaniesAct,2013(“theAct”)inthemannersorequiredandgiveatrueandfairviewinconformitywith the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015,asamended,(“IndAS”)andotheraccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2019,theprofit&totalcomprehensiveincome,changesinequityanditscashflowsfortheyearendedonthatdate.Basis for OpinionWeconductedourauditoftheconsolidatedfinancialstatementsinaccordancewiththeStandardsonAuditing(SAs)specifiedundersection143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the ConsolidatedFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndia(ICAI)togetherwiththeindependencerequirementsthatarerelevanttoourauditoftheconsolidatedfinancialstatementsundertheprovisionsoftheActandtheRulesmadethereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheICAI’sCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheconsolidatedfinancialstatements.Emphasis of MatterWedrawattentiontothefollowingmattersinthenotestotheConsolidatedFinancialStatements(a) InrespectofrecognitionofrevenuefromtransmissionassetsforwhichfinaltariffordersareyettobeissuedbytheCERC[ReferNoteNo.
35(b)(ii)];and(b) Inrespectofbalanceconfirmation,reconciliationandconsequentialadjustments,ifany,ofTradeReceivableandRecoverableandTrade
andOtherpayableswhichiscarriedoutonanongoingbasis[ReferNoteNo.45(a)].Ouropinionisnotmodifiedinrespectofthesematters.Key Audit MattersKeyauditmattersarethosemattersthat, inourprofessionaljudgment,wereofmostsignificanceinourauditoftheconsolidatedfinancialstatements for the year ended 31st March 2019. Thesematters were addressed in the context of our audit of the consolidated financialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Wehavedeterminedthe matters described below to be the key audit matters pertaining to Power Grid Corporation of India Limited, the Listed “Holding Company” to be communicated in our report.
Sr. No. Key Audit Matters# Auditors’ approach to address the Key Audit Matters1 Recognition of Revenue
The Company has revenue from three business segments viz. Transmission, Telecom and Consultancy. Transmission Income is accounted for based ontariffordersnotifiedbytheCERC.Incaseoftransmissionprojectswherefinal tariffordersare yet to be notified, transmission incomeis accounted for on provisional basis as per tariff regulations and orders of the CERC insimilar cases.Difference, if any, isaccountedonissuanceoffinaltariffordersbytheCERC.As at each reporting date, transmission income includes an accrual for services rendered to the customersbutnot yetbilled i.e.UnbilledRevenue.The Company implemented Ind AS 115 in the currentfinancialyearandappliedtheavailableexemptionprovidedtherein,tonotrestatethecomparative periods.This is considered as Key Audit Matter due to the nature and extent of estimatesmade asperCERCtariffRegulationsandcontractswithcustomers for recognition of revenue.(Refer Note No. 35(b)(ii) of Consolidated Financial Statement)
Our audit approach was a combination of test of internal controls and substantive procedures which includes the following: WeassessedtheCompany’sprocesstoidentifytheimpactofadoptionofthe
new revenue accounting standard. Evaluated the detailed analysis performed by management on revenue
streamsbyselectingsamples for theexistingcontractswithcustomersandconsidered revenue recognition policy in the current period in respect of those revenuestreams;
Evaluated and tested the effectiveness of the design of Internal controlsrelating to recognition and measurement of revenue from Transmission, Telecom and Consultancy.
VerifiedthetransmissionrevenuebasedontheCERCtariffRegulation,orders,circulars, guidelines and the company’s internal circulars.
VerifiedtherevenuefromTransmissionbasedonthetariffordersnotifiedbyCERC during the year on test basis.
Verified on test basis the income recognised on provisional basis (UnbilledRevenue) consistently as per the regulatory guidelines for the assets whose finalordersareyettobenotifiedbyCERC,basedonthedateofcommercialoperation (DOCO) letters issued by Regional technical heads, and capital cost, ascertifiedbytheManagement.
Verified theConsultancyandTelecom revenuebasedon the contractswithcustomers.
Evaluated the appropriateness of the disclosures provided under the new revenuestandardandassessedtheadequacyoftherelevantdisclosures.
Verified on test basis the incentive/disincentive recognized as per thecompany’s policy.
