Director's Report for the Year 2010

12th ANNUAL ACCOUNTS FOR THE YEAR 2016-17

CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED

INDEX

Sl. No Particulars Page No.

1. Board of Directors

2. 12th AGM Notice

3. Notes

4. Form of Proxy

5. Company Profile

6. Directors Report

7. Addendum to Directors Report

8. Auditors` Report

9. Secretarial Audit Report

10. Comments of C&AG on the Annual Accounts

11. Balance Sheet

12. Statement of Profit & Loss

13. Cash Flow Statement

14. Notes 1 to 36

15. Vital Statistics

16. Subsidy Statement

BOARD OF DIRECTORS List of Directors (as on the date of AGM)

Shriyuths, 1. Sri. Dr. Rajaneesh Goel IAS Chairman 2. Sri. D. Kiran, IRS Managing Director 3. Sri. K.T. Mahanthappa Director Technical 4. Sri. S. Ziyaullah IAS Director 5. Sri. D. Randeep IAS Director 6. Sri. Pavankumar Malapati IAS Director 7. Sri. H. Nagesh Director 8. Sri. T.R. Ramakrishnaiah Director 9. Kum. Charulatha Somal IAS Director 10. Sri. M. Pratap Director 11. Sri. A. N. Jayaraj Director 12. Sri. Arif khan Director 13. Sri. D. Siddaraju Director 14. Sri. D. Gopal Director 15. Sri. Huchegowda Director 16. Sri. Swamygowda Director 17. Smt. Latha Jayanna Director 18. Smt. B.K. Chandrakala Director 19. Sri. Madanamurali Director 20. Sri. C.K. Suresh Director 21. Sri. A. Shivanna Chief Financial Officer 22. Sri. K. T. Hiriyanna, FCS, Authorised signatory Convener

COMPANY SECRETARY K.T. Hiriyanna

REGISTERED OFFICE No. 29, Vijayanagar 2nd Stage, Hinkal, Mysuru - 560017 website: www.cescmysore.org

CORPORATE IDENTITY NUMBER (CIN) CIN: U40109 KA2004 SGC 035177

BANKERS 1. Syndicate Bank 2. State Bank of Mysore 3. Vijaya Bank 4. Canara Bank 5. Corporation Bank 6. Kotak Mahindra Bank 7. ICICI Bank

STATUTORY AUDITORS M/s Ganesan & Co., Bengaluru

COST AUDITORS M/s NS & Associates, Bengaluru

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CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED (Government of Karnataka undertaking) (CIN: U40109KA2004SGC035177) Registered Office : Corporate Office, # 29, Vijayanagara 2nd stage, Hinkal, Mysuru – 570 017. Telephone No.: 0821-2417101-10, Fax No.: 0821-2417105 Website: www.cescmysore.org , Email: [email protected] , [email protected]

No. CESC/AS/AGM/2017-18/F-10/536-567 Date: 22.09.2017

Encl : 1) Blank Shorter Consent Notice. 2) Blank Proxy Form.

NOTICE

NOTICE is hereby given that the 12th Annual General Meeting of the Members of the Chamundeshwari Electricity Supply Corporation Ltd will be held on Tuesday the 26th September 2017 at 3.00 PM at the registered office of the Corporation, Mysuru to transact the following business:

ORDINARY BUSINESS:

Item No.1: Consideration of financial statements (including CFS), and the reports of the Board of Directors and Auditors.

To receive, consider and adopt the financial statement of the Company for the year ended, 31st March 2017 including the audited Balance Sheet as at 31st March 2017, the statement of Profit & Loss for the year ended on that date and report of the Board of Directors (the Board) and Auditors report together with the comments received from the Comptroller & Auditor General of India under Section 146 (6) of the Companies Act, 2013.

Item No.2: To declare a dividend on equity shares / any other decision if thought fit as per section 123 of Companies Act 2013.

Item No.3 (a): To consider appointment of Statutory Auditors and to fix their remuneration.

Item No.3 (b): To consider appointment of Cost Auditors appointed by the Board pursuant to section 148 (3) of Companies Act 2013 read with relevant rules thereunder.

By Order of the Board, for Chamundeshwari Electricity Supply Corporation Limited

Sd/- (K. T. HIRIYANNA) Authorized Signatory

To : 1) All the Members (Shareholders) - by name 2) All the Directors - by name 3) The Statutory Auditors - by name

NOTES:

1) A member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend and vote instead of himself and the proxy need not be a member of the Company (Proxy Form Enclosed).

2) The Company being a Government Company, the Comptroller & Auditors General of India will appoint the Auditors of the Company for the Year 2016-17 under section 139 (5) of the Companies Act 2013.

3) The Company being a Govt. Company, the aspect of declaration of dividend will be in accordance with the recommendation of the Board, decisions of shareholders as deem fit and in accordance with the provisions of Companies Act, 2013.

4) The Consent for holding the meeting at shorter notice is enclosed. This may be retransmitted to the Company.

NOTES

1. A member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend and vote instead of himself and the proxy need not be a member of the Company.

2. The Company being a Government Company, the Comptroller & Auditors General of India has appointed the Auditors of the Company for the Year 2016-17 under section 139(5) of the Companies Act 2013 vide appointment order No.CA V/COY/KARNATAKA, CESCL(1)/978 Dated 11.08.2016.

3. The Company being a Govt. Company, the aspect of declaration of dividend will be in accordance with the recommendation of the Board, decisions of Shareholders as deem fit and in accordance with the provision of Companies Act, 2013.

By Order of the Board, For Chamundeshwari Electricity Supply Corporation Limited

Sd/- Place : Mysuru (K. T. HIRIYANNA) Date : 22.09.2017 Company Secretary

To : 1) All the Members (Shareholders) - by name 2) All the Directors - by name 3) The Statutory Auditors - by name

CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED (Government of Karnataka undertaking) (CIN: U40109KA2004SGC035177)

FORM OF PROXY

I/We ...... being a member / members of the above mentioned Company hereby appoint ...... as my / our proxy to vote for me / us on my / our behalf at the 12th Annual General Meeting to be held on 26.09.2017 the ...... and at any adjournment thereof.

Signed this ...... day of September, 2017.

Signature [Shareholder]

Note :

1) This instrument of proxy shall be deposited at the Regd. Office of the Company not less than 48 (Forty Eight) hours before the time of holding the aforesaid meeting.

2) A Proxy need not be a member of the Company.

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CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED PROFILE OF CESC

Chamundeshwari Electricity Supply Corporation Limited (CESC) with its Headquarters at Mysore, is a Company incorporated under the Company’s Act – 1956 vide GO No. EN 98 PSR 2004 Bangalore dated 19th Aug 2004 duly bifurcating MESCOM in respect of retail supply of electric power for four districts in the State of Karnataka, viz., Mysore, Mandya, Chamarajanagar and Hassan. The District of Madikeri was included in the jurisdiction of CESC as per GOK order dated EN 95 PSR 2005 dated 29.03.06 with effect from 01.04.2006.

The Company’s capital is fully owned by GOK and its Board of Directors are nominated by the Government. The operational area of the Company covers a contiguous area of 27772.82 sq. kms, and serving a population of more than 81.55 Lakhs.

CESC has commenced functioning as Electricity Distribution Company from 01.06.2005. By virtue of Transfer Scheme Rules made under Karnataka Electricity Reforms Act. 1999, distribution system of 33 KV and below along with specified lines, posts and personnel have been transferred to the company from the MESCOM.

THE ADMINISTRATIVE AND OPERATIONAL STRUCTURE

The Chamundeshwari Electricity Supply Corporation has 17 numbers of O & M Divisions, 61 Sub-Divisions and 260 O&M Units.

A. The Divisions of N.R. Mohalla, V.V. Mohalla Mysore, Nanjangudu, Hunsur comes under the Administrative control of Mysore O & M Circle with Head- quarters at Mysore.

B. The Divisions of Madikeri, Chamarajanagar, and Kollegal comes under the Administrative control of Chamarajanagara-Kodagu Circle with Head-quarters at Mysore.

C. The Divisions of Mandya, Maddur, Pandavapura, Nagamangala and K R Pete comes under the Administrative control of Mandya circle, with Headquarters at Mandya.

D. The Divisions of Hassan, Channarayapatna, Arasikere, Holenarasipura and Sakleshpura comes under the Administrative control of Hassan Circle with Headquarters at Hassan.

E. The Company has O & M Zone headed by Chief Engineer located at Mysore. The O & M Zone with Headquarters at Mysore has the Administrative Control of all the four O & M circles of Mysore, Chamarajanagara-Kodagu, Mandya and Hassan.

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All the Sections, Sub-Divisions, Divisions and Circles as well as O & M Zone works under the administrative control of the Corporate Office headed by the Managing Director. He is assisted by the Director (T) and the Chief Financial Officer.

The Company is dedicated to the business of power distribution, has initiated a number of actions on several fronts. Strategy is being devised to control the distribution losses by strengthening the energy audit system. Further, all efforts are being made to meter every installation in the distribution system, despite hostility by a section of Consumers averse to fixing of meters to their installations.

12th Annual Report 2016-17

DIRECTOR’S REPORT FOR FINANCIAL YEAR 2016-17 Dear Members, 1. The Board of Directors have pleasure in presenting the 12th Annual Report of business and operations of the Corporation, for the year ended 31st March 2017. 2. The Corporation has successfully completed the Twelth year in the business of distribution of electricity. The Corporation is having its registered Office at Mysore City with its jurisdiction comprising the districts of Mysore, Hassan, Mandya, Chamarajanagar and Kodagu. 3. At a glance the Status of the Company as on 31st March 2017 is as follows:

Area of distribution and Supply (Sq.Km.) 27772.82

District 05

Total Population (as per census 2011) 8155369

Number of sub stations 220 KV, 110 KV, 66 KV ( of KPTCL) 204

Number of 33 KV sub stations 05

Number of Distribution Transformers 106280

Length of LT Lines (in CKMs) 81572.83

Length of 11 KV lines ( in CKMs) 51453.92

Length of 33 KV lines (in CKMs) 120.45

4. FINANCIAL PERFORMANCE

For the year ended For the year ended Particulars 31.3.2017 (` in crs) 31.3.2016 (` in crs) Income Revenue from sale of power 3479.03 2775.83 Other income 211.32 215.23 Total income 3690.35 2991.06 Expenditure Purchase of Power 3266.90 2717.75 Employee Benefit Expense 315.41 327.65 Finance Costs 197.20 150.30 Depreciation 147.57 117.45 Other Expenses 234.06 119.47 Total expenditure 4161.14 3432.63

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 1

12th Annual Report 2016-17

For the year ended For the year ended Particulars 31.3.2017 (` in crs) 31.3.2016 (` in crs)

Less Regulatory Income 517.99 464.46

Provision for Taxation 25.75 14.97

Net Profit/Loss 21.44 7.92

5. DIVIDEND The Board has not proposed any dividend for the financial year ended 31st March 2017. 6. CUSTOMER BASE The Corporation as on 31st March 2016 had a consumer base of 2850039 Nos. With the addition of 114841 Nos. new consumers during the year, the number of consumers as at the end of the year March 2017 is 2964880 Nos.

Tariff Description Total 2016-17 Total 2015-16 LT -1 BJ/KJ 496789 497094 LT-2 (a&b) Lighting & AEH 1775815 1701751 LT-3 Comm. Lighting 226005 214783 LT-4 IP Set 345783 324144 LT-5 LT Industrial 38835 37238 LT-6a (1) Water Supply - VPs / TPs/CMC/TMC 24228 22415 LT-6a (2) Public Lighting - VPs / TPs/CMC/TMC 21194 20132 LT-7 Temporary Supply 34307 30649 LT TOTAL 2962956 2848206 HT-1 Water Supply 125 121 HT-2a HT Industrial 876 845 HT-2b Commercial 566 540 HT-2c Hospital & Educational Institutions 237 214 HT-3a Lift Irrigation 88 81 HT-3b Agricultural / Horticultural Forms 2 2 HT-4 Residential Apartments 12 16 HT-5 Temporary Supply 18 14 HT TOTAL 1924 1833 LT + HT TOTAL 2964880 2850039

2 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

12th Annual Report 2016-17

Review of Balance Sheet and Profit and Loss Account for the year ending March 31st 2017

(` in lakhs)

Sl. No. Particulars 31.03.2017 31.03.2016 I Sources of funds A Share Capital 50856.54 50856.54 B Reserves & Surplus 6395.50 -3510.81 C Share Deposit (pending allotment) 15229.00 1400.00 D Share holders’ fund (A to C) 72481.04 48745.74 1 Non Current Liabilities (a) Long Term borrowings 100404.03 85330.24 (b) Deferred Tax Liabilities(Net) 9074.61 7169.05 (c) Other long term liabilities 61837.94 55861.14 (d) Long term provisions 0.00 0.00 Sub-total 171316.58 148360.43 2 Current liabilities (a) Short term borrowings 24013.03 4157.85 (b) Trade Payables Dues to MSME’s 0.00 0.00 Dues to Other’s 286800.53 231553.78 (c) Other Current liabilities 99120.36 92320.43 (d) Short-term provisions 588.99 0.00 Sub-Total 410522.91 328032.05 TOTAL EQUITY & LIABILITIES 654320.53 525138.22 II Assets 1 Non-Current assets (a) Fixed Assets (i) Tangible Assets 229200.49 188993.53 (ii) Intangible assets 515.17 3.31 (iii) Capital work in progress 26019.02 26174.35 (iv) Intangible assets under development 351.20 0.00 (b) Non-Current investments 251.00 251.00 (c) Long term loans and advances 0.00 4.69 (d) Other non-current assets 122017.83 52395.08

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 3

12th Annual Report 2016-17

Sl. No. Particulars 31.03.2017 31.03.2016 Sub Total 378354.71 267821.95 2. Current assets (a) Current Investments 0.00 0.00 (b) Inventories 5081.52 6831.39 (c) Trade receivables 216031.85 181241.76 (d) Cash and Bank Balances 16728.92 19178.99 (e) Short-term loans and advances 6728.46 12737.14 (f) Other current assets 31395.06 37326.99 Sub-Total 275965.82 257316.27 TOTAL ASSETS 654320.53 525138.22

 Share holders Funds:- Compared to previous FY16, the fund has increased by ` 23735.30 lakhs

ABSTRACT ` In lakhs

Sl.No Particulars FY16-17 FY15-16 Difference

1 Share Capital 50856.54 50856.54 0.00

2 Reserves Surplus 6395.50 -3510.81 9906.30

3 Share Deposit 15229.00 1400.00 13829.00

4 Netoff 4= (1+2+3) 72481.04 48745.74 23735.30

 Share Capital: During the year there is no increase in Share Capital.

 Reserves and surplus has increased to an extent of ` 9906.30 lakhs due to

Sl.No Particulars ` in lakhs

A Current year Loss / Profit 2144.37

B Consumers contribution towards cost of Capital Assets 15684.61

C Proposed for Net worth Adjustment (3401)

D Less Reversal of Depreciation as per AS-12 4521.68

Difference (A+B-C-D) 9906.30

 Share Deposit has increased by ` 13829 lakhs due to infusion of equity during the Current Year by GOK as Equity investment towards SDP ` 1080 lakhs, SCSP & TSP ` 3249 lakhs, DTC Metering ` 3000 lakhs & Capex works ` 6500 lakhs.

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12th Annual Report 2016-17

 Long term borrowings: It is increased by ` 15073.79 lakhs. Is due to withdrawal of balance loan towards NJY Phase-2 projects around ` 9358 lakhs and for NJY Phase-1 around ` 613 lakhs and additional borrowings towards CAPEX works around ` 5000 lakhs. The loan details are depicted in Note-4.7.  Deferred Tax Liability(Net) has increased by ` 1905.56 lakhs over the previous year (The timing difference of depreciation rates between Companies Act & Income Tax Act)  Other Long Term Liabilities: It is increased by ` 5976.79 lakhs (Net). During the Year the Initial / Additional Security deposits have been collected to the extent of ` 5143.97 lakhs and MSD to the extent of ` 23.90 lakhs. The retention money and Security Deposit from the Contractors amounting to ` 857.65 lakhs has increased.  Short Term Borrowings: There is an increase in the short term borrowings to the extent of ` 19855.18 lakhs due to additional borrowing of ` 10000 lakhs from REC and enhancement of OD by ` 15000 lakhs (From 5000 lakhs to 20000 lakhs) from SBI and utilized towards payment of purchase bills. And loan repaid during the year is ` 5144.81 lakhs.

 Trade Payables: The trade payables have been increased by ` 55246.76 lakhs (net). The case to case increase / decrease in Trade Payables is depicted in Note-9.

 Other Current Liabilities: It has been increased to the extent of ` 6799.93 lakhs, is due to increase in debt service to an extent of ` 3669.12 lakhs, Interest accrued on borrowings ` 26.46 lakhs, Increase in Retension money around ` 1933.80 lakhs. The A/c code wise increase / decrease in other current liabilities is depicted in Note-10.  Short-term provision: It is increased by ` 588.99 lakhs due to provision made for current year taxes.  Tangible Assets: It has been increased by ` 40206.96 lakhs (Net) due to categorization of Capital Works during the Year.

 Intangible Assets: It has been increased by ` 511.86 lakhs (Net) due to categorization of software during the Year.  Capital Work in progress: It is decreased by ` 155.32 lakhs. Due to capitalization of completed works.  Other Non-Current Assets: It is increased by ` 69622.75 lakhs is mainly due to creation of Regulatory Asset to an extent of ` 63840 lakhs and in FY-16 the company had accounted ` 51798 lakhs as regulatory asset. In FY-17 the Company has accounted ` 63840 lakhs as additional regulatory asset by computing the provisional gap expected to be considered by KERC for inclusion in the tariff revision during 2017-18 and a sum of ` 12041 lakhs of

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 5

12th Annual Report 2016-17

regulatory assets which was already created in FY-16 is reversed by retaining ` 34405 lakhs since the same will be recovered in FY-17-18. The total regulatory asset accounted under Non-Current Assets is ` 98244 lakhs. The case to case increase / decrease in Non-Current Assets is depicted in Note-19.  Inventories: It is decreased by ` 1749.87 lakhs compared to previous year.

 Trade receivables: It is increased by ` 34790.09 lakhs. a) As per GOK order No. EN 67 PSR 2017 Bangalore dated 31.07.2017 an amount of ` 9069 lakhs towards old past RE subsidy dues to be transferred from KPTCL as receivable from GOK against past power purchase dues payables to KPTCL. b) Subsidy receivable from GOK towards free supply to BJ / KJ and IP sets balance to an extent of ` 30579.24 lakhs. The increase / decrease in trade receivables is depicted in Note-22.  Short term Loans and Advances: It is decreased by ` 6008.67 lakhs mainly due to adjustment of advance amount paid to contractors / suppliers towards their final bills.  Other Current Assets: It has been decreased by ` 5931.93 lakhs mainly due to decrease in receivables towards Energy Balancing cost from HESCOM of ` 3100.44 lakhs & from GESCOM of ` 3154.01 lakhs and recovery of Regulatory Assets of ` 12041 lakhs.

 Ratios

Sl. No. Particulars 31.3.2017 31.3.2016

Debt: Equity Ratio 1 1.52:1 1.63:1 (Long Term Borrowings : Equity)

Analysis of Profit and Loss Account (` in lakhs)

Sl. Increase/ Variance Particulars 31.03.17 31.03.16 No. decrease in (%) A Income Revenue from operations 1 347902.86 277583.11 70319.76 25.33 (Distribution of Power) 2 Other Income 21132.44 21523.42 -390.98 -1.82 Total Revenue 369035.30 299106.53 69928.78 23.38 B Expenses 1 Purchase of power 326690.70 271774.60 54916.10 20.21 2 Employee Benefits Expense 31541.01 32765.04 -1224.04 -3.74

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12th Annual Report 2016-17

Sl. Increase/ Variance Particulars 31.03.17 31.03.16 No. decrease in (%)

3 Finance Costs 19720.03 15030.15 4689.88 31.20

Depreciations and amortization 4 14757.07 11745.83 3011.24 25.64 expenses

5 Other Expenses 23406.14 11947.37 11458.77 95.91

Total Expenses 416114.95 343263.00 72851.95 21.22

C Profit before tax -47079.65 -44156.47

D Regulatory Income / Expenses 51798.60 46446.00 5352.60 11.52

E Tax Expense

Deferred Tax 1905.56 1497.25

Income Tax 669.02 0.00

F Profit after Tax 2144.37 792.28

 Total Revenue has increased by 25.33% (` 70319.76 Lakhs) over the previous year due to increase in sale of units to the extent of 855.05 MU’s and increase in the installations 114841 & due to revision of tariff.  Other Income has decreased by 1.82% (` 390.98 lakhs) over the previous year is mainly due to withdrawal interest claimed on RLB dues to an extent of ` 4709.05 lakhs due to securitization of RLB dues.  Power purchase cost has been increased by 20.21% (` 54916.10 lakhs) over the previous year is due to increase in purchase of energy to an extent of 1099.99 Mus as a result of increase in allocation of CGS energy, increase in purchase from IEX, Increase in Transmission Charges of KPTCL & PGCIL & Overdrawal of Energy to an extent of 733.64 Mus which resulted in increase of Power Purchase Cost to an extent of ` 29440.58 lakhs.  Employee cost has decreased by 3.74% (` 1224.04 lakhs) over the previous year.  Finance Charges has increased by 31.20% (` 4689.88 lakhs) over the previous year is due to the payment of interest to commercial banks on debt.

 Depreciation and amortization expenses have increased by 25.64% (` 3011.24 lakhs) due to increase in Capitalization of assets.  Other expenses has increased by 95.91% (` 11458.77 lakhs) over the previous year due to write-off of interest on RLB dues to an extent of ` 4709.05 lakhs as per GOK order dated 31.03.2017, Short provision for power purchase to an extent of ` 697.31 lakhs & other expenses relating to prior

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 7

12th Annual Report 2016-17

period to an extent of ` 3200 lakhs. The increase / decrease in other expenses is depicted in Note-22.

 Deferred Tax has increased by 27.27% (` 408.31 lakhs) over the previous year (The timing difference of depreciation rates between Companies Act & Income Tax Act)

 Current Year income tax liability of ` 669.02 lakhs has been accounted.  Regulatory Asset The Company is engaged in operation of Supply of Electricity to the consumers covered under its jurisdiction. The rates are regulated by the Honb’le Karnataka Electricity Regulatory Commission (KERC). As per section 62 of Electricity Act 2003, the CESC is filing tariff application yearly with Regulatory Commission for determination of tariff. The Regulatory Commission determines the tariff as per procedures laid in section 64 of Electricity Act 2003. The Company collects tariff from consumers as approved in the tariff order issued by the Regulatory Commission. The Honb’le KERC through its Tariff orders allow recovery of deficits in subsequent periods besides through truing up orders. In this back ground, the Company has accounted the regulatory asset of ` 517.99 Crs being recognition of ` 638.40 Crs of additional regulatory asset computed towards the provisional gap expected to be considered by KERC for recovery in subsequent years and reversal of ` 120.41 Crs created in FY16. Thus the regulatory Assets as on 31.03.2017 is as follows: Non Current Asset - ` 982.44 Crs (Previous Year : ` 344.05 Crs) Other Current Asset - ` Nil (Previous Year : ` 120.41 Crs)

 Corporation has incurred Net Profit to an extent of ` 2144.37 lakhs. 7. Power Purchase During the year 2016-17, the power purchase is 7544.85 MU at a total cost of `3266.90 Crs. Total energy available for sale is 7204.35 MU. Total sales during the year was 6260.28 MU. Remaining 944.07 MU was attributable to system loss.

8. Power Purchase details A) CESC is purchasing power from generators as per GOK order No.EN 131 PSR 2003 dated 10.05.2005. The power is procured from the following sources during FY16-17. a) Central Generating Stations like NTPC, NLC, NPCIL b) State owned generating stations of KPCL-Hydel & Thermal.

c) Major Independent Power Producer - UPCL d) Independent power producers from non-conventional sources like wind, Solar & Mini hydel.

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12th Annual Report 2016-17

B) The GOK issues order allocating share to each ESCOM’s for payment purpose and also power allocation. The energy allocation to CESC for FY16-17 as per order dated 18.03.2016 is as given below ( EN 22 PSR 2016 B’lore)

Avg.Power Sl Source % Share of allocation Purchase Cost No. in paise / Kwh

1 (a) KPCL Hydel: 22.723% & 11.0531% 95

(b) KPCL Thermal 4.5462% & 11.0531% 478

RTPS 1 to 7 4.5462% 427

RTPS VIII 11.0531% 467

BTPS Unit I 11.0531% 629

BTPS Unit II 11.0531% 541

2. Central Generating Stations:

(a) NTPC 11.0531% 338

(b) NLC 11.0531% 429

(d) MAPS 11.0531% 218

3. Major IPPs

Udupi Power Company Ltd. 11.0531% 449

4. Minor IPPs (NCE Projects)- Co gen 445

Biomass No allocation, Exclusive 489 Purchase

Mini Hydel No allocation, Exclusive 336 Purchase

Wind No allocation, Exclusive 352 Purchase

UI 269

Medium Term 11.0531% 431

Short Term 11.0531% & 12.5% 405

Sec11 502

Solar Roof Top Exclusive Purchase 980

The above allocation is applicable from 01.04.2016 to 31.03.2017.

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 9

12th Annual Report 2016-17

C). Comparison of source wise power purchase cost during FY17 & FY16:

2016-17 2015-16

Source Energy Cost Average / Energy Cost Average/ (MU) ` (lakhs) unit (MU) ` (lakhs) unit

KPCL-Hydel 1047.85 9964.60 0.95 1030.89 11481.99 1.114

KPCL-Thermal 1269.42 60648.92 4.78 1313.98 59348.84 4.517

CGS 2472.78 88481.52 3.58 1601.00 48877.04 3.053

IPPS 818.85 36790.75 4.49 991.82 41635.83 4.198

NCE 450.43 17841.78 3.96 457.23 15811.46 3.458

Medium & Short term 418.44 17941.28 4.29 480.05 24898.21 5.187 power purchase

Peak Power (IEX) 93.84 2871.72 3.06 0.57 25.96 4.562

Bundled Power 67.85 3136.40 4.62 67.39 2883.98 4.280

Captive Power 0.00 0.00 0.00 0.00 0.00 0.00

KPTCL Transmission 34650.33 0.00 30542.22 0.00 Charges

PGCIL Transmission 15511.27 0.00 10481.91 0.00 Charges

UI Charges & Other 170.32 9031.42 5.30 471.36 23446.94 4.974 Expenses

SLDC Charges 240.00 0.00 215.72 0.00

Solar Roof Top 1.43 140.13 9.80 0.04 3.74 9.752

Total 6811.21 297250.12 4.364 6414.32 269653.85 4.204

Energy Balancing 733.64 29440.58 4.01 30.54 2120.75 6.945 adjustment

Sub Total 733.64 29440.58 4.01 30.54 2120.75 6.945

Energy balancing adjustment of previous 0.00 0.00 0.00 0.00 0.00 0.00 years due to change in quantity & rate

Net Energy & Amount 7544.85 326690.70 4.329 6444.86 271774.60 4.217

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12th Annual Report 2016-17

D) Transmission Charges: CESC is making payment of transmission charges to KPTCL and PGCIL. The Transmission Charges being paid to KPTCL is on MW basis as approved by KERC and for PGCIL as approved by CERC. 9. An overview of the performance of CESC is as under:

Sl Particulars Measure 2016-17 2015-16 2014-15 2013-14 2012-13 No 1. Total Lines & TCs added: a. DTCs erected Nos. 12022 10172 10057 10829 6004 b. 11 KV HT lines RKms 4472.58 4323.80 5164.98 4514.02 1726.42 c. LT lines RKms 2195.03 4260.55 1842.36 1800.56 1082.26 d. Reconductring of HT Lines RKms 165.10 266.45 173.70 167.52 35.73 e. Reconductring of LT Lines RKms - - - - - 2. DTC Failures % 9.26 10.76 12.33 11.24 12.84 3 RE Works: a. Electrification of Hamlets Nos. 3 0 0 0 330 (DDG) b. Electrification of Nos. 0 0 0 0 356 Basthies/JCs/Tandas c. Electrification of Tribal Nos. 0 0 0 0 1 Colonies d. Electrification of Nos. 2 0 0 0 0 Un-electrified villages 4 Servicing of a Drinking WSS Nos. 1473 748 1310 2856 1398 b. Ganga Kalyana Schemes Nos. 3020 2049 1808 3455 1878 5 IP Sets Serviced a. New IP Sets Nos. 18382 7131 14666 1534 1602 b. Regularization of Nos. 3331 2887 4969 19964 6723 Unauthorized IP sets 6 BJ/KJ installations serviced Nos. 0 0 657 2464 4269 7 Total Energy Purchased MU 7544.85 6444.86 6299.35 6229.97 6149.75 8 Total Energy @ Interface MU 7204.35 6256.07 6084.89 5995.61 5857.84 Point 9 Total Energy Sales MU 6260.28 5405.23 5240.07 5112.33 4974.93 10 Distribution loss % 13.10 13.60 13.88 14.73 15.07

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PERFORMANCE OF PROJECTS “Development & deployment of web based Feeder wise Data Analysis and Outage Management along with support and maintenance for a period of one year in CESC” 1.0 Scope of work: (a) Feeder wise Data Analysis 1. SCADA System is installed covering the entire power system of Karnataka up to the 11KV feeder level and all the major generation units. This data is collected at the time interval of ten seconds and stored at the time interval of every minute in oracle database. An application that will help in analyzing the raw data being collected by the SCADA system for 11KV feeders and major generation assets. 2. Application is able to read raw data stored on a server in oracle database and able to support the following reporting functions

(i) Historical Reports – 1) Duration of time a feeder has been shutdown in a given time interval. 2) Number of interruptions suffered by each feeder in a given time interval.

3) Comparative analysis on performance of feeders in different division, districts. 4) Total, average and peak load on each feeder.

5) Report the worst performing feeders in each zone, division. 6) Report the total energy generation by each source during a given time interval.

7) Report the generation mix during a given time interval. (ii) Current System Status Reports- 1) Actual demand vs scheduled and forecasted demand.

2) Actual wind and solar power vs forecasted power. 3) Current outages on the feeders. 3. All the reports have the options to be exported as CSV files.

4. The application supports automated daily report generation and sending them through email. (b) Outage Management

1. Application that will support the process of 11KV feeder shutdown during the event of unscheduled outage. Unscheduled outage can result because of the loss of a generating units or a loss of a major transmission element.

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2. The State Load Dispatch Centre (SLDC) is the central body responsible for balancing the load and supply in the grid. During such event, SLDC is informed about the shortfall in the generation, and the required load relief for the balance of the grid. SLDC then asks each distribution company in the state to curtail the load by shutting down the 11KV feeders, enough to meet the required load relief. 3. SCADA system is installed covering the entire power system of Karnataka up to the 11KV feeder level. This data is collected at the time interval of ten seconds and stored at the time interval of every minute. Looking at the history of outages of feeder that include the outage duration and the number of interruptions, the applications makes the selection of the feeders, so that all feeders over the time have suffered the same duration of outage, as well as the number of interruptions suffered by each feeder. 4. Also during such event, a close coordination is required between State Load Dispatch Centre and Distribution Control Centre at CESC, to select and shutdown the feeders to provide a load relief required for the grid stability and also for the adherence to the grid code.

5. The application is capable to cover all the feeders in CESC area. i) Through the interface exposed to CESC, they can access the protocol and modify the priority listing and logic used in the indiscriminate selection of the 11KV feeders to shut down. ii) The program gives the quantum of load to be shed by CESC by keeping in mind the present quantum of over drawl/underdrawl which will be intimated to SLDC about the shut down of selected feeders. iii) Communication to relevant stakeholders through SMS & E-mail. iv) CESC is able to access historic information on the total outage duration, and the number of interruption, on each 11KV feeders in their distribution area. v) The generation of reports as required by CESC from time to time.

vi) The application software designed is compatible for third party software integration like TRM, PGRS and other relevant system at CESC. Rural Feeder monitoring through National Power Portal (NPP)

Ministry of Power, Government of India has decided to bring data from 11KV Rural feeders to National Power Portal to know the availability and quality of Power supply in Rural areas. As a pilot project, it has been decided that the data from the states including Karnataka where data is already being captured at central location(SCADA) may be immediately brought to National Power Portal. In order to achieve the same the Master Data is furnished to NIC and after acceptance the Transaction data during the month is also pushed to NPP.

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Implementation of Outage Management System(Urja-Mitra) in CESC Urja-Mitra provides a web and app enabled platform, establishing links between call centres, CESC field staff and CESC consumers for facilitation of outage dissemination information of all consumers through SMS and data. Urja-Mitra is a single platform developed by REC to disseminate all types of Outages in both Urban and Rural areas. CESC has implemented Urja-Mitra and scheduled outages are being broadcasted through this portal.

Public Grievance Redress System (PGRS) in CESC

 The consumers of CESC can register electricity complaints 24X7 by reaching CESC Helpline “1912”.

 Web based PGRS (Public Grievance Redress system) Software is installed succesfully and working satisfactorily enabling fast complaint registration and redressal at customer care center from 22.09.2015.

 The website address is http://www.cescmysorepgrs.com. Provision of consumer complaints registration through various sources like; helpline, SMS, Email, Web and Retrieving of consumer history is there in the software.

 A complaint received at customer care center will be registered immediately in the software and system generated docket numbers are intimated simultaneously to consumers and to the concerned sub divisional officer/ section officer or local service station automatically via SMS to their mobile numbers.

 Once the complaint is resolved, the status of complaint will be updated by concerned sub divisional officer/ section officer / local service station or customer care executive, on confirmation from the complaint and the docket will be closed. The consumers can also track the status of their complaint through online.

 CESC Helpline “1912” is made toll free from 6-7-2016.

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Ag-DSM programme:

1337 Nos of IP sets of Malavalli Taluk were replaced by Energy Efficient Pump sets (EEP) in March 2015. The energy savings achieved from this project is around 37%. The energy savings is calculated on the basis of difference of energy consumed by old pumps and after installation of Energy Efficient Pumps for the same amount of water output. The bill for the savings is computed on monthly basis with 6 hours operation of pump sets /day for 10 months in a year. The savings is shared on mutually agreed basis of 90% to EESL and 10% to CESC at the KERC determined rate from time to time.

Energy Savings:

Energy Consumption Annual Energy Sl DPR Cost % Year in Units Savings in No ` in lakhs Savings Before After KWH

2015-16 (After 1 15359796 9691308 5668488 36.9 implementation)

454.99 2016-17 (After 1st 2 Measurement & 15359796 9807230 5552566 36.15 Verification)

AgDSM in Malavalli

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Unnat Jyothi by Affordable LEDs for All (UJALA) (DELP):

Chamundeshwari Electricity Supply Corporation Ltd (CESC) is implementing Unnat Jyothi by Affordable LEDs for All (UJALA) popularly known as ‘‘Hosa Belaku’’ to provide high quality 9W LED bulbs at an affordable rate to consumers. Energy Department, Government of Karnataka has designated Energy Efficiency Services Limited (EESL), a public sector entity under the administrative control of Ministry of Power as implementing agency for UJALA in the state. The programme was launched on 11.12.2015 in Mysore by Hon’ble Chief Minister of Karnataka.

Under this scheme, 9W LED bulbs are being provided to domestic consumers of CESC at an affordable rate i.e @ ` 70/- per bulb.

Further the LED bulbs carry a technical warranty for 3 years against any defects. The market price of these bulbs is between ` 150 - 200. The replacement would benefit consumers between ` 120 - 200 (based on whether CFL or incandescent bulb is replaced) every year. Therefore the simple payback of the cost of LED bulbs, at ` 70/- for the consumers will be 7-8 months through saving in electricity bills.

Around 64 lakh LED bulbs of 9W capacity are being planned to distribute through M/s EESL each at cost of ` 70/- only to consumers. This will have an annual energy savings of 126 MU.

