Mangalore Electricity Supply Company Limited (A Government of Karnataka Undertaking)

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Application before Hon’ble Karnataka Electricity Regulatory Commission for approval of Annual Performance Review for FY-17 and Aggregate Annual Revenue Requirement / Expected Revenue from Charges for FY-19 and Tariff Petition for FY-19 under MYT Frame work.

Dated: 30th November 2017

Corporate Office, “MESCOM BHAVANA”, Bejai, Kavoor Cross Road, Mangaluru-575 004.

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Mangalore Electricity Supply Company Limited (A Government of Karnataka Undertaking)

Registered Office: Corporate Office, Phone / Fax : 0824-2410116 “MESCOM BHAVANA”, E_Mail : [email protected] Bejai, Kavoor Cross Road, CIN: U40109KA2002SGC030425 Mangaluru- 575 004.

No.: SEE(C&RP) / EE(RA) / ERC-2019/ 2017-18 / 7133 Date: 30-11-2017 Encl.:

The Secretary, Karnataka Electricity Regulatory Commission, 6th & 7th Floor, Mahalaxmi Chambers, No.9/2, MG Road, Bangalore-560 001.

Sir,

Sub.: Application for approval of Annual Performance Review for FY-17 and Aggregate Annual Revenue requirement / Expected Revenue from Charges for FY-19 and Tariff Petition for FY-19 under MYT Frame work.

I am directed to submit herewith the application for approval of Annual Performance Review for FY-17 and Aggregate Annual Revenue requirement / Expected Revenue from Charges for FY-19 and Tariff Petition for FY-19, for kind approval of the Hon’ble Commission.

Further, application fee of Rs.76,37,500/- [Rupees Seventy Six Lakh Thirty Seven Thousand Five Hundred Eighty only] has been credited to KERC A/c No.34957749266 (State Bank of India, M.G.Road, Bengaluru, IFSC Code SBIN0005778) through RTGS.

Yours faithfully,

Superintending Engineer (Ele.,) (Commercial), MESCOM, Corporate Office, Mangaluru.

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BEFORE THE KARNATAKA ELECTRICITY REGULATORY COMMISSION AT BANGALORE Filing No.: ...... Case No.: ......

IN THE MATTER OF: An application for approval of Annual Performance Review for FY-17 and Aggregate Annual Revenue Requirement / Expected Charges from Revenue for FY-19 and Tariff Petition for FY-19 of Mangalore Electricity Supply Company Limited under Section 61 & 62 of the Electricity Act, 2003 read with relevant provisions of KERC (Tariff) Regulations including KERC (Terms & Conditions for Determination of Tariff for Distribution and Retail Sale of Electricity) Regulations, 2006 AND IN THE MATTER OF: Mangalore Electricity Supply Company Limited (herein after referred to as MESCOM), an Electricity Distribution Company incorporated under the provisions of the Companies Act, 1956 and having its main office at “MESCOM BHAVANA”, Bejai, Kavoor Cross Road, Mangaluru-575 004.

I, Nagaraja G.P. S/o Late Puttaswamy, aged 51 years residing at Mangaluru do hereby solemnly affirm and state as follows;

1. I am the Superintending Engineer (Ele.,) (Commercial) of MESCOM and am duly authorized to make this affidavit.

2. I say that on behalf of MESCOM, I am now filing this Petition under the provisions of Electricity Act, 2003 for approval of Annual Performance Review for FY-17 and Aggregate Annual Revenue Requirement / Expected Revenue from Charges for FY-19 and Tariff Petition for FY-19.

3. I further say that the statements made and financial data presented in the aforesaid Petition are as per the records of the Company and on the information received from the concerned officials and believed to be true to the best of my knowledge. Further, all the statements and financial data subsequent to March 31, 2017 are based on estimations and correct to the best of my belief.

4. Solemnly affirmed at Mangaluru on this day 30-11-2017 that the contents of the above affidavit are true to the best of my knowledge and belief, no material information has been concealed there from.

(Nagaraja G.P.) Place: Mangaluru Superintending Engineer (Ele.,) (Commercial), Date: 30-11-2017 MESCOM, Corporate Office, Mangaluru.

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Mangalore Electricity Supply Company Limited (A Government of Karnataka Undertaking)

INDEX Contents Page No. Covering Sheet & Affidavit i to iv

CHAPTER-01 PREAMBLE 01

CHAPTER-02 MESCOM PROFILE 02-03

CHAPTER-03 COMPLIANCE TO DIRECTIVES 04-12

CHAPTER-04 ANNUAL PERFORMANCE REVIEW 13-24

CHAPTER-05 SALES PROJECTIONS 25-45

CHAPTER-06 ANNUAL REVENUE REQUIREMENT 46-58

CHAPTER-07 REVENUE INCOME & DEFICIT 59

CHAPTER-08 TARIFF REVISION PROPOSAL 60-75

CHAPTER-09 PROPOSED ELECTRIC TARIFF SCHEDULE 76-110

CHAPTER-10 NEW PROPOSALS 111-113

CHAPTER-11 PRAYER 114

ANNEXURE-1 115-118

ANNEXURE-2 119

ANNEXURE-3 120-230

ANNEXURE-4 231

ANNEXURE-5 232

ANNEXURE-6 233

ANNEXURE-7 234-239

FORMATS: A1 TO A4 240-250

FORMATS: D1 TO D24 251-350

KERC Preliminary Observations 351-387

Replies to Preliminary Observations 388-464

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MESCOM: ARR / ERC & Tariff Petition for Fy-18: Ch.1-Preamble

CHAPTER-1

PREAMBLE 1.1 MESCOM is filing its Annual Performance Review for FY-17 and projected Annual Revenue Requirement for the financial years FY-19 as per KERC (Terms and Conditions for Determination of Tariff for Distribution and Retail Sale of Electricity) Regulations, 2006. As per the provisions of the regulations, APR/ERC/ARR/Tariff application is required to be submitted before 30th November of every year.

1.2 Structure of the filing comprises of; a. MESCOM Profile. b. Compliance to Hon’ble Commission’s Directives. c. Annual Performance Review for FY-17. d. Sales Projection for FY-19. e. Aggregate Annual Revenue Requirement for FY-19. f. Revenue Income and Revenue Deficit. g. Tariff Revision Proposal for FY-19. h. Proposed Electric Tariff Schedule for FY-19. i. New Proposals j. PRAYER.

1.3 It is submitted that the actual details for the period from FY-12 to FY-17 and projection for FY-19 are furnished along with this application.

1.4 The Hon’ble Commission is requested to consider the proposal of Annual Performance Review for FY-17 and projected Aggregate Annual Revenue Requirement for the financial years FY-19. MESCOM submits that it has made sincere efforts to comply with the requirements of KERC (Tariff) Regulations and KERC (Terms and Conditions for Determination of Tariff for Distribution and Retail Sale of Electricity) Regulations, 2006. :-:-:-:-:

MESCOM: ARR / ERC & Tariff Petition for Fy-18: Ch.2-Profile

CHAPTER-2

MESCOM Profile

2.1 In June-2002, KPTCL was split into 4 ESCOMs namely Bangalore Electricity Supply Company Ltd. (BESCOM), Mangalore Electricity Supply Company Ltd. (MESCOM), Gulbarga Electricity Supply Company Ltd. (GESCOM), Hubli Electricity Supply Company Ltd. (HESCOM).

MESCOM was subsequently split into 2 Companies, namely, Mangalore Electricity Supply Company (with first five districts namely Dakshina Kannada, Udupi, Shimoga, Chickmagalore and Kodagu) and Chamundeshwari Electricity Supply Corporation with Head Quarters at Mysore to cater retail supply for 4 Districts namely Mysore, Chamarajnagar, Mandya and Hassan with effect from 01-04-2005.

With effect from 01-04-2006, Madikeri Division (Kodagu district) was transferred from MESCOM to CESC to come into effect from the financial year 2006-07.

2.2 The organization set-up is having 2 O&M Zone, 4 O&M Circles, 13 O&M Divisions, 59 O&M Sub Divisions and 230 O&M accounting / non-accounting sections.

2.3 Consumer, Consumption and Revenue Profile as on 30-09-2017: No. of Consumption Revenue Consumers (Mus) (Rs. In Cr.) Category (As at the end of (From Apr-17 to (From Apr-17 to Sep-17 Sep-17) Sep-17) BJ/KJ 192451 8.54% 23.17 0.97% 14.90 0.92% Domestic 1477295 65.56% 695.91 29.09% 406.60 25.12% LT-Commercial 201341 8.94% 183.70 7.68% 174.54 10.78% IP Sets 303270 13.46% 789.48 33.00% 409.30 25.29% LT-Industrial 29233 1.30% 67.52 2.82% 52.53 3.25% WS & St.Lt. 34530 1.53% 90.65 3.79% 67.50 4.17% Others 13325 0.59% 9.92 0.41% 16.53 1.02% HT 1942 0.09% 532.06 22.24% 476.69 29.45% Grand Total 2253387 100% 2392.42 100% 1618.59 100%

MESCOM: ARR / ERC & Tariff Petition for Fy-18: Ch.2-Profile

2.4 Employee Strength:

Sanctioned Working Cadres Vacant % Vacancy Strength Strength Group-A 263 210 53 20.15% Group-B 318 185 133 41.82% Group-C 2603 1621 982 37.73% Group-D 5671 3298 2273 40.08% On Deputation 21 16 5 23.81% Total 8876 5330 3546 39.95%

2.5 Salient Features of MESCOM:

Sl. Particulars Statistics No. (As on 30-09-2017) 1 Area Sq. Km. 26222 2 Districts No.s 4 3 Taluks No.s 22 4 Population Lakhs 61.55 5 KPTCL Sub-stations (66 kV &above) No.s 84 9 MESCOM Sub-stations (33 kV) No.s 38 10 Distribution Transformer Centers No.s 61495 11 HT lines Ckt. Km 34104 8 LT lines Ckt. Km 78920 6 Net Fixed Assets (As on 31-03-2017) Rs. in Cr. 1140.52 7 Consumers Lakhs 22.22 12 Energy Sales in Fy-17 MU 4794.42 13 Rev. Dem.(including Tax & int.) in Fy-17 Rs. in Cr. 2909.11 14 Rev. Col. (including Tax & int.) in Fy-17 Rs. in Cr. 2885.90 15 Revenue Collection Efficiency in Fy-17 % 99.20%

:-:-:-:-:

Chapter -3

Compliance to Directives

1. Directives on conducting consumer interaction meeting at Subdivision level.

The Commission directs MESCOM to conduct Consumer Interaction Meetings chaired by the Superintending Engineers, in the O&M subdivisions according to a published schedule, once in every three months with a view to providing a forum to the consumers to get their grievances resolved. Further, the consumers shall be invited to such meetings in advance through emails, letters, local newspapers etc., to facilitate maximum consumers’ participation in such meetings.

Compliance by MESCOM:

MESCOM has conducted consumer interaction meetings in subdivisions chaired by the concerned Superintending Engineer of O&M Circle. The progress in this regard was submitted to commission in the review meeting held on 25.10.2017 at KERC Bangalore.

April -2017 to June-2017

Circle of No.of Received Complaints Complaints Sl. Subdivi Interaction Meetings Complaint solved at solved No sion Meeting conducted s the meeting afterwords

1 Mangalore 20 10 76 61 15 2 Udupi 11 7 37 32 5 3 Shimoga 16 12 63 52 11 Chikkmagalur 11 4 7 32 27 5 u Total 58 36 208 172 36

July -2017 to Sept-2017

Complaint Complaint Circle of Sub No.of Received Sl. s solved at s solved Interaction divisio Meeting Complaint No the after Meeting n s s meeting words

1 Mangalore 20 14 98 80 18 2 Udupi 11 8 47 32 15 3 Shimoga 16 10 39 36 3 Chikkmagalur 11 4 6 33 16 17 u Total 58 38 217 164 53

All Subdivisions in all circles were not covered due to urgency of SEE in attending other meetings and not available to cover the subdivision.

It was requested to relax the presence of Superintending Engineer in the consumer meeting in some of the meeting and commission agreed for the presence of EEs whenever SEE is not available due to official reasons.

Instruction were given to conduct meeting by giving wide publicity through newspaper, Emails etc., All the complaints received by MESCOM were resolved in spot /within agreed time.

2. Directive on preparation of energy bills on monthly basis by considering 15 minute’s time block period

In respect of EHT/HT consumers importing power through power exchange under Open Access, MESCOM shall implement the directive forthwith and the compliance regarding the same shall be submitted monthly from May, 2017 onwards, to the Commission, regularly.

Compliance by MESCOM:

MESCOM has billed HT/EHT consumers who are importing power from power exchange under Open access from April-2017 in 15 minutes block as directed by the Commission. There are 15 Consumers in MESCOM area under HT/EHT and the result is very good. The extra energy drawn from MESCOM during any 15 minutes block of a day is billed under Tariff of that category of consumer who opt for open access through power exchange.

3. Directive on Energy Conservation:

The Commission reiterates that MESCOM shall service all the new installations only after ensuring that the BEE ***** (Bureau of Energy Efficiency five-star rating) rated Air Conditioners, Fans, Refrigerators, etc., are being installed in the applicant consumers’ premises and the compliance thereon shall be reported to the Commission once in a quarter regularly.

Compliance by MESCOM:

MESCOM is regularly insisting all its power seeking consumers to install only BEE 5star equipments in their premises. Frequent persuasion has yielded results at various division /subdivision/section levels. Consumers are educated to use only star rated equipment to reduce power consumption.

4. Directive on Implementation of Standards of Performance (SoP):

The Commission reiterates its directive to MESCOM to continue to strictly implement the specified SoP while rendering services related to supply of power as per the KERC (Licensee’s Standards of Performance) Regulations, 2004. The compliance regarding the same shall be submitted to the Commission, regularly.

Compliance by MESCOM:

The Standards of performance as per the KERC (Licensee’s standards of performance) Regulation-2004.of MESCOM is officially uploaded in the MESCOM website mesco.in regularly. Action is taken to display the SoP in all subdivision /Divisions of MESCOM. The periodical reports are being sent to Hon’ble Commission regularly.

5. Directive on use of safety gear by linemen:

The Commission reiterates its directive that MESCOM shall ensure that all the linemen in its jurisdiction are provided with proper and adequate safety gear and the linemen shall use such safety gear provided to them while working on the network. The compliance in this regard shall be submitted once in a quarter to the Commission regularly.

Compliance by MESCOM:

MESCOM has issued safety equipment /Material to all its Lineman working on electricity line /Transformer. Recently training program is arranged with senior experienced officers of MESCOM at following places on the dates mentioned to section officers and above level forinforming their lineman to use safety gear while working on line and to properly earth the system while working on the line.

Udupi :12.09.2017 Puttur : 22.09.2017 Sagar : 07.10.2017 Shivamogga : 27.10.2017 Mangalore : 02.11.2017 Chikkmagaluru : 07.11.2017

November 2017 is declared by MESCOM as safety month by MESCOM and all AEE/AO are deputed to various section of MESCOM to impart training on safety for a day in each week with a timing between 8:30 to 10:00 AM. The feedback report is taken from the participants and awareness is given to avoid accident in future.

6. Directive on providing Timer Switches to Streetlights by the ESCOMs

The Commission reiterates its directive to MESCOM to provide timer switches to the existing street lights and also directs MESCOM to ensure that, all the new streetlight installations to be serviced and any extension/modification to be carried out to the existing streetlights.It is also instructed to service new street light installations only with timer switches besides taking necessary action for the same.

Compliance by MESCOM:

[ MESCOM has initiated the tender for providing timer switches to 18326 single phase street lights and 525 three phase street lights control points in its area. The Tender was called in the E procurement mode on 04.08.2017. The Techno-commercial bidder were opened on 31.10.2017 and 07.11.2017 and evaluation is under process.

7. Directive on load shedding

The Commission reiterates that MESCOM shall comply with the directive on load shedding and submit compliance reports to the Commission regularly.

Compliance by MESCOM:

Before carrying out Planned maintenance of distribution networks prior notification is being given in daily newspaper for the information of the consumers. In cities a scheduled day in a week is fixed for planned maintenance works and all defects are attended on that day only. Breakdown in system due to wind and rain are attended expeditiously to avoid long duration of interruption. The Load shedding of Urban /Rural 11KV feeders are carried out as per GOK order. Unplanned Load shedding is done to avoid the major mismatch between demand and supply as per the direction of the SLDC Bangalore.

8. Directive on Establishing a 24x7 Fully Equipped Centralized Consumer Service Center for Redressal of Consumer Complaints:

The Commission reiterates its directive to MESCOM to publish the complaint handling procedures / contact number of the Centralized Consumer Service Centre in the local media and other modes periodically for the information of the public and ensure that all the complaints of consumers are registered only through the centralized consumer service center for proper monitoring of disposal of complaints registered. The compliance in this regard shall be furnished regularly, to the Commission.

Compliance by MESCOM:

A 24x7 fully equipped centralized consumer service center for redressal of consumer complaints is operationalized in MESCOM at Kadri Mangalore from April-2017. The Helpline telephone Number is 1912. All the consumers complaints are registered with a docket having unique Id number. The operators will pass on the consumer complaints to respective section /subdivision to attend and simultaneously the message pass on to consumer mobile number. If the consumer is not satisfy the same complaint will be re-attended. The number complaint and its status will be reported regularly to Higher authorities of MESCOM.

MESCOM has agreed with KSRTC for Audio clip to be announce in 12 Nos. of KSRTC bus stand (in MESCOM area). Regarding the compliant handling procedure under helpline No 1912.

Around 58000 Nos. of MESCOM brochures are printed and distributed to consumers through subdivisions /sections for the procedure of bill payment, complaints handling, safety measure and energy saving for wide awareness to consumers.

9. Directive on Energy Audit:

ESCOMs were required to furnish to the Commission the following information regarding installation of meters to DTC’s.

a) Number of DTCs existing in the Company. b) Number of DTCs already metered. c) Number of DTCs yet to be metered. d) Time bound monthly programme for completion of work.

Compliance by MESCOM:

MESCOM is submitting the following data on metering of DTC’s as on Oct-2017.

No of DTC’s No. of DTC’s No. of DTC’s yet to existing in the metered as on Oct be metered. MESCOM -2017 61971 38597 23374

Action is being taken to meter the remaining DTC’s in phased manner depending on the capex proposed /approved by Commission.

Further, MESCOM is directed to submit to Commission the consolidated energy audit report for the FY17, as per the formats prescribed by the Commission vide its letter No: KERC/D/137/14/91 dated 20.04.2015.

The energy Audit of 11kV feeders is being submitted to be Hon’ble Commission regularly on the monthly basis. The formats A&B are not prepared due to improper data fetched from the DTC’s metered. The communication issue is creating unstability due to rural area which are not properly linked by the communication network. However MESCOM is striving hard to get DTC’s meter data remotely in proper time to match with in consumer data. The action is being taken to prepare the formats as designed by the Commission.

City energy Audit.

Sl.No. City-Town FY-17 Upto Aug- 17 1 Mangalore 3.94 3.30 2 Udupi 4.16 6.85 3 Shivamogga 6.22 6.94 4 Bhadravathi 10.47 10.39 5 Sagar 5.97 5.41 6 Chikamagaluru 9.42 9.86 7 Puttur 6.10 2.35 8 Bantwal 9.90 9.69 9 Shikaripura 6.76 7.37 10 Kadur 9.71 9.82 11 Tarikere 8.72 9.05 12 Beltangady 4.87 4.64 13 Sullia 2.48 2.47 14 Kundapura 5.76 5.49 15 Karkala 6.10 8.42 16 Soraba 9.95 9.16 17 Hosanagara 6.02 4.81 18 Thirthahalli 4.91 6.84 19 Mudigere 2.42 1.25 20 Koppa 4.51 3.83 21 Sringeri 4.70 4.90 22 NR Pura 5.17 3.84

10. Directive on NirantharaJyothi Feeder Separation:

MESCOM shall compute the IP-set consumption on the basis of energy meter readings available in the exclusive agricultural feeders at the substation levels.

Compliance by MESCOM:

The segregation of agriculture feeders under NJY scheme is taken up in Shivamogga and Chikkmagaluru divisions. The tender work is awarded to agency for 124 feeders in shivamogga and Chikkmagaluru. The work is under progress. After completion of the work, the segregated IP set feeders are monitored to calculate the consumption of IP sets.

11. Directive on Demand Side Management in Agriculture:

The Commission directs MESCOM to expedite the implementation of DSM measures in its jurisdiction and complete the same at the earliest and compliance thereon shall be submitted to the Commission.

Compliance by MESCOM:

MESCOM has taken the system study/ Load survey of 11KV feedersunder DSM by entrusting work to the TERI New Delhi. The agency has conducted visits to all divisions of MESCOM and consolidated the system data. Consumer survey is being done on the predominately feeding 11kv feeders by taking the data from MESCOM data base. Presently the industrial consumers are surveyed at various sections. A detailed proposal will be submitted to MESCOM and KERC by TERI by the end of Dec-2017. MESCOM will propose for implementation of suitable DSM based on the report.

12. Directive on Lifeline Supply to Un-Electrified Households:

The Commission directs MESCOM to expedite action to provide electricity to the un-electrified households and cover all the remaining households at the earliest and report compliance thereon to the Commission regarding the monthly progress achieved.

Compliance by MESCOM:

Electrification of unelectrified households is being done under DDUGJY by MESCOM through award under E-Tender. It is proposed to Electrify 35051 BPL Households and 41124 other than BPL Households under this scheme.

Under Decentralized distribution generation (DDG), 3 villages namely Shettyhalli,Chithrashettyhally and Urulugaluof Shivamogga district covering 123 households is considered for standalone solar system and the work is under progress.

13. Directive on Prevention of Electrical Accidents:

The Commission, reiterates its directive that MESCOM shall continue to take adequate measures to identify & rectify all the hazardous locations/installations existing in its distribution system under an action plan to prevent and reduce the number of electrical accidents occurring in the distribution system. The compliance thereon shall be submitted to the Commission every month, regularly.

Compliance by MESCOM:

Various measures are taken by MESCOM to reduce electrical accident in distribution network. Nov-2017 is declared as safety month. During this program each section is visited by AEE of another subdivision and safety aspects are explained to all lineman of the section. One day in each week is selected for this program between 8:30 am to 10:30 am. The causes of electrical accidents and remedial measure to be taken is explained in the program. Totally 57 such programs are arranged during the month Nov 2017.

The section Officers/ subdivision officers are trained separately by corporate officers during Sept and Oct month by arranging circle level programs in all 4 circles involving6 programs. The Hazardous locations are identified and rectified as and when noticed. The requirement of safety gear is taken regularly and provided within short time.

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MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.4-APR FY17

CHAPTER-4 ANNUAL PERFORMANCE REVIEW FOR FY-17

4.1 Based on the Annual Audited Accounts, MESCOM is proposing here below the Annual Performance Review for the financial year FY-17, for kind consideration of the Hon‟ble Commission.

4.2 Annual Performance Review for the financial year FY-17: The operating and financial performance of the Company in FY-17 is detailed in the foregoing paragraphs.

4.2.1 Operating Performance: a. Energy Sales:

Category wise actual energy sales in FY-17 as against the energy sales approved in Tariff Order-2016 are as below;

FY-16 MU FY-17 MU % % incr./Dec. Achievement As apprd. in Category Actuals Actuals w.r.t. FY-16 w.r.t. Apprd. T.O. 2016 Actuals Quantum LT-1:> 18 Units 13.78 14.59 13.93 1.09% -4.52% LT-1:=< 18 Units 27.86 - 27.03 -2.98% - LT-2a 1264.70 1384.25 1292.24 2.18% -6.65% LT-2b 13.68 12.94 13.82 1.02% 6.80% LT-3 329.87 341.71 342.31 3.78% 0.18% LT-4a 1197.43 1217.69 1628.06 35.96% 33.70% LT-4b&c 7.32 5.70 9.56 30.60% 67.72% LT-5 135.47 135.88 136.78 0.97% 0.66% LT-6(W/s) 111.93 118.39 120.53 7.68% 1.81% LT-6(St. Lt.) 63.97 63.10 69.38 8.46% 9.95% LT-7 19.63 19.12 19.40 -1.17% 1.46% LT-Total 3185.64 3313.37 3673.04 15.30% 10.86% HT-1 85.01 87.38 86.42 1.66% -1.10% HT-2a 586.41 805.52 548.29 -6.50% -31.93% HT-2b 180.07 168.53 186.06 3.33% 10.40% HT-2c 155.05 180.37 154.85 -0.13% -14.15% HT-3a&b 8.61 23.23 16.03 86.18% -30.99% HT-4 16.90 15.56 18.82 11.36% 20.95% HT-5 8.99 7.20 5.50 -38.82% -23.61% HT-Total 1041.04 1287.79 1015.97 -2.41% -21.11% MSEZ Supply 13.86 83.38 18.31 32.11% -77.25% KPCL Consumption 9.59 10.68 5.89 -38.58% - Wheeling Energy 59.04 - 81.21 37.55% - Grand Total 4309.17 4695.22 4794.42 11.26% 2.18%

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.4-APR FY17

As can be observed from the above table, MESCOM has reached the targeted approved sales in respect of LT category whereas in respect of HT category it is falling short of about 21% thereby the overall achievement is about 102%. However, comparing the sales of FY-16, there is overall increase of about 11% wherein the contribution of increase under LT category is about 15% and HT category is (-) 2.41%. The major variations in the energy sales across the categories, compared to the energy sales approved in the Tariff Order 2016, are analyzed below;

LT-2a: In this category, though the sales are below the targeted quantity approved in Tariff Order 2016, there is an increase of 2.18% with reference to the actual sales in FY-16.

HT-2a: In this category, there is a shortfall of consumption to an extent of 257.23 MU in FY-17 compared to the approved energy sales of 805.52 MU. In the Tariff Order 2017, Hon‟ble Commission while reviewing the Annual Performance for FY-16 had taken note of the reduced energy sales under HT-2a category and had also based the energy sales estimates for FY-18 considering the analysis of open access impact. In the year FY-17 also the trend of reduction in energy sales continued under the category. As such, the data in respect of sales to HT-2a category along with the consumption from open access / wheeling for the period from 2014-15 to 2016-17 are furnished below;

Year Energy Procured Open Access + Total from MESCOM Wheeled Energy 2014-15 710.79 62.92 773.71 2015-16 600.27 120.12 720.39 2016-17 566.60 241.47 808.07

HT-2c: In this category the energy sales are below the target approved in Tariff Order 2016, however, when compared to FY-16 there is marginal.

HT-3a & b: In this category, though the sales are below the target approved in Tariff Order 2016, there is an increase of 86.18% with reference to the actual sales of FY-16.

HT-5: As this category is related to temporary nature of installations, the usage pattern is inconsistent.

MSEZ Supply: In the Tariff Order 2016 Hon‟ble Commission has approved 83.38 MU energy sales to MSEZ for FY-17 against which the consumption of MSEZ is only 18.31 MU. Variation between the actuals and projection is about 78%. This has also resulted in additional deficit to MESCOM account. Hence, it is to be submitted before the Hon‟ble Commission to direct the MSEZ for a reasonable estimation of their consumption in their filing for ARR / Tariff petition for FY-19.

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.4-APR FY17

b. Distribution Loss: In the Tariff Order 2016, Hon‟ble Commission has approved an average distribution loss of 11.15% for FY-17 with11.35% being the upper limit and 10.95% being the lower limit against which the actual distribution loss of MESCOM in the year FY-17 is 11.40%.

1 Energy at Interface Points in MU 5411.61 2 Total Sales in MU 4794.42 3 Distribution Loss (%) 11.40% Approved Loss Levels for FY-17 Upper Limit : 11.35% Average : 11.15% Lower Limit : 10.95%

Further regarding transmission loss, it is to be submitted before the Hon‟ble Commission that considering the energy at generation point, after energy balancing exercise, and also having considered the energy at interface point the resultant transmission loss has been worked out to 4.54%. However, KERC approved transmission loss for FY-17 for KPTCL was 3.47%.

4.2.2 Financial Performance: The financial performance of MESCOM as per the Audited Annual Accounts for FY-17 v/s the Annual Revenue Requirement approved by the Hon‟ble Commission in the Tariff Order-2016 is tabulated below;

ARR for FY-17 As per FY-17 As proposed approved in Audited A/cs for FY-17 APR Particulars Tariff Order 2016 (Rs. In Cr.) (Rs. In Cr.) (Rs. In Cr.) A. INCOME: Revenue from sale of power 2189.21 2024.06 2024.06 Revenue subsidies 584.74 785.85 785.85 A-Total Income: 2773.95 2809.91 2809.91 B. EXPENDITURE: (1) Purchase of Power 1949.45 2291.69 2291.69 (2) KPTCL Transmission charges 246.90 248.38 248.38 (3) SLDC Charges 1.64 1.64 1.64 Sub-Total (1+2+3): 2197.99 2541.71 2541.71 O&M Costs: (a) Repairs & Maintenance 35.88 35.88 (b) Employee Costs 391.78 266.98 266.98 (c) Administrative & General Expenses 68.27 68.27 Sub-Total (a+b+c): 391.78 371.13 371.13 Depreciation 77.38 78.45 78.45

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.4-APR FY17

ARR for FY-17 As per FY-17 As proposed approved in Audited A/cs for FY-17 APR Particulars Tariff Order 2016 (Rs. In Cr.) (Rs. In Cr.) (Rs. In Cr.) Interest & Finance Charges: (i) Interest on Loan Capital 69.26 57.38 57.38 (ii) Interest on Working Capital 55.64 33.38 45.01 (iii) Interest on Consumer Deposits 38.22 35.68 35.68 (iv) Interest on belated power 2.87 - - purchase payments Sub-Total (i+ii+iii+iv): 163.12 129.31 138.07 Less: Interest & Finance charges capitalized (2.39) (2.39) (2.39) Other Debits (including bad debts) - 20.20 20.20 Extraordinary items - (3.07) - Net prior period (credits) / charges - 190.13 190.13 Provision for taxes - 3.07 3.07 Funds towards consumer relations 0.50 0.31 0.31 Sub-Total: (1.89) 208.25 211.32 B-Total Expenditure: 2828.38 3328.85 3340.68 Return on Equity 71.61 - 80.76 Regulatory Asset 92.25 - - Surplus of FY-14 (144.52) - - Less: Other Income (73.77) (531.88) (73.71) NET Annual Revenue Requirement 2773.95 2796.97 3347.73 REVENUE Surplus / (Deficit) (A-B) - 12.94 (537.82)

The major variation in the expenditure, with reference to the approved costs, is observed in power purchase cost, other debits and net prior period charges. Variations in the rest of the expenditure heads are marginal.

Power Purchase Cost: The approved power purchase cost for FY-17 was Rs.2197.99 Cr whereas the actual expenditure is Rs.2541.71 Cr. The approved cost per unit was Rs.4.03 against which actual is Rs.4.48/unit.

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.4-APR FY17

FY-17 FY-16 (Actuals) (Approved in TO-2015) Source Avg. Avg. MU Rs. (Cr.) Cost MU Rs. (Cr.) Cost (Rs./unit) (Rs./unit) 1 2 3 4 5 6 7 KPCL Hydel 411.26 41.82 1.02 683.31 71.86 1.05 KPCL Thermal 1548.29 670.84 4.33 1590.04 649.94 4.09 KPCL sub-total: 1959.55 712.66 3.64 2273.35 721.80 3.18 CGS 1793.86 657.77 - - - - CGS-NTPC/VVNL Bundle 39.60 13.54 - - - - Power (Thermal) CGS-NTPC/VVNL Bundle 9.62 10.19 - - - - Power (Solar) CGS sub-total: 1843.08 681.50 3.70 1725.97 559.75 3.24 NCE-Non Solar 513.08 180.59 3.52 699.80 239.97 3.43 NCE-Solar 74.91 55.97 7.47 65.20 53.73 8.24 NCE sub-total: 587.99 236.56 4.02 765.00 293.70 3.84 Short Term (NCE) 13.93 7.08 - - - - Short Term (other than NCE) 297.83 126.06 - - - - Short Term – Section 11 (NCE) 14.65 7.44 - - - - Short Term - Section 11 (other 43.23 21.96 - - - - than NCE Short Term sub-total: 369.64 162.54 4.40 88.90 44.81 5.04 Medium Term (NCE) 16.31 5.65 3.46 Major IPPs 594.03 266.59 4.49 598.39 248.06 4.15 Other States 9.55 4.73 4.95 8.95 5.22 5.83 KPTCL Transmission Charges - 248.38 - - 246.90 - PGCIL Transmission Charges - 111.71 - - 76.11 - SLDC Charges - 1.64 - - 1.64 - SRPC/POSOCO/TANGEDCO - 4.31 - - - - Energy Balancing 233.14 89.22 3.83 - - - Unscheduled Energy (NCE) 7.62 2.72 3.57 - - - Unscheduled Energy (Other 2.54 0.91 3.58 - - - than NCE) UI 45.39 12.59 2.77 - - - TOTAL: 5668.84 2541.71 4.48 5460.56 2197.99 4.03

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.4-APR FY17

Difference of Actuals over the % increase / decrease over the approved figures. approved figures. Source Avg. Avg. Avg. Rs. (Cr.) Cost Rs. (Cr.) Cost Rs. (Cr.) Cost (Rs./unit) (Rs./unit) (Rs./unit) 1 8 9 10 11 12 13 KPCL Hydel -272.05 -30.04 -0.03 -39.81% -41.80% -2.86% KPCL Thermal -41.75 20.90 0.24 -2.63% 3.22% 5.87% KPCL sub-total: -313.80 -9.14 0.46 -13.80% -1.27% 14.47% CGS ------CGS-NTPC/VVNL Bundle ------Power (Thermal) CGS-NTPC/VVNL Bundle ------Power (Solar) CGS sub-total: 117.11 121.75 0.46 6.79% 21.75% 14.20% NCE-Non Solar -186.72 -59.38 0.09 -26.68% -24.74% 2.62% NCE-Solar 9.71 2.24 -0.77 14.89% 4.17% -9.34% NCE sub-total: -177.01 -57.14 0.18 -23.14% -19.46% 4.69% Short Term (NCE) ------Short Term (other than NCE) ------Short Term – Section 11 (NCE) ------Short Term - Section 11 (other ------than NCE Short Term sub-total: 280.74 117.73 -0.64 315.79% 262.73% -12.70% Medium Term (NCE) 16.31 5.65 - - - - Major IPPs -4.36 18.53 0.34 -0.73% 7.47% 8.19% Other States 0.60 -0.49 -0.88 6.70% -9.39% -15.09% KPTCL Transmission Charges - 1.48 - - 0.60% - PGCIL Transmission Charges - 35.60 - - 46.77% - SLDC Charges - 0.00 - - 0.00% - SRPC/POSOCO/TANGEDCO - 4.31 - - - - Energy Balancing 233.14 89.22 - - - - Unscheduled Energy (NCE) 7.62 2.72 - - - - Unscheduled Energy (Other 2.54 0.91 - - - - than NCE) UI 45.39 12.59 - - - - TOTAL: 202.28 343.72 0.45 3.81% 15.64% 11.17%

As can be seen from the above table, the reduction in KPCL and NCE generation has resulted in purchase of short term power which contributes to the higher cost of power.

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.4-APR FY17

Other Debits: “Other Debits” claimed for the year FY-17 is Rs.20.20 Cr. The breakup of this expenditure is as below; Bad & Doubtful dues provided : Rs.1.45 Cr. Others : Rs.1.01 Cr. Compensation for injuries & death : Rs. 0.91 Cr. Loss on sale of scrap / stores : Rs.0.51 Cr. Sundry Debit balance written off : Rs.16.32 Cr.

In the above breakup, item “Sundry Debit balance written off” includes Rs.16.25 Cr related to waiving of the interest on Grama Panchayat Electricity dues for the year 2015-16 as per GOK order No. EN 3 PSR 2016 / P3 / Dt.31-03-2017 (GOK order is relating to adjustment of Grama Panchayat dues as on 31-03-2015 through adjustment of borrowings under securitization scheme, copy enclosed as Annexure-1). Except this item, all other expenses are aroused in the usual course of business.

Net Prior Period Charges: “Net Prior Period Charges” claimed for the year FY-17 is Rs.190.13 Cr. As can be observed in the Format- D13, the major expenditure component is relating to “Power Purchase” i.e., Rs.267.03 Cr. MESCOM had claimed interest on the receivable amounts from other ESCOMs relating to inter-Escom energy balancing. Since the ESCOMs are not accepting the interest claims of MESCOM it becomes inevitable for MESCOM to withdraw the claims from the books of accounts treating it as „Bad Debts‟. The Hon‟ble Commission in the Tariff Orders 2015 & 2016, while reviewing the Annual Performance for the years FY-14 & F-15, had accepted this interest claims as income for arriving at the revenue deficit. As such, it is kindly submitted before the Hon‟ble Commission to consider & allow the withdrawal of this interest claims as expenses.

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.4-APR FY17

Return on Equity: In the Tariff Order 2016, Hon‟ble Commission has allowed the Return on Equity of Rs.71.61 Cr. However, on the lines of Tariff Order 2016, the allowable Return on Equity works out to Rs.80.76 Cr., the computation details are as below.

(Return on Equity: Rs. in Crores) Year FY-17 Opening balance of paid up share capital 266.36 Share Deposit 14.00 Reserves & Surplus 155.45 Less: Recapitalized Security Deposit (-)26.00 Total: 409.81 Rate of ROE (grossed up with MAT) [*] 19.706% RoE for FY-17 80.76 [*] Considered 15.50% of return on equity duly grossed up with the applicable MAT of 21.342% which works out to 19.706%, as approved in Tariff Order 2016.

Status of Debt Equity Ratio: Particulars FY-17 GFA Closing Balance 1765.90 Debt 547.57 Equity 516.27 Normative Debt @ 70% of GFA 1236.13 Normative Equity @ 30% of GFA 529.77 % of actual DEBT on GFA 31.01 % % of actual EQUITY on GFA 29.24 %

Renewable Purchase Obligation (RPO) compliance by MESCOM: It is to submit before the Hon‟ble Commission that in the year 2016-17, MESCOM has achieved 11.00% of Non-Solar and 0.75% of Solar RPO thereby complied the RPO obligation for FY-17 as indicated below;

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.4-APR FY17

a. Non-Solar RPO

Sl. Quantum Cost Particulars No. (MU) (Rs. in Cr.) Total Power Purchase quantum from all sources 1 5670.35 2541.71 (includes 1.51 MU from SRTPV) Non–solar Renewable energy purchased under 2 PPA route at Generic tariff including Non-solar 513.08 180.59 RE purchased from KPCL Non –solar Short-Term purchase from RE sources, 3 37.86 15.45 excluding sec-11 purchase Non –solar Short-Term purchase from RE sources 4 14.65 7.44 under sec-11 5 Non-solar RE purchased at APPC - - Non-solar RE pertaining to green energy sold to 6 13.59 0.68 consumers under green tariff 7 Non-solar RE purchased from other ESCOMs - - 8 Non-solar RE sold to other ESCOMs - - Non-solar RE purchased from any other source 9 like banked energy purchased at 85% of - - Generic tariff Total Non-Solar RE Energy Purchased 10 565.59 203.48 [No 2+ No.3+No.4+No.5 +No.7+No.9] 10.1 Adjustment from excess solar (above 0.75%) 41.66 32.61 Adjustment of Non-Solar NCE from HESCOM as 10.2 30.08 - per GOK Order dated 26-09-2017 Non-Solar RE accounted for the purpose of RPO 11 623.74 235.41 [ No.10+10.1+10.2- No.5-No.6-No.8] Non-solar RPO complied in % 12 11.00% - [No11/No1]*100

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.4-APR FY17

a. Solar RPO

Sl. Quantum Cost Particulars No. (MU) (Rs. in Cr.) Total Power Purchase quantum from all sources 1 5670.35 2541.71 (includes 1.51 MU from SRTPV) Solar Renewable energy purchased under PPA 2 86.04 68.11 route (includes 1.51 MU from SRTPV) Solar Short-Term purchase from RE sources, 3 - - excluding sec-11 purchase Solar Short-Term purchase from RE sources 4 - - under sec-11 5 Solar RE purchased at APPC - - Solar RE pertaining to green energy sold to 6 1.85 0.09 consumers under green tariff 7 Solar RE purchased from other ESCOMs - - 8 Solar RE sold to other ESCOMs - - Solar RE purchased from any other source like 9 banked energy purchased at 85% of Generic - - tariff Total Solar RE Energy Purchased 10 86 203.48 [No 2+ No.3+No.4+No.5 +No.7+No.9] 10.1 Adjustment from excess solar (above 0.75%) (-)41.66 (-)32.61 Adjustment of Non-Solar NCE from HESCOM as 10.2 - - per GOK Order dated 26-09-2017 Solar RE accounted for the purpose of RPO 11 42.53 35.41 [ No.10+10.1+10.2- No.5-No.6-No.8] 12 Solar RPO complied in % [No11/No1]*100 0.75% -

Interest on Working Capital: In FY-17, MESCOM has incurred interest of Rs.33.38 Cr on working capital loan. As per the norms prescribed in the MYT regulations, MESCOM has claimed the interest on working capital as below. Rs. In Cr. 1. 1/12th of the amount of the O&M expenses. 30.93 2. Opening GFA 1567.18 3. Store, Materials & supplies 1% of OB of GFA 15.67 4. 1/6th of the Revenue 468.32 5. Total Working Capital 514.92 6. Rate of interest (%p.a.) 11.00% 7. Normative Interest on Working Capital 56.64 8. Actual Interest on WC as per audited accounts 33.38(*) 9. Working capital claimed to be allowed 45.01 (*)Statement showing status of borrowing as on 31-03-2017 is enclosed as Annexure-2.

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.4-APR FY17

4.3 Accordingly, the net Revenue Deficit pertaining to the financial year FY-17 to be included in the ARR for FY-19 will be Rs.537.82 Cr.

4.4 Copy of the audited Annual Accounts for FY-17 is enclosed as Annexure-3.

4.5 Capital Expenditure incurred during FY-17 is indicated below; Rs. in Cr. Capex Incurred in FY-17 Issue of Sl. Cost released Particulars during Net Capex No Asset for the year works 1. System Augmentation & Strengthening a. DTC Metering 19.42 - 19.42 Replacement of Electro-Mechanical b. 2.12 0.01 2.11 meters by Static Meters c. Auto-recloser & sectionalizer 0.27 - 0.27 Ling lines, Re-conductoring of HT, LT d. 29.09 - 29.09 & 33 kV Lines. Installations of additional e. 24.31 0.08 24.23 transformers f. Improvement – Others 9.17 0.07 9.10 Tackling of high loss high g. 0.25 0.02 0.23 consumption feeders & HVDS Sub-Total: 84.63 0.18 84.45 2. R – APDRP Works 16.74 0.01 16.73 Replacement of faulty Distribution 33.33 26.24 7.09 Transformers with similar capacities 3. Replacement of faulty Distribution 4.15 0.84 3.31 Transformers by higher capacities 4. Service connection including promoter vanished layout works a. Service Connection 16.65 0.09 16.56 Energization of Rural Water Supply b. 14.33 0.05 14.28 Works under RD&PR c. Promoter vanished layout works 0.42 - 0.42 Sub-Total: 31.40 0.14 31.26 5. Rural Electrification (General) a. RGGVY 0.02 - 0.02 b. DDUGJY - - - c. Electrification of Hamlets/Janatha Colonies 0.98 - 0.98 d. Energisation of IP sets 8.02 0.11 7.91 e. Regularization of un-authorized IP sets 1.13 0.03 1.10 Providing infrastructure to un-authorized f. 63.10 - 63.10 IP sets on total turnkey basis g. Kutir Jyothi 0.01 - 0.01 f. Sheegra samparka yojane 4.38 0.14 4.24 g. Naksal package - - - Sub- Total 77.64 0.28 77.36

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.4-APR FY17

Rs. in Cr. Capex Incurred in FY-17 Issue of Sl. Cost released Particulars during Net Capex No Asset for the year works 6. Tribal Sub-Plan a. Electrification of Tribal Colonies 1.50 - 1.50 b. Energisation of IP sets 0.30 - 0.30 c. Kutir Jyothi 0.01 0.01 - Sub- Total 1.81 0.01 1.80 7. Special Component Plan a Electrification of S.C Colonies 0.37 - 0.37 b Energisation of IP sets 0.78 - 0.78 c Kutir Jyothi 0.01 - 0.01 Sub- Total 1.16 - 1.16 8. Tools & Plants & Computers 3.48 - 3.48 9. Civil Engineering Works 25.20 - 25.20 10. New sub stations & lines (33 kV) 18.15 0.21 17.94 11. Electrification of IP sets under Ganga Kalyana a. IP Sets to SC 7.97 0.16 7.81 b. IP Sets to ST 2.26 0.02 2.24 c. IP Sets to BCM 6.41 0.05 6.36 d. IP Sets to Minorities 2.21 0.02 2.19 Sub- Total 18.85 0.25 18.60 Grand Total 316.54 28.16 288.38

:-:-:-:-:

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

CHAPTER-5

ENERGY SALES PROJECTIONS FOR FY-19

In the MYT filing for the control period from Fy-17 to Fy-19, MESCOM has projected the category–wise installations and sales based on mixed CAGR method. As the factors affecting the actual consumption are numerous and often beyond the control of the licensee, it needs to reconcile the projections considering the actuals in immediately preceding year. Accordingly, the projections in respect of installations and energy sales are revised for Fy-19.

The inputs considered for projection of sales has been detailed in the foregoing paragraphs.

5.1 ENERGY SALES PROJECTIONS: The criteria applied for projection of number of installations and energy sales for each of the tariff categories are detailed in the foregoing paras.

5.1.1 LT-1: Bhagyajyothi & Kutirajyothi

In the Tariff Order 2016, Hon’ble Commission has approved the number of

installations and energy sales for FY-19 under LT-1 category as 1,70,178 and 16.01

MU, respectively. These numbers are excluding of those installations which are

consuming more than 18 units per month. The Hon’ble Commission has included

the installations consuming more than 18 units / month under LT-2a category.

However, GOK in their order No.EN 12 PSR 2017 dated 29-05-2017 has increased

the consumption limit in respect of BJ/KJ installations from 18 units per month to 40

units per month with effect from 01-04-2017.

The trend in number of installations as at the end of the year FY-17 is indicating a

negative growth and hence, MESCOM has proceeded to retain the number of

installations existing as at the end of FY-17 for FY-18 and FY-19.

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

But, in respect of energy sales, the ‘consumption upto 18 unit slab’ is indicating an increase of 2.34% whereas consumption above 18 units is indicating a negative growth with reference to 3 year CAGR from FY-15 to FY-17. As such, MESCOM has considered a growth of 2.34% for ‘consumption upto 18 unit slab’ only and for the remaining installations consumption recorded in the year FY-17 is retained for FY-

18 and FY-19 also.

With the above, the sales estimation for LT-1 category has been made and detailed below.

No. of installations (LT-1: Consumption upto 40 units): Number of Year Particulars Installations Installations with consumption upto 18 units 141293 FY-15 (Actual) Installations with consumption above 18 units 54050 TOTAL: 195343 Installations with consumption upto 18 units 139044 FY-16 (Actual) Installations with consumption above 18 units 56589 TOTAL: 195633 Installations with consumption upto 18 units 143049 FY-17 (Actual) Installations with consumption above 18 units 50323 TOTAL: 193372 FY-18 Installations with consumption upto 40 units 193372 (Projection) FY-19 Installations with consumption upto 40 units 193372 (Projection)

Energy Sales (LT-1: Consumption upto 40 units): Year Particulars MU Installations with consumption upto 18 units 13.30 FY-15 (Actual) Installations with consumption above 18 units 29.00 TOTAL: 42.30 Installations with consumption upto 18 units 13.78 FY-16 (Actual) Installations with consumption above 18 units 27.86 TOTAL: 41.64 Installations with consumption upto 18 units 13.93 FY-17 (Actual) Installations with consumption above 18 units 27.03 TOTAL: 40.96 3 year CAGR Installations with consumption upto 18 units 2.34% 3 year CAGR Installations with consumption above 18 units (-)3.46% FY-18 Installations with consumption upto 40 units (Projection) 41.29 FY-19 Installations with consumption upto 40 units (Projection) 41.62

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.2 LT-2a: Lighting/combined lighting, heating & motive power of residential houses. For projection of number of installations for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17. LT-2a: Number of installations: Year LT-2a(i) LT-2a(ii) TOTAL Urban Rural FY-13 (Actual) 489048 783844 1272892 FY-14 (Actual) 511774 807836 1319610 FY-15 (Actual) 580828 780907 1361735 FY-16 (Actual) 599891 806084 1405975 FY-17 (Approved in TO-2016) 1516897 (*) FY-17 (Actual) 571650 880793 1452443 5 year CAGR 3.98% 2.96% FY-18 (Projection) 594402 906864 1501266 FY-19 (Projection) 618059 933707 1551766 Approved in Tariff Order 2017 for FY-18 1509300 Approved in Tariff Order 2016 for FY-19 1633970 (*) (*) includes BJ/KJ installations consuming more than 18 units / month

For projection of energy sales for FY-19 MESCOM has considered 3 year CAGR from FY-15 to FY-17. LT-2a: Energy Sales (MU): Year LT-2a(i) LT-2a(ii) TOTAL Urban Rural FY-13 (Actual) 558.91 500.45 1059.36 FY-14 (Actual) 600.94 528.04 1128.98 FY-15 (Actual) 637.82 555.08 1192.90 FY-16 (Actual) 687.25 577.45 1264.70 FY-17 (Approved in TO-2016) 1384.25 (*) FY-17 (Actual) 684.03 608.21 1292.24 3 year CAGR 3.56% 4.68% FY-18 (Projection) 708.38 636.67 1345.05 FY-19 (Projection) 733.60 666.47 1400.07 Approved in Tariff Order 2017 for FY-18 1420.25 Approved in Tariff Order 2016 for FY-19 1568.35 (*) (*) includes BJ/KJ installations consuming more than 18 units / month

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.3 LT-2b: Private professional and other private educational institutions. For projection of number of installations for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17.

LT-2b: Number of installations: Year LT-2b(i) LT-2b(ii) TOTAL Urban Rural FY-13 (Actual) 1456 1459 2915 FY-14 (Actual) 1503 1507 3010 FY-15 (Actual) 1539 1583 3122 FY-16 (Actual) 1569 1641 3210 FY-17 (Approved in TO-2016) 3359 FY-17 (Actual) 1636 1716 3352 5 year CAGR 2.96% 4.14% FY-18 (Projection) 1684 1787 3471 FY-19 (Projection) 1734 1861 3595 Approved in Tariff Order 2017 for FY-18 3435 Approved in Tariff Order 2016 for FY-19 3614

For projection of energy sales for FY-19 MESCOM has considered 3 year CAGR from FY-15 to FY-17. LT-2b: Energy Sales (MU): Year LT-2b(i) LT-2b(ii) TOTAL Urban Rural FY-13 (Actual) 6.10 3.37 9.47 FY-14 (Actual) 7.08 3.64 10.72 FY-15 (Actual) 7.41 4.06 11.47 FY-16 (Actual) 8.80 4.88 13.68 FY-17 (Approved in TO-2016) 12.94 FY-17 (Actual) 8.78 5.04 13.82 3 year CAGR 8.85% 11.42% FY-18 (Projection) 9.56 5.62 15.18 FY-19 (Projection) 10.41 6.26 16.67 Approved in Tariff Order 2017 for FY-18 17.48 Approved in Tariff Order 2016 for FY-19 15.42

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.4 LT-3: Commercial Lighting, Heating & Motive Power. For projection of number of installations for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17. LT-3: Number of installations: Year LT-3(i) LT-3(ii) TOTAL Urban Rural FY-13 (Actual) 98526 68613 167139 FY-14 (Actual) 102713 71682 174395 FY-15 (Actual) 106545 75739 182284 FY-16 (Actual) 112027 78077 190104 FY-17 (Approved in TO-2016) 198949 FY-17 (Actual) 115738 81932 197670 5 year CAGR 4.11% 4.54% FY-18 (Projection) 120495 85652 206147 FY-19 (Projection) 125447 89541 214988 Approved in Tariff Order 2017 for FY-18 206424 Approved in Tariff Order 2016 for FY-19 217182

The past growth trend in energy sales i.e. CAGR for 3 years, 5 years and 7 years are in the range of 5% to 6%. However, it is observed that in the year FY-17 the growth rate is only 2.92% under urban category and 5.58% under rural category, with reference to FY-16 sales. Hence, for projection of energy sales for FY-19 MESCOM has considered 2 year CAGR from FY-16 to FY-17.

LT-3: Energy Sales (MU): Year LT-3(i) LT-3(ii) TOTAL Urban Rural FY-13 (Actual) 183.85 87.59 271.44 FY-14 (Actual) 188.06 92.85 280.91 FY-15 (Actual) 205.99 98.70 304.69 FY-16 (Actual) 223.23 106.64 329.87 FY-17 (Approved in TO-2016) 341.71 FY-17 (Actual) 229.75 112.59 342.34 2 year CAGR 2.92% 5.58% FY-18 (Projection) 236.46 118.87 355.33 FY-19 (Projection) 243.36 125.50 368.86 Approved in Tariff Order 2017 for FY-18 375.65 Approved in Tariff Order 2016 for FY-19 380.06

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.5 LT-4a: IP Sets upto & inclusive of 10 HP. For projection of number of installations for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17. LT-4a: Number of installations: Year LT-4a FY-13 (Actual) 238638 FY-14 (Actual) 247139 FY-15 (Actual) 260399 FY-16 (Actual) 278171 FY-17 (Approved in TO-2016) 292860 FY-17 (Actual) 291129 5 year CAGR 5.10% FY-18 (Projection) 304087 FY-19 (Projection) 317045 Approved in Tariff Order 2017 for FY-18 313084 Approved in Tariff Order 2016 for FY-19 329368

For projection of energy sales MESCOM has considered the specific energy consumption of FY-17. In the year FY-17 actual IP set consumption is 1628.06 MU for 2,91,129 numbers of installations. This works out to a specific consumption of 5720 units per annum per IP. Hence, for projection of energy sales under this category MESCOM has considered specific consumption of 5720 units per installation. LT-4a: Energy Sales: Particulars Energy Sales in FY-13 (Actuals) 1060.21 MU Energy Sales in FY-14 (Actuals) 1122.69 MU Energy Sales in FY-15 (Actuals) 1086.18 MU Energy Sales in FY-16 (Actuals) 1197.43 MU Approved Energy Sales for FY-17 in TO-2016 1217.69 MU Energy Sales in FY-17 (Actuals) 1628.06 MU Midyear number of installations for FY-17 2,84,650 Specific Consumption for FY-17 5720 Units Midyear number of installations for FY-18 (Projection) 2,97,608 Midyear number of installations for FY-19 (Projection) 3,10,566 Energy Sales for FY-18 (Projection) 1702.32 MU Energy Sales for FY-19 (Projection) 1776.44 MU Approved in Tariff Order 2017 for FY-18 1352.32 MU Approved in Tariff Order 2016 for FY-19 1369.48 MU

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.6 LT-4b: IP Sets above 10 HP. For projection of number of installations for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17.

LT-4b: Number of installations: Year LT-4b FY-13 (Actual) 176 FY-14 (Actual) 183 FY-15 (Actual) 181 FY-16 (Actual) 179 FY-17 (Approved in TO-2016) 186 FY-17 (Actual) 245 5 year CAGR 8.62% FY-18 (Projection) 266 FY-19 (Projection) 289 Approved in Tariff Order 2017 for FY-18 182 Approved in Tariff Order 2016 for FY-19 197

3 year CAGR of energy sales under the category is 0.00% and with reference to FY-16, growth rate is negative. Hence, energy sales of FY-17 is retained for FY-19 also. LT-4b: Energy Sales (MU) : Year LT-4b FY-13 (Actual) 1.08 FY-14 (Actual) 1.12 FY-15 (Actual) 1.21 FY-16 (Actual) 0.92 FY-17 (Approved in TO-2016) 0.89 FY-17 (Actual) 1.21 3 year CAGR 0.00% FY-18 (Projection) 1.21 FY-19 (Projection) 1.21 Approved in Tariff Order 2017 for FY-18 0.93 Approved in Tariff Order 2016 for FY-19 0.83

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.7 LT-4c(i): Private Horticultural Nurseries, Coffee and Tea plantations of sanctioned load of 10 HP & below. For projection of number of installations for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17. LT-4c(i): Number of installations: Year LT-4c(i) FY-13 (Actual) 1994 FY-14 (Actual) 2016 FY-15 (Actual) 2276 FY-16 (Actual) 2576 FY-17 (Actual) 2906 5 year CAGR 9.87% FY-18 (Projection) 3193 FY-19 (Projection) 3508

For projection of energy sales for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17. LT-4c(i): Energy Sales (MU): Year LT-4c(i) FY-13 (Actual) 3.09 FY-14 (Actual) 2.75 FY-15 (Actual) 2.37 FY-16 (Actual) 3.09 FY-17 (Actual) 4.19 5 year CAGR 7.91% FY-18 (Projection) 4.52 FY-19 (Projection) 4.88

5.1.8 LT-4c(ii): Private Horticultural Nurseries, Coffee and Tea plantations of sanctioned load of above 10 HP. For projection of number of installations for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17. LT-4c(ii): Number of installations: Year LT-4c(ii) FY-13 (Actual) 657 FY-14 (Actual) 631 FY-15 (Actual) 687 FY-16 (Actual) 720 FY-17 (Actual) 767 5 year CAGR 3.95% FY-18 (Projection) 797 FY-19 (Projection) 828

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

For projection of energy sales for FY-19 MESCOM has considered 3 year CAGR from FY-15 to FY-17. LT-4c(ii): Energy Sales (MU): Year LT-4c(ii) FY-13 (Actual) 3.40 FY-14 (Actual) 3.79 FY-15 (Actual) 3.60 FY-16 (Actual) 3.31 FY-17 (Actual) 4.16 3 year CAGR 7.50% FY-18 (Projection) 4.47 FY-19 (Projection) 4.81

5.1.9 LT-5: Heating & Motive Power (including lighting) of Industrial Units. For projection of number of installations for FY-19 MESCOM has considered 2 year CAGR from FY-16 to FY-17. Number of installations (LT-5) With SL With SL Year With SL With SL >5 HP & =>40 HP & Total =<5 HP =>67 HP < 40 HP < 67 HP FY-13 (Actual) 10252 10847 1518 181 22798 FY-14 (Actual) 10547 11795 1623 234 24199 FY-15 (Actual) 11423 12637 1677 157 25894 FY-16 (Actual) 12496 13427 1786 150 27859 FY-17 (Approved in TO-2016) 29515 FY-17 (Actual) 12629 14220 1803 141 28793 2 Year CAGR: 1.06% 5.91% 0.95% (-)6.00% FY-18 (Projection) 12763 15060 1820 141 29784 FY-19 (Projection) 12898 15950 1837 141 30826 Approved in Tariff Order 2017 for FY-18 31712 Approved in Tariff Order 2016 for FY-19 33571

For projection of energy sales for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17. Energy Sales (MU) (LT-5) With SL With SL Year With SL With SL >5 HP & =>40 HP & Total =<5 HP =>67 HP < 40 HP < 67 HP FY-13 (Actual) 11.22 44.3 56.69 18.78 130.99 FY-14 (Actual) 10.96 46.56 55.2 16.1 128.82 FY-15 (Actual) 11.02 48.41 56.49 15.51 131.43 FY-16 (Actual) 12.15 48.66 61.34 13.32 135.47 FY-17 (Approved in TO-2016) 135.89 FY-17 (Actual) 13.92 48.91 61.00 12.95 136.78 5 Year CAGR: 5.54% 2.51% 1.85% (-)8.87% FY-18 (Projection) 14.69 50.14 62.13 12.95 139.91 FY-19 (Projection) 15.50 51.40 63.28 12.95 143.13 Approved in Tariff Order 2017 for FY-18 140.55 Approved in Tariff Order 2016 for FY-19 138.48

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.10 LT-6(a): Water Supply & Sewerage pumping installations. For projection of number of installations for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17. LT-6(a): Number of installations: Year LT-6(a) FY-13 (Actual) 10622 FY-14 (Actual) 11395 FY-15 (Actual) 12182 FY-16 (Actual) 12630 FY-17 (Approved in TO-2016) 13550 FY-17 (Actual) 13680 5 year CAGR 6.53% FY-18 (Projection) 14573 FY-19 (Projection) 15525 Approved in Tariff Order 2017 for FY-18 14175 Approved in Tariff Order 2016 for FY-19 15446 For projection of energy sales for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17. LT-6(a): Energy Sales (MU): Year LT-6(a) FY-13 (Actual) 97.46 FY-14 (Actual) 100.38 FY-15 (Actual) 107.63 FY-16 (Actual) 111.93 FY-17 (Approved in TO-2016) 118.39 FY-17 (Actual) 120.53 5 year CAGR 5.46% FY-18 (Projection) 127.11 FY-19 (Projection) 134.05 Approved in Tariff Order 2017 for FY-18 122.75 Approved in Tariff Order 2016 for FY-19 135.43

5.1.11 LT-6(b): Public Street Lights. For projection of number of installations for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17. LT-6(b): Number of installations: Year LT-6(b) FY-13 (Actual) 14808 FY-14 (Actual) 15632 FY-15 (Actual) 16135 FY-16 (Actual) 17263 FY-17 (Approved in TO-2016) 17728 FY-17 (Actual) 19676 5 year CAGR 7.36% FY-18 (Projection) 21124 FY-19 (Projection) 22679 Approved in Tariff Order 2017 for FY-18 19284 Approved in Tariff Order 2016 for FY-19 20271

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

For projection of energy sales for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17. LT-6(b): Energy Sales (MU): Year LT-6(b) FY-13 (Actual) 57.48 FY-14 (Actual) 57.25 FY-15 (Actual) 58.19 FY-16 (Actual) 63.97 FY-17 (Approved in TO-2016) 63.10 FY-17 (Actual) 69.38 5 year CAGR 4.82% FY-18 (Projection) 72.72 FY-19 (Projection) 76.23 Approved in Tariff Order 2017 for FY-18 69.70 Approved in Tariff Order 2016 for FY-19 66.66

5.1.12 LT-7: Temporary Power Supply of all categories including Hoarding & Advertisement boards. Compared to FY-16, the growth rate in respect of both number of installations and energy sales is negative in FY-17. Hence, the number of installations that exists as at the end of March-2017 and consumption in the year FY-17 is maintained for FY-19.

Year No. of Energy Sales Installations (MU) FY-13 (Actual) 10534 27.22 FY-14 (Actual) 11988 18.05 FY-15 (Actual) 12802 19.12 FY-16 (Actual) 16506 19.63 FY-17 (Approved in TO-2016) 12802 19.12 FY-17 (Actual) 14153 19.40 FY-18 (Projection) 14153 19.40 FY-19 (Projection) 14153 19.40 Approved in Tariff Order 2017 for FY-18 16506 19.63 Approved in Tariff Order 2016 for FY-19 12802 19.12

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.13 HT-1: Water Supply, Drainage / Sewerage water treatment plant and Sewerage pumping installations. For projection of number of installations for FY-19 MESCOM has considered 3 year CAGR from FY-15 to FY-17. HT-1: Number of installations: Year HT-1 FY-13 (Actual) 55 FY-14 (Actual) 62 FY-15 (Actual) 70 FY-16 (Actual) 78 FY-17 (Approved in TO-2016) 80 FY-17 (Actual) 88 3 year CAGR 12.12% FY-18 (Projection) 99 FY-19 (Projection) 111 Approved in Tariff Order 2017 for FY-18 91 Approved in Tariff Order 2016 for FY-19 91

For projection of energy sales for FY-19 MESCOM has considered 3 year CAGR from FY-15 to FY-17. HT-1: Energy Sales (MU): Year HT-1 FY-13 (Actual) 77.74 FY-14 (Actual) 78.20 FY-15 (Actual) 83.35 FY-16 (Actual) 85.01 FY-17 (Approved in TO-2016) 87.38 FY-17 (Actual) 86.42 3 year CAGR 1.82% FY-18 (Projection) 87.99 FY-19 (Projection) 89.59 Approved in Tariff Order 2017 for FY-18 88.26 Approved in Tariff Order 2016 for FY-19 91.94

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.14 HT-2a: Industries. For projection of number of installations for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17. HT-2a: Number of installations: Year HT-2a FY-13 (Actual) 588 FY-14 (Actual) 623 FY-15 (Actual) 661 FY-16 (Actual) 725 FY-17 (Approved in TO-2016) 771 FY-17 (Actual) 784 5 year CAGR 7.46% FY-18 (Projection) 842 FY-19 (Projection) 905 Approved in Tariff Order 2017 for FY-18 829 Approved in Tariff Order 2016 for FY-19 867

In the Tariff Order 2017, Hon’ble Commission while reviewing the Annual Performance for FY-16 had taken note of the reduced energy sales under HT-2a category and had also based the energy sales estimates for FY-18 considering the analysis of open access impact. In the year FY-17 also the trend of reduction in energy sales continued under the category. As such, the data in respect of sales to HT-2a category along with the consumption from open access / wheeling during the period from 2014-15 to 2016-17 are furnished below;

Year Energy Procured Open Access + Total from MESCOM Wheeled Energy 2014-15 710.79 62.92 773.71 2015-16 600.27 120.12 720.39 2016-17 566.60 241.47 808.07

In view of the above, MESCOM maintained the consumption in the year FY-17 for FY-19 also. HT-2a: Energy Sales (MU): Year HT-2a FY-13 (Actual) 590.68 FY-14 (Actual) 686.45 FY-15 (Actual) 704.86 FY-16 (Actual) 586.41 FY-17 (Approved in TO-2016) 805.52 FY-17 (Actual) 548.29 FY-18 (Projection) 548.29 FY-19 (Projection) 548.29 Approved in Tariff Order 2017 for FY-18 614.81 Approved in Tariff Order 2016 for FY-19 920.56

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.15 HT-2b: Commercial. For projection of number of installations for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17.

HT-2b: Number of installations: Year HT-2b FY-13 (Actual) 500 FY-14 (Actual) 521 FY-15 (Actual) 539 FY-16 (Actual) 577 FY-17 (Approved in TO-2016) 577 FY-17 (Actual) 624 5 year CAGR 5.69% FY-18 (Projection) 660 FY-19 (Projection) 698 Approved in Tariff Order 2017 for FY-18 638 Approved in Tariff Order 2016 for FY-19 585

For the category, CAGR for 3 years is indicating a growth rate of 9.97% whereas compared to FY-16 the growth rate is 3.33%. Hence, for projection of energy sales for FY-19 MESCOM has considered a growth rate of 3.33%.

HT-2b: Energy Sales (MU): Year HT-2b FY-13 (Actual) 190.86 FY-14 (Actual) 152.46 FY-15 (Actual) 153.86 FY-16 (Actual) 180.07 FY-17 (Approved in TO-2016) 168.53 FY-17 (Actual) 186.06 2 year CAGR 3.33% FY-18 (Projection) 192.26 FY-19 (Projection) 198.66 Approved in Tariff Order 2017 for FY-18 196.74 Approved in Tariff Order 2016 for FY-19 184.60

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.16 HT-2c: Hospitals, Educational Institutions and Hostels. In respect of this category consumption growth rate with reference to 3 year CAGR is 2.76% and when compared to FY-16 growth rate in FY-17 is negative. Hence, the number of installations existing as at the end of March-2017 and the energy consumption in FY-17 is maintained for FY-19 also. HT-2c: Number of installations: Year HT-2c FY-13 (Actual) 140 FY-14 (Actual) 202 FY-15 (Actual) 227 FY-16 (Actual) 250 FY-17 (Approved in TO-2016) 277 FY-17 (Actual) 264 FY-18 (Projection) 264 FY-19 (Projection) 264 Approved in Tariff Order 2017 for FY-18 309 Approved in Tariff Order 2016 for FY-19 327

HT-2c: Energy Sales (MU): Year HT-2c FY-13 (Actual) 76.00 FY-14 (Actual) 117.65 FY-15 (Actual) 146.65 FY-16 (Actual) 155.05 FY-17 (Approved in TO-2016) 180.37 FY-17 (Actual) 154.85 FY-18 (Projection) 154.85 FY-19 (Projection) 154.85 Approved in Tariff Order 2017 for FY-18 204.34 Approved in Tariff Order 2016 for FY-19 214.09

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.17 HT-3a: Lift Irrigation Schemes / Lift Irrigation Societies. Under this category, growth rate both in respect of number of installations and energy sales is inconsistent. Hence, the number of installations existing as at the end of March-2017 and the energy consumption in FY-17 is maintained for FY-19 also. HT-3a: Number of installations: Year HT-3a FY-13 (Actual) 13 FY-14 (Actual) 12 FY-15 (Actual) 21 FY-16 (Actual) 21 FY-17 (Actual) 23 FY-18 (Projection) 23 FY-19 (Projection) 23

HT-3a: Energy Sales (MU): Year HT-3a FY-13 (Actual) 19.24 FY-14 (Actual) 24.66 FY-15 (Actual) 22.97 FY-16 (Actual) 8.32 FY-17 (Actual) 15.71 FY-18 (Projection) 15.71 FY-19 (Projection) 15.71

5.1.18 HT-3b: Irrigation / Agricultural / Horticultural forms. Under this category, growth rate both in respect of number of installations and energy sales is inconsistent. Hence, the number of installations existing as at the end of March-2017 and the energy consumption in FY-17 is maintained for FY-19 also. HT-3b: Number of installations: Year HT-3b FY-13 (Actual) 2 FY-14 (Actual) 4 FY-15 (Actual) 3 FY-16 (Actual) 3 FY-17 (Actual) 3 FY-18 (Projection) 3 FY-19 (Projection) 3

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

HT-3b: Energy Sales (MU): Year HT-3b FY-13 (Actual) 0.15 FY-14 (Actual) 0.32 FY-15 (Actual) 0.25 FY-16 (Actual) 0.29 FY-17 (Actual) 0.32 FY-18 (Projection) 0.32 FY-19 (Projection) 0.32

5.1.19 HT-4: Residential Apartments & Colonies. For projection of number of installations for FY-19 MESCOM has considered 3 year CAGR from FY-15 to FY-19. HT-4: Number of installations: Year HT-4 FY-13 (Actual) 52 FY-14 (Actual) 46 FY-15 (Actual) 44 FY-16 (Actual) 46 FY-17 (Approved in TO-2016) 47 FY-17 (Actual) 52 3 year CAGR 8.71% FY-18 (Projection) 57 FY-19 (Projection) 62 Approved in Tariff Order 2017 for FY-18 46 Approved in Tariff Order 2016 for FY-19 51

For projection of energy sales for FY-19 MESCOM has considered 5 year CAGR from FY-13 to FY-17. HT-4: Energy Sales (MU): Year HT-4 FY-13 (Actual) 13.84 FY-14 (Actual) 14.27 FY-15 (Actual) 14.40 FY-16 (Actual) 16.90 FY-17 (Approved in TO-2016) 15.56 FY-17 (Actual) 18.82 5 year CAGR 7.99% FY-18 (Projection) 20.32 FY-19 (Projection) 21.94 Approved in Tariff Order 2017 for FY-18 18.78 Approved in Tariff Order 2016 for FY-19 16.82

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.20 HT-5: Temporary Supply. Under this category, growth rate both in respect of number of installations and energy sales is inconsistent. Hence, the number of installations existing as at the end of March-2017 and the energy consumption in FY-17 is maintained for FY-19 also. HT-5: Number of installations: Year HT-5 FY-13 (Actual) 7 FY-14 (Actual) 20 FY-15 (Actual) 20 FY-16 (Actual) 20 FY-17 (Actual) 16 FY-18 (Projection) 16 FY-19 (Projection) 16

HT-5: Energy Sales (MU): Year HT-5 FY-13 (Actual) 3.42 FY-14 (Actual) 21.86 FY-15 (Actual) 7.20 FY-16 (Actual) 8.99 FY-17 (Actual) 5.50 FY-18 (Projection) 5.50 FY-19 (Projection) 5.50

5.1.21 Supply to MSEZ: In the Tariff Order 2016, Hon’ble Commission has approved 80.49 MU of sales in respect of MSEZ installations for FY-17. However, the actual consumption is only 18.31 MU. In FY-16 also the consumption was only 13.86 MU. Hence, the energy consumption in FY-17 is maintained for FY-19 also.

MSEZ: Energy Sales (MU): Year MSEZ FY-15 (Actual) 8.64 FY-16 (Actual) 13.86 FY-17 (Actual) 18.31 FY-18 (Projection) 18.31 FY-19 (Projection) 18.31

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.22 KPCL and Wheeling Consumption: In the year FY-17, KPCL consumption is 5.89 MU and wheeling energy is 81.21 MU. The same quantum has been maintained for FY-19 also.

5.1.23 Abstract of projected number of installations for different years. (Number of installations) FY-17 FY-18 FY-19 Tariff Category Apprd. In Apprd. In Revised Apprd. In Revised Actuals T.O. 2016 T.O. 2017 Proj. T.O. 2016 Proj. 1 2 3 4 5 6 7 LT-1:>18/40 155065 143049 - - 170178 - LT-1:=<18 /40 Units - 50323 209118 193372 - 193372 LT-1 Sub Total: 155065 193372 209118 193372 170178 193372 LT-2a(i) Urban 571650 594402 618059 LT-2a(ii) Rural 1516897 880793 1509300 906864 1633970 933707 LT-2a Sub Total: 1452443 1501266 1551766 LT-2b(i) Urban 1636 1684 1734 LT-2b(ii) Rural 3359 1716 3435 1787 3614 1861 LT-2b Sub Total: 3352 3471 3595 LT-3(i) Urban 115738 120495 125447 LT-3(ii) Rural 198949 81932 206424 85652 217182 89541 LT-3 Sub Total: 197670 206147 214988 LT-4a 292860 291129 313084 304087 329368 317045 LT-4b 186 245 182 266 197 289 LT-4c(i) 2906 3193 3508 3462 3727 4207 LT-4c(ii) 767 797 828 LT-5b: =< 5 HP 12629 12763 12898 LT-5b: >5 HP & <40 HP 14220 15060 15950 LT-5b: =>40 HP & < 67 HP 29515 1803 31712 1820 33571 1837 LT-5b: =>67 HP 141 141 141 LT-5 Sub Total: 28793 29784 30826 LT-6a 13550 13680 14175 14573 15446 15525 LT-6b 17728 19676 19284 21124 20271 22679 LT-7 12802 14153 16506 14153 12802 14153 TOTAL- LT 2244373 2218186 2326947 2292233 2440806 2368574 HT-1 80 88 91 99 91 111 HT-2a 771 784 829 842 867 905 HT-2b 577 624 638 660 585 698 HT-2c 277 264 309 264 327 264 HT-3a 23 23 23 24 32 24 HT-3b 3 3 3 HT-4 47 52 46 57 51 62 HT-5 20 16 20 16 20 16 TOTAL- HT 1796 1854 1965 1964 1965 2082 TOTAL- LT + HT 2246169 2220040 2328912 2294197 2442771 2370656

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.1.24 Abstract of projected energy sales for different years. (Energy Sales in MU) FY-17 FY-18 FY-19 Tariff Category Apprd. In Apprd. In Revised Apprd. In Revised Actuals T.O. 2016 T.O. 2017 Proj. T.O. 2016 Proj. 1 2 3 4 5 6 7 LT-1:>18/40 14.26 13.93 - - 16.01 - LT-1:=<18 /40 Units - 27.03 44.92 41.29 - 41.62 LT-1 Sub Total: 14.26 40.96 44.92 41.29 16.01 41.62 LT-2a(i) Urban 684.03 708.38 733.60 1384.25 1420.25 1568.35 LT-2a(ii) Rural 608.21 636.67 666.47 LT-2a Sub Total: 1384.25 1292.24 1420.25 1345.05 1441.69 1400.07 LT-2b(i) Urban 8.78 9.56 10.41 12.94 17.48 15.42 LT-2b(ii) Rural 5.04 5.62 6.26 LT-2b Sub Total: 12.94 13.82 17.48 15.18 15.42 16.67 LT-3(i) Urban 229.72 236.46 243.36 341.71 375.65 380.06 LT-3(ii) Rural 112.59 118.87 125.50 LT-3 Sub Total: 341.71 342.31 375.65 355.33 380.06 368.86 LT-4a 1217.69 1628.06 1352.32 1702.32 1369.48 1776.44 LT-4b 0.89 1.21 0.93 1.21 0.83 1.21 LT-4c(i) 4.19 4.52 4.88 4.81 7.24 4.94 LT-4c(ii) 4.16 4.47 4.81 LT-5b: =< 5 HP 13.92 14.69 15.50 LT-5b: >5 HP & <40 HP 48.91 50.14 51.40 LT-5b: =>40 HP & < 67 HP 135.89 61.00 140.55 62.13 138.48 63.28 LT-5b: =>67 HP 12.95 12.95 12.95 LT-5 Sub Total: 136.78 139.91 143.13 LT-6a 118.39 120.53 122.75 127.11 135.43 134.05 LT-6b 63.10 69.38 69.70 72.72 66.66 76.23 LT-7 19.12 19.40 19.63 19.40 19.12 19.40 TOTAL- LT 3313.38 3673.04 3571.42 3828.51 3714.78 3987.37 HT-1 87.38 86.42 88.26 87.99 91.94 89.59 HT-2a 805.52 548.29 614.81 548.29 920.56 548.29 HT-2b 168.53 186.06 196.74 192.26 184.60 198.66 HT-2c 180.37 154.85 204.34 154.85 214.09 154.85 HT-3a 15.71 15.71 15.71 23.22 11.26 23.22 HT-3b 0.32 0.32 0.32 HT-4 15.56 18.82 18.78 20.32 16.82 21.94 HT-5 7.20 5.50 8.99 5.50 7.20 5.50 TOTAL- HT 1287.78 1015.97 1143.18 1025.24 1458.43 1034.86 MSEZ Supply 83.38 18.31 85.33 18.31 116.88 18.31 KPCL Consumption 10.68 5.89 9.59 5.89 10.68 5.89 Wheeling Energy - 81.21 - 81.21 - 81.21 TOTAL- LT + HT 4695.22 4794.42 4809.52 4959.16 5300.77 5127.64

MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.5-Sales Projection

5.2 ENERGY AT INTERFACE POINT AND GENERATION POINT: The energy requirement at interface point is arrived at based on approved distribution loss of 11.15% for FY-19.

The energy requirement at generation point is computed based on projected transmission loss approved by the Hon’ble Commission. The projected energy requirement at interface point and generation point is tabulated below.

Energy MSEZ Energy Energy Dist. at IF Supply Trans. at Gen. Year Sales Loss (%) point (MU) Loss (%) point (MU) (MU) (MU) Fy-17 (Apprd. In TO 2016) 4611.84 11.15% 5190.59 83.38 3.47% 5460.56 Fy-17 (Actuals) 4794.42 11.40% 5411.61 - 4.54% 5668.84 Fy-18 (Apprd. In TO 2017) 4724.19 11.05% 5311.06 85.33 3.37% 5583.87 Fy-18 (Revised Projection) 4959.16 11.25% 5587.79 - 3.37% 5782.67 Fy-19 (Apprd. In TO 2016) 5183.89 10.95% 5821.33 116.88 3.27% 6135.00 Fy-19 ((Revised Projection) 5127.64 11.15% 5771.12 - 3.27% 5966.22 :-:-: -:-:

MESCOM: ERC & Tariff Petition for FY-19: Ch.6-ARR

CHAPTER-6 AGGREGATE ANNUAL REVENUE REQUIREMENT for FY-19

6.1 POWER PURCHASE COST: In the Chapter “Energy Sales Projections” MESCOM has elaborated the projections made in respect of the energy sales for FY-19. Further, the energy requirement at generation point has also been arrived considering the projected distribution loss and transmission loss for the respective years.

In this Chapter, the energy requirement projected for the year FY-19 has been considered for estimations of power purchase cost to arrive at the aggregate annual revenue requirement for FY-19.

a. Cost of power at generation point: M/s PCKL has made available the source wise energy availability and related cost which has been considered in the filing.

For FY-19, PCKL has estimated that the cost of power purchase for MESCOM as Rs.2407.30 Cr. Power purchase cost incurred by MESCOM in different years are indicated in the below table; Rs. in Cr. Year Amount Fy-13 (Actuals) 1378.27 Fy-14 (Actuals) 1484.68 Fy-15 (Actuals) 1467.63 Fy-16 (Actuals) 2010.15 Fy-17 (As appd. In TO-2016) 2197.99 Fy-17 (Actuals) 2291.69 Fy-18 (As appd. In TO-2017) 2014.90 Fy-18 (Revised Projection) 2335.16 Fy-19 (As appd. In TO-2016) 2426.75 Fy-19 (Revised Projection) 2407.58

b. KPTCL Transmission Charges: Transmission charges for FY-19 approved by the Hon‟ble Commission in Tariff Order 2016 has been considered, which is Rs.251.83 Cr.

MESCOM: ERC & Tariff Petition for FY-19: Ch.6-ARR

a. SLDC Charges: SLDC charges for FY-19 approved by the Hon‟ble Commission in Tariff Order 2016 has been considered, which is Rs.2.02 Cr.

6.2 Operation and Maintenance (O&M) Costs: The Operation and Maintenance (O&M) costs includes employee-related costs, repairs & maintenance costs and administrative & general costs. All the above sub components of the O&M costs are projected for the year FY-19 as detailed below;

In the Tariff Order 2017, Hon‟ble Commission has projected the O&M Expenses for FY-18 with the following norms.

 Actual O&M Expenses in the year FY-16 as the base.  Consumer growth index of 3.93%.  Weighted average inflation index.  Efficiency factor of 1%.

MESCOM has considered the same norms for projecting the various costs under the head „O&M Expenses‟ but with the following additions.

 Weighted average inflation index of 8.11% which is arrived as follows:

Year WPI CPI Comp. Yt/Y1 Ln Rt Year Product Series =Rt (t-1) [(t-1)*(LnRt) 2005 103.40 115.80 113.32 2006 109.60 122.90 120.24 1.06 0.06 1 0.06 2007 114.90 130.80 127.62 1.13 0.12 2 0.24 2008 124.90 141.70 138.34 1.22 0.20 3 0.60 2009 127.90 157.10 151.26 1.33 0.29 4 1.16 2010 140.10 175.90 168.74 1.49 0.40 5 1.99 2011 153.40 191.50 183.88 1.62 0.48 6 2.90 2012 164.90 209.30 200.42 1.77 0.57 7 3.99 2013 175.40 232.20 220.84 1.95 0.67 8 5.34 2014 182.00 246.90 233.92 2.06 0.72 9 6.52 2015 177.00 261.40 244.52 2.16 0.77 10 7.69 2016 180.60 274.30 255.56 2.26 0.81 11 8.95 A=Sum of the product column 39.43 B=6 times of A 236.61 C=(n-1)*n*(2n-1) 3036.00 D=B/C 0.0779 Annual Escalation rate (exponential of D) 8.11%

MESCOM: ERC & Tariff Petition for FY-19: Ch.6-ARR

 MESCOM has completed the recruitment process for recruitment of about 441 employees under various cadres and has issued appointment orders in the month of Nov-17. Hence, MESCOM has to incur additional employee cost of Rs.10.35 Cr in FY-18 (for 4 months) and Rs.31.04 Cr in FY-19 as indicated below.

Sl. Designation No.s Additional Additional No. Expenditur Expenditure e for FY-18 for FY-19 (Rs. In Cr.) (Rs. In Cr.) 1. Asst. Engineer (Ele.) 78 2.30 6.91 2. Asst. Engineer (Civil) 7 0.21 0.62 3. Asst. Accounts Officer 41 1.21 3.63 4. Junior Engineer (Ele.) 112 2.35 7.06 5. Junior Engineer (Civil) 7 0.15 0.44 6. Assistant 122 2.09 6.26 7. Junior Assistant 74 1.10 3.30 TOTAL: 441 9.41 28.22 Pension Contribution @ 10% 0.94 2.82 TOTAL: 10.35 31.04

Further, it is to be submitted before the Hon‟ble Commission that it is learnt that a proposal is pending before KPTCL for revision of pay of the employees with effect from 01-04-2017 which may result in additional expenses to MESCOM. In this regard, the Hon‟ble Commission is requested to allow MESCOM to file an additional application, in case of any orders on that in the future date, to include the resultant expenses in the ARR proposal.

