8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
CONTENTS
• Board of Directors ...... 02
• Notice ...... 03
• Directors' Report ...... 06
• C & AG Comments ...... 24
• Auditors' Report ...... 25
• Balance Sheet ...... 30
• Profit and Loss Account ...... 31
• Cash Flow Statement ...... 32
• Significant Accounting Policies & Notes ...... 34
• Statement relating to Subsidiary Companies ...... 55
• Annual Reports of Subsidiary Companies
1 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
BOARD OF DIRECTORS Shri D.J.Pandian,IAS Chairman Shri L.Chuaungo,IAS Director Shri R.N.Singh Director Shri Bimal.N.Patel Director Smt.Shahmeena Husain,IAS Director(Admn.) Shri Mukesh Puri,IAS Managing Director (up to 2-7-2012) Shri Raj Gopal, IAS Managing Director (from 2-7-2012)
DIG OF POLICE (SECURITY) : Shri V.J.Gautam, IPS
COMPANY SECRETARY Shri Parthiv Bhatt SR. EXECUTIVES BANKERS UCO Bank Canara Bank 1. Shri K.M. Shringarpure State Bank of India Allahabad Bank General Manager (F &A) Bank of India Syndicate Bank 2. Shri K.P.Jangid Central Bank of India Bank of Baroda General Manager(Comm.) Union Bank of India Indian Overseas Bank 3. Shri Y.D.Brahmbhatt Dena Bank Karur Vysya Bank I/c CE (Tech.) Indian Bank Vijaya Bank
STATUTORY AUDITORS COST AUDITORS M/s S.C.Bapna & Associates. M/s. R. K. Patel & Co. Chartered Accountants, Cost Accountants Vadodara. Vadodara.
REGISTERED OFFICE SUBSIDIARY COMPANIES Sardar Patel Vidyut Bhavan 1. Gujarat State Electricity Corp. Ltd Race Course 2. Gujarat Energy Transmission Corp.Ltd Vadodara - 390 007 3. Uttar Gujarat Vij Co. Ltd. Phone: 0265-2310582-86, Fax: 0265-2337918 4. Dakshin Gujarat Vij Co.Ltd web site : www.guvnl.com 5. Paschim Gujarat Vij Co. Ltd. 6. Madhya Gujarat Vij Co. Ltd.
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NOTICE TO SHAREHOLDERS
NOTICE is hereby given that the Eighth Annual General Meeting of the Members of Gujarat Urja Vikas Nigam Limited will be held on Saturday, the 29th December,2012 at 5.00 p.m. at the Registered office of the Company at Sardar Patel Vidyut Bhavan, Race Course, Vadodara-390 007 to transact the following business:
ORDINARY BUSINESS:
1 To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2012 and Profit & Loss Account for year ended on that date along with notes forming part of the same and the Reports of the Board of Directors, Statutory Auditors thereon along with Comments, if any, of the Comptroller and Auditor General of India.
2. To appoint a Director in place of Shri Bimal Patel, who retires by rotation and is eligible for reappointment
3. To decide the remuneration payable to Statutory Auditors appointed by the Comptroller and Auditor General of India(C&AG), New Delhi for the financial year 2012-13.
SPECIAL BUSINESS:
4. To consider and if thought fit, to pass ,with or without modification(s),the following Resolution as an Ordinary Resolution:
“RESOLVED THAT Shri Raj Gopal,IAS who was appointed as an Additional Director of the Company effective from 2nd July,2012, under section 260 of the Companies Act,1956 and who holds such office up to the date of this Annual General Meeting and who is eligible for reappointment , be and is hereby appointed as a Director (Continuing as Managing Director) of the Company."
By Order of the Board
Date: 13 -12-2012 Parthiv Bhatt Place: Gandhinagar Company Secretary
REGISTERED OFFICE : Sardar Patel Vidyut Bhavan Race Course Vadodara – 390 007
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NOTES:
1. A MEMBER ENTITLED TO ATTEND AND VOTE, AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF. A PROXY NEED NOT BE A MEMBER OF THE COMPANY.
2. Proxies, in order to be effective must be received by the Company at its Registered Office not later than 48 hours before the time for holding of the meeting.