Energy Savings is as follows:

Sl. As per As per Actual Particulars Unit No Survey Distribution 1 Number of LEDs bulbs Nos 6360934 3063223 Average Wattage of 60W ICL and 14W 2 CFL (Assumed penetration in the ratio of Watt 27.8 27.8 30%:70% of ICLs:CFLs) 3 Wattage of LED Watt 9 9 4 Power saving Watt 18.8 18.8 5 Hours of Usage Hrs/day 3.5 3.5 6 Operating days per year Days/year 300 300 7 Energy saved per LED per Day kWh 0.0658 0.0658 8 Energy saved per LED per year kWh 19.74 19.74 9 Total Energy saved per year Million kWh 125.56 60.47 Total annual savings in power purchase 10 ` Cr. 54.12 26.06 cost (` 4.31 per kWh) 11 Potential reductions in peak load (apx) MW 119.00 58.00

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UJALA Programme launching at Mysore

Transformer Testing Centers at CESC:

A committee was formed for standardizing the common distribution transformers technical specifications for Energy efficiency level-1 3 Star rated transformers in all ESCOMs and the committee deliberated the various points and has come up with 30 point technical specification list to be adopted uniformly in all ESCOMs. Energy Department, GoK has instructed all ESCOMs for implementation of this committee report for all future procurements.

As per the Govt Order dated 05.10.2015, 4no’s Transformer Testing Centers have been established by providing new technological sophisticated testing equipment’s to carry out the testing of transformers at Mysore, CH Nagar, Mandya and Hassan Circle jurisdictions. CESC has invested ` 33.0 lakhs for establishing each test center. As on June-17 3591 No’s of transformers are tested in the testing centers. CESC has placed purchase order on 27.02.2017 to establish Transformer testing centers at another 11 Divisions at a total Cost of ` 2.64 crores. The instructions have been given for compulsory testing of transformers for the transformers procured for TTK works/Company purchase/Repaired DTC’s in future.

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Transformer testing center at Mandya

I. ON-GOING WORKS

1. Smart Grid Pilot Project:

Smart Grid is an initiation of Ministry of Power, Govt. of India for establishing Smart Grid in India for increasing power availability, reducing AT&C losses and optimal utilization of resources for sustainable growth.

In order to develop Smart Grid in India MoP has taken up pilot Smart Grid projects as suggested by India Smart Grid Task Force. MoP has selected 14 Pilots from the different state utilities, CESC is one among 14 pilots selected for implementation Smart Grid Pilot Project.

Smart Grid enables,

• Highly Flexible, Efficient, Optimized Operations

• Full support for market based Demand Side Management

• Integration of alternate Generation and Distributed Energy resources

• New Products, Markets and Services

• Quality Power

• Optimum Asset Utilization and Operations efficiency

• Resilience against to system disturbances and calamities.

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Pilot Area: V V Mohalla Sub-division:

Area of implementation V.V.Mohalla, Metagally, Hebbal, Vijaya Nagara, Hootagally and Ilawala consists of 14 no of 11KV Feeders of V.V.Mohalla Division of Mysore City Date of Award for System Integrator 30-04-2014, M/s Enzen Global Solutions, Bengaluru Total approved cost (` in Cr.) 32.59 GoI contribution (@ 50 % ` in Cr.): 16.30

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Consumer type Consumers Consumption %

LT1-Bhagya Jyoti 538 0.1%

LT2-Domestic 19653 15.0%

LT3-Commercial 2410 5.0%

LT4-Agri - IP 580 2.8%

LT5-Industrial 677 11.7%

LT6-Street Light 316 2.5%

LT-7 Temporary 233 0.4%

HT 125 62.6%

Total 24532 100%

Status as at the end of March-2017:

• “Hardware design, Network configuration & test procedures” and “Software solution, Functional specifications, data flow exchange” is approved.

• Smart Grid Control Center is established with all server hardware and software.

• 18750 Single phase meters are supplied and 18050 are installed.

• Three Phase meters work is under progress.

• 190 TMU are supplied and 160 are installed and communiciation is achieved.

The project to be expected to complete in September – 2017.

2. Niranthara Jyothi Yojana (NJY):

Niranthara Jyothi Yojana a prestigious flagship scheme of Government of Karnataka being implemented in CESC under Two Phases, for providing continuous power supply to non-agricultural loads in rural areas. The project is being implemented in 24 taluks in CESC Jurisdiction, through construction of new 11KV feeders and providing distribution transformers for segregation of non-agricultural loads & agricultural loads in rural areas.

NJY Phase-1 is being implemented in 10 taluks on partial turnkey basis at an estimated cost of ` 248 crores with a proposal for construction of 161 feeders covering 3358 Nos of villages.

Out of 161 Nos. of feeders. 26 Nos. feeders works are proposed to be short closed as per the 45th Board meeting resolution. DWAs are issued to takeup these feeder works under Deen Dayal Upadhyay Gram Jyothi Yojana (DDUGJY) Scheme.

NJY Phase-2 is being implemented in 14 taluks on Total turnkey basis and works are awarded at DWA cost of ` 500 crores with a proposal for construction of 235 feeders covering 3440 Nos of villages.

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Status as at the end of March-2017:

NJY Phase-1: Out of 135 feeders 130 Nos of feeder works are completed, work is under progress in 5 feeders and is expected to complete by Sep-2017.

NJY Phase-2: Out of 235 feeders proposed 211 Nos of feeder works are completed and work is under progress in 14 feeders. Balance 10 Nos feeders works are to be taken up and is expected to complete by Sept-2017.

3. Restructured Accelerated Power Development And Reforms Programme (R-APDRP):

Even after implementing APDRP scheme the absolute level of losses were still at a higher level and needed further efforts for achieving lower loss levels. Also reliable & verifiable baseline data for revenue & energy were required for verifying exact AT&C losses in an area and further detection of commercial and technical loss pockets.

In order to achieve the above objective, the need for adoption of integrated IT system by utilities was recognized and hence, MOP, GOI launched Restructured APDRP (R-APDRP) in July 2008 as a central sector scheme for XI Plan.

Covers 12 towns viz., Mysore, Nanjangud, KR Nagar, Hunsur, Chamarajanagar, Kollegala, Madikeri, Malavalli, Hassan, Arasikere, CR Patna, Mandya.

The intension of the project was to attain and maintain the AT&C loss level for all 12 Towns at less than 15%. The AT&C loss report are generated automatically through system at different levels of Administrative hierarchy which are getting monitored and improved on a monthly basis.

IT implementing agency along with ESCOM’s and IT consultants are working together for resolution of all major issues related to the IT modules faced by end user through a systematic IT process framework and make the project a success.

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Part-A:

Establishment of IT enabled system for achieving reliable & verifiable baseline data system. The work has been awarded to M/s. Infosys Technologies Ltd., Bengaluru as IT implementing Agency with a cost of `32.51 Crs.

Role of ITIA (Infosys):

The Part A scheme has 17 major modules followed by IT Hardware with an implementation of Data Centre (DC) and Data Recovery Centre (DR) situated at Bengaluru (DC) and Chennai (DR).

The Major modules as part of R-APDRP Scheme are

• Web Self Service

• System Security Requirement

• Management Information System

• New Connection

• Collections

• Development of Commercial DB of Consumers

• Disconnection & Dismantling

• GIS based customer indexing and asset mapping

• Identity and Access Management system

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• Billing

• GIS based integrated network analysis module

• Asset Management

• Maintenance management

• Meter Data Acquisition

• Energy Audit

• Metering

• Centralized Customer Care

All the modules are deployed on Production Server and are in use from the date of full Stack roll out for respective 12 towns. Dedicated Track leads are allotted to look in to the progress, usage and resolution of issues for all 12 towns by using IT applications.

As there are 5 ESCOM’s in Karnataka State, to make common decision BESCOM has been chosen as the Nodal office where respective Track-leads of each module co-ordinate and keep informed about the new changes and issue to be resolved and incorporated.

Status as at the end of March-2017:

All 12 Towns has been declared Go-live with Full stack application. Network connectivity and office infrastructure has been completed in all towns.

1912 Helpline number for customer complaints /services has been implemented in all ESCOM’s and are functioning to the expectations.

Provision of Online Payments of electricity bills and logging of customer services like New Connection, Name Change, Power Cuts, Power Problems, Faults etc., are made available through online portal (www.cescmysore.in/www.cescmysore.org) for all 12 towns. This would improve the facilities and quality of services provided to customers.

The Third party inspection by M/s PGCIL for CESC is completed on 15/07/2017 and reports for the same also submitted. The entire project related activities in all aspects would be completed within Sept-2017.

Part-B:

Part-B deals with regular distribution system strengthening & up gradation Projects. The focus for Part-B shall be loss reduction on sustainable basis. Projects Cost: ` 221.10 Crs. The Activities covered is as follows:

 Strengthening of electrical distribution network

 Replacement of Single phase electro-mechanical by electro-static consumer meters.

 Replacement of Three phase electro-mechanical by electro-static consumer meters.

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Status as at the end of March-2017:

In all towns consumer meter replacement works have been completed and strengthening of electrical distribution work is completed in 10 towns (Nanjangud, KR Nagar, Hunsur, Mandya, Malavalli, Chamarajanagar, Kollegala, Hassan, Arasikere and CR Patna). The work of Strengthening of electrical distribution network in 2 towns (Mysore and Madikeri) were short closed due to non-completion by the agencies, the balance works were retendered and work awards was issued. The works are under progress and the work will be completed within Sept-2017.

4. Rajiv Gandhi Grameena Vidyuth Yojane - XII Plan (RGGVY-XII):

RGGVY 12th plan is being implemented in CESC with scope of work to complete spillover works of projects sanctioned in X & XI Plan. Electrification of un-electrified / partially electrified habitations of population 100 & above associated with main villages which are not covered under RGGVY X & XI Plan.

Access to electricity to all Households (including BPL Households) in the above Villages / Habitations.

Out of 5 districts in CESC, RGGVY works sanctioned under 12th plan to Mysuru Mandya district are awarded & works are under progress. RGGVY works in other 3 districts of Hassan Chamarajanagar and Kodagu districts are not sanctioned by MOP.

District Mysuru Mandya

Sanctioned Cost ` 18.84 Crs ` 12.48 Crs

Habitations covered 1624 Nos. 1610 Nos.

Status as at the end of March-2017:

For Mysuru district works, LOA is issued on 15.11.2014 and DWA is issued on 29.12.2014 to L1 bidder M/S Shreeshwar Electricals Private Ltd., Dharwad. Work is under progress.

2339 BPL House Holds are electrified out of 25,098 BPL HHs in Mysuru and Mandya districts.

Time Schedule for completion of the Projects is 24 Months from the date of LOA. Further extention of time period to complete the works is given upto Sept-2017 by M/s REC.

5. DTC Thread through Metering:

For Energy Audit purpose the tenders were invited for 14000 nos. of Supply, Installation, Commissioning and Maintenance of Composite Thread through Type Meter of Class 1.0 having AMR compliant with associated CT’s, Modem and other materials for DTC metering works under competitive bidding on Supply, Erection and 5 years of Maintenance

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12th Annual Report 2016-17 basis for Mysore City Circle, O&M Circle Mysore, Mandya and Hassan on par with BESCOM.

Further, after processing of tenders M/s Asian Fab Tech Limited, Bengaluru-58 in joint venture with M/s. Secure Meters is selected as L1 bidder and Detailed work awards were issued on 23.02.2015.

Sl No. Circle Completion period No. of meters Total cost in `

1 O&M, Hassan 9 months 7000 31,95,65,560

2 O&M, Mandya 6 months 1500 6,84,82,870

3 O&M, Mysore 9 months 3500 15,97,85,237

4 Works, Mysore 9 months 2000 9,13,11,534

Total 14000 63,91,45,201

Status as at the end of March-2017:

14000 Nos. of Thread through meters are supplied. work is completed in 2 circles. Work is under progress in remaining 2 circles.

6. Shifting of consumer meters from inside to outside the premises and fixing of SMC Box

Work has been awarded for Supply, installation, and commissioning of SMC Boxes by Shifting of existing Single Phase Energy meter position from inside to outside the consumer premises & to accessible point outside the premises with facilitating SMC Box with meter & accessories in RSD-1 & RSD-2, Hassan on total turnkey basis to M/s. RMC Switchgear Limited, Jaipur- 17, Completion period : 4 months (upto 26.06.2015).

Activity-1: Supply, installation and commissioning of 33,400 Metering Box, Shifting of existing single phase Energy meter from inside to outside the premises and facilitating the SMC Box to the meter at accessible point for easy meter reading.

Activity-2: Supply, installation and commissioning of 30,615 Metering Box, facilitating the SMC Box to the existing single phase Energy meters at outside the premises.

Status as at the end of March-2017:

Activity-1 Activity-2 Total

33400 22598 55998

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II. NEW WORKS TAKEN-UP:

1. De-centralized Distributed Generation (DDG):

Ministry of power, Government of India has formulated decentralized Distributed Generation (DDG) under DDUGJY ( Erstwhile scheme under XII plan RGGVY scheme) for providing electricity to remote villages / habitations coming under forest area where electricity grid connectivity is not feasible and cost effective.

The object of this scheme is to provide house lighting, street lights and drinking water supply connections through solar power plants for attaining goal of providing access to electricity to all households as per National Electricity policy. CESC has identified and prepared DPR for Off Grid Electrification of 66 un-electrified habitations including 6 UE Villages covering 2772 BPL Households.

REC earlier Sanctioned Amount : ` 12.61 Crores

REC Revised Sanctioned Amount : ` 19.62 Crores

Project cost awarded : ` 20.74 Crores

25 nos. projects for electrification of 29 hamlets based on Solar PV technology:

Sl. Total District Taluk BPL HH Street lights No. Hamlets

1 Madikeri Virajpete 7 357 105

2 Mysore HD Kote-Periyapatna 11 480 149

3 Chamarajanagar Chamarajanagar 3 156 35

4 Chamarajanagar Kollegala 8 546 155

Total 29 1539 444

Status as at the end of March-2017:

First Phase

Under this 29 habitations including 04 Nos. of UE villages through Off-Grid (Micro grid) PV Solar System covering 1539 BPL Households were awarded in 4 packages on M/s Navya Technologies, Mumbai and M/s Sunedison, Chennai for ` 20.74 Crores on 16.11.2015 and 02.01.2016 for a time line of 12 Months.

Four Nos of Hamlets commissioned covering 197 HHs and work is under progress in one UE village and 3 hamlets and for remaining 21 hamlets forest clearance from additional Director General of Forest (Wild life) Ministry of Environment & forest, Wildlife Division New Delhi from under secretary to Government, Forest, Ecology and Environment Department on 24.08.2016.

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12 Nos of Habitations (including 2 UE villages) covering 829 HHs were sanctioned by MoP, REC, which were awarded to M/s Deepa Solar System Pvt. Bangalore for ` 6.99 Crores on 21.01.2017 with time line of 4 months including 25 Hamlets covering 404 Hamlets (Proposed yet to be sanctioned by REC) through Stand Alone Solar PV Module Rooftop System.

Two Nos of UE Villages are completed and commissioned electrifying 13 HHs. 2. Integrated Power Development Scheme (IPDS) Integrated Power Development Scheme (IPDS) is being implemented in Mysore, Chamarajanagar-Kodagu, Mandya and Hassan circles covering total 33 statutory Towns in the jurisdiction of CESC. The main objectives of the project are;

i. Providing reliable and quality power supply in an efficient manner in urban areas. ii. Efficient management of Distribution sector in urban areas. iii. AT & C loss reduction as per trajectory finalized by MOP.

iv. Ministry of Power, GOI has sanctioned the IPDS works vide Ltr No: 26/1/2014- APDRP Dtd: 03.12.2014 under Central Government Scheme, DPR cost of `170.03 Crores.

Approved DPR Cost: ` 170.03 Crores covering 33 towns viz., Mysuru, Nanjangud, T.Narasipura, Bannur, Hunsur, K.R.Nagara, Periyapatna, H.D.Kote, Saraguru, Chamarajanagara, Kollegala, Gundlupet, Hanuru, Yalanduru, Madikeri, Somavarapet, Virajpet, Kushalnagar, Mandya, Maddur, Malavalli, Pandavapura, Srirangapatna, Krishnarajpet, Nagamangala, Hassan, Arsikere, Channarayapatna, Alur, Belur, S.K. Pura, H.N. Pura & Arakalagud.

Status as at the end of March-2017: The Detailed Work Awards (DWA) are issued for three circles for execution of works except metering activities. For metering activity tender is invited and will be awarded after approval of Board. The details of DWA issued for strengthening of distribution system are as follows

Contractor Name for DWA No.: DWA Amount Circle DWA date strengthening works IPDS in ` Crores M/s Sangamitra constructions, Mysuru 1 & 2 13.02.2017 35.74 AP M/s Skilltech Engineers & Mandya 5 & 6 09.03.2017 37.94 Contractors Pvt Ltd., Mysore M/s Pavani Controls & Panels Hassan 3 & 4 28.02.2017 28.52 Ltd., Hyderabad Total 102.20

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Detailed Work Award for Chamarajanagar-Kodagu circle amounting to ` 39.08 Crores will be issued after declaration of bi-election results.

Further to this works of providing solar roof top on Government buildings under IPDS is awarded as detailed below;

Contractor Name for DWA Amount Circle DWA No.: DWA date strengthening works in ` Crores

Mysuru M/s Naviya Technologies, Mumbai CYS-1367 09.03.2017 15.14

3. Deen Dayal Upadyay Grameena Jyothi Yojane (DDUGJY):

Govt. of India has launched Deen Dayal Upadyay Grameena Jyothi Yojane for the rural areas with the following activities :

 Separation of agriculture and non-agriculture feeders.

 Strengthening and augmentation of sub-transmission and distribution.

 Metering

 Rural electrification (including SAGY- Sansad Adarsh Grameena Yojana)

As per guidelines issued by Ministry of Power, Government of India Need Assessment Document (NAD) was submitted to M/s REC through Energy Department Government of Karnataka. NAD are given for 5 districts of Mysuru, Mandya, Chamarajanagar, Kodagu & Hassan amounting to ` 2859 Crores. Subsequently, DPR’s were submitted for ` 567.26 crores, out of which project cost is sanctioned for ` 278.89 Crores.

The details of District wise and activity wise amount is as detailed below:

(` in Cr.)

Access Feeder System Total PMA Total cost District SAGY Metering to RHHs Separation Strengthening cost charges including PMA

Mysuru 2.83 3.30 27.59 0.71 25.50 59.93 0.30 60.23

Kodagu 0.00 6.00 5.62 1.00 3.50 16.12 0.08 16.20

Chamaraja 0.00 6.00 20.55 1.01 22.28 49.84 0.25 50.09 Nagar

Mandya 0.00 3.25 44.51 0.75 34.48 82.99 0.41 83.40

Hassan 0.59 10.96 25.07 2.59 30.80 70.01 0.35 70.36

Total 3.42 29.51 123.34 6.06 116.56 278.89 1.39 280.29

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The details of work proposed under SAGY is as detailed below:

Amount required Name of Hon’ble Name of SAGY MP No. of for Electrification Member of Gram Panchayat Constituency villages works in SAGY Parliament selected by MP villages in ` lakhs

Mysuru & Kodagu Sri.Pratap Simha Karimuddanahally 11 83.66

Chamarajanagar Sri.R.Dhruvanarayan DB Kuppe 27 199.77

Chennangihalli Hassan Sri.HD Devegowda 30 59.04 & Kabballi

Total 68 342.47

Status as at the end of March-2017:

The Detailed Work Awards (DWA) are issued for execution of works except metering activities. For metering activity tender is invited and will be awarded after approval of Board.

The details of DWA issued are as follows:

DWA No.: DWA Amount District Contractor Name DWA date DDUGJY in ` Crores

Mysuru M/s Bajaj Electricals Ltd., Mumbai 01 & 02 13.02.2017 38.89

Kodagu M/s TV Subbaiah, Hubli 09 & 10 13.03.2017 13.89

Chamaraj M/s Pavani Controls & Panels Ltd., 03 & 04 28.02.2017 29.20 Nagar Hyderabad

M/s Skilltech Engineers & Mandya 07 & 08 09.03.2017 58.55 Contractors Pvt Ltd., Mysore

Hassan M/s Bajaj Electricals Ltd., Mumbai 05 & 06 02.03.2017 41.18

Total 181.71

Vigilance activities:

i) CESC Vigilance Police Stations are located at Mysore, Mandya, Chamarajanagar, Hassan and Madikeri. Superintendent of Police is incharge of police wing and Executive Engineer (El) is leading the Technical wing of the Vigilance. The activities of the vigilance wing are as follows.

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12th Annual Report 2016-17

ii) During the financial year 2016-17 the Vigilance Wing had achieved the following performance:-

Sl.No. Particulars 2016-17 2015-16

1 No. of Installations inspected 8979 19440

2 No of Cognizable cases booked 715 862

3 BBC raised in Cognizable cases in ` lakhs 111.64 157.73

4 BBC collected in Cognizable cases in ` lakhs (including 96.57 141.51 opening balance)

5 Balance (3-4) 15.07 16.22

6 Compounding Charges levied in ` lakhs 29.45 52.69

7 Compounding charges collected in ` lakhs 27.86 48.85

8 Balance (6-7) 1.59 3.84

9 No of miscellaneous cases booked 337 33

10 BBC raised in Miscellaneous cases in ` lakhs 360.12 10.83

11 BBC collected in Misc. Cases in ` lakhs 147.82 1.09

12 Balance (10-11) 212.29 9.74

13 Total BBC raised in Cognizable, Miscellaneous & 501.21 221.26 Compounding levied in ` lakhs

14 Total BBC collected in Cognizable, Miscellaneous & 272.25 191.45 Compounding in ` lakhs

15 Units pilfered in Cognizable cases 1064482 1532501

16 Units pilfered in Miscellaneous cases 3249706 74982

Mass raids / Surprise raids are being conducted at various places in the jurisdiction of CESC in consultation with the Circle / Division level field Officers. However, as per Electricity Act, 2003 there is an ambiguity in respect of registering theft cases by vigilance wing. This issue is being pursued with Government.

Vendor approval:

The approval issued to those who are manufacturing electrical materials/equipments as per IS/CESC specification. To ensure the quality of the materials supplied to CESC, it is necessary to ascertain the worthiness of the suppliers. To bring in more transparency, expertise and quality, the vendor analysis/assessment and inspection has been

30 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

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entrusted to CPRI, Bangalore. Total 125 firms got vendor approval from CESC. Approved vendor list is made available in CESC web site www.cescmysore.org

Details of Power Purchase Agreements from Renewable Energy Generators

CESC Mysore was having 96 power purchase agreement with Renewable Energy Generators at the end of year 2015-16.

The total power purchase agreement with Renewable Energy Generators at the end of year 2016-17 is as given below;

As on 31.3.2017 As on 31.3.2016 PPAs Remarks Nos MW Nos MW Wind 51 121.25 51 121.25 Mini Hydel 20 122.50 20 122.50 01 to be commissioned Cogen 4 65.22 03 47.22 02 to be commissioned Cogen (Medium Term) 27 53.21 - - Biomass 2 15.6 03 17.60 01 Terminated 09 To be commissioned Solar PV 16 233 07 88.00 01 case pending in APTEL Agricultural Land 12 27 12 27 5 to be commissioned Owners Solar Projects

Further, 120 number of Solar Roof Top projects are commissioned during 2016-17 with a Cumulative Capacity of 3.76 MW & Net export of 1.432 MU to CESC during 16-17.

CESC Mysore has been allotted 11.6% of Solar power from 2000 MW Pavagada Solar Park & 11.06% from 970 MW solar projects under VGF scheme.

CESC Mysore has to fulfill renewable power purchase obligation as per KERC orders. The details of the obligations fulfilled by CESC Mysore is as follows;

Non Solar RPO

Sl No Particulars FY 16-17 FY 15-16

1 Total Power Purchase Quantum in MU 7544.85 6444.86

Non Solar Renewable Energy Purchased under 2 406.724 457.55 PPA in MU

Non Solar renewable energy purchased under 3 72.388 266.18 Short term / Medium term in MU

4 Solar energy purchased in excess of RPO 1.677 -

5 Non Solar RPO Complied in % 6.37% 11.23%

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Sl No Particulars FY 16-17 FY 15-16 (Out of 11%) (Out of 10%)

Solar RPO

Sl No Particulars FY 16-17 FY 15-16 1 Total Power Purchase Quantum in MU 7544.85 6444.86 Solar Renewable Energy Purchased under PPA in 2 56.831 25.26 MU 3 Solar energy from SRTPV installations. 1.432 0.04 0.772% 0.39% 4 Solar RPO Complie d in % (out of 0.75%) (out of 0.25%) Solar renewable energy purchased under PPA in 5 MU & SRTPV solar energy restricted to RPO 56.586 - requirement Solar energy purchased in excess of RPO 6 1.677 - considered for Non-Solar RPO

Accidents for the year 2016-17

Sl. Departmental Non-Departmental Name of the Division Animal No. Fatal Non-Fatal Fatal Non-Fatal MYSORE O&M CIRCLE 1 N.R.Mohalla 0 3 4 0 2 2 V.V.Mohalla 0 1 0 0 1 3 Nanjangudu 0 1 4 0 3 4 Hunsur 1 1 5 2 9 Circle Total 1 6 13 2 15 CHAMRAJNAGARA & KODAGU CIRCLE 5 Chamarajanagar 0 1 4 0 4 6 Kollegala 0 0 4 0 2 7 Madikeri 0 2 8 4 11 Circle Total 0 3 16 4 17 HASSAN CIRCLE 8 Hassan 0 2 3 2 16 9 Sakleshpura 0 0 2 3 0

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Sl. Departmental Non-Departmental Name of the Division Animal No. Fatal Non-Fatal Fatal Non-Fatal 10 C.R. Patana 0 0 0 0 0 11 Arsikere 0 0 1 1 2 12 Holenarasipura 0 3 2 1 6 Circle Total 0 5 8 7 24 MANDYA CIRCLE 13 Mandya 2 0 4 1 0 14 Maddur 0 1 5 1 4 15 Pandavapura 0 1 7 0 3 16 Nagamangala 0 0 1 0 0 Circle Total 2 2 17 2 7 GRAND TOTAL 3 16 54 15 63

CORPORATE GOVERNANCE

The Board of CESC believes and supports Corporate Governance practices of a high standard, ensuring observance of these principles in all its dealings. All the Directors take active part in the proceedings of Board and Sub-Committee meetings which add value in the decision making process. The non functional directors receive sitting fees for Board / Sub-committee meetings attended by them.

a) The meetings of the Board of Directors are scheduled in advance for which notice is given to each Director in writing. The agenda and other relevant notes are circulated to the Directors in advance.

Following are the Directors / KMP’s of CESC as on the date of AGM:

1. Sri. Dr. Rajaneesh Goel IAS Chairman

2. Sri. D. Kiran, IRS Managing Director

3. Sri. K.T. Mahanthappa Director Technical

4. Sri. S. Ziyaullah IAS Director

5. Sri. D. Randeep IAS Director

6. Sri. Pavankumar Malapati IAS Director

7. Sri. H. Nagesh Director

8. Sri. T.R. Ramakrishnaiah Director

9. Kum. Charulatha Somal IAS Director

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12th Annual Report 2016-17

10. Sri. M. Pratap Director

11. Sri. A. N. Jayaraj Director

12. Sri. Arif khan Director

13. Sri. D. Siddaraju Director

14. Sri. D. Gopal Director

15. Sri. Huchegowda Director

16. Sri. Swamygowda Director

17. Smt. Latha Jayanna Director

18. Smt. B.K. Chandra kala Director

19. Sri. Madanamurali Director

20. Sri. C.K. Suresh Director

21. Sri. A. Shivanna Chief Financial Officer

22. Sri. K. T. Hiriyanna, FCS, Authorised signatory Convener

During 2016-17, 6 Board meetings took place as detailed below:

Sl.No Meeting No. Held on

1 57th 04.07.2016

2 58th 16.07.2016

3 59th 20.08.2016

4 60th 17.09.2016

5 61st 26.09.2016

6 62nd 17.01.2017

b) Board Sub Committees

The Sub-Committees of the Board were constituted to give more focused attention on important issues.

1. Purchase Committee

Purchase Committee was formed to consider all cases of purchases whether for Projects or award of Station / Line works or any other works and all matters relating to such purchases as per prevailing delegation of financial powers.

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The composition of the purchase committee as on date of AGM is as below

1 Sri. D. Kiran, IRS, Managing Director Chairman 2 Sri. K.T. Mahanthappa, Director (Technical) Member 3 Sri. M. Pratap, Director Member Member 4 Sri. K. T. Hiriyanna, FCS, Authorised signatory Convener During 2016-17, 6 Purchase Committee took place as detailed below:

Sl.No Meeting No. Held on

1 77th 06.04.2016

2 78th 08.07.2016

3 79th 27.08.2016

4 80th 14.11.2016

5 81st 23.12.2016

6 82nd 04.03.2017

2. Audit Committee

The composition of the Audit committee as on date of AGM is as below

1 Sri. H. Nagesh Chairman

2 Sri. K.T. Mahanthappa Member

3 Sri. Pavankumar Malapati IAS Member

4 Sri. M. Pratap Member

5 Sri. K. T. Hiriyanna,FCS, Authorised signatory Convener

Audit Committee considers and recommends the financial results to the Board. Statutory Auditors are invited to attend the meeting. The committee also invites the Chief Financial Officer and Chief General Manager (I/A) to be present at the meeting.

Audit Committee has adequate powers and terms of reference to play an effective role as mentioned in Companies Act which includes:

1. Discussions with the Auditors periodically about Internal Control System and the scope of audit including observations of the Auditors.

2. Review of the Annual Financial statements before submission to the Board.

3. Ensure compliance of internal control systems.

4. Investigation into any of the matters as may be referred to by the Board.

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12th Annual Report 2016-17

5. Financial and Risk Management Policies and Fraud and Fraudulent Risks.

6. Review of annual capital, revenue and store budgets before being placed before the Board for approval.

7. Review of programmes of finalization of annual accounts for timely completion of audit and approvals.

8. Review of adequacy of internal controls to review reports on inventory, completion reports of capital works, standards and specifications wherever applicable.

9. Review of Internal Audit paras.

10. Review of AG Audit paras.

11. Review of disciplinary cases.

12. Review of Vigilance activities, MRT, TAQC Wings and write offs.

13. Review of power purchase costs.

14. Review of borrowings.

15. Discussions with Statutory Auditors and cost Auditors regarding their reports.

16. Any other matters as may be referred to by the Board.

During 2016-17, Audit Committee took place as detailed below:

Sl.No Meeting No. Held on

1. 15th 08.07.2016

2. 16th 17.01.2017

3. CSR Committee:

Corporate Social Responsibility Committee has been formed in accordance with section 135 of the Companies Act 2013 and the Companies (Corporate social Responsibility) Rules, 2014 notified by the Ministry of Corporate Affairs, Government of India.

The composition of the CSR committee as on date of AGM is as below

1 Sri. H. Nagesh Chairman

2 Sri. K.T Mahanthappa Member

4 Sri. M. Pratap Member

5 Sri. K. T. Hiriyanna, FCS, Authorised signatory Convener

36 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

12th Annual Report 2016-17

Personnel Details

A. The working strength of the employees as on 31.03.2017 is placed category-wise as under:-

Total working strength of employees Cadres as on 31.03.2017 S W V

A-Grade (Regular Employees) 252 231 21

A-Grade (Deputation Employees) 16 11 5

A-Total 268 242 26

B-Grade (Regular Employees) 272 201 71

B-Grade (Deputation Employees) - - -

B-Total 272 201 71

C-Grade (Regular Employees) 3312 1997 1315

C-Grade (Deputation Employees) 41 34 7

C-Total 3353 2031 1322

D-Grade (Regular Employees) 6532 3018 3514

Company Total 10425 5492 4933

B. Training and Development Programmes during the year 2016-17

To inculcate the requisite work-culture and to develop the orientation and skill essential for today’s advancing technology and operating environment, sufficient and constant both external and internal training programmes are being imparted to the rank and file employees of the Company.

a) Also training on Tax, Safety, Laws and customer relationship etc., have been given to the employees for the enrichment of their knowledge and betterment of their attitudes and behavior.

b) During the year 2016-17 the company has organized several Internal Training Programmes and deputed the regular working staff of the Company to various external training programme.

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The details of Training Programmes for FY 2016-17

Internal Training Programme

Sl No Cadre Nos ` in lakhs

1 Engineers 31

2 Accounts 2 4.91

3 C&D Employees 375

REC Training Programme for C & D employees (reimbursed by REC) 2553 25.91

Total Training expenditure 41.37

No. of participants 3090

Training Man hours 399.40

Training Man days 3615

Expenditure per participants per day (in `) 1338.00

C. National Training Programme for C&D Employees during FY 2016-17

REC-CESC have jointly sponsored 45 batches of training Programme under Variant 01 to 07 for the year 2016-17 to the C&D employees of CESC.

Communication Activities:

1. Instruction given to MCC for providing timer switches for street light and requested to arrange for switching ON & OFF the street light at 6.30 PM to 5.30 AM of close to darkness & close to day light whichever is later. And to restrict the excess usage of power to sign boards, hoardings, parks etc.

2. Action has been taken to give wide publicity for Govt. Schemes like regularization of unauthorized pumpsets through newspapers, pamphlets, banners, broachers etc.

3. Consumer Grievance Meetings, Janasamparka Sabhas have been conducted in all the sub-divisions to solve the public grievances.

4. Soujanya Counters have been opened in all the sub-divisions to resolve the problems of consumers.

5. Vidyut Adalath is being regularly conducted under the Chairmanship of Deputy Commissioners.

6. Mass awareness programme is being conducted to pay the arrears regularly and allow fixing the meter to Bhagyajyothi and Irrigation Pumpset categories on electricity.

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7. Regular meetings with MPs & MLAs have been convened to solve public grievances.

8. In the Company’s website energy consumption details are made available.

9. CESC has launched official website www.cescmysore.org on 15.08.2011 where consumer can view all the information about the organization which provides Tariff details, profile, statistics, ongoing projects tenders details, News & events, all employees contact details along with following facility.

a. Consumer can register online complaint through feedback forms and resolve the issues with respect to power supply interruption.

b. Can know the daily load availability and status of power supply & consumption.

c. Other services like safety measures, consumption calculator.

10. CESC has provided ATP(Any time payment) facility to pay bill through ATP any time in a day/ Any where payment facility through ATP has aslo been introduced.

11. Customer chart showing details regarding payment details for availing power supply under different tariff is available on website.

12. Applications for availing power supply under different category are available on website.

13. CESC Customer care center launched under RAPDRP project where consumers can call Contact Number 1912 to register their Electricity related complaints. IVRS facility provided for consumers to know their complaint status etc. Full fledged Staff & man power provided along 15 PC’, IP Phones & Server. Etc to resolve the complaints within the stipulated time.

Particulars are as per Companies (particulars of employees) Rules, 1975 and as amended:

None of the employees of the Company was in receipt of remuneration amounting to ` 60,00,000/- and above per annum or at the rate of ` 5,00,000/- and above per month during the financial year under review.

Auditors:

The Comptroller & Auditor General of India had appointed M/s Ganesan & Co., Chartered Accountants, Bangalore as Statutory Auditors for the financial year 2016-17. The audit team visited all accounting units, verified the records, obtained explanations and finalized the audit work. Their report is enclosed and an addendum containing management reply to their observation forms part of this report.

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12th Annual Report 2016-17

M/s N.S and Associates, Cost Accountants, Bangalore are the Cost Auditors appointed for conducting cost audit for the Financial year 2016-17.

M/s TSDJ & Associates are appointed for conducting secretarial audit for FY16-17. Their report is also enclosed.

Review by the Comptroller & Auditor General

Comments on working results of the Corporation by the Comptroller and Auditor General of India, forming part of this is appended to the annual report.

Directors’ Responsibility Statement:

Pursuant to Section 134(3)(c) of the Companies Act, 2013, the Directors wish to state that to the best of their knowledge:

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

ii) Accounting policies have been selected and applied 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 Corporation at the end of the financial year and of the profit or loss of the Corporation for that period;

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

iv) Annual accounts have been prepared for the financial year ended March 31, 2017 on a going concern basis.

v) Internal controls have been laid down to be followed by the Corporation and such internal controls are adequate and were operating effectively.

vi) Systems to ensure compliance with the provisions of all applicable laws are in place and were adequate and operating effectively.