On the above elucidated norms / parameters, MESCOM has proceeded to project the O&M Expenses for FY-19 as below;

6.2.1 Employee Related Costs: Rs. in Cr. Particulars FY-16 FY-18 FY-19 Actual Expenses in FY-16 249.24 - - Consumer Growth Index - 3.93% 3.93% Weighted Inflation Index - 8.11% 8.11% Efficiency Factor - 1.00% 1.00% Net Growth Rate - 11.04% 11.04% Expenses projected - 307.31 341.24 Add: Additional Employee cost - 10.35 31.04 towards new recruitment TOTAL: 317.66 372.28

MESCOM: ERC & Tariff Petition for FY-19: Ch.6-ARR

6.2.2 Repairs and Maintenance Costs: Rs. in Cr. Particulars FY-16 FY-18 FY-19 Actual Expenses in FY-15 33.05 - - Consumer Growth Index - 3.93% 3.93% Weighted Inflation Index - 8.11% 8.11% Efficiency Factor - 1.00% 1.00% Net Growth Rate - 11.04% 11.04% Expenses projected - 40.75 45.25

6.2.3 Administrative and General Costs: Rs. in Cr. Particulars FY-16 FY-18 FY-19 Actual Expenses in FY-15 67.41 - - Consumer Growth Index - 3.93% 3.93% Weighted Inflation Index - 8.11% 8.11% Efficiency Factor - 1.00% 1.00% Net Growth Rate - 11.04% 11.04% Expenses projected - 83.12 92.30

6.2.4 ABSTRACT of Operation and Maintenance (O&M) Costs:

(O&M Costs: Rs. in Cr) Year Employee R&M A&G Total O&M Costs Costs Costs Costs FY-13 (Actual) 208.55 15.12 36.40 260.07 FY-14 (Actual) 222.84 20.11 46.33 289.28 FY-15 (Actual) 226.41 34.94 60.42 321.77 FY-16 (Actual) 249.24 33.04 67.41 349.69 FY-17 (Appd. TO 2016) - - - 391.78 FY-17 (Actual) 266.98 35.88 68.27 371.13 FY-18 (Appd. TO 2017) - - - 429.30 FY-18 (Revised Projection) 317.66 40.75 83.12 441.53 FY-19 (Appd. TO 2016) - - - 477.89 FY-19 (Revised Projection) 372.28 45.25 92.30 509.83

6.3 DEPRECIATION: MESCOM has considered the actual weighted rate of depreciation in the year FY-17 to arrive at the depreciation for the year FY-19. The computation of depreciation for FY-19 is narrated in the below given table;

MESCOM: ERC & Tariff Petition for FY-19: Ch.6-ARR

(Rs. in Cr.) Value of Gross Depreciation Particulars Block Assets in % Amount FY-17 Land and rights 8.01 - 0.00% Buildings 47.67 1.83 3.84% Hydraulic Works 2.63 0.14 5.32% Other Civil Works 0.70 0.03 4.29% Plant & Machinery 284.13 15.20 5.35% Lines, Cables, Networks / Service Lines /Metering equipment 1,311.93 60.71 4.63% Vehicles 4.76 0.18 3.78% Furniture Fixtures 5.13 0.28 5.46% Office Equipment 1.58 0.08 5.06% Total: 1,666.54 78.45 4.71%

(Rs. in Cr.) Particulars Estimated Avg. Depreciation value of Gross for FY-18 Block Assets in (Revised FY-18 Projection) Land and rights 8.41 - Buildings 77.88 2.99 Hydraulic Works 2.88 0.15 Other Civil Works 0.70 0.03 Plant & Machinery 329.02 18.25 Lines, Cables, Networks / Service Lines /Metering equipment 1,488.97 68.64 Vehicles 5.06 0.19 Furniture Fixtures 8.96 0.49 Office Equipment 3.42 0.17 Total: 1925.30 90.91

(Rs. in Cr.) Particulars Estimated Avg. Depreciation value of Gross for FY-19 Block Assets in (Revised FY-19 Projection) Land and rights 8.92 - Buildings 116.02 4.45 Hydraulic Works 3.20 0.17 Other Civil Works 0.70 0.03 Plant & Machinery 401.09 22.25 Lines, Cables, Networks / Service Lines /Metering equipment 1,701.39 78.72 Vehicles 5.45 0.20 Furniture Fixtures 13.79 0.75 Office Equipment 5.73 0.29 Total: 2,256.29 106.86

MESCOM: ERC & Tariff Petition for FY-19: Ch.6-ARR

Abstract: (Rs. in Cr.) Year Depreciation Amount in different years FY-13 (Actual) 50.84 FY-14 (Actual) 54.71 FY-15 (Actual) 63.68 FY-16 (Actual) 63.74 FY-17 (Appd. TO 2016) 77.38 FY-17 (Actual) 78.45 FY-18 (Appd. TO 2017) 79.60 FY-18 (Revised Projection) 90.91 FY-19 (Appd. TO 2016) 95.29 FY-19 (Revised Projection) 106.86

6.4 INTEREST AND FINANCE COSTS: Interest and Finance costs include interest on capital loan, interest on working capital, interest on consumer deposits and other finance costs.

6.4.1 Interest on Capital Loan: In the year FY-17, MESCOM‟s CAPEX plan viz-a-viz the achievement is as indicated below;

Particulars Capex Plan Capex % (Budget) Incurred during Rs. In Cr. the year Rs. In Cr DDUGJY 396.00 0.00 - IPDS 157.80 16.73 11% DDG 0.70 0.02 3% Others 545.50 271.63 50% Total: 1100.00 288.38 26%

Based on the above indicators, MESCOM has considered 20% achievement probability for DDUGJY/IPDS/DDG and 60% achievement probability for other works against the budget allocation for FY-18. Similarly for FY-19, 30% achievement probability for DDUGJY/IPDS/DDG and 60% achievement probability for other works against the budget allocation have been considered. With the above notion, the loan requirement from the commercial banks has been arrived @ 70% of the estimated capex achievement as detailed below;

MESCOM: ERC & Tariff Petition for FY-19: Ch.6-ARR

Estimated Loan requirement Capex Plan Achievement Capex for FY-18 (Budget) Particulars Probability achievement (70% of estimated for FY-18 % for FY-18 capex Rs. In Cr. Rs. In Cr. achievement) DDUGJY IPDS 97.79 20% 19.56 DDG Rs.262.61 Cr. Others 592.65 60% 355.59 Total: 690.44 54% 375.15

Estimated Loan requirement Capex Plan Achievement Capex for FY-19 (Budget) Particulars Probability achievement (70% of estimated for FY-19 % for FY-19 capex Rs. In Cr. Rs. In Cr. achievement) DDUGJY IPDS 233.00 30% 69.90 DDG Rs.288.54 Cr. Others 570.50 60% 342.30 Total: 803.50 54% 412.20

Capital Budget of MESCOM for FY-18 and FY-19 has been detailed in Annexure-4.

Considering the above estimations, interest on loan capital has been projected for FY-19, as indicated below. (Rs. in Cr.) Particulars FY-18 FY-19 Opening Balance of loans 547.57 669.89 Add: New Loans 262.61 288.54 Less: Repayments 140.29 170.29 Closing Balance of loans 669.89 788.14 Average Loan 608.73 729.02 Rate of interest 11.00% 11.00% Interest on Capital Loan 66.96 80.19

6.4.2 Interest on Consumer Deposits: The computation methodology adopted by the Hon‟ble Commission in the Tariff Order 2017 has been followed for projecting the interest on consumer security deposit. Increase in consumer deposit in FY-17 with reference to security deposit in FY-16 is taken as the estimated additions for FY-18 and FY-19.

MESCOM: ERC & Tariff Petition for FY-19: Ch.6-ARR

Accordingly, Interest on Consumer Deposits for the year FY-19 is projected as below;

Particulars FY-18 FY-19 Opening Balance of the security deposits 509.09 550.74 Add: Collected during the year 41.65 41.65 Closing Balance of the security deposits 550.74 592.39 Average 529.92 571.57 Rate of interest 7.75% 7.75% Interest on Capital Loan 41.07 44.30

6.4.3 Interest on Working Capital: Interest on working capital has been projected for the year FY-19 as per the norms prescribed in the MYT regulations.

(Interest on Working Capital: Rs. in Crores) Year FY-18 FY-19 (Revised Projection) (Revised Projection) 1/12th of O&M Expenses 36.70 42.23 Opening GFA 1,765.90 2081.60 1% on opening GFA 17.66 20.82 1/6th of Revenue 515.86 532.87 Total Working Capital 570.22 595.92 Rate of Interest (%) 11.00% 11.00% Interest on Working Capital 62.72 65.55

6.4.4 Cost of raising finance: Actual / projected cost of raising finance for different years is tabulated below; (Rs. in Crores) Year Amount FY-13 (Actual) 2.85 FY-14 (Actual) 3.33 FY-15 (Actual) 2.19 FY-16 (Actual) 1.21 FY-17 (Appd. TO 2016) 2.19 FY-17 (Actual) 3.95 FY-18 (Appd. TO 2017) 1.21 FY-18 (Revised Projection) 3.95 FY-19 (Appd. TO 2016) 2.19 FY-19 (Revised Projection) 3.95

MESCOM: ERC & Tariff Petition for FY-19: Ch.6-ARR

6.4.5 ABSTRACT of Interest and Finance Costs:

(Interest and Finance Costs: Rs. in Crores) Interest on Interest belated Working Interest on Cost of on payment of Year Capital consumer raising Total Capital power Interest Deposit finance Loan purchase bills FY-16 (Actual) 62.68 12.18 35.55 0.29 1.21 111.91 FY-17 (As apprd. in TO-2016) 67.07 55.64 38.22 - 2.19 163.12 FY-17 (Actual) 53.43 33.38 35.68 2.87 3.95 129.31 FY-18 (As apprd. in TO-2017) 68.71 58.61 35.94 - 1.21 164.47 FY-18 (Revised Projection) 66.96 62.72 41.07 - 3.95 174.70 FY-18 (As apprd. in TO-2017) 70.99 63.11 45.04 - 2.19 178.93 FY-19 (Revised Projection) 80.19 65.55 44.30 - 3.95 193.99

6.4.6 Interest & Other expenses capitalized: Actual / projected interest & other expenses capitalized in different years is tabulated below; (Rs. in Crores) Year Amount FY-13 (Actual) 2.07 FY-14 (Actual) 2.51 FY-15 (Actual) 2.39 FY-16 (Actual) 1.30 FY-17 (Appd. TO 2016) 2.39 FY-17 (Actual) 2.39 FY-18 (Appd. TO 2016) 1.30 FY-18 (Revised Projection) 2.39 FY-19 (Appd. TO 2016) 2.39 FY-19 (Revised Projection) 2.39

6.5 OTHER DEBITS (including bad debts): Actual / projected „Other Debits‟ charges for different years are tabulated below;

(Rs. in Crores) Year Amount FY-13 (Actual) 4.19 FY-14 (Actual) 13.65 FY-15 (Actual) 6.46 FY-16 (Actual) 5.03 FY-17 (Appd. TO 2016) - FY-17 (Actual) 20.20 FY-18 (Appd. TO 2017) - FY-18 (Revised Projection) 3.95 FY-18 (Appd. TO 2016) - FY-19 (Revised Projection) 3.95 54

MESCOM: ERC & Tariff Petition for FY-19: Ch.6-ARR

6.6 PRIOR PERIOD (CREDITS) / CHARGES: Actual / projected „Net prior period (credits) / charges‟ charges for different years is tabulated below; (Rs. in Crores) Year Amount FY-13 (Actual) (11.93) FY-14 (Actual) (1.89) FY-15 (Actual) (28.62) FY-16 (Actual) (8.66) FY-17 (Appd. TO 2016) - FY-17 (Actual) 190.03 FY-18 (Appd. TO 2017) - FY-18 (Revised Projection) 1.93 FY-19 (Appd. TO 2016) - FY-19 (Revised Projection) 1.93

6.7 RETURN ON EQUITY: Paid up share capital, share deposit and reserves & surplus, at the beginning of the year, considered for projection of „Return on Equity‟ for the year FY-19 as indicated below; (Return on Equity: Rs. in Crores) Year FY-18 FY-19 Opening balance of paid up share capital 358.07 358.07 Share Deposit 14.00 14.00 Reserves & Surplus 170.20 250.22 Less: Recapitalized Security Deposit (-)26.00 (-)26.00 Total: 516.27 596.29 Rate of ROE (grossed up with MAT) [*] 19.706% 19.706% As approved in TO-2017/TO-2016. 79.90 95.53 RoE (Revised projection) 101.74 117.50 [*] Considered 15.50% of return on equity duly grossed up with the applicable MAT of 21.342% which works out to 19.706%, as approved in Tariff Order 2017. Status of Debt Equity Ratio: Particulars FY-18 FY-19 GFA Closing Balance 2081.60 2417.58 Debt 669.89 788.14 Equity 596.29 688.71 Normative Debt @ 70% of GFA 1457.12 1692.31 Normative Equity @ 30% of GFA 624.48 725.27 % of actual DEBT on GFA 32.18 % 32.60 % % of actual EQUITY on GFA 28.65 % 28.49 %

From the above table, it is clear that the debt equity amount lies within the normative debt equity ratio of 70:30 on the closing balances of GFA.

MESCOM: ERC & Tariff Petition for FY-19: Ch.6-ARR

6.8 PROVISION FOR TAX: In line with the norms adopted by the Hon‟ble Commission in the Tariff Orders, MESCOM has not claimed separately any amount towards income tax as the RoE has been computed & projected considering MAT.

6.9 FUNDS TOWARDS CONSUMER RELATIONS: Hon‟ble Commission has allowed an amount of Rs.50 lakhs towards Consumer Education / Relations activities. The same amount has been projected for FY-19. In the year FY-17, actual amount incurred under this head is Rs.31.00 lakhs.

6.10 ABSTRACT – Annual Revenue Requirement (Rs. In Cr.): Projections of the expenditures in all the sub heads are detailed in the respective prescribed formats D1 to D21 and the values are abstracted in the below table;

Fy-13 Fy-14 Particulars As per As per As per As per Accounts APR Accounts APR Power Purchase Cost 1,378.27 1,378.34 1,484.68 1,484.68 KPTCL Transmission charges 158.89 158.89 182.87 182.87 SLDC Charges 0.25 0.20 1.33 1.33 O&M Costs 260.07 260.07 289.28 286.50 Depreciation 50.84 24.24 54.71 19.88 Interest & Finance Charges 184.66 102.76 182.64 105.68 Interest & Finance Charges Capitalized (2.07) (2.07) (2.51) (2.51) Other Debits 4.19 2.53 13.65 11.58 Extraordinary Items (78.43) (43.20) (0.47) - Net prior period (credits) / charges (11.93) (11.94) (1.89) (1.11) Provision for taxes 1.73 (6.64) 0.47 - Funds towards consumer relations 0.05 - 0.23 0.23 TOTAL: 1,946.52 1,863.18 2,204.99 2,089.13 Return on Equity - 35.79 28.61 Regulatory Asset - - - - Regulatory Asset carry forward - - - - Prior period subsidy - 122.48 - - APR (Surplus) / Deficit - - - - Disallowance for imprudent capex - - - - Other Income (210.40) (24.15) (252.42) (250.97) ARR: 1,736.12 1,997.30 1,952.57 1,866.77

MESCOM: ERC & Tariff Petition for FY-19: Ch.6-ARR

Fy-15 Fy-16 Particulars As per As per As per As per Accounts APR Accounts APR Power Purchase Cost 1,467.63 1,467.63 2,010.15 2,010.15 KPTCL Transmission charges 184.41 184.41 218.70 218.70 SLDC Charges 6.10 6.10 1.71 1.71 O&M Costs 321.77 303.12 349.69 338.46 Depreciation 63.68 63.95 63.74 64.08 Interest & Finance Charges 196.95 123.03 111.91 125.89 Interest & Finance Charges Capitalized (2.39) (3.40) (1.30) (2.32) Other Debits 6.46 2.97 5.03 4.53 Extraordinary Items (3.43) - (5.02) (2.70) Net prior period (credits) / charges (28.62) (4.95) (8.66) (8.66) Provision for taxes 3.43 - 2.31 - Funds towards consumer relations 0.05 0.05 0.11 0.11 TOTAL: 2,216.04 2,142.91 2,748.37 2,749.95 Return on Equity 42.74 - 49.20 Regulatory Asset 101.54 - - - Carrying Cost Regulatory Asset - - - 6.05 Prior period subsidy - - - - APR (Surplus) / Deficit - - - - Disallowance for imprudent capex - - - - Other Income (140.17) (138.82) (396.26) (46.25) ARR: 2,177.41 2,046.83 2,352.11 2,758.95

(ABSTRACT – Annual Revenue Requirement -Rs. In Cr.) Fy-17 Particulars As approved As per As proposed In TO-2016 Accounts for APR Power Purchase Cost 1,949.45 2,291.69 2,291.69 KPTCL Transmission charges 246.90 248.38 248.38 SLDC Charges 1.64 1.64 1.64 O&M Costs 391.78 371.13 371.13 Depreciation 77.38 78.45 78.45 Interest & Finance Charges 163.12 129.31 138.07 Interest & Finance Charges Capitalized (2.39) (2.39) (2.39) Other Debits - 20.20 20.20 Extraordinary Items - (3.07) - Net prior period (credits) / charges - 190.13 190.13 Provision for taxes - 3.07 3.07 Funds towards consumer relations 0.50 0.31 0.31 TOTAL: 2,828.38 3,328.85 3,340.68 Return on Equity 71.61 - 80.76 Regulatory Asset 92.25 - - Regulatory Asset carry forward (92.25) - - Prior period subsidy - - - APR (Surplus) / Deficit (144.52) - - Disallowance for imprudent capex - - - Other Income (73.77) (531.88) (73.71) ARR: 2,773.95 2,796.97 3,347.73

MESCOM: ERC & Tariff Petition for FY-19: Ch.6-ARR

Fy-18 Fy-19 Particulars As apprd. Revised As apprd. Revised In TO-2017 Projections In TO-2016 Projections Power Purchase Cost 1,796.76 2335.16 2,172.91 2,407.58 KPTCL Transmission charges 216.20 216.20 251.83 251.83 SLDC Charges 1.94 1.94 2.02 2.02 O&M Costs 429.30 441.53 477.89 509.83 Depreciation 79.60 90.91 95.29 106.86 Interest & Finance Charges 164.48 174.70 181.33 193.99 Interest & Finance Charges Capitalized (1.30) (2.39) (2.39) (2.39) Other Debits - 3.95 - 3.95 Extraordinary Items - - - - Net prior period (credits) / charges - 1.93 - 1.93 Provision for taxes - - - - Funds towards consumer relations 0.50 0.50 0.50 0.50 TOTAL: 2,687.48 3,263.94 3,179.38 3,475.82 Return on Equity 79.90 101.74 95.53 117.50 Regulatory Asset - - - - Regulatory Asset carry forward - - - - Prior period subsidy - APR (Surplus) / Deficit 395.74 - 537.82 Disallowance for imprudent capex (0.40) - - Other Income (39.87) (28.77) (95.36) (28.77) ARR: 3,122.85 3,337.40 3,179.55 4,102.65

6.11 It is to be submitted before the Hon‟ble Commission to consider the projected Aggregate Annual Revenue Requirement of MESCOM as elaborated above. The enclosed formats from A1 to D24 have contained the costs under each sub heads of income / expenditure.

6.12 CAPITAL INVESTMENT PROGRAMME FOR FY-15: Capital Investment Programme envisaged for Fy-17 & FY-18 are detailed in Annexure-4. :-:-:-:-:

MESCOM: ERC & Tariff Petition for FY-19: Ch.7-Deficit

CHAPTER-7 REVENUE FROM EXISTING TARIFF CHARGES and DEFICIT

7.1 Revenue From Existing Tariff / Non-Tariff (Misc.) Income: In order to compute the expected revenue from the existing tariff charges for the years FY-19, the energy sales projected in Chapter-5 has been considered. The detailed calculations are indicated in Format-D21.

Accordingly, actual / projected revenue from sale of power is computed and projected in the below table;

(Revenue from existing Tariff / Non-Tariff (Misc.) Income: Rs. in Crores) Year Revenue from Sale Non-Tariff Total of Power (Misc.) LT HT Income FY 17 (As aapd. In TO-2016) 1764.81 974.01 80.44 2819.26 FY 17 (Actuals) 1963.36 788.52 58.03 2809.91 FY 18 (Projection @ existing tariff) 2218.78 818.37 58.03 3095.18 FY 19 (Projection @ existing tariff) 2308.16 831.05 58.03 3197.24 FY 19 (Projection @ existing tariff) 2842.94 917.78 58.03 3818.75

7.2 REVENUE DEFICIT: (Rs. in Crores) Year Revenue Annual From Existing PROFIT / Revenue Tariff / Non- (DEFICIT) Requirement Tariff (Misc.) Income FY 17 (As aapd. In TO-2016) 2773.95 2773.95 - FY 17 (As proposed for APR) 3347.73 2809.91 (537.82) FY 18 (Projection) 3337.40 3095.18 (242.22) FY 19 (Projection) 4102.65 3197.24 (905.41)

7.3 Average Cost of Supply & Average Realization Rate: Revenue Avg. Energy Avg. Cost Deficit Realizatio Year Sales of Supply per unit n Rate (MU) [*] (Rs./Unit) of sales (Rs./Unit) (Rs./Unit) FY 17 (As aapd. In TO-2016) 4611.84 6.01 6.01 - FY 17 (Actuals) 4707.35 7.11 5.97 1.14 FY 18 (Projection) 4800.03 6.95 6.45 0.50 FY 19 (Projection) 5040.54 8.14 6.34 1.80 [*] excluding KPCL & wheeling consumption :-:-:-:-:

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

CHAPTER-8

TARIFF REVISION PROPOSAL

8.1 REVENUE DEFICIT: MESCOM has considered the Annual Revenue Requirement and revenue deficit indicated in the below table for proposing the tariff revision for the year FY-19.

Particulars Rs. In Cr. ARR for FY-19 3564.83 ADD: Deficit of FY-17 as proposed for Annual 537.82 Performance review, as per MYT norms. Net ARR for FY-19 4102.65 Energy Sales proposed for FY-19 5040.54 MU (excluding KPCL/wheeling Consumption.) Avg. Cost of Supply (Rs./unit) 8.14

Sl. Particulars Rs. In Cr. No. a. Net Annual Revenue Requirement for FY-19 4102.65 Revenue from existing tariff, excluding revenue b. 2244.62 from LT-1 & LT-4a categories. c. Revenue Deficit before subsidy [a-b] 1857.75 d. Estimated GoK Subsidy for FY-18 (@ existing tariff) 952.62 e. Net Revenue Deficit for FY-18 [c-d] 905.41

8.2 Tariff Revision Proposal:

With the present tariff charges, it is estimated that MESCOM can only realize revenue of Rs.3197.24 Cr in FY 19 against the estimated net Aggregate Annual Revenue Requirement of Rs.4102.65 Cr leaving a revenue deficit of Rs.905.41 Cr. In order to bridge the gap, upward revision of tariff charges is inevitable.

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

Hence, MESCOM is proposing the revision of tariff, both fixed charges and energy charges, as detailed in the foregoing paragraphs.

Fixed / Demand Charges: In the year FY-17, the amount of fixed cost in the total ARR of Rs.3347.73 Cr was Rs.1302 Cr (as indicated below). As against this the fixed cost recovered through tariff was only Rs.262 Cr which means MESCOM is realizing only 20% of the fixed cost and remaining 80% of the fixed cost in inbuilt in the variable charges.

Fixed Cost in Power Purchase : Rs.466.27 Cr Transmission Charges : Rs.248.38 Cr O&M Cost : Rs.371.13 Cr Depreciation : Rs.78.45 Cr. Interest & Finance Charges : Rs.138.07 Cr. Total : Rs.1302.30 Cr.

For the year FY-19, the fixed cost component in the projected ARR of 4102.37 Cr is estimated as Rs.291 Cr by which MESCOM will able to realize only 17% fixed costs. Fixed Cost in Power Purchase : Rs.624.72 Cr Transmission Charges : Rs.251.83 Cr O&M Cost : Rs.509.83 Cr Depreciation : Rs.106.86 Cr. Interest & Finance Charges : Rs.193.99 Cr. Total : Rs.1687.23 Cr.

In view of the above, MESCOM is submitting before the Hon’ble Commission to consider increase in Fixed / Demand Charges indicated in the below table.

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

Sl. Tariff Load Fixed / Demand Charges No. Category Unit (Rs./Month) Existing Proposed Hike 1 LT-1 Minimum 30 50 20 2 LT-2 (a) i kW 40 70 30 kW 50 80 30 3 LT-2 (a) ii kW 25 55 30 kW 40 70 30 4 LT-2 (b) i kW 55 75 20 kW 85 105 20 5 LT-2 (b) ii kW 45 65 20 kW 70 90 20 6 LT-3 i kW 60 80 20 7 LT-3 ii kW 50 70 20 8 LT-4 (a) HP 0 20 20 9 LT-4 (b) HP 50 70 20 10 LT-4 (c) i HP 40 60 20 11 LT-4 (c) ii HP 50 70 20 12 LT-5 (a) HP 40 60 20 HP 45 65 20 HP 60 80 20 HP 120 140 20 13 LT-5 (b) HP 35 55 20 HP 40 60 20 HP 55 75 20 HP 110 130 20 14 LT-6 (a) HP 55 75 20 15 LT-6 (b) kW 70 90 20 16 LT-7(a) kW 190 210 20 17 LT-7(b) kW 60 80 20 18 HT-1 kVA 200 400 200 19 HT-2 (a) kVA 200 400 200 20 HT-2 (b) kVA 220 400 180 21 HT-2 (c) i kVA 200 400 200 22 HT-2 (c) ii 200 400 200 23 HT-3(a)i HP/Annum 1240 1480 240 24 HT-3(a)ii HP 50 70 20 25 HT-3 (b) HP/Annum 1240 1480 240 26 HT-4 kVA 120 200 80 27 HT-5 HP 240 400 160

With the above hike in Fixed/Demand Charges, MESCOM will be above to recover about Rs.499 Cr in FY-19 which will be around 30% of the fixed cost component.

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

Energy Charges: For FY-19, MESCOM is proposing different hike rates for different categories as indicated in the below table. Further, MESCOM is proposing to reduce the energy charges by Rs.1/- per unit in respect of HT-2a: Industrial tariff category.

Sl. Tariff Energy Charges No. Category (Rs./Unit) Existing Proposed Hike 1 LT-1 6.51 7.58 1.07 2 LT-2 (a) i 3.25 3.65 0.40 4.70 5.20 0.50 6.25 7.00 0.75 7.30 8.30 1.00 3 LT-2 (a) ii 3.15 3.55 0.40 4.40 4.90 0.50 5.95 6.70 0.75 6.80 7.80 1.00 4 LT-2 (b) i 6.50 7.50 1.00 7.75 8.75 1.00 5 LT-2 (b) ii 5.95 6.95 1.00 7.20 8.20 1.00 6 LT-3 i 7.50 8.00 0.50 8.50 9.00 0.50 7 LT-3 ii 7.00 7.50 0.50 8.00 8.50 0.50 8 LT-4 (a) 5.21 6.85 1.64 9 LT-4 (b) 3.00 3.50 0.50 10 LT-4 (c) i 3.00 3.50 0.50 11 LT-4 (c) ii 3.00 3.50 0.50 12 LT-5 (a) 5.10 5.60 0.50 6.05 6.55 0.50 6.35 6.85 0.50 13 LT-5 (b) 5.00 5.50 0.50 5.90 6.40 0.50 6.20 6.70 0.50 14 LT-6 (a) 4.25 5.50 1.25 15 LT-6 (b) 5.85 7.10 1.25 16 LT-7(a) 10.00 11.00 1.00 17 LT-7(b) 10.00 11.00 1.00 18 HT-1 4.85 5.85 1.00 19 HT-2 (a) 6.60 5.60 -1.00 6.80 5.80 -1.00

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

Sl. Tariff Energy Charges No. Category (Rs./Unit) Existing Proposed Hike 20 HT-2 (b) 8.25 8.50 0.25 8.35 9.00 0.65 21 HT-2 (c) i 6.40 7.40 1.00 6.80 7.80 1.00 22 HT-2 (c) ii 7.40 8.40 1.00 7.80 8.80 1.00 23 HT-3(a)i 2.25 3.25 1.00 24 HT-3(a)ii 2.25 3.25 1.00 25 HT-3 (b) 4.25 5.25 1.00 26 HT-4 6.20 6.70 0.50 27 HT-5 10.00 11.00 1.00 28 SEZ 5.80 6.80 1.00

With the above proposed hike, it is estimated that MESCOM will realize additional revenue to the extent of Rs.621.51 Cr leaving a un-met revenue gap of Rs.283.90 Cr. The Hon’ble Commission is requested to consider this un-met revenue gap of Rs.283.90 Cr as “Regulatory Asset” and carry forward the same to the next tariff period with appropriate carrying cost.

Sl. Particulars Rs. In Cr. No. 1. Additional Revenue due to hike in Fixed Charges / 208.60 Demand Charges 2. Additional Revenue due to hike in energy Charges 412.91 3. Total additional revenue due to proposed revision in 621.51 tariff charges (1+2) 4. ARR for FY-19 3564.83 5. ADD: Deficit of FY-17 as proposed for Annual 537.82 Performance review, as per MYT norms. 6. Net ARR for FY-19 (4+5) 4102.65 7. Revenue from existing tariff 3197.24 8. Net Revenue Deficit for FY-19 (6-7) 905.41 9. Un-met Revenue Gap after considering the additional revenue with the proposed revision (8-3) 283.90 [Proposed to be considered as “Regulatory Asset”]

10. Energy Sales proposed for FY-19 5040.54 MU (excluding KPCL/wheeling Consumption.) 11. Avg. Cost of Supply (including un-met gap) [6/10] Rs.8.14/Unit 12. Avg. Cost of Supply (excluding un-met gap) [(6-9)/10] Rs.7.58/Unit

Avg. per unit hike required to meet total gap of 905.13 Cr Rs.1.80/Unit Avg. per unit hike proposed Rs.1.23/Unit

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

8.3 LT-1a (Applicable to BJ/KJ): Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For all units consumed 651 Ps/unit 758 Ps/unit

8.3 LT-2a (Applicable to lighting/combined lighting, heating and motive Power installations of residential houses):

Applicable in areas coming under City Municipal Corporations and all areas under Urban Local Bodies [LT-2a(i)]: Fixed charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For the first KW Rs.40/- per KW Rs.70/- per KW For every additional KW Rs.50/- per KW Rs.80/- per KW Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For first 30 units 325 Ps/unit 365 Ps/unit For next 70 units 470 Ps /unit 520 Ps/unit For next 100 units 625 Ps/unit 700 Ps/unit For above 200 units 730 Ps/unit 830 Ps/unit

Applicable in areas under Village Panchayats [LT-2a(ii)]: Fixed charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For the first KW Rs.25/- per KW Rs.55/- per KW For every additional KW Rs.40/- per KW Rs.70/- per KW Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For first 30 units 315 Ps/unit 355 Ps/unit For next 70 units 440 Ps /unit 490 Ps/unit For next 100 units 595 Ps/unit 670 Ps/unit For above 200 units 680 Ps/unit 780 Ps/unit

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

8.4 LT-2b (Applicable to the installations of Private Professional and other private educational institutions including aided, unaided institutions having only lighting or combined lighting & heating, and motive power): Applicable in areas coming under City Municipal Corporations and all areas under Urban Local Bodies [LT-2b(i)]: Fixed charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For every KW Rs.55/- per KW Rs.75/- per KW Subject to a minimum of Rs.85/- per Month Rs.105/- per Month Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For first 200 units 650 Ps/unit 750 Ps/unit For above 200 units 775 Ps/unit 875 Ps/unit

Applicable in areas under Village Panchayats [LT-2b(ii)]: Fixed charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For every KW Rs.45/- per KW Rs.65/- per KW Subject to a minimum of Rs.70/- per Month Rs.90/- per Month Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For first 200 units 595 Ps/unit 695 Ps/unit For above 200 units 720 Ps/unit 820 Ps/unit

8.5 LT-3 (Applicable to Commercial Lighting, Heating and Motive Power installations): Applicable in areas coming under City Municipal Corporations and all areas under Urban Local Bodies [LT-3(i)]: Fixed charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For every KW Rs.60/- per KW Rs.80/- per KW Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For first 50 units 750 Ps/unit 800 Ps/unit For above 50 units 850 Ps/unit 900 Ps/unit

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

Applicable in areas under Village Panchayats [LT-3(ii): Fixed charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For every KW Rs.50/- per KW Rs.70/- per KW Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For first 50 units 700 Ps/unit 750 Ps/unit For above 50 units 800 Ps/unit 850 Ps/unit

8.6 LT-4a (Applicable to IP sets 10HP & below):

Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For all units consumed 521 Ps/unit 685 Ps/unit

8.6 LT-4b (Applicable to IP sets above 10HP):

Fixed charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For every HP Rs.50/- per HP Rs.70/- per HP Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For all units consumed 300 Ps/unit 350 Ps/unit

8.7 LT-4c (Applicable to Private Horticultural Nurseries, Coffee and Tea plantations):

Applicable to Private Horticultural Nurseries, Coffee and Tea plantations of sanctioned load of 10 HP & below (LT-4 (c)(i): Fixed charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For every HP Rs.40/- per HP Rs.60/- per HP Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For all units consumed 300 Ps/unit 350 Ps/unit

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

Applicable to Private Horticultural Nurseries, Coffee and Tea plantations of sanctioned load above 10 HP (LT-4 (c)(ii): Fixed charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For every HP Rs.50/- per HP Rs.70/- per HP Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For all units consumed 300 Ps/unit 350 Ps/unit

8.8 LT-5 (Applicable to Heating & Motive power (including lighting) installations of industrial Units, etc.): Applicable to areas under Municipal Corporations [LT-5a]: Fixed charges per month: EXISTING PROPOSED PARTICULARS TARIFF TARIFF For 5 HP & below Rs.40/- per HP Rs.60/- per HP For above 5 HP & below 40 HP Rs.45/- per HP Rs.65/- per HP For 40 HP & above but below 67 HP Rs.60/- per HP Rs.80/- per HP For 67 HP & above Rs.120/- per HP Rs.140/- per HP Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For first 500 units 510 Ps/unit 560 Ps/unit For next 500 units 605 Ps/unit 655 Ps/unit For above 1000 units 635 Ps/unit 685 Ps/unit

Applicable to all areas other than those covered under LT-5(b): Fixed charges per month: EXISTING PROPOSED PARTICULARS TARIFF TARIFF For 5 HP & below Rs.35/- per HP Rs.55/- per HP For above 5 HP & below 40 HP Rs.40/- per HP Rs.60/- per HP For 40 HP & above but below 67 HP Rs.55/- per HP Rs.75/- per HP For 67 HP & above Rs.110/- per HP Rs.130/- per HP Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For first 500 units 500 Ps/unit 550 Ps/unit For next 500 units 590 Ps/unit 640 Ps/unit For above 1000 units 620 Ps/unit 670 Ps/unit

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

8.9 LT-6 (Applicable to water supply and sewerage pumping installations): Fixed charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For every HP Rs.55/- per HP Rs.75/- per HP Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For all units consumed 425 Ps/unit 550 Ps/unit

8.10 LT-6 (Applicable to Public Street lights/Park lights): Fixed charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For every KW Rs.70/- per KW Rs.90/- per KW Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For all units consumed 585 Ps/unit 710 Ps/unit

8.11 LT-7 (Temporary Power Supply and permanent Supply to Advertising Hoardings): Applicable to Temporary Power Supply for all purposes LT-7(a): Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF 1000 Ps/unit subject to a 1100 Ps/unit subject to a weekly minimum of weekly minimum of Less than 67 HP: Rs.190/ KW of Rs.210 / KW of sanctioned load sanctioned load

Applicable to Hoardings and Advertisement boards on permanent connection basis LT-7(b): Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF Fixed Charges at Rs.70 Fixed Charges at Rs.90 per KW/month. per KW/month. Less than 67 HP: Energy Charges at Energy Charges at 1000 Ps/unit. 1100 Ps/unit.

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

8.12 HT-1 (Applicable to Water Supply, Drainage / Sewerage water treatment plant and Sewerage Pumping installations):

Demand charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF Rs.200/- per KVA of Rs.400/- per KVA of For every KVA billing demand billing demand Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For all units consumed 485 Ps/unit 585 Ps/unit

8.13 HT-2a (Applicable to Industries, Factories, Workshops, etc.):

8.14 HT-2b (Applicable to Commercial Complexes, Cinemas, Hotels, Boarding & Lodging, etc.):

Demand charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF Rs.220/- per KVA of Rs.400/- per KVA of For every KVA billing demand billing demand Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For two one lakh units 825 Ps/unit 850 Ps/unit For above two lakh units 835 Ps/unit 900 Ps.unit

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

8.14 HT-2c(i) (Applicable to Government Hospitals and Hospitals run by charitable institutions and ESI hospitals and Universities, Educational Institutions belonging to Government, Local Bodies, Aided Institutions and Hostels of all Educational Institutions.:

9.14 HT-2c(ii) (Applicable to Hospitals and Educational Institutions other than those covered under HT-2c(i):

8.15 HT-3a (Applicable to Lift irrigation Schemes/ Lift irrigation societies):

Applicable to LI schemes under Govt Departments/ Government owned Corporations [HT-3(a)(i)]: Energy charges per unit: EXISTING TARIFF PROPOSED TARIFF 225 Ps/ unit subject to an annual min. 325 Ps/ unit subject to an annual min. of Rs.1480 per HP. of Rs.1480 per HP.

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

Applicable to Private LI schemes and Lift Irrigation societies: Connected to Urban/Express feeders [HT-3(a)(ii)]:

Fixed charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF Rs.50/- per HP of Rs.70/- per HP of For every HP sanctioned load sanctioned load Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For all units consumed 225 Ps/unit 325 Ps/unit

Applicable to Private LI schemes and Lift Irrigation societies other than those covered under (ii) above [HT-3(a)(iii)]: Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For all units consumed 200 Ps/unit 348 Ps/unit

8.16 HT-3b (Applicable to Irrigation and Agricultural Farms, Government Horticultural Farms, Private Horticulture nurseries, Coffee, Tea, Coconut & Arecanut Plantations): Energy charges per unit: EXISTING TARIFF PROPOSED TARIFF 425 Ps/unit subject to an annual min. 525 Ps/unit subject to an annual min. of Rs.1240 per HP. of Rs.1480 per HP.

8.17 HT-4 (Applicable to Residential apartments and colonies (whether situated outside or inside the premises of the main HT Installation) availing power supply independently or by tapping the main H.T. line):

Demand charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF Rs.120/- per KVA of Rs.200/- per KVA of For every KVA billing demand billing demand Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For all units consumed 620 Ps/unit 670 Ps/unit

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

8.18 HT-5 (HT Temporary Supply):

Demand charges per month: PARTICULARS EXISTING TARIFF PROPOSED TARIFF Rs.240/- per KVA of Rs.400/- per KVA of For every KVA billing demand billing demand Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For all units consumed 1000 Ps/unit 1100 Ps/unit

8.19 MSEZ TARIFF: Energy charges per unit: PARTICULARS EXISTING TARIFF PROPOSED TARIFF For all units consumed 580 Ps/unit 680 Ps/unit

8.20 The proposed Tariff schedule for FY-19 along with GENERAL TERMS & CONDITIONS is detailed in Chapter-8. Further, it is submitted that classification of consumer categories and all other General Terms & Conditions of Tariff are same as approved by Hon’ble Commission in Tariff Order-2017.

8.21 In the below table, category wise revenue as per existing tariff and proposed tariff is outlined.

FY-19 (Rs. In Cr.) Particulars @ Existing Tariff @ Proposed as per T.O.-2017 Tariff LT-1: BJ/KJ (=< 40 units) 27.09 31.55 LT-2a: Domestic 754.66 912.97 LT-2b: Private Edu. Institutions 12.58 14.70 LT-3: Commercial 330.22 358.27 LT-4a: IP Sets-10HP & below 925.53 1216.86 LT-4b: IP Sets-Above 10HP 0.71 0.92 LT-4c: Nurseries/Coffee/Tea 5.06 6.50 LT-5: Industrial 104.57 120.10 LT-6: Water Supply 63.86 83.12 LT-6: Street Lights 47.38 57.70 LT-7: Temporary 36.50 40.25 LT-Total: 2308.16 2842.94

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

FY-19 (Rs. In Cr.) Particulars @ Existing Tariff @ Proposed as per T.O.-2017 Tariff HT-1: Water Supply 48.67 62.85 HT-2a: Industrial 438.39 454.60 HT-2b: Commercial 183.57 206.30 HT-2c: Edu.Inst. & Hospitals 122.13 148.26 HT-3a: LI Schemes 5.41 7.35 HT-3b: LI Schemes 0.14 0.18 HT-4: Residential Apartments 15.03 17.09 HT-5: Temporary Supply 7.09 8.70 Suppy to MSEZ 10.62 12.45 HT-Total: 832.15 917.78 Miscellaneous 58.03 58.03 GRAND TOTAL: 3197.24 3818.75 The detailed calculations are in Format-D21 & D-2.

8.22 Open Access / Wheeling charges: 8.22.1 Wheeling Charges in Cash: The allocation of the distribution network costs to HT and LT networks for determining the wheeling changes in Cash is computed in the ratio 30:70 as per the norms adopted by the Hon’ble Commission in the earlier tariff orders.

Distribution ARR 528.72 Cr. Energy Sales (excluding KPCL/wheeling consumption) 5040.54 MU Wheeling charges 105 Paise/unit Wheeling charges for HT Net work (30%) 32 Paise/unit Wheeling charges for LT Net work (70%) 73 Paise/unit Accordingly, MESCOM proposes wheeling charges in cash for HT net work and LT net work as 32 paise/unit and 73 paise/unit, respectively, for MESCOM.

8.22.2 Wheeling Charges in Kind (Technical Loss compensation): The proposed distribution loss for MESCOM for FY-19 is 11.15%. Hence, as per the norms adopted by the Hon’ble Commission in the earlier tariff orders, MESCOM proposes for wheeling charges in kind i.e. technical loss compensation for HT net work and LT net work as 4.40% and 6.70%, respectively.

MESCOM: ERC & Tariff Petition for FY-19: Ch.8-Tariff Proposal

8.22.3 Cross Subsidy Surcharge: In line with GOI notified revised Tariff Policy dated 28-01-2016 MESCOM is proposing the Cross Subsidy Surcharge for different voltage levels for FY-19 as follows.

FY-19 (Projections @ proposed tariff) Rs./Unit Voltage Class HT-1 HT-2a HT-2b HT-2c HT-4 HT-5 11 kV - 1.02 3.11 2.30 0.52 8.55 33 kV - 1.26 3.35 2.54 0.76 8.79 66 kV & above 0.04 1.31 3.40 2.59 0.81 8.84

Calculation Sheet enclosed as Annexure-5.

8.23 Green Tariff: In the Tariff Order 2017, Hon’ble Commission has continued the Green Tariff at Ps.50 per unit as the additional tariff over & above the normal tariff which is optional for HT consumers.

8.24 Cross Subsidy as per existing tariff: Calculation Sheet enclosed as Annexure-6(a).

8.25 Cross Subsidy as per proposed tariff: Calculation Sheet enclosed as Annexure-6(b). :-:-:-:-:

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

CHAPTER-9

PROPOSED ELECTRICITY TARIFF-2019

9.1 GENERAL TERMS AND CONDITIONS OF TARIFF (APPLICABLE TO BOTH HT AND LT): 1. Supply of power is subject to execution of agreement by the Consumer in the prescribed form, payment of prescribed deposits and compliance of terms and conditions as stipulated in the Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka and Regulations issued under Electricity Act 2003 at the time of supply and continuation of power supply is subject to compliance of the said Conditions of Supply / Regulations as amended from time to time.

2. The tariffs are applicable to only single point of supply unless otherwise approved by the Licensee.

3. The Licensee does not bind himself to energize any installation, unless the Consumer guarantees the minimum charges. The minimum charge is the power supply charges in accordance with the tariff in force from time to time. This shall be payable by the Consumer until power supply agreement is terminated, irrespective of the installation being in service or under disconnection.

4. The tariffs in the schedule are applicable to power supply within the Karnataka State.

5. The tariffs are subject to levy of Tax and Surcharges thereon as may be decided by the State Government from time to time.

6. For the purpose of these tariffs, the following conversion table would be used: 1 HP=0.746 KW. 1HP=0.878 KVA.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

7. The bill amount will be rounded off to the nearest Rupee, i.e., the bill amount of 50 Paise and above will be rounded off to the next higher Rupee and the amount less than 50 Paise will be ignored.

8. Use of power for temporary illumination in the premises already having permanent power supply for marriages, exhibitions in hotels, sales promotions etc., is limited to sanctioned load at the applicable permanent power supply tariff rates. Temporary tariff rates will be applicable in case the load exceeds sanctioned load as per the Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka.

9. No LT power supply will be given where the requisitioned load is 50 KW/67 HP and above. This condition does not apply for installations serviced under clause 3.1.1 of K.E.R.C. (Recovery of Expenditure for supply of Electricity) Regulations, 2004 and its amendments from time to time. The applicant is however at liberty to avail HT supply for lesser loads. The minimum contract demand for HT supply shall be 25 KVA or as amended from time to time by the Licensee with the approval of KERC.

10. The Consumer shall not resell electricity purchased from the Licensee to a third party except –

a. Where the Consumer holds a sanction or a tariff provision for distribution and sale of energy, b. Under special contract permitting the Consumer for resale of energy in accordance with the provisions of the contract.

11. Non-receipt of the bill by the Consumer is not a valid reason for non-payment. The Consumer shall notify the office of issue of the bill if the same is not received within 7 days from the meter reading date. Otherwise, it will be deemed that the bills have reached the Consumer in due time.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

12. The Licensee will levy the following charges for non-realization of each Cheque

Cheque amount upto 5% of the amount subject to a 1. Rs. 10,000/- minimum of Rs.100/- Cheque amount of Rs. 10,001/- and 3% of the amount subject to a 2. upto Rs. 1,00,000/- minimum of Rs.500/- Cheque amount above 2% of the amount subject to a 3. Rs. 1Lakh min. of Rs.3,000/- 13. In respect of power supply charges paid by the Consumer through money order, Cheque /DD sent by post, receipt will be drawn and the Consumer has to collect the same.

14. In case of any belated payment, simple interest at the rate of 1 % per month will be levied on the actual No. of days of delay subject to a minimum of Re.1/- for LT installation and Rs.100/- for HT installation. No interest is however levied for arrears of Rs.10/- and less.

15. All LT Consumers, except Bhagya Jyothi and Kutir Jyothi Consumers, shall provide current limiter/Circuit Breakers of capacity prescribed by the Licensee depending upon the sanctioned load.

16. All payments made by the Consumer will be adjusted in the following order of priority: - a) Interest on arrears of Electricity Tax b) Arrears of Electricity Tax c) Arrears of Interest on Electricity charges d) Arrears of Electricity charges e) Current month‟s dues

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

17. For the purpose of billing, i) the higher of the rated load or sanctioned load in respect of LT installations which are not provided with Electronic Tri-Vector meter. ii) sanctioned load or MD recorded, which ever is higher, in respect of installations provided with Electronic Tri-Vector meter. will be considered.

Penalty and other clauses shall apply if sanctioned load is exceeded.

18. The bill amount shall be paid within 15 days from the date of presentation of the bill failing which the interest becomes payable.

19. For individual installations, more than one meter shall not be provided under the same tariff. Wherever two or more meters are existing for individual installation, the sum of the consumption recorded by the meters shall be taken for billing, till they are merged. 20. In case of multiple connections in a building, all the meters shall be provided at one easily accessible place in the ground floor / cellar floor.

21. Reconnection charges: The following reconnection charges shall be levied incase of disconnection and included in the monthly bill.

For reconnection of Single Phase Domestic installations a. Rs.20/-per Installation under Tariff schedule LT 1 & LT2 (a) Three Phase Domestic installations under Tariff schedule LT2 (a) and b. Rs.50/-per Installation Single Phase Commercial & Power installations. All LT installations with 3 Phase c. Rs.100/-per Installation supply other than LT2 (a) d. All HT& EHT installations Rs.500/-per Installation

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

22. Revenue payments up to and inclusive of Rs.10,000/- shall be made by cash or cheque or D.D and payments above Rs.10,000/- shall be made by cheque or D.D only. Payments under other heads of account shall be made by cash or D.D up to and inclusive of Rs.10, 000/- and payment above Rs.10,000/- shall be by D.D only.

Note: The Consumers can avail the facility of payment of monthly power supply bill through Electronic clearing system (ECS)/ Credit cards / on line E-Payment @ www.billjunction.com at counters wherever such facility is provided by the Licensee in respect of revenue payments up to the limit prescribed by the RBI.

23. For the types of installations not covered under any Tariff schedules, the Licensee is permitted to classify such installations under appropriate Tariff schedule under intimation to the K.E.R.C.

24. Seasonal Industries (Applicable to all Seasonal Industries): i) The industries that intend to avail this benefit shall have Electronic Tri- Vector Meter fitted to their installations.

ii) „Working season‟ months and „off-season‟ months shall be determined by an order issued by the Executive Engineer of the concerned O&M Division of the Licensee as per the request of the Consumer and will continue from year to year unless otherwise altered. The Consumer shall give a clear one month‟s notice in case he intends to change his „ working season‟.

iii) The consumption during any month of the declared off-season shall not be more than 25% of the average consumption of the previous working season.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

iv) The „Working season‟ months and „off-season‟ months shall be full– calendar months. If the power availed during a month exceeds the allotment for the „off-season‟ month, it shall be taken for calculating the billing demand as if the month is the „working season‟ month.

v) The Consumer can avail the facility of „off-season‟ up to six months in a calendar year not exceeding in two spells in that year. During the „ off- season ‟ period, the Consumer may use power for administrative offices etc., and for overhauling and repairing plant and machinery.

25. Whether an institution availing Power supply can be considered as charitable or not will be decided by the Licensee on the production of certificate Form- 12 A from the Income Tax department.

26. Time of the Tariff (ToD): The Commission has decided to make Time of Day Tariff compulsory for HT2(a) and HT2(b) consumers with a contract demand of 500 KVA and above with effect from 1st September 2012. The optional ToD would continue till 1st September 2012 for such HT2(a) and HT2(b) consumers. Further, the optional ToD would continue as existing earlier for HT2(a) and HT2(b) consumers with contract demand of less than 500 KVA. Also the ToD for HT1 consumers on optional basis would continue as existing earlier. Details of ToD tariff are indicated under the respective tariff category.

27. SICK INDUSTRIES: The Government of Karnataka has extended certain reliefs to sick industries under the New Industrial Policy 2001-06 vide G.O.No.CI 167 SPI 2001, dated 30.06.2001. The Commission, in its Tariff Order 2002 has accorded approval for implementation of reliefs to the sick industries as per the Government policy and the same was continued in the Tariff Order 2003. The Commission approves continuation of the implementation of reliefs to sick industries by the Licensees subject to collection of the amount of relief from the GOK in advance.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

28. Incentive for Prompt Payment / Advance Payment: An incentive at the rate of 0.25% of such bill shall be given to the following Consumers by way of adjustment in the subsequent month‟s bill: i) In all cases of payment through ECS. ii) And in the case of monthly bills exceeding Rs.1,00,000/- (Rs. one lakh), if the payment is made 10 days in advance of the due date. iii) Advance Payment exceeding Rs.1000/- made by the Consumers towards monthly bills

29. Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka and amendments issued thereon from time to time and Regulations issued under Electricity Act 2003 will prevail over the extract given in this tariff book in the event of any discrepancy.

30. Self-Reading of Meters: The Commission has approved Self-Reading of Meters by Consumers and issue of bills by the Licensee based on such readings and the Licensee shall take the reading at least once in six months and reconcile the difference, if any and raise the bills accordingly. This procedure may be implemented by the Licensee as stipulated under Section 26.01 of Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

9.1 PART-1: Proposed Electric Power Tariff for High Tension Supply: Applicable to Bulk Power Supply of Voltages at 11KV (including 2.3/4.6 KV) and above at Standard High Voltage or Extra High Voltages when the Contract Demand is 50 KW / 67 HP and above.

9.1.1 CONDITIONS APPLICABLE TO BILLING OF HT INSTALLATIONS:

1. Billing Demand A. The billing demand during unrestricted period shall be the maximum demand recorded during the month or 75% of the CD, whichever is higher.

B. When the Licensee has imposed demand cut of 25% or less, the conditions stipulated in (A) shall apply.

C. When the demand cut is in excess of 25%, the billing demand shall be the maximum demand recorded or 75% of the restricted demand, whichever is higher.

D. If at any time the maximum demand recorded exceeds the CD, or the demand entitlement, or opted demand entitlement during the period of restrictions, if any, the Consumer shall pay for the quantum of excess demand at two times the normal rate per KVA per month as deterrent charges as per Section No. 126(6) of Electricity Act 2003. If time of day Meter is fixed and is operational, there will be no penalty for over drawal upto 1. 2 times the Contract Demand during off peak hours, provided, the Licensee has declared the peak and off peak periods. For over drawal during peak periods, and over drawal above 1.2 times the Contract Demand during off peak hours, the penalty shall be two times the normal rate.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

E. During the periods of disconnection, the billing demand shall be 75% of CD, or 75% of the demand entitlement that would have been applicable, had the installation been in service, whichever is less. This provision is applicable only, if the installation is under disconnection for the entire billing month.

F. During the period of energy cut, the Consumer may get his demand entitlement lowered, but not below the percentage of energy entitlement, ( For example, In case the energy entitlement is 40% and the demand entitlement is 80%, the re-fixation of demand entitlement cannot be lower than 40% of the CD). The benefit of lower demand entitlement will be given effect to from the meter reading date of the same month, if the option is exercised on or before 15th of the month. If the option is exercised on or after 16th of the month, the benefit will be given effect to from the next meter reading date. The Consumer shall register such option by paying processing fee of Rs.100/- at the Jurisdictional sub-division office.

i) The billing demand in such cases, shall be the “Revised (Opted) Demand Entitlement” or, the recorded demand, whichever is higher. Such option for reduction of demand entitlement, is allowed only once during the entire span of that particular “Energy Cut Period”. The Consumer, can however opt for a higher demand entitlement up to the level permissible under the demand cut notification, and the benefit will be given effect to from the next meter reading date. Once the Consumer opts for enhancement of demand, which has been reduced under Clause (F), no further revision is permitted during that particular energy cut period.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

ii) The opted reduced demand entitlement will automatically cease to be effective, when the energy cut is revised. The facility for reduction and enhancement can however be exercised afresh by the Consumer as indicated in the previous paras.

G. For the purpose of billing, the billing demand of 0.5 KVA and above will be rounded off to the next higher KVA, and billing demand of less than 0.5 KVA shall be ignored.

2. Power factor (PF): It shall be the responsibility of the HT Consumer to determine the capacity of PF correction apparatus and maintain an average PF of not less than 0.90. i) The specified P.F. is 0.90. If the power factor goes below 0.90 Lag, a surcharge of 3 Paise per unit consumed will be levied for every reduction of P.F. by 0.01 below 0.90 Lag.

ii) The power factor when computed as the ratio of KWh / KVAh will be determined up to 3 decimals (ignoring figures in the other decimal places), and then rounded off to the nearest second decimal as illustrated below: a) 0.8949 to be rounded off to 0.89 b) 0.8951 to be rounded off to 0.90

In respect of Electronic Tri-Vector meters, the recorded average PF over the billing period shall be considered for billing purposes. If the same is not available, the ratio of KWh to KVAh consumed in the billing month shall be considered.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

3. Rebate for supply at high voltage: If the Consumer is availing power at voltage higher than 13.2 KV, he will be entitled to a rebate as indicated below: Supply Voltage Rebate A) 33/66 KV 2 Paise/unit of energy consumed B) 110 KV 3 Paise/unit of energy consumed C) 220 KV 5 Paise/unit of energy consumed

The above rebate will be allowed in respect of all the installations of the above voltage class, including the existing installations, and also for installations converted from 13.2 KV and below to 33 KV and above and also for installations converted from 33/66 KV to 110/220 KV, from the next meter reading date after conversion / service / date of notification of this Tariff order, as the case may be. The above rebate is applicable only on the normal energy consumed by the Consumer, including the consumption under TOD Tariff, and is not applicable on any other energy allotted and consumed, if any, viz.,

i) Wheeled Energy. ii) Any energy, including the special energy allotted over and above normal entitlement. iii) Energy drawal under special incentive scheme, if any.

The above rebate is not applicable for Railway Traction.

4. In respect of Residential Quarters/ Colonies availing Bulk power supply by tapping the main HT supply, the energy consumed by such Colony loads, metered at single point, shall be billed under HT-4 tariff schedule. No reduction in demand recorded in the main HT meter will be allowed.

5. Energy supplied may be utilized for all purposes associated with the working of the installations, such as, Office, Stores, Canteens, Yard Lighting, Water Supply and Advertisements within the premises.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

6. Energy can also be used for construction, modification and expansion purposes within the premises.

7. Power supply under HT-4 tariff schedule may be used for Commercial and other purposes inside the colony, for installations such as Canteen, Club, Shop, Auditorium etc., provided, this load is less than 10% of the CD.

8. In respect of Residential Apartments availing HT Power supply under HT-4 tariff schedule, the supply availed for Commercial and other purposes like Shops, Hotels, etc., will be billed under appropriate tariff schedule, (Only Energy charges) duly deducting such consumption in the main HT supply bill. No reduction in the recorded demand of the main HT meter is allowed. Common areas shall be billed at Tariff applicable to that of the predominant Consumer category.

9. Seasonal Industries a. The industries, which intend to utilize seasonal industry benefit, shall conform to the conditionalities under Para no. 25 of the General terms and conditions of tariff (applicable to both HT & LT). b. The industries that intend to avail this benefit, shall have Electronic Tri-Vector Meter fitted to the installation. c. Monthly charges during the working season shall be the demand charges on 75% of the contract demand or the recorded maximum demand during the month, whichever is higher, plus the energy charges d. Monthly charges during the off season, shall be demand charges on the maximum demand recorded during the month, or 50% of the CD which ever is higher plus the energy charges.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

9.1.2 TARIFF SCHEDULE HT-1: Applicable to Water Supply, Drainage / Sewerage water treatment plant and Sewerage Pumping installations, belonging to Karnataka Urban Water Supply and Sewerage Board, other local bodies, State and Central Government.

RATE SCHEDULE Demand charges Rs.400/kVA of billing demand/month Energy charges 585 paise/unit

TOD Tariff at the option of the Consumer Time of Day Increase + / reduction (-) in energy charges over the normal tariff applicable 06.00 Hrs to 10.00 Hrs (+) 100 paise per unit 10.00 Hrs to 18.00 Hrs 0 18.00 Hrs to 22.00 Hrs (+) 100 paise per unit 22.00 Hrs to 06.00 Hrs (-) 100 paise per unit Note: Energy supplied to residential quarters availing bulk supply by the above category of Consumer, shall be metered separately at a single point, and the energy consumed shall be billed at HT-4 Tariff. No reduction in the demand recorded in the main HT meter will be allowed.

9.1.3 TARIFF SCHEDULE HT-2(a): Applicable to Industries, Factories, Workshops, Research & Development Centres, Industrial Estates, Milk dairies, Rice Mills, Phova Mills, Roller Flour Mills, News Papers, Printing Press, Railway Workshops/KSRTC Workshops/ Depots, Crematoriums, Cold Storage, Ice & Ice-cream mfg. Units, Swimming Pools of local bodies, Water Supply Installations of KIADB and other industries, all Defence Establishments. Hatcheries, Poultry Farm, Museum, floriculture, Green House, Bio Technical Laboratory, Hybrid Seeds processing Units, Stone Crushers, Stone cutting, Bakery Product Manufacturing Units, Mysore Palace illumination, Film Studios, Dubbing Theatres, Processing, Printing, Developing and Recording Theaters, Tissue Culture, Aqua Culture, Prawn Culture, Information Technology Industries engaged in development of Hardware & Software, Information Technology (IT) enabled services / start-ups (As defined in GOI notification dated 17.04.2015) / Animation / Gaming / Computer Graphics as certified by the IT & BT

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

Department of GOK/GOI, Drug Mfg. Units, Garment Mfg. Units, Tyre retreading units, Hospitals run by Charitable Institutions & ESI Hospitals, Nuclear Power Projects, Stadiums maintained by Government and local bodies, also Railway Traction, Effluent treatment plants and Drainage water treatment plants owned other than by the local bodies, LPG bottling plants, petroleum pipeline projects, Piggery farms, Analytical Lab. for analysis of ore metals, Saw Mills, Toy/wood industries, Satellite communication centers, and Mineral water processing plants / drinking water bottling plants.

RATE SCHEDULE

.Demand charges Rs.400/kVA of billing demand/month Energy charges For the first one lakh units 560 paise per unit For the balance units 580 paise per unit Railway Traction and Effluent Treatment Plants

Demand charges Rs.400/kVA of billing demand/month Energy Charges 660 paise per unit for all the units ` 9.1.4 TARIFF SCHEDULE HT-2(b): Applicable to Commercial Complexes, Cinemas, Hotels, Boarding & Lodging, Amusement Parks, Telephone Exchanges, Private Hospitals & Nursing Homes, Race Course, All Clubs, T.V. Station, All India Radio, Railway Stations, Air Port, KSRTC bus stations, All offices, Banks, Commercial Multi-storied buildings, Private

APMC Yards, Stadiums other than those maintained by Government and Local Bodies, Construction power for industries, irrigation, Power Projects and Konkan Railway Project, Petrol / Diesel and Oil storage plants, I.T. based medical transcription centers, telecom, call centers, BPO/KPO, Diagnostic centers, concrete mixture (Ready Mix Concrete) units.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

RATE SCHEDULE ( HT-2 b)

Demand charges Rs.400 /kVA of billing demand/month Energy charges For the first two lakh units 850 paise per unit For the balance units 900 paise per unit

9.1.5 TARIFF SCHEDULE HT-2(c)(i): Applicable to Government Hospitals and Hospitals run by Charitable Institutions, ESI hospitals, Universities and Educational Institutions belonging to Government, Local bodies, Aided Educational Institutions and Hostels of all Educational Institutions.

RATE SCHEDULE ( HT-2 (c)(i))

Demand charges Rs. 400 /kVA of billing demand/month Energy charges For the first one lakh units 740 paise per unit For the balance units 780 paise per unit

9.1.5 TARIFF SCHEDULE HT-2(c)(ii): Applicable to Hospitals and Educational Institutions other than those covered under HT-2(c)(i).

RATE SCHEDULE ( HT-2 (c)(ii))

Demand charges Rs.400 /kVA of billing demand/month Energy charges For the first one lakh units 840 paise per unit For the balance units 880 paise per unit

Note: Applicable to HT-2 (a), HT-2(b) & HT-2 (c) Tariff Schedule

1. Energy supplied may be utilized for all purposes associated with the working of the installation such as offices, stores, canteens, yard lighting, water pumping and advertisement within the premises. 2. Energy can be used for construction, modification and expansion purposes within the premises. 3. In respect of the industries availing HT power supply under HT-2a tariff schedule, the supply availed for Effluent Treatment Plant situated within the premises by fixing the separate sub-meter, a rebate of 50 paise per unit of electricity consumed by such Effluent Treatment plant shall be given to the applicable tariff schedule. No reduction in the recorded demand of the main HT supply is allowed. 90

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

TOD Tariff applicable to HT 2(a) and HT2(b) category. Time of Day Increase + / reduction (-) in energy charges over the normal tariff applicable 06.00 Hrs to 10.00 Hrs (+) 100 paise per unit 10.00 Hrs to 18.00 Hrs 0 18.00 Hrs to 22.00 Hrs (+) 100 paise per unit 22.00 Hrs to 06.00 Hrs (-) 100 paise per unit

9.1.5 TARIFF SCHEDULE HT-3a: Applicable to Lift irrigation Schemes/ Lift irrigation societies.

9.1.5.1 TARIFF SCHEDULE HT-3a(i): Applicable to LI schemes under Government Departments/ Government owned Corporations

RATE SCHEDULE (HT-3a(i)) Energy charges / Minimum 325 paise per unit subject to an annual Charges minimum of Rs.1480 per HP/Annum

9.1.5.2 TARIFF SCHEDULE HT-3a(ii): Applicable to Private LI schemes and Lift Irrigation societies: Connected to Urban/Express feeders

RATE SCHEDULE (HT-3a(ii)) Fixed Charges Rs.70 /HP/PM of sanctioned load Energy charges 325 paise/unit

9.1.5.3 TARIFF SCHEDULE HT-3a(iii): Applicable to Private LI schemes and Lift Irrigation societies other than those covered under HT-3 (a)(ii)

RATE SCHEDULE (HT-3a(iii)) Fixed Charges Rs.50 /HP/PM of sanctioned load Energy charges 325 paise/unit

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

9.1.6 TARIFF SCHEDULE HT-3b: Applicable to Irrigation and Agricultural Farms, Government Horticultural Farms, Private Horticulture nurseries, Coffee, Tea, Coconut & Arecanut Plantations.

RATE SCHEDULE (HT-3b) Energy charges / Minimum 525 Ps. Per unit subject to an annual Charges minimum of Rs.1480/- per HP of sanctioned load.

Note: These installations are to be billed on quarter yearly basis.

9.1.7 TARIFF SCHEDULE HT-4: Applicable to Residential apartments and colonies (whether situated outside or inside the premises of the main HT Installation) availing power supply independently or by tapping the main H.T. line. Power supply can be used for residences, theatres, shopping facility, club, hospital, guest house, yard/street lighting, canteen located within the colony.

RATE SCHEDULE (HT-4) Demand charges Rs.200/- per kVA of billing demand Energy charges 670 paise/unit

NOTE: (1) In respect of residential colonies availing power supply by tapping the main H.T. supply, the energy consumed by such colony loads metered at a single point, is to be billed at the above energy rate. No reduction in the recorded demand of the main H.T. supply is allowed.

(2) Energy under this tariff may be used for commercial and other purposes inside the colonies for installations such as, Canteens, Clubs, Shops, Auditorium etc., provided, this commercial load is less than 10% of the Contract demand.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

(3) In respect of Residential Apartments, availing HT Power supply under HT-4 tariff schedule, the supply availed for Commercial and other purposes like Shops, Hotels, etc., will be billed under appropriate tariff schedule (Only Energy charges), duly deducting such consumption in the main HT supply bill. No reduction in the recorded demand of the main HT meter is allowed. Common areas shall be billed at Tariff applicable to the predominant Consumer category.

9.1.8 TARIFF SCHEDULE HT-5: Temporary tariff applicable to 67 HP and above for hoardings and advertisement boards and construction power for industries excluding those category of consumers covered under HT2(b) tariff schedule availing power supply for construction power for irrigation, power projects and Konkan railway projects and also applicable to power supply availed on temporary basis with the contract demand of 67 HP and above of all categories.

RATE SCHEDULE (HT-5) 67 HP and above: Fixed charges / Rs.400/HP/month for the entire sanction load / Demand Charges contract demand Energy Charge 1100 paise / unit

2. This Tariff is also applicable to touring cinemas having licence for duration less than one year.

3. All the conditions regarding temporary power supply as stipulated in Clause 12 the Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka shall be complied with before service.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

9.2 PART-2: Proposed Electric Power Tariff for Low Tension Supply: Applicable to 400 Volts Three Phase and 230Volts Single Phase Supply

9.2.1 CONDITIONS APPLICABLE TO BILLING OF LT INSTALLATIONS:

1. In case of LT Industrial / commercial Consumers, Demand based Tariff at the option of the Consumer, can be adopted. The Consumer is permitted to have more connected load than the sanctioned load. The billing demand will be the sanctioned load, or Maximum Demand recorded in the Tri-Vector Meter during the month, which ever is higher. If the Maximum Demand recorded is more than the sanctioned load, penal charges at two times the normal rate shall apply.

2. Use of power within the Consumer premises for bonafide temporary purpose is permitted subject to the conditions that, total load of the installation on the system does not exceed the sanctioned load.

3. Where it is intended to use power supply temporarily, for floor polishing and such other portable equipments, in a premises having permanent power supply, such equipments shall be provided with earth leakage circuit breakers of adequate capacity.

4. The laboratory installations in educational institutions are allowed to install connected machineries up to 4 times the sanctioned load. The fixed charges shall however be on the basis of sanctioned load.

5. Besides combined lighting and heating, electricity supply under tariff schedules LT2 (a) & LT2 (b), can be used for Fans, Televisions, Radios, Refrigerators and other household appliances, including domestic water pumps and air conditioners, provided, they are under single meter connection. If a separate meter is provided for Air-conditioner load, the Consumer shall be served with a notice to merge this load and to have a single meter for the entire load. Till such time, the air conditioner load will be billed under Commercial Tariff.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

6. Bulk LT supply: If power supply for lighting / combined lighting & heating {LT 2(a)}, is availed through a bulk Meter for group of houses belonging to one Consumer, (ie, Where bulk LT supply is availed), the billing for energy shall be done at the slab rate for energy charges matching the consumption obtained by dividing the bulk consumption by number of houses. In addition, fixed charges for the entire sanctioned load shall be charged as per Tariff schedule.

7. A rebate of 25 Paise per unit will be given for the House/ School/Hostels meant for Handicapped, Aged, Destitute and Orphans, Rehabilitation Centres under Tariff schedule LT 2(a).

8. SOLAR REBATE: A rebate of 50 Paise per unit of electricity consumed subject to a maximum of Rs. 50/- per installation per month will be allowed to Tariff schedule LT 2(a), if solar water heaters are installed and used. Where Bulk Solar Water Heater System is installed, Solar Water Heater rebate shall be allowed to each of the individual installations, provided that, the capacity of Solar Water Heater in such apartment / group housing shall be a minimum capacity of 100 Ltr. per household.

9. A rebate of 20% on fixed charges and energy charges will be allowed in the monthly bill in respect of public Telephone booths having STD/ISD/ FAX facility run by handicapped people, under Tariff schedule LT 3.

10. A rebate of 2 paise per unit will be allowed if capacitors are installed as per Clause 23 of Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka in respect of all metered IP Set Installations.

11. Power Factor (PF): Capacitors of appropriate capacity shall be installed in accordance with Clause 23 of Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka, in case of installations covered under Tariff category LT 3, LT4, LT 5, & LT 6, where motive power is involved.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

(i) The specified P.F. is 0.85. If the PF is found to be less than 0.85 Lag, a surcharge of 2 Paise per unit consumed will be levied for every reduction of P.F. by 0.01 below 0.85 Lag. In respect of LT installations, however, this is subject to a maximum surcharge of 30 Paise per unit. (ii) The power factor when computed as the ratio of KWh/KVAh will be determined up to 3 decimals (ignoring figures in the other decimal places) and then rounded off to the nearest second decimal as illustrated below: a. 0.8449 to be rounded off to 0.84 b. 0.8451 to be rounded off to 0.85

(iii) In respect of Electronic Tri-Vector meters, the recorded average PF over the billing period shall be considered for billing purposes.

(iv) During inspection, if the capacity of capacitors provided is found to be less than what is stipulated in Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka, a surcharge of 30 Paise/unit will be levied in the case of installations covered under Tariff categories LT 3, LT 5, & LT 6 where motive power is involved.

(v) In the case of installations without electronic Tri-vector meters even after providing capacitors as recommended in Clause 23.01 and 23.03 of Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka, if during any periodical or other testing / rating of the installation by the Licensee, the PF of the installation is found to be lesser than 0.85, a surcharge determined as above shall be levied from the billing month following the expiry of Three months‟ notice given by the Licensee, till such time, the additional capacitors are installed and informed to the Licensee in writing by the Consumer. This is also applicable for LT installations provided with electronic Tri-vector meters.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

12. All new IP set applicants shall fix capacitors of adequate capacity in accordance with Clause 23 of Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka before taking service.

13. All the existing IP set Consumers shall also fix capacitors of adequate capacity in accordance with Clause 23 of Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka, failing which, PF surcharge at the rate of Rs.60/-per HP/ year shall be levied. If the capacitors are found to be removed / not installed, a penalty at the same rate as above (Rs. 60/-per HP / Year) shall be levied.

14. The Semi-permanent cinemas having Semi-permanent structure, with permanent wiring and licence of not less than one year, will be billed under commercial tariff schedule i.e., LT 3.

15. Touring cinemas having an outfit comprising cinema apparatus and accessories, taken from place to place for exhibition of cinematography films, and also outdoor shooting units, will be billed under Temporary Tariff schedule i.e., LT 7.

16. The Consumers under IP set tariff schedule, shall use the energy only for pumping water to irrigate their own land as stated in the IP set application / water right certificate and for bonafide agriculture use. Otherwise, such installations shall be billed under appropriate Industrial / Commercial tariff, based on the recorded consumption if available, or on the consumption computed as per the Table given under Clause 42.06 of the Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka.

17. The water pumped for agricultural purposes may also be used by the Consumer for his bonafide drinking purposes and for supplying water to animals, birds, Poultry farms, Diary farms and fish farms maintained by the Consumer in addition to agriculture.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

18. The motor of IP set installations can be used with an alternative drive for other agricultural operations like sugar cane crusher, coffee pulping, arecanut cutting, etc., with the approval of the Licensee. The energy used for such operation, shall be metered separately by providing alternate switch and charged at LT Industrial Tariff (Only Energy charges) during the period of alternative use. However, if the energy used both for IP Set and alternate operation is measured together by one energy meter, the energy used for alternate drive shall be estimated by deducting the average IP Set consumption for that month as per the IP sample meter readings for the sub division, as certified by the sub divisional Officer.

19. The IP Consumer is permitted to use energy for lighting the pump house and well limited to two lighting points of 40 Watts each.

20. Billing shall be made at least once in a quarter year for all IP sets.

21. In case of welding transformers, the connected load shall be taken as:

(a) Half the maximum capacity in KVA as per the nameplate specified under IS: 1851 OR (b) Half the maximum capacity in KVA as recorded during the rating by the Licensee, whichever is higher.

22. Electricity under Tariff LT 3 / LT 5 can also be used for Lighting, Heating and Air-conditioning, Yard-Lighting, water supply in the premises of Commercial / Industrial Units respectively. 23. Fluorescent fittings shall be provided by the Licensee for the Streetlights in the case of villages covered under the Licensee‟s electrification programme for initial installation.

In all other cases, the entire cost of fittings including Brackets, Clamps, etc., and labour for replacement, additions and modifications shall be met by the organizations making such a request. Labour charges shall be paid at the standard rates fixed by the Licensee for each type of fitting.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

24. Lamps, fittings and replacements for defective components of fittings shall be supplied by the concerned Village Panchayaths, Town Panchayaths or Municipalities for replacement.

25. Fraction of KW / HP shall be rounded off to the nearest quarter KW / HP for purpose of billing and the minimum billing being for 1 KW / 1HP in respect of all categories of LT installations including I.P. sets. In the case of street lighting installations, fraction of KW shall be rounded off to nearest quarter KW for the purpose of billing and the minimum billing shall be quarter KW.

26. Seasonal Industries: (a) The industries who intend to utilize seasonal industry benefit, shall comply with the conditionalities under Para no. 25 of the General terms and conditions of tariff (applicable to both HT & LT). (b) The industries that intend to avail this benefit, shall have Electronic Tri-Vector Meter fitted to their installation. (c) Monthly charges during the seasonal months shall be fixed charges and energy charges. The monthly charges during the off seasonal months, shall be the energy charges plus 50% of the fixed charges.

MESCOM: ERC & Tariff Petition for FY-18: Ch.9-Tariff Schedule

9.2.2 TARIFF SCHEDULE LT-1: Applicable to installations serviced under Bhagyajyothi and Kutirajyothi (BJ/KJ) schemes. RATE SCHEDULE (LT-1) Energy charges Nil* (including recovery towards service Fully subsidized by the GOK main charges) Tariff for the above category i.e. LT-1 is Rs.7.58 per unit. * Since GOK is meeting the full cost of supply to BJ / KJ, the Tariff payable by these Consumers is shown as Nil. However, if the GOK does not release the subsidy in advance, a Tariff of Rs.7.58 per unit subject to monthly minimum of Rs. 50/- per Installation per month shall be demanded and collected from these Consumers. Note: If the consumption exceeds 18 units per month or any BJ/KJ installation is found to have more than one out let, it shall be billed as per Tariff Schedule LT 2(a).

9.2.3 TARIFF SCHEDULE LT-2a: Applicable to lighting/combined lighting, heating and motive Power installations of residential houses and also to such houses where a portion is used by the occupant for (a) Handloom weaving (b) Silk rearing and reeling and artisans using motors up to 200 watts (c) Consultancy in (i) Engineering (ii) Architecture (iii) Medicine (iv) Astrology (v) Legal matters (vi) Income tax (vii) Chartered Accountants (d) Job typing (e) Tailoring (f) Post Office (g) Gold smithy (h) Chawki rearing (i) Paying guests/Home stay guests (j) personal Computers (k) Dhobis (l) Hand operated printing press (m) Beauty Parlours (n) Water Supply installations, Lift which is independently serviced for bonafide use of residential complexes/residence, (o) Farm Houses and yard lighting limiting to 120 Watts.

Also applicable to the installations of (i) Hospitals, Dispensaries, Health Centers run by State/Central Govt. and local bodies. (ii) Houses, schools and Hostels meant for handicapped, aged destitute and orphans (iii) Rehabilitation Centres run by charitable institutions, AIDS and drug addicts Rehabilitation Centres (iv) Railway staff Quarters with single meter (v) fire service stations.

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It is also applicable to the installations of (a) Temples, Mosques, Churches, Gurudwaras, Ashrams, Mutts and religious/Charitable institutions (b) Hospitals, Dispensaries and Health Centres run by Charitable institutions including X-ray units (c) Jails and Prisons (d) Schools, Colleges, Educational institutions run by State/Central Govt.,/Local Bodies (e) Seminaries (f) Hostels run by the Government, Educational Institutions, Cultural, Scientific and Charitable Institutions (g) Guest Houses/Travelers Bungalows run in Government buildings or by State/Central Govt./Religious/Charitable institutions (h) Public libraries (i) Silk rearing (j) Museums (k) Installations of Historical Monuments of Archeology Departments(l) Public Telephone Booths without STD/ISD/FAX facility run by handicapped people (m) Sulabh / Nirmal Souchalayas (n) Viswa Sheds having Lighting Loads only.

9.2.3.1 TARIFF SCHEDULE LT-2a(i): Applicable to areas coming under City Municipal Corporations and all areas under Urban Local Bodies.

RATE SCHEDULE (LT-2a(i)) Fixed charges per month For the first KW Rs.70/- per KW For every additional KW Rs.80/- per KW Energy charges For 0 - 30 units (Lifeline consumption) 365 ps /unit 31 to 100 units 520 ps /unit 101 to 200 units 700 ps /unit Above 200 units 830 ps /unit

9.2.3.2 TARIFF SCHEDULE LT-2a(ii): Applicable to Areas under Village Panchayats.

RATE SCHEDULE (LT-2a(ii)) Fixed charges per month For the first KW Rs.55/- per KW For every additional KW Rs.70/- per KW Energy charges For 0 - 30 units (Lifeline consumption) 355 ps/unit 31 to 100 units 490 ps/unit 101 to 200 units 670 ps/unit Above 200 units 780 ps/unit

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9.2.4 TARIFF SCHEDULE LT-2b: Applicable to the installations of Private Professional and other private educational institutions including aided, unaided institutions having only lighting or combined lighting & heating, and motive power.

9.2.4.1 TARIFF SCHEDULE LT-2b(i): Applicable to all areas coming under Urban Local Bodies including City Corporations.

RATE SCHEDULE (LT-2b(i)) Fixed charges Rs.75 Per KW subject to a minimum of Rs.105 PM Energy charges 0 to 200 units 750 Ps/unit

Above 200 units 875 Ps/unit

9.2.4.2 TARIFF SCHEDULE LT-2b(ii): Applicable in Areas under Village Panchayats.

RATE SCHEDULE (LT-2b(ii)) Fixed charges Rs.65 Per KW subject to a minimum of Rs.90 PM Energy charges 0 to 200 units 695 Ps/unit

Above 200 units 820 Ps/unit

Note: Applicable to LT-2 (a), LT-2 (b) Tariff Schedules. 1. A rebate of 25 Ps. Per unit shall be given for installation of a house/ School/ Hostels meant for Handicapped, Aged, Destitute and Orphans, Rehabilitation Centres run by Charitable Institutions.

2. (a) Use of power within the Consumer‟s premises for temporary purposes for bonafide use is permitted subject to the condition that, the total load of the installation on the system does not exceed the sanctioned load.

(b) Where it is intended to use floor polishing and such other portable equipment temporarily, in the premises having permanent supply, such equipment shall be provided with an earth leakage circuit breaker of adequate capacity.

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3. The laboratory installations in educational institutions are allowed to install connected machinery up to 4 times the sanctioned load. The fixed charges shall however be on the basis of sanctioned load.

4. Besides lighting and heating, Electricity supply under this schedule can be used for fans, Televisions, Radios, Refrigerators and other house-hold appliances including domestic water pump and air conditioners, provided, they are under single meter connection. If a separate meter is provided for Air conditioner Load, the consumption shall be under commercial tariff till it is merged with the main meter.

5. SOLAR REBATE: A rebate of 50 Paise per unit of electricity consumed to a maximum of Rs.50/- per installation per month will be allowed to Tariff schedule LT 2(a), if solar water heaters are installed and used. Where Bulk Solar Water Heater System is installed, Solar Water Heater rebate shall be allowed to each of the individual installations, provided that, the capacity of Solar Water Heater in such apartment / group housing shall be a minimum capacity of 100 Ltr, per household.

9.2.5 TARIFF SCHEDULE LT-3: Applicable to Commercial Lighting, Heating and Motive Power installations of Clinics, Diagnostic Centers, X Ray units, Shops, Stores, Hotels/Restaurants/Boarding and Lodging Homes, Bars, Private guest Houses, Mess, Clubs, Kalyan Mantaps / Choultry, permanent Cinemas/ Semi Permanent Cinemas, Theatres, Petrol Bunks, Petrol, Diesel and oil Storage Plants, Service Stations/ Garages, Banks, Telephone Exchanges. T.V.Stations, Microwave Stations, All India Radio, Dish Antenna, Public Telephone Booths/ STD, ISD, FAX Communication Centers, Stud Farms, Race Course, Ice Cream Parlours, Computer Centres, Photo Studio / colour Laboratory, Xerox Copiers, Railway Installation excepting Railway workshop, KSRTC Bus Stations excepting Workshop, All offices, Police Stations, Commercial Complexes, Lifts of Commercial Complexes, Battery Charging units, Tyre Vulcanizing Centres, Post Offices, Bakery shops, Tailoring Shops, Beauty

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Parlours, Stadiums other than those maintained by Govt. and Local Bodies, Private Advertising Posts / Sign boards in the interest of Public such as Police Canopy Direction boards, and other sign boards sponsored by the Private Advertising Agencies. It is also applicable to water supply pumps and street lights not covered under LT 6, Cyber cafés, Internet surfing cafés, Call centers, Bus Shelters with Advertising boards, Information Technology (IT) enabled services, I.T. based medical transcription centers, Private Hostels not covered under LT -2 (a), Paying guests accommodation provided in an independent / exclusive premises, concrete mixtures (Ready Mix Concrete) units.

