ELEVENTH

2018-19

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

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Memorandum for Shareholders

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Notice of 11th Adjourned Annual General Meeting of the HPPTCL.

“Notice is hereby given that 11th Adjourned Annual General Meeting of the

Shareholders of the H.P. Power Transmission Corporation Limited, Shimla will be

held on 06.02.2020 at 12:00 Noon at Himfed Building, Bypass Road (Panjri), (Below

Old MLAs' Quarters), Panjri, Tutikandi, Shimla HP 171005 (H.P.)to transact the

following business: -

ORDINARY BUSINESS:

1. To receive, consider and adopt the Financial Statements (Annual Accounts) of

the Company for the year ended 31st March, 2019, Board's Report and Report of

Auditors thereon alongwith the comments of the Comptroller and Auditors

General of India as on that date.

2. Appointment of GST Auditor of the Company for the FY 2018-19.

Place: Shimla By order of the Board of Directors

Dated: 06.02.2020

Sd/-

Er. Keshav Singh Attri

Director (P&C)

Note:

1. A Member entitled to attend and vote at the meeting is entitled to appoint a proxy to

attend and vote instead of himself and a proxy need not be a member- proxy form

attached.

2. Memorandum for Shareholders is attached.

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

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4

5

6

7

24

54

65

68

71

Memorandum for Shareholders

1

2

3

4

5

6

7

8

9

10

Notice of 11th Adjourned Annual General Meeting of the HPPTCL.

“Notice is hereby given that 11th Adjourned Annual General Meeting of the

Shareholders of the H.P. Power Transmission Corporation Limited, Shimla will be

held on 06.02.2020 at 12:00 Noon at Himfed Building, Bypass Road (Panjri), (Below

Old MLAs' Quarters), Panjri, Tutikandi, Shimla HP 171005 (H.P.)to transact the

following business: -

ORDINARY BUSINESS:

1. To receive, consider and adopt the Financial Statements (Annual Accounts) of

the Company for the year ended 31st March, 2019, Board's Report and Report of

Auditors thereon alongwith the comments of the Comptroller and Auditors

General of India as on that date.

2. Appointment of GST Auditor of the Company for the FY 2018-19.

Place: Shimla By order of the Board of Directors

Dated: 06.02.2020

Sd/-

Er. Keshav Singh Attri

Director (P&C)

Note:

1. A Member entitled to attend and vote at the meeting is entitled to appoint a proxy to

attend and vote instead of himself and a proxy need not be a member- proxy form

attached.

2. Memorandum for Shareholders is attached.

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

9

4 5

Memorandum for Shareholders

The Shareholders are informed that the Draft Financial Statements (Annual Accounts) of the Company for the financial year ended 31st March, 2019 were prepared and approved by the Board of Directors in its meeting held on 06th September, 2019. Thereafter, these were submitted to the Statutory Auditors for their report thereon. Thereafter, the report of the Statutory Auditors was received and is annexed. The audited Financial Statements (annual accounts) were submitted to the Accountant General, Himachal Pradesh to have the comments of the Comptroller and Auditor General of India (CAG) under the provisions of the Companies Act. The Comments of the CAG of India have now been received and are enclosed. The Financial Statements (Annual Accounts), Board’s Report alongwith the Report of Auditors, replies there to and comments of CAG of India and replies thereto were placed to the Board in its meeting held today on 06.02.2020 and the same are being placed for the adoption of the Shareholders please.

The Shareholders are requested to kindly consider and approve the above issues.

Place: ShimlaDate: 06.02.2020 Sd/-

Director (P & C)

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

9

4 5

Memorandum for Shareholders

The Shareholders are informed that the Draft Financial Statements (Annual Accounts) of the Company for the financial year ended 31st March, 2019 were prepared and approved by the Board of Directors in its meeting held on 06th September, 2019. Thereafter, these were submitted to the Statutory Auditors for their report thereon. Thereafter, the report of the Statutory Auditors was received and is annexed. The audited Financial Statements (annual accounts) were submitted to the Accountant General, Himachal Pradesh to have the comments of the Comptroller and Auditor General of India (CAG) under the provisions of the Companies Act. The Comments of the CAG of India have now been received and are enclosed. The Financial Statements (Annual Accounts), Board’s Report alongwith the Report of Auditors, replies there to and comments of CAG of India and replies thereto were placed to the Board in its meeting held today on 06.02.2020 and the same are being placed for the adoption of the Shareholders please.

The Shareholders are requested to kindly consider and approve the above issues.

Place: ShimlaDate: 06.02.2020 Sd/-

Director (P & C)

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

Dear Members,Your Directors are pleased to present the Eleventh Annual Report of the Company for the year ended March 31, 2019 along with the Financial Statement (Annual Accounts), Report of Auditors and Comments of the Comptroller and Auditor General of India. 1. Genesis H.P. Power Transmission Corporation Limited (HPPTCL), an undertaking of Government of

Himachal Pradesh was established on 27.08.2008 with a view to strengthen the Transmission Network in Himachal Pradesh and to facilitate evacuation of power from upcoming Generating Plants. The tasks entrusted to Corporation by GoHP inter-alia included execution of all NEW WORKS – both Transmission Lines and Sub-Stations of 66 kV and above Voltage Ratings, Formulation, Updation, Execution of Transmission Master Plan of HP for Strengthening of Transmission Network for Evacuation of Power, besides coordinating the transmission related issues with CTU, CEA, MOP (GOI), HP Government and HPSEBL. HPPTCL is also responsible for planning and coordination of transmission related issues with IPPs, CPSUs, State PSUs, HPPCL and other State/ Central Government Agencies. The Government of Himachal Pradesh vide Notification No. MPP-A(3) -1/2001-IV dated 10.06.2010 has declared HPPTCL as State Transmission Utility (STU).

2. Mission, Objectives and Functions :(a) Mission : Formulation, updation and execution of integrated Transmission master plan for strengthening of

Transmission Network and evacuation of power from Small, Medium and Large Hydro Generating Stations to the Load Centers/ CTU points.

(b) Objectives : (i) Expanding transmission network in the State in an efficient, co-ordinated and economical manner.(ii) Efficient operation and maintenance of transmission system and aspiring for minimum down time.(iii) Completion of Transmission system planning to ensure principles of reliability, security and economy

matched with rising and desirable expectation of cleaner, safer, healthier environment to people, both affected and benefited by its activities.

(iv) Discharging all functions of Planning and Coordination relating to Intra-State Transmission System with:- (a) Central Transmission Utility (b) Central Electricity Authority (c) Central Government (d) State Government (e) Distribution Corporation (HPSEB Ltd.) (f) HPPCL (g) Independent Power Producers (h) Central Power Sector Utilities (i) any other person notified by State Government in this behalf.

(c) Functions :(i) Construction of all new sub-stations of 66 kV and above.(ii) Construction/Laying of all new transmission lines of 66 kV and above.(iii) Formulation, Updation and Execution of Transmission Master Plan for the State for strengthening

of Transmission net work and evacuation of power including new works under schemes already submitted by the HPSEB Ltd. Under this plan, to financial institutions for funding and where loan

BOARD'S REPORT 2019

6

M/s Manish K. Gupta & AssociatesChartered Accountants

New Shimla.

ICICI Bank, The Mall, Shimla.PNB, The Mall, Shimla.

6.7.

5

Sh. Anil Kumar Khachi, IASChief Secretary to the Govt. of Himachal Pradesh

Sh. Ram Subhag Singh, IASAdditional Chief Secretary-(MPP & Power)

Sh. Sanjay Kundu, IPS, Pr. Secretary to Hon’ble CM

Sh.Prabodh Saxena, IAS, Pr. Secretary (Finance) to the Govt. of Himachal Pradesh

Sh. Devesh Kumar, IASManaging Director, HPPCL

Er. Ravinder Kumar SharmaMD, HPPTCL

Er. Keshav Singh AttriDirector (P&C), HPPTCL

Er. Arun KumarDirector (Projects), HPPTCL

1

Chairperson

2

Director

3

Director

4

Director

5

Director

6

Managing Director

7

Director

8

Director

Board of Directors

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

Dear Members,Your Directors are pleased to present the Eleventh Annual Report of the Company for the year ended March 31, 2019 along with the Financial Statement (Annual Accounts), Report of Auditors and Comments of the Comptroller and Auditor General of India. 1. Genesis H.P. Power Transmission Corporation Limited (HPPTCL), an undertaking of Government of

Himachal Pradesh was established on 27.08.2008 with a view to strengthen the Transmission Network in Himachal Pradesh and to facilitate evacuation of power from upcoming Generating Plants. The tasks entrusted to Corporation by GoHP inter-alia included execution of all NEW WORKS – both Transmission Lines and Sub-Stations of 66 kV and above Voltage Ratings, Formulation, Updation, Execution of Transmission Master Plan of HP for Strengthening of Transmission Network for Evacuation of Power, besides coordinating the transmission related issues with CTU, CEA, MOP (GOI), HP Government and HPSEBL. HPPTCL is also responsible for planning and coordination of transmission related issues with IPPs, CPSUs, State PSUs, HPPCL and other State/ Central Government Agencies. The Government of Himachal Pradesh vide Notification No. MPP-A(3) -1/2001-IV dated 10.06.2010 has declared HPPTCL as State Transmission Utility (STU).

2. Mission, Objectives and Functions :(a) Mission : Formulation, updation and execution of integrated Transmission master plan for strengthening of

Transmission Network and evacuation of power from Small, Medium and Large Hydro Generating Stations to the Load Centers/ CTU points.

(b) Objectives : (i) Expanding transmission network in the State in an efficient, co-ordinated and economical manner.(ii) Efficient operation and maintenance of transmission system and aspiring for minimum down time.(iii) Completion of Transmission system planning to ensure principles of reliability, security and economy

matched with rising and desirable expectation of cleaner, safer, healthier environment to people, both affected and benefited by its activities.

(iv) Discharging all functions of Planning and Coordination relating to Intra-State Transmission System with:- (a) Central Transmission Utility (b) Central Electricity Authority (c) Central Government (d) State Government (e) Distribution Corporation (HPSEB Ltd.) (f) HPPCL (g) Independent Power Producers (h) Central Power Sector Utilities (i) any other person notified by State Government in this behalf.

(c) Functions :(i) Construction of all new sub-stations of 66 kV and above.(ii) Construction/Laying of all new transmission lines of 66 kV and above.(iii) Formulation, Updation and Execution of Transmission Master Plan for the State for strengthening

of Transmission net work and evacuation of power including new works under schemes already submitted by the HPSEB Ltd. Under this plan, to financial institutions for funding and where loan

BOARD'S REPORT 2019

6

M/s Manish K. Gupta & AssociatesChartered Accountants

New Shimla.

ICICI Bank, The Mall, Shimla.PNB, The Mall, Shimla.

6.7.

5

Sh. Anil Kumar Khachi, IASChief Secretary to the Govt. of Himachal Pradesh

Sh. Ram Subhag Singh, IASAdditional Chief Secretary-(MPP & Power)

Sh. Sanjay Kundu, IPS, Pr. Secretary to Hon’ble CM

Sh.Prabodh Saxena, IAS, Pr. Secretary (Finance) to the Govt. of Himachal Pradesh

Sh. Devesh Kumar, IASManaging Director, HPPCL

Er. Ravinder Kumar SharmaMD, HPPTCL

Er. Keshav Singh AttriDirector (P&C), HPPTCL

Er. Arun KumarDirector (Projects), HPPTCL

1

Chairperson

2

Director

3

Director

4

Director

5

Director

6

Managing Director

7

Director

8

Director

Board of Directors

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

87

agreements have not yet been signed.(iv) Planning and Co-ordination with the IPPs/CPSUs/State PSUs and other departments or Organizations

or Agencies of Central Govt. and State Govt., HPSEBL and HPPCL with regard to all transmission issues.

(v) Any other matter or subject that the State Govt. may specifically assign to the Corporation from time to time.

(vi) To provide non-discriminatory Open Access to its Transmission System for use by:- (a) any Licensee or Generating Company on payment of the Transmission Charges; or (b) any Consumer as and when such Open Access is provided by the State Commission under Sub-

Section (2) of Section 42 on payment.

3. Works : Under ADB HP Clean Energy Transmission Investment Program (HPCETIP)

tha) All 6 No. works of ADB Tranche-I amounting to Rs.682 Crores have been completed on 30 Sept, 2019 but work for two towers of 400KV Gumma LILO in Shimla has been held up due to local dispute.

b) 9 No. works of ADB Tranche-II amounting to Rs.561.27 Crore have been awarded and five of these thworks are substantially complete. other works are in advanced stages of completion on date ie 27

thJanuary 2019 and are being targeted for completion by 30 June 2020, the date of closure of Tranche-II of HPCETIP.

c) Loan Agreement for ADB Tranche –III has been signed during the year 2018-19.d) 9 No. works of ADB Tranche-III amounting to Rs. 483.44 Crore have been awarded and are being

thmonitored continuously for their completion by June 30 2021, date of closure of the HPCETIP.the) Loan amount of Rs.1339.38 Crore has been drawn from ADB till today i.e. upto 27 January 2020.

Under Green Energy Corridor -I Scheme of MNRE and KFWa) 10 No. works of KFW GEC-I amounting to Rs.461.92 Crore have been awarded and one work is in

thadvanced stages of award on 27 January 2020. Three of these projects are substantially complete whereas other projects are in advance stages of completion. These are being monitored continuously so as to ensure completion by December 2020, date of closure of the GEC-1 Funding arrangement.

thb) Loan amounting to Rs.65.47 Crore has been drawn from KFW as on 27 January 2020.

Under Funding From Domestic Financial Institutionsa) 2 No. works against REC funding for Kala Amb Sub Station and 220 kV line amounting to Rs.74 crore

have been awarded.

Projects Completed and Commissioneda) 33/220 KV Phojal Sub Station and 220 KV line in Kullu has been energized during June, 2016.b) 220 KV Kashang Bhaba line has been energized during June, 2016.c) 220/66/22KV Bhoktoo Sub Station has been energized during March, 2017.d) 33/220KV Karian Sub Station and 220 KV line from Karian to Rajera has been energized during April,

2019.the) 220KV D/C Transmission Line from Charor to Banala commissioned on 24 July, 2019.

f) 33/132 KV, 1x25/31.5 Substation at Pandoh+LILO of one circuit of 132 kV Bajaura-Kangoo D/C thTransmission line (Mandi) commissioned on 24 August, 2019.

thg) 33/132 KV, 2x25/31.5 MVA Substation at (Chambi, Shahpur) Kangra commissioned on 28 August, 2019.

h) 400/220/66 KV,2x31.5+2x100 MVA GIS Substation Wangtoo with LILO D/C Karcham to Kalaamb Transmission Line commissioned during September,2019.

4. Human Resources : The total approved staff strength of the Corporation is 490 and as on date 198 employees apart from 3

Whole Time Directors (including MD) are on the rolls. The staff comprises of HPPTCL's own cadre, staff on secondment basis from HPSEBL and other departments.

Your Company gives utmost importance for the enrichment of skills and towards this, 50 number of thexecutives have been sent on external training programmes till date ie upto 27 January 2020. On site

trainings too have been imparted by the contractor's engineers for the operation and maintenance of the equipment being installed and by the IT department alongwith contractors for successful implementation of the SAP.

5. Corporate Social Responsibility initiatives taken during the year Corporate Social Responsibility Committee has been constituted as per provisions of the Companies

rdAct, 2013. The 3 meeting of the CSR Committee was held on 17.01.2020 for the financial year 2018-19. In meeting it was concluded that the Company has not yet come into full commercial operation, hence provisions are not applicable.

6. Environment : HPPTCL is formulating its own Environment & Social Safeguard policy. All the Environment

Management Plans (EMP) of the State Government and of the Company are proposed to be implemented diligently with a view to ensure safeguarding environment and improving the same wherever possible.

7. Rehabilitation and Resettlement Continuing with its commitment to improve the lives of affected people compared to pre-project

scenario, HPPTCL has adopted its standard Resettlement and Rehabilitation (R&R) Plan while striving to prepare and implement project specific RR Plans, which incorporate additionally negotiated packages and compensations with the aim to provide clarity, focus and ease of implementation.

8. Accounts The Financial Statement (Annual Accounts) consisting of Statement of Profit & Loss, Expenses

attributable to construction, Cash flow statement for the period ended 31st March, 2019 and Balance Sheet along with notes to accounts as on that date is annexed along with report of Statutory Auditors and comments of CAG of India thereon for the financial year 2018-19 along with Management replies on comments of auditors and CAG Report.

9. Internal Control Systems: The Company has adequate internal control systems and the transactions/processes are guided by

delegation of powers, documented policies, guidelines etc. of the Company as well as of the State Govt. In order to ensure that all checks and balances are in place and internal control systems are in order, regular internal audit is conducted by the firms of Chartered Accountants.

10. Dividend The Company has not yet started full commercial operations and has not earned sufficient revenue,

therefore, the information may kindly be treated as nil.

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agreements have not yet been signed.(iv) Planning and Co-ordination with the IPPs/CPSUs/State PSUs and other departments or Organizations

or Agencies of Central Govt. and State Govt., HPSEBL and HPPCL with regard to all transmission issues.

(v) Any other matter or subject that the State Govt. may specifically assign to the Corporation from time to time.

(vi) To provide non-discriminatory Open Access to its Transmission System for use by:- (a) any Licensee or Generating Company on payment of the Transmission Charges; or (b) any Consumer as and when such Open Access is provided by the State Commission under Sub-

Section (2) of Section 42 on payment.

3. Works : Under ADB HP Clean Energy Transmission Investment Program (HPCETIP)

tha) All 6 No. works of ADB Tranche-I amounting to Rs.682 Crores have been completed on 30 Sept, 2019 but work for two towers of 400KV Gumma LILO in Shimla has been held up due to local dispute.

b) 9 No. works of ADB Tranche-II amounting to Rs.561.27 Crore have been awarded and five of these thworks are substantially complete. other works are in advanced stages of completion on date ie 27

thJanuary 2019 and are being targeted for completion by 30 June 2020, the date of closure of Tranche-II of HPCETIP.

c) Loan Agreement for ADB Tranche –III has been signed during the year 2018-19.d) 9 No. works of ADB Tranche-III amounting to Rs. 483.44 Crore have been awarded and are being

thmonitored continuously for their completion by June 30 2021, date of closure of the HPCETIP.the) Loan amount of Rs.1339.38 Crore has been drawn from ADB till today i.e. upto 27 January 2020.

Under Green Energy Corridor -I Scheme of MNRE and KFWa) 10 No. works of KFW GEC-I amounting to Rs.461.92 Crore have been awarded and one work is in

thadvanced stages of award on 27 January 2020. Three of these projects are substantially complete whereas other projects are in advance stages of completion. These are being monitored continuously so as to ensure completion by December 2020, date of closure of the GEC-1 Funding arrangement.

thb) Loan amounting to Rs.65.47 Crore has been drawn from KFW as on 27 January 2020.

Under Funding From Domestic Financial Institutionsa) 2 No. works against REC funding for Kala Amb Sub Station and 220 kV line amounting to Rs.74 crore

have been awarded.

Projects Completed and Commissioneda) 33/220 KV Phojal Sub Station and 220 KV line in Kullu has been energized during June, 2016.b) 220 KV Kashang Bhaba line has been energized during June, 2016.c) 220/66/22KV Bhoktoo Sub Station has been energized during March, 2017.d) 33/220KV Karian Sub Station and 220 KV line from Karian to Rajera has been energized during April,

2019.the) 220KV D/C Transmission Line from Charor to Banala commissioned on 24 July, 2019.

f) 33/132 KV, 1x25/31.5 Substation at Pandoh+LILO of one circuit of 132 kV Bajaura-Kangoo D/C thTransmission line (Mandi) commissioned on 24 August, 2019.

thg) 33/132 KV, 2x25/31.5 MVA Substation at (Chambi, Shahpur) Kangra commissioned on 28 August, 2019.

h) 400/220/66 KV,2x31.5+2x100 MVA GIS Substation Wangtoo with LILO D/C Karcham to Kalaamb Transmission Line commissioned during September,2019.

4. Human Resources : The total approved staff strength of the Corporation is 490 and as on date 198 employees apart from 3

Whole Time Directors (including MD) are on the rolls. The staff comprises of HPPTCL's own cadre, staff on secondment basis from HPSEBL and other departments.

Your Company gives utmost importance for the enrichment of skills and towards this, 50 number of thexecutives have been sent on external training programmes till date ie upto 27 January 2020. On site

trainings too have been imparted by the contractor's engineers for the operation and maintenance of the equipment being installed and by the IT department alongwith contractors for successful implementation of the SAP.

5. Corporate Social Responsibility initiatives taken during the year Corporate Social Responsibility Committee has been constituted as per provisions of the Companies

rdAct, 2013. The 3 meeting of the CSR Committee was held on 17.01.2020 for the financial year 2018-19. In meeting it was concluded that the Company has not yet come into full commercial operation, hence provisions are not applicable.

6. Environment : HPPTCL is formulating its own Environment & Social Safeguard policy. All the Environment

Management Plans (EMP) of the State Government and of the Company are proposed to be implemented diligently with a view to ensure safeguarding environment and improving the same wherever possible.

7. Rehabilitation and Resettlement Continuing with its commitment to improve the lives of affected people compared to pre-project

scenario, HPPTCL has adopted its standard Resettlement and Rehabilitation (R&R) Plan while striving to prepare and implement project specific RR Plans, which incorporate additionally negotiated packages and compensations with the aim to provide clarity, focus and ease of implementation.

8. Accounts The Financial Statement (Annual Accounts) consisting of Statement of Profit & Loss, Expenses

attributable to construction, Cash flow statement for the period ended 31st March, 2019 and Balance Sheet along with notes to accounts as on that date is annexed along with report of Statutory Auditors and comments of CAG of India thereon for the financial year 2018-19 along with Management replies on comments of auditors and CAG Report.

9. Internal Control Systems: The Company has adequate internal control systems and the transactions/processes are guided by

delegation of powers, documented policies, guidelines etc. of the Company as well as of the State Govt. In order to ensure that all checks and balances are in place and internal control systems are in order, regular internal audit is conducted by the firms of Chartered Accountants.

10. Dividend The Company has not yet started full commercial operations and has not earned sufficient revenue,

therefore, the information may kindly be treated as nil.

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

10 9

11. Other Equity Other Equity represent unutilized capital grant received from MNRE, net of cumulative loss set off. As

such the information may be treated as nil.

12. Change in the nature of business, if any. No such changes occurred during the year.

13. Material changes and commitments, if any, affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relate and the date of the report

No such changes occurred during the year.

14. Significant and material orders passed by the Regulators or Courts or Tribunals impacting the Going Concern status and Company's operations

PGCIL have raised bills amounting to Rs 28,36,93,796.00 up to November, 2019 due to non-commissioning of Charor-Banala line based on the tariff finalized by CERC, Charor-Banala line is downstream asset to Banala Substation of PGCIL.

15. Subsidiary/Joint Ventures/Associate Companies The Company has not entered into any agreement/MOU to create any Joint Venture/Subsidiary

Company(s) during the year. Hence, the information may kindly be treated as nil.

16. Performance and Financial Position of each of the Subsidiaries, Associates and Joint Venture Companies included in the Consolidated Financial Statement.

Not applicable.

17. Deposits The Company has not accepted deposits. Hence the information is nil.

18. Statutory Auditors and Auditor's Report:- M/S Manish K Gupta & Associates, 239, The Mall Solan-173212 were appointed as the Statutory

Auditors of the Company for the financial year ended 31st March, 2019 on 09-10-2018 by the Comptroller & Auditor General of India. The Auditors have audited the accounts and submitted their report on 28.09.2019, which is annexed to accounts.

19. Share Capital The Authorized Share Capital of the Company as on 31.03.2019 was Rs.300 Crore (Rs. Three hundred

Crore only), whereas, the issued, subscribed & paid up capital of the Company was Rs.294,45,34,000/-th. After the recommendations of the Board of Directors of the Company in 40 meeting held on dated

28-11-2018, the State Govt. has approved the enhancement of Authorized Share Capital of the Company from Rs. 300 Crore to Rs.350 Crore, vide letter No. MPP-(10)-1/2013 dated 07-03-2019, but since being Company Non- Compliant, it is not in a position to take up the matter for the approval of the Shareholders in the AGM/EGM for increasing the Authorized Share Capital, as the necessary documentation for such increase shall not be accepted by the Ministry of Corporate Affairs through online system till the Company becomes compliant. Other details are as under:-

A) Issue of equity shares with differential rights The information is nil.

B) Issue of sweat equity shares The information is nil.C) Issue of employee stock options The information is nil.D) Provision of money by Company for purchase of its own shares by employees or by trustees for

the benefit of employees The information is nil.

20. Extract of the Annual Return The information pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies

(Management and Administration) Rules, 2014 is appended hereunder in annexure MGT-9.

21. The Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo as per Rule 8 of the Companies (Accounts) Rules, 2014.

a) Conservation of Energy The Company has adopted various guidelines for conservation of energy issued by GOI/GOHP from

time to time.b) Foreign Exchange Earning and Out-Go There was foreign exchange out-go of USD 145211.89/- during the F.Y. 2018-19.c) Technology Absorption The Company worked closely with Vendors and Contractors for development of systems for transport

of the transformers over narrow low capacity bridges.

22. DirectorsA) The Board of Directors

1.1 Size of the Board HPPTCL is a Government Company within the meaning of the Companies Act. The entire

shareholding is owned by the Government of Himachal Pradesh and Himachal Pradesh Infrastructure Development Board (HPIDB), a Board of the State Govt. As per Articles of Association, the power to appoint Directors vests in the Government of H.P. The Strength of the Board shall not be less than 3 and not more than 10. These numbers include all whole-time and part-time Nominee Directors.

1.2 Composition & Tenure of the Board As on 31.03.2019, the Board comprised of 7 (Seven) members, consisting of one Managing

Director, one whole-time Director and other part-time Nominee Directors representing the Government of H.P./HPPCL.

1.3 Board Meetings The Board Meetings are held normally at Shimla to facilitate full participation by the Directors.

During the FY 2018-19, 05 Board Meetings have been held on dated 20/04/2018, 30/06/2018, 12/09/2018, 28/11/2018 and 07/2/2019 and majority of the Directors have attended these meetings.

1.4. Corporate Governance HPPTCL continuously strives to bring the best practices expected of us by all the stakeholders in the

conduct of business. The Company is a Private Limited (State Government Company) and unlisted Company as on date and it is our endeavour to adhere to the latest provisions of the Companies Act, 2013.

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11. Other Equity Other Equity represent unutilized capital grant received from MNRE, net of cumulative loss set off. As

such the information may be treated as nil.

12. Change in the nature of business, if any. No such changes occurred during the year.

13. Material changes and commitments, if any, affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relate and the date of the report

No such changes occurred during the year.

14. Significant and material orders passed by the Regulators or Courts or Tribunals impacting the Going Concern status and Company's operations

PGCIL have raised bills amounting to Rs 28,36,93,796.00 up to November, 2019 due to non-commissioning of Charor-Banala line based on the tariff finalized by CERC, Charor-Banala line is downstream asset to Banala Substation of PGCIL.

15. Subsidiary/Joint Ventures/Associate Companies The Company has not entered into any agreement/MOU to create any Joint Venture/Subsidiary

Company(s) during the year. Hence, the information may kindly be treated as nil.

16. Performance and Financial Position of each of the Subsidiaries, Associates and Joint Venture Companies included in the Consolidated Financial Statement.

Not applicable.

17. Deposits The Company has not accepted deposits. Hence the information is nil.

18. Statutory Auditors and Auditor's Report:- M/S Manish K Gupta & Associates, 239, The Mall Solan-173212 were appointed as the Statutory

Auditors of the Company for the financial year ended 31st March, 2019 on 09-10-2018 by the Comptroller & Auditor General of India. The Auditors have audited the accounts and submitted their report on 28.09.2019, which is annexed to accounts.

19. Share Capital The Authorized Share Capital of the Company as on 31.03.2019 was Rs.300 Crore (Rs. Three hundred

Crore only), whereas, the issued, subscribed & paid up capital of the Company was Rs.294,45,34,000/-th. After the recommendations of the Board of Directors of the Company in 40 meeting held on dated

28-11-2018, the State Govt. has approved the enhancement of Authorized Share Capital of the Company from Rs. 300 Crore to Rs.350 Crore, vide letter No. MPP-(10)-1/2013 dated 07-03-2019, but since being Company Non- Compliant, it is not in a position to take up the matter for the approval of the Shareholders in the AGM/EGM for increasing the Authorized Share Capital, as the necessary documentation for such increase shall not be accepted by the Ministry of Corporate Affairs through online system till the Company becomes compliant. Other details are as under:-

A) Issue of equity shares with differential rights The information is nil.

B) Issue of sweat equity shares The information is nil.C) Issue of employee stock options The information is nil.D) Provision of money by Company for purchase of its own shares by employees or by trustees for

the benefit of employees The information is nil.

20. Extract of the Annual Return The information pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies

(Management and Administration) Rules, 2014 is appended hereunder in annexure MGT-9.

21. The Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo as per Rule 8 of the Companies (Accounts) Rules, 2014.

a) Conservation of Energy The Company has adopted various guidelines for conservation of energy issued by GOI/GOHP from

time to time.b) Foreign Exchange Earning and Out-Go There was foreign exchange out-go of USD 145211.89/- during the F.Y. 2018-19.c) Technology Absorption The Company worked closely with Vendors and Contractors for development of systems for transport

of the transformers over narrow low capacity bridges.

22. DirectorsA) The Board of Directors

1.1 Size of the Board HPPTCL is a Government Company within the meaning of the Companies Act. The entire

shareholding is owned by the Government of Himachal Pradesh and Himachal Pradesh Infrastructure Development Board (HPIDB), a Board of the State Govt. As per Articles of Association, the power to appoint Directors vests in the Government of H.P. The Strength of the Board shall not be less than 3 and not more than 10. These numbers include all whole-time and part-time Nominee Directors.