Consolidated Financial Statements
350
#AbovereferredKeyAuditMattersareinrespectoftheHoldingCompanyonly.Allthesubsidiariesinthegroupareunlistedentities.Information Other than the Consolidated Financial Statements and Auditor’s Report ThereonThe Holding Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises the informationincludedintheManagementDiscussionandAnalysis,Board’sReportincludingAnnexurestoBoard’sReport,BusinessResponsibilityReport,CorporateGovernanceandShareholder’s Information,butdoesnot includetheconsolidatedfinancialstatementsandourAuditor’sReportthereon.TheotherinformationasidentifiedaboveisexpectedtobemadeavailabletousafterthedateofthisAuditor’sReport.Ouropinionon theconsolidatedfinancialstatementsdoesnotcover theother informationandwewillnotexpressany formofassuranceconclusion thereon. Inconnectionwithourauditoftheconsolidatedfinancialstatements,ourresponsibilityistoreadtheotherinformationidentifiedabovewhenitbecomesavailableand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththeconsolidatedfinancialstatementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.Wehavenothingtoreportinthisregard.Whenwereadthosedocumentsincludingannexures,ifanythereon,ifweconcludethatthereisamaterialmisstatementtherein,weshallcommunicate the matter to those charged with the governance.Management’s Responsibility for the Consolidated Financial StatementsThe Holding Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation oftheseconsolidatedfinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceincludingothercomprehensiveincome,changesinequityandcashflowsoftheGroupinaccordancewiththeIndASandotheraccountingprinciplesgenerallyaccepted in India.
Sr. No. Key Audit Matters# Auditors’ approach to address the Key Audit Matters2 Deferred Tax Assets relating to MAT
credit entitlementThe Company has considered MAT credit of `5935.70 Crore in anticipation of set offagainst the tax payable in future years andcreated Deferred Tax Asset for the sameduring the year. The same has been recognized as liability of the Regulatory Deferral Account corresponding to the said MAT credit entitlement.Weidentifiedthisasakeyauditmatterbecauseof the importance of this matter intended uses ofthefinancialstatementsanditsmaterialityand requirement of judgement in assessingfuturetaxableprofitsforrecognisitionofMATcredit entitlement.(Refer Note No. 26 of Consolidated financialstatements.)
Ourauditapproachinvolved; UnderstandingthecurrentstatusofavailabilityofMATcredits Discussed with appropriate senior management and evaluated management’s
underlyingkeyassumptions forsetoffofMATcreditagainst taxable futureprofits
3 Assessment of contingent liabilities in respect of certain litigations including land compensation, direct and indirect taxes, various claims filed by other parties not acknowledged as debt. There is high level of judgement requiredin estimating the contingent liabilities. The company’s assessment of contingent liabilities is supported by the facts of the matter, Company’s judgement thereon, past experience and advices from legaland independent tax consultants wherevernecessary.We identified the above area as Key AuditMatters in view of associated uncertainty relating to the outcome of these matter.(Note No. 63 of Consolidated financialstatements).
Ourauditapproachinvolved;
a. Understandingthecurrentstatusofthelitigationforlandcompensations/taxassessments.
b. Examiningrecentordersfromcompetentauthoritiesand/orcommunicationreceived from various authorities, judicial forums and follow up action thereon.
c. Review and analysis of evaluation of the contentions of the company through discussions, collection of details of the subject matter under consideration, thelikelyoutcomeandconsequentpotentialoutflowsonthoseissues.
351
ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheGroupandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationoftheconsolidatedfinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraud or error.Inpreparing the consolidatedfinancial statements, theHoldingCompany’sManagement is responsible for assessing theGroup’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unlessHoldingCompany’sManagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.TheHoldingCompany’sBoardofDirectorsisresponsibleforoverseeingtheGroup’sfinancialreportingprocess.Auditor’s Responsibilities for the Audit of the Consolidated Financial StatementsOurobjectivesare toobtain reasonableassuranceaboutwhether the consolidatedfinancial statementsasawholeare free frommaterialmisstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisoftheseconsolidatedfinancialstatements.AspartofanauditinaccordancewithSAs,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:• Identifyandassesstherisksofmaterialmisstatementoftheconsolidatedfinancialstatements,whetherduetofraudorerror,design
andperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforour opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtainanunderstandingofinternalfinancialcontrolsrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.Undersection143(3)(i)oftheAct,wearealsoresponsibleforexpressingouropiniononwhethertheCompaniesintheGrouphaveadequateinternalfinancialcontrolssysteminplaceandtheoperatingeffectivenessofsuchcontrols.
• EvaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebyHolding Company’s Management.
• ConcludeontheappropriatenessofHoldingCompany’sManagementuseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheabilityoftheGrouptocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresintheconsolidatedfinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluatetheoverallpresentation,structureandcontentoftheconsolidatedfinancialstatements,includingthedisclosures,andwhethertheconsolidatedfinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
• ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheGrouptoexpressanopinionontheconsolidatedfinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceoftheauditoftheFinancialStatements of such entities included in the Consolidated Financial Statements of which we are the Independent Auditors. For the other entities included in the Consolidated Financial Statements, which have been audited by other Auditors, such other Auditors remain responsible for the direction,supervisionandperformanceoftheauditscarriedoutbythem.Weremainsolelyresponsibleforourauditopinion.
Materialityisthemagnitudeofmisstatementsintheconsolidatedfinancialstatementsthat,individuallyorinaggregate,makesitprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthefinancialstatementsmaybeinfluenced.Weconsiderquantitativematerialityandqualitativefactorsin(i)planningthescopeofourauditworkandinevaluatingtheresultsofourwork;and(ii)toevaluatetheeffectofanyidentifiedmisstatementsinthefinancialstatements.WecommunicatewiththosechargedwithgovernanceoftheHoldingCompanyincludedintheConsolidatedFinancialStatements,ofwhichwearetheIndependentAuditorsregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.We also provide those chargedwith governancewith a statement that we have compliedwith relevant ethical requirements regardingindependence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditoftheconsolidatedfinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.Other Matters(a) Wedidnotauditthefinancialstatements/financialinformationofthefollowingsubsidiarieswhosefinancialstatementsreflectthedetails
given below for total assets and net assets as at 31stMarch2019,totalrevenuesandnetcashflowsfortheyearendedonthatdatetotheextenttowhichtheyarereflectedintheconsolidatedfinancialstatements:
Consolidated Financial Statements
352
S. No. Name of the Subsidiaries Total Assets Net Assets Total Revenues
Net Cash Inflows/ (Outflows)
1 Powergrid Vemagiri transmission Ltd - (19.40) - -2 Powergrid NM transmission Ltd 1,317.51 98.34 16.13 0.71 3 Powergrid Vizag Transmission Ltd 1,236.13 307.17 298.23 (0.90)4 Powergrid Southern Interconnector Transmission
System Limited 3,411.75 513.92 33.14 0.01
5 Powergrid Parli Transmission Limited 1,824.45 274.36 283.91 (6.64)6 PowergridWaroraTransmissionLimited 2,137.51 382.76 280.61 (6.83)7 Powergrid Jabalpur Transmission Limited 1,512.44 183.30 61.05 0.04 8 Powergrid Kala Amb Transmission Ltd 302.07 70.71 60.30 0.06 9 PowergridUnchaharTransmissionLtd 70.99 24.58 23.47 (1.05)10 Powergrid Medinipur Jeerat Transmission Limited 1,519.46 0.01 - 0.02 11 Powergrid Mithilanchal Transmission Limited 240.88 0.04 - 0.07 12 Powergrid Varanasi Transmission System Limited 226.37 0.04 - 0.44 13 Powergrid Jawaharpur Firozabad Transmission Limited 6.38 0.05 - 0.08 Total 13,805.94 1,835.88 1,056.84 (13.99)
(` in Crore)
TheconsolidatedfinancialstatementsalsoincludetheGroup’sshareofnetprofit/loss(includingOtherComprehensiveIncome)fortheyear ended 31stMarch2019asconsideredintheconsolidatedfinancialstatementsinrespectoffollowingjointventureswhosefinancialstatements/financialinformationhavenotbeenauditedbyus.