9.2.5.1 TARIFF SCHEDULE LT-3(i): Applicable to all areas coming under Urban Local Bodies including City Corporations.

RATE SCHEDULE (LT-3(i)) Fixed charges Rs. 80 per KW Energy charges For 0 - 50 units 800 Ps /unit Above 50 units 900 Ps /unit

Demand based tariff (optional) where sanctioned load is above 5 KW but below 50 KW Fixed charges Rs.95 per KW Energy charges As above

9.2.5.2 TARIFF SCHEDULE LT-3(ii): Applicable in Areas under Village Panchayats.

RATE SCHEDULE (LT-3(ii)) Fixed charges Rs. 70 per KW Energy charges For 0 - 50 units 750 Ps /unit Above 50 units 850 Ps /unit

Demand based tariff (optional) where sanctioned load is above 5 KW but below 50 KW Fixed charges Rs. 85 per KW Energy charges As above

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Note: 1. Besides Lighting, Heating and Motive power, Electricity supply under this Tariff can also be used for Yard lighting/ air Conditioning/water supply in the premises. 2. The semi permanent Cinemas should have semi Permanent Structure with permanent wiring and licence for a duration of not less than one year. 3. Touring Cinemas having an outfit comprising Cinema apparatus and accessories taken from place to place for exhibition of cinematography film and also outdoor shooting units shall be billed under LT- 7 Tariff. 4. A rebate of 20% on fixed charges and energy charges shall be allowed in the monthly bill in respect of telephone Booths having STD / ISD/FAX facility run by handicapped people. 5. Demand based Tariff at the option of the Consumer can be adopted as per Para 1 of the conditions applicable to LT installations.

9.2.6 TARIFF SCHEDULE LT-4a, LT-4b and Lt-4c: Applicable to (a) Agricultural Pump Sets including Sprinklers (b) Pump sets used in (i) Nurseries of forest and Horticultural Departments (ii) Grass Farms and Gardens (iii) Plantations other than Coffee, Tea and Private Horticulture Nurseries.

9.2.6.1 TARIFF SCHEDULE LT-4a: Applicable to I.P. Sets Up to and inclusive of 10 HP.

RATE SCHEDULE (LT-4a) Fixed charges Free* Energy charges Commission Determined Tariff (CDT) for LT4 (a) category is 685 Paise per unit. In case the GOK does not release the subsidy in advance in the manner specified by the Commission in K.E.R.C. (Manner of Payment of subsidy) Regulations, 2008, CDT of 621 Paise per unit shall be demanded and collected from these Consumers.

Note: This Tariff is applicable for Coconut and Areca nut plantations also.

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9.2.6.2 TARIFF SCHEDULE LT-4b: Applicable to IP sets above 10 HP.

RATE SCHEDULE (LT-4b) Fixed charges Rs.70 per HP per month. Energy charges 350 paise per unit

9.2.6.3 TARIFF SCHEDULE LT-4c(i): Applicable to Private Horticultural Nurseries, Coffee and Tea plantations of sanctioned load of 10 HP & below.

RATE SCHEDULE (LT-4c(i)) Fixed charges Rs.60 per HP per month. Energy charges 350 paise per unit

9.2.6.4 TARIFF SCHEDULE LT-4c(ii): Applicable to Private Horticultural Nurseries, Coffee and Tea plantations of sanctioned load above 10 HP.

RATE SCHEDULE (LT-4c(ii)) Fixed charges Rs.70 per HP per month. Energy charges 350 paise per unit

Note: 1) The energy supplied under this tariff shall be used by the Consumers only for Pumping water to irrigate their own land as stated in the I.P. Set application / water right certificate and for bonafide agriculture use. Otherwise, such installations shall be billed under the appropriate Tariff (LT-3/ LT-5) based on the recorded consumption if available, or on the consumption computed as per the Table given under Clause 42.06 of the Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka.

2) The motor of IP set installations can be used with an alternative drive for other agricultural operations like sugar cane crusher, coffee pulping, arecanut cutting, etc., with the approval of the Licensee. The energy used for such operation shall be metered separately by providing alternate switch and charged at LT Industrial Tariff (Only Energy charges) during the period of alternative use. If the energy used both for IP Set and alternate operation, is however measured together by one energy meter, the energy used for alternate drive shall be estimated by deducting the average IP Set consumption for that month as per the IP sample meter readings for the sub division as certified by the sub divisional Officer.

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3) The Consumer is permitted to use the energy for lighting the pump house and well limited to 2 lighting points of 40 W each.

4) The water pumped for agricultural purposes may also be used by the Consumer for his bonafide drinking purposes and for supplying water to animals, birds, Poultry farms, Diary farms and fish farms maintained by the Consumer in addition to agriculture.

5) Billing shall be made at least once in a quarter year for all IP sets.

6) A rebate of 2 paise per unit will be allowed if capacitors are installed as per Clause 23 of Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka in respect of all metered IP Set Installations.

7) Only fixed charges as in Tariff Schedule for Metered IP Set Installations shall be collected during the disconnection period of IP Sets under LT 4(a), LT 4(b) and LT 4(c) categories irrespective of whether the IP Sets are provided with Meters or not.

9.2.7 TARIFF SCHEDULE LT-5: Applicable to Heating & Motive power (including lighting) installations of industrial Units, Workshops, Poultry Farms, Sugarcane Crushers, Coffee Pulping, Cardamom drying, Mushroom raising installations, Flour, Huller & Rice Mills, Wet Grinders, Milk dairies, Dry Cleaners and Laundries having washing, Drying, Ironing etc., Bulk Ice Cream and Ice manufacturing Units, Coffee Roasting and Grinding Works, Cold Storage Plants, Bakery Product Mfg. Units, KSRTC workshops/Depots, Railway workshops, Drug manufacturing units and Testing laboratories, Printing Presses, Garment manufacturing units, Bulk Milk vending Booths, Swimming Pools of local Bodies, Tyre retreading units, Stone crushers, Stone cutting, Chilly Grinders, Phova Mills, pulverizing Mills, Decorticators, Iron & Red-Oxide crushing units, crematoriums, hatcheries, Tissue culture, Saw Mills, Toy/wood industries, Viswa Sheds with mixed load sanctioned under Viswa Scheme, Cinematic activities such as Processing, Printing, Developing, Recording theatres, Dubbing Theatres and film studios, Agarbathi manufacturing unit., Water supply installations of KIADB & industrial units, Gem & Diamond cutting Units, Floriculture, Green House, Biotech Labs., Hybrid seed processing units. Information Technology industries engaged in development of hardware & Software, Information Technology (IT) enabled services / start-ups (As defined in GOI notification dated 17.04.2015) / Animation / Gaming / Computer Graphics as certified by the IT & BT Department of GOK/GOI, Silk filature units, Aqua Culture,

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Prawn Culture, Brick manufacturing units, Silk / Cotton colour dying, Stadiums maintained by Govt. and local bodies, Fire service stations, Gold / Silver ornament manufacturing units, Effluent treatment plants, Drainage water treatment plants, LPG bottling plants and petroleum pipeline projects, Piggery farms, Analytical Lab. for analysis of ore metals, Satellite communication centers, Mineral water processing plants / drinking water bottling plants and soda fountain units.

LT-5 (a): Applicable to areas under Municipal Corporations.

Fixed i) Rs.60 per HP for 5 HP & below charges ii) Rs.65 per HP for above 5 HP & below 40 HP iii) Rs.80 per HP for 40 HP & above but below 67 HP iv) Rs.140 per HP for 67 HP & above

Demand based Tariff (optional) Fixed Above 5 HP and less than 40 HP Rs.80 per KW of billing demand charges 40 HP and above but less than 67 Rs.105 per KW of billing HP demand 67 HP and above Rs.190 per KW of billing demand

Energy 0 to 500 units 560 ps /unit Charges 501 to 1000 units 655 ps /unit Above 1000 units 685 ps /unit

LT-5 (b): Applicable to all areas other than those covered under LT-5(a)

Fixed i) Rs.55 per HP for 5 HP & below charges ii) Rs.60 per HP for above 5 HP & below 40 HP iii) Rs.75 per HP for 40 HP & above but below 67 HP iv) Rs.130 per HP for 67 HP & above

Demand based Tariff (optional) Fixed Above 5 HP and less than 40 HP Rs.75 per KW of billing demand charges 40 HP and above but less than 67 Rs.100 per KW of billing HP demand 67 HP and above Rs.180 per KW of billing demand

Energy 0 to 500 units 550 ps/unit Charges 501 to 1000 units 640 ps/unit Above 1000 units 670 ps/unit

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TOD Tariff applicable to LT-5: At the option of the Consumer Time of Day Increase + / reduction (-) in energy charges over the normal tariff applicable 06.00 Hrs to 10.00 Hrs (+) 100 paise per unit 10.00 Hrs to 18.00 Hrs 0 18.00 Hrs to 22.00 Hrs (+) 100 paise per unit 22.00 Hrs to 06.00 Hrs (-) 100 paise per unit

NOTE: 1. DEMAND BASED TARIFF: In the case of LT Industrial Consumers, Demand based Tariff at the option of the Consumer can be adopted. The Consumer is permitted to have more connected load than the sanctioned load. The billing demand will be the sanctioned load or Maximum Demand recorded in the Tri-Vector Meter during the month which ever is higher. If the Maximum Demand recorded is more than the sanctioned load, penal charges at two times the normal rate shall apply. 2. Seasonal Industries: The industries which intend to utilize seasonal industry benefit shall comply with the conditionalities under para no. 26 of general terms and conditions applicable to LT. 3. Electricity can also be used for lighting, heating, and air-conditioning in the premises. 4. In the case of welding transformers, the connected load shall be taken as (a) Half the maximum capacity in KVA as per the name plate specified under-IS1851 or (b) Half the maximum capacity in KVA as recorded during rating by the Licensee, whichever is higher.

9.2.8 TARIFF SCHEDULE LT-6: Applicable to water supply and sewerage pumping installations and also Applicable to water purying plants maintained by Government and Urban Local Bodies / Grama Panchayats for supply pure drinking water to residential areas. Public Street lights/Park lights of village Panchayat, Town Panchayat, Town Municipalities, City Municipalities / Corporations / State and Central Govt. / APMC, Traffic signals, Surveillance Cameras at traffic locations belonging to Government Department., subways, water fountains of local bodies. Also applicable to Streetlights of residential Campus of universities, other educational institutions, housing colonies approved by local bodies/development authority, religious institutions, organizations run on charitable basis, industrial area / estate and notified areas, also Applicable to water supply installations in residential Layouts, Street lights along with signal lights and associated load of the gateman hut provided at the Railway level crossing High Mast street lights, Lifts/Escalators installed in pedestrian road crossing maintained by Government and Urban local bodies / Grama Panchayats independently serviced.

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RATE SCHEDULE (LT-6) Water Supply- LT-6 (a) Fixed charges Rs. 75/HP/month Energy charges 550 Ps/unit Public lighting- LT-6 (b) Fixed charges Rs.90/KW/month Energy charges 710 Ps/unit LED Lighting 610 Ps/unit

9.2.9 TARIFF SCHEDULE LT-7: Temporary Supply and Permanent Supply to Advertising Hoardings

LT-7(a): RATE SCHEDULE Applicable to Temporary Power Supply for all purposes.

Energy charge at 1100 Ps/unit, subject to a Less than 67 HP: weekly minimum of Rs.210 per KW of the

sanctioned load.

LT-7(b): RATE SCHEDULE Applicable to Hoardings & Advertisement boards, Bus Shelters with Advertising Boards, Private Advertising Posts / Sign boards in the interest of Public such as Police Canopy Direction boards, and other sign boards sponsored by Private Advertising Agencies / firms on permanent connection basis.

Less than 67 HP: Fixed charges at Rs.80 per KW / month. Energy charges at 11100 Ps/unit.

Note: 1. Temporary power supply with or without extension of distribution main shall be arranged through a pre–paid energy meter duly observing the provisions of Clause 12 of the Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka. 2. This Tariff is also applicable to touring cinemas having licence for duration less than one year. 3. All the conditions regarding temporary power supply as stipulated in Clause 12 the Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka shall be complied with before service. :-:-:-:-:

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MESCOM: ARR / ERC & Tariff Petition for Fy-19: Ch.10-New Proposals

CHAPTER-10

NEW PROPOSALS

1. Simplification of Tariff Structure; GOK has constituted a committee for exploring the means for simplification of existing consumer tariff structure vide Order No.EN70PSR2017 dated 04-09-2017 with the Director (Finance), BESCOM as the Chairman of the Committee. Meanwhile, Hon’ble Commission has circulated a paper regarding “Rationalization of Tariff Structure in Karnataka” vide letter dated 04-09-2017. The Committee has finalized its recommendations considering the new proposed tariff structure by Hon’ble Commission.

Copy of the report submitted to GOK by the Chairman of the Committee is enclosed herewith as Annexure-7 for kind consideration of the Hon’ble Commission.

2. Increasing Billing Demand in respect of HT installations: It is to be submitted before the Hon’ble Commission that in UGVCL of Gujarath Billing Demand is being reckoned as follows; Billing Demand shall be highest of the following; (a) Eighty Five percent of the Contract Demand. (b) Actual Demand registered during the month. (c) 15KW

Hence, the Hon’ble Commission is requested to approve to adopt Billing Demand @ 85% of the contracted demand or recorded demand whichever is higher, in line with the regulations being followed in UGVCL.

3. Special Incentive Scheme: MESCOM is hereby submitting a Special Incentive Scheme proposal for HT-2a, HT-2b (excluding railway traction & effluent treatment plants) and HT-2c category of installations. This scheme is intended to encourage more consumption from the MESCOM grid rather than going for wheeling / open access arrangements. From this scheme MESCOM is expecting a considerable additional consumption under the categories compared to the position in FY-17.

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Working modalities of the scheme are as below; i. The rate applicable for eligible consumption under the scheme is equal to the rate of 1st Slab consumption charges under the respective categories.

ii. Eligibility: The consumption over and above the base consumption fixed for a month is eligible for tariff under the scheme. The base period is defined as the past 12 month's consumption. The base consumption shall be the average of monthly-billed energy supplied by MESCOM during the base period. Energy consumed under special scheme if any, during the base period shall not be accounted for arriving at base consumption.

iii. The base consumption shall be computed on the average of 12 months' consumption excluding wheeled energy for the period from Jan 2016 to December 2016.

iv. After opting to the scheme, if there is a permanent increase in the contract demand in these installations, the base consumption shall be increased by 100 units per KVA of the additional CD availed by the industry on permanent basis.

v. For new industries serviced after January 2017, the criteria for these industries to be eligible for this special scheme shall be a minimum period of six months.

vi. For new industries, which do not have 12 months' base consumption, the base consumption shall be computed on the actual consumption for the months in the base period plus the consumption computed at 100 per KVA per month for the remaining months of the base period.

vii. MESCOM will have flexibility in fixing base consumption.

viii. In order to avail the special scheme, 20% increase in contract demand shall be allowed to the availing consumers during the currency of the scheme which is optional to the consumers. Penalty for exceeding maximum demand for the consumers availing the scheme thus would be more than 120% of the sanctioned contract demand. The minimum billing demand shall also be enhanced accordingly.

ix. The scheme will continue till the end of the financial year. However, MESCOM would endeavor to continue the scheme with the approval of

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KERC for the ensuing year also with necessary modifications to the rate structure based on the tariff rates approved by KERC for the ensuing year.

x. Consumer under the HT incentive scheme can avail other incentive in force.

Hon’ble Commission is requested to approve the above detailed Special Incentive Scheme.

4. Cross Subsidy Surcharge for Wheeling of Solar Energy: The Cross Subsidy Surcharge calculated by KERC and recovered from Open Access consumers is often insufficient to recover the entire loss of cross subsidy. Added to this, no cross subsidy surcharge is applicable to open access/wheeling transactions from solar energy to encourage renewable energy. Further, Renewable Purchase Obligation targets are also fixed to ESCOMs and other installations to encourage solar energy.

As solar generation has increased significantly, it is submitted before the Hon’ble Commission to approve levy of Cross Subsidy Surcharge to Solar energy consumption through wheeling / open access also. :-:-:-:-:

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MESCOM: ARR / ERC & Tariff Petition for Fy-18: Ch.11-Prayer

CHAPTER-11

PRAYER

11.1 MESCOM with averments made in the respective Chapters of the present application duly detailing the revenue requirements and expected revenue from the existing tariff charges, respectfully prays the Hon’ble Commission to;

A. Consider the Annual Performance Review, including RPO compliance, for FY-17 as detailed in Chapter-4.

B. Consider the Sales Projections of MESCOM for FY-19 as detailed in Chapter-5.

C. Consider the projected Aggregate Annual Revenue Requirement for FY-19 as detailed in Chapter-6.

D. Consider the base for the proposed tariff increase detailed in the Chapter-8 and approve increase in fixed charges / demand charges & energy charges as proposed therein.

E. Consider the wheeling charges and cross subsidy surcharge as proposed in the Chapter-8.

F. Consider the NEW PROPOSALS proposed in the Chapter-10.

G. Condone any of errors, omissions and deletions in the petition and give a chance to provide any other necessary information as deemed fit by the Commission. :-:-:-:-:

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MESCOM Annexure-2 Status of Borrwings of MESCOM 31.3.17 Rs..in.crores] Loan availed Loan Loan Date of Loan Balances Interest amount during FY 16 Availed Term Present ROI Purpose of loan sanctioned sanction as on 31.3.17 upto 31.3.17 (upto March-17) upto 31.3.17 Long Term Loan 1 Syndicate Bank III/UBI II 40.00 40.00 40.00 19.02.09 1+7 years 8.65% 6.07 1.02 Capital Expenditure

2 Syndicate Bank IV/UBI III 100.00 100.00 100.00 30.03.11 1+7 years 8.65% 28.39 4.16 Capital Expenditure

3 Syndicate Bank V/UBI IV 100.00 100.00 100.00 23.09.14 1+7 years 8.65% 77.38 9.45 Capital Expenditure

4 Syndicate Bank VI/UBI V 26.00 26.00 26.00 23.12.14 40 months 8.65% 8.45 1.50 Capital Expenditure

5 Syndicate Bank VII/UBI VI 50.00 50.00 50.00 27.08.15 1 + 8 year 8.65% 45.83 5.01 Capital Expenditure

6 Corporation Bank II 100.00 100.00 100.00 09.05.08 1+7 years 8.65% 9.31 1.90 Capital Expenditure

7 Indian Bank/UBI VII 100.00 100.00 100.00 28.10.09 1+7 years 8.65% 9.37 1.48 Capital Expenditure

8 State Bank Of Mysore II 100.00 100.00 100.00 02.08.12 1+7 years 8.65% 47.34 6.33 Capital Expenditure

9 Canara Bank I 50.00 50.00 50.00 14.08.13 1+7 years 8.65% 31.56 3.70 Capital Expenditure

10 Canara Bank II 50.00 50.00 50.00 14.08.13 1+7 years 8.65% 34.53 4.01 Capital Expenditure

11 Canara Bank III 50.00 50.00 50.00 27.07.15 1+7 years 8.65% 46.43 5.04 Capital Expenditure

12 Canara Bank IV 50.00 30.00 30.00 22.09.16 1+7 years 9.75% 30.00 0.73 Capital Expenditure

13 Punjab & Sind Bank II 100.00 43.00 43.00 19.9.2016 1+7 years 9.70% 43.00 0.03 Capital Expenditure

14 Union Bank of India 100.00 75.00 80.00 07.06.16 1+7 years 9.85% 80.00 5.30 DTC metering & UNIP

15 REC APDRP 2.87 1.61 16.06.07 3+10 years 12.50% 0.75 0.15 APDRP work

16 REC VKN/33.11KVs 6.38 6.34 31.01.07 3+10 years 12.50% 1.90 0.40 Station Work

17 REC Bulk loan 89.66 34.81 16.10.12 5+2year 12.25% 27.85 5.05 Transformer & Conductors

18 REC/RGGVY Loan I[Smg/cml] 8.50 7.65 30.03.09 11.75% 5.20 0.91 RGGVY 19 REC/RGGVY Loan II[DK/Udupi] 11.33 7.87 31.03.13 11.50% 7.87 1.12 RGGVY 20 PFC/R-APDRP 12.07 7.24 28.02.09 10 years 9.00% 5.09 0.00 R APDRP 20 years 21 GOK PMGY 1.26 1.26 10.12.04 Morotorium 5 yrs 12.00% 0.64 0.08 PMGY for 50% loan 22 GOK INTEREST FREE 22.62 22.62 17.03.09 FREE 0.62 APDRP work Total 547.58 57.37 Short Term Loan 23 Syndicate Bank STL II 200.00 200.00 02.12.15 35 mnths 8.65% 111.11 15.95 Working Capital Total 111.11 15.95

Over Drafts 24 Vijaya Bank OD 40.00 10.40% 0.00 3.66 Working Capital

25 CBI OD 45.00 10.70% 0.00 3.08 Working Capital

26 State Bank of Mysore OD 80.00 10.65% 0.00 6.41 Working Capital

27 Syndicate Bank OD 100.00 9.45% 99.24 2.02 Working Capital 28 Union Bank of India OD 165.00 8.65% 164.88 2.26 Working Capital Total OD limit 430.00 264.12 17.43 Grand Total 922.81 90.75 15TH ANNUAL REPORT 2016 –17

Mangalore Electricity Supply Company Limited MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

BOARD OF DIRECTORS 1. Jawaid Akhtar IAS : Chairman 2. Chikkananjappa : Managing Director 3. K. Ramakrishna : Director (Technical) 4. Dr. Aditi Raja IA & AS : Director 5. A.N Jayaraj : Director 6. M. Nagaraju, : Director 7. P.I Sreevidya IAS : Director 8. Prachipandey IA & AS : Director 9. C. Adinarayana : Director 10. M. D. Ravi : Director 11. S. Sanjeeva Shetty : Director 12. Surendra B Kambaly : Director 13. B.V. Jayaram : Director 14. Riyaz Ahmad : Director 15. Mallika P Pakkala : Director 16. Abhilash P.V : Director 17. Sudhir Kumar : Director 18. J.Sadashiva Ameen : Director 19. K.M Krishnappa : Director 20. R. Mohan : Director

CORPORATE OFFICE MESCOM BHAVANA, Kavoor Cross Road, Bejai, Mangaluru - 575 004.

WEBSITE www.mesco.in

CORPORATE IDENTITY No. (CIN): U40109 KA 2002 SGC 030425

BANKERS: 1. Syndicate Bank 2. Canara Bank 3. State Bank of India 4. State Bank of Mysore 5. Vijaya Bank 6. Corporation Bank 7. Central Bank of India 8. Karnataka Bank 9. Punjab & Sindh Bank 10. Indian Bank 11. Axis Bank 12. Union Bank of India

STATUTORY AUDITORS M/s. Gopalaiyar and Subramanian, Chartered Accountants, Coimbatore

COST AUDITORS M/s. Rao Murthy & Associates, Cost Auditors, Bengaluru

SECRETARIAL AUDITORS M/s. Ullas Kumar Melinamogaru & Associates, Mangaluru

2 ANNUAL REPORT 2016-17

TABLE OF CONTENTS

1. Directors' Report .... 4 2. Secretarial Audit Report .... 30 3. Addendum to the Directors' Report .... 41 4. Auditors' Report .... 47 5. Annexures to the Auditors' Report .... 51 6. Comments of the Comptroller and Auditor General .... 58 of India on the Annual Accounts 7. Balance Sheet .... 59 8. Statement of Profit and Loss .... 60 9. Cash Flow Statement .... 61 10. Significant Accounting Policies .... 62 11. Notes on Financial Statements .... 65 12. Vital Statistics .... 98

1. ¤zÉÃð±ÀPÀgÀ ªÀgÀ¢ .... 109

2. ¸ÉPÉæmÉÃjAiÀÄ¯ï Drmï ªÀgÀ¢ .... 135 3. ¤zÉÃð±ÀPÀgÀ ªÀgÀ¢UÉ C£ÀÄ§AzsÀ .... 146 4. ¯ÉPÀÌ ¥Àj±ÉÆÃzsÀPÀgÀ ªÀgÀ¢ .... 151 5. ¯ÉPÀÌ ¥Àj±ÉÆÃzsÀPÀgÀ ªÀgÀ¢UÉ C£ÀÄ§AzsÀUÀ¼ÀÄ .... 155 6. ¨sÁgÀvÀ ¸ÀgÀPÁgÀzÀ ¤AiÀÄAvÀæPÀgÀÄ ªÀÄvÀÄÛ ªÀÄºÁ¯ÉÃR¥Á®gÀ ºÉÃ½PÉUÀ¼ÀÄ .... 163 7. D¹Û ºÉÆuÉ ¥ÀnÖ .... 164 8. ¯Á¨sÀ ªÀÄvÀÄÛ £ÀµÀÖ ¥ÀnÖ .... 165 9. £ÀUÀzÀÄ ºÀjªÀÅ ¥ÀnÖ .... 166 10. ¯ÉPÁÌZÁgÀzÀ ¥ÀæªÀÄÄR PÁAiÀÄð ¤ÃwUÀ¼ÀÄ .... 167 11. ºÀtPÁ¸ÀÄ «ªÀgÀuÁ ¥ÀnÖAiÀÄ n¥ÀàtÂUÀ¼ÀÄ .... 170 12. ¥ÀæªÀÄÄR CAQ CA±ÀUÀ¼ÀÄ .... 204

3 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

DIRECTORS' REPORT FOR FY 2016-17 1. The Board of Directors herewith present the 15th Annual Report on the business and operations of the Company along with the Audited Accounts for the year ended 31st March, 2017 duly expressing its sincere thanks to the esteemed consumers and duly recognizing with gratitude, the guidance and efforts of predecessor Chairman and Directors who have served in the Company. Mangalore Electricity Supply Company Limited (MESCOM) being wholly owned Government of Karnataka undertaking, was awarded with the Chief Minister's Annual Award i.e., "Rathna 2014-15", is engaged in distribution of electricity in four districts of Karnataka i.e., Dakshina Kannada, Udupi, Shivamogga and Chikkamagaluru. It has performed creditable in 2016-17 also. 2. Company having a working strength of 5447 employees is serving 2220040 consumers of various category has achieved an all-time record turnover of about ` 3420.86 Crores during the year 2016-17. 3. The status of the Company as on 31-03-2017 at a glance:

Area of Supply and Distribution (Sq. Km.) 26,222 Number of sub stations 400 KV, 220 KV, 110 KV, 66 KV (of KPTCL) 83 Number of 33 KV sub stations 38 Number of Distribution Transformers 59170 Length of LT Lines (in RKMs) 78222.12 Length of 11 KV Lines (in RKMs) 33421.58 Length of 33 KV Lines (in RKMs) 738.38

4. Consumer Base As on 1st April 2016, the Company had a consumer base of 2152546 Nos. with the addition of 67494 Nos. of new consumers during the year. The number of consumers at the end of the year March 2017 stood at 2220040 Nos., comprising of the following categories:

Tariff Description Total LT -1 BJ/KJ 193372 LT-2 (a&b) Lighting & AEH 1455795 LT-3 Commercial 197670 LT-4 IP Set Installations 295047 LT-5 Industrial 28793 LT-6a Public Water Supply 13680 LT-6b Public Lighting 19676 LT-7 Temporary Supply 14153 LT -TOTAL 2218186 HT-1 Water Supply 88 HT-2a Industrial 784 HT-2b Commercial 624 HT-2c Hospitals and Educational Institutions 264 HT-3 Lift Irrigation 26 HT-4 Residential Apartments 52 HT-5 Temporary Supply 16 HT- TOTAL 1854 LT + HT -TOTAL 2220040

4 ANNUAL REPORT 2016-17

5. Review of Balance Sheet and Statement of Profit and Loss: Review of Balance Sheet and Statement of Profit and Loss for the year ending 31st March 2017 with the previous Year ending 31st March 2016 is as detailed below: Analysis of Balance Sheet (` in lakh) Increase (+)/ Variance Sl. No. Particulars 31.03.2017 31.03.2016 Decrease (-) in % I Sources of funds A Share Capital 35807.02 26636.02 9171.00 34.43 B Reserves & Surplus 17019.61 15544.51 1475.10 9.49 C Share holders' fund 52826.63 42180.53 10646.10 25.24 D Share Deposit (pending allotment) 1400.00 1400.00 - - II Non Current Liabilities A Long Term borrowings 41660.56 37304.75 4355.81 11.68 B Other long term liabilities 231601.70 208019.86 23581.84 11.34 C Long term provisions 4186.82 3382.25 804.57 23.79 Sub-total 277449.08 248706.86 28742.22 11.56 III Current liabilities A Short term borrowings 30856.55 22843.09 8013.46 35.08 B Trade Payables 36102.11 24207.85 11894.26 49.13 C Other Current liabilities 52140.94 46733.75 5407.19 11.57 D Short-term provisions 984.41 1139.71 -155.30 -13.63 Sub-Total 120084.01 94924.40 25159.61 26.50 TOTAL EQUITY & LIABILITIES 451759.72 387211.79 64547.93 16.67 II Assets ` 1 Non-Current assets A Fixed Assets (i) Tangible Assets 114052.08 100396.03 13656.05 13.60 (ii) Intangible assets - - - - (iii) Capital work in progress 14655.74 11814.35 2841.39 24.05 (iv) Intangible assets under 425.41 316.99 108.42 34.20 development B Non-Current investments 251.00 251.00 - - C Deferred tax assets (net) - - - - D Long term loans and advances 8161.11 7582.49 578.62 7.63 E Other non-current assets 120556.67 156553.96 -35997.29 -22.99 Sub Total 258102.01 276914.82 -18812.81 -6.79 2. Current assets A Inventories 4225.64 6302.70 -2077.06 -32.96 B Trade receivables 17072.37 26830.96 -9758.59 -36.37 C Cash and cash equivalents 7255.57 4148.42 3107.15 74.90 D Short-term loans and advances 5303.01 4046.12 1256.89 31.06 E Other current assets 159801.12 68968.77 90832.35 131.70 Sub-Total 193657.71 110296.97 83360.74 75.58 TOTAL ASSETS 451759.72 387211.79 64547.93 16.67

5 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED vShare holders' Funds has increased by ` 10646.10 lakh (Net). Amounts added are: (` in lakh)

1. Proposed adjustment to Net worth : (-)2896.00 2. Reserve for Material Cost Variance : (-) 251.62 3. Consumers contribution & Govt. grants towards cost of Capital Assets : 9112.10 4. Consumers contribution & govt. Grants Reduced from Capital Assets : (-) 5783.06 5. Equity released by State Govt. : 9171.00 6. Net Profit for the year : 1293.68 Total additions to Share Holders' fund: 10646.10 vLong term borrowings : This is increased by ` 4355.81 lakhs. During the Year MESCOM has borrowed ` 18200.00 Lakh and repaid ` 11179.69 lakh. Further installments repayable during FY 2017-18 amounting to ` 13097.17 Lakh have been transferred to current liabilities. Increase in the amount of current maturities of long term loans is ` 2664.50 lakh. ` vOther Long Term Liabilities: It is increased by ` 23581.84 lakh (Net). During the Year the long term trade payables have increased by ` 4473.52 lakhs mainly due to accounting of ` 6958.00 lakh of KPCL dues transferred by KPTCL as per G.O. No EN 67 PSR 2017 Bangalore Dated 31.07.2017. Further old dues of KPCL to the extent of ` 2484.48 lakh are cleared during the year. The interest liability to KPCL is increased by ` 286.49 lakhs. Initial/Additional Security deposits have been collected to the extent of ` 4109.65 lakh and MSD to the extent of ` 55.37 lakhs. The payable to other ESCOMs has been increased to the extent of ` 11789.42 lakh (net). Security deposit and retention money amounting to ` 2869.66 lakh has been collected from the Contractors. And there is decrease of ` 2.27 lakh in miscellaneous deposits. vLong Term Provisions: It is increased by ` 804.57 lakh due to increase in liability in accordance with actuarial valuation report towards Earned leave encashment and FBF. vShort Term Borrowings: There is increase in the short term borrowings to the extent of ` 8013.46 lakh mainly due to drawal of additional Bank overdraft for payment of power purchase dues. Further installments repayable during FY 2017-18 amounting to ` 6666.67 Lakh have been transferred to current liabilities. vTrade Payables: The trade payable is increased by ` 11894.26 lakh (net) mainly due to non-clearing of power purchase dues of M/s UPCL (` 6081.06 lakh), CGS Units (` 4391.22 lakh), Short Term & Medium Term power suppliers (` 3232.17 lakhs) and reduction in others suppliers (` -1810.19). However these are not due for payment. vOther Current Liabilities: It is increased by ` 5407.19 lakh, mainly due to increase in the liability payable to Contractors (` 1109.62 lakhs), increase in current maturities of Long term and Short term Loans (` 2664.50 Lakhs). Other liabilities increased by ` 1633.07 lakhs. vShort term Provisions: It is decreased by ` 155.30 lakh, mainly due to decrease in current liability towards Earned leave encashment and FBF as per actuarial valuation report. vTangible Assets: Net fixed Asset is increased by ` 19439.11 lakh due to categorization of Capital Works during the Year. Further it is decreased by ` 5783.06 lakh being the assets created out of Govt. grants and consumer contribution as per AS-12. There is net increase of ` 13656.05 lakh. vCapital Work in progress: It is increased by ` 2841.39 lakh due to uncompleted Station Works, and Improvement works, etc. vLong Term Loans and Advances: It is increased by ` 578.62 lakh, mainly due to increased MAT credit entitlement and Income Tax paid in advance. vOther Non- Current Assets: It is decreased by ` 35997.29 lakh (Net). The long term receivables are decreased by ` 12306.57 lakh, the inter company receivables are decreased by ` 31697.90 lakh mainly due to write off of interest levied on energy balancing dues to the extent of ` 26492.00 lakh. Further Company has accounted the past subsidy of ` 7722.00 lakh as receivable from GoK which was transferred by KPCL to concerned ESCOM's as per GO no. EN 67 PSR 2017 Bangalore, Dated 31.07.2017. Other Receivables is increased by ` 285.18 lakh.

6 ANNUAL REPORT 2016-17 vInventories: It is decreased by ` 2077.06 lakh. vTrade receivables: It is decreased by ` 9758.59 Lakh mainly due to classification of receivables outstanding for more than one year under Non-current Assets. vShort term Loans and Advances: It is increased by ` 1256.89 Lakh mainly due to increase in advances given to the Suppliers and Contractors for Capital Works (` 1222.11 lakh). Other Short term loans increased by ` 34.78 lakh. vOther Current Assets: It is increased by ` 90832.35 lakh (Net). During the year FY 2015-16, Regulatory Assets to the extent of ` 44954.00 Lakhs are created in the accounts by computing the provisional gap expected to be considered by Hon'ble KERC for inclusion in the tariff revision of future year/s. Hon'ble KERC has arrived at a Revenue Gap of ` 39574.00 lakhs and carried forward the same for allowing in the year 2017-18. Hence excess Regulatory Asset created to the extent of ` 5380.00 lakh has been written off during this year itself and balance amount of ` 39574.00 lakh will be reversed during FY 2017-18. Further fresh regulatory Asset to the extent of ` 51196.93 lakh is created in the accounts for FY 2016-17 by computing the provisional gap expected to be considered by KERC for inclusion in the tariff revision of future year/s. vDuring the year 2016-17, the company has accounted ` 78066.05 lakhs as subsidy receivable from Government of Karnataka towards free power supply to the IP set consumers (upto 10HP) and BJ/KJ consumers having monthly consumption upto 18 units. Out of these ` 52626.00 lakhs has been released by Government of Karnataka during the year and balance of ` 25440.05 lakhs is accounted as receivable as on 31.03.2017. This apart, out of the opening amount of ` 15429.89 lakhs as on 01.04.2016, a sum of ` 4331.00 lakh has been received during the year. There is a net increase of ` 21109.05 lakhs. Further, pursuant to G.O. No. EN 3 PSR 2016/P3 Dated 31.03.2017, the Company has transferred the accumulated dues from Rural Local bodies together with interest upto 31.03.2015 amounting to ` 21959.00 lakh to PCKL for securitisation of such receivables by PCKL in order to get loans from Banks and utilise the proceeds of such loans to clear the dues of KPCL. The other receivables are increased to the extent of ` 1947.37 lakhs. vRatios

Sl. No. Particulars 31.03.2017 31.03.2016 1 Debt: Equity Ratio a) Long Term Borrowings : Equity 0.86 : 1 0.99 : 1 b) Including Short Term Borrowings 1.51 : 1 1.60 : 1 2 Current Ratio 1.61 : 1 1.44 : 1 3 Liquid Ratio 1.58 : 1 1.38 : 1

2. Analysis of Statement of Profit and Loss (` in lakh)

Increase(+)/ Variance Sl. No. Particulars 31.03.2017 31.03.2016 decrease(-) in (%) A Income 1 Revenue from operations 326244.15 269175.21 57068.94 21.20 (Distribution of Power) 2 Other Income 15841.37 7692.32 8149.05 105.94 Total Revenue 342085.52 276867.53 65217.99 23.56 B Expenses 1 Purchase of power 254170.75 223056.22 31114.53 13.95

7 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Increase(+)/ Variance Sl. No. Particulars 31.03.2017 31.03.2016 decrease(-) in (%)

2 Employee Benefits Expense 26697.98 24924.08 1773.90 7.12 3 Finance Costs 12691.10 11060.42 1630.68 14.74 4 Depreciations and amortization 7844.53 6408.14 1436.39 22.42 expenses 5 Other Expenses 39387.48 10577.73 28809.75 272.36 Total Expenses 340791.84 276026.59 64765.25 23.46 C Profit before exceptional and 1293.68 840.94 452.74 53.84 extraordinary items & tax (A-B) D Exceptional Items - -270.45 270.45 -100.00 E Profit before extraordinary items 1293.68 1111.39 182.29 16.40 and tax (C-D) F Extraordinary Items - - - - G Profit before tax (E-F) 1293.68 1111.39 182.29 16.40 H Tax Expense 307.01 231.22 75.79 32.78 I MAT credit entitlement -307.01 -231.22 -75.79 -32.78 J Profit after Tax (G-H-I) 1293.68 1111.39 182.29 16.40 vTotal Revenue has increased by 21.20% (` 57068.94 Lakh) net, over the previous year. This includes following regulatory Asset Adjustments: Regulatory Assets to the extent of ` 44954.00 Lakhs are created in the accounts for FY 2015-16 by computing the provisional gap expected to be considered by Hon'ble KERC for inclusion in the tariff revision of future year/s. Hon'ble KERC has arrived at a Revenue Gap of ` 39574.00 lakhs and carried forward the same for allowing in the year 2017-18. Hence excess Regulatory Asset created to the extent of ` 5380.00 lakh has been written off during this year. Further fresh regulatory Asset to the extent of ` 51196.93 lakh is created in the accounts for FY 2016-17 by computing the provisional gap expected to be considered by KERC for inclusion in the tariff revision of future year/s. If these adjustments of Regulatory Assets are excluded, the increase in revenue during FY-17 will be 20.09% (` 46513.62 lakh). This increase in revenue is because of increase in sale of energy to the extent of 485.25 Mus and increase in the tariff. vOther Income is increased by 105.94% (` 8149.05 lakh) over the previous year. This is mainly due to accounting of income consequent to write off of interest charged by KPCL on past Power Purchase dues and transferred by KPTCL as per GO no. EN 67 PSR 2017 Bangalore Dated 31.07.2017 to the extent of ` 3660.00 lakhs and also due to writing off of excess provisions created for power purchase cost during previous years in respect of KPCL Stations. Interest due from Gram Panchayaths for delayed payment of Electricity consumption charges levied during FY 2016-17 is withdrawn as per GO no.EN 3 PSR2016/P Dated 31.03.2017 to the extent of ` 1625.49 lakh. Since the arrears in respect of IP set Consumers having connected load upto 10 HP is frozen with effect from 01.08.2008, the Company has stopped charging interest on said arrears from the year 2011-12 which has an impact of ` 9.23 Crs in FY-17. vPower purchase cost has been increased by 13.95% (` 31114.53 lakh) over the previous year due to purchase of high cost energy. As per the energy balancing for the year 2016-17, Company is payable to other ESCOMs to the tune of ` 8921.80 lakh.

8 ANNUAL REPORT 2016-17 v? Employee cost has increased by 7.12% (` 1773.90 lakh) over the previous year on account of increase in salaries, wages and increase in the rate of pension contribution payable to the Trust. v? Finance Charges has increased by 14.74% (` 1630.68 lakh) over the previous year. This year also Company has not accounted the interest liability for belated payment of power purchase dues of KPCL. v? Depreciation and amortization expenses have increased by 22.42% (` 1436.39 lakh) over the previous year. vOther expenses have increased by 272.36% (` 28809.75 lakhs) over the previous year. This is mainly due to write off of interest levied on energy balancing dues to the extent of ` 26492.00 lakh of previous years. The R&M expenses have increased by ` 284.42 lakh and A&G expenses have increased by ` 105.83 lakh due to increase in vehicle running expenses and remuneration paid for Contract agencies for the services obtained. The other expenses are increased by ` 1927.50 lakh. v? Profit before Tax has increased by ` 182.29 lakh over the previous year. vThe Current tax works out at ` 307.01 lakh, against the profit of ` 1293.68 lakh on MAT basis vMAT Credit Entitlement: Company has accounted the MAT credit entitlement to the tune of ` 307.01 lakh for the current year. v? Profit after Tax has increased by ` 182.29 lakh over the previous year. 6. Dividend The Board has not proposed any dividend for the financial year ended 31st March, 2017. 7. Source of funds & Borrowings a) The source of funds of the Company stands at ` 528.27 Cr. at the end of the Financial Year comprising of Equity Share Capital A/c of ` 358.07 Cr., and Reserves & Surplus of ` 170.20 Cr. b) The total long term borrowing of the Company amounts to ` 416.61 Cr. and the security deposits from consumer's amounts to ` 509.09 cr. 8. Power purchase During the year 2016-17, the power purchase is 5668.84 MU at a total cost of ` 2541.71 Cr. Total energy available for sale is 5411.61 Mus. Total sales during the year were 4794.42 MU. Remaining 617.19 MU was attributable to system loss. 9. MESCOM is purchasing power from generators as per GoK order No. EN 131 PSR 2003 dated 10.05.2005 w.e.f 10.06.2005. The power is procured from the following sources during FY-17. a. Central Generating Stations like NTPC, NTPC VVNL, NLC, NPCIL, NTECL & NTPL. b. State owned generating stations of KPCL – Hydel & Thermal. c. Major Independent Power Producer - Udupi Power Corporation Ltd., d. Independent power producers from non-conventional sources like Wind, Solar & Mini hydel. e. Telangana State Power Generation Corporation Ltd.,(Priyadarshini Jurala) f. Damodar Valley Corporation Ltd., g. Co-gen Short Term & Medium Term The GoK issues order allocating share to each ESCOM for payment purpose and also power allocation. The share of payment allocation to MESCOM for FY 17 as per order No: EN 22 PSR 2016, Bengaluru dated 18.03.2016 is as below:

1. KPC Hydel, TB Dam 3.8537% to 8.0184% 2. KPC Thermal, Jurala & CGS 8.0184% to 10.3405% 3. Major IPPs 8.0184% 4. Short term & Medium term 8.0184% 5. IPPs of NCE sources with whom MESCOM has entered 100% into PPA

9 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

2. The source wise power purchase and cost incurred by MESCOM during FY 2016-17 is as below:

Source Energy (MU) Amount Average Cost (Crs) (`/Unit) KPCL (Thermal) 1548.28 670.84 4.33 KPCL (Hydel) 411.27 41.83 1.02 Total KPCL 1959.55 712.67 3.64 CGS 1575.61 562.34 3.57 Priyadarshini Jurala 9.55 4.73 4.95 Damodar Valley Corporation 267.47 119.16 4.46 Major IPPs 594.03 266.59 4.49 Medium & Short term power purchase 369.65 162.54 4.40 Co-gen 16.31 5.65 3.46 NCE Projects Mini Hydel 227.80 78.33 3.44 Wind Mill 284.20 101.88 3.58 Solar 74.91 55.97 7.47 Total NCE 586.91 236.18 4.02 Captive Power - - - UI Charges 45.39 12.59 2.77 KPTCL Transmission Charges - 248.38 - PGCIL Transmission Charges - 111.70 - Other Expenses 11.23 8.01 - Total 5435.70 2450.54 4.51 Energy Balancing FY 2016-17 233.14 89.22 3.83 Sub Total 5668.84 2539.76 4.48 Energy Balancing Difference of previous years - - - Net Energy/Cost 5668.84 2539.76 4.48

3. The comparison of source wise power purchase cost of FY 2015-16 & 2016-17 :

2015-16 2016-17 Source Energy Cost Average Energy Cost Average (MU) (Crs) (`/unit) (MU) (Crs) (`/unit) KPCL 2275.77 836.80 3.68 1959.55 712.67 3.64 CGS 1121.50 367.96 3.28 1575.61 562.34 3.57 Priyadarshini Jurala 0.75 4.79 63.87 9.55 4.73 4.95 Damodar Valley Corporation 43.99 19.74 4.49 267.47 119.16 4.46 Major IPPs 381.47 159.83 4.19 594.03 266.59 4.49 Medium & Short term power 564.70 287.42 5.09 369.65 162.54 4.40 purchase Co-gen - - - 16.31 5.65 3.46 NCE 554.24 208.82 3.77 586.91 236.18 4.02

10 ANNUAL REPORT 2016-17

2015-16 2016-17 Source Energy Cost Average Energy Cost Average (MU) (Crs) (`/unit) (MU) (Crs) (`/unit)

Captive Power 2.44 0.63 2.58 - - - KPTCL Transmission Charges - 218.70 - - 248.38 - PGCIL Transmission Charges - 71.81 - - 111.70 - UI Charges & Other Expenses 46.71 21.60 4.62 56.62 20.60 3.64 Total 4991.57 2198.10 4.40 5435.70 2450.54 4.51 Energy Balancing adjustment 36.15 14.87 4.11 233.14 89.22 - Sub Total 5027.72 2212.97 4.40 5668.84 2539.76 4.48 Energy balancing adjustment - 17.43 - - - - of previous years Net Energy & Amount 5027.72 2230.40 4.44 5668.84 2539.76 4.48

10. An overview of the performance of MESCOM (in respect of Distribution Transformers, HT/LT lines, Electrification, Vigilance Activities and Revenue Collection Efficiency etc.):

Sl Particulars Measure 2016-17 2015-16 2014-15 2013-14 2012-13 No 1 Total Lines & TCs added: a. DTCs erected Nos. 5114 4504 4749 3620 3395 b. 11 KV HT lines RKms 1781.36 1595.70 1187.70 1135.57 1208 c. LT lines RKms 1413.62 1462.38 1931.99 1290.07 1676 d. Reconductoring of HT Lines RKms 103.65 252.47 179.06 190.29 468.97 e. Reconductoring of LT Lines RKms 362.05 579.45 780.54 607.89 676.01 2 DTC Failures % 11.67 11.88 11.52 10.02 9.63 3 RE Works: (Excluding RGGVY) a. Electrification of Hamlets Nos. 3 12 12 24 201 b. Electrification of Harijan Nos. 13 6 8 13 45 Basthies/JCs/Tandas c. Electrification of Tribal Nos. 9 8 10 4 20 Colonies 4 Servicing under: a. Drinking Water Supply Nos. 1018 631 887 814 619 Schemes b. Ganga Kalyana Schemes Nos. 1593 1090 1150 997 1310 5 Total Energy Handled MU 5411.61 4869.13 4688.54 4584.63 4280.45 6 Distribution loss % 11.40 11.50 11.57 11.93 11.88 7 IP set serviced a. IP sets serviced Nos. 10650 11996 10273 8493 6655 b. Regularisation of Nos. - 9394 6142 - 8137 Unauthorised IP sets serviced 8 BJ/KJ installations serviced Nos. 2412 1083 1351 492 1023 (Excluding RGGVY)

11 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

11. Milestones achieved during 2016-17: Several initiatives have been taken up to strengthen and stabilise the distribution system as well as the fiscal status of the Company. A bird's eye view of some of the major achievements and the innovative initiatives are as follows: (A) Addition of new Distribution Transformers to the System: In order to improve the quality and reliability of power supply, 1225 numbers of distribution transformers are added to the system in the identified low voltage pockets. (B) Metering Programme: The Company is marching towards 100% metering of the installations. With a perennial and dedicated commitment, through universal metering programme, the Company has achieved 97.72% metering as at the end of FY 17. (C) Metering of Distribution Transformer Centers: MESCOM has contemplated to introduce metering to all Distribution Transformer centers with RRAMR facility to carry out energy audit in a more effective manner. 37083 numbers of DTCs have been metered out of 59170 numbers of DTCs as at the end of FY-17. Further, providing meters to the balance numbers of Distribution Transformer Centres is under progress. (E) R-APDRP : ?MESCOM has taken up R-APDRP Part-A project in 11 towns (viz. Mangaluru, Udupi, Puttur, Bantwala, Shivamogga, Bhadravathi, Sagar, Shikaripura, Kadur, Tarikere and Chikkamagaluru) for revised sanctioned cost of ` 29.05 Crores. ?The IT implementation work has been awarded to M/s. Infosys Technology, Bengaluru. ?Initially M/s. Reliance Infrastructure, Mumbai had been awarded the IT consultancy works. At present, it has been awarded to M/s Ernst & Young, Gurgaon. ?All 11 numbers of R-APDRP towns have been declared Full stack Go-Live. ?R-APDRP Part-'B' Project work is not taken up in MESCOM (F) New 33/11 KV Sub-station/ Enhancement /Providing additional power transformers in existing 33/11 kV Sub-station : ?Establishing 2x5 MVA, 33/11 kV substation at Malpe in Udupi Division and construction of 33 kV single circuit tap line to a distance of 7 kms. ?Establishing 2x5 MVA, 33/11 kV substation at Venur in Belthangady Taluk in Bantwal Division and construction of 33 kV single circuit line to a distance of 14.9 kms using Coyote conductor and 0.60 kms using UG cable. ?Establishing 2x5MVA, 33/11kV substation at Kalladka in Bantwal Division and construction of 33 kV double circuit line to a distance of 0.25 kms. ?Establishing, 1x5MVA, 33/11kV substation at Byakodu in Sagar Division and construction of 33 kV single circuit tap line to a distance of 65 kms. ?Establishing 1X5MVA, 33/11 kV substation at Kavu at Madnoor Village in Puttur Division and construction of 33kV single circuit line for a distance of 3.0 kms. ?Providing additional 1x5MVA, 33/11kV power transformer at 33/11kV NR Pura substation in Chikkamagaluru division. ?Providing additional 1x5 MVA, 33/11 kV power transformer at 33/11 kV, Savanoor substation in Puttur division. ?Enhancement of 1x5 MVA power transformer by 1x12.5 MVA power transformer at 33/11kV Sullia substation, Puttur Division. ?Establishing 2x5 MVA, 33/11 kV Substation at Guthigaru in Sullia Taluk and construction of 33 kV single circuit line to a distance of 24 kms using Coyote conductor & 2.5 kms using UG cable. 12. Other Schemes ?Decentralized Distribution Generation(DDG): REC has communicated sanction for only 2 numbers of DDG projects covering 3 numbers of unelectrified villages namely Shettihalli, Chitrashettihalli and Urulugallu villages in Shivamogga District for electrification of 123 households in Shivamogga District for an amount of ` 0.615 Crores considering Standalone solar system and the works have been completed during Fy-2017. 12 ANNUAL REPORT 2016-17

?Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) GoI has launched DDUGJY for Rural areas. REC is the Nodal Agency. Scope of work includes feeder separation, strengthening of sub-transmission and distribution system, metering, rural electrification etc. 'In-Principle' approval for an amount of ` 395.65 Crores has been communicated from REC/GoK during January-2017 for all 4 districts of MESCOM. Further, feeder segregation and rural electrification woks have been awarded. Tenders have been called for metering component works. ?Integrated Power Development Scheme(IPDS) GoI has launched IPDS for Urban/ Semi-urban areas. PFC is the Nodal agency. Scope of work includes strengthening of sub-transmission and distribution network, metering, provision for solar panels, IT enablement works etc. Sanction for an amount of ` 157.80 Crores has been communicated from PFC for 29 numbers of statutory towns for the above works excluding IT enablement works. Further, for strengthening of distribution networks and provision for solar panels on roof top of government buildings works have been awarded. Tenders have been called for metering component works. ?IPDS (Integrated Power Development Scheme) Part -II: The scope of work involves ERP and IT applications in IPDS towns i.e. establishing IT infrastructure etc. The DPR amounting ` 6.00 Crores has been submitted to MoP and approval is awaited. ?Belaku Yojana 'Belaku Yojana' scheme is a GoK programme which aims at large scale replacement of 2 numbers of incandescent Lamps in Anthyodaya Anna Yojane (AAY) households with 2 numbers of CFLs. MESCOM has been allotted 2,00,400 numbers of CFLs for distribution out of which 1,92,807 numbers of CFLs have been distributed. ?LED distribution It is a program towards energy conservation under domestic category. Program is launched for distribution of LED bulbs and LED Tube lights to the domestic consumers through EESL. 5 to 10 LED bulbs are being issued to each consumer at a concessional price of ` 80/- per bulb. In total 29, 49,897 numbers of LED Bulbs and 10,605 number of LED Tube lights have been distributed upto March-2017. ?Solar LED Lanterns scheme Solar LED Lanterns scheme is a GoK programme for promotion of renewable energy which aims at distribution of 'Solar LED Lanterns' to the beneficiaries who are economically backward, living in remote and isolated locations and are not supplied with electricity. MESCOM has been allotted 6500 numbers of 'Solar LED Lanterns' for distribution out of which 3,952 number have been distributed. 13. Other Programme: ?Replacement of Electromechanical meters by Static meters: As per CEA guidelines all the interface meters, consumer meters and energy accounting and audit meters shall be of Static type, with an objective to increase metered consumption, thereby reducing commercial losses especially in LT2, LT3, LT5 installations. At present only New/MNR installations are being provided with Static meters supplied through Meter outlets in MESCOM. ?Providing Infrastructure to regularized UIP sets : As per GoK order No: EN9/PSR 2011 dated: 11.03.2011, 21,693 numbers of unauthorized IP sets have been regularized and 19646 numbers of IP sets have been provided with infrastructure and work is under progress. As per GoK order No: EN41/VSC 2014/PI dated: 14.07.2014, 15536 numbers of unauthorized IP sets have been regularized and 335 numbers of IP sets have been provided with infrastructure. For speedy execution of providing infrastructure to balance 15,201 numbers of IP sets, works have been entrusted on total turnkey basis (Rate Contract) at a cost of ` 331.55 Crores for which completion schedule of one year is fixed including monsoon period.

13 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Proposed Target for Capital Investment Plan 2017-18:

Sl. No. Schemes Target 1. Electrification of Hamlets 10 Nos. 2. Electrification of HB/ JC/ Tandas 10 Nos. 3. Electrification of Tribal Colonies 10 Nos. 4. Energization of IP sets 7500 Nos. 5. Providing infrastructure to regularized unauthorized IP sets 8000Nos. 6 Kutir Jyothi 1500 Nos. 7. Service Connection 50000 Nos. 8. Addition of new 33 kV sub-stations and allied lines 2 Nos. 9. Augmentation of 33 kV Stations. 5 Nos. 10. New HT Line 1200 Kms. 11. New LT line 1200 Kms. 12. Distribution Transformers 3000 Nos.

14. Civil Engineering Works: During 2016-17 the following office buildings and other infrastructure works has been taken up in MESCOM. [` In Lakhs] Completed works Spill over works Sl. Particulars Expenditure Nos., of work Expenditure No. during 15-16 completed during 15-16 1 Construction of office Building/ 950.00 20 1400.00 Stores/Guest houses and other building and extension works 2 Other infrastructure works such as 650.00 35 200.00 compound, road, water supply, fencing & drainage etc., Total 1600.00 55 1600.00 For financial year 2017-18, a budget of ` 1600.00 lakhs is allocated towards spill-over and fresh Civil Engineering works in MESCOM. 15. New initiatives in procurement of Materials: 1. Energy Efficient 3 star labeled Distribution Transformers:- In order to comply with Energy Conservation Act-2001, procurement of Energy Efficient minimum 3 star labeled Distribution Transformers is being implemented since 2008. Number of such Distribution Transformers procured during FY-2016-17 are as below:

Capacity Quantity (Nos) 25 kVA 2800 63 kVA 1448 100 kVA 150 Total 4398

2. Following Polymeric Type Materials are being procured instead of Porcelain type materials in order to minimize the failure rates. ?Only Polymeric type Lightning Arrestors are being procured in order to minimize the distribution transformer failure rate especially in the heavy lightning prone areas. Quantity procured during 2016-17 is 13500 Nos.

14 ANNUAL REPORT 2016-17

?50000 Nos of 45KN Polymeric type Insulators for 11kV distribution system are procured during 2016-17. ?60000 Nos of 11kV 5KN Polymeric Type Pin Insulators for 11kV distribution system are procured during 2016-17 for usage in coastal and heavy lightning prone areas 3. Purchase order has been placed for supply of 1 No each of Single Phase, 40 Position & Three Phase, 10 Position, Fully Automatic Energy Meter Test Benches suitable for calibration of 3 Phase and single phase energy meters to be installed at Shivamogga & Chikkamagaluru Circles 4. Purchase order has been placed for procurement of 7sets of fully automatic Distribution Transformer Test Benches to be installed at various divisions in MESCOM jurisdiction. Materials are already supplied and installation of the same is under progress. 16. Public Grievances Cell a. Public Grievances Cell established in the Corporate office is working under the direct control of Managing Director which is headed by Manager (PG Cell). During the year 2016-17, the Public Grievances Cell received 338 written complaints out of which 76.92% i.e., 260 complaints were resolved satisfactorily. The remaining 78 complaints were redressed in the current financial year. Further 829 minor complaints relating to fuse-off call, low voltage, etc, were received through telephonic calls. b. The category-wise complaints: Sl. No. Category of complaints Nos. of Complaints 1 Electricity Supply & Distribution code -violation 1 2 Voltage/Interruptions 17 3 Bills Related 43 4 Delay in Sanction & Work 1 5 Accident & Compensation 9 6 Theft & unauthorized use of Electricity 31 7 Transformers Shifting etc. 26 8 Bribe/Corruption/Dishonest 9 9 Reduction in Deposits /Load Reduction/Repayment of Deposits 2 10 New Connection 9 11 Disconnections 12 12 Other Miscellaneous Complaints. 178 Total 338

c. A comparative data of complaints are as follows; No. of Complaints 2012-13 2013-14 2014-15 2015-16 2016-17 Remarks Written Complaints 590 406 370 340 338 Decrease of 2 complaints Minor Telephonic Complaints 475 850 600 579 829 Decrease of 250 complaints

17. Personnel, Industrial Relations and Human Resource Development: A) The Company functions through the following organizational structure: (as on 31.03.2017)

Corporate O&M O&M O&M O&M Revenue O&M Office Zone Circles Divisions Sub Divisions Sections Sections 1 1 4 13 58 11 216

15 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

B) Personnel Details: The working strength of the employees as on 31.03.2017 is placed category – wise as under:

Mangaluru Udupi Shivamogga Chikmagaluru Total Cadres Circle Circle Circle Circle S W V S W V S W V S W V S W V A-Grade (Regular Employees) 142 120 22 32 31 1 45 43 2 35 28 7 254 222 32 A-Grade (Deputation Employees) 1 1 ------1 1 - Total 143 121 22 32 31 1 45 43 2 35 28 7 255 223 32 B-Grade (Regular Employees) 125 76 49 44 34 10 87 47 40 59 30 29 315 187 128 B-Grade (Deputation Employees) 1 1 - 1 1 - 1 - 1 1 1 - 4 3 1 Total 126 77 49 45 35 10 88 47 41 60 31 29 319 190 129 C-Grade (Regular Employees) 905 537 368 495 308 187 709 508 201 489 319 170 2598 1672 926 C-Grade (Deputation Employees) 4 2 2 5 5 - 4 4 - 4 3 1 17 14 3 Total 909 539 370 500 313 187 713 512 201 493 322 171 2615 1686 929 D-Grade (Regular Employees) 1922 1114 808 1088 611 477 1559 1034 525 1097 589 508 5666 3348 2318 Company Grand Total 3100 1851 1249 1665 990 675 2405 1636 769 1685 970 715 8855 5447 3408

S-Sanctioned Posts, W-Working Posts, V-Vacant Posts

C) Training and Development Programmes during the year 2016-17 a) Keeping in view of the organization growth and by onsidering necessity to provide training through internal and external agencies in the fast growing technological environment training is imparted, with special importance to work culture to the officers and employees at each level of organization hierarchy. b) Also, training on Contract Management, Service Tax, Excise & Customs Duty, commercial aspects of ESCOM operations, better productivity through process and people, Public Private Partnerships, Design Development of Efficient Transformers, IPDS implementation, Finance for Non-finance Officers, Transformers Quality Control, Skills for personal effectiveness, Regulatory Aspects of Power Sector Operations, New Techniques in Metering, Billing and Collection, Open Access, Power Trading and Availability Based Tariff, Technical Symposium, Evolving Technologies in intelligent Management of future Grid, Urja Mitra Application, Smart Grid Technologies : Recent initiatives, challenges and opportunities, Introduction of GST, Indian Accounting Standards etc., have been given to the employees for the enrichment of their knowledge and betterment of their attitudes and behavior. c) 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 programmes.

16 ANNUAL REPORT 2016-17

The Details of training programmes are as follows:

Internal Training Programmes:

Sl. No. Subject No. of Total Cost Participants (in `) 1 M.T.T.P.-2 40 4,06,452 2 REC/C&D 272 7,87,287 Total 312 11,93,739

Total No. of Internal Training Programmes 2 No. of Persons Participated 312 Total Cost including Programme fees ` 11,93,739/- Cost per Head (Average) ` 3,826/-

External Training Programmes : The Details of Training held through the Internal and External Training Centre on various subjects in the year 2016-17 are as given below:

Sl. Subject No. of Amount No. Participants (in `) 1 Contract Management 2 - 2 Electrical Transformer (Quality Control) Order 2 - 3 Labour Laws-covering also the contract labour 2 8360 (regulation & abolition) 4 Latest Updates on Service Tax, Excise and Customs Duty 2 9405 (covering also impact of proposed GST) 5 Commercial aspects of ESCOM operations for the officers 8 - of power sector 6 Better Productivity through process and people 1 - 7 Operation, Maintenance and Protection aspects 1 23187 of distribution substations 8 Knowledge Exchange Program - 3 1 - 9 Public Private Partnerships (PPPs) 2 - 10 Design and Development of Efficient Transformers 3 22050 11 IPDS implementation 1 - 12 Finance for Non-Finance Officers 2 - 13 PFMS portal for payment and accounting of DDUGJY/RGGVY 1 - projects 14 Tender, Bidding and Contract Management 2016 2 45150 15 Trafocare 2016 Workshop on Transformers 1 - 16 Skills for Personal Effectiveness 4 - 17 Public Private Partnerships (PPPs) 2 - 18 "SSCI - Sustainable Smart Cities SUMMIT" 2 20000 19 Tariff Policy and Submission of ARPs-Regulatory Compliance 2 41400 20 Contract Management 3 - 21 Open Access, Power Trading and Tariffs - ABT Scenario 2 34500 22 Leveraging IT in Power Distribution 1 -

17 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Sl. Subject No. of Amount No. Participants (in `) 23 Day - long GIS Session 1 - 24 Regulatory Aspects of Power Sector Operations 7 - 25 New Techniques in Metering, Billing and Collection 4 - 26 IDAM admin functionalities 3 - 27 Open Access, Power Trading and Availability Based Tariff (ABT) 1 20700 28 Finance for Non-Finance Officers 3 - 29 Implementation of SAPCC and Opportunities for Climate Finance 5 - 30 Technical Symposium - 2016 20 - 31 Evolving Technologies in Intelligent Management of future Grid 2 - 32 Urja Mitra Application 21 - 33 Smart Grid Technologies : Recent Initiatives, Challenges and 6 - Opportunities (ISSGT 2017) - reg. 34 Introduction of GST 137 - 35 Indian Accounting Standards 4 - 36 Karnataka CMA Convention 6 - 37 PFMS implementation 1 - Total 268 224752

Total No. of External Training Programmes 37 No. of Persons Participated 268 Total Cost including Programme fees ` 2,24,752/- Cost per Head (Average) ` 838/-

D. Industrial Relations: The Company has maintained cordial relations with the employees and their union. Employee's grievances if any are redressed at respective offices by conducting periodical meeting with the local office bearers of the union. E. Employees Welfare Schemes: As a step towards strengthening the relationship between the Employees and Management, several welfare schemes have been initiated by the company. a) In order to maintain efficiency continuously in future days, MESCOM has decided to promote and encourage officers/employees by awarding cash prize and appreciation letter to best O&M Division, best O&M Sub-division and best O&M Section in the year 2016-17. b) To promote and encourage sports excellence, an amount of ` 6,00,000/- has been sponsored to MESCOM sports organization, Mangaluru for conducting KPTCL/inter Company State level Kabbadi, Khokho, Power lifting, Body building and Swimming sports meet. c) To maintain cordial relation and welfare of employees, ` 50 Lakhs has been given to KPTCL Employees Association at Chikkamagaluru, for construction of Samudhaya Bhavana. d) Company Quarters facilities wherever available are provided to the employees of the company. F. Training Activities of HRD Centre, MESCOM for the year 2016-17: During the year 2016-17, MESCOM HRD Centre has organized Mandatory Technical Training Programme for KPTCL employees 40 working days (MTTP -2) for 40 members of Overseer, Meter Reader and Junior Meter Reader during the period from 24.05.2016 to 12.07.2016 for MESCOM/KPTCL employees.

18 ANNUAL REPORT 2016-17

National Training Programme conducted to C&D Employees of MESCOM during the year 2016-17 REC & MESCOM have jointly sponsored 4 days training programme to 272 Nos. of maintenance staff in 10 batches of C&D including one day field training. Sponsoring of Socio-Economic Project v` 4 Lakhs to Public Socio-Economic Projects for maintaining one Lion at Dr. Shivarama Karantha Pilikula Nisargadhama, Mangaluru. v` 25,000/- to Mangaluru Sangeethothsava -2016 organised by Sangeetha Parishath – Mangaluru (R) at Sri Vivekananda Auditorium, Ramakrishna Matha, Mangaladevi, Mangaluru on 24.11.2016 to 27.11.2016. vTo promote and encourage academic excellence, cash incentive of ` 2,500/- (Rupees Two Thousand Five Hundred Only) is being been awarded since 2007-08 to each of the meritorious children of the employees of the company, who secure 90% and above marks in SSLC/ 10th Standard and 2nd PUC examination. During FY 2016-17 the cash incentive is awarded to 24 numbers of meritorious children. 18. Recruitment Activities: MESCOM is committed to give quality service to the consumer. With regard to this, efforts have been made to fill the vacant posts at the cutting edge level. Hence, during the year 2015-16 direct recruitment for the post of Assistant Lineman, Station Attendant Gr-2 and Junior Lineman was made and 2253 number of persons were inducted. The appointment of supervision staff, technical and accounts staffs and also the clerical staff has been undertaken and is in progress. The details in this regard are given below: a) For the post of Assistant Engineer (Ele) / (Civil) and Assistant Accounts Officer, Kannada Language Test was conducted on 05.02.2017 at Mangaluru center. b) For the recruitment of 119 Junior Engineer (Ele) / (Civil) posts Online Aptitude Test was conducted on 12.02.2017 at various centers of Karnataka and on the basis of marks secured in the Aptitude Test and as per roster system in vogue, provisional selection list was published and the document verification has been done on 30.05.2017 and action will be taken to issue the appointment orders shortly. c) For the recruitment of 85 Assistant Engineer (Ele) / (Civil) and for the recruitment 41 Assistant Accounts Officer posts, the Online Aptitude Test was conducted on 08.04.2017 to 09.04.2017 at various centers of Karnataka and on the basis of marks secured in the Aptitude Test and as per roster system in vogue, provisional selection list was published, and document verification has been done on 28.06.2017 and action will be taken to issue the appointment orders shortly. d) For the recruitment of 122 Assistants and 74 Junior Assistants posts Online Aptitude Test was conducted from 06.05.2017 to 08.05.2017 at various centers of Karnataka and on the basis of marks secured in the Aptitude Test and as per roster system in vogue, provisional selection list was published and document verification has been done on 02.08.2017 and action will be taken to issue the appointment orders shortly. Further action will be taken to fill the balance vacant posts on need basis. In case of C&D employees working in MESCOM as well as KPTCL (Under MESCOM Jurisdiction), the pension and other terminal benefits are being processed in the Corporate Office on their retirement/death.

19 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

During the year 2016-17 total Pension claims settled are as below:

No. of Pension Papers received No. of pension Papers Processed 128 124

Medical reimbursement scheme is followed in the company as per which, bills worth ` 2000/- and above are processed and approval conveyed from the Corporate Office. During the year 2016-17, 1021 number of medical claims were processed amounting to ` 126.7 lakhs.

Further in order to have financial security to the families of employees in case of death of an employee, a group insurance policy has been initiated to the all the employees for a total sum of ` 10 lakhs for the dependents of each employee. During the year 4 death cases were reported and a sum of `40 lakhs has been paid to the dependents.

19. Electrical Accidents during the year- 2016-17

The details of electrical accidents are presented as below.

Sl. Name of the Departmental Non-Departmental Animal Grand No Circle/Division Fatal Non-Fatal Fatal Non-Fatal Total MANGALURU CIRCLE: 1 Mangaluru -1 - - 2 4 - 6 2 Kavooru - 1 2 - 1 4 3 Bantwal - 1 3 3 3 10 4 Puttur 2 - 7 - 1 10 Circle Total 2 2 14 7 5 30 UDUPI CIRCLE: 1 Udupi 1 2 1 4 - 8 2 Kundapura - 1 1 2 - 4 Circle Total 1 3 2 6 - 12 SHIVAMOGGA CIRCLE: 1 Shivamogga - 6 8 3 13 30 2 Bhadravathi - 1 - - 2 3 3 Sagar - 1 4 4 5 14 4 Shikaripura - - 5 4 6 15 Circle Total - 8 17 11 26 62 CHIKKMAGALURU CIRCLE: 1 Kadur - 2 10 - 5 17 2 Chikkmagaluru 1 1 10 2 10 24 Circle Total 1 3 20 2 15 41 Grand Total 4 16 53 26 46 145

20 ANNUAL REPORT 2016-17

20. Public Relation and Communication activities in MESCOM for the year 2016-17

MESCOM has a separate wing for Communication activities which is looking after Public Relations and Corporate protocol duties. Accounts Officer (Public Relation and Communication) is discharging the duties of this section duly reporting to the Managing Director. Maintaining the relationship with the public and media as well as representing the Company in the society are the main functions of this wing. Arrangement for publication of Company's news and public Notifications like Tender & such other notifications arranging programmes etc., are the routine activities of the section. Further, the news regarding the Power Sector and highlights of company activities will be brought into the knowledge of the management on daily basis.

Highlights of Public Relations and Communication activities in MESCOM during 2016-17:

a) Jana Samparka Sabhas :

It has been made mandatory that, the concerned Superintending Engineers (Ele) of O&M Circles shall conduct consumer meets i.e., Jana Samparka Sabhas, a direct interaction programme with the general public and consumers at sub-divisional headquarters on frequent intervals. The programme schedules of these Jana Samparka Sabhas will be published in the leading newspapers by way of notification and also in the form of news. Under these programmes, the problems and grievances of the consumers relating to electricity distribution have been dealt with and solved in the presence of Company's local officers.

b) Attending VP, TP & ZP Meetings:

The concerned O&M Section Officers are regularly attending the meetings of concerned Village Panchayats and the concerned O&M Sub-divisional Officers are attending the meetings of concerned Taluk Panchayat. Further, the concerned O&M Divisional Officers are attending concerned Zilla Panchayat meetings. In these meetings, Company's concerned Officers will discuss on various ongoing O&M works and Capital works and also redress the customers' complaints and problems if any.

c) Consumer Education Programmes :

Under the Consumer Education Programmes the information and guidance on electricity usage and safety, as well as rules and regulations with regard to electricity are being given to the consumers, during the various programmes and meetings with consumers. Information on power saving, safety and payment modes are made available to the consumers through the paper notification and printed handouts. These informations are being telecasted thorugh audio messages in KSRTC Bus stations of MESCOM jurisdiction.

Consumer Friendly Measure

?24 Hours “Consumer Service Centres” have been opened in major city and town places.

?Soujanya counters are working at Sub Divisional level to redress the public grievances.

?Consumer Grievance Redressal Forums (CGRF) are formed at each District headquarters under the chairmanship of respective O&M Circle's Superintending Engineers (Ele). The details of CGRF and address and contact numbers of the Forum and about its members have been widely published in the leading News Papers.

21 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

?Implementation of Geographical Information System to improve quality of power supply.

?Computerization of all revenue sections and implementation of information technology in day to day activity.

?Electronic clearing system has been introduced for payment of Electricity bills.

?ATP machine have been installed in Sub Divisional and Prime locations, they are working satisfactorily.

?Provision has been made to collect the Consumer Electricity bills through Post Offices.

?Electricity Bills are also collected at 'Mangaluru One' and Shivamogga One' Centers, a multi service providing centre recognized by the Government.

?Electricity bills are also collected through Online, Karnataka Mobile One App and Paytm.

?24x7 CCC (Centralized Customer Care centre) opened in Mangaluru. Consumer can approach from any part of MESCOM jurisdiction through toll free No. 1912 for his electricity related complaints and help.

Other Programmes :

?The newly built Corporate Office own building 'MESCOM Bhavana' was dedicated to the public by Hon'ble Energy Minister. Organized inaugural function and stage programme, participation of Ministers, MLA's Local representatives, Department Heads, Media and General Public has brought a good public relation to the company.

?The newly constructed substations at Puttur and Subrahmanya were inaugurated by Energy Minister. The Ministers, MLA's, consumers and the general publics were participated.

?The District wise HT & EHT consumers meet arranged in Mangaluru, Udupi, Shivamogga, Chikkamagaluru. The programme helped to build a good relationship between the consumers and the company.

?The Mega Solar Camp was arranged in Mangaluru with a intension to guide the consumers in installing the Solar rooftop units and was a grand success.

Internal Communication activities:

?An Orientation programme was arranged in Mangaluru for the newly recruited employees like ALMs, Station Attendents, AAO's and AE's/JE's. The Hon'ble Energy Minister, Managing Director KPTCL & Chairman MESCOM, Senior Officers of KPTCL, Managing Director, PCKL, and Directors of MESCOM were participated.

?Kannada Rajyothsava: Kannada Rajyothsava programme was arranged in a grand manner. The officers and employees actively participated and it helped to bonding the employees and management relationship. In the programme the employees were staged many cultural programmes. Company had provided a good opportunity for the employee to exhibit their talents.

?The National festivals are being celebrated in the company in a meaningful way.

22 ANNUAL REPORT 2016-17

?The New Year greetings, Diary and Calendars were distributed among the officers and staff.

?Felicitation programme to the retired employees of the company is being arranged by honouring them with a Silver Memento worth ` 10,000/-. During the financial year 88 retired employees were felicitated along with their family members. This meaningful programme was appreciated by all.

21. Internal Audit in MESCOM

The Internal Audit Wing of MESCOM is headed by Controller (Internal Audit), and reporting directly to the Managing Director of the Company. The Revenue Audit, Voucher Audit, Cash Audit, Store Audit, Audit of Power Purchase Bills, Audit of Pensionary benefits to the C & D group employees of MESCOM and KPTCL employees in MESCOM Jurisdiction and day to day pre and post audit are the regular function of Internal Audit. Also on need basis, the special inspections are independently carried out by the Internal Audit Officers and Staff of the Company. The Tender documents, Technical price bids, LOIs, Work Awards and Purchase Orders placed at Divisional, Circle, Zonal level and Corporate office level are being verified by the Internal Audit in the respective offices. The working strength of the Internal Audit MESCOM is as follows.

CA Accounts Asst. Account Senior Assistant Total Name of the Officer Officer Assistant Division S W V S W V S W V S W V S W V S W V Corporate Office 1 1 - 1 1 - 1 - 1 1 - 1 1 - 1 5 2 3

Mangaluru Circle - - - 4 4 - 4 - 4 8 5 3 4 - 4 20 9 11

Udupi Circle - - - 2 1 1 2 1 1 3 1 2 - - - 7 3 4

Shivamogga Circle - - - 4 4 - 4 1 3 9 7 2 1 - 1 18 12 6

Chikkamagaluru Circle - - - 2 2 - 3 - 3 4 3 1 - - - 9 5 4

Total 1 1 - 13 12 1 14 2 12 25 16 9 6 - 6 59 31 28

The Revenue Ledgers maintained in the Sub-Divisions and Accounting Section is audited as per Action Plan by concerned Divisional Assistant Accounts Officer (IA) and Senior Assistants (IA). Depending upon the requirement and availability, the services of Rtd. Senior Assistants are also utilized on contract basis during the period to audit the Revenue Ledgers of LT-2 & LT-3 Tariff Category. Further, the services of B.Com Graduates who have knowledge in auditing have been obtained on contract basis in Mangaluru-1, Kavoor, Puttur, Bantwal, Kundapura, Bhadravathi, Sagar, Shikaripura, Chikkmagaluru and Kadur Divisions. Their services are utilized to audit the Revenue Ledgers of Power installations of LT-2 & LT-3 Tariff category. Audit functions are being continuously carried out as per approved Action Plan. The overall performance of Internal Audit is being reported to the Managing Director on the basis of information obtained from the Accounts Officers of Internal Audit every month. The meetings of the Accounts Officers of Internal Audit are being held at every quarter in which the progress is reviewed and action plan of audit will be monitored periodically so as to have effective control in audit programme and also to have efficiency in auditing.

23 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

22. Vigilance Activities in MESCOM 1. As per the Electricity Act 2003, Vigilance Police Stations are working in MESCOM, headed by Superintending Engineer (Ele) Commercial, who is assisted by Executive Engineer of Vigilance in technical matters. Deputy Superintendent of Police is assisting in police matters. 2. Assistant Executive Engineers (Ele.) / Police Sub Inspectors are working in each District and are assisted by / Head Constables / Police Constables. 3. Under section 126 and 135 of Electricity Act 2003, non- cognizable and cognizable cases are booked in MESCOM vigilance police stations. 4. Cases booked under section 135 are admitted only in special courts. 5. Statement showing the progress of vigilance activities for the year 2016-17 is furnished below.

No. of Demand Recovery cases ) ) ) ` ` booked `

) ) ) ) ` ` `) olice station ` ` Sl.No. in MU otal amount otal Cases T otal Recovery (Amount in T (Amount in (Amount in T Compound raised otal units pilfered iolation cases iolation cases (Amount in (Amount in T iolation cases Compounding V Cog. Cases V (Amount in (Amount in (Amount in V Cognizable cases Name of the P Cognizable cases No. of installations checked

1 Mangaluru 10185 4554 21 4575 1542950 15617738 724077 274000 16615815 8743881 702229 265000 9711110

2 Shivamogga 4161 504 52 556 6626437 41497502 298584 264000 42060086 25378170 263957 256000 25898127

3 Chikkamagaluru 2485 535 52 587 7797750 39917719 444282 663000 41025001 2282285 820882 624000 3727167

4 Udupi 5627 210 8 218 290752 3056758 128451 48000 3233209 1877485 116170 48000 2041655

TOTAL 22458 5803 133 5936 16257889100089717 1595394 1249000 102934111 38281821 1903238 1193000 41378059

23. Implementation of Right to Information Act 2005 in MESCOM 1. The details of PIO's, APIO's and respective Appellate Authorities have been notified and updated in MESCOM website www.mesco.in under the caption Right to Information Act in home page and the details are also made available to the general public in the respective offices. 2. During 2016-17, 2667 No.s of Applications including 197 Applications from BPL Citizens have been received seeking information under RTI act 2005 across the Company, for which ` 44, 102/- has been collected towards the application fee and charges for furnishing information. During the year 2651 No.s of request for information were attended within the time limit & 8 No.s of request were disposed off after the time limit. Remaining 8 No.s of applications are pending. Further, during 2016-17, 32 No.s of Appeals received. 32 No.s of Appeals were disposed off within the time limit. 24. Particulars as per Companies (particulars of employees) Rules, 1975 and as amended: None of the employees of the Company was in receipt of remuneration more than ` 8,50,000/- and above per month during the financial year under review. 25. Appointment of Cost Auditors: The Ministry of Corporate Affairs, GoI vide No.52/62/CAB-2008 dated 4th Feb.2008 has directed the Cost Audit of cost accounts maintained by the Company in respect of the financial year ending 31.03.2008 and for every financial year thereafter continuously to be conducted by an Auditor with

24 ANNUAL REPORT 2016-17

qualifications prescribed in section 233 (B) of the Companies Act, 1956. Accordingly, M/s. Rao Murthy & Associates, Cost Accountants, Bengaluru- 560004 have been appointed as the Cost Auditors of the Company for the FY 2007-08 and onwards. The details of Cost Audit Reports filed with GoI are as under:

Financial Year Due date to Submit Report Date of Submission of Report 2007-08 30.09.2008 30.09.2008 2008-09 30.09.2009 08.12.2009 2009-10 30.09.2010 29.09.2010 2010-11 30.09.2011 04.11.2011 2011-12 30.09.2012 10.01.2013 2012-13 30.09.2013 26.12.2013 2013-14 30.09.2014 27.09.2014 2014-15 30.09.2015 29.09.2015 2015-16 30.09.2016 27.10.2016

26. Secretarial Audit In Pursuant to Section 204(1) of the Companies Act, 2013 and Rule no.9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Secretarial Auditor M/s Ullas Kumar Melinamogaru & Associates, Mangaluru was appointed as Secretarial Auditor for conducting Secretarial Audit for FY 2016-17 as per the authorization of the Board vide Board Resolution No. 66/25. The Report of the Secretarial Audit has been enclosed here with vide Annexure-1 and the replies of the Management are enclosed here with vide Annexure-2. 27. Board of Directors (A)

Sl. No. Shriyuths/Smt., Particulars 1. Jawaid Akhtar IAS Chairman from 27.05.2015 2. Chikkananjappa Managing Director from 25.06.2014 To 22.08.2017 3. K. Ramakrishna Director (Tech) from 27.04.2015 To 21.08.2017 and reported as Managing Director on 23.08.2017 4. Ananda Naik Director (Tech) from 15.09.2017 5. Dr. Aditi Raja IA &AS Director from 24.09.2008 6. A.N. Jayaraj Director from 07.04.2015 7. M. Nagaraju Director from 17.12.2008 to 13.06.2017 8. T.R.Ramakrishnaih Director from 14.08.2017 9. P.I Sreevidya IAS Director from 07.05.2016 to 07.06.2017 10. H. Nagesh Director from 22.04.2017 11. Prachi Pandey IA &AS Director from 07.05.2016 to 14.09.2017 12. Dr. R. C. Chethan IRS Director From 14.09.2017 13. C Adinarayana Director from 06.09.2016 to 07.06.2017 14. H. Thimmegowda Director from 22.04.2017 15. M.D. Ravi Director from 07.05.2016 16. Sanjeeva Shetty Director from 07.04.2016 17. Surendra B. Kambaly Director from 7.4.2016

25 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Sl. No. Shriyuths/Smt., Particulars 18. B.V. Jayaram Director from 7.4.2016 19. Riyaz Ahmad Director from 7.4.2016 20. Mallika P. Pakkala Director from 7.4.2016 21. P.V. Abhilash Director from 7.4.2016 22. Sudhir Kumar Director from 7.4.2016 23. Sadashiva Ameen Director from 7.4.2016 24. K.M Krishnappa Director from 7.4.2016 25. R. Mohan Director from 20.7.2016

The Board places on record its sincere appreciation and gratitude of the services rendered by the outgoing Directors.