3. Explanatory Statement pursuant to the provisions of Section 173(2) of the Companies Act,1956 is annexed hereto as Annexure to the Notice.
4. The Statutory Auditors M/s S.C.Bapna & Associates, Chartered Accountants, Vadodara were appointed by the Office of the Comptroller and Auditor General of India (C & AG) for F.Y.2011-12 . M/s. S.C. Bapna & Associates, Chartered Accountants, Vadodara have been reappointed as the Statutory Auditors of the Company for the financial year 2012-13 by the office of C & AG as the Company continues to attract the provisions of Section 617 read with the provisions of section 619 (2) of the Companies Act, 1956. As per the provisions of the section 224(8)(aa) of the Companies Act remuneration of Statutory Auditors appointed by the C&AG of India shall be fixed by the Company in General Meeting or in such manner as the Company in General meeting may determine.
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ANNEXURE TO THE NOTICE : Explanatory Statement pursuant to Section 173(2) of the Companies Act,1956
Item No. 4 The Government of Gujarat vide GAD Notification No. AIS/35.2012/20/G dated 27th June ,2012 placed the services of Shri Raj Gopal, IAS to the disposal of Energy and Petrochemicals Department for appointment as Managing Director, Gujarat Urja Vikas Nigam Limited vice Shri Mukesh Puri, IAS transferred. Further Energy and Petrochemicals Department,Govt. of Gujarat vide letter No. GUV-14- 2012-1948-K dated 28th June,2012 directed GUVNL to take further necessary action for appointment of Shri Raj Gopal, IAS as Managing Director of the Company in terms of the provisions of Articles of Association of GUVNL. Accordingly Shri Raj Gopal,IAS was appointed as an Additional Director pursuant to section 260 of the Companies Act,1956 and w.e.f. 2nd July, 2012. He holds office as an Additional Director up to the date of this Annual General Meeting(AGM). Shri Raj Gopal,IAS was also appointed as Managing Director of the Company w.e.f. 2nd July,2012. On his appointment as Director at this Annual General Meeting , he will continue to be the Managing Director of the Company. Shri Raj Gopal is a senior IAS officer of 1987 batch. He has held various important positions in the Government. He has long, rich and varied experience of administration in various areas. Your Directors, therefore, recommend the resolution for your approval. None of the Directors, except Shri Raj Gopal, IAS is interested or concerned in this resolution.
By Order of the Board
Date: 13 -12-2012 Parthiv Bhatt Place: Gandhinagar Company Secretary
REGISTERED OFFICE : Sardar Patel Vidyut Bhavan Race Course Vadodara – 390 007
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DIRECTORS’ REPORT To, The Members, Your Directors are pleased to present the EIGHTH ANNUAL REPORT together with Audited Accounts for the Eighth Financial Year ended 31st March, 2012. FINANCIAL RESULTS: The Company was operationalized w.e.f. Financial Year 2005-06. The Company has continued the efforts to sustain the performance and growth momentum over the years. The financial results of the F.Y. 2011-12 are as under: Sr. [` in Lakhs] Particulars No. 2011-12 2010-11 1 Total Turnover 2485600.65 2031505.69 2 Total Expenditure 2472302.95 2018935.95 3 Profit Before Tax 13297.70 12569.74 4 Provisions for Income tax - - Current Year(MAT) 2720.00 2600.00 - Past Years 3848.35 2400.00 5 Profit After Tax 6729.35 7569.74 6 Carried forward loss of erstwhile GEB (52367.22) (59936.96) 7 Balance carried to Balance Sheet (45637.87) (52367.22) Considering the total income of ` 2485601 Lakhs and total expenditure of ` 2472303 Lakhs, the Company has earned Profit Before Tax (PBT) of ` 13298 Lakhs as against ` 12570 Lakhs in the previous year. Since the Income Tax Act provides for payment of Minimum Alternate Tax (MAT) on book profit, a provision of ` 2720 Lakhs is made towards MAT liability (Previous Year ` 2600 Lakhs). In addition, on account of additional demand from the Income Tax Department in respect of Assessment Year 2009-10 due to disallowance of interest expenditure for A .Y. 2007-08 towards disallowance of other expenditure and for A Y 2008-09 towards disallowance of FBT expenditure, a provision of ` 3848 Lakhs is made to take care of these liabilities though the Company has contested these demands (Previous Year ` 2400 Lakhs). This leaves a Profit After Tax (PAT) of ` 6730 Lakhs as against ` 7570 Lakhs in the previous year. Since the Company inherited a loss of ` 73724 Lakhs from erstwhile GEB, despite net profit for the 7 consecutive years, the Company has to carry forward a loss of ` 45637 Lakhs (Previous Year ` 52367 Lakhs). SHARE CAPITAL: During the year 2011-12, 60,82,00,000 no. of equity shares of `10/- each were allotted to Govt. of Gujarat against capital contribution to GUVNL for Capital Infusion in Subsidiary Companies / implementation of Govt. Schemes pursuant to various Govt. of Gujarat Resolutions. The paid up capital as on 31-03-2012 is ` 4551.80 Crores. The Authorized Capital of the Company has been increased from ` 5000/- crores to ` 10,000/- crores divided into 1000/- crore equity shares of ` 10/- each considering the future infusion of capital by the Govt. of Gujarat.
