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VW $QQXDO5HSRUW +NNMUOMGNMRDPL]OMGNMGNODT°PL¤H 7*4*0/ $ZRUOGFODVVHQHUJ\HQWLW\ZLWKFRPPLWPHQWWRHQYLURQPHQWDQG VRFLDOYDOXHV .*44*0/ 7RSODQGHYHORSDQGRSHUDWHHQHUJ\UHVRXUFHVHIÀFLHQWO\ 7RDGRSWVWDWHRIWKHDUWWHFKQRORJLHV 7RDFKLHYHSHUIRUPDQFHH[FHOOHQFHE\IRVWHULQJZRUNHWKRVRI OHDUQLQJDQGLQQRYDWLRQ 7REXLOGVXVWDLQDEOHYDOXHEDVHGUHODWLRQVKLSZLWKVWDNHKROGHUV WKURXJKPXWXDOWUXVW 7RXQGHUWDNHUHKDELOLWDWLRQDQGUHVHWWOHPHQWRISURMHFWDIIHFWHG SHUVRQVZLWKKXPDQIDFH Corporate Overview ¾ Board of Directors ¾ Reference Information ¾ Key Financial Performance Highlights ¾ Chairman’s Speech ¾ Directors’ Brief Profile ¾ Business Overview Report BOARD OF DIRECTORS As on 27th September, 2019 Shri D.V. Singh Chairman & Managing Director Shri Raj Pal Shri T. Venkatesh Economic Adviser, MoP, GoI Principal Secretary (Irrigation & Govt. Nominee Director Water Resources), GoUP Govt. Nominee Director Shri Vijay Goel Shri J. Behera Shri R.K. Vishnoi Director (Personnel) Director (Finance) Director (Technical) Shri Bachi Singh Rawat Shri Mohan Singh Rawat Prof. Maharaj K. Pandit Independent Director Independent Director Independent Director 4 31st Annual Report 2018-19 REFERENCE INFORMATION Registered Office Company Secretary & Compliance THDC India Limited Officer (A Joint Venture of Government of India & Ms Rashmi Sharma Government of U.P.) Ganga Bhawan, Pragatipuram, CIN:U45203UR1988GOI009822 By-Pass Road, Rishikesh-249201 Bhagirathi Bhawan (Top Terrace) Contact No. (0135) 2435842, 2439309 & Bhagirathipuram, Tehri Garhwal – 249001 2437646 Contact No. (0135) 2473403,2439309 Fax: (0135) 2439442 & 2436761 Fax: (0135) 2439442 & 2436761 Email: [email protected] Website: www.thdc.co.in C o r p o r a t e O f fi c e Registrar & Share Transfer Agent THDC India Limited Karvy Computershare Private Limited Ganga Bhawan, Pragatipuram, By-Pass Road Karvy Selenium Tower – B, Plot 31-32, Rishikesh-249201. Gachibowli, Financial District, Nanakramguda, Uttarakhand Hyderabad-500032 Tel: +91-40-33211000, Email: [email protected] Statutory Auditors Cost Auditors M/s P.D. Agrawal & Co. M/s S.C. Mohanty & Associates, New Delhi 364 A, Govindpuri, Haridwar-249403 M / s K . G . G o y a l & A s s o c i a t e s , N e w D e l h i M/s K.B. Saxena & Associates, New Delhi Debenture Trustee Bonds Listed at VISTRA ITCL INDIA LIMITED National Stock Exchange of India Limited A-268, 1ST Floor, Bhishma Pitamah Marg, Bombay Stock Exchange Defence Colony, New Delhi-110024. Depositories Bankers/Financial Institutions Central Depository Service (India) Limited 1. Punjab National Bank Regd. Office: 17th Floor, P J Towers, Dalal 2. State Bank of India Street, Fort, Mumbai-400001. 3. World Bank 4. Jammu and Kashmir Bank National Securities Depository Limited 5. Power Finance Corporation of India Limited Trade World, A wing, 4th Floor, Kamala Mills 6. Rural Electrification Corporation of India Compound, Limited L o w e r P a r e l , M u m b a i - 4 0 0 0 1 3 Credit Rating Agency Secretarial Auditor CARE (Credit Analysis & Research Ltd) M/s P.S.R. Murthy India Ratings 178 RPS Flats, Sheik Sarai Phase-1, New Delhi-110017. 