(B) Board Sub Committees :

(I) Purchase Committee: 1. Managing Director, MESCOM, Mangaluru Chairman 2. Director (Technical), MESCOM, Mangaluru Member 3. Nominee director from KPTCL Member (ii) Audit Committee: 1. Director (Finance), KPTCL, Bengaluru Chairperson 2. Director (Technical), MESCOM, Mangaluru Member 3. Nominee director from Finance Dept. Member 4. Nominee director from Energy Dept. Member (iii) Corporate Social Responsibility Committee: 1. Director (Technical), MESCOM, Mangaluru Chairman 2. Chief Engineer (Elecl), KPTCL, Hassan Member 3. Nominee director from KPTCL Member

26 ANNUAL REPORT 2016-17

C) Meetings of the Board and Board Sub-Committees

i) Board meetings 61st Meeting 14.06.2016 62nd Meeting 02.08.2016 63rd Meeting 27.10.2016 4 64th Meeting 22.02.2017 ii) Purchase Committee meetings 63rd Meeting 27.06.2016 64th Meeting 17.09.2016 65th Meeting 04.11.2016 5 66th Meeting 23.01.2017 67th Meeting 06.03.2017 iii) Audit Committee meeting 1 22nd Meeting 01.08.2016 iv) Corporate Social Responsibility (CSR) meeting 1 3rd CSR Meeting 27.10.2016

D) MESCOM Directors Attendance of Meetings for 2016-17

61st 62nd 63rd 64th 22nd 3rd 63rd 64th 65th 66th 67th BM BM BM BM AC CSR PC PC PC PC PC Name of the Sl. Director No. Shriyuths/Smts. 1.8.16 6.3.17 2.9.16 7.9.16 22.2.17 23.1.17 14.6.16 27.6.16 4.11.16 27.10.16 27.10.16 1 Jawaid Akhtar IAS P P P P ------2 Chikkananjappa P P P P - - P P P P P 3 K. Ramakrishna P P P P P P P P P p P 4 Dr. Aditi Raja P P P P P P - - - - - 5 Prachi pandey - - P P ------6 P.I Sreevidya P ------7 B.C Honnegowda P P - - - - P - - - - 8 C. Adinarayana - - P - - P - P P P P 9 M.D Ravi P - P P ------10 A.N. Jayaraj P P P P ------11 M. Nagaraju P P P P ------12 S. Sanjeeva Shetty P P P P ------13 Surendra B Kambaly P P P P ------14 B.V. Jayaram P P P P ------15 Riyaz Ahmad P P P P ------16 Mallika P Pakkala P P P P ------17 Abhilash P.V P - - P ------18 Sudhir Kumar P P P P ------19 J.Sadashiva Ameen P P P P ------20 K.M Krishnappa P P P P ------21 R. Mohan - P P P ------

P : Present, A : Absent BM : Board Meeting, PC: Purchase Committee, AC: Audit Committee, CSR: Corporate Social Responsibility Committee.

27 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

(E) General Meetings: The Fourteenth Annual General Body Meeting of the Company was held at the Registered Office of the Company on 27th October 2016 for consideration and adoption of accounts of the year 2015-16. (F) Corporate Social Responsibility (CSR) [Pursuant to clause (o) of sub-section (3) of section 134 of the Act and Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014] 1. A brief outline of the Company's CSR policy: ?To direct CSR programs of MESCOM towards one or more of the following- promotion of education, preservation and enhancement of environmental and natural capital, promotion of sports, contributing to development and relief funds of government, contributing to the welfare of schedule castes and the scheduled tribe and other backward classes and minorities, promoting gender equality and women empowerment, promoting healthcare in rural areas, promotion of cultural activities. ?To engage in activities such as skill development, vocational training so as to enhance employability of persons from different sections of society. ?Adopt approaches that contribute towards achieving balanced socio-economic development of the society. ? To carry out CSR programs to full fill commitments arising from requests by government 2. The Board has re constituted a Corporate Social Responsibility Committee comprising Director (Technical), MESCOM, Chief Engineer (Elecl), KPTCL, Hassan and Nominee director from KPTCL. 3. The Average net profit of the Company for the last three financial year: ` 7,51,25,004/- 4. Prescribed CSR Expenditure (two per cent of the amount as in item 3 above): ` 15,02,500/- 5. Details of CSR spent during the financial year: (I) Total amount to be spent for the financial year: ` 30,64,043/- (ii) Amount unspent, if any: ` Nil (iii) Manner in which the amount spent during the financial year is detailed below:

Sl. CSR project Sector in Projects or Amount Amount spent Cumulative Amount No. or activity which the programs outlay on the projects expenditure spent Direct identified Project is (1) Local (budget) or programs upto to the or through covered area or other project or Sub - heads: reporting implementing (2) Specify the programs 1.Direct period agency State and district wise expenditure on (in `) where projects (In `) projects or or programs was programs undertaken 2. Overheads 1 2 3 4 5 6 7 8 a Contribution to Protection - - - 400000 Shivarama of Natural Karantha Pilikula Resource Nisargadhama b Sponsership to the Promotion - - - 200000 Symposium of Education Organised by NIEIT, Mysuru c Consumer Education - - - 2464043 Education TOTAL 3064043

28 ANNUAL REPORT 2016-17

6. The Corporate Responsibly Committee 3rd Meeting has approved to incur the required expenditure to meet the Corporate Responsibly obligation during the FY 2016-17. 7. Responsibility Statement : The CSR Committee hereby confirms that the implementation and monitoring of CSR Policy is in compliance with CSR objectives and Policy of the Company. 28. Annual Return Extract of Annual Return pursuant to the provisions of section 92 furnished in Annexure-3 (Form MGT-9) 29. Directors' Responsibility Statement: Pursuant to Section 134(5) 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 have been followed along with proper explanation relating to material departures; ii. accounting policies have been selected and applied consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company 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 company and for preventing and detecting fraud and other irregularities; iv. Annual Accounts have been prepared for the Financial Year ended March 31, 2017 on a going concern basis. 30. 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, Central Electricity Regulatory Commission, Karnataka Electricity Regulatory Commission, Karnataka Power Transmission Corporation Ltd., Karnataka Power Corporation Ltd., & Power Company of Karnataka Ltd., for their assistance, guidance and co-operation. ?Financing agencies, such as Rural Electrification Corporation, Power Finance Corporation, Syndicate Bank, State Bank of Mysore, Canara Bank, Corporation Bank, Vijaya Bank, State Bank of India, Punjab & Sindh Bank, Indian Bank, Axis Bank, Karnataka Bank, Central Bank of India and Union Bank of India for their financial support. ?The media for publicity and creating awareness among the public. ?The Statutory Auditors and Cost Auditors for their guidance and support. ?All the agencies associated with the computerisation of billing. ?The Employees, Employees' Union and other Associations of employees for their co-operation and collective participation.

?The Suppliers, Contractors and Consultants for their co-operation.

Place : Mangaluru Sd/- Date : 18.09.2017 Chairman

29 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Annexure -1

Form No. MR-3

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2017

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

To,

The Members, MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED Mescom Bhavana Bejai, Kavoor Cross Road, Mangalore-575 004.

I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Mangalore Electricity Supply Company Limited (hereinafter called “the Company”). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.

Based on my 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, I hereby report that in my 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:

I have examined the books, papers, minute books, forms and returns filed and other records maintained by Mangalore Electricity Supply Company 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 thereunder;

II. The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules made thereunder is not applicable to the Company as it is an Unlisted Public Company

III. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder is not applicable to the Company as it is an Unlisted Public Company;

IV. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings is not applicable to the Company;

V. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 ('SEBI Act') is not applicable to the Company as it is an Unlisted Public Company:-

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

30 ANNUAL REPORT 2016-17

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

c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;

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;

vi) Following other laws applicable to the Company.

a. Electricity Act, 2003

b. Contract Labour (Regulation and Abolition)Act, 1970

c. Payment of Wages Act, 1936

d. Industrial Disputes Act, 1947

e. Employees State Insurance Act, 1948

f. Maternity Benefit Act, 1961

g. Minimum Wages Act, 1948

h. Payment of Bonus Act, 1965

i. Payment of Gratuity Act, 1972

j. Provisions of Environment (Protection) Act, 1986

k. The Water( Prevention and Control of Pollution)Act, 1974 and

l. The Air (Prevention and Control of Pollution) Act, 1981 and rules made there under. I have also examined compliance with the applicable clauses of the following:

i. Secretarial Standards issued by The Institute of Company Secretaries of India.

ii. The Listing Agreements entered into by the Company with the Stock Exchanges does not apply to the Company as it is an Unlisted Public Company.

During the period under review the Company has generally complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above subject to the following observations:

a. The Company has not appointed an Internal Auditor as per Section 138 of the Companies Act, 2013, but there is an Internal Audit wing as a part of controlling mechanisms of the Organization. Controller (Internal Audit) is the head of the Internal Audit wing.

b. The Company has not constituted Nomination and Remuneration committee as required under Section 178 of the Companies Act 2013.As it is a Government Company all the Appointments and Remunerations thereof are decided by the Government of Karnataka.

31 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED c. In accordance with Section 177(10) of the Companies Act, 2013, the Company has to disclose the details of establishment of vigil mechanism in the website. However no such disclosure has been made in the website. d. The Company has not appointed a Company Secretary as required under Section 203(1) of the Companies Act 2013. e. The Company has appointed Mr. Jawaid Akhtar as the Chairman of the Board. However no form DIR-12 has been still filed in this regard. This was also reported in the last Secretarial Audit Report. f. The Company has not filed the Form DIR-12 for the intimation of Appointment of Independent and Nominee Director appointed by the Government vide notification dated 07.05.2016 namely Dr. Aditi Raja, M. Nagaraju, and A.N. Jayaraj. g. The Fixed Assets Register maintained by the Company does not show full particulars such as asset identification number and its situation. h. The Company has accepted the share application money, however it remains unallotted for a period of over 60 days or allotted after the period of 60 days from the receipt of money, which is not in accordance with the Companies (Acceptance of Deposit) Rules, 2014. The Company has obtained share application advance which remains to be allotted worth ` 14,00,00,000/-

I. The Share Certificate pending to be issued to the Government of Karnataka even though share allotment completed worth ` 91,71,00,000/- j. Resolution for Approval of the Board's Report for the Financial Year 2015-16 was not filed in MGT-14, though MGT-14 has been filed for Approval of Annual Accounts for the said Financial Year.

I further report that

The Board of Directors of the Company is duly constituted consisting of Executive Directors and Independent Directors on its Board for the Financial Year ended 31st March 2017. 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 and were given atleast seven days in advance except in one case wherein the Notice was given at a shorter period, agenda and detailed notes on agenda were not usually sent at least seven days in advance, but the consent for the shorter notice was obtained from the Directors entitled to attend the Board Meeting as per Section 173(3) of the Companies Act, 2013.

The 14th Annual General Meeting of the Company was held on Thursday 27th October, 2016 though as per the provisions of the Companies Act, 2013 the Annual General Meeting of the Company is to be held within 6 months from the date of closing of the Financial Year that is on or before 30th September, 2016. The Company has filed Form GNL-1 with ROC, Karnataka, Bangalore for extension of the date of Annual General Meeting stating the reasons of non-receipt of the Test Audit Report from the Comptroller and Auditor General of India and the extension has been granted on 28.09.2016 by Registrar Of Companies, Karnataka, Bangalore.

The Annual General Meeting of the Company was held with the shorter notice but the consent for the shorter notice was obtained by the Company as per Section 101(1) of the Companies Act, 2013.

I 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 subject to the observation that has already been made by the Statutory Auditors in their Report.

32 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

I further report that during the audit period the Company has allotted 9,17,10,000 shares of ` 10/- each vide Board Resolution dated 22.02.2017 to Government of Karnataka.

I further report that during the audit period, the Company does not have specific events / actions having a major bearing on the company's affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc. referred to above

For Ullas Kumar Melinamogaru & Associates Practising Company Secretaries

Sd/- CS Ullas Kumar Melinamogaru Proprietor FCS 6202, CP No. 6640

Date : 24th August, 2017 Place : Mangaluru

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.

33 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Annexure - A

To,

The Members, Mangalore Electricity Supply Company Limited, Mescom Bhavana Bejai, Kavoor Cross Road, Mangalore-575 004. 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. My responsibility is to express an opinion on these Secretarial Records based on my audit. 2. I 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 that correct facts are reflected in Secretarial Records. I believe that the processes and practices, I followed provide a reasonable basis for my opinion. 3. I have not verified the correctness and appropriateness of Financial Records and Books of Accounts of the company. 4. Where ever required, I have obtained the Management Representation about the compliance of laws, rules and regulations and happening of events etc. 5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management. My examination was limited to the verification of procedures on test basis. 6. The Secretarial Audit Report is neither an 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.

For Ullas Kumar Melinamogaru & Associates Practising Company Secretaries Sd/- CS Ullas Kumar Melinamogaru Proprietor FCS 6202, CP No. 6640

Date : 24th August, 2017 Place : Mangaluru

34 ANNUAL REPORT 2016-17

Annexure -2 Management Replies to the observations of Secretarial Auditors [M/s Ullas Kumar Melinamogaru & Associates, Practicing Company Secretary, Mangaluru] in their report for 2016-17

Observations Management reply

1. The Company has not appointed an Internal Company has already formed separate Internal Auditor as per Section 138 of the Auditors wing in its first Board meeting, which is Companies Act, 2013, but there is an headed by controller (IA) to carry out regular Internal Audit wing as a part of controlling audit and special investigation. mechanisms of the Organization. Controller (Internal Audit) is the head of the Internal Audit wing.

2. The Company has not constituted Whole time directors are appointed by Govt. of Nomination and Remuneration committee Karnataka and the officials are given their scale of as required under Section 178 of the pay in the parent department / organization - Companies Act 2013. As it is a Government hence no role for such committee. Company all the Appointments and Remunerations thereof are decided by the Government of Karnataka.

3. In accordance with Section 177(10) of the There is an audit committee, internal audit and Companies Act, 2013, the Company has to vigilance organization which provide a forum to disclose the details of establishment of vigil report grievances. As per the section 177(10) the mechanism in the website. However no information about audit committee, internal audit such disclosure has been made in the and vigilance are disclosed in the Board's report. website.

4. The Company has not appointed a The recruitment process is under progress. Company Secretary as required under Efforts were made in the past also. However due Section 203(1) of the Companies Act 2013. to non-availability of suitable candidate, again efforts are being made. Efforts are being made by the company constantly.

5. The Company has appointed Mr. Jawaid Notification of the Chairman as Independent Akhtar as the Chairman of the Board. directors was issued subsequently and the same However no form DIR-12 has been still filed could not be uploaded in MCA portal due to in this regard. This was also reported in the software/ system constraints. last Secretarial Audit Report.

6. The Company has not filed the Form DIR-12 The directorship of three directors namely for the intimation of Appointment of Dr. Aditi Raja, M. Nagaraju, and A.N. Jayaraj is Independent and Nominee Director not withdrawn by GoK, and is continuing till date. appointed by the Government vide Hence it is not necessary to file DIR-12 ones notification dated 07.05.2016 namely again. Dr. Aditi Raja, M. Nagaraju, and A.N. Jayaraj.

7. The Fixed Assets Register maintained by the Owing to the particular nature of power Company does not show full particulars distribution business, it has not been possible

35 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Observations Management reply

such as asset identification number and its allot asset identification number to all assets of situation. the company. However, Fixed asset register maintained at the division office give particulars about the nature of assets, year of installation etc. 8. The Company has accepted the share ` 14.00Crs is the MESCOM's share of allocation application money, however it remains given by GoK out of total payment of ` 70 Crs unallotted for a period of over 60 days or made to M/s Jurala Power Project through allotted after the period of 60 days from the M/s PCKL as an Investment in Power Utilities for receipt of money, which is not in accordance consideration at the time of filing of power tariff with the Companies (Acceptance of before CERC. As there is no specific direction as Deposit) Rules, 2014. The Company to issue of shares to GoK, correspondence with has obtained share application advance regard to issue of shares is in progress. Further, which remains to be allotted worth under section 2(31) of the Companies Act, ` 14,00,00,000/- deposit does not include any amount received from a State Govt and hence could not attract the provision of the Companies Acceptance of Deposit Rules 2014.

9. The Share Certificate pending to be issued The Share Certificate is Issued for share to the Government of Karnataka even allotment completed worth ` 91,71,00,000/-, and though share allotment completed worth the share certificate number is 21. ` 91,71,00,000/-.

10. Resolution for Approval of the Board's Since resolution for approval of annual accounts Report for the Financial Year 2015-16 was for the Financial Year 2015-16 and the approval not filed in MGT-14, though MGT-14 has of the Board's Report is accorded in the same been filed for Approval of Annual Accounts resolution, both issues are filed in one MGT -14. for the said Financial Year.

36 ANNUAL REPORT 2016-17

Annexure -3 FORM NO. MGT 9 EXTRACT OF ANNUAL RETURN

As on financial year ended on 31.03.2017

Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration) Rules, 2014.

I. REGISTRATION & OTHER DETAILS:

1. CIN U40109 KA 2002 SGC 030425 2. Registration Date 29/04/2002 3. Name of the Company MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED 4. Category/Sub-category of PUBLIC LIMITED the Company 5. Address of the Registered MESCOM BHAVANA, office & contact details KAVOOR CROSS ROAD,BEJAI MANGALORE-575004. Tel:0824-2885700 6. Whether listed company NO 7. Name, Address & contact details of the Registrar & ___ Transfer Agent, if any.

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (All the business activities contributing 10 % or more of the total turnover of the company shall be stated)

Sl. No. Name and Description of NIC Code of the % to total turnover of the main products / services Product/service company 1 ELECTRICITY 35109/Distribution of power 100% to Domestic/Commercial & industrial usage

III. PARTICULARS OF HOLDING , SUBSIDIARY & ASSOCIATE COMPANIES Subsidiary Company- NIL CIN: -NA-

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) Category-wise Share Holding

37 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

No. of Shares held at the beginning No. of Shares held at the end of the % Change of the year [As on 31-March-2016] year [As on 31-March-2017] Category of during shareholders % of Total % of Total the year Physical Total Physical Total Shares Shares

A. Promoters (1) Indian a) Individual/ HUF ------b) Central Govt ------c) State Govt(s) 266360231 266360231 100% 358070231 358070231 100% – d) Bodies Corp. ------e) Banks / FI ------f) Any other ------Total shareholding of Promoter (A) 266360231 266360231 100% 358070231 358070231 100% - B. Public Shareholding ------1. Institutions ------a) Mutual Funds ------b) Banks / FI ------c) Central Govt ------d) State Govt(s) ------e) Venture Capital Funds ------f) Insurance Companies ------g) FIIs ------h) Foreign Venture Capital Funds ------I) Others (specify) ------Sub-total (B)(1) :------2. Non-Institutions ------a) Bodies Corp. ------i) Indian ------ii) Overseas ------b) Individuals ------i) Individual shareholders holding nominal share capital upto ` 1 lakh ------ii) Individual shareholders holding nominal share capital in excess of ` 1 lakh ------c) Others (specify) ------Non Resident Indians ------Overseas Corporate Bodies ------Foreign Nationals ------Clearing Members ------Trusts ------

38 ANNUAL REPORT 2016-17

No. of Shares held at the beginning No. of Shares held at the end of the Category of of the year [As on 31-March-2016] year [As on 31-March-2017] % Change during shareholders % of Total % of Total Physical Total Physical Total the year Shares Shares

Foreign Bodies-DR ------Sub-total (B)(2):------Total Public Shareholding (B)=(B)(1)+ (B)(2) ------C. Shares held by Custodian for GDRs & ADRs ------Grand Total (A+B+C) 266360231 266360231 100% 358070231 358070231 100% -

B) Shareholding of Promoter- Shareholders Shareholders at the beginning Shareholders at the end of the Name of the year year % Change in Sriyuths / Smt No. of % of Total % of Shares No. of % of Total % of Shares Shares Shares Pledged / Shares Shares Pledged / shareholding of the encumbered of the encumbered during Company to total Company to total the year shares shares 1 His Excellency Governor Of Karnataka 266360222 100 - 358070222 100 - - 2 Jawaid Akthar 1 - - 1 - - - 3 Chikkananjappa 1 - - 1 - - - 4 Dr. Aditi Raja 1 - - 1 - - - 5 ISN Prasad 1 - - 1 - - - 6 K Ramakrishna 1 - - 1 - - - 7 Dr. Ashok D.R. 1 ------8 H Nagesh - - - 1 - - - 9 A.B. Ibrahim 1 ------10 Dr. K.G Jagadish - - - 1 - - - 11 G.N. Yadravi 1 ------12 M. D Ravi - - - 1 - - - 13 M. Srinivasmurthy 1 ------14 Javid Rubbani - - - 1 - - -

C) Change in Promoters' Shareholding (please specify, if there is no change) – There was no change.

Shareholding at the Cumulative Shareholding Particulars beginning of the year during the year % of Total Shares % of Total Shares No. of Shares No. of Shares of the company of the company At the beginning of the year 266360231 74.39 266360231 100 Date wise Increase / Decrease in (1) Share of 25.61 91710000 - Promoters Shareholding during the year ` 10 each allotted specifying the reasons for increase / in favour of GoK decrease (e.g. allotment /transfer / vide 64th meeting bonus/ sweat equity etc.) of the Board dated 22.02.2017 At the end of the year 100 358070231 100

39 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

D) Shareholding Pattern of top ten Shareholders: (Other than Directors, Promoters and Holders of GDRs and ADRs):

Shareholding at the Cumulative Shareholding For Each of the Top 10 beginning of the year during the year Shareholders % of Total Shares % of Total Shares No. of Shares No. of Shares of the company of the company At the beginning of the year As at Item IV (B) Date wise Increase / Decrease in “ Promoters Shareholding during the year specifying the reasons for increase / decrease (e.g. allotment / transfer / bonus/ sweat equity etc): At the end of the year “

E) Shareholding of Directors and Key Managerial Personnel:

Shareholding at the Cumulative Shareholding Shareholding of each Directors beginning of the year during the year and each Key Managerial % of Total Shares % of Total Shares Personnel No. of Shares No. of Shares of the company of the company At the beginning of the year - - - - Date wise Increase / Decrease in - - - - Promoters Shareholding during the year specifying the reasons for increase / decrease (e.g. allotment / transfer / bonus/ sweat equity etc): At the end of the year - - - -

V) INDEBTEDNESS - Indebtedness of the Company including interest outstanding/accrued but not due for payment. (` in Crs.) Secured Unsecured GoK Deposits Total Loans Loans Loans Indebtendness Particulars excluding deposits Indebtedness at the beginning of the financial year i) Principal Amount 474.24 1.51 1.62 467.44 944.81 ii) Interest due but not paid 2.63 - - - 2.63 iii) Interest accrued but not due 1.83 0.01 - - 1.84 Total (i+ii+iii) 478.70 1.52 1.62 467.44 949.28 Change in Indebtedness during the financial year * Addition 153.00 - - 52.37 205.37 * Reduction 80.92 1.51 0.36 - 82.79 Net Change 72.08 -1.51 -0.36 52.37 122.58 Indebtedness at the end of the financial year I) Principal Amount 546.32 - 1.26 519.81 1067.39 ii) Interest due but not paid 0.49 - - - 0.49 iii) Interest accrued but not due 0.20 - - - 0.20 Total (i+ii+iii) 547.01 - 1.26 519.81 1068.08

40 ANNUAL REPORT 2016-17

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL- A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

Particulars of Name of MD / WTD / Manager Total Remuneration Managing Director Director (Tec) Director (Tec) Amount Gross salary From 1.4.2016 From 29.4.2016 to 29.4.2016 to 31.03.2017 (a) Salary as per provisions contained in Sri Chikkanajappa Sri.K.Ramakrishna section 17(1) of the Income-tax Act, 1961 ` 1621143 ` 1508257 - ` 3129400 (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - - - © Profits in lieu of salary under section 17(3)- - - Income- tax Act, 1961 Stock Option - - - Sweat Equity - - - Commission - as % of profit - others, specify… - - - Others, please specify - - - Total (A) 1621143 1508257 - 3129400 Ceiling as per the Act

B. Remuneration to other directors

Particulars of Remuneration Name of Directors Total Amount ------Independent Directors - - - - - Fee for attending board committee meetings - - - - - Commission - - - - - Others, please specify - - - - - Total (1) - - - - - Other Non-Executive Directors - - - - - Fee for attending board committee meetings - - - - - Commission - - - - - Others, please specify - - - - - Total (2) - - - - - Total (B)=(1+2) - - - - - Total Managerial Remuneration - - - - - Overall Ceiling as per the Act - - - - -

C. Remuneration to Key Managerial Personnel other than MD / Manager / WTD (in `)

Key Managerial Personnel Particulars of Remuneration - CFO - - Total Gross salary - From 1.4.2016 to - - - 31.3.2017 (a) Salary as per provisions contained in section Sri D. R. Srinivasa - - ` 1713642 17(1) of the Income-tax Act, 1961 - ` 1713642

41 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Key Managerial Personnel Particulars of Remuneration CEO CFO CFO CS Total

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - - - - - (c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 - - - - 2 Stock Option - - - - - 3 Sweat Equity - - - - - 4 Commission ------as % of profit - - - - - others, specify… - - - - - 5 Others, please specify - - - - - Total Rs: 17,13,642 17,13,642

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Section of the Brief Details of Authority Appeal Companies Description Penalty/ [RD/ made, Type Act Punishment/ NCLT/ if any (give Compounding COURT] Details) fees imposed A. COMPANY Penalty - - - - - Punishment - - - - - Compounding - - - - - B. DIRECTORS Penalty - - - - - Punishment - - - - - Compounding - - - - - C. OTHER OFFICERS IN DEFAULT Penalty - - - - - Punishment - - - - - Compounding - - - - -

42 ANNUAL REPORT 2016-17

Addendum to Directors' Report Replies offered on the observations / comments of the Statutory Auditors on the accounts of the Company for the year 2016-17 are as follows:

Sl Statutory Auditor's Observation MESCOM's Replies No. 1. The Company had initially recognized a The actual cost of supply for FY 2016-17 is sum of ` 46,272.91 Lakhs, as income much higher than the cost as approved by from Regulatory Asset which stands Hon'ble KERC in ARR for FY 2016-17, which revised to ` 51,196.93 Lakhs and has resulted in huge gap between income credited to Other Revenue from and expenditure. Hence to present the fair Operations by creating a Regulatory view of the financial statements of the Asset (deferred revenue expenditure) Company, regulatory Assets to the extent of and shown under other current assets. ` 51196.93 Lakhs are created in the (Refer Para 24.7.15(a) of the notes accounts for FY 2016-17 by computing the forming part of the financial provisional gap expected to be considered statements). There is no mandate from by KERC for inclusion in the tariff revision of the Karnataka Electricity Regulatory future year/s. Commission for either recognizing the same as income or creating the asset as stated above. The recognition of income is not in accordance with the Accounting Standard 9 - Revenue Recognition. Further the company has withdrawn from the regulatory asset a sum of ` 5380 Lakhs created during the financial year 2015-16 by reversing Revenue from operations. (Refer Para 24.7.15(a) to Notes to Financial Statements). 2. Items of fixed assets retired from active Factual. use are stated at book value and their Necessary action will be taken to comply value is not tested in comparison to net with the observations in the ensuing years. realizable value. These assets are disclosed under current assets and grouped under Inventories, Stores and Spares under the head WDV of obsolete / scrapped assets. When the asset is reissued, the company has taken its value at the average rate for the asset and not at its WDV. This is not in accordance with the Accounting Standard 10 - Property, Plant and Equipment (PPE). The company has

43 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Sl No. Statutory Auditor's Observation MESCOM's Replies also discontinued providing for depreciation till reissue when the asset has been moved to non Current assets. Further when these fixed assets are reissued again for reuse, they are being taken at the average rate as mentioned above as the base value and depreciated over their original life and not on the remaining useful life. These are not in accordance with the Accounting Standard 10 - Property, Plant and Equipment (PPE).The effect of the same on the financial statements is not quantifiable. 3. Assets scrapped are valued at WDV Majority of the materials held in MESCOM instead of WDV or NRV whichever is Stores are made of Copper or Aluminium or lesser. This is not in accordance with Iron, existing market rates of which are much Accounting Standards 2, Valuation of higher when compared to the rates of Inventories. The effect of this is not purchase. Normally, the Market rate of these ascertainable. materials does not decrease at later dates also i.e., 'Net Realisable Value' is always higher as compared to book value or their procurement cost. As such, it is appropriate to continue the existing procedure of showing the value of scrapped assets at book value. 4. The Company has not accounted for Factual. deferred tax assets / deferred tax Necessary action will be taken to comply liabilities as required by Accounting with the observations in the ensuing years. Standard 22 Accounting for taxes on Income. The effect of this on the financial statements is not as certainable.

5. The Company had been charging In respect of dues payable to KPCL as on Interest on its dues to KPCL as of 31.03.2014, no interest has been charged March 31, 2014 up to Financial Year from FY 2015-16 as it was decided in the 2014-15. From the financial year meeting held on 28.05.2014 at KERC, 2015-16 the Company has not Bengaluru that, GoK has to device a charged interest on its dues to KPCL mechanism for settlement of KPCL dues as as of March 2014. For the Financial on 31.03.2014 and interest accrued there on

44 ANNUAL REPORT 2016-17

Sl No. Statutory Auditor's Observation MESCOM's Replies year 2015-16 and 2016-17 the interest upto 31.03.2014. The same has been amounts to ` 20404.00 Lakhs. brought to the kind information of ACS, Energy Department. Further, MESCOM Board has also concurred in 62nd Board meeting held on 02/08/2016 with the action taken in the matter of non-levying of interest on dues to KPTCL.

6. The Company has an internal audit Company has an Internal Audit Wing system. However, considering the size headed by AO rank working in each of the Company and volume of its accounting division to verify and report any business, we are of the opinion that the shortcoming regarding cash, revenue, work present system requires to be accounts, cost register, material audit, strengthened and audit department inventory and stock records. Further, at needs to be adequately staffed. The Company's Corporate Office, Controller audit system needs to cover Systems (Internal Audit) is monitoring and Audit, technical audit, materials, supervising the work of Internal Audit Wing inventory, stores and compliance and of each Division and rendering periodical adherence to various provisions of Tax reports to management regarding any Laws and Labour Laws in particular. shortcomings observed. Company has an 'in-built' system of internal control for each activity.

7. The Balance of Sundry Debtors, Sundry As disclosed under note 37, the balances in Creditors, Loans and Advances, Other respect of Sundry Debtors, Sundry Receivables and other debit / credit Creditors, Loans and Advances to Suppliers balances are subject to confirmations and other borrowings are subject to and reconciliations. The effect of the confirmation. However the energy balancing adjustment arising from reconciliation dues among the ESCOMs as on 31.03.2017 and settlement of old dues and possible are reconciled. The reconciliation of other loss which may arise on account of non- balances with KPTCL and ESCOMs is under recovery or partial recovery of such process for which due action is taken from dues is not ascertained. The company MESCOM side by intimating the details for also has a practice of booking power the balance. purchase at lesser than the amount Further, action will be taken in the ensuing billed by supplier based either on KERC year to intimate the short bookings etc. to the Notification/Mistakes committed by concerned power suppliers by means of suppliers. However the short bookings debit notes. etc. are not intimated to the suppliers by way of debit note on them (or) obtaining a credit note from them. This could c o m p o u n d t h e p r o b l e m o f reconciliation. Thus we are unable to

45 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Sl No. Statutory Auditor's Observation MESCOM's Replies comment upon the impact thereof on the accounts and profit for the period.

8. The Control account balances as During the balance sheet restructuring reflected by the General Ledger at plan III, a portion of meter security deposit Divisions and Subsidiary Registers at was capitalized as per the direction of the sub-divisions in the matter of Consumer Govt. Though the amount was capitalized, Security Deposits and Meter Security the amount is still outstanding in the Deposits are not fully reconciled. consumers' ledger account. But the meter security deposit as per accounts was reduced to that extent in the accounts of the Company, leading to difference between the balance as per consumers' ledger account maintained at Sub-Divisions and as per accounts of the Division Offices. Further, the deposit registers are being maintained at Sub-divisional / Section levels and the accounts are maintained at divisional levels. The Company has made efforts to reconcile the balances between the deposit registers and accounts during the financial year. Since the task is voluminous, efforts are being made to complete the same.

9. The Fixed Asset Register maintained by Owing to the peculiar nature of power the Company does not show full distribution business, it has not been particulars such as asset identification possible to allot asset identification numbers number and its situation. to all assets of the Company. However, Fixed Asset registers maintained at the Accounting Units will give particulars about the nature of assets, year of installation etc.

10. In the absence of adequate report on The Company carries out physical physical verification of Fixed Assets, we verification of assets situated at power are unable to comment about the station level. Other assets like poles and reasonableness of intervals at which distribution lines could not be physically Fixed Assets have been verified and verified since it is spread throughout the accounting of discrepancies noticed service area. thereon if any.

11. Based on our checking, we report that Action will be taken to reconcile the details the title deeds of Immovable Properties with asset schedule in the ensuing year. are held in the name of the Company. However the title deeds of the

46 ANNUAL REPORT 2016-17

Sl No. Statutory Auditor's Observation MESCOM's Replies

immovable properties of the company do not reconcile with the breakup shown under the fixed assets Schedule.

12. The Company has accepted share Company is having ` 14.00 Crs in Share application advance which either deposit Account as on 31.03.2017 which is remains un alloted for over 60 days or the MESCOM's share of allocation given by was allotted after 60 days from the GoK out of total payment of ` 70 Crs made to receipt, in violation of the Companies M/s Jurala Power Project through M/s PCKL (Acceptance of deposit rules 2014). as an Investment in Power Utilities.

As there is no specific direction as to issue of shares to GoK, correspondence with regard to issue of shares is in progress.

13. According to the information and Factual. Necessary action will be taken to explanations given to us, the company comply with the instructions of guidance has not established its internal financial note in the ensuing years. control over financial reporting on the criteria based on or 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. Because of this reason, we are unable to obtain sufficient and appropriate evidence to provide a basis for our opinion whether the company had adequate internal financial controls over financial reporting and whether such internal financial controls were operating effectively as on March 31, 2017.

Place : Mangaluru Sd/- Date : 27/09/2017 Chairman

47 ANNUAL REPORT 2016-17

INDEPENDENT AUDITORS’ REPORT To the Members of Mangalore Electricity Supply Company Limited On completion of audit of accounts of Mangalore Electricity Supply Company, for the year ended 31st March 2017, we have issued our audit report on the 10thof August 2017. Subsequent to our report, in the light of the observations arising from the audit of Comptroller and Auditor General of India, the Accounts of the Company have been revised . In view of this , we are issuing a fresh Audit report on the revised accounts for the year ended 31.03.2017 . The revised Audit report supersedes our earlier report. REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of Mangalore Electricity Supply Company Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss, the 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. AUDITORS' 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 standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. 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 financial 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 audit opinion on the financial statements.

48 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Basis for Qualified Opinion a) The Company has initially recognized a sum of ` 46272.91 Lakhs as income from Regulatory Asset which stands revised to ` 51,196.93 lakhs and credited to Other Revenue from Operations by creating a Regulatory Asset (deferred revenue expenditure) and shown under other current assets. (Refer Para 24.7.15(a) of the notes forming part of the financial statements). There is no mandate from the Karnataka Electricity Regulatory Commission for either recognizing the same as income or creating the asset as stated above. The recognition of income is not in accordance with the Accounting Standard 9 Revenue Recognition. Further the company has withdrawn from the regulatory asset a sum of ` 5380 Lakhs created during the financial year 2015-16 by reversing Revenue from operations. (Refer Para 24.7.15(a) to Notes to Financial Statements). b) Items of fixed assets retired from active use are stated at book value and their value is not tested in comparison to net realizable value. These assets are disclosed under current assets and grouped under Inventories, Stores and Spares under the head WDV of obsolete / scrapped assets. When the asset is reissued, the company has taken its value at the average rate for the asset and not at its WDV. This is not in accordance with the Accounting Standard 10 - Property, Plant and Equipment (PPE). The company has also discontinued providing for depreciation till reissue when the asset has been moved to non Current assets. Further when these fixed assets are reissued again for reuse, they are being taken at the average rate as mentioned above as the base value and depreciated over their original life and not on the remaining useful life. These are not in accordance with the Accounting Standard 10 - Property, Plant and Equipment (PPE). The effect of the same on the financial statements is not quantifiable. c) Assets scrapped are valued at WDV instead of WDV or NRV whichever is lesser. This is not in accordance with Accounting Standards 2, Valuation of Inventories. The effect of this is not ascertainable. d) The Company has not accounted for deferred tax assets / deferred tax liabilities as required by Accounting Standard 22- Accounting for taxes on Income. The effect of this on the financial statements is not ascertainable. e) The Company had been charging Interest on its dues to KPCL as of March 31, 2014 up to Financial Year 2014-15. From the financial year 2015-16 the Company has not charged interest on its dues to KPCL as of March 2014. For the Financial year 2015-16 and 2016-17 the interest amounts to ` 20404 Lakhs . The cumulative effect of the above is not ascertainable. Further to the above, I) The Company has an internal audit system. However, considering the size of the Company and volume of its business, we are of the opinion that the present system requires to be strengthened and audit department needs to be adequately staffed. The audit system needs to cover Systems Audit, technical audit, materials, inventory, stores and compliance and adherence to various provisions of Tax Laws and Labour Laws in particular. II) The Balance of Sundry Debtors, Sundry Creditors, Loans and Advances, Other Receivables and other debit / credit balances are subject to confirmations and reconciliations. The effect of the adjustment arising from reconciliation and settlement of old dues and possible loss which may arise on account of non-recovery or partial recovery of such dues is not ascertained. The company also has a practice of booking power purchase at lesser than the amount billed by supplier based either on KERC Notification/Mistakes committed by suppliers. However the short bookings etc. are not intimated to the suppliers by way of debit note on them (or) obtaining

49 ANNUAL REPORT 2016-17

a credit note from them. This could compound the problem of reconciliation. Thus we are unable to comment upon the impact thereof on the accounts and profit for the period. III) The Control account balances as reflected by the General Ledger at Divisions and Subsidiary Registers at sub-divisions in the matter of Consumer Security Deposits and Meter Security Deposits are not fully reconciled. The Company had prepared its balance sheet as at 31.03.2017 and the statement of Profit and loss for the year ended as on that date together with cash flow statement which was approved by the Board of Directors of the Company on 10.08.2017 and was forwarded to us for our report thereon and we had issued our report on 10.08.2017. Thereafter, the accounts of the Company have been reviewed by Comptroller and Auditor General of India and have been revised in the light of observation made by them. The said revision has resulted in decrease in net profits by ` 12.77 lakhs ; decrease in the reserves and surplus by ` 12.77 lakhs ; increase in Other long term liabilities by ` 1639.77 lakhs ; increase in Trade payables by ` 21.27 lakhs ;increase in Other Current liabilities by ` 69.12 lakhs ; increase in Tangible Assets by ` 53.87 lakhs ;decrease in Capital work in progress by ` 12.77 Lakhs. ; increase in Inventories by ` 4.35 lakhs ; decrease in Other non current assets by ` 25211.11 Lakhs ; increase in Other current assets by ` 26883.05 lakhs. As a result, the total assets and liabilities have increased by ` 1717.39 lakhs. 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 matter described in the basis for qualified opinion paragraph, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017, and its profit and its cash flows for the year ended on that date. EMPHASIS OF MATTER We draw attention to the following. a) Vide GO no EN 67 PSR 2017 Bangalore dated 31.07.2017, the Company has passed a scheme of Entries for transfer of subsidy receivable from GoK as well as principal and interest outstanding to KPCL from KPTCL's books . As per the order, the Company has accounted subsidy receivable from GOK amounting to ` 7722 lakhs and also accounted dues to KPCL consisting of Principal ( ` 6958 Lakhs ) and interest ( ` 3660 Lakhs) . As mandated in the above order, the Company has also written back the interest component on KPCL dues for ` 3660 lakhs . These apart, as per the order cited above the Company has also accounted a sum of ` 2896 lakhs under the Accounting head “proposed adjustment to Networth” representing the difference between Receivables and payables arising out of the aforesaid transfer under Note 2 “ Reserves and Surplus” as a negative figure. Reference is invited to note 2.2(a) b) Further, while revising the Accounts pursuant to the observations made by the Comptroller and Auditor General of India, the Company has given effect to GO No EN 3 PSR 2016/P3, dated:31.03.2017 by transferring its dues as of 31.03.2015 from Gram Panchayats together with interest upto 31.03.2015 amounting to ` 21959.00 Lakhs to PCKL for securitization of such receivables by PCKL in order to get Loans from Banks and utilize the proceeds of such Loans to clear the Company's dues of KPCL . Though PCKL has expressed inability to account this in their books as of 31.03.2017 vide their letter dated 14.07.2017, the Company has transferred the dues from local bodies as above to PCKL to comply with the GO. Attention is drawn in this regard to note no 24.7.28.(a)

50 50 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Our opinion is not modified 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 in terms of sub section 11 of Section 143 of the Act, we give in the Annexure I, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. 2. As required under the Provisions of section 143(5) of the Companies Act, 2013, we have given in Annexure III , a report on the Directions as well as Additional Company specific Directions issued under the aforesaid section by the Comptroller and Auditor General of India, based on the verification of Records of the Company and based on information and explanations given to us. 3. As required by Section 143(3) of the Act, we report that: a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; b) Except for the possible effects on the matters described in qualified opinion paragraph above, in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account. d) In our opinion, subject to basis for qualified opinion Para stated above, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014; e) As per Notification No.: GSR 463(E) dated 05.06.2015, Government companies are exempted from the provisions of sub section (2) of section 164 of the Companies Act, 2013. f) 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 II and g) 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: The Company has disclosed the impact of pending litigations on its financial position in its financial statements – Refer Note 36.5 to the financial statements. vThe Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts. vThere were no amounts required to be transferred to the Investor Education and Protection Fund by the Company. vThe Company has provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 08.11.2016 to 30.12.2016 and these are in accordance with the Books of Accounts maintained by the Company. For Gopalaiyer and Subramanian Chartered Accountants (Firm Regn No : 000960S) Sd/- (KR Suresh) Place: Mangaluru Partner Date :18/09/2017 Membership No : 025453

51 ANNUAL REPORT 2016-17

ANNEXURE-I TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 of Report on other legal and regulatory requirements of our Audit Report of even date)

In terms of the information and explanations sought by us and given by the company and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we report the following. i). a) The Fixed Asset Register maintained by the Company does not show full particulars such as asset identification number and its situation.

b) In the absence of adequate report on physical verification of Fixed Assets, we are unable to comment about the reasonableness of intervals at which Fixed Assets have been verified and accounting of discrepancies noticed thereon if any.

c) Based on our checking, we report that the title deeds of Immovable Properties are held in the name of the Company. However the title deeds of the immovable properties of the company do not reconcile with the breakup shown under the fixed assets Schedule. ii) The physical verification of inventory has been conducted at reasonable intervals during the year by the management and material discrepancies noticed on physical verification have been properly dealt with in the books of account. iii) The company has not granted loans, secured or unsecured, to companies, firms, LLP's or other parties covered in the register maintained U/s.189 of the Companies Act,2013. In view of this clauses iii (a), iii (b) and iii(c) are not applicable. iv) The Company has not given any given loans / investments / guarantees to which the provisions of Sec 185 and 186 of the Companies Act, 2013 apply. v) The Company has accepted share application advance which either remains unalloted for over 60 days or was allotted after 60 days from the receipt, in violation of the Companies (Acceptance of deposit rules 2014). vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the central government for maintenance of cost records under sub section (1) of section 148 of the companies Act,2013 in respect of distribution of electricity and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have not, however made a detailed examination of the cost records with a view to determining whether they are accurate or complete. vii) The Company has been generally regular in depositing with the appropriate authorities undisputed statutory dues viz., provident fund, employee state insurance, Income-tax, Sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues except the following which were outstanding for a period of more than 6 months from the date they became payable as on the Balance sheet date i.e., 31st March, 2017.

Name of Nature of Amount Period to Due Date Date of Remarks, Statute dues ` which the payment if any amount relates

NIL

52 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED b) According to the information and explanation given to us and the records examined by us, there are no dues of sales tax, customs duty and VAT which have not been deposited on account of any dispute. The particulars of EPF, Service tax, Income Tax which have not been deposited on account of disputes pending are as under:

Nature of Demand Amount paid Year to which Forum where Sl. No payment Raised demand relates dispute is pending

1 EPF of Contract ` 4,44,06,265/- ` 1,77,63,000/- 2007 Case remanded Employees - error back to PF in calculation of Office Mangaluru. demand

2 Tax on Goods Service Tax - Not paid CESTAT Transport Agency ` 45,95,328/- Bengaluru. Services and Penalty ` 45,95,328/-

3 Provident Fund - Interest- Fully paid 2002 to Provident Fund For payment of ` 83,25,618/- 2012 Appellate Interest and Damages Tribunal Damages as per ` 1,06,95,493/- New Delhi section 7Q and 14B.- Mangaluru Division

4 Provident Fund - Interest- Fully paid 01.06.02 Provident Fund For payment of ` 64,36,970/- to 2008 Appellate Interest and Damages Mazdoor Tribunal Damages as per ` 83,43,738/- Gangmen New Delhi section 7Q and 14B.- Puttur Division

5 Provident Fund - Interest- Fully paid LC Work Provident Fund For payment of ` 7,57,961/- 3/06 to Appellate Interest and Damages 7/2013 Tribunal Damages as per ` 3,83,386/- New Delhi section 7Q and 14B.- Shimoga Division

6 Provident Fund - For Interest- Interest- Mazdoor Provident Fund payment of Interest ` 38,28,351/- ` 38,28,351/- Gangmen Appellate and Damages as per Damages Damages 1999-05 Tribunal section 7Q and 14B.- ` 33,77,361/- ` 25,33,021/- New Delhi Sagara Division

7 Provident Fund - For Interest- Fully paid 2002 to Provident Fund payment of Interest ` 65,40,760/- 2010 Appellate and Damages as per Damages Mazdoor Tribunal section 7Q and 14B.- ` 74,99,653/- Gangmen New Delhi Chikmagaluru Division

53 ANNUAL REPORT 2016-17

8 Provident Fund - Interest- Fully paid 08/2006 to Provident Fund For payment of ` 5,99,890/- 3/2010 Appellate Interest and Damages Damages Mazdoor Tribunal as per section ` 11,05,063/- Gangmen New Delhi 7Q and 14B.- Kadur Division

9 Income Tax - in ` 25,61,62,603 Fully paid AY 2006-07 High Court respect of of Karnataka disallowance of 80 IA claim of MESCOM relating to AY 2006-07 viii) Based on our audit procedures, we are of the opinion the company has not defaulted in repayment of dues to banks, financial institutions or Government. ix) The Company has not raised any moneys by initial public offer / further public offer during the year. In our opinion, the moneys raised by way of term loans during the year have been applied for the purposes for which those were raised. x) Based on our audit procedures performed, we report that no material fraud by the company has been noticed or reported during the course of audit. However, one case of misappropriation of cash by an employee involving ` 9.40 Lacs was noticed during the year. Departmental enquiry has been initiated and the Company has a lien on the terminal benefits which will adequately cover the amount involved. Besides there have also been cases of theft of electricity reported by the vigilance department of the company, the amount of which is not quantifiable. xi) The managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by Sec.197 of the Companies Act, 2013 read with Schedule V of the said act. xii) The Company is not a Nidhi Co. and therefore clause 3(12) of the Order is not applicable to the company. xiii) Based on our audit procedures, all the related party transactions entered into by the company during the year are in compliance with the provisions of Sec 177 and 188 of the Companies Act,2013 and the details thereof have been disclosed in the financial statements as required by the Accounting standards and the Act. xiv) The Company has not made any preferential allotment / private placement of shares during the year and therefore clause 3(xiv) of the Order is not applicable to the Company. xv) The company has not entered into any non-cash transactions with directors/persons connected with him as stipulated u/s.192 of the Act. Clause 3(xv) of the order is therefore not applicable to the company. xvi) In our opinion, the Company is not required to be registered u/s 45-IA of the Reserve Bank of India Act, 1934 For Gopalaiyer and Subramanian Chartered Accountants (Firm Regn No : 000960S)

Sd/- (KR Suresh) Place: Mangaluru Partner Date : 18.09.2017 Membership No : 025453

54 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Annexure - II to the Independent Auditors' Report of even date on the financial statements of Mangalore Electricity Supply Company Limited.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of Mangalore Electricity Supply Company Limited (“the Company”) as at 31 March 2017 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's 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

55 ANNUAL REPORT 2016-17

(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.

Opinion

According to the information and explanations given to us, the company has not established its internal financial control over financial reporting on the criteria based on or 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. Because of this reason, we are unable to obtain sufficient and appropriate evidence to provide a basis for our opinion whether the company had adequate internal financial controls over financial reporting and whether such internal financial controls were operating effectively as on March 31, 2017.

We have considered the disclaimer reported above in determining the nature, timing and extent of audit tests applied in our audit of the financial statements of the company and the disclaimer does not affect our opinion on the financial statements of the company. For Gopalaiyer and Subramanian Chartered Accountants (Firm Regn No : 000960S)

Sd/- (KR Suresh) Place: Mangaluru Partner Date : 18.09.2017 Membership No : 025453

56 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

ANNEXURE III TO INDEPENDENT AUDITOR'S REPORT

Sl No. Directions Reply of Auditor 1. If the Company has been selected for The company is not selected for disinvestment disinvestment, a complete status report in terms of valuation of Assets (including intangible assets and land) and Liabilities (including Committed & General Reserves) may be examined including the mode and present stage of disinvestment process.

2. Please report whether there are any cases Company had charged the interest on the of waiver/write off of debts/ loans/interest receivables from other ESCOMs on account of etc., if yes, the reasons thereof and the Energy Balancing for the period from 2004-05 to amount involved. 2014-15 to the extent of ` 26492.00 lakhs. Since the amount is not realised and also to comply with the audit observations Company has decided to not to charge interest from FY 2015-16. The interest charged already during previous years amounting to ` 26492.00 lakhs is written off during the year under report.

3. Whether proper records are maintained for No inventories are lying with third parties but in inventories lying with third parties & assets few cases inventories (Meters) are held with received as gift from Govt. or other employees for immediate replacement for which authorities. proper control is exercised based on the records maintained. No assets have been received as gift from Government or other authorities during the year under report.

4. A report on age-wise analysis of pending There are number of cases pending before legal/arbitration cases including the various courts/ authorities in respect of the reasons of pendency and existence/ company's corporate office and its zone and effectiveness of a monitoring mechanism circle offices as well as divisional offices. These for expenditure on all legal cases (foreign legal cases are in respect of revenue and Labour and local) may be given matters and miscellaneous cases. Age wise analysis of these pending cases is as detailed below:

Sl. No Period No. of Cases 1 Less than ONE year 04 2 One to Two Years 67 3 Two to Three years 70 4 Three to Four Years 60 5 Four to FiveYears 115 Total 316

Based on the information and verification, there is a monitoring mechanism in place for expenditure on legal cases.

57 ANNUAL REPORT 2016-17

ADDITIONAL COMPANY SPECIFIC DIRECTIONS :

Sl No. Directions Reply of Auditor

(a) Report on the efficacy of the system of The task of Meter reading, Billing and Collection billing and collection of revenue in the of revenue has been entrusted to TRM (Total Company. Whether tamper proof meters Revenue Management) Agencies. Meters are have been installed for all consumers? If not being read monthly on specified dates and bills then, examine how accuracy of billing was are issued to Consumers using spot billing ensured. machines. The Billing efficiency and collection efficiency of the Company for FY 2016-17 are 99.76 % & 99.20 % respectively. Based on the technical certificate given to us, tamper proof meters have been installed for all consumers.

(b) Whether the reconciliation of receivable No reconciliation of receivables and payables and payables between the generation, between generation, distribution and distribution and transmission companies transmissions companies have been undertaken has been completed. The reasons for as there is no response from the generation, difference may be examined. distribution and transmission companies in this respect. However efforts are being made by the company for reconciliation of receivable and payable transactions during the year.

© Whether the company recovers and The Company generally recovers and accounts accounts, the State Electricity Regulatory KERC/ CERC approved fuel and Power purchase Commission (SERC) approved Fuel and adjustment cost save for a few instances as Power Purchase Adjustment Cost detailed in notes to accounts - Please refer from (FPPCA)? Note no 27.6, 27.7, 27.8, 27.9, 27.10, 27.12, 27.16 and 27.22.

(d) How much tariff roll back subsides have During the year 2016-17, the company has been allowed and booked in the accounts accounted ` 78066.05 lakhs as subsidy during the year? Whether the same is being receivable from Government of Karnataka reimbursed regularly by the State towards free power supply to the IP set Government? consumers (upto 10HP) and BJ/KJ consumers having monthly consumptions upto 18 units. Out of these ` 52626.00 lakhs has been released by Government of Karnataka during the year and balance of ` 25440.05 lakhs is accounted as receivable as on 31.03.2017. This apart, out of the opening amount of ` 15429.89 lakhs. As on 01.04.2016, a sum of ` 4331.00 lakhs has been received during the year. The total closing balance as on 31.03.2017 including the current year's arrears of ` 25440.05 lakhs, is ` 36538.94 lakhs. Besides, as per G.O. No. EN 67 PSR 2017, Bangalore Dated 31.07.2017, the Company has also accounted subsidy for ` 7722.00 lakhs receivable from GoK.

58 ANNUAL REPORT 2016-17

Sl No. Directions Reply of Auditor

(e) If the audited entity has computerised its Barring Billings, all other sections/ operations are operations or part of it, assess and report, not computerized. The task of Metering, Billing how much of the data in the company is in and Collection of revenue has been entrusted to electronic format, which of the area such as TRM (Total Revenue Management) Agencies. accounting , sales personnel information, Meters are being read monthly on specified payroll, inventory, etc., have been dates and bills are issued to Consumers using computerised and the company has spot billing machines. We have enquired and evolved proper security policy for gathered that the Software/Data are managed data/software/hardware? and controlled by the system administrator. Alteration or modification of any data cannot be made without proper admin access. So, there is a centralized mechanism that provides a sense of security to data and the software. However, being more of system and technical operations, we suggest that a Systems audit be done by system trained audit professionals to ensure proper security in place.

For Gopalaiyer and Subramanian Chartered Accountants (Firm Regn No : 000960S)

Sd/- (KR Suresh) Place: Mangaluru Partner Date : 18.09.2017 Membership No : 025453

59 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

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

No.AG (E&RSA)/ES-II/PS-II/2017-18/K-961/89 Dated: 21.09.2017

The preparation of financial statements of Mangalore Electricity Supply Company Limited, Mangalore 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: 18.09. 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 Mangalore Electricity Supply Company Limited, Mangalore 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. 40 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 & Auditor General of India

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

60 ANNUAL REPORT 2016-17

BALANCE SHEET AS AT 31ST MARCH 2017 (` in Lakh) SL. NOTE ACCOUNT PARTICULARS AS AT 31.03.2017 AS AT 31.03.2016 NO. NO CODE I EQUITY AND LIABILITIES (1) Shareholders' Funds a) Share Capital 1 52.301 35807.02 26636.02 52.302 b) Reserves and Surplus 2 55 to 58 17019.61 52826.63 15544.51 42180.53 (2) Share application money pending allotment 3 52.303 1400.00 1400.00 Sub-Total 54226.63 43580.53 (3) Non-Current Liabilities a) Long-term borrowing 4 53 to 54 41660.56 37304.75 b) Deferred Tax Liabilities(Net) 5 - - - c) Other long term liabilities 6 42 to 48 231601.70 208019.86 d) Long-term Provisions 7 44 4186.82 3382.25 Sub-Total 277449.08 248706.86 (4) Current Liabilities a) Short-term borrowings 8 50 30856.55 22843.09 b) Trade payables 9 41 36102.11 24207.85 c) Other current liabilities 10 42 to 46 52140.94 46733.75 51,53,54 d) Short-term provisions 11 46 984.41 1139.71 Sub-Total 120084.01 94924.40 TOTAL 451759.72 387211.79 II ASSETS 1 Non-Current assets (a) Fixed assets (i) Tangible Assets (a) Tangible Assets (Net) 12 10 & 12 171351.77 151912.66 (b)Gross Assets created out of Govt. 12 10 57299.69 51516.63 grant/ Consumers Contributions (c) Net Fixed Assets 114052.08 100396.03 (ii) Intangible assets 13 - - - (iii) Capital work-in-progress 14 14,15 &17 14655.74 11814.35 (iv) Intangible assets under development 15 18.101 425.41 316.99 (b) Non-Current investments 16 20.291 251.00 251.00 (c) Deferred Tax Assets (net) 17 - - - (d) Long term loans and advances 18 28.935 8161.11 7582.49 (e) Other non-current assets 19 28,16.2 & 120556.67 156553.96 52.308 Sub-Total 258102.01 276914.82 2 Current assets (a) Inventories 20 22 & 16.1 4225.64 6302.70 (b) Trade receivables 21 23, 47.607 & 17072.37 26830.96 47.609 (c ) Cash and cash equivalents 22 20 & 24 7255.57 4148.42 (d) Short-term loans and advances 23 25, 26, 27 & 5303.01 4046.12 28.913 (e) Other current assets 24 23.4 & 28 159801.12 68968.77 Sub-Total 193657.71 110296.97 TOTAL 451759.72 387211.79 Significant Accounting Policies and Notes to Accounts form the part of the Accounts. Sd/- Sd/- Sd/- (D.R. SRINIVAS) (M.D.RAVI) (K. RAMAKRISHNA) Chief Financial Officer Director, MESCOM Managing Director In terms of our Report of even date for GOPALAIYER & SUBRMANIAN Chartered Accountants Firm Reg. No: 000960 S Sd/- CA K.R. SURESH Place : Mangaluru PARTNER Date: 18/09/2017 Membership No. 25453

61 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2017 (` in Lakh) SL. ACCOUNT FOR THE YEAR FOR THE YEAR PARTICULARS NOTE NO. NO. CODE 2016-17 2015-16 I Revenue from operations (Distribution of Power) 25 61 & 83 326244.15 269175.21 II Other Income 26 62 & 65 15841.37 7692.32 III Total Revenue (I+II) 342085.52 276867.53 IV Expenses Purchase of Power 27 70 254170.75 223056.22 Employee Benefits Expense 28 75 26697.98 24924.08 Finance Costs 29 78 & 80 12691.10 11060.42 Depreciation and amortization expenses 30 77 & 83.6 7844.53 6408.14 Other Expenses 31 74,76, 79 & 83 39387.48 10577.73 Total Expenses 340791.84 276026.59 V PROFIT BEFORE EXCEPTIONAL AND EXTRAORDINARY 1293.68 840.94 ITEMS AND TAX (III-IV) VI Exceptional Items 32 65.500 - -270.45 VII PROFIT BEFORE EXTRAORDINARY ITEMS 1293.68 1111.39 AND TAX (V-VI) VIII Extraordinary items - - IX PROFIT BEFORE TAX (VII-VIII) 1293.68 1111.39 X TAX EXPENSE Current Tax 81.1 307.01 231.22 Deferred Tax - - MAT Credit entitlement 33 62.922 -307.01 -231.22 XI Profit (Loss) for the period from continuing 1293.68 1111.39 operations (IX-X) XII Profit (Loss) from discontinuing operations - - XIII Tax expense of discontinuing operations - - XIV Profit (Loss) from discontinuing operations - - (after Taxes) (XII-XIII) XV Profit (Loss) for the period (XI+/-XIV) 1293.68 1111.39 XVI Earnings per equity share (in `) 0.36 0.48 Basic and diluted Significant Accounting Policies and Notes to Accounts form the part of the Accounts.

Sd/- Sd/- Sd/- (D.R. SRINIVAS) (M.D.RAVI) (K. RAMAKRISHNA) Chief Financial Officer Director, MESCOM Managing Director In terms of our Report of even date for GOPALAIYER & SUBRMANIAN Chartered Accountants Firm Reg. No: 000960 S Sd/- Place : Mangaluru CA K.R. SURESH PARTNER Date: 18/09/2017 Membership No. 25453

62 ANNUAL REPORT 2016-17

CASH FLOW STATEMENT FOR THE YEAR ENDING (` in Lakh) PARTICULARS 31.03.2017 31.03.2016 A) Cash flows from operating activities : Net profit before taxation and extraordinary items 1293.68 1111.39 Adjustment for: Depreciation 7844.53 6373.86 Foreign exchange loss - - Interest income -70.38 -24.86 Dividend income - - Interest expense 12691.10 11060.42 Operating profit before working capital changes 21758.93 18520.81 (Increase)/Decrease in trade recievables 9758.59 26268.84 (Increase)/Decrease in loans and advances -1256.89 -1775.89 (Increase)/Decrease in other current assets -90832.35 -16724.59 (Increase)/Decrease in inventories 2077.06 -278.48 Increase/(Decrease) in short term borrowings 8013.46 1187.20 Increase/(Decrease) in trade payables 11894.26 8660.38 Increase/(Decrease) in provisions -155.30 584.91 Increase/(Decrease) in other current laibilities 5407.19 -55093.98 12417.95 30340.32 Cash generated from operations -33335.05 48861.13 Income taxes paid 307.01 231.22 Cash flow before extraordinary item -33642.06 48629.91 Extraordinary items (specifying nature) - - Net cash from operating activities (A) -33642.06 48629.91 B Cash flows from investing activities Purchase of tangible fixed assets -21500.58 -19478.22 (Increase)/ Decrease in Capital Work in Progress -2841.39 -1474.41 Increase/ (Decrease) in other long term Liabilities 23581.84 20825.63 Increase/ (Decrease) in other long term Provisions 804.57 -251.32 Purchase of intangible fixed assets -108.42 -44.88 Purchase of long term investments - - (Increase)/Decrease in other non-current assets 35997.29 -41168.82 (Increase)/Decrease in other long term loans and advances -271.61 -146.31 Interest received 70.38 24.86 Net cash from investing activities (B) 35732.08 -41713.47 C Cash flows from financing activities Proceeds from Share Application Money 9171.00 2763.00 Increase/(Decrease) in other long term borrowings 4355.81 1523.85 Contributions/ Grants and subsidies towards Cost of 181.42 695.63 Capital Assets Interest paid -12691.10 -11060.42 Dividends paid - - Dividend distribution tax - - Proceeds from ESOPs - - Net cash used in financing activities (C) 1017.13 -6077.94 Net increase in cash and cash equivalents 3107.15 838.50 (A) + (B) + (C) Cash and cash equivalents at beginning of period 4148.42 3309.92 Cash and cash equivalents at end of period 7255.57 4148.42 Sd/- Sd/- Sd/- (D.R. SRINIVAS) (M.D.RAVI) (K. RAMAKRISHNA) Chief Financial Officer Director, MESCOM Managing Director In terms of our Report of even date for GOPALAIYER & SUBRMANIAN Chartered Accountants Firm Reg. No: 000960 S Sd/- Place : Mangaluru CA K.R. SURESH Date: 18/09/2017 PARTNER Membership No. 25453 63 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

I) SIGNIFICANT ACCOUNTING POLICIES FOR THE PERIOD ENDED 31-03-2017.

a) Basis of preparation of financial statements:

The Company is registered under the provisions of Companies Act, 1956. The Company is a distribution licensee under Section 14 of the Electricity Act, 2003.

The Accounts of the company have been prepared on the basis of going concern concept and under the historical cost convention. The Company adopts accrual basis in preparation of its accounts to comply with all material aspects of Generally Accepted Accounting Principles (GAAP) and the accounting standards specified under Section 133 of the Companies Act 2013. However, rebate for early payment and interest on delayed payment to power producers are accounted for as and when intimated by them. Further, assets and liabilities created under applicable electricity laws continue to be depicted under appropriate heads in the Balance Sheet.

b) 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.

c) Fixed Assets:

i) During the year the Company has modified the accounting policy of accounting for Fixed Assets to comply with Accounting Standard-10.

The existing policy and modified policy are as given below :

Existing Policy Modified Policy Fixed assets which are acquired or The cost of a fixed asset comprises of its constructed are recorded in the books of purchase price and any attributable cost of accounts and disclosed in annual accounts bringing the asset to its working condition for at actual cost of acquisition/ construction or its intended use less accumulated at standard rate, as the case may be, less depreciation. accumulated depreciation. Value of Fixed Assets which constitute the Opening Balance for FY 2016-17 will be retained at the value existed in the books of Accounts as at the end of 31/03/2016.

i) Cost of acquisition is inclusive of freight, duties & taxes, levies, borrowing costs and all incidentals attributable to bringing the asset to its working condition.

ii) In case of fixed assets, for new projects / extension, the related expenses and interest cost up to the date of commissioning attributable to such project / expansion are capitalized.

iii) Fixed Assets other than those classified as 'Furniture & Fixture' and 'Office Equipments', costing individually up to ` 500 are written off to Profit and Loss Account during the year.

64 ANNUAL REPORT 2016-17

iv) Assets transferred by M/s Karnataka Power Transmission Corporation Limited (KPTCL) have been stated at the cost of transfer indicated by KPTCL in transfer document.

d) Impairment of Assets:

The Company at the Balance Sheet date assesses individual fixed assets and group of assets constituting “Cash Generating Units” (CGU) for impairment, if circumstances indicate a possibility or warrant such assessment. If carrying cost is higher than recoverable amount provision will be made for impairment of assets or CGU.

e) Depreciation:

i) Depreciation on all assets is provided on straight line method over the useful life of the asset at the rates approved in KERC Tariff Order 2009 dated 25th November 2009. Depreciation on released assets re-issued to works and categorized as assets, is charged at the rates prescribed vide said regulation considering the WDV as the base value. This system is followed consistently.

ii) In respect of Lease hold land where entire lease amount is paid in advance, entire lease amount is amortized over the lease period by charging a fixed amount which is arrived by dividing the total Lease cost by the number of years of lease so that 100% of the leased cost of land is recovered over the lease period.

iii) Depreciation on all assets excluding land is provided up to 90% of the original cost. Depreciation is not charged on those assets for which the accumulated depreciation as at the Balance Sheet date is 90% of the original cost.

iv) Depreciation on additions of assets is provided on pro-rata basis from the month next following the one in which the assets becomes available for use. Depreciation on disposed assets / assets withdrawn from use is provided up to the month in which the asset is disposed / withdrawn.

f) Inventory valuation:

During the year the Company has modified the accounting policy of valuation of inventories to comply with Accounting Standard-2.

The existing policy and modified policy are as given below:

Existing Policy Modified Policy Inventories are valued at Standard Rate, AS-2 to be implemented from 1st April 2016 which is determined by MESCOM from time and onwards. to time based on previous purchase price Value of materials which constitute the and prevailing market rates (published as Opening Balance for FY 2016-17 (i.e. as on O & M Schedule of Rates). The difference in 01.04.2016) will be retained at the value actual cost of material received and standard existed in the books of accounts as at the end issue rate represents "Material Cost of 31.03.2016. Variance". At the end of the year debit All the materials at the time of purchase are to balance if any, under Material Cost Variance be valued at purchase cost instead of is charged to Profit and Loss Account and standard Rates prescribed in Schedule of credit balance if any is transferred to reserve Rates Book. account called "Reserve for Material Cost All the materials issued are to be valued at Variance". weighted average rate applicable to the closing stock before such issue.

65 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Dismantled Assets are valued at written down value of assets.

g) Capital Work in Progress:

With the change in the accounting policy for valuation of inventory, material issued to Capital Works are valued at weighted average rate applicable to the closing stock before such issue.

h) Revenue Recognition:

Sale of Electricity is accounted, based on tariff rates approved by the Karnataka Electricity Regulatory Commission (KERC). Revenue from sale of energy is accounted on accrual basis. Revenue is reduced by unbilled revenue of previous year included in current year's revenue. It is increased by the unbilled revenue of current year and revenue due from consumers whose ledger accounts are yet to be opened.

i) Subsidy from Government of Karnataka:

GoK vide notification no. EN 55 PSR 2008 dtd 14.09.2008 has introduced a scheme of free power supply to IP sets having capacity of upto 10 HP. Further GoK is also providing free power supply to Bhagyajyothi and Kutirajyothi consumers having monthly consumption upto 18 units.

In accordance with the aforesaid notification, MESCOM is providing free power to IP sets & BJ/KJ consumers and the cost thus involved in providing free power supply to those consumers will be made good by GoK. The difference between the amount of free power supply to BJ/KJ and IP set consumers and the actual amount received from the Govt. will be accounted as receivable from the GoK.

j) Employee Benefits:

i) The employees earlier appointed by the KPTCL are working in the Company on deputation basis. Now the Company is recruiting its employees independently depending on vacancy available.

ii) In respect of Pension and Gratuity, provision for contribution to KPTCL/ESCOMs Pension & Gratuity Trust is made on the formula evolved by the Trust based on the actuarial valuation undertaken by KPTCL/ESCOMs' Pension & Gratuity Trust. Any revision in contribution due to actuarial valuation by the Trust is accounted in the year of intimation by the Trust.The contribution towards pension and gratuity for the year 2016-17is accounted at the rates noted below:-

Pension - 33.05% of Basic Pay + Dearness Pay +Dearness Allowance

Gratuity – 6.08% of Basic Pay + Dearness Pay

For those employees who have joined MESCOM on or after 1.4.2006, the contributory pension scheme is applicable wherein 10% of the Basic Pay + Dearness Pay + Dearness Allowance are contributed to the pension fund with matching contribution of employees.

iii) Provision for EL& FBF:

Provision towards Earned Leave Scheme and Family Benefit Fund has been created based on the Actuarial Valuation carried out as on 31.03.2017.

66 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

k) Provision for Bad and Doubtful Debts:

Provision for Bad and Doubtful Debts is made at 4% on the balance of sundry debtors for sale of power, outstanding as at the end of the year.This method is being followed by the company consistently. l) Accounting for Grants & Contributions from consumers

The Company has implemented provisions of Accounting Standard -12 issued by the Institute of Chartered Accountants of India for recognizing the Grants & Consumers contribution received towards capital expenditure from the year 2012-13. Hence the value of grants and consumer contribution utilized towards the capital expenditure has been reduced from carrying amount of the fixed Assets. Company has also not charged depreciation on the Assets created out of Consumers Contribution and Govt. grants. m) Investments:

I) Investment in Power Company of Karnataka Ltd (PCKL):

An amount of ` 1.00 lakh paid towards the initial minimum share capital and ` 250 lakh paid towards networth, subsequently converted to Equity by Power Company of Karnataka Ltd (PCKL) have been accounted as investments under account code 20.291.

II) Long term investments are carried at cost less provisions if any for diminutions in the value of such investments.

67 ANNUAL REPORT 2016-17

NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2017

1 EQUITY AND LIABILITIES NOTE : 01 SHARE CAPITAL (` in Lakh) Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code

1.1 Authorised Capital 50000.00 30000.00 50,00,00,000 Equity shares of ` 10/- each

1.2 Issued, Subscribed and Paid up Equity Share Capital 52.301 35807.02 26636.02 (35,80,70,231 shares of 52.302 ` 10 each) 35807.02 26636.02

TOTAL 35807.02 26636.02

1.3 Company is having one Share each in the name of 9 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 31.03.2017 As at 31.03.2016 Equity shares at the beginning of the Year 266360231 216070231 Add: No. of Equity shares issued during the Year 91710000 50290000 Less : No. of Equity shares cancelled on buy back during the Year - - Equity shares at the end of the Year 358070231 266360231

NOTE : 02 RESERVES AND SURPLUS (` in Lakh) Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code 2.1 Capital Reserve: As per Last Balance Sheet 56.200 132.66 132.66 Add: Additions during the Year - - Less: Utilised during the Year - - Closing Balance 132.66 132.66 2.2 Proposed Adj. to Net worth: As per Last Balance Sheet 52.308 - - Add: Additions during the Year -2896.00 - Less: Utilised during the Year - - Closing Balance -2896.00 - 2.3 Reserve for Material Cost Variance As per Last Balance Sheet 56.610 4592.66 5048.03 Add: Additions during the Year - - Less: Utilised during the Year 251.62 455.38 Closing Balance 4341.04 4592.66 2.4 Profit and Loss Account (Surplus) As per Last Balance Sheet 9668.19 8556.80 Add: Additions during the Year 1293.68 1111.39 Less: Utilised during the Year - - Closing Balance 10961.87 9668.19

68 ANNUAL REPORT 2016-17

(` in Lakh) Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code

2.5 Contributions, grants and subsidies towards cost of Capital assets 2.5.1 Consumers contribution towards cost of 55.100 33656.05 27713.44 capital assets 2.5.2 Subsidies towards Cost of Capital Assets 55.200 1193.33 1193.33 2.5.3 State Govt. grants towards cost of 55.300 1551.00 1551.00 capital works 2.5.4 APDRP Grant Account 55.301 3704.81 3704.81 2.5.5 PMGY Grant Account 55.302 56.25 56.25 2.5.6 RGGVY Grant Account 55.303 13448.45 13608.00 2.5.7 IPDS Grant Account 55.304 955.00 - 2.5.8 DDUGJY Grant Account 55.305 2374.04 - 2.5.9 Special Grant Towards Capital works under 55.500 3670.32 3670.32 APDRP 2.5.10 GoK Grant Towards energization of IP sets 55.501 53.00 53.00 under Ganga Kalyana Scheme 2.5.11 Central Govt. Grant towards Power Sector 55.502 63.00 63.00 Automation 2.5.12 Grants received from GoK towards special 55.504 775.00 775.00 component sub plan [SCSP] 2.5.13 Grants received from GoK towards Tribal 55.505 279.48 279.48 sub plan [TSP] Sub - Total 61779.73 52667.63 2.6 Gross Assets created out of Grants and 57299.69 51516.63 reduced from total Fixed Assets 2.7 Grants received for installing Solar roof 4480.04 1151.00 Tops, IPDS and DDUGJY Schemes yet to be utilised TOTAL 17019.61 15544.51

2.2 (a) Govt. of Karnataka vide order No. EN 67 PSR 2017 BANGALORE Dated 31.07.2017 has ordered to transfer the old balances of Subsidy and KPCL dues including principal and interest existing in the books of KPTCL as on 31.03.2016 to the ESCOMs. Further approval has also been accorded to the write back of the said interest in the books of ESCOMs and to adjust the difference in Receivables and payables resulting from the above transaction under the head Proposed adjustment to Networth Account in the books of Escoms Accordingly the Company has accounted Subsidy amounting to ` 7722.00 lakh, KPCL dues of ` 10618.00 lakh (Principal of ` 6958.00 lakh and interest of ` 3660.00 lakh), and proposed adjustment to Net worth of ` 2896.00 lakh which has been shown as a line item under 2.2 above. Further, Company has written back the interest amount of ` 3660.00 lakh by crediting miscellaneous revenue and debiting KPCL account. 2.5.6 (a)The Central Government has formulated RGGVY Scheme to provide power supply to the consumers under BPL category. M/s RECL was nominated as the nodal agency for the Scheme. In MESCOM jurisdiction, the scheme was implemented in Chikkamagaluru and Shivamogga districts in Phase I of XI plan and the work was completed in all respect in the year 2011-12. Further the Scheme was extended to Dakshina Kanada and Udupi Districts in Phase II of XI Plan and the work was completed in all respect in the year 2014-15. The details of funds received and expenses booked under this scheme are as detailed below: (` in Lakh) For Shivamogga & For DK & Particulars Total Chikkmagaluru dist Udupi dist Grant received from Central Govt. 6601.34 7006.66 13608.00 Grants returned to MoP -159.55 - -159.55 Loan from RECL 765.31 786.82 1552.13 Interest earned on un-utilised fund upto 31.03.2017 132.44 99.96 232.40 Invested by MESCOM 224.91 - 224.91 Total funds available 7564.45 7893.44 15457.89 Funds utilised 7422.40 7796.23 15218.63 Returned to MoP 142.00 92.22 234.22 Total fund available as on 31.03.2017 0.05 4.99 5.04

69 ANNUAL REPORT 2016-17

2.5.7(a) Integrated Power Development Scheme (IPDS): Govt. of India has launched IPDS for urban/Semi-urban areas. Power Finance Corporation (PFC) is the nodal Agency. Scope of Work includes strengthening of Sub- transmission and Distribution network, metering, provision for solar panels, IT enablement works etc. Sanction for an amount of ` 157.80 Crs has been communicated from PFC for 29 numbers of statutory towns for the above works excluding IT enablement works. Company has received ` 9.55 Crs for this project during FY 2016-17. 2.5.8(a) Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY): Govt. of India has launched DDUGJY for Rural areas. Rural Electrification Corporation (REC) is the nodal agency. Scope of Work includes feeder seperation, strengthening of Sub- transmission and Distribution system, metering, rural electrification etc. At present approval for an amount of ` 395.67 Crs has been communicated from REC/GOK for all four districts of MESCOM. Company has received ` 23.74 Crs for this project during FY 2016-17.

2. SHARE APPLICATION MONEY PENDING ALLOTMENT NOTE : 3 SHARE APPLICATION MONEY PENDING ALLOTMENT (` in Lakh) Account Sl. No Particulars As at 31.03.2017 As at 31.03.2016 Code 3.1 Share Deposit from GOK Pending Allotment 52.304 1400.00 1400.00 Total 1400.00 1400.00

3.2 Details for the Share Deposit held as on 31.03.2017 is as below.

Amount Particulars Sl. No (` in Lakh) 3.2.1 GoK in its Order No: EN 58 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 1400.00 Electric Project among Electricity Supply Companies. The amount was paid by PCKL to Andhra Pradesh Power Generation Corporation Ltd on behalf of ESCOMs. The share of MESCOM amounting to ` 14.00 Crs is accounted as Share deposit received from GoK and paid as Deposit to Andhra Pradesh Power Generation Corporation Ltd under A/c 28.935.

Total 1400.00

3 NON -CURRENT LIABILITIES NOTE: 04 LONG TERM BORROWINGS (` in Lakh) Account Sl. No Particulars As at 31.03.2017 As at 31.03.2016 Code

4.1 TERM LOANS 4.1.1 SECURED LOANS 4.1.1.1 From Banks 53.500 37502.29 31483.57 4.1.1.2 From Others 53.301, 3480.03 4255.75 53.308, 53.309, 53.311, 53.312 Sub- Total 40982.32 35739.32 4.1.2 UN-SECURED LOANS 4.1.2.1 From Banks - - 4.1.2.2 From Government 53.306, 118.49 140.85 53.307, 54.600, 54.700, 54.701, 54.702 4.1.2.3 From Others 53.305, 559.75 1424.58 53.310 53.960 Sub- Total 678.24 1565.43 TOTAL 41660.56 37304.75

70 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

4.1.2.4 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 transfer of assets and liabilities. The interest payment as intimated by KPTCL has been charged to Profit and Loss Account in the books of account since the assets have already been commissioned.

4.1.2.5 Reconciliation of loan Balances (` in Lakh)

Floating Details for Loan Term Installment due Rate of Loan Loan Loan of Repayment for 2017-18 Sl. Name of the Bank / Loan Charge Interest Balance Drawn Balance Loan during No. Lender Drawn ID No as on as on during as on in 2016-17 No of 31.03.17 01.04.16 2016-17 31.03.2017 Yrs. (%) Instal Amount ments.

I Term Loan-Secured A Commercial Banks 1 Syndicate Bank-III/Union Bank of India II Loan from Syndicate Bank is 4000 10149317 8 8.65 1114.26 - 507.34 606.92 12 486.00 secured by a first charge (02/09 (floating) on fixed assets viz., to transformers, transmission 01/17) lines, meters, poles, conductors, cables and computers worth ` 40.00 crores situated at Company jurisdiction 2 Syndicate Bank-V/Union Bank of India IV Loan from Syndicate Bank is 10000 10526347 8 8.65 9166.67 - 1428.84 7737.83 12 1428.53 secured by a first charge (09/14 (floating) on fixed assets viz., to transformers, transmission 08/22) lines, meters, poles, conductors, cables and computers worth ` 100.00 crores situated at Company jurisdiction 3 Syndicate Bank-VI/Union Bank of India V Secured by Hypothecation of 2600 10550297 40 8.65 1625.00 - 780.31 844.69 12 780.00 the whole of present and future Mnths current assets including (12/14 inventories and book debts to belonging to the Company 03/18) situated at Corporate Office. 4 Syndicate Bank-IV/Union Bank of India III Secured by a first charge on 10000 10281594 8 8.65 4265.46 - 1426.38 2839.08 12 1419.56 assets such as Plant & (03/11 Machinery, line cable networks to including poles, towers, 02/19) Transformers, Meters etc, Furniture, Office equipment etc located in Dakshina Kannada, Udupi, Shivamogga & Chikkamagaluru Districts. 5 Corporation Bank-II 10000 10190264 8 8.65 2359.28 - 1428.60 930.68 12 930.68 secured by Hypothecation of (10/09 present and future current to assets of the Company. 09/17) 6 Punjab & Sind Bank - I Secured by Hypothecation of 10000 10105976 8 10.75 118.31 - 118.31 - - - the whole of present and future (05/08 current assets including to inventories and book debts 04/16) belonging to the Company situated at Corporate Office.