1.2 Composition & Tenure of the Board As on 31.03.2019, the Board comprised of 7 (Seven) members, consisting of one Managing

Director, one whole-time Director and other part-time Nominee Directors representing the Government of H.P./HPPCL.

1.3 Board Meetings The Board Meetings are held normally at Shimla to facilitate full participation by the Directors.

During the FY 2018-19, 05 Board Meetings have been held on dated 20/04/2018, 30/06/2018, 12/09/2018, 28/11/2018 and 07/2/2019 and majority of the Directors have attended these meetings.

1.4. Corporate Governance HPPTCL continuously strives to bring the best practices expected of us by all the stakeholders in the

conduct of business. The Company is a Private Limited (State Government Company) and unlisted Company as on date and it is our endeavour to adhere to the latest provisions of the Companies Act, 2013.

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

12

PARTICULARS OF THE PERSONS WHO ARE/WERE DIRECTORS/SECRETARY OF THE

COMPANY AS ON THE CLOSURE OF FINANCIAL YEAR (2018-19).

11

Sr.

No

Name USUAL ADDRESS DATE OF BIRTH

DATE OF APPOINTMENT

DATE OF CESSATION (after closure of financial year : If any)

1.

Sh. Brij Kumar Agarwal, IAS

House No.1, GF, Type -VI, Brockhurst, Shimla -2, Himachal Pradesh

15/06/61

30/09/2018

In position as Chairperson

(Ceased

on 02/09/2019)

2.

Dr. Shrikant Baldi, IAS

House No.17, Type - 6, Govt. Officers' Colony, Mehli, Kasumpti Shimla 171009

12.12.59

25.07.2011

In position as Nominee Director

3.

Sh. Anil Kumar Khachi, IAS

Set No. -2, Type –

VI, IAS Colony, Kasumpti, Shimla, H.P. -171009.

22/06/63

14/05/2018

In position as Nominee Director

(Ceased on 01/08/2019)

4.

Sh. Prabodh Saxena, IAS

A-62, Nivedita Kunj, Sector-10, R K Puram, Sect-5, South West Delhi, Delhi - 110022

07/03/65

04/10/2018

In position as Nominee Director

5.

Dr. Ajay Sharma, IAS

Kufridhar, P.O -

Ghanhatti, Totu, Shimla, Himachal Pradesh -171011.

21/01/63

23/02/2019

In position as Nominee Director

(Ceased on 02/07/2019)

6.

Sh. Ravinder Kumar Sharma

Type-IV, HPSEB

Colony, Ground Floor, Keleston Harvington, Shimla 171001 (H.P.).

06/03/61

04/01/2018

In position as Managing Director

7.

Sh. Keshav Singh Attri

House No. -1378, Near Municipal Bhawan, Sector-

68, (P.O. -

Chandigarh Sector-

62), Mohali, Punjab, India 160062

12.03.61

14/03/2017

In position as Whole Time Director.

The Board noted the contributions made by the Chairman/Directors during their tenure and placed

on record its highest appreciation for their services

PARTICULARS OF CHANGE IN THE PERSONS WHO ARE/WERE DIRECTORS/

SECRETARY OF THE COMPANY DURING THE FINANCIAL YEAR (2018-19).

Sr.

No

Name USUAL ADDRESS DATE OF BIRTH

DATE OF APPOINTMENT

DATE OF CESSATION/ APPOINTMENT

1. Sh. Vineet Chawdhry, IAS

Cottage No.2, OldBrockhurst, Opposite Kaira Regency, Chotta Shimla, Shimla, (H.P.)

23.09.58 30.12.2017 Ceased as Chairperson w.e.f. 30/09/2018

2.

Sh. Ram Dass

Dhiman, IAS

House No. -3, Type -6 Officers Colony, Kasumpti, Shimla 171009 (H.P.).

05.12.62

29/12/2017

Ceased as Nominee Director w.e.f. 14/05/2018

3.

Smt. Manisha Nanda, IAS

Block I Type IV, Flat No 5.,Khalini, Forest Officers Colony Near Hanuman Temple,

Shimla (H.P.).171002

26.05.59

27/12/2017

Ceased as Nominee Director w.e.f. 14/05/2018

4.

Sh. Devesh Kumar, IAS

Set No -18, Type -6, Kasumpti, Shimla Urban(T), Shimla 171009 (H.P.).

01.07.74

21.04.2017

Ceased as Nominee Director w.e.f. 18/02/2019

5.

Sh. Tarun Kapoor, IAS

West View, Kelston Estate, Shimla, Himachal Pradesh -171001

23/11/61

14/05/2018

Ceased as Nominee Director w.e.f. 30/09/2018

6.

Sh. Rajesh Singh

82/1, Veer Cottage, Vikas Nagar, Kasumpti, Shimla 171009 HP

31/01/59

25/04/2016

Ceased as

Whole Time Director w.e.f. 30/01/2019

7.

Sh. Brij Kumar Agarwal, IAS

House No.1, GF, Type -VI, Brockhurst, Shimla -2, Himachal Pradesh

15/06/61

30/09/2018

Appointed as as Chairperson w.e.f. 30/09/2018

8.

Sh. Anil Kumar Khachi, IAS

Set No. -2, Type –

VI, IAS Colony, Kasumpti, Shimla, H.P. -171009.

22/06/63

14/05/2018

Appointed as Nominee Director w.e.f. 14/05/2018

9.

Sh. Prabodh Saxena, IAS

A-62, Nivedita Kunj, Sector-10, R K Puram, Sect-5, South West Delhi, Delhi - 110022

07/03/65

04/10/2018

Appointed as Nominee Director w.e.f 04/10/2018

10.

Dr. Ajay Sharma, IAS

Kufridhar, P.O -

Ghanhatti, Totu, Shimla, Himachal Pradesh -171011.

21/01/63

23/02/2019

Appointed as Nominee Director w.e.f 23/02/2019

11.

Sh. Tarun Kapoor, IAS

West View, Kelston Estate, Shimla, Himachal Pradesh -171001

23/11/61

14/05/2018

Appointed as Nominee Director w.e.f 14/05/2018

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

12

PARTICULARS OF THE PERSONS WHO ARE/WERE DIRECTORS/SECRETARY OF THE

COMPANY AS ON THE CLOSURE OF FINANCIAL YEAR (2018-19).

11

Sr.

No

Name USUAL ADDRESS DATE OF BIRTH

DATE OF APPOINTMENT

DATE OF CESSATION (after closure of financial year : If any)

1.

Sh. Brij Kumar Agarwal, IAS

House No.1, GF, Type -VI, Brockhurst, Shimla -2, Himachal Pradesh

15/06/61

30/09/2018

In position as Chairperson

(Ceased

on 02/09/2019)

2.

Dr. Shrikant Baldi, IAS

House No.17, Type - 6, Govt. Officers' Colony, Mehli, Kasumpti Shimla 171009

12.12.59

25.07.2011

In position as Nominee Director

3.

Sh. Anil Kumar Khachi, IAS

Set No. -2, Type –

VI, IAS Colony, Kasumpti, Shimla, H.P. -171009.

22/06/63

14/05/2018

In position as Nominee Director

(Ceased on 01/08/2019)

4.

Sh. Prabodh Saxena, IAS

A-62, Nivedita Kunj, Sector-10, R K Puram, Sect-5, South West Delhi, Delhi - 110022

07/03/65

04/10/2018

In position as Nominee Director

5.

Dr. Ajay Sharma, IAS

Kufridhar, P.O -

Ghanhatti, Totu, Shimla, Himachal Pradesh -171011.

21/01/63

23/02/2019

In position as Nominee Director

(Ceased on 02/07/2019)

6.

Sh. Ravinder Kumar Sharma

Type-IV, HPSEB

Colony, Ground Floor, Keleston Harvington, Shimla 171001 (H.P.).

06/03/61

04/01/2018

In position as Managing Director

7.

Sh. Keshav Singh Attri

House No. -1378, Near Municipal Bhawan, Sector-

68, (P.O. -

Chandigarh Sector-

62), Mohali, Punjab, India 160062

12.03.61

14/03/2017

In position as Whole Time Director.

The Board noted the contributions made by the Chairman/Directors during their tenure and placed

on record its highest appreciation for their services

PARTICULARS OF CHANGE IN THE PERSONS WHO ARE/WERE DIRECTORS/

SECRETARY OF THE COMPANY DURING THE FINANCIAL YEAR (2018-19).

Sr.

No

Name USUAL ADDRESS DATE OF BIRTH

DATE OF APPOINTMENT

DATE OF CESSATION/ APPOINTMENT

1. Sh. Vineet Chawdhry, IAS

Cottage No.2, OldBrockhurst, Opposite Kaira Regency, Chotta Shimla, Shimla, (H.P.)

23.09.58 30.12.2017 Ceased as Chairperson w.e.f. 30/09/2018

2.

Sh. Ram Dass

Dhiman, IAS

House No. -3, Type -6 Officers Colony, Kasumpti, Shimla 171009 (H.P.).

05.12.62

29/12/2017

Ceased as Nominee Director w.e.f. 14/05/2018

3.

Smt. Manisha Nanda, IAS

Block I Type IV, Flat No 5.,Khalini, Forest Officers Colony Near Hanuman Temple,

Shimla (H.P.).171002

26.05.59

27/12/2017

Ceased as Nominee Director w.e.f. 14/05/2018

4.

Sh. Devesh Kumar, IAS

Set No -18, Type -6, Kasumpti, Shimla Urban(T), Shimla 171009 (H.P.).

01.07.74

21.04.2017

Ceased as Nominee Director w.e.f. 18/02/2019

5.

Sh. Tarun Kapoor, IAS

West View, Kelston Estate, Shimla, Himachal Pradesh -171001

23/11/61

14/05/2018

Ceased as Nominee Director w.e.f. 30/09/2018

6.

Sh. Rajesh Singh

82/1, Veer Cottage, Vikas Nagar, Kasumpti, Shimla 171009 HP

31/01/59

25/04/2016

Ceased as

Whole Time Director w.e.f. 30/01/2019

7.

Sh. Brij Kumar Agarwal, IAS

House No.1, GF, Type -VI, Brockhurst, Shimla -2, Himachal Pradesh

15/06/61

30/09/2018

Appointed as as Chairperson w.e.f. 30/09/2018

8.

Sh. Anil Kumar Khachi, IAS

Set No. -2, Type –

VI, IAS Colony, Kasumpti, Shimla, H.P. -171009.

22/06/63

14/05/2018

Appointed as Nominee Director w.e.f. 14/05/2018

9.

Sh. Prabodh Saxena, IAS

A-62, Nivedita Kunj, Sector-10, R K Puram, Sect-5, South West Delhi, Delhi - 110022

07/03/65

04/10/2018

Appointed as Nominee Director w.e.f 04/10/2018

10.

Dr. Ajay Sharma, IAS

Kufridhar, P.O -

Ghanhatti, Totu, Shimla, Himachal Pradesh -171011.

21/01/63

23/02/2019

Appointed as Nominee Director w.e.f 23/02/2019

11.

Sh. Tarun Kapoor, IAS

West View, Kelston Estate, Shimla, Himachal Pradesh -171001

23/11/61

14/05/2018

Appointed as Nominee Director w.e.f 14/05/2018

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

151414

thPARTICULARS OF DIRECTORS/SECRETARY AS ON DATE (27 Jan 2020).· Sh. Anil Kumar Khachi, IAS, Chief Secretary to Govt. of Himachal Pradesh-Chairperson · Sh. Ram Subhag Singh, IAS, Additional Chief Secretary (MPP & Power) - Director· Sh. Sanjay Kundu, IPS, Pr. Secretary to the Hon'ble CM - Director· Sh. Prabodh Saxena, IAS, Pr. Secretary (Finance) to GoHP - Director · Sh. Devesh Kumar, IAS, MD, HPPCL– Director· Er. Ravinder Kumar Sharma - Managing Director· Er. Keshav Singh Attri -Director (P&C) – Director · Er. Arun Kumar -Director (Projects) – Director

Since, the Company could not comply to file the E Form Active-INC 22 A due to non-appointment of Company Secretary and also pendency of filing of Annual Accounts for the FY 2017-18 within stipulated period, as such, the filing of appointments of the present worthy Chief Secretary as Chairman and also of the Directors, Additional Chief Secretary, (Power), Principal Secretary to the Hon'ble CM, and the MD, HPPCL could not be filed. And as per Company Master Data, only the names of four (4) Directors are appearing.

23. Audit CommitteeAlthough, the provisions of the Companies Act, 2013 with respect to constitution of Audit Committee are not applicable, yet in order to have good Corporate Governance, the Audit Committee has been constituted with the following Directors of the Board.i) Additional Chief Secretary/ Pr. Secretary (MPP & Power) ii) Additional Chief Secretary/Pr. Secretary (Finance) iii) Managing Director, HPPTCL.

24. Details of establishment of Vigil Mechanism Committee for Directors and employeesThe Vigil Mechanism Committee has been established with the approval of the Board. However, the Company has not received any reference/complaint against any of the Directors or Employees of the Company during the said financial year.

25. Nomination and Remuneration Committee

HPPTCL being Private Company, the provisions are not applicable.

26. Particulars of loans, guarantees or investments under Section 186

The information is nil.

27. Particulars of contracts or arrangements with related parties

The information is nil.

28. Secretarial Audit Report

Not Applicable.

29. Explanations or comments by the Board on every qualification, reservation or adverse

remark or disclaimer made—

(I) By the Auditor in his Report:

Replies to the Auditor's Observations/Report have been given in the Annexures of the Financial

Statement (Annual Accounts), where the Board Report is being annexed.

(II) By the Secretarial Auditor in his report: ---

Not Applicable.

30. Risk Management Policy

The information is nil.

31. Directors' Responsibilities Statement

In accordance with the provisions of Section 134(5) of the Companies Act, 2013, the Board hereby

13

submits its responsibility Statement:—

(a) In the preparation of the Financial Statement (annual accounts), the applicable accounting

standards had been followed along with proper explanation relating to material departures;

(b) the Directors had selected such accounting policies and applied them consistently and made

judgements and estimates that are reasonable and prudent so as to give a true and fair view of

the state of affairs of the Company at the end of the financial year and of the profit and loss of

the Company for that period;

(c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting

records in accordance with the provisions of this Act for safeguarding the assets of the

company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the Financial Statement (annual accounts) on going concern

basis; and

(e) the Directors had devised proper systems to ensure compliance with the provisions of all

applicable laws and that such systems were adequate and operating effectively.

32. Company's policy on Director's appointment and remuneration including criteria for

determining qualifications, positive attributes, independence of a director and other

matters provided under sub-section (3) of section 178

Since being HPPTCL Company entirely owned by the State Govt., the subject matter is regulated

as per Govt. notifications issued from time to time.

33. Particulars of employees pursuant to Section 217 (2a) of the Companies Act, 1956 and now

as per the Companies Act, 2013.

The information is NIL.

34. Other information:-

There is no decision to buy back its shares during the year under report as per the Companies Act,

2013.

35. Acknowledgements:-

Your Directors acknowledge the support provided by the State Govt. and its Departments such as

Department of MPP & Power, Director of Energy, Department of Finance, Department of Forests,

HPERC, HPSEBL, HPPCL Pollution Control Board etc. The Board of Directors also acknowledges

with thanks the guidance and help extended by various Ministries/Departments of the Government

of India, Central Electricity Authority, and Financial Institutions, such as ADB,KFW, PFC, REC and

Banks etc.

The Board conveys its gratitude to the outgoing Directors for the services rendered during their

tenure. The Directors further place on record, its appreciation to the officers of HPSEBL and other

agencies for their institutional support. The Directors would also like to thank the office of A.G. H.P.,

who has made efforts in conducting and finalizing the audit report and arranging comments of the

Comptroller and Auditor General of India on Financial Statement (annual accounts) of the

Company.

Last but not least, the Board commends the work and efforts put in by the employees of the

Corporation including the employees on deputation/secondment at all levels.

Thanking you,

For and on behalf of Board of Directors

Sd/- Sd/- Er. Keshav Singh Attri Er. Ravinder Kumar Sharma Director (P & C) Managing Director

Place: Shimla

Dated: 06.02.2020

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

151414

thPARTICULARS OF DIRECTORS/SECRETARY AS ON DATE (27 Jan 2020).· Sh. Anil Kumar Khachi, IAS, Chief Secretary to Govt. of Himachal Pradesh-Chairperson · Sh. Ram Subhag Singh, IAS, Additional Chief Secretary (MPP & Power) - Director· Sh. Sanjay Kundu, IPS, Pr. Secretary to the Hon'ble CM - Director· Sh. Prabodh Saxena, IAS, Pr. Secretary (Finance) to GoHP - Director · Sh. Devesh Kumar, IAS, MD, HPPCL– Director· Er. Ravinder Kumar Sharma - Managing Director· Er. Keshav Singh Attri -Director (P&C) – Director · Er. Arun Kumar -Director (Projects) – Director

Since, the Company could not comply to file the E Form Active-INC 22 A due to non-appointment of Company Secretary and also pendency of filing of Annual Accounts for the FY 2017-18 within stipulated period, as such, the filing of appointments of the present worthy Chief Secretary as Chairman and also of the Directors, Additional Chief Secretary, (Power), Principal Secretary to the Hon'ble CM, and the MD, HPPCL could not be filed. And as per Company Master Data, only the names of four (4) Directors are appearing.

23. Audit CommitteeAlthough, the provisions of the Companies Act, 2013 with respect to constitution of Audit Committee are not applicable, yet in order to have good Corporate Governance, the Audit Committee has been constituted with the following Directors of the Board.i) Additional Chief Secretary/ Pr. Secretary (MPP & Power) ii) Additional Chief Secretary/Pr. Secretary (Finance) iii) Managing Director, HPPTCL.

24. Details of establishment of Vigil Mechanism Committee for Directors and employeesThe Vigil Mechanism Committee has been established with the approval of the Board. However, the Company has not received any reference/complaint against any of the Directors or Employees of the Company during the said financial year.

25. Nomination and Remuneration Committee

HPPTCL being Private Company, the provisions are not applicable.

26. Particulars of loans, guarantees or investments under Section 186

The information is nil.

27. Particulars of contracts or arrangements with related parties

The information is nil.

28. Secretarial Audit Report

Not Applicable.

29. Explanations or comments by the Board on every qualification, reservation or adverse

remark or disclaimer made—

(I) By the Auditor in his Report:

Replies to the Auditor's Observations/Report have been given in the Annexures of the Financial

Statement (Annual Accounts), where the Board Report is being annexed.

(II) By the Secretarial Auditor in his report: ---

Not Applicable.

30. Risk Management Policy

The information is nil.

31. Directors' Responsibilities Statement

In accordance with the provisions of Section 134(5) of the Companies Act, 2013, the Board hereby

13

submits its responsibility Statement:—

(a) In the preparation of the Financial Statement (annual accounts), the applicable accounting

standards had been followed along with proper explanation relating to material departures;

(b) the Directors had selected such accounting policies and applied them consistently and made

judgements and estimates that are reasonable and prudent so as to give a true and fair view of

the state of affairs of the Company at the end of the financial year and of the profit and loss of

the Company for that period;

(c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting

records in accordance with the provisions of this Act for safeguarding the assets of the

company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the Financial Statement (annual accounts) on going concern

basis; and

(e) the Directors had devised proper systems to ensure compliance with the provisions of all

applicable laws and that such systems were adequate and operating effectively.

32. Company's policy on Director's appointment and remuneration including criteria for

determining qualifications, positive attributes, independence of a director and other

matters provided under sub-section (3) of section 178

Since being HPPTCL Company entirely owned by the State Govt., the subject matter is regulated

as per Govt. notifications issued from time to time.

33. Particulars of employees pursuant to Section 217 (2a) of the Companies Act, 1956 and now

as per the Companies Act, 2013.

The information is NIL.

34. Other information:-

There is no decision to buy back its shares during the year under report as per the Companies Act,

2013.

35. Acknowledgements:-

Your Directors acknowledge the support provided by the State Govt. and its Departments such as

Department of MPP & Power, Director of Energy, Department of Finance, Department of Forests,

HPERC, HPSEBL, HPPCL Pollution Control Board etc. The Board of Directors also acknowledges

with thanks the guidance and help extended by various Ministries/Departments of the Government

of India, Central Electricity Authority, and Financial Institutions, such as ADB,KFW, PFC, REC and

Banks etc.

The Board conveys its gratitude to the outgoing Directors for the services rendered during their

tenure. The Directors further place on record, its appreciation to the officers of HPSEBL and other

agencies for their institutional support. The Directors would also like to thank the office of A.G. H.P.,

who has made efforts in conducting and finalizing the audit report and arranging comments of the

Comptroller and Auditor General of India on Financial Statement (annual accounts) of the

Company.

Last but not least, the Board commends the work and efforts put in by the employees of the

Corporation including the employees on deputation/secondment at all levels.

Thanking you,

For and on behalf of Board of Directors

Sd/- Sd/- Er. Keshav Singh Attri Er. Ravinder Kumar Sharma Director (P & C) Managing Director

Place: Shimla

Dated: 06.02.2020

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

1716 15

ANNEXURE I TO THE DIRECTOR'S REPORTForm No. MGT-9

EXTRACT OF ANNUAL RETURN AS ON THE FINANCIAL YEAR ENDED ON 31st MARCH, 2019

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of theCompanies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing10% or more of the total turnover of the company shall be stated:-

Sr.No. Name and Description of main products/

services

NIC Code of the

Product/ service

% to total turnover of the company

1 Electricity, gas, steam and air condition supply

40101 100 %

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sr.

No.

Name And

Address Of

The

Company

CIN/GLN Holding/ Subsidiary

/Associate

%of shares held

Applicable Section

1. - - - - -

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

i. Category-wise Share Holding

Category of Shareholders

No. of Shares held at the beginning of the year

No. of Shares held at the end of the year

% Change during the year

Demat Phys ical

Total

% of Total Shares

Dem at

Physical

Total

% of Total Shares

A. Promoter

1) Indian

0

0

0

0

0

0

0

0

-

a)

Individual/ HUF

0

0

0

0

0

0

0

0

-

b) Central

Govt

0

0

0

0

0

0

0

0

-

c)

State Govt.(s)

16604300.00

60.43

18574340

63.08

-

d)

Bodies Corp

0

0

0

0

0

0

0

0

-

e)

Banks / FI

0

0

0

0

0

0

0

0

-

f)

Any Other 10870000 Shares in the name of Himachal Pradesh Infrastructure Development Board (Board of Govt. of H.P.) & 1000 Shares in the name of (5) Sr. Officers of the State Govt. on behalf of the H.P. Govt.

10871000.00

39.57

10871000

36.92

-

Sub-total(A)(1):-

27475300.00

100

29445340

100

-

2)

Foreign

-

a)

NRIs-Individuals

0

0

0

0

0

0

0

0

-

b)

Other-

0

0

0

0

c)

Bodies Corp.

0

0

0

0

0

0

0

0

-

d)

Banks / FI

0

0

0

0

0

0

0

0

-

e)

Any Other….

0

0

0

0

0

0

0

0

-

Sub-total(A)(2):-

-

B.

Public Shareholding

1.

Institutions

1.

Mutual Funds

0

0

0

0

0

0

0

0

-

2.

Banks / FI

0

0

0

0

0

0

0

0

-

3.

Central Govt

0

0

0

0

0

0

0

0

4.

State Govt(s)

0

0

0

0

0

0

0

0

-

5.

Venture Capital Funds

0

0

0

0

0

0

0

0

-

6.

Insurance Companies

0

0

0

0

0

0

0

0

-

7.

FIIs

0

0

0

0

0

0

0

0

-

8.

Foreign Venture Capital Funds

0

0

0

0

0

0

0

0

-

9.

Others (specify)

0

0

0

0

0

0

0

0

-

Sub-total (B)(1)

0

0

0

0

0

0

0

0

-

2. Non Institutions

a) Bodies Corp.(i) Indian

(ii) Overseas

0 0 0 0 0 0 0 0 -

i. CIN

U40101HP2008SGC030950

ii. Registration Date

27/08/2008

iii. Name of the Company

H. P. Power Transmission Corporation Limited

iv. Category/Sub-Category of the Company

Company Limited by shares (A State Govt. Company)

v. Address of the Registered office and contact details

Himfed Bhawan, Below Old MLAs Quarters, Tutikandi, (Panjri), Shimla -171005 (Himachal Pradesh)

vi. Whether listed company

No

vii. Name, Address and Contact details of Registrar and Transfer Agent, if any

NIL

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

1716 15

ANNEXURE I TO THE DIRECTOR'S REPORTForm No. MGT-9

EXTRACT OF ANNUAL RETURN AS ON THE FINANCIAL YEAR ENDED ON 31st MARCH, 2019

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of theCompanies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing10% or more of the total turnover of the company shall be stated:-

Sr.No. Name and Description of main products/

services

NIC Code of the

Product/ service

% to total turnover of the company

1 Electricity, gas, steam and air condition supply

40101 100 %

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sr.

No.

Name And

Address Of

The

Company

CIN/GLN Holding/ Subsidiary

/Associate

%of shares held

Applicable Section

1. - - - - -

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

i. Category-wise Share Holding

Category of Shareholders

No. of Shares held at the beginning of the year

No. of Shares held at the end of the year

% Change during the year

Demat Phys ical

Total

% of Total Shares

Dem at

Physical

Total

% of Total Shares

A. Promoter

1) Indian

0

0

0

0

0

0

0

0

-

a)

Individual/ HUF

0

0

0

0

0

0

0

0

-

b) Central

Govt

0

0

0

0

0

0

0

0

-

c)

State Govt.(s)

16604300.00

60.43

18574340

63.08

-

d)

Bodies Corp

0

0

0

0

0

0

0

0

-

e)

Banks / FI

0

0

0

0

0

0

0

0

-

f)

Any Other 10870000 Shares in the name of Himachal Pradesh Infrastructure Development Board (Board of Govt. of H.P.) & 1000 Shares in the name of (5) Sr. Officers of the State Govt. on behalf of the H.P. Govt.

10871000.00

39.57

10871000

36.92

-

Sub-total(A)(1):-

27475300.00

100

29445340

100

-

2)

Foreign

-

a)

NRIs-Individuals

0

0

0

0

0

0

0

0

-

b)

Other-

0

0

0

0

c)

Bodies Corp.

0

0

0

0

0

0

0

0

-

d)

Banks / FI

0

0

0

0

0

0

0

0

-

e)

Any Other….

0

0

0

0

0

0

0

0

-

Sub-total(A)(2):-

-

B.

Public Shareholding

1.

Institutions

1.

Mutual Funds

0

0

0

0

0

0

0

0

-

2.

Banks / FI

0

0

0

0

0

0

0

0

-

3.

Central Govt

0

0

0

0

0

0

0

0

4.

State Govt(s)

0

0

0

0

0

0

0

0

-

5.

Venture Capital Funds

0

0

0

0

0

0

0

0

-

6.

Insurance Companies

0

0

0

0

0

0

0

0

-

7.

FIIs

0

0

0

0

0

0

0

0

-

8.

Foreign Venture Capital Funds

0

0

0

0

0

0

0

0

-

9.

Others (specify)

0

0

0

0

0

0

0

0

-

Sub-total (B)(1)

0

0

0

0

0

0

0

0

-

2. Non Institutions

a) Bodies Corp.(i) Indian

(ii) Overseas

0 0 0 0 0 0 0 0 -

i. CIN

U40101HP2008SGC030950

ii. Registration Date

27/08/2008

iii. Name of the Company

H. P. Power Transmission Corporation Limited

iv. Category/Sub-Category of the Company

Company Limited by shares (A State Govt. Company)

v. Address of the Registered office and contact details

Himfed Bhawan, Below Old MLAs Quarters, Tutikandi, (Panjri), Shimla -171005 (Himachal Pradesh)

vi. Whether listed company

No

vii. Name, Address and Contact details of Registrar and Transfer Agent, if any

NIL

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

1818 17

ii. Shareholding of Promoters

iii. Change in Promoters' Shareholding:

Sr.

no

Shareholding at the beginning of the year

Cumulative Shareholding during the year

No. of shares

% of total shares of the company

No. of shares

% of total shares of the company

At the beginning of the year

27475300

100%

1970040

100%

Date wise Increase / Decrease in Promoters Share holding during the year specifying the reasons for increase

/ decrease (e.g. allotment / transfer / bonus/ sweat equity

etc):

DATE

NO. OF

SHARES

TO WHOM

ISSUED

REASON

ALLOTMENT

DATE

NO. OF

SHARES

TO WHOM

ISSUED

REASON

30.06.2018 11,70,000 The Governor

of H. P. Allotment to

existing

Shareholders

12.09.2018

8,00,040 The Governor

of H. P. Allotment to

existing

Shareholders

Total 1970040

TRANSFER DATE

NO. OF

SHARES

Transferor

Transferee

30/06/2018

200

Sh. Vidya ChanderPharka, IAS

Sh. Vineet Chawdhry, IAS

30/06/2018

200

Sh. Tarun Shridhar, IAS

Sh. Ram Dass Dhiman, IAS

30/06/2018

200

Sh. ThubdanGomphel Negi, IAS

Smt. Manisha Nanda, IAS

30/06/2018

200

Sh. Devendra Kumar Sharma

Sh. Devesh Kumar, IAS

12/09/2018

200

Sh. Ram Dass Dhiman, IAS

Sh. Tarun Kapoor, IAS

12/09/2018

200

Dr. Shrikant Baldi, IAS

Sh. Anil Kumar Khachi, IAS

12/09/2018

200

Smt. Manisha Nanda, IAS

Dr. Shrikant Baldi, IAS

28/11/2018

200

Sh. Vineet Chawdhry, IAS

Sh. Brij Kumar Agarwal, IAS

28/11/2018

200

Sh. Tarun Kapoor, IAS

Sh. Prabodh Saxena, IAS

At the End of the year

29445340 100 29445340 100

Shareholder's Name

Shareholding at the beginning of the year

Shareholding at the end of the year

No. of Shares

% of total Shares of the company

% of Shares Pledged/

encumbe red to total shares

No. of Shares

% of total Shares of the company

%of Shares Pledged / encumbe red to total shares

% change in share holding during the year

1.