GENERAL

The Board would like to place on record its appreciation of:

 The Government of Karnataka, the Government of India, Central Electricity Authority, Comptroller &Auditor General of India, Karnataka Electricity Regulatory Commission, Central Electricity Regulatory Commission for their assistance, guidance and co-operation.

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 Financing agencies such as Rural Electrification Corporation, Power Finance Corporation, and Syndicate Bank, State Bank of Mysore, Canara Bank and other Commercial Banks for their financial support.

 The media for publicity and creating awareness among public.

 The statutory/cost/secretarial auditors for their guidance and support.

 All the agencies associated with the computerization of billing.

 Employees’ Unions and Associations for their co-operation and collective participation.

The Board also would like to place on record its appreciation of the dedicated services rendered by the employees of the Corporation.

Sd/- (Dr. Rajaneesh Goel) Chairman

Date : 21.09.2017

Place: Mysuru

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12th Annual Report 2016-17

INFORMATION PURSUANT TO THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 FORM B

I) Research and Development (R&D)

Expenditure on R&D .. NIL

II) Energy conservation, technology absorption, adaptation and innovation

Not applicable.

In case of imported technology (imported during the last five years reckoned from the beginning of the financial year), following information may be furnished:

 Technology imported .. NIL

 Year of import .. Does not arise

 Has the technology been fully absorbed .. Does not arise

 If not fully absorbed, areas where this has .. Does not arise Not taken place, reasons therefore and Future plan of action

III) Foreign Exchange:

a) Foreign exchange earnings ... Nil

b) Foreign exchange outgo ... Nil

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ADDENDUM TO DIRECTOR’S REPORT

Management replies to the observations / comments of

A) The statutory Auditors on the accounts

B) Secretarial Auditors on compliances of the applicable statutory provisions of company for the year 2016-17 are as follows:

Sl.No Observations of Statutory Auditors Reply of the Management

a) Non-compliance of Accounting Standard 2 on Inventories: Inventories are valued at cost or Standard AS-2 has been implemented from rate. In respect of certain items of 1st April, 2016 and onwards inventories carried since the close of the i) Value of materials which previous year, standard rate has been constitute the Opening Balance for adopted and in respect of receipts during 2016-17 (i.e., as on 1st April, the year weighted average of the opening 2016) will be retained at the value standard rate and current year cost of such existed in the books of Accounts inventories has been applied. The effect of as at the end of 31/03/2016. the above result in misstatement in the ii) According to modified Accounting valuation of inventories carried in the Policy, all Materials at the time of balance sheet and the consequential effect purchase are to be valued at in the Statement of Profit and Loss account Purchase cost instead of Standard is not ascertainable. Rates prescribed in Schedule of

Rates Book. iii) Material issues are to be valued at Weighted Average Rate applicable to the closing stock before such issue. Upto March-2016 inventories are valued at standard rates and the difference between the purchase price and standard rates are booked under Material cost variance account. From 01.04.2016 no amount is booked under material cost variance A/c due to implementation of AS-2. Hence consequential effect in the Statement of Profit and Loss account is not ascertainable.

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Sl.No Observations of Statutory Auditors Reply of the Management

b) Non-compliance of Accounting Standard 10 on Property, Plant and Equipment and Accounting Standard 16 Accounting

for Borrowing Costs:

(i) Substantial delays (spanning even more Instruction have been issued to than one accounting period) in accounting units that there should be capitalization and non-capitalization of no delay in capitalization of assets assets put to use included in capital (i.e. Assets put to use). work in progress have been observed. These result in understatement of fixed assets and depreciation charged.

(ii) Depreciation on any adjustments to the Company is following the same historical cost of the fixed assets is not procedure since inception. charged prospectively over the residual

life of the asset and is charged prospectively considering as though such adjustments are new assets.

(iii) In respect of assets retired from active The facts will be submitted to expert use and in respect of faulty / dismantled committee and after obtaining their assets which are capable of being suggestions/comments; necessary reconditioned and reusable in the near action will be taken accordingly. future, the Company derecognises such items from the fixed assets at their

carrying cost and classifies them as

other current assets under the head ‘written down value of Faulty / Dismantled assets’ till such assets are classified as held for disposal as scrap or for reuse. In the absence of an updated fixed assets register containing details relating to cost, accumulated depreciation and carrying amount of the individual assets, it is observed that there is no uniformity in determining the carrying amount of an asset retired from active use. When such assets are reused, the reconditioned assets are capitalized again at the carrying cost of

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Sl.No Observations of Statutory Auditors Reply of the Management the original asset at which they were transferred to other current assets initially. Further, depreciation has not been charged on such assets since derecognition and until capitalized again. This method is not in line with the accounting standard AS 10 and results in misstatement of carrying amount of fixed assets and depreciation charge for the capitalization of the asset for the second and subsequent time, considering the policy of charging depreciation on SLM basis and non-charging of appropriate depreciation on ‘written down value of Faulty / Dismantled assets’ .

(iv) Application of standard rates instead of Value of materials which constitute cost for the materials held in stock as the Opening Balance for 2016-17 on 01.04.2016 and capitalized in project (i.e., as on 1st April, 2016) will be assets. retained at the value existed in the books of Accounts as at the end of 31/03/2016.

(v) Due to undue delay in capitalization of Necessary action will be taken during project assets spanning over several FY18. financial years for want of completion certificates, the interest that had been capitalized and held under capital work in progress in earlier years towards borrowing cost on qualifying assets for the period beyond their actual date of commissioning had not been charged to revenue by reversing from Capital work in progress resulting in misstatement of carrying amount of fixed assets, depreciation charge and finance costs.

(vi) The cumulative effect of the above on depreciation charged and carrying Factual. amount of fixed assets / current assets

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Sl.No Observations of Statutory Auditors Reply of the Management and current liabilities in the financial statements is presently not quantifiable.

c) Non-compliance of Accounting Standard 12 on Accounting for Government grants: Factual. In the absence of the date of capitalization

of respective individual assets for which capital grants had been utilized, the company has estimated and accounted “Depreciation withdrawn from contribution / subsidies as per AS-12” under “miscellaneous receipts” in the statement of Profit and Loss account over the useful life of such assets without considering the quantum of unutilized grants and hence we are unable to comment on the appropriateness of such amount recognized and the balance of such deferred grants under reserves and surplus.

d) Non-compliance of Accounting Standard 15 on Retirement Benefits: Non-provision for liability on leave Factual. encashment benefits and family benefit

fund based on actuarial valuation. The impact of the above on the financial statements is presently not quantifiable.

e) Non-compliance of Accounting Standard 22 on Accounting for Taxes on Income: Recognizing deferred tax liabilities on the Provision has been made only on the tax effect of timing difference of timing difference of Depreciation, as depreciation alone and without considering advised by Company’s Income Tax timing differences relating to accumulated consultant and it is brought out in losses and other differences is not in Note No. 5.2 of Annual Accounts. consonance with the accounting standards.

The impact of the above on the financial

statements is presently not quantifiable.

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Sl.No Observations of Statutory Auditors Reply of the Management

f) Non-compliance of Accounting Standard 28 on Impairment of Asset: The Company has not assessed at the Factual Balance Sheet date the existence of impairment, if any, of its assets, including assets retired from active use and assets scrapped and consequently we are unable to comment on the existence of impairment loss.

g) The cumulative effect of the non- Factual compliance of the above and other qualifications in the para below on the Earnings per share vide Accounting standard 20 is not quantifiable since adequate information is not presently available with the Company to quantify the financial impact on non-compliance of these Accounting Standards.

Further to the above,

a. The company had not accounted Factual. interest payable on KPCL outstanding amounting to `275.65 crores which was hitherto accounted upto 31.03.2014 as referred in Note No. 34.9.2 to the notes to the accounts, which is not in accordance with the generally accepted accounting practice.

b. Interest on power supply for IP The matter has already been brought consumers (10 HP & below) have to the notice of Government of remained unrecovered from the Karnataka regarding the dues from IP Government and an amount of `371.97 consumers outstanding as on crores is due as on 31.03.2017. The 31.07.2008 which has remained Company had not charged interest unrecovered. Until the final decision during the year. Recoverability of of GOK regarding the clearance of the outstanding interest charged and lying in said dues the same will be continued the IP sets consumers account under under trade receivables. receivables is doubtful of recovery.

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Sl.No Observations of Statutory Auditors Reply of the Management Accordingly the trade receivable is overstated and the profit is overstated to the effect of `371.97crores.

c. Accounting for accessories / The procedure is followed since components items forming part of the inception. During FY15-16 onwards released transformers, i.e., oil and coil the procedure of buy-back system is items (based on schedule of rates) under introduced the question of accounting other current assets and correspondingly for accessories/components will not crediting the miscellaneous receipts arise. account at the time of withdrawal from the fixed assets instead of the carrying amount of the released asset is not in consonance with the generally accepted accounting principles, resulting in overstatement of current assets and overstatement of profits.

d. Balances in trade receivables, trade Schedule is being maintained at all payables, sundry creditors, dues of accounting units. Action has been KPCL and other ESCOMs, deposit taken to clear the old balances by accounts, loans and advances are reviewing each item at the accounting subject to confirmation / reconciliation. unit. The effect of adjustments to be recognised on such reconciliation is presently not ascertainable.

e. Reconciliation of inter unit accounts Under IUA A/c, in the opening amounting to `236.51crores (credit) balance sheet of the company itself shown under Other Current Liabilities is `224.77 crores has been transferred under progress.The effect of from MESCOM under IUA head. The adjustments in the financial statements matter has been taken up with on account of non-reconciliation of inter MESCOM and GOK. This balance unit account is presently not has to be adjusted only by ascertainable / quantifiable. restructuring the opening balance sheet. For remaining amount reconciliation is under process.

f. Pending reconciliation of balance of Reconciliation is under process. trade receivables as per general ledger

48 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

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Sl.No Observations of Statutory Auditors Reply of the Management and subsidiary ledger and the delay of a few days in the updation of collections in the areas covered under Restructured Accelerated Power Development & Reforms Programme (RAPDRP), we are not able to comment on the correctness of the balances and their age-wise classification.

g. Pending reconciliation of security Reconciliation is under process. deposits from customers as per general ledger and subsidiary ledger, we are not able to comment on the correctness of the interest recognised on such deposits.

h. No provision for old receivables (relating The procedure is followed since to shortage in inventories pending inception, any how the matter will be investigation) that are doubtful of examined in FY 2017-18. recovery has been made resulting in overstatement of other current assets and overstatement of profits.

i. Non-ascertainment and non-provision of wealth tax liability of the company upto Factual. 31.03.2015 resulting in overstatement of

profits.

j. Non-disclosure of capital and other Factual. commitments at the year end prescribed under Schedule III to the Companies Act, 2013.

k. The recognition and measurement of The Company is engaged in regulatory assets to the extent of operation of Supply of Electricity to uncertainty in realisability of such assets the consumers covered under its amounting to `982.44 crores which are jurisdiction. The rates are regulated not in accordance with the generally by the Honb’le Karnataka Electricity accepted accounting principles and Regulatory Commission (KERC). practices resulting in overstatement of As per section 62 of Electricity Act the assets and reserves and surplus by 2003, the CESC is filing tariff `982.44 crores and profits for the year application yearly with Regulatory by `517.99 crores. Commission for determination of

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Sl.No Observations of Statutory Auditors Reply of the Management tariff. The Regulatory Commission determines the tariff as per procedures laid in section 64 of Electricity Act 2003.The Company collects tariff from consumers as approved in the tariff order issued by the Regulatory Commission. The Honb’le KERC through its Tariff orders allow recovery of deficits in subsequent periods besides through truing up orders. In this back ground, the Company has accounted the regulatory asset of `517.99 Crs being recognition of `638.40 Crs of additional regulatory asset computed towards the provisional gap expected to be considered by KERC for recovery in subsequent years and reversal of `120.41 Crs created in FY16. Thus the regulatory Assets as on 31.03.2017 is as follows:

Non Current Asset - `982.44 crs (Previous year : `344.05 crs)

Other Current Asset- ` Nil (Previous year : `120.41 crs)

l. Through an order, The Government of The accounting treatment is given Karnataka had directed the accounting as per the orders of GOK. of receivable towards subsidy and payable towards power cost and interest payable thereon transferred from KPTCL with a net debit effect of `34.01 Cr treated as “proposed adjustment to net worth account” grouped under reserves and surplus. Further, the amount of `42.98 Cr accounted as interest payable has been written back and grouped under “Miscellaneous receipts” based on

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Sl.No Observations of Statutory Auditors Reply of the Management the said order. The accounting treatment communicated through a single order for recognition of the net liability with a corresponding effect in “proposed adjustment to net worth account” and a write back of a portion of such liability separately is not in accordance with the generally accepted accounting principles and practices.

B. Observations of Secretarial Auditors Reply of the Management

1. The Company has not amended the Articles Noted. of Association in line with the new Companies

Act, 2013; it is suggested to amend the same.

2. The Company has not appointed a Company Factual. Continuous efforts are Secretary, who is also regarded as KMP being made to appoint a company under the Companies Act, 2013. However, it secretary but suitable candidate was observed that company has made on has not applied. effort in securing the services of Practicing Company Secretary on contract basis.

Place: Mysuru Sd/- Date:26.09.2017 (Dr. Rajaneesh Goel) Chairman

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AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT

To the Members of Chamundeshwari Electricity Supply Corporation Limited

This report supersedes our original report dated 11.08.2017. Pursuant to the observations made by Comptroller and Auditor General of India under section 143(6)(a) of the Companies Act, 2013 the accounts approved by the Board of Directors on 11.08.2017 have been revised to incorporate the observations made by the Comptroller and Auditor General of India on the financial statements and books of account of the company. The impact of the revision in the accounts of the company is stated in note 36 to the accounts. Our audit procedure on events subsequent to the date of the original report is restricted solely to the amendments made vide note 36 to notes forming part of accounts.

Report on the Financial Statements

We have audited the accompanying financial statements of Chamundeshwari Electricity Supply Corporation Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2017, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing

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12th Annual Report 2016-17 standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances,. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the financial statements.

Basis for Qualified Opinion

In our opinion, the Balance Sheet, the Statement of profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 to the extent applicable subject to the following:

a) Non-compliance of Accounting Standard 2 on Inventories:

Inventories are valued at cost or Standard rate. In respect of certain items of inventories carried since the close of the pervious year, standard rate has been adopted and in respect of receipts during the year weighted average of the opening standard rate and current year cost of such inventories has been applied. The effect of the above result in misstatement in the valuation of inventories carried in the balance sheet and the consequential effect in the Statement of Profit and Loss account is not ascertainable.

b) Non-compliance of Accounting Standard 10 on Property, Plant and Equipment and Accounting Standard 16 Accounting for Borrowing Costs:

(i) Substantial delays (spanning even more than one accounting period) in capitalisation and non-capitalisation of assets put to use included in capital work

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in progress have been observed. These result in understatement of fixed assets and depreciation charged.

(ii) Depreciation on any adjustments to the historical cost of the fixed assets is not charged prospectively over the residual life of the asset and is charged prospectively considering as though such adjustments are new assets.

(iii) In respect of assets retired from active use and in respect of faulty / dismantled assets which are capable of being reconditioned and reusable in the near future, the Company derecognises such items from the fixed assets at their carrying cost and classifies them as other current assets under the head ‘written down value of Faulty / Dismantled assets’ till such assets are classified as held for disposal as scrap or for reuse. In the absence of an updated fixed assets register containing details relating to cost, accumulated depreciation and carrying amount of the individual assets, it is observed that there is no uniformity in determining the carrying amount of an asset retired from active use. When such assets are reused, the reconditioned assets are capitalized again at the carrying cost of the original asset at which they were transferred to other current assets initially. Further, depreciation has not been charged on such assets since derecognition and until capitalized again. This method is not in line with the accounting standard AS 10 and results in misstatement of carrying amount of fixed assets and depreciation charge for the capitalization of the asset for the second and subsequent time, considering the policy of charging depreciation on SLM basis and non-charging of appropriate depreciation on ‘written down value of Faulty / Dismantled assets’ .

(iv) Application of standard rates instead of cost for the materials held in stock as on 01.04.2016 and capitalized in project assets.

(v) Due to undue delay in capitalization of project assets spanning over several financial years for want of completion certificates, the interest that had been capitalized and held under capital work in progress in earlier years towards borrowing cost on qualifying assets for the period beyond their actual date of commissioning had not been charged to revenue by reversing from Capital work in progress resulting in misstatement of carrying amount of fixed assets, depreciation charge and finance costs.

(vi) The cumulative effect of the above on depreciation charged and carrying amount of fixed assets / current assets and current liabilities in the financial statements is presently not quantifiable.

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c) Non-compliance of Accounting Standard 12 on Accounting for Government grants:

In the absence of the date of capitalization of respective individual assets for which capital grants had been utilized, the company has estimated and accounted “Depreciation withdrawn from contribution / subsidies as per AS -12” under “miscellaneous receipts” in the statement of Profit and Loss account over the useful life of such assets without considering the quantum of unutilized grants and hence we are unable to comment on the appropriateness of such amount recognized and the balance of such deferred grants under reserves and surplus.

d) Non-compliance of Accounting Standard 15 on Retirement Benefits:

Non-provision for liability on leave encashment benefits and family benefit fund based on actuarial valuation. The impact of the above on the financial statements is presently not quantifiable.

e) Non-compliance of Accounting Standard 22 on Accounting for Taxes on Income:

Recognizing deferred tax liabilities on the tax effect of timing difference of depreciation alone and without considering timing differences relating to accumulated losses and other differences is not in consonance with the accounting standards. The impact of the above on the financial statements is presently not quantifiable.

f) Non-compliance of Accounting Standard 28 on Impairment of Asset:

The Company has not assessed at the Balance Sheet date the existence of impairment, if any, of its assets, including assets retired from active use and assets scrapped and consequently we are unable to comment on the existence of impairment loss.

g) The cumulative effect of the non-compliance of the above and other qualifications in the para below on the Earnings per share vide Accounting standard 20 is not quantifiable since adequate information is not presently available with the Company to quantify the financial impact on non-compliance of these Accounting Standards.

Further to the above,

a. The company had not accounted interest payable on KPCL outstanding amounting to `275.65 crores which was hitherto accounted upto 31.03.2014 as referred in Note No. 34.9.2 to the notes to the accounts, which is not in accordance with the generally accepted accounting practice.

b. Interest on power supply for IP consumers (10 HP & below) have remained unrecovered from the Government and an amount of `371.97crores is due as on 31.03.2017. The Company had not charged interest during the year. Recoverability of outstanding interest charged and lying in the IP sets consumers account under

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receivables is doubtful of recovery. Accordingly the trade receivable is overstated and the profit is overstated to the effect of `371.97crores.

c. Accounting for accessories / components items forming part of the released transformers, i.e., oil and coil items (based on schedule of rates) under other current assets and correspondingly crediting the miscellaneous receipts account at the time of withdrawal from the fixed assets instead of the carrying amount of the released asset is not in consonance with the generally accepted accounting principles, resulting in overstatement of current assets and overstatement of profits.

d. Balances in trade receivables, trade payables, sundry creditors, dues of KPCL and other ESCOMs, deposit accounts, loans and advances are subject to confirmation / reconciliation. The effect of adjustments to be recognised on such reconciliation is presently not ascertainable.

e. Reconciliation of inter unit accounts amounting to ` 236.51 crores (credit) shown under Other current Liabilities is under progress. The effect of adjustments in the financial statements on account of non-reconciliation of inter unit account is presently not ascertainable / quantifiable.

f. Pending reconciliation of balance of trade receivables as per general ledger and subsidiary ledger and the delay of a few days in the updation of collections in the areas covered under Restructured Accelerated Power Development & Reforms Programme (RAPDRP), we are not able to comment on the correctness of the balances and their age-wise classification.

g. Pending reconciliation of security deposits from customers as per general ledger and subsidiary ledger, we are not able to comment on the correctness of the interest recognised on such deposits.

h. No provision for old receivables (relating to shortage in inventories pending investigation) that are doubtful of recovery has been made resulting in overstatement of other current assets and overstatement of profits.

i. Non-ascertainment and non-provision of wealth tax liability of the company upto 31.03.2015 resulting in overstatement of profits.

j. Non-disclosure of capital and other commitments at the year end prescribed under Schedule III to the Companies Act, 2013.

k. The recognition and measurement of regulatory assets to the extent of uncertainty in realisability of such assets amounting to ` 982.44 crores which are not in accordance with the generally accepted accounting principles and practices resulting in

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overstatement of the assets and reserves and surplus by `982.44 crores and profits for the year by `517.99 crores.

l. Through an order, The Government of Karnataka had directed the accounting of receivable towards subsidy and payable towards power cost and interest payable thereon transferred from KPTCL with a net debit effect of ` 34.01 Cr treated as “proposed adjustment to net worth account” grouped under reserves and surplus. Further, the amount of ` 42.98 Cr accounted as interest payable has been written back and grouped under “Miscellaneous receipts” based on the said order. The accounting treatment communicated through a single order for recognition of the net liability with a corresponding effect in “proposed adjustment to net worth account” and a write back of a portion of such liability separately is not in accordance with the generally accepted accounting principles and practices.

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 described in the Basis for Qualified Opinion paragraph, the 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 of affairs of the Company as at 31st March, 2017, and its profits and its cash flows for the year ended on that date.

Emphasis of matter

We draw attention to the following matters explained in the Notes to the financial statements:

Title deeds of certain immovable properties are not in the name of the company – Refer Note No.13.3.5 of Notes to accounts.

Our opinion is not qualified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies Auditor’s Report Order, 2016 (“the Order”) issued by the Central Government of India in terms of sub-section 11 of Section 143 of the Act, we given in Annexure-A a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

a. We have sought and, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

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b. Except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion proper books of account as required by law have been kept by the Company;

c. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

d. Except for the matters described in the Basis for Qualified Opinion paragraph above, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2013;

e. In terms of notification issued in G.S.R. 463(E) dated 05.06.2015 under clauses (a) and (b) of sub-section (1) of Section 462 and in pursuance of sub-section (2) of the said Section of the Companies Act, 2013 (18 of 2013), the provisions of sub-section (2) of section 164 of the Act, do not apply to a Government company and accordingly the question of reporting on the disqualification of appointment of Directors does not arise;

f. The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above;

g. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in “Annexure B”;

h. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements – Refer Note No.34.9 to the Notes on Accounts;

ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. However, we are unable to obtain sufficient and appropriate audit evidence to report on whether the disclosures are

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in accordance with books of account maintained by the Company and as produced to us by the Management – Refer Note 34.9.7

3. In compliance to the directions under section 143(5), we report as hereunder:

A. Matters relating to directions:

1. According to the information and explanations provided to us, the company has not been selected for disinvestment.

2. During the year, there is waiver/write off of debts being arrears relating to long disconnected installations amounting to ` 1.12 crores in the absence of any scope for recovery, as explained to us.

3. Proper records are maintained for inventories lying with third parties by the company. According to the information and explanations given to us, the company has not received any assets as gift/grant from Government or other authorities cases.

4. The age-wise details of pending legal cases is as hereunder:

Particulars Upto 1 Year 1 Year to 3 Years More than 3 years Total

Revenue 18 4 17 39

Others 50 106 79 235

As explained to us, the proceedings of the above cases are under progress at the courts and there are no specific reasons attributable to such pendency and there exists a reasonable mechanism for ensuring effectiveness of expenditure incurred in respect of legal cases.

5. Additional Company Specific Direction:

i. Considering the size of the company and the volume of operations of the company, the system of billing and collection of revenue is considered to be reasonably efficient. Delay of a few days in the updation of collections in the areas cover under Restructured Accelerated Power Development & Reforms Programme (RAPDRP) is noticed. Tamper proof meters have not been installed for all consumers. As informed to us, for all HT lines in RAPDRP area, Automated Meter Reading (AMR) systems have been installed and in other areas, the installation of such meters is in progress and in respect of LT lines, AMRs have not been installed. The accuracy of the billing is ensured through periodic test check undertaken by HT and LT rating staff.

ii. Reconciliation of receivables / payables is being generally done periodically with generation companies having power purchase agreements with the company, distribution companies and transmission companies. The reconciliation with other

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generators has not been undertaken. The year end balances are subject to reconciliation.

iii. The Fuel and Power Purchase Adjustment Cost (FPPCA) approved by KERC has been demanded and recovered from the consumers and accounted by the company.

iv. During the year ended 31st March 2017 no tariff roll back subsidies have been allowed, as informed to us.

v. Only operations relating to billing and collection from consumers have been computerized. Adequate practices are in place for ensuring data security, as explained to us but the company does not have any formal documented IT security policy for data / software / hardware.

FOR GANESAN AND COMPANY CHARTERED ACCOUNTANTS FIRM REGN NO. 000859S

Sd/- G.HARI GOVIND PARTNER. M.NO.206563 Place : Mysuru Date : 21.09.2017

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Annexure-A to Independent Auditor’s Report

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date to the members of Chamundeshwari Electricity Supply Corporation Limited for the year ended March 31, 2017)

1) (a) The records maintained by the company with respect to fixed assets do not have the details with respect to quantity and situation of fixed assets. The company has informed us that it is in the process of updating its records with respect to the original cost of all assets and depreciation up to date.

(b) According to the information and explanations given to us, the management has physically verified certain fixed assets during the year under a programme for periodic verification of fixed assets which is found to be reasonable. As explained to us, no material discrepancy between physical count and fixed assets’ records was noticed and the same has been properly dealt with in the accounts.

Sl. Name of Division Details of Immovable property Asset in the name of No. where accounted

1 Kadakola LM Camp KEB NR Mohalla 2 Ayyarahally LM Camp KEB

3 Hullahally LM Camp KEB

4 Nanjanagudu Muguru LM Camp No title deeds available

5 Bettahally LM Camp KEB

6 Hunsur Sub-division KEB

7 Kattemalalavadi KEB

8 Periyapatna Sub-division KEB

9 Hunsur K.R.Nagar Collection Center KEB

10 Basavarajapura Camp No documents available

11 Saraguru Section office KEB

12 Saraguru quarters colony KEB

13 Harave MUSS KEB

Chamarajanagara Chandakavadi Section office 14 KEB 33Kv MUSS

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Sl. Name of Division Details of Immovable property Asset in the name of No. where accounted

Male mahadeshwara Hills LM 15 KEB Kollegala Camp 16 Kinakanahally LM Camp No title deeds available

17 Shanthinikethan KEB

18 MUSS Colony, Madikeri MUSS

Chairman, Indian 19 Madikeri Sub-division office Corporation & Indian Union

20 Madikeri Somawarpete Section office Govt property 21 Hanagalu Shettally KEB

22 Koodige Govt.

23 Shrimangala Section office KEB

24 Virajapete Section office MUSS

25 Tubinakere LM Camp KEB Mandya 26 Hulikere LM Camp In the name of Govt. school

27 Ravani LM Camp KEB Maddur 28 Kiragavalu Section office KEB

29 Hangarahally LM Camp KPTCL Pandavapura 30 Bidarahally LM Camp KEB

31 Old Electricity Colony(OEC) KEB Hassan 32 Dudda Section office KPTCL

33 Hally Mysore KEB Holenarasipura 34 Bachenahally Land is not available

2) We are informed that the physical verification of inventories has been carried out once in a year by the management. In the absence of adequate records of physical verification of inventories, we are unable to comment, whether the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

The discrepancies arising out of physical verification are yet to be adjusted in the inventory.

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3) The company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 and accordingly, reporting in clauses (iii)(a), (iii)(b) and (iii)(c) of paragraph 3 of the Order is not applicable to the Company.

4) According to the information and explanations given to us, the company has not given any loans, guarantees or security or made any investments during the year attracting the provisions of Sec. 185 or Sec. 186 of the Companies Act, 2013 and accordingly, reporting in clauses (iv) of paragraph 3 of the Order is not applicable to the Company.

5) According to the information and explanation provided to us, the company has not accepted deposits from the public except in respect of share application money from Government of Karnataka pending allotment for a period beyond 60 days which are covered under the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Act and the rules framed there under and accordingly, the company has complied with the said provisions expect in respect of shares application money pending allotment tantamounting to deposits.

6) We have broadly reviewed the books of accounts made and maintained by the company pursuant to the rules made by the Central Government for the maintenance of Cost records under section 148(1) of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determining whether they are accurate or complete.

7) (a) The company has been generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employees’ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues applicable to it with the appropriate authorities during the year. There were no undisputed amounts payable in respect of the aforesaid statutory dues outstanding as of 31st March 2017 for a period of more than six months from the date they became payable.

(b) According to the records of the company, there are no dues of income tax / sales tax/ duty of customs / duty of excise / value added tax which have not been deposited on account of any dispute except in respect of service tax dues as under:

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Sl. Name of the Forum where the dispute is Amount (In Period to which No. statute pending ` Lakhs) it relates

The Finance Act, Customs, Excise and Service Tax January 2005 – 1. 45.29 1994 (Service Tax) Appellate Tribunal, Bengaluru March 2009

The Finance Act, Customs, Excise and Service Tax April 2009 – 2. 15.33 1994 (Service Tax) Appellate Tribunal, Bengaluru September 2009

The Finance Act, Customs, Excise and Service Tax October 2009 – 3. 10.12 1994 (Service Tax) Appellate Tribunal, Bengaluru March 2010

The Finance Act, Customs, Excise and Service Tax October 2010 – 4. 3.39 1994 (Service Tax) Appellate Tribunal, Bengaluru March 2011

The Finance Act, Customs, Excise and Service Tax April 2011 – 5. 30.59 1994 (Service Tax) Appellate Tribunal, Bengaluru September 2011

The Finance Act, Customs, Excise and Service Tax October 2011 – 6. 10.81 1994 (Service Tax) Appellate Tribunal, Bengaluru March 2012

The Finance Act, The Commissioner of Central April 2012 – 7. 4.14 1994 (Service Tax) Excise (Appeals) June 2012

The Finance Act, The Commissioner of Central July 2012 – 8. 8.75 1994 (Service Tax) Excise (Appeals) March 2013

8) In our opinion and according to the explanations given to us, the company has not defaulted in repayment of loans or borrowings to a financial institution, bank or government and the company did not have any dues to debenture-holders during the year.

9) According to the information and explanations given to us, the term loans obtained by the company have been applied for the purpose for which they were raised and the company had not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year.

10) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit except in respect of: (a)Theft of electricity reported by the vigilance department for 715 cases involving an amount of ` 111.64 lakhs. Out of this ` 96.57 lakhs have been collected upto 31.03.2017 and (b) Misappropriation of cash amounting to ` 4.46 lacs by an employee during the year detected and recovered subsequent to 31.03.2017.

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11) The company, being a government company, provisions of section 197 relating to managerial remuneration are not applicable to the company and hence clause (xi) of paragraph 3 of the Order is not applicable to the Company.

12) According to the information and explanations given to us, the company is not a Nidhi company and hence clause (xii) of paragraph 3 of the Order is not applicable to the Company.

13) According to the information and explanations given to us, the company has not entered into any transactions with related parties and hence reporting under clause (xiii) of paragraph 3 of the Order is not applicable to the Company.

14) According to the information and explanations given to us, the further issue of shares are neither private placement nor preferential allotment by the company and the company has not allotted issued any debentures and hence reporting under clause (xiv) of paragraph 3 of the Order is not applicable to the Company.

15) According to the information and explanations given to us, the company has not entered into any non-cash transactions with directors or persons connected with and hence reporting under clause (xv) of paragraph 3 of the Order is not applicable to the Company.

16) According to the information and explanations given to us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

FOR GANESAN AND COMPANY CHARTERED ACCOUNTANTS FIRM REGN NO. 000859S

Sd/- G. HARI GOVIND PARTNER. M.NO.206563 Place : Mysuru Date : 21.09.2017

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ANNEXURE-B TO INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 2 (g) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting 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 Chamundeshwari Electricity Supply Corporation Limited (‘the Company’) as at March 31, 2017 in conjunction with our audit of the financial statements of the Company for the year ended and as on that date.

Management’s Responsibility for Internal Financial Controls

The Board of Directors of the Company are 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 the respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Standards on Auditing prescribed under Section 143(10) of the Act and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”), to the extent applicable to an audit of internal financial controls over financial reporting. Those Standards and the Guidance Note require that we comply with the 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 includes obtaining an understanding of internal financial controls over financial reporting, assessing

66 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

12th Annual Report 2016-17 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 auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that

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

(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Qualified Opinion

According to the information and explanations given to us and based on our audit, the following deficiencies in design / design and operation of controls resulting in significant deficiencies and material weaknesses have been identified as at March 31, 2017:

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 Inadequate design of internal control over the preparation of the financial statements being audited and failure of the information and communication component of internal control to provide complete and accurate output because of deficiencies in timeliness, completeness, or accuracy, for timely identification and accounting of liabilities and assets (including capitalisation for want of completion reports in respect of completed works) resulting in prior period adjustments in the financial statements.

 Deficient implementation of internal controls as employees who lack training to fulfil their assigned functions are noticed and some employees responsible for the accounting and reporting function lack the skills and knowledge to apply generally accepted accounting principles in recording the entity’s financial transactions.

 Inadequate design / design and implementation of controls resulting in misstatement unidentified by entity’s internal controls and involving estimations and judgements resulting in material corrections / rectifications in the financial statements based on audit.

 Inadequate documentation of the components of internal control and inadequate design of monitoring controls used to assess the design and operating effectiveness of the entity’s internal control over time as no documentary evidences have been furnished to us for any testing conducted by the management during the year of the implemented internal financial controls to ensure their operational effectiveness

 The absence of an internal process to report deficiencies in internal control to management on a timely basis as significant delay in completion of internal audit and reporting by the internal audit department at some divisions were noticed.

 Non-updation of the accounts manual adopted / followed and laying down comprehensive procedures for accounting (including identification of non-routine and non-systematic transactions) and that are to be complied at the units and divisions resulting in non-adherence of uniform accounting across the divisions / units of the company.

 Inadequate design / design and implementation of controls and procedures to ensure adherence to appropriate selection of policy and their implementation to comply with the mandatory accounting standards / generally accepted accounting principles having a material impact on the financial statements and indicating a likely ineffective oversight of entity’s financial reporting and internal control by those charged with governance:

o Accounting Standard 2 on valuation of Inventories due to application / adoption of standard rates in valuing certain inventory.

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o Accounting Standard 10 on Property, Plant and Equipment and Accounting Standard 16 Accounting for Borrowing Costs having an effect on depreciation charged and carrying amount of fixed assets in the financial statements due to:

. Substantial delays (spanning even more than one accounting period) in capitalisation and non-capitalisation of assets put to use included in capital work in progress have been observed.

. Depreciation on any adjustments to the historical cost of the fixed assets is not charged prospectively over the residual life of the asset and is charged prospectively considering as though such adjustments are new assets.

. Derecognition of certain assets meant for reuse which temporarily dismantled and non-charging of depreciation during the period between derecognition and capitalization of re-conditioned assets. Capitalisation of reconditioned assets at the carrying cost of the original asset (at which such assets were transferred to current asset) when retired from active use initially.

. Application of standard rates in respect of materials capitalized in project assets.

o Non-compliance of Accounting Standard 12 on Accounting for Government grants due to inapproprate estimation and accounting of “Depreication withdrawn from contribution/subsidy as per AS 12”.

o Non-compliance of Accounting Standard 15 on Retirement Benefits due to:

. Non-provision for liability on leave encashment benefits and family benefit fund based on actuarial valuation.

o Non-compliance of Accounting Standard 22 on Accounting for Taxes on Income due to:

. Recognition deferred tax liabilities on the tax effect of timing difference of depreciation alone and without considering timing differences relating to accumulated losses and other differences.

o Non-compliance of Accounting Standard 28 on Impairment of Asset due to:

. Non-assessment at the Balance Sheet date of the existence of any impairment of its assets (especially assets retired from active use / scrapped).

o Absence of a mechanism to ascertain the individual / cumulative effect of non-compliance with accounting standards / generally accepted accounting principles on the state of affairs and results of the company.