71 ANNUAL REPORT 2016-17

(` in Lakh)

7 Indian Bank/Union Bank of India VII Secured by Hypothecation of 5000 10185366 9 8.65 1562.50 - 625.04 937.46 4 (Qtly) 625.14 the whole of present and future (10/09 current assets including to inventories and book debts 09/18) belonging to the Company situated at Corporate Office. 8 State Bank of Mysore-II/ Union Bank of India VIII Hypothication of the 10000 10369875 8 8.65 6160.00 - 1426.40 4733.60 12 1385.45 equipments/meters/ (08/12 transformers/ poles/aluminium to wires/ conductors/ cables/ civil 07/20) works etc. purchased/ acquired for the project out of the term loan granted. 9 Canara Bank-I Pari passu Charge on Fixed 5000 10448012 8 8.65 3869.50 - 714.00 3155.50 12 714.00 Assets of the Company, (08/13 existing and future assets to to the extent of ` 50 crs. 07/21) 10 Canara Bank-II Pari passu Charge on Fixed 5000 10448012 8 8.65 4167.00 - 714.00 3453.00 12 714.00 Assets of the Company, (08/13 existing and future assets to to the extent of ` 50 crs. 07/21) 11 Syndicate Bank-VII/Union Bank of India VI Exclusive charge on fixed 5000 10593879 9 8.65 2100.00 2900.00 416.70 4583.30 12 625.06 assets to the tune of ` 62.50 (08/15 crores to be acquired by the to Company. 07/24) 12 Canara Bank-III Pari passu First Charge on 5000 10448012 8 8.65 5000.00 - 357.00 4643.00 12 714.00 Fixed Assets of the Company, (07/15 existing and future assets to to the extent of ` 50 crs. 06/23) 13 Canara Bank-IV Pari passu First Charge on 5000 10448012 8 8.65 - 3000.00 - 3000.00 7 416.50 Fixed Assets of the Company, (09/16 existing and future assets to to the extent of ` 50 crs. 08/24) 14 Union Bank of India-I 10000 100036293 8 9.85 - 8000.00 - 8000.00 10 1190.50 Charge over Existing & Future (06/16 Fixed assets of the company to along with other lenders. 05/24) 15 Punjab & Sind Bank - II Charge of whole of existing 10000 100053901 8 9.70 0.00 4300.00 - 4300.00 7 833.35 fixed assets & capital assets (09/16 created out of TL under pari to passu charge with other 08/24) Lenders in MBA. Sub-Total 106600 41507.98 18200.00 9942.92 49765.06 12262.77 B Others 1 REC– APDRP works Works at Shivamogga, Bhadravathi 161 80059293 13 12.25 107.54 - 32.18 75.36 1 16.09 and Chikkamagaluru are secured (06/07 by way of first charge by to hypothecation of moveable 05/20) machinery, equipments,

72 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

(` in Lakh) Floating Term Details for Loan Rate of Loan Loan Loan of Repayment Installment due Sl. Name of the Bank / Loan Charge Interest Balance Drawn Balance Loan during for 2017-18 No. Lender Drawn ID No as on as on during as on in 2016-17 31.03.17 01.04.16 2016-17 31.03.2017 No of Yrs. (%) Instal Amount ments. machinery spares, tools, implements and accessories installed and equipments created under the project and procured out of loan 2 REC – General Projects at Vogga, Kukkipady 634.00 10033614 13 12.25 316.86 - 126.75 190.11 1 63.37 and Nellyadi in Dakshina (01/07 Kannada district, are secured to by first charge by 12/19) hypothecation of all moveable machinery, equipments, machinery spares, tools, implements and accessories installed and equipments created under the project and procured out of loan sanctioned by REC. 3 REC bulk Loan Transformers and Conductors 3481.26 10384994 7 12.25 3481.26 - 696.25 2785.01 2 696.25 utilised for System Improve- (10/12 ment works to the extent of to ` 89.66 Crs. 09/19) 4 PFC- R-APDRP works Loan from M/s PFC is secured 723.96 10184171 10 9.00 509.02 - - 509.02 - - by (02/09 1.moveable properties of to newly financed Assets under 01/19) projects installed at MESCOM project Area. 2.Existing and proposed Moveable plant and Machinery of the Company. Sub-Total 5000.22 4414.68 - 855.18 3559.50 775.71 Total Secured Loans 111600..22 45922.66 18200.00 10798.10 53324.56 13038.48 II Term Loan-Un-Secured 1 APDRP-REC Loan payable - - - - 150.44 - 150.44 - - - to KPTCL 2 PMGY Loan Account 126.00 - 20 12.00 71.46 - 7.66 63.80 1 7.66 (12/04 to 11/24) 3 Central Govt. Loan towards 147.00 - 10 9.00 29.40 - 29.40 - - - Power Sector Automation (06/07 to 05/17) 4 Loan from GoK - Interest free 2262.34 - 62.34 - - 62.34 - - 5 REC – RGGVY Works 765.32 - 11.50 714.30 - 194.09 520.21 1 51.03 Shivamogga & Chikkamagaluru Districts 6 REC – RGGVY Works - DK & 786.82 - 11.50 786.82 - - 786.82 - - Udupi Districts Sub-Total 4207.48 - 1814.76 - 381.59 1433.17 - 58.69 TOTAL LONG TERM LOANS 115807.70 - 47737.42 18200.00 11179.69 54757.73 - 13097.17 Term loan due for repayment 10432.67 13097.17 in next year (shown as current Liabilities in Note:10) Net long term loan (Note-4) 37304.75 41660.56

73 ANNUAL REPORT 2016-17

NOTE : 05 - DEFERRED TAX LIABILITIES (NET) (` in Lakh) Account Sl. No Particulars As at 31.03.2017 As at 31.03.2016 Code 5.1 Deferred Tax Liabilities (Net) - -

NOTE: 06 - OTHER LONG TERM LIABILITIES (` in Lakh) Account Sl. No Particulars As at 31.03.2017 As at 31.03.2016 Code 6.1 Trade Payables 6.1.1 M/s KPCL 41.108 89098.86 84625.34 6.1.2 Interest payable to M/s KPCL 46.430 43150.81 42864.32 Sub-Total 132249.67 127489.66 6.2 Others 6.2.1 Security Deposits from consumers: 6.2.1.1 Meter Security Deposits 47.603 to 2351.72 2296.35 47.606 & 47.611 & 47.612 6.2.1.2 Initial/ Additional Security Deposits 48.100 to 48557.28 44447.63 48.200 Sub- Total 50909.00 46743.98 6.3 KPCL, KPTCL & Other ESCOMs 6.3.1 M/s KPCL 42.203, 3.48 3.48 42.213 6.3.2 M/s KPTCL 42.214, 4001.41 4001.41 42.219, 42.224, 42.229, 46.106 6.3.3 M/s BESCOM 42.215, 26644.85 18576.43 42.220, 42.225, 42.230 6.3.4 M/s HESCOM 42.216, 2246.08 874.78 42.222, 42.232 6.3.5 M/s GESCOM 42.233 5653.59 3332.39 6.3.6 M/s CESCO 42.790 3359.19 3330.69 Sub- Total 41908.60 30119.18 6.4 Staff related Liabilities 6.4.1 Security deposit from employees 46.920 0.27 0.39 Sub-Total 0.27 0.39 6.5 Liability to Suppliers and Contractors 6.5.1 Security Deposits in cash from 46.101 923.89 608.51 Suppliers / Contractors 6.5.2 Retention Money- Bill amount retained 46.104 5446.34 2892.06 as per terms of purchase order/ turnkey contract Sub-Total 6370.23 3500.57 6.6 Payables to GoK 6.6.1 BRP - II recoveries 46.202 to 40.75 40.75 46.207 6.6.2 Amount received from Govt., towards 28.816 68.59 78.70 Bhagya Jyothi Works Sub-Total 109.34 119.45 6.7 Others 6.7.1 Stale Cheques 46.910 27.07 3.81 6.7.2 Miscellaneous deposits 46.966 27.52 42.82 Sub-Total 54.59 46.63 TOTAL 231601.70 208019.86

74 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

6.8 The balance of consumers security deposit held as per accounts and consumers ledger accounts are subject to reconciliation.

NOTE: 07 LONG TERM PROVISIONS (` in Lakh) Account Sl. No Particulars As at 31.03.2017 As at 31.03.2016 Code

7.1 Provisions for Employee benefits 7.1.1 Provision for earned leave encashment 44.130 3096.08 2193.17 7.1.2 Provision for Family Benefit Fund 44.141 ,44.142, 1090.74 1189.08 44.143 Sub-Total 4186.82 3382.25 Total 4186.82 3382.25

4 CURRENT LIABILITIES NOTE: 08 SHORT TERM BORROWINGS (` in Lakh)

Account Sl. No Particulars As at 31.03.2017 As at 31.03.2016 Code 8.1 Bank Overdraft 8.1.1 State Bank of Mysore 50.210 0.00 5949.51 8.1.2 Syndicate Bank 50.220 9924.27 0.00 8.1.3 Vijaya Bank 50.260 0.00 3852.30 8.1.4 Central Bank of India 50.270 0.00 1930.17 8.1.5 Union Bank of India 50.290 16487.86 0.00 Sub-Total 26412.13 11731.98 8.2 Short Term Loans 8.2.1 Syndicate Bank 53.500 4444.42 11111.11 Sub-Total 4444.42 11111.11 TOTAL 30856.55 22843.09

8.3 Reconciliation of loan Balances (` in Lakh) Floating Term Details Rate of Loan Loan Loan of Repayment of Loan Sl. Name of the Bank / Loan Charge Interest Balance Drawn Balance Loan during Installments No. Lender Drawn ID No as on as on during as on in 2016-17 due in FY 31.03.17 01.04.16 2016-17 31.03.2017 Months 2017-18 (%)

I Short Term Loan-Secured 1 Syndicate Bank-II/ 20000.00 10610407 36 Months 8.65 17777.78 - 6666.70 11111.08 6666.67 Union Bank of India (12/2015 Against hypothication of to11/2018) Current Assets of the Company, present and future, along with other lenders Sub-Total 20000.00 - - - 17777.78 - 6666.70 11111.08 6666.67 B Overdrafts 1 Union Bank of India 16500.00 10151134 - 8.65 11731.98 4755.89 - 16487.87 - Against Hypothication of stocks of spares, consumables and book debts/ receivables

75 ANNUAL REPORT 2016-17

Floating Term Details Rate of Loan Loan Loan of Repayment of Loan Sl. Name of the Bank / Loan Charge Interest Balance Drawn Balance Loan during Installments No. Lender Drawn ID No as on as on during as on in 2016-17 due in FY 31.03.17 01.04.16 2016-17 31.03.2017 Months 2017-18 (%)

2 Syndicate Bank 10000.00 100070176 9.45 - 9924.27 - 9924.27 - Against Hypothication of stocks of spares, consumables and book debts/ receivables Sub-Total 26500.00 11731.98 14680.16 - 26412.14 - Total Short Term Borrowings 46500.00 29509.76 14680.16 6666.70 37523.22 6666.67 3 Short term loan due for 6666.67 6666.67 repayment in next year (Note-10) 4 Net Short Term loans 22843.09 30856.55 (Note-8)

NOTE: 09 TRADE PAYABLES (` in Lakh) Account Sl. No Particulars As at 31.03.2017 As at 31.03.2016 Code

9.1 LIABILITY FOR PURCHASE OF POWER 9.1.1 M/s. NTPC RSTPS 41.110 3603.45 1609.20 9.1.2 M/s. Madras Automic Power Station 41.111 31.35 39.84 9.1.3 M/s. Neyveli Lignite Corporation Ltd., 41.112 3519.70 989.95 9.1.4 M/s. NPCIL - Kaiga Generating Station 41.114 415.65 539.94 9.1.5 M/s. Sandur Power Company Ltd., 41.115 221.98 299.52 9.1.6 M/s. Sahyadri Power Company Ltd., 41.116 0.64 2.30 9.1.7 M/s. Master Power 41.118 0.04 0.07 9.1.8 M/s. Subhash Kabini 41.119 9.75 79.22 9.1.9 M/s. Graphite India Ltd., 41.120 - 12.72 9.1.10 M/s. Moodabagil Power Pvt. Ltd. 41.123 1.01 6.45 9.1.11 M/s JSW PTCIL 41.125 0.52 0.52 9.1.12 M/s. Mrujara Power Plant 41.126 1.06 2.90 9.1.13 M/s. Tata Company Limited 41.131 42.64 42.64 9.1.14 M/s. UPCL 41.132 11885.87 5804.81 9.1.15 M/s Wind Mill Projects 41.140 457.89 369.12 9.1.16 Solar Power Projects 41.150 1277.74 483.58 9.1.17 Solar Roof-top P.V.Generation plants 41.501 32.49 2.87 9.1.18 M/s. MPM Ltd. 41.195 - 19.34 9.1.19 M/s. NTPC VVNL 41.198 252.90 222.73 9.1.20 M/s. Shamili Hydel Power Project 41.202 47.16 63.00 9.1.21 M/s. AMR Power Pvt. Ltd 41.206 - 1364.76 9.1.22 M/s. Cogeneration Units & Non PPAs 41.208 147.48 3891.27 9.1.23 Sundry creditors towards other power 41.211 7351.09 4118.92 purchase cost (ST & MT) 9.1.24 M/s. Kundankulam 41.214 470.20 433.31 9.1.25 M/s. Vasgi Power Projects Ltd 41.216 1.17 1.53 9.1.26 M/s. Jurala Power Project 41.218 94.49 410.70 9.1.27 M/s. NLC Tamilnadu power Ltd 41.219 1473.70 421.08 9.1.28 M/s Damodhar Valley Corporation 41.223 1463.60 1723.37 9.1.29 Payable to KPTCL in respect of Wind 41.141 75.20 71.39 Mill Projects 9.1.30 Transmission charges payable to M/s TNEB 41.164 2.37 2.22 9.1.31 M/s PGCIL 41.173 3220.97 1178.58 Total Power Purchase Liability 36102.11 24207.85 TOTAL 36102.11 24207.85

76 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

NOTE 10 : OTHER CURRENT LIABILITIES (` in Lakh)

Account Sl. No Particulars As at 31.03.2017 As at 31.03.2016 Code

10.1 Current Maturities of Long Term Debts 10.1.1 Term Loan Installment due for repayment within Next One Year 10.1.1.1 Loans from REC 53.305 - 150.45 10.1.1.2 Loan drawn by MESCOM from 53.308 16.09 32.18 REC– APDRP works 10.1.1.3 Loan drawn by MESCOM from 53.309 63.37 126.74 REC – General 10.1.1.4 Loan from REC- RGGVY works 53.310 51.03 76.53 10.1.1.5 Loan from REC- Bulk Loan 53.312 696.25 - 10.1.1.6 Loans from Commercial Banks 53.500 12262.77 10024.41 10.1.1.7 PMGY Loan Account 53.306 7.66 7.66 10.1.1.8 GOK loan for energization of IP sets 53.307 - - under GK scheme 10.1.1.9 Central Govt. Loan towards Power Sector 54.600 - 14.70 Automation Sub-Total 13097.17 10432.67 10.2 Short Term Loan Installment due for repayment within Next One Year 10.2.1 Loans from Commercial Banks 53.500 6666.67 6666.67 Sub-Total 6666.67 6666.67 10.3 Other Payables 10.3.1 LIABILITY FOR SUPPLIES / WORKS 10.3.1.1 Liability for supply of Materials 42.101 1300.31 758.97 10.3.1.2 Sundry creditors / Control Account 42.201 1468.71 1834.91 10.3.1.3 Sundry creditors – Amount payable 42.202 8.23 3.42 towards supply of materials which do not pass through stores. 10.3.1.4 Contractors Control Account 42.401 2381.80 1337.90 10.3.1.5 Provision for work completed but not 42.601 53.78 168.01 commissioned where expenditure are not booked Sub-Total 5212.83 4103.21 10.3.2 Statutory Dues 10.3.2.1 Service Tax payable under reverse 46.921 1.84 1.75 charge Mechanism 10.3.2.2 Income tax deducted at source on 46.924 252.02 42.73 payment to contractors 10.3.2.3 Income tax deducted at source on 46.925 69.91 141.08 other payments 10.3.2.4 Sales tax deducted at source and 46.927 118.46 104.06 payable to department 10.3.2.5 Sales tax payable on sale of Stores 46.951, 14.32 0.51 46.926 10.3.2.6 Amount deducted from contractors 46.930 15.97 14.53 bills towards PF, ESI & CESS 10.3.2.7 ESI Contributions recoverable from bill 46.931 0.37 0.30 amount of contractors and payable to ESI Corporation 10.3.2.8 Amount of CESS deducted at source 46.932 18.43 4.11 and payable to the department Sub-Total 491.32 309.07 10.3.3 Employee related liabilities 10.3.3.1 Liability towards Pension & Gratuity Trust 44.122 576.64 1055.55 10.3.3.2 Liability towards contribution to newly 44.150 56.66 47.18 defined contributory pension scheme 10.3.3.3 Amount received from General Insurance 44.160 - 4.00 Company pending disbursement

77 ANNUAL REPORT 2016-17 (` in Lakh) Account Sl.No. Particulars As at 31.03.2017 As at 31.03.2016 Code

10.3.3.4 Unpaid Salaries 44.210 0.43 0.02 10.3.3.5 Unpaid Bonus 44.220 0.74 0.27 10.3.3.6 Salary payable 44.310 84.13 153.12 10.3.3.7 Salary payable to contract Employees 44.311 14.06 2.28 10.3.3.8 Bonus payable 44.320 153.84 31.83 10.3.3.9 Ex-gratia payable 44.330 235.73 369.51 10.3.3.10 Sundry creditors for expenses 46.410 181.34 91.11 10.3.3.11 Sundry creditors for travelling allowance 46.411 - 1.14 to contract Employees 10.3.3.12 Liability for miscellaneous expenses. 46.412 279.40 130.33 10.3.3.13 Security deposit from employees 46.920 0.40 0.38 Sub-Total 1583.37 1886.72 10.3.4 Payables to GOK 10.3.4.1 Electricity tax to be collected and remitted 46.300 3151.60 2905.29 10.3.4.2 Electricity tax collected but to be remitted 46.300 72.03 187.42 10.3.4.3 Compounding fee 46.301 2.58 1.42 10.3.4.4 Inspection charges payable to Govt. 46.440 7.97 1.95 10.3.4.5 Royalty payable to Govt. 46.450 0.83 0.59 10.3.4.6 Duty and Taxes payable to Government. 46.470 1.79 - Sub-Total 3236.80 3096.67 10.3.5 Payables to Consumers 10.3.5.1 Interest on ISD/ASD 48.340 3184.02 3163.13 10.3.5.2 Interest on MSD 48.350 239.99 267.21 10.3.5.3 Other Deposits from Consumers 47.601- 54.67 55.71 47.602 10.3.5.4 Self Execution works 47.701 0.04 - Sub-Total 3478.72 3486.05 10.3.6 Others 10.3.6.1 Security Deposits in cash from Suppliers / 46.101 127.83 311.78 Contractors 10.3.6.2 Retention Money-Bill amount retained as 46.104 930.60 1064.00 per terms of purchase order/turnkey contract 10.3.6.3 Liability for expenses 46.430 3500.64 3856.30 10.3.6.4 Stale Cheques 46.910 7.50 7.34 10.3.6.5 Advance received for sale of stores/ scrap 46.922 25.81 60.24 10.3.6.6 Amount recoverable from salary of 46.928 60.42 85.83 Company employees and payable to other department / other institutions 10.3.6.7 Income tax collected at source 46.929 2.26 - 10.3.6.8 Amount recovered from salary of 46.952 55.63 46.64 employees towards employees CPS 10.3.6.9 Employees PF and depatl. Share of 46.957 0.52 - PF payable a/c 10.3.6.10 Miscellaneous deposits 46.966 21.91 11.27 10.3.6.11 Excess credits by banks pending 46.971 - 0.06 0.68 reconciliation 46.976 10.3.6.12 Interest earned on un-utilized funds 46.985 32.11 - payable to MOP 10.3.6.13 Electrification / Service Connection 47.300 4586.34 4836.88 10.3.6.14 Encashment of Bank Guarantee 56.202 6.40 - 10.3.6.15 Stock Excess pending Investigation. 22.810 3.76 1.17 10.3.6.16 Sundry debtors for sale of power - 23.1 & 23.2 6417.19 5112.53 Credit Balances 10.3.6.17 Amount recoverable from employees - 28.409 8.33 1.06 material related 10.3.6.18 Advances paid to SLDC towards 28.910 39.41 - UI Charges 10.3.6.19 Advance paid to KPTCL towards 28.911 2501.60 1348.25 transmission charges

78 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

(` in Lakh) Account Sl. No Particulars As at 31.03.2017 As at 31.03.2016 Code

10.3.6.20 Advance paid to Power Company of 28.913 1.25 - Karnataka Limited 10.3.6.21 Advance made to M/s. PCKL towards 28.915 44.49 - short term power purchase 10.3.6.22 Advance made to M/s. PCKL towards 28.916 - 6.09 Non- POC bills Sub-Total 18374.06 16750.06 10.3.7 Inter Unit Accounts (Net) 31 to 37 - 2.63 Sub-Total - 2.63 TOTAL 52140.94 46733.75

10.3.6.21 (a) The Revenue expenditure of PCKL is being met out of seed money contributions made to PCKL by the ESCOMs. The expenditure is being allocated to ESCOMs in terms of MOU entered into between PCKL & ESCOMs. The seed money contributions made by the Company are accounted under Account Code 28.913 as advance. However, the expenditure allocated to the Company for FY 2016-17 is more than the advance paid by the Company to the extent of ` 124650/-. This amount is shown as payable under A/c 28.913.

NOTE: 11 SHORT TERM PROVISIONS (` in Lakh) Account Sl. No Particulars As at 31.03.2017 As at 31.03.2016 Code 11.1 Provision for Employee benefits 11.1.1 Provision for earned leave encashment 44.130 683.08 1035.88 11.1.2 Provision for Family Benefit Fund 44.143 207.76 10.26 Sub-Total 890.84 1046.14 11.2 Others 11.2.1 Provision for Income Tax (AY 2006-07) 46.800 93.57 93.57 Total 984.41 1139.71

79 II ASSETS ANNUAL 1 NON-CURRENT ASSETS NOTE: 12 -TANGIBLE ASSETS

(` in Lakh) REPOR

Original Cost Depreciation Net Block Value

A/c A/c T Deductions/ Deductions/ 2016-17 Particulars Additions Code As at Retirements As at code As at For Adjustments As at As at As at during the 01.04.2016 during 31.03.2017 01.04.2016 the Year during 31.03.2017 31.03 2016 31.03.2017 Year the Year the Year Tangible Assets Land: Free hold 10.101 658.01 -48.75 - 609.26 12.1 - - - - 658.01 609.26 Buildings 10.2 3563.04 2409.79 4.44 5968.39 12.2 894.87 154.99 1.18 1048.68 2668.17 4919.71 Hydraulic Works 10.3 252.71 20.06 - 272.77 12.3 100.23 13.59 - 113.82 152.48 158.96 Other Civil Works 10.4 71.70 - - 71.70 12.4 14.70 2.53 - 17.23 57.00 54.47 Plant & Equipments 10.5 36432.43 9683.87 3826.82 42289.48 12.5 8959.99 2093.71 663.61 10390.08 27472.44 31899.40 Lines, Cable Networks 10.6 166220.24 17962.91 1094.72 183088.44 12.6 61288.36 8359.78 913.27 68734.87 104931.88 114353.57 Vehicles 10.7 462.88 32.31 9.50 485.69 12.7 288.35 17.53 8.55 297.34 174.52 188.35 80 Furniture & fixtures 10.8 358.50 306.36 1.04 663.82 12.8 170.57 27.91 0.85 197.63 187.92 466.18 Office Equipments 10.9 85.22 148.20 0.85 232.57 12.9 50.88 7.54 0.31 58.11 34.34 174.47 Sub-Total - 208104.73 30514.76 4937.37 233682.13 - 71767.95 10677.58 1587.77 80857.76 136336.78 152824.37 Less: Assets Created out of - 51516.63 5783.06 - 57299.69 - - - - - 51516.63 57299.69 Govt. grants / Consumers Contributions Less: Depreciation withdrawn ------15446.10 2872.75 - 18318.85 -15446.10 -18318.85 on account of Govt. grants / Consumers Contributions Net Assets - 156588.10 24731.70 4937.37 176382.44 - 56321.85 7804.83 1587.77 62538.91 100266.26 113843.53

Land: Lease hold 10.102 129.77 86.07 7.29 208.55 - - 7.29 - - 129.77 208.55 SUB-TOTAL - 156717.88 24817.78 4944.66 176590.99 - 56321.85 7812.13 1587.77 62538.91 100396.03 114052.08

Previous Year's Figures 10 138883.94 22881.05 5047.12 156717.87 - 51592.27 6373.86 1640.78 56321.85 87291.67 100396.02

The account head 10.101 - Land free hold - includes an amount of ` 14.36 lakhs in respect of land purchased for Shikaripura Division from APMC, which has covenant that the land cannot be sold to any one until completion of 10 years period from the date of purchase. MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

NOTE: 13 INTANGIBLE ASSETS (` in Lakh)

Sl. Account Particulars As at 31.03.2017 No Code As at 31.03.2016

Total ------NIL------

NOTE : 14 CAPITAL WORKS IN PROGRESS (` in Lakh)

Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code

14.1 Capital Work in Progress 14.000 14512.09 11696.98 14.2 Revenue expenses pending 15.206 70.15 70.63 allocation over capital works - Interest 14.3 Preliminary expenditure on survey / 17.301 73.50 46.74 feasibility studies of projects pending allocation Sub Total 143.65 117.37 Total 14655.74 11814.35

14.4 An amount of ` 239.64 lakh towards interest on loan taken for capital works has been capitalized during the year.

NOTE: 15 INTANGIBLE ASSETS UNDER DEVELOPMENT (` in Lakh)

Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code

15.1 Software acquired/ Purchased 18.101 425.41 316.99 for internal use Total 425.41 316.99

NOTE : 16 NON- CURRENT INVESTMENTS (` in Lakh)

Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code

16.1 Investments: 16.1.1 Long Term Investments - (Un-quoted at cost.) 16.1.1.1 Investment in share capital of 20.291 251.00 251.00 Power Company of Karnataka Limited (25100 Equity shares of ` 1000 each) Total 251.00 251.00

NOTE : 17 DEFERRED TAX ASSETS (NET) (` in Lakh)

Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code

------NIL------

81 ANNUAL REPORT 2016-17

NOTE : 18 - LONG TERM LOANS AND ADVANCES (` in Lakh)

Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code

18.1 Deposit with Others 28.935 2083.06 2033.33 18.2 Income Tax paid in advance 28.821 3361.06 3139.18 18.3 MAT Credit Entitlement 28.802 1968.86 1661.85 18.4 Amount deposited with PF Authorities 46.930 748.13 748.13 Total 8161.11 7582.49

NOTE :19 OTHER NON CURRENT ASSETS (` in Lakh)

Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code

19.1 Long Term Trade Receivables 19.1.1 1. Secured and considered Good 23.1 & 23.2 2897.50 19663.52 19.1.2 2. Un-secured and considered Good 23.1 & 23.2 11634.83 14532.33 7175.38 26838.90 19.2 Subsidy Recoverable from GOK 19.2.1 Subsidy / Grants receivable 28.620 15749.60 8027.60 Sub-Total 15749.60 8027.60 19.3 Others 19.3.1 Receivables from KPCL, KPTCL and Other ESCOMs 19.3.1.1 M/s KPTCL 28.826, 28.831, 10023.65 9134.95 28.836, 28.841, 28.881 19.3.1.2 M/s BESCOM 28.827, 28.832, 8753.52 11394.52 28.837, 28.842 19.3.1.3 M/s HESCOM 28.829, 28.839, 29134.00 43827.00 28.844 19.3.1.4 M/s GESCOM 28.840,28.845 15394.12 29098.12 19.3.1.5 M/s CESCO 28.850,28.790 2979.24 4527.84 19.3.1.6 Amount receivable from CESCO on 28.851 22476.92 22476.92 account of excess of Assets over liability assumed by CESCO on bifurcation of undivided MESCOM as on 01.04.2005 19.3.1.7 M/s KPCL 28.865,28.874 4.09 4.09 Sub-Total 88765.54 120463.44 19.3.2 Assets not in Use 19.3.2.1 Written down value (WDV) of Faulty / 16.200 1509.20 1224.02 Dismantled Assets. Sub-Total 1509.20 1224.02 TOTAL 120556.67 156553.96

19.1.1(a) Dues from Mysore paper Mills (MPM): Trade receivables includes an amount of ` 11261.68 Lakhs being the amount due from M/s MPM, Bhadravathi. These dues includes principal amount of ` 9292.12 Lakhs and Interest to the extent of ` 1969.56 Lakhs outstanding as on 31.03.2017. Company has made all possible efforts for recovery of these dues. The discussion regarding settlement is still going on between MESCOM, MPM and GoK. Since, MPM is a Govt. of Karnataka undertaking, expecting revenue at the worst from GoK, no additional provision is made towards bad and doubtful debts.

19.2.1(a) The GOK vide order No. EN 34 PSR 2008 dated 19.08.2010 has ordered to refund the amount paid by the farmers during the period from 01.04.2001 to 31.03.2003 to them and the same is implemented by MESCOM. An amount of ` 3179.74 lakh is shown as receivable from GOK under this head. ` 4847.86 lakh pertains to the Tariff Subsidy for the years prior to FY 2004-05. Further company has accounted past subsidy of ` 7722.00 lakh as receivable from GOK as per G.O No: EN 67/PSR 2017 BANGALORE Dated 31.07.2017.

82 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

NOTE - 20 INVENTORIES, STORES AND SPARES (` in Lakh) Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code

20.1 Materials Stock Account 20.1.1 Materials Stock Account 22.610 3756.24 5642.46 20.1.2 Material imprest Account 22.641 11.90 11.90 20.1.3 Materials Account - Temporary works 22.731 4.28 5.53 20.1.4 Stock storage pending investigation/ 22.820 2.42 3.20 general Sub- Total 3774.84 5663.09 20.2 Written down value (WDV) of obsolete / 16.100 450.80 639.61 scrapped assets. TOTAL 4225.64 6302.70

NOTE : 21 TRADE RECEIVABLES (` in Lakh) Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code

21.1 Trade Receivables 21.1.1 Sundry Debtors for sale of Power – 23, 47.607, 20358.40 30260.43 LT, HT & Others (Excluding Un billed 47.609 revenue) 21.1.2 Sundry Debtors for Electricity Tax 23.300 3104.99 2905.29 Less : 21.1.3 Provision for withdrawal of Revenue 23.800 173.05 261.66 demand 21.1.4 Provision for Doubtful Dues from 23.900 6217.97 6391.02 6073.10 6334.76 consumers (Credit Account) Net Receivables against Supply of 17072.37 26830.96 Power 21.2 Sundry debtors outstanding for less than 11931.40 21017.70 6 months & considered good 21.3 Sundry debtors outstanding for more 5140.97 5813.25 than 6 months & considered good TOTAL 17072.37 26830.96

21.1.1 (a) The outstanding balance in Revenue Suspense Account representing collection from consumers pending allocation for want of details has been shown as deduction from the Sundry Debtors account since this amount is with the Company.

NOTE 22 : CASH AND CASH EQUIVALENTS (` in Lakh) Account Sl. Particulars As at 31.03.2017 As at 31.03.2016 No Code 22.1 Balances with Banks 22.1.1 Collecting Bank Accounts 24.300 1619.14 2062.52 (Non-Operative) 22.1.2 Disbursement Bank Account (Operative) 22.1.2.1 State Bank of Mysore 24.401 9.37 0.07 22.1.2.2 State Bank of India 24.402 0.25 1.20 22.1.2.3 Canara Bank 24.404 2.70 8.76 22.1.2.4 Syndicate Bank 24.405 13.74 23.68 22.1.2.5 Vijaya Bank 24.409 17.39 45.96

83 ANNUAL REPORT 2016-17

(` in Lakh) Account Sl. Particulars As at 31.03.2017 As at 31.03.2016 No Code 22.1.2.6 State Bank of Mysore 24.411 47.83 258.76 22.1.2.7 State Bank of India 24.412 33.00 11.63 22.1.2.8 Canara Bank 24.414 193.79 185.23 22.1.2.9 Syndicate Bank 24.415 1073.54 692.59 22.1.2.10 Corporation Bank 24.424 33.99 89.73 22.1.2.11 Punjab Sind Bank 24.425 30.10 0.29 22.1.2.12 AXIS Bank 24.427 0.07 0.07 22.1.2.13 Karnataka Bank 24.428 20.06 10.31 22.1.2.14 Indian Bank 24.429 0.24 0.99 22.1.2.15 Union Bank of India 24.430 3.68 0.00 Sub-Total 1479.75 1329.27 22.2.1 Cash on Hand 24.110, 66.28 96.29 24.210 22.2.2 Cheques/drafts on hand 24.110 481.94 548.22 311.50 407.79 22.3 Others 22.3.1 Postage stamps on hand 24.120 2.79 1.84 22.3.2 Remittance to head office -in transit 24.500 2.06 - account 22.3.3 Transfers from Head Office-In Transit 24.600 20.77 71.86 Account 22.4 Fixed deposits in Banks 22.4.1 Margin Money towards L.C. 20.280 250.00 271.30 22.4.2 Un-utilised fund of IPDS Scheme 20.280 955.00 - 22.4.3 Un-utilised fund of DDUGJY Scheme 20.280 2374.00 - 22.4.4 Others 20.280 3.84 3.84 Sub-Total 3582.84 275.14 TOTAL 7255.57 4148.42

NOTE 23 : SHORT TERM LOANS AND ADVANCES (` in Lakh)

Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code

23.1 Capital Advance 23.1.1 Secured Considered good 23.1.1.1 Advances to Suppliers (Considered 25.501 1034.05 755.70 good & Fully Secured) 23.1.1.2 Advances to Contractors 26.6 2485.62 3519.67 1541.86 2297.56 23.1.2 Un-Secured Considered good 23.1.2.1 Loans and advances to Staff - 27.1 - - Interest bearing 23.1.3 Loans and advances to Staff - Interest Free 23.1.3.1 Travel advance 27.202 2.64 2.62 23.1.3.2 Festival advance 27.203 40.66 34.91 23.1.3.3 Medical advance 27.204 26.47 22.67 23.1.3.4 Advances to staff against expenses 27.205 47.35 8.99 23.1.3.5 Transformers / meters etc. issued for 27.210 0.22 8.68 repairs to the Company personnel Sub-Total 117.34 77.87 23.2 Advance paid to Power Company of 28.913 - 4.69 Karnataka Limited 23.3 Advance paid to M/s. UPCL 28.957 1666.00 1666.00 TOTAL 5303.01 4046.12

84 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

23.1.1(a) Advances given to Suppliers and Contractors are given against the Bank guarantee for the supply of Materials.

NOTE 24 : OTHER CURRENT ASSETS (` in Lakh)

Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code

24.1 Sundry Debtors for Un Billed Revenue 23.400 16971.13 15158.22 24.2 Sundry Debtors- Trading Account 28.100 217.43 241.77 24.3 Income accrued and due on Bank 28.210 21.82 22.12 Deposits 24.4 Income accrued and due - others 28.290 34.84 22.85 24.5 Recoverable from GOK 24.5.1 Subsidy receivable from GOK towards 28.626 - - - BJ/KJ consumers 24.5.2 Amount receivable from State Govt. 28.627 28511.34 7402.29 towards free supply of power to IP Sets upto 10 HP Sub-Total 28511.34 7402.29 24.6 Recoverable from Employees 24.6.1 Amount recoverable from Employees 28.401 8.92 0.90 24.6.2 Amount recoverable from Ex-Employees 28.402 0.43 - 24.6.3 Amount recoverable from employees - 28.409 0.61 0.15 material related Sub-Total 9.96 1.05 24.7 Others 24.7.1 Claims for Loss / Damage to Capital 28.749 30.08 32.94 Assets 24.7.2 Amount receivable from Panchayaths 28.801 1036.03 603.92 towards energisation of Rural Water Supply works 24.7.3 Expenses recoverable from suppliers / 28.810 3.95 3.31 contractors 24.7.4 Amount receivable from M/s MSTC Ltd. 28.819 0.25 - towards TDS on Service charges paid by Company 24.7.5 Prepaid Expenses 28.820 38.30 9.21 24.7.6 Excess repayments of State Govt. Loans 28.857 - - 24.7.7 Receivable from other states towards 28.872 1.54 17.10 reactive energy charges 24.7.8 Receivable from others 28.898 & - 0.35 28.899 24.7.9 Amount receivable from P&G Trust 28.907 58.29 269.19 24.7.10 Advances paid to SLDC towards 28.910 - 171.68 UI Charges 24.7.11 Advance made to M/s. PCKL towards 28.915 - 2.79 short term power purchase 24.7.12 Advance made to M/s. PCKL towards 28.916 71.99 - Non- POC bills 24.7.13 Advance made to M/s. PCKL towards 28.917 15.00 20.00 payment Legal charges 24.7.14 Advance made to M/s. KREDL towards 28.918 14.07 21.53 beneficiary contribution against supply of LED Solar Lanterns 24.7.15 Regulatory Assets - KERC 28.922 90770.93 44954.00 24.7.16 Deposits with Banks towards Bank 28.936 3.00 - Guarantee 24.7.17 M/s. Maruthi Power Gen (Kabini) 41.121 3.81 1.37 Pvt. Ltd., 24.7.18 M/s. Maruthi Power Gen Hemavathi 41.122 0.89 - Pvt.Ltd., 24.7.19 M/s. BPCL ( NERIA) 41.124 1.41 1.15 24.7.20 M/s. Sagar Power (Dandela) Pvt. Ltd 41.203 1.93 2.07 24.7.21 M/s. Soham Mannapitlu Power Pvt. Ltd 41.204 1.93 1.57 24.7.22 M/s. Sagar Power (Neerukatte) Pvt. Ltd 41.205 - 2.38

85 ANNUAL REPORT 2016-17

(` in Lakh) Sl. Account Particulars As at 31.03.2017 As at 31.03.2016 No Code

24.7.23 M/s. AMR Power Pvt. Ltd 41.206 5.65 - 24.7.24 M/s. SRM Power Pvt. Ltd 41.212 0.05 0.03 24.7.25 M/s. GVP Infra Power Projects 41.217 4.07 4.57 24.7.26 M/s. Soham Phalguni Renewable 41.220 1.22 0.91 Energy Pvt Ltd 24.7.27 M/s. Devar power Ltd 41.221 0.61 0.40 24.7.28 Receivable from PCKL - Transfer of 28.919 21959.03 - GP dues as on 31.3.2015 towards securitisation Sub-Total 114024.03 46120.47 24.8 Inter Unit Accounts (Net) 31 to 37 10.57 - Sub-Total 10.57 - TOTAL 159801.12 68968.77

24.8 (a) IUA Balance includes debit Balance of ` 40000/- pertaining to FY-15, debit Balance of ` 713994 of FY-17 and credit Balance of ` 302780/- Pertaining to the period prior to Fy 2005-06. 24.7.15(a) Regulatory Asset: Regulatory Assets to the extent of ` 44954.00 Lakhs are created in the accounts for FY 2015-16 by computing the provisional gap expected to be considered by Hon'ble KERC for inclusion in the tariff revision of future year/s. Hon'ble KERC has arrived at a Revenue Gap of ` 39574.00 lakhs and carried forward the same for allowing year 2017-18. Hence excess Regulatory Asset created to the extent of ` 5380.00 lakh has been written off during this year itself and balance amount of ` 39574.00 lakh will be reversed during FY 2017-18. Further fresh regulatory Asset to the extent of ` 51196.93 lakh is created in the accounts for FY 2016-17 by computing the provisional gap expected to be considered by KERC for inclusion in the tariff revision of future years. 24.7.28.a Securitisation of Gram Panchayat Dues: Pursuant to G.O. No. EN 3 PSR 2016/P3 Dated 31.03.2017, the Company has transferred the accumulated dues from Rural Local bodies together with interest upto 31.03.2015 amounting to ` 21959.00 lakh to PCKL for securitisation of such receivables by PCKL in order to get loans from Banks and utilise the proceeds of such loans to clear the dues of KPCL. Though PCKL has expressed inability to account this in their books as of 31.03.2017, vide their letter dated 14.07.2017, the Company has transferred the dues from local bodies as above to PCKL to comply with the G.O.

NOTE : 25 REVENUE FROM OPERATIONS (` in Lakh)

Sl. Account Particulars For the year 2016-17 For the year 2015-16 No Code

25.1 Revenue from Operations 25.1.1 REVENUE FROM SALE OF POWER–LT 25.1.1.1 Bhagya jyothi Scheme. 61.101 1024.76 959.00 25.1.1.2 Revenue from sale of power BJ/KJ 61.402 1027.01 924.53 up to 18 Units 25.1.1.3 Domestic combined lighting, heating 61.110 64810.69 57252.85 and motive power, Private, Professional 61.111 and unaided educational institutions 25.1.1.4 Commercial and Non-Industrial Lights 61.115 28983.72 26462.99 and Fans. 25.1.1.5 Irrigation Pump Sets (10 HP & below)/ 61.119 77557.62 50177.25 Water Lifting. 25.1.1.6 Irrigation Pump sets (above 10 HP)/ 61.120 63.17 55.81 Water Lifting. 25.1.1.7 Water supply-V.P, T.P and Others 61.125 5551.62 4650.06 25.1.1.8 Private Horticultural Nurseries, Coffee, 61.121 405.26 303.05 Tea, Coconut and Areca nut Plantations 25.1.1.9 Industrial, Non-Industrial, Heating and 61.129 - 9318.34 8851.96 Motive Power including Lighting 61.133 25.1.1.10 Public Lighting-V.P, T.P and Others 61.140 4877.89 3607.04 25.1.1.11 Temporary Power Supply - Non- 61.145 2715.00 2478.71 commercial lights and fans and other small appliances. Sub-Total 196335.08 155723.25

86 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

(` in Lakh)

Sl. Account Particulars For the year 2016-17 For the year 2015-16 No Code

25.1.2 Revenue from Sale of Power – HT 25.1.2.1 Public Water Supply & Sewerage 61.250 4412.61 3875.34 Pumping 25.1.2.2 Industrial, Non-industrial and 61.255 44382.56 41780.86 Commercial purposes & Railway Traction 25.1.2.3 Commercial. 61.256 16398.65 14782.46 25.1.2.4 Hospitals and Educational Institutions 61.257 2641.68 2506.99 maintained by Govt/ Local bodies 25.1.2.5 Hospitals and Educational Institutions 61.258 8682.64 8601.77 maintained by Others 25.1.2.6 Irrigation and Agricultural Farms, Lift 61.260 449.64 236.73 Irrigation Societies, Lift Irrigation Schemes and Govt., Horticultural Farms 25.1.2.7 Private Horticultural Nurseries, Coffee 61.261 10.58 11.74 and Tea Plantations 25.1.2.8 Residential apartments and colonies 61.271 1191.46 1014.67 availing power supply independently 25.1.2.9 Temporary power supply 61.290 682.06 953.57 Sub-Total 78851.88 73764.13 TOTAL REVENUE FROM OPERATIONS 275186.96 229487.38 25.2 Fuel cost Adjustment charges LT & HT 61.400 1787.91 1405.75 25.3 Less: Withdrawal of Revenue Demand 83.830, 76.08 146.31 83.831, 83.832, 83.833 REVENUE FROM OPERATIONS 276898.79 230746.82 25.4 OTHER REVENUE FROM OPERATIONS 25.4.1 Wheeling charges recoveries 61.800 - ` - 25.4.2 Miscellaneous charges from Consumers 25.4.2.1 Service Connection charges 61.904 839.42 558.08 25.4.2.2 Other Receipts from consumers 61.906 162.93 137.21 25.4.2.3 Amount collected for green tariff 61.907 77.21 22.62 25.4.2.4 Incentives received 62.918 1609.53 2181.49 25.4.2.5 Other income relating to purchase of 62.919 839.34 676.99 power Sub- Total 3528.43 3576.39 25.5 Regulatory Assets 25.5.1 Income on account of Regulatory 61.910 45816.93 34852.00 Assets/ Truing up Subsidy. NET REVENUE FROM OPERATIONS 326244.15 269175.21

25.6 Total Revenue from sale of energy during 2016-17 includes ` 16971.13 Lakh in respect of revenue accrued but pending billing at the year end as against a sum of ` 15158.22 Lakh during the previous year. 25.7 During the Year the amount to be received from the GoK as subsidy towards free power supply to IP set consumers 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 are ` 77038.00 Lakh and ` 1027.01 lakh respectively. As against this GoK has released an amount of ` 51599.00 lakh and ` 1027.01 lakh for IP Set and BJ/ KJ installations respectively. Further GoK has also released ` 4331.00 lakh against the arrears subsidy of previous years.

87 ANNUAL REPORT 2016-17

NOTE: 26 OTHER INCOME (` in Lakh) Sl. Account Particulars For the year 2016-17 For the year 2015-16 No Code

26.1 Interest Income 26.1.1 From Consumers 26.1.1.1 Delayed payment charges from 61.905 3012.00 4856.04 consumers 26.1.2 From Others 26.1.2.1 Interest on Bank Fixed Deposits 62.222 70.38 24.86 26.1.2.2 Interest earned on un-utilized funds 62.290 -32.11 - payable to MOP - Debit Account Sub-Total 3050.27 4880.90 26.2 Other Non-operating Income 26.2.1 Interest on Loans and Advances to 62.240 0.98 18.72 Licenses 26.2.2 Interest on advance to Suppliers/ 62.260 3.72 0.86 Contractors 26.2.3 Interest on Savings Bank Account 62.270 1.57 5.45 26.2.4 Profit on sale of stores 62.330 10.16 7.17 26.2.5 Sale of scrap 62.340 159.56 166.00 26.2.6 Other Miscellaneous receipts from 62.360 1.01 0.71 Trading 26.2.7 Gain on Sale of Assets 62.400 0.02 0.01 Sub-Total 177.02 198.92 26.3 Miscellaneous Receipts 26.3.1 Rental from Staff Quarters 62.901 124.01 118.12 26.3.2 Rental from others 62.902 4.41 10.58 26.3.3 Excess found on physical verification 62.905 0.61 3.98 of Materials Stock 26.3.4 Rebate for collection of Electricity Duty 62.916 50.97 49.35 26.3.5 Miscellaneous Recoveries 62.917 4510.34 1476.26 26.3.6 Recoveries for Theft of power 61.710 1.21 1.52 26.3.7 Interest received from Income Tax 62.920 14.51 33.10 Department Sub-Total 4706.06 1692.91 26.4 Income relating to previous years : 26.4.1 Excess provision for Interest and 65.700 24.96 6.36 Finance Charges in prior periods 26.4.2 Other Excess provision in prior periods 65.800 6978.60 797.80 26.4.3 Other Income relating to prior periods 65.900 904.46 115.43 Sub-Total 7908.02 919.59 TOTAL 15841.37 7692.32

26.1.1 (a) Since the arrears in respect of IP set Consumers having connected load upto 10 HP is freezed with effect from 01.08.08, the Company has stopped charging interest on this arrears from the year 2011-12. 26.5 Electricity Taxes: The Electricity Tax collected from Consumers and payable to GOK during FY 2016-17 is ` 10078.61 lakh. Out of this GoK has adjusted ` 10194.00 lakh to Tariff Subsidy receivable from GoK during the year.

88 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

NOTE : 27 PURCHASE OF POWER (` in Lakh) Sl. Account Particulars For the year 2016-17 For the year 2015-16 No Code

27.1 Purchase of Power 27.1.1 M/s. KPCL 70.108 71267.18 83680.01 27.1.2 M/s. NTPC RSTPS 70.110 25641.16 16877.89 27.1.3 M/s. Madras Automic Power Station 70.111 394.87 372.78 27.1.4 M/s. Neyveli Lignite Corporation Ltd., 70.112 13390.65 8114.47 27.1.5 M/s NPCIL-Kaiga 70.114 4799.73 5487.95 27.1.6 M/s. Sandur Power Company Ltd., 70.115 2186.66 2293.50 27.1.7 M/s. Sahyadri Power Company Ltd., 70.116 19.91 19.05 27.1.8 M/s. Master Power 70.118 122.20 151.90 27.1.9 M/s. Subhash Kabini 70.119 1285.30 1741.06 27.1.10 M/s. Graphite India Ltd., 70.120 39.17 150.23 27.1.11 M/s. Maruthi Power Gen(I) Kabini Pvt.Ltd., 70.121 58.63 140.69 27.1.12 M/s. Maruthi Power Gen Hemavathi 70.122 -0.89 62.78 Pvt. Ltd., 27.1.13 M/s. Moodabagil Power Pvt. Ltd. 70.123 23.00 34.87 27.1.14 M/s. Bhoruka power corporation Ltd., 70.124 579.21 634.42 (NERIA) 27.1.15 M/s. Mrujara Power Plant 70.126 37.06 62.10 27.1.16 M/s. UPCL 70.132 26659.30 15983.25 27.1.17 Wind Mill Projects 70.140 10187.52 9614.88 27.1.18 Solar Power Projects 70.150 5572.64 2645.13 27.1.19 Solar Roof-top P.V. Generation plants 70.501 194.85 16.73 27.1.20 M/s. Mysore Paper Mills Ltd., 70.195 - 63.31 27.1.21 M/s. NTPC-VVNL 70.198 2373.10 2390.78 27.1.22 M/s. Shamili Hydel Power Project 70.202 553.66 660.68 27.1.23 M/s. Sagar Power (Dandela) Pvt. Ltd., 70.203 445.22 482.84 27.1.24 M/s. Soham Mannapitlu Power Pvt. Ltd., 70.204 870.59 824.44 27.1.25 M/s. Sagar Power (Neerukatte) Pvt. Ltd., 70.205 435.67 567.86 27.1.26 M/s. AMR Power Pvt. Ltd. 70.206 - - 27.1.27 KPTCL transmission charges 70.161 24838.12 21870.34 27.1.28 SLDC Charges 70.162 157.66 170.97 27.1.29 PGCIL transmission charges 70.163 11170.87 7181.08 27.1.30 Transmission charges to M/s TNEB 70.164 4.75 3.28 27.1.31 M/s SRM Power Pvt Ltd 70.212 219.85 227.13 27.1.32 PGCIL NON POC bill 70.213 25.50 24.03 27.1.33 M/s. Kundanlkulam – Non POC charges 70.214 4834.74 1421.96 27.1.34 M/s.Welspun Solar – Non POC charges 70.215 - - 27.1.35 M/s. Vasgi Power Projects Ltd 70.216 27.13 30.26 27.1.36 M/s.GVP Infra Power Projects Ltd. 70.217 252.84 185.83 27.1.37 M/s.Jurala Power Project 70.218 472.72 478.57 27.1.38 M/s NLC Tamilnadu Power Ltd 70.219 4799.23 2130.31 27.1.39 M/s Soham Phalguni Renewable 70.220 492.90 224.46 Energy Pvt Ltd 27.1.40 M/s Devar Power Ltd 70.221 170.08 127.24 27.1.41 STOA UI charges 70.222 - - 27.1.42 M/s Damodhar Valley Corporation Ltd. 70.223 11916.20 1974.34 Sub-Total 226518.98 189123.40 27.2 Purchases from others (Other than Long term PPAs) 27.2.1 UI Charges credits received 70.171 - - 27.2.2 UI charges 70.172 1259.40 1422.86 27.2.3 Short term power purchased from 70.200 50.01 - IEX / PXI 27.2.4 Non PPA Co-generation Units 70.208 2940.47 11335.10

89 ANNUAL REPORT 2016-17

(` in Lakh) Sl. Account Particulars For the year 2016-17 For the year 2015-16 No Code

27.2.5 JSW power trading Company limited 70.211 9848.36 3022.40 27.2.6 BMM Ispat Ltd., 70.211 596.34 2759.39 27.2.7 Nirani Sugars Ltd 70.211 55.47 195.47 27.2.8 Hare Krishna Metalics & Others 70.211 - 25.93 27.2.9 Gujarath Urja Vikas Nigam Ltd., 70.211 - - 27.2.10 Athani Sugars Ltd 70.211 - 298.06 27.2.11 M/s GMR Energy ltd 70.211 - 486.37 27.2.12 M/s Tata Power Trading Ltd 70.211 577.22 2073.34 27.2.13 NSL Sugars Ltd 70.211 8.61 12.13 27.2.14 NSL Sugars Koppa 70.211 38.15 106.63 27.2.15 NSL Sugars TB 70.211 51.29 164.31 27.2.16 M/s Global Energy 70.211 - 185.48 27.2.17 M/s TATA PTCPL 70.211 147.39 38.26 27.2.18 M/s Sathish Sugars 70.211 41.46 267.78 27.2.19 M/s Reliance Energy 70.211 - - 27.2.20 M/s Dhruvadesh Meta Steel 70.211 - 34.33 27.2.21 M/s PTCIL 70.211 74.57 564.92 27.2.22 M/s Mittal Steel 70.211 172.03 764.47 27.2.23 M/s Balakeshwar 70.211 6.66 68.28 27.2.24 M/s JSW PTC 70.211 1861.42 6739.88 27.2.25 M/s Kalyani Power/ Pune Power Ltd 70.211 - - 27.2.26 M/s Prabhulingeshwara sugars 70.211 30.64 - 27.2.27 M/s Fortune five hydel projects Ltd 70.211 - - 27.2.28 M/s Bradavavan Hydro 70.211 - - 27.2.29 M/s Ambuthirtha Power Pvt Ltd 70.211 14.16 26.91 27.2.30 Tunga Badra Hydro Energy 70.211 27.73 44.82 27.2.31 M/s Ugar Sugar works Ltd 70.211 - 0.43 27.2.32 M/s Davanagere Sugar Company Ltd. 70.211 - 2.38 27.2.33 M/s IEPL 70.211 - 63.29 27.2.34 M/s. Coregreen Sugars 70.211 10.81 - 27.2.35 M/s. EID Parry (India) Ltd-Bagalkot 70.211 38.78 - 27.2.36 M/s. EID Parry (India) Ltd-Halliyal 70.211 47.56 - 27.2.37 M/s. GEM Sugars Ltd 70.211 44.15 - 27.2.38 M/s. Godavari Biorefineries Ltd., 70.211 91.79 - 27.2.39 M/s. Jamkhandi Sugars Ltd I 70.211 27.50 - 27.2.40 M/s. Jamkhandi Sugars Ltd II 70.211 16.71 - 27.2.41 M/s. KPR Sugars Ltd. 70.211 25.78 - 27.2.42 M/s. Manali Sugars Ltd., 70.211 1.05 - 27.2.43 M/s. Shiraguppi Sugars Ltd., 70.211 25.66 - 27.2.44 M/s. Shivashakthi Sugars Ltd., 70.211 28.11 - 27.2.45 M/s. Soubhagyalaxmi Sugars 70.211 2.89 - 27.2.46 M/s. Sri Chamundeshwari Sugar 70.211 24.57 - 27.2.47 M/s. Renuka Sugars Ltd.,(Burlatti)/ 70.211 20.08 - (Athani) 27.2.48 M/s. Renuka Sugars Ltd., (Havalga) 70.211 45.27 - 27.2.49 M/s. Renuka Sugars Ltd (Munoli) 70.211 10.45 - 27.2.50 M/s. Vijayanagar Sugar Pvt Ltd., 70.211 7.06 - Mundargi 27.2.51 M/s. Sri Balaji Sugars & Chemicals 70.211 64.94 - Pvt Ltd (Other Non recurring bills) 27.2.52 Un-scheduled Energy & Infirm Energy 70.211 385.35 - 27.2.53 M/s green Infra wind power generation Ltd 70.211 10.08 - Sub-Total 18729.97 30703.22 27.3 Power Purchase cost accounted on 70.209 8921.80 3229.60 basis of energy balancing TOTAL 254170.75 223056.22

90 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

27.4 With effect from 1.4.2016, share of power project capacity allocated to MESCOM has been revised vide GOK notification No. EN 22 PSR 2016 dated 18.03.2016. Power Purchase Cost is being accounted for and paid as per the above share which is readjusted at the end of the year based upon actual drawal of energy for the year.

27.5 MESCOM is arranging payment to the power suppliers based on the notional share basis fixed and notified by the Govt. of Karnataka from time to time. Based on the reconciled energy balancing report furnished by LDC upto the year 2016-17, the results have been incorporated in the books of account of MESCOM.

27.6 M/s NLC Ltd. :M/s NLC Ltd., have filed truing up petition for the period 09-14 and tariff petition for the period 14-19 as per CERC Tariff Regulation 2009 and it continued to bill provisionally at the tariff approved by the Commission and applicable as on 31.03.2014 for the period from 01.04.2014 and on finalization of tariff by CERC,the amount under paid/paid in excess along with simple interest shall be paid to/recovered from NLC.

27.7 Kaiga , MAPS : The rates for PP from Kaiga Units I to IV and MAPS are as per notifications of DAE7/20/2011-Power/1623 and 7/19/2011-Power/1570 respectively both dated 08.02.2012 and are valid till 30.06.2015. However the same rates are being continued beyond June 2015 as per Article 8.1.3 of the PPA dated 08.10.08 as the new tariff is yet to be notified by DAE, GOI and on finalization of tariff by DAE the amount under paid/paid in excess shall be paid to/ recovered from Kaiga and Maps.

27.8 In the case of certain CGS Thermal stations, CERC regulations allow taking NAPAF at 83% instead of 85% in view of uncertainty of assured supply of coal on sustained basis till it is reviewed. Based on the above regulation some CGS thermal stations billings have been admitted at 83% NAPAF for computation of capacity charges. CERC is yet to review this and on finalization of the review by CERC, the amount under paid/paid in excess shall be paid to/recovered from the parties concerned.

27.9 M/s GMR Energy Ltd. : PCKL & ESCOMs have filed Civil Appeal No. 8439-40/2014 Vs M/s GMR Energy Ltd., & Others against APTEL order dated 23.05.2014 in Appeal No. 303/2013 & 37/2013 filed by ESCOMs and M/s GMR Energy Ltd., respectively. The issue is with respect to tariff payable for the energy supplied under Section-11 during the period Jan-09 to May-09. As per the conditional stay order dated 22.11.2015 of Hon’ble Supreme Court of India, MESCOM has discharged its share of liability (principal) of ` 426 lakhs on 22.01.2016. The case is still pending for adjudication.

27.10 M/s J. K Cements & M/s Himatsingka Seide Ltd.: PCKL & ESCOMs have filed Civil Appeal No. 3577-78 /2015 before Hon’ble Supreme Court against APTEL order dated 12.11.2014 in RP No. 11/2014. The issue is regarding determination of tariff for the energy supplied under Section-11during the period Apr-10 & May-10 to Jun-10. As per the interim order dated 13.05.2016 of Hon’ble Supreme Court, MESCOM has filed before Hon’ble KERC Corporate Guarantees issued in favour of M/s J.K Cements & M/s Himatsingka Seide Ltd., to the extent of ` 5.69 Lakh & ` 18.76 Lakh respectively.

27.11 M/s TATA Power Ltd.: PCKL & ESCOMs have filed Civil Appeal No. 21462/2014 before the Hon’ble Supreme Court of India, on the dismissal order dated 02.05.2014 passed by Hon’ble APTEL in Appeal No. 330/2013 field by BESCOM, MESCOM & PCKL, in respect of reimbursement claim of ` 1630 lakhs of MAT paid during 2006-07 to 2009-10 by M/s TATA Power Ltd., The case is pending for adjudication. This includes MESCOM’s share of ` 300 lakhs.

27.12 UPCL: In respect of 1200 MW capacity project of M/s UPCL, Hon’ble CERC has determined the tariff vide order dated 10.07.2015 and it is subject to truing up in terms of Regulation 6 of the 2009 tariff regulations. The truing up Petition No. 07/GT/2016 is pending for disposal at CERC. As CERC is yet to redetermine the tariff, the same provision of ` 4200 lakhs for the period from 11.11.2010 to 31.01.2013 made in FY 14 is being continued as contingent liability. Further, the tariff invoices of UPCL are being admitted provisionally by MESCOM to avoid delay in payment. However PCKL on behalf of all ESCOMs has worked out the monthly bill amount and also dues payable to UPCL as per CERC order dated 10.07.2015. PCKL is yet to decide and intimate the difference in bill amount to be booked by ESCOMs. UPCL has invoked “force majure” clause for Bills raised during 2015-16 by taking the number of days as 342.66 which has not been considered by MESCOM. The Coal Jetty consumption for the FY 2015-16 is being charged at average tariff for the month and is being deducted in the monthly billing whereas UPCL is considering energy charge rate only. However the treatment of Coal Jetty consumption is under adjudication in the Court.

27.13 KPCL Dues: As per MESCOM books of Accounts, the outstanding dues payable to KPCL as on 31.03.2017 is ` 80501 lakhs. The demand and balance were reconciled upto FY 2011-12 on 27.02.2013.

27.14 In the case of Central Generating Stations, where the PAF is less than 83%, the NAPAF is considered as 83% for recovery of fixed charges in accordance with Regulation 36 of CERC Tariff Regulations 2014.

27.15 Interest on KPCL Dues: It was decided in the KERC meeting held on 28.05.2014 that, in respect of KPCL, arrears of both energy charges payable and the interest there on up to 31.03.14 need to be dealt with separately and resolved with the financial support of Government of Karnataka. Accordingly, MESCOM has not provided interest from Fy-16 on KPCL dues pending as on 31.03.2014 and the same was brought to the notice of GoK vide letter dated 10.06.2016. However, the interest accounted to the extent of ` 42835 lakhs up to 31.03.2015 is now being continued.

91 ANNUAL REPORT 2016-17

27.16 NTPC Simhadri STPS : In the case of Simhadri STPS of NTPC Ltd., the tariff for FY 15 to 19 is yet to be determined by Hon’ble CERC. M/s NTPC Ltd., has provisionally continued to claim the capacity charges as per tariff determined vide order dated 02.11.2015 for FY 12 to FY 14 with correction in ROE, the impact of which will be adjusted as and when the tariff is finalized.

27.17 The Energy Balancing Dues and other dues relating to short term and medium term power transactions among ESCOMs are reconciled up to 31.03.2017.

27.18 GoK Vide Government order dated 16.09.2015 has invoked section-11, in which it was ordered that all generators existing and operating in Karnataka State to operate and maintain generating stations to the maximum exportable capacity with a provisional tariff of ` 5.08 per unit which is subject to determination of final tariff by KERC. KERC in the common order dated 18.08.16 has determined the tariff for the energy supplied under section 11 at ` 4.67 per unit. However there is a stay order for the said order of KERC.

27.19 M/s AMR: M/s AMR was having power purchase agreement with MESCOM which was executed on 02.08.2006. The tariff fixed for the project for sale of power to MESCOM was ` 2.80/unit. MESCOM filed a petition in OP No. 37/2012 on 09.08.2012 before Hon’ble KERC praying for quashing the Notice of Termination dated 22.07.2011 served by the generator. KERC passed an interim order dated 23.08.2012 to maintain status quo pending disposal of the main petition. The generator filed an appeal before Hon’ble ATE in appeal No. 223/2012 questioning the interim order of KERC dated 23.08.2012 to maintain the status quo. Hon’ble ATE disposed the appeal No. 223/2012 in the order dated 04.01.2013 with a direction to Hon’ble KERC to dispose the matter pending in OP No.37/2012 as expeditiously as possible and to pass appropriate order in accordance with law. Hon’ble KERC in the order dated 14.08.2013 dismissed the petition filed by MESCOM in OP No. 37/2012. Aggrieved by the order dated 14.08.2013 of Hon’ble KERC in OP No.37/2012, MESCOM filed an appeal No. 275/2013 seeking to execute wheeling & banking agreement for wheeling of energy. Hon’ble ATE passed an interim order on 27.03.2014 directing MESCOM to execute wheeling & banking. As a last resort, MESCOM had also challenged the Order dated 17.10.2014 of Hon’ble ATE in appeal no. 275/2013 before the Hon’ble Supreme Court of India in Civil Appeal No. 1665/2015. The Hon’ble Supreme Court of India while disposing of the Civil Appeal No.1665/2015 in the order dated 15.09.2016 has confirmed the order of APTEL.

In the letter dated 08.05.2017, M/s AMR power Pvt Ltd, has claimed an amount of ` 19070 lakhs including interest as receivable from MESCOM stated to be the liability of MESCOM towards energy supplied in the non-PPA period from 22.07.2011 to 16.10.2014. Since the claim is stated to be as per Hon’ble Supreme Court order the matter has been placed before MESCOM Board of Director meeting scheduled on 22.07.2017 seeking approval for mutual negotiations.

27.20 KPTCL had raised a demand at 26.23 paise per unit for the transmission of electricity for the year 2006-07 against which the company has admitted the bills at 19.42 paise per unit as per KERC order. However, KPTCL has appealed against the order of KERC with Appellate Tribunal for Electricity, New Delhi. The ATE has passed on order requiring KERC to carry out certain modification in its transmission tariff. The KERC preferred an appeal against the order of ATE at Hon’ble Supreme Court, New Delhi. The appeal is pending for disposal before the Hon’ble Supreme Court. MESCOM may contingently be liable for an amount of ` 1974 lakhs. If orders are passed in favour of KPTCL.

27.21 KPTCL vide letter No FA(A&R)/C(AP&A)./DC(A&C)/AAO1/Cys-104 dated 15.03.2007 has communicated to MESCOM to create Regulatory Assets & Regulatory Liabilities for additional fixed cost paid by KPTCL to M/s Tannir Bhavi Power Company Ltd, based on the order of ATE in which the appeal of KPTCL was allowed for passing the cost on Consumers. The order of the ATE has been contested by FKCCI and KERC before the Hon’ble Supreme Court of India and the same is pending. MESCOM may contingently be liable to pay a sum of ` 4538 lakhs, of principal and ` 122 lakhs as interest to KPTCL by collection through tariff from consumers based upon the finalization of issue by Hon’ble KERC.

27.22 M/s. MPM: MESCOM has entered into PPA with M/s MPM Ltd., on 13.09.2006 for purchase of surplus power generated from the captive power plant at the tariff of ` 2.20/KWh with 2% annual escalation on base tariff for a period of 10 years from 01.11.2000. From the 10th year onwards i.e from 01.11.2010, the tariff has to be negotiated based on operating cost and incentives. KERC has also directed MESCOM vide letter dated 22.12.2010 to negotiate the tariff. As MPM Ltd., has not placed any proposal for tariff fixation, it was intimated to the firm vide letter dated 18.04.2011 that the 10th years tariff of ` 2.596/KWh would be applied till finalization of the tariff. In this regard, a joint meeting was also convened at MESCOM, Corporate Office on 18.01.2013. As decided in the meeting the firm was requested vide this office letter dated 30.01.2013 to furnish a detailed tariff proposal along with a cost audit report, working sheet for tariff with technical parameters. But the firm has not come forward with the details so far. Hence the exported energy is being billed at ` 2.596/Kwh without any escalation from 01.11.2010 and is adjusted against the dues of their EHT installation bearing RR No. BCHT2.

92 ANNUAL REPORT 2016-17

27.23 KPCL had preferred supplementary claim in March 2017 relating to BTPS unit-1 for revision of fixed charges for the 2008-09 to 2015-16 due to revision in the debt equity ratio from 80:20 to 88.65:11.35, amounting to `12.82 crs. However, it appears that, there are some discrepancies in the claim. The same has to be reconciled and will be accounted in the ensuing year.

NOTE : 28 EMPLOYEE COSTS (` in Lakh)

Sl. Account Particulars For the year 2016-17 For the year 2015-16 No Code

28.1 Salaries and Wages 28.1.1 Salaries 75.100 13591.61 12135.53 28.1.2 Over Time 75.200 214.39 266.30 28.1.3 Dearness Allowance 75.300 4442.23 3713.80 28.1.4 Other Allowances 75.400 1655.51 1655.11 28.1.5 Bonus 75.500 389.57 401.34 28.1.6 Medical Expenses reimbursement 75.611 171.08 203.68 28.1.7 Leave travel assistance 75.612 0.22 - 28.1.8 Earned leave encashment 75.617 1357.60 1078.69 28.1.9 Earned leave encashment to retired 75.618 377.85 439.43 employees 28.1.10 Payment to helpers/employees of 75.630 0.98 25.43 Monsoon gang 28.1.11 Pension & Leave contribution of 75.890 25.41 22.46 employees on deputation Sub-Total 22226.45 19941.77 28.2 Contribution to Provident and Other Funds 28.2.1 Terminal benefits (PF) Corporation 75.810 21.71 16.11 Contribution 28.2.2 Terminal benefits (Pension) Corporation 75.830 3097.01 3523.72 Contribution 28.2.3 Terminal Benefits Company contribution 75.831 609.75 554.46 to Contributory pension scheme with effect from 01.04.06 28.2.4 Terminal Benefits Departmental 75.832 0.45 - contribution under NDCPS -Deputed Employees 28.2.5 Terminal Benefits (Gratuity) 75.840 408.00 545.73 Sub-Total 4136.92 4640.02 28.3 Staff Welfare expenses 75.7, 334.61 342.29 75.845, 75.860, 75.880 TOTAL 26697.98 24924.08

28.4 Employee Benefits: 28.4.1 Short Term Employee Benefits: 28.4.1.1 Short Term Employee Benefits are recognized as an expense in the profit and loss Statement for the year in which related services are rendered. 28.4.2 Post Employment Benefits: 28.4.2.1 The Company makes contribution for Pension and Gratuity to KPTCL/ESCOM’s Pension and Gratuity Trust. The same becomes a Multi-Employer Defined Benefit Plan. Any revision in contribution due to actuarial valuation by the Trust is accounted in the year of intimation by the Trust. For employees who have joined the Company on or after 1.4.2006, the pension plan is Multi-Employer Defined Contribution Plan.

93 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

NOTE : 29 - FINANCIAL COSTS- INTEREST AND OTHER BANK CHARGES (NET) (` in Lakh)

Sl. Account Particulars For the year 2016-17 For the year 2015-16 No Code

29.1 Interest Expenses 29.1.1 Interest on Consumers' Security Deposits 29.1.1.1 Interest on ISD, ASD & MSD 78.600 3567.91 3555.02 29.1.2 Interest on power purchase dues 29.1.2.1 M/s KPCL 80.108 286.50 29.22 29.1.2.2 M/s. UPCL 80.132 - - 29.1.2.3 M/s. Wind Mills 80.140 - - 29.1.3 Interest on Loans 29.1.3.1 Interest on GOK Loans 29.1.3.1.1 Interest on Central Govt. Loan towards 78.101 0.61 4.45 Power Sector Automation 29.1.3.1.2 Interest on PMGY Loan 78.573 8.16 9.10 29.1.3.1.3 Interest on GOK Loan for energization 78.580 - 1.32 of IP sets under GK Scheme Sub- Total 8.77 14.87 29.1.3.2 Interest on REC loans 29.1.3.2.1 Interest on Loan from REC 78.540 14.04 26.45 29.1.3.2.2 Interest on loan drawn by MESCOM 78.591 11.22 13.19 from REC– APDRP works 29.1.3.2.3 Interest on loan drawn by MESCOM 78.592 35.00 38.99 from REC – General 29.1.3.2.4 Interest on loan drawn by MESCOM 78.593 158.91 173.09 from REC – RGGVY Works 29.1.3.2.5 Interest on Bulk loan from Rural 78.597 390.91 427.29 Electrification Corporation Sub- Total 610.08 679.01 29.1.3.3 Interest on PFC loans 29.1.3.3.1 Interest on Loan from Commercial Banks 78.560 8062.70 6792.60 Total Interest on Loans 8681.55 7486.48 29.2 Other Borrowing Costs 29.2.1 Other Interest and Finance Charges 78.800 394.78 120.13 Gross Finance Costs 12930.74 11190.85 29.3 Less : Interest and finance charges capitalised 29.3.1 Capitalisation of interest on funds used 78.900 239.64 130.43 during construction TOTAL 12691.10 11060.42

29.6 NEF (Interest Subsidy) Scheme: Govt. of India vide Office Memorandum No. 24/01/2012-NEF/APDRP dated 14.03.2012, has approved the NEF (Interest Subsidy) Scheme to promote the capital investment in the distribution sector by providing interest subsidy, linked with reform measures, on the loans taken by public and private power utilities for various capital works under Distribution projects. The interest subsidy will be provided by the GOI duly considering the achievements in various parameters. Company has submitted the proposals of interest subsidy to REC which is a nodal Agency for implementing this Scheme, for granting interest Subsidy in respect of two loans obtained from M/s RECL. But Company has not received any subsidy in this regard. Since the amount of interest subsidy can not be ascertained by the Company, no adjustments are made in the accounts.

94 ANNUAL REPORT 2016-17

NOTE : 30 DEPRECIATION AND AMORTIZATION EXPENSES (NET) (` in Lakh) Sl. Account Particulars For the year 2016-17 For the year 2015-16 No Code

30.1 Depreciation on Fixed Assets 30.1.1 Amortisation of Lease hold Assets 77.110 7.29 3.50 30.1.2 Depreciation on Buildings 77.120 162.93 111.01 30.1.3 Depreciation on Hydraulic Works 77.130 13.35 12.83 30.1.4 Depreciation on Civil Works 77.140 2.53 2.20 30.1.5 Depreciation on Plant and Machinery 77.150 2072.02 1773.99 30.1.6 Depreciation on lines, cable, network 77.160 8056.21 7287.08 etc., 30.1.7 Depreciation on Vehicles 77.170 18.13 11.67 30.1.8 Depreciation on furniture, fixtures 77.180 28.26 17.55 30.1.9 Depreciation on Office equipments 77.190 7.60 3.10 Sub-Total 10368.32 9222.93 30.1.10 Depreciation withdrawn on Assets -2872.75 -2634.33 Created out of Govt. grants / Consumers Contributions Total 7495.57 6588.60 30.1.11 Add : Depreciation under provided 83.6 461.36 643.71 in previous years 30.1.12 Less : Excess provision for 65.6 144.82 858.45 Depreciation in prior periods Deprecition on Fixed Assets 7812.11 6373.86 30.2 Depreciation on Released Assets 30.2.1 Plant and Machinery 77.151 28.40 31.23 30.2.2 Lines. Cable, network etc 77.161 4.02 3.05 30.2.3 Office equipments 77.191 - - Sub-Total 32.42 34.28 Depreciation (Net) 7844.53 6408.14

NOTE : 31 OTHER EXPENSES (` in Lakh)

Sl. Account Particulars For the year 2016-17 For the year 2015-16 No Code

31.1 Repairs 31.1.1 Buildings 74.200 116.79 132.32 31.1.2 Plant and Machinery 74.100 1140.55 1328.18 31.1.3 Lines, Cable Net Work Etc. 74.500 2283.05 1782.83 31.1.4 Civil Works 74.300 10.52 14.47 31.1.5 Vehicles 74.600 19.89 25.20 31.1.6 Furniture and Fixtures 74.700 0.17 0.33 31.1.7 Office Equipments. 74.800 17.13 20.35 Sub-Total 3588.10 3303.68 31.2 Power and Fuel 31.2.1 Electricity Charges 76.158 95.82 80.19 31.2.2 Fuel expenses for generators 76.161 1.01 2.09 Sub- Total 96.83 82.28 31.3 Rent 31.3.1 Rent (including lease rentals) 76.101 215.87 220.84 Sub- Total 215.87 220.84 31.4 Rates and Taxes excluding Taxes on 76.102 8.72 7.49 Income 31.5 Miscellaneous Expenses 31.5.1 Payment to Auditors

95 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

(` in Lakh)

Sl. Account Particulars For the year 2016-17 For the year 2015-16 No Code

31.5.1.1 Payment to statutory Auditors 31.5.1.1.1 As Auditor 76.122 2.20 2.20 31.5.1.1.2 Taxation Matter 76.122 0.55 0.55 31.5.1.1.3 Reimbursement of Expenses 76.125 - - 31.5.1.2 Payment to Cost Auditors 31.5.1.2.1 As Auditor 76.122 0.75 0.75 31.5.1.2.2 Taxation Matter - - 31.5.1.2.3 Reimbursement of Expenses - - Total Payment to Auditors 3.50 3.50 31.6 Other A&G Expenses 31.6.1 Service Tax payment to service provider 76.107 391.74 247.85 on Revenue expenditure bills 31.6.2 Service Tax payment to central excise 76.108 358.02 347.78 customs & service Tax Department on Revenue expenditure bills 31.6.3 Service Tax – Payment to Service 76.109 122.26 21.39 provider on Capital Expenditure bills 31.6.4 Service Tax – Payment to Central Excise, 76.110 68.53 22.77 Customs and Service Tax Department on Capital expenditure bills 31.6.5 Pagers cellular phones E-mail & other 76.111 17.34 21.55 communication charges 31.6.6 Telephone, Trunk call, Telegrams and 76.112 93.32 78.61 Telex Charges 31.6.7 Mobile Phone Charges 76.114 50.99 47.72 31.6.8 Postage 76.113 18.89 23.55 31.6.9 Legal Charges 76.121 33.82 32.62 31.6.10 Consultancy charges 76.123 21.81 8.29 31.6.11 Other Professional charges 76.125 214.02 4.78 31.6.12 Remuneration to Contract Agencies for 76.126 340.67 349.57 opening & maintenece of ledger Accounts 31.6.13 Remuneration to Private Contractor 76.127 208.07 206.80 engaged for shift and minor maintenance duties of stations/MUSS 31.6.14 Remuneration paid to Chartered 76.128 5.16 5.77 Accountants for auditing cash & Revenue Accounts 31.6.15 Remuneration paid to Contract 76.129 2479.88 3346.10 Agencies/ Services obtained 31.6.16 Remuneration paid to Grama Vidhyuth 76.130 187.08 69.55 Prathinidhis 31.6.17 Conveyance expenses 76.131 0.33 0.40 31.6.18 Travelling expenses 76.132 1.64 8.66 31.6.19 Travelling allowance to employees 76.133 513.22 319.00 31.6.20 Travelling Allowance to Contract 76.134 - 1.41 Employees 31.6.21 Vehicle hiring expenses for vehicles 76.135 280.62 258.72 hired to stations 31.6.22 Vehicle running expenses other than 76.136 129.28 106.69 store vehicles 31.6.23 Vehicle hiring expenses 76.137 448.12 383.22 31.6.24 Vehicle License, Registration fee 76.138 11.02 10.40 and Taxes 31.6.25 Travelling and other expenses of 76.139 2.35 - Non-functional Directors of Company 31.6.26 Shared expenses of MESCOM with 76.140 16.66 9.18 KPTCL

96 ANNUAL REPORT 2016-17

(` in Lakh) Sl. Account Particulars For the year 2016-17 For the year 2015-16 No Code

31.6.27 Shared expenses of MESCOM with PCKL 76.141 81.92 86.63 31.6.28 Band width / data charges for 76.142 17.05 - R-APDRP project 31.6.29 Fees & Subscriptions 76.151 72.19 77.73 31.6.30 Books, periodicals and diaries 76.152 6.51 2.09 31.6.31 Printing & Stationery 76.153 114.15 139.20 31.6.32 Factory License Fees 76.154 10.00 10.00 31.6.33 Advertisement Expenses 76.155 59.23 33.36 31.6.34 Computer stationery and floppies 76.156 8.67 8.73 31.6.35 Contributions 76.157 - 5.09 31.6.36 Statutory payments as per Company 76.159 49.34 2.18 Act, 1956 31.6.37 Water Charges 76.160 3.07 4.21 31.6.38 Remuneration to Centre for 76.171 0.07 - e-governance for revenue collection through Mobile Application 31.6.39 Miscellaneous expenses 76.190 200.64 166.67 31.6.40 Compliment Expenses 76.191 3.60 2.70 31.6.41 Material related expenses 76.200 52.15 50.48 Sub- Total 6693.43 6521.45 31.6.42 Expenses relating to CSR Activities 31.6.42.1 Consumer Relation/ Education 76.196 24.64 10.98 31.6.42.2 CSR related expenses 76.197 6.00 7.25 Sub- Total 30.64 18.23 Total A&G Expenses 7048.99 6853.79 31.6.43 Administration & General Expenses 76.900 - -57.26 charged to capital works (credit Account) 31.6.44 Administration & General Expenses 76.901 -190.79 -44.16 charged to capital works (credit Account) - Service Tax Net A&G Expenses 6858.20 6752.37 31.7 Other Debits 31.7.1 Asset Decommissioning Costs 77.500 3.21 12.95 31.7.2 Small & Low value items Written off 77.610 10.56 7.97 31.7.3 Losses relating to Fixed Assets 77.700 86.85 189.32 31.7.4 Interest paid to Income Tax dept. 78.510 - 6.80 31.7.5 Research and development expenses 79.210 - 0.86 31.7.6 Bad & Doubtful Debts Written off / 79.400 145.30 121.92 provided for 31.7.7 Miscellaneous losses and Write offs 79.500 1773.59 128.81 Sub Total 2019.51 468.63 31.8 Prior Period Expenses / losses : 31.8.1 Operating Expenses of previous years 83.300 0.02 0.95 31.8.2 Employee costs relating to previous 83.500 37.07 4.22 years 31.8.3 Interest and other Finance charges 83.700 0.39 11.24 relating to previous years 31.8.4 Short Provision for Income tax - 83.810 - - previous years 31.8.5 Administrative Expenses - previous 83.820 1.97 0.25 years 31.8.6 Other Expenses relating to prior periods 83.850 178.83 35.30 31.8.7 Prior Period Expenses relating to 83.860 26703.39 1.09 purchase of power Sub-Total 26921.67 53.05 TOTAL 39387.48 10577.73

97 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

NOTE : 32 EXCEPTIONAL ITEMS (` in Lakh)

Sl. Account Particulars For the year 2016-17 For the year 2015-16 No Code

32.1 Income on account of MAT credit 65.500 - 270.45 Entitlement - Previous year TOTAL - 270.45

NOTE : 33 MAT CREDIT ENTITLEMENT (` in Lakh)

Sl. Account Particulars For the year 2016-17 For the year 2015-16 No Code

33.1 Income on account of MAT credit 62.922 307.01 231.22 Entitlement - Current Year Total 307.01 231.22

34 Disclosures required by Accounting Standards: 34.1 Segment Reporting: 34.1.1 Business Segment: 34.1.1.1 Electricity distribution is the principal business activity of the Company. There are no other activities which form a reportable segment as per the Accounting Standard – 17 ‘Segment Reporting’. 34.1.2 Secondary Segment: 34.1.2.1 The operations of the Company are mainly carried out within the four districts of Karnataka State namely, Dakshina Kannada, Udupi, Chikkamagaluru and Shivamogga. Therefore geographical segments are not applicable. 34.2 Disclosure of transactions with Related Parties as required by the Accounting Standard – 18 34.2.1 In view of paragraph 9 of AS 18, 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 are as given below: 34.2.2 Managerial Remuneration paid / payable for the financial year 2016-17 to the Directors are as follows:

(` in Lakh) Particulars Current Year 2016-17 Previous Year 2015-16 Salary and Allowances 31.29 28.65 Ex-gratia 0.14 0.18 Medical Expenses 1.37 4.59 Travelling Expenses 0.80 1.94 PART TIME DIRECTORS: Travelling Expenses 1.05 - Sitting Fees 0.69 0.49 TOTAL 35.35 35.85

34.3 Earnings Per Share

Particulars 2016-17 2015-16 Profit after tax as per Accounts (For Basic and 1293.68 1111.39 Diluted Earnings Per Share) – (A) (` in Lakhs) Weighted Average number of shares outstanding 361839135 233478861 during the year for Basic and Diluted EPS – (B) Basic and Diluted Earnings per Share(A/B) (in `) 0.36 0.48

98 ANNUAL REPORT 2016-17

34.4 Taxation: 34.4.1 Current Taxation: 34.4.1.1 The provision for Minimum Alternate Tax (MAT) under Section 115 JB of Income Tax Act 1961 has been created in the Accounts. 34.4.2 Deferred Taxation: 34.4.2.1 The Company has not recognized Deferred Tax Asset / Deferred Tax Liabilities as required by Accounting Standard-22. 34.5 Estimated amount of capital works remaining to be executed as on 31.03.2017 in respect of Projects amounts to ` 8825.01 Lakh. 34.6 The details of amount outstanding to Small and Medium Enterprises based on available information with the Company is as under:

(` in Lakh)

Particulars As at 31st March 2017 As at 31st March 2016 Principal amount due and remaining unpaid - - Interest due on above and the unpaid interest - - Interest paid - - Payment made beyond the appointed day during the year - - Interest due and payable for the period of the delay - - Interest accrued and remaining unpaid - - Amount of further interest remaining due and - - payable in succeeding Years

35 Others: 35.1 The details of energy purchase, sale of energy and distribution losses during the year 2016-17 are as follows:

Particulars Units For the year 2016-17 For the year 2015-16 Energy purchased at Generation point Mus 5435.70 4991.57 Energy Balancing Adjustments Mus 233.14 36.15 Net energy Mus 5668.84 5027.72 Energy at interface point Mus 5411.61 4869.13 Energy Sales Mus 4794.42 4309.17 Distribution Loss Mus 617.19 559.96 Percentage of Distribution Loss % 11.40 11.50

Reconciliation of Energy Sales

Particulars Units For the year 2016-17 For the year 2015-16 Energy sales as per DCB Mus 4707.31 4204.69 Add : Sales of April 2017 Mus - 467.27 Less : Sales of April 2016 Mus - 431.42 Add : Wheeled energy Mus 81.21 59.04 Add : KPCL Colony consumption Mus 5.90 9.59 Total Sales considered for Energy Audit Mus 4794.42 4309.17

35.2 Considering the financial implications involved, insurance on fixed assets or current assets has not been made as it is not economical. 35.3 The title deeds of properties transferred from KPTCL are completely transferred in the name of Company. 36 Contingent Liabilities: 36.1 The Company was subjected to EPF Inspection during the year 2006-07 and thereby a demand of ` 4.44 Crores was raised on the Company towards the dues for EPF of Contract Employees. The Company has disputed the same in view of the error in calculation of demand and also with regard to applicability of the regulations to contractors’ employees. A deposit of ` 1.77 Crores has already been made with the EPF department and the case has been remanded to PF Office Mangaluru for hearing once again in the year 2011-12. Details along with the contention of the Company are submitted to APFC Mangaluru on 10.03.2014. The Company is hopeful of a positive outcome on the said issue. No provision has been made in the accounts for the disputed demand.