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SECTORAL PERFORMANCE : This is the 7th year post operationalization of the Companies. The performance of GUVNL and its subsidiary companies (sector) as a whole has sustained momentum. The Sector continued various measures to improve the financial health as well as the internal efficiencies. Resultantly the Sector has recorded a profit after tax of Rs 62,376/- Lakhs for the year 2011-12 as against profit of Rs. 53,289 Lakhs for the year 2010-11 a rise of 17%. A summarized sectoral performance is given hereunder: Sr. [` in Lakhs] Particulars No. 2011-12 2010-11 1. Total Turnover 2630441 2189462 2 Total Expenditure 2547083 2116179 3 Profit Before Tax 83358 73283 4 Provision for Income Tax : Current 17132 17622 Past year 3848 2370 Wealth tax 2 2 5 Profit After Tax 62,376 53,289
DIVIDEND: The company being in consolidation phase and having carried forward losses, your Directors do not recommend any dividend on Equity Shares for the financial year 2011-12. INDUSTRY OVERVIEW : Availability of quality power at reasonable rates is essential for sustained socio economic development. The economic growth of the country is very closely linked with that of Power Sector. However, being highly capital intensive in nature, mobilizing adequate financial resources at competitive cost for developing generation, transmission and distribution infrastructure has always been a challenge for the Power Sector; and this has been a major factor that contributed to less than required generation and transmission capacity addition in the Country. Although electricity generation has increased substantially in recent years, the demand for electricity in India is still substantially higher than the available supply. The data of Nation as a whole with respect to gap between demand and supply is given in following table: Fiscal Energy Requirement Energy Availability Energy Shortage Year (Million units) (Million units) (Million units) (%) 2007-08 737052 664660 72392 9.8 2008-09 777039 691038 86001 11.1 2009-10 830594 746644 83950 10.1 2010-11 861591 788355 73236 8.5 2011-12 (Up to November, 613869 569081 44788 7.3 Provisional) Source: - Ministry of Power Annual Report 2011-12.