Governor of Himachal Pradesh

16604300

60.43

-

18574340

63.08

-

2.65

2.

Himachal Pradesh Infrastructure Development Board (was not a Promoter at the time of incorporation of Company)

10870000

39.57

-

10870000

36.92

-

-2.65

3.

Sh. Brij Kumar Agarwal, IAS

200

0.00

-

200

0.00

-

-

4.

Dr. Shrikant Baldi, IAS

200

0.00

-

200

0.00

-

-

5.

Sh. Prabodh Saxena, IAS

200

0.00

-

200

0.00

-

-

6.

Sh. Anil Kumar Khachi, IAS

200

0.00

-

200

0.00

-

-

7.

Sh. Devesh Kumar, IAS

200

0.00

-

200

0.00

-

-

27475300

100

29445340

100

Sr. No.

b)

Individuals

(i) Individual shareholders holding nominal share capital upto Rs. 1 lakh

(ii)

Individual shareholders holding nominal share capital in excess of Rs 1 lakh

0

0

0

0

0

0

0

0

-

c) Others(Specify) 0 0 0 0 0 0 0 0 -

Sub-total(B)(2) 0 0 0 0 0 0 0 0 -

TotalPublic Shareholding (B)=(B)(1)+ (B)(2)

0 0 0 0 0 0 0 0 -

C.Shares heldby Custodianfor GDRs&ADRs

0

0

0

0

0

0

0

0

-

GrandTotal

(A+B+C)

27475300.00

100

29445340

100

-

Total

19

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

1818 17

ii. Shareholding of Promoters

iii. Change in Promoters' Shareholding:

Sr.

no

Shareholding at the beginning of the year

Cumulative Shareholding during the year

No. of shares

% of total shares of the company

No. of shares

% of total shares of the company

At the beginning of the year

27475300

100%

1970040

100%

Date wise Increase / Decrease in Promoters Share holding during the year specifying the reasons for increase

/ decrease (e.g. allotment / transfer / bonus/ sweat equity

etc):

DATE

NO. OF

SHARES

TO WHOM

ISSUED

REASON

ALLOTMENT

DATE

NO. OF

SHARES

TO WHOM

ISSUED

REASON

30.06.2018 11,70,000 The Governor

of H. P. Allotment to

existing

Shareholders

12.09.2018

8,00,040 The Governor

of H. P. Allotment to

existing

Shareholders

Total 1970040

TRANSFER DATE

NO. OF

SHARES

Transferor

Transferee

30/06/2018

200

Sh. Vidya ChanderPharka, IAS

Sh. Vineet Chawdhry, IAS

30/06/2018

200

Sh. Tarun Shridhar, IAS

Sh. Ram Dass Dhiman, IAS

30/06/2018

200

Sh. ThubdanGomphel Negi, IAS

Smt. Manisha Nanda, IAS

30/06/2018

200

Sh. Devendra Kumar Sharma

Sh. Devesh Kumar, IAS

12/09/2018

200

Sh. Ram Dass Dhiman, IAS

Sh. Tarun Kapoor, IAS

12/09/2018

200

Dr. Shrikant Baldi, IAS

Sh. Anil Kumar Khachi, IAS

12/09/2018

200

Smt. Manisha Nanda, IAS

Dr. Shrikant Baldi, IAS

28/11/2018

200

Sh. Vineet Chawdhry, IAS

Sh. Brij Kumar Agarwal, IAS

28/11/2018

200

Sh. Tarun Kapoor, IAS

Sh. Prabodh Saxena, IAS

At the End of the year

29445340 100 29445340 100

Shareholder's Name

Shareholding at the beginning of the year

Shareholding at the end of the year

No. of Shares

% of total Shares of the company

% of Shares Pledged/

encumbe red to total shares

No. of Shares

% of total Shares of the company

%of Shares Pledged / encumbe red to total shares

% change in share holding during the year

1.

Governor of Himachal Pradesh

16604300

60.43

-

18574340

63.08

-

2.65

2.

Himachal Pradesh Infrastructure Development Board (was not a Promoter at the time of incorporation of Company)

10870000

39.57

-

10870000

36.92

-

-2.65

3.

Sh. Brij Kumar Agarwal, IAS

200

0.00

-

200

0.00

-

-

4.

Dr. Shrikant Baldi, IAS

200

0.00

-

200

0.00

-

-

5.

Sh. Prabodh Saxena, IAS

200

0.00

-

200

0.00

-

-

6.

Sh. Anil Kumar Khachi, IAS

200

0.00

-

200

0.00

-

-

7.

Sh. Devesh Kumar, IAS

200

0.00

-

200

0.00

-

-

27475300

100

29445340

100

Sr. No.

b)

Individuals

(i) Individual shareholders holding nominal share capital upto Rs. 1 lakh

(ii)

Individual shareholders holding nominal share capital in excess of Rs 1 lakh

0

0

0

0

0

0

0

0

-

c) Others(Specify) 0 0 0 0 0 0 0 0 -

Sub-total(B)(2) 0 0 0 0 0 0 0 0 -

TotalPublic Shareholding (B)=(B)(1)+ (B)(2)

0 0 0 0 0 0 0 0 -

C.Shares heldby Custodianfor GDRs&ADRs

0

0

0

0

0

0

0

0

-

GrandTotal

(A+B+C)

27475300.00

100

29445340

100

-

Total

19

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

19

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/ accrued but not due for payment:

Secured L oans excluding deposits

Unsecured Loans

Deposits Total Indebtedness

i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due

371829971 0

1405823

6909439746

52928625

1188587081

7281269717

52928625

1189992904

Total(i+ii+iii)

373235794

8150955452

8524191246

Change in Indebtedness during the financial year

- Addition - Reduction

348089140 (52645767)

4724229601 (45921394)

5072318741 (98567161)

Net Change 295443373 4678308207 4973751580

Indebtedness at the end of the financial year(2018-19)

i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due

666119272 0

2559895

10791870863

100256321

1937136475

11457990135

100256321

1939696370

Total (i+ii+iii)

668679167

12829263659

13497942826

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager

Indebtedness at the -

begining of the financial

year (2018-19)

Sl.

No.

Particulars of Remuneration Designation

Total Amount (in Rs.)

1. Name of MD/WTD/ Manager: 1) Ravinder Kumar Sharma Gross salary

(a) Salary as per provisions contained in section17(1) of the Income-tax Act,1961

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

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

(Managing Director)

2462750.00

Name of MD/WTD/ Manager: 1) Sh. Rajesh Singh Gross salary (a)Salary as per provisions contained in section17(1) of the Income-tax Act,1961

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

(c)Profits in lieu of salary under section17(3) Income-tax Act,1961

(Whole Time Director)

2040314.00

Name ofMD/WTD/ Manager: 1) Sh. Keshav Singh Attri Gross salary (a)Salary as per provisions contained in section17(1) of the Income-tax Act,1961

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

(c)Profits in lieu of salary under section17(3) Income-tax Act,1961

(Whole Time Director)

1670661.00

2. Stock Option

- -

3. Sweat Equity - -

20 21

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

19

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/ accrued but not due for payment:

Secured L oans excluding deposits

Unsecured Loans

Deposits Total Indebtedness

i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due

371829971 0

1405823

6909439746

52928625

1188587081

7281269717

52928625

1189992904

Total(i+ii+iii)

373235794

8150955452

8524191246

Change in Indebtedness during the financial year

- Addition - Reduction

348089140 (52645767)

4724229601 (45921394)

5072318741 (98567161)

Net Change 295443373 4678308207 4973751580

Indebtedness at the end of the financial year(2018-19)

i) Principal Amount ii) Interest due but not paid iii) Interest accrued but not due

666119272 0

2559895

10791870863

100256321

1937136475

11457990135

100256321

1939696370

Total (i+ii+iii)

668679167

12829263659

13497942826

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager

Indebtedness at the -

begining of the financial

year (2018-19)

Sl.

No.

Particulars of Remuneration Designation

Total Amount (in Rs.)

1. Name of MD/WTD/ Manager: 1) Ravinder Kumar Sharma Gross salary

(a) Salary as per provisions contained in section17(1) of the Income-tax Act,1961

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

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

(Managing Director)

2462750.00

Name of MD/WTD/ Manager: 1) Sh. Rajesh Singh Gross salary (a)Salary as per provisions contained in section17(1) of the Income-tax Act,1961

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

(c)Profits in lieu of salary under section17(3) Income-tax Act,1961

(Whole Time Director)

2040314.00

Name ofMD/WTD/ Manager: 1) Sh. Keshav Singh Attri Gross salary (a)Salary as per provisions contained in section17(1) of the Income-tax Act,1961

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

(c)Profits in lieu of salary under section17(3) Income-tax Act,1961

(Whole Time Director)

1670661.00

2. Stock Option

- -

3. Sweat Equity - -

20 21

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

22

21

B. Remuneration to other directors:

VII. PENALTIES/ PUNISHMENT/ COMPOUNDING OF OFFENCES:

4. Commission - as% of profit - others,specify…

- -

5. Others, please specify - -

6. Total(A)

- 6173725.00

Ceiling as per the Act

.

No. Particulars of Remuneration Name of MD/WTD/

Manager Total

Amount

Independent Directors ·Fee for attending board committee meetings ·Commission ·Others, please specify

- -

Total(1)

Other Non-Executive Directors ·Fee for attending board committee meetings ·Commission ·Others, please specify

- -

Total (2)

Total (B)=(1+2)

Total Managerial Remuneration - -

Overall Ceiling as per the Act

Sl

.

no.

Particulars

of

Remuneration

Key

Managerial

Personnel

(Name)

CEO

Company

Secretary CFO

Total

10.

Gross

salary

(a)

Salary

as

per provisions contained

in section17(1)of the

Income-tax Act,1961 (b)Value of perquisites u/s

17(2) Income-tax Act,1961

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

-

-

-

11.

Stock

Option -

-

-

12.

Sweat

Equity

-

-

-

13.

Commission -

as

%

of profit

-

others,

specify…

-

-

-

14.

Others,

please specify

-

-

-

15.

Total

Sl

C. Remuneration to Key Managerial Personnel Other Than MD /Manager /WTD

Type

Section of the companies Act

Brief description

Authority[RD

/NCLT/Court] Appeal

made. If any(give

details)

A.Company

Penalty - - - - -

Punishment - - - - - Compounding - - - - -

B.Directors Penalty - - - - - Punishment - - - - - Compounding - - - - -

C.Other

Officers

In

Default

Penalty

-

-

-

-

-

Punishment

-

-

-

-

- Compounding

-

-

-

-

-

Details of Penalty/Punishment/

Compounding fees imposed

Er. Keshav Singh AttriDirector (P&C)

Sd/-

Er. Ravinder Kumar SharmaManaging Director

Sd/-

22 23

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

22

21

B. Remuneration to other directors:

VII. PENALTIES/ PUNISHMENT/ COMPOUNDING OF OFFENCES:

4. Commission - as% of profit - others,specify…

- -

5. Others, please specify - -

6. Total(A)

- 6173725.00

Ceiling as per the Act

.

No. Particulars of Remuneration Name of MD/WTD/

Manager Total

Amount

Independent Directors ·Fee for attending board committee meetings ·Commission ·Others, please specify

- -

Total(1)

Other Non-Executive Directors ·Fee for attending board committee meetings ·Commission ·Others, please specify

- -

Total (2)

Total (B)=(1+2)

Total Managerial Remuneration - -

Overall Ceiling as per the Act

Sl

.

no.

Particulars

of

Remuneration

Key

Managerial

Personnel

(Name)

CEO

Company

Secretary CFO

Total

10.

Gross

salary

(a)

Salary

as

per provisions contained

in section17(1)of the

Income-tax Act,1961 (b)Value of perquisites u/s

17(2) Income-tax Act,1961

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

-

-

-

11.

Stock

Option -

-

-

12.

Sweat

Equity

-

-

-

13.

Commission -

as

%

of profit

-

others,

specify…

-

-

-

14.

Others,

please specify

-

-

-

15.

Total

Sl

C. Remuneration to Key Managerial Personnel Other Than MD /Manager /WTD

Type

Section of the companies Act

Brief description

Authority[RD

/NCLT/Court] Appeal

made. If any(give

details)

A.Company

Penalty - - - - -

Punishment - - - - - Compounding - - - - -

B.Directors Penalty - - - - - Punishment - - - - - Compounding - - - - -

C.Other

Officers

In

Default

Penalty

-

-

-

-

-

Punishment

-

-

-

-

- Compounding

-

-

-

-

-

Details of Penalty/Punishment/

Compounding fees imposed

Er. Keshav Singh AttriDirector (P&C)

Sd/-

Er. Ravinder Kumar SharmaManaging Director

Sd/-

22 23

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

HP POWER TRANSMISSION CORPORATION LTD.Himfed Building, Tutikandi, (Panjri)Shimla

Balance Sheet As At 31st March-2019

(Er. K.S.Attri) (Er. R.K.Sharma)

Director(P&C) Managing Director

For Manish K Gupta & Associates

Chartered Accountants

FRN No. 016533N

CAG Regd. No. NR1225

Place: Shimla CA Ankur Mahajan

Date: 28.09.2019 (Partner)

M.No. 520473

(Kamlesh Sharma) (Anil Kumar Sharma)

Manager (Accounts) Dy.G.M.(Finance)

The accompanying notes from 2.1 to 2.26 form an intergal part of the financial statements.

Sd/- Sd/- Sd/- Sd/-

Sd/-

Particulars Note As at 31.03.2019 As at 31.03.2018 ASSETS Non-current assets: Property, Plant and Equipments 2.1 31,109.57 27,171.89 Capital work-in-progress 2.2 142,478.77 91,274.78 Other Intangible Assets 2.3 2.52 1.83 Financial assets Investments - - Loans - - Other - - Deferred Tax Assets (Net) - - Other Non Current Assets 2.4 622.12 976.75 Total Non Current Assets 174,212.98 119,425.25 Current assets:(a) Current investments - - Inventories - - (c) Trade receivables - - Financial AssetsTrade Receivables 2.5 277.28 346.24 Cash and cash equivalents 2.6 12,247.92 12,719.05 Bank Balance other than above 2.7 739.41 871.10 Investments - - Loans 2.8 1.22 1.48 Other 2.9 6,970.14 4,587.71 Current Tax Assets 2.10 2,127.94 2,022.21 Other Current Assets 2.11 47.52 90.34 Total Current Assets 22,411.44 20,638.14 Total Assets 196,624.41 140,063.39 EQUITY AND LIABILITIESEquity

Equity Share Capital 2.12 29,445.34 27,475.30 Share Application Money 2.13 3,199.96 1,170.00 Other Equity 2.14 3,071.26 1,782.67 Total Equity 35,716.56 30,427.97 Liabilities

Non Current Liabilities Financial Liabilities - -

Other Borrowings 2.15 114,579.90 72,812.70 Other Financial Liabilities 2.16 9,810.79 6,348.47 Provisions 2.17 25,981.71 18,353.19 Other non current liabilities - - Total Non Current Liabilities 150,372.40 97,514.36 Current Liabilities: Financial Liabilties Trade Payables - - Other financial liabilities 2.18 10,535.45 12,121.06 Provisions - - Total Current Liabilities 10,535.45 12,121.06

- - Total Equity & Liabilities 196,624.41 140,063.39

24 2526

ParticularsNote

No. As on 31.03.2019 As on 31.03.2018

Income

Revenue from operations 2.19 1,832.80 1,931.24 Other Income 2.20 - -

Total Income 1,832.80 1,931.24

Expenses:

Operating Expenses 2.21 2,930.53 480.24

Employee benefit expenses 2.22 33.60 439.30

Financial costs 2.23 912.86 508.57

Depreciation and amortization expenses 2.24 1,446.74 1,200.26 Other Administrative Expenses 2.25 10.27 104.38

Total Expenses 5,333.99 2,732.75

Profit before net movement in regulatory

deferred account balance and tax

Net movement in deffered Account Balance

Profit before tax (3,501.19) (801.51)

Prior Period Adjustment 2.26 (591.22) 129.11 Tax expenses

Current Tax

Deffered Tax

Profit for the period (4,092.41) (672.40)

Total (4,092.41) (672.40)

Earning per equity Share(before net movement in regulatory deffered Account Balance (14.86) (2.45)

basic and diluated (14.86) (2.45)

Earning per equity Share(after net movement in regulatory deffered Account Balance (14.86) (2.45)

basic and diluated (14.86) (2.45)Significan Accounting Policies 1

The accompanying notes from 2.1 to 2.26 form an intergal part of the financial statements.

Profit & Loss statement for the year ended as on 31.3.19

HP POWER TRANSMISSION CORPORATION LTD.Himfed Building, Tutikandi, (Panjri)Shimla

(Er. K.S.Attri) (Er. R.K.Sharma)

Director(P&C) Managing Director

For Manish K Gupta & Associates

Chartered Accountants

FRN No. 016533N

CAG Regd. No. NR1225

Place: Shimla CA Ankur Mahajan

Date: 28.09.2019 (Partner)

M.No. 520473

(Kamlesh Sharma) (Anil Kumar Sharma)

Manager (Accounts) Dy.G.M.(Finance)

Sd/- Sd/- Sd/- Sd/-

Sd/-

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

HP POWER TRANSMISSION CORPORATION LTD.Himfed Building, Tutikandi, (Panjri)Shimla

Balance Sheet As At 31st March-2019

(Er. K.S.Attri) (Er. R.K.Sharma)

Director(P&C) Managing Director

For Manish K Gupta & Associates

Chartered Accountants

FRN No. 016533N

CAG Regd. No. NR1225

Place: Shimla CA Ankur Mahajan

Date: 28.09.2019 (Partner)

M.No. 520473

(Kamlesh Sharma) (Anil Kumar Sharma)

Manager (Accounts) Dy.G.M.(Finance)

The accompanying notes from 2.1 to 2.26 form an intergal part of the financial statements.

Sd/- Sd/- Sd/- Sd/-

Sd/-

Particulars Note As at 31.03.2019 As at 31.03.2018 ASSETS Non-current assets: Property, Plant and Equipments 2.1 31,109.57 27,171.89 Capital work-in-progress 2.2 142,478.77 91,274.78 Other Intangible Assets 2.3 2.52 1.83 Financial assets Investments - - Loans - - Other - - Deferred Tax Assets (Net) - - Other Non Current Assets 2.4 622.12 976.75 Total Non Current Assets 174,212.98 119,425.25 Current assets:(a) Current investments - - Inventories - - (c) Trade receivables - - Financial AssetsTrade Receivables 2.5 277.28 346.24 Cash and cash equivalents 2.6 12,247.92 12,719.05 Bank Balance other than above 2.7 739.41 871.10 Investments - - Loans 2.8 1.22 1.48 Other 2.9 6,970.14 4,587.71 Current Tax Assets 2.10 2,127.94 2,022.21 Other Current Assets 2.11 47.52 90.34 Total Current Assets 22,411.44 20,638.14 Total Assets 196,624.41 140,063.39 EQUITY AND LIABILITIESEquity

Equity Share Capital 2.12 29,445.34 27,475.30 Share Application Money 2.13 3,199.96 1,170.00 Other Equity 2.14 3,071.26 1,782.67 Total Equity 35,716.56 30,427.97 Liabilities

Non Current Liabilities Financial Liabilities - -

Other Borrowings 2.15 114,579.90 72,812.70 Other Financial Liabilities 2.16 9,810.79 6,348.47 Provisions 2.17 25,981.71 18,353.19 Other non current liabilities - - Total Non Current Liabilities 150,372.40 97,514.36 Current Liabilities: Financial Liabilties Trade Payables - - Other financial liabilities 2.18 10,535.45 12,121.06 Provisions - - Total Current Liabilities 10,535.45 12,121.06

- - Total Equity & Liabilities 196,624.41 140,063.39

24 2526

ParticularsNote

No. As on 31.03.2019 As on 31.03.2018

Income

Revenue from operations 2.19 1,832.80 1,931.24 Other Income 2.20 - -

Total Income 1,832.80 1,931.24

Expenses:

Operating Expenses 2.21 2,930.53 480.24

Employee benefit expenses 2.22 33.60 439.30

Financial costs 2.23 912.86 508.57

Depreciation and amortization expenses 2.24 1,446.74 1,200.26 Other Administrative Expenses 2.25 10.27 104.38

Total Expenses 5,333.99 2,732.75

Profit before net movement in regulatory

deferred account balance and tax

Net movement in deffered Account Balance

Profit before tax (3,501.19) (801.51)

Prior Period Adjustment 2.26 (591.22) 129.11 Tax expenses

Current Tax

Deffered Tax

Profit for the period (4,092.41) (672.40)

Total (4,092.41) (672.40)

Earning per equity Share(before net movement in regulatory deffered Account Balance (14.86) (2.45)

basic and diluated (14.86) (2.45)

Earning per equity Share(after net movement in regulatory deffered Account Balance (14.86) (2.45)

basic and diluated (14.86) (2.45)Significan Accounting Policies 1

The accompanying notes from 2.1 to 2.26 form an intergal part of the financial statements.

Profit & Loss statement for the year ended as on 31.3.19

HP POWER TRANSMISSION CORPORATION LTD.Himfed Building, Tutikandi, (Panjri)Shimla

(Er. K.S.Attri) (Er. R.K.Sharma)

Director(P&C) Managing Director

For Manish K Gupta & Associates

Chartered Accountants

FRN No. 016533N

CAG Regd. No. NR1225

Place: Shimla CA Ankur Mahajan

Date: 28.09.2019 (Partner)

M.No. 520473

(Kamlesh Sharma) (Anil Kumar Sharma)

Manager (Accounts) Dy.G.M.(Finance)

Sd/- Sd/- Sd/- Sd/-

Sd/-

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

2726

ParticularsNote

No. As on 31.03.2019 As on 31.03.2018

Expenses(A)

Employee benefit expenses 2.22 1,630.31 1,192.70

Financial costs 2.23 8,168.29 5,241.44

Depreciation and amortization expenses 2.24 - 18.88

Other Administrative Expenses 2.25 385.40 228.53

Prior Period Adjustment - Total (A) 10,184.00 6,681.55

Less:- i.Miscellaneous Income 2.20 633.81 696.32 Net Expenditure (B)

(Carried forward to CWIP) 9,550.19 5,985.23

Significant Accounting Policies & Notes to Accounts 1

(Er. K.S.Attri) (Er. R.K.Sharma)

Director(P&C) Managing Director

For Manish K Gupta & Associates

Chartered Accountants

FRN No. 016533N

CAG Regd. No. NR1225

Place: Shimla CA Ankur Mahajan

Date: 28.09.2019 (Partner)

M.No. 520473

2.2.1) Expenditure Attributable to Construction

(Kamlesh Sharma) (Anil Kumar Sharma)

Manager (Accounts) Dy.G.M.(Finance)

HP POWER TRANSMISSION CORPORATION LTD.Himfed Building, Tutikandi, (Panjri) Shimla

Sd/- Sd/- Sd/- Sd/-

Sd/-

-

28 27

(Amt Rs. in Lakh)

Particulars Year ended 31.03.2019 Year ended 31.3.2018

(A) CASH FLOW FROM OPERATING ACTIVITIES

Profit before tax -4,092.41

-672.40

Depreciation 1,446.74

1,219.15

Depreciation of Prior Period -

-

Finance Charges 912.86

508.57

Long Term Provisons (Net) 7,628.52

4,777.54

Adjustment for Current Assets & Current Laibilites

Decrease in Trade Receivables 68.97

-

Increase in Current Tax Assets -105.73

-348.30

Decrease in Other Current Assets 42.81 -

Decrease in loans 0.26 - Increase in others -2,382.43 2,710.08 Other Current Liabilities -1,585.61 -1,848.06 Income Tax -25.00

Other Current Assets

Loans & Others

Other Current Liabilities

Income Tax

Net cash generated by operating activites(A) 1,933.97

6,321.57

(B) CASH FLOW FROM INVESTING ACTIVITIES

Capital Expenditure on tangible Assets -5,384.32

-4,183.22

Capital Expenditure on Intangible Assets -0.79

-

Net Expenditure on CWIP -47,741.67

-31,719.91

Deposit Given 354.64

-496.18

Net cash used in investing activites (B) -52,772.15

-36,399.31

C) CASH FLOW FROM FINANCING ACTIVITIES

Share Capital 1,970.04

2,551.80

Share Application Money Pending for allotment 2,029.96

219.00

Repayment of Borrowings -512.40

-265.59

Grant Received 5,381.00

1,424.42

Proceeds from Borrowings (Net) 42,279.60

27,276.34

Finance Cost -912.86

-508.57

Net cash used in Financing activites (C ) 50,235.35

30,697.39

Net increase in cash and cash equivalents -602.83

619.66

Add: Opening Cash and Equivalents 13,590.16

12,970.50

Closing Cash and Equivalents 12,987.33

13,590.16

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

HP POWER TRANSMISSION CORPORATION LTD.Himfed Building, Tutikandi, (Panjri) Shimla

(Er. K.S.Attri) (Er. R.K.Sharma)

Director(P&C) Managing Director

For Manish K Gupta & Associates

Chartered Accountants

FRN No. 016533N

CAG Regd. No. NR1225

Place: Shimla CA Ankur Mahajan

Date: 28.09.2019 (Partner)

M.No. 520473

(Kamlesh Sharma) (Anil Kumar Sharma)

Manager (Accounts) Dy.G.M.(Finance)

Sd/- Sd/- Sd/- Sd/-

Sd/-

-

-

--

-

-

--

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

2726

ParticularsNote

No. As on 31.03.2019 As on 31.03.2018

Expenses(A)

Employee benefit expenses 2.22 1,630.31 1,192.70

Financial costs 2.23 8,168.29 5,241.44

Depreciation and amortization expenses 2.24 - 18.88

Other Administrative Expenses 2.25 385.40 228.53

Prior Period Adjustment - Total (A) 10,184.00 6,681.55

Less:- i.Miscellaneous Income 2.20 633.81 696.32 Net Expenditure (B)

(Carried forward to CWIP) 9,550.19 5,985.23

Significant Accounting Policies & Notes to Accounts 1

(Er. K.S.Attri) (Er. R.K.Sharma)

Director(P&C) Managing Director

For Manish K Gupta & Associates

Chartered Accountants

FRN No. 016533N

CAG Regd. No. NR1225

Place: Shimla CA Ankur Mahajan

Date: 28.09.2019 (Partner)

M.No. 520473

2.2.1) Expenditure Attributable to Construction

(Kamlesh Sharma) (Anil Kumar Sharma)

Manager (Accounts) Dy.G.M.(Finance)

HP POWER TRANSMISSION CORPORATION LTD.Himfed Building, Tutikandi, (Panjri) Shimla

Sd/- Sd/- Sd/- Sd/-

Sd/-

-

28 27

(Amt Rs. in Lakh)

Particulars Year ended 31.03.2019 Year ended 31.3.2018

(A) CASH FLOW FROM OPERATING ACTIVITIES

Profit before tax -4,092.41

-672.40

Depreciation 1,446.74

1,219.15

Depreciation of Prior Period -

-

Finance Charges 912.86

508.57

Long Term Provisons (Net) 7,628.52

4,777.54

Adjustment for Current Assets & Current Laibilites

Decrease in Trade Receivables 68.97

-

Increase in Current Tax Assets -105.73

-348.30

Decrease in Other Current Assets 42.81 -

Decrease in loans 0.26 - Increase in others -2,382.43 2,710.08 Other Current Liabilities -1,585.61 -1,848.06 Income Tax -25.00

Other Current Assets

Loans & Others

Other Current Liabilities

Income Tax

Net cash generated by operating activites(A) 1,933.97

6,321.57

(B) CASH FLOW FROM INVESTING ACTIVITIES

Capital Expenditure on tangible Assets -5,384.32

-4,183.22

Capital Expenditure on Intangible Assets -0.79

-

Net Expenditure on CWIP -47,741.67

-31,719.91

Deposit Given 354.64

-496.18

Net cash used in investing activites (B) -52,772.15

-36,399.31

C) CASH FLOW FROM FINANCING ACTIVITIES

Share Capital 1,970.04

2,551.80

Share Application Money Pending for allotment 2,029.96

219.00

Repayment of Borrowings -512.40

-265.59

Grant Received 5,381.00

1,424.42

Proceeds from Borrowings (Net) 42,279.60

27,276.34

Finance Cost -912.86

-508.57

Net cash used in Financing activites (C ) 50,235.35

30,697.39

Net increase in cash and cash equivalents -602.83

619.66

Add: Opening Cash and Equivalents 13,590.16

12,970.50

Closing Cash and Equivalents 12,987.33

13,590.16

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

HP POWER TRANSMISSION CORPORATION LTD.Himfed Building, Tutikandi, (Panjri) Shimla

(Er. K.S.Attri) (Er. R.K.Sharma)

Director(P&C) Managing Director

For Manish K Gupta & Associates

Chartered Accountants

FRN No. 016533N

CAG Regd. No. NR1225

Place: Shimla CA Ankur Mahajan

Date: 28.09.2019 (Partner)

M.No. 520473

(Kamlesh Sharma) (Anil Kumar Sharma)

Manager (Accounts) Dy.G.M.(Finance)

Sd/- Sd/- Sd/- Sd/-

Sd/-

-

-

--

-

-

--

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

2928

A. Equity Share Capital

Note No.

2.12

B. Share Application Money

Note No.

2.13

C. Other Equity Amt. in Rs.

Note No. Reserve & Surplus

Opening Balance as at April,1,2018 2.14 2996.42 2534.69

-4092.41

5146.70 5146.70234.30 234.30

8377.41826 3071.26

MNRE Capital

Grant

Interest on MNRE Grant receivedMNRE Grant Received during the year

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31,2019

4000.00

Particulars Amount in Rs.