5 KEY FINANCIAL PERFORMANCE HIGHLIGHTS (Amount in lac) 2018-19 2017-18 2016-17 2015-16 2014-15 A. Revenue 1 Revenue from Operations 276796 218510 209474 246649 239716 2 Other Income 8233 3809 14123 1481 1077 3 Deferred Revenue on account of Irrigation Component 6915 6822 4 Less: Depreciation on Irrigation Component 6915 6822 5 TOTAL REVENUE 285029 222319 223597 248130 240793 B. Expenses 6 Employees Benefits Expense 41183 30649 25425 22857 22438 7 Generation, Admnistration & Other Expenses 22132 20342 19513 18003 17855 8 Tariff Adjustment (Regulatory Liability) 0 0 0 0 0 9 Provisions 4985 0 445 9 12638 10 Bad Debts written off 0 0 0 0 7801 11 Prior Period 13992 12 Extraordinary items 16146 34830 13 TOTAL EXPENDITURE 68300 50991 61529 75699 74724 14 GROSS MARGIN(PBDIT) (5-13) 216729 171328 162068 172431 166069 15 Depreciation & Amortisation 55500 57452 52557 49663 48386 16 GROSS PROFIT(PBIT) (14-15) 161229 113876 109511 122768 117683 17 Finance Cost 17568 22787 29106 32887 43878 18 Profit before net movement in regulatory deferral 143661 91089 80405 89881 73805 account balance and Tax (16-17) 19 Net Movement in Regulatory Deferral Account Balance 7501 Income/ (Expense) 20 Profit Before Tax (18+19) 151162 91089 80405 89881 73805 21 Income Tax 32275 19056 17154 24252 18376 22 Deferred Tax Asset -6676 -5083 -8142 -16269 -13686 23 Profit for the period from contnuing operations (20-21- 125563 77116 71393 81898 69115 22) (PAT) 24 Other Comprehensive income -299 563 -414 -301 25 Income Tax on OCI- Deferred Tax Assets -104 195 144 104 26 Total Comprehensive Income (23+24+25) 125160 77874 71123 81701 69115 C. Assets 27 Tangible and Intangible Assets (Net Block) 683115 732801 780687 752460 795672 28 Capital Work In Progress 455714 395027 303529 239099 167453 29 Long term Loans and Advances 4079 4483 4694 4702 41181 30 Deferred Tax Assets (Net) 89104 82532 70941 62655 45794 31 Other Non- Current Assets 120942 71547 93795 63999 143 6 31st Annual Report 2018-19 32 Current Assets 197328 159640 227149 232220 257434 33 Regulatory Deferral Account Debit Balance 7501 34 Total Assets 1557783 1446030 1480795 1355135 1307677 D. Liabilities 35 Equity Share Capital 365488 362743 359888 355888 352888 Other Equity 36 Reserves and Surplus 562590 488384 450193 415528 334405 37 Contribution towards Irrigation Component 0 0 83458 89989 96538 38 Total Other Equity 562590 488384 533651 505517 430943 39 Long Term Borrowings 265201 241530 404185 349792 327566 40 Other Long Term Liabilities and Provisions 132517 135478 61395 54666 55340 41 Short term Borrowings 121840 64663 38724 3677 43634 42 Current Maturity of Long Term Debt 54437 101283 37503 38431 43436 43 Other Current Liabilities 49397 45636 45449 47164 53870 44 Regulatory Deferral Account Credit Balance 6313 6313 45 Total Liabilities 1557783 1446030 1480795 1355135 1307677 - - - - - 46 Net Worth ( 35+36) 928078 851127 810081 771416 687293 47 Capital Employed ( 46+39-28) 737565 697630 910737 882109 847406 48 Dividend For the year 42312 25610 22100 16200 14000 49 Value added (14) 216729 171328 162068 172431 166069 50 Number of Employees 1891 1922 1936 1990 2013 51 Number of share (in Lakh) (Par value of `1000/- share) 365.49 362.74 359.89 355.89 352.89 E. Ratios Earning per share including net movement in regulatory deferral account balance (Par value of `1000/- share) 344.38 213.14 198.85 