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POWER SUPPLY POSITION IN THE STATE : The total generating capacity of the various sources at the beginning of the year 2011-12 was 13134 MW. The total installed power generating capacity in the state at the end of year 2011-12 is as under:- IN MW State Pvt Central Addition Total Plants GSECL Owned IPP Sector Sector during year Gujarat Thermal 3720 750 2000 1605 1821 9896 Gas 729 466 2102 424 351 4072 Nuclear - - - 559 - 559 Hydro 547 - - 232 - 779 Total 4996 1216 4102 2820 2172 15306
During the year 2011-12, from Central Sector, one unit of Sipat Thermal Power Station Unit I and one unit of Sipat Thermal Power Station Unit II was commissioned, out of which Gujarat’s Share is 180MW each. Further, from Private IPPs, 135MW of M/s Aryan Coal Benefication (Gujarat’s Share 100MW), 800MW of Mundra UMPP – CGPL (Gujarat’s Share 361 MW), 660MW of APL Mundra (Gujarat’s Share 500MW) and 600MW of Essar Power Gujarat Ltd - Salaya (Gujarat’s Share 500MW) were commissioned. Further, GSEG Expansion - Gas Based Project with capacity of 351MW was synchronized during 2011-12. The total installed capacity from non conventional energy sources at the end of 2011-12 was 3526 MW as against 2116 MW in 2010-11, the details of which are as under :-
IN MW Sr. Renewable Energy 2010-11 Addition during 2011-12 No. Source the year 1 Wind 2094 790* 2884 2 Solar PV 6 599 605 3 Biomass 10 21 31 4 Mini / Small Hydel 6 - 6 TOTAL 2116 1410 3526 * Note: Including Wheeling
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PURCHASE OF POWER : For meeting the demand of power in the State, power is purchased from all the available sources. The details of power purchased during the years 2010-11 and 2011-12 is as under:- Sr. No. Name of Agency 2010-11 (MUs) 2011-12 (MUs) 1 NPC 2998 3850 2 NTPC 13312 13642 3 SSNNL 562 680 TOTAL CENTRAL SECTOR (1 to 3) 16872 18172 4 GSEG 990 866 5 GIPCL – Stage II 819 652 6 GIPCL – SLPP 2304 2547 7 GMDC 991 712 8 GSECL 25164 25951 TOTAL STATE SECTOR (4 to 8) 30268 30728 9 ESSAR 1489 1375 10 GPEC 3587 3009 11 ADANI - Mundra Power Project 6168 9367 12 ACB India Ltd - 130 TOTAL IPPs (9 to 12) 11244 13881 13 Solar 2 164 14 Wind 1544 2325 15 Other Renewables 19 87 16 CPP & Others 523 470 TOTAL OTHERS (13 to 16) 2088 3046 TOTAL POWER PURCHASE 60472 65827 SALE OF POWER : The bulk power purchased by GUVNL has been supplied to the Subsidiary Distribution Companies to meet their power requirement. The details of power supplied to subsidiary distribution companies and licensees during the year 2010-11 and 2011-12 are as under:- Sr.No. Name of Licensee 2010-11 (MUs) 2011-12 (MUs) 1 DGVCL 12402 13359 2 UGVCL 16774 17933 3 PGVCL 22625 25041 4 MGVCL 8612 9466 5 Kandla Port Trust 41 28 TOTAL 60454 65827