 Inadequate design of internal control over a significant account or process due to the following:

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o Accounting for accessories / components items forming part of the released transformers, i.e., oil and coil items (based on schedule of rates) under other current assets and correspondingly crediting the miscellaneous receipts account at the time of withdrawal from the fixed assets instead of the carrying amount of the released asset.

o Delay in reconciliation of significant and material account balances (say within a quarter) for appropriate accounting of any adjustments that may be required.

o Recognition and measurement of regulatory assets to the extent of uncertainty in realisability of such assets.

A ‘material weakness’ is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis.

In our opinion, except for the effects / possible effects of the material weaknesses described above on the achievement of the objectives of the control criteria, the Company has, in all material respects, maintained adequate internal financial controls over financial reporting as of March 31, 2017, 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”, and the Company’s internal financial controls over financial reporting were operating effectively as of March 31, 2017.

We have considered the material weaknesses identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the March 31, 2017 financial statements of the Company, and these material weaknesses do not affect our opinion on the standalone financial statements of the Company.

FOR GANESAN AND COMPANY CHARTERED ACCOUNTANTS FIRM REGN NO. 000859S

Sd/- G.HARI GOVIND PARTNER. M.NO.206563 Place : Mysuru Date : 21.09.2017

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Form No. MR-3

[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014]

SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 2016-17

To The Members, M/s. Chamundeshwari Electricity Supply Corporation Limited No. 29, Vijayanagara 2nd stage, Hinakal, Mysuru 570017

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by M/s. Chamundeshwari Electricity Supply Corporation Limited, (Hereinafter called the company). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion, the company has, during the audit period covering the financial year ended on 31st March 2017 complied with the statutory provisions listed hereunder and also that the Company has proper Board- processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records maintained by M/s. Chamundeshwari Electricity Supply Corporation Limited (“the Company”) for the financial year ended on 31st March 2017 according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made there under;

(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made there under;

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;

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(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):-

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

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

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

(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;

(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;

(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; and

(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998;

We have also examined compliance with the applicable clauses of the following:

(I) Secretarial Standards with respect to Meetings of Board of Directors (SS-1) and General Meetings (SS-2) issued by The Institute of Company Secretaries of India (effective from 1st July, 2015)

Our scope of Audit is restricted to compliances under the Companies Act, 2013 and rules made there under and other Acts, as specified above, which are applicable to the company.

The provisions of Clause (ii), (iii). (iv) and Clause (V) are not applicable for this company.

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Company Law:

Matter for Emphasis:

1. The Company has not amended the Articles of Association in line with the new Companies Act, 2013; it is suggested to amend the same.

2. The Company has not appointed a Company Secretary, who is also regarded as KMP under the Companies Act, 2013. However, it was observed that company has made an effort in securing the services of Practicing Company Secretary on contract basis.

Labour Law:

1. All the premises and establishment have been registered with the appropriate authorities.

2. The company has not employed any child labour/Bonded labour in any of its establishments.

3. The company is ensuring the compliance of PF to the employees.

VAT Act

1. The Company has complied with procedures of VAT Act; the payment has been made accordingly within stipulated time.

We further report that:

The Board of Directors of the Company is duly constituted being nominees of the Government, The Company has independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in Compliance with the provisions of the Act.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

We further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

We further report that during the audit period the Company has-

1. Not issued Public/Right/Preferential issue of shares / debentures/sweat equity, etc.

2. No Redemption / buy-back of securities

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3. No Major decisions taken by the members in pursuance to section 180 of the Companies Act, 2013

4. No Merger / amalgamation / reconstruction, etc.

5. No Foreign technical collaborations.

TSDJ & Associates Company Secretaries Sd/- Sheela Arvind Partner Membership No: 32648 CP No: ACS 11992 FRN No.P2015KR043500 Place: Bengaluru Date: 20/09/2017

This report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of this report.

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“Annexure A”

The Members, M/s. Chamundeshwari Electricity Supply Corporation Limited No. 29, Vijayanagara 2nd stage, Hinakal, Mysuru 570017

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure the correct facts are reflected in secretarial records. We believe that the process and practices, we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and books of accounts of the Company.

4. Whenever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of the management. Our examination was limited to the verification of procedures on test basis.

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

TSDJ & Associates Company Secretaries Sd/- Sheela Arvind Membership No: 32648 CP No: ACS 11992 FRN No.P2015KR043500 Place: Bengaluru Date: 20/09/2017

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ANNEXURE – 2 – VAT ACT

Vat 100 Filling Details

Sl. Date of Month Return Ref No Due Date Date of Filling Remarks No Payment

3531189970 20/05/2016 19/05/2016 1 Apr-16 20/05/2016 NA 3745919377 27/10/2016 20/07/2016

3529704956 20/06/2016 2 May-16 20/06/2016 20/07/2016 NA 3886400917 30/11/2016

3611284607 20/07/2016 20/07/2016 3 June-16 20/07/2016 NA 3816869397 26/12/2016 20/08/2016

3689793059 20/08/2016 20/08/2016 4 July-16 3754360841 20/08/2016 29/09/2016 NA 19/11/2016 3966587122 30/01/2017

3703234539 20/09/2016 5 Aug-16 20/09/2016 20/09/2016 NA 4034046972 28/02/2017

3772762110 20/10/2016 20/10/2016 6 Sep-16 3706920261 20/10/2016 27/10/2016 20/12/2016 NA 4073379283 20/03/2017 19/11/2016

7 Oct-16 3892215220 20/11/2016 19/11/2016 19/11/2016 NA

3895762911 20/12/2016 20/12/2016 8 Nov-16 20/12/2016 NA 4265029611 26/05/2017 20/01/2017

3902468131 20/01/2017 9 Dec-16 20/01/2017 20/01/2017 NA 4221528380 28/06/2017

3921925023 20/02/2017 10 Jan-17 20/02/2017 17/02/2017 NA 4347079421 31/07/2017

4081374963 20/03/2017 11 Feb-17 20/03/2017 20/03/2017 NA 4392178505 31/08/2017

12 Mar-17 41500051747 20/04/2017 20/04/2017 18/04/2017 NA

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Annexure 1: Company Information

Sl.No. Particulars

M/s.CHAMUNDESHWARI ELECTRICITY 1. Name of the Company SUPPLY CORPORATION LIMITED

2. CIN No. of the Company U40109KA2004SGC035177

3. Date of Incorporation 06/12/2004

4. Authorized Share Capital 750,00,00,000

5. Subscribed Share Capital 5,08,56,54,340

6. Paid Up Share Capital 5,08,56,54,340

7. Registered Office Address No. 29, Vijayanagara 2nd stage, Hinakal, Mysuru 570017

2: Changes in Capital Structure during 01/04/2016 to 31/03/2017.

CAPITAL STRUCTURE (In `)

As on Add: increase Less: Date of Capital as on Particulars 01/04/2016 in capital (if reduction in passing 31/03/2017 any) capital (if any) Resolution

Authorized 6,000,000,000 1,500,000,000 - 17/01/2017 750,00,00,000 Capital

Equity 60,00,00,000 15,00,00,000 - 17/01/2017 75,00,00,000

Unclassified - - - - -

Issued Capital 508,56,54,340 - - - 508,56,54,340

Subscribed 508,56,54,340 - - - 508,56,54,340 Capital

Paid-up Capital 508,56,54,340 - - - 508,56,54,340

Public Issue - - Not Applicable - -

Rights Issue - - Not Applicable - -

Bonus Issue - - Not Applicable - -

Private - - Not Applicable - - Placement/

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CAPITAL STRUCTURE (In `)

As on Add: increase Less: Date of Capital as on Particulars 01/04/2016 in capital (if reduction in passing 31/03/2017 any) capital (if any) Resolution Preferential Allotment (other than conversion)

Private - - Not Applicable - - Placement/ Preferential Allotment (arising out of conversion)

Allotment of - - Not Applicable - - shares pursuant to ESOP

Allotment - - Not Applicable - - consequent to Scheme of Arrangement/ Merger/ Amalgamation etc.

Buy back of - Not Applicable - - - shares

Reduction of - Not Applicable - - - Capital

Share Forfeited - - - - -

1. The Company has enhanced the Authorised Capital from ` 600,00,00,000 to ` 750,00,00,000 in the Extra Ordinary General meeting held on 17/01/2017.

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3: Directors & KMP (Existing and any change made between 01/04/2016 to 31/03/2017)

Sl. Date of Date of Name & Designation Address No. Appointment Cessation

Poondla Ravi Kumar No. 373,12th Cross, 5main, 1 director Hig Colony, New Bel Road, 10/02/2014 10/03/2017 DIN : 02285126 Bangalore, 560094 Karnataka

Kiran Doddappa #1620, 6th A Main,, 2 Managing director Ramakrishna Nagar, Mysore, 10/01/2014 - DIN : 06849060 570022, Karnataka

29/1, 2nd Cross, Munivenkatappa Nagaraja Kanakanapalya 4th Block, 3 Director 08/10/2009 - Jayanagar, Bangalore BBMP, DIN: 02893520 560011, Karnataka

Shikha Chandramohan A.T.I, Lalitha Mahal Road, 4 Director 21/08/2013 07/04/2016 Mysore, 570011, Karnataka DIN: 06447295

Sumanth Shankar Rao No. 234, 6th Main, Jayanagar 5 Independent Director 4th Block, Bangalore, 560011, 06/09/2013 01/12/2016 DIN: 00349212 Karnataka

Alana Shivanna No. 570, First Main, Kuvempu 6 CFO ( KMP) Road, Bogadi Village, Mysore, 01/12/2014 - PAN: ARAPS5683G 570026, Karnataka

Pratap Maneiah No. 73 6th main, 2nd stage, E 7 Director Block, Rajaji Nagar, 12/12/2014 - DIN: 07089349 Bangalore, 560010, Karnataka

T H Mohan Kumar #237, 67th Cross, 5th Block, 8 Director Rajajinagar, Bengaluru, 17/01/2015 07/04/2016 DIN: 07171390 560010, Karnataka, India

Sindhu B 720,11th Main, T K Layout,4th 9 Director Stage, Mysore, 570009, 02/03/2015 31/12/2016 DIN: 07169103 Karnataka

32 1st Cross 6th Main Alenahalli Ningegowda Jayaraj Sarvabouma Nagar 10 Chikkallasa, Bangalore South 07/04/2015 - Director Subramanyapura Bangalore DIN: 07178623 South, Bangalore, 560061

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Sl. Date of Date of Name & Designation Address No. Appointment Cessation

399, 4th Crs, 4th Mn, Hebbal, Narayanappa Lakshmana Kempapura, Coffee Board 11 Director 17/06/2015 17/08/2016 Layout, Bangalore, 560024, DIN: 06724550 Karnataka Arif Khan #61 AP Road, Pension 12 Director Mohalla, Hassan, 09/06/2016 - DIN : 07540019 Karnataka, 573201 S/O Late Dasabhovi Dasabhovi Gopal #110,2nd Cross, Raghavendra 13 Director 15/06/2016 - Nagar, Mysore, Karnataka DIN : 07544671 570011 Huchegowda Sannenahalli, 14 Director Sagathavalli Hassan 31/05/2016 - DIN : 07532198 Karnataka, 573116

Swamy Gowda 212, 25th Cross, 15 Director Kuvempunagar, Hassan, - DIN : 07532258 Karnataka 573201 Kasturaiah Govindraju #758, 8th main, 3rd stage 16 Independent Director 4th block, Basaveswaranagar 07/05/2016 24/09/2016 DIN: 06754470 Bangalore Karnataka, 560079 Ajay Nagabhushan CEO Quarters, Narayanpur 17 Director Near TV Tower, Haliyal Road 07/05/2016 12/09/2016 DIN: 02714891 Dharwad, Karnataka,580008 Quarter Number 1, New K T Mahantappa Electric Colony, Kotitopu 18 Director 17/08/2016 - Road, Tumkur, Karnataka, DIN : 06981574 572102 Doddaiah Siddaraju 4-24, Kollegal-11, Kollegal 19 Director 08/08/2016 - Karnataka, 571440 DIN : 07585636 G-30 Hyderabad Estate Charulata Somal L.D. Rupar3el Marg 20 Director 03/08/2016 - Mumbai, Maharashtra DIN : 07540067 400006

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Sl. Date of Date of Name & Designation Address No. Appointment Cessation

# 602/A5, 18th Cross, Upper Shivakumar D K Palace Orchards, 21 Director 24/09/2016 10/03/2017 Sadashivanagar, Malleswaram DIN : 02021885 Bangalore Karnataka 560080

#001, No.15, Cornwell Road Hanumappa Nagesh Langford Town, Bg-25 22 Director 01/12/2016 - Bangalore, Karnataka DIN: 02309417 560025

Pavan Kumar Malapati No. 3/1, Mustur, 23 Director Bathalapalli, Anantapur 31/12/2016 - DIN : 07793505 Andhra Pradesh 515001

Rajneesh Goel Managing Director, KSIIDC, Khanija Bhavan, 4th Floor, 49, 24 Director 10/03/2017 - Race Course Road, DIN : 02019133 Bangalore, Karnataka 560001

Chandrakala B K Belagavally Estate, 25 Director Bikkode(Venktipete), Hassan, 06/06/2016 - DIN : 07536471 Karnataka 573215

Madan Murali 17B Nanjappa Bld Opp Taluk Off Bsk Director 26 Shakambarinagar K K Pura 31/05/2016 - DIN : 07532253 RD, Bangalore, Karnataka

560070

Latha Jayanna #230-2, Alur Chamarajanagar 27 Director 09/06/2016 - TQ,Karnataka, 571113 DIN : 07540068

C K Suresh 20, A Cholenahalli, 28 Director D G Halli, C R Patna Hassan 31/05/2016 - DIN : 07532257 Dist, Karnataka, 573220

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4: List of Share Holding pattern as on AGM Date 26/09/2016

Nominal Value Percentage Sl. No. of Name of the Shareholders of the Shares Shareholding No Shares held held (in ) ( % )

Governor of Karnataka represented by: P. Ravikumar (as Nominee of GOK) Addl. Chief Secretary, 1 50,85,65,428 10 99.9999988 Energy Department , Govt. of Karnataka No.236, Vikasa Soudha Bangalore-560001

ISN Prasad Principal Secretary Finance Department Govt. of 2 1 10 0.000000196 Karnataka, Vidhana Sauda, Bangalore-560 001 (as Nominee of GoK)

D Kiran, IRS Managing Director - CESC No. 927 LJ Avenue Commercial 3 1 10 0.000000196 Complex, New Kantharaj Urs Rd Saraswathipuram, Mysore-570 016 (as Nominee of GoK)

S. Sumanth Director (Technical) - CESC No. 927 LJ Avenue Commercial 4 1 10 0.000000196 Complex, New Kantharaj Urs Rd Saraswathipuram, Mysore-570 016 (as Nominee of GoK)

K T Mahantappa Director (Technical) - CESC No. 927 LJ Avenue Commercial 5 1 10 0.000000196 Complex, New Kantharaj Urs Rd Saraswathipuram, Mysore-570 016 (as Nominee of GoK)

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4: List of Share Holding pattern as on AGM Date 26/09/2016

Nominal Value Percentage Sl. No. of Name of the Shareholders of the Shares Shareholding No Shares held held (in ) ( % )

M Pratap Chief Engineer, Transmission zone, 6 1 10 0.000000196 KPTCL, FTS compound, NR Mohalla, Mysore, (as Nominee of GoK)

R Balasubramanian Executive Director (CA) & Company 7 Secretary, KPC Ltd., RC Road 1 10 0.000000196 Bangalore-560 001 (as Nominee of GoK)

Total 50,85,65,434 10 100

5: Transfers during the Year:

Sl. Date of Folio Transferee’s Folio No. Of Transferor’s Name No. Transfer No. Name No. Shares

1 25/06/2016 C. Shikha 32 S. Sumanth 39 01

2 25/08/2016 N.Lakshman 38 K T Mahantappa 40 01

3 17/01/2017 S.Sumanth 35 H Nagesh 41 01

4 17/01/2017 R. Balasubramanian 27 K T Hiriyanna 42 01

Note: 1. Sri. S. Sumanth and Sri. R.Balasubramanian were shareholders as on Annual General Meeting dated 26th September 2016 and consecutively their shares were transferred to Sri. Nagesh and Sri. K T Hiriyanna as on 17th January 2017 as reflected above.

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6: Forms, Returns filed by the company between 01/04/2016 to 31/03/2017.

Forms and Returns filed by the Company pursuant to the provisions of the Companies Act, 2013 read with the Rules/ Regulations made there under

Financial Year 2016 – 17

In case of delay, Whether whether Section & filed within prescribed Sl. Form Particulars Date of Rule the procedure SRN Status No. No. of Filing Filing Applicable prescribed followed and time additional fees paid

Auditors Yes With Additional 1 Form ADT-1 Section 139 26/10/2016 No G17607201 Filed Appointment Fees (600+3600)

Creation with Rural 2 Form CHG-1 Section 77 Electrification 20/09/2016 Yes - G11868676 Filed Corporation Limited

Creation with State Yes Additional 3 Form CHG-1 Section 77 07/10/2016 NO G13872635 Filed Bank of Mysore Fees (600+1200)

Creation with State 4. Form CHG-1 Section 77 16/05/2016 YES - Filed Bank of Mysore G03367356

5. Form CRA-4 Section148 Cost auditor report 26/10/2016 Yes - G17893785 Filed

Section 168 Sri. Ajay Yes with additional 6 Form DIR-12 05/11/2016 No G19972777 Filed & 170 Nagabhushan fees (600+6000)

Section 168 Sri. Ajay Yes with additional 7 Form DIR-12 07/11/2016 No G20176921 Filed & 170 Nagabhushan fees (600+1200)

1. Sri. Arif khan 2. Sri. Dasabhovi Gopal Yes with additional Section 168 8 Form DIR-12 3. Sri. Huchegowda No fees Filed & 170 4. Sri. Swamy 29/08/2016 (600+2400) G10125623 Gowda

1. Sri. Shikha Chandramohan Section 168 Yes with additional 9 Form DIR-12 2. Sri. Thamenahalli No Filed & 170 30/08/2016 fees (600+6000) G10215994 Hanumantharaya ppa Mohankumar Sri. Shivakumar Section 168 Yes with additional 10 Form DIR-12 Kempegowda No Filed & 170 10/11/2016 fees (600+1200) G21121603 Doddahalahalli

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Section 168 Sri. Kasturaiah Yes with additional 11 Form DIR-12 04/11/2016 No G19795830 Filed & 170 Govindraju fees (600+6000) 1. Sri.Narayanapp a Lakshmana 2. Sri. Kukkawada Section 168 Yes with additional 12 Form DIR-12 Totadabasappa 10/11/2016 No G21071469 Filed & 170 fees (600+3600) Mahantappa 3. Sri. Doddaiah Siddaraju

13 Form MGT 14 Section 117 56th BM 10/05/2016 YES - G02991420 Filed

14 Form MGT 14 Section 117 56th BM 10/05/2016 yes - G02983765 Filed Yes with additional 15 Form MGT 14 Section 117 59th BM 19/09/2016 No G11768652 Filed fees (600+1200)

16 Form MGT 14 Section 117 49th BM 10/05/2016 Yes - G02994275 Filed 17 Form PAS 3 Section 39 56th BM 22/06/2016 Yes - G05805486 Filed Enhancement 18 Form SH 7 Section 64 Of Authorised 13/05/2016 Yes - G03241775 Filed share capital Balance Sheet & Yes Additional 19 Form AOC-4 Section 134 Profit & Loss 07/12/2016 NO G28574663 Filed Fees (600+2400) account 20 Form MGT-7 Section 92 Annual Return 25/11/2016 Yes - G24938789 Filed Creation with Rural 21 Form CHG-1 Section 77 Electrification 17/04/2017 YES - G41118753 Filed Corporation Limited Creation with Rural 22 Form CHG-1 Section 77 Electrification 30/03/2017 Yes - G39552245 Filed Corporation Limited

Enhancement Yes with additional 23 Form SH 7 Section 64 Of Authorised 22/03/2017 No fees G38826509 Filed capital (600+19)

Yes with additional Form MGT 24 Section 117 62nd BM 24/03/2017 NO fees G39042619 Filed 14 (600+2400)

25 Form CHG-1 Section 77 Creation with Rural 30/03/2017 Yes - G39552435 Filed

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 85

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Creation with 26 Form CHG-1 Section 77 03/04/2017 Yes - G39935713 Filed Syndicate Bank

7: Board Meeting Minutes

MINUTES Board Meeting

Gap Has the Total No. of Leave of Total No. Between notice Directors on Absence Date of Place of of Chairman of the the two been the Board on Granted Meeting Meeting Directors Meeting Board served date of to Present Meetings on time Meeting Director

Vikasa 04/07/2016 95 Days Yes 20 3 17 Sri. P.Ravikumar Souda

Registered 16/07/2016 11 Days Yes 20 5 15 Sri. P.Ravikumar Office

Registered 20/08/2016 34 Days Yes 20 5 15 Sri. P.Ravikumar Office

Registered 17/09/2016 27 Days Yes 20 6 14 Sri.P.Ravikumar Office

Registered 26/09/2016 8 Days Yes 20 4 16 Sri. D.K. Shivakumar Office

Kaveri 17/01/2017 112 Days Yes Bhavan, 20 4 16 Sri. D.K. Shivakumar KPTCL

Note: 1. Smt.B.Sindhu and Sri. Ajay Nagabhushan Directors has not attended any Board Meeting during their tenure of Directorship.

8. Purchase Committee meeting details:

86 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

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The Company has constituted the Purchase Committee comprising 3 Members i.e., Sri. D. Kiran (Chairman), Sri. N. Lakshmana, Sri. M Pratap. Shri. Lakshmana transferred with effect from 17th August 2016 and Shri. K.T.Mahantappa was appointed in his place. The Company has Conducted 6 (Six) Purchase Committee meeting during the year 2016- 17, i.e. on 06.04.2016, 08.07.2016, 27.08.2016, 14.11.2016, 23.12.2016 and 04.03.2017 at the registered office of the Company.

9. Audit Committee Meeting Details:

The Company has constituted the Audit committee meeting comprising 4 Directors, i.e, Sri. H.Nagesh, Sri. K.T. Mahantappa, Sri. M.Pratap, Sri. Pavan Kumar Malapati The Company has conducted 2 (Two) Audit Committee meeting during the Year 2016-17 i.e on 08.07.2016 and 17.01.2017

10: Annual/Extra Ordinary General Meeting Minutes

No. of No. of Date of Members Proxy Date of Place of Chairman of the serving the Attended attended Meeting Meeting Meeting Notice the the Meeting Meeting

26/09/2016 Shri. D.K.Shivakumar

AGM Registered 24/09/2016 Chairman & Governor’s (Conducted at Office 7 - representative Shorter Notice)

EGM KPTCL, Shri. D.K.Shivakumar

(Conducted at Cauvery Chairman & Governor’s 17/01/2017 6 - Shorter Notice) Bhavan representative

Note: 1. Sri.H.Nagesh was granted Leave of Absence from attending EGM.

10: Details Regarding Office of Place of Profit:

CESCOM being a government company, the above provision is not applicable. All the directors are Government representative, there is no interest being government nominees.

11: KEY MANAGERIAL PERSONNEL

Name of Person /PAN: KIRAN DODDAPPA Qualification: IRS Officer Age : 38 Years

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 87

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Designation: Managing Director Date of Appointment: 01/12/2014 Remuneration as per last Salary drawn: Rs.13,47,895 (as per Schedule V) Date of filing of MGT-14 and DIR12 and SRN: Filed DIR 12 Vide SRN C02784114 No. of shares held: 01

12: Creation of Charge.

Date of Service Charge Sl. Charge Request Charge ID amount Charge Holder Address No. Creation/ Number secured Modification (SRN)

Rural 1/5 Halasuru Electrification Road Bangalore G41118753 1 100090065 30/03/2017 100,00,00,000 Corporation 560042 Limited

#15, Vectra House, 3rd Floor, G41833310 1st Main Road, 2 100092096 30/03/2017 250,00,00,000 Bank of India 6th Cross, Gandhinagar, Bengaluru KA 560009I

Rural 1/5, Halasuru Electrification Road, Bangalore 3 100086443 16/03/2017 22,87,32,000 G39552245 Corporation KA560042 Limited

Rural 1/5 Halasuru Electrification Road Bangalore G39552435 4 100086445 16/03/2017 100,00,00,000 Corporation KA 560042 Limited

Kuvempunagar Branch New G39552435 Syndicate 5 100087361 10/03/2017 175,00,00,000 Kantharaja Urs Bank Road Mysore KA 570023

Rural Core 4scope 6 100049975 25/08/2016 100,00,00,000 Electrification Complex 7 Lodi

88 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

12th Annual Report 2016-17

Date of Service Charge Sl. Charge Request Charge ID amount Charge Holder Address No. Creation/ Number secured Modification (SRN) Corporation Road New Delhi G11868676 Limited 110003

13: CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company has formed the CSR Committee with effect from 4th July 2016. The Members of the CSR Committee are Sri. H. Nagesh (Chairman), Sri. K T Mahantappa and Sri. M.Pratap. The Company is yet to execute selected projects on Corporate Social Responsibility.

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 89

12th Annual Report 2016-17

COMMENTS OF THE COMPTROLLER AND AUDITOR GENRAL OF INDIA UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED, MYSORE FOR THE YEAR ENDED 31 MARCH 2017.

The preparation of financial statements of Chamundeshwari Electricity Supply Corporation Limited, Mysore for the year ended 31 March 2017 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 is the responsibility of the management of the company. The statutory auditor appointed by the Comptroller and Auditor General of India under section 139 (5) or 139(7) of the Act is responsible for expressing opinion on the financial statements under section 143 of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 21.09.2017.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section 143(6) (a) of the Act of the financial statements of Chamundeshwari Electricity Supply Corporation Limited, Mysuru for the year ended 31 March 2017 .This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records. In view of the revisions made in the financial statements by the management, as a result of my audit observations highlighted during supplementary audit as indicated in the Note No. 36 of the financial statements, I have no further comments to offer upon or supplement to the statutory auditors’ report under section 143(6)(b) of the Act.

For and on behalf of the Comptroller and Auditor General of India

Sd/- (BIJIT KUMAR MUKHERJEE) ACCOUNTANT GENERAL (ECONOMIC & REVENUE SECTOR AUDIT) KARNATAKA,BENGALURU Bengaluru Date:- 21.09.2017

90 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

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BALANCE SHEET AS AT 31st MARCH 2017 (Amount ` in Lakhs) AS AT THE END OF AS AT THE END OF SL. NOTE CURRENT PREVIOUS PARTICULARS NO. NO REPORTING PERIOD REPORTING PERIOD 31.3.2017 31.3.2016 EQUITY AND I LIABILITIES (1) Shareholder's Funds a) Share Capital 1 50856.54 50856.54

b) Reserves and Surplus 2 6395.50 -3510.81

Share Application (2) Money Pending 3 15229.00 1400.00 Allotment Sub-Total 72481.04 48745.74

Non-Current (3) Liabilities a) Long-term borrowings 4 100404.03 85330.24

Deferred Tax b) 5 9074.61 7169.05 Liabilities(Net) Other long term c) 6 61837.94 55861.14 liabilities d) Long-term Provisions 7 0.00 0.00

Sub-Total 171316.58 148360.43

(4) Current Liabilities

a) Short-term borrowings 8 24013.03 4157.85

b) Trade payables

Dues to MSMEs 0.00 0.00

Due to others 9 286800.53 231553.78

c) Other current liabilities 10 99120.36 92320.43

d) Short-term provisions 11 588.99 0.00

Sub-Total 410522.91 328032.05

TOTAL 654320.53 525138.22

II Assets

1 Non-Current assets

(a) Fixed assets

(i) Tangible Assets 12 229200.49 188993.53

(ii) Intangible assets 13 515.17 3.31

(iii) Capital work-in- 14 26019.02 26174.35 progress (iv) Intangible assets 15 351.20 0.00 under development

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 91

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AS AT THE END OF AS AT THE END OF SL. NOTE CURRENT PREVIOUS PARTICULARS NO. NO REPORTING PERIOD REPORTING PERIOD 31.3.2017 31.3.2016

Non-Current (b) 16 251.00 251.00 investments ( c) Deferred tax assets (net) 17 0.00 0.00

Long term loans and (d) 18 0.00 4.69 advances Other non-current (e) 19 122017.83 52395.08 assets Sub-Total 378354.71 267821.95

2 Current assets

(a) Current Investments 20 0.00 0.00

(b) Inventories 21 5081.52 6831.39

(c ) Trade receivables 22 216031.85 181241.76

Cash and bank (d) 23 16728.92 19178.99 Balances Short-term loans and (e) 24 6728.46 12737.14 advances (f) Other current assets 25 31395.06 37326.99

Sub-Total 275965.82 257316.27

TOTAL 654320.53 525138.22

Significant Accounting policies, Notes on Accounts form integral part of these financial statements

Sd/- Sd/- Sd/- (A.Shivanna) (K.T. Mahanthappa) (D.Kiran) Chief Financial Officer Director (Technical) Managing Director

PLACE: MYSURU DATE : 21.09.2017

In terms of our report of Even date attached herewith For Ganesan & Company Chartered Accountants

Sd/- (G.HARIGOVIND) Partner Membership No: 206563

92 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

12th Annual Report 2016-17

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31.03.2017 (Amount ` in Lakhs) SL. NOTE CURRENT PREVIOUS NO. PARTICULARS NO. YEAR YEAR 2016-17 2015-16 I Revenue from operations (Distribution of Power) 26 347902.86 277583.10 II Other Income 27 21132.44 21523.42 III Total Revenue (I+II) 369035.30 299106.52

IV Expenses

Purchase of Power 28 326690.70 271774.60 Employee Benefits Expense 29 31541.01 32765.04 Finance Costs 30 19720.03 15030.15 Depreciation and amortization expenses 31 14757.07 11745.83 Other Expenses 32 23406.14 11947.37 Total Expenses 416114.95 343263.00

PROFIT BEFORE TAX & RATE REGULATED V -47079.65 -44156.47 ACTIVITIES (III-IV) VI Less Regulatory Income / Expenses 33 51798.60 46446.00 VII Extraordinary Items

VII PROFIT BEFORE TAX (V-VI) 4718.95 2289.53

VIII TAX EXPENSE

Provision for Taxation - Current Tax 669.02 0.00 Short Provision for Income Tax- Previous years 0.00 0.00 Deferred Tax Asset / Liability 34 1905.56 1497.25 Profit / (Loss) from the period from continuing IX 2144.37 792.28 operations (VII-VIII) X Profit / (Loss) from discontinuing operations

XI Tax expense of discontinuing operations 0.00 0.00

Profit / (Loss) from discontinuing operations XII (after Taxes) XIII Profit / (Loss) for the period (IX +/- XII) 2144.37 792.28

XIV Earning per equity share (in `) 0.66 0.24

Basic and diluted

Significant Accounting policies, Notes on accounts form integral part of these financial statement.

Sd/- Sd/- Sd/- (A.Shivanna) (K.T. Mahanthappa) (D.Kiran) Chief Financial Officer Director (Technical) Managing Director

PLACE: MYSURU DATE : 21.09.2017 In terms of our report of even date attached herewith For Ganesan & Company Chartered Accountants

Sd/- (G.HARIGOVIND) Partner Membership No: 206563

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 93

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CASH FLOW STATEMENT FOR THE YEAR 2016-17 (Amount ` in Lakhs)

Particulars Current Year 2016-17 Previous Year 2015-16 A. Cash Flow from Operating activities

Profit before taxation 4718.95 2289.54

4718.95 2289.54

ADD : Adjustments for

Depreciation 15829.05 12870.44

Interest & Finance Charges 19720.03 15030.15

Income tax/Deferred Tax -2574.58 32974.51 -1497.25 26403.35 Operating Profit before Working Capital 37693.46 28692.88 Changes Adjustments for

Trade receivables -25721.09 51672.72

Other Receivables -58138.58 -53317.37

Loans,deposits & Advances (Non trade) -283.42 -93.45

Trade/Current payables 45295.36 3684.40

Reserve for Material cost variance -4051.56

Inventories -520.07 -2601.37

Other bank balance 728.08 -38639.73 137.54 -4569.10 Cash generated from Operations -946.27 24123.78

Less Net Income tax (paid)/refunds 35.34 35.34 25.46

Net Cash from operating activities (Total of 'A') -910.94 24149.25

B. Cash Flow from Investing Activities

Purchase/Acquisition of fixed Assets (Net) -54277.94 -58045.96

Capital Works in Progress -195.88 13977.77

Capital Advances 5922.85 3885.26

Net Cash from Investing activities (Total of 'B') -48550.96 -40182.94

C. Cash Flow from Financing Activities

Proceeds from Borrowings 74964.55 45398.53

Repayments of borrowings -36366.46 -22452.58

Shares Pending allotment 13829.00 12773.04

Contribution, grant and Subsidy towards Capital 11162.93 2658.30 assets Service Line & Security Deposits 1075.22 1226.01

Interest & Finance Charges -16925.33 -13661.89

Net Cash Flow from Financing Activities 47739.91 25941.41 (Total of 'C') (Increase)/(Decrease) in Cash & Cash -1721.99 9907.72 Equivalents Add : Cash and Cash equivalents as at the 18325.66 8417.94 commencement of the Period Cash and Cash Equivalents as at the end of 16603.67 18325.66 the Period Notes: 1.The above statement has been prepared in indirect method as per AS-3 2. Cash and Cash equivalent refer note 23 of the financial statement

Sd/- Sd/- Sd/- (A.Shivanna) (K.T. Mahanthappa) (D.Kiran) Chief Financial Officer Director (T) Managing Director PLACE: MYSURU

DATE : 21.09.2017

In terms of our report of even date attached herewith For Ganesan and Company Chartered Accountants

Sd/- (G.HARIGOVIND) Partner Membership No 206563

94 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

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NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.3.2017 NOTE: 01 SHARE CAPITAL (`in Lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code Authorised Capital 1.1 75,00,00,000 Equity shares 75000.00 60000.00

of `10/- each Issued, Subscribed and Paid up Equity Share Capital 1.2 52.3017 50,856.54 50,856.54 50,85,65,434 Equity Shares of `10/- each)

50,856.54 50,856.54

TOTAL 50,856.54 50,856.54

1.3 Company is having one Share each in the name of 6 Directors and remaining shares are held in the name of his Excellency Governor of Karnataka.

1.4 The reconciliation of the No. of Equity shares outstanding is set out below: Particulars As at 31.3.2017 As at 31.3.2016 No. of Equity Shares at the beginning of the year 508565434 325515034 Add: No. of Equity shares issued during the year 0 183050400 Less: No of Equity Shares cancelled on buy back during the year 0 0 No of Equity Shares at the end of the Year 508565434 508565434

Based on order of GOK dated 10.09.2015, Capital grants of ` 66,36,04,000/- Received from GOK since 2011-12 have been converted into equity during the year 2015-16.

1.5 Details of Authorised Share Capital (` in Lakhs) Sl. Authorised Year Reference No. Share Capital Memorandum of Association 1 2005-06 500.00 1st BM held on 26th March, 2005 at 3.00 PM at the Board Room, KPTCL, 1st Floor Kaveri Bhavan, Bangalore Extraordinary General Meeting of the Shareholders of the 2 2006-07 1,500.00 Company held on 13th May 2005 at 4.30 P.M. at Board Room Kaveri Bhavan, Bangalore 15th BM held on 17th Septemeber,2007 at 5.00 PM at the Board Room, KPTCL, Kaveri Bhavan, Bangalore 3 2007-08 15,000.00 2nd AGM held on 11th October 2007 at 1.15 PM at the Registered Office of the Company, Mysore

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 95

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1.5 Details of Authorised Share Capital (` in Lakhs) Sl. Authorised Year Reference No. Share Capital 4 2008-09 15,000.00 _ 5 2009-10 15,000.00 _ 28th BM held on 31st March,2010 at DSM Conference Hall, BESCOM, KR Circle, Bangalore 6 2010-11 25,000.00 Extraordinary General Meeting of the Shareholders of the Company held on 9th August 2010 at 11.30 A.M. at Room No.222, II Floor, Vikasa Soudha, Bangalore 7 2011-12 25,000.00 - 35th BM held on 17th November,2011 at 11.00 A.M. at 8 2012-13 30,000.00 Room No. 222, Vikasa Soudha, Bangalore 8th AGM on 16th December,2013 at 4.30 P.M at 9 2013-14 45,000.00 Registered Office, CESC, Mysore Extraordinary General Meeting of the Shareholders of the Company held on Wednesday the 30th March 2016 at 10 2015-16 60,000.00 11.15 A.M. at the Room No. 222, Vikasa Soudha, Bangalore Extraordinary General Meeting of the Shareholders of the Company held on Tuesday the 17th January 2017 at 6.00 11 2016-17 75,000.00 P.M. at Conference Hall, KPTCL. Kaveri Bhavan, Bengaluru-560009.