230.52 197.60 (in `) Current Ratio [32 / (41+42+43)] 0.87 0.75 1.87 2.60 1.83 Debt to Equity ((39+42) / 46) 0.34 0.40 0.55 0.50 0.54 Return On capital Employed (PBIT/ Capital Employed) 21.86% 16.32% 12.02% 13.92% 13.89% (16 / 47) Return on Net Worth (26 / 46) 13.49% 9.15% 8.78% 10.59% 10.06% Net Profit to Revenue from Operations (26 / 1) 45.22% 35.64% 33.95% 33.12% 28.83% Book value per share (in `) (46/51) 2539.28 2346.36 2250.93 2167.58 1947.62 Value added per employee (` in Lakh) (49/50) 114.61 89.14 83.71 86.65 82.50 Dividend Per Share (in `) (Share of `1000/- each) 115.77 70.60 61.41 45.52 39.67 F. Operating Performance Generation (M.U.) 4687.18 4540.94 4430.00 4348.29 4214.18 Note: 1. Data for the Financial year 2014-15 is on the basis of earlier GAAP whereas data for other Financial Years is on the basis of Ind AS compliant financial statements. 7 KEY FINANCIAL PERFORMANCE CHARTS 8 31st Annual Report 2018-19 Distribution 9 Shri D.V. Singh, CMD, THDCIL handing over Final Dividend Cheque to Hon’ble MoS (IC), Power & NRE, Govt. of India, Shri R.K. Singh at Delhi 10 31st Annual Report 2018-19 Shri D.V. Singh, CMD, THDCIL handing over Interim Dividend Cheque to Shri Alok Kumar, Principal Secretary (Energy), GoUP at Lucknow 11 CHAIRMAN’S SPEECH Dear Members, the variability of wind and solar power. Therefore, st It is indeed my privilege to welcome you to 31 incentivizing hydro sector, especially Pumped Annual General Meeting of your Company, and to Storage Plants is the need of the hour as they present Report of the Auditor’s & Director’s Report balance the grid for demand–supply fluctuations. for the year 2018-19 along with Audited Annual The Pump Storage Plants, in right terms are the Accounts. With your kind permission, I would take best friend as they provide stability to electricity them as read. grid and should be suitably compensated for its I feel honoured to state that biggest ever role. Investment Approval for any THDCIL’s Project has With our continuous efforts towards par excellence, been granted by Govt. of India to your maiden your company has received prestigious “HR Gold 1320 MW Khurja Super Thermal Power Project Award” for training excellence in 2018-19 from “Ek and Amelia Coal Mine Project in March-2019 Kaam Desh Ke Naam”, a renowned NGO. “CSR amounting to `11089.42 Cr. and `1587.16 Cr. Innovation and Leadership award 2019” was also respectively. Foundation Stone of the Project was bestowed by PHD Chamber of commerce, New also laid by Hon’ble Prime Minister of India on Delhi. “CBIP Award 2019” was also presented to th 9 March-2019. your company for Best Performing Utility in Hydro As per statistics released by CEA in March 2019, Power Sector. the total installed capacity of power projects in Past Year Review India is 3,56,100 MW. Out of which, contribution of Hydro is only 13 %. It is a matter of grave concern, I feel delighted to apprise that during 2018-19, your as it is less than ideal thermal hydro mix of 60:40. Company’s all four Operational Plants i.e. 1000 MW Govt. of India has taken steps in this direction by Tehri HPP, 400 MW Koteshwar HEP, 50 MW Patan implementing new Hydro Policy in March-2019 to Wind Power Plant and 63 MW Devbhumi Dwarka encourage the Hydro Power Sector.