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POWER TRADING BUSINESS DURING THE YEAR: Owing to the substantial capacity addition, GUVNL has become power surplus. GUVNL has disposed of surplus power to other states to avoid the situation of keeping machine idle, to optimize power generation and to reduce overall power purchase cost. GUVNL has sold the surplus power through bilateral agreements as well as through Power Exchanges. The power sold outside the state through bilateral arrangement and power exchanges during the year 2011-12 was 5815 MUs amounting to ` 2182 crores at an average rate of ` 3.75/unit as against 4191 MUs amounting to ` 1628 crores at an average rate of ` 3.88/unit during the year 2010-11. SUPPLY / DEMAND SCENARIO : The installed capacity from conventional sources in the State has increased from 13134 MW to 15306 MW at the end of 11th Five Year Plan (as on 31.3.2012) against the peak level demand of 11500 MW. Capacity to the tune of 10770 MW is planned to be added in 12th Five Year plan (out of which 1141 MW has already operationalised) and installed capacity would be doubled by the end of 12th Five Year Plan. FORAY IN SOLAR POWER : To encourage Renewable Energy and to address the concern of climate change & depleting fossil fuel reserve, GUVNL has initiated the steps to harness the clean and green energy. GUVNL has signed Power Purchase Agreements for 971.5 MW capacity in FY 2010-11. 6 MW capacity is commissioned in FY 2010-11. Total 690 MW capacity is commissioned up to August 2012 and balance is likely to be commissioned during FY 2012-13. Asia’s largest Solar Park located at village Charanka in North Gujarat over a spread of 2000 hectare of barren land is envisaged with prospects of concentrated solar power generation capacity of 600 MW. In this endeavor 214 MW solar capacity has already been commissioned. Venture in the direction of using technology for saving scarce water resources simultaneously with obtaining Solar energy in form of Canal based Solar Power Projects are being undertaken by the State Owned Company. This canal solar model will address two most pressing global challenges - energy security and water security. This is just a first step towards giving energy security for future generations by introducing ingenious means. STATUS OF IMPLEMENTATION OF INTRA-STATE ABT : Intra State ABT has already been operationalised with effect from 5.04.2010 pursuant to Hon’ble GERC Order dated 2.04.2010. Utilities are monitoring their generation/drawl schedules and any deviation from schedules is accounted for as Unscheduled Interchange (UI) and having financial implications individually. Gujarat State Load Despatch Centre is carrying out Energy Accounting and UI Accounting. TRANSMISSION CHARGES : GUVNL also pays for the transmission of the power within the State to Gujarat Energy Transmission Corporation (GETCO) which is the Company responsible for transmission of power. The transmission charges for transmission of power from the Central Sector Generating Stations through the Central Transmission Utility – PGCIL owned lines are determined by the Central Electricity Regulatory Commission and GUVNL is sharing the transmission charges in accordance with the methodology specified by the CERC under the Regulations for Terms & Conditions of tariff as amended from time to time.