Opening Balance as at April 1, 2018

Less :- Share Issued during the year 1970.04

Particulars

Total Other

Equity

Closing Balance as at March,31,2019

Closing Balance as at March,31,2019 29445.34

Particulars Amount Rs. in Lakh

Opening Balance as at April 1, 2018 27475.30

Equity Share Issued during the year 1970.04

3199.96

Add:- Amount received during the year .1170.00

Interim Dividend

Closing Balance as at March31,2019

Profit for the periodTotal Compehensive IncomeDividends

Other comprehensive Income for the year

Interim DividendDividend TaxFinal Dividend

Final Devidend

-5306.16

Retained

Earnins-1213.74

-4092.41

HP POWER TRANSMISSION CORPORATION LTD.Himfed Building, Tutikandi, (Panjri) Shimla

(Er. K.S.Attri) (Er. R.K.Sharma)

Director(P&C) Managing Director

For Manish K Gupta & Associates

Chartered Accountants

FRN No. 016533N

CAG Regd. No. NR1225

Place: Shimla CA Ankur Mahajan

Date: 28.09.2019 (Partner)

M.No. 520473

(Kamlesh Sharma) (Anil Kumar Sharma)

Manager (Accounts) Dy.G.M.(Finance)

Sd/- Sd/- Sd/- Sd/-

Sd/-

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ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

2928

A. Equity Share Capital

Note No.

2.12

B. Share Application Money

Note No.

2.13

C. Other Equity Amt. in Rs.

Note No. Reserve & Surplus

Opening Balance as at April,1,2018 2.14 2996.42 2534.69

-4092.41

5146.70 5146.70234.30 234.30

8377.41826 3071.26

MNRE Capital

Grant

Interest on MNRE Grant receivedMNRE Grant Received during the year

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31,2019

4000.00

Particulars Amount in Rs.

Opening Balance as at April 1, 2018

Less :- Share Issued during the year 1970.04

Particulars

Total Other

Equity

Closing Balance as at March,31,2019

Closing Balance as at March,31,2019 29445.34

Particulars Amount Rs. in Lakh

Opening Balance as at April 1, 2018 27475.30

Equity Share Issued during the year 1970.04

3199.96

Add:- Amount received during the year .1170.00

Interim Dividend

Closing Balance as at March31,2019

Profit for the periodTotal Compehensive IncomeDividends

Other comprehensive Income for the year

Interim DividendDividend TaxFinal Dividend

Final Devidend

-5306.16

Retained

Earnins-1213.74

-4092.41

HP POWER TRANSMISSION CORPORATION LTD.Himfed Building, Tutikandi, (Panjri) Shimla

(Er. K.S.Attri) (Er. R.K.Sharma)

Director(P&C) Managing Director

For Manish K Gupta & Associates

Chartered Accountants

FRN No. 016533N

CAG Regd. No. NR1225

Place: Shimla CA Ankur Mahajan

Date: 28.09.2019 (Partner)

M.No. 520473

(Kamlesh Sharma) (Anil Kumar Sharma)

Manager (Accounts) Dy.G.M.(Finance)

Sd/- Sd/- Sd/- Sd/-

Sd/-

30

AS

SE

TS

(Am

t.R

s.in

Lak

h )

PA

RT

ICU

LA

RS

AS

ON

AD

DIT

ION

AS

ON

UP

TO

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IDE

D

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ings

UP

TO

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AS

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01.0

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8D

UR

ING

PE

RIO

D A

DJU

ST

ED

31.0

3.1

931.0

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ING

PE

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D

Prior

Period

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D

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TE

D31.0

3.1

931.0

3.1

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Tra

nsm

issi

on L

ines

and

Subst

atio

n30,9

53.3

4

5,2

86.3

4

2

49.7

0

35,9

89.9

8

7,8

86.5

0

1,4

21.3

5

-

9,3

07.8

5

26,6

82.1

3

23,0

66.8

4

L

and for

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tn. &

Tra

ns.

Lin

es

4,0

64

.17

239.8

5

-

4,3

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2

-

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4,0

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7

F

urn

itu

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Fix

ture

70

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0

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6

8.2

1

-

55

.97

29

.26

23

.22

V

ehic

le1

9.6

1

29

.60

(

0.0

0)

49.2

0

16.6

0

2.3

4

-

18

.94

30

.26

3.0

1

Co

mp

ute

r7

8.7

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ice

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ipm

ents

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2

-

14

.46

9.9

3

2.3

4

Mis

cella

neous

Equip

ments

0.1

7

-

-

0.1

7

0.1

7

-

-

0.1

7

0.0

0

0.0

0

Fire S

afe

ty E

quip

ments

0.4

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-

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0.4

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5

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5

0.0

0

0.0

0

Capita

l Exp

enditu

re o

n

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d A

ssets

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nd

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tal

35

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4.2

95

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4.0

3

2

49

.70

40,5

88.6

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32.4

01

,44

6.6

5-

9,4

79

.05

31

,10

9.5

72

7,1

71

.89

Pre

vio

us

year

31

0,2

10

.07

42,0

30.8

4 2

0.6

2

35,2

04.2

96,8

13.3

31

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9.0

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8,0

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rop

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y,P

lan

t an

d E

qu

ipm

en

ts

GR

OS

S B

LO

CK

DE

PR

EC

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ION

NE

T B

LO

CK

29

(E

r. K

.S.A

ttri

)(E

r. R

.K.S

ha

rma

)

Fo

r M

an

ish

K G

up

ta &

As

so

cia

tes

Ch

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d A

cc

ou

nta

nts

FR

N N

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01

65

33

N

CA

G R

eg

d.

No

. N

R1

22

5

CA

An

ku

r M

ah

aja

n

Pla

ce:

Sh

imla

(Pa

rtn

er)

Da

te:

28

.09

.20

19

M.N

o.

52

04

73

(An

il K

um

ar

Sh

arm

a)

Dy.

G.M

.(F

ina

nc

e)

Dir

ec

tor(

P&

C)

Ma

na

gin

g D

ire

cto

r(K

am

les

h S

ha

rma

)

Ma

na

ge

r (A

cc

ou

nts

)

Sd

/-S

d/-

Sd

/-

Sd

/-

Sd

/-

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

3130

2.2

Ca

pit

al

Wo

rk I

n P

rog

res

s

PA

RT

ICU

LA

RS

AS

ON

AD

DIT

ION

Cap

italised

Ad

justm

en

tA

S O

NA

S O

NA

S O

N

01.0

4.1

8D

UR

ING

PE

RIO

DD

uri

ng

year

Du

rin

g y

ear

31.0

3.1

931.0

3.1

931.3

.18

AD

B T

RA

NC

HE

-I

1

33/1

32/,2x2

5/3

1.5

MV

A S

ubst

atio

n C

ham

bi

(Shahpur)

2,8

55.8

02,1

37.1

34,9

92.9

34,9

92.9

32,8

55.8

0

2

220kv

D/C

(T. M

.) L

ine fro

m H

atk

oti to 2

20/4

00

kV S

ubst

ation P

ragtin

agar

6,1

09.0

94,6

34.8

110,7

43.9

010,7

43.9

06,1

09.0

9

3

220/4

00K

v1x3

1.5

MV

A S

ubst

atio

n a

t P

ragtin

agar

14,6

99.5

3

3,7

40.3

8

18,4

39.9

1

18,4

39.9

114,6

99.5

3

433/1

32 K

V G

IS P

andoh

2,1

43.5

8

1,6

77.3

4

3,8

20.9

2

3,8

20.9

22,1

43.5

8

5

400/2

20/6

6K

V G

IS S

ubst

atio

n W

angto

o(A

DB

)21,7

53.4

0

17,8

41.0

7

39,5

94.4

7

39,5

94.4

721,7

53.4

0

6In

sta

llatio

n o

f E

RP

syst

em

at H

PP

TC

L409.4

8

162.3

8

571.8

6

571.8

6409.4

8

7

PR

OC

UR

ME

NT

OF

CLO

UD

SE

RV

ICE

S F

OR

E

RP

-

24.6

1

24.6

5

24.6

5-

8R

oad C

onst

.400/2

20kv

GIS

GU

MM

A28.6

3

28.6

3

-28.6

3

9400K

V D

/C T

.LIN

E J

HA

KR

I A

BD

ULLA

PU

R10.7

6

10.7

6

-

-10.7

6

48,0

10.2

7

30,2

17.7

3

-

39.4

0

78,1

88.6

4

78,1

88.6

448,0

10.2

7

AD

B T

RA

NC

HE

-II

1

220K

v lin

e fro

m 3

3/2

20K

V L

ahal S

ub S

tatio

n

up to 2

20 K

V y

ard

of B

udhil

HE

P320.0

5

295.9

6

616.0

1

616.0

1320.0

5

266K

v D

/C T

rans. Lin

e U

rni to

Wangto

o1,0

13.8

7

271.7

4

1,2

85.6

1

1,2

85.6

11,0

13.8

7

3132/2

20 k

v S

ub S

tatio

n a

t C

haro

r5.9

1

85.7

1

91.6

2

91.6

25.9

1

4

132/2

20 K

v, 2

x100 M

VA

Poolin

g S

tation a

t

Sunda

5.9

4

75.6

7

81.6

1

81.6

15.9

4

5

220K

v D

/c (

Tw

in M

oose

) T

rans.

line S

unda to

Hatk

oti

5,7

35.6

3

2,8

18.1

0

8,5

53.7

2

8,5

53.7

25,7

35.6

3

6

220 K

v D

/C L

ine (

T.M

) fr

om

C

haro

r to

400/2

20kV

B

anala

Sub S

tation o

f P

GC

IL4,7

19.9

9

2,0

63.8

1

6,7

83.8

1

6,7

83.8

14,7

19.9

9

733/2

20/4

00K

v G

IS S

ubst

atio

n a

t Lahal

6,5

73.8

8

20,9

19.4

8

27,4

93.3

6

27,4

93.3

66573.8

8

866 K

v S

witch

ing s

tation a

t U

rni (

AD

B)

2,4

37.9

0

564.5

1

3,0

02.4

1

3,0

02.4

12,4

37.9

0

9

LIL

O o

f 132K

V K

angra

-Dehra

Lin

e a

t C

ham

bi

132K

V D

/c293.8

2

1,4

78.9

2

1,7

72.7

4

1,7

72.7

4293.8

2

10

220 K

v G

IS C

harr

or

2.7

6

-

-

2.7

6

-

-2.7

6

11G

IS S

UB

ST

N B

AR

SA

NI K

ULLU

0.7

7

0.7

7

-0.7

7

21,1

10.5

1

28,5

73.9

1

-

3.5

3

49,6

80.8

9

49,6

80.8

921,1

10.5

1

Sr.

No

.G

RO

SS

BL

OC

KN

ET

BL

OC

K

TO

TA

L A

DB

TR

AN

CH

E-I

(

A)

TO

TA

L A

DB

TR

AN

CH

E-I

I

(B)

------------------ -

------ -

----------

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - -- - - - - - - - - -

31

AD

B T

RA

NC

HE

-III

1132/3

3 K

v, 2

x100 M

VA

GIS

Sub S

tn M

azr

a

3.6

7

2.2

0

5.8

7

5.8

7

3.6

7

2132kv

D/C

Tra

n.lin

e B

ars

ani t

o C

haro

r23.2

0

1,4

97.6

9

1,5

20.8

9

1,5

20.8

9

23.2

0

3

220 K

v D

/c li

ne (

Tw

in M

oose

) fro

m B

ajo

li H

oli

HE

P to 4

00/2

20K

V L

ahal G

IS433.1

6

240.1

3

673.2

9

673.2

9

433.1

6

4220K

v S

witch

ing S

tn H

atk

oti

9.6

0

990.0

3

999.6

3

999.6

3

9.6

0

5

220K

v D

/c T

ransm

issi

on lin

e fro

m M

ajra to

Karian

2.0

4

7.2

9

9.3

3

9.3

3

2.0

4

633/1

32 k

v S

ub S

tatio

n a

t B

ars

hani

10.5

6

1.5

7

12.1

3

12.1

3

10.5

6

7

400K

v D

/Clin

e (

Tw

in M

oose

) fr

om

400/2

20K

V,

2x315 M

VA

Lahal G

IS to 4

00/2

20K

V C

ham

era

P

oolin

g S

tatio

n o

f P

GC

IL1.8

9

1,0

84.7

5

1,0

86.6

4

1,0

86.6

4

1.8

9

866K

v D

/c T

ransm

issi

on N

irm

and to K

otla

6.4

4

479.0

8

485.5

2

485.5

2

6.4

4

9

66/2

2 K

V, 2x1

0 M

VA

GIS

Subst

ation a

t N

irm

and (

Bagip

ul)

3.6

7

1.3

9

5.0

6

5.0

6

3.6

7

10

40/2

20/3

3 K

v T

rans.

line L

ahal t

o R

aje

ra1.1

2

-

1.1

2

-

-

1.1

2

1166 K

V D

/C T

/L N

IRM

AN

D T

O K

OT

LA

1.0

9

1.0

9

-

-

12

132 K

V T

/L K

UR

TH

A-B

AT

HR

I1.2

1

1.2

1

-

-

13

33/2

20K

V S

ub S

tn. at K

arian

3,0

52.3

3

1,1

17.5

1

4,1

69.8

5

-

-

3,0

52.3

3

14

220kv

s/c

line o

n d

/c tow

er

karian to P

GC

IL734.3

3

283.0

6

1,0

17.3

9

-

-

734.3

3

15

SU

RV

EY

WO

RK

B

AJO

LI H

OLI

0.7

6

0.7

6

-

0.7

6

4,2

82.7

7

5,7

07.0

0

5,1

87.2

3

4.1

8

4,7

98.3

6

4,7

98.3

6

4,2

82.7

7

KF

W F

un

ded

Pro

jects

1

132K

v D

/C T

.Lin

e fro

m T

angnu R

om

ai to

132/2

20 k

V P

S S

unda

151.2

6

18.3

3

169.5

9

169.5

9

151.2

6

2

132/2

2K

V, 2x3

1.5

MV

A G

IS S

ubst

atio

n n

ear

Tangnu R

om

ai H

EP

0.0

6

3.0

7

3.1

3

3.1

3

0.0

6

3132/2

20 K

v S

ub S

tn a

t D

ehan

2.1

5

77.9

1

80.0

6

80.0

6

2.1

5

4

132/3

3K

V, 31.5

MV

A G

IS S

ubst

atio

n in

the

yard

of R

upin

HE

P

0.9

9

0.7

8

1.7

7

1.7

7

0.9

9

5132K

V D

/c T

line R

upin

to S

unda S

S11

.69

1.1

5

12.8

4

12.8

4

11.6

9

6

220K

V D

/C (

sin

gle

Zebra

) S

nale

Hatk

oti

T/L

ine

327.9

4

1,8

77.6

9

2,2

05.6

3

2,2

05.6

3

327.9

4

7

220/6

6K

V, 80/1

00 M

VA

Additi

onal S

unda

Substa

tion

8.0

6

41.9

4

50.0

0

50.0

0

8.0

6

8

220/6

6K

V, 80/1

00 M

VA

GIS

Substa

tion a

t H

elin

g a

nd L

ILO

of 220 K

V B

ajo

li -

Holi

Lahal

D/c

line

2.4

0

27.5

0

29.9

0

29.9

0

2.4

0

9

220K

V D

/C T

. Lin

e F

rom

Dehan S

S to

Ham

irpur

SS

6.4

9

23.7

9

30.2

8

30.2

8

6.4

9

10

33 k

V D

/C P

alc

han P

rini T

rans

Lin

e26.3

1

477.1

7

503.4

8

503.4

8

26.3

1

1133K

V G

IS S

TN

Palc

han

254.0

8

74.4

3

328.5

2

328.5

2

254.0

8

12

Additio

nal 4

00/3

3K

V, 80/1

00 M

VA

Tra

nsfo

rmer

at C

haro

r S

ubst

atio

n0.5

2

0.5

2

0.5

2

-

13

Additio

nal 4

00/2

20K

V T

ransf

orm

er

at G

um

ma

Substa

tion

1,2

96.7

1

3,2

93.9

6

4,5

90.6

7

4,5

90.6

7

1,2

96.7

1

14

SU

PE

RV

ISIO

N O

F IM

PL O

F G

RE

EN

E

NE

RG

Y645.5

4

780.6

5

1,4

26.1

9

1,4

26.1

9

645.5

4

15

66 K

V T

RA

NS

LIN

E S

ALU

N T

O D

ALLI

141.1

2

29.7

0

170.8

2

170.8

2

141.1

2

16

33 K

v D

/C T.

Lin

e o

n M

onopole

Palc

han to A

D

Hydro

7.6

47.6

4-

-7.6

4

17

33K

V P

alc

han P

rini L

ine

0.2

20.2

2-

0.2

2

18

AD

D T

RA

NS

FO

RM

ER

66/2

20 K

V G

IS S

UN

DA

0.2

80.2

8-

-

19

33K

v G

IS S

witi

chin

g S

tn at P

lach

an

0.3

10.5

30.8

4-

0.3

1

20

220K

V T

LIN

E S

NA

IL T

O H

AT

KO

TI (K

FW

)968.0

0968.0

0-

968.0

0

21

133K

v G

IS S

Stn

Palc

han

0.2

20.2

2-

0.2

2

22

220/6

6 K

V S

UB

ST

N H

EIL

ING

11.8

011

.80

-11

.80

3,8

62.9

76,7

29.4

0988.9

99,6

03.4

09,6

03.4

03,8

62.9

7

TO

TA

L A

DB

TR

AN

CH

E-I

II

( C

)

To

tal

KF

W F

un

de

d P

roje

cts

(

D)

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

3130

2.2

Ca

pit

al

Wo

rk I

n P

rog

res

s

PA

RT

ICU

LA

RS

AS

ON

AD

DIT

ION

Cap

italised

Ad

justm

en

tA

S O

NA

S O

NA

S O

N

01.0

4.1

8D

UR

ING

PE

RIO

DD

uri

ng

year

Du

rin

g y

ear

31.0

3.1

931.0

3.1

931.3

.18

AD

B T

RA

NC

HE

-I

1

33/1

32/,2x2

5/3

1.5

MV

A S

ubst

atio

n C

ham

bi

(Shahpur)

2,8

55.8

02,1

37.1

34,9

92.9

34,9

92.9

32,8

55.8

0

2

220kv

D/C

(T. M

.) L

ine fro

m H

atk

oti to 2

20/4

00

kV S

ubst

ation P

ragtin

agar

6,1

09.0

94,6

34.8

110,7

43.9

010,7

43.9

06,1

09.0

9

3

220/4

00K

v1x3

1.5

MV

A S

ubst

atio

n a

t P

ragtin

agar

14,6

99.5

3

3,7

40.3

8

18,4

39.9

1

18,4

39.9

114,6

99.5

3

433/1

32 K

V G

IS P

andoh

2,1

43.5

8

1,6

77.3

4

3,8

20.9

2

3,8

20.9

22,1

43.5

8

5

400/2

20/6

6K

V G

IS S

ubst

atio

n W

angto

o(A

DB

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llatio

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at H

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-

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AD

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NC

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m 3

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of B

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3132/2

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1

91.6

2

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4

132/2

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3

6

220 K

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ine (

T.M

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om

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haro

r to

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anala

Sub S

tation o

f P

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9

2,0

63.8

1

6,7

83.8

1

6,7

83.8

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9

733/2

20/4

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atio

n a

t Lahal

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8

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6

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8

866 K

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tation a

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AD

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0

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1

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9

LIL

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UB

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L A

DB

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AN

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(

A)

TO

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AN

CH

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I

(B)

------------------ -

------ -

----------

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - -- - - - - - - - - -

31

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v, 2

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VA

GIS

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Pro

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7

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GIS

Substa

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66 K

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To

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ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

32 33

De

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ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

32 33

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ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

33

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

480.00 480.00

0.69 0.64

- 496.11

141.43

622.12 976.75

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

- - 277.28 346.24

277.28 346.24

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

0.07 0.10 0.13 0.05

11,737.51 10,016.78 510.21 2,702.12

12,247.92 12,719.05

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

739.41 871.10

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

Recoverable from Employees & others 1.22 1.48

1.22 1.48

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

Interest Accrued but not due 13.77 135.87 6,956.37 4,451.84

6,970.14 4,587.71

Preliminary Expenditure

PARTICULARS

Other term deposits (having original maturity more than 3 months

TOTAL

2.9) Other Financial Assets

Recoverable from Contractor/Supplier/Vendors

871.10

Un secured considered good

Secured considered good

Advance to Contractor & Supplier

2.5) Trade Receivables

Cash in hand Stamps in hand Balance with Banks (Current/SB A/c) Term Deposits with having maturity with in 3 months

2.7) Other Bank Balances

PARTICULARS

739.41

TOTAL

2.4) Other non-current assets

TOTAL

PARTICULARS

PPP Contribution to IIIT Una

Security Deposit

2.8) Loans and Advances

TOTAL

PARTICULARS

2.6) CASH AND CASH EQUIVALENTS

TOTAL

PARTICULARS

PARTICULARS

TOTAL

-

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

2,127.94 2,022.21

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

43.40

84.70

3.56

1.45 -

3.87

0.56

0.32 47.52

90.34

2,022.21

2.10 Current Tax Assets

PARTICULARS

2,127.94

2.11) Other Current Assets

Advance Tax Deposit/TDS/Recoverable from Tax Authorities

Stationery in hand

Advance to Govt. Departments

TOTAL

PARTICULARS

TOTAL

Pre Paid expensesPrepaid Expenses (ARR Exp.MYT 2014-15 to 2018-19)

2.12) Equity Share Capital

Amt.Rs.in Lakh Amt.Rs.in Lakh

As at 31.03.2019 As at 31.03.2018

AUTHORISED SHARE CAPITAL (3,00,00,000 Equity Shares of Rs100/-each )(Previous year 3,00,00,000 equity shares of Rs. 100/-each)

30,000.00

30,000.00

ISSUED, SUBSCRIBED AND FULLY PAID UP CAPITAL (2,94,45,340 Equity Shares of Rs. 100/- each fully paid up) (Previous year 2,74,75,300 equity shares of Rs. 100/- each (Fully paid up)

29,445.34

27,475.30

Total Paid Up Capital 29,445.34 27,475.30

Amt.Rs.in Lakh Amt.Rs.in Lakh

As at 31.03.2019 As at 31.03.2018

HP Govt 18,575.34 63.08 16,605.30 60.44

HPIDB 10,870.00 36.92 10,870.00 39.56

Total 29,445.34 100.00 27,475.30 100.00

1.2) Reconciliation of shares outstanding is set out below:

No. of shares Amt.Rs.in Lakh

No of shares at the beginning (as on 01.04.2018) 27,475,300 27,475.30

No of shares issued during the year 1,970,040 1,970.04

No of shares at the end (as on 31.03.2019) 29,445,340 29,445.34

PARTICULARS

1) The company has issued only one class of shares referred to as equity shares having a par

value of Rs. 100/- each. All equity shares carry one vote per share without restrictions and are

entitled to dividend, as and when declared. All shares rank equally with regard to the company’s

residual assets.

Name of Shareholder

PARTICULARS

%

1.1) Detail of shareholding more than 5% shares in company:

(Share holding of HP Govt. is inclusive of 1000 shares of Rs.100/- each issued in favour of 5 No. Govt. nominee Directors)

%

34 35

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

33

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

480.00 480.00

0.69 0.64

- 496.11

141.43

622.12 976.75

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

- - 277.28 346.24

277.28 346.24

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

0.07 0.10 0.13 0.05

11,737.51 10,016.78 510.21 2,702.12

12,247.92 12,719.05

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

739.41 871.10

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

Recoverable from Employees & others 1.22 1.48

1.22 1.48

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

Interest Accrued but not due 13.77 135.87 6,956.37 4,451.84

6,970.14 4,587.71

Preliminary Expenditure

PARTICULARS

Other term deposits (having original maturity more than 3 months

TOTAL

2.9) Other Financial Assets

Recoverable from Contractor/Supplier/Vendors

871.10

Un secured considered good

Secured considered good

Advance to Contractor & Supplier

2.5) Trade Receivables

Cash in hand Stamps in hand Balance with Banks (Current/SB A/c) Term Deposits with having maturity with in 3 months

2.7) Other Bank Balances

PARTICULARS

739.41

TOTAL

2.4) Other non-current assets

TOTAL

PARTICULARS

PPP Contribution to IIIT Una

Security Deposit

2.8) Loans and Advances

TOTAL

PARTICULARS

2.6) CASH AND CASH EQUIVALENTS

TOTAL

PARTICULARS

PARTICULARS

TOTAL

-

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

2,127.94 2,022.21

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

43.40

84.70

3.56

1.45 -

3.87

0.56

0.32 47.52

90.34

2,022.21

2.10 Current Tax Assets

PARTICULARS

2,127.94

2.11) Other Current Assets

Advance Tax Deposit/TDS/Recoverable from Tax Authorities

Stationery in hand

Advance to Govt. Departments

TOTAL

PARTICULARS

TOTAL

Pre Paid expensesPrepaid Expenses (ARR Exp.MYT 2014-15 to 2018-19)

2.12) Equity Share Capital

Amt.Rs.in Lakh Amt.Rs.in Lakh

As at 31.03.2019 As at 31.03.2018

AUTHORISED SHARE CAPITAL (3,00,00,000 Equity Shares of Rs100/-each )(Previous year 3,00,00,000 equity shares of Rs. 100/-each)

30,000.00

30,000.00

ISSUED, SUBSCRIBED AND FULLY PAID UP CAPITAL (2,94,45,340 Equity Shares of Rs. 100/- each fully paid up) (Previous year 2,74,75,300 equity shares of Rs. 100/- each (Fully paid up)

29,445.34

27,475.30

Total Paid Up Capital 29,445.34 27,475.30

Amt.Rs.in Lakh Amt.Rs.in Lakh

As at 31.03.2019 As at 31.03.2018

HP Govt 18,575.34 63.08 16,605.30 60.44

HPIDB 10,870.00 36.92 10,870.00 39.56

Total 29,445.34 100.00 27,475.30 100.00

1.2) Reconciliation of shares outstanding is set out below:

No. of shares Amt.Rs.in Lakh

No of shares at the beginning (as on 01.04.2018) 27,475,300 27,475.30

No of shares issued during the year 1,970,040 1,970.04

No of shares at the end (as on 31.03.2019) 29,445,340 29,445.34

PARTICULARS

1) The company has issued only one class of shares referred to as equity shares having a par

value of Rs. 100/- each. All equity shares carry one vote per share without restrictions and are

entitled to dividend, as and when declared. All shares rank equally with regard to the company’s

residual assets.

Name of Shareholder

PARTICULARS

%

1.1) Detail of shareholding more than 5% shares in company:

(Share holding of HP Govt. is inclusive of 1000 shares of Rs.100/- each issued in favour of 5 No. Govt. nominee Directors)

%

34 35

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

2.13) SHARE APPLICATION MONEY

Amt.Rs.in Lakh Amt.Rs.in Lakh

As at 31.03.2019 As at 31.03.2018

3,199.96

1,170.00

TOTAL 3,199.96 1,170.00

2.14) Other Equity

PARTICULARS Amt.Rs.in Lakh Amt.Rs.in Lakh

i) Profit & Loass A/c As at 31.03.2019 As at 31.03.2018

Opening Balance of P&L Account (1,213.74) (541)

Profit during the year (4,092.41) (672)

Closing Balance of P&L Account (5,306.16) (1,214)

ii) Capital Grant

Opening Balance of Capital Grant (MNRE) 2,885.70 1,572.00

Opening Balance of interest on Capital Grant 110.72

Add: Grant Received during the year 5,146.70 1,313.70

Add: Interest on MNRE Grant during the year 234.30 110.72

Closing Balance of Capital Grant (MNRE) 8,377.42 2,996.42

Total of Other Equity 3,071.26 1,782.67

PARTICULARS

A) HP Govt. Share Application pending allotment

2.15) BORROWINGS:

Amt.Rs.in Lakh Amt.Rs.in Lakh

As at 31.03.2019 As at 31.03.2018

Term Loan

Long Term Loans

State Govt. Loans (ADB) Tranch-1. ( Installment of principal & interest payable yearly on 15th January.)