99 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

36.2 The Regional Provident Commissioners have issued Notices to various Acounting Units of the Company for payment of interest and damages for the belated remittances under Section 7Q and 14B of the Employees' Provident Fund and Miscellaneous Provision Act, 1952. Company has deposited the said amounts with PF authorities under protest and filed appeals before the Employees' Provident fund Apellate Tribunal at New Delhi. No provision is made in the Accounts for the expenditure. MESCOM may be contingently liable for this amount if the cases are not decided in favour of MESCOM. The details are as follows:

Demand raised Name of the Accounting Unit Paid Appeal No. & Date Interest Damages Total

1. O & M Division Mangaluru 8325618 10695493 19021111 19021111 ATA No. 1275(6)/2014 2. O & M Division Puttur 6436970 8343738 14780708 14780708 ATA No. 630(6)/2013 3. O & M Division Shivamogga 757961 383386 1141347 1141347 ATA No. 114(6)/2014 4. O & M Division Sagar 3828351 3377361 7205712 6361372 ATA No. 1084(6)/2015 5. O & M Division Chikkmagaluru 6540760 7499653 14040413 14040413 ATA No. 742(6)/2014 6. O & M Division Kadur 599890 1105063 1704953 1704953 ATA No. 743(6)/2014 Total 26489550 31404694 57894244 57049904

36.3 The appeal No. ITA/1118/Bang/09 AY 2006-07 preferred by MESCOM against the order CIT(A) Mangalore in respect of disallowance of 80 IA claim of MESCOM relating to AY 2006-07 is disposed by the Hon'ble ITAT Bangalore on 31.10.2012 stating that the appeal of the Company is partly allowed for statistical purpose. As the major claim of disallowance of 80IA was not considered by the ITAT, an appeal has been preferred before the Hon'ble High Court of Karnataka at Bangalore. The case is not yet come for hearing as on date. The entire demand pertaining to the Assessment Year 2006-07 has been paid and treated as deposit in view of the pending appeal for disposal before the Hon'ble High Court of Karnataka.

36.4 The Commissioner of Central Excise and Service tax, Mangaluru has passed two orders bearing No. C.No. IV/09/114/2010 Hqrs. Adjn 1/2295 on 28.01.2011 and order No. IV/09/114/2010/Hqrs Adj(1)/17109 dated 26.10.2010 for ` 6,37,250/- and for ` 85,53,406/- which includes service tax of ` 3,18,625/- and `42,76,703/- respectively and penalty of ` 3,18,625/- u/s. 76 and penalty of ` 42,76,703/- u/s. 78 respectively excluding penalty u/s. 77 and rule 7(c). Further interest amount u/s. 75 has not been quantified. These orders have been passed in respect of service tax on Goods transport Agency Service since 2005 being not paid to the Department. The Company has got stay against the demand raised by the department from CESTAT Bangalore. The case is not come up for hearing so far.

36.5 The table given below indicates the number of pending cases before various authorities and courts as on 31.03.2017 and corresponding amount involved in it.

Particulars No. of pending cases Amount involved in lakh Rupees. Revenue 25 135.68 Labour 72 268.25 Miscellaneous 213 218.79 Total 310 622.72

There may be contingent liability for the said amount if the cases are not decided in favour of MESCOM

100 ANNUAL REPORT 2016-17

36.6 Letter of Credits issued:

As per the conditions of Power purchase Agreements entered with various Power generators, company has provided LC to the Generators as a payment security and availing rebate as per the rebate clause. Status of LC provided as on 31.03.2017 is furnished as below: ` in crs Balance of LC limit available Comprehensive Amount of Sl.No. Name of the Bank out of Comprehensive LC LC Limit LC availed as on 31.03.2017 1 State Bank of Mysore 25.00 16.91 8.09 2 Corporation Bank 7.50 4.61 2.89 3 Vijaya Bank 167.50 82.31 85.19 Total 200.00 103.83 96.17

36.7 Power Purchase related Contingent Liabilities

Sl. No Particulars Amount of Liability Ref. to Note No. (in ` Lakhs) 1 Mysore Paper Mills Not ascertained 27.22 2 M/s J.K. Cements 5.69 27.10 3 M/s Himathsingka Seide Ltd. 18.76 27.10 4 M/s TATA Power Ltd 300.00 27.11 5 M/s UPCL 4200.00 27.12 6 M/s KPCL Not ascertained 27.13 7 M/s NTPC Simhadri STPS Not ascertained 27.16 8 M/s KPTCL (Transmission Charges) 1974.00 27.20 Total 6498.45

37 The Balances in respect of Sundry Debtors, Sundry Creditors, Loans, Advances to Supplies and other borrowings are subject to confirmation and other reconciliation if any. 38 The previous figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation 39 Details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December, 2016 is provided in the Table below:-

Other Particulars SBNs Denomination Total notes Closing cash in hand as on 08.11.2016 51.26 7.28 58.54 (+) Permitted receipts - Receipts against dues on 4709.74 5120.85 9830.59 Electricity consumption being utility bill in nature. (-) Permitted payments - - - (-) Amount deposited in Banks 4761.00 5065.46 9826.45 Closing cash in hand as on 30.12.2016 - 62.68 62.68

40. The companies Accounts that are approved by the Board on 10.08.2017 have been revised in the light of observations made by the Comptroller and Auditor General of India. The said revision has resulted in decrease in net profits by ` 12.77 lakhs ; decrease in the reserves and surplus by ` 12.77 lakhs ; increase in Other long term liabilities by ` 1639.77 lakhs ; increase in Trade payables by ` 21.27 lakhs ; increase in Other Current liabilities by ` 69.12 lakhs ; increase in Tangible Assets by ` 53.87 lakhs ; decrease in Capital work in progress by ` 12.77 Lakhs. ; increase in Inventories by ` 4.35 lakhs ; decrease in Other non current assets by ` 25211.11 Lakhs ; increase in Other current assets by ` 26883.05 lakhs. As a result, the total assets and liabilities have increased by ` 1717.39 lakhs.

Sd/- Sd/- Sd/- (D.R. SRINIVAS) (M.D. RAVI) (K. RAMAKRISHAN) Chief Financial Officer Director (MESCOM) Managing Director In terms of our Report of even date for GOPALAIYER & SUBRMANIAN Chartered Accountants Firm Reg. No: 000960 S

Sd/- Place : Mangaluru CA K.R. SURESH Date: 18/09/2017 PARTNER Membership No. 25453 101 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED Statement showing sector wise capital expenditure with and without

released assets issued to capital works for 2016-17 (` in Lakhs) Released Sl. Account Budget Cost during Net Capital Particulars Assets issued No Code Allocation the year to capital works Expenditure 1 System Augmentation & Strengthening a DTC Metering 14.152 1941.93 0.20 1941.73 b Replacement of Electro- Mechanical 14.153 211.96 1.21 210.75 Meters by Static Meters c Auto-recloser & Sectionliser 14.156 27.14 - 27.14 d RLMS Works 14.157 - - - e Link lines, Re-conductering of HT,LT 14.167 18000.00 2908.82 0.67 2908.15 & 33 KV lines f Installation of Additional Transformers 14.168 2430.75 7.73 2423.02 g Universal Metering 14.351 - - - 14.36114.401 h Improvement- Others 14.15014.160 917.18 6.35 910.83 I Tackling of High Loss High 14.169 24.77 1.67 23.10 consumption Feeders & HVDS Sub-Total 18000.00 8462.55 17.83 8444.72 1 R- APDRP Works 14.144 15780.00 1673.82 1.16 1672.66 2 Replacement of faulty distribution 14.170 3332.74 2623.51 709.23 transformers by similar capacities 3500.00 Replacement of faulty distribution 14.171 415.29 84.66 330.63 transformers by higher capacities 3 Service Connection including promotor vanished layout works a Service Connection 14.400 1664.95 9.02 1655.93 b Energisation of Rural Water Supply 14.404 4000.00 1432.85 4.88 1427.97 Works under RD & PR. c Promotor vanished layout works 14.142 42.42 0.04 42.38 Sub Total 4000.00 3140.22 13.94 3126.28 4 Rural Electrication (General) a RGGVY 14.210 70.00 2.07 - 2.07 b Deen Dayal Upadyaya Gram Jyothi 39600.00 - - - Yojana (DDUGJY) c Electrification of Hamlets / Janatha 14.302,14.300, 200.00 98.43 - 98.43 Colonies 14.200,14.303 d Energisation of IP sets 14.320, 14.326, 802.10 10.74 791.36 14.220,14.325 20000.00 e Regularization of un-authorised I.P sets 14.324 112.59 3.04 109.55 f Power supply to IP sets (Existing 14.327 - -0.25 - -0.25 under OYT) g Providing Infrastructure to Un-Authorised 14.335 - 6310.20 - 6310.20 IP sets on Total Turnkey basis h Kutir Jyothi 14.350, 14.360 25.00 0.67 0.11 0.56 I Sheeghra Samparka Yojane 14.330 - 438.09 14.35 423.74 j Naksal Package 14.371 - - - - Sub Total 59895.00 7763.90 28.24 7735.66 5 Tribal Sub-Plan a Electrification of Tribal Colonies 14.340, 14.341 100.00 150.03 - 150.03 Janatha Colonies b Energisation of IP sets 14.328 150.00 29.83 0.02 29.81 c Kutir Jyothi 14.362 5.00 0.86 0.40 0.46 Sub Total 255.00 180.72 0.42 180.30 6 Special Component Plan a Electrification of S.C. Colonies / 14.342 110.00 36.73 - 36.73 Janatha Colonies b Energisation of IP sets 14.329 150.00 78.45 0.04 78.41 c Kutir Jyothi 14.363 10.00 0.51 -0.01 0.52 Sub Total 270.00 115.69 0.03 115.66

102 ANNUAL REPORT 2016-17

(` in Lakh) Released Sl. Account Cost during Net Capital Particulars Budget Assets issued No Code Allocation the year to capital works Expenditure 7 Tools & Plants & Computers 14.600 2000.00 348.12 - 348.12 14.70014.800 8 Civil Engineering Works 14.502 1800.00 2520.16 - 2520.16 9 Construction of new sub stations & 14.110 4500.00 1814.60 20.36 1794.24 lines (33KV) 14.120 14.126

10 Niranthara Jyothi Yojane 14.381 - - - - 11 Energisation of IP sets under Ganga Kalyana IP sets of SC 14.331 797.31 15.74 781.57 IP sets of ST 14.332 226.39 1.81 224.58 IP sets of BCM 14.333 641.65 5.62 636.03 IP sets of Minorities 14.334 220.74 2.52 218.22 GRAND TOTAL 110000.00 31653.90 2815.84 28838.06

STATEMENT SHOWING CAPITAL WORKS IN PROGRESS FOR THE YEAR 2016-17 (` in Lakh) Account O.B. As on C.B. As on Description Incurred Categorised Code 01.04.2016 31.03.2017

14.110 CWIP - Transmission lines (G.P) 200.64 5.38 199.26 6.76 14.120 CWIP - Step Down Stations (GP) 1552.20 1812.28 350.85 3013.63 14.126 CWIP - Step Down Stations - non plan - 0.64 0.64 - 14.142 CWIP - Promoter vanished layouts - 11KV lines, 40.72 42.42 63.65 19.49 Transformers, LT lines/ S.C etc., (G.P) 14.144 CWIP - 11KV & below Distribution works under 747.09 1654.05 196.62 2204.52 RAPDRP works 14.150 CWIP - Transmission lines - Transformers etc., 429.94 791.79 771.02 450.71 Improvements (GP) 14.152 CWIP-Improvements - DTC Metering 122.30 1941.93 1720.60 343.63 14.153 CWIP-Improvements - replacement of electro 199.28 211.96 197.85 213.39 mechanical meters by static meters 14.156 CWIP- improvements - Auto - reclosures & 0.69 27.14 27.14 0.69 sectionalizers 14.160 CWIP - Reduction of Losses in lines 70.23 136.06 162.21 44.08 14.167 CWIP- improvements - linklines & reconductering 1370.97 2950.00 2624.80 1696.17 of HT, LT& 33kv line 14.168 CWIP- installation of additional transformers 1696.36 2446.78 2314.02 1829.12 14.169 CWIP- tracking of high loss high consumption 127.36 24.77 54.25 97.88 feeders & HVDS 14.170 CWIP - Replacement of distribution Transformers 417.59 3332.74 3534.30 216.03 by similar capacities 14.171 CWIP - Replacement of Transformers by higher 61.98 415.29 420.36 56.91 capacities 14.210 CWIP - RGGVY - 2.07 2.07 - 14.300 CWIP - Village Electrofication (G.P) - 0.49 0.49 - 14.302 CWIP - Electrification of Hamles and Tandas (G.P) 27.18 98.63 48.38 77.43 14.320 CWIP - Power Supply to IP sets (G.P) 280.35 806.39 724.08 362.66 14.324 CWIP – Regularization of un-authorised I.P sets 415.17 112.59 355.72 172.04 registered on or before 31.07.11. 14.327 CWIP - Power Supply to IP sets (Exisitng) under O.Y.T) 0.25 -0.25 - - 14.328 CWIP - Energization of IP sets under Tribal Sub-Plan 17.85 30.16 23.62 24.39 14.329 CWIP - Energization of IP sets under Special 34.12 78.58 58.99 53.71 Component Plan 14.330 CWIP - Sheeghra Samparka Yojane 40.48 438.09 278.24 200.33

103 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

(` in Lakh) Account O.B. As on Description Incurred Categorised C.B. As on Code 01.04.2016 31.03.2017

14.331 CWIP - Energisation of Borewells drilled under 206.47 797.31 564.83 438.95 Gangakalyana Scheme by Dr. B.R.Ambedkar Devpt. Corporation Ltd. 14.332 CWIP - Energisation of Bore wells drilled under 43.38 226.68 133.58 136.48 Gangakalyana Scheme by Karnataka Scheduled Tribe Devpt. Corporation Ltd. 14.333 CWIP - Energisation of Bore wells drilled under 171.66 642.52 495.66 318.52 Gangakalyana Scheme by D. Devaraj Urs Backward Class Devpt. Corporation Ltd 14.334 CWIP - Energisation of Bore wells drilled under 124.69 223.06 244.10 103.65 Gangakalyana Scheme by Karnataka Minorities Devpt. Corporation Ltd 14.335 CWIP- Providing infrastructure to Un-authorised 300.75 6310.20 6610.95 - IP Sets on Total Turnkey basis. 14.341 CWIP electrification of tribal colonies under Tribal 5.08 150.03 24.86 130.25 sub-plan 14.342 CWIP electrification of SC colonies under Special 9.14 36.73 28.02 17.85 Component plan 14.360 CWIP - Kuteera Jyothi Schemes - 0.67 0.67 - 14.362 CWIP - Metering of existing K.J Installation under 0.07 0.86 0.09 0.84 TSP 14.363 CWIP - Metering of existing K.J Installation under 1.29 0.51 0.23 1.57 SCP 14.400 CWIP - Service Connections 851.07 1693.35 1687.66 856.76 14.401 CWIP - Metering of I.P sets pf 10 HP and below 3.12 - 1.72 1.40 14.404 CWIP-Energisation of Rural Water Supply Works 404.10 1462.07 1416.68 449.49 under RD & PR. 14.502 CWIP - Buildings 1485.39 2515.40 3244.51 756.28 14.607 CWIP - Vehicles 14.88 18.06 32.31 0.63 14.708 CWIP - Furniture and Fixtures 2.08 12.11 12.58 1.61 14.809 CWIP - Office equipment 16.69 160.92 138.08 39.53 14.810 CWIP - Tools and Tackles 36.22 154.87 70.88 120.21 14.811 CWIP - Mobile Phones 0.12 2.16 2.21 0.07 14.911 CWIP - Provision for ongoing works 168.03 -113.59 - 54.44 TOTAL 11696.98 31653.90 28838.78 14512.10

Statement of Material Stock Account (` in Lakhs) Amount SI. Particulars No. As on 31.03.2017 As on 31.03.2016 A Opening Stock 5642.46 5603.11 B R E C E I P T S 1 Material Purchases 16576.29 15848.52 2 Material inward - Others 1459.70 3225.78 TOTAL RECEIPTS 18035.99 19074.30 C OPENING STOCK + RECEIPTS 23678.45 24677.41 D I S S U E S 1 Material issued capital 16921.79 14707.06 2 Material issues (O&M) 1633.88 1365.30 3 Material Outward - Others 1366.54 2962.59 TOTAL ISSUES 19922.21 19034.95 E CLOSING BALANCE OF STOCK (C-D) 3756.24 5642.46

104 ANNUAL REPORT 2016-17

Statement showing the details of source-wise power purchase cost (` in Crs) Sl. 2016-17 2015-16 Particulars No Energy (Mus) Cost Energy (Mus) Cost

1 Hydel Power 411.27 41.83 541.09 116.86 2 Thermal Power A KPC 1548.28 670.84 1734.68 719.94 B NTPC 702.78 218.92 480.79 147.69 C NTECL 85.89 37.49 56.02 21.09 D NTPC VVNL 49.22 23.73 53.83 23.91 E Damodhara Valley Corporation 267.47 119.16 43.99 19.74 3 Lignite Power - NLC 421.54 181.90 303.25 102.44 4 Atomic Power A MAPS 18.21 3.95 17.78 3.73 B KAIGA 152.15 48.00 175.69 54.88 C Kundankulam 145.83 48.35 34.14 14.22 5 Conventional Energy 594.03 266.59 381.47 159.83 6 Jurala Hydro Power 9.55 4.73 0.75 4.79 7 Non Conventional Energy A Mine Hydel 227.80 78.33 252.70 86.22 B Bio-Mass - - - - C Captive Generation - - 2.44 0.63 D Solar 74.91 55.97 32.11 26.45 E Wind Mill energy 284.20 101.88 269.43 96.15 8 UI Charges 45.39 12.59 44.43 13.44 9 High Cost Energy A Medium term & Short term power 385.95 168.19 564.70 287.42 B Peak power - - - - 10 Transmission charges A KPTCL - 248.38 - 218.70 B PGCIL - 111.71 - 71.81 C TNEB - 0.05 - 0.03 11 Other Charges (Trading margin charges, open access 11.23 7.95 2.28 8.13 charges, SLDC charges, PCKL charges energy to be accounted as per reconciliation) Sub Total 5435.70 2450.54 4991.57 2198.10 12 Energy Balancing Adjustments A Relating to present year 233.14 89.22 36.15 14.87 Sub Total 5668.84 2539.76 5027.72 2212.97 B Relating to previous years - - - 17.43 C Difference amount due to change in Average Rate - - - - taken for Energy Balancing (2008-09 & 2009-10) Total 5668.84 2539.76 5027.72 2230.40

COST OF POWER AT DIFFERENT POINTS (` in Crs)

2016-17 2015-16 Sl. Particulars No Energy Rate per Energy Rate per Amount Amount (MU) unit (in `) (MU) unit (in `)

1 P.P Cost at Generation Point 5668.84 2539.76 4.48 5027.72 2230.40 4.44 2 P.P Cost at Interface Point 5411.61 2539.76 4.69 4869.13 2230.40 4.58 3 P.P Cost at Consumer Point 4794.42 2539.76 5.30 4309.17 2230.40 5.18 4 Delivered cost of power to consumer 4794.42 3407.92 7.11 4309.17 2760.27 6.41 (Excluding ROE)

105 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Collection Efficiency as per DCB

Collection Efficiency (in %) Collection Efficiency: FY-16 Vs. FY-17 Category 2015-16 2016-17

LT 1 88.91 87.20 140 LT 2 100.02 98.09 120 100 LT 3 99.98 98.05 % e g 80 2015-16 ta LT 4 100.71 98.77 n 60 2016-17 e rc 40 LT 5 99.13 97.22 e Percentage P 20

LT 6 133.25 130.68 0 LT 7 108.13 106.05 HT 100.99 99.05 Misc. 100.00 98.07 Category Total 101.97 99.20

Sales

Sales -Mus Custom er B ase: FY-16 Vs. FY-17

Category 2015 -16 2016 -17 1800

sales % sales % 1600 LT 1 41.61 0.99 40.97 0.99 1400 1200 LT 2 1264.68 30.08 1306.06 30.08 1000 S E s L U LT 3 327.07 7.78 342.34 7.78 A M 800 S MUs SALES LT 4 1177.56 28.01 1637.62 28.01 600 400 LT 5 134.78 3.21 136.73 3.21 200

LT 6 173.50 4.13 189.91 4.13 0

LT 7 19.63 0.47 19.40 0.47

2015-16 HT 1065.86 25.35 1034.29 25.35 Category 2016-17 Total 4204.69 100.00 4707.31 100.00

Customer Profile

Customer Base Customer Base: FY-16 Vs. FY-17 Category 2015 -16 2016 - 17 1600000 Installations Installations in nos. % in nos. % 1400000

1200000 LT 1 195633 9.09% 193372 8.71% s n o ti 1000000 a LT 2 1409185 65.47% 1455795 65.58% l ta s 800000 In f LT 3 190104 8.83% 197670 8.90% o . 600000 o LT 4 281645 13.08% 295047 13.29% N 400000 No. of Installations LT 5 27859 1.29% 28793 1.30% 200000

LT 6 29893 1.39% 33356 1.50% 0

LT 7 16506 0.77% 14153 0.64%

HT 1720 0.08% 1854 0.08% 2015-16 Category Total 2152545 100.00 2220040 100.00 2016-17

106 ANNUAL REPORT 2016-17

Revenu Demand Revenue Demand as per DCB Revenue Demand: FY-16 Vs. FY-17 2015-16 2016-17 Category 90000 ` in ` in % % Lakhs Lakhs 80000 70000 LT 1 2018.32 0.82% 2213.16 0.76% s 60000 h k LT 2 60675.32 24.78% 69065.02 23.74% a L 50000 in s LT 3 28087.26 11.47% 30886.22 10.62% e e 40000 p u LT 4 50588.64 20.66% 77599.70 26.67% R30000

LT 5 9316.44 3.80% 9903.69 3.40% Rupees in Lakhs 20000 10000 LT 6 11274.63 4.60% 13448.40 4.62% 0 LT 7 2597.48 1.06% 2826.62 0.97%

HT 79802.43 32.59% 84361.59 29.00%

Misc. 510.08 0.21% 606.16 0.21% 2015-16 2016-17 Category Total 244870.60 100.00 290910.57 100.00

Revenue Collection Revenue Collection as per DCB Revenue Collection: FY-16 Vs. FY-17 2015-16 2016 - 17 Category 90000 ` in ` in % % Lakhs Lakhs 80000 LT 1 1794.52 0.72% 2157.45 0.75% 70000 s h 60000 k LT 2 60685.62 24.30% 69574.88 24.11% a L 50000 in s LT 3 28081.48 11.25% 30918.22 10.71% e e 40000 p u LT 4 50950.34 20.41% 77877.48 26.99% R 30000

LT 5 9235.12 3.70% 10006.11 3.47% 20000 Rupees in Lakhs LT 6 15023.88 6.02% 12295.32 4.26% 10000 LT 7 2808.70 1.12% 2882.67 1.00% 0 HT 80596.06 32.28% 82271.26 28.51% Misc. 510.08 0.20% 606.16 0.21% 2015-16 2016-17 Category Total 249685.81 100.00 288589.54 100.00

Closing Balance

Closing Balance as per DCB Closing Balance: FY-16 Vs. FY-17 2015-16 2016-17 Category 30000 ` in ` in % % Lakhs Lakhs 25000 LT 1 1082.49 1.96 1138.20 1.98 20000 LT 2 3668.52 6.65 3158.64 5.49 s h k a 15000 LT 3 910.64 1.65 878.67 1.53 L in s e LT 4 14673.97 26.60 14396.19 25.04 e p10000 u LT 5 482.58 0.87 380.17 0.66 R Rupees in Lakhs LT 6 24822.92 45.00 25975.97 45.18 5000

LT 7 -1367.36 -2.48 -1423.40 -2.48 0 HT 10894.32 19.75 12984.68 22.59 -5000 Misc. - - - - 2015-16 2016-17 Category Total 55168.08 100.00 57489.11 100.00

107 Average Realization Rate From Sale of Power 2016-17 (` in Lakh)

Account Code Units Sold Average Opening Revenue No Provision FFC Revenue CorporateCollection Account Head - No. of Realizationbalance Demand provision for Demand office for the Closing Tariff Demand LT Category Demand Closing Consumers Units % of Rate per as on as per for unbilled withdrawal as per as per Adjust- year Balance Balance Unit (Ps.) of revenue Series Series (MU) Units Sold 01.04.2016 DCB revenue Accounts Accounts ments 16-17 BJ / KJ - Tariff subsidy LT - 1 61.402 28.626 143049 13.932 0.29% 737.16 1027.01 1027.01 - 1027.01 - BJ / KJ LT - 1 61.101 23.101 50323 27.033 0.56% 379.08 1288.87 1039.88 -1.01 - 14.11 1024.76 -121.10 1942.29 1553.55 Lighting & AEH LT - 61.110, 23.110, 1455795 1306.06 27.24% 496.23 5619.50 65215.35 55.40 -0.02 460.07 64810.69 -108.58 65884.00 5114.84 2a&b 61.111 23.111 Commercial Lighting LT - 3 61.115 23.115 197670 342.344 7.14% 846.63 1868.86 29088.63 16.25 - 121.17 28983.72 -120.62 29215.07 1879.29 Irrigation pumpsets, (upto & LT - 4a 61.119 23.119, 291129 1628.060 33.96% 476.38 12443.08 77039.23 1213.15 - 694.77 77557.62 -66.27 77411.82 13349.90 inclusive of 10 HP) LT - 4a 61.401 23.119 Irrigation pumpsets (above LT - 4b 61.120 23.120 245 1.207 0.03% 523.35 97.03 62.41 1.35 - 0.59 63.17 -3.98 50.62 114.15 MANGALORE ELECTRICITY 108 10 HP) Private Horticultural Nurseries, LT - 4c 61.121 23.121 3673 8.354 0.17% 485.11 777.05 397.19 12.05 - 3.98 405.26 -10.46 287.50 909.25 Coffee, Tea, Coconut & Arecanut Plantations Industrial, Non-Industrial LT - 5a 61.129, 23.129, 28793 136.731 2.85% 681.51 885.85 9393.44 -25.98 0.08 49.03 9318.34 2.92 9532.43 723.72 Heating & Motive Power to d 61.130, 23.130, including lighting 61.131, 23.131, 61.133 23.133 Water Supply -Sewerage LT - 6a 61.125 23.125 13680 120.528 2.51% 460.61 13278.54 5594.52 0.93 - 43.83 5551.62 11563.19 4388.88 2921.92 pumping - VP/TP & others

Public lighting - VP/TP & LT - 6b 61.140 23.140 19676 69.378 1.45% 703.09 3108.45 4882.69 20.64 - 25.43 4877.89 1681.83 4584.68 1745.27 SUPPL others Temporary Power Supply LT - 7 61.145 23.145 14153 19.401 0.40% 1399.41 118.05 2707.65 14.32 - 6.97 2715.00 -80.78 2839.54 81.27 Y KPC 5.890 0.12% COMP TOTAL OF LT 2218186 3678.919 76.73% 533.68 39485.28 196447.99 1307.12 0.07 1419.96 196335.08 12730.32 196136.83 28373.17 ANY LIMITED Average Realization Rate From Sale of Power 2016-17 (` in Lakh) ANNUAL

Average Opening Revenue Net Provision Revenue Collection Account Code Units Sold FEC Corporate Account Head - Realizationbalance Demand provision for Demand for the Closing Tariff No. of demand Office LT Category Demand Closing Consumers Units % of Rate per as on as per for unbilled withdrawalasper as per Adjustments year Balance Balance Unit (Ps.) 01.04.2016 DCB revenue of revenue 16-17 REPOR Series Series (MU) Units Sold accounts Accounts Public Water Supply & HT - 1 61.250 23.250 88 86.428 1.80% 510.55 1448.64 4414.22 28.52 - 30.13 4412.61 133.27 4048.19 1709.92 Sewerage Pumping T Industrial, Non-Industrial, HT - 2a 61.255 23.255 784 566.600 11.82% 783.31 12184.42 44078.65 560.45 49.44 207.11 44382.56 -782.08 43276.34 14279.83 2016-17 Non-Commercial and Railway Traction Commercial HT - 2b 61.256 23.256 624 186.068 3.88% 881.33 1651.57 16387.37 78.79 - 67.51 16398.65 139.81 16433.41 1544.51 Hospitals & Educational HT - 2c 61.257 23.257 & 264 154.851 3.23% 731.30 1042.96 11559.38 -180.23 2.60 52.22 11324.33 -175.50 11610.18 984.82 Institutions & 61.258 23.258 Irrigation and Agricultural HT - 3a&b 61.260 23.260 26 16.032 0.33% 287.06 68.45 458.68 3.97 - 2.44 460.21 0.04 428.51 102.55 Farms, Private Horticultural Nurseries, Coffee and Tea and Arecanut Plantations. Residential Apartments and HT - 4 61.271 23.271 52 18.816 0.39% 633.21 137.51 1192.73 5.39 - 6.66 1191.46 22.15 1204.07 109.41 Hospitals.

109 HT- Temporary Power supply HT- 5 61.290 23.290 16 5.500 0.11% 1240.10 68.23 675.02 8.90 - 1.87 682.06 31.05 662.47 58.64 Wheeled energy 81.210 TOTAL OF HT 1854 1115.505 23.27% 706.87 16601.77 78766.05 505.80 52.03 367.95 78851.87 -631.27 77663.18 18789.68 TOTAL (LT + HT) 2220040 4794.424 100.00% 573.97 56087.05 275214.039 1812.911 52.101 1787.906 275186.94 12099.05 273800.01 47162.85 Sundry debtors for 23.3 2943.28 10310.04 - 6.66 10303.39 -22.35 10103.68 3165.33 electricity tax Misc. receipts from 23.7 16303.40 3012.00 - - 3012.00 10145.26 4073.60 5096.53 consumers (Interest) Misc. receipts from consumers 1079.56 - - 1079.56 1062.05 17.51 (Other than Interest) Less : Provision for withdrawal 23.8 279.86 - - - - - 120.93 of revenue demand Less : Provision for doubtful 23.9 6073.10 - - - - - 6217.97 dues from consumers Less: Revenue suspense 47.607, 152.69 - - - - - 527.48 account 47.609 Sundry receivables - trading 28.1 ------Less : Withdrawal of revenue 76.08 - - 76.08 - 76.08 - demand GRAND TOTAL 2220040 4794.424 68828.08 289539.56 1812.91 58.76 1787.91 289505.80 22221.96 288963.26 48575.83 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED - 4 6 4 0 0 4 3 8 7 0 0 9 ...... 8 7 9 2 3 0 7 4 7 2 3 6 15 2 8 1 7 2 2 as on 3 4 3 7 5 4 Balance 2 4 in lakhs) 31.03.2017 ` (

9 1 0 9 0 0 . . . 9 7 7 2 2 5 14 9 0 9 5 1 6 Subsidy released 5 5 for 2016-17 - - - 0 0 0 0 . . 2 2 13 2 2 7 ments 7 Adjust 7 7 - - - - 4 1 5 - 0 0 0 . . . 9 7 6 3 2 6 12 otal 0 0 0 T 7 1 8 7 7 bill amount 5 5 0 1 0 2 . . . 0 4 4 0 4 4 11 Un- 1 2 3 4 4 Metered Demand 4 4 9 6 5 8 9 8 . . . 8 2 1 3 8 2 10 9 7 7 2 3 Metered 3 3 - - 9 6 4 0 9 2 8 7 0 8 . . . . . 9 7 9 3 9 9 6 4 7 3 2 1 8 1 2 4 as on 2 4 3 5 5 Balance Opening 1 01.04.2016 - - - - 6 3 9 0 9 9 . . . 8 3 1 8 2 1 otal 4 T 6 6 1 1 - - - - 9 1 0 0 3 4 . . . 4 3 7 7 3 Un- 3 9 9 Metered - - 7 2 9 9 6 5 . . Consumption in Mus . 3 0 4 6 9 1 0 6 7 Metered - - - - 9 9 8 2 4 7 1 0 1 1 3 4 5 otal 9 4 3 T 2 1 4 - - - - 5 3 8 4 4 8 8 3 1 8 8 4 7 9 2 Un- 2 1 Metered - - - - 4 6 0 8 0 9 2 7 9 No of Live Installations 2 4 3 6 ower supply to IP Sets having connected load upto 10 HP and BJ/KJ consumers 9 1 0 1 1 3 Metered consuming upto 18 Units per month, including Opening balance and Other arrears 7 t s 1 ree P o O c a 0 y r t o f r t e 2 - F b o G p e o . 3 f p Subsidy received from GOK in 2016-17 against the demand raised during towards 1 u r 7 d 1 o e s s r r - t 0 t - 0 e K J d . - e e 2 t 0 e p O r 1 O a K 1 p n 2 7 / S 3 . s p n G

0 e m J 1 i ) h 4 a u d P 2 t t 0 y I B - a m 0 t e d n t . n 2 t b 4 g Y n e o o s 1 o e a T t t n 2 F u R d d i u 0 L i D j m m o

y y ( n u y S & l l a d y r c r E u s d m P articulars p p p i f P T a a c e 2 3 R n o P s p p e a p 7 1 r p H e 0 d r o C f O - u u b i 6 t 0 b e t h t L s 0 1 s s R u e t s t 2 s a i n L A 1 r r 1 N . r r o l E S S l t o n u e 0 o 3 e e G E K o a p o 2 t R P 0 TA U t p : w N w w m r I . o s r a e o O m r A o o O e f Y p 8 1 a n P u P 1 I A o f 3 R P N N B G F p T 1 2 3 4 5 6 1 SI. No.

110 ANNUAL REPORT 2016-17 - 1 0 1 1 5 1 3 4 3 6 9 0 6 1 0 5 7 1 ...... 1 0.42 0.02 0.82 5.29 4 2 0 3 3 1 8 0 1 otal -0.06 -0.01 -1.40 1 - - 31.04 11.93 92.27 25.83 31.12 3 7 -14.94 140.94 377.50 166.28 (col. 273.93 103.56 166.28 574.89 in Crs) 9 to 10) G. T ` ( - 3 6 6 0 7 8 4 8 2 6 7 3 2 7 0 2 1 2 ...... 0 0.27 0.28 1.99 3.39 1.51 0.45 0.38 0.01 1.44 0.03 0.58 1.33 0.60 1.33 4 5 0 3 2 0 0 0 0 1 15.01 10.08 62.24 48.37 13.87 64.17 1 Closing Balance Negative - 2 6 5 1 2 9 7 2 5 0 6 3 8 9 0 7 9 3 ...... 0.69 0.28 0.07 0.47 0.32 0.82 0.04 5.31 0 8 0 6 5 1 8 0 1 9 34.44 13.44 26.41 otal 31.72 3 8 T 142.93 102.35 439.74 167.61 322.30 117.43 167.61 639.06 (col. 5 to 8) ------7 1 4 2 2 5 8 6 ANDING AS ON 31.03.2017 9 0 5 9 1 1 0 2 ...... 8.76 0.33 0.56 5.28 5.84 1 0 0 5 0 0 0 0 50.18 43.55 51.11 43.88 51.11 8 8 191.86 147.98 248.81 More than FIVE years ------5 8 8 1 3 3 9 0 0 8 0 0 ...... 0.01 4.57 0.82 8.13 0.06 2.50 8.96 2.55 0 0 0 0 0 0 25.65 41.17 29.85 32.22 29.85 73.58 7 but less More than Agewise analysis for Closing Balance THREE years than FIVE years ------5 1 6 7 1 7 5 8 0 6 1 3 0 0 ...... 0.01 9.23 2.33 0.03 0.18 0.86 3.72 4.58 6 0 0 0 2 0 0 32.34 35.27 89.51 44.74 51.70 37.81 44.74 6 138.84 Less than More than THREE years ONE year but - - 2 0 3 3 1 9 5 1 0 9 3 5 7 4 7 0 ...... 0.67 0.28 0.07 9.95 0.44 0.15 0.82 0.04 3.83 0 8 0 5 0 5 0 1 34.76 11.88 15.39 14.91 41.91 90.41 26.78 18.74 41.91 2 117.19 5 177.84 one year less than AILS FOR THE ARREARS OUTST 7 7 7 7 7 7 7 7 7 1 0 1 5 9 0 1 9 0 0 1 1 1 1 2 2 2 3 1 1 1 1 1 1 1 1 1 ...... 4 1 1 1 1 1 1 1 1 1 61.1317 61.1337 61.1257 61.1417 61.1457 61.2507 61.2557 61.2567 61.2577 61.2607 61.2717 61.2907 6 6 6 6 6 6 6 6 6 Head Account , AGE WISE DET P H 0 4 w o l 3 e b s t n s w u e o o b i i l t r e 5 u e articulars t B s i e t r P & v s TEGORY WISE u P P o n n P H I b H l l l H 0 5 A a a a - - i r 1 0 n s s c u c 1 r t i e o e e l t i i i e v t r r o u s t t t o a c m e J s s i p c b t K u u r m m u / U A d d atersupply atersupply o o o J d emporary emporary P P n n B D E C I I H I I Industries- 40HP & above but below 67 HP Industries-67HP & above W Streetlight T W Industries Commercial Hospitals& Institutions Lift irrigation Colony supply T ) 2 ) I I I ( ( ariff A B A B C B B T 1 2 2 3 4 4 4 5 5 -1 -2A -2B -2C -3 ------5B(III) -5B(IV) -6A -6B -7 T T T T T T T T T T T T T T T L L L L L L L L L L L L L L HT HT HT HT HT HT4 HT 5 HT L ax . y r AL (A+B+C+D) AL - (A+B) o - C TEMENT SHOWING CA g T) - A e AX A t 1 7 7 7 7 7 7 7 7 7 a 1 0 1 5 9 0 1 9 0 C ST 0 1 1 1 1 2 2 2 3 AL (L AL (HT) - B AL T AL Mise Rev- D T 1 1 1 1 1 1 1 1 1 ...... L A/c Code . Mise Rev (23 series) 3 3 3 3 3 3 3 3 3 T+HT TOT . I 2 2 2 2 2 2 2 2 2 23.1317 23.1337 23.1257 23.1417 23.1457 TOT II.HT Category 23.2507 23.2557 23.2567 23.2577 23.2607 23.2717 23.2907 TOT L III. Electricity T 23.3017 23.3027 TOT IV 23.700 TOT GRAND TOT

111 MESCOM Annexure-4 Proposed Capital Budget of MESCOM for the year FY-18 & FY-19 Rs. In Cr. Sl. MESCOM Proposal No. Particulars FY-18 FY-19 E&I Works (Addl. Transformers, Link-Lines, HT/LT Re- 1 100.00 150.00 conductoring, HVDS ) 2 DTC metering, 45.00 0.25 Replacement of MNR/DC & Electromagnetic meters 3 by Static meters and providing SMC meter protection 5.00 5.00 box wherever required. 4 Replacement of faulty Distribution Transformers 40.00 45.00 5 Service Connection including promoter vanished layout Works40.00 45.00 6 Rural Electrification (General) a Electrification of Hamlets 2.00 2.00 Energisation of IP sets Including providing b 75.00 75.00 Infrastructure to regularized UIP c Kutir Jyothi 0.25 0.25 Sub- Total of Sl.No.6 77.25 77.25 7 Tribal Sub-Plan a Electrification of Tribal Colonies 1.50 1.50 b Energisation of IP sets 0.75 0.75 c Kutir Jyothi 0.05 0.05 Sub- Total of Sl.No.7 2.30 2.30 8 Special Component Plan a Electrification of S.C Colonies 1.00 1.00 b Energisation of IP sets 1.00 1.00 c Kutir Jyothi 0.10 0.10 Sub- Total of Sl.No.8 2.10 2.10 9 Tools & Plants & Computers 5.00 5.00 10 Civil Engineering Works 16.00 16.00 11 33 KV Station and Line Works 45.00 37.50 Total (Sl.No.1 to 11) 377.65 385.40 KERC Approved CAPEX 289.40 289.90 New Schemes proposed for 2016-17 Deen Dayal Upadyaya Grama Jyoti Yojana (DDUGJY) 59.90 170.00 R - Accelarated Power Development and Reform Programme37.89 (IPDS: System improvement63.00 & Strengthening works in R-APDRP/statutory towns) Energisation of IP sets Including providing Infrastructure to regularized165.00 UIP 185.00 Improvement works for Model Electricity Village 50.00 0.10 Sub Total 312.79 418.10 Grand Total 690.44 803.50

MESCOM Ltd. ANNUAL REVENUE REQUIREMENT

Ref. Particulars FY-12 FY-13 FY-14 FY-15 Form (As per (As per (As per (As per Audited Audited Audited Audited Accounts) Accounts) Accounts) Accounts)

D-1 Energy at Generation Point (Mus) 4,325.69 4,474.18 4,769.69 4,838.62 Transmission Loss (%) 3.96% 4.33% 3.88% 3.10% D-1 Energy at Interface Point (Mus) 4,154.39 4,280.45 4,584.63 4,688.54 D-2 Energy Sales (Mus) 3,652.17 3,771.88 4,037.56 4,146.18 Distribution Loss (%) 12.09% 11.88% 11.93% 11.57% INCOME: D-2 Revenue from sale of power 1,252.31 1,406.18 1,580.20 1,760.59 D-3 Revenue subsidies & grants 330.08 342.53 372.57 430.75 D-4 Other Income 2.05 210.40 252.42 140.17 TOTAL INCOME 1,584.44 1,959.11 2,205.19 2,331.51 EXPENDITURE: D-1 Purchase of Power 1,137.07 1,378.27 1,484.68 1,467.63 Tr. Charges payable to KPTCL 137.37 158.89 182.87 184.41 SLDC Charges 1.82 0.25 1.33 6.10 Total Power purchase cost 1,276.26 1,537.41 1,668.88 1,658.14 D-5 Repairs & maintenance 13.36 15.12 20.11 34.94 D-6 Employee Costs 187.79 208.55 222.84 226.41 D-7 Administrative & General expenses 30.74 36.40 46.33 60.42 D-8 Deprecition & related debits 58.89 50.84 54.71 63.68 D-9 Interest & Finance charges 121.43 184.66 182.64 196.95 D-10 LESS: Int. & Fin.charges capitalized (2.25) (2.07) (2.51) (2.39) D-11 Other debits (incl. Bad debts) 3.58 4.19 13.65 6.46 D-12 Extraordinary Items - (78.43) (0.47) (3.43) D-13 Net prior period (credits) / charges (113.92) (11.93) (1.89) (28.62) Provision for Taxes 2.15 1.73 0.47 3.43 Funds towards consumer Relations - 0.05 0.23 0.05 TOTAL EXPENDITURE 1,578.03 1,946.52 2,204.99 2,216.04 A-4 Return on Equity - - Regulatory Asset - - - Regulatory Asset carried forward 101.54 Carrying cost on Regulatory Assets - - APR (Surplus) / Deficit Carry forward - - - Disallowance for imprudent capex - Less: Other Income (2.05) (210.40) (252.42) (140.17) ANNUAL REVENUE REQUIREMENT 1,575.98 1,736.12 1,952.57 2,177.41

REVENUE SURPLUS / (DEFICIT): 6.41 12.59 0.20 13.93 MESCOM Ltd. ANNUAL REVENUE REQUIREMENT Format-A1 Rs. In Cr (TOTAL) Rs. In Cr Ref. Particulars FY-16 FY-17 FY-18 FY-19 FY-19 Form (As apprd (As per (As proposed (APR Appd. (As apprd (As per (As proposed (As apprd (Revised (Revised (Projection in Tariff Audited for APR) by KERC in Tariff Audited for APR) in Tariff Projection) Projection) @ Proposed Order 2015 Accounts) in TO-2017) Order 2016) Accounts) Order 2017) Tariff) [wef 1-4-15] [wef 1-4-16] D-1 Energy at Generation Point (Mus) 5,287.58 5,027.72 5,027.72 5,027.72 5,460.56 5,668.84 5,668.84 5,583.87 5,782.67 5,966.22 5,966.22 Transmission Loss (%) 3.80% 3.15% 3.15% 3.15% 3.47% 4.54% 4.54% 3.37% 3.37% 3.27% 3.27% D-1 Energy at Interface Point (Mus) 5,086.65 4,869.12 4,869.12 4,869.12 5,190.59 5,411.61 5,411.61 5,311.06 5,587.79 5,771.12 5,771.12 D-2 Energy Sales (Mus) 4,523.50 4,309.17 4,309.17 4,309.17 4,611.84 4,794.42 4,794.42 4,724.19 4,959.16 5,127.64 5,127.64 Distribution Loss (%) 11.25% 11.50% 11.50% 11.50% 11.15% 11.40% 11.40% 11.05% 11.25% 11.15% 11.15% INCOME: D-2 Revenue from sale of power 1,935.67 1,852.20 1,852.20 1,852.19 2,189.21 2,024.06 2,024.06 2,389.05 2,181.39 2,244.62 2,570.34 D-3 Revenue subsidies & grants 513.12 511.02 511.02 511.02 584.74 785.85 785.85 733.80 913.79 952.62 1,248.41 D-4 Other Income 95.97 396.26 47.74 46.25 73.77 531.88 73.71 39.87 28.77 28.77 28.77 TOTAL INCOME 2,544.76 2,759.48 2,410.96 2,409.46 2,847.72 3,341.79 2,883.62 3,162.72 3,123.95 3,226.01 3,847.52 EXPENDITURE: D-1 Purchase of Power 1,767.35 2,010.15 2,010.15 2,010.15 1,949.45 2,291.69 2,291.69 1,796.76 2,335.16 2,407.58 2,407.58 Tr. Charges payable to KPTCL 217.21 218.70 218.70 218.70 246.90 248.38 248.38 216.20 216.20 251.83 251.83 SLDC Charges 2.52 1.71 1.71 1.71 1.64 1.64 1.64 1.94 1.94 2.02 2.02 Total Power purchase cost 1,987.08 2,230.56 2,230.56 2,230.56 2,197.99 2,541.71 2,541.71 2,014.90 2,553.30 2,661.43 2,661.43 D-5 Repairs & maintenance 33.04 33.04 35.88 35.88 40.75 45.25 45.25 D-6 Employee Costs 344.83 249.24 249.24 338.46 391.78 266.98 266.98 429.30 317.66 372.28 372.28 D-7 Administrative & General expenses 67.41 67.41 68.27 68.27 83.12 92.30 92.30 D-8 Deprecition & related debits 72.37 63.74 63.64 64.08 77.38 78.45 78.45 79.60 90.91 106.86 106.86 D-9 Interest & Finance charges 159.90 111.91 137.47 125.89 163.12 129.31 138.07 164.48 174.70 193.99 193.99 D-10 LESS: Int. & Fin.charges capitalized (2.51) (1.30) (1.30) (2.32) (2.39) (2.39) (2.39) (1.30) (2.39) (2.39) (2.39) D-11 Other debits (incl. Bad debts) - 5.03 5.03 4.53 - 20.20 20.20 - 3.95 3.95 3.95 D-12 Extraordinary Items - (5.02) - (2.70) - (3.07) - - - - - D-13 Net prior period (credits) / charges - (8.66) - (8.66) - 190.13 190.13 - 1.93 1.93 1.93 Provision for Taxes - 2.31 2.31 - - 3.07 3.07 - - - - Funds towards consumer Relations 0.50 0.11 0.11 0.11 0.50 0.31 0.31 0.50 0.50 0.50 0.50 TOTAL EXPENDITURE 2,562.17 2,748.37 2,787.51 2,749.95 2,828.38 3,328.85 3,340.68 2,687.48 3,264.43 3,476.10 3,476.10 A-4 Return on Equity 61.71 49.20 49.20 71.61 80.76 79.90 101.74 117.50 117.50 Regulatory Asset 101.02 ------Regulatory Asset carried forward (92.25) - - 92.25 - - - (283.90) Carrying cost on Regulatory Assets - - 6.05 - - - APR (Surplus) / Deficit Carry forward (86.00) - - (144.52) 395.74 - 537.82 537.82 Disallowance for imprudent capex (1.89) (0.40) - Less: Other Income (95.97) (396.26) (47.74) (46.25) (73.77) (531.88) (73.71) (39.87) (28.77) (28.77) (28.77) ANNUAL REVENUE REQUIREMENT 2,448.79 2,352.11 2,788.97 2,758.95 2,773.95 2,796.97 3,347.73 3,122.85 3,337.40 4,102.65 3,818.75

REVENUE SURPLUS / (DEFICIT): - 11.11 (425.75) (395.74) - 12.94 (537.82) - (242.22) (905.41) - MESCOM Ltd. ANNUAL REVENUE REQUIREMENT Format-A1 (Distribution Business) Rs. In Cr Ref. Particulars FY-17 FY-18 FY-19 Form (As apprd (As proposed (As apprd (Revised (Revised in Tariff for APR) in Tariff Projection) Projection) Order 2016) Order 2017) [wef 1-4-16] [wef 1-4-17] D-1 Energy at Generation Point (Mus) Transmission Loss (%) D-1 Energy at Interface Point (Mus) D-2 Energy Sales (Mus) Distribution Loss (%) INCOME: D-2 Revenue from sale of power D-3 Revenue subsidies & grants D-4 Other Income TOTAL INCOME EXPENDITURE: D-1 Purchase of Power - - - - - Tr. Charges payable to KPTCL - - - - - SLDC Charges - - - - - Total Power purchase cost - - - - - D-5 Repairs & maintenance 23.63 28.51 31.69 D-6 Employee Costs 152.80 101.44 167.43 120.71 141.47 D-7 Administrative & General expenses 19.29 19.36 21.58 D-8 Deprecition & related debits 65.00 66.55 66.86 77.08 90.60 D-9 Interest & Finance charges 75.77 102.39 76.80 133.63 149.69 D-10 LESS: Int. & Fin.charges capitalized (2.39) (2.39) (1.30) (2.39) (2.39) D-11 Other debits (incl. Bad debts) - 18.75 - 2.50 2.50 D-12 Extraordinary Items - - - - - D-13 Net prior period (credits) / charges - 190.13 - 1.93 1.93 Provision for Taxes - - - - - Funds towards consumer Relations - - - - - TOTAL EXPENDITURE 291.18 519.79 309.79 381.33 437.07 A-4 Return on Equity 55.85 62.99 62.32 79.36 91.65 Regulatory Asset - - - - - Regulatory Asset carried forward - - - - - Carrying cost on Regulatory Assets - - - - - APR (Surplus) / Deficit Carry forward - - - - - Disallowance for imprudent capex - - - - - Less: Other Income (5.16) - (6.25) - - ANNUAL REVENUE REQUIREMENT 341.87 582.78 365.86 460.69 528.72

REVENUE SURPLUS / (DEFICIT): MESCOM Ltd. ANNUAL REVENUE REQUIREMENT Format-A1 (Retail Supply Business) Rs. In Cr Ref. Particulars FY-17 FY-18 FY-19 Form (As apprd (As proposed (As apprd (Revised (Revised in Tariff for APR) in Tariff Projection) Projection) Order 2016) Order 2017) [wef 1-4-16] [wef 1-4-17] D-1 Energy at Generation Point (Mus) Transmission Loss (%) D-1 Energy at Interface Point (Mus) D-2 Energy Sales (Mus) Distribution Loss (%) INCOME: D-2 Revenue from sale of power D-3 Revenue subsidies & grants D-4 Other Income TOTAL INCOME EXPENDITURE: D-1 Purchase of Power 1,949.45 2,291.69 1,796.76 2,335.16 2,407.58 Tr. Charges payable to KPTCL 246.90 248.38 216.20 216.20 251.83 SLDC Charges 1.64 1.64 1.94 1.94 2.02 Total Power purchase cost 2,197.99 2,541.71 2,014.90 2,553.30 2,661.43 D-5 Repairs & maintenance 12.25 12.24 13.56 D-6 Employee Costs 238.99 165.54 261.87 196.95 230.81 D-7 Administrative & General expenses 48.98 63.76 70.72 D-8 Deprecition & related debits 12.38 11.90 12.74 13.83 16.26 D-9 Interest & Finance charges 87.35 35.68 87.27 41.07 44.30 D-10 LESS: Int. & Fin.charges capitalized - - - - - D-11 Other debits (incl. Bad debts) - 1.45 - 1.45 1.45 D-12 Extraordinary Items - - - - - D-13 Net prior period (credits) / charges - - - - - Provision for Taxes - 3.07 - - - Funds towards consumer Relations 0.50 0.31 0.50 0.50 0.50 TOTAL EXPENDITURE 2,537.21 2,820.89 2,377.28 2,883.10 3,039.03 A-4 Return on Equity 15.75 17.77 17.58 22.38 25.85 Regulatory Asset - - - - - Regulatory Asset carried forward 92.25 - - - - Carrying cost on Regulatory Assets - - - - APR (Surplus) / Deficit Carry forward (144.52) - 395.74 - 537.82 Disallowance for imprudent capex - - - - - Less: Other Income (68.61) (73.71) (33.61) (28.77) (28.77) ANNUAL REVENUE REQUIREMENT 2,432.08 2,764.95 2,756.99 2,876.71 3,573.93

REVENUE SURPLUS / (DEFICIT): MESCOM Ltd.

Balance Sheet as at the year end. Format-A2

FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Sl. Particulars (Actuals) (Actuals) (Actuals) (Actuals) (Actuals) (Actuals) (Revised (Revised No. Projections) Projections)

I. SOURCES OF FUNDS (Rs. In Cr.) A. Shareholders Funds i. Share Capital 172.07 191.07 216.07 216.07 266.36 358.07 358.07 358.07 ii. Share Deposit - - 14.00 36.66 14.00 14.00 14.00 14.00 iiI. Reserves & Surplus 79.33 98.41 111.73 137.37 143.94 125.40 205.42 297.84 A-Subtotal: 251.40 289.48 341.80 390.10 424.30 497.47 577.49 669.91 B. Loan Funds i. Loan from State Government 7.21 2.66 2.31 1.97 1.63 0.62 0.33 0.04 ii. Loan from others - Secured 379.78 361.38 396.80 440.02 459.23 533.25 657.89 778.46 iii. Loan from others - Unsecured 7.78 20.65 18.13 18.03 16.51 13.71 11.67 9.64 B-Subtotal: 394.77 384.69 417.24 460.02 477.37 547.58 669.89 788.14 C. Contributions, Grants & Subsidies towards cost of Capital 303.16 29.11 50.30 - 11.51 44.80 44.80 44.80 TOTAL SOURCES OF FUNDS (A+B+C): 949.33 703.28 809.34 850.12 913.18 1,089.85 1,292.18 1,502.85

II. APPLICATION OF FUNDS (Rs. In Cr.) A. Net Fixed Assets i. Gross Block 1,374.52 1,173.32 1,278.67 1,388.84 1,567.18 1,765.90 2,084.67 2,427.91 ii. Less: Accumulated Depreciation 447.53 421.18 465.63 515.92 563.22 625.72 698.86 785.69 iii. Net Fixed Assets (i-ii) 926.99 752.14 813.04 872.92 1,003.96 1,140.18 1,385.81 1,642.21 iv. Capital Work-in-Progress 72.24 53.39 94.39 103.40 118.14 146.55 131.90 118.71 v. Assets not in use ------vi. Deferred Costs ------vii. Intangible Assets - 2.30 2.72 2.72 3.17 4.25 4.25 4.25 a-Subtotal: 999.23 807.83 910.15 979.04 1,125.27 1,290.98 1,521.96 1,765.17 MESCOM Ltd.

Balance Sheet as at the year end. Format-A2

FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Sl. Particulars (Actuals) (Actuals) (Actuals) (Actuals) (Actuals) (Actuals) (Revised (Revised No. Projections) Projections)

B. Investments: i. Investments 2.51 2.51 2.51 2.51 2.51 2.51 2.51 2.51 ii. Interest accrued on investments ------iii. Subsidy receivable from Governement 270.69 270.69 294.45 298.47 154.30 442.61 442.61 442.61 b-Subtotal: 273.20 273.20 296.96 300.98 156.81 445.12 445.12 445.12 C. Net Current Assets a. Current Assets i. Inventories 38.03 34.72 67.33 60.24 63.03 42.26 42.26 42.26 ii. Receivables against Sale of Power 471.97 519.19 601.09 672.02 688.28 485.76 547.66 611.60 iii. Cash & Bank Balances 37.39 46.88 39.25 33.10 41.48 72.56 82.56 92.56 iv. Loans & Advances 24.40 82.36 105.08 94.75 116.29 134.64 134.64 134.64 v. Sundry Receivables 841.58 997.55 1,208.38 1,236.80 1,680.96 2,045.94 2,035.71 2,025.53 vi. Profit & Loss Account ------a-Total Current Assets: 1,413.37 1,680.70 2,021.13 2,096.91 2,590.04 2,781.16 2,842.83 2,906.59 b. Current Liablities i. Security Deposit from Consumers 341.06 377.36 423.35 432.12 467.44 509.09 550.74 592.39 ii. Borrowings for Working Capital 90.63 68.71 213.39 216.56 295.10 375.23 570.22 595.92 iii. Payments due on Capital Liabilities - - iv. Other Current Liabilities 1,304.78 1,612.38 1,782.16 1,878.13 2,196.40 2,543.09 2,396.77 2,425.72 v. Pension Trust / Retirement provision ------FBF Trust ------b-Total Current Liabilities: 1,736.47 2,058.45 2,418.90 2,526.81 2,958.94 3,427.41 3,517.73 3,614.03 C-Net Current Assets [a-b] (323.10) (377.75) (397.77) (429.90) (368.90) (646.25) (674.90) (707.44) TOTAL APPLICATION OF FUNDS (A+B+C) 949.33 703.28 809.34 850.12 913.18 1,089.85 1,292.18 1,502.85 MESCOM Ltd.

CASH FLOW STATEMENT Format-A3

Sl. Fy-12 Fy-13 Fy-14 Fy-15 Fy-16 Fy-17 Fy-18 Fy-19 Particulars No. (Actuals) (Actuals) (Actuals) (Actuals) (Actuals) (Actuals) (Proj.) (Proj.)

I Net Funds from Operations : 1 Net Funds from Earnings : Profit before Tax 8.56 14.32 6.93 17.36 13.42 16.01 80.02 92.42 Less : Other debits 3.58 3.97 13.38 6.46 5.03 20.20 3.95 3.95 Prior period -113.93 28.12 5.97 -28.62 -8.66 190.13 1.93 1.93 Other income 44.36 25.32 252.34 140.17 396.26 73.71 28.77 28.77 Subsidy and Grants - - Income Tax payment during the year -2.15 -1.73 -1.52 -3.43 -2.31 -3.07 -3.07 -3.07 Total of A -59.58 70.00 277.10 131.94 403.74 296.98 111.60 124.00 B. Add : Debits to Revenue Account not requiring Cash Ooutflow : (I) Depreciation 58.89 51.10 54.97 63.68 63.74 78.45 90.91 106.86 (ii) Amortisation of Deferred Cost - - (iii) Amortisation of Intangible Assets - - (iv) Investment Allowance Reserve - - (v) Others, if any. - 6.49 7.91 11.71 - Total of B 58.89 57.59 62.88 75.39 63.74 78.45 90.91 106.86 C. Less : Credits to Revenue Account not invloving Cash Receipts : (I) Depreciation - - (ii) Return on capital - - (ii) Amortisation of Deferred Cost - - Total of C - - Net Funds from Earnings (A+B-C) -0.69 127.59 339.98 207.33 467.48 375.43 202.51 230.86 MESCOM Ltd.

CASH FLOW STATEMENT Format-A3

Sl. Fy-12 Fy-13 Fy-14 Fy-15 Fy-16 Fy-17 Fy-18 Fy-19 Particulars No. (Actuals) (Actuals) (Actuals) (Actuals) (Actuals) (Actuals) (Proj.) (Proj.)

2 Contributions, Grants and Subsidies towards Cost of Capital Assets 40.36 -274.05 21.19 -50.30 11.51 33.29 - - 2a Reserve for material cost varience -4.31 - 3 Security Deposit from consumers 34.26 36.30 45.99 51.52 35.32 41.65 41.65 41.65 4 Proceeds from disposal of Fixed Assets - - 5 Total Funds from Operations (1+2+3+4) 69.62 -110.16 407.16 208.55 514.31 450.37 244.16 272.51 6 Net Increase/(Decrease) in Woring Captial A.Increase/(Decrease) in Current Assets : a) Inventories -15.77 -2.22 -32.61 7.09 -2.79 20.77 - - b) Receivables against sale of power -96.41 -47.22 -81.90 -70.93 -16.26 202.52 -61.90 -63.94 c) Loans and Advances 7.69 -22.74 -22.72 10.33 -21.54 -18.35 - - d) Sundry Receivables -233.43 -185.66 -234.59 -32.44 -299.99 -653.29 10.23 10.18 Total of A -337.92 -257.84 -371.82 -85.95 -340.58 -448.35 -51.67 -53.76 B.Increase/(Decrease) in Current Liabilities : a) Borrowings for working capital 49.63 -21.92 144.68 3.17 78.54 80.13 194.99 25.70 b) Other Current liabilities - Power purchae 255.27 348.07 -25.48 0.18 - - - - Others - -40.47 195.26 53.03 313.73 315.21 -143.25 32.02 Total of B 304.90 285.68 314.46 56.38 392.27 395.34 51.74 57.72 MESCOM Ltd.

CASH FLOW STATEMENT Format-A3

Sl. Fy-12 Fy-13 Fy-14 Fy-15 Fy-16 Fy-17 Fy-18 Fy-19 Particulars No. (Actuals) (Actuals) (Actuals) (Actuals) (Actuals) (Actuals) (Proj.) (Proj.)

Net Increase/(Decrease) in Woring Captial (A-B) -33.02 27.84 -57.36 -29.57 51.69 -53.01 0.07 3.96 7 Net funds from operations before subsidies & grants (5+6) 36.60 -82.32 349.80 178.98 566.00 397.36 244.23 276.47 8 Receipts from Revenue Subsidies and Grants ------Tot I Net Funds from Operations including Subsidies & Grants (7+8) 36.60 -82.32 349.80 178.98 566.00 397.36 244.23 276.47 II Net Increase/(Decrease) in Capital Liabilities : A. Fresh Borrowings : (a) State Loans 1.82 ------(b) Foreign currency Loans/Creditors ------(c) Other Borrowings 11.93 -10.08 106.90 158.22 120.00 182.00 262.61 288.54 Total of A 13.75 -10.08 106.90 158.22 120.00 182.00 262.61 288.54 B. Repayments : Repayment of Principal 74.35 (a) State Loans 2.73 4.89 0.35 0.34 0.35 0.35 - - (b) Foreign currency Loans/Creditors ------(c) Other Borrowings 69.75 75.63 74.00 115.09 102.30 111.45 140.29 170.29 Total of B 72.48 80.52 148.70 115.43 102.65 111.80 140.29 170.29 Net increase/(Decrease) in capital liailities (A-B) -58.73 -90.60 -41.80 42.79 17.35 70.20 122.32 118.25 III Increase/(Decrease) in Equity Capital 14.73 19.00 39.00 22.66 27.63 91.71 - - IV Total Funds available for Capital Expenditure (I+II+III) -7.40 -153.92 347.00 244.43 610.98 559.27 366.55 394.72 MESCOM Ltd.

CASH FLOW STATEMENT Format-A3

Sl. Fy-12 Fy-13 Fy-14 Fy-15 Fy-16 Fy-17 Fy-18 Fy-19 Particulars No. (Actuals) (Actuals) (Actuals) (Actuals) (Actuals) (Actuals) (Proj.) (Proj.)

V Funds Utilised on Capital Expenditure : (a) On projects 49.19 -223.12 82.52 132.57 209.52 243.08 321.89 350.07 (b) Released Assets reissued to works ------© Intangible Assets - 2.30 0.42 - 0.45 1.08 - - (d) Deferred Costs ------Total of V 49.19 -220.82 82.94 132.57 209.97 244.16 321.89 350.07 Other debits -3.58 -3.97 -13.38 -6.46 -5.03 -20.20 -3.95 -3.95 Prior period 113.93 -28.12 -5.97 28.62 8.66 -190.13 -1.93 -1.93 Other income -44.36 -25.32 -252.34 -140.17 -396.26 -73.71 -28.77 -28.77 VI Net Increase/(Decrease) in Investments ------VII Net Increase/(Decrease) in Cash and Bank Balance (IV-V-VI) 9.40 9.49 -7.63 -6.15 8.38 31.07 10.01 10.00 VIII Add : Opening Cash & Bank balances 28.29 37.40 46.89 39.25 33.10 41.48 72.55 82.56 IX Closing Cash and Bank Balances (VII + VIII) 37.69 46.89 39.25 33.10 41.48 72.55 82.56 92.56 MESCOM Ltd.

ANNUAL REVENUE REQUIREMENT Format-A4

Ref. Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 (As Form No. (As per APR) (As per APR) (As per APR) (As per APR) (As per APR) (Revised (Revised proposed for APR) Project.) Project.)

1a Paid-up Share Capital at the beginning of the year 157.34 172.07 191.07 216.07 216.07 266.36 358.07 358.07 1b Share Deposit at the beginning of the year - - - 14.00 36.66 14.00 14.00 14.00 1c Capital Reserves at the beginning of the year 53.76 60.18 71.44 111.73 85.57 155.45 170.20 250.22 (26.00) (26.00) (26.00) (26.00) (26.00) 1d Equity Reserves & Surplus at the beginning of the year (1a+1b+1c) 211.10 232.25 236.51 341.80 312.30 409.81 516.27 596.29 2 ROE 15.5% @(+MAT/Tax) 45.45 45.00 36.66 42.74 49.20 80.76 101.74 117.50 A-1 3 Total Expenditure 1,685.78 2,040.03 2,118.85 2,190.60 2,757.49 3,150.55 3,262.50 4,011.99 A-1 4 Regulatory Asset / Previous years' deficit / prior period subsidy ------A-1 5 Other Income (44.32) (24.15) (250.97) (138.82) (47.74) (73.71) (28.77) (28.77) A-1 6 Net Prior Period Credits (CHARGES) (113.91) (11.94) (1.11) (4.95) - 190.13 1.93 1.93 A-1 7 Provision for Income Tax 2.15 (6.64) ------8 Annual Revenue Requirement 1,529.70 1,997.30 1,866.77 2,046.83 2,758.95 3,347.73 3,337.40 4,102.65 MESCOM Ltd.,

Source wise Power Purchase Cost FY 15 (Actuals) Format-D1

Sl. Source MU Amount Avg. No. in Cr. Ps/KWh) KPCL-Thermal 1 RTPS I to II 202.77 76.84 378.95 2 RTPS III 111.09 40.23 362.14 3 RTPS IV 116.49 41.19 353.59 4 RTPS V to VI 223.51 79.04 353.63 5 RTPS VII 103.74 39.78 383.46 6 RTPS VIII 74.98 27.39 365.3 7 BTPS Unit I 209.59 85.91 409.9 8 BTPS Unit II 243.21 99.07 407.34 KPCL-Thermal-Total: 1285.38 489.45 380.78

KPCL-Hydel 1 Sharavathi Hydro Electric Project 553.25 14.17 25.61 2 Kali Nadi Hydro Electric Project 367.39 15.37 41.84 3 Varahi Hydro Electric Project 115.69 7.92 68.46 4 Kadra Power House 33.42 4.53 135.55 5 Kodasalli Power House 31.92 3.26 102.13 6 Gerusoppa Power House 46.05 5.21 113.14 7 Ghataprabha Power House 6.62 0.96 145.02 8 Bhadra Hydro Eletric Project 4.16 1.28 307.69 9 Almatti Power House 39.97 7.36 184.14 10 Varahi Hydro Electric Project (3 &4) 0.00 4.80 0.00 11 Dis Incentive for lower availability as per PPA 0.00 -0.38 0.00 12 VVNL Hydel MGHE 34.63 1.81 52.27 13 VVNL Hydel Shivanasamudra 22.33 2.64 118.23 14 VVNL Hydel Munirabad 10.85 0.67 61.75 15 VVNL Hydel Shimsha 8.57 0.79 92.18 KPCL-Hydel-Total: 1274.85 70.39 55.21 MESCOM Ltd.,

Source wise Power Purchase Cost FY 15 (Actuals) Format-D1

Sl. Source MU Amount Avg. No. in Cr. Ps/KWh) CGS 1 NLC I 64.69 24.17 373.63 2 NLC II 171.06 53.69 313.87 3 NTPC Talcher Stage II - Unit-I 49.05 11.31 230.58 4 NTPC - RSTPS (I & II) 242.85 73.23 301.54 5 NTPC-SR - Stage III 63.71 21.96 344.69 6 NTPC-SR - Simhadri 111.5 47.56 426.55 7 M/s NTPC Tamilnadu Energy Ltd 36.11 13.76 381.06 8 NTPC VVNL 55.58 27.42 493.34 9 M/s Kudamkualm Nuclear Power Project Ltd 74.96 18.95 252.80 10 MAPS 13.6 2.83 208.09 11 NPCIL - Kaiga 140.34 43.96 313.24 CGS-Total: 1023.45 338.84 331.08

Out Side State Source 1 M/s Jurala Power ,Telangana State. 9.25 4.33 468.11

Major IPPs 1 M/S UPCL, Padubidri 82.99 37.30 449.45

Short/ Medium Term Power Purchase 1 Medium Term power purchase (1500 MW) 253.69 131.73 519.26 2 Short Term Power Purchase (500 & 250MW) 129.8 71.49 550.77 3 Non PPA with MESCOM(u/s 11) 33.42 18.24 545.78 Short/ Medium-Total: 416.91 221.46 531.19 MESCOM Ltd.,

Source wise Power Purchase Cost FY 15 (Actuals) Format-D1

Sl. Source MU Amount Avg. No. in Cr. Ps/KWh) NCE-Mini Hydel 1 Sandur Power Company 97.37 32.40 332.75 2 Subhash Kabini 45.81 20.31 443.35 3 Sahyadri 0.85 0.28 329.41 4 Master Power 6.81 2.66 390.60 5 Graphite India 3.90 1.73 443.59 6 Maruthi Power Gen I(Kabini) 7.30 3.57 489.04 7 Maruthi Power Gen (Hemavathi) 5.66 1.89 333.92 8 Moodabagil Power Pvt. Ltd., 1.05 0.39 371.43 9 Mrujaara Power Plant 2.73 0.76 278.39 10 Shamili Hydel power project pvt ltd 30.93 8.66 279.99 11 Sagar Power (Dandela) Pvt Ltd 19.57 6.22 317.83 12 Soham Mannapitlu Power Pvt Ltd 27.54 8.68 315.18 13 Sagar Power (Neerukatte) Pvt Ltd 19.46 5.43 279.03 14 AMR Power Pvt Ltd 54.96 15.39 280.02 15 SRM Power 7.43 2.08 279.95 16 Vasagi Power Projects Ltd 0.99 0.34 343.43 17 GVP Infra Projects Pvt Ltd 0.38 0.13 342.11 18 Bradavavan Hydro (Energy Prior to W&B) 0.05 0.02 400.00 19 Bhoruka Power Cor, LTD-9mw 20.39 6.82 334.48 NCE-Mini Hydel-Total: 353.17 117.75 333.41

NCE-Wind - Mill Projects 1 Power Link System Pvt Ltd. 1.13 0.38 336.28 2 Desai Brothers LTD., 1.36 0.46 338.24 3 Dinesh Pouches LTD., 1.40 0.47 335.71 4 Dempo Industries Private LTD., 1.21 0.41 338.84 5 Dewanchand Ramsaran-ELP-38 1.38 0.47 340.58 6 Ghodawat industries-WS -44 8.74 2.97 339.82 7 Lovely Fragrances-ELP- 28 1.47 0.50 340.14 8 Srinivas Sirigeri -EP2-29 1.19 0.40 336.13 9 Steelfabs offshore -ELP -37 1.36 0.46 338.24 10 Ushdev International- EP2-24 2.85 0.97 340.35 MESCOM Ltd.,

Source wise Power Purchase Cost FY 15 (Actuals) Format-D1

Sl. Source MU Amount Avg. No. in Cr. Ps/KWh) 11 Mineral Enterprises-1 ELP-39 7.86 2.67 339.69 12 Mineral Enterprises-2 ELP-20 8.91 3.03 340.07 13 M/s VS Lad & Sons (RR.noBVP-04) 1.65 0.56 339.39 14 M/s P Vengannasetty& Brothers(BVP-11) 0.94 0.32 340.43 15 M/s V.T Switchgears&transformers(BVP-10) 0.93 0.32 344.09 16 M/s MSPL Limited Phase-I(BVP-03) 1.62 0.55 339.51 17 M/s MSPL LimitedPhase-II(BVP-06) 4.84 1.65 340.91 18 M/s MSPL Limited Phase-III(BVP-08) 1.88 0.64 340.43 19 M/s .R.B Seth Shreeram, Narasingdas(BVP-09) 3.39 1.15 339.23 20 M/s Y.Mahabaleswarappa & Sons(BVP-07) 1.73 0.59 341.04 21 M/s Bellary Iron Ores Private Limited 6.35 2.16 340.16 22 M/s. Enercon India Ltd [6.0 MW] 46.91 15.95 340.01 23 Prasad Global Solutions I (41) 1.17 0.40 341.88 24 Prasad Global Solutions II (50) 1.09 0.37 339.45 25 Fatehpuria Transformers & Switchgears(Pvt.)Ltd 1.34 0.45 335.82 26 VXL Systems 1.23 0.42 341.46 27 Gangadhar Narasingdas Agarwal I (45) 3.53 1.20 339.94 28 Gangadhar Narasingdas Agarwal II (47) 2.53 0.86 339.92 29 Abhilash Garments&Estates(P)ltd 1.35 0.46 340.74 30 Siddaganga Oil extraction pvt ltd 2.74 0.93 339.42 31 M/s Tecno Rings, Simogga 2.68 0.99 369.40 32 M/s Rajastan Gum Pvt Ltd,Jodpur 11.38 4.21 369.95 33 M/s H.G Rangan Goud ,Hospet 2.62 0.97 370.23 34 M/s MR Pasalkar 2.68 0.99 369.40 35 M/s Sterling Agro Industries Ltd 7.28 2.69 369.51 36 Thuppada Halli 124.41 46.03 369.99 37 Srinivasa Hatcheries Ltd ,Hyderabad 2.98 1.10 369.13 38 Thirupathi Microtec Pvt Ltd 2.53 0.93 367.59 39 Kanna Indutrial Pipes Pvt Ltd 3.89 1.44 370.18 40 Rameshkumar Hanjarimal Rathod 2.37 0.88 371.31 41 Gemscab Industries ltd 1.44 0.49 340.28 NCE-Wind - Mill Projects Total: 288.34 102.89 356.84 MESCOM Ltd.,

Source wise Power Purchase Cost FY 15 (Actuals) Format-D1

Sl. Source MU Amount Avg. No. in Cr. Ps/KWh) NCE-Captive Power 1 M/s Mysore Paper Mill Ltd 1.86 0.48 258.06

NCE-SOLAR POWER 1 M/s Welspun Solar kannada Power Projects Ltd 30.95 25.52 824.56

Other Expenses 1 U.I Charges 27.37 5.94 217.03 2 POSCO Charges to (PCKL bill) 0.00 0.26 0.00 3 Reactive Charges 0.00 0.01 0.00 4 SLDC charges. 0.00 6.10 0.00 5 KPTCL Transmission Charges 0.00 184.41 0.00 6 TANGEDCO Transmission Charges 0.00 0.03 0.00 7 Southern Regions (PGCIL) 0.00 32.20 0.00 8 TBHE 4.76 0.07 14.71 9 Other Non Recurring Bills 0.00 0.54 0.00 10 Energy Balance of the year FY 15 39.34 14.96 380.27 11 Energy Balance of the previous years 0.00 5.21 0.00 Other Expenses Total: 71.47 249.73 612.01

GRAND TOTAL: 4838.62 1658.14 342.69 MESCOM Ltd.,

Source wise Power Purchase Cost FY 16 (Actuals) Format-D1

Sl. Source MU Amount Avg. No. in Cr. Ps/KWh) KPCL-Thermal 1 RTPS I toVII 1127.42 481.09 426.72 2 RTPS VIII 126.43 46.79 370.06 3 BTPS Unit I 218.59 107.25 490.67 4 BTPS Unit II 258.84 122.63 473.75 5 BTPS Unit III 3.40 0.52 151.59 KPCL-Thermal-Total: 1734.68 758.27 1912.79

KPCL-Hydel 1 Sharavathi Hydro Electric Project 96.64 10.51 108.79 2 Kali Nadi Hydro Electric Project 225.46 22.47 99.66 3 Varahi Hydro Electric Project 75.93 13.01 171.29 4 Kadra Power House 18.06 5.40 299.14 5 Kodasalli Power House 16.81 3.35 199.31 6 Gerusoppa Power House 25.05 4.92 196.58 7 Ghataprabha Power House 3.15 1.95 619.01 8 Bhadra Hydro Eletric Project 3.28 2.21 674.34 9 Almatti Power House 12.12 5.40 445.23 10 Varahi Hydro Electric Project (3 &4) 0.00 4.59 0.00 11 VVNL Hydel MGHE 31.12 1.60 51.32 12 VVNL Hydel Shivanasamudra 27.18 2.72 100.13 13 VVNL Hydel Munirabad 6.30 0.55 87.41 14 VVNL Hydel Shimsha 0.00 0.00 0.00 KPCL-Hydel-Total: 541.09 78.69 145.42 MESCOM Ltd.,

Source wise Power Purchase Cost FY 16 (Actuals) Format-D1

CGS 1 NLC I 62.60 22.77 363.77 2 NLC II 171.38 52.15 304.33 3 NLC II Expansion 14.21 6.22 437.66 4 NLC Tamilnadu 55.06 21.30 386.89 5 NTPC Talcher Stage II - Unit-I 31.98 6.40 200.12 6 NTPC - RSTPS (I & II) 255.45 69.96 273.88 7 NTPC-SR - Stage III 69.60 21.74 312.27 8 NTPC-SR - Simhadri 123.76 49.59 400.70 9 M/s NTPC Tamilnadu Energy Ltd 56.02 21.09 376.51 10 NTPC VVNL 53.83 23.91 444.12 11 M/s Kudamkualm Nuclear Power Project Ltd 34.14 14.22 416.45 12 MAPS 17.78 3.73 209.60 13 NPCIL - Kaiga 175.69 54.88 312.36 14 Damodar Valley Corporation 43.99 19.74 448.77 CGS-Total: 1165.50 387.70 332.65

Out Side State Source 1 M/s Jurala Power ,Telangana State. 0.75 4.79 6392.86

Major IPPs 1 M/S UPCL, Padubidri 381.47 159.83 418.99 MESCOM Ltd.,

Source wise Power Purchase Cost FY 16 (Actuals) Format-D1

Short/ Medium Term Power Purchase 1 Medium Term power purchase (1500 MW) 57.14 30.60 535.50 2 Short Term Power Purchase (500 & 250MW) 282.31 143.46 508.18 3 Non PPA with MESCOM(u/s 11) 225.25 113.35 503.23 Short/ Medium-Total: 564.70 287.42 508.97

NCE-Mini Hydel 1 Sandur Power Company 67.57 22.93 339.42 2 Subhash Kabini 39.28 17.41 443.30 3 Sahyadri 0.58 0.19 328.87 4 Master Power 3.88 1.52 391.00 5 Graphite India 3.39 1.50 443.30 6 Maruthi Power Gen I(Kabini) 2.88 1.41 489.00 7 Maruthi Power Gen (Hemavathi) 1.91 0.63 328.43 8 Moodabagil Power Pvt. Ltd., 0.94 0.35 372.33 9 Mrujaara Power Plant 2.22 0.62 279.87 10 Shamili Hydel power project pvt ltd 23.60 6.61 280.00 11 Sagar Power (Dandela) Pvt Ltd 14.95 4.83 323.05 12 Soham Mannapitlu Power Pvt Ltd 25.72 8.24 320.54 13 Sagar Power (Neerukatte) Pvt Ltd 20.33 5.68 279.32 14 AMR Power Pvt Ltd 0.00 0.00 0.00 15 SRM Power 8.11 2.27 280.01 16 Vasagi Power Projects Ltd 0.89 0.30 340.00 17 GVP Infra Projects Pvt Ltd 5.54 1.86 335.27 18 Soham Phalguni 7.74 2.24 290.00 19 Devar Power 4.54 1.27 280.00 20 Bhoruka Power Cor, LTD-9mw 18.64 6.35 340.89 NCE-Mini Hydel-Total: 252.70 86.22 341.20 MESCOM Ltd.,

Source wise Power Purchase Cost FY 16 (Actuals) Format-D1

NCE-Wind - Mill Projects 1 Power Link System Pvt Ltd. 1.08 0.37 339.92 2 Desai Brothers LTD., 1.29 0.44 339.95 3 Dinesh Pouches LTD., 1.24 0.42 339.94 4 Dempo Industries Private LTD., 0.99 0.34 339.91 5 Dewanchand Ramsaran-ELP-38 1.29 0.44 339.89 6 Ghodawat industries-WS -44 7.36 2.50 339.97 7 Lovely Fragrances-ELP- 28 1.29 0.44 339.96 8 Srinivas Sirigeri -EP2-29 1.09 0.37 339.95 9 Steelfabs offshore -ELP -37 1.25 0.42 339.96 10 Ushdev International- EP2-24 2.67 0.91 339.97 11 Mineral Enterprises-1 ELP-39 7.37 2.43 329.03 12 Mineral Enterprises-2 ELP-20 8.53 2.98 349.40 13 M/s VS Lad & Sons (RR.noBVP-04) 1.23 0.42 338.96 14 M/s P Vengannasetty& Brothers(BVP-11) 0.90 0.31 339.96 15 M/s V.T Switchgears&transformers(BVP-10) 0.81 0.28 339.72 16 M/s MSPL Limited Phase-I(BVP-03) 1.44 0.49 339.97 17 M/s MSPL LimitedPhase-II(BVP-06) 4.20 1.43 339.99 18 M/s MSPL Limited Phase-III(BVP-08) 1.79 0.61 339.99 19 M/s .R.B Seth Shreeram, Narasingdas(BVP-09) 3.39 1.15 339.96 20 M/s Y.Mahabaleswarappa & Sons(BVP-07) 1.66 0.56 339.97 21 M/s Bellary Iron Ores Private Limited 5.91 2.01 339.82 22 M/s. Enercon India Ltd [6.0 MW] 45.38 15.43 339.99 23 Prasad Global Solutions I (41) 1.10 0.37 339.88 24 Prasad Global Solutions II (50) 1.04 0.35 339.94 25 Fatehpuria Transformers & Switchgears(Pvt.)Ltd 1.33 0.45 339.91 MESCOM Ltd.,

Source wise Power Purchase Cost FY 16 (Actuals) Format-D1

26 VXL Systems 1.21 0.41 339.90 27 Gangadhar Narasingdas Agarwal I (45) 3.38 1.15 339.96 28 Gangadhar Narasingdas Agarwal II (47) 2.28 0.77 339.96 29 Abhilash Garments&Estates(P)ltd 1.24 0.42 339.86 30 Siddaganga Oil extraction pvt ltd 2.51 0.85 339.95 31 M/s Tecno Rings, Simogga 2.44 0.90 369.95 32 M/s Rajastan Gum Pvt Ltd,Jodpur 9.87 3.65 370.02 33 M/s H.G Rangan Goud ,Hospet 2.50 0.92 369.98 34 M/s MR Pasalkar 2.43 0.90 369.58 35 M/s Sterling Agro Industries Ltd 6.21 2.30 369.62 36 Thuppada Halli 119.47 44.20 370.00 37 Srinivasa Hatcheries Ltd ,Hyderabad 0.89 0.33 369.46 38 Thirupathi Microtec Pvt Ltd 2.29 0.85 369.77 39 Kanna Indutrial Pipes Pvt Ltd 3.49 1.29 369.66 40 Rameshkumar Hanjarimal Rathod 2.29 0.85 369.46 41 Gemscab Industries ltd 1.32 0.45 339.91 NCE-Wind - Mill Projects Total: 269.43 96.15 356.86

NCE-Captive Power 1 M/s Mysore Paper Mill Ltd 2.44 0.63 259.60

NCE-SOLAR POWER 1 M/s Welspun Solar kannada Power Projects Ltd 31.92 26.31 824.25 2 Interocean Shipping India Pvt Ltd 0.19 0.14 738.66 MESCOM Ltd.,