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PROGRESS OF VARIOUS GOVT. SCHEMES : I. ELECTRIFICATION UNDER TRIBAL AREA SUB-PLAN : Electricity is a basic requirement for establishing the infrastructure in the developing economy leading to socioeconomic transformation in the Rural Area. The Distribution Companies of Gujarat Urja Vikas Nigam Ltd. undertake the work of Rural Electrification in the Tribal Areas under Tribal Area Sub-Plan(TASP). The TASP scheme is financed by State Government for electrification of villages and also extensive electrification of petaparas of the villages electrified earlier. From the year 1998-99 Govt. is providing grant under this scheme for electrification of petaparas and Agricultural wells. All inhabited tribal villages feasible for electrification have been electrified along with 100% village electrification in the State. Grant of ` 32200.00 lakhs was given to GUVNL for the year 2011-12 to electrify 11800 No of wells, Electrification of 48 conversion villages and 150 No of petaparas, against this at the end of March-12,13762 No of wells,146 No of petaparas were electrified and Electrification of 48 conversion villages was done for which total expenditure of ` 32200.57 lakhs was incurred, Thus GUVNL has achieved 100% financial target under this scheme. II. TRIBAL AREA SUB-PLAN (TASP) TRANSMISSION AND SUB STATIONS: Electricity is basic requirement for establishing infrastructure in developing economy leading to socio-economic transformation in Tribal rural area. In the tribal area such works are carried by the Company through its transmission subsidiary company (GETCO) along with Normal Static Plan work under TASP Scheme. For execution of the scheme grant is given by the State Govt. The Transmission Company (GETCO), the subsidiary company of GUVNL, executes the infrastructure work for development of the Tribal Area by creation of new substations with associated lines, link lines for system improvement and addition of installed capacity of existing substations. During the Financial Year 2011-12 an amount of ` 16000/- lakhs was given as grant by the State Govt. for creation of new sub-stations and associated lines, link lines for system improvement and addition of installed capacity of existing substations under the Tribal Area Sub Plan (TASP). An expenditure of `16023.45 lakhs is incurred in creation of 66 KV Sub-stations and transmission lines in tribal areas of Gujarat. The financial target is achieved. SUBSTATIONS COMMISSIONED 1 66KV Duttnagar (Bheskhetar) Dist - Bharuch Commissioned on 05.11.11 2 66KV Balwada (Wagaldhara) Dist - Navsari Commissioned on 03.01.12 3 66KV GIDC-Vapi Ph.-II Dist - Valsad Commissioned on 28.01.12 4 66KV Kocharva (Rata-Koparli) Dist - Valsad Commissioned on 06.03.12 5 66KV Piprol(Pangarbari -Wilson Hill) Dist - Valsad Commissioned on 20.03.12
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6 66KV Vadoli Dist - Surat Commissioned on 21.03.12 7 66KV Palgam Dist - Valsad Commissioned on 26.03.12 8 66KV Sahuda Dist - Valsad Commissioned on 29.03.12 9 66KV Subir Dist - Dang Commissioned on 30.03.12 10 66KV Kathla Dist – Dahod Commissioned on 31.01.12 11 66KV Bhayla Dist – B.K. Commissioned on 27.01.12 12 66KV Vanar Dist - Vadodara Commissioned on 04.07.11 13 66KV Zagadiya Dist - Bharuch Commissioned on 08.11.11 14 66KV Vadpara (Naranpura) Dist – Tapi Commissioned on 05.08.11 15 66KV Sarbhon Dist – Surat Commissioned on 04.07.11 16 66KV Afwa (Dungar) Dist – Surat Commissioned on 25.07.11 17 66KV Lingad (Earthan) Dist – Surat Commissioned on 02.11.11 18 66KV Karjan Dist – Surat Commissioned on 22.03.11 Total 18 Nos. of Substations is commissioned. (B) TRANSMISSION LINES COMMISSIONED 1 400 KV Asoj-Ukai LILO to Kosamba (2x32) - 27.168 CKM Commissioned on 31.12.11 2 220KV Ukai - Kosamba line - 43.52 CKM 3 220KV Kosamba- Mobha line - 48.5 CKM (2x88.398) 4 66KV Songadh-Jamkhadi line - 22.0 CKM Commissioned on 29.04.12 5 66KV LILO to Vapi-Motapondha at Paria - 11.13 CKM Commissioned on07.05.11
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6 66KV Santroad - Rajayata line, - 27.15 CKM Commissioned on 20.05.11 7 LILO of 66 KV Valia - Netrang at 66 KV Duttnagar - 1.2 CKM Commissioned on 05.11.11 8 66 KV LILO of Chikhali-Dungari at Balvada - 1 CKM Commissioned on 09.12.11 9 66KV Virampur - Bhayala - 7.3 CKM Commissioned on 03.08.11 10 66KV LILO at Vanar from 66KV Vasedi-Panwad - 9.2 CKM line Commissioned on 09.06.11 11 66KV, S/C line using Single core, 300 Sq mm, - 0.4CKM (3+1) XLPE power cable from 220 kV Zagadia S/S to at the switch yard of M/s. Birla Century GIDC Zagadia Commissioned on 28.12.11 12 66KV LILO to 66KV Erthan S/S from Vav-Vanz - 4.4 CKM Sachin B Commissioned on 09.07.11 13 66 KV Ahwa-Saputara line - 25.9 CKM Commissioned on 17.02.12 14 66kV D/c line from Solar Site of M/s GIPCL, - 12 CKM Mangrol to 66kV Mosali GETCO S/s Commissioned on 21.01.12 Total 240.8 CKM transmission line is commissioned