Thesefinancialstatements/financialinformationofsubsidiariesandjointventureshavebeenauditedbyotherauditorswhosereportshavebeen furnished to us by the Holding Company’s Management upto 25thMay,2019andouropinionontheconsolidatedfinancialstatements,in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and joint ventures, and our report in terms of sub-section(3)ofSection143oftheAct,insofarasitrelatestotheaforesaidsubsidiariesandjointventuresisbasedsolelyonthereportsoftheotherauditorsafterconsideringtherequirementofStandardonAuditing(SA600)on‘UsingtheworkofAnotherAuditor’includingmateriality.
(b) TheconsolidatedfinancialstatementsincludetheGroup’sshareofnetprofit/loss(includingOtherComprehensiveIncome)fortheyearended 31stMarch, 2019 as considered in the consolidated financial statements in respect of following joint ventureswhose financialstatements/financialinformationhavenotbeenauditedbyus.
S No. Name of Joint Ventures Group’s share net profit/(loss)1 Powerlinks Transmission Limited 55.122 Torrent Powergrid Limited 4.973 Jaypee Powergrid Limited 16.394 North East Transmission Company Limited 17.06
Total 93.54
SNo. Name of Joint Ventures Group’s share net profit/(loss)1 Parbati Koldam Transmission Company Limited 12.672 Teestavalley Power Transmission Limited (0.34)3 National High Power Test Lab Pvt Limited (1.75)4 Bihar Grid Company Limited 12.325 KalingaBidyutParasaranNigamPvtLimited# 0.006 Cross Border Transmission Limited 3.987 RINLPOWERGRIDTLTPvt.Limited## (0.02)8 Power Transmission Company Nepal Ltd * 2.23
Total 29.09
(` in Crore)
(` in Crore)
353
* located outside India. #TheHoldingcompany’sboardofdirectorshasaccordedapprovalforinitiatingprocedureforwindingupoftheJVcompany. ##TheHoldingcompany’sboardofdirectorshasaccordedin-principleapprovalforclosureoftheJVcompany. Thesefinancialstatements/financialinformationofjointventuresareunauditedandhavebeenfurnishedtousbytheHoldingCompany’s
Managementandouropinionontheconsolidatedfinancialstatements,insofarasitrelatestotheamountsanddisclosuresincludedinrespectofthesesubsidiariesandjointventures,andourreportintermsofsub-section(3)ofSection143oftheActinsofarasitrelatestotheaforesaidjointventures,isbasedsolelyonsuchunauditedfinancialstatements/financialinformation.OneofthejointventuresasaboveislocatedoutsideIndiainrespectofwhichtheHoldingCompany’smanagementhasprovidedusthefinancialstatementspreparedinaccordancewithaccountingprinciplesgenerallyacceptedinIndia.InouropinionandaccordingtotheinformationandexplanationsgiventousbytheHoldingCompany’sManagement,thesefinancialstatements/financialinformationarenotmaterialtotheGroup.
Ouropinionontheconsolidatedfinancialstatements,andourreportonOtherLegalandRegulatoryRequirementsgivenbelow,isnotmodifiedinrespectoftheabovematterswithrespecttoourrelianceontheworkdoneandthereportsoftheotherauditorsandthefinancialstatements/financialinformationcertifiedbytheHoldingCompany’sManagement.
Report on Other Legal and Regulatory Requirements1. AsrequiredbySection143(3)oftheAct,basedonourauditandontheconsiderationofreportoftheotherauditorsonseparatefinancial
statementsandtheotherfinancialinformationofsubsidiariesandjointventuresasnotedintheothermatterparagraph,wereport,totheextentapplicable,that:
a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofourauditoftheaforesaidconsolidatedfinancialstatements.
b) Inouropinion,properbooksofaccountasrequiredbylawrelatingtopreparationoftheaforesaidconsolidatedfinancialstatementshavebeenkeptsofarasitappearsfromourexaminationofthosebooksandthereportsoftheotherauditors.