Source wise Power Purchase Cost FY 16 (Actuals) Format-D1

Other Expenses 1 U.I Charges 44.42 13.44 302.57 2 STOA U.I Charges 0.00 0.79 3 POSCO Charges to (PCKL bill) 0.00 0.24 0.00 4 Reactive Charges 0.00 -0.05 0.00 5 SLDC charges. 0.00 1.76 0.00 6 SPPCC O&M exp. & Rev Exp 0.00 0.00 7 KPTCL Transmission Charges 0.00 218.70 0.00 8 TANGEDCO Transmission Charges 0.00 0.03 0.00 9 Southern Regions (PGCIL) 0.00 71.81 0.00 10 TBHE & Other Non Recurring Bills 2.28 5.39 2365.09 11 Other Non Recurring Bills 0.00 0.00 0.00 12 Energy Balance of the year FY 15 36.15 14.87 411.31 13 Energy Balance of the previous years 0.00 17.43 0.00 Other Expenses Total: 82.85 344.41 3078.97

GRAND TOTAL: 5027.72 2230.56 443.65 MESCOM Ltd.,

Source wise Power Purchase Cost FY 17(Actuals) Format-D1

Sl. Amount Avg. Source MU No. in Cr. P.P cost KPCL-Thermal 1 RTPS I toVII 921.20 379.93 4.12 2 RTPS VIII 127.91 62.16 4.86 3 BTPS Unit I 255.53 121.88 4.77 4 BTPS Unit II 186.31 100.36 5.39 5 BTPS Unit III 38.38 3.14 0.82 6 Raichur Power Corporation Ltd 18.96 3.37 1.78 KPCL-Thermal-Total: 1548.29 670.84 4.33

KPCL-Hydel 1 Sharavathi Hydro Electric Project 106.44 4.05 0.38 2 Kali Nadi Hydro Electric Project 124.41 11.56 0.93 3 Varahi Hydro Electric Project 57.23 7.31 1.28 4 Kadra Power House 13.54 2.53 1.87 5 Kodasalli Power House 11.91 1.66 1.39 6 Gerusoppa Power House 21.64 4.17 1.93 7 Ghataprabha Power House 3.83 0.32 0.84 8 Bhadra Hydro Eletric Project 1.89 0.22 1.16 9 Almatti Power House 31.75 4.37 1.38 10 Varahi Hydro Electric Project (3 &4) 0.00 2.78 11 VVNL Hydel MGHE 22.38 1.22 0.55 12 VVNL Hydel Shivanasamudra 13.37 1.38 1.03 13 VVNL Hydel Munirabad 2.47 0.25 1.01 14 VVNL Hydel Shimsha 0.40 0.00 0.00 KPCL-Hydel-Total: 411.26 41.82 1.02 MESCOM Ltd.,

Source wise Power Purchase Cost FY 17(Actuals) Format-D1

Sl. Amount Avg. Source MU No. in Cr. P.P cost CGS 1 NLC I 69.82 28.05 4.02 2 NLC II 211.16 91.62 4.34 3 NLC II Expansion 27.05 14.24 5.26 4 NLC Tamilnadu 113.50 47.99 4.23 5 NTPC Talcher Stage II - Unit-I 215.62 52.83 2.45 6 NTPC - RSTPS (I & II) 257.09 79.89 3.11 7 NTPC-SR - Stage III 78.49 20.87 2.66 8 NTPC-SR - Simhadri 151.58 65.33 4.31 9 M/s NTPC Tamilnadu Energy Ltd 85.89 37.49 4.36 Thermal 39.60 13.54 10 NTPC VVNL 4.82 Solar - NCE 9.62 10.19 11 M/s Kudamkualm Nuclear Power Project Ltd 145.83 48.35 3.32 12 MAPS 18.21 3.95 2.17 13 NPCIL - Kaiga 152.15 48.00 3.15 14 Damodar Valley Corporation 267.47 119.16 4.46 CGS-Total: 1843.08 681.50 3.70

Out Side State Source 1 M/s Jurala Power ,Telangana State. 9.55 4.73 4.95

Major IPPs 1 M/S UPCL, Padubidri 594.03 266.59 4.49 MESCOM Ltd.,

Source wise Power Purchase Cost FY 17(Actuals) Format-D1

Sl. Amount Avg. Source MU No. in Cr. P.P cost Short/ Medium Term Power Purchase 1 Medium Term power purchase (Co-Gen) Non-Solar NCE 16.31 5.65 3.46 Others 297.83 126.06 2 Short Term Power Purchase (500 & 250MW) 4.27 Non-Solar NCE 13.93 7.08 Others 43.23 21.96 3 Non PPA with MESCOM(u/s 11) 5.08 Non-Solar NCE 14.65 7.44 Short/ Medium-Total: 385.95 168.19 4.36

NCE-Mini Hydel 1 Sandur Power Company 59.21 21.87 3.69 2 Subhash Kabini 28.99 12.85 4.43 3 Sahyadri 0.61 0.20 3.28 4 Master Power 3.12 1.22 3.91 5 Graphite India 0.88 0.39 4.43 6 Maruthi Power Gen I(Kabini) 1.20 0.59 4.92 7 Maruthi Power Gen (Hemavathi) 0.05 -0.01 -2.00 8 Moodabagil Power Pvt. Ltd., 0.62 0.23 3.71 9 Mrujaara Power Plant 1.32 0.37 2.80 10 Shamili Hydel power project pvt ltd 19.77 5.54 2.80 11 Sagar Power (Dandela) Pvt Ltd 13.56 4.45 3.28 12 Soham Mannapitlu Power Pvt Ltd 26.70 8.71 3.26 13 Sagar Power (Neerukatte) Pvt Ltd 15.56 4.36 2.80 15 SRM Power 7.85 2.20 2.80 16 Vasagi Power Projects Ltd 0.80 0.27 3.38 17 GVP Infra Projects Pvt Ltd 7.44 2.53 3.40 18 Soham Phalguni 16.70 4.93 2.95 19 Devar Power 6.07 1.70 2.80 20 Bhoruka Power Cor, LTD-9mw 16.93 5.79 3.42 21 Infirm & Banked Energy 0.41 0.14 3.41 NCE-Mini Hydel-Total: Non-Solar NCE 227.79 78.33 3.44 MESCOM Ltd.,

Source wise Power Purchase Cost FY 17(Actuals) Format-D1

Sl. Amount Avg. Source MU No. in Cr. P.P cost NCE-Wind - Mill Projects 1 Power Link System Pvt Ltd. 1.17 0.40 3.42 2 Desai Brothers LTD., 1.51 0.51 3.38 3 Dinesh Pouches LTD., 1.31 0.45 3.44 4 Dempo Industries Private LTD., 0.50 0.17 3.40 5 Dewanchand Ramsaran-ELP-38 1.41 0.48 3.40 6 Ghodawat industries-WS -44 3.15 1.07 3.40 7 Lovely Fragrances-ELP- 28 1.40 0.47 3.36 8 Srinivas Sirigeri -EP2-29 1.09 0.37 3.39 9 Steelfabs offshore -ELP -37 1.08 0.37 3.43 10 Ushdev International- EP2-24 2.40 0.82 3.42 11 Mineral Enterprises-1 ELP-39 6.76 2.30 3.40 12 Mineral Enterprises-2 ELP-20 7.62 2.59 3.40 13 M/s VS Lad & Sons (RR.noBVP-04) 1.61 0.54 3.35 14 M/s P Vengannasetty& Brothers(BVP-11) 1.00 0.34 3.40 15 M/s V.T Switchgears&transformers(BVP-10) 0.99 0.33 3.33 16 M/s MSPL Limited Phase-I(BVP-03) 1.71 0.58 3.39 17 M/s MSPL LimitedPhase-II(BVP-06) 5.18 1.76 3.40 18 M/s MSPL Limited Phase-III(BVP-08) 2.04 0.70 3.43 19 M/s .R.B Seth Shreeram, Narasingdas(BVP-09) 3.80 1.29 3.39 20 M/s Y.Mahabaleswarappa & Sons(BVP-07) 1.89 0.64 3.39 21 M/s Bellary Iron Ores Private Limited 6.82 2.32 3.40 22 M/s. Enercon India Ltd [6.0 MW] 40.98 13.94 3.40 23 Prasad Global Solutions I (41) 1.06 0.36 3.40 24 Prasad Global Solutions II (50) 1.12 0.38 3.39 25 Fatehpuria Transformers & Switchgears(Pvt.)Ltd 1.27 0.43 3.39 MESCOM Ltd.,

Source wise Power Purchase Cost FY 17(Actuals) Format-D1

Sl. Amount Avg. Source MU No. in Cr. P.P cost 26 VXL Systems 1.11 0.38 3.42 27 Gangadhar Narasingdas Agarwal I (45) 2.77 0.94 3.39 28 Gangadhar Narasingdas Agarwal II (47) 1.22 0.41 3.36 29 Abhilash Garments&Estates(P)ltd 1.42 0.48 3.38 30 Siddaganga Oil extraction pvt ltd 1.64 0.56 3.41 31 M/s Tecno Rings, Simogga 2.76 1.02 3.70 32 M/s Rajastan Gum Pvt Ltd,Jodpur 11.66 4.31 3.70 33 M/s H.G Rangan Goud ,Hospet 2.69 0.99 3.68 34 M/s MR Pasalkar 2.75 1.02 3.71 35 M/s Sterling Agro Industries Ltd 7.02 2.59 3.69 36 Thuppada Halli 137.24 50.78 3.70 37 Srinivasa Hatcheries Ltd ,Hyderabad 2.97 1.10 3.70 38 Thirupathi Microtec Pvt Ltd 2.64 0.98 3.71 39 Kanna Indutrial Pipes Pvt Ltd 4.06 1.48 3.65 40 Rameshkumar Hanjarimal Rathod 2.65 0.98 3.70 41 Gemscab Industries ltd 0.75 0.25 3.33 NCE-Wind - Mill Projects Total: Non-Solar NCE 284.22 101.88 3.58

NCE-SOLAR POWER 1 M/s Welspun Solar kannada Power Projects Ltd 30.93 25.49 8.24 2 M/s Interocean Shipping (india) Pvt.Ltd 4.98 3.68 7.39 3 M/s Sharda Consurction & Corporation Pvt Ltd 6.02 4.61 7.66 4 K.K. Rao Green Energy Pvt Ltd 4.23 2.75 6.50 5 Bhoruka power coporaton ltd 22.76 15.37 6.75 6 Deepa Solar Power Generation Pvt Ltd 0.23 0.19 8.26 7 Vedasri Green Energy Pvt Ltd 0.97 0.77 7.94 8 Vedanga Solar Energy Pvt Ltd 1.51 1.27 8.41 9 Celestial Solar Solutions Pvt. Ltd 2.61 1.60 6.13 10 Infirm Energy(NMPT) 0.67 0.24 3.58 NCE-Solar Projects Total: Solar - NCE 74.91 55.97 7.47 MESCOM Ltd.,

Source wise Power Purchase Cost FY 17(Actuals) Format-D1

Sl. Amount Avg. Source MU No. in Cr. P.P cost Other Expenses 1 U.I Charges 45.39 12.59 2.77 3 POSCO Charges to (PCKL bill) 0.00 0.25 4 Reactive Charges 0.00 -0.06 5 SLDC charges. 0.00 1.64 7 KPTCL Transmission Charges 0.00 248.38 8 TANGEDCO Transmission Charges 0.00 0.05 9 Southern Regions (PGCIL) 0.00 111.71 11 TBHE Non-Solar NCE 1.07 0.38 3.55 12 Other Non Recurring Bills 0.00 4.07 Others 2.54 0.91 10 Unscheduled Energy 3.57 Non-Solar NCE 7.62 2.72 11 Energy Balancing 2016-17 233.14 89.22 3.83 Other Expenses Total: 289.76 471.86 16.28

GRAND TOTAL: 5668.84 2541.71 4.48 MESCOM Ltd.,

Source wise Power Purchase Cost FY-19 (Projections) Format-D1

Sl. Sources Scheduled Energy Fixed Variable Variable Variable Incentive Total Average No. energy / Charges Charges Charges Charges / Power Cost design FEC / FEC / Purchase energy Royalty Royalty Cost (in MU) (in MU) (Rs.in Cr) (Ps./KWh) (Ps./KWh) (Rs.in Cr) (Rs.in Cr) (Rs.in Cr) (Ps./KWh) MESCOM MESCOM MESCOM (5+8+9) 1 2 3 4 5 6 7 8 9 10 11 A KPCL- Hydel Sharavathy Valley projects 1 Sharavathi 144.05 155.74 - 47.86 4.00 7.52 0.11 7.63 48.99 2 Linganamakki - - - 47.86 4.00 - - - - 3 Chakra - - - 47.86 4.00 - - - - Sub-Total (1 to 3): 144.05 155.74 - 7.52 0.11 7.63 48.99 Kali Valley projects 4 Kalinadi(Nagajari) 165.08 183.47 - 88.76 4.00 15.39 0.26 15.65 85.30 5 Supa - - - 88.76 4.00 - - - - Sub-Total (4 to 5): 165.08 183.47 - 15.39 0.26 15.65 85.30 Varahi Valley projects 6 Varahi 1 &2 68.05 82.92 - 140.29 4.00 9.88 0.18 10.06 121.32 7 Mani Dam - - - 146.64 4.00 - - - - Sub-Total (6 to 7): 68.05 82.92 - 9.88 0.18 10.06 121.32 9 Varahi 3 &4 68.05 68.05 - - 46.64 3.17 - 3.17 46.58 10 Bhadra & Bhadra Right Bank 4.05 4.20 - 440.48 4.00 1.80 0.01 1.81 430.95 11 Ghataprabha(GDPH) 6.81 6.04 - 169.66 10.00 1.22 - 1.22 201.99 12 Mallapur & Others - - - 116.00 - - - - - 13 Kadra Dam 33.67 19.85 - 132.22 4.00 4.53 - 4.53 228.21 14 Kodasalli Dam 29.87 22.64 - 117.89 4.00 3.61 - 3.61 159.45 15 Gerusoppa/STRP 35.49 41.20 - 181.40 4.00 6.60 0.09 6.69 162.38 MESCOM Ltd.,

Source wise Power Purchase Cost FY-19 (Projections) Format-D1

B KPCL- Thermal 22 RTPS -1 & 7 872.44 872.44 88.73 - 299.57 261.36 - 350.09 401.28 23 RTPS 8 - 121.50 18.50 - 293.37 35.64 - 54.14 445.60 24 BTPS ------25 Unit I - 259.82 24.86 - 327.71 85.15 - 110.01 423.41 26 Unit II - 264.03 38.05 - 292.47 77.22 - 115.27 436.58 27 Unit III - 94.38 20.39 - 285.27 26.92 - 47.31 501.27 28 Yermarus TPS - 1 & 2 ------TOTAL-KPCL- Thermal (22 to 28): 872.44 1,612.17 190.53 486.29 - 676.82 419.82 TOTAL-KPCL (A+B): 1,493.31 2,216.91 190.53 550.00 0.90 741.43 334.44 MESCOM Ltd.,

Source wise Power Purchase Cost FY-19 (Projections) Format-D1

Sl. Sources Scheduled Energy Fixed Variable Variable Variable Incentive Total Average No. energy / Charges Charges Charges Charges / Power Cost design FEC / FEC / Purchase energy Royalty Royalty Cost (in MU) (in MU) (Rs.in Cr) (Ps./KWh) (Ps./KWh) (Rs.in Cr) (Rs.in Cr) (Rs.in Cr) (Ps./KWh) MESCOM MESCOM MESCOM (5+8+9) 1 2 3 4 5 6 7 8 9 10 11 C Central Projects 29 N.T.P.C-RSTP-I&II 209.32 204.18 15.19 227.93 - 47.71 - 62.90 308.06 30 NTPC-III 52.84 51.54 4.06 222.07 - 11.73 - 15.79 306.36 31 NTPC-Talcher 207.92 200.73 14.81 215.70 - 44.85 - 59.66 297.22 32 NLC TPS2-Stage 1 64.82 63.07 5.78 274.30 - 17.78 - 23.56 373.55 33 NLC TPS2-Stage 2 89.92 87.49 8.09 274.30 - 24.67 - 32.76 374.44 34 NLC TPS1-Expn 55.93 54.42 5.74 255.10 - 14.27 - 20.01 367.70 35 NLC II expansion I 57.32 55.77 15.13 251.50 - 14.42 - 29.55 529.85 36 MAPS 14.57 14.25 - 217.67 - 3.17 - 3.17 222.46 37 Kaiga Unit 1&2 74.62 72.61 - 314.06 - 23.44 - 23.44 322.82 38 Kaiga Unit 3 &4 74.12 72.12 - 314.06 - 23.28 - 23.28 322.80 39 Simhadri Unit -1 &2 110.82 108.10 17.79 275.47 - 30.53 - 48.32 446.99 40 Vallur TPS Stage I &2 &3 80.66 78.88 17.26 278.53 - 22.47 - 39.73 503.68 41 NTPL 110.30 107.05 19.29 316.03 - 34.86 - 54.15 505.84 42 KudamKulam 88.74 86.12 - 409.16 - 36.31 - 36.31 421.62 43 Kudgi Unit 155.53 151.71 28.93 351.17 - 54.62 - 83.55 550.72 44 Damodhar valley Corp.- Meja thermal Power Station 119.41 116.75 16.34 228.60 - 27.30 - 43.64 373.79 45 Damodhar valley Corp.- Kodemma thermal Power Station 149.26 145.93 23.57 185.23 - 27.65 - 51.22 350.99 46 POSOCO charges - - 0.18 - - - - 0.18 - 47 PGCIL Transmission Charges - - 141.94 - - - - 141.94 - TOTAL-Central Projects (29 to 47): 1,716.10 1,670.72 334.10 459.06 - 793.16 474.74 MESCOM Ltd.,

Source wise Power Purchase Cost FY-19 (Projections) Format-D1

E NCE Old projects 49 Co-generation ------50 Biomass ------51 Mini Hydel - 227.80 - - 343.85 78.33 - 78.33 343.85 52 Wind mill - 284.20 - - 358.48 101.88 - 101.88 358.48 53 KPCL wind mill ------54 Solar - 74.91 - - 747.16 55.97 - 55.97 747.16 KPCL Solar ------NTPC Bundled Power Coal - 39.60 - - 341.92 13.54 - 13.54 341.92 55 NTPC Bundled Power Solar - 9.62 - - 1,059.25 10.19 - 10.19 1,059.25 55 Wind MOA ------Sub-Total (49 to 55): - 636.13 - 259.91 - 259.91 408.58 New projects 56 Co-generation ------57 Biomass ------58 Mini Hydel ------59 Wind mill ------60 Solar Park ------61 Solar - 33.29 - - 468.91 15.61 - 15.61 468.91 NTPC Bundled Power Coal 176.25 300.00 52.88 - 52.88 300.03 62 NTPC Bundled Power Solar - 108.94 - - 480.08 52.30 - 52.30 480.08 Sub-Total (56 to 62): - 318.48 - 120.79 - 120.79 379.27 TOTAL-NCE: - 954.61 - 380.70 - 380.70 398.80 MESCOM Ltd.,

Source wise Power Purchase Cost FY-19 (Projections) Format-D1

F Medium/short Term PP 65 Short Term - 79.24 - - 408.00 32.33 - 32.33 408.00 66 Global energy Private Limited ------67 Medium term procurement - 77.84 - - 482.42 37.55 - 37.55 482.40 TOTAL-Medium/Short term(65 to 67): - 157.08 - 69.88 - 69.88 444.87

G Allocation from /(to) other ESCOMs - 174.35 - - 394.55 68.79 - 68.79 394.55

GRAND TOTAL: 3,209.41 5,782.67 624.72 1,709.54 0.90 2,335.16 403.82

KPTCL Tr. Charges 216.20 SLDC Charges 1.94 TOTAL: 2,553.30 MESCOM Ltd.,

Source wise Power Purchase Cost FY-19 (Projections) Format-D1

Sl. Sources Scheduled Energy Fixed Variable Variable Variable Incentive Total Average No. energy / Charges Charges Charges Charges / Power Cost design FEC / FEC / Purchase energy Royalty Royalty Cost (in MU) (in MU) (Rs.in Cr) (Ps./KWh) (Ps./KWh) (Rs.in Cr) (Rs.in Cr) (Rs.in Cr) (Ps./KWh) MESCOM MESCOM MESCOM (5+8+9) 1 2 3 4 5 6 7 8 9 10 11 C Central Projects 29 N.T.P.C-RSTP-I&II 209.32 204.18 15.19 227.93 - 47.71 - 62.90 308.06 30 NTPC-III 52.84 51.54 4.06 222.07 - 11.73 - 15.79 306.36 31 NTPC-Talcher 207.92 200.73 14.81 215.70 - 44.85 - 59.66 297.22 32 NLC TPS2-Stage 1 64.82 63.07 5.78 274.30 - 17.78 - 23.56 373.55 33 NLC TPS2-Stage 2 89.92 87.49 8.09 274.30 - 24.67 - 32.76 374.44 34 NLC TPS1-Expn 55.93 54.42 5.74 255.10 - 14.27 - 20.01 367.70 35 NLC II expansion I 57.32 55.77 15.13 251.50 - 14.42 - 29.55 529.85 36 MAPS 14.57 14.25 - 217.67 - 3.17 - 3.17 222.46 37 Kaiga Unit 1&2 74.62 72.61 - 314.06 - 23.44 - 23.44 322.82 38 Kaiga Unit 3 &4 74.12 72.12 - 314.06 - 23.28 - 23.28 322.80 39 Simhadri Unit -1 &2 110.82 108.10 17.79 275.47 - 30.53 - 48.32 446.99 40 Vallur TPS Stage I &2 &3 80.66 78.88 17.26 278.53 - 22.47 - 39.73 503.68 41 NTPL 110.30 107.05 19.29 316.03 - 34.86 - 54.15 505.84 42 KudamKulam 88.74 86.12 - 409.16 - 36.31 - 36.31 421.62 43 Kudgi Unit 155.53 151.71 28.93 351.17 - 54.62 - 83.55 550.72 44 Damodhar valley Corp.- Meja thermal Power Station 119.41 116.75 16.34 228.60 - 27.30 - 43.64 373.79 45 Damodhar valley Corp.- Kodemma thermal Power Station 149.26 145.93 23.57 185.23 - 27.65 - 51.22 350.99 46 POSOCO charges - - 0.18 - - - - 0.18 - 47 PGCIL Transmission Charges - - 141.94 - - - - 141.94 - TOTAL-Central Projects (29 to 47): 1,716.10 1,670.72 334.10 459.06 - 793.16 474.74 MESCOM Ltd.,

Source wise Power Purchase Cost FY-19 (Projections) Format-D1

G Allocation from /(to) other ESCOMs - 357.90 - - 394.55 141.21 - 141.21 394.55

GRAND TOTAL: 3,209.41 5,966.22 624.72 1,781.96 0.90 2,407.58 403.54

KPTCL Tr. Charges 251.83 SLDC Charges 2.02 TOTAL: 2,661.43 MESCOM Ltd.

Revenue From sale of power Form-D2 FY-12 FY-13 (ACTUALS) (ACTUALS) Sl. Tariff Category Instal. Energy Revenue Avg. Instal. Energy Revenue Avg. No. Category Descirption (No.s) Sales (Crs) Real. (No.s) Sales (Crs) Real. (Mus) Pr Act [Ps/Unit] (Mus) Pr Act [Ps/Unit] BJ/KJ: =<18 / 40 units 122911 16.35 7.20 440 136147 15.33 7.20 470 1 LT-1 BJ/KJ: >18 / 40 units 57649 25.03 8.31 332 44640 24.70 8.15 330 2 LT-2 (a) Domestic / AEH 1218299 987.15 352.16 357 1272892 1059.33 406.31 384 3 LT-2 (b) Private Educational Institutions 2798 8.83 5.69 644 2915 9.47 3.59 379 4 LT-3 Commercial 159818 259.75 183.38 706 167139 271.44 198.98 733 5 LT-4 (a) IP sets - Less than 10 HP - General 218349 1058.95 322.88 305 238638 1060.21 335.33 316 6 LT-4 (b) Irrigation Pump sets - More than 10 HP 167 1.83 0.41 224 176 1.08 0.43 398 7 LT-4 (c) Private Horticulture Nurseries, Coffee & Tea Plantations2212 6.09 1.74 286 2651 6.50 2.26 348 8 LT-5 Industries 21310 135.47 71.21 526 22798 130.99 73.33 560 9 LT-6 Water Supply 10010 88.45 38.45 435 10622 97.46 34.21 351 10 LT-6 Street Lights 13196 53.60 24.38 455 14808 57.49 27.51 479 11 LT-7 Temporary Power Supply 8964 20.15 22.20 1102 10534 27.22 30.58 1123 LT Total 1835683 2661.65 1038.01 390 1923960 2761.22 1127.88 408 1 HT-1 Water Supply 57 77.64 33.47 431 55 77.74 32.97 424 2 HT-2 (a) Industries 554 581.97 326.33 561 624 628.48 369.90 589 3 HT-2 (b) Commercial 541 203.05 142.19 700 592 225.81 165.00 731 HT-2 (c) Hospitals / educational instituitions 4 HT-3(a) Irrigation & LI Societies 9 12.99 1.88 145 13 19.24 2.88 150 5 HT-3 (b) Irrigation & LI Societies 2 0.23 0.10 435 2 0.16 0.05 313 6 HT-4 Residential Aparments 62 19.65 9.32 474 64 17.09 8.64 506 7 HT-5 Temporary Power Supply 0 0.00 0.00 0 7 3.42 2.25 658 8 SUPPLY TO MSEZ HT Total 1225 895.53 513.29 573 1357 971.94 581.69 598 Total 1836908 3557.18 1551.30 436 1925317 3733.16 1709.57 458 KPC/ Wheeled 94.99 38.72 Gr Total 1836908 3652.17 1551.30 1925317 3771.88 1709.57 II Wheeling charges recovery 0.00 0.00 III Reconnection Fee 0.15 0.01 IV 0.00 0.00 V Service connection charges 5.46 5.38 VI Delayed payment charges 23.73 33.82 VII Other receipts 2.57 2.43 Gross Revenue from Sale of Power (I to VII) 1583.21 1751.21 LESS: 0.00 0.00 VIII Withdrawal of Revenue Demand -0.82 -2.50 IX Prompt Payment Incentive 0.00 0.00 Waival of interest from IP consumers as per GO 0.00 0.00 GRAND TOTAL 1582.39 1748.71 MESCOM Ltd.

Revenue From sale of power Form-D2 Form-D2 FY-14 FY-15 (ACTUALS) (As per Audited Accounts) Sl. Tariff Category Instal. Energy Revenue Avg. Instal. Energy Revenue Avg. No. Category Descirption (No.s) Sales (Crs) Real. (No.s) Sales (Crs) Real. (Mus) Pr Act [Ps/Unit] (Mus) Pr Act [Ps/Unit] BJ/KJ: =<18 / 40 units 131011 12.34 7.26 588.33 141293 13.30 8.62 648 1 LT-1 BJ/KJ: >18 / 40 units 52027 29.16 9.39 322.02 54050 29.00 9.79 338 2 LT-2 (a) Domestic / AEH 1319610 1129.00 450.21 398.77 1361735 1192.90 515.25 432 3 LT-2 (b) Private Educational Institutions 3010 10.71 7.28 680 3122 11.47 8.31 725 4 LT-3 Commercial 174395 280.90 213.44 760 182284 304.69 239.91 787 5 LT-4 (a) IP sets - Less than 10 HP - General 247139.00 1122.68 365.31 325 260399 1086.18 422.13 389 6 LT-4 (b) Irrigation Pump sets - More than 10 HP 183 1.12 0.36 321 181 1.21 0.45 372 7 LT-4 (c) Private Horticulture Nurseries, Coffee & Tea Plantations2647 6.53 2.17 332 2963 5.97 2.90 486 8 LT-5 Industries 24199 128.82 75.71 588 25894 131.43 81.76 622 9 LT-6 Water Supply 11395 100.38 39.09 389 12182 107.63 42.38 394 10 LT-6 Street Lights 15632 57.26 28.43 497 16135 58.19 31.95 549 11 LT-7 Temporary Power Supply 11988 18.05 22.14 1227 12802 19.12 24.46 1279 LT Total 1993236 2896.95 1220.79 421 2073040 2961.09 1387.91 469 1 HT-1 Water Supply 62 78.20 34.16 437 70 83.35 37.45 449 2 HT-2 (a) Industries 623 686.45 422.12 615 661 704.86 460.19 653 3 HT-2 (b) Commercial 521 163.05 118.72 728 539 153.86 124.66 810 HT-2 (c) Hospitals / educational instituitions 202 107.08 78.39 732 227 146.65 101.55 692 4 HT-3(a) Irrigation & LI Societies 12 24.66 4.43 180 21 22.97 4.29 187 5 HT-3 (b) Irrigation & LI Societies 4 0.32 0.12 375 3 0.25 0.11 440 6 HT-4 Residential Aparments 46 14.27 7.53 528 44 14.40 8.18 568 7 HT-5 Temporary Power Supply 20 21.86 20.79 951 20 7.20 7.24 1006 8 SUPPLY TO MSEZ 8.64 6.83 791 HT Total 1490 1095.89 686.26 626 1585 1142.18 750.50 657 Total 1994726 3992.84 1907.05 478 2074625 4103.27 2138.41 521 KPC/ Wheeled 44.72 42.91 Gr Total 1994726 4037.56 1907.05 2074625 4146.18 2138.41 II Wheeling charges recovery 0.00 0.01 III Reconnection Fee 0.00 0.00 IV 0.07 0.00 V Service connection charges 7.27 8.65 VI Delayed payment charges 36.45 42.40 VII Other receipts 2.48 2.14 Gross Revenue from Sale of Power (I to VII) 1953.32 2074625 4146.18 2191.61 LESS: 0.00 0.00 VIII Withdrawal of Revenue Demand -0.55 -0.27 IX Prompt Payment Incentive 0.00 0.00 Waival of interest from IP consumers as per GO 0.00 0.00 GRAND TOTAL 1952.77 2074625 4146.18 2191.34 529 MESCOM Ltd.

Revenue From sale of power Form-D2 FY-16 AS PER AUDITED ACCOUNTS Sl. Tariff Category Instal. Energy Revenue Avg. No. Category Descirption (No.s) Sales (Crs) Real. (Mus) Pr Act [Ps/Unit] BJ/KJ: =<18 / 40 units 139044 13.78 9.25 671 1 LT-1 BJ/KJ: >18 / 40 units 56589 27.86 9.59 344 2 LT-2 (a) Domestic / AEH 1405975 1264.70 563.40 445 3 LT-2 (b) Private Educational Institutions 3210 13.68 9.12 667 4 LT-3 Commercial 190104 329.87 264.63 802 5 LT-4 (a) IP sets - Less than 10 HP - General 278171 1197.43 501.77 419 6 LT-4 (b) Irrigation Pump sets - More than 10 HP 179 0.92 0.56 609 7 LT-4 (c) Private Horticulture Nurseries, Coffee & Tea Plantations3296 6.40 3.03 473 8 LT-5 Industries 27859 135.47 88.52 653 9 LT-6 Water Supply 12630 111.93 46.50 415 10 LT-6 Street Lights 17263 63.97 36.07 564 11 LT-7 Temporary Power Supply 16506 19.63 24.79 1263 LT Total 2150826 3185.64 1557.23 489 1 HT-1 Water Supply 78 85.01 38.76 456 2 HT-2 (a) Industries 725 586.43 410.53 700 3 HT-2 (b) Commercial 577 180.07 147.82 821 HT-2 (c) Hospitals / educational instituitions 250 155.05 111.08 716 4 HT-3(a) Irrigation & LI Societies 21 8.31 2.37 285 5 HT-3 (b) Irrigation & LI Societies 3 0.29 0.12 414 6 HT-4 Residential Aparments 46 16.90 10.15 601 7 HT-5 Temporary Power Supply 20 8.98 9.53 1061 8 SUPPLY TO MSEZ 13.86 7.28 525 HT Total 1720 1054.90 737.64 699 Total 2152546 4240.54 2294.87 541 KPC/ Wheeled 68.63 Gr Total 2152546 4309.17 2294.87 II Wheeling charges recovery 0.00 III Reconnection Fee 0.00 IV 0.00 V Service connection charges 5.58 VI Delayed payment charges 48.56 VII Other receipts 15.67 Gross Revenue from Sale of Power (I to VII) 2152546 4309.17 2364.68 LESS: 0.00 VIII Withdrawal of Revenue Demand -1.46 IX Prompt Payment Incentive 0.00 Waival of interest from IP consumers as per GO 0.00 GRAND TOTAL 2152546 4309.17 2363.22 557 MESCOM Ltd.

Revenue From sale of power Form-D2 FY-17 FY-17 (As Approved in TO-2016) FY-17 (As per Audited Accounts) Sl. Tariff Category Instal. Energy Revenue Avg. Instal. Energy Revenue Avg. No. Category Descirption (No.s) Sales (Crs) Real. (No.s) Sales (Crs) Real. (Mus) Pr Act [Ps/Unit] (Mus) Pr Act [Ps/Unit] BJ/KJ: =<18 / 40 units 155065 14.59 8.77 601 143049 13.93 10.27 737 1 LT-1 BJ/KJ: >18 / 40 units 57375 30.79 11.52 374 50323 27.03 10.25 379 2 LT-2 (a) Domestic / AEH 1459522 1353.46 664.18 491 1452443 1292.24 638.14 494 3 LT-2 (b) Private Educational Institutions 3359 12.94 9.20 711 3352 13.82 9.97 721 4 LT-3 Commercial 198949 341.71 279.35 818 197670 342.31 289.84 847 5 LT-4 (a) IP sets - Less than 10 HP - General 292860 1217.69 575.97 473 291129 1628.06 775.58 476 6 LT-4 (b) Irrigation Pump sets - More than 10 HP 186 0.89 0.46 517 245 1.21 0.63 521 7 LT-4 (c) Private Horticulture Nurseries, Coffee & Tea Plantations3462 4.81 2.66 553 3673 8.35 4.05 485 8 LT-5 Industries 29515 135.88 97.45 717 28793 136.78 93.18 681 9 LT-6 Water Supply 13550 118.39 50.25 424 13680 120.53 55.52 461 10 LT-6 Street Lights 17728 63.10 37.04 587 19676 69.38 48.78 703 11 LT-7 Temporary Power Supply 12802 19.12 27.96 1462 14153 19.40 27.15 1399 LT Total 2244373 3313.37 1764.81 533 2218186 3673.04 1963.36 535 1 HT-1 Water Supply 80 87.38 43.20 494 88 86.42 44.13 511 2 HT-2 (a) Industries 771 805.52 583.21 724 784 548.29 433.52 791 3 HT-2 (b) Commercial 577 168.53 148.41 881 624 186.06 163.99 881 HT-2 (c) Hospitals / educational instituitions 277 180.37 131.75 730 264 154.85 113.24 731 4 HT-3(a) Irrigation & LI Societies 21 22.91 4.58 200 23 15.71 4.47 285 5 HT-3 (b) Irrigation & LI Societies 3 0.32 0.13 406 3 0.32 0.13 406 6 HT-4 Residential Aparments 47 15.56 9.69 623 52 18.82 11.91 633 7 HT-5 Temporary Power Supply 20 7.20 7.72 1072 16 5.50 6.82 1240 8 SUPPLY TO MSEZ 83.38 45.32 544 18.31 10.31 563 HT Total 1796 1371.17 974.01 710 1854 1034.28 788.52 762 Total 2246169 4684.54 2738.82 585 2220040 4707.32 2751.88 585 KPC/ Wheeled 10.68 87.10 Gr Total 2246169 4695.22 2738.82 583 2220040 4794.42 2751.88 574 II Wheeling charges recovery 0.00 0.00 III Reconnection Fee 0.00 0.00 IV 0.00 0.00 V Service connection charges 5.58 8.39 VI Delayed payment charges 48.56 30.12 VII Other receipts 27.76 20.28 Gross Revenue from Sale of Power (I to VII) 2246169 4695.22 2820.72 601 2220040 4794.42 2810.67 586 LESS: 0.00 0.00 VIII Withdrawal of Revenue Demand -1.46 -0.76 IX Prompt Payment Incentive 0.00 0.00 Waival of interest from IP consumers as per GO 0.00 0.00 GRAND TOTAL 2246169 4695.22 2819.26 602 2220040 4794.42 2809.91 597 MESCOM Ltd.

Revenue From sale of power Form-D2 Form-D2

FY-18 (As Approved in Tariff Order 2017) FY-18 (Revised Projections) Sl. Tariff Category Instal. Energy Revenue Avg. Instal. Energy Revenue Avg. No. Category Descirption (No.s) Sales (Crs) Real. (No.s) Sales (Crs) Real. (Mus) Pr Act [Ps/Unit] (Mus) Pr Act [Ps/Unit] BJ/KJ: =<18 / 40 units 209118 44.92 29.24 651 193372 41.29 26.88 651 1 LT-1 BJ/KJ: >18 / 40 units 2 LT-2 (a) Domestic / AEH 1509300 1420.25 780.33 549 1501266 1345.05 725.81 540 3 LT-2 (b) Private Educational Institutions 3435 17.48 12.46 713 3471 15.18 11.52 759 4 LT-3 Commercial 206424 375.65 329.57 877 206147 355.33 318.09 895 5 LT-4 (a) IP sets - Less than 10 HP - General 313084 1352.32 704.56 521 304087 1702.32 886.91 521 6 LT-4 (b) Irrigation Pump sets - More than 10 HP 182 0.93 0.47 505 266 1.21 0.69 570 7 LT-4 (c) Private Horticulture Nurseries, Coffee & Tea Plantations3727 7.24 4.31 595 3990 8.99 4.72 525 8 LT-5 Industries 31712 140.55 109.73 781 29784 139.91 102.04 729 9 LT-6 Water Supply 14175 122.75 57.34 467 14573 127.11 60.48 476 10 LT-6 Street Lights 19284 69.70 43.90 630 21124 72.72 45.14 621 11 LT-7 Temporary Power Supply 16506 19.63 32.38 1650 14153 19.40 36.50 1881 LT Total 2326947 3571.42 2104.29 589 2292233 3828.51 2218.78 580 1 HT-1 Water Supply 91 88.26 47.90 543 99 87.99 47.33 538 2 HT-2 (a) Industries 829 614.81 478.91 779 842 548.29 433.45 791 3 HT-2 (b) Commercial 638 196.74 181.68 923 660 192.26 178.28 927 HT-2 (c) Hospitals / educational instituitions 309 204.44 159.77 782 264 154.85 122.13 789 4 HT-3(a) Irrigation & LI Societies 29 10.90 2.46 226 23 15.71 5.41 344 5 HT-3 (b) Irrigation & LI Societies 3 0.36 0.15 417 3 0.32 0.14 438 6 HT-4 Residential Aparments 46 18.78 12.66 674 57 20.32 13.92 685 7 HT-5 Temporary Power Supply 20 8.99 10.63 1182 16 5.50 7.09 1289 8 SUPPLY TO MSEZ 0 85.33 49.49 580 0 18.31 10.62 580 HT Total 1965 1228.61 943.65 768 1964 1043.55 818.37 784 Total 2328912 4800.03 3047.94 635 2294197 4872.06 3037.15 623 KPC/ Wheeled 9.49 87.10 Gr Total 2328912 4809.52 3047.94 2294197 4959.16 3037.15 II Wheeling charges recovery 0.00 0.00 III Reconnection Fee 0.00 0.00 IV 0.00 0.00 V Service connection charges 5.58 8.39 VI Delayed payment charges 48.56 30.12 VII Other receipts 22.24 20.28 Gross Revenue from Sale of Power (I to VII) 2328912 4809.52 3124.32 2294197 4959.16 3095.94 LESS: 0.00 0.00 VIII Withdrawal of Revenue Demand -1.45 -0.76 IX Prompt Payment Incentive 0.00 0.00 Waival of interest from IP consumers as per GO 0.00 0.00 GRAND TOTAL 2328912 4809.52 3122.87 651 2294197 4959.16 3095.18 635 MESCOM Ltd.

Revenue From sale of power Form-D2 Form-D2

FY-19 (Revised Projections) FY-19 (Revised Projections @ Prpoposed Tariff) Sl. Tariff Category Instal. Energy Revenue Avg. Instal. Energy Revenue Avg. No. Category Descirption (No.s) Sales (Crs) Real. (No.s) Sales (Crs) Real. (Mus) Pr Act [Ps/Unit] (Mus) Pr Act [Ps/Unit] BJ/KJ: =<18 / 40 units 193372 41.62 27.09 651 193372 41.62 31.55 758 1 LT-1 BJ/KJ: >18 / 40 units 2 LT-2 (a) Domestic / AEH 1551766 1400.07 754.66 539 1551766 1400.07 912.97 652 3 LT-2 (b) Private Educational Institutions 3595 16.67 12.58 755 3595 16.67 14.70 882 4 LT-3 Commercial 214988 368.86 330.22 895 214988 368.86 358.27 971 5 LT-4 (a) IP sets - Less than 10 HP - General 317045 1776.44 925.53 521 317045 1776.44 1216.86 685 6 LT-4 (b) Irrigation Pump sets - More than 10 HP 289 1.21 0.71 587 289 1.21 0.92 760 7 LT-4 (c) Private Horticulture Nurseries, Coffee & Tea Plantations4336 9.69 5.06 522 4336 9.69 6.50 671 8 LT-5 Industries 30826 143.13 104.57 731 30826 143.13 120.10 839 9 LT-6 Water Supply 15525 134.05 63.86 476 15525 134.05 83.12 620 10 LT-6 Street Lights 22679 76.23 47.38 622 22679 76.23 57.70 757 11 LT-7 Temporary Power Supply 14153 19.40 36.50 1881 14153 19.40 40.25 2075 LT Total 2368574 3987.37 2308.16 579 2368574 3987.37 2842.94 713 1 HT-1 Water Supply 111 89.59 48.67 543 111 89.59 62.85 702 2 HT-2 (a) Industries 905 548.29 438.39 800 905 548.29 454.60 829 3 HT-2 (b) Commercial 698 198.66 183.57 924 698 198.66 206.30 1038 HT-2 (c) Hospitals / educational instituitions 264 154.85 122.13 789 264 154.85 148.26 957 4 HT-3(a) Irrigation & LI Societies 23 15.71 5.41 344 23 15.71 7.35 468 5 HT-3 (b) Irrigation & LI Societies 3 0.32 0.14 438 3 0.32 0.18 563 6 HT-4 Residential Aparments 62 21.94 15.03 685 62 21.94 17.09 779 7 HT-5 Temporary Power Supply 16 5.50 7.09 1289 16 5.50 8.70 1582 8 SUPPLY TO MSEZ 0 18.31 10.62 580 0 18.31 12.45 680 HT Total 2082 1053.17 831.05 789 2082 1053.17 917.78 871 Total 2370656 5040.54 3139.21 623 2370656 5040.54 3760.72 746 KPC/ Wheeled 87.10 87.10 Gr Total 2370656 5127.64 3139.21 2370656 5127.64 3760.72 II Wheeling charges recovery 0.00 0.00 III Reconnection Fee 0.00 0.00 IV 0.00 0.00 V Service connection charges 8.39 8.39 VI Delayed payment charges 30.12 30.12 VII Other receipts 20.28 20.28 Gross Revenue from Sale of Power (I to VII) 2370656 5127.64 3198.00 2370656 5127.64 3819.51 LESS: 0.00 0.00 VIII Withdrawal of Revenue Demand -0.76 -0.76 IX Prompt Payment Incentive 0.00 0.00 Waival of interest from IP consumers as per GO 0.00 0.00 GRAND TOTAL 2370656 5127.64 3197.24 634 2370656 5127.64 3818.75 758 MESCOM Ltd.,

Revenue Subsidies and Grants Format-D3

S. No. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 (As per (As per (As per (As per (As per (As per (Revised (Revised Audited Audited Audited Audited Audited Audited Projec.) Projec.) Accounts) Accounts) Accounts) Accounts) Accounts) Accounts)

1 RE Subsidies ------

2 Grants for Research and Development Expenses ------

3 Grant for Survey and Investigation ------

4 Others (Tariff Subsidyof IP & BJ/KJ) 330.08 342.53 372.57 430.75 511.02 785.85 913.79 952.62

TOTAL 330.08 342.53 372.57 430.75 511.02 785.85 913.79 952.62 MESCOM Ltd.,

Non-Tariff Income (Other Income) Format-D4

Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 No. (As per (As per (As per (As per (As per (As per (Revised (Revised Audited Audited Audited Audited Audited Audited Projec.) Projec.) Accounts) Accounts) Accounts) Accounts) Accounts) Accounts)

1 Interest on staff loans and advances ------2 Income from Investments: a Interest on securities ------b Interest on Bank fixed deposits 1.04 0.91 1.46 0.49 0.30 0.72 0.72 0.72 c Income on other investments ------d Interest on loans/advances to suppliers/ Contractors - - 2.36 1.40 0.20 0.05 0.05 0.05 e Interest from Banks ------f Interest on Energy Balancing Dues - - 203.63 61.29 - - - Sub Total-2 1.04 0.91 207.45 63.18 0.50 0.77 0.77 0.77 3 Income from Trading: a Profit on sale of fixed assets, hire etc of apparatus 0.49 1.19 0.41 0.07 - - - - b Hire charges from Contractotrs ------c Profit on sale of stores 1.21 0.15 0.15 0.52 0.07 0.10 0.10 0.10 d Sale of Scrap 1.50 2.26 1.92 2.94 1.66 1.60 1.60 1.60 e Other Misc Receipts from trading 0.01 0.01 0.09 0.01 0.01 0.01 0.01 0.01 Sub Total-3 3.21 3.61 2.57 3.54 1.74 1.71 1.71 1.71 4 Income/Fees collections against staff welfare activities: a Recoveries for transport facilities ------MESCOM Ltd.,

Non-Tariff Income (Other Income) Format-D4

5 Miscellaneous Receipts: a Income due to right of way granted for laying fibre optic cables/co-axial - cables on T&D- system ------b Rental from Staff Quarters 0.83 1.08 0.78 0.72 1.18 1.24 1.24 1.24 c Rental from others 0.05 0.03 0.09 0.19 0.11 0.04 0.04 0.04 d Leave contribution ------e Excess found on physical verification of cash ------f Excess found on physical verification of stock 0.04 0.01 0.09 0.04 0.04 0.01 0.01 0.01 g Excess found on physical verification of Assets ------h Recovery from transport & vehicle expenses ------I Commission for collection of electricity duty 0.30 - 0.38 0.43 0.49 0.51 0.51 0.51 Net regulatory Asset considered in FY 15 (101.54) - - - - j Misc. recoveries 29.97 4.19 26.45 50.75 21.87 44.94 - - k Incentives / Rebate received 8.92 15.49 14.61 21.32 21.81 24.49 24.49 24.49 Sub Total-5 40.11 20.80 42.40 (28.09) 45.50 71.23 26.29 26.29 GRAND TOTAL: 44.36 25.32 252.42 38.63 47.74 73.71 28.77 28.77 MESCOM Ltd.,

Repairs and Maintenance Costs Format-D5 Rs. In Cr. (TOTAL) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 No. (As per (As per (As per (As per (As per (As per (Revised (Revised Audited Audited Audited Audited Audited Audited Projec.) Projec.) Accounts) Accounts) Accounts) Accounts) Accounts) Accounts)

1 Plant and Machinery 5.12 5.46 6.95 13.21 13.28 11.40 16.37 18.18 2 Buildings 0.30 0.35 0.06 1.14 1.32 1.17 1.63 1.81 3 Other civil works 0.21 0.26 0.16 0.15 0.15 0.11 0.18 0.21 4 Hydraulic works ------5 Lines, Cable Network, etc., including 33 KV. 7.41 8.72 12.62 20.05 17.83 22.83 21.99 24.43 6 Sub-station maintenance ------7 Vehicles 0.20 0.21 0.17 0.18 0.25 0.20 0.31 0.34 8 Furniture & Fixtures 0.01 0.01 0.02 0.02 0.01 - 0.01 0.01 9 Office Equipments 0.11 0.11 0.13 0.19 0.20 0.17 0.25 0.27 10 Others ------TOTAL 13.36 15.12 20.11 34.94 33.04 35.88 40.75 45.25 MESCOM Ltd.,

Repairs and Maintenance Costs Format-D5 Rs. In Cr. (Distribution Business) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-18 No. (As per (As per (As per (As per (As per (As per (Revised (Revised Audited Audited Audited Audited Audited Audited Projec.) Projec.) Accounts) Accounts) Accounts) Accounts) Accounts) Accounts)

1 Plant and Machinery 5.12 5.46 6.95 13.21 13.28 11.40 16.37 18.18 2 Buildings 0.15 0.18 0.03 0.57 0.66 0.59 0.81 0.91 3 Other civil works 0.11 0.13 0.08 0.08 0.08 0.06 0.09 0.11 4 Hydraulic works ------5 Lines, Cable Network, etc., including 33 KV. 3.71 4.36 6.31 10.03 8.92 11.42 11.00 12.22 6 Sub-station maintenance ------7 Vehicles 0.10 0.11 0.09 0.09 0.13 0.10 0.15 0.17 8 Furniture & Fixtures - - 0.01 0.01 - - - - 9 Office Equipments 0.04 0.04 0.05 0.07 0.08 0.06 0.09 0.10 10 Others ------TOTAL 9.23 10.28 13.52 24.06 23.15 23.63 28.51 31.69

MESCOM Ltd.,

Repairs and Maintenance Costs Format-D5 Rs. In Cr. (Retail Supply Business) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-18 No. (As per (As per (As per (As per (As per (As per (Revised (Revised Audited Audited Audited Audited Audited Audited Projec.) Projec.) Accounts) Accounts) Accounts) Accounts) Accounts) Accounts)

1 Plant and Machinery ------0.00 - 2 Buildings 0.15 0.17 0.03 0.57 0.66 0.58 0.82 0.90 3 Other civil works 0.10 0.13 0.08 0.07 0.07 0.05 0.09 0.10 4 Hydraulic works ------5 Lines, Cable Network, etc., including 33 KV. 3.70 4.36 6.31 10.02 8.91 11.41 10.99 12.21 6 Sub-station maintenance ------7 Vehicles 0.10 0.10 0.08 0.09 0.12 0.10 0.16 0.17 8 Furniture & Fixtures 0.01 0.01 0.01 0.01 0.01 - 0.01 0.01 9 Office Equipments 0.07 0.07 0.08 0.12 0.12 0.11 0.16 0.17 10 Others ------TOTAL 4.13 4.84 6.59 10.88 9.89 12.25 12.24 13.56 MESCOM Ltd.,

Employee Costs Format-D6 Rs. In Cr. (TOTAL) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 No. (As per (As per (As per (As per (As per (As per (Revised (Revised Audited Audited Audited Audited Audited Audited Projec.) Projec.) Accounts) Accounts) Accounts) Accounts) Accounts) Accounts)

1 Salaries 74.72 123.77 120.43 116.24 121.36 135.92 149.64 166.16 2 Overtime 2.41 3.15 2.60 2.47 2.66 2.14 3.28 3.64 3 Dearness Allowance 50.88 6.05 17.82 28.90 37.14 44.42 45.79 50.85 4 Other Allowances 6.86 12.70 13.23 13.43 16.55 16.56 20.41 22.66 5 Bonus 1.55 1.44 1.38 1.33 4.01 3.90 4.94 5.49 Sub-Total (1 to 5) 136.42 147.11 155.46 162.37 181.72 202.94 224.06 248.80 6 Medical expenses reimbursement 1.83 1.40 1.62 1.78 2.04 1.71 2.52 2.79 7 Leave travel Assistance ------8 Earned Leave Encashment 11.34 12.36 13.98 17.27 15.18 17.35 18.72 20.78 9 Retrenchment Compensation ------10 Payment under Workmen's Compensation Act 0.12 0.14 ------11 Payment to Helpers/ Emp. of Storm and Monsoon Gang 1.74 0.37 0.36 0.46 0.25 0.01 0.31 0.34 Sub-Total ( 6 to 11) 15.03 14.27 15.96 19.51 17.47 19.07 21.54 23.91 12 Staff Welfare expenses 3.12 4.59 5.05 5.45 3.42 3.35 4.22 4.68 13 Terminal Benefits 33.22 42.58 46.37 39.08 46.63 41.62 57.49 63.85 Sub-total (12 to 13) 36.34 47.17 51.42 44.53 50.05 44.97 61.71 68.53 14 Adl. Employee Cost due to recruitment ------10.35 31.04 15 Adl. ARR for pension & other liablities ------GRAND TOTAL 187.79 208.55 222.84 226.41 249.24 266.98 317.66 372.28 MESCOM Ltd.,

Employee Costs Format-D6 Rs. In Cr. (Distribution Business) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-18 No. (As per (As per (As per (As per (As per (As per (Revised (Revised Audited Audited Audited Audited Audited Audited Projec.) Projec.) Accounts) Accounts) Accounts) Accounts) Accounts) Accounts)

1 Salaries 28.39 47.03 45.76 44.17 46.12 51.65 56.86 63.14 2 Overtime 0.92 1.20 0.99 0.94 1.01 0.81 1.25 1.38 3 Dearness Allowance 19.33 2.30 6.77 10.98 14.11 16.88 17.40 19.32 4 Other Allowances 2.61 4.83 5.03 5.10 6.29 6.29 7.75 8.61 5 Bonus 0.59 0.55 0.52 0.51 1.52 1.48 1.88 2.09 Sub-Total (1 to 5) 51.84 55.91 59.07 61.70 69.05 77.11 85.14 94.54 6 Medical expenses reimbursement 0.70 0.53 0.62 0.68 0.78 0.65 0.96 1.06 7 Leave travel Assistance ------8 Earned Leave Encashment 4.31 4.70 5.31 6.56 5.77 6.59 7.11 7.90 9 Retrenchment Compensation ------10 Payment under Workmen's Compensation Act 0.05 0.05 ------11 Payment to Helpers/ Emp. of Storm and Monsoon Gang 0.66 0.14 0.14 0.17 0.10 - 0.12 0.13 Sub-Total ( 6 to 11) 5.72 5.42 6.07 7.41 6.65 7.24 8.19 9.09 12 Staff Welfare expenses 1.19 1.74 1.92 2.07 1.30 1.27 1.60 1.78 13 Terminal Benefits 12.62 16.18 17.62 14.85 17.72 15.82 21.85 24.26 Sub-total (12 to 13) 13.81 17.92 19.54 16.92 19.02 17.09 23.45 26.04 14 Adl. Employee Cost due to recruitment ------3.93 11.80 GRAND TOTAL 71.37 79.25 84.68 86.03 94.72 101.44 120.71 141.47 MESCOM Ltd.,

Employee Costs Format-D6 Rs. In Cr. (Retail Supply Business) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-18 No. (As per (As per (As per (As per (As per (As per (Revised (Revised Audited Audited Audited Audited Audited Audited Projec.) Projec.) Accounts) Accounts) Accounts) Accounts) Accounts) Accounts)

1 Salaries 46.33 76.74 74.67 72.07 75.24 84.27 92.78 103.02 2 Overtime 1.49 1.95 1.61 1.53 1.65 1.33 2.03 2.26 3 Dearness Allowance 31.55 3.75 11.05 17.92 23.03 27.54 28.39 31.53 4 Other Allowances 4.25 7.87 8.20 8.33 10.26 10.27 12.66 14.05 5 Bonus 0.96 0.89 0.86 0.82 2.49 2.42 3.06 3.40 Sub-Total (1 to 5) 84.58 91.20 96.39 100.67 112.67 125.83 138.92 154.26 6 Medical expenses reimbursement 1.13 0.87 1.00 1.10 1.26 1.06 1.56 1.73 7 Leave travel Assistance ------8 Earned Leave Encashment 7.03 7.66 8.67 10.71 9.41 10.76 11.61 12.88 9 Retrenchment Compensation ------10 Payment under Workmen's Compensation Act 0.07 0.09 ------11 Payment to Helpers/ Emp. of Storm and Monsoon Gang 1.08 0.23 0.22 0.29 0.15 0.01 0.19 0.21 Sub-Total ( 6 to 11) 9.31 8.85 9.89 12.10 10.82 11.83 13.35 14.82 12 Staff Welfare expenses 1.93 2.85 3.13 3.38 2.12 2.08 2.62 2.90 13 Terminal Benefits 20.60 26.40 28.75 24.23 28.91 25.80 35.64 39.59 Sub-total (12 to 13) 22.53 29.25 31.88 27.61 31.03 27.88 38.26 42.49 14 Adl. Employee Cost due to recruitment ------6.42 19.24 GRAND TOTAL 116.42 129.30 138.16 140.38 154.52 165.54 196.95 230.81 MESCOM Ltd.

Employee Costs - Additional Information Format-6A

Sl. Particulars FY-15 (Actuals) FY-16 (Actuals) FY-17 (Actuals) FY-18 (Projection) FY-19 (Projection) No. Number Cost Number Cost Number Cost Number Cost Number Cost Sanctioned Working (Rs. In Cr.) Sanctioned Working (Rs. In Cr.) Sanctioned Working (Rs. In Cr.) Sanctioned Working (Rs. In Cr.) Sanctioned Working (Rs. In Cr.) 1 Board of Directors 2 2 0.30 2 2 0.34 2 2 0.33 2 2 0.42 2 2 0.47 2 Chief Engineers & Equivalents 2 2 0.42 2 2 0.26 2 2 0.35 2 2 0.32 2 2 0.36 3 Superintending Engineers & Equivalents 15 6 1.27 15 14 1.53 15 11 2.12 15 15 1.89 15 15 2.10 4 Executive Engineers & Equivalents 41 32 5.36 44 43 7.20 44 41 7.24 44 44 8.88 44 44 9.86 5 Asst. Executive Engineers & Equivalents 181 151 17.85 193 135 15.96 191 166 22.28 191 191 19.68 191 191 21.85 6 Asst. Engineers & Equivalents 299 149 8.93 313 158 11.26 319 191 16.11 419 291 17.97 419 291 27.69 7 All other Staff 7977 3393 192.28 8217 5197 212.69 8282 5034 218.55 8590 5342 268.50 8590 5342 309.95

Total 8517 3735 226.41 8786 5551 249.24 8855 5447 266.98 9263 5887 317.66 9263 5887 372.28 MESCOM Ltd.,

Administration and General Expenses Format-D7 Rs. In Cr. FY 15 RE) (TOTAL) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 No. (As per (As per (As per (As per (As per (As per (Revised (Revised Audited Audited Audited Audited Audited Audited Projec.) Projec.) Accounts) Accounts) Accounts) Accounts) Accounts) Accounts)

1 Rents, Rates and Taxes 1.57 1.75 2.00 5.56 8.68 11.63 10.70 11.88 2 Security arrangements ------3 Insurance ------4 Telephone / postages Charges 1.22 1.19 1.27 1.53 1.71 1.81 2.11 2.34 5 V-sat, Internet and related charges - - - - - 0.17 - - 6 Legal charges 0.20 0.08 0.31 0.14 0.33 0.34 0.41 0.45 7 Audit Fee 0.02 0.02 0.04 0.04 0.04 0.04 0.05 0.05 8 Consultancy charges 0.03 0.03 0.10 0.10 0.08 0.22 0.10 0.11 9 Technical Fee ------10 Other professional charges 14.37 17.90 23.94 32.27 37.05 30.40 45.68 50.73 11 Travelling expenses 2.85 3.43 3.85 3.47 3.28 5.15 4.04 4.49 12 Conveyance and vehicle hire charges 4.16 4.06 6.22 7.04 7.50 8.61 9.25 10.27 13 Vehicle Licence &Registration Fee 0.09 0.09 0.10 0.14 0.11 0.11 0.14 0.15 14 Remunaration paid to GVPs 0.85 0.47 0.56 0.72 0.70 1.87 0.86 0.96 15 Substation Maintanance 0.66 1.04 1.21 1.51 2.07 2.08 2.55 2.83 Sub-total 26.02 30.06 39.60 52.52 61.55 62.43 75.89 84.26 15 Other expenses a Fees & subscription 0.88 0.55 0.64 0.02 0.78 0.72 0.96 1.07 b Books & periodicals 0.01 0.02 0.01 0.02 0.02 0.07 0.02 0.03 c Computor Stationary 0.04 0.06 0.07 0.13 0.09 0.09 0.11 0.12 d Printing & Stationery 0.58 0.62 0.89 1.05 1.39 1.14 1.71 1.90 e Advertisements 0.39 0.26 0.39 0.52 0.33 0.59 0.41 0.45 f Contribution/Donations 0.13 1.01 0.46 0.80 0.05 - 0.06 0.07 g Electricity charges 1.04 1.22 1.26 1.46 0.82 0.97 1.01 1.12 h Water charges 0.04 0.05 0.10 0.04 0.04 0.03 0.05 0.05 i Entertainment ------j Shared Expnses & Statutory Payments 0.33 0.90 1.23 3.00 0.98 0.99 1.21 1.34 k Miscellaneous 0.75 1.07 1.28 1.24 1.77 2.53 2.18 2.45 Sub-total 4.19 5.76 6.33 8.28 6.27 7.13 7.73 8.60 16 Royalty ------17 Freight ------18 Licence & ERC Filing Fee 0.10 0.10 0.10 0.10 0.10 0.10 0.12 0.14 19 Other purchase related expenses 0.43 0.48 0.53 0.57 0.50 0.52 0.62 0.68 Sub-total 0.53 0.58 0.63 0.67 0.60 0.62 0.74 0.82 Less: Expenses capitalised 1.00 1.01 1.91 1.25 1.38 GRAND TOTAL 30.74 36.40 46.56 60.47 67.41 68.27 83.12 92.30 MESCOM Ltd.,

Administration and General Expenses Format-D7 Rs. In Cr. (Distribution Business) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-18 No. (As per (As per (As per (As per (RE) (Projection) (Projection) (Projection) Audited Audited Audited Audited Accounts) Accounts) Accounts) Accounts)

1 Rents, Rates and Taxes 0.79 0.88 1.00 2.78 4.34 5.82 5.35 5.94 2 Security arrangements ------3 Insurance ------4 Telephone / postages Charges 0.61 0.60 0.64 0.77 0.86 0.91 1.05 1.17 5 V-sat, Internet and related charges - - - - - 0.09 - - 6 Legal charges 0.10 0.04 0.16 0.07 0.17 0.17 0.20 0.23 7 Audit Fee 0.01 0.01 0.02 0.02 0.02 0.02 0.02 0.03 8 Consultancy charges 0.02 0.02 0.05 0.05 0.04 0.11 0.05 0.06 9 Technical Fee ------10 Other professional charges ------11 Travelling expenses 1.08 1.30 1.46 1.32 1.25 1.96 1.54 1.71 12 Conveyance and vehicle hire charges 2.08 2.03 3.11 3.52 3.75 4.31 4.62 5.14 13 Vehicle Licence &Registration Fee 0.05 0.05 0.05 0.07 0.06 0.06 0.07 0.08 14 Remunaration paid to GVPs 0.43 0.24 0.28 0.36 0.35 0.94 0.43 0.48 15 Substation Maintanance 0.66 1.04 1.21 1.51 2.07 2.08 2.55 2.83 Sub-total 5.83 6.21 7.98 10.47 12.91 16.47 15.88 17.67 15 Other expenses ------a Fees & subscription 0.44 0.28 0.32 0.01 0.39 0.36 0.48 0.54 b Books & periodicals 0.01 0.01 0.01 0.01 0.01 0.04 0.01 0.02 c Computor Stationary 0.02 0.03 0.04 0.07 0.05 0.05 0.06 0.06 d Printing & Stationery 0.29 0.31 0.45 0.53 0.70 0.57 0.86 0.95 e Advertisements 0.20 0.13 0.20 0.26 0.17 0.30 0.20 0.23 f Contribution/Donations 0.07 0.51 0.23 0.40 0.03 - 0.03 0.04 g Electricity charges 0.40 0.46 0.48 0.55 0.31 0.37 0.38 0.43 h Water charges 0.02 0.02 0.04 0.02 0.02 0.01 0.02 0.02 i Entertainment ------j Shared Expnses & Statutory Payments 0.17 0.45 0.62 1.50 0.49 0.50 0.60 0.67 k Miscellaneous 0.38 0.54 0.64 0.62 0.89 1.27 1.09 1.23 Sub-total 2.00 2.74 3.03 3.97 3.06 3.47 3.73 4.19 16 Royalty ------17 Freight ------18 Licence & ERC Filing Fee 0.05 0.05 0.05 0.05 0.05 0.05 0.06 0.07 19 Other purchase related expenses 0.22 0.24 0.27 0.29 0.25 0.26 0.31 0.34 Sub-total 0.27 0.29 0.32 0.34 0.30 0.31 0.37 0.41 Less: Expenses capitalised 0.50 0.96 0.62 0.69 GRAND TOTAL 8.10 9.24 11.33 14.28 16.27 19.29 19.36 21.58 MESCOM Ltd.,

Administration and General Expenses Format-D7 Rs. In Cr. (Retail Supply Business) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-18 No. (As per (As per (As per (As per (RE) (Projection) (Projection) (Projection) Audited Audited Audited Audited Accounts) Accounts) Accounts) Accounts)

1 Rents, Rates and Taxes 0.78 0.87 1.00 2.78 4.34 5.81 5.35 5.94 2 Security arrangements ------3 Insurance ------4 Telephone / postages Charges 0.61 0.59 0.63 0.76 0.85 0.90 1.06 1.17 5 V-sat, Internet and related charges - - - - - 0.08 - - 6 Legal charges 0.10 0.04 0.15 0.07 0.16 0.17 0.21 0.22 7 Audit Fee 0.01 0.01 0.02 0.02 0.02 0.02 0.03 0.02 8 Consultancy charges 0.01 0.01 0.05 0.05 0.04 0.11 0.05 0.05 9 Technical Fee ------10 Other professional charges 14.37 17.90 23.94 32.27 37.05 30.40 45.68 50.73 11 Travelling expenses 1.77 2.13 2.39 2.15 2.03 3.19 2.50 2.78 12 Conveyance and vehicle hire charges 2.08 2.03 3.11 3.52 3.75 4.30 4.63 5.13 13 Vehicle Licence &Registration Fee 0.04 0.04 0.05 0.07 0.05 0.05 0.07 0.07 14 Remunaration paid to GVPs 0.42 0.23 0.28 0.36 0.35 0.93 0.43 0.48 15 Substation Maintanance ------0.00 - Sub-total 20.19 23.85 31.62 42.05 48.64 45.96 60.01 66.59 15 Other expenses ------a Fees & subscription 0.44 0.27 0.32 0.01 0.39 0.36 0.48 0.53 b Books & periodicals - 0.01 - 0.01 0.01 0.03 0.01 0.01 c Computor Stationary 0.02 0.03 0.03 0.06 0.04 0.04 0.05 0.06 d Printing & Stationery 0.29 0.31 0.44 0.52 0.69 0.57 0.85 0.95 e Advertisements 0.19 0.13 0.19 0.26 0.16 0.29 0.21 0.22 f Contribution/Donations 0.06 0.50 0.23 0.40 0.02 - 0.03 0.03 g Electricity charges 0.64 0.76 0.78 0.91 0.51 0.60 0.63 0.69 h Water charges 0.02 0.03 0.06 0.02 0.02 0.02 0.03 0.03 i Entertainment ------j Shared Expnses & Statutory Payments 0.16 0.45 0.61 1.50 0.49 0.49 0.61 0.67 k Miscellaneous 0.37 0.53 0.64 0.62 0.88 1.26 1.09 1.22 Sub-total 2.19 3.02 3.30 4.31 3.21 3.66 4.00 4.41 16 Royalty ------17 Freight ------18 Licence & ERC Filing Fee 0.05 0.05 0.05 0.05 0.05 0.05 0.06 0.07 19 Other purchase related expenses 0.21 0.24 0.26 0.28 0.25 0.26 0.31 0.34 Sub-total 0.26 0.29 0.31 0.33 0.30 0.31 0.37 0.41 Less: Expenses capitalised 0.50 0.95 0.63 0.69 GRAND TOTAL 22.64 27.16 35.23 46.19 52.15 48.98 63.76 70.72 MESCOM Ltd.,

Depreciation Format-D8 Rs. In Cr. (TOTAL) Sl. Particulars FY-12 (As per audited A/c) FY-13 (As per audited A/c) FY-14 (As per audited A/c) No. OB Additions Retirement OB Additions Retirement OB Additions Retirement during of Assets during of Assets during of Assets the year during the year during the year during the year the year the year 1 Land and rights 0.01 - - 0.01 0.01 - 0.02 - - 2 Buildings 4.27 0.73 - 5.00 0.79 - 5.79 0.95 - 3 Hdraulic Works 0.39 0.10 - 0.49 0.10 - 0.59 0.11 - 4 Other Civil Works 0.06 0.01 - 0.07 0.02 - 0.09 0.02 - 5 Plant & Machinery 43.93 9.26 2.13 51.06 9.77 12.27 48.56 9.64 5.01 6 Lines, Cables, Networks 243.12 40.55 1.33 282.34 31.56 49.19 264.71 35.33 3.35 7 Service lines 29.33 0.64 - 29.97 0.66 4.70 25.93 0.65 - 8 Metering equipment 68.32 7.39 1.50 74.21 7.72 10.94 70.99 7.80 1.77 9 Vehicles 2.80 0.05 0.05 2.80 0.05 0.06 2.79 0.05 0.10 10 Furniture Fixtures 1.02 0.15 0.01 1.16 0.13 0.02 1.27 0.13 0.01 11 Office Equipments 0.42 0.01 - 0.43 0.03 0.01 0.45 0.03 0.01 10 ------TOTAL 393.67 58.89 5.02 447.54 50.84 77.19 421.19 54.71 10.25 MESCOM Ltd.,

Depreciation Format-D8 Rs. In Cr. (TOTAL) Sl. Particulars FY-15 (As per audited A/c) FY-16 (As per audited A/c) FY-17 (As per audited A/c) No. OB Additions Retirement OB Additions Retirement OB Additions Retirement during of Assets during of Assets during of Assets the year during the year during the year during the year the year the year 1 Land and rights ------2 Buildings 6.74 1.01 - 7.75 1.14 - 8.89 1.83 0.01 3 Hdraulic Works 0.70 0.13 - 0.83 0.18 - 1.01 0.14 - 4 Other Civil Works 0.11 0.02 - 0.13 0.02 - 0.15 0.03 - 5 Plant & Machinery 53.19 12.62 6.77 59.04 12.65 7.78 63.91 15.20 6.64 6 Lines, Cables, Networks 296.69 40.68 6.54 330.83 40.28 8.60 362.51 48.81 9.13 7 Service lines 26.58 0.81 - 27.39 0.68 - 28.07 0.78 - 8 Metering equipment 77.02 8.13 - 85.14 8.38 - 93.52 11.12 - 9 Vehicles 2.74 0.08 0.05 2.77 0.11 - 2.88 0.18 0.09 10 Furniture Fixtures 1.39 0.17 0.01 1.55 0.18 0.02 1.71 0.28 0.01 11 Office Equipments 0.47 0.03 0.01 0.49 0.02 0.01 0.50 0.08 - 10 -

TOTAL 465.63 63.68 13.38 515.92 63.64 16.41 563.15 78.45 15.88 MESCOM Ltd.,

Depreciation Format-D8 Rs. In Cr. (TOTAL) Sl. Particulars FY-18 (Revised Projec.) FY-19 (Projected) No. OB Additions Retirement OB Additions Retirement CB during of Assets during of Assets the year during the year during the year the year 1 Land and rights ------2 Buildings 10.71 2.99 0.01 13.69 4.45 0.02 18.12 3 Hdraulic Works 1.15 0.15 - 1.30 0.17 - 1.47 4 Other Civil Works 0.18 0.03 - 0.21 0.03 - 0.24 5 Plant & Machinery 72.47 18.25 7.53 83.19 22.25 8.64 96.80 6 Lines, Cables, Networks 402.19 54.81 10.13 446.87 62.46 11.25 498.08 7 Service lines 28.85 0.79 - 29.64 0.80 - 30.44 8 Metering equipment 104.64 13.04 - 117.68 15.46 - 133.14 9 Vehicles 2.97 0.19 0.09 3.07 0.20 0.10 3.17 10 Furniture Fixtures 1.98 0.49 0.01 2.46 0.75 0.01 3.19 11 Office Equipments 0.58 0.17 - 0.75 0.29 - 1.04 10 -

TOTAL 625.72 90.91 17.78 698.86 106.86 20.02 785.69 MESCOM Ltd.,

Depreciation (Distribution Business) Format-D8 Rs. In Cr. Fy-12 Fy-13 Fy-14 Fy-15 Fy-16 Fy-17 Fy-18 Fy-19 Sl. Particulars (Actual) (Actual) (Actual) (Actual) (Actual) (Proj.) (Proj.) (Proj.) No. Additions Additions Additions Additions Additions Additions Additions Additions during during during during during during during during the year the year the year the year the year the year the year the year

1 Land and rights - 0.01 ------2 Buildings 0.73 0.79 0.95 1.01 1.14 1.83 2.99 4.45 3 Hdraulic Works 0.10 0.10 0.11 0.13 0.18 0.14 0.15 0.17 4 Other Civil Works 0.01 0.02 0.02 0.02 0.02 0.03 0.03 0.03 5 Plant & Machinery 7.11 8.38 9.64 12.62 12.65 15.20 18.25 22.25 6 Lines, Cables, Networks 40.55 31.56 35.33 40.68 40.28 48.81 54.81 62.46 7 Service lines ------8 Metering equipment ------9 Vehicles 0.05 0.05 0.05 0.08 0.11 0.18 0.19 0.20 10 Furniture Fixtures 0.15 0.13 0.13 0.17 0.18 0.28 0.49 0.75 11 Office Equipments 0.01 0.03 0.03 0.03 0.02 0.08 0.17 0.29 10 - -

TOTAL 48.61 41.07 46.26 54.74 54.58 66.55 77.08 90.60 MESCOM Ltd.,

Depreciation (Retail Supply Business) Format-D8 Rs. In Cr. Fy-12 Fy-13 Fy-14 Fy-15 Fy-16 Fy-17 Fy-18 Fy-19 Sl. Particulars (Actual) (Actual) (Actual) (Actual) (Actual) (Proj.) (Proj.) (Proj.) No. Additions Additions Additions Additions Additions Additions Additions Additions during during during during during during during during the year the year the year the year the year the year the year the year

1 Land and rights ------2 Buildings ------3 Hdraulic Works ------4 Other Civil Works ------5 Plant & Machinery 2.25 1.39 ------6 Lines, Cables, Networks ------7 Service lines 0.64 0.66 0.65 0.81 0.68 0.78 0.79 0.80 8 Metering equipment 7.39 7.72 7.80 8.13 8.38 11.12 13.04 15.46 9 Vehicles ------10 Furniture Fixtures ------11 Office Equipments ------10 ------

TOTAL 10.28 9.77 8.45 8.94 9.06 11.90 13.83 16.26 MESCOM Ltd.,

Loans & Debentures and Format-D9 Interest Charges TOTAL

FY-12 (As per Audited Accounts) FY-13 (As per Audited Accounts) New Total Re- Interest Interest CB New Total Re- Interest Interest CB loan loan -payment Rate for the loan loan -payment Rate for the in the at the of year in the at the of year Sl. Institution year end of principal year end of principal No. the year the year 1 Loans from GoK 5.23 9.52 2.99 11.50 0.18 6.53 - 6.53 4.81 11.00 0.15 1.72 2 PFC - 3.62 - 9.50 0.42 3.62 - 3.62 - 11.50 0.42 3.62 3 PMGY - 1.10 0.08 12.00 0.13 1.02 - 1.02 0.08 12.00 0.12 0.94 4 REC - 7.33 0.66 11.50 1.69 6.67 - 6.67 0.80 13.50 1.55 5.87 5 REC Funding 3.15 1.51 12.00 - 1.64 - 1.64 1.58 13.50 - 0.06 RGGVY - 7.66 - 12.25 0.88 7.66 3.44 11.10 - 12.25 0.86 11.10 REC Loan for NJY - 6 IP Loan (UCO Bank) ------8 COMML. BANKS / OTHER FI'S 81.00 434.87 67.24 10.50 43.15 367.63 67.00 434.63 73.25 12.25 42.66 361.38 9 Working Capital Interest (*) - - - - 6.23 - - - - - 28.19 - 10 Cost of Raising Fin. - - - - 0.28 - - - - - 2.85 - 11 Inerest On belated Pmt. of PP - - - - 51.51 ------12 Interest on consumers security deposit - - - - 16.95 - - - - - 30.26 - TOTAL 86.23 467.25 72.48 121.42 394.77 70.44 465.21 80.52 107.06 384.69 MESCOM Ltd.,

Loans & Debentures and Format-D9 Interest Charges TOTAL

FY-14 (As per Audited Accounts) FY-15 (As per Audited Accounts) New Total Re- Interest Interest CB New Total Re- Interest Interest CB loan loan -payment Rate for the loan loan -payment Rate for the in the at the of year in the at the of year Sl. Institution year end of principal year end of principal No. the year the year 1 Loans from GoK - 1.72 0.27 11.00 0.12 1.45 - 1.45 0.27 11.00 0.09 1.18 2 PFC 3.62 7.24 - 11.50 0.42 7.24 - 7.24 2.15 9.00 - 5.09 3 PMGY - 0.94 0.08 12.00 0.11 0.86 - 0.86 0.07 12.00 0.10 0.79 4 REC 13.26 19.13 0.84 14.00 1.79 18.29 21.56 39.85 0.79 12.25 1.00 39.06 5 REC Funding 10.25 10.31 5.79 13.50 - 4.52 - 4.52 1.51 - 3.01 RGGVY 2.52 13.62 - 12.25 1.36 13.62 1.91 15.53 0.51 11.75 5.17 15.02 REC Loan for NJY - - 6 IP Loan (UCO Bank) ------8 COMML. BANKS / OTHER FI'S 77.25 438.63 67.37 12.00 42.21 371.26 134.75 506.01 110.13 11.50 57.08 395.87 9 Working Capital Interest (*) - - - - 10.34 - - - - - 34.61 - 10 Cost of Raising Fin. - - - - 3.33 - - - - - 2.19 - 11 Inerest On belated Pmt. of PP - - - - 93.22 ------12 Interest on consumers security deposit - - - - 29.74 - - - - - 33.96 - TOTAL 106.90 491.59 74.35 182.64 417.24 158.22 575.46 115.43 134.20 460.02 MESCOM Ltd.,

Loans & Debentures and Format-D9 Interest Charges TOTAL

FY-16 (As per Audited Accounts) FY-17 (As per Audited Accounts) New Total Re- Interest Interest CB New Total Re- Interest Interest CB loan loan -payment Rate for the loan loan -payment Rate for the in the at the of year in the at the of year Sl. Institution year end of principal year end of principal No. the year the year 1 Loans from GoK - 1.18 0.27 11.00 0.06 0.91 - 0.91 0.29 - - 0.62 2 PFC - 5.09 - 9.00 - 5.09 - 5.09 - - - 5.09 3 PMGY - 0.79 0.08 12.00 0.09 0.71 - 0.71 0.08 12.00 0.08 0.63 4 REC - 39.06 - 12.25 4.79 39.06 - 39.06 8.55 12.25 5.45 30.51 5 REC Funding - 3.01 1.50 12.25 0.26 1.51 - 1.51 1.51 12.50 0.15 - RGGVY - 15.02 - 11.75 1.73 15.02 - 15.02 1.95 11.75 2.03 13.07 REC Loan for NJY - - 12.25 ------6 IP Loan (UCO Bank) ------8 COMML. BANKS / OTHER FI'S 120.00 515.87 100.80 11.50 55.75 415.07 182.00 597.07 99.42 9.85 45.72 497.65 9 Working Capital Interest (*) - - - 11.75 37.74 - - - - 10.70 45.01 - 10 Cost of Raising Fin. - - - - 1.21 - - - - - 3.95 - 11 Inerest On belated Pmt. of PP - - - - 0.29 ------12 Interest on consumers security deposit - - - 9.00 35.55 - - - - 7.75 35.68 - TOTAL 120.00 580.02 102.65 137.47 477.37 182.00 659.37 111.80 138.07 547.57 MESCOM Ltd.,

Loans & Debentures and Format-D9 Interest Charges TOTAL

FY-18 (Revised Projections) FY-19 (Projections) New Total Re- Interest Interest CB New Total Re- Interest Interest CB loan loan -payment Rate for the loan loan -payment Rate for the in the at the of year in the at the of year Sl. Institution year end of principal year end of principal No. the year the year 1 Loans from GoK - 0.62 0.29 - - 0.33 - 0.33 0.29 - - 0.04 2 PFC - 5.09 - - - 5.09 - 5.09 - - - 5.09 3 PMGY - 0.63 0.08 12.00 0.07 0.55 - 0.55 0.08 12.00 0.06 0.47 4 REC - 30.51 8.55 12.25 3.21 21.96 - 21.96 8.55 12.25 2.17 13.41 5 REC Funding ------RGGVY - 13.07 1.95 11.75 1.42 11.12 - 11.12 1.95 11.75 1.19 9.17 REC Loan for NJY ------6 IP Loan (UCO Bank) ------8 COMML. BANKS / OTHER FI'S 262.61 760.26 129.42 11.03 62.26 630.84 288.54 919.38 159.42 11.04 76.77 759.96 9 Working Capital Interest (*) - - - 11.00 62.72 - - - - 11.00 65.55 - 10 Cost of Raising Fin. - - - - 3.95 - - - - - 3.95 - 11 Inerest On belated Pmt. of PP ------12 Interest on consumers security deposit - - - 7.75 41.07 - - - - 7.75 44.30 - TOTAL 262.61 810.18 140.29 174.70 669.89 288.54 958.43 170.29 193.99 788.14 MESCOM Ltd.,

Loans & Debentures and Rs. In Cr. (Distribution Business) Format-D9 Interest Charges Fy-12 Fy-13 Fy-14 Fy-15 Fy-16 Fy-17 Fy-18 Fy-19

(Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Proj.) (Proj.) Interest Interest Interest Interest Interest Interest Interest Interest for the for the for the for the for the for the for the for the year year year year year year year year Sl. Institution No. 1 Loans from GoK 0.18 0.15 0.12 0.09 0.06 - - - 2 PFC 0.42 0.42 0.42 - - - - - 3 PMGY 0.13 0.12 0.11 0.10 0.09 0.08 0.07 0.06 4 REC 1.69 1.55 1.79 1.00 4.79 5.45 3.21 2.17 5 REC Funding - - - - 0.26 0.15 - - RGGVY 0.88 0.86 1.36 5.17 1.73 2.03 1.42 1.19 REC Loan for NJY ------6 IP Loan (UCO Bank) ------8 COMML. BANKS / OTHER FI'S 43.15 42.66 42.21 57.08 55.75 45.72 62.26 76.77 9 Working Capital Interest (*) 6.23 28.19 10.34 34.61 37.74 45.01 62.72 65.55 10 Cost of Raising Fin. 0.28 2.85 3.33 2.19 1.21 3.95 3.95 3.95 11 Inerest On belated Pmt. of PP ------12 Interest on consumers security deposit ------TOTAL 52.96 76.80 59.68 100.24 101.63 102.39 133.63 149.69 MESCOM Ltd.,

Loans & Debentures and Rs. In Cr. (Retail Supply Business) Format-D9 Interest Charges Fy-12 Fy-13 Fy-14 Fy-15 Fy-16 Fy-17 Fy-18 Fy-19

(Actual) (Actual) (RE) (Actual) (Actual) (Actual) (Proj.) (Proj.) Interest Interest Interest Interest Interest Interest Interest Interest for the for the for the for the for the for the for the for the year year year year year year year year Sl. Institution No. 1 Loans from GoK ------2 PFC ------3 PMGY ------4 REC ------5 REC Funding ------RGGVY REC Loan for NJY 6 IP Loan (UCO Bank) ------8 COMML. BANKS / OTHER FI'S ------9 Working Capital Interest (*) ------10 Cost of Raising Fin. ------11 Inerest On belated Pmt. of PP 51.51 - 93.22 - 0.29 - - - 12 Interest on consumers security deposit 16.95 30.26 29.74 33.96 35.55 35.68 41.07 44.30 TOTAL 68.46 30.26 122.96 33.96 35.84 35.68 41.07 44.30 MESCOM Ltd.,

Details of Expenses Capitalized Format-D10 Rs. In Cr. (TOTAL) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 No. (As per (As per (As per (As per (As per (As per (Revised (Revised Audited Audited Audited Audited Audited Audited Projections) Projections) Accounts) Accounts) Accounts) Accounts) Accounts) Accounts)