Terms and rights attached to equity shares The company has only one class of equity shares having a par value of `10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive the assets of the company, in proportion to the number of equity shares held by the shareholders.

1.6 Details of Share Holding of More than 5% (` in Lakhs)

Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code

Number of Percen Number of Percen Shares tage Shares tage Hon’ble Governor, 1 508565428 99.99 508565428 99.99 State of Karnataka

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NOTE: 02 RESERVES AND SURPLUS (` in Lakhs)

Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code Capital Reserve: 56.2 239.17 239.17 239.17 239.17

As per Last Balance Sheet 2.1 Add: Additions during the year Less: Utilised during the year Others

2.2 Proposed adjustment to 52.3047 (3,401.01) (3,401.00) 0.00 - networth Account

Profit and Loss Account (Surplus) As per Last Balance 2.3 58.2007 (63,426.58) (64,218.86) Sheet Add: Additions during P &L A/c 2,144.37 792.28 the year (61,282.21) (63,426.58)

Contribution,grants 2.4 and subsidies towards cost of Capital assets

Consumers 55.1007 2.4.1 Contributions towards to 68,222.20 55,536.13 cost of Capital assets 55.1167

REC-RGGVY Scheme 2.4.2 55.2037 16,447.16 16,559.81 subsidy A/C Grant towards cost of 2.4.3 55.3037 1,028.00 capital assets - IPDS Grant towards cost of 2.4.4 capital assets - 55.3047 1,673.05 DDUGJY

55.3007+ Special Grant Towards 2.4.5 55.5007+ 6,109.69 5,699.55 Capital works (GOK) 55.3017+

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Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code 55.2007+ 55.3027 Total Grants, 93,480.09 77,795.49 Contribution & Subsidy Less Reversal of 2.4.6 55.9607 22,640.56 70,839.54 18,118.88 59,676.60 Depreciation TOTAL 6,395.50 (3,510.81)

Pursuant to GOK order No EN 67 PSR 2017 Banagalore Dated 31.07.2017, for transfer of outstanding power purchase cost of ` 888.89 crores, interest of ` 467.52 crores relating to M/s. KPCL in the books of M/s. KPTCL along with subsidy of ` 986.50 crores receivable from Government by M/s. KPTCL for the period prior to 9th June 2005 to ESCOMs, 9.1933% of the total share of all ESCOMs was allocated to CESC towards subsidy dues of KPTCL and Power Purchase dues including interest of KPCL. Vide the above Order, the Company has accounted ` 90.69 Crores subsidy to be received as Receivable from GoK, ` 81.72 Crs as Power Purchase dues of M/s. KPCL and ` 42.98 Crs as interest on Power Purchase dues payable to M/s. KPCL during the financial year 2016- 17. Further, the Order has also directed write back the interest to account the difference in receivables and payables resulting from the above transaction under ‘Proposed Adjustment to Net Worth Account’, which have also been complied.

NOTE: 03 SHARE DEPOSIT(SHARES PENDING ALLOTMENT) (` in Lakhs) Account Sl.No Particulars As At 31.3.2017 As At 31.3. 2016 Code Share Deposit from 3.1 52.3037 15,229.00 1400.00 GOK Pending Allotment TOTAL 15,229.00 1,400.00

Share Deposit Pending allotment

GoK in its order no: EN58 PSR 2013 Bangalore dated 23.09.2013 has accorded approval for Equitable Distribution of ` 70.00 Crs paid towards 50% of the cost of power block of Jurala Hydro Electric Project among Electricity Supply Companies. 3.2 The amount was paid by PCKL to Andra Pradesh Power Generation Corporation Ltd on behalf of ESCOMs. The share of CESC amounting to ` 14.00 Crs is accounted as Share deposit received from GoK.

Pending allotment of shares by the company the following amounts received from GoK towards equity are held under share deposit (Share pending allotment)

98 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

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Equtiy received details

3.3 EN 27 PSR 2016 Bangalore, Dated, 31.05.2016 `30.00 Crs

3.4 EN 10 PSR 2016 Bangalore, Dated, 27.06.2016 `2.70 Crs

3.5 EN 27 PSR 2016 Bangalore, Dated, 31.08.2016 `20.00 Crs

3.6 EN 23 PSR 2016 Bangalore, Dated, 01.09.2016 `16.25 Crs

3.7 EN 10 PSR 2016 Bangalore, Dated, 17.09.2016 `2.70 Crs

3.8 EN 27 PSR 2016 Bangalore, Dated, 07.12.2016 `20.00 Crs

3.9 EN 10 PSR 2016 Bangalore, Dated, 24.12.2016 `2.70 Crs

4.0 EN 23 PSR 2016 Bangalore, Dated, 24.12.2016 `8.13 Crs

4.1 EN 10 PSR 2016 Bangalore, Dated, 31.01.2017 `2.70 Crs

4.2 EN 23 PSR 2016 Bangalore, Dated, 03.02.2017 `8.11 Crs

4.3 EN 27 PSR 2016 Bangalore, Dated, 09.02.2017 `25.00 Crs

NON CURRENT LIABILITIES:

NOTE: 04 LONG TERM BORROWINGS (` in Lakhs)

Account Sl.No Particulars As At 31.3.2017 As At 31.3. 2016 Code

4.1 TERM LOANS

4.1.1 SECURED LOANS

4.1.1.1 From Commercial Banks 53.5077 4717.82 7067.79

4.1.1.2 From Syndicate Bank CAPEX 53.5037 6250.00 7916.67

4.1.1.3 From Syndicate Bank CAPEX 53.5007 11395.79 5060.00

From SBM Bank Short Term 4.1.1.4 53.5047 Loan PP Dues 5265.98 4996.00 From Syndicate Bank Short 4.1.1.5 53.5067 Term Loan 0.00 5550.92 4.1.1.6 From PFC R-APDRP 53.9617 Part A and Part B GOI Loan 4357.37 4357.37 4.1.1.7 From PFC R-APDRP 53.5097 4085.41 4120.87 Part B Counter part 4.1.1.8 From REC NJY Phase 1&2 53.5107 41796.17 36606.37 project

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4.1.1.9 From REC CAPEX FY 13-14 53.3007 4199.30 4199.30

4.1.1.10 From REC Medium Term Loan 53.5057 0.00 3055.56

4.1.1.11 From REC (Medium Term) 53.5117 13333.33 0.00

4.1.1.12 From Bank of India (Capex) 53.5127 0.00 0.00

4.1.1.13 From Syndicate Bank - UNIP 53.5137 3000.00 (Long Term) 0.00 Sub-Total 98401.17 82930.84

4.1.2 UN-SECURED LOANS

4.1.2.1 From Banks

4.1.2.2 From GOK Energisation of IP 53.9777 - 0.00

4.1.2.3 From GOK APDRP loan 53.3047 1072.64 1287.27

4.1.2.4 From REC APDRP 53.3057 140.26 140.26

4.1.2.5 From REC RGGVY 53.9677 789.97 971.87

Sub-Total 2002.86 2399.40

TOTAL 100404.03 85330.24

At the time of unbundling of transmission and distribution activities and formation of Electricity Distribution Companies, the Government of Karnataka

has transferred certain loans taken by M/s KPTCL to the Company as part of 4.2 transfer of assets and liabilities. The interest Payment as intimated by KPTCL has been charged off in the books of accounts since the assets have been commissioned. 4.3 The loan balances between KPTCL and Company is subject to reconciliation and Confirmation

4.4 The details of the loan with the terms and conditions that are transferred to CESC from KPTCL, are yet to be received, except the loans directly borrowed

by the Corporation.

4.5 The repayments towards principal and interest as noted above routed through KPTCL, the interest on such loans are also accounted based on intimation by

KPTCL

PFC R-APDRP Part A & B GOI loans are eligible for conversion into grants 4.6 under the terms of sanction our achievement of stipulated target. The period for achievement of target is not over.

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4.7 Reconciliation of loan Balances (` in Lakhs)

Rate of Opening Loans Repayment Charge Tenure Total Loan Sl. Name of the Bank/ A/c No. of Repayment Interest as on Balance as Drawn of Loan Creation ID of Loans Balance as No. Financial Institution Code installments Terms 31.3.2017 (In on During during & Date Loan 2016-17 on 31.3.2017 %) 01.04.2016 2016-17 2016-17

I Term Loan Secured

A Loans from -Commercial Banks

Synd Bank-Capex Monthly (Secured by 10615318 / 60 Monthly Repayment & 1 53.5007 2+5 10.60 5060.00 6835.79 11895.79 0.00 11895.79 Hypothecation against 29.12.2015 installments Last installment Created Assets) due on 12/2022

Monthly SBM- PP dues. 100026108 / 36 Monthly Repayment & 2 (Secured by Receivables 53.5047 3 10.90 2900.00 7100.00 10000.00 3058.00 6942.00 31.03.2016 installments Last installment against CESC Revenue) due on 03/2019

Monthly SBM- PP dues. 10593179 / 36 Monthly Repayment & 3 (Secured by Receivables 53.5047 3 11.30 8332.00 0.00 8332.00 3336.02 4995.98 21.09.2015 installments Last installment against CESC Revenue) due on 09/2018

Monthly SBM-UNIP 10332143 / 72 Monthly Repayment & 4 (Secured by Created 53.5077 3+6 12.65 8053.84 0.00 8053.84 1668.02 6385.82 16.01.2012 installments Last installment Assets) due on 01/2021

SBM-Capex programme. Monthly 5 53.5077 10242976 / 2+5 60 Monthly 11.65 2085.95 0.00 2085.95 1404.00 681.95 (Secured by Repayment &

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4.7 Reconciliation of loan Balances (` in Lakhs)

Canara Bank-Capex Quarterly (May, Aug, Nov and (Secured by 10171461 / 6 53.5077 7 Feb of Every year) & Last 11.9 694.26 0.00 694.26 694.26 0.00 Hypothetication against 29.06.2011 installments due on 06/2018 Created Assets)

Synd Bank-PP dues. Monthly (Secured by Receivables 10496189 / 36 Monthly Repayment & 7 53.5077 3 11.35 7017.86 0.00 7017.86 7017.86 0.00 by Chamundipuram Sub- 29.03.2014 installments Last installment division Revenue) due on 03/2017

Synd Bank-Capex Monthly (Secured by 10545237 / 72 Monthly Repayment & 8 53.5037 1+6 11.35 9583.33 0.00 9583.33 1666.67 7916.67 Hypothetication against 31.12.2014 installments Last installment Created Assets) due on 12/2021

Synd Bank-PP dues Monthly (Secured against Tariff 10564836 / 35 Monthly Repayment & 9 53.5067 3 11.35 11101.84 0.00 11101.84 6013.50 5088.34 Subsidy Released by 31.03.2015 installments Last installment GOK) due on 03/2018

SBM-Over Draft. Modified 10 (Secured by Receivables 50.2107 10445357 / Overdraft Account 11.35 4157.85 15688.52 19846.37 0.00 19846.37

from State Bank of 23.05.2015

102 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

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4.7 Reconciliation of loan Balances (` in Lakhs)

Monthly Syndicate Bank Term 60 Monthly Repayment & 11 Loan - For 53.5137 2+5 9.75 0.00 3000.00 3000.00 0.00 3000.00 installments Last installment Regularisation of UNIP due on 03/2024

Monthly Repayment & Last Bank of India Term 84 Monthly 12 53.5127 3+7 installment due on 9.75 0.00 2000.00 2000.00 0.00 2000.00 Loan - CAPEX installments 03/2027 & 3 Year Moratorium

B Loans from Other Financial Institutions

GoI-Though M/s PFC- Annually R-APDRP Part-A (Between June & 10265935/ 10 Annual 1 (Secured by 53.9617 10 March) & Loan 9.00 1663.97 0.00 1663.97 0.00 1663.97 20.12.2010 Installments Hypothecation against Closed on Created Assets) 12/2020

GoI-Though M/s PFC- Monthly R-APDRP Part-B 10265936/ 10 Annual Repayment Bases 2 53.9617 20 9.00 2693.40 0.00 2693.40 0.00 2693.40 (Secured by 20.12.2010 Installments (From June to Hypothecation against March of Every

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4.7 Reconciliation of loan Balances (` in Lakhs)

M/s PFC-R-APDRP Part-B Counter Part Principal and Loan ( Secured by 10406889/ 10 Annual Interest Quarterly 12.00 & 3 53.5097 5+10 4479.20 369.00 4848.20 373.71 4474.49 Created Assets+10% of 4.2.2013 Installments & Last Installment 10.75 Existing Assets of due on 02/2028 Hunsur Division

M/s REC- NJY Phase-1 Principal Annually 11.50 & Project. (Secured by 10401139/ 10 Annual Interest Quarterly 4 53.5107 3+10 12.25 & 6232.46 613.70 6846.16 684.62 6161.54 Hypothecation against 5.1.2013 Installments & Last Installment 11.00 Created Assets) due on 01/2026

10445166/ 2.8.2013, 10467307/ Principal Annually M/s REC- NJY Phase-2 11.50 & 2.12.2013, 10 Annual Interest Quarterly 5 Project. (Secured by 53.5107 3+10 12.00 & 30997.16 9357.55 40354.72 0.00 40354.72 10490841/ Installments & Last Installment Created Assets) 12.25 17.3.2014, due on 02/2028 10554852/ 17.2.2015

6 M/s REC- Capex 53.3007 10518409/ 2+5 10 Annual Principal Annually 12.00 &12.25 4199.30 4199.30 0.00 4199.30

104 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

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4.7 Reconciliation of loan Balances (` in Lakhs)

M/s REC- Assets Monthly Hypothicated of Hunsur 10554858/ 36 Monthly Repayment Bases 7 53.5057 3 12.75 6388.89 6388.89 3333.33 3055.56 Division to the extent of 16.2.2015 installments & Last installment Loan due on 02/2018

Monthly M/s REC - Short Term 12 Monthly Repayment Bases 8 53.3017 1 12.00 0.00 10000.00 10000.00 5833.33 4166.67 Loan for PP Dues (New) installments & Last installment due on 08/2017

Monthly M/s REC - Medium Term 36 Monthly Repayment Bases 9 Loan for PP Dues (New) 53.5117 3 12.00 0.00 10000.00 10000.00 0.00 10000.00 installments & Loan Closed on 21.03.2017 03/2020

Monthly M/s REC - Medium Term 36 Monthly Repayment Bases 10 Loan for PP Dues (new) 53.5117 3 12.00 0.00 10000.00 10000.00 0.00 10000.00 installments & Last installment 31.03.2017 due on 03/2020

Total Secured Loan 115641.32 74964.56 190605.87 35083.32 155522.55

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4.7 Reconciliation of loan Balances (` in Lakhs)

II Un-Secured Loan

Annually GoK-Transferred from 1 53.9777 10 Repayment Annually (April) 11.00 23.30 23.30 23.30 0.00 KPTCL (April)

Annually Annually (March) 2 GoK- APDRP 53.3047 20 Repayment 11.50 1501.80 1501.80 214.63 1287.17 & Loan Closed (March)

M/s REC- APDRP- Principal and 3 53.3057 10 Quarterly 8.5 - 10 1003.57 1003.57 863.31 140.26 Works Interest Quarterly M/s REC- RGGVY 10 Annual Principal Annually 10.75, 11.50 4 53.9677 15 1153.77 1153.77 181.90 971.87 Projects Installments Interest Quarterly & 11.25 Total Un-Secured Loan 3682.44 0.00 3682.44 1283.14 2399.30

Total - Secured & Un-Secured Loan 119323.76 74964.56 194288.31 36366.46 157921.85

Term Loan due for repayment in next year 29835.67 33504.78 (Shown as current Liabilities in Note:10) Short Term Loan due for repayment in next 4157.85 24013.03 year (Shown as current Liabilities in Note:8) Net Long Term Loan (Note-4) 85330.24 100404.03

106 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

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NOTE: 05 DEFERRED TAX LIABILITIES (NET) (`in Lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code Deferred Tax Liability / 5.1 46.8027 9074.61 7169.05 Assets (Net) TOTAL 9074.61 7169.05

Considering the future earning capacity and other relevant considerations and as a 5.2 matter of prudence DTA on carry forward of losses is not considered.

NOTE: 06 OTHER LONG TERM LIABILITIES (` in Lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3. 2016 No Code 6.1 Others

6.1.1 Security Deposits from Consumers 6.1.2 Meter Security Deposits 47.6017 to 2632.63 2608.73 47.6047 6.1.3 Initial/Additional Security 48.1017 to 49482.88 44338.91 Deposits 48.1037 Sub-Total 52115.50 46947.64

6.2 KPCL, KPTCL & Other ESCOMs 6.2.1 KPTCL/VVNL 42.2147+ 42.2247+ 42.2297+ 1502.78 1505.28 42.2197+ 42.2037+ 42.2127 6.2.2 BESCOM 42.2157+ 42.2257+ 63.71 63.76

42.2207 6.2.3 MESCOM 42.7657+ 42.8787+ 28.73 28.73

42.2167 Sub-Total 1595.22 1597.77

6.3 Staff related Liabilities

6.3.1 Security Deposit from 46.9207 1.00 1.17 employees 6.3.2 Provision for Earned 44.1307 0.76 0.76 leave encashment Sub-Total 1.76 1.93

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NOTE: 06 OTHER LONG TERM LIABILITIES (` in Lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3. 2016 No Code 6.4 Liability to Suppliers and Contractors 6.4.1 Security Deposits from 46.1017, 1941.73 1299.59 Suppliers/ Contractors 46.1027 6.4.2 Retention Money 46.1047 5848.48 5632.97

6.4.3 Penalty recovered from 46.1097 0.00 0.00 supplier / contractor Sub-Total 7790.21 6932.56

6.5 Payables to GOK

6.6 BRP-11 recoveries 46.2067 298.03 298.03

Sub-Total 298.03 298.03

6.7 Others

6.7.1 Miscellaneous deposits 46.9667 37.22 83.21

Sub-Total 37.22 83.21

TOTAL 61837.94 55861.14

6.8 The balance of consumers security deposit held as per accounts and consumers ledger accounts are subject to reconciliation. 6.9 Transaction with KPTCL / ESCOMs are accounted as payables are subject to confirmation and reconciliation.

NOTE: 07 LONG TERM PROVISIONS (` In lakhs) Sl. No. Particulars Account Code As At 31.3.2017 As At 31.3.2016 7.1 Provision 46.8017, 7.1.1 Provision For IT / FBT - - 46.8007 TOTAL 0.00 0.00

CURRENT LIABILITIES NOTE: 08 SHORT TERM BORROWINGS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code 8.1 Bank Overdraft 8.1.1 Secured by Receivables

8.1.2 State Bank of Mysore-OD 50.2107 19846.37 4157.85

From REC-Shortterm loan 8.1.3 53.3017 4166.67 ` 100 Crs TOTAL 24013.03 4157.85

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NOTE: 09 TRADE PAYABLES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code Liability For Purchase 9.1 Of Power 9.1.1 M/s KPCL 41.1087 114859.09 97179.93

M/s NTPC – RSTPS STG 9.1.2 41.1107 2602.32 756.71 I & II M/s NTPC – RSTPS – 9.1.3 41.1117 524.70 236.18 STG III 9.1.4 M/s NTPC Talcher STG II 41.1127 1726.25 537.64

9.1.5 M/s MAPS 41.1137 103.76 -

9.1.6 M/s NLC - TPS I EXPN 41.1147 769.10 246.83

9.1.7 M/s NLC - TS II 41.1157 2333.10 610.93

M/s PGCIL -UI Pool 9.1.8 41.1167 1537.05 1590.10 Account 9.1.9 M/s Kaiga 41.1177 1818.04 4.05

9.1.10 M/s GMR ENERGY Ltd. 41.1187 - -

9.1.11 M/s JSW PTCL 41.1217 3653.09 212.68

M/s Coromandel Sugars 9.1.12 41.1237 13.09 136.71 Ltd M/s Hemavathi Power & 9.1.13 41.1337 2.52 - Light PVT. Ltd - II (HRB) M/s Sri Chamundeshwari 9.1.14 41.1377 12.90 - Sugars Ltd M/s KPTCL Transmission 9.1.15 41.1397 5549.67 3060.77 Charges M/s PGCIL Transmission 9.1.16 41.1407 2961.73 1221.57 Charges M/s SLDC - O & M 9.1.17 41.1427 692.56 672.78 Expenses M/s SPPCC - O & M 9.1.18 41.1437 51.25 - Expenses 9.1.19 M/s TBHE 41.1457 33.87 -

Energy Balance A/C - 9.1.20 41.1467 14356.95 4108.65 BESCOM Energy Balance A/C - 9.1.21 41.1477 2256.88 2575.17 MESCOM 9.1.22 M/s PTC India Ltd 41.1607 2585.03 289.71

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NOTE: 09 TRADE PAYABLES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code M/s Lanco Utility Ltd 9.1.23 41.1617 289.29 289.29 (Open Access) M/s Sapthagiri Distilleries 9.1.24 41.1717 18.02 - Pvt Ltd 9.1.25 M/s The Chennai Silks 41.1757 - 13.94

M/s Happy Valley 9.1.26 41.1797 4.00 1.69 Developers M/s Rathnagiri Impex Pvt 9.1.27 41.1817 3.94 - Ltd M/s Atria Brindavan 9.1.28 41.1977 0.80 - Power Ltd-2 MHS Provision for liability for 9.1.29 41.2007 103113.01 100906.40 purchase of power

9.1.30 M/s NTPC VVNL (IPP) 41.4017 148.69 -

M/s Friends Salt Works & 9.1.31 41.4107 0.82 - Allied Industries GP-16 M/s Durga Agencies, GP- 9.1.32 41.4147 5.68 18.64 19 9.1.33 M/s UPCL 41.4187 6323.13 1901.66

M/s NTPC Simhadri 9.1.34 41.4257 1170.47 471.35 Thermal Power Station M/s TATA power trading 9.1.35 41.4267 5.40 1154.94 company ltd (M/s TPTCL) M/s Non PPA power 9.1.36 41.4307 71.80 39.21 Generators 9.1.37 M/s BMM ISPAT ltd., 41.4357 200.00 829.81

M/s NSL Sugars 9.1.38 41.4387 40.33 89.63 (Tungabhadra) Ltd., 9.1.39 M/s Vijayanagara Sugars 41.4407 8.00 -

M/s NTPC Tamilnadu 9.1.40 Energy Company Ltd 41.4417 1562.98 -

(Vallur TPS) 9.1.41 M/s Sathish Sugars Ltd., 41.4477 - 111.34

M/s Sai Nireeha Power 9.1.42 41.4497 6.83 0.39 Project Pvt Ltd.

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NOTE: 09 TRADE PAYABLES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code M/s Kudankulam Nuclear 9.1.43 41.4517 653.20 64.81 Power Project 9.1.44 M/s NTPC-VVNL (Solar) 41.4527 557.21 -

M/s Priyadarshni Jurala 9.1.45 41.4537 108.61 513.64 Hydro Electric Scheme) 9.1.46 M/s Athani Sugars Ltd 41.4547 - 135.85

9.1.47 M/s Nirani Sugars Ltd 41.4557 48.80 126.56

9.1.48 M/s NLC - TPS II Exp 41.4577 625.74 24.93

M/s NLC Tamilnadu 9.1.49 41.4587 1813.59 - Power Ltd M/s Madhav Solar 9.1.50 (Karnataka) Pvt. Ltd 41.4607 59.94 58.81 (Project-1) M/s Madhav Solar 9.1.51 (Karnataka) Pvt. Ltd 41.4617 62.34 61.01

(Project-2) M/s Mittal Prosessors Pvt 9.1.52 41.4627 102.58 351.68 Ltd M/s Balkeshwara Sugars 9.1.53 41.4637 8.66 43.23 Ltd Purchase of power from 9.1.54 41.4647 1747.63 5790.30 IPPs under section 11 M/s Damodar Valley - 9.1.55 41.4657 3424.67 Corporation M/s Emami Power Limited - 9.1.56 41.4667 126.45 (Solar) M/s Chikku Energy Private - 9.1.57 41.4677 45.06 ltd (Solar) M/s CBM Enterprises - 9.1.58 41.4687 45.21 (Solar) M/s Maharastra State - 9.1.59 Electricity Distribution 41.4697 1238.91

Company Ltd M/s Core Green Sugar & - 9.1.60 41.4707 14.67 Fuels Pvt Ltd 9.1.61 M/s E.I.D Parry (India) Ltd 41.4717 38.62 -

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NOTE: 09 TRADE PAYABLES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code 9.1.62 M/s GEM Sugar Ltd 41.4737 43.32 -

M/s Godavari Bio - 9.1.63 41.4747 99.96 Refineries Ltd M/s Jamkhandi Sugars - 9.1.64 41.4757 59.87 Ltd M/s KPR Sugar Mills Pvt 9.1.65 41.4767 34.90 - Ltd 9.1.66 M/s Manali Sugars 41.4777 1.52 -

M/s Shiraguppi Sugar 9.1.67 41.4787 7.31 - Works Ltd M/s Sri Prabhulineshwar 9.1.68 41.4797 38.42 - Sugars & Chemicals M/s Shivashakthi Sugars 9.1.69 41.4807 38.05 - Ltd M/s Shree Renuka Sugars 9.1.70 41.4817 19.12 - Ltd M/s Soubhagyalakxmi 9.1.71 41.4827 3.91 - Sugars Ltd M/s Saketh Solar Energy 9.1.72 41.4837 38.16 - LLp Ltd (Solar) M/s Gorich Energy Pvt Ltd 9.1.73 41.4847 15.11 - (Solar) M/s A.V. Anjaneya Prasad 9.1.74 41.4857 9.21 - (Solar) M/s SLDC, KPTCL 9.1.75 41.4937 2.62 - (Congestion Charges) Liability for Purchase of 9.1.76 Power from Solar Roof 41.5007 3.99 0.96

Top Payable to BESCOM - 9.1.77 42.2907 4240.04 5106.29 Power Purchase Payable to MESCOM- 9.1.78 42.2917 7.00 7.00 Power Purchase TOTAL 286800.53 231553.78

9.2 Balances in respect of Trade Payables are subjected to confirmation 9.3 Dues to MSME :- Nil

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 113

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NOTE 10: OTHER CURRENT LIABILITIES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code Current Maturities of 10.1 Long Term Debts Term Loan Installment 10.1.1 due for repayment within One year Loans installment due to 10.1.1.1 53.5077 2349.95 3766.26 Commercial Banks Loans installment due GOK 10.1.1.2 53.9777 - 23.30 Loan Energisation of IP From REC - Shorterm loan 10.1.1.3 53.3017 - - `100 Crs Loans installment due to 10.1.1.4 53.3047 214.53 214.53 GOK APDRP Loans installment due to 10.1.1.5 53.3057 0.00 863.31 REC APDRP Loan installment due to 10.1.1.6 53.9677 181.90 181.90 REC RGGVY 10.1.1.7 Loan from Syndicate Bank 53.5007 500.00 0.00

Loan installment due to 10.1.1.8 PFC (APDRP) Part B 53.5097 389.09 358.34

Counter Part Loan Loan installement due to 10.1.1.9 PFC (APDRP) Part B 53.9617 0.00 0.00

Counter part loan Loan Installement due to 10.1.1.10 53.5107 4720.09 623.25 REC NJY Loan Loan Installement due to 10.1.1.11 Syndicate Bank for CAPEX 53.5037 1666.67 1666.67

FY 14-15 From SBM Bank Short 10.1.1.12 53.5047 3336.00 2900.00 Term Loan - PP Dues From SBM Bank Short 10.1.1.13 53.5047 3336.00 3336.00 Term Loan - PP Dues 10.1.1.14 REC (M.T.L) 53.5057 3055.56 3333.33

State Bank of Mysore 10.1.1.15 53.5067 5088.34 5550.92 (S.T.L) 10.1.1.16 Syndicate Bank (S.T.L) 53.5077 0.00 7017.86

10.1.1.17 From REC (Short Term) 53.5117 6666.67 0.00

114 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

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NOTE 10: OTHER CURRENT LIABILITIES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code From Bank of India 10.1.1.18 53.5127 2000.00 0.00 (Capex) Sub-Total 33504.78 29835.67

Interest Accrued but not 10.2 due on Borrowings 10.2.1 Interest Accrued but not 46.7107 2802.49 2802.49 2776.03 2776.03 due on Borrowings 10.3 Other Payables

Liability for supply of 10.3.1 42.1017 2269.07 2863.64 Materials Sundry creditors/Control 10.3.2 42.2017 1374.77 1268.43 Account Liability for supply of 10.3.3 42.3017 - - materials Contractors Control 42.4017 10.3.4 7837.72 6993.16 Account 42.7017 10.3.5 Liability to Contractors 42.5017 591.97 624.73

Sub-Total 12073.54 11749.95

10.4 Statutory Dues

Income tax deducted at 10.4.1 source on payment to 46.9247 104.99 152.17

Contractors Sales tax deducted at 10.4.2 source and payable to 46.9277 22.70 186.63

department 46.9267+ 10.4.3 Sales tax payable 2.15 (1.24) 46.9517 10.4.4 Service Tax 46.9217 12.47 70.47

Amount recoverable from 10.4.5 46.9287 0.60 6.47 Salaries of Corpn. Emp Swachh Bharath Cess 0.5% on value of services& 10.4.6 1.13 2.45 Krishi Kalyan CESS 0.5% 46.9297 on value of services Amount Deducted from 46.9307+ 10.4.7 Contractors PF ESI and 46.9317+ 1.18 3.96

cess 46.9327

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NOTE 10: OTHER CURRENT LIABILITIES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code Building or other 46.9427+ 10.4.8 construction workers 1.88 8.19 46.6427 welfare fund Duty & Taxes Payable to 10.4.9 46.4707 0.38 0.68 GoK., Sub-Total 147.47 429.77

Employee related 10.5 liabilities 44.1107+ Liability towards Pension & 10.5.1 44.1207+ 2255.80 2262.58 Gratuity Trust 44.1227 44.1417+ 10.5.2 Liability towards FBF 44.1427+ 708.66 675.72 44.1437 Liability towards contribution to Newly 10.5.3 44.1507 6.60 1.32 defined Contributory Pension scheme Pension and Leave contribution from employees 10.5.4 for counting their past 44.2757 0.03 0.03

service in other dept., & payable to P & G Trust 10.5.5 Unpaid Salaries 44.2107 0.03 0.18

10.5.6 Unpaid Bonus 44.2207 0.10 0.06

10.5.7 Salary Payable 44.3107 346.56 26.19

10.5.8 Bonus Payable 44.3207 62.04 57.04

10.5.9 Ex-gratia Payable 44.3307 331.34 492.64

10.5.10 Sundry expenses 46.4107 100.28 93.10

For T.A to Contract 10.5.11 46.4117 1.00 0.50 employees Sub-Total 3812.43 3609.35

10.6 Payables to GOK

Electricity Tax(yet to be 10.6.1 46.3007 4486.62 3933.89 collected from consumers) 10.6.2 Compounding Fee 46.3017 0.61 3.28

116 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

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NOTE 10: OTHER CURRENT LIABILITIES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code Inspection Charges 10.6.3 46.4407 0.12 0.11 payable to Govt. 10.6.4 Royalty payable to Govt. 46.4507 0.66 1.12

Sub-Total 4488.01 3938.40

10.7 Payables to Consumers

10.7.1 Interest on ISD/ASD 48.3407 3627.73 3482.06

10.7.2 Interest on MSD 48.3507 183.29 325.64

Sub-Total 3811.02 3807.71

10.8 Others

Security Deposits in cash 46.1017+ 10.8.1 655.84 264.37 from Suppliers/ Contractors 46.1027 10.8.2 Retention Money 46.1047 4787.40 2853.60

Penalty recovered, pending 10.8.3 46.1097 231.66 97.43 decision for refund 10.8.4 Liability for expenses 46.4307 2175.98 2684.32

10.8.5 Stale Cheques 46.9107 12.77 14.56

Advance received for sale 10.8.6 46.9227 99.96 4.02 of store scrap etc., CFL Lamps issued under 10.8.7 47.5007 276.83 234.68 BELAKU YOJANE Contributory Pension 46.9537 10.8.8 201.56 113.14 scheme 46.9527 Amount recoverable from 10.8.9 employee payable to 46.9547 65.68 64.82 Employee Welfare Fund Employees PF and 10.8.10 Departmental Share of PF 46.9577 1.77 1.75 Payable Account Excess Credit afforded by 10.8.11 Bank pending 46.9717 82.99 11.53 reconciliation-SBM Excess Credit afforded by 10.8.12 Bank pending 46.9747 6.06 0.15 reconciliation-Canara Bank 10.8.13 Flood Relief fund 47.9787 0.01 0.01

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NOTE 10: OTHER CURRENT LIABILITIES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code 47.3017 Electrification/ Service 10.8.14 to 457.50 432.22 Connection 47.3047 Amount payable to other 47.3 10.8.15 departments against DCW 4783.54 3994.84 series works 10.8.16 Revenue Suspense 47.6077 692.63 564.82

Revenue collection 10.8.17 47.6097 143.87 0.00 pending classification Stock Excess pending 10.8.18 22.8207 3.40 3.40 investigation Receivable others - Belaku 10.8.19 28.8847 17.76 25.61 Yojane Advance Paid to SPPCC towards UI Charges 10.8.20 28.9457 - - (Unscheduled interchange charges) Sundry debtors for other 10.8.21 28.1057 130.99 1154.00 Misc income Amount recoverable from 10.8.22 28.4027 1.59 1.90 Ex-employees Claims for loss / damage to 10.8.23 28.7457 - 0.92 capital assets - suppliers 10.8.24 Inter Unit Accounts(Net) 31 to 37 23650.83 23651.45

Sub-Total 38480.62 36173.55

TOTAL 99120.36 92320.43

10.9 A sum of ` 224.77 crores were included in IUA balances which was transferred from MESCOM in opening Balance Sheet. 10.10 Some of the issues accounted, which requires GOK approval for altering the networth transfers. All efforts will be made to clear the accounting entry duly consulting MESCOM and KPTCL since triangular transfers are involved.

NOTE: 11 SHORT TERM PROVISIONS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code 11.1 Provision for Income Tax 46.8017 588.99 - TOTAL 588.99 -

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NOTE 12: TANGIBLE A S S E T S (` in Lakhs) Gross Block Depreciation Net Block A/C As at As at As at As at As at As at Assest Group Additions Deductions Additions Deductions Head 31-03-2016 31-03-2017 31-03-2016 31-03-2017 31-03-2016 31-03-2017 Land-Free hold 10.1 245.12 95.94 0.00 341.06 0.00 0.00 0.00 0.00 245.12 341.06 Land Held Under 10.1 40.32 0.00 0.00 40.32 8.62 1.32 0.00 9.94 31.70 30.38 Lease Buildings 10.2 7053.80 786.70 0.00 7840.50 1318.28 259.74 0.00 1578.01 5735.52 6262.49 Hydraulic Works 10.3 193.01 51.35 0.00 244.36 61.31 12.91 0.00 74.22 131.70 170.14 Other Civil Works 10.4 71.67 25.75 0.00 97.41 19.30 2.88 -0.02 22.20 52.37 75.21 Plant & Machinery 10.5 56173.51 19363.32 6945.64 68591.19 8110.45 3769.01 1015.81 10863.66 48063.06 57727.53 Computers 10.5 1342.56 315.21 184.74 1473.02 681.73 223.56 89.51 815.78 660.83 657.24 Lines Cable 10.6 192678.69 40762.23 1620.29 231820.62 59737.39 11177.87 1149.17 69766.09 132941.29 162054.53 Networks Vehicles 10.7 437.75 0.00 4.93 432.82 322.18 14.27 4.43 332.01 115.57 100.81 Furniture & 10.8 422.69 805.43 37.26 1190.86 206.82 27.48 13.23 221.07 215.87 969.79 Fixtures Office 10.9 956.35 112.73 47.36 1021.72 155.85 64.65 10.08 210.42 800.50 811.30 Equipements Tangible Assets 259615.45 62318.65 8840.21 313093.89 70621.92 15553.69 2282.22 83893.40 188993.53 229200.49 Total 2016-17 Tangible Assets 201569.49 67373.56 9327.60 259615.45 60190.08 12830.75 2398.90 70621.92 141379.42 188993.53 Total 2015-16 NOTE 13: INTABGIBLE A S S E T S Intangible Assets 18.10 216.81 800.51 1.01 1016.31 213.50 287.64 0.00 501.14 3.31 515.17 (Software) 16-17 Intangible Assets 18.10 216.81 0.00 0.00 216.81 213.50 0.00 0.00 213.50 3.31 3.31 (Software) 15-16 Note:- The fixed assets are capitalised on receipt of Commissioning reports from the designated authority concerned of the company and the depreciation is charged from the date of Commissioning in the books of accounts.