59,874.31 44,322.47

State Govt. Loans (ADB) Tranch-2. ( Installment of principal & interest payable yearly on 15th January, however principal yet not due)

40,916.53 23,763.94

State Govt. Loans (ADB) Tranch-3. ( Installment of principal & interest payable yearly on 15th January, however principal yet not due)

3,795.57 -

Loan from M/s REC Ltd. (Repayable in 15 equal annual installments with moratorium period of 3 years, being 1st installment becoming due in FY 2017-18)

6,661.19 3,718.30

KFW GREEN ENERGY LOAN (Repayable in 15 equal annual installments with moratorium period of 5 years, being 1st installment becoming due in FY 2022-23)

3,332.30 1,007.99

TOTAL 114,579.90 72,812.70

PARTICULARS

-

Amt.Rs.in Lakh Amt.Rs.in Lakh 2.19) Revenue from operation As on 31.03.2019 As on 31.03.2018

Connectivity fee 44.00 18.00134.84

90.97

Short Term Open Access 277.61

294.29

Transmission charges Income(old Intra State) 604.00

616.00

Transmission charges Income(old Inter State) 260.50

259.27

Trans. Charges Kashang Bhaba Line 277.61

439.54

O&M Charges for usage of HPPTCL system Bhoktoo S. Station 51.84

43.25

O&M Charges for usage of HPPTCL system Phojal S . Station 10.00

-

Transmission charges Phojal 155.76

169.92

R&M 400Kv LILO D/C T/L Sainj HEP HPPCL 8.44

O&M Charges 33/220 Kv Karian Sub Station 8.20

1,832.80

1,931.24

2.20) Mics Income

Amt.Rs.in Lakh Amt.Rs.in Lakh As on 31.03.2019 As on 31.03.2018

MISCELLANEOUS INCOME:

Sale of Tender Forms 8.31

8.07

Interest on Bank Deposits 196.85

410.58 Interest on ADB Loan Imprest 242.66

99.03

Misc. Receipts 0.18

0.06

Home Stay/ Guest House income 0.34

0.02

0.00

0.01

Sale of Scrap 2.51

1.40

Intt. On IT Refund -

10.28

EMD/ RET. MONEY FORFEITED 120.00

Interest from Cont./Supplier 62.96

166.87

Total 633.81

696.32

Less: Income Attributable to Pre Construction Period 633.81

696.32

-

-

Income Transferred to Profit & Loss

PARTICULARS

STU Charges IEX STOA(SLDC)

Total

RTI Fee

-

2.16) Other Financial LiabilitiesAmt.Rs.in Lakh Amt.Rs.in Lakh

As at 31.03.2019 As at 31.03.2018

Deposits,Retention Money from Contractors & other 9,810.79 6,348.47

TOTAL 9,810.79

6,348.47

2.17) NON- CURRENT PROVISIONS

Amt.Rs.in Lakh Amt.Rs.in Lakh

As at 31.03.2019 As at 31.03.2018

Provision for Pension & Leave salary Contribution 488.19

435.86

Interest on 90%Loan of ADB Govt. of HP 19,078.68

11,724.87

Interest on 90%Loan of KFW Govt. of HP 292.68

70.31

HP State Govt/ HPSEB (Assets Cost) 6,122.16

6,122.16

TOTAL 25,981.71 18,353.19

2.18) OTHER FINANCIAL LIABILITIES-CURRENT

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

Liabilites for Employees' Remuneration and Benefits 73.49

217.62

Liabilities for Contractors & Suppliers 3,354.50

3,887.79

Liabilities against deposit Work & other Govt. Deptt. 6,683.68

7,604.42

Deposit against Bay cost 176.50

157.80

Deposit, Retention Money from Contractor and others 6.11 83.35Taxes and Duties Payable 241.16 170.08

TOTAL 10,535.45 12,121.06

PARTICULARS

PARTICULARS

PARTICULARS

36 37

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

2.13) SHARE APPLICATION MONEY

Amt.Rs.in Lakh Amt.Rs.in Lakh

As at 31.03.2019 As at 31.03.2018

3,199.96

1,170.00

TOTAL 3,199.96 1,170.00

2.14) Other Equity

PARTICULARS Amt.Rs.in Lakh Amt.Rs.in Lakh

i) Profit & Loass A/c As at 31.03.2019 As at 31.03.2018

Opening Balance of P&L Account (1,213.74) (541)

Profit during the year (4,092.41) (672)

Closing Balance of P&L Account (5,306.16) (1,214)

ii) Capital Grant

Opening Balance of Capital Grant (MNRE) 2,885.70 1,572.00

Opening Balance of interest on Capital Grant 110.72

Add: Grant Received during the year 5,146.70 1,313.70

Add: Interest on MNRE Grant during the year 234.30 110.72

Closing Balance of Capital Grant (MNRE) 8,377.42 2,996.42

Total of Other Equity 3,071.26 1,782.67

PARTICULARS

A) HP Govt. Share Application pending allotment

2.15) BORROWINGS:

Amt.Rs.in Lakh Amt.Rs.in Lakh

As at 31.03.2019 As at 31.03.2018

Term Loan

Long Term Loans

State Govt. Loans (ADB) Tranch-1. ( Installment of principal & interest payable yearly on 15th January.)

59,874.31 44,322.47

State Govt. Loans (ADB) Tranch-2. ( Installment of principal & interest payable yearly on 15th January, however principal yet not due)

40,916.53 23,763.94

State Govt. Loans (ADB) Tranch-3. ( Installment of principal & interest payable yearly on 15th January, however principal yet not due)

3,795.57 -

Loan from M/s REC Ltd. (Repayable in 15 equal annual installments with moratorium period of 3 years, being 1st installment becoming due in FY 2017-18)

6,661.19 3,718.30

KFW GREEN ENERGY LOAN (Repayable in 15 equal annual installments with moratorium period of 5 years, being 1st installment becoming due in FY 2022-23)

3,332.30 1,007.99

TOTAL 114,579.90 72,812.70

PARTICULARS

-

Amt.Rs.in Lakh Amt.Rs.in Lakh 2.19) Revenue from operation As on 31.03.2019 As on 31.03.2018

Connectivity fee 44.00 18.00134.84

90.97

Short Term Open Access 277.61

294.29

Transmission charges Income(old Intra State) 604.00

616.00

Transmission charges Income(old Inter State) 260.50

259.27

Trans. Charges Kashang Bhaba Line 277.61

439.54

O&M Charges for usage of HPPTCL system Bhoktoo S. Station 51.84

43.25

O&M Charges for usage of HPPTCL system Phojal S . Station 10.00

-

Transmission charges Phojal 155.76

169.92

R&M 400Kv LILO D/C T/L Sainj HEP HPPCL 8.44

O&M Charges 33/220 Kv Karian Sub Station 8.20

1,832.80

1,931.24

2.20) Mics Income

Amt.Rs.in Lakh Amt.Rs.in Lakh As on 31.03.2019 As on 31.03.2018

MISCELLANEOUS INCOME:

Sale of Tender Forms 8.31

8.07

Interest on Bank Deposits 196.85

410.58 Interest on ADB Loan Imprest 242.66

99.03

Misc. Receipts 0.18

0.06

Home Stay/ Guest House income 0.34

0.02

0.00

0.01

Sale of Scrap 2.51

1.40

Intt. On IT Refund -

10.28

EMD/ RET. MONEY FORFEITED 120.00

Interest from Cont./Supplier 62.96

166.87

Total 633.81

696.32

Less: Income Attributable to Pre Construction Period 633.81

696.32

-

-

Income Transferred to Profit & Loss

PARTICULARS

STU Charges IEX STOA(SLDC)

Total

RTI Fee

-

2.16) Other Financial LiabilitiesAmt.Rs.in Lakh Amt.Rs.in Lakh

As at 31.03.2019 As at 31.03.2018

Deposits,Retention Money from Contractors & other 9,810.79 6,348.47

TOTAL 9,810.79

6,348.47

2.17) NON- CURRENT PROVISIONS

Amt.Rs.in Lakh Amt.Rs.in Lakh

As at 31.03.2019 As at 31.03.2018

Provision for Pension & Leave salary Contribution 488.19

435.86

Interest on 90%Loan of ADB Govt. of HP 19,078.68

11,724.87

Interest on 90%Loan of KFW Govt. of HP 292.68

70.31

HP State Govt/ HPSEB (Assets Cost) 6,122.16

6,122.16

TOTAL 25,981.71 18,353.19

2.18) OTHER FINANCIAL LIABILITIES-CURRENT

Amt.Rs.in Lakh Amt.Rs.in Lakh As at 31.03.2019 As at 31.03.2018

Liabilites for Employees' Remuneration and Benefits 73.49

217.62

Liabilities for Contractors & Suppliers 3,354.50

3,887.79

Liabilities against deposit Work & other Govt. Deptt. 6,683.68

7,604.42

Deposit against Bay cost 176.50

157.80

Deposit, Retention Money from Contractor and others 6.11 83.35Taxes and Duties Payable 241.16 170.08

TOTAL 10,535.45 12,121.06

PARTICULARS

PARTICULARS

PARTICULARS

36 37

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

2.23) FINANCIAL COSTS:

Amt.Rs.in Lakh Amt.Rs.in Lakh

As on 31.03.2019 As on 31.03.20188,167.78

5,214.74

249.69

238.61

7,918.09

4,976.14

663.17

457.14

391.62

269.96

271.55

-

187.18

247.08

78.12

3.12

-

912.86

508.57

8,168.29

5,241.44

-

9,081.15

5,750.01

Less: Interest of PIU Phojal for FY 2018-19

Total Finance Cost Charged to Profit & Loss

TOTAL Finance Cost

Net Interest on REC Loan (b)

Interest on KFW Loan ( c )

Interest on GIS Karian S Stn & Line for FY 2018-19

Net Interest on Term Loans ADB (a)

Interest on Term Loans ADB (Tranche I &II)

Less: Interest of Bhoktoo SSTN for FY 2018-19

Interest on REC Loan

PARTICULARS

Total Finance Cost Attributable to Construction (a+b+c+d)

Interest on Term Loans ADB (Tranche-3) (d)

Amt.Rs.in Lakh Amt.Rs.in Lakh

2.21) Operating Expenses

As on 31.03.2019 As on 31.03.2018

Membership fee STU(NRPC FUND) 10.00

10.00 ARR Exp.MYT Cont. Period 2011-12 to 2013-14 21.74

23.50

Licence & reg. fee 100.00

100.00

O&M Exp. Kasang Bhaba Line 54.50

54.62

Repair & Maintance Phojal S.Stn 18.90

4.02

O&M Exp. Bhoktoo Sub Station 42.00

27.40

O&M Exp. Phosal sub stn 31.74

10.76

O&M Exp. Intra State Trans. Line from HPSEB 187.49

170.82

O&M Exp.Inter State Tran. Line from HPSEB 76.79

79.12

O&M Exp. GIS Karian Chamba 51.59

-

O&M Exp. Karian Rajera Line 17.69

-

NON POC BILLING CERC(PGCIL) 2,282.73

-

Prelimanary Expenses Written off 35.36

-

2,930.53

480.24

2.22) EMPLOYEE BENEFITS EXPENSES:

Amt.Rs.in Lakh Amt.Rs.in Lakh

As on 31.03.2019 As on 31.03.2018Salaries, Wages, Allowances and Benefits 1,478.14

1,436.94

Contribution to Provident and Other Funds 23.64

24.09

Leave Salary and Pension Contribution 73.10

107.71

Welfare Expenses 89.03

63.25

1,663.91

1,631.99

377.85

Amount of PIU Phosal 33.60

61.45

33.60

439.30

1,630.31

1,192.70

1,663.91 1,631.99

Balance Expenditure attributable to Construction

PARTICULARS

50% of Corp. Off. to STU & Transmission Income

Total for Profit & Loss Statement

Total

Total

TOTAL

Particulars

Amt.Rs.in Lakh Amt.Rs.in Lakh

As on 31.03.2019 As on 31.03.2018Depreciation for the Year on Tangible Assets 1,446.65 1,219.07 Depreciation for the Year on Intangible Assets 0.09 7,916.00 Total Depreciation for the Year 1,446.74 9,135.07 Transferred to Profit & Loss Statement (i) 1,446.74

1,200.26

-

7,934.81

-

-

Balance

Transferred to Expenditure attributable to Construction(ii)

PARTICULARS

2.24 ) Depreciation and Amortization Expenses

-

36

2.25) Other Administrative Expenses

Amt.Rs.in Lakh Amt.Rs.in Lakh

As on 31.03.2019 As on 31.03.2018

Printing & Stationery 6.26 5.96

Books & Periodicals 0.46 0.63 Electricity & Water Charges 7.82 8.44 Advertisement & Publicity Expenses 3.62 4.52 Hiring Charges for Vehicles 141.41 110.78 Fees & Subscription 2.11

0.73

Office Expenses 14.17

12.74

Other Misc. Expenses 0.30

0.05

Postage & courier 0.89

0.88 Office Building Rent 66.48

66.02

Insurance Vehicle & Others 0.58

0.37

Penality & Damages 0.49

0.12

Hospitality Expenses 6.46

5.34

Consultancy & Professional Charges 6.98

39.98

Meeting expenses 1.00

0.48

Telephone Exps.(140520+1004294) 11.45

11.57

Vehicle Running Expenses 9.04

5.65

Internal Audit Fee 0.54

0.53

Statutory Audit Fee 1.21

1.18

Prior period SA audit fee 57.50

FEE APFS AUDIT 1.65

0.29

Tax Audit Fee 1.42

-

Collection of Revenue record 0.00 0.00

PARTICULARS

-

-

-

-

-

-

Lease Line Rent BSNL 8.58

1.88

Interest Paid 0.22

10.09

TA/DA consultant 0.53

0.98

Consumable elec. Fitting 1.18

0.47

Repair & Maintenance 4.41

11.73

Reapir & Maintance Corp. Office Building 11.04

Guest House / Home stay rent 3.60

0.29

Other Misc.exp. Computer 2.87

1.97

Office Inaguration/ Shifting Expenses 0.81

0.36

ADB Consultant Remuneration 54.17

11.83

Legal Charges Advocate 2.78

3.60

Service tax on Legal charges 2.12

GST on legal services 1.64 0.58

Bank charges 0.22 0.19

TA/DA ADB Consultants 0.16 0.05

Admn.& other exp. Sarabai Zone Office 6.70 1.06 Other Admn. Expenses Phojal PIU 10.27 8.90 Safty Related exp. Sarabai 0.49 CM Relief fund 0.10

0.59

TA DA Auditors 0.98

395.67

389.83

Expenses to be Charged to Profit & Loss Account

-

95.47

10.27

8.90

10.27

104.38

385.40

285.46

Ind AS Compliance A/C Alternation fee

50% of Corp. Office Expenses Charged to Profit & Loss

Total Expenditure attributable to Construction (b)

Total (a)

Out of above:

Grand Total other Exp.

Other Admin Expenses PIU Phojal Charged to Profit & Loss

38 39

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

2.23) FINANCIAL COSTS:

Amt.Rs.in Lakh Amt.Rs.in Lakh

As on 31.03.2019 As on 31.03.20188,167.78

5,214.74

249.69

238.61

7,918.09

4,976.14

663.17

457.14

391.62

269.96

271.55

-

187.18

247.08

78.12

3.12

-

912.86

508.57

8,168.29

5,241.44

-

9,081.15

5,750.01

Less: Interest of PIU Phojal for FY 2018-19

Total Finance Cost Charged to Profit & Loss

TOTAL Finance Cost

Net Interest on REC Loan (b)

Interest on KFW Loan ( c )

Interest on GIS Karian S Stn & Line for FY 2018-19

Net Interest on Term Loans ADB (a)

Interest on Term Loans ADB (Tranche I &II)

Less: Interest of Bhoktoo SSTN for FY 2018-19

Interest on REC Loan

PARTICULARS

Total Finance Cost Attributable to Construction (a+b+c+d)

Interest on Term Loans ADB (Tranche-3) (d)

Amt.Rs.in Lakh Amt.Rs.in Lakh

2.21) Operating Expenses

As on 31.03.2019 As on 31.03.2018

Membership fee STU(NRPC FUND) 10.00

10.00 ARR Exp.MYT Cont. Period 2011-12 to 2013-14 21.74

23.50

Licence & reg. fee 100.00

100.00

O&M Exp. Kasang Bhaba Line 54.50

54.62

Repair & Maintance Phojal S.Stn 18.90

4.02

O&M Exp. Bhoktoo Sub Station 42.00

27.40

O&M Exp. Phosal sub stn 31.74

10.76

O&M Exp. Intra State Trans. Line from HPSEB 187.49

170.82

O&M Exp.Inter State Tran. Line from HPSEB 76.79

79.12

O&M Exp. GIS Karian Chamba 51.59

-

O&M Exp. Karian Rajera Line 17.69

-

NON POC BILLING CERC(PGCIL) 2,282.73

-

Prelimanary Expenses Written off 35.36

-

2,930.53

480.24

2.22) EMPLOYEE BENEFITS EXPENSES:

Amt.Rs.in Lakh Amt.Rs.in Lakh

As on 31.03.2019 As on 31.03.2018Salaries, Wages, Allowances and Benefits 1,478.14

1,436.94

Contribution to Provident and Other Funds 23.64

24.09

Leave Salary and Pension Contribution 73.10

107.71

Welfare Expenses 89.03

63.25

1,663.91

1,631.99

377.85

Amount of PIU Phosal 33.60

61.45

33.60

439.30

1,630.31

1,192.70

1,663.91 1,631.99

Balance Expenditure attributable to Construction

PARTICULARS

50% of Corp. Off. to STU & Transmission Income

Total for Profit & Loss Statement

Total

Total

TOTAL

Particulars

Amt.Rs.in Lakh Amt.Rs.in Lakh

As on 31.03.2019 As on 31.03.2018Depreciation for the Year on Tangible Assets 1,446.65 1,219.07 Depreciation for the Year on Intangible Assets 0.09 7,916.00 Total Depreciation for the Year 1,446.74 9,135.07 Transferred to Profit & Loss Statement (i) 1,446.74

1,200.26

-

7,934.81

-

-

Balance

Transferred to Expenditure attributable to Construction(ii)

PARTICULARS

2.24 ) Depreciation and Amortization Expenses

-

36

2.25) Other Administrative Expenses

Amt.Rs.in Lakh Amt.Rs.in Lakh

As on 31.03.2019 As on 31.03.2018

Printing & Stationery 6.26 5.96

Books & Periodicals 0.46 0.63 Electricity & Water Charges 7.82 8.44 Advertisement & Publicity Expenses 3.62 4.52 Hiring Charges for Vehicles 141.41 110.78 Fees & Subscription 2.11

0.73

Office Expenses 14.17

12.74

Other Misc. Expenses 0.30

0.05

Postage & courier 0.89

0.88 Office Building Rent 66.48

66.02

Insurance Vehicle & Others 0.58

0.37

Penality & Damages 0.49

0.12

Hospitality Expenses 6.46

5.34

Consultancy & Professional Charges 6.98

39.98

Meeting expenses 1.00

0.48

Telephone Exps.(140520+1004294) 11.45

11.57

Vehicle Running Expenses 9.04

5.65

Internal Audit Fee 0.54

0.53

Statutory Audit Fee 1.21

1.18

Prior period SA audit fee 57.50

FEE APFS AUDIT 1.65

0.29

Tax Audit Fee 1.42

-

Collection of Revenue record 0.00 0.00

PARTICULARS

-

-

-

-

-

-

Lease Line Rent BSNL 8.58

1.88

Interest Paid 0.22

10.09

TA/DA consultant 0.53

0.98

Consumable elec. Fitting 1.18

0.47

Repair & Maintenance 4.41

11.73

Reapir & Maintance Corp. Office Building 11.04

Guest House / Home stay rent 3.60

0.29

Other Misc.exp. Computer 2.87

1.97

Office Inaguration/ Shifting Expenses 0.81

0.36

ADB Consultant Remuneration 54.17

11.83

Legal Charges Advocate 2.78

3.60

Service tax on Legal charges 2.12

GST on legal services 1.64 0.58

Bank charges 0.22 0.19

TA/DA ADB Consultants 0.16 0.05

Admn.& other exp. Sarabai Zone Office 6.70 1.06 Other Admn. Expenses Phojal PIU 10.27 8.90 Safty Related exp. Sarabai 0.49 CM Relief fund 0.10

0.59

TA DA Auditors 0.98

395.67

389.83

Expenses to be Charged to Profit & Loss Account

-

95.47

10.27

8.90

10.27

104.38

385.40

285.46

Ind AS Compliance A/C Alternation fee

50% of Corp. Office Expenses Charged to Profit & Loss

Total Expenditure attributable to Construction (b)

Total (a)

Out of above:

Grand Total other Exp.

Other Admin Expenses PIU Phojal Charged to Profit & Loss

38 39

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

2.26) Prior Period Income and Expensiture booked during 2018-19 Amt. Rs.in Lakh

Particulars

Period of

Exp./Income As on 31.3.2019

1. Prior Period IncomeO&M exp. of GIS Phojal from Kanchanjunga for 2016-17 & 2017-18 2016-17 & 2017-18 15.54

Interest on Income Tax refund for FY 2014-15 not credited earlier now credited 2014-15 29.39

Total 44.93 2. Prior Period Expenses

Prior Period NON POC Bills from PGCIL 2017-18 554.21 Provision for Income Tax for FY 2014-15 not provided for earlier now debited 2014-15 81.94

Total 636.15

Net prior period Income and expenses adjusted during

the year transferred to Profit & Loss A/c statement (591.22)

(Er. K.S.Attri) (Er. R.K.Sharma)

Director(P&C) Managing Director

For Manish K Gupta & Associates

Chartered Accountants

FRN No. 016533N

CAG Regd. No. NR1225

Place: Shimla CA Ankur Mahajan

Date: 28.09.2019 (Partner)

M.No. 520473

(Kamlesh Sharma) (Anil Kumar Sharma)

Manager (Accounts) Dy.G.M.(Finance)

Sd/- Sd/- Sd/- Sd/-

Sd/-

ACCOUNTING POLICIES AND NOTES TO ACCOUNTS FOR THE F.Y. 2018-19.

NOTE NO. 1: COMPANY INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES

(I) REPORTING ENTITYH.P Power Transmission Corporation Limited (the “Company”) is a Company domiciled in India and limited by shares. The address of the Company's registered office is H.P. POWER TRANSMISSION CORPORATION LIMITED HimfedBhawan, Below Old MLA's Quarters (Panjri), Tutikandi, Shimla-171005 (Himachal Pradesh). The Company is a State Transmission utility incorporated with the objective of formulating/updating and execution of Transmission Master Plan of the State for strengthening of Transmission Network in Himachal Pradesh and to facilitate evacuation of power from upcoming Generating Plants.

(II) BASIS OF PREPARATION(A) STATEMENT OF COMPLIANCEThe Company has adopted IND AS for the financial year beginning on April 1, 2017. These are the Company's second annual financial statements prepared complying in all material aspects with the accounting standards notified under the Companies (Indian Accounting Standards) Rules, 2015, the Companies Act 2013(to the extent notified and applicable)and the provisions of Electricity Act,2003 to the extent applicable.For all periods up to and including the year ended 31.3.2019, the Company has prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).These financial Statements for the year ended March 31, 2019 are the second which the Company has prepared in accordance with Ind AS.

(B) BASIS OF MEASUREMENT The financial statements have been prepared on accrual basis of accounting& going concern assumption under historical cost convention, except for certain financial assets and certain financial liabilities which are measured at fair value, however impact for the year on standalone Ind AS Financial Statements has not been determined being immaterial.

(C) FUNCTIONAL AND PRESENTATION CURRENCYThese financial statements are presented in Indian Rupees (INR), which is the Company's functional currency. All financial information presented in INR has been rounded off to the nearest Lakhs (upto two decimals), except as stated otherwise.

(D) USE OF ESTIMATES AND MANAGEMENT JUDGEMENTSThe preparation of financial statements is in conformity with Ind AS requires management to make judgements, estimates and assumptions that may impact the application of accounting policies and the reported value of assets, liabilities, income, expenses and related disclosures including contingent assets and liabilities at the Balance Sheet date. The estimates and management's judgements are based

40 41

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

2.26) Prior Period Income and Expensiture booked during 2018-19 Amt. Rs.in Lakh

Particulars

Period of

Exp./Income As on 31.3.2019

1. Prior Period IncomeO&M exp. of GIS Phojal from Kanchanjunga for 2016-17 & 2017-18 2016-17 & 2017-18 15.54

Interest on Income Tax refund for FY 2014-15 not credited earlier now credited 2014-15 29.39

Total 44.93 2. Prior Period Expenses

Prior Period NON POC Bills from PGCIL 2017-18 554.21 Provision for Income Tax for FY 2014-15 not provided for earlier now debited 2014-15 81.94

Total 636.15

Net prior period Income and expenses adjusted during

the year transferred to Profit & Loss A/c statement (591.22)

(Er. K.S.Attri) (Er. R.K.Sharma)

Director(P&C) Managing Director

For Manish K Gupta & Associates

Chartered Accountants

FRN No. 016533N

CAG Regd. No. NR1225

Place: Shimla CA Ankur Mahajan

Date: 28.09.2019 (Partner)

M.No. 520473

(Kamlesh Sharma) (Anil Kumar Sharma)

Manager (Accounts) Dy.G.M.(Finance)

Sd/- Sd/- Sd/- Sd/-

Sd/-

ACCOUNTING POLICIES AND NOTES TO ACCOUNTS FOR THE F.Y. 2018-19.

NOTE NO. 1: COMPANY INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES

(I) REPORTING ENTITYH.P Power Transmission Corporation Limited (the “Company”) is a Company domiciled in India and limited by shares. The address of the Company's registered office is H.P. POWER TRANSMISSION CORPORATION LIMITED HimfedBhawan, Below Old MLA's Quarters (Panjri), Tutikandi, Shimla-171005 (Himachal Pradesh). The Company is a State Transmission utility incorporated with the objective of formulating/updating and execution of Transmission Master Plan of the State for strengthening of Transmission Network in Himachal Pradesh and to facilitate evacuation of power from upcoming Generating Plants.

(II) BASIS OF PREPARATION(A) STATEMENT OF COMPLIANCEThe Company has adopted IND AS for the financial year beginning on April 1, 2017. These are the Company's second annual financial statements prepared complying in all material aspects with the accounting standards notified under the Companies (Indian Accounting Standards) Rules, 2015, the Companies Act 2013(to the extent notified and applicable)and the provisions of Electricity Act,2003 to the extent applicable.For all periods up to and including the year ended 31.3.2019, the Company has prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).These financial Statements for the year ended March 31, 2019 are the second which the Company has prepared in accordance with Ind AS.

(B) BASIS OF MEASUREMENT The financial statements have been prepared on accrual basis of accounting& going concern assumption under historical cost convention, except for certain financial assets and certain financial liabilities which are measured at fair value, however impact for the year on standalone Ind AS Financial Statements has not been determined being immaterial.

(C) FUNCTIONAL AND PRESENTATION CURRENCYThese financial statements are presented in Indian Rupees (INR), which is the Company's functional currency. All financial information presented in INR has been rounded off to the nearest Lakhs (upto two decimals), except as stated otherwise.

(D) USE OF ESTIMATES AND MANAGEMENT JUDGEMENTSThe preparation of financial statements is in conformity with Ind AS requires management to make judgements, estimates and assumptions that may impact the application of accounting policies and the reported value of assets, liabilities, income, expenses and related disclosures including contingent assets and liabilities at the Balance Sheet date. The estimates and management's judgements are based

40 41

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

42 37

on previous experience and other factors considered reasonable and prudent in the circumstances. Estimates and underlying assumptions are reviewed on an ongoing basisand could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and if material their effects are disclosed in the notes to the financial statements. In order to enhance the understanding of the financial statements, information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that may have the most significant effect on the amounts recognized in the financial statements are included in the following notes.

(E) EXPENDITURE ATTRIBUTABLE TO CONSTRUCTION:-The statement showingexpenditure attributable to construction period has been prepared as most of the projectsare still under construction stage;therefore expenditure not directly attributable to assets is treated as expenditure during the construction period. This includes entire amount of indirect expenditure incurred at Corporate Office and different PIU's during construction including finance costs and all this expenditure has been shown as net of pre-construction income. Further till 31/03/2018, company was following the practice of charging 50% of Indirect Expenditure to Revenue and balance was charged to Expenditure Attributable to Construction Period. However in current year, company has charged whole In-Direct Expenditure (100%) to Expenditure Attributable to Construction Period.

In FY 2018-19, company has also allocated the Whole expenditure attributable to Pre-Construction Period up to 31/03/2019 to relevant projects as Departmental Cost (DC) and Interest During Construction (IDC).

During the yearthe company has also changed the classification of “Preliminary Expenses Not Written Off” from CWIP to other non-current assets. Also these expenses will be written off in period of 5 years starting from FY 2018-19.

(III) SIGNIFICANT ACCOUNTING POLICIES: A summary of significant accounting policies applied in the preparation of financial statements as given below have been applied consistently to all periods presented in the financial statements.

1. PROPERTY, PLANT AND EQUIPMENT (PPE)a) Property, Plant and Equipment are carried in Balance Sheet as per applicable Ind AS 16 b) An item of PPE is recognized as an asset if it is probable that future economic benefits associated

with the item will flow to the Company and the cost of the item can be measured reliably.c) PPE are initially measured at cost of acquisition/construction including decommissioning or

restoration cost wherever required. The cost includes expenditure that is directly attributable to the acquisition/construction of the asset. In cases where final settlement of bills with contractors is pending, but the asset is complete and available for use, capitalization is done on estimated basis subject to necessary adjustments, including those arising out of settlement of arbitration/court cases.

4338

d) In earlier years the consumer contribution received from “Independent Power Producers” was booked as liability and was not adjusted against cost of concerned assets. During the current year, the consumer contribution has been adjusted against the cost of concerned projects, thereby reducing the cost of assets. In FY 2018-19 the total amount of Rs. 2,49,70,444.00 is adjusted against cost of respective assets.

e) After initial recognition, Property, Plant and Equipment is carried at cost less accumulated depreciation/ amortization and accumulated impairment losses, if any.

f) Stand by equipment and servicing equipment which meets the recognition criteria of Property, Plant and Equipment are capitalized.

g) Property, Plant & Equipment over which the company has control, though created on land not belonging to the Company are included under Property, Plant and Equipment.

h) Property, Plant & Equipment are stated at their original cost of acquisition inclusive of inwards freight, duties and expenditure incurred on the acquisition, construction/installation bringing the assets to its working condition for its intended use. Old transmissions lines re-vested with HPPTCL vide Govt. Notification dated 10.06.2010 and transferred from HPSEBL have been taken as asset of the company even though title/ registration of the assets has not been transferred in the name of the company.

i) In the case of commissioned assets where final settlement of bills are yet to be effected, capitalization is made on provisional basis on the receipt of Completion certificate from Engineer-in-charge subject to necessary adjustment in the final settlement of account.

j) Payment made/liabilities booked provisionally towards award, compensation/rehabilitation and other expenses/amounts deposited with Land Acquiring Authorities are treated as cost of land. No provisions are made for land yet to be acquired. Payments made/liability booked provisionally towards compensation (including interest on enhanced compensation) awarded by the court till the date of courts award /rehabilitation and other expenses related to land in possession are treated as cost of land.

k) Depreciation on transmission assets which are put to use till the end of financial year is provided at the rate /amount notified by HPERC and CERC (Terms &conditions for Tariff) Regulation 2014.

l) Depreciation on individual assets below Rs 5000/- purchased before 1.4.2014 was provided at rate of 100% taking useful life as 1 year and WDV Re 1/- per asset.

m) The depreciation on other fixed assets (Other than Transmission Assets) has been provided as per written down value method in accordance with manner prescribed in schedule II of the Companies Act 2013.

n) Transmission fixed assets are depreciated to the extent of 90% of the cost of assets on SLM basis and 10% is retained as residual value.

o) Individual asset costing up to Rs 2500 /- are depreciated in the year in which they are put to use after 1.4.2014.

p) The depreciation has been provided separately for each asset and is duly recognized in profit and loss account

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42 37

on previous experience and other factors considered reasonable and prudent in the circumstances. Estimates and underlying assumptions are reviewed on an ongoing basisand could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and if material their effects are disclosed in the notes to the financial statements. In order to enhance the understanding of the financial statements, information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that may have the most significant effect on the amounts recognized in the financial statements are included in the following notes.