c) TheConsolidatedBalanceSheet,theConsolidatedStatementofProfitandLoss(includingOtherComprehensiveIncome),theConsolidatedStatementofChangesinEquityandtheConsolidatedStatementofCashFlowsdealtwithbythisReportareinagreementwiththerelevantbooksofaccountmaintainedforthepurposeofpreparationoftheConsolidatedfinancialstatements.
d) Inouropinion,theaforesaidconsolidatedfinancialstatementscomplywiththeIndianAccountingStandardsspecifiedunderSection133of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended.
e) Inviewofexemptiongivenvidenotificationno.G.S.R.463(E)datedJune5,2015,issuedbyMinistryofCorporateAffairs,provisionsofSection164(2)oftheActregardingdisqualificationofDirectors,arenotapplicabletotheHoldingCompanyanditssubsidiaries.Further,on the basis of the reports of the auditors of 4 (four) joint ventures incorporated in India, none of the directors of the joint ventures incorporatedinIndiaisdisqualifiedason31March,2019frombeingappointedasadirectorintermsofsection164(2)oftheAct.
f) WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheHoldingCompany,itssubsidiariesandjointventuresincorporatedinIndiaandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereportin‘Annexure1’.OurreportexpressesanunmodifiedopinionontheadequacyandoperatingeffectivenessoftheGroup’sinternalfinancialcontrolswithreferencetoconsolidatedfinancialstatements.
g) WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditor’s)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventousandbasedontheconsiderationofthereportoftheotherauditorsonseparatefinancialstatementsasalsotheotherfinancialinformationofthesubsidiariesandjointventures, as noted in the ‘Other Matters’ paragraph:
i. TheconsolidatedfinancialstatementsdisclosetheimpactofpendinglitigationsontheconsolidatedfinancialpositionoftheGroup(ReferNote48and63totheconsolidatedfinancialstatements)andthejointventurecompanies(ReferNote44.2.5totheconsolidatedfinancialstatements).
ii. Provisionhasbeenmadeintheconsolidatedfinancialstatements,asrequiredundertheapplicablelaworIndianAccountingStandards,formaterialforeseeablelosses,ifany,onlong-termcontractsincludingderivativecontracts.
iii. Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbytheGroup and the joint venture companies incorporated in India.
Place: New DelhiDate: 29th May, 2019
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari) Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
Consolidated Financial Statements
354
ANNEXURE 1 ATTACHED TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE CONSOLIDATED IND AS FINANCIAL STATEMENTS OF POWER GRID CORPORATION OF INDIALIMITED FOR THE YEAR ENDED 31stMARCH, 2019.Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)In conjunction with our audit of the Consolidated Financial Statements of the Company as of and for the year ended on 31st March, 2019, we haveaudited the internalfinancialcontrolswith reference toConsolidatedFinancialStatementsofPowerGridCorporationof IndiaLimited(hereinafter referred to as “the Holding Company”) and its subsidiary companies (the Holding Company and its subsidiaries together referred to as “the Group”) and its joint venture companies, which are companies incorporated in India as of 31st March, 2019.Management’s Responsibility for Internal Financial ControlsThe respective Board of directors of the Holding company, its subsidiary companies and its joint venture companies, which are companies incorporatedinIndia,areresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontrolsoverfinancialreporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include thedesign, implementationandmaintenanceofadequate internalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetocompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.Auditors’ ResponsibilityOurresponsibilityistoexpressanopinionontheGroup’sinternalfinancialcontrolswithreferencetoConsolidatedFinancialStatementsbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting(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,totheextentapplicabletoanauditofInternalFinancialControls,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateInternalFinancialControlswithreferencetoConsolidatedFinancialStatementswereestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.OurauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemwithreferencetoConsolidatedFinancialStatementsandtheiroperatingeffectiveness.OurauditofinternalfinancialcontrolswithreferencetoConsolidatedFinancialStatements includedobtaininganunderstandingof internalfinancialcontrolswithreferencetoConsolidatedFinancialStatements,assessingtheriskthatmaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedonthe assessed risk. The procedures selected depend on the auditor’s Judgment, including the assessment of the risks of material misstatement of the Consolidated Financial Statements, whether due to fraud or error. WebelievethattheauditevidencewehaveobtainedandtheauditevidenceobtainedbytheotherauditorsofthesubsidiariesandjointventurecompaniesincorporatedinIndia,intermsoftheirreportsreferredtointhe‘OtherMatters’paragraphissufficientandappropriatetoprovideabasisforourauditopinionontheGroup’sinternalfinancialcontrolssystemwithreferencetoConsolidatedFinancialStatements.Meaning of Internal Financial Controls with reference to Consolidated Financial StatementsACompany’sinternalfinancialcontrolwithreferencetoConsolidatedFinancialStatementsisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalfinancialcontrolwithreferencetoConsolidatedFinancialStatementsincludesthosepoliciesand procedures that:i. pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassets
ofthecompany;ii. providereasonableassurance that transactionsare recordedasnecessary topermitpreparationoffinancialstatements inaccordance
withgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and
iii. providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.