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13.1 METHOD OF ACCOUNTING 13.2 The Financial statements are prepared under Historical Cost convention, in accordance with the provisions of the Companies Act 2013, and also as per the provisions of Electricity (Supply) Act 1948, / Electricity Act 2003, in cases of inconsistency with the Companies Act 2013. 13.3 FIXED ASSETS 13.3.1 Fixed assets acquired / constructed are valued at actual cost of acquisition / construction or at standard rate as the case may be, during the current year. 13.3.2 Assets transferred by M/s. Karnataka Power Transmission Corporation Ltd, (KPTCL) at the time of transfer of Assets ` 566.77 Cr have been stated at the cost of transfer indicated by KPTCL in document. 13.3.3 In respect of Assets shared with KPTCL, the ownership and title vests with KPTCL and as such, they are not reflected in the books of accounts of the Corporation. But the share of maintenance expenditure in respect of such assets is charged to Profit & Loss account and the accounts system was not enabled to monitor the same. 13.3.4 Grants / subsidies received from the government or other authorities towards capital expenditure as well as consumers contribution to capital works are treated initially as capital reserve and subsequently adjusted as income in the same proportion as the depreciation written off on the assets acquired out of the grants. 13.3.5 The Corporation is in the process of transferring the titles of immovable assets that was transferred by KPTCL. Out of 182 Properties, 148 Nos have been transferred in the name of CESC for remaining 34 properties details annexed. 13.3.6 The Transformers released during the year are removed from assets account only when they are sent to stores. 13.3.7 The Fixed Assets are accounted as per Government of Karnataka Notification No. EN 08 PSR 2005 dated 05.06.2006 and EN/08/PSR/2005/11.05.2007 containing the intimation of Cost of assets and accumulated depreciation. Further depreciation has been provided on such assets as per CERC guidelines. 13.3.8 As per arms length agreement between KPTCL and the Corporation, certain Facilities and buildings owned either by KPTCL or by the Corporation is being utilized by both. The income and expenditure has not been recognized and provided for in respect of such shared assets. 13.3.9 The Corporation accounts,

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13.3.10 The released assets at written down value and such assets when issued for Capital works are categorized on completion of such works and in usable condition at written down value, and 13.3.11 The released assets that are not in usable condition treated as obsolete assets at written down value and included in other current assets. 13.3.12 Insuring fixed Assets:- Providing insurance on fixed assets involves huge expenditure and it is not economical, therefore fixed assets have not been insured. Sl. Name of Division Details of Immovable Asset in the No. where accounted property name of 1 Kadakola LM Camp KEB N.R.Mohalla, Mysore 2 Ayyarahally LM Camp KEB 3 Hullahally LM Camp KEB 4 Muguru LM Camp No title deeds Nanjanagudu available 5 Bettahally LM Camp KEB 6 Hunsur Sub-division KEB 7 Kattemalalavadi KEB 8 Periyapatna Sub-division KEB 9 K R Nagar Collection Center KEB Hunsur 10 Basavarajapura Camp No documents available 11 Saraguru Section Office KEB 12 Saraguru quarters colony KEB 13 Harave MUSS KEB 14 Chamarajanagara Chandakavadi Section office KEB 33kv MUSS 15 Malemahadeshwara Hills LM KEB Camp Kollegala 16 Kinakanahally LM Camp No title deeds available 17 Shanthinikethan KEB 18 MUSS Colony, Madikeri MUSS

19 Madikeri Madikeri Sub-division Office Chairman, Indian Corporation & Indian Union

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20 Somawarapete Section office Govt Property 21 Hanagalu Shettally KEB 22 Koodige Govt. 23 Shrimangala Section office KEB 24 Virajapete Section office MUSS 25 Tubinakere LM Camp KEB 26 Mandya Hulikere LM Camp In the name of Govt. School 27 Ravani LM Camp KEB Maddur 28 Kiragavalu Section office KEB 29 Hangarahally LM Camp KPTCL Pandavapura 30 Bidarahally LM Camp KEB 31 Old Electricity Colony (OEC) KEB Hassan 32 Dudda Section office KPTCL 33 Hally Mysore KEB 34 Holenarasipura Bachenahally Land is not available

NOTE: 14 CAPITAL WORKS IN PROGRESS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code Capital Works in 14 14.1 15615.21 16690.19 Progress Series Provision for Completed 15 14.2 1225.06 658.05 works Series Turnkey Contractors 14.3 26.6057 9178.75 8826.11 Control Account TOTAL 26019.02 26174.35

NOTE: 15 INTANGIBLE ASSETS UNDER DEVELOPMENT (` In lakhs) Account Sl. No. Particulars As At 31.3.2017 As At 31.3.2016 Code 15 CWIP-MMS 14.1727 351.20 0.00 TOTAL 351.20 0.00

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NOTE: 16 NON-CURRENT INVESTMENTS (` In lakhs) Account As At Sl. No Particulars As At 31.3.2017 Code 31.3.2016 16.1 Investments:- Long Term Investments- 16.1.1 (Un-Quoted at cost :- Trade Investment in Equity 16.1.1.1 Instrument Investment in share capital of 20.2717, 251.00 251.00 251.00 251.00 Power Company of 27.8117 Karnataka Limited (25100 eq.sh. of ` 1000 each) TOTAL 251.00 251.00

NOTE: 17 - DEFERRED TAX ASSETS (NET) (` In lakhs) Sl. Particulars Account Code As At 31.3.2017 As At 31.3.2016 No 17.1 Deffered Tax Asset 28.9507 NIL TOTAL - NIL

NOTE: 18 LONG TERM LOANS AND ADVANCES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code Secured, considred good

Advance / seed capital amount paid to Power 18.1 27.8017 - 4.69 Company of Karnataka limited TOTAL 0.00 4.69

NOTE: 19 -OTHER NON CURRENT ASSETS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code Secured, considred good Receivables from KPCL, 19.1 KPTCL and Other

ESCOMs

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NOTE: 19 -OTHER NON CURRENT ASSETS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code 28.8267+ 28.8317+ 28.8367+ 19.1.1 KPTCL / VVNL 3874.37 3575.21 28.8417+ 28.8817+ 28.8487 28.8437+ 28.8287+ 19.1.2 MESCOM 28.7656+ 1900.35 1900.35

28.7657+ 28.8787 28.8397+ 19.1.3 HESCOM 720.19 720.19 28.8837 28.8277+ 28.8377+ 19.1.4 BESCOM 8.01 8.07 28.8427+ 28.8827 Sub-Total 6502.93 6203.82

19.2 Other Receivables

28.8216+ 19.2.1 Income tax / FBT 67.22 28.8217 19.2.2 Deposit With Railways 28.9337 1.01 1.01

19.2.3 Deposit with Others 28.9357 2893.29 2519.35

Claims for loss / Damage 19.2.4 28.7297 0.29 4.71 to materials - others Claims for loss / Damage 19.2.5 28.7497 10.22 6.77 to capital assets - others Regulatory Asset - 19.2.6 28.9817 98244.60 34405.00 KERC Ganga Kalyana Scheme 19.2.7 47.3077 64.40 63.99 Deposit receivable GK Scheme Deposit 19.2.8 received for Backward 47.3087 3107.03 2106.04 Classes

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NOTE: 19 -OTHER NON CURRENT ASSETS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code GK Scheme Deposit 19.2.9 47.3097 880.72 594.73 receivable from KMDC GK Scheme Deposit 19.2.10 receivable from 47.3107 4731.19 2536.94 Karnataka State SC/ST

RGRHLL / Ashraya / 19.2.11 47.3157 156.52 134.57 Ambedkar Scheme Energisation of Rural WS 19.2.12 47.3167 1118.79 967.85 Scheme under RDPR Deposit contribution works deposit received 19.2.13 47.3177 1578.20 1331.49 from Government under SCSP

Deposit contribution works deposit received 19.2.14 47.3187 1871.49 838.46 from Government under SDP

Deposit contribution 19.2.15 works deposit received 47.3197 402.22 356.93 from Govt. under TSP GK Scheme deposit 19.2.16 received for Backward 47.3577 5.19 2.58

Classes CFL Lamps Received for 19.2.17 47.4007 287.94 253.63 BELAKU YOJANE Deposit Contribution works deposit received 19.2.18 from government under 47.7007 161.80

Roof Top Grid Connected Solar Photovoltaic system Sub-Total 115514.90 46191.26

TOTAL 122017.83 52395.08

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19.3 Under A/c 28.9187, the regulatory asset recognized on amounts allowed in tariff order of subsequent period and towards the provisional gap expected to be considered by KERC for recovery in subsequent years as on 31.03.2017 is as follows:

Non Current Asset - `982.44 Crs (Previous year : `344.05 Crs)

Other Current Asset - Nil (Previous year : `120.41 Crs)

19.4 Transaction with KPTCL / ESCOMs are accounted as receivables are subject to

confirmation and reconciliation

NOTE: 20 CURRENT INVESTMENTS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code 20.1 Current investments NIL TOTAL - -

NOTE: 21 INVENTORIES, STORES AND SPARES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code 21.1 Materials Stock Account

21.1.1 Materials Stock Account 22.6107 4965.36 6704.53

21.1.2 Material imprest Account 22.6417 3.48 3.48

Materials pending 21.1.3 22.6607 - - inspection 22.6807+ 22.7207+ 21.1.4 Other Materials Account 22.7307+ 6.22 16.92

22.7317+ 22.7607 Stock Shortage pending 21.1.5 22.8207 106.45 106.45 investigation Sub Total 5081.52 6831.39

TOTAL 5081.52 6831.39

21.2 (a) Upto 2016, inventories are valued at Standard Rate, which is determined by Corporation from time to time based on previous purchase price and prevailing market rates (published as O & M Schedule of Rates). The difference in actual cost of material received and standard issue rate represents “Material cost

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Variance”. At the end of the year debit balance if any, under “Material Cost Variance” is charged to Profit & Loss A/c and credit balance if any is transferred to reserve called Reserve from Material Cost Variance”. With implementation of AS-2 from 01.04.2016 the balance under Material cost variance reserve account has been transferred to income account. 21.2(b) Inventories - Stores and spares are valued at lower of cost determined on weighted average basis and net realizable value wherever applicable. Net Realizable value is the estimated selling price less estimated costs necessary to make sale. 21.2(c) In respect of the materials identified as scrap / obsolete by the competent authorities, the value of such materials shall be accounted at scrap rate or reduced by 90% of the existing value and 10% value shall be retained as the value of scrap / obsolete materials till its disposal.

NOTE: 22 TRADE RECEIVABLES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code 22.1 TRADE RECEIVABLES

For sale of Power-LT, 22.1.1 23.1 50031.97 80549.06 HT & Others For sale of Power-HT & 22.1.2 23.2 4943.43 5496.06 Others For sale of Power-Fuel 22.1.3 23.2917 358.07 394.17 Adjustment Cost For sale of Power- 23.3017, 22.1.4 4099.23 4271.81 Electricity Tax 23.3027 22.1.5 Unbilled Revenue 23.4 19035.78 17487.44

Misc Receipts from 22.1.6 23.7 39245.59 60581.04 Consumer Subsidy receivable from GOK towards BJ / KJ 22.1.7 28.6257 21943.88 12874.88 waiver amount and additional subsidy Subsidy receivable from 22.1.8 28.6267 250.53 0.00 GOK towards BJ / KJ Amount receivable from State Govt. towards free 22.1.9 28.6277 30328.71 5439.89 supply of Power to IP sets up to 10HP

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NOTE: 22 TRADE RECEIVABLES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code 22.1.10 Receivable from PCKL 28.9197 51630.83 221868.03 187094.35

Less:

Provision for withdrawal 22.1.11 23.8 137.80 157.97 of Revenue Demand Provision for Doubtful 22.1.12 Dues from consumers 23.9 5698.38 5836.18 5694.61 5852.59 (Credit Account) Net Receivables against 216031.85 181241.76 Supply of Power TOTAL 216031.85 181241.76

Outstanding for less than 22.2 6 months & considered 125017.18 104836.43

good Outstanding for more 22.3 than 6 months & 96850.85 82257.92

considered good

22.4 As per KERC Bangalore, Notification No: D/07/7 Dated 01.10.2007, KERC (Security Deposit) Regulations, 2007 Notified in Karnataka Gazette Dated 11.10.2007, Company is collecting additional security deposit collected till deposit held at credit falls short of average bill amount corresponding to 2 Months (2MMD) and at the end of FY-16 the company is having ` 52115.50 lakhs (PY ` 46947.64) as Security Deposit. The receivables to the extent of `5698.38 lakhs (PY ` 5694.61) is considered as bad & doubtfull debts & provided for in accounts. The balance Trade receivables can be recovered by enforcing rule of Disconnection, for the disconnected installations, by enforcing Recoveries of Dues Act- 1976- treating the arrears as Arrears of Land Revenue, wherever applicable.

22.5 In the account head 23.9, i.e. Provisions for bad & doubtful debts a sum of ` 3235 lakhs is also continued which is transferred from MESCOM.

22.6 Trade receivable includes the arrears of IP consumers below 10HP prior to 31.07.2008 is as below

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(` in lakhs)

Particulars Principal Interest Total

Closing Balance as on 31.07.2008 33158 10478 43636

Closing Balance as on 31.03.2017 31126 37197 68323

No Interest has been recognized on dues of IP sets consumers below 10HP from the year 2014-15

22.7 Pursuant to the scheme of securitization of receivables from Gram Panchayat vide GOK order no EN 3 PSR 2016/P-3 Dated 31.03.2017 in favour of M/s Power Corporation of Karnataka limited (PCKL) in respect of all ESCOMs, the Company had initiated action to transfer its debts outstanding from Gram Panchayats as at 31st March 2015 amounting to ` 516.31 Crores. Since the debts to be assigned / transferred in favour of M/s. PCKL are to be unencumbered, the Company had taken steps to release the encumbrance with their lenders and upon release of such encumbrance the debts will be assigned and transferred to M/s. PCKL in the ensuring year. Pending completion of formalities relating to encumbrance the debts owned by Gram Panchayats are shown under A/c head 28.9197 i.e Receivable from M/s. PCKL. Further, in compliance with the GOK Order, the interest charged on these receivables for the year 2015-16 amounting to `47.09 crores is written off and interest has not been charged during the year 2016-17.

NOTE: 23 CASH AND BANK BALANCES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code 23.1 Balances with Banks

Collecting Bank Accounts 23.1.1 24.3 786.04 786.04 815.18 815.18 (Non-Operative) Disbursement Bank Account 23.1.2 (Operative) Disbursement Bank (Operative) 23.1.3 Account - State Bank of Mysore 24.4117 15.44 121.28

(E-A/C) Disbursement Bank (Operative) 23.1.4 Account - State Bank of Mysore 24.4117 0.13 177.55

(CA-P&G Trust A/C) Disbursement Bank (Operative) 23.1.5 24.4117 3191.04 970.32 Account - State Bank of Mysore

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NOTE: 23 CASH AND BANK BALANCES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code Disbursement Bank (Operative) 23.1.6 24.4147 148.43 102.80 Account - Canara Bank Disbursement Bank (Operative) 23.1.7 Account - SBM (D.S.R.A) A/c 24.4117 0.09 0.00

(7156) Disbursement Bank (Operative) 23.1.8 Account - SBM (I.P.D.S) A/c 24.4117 1016.23 0.00

(64186438626) Disbursement Bank (Operative) 23.1.9 Account - SBM (DDUGJY) A/c 24.4117 1673.04 0.00

(64186437178) Disbursement Bank (Operative) 23.1.10 Account - Canara Bank (F.D) - 21.4147 9.30 0.00

665 Disbursement Bank (Operative) 23.1.11 24.4157 2184.43 9.56 Account - Syndicate Bank Disbursement Bank (Operative) 23.1.12 Account - Syndicate Bank (A/c 24.4157 0.02 0.00

No 1991) (CLTD) Disbursement Bank (Operative) 23.1.13 Account - Bank of India A/c No: 24.4217 59.10 0.00

844920110000073) Disbursement Bank (Operative) 23.1.14 24.4097 872.25 879.78 Account - Vijaya Bank Disbursement Bank (Operative) 23.1.15 Account - Vijaya Bank (F.D)- 24.4097 0.94 0.00

854 Disbursement Bank (Operative) 23.1.16 24.4097 2.13 0.00 Account - Vijaya Bank-211 Disbursement Bank (Operative) 23.1.17 24.4017 1542.89 101.30 Account - State Bank of Mysore Disbursement Bank (Operative) 23.1.18 24.4047 15.10 1.49 Account - Canara Bank Disbursement Bank (Operative) 23.1.19 24.4057 6.88 13.37 Account - Syndicate Bank

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NOTE: 23 CASH AND BANK BALANCES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code Disbursement Bank (Operative) 23.1.20 24.4307 - 0.53 Account - Corporation Bank Disbursement Bank - 23.1.21 (Operative) Account - IDBI 24.4317 0.23 15.78

BANK Disbursement Bank - 23.1.22 (Operative) Account - IDBI 24.4317 353.73 0.00

BANK - 34539 Disbursement Bank - 23.1.23 (Operative) Account - 24.4327 299.58 77.25

CORPORATION BANK Disbursement Bank Account 23.1.24 24.4337 7.33 44.61 Axis Bank Limited Disbursement Bank Account 23.1.25 24.4347 10.72 0.61 ICICI Bank (A/c No 11056) Sub-Total 11409.03 2516.22

23.2.1 Cash on Hand 24.1107 143.46 579.19

23.2.2 Cheques / drafts on hand 24.1107 1863.28 164.89

23.3 Imprest with staff 24.2107 5.67 2012.40 5.38 749.46 23.4 Others

23.4.1 Postage stamps on hand 24.1207 1.24 1.11

Remittance to Head Office- 23.4.2 24.5017 24.20 2.71 Transit Account Transfers from Head Office in 24.6 23.4.3 860.14 885.59 10806.20 10810.03 Transit Accounts series 23.5 Fixed deposits in Banks

23.5.1 Short term deposits

Cash and Cash Equivalent 23.5.2 20.2807 1510.61 16603.67 3434.77 18325.66 (Short term deposits) Other Bank Balances

Deposits provided as margin 20.2807 125.26 125.26 853.34 853.34 money for letter of credit TOTAL 16728.92 19178.99

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(` In Lakhs) Deposit FY17 FY16 Maturity less than 3 months 14.38 159.00 Maturity :- 3 months to 12 months 1621.48 4129.11 Maturity :- more than 12 months 0.00 0.00 Total 1635.86 4288.11

# Entry passed for IP / BJ & KJ subsidy ordered by GOK to an extent of `10775 lakhs during March-2016.

NOTE: 24 SHORT TERM LOANS AND ADVANCES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code 24.1 Capital Advance

Un-secured considered good Advance to Suppliers 24.1.1 and Contractors 24.1.1.1 Advances to Suppliers 25.5017 0.00 132.86

Advances to 26.6027 24.1.1.2 6590.85 12380.83 Contractors 26.6037 Sub-Total 6590.85 12513.69

Other Loans and 24.2 Advances Un-Secured 24.2.1 considered good Loans and advance 24.2.2.1 to Staff-Interest

bearing 24.2.2.2 Advance of Pay 27.2017 0.00 0.00

24.2.2.3 Travel advance 27.2027 1.53 3.43

24.2.2.4 Festival advance 27.2037 70.47 52.95

24.2.2.5 Medical advance 27.2047 43.49 37.58

Advance to staff 24.2.2.6 27.2057 21.91 114.29 against expenses Other Loans and 24.2.2.7 27.8007 0.20 15.20 Advances Sub-Total 137.62 223.44

TOTAL 6728.46 12737.14

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NOTE: 25 OTHER CURRENT ASSETS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code 28.1037 & 25.1 Sale of Store 0.00 0.26 28.1047 Income accrued and dues 25.2 others (Bank Deposits & 28.3907 619.59 194.28

rebate on power purchase) 25.3 Recoverable from GOK

Revenue Subsidy/Grant 28.6107 & 25.3.1 1862.73 1862.73 receivable 28.6117 Sub-Total 2482.32 2057.27

25.4 Recoverable from Employees

Penalties recoverable from 25.4.1 28.1067 0.00 0.00 GAM-K Amount recoverable from 25.4.2 28.4017 151.54 6.09 Employees Amount recoverable from 25.4.3 28.4027 0.00 0.00 Ex-employees Cash found short due to theft 25.4.4 28.4037 0.24 0.24 etc., pending Investigation Material drawn by Executive 25.4.5 28.4047 3.36 3.36 Sub-Ordinates Amount recoverable from 25.4.6 28.4097 137.13 61.88 employees-material related Sub-Total 292.27 71.57

25.5 Others

Receivable others - Belaku 25.5.1 28.1057 0.00 0.00 Yojane 25.5.2 GOK Department 28.1107 74.18 165.58

Sundry debtors - deposit from 25.5.3 contribution works dasara 28.1217 0.00 0.00

festival Expenses recoverable from 25.5.4 28.8107 71.20 38.11 Suppliers 25.5.5 Prepaid Expenses 28.8207 173.18 8.82

25.5.6 Advance Tax Paid (TDS) 28.8217 0.00 0.00

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NOTE: 25 OTHER CURRENT ASSETS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code 25.5.7 Receivables others 28.8987 81.95 116.26

25.5.8 Regulatory Asset - KERC 28.9187 0.00 12041.00

25.5.9 Securities from suppliers 28.9307 0.00 0.00

Amount receivable from P&G 25.5.10 28.9077 25.21 3.81 Trust Receivable from beneficieries 25.5.11 28.1257 11.54 5.30 of Solar Lanterns Provisional bill paid to NTPC 25.5.12 28.9497 0.00 0.00 rebate scheme Amount Receivable in cash 25.5.13 28.8827 12082.00 0.00 from BESCOM Receivable from BESCOM - 25.5.14 28.8907 0.00 0.00 Power Purchase Receivable from MESCOM - 25.5.15 28.8917 0.00 0.00 Power Purchase Receivable from HESCOM- 25.5.16 28.8927 149.00 149.00 Power Purchase Receivable from GESCOM- 25.5.17 28.8937 2162.00 2162.00 Power Purchase Transformers/meters 25.5.18 etc.,Issued to Contractors / 26.6047 890.07 1228.56

Suppliers for repairs Transformers/meters etc. 25.5.19 issued to repairs for Board 27.2107 111.71 184.54

Personnel 25.5.20 Receivable from PCKL 28.9197 0.00 0.00

Advance Paid to SPPCC towards UI Charges 25.5.21 28.9457 0.00 0.00 (Unsheduled Interchange Charges) Written down value (WDV) of 16.1 25.5.22 814.85 757.54 obsolete/Scrapped assets. Series Written down value (WDV) of 16.2 25.5.23 2003.58 1753.08 Faulty/Dismantled Assets Series 25.5.24 M/s MAPS 41.1137 0.00 0.00

25.5.25 M/s EDCL 41.1287 0.00 8.38

25.5.26 M/s Vijayalakshmi Hydro 41.1297 0.19 0.00

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NOTE: 25 OTHER CURRENT ASSETS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code M/s Hemavathi Power & Light 25.5.27 41.1327 0.00 16.30 Pvt. Ltd.,-1 (HLBC) M/s Hemavathi Power & Light 25.5.28 41.1337 0.00 5.51 Pvt. Ltd.,-11 (HRB) 25.5.29 M/s Trishul Power Pvt Ltd 41.1347 0.02 0.00

Energy Balance A/C - 25.5.30 41.1487 4575.03 7675.47 HESCOM Energy Balance A/C - 25.5.31 41.1497 5220.79 8374.80 GESCOM 25.5.32 M/s Venika Green Power 41.1627 0.00 3.36

25.5.33 M/s BPCL (Manjadka) 41.1927 0.30 0.00

For Purchase of power High 25.5.34 cost power procured by PCKL 41.2677 58.88 321.36

on behalf of CESC For purchase of power from 25.5.35 41.4277 43.61 2.63 M/S POSOCO-SRLDC 25.5.36 M/s Avon GP-09 41.4057 0.00 46.97

25.5.37 M/s Savitha Chemicals - H26 41.4067 0.00 50.24

25.5.38 M/s Savitha Chemicals - H32 41.4077 0.00 52.59

M/s Sai Nireeha Power 25.5.39 41.4497 0.00 0.00 Project Pvt.Ltd., 25.5.40 M/s Athani Sugars Ltd., 41.4547 7.42 0.00

M/s SLDC, KPTCL (Reactive 25.5.41 41.4947 13.58 0.00 Energy Charges) M/s PCKL (Reactive Energy 25.5.42 41.4957 39.36 0.00 Charges - Inter State) M/s Flax Hydro Energy 25.5.43 41.4507 0.00 1.87 Pvt.Ltd., IT deducted at source on 25.5.44 46.9257 10.83 0.00 other payments Excess Credit afforded by Bank 25.5.45 46.9717 0.00 0.00 pending reconciliation-SBM 25.5.46 Salary Payable 44.3107 0.00 0.00

Excess Credit afforded by 25.5.47 Bank pending reconciliation - 46.9747 0.00 0.00

SBM 25.5.48 Revenue Suspense 47.6077 0.00 0.00

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NOTE: 25 OTHER CURRENT ASSETS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code Revenue Collection pending 25.5.49 47.6097 0.00 25.08 classification Sub-Total 28620.47 35198.16

TOTAL 31395.06 37326.99

25.5.50 Under A/c 28.9187 the Regulatory Asset recognized on amounts allowed in tariff order of subsequent period and towards the provisional gap expected to be considered by KERC for recovery in subsequent years as on 31.03.2017 is as follows: Non Current Asset - ` 982.44 Crs (Previous Year : ` 344.05 Crs) Other Current Asset - ` Nil (Previous Year : ` 120.41 Crs) 25.5.51 The GOK vide order No. EN 34 PSR 2008 Dated 19.08.2010 has ordered to refund the amount paid by the framers during the period from 01.04.2001 to 31.03.2003 to them and the same is implemented by CESC. An amount of ` 18.63 Crs is shown as receivable from GOK under A/c code 28.6117.

NOTE: 26 REVENUE FROM OPERATIONS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code Revenue from 26.1 Operations REVENUE FROM 26.1.1 SALE OF POWER-LT Bhagya jyothi/ Kutira 26.1.1.1 61.1017 2736.10 2297.23 Jyothi above 18 Units Bhagya jyothi/ Kutira 26.1.1.2 Jyothi Tariff Subsidy 61.6267 2389.53 2381.56

upto 18 Units Domestic combined 26.1.1.3 lighting, heating and 61.1027 29947.22 25762.83

motive power LT 2a(i) Domestic combined 26.1.1.4 lighting, heating and 61.1037 13781.36 11335.88 motive power LT 2a(ii) Private, Professional and other private 26.1.1.5 61.1117 476.77 404.41 educational institutions & Hospitals LT2 b(i)

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NOTE: 26 REVENUE FROM OPERATIONS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code Private, Professional and other private 26.1.1.6 61.1127 210.54 177.40 educational institutions & Hospitals LT2 b(ii) Comml. Ltg.Htg. & 26.1.1.7 61.1157 17813.41 16240.47 motive power LT3(i) Comml. Ltg.Htg. & 26.1.1.8 61.1167 5950.57 5199.76 motive power LT3(ii) Revenue from sale of power - Applicable to KPTCL 33 KV, 66 KV, & 26.1.1.9 61.1177 198.57 201.24 above stations installation consumption (Auxillary Consumption) Irrigation Pumpsets 26.1.1.10 61.1187 2561.23 1456.60 (below 10 HP) -LT4a Subsidy receivable for 26.1.1.11 free Power supply to IP 61.6277 152443.82 101796.44

Set below 10HP Private Horticulture Nurseries,Coffee, & 26.1.1.12 61.1207 269.12 212.64 Tea Plantations above 10HP LT4C(ii) Irrigation Pump sets 26.1.1.13 (above 10HP)/ Water 61.1217 56.48 39.87

Lifting LT-4(b) Private Horiticultural 26.1.1.14 Nurseries, Coffee, & 61.1287 388.46 191.42

Tea Plantations LT4 C(i) Installations motive 26.1.1.15 powers with 5.H.P and 61.1297 310.87 207.69

below LT5(a)(i) Installations motive powers with above 26.1.1.16 61.1307 1168.51 1066.06 5HP & Below 40 HP LT5(a)(ii) Installations motive powers with above 40 26.1.1.17 61.1317 1726.08 1637.84 HP & below 67 HP LT5(a)(iii)

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NOTE: 26 REVENUE FROM OPERATIONS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code

Installations motive 26.1.1.18 powers with above 67 61.1337 156.77 163.68 HP LT5 (a)(iv)

Installations motive 26.1.1.19 powers with 5 HP & 61.1347 693.53 601.89 below LT5(b)(i)

Installations motive powers with above 26.1.1.20 61.1357 2987.27 2659.16 5 HP & below 40 HP LT5 b(ii)

Installations motive powers with above 26.1.1.21 61.1367 2378.66 2334.40 40 HP & below 67 HP LT5 b(iii)

Installations motive 26.1.1.22 powers with above 67 61.1377 221.56 250.68 HP LT5 b(iv)

Water Supply – RLB, 26.1.1.23 61.1407 10758.41 6315.51 ULB & Others LT6(a) Public Lighting - RLB, 26.1.1.24 61.1417 6695.16 5790.45 ULB & Others LT-6(b) Temporary Power Supply Non commerical 26.1.1.25 lights and fans and 61.1457 2119.43 1710.71 other small appliances LT-7(a)

Applicable to hoardings & Advertisement boards, Bus shelters etc power supply on 26.1.1.26 61.1467 6.37 6.46 permanent connection basis sanctioned load containing less than 67 HP LT7 (b)

Sub-Total 258445.82 190442.29

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NOTE: 26 REVENUE FROM OPERATIONS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code Revenue from Sale of 26.1.2 Power -HT Public Water Supply & 26.1.2.1 Sewerage Pumping 61.2507 20474.06 18894.21 HT-1 Industrial, Non Industrial & Commercial purposes 61.2554, 26.1.2.2 48909.92 50933.43 & Railway Traction 61.2557 HT-2(a) 26.1.2.3 Commercial HT-2(b) 61.2567 10754.78 9244.02

Governement Hospitals, Hospitals run by Charitable 26.1.2.4 Institutions, ESI 61.2837 2195.54 1855.89

Hospitals, Universities, Educational institutions etc., HT-2 C (i) Educational institutions and Hospitals (other 26.1.2.5 than those covered 61.2847 1348.52 1357.97

under HT-2 C (i)) - HT-2 C(ii) Lift irrigation Schemes/ Lift irrigation societies under Govt. 61.2604, 26.1.2.6 1923.25 1865.61 Department/ Govt 61.2607 owned Corporations HT-3 (a) (i)

Private LI Schemes and Lift Irrigation societies 61.2617, 26.1.2.7 12.30 3.45 other than those 61.2627 covered under HT-3(b) Residential apartments and colonies availing 26.1.2.8 61.2807 235.04 303.17 power supply independently HT-4 Revenue from sale of 26.1.2.9 61.2707 1094.25 357.14 power – HT5 Sub-Total 86947.65 84814.89

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 139

12th Annual Report 2016-17

NOTE: 26 REVENUE FROM OPERATIONS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code 83.8337+ 83.8307+ Less: Withdrawal of 26.2 83.8317+ 93.49 93.49 174.41 174.41 Revenue Demand 83.8327+ 83.8347 OTHER REVENUE 26.3 FROM OPERATIONS 26.3.1 Wheeling charges

Miscellaneous 26.3.2 Charges from Consumers Reconnection Fee 61.9027+ 26.3.2.1 75.37 37.07 D & R 61.9017 Service Connection 26.3.2.2 61.9047 867.18 698.41 (Supervision Charges) Miscellaneous Charges 26.3.2.3 61.9067 285.49 218.76 from Consumers 26.3.2.4 Cross subsidy Charges 61.2907 982.65 525.72

Fuel Cost Adjustment 26.3.2.5 61.2917 389.71 1015.55 Charges Registration fee towards 26.3.2.6 SRTPV connection 61.9077 0.60 2.29 (Solar roof top system) Facilitation fee towards 26.3.2.7 SRTPV connection 61.9087 1.89 2.53 (Soalr roff top system) SRTPV application 26.3.2.8 61.9177 - 0.01 fees Sub-Total 2602.89 2500.34

TOTAL 347902.86 277583.10

26.4 Particulars 2017 2016 Difference % Increase Sales In (MU) 6260.28 5405.23 855.05 15.82 Revenue in lakhs 347902.86 277583.10 70319.76 25.33

140 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

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26.5 All Income and Expenditure having a material bearing on the financial Statements are recognized on accrual basis.

26.5.1 Revenue Recognition.

26.5.1.1 Revenue from sale of energy is accounted on accrual basis.

26.5.1.2 The sale of energy is as per the tariff fixed by the Karnataka Electricity Regulatory Commission (KERC).

26.5.1.3 Revenue for the year is also adjusted by estimating un-billed revenue of previous year and current year.

26.6 Total Revenue from sale of energy during 2016-17 includes ` 19035.78 Lakhs in respect of revenue accrued but pending billing at the year end. The same was ` 17487.44 Lakhs for the previous year 2015-16.

26.7 During the year the amount to be received from the GOK as subsidy towards free power supply to IP set consumer having connected load of upto and inclusive of 10 HP and free power supply to BJ/KJ consumers with consumption upto 18 units on actual basis is ` 152443.82 (PY ` 101796.44) lakhs and ` 2389.53 (PY ` 2381.56) lakhs respectively. Out of the said receivable, an amount of ` 127555.00 (PY ` 147364.13) lakhs and ` 2139.00 (PY ` 3858.87) lakhs has been released for IP set and BJ/KJ installations respectively as per KERC Tariff Order. The balance amount is accounted as receivable from GOK.

26.8 The Corporation follows the method of recognizing the Revenue surplus (Net Profit after tax) for the year as per CERC guidelines, at a benchmark rate of 15.5% ROE.

26.9 The Government of Karnataka in its Order No. EN 48 PSR 2006 Bangalore, Dated 13.06.2007 has approved to account R.E Subsidy as Tariff Subsidy by

ESCOMs in the books of accounts for Financial Year 2006-07 onwards and the

same has been accounted accordingly during this year.

26.10 Under A/c 61.9187, the Regulatory Assets of ` 517.99 Crs (PY ` 464.46 Crs) includes, ` Nil (PY ` 120.41 Crs as allowed by the commission in its Tariff Order) and additional regulatory asset to the extent of ` 638.40 Crs (PY ` 344.05 Crs) computed towards the provisional gap expected to be considered by KERC for inclusion in the tariff revision of future years net of reversal of ` 120.41 Crs (PY Nil) created in FY 16.