(E) EXPENDITURE ATTRIBUTABLE TO CONSTRUCTION:-The statement showingexpenditure attributable to construction period has been prepared as most of the projectsare still under construction stage;therefore expenditure not directly attributable to assets is treated as expenditure during the construction period. This includes entire amount of indirect expenditure incurred at Corporate Office and different PIU's during construction including finance costs and all this expenditure has been shown as net of pre-construction income. Further till 31/03/2018, company was following the practice of charging 50% of Indirect Expenditure to Revenue and balance was charged to Expenditure Attributable to Construction Period. However in current year, company has charged whole In-Direct Expenditure (100%) to Expenditure Attributable to Construction Period.

In FY 2018-19, company has also allocated the Whole expenditure attributable to Pre-Construction Period up to 31/03/2019 to relevant projects as Departmental Cost (DC) and Interest During Construction (IDC).

During the yearthe company has also changed the classification of “Preliminary Expenses Not Written Off” from CWIP to other non-current assets. Also these expenses will be written off in period of 5 years starting from FY 2018-19.

(III) SIGNIFICANT ACCOUNTING POLICIES: A summary of significant accounting policies applied in the preparation of financial statements as given below have been applied consistently to all periods presented in the financial statements.

1. PROPERTY, PLANT AND EQUIPMENT (PPE)a) Property, Plant and Equipment are carried in Balance Sheet as per applicable Ind AS 16 b) An item of PPE is recognized as an asset if it is probable that future economic benefits associated

with the item will flow to the Company and the cost of the item can be measured reliably.c) PPE are initially measured at cost of acquisition/construction including decommissioning or

restoration cost wherever required. The cost includes expenditure that is directly attributable to the acquisition/construction of the asset. In cases where final settlement of bills with contractors is pending, but the asset is complete and available for use, capitalization is done on estimated basis subject to necessary adjustments, including those arising out of settlement of arbitration/court cases.

4338

d) In earlier years the consumer contribution received from “Independent Power Producers” was booked as liability and was not adjusted against cost of concerned assets. During the current year, the consumer contribution has been adjusted against the cost of concerned projects, thereby reducing the cost of assets. In FY 2018-19 the total amount of Rs. 2,49,70,444.00 is adjusted against cost of respective assets.

e) After initial recognition, Property, Plant and Equipment is carried at cost less accumulated depreciation/ amortization and accumulated impairment losses, if any.

f) Stand by equipment and servicing equipment which meets the recognition criteria of Property, Plant and Equipment are capitalized.

g) Property, Plant & Equipment over which the company has control, though created on land not belonging to the Company are included under Property, Plant and Equipment.

h) Property, Plant & Equipment are stated at their original cost of acquisition inclusive of inwards freight, duties and expenditure incurred on the acquisition, construction/installation bringing the assets to its working condition for its intended use. Old transmissions lines re-vested with HPPTCL vide Govt. Notification dated 10.06.2010 and transferred from HPSEBL have been taken as asset of the company even though title/ registration of the assets has not been transferred in the name of the company.

i) In the case of commissioned assets where final settlement of bills are yet to be effected, capitalization is made on provisional basis on the receipt of Completion certificate from Engineer-in-charge subject to necessary adjustment in the final settlement of account.

j) Payment made/liabilities booked provisionally towards award, compensation/rehabilitation and other expenses/amounts deposited with Land Acquiring Authorities are treated as cost of land. No provisions are made for land yet to be acquired. Payments made/liability booked provisionally towards compensation (including interest on enhanced compensation) awarded by the court till the date of courts award /rehabilitation and other expenses related to land in possession are treated as cost of land.

k) Depreciation on transmission assets which are put to use till the end of financial year is provided at the rate /amount notified by HPERC and CERC (Terms &conditions for Tariff) Regulation 2014.

l) Depreciation on individual assets below Rs 5000/- purchased before 1.4.2014 was provided at rate of 100% taking useful life as 1 year and WDV Re 1/- per asset.

m) The depreciation on other fixed assets (Other than Transmission Assets) has been provided as per written down value method in accordance with manner prescribed in schedule II of the Companies Act 2013.

n) Transmission fixed assets are depreciated to the extent of 90% of the cost of assets on SLM basis and 10% is retained as residual value.

o) Individual asset costing up to Rs 2500 /- are depreciated in the year in which they are put to use after 1.4.2014.

p) The depreciation has been provided separately for each asset and is duly recognized in profit and loss account

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39

2. CAPITAL WORK IN PROGRESSa) Capital work in progress are carried in Balance Sheet as per applicable Ind ASb) Expenditure incurred on assets under construction (including a project) is carried at cost under

Capital Work in Progress (CWIP). Such costs comprise purchase price of assets including import duties and non-refundable taxes (after deducting trade discounts and rebates), expenditure in relation to survey and investigation activities of projects, cost of site preparation, initial delivery and handling charges, installation and assembly costs, etc.

c) Costs including employee benefits, professional fees, expenditure on maintenance and up-gradation of common public facilities, interest during construction and other costs that are 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 are accumulated under “Expenditure Attributable to Construction (EAC)” and subsequently allocated on systematic basis to major immovable assets, other than land and infrastructure facilities on commissioning of projects.

d) Expenditure during construction period relating to survey and investigation, LADA, Relief and Rehabilitation, Environment and Ecology, administrative expenses of the project are termed as “Expenditure attributable to construction” and grouped/ carried to capital work – in- progress allocated to respective PPE on completion /construction of the project.

e) Payment against Deposit works is accounted for on the basis of statement of accounts received from the contractors/departments and accepted by HPPTCL.

f) Claims of price variation in case of contractors are accounted for on receipt on bills and acceptance thereof by HPPTCL as per term of contract.

g) Liquidated damages recoverable are accounted for on the basis of actual receipt/ adjustment on completion of project.

h) In respect of supply-cum-erection contracts, the value of supplies received at construction site is taken as capital works-in-progress.

i) Expenditure on capital assets which are directly identifiable to asset is directly charged to such assets and where such identification is not possible, the expenditure is accounted for under “Expenditure Attributable To Construction” pending allocation.

j) Capital expenditure not represented by the assets is reflected as distinct item in capital work in progress till the period of completion and it will be capitalized after the commencement of full commercial operation as per generally accepted accounting principles.

3. INVENTORIESMost of the projects are on turnkey basis and inventories are capitalized as capital work in progress. Company has NIL inventories meant for operation and maintenance during the year.

4. EXPENDITURE ATTRIBUTABLE TO CONSTRUCTION AND PROFIT & LOSSa) Since the company has not yet started full commercial operation, Profit & Loss Account has been

prepared for STU & Transmission income of completed projects and lines transferred from HPSEBL.The statement showing expenditure attributable to construction of uncompleted projects during construction has been prepared and necessary detail for Statement of Profit and Loss as required by Schedule-II of Companies Act, 2013 have been disclosed in the said statement.

40

b) Pre-Operative Incidental expenditure/ expenses attributable to construction during Construction period are brought forward from year to year as part of Capital Works-in-Progress. This whole expenditure upto 31.3.2019 are allocated to concerned projects under CWIP for capitalization on commencement of commercial operation of the transmission units. The appropriate accounting treatment at the time of commercial operation will be determined in accordance with the Ind AS.

5. FINANCIAL ASSETS A financial asset is any asset that is:· Cash;· An equity instrument of another entity;· A contractual right:

-to receive cash or other financial asset from another entity; or-to exchange financial asset or financial liabilities with another entity under conditions that are potentially favorable to the entity; or

· A contract that will or may be settled in the entity's own equity instruments under certain circumstances.

A financial asset is recognized only when the Company becomes party to the Contractual provisions of the instrument.

Financial assets of the Company comprises of cash and cash equivalents, bank balances, security deposit, claims recoverable etc.

a) Classification The Company classifies its financial assets in the following categories:

• At amortized cost,• At fair value through other comprehensive income (FVTOCI), and the classification

depends on the following:(a) The entity's business model for managing the financial assets and(b) The contractual cash flow characteristics of the financial asset.

For assets measured at fair value, gains and losses will either be recorded in the Statement of Profit and Loss and expenditure attributable to construction or other comprehensive Income.

b) Initial recognition and measurementAll financial assets are recognized initially at fair value,plus in the case of financial assets not recorded at fair value through profit or Loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the Statement of Profit and Loss and Expenditure attributable to construction.The Company measures other receivable, staff advance, etc. at their transaction price, if the other receivable, staff advance, etc. do not contain a significant financing component.

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39

2. CAPITAL WORK IN PROGRESSa) Capital work in progress are carried in Balance Sheet as per applicable Ind ASb) Expenditure incurred on assets under construction (including a project) is carried at cost under

Capital Work in Progress (CWIP). Such costs comprise purchase price of assets including import duties and non-refundable taxes (after deducting trade discounts and rebates), expenditure in relation to survey and investigation activities of projects, cost of site preparation, initial delivery and handling charges, installation and assembly costs, etc.

c) Costs including employee benefits, professional fees, expenditure on maintenance and up-gradation of common public facilities, interest during construction and other costs that are 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 are accumulated under “Expenditure Attributable to Construction (EAC)” and subsequently allocated on systematic basis to major immovable assets, other than land and infrastructure facilities on commissioning of projects.

d) Expenditure during construction period relating to survey and investigation, LADA, Relief and Rehabilitation, Environment and Ecology, administrative expenses of the project are termed as “Expenditure attributable to construction” and grouped/ carried to capital work – in- progress allocated to respective PPE on completion /construction of the project.

e) Payment against Deposit works is accounted for on the basis of statement of accounts received from the contractors/departments and accepted by HPPTCL.

f) Claims of price variation in case of contractors are accounted for on receipt on bills and acceptance thereof by HPPTCL as per term of contract.

g) Liquidated damages recoverable are accounted for on the basis of actual receipt/ adjustment on completion of project.

h) In respect of supply-cum-erection contracts, the value of supplies received at construction site is taken as capital works-in-progress.

i) Expenditure on capital assets which are directly identifiable to asset is directly charged to such assets and where such identification is not possible, the expenditure is accounted for under “Expenditure Attributable To Construction” pending allocation.

j) Capital expenditure not represented by the assets is reflected as distinct item in capital work in progress till the period of completion and it will be capitalized after the commencement of full commercial operation as per generally accepted accounting principles.

3. INVENTORIESMost of the projects are on turnkey basis and inventories are capitalized as capital work in progress. Company has NIL inventories meant for operation and maintenance during the year.

4. EXPENDITURE ATTRIBUTABLE TO CONSTRUCTION AND PROFIT & LOSSa) Since the company has not yet started full commercial operation, Profit & Loss Account has been

prepared for STU & Transmission income of completed projects and lines transferred from HPSEBL.The statement showing expenditure attributable to construction of uncompleted projects during construction has been prepared and necessary detail for Statement of Profit and Loss as required by Schedule-II of Companies Act, 2013 have been disclosed in the said statement.

40

b) Pre-Operative Incidental expenditure/ expenses attributable to construction during Construction period are brought forward from year to year as part of Capital Works-in-Progress. This whole expenditure upto 31.3.2019 are allocated to concerned projects under CWIP for capitalization on commencement of commercial operation of the transmission units. The appropriate accounting treatment at the time of commercial operation will be determined in accordance with the Ind AS.

5. FINANCIAL ASSETS A financial asset is any asset that is:· Cash;· An equity instrument of another entity;· A contractual right:

-to receive cash or other financial asset from another entity; or-to exchange financial asset or financial liabilities with another entity under conditions that are potentially favorable to the entity; or

· A contract that will or may be settled in the entity's own equity instruments under certain circumstances.

A financial asset is recognized only when the Company becomes party to the Contractual provisions of the instrument.

Financial assets of the Company comprises of cash and cash equivalents, bank balances, security deposit, claims recoverable etc.

a) Classification The Company classifies its financial assets in the following categories:

• At amortized cost,• At fair value through other comprehensive income (FVTOCI), and the classification

depends on the following:(a) The entity's business model for managing the financial assets and(b) The contractual cash flow characteristics of the financial asset.

For assets measured at fair value, gains and losses will either be recorded in the Statement of Profit and Loss and expenditure attributable to construction or other comprehensive Income.

b) Initial recognition and measurementAll financial assets are recognized initially at fair value,plus in the case of financial assets not recorded at fair value through profit or Loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the Statement of Profit and Loss and Expenditure attributable to construction.The Company measures other receivable, staff advance, etc. at their transaction price, if the other receivable, staff advance, etc. do not contain a significant financing component.

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46 41

c) Subsequent measurement Debt instruments at amortized cost

A 'debt instrument' is measured at the amortized cost if both the following conditions are met:i) The asset is held within a business model whose objective is to hold assets for collecting

contractual cash flows, andii) Contractual terms of the asset give rise on specified dates to cash flows that are Solely

Payments of Principal and Interest (SPPI) on the principal amount outstanding.iii) After initial measurement, such financial assets are subsequently measured at amortized cost using

the Effective Interest Rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.

6. FINANCIAL LIABILITIESA financial liability is any liability that is:· A contractual obligation -to deliver cash or another financial asset to another entity; or -to exchange financial asset or financial liabilities with another entity under conditions that are

potentially unfavorable to the entity; or· A contract that will or may be settled in the entity's own equity instruments under certain

circumstances. The Company's financial liabilities include loans and borrowing, securities and other payables.

a) Classification, initial recognition and measurement Financial liabilities are recognized initially at fair value minus transaction costs that are directly attributable and subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and fair value at initial recognition is recognized in other comprehensive income.Borrowings are classified as non-current liabilities only when the Company has unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

b) Subsequent measurementAfter initial recognition, financial liabilities are subsequently measured at amortized cost using the EIR method. Gains and Losses are recognized in the Statement of Profit and Loss (Incidental expenses during the construction period) or in the carrying amount of an asset if another standard permit such inclusion, when the liabilities are derecognized as well as through the EIR amortization process.Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the Statement of Profit and Loss (Incidental expenses during the construction period).

7. BORROWING COSTSBorrowing costs directly attributable to the acquisition, construction or production of qualifying

4742

assets that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the asset.

8. Statement of Cash Flowsa. Statement of cash flows is prepared in accordance with indirect method prescribed in Ind AS 7-

'Statement of Cash Flows'.b. In preparing the statement of cash flow the items has been classified into Operating, investing

and financing activities.c. For the purpose of preparing cash flows the items are defined as:

i. Cash comprising cash in hand and demand depositsii. Cash equivalents are short term, highly liquid investments that are readily convertible

to known amounts of cash and which are subject to an insignificant risk of changes in value.

iii. Cash flows are inflows and outflows of cash and cash equivalentsiv. Operating activities are principal revenue producing activities of the entity and other

activities that are not investing or financing activitiesv. Investing Activities are the acquisition and disposal of long term assets and other

investments not included in cash equivalentsvi. Financing activities are activities that result in changes in size and composition of the

contributed equity and borrowings of the entity.

9. Current Versus Non-Current ClassificationThe Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.

a) An asset is current when it is:• Expected to be realized or intended to be sold or consumed in the normal operating

cycle• Held primarily for the purpose of trading• Expected to be realized within twelve months after the reporting period, or• Cash or cash equivalent unless restricted from being exchanged or used to settle a

liability for at least twelve months after the reporting period. All other assets are classified as non-current.

b) A liability is current when:• It is expected to be settled in the normal operating cycle• It is held primarily for the purpose of trading• It is due to be settled within twelve months after the reporting period, or• There is no unconditional right to defer the settlement of the liability for at least twelve

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

10. Revenue Recognition: a) Revenue from transmission charges is recognized on the basis of tariff approved by HPERC /

CERC and bills issued by HPPTCL during the year.

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46 41

c) Subsequent measurement Debt instruments at amortized cost

A 'debt instrument' is measured at the amortized cost if both the following conditions are met:i) The asset is held within a business model whose objective is to hold assets for collecting

contractual cash flows, andii) Contractual terms of the asset give rise on specified dates to cash flows that are Solely

Payments of Principal and Interest (SPPI) on the principal amount outstanding.iii) After initial measurement, such financial assets are subsequently measured at amortized cost using

the Effective Interest Rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.

6. FINANCIAL LIABILITIESA financial liability is any liability that is:· A contractual obligation -to deliver cash or another financial asset to another entity; or -to exchange financial asset or financial liabilities with another entity under conditions that are

potentially unfavorable to the entity; or· A contract that will or may be settled in the entity's own equity instruments under certain

circumstances. The Company's financial liabilities include loans and borrowing, securities and other payables.

a) Classification, initial recognition and measurement Financial liabilities are recognized initially at fair value minus transaction costs that are directly attributable and subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and fair value at initial recognition is recognized in other comprehensive income.Borrowings are classified as non-current liabilities only when the Company has unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

b) Subsequent measurementAfter initial recognition, financial liabilities are subsequently measured at amortized cost using the EIR method. Gains and Losses are recognized in the Statement of Profit and Loss (Incidental expenses during the construction period) or in the carrying amount of an asset if another standard permit such inclusion, when the liabilities are derecognized as well as through the EIR amortization process.Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the Statement of Profit and Loss (Incidental expenses during the construction period).

7. BORROWING COSTSBorrowing costs directly attributable to the acquisition, construction or production of qualifying

4742

assets that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the asset.

8. Statement of Cash Flowsa. Statement of cash flows is prepared in accordance with indirect method prescribed in Ind AS 7-

'Statement of Cash Flows'.b. In preparing the statement of cash flow the items has been classified into Operating, investing

and financing activities.c. For the purpose of preparing cash flows the items are defined as:

i. Cash comprising cash in hand and demand depositsii. Cash equivalents are short term, highly liquid investments that are readily convertible

to known amounts of cash and which are subject to an insignificant risk of changes in value.

iii. Cash flows are inflows and outflows of cash and cash equivalentsiv. Operating activities are principal revenue producing activities of the entity and other

activities that are not investing or financing activitiesv. Investing Activities are the acquisition and disposal of long term assets and other

investments not included in cash equivalentsvi. Financing activities are activities that result in changes in size and composition of the

contributed equity and borrowings of the entity.

9. Current Versus Non-Current ClassificationThe Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.

a) An asset is current when it is:• Expected to be realized or intended to be sold or consumed in the normal operating

cycle• Held primarily for the purpose of trading• Expected to be realized within twelve months after the reporting period, or• Cash or cash equivalent unless restricted from being exchanged or used to settle a

liability for at least twelve months after the reporting period. All other assets are classified as non-current.

b) A liability is current when:• It is expected to be settled in the normal operating cycle• It is held primarily for the purpose of trading• It is due to be settled within twelve months after the reporting period, or• There is no unconditional right to defer the settlement of the liability for at least twelve

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

10. Revenue Recognition: a) Revenue from transmission charges is recognized on the basis of tariff approved by HPERC /

CERC and bills issued by HPPTCL during the year.

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48 43

b) Revenue of short-term open access charges is recognized on accrual basis to the extent ascertainable from Power System Corporation, NRLDC, SLDC and other user which is on the basis of actual transmission of power and directly credited to our account. As per true up tariff order of HPERC, 75% income has been transferred to HPSEBL. The provision for STOA and STU Income for FY 2018-19 received after 31.3.2019 has been made in books of accounts.

c) Surcharge on late payment billed to HPSEB has been withdrawn till the adjustment of credit balance payable by HPPTCL as per MOM dated 6.12.2017. After adjustment of balance payable, surcharge shall be provided for on receipt basis as per HPERC regulation.

d) Value of scrap is adjusted in the accounts as and when sold.e) Revenue from other sources is recognized on accrual basis.f) Miscellaneous Income comprising sale of tender forms, interest, guest house income, RTI fees,

EMD forfeited and other misc. receipt has been transferred and adjusted against Expenditure Attributable To Construction Period and has not been recognized in Statement of Profit and Loss.

11. LIABILITIES:a) Liabilities have been provided for in the books of accounts for all known liabilities existing on

the date of Balance Sheet. Unknown liabilities or liabilities whose amount cannot be determined with any reasonable degree of accuracy are not provided for.

b) Liabilities, if any, for capital works executed but not measured are not provided as the works are yet to be finally inspected and accepted by HPPTCL. Similarly a liability for material in transit is not provided till receipt, inspection and acceptance of the material by the Company.

c) Contingent Liabilities-

Contingent Liabilities not provided for in respect of:

As on 31.03.19

(Figures In lakh)

As on 31.03.18

(Figures In lakh)

(i) Income tax demand for F.Y.2009 -10, 2010 -11, 2011-12, 2012 -13, 2013 -14, 2014-15 & 2015 -16 deposited/ adjusted from advance tax not provided in books of accounts.

2422.97 2559.29

(ii) Estimated amount of contract remaining to be executed on capital account (net of advances):

INR 63383.31 35156.72

US$ 27.79 20.57

4944

12. Retirement and other employee benefitsa) Defined Contribution Plan: Corporation's contribution paid /payable during the year to

provident fund is recognized in the statement of Profit & Loss and Expenditure Attributable to Construction allocated to concerned project.

b) Defined Benefit Plan (Gratuity,Pension Contribution & Leave Encashment): Since almost all employees of the Corporation as on Balance Sheet date are on Contract Basis / deputation/secondment basis, it is not possible for the Corporation to calculate actuarial valuation of leave encashment,gratuity and other benefits payable to employees on deputation. Therefore Corporation will not be able to follow Ind AS 19 “Employee Benefits” issued by the Institute of Chartered Accountants of India. However ,the provisions for leave salary &pension contribution in r/o HPSEBL employees deployed on secondment basis is made as per Appendix II of FR upto the year 2018-19. The provision for gratuity and leave salary contribution of employees other than HPSEB has also been made during the year as per terms of deputation.

13. Earnings per share Earning Per Share is calculated as per Ind AS 33: Earnings Per Share. Basic Earnings per Share is calculated by dividing profit or loss attributable to ordinary equity

holders by weighted average no. of ordinary shares outstanding during the period. Diluted earnings per share is computed using the net profit for the year attributable to the

shareholder and weighted average number of equity and potential equity share outstanding during the year, except where the result would be anti-dilutive.

14. Provisions and contingencies Provisions are recognized when the Company has a present obligation (legal or constructive) as

a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of provisions to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or 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 recognized.

15. Taxes on Incomea) Taxes on Income have been computed on the basis of Ind AS 12. As per calculations made

there is no deferred tax Asset or Deferred tax liabilityb) The Company has not yet come into full commercial operation and there is a loss on operational

projects including income of old transmission lines transferred from HPSEBL during the current year, hence no tax is payable for current year. Relying on various judgements of

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

48 43

b) Revenue of short-term open access charges is recognized on accrual basis to the extent ascertainable from Power System Corporation, NRLDC, SLDC and other user which is on the basis of actual transmission of power and directly credited to our account. As per true up tariff order of HPERC, 75% income has been transferred to HPSEBL. The provision for STOA and STU Income for FY 2018-19 received after 31.3.2019 has been made in books of accounts.

c) Surcharge on late payment billed to HPSEB has been withdrawn till the adjustment of credit balance payable by HPPTCL as per MOM dated 6.12.2017. After adjustment of balance payable, surcharge shall be provided for on receipt basis as per HPERC regulation.

d) Value of scrap is adjusted in the accounts as and when sold.e) Revenue from other sources is recognized on accrual basis.f) Miscellaneous Income comprising sale of tender forms, interest, guest house income, RTI fees,

EMD forfeited and other misc. receipt has been transferred and adjusted against Expenditure Attributable To Construction Period and has not been recognized in Statement of Profit and Loss.

11. LIABILITIES:a) Liabilities have been provided for in the books of accounts for all known liabilities existing on

the date of Balance Sheet. Unknown liabilities or liabilities whose amount cannot be determined with any reasonable degree of accuracy are not provided for.

b) Liabilities, if any, for capital works executed but not measured are not provided as the works are yet to be finally inspected and accepted by HPPTCL. Similarly a liability for material in transit is not provided till receipt, inspection and acceptance of the material by the Company.

c) Contingent Liabilities-

Contingent Liabilities not provided for in respect of:

As on 31.03.19

(Figures In lakh)

As on 31.03.18

(Figures In lakh)

(i) Income tax demand for F.Y.2009 -10, 2010 -11, 2011-12, 2012 -13, 2013 -14, 2014-15 & 2015 -16 deposited/ adjusted from advance tax not provided in books of accounts.

2422.97 2559.29

(ii) Estimated amount of contract remaining to be executed on capital account (net of advances):

INR 63383.31 35156.72

US$ 27.79 20.57

4944

12. Retirement and other employee benefitsa) Defined Contribution Plan: Corporation's contribution paid /payable during the year to

provident fund is recognized in the statement of Profit & Loss and Expenditure Attributable to Construction allocated to concerned project.

b) Defined Benefit Plan (Gratuity,Pension Contribution & Leave Encashment): Since almost all employees of the Corporation as on Balance Sheet date are on Contract Basis / deputation/secondment basis, it is not possible for the Corporation to calculate actuarial valuation of leave encashment,gratuity and other benefits payable to employees on deputation. Therefore Corporation will not be able to follow Ind AS 19 “Employee Benefits” issued by the Institute of Chartered Accountants of India. However ,the provisions for leave salary &pension contribution in r/o HPSEBL employees deployed on secondment basis is made as per Appendix II of FR upto the year 2018-19. The provision for gratuity and leave salary contribution of employees other than HPSEB has also been made during the year as per terms of deputation.

13. Earnings per share Earning Per Share is calculated as per Ind AS 33: Earnings Per Share. Basic Earnings per Share is calculated by dividing profit or loss attributable to ordinary equity

holders by weighted average no. of ordinary shares outstanding during the period. Diluted earnings per share is computed using the net profit for the year attributable to the

shareholder and weighted average number of equity and potential equity share outstanding during the year, except where the result would be anti-dilutive.

14. Provisions and contingencies Provisions are recognized when the Company has a present obligation (legal or constructive) as

a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of provisions to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or 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 recognized.

15. Taxes on Incomea) Taxes on Income have been computed on the basis of Ind AS 12. As per calculations made

there is no deferred tax Asset or Deferred tax liabilityb) The Company has not yet come into full commercial operation and there is a loss on operational

projects including income of old transmission lines transferred from HPSEBL during the current year, hence no tax is payable for current year. Relying on various judgements of

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

50 45

appellant authorities and court, the Company has not deposited income tax on interest income.c) The detailed status of income tax cases of previous years is as below:-(i) The assessment for the FY 2009-10 has been completed by the Assessing Authority and demand of

Rs. 52.66 Lakhs was raised which stands deposited/adjusted against advance tax. HPPTCL had filed appeal before CIT (A) & ITAT Chandigarh and same were dismissed. Now HPPTCL has filed appeal before Hon'ble High Court of Himachal Pradesh against orders of ITAT Chandigarh. After adjustment, a sum of Rs. 47.64 Lakhs stands as Debit in Advance Tax & TDS Account.

(ii) The assessment for the FY 2010-11 has been completed by the Assessing Authority and demand of Rs. 156.12 Lakhs was raised which stands deposited/adjusted against advance tax. HPPTCL had filed appeal before CIT (A) & ITAT Chandigarh and same were dismissed. Now HPPTCL has filed appeal before Hon'ble High Court of Himachal Pradesh against orders of ITAT Chandigarh. After adjustment, a sum of Rs. 154.14 Lakhs stands as Debit in Advance Tax & TDS Account.

(iii) The assessment for the FY 2011-12 has been completed by the Assessing Authority and demand of Rs. 341.17 Lakhs was raised which stands deposited/adjusted against advance tax. HPPTCL had filed appeal before CIT (A) & ITAT Chandigarh and same were dismissed. Now HPPTCL has filed appeal before Hon'ble High Court of Himachal Pradesh against orders of ITAT Chandigarh. After adjustment, a sum of Rs. 327.14 Lakhs stands as Debit in Advance Tax & TDS Account.

(iv) The assessment for the FY 2012-13 has been completed by the Assessing Authority and demand of Rs. 476.04 Lakhs was raised which stands deposited/adjusted against advance tax. HPPTCL had filed appeal before CIT (A) & ITAT Chandigarh and same were dismissed. Now HPPTCL has filed appeal before Hon'ble High Court of Himachal Pradesh against orders of ITAT Chandigarh. After adjustment, a sum of Rs. 428.62 Lakhs stands as Debit in Advance Tax & TDS Account.

(v) The assessment for the FY 2013-14 has been completed by the Assessing Authority and demand of Rs. 710.90 was raised. Company filed rectification u/s 154 and demand was reduced to 688.69 Lakhs after the rectification effect. HPPTCL had filed appeal before CIT(A) against the oder of Assessing Authority and same was dismissed. Now HPPTCL has filed appeal before ITAT Chandigarh against the order of CIT (Appeal). After adjustment, a sum of Rs. 540.87 Lakhs stands as Debit in Advance Tax & TDS Account.

(vi) The assessment for the FY 2014-15 has been completed by the Assessing Authority and demand of Rs. 441.79 Lakhs was raised. HPPTCL had filed appeal before CIT(A) against the order of Assessing Authority and same was dismissed. Now HPPTCL has filed appeal before ITAT Chandigarh against the order of CIT (Appeal).