Inherent Limitations of Internal Financial Controls with reference to Consolidated Financial StatementsBecauseoftheinherentlimitationsofinternalfinancialcontrolswithreferencetoConsolidatedFinancialStatements,includingthepossibilityof collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projectionsofanyevaluationoftheinternalfinancialcontrolswithreferencetoConsolidatedFinancialStatementstofutureperiodsaresubjecttotheriskthattheinternalfinancialcontrolwithreferencetoConsolidatedFinancialStatementsmaybecomeinadequatebecauseofchangesin conditions, or that the degree of compliance with the policies or procedures may deteriorate.OpinionIn our opinion, the Holding Company, its subsidiaries, and joint ventures which are companies incorporated in India have, in all material respects,anadequateinternalfinancialcontrolssystemwithreferencetoConsolidatedFinancialStatementsandsuchinternalfinancialcontrolswithreferencetoConsolidatedFinancialStatementswereoperatingeffectivelyasat31stMarch,2019,basedontheinternalcontroloverfinancial
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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.Other MattersOuraforesaidreportunderSection143(3)(i)oftheActontheadequacyandoperatingeffectivenessoftheinternalfinancialcontrolswithreference to Consolidated Financial Statements in so far as it related to 13 (thirteen) subsidiary companies and 4 (four)joint venture Companies incorporated in India, is based on the corresponding report of auditors of such companies.OuraforesaidreportunderSection143(3)(i)oftheActontheadequacyandoperatingeffectivenessoftheinternalfinancialcontrolswithreference to Consolidated Financial Statements of in so far as it related to 7 (seven) Joint venture Companies incorporated in India, and 1 (one)JointventurecompanyincorporatedoutsideIndiawhosefinancialstatements/financialinformationareunauditedandweareunabletoexpressouropiniononadequacyandoperatingeffectivenessofinternalfinancialcontrolswithreferencetoConsolidatedFinancialStatements,howeveraccordingtotheinformationandexplanationsgiventousbytheHoldingCompany’sManagement,thesefinancialstatements/financialinformation are not material.
Place: New DelhiDate: 29th May, 2019
(CA S. Murthy)Partner
M.No. 072290
(CA Rangarajan Raghavan Iyengar)Partner
M.No.041883
(CA Manaswy Kothari) Partner
M.No. 064601
(CA Gotam Kumar Bagariya)Partner
M.No. 425104
For S.K. Mittal & Co.Chartered AccountantsFirm Regn No. 001135N
For R.G.N.Price & Co.Chartered AccountantsFirmRegnNo.002785S
For Kothari & Co.Chartered AccountantsFirmRegnNo.301178E
For Parakh & Co.Chartered AccountantsFirm Regn No. 001475C
Consolidated Financial Statements
DEPARTMENT OF POST
O/o VASHI BPC NAVI MUMBAl-400703
TO,
CGM & Company Secretary,
Power Grid corporation of Indian limited.
This is to certify that dispatch of notice of 3011' AGM & /\nnu:il rcporl of powur
Grid corporation of India limited has started from today l.o 29111 July 2019
Name ..................... ~ ...... .
Deslcnatlon ...... .§ ......... ~.RV..HKl.R ..... . (VASHI BPC)
VASHI P0-400 7f'J