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NOTE: 27 OTHER INCOME (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code 27.1 Interest Income

27.1.1 From Consumers

Delayed Payment Charges 27.1.1.1 61.9057 3973.99 8039.97 from Consumers 27.1.2 From Others

Interest on Bank Short term 62.2227+ 27.1.2.1 367.22 176.21 Deposits 62.2607 27.1.2.2 Interest from Bank SB A/c 62.2707 0.25 -

Sub-Total 4341.46 8216.18

27.2 Dividend Income

Net Gain/Loss on Sale of 27.3 Investments 27.4 Other Non-Trading Income

27.4.1 Profit on sale of Stores 62.3307 2.32 1.49

62.3407+ 27.4.2 Sale of Scrap 62.4007+ 16.66 26.76

62.4107 Other Miscellaneous 27.4.3 62.3607 5.66 9.75 receipts from Trading Sub-Total 24.63 38.00

27.5 Miscellaneous Receipts

Income accrued on account 27.5.1 62.2657 28.14 26.19 of energy savings 27.5.2 Rental from Staff Quarters 62.9017 199.18 201.90

27.5.3 Rental From others 62.9027 5.70 3.07

Excess found on Physical verification of Materials 62.9047+ 27.5.4 5.51 1.31 Stock, Fixed asset and 62.9057 Cash. Rebate- for collection of 27.5.5 62.9167 54.36 43.64 Electricity Tax 62.9177+ 27.5.6 Miscellaneous Recoveries 3160.82 6100.07 62.9178 27.5.7 Incentives received 62.9187 387.78 1361.21

27.5.8 Supervision Charges 62.9077 241.79 0.00

27.5.9 One Time maintenance 62.9087 3.69 0.00

142 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

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NOTE: 27 OTHER INCOME (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No. Code cost for New Layouts Depreciation withdrawn 27.5.10 from Contribution / 62.9607 4521.68 2556.88

subsidies as per AS-12 27.5.11 Write back of Interest 62.2807 4298.00 -

Sub-Total 12906.65 10294.28

Income relating to 27.6 previous Years: Receipts from consumers 27.6.1 65.2007 1474.39 976.10 relating to prior periods 27.6.2 Excess provision for IT 65.5007 - 0.03

Excess provision for 27.6.3 65.6007 140.71 85.71 Depreciation in Prior Periods Excess provision for interest 27.6.4 and finance charges in Prior 65.7007 154.22 181.59 periods Other Excess provision in 27.6.5 65.8007 1273.79 1398.47 Prior Periods Other income relating to 27.6.6 65.9007 816.57 333.08 prior periods Sub-Total 3859.69 2974.97

TOTAL 21132.44 21523.42

27.7 As per the Government Order No.EN O6 PSR 2009 Bangalore, Dated 22.2.2010 the rebate payable to the Electricity Distribution Compaines for collection of Electricity Tax from Consumers and its remittance to Govt. is revised from 1.5 % to 0.5% with effect from 01.01.2010 27.8 The Other income for 2016-17 of ` 21132.44 (PY ` 21523.42) lakhs includes the Delayed Payment Charges from Consumers of ` 3973.99 (PY ` 8039.97) lakhs. 27.9 Accounting of Auxiliary consumption of KPTCL 33 KV, 66 KV & above station consumption period from 2005-06 to 2016-17 is calculated based on State Average Power Purchase Cost as per KERC Order dated for OP No.83/2016.

With implementation of AS-2 from 1.04.2016 the balance under Material cost 27.10 variance reserve account has been transferred to income account. In accordance with the CERC Regulations and to fulfill the AS-12 Depreciation 27.11 on assets acquired out of the Grants, subsidy & Consumer contribution has been withdrawn to an extent of ` 4521.68 Lakhs (PY ` 2556.88 lakhs).

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NOTE: 28 PURCHASE OF POWER (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3. 2016 No. Code 28.1 Purchase of Power

28.1.1 M/s KSEB 70.1027 55.04 50.38

28.1.2 M/s KPCL 70.1087 70236.85 70830.84

M/s NTPC-RSTPS STG 28.1.3 70.1107 11037.73 9051.72 I &II M/s NTPC - RSTPS 28.1.4 70.1117 2888.37 2747.94 STG.III M/s. NTPC -Talcher 28.1.5 70.1127 7445.35 5934.70 STG.II 28.1.6 M/s. MAPS 70.1137 546.54 468.13

28.1.7 M/s. NLC - TPS I 70.1147 3929.85 2882.88

28.1.8 M/s. NLC - TS II 70.1157 12408.53 6602.21

M/s PGCIL - SREB UI 28.1.9 70.1167 1680.72 2024.81 Pool Account 28.1.10 M/s. KAIGA 70.1177 6730.64 6774.27

28.1.11 M/s.JSW PTCL 70.1217 8324.31 13958.52

M/s South India Paper 28.1.12 70.1227 358.59 216.63 Mills M/s ICL Coromandel 28.1.13 70.1237 106.22 1062.33 Sugars Ltd. M/s Bannari Amman 28.1.14 70.1247 1166.85 621.69 Sugar Ltd-I M/s Bhourka 28.1.15 70.1267 421.74 761.85 (Madhavamantri) M/s Bhourka 28.1.16 70.1277 93.52 116.35 (Mandagere) 28.1.17 M/s EDCL 70.1287 559.96 579.50

28.1.18 M/s Vijayalakshmi Hydro 70.1297 21.08 109.03

M/s Atria Power 28.1.19 70.1307 10.63 742.19 (Brindavan) M/s Bhoruka Power 28.1.20 70.1317 113.80 118.32 Corporation Ltd. M/s Hemavathi Power & 28.1.21 70.1327 359.23 687.28 Light Pvt. Ltd. -I (HLBC) 28.1.22 M/s Hemavathi Power & 70.1337 522.19 301.40

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NOTE: 28 PURCHASE OF POWER (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3. 2016 No. Code Light Pvt. Ltd. -II (HRB) M/s Trishul Power Pvt. 28.1.23 70.1347 72.91 127.98 Ltd. M/s Chamundeshwari 28.1.24 70.1377 39.34 0.00 Sugars Ltd M/s. Bhoruka Power 28.1.25 70.1387 631.17 935.43 Corporation Ltd. M/s KPTCL 28.1.26 70.1397 34650.33 30542.22 Transmission Charges M/s PGCIL 28.1.27 70.1407 15511.27 10481.91 Transmission Charges M/s SLDC- O&M 28.1.28 70.1427 240.00 215.72 Expenses M/s SPPCC O & M 28.1.29 70.1437 81.92 86.63 Expenses 28.1.30 M/s TBHE 70.1457 0.00 99.54

Energy Balance A/C- 28.1.31 70.1467 19525.30 8188.36 BESCOM Energy Balance A/C- 28.1.32 70.1477 3675.35 (99.07) MESCOM Energy Balance A/C- 28.1.33 70.1487 3074.64 (6277.47) HESCOM Energy Balance A/C- 28.1.34 70.1497 3165.28 308.93 GESCOM 28.1.35 M/s PTC India Ltd. 70.1607 3691.67 830.64

M/s Lanco Electric Utility 28.1.36 Co. (Open Access 70.1617 2363.35 441.39

Charges) 28.1.37 M/s Venika green power 70.1627 - (0.24)

28.1.38 M/s EDCL (wind) 70.1647 111.46 100.16

28.1.39 M/s Keerthi IND 70.1657 105.81 95.79

M/s Renaissance 28.1.40 70.1667 218.25 196.23 Holding (27&28) M/s Renaissance 28.1.41 70.1677 222.50 200.33 Holding (33&35) 28.1.42 M/s Nutech associates 70.1687 127.02 119.74

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NOTE: 28 PURCHASE OF POWER (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3. 2016 No. Code M/s Senthil Energy Pvt 28.1.43 70.1697 113.61 99.91 Ltd M/s Qube energy 28.1.44 70.1707 120.32 103.65 Projects Pvt Ltd. M/s Sapthagiri 28.1.45 70.1717 232.74 210.05 Distilleries M/s Savitha Oil 28.1.46 70.1727 256.60 218.69 Technologies Ltd. (H.05) M/s Kuminex Minerals 28.1.47 70.1737 265.34 225.61 Pvt.Ltd. M/s NVR Vidyut Pvt Ltd 28.1.48 70.1747 276.82 225.42 (H.36- 38) 28.1.49 M/s The Chennai Silks 70.1757 142.05 103.62

M/s NVR Vidyut Pvt Ltd 28.1.50 70.1767 80.23 69.40 (H.40) 28.1.51 M/s Mukund Kamath.S 70.1777 70.97 61.77

M/s NVR Vidyut Pvt Ltd 28.1.52 70.1787 86.25 72.13 (H.43) M/s Happy valley 28.1.53 70.1797 66.04 49.59 Developers M/s Emkay taps & 28.1.54 70.1807 65.53 57.30 Cutting Tools .Pvt. Ltd. M/s Rathnagiri Impex. 28.1.55 70.1817 56.29 42.46 Pvt, Ltd 28.1.56 M/s Ramco Industries 70.1827 93.71 102.37

M/s Ushdev Engitech 28.1.57 70.1837 93.42 75.99 Ltd. (H-14) M/s Ushdev Engitech 28.1.58 70.1847 102.50 92.64 Ltd. (H-15) M/s Ushdev Engitech 28.1.59 70.1857 122.27 109.43 Ltd. (H-16) M/s Ushdev Engitech 28.1.60 70.1867 128.61 116.49 Ltd. (H-17) M/s Ushdev Engitech 28.1.61 70.1877 123.31 111.18 Ltd. (H-18) M/s Ramabhen Ukabhai 28.1.62 70.1887 106.72 104.06 (H-19)

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NOTE: 28 PURCHASE OF POWER (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3. 2016 No. Code M/s Limbavali Power 28.1.63 70.1897 204.58 760.68 Private Ltd. LC Charges/ Other Bank 28.1.64 Commission Paid For 70.1917 171.49 107.02 Purchase Of Power 28.1.65 M/s BPCL (Manjadka) 70.1927 320.51 361.73

M/s Simran Wind 28.1.66 70.1947 74.19 66.55 Projects H-29 M/s Simran Wind 28.1.67 70.1957 92.88 84.64 Project H-34 M/s Atria Brindavan (4 28.1.68 70.1977 154.11 420.93 Mega Watt) Ltd M/s High cost energy 28.1.69 70.2677 2871.73 25.96 suppliers 28.1.70 M/s NTPC VVNL (IPP) 70.4017 165.95 0.00

28.1.71 M/s BVSR-11 70.4027 96.23 82.09

28.1.72 M/s BVSR-12 70.4037 89.25 77.73

28.1.73 M/s Avon GP-08 70.4047 104.60 89.70

28.1.74 M/s Avon GP-09 70.4057 95.47 69.78

M/s Savitha Oil 28.1.75 70.4067 101.69 95.12 Technologies H26 M/s Savitha Oil 28.1.76 70.4077 90.62 85.97 Technologies H32 M/s Savitha Oil 28.1.77 70.4087 89.02 75.57 Technologies H39 28.1.78 M/s Friends Salt GP-14 70.4097 77.94 63.83

28.1.79 M/s Frineds Salt GP-16 70.4107 97.32 79.24

28.1.80 M/s Friends Salt GP-20 70.4117 87.89 68.64

28.1.81 M/s Sree Minerals 70.4127 91.87 70.56

M/s Durga Agencies, 28.1.82 70.4137 96.62 80.05 GP-18 M/s Durga Agencies, 28.1.83 70.4147 92.51 72.22 GP-19 M/s Eastmen 28.1.84 70.4157 308.12 237.72 International Ltd M/s Mysore mercetaile 28.1.85 70.4167 113.21 126.28 Co Ltd

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NOTE: 28 PURCHASE OF POWER (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3. 2016 No. Code M/s Nagarjun Hydro 28.1.86 70.4177 1126.54 1020.68 Energy Ltd 28.1.87 M/s UPCL 70.4187 36790.75 41635.83

M/s Hindustan Zinc Ltd 28.1.88 70.4207 280.46 228.82 (GP 02,03,04) M/s Hindustan Zinc Ltd 28.1.89 70.4217 104.05 86.84 (GP-17) M/s Hindustan Zinc Ltd 28.1.90 70.4227 215.52 181.22 (GP-23,24) M/s Hindustan Zinc Ltd 28.1.91 70.4237 350.88 288.68 (GP-28,31) M/s NTPC-Simhadri 28.1.92 70.4257 8976.03 6305.85 Thermal Power station M/s Tata power Trading 28.1.93 Company Ltd (M/S 70.4267 804.09 3013.37

TPCL) 28.1.94 M/s POSOCO-SRLDC 70.4277 35.12 32.43

28.1.95 M/s GAIL (India) Ltd 70.4287 620.76 495.90 (MG-01 to MG-06) 28.1.96 M/s GAIL (India) Ltd 70.4297 649.52 528.81 (MG-07 to MG-13) 28.1.97 Non PPA Power 70.4307 1.19 11.07 Generators 28.1.98 M/s GAIL (India) Ltd 70.4317 205.78 170.56 (MG-14 to MG-15) 28.1.99 M/s GAIL (India) Ltd 70.4327 167.49 138.15 (MG-16 to MG-17) 28.1.100 M/s Arvind V Joshi & Co. 70.4337 88.51 70.04

28.1.101 M/s Pearlite lineres Pvt 70.4347 106.29 85.79 Ltd 28.1.102 M/s BMM ISPAT Ltd 70.4357 822.03 3902.24

28.1.103 M/s Gujarat Urja Vikas 70.4367 - - Nigama ltd 28.1.104 M/s Harekrishna 70.4377 - 36.17 Metallics 28.1.105 M/s NSL Sugars 70.4387 149.64 376.30 (Tungabhadra) Ltd

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NOTE: 28 PURCHASE OF POWER (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3. 2016 No. Code 28.1.106 M/s Vijayanagar Sugars 70.4407 9.57 0.00 Pvt Ltd 28.1.107 M/s NTPC Tamilnadu 70.4417 5156.77 2677.75 Energy Pvt Ltd 28.1.108 M/s Dhruvadesh 70.4427 49.41 Metasteel Pvt Ltd., 0.00 28.1.109 M/s Essar Power MP 70.4437 0.00 0.00 Ltd., 28.1.110 M/s Global Energy Pvt. 70.4447 0.00 267.52 Ltd., 28.1.111 M/s Ideal Energy Project 70.4457 0.00 83.08 Ltd., 28.1.112 M/s Reliance Energy 70.4467 0.00 0.00 Trading Ltd., 28.1.113 M/s Satish Sugars Ltd., 70.4477 65.09 385.21 28.1.114 M/s Tangedco Ltd., 70.4487 3.83 3.86 28.1.115 M/s Sai Nireeha Power 70.4497 172.25 82.47 Project Pvt Ltd. 28.1.116 M/s Flax Hydro Energy 70.4507 3.31 20.75 Pvt Ltd., 28.1.117 M/s Kudankulam Nuclear 70.4517 6589.84 1833.09 Power Project 28.1.118 M/s NTPC-VVNL(Solar) 70.4527 3136.40 2883.98 28.1.119 M/s Priyadarshni Jurala 70.4537 651.64 663.34 Hydro Electric Scheme 28.1.120 M/s Athani Sugars Ltd. 70.4547 9.90 431.89 28.1.121 M/s Nirani Sugars Ltd. 70.4557 90.67 281.86 28.1.122 M/s GMR Energy 70.4567 0.00 85.20 Trading Ltd. 28.1.123 M/s NLC-TPS II Exp 70.4577 1936.68 803.62 28.1.124 M/s NLC Tamil Nadu 70.4587 6625.36 2794.88 Power Ltd. 28.1.125 Renewable Energy Certificate for Solar RPO 70.4597 0.00 0.00 Deficiency

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NOTE: 28 PURCHASE OF POWER (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3. 2016 No. Code 28.1.126 M/s Madhav solar (Karnataka) Pvt. Ltd 70.4607 643.46 433.31 (Project-1) 28.1.127 M/s Madhav solar (Karnataka) Pvt. Ltd 70.4617 683.16 443.44 (Project-2) 28.1.128 M/s Mittal Processors 70.4627 247.75 1097.28 Pvt. Ltd 28.1.129 M/s Balkeshwara 70.4637 12.61 99.53 Sugars. Ltd 28.1.130 M/s IPP’s under section 70.4647 4005.42 16813.63 11 28.1.131 M/s Damodar Valley 70.4657 14209.83 2182.11 Corporation. 28.1.132 M/s Emami power 70.4667 1413.39 53.97 Limited (Solar) 28.1.133 M/s Chikku Energy 70.4677 212.82 0.00 Private Ltd (Solar) 28.1.134 M/s CBM Enterprises 70.4687 179.08 0.00 (Solar) 28.1.135 M/s Maharashtra State Electricity Distribution 70.4697 2715.06 0.00 Company Ltd 28.1.136 M/s Core Green Sugar 70.4707 20.27 0.00 and Fuels Pvt Ltd 28.1.137 M/s E.I.D Parry (India) 70.4717 137.56 0.00 Ltd 28.1.138 M/s GEM Sugars Ltd 70.4737 69.77 0.00 28.1.139 M/s Godavari Bio 70.4747 149.31 0.00 Refineries Ltd 28.1.140 M/s Jamkhandi Sugars 70.4757 85.21 0.00 Ltd 28.1.141 M/s KPR Sugar Mills Pvt 70.4767 49.67 0.00 Ltd 28.1.142 M/s Manali Sugars Ltd 70.4777 2.21 0.00 28.1.143 M/s Shiraguppi Sugar 70.4787 50.06 0.00 works Ltd

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NOTE: 28 PURCHASE OF POWER (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3. 2016 No. Code 28.1.144 M/s Shri Prabhulineshwar Sugars 70.4797 48.16 0.00 & Chemicals 28.1.145 M/s Shivashakthi Sugars 70.4807 54.16 0.00 Ltd 28.1.146 M/s Shree Renuka 70.4817 121.32 0.00 Sugars Ltd 28.1.147 M/s Soubhagyalakxmi 70.4827 5.92 0.00 Sugars Ltd 28.1.148 M/s Saketh Solar Energy 70.4837 133.72 0.00 LLP (Solar) 28.1.149 M/s Gorich Energy Pvt 70.4847 45.88 0.00 Ltd (Solar) 28.1.150 M/s A.V Anjaneya 70.4857 35.91 0.00 Prasad (Solar) 28.1.151 M/s Solar roof top 70.5007 140.13 3.74 consumer 28.1.152 M/s Azure Sunrise Pvt 70.4897 45.66 0.00 Ltd (Solar) 28.1.153 M/s Tanivi Solar Pvt Ltd 70.4907 29.75 0.00 (Solar) 28.1.154 M/s Raygen Power Pvt 70.4917 22.74 0.00 Ltd (Solar) 28.1.155 M/s Raichur Power Corporation Ltd 70.4927 376.68 0.00 (Yermarus TPS) 28.1.156 M/s SLDC, KPTCL 70.4937 (0.70) 0.00 (Congestion Charges) 28.1.157 M/s SLDC, KPTCL (Reactive Energy 70.4947 (11.87) 0.00 Charges 28.1.158 M/s SLDC, KPTCL (Reactive Energy 70.4957 (5.71) 0.00 Charges - Inter State) TOTAL 326690.70 271774.60

28.2 The Power Purchase cost is recognized based on the Government of Karnataka Order No. EN 131 PSR 2003 Dated 10th May 2005 for accounting the cost of

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power based on the billings made by Power Generators Pool allocated to CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED, MYSORE by the Government of Karnataka. 28.3 The KERC in its Tariff Order-2009 has determined the transmission charges based on the installed generation capacity of the state. 28.4 The final energy balancing result is awaited from LDC as on the date of preparation of accounts. However, the energy balancing result arrived at joint reconciliation meeting held among the ESCOMs have been incorporated in the accounts.

28.5 Particulars 2017 2016 Difference % Increase Power Purchased In (MU) 7544.85 6444.86 1099.99 17.07 Power Purchase Cost in 326690.70 271774.60 54916.10 20.21 lakhs

28.6 Power Purchase costs and adjustments therefor, if any, required have not been accounted by the company wherever claims have not been received from the respective generators or power traders. 28.7 Pending finality of decision by PCKL, ESCOMs and UPCL at their meetings for resolving issues relating to the billing of UPCL power plant for earlier years, no adjustments to power purchase cost has been considered necessary in the financial statement for the year, as a matter of prudence.

28.8 M/s KPCL, has preferred a claim of ` 15.91 Crs as supplementary capacity charges for the period from 2008-09 to 2015-16. The claim materially differs from the amount determined by the company based on details available at our end and the same has been communicated to M/s KPCL. Pending clarification relating to their working which is required for ascertaining its corrections, the claim raised by KPCL has not been accounted in FY 2016-17 and treated as contingent liability.

NOTE: 29 EMPLOYEE COSTS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code 29.1 Salaries and Wages

75.1 29.1.1 Salaries 15312.85 15770.76 Series 29.1.2 Over Time 75.2 " 277.40 327.02

29.1.3 Dearness Allowance 75.3 " 5668.91 5035.05

29.1.4 Other Allowance 75.4 " 2215.92 2332.08

29.1.5 Bonus 75.5 " 393.38 546.43

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NOTE: 29 EMPLOYEE COSTS (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code Sub Total 23868.46 24011.34

Medical Expenses 29.2.1 75.6117 198.01 231.78 reimbursement 29.2.2 Leave travel assistance 75.6127 0.24 0.41

75.6176+ Earned leave 29.2.3 75.6177+ 1093.85 1169.92 encashment 75.6167 Earned leave 29.2.4 encashment - retired 75.6187 643.29 586.96

employees Payment to helpers / 75.6297, 29.2.5 employees of Monsoon 69.95 40.63 75.6307 Gang Sub Total 2005.34 2029.70

29.3 Staff Welfare expenses 75.7 Series 188.47 293.47

75.8107+ 75.8407+ 75.8307+ 75.8607+ 29.4 Terminal Benefits 5478.74 6430.54 75.8807+ 75.8907+ 75.8317+ 75.8707 Sub Total 5667.21 6724.01

Less : Employees Cost 29.5 75.9007 - - - Capitalized TOTAL 31541.01 32765.04

29.6.1 Employment Benefits:

29.6.2.1 The Company makes contribution for Pension and Gratuity to KPTCL / ESCOM's Pension and Gratutiy Trust based upon the acturial valuation of the Trust. For employees who have joined the Company on or after 01.04.2006 the penison plan is according to New Defined Contributary Pension Scheme.

29.6.2.2 As per ‘KPTCL and ESCOM’s Pension & Gratuity Trusts’ Order No. KEPGT/KC0123/P7/2015-16/ CYS-58 BANGALORE Dated 23rd Feb 2016. the

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Monthly Contribution rates towards Pension and Gratuity are as below.

Pension Contribution Gratuity Contribution From To on Basic Pay + on Basic Pay + Dearness Allowance Dearness Pay 01.04.2013 31.03.2014 32.01% 6.03% 01.04.2014 Until further 33.02% 6.06% Onwards orders

29.6.2.3 The contribution is being paid to the P&G Trust based on the actuarial valuation as intimated by the Trust from time to time.

29.6.2.4 Leave encashment & family benefit fund is on cash basis, payable as per company’s rules.

29.6.3 Subsidized Lighting Benefits to Employees:

Difference between power purchase cost and subsidized rate on free lighting provided to the employees of KPTCL including employees on deputation to CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED, MYSORE in the service area of the Corporation is recognized as expenditure in the books of the company. However the same is treated as perquisites to the concerned employees while assessing taxable Income of such employees.

29.6.4 Managerial Remuneration (`in lakhs) Managing Director Director (T) Expenses 2016-17 2015-16 2016-17 2015-16 Salaries 9.98 8.37 16.07 11.72 Ex-gratia 0.11 0.01 0.05 0.04 Travelling Expenses 2.97 2.82 0.73 1.55 House Rent 5.29 5.02 0.00 0.00 Total 18.35 16.22 16.85 13.31

NOTE: 30 FINANCIAL COSTS-INTEREST AND OTHER BANK CHARGES (` In lakhs)

Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code

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30.1 Interest Expenses

Interest on Other Loans/ 30.1.1 Deferred Credits Interest on Over draft 30.1.2 78.5007 524.72 221.96 SBM 78.5407+ Interest on Loan from 30.1.3 78.5417+ 5571.56 4623.01 REC 78.5107 Interest on Loan from 30.1.4 78.5117 39.45 0.00 REC (Short Term) Interest on Loan from 30.1.5 78.5127 0.00 0.00 Bank of India (Capex) Interest on Loan from 30.1.6 Syndicate Bank - UNIP 78.5137 7.21 0.00

(Long Term) Interest on APDRP Loan 30.1.7 78.5447 7.89 89.87 from REC Interest on Loan from 30.1.8 78.5607 7244.97 6654.25 Commercial Banks Interest on APDRP Loan 30.1.9 78.5617 162.09 185.24 from GOK Interest on Loan from 78.5847 30.1.10 541.10 614.64 PFC 78.5097 Interest on Loan from 30.1.11 GOK-Energisation of 78.5917 0.00 2.56

Irrigation Wells Interest on PFC Loan for 30.1.12 78.5978 213.32 0.00 RAPDRP Interest on consumer 30.1.13 78.6 3811.02 3807.71 Deposits Interest on belated 80.1087 to 30.1.14 payments 2764.93 705.21 80.2667 (Power purchase) Guarantee Commission to 30.1.15 78.8687 0.00 0.00 GOK

78.8817+ 78.8837+ 78.8617+ Other interest and 30.1.16 78.8677+ 115.30 47.48 Finance Charges 78.8647+ 78.8827+ 78.8967

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Sub Total 21003.55 16951.94 Less:Interest and 30.2 Finance charges 78.9 1283.52 1283.52 1921.78 1921.78 Capitalized Total Finance Costs 19720.03 15030.15

NOTE: 31 DEPRECIATION AND AMORTIZATION EXPENSES (NET) (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code Depreciation on Fixed 31.1 Assets Amortisation of Lease Hold 31.1.1 77.1107 1.32 1.32 Land 77.1206+ 31.1.2 Depreciation on Buildings 253.10 226.28 77.1207 Depreciation on Hydraulic 31.1.3 77.1307 11.70 9.50 Works 77.1406+ 31.1.4 Depreciation on Civil works 2.89 2.38 77.1407 77.1504+ Depreciation on Plant and 31.1.5 77.1506+ 3604.47 2919.36 Machinery 77.1507 Depreciation on lines,cable, 31.1.6 77.1607 10571.48 8459.66 network etc., 31.1.7 Depreciation on Vehicles 77.1707 8.41 9.12

Depreciation on furniture, 31.1.8 77.1807 27.48 19.27 fixtures Depreciation on Office 31.1.9 77.1907 71.04 38.77 equipments Depreciation on intangible 77.1917+ 31.1.10 205.17 0.00 Asset-Software 77.1918 Total 14757.07 11685.65

Depreciation on Released 31.2 Assets Depreciation on Released 31.2.1 Good Asset- Plant and 77.1517 0.00 57.71 Machinery Depreciation on Released 31.2.2 77.1617 0.00 2.46 Good Asset- lines, Cable,

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NOTE: 31 DEPRECIATION AND AMORTIZATION EXPENSES (NET) (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3.2016 No Code network etc Sub-Total 0.00 60.18

Depreciation (Net) 14757.07 11745.83

31.3 The revised rate of Depreciation stated in Annexure-1 as per notification by CERC vide Notification No.L-7/145 (160)/2008- CERC dated 19th January 2009 has been adopted with effect from 01.04.2009. 31.4 Depreciation is calculated annually based on straigt line method over the useful life of the asset under historical cost. 31.5 Depreciation on all assets is provided up to 90% of the original cost. Residual value of 10% is maintained in the books except for intangible assets 100% Depreciation is charged.

31.6 Plant and Machinery costing `500/- or less individually are written off fully in the year in which they are installed and put to use.

31.7 Depreciation is charged from the first year of operation. In case of operation of the assets for part of the year, depreciation is charged on Prorata basis. 31.8 In respect of released assets depreciation is charged up to the date of dismantling and not for the whole year as was done in the earlier years. 31.9 Rates of Depreciation are not in conformity with the rates prescribed in Schedule II, of the Company’s Act 2013, but followed the CERC Regulations.

NOTE: 32 OTHER EXPENSES ( ` In lakhs) Sl. Account Particulars As at 31.3.2017 As at 31.3.2016 No Code 32.1 Repairs

32.1.1 Plant and Machinery 74.1 Series 2585.82 2234.08

32.1.2 Buildings 74.2 " 223.15 117.70

32.1.3 Civil Works 74.3 " 173.94 134.63

32.1.4 Lines, Cables Net Work Etc., 74.5 " 1275.76 1418.37

32.1.5 Vehicles 74.6 " 15.28 14.68

32.1.6 Furnitures and Fixtures 74.7 " 0.04 0.00

32.1.7 Office Equipments 74.8 " 2.85 4.94

Sub-Total 4276.83 3924.40

32.2 A & G Expenses

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NOTE: 32 OTHER EXPENSES ( ` In lakhs) Sl. Account Particulars As at 31.3.2017 As at 31.3.2016 No Code 76.1017 & 32.2.1 Rent, Rates & Taxes 161.67 170.50 76.1027 Service tax-payment to Central 32.2.2 Excise Customs and Service 76.1087 84.03 100.68 Tax Department Pagers cellular phones E-mail, 76.1117 & 32.2.3 Telephone, Trunk call, 76.1127 213.13 137.44

Telegrams and Telex Charges 76.1177 76.1137 & 32.2.4 Postage 11.37 12.35 76.1147 Revenue Receipt Stamps 76.1157+ 32.2.5 1029.02 631.87 /Computer billing 76.1167 32.2.6 Legal Charges 76.1217 37.81 15.29

Audit Fee includes 32.2.7 Statutory Audit fees `4,25,000 76.1227 7.78 5.73

and Tax Audit Fee `1,25,000/- 32.2.8 Consultancy Charges 76.1237 15.01 36.95

76.1257 to 32.2.9 Other Professional Charges 3620.33 2027.34 76.1307 76.1317 to Conveyance & Travel 32.2.10 76.1397+ 1114.88 965.69 expenses 76.1327 Sub-Total 6295.02 4103.83

32.3 OTHER EXPENSES

76.1517& 32.3.1 Fees & Subscriprtion 126.61 104.52 76.1507 32.3.2 Books periodicals and dairies 76.1527 13.39 24.24

32.3.3 Printing & Stationery 76.1537 109.50 100.11

32.3.4 Factory License Fees 76.1547 - -

32.3.5 Advertisement Expenses 76.1557 23.44 61.00

Computer stationary and 32.3.6 76.1567 15.91 10.30 floppies 32.3.7 Contributions 76.1577 8.09 81.44

32.3.8 Electricity Charges 76.1587 107.61 97.31

Administrative and General 32.3.9 76.1597 15.55 99.15 Expenses related to KPTCL /

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NOTE: 32 OTHER EXPENSES ( ` In lakhs) Sl. Account Particulars As at 31.3.2017 As at 31.3.2016 No Code ESCOMS Pension & Gratuity Trust 32.3.10 Water Charges 76.1607 2.53 14.80

Expenditure related to EESL 32.3.11 76.1657 306.60 292.69 for energy savings Expenses towards consumer 32.3.12 76.1707 12.99 7.43 relation / education 76.1627+ Entertainment, secret service 32.3.13 76.1837+ 0.00 0.00 grant 76.1647 Maintenance Charges of 32.3.14 76.1717 0.00 0.00 DTLMS Revenue Expenditure incurred 32.3.15 76.1917 96.03 0.00 on Software Transaction charges paid to 32.3.16 76.1957 0.00 6.38 revenue collecting agencies Transaction charges paid to 32.3.17 revenue collecting agency 76.1967 17.57 9.96 (Mobile one) 76.1907+ 32.3.18 Miscellaneous expenses 113.73 88.28 76.7627 76.2017+ Freight & other Material related 32.3.19 76.2107 to 15.70 25.56 expenses 76.2707 Vehicle running expenses 32.3.20 76.2407 16.97 17.50 (store) Advertisement of Tenders, 32.3.21 76.2607 30.06 13.59 Notices & Others Sub-Total 1032.29 1054.27

32.4 Other Debits

Assets Decommissioning 32.4.1 77.5507 76.57 78.21 Costs Small & Low Value items 32.4.2 77.6107 0.38 10.96 Written Off Losses Relating to Scraped 32.4.3 77.7 series 168.86 38.84 Assets

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NOTE: 32 OTHER EXPENSES ( ` In lakhs) Sl. Account Particulars As at 31.3.2017 As at 31.3.2016 No Code 32.4.4 Material Cost Variance 79.1107 0.00 0.00

Bad & Doubtful Debts Written 79.4107+ 32.4.5 112.17 63.96 off 79.4207 Provision for Bad & Doubtful 32.4.6 Debts provided for dues from 79.4607 311.05 126.37 consumers Bad & Doubtful Debts Provided 32.4.7 79.4807 189.73 45.93 for others Miscellaneous losses and 32.4.8 79.5 Series 4878.20 114.51 Write offs Sub-Total 5736.96 478.79

Prior Period Expenses/ 32.5 Losses: Short Provision for Power 32.5.1 83.1007 967.01 269.71 Purchase Operating Expenses of 32.5.2 83.3007 7.13 12.38 previous years Employee costs relating to 32.5.3 83.5007 123.42 94.61 previous years Depreciation under provided in 32.5.4 83.6007 1071.98 1124.61 previous years Interest and other Finance 83.7007+ 32.5.5 charges relating to previous 28.29 106.03 83.8007 years Administrative Expenses - 32.5.6 83.8207 134.27 160.33 Previous Year Materials related expenses - 32.5.7 83.8407 87.57 124.00 Previous Year Other Expenses relating to 32.5.8 83.8507 3645.35 494.43 prior periods Sub-Total 6065.03 2386.09

TOTAL 23406.14 11947.37

32.6 Rent recovered from employees is accounted as income. Likewise the HRA paid to the emloyees is accounted as expenditure. HRA paid to employees is treated as perquisites to the concerned, while assessing the I.T recoverable from the said

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employees. 32.7 Provision for bad and doubtful debts is made in the accounting Divisions at 4% (as per para 4.2 of Annexure V of ESAAR, 1985) on the net balance of Sundry Debtors for sale of power outstanding as at the end of the year till 2009-10. 32.7.1 During 2010-11, Policy has been changed as per specially constituted committee recommendation, the provision for bad and doubtful debts has been provided in the

following manner.

To treat the quantum of actual arrears outstanding under permanently 32.7.2 disconnected installations under LT1 (BJ installations consuming more than 18 units), LT2, LT3, LT5 and HT tariff, wherever action has been taken under “Recovery of dues Act”, as the provision for Bad and doubtful of recovery.

32.7.3 Not to consider the dues of IP (irrespective of disconnection), water supply & streetlight dues as bad and doubtful of recovery. 32.8 Disclosure of transactions with Related parties as required by the Accounting Standard-18 32.8.1 In view of paragraph 9 of AS18, no disclosure is required as regards related party relationships with other state-controlled enterprises and transactions with such enterprises. Other disclosures as required under AS-18 refer note No.29.6.4

NOTE: 33 Regulatory Income / Expenses (` In lakhs)

Sl. Account Particulars As At 31.3.2017 As At 31.3. 2016 No Code

33.1 Regulatory Income

Income on account

33.1.1 of Regulatory Assets 61.9187 51798.60 46446.00

/ Truing up subsidy TOTAL 51798.60 46446.00

33.2 The Company is engaged in operation of Supply of Electricity to the consumers covered under its jurisdiction. The rates are regulated by the Honb’le Karnataka Electricity Regulatory Commission (KERC). As per section 62 of Electricity Act 2003, the CESC is filing tariff application yearly with Regulatory Commission for determination of tariff. The Regulatory Commission determines the tariff as per procedures laid in section 64 of Electricity Act 2003. The Company collects tariff from consumers as approved in the tariff order issued by the Regulatory Commission.The Honb’le KERC through its Tariff Orders allow recovery of defeicits in subsequent periods besides through truing up orders. In this back ground, the Company has accounted the regulatory asset of ` 517.99 Crs being recognition of ` 638.40

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Crs of additional regulatory asset computed towards the provisional gap expected to be considered by KERC for recovery in subsequent years and reversal of ` 120.41 Crs created in FY16. Thus the regulatory Assets as on 31.03.2017 is as follows: Non Current Asset - ` 982.44 Crs (PY ` 344.05 Crs)

Other Current Asset - ` Nil (PY ` 120.41 Crs)

NOTE: 34 TAX EXPENESES (` In lakhs) Sl. Account Particulars As At 31.3.2017 As At 31.3. 2016 No Code 34.1 Tax Expenses

34.1.1 Current Tax 81.1017 669.02 0.00

34.1.2 Deferred Tax 81.1027 1905.56 1497.25

34.1.3 Short Provision for IT 83.8107 0.00 0.00

TOTAL 2574.58 1497.25

34.2 Segment Reporting

34.2.134.2. The Corporation operates only in one sector viz., Distribution of Electricity. Accordingly accounts are compiled for this sector. Hence Segmental reporting is not applicable to the Corporation. The company neither has more than one business segment nor more than one geographical segment hence segment reporting as required under AS-17 is not applicable for the company. 34.3 Amounts due to Small and Medium Enterprises as required under the Micro, Small & Medium Enterprises Development Act, 2006 are not ascertained in the absence of ready related information. The company has not received any confirmations from the registered suppliers as of date, in respect of whom disclosures are required to be made under the said Act. 34.4 Providing insurance on fixed assets involves huge expenditure and it is not economical, therefore fixed assets have not been insured.