Out of this total demand of Rs. 441.79 Lakhs, amount of Rs. 203.88 Lakhs stands as Debit in Advance Tax & TDS Account and balance amount of Rs. 237.91 Lakhs is yet to be deposited. However, after balance sheet date Income Tax department has proposed to adjust refund of Rs. 84.05 Lakh pertaining to F.Y. 2012-13 against the above demand. After adjustment of above refund Rs. 153.89 Lakh remains as balance demand.

(vii) The assessment for FY 2015-16 has been completed. Income tax department has determined a total demand of Rs. 370.26 Lakhs in the assessment. Department has already adjusted the demand to the the extent of advance tax and TDS amounting to Rs. 157.79 lakh. Balance demand of Rs. 212.47 lakh along with refund earlier paid Rs. 102.01 has been demanded by department as payable. Further against the total demand of Rs. 370.26 Lakhs, provision of Rs. 103.76 Lakhs has already been made in books in F.Y. 2015-16. HPPTCL has also filed an appeal before CIT(Appeal) against the assessment order and deposited 20% demand i.e. Rs. 62.90 Lakh. Income tax expenditure of Rs.266.5 lakh has not been provided for In books of

5146

accounts as the case is pending with CIT(A). Our books shows Rs. 14.93 lakh as receivable from Income Tax department.

(viii) Penalty Demand u/s 271(1)( c) for FY 2012-13 of Rs.402.82 Lakhs was raised by ACIT Circle Shimla vide its penalty order dated 08/11/2017. HPPTCL filed appeal before CIT (Appeals) Solan against this order which has been allowed by the appellate authority in company's favour vide its order dated 20/03/2019. Rs. 80.05 Lakhs deposited against this demand along with interest on above would be adjusted by the department against the tax demands for FY 2014-15 as per detailed in note no. 15(vi).

16. Prior Period Adjustments HPPTCL follows the practice of making adjustments for prior period items through expenses/

income of previous year in the current year except few minor items. During the year Company has booked Rs. 6,36,15,084/- and Rs. 44,93,048/- as prior period expense and Prior period income respectively.

17. Segment Reporting a. Transmission of Power is the principal business of the company and there is no reportable

segment as per IndAS-108 'Operating Segments'.b. The Company is having a single geographical segment as all its projects are located within the

country.

(IV) NOTES ON ACCOUNTS:1. Additional information

Particulars (Rs. in lakh) (Rs. in lakh) Yr. Ended 31.03.19

Yr. Ended 31.03.18

a) Expenditure in Foreign Currencies (Actual outgo): - Interest on borrowings 0.00 0.00 - Commitment Charges 0.00 0.00 - Foreign Travelling (US$) 0.00 0.00 - Capital Expenditure (US$) 1.33 0.00

TOTAL:- (US$ ) 1.33 0.00 b) Earnings in Foreign Currencies: 0.00 0.00 c) Auditors remuneration:

-Statutory Audit Fee 1.21 1.75 -Tax Audit Fee 1.00 0.00 -Other Matters 1.65 0.29

TOTAL 3.86 2.04

d) Managerial Remuneration: - Salary and allowances 61.74 54.56 - Contribution to PF and other funds 2.65 1.80 - Perquisites 3.36 7.34 - Sitting fee to Directors 0.00 0.00

TOTAL 67.75 63.70

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

50 45

appellant authorities and court, the Company has not deposited income tax on interest income.c) The detailed status of income tax cases of previous years is as below:-(i) The assessment for the FY 2009-10 has been completed by the Assessing Authority and demand of

Rs. 52.66 Lakhs was raised which stands deposited/adjusted against advance tax. HPPTCL had filed appeal before CIT (A) & ITAT Chandigarh and same were dismissed. Now HPPTCL has filed appeal before Hon'ble High Court of Himachal Pradesh against orders of ITAT Chandigarh. After adjustment, a sum of Rs. 47.64 Lakhs stands as Debit in Advance Tax & TDS Account.

(ii) The assessment for the FY 2010-11 has been completed by the Assessing Authority and demand of Rs. 156.12 Lakhs was raised which stands deposited/adjusted against advance tax. HPPTCL had filed appeal before CIT (A) & ITAT Chandigarh and same were dismissed. Now HPPTCL has filed appeal before Hon'ble High Court of Himachal Pradesh against orders of ITAT Chandigarh. After adjustment, a sum of Rs. 154.14 Lakhs stands as Debit in Advance Tax & TDS Account.

(iii) The assessment for the FY 2011-12 has been completed by the Assessing Authority and demand of Rs. 341.17 Lakhs was raised which stands deposited/adjusted against advance tax. HPPTCL had filed appeal before CIT (A) & ITAT Chandigarh and same were dismissed. Now HPPTCL has filed appeal before Hon'ble High Court of Himachal Pradesh against orders of ITAT Chandigarh. After adjustment, a sum of Rs. 327.14 Lakhs stands as Debit in Advance Tax & TDS Account.

(iv) The assessment for the FY 2012-13 has been completed by the Assessing Authority and demand of Rs. 476.04 Lakhs was raised which stands deposited/adjusted against advance tax. HPPTCL had filed appeal before CIT (A) & ITAT Chandigarh and same were dismissed. Now HPPTCL has filed appeal before Hon'ble High Court of Himachal Pradesh against orders of ITAT Chandigarh. After adjustment, a sum of Rs. 428.62 Lakhs stands as Debit in Advance Tax & TDS Account.

(v) The assessment for the FY 2013-14 has been completed by the Assessing Authority and demand of Rs. 710.90 was raised. Company filed rectification u/s 154 and demand was reduced to 688.69 Lakhs after the rectification effect. HPPTCL had filed appeal before CIT(A) against the oder of Assessing Authority and same was dismissed. Now HPPTCL has filed appeal before ITAT Chandigarh against the order of CIT (Appeal). After adjustment, a sum of Rs. 540.87 Lakhs stands as Debit in Advance Tax & TDS Account.

(vi) The assessment for the FY 2014-15 has been completed by the Assessing Authority and demand of Rs. 441.79 Lakhs was raised. HPPTCL had filed appeal before CIT(A) against the order of Assessing Authority and same was dismissed. Now HPPTCL has filed appeal before ITAT Chandigarh against the order of CIT (Appeal).

Out of this total demand of Rs. 441.79 Lakhs, amount of Rs. 203.88 Lakhs stands as Debit in Advance Tax & TDS Account and balance amount of Rs. 237.91 Lakhs is yet to be deposited. However, after balance sheet date Income Tax department has proposed to adjust refund of Rs. 84.05 Lakh pertaining to F.Y. 2012-13 against the above demand. After adjustment of above refund Rs. 153.89 Lakh remains as balance demand.

(vii) The assessment for FY 2015-16 has been completed. Income tax department has determined a total demand of Rs. 370.26 Lakhs in the assessment. Department has already adjusted the demand to the the extent of advance tax and TDS amounting to Rs. 157.79 lakh. Balance demand of Rs. 212.47 lakh along with refund earlier paid Rs. 102.01 has been demanded by department as payable. Further against the total demand of Rs. 370.26 Lakhs, provision of Rs. 103.76 Lakhs has already been made in books in F.Y. 2015-16. HPPTCL has also filed an appeal before CIT(Appeal) against the assessment order and deposited 20% demand i.e. Rs. 62.90 Lakh. Income tax expenditure of Rs.266.5 lakh has not been provided for In books of

5146

accounts as the case is pending with CIT(A). Our books shows Rs. 14.93 lakh as receivable from Income Tax department.

(viii) Penalty Demand u/s 271(1)( c) for FY 2012-13 of Rs.402.82 Lakhs was raised by ACIT Circle Shimla vide its penalty order dated 08/11/2017. HPPTCL filed appeal before CIT (Appeals) Solan against this order which has been allowed by the appellate authority in company's favour vide its order dated 20/03/2019. Rs. 80.05 Lakhs deposited against this demand along with interest on above would be adjusted by the department against the tax demands for FY 2014-15 as per detailed in note no. 15(vi).

16. Prior Period Adjustments HPPTCL follows the practice of making adjustments for prior period items through expenses/

income of previous year in the current year except few minor items. During the year Company has booked Rs. 6,36,15,084/- and Rs. 44,93,048/- as prior period expense and Prior period income respectively.

17. Segment Reporting a. Transmission of Power is the principal business of the company and there is no reportable

segment as per IndAS-108 'Operating Segments'.b. The Company is having a single geographical segment as all its projects are located within the

country.

(IV) NOTES ON ACCOUNTS:1. Additional information

Particulars (Rs. in lakh) (Rs. in lakh) Yr. Ended 31.03.19

Yr. Ended 31.03.18

a) Expenditure in Foreign Currencies (Actual outgo): - Interest on borrowings 0.00 0.00 - Commitment Charges 0.00 0.00 - Foreign Travelling (US$) 0.00 0.00 - Capital Expenditure (US$) 1.33 0.00

TOTAL:- (US$ ) 1.33 0.00 b) Earnings in Foreign Currencies: 0.00 0.00 c) Auditors remuneration:

-Statutory Audit Fee 1.21 1.75 -Tax Audit Fee 1.00 0.00 -Other Matters 1.65 0.29

TOTAL 3.86 2.04

d) Managerial Remuneration: - Salary and allowances 61.74 54.56 - Contribution to PF and other funds 2.65 1.80 - Perquisites 3.36 7.34 - Sitting fee to Directors 0.00 0.00

TOTAL 67.75 63.70

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

52

2. In terms of “Himachal Pradesh Power Sector Reforms Transfer Scheme, 2010” notified by the State Govt. vide No. MPP-A(3)-1/2001-IV dated 10.06.2010 transmission lines having gross value of Rs.10263.37 Lakhs are re-vested with HPPTCL. The written down value of assets on above date amounting to Rs.6122.00 Lakhs only has been taken in books of account and amount shown as payable to HP State Govt./HPSEBL.

3. The Corporation has not made any provision of Income Tax on bank interest income and the same has been set off against interest paid during the year on loans taken for execution of various projects.

4. Based on information available with the Corporation, there is one supplier/service provider who is registered as Micro, Small and Medium undertakings under “The Micro, Small and

stMedium Enterprises Development Act 2006” as on 31 March, 2019and the Corporation has no outstanding liability towards Micro, Small and Medium Enterprises.

5. As defined by Accounting Standard Ind AS -36 “Impairment of Assets”there were no events stor change in circumstances as on 31 March 2019, which indicate any impairment in the

assets.6. In terms of Notification No. MPP-A(3) 1/2001-IV dated 10.06.2010 of Government of

Himachal Pradesh (Department of MPP & Power) the statutory function of State Transmission Utility (STU) shall be performed by Corporation along with evacuation of power by intra-state or inter-state transmission lines. In the current year transmission income and expenses pertaining to lines transferred from HPSEBL and own constructed transmission line and sub stations commissioned during the year were taken into account as per bills raised. The profit and Loss statement has been prepared by taking income of STOA @ 25% as per regulation of HPERC. Transmission income has been provided as per tariff approved by HPERC/ CERC and bills raised by HPPTCL. Direct Operating Expenses, Employee cost of PIU Phojal, Finance cost of Bhoktoo, Karian and Phojal, Other Administrative expenses of PIU Phojal have been charged to this Income during the year and all the remaining expenses have been capitalized to Expenditure Attributable to Construction Period.

7. In the opinion of the Board of Directors, the value of current assets, loan and advances etc. if realized in ordinary course of business, shall not be less than the amount at which the same are stated in the balance sheet.

8. The amounts in Financial Statements are presented in Indian Rupees and all figures have been rounded off to the nearest rupee lakh and decimals thereof except when otherwise stated.

9. Previous year figures have been reclassified/ regrouped/ rearranged wherever necessary to confirm to this year's classification.

10. Some of the balances shown under Current liabilities, loans and advances are subject to confirmation, reconciliation and consequential adjustment, if any.

11. Related party Disclosure:As required by Ind AS 24 Related party disclosure details of transactions with the related parties are:i) Related Parties-Key Management Personnel:Whole time Directors:

47

Name Designation Amount Rs. Er. R.K.Sharma Managing Director (w.e.f.4.1.2018 to till date) 2462750.00 Er. Keshav Singh Attri

Director (Project) w.e.f. 26.7.2014 to 26.3.2016 and Director (P&C) w.e.f. 14.3.2017 to till date

1935319.00

Er. Rajesh Singh Thakur

Director (Project) w.e.f. 26.4.16 to 30.01.2019. 2040314.00

5348

12. A sum of Rs.480.00 lakh was released by way of contribution for the establishment of IIIT Una as per Cabinet decision of Government of H.P. during 2014-15 which has been shown as other non-current asset as per Note No. 2.4 of Balance Sheet to be treated as PPP Contribution to IIIT Una.

13. As on 31.3.2019 a sum of Rs. 8377.42 Lakh (including interest) was standing as capital grant from MNRE of which Rs.5146.70 Lakh was received as grant in aid from MNRE and interest of Rs.234.30 Lakh was accrued during the year. The total amount of Grant & Interest Accrued there on of Rs.8377.42 Lakh has been shown under the head “Other Equity” as MNRE Capital grant. During the year a sum of Rs.3636.52 Lakh was incurred for expenditure on project and booked to capital work in progress.

14. The liability of KFW loan has been provided as per bank drawn statement of KFW on account of direct payment made to parties.

15. The title deeds of forest land diverted in favour of HPPTCL for setting up projects is in the name of HP Government.

Sd/- Sd/- Sd/- Sd/-

Sd/-For Manish K Gupta & Associates

Chartered AccountantsFRN 016533N

CAG Regd. No. NR1225

CA AnkurMahajan(Partner)

M No. 520473Place: ShimlaDate:- 28/09/2019

Kamlesh Sharma Manager Accounts

Anil Kumar SharmaDy. G.M(Finance)

Er. K.S.AttriDirector (P&C)

Er. R.K.SharmaManaging Director

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

52

2. In terms of “Himachal Pradesh Power Sector Reforms Transfer Scheme, 2010” notified by the State Govt. vide No. MPP-A(3)-1/2001-IV dated 10.06.2010 transmission lines having gross value of Rs.10263.37 Lakhs are re-vested with HPPTCL. The written down value of assets on above date amounting to Rs.6122.00 Lakhs only has been taken in books of account and amount shown as payable to HP State Govt./HPSEBL.

3. The Corporation has not made any provision of Income Tax on bank interest income and the same has been set off against interest paid during the year on loans taken for execution of various projects.

4. Based on information available with the Corporation, there is one supplier/service provider who is registered as Micro, Small and Medium undertakings under “The Micro, Small and

stMedium Enterprises Development Act 2006” as on 31 March, 2019and the Corporation has no outstanding liability towards Micro, Small and Medium Enterprises.

5. As defined by Accounting Standard Ind AS -36 “Impairment of Assets”there were no events stor change in circumstances as on 31 March 2019, which indicate any impairment in the

assets.6. In terms of Notification No. MPP-A(3) 1/2001-IV dated 10.06.2010 of Government of

Himachal Pradesh (Department of MPP & Power) the statutory function of State Transmission Utility (STU) shall be performed by Corporation along with evacuation of power by intra-state or inter-state transmission lines. In the current year transmission income and expenses pertaining to lines transferred from HPSEBL and own constructed transmission line and sub stations commissioned during the year were taken into account as per bills raised. The profit and Loss statement has been prepared by taking income of STOA @ 25% as per regulation of HPERC. Transmission income has been provided as per tariff approved by HPERC/ CERC and bills raised by HPPTCL. Direct Operating Expenses, Employee cost of PIU Phojal, Finance cost of Bhoktoo, Karian and Phojal, Other Administrative expenses of PIU Phojal have been charged to this Income during the year and all the remaining expenses have been capitalized to Expenditure Attributable to Construction Period.

7. In the opinion of the Board of Directors, the value of current assets, loan and advances etc. if realized in ordinary course of business, shall not be less than the amount at which the same are stated in the balance sheet.

8. The amounts in Financial Statements are presented in Indian Rupees and all figures have been rounded off to the nearest rupee lakh and decimals thereof except when otherwise stated.

9. Previous year figures have been reclassified/ regrouped/ rearranged wherever necessary to confirm to this year's classification.

10. Some of the balances shown under Current liabilities, loans and advances are subject to confirmation, reconciliation and consequential adjustment, if any.

11. Related party Disclosure:As required by Ind AS 24 Related party disclosure details of transactions with the related parties are:i) Related Parties-Key Management Personnel:Whole time Directors:

47

Name Designation Amount Rs. Er. R.K.Sharma Managing Director (w.e.f.4.1.2018 to till date) 2462750.00 Er. Keshav Singh Attri

Director (Project) w.e.f. 26.7.2014 to 26.3.2016 and Director (P&C) w.e.f. 14.3.2017 to till date

1935319.00

Er. Rajesh Singh Thakur

Director (Project) w.e.f. 26.4.16 to 30.01.2019. 2040314.00

5348

12. A sum of Rs.480.00 lakh was released by way of contribution for the establishment of IIIT Una as per Cabinet decision of Government of H.P. during 2014-15 which has been shown as other non-current asset as per Note No. 2.4 of Balance Sheet to be treated as PPP Contribution to IIIT Una.

13. As on 31.3.2019 a sum of Rs. 8377.42 Lakh (including interest) was standing as capital grant from MNRE of which Rs.5146.70 Lakh was received as grant in aid from MNRE and interest of Rs.234.30 Lakh was accrued during the year. The total amount of Grant & Interest Accrued there on of Rs.8377.42 Lakh has been shown under the head “Other Equity” as MNRE Capital grant. During the year a sum of Rs.3636.52 Lakh was incurred for expenditure on project and booked to capital work in progress.

14. The liability of KFW loan has been provided as per bank drawn statement of KFW on account of direct payment made to parties.

15. The title deeds of forest land diverted in favour of HPPTCL for setting up projects is in the name of HP Government.

Sd/- Sd/- Sd/- Sd/-

Sd/-For Manish K Gupta & Associates

Chartered AccountantsFRN 016533N

CAG Regd. No. NR1225

CA AnkurMahajan(Partner)

M No. 520473Place: ShimlaDate:- 28/09/2019

Kamlesh Sharma Manager Accounts

Anil Kumar SharmaDy. G.M(Finance)

Er. K.S.AttriDirector (P&C)

Er. R.K.SharmaManaging Director

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

54 49

M/S Manish K. Gupta & Associates239, The Mall, Solan-173212Contact No: 01792-224054

Mobile No. 99140-24276, 98784-38884Email:ca_mkg1999@yahoo.com

INDEPENDENT AUDITORS' REPORT ToThe Members of H.P Power Transmission Corporation Limited. Report on the Financial StatementsWe have audited the accompanying financial statements of M/S H.P Power Transmission Corporation Limited, which comprise the Balance Sheet as at 31 March 2019, the Statement of Profit and Loss(including Other Comprehensive Income), the Statement of Expenditure Attributable to Construction Period, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of significant accounting policies and other explanatory information.

Qualified Opinion In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matters prescribed in the Basis of Qualified Opinion Paragraphs, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state

stof affairs of the company as at 31 March 2019 and its loss,Total Comprehensive Income, Expenditure Attributable to Construction Period and the Changes in Equity and its Cash Flowsfor the year ended on that date.

Basis of Qualified Opinion (i) Accounting for taxes on income: In reference to Note No. III(15) on Taxes on Income, we

wish to state that the company is not doing accounting for taxes on income as per Ind AS 12 (Income Taxes). The company has started its commercial operations of transmission on certain lines & sub stations and depreciation rates applied by the company are not in line with depreciation rates required to arrive at taxable income. Despite this, the company has not recognized the tax effect of timing differences arising on account of difference in taxable income and accounting income. Further company is also not recognizing Deferred Tax Assets or Deferred Tax Liability. However, the consequential impact of these matters is not ascertainable on the financial statement of the company.

(ii) Expenses on Income Tax: As detailed in Note No. III(15) and IV(3) to the Financial Statements, Company has not made any provision for Income Tax on “Bank Interest Income”. The matter of taxability of interest income earned during the construction period is under dispute with the Income Tax Department. In cases for the Financial Years 2009-10, 2010-11, 2011-12 and 2012-13, company has lost the cases upto Income Tax Tribunal level and currently these cases are under appeal with Hon'ble Himachal Pradesh High Court. Income Tax Department has raised the demand on same issue in assessments for the Financial Years 2013-14, 2014-15 & 2015-16 also. Company has gone in appeal before ITAT Chandigarh for FY 2013-14 & FY 2014-15 and before CIT(A) Solan for the FY 2015-16.

Despite unfavourable orders (refer to Note No. III(15), neither the company has made any provision for the taxes paid nor it has written off taxes paid. This is in contravention of Ind AS

5550

12 (Income Taxes). Accordingly expenses to the extent of Rs. 2526.73 Lakhs (up to FY 2015-16) are understated. Due to this, Current Tax Assets have also been overstated to the extent of Rs. 1901.58 Lakhs.

(iii) We wish to state that the company is not following the policy of Revenue Recognition on pure accrual basis from Transmission, O&M and STOA Charges as laid down in Ind AS 18 (Revenue Recognition). Company is recognizing the revenue on account of STOA on receipt basis on the basis of amount credited to company's bank account. Company has not established any internal mechanism and system within the company to ascertain the basis on which this income has been credited in the books of accounts. There is no way to check the excess or short receipt, if any on account of Transmission Income from STOA. This is contrary to the requirement of section 128 of the Companies Act 2013 which stipulates that “books shall be kept on accrual basis and according to the double entry system of accounting.

(iv) Company does not follow the system of obtaining confirmation of balances in respect of claims/amount recoverable/payable (including HPSEBL & State Govt. Loan (ADB), security deposits, advance for capital works etc. Due to non-availability of confirmations of aforesaid balances, we are unable to quantify the impact of the adjustment, if any, arising from reconciliation and settlement of account balances in the financial statements.

(v) Non Compliance of Ind AS: The company has not complied with the following mandatory IND AS issued by the Institute of Chartered Accountants of India:

(a) Ind AS 8 (Accounting Policies, Change in Accounting Estimates & Errors) - Non disclosure of any policy on write off & recovery of shortage from contractors and suppliers- Non disclosure of any policy on write off & recovery of shortage from employees.- Accounting treatment of capital and revenue items (b) Ind AS 19 (Employee Benefits)- The company has not done the actuarial valuation of leave encashment, gratuity and other

benefits payable to the employees. (c) Ind AS 33 (Earning per Share)- The company has not done correct calculation of Earning per Share as laid down in the Ind AS. Financial impact of non-compliance of the above mentioned Ind (AS) cannot be ascertained. (vi) The DSCR as per financial covenants is not achievable as many projects are still under execution

and necessary ARR's are yet to be filed and approved by HPERC.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the Financial Statements under the provisions of the Act & Rules made there under and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters Key Audit Matters are those matters that in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion there on, and

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

54 49

M/S Manish K. Gupta & Associates239, The Mall, Solan-173212Contact No: 01792-224054

Mobile No. 99140-24276, 98784-38884Email:ca_mkg1999@yahoo.com

INDEPENDENT AUDITORS' REPORT ToThe Members of H.P Power Transmission Corporation Limited. Report on the Financial StatementsWe have audited the accompanying financial statements of M/S H.P Power Transmission Corporation Limited, which comprise the Balance Sheet as at 31 March 2019, the Statement of Profit and Loss(including Other Comprehensive Income), the Statement of Expenditure Attributable to Construction Period, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of significant accounting policies and other explanatory information.

Qualified Opinion In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matters prescribed in the Basis of Qualified Opinion Paragraphs, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state

stof affairs of the company as at 31 March 2019 and its loss,Total Comprehensive Income, Expenditure Attributable to Construction Period and the Changes in Equity and its Cash Flowsfor the year ended on that date.

Basis of Qualified Opinion (i) Accounting for taxes on income: In reference to Note No. III(15) on Taxes on Income, we

wish to state that the company is not doing accounting for taxes on income as per Ind AS 12 (Income Taxes). The company has started its commercial operations of transmission on certain lines & sub stations and depreciation rates applied by the company are not in line with depreciation rates required to arrive at taxable income. Despite this, the company has not recognized the tax effect of timing differences arising on account of difference in taxable income and accounting income. Further company is also not recognizing Deferred Tax Assets or Deferred Tax Liability. However, the consequential impact of these matters is not ascertainable on the financial statement of the company.

(ii) Expenses on Income Tax: As detailed in Note No. III(15) and IV(3) to the Financial Statements, Company has not made any provision for Income Tax on “Bank Interest Income”. The matter of taxability of interest income earned during the construction period is under dispute with the Income Tax Department. In cases for the Financial Years 2009-10, 2010-11, 2011-12 and 2012-13, company has lost the cases upto Income Tax Tribunal level and currently these cases are under appeal with Hon'ble Himachal Pradesh High Court. Income Tax Department has raised the demand on same issue in assessments for the Financial Years 2013-14, 2014-15 & 2015-16 also. Company has gone in appeal before ITAT Chandigarh for FY 2013-14 & FY 2014-15 and before CIT(A) Solan for the FY 2015-16.

Despite unfavourable orders (refer to Note No. III(15), neither the company has made any provision for the taxes paid nor it has written off taxes paid. This is in contravention of Ind AS

5550

12 (Income Taxes). Accordingly expenses to the extent of Rs. 2526.73 Lakhs (up to FY 2015-16) are understated. Due to this, Current Tax Assets have also been overstated to the extent of Rs. 1901.58 Lakhs.

(iii) We wish to state that the company is not following the policy of Revenue Recognition on pure accrual basis from Transmission, O&M and STOA Charges as laid down in Ind AS 18 (Revenue Recognition). Company is recognizing the revenue on account of STOA on receipt basis on the basis of amount credited to company's bank account. Company has not established any internal mechanism and system within the company to ascertain the basis on which this income has been credited in the books of accounts. There is no way to check the excess or short receipt, if any on account of Transmission Income from STOA. This is contrary to the requirement of section 128 of the Companies Act 2013 which stipulates that “books shall be kept on accrual basis and according to the double entry system of accounting.

(iv) Company does not follow the system of obtaining confirmation of balances in respect of claims/amount recoverable/payable (including HPSEBL & State Govt. Loan (ADB), security deposits, advance for capital works etc. Due to non-availability of confirmations of aforesaid balances, we are unable to quantify the impact of the adjustment, if any, arising from reconciliation and settlement of account balances in the financial statements.

(v) Non Compliance of Ind AS: The company has not complied with the following mandatory IND AS issued by the Institute of Chartered Accountants of India:

(a) Ind AS 8 (Accounting Policies, Change in Accounting Estimates & Errors) - Non disclosure of any policy on write off & recovery of shortage from contractors and suppliers- Non disclosure of any policy on write off & recovery of shortage from employees.- Accounting treatment of capital and revenue items (b) Ind AS 19 (Employee Benefits)- The company has not done the actuarial valuation of leave encashment, gratuity and other

benefits payable to the employees. (c) Ind AS 33 (Earning per Share)- The company has not done correct calculation of Earning per Share as laid down in the Ind AS. Financial impact of non-compliance of the above mentioned Ind (AS) cannot be ascertained. (vi) The DSCR as per financial covenants is not achievable as many projects are still under execution

and necessary ARR's are yet to be filed and approved by HPERC.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the Financial Statements under the provisions of the Act & Rules made there under and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters Key Audit Matters are those matters that in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion there on, and

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we do not provide a separate opinion on these matters. Reporting of Key Audit Matters as per SA 701, Key Audit Matters are not applicable to the company as it is an Unlisted Company.

Information Other Than the Financial Statements & Auditor's Report There on The Company's Board of Directors is responsible for preparation of other information. The other information comprises the information included in the Board's Report including Annexures to Board's Report, Business Responsibility Report, but does not include the financial statements and our auditor's report there on. Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion there on.In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If based on the work we have performed, we conclude that there is material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard. Management's Responsibility for the Financial StatementsThe Company's Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial and presentationstatements that give a true and fair view of the financial position and financial performance of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. The Board of Directors is also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.As part of an audit in accordance with SAs, we exercise professional judgement and maintain

5752

professional scepticism throughout the audit. We also:· Identify and assess the risks of material misstatement of the financial statements, whether due

to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

· Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

· Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so should reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirementsAs required by the Companies (Auditor's Report) Order, 2016 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure I, a statement on the matters Specified in paragraphs 3 and 4 of the Order, to the extent applicableWe are enclosing our report in terms of Section 143(5) of the Act, on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and

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we do not provide a separate opinion on these matters. Reporting of Key Audit Matters as per SA 701, Key Audit Matters are not applicable to the company as it is an Unlisted Company.

Information Other Than the Financial Statements & Auditor's Report There on The Company's Board of Directors is responsible for preparation of other information. The other information comprises the information included in the Board's Report including Annexures to Board's Report, Business Responsibility Report, but does not include the financial statements and our auditor's report there on. Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion there on.In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If based on the work we have performed, we conclude that there is material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard. Management's Responsibility for the Financial StatementsThe Company's Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial and presentationstatements that give a true and fair view of the financial position and financial performance of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. The Board of Directors is also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.As part of an audit in accordance with SAs, we exercise professional judgement and maintain

5752

professional scepticism throughout the audit. We also:· Identify and assess the risks of material misstatement of the financial statements, whether due

to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

· Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

· Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so should reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirementsAs required by the Companies (Auditor's Report) Order, 2016 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure I, a statement on the matters Specified in paragraphs 3 and 4 of the Order, to the extent applicableWe are enclosing our report in terms of Section 143(5) of the Act, on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and

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explanations given to us, in the Annexure II on the directions issued by Comptroller and Auditor General of India.