1 Interest & Finance charges Capitalised 2.25 2.07 2.51 2.39 1.30 2.39 2.39 2.39 2 Other expenses capitalised: a Employee Costs ------b Administration and General Expenses ------c Repairs and maintenance ------d Depreciation ------e Others, if any ------Total of 2 ------Grand Total 2.25 2.07 2.51 2.39 1.30 2.39 2.39 2.39 MESCOM Ltd.,

Details of Expenses Capitalized Format-D10 Rs. In Cr. (Distribution Business) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-18 No. (As per (As per (As per (As per (As per (Revised (Revised (Revised Audited Audited Audited Audited Audited Projections) Projections) Projections) Accounts) Accounts) Accounts) Accounts) Accounts)

MESCOM Ltd.,

Details of Expenses Capitalized Format-D10 Rs. In Cr. (Retail Supply Business) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-18 No. (As per (As per (As per (As per (As per (Revised (Revised (Revised Audited Audited Audited Audited Audited Projections) Projections) Projections) Accounts) Accounts) Accounts) Accounts) Accounts)

1 Interest & Finance charges Capitalised ------2 Other expenses capitalised: a Employee Costs ------b Administration and General Expenses ------c Repairs and maintenance ------d Depreciation ------e Others, if any ------Total of 2 ------Grand Total ------MESCOM Ltd.,

Other Debits Format-D11 Rs. In Cr. (TOTAL) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 No. (As per (As per (As per (As per (As per (As per (Revised (Revised Audited Audited Audited Audited Audited Audited Projections) Projections) Accounts) Accounts) Accounts) Accounts) Accounts) Accounts)

1 Material Cost Variance ------2 Research & Development Expenses ------3 Cost of Trading & Manufacturing ------4 Bad & Doubtful Debts provided 2.40 1.46 1.80 4.09 1.22 1.45 1.45 1.45 5 Miscellaneous Losses & write off 0.43 1.31 0.99 1.10 1.29 17.74 1.49 1.49 6 Intangible assets written off ------7 Provision for Taxation ( MAT / IT ) ------8 Sundry Expenses writtenoff - - 9.90 - 9 Less gain on sale of Assets ------10 Others 0.75 1.42 0.96 1.27 2.52 1.01 1.01 1.01 Grand Total 3.58 4.19 13.65 6.46 5.03 20.20 3.95 3.95 MESCOM Ltd.,

Other Debits Format-D11 Rs. In Cr. (Distribution Business) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-18 No. (As per (As per (As per (As per (RE) (Projection) (Projection) (Projection) Audited Audited Audited Audited Accounts) Accounts) Accounts) Accounts)

1 Material Cost Variance ------2 Research & Development Expenses ------3 Cost of Trading & Manufacturing ------4 Bad & Doubtful Debts provided ------5 Miscellaneous Losses & write off 0.43 1.31 0.99 1.10 1.29 17.74 1.49 1.49 6 Intangible assets written off ------7 Provision for Taxation ( MAT / IT ) ------8 Sundry Expenses writtenoff ------9 Less gain on sale of Assets ------10 Others 0.75 1.42 0.96 1.27 2.52 1.01 1.01 1.01 Grand Total 1.18 2.73 1.95 2.37 3.81 18.75 2.50 2.50

MESCOM Ltd.,

Other Debits Format-D11 Rs. In Cr. (Retail Supply Business) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-18 No. (As per (As per (As per (As per (RE) (Projection) (Projection) (Projection) Audited Audited Audited Audited Accounts) Accounts) Accounts) Accounts)

1 Material Cost Variance ------2 Research & Development Expenses ------3 Cost of Trading & Manufacturing ------4 Bad & Doubtful Debts provided 2.40 1.46 1.80 4.09 1.22 1.45 1.45 1.45 5 Miscellaneous Losses & write off ------6 Intangible assets written off ------7 Provision for Taxation ( MAT / IT ) ------8 Sundry Expenses writtenoff - - 9.90 - - - - - 9 Less gain on sale of Assets ------10 Others ------Grand Total 2.40 1.46 11.70 4.09 1.22 1.45 1.45 1.45 MESCOM Ltd.,

Extraordinary Items Format-D12

Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 No. (As per (As per (As per (As per (As per (As per (Revised (Revised Audited Audited Audited Audited Audited Audited Projections) Projections) Accounts) Accounts) Accounts) Accounts) Accounts) Accounts)

1 Extraordinary Credits(incl. - (78.43) (0.47) (3.43) (5.02) (3.07) - - subsidies aganst losses due to natural disasters ------TOTAL CREDITS - (78.43) (0.47) (3.43) (5.02) (3.07) - -

2 Extraordinary Debits (incl. ------subsidies aganst losses due to natural disasters ------TOTAL DEBITS ------

Grand Total - (78.43) (0.47) (3.43) - - - - MESCOM Ltd.,

Net Prior Period Credits (Charges) Format-D13 Rs. In Cr. (TOTAL) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 No. (As per (As per (As per (As per (As per (As per (Revised (Revised Audited Audited Audited Audited Audited Audited Projections) Projections) Accounts) Accounts) Accounts) Accounts) Accounts) Accounts)

Income relating to previous years: 1 Interest income for prior periods 0.02 - 0.30 0.30 - - - - 2 Income Tax prior period ------3 Excess Provision for Depreciation 0.50 ------4 Excess Provision for Interest and Fin. Charges - 0.13 0.51 0.36 0.06 0.25 0.25 0.25 5 Receipts from consumers ------6 Other Excess Provision 0.97 7.54 3.04 4.87 7.98 69.79 - - 7 Others Income 0.20 4.93 0.18 0.15 1.15 9.04 - - Tariff Subsidy relating to prior period 123.26 - - 23.67 - - - - TOTAL 124.95 12.60 4.03 29.35 9.19 79.08 0.25 0.25 Expenditure relating to previous years 1 Power Purchase 7.62 - 0.24 - 0.01 267.03 - - 2 Operating Expenses 0.02 - 0.02 0.04 0.01 - - - 3 Excise Duty on generation ------4 Employee Cost 0.28 0.29 0.19 0.20 0.04 0.37 0.37 0.37 5 Depreciation 2.92 ------6 Interest and Finance Charges - - 0.06 0.06 0.11 - - - Provision for Deferred tax liability / Income 7 Tax - - 0.49 - - - - - 8 Admn. Expenses - 0.02 0.04 0.05 - 0.02 0.02 0.02 9 Withdrawal of Revenue Demand ------10 Material Related ------11 Other 0.18 0.36 1.10 0.38 0.36 1.79 1.79 1.79 subsidies aganst losses due to natural 12 disasters ------TOTAL 11.02 0.67 2.14 0.73 0.53 269.21 2.18 2.18 Grand Total (113.93) (11.93) (1.89) (28.62) - 190.13 1.93 1.93 MESCOM Ltd.,

Net Prior Period Credits (Charges) Format-D13 Rs. In Cr. (Distribution Business) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-18 No. (As per (As per (As per (As per (As per (Revised (Revised (Revised Audited Audited Audited Audited Audited Projections) Projections) Projections) Accounts) Accounts) Accounts) Accounts) Accounts)

Income relating to previous years: 1 Interest income for prior periods 0.02 - 0.30 0.30 - - - - 2 Income Tax prior period ------3 Excess Provision for Depreciation 0.50 ------

4 Excess Provision for Interest and Fin. Charges - 0.13 0.51 0.36 0.06 0.25 0.25 0.25 5 Receipts from consumers ------6 Other Excess Provision 0.97 7.54 3.04 4.87 7.98 69.79 - - 7 Others Income 0.20 4.93 0.18 0.15 1.15 9.04 - - Tariff Subsidy relating to prior period 123.26 - - 23.67 - - - - TOTAL 124.95 12.60 4.03 29.35 9.19 79.08 0.25 0.25 Expenditure relating to previous years 1 Power Purchase 7.62 - 0.24 - 0.01 267.03 - - 2 Operating Expenses 0.02 - 0.02 0.04 0.01 - - - 3 Excise Duty on generation ------4 Employee Cost 0.28 0.29 0.19 0.20 0.04 0.37 0.37 0.37 5 Depreciation 2.92 ------6 Interest and Finance Charges - - 0.06 0.06 0.11 - - - Provision for Deferred tax liability / Income 7 Tax - - 0.49 - - - - - 8 Admn. Expenses - 0.02 0.04 0.05 - 0.02 0.02 0.02 9 Withdrawal of Revenue Demand ------10 Material Related ------11 Other 0.18 0.36 1.10 0.38 0.36 1.79 1.79 1.79 subsidies aganst losses due to natural 12 disasters ------TOTAL 11.02 0.67 2.14 0.73 0.53 269.21 2.18 2.18 Grand Total (113.93) (11.93) (1.89) (28.62) (8.66) 190.13 1.93 1.93 MESCOM Ltd.,

Net Prior Period Credits (Charges) Format-D13 Rs. In Cr. (Retail Supply Business) Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-18 No. (As per (As per (As per (As per (As per (Revised (Revised (Revised Audited Audited Audited Audited Audited Projections) Projections) Projections) Accounts) Accounts) Accounts) Accounts) Accounts)

Income relating to previous years: 1 Interest income for prior periods ------2 Income Tax prior period ------3 Excess Provision for Depreciation ------

4 Excess Provision for Interest and Fin. Charges ------5 Receipts from consumers ------6 Other Excess Provision ------7 Others Income ------Tariff Subsidy relating to prior period ------TOTAL ------Expenditure relating to previous years 1 Power Purchase ------2 Operating Expenses ------3 Excise Duty on generation ------4 Employee Cost ------5 Depreciation ------6 Interest and Finance Charges ------Provision for Deferred tax liability / Income 7 Tax ------8 Admn. Expenses ------9 Withdrawal of Revenue Demand ------10 Material Related ------11 Other ------subsidies aganst losses due to natural 12 disasters ------TOTAL ------Grand Total ------MESCOM Ltd.,

Contributions, Grants and Subsidies Format-D14 towards cost of Capital Assets Rs. In Cr. (TOTAL) Sl. Particulars FY-11 (As per audited FY-12A/c) (As per audited A/c) FY-13 (As per audited A/c) FY-14 (As per audited A/c) FY-15 (As per audited A/c) No. Balance Additions Balance Additions Balance Additions Balance Additions Balance 1 Capital subsidy 15.93 - 15.93 - 15.93 - 15.93 - 15.93 2 Consumers Contribution 107.26 40.36 147.62 22.47 170.09 30.76 200.85 43.80 244.65 3 PMGY & RGGVY Grants 64.98 - 64.98 30.69 95.67 21.19 116.86 19.77 136.63

4 APDRP Grants 73.47 - 73.47 - 73.47 0.29 73.76 - 73.76 5 Others 1.16 - 1.16 10.55 11.71 - 11.71 - 11.71 TOTAL 262.80 40.36 303.16 63.71 366.87 52.24 419.11 63.57 482.68

MESCOM Ltd.,

Contributions, Grants and Subsidies Format-D14 towards cost of Capital Assets Rs. In Cr. (Distribution Business) Sl. Particulars FY-11 (As per audited FY-12A/c) (As per audited A/c) FY-13 (As per audited A/c) FY-14 (As per audited A/c) FY-15 (As per audited A/c) No. Balance Additions Balance Additions Balance Additions Balance Additions Balance 1 Capital subsidy 15.93 - 15.93 - 15.93 - 15.93 - 15.93 2 Consumers Contribution 83.39 31.38 114.77 17.47 132.24 23.92 156.16 34.05 190.22 3 PMGY & RGGVY Grants 64.98 - 64.98 30.69 95.67 21.19 116.86 19.77 136.63 4 APDRP Grants 73.47 - 73.47 - 73.47 0.29 73.76 - 73.76 5 Others 1.16 - 1.16 10.55 11.71 - 11.71 - 11.71 TOTAL 238.93 31.38 270.31 58.71 329.02 45.40 374.42 53.82 428.25

MESCOM Ltd.,

Contributions, Grants and Subsidies Format-D14 towards cost of Capital Assets Rs. In Cr. (Retail Supply Business) Sl. Particulars FY-11 (As per audited FY-12A/c) (As per audited A/c) FY-13 (As per audited A/c) FY-14 (As per audited A/c) FY-15 (As per audited A/c) No. Balance Additions Balance Additions Balance Additions Balance Additions Balance 1 Capital subsidy ------2 Consumers Contribution 23.87 8.98 32.85 5.00 37.85 6.84 44.69 9.75 54.43 3 PMGY & RGGVY Grants ------4 APDRP Grants ------5 Others ------TOTAL 23.87 8.98 32.85 5.00 37.85 6.84 44.69 9.75 54.43 MESCOM Ltd.,

Contributions, Grants and Subsidies Format-D14 towards cost of Capital Assets Rs. In Cr. (TOTAL) Sl. Particulars FY-16 (As per audited A/c) FY-17 (As per audited A/c) FY-18 (Revised Projecion) FY-19 (Revised Projecion) No. Additions Balance Additions Balance Additions Balance Additions Balance 1 Capital subsidy 11.51 27.44 33.29 60.73 - 60.73 - 60.73 2 Consumers Contribution 32.48 277.13 57.83 334.96 57.83 392.79 57.83 450.62 3 PMGY & RGGVY Grants - 136.63 - 136.63 - 136.63 - 136.63

4 APDRP Grants - 73.76 - 73.76 - 73.76 - 73.76 5 Others - 11.71 - 11.71 - 11.71 - 11.71 TOTAL 43.99 526.67 91.12 617.79 57.83 675.62 57.83 733.45

MESCOM Ltd.,

Contributions, Grants and Subsidies Format-D14 towards cost of Capital Assets Rs. In Cr. (Distribution Business) Sl. Particulars FY-16 (REt FY-17 (Projecion)t FY-18 (Revised Projecion) FY-19 (Revised Projecion) No. Additions Balance Additions Balance Additions Balance Additions Balance 1 Capital subsidy 11.51 27.44 33.29 60.73 - 60.73 - 60.73 2 Consumers Contribution 25.25 215.47 44.96 260.43 44.96 305.39 44.96 350.36 3 PMGY & RGGVY Grants - 136.63 - 136.63 - 136.63 - 136.63 4 APDRP Grants - 73.76 - 73.76 - 73.76 - 73.76 5 Others - 11.71 - 11.71 - 11.71 - 11.71 TOTAL 36.76 465.01 78.25 543.26 44.96 588.22 44.96 633.19

MESCOM Ltd.,

Contributions, Grants and Subsidies Format-D14 towards cost of Capital Assets Rs. In Cr. (Retail Supply Business) Sl. Particulars FY-16 (REt FY-17 (Projecion)t FY-18 (Revised Projecion) FY-19 (Revised Projecion) No. Additions Balance Additions Balance Additions Balance Additions Balance 1 Capital subsidy ------2 Consumers Contribution 7.23 61.66 12.87 74.53 12.87 87.40 12.87 100.26 3 PMGY & RGGVY Grants ------4 APDRP Grants ------5 Others ------TOTAL 7.23 61.66 12.87 74.53 12.87 87.40 12.87 100.26 MESCOM Ltd.,

Gross Fixed Assets Format-D15

Sl. Particulars FY-12 (As per audited A/c) FY-13 (As per audited A/c) FY-14 (As per audited A/c) No. OB Additions Retirement OB Additions Retirement OB Additions Retirement during of Assets during of Assets during of Assets the year during the year during the year during the year the year the year 1 Land and rights 4.60 0.04 0.01 4.63 0.28 0.01 4.90 - 0.01 2 Buildings 20.42 2.75 - 23.17 3.69 - 26.86 2.14 - 3 Hdraulic Works 1.78 0.17 - 1.95 0.09 - 2.04 0.17 - 4 Other Civil Works 0.27 0.15 - 0.42 - - 0.42 - - 5 Plant & Machinery 189.59 50.03 20.63 218.99 48.59 75.57 192.01 45.06 24.85 6 Lines, Cables, Networks 808.78 99.96 2.06 906.68 101.14 230.15 777.67 77.74 5.73 Service lines 46.26 0.96 - 47.22 0.41 15.47 32.16 2.24 - Metering equipment 158.68 7.57 1.54 164.71 7.34 41.77 130.28 10.24 2.34 7 Vehicles 3.38 0.22 0.05 3.55 - 0.06 3.49 0.51 0.11 8 Furniture Fixtures 2.29 0.25 0.01 2.53 0.29 0.02 2.80 0.28 0.02 9 Office Equipments 0.96 (0.28) 0.01 0.67 0.03 0.01 0.69 0.03 0.02 TOTAL 1,237.01 161.82 24.31 1,374.52 161.86 363.06 1,173.32 138.41 33.08 MESCOM Ltd.,

Gross Fixed Assets

Sl. Particulars FY-15 (As per audited A/c) FY-16 (As per audited A/c) FY-17 (As per audited A/c) No. OB Additions Retirement OB Additions Retirement OB Additions Retirement during of Assets during of Assets during of Assets the year during the year during the year during the year the year the year 1 Land and rights 4.89 - 0.01 4.88 2.99 0.01 7.86 0.37 0.07 2 Buildings 29.00 1.85 - 30.85 4.79 35.64 24.10 0.04 3 Hdraulic Works 2.21 0.22 - 2.43 0.10 2.53 0.20 - 4 Other Civil Works 0.42 0.21 - 0.63 0.07 0.70 - - 5 Plant & Machinery 212.22 41.67 32.56 221.33 73.51 40.00 254.84 76.58 38.27 6 Lines, Cables, Networks 849.68 90.23 8.54 931.37 140.31 8.02 1,063.66 118.62 10.95 Service lines 34.40 1.32 - 35.72 0.40 36.12 0.31 - Metering equipment 138.18 15.43 - 153.61 5.54 2.41 156.74 23.13 - 7 Vehicles 3.89 0.15 0.06 3.98 0.67 4.65 0.32 0.10 8 Furniture Fixtures 3.06 0.23 0.01 3.28 0.34 0.02 3.60 3.06 0.01 9 Office Equipments 0.70 0.06 - 0.76 0.09 0.01 0.84 1.48 0.01 TOTAL 1,278.65 151.37 41.18 1,388.84 228.81 50.47 1,567.18 248.17 49.45 MESCOM Ltd.,

Gross Fixed Assets

Sl. Particulars FY-18 (Revised Projec.) FY-19 (Revised Projec.) No. OB Additions Retirement CB Additions Retirement CB during of Assets during of Assets the year during the year during the year the year 1 Land and rights 8.16 0.56 0.07 8.65 0.62 0.08 9.19 2 Buildings 59.70 36.43 0.07 96.06 40.03 0.11 135.99 3 Hdraulic Works 2.73 0.30 - 3.03 0.33 - 3.36 4 Other Civil Works 0.70 - - 0.70 - - 0.70 5 Plant & Machinery 293.15 115.76 44.02 364.89 127.20 54.80 437.29 6 Lines, Cables, Networks 1,171.33 179.31 12.06 1,338.58 197.01 13.78 1,521.81 Service lines 36.43 0.47 - 36.90 0.52 - 37.42 Metering equipment 179.87 34.96 - 214.83 38.41 - 253.24 7 Vehicles 4.87 0.48 0.10 5.25 0.53 0.11 5.66 8 Furniture Fixtures 6.65 4.63 0.02 11.26 5.09 0.03 16.32 9 Office Equipments 2.31 2.24 0.03 4.52 2.46 0.05 6.93 TOTAL 1,765.90 375.14 56.37 2,084.67 412.20 68.96 2,427.91 MESCOM Ltd.,

Net Fixed Assets Format-D16 Rs. In Cr.

Sl. Particulars FY-12 (Actuals) FY-13 (Actuals) No. OB Additions Net OB Additions Net during Deprn. during Deprn. the year for the year for the year the year 1 Land and rights 4.59 0.03 - 4.62 0.27 0.01 2 Buildings 16.15 2.75 0.73 18.17 3.69 0.79 3 Hdraulic Works 1.39 0.17 0.10 1.46 0.09 0.10 4 Other Civil Works 0.21 0.15 0.01 0.35 - 0.02 5 Plant & Machinery 145.66 29.40 7.13 167.93 (26.98) (2.50) 6 Lines, Cables, Networks 565.66 97.90 39.22 624.34 (129.01) (17.63) 16.93 0.96 0.64 17.25 (15.06) (4.04) 90.37 6.03 5.89 90.51 (34.43) (3.22) 7 Vehicles 0.58 0.17 - 0.75 (0.06) (0.01) 8 Furniture Fixtures 1.27 0.24 0.14 1.37 0.27 0.11 9 Office Equipments 0.54 (0.29) 0.01 0.24 0.02 0.02

TOTAL 843.35 137.51 53.87 926.99 (201.20) (26.35) MESCOM Ltd.,

Net Fixed Assets Format-D16 Rs. In Cr.

Sl. Particulars FY-14 (Actuals) FY-15 (Actual) No. OB Additions Net OB Additions Net during Deprn. during Deprn. the year for the year for the year the year 1 Land and rights 4.88 (0.01) - 4.87 (0.01) - 2 Buildings 21.07 2.14 0.95 22.26 1.85 1.01 3 Hdraulic Works 1.45 0.17 0.11 1.51 0.22 0.13 4 Other Civil Works 0.33 - 0.02 0.31 0.21 0.02 5 Plant & Machinery 143.45 20.21 4.63 159.03 9.11 5.84 6 Lines, Cables, Networks 512.96 72.01 31.98 552.99 81.69 34.14 6.23 2.24 0.65 7.82 1.32 0.81 59.30 7.90 6.03 61.17 15.43 8.13 7 Vehicles 0.70 0.40 (0.05) 1.15 0.09 0.03 8 Furniture Fixtures 1.53 0.26 0.12 1.67 0.22 0.16 9 Office Equipments 0.24 0.01 0.02 0.23 0.06 0.02 - TOTAL 752.14 105.33 44.46 813.01 110.19 50.29 MESCOM Ltd.,

Net Fixed Assets Rs. In Cr. Format-D16

Sl. Particulars FY-16 (Actual) FY-17 (Actual) No. OB Additions Net OB Additions Net during Deprn. during Deprn. the year for the year for the year the year 1 Land and rights 4.86 2.98 - 7.84 0.30 - 2 Buildings 23.10 4.79 1.14 26.75 24.06 1.82 3 Hdraulic Works 1.60 0.10 0.18 1.52 0.20 0.14 4 Other Civil Works 0.50 0.07 0.02 0.55 - 0.03 5 Plant & Machinery 162.30 33.51 4.87 190.94 38.31 8.56 6 Lines, Cables, Networks 600.54 132.29 31.67 701.16 107.67 39.68 8.33 0.40 0.68 8.05 0.31 0.78 68.47 3.13 8.38 63.22 23.13 11.12 7 Vehicles 1.21 0.67 0.11 1.77 0.22 0.09 8 Furniture Fixtures 1.73 0.32 0.16 1.89 3.05 0.27 9 Office Equipments 0.27 0.08 0.01 0.34 1.47 0.08

TOTAL 872.91 178.34 47.22 1,004.03 198.72 62.57 MESCOM Ltd.,

Net Fixed Assets Rs. In Cr. Format-D16

Sl. Particulars FY-18 (Revised Projec.) FY-19 (Revised Projec.) No. OB Additions Net CB Additions Net CB during Deprn. during Deprn. the year for the year for the year the year 1 Land and rights 8.14 0.49 - 8.63 0.54 - 9.17 2 Buildings 48.99 36.36 2.98 82.38 39.92 4.43 117.86 3 Hdraulic Works 1.58 0.30 0.15 1.73 0.33 0.17 1.89 4 Other Civil Works 0.52 - 0.03 0.49 - 0.03 0.46 5 Plant & Machinery 220.69 71.74 10.72 281.71 72.40 13.61 340.50 6 Lines, Cables, Networks 769.15 167.25 44.68 891.72 183.23 51.21 1,023.75 7.58 0.47 0.79 7.26 0.52 0.80 6.98 75.23 34.96 13.04 97.15 38.41 15.46 120.10 7 Vehicles 1.90 0.38 0.10 2.18 0.42 0.10 2.49 8 Furniture Fixtures 4.67 4.61 0.48 8.80 5.06 0.74 13.13 9 Office Equipments 1.73 2.21 0.17 3.77 2.41 0.29 5.89

TOTAL 1,140.18 318.77 73.13 1,385.81 343.24 86.84 1,642.21 MESCOM Ltd.,

Work In Progress Format-D17

Sl. Particulars FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 No. (Revised (Revised Projec.) Projec.)

Opening balance 93.21 72.24 53.39 94.39 103.40 118.14 146.55 131.90

Add:

i. Capital expenditure 138.60 140.94 176.90 271.86 274.73 332.02 415.94 454.45

ii. Interest & Finance charges capitalised 2.25 2.07 2.51 2.39 1.30 2.39 2.39 2.39

iii. Other expenses capitalised ------

Total capital expenditure for the year 234.06 215.25 232.80 368.64 379.43 452.55 564.88 588.74

Less:

Expenditure Capitalised (Transferred to 161.82 161.86 138.41 151.37 228.81 248.17 375.15 412.20 Form-T15/D15)

Other Adjustments - - 31.05 113.87 32.48 57.83 57.83 57.83

Grand Total 72.24 53.39 94.39 103.40 118.14 146.55 131.90 118.71 MESCOM Ltd., Format-D18 DCB DATA FOR 2016-17 Particulars LT1 LT2 LT3 LT4 LT5 LT6 LT7 HT1 HT2 HT3 HT4 HT5 Defunct Total Opening Balance in Rs Crores -4.25 37.97 4.12 85.21 3.69 156.95 -14.12 8.27 85.21 0.48 0.10 -1.62 0 361.99 Demand in Rs Crores 10.27 658.36 289.84 780.26 93.18 104.30 27.15 44.13 721.06 4.60 11.91 6.82 0 2751.88 Collection in Rs Crores 11.02 663.05 290.34 782.77 94.57 89.26 27.96 40.47 714.01 4.30 12.02 6.60 0 2736.37 Closing Balance in Rs Crores -5.00 33.28 3.61 82.70 2.30 171.98 -14.94 11.93 92.26 0.78 -0.01 -1.39 0.00 377.50 Closing Balance ratio (CB/Demand) -0.49 0.05 0.01 0.11 0.02 1.65 -0.55 0.27 0.13 0.17 0.00 -0.20 0.00 0.14 Sales in MU 13.93 1333.09 342.34 1637.62 136.78 189.91 19.40 86.42 994.61 16.03 18.82 5.50 0 4794.45 Average Realisation in Rs. per unit 7.37 4.94 8.47 4.76 6.81 5.49 13.99 5.11 7.25 2.87 6.33 12.40 0.00 5.74 Average Collection in Rs. per unit 7.91 4.97 8.48 4.78 6.91 4.70 14.41 4.68 7.18 2.68 6.39 11.99 0.00 5.71 No. of Installations 143049 1506118 197670 295047 28793 33356 14153 88 1672 26 52 16 0 2220040 No.of installations read 142953 1506118 197670 289814 28793 33356 14153 88 1672 26 52 16 0 2214711 Billing efficiency in % 99.93% 100.00% 100.00% 98.23% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00% 99.76% Collection Efficiency 107.32% 100.71% 100.17% 100.32% 101.49% 85.58% 102.99% 91.71% 99.02% 93.44% 100.95% 96.72% 0.00% 99.44% To 33 & 11 KV 11 & 33 To KPTCL 220,110,66,33KV Interface Points Total 4869.12 MU

1225.87 MU EHT 228.69 MU

ns Station KPTCL 33 Input 1225.87 110KV 66KV 4640.43 4869.12 KV Bus at KVBus MU MU MU KPTCL 110/11 KPTCL 66/11 KV, KV Station 213.26 15.43 Loss KV 33 lines MU MU 1174.74 1.05% 51.13 MU MU Total LT 33&11 KV EHT MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED COMPANY SUPPLY ELECTRICITY MANGALORE

33 KV BUS

Sales KPTCL 11 1001.29 4309.17 3195.23 228.690 33KV 885.25 KV Bus KV Bus at ht MU MU MU MU MU 173.45 33/11 KV PowerKV 33/11 310 Loss Transformers 62 MVA Nos MU 14.12 0.29% 987.17 ENERGY FLOW DIAGRAM FOR FY-16 (Actual) To 33 To &11 KV Total To Input MU MU

3414.56 11 KV BUS 4401.73 5615.63MU MU Loss inLoss MU &% 4401.73 559.95 559.95

Loss KV 11 lines MU MU MU 0.0105 3.06% 149.00 MU 12.07% 11.50%

11 KV 4252.73 MU 5341.95MU 3540.93 11KV HT MU 711.80 line losses line and Transformer KV 33 Total Commerciallosses Line LT losses 11KV losses Transformer 11KV line losses MU

Loss 3033 DTC's 54056 MVA 2.47% 120.27 MU Losses inLosses MU &%

LT BUS 3420.66 559.95 222.52 120.27 149.00 65.25 2.91 MU 4244.32 MU 3420.66

Loss LT lines MU 11.50% 0.06% 4.57% 2.47% 3.06% 1.34% 4.57% 222.52 MU

Energy available for LT consumers is3198.14 MU

Commercial Actual Billed energy Loss in LT 3195.23 MU 0.06% 2.91 MU To 33 & 11 KV 11 & 33 To KPTCL 220,110,66,33KV Interface Points Total 5411.61 MU

1313.57 MU EHT 111.43 MU

ns Station KPTCL 33 Input 1313.57 110KV 66KV 5300.18 5411.61 KV Bus at KVBus MU MU MU KPTCL 110/11 KPTCL 66/11 KV, KV Station 99.12 12.31 Loss KV 33 lines MU MU 1256.75 1.05% 56.82 MU MU Total LT 33&11 KV EHT MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED COMPANY SUPPLY ELECTRICITY MANGALORE

33 KV BUS

Sales KPTCL 11 1167.45 4794.42 3678.93 1004.06 111.430 33KV KV Bus KV Bus at ht MU MU MU MU MU 89.30 33/11 KV PowerKV 33/11 330 Loss Transformers 66 MVA Nos MU 1151.76 15.69 0.29% ENERGY FLOW DIAGRAM FOR FY-17 (Actual) To 33 To &11 KV Total To Input MU MU

3986.61 11 KV BUS 5138.37 5615.63MU MU Loss inLoss MU &% 5138.37 617.19 617.19

Loss KV 11 lines MU MU MU 0.0105 3.06% 165.60 MU 11.64% 11.40%

11 KV 4972.77 MU 5341.95MU 4058.01 11KV HT MU 914.76 line losses line and Transformer KV 33 Total Commerciallosses Line LT losses 11KV losses Transformer 11KV line losses MU

Loss 3254 DTC's 59170 MVA 2.38% 128.80 MU Losses inLosses MU &%

LT BUS 3929.21 617.19 247.31 128.80 165.60 72.51 2.97 MU 4244.32 MU 3929.21

Loss LT lines MU 11.40% 0.05% 4.57% 2.38% 3.06% 1.34% 4.57% 247.31 MU

Energy available for LT consumers is3681.90 MU

Commercial Actual Billed energy Loss in LT 3678.93 MU 0.05% 2.97 MU To 33 & 11 KV 11 & 33 To KPTCL 220,110,66,33KV Interface Points Total 5587.79 MU

1738.87 MU EHT 111.43 MU

ns Station KPTCL 33 Input 1738.87 110KV 66KV 5476.36 5587.79 KV Bus at KVBus MU MU MU KPTCL 110/11 KPTCL 66/11 KV, KV Station 99.12 12.31 Loss KV 33 lines MU MU 1680.20 1.05% 58.67 MU MU Total LT 33&11 KV EHT MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED COMPANY SUPPLY ELECTRICITY MANGALORE

33 KV BUS

Sales KPTCL 11 1590.90 4959.16 3834.40 1013.33 111.430 33KV KV Bus KV Bus at ht MU MU MU MU MU 89.30 33/11 KV PowerKV 33/11 340 Loss Transformers 68 MVA Nos MU 1574.70 16.20 0.29% ENERGY FLOW DIAGRAM FOR FY-18 (Projection) To 33 To &11 KV Total To Input MU MU

3737.49 11 KV BUS 5312.19 5615.63MU MU Loss inLoss MU &% 5312.19 628.63 628.63

Loss KV 11 lines MU MU MU 0.0105 3.06% 170.99 MU 11.48% 11.25%

11 KV 5141.20 MU 5341.95MU 4217.17 11KV HT MU 924.03 line losses line and Transformer KV 33 Total Commerciallosses Line LT losses 11KV losses Transformer 11KV line losses MU

Loss 3815 DTC's 65576 MVA 2.32% 129.64 MU Losses inLosses MU &%

LT BUS 4087.53 628.63 250.33 129.64 170.99 74.87 2.80 MU 4244.32 MU 4087.53

Loss LT lines MU 11.25% 0.05% 4.48% 2.32% 3.06% 1.34% 4.48% 250.33 MU

Energy available for LT consumers is3837.20 MU

Commercial Actual Billed energy Loss in LT 3834.40 MU 0.05% 2.80 MU To 33 & 11 KV 11 & 33 To KPTCL 220,110,66,33KV Interface Points Total 5771.12 MU

1796.37 MU EHT 111.43 MU

ns Station KPTCL 33 Input 1796.37 110KV 66KV 5659.69 5771.12 KV Bus at KVBus MU MU MU KPTCL 110/11 KPTCL 66/11 KV, KV Station 99.12 12.31 Loss KV 33 lines MU MU 1735.77 1.05% 60.60 MU MU Total LT 33&11 KV EHT MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED COMPANY SUPPLY ELECTRICITY MANGALORE

33 KV BUS

Sales KPTCL 11 1646.47 5127.64 3993.26 1022.95 111.430 33KV KV Bus KV Bus at ht MU MU MU MU MU 89.30 33/11 KV PowerKV 33/11 345 Loss Transformers 69 MVA Nos MU 1629.73 16.74 0.29% ENERGY FLOW DIAGRAM FOR FY-19 (Projection) To 33 To &11 KV Total To Input MU MU

3863.32 11 KV BUS 5493.05 5615.63MU MU Loss inLoss MU &% 5493.05 643.48 643.48

Loss KV 11 lines MU MU MU 0.0105 3.06% 176.60 MU 11.37% 11.15%

11 KV 5316.45 MU 5341.95MU 4382.80 11KV HT MU 933.65 line losses line and Transformer KV 33 Total Commerciallosses Line LT losses 11KV losses Transformer 11KV line losses MU

Loss 3960 DTC's 68426 MVA 2.29% 132.16 MU Losses inLosses MU &%

LT BUS 4250.64 643.48 254.51 132.16 176.60 77.34 2.87 MU 4244.32 MU 4250.64

Loss LT lines MU 11.15% 0.05% 4.41% 2.29% 3.06% 1.34% 4.41% 254.51 MU

Energy available for LT consumers is3996.13 MU

Commercial Actual Billed energy Loss in LT 3993.26 MU 0.05% 2.87 MU MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED Form D19A COMMERCIAL LOSSES IDENTIFIED AND ASSESSED FOR THE PERIOD FROM 01-04-2014 TO 31-03-2017 SL. CATEGORY PARTICULARS TOTAL NO. LT1 LT2 LT3 LT4 LT5 LT6 LT7 HT Number of installations as at the 1 5705 212694 36266 40825 5617 8200 9668 440 319415 beginning of the year Number of installations inspected 2 during the period from 01.04.2015 to 8 7504 4806 746 388 6954 2034 18 22458 31.03.2016 Number of installations for which Cog. 0 60 8 19 20 0 26 0 133 3 commercial losses identified and N.Cog. 1 302 84 561 17 4643 193 2 5803 Numberassessed of units quanitifed for 4 0 219292 41272 178096 25485 15692263 101481 0 16257889 assessing Back Billing Charges Cog. 0 787190 131983 218030 309808 0 148383 0 1595394 Amount assessed in respect of item 4 5 Compo above 0 241000 112000 148000 582000 0 166000 0 1249000 unding Assessment of amount 6 N.Cog. 1357 3259249 1868243 1707046 178272 91532589 1518994 23967 100089717 (Without Energy) Short claims of other nature pointed out (without energy 7 viz.,Development Charges, 0 0 0 0 0 0 0 0 0 Supervision Charges, Augumentation Charges etc.,) Total Back Billing/Short Billing 8 1357 4287439 2112226 2073076 1070080 91532589 1833377 23967 102934111 raised during the year (5+6+7) Opening Balance of Back Billing 9 10330 20239693 2822056 3783145 8181861 62237257 4760054 3243189 105277585 Charges due Cog. 0 788621 136837 193852 709075 0 108982 0 1937367 Compo 10 Amount collected during the year 0 240000 112000 132000 556000 0 162000 0 1202000 unding N.Cog. 5634 1723800 557410 670153 127406 33977493 1203144 22415 38287455 Total 5634 2752421 806247 996005 1392481 33977493 1474126 22415 41421188 11 Closing Balance (8+9-10) 6053 21774711 4128035 4860216 7859460 1.2E+08 5119305 3244741 166784874 MANGALORE ELECTRICITY SUPPLY COMPANY LTD Existing and Proposed Tariff for FY-19. Existing Tariff Proposed Tariff E.C Tariff Category Description Load F.C Slab (in kWh) Load F.C Slab E.C LT-1 BJ/KJ 30 6.51 50 7.58

LT-2(a)(i) Domestic / AEH - First kW 40 1 -30 units 3.25 First kW 70 1 -30 units 3.65 City Mun. Corp Every addn KW 50 31 -100units 4.70 Every addn KW 80 31 -100units 5.20 and Areas coming 101 - 200 units 6.25 101 - 200 units 7.00 under ULBs above 200 units 7.30 above 200 units 8.30

LT-2(a)(ii) Domestic / AEH - First kW 25 1 -30 units 3.15 First kW 55 1 -30 units 3.55 Areas Every addn KW 40 31 -100units 4.40 Every addn KW 70 31 -100units 4.90 coming under 101 - 200 units 5.95 101 - 200 units 6.70 Village Panchayats above 200 units 6.80 above 200 units 7.80

LT-2(b)(i) Pvt. Edu Inst Per kW 55 1 -200 units 6.50 Per kW 75 1 -200 units 7.50 areas under City Corps Minimum 85 above 200 7.75 Minimum 105 above 200 8.75

LT-2(b)(ii) Pvt. Edu Inst (Areas coming Per KW 45 0 -200 units 5.95 Per KW 65 0 -200 units 6.95 under VPs) Minimum 70 above 200 7.20 Minimum 90 above 200 8.20

LT-3(i) Commercial -Areas Per KW 60 1 -50 units 7.50 Per KW 80 1 -50 units 8.00 under all ULB's above 500 units 8.50 above 500 units 9.00

LT-3(ii) Commercial - Per KW 50 1 -50 units 7.00 Per KW 70 1 -50 units 7.50 areas under VPs above 500 units 8.00 above 500 units 8.50 MANGALORE ELECTRICITY SUPPLY COMPANY LTD Existing and Proposed Tariff for FY-19. Existing Tariff Proposed Tariff E.C Tariff Category Description Load F.C Slab (in kWh) Load F.C Slab E.C LT-4(a) IP Sets - <=10Hp Per HP 0 per units 5.21 Per HP 0 per units 6.85

LT-4(b) IP Sets Above 10 HP Per HP 50 per units 3.00 Per HP 70 per units 3.50

LT-4(c)(i) IP Sets - Horticulture: <10 HP Per HP 40 per units 3.00 Per HP 60 per units 3.50

LT-4(c)(ii) IP Sets - Horticulture: >10 HP Per HP 50 per units 3.00 Per HP 70 per units 3.50

LT-5(a) Heating & Motive power Per HP(5 HP & below) 40 0 to 500 units 5.10 Per HP(5 HP & below) 60 1 -500 units 5.60 (Areas under Corporations) Per HP(5 HP to below 40 HP) 45 501 - 1000 units 6.05 Per HP(5 HP to below 40 HP) 65 501 - 1000 units 6.55 Per HP(40 HP to below 67HP)60 above 1000 units 6.35 Per HP(40 HP to below 67HP) 80 above 1000 units 6.85 Per HP (67 HP & above) 120 Per HP (67 HP & above) 140

LT-5(b) Heating & Motive power Per HP(5 HP & below) 35 0 to 500 units 5.00 Per HP(5 HP & below) 55 1 -500 units 5.50 (Areas other than 5(a)) Per HP(5 HP to below 40 HP) 40 501 - 1000 units 5.90 Per HP(5 HP to below 40 HP) 60 501 - 1000 units 6.40 Per HP(40 HP to below 67HP)55 above 1000 units 6.20 Per HP(40 HP to below 67HP) 75 above 1000 units 6.70 Per HP (67 HP & above) 110 Per HP (67 HP & above) 130

LT-6 Water Supply Per HP 55 per units 4.25 Per HP 75 per units 5.50

LT-6 Public Lighting Per KW 70 per units 5.85 Per KW 90 per units 7.10

LT-7(a) Temporary Supply Per KW/Week 190 per units 10.00 Per KW/Week 210 per units 11.00

LT-7(b) Temp.-Permanent connection Per KW 60 per units 10.00 Per KW 80 per units 11.00 MANGALORE ELECTRICITY SUPPLY COMPANY LTD Existing and Proposed Tariff for FY-19. Existing Tariff Proposed Tariff E.C Tariff Category Description Load F.C Slab (in kWh) Load F.C Slab E.C HT-1 Water Sup, drainage Per KVA 200 per units 4.85 Per KVA 400 per units 5.85

HT-2(a) Industries - Mescom Per KVA 200 1 -100000 units 6.60 Per KVA 400 1 -100000 units 5.60 above 100000 units 6.80 above 100000 units 5.80

HT-2(b) Commercial - Per KVA 220 1 -200000 units 8.25 Per KVA 400 1 -200000 units 8.50 Mescom Area above 200000 units 8.35 above 200000 units 9.00

HT-2(c)(i) Govt Hospitals, Per KVA 200 1 -100000 units 6.40 Per KVA 400 1 -100000 units 7.40 Govt Educational Institutes above 100000 units 6.80 above 100000 units 7.80

HT-2(c)(ii) Pvt. Hospitals Per KVA 200 1 -100000 units 7.40 Per KVA 400 1 -100000 units 8.40 Pvt. Educational Institutes above 100000 units 7.80 above 100000 units 8.80

HT-3(a)(i) Lift Irrig Govt. Dept Per HP/Annum 1240 per units 2.25 Per HP/Annum 1480 per units 3.25

HT-3(a)(ii) Pvt. LI scheme / LI Society Per HP 50 per units 2.25 Per HP 70 per units 3.25

HT-3(a)(iii) Pvt. LI sch / LI Sty Per HP 30 2.25 Per HP 0 0.00

HT - 3b Irrig & agri farms, govt Per HP 1240 per units 4.25 Per HP 1480 per units 5.25

HT-4 Res. Apartments Per KVA 120 per units 6.20 Per KVA 200 per units 6.70

HT-5 Temporary Supply Per HP 240 per units 10.00 Per KW/Week 400 per units 11.00

MSEZ Bulk Supply per units 5.80 per units 6.80 Format-D21 Fy-17 : @ Tariff-2017 Rates (Actuals) Category Part-1: Fixed Charges Part-2: Energy Charges TOTAL Slab Installations Connected FC Rate FC-Amount Slab Consumption EC Rate EC-Amount AMOUNT (No.s) Load (in Rs.) (Rs. In Cr.) (Mus) (in Rs.) (Rs. In Cr.) (Rs. In Cr.) LT-1<=18 - 1,43,049 6257 - 1.90 - 13.93 6.01 8.37 10.27 LT-1>18 50,323 2288 20.00 1.34 - 27.03 8.91 10.25 LT-2(a)(i) First kW 2,68,676 2,52,555 30.00 9.67 First 30 units 187.21 3.00 56.16 # Every additional KW 3,02,974 6,84,797 40.00 32.87 Next 70 units 244.37 4.40 107.52 # Next 100 152.00 5.90 89.68 # > 200 units 100.44 6.90 69.30 #

5,71,650 9,37,352 42.54 684.03 322.66 365.20 LT-2(a)(ii) First kW 6,42,979 5,85,111 20.00 15.43 First 30 units 253.01 2.90 73.37 # Every additional KW 2,37,814 4,54,363 30.00 16.36 Next 70 units 231.31 4.10 94.84 # Next 100 79.30 5.60 44.41 # > 200 units 44.58 6.40 28.53 #

8,80,793 10,39,474 31.79 608.21 241.15 272.94 LT-2(b)(i) Per kW 687 673 75.00 0.06 First 200 7.05 6.25 4.41 # Minimum 949 9,082 45.00 0.49 >200 units 1.73 7.45 1.29 #

1,636 9,755 0.55 8.78 5.70 6.25 LT-2(b)(ii) Per KW 961 875 60.00 0.07 First 200 1.01 5.70 0.58 Minimum 755 6,940 35.00 0.29 >200 units 4.03 6.90 2.78

1,716 7,815 0.36 5.04 3.36 3.72 LT-3(i) Per KW 90,276 80,346 50.00 5.42 First 50 28.05 7.15 20.06 25,462 1,47,988 - 8.88 >50 201.70 8.15 164.39 1,15,738 2,28,334 14.30 229.75 184.45 198.75 LT-3(ii) Per KW 71,281 63,440 40.00 5.46 First 50 10.71 6.45 6.91 10,651 58,810 - 2.82 >50 101.88 7.45 75.90 81,932 1,22,250 8.28 112.59 82.81 91.09 Format-D21 Fy-17 : @ Tariff-2017 Rates (Actuals) Category Part-1: Fixed Charges Part-2: Energy Charges TOTAL Slab Installations Connected FC Rate FC-Amount Slab Consumption EC Rate EC-Amount AMOUNT (No.s) Load (in Rs.) (Rs. In Cr.) (Mus) (in Rs.) (Rs. In Cr.) (Rs. In Cr.) LT-4(a) Per HP 2,91,129 9,64,916 - - - 1,628.06 4.73 775.58 775.58

LT-4(b) Per HP 245 4,997 40.00 0.29 - 1.21 2.80 0.34 0.63

LT-4 c(i) Per HP 2,906 16,364 30.00 0.70 - 4.19 2.80 1.17 1.87

LT-4 c (ii) Per HP 767 18,628 40.00 1.02 - 4.16 2.80 1.16 2.18

LT-5a Per HP 1,437 5,189 30.00 0.19 First 500 11.94 4.95 5.91 Per HP 2,967 48,663 35.00 2.04 Next 500 21.34 5.85 12.48 Per HP 526 31,320 40.00 1.50 >1000 10.86 6.15 6.68 Per HP 55 6,293 100.00 0.76 4,985 91,466 4.49 44.14 25.07 29.56 LT-5b Per HP 11,192 31,549 30.00 1.14 First 500 13.28 4.85 6.44 Per HP 11,253 1,25,232 35.00 5.26 Next 500 40.16 5.70 22.89 Per HP 1,277 67,830 40.00 3.26 >1000 39.20 6.00 23.52 Per HP 86 9,238 100.00 1.11 23,808 2,33,849 10.77 92.64 52.85 63.62 LT-6a Per HP 13,680 91,946 45.00 8.51 - 120.53 3.90 47.01 55.52

LT-6b Per KW 19,676 28,792 60.00 10.62 - 69.38 5.50 38.16 48.78

LT-7a Per KW/Week 13,598 74,717 170.00 8.52 - 18.88 9.50 17.94 26.46 Per HP -

LT-7b Per KW/Week 555 788 50.00 0.20 - 0.52 9.50 0.49 0.69 Per HP - Format-D21 Fy-17 : @ Tariff-2017 Rates (Actuals) Category Part-1: Fixed Charges Part-2: Energy Charges TOTAL Slab Installations Connected FC Rate FC-Amount Slab Consumption EC Rate EC-Amount AMOUNT (No.s) Load (in Rs.) (Rs. In Cr.) (Mus) (in Rs.) (Rs. In Cr.) (Rs. In Cr.) HT-1 Per KVA 88 22,987 190.00 5.24 - 86.42 4.50 38.89 44.13

HT-2(a) Per KVA 784 3,41,908 180.00 82.63 <=100,000 274.39 6.20 170.12 >100,000 273.90 6.60 180.77 784 82.63 548.29 350.89 433.52 HT-2(b) Per KVA 624 91,497 200.00 16.47 <=200,000 137.36 7.85 107.83 >200,000 48.70 8.15 39.69 624 16.47 186.06 147.52 163.99 HT-2c i Per KVA 103 12,033 180.00 1.95 <=100,000 31.13 6.00 18.68 >100,000 8.10 6.50 5.27 1.95 39.23 23.95 25.90

HT-2c ii Per KVA 161 47,113 180.00 5.79 <=100,000 103.32 7.00 72.32 >100,000 12.30 7.50 9.23 5.79 115.62 81.55 87.34 HT-3(a)i Per HP/Annum 22 15,033 1,120.00 1.29 0.00 15.71 2.00 3.14 4.43

HT-3(a)ii Per HP/Annum 1 250 40.00 0.04 0.00 - 2.00 - 0.04

HT-3(a)iii Per HP/Annum - - 20.00 - 0.00 - 2.00 - -

HT - 3b Per HP 3 500 1,120.00 - 0.00 0.32 4.00 0.13 0.13

HT-4 Per KVA 52 11,127 110.00 0.90 0.00 18.82 5.85 11.01 11.91

HT-5 Per kVA 16 5,520 220.00 1.59 5.50 9.50 5.23 6.82 MSEZ Supply 18.31 5.63 10.31 10.31

GRAND TOTAL 22,20,040 44,27,956 262.08 4,707.35 2,489.80 2,751.88 Format-D21 Fy-18 : @ Tariff-2018 Rates (for projected energy sales) Category Part-1: Fixed Charges Part-2: Energy Charges TOTAL Slab Installations Connected FC Rate FC-Amount Slab Consumption EC Rate EC-Amount AMOUNT (No.s) Load (in Rs.) (Rs. In Cr.) (Mus) (in Rs.) (Rs. In Cr.) (Rs. In Cr.) LT-1<=40 - 1,93,372 8545 - 0.00 - 41.29 6.51 26.88 26.88 LT-1>40 - 0 - 0.00 - - 0.00 0.00 LT-2(a)(i) First kW 2,79,369 2,62,606 40.00 13.41 First 30 units 193.87 3.25 63.01 # Every additional KW 3,15,033 7,12,053 50.00 42.72 Next 70 units 253.07 4.70 118.94 # Next 100 157.42 6.25 98.39 # > 200 units 104.02 7.30 75.93 #

5,94,402 9,74,660 56.13 708.38 356.27 412.40 LT-2(a)(ii) First kW 6,62,011 6,02,430 25.00 19.86 First 30 units 264.85 3.15 83.43 # Every additional KW 2,44,853 4,67,812 40.00 22.45 Next 70 units 242.14 4.40 106.54 # Next 100 83.01 5.95 49.39 # > 200 units 46.67 6.80 31.74 #

9,06,864 10,70,242 42.31 636.67 271.10 313.41 LT-2(b)(i) Per kW 707 693 85.00 0.07 First 200 7.68 6.50 4.99 # Minimum 977 9,350 55.00 0.62 >200 units 1.88 7.75 1.46 #

1,684 10,043 0.69 9.56 6.45 7.14 LT-2(b)(ii) Per KW 1,001 911 70.00 0.08 First 200 1.12 5.95 0.67 Minimum 786 7,225 45.00 0.39 >200 units 4.50 7.20 3.24

1,787 8,136 0.47 5.62 3.91 4.38 LT-3(i) Per KW 93,986 83,648 60.00 6.77 First 50 28.87 7.50 21.65 26,509 1,54,074 - 11.09 >50 207.59 8.50 176.45 1,20,495 2,37,721 17.86 236.46 198.10 215.96 LT-3(ii) Per KW 74,517 66,320 50.00 4.47 First 50 11.30 7.00 7.91 11,135 61,482 - 3.69 >50 107.57 8.00 86.06 85,652 1,27,802 8.16 118.87 93.97 102.13 Format-D21 Fy-18 : @ Tariff-2018 Rates (for projected energy sales) Category Part-1: Fixed Charges Part-2: Energy Charges TOTAL Slab Installations Connected FC Rate FC-Amount Slab Consumption EC Rate EC-Amount AMOUNT (No.s) Load (in Rs.) (Rs. In Cr.) (Mus) (in Rs.) (Rs. In Cr.) (Rs. In Cr.) LT-4(a) Per HP 3,04,087 10,07,864 - - - 1,702.32 5.21 886.91 886.91

LT-4(b) Per HP 266 5,425 50.00 0.33 - 1.21 3.00 0.36 0.69

LT-4 c(i) Per HP 3,193 17,980 40.00 0.86 - 4.52 3.00 1.36 2.22

LT-4 c (ii) Per HP 797 19,357 50.00 1.16 - 4.47 3.00 1.34 2.50

LT-5a Per HP 1,452 5,243 40.00 0.25 First 500 12.22 5.10 6.23 Per HP 3,142 51,533 45.00 2.78 Next 500 21.84 6.05 13.21 Per HP 531 31,618 60.00 2.28 >1000 11.11 6.35 7.05 Per HP 55 6,293 120.00 0.91 5,180 94,688 6.22 45.17 26.49 32.71 LT-5b Per HP 11,311 31,885 35.00 1.34 First 500 13.58 5.00 6.79 Per HP 11,918 1,32,632 40.00 6.37 Next 500 41.07 5.90 24.23 Per HP 1,289 68,467 55.00 4.52 >1000 40.09 6.20 24.86 Per HP 86 9,238 110.00 1.22 24,604 2,42,222 13.45 94.74 55.88 69.33 LT-6a Per HP 14,573 97,948 55.00 6.46 - 127.11 4.25 54.02 60.48

LT-6b Per KW 21,124 30,911 70.00 2.60 - 72.72 5.85 42.54 45.14

LT-7a Per KW/Week 13,598 74,717 190.00 17.04 - 18.88 10.00 18.88 35.92 Per HP -

LT-7b Per KW/Week 555 788 60.00 0.06 - 0.52 10.00 0.52 0.58 Per HP - Format-D21 Fy-18 : @ Tariff-2018 Rates (for projected energy sales) Category Part-1: Fixed Charges Part-2: Energy Charges TOTAL Slab Installations Connected FC Rate FC-Amount Slab Consumption EC Rate EC-Amount AMOUNT (No.s) Load (in Rs.) (Rs. In Cr.) (Mus) (in Rs.) (Rs. In Cr.) (Rs. In Cr.) HT-1 Per KVA 99 25,860 200.00 4.65 - 87.99 4.85 42.68 47.33

HT-2(a) Per KVA 842 3,67,202 200.00 66.10 <=100,000 274.39 6.60 181.10 >100,000 273.90 6.80 186.25 842 66.10 548.29 367.35 433.45 HT-2(b) Per KVA 660 96,776 220.00 19.16 <=200,000 141.94 8.25 117.10 >200,000 50.32 8.35 42.02 660 19.16 192.26 159.12 178.28 HT-2c i Per KVA 103 12,033 200.00 2.17 <=100,000 31.13 6.40 19.92 >100,000 8.10 6.80 5.51 103 2.17 39.23 25.43 27.60

HT-2c ii Per KVA 161 47,113 200.00 8.48 <=100,000 103.32 7.40 76.46 >100,000 12.30 7.80 9.59 161 8.48 115.62 86.05 94.53 HT-3(a)i Per HP/Annum 22 15,033 1,240.00 1.86 0.00 15.71 2.25 3.53 5.39

HT-3(a)ii Per HP/Annum 1 250 50.00 0.02 0.00 - 2.25 - 0.02

HT-3(a)iii Per HP/Annum - - 30.00 - 0.00 - 2.25 - -

HT - 3b Per HP 3 500 1,240.00 - 0.00 0.32 4.25 0.14 0.14

HT-4 Per KVA 57 12,197 120.00 1.32 0.00 20.32 6.20 12.60 13.92

HT-5 Per kVA 16 5,520 240.00 1.59 5.50 10.00 5.50 7.09 MSEZ Supply 18.31 5.80 10.62 10.62

GRAND TOTAL 22,94,197 46,11,534 279.15 4,872.06 2,758.00 3,037.15 Format-D21 Fy-19 : @ Tariff-2018 Rates (for projected energy sales) Category Part-1: Fixed Charges Part-2: Energy Charges TOTAL Slab Installations Connected FC Rate FC-Amount Slab Consumption EC Rate EC-Amount AMOUNT (No.s) Load (in Rs.) (Rs. In Cr.) (Mus) (in Rs.) (Rs. In Cr.) (Rs. In Cr.) LT-1<=40 - 1,93,372 8545 30.00 0.00 - 41.62 6.51 27.09 27.09 LT-1>40 - 0 - 0.00 - - 0.00 0.00 LT-2(a)(i) First kW 2,90,488 2,73,058 40.00 13.94 First 30 units 200.78 3.25 65.25 # Every additional KW 3,27,571 7,40,392 50.00 44.42 Next 70 units 262.08 4.70 123.18 # Next 100 163.01 6.25 101.88 # > 200 units 107.73 7.30 78.64 #

6,18,059 10,13,451 58.36 733.60 368.95 427.31 LT-2(a)(ii) First kW 6,81,606 6,20,262 25.00 20.45 First 30 units 277.25 3.15 87.33 # Every additional KW 2,52,101 4,81,659 40.00 23.12 Next 70 units 253.47 4.40 111.53 # Next 100 86.89 5.95 51.70 # > 200 units 48.86 6.80 33.22 #

9,33,707 11,01,921 43.57 666.47 283.78 327.35 LT-2(b)(i) Per kW 728 713 85.00 0.07 First 200 8.36 6.50 5.43 # Minimum 1,006 9,627 55.00 0.64 >200 units 2.05 7.75 1.59 #

1,734 10,341 0.71 10.41 7.02 7.73 LT-2(b)(ii) Per KW 1,042 949 70.00 0.09 First 200 1.25 5.95 0.74 Minimum 819 7,528 45.00 0.41 >200 units 5.01 7.20 3.61

1,861 8,477 0.50 6.26 4.35 4.85 LT-3(i) Per KW 97,849 87,086 60.00 7.05 First 50 29.71 7.50 22.28 27,598 1,60,403 - 11.55 >50 213.65 8.50 181.60 1,25,447 2,47,489 18.60 243.36 203.88 222.48 LT-3(ii) Per KW 77,901 69,332 50.00 4.67 First 50 11.93 7.00 8.35 11,640 64,271 - 3.86 >50 113.57 8.00 90.86 89,541 1,33,603 8.53 125.50 99.21 107.74 Format-D21 Fy-19 : @ Tariff-2018 Rates (for projected energy sales) Category Part-1: Fixed Charges Part-2: Energy Charges TOTAL Slab Installations Connected FC Rate FC-Amount Slab Consumption EC Rate EC-Amount AMOUNT (No.s) Load (in Rs.) (Rs. In Cr.) (Mus) (in Rs.) (Rs. In Cr.) (Rs. In Cr.) LT-4(a) Per HP 3,17,045 10,50,812 - - - 1,776.44 5.21 925.53 925.53

LT-4(b) Per HP 289 5,894 50.00 0.35 - 1.21 3.00 0.36 0.71

LT-4 c(i) Per HP 3,508 19,754 40.00 0.95 - 4.88 3.00 1.46 2.41

LT-4 c (ii) Per HP 828 20,109 50.00 1.21 - 4.81 3.00 1.44 2.65

LT-5a Per HP 1,468 5,301 40.00 0.25 First 500 12.50 5.10 6.38 Per HP 3,328 54,584 45.00 2.95 Next 500 22.34 6.05 13.52 Per HP 536 31,916 60.00 2.30 >1000 11.37 6.35 7.22 Per HP 55 6,293 120.00 0.91 5,387 98,094 6.41 46.21 27.12 33.53 LT-5b Per HP 11,430 32,220 35.00 1.35 First 500 13.90 5.00 6.95 Per HP 12,622 1,40,467 40.00 6.74 Next 500 42.01 5.90 24.79 Per HP 1,301 69,104 55.00 4.56 >1000 41.01 6.20 25.43 Per HP 86 9,238 110.00 1.22 25,439 2,51,030 13.87 96.92 57.17 71.04 LT-6a Per HP 15,525 1,04,347 55.00 6.89 - 134.05 4.25 56.97 63.86

LT-6b Per KW 22,679 33,186 70.00 2.79 - 76.23 5.85 44.59 47.38

LT-7a Per KW/Week 13,598 74,717 190.00 17.04 - 18.88 10.00 18.88 35.92 Per HP -

LT-7b Per KW/Week 555 788 60.00 0.06 - 0.52 10.00 0.52 0.58 Per HP - Format-D21 Fy-19 : @ Tariff-2018 Rates (for projected energy sales) Category Part-1: Fixed Charges Part-2: Energy Charges TOTAL Slab Installations Connected FC Rate FC-Amount Slab Consumption EC Rate EC-Amount AMOUNT (No.s) Load (in Rs.) (Rs. In Cr.) (Mus) (in Rs.) (Rs. In Cr.) (Rs. In Cr.) HT-1 Per KVA 111 28,995 200.00 5.22 - 89.59 4.85 43.45 48.67

HT-2(a) Per KVA 905 3,94,677 200.00 71.04 <=100,000 274.39 6.60 181.10 >100,000 273.90 6.80 186.25 905 71.04 548.29 367.35 438.39 HT-2(b) Per KVA 660 96,776 220.00 19.16 <=200,000 146.66 8.25 120.99 >200,000 52.00 8.35 43.42 698 19.16 198.66 164.41 183.57 HT-2c i Per KVA 103 12,033 200.00 2.17 <=100,000 31.13 6.40 19.92 >100,000 8.10 6.80 5.51 103 2.17 39.23 25.43 27.60

HT-2c ii Per KVA 161 47,113 200.00 8.48 <=100,000 103.32 7.40 76.46 >100,000 12.30 7.80 9.59 161 8.48 115.62 86.05 94.53 HT-3(a)i Per HP/Annum 22 15,033 1,240.00 1.86 0.00 15.71 2.25 3.53 5.39

HT-3(a)ii Per HP/Annum 1 250 50.00 0.02 0.00 - 2.25 - 0.02

HT-3(a)iii Per HP/Annum - - 30.00 - 0.00 - 2.25 - -

HT - 3b Per HP 3 500 1,240.00 - 0.00 0.32 4.25 0.14 0.14

HT-4 Per KVA 62 13,267 120.00 1.43 0.00 21.94 6.20 13.60 15.03

HT-5 Per kVA 16 5,520 240.00 1.59 5.50 10.00 5.50 7.09 MSEZ Supply 18.31 5.80 10.62 10.62

GRAND TOTAL 23,70,656 47,96,721 290.81 5,040.54 2,848.40 3,139.21 FC EC FC EC Format-D21 LT-1 20.00 1.07 LT 20.00 1.00 HT-3 20.00 1.00 LT-4a - 1.00HT-1, HT-2b, HT-2c 200.00 1.00 HT-4 80.00 0.50 SEZ 1 HT-2a 200.00 -1.00 HT-5 160.00 1.00 Fy-19 : @ Proposed Tariff Rates (for projected energy sales) Category Part-1: Fixed Charges Part-2: Energy Charges TOTAL Slab Installations Connected FC Rate FC-Amount Slab Consumption EC Rate EC-Amount AMOUNT (No.s) Load (in Rs.) (Rs. In Cr.) (Mus) (in Rs.) (Rs. In Cr.) (Rs. In Cr.) LT-1<=40 - 1,93,372 8545 50.00 0.00 - 41.62 7.58 31.55 31.55 LT-1>40 - 0 - 0.00 - - 0.00 0.00 LT-2(a)(i) First kW 2,90,488 2,73,058 70.00 24.40 First 30 units 200.78 3.65 73.28 # Every additional KW 3,27,571 7,40,392 80.00 71.08 Next 70 units 262.08 5.20 136.28 # Next 100 163.01 7.00 114.11 # > 200 units 107.73 8.30 89.42 #

6,18,059 10,13,451 95.48 733.60 413.09 508.57 LT-2(a)(ii) First kW 6,81,606 6,20,262 55.00 44.99 First 30 units 277.25 3.55 98.42 # Every additional KW 2,52,101 4,81,659 70.00 40.46 Next 70 units 253.47 4.90 124.20 # Next 100 86.89 6.70 58.22 # > 200 units 48.86 7.80 38.11 #

9,33,707 11,01,921 85.45 666.47 318.95 404.40 LT-2(b)(i) Per kW 728 713 105.00 0.09 First 200 8.36 7.50 6.27 # Minimum 1,006 9,627 75.00 0.87 >200 units 2.05 8.75 1.79 #

1,734 10,341 0.96 10.41 8.06 9.02 LT-2(b)(ii) Per KW 1,042 949 90.00 0.11 First 200 1.25 6.95 0.87 Minimum 819 7,528 65.00 0.59 >200 units 5.01 8.20 4.11

1,861 8,477 0.70 6.26 4.98 5.68 LT-3(i) Per KW 97,849 87,086 80.00 9.39 First 50 29.71 8.00 23.77 27,598 1,60,403 - 15.40 >50 213.65 9.00 192.29 1,25,447 2,47,489 24.79 243.36 216.06 240.85 LT-3(ii) Per KW 77,901 69,332 70.00 6.54 First 50 11.93 7.50 8.95 11,640 64,271 - 5.40 >50 113.57 8.50 96.53 89,541 1,33,603 11.94 125.50 105.48 117.42 FC EC FC EC Format-D21 LT-1 20.00 1.07 LT 20.00 1.00 HT-3 20.00 1.00 LT-4a - 1.00HT-1, HT-2b, HT-2c 200.00 1.00 HT-4 80.00 0.50 SEZ 1 HT-2a 200.00 -1.00 HT-5 160.00 1.00 Fy-19 : @ Proposed Tariff Rates (for projected energy sales) Category Part-1: Fixed Charges Part-2: Energy Charges TOTAL Slab Installations Connected FC Rate FC-Amount Slab Consumption EC Rate EC-Amount AMOUNT (No.s) Load (in Rs.) (Rs. In Cr.) (Mus) (in Rs.) (Rs. In Cr.) (Rs. In Cr.) LT-4(a) Per HP 3,17,045 10,50,812 - - - 1,776.44 6.85 1,216.86 1,216.86

LT-4(b) Per HP 289 5,894 70.00 0.50 - 1.21 3.50 0.42 0.92

LT-4 c(i) Per HP 3,508 19,754 60.00 1.42 - 4.88 3.50 1.71 3.13

LT-4 c (ii) Per HP 828 20,109 70.00 1.69 - 4.81 3.50 1.68 3.37

LT-5a Per HP 1,468 5,301 60.00 0.38 First 500 12.50 5.60 7.00 Per HP 3,328 54,584 65.00 4.26 Next 500 22.34 6.55 14.63 Per HP 536 31,916 80.00 3.06 >1000 11.37 6.85 7.79 Per HP 55 6,293 140.00 1.06 5,387 98,094 8.76 46.21 29.42 38.18 LT-5b Per HP 11,430 32,220 55.00 2.13 First 500 13.90 5.50 7.65 Per HP 12,622 1,40,467 60.00 10.11 Next 500 42.01 6.40 26.89 Per HP 1,301 69,104 75.00 6.22 >1000 41.01 6.70 27.48 Per HP 86 9,238 130.00 1.44 25,439 2,51,030 19.90 96.92 62.02 81.92 LT-6a Per HP 15,525 1,04,347 75.00 9.39 - 134.05 5.50 73.73 83.12

LT-6b Per KW 22,679 33,186 90.00 3.58 - 76.23 7.10 54.12 57.70

LT-7a Per KW/Week 13,598 74,717 210.00 18.83 - 18.88 11.00 20.77 39.60 Per HP -

LT-7b Per KW/Week 555 788 80.00 0.08 - 0.52 11.00 0.57 0.65 Per HP - FC EC FC EC Format-D21 LT-1 20.00 1.07 LT 20.00 1.00 HT-3 20.00 1.00 LT-4a - 1.00HT-1, HT-2b, HT-2c 200.00 1.00 HT-4 80.00 0.50 SEZ 1 HT-2a 200.00 -1.00 HT-5 160.00 1.00 Fy-19 : @ Proposed Tariff Rates (for projected energy sales) Category Part-1: Fixed Charges Part-2: Energy Charges TOTAL Slab Installations Connected FC Rate FC-Amount Slab Consumption EC Rate EC-Amount AMOUNT (No.s) Load (in Rs.) (Rs. In Cr.) (Mus) (in Rs.) (Rs. In Cr.) (Rs. In Cr.) HT-1 Per KVA 111 28,995 400.00 10.44 - 89.59 5.85 52.41 62.85

HT-2(a) Per KVA 905 3,94,677 400.00 142.08 <=100,000 274.39 5.60 153.66 >100,000 273.90 5.80 158.86 905 142.08 548.29 312.52 454.60 HT-2(b) Per KVA 660 96,776 400.00 34.84 <=200,000 146.66 8.50 124.66 >200,000 52.00 9.00 46.80 698 34.84 198.66 171.46 206.30 HT-2c i Per KVA 103 12,033 400.00 4.33 <=100,000 31.13 7.40 23.04 >100,000 8.10 7.80 6.32 103 4.33 39.23 29.36 33.69

HT-2c ii Per KVA 161 47,113 400.00 16.96 <=100,000 103.32 8.40 86.79 >100,000 12.30 8.80 10.82 161 16.96 115.62 97.61 114.57 HT-3(a)i Per HP/Annum 22 15,033 1,480.00 2.22 0.00 15.71 3.25 5.11 7.33

HT-3(a)ii Per HP 1 250 70.00 0.02 0.00 - 3.25 - 0.02

HT-3(a)iii Per HP - - - - 0.00 - - - -

HT - 3b Per HP 3 500 1,480.00 0.01 0.00 0.32 5.25 0.17 0.18

HT-4 Per KVA 62 13,267 200.00 2.39 0.00 21.94 6.70 14.70 17.09

HT-5 Per kVA 16 5,520 400.00 2.65 5.50 11.00 6.05 8.70 MSEZ Supply 18.31 6.80 12.45 12.45

GRAND TOTAL 23,70,656 47,96,721 499.41 5,040.54 3,261.31 3,760.72 MESCOM Ltd., Form-D22 Expected Revenue when Proposed Tariff is Introduced for a Part Year

Energy Sales (MU) Revenue (Rs in Crs)

Tariff Sl. No Type of Installation At Current At Proposed At Current At Proposed Category Total Total Tariff Tariff Tariff Tariff MESCOM Ltd., Form-D23A Estimation of Voltage Class wise Cost of Supply FY-17 (Actual)

Voltage Sales Energy Energy Energy Dist. % of Dist. Sales + Loss Loss to be Allocation Power Dist. Trans. Power Aggregate Level (Actuals) Input at Output at Difference Loss Loss with Loss in that carried of loss purchase Loss Loss purchase System each each between reference voltage forward to at IF in % in % at Gen. Loss voltage voltage each to energy class next point Bus in different Level Level voltage input at voltage voltages point each class % voltage level

MU MU MU MU MU % MU MU MU MU MU % % MU MU 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 15

=>66 kV 111.43 5411.61 5300.18 111.43 0.00% 111.43 0.00 0.00 0.00 111.43 0.00% 4.54% 116.73 4.54% 33 kV 89.30 5300.18 5138.37 161.81 72.51 1.37% 90.54 1.24 0.03 1.27 90.57 0.02% 4.54% 94.87 5.14% 11 kV 833.55 5138.37 3929.21 1209.16 294.40 5.73% 884.22 50.67 2.57 53.24 886.79 0.98% 4.54% 928.94 9.32% LT 3673.04 3929.21 3929.21 250.28 6.37% 3922.93 249.89 312.79 562.68 4235.72 10.40% 4.54% 4437.06 15.60% 4707.32 617.19 617.19 5324.51 11.40% 5577.60 15.60% Add (*) 87.10 87.10 4.54% 91.24 Total 4794.42 617.19 617.19 5411.61 11.40% 5668.84 15.43% (*) KPCL / Wheeling

Particulars Unit 110 kV & 33 kV 11 kV LT Total 66 kV Energy Sales as per flow diagram MU 111.43 89.30 833.55 3673.04 4707.32 Dist. Loss MU 0.00 1.27 53.24 562.68 617.19 Net IF energy MU 111.43 90.57 886.79 4235.72 5324.51 Tr. Loss % 4.54% 4.54% 4.54% 4.54% Net Energy at Gen MU 116.73 94.87 928.94 4437.06 5577.60 Dist of enery input % 2.09% 1.70% 16.65% 79.55% 100.00% PP Cost Rs.in Cr. 2541.71 Dist. Of PP Cost Rs.in Cr. 53.12 43.21 423.19 2022.18 2541.70 Dist of enery sales % 2.37% 1.90% 17.71% 78.03% 100.00% Other Cost Rs.in Cr. 806.02 Dist. Of other Cost Rs.in Cr. 19.10 15.31 142.75 629.02 806.18 Total Cost Rs.in Cr. 72.22 58.52 565.94 2651.20 3347.88 Voltage wise COS Ps./unit 6.48 6.55 6.79 7.22 7.11 Avg. Real. Rate Rs./unit 9.78 7.32 7.37 5.50 5.97 % of Real. Rate over VCOS % 151% 112% 109% 76% 84%

Particulars Unit 110 kV & 33 kV 11 kV LT Total 66 kV Energy Sales MU 111.43 89.30 914.76 3678.93 4794.42 Less: Wheeling Energy/KPCL Cons, MU 0.00 0.00 81.21 5.89 87.10 Net Energy Sales MU 111.43 89.30 833.55 3673.04 4707.32 Revenue Realised Rs.in Cr. 108.99 65.34 614.19 2021.39 2809.91 Avg. Realization Rate Rs./unit 9.78 7.32 7.37 5.50 5.97 MESCOM Ltd., Form-D23A Estimation of Voltage Class wise Cost of Supply FY-19 (Projection @ existing Tariff)

MU MU MU MU MU % MU MU MU MU MU % % MU MU 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 15

=>66 kV 111.43 5771.12 5659.69 111.43 0.00% 111.43 0.00 0.00 0.00 111.43 0.00% 3.27% 115.20 3.27% 33 kV 89.30 5659.69 5493.05 166.64 77.34 1.37% 90.54 1.24 0.03 1.27 90.57 0.02% 3.27% 93.63 3.88% 11 kV 852.44 5493.05 4250.64 1242.41 308.76 5.62% 903.20 50.76 2.44 53.20 905.64 0.92% 3.27% 936.25 8.03% LT 3987.37 4250.64 4250.64 257.38 6.06% 4244.59 257.22 331.79 589.01 4576.38 10.21% 3.27% 4731.09 14.22% 5040.54 643.48 643.48 5684.02 11.15% 5876.17 14.22% Add (*) 87.10 87.10 3.27% 90.04 Total 5127.64 643.48 643.48 5771.12 11.15% 5966.21 14.06% (*) KPCL / Wheeling

Particulars Unit 110 kV & 33 kV 11 kV LT Total 66 kV Energy Sales MU 111.43 89.30 852.44 3987.37 5040.54 Dist. Loss MU 0.00 1.27 53.20 589.01 643.48 Net IF energy MU 111.43 90.57 905.64 4576.38 5684.02 Tr. Loss % 3.27% 3.27% 3.27% 3.27% Net Energy at Gen MU 115.20 93.63 936.25 4731.09 5876.17 Dist of enery input % 1.96% 1.59% 15.93% 80.51% 100.00% PP Cost Rs.in Cr. 2661.43 Dist. Of PP Cost Rs.in Cr. 52.16 42.32 423.97 2142.98 2661.43 Dist of enery sales % 2.21% 1.77% 16.91% 79.11% 100.00% Other Cost Rs.in Cr. 1441.22 Dist. Of other Cost Rs.in Cr. 31.85 25.51 243.71 1140.16 1441.23 Total Cost Rs.in Cr. 84.01 67.83 667.68 3283.14 4102.66 Voltage wise COS Ps./unit 7.54 7.60 7.83 8.23 8.14 Avg. Real. Rate Rs./unit 9.78 7.32 7.70 5.93 6.34 % of Real. Rate over VCOS % 130% 96% 98% 72% 78%

MU MU MU MU MU % MU MU MU MU MU % % MU MU 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 15

=>66 kV 111.43 5771.12 5659.69 111.43 0.00% 111.43 0.00 0.00 0.00 111.43 0.00% 3.27% 115.20 3.27% 33 kV 89.30 5659.69 5493.05 166.64 77.34 1.37% 90.54 1.24 0.03 1.27 90.57 0.02% 3.27% 93.63 3.88% 11 kV 852.44 5493.05 4250.64 1242.41 308.76 5.62% 903.20 50.76 2.44 53.20 905.64 0.92% 3.27% 936.25 8.03% LT 3987.37 4250.64 4250.64 257.38 6.06% 4244.59 257.22 331.79 589.01 4576.38 10.21% 3.27% 4731.09 14.22% 5040.54 643.48 643.48 5684.02 11.15% 5876.17 14.22% Add (*) 87.10 87.10 3.27% 90.05 Total 5127.64 643.48 643.48 5771.12 11.15% 5966.22 14.06% (*) KPCL / Wheeling

Particulars Unit 110 kV & 33 kV 11 kV LT Total 66 kV Energy Sales MU 111.43 89.30 852.44 3987.37 5040.54 Dist. Loss MU 0.00 1.27 53.20 589.01 643.48 Net IF energy MU 111.43 90.57 905.64 4576.38 5684.02 Tr. Loss % 3.27% 3.27% 3.27% 3.27% Net Energy at Gen MU 115.20 93.63 936.25 4731.09 5876.17 Dist of enery input % 1.96% 1.59% 15.93% 80.51% 100.00% PP Cost Rs.in Cr. 2661.43 Dist. Of PP Cost Rs.in Cr. 52.16 42.32 423.97 2142.98 2661.43 Dist of enery sales % 2.21% 1.77% 16.91% 79.11% 100.00% Other Cost Rs.in Cr. 1157.32 Dist. Of other Cost Rs.in Cr. 25.58 20.48 195.70 915.57 1157.33 Total Cost Rs.in Cr. 77.74 62.80 619.67 3058.55 3818.76 Voltage wise COS Ps./unit 6.98 7.03 7.27 7.67 7.58 Avg. Real. Rate Rs./unit 10.78 8.32 8.49 7.28 7.58 % of Real. Rate over VCOS % 154% 118% 117% 95% 100%

Particulars Unit 110 kV & 33 kV 11 kV LT Total 66 kV Energy Sales MU 111.43 89.30 933.65 3993.26 5127.64 Less: Wheeling Energy/KPCL Cons, MU 0.00 0.00 81.21 5.89 87.10 Net Energy Sales MU 111.43 89.30 852.44 3987.37 5040.54 Revenue Realised Rs.in Cr. 120.12 74.30 723.36 2900.97 3818.75 Avg. Realization Rate Rs./unit 10.78 8.32 8.49 7.28 7.58 MESCOM Ltd., Form-D24 External Subsidy (Allocation of external subsidy among consumer classes) (Rs in Crs) At Current Tariff Charges for FY-19 At Proposed Tariff Charges for FY-19 Tariff Sl.No Type of Installation Revenue for a full External Subsidy Revenue for a External Subsidy Category year. Directly Assigned full year. Directly Assigned

LT-1 Bhagya Jyothi / Kutir Jyothi 27.09 27.09 31.55 31.55

LT-4a IP Sets (10 HP & Below) 925.53 925.53 1216.86 1216.86

TOTAL 952.62 952.62 1248.41 1248.41 MESCOM Ltd., Annexure-5

Voltage wise cross subsidy surcharge for FY-19 @ proposed tariff. Rs./Unit

Tariff Average Voltage wise Voltage wise Voltage wise Cross Cross Cross Category Tariff Cost of Supply Cost of Supply Cost of Supply Subsidy Subsidy Subsidy @ 66 kV & above at 33 kV at HT Surcharge Surcharge Surcharge level level level @ 66 kV & above at 33 kV at HT level level level HT-1 7.02 6.98 7.03 7.27 0.04 - - HT-2a 8.29 6.98 7.03 7.27 1.31 1.26 1.02 HT-2b 10.38 6.98 7.03 7.27 3.40 3.35 3.11 HT-2c 9.57 6.98 7.03 7.27 2.59 2.54 2.30 HT-3a 4.68 6.98 7.03 7.27 - - - HT-3b 5.63 6.98 7.03 7.27 - - - HT-4 7.79 6.98 7.03 7.27 0.81 0.76 0.52 HT-5 15.82 6.98 7.03 7.27 8.84 8.79 8.55 MESCOM Ltd., Annexure-6(a) MESCOM Ltd., Annexure-6(b)

Cross subsidy for FY-19 (projected) as per existing tariff: Cross subsidy for FY-19 (projected) as per proposed tariff: Rs.in Cr. Rs.in Cr. Tariff Proposed Avg. Avg. Cost Cross Cross Tariff Proposed Avg. Avg. Cost Cross Cross Sales Realization of Suppply Subsidy Subsidy Sales Realization of Suppply Subsidy Subsidy Rate per Unit Amount Rate per Unit Amount

(MU) (Ps/Unit) (Ps/Unit) (Ps/Unit) (Rs.in Cr) (MU) (Ps/Unit) (Ps/Unit) (Ps/Unit) (Rs.in Cr) LT-1=<18 units 41.62 651 814 163 6.79 LT-1=<18 units 41.62 758 758 -0 - LT-1>18 units - - 814 814 - LT-1>18 units - - 758 758 - LT-2 (a) 1,400.07 539 814 275 384.99 LT-2 (a) 1,400.07 652 758 106 148.28 LT-2 (b) 16.67 755 814 59 0.99 LT-2 (b) 16.67 882 758 -124 -2.06 LT-3 368.86 895 814 -81 -29.97 LT-3 368.86 971 758 -213 -78.67 LT-4 (a) 1,776.44 521 814 293 520.50 LT-4 (a) 1,776.44 685 758 73 129.68 LT-4 (b) 1.21 587 814 227 0.27 LT-4 (b) 1.21 760 758 -2 - LT-4 (c) 9.69 522 814 292 2.83 LT-4 (c) 9.69 671 758 87 0.85 LT-5 143.13 731 814 83 11.94 LT-5 143.13 839 758 -81 -11.61 LT-6 (w/s) 134.05 476 814 338 45.26 LT-6 (w/s) 134.05 620 758 138 18.49 LT-6 (st.lt.) 76.23 622 814 192 14.67 LT-6 (st.lt.) 76.23 757 758 1 0.08 LT-7 19.40 1,881 814 -1,067 -20.71 LT-7 19.40 2,075 758 -1,317 -25.54 LT Total 3,987.37 937.56 LT Total 3,987.37 179.50 HT-1 89.59 543 814 271 24.26 HT-1 89.59 702 758 56 5.06 HT-2 (a) 548.29 800 814 14 7.92 HT-2 (a) 548.29 829 758 -71 -38.99 HT-2 (b) 198.66 924 814 -110 -21.86 HT-2 (b) 198.66 1,038 758 -280 -55.72 HT-2 (c) 154.85 789 814 25 3.92 HT-2 (c) 154.85 957 758 -199 -30.88 HT-3(a) 15.71 344 814 470 7.38 HT-3(a) 15.71 468 758 290 4.56 HT-3 (b) 0.32 438 814 377 0.12 HT-3 (b) 0.32 563 758 196 0.06 HT-4 21.94 685 814 129 2.83 HT-4 21.94 779 758 -21 -0.46 HT-5 5.50 1,289 814 -475 -2.61 HT-5 5.50 1,582 758 -824 -4.53 MSEZ Supply 18.31 580 814 234 4.28 MSEZ Supply 18.31 680 758 78 1.43 HT Total 1,053.17 26.24 HT Total 1,053.17 -119.47 LT + HT Total 5,040.54 963.80 LT + HT Total 5,040.54 60.03 Misc., - -59.55 Misc., - -59.55 KPCL/Wheeling consumption 87.10 - KPCL/Wheeling consumption 87.10 - GRAND TOTAL 5,127.64 904.25 GRAND TOTAL 5,127.64 0.48