34.5 Previous year’s figures have been regrouped, reclassified and re-arranged wherever necessary.

34.6 Foreign exchange earnings: NIL(PY Nil) Foreign exchange expenses: NIL(PY Nil) 34.7 Value of Imports on CIF basis: NIL

34.8 Earnings per Share PARTICULARS As at 31.3.2017 As at 31.3.2016 Net Profit / Loss after tax (In lakhs) (A) 2144.37 792.28

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Weighted Average number of shares outstanding during the year for Basic and 508565434.00 326515309.00 Diluted EPS (B) Basic and Diluted Earnings per Share 0.66 0.24 A/B in (`)

34.9 Contingent Liabilities:

34.9.1 The KPTCL vide its circular letter.No. FA (A&R)/C (AP&A)/DC (A&C)/ AAO-1/CYS-104/Dt.15.03.2007 has communicated to CESC that to create the

additional fixed cost paid by the KPTCL for supply of power by Thannir Bhavi Power Corporation Limited (TBPCL) as Regulatory Assets & Liabilities. The Amount is to be passed on to the consumers through tariff approval from KERC and the amount collected from the consumers is to be passed on to KPTCL. The Hon'ble KERC is yet to approve this matter. In view of the above facts, the company has treated this as contingent and thus not recognized the Regulatory Assets and Liabilities of ` 51.39 Crore in the books of accounts.

34.9.2 Interest claimed by KPCL on belated payments is under dispute and hence the same is not provided. As Per KPC the Interest Payable by CESC for the year 2014-15 is ` 20599.38 lakhs and as per CESC amount was ` 13570.19 lakhs. Further, for FY 15-16 Interest as per KPC is ` 20440.27 lakhs (after accounting

` 683.41 lakhs) and as per CESC the interest is ` 13995.16 lakhs (after

accounting ` 683.41 lakhs) and this interest is treated it as contingent liability. Since, KPCL has not furnished the final interest figures for the FY17, for the

outstanding dues for current FY 2016-17, interest has been provisionally accounted as ` 724.75 Lakhs. This is subject to revision upon the receipt of the

final bill from KPCL for FY 2016-17.

PCKL vide letter no. PCKL/A 12/331/2010-11/5289-99 Dated 26.02.2015, 34.9.3 addressed to UPCL has stated that the infirm power payments to UPCL were not admitted as the same was not considered in the final order of CERC. Hence the

infirm energy charges accounted has been withdrawn from the accounts during current year. As per PCKL the determination of tariff, including infirm energy

charges of UPCL is still pending in APTEL vide RP No. 19/2015 and Appeal No. 108/2014.

In the light of the above, the infirm energy charges of UPCL, amounting to ` 141360618.00 has been shown as contingent liability.

Further during 2015-16 fixed charges amounting to ` 6,39,16,688/- has not been

admitted by CESC since M/s UPCL has claimed the fixed charges for 342.66 days

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instead of 366 days sighting the remaining 23.34 days as force-majeure event.

The admissibility of force-majeure event claimed by UPCL has not been decided by PCKL. Further pending outcome of any truing up petition filed by UPCL with

CERC, the amount of ` 6,39,16,688/- is kept as contingent liability. 34.9.4 The Hon’ble KERC in its Suo Motto Order’s Dated 31.03.2016 has ordered to

collect ` 3.40 instead of ` 3.70 per unit in respect of M/s Savitha Oil Technologies Ltd & Avon Cycles Ltd duly taking into considered the date of Commission.

Further, the orders of Hon’ble KERC orders has been challenged by the Generators before the “Hon’ble APTEL” and stayed the orders of KERC,

Consequent to this the amount involved in ` 1.71 Crs and this amount is treated as Contingent Liability.

34.9.5 M/s KPCL has preferred a claim of ` 15.91 Crs as supplementary capacity charges for the period from 2008-09 to 2015-16. The claim materially differs from

the amount determined by the company based on details available at our end and the same has been communicated to M/s KPCL. Pending clarifications relating to

their working which is required for ascertaining its correctness, the claim raised by KPCL has not been accounted in FY 2016-17 and treated as contingent Liability. Others

34.9.6 Claims against Company not acknowledge as debt

Sl.No Particulars No. Amount in `

1 Revenue

(a) Court cases Up to 1 Year 3 394994.00

1 Year to 3 Year 2 102426.00 More than 3 Years 1 98509.00

Total 6 595929.00

(b) Appeals

Up to 1 Year 15 842865.00

1 Year to 3 Year 2 1759792.00 More than 3 Years 16 3853339.00

Total 33 6455996.00

2 Service Tax 4078987.00

Interest 8 5129867.00

Penalty 3633197.00 3 Legal cases (Other than

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revenue cases)

Up to 1 Year 50 9129580.00

1 Year to 3 Year 106 33098583.00

More than 3 Years 79 19883056.00

Total 235 62111219.00

4 Income tax (TDS Default) 4267589.45

Total 86272784.45

34.9.7 Details of specified Bank Notes (SBN) held and transacted during the period th th from 8 November, 2016 to 30 December, 2016 is provided in the Table below:-

Other Denomination Particulars SBNs Total notes

No’s Amount in ` No’s Amount in ` No’s Amount in ` Closing cash in hand as 12491.00 7205500.00 18663.00 1946947.00 31154.00 9152447.00 on

08.11.2016 (+) Permitted receipts - Receipts against dues 920036.00 546712400.00 2056882.00 582342045.00 2976918.00 1129054445.00 on Electricity Consumption being utility bill in nature

(-) Permitted 0.00 0.00 0.00 0.00 0.00 0.00 Payments

(-) Amount deposited in 932527.00 553917900.00 2019717.00 574058408.00 2952244.00 1127976308.00 Banks

Closing cash in hand as on 0.00 0.00 55828.00 10230584.00 55828.00 10230584.00 30.12.2016 The above data have been complied by the Management and relied upon by the Auditors.

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Note 35: SIGNIFICANT ACCOUNTING POLICIES For the Period ended 31.03.2017

1. Basis for Preparation of financial statements:

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting principles generally accepted in India, including the Accounting Standards notified under the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention and have been prepared on the basis of going concern concept and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

The Company is a distribution licensee under Section 14 of the Electricity Act, 2003. The provisions of the Electricity Act, 2003 read with the rules made there under prevails wherever the same are inconsistent with the provisions of the Companies Act, 2013 in terms of Section 174 of the Electricity Act, 2003. Further, in certain areas where different accounting treatment has been prescribed under GAAP and Electricity (Supply) (Annual Accounts) Rules 1985 (ESAAR,1985) for an item of income / expenditure or Asset / Liability, the accounting treatment prescribed under ESAAR 1985 has been adopted as per Section 174 of the Electricity Act, 2003. Further, assets and liabilities created under applicable electricity laws continue to be depicted under appropriate heads in the Balance Sheet.

2. Use of Estimates:

In the preparation of the Financial Statements, the Company has made estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reported period to conform with the generally accepted accounting principles. Differences between actual results and estimates are recognized in the period in which results are known / materialized.

3. FIXED ASSETS:

a) Fixed assets acquired / constructed are valued at actual cost of acquisition / construction or at standard rate as the case may be, during the current year.

b) Assets transferred by M/s. Karnataka Power Transmission Corporation Ltd, (KPTCL) at the time of transfer of Assets ` 566.77 Cr have been stated at the cost of transfer indicated by KPTCL in document.

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c) In respect of Assets shared with KPTCL, the ownership and title vests with KPTCL and as such, they are not reflected in the books of accounts of the Corporation. But the share of maintenance expenditure in respect of such assets is charged to Profit & Loss account and the accounts system was not enabled to monitor the same.

d) Contribution, Grants and Subsidies towards cost of capital assets have not been reduced from the cost of assets but have been treated as “Capital Reserve”. The depreciation pertaining to such fixed assets is withdrawn from the grants for implementing AS-12.

4. DEPRECIATION:

a) The revised rate of Depreciation stated in Annexure-1 as per notification by CERC vide Notification No.L-7/145 (160)/2008- CERC Dated 19th January 2009 has been adopted with effect from 01.04.2009.

b) Depreciation is calculated annually based on straight-line method over the useful life of the asset under historical cost.

c) Depreciation on all assets is provided up to 90% of the original cost. Residual value of 10% is maintained in the books.

d) Plant and Machinery costing ` 500/- or less individually are written off fully in the year in which they are installed and put to use.

e) Depreciation is charged from the first year of operation. In case of operation of the assets for part of the year, depreciation is charged on Prorata basis.

f) In respect of released assets depreciation is charged up to the date of dismantling and not for the whole year as was done in the earlier years.

g) Rates of Depreciation are not in conformity with the rates prescribed in Schedule II, of the Companies Act 2013, but followed the CERC Regulations.

5. CAPITAL WORKS IN PROGRESS:

a. Materials issued to Capital Works In Progress are valued at standard rate as per O & M Schedule of rates for the year. O&M Rates are revised annually.

b. Expenses allocable as Capital Expenditure and incurred by Divisions / Circles / Zones and Administrative Offices are not capitalized, since the costing methods and procedures are not fully evolved yet.

c. Interest on borrowing cost is capitalized on the specific projects which take substantial period of time to get ready for intended use.

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6. INVENTORY:

Inventories - Stores and Spares are valued at lower of cost determined on weighted average basis and net realizable value wherever applicable. Net Realizable value is the estimated selling price less estimated costs necessary to make sale.

7. RECOGNITION OF REVENUE SURPLUS:

The Corporation follows the method of recognizing the Revenue surplus (Net Profit after tax) for the year as per CERC guidelines, at a benchmark of 15.5% ROE.

8. RETIREMENT BENEFITS:

a) Pension & Gratuity are provided based on the rates prescribed by ‘KPTCL & ESCOMs Pension & Gratuity Trusts’. As per ‘KPTCL and ESCOM’s Pension & Gratuity Trusts’ Order No. KEPGT/KCO123/P7/2015-16/Cys-58 BANGALORE Dated 23rd FEB-2016. The Monthly Contribution rates towards Pension and Gratuity are as below.

Employee From To Rate On Benefit

01.04.2013 31.03.2014 32.01% Basic pay + Pension 01.04.2014 onwards Until further orders 33.02% D.P and DA

01.04.2013 31.03.2014 6.03% Basic pay + Gratuity 01.04.2014 onwards Until further orders 6.06% D.P

b) Leave encashment & family benefit fund is provided based on the cash Basis, payable as per company’s rules.

9. REVENUE RECOGNITION:

a) Revenue from sale of energy is accounted on accrual basis.

b) The sale of energy is as per the tariff fixed by the Karnataka Electricity Regulatory Commission (KERC).

c) Revenue for the year is also adjusted by estimating un-billed revenue of previous year and current year.

d) Regulatory asset is recognized in the accounts considering the approved KERC orders and expected truing up orders / benefits based on similar precedents confirming certainty of realisability of such asset.

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10. PROVISIONS FOR BAD & DOUBTFUL DEBTS:

Provision for bad and doubtful debts is made in the accounting Divisions at 4 % ( as per para 4.2 of Annexure V of ESAAR, 1985) on the net balance of Sundry Debtors for sale of power outstanding as at the end of the year till FY2009-10.

From 2010-11 Policy has been changed as per specially constituted committee recommendation, the provision for bad and doubtful debts has been provided in the following manner.

a. To treat the quantum of actual arrears outstanding under permanently disconnected installations under LT1 (BJ installations consuming more than 18 units), LT2, LT3, LT5 and HT tariff, wherever action has been taken under “Recovery of dues Act”, as the provision for Bad and doubtful of recovery.

b. Not to consider the dues of IP (irrespective of disconnection), water supply & streetlight dues as bad and doubtful of recovery.

11. ACCOUNTING OF GRANTS:

a) Grants received for capital expenditure are included in Capital Reserves.

b) Contributions received from customers for capital expenditure are included in capital reserve.

c) Other Revenue grants are credited to the Profit & Loss Account.

12. POWER PURCHASE:

a) The Power Purchase cost is initially recognized based on the Government of Karnataka Order No. EN 131 PSR 2003 Dated 10th May 2005 for accounting the cost of power based on the billings made by Power Generators Pool allocated to CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED, MYSORE by the Government of Karnataka. The variation between the power allocations by Govt. of Karnataka and the actual power is being reconciled through energy balancing which is carried out every year and adjustments to the power purchase cost at KERC approved rate is accounted every year based on such reconciliation.

b) The KERC in its Tariff Orders determines the transmission charges based on the installed generation capacity of the state.

13. Borrowing Cost:

Borrowing cost attributable to the acquisition, construction or production of qualifying assets are added to the cost of those assets up to the date when the assets are ready for intended use.

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14. Earnings per Share:

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity share if any.

15. Accounting for Taxes on Income:

Tax expense comprises of current and deferred tax, Current income tax is measured expected to be paid to the tax authorities in accordance with the Income- tax Act, 1961. Deferred income taxes reflects the net impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits.

At each Balance Sheet date the Company re-assesses unrecognized deferred tax asset. The Company recognises all unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Note No. 36 Effect on Accounts:

Pursuant to the observations made by the Comptroller and Auditor General of India under Sec. 143(6)(a) of the Companies Act 2013 on the accounts of the company that were approved by the Board of Directors and subject to Statutory Audit on 11.08.2017, the accounts have been revised with the following impact.

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(` in Lakhs)

After Prior to Increased(+)/ Particulars Supplementary AG’s Audit Decreased(-) Audit by AG

Impact on Profit / loss 2144.37 2144.37 0.00

Impact on Reserves and surplus 6395.50 6395.50 0.00

Trade Payables 284975.94 286800.53 1824.60(+)

Total liabilities 291371.44 293196.03 1824.60(+)

Other Non-Current assets 120193.23 122017.83 1824.60(+)

Total Assets 120193.23 122017.83 1824.60(+)

Sd/- Sd/- Sd/- (A.Shivanna) (K.T. Mahanthappa) (D.Kiran) Chief Financial Officer Director (T) Managing Director

PLACE: MYSURU DATE: 21.09.2017

In terms of our report of even date attached herewith For Ganesan and Company Chartered Accountants

Sd/- (G.HARIGOVIND) Partner Membership No 206563

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Revenue Demand

2015-16 2016-17

Category ` in Lakhs % ` in Lakhs % LT-1 4695.09 1.66 5093.78 1.45

LT-2 37797.23 13.36 44092.46 12.51

LT-3 21456.92 7.58 23574.93 6.69

LT-4 102236.96 36.14 153128.09 43.45

LT-5 8932.38 3.16 9640.00 2.74

WS-LT-6 12097.21 4.28 17253.94 4.90 St.lt

LT-7 1710.18 0.60 2119.28 0.60

HT-1 18986.28 6.71 20406.74 5.79

HT-2 63378.52 22.40 63392.58 17.99

HT Others 2554.33 0.90 3271.48 0.93

Misc 9073.60 3.21 10451.78 2.97

Total 282918.70 100.00 352425.06 100.00

Revenue Collection 2015-16 2016-17

Category ` in Lakhs % ` in Lakhs % LT-1 3124.10 1.09 3297.09 0.83 LT-2 37497.12 13.04 42943.30 10.86 LT-3 21508.88 7.48 23490.92 5.94 LT-4 102502.35 35.65 153339.19 38.78 LT-5 8976.73 3.12 9525.75 2.41 WS-LT-6 13782.41 4.79 50545.00 12.78 St.lt LT-7 1754.14 0.61 2255.91 0.57 HT-1 23092.86 8.03 22455.79 5.68 HT-2 63455.47 22.07 62293.53 15.75 HT Others 2693.77 0.94 2941.34 0.74 Misc 9109.44 3.17 22369.12 5.66 Total 287497.28 100.00 395456.94 100.00

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CLOSING BALANCE

2015-16 2016-17 Category ` in Lakhs % ` in Lakhs % LT-1 2487.45 1.70 4284.14 4.12 LT-2 6610.00 4.53 7759.16 7.46 LT-3 403.33 0.28 487.33 0.47 LT-4 32686.02 22.39 32474.91 31.23 LT-5 566.59 0.39 680.84 0.65 LT-6 38924.88 26.67 5633.82 5.42 WS/St.lt LT-7 -858.71 -0.59 -995.34 -0.96 HT-1 3668.17 2.51 1619.12 1.56 HT-2 578.83 0.40 2439.31 2.35 HT Others 515.85 0.35 950.04 0.91 TOTAL 85582.41 58.63 55333.33 53.21 Misc 60376.56 41.37 48663.71 46.79 Grand 145958.97 100.00 103997.04 100.00 Total

Collection Efficiency (in %)

Category 2015-16 2016-17

LT-1 66.54 64.73

LT-2 99.21 97.39

LT-3 100.24 99.64

LT-4 100.26 100.14

LT-5 100.50 98.81

WS-LT-6 St.lt 113.93 292.95

LT-7 102.57 106.45

HT-1 121.63 110.04

HT-2 100.12 98.87

HT Others 105.46 89.91

Misc Interest 100.40 214.02

Total 101.62 113.89

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Sales - Mus

2015-16 2016.17 Category Sales % Sales % LT-1 102.75 1.90 102.19 1.63 LT-2 897.60 16.61 951.83 15.20 LT-3 259.57 4.80 274.45 4.38 LT-4 2319.58 42.91 3161.70 50.50 LT-5 136.56 2.53 140.59 2.25 LT-6 262.86 4.86 323.74 5.17 Ws&Stl.) LT-7 12.95 0.24 14.32 0.23 HT 1413.37 26.15 1291.46 20.63 Total 5405.24 100.00 6260.28 100.00

Customer Base 2015-16 2016-17 Category Installations Installations % % In Nos. In Nos. LT-1 497094 17.44 496789 16.76 LT-2 1701751 59.71 1775815 59.90 LT-3 214783 7.54 226005 7.62 LT-4 324144 11.37 345783 11.66 LT-5 37238 1.31 38835 1.31 WS-LT-6 42547 1.49 45422 1.53 St.lt LT-7 30649 1.08 34307 1.16 HT 1833 0.06 1924 0.06 Total 2850039 100 2964880 100

Closing Balance

` in lakhs

Particulars Principal Interest Total

Closing Balance 33158.00 10478.00 43636.00 as on 31.07.2008

Closing Balance 31126.25 37196.71 68322.97 as on 31.03.2017

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Statement showing the details of Capital Work in Progress for FY 2016-17 (Amount in `) Opening Balance Closing Balance A/c as on 1.4.2016 CWIP OB+CWIP CWIP 31.3.2017 A/C Description Head Should tally with Incurred Incurred Catogarized Should tally MF-2016 with MF-2017 14.1407 Lines transformers etc- extension(GP) 16105941.84 35051558.47 51157500.31 33564281.31 17593219.00 11KV and below distribution works under 14.1437 -402486.00 4019499.00 3617013.00 0.00 3617013.00 APDP works 11KV and below distribution works under 14.1438 662631.00 0.00 662631.00 0.00 662631.00 R- APDRP works 14.1447 CWIP-RGGVY Works 5725921.00 5997569.00 11723490.00 507086.00 11216404.00 14.1457 R APDRP works 147783444.00 6860034.37 154643478.37 4316591.00 150326887.37 CWIP-11KV & below distribution works 14.1458 under R-APDRP works (IT 162233277.85 67613967.12 229847244.97 4526918.07 225320326.90 Implementation) - Part A CWIP-11KV & below distribution works 14.1468 under R-APDRP works (System 377355869.00 670707192.68 1048063061.68 -73658.00 1048136719.68 Improvements)-Part B 14.1489 CWIP Incurred under Smart Grid Project 0.00 72933525.00 72933525.00 0.00 72933525.00 CWIP - Transmission Lines - 14.1506 0.00 116497.00 116497.00 63072.00 53425.00 Transformers etc. Improvements (GP) Lines transformers etc improvements- 14.1507 232803447.12 691287879.48 924091326.60 645856466.16 278234860.44 (GP)

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14.1607 Reduction of losses in lines 230958523.75 203950286.95 434908810.70 261824918.41 173083892.29

14.1707 Transformers by similar capacities 86843241.18 577628830.07 664472071.25 574664294.71 89807776.54

14.1717 CWIP - DTLMS 0.00 44185172.00 44185172.00 43318877.00 866295.00

14.1727 CWIP - MMS 0.00 35120000.00 35120000.00 0.00 35120000.00

14.2207 SPA schemes 2518074.48 19147.00 2537221.48 55685.00 2481536.48

14.2507 Nirantara Jyothi Scheme(NJY) 610128566.20 1270081852.33 1880210418.53 1529680009.46 350530409.07

14.3007 Village electrification (GP) 570331.09 0.00 570331.09 0.00 570331.09

14.3207 Power supply to IP sets (GP) 14421797.84 135569671.42 149991469.26 124776535.08 25214934.18

IP sets under own your transformer 14.3257 464501.87 0.00 464501.87 0.00 464501.87 scheme

IP sets serviced under OYT scheme 14.3267 31016962.74 956713466.58 987730429.32 947350325.30 40380104.02 (Un-Authorised)

14.3517 Meter Existing of BJ Installations 172512.00 0.00 172512.00 0.00 172512.00

14.3767 CWIP Draught Relief Works 38308.00 0.00 38308.00 0.00 38308.00

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CWIP expenditure incurred under 14.3917 Deendayal Upadhyaya Gram Jyothi 0.00 42923470.00 42923470.00 0.00 42923470.00 Yojana (DDUGJY)

14.4007 Service connections 143072854.86 474638277.65 617711132.51 486032906.39 131678226.12

14.4017 Metering of IP sets 1098187.00 64455.00 1162642.00 0.00 1162642.00

14.5027 Buildings 38130928.90 89117794.00 127248722.90 87215882.00 40032840.90

14.7087 Furniture and fixtures 7700.00 4369464.48 4377164.48 4273892.48 103272.00

14.7088 Furniture and fixtures - RAPDRP 920064.00 -22272.00 897792.00 897792.00 0.00

14.8097 Office equipments 13231318.28 34414787.12 47646105.40 45415938.56 2230166.84

14.8098 Office equipments - RAPDRP 2432295.07 371481.58 2803776.65 2803776.65 0.00

14.8107 Tools and tackles 3466613.23 16776251.42 20242864.65 15834094.33 4408770.32

14.8117 Mobile Phones 0.00 990577.00 990577.00 990577.00 0.00

CWIP - Survey and Investigation 14.9107 3475000.00 -3475000.00 0.00 0.00 0.00 Expenses on Projects

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Statement showing the details of Capital Work in Progress for FY 2016-17 (Amount in `) Opening Balance Closing Balance A/c as on 1.4.2016 CWIP OB+CWIP CWIP 31.3.2017 A/C Description Head Should tally with Incurred Incurred Catogarized Should tally MF-2016 with MF-2017 Capital Expenditure categorized R- 14.9458 APDRP-11KV & below Distribution works -156426760.87 10418148.20 -146008612.67 62440192.30 -208448804.97 (IT implementation Part A Capital Expenditure categorized 14.9468 R-APDRP-11KV & below Distribution work -309202181.00 -235452989.00 -544655170.00 319398844.68 -864054014.68 (System Improvements -Part B Capital Expenditure Categorised under 14.9489 0.00 0.00 0.00 67343091.00 -67343091.00 Smart Grid Project. CWIP expenditure incurred under 14.9917 Deendayal Upadhyaya Gram Jyothi 0.00 0.00 0.00 36754527.00 -36754527.00 Yojana (DDUGJY) Total A 1669019465.43 5253427242.16 6922446707.59 5325805596.96 1596641110.63 B = 55.1007 Total 0.00 0.00 0.00 967076050.87 0.00 Grand Total 1669019465.43 5253427242.16 6922446707.59 6292881647.83 1596641110.63

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Statement of Material Stock Account A/c 22.6107 (` in lakhs) Sl. A/c Account Head 2016-17 2015-16 No. Code A. 22.6107 Opening Stock 6704.53 6515.38 B RECEIPTS 1 22.2107 Material Purchases 7047.67 14157.96 2 22.3607 Material returned by Contractors 22.45 44.90 Accessories (Other than Main Assets returned 3 22.3707 166.80 123.58 on dismantling of assets) 4 22.4107 Material transferred inwards 1815.30 1758.74 5 22.4117 Material received from VVNL 0.00 0.00 6 22.4127 Material received from KPTCL / Other ESCOMS 0.00 3.29 7 22.4607 Material Manufactured inwards 0.00 0.00 8 22.4617 Fabricated materials returned 0.00 0.00 9 22.5107 Material Stock Adj. A/c (Dr.) 4.45 2.53 10 22.7317 Cost of Material & Labour in TPs works 0.00 0.00 TOTAL RECEIPTS 9056.67 16091.00 C OPENING STOCK + RECEIPTS 15761.20 22606.37 D I S S U E S 1 22.3107 Material issued capital 6747.84 10985.30 2 22.3117 Material issued (Imprest) 0.00 0.00 3 22.3207 Material issues (O&M) 2101.82 3006.13 4 22.3407 Material issued to Contractors 81.44 0.00 5 22.3607 Material returned by Contractors 34.97 0.00 6 22.4207 Material transferred outward 1815.34 1757.18 7 22.4217 Material transferred to VVNL 0.00 0.00 8 22.4227 Material transferred to KPTCL / Other ESCOMS 0.87 0.00 9 22.5107 Material Stock adjustment A/c (Cr.) 13.57 0.00 10 22.7607 obsolete materials in stock 0.00 73.66 TOTAL ISSUES 10795.84 15914.94 E 22.6107 CLOSING BALANCE OF STOCK (C-D) 4965.36 6704.53

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Average Realization Rate From Sale Of Power 2016-17 (Amount in `)

Account Code Units Sold Average Opening Add: Net Less: No.of Revenue Revenue Closing % of Realisation provision for Provision for Collection for Closing Account Head-LT Category Tariff Demand Consu Units balance as on Demand as per Demand as Balance Units Rate Per Unbilled Withdrawal the Year 16-17 Balance Series mers (MU) 01.04.2016 DCB per Accounts Series Sold Unit (`) Revenue of Revenue

BJ/KJ-Tariff subsidy LT-1 61.6267 28.6267 367500 35.19 0.56 6.79 0.00 238952864.46 0.00 0.00 238952864.46 238952864.46 0.00

BJ/KJ LT-1 61.1017 23.1017 129289 66.99 1.07 4.08 266604028.65 269598637.53 4072371.21 60887.00 273610121.74 90001556.41 450212593.98

Dom.Ltg, Non-Dom, Non-Com Ltg & Govt. Hospital Ltd, Dom Combined 61.1027 23.1027 Ltg.(Aeh), Non-Dom, Non-Coml. Comb. LT-2 61.1037 23.1037 Ltg. & Htg. Motive Power, & Govt. 1775815 951.83 15.20 4.67 810105470.92 4397172969.40 44518945.27 101923.00 4441589991.67 4283173751.69 968521710.89 a & b 61.1117 23.1117 Hospitals for Handicapped Orphans, 61.1127 23.1127 aged & Institute & Pvt. Professional & Other Pvt.Edu.Inst.

61.1157 23. 1157 Comml.Ltg. Heating & Motive Power LT-3 226005 274.45 4.384 8.66 124911118.47 2353789158.02 22698464.30 89618.00 2376398004.31 2346021512.64 155287610.14 61.1167 23.1167

Irrigation pumpsets, Lift Irrigation 61.1187 Schemes/ Societies(upto & inclusive of LT-4a 23.1187 338682 3143.13 50.207 4.87 3774627739.55 15242489264.68 49755961.28 -201706.60 15292446932.56 15244194930.47 3822879741.64 61.6277 10HP)

Irrigation pumpsets, Lift Irrigation LT-4b 61.1217 23.1217 195 1.02 0.016 5.56 21439304.21 5765189.97 -131035.24 -13663.00 5647817.73 5783707.49 21303414.45 Schemes/ Societies(Above 10HP)

Private Horticultural Nuirseries, Coffee, 61.1207 23.1207 LT-4c 6906 17.56 0.281 3.74 102983801.04 64318829.32 802936.56 -636258.10 65758023.98 43849954.77 124891870.25 Tea, Coconut & Arecanut Plantations 61.1287 23.1287

61.1297 23.1297 Industrial, Non-Industrial Htf. & Motive LT -5 a 61.1307 23.1307 38835 140.59 2.246 6.86 95370644.36 962142407.34 2182708.01 0.00 964325115.35 950585811.58 109109948.13 Power Including Lighting to d 61.1317 23.1317 61.1337 23.1337

Water Supply-Sewarage Pumping- LT-6a 61.1407 23.1407 24228 220.22 3.518 4.89 2647798083.63 1059441388.03 16400101.59 0.00 1075841489.61 3356718905.64 366920667.60 VP/TP & Others

Public Lighting- VP/TP & Others LT-6b 61.1417 23.1417 21194 103.51 1.653 6.47 1292391307.55 661979571.36 7536607.75 0.00 669516179.10 1694368017.99 267539468.67

Temporary Power Supply LT-7 61.1457 23.1457 34307 14.32 0.229 14.84 -77324507.85 211756660.48 823670.82 0.00 212580331.31 225469651.55 -90213828.09

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 180

12th Annual Report 2016-17

BRP II arrears recovered from 61.1527 0.000 0.00 0.00 0.00 0.00 Permanantly disconnected consumers TOTAL OF LT 2962956 4968.82 79.371 5.16 9058906990.52 25467406940.60 148660731.54 -599199.70 25616666871.83 28479120664.69 6196453197.66

Public Water Supply & Sewarage HT-1 61.2507 23.2507 125 418.24 6.681 4.90 527758417.39 2035432128.92 11973583.70 0.00 2047405712.61 2239079815.63 336084314.38 pumping

0.00 0.00 0.00 0.00 0.00 0.00

Industrial, Non-Industrial, Non- HT-2a 61.2557 23.2557 876 634.73 10.139 7.71 564180493.95 4914434052.86 -23442154.97 0.00 4890991897.88 4822760675.80 632411716.03 Commercial & Railway Traction

Commercial HT-2b 61.2507 23.2567 566 117.24 1.873 9.17 86249980.26 1062854638.66 12623196.53 0.00 1075477835.19 1048299475.03 113428340.43

23.2837 Hospital & Educational Institutions HT-2c 61.2547 237 48.07 0.768 7.37 37411219.57 351256045.85 3149804.52 0.00 354405850.37 342956158.61 48860911.33 23.2847

Irrigation & Agricultureal Farms, Private HT-3 23.2607 Horticultural Nurseries, Coffee & Tea & 61.2557 90 66.02 1.055 2.93 62761906.87 195166573.00 -1547452.61 64281.00 193554839.38 159851785.49 96464960.76 a&b 23.2627 Arecanut Plantations.

Residential Apartments & Hospitals. HT-4 61.2567 23.2807 12 3.73 0.060 6.28 4383334.29 23169291.88 289214.74 0.00 23458506.62 24009421.41 3832419.50

Sundry Debrs for Sale of power- HT-5 61.2837 HT-5 23.2707 18 3.42 0.055 31.95 8670134.24 108141651.81 1283296.30 0.00 109424948.11 109021535.34 9073547.01 Temporary Supply 61.2847

61.2607 TOTAL OF HT 1924 1291.46 20.629 6.73 1291415486.57 8690454382.98 4329488.19 64281.00 8694719590.17 8745978867.30 1240156209.44 61.2627 TOTAL OF (LT+HT) 61.2807 2964880 6260.28 100.000 5.48 10350322477.09 34157861323.57 152990219.73 -534918.70 34311386462.00 37225099531.99 7436609407.10

FAC 61.2707 23.2917 39416610.06 38925548.34 4324637.00 43250185.34 45166779.28 37500016.12

Cross Subsidy 0.00 98265250.54 0.00 0.00 98265250.54 98265250.54 0.00

Misc. Receipts From Consumer (Other 0.00 150753141.58 0.00 0.00 150753141.58 150753141.58 0.00 than Interest)

Less: Provision for Withdrawal of 61.2917 23.8 15797455.51 0.00 0.00 2017935.84 -2017935.84 0.00 13779519.67 revenue Demand

Less: Provision for Doubtful Dues from 23.9 569461361.20 0.00 0.00 323123220.48 -323123220.48 0.00 246338140.72 Consumers

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 181

12th Annual Report 2016-17

Subsidy receivable from GOK towards BJ/KJ waiver amount and additional subsidy & Additional Tariff Subsidy 61.2507 28.6257 1287488395.79 0.00 906900000.00 0.00 906900000.00 0.00 2194388395.79

amount receivable from GOK (126.69 Crs)

Subsidy receivable from GOK towards 61.2547 28.6267 0.00 238952864.46 0.00 0.00 238952864.46 213900000.00 25052864.46 BJ/KJ

Subsidy receivable from State Govt. towards free supply of power to IP Sets 61.2557 28.6277 543988826.10 15244382114.97 0.00 0.00 15244382114.97 12755500000.00 3032870941.07

upto 10HP

LT+HT+MISC 61.2567 2964880 6260.28 100.000 5.48 10389739087.15 34445805264.03 157314856.73 -534918.70 34603655039.46 37519284703.38 7474109423.23

Misc. Receipts From Consumer 61.2607 23.7007 5968045593.35 398340053.33 0.00 0.00 398340053.33 2441826489.48 3924559157.20 (Interest) 61.2627 23.3017 Sundry Debtors for electricity Tax 46.3007 431111874.52 1194507611.02 0.00 0.00 1194507611.02 1160423502.56 465195982.99 23.3027

182 Chamundeshwari Electricity Supply Corporation Limited, Mysuru

12th Annual Report 2016-17

IP-Set & BJ/KJ Subsidy Statement for 2016-17

` In Lakhs

No. of Installations Consumption (In Mu) Opening Demand Subsidy Closing Sl. Balance Released balance Particulars Un - Un - Un - No. Metered Total Metered Total (As on Metered Total by GoK for as on Metered Metered Metered 01.04.2016) 2016-17 31.03.2017

1 IP-Set ( Upto 10 HP) 13074 322816 335890 70.96 3072.17 3143.13 5439.89 3429.42 149014.40 152443.82 127555.00 30328.71

BJ/KJ ( UP to 18 units 2 343172 0.00 343172 35.19 0.00 35.19 0.00 2389.53 0.00 2389.53 2139.00 250.53 PM)

3 BJ/KJ waiver subsidy 205.88 205.88

Gap to be paid by GOK 4 for FY 2012-13 as per 12669.00 12669.00 KERC truing -up Order

Additional Subsidy to be received as per 5 Government order No.En 9069.00 9069.00 67 PSR 2017 Bangalore Dated 31.07.2017

Total 356246 322816 679062 106.15 3072.17 3178.32 27383.77 5818.95 149014.40 154833.35 129694.00 52523.12

Note:- In addition to the above, the amount of ` 1862.73 lakhs refunded in respect of IP set payment made by farmers from 01.04.2001 to 31.03.2003 is yet to be receivable from GoK

Govt. Press, Vikasa Soudha Unit, Bengaluru. W.D. 173 / P5

Chamundeshwari Electricity Supply Corporation Limited, Mysuru 183