As required by Section 143(3) of the Act, we report that:a) We have sought and obtained all the information and explanations which to the best of our

knowledge and belief were necessary for the purposes of our audit.b) In our opinion proper books of account as required by law have been kept by the Company so

far as it appears from our examination of those books.c) the Balance Sheet, the Statement of Profit and Loss, Statement of Expenditure Attributable to

Construction Period, Statement of Changes in Equity and the statement of cash flow dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid financial statements, except for the effects of the matter described in the Basis of Qualified Opinion Paragraph, comply with the Indian Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

the) Being a Government Company pursuant to the Notification No. GSR 463(E) dated 5 June

2015 issued by Ministry of Corporate Affairs, Government of India, provisions of sub section (2) of Section 164 of the Companies Act 2013, are not applicable to the company.

f) with respect to adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such control, refer to our separate report in “Annexure III”; and

g) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:

i. the company have pending litigations but it would not impact its financial position. ii. The Company did not have any long-term contracts including derivatives contracts for

which there were any material foreseeable losses.iii. there were no amounts which required to be transferred by the Company to the Investor

Education and Protection Fund. Sd/-

For Manish K Gupta & AssociatesChartered Accountants

FRN 016533NCAG Regd. No. NR1225

CA Ankur Mahajan(Partner)

M No. 520473

Place: Shimla Date:- 28/09/2019

54

Annexure I” to the Independent Auditors' Report

[Referred to in paragraph 1 under the heading 'Report on Other Legal & Regulatory Requirement' of our report of even date to the members of H.P Power Transmission Corporation Limited on the financial statements of the company for the year ended March 31,2019]1) (a) The Company has generally maintained proper records showing full particulars, including

quantitative details and situation of fixed assets; (b) The Fixed Assets have been physically verified by the management in a phased manner,

designed to cover all the items over a period of one year, which in our opinion, is reasonable having regard to the size of the company and nature of its business. However physical verification of capital work in progress i.e projects under implementation is monitored only from measurement book (MB) of the project work. According to the information and explanations given to us, no material discrepancies between the books records and the physical fixed assets have been noticed.

(c) The title deeds of immoveable properties were not shown to us except those which were acquired through acquisition order of Govt. However, the assets i.e transmission lines vested in company through Govt. Orders have not been updated in the revenue records.

2) Maximum projects of the company are in construction stage. So the company is not holding any inventory as such. Therefore matters specified in this clause and its sub clauses do not apply to the company

3) According to the information and explanations given to us, the company has not granted any unsecured loans to companies, firms or other parties covered in the the Register maintained under section 189 of the Companies Act, 2013; therefore paragraph 3(iii) of the order is not applicable.

4) The company has not granted any loans or given any guarantee and security covered under section 185 and 186 of the Companies Act 2013. Company has also not made any investment in the subsidiary and Joint Venture Companies covered under section 185 and 186 of the Companies Act 2013.

5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.

6) We have been informed by the management that maintenance of cost records has not been specified by the Central Government under section 148(1) of the Companies Act 2013 for the business activities carried out by the company. Thus reporting under clause 3(vi) of the order is not applicable to the company.

7) In respect of statutory dues:(a) According to the records of the company and information and explanations given to us, the

Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance (ESI), Income Tax, Sales Tax, Goods & Service Tax, Value Added Tax, Tax collected at source, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

(b) According to the information and explanations given to us, there were no undisputed amounts payable in respect of Provident Fund, Employees State Insurance (ESI), Income Tax, Sales Tax, Goods & Service Tax, Value Added Tax, Tax collected at source, Custom Duty, Excise Duty, Cess and other material statutory dues in arrears/were outstanding as at 31 March,

58 59

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explanations given to us, in the Annexure II on the directions issued by Comptroller and Auditor General of India.

As required by Section 143(3) of the Act, we report that:a) We have sought and obtained all the information and explanations which to the best of our

knowledge and belief were necessary for the purposes of our audit.b) In our opinion proper books of account as required by law have been kept by the Company so

far as it appears from our examination of those books.c) the Balance Sheet, the Statement of Profit and Loss, Statement of Expenditure Attributable to

Construction Period, Statement of Changes in Equity and the statement of cash flow dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid financial statements, except for the effects of the matter described in the Basis of Qualified Opinion Paragraph, comply with the Indian Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

the) Being a Government Company pursuant to the Notification No. GSR 463(E) dated 5 June

2015 issued by Ministry of Corporate Affairs, Government of India, provisions of sub section (2) of Section 164 of the Companies Act 2013, are not applicable to the company.

f) with respect to adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such control, refer to our separate report in “Annexure III”; and

g) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:

i. the company have pending litigations but it would not impact its financial position. ii. The Company did not have any long-term contracts including derivatives contracts for

which there were any material foreseeable losses.iii. there were no amounts which required to be transferred by the Company to the Investor

Education and Protection Fund. Sd/-

For Manish K Gupta & AssociatesChartered Accountants

FRN 016533NCAG Regd. No. NR1225

CA Ankur Mahajan(Partner)

M No. 520473

Place: Shimla Date:- 28/09/2019

54

Annexure I” to the Independent Auditors' Report

[Referred to in paragraph 1 under the heading 'Report on Other Legal & Regulatory Requirement' of our report of even date to the members of H.P Power Transmission Corporation Limited on the financial statements of the company for the year ended March 31,2019]1) (a) The Company has generally maintained proper records showing full particulars, including

quantitative details and situation of fixed assets; (b) The Fixed Assets have been physically verified by the management in a phased manner,

designed to cover all the items over a period of one year, which in our opinion, is reasonable having regard to the size of the company and nature of its business. However physical verification of capital work in progress i.e projects under implementation is monitored only from measurement book (MB) of the project work. According to the information and explanations given to us, no material discrepancies between the books records and the physical fixed assets have been noticed.

(c) The title deeds of immoveable properties were not shown to us except those which were acquired through acquisition order of Govt. However, the assets i.e transmission lines vested in company through Govt. Orders have not been updated in the revenue records.

2) Maximum projects of the company are in construction stage. So the company is not holding any inventory as such. Therefore matters specified in this clause and its sub clauses do not apply to the company

3) According to the information and explanations given to us, the company has not granted any unsecured loans to companies, firms or other parties covered in the the Register maintained under section 189 of the Companies Act, 2013; therefore paragraph 3(iii) of the order is not applicable.

4) The company has not granted any loans or given any guarantee and security covered under section 185 and 186 of the Companies Act 2013. Company has also not made any investment in the subsidiary and Joint Venture Companies covered under section 185 and 186 of the Companies Act 2013.

5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.

6) We have been informed by the management that maintenance of cost records has not been specified by the Central Government under section 148(1) of the Companies Act 2013 for the business activities carried out by the company. Thus reporting under clause 3(vi) of the order is not applicable to the company.

7) In respect of statutory dues:(a) According to the records of the company and information and explanations given to us, the

Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance (ESI), Income Tax, Sales Tax, Goods & Service Tax, Value Added Tax, Tax collected at source, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

(b) According to the information and explanations given to us, there were no undisputed amounts payable in respect of Provident Fund, Employees State Insurance (ESI), Income Tax, Sales Tax, Goods & Service Tax, Value Added Tax, Tax collected at source, Custom Duty, Excise Duty, Cess and other material statutory dues in arrears/were outstanding as at 31 March,

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55

2019 for a period of more than six months from the date they became payable. st

(c) Detail of dues of Income Tax which have not been deposited at 31 March 2019 on account of dispute are given below:

FY Demand Amount

AO-ACIT

Appeal Before CIT

Appeal Before ITAT

Appeal Before High Court

Remarks Exp. Booking Status

2009-10 52.66 Demand Dismissed Dismissed Pending Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

2010-11

156.12

Demand

Dismissed

Dismissed

Pending

Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

2011-12

341.17

Demand

Dismissed

Dismissed

Pending

Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

2012-13

476.04

Demand

Dismissed

Dismissed

Pending

Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

2013-14

688.69

Demand

Dismissed

Pending

---------------

Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

2014-15

441.79

Demand

Dismissed

Pending

---------------

Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

2015-16

370.26

Demand Pending

---------------

---------------

Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

Total *2526.73

(Amount in Lakhs)

*Against this total demand of Rs. 2526.73 Lakhs, sum of Rs. 1901.58 Lakhs has already been deposited.

56

8) In our opinion and according to the information and explanations given to us, the Company has defaulted in repayment of loan to Government of Himachal Pradesh on account of ADB Tranch I Loan which became due for repayment in January 2018. Further as informed to us by the management, request has been submitted to the Government of Himachal Pradesh for extension of moratorium period which is under consideration till date.

9) The company has not raised any money by way of initial public offer or further public offer during the year. Further according to the information and explanations given to us, the money raised by the by way of term loans have been applied for the purpose for which they were obtained. Proceeds of loans un-utilized have been parked in the bank/FDR accounts for the time being.

10) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.

th11) As per notification no. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs Government of India, Section 197 is not applicable to the Government Companies. Accordingly, provisions of clause 3(xi) are not applicable to the company.

12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of the Order are not applicable to the Company.

13) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.

14) Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.

15) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.

16) Company is not an investment company. So it is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934.

Sd/-For Manish K Gupta & Associates

Chartered AccountantsFRN 016533N

CAG Regd. No. NR1225

CA Ankur Mahajan(Partner)

M No. 520473Place: Shimla Date:- 28/09/2019

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55

2019 for a period of more than six months from the date they became payable. st

(c) Detail of dues of Income Tax which have not been deposited at 31 March 2019 on account of dispute are given below:

FY Demand Amount

AO-ACIT

Appeal Before CIT

Appeal Before ITAT

Appeal Before High Court

Remarks Exp. Booking Status

2009-10 52.66 Demand Dismissed Dismissed Pending Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

2010-11

156.12

Demand

Dismissed

Dismissed

Pending

Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

2011-12

341.17

Demand

Dismissed

Dismissed

Pending

Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

2012-13

476.04

Demand

Dismissed

Dismissed

Pending

Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

2013-14

688.69

Demand

Dismissed

Pending

---------------

Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

2014-15

441.79

Demand

Dismissed

Pending

---------------

Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

2015-16

370.26

Demand Pending

---------------

---------------

Demand is

deposited/

adjusted from

advance tax

paid.

Expenditure

not charged to

P&L till date.

Total *2526.73

(Amount in Lakhs)

*Against this total demand of Rs. 2526.73 Lakhs, sum of Rs. 1901.58 Lakhs has already been deposited.

56

8) In our opinion and according to the information and explanations given to us, the Company has defaulted in repayment of loan to Government of Himachal Pradesh on account of ADB Tranch I Loan which became due for repayment in January 2018. Further as informed to us by the management, request has been submitted to the Government of Himachal Pradesh for extension of moratorium period which is under consideration till date.

9) The company has not raised any money by way of initial public offer or further public offer during the year. Further according to the information and explanations given to us, the money raised by the by way of term loans have been applied for the purpose for which they were obtained. Proceeds of loans un-utilized have been parked in the bank/FDR accounts for the time being.

10) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.

th11) As per notification no. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs Government of India, Section 197 is not applicable to the Government Companies. Accordingly, provisions of clause 3(xi) are not applicable to the company.

12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of the Order are not applicable to the Company.

13) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.

14) Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.

15) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.

16) Company is not an investment company. So it is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934.

Sd/-For Manish K Gupta & Associates

Chartered AccountantsFRN 016533N

CAG Regd. No. NR1225

CA Ankur Mahajan(Partner)

M No. 520473Place: Shimla Date:- 28/09/2019

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57

“Annexure II to the Auditor's Report”

[Referred to in paragraph 19(b) our report of even date to the members of H.P Power Transmission Corporation Limited on the accounts for the year ended 31st March 2019]

Sr. No

Directions

Remarks

1.

Whether the company has system in place to process all the accounting transaction through IT System? If yes, the implications of processing of accounting transaction outside IT System on the integrity of the accounts along with the financial implication, if any, may be stated.

Yes. SAP has been implemented in the company from FY 2018-19.

2.

Whether there is any restructuring of any existing loan or cases of waiver/write off of debts/loans/interest etc. made by a lender to the company due to the company’s inability to repay the loan? If yes, the financial impact may be stated.

As informed to us by the management, there is no such case

3.

Whether funds received/receivable for specific schemes from Central / State agencies were properly accounted for utilized as per its term and condition? List the cases of deviation.

Yes, no deviation observed.

4.

Whether land acquisition is involved in setting up new projects report whether settlement of due done expeditiously and in a transparent manner?

Yes

5.

How much cost has been incurred on abandoned projects and of this how much cost has been written off?

NIL

6.

Is the system of evacuation of power commensurate with

power available for transmission with the generation company may be commented?

Yes

7. How much transmission loss in excess of prescribed norms has been incurred during the year and whether the same been properly accounted for in the books of accounts?

NIL

For Manish K Gupta & AssociatesChartered Accountants

FRN 016533NCAG Regd. No. NR1225

CA Ankur Mahajan(Partner)

M No. 520473

Place: Shimla Date:- 28/09/2019

Sd/-

58

“Annexure III” to the Independent Auditor's Report of even date on the Financial Statements of H P Transmission Corporation Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)We have audited the internal financial controls over financial reporting of H.P Power Transmission Corporation Limited as of March 31, 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.Management's Responsibility for Internal Financial ControlsThe Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors' ResponsibilityOur responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting

Meaning of Internal Financial Controls over Financial ReportingA company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the

62 63

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57

“Annexure II to the Auditor's Report”

[Referred to in paragraph 19(b) our report of even date to the members of H.P Power Transmission Corporation Limited on the accounts for the year ended 31st March 2019]

Sr. No

Directions

Remarks

1.

Whether the company has system in place to process all the accounting transaction through IT System? If yes, the implications of processing of accounting transaction outside IT System on the integrity of the accounts along with the financial implication, if any, may be stated.

Yes. SAP has been implemented in the company from FY 2018-19.

2.

Whether there is any restructuring of any existing loan or cases of waiver/write off of debts/loans/interest etc. made by a lender to the company due to the company’s inability to repay the loan? If yes, the financial impact may be stated.

As informed to us by the management, there is no such case

3.

Whether funds received/receivable for specific schemes from Central / State agencies were properly accounted for utilized as per its term and condition? List the cases of deviation.

Yes, no deviation observed.

4.

Whether land acquisition is involved in setting up new projects report whether settlement of due done expeditiously and in a transparent manner?

Yes

5.

How much cost has been incurred on abandoned projects and of this how much cost has been written off?

NIL

6.

Is the system of evacuation of power commensurate with

power available for transmission with the generation company may be commented?

Yes

7. How much transmission loss in excess of prescribed norms has been incurred during the year and whether the same been properly accounted for in the books of accounts?

NIL

For Manish K Gupta & AssociatesChartered Accountants

FRN 016533NCAG Regd. No. NR1225

CA Ankur Mahajan(Partner)

M No. 520473

Place: Shimla Date:- 28/09/2019

Sd/-

58

“Annexure III” to the Independent Auditor's Report of even date on the Financial Statements of H P Transmission Corporation Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)We have audited the internal financial controls over financial reporting of H.P Power Transmission Corporation Limited as of March 31, 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.Management's Responsibility for Internal Financial ControlsThe Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors' ResponsibilityOur responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting

Meaning of Internal Financial Controls over Financial ReportingA company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the

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59

maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial ReportingBecause of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

OpinionIn our opinion, the Company has, in all material respects, is having an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2019,based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. Sd/-

For Manish K Gupta & AssociatesChartered Accountants

FRN 016533NCAG Regd. No. NR1225

CA Ankur Mahajan(Partner)

M No. 520473

Place: Shimla Date:- 28/09/2019

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

Sd/- Dy. General Manager (Fin.)

HPPTCL, Shimla.

60

REPLY TO THE REPORT OF STATUTORY AUDITORS FOR THE FINANCIAL YEAR ENDING 31.3.19.Observations under Basis of Qualified opinion:

S.No. Nature of Auditor’s Remark Reply 1 Accounting for taxes on

Income: Ind AS 12 The company has incurred losses to the tune of Rs 40.92 Cr. during F.Y. 2018 -19 . The consequential impact of the differences is duly taken at time of Tax Audit and ITR filing. Further in Notes to Accounts Point No. 15 (a) clearly specifies that there is no deferred tax liability for the period.

2 Expenses on Income Tax: Provision for Income Tax on Bank Interest

The matter being subjuidice, necessary provisions shall be made as per outcome of Hon’ble High Court decision as the cases are pending at High Court level. However, the amount has been duly disclosed as Contingent Liability in notes to accounts for F.Y. 201 8-19.

3 O&M and STOA charges as laid down in Ind AS 18 (Revenue Recognition)

The Company is recognising revenue on accrual basis by booking the Income of STOA & STU and making a corresponding provision of income receivable as on 31.3.2019.

4 Non-confirmation of Balance Efforts are being made for confirmation of balances in respect of claims/ amount recoverable/ payable to HPSEBL/ State Govt./ ADB Loan etc.

5 Non-Compliance of Ind AS. (a) Ind as 8 (Accounting

policies, change in Accounting Estimates& Errors)

(a) Noted for Compliance in future.

(b) Ind AS 19 (Employee Benefits)

(b) Necessary disclosure already given under Note No. III (12).

(c) Ind AS 33 (Earning per

Share) (c) Necessary disclosure already been given under Note

No. III (13).

6 The DSCR as per financial convenants is not achievable

The Company has filed ARRs before HPERC/CERC for claiming tariff on its completed assets during FY 2018 -19 a s most of the Projects are still under construction stage and are not generating any revenue at pres ent. As and when the projects will be completed and will start earning profit the ratio shall be achieved accordingly.

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59

maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial ReportingBecause of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

OpinionIn our opinion, the Company has, in all material respects, is having an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2019,based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. Sd/-

For Manish K Gupta & AssociatesChartered Accountants

FRN 016533NCAG Regd. No. NR1225

CA Ankur Mahajan(Partner)

M No. 520473

Place: Shimla Date:- 28/09/2019

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

Sd/- Dy. General Manager (Fin.)

HPPTCL, Shimla.

60

REPLY TO THE REPORT OF STATUTORY AUDITORS FOR THE FINANCIAL YEAR ENDING 31.3.19.Observations under Basis of Qualified opinion:

S.No. Nature of Auditor’s Remark Reply 1 Accounting for taxes on

Income: Ind AS 12 The company has incurred losses to the tune of Rs 40.92 Cr. during F.Y. 2018 -19 . The consequential impact of the differences is duly taken at time of Tax Audit and ITR filing. Further in Notes to Accounts Point No. 15 (a) clearly specifies that there is no deferred tax liability for the period.

2 Expenses on Income Tax: Provision for Income Tax on Bank Interest

The matter being subjuidice, necessary provisions shall be made as per outcome of Hon’ble High Court decision as the cases are pending at High Court level. However, the amount has been duly disclosed as Contingent Liability in notes to accounts for F.Y. 201 8-19.

3 O&M and STOA charges as laid down in Ind AS 18 (Revenue Recognition)

The Company is recognising revenue on accrual basis by booking the Income of STOA & STU and making a corresponding provision of income receivable as on 31.3.2019.

4 Non-confirmation of Balance Efforts are being made for confirmation of balances in respect of claims/ amount recoverable/ payable to HPSEBL/ State Govt./ ADB Loan etc.

5 Non-Compliance of Ind AS. (a) Ind as 8 (Accounting

policies, change in Accounting Estimates& Errors)

(a) Noted for Compliance in future.

(b) Ind AS 19 (Employee Benefits)

(b) Necessary disclosure already given under Note No. III (12).

(c) Ind AS 33 (Earning per

Share) (c) Necessary disclosure already been given under Note

No. III (13).

6 The DSCR as per financial convenants is not achievable

The Company has filed ARRs before HPERC/CERC for claiming tariff on its completed assets during FY 2018 -19 a s most of the Projects are still under construction stage and are not generating any revenue at pres ent. As and when the projects will be completed and will start earning profit the ratio shall be achieved accordingly.

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61

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

REPLY TO THE “ANNEXURE 1” TO THE AUDITORS REPORT (Referred to in paragraph 1 (a) under 'Report on Other Legal and Regulatory Requirements' of our Report of even date to the members of HP Power Transmission Corporation Limited on the financial statements

stof the company for the year ended 31 . March,2019.

S.No. Auditor’s Remark Reply

1. Point No . 1 (c) w.r.t. Title Deeds

The title deeds of immoveable properties are available at concerned PIU’s where the property stands in the name of HPPTCL. Also, efforts are being made for updating revenue records of transmission lines vested as per Govt. Orders.

2. Point No. 8 w.r.t repayment of Loan to Government of H.P.

The State Govt. has been requested for granting extension moratorium period in respect of ADB Tranche I loan as most of the projects are still under execution stage.

Sd/- Dy. General Manager (Fin.)

HPPTCL, Shimla.

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61

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

REPLY TO THE “ANNEXURE 1” TO THE AUDITORS REPORT (Referred to in paragraph 1 (a) under 'Report on Other Legal and Regulatory Requirements' of our Report of even date to the members of HP Power Transmission Corporation Limited on the financial statements

stof the company for the year ended 31 . March,2019.

S.No. Auditor’s Remark Reply

1. Point No . 1 (c) w.r.t. Title Deeds

The title deeds of immoveable properties are available at concerned PIU’s where the property stands in the name of HPPTCL. Also, efforts are being made for updating revenue records of transmission lines vested as per Govt. Orders.

2. Point No. 8 w.r.t repayment of Loan to Government of H.P.

The State Govt. has been requested for granting extension moratorium period in respect of ADB Tranche I loan as most of the projects are still under execution stage.

Sd/- Dy. General Manager (Fin.)

HPPTCL, Shimla.

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ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

68 60 69

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

68 60 69

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

70

1. Balance Sheet Equity and liabilities Current Liabilities (Note No.2.18-

Rs.10535.45 Lakh.)(i) Above does not include an amount of Rs.2.78 crore surcharge payable to Power Grid Corporation of India Ltd. (PGCIL) on account of delayed payment of Rs. 20.77crore for bay charges of 400 KV Sub-Station at Banala (Kullu). Thus “Current Liabilities” and “Loss'' are understated by Rs.2.78 and “Other Equity” overstated to the same extent.

Reply

In this context, it is submitted that the actual amount of surcharge liability on the bills raised by PGCIL can be ascertained at the time of actual payment of billed amount. Since, HPPTCL has not yet paid the bills to PGCIL the surcharge liability cannot be ascertained. The liability has been created on the basis of bills raised by PGCIL. As such, the surcharge liability has not been provided in books of account, which shall be provided at the time of actual payment. Moreover, HPPTCL has approached APTEL for allowing stay on the assessment of PGCIL.

(ii) Above does not include an amount of Rs. 1.78 crore payable on account of price variation for construction of 400/200/66 KV GIS (Gas Insulated Substation) Wangtoo to L&T Construction Power Transmission and Distribution Ltd. for the period of July 2018 to March 2019. Thus “Current Liabilities” as well as “Capital Work in Progress” are understated by Rs.1.78 crore.

In this context, it is submitted that the price variation bill amounting to Rs.1,77,54,512/- was presented by firm i.e. M/s L&T Ltd. for payment on dated 30.06.2019 and payment in this account was released on 19.09.2019 after scrutiny at various level of HPPTCL. The bill was not kept under liability head for the FY 2018-19 with the reason that the draft accounts were already finalized before 30.06.2019 and approved by the BOD of HPPTCL on dated 06.09.2019.

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

REPLIES TO COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER

SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION LIMITED FOR THE YEAR

ENDED 31 MARCH 2019.

2. Assets Non Current AssetsCapital Work in Progress (Note 2.2- Rs 14278.77 lakh.)Above includes an amount of Rs.107.44 crore on account of 220 KV D/C Hatkoti–Gumma Transmission Line which has been completed on 16.03.2019.Thus, “Capital Work in Progress” is overstated by Rs. 107.44 crore and “Fixed Assets” are understated by Rs. 107.21 crore. Further “Depreciation” and “Loss” are understated by Rs. 23.31 Lakh while “Other Equity” is overstated to the same extent.

In this context, it is submitted that as substation and its associated line are an integral part of one project and since the work of 220/400 kV, 1x31.5.MVA substation at Pragtinagar is still in progress as on 31.3.2019 and was not ready for use, as such, 220 kV Hatkoti Gumma Transmission line has not been capitalized.

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ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

70

1. Balance Sheet Equity and liabilities Current Liabilities (Note No.2.18-

Rs.10535.45 Lakh.)(i) Above does not include an amount of Rs.2.78 crore surcharge payable to Power Grid Corporation of India Ltd. (PGCIL) on account of delayed payment of Rs. 20.77crore for bay charges of 400 KV Sub-Station at Banala (Kullu). Thus “Current Liabilities” and “Loss'' are understated by Rs.2.78 and “Other Equity” overstated to the same extent.

Reply

In this context, it is submitted that the actual amount of surcharge liability on the bills raised by PGCIL can be ascertained at the time of actual payment of billed amount. Since, HPPTCL has not yet paid the bills to PGCIL the surcharge liability cannot be ascertained. The liability has been created on the basis of bills raised by PGCIL. As such, the surcharge liability has not been provided in books of account, which shall be provided at the time of actual payment. Moreover, HPPTCL has approached APTEL for allowing stay on the assessment of PGCIL.

(ii) Above does not include an amount of Rs. 1.78 crore payable on account of price variation for construction of 400/200/66 KV GIS (Gas Insulated Substation) Wangtoo to L&T Construction Power Transmission and Distribution Ltd. for the period of July 2018 to March 2019. Thus “Current Liabilities” as well as “Capital Work in Progress” are understated by Rs.1.78 crore.

In this context, it is submitted that the price variation bill amounting to Rs.1,77,54,512/- was presented by firm i.e. M/s L&T Ltd. for payment on dated 30.06.2019 and payment in this account was released on 19.09.2019 after scrutiny at various level of HPPTCL. The bill was not kept under liability head for the FY 2018-19 with the reason that the draft accounts were already finalized before 30.06.2019 and approved by the BOD of HPPTCL on dated 06.09.2019.

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION (A State Government Undertaking)

Himfed Building, Near Old MLA Quarters, TutiKandi,(Panjri) Shimla-171005 (H.P.)

REPLIES TO COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER

SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF

HIMACHAL PRADESH POWER TRANSMISSION CORPORATION LIMITED FOR THE YEAR

ENDED 31 MARCH 2019.

2. Assets Non Current AssetsCapital Work in Progress (Note 2.2- Rs 14278.77 lakh.)Above includes an amount of Rs.107.44 crore on account of 220 KV D/C Hatkoti–Gumma Transmission Line which has been completed on 16.03.2019.Thus, “Capital Work in Progress” is overstated by Rs. 107.44 crore and “Fixed Assets” are understated by Rs. 107.21 crore. Further “Depreciation” and “Loss” are understated by Rs. 23.31 Lakh while “Other Equity” is overstated to the same extent.

In this context, it is submitted that as substation and its associated line are an integral part of one project and since the work of 220/400 kV, 1x31.5.MVA substation at Pragtinagar is still in progress as on 31.3.2019 and was not ready for use, as such, 220 kV Hatkoti Gumma Transmission line has not been capitalized.

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ANNUAL REPORT 2018-19 ANNUAL REPORT 2018-19

3. Profit and Loss Account Expenses Depreciation and amortization expenses (Note 2.24-Rs.1446.74 Lakh.)The 220/66/22 KV GIS substation at Bhoktoo was energized and capitalized on 31.03.2018. Additional civil works to the sub-station were completed in 03/2017 for Rs.0.97 crore which was paid and capitalized in 12/2018 i.e. 272 days after capitalization the sub-station work. Thus, “Depreciation and amortization expenses” were understated by Rs.3.83 lakh (for the period of 272 days @ 5.28 p.a.) and “Loss” is also understated by the same extent. Further “Property Plant and Equipment” and “other Equity” is overstated by Rs.3.83 lakh

In this context, it is submitted that the firm has requested for negotiation of rates for civil items executed extra at 220/66/22Kv GIS Sub Station Bhoktoo on dated 07.12.2018 after that the firm has submitted bill amounting to Rs.97,47,270/- on dated 17.12.2018 and the same was paid on dated 28.03.2019. Since no provision was kept at the time of Capitalization of project. The depreciation on above addition will be provided after the booking of expenses in books of accounts w.e.f. 28.03.2019 which comes to Rs.3568/- shall be provided during next FY 2019-20.

4. Balance Sheet Accounting Policies and Notes to Accounts for F.Y. 2018-19(i) Land for 220 KV Snail Hatkoti Transmission Line was acquired from land owners by paying at half of rate of Rs. 3038 per sq. mtr. on the condition that balance payment will be made after the decision of HP High Court and registration will be done thereafter. The HPPTCL was allowed to erect towers on the basis of above mentioned agreement and payment of Rs. 0.58 crore was made for the purpose. These facts had not been disclosed in “Notes to Accounts”. Thus, they are deficient to that extent.

In this context, it is submitted that the amount Rs.58,32,115/- was paid to concerned against 50% cost of land with the condition that the balance cost will be paid at the time of registration of land and has been kept in CWIP of the concerned project. As and when the registration / mutation/ easement right shall be made the same shall be transferred to Land cost of the project.

(ii) Income head include Rs. 1.20 crore as forfeiture of Earnest Money Deposited (EMD) of M/S Herodex Power System Pvt. Ltd. for submitting of fraud Bank Gurantee in the award for construction of 132/220 KV, GIS pooling sub-station at Charor (Kullu). Contractor had filed a petition against the forfeiture in Bombay High Court. But the facts regarding forfeiture and petition had not been disclosed in Notes to Accounts. Thus they are deficient to that extent.

In this context, it is submitted that the forfeiture of EMD / Bid security in respect of M/s Herodex Power Systems Pvt. Ltd. was carried out as per the clause 45.2 of I.T.B of tender document, as there was clear provision for forfeiture of bid security. This was not meant for BG only, the clause also contains Bid security i.e., EMD.

5. Impact of CommentsAs a result of comments, current year's loss of Rs. 40.92 crore has been understated by Rs. 1.98 Crore. In case these adjustments are carries out, loss would amount to Rs 42.90 Crore against depicted figure of Rs 40.92 Crore.

As elaborated above no financial impact is being provided in the books of Accounts.

Sd/- Dy. General Manager (Fin.)

HPPTCL, Shimla.

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