III. KUTIR JYOTI SCHEME Gujarat Government is providing grant to give single point residential lighting connection in Tribal area free of cost. The BPL family or family whose annual income is less than Rs.36000 for urban area and Rs.27000 for Rural area is eligible to avail single phase lighting connection. The list of beneficiaries is to be prepared by project Officer for Tribal area and to be submitted to concern Distribution Company of GUVNL. Kutir Jyoti connection is given to the beneficiary house situated up to 100 meters from the existing Low Tension line. Beneficiary has to pay the energy bill. This Scheme is in operation from the year 1990-91. Grant of Rs. 500.00 lakhs was given to GUVNL to electrify 14400 Nos.of Kutir Jyoti connection for the year 2011-12.Aagainst this at the end of March-12, 11953 Nos. of Kutir Jyoti connection were given at a cost of Rs.502.24 lakhs,Thus GUVNL has achieved 100% financial target under this scheme. IV. ZUPADA VIJLIKARAN SCHEME To meet the basic requirement of poor family of any caste located in Gujarat State, Government of Gujarat has sponsored Zupadpatti Scheme (Hutments). Under this scheme single phase
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Connections with one point wiring is being given free of cost with CFL bulb. The BPL family or family whose annual income less than Rs.36000 for urban area and ` 27000 for Rural area is eligible to avail Single phase lighting connection. The list of beneficiaries is to be prepared by District Social Welfare Officer/ Taluka Panchayat for rural area and Chief Officer/Municipal Commissioner for Urban area and to be submitted at concerned field office of DISCOM. List of beneficiaries is prepared at local level by above authority by collecting Registration fees. For rural area the beneficiaries have to pay Rs.50/- and for urban area the beneficiaries have to pay Rs.100/- as registration fees. The beneficiaries will have to pay energy bills for energy utilized regularly as per the company’s norms. Grant of ` 6000.00 lakhs was given to GUVNL to electrify 52800 Nos. of house holds connection for the year 2011-12. Against this at the end of March-12,79248 Nos. of house holds connection were given at an expenditure of `6004.92 lakhs, thus GUVNL has achieved 100% financial target under this scheme. V. SCHEDULED CASTE SUB PLAN SCHEME For electrification of Schedule Caste Localities, State Govt. is allocating the fund as grant to GUVNL every year for implementing the program under schedule cast sub plan scheme. From the year 1998-99, this fund is being made available to GUVNL the electrification (including intensive electrification) is being carried out every year in the localities from where demands are coming. A provision of ` 500.00 lakhs was made by the State Govt. for electrification of 10000 Nos. of house holds of SC beneficiaries. However due to non availability of sufficient beneficiaries the budgetary provision was revised to `175 lakhs to electrify 6000 house holds. Against this at the end of March-12, 7376 Nos. of house holds of SC beneficiaries were electrified at a cost of `210.89 lakhs, Thus GUVNL has achieved 100% Physical target under this scheme. VI. SAGARKHEDU SARVANGI VIKAS YOJANA Humidity and the saline atmosphere of the Coastal area cause corrosion of Conductors, corrosion of Poles, failure of Disk and Pin insulators, corrosion of Distribution Boxes, service lines, etc. which in turn affect the quality of power supply. Therefore to improve the infrastructure and uplift the life of the people living in the coastal belt, State Government has declared “Sagarkhedu Sarvangi Vikas Yojana” This Scheme is a 12 point Programme, Energy Development is one of them. This Scheme covers 12 Coastal Districts namely Valsad,Navsari, Surat, Bharuch, Anand, Ahmedabad, Jamnagar, Junagadh, Porbandar, Kutchh, Bhavnagar and Amreli comprising of 38 Talukas. Under this scheme activities such as Strengthening of Distribution line, Strengthening of Transmission Line with Replacement of Conductors, Erection of new 66 KV Substations are carried out. Due to these activities people residing in coastal belt get benefit such as noticeable reduction in line faults, availability of quality power supply at adequate Voltage, reduction in losses to the Industries in coastal area, reduction in accidents due to breakage of Conductors, reduction in Transformer failure and reduction in burning of electric motors, reduction in maintenance cost of lines, reduction in Transmission and Distribution losses. During the year 2011-12, ` 23395.82 lakhs have been spent for strengthening of distribution line with replacing Conductors, poles, insulators, distribution boxes, service lines, etc, Strengthening of Transmission lines and creation of new 66 KV sub stations and electrification of new Ag wells from the contribution of ` 22048.00 lakhs received from the State Govt. in the form of equity share capital and grant.
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VII. JYOTI GRAM YOJANA The Jyoti Gram Yojana (JGY) is a scheme by Government of Gujarat to make available three phase quality power supply for 24 hours to all the villages and their Hamlets for non agricultural activities while ensuring improved quality power supply to agriculture implemented in a record time of just 30 months! The scheme started in September 2003 and completed by March 2006. The scheme involved laying of a parallel rural distribution network across the state to separate agricultural consumers to facilitate load management and regulate agricultural consumption without affecting power supply to other consumers by laying 78,454 Kilometers of new lines , 2257 Nos of JGY Feeders, 18,724 nos of new transformer centers and 4530 Nos of Special Design Transformers have been installed. All 18000 villages are covered under the scheme with a total expenditure of ` 129029.72 lakhs out of which ` 111037.43 lakhs is the contribution from GOG. Thus all 18000 villages have benefited from the scheme. VIII. RAJIV GANDHI VIDYUTIKARAN YOJANA (RGGVY) Under this Central Government Scheme, Rural Electrification Corporation will provides 90% of the expenditure as grant and 1O% as soft loan to State Government. State Government has to provide analogous electricity to urban and rural areas. The financial assistance is provided for electrification of villages, petaparas. All Below Poverty Line families are covered under the scheme and they are provided electricity connection free of cost. Electrification of all beneficiaries includes one point wiring in the house with one CFL bulb. The beneficiaries have to pay the bills for energy utilized regularly as per the company’s norms. During the year 2011-12, 107159 BPL households have been electrified. IX. RESTRUCTURED ACCELERATED POWER DEVELOPMENT AND REFORMS PROGRAMME. (RAPDRP) UNDER XITH PLAN The RAPDRP schemes are to be implemented in towns during XI Five year plan as per GoI order dated: 19.09.2008. The RAPDRP scheme is divided in to three parts i.e. Part-A, Part-B and Part C. The provision under RAPDRP for nation as whole, towards Part A is ` 10,000 Crs, Part B ` 40,000 Crs and Part C ` 1177 Crs. during the 11th Five Year Plan. The nodal agency for implementing APDRP is Power Finance Corporation Limited - PFC, New Delhi. The subsidiary companies of Gujarat Urja Vikas Nigam Ltd i.e. Dakshin Gujarat Vij Company Limited (DGVCL), Madhya Gujarat Vij Company Limited ( MGVCL), Paschim Gujarat Vij Company Limited (PGVCL), Uttar Gujarat Vij Company Limited (UGVCL) are entitled for Part A and Part B. z The part-A consists of converting existing system in to IT base, including consumer indexing, DTR metering etc. This part is to be implemented within 3 years to avail the benefit of loan as grant; otherwise it will be treated as loan only. z Total scheme include Data center, Disaster Recovery center, Customer care center, GPS survey, Consumer Indexing, AMR for DTR&HT consumers,GPRS Modem, Hand Held quipment,Computers ,Printers, Servers for Data Center & disaster center , Server at sub division for AMR,Upgradation of existing Network, connectivity Softwares for new applications as mentioned above etc. All the four DISCOMs viz. DGVCL, MGVCL, PGVCL and UGVCL have submitted their proposals for part A of RAPDRP to Nodal Agency for implementing RAPDRP - Power Finance Corporation
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Ltd., Ministry of Power New Delhi on 10.02.2009 amounting to ` 30.81 Crores, ` 89.49 Crores (including Data and Disaster Recovery Center cost), ` 75.26 Crores and ` 35.11 Crores and sanctioned by M/S PFC respectively Amount of ` 68.00 Crores released by PFCL against total amount of ` 230.72 Crore under Part-A. Expenditure incurred under Part-A by end of 2011-12 is amounting to ` 34.025 Crore. The Part-B consists of renovation, modernization and strengthening of 11 KV system including Reconductoring, load bifurcation, feeder separation, HVDS, Replacement of Electro Magnetic energy meters with tamper proof electronic meters along with strengthening of weak sub transmission system if required. The loan shall be converted to grant up to 50% if target of AT&C loss is achieved in the project areas and the project is completed within stipulated time; otherwise it will be treated as a part of central assistance to State. The DPR of the Part – B projects were submitted by all DISCOMs viz. DGVCL, MGVCL, PGVCL and UGVCL amounting to ` 200.56 Crores, ` 102.73 Crores, ` 665.60 Crores and ` 24.62 Crores and sanctioned by M/s PFC ltd respectively. Amount of ` 130.94 Crores released by PFC Ltd. against total amount of ` 993.51 Crore under Part-B. Expenditure incurred under Part-B by end of 2011-12 is amounting to ` 155.23 Crore. The Part C is to be implemented by MOP / PFC. X. KISAN HEET URJA SHAKTI YOJANA ( KHUSHY- HVDS) KHUSHY is a High Voltage Distribution System of installing smaller size of Distribution Transformers and thereby reduction of LT Lines up to negligible level by converting it into HV Line. In rural area the existing distribution systems consists of 11KV Lines with lengthy 3 Ph 4 wire LT lines. In this system, the Line Losses are very high; Voltage profile and reliability are also unsatisfactory. To improve Voltage profile in rural area the small capacity of Distribution Transformers are to be installed by extending 11KV Line as nearer to the load as possible and Distribution Transformer of the capacity of 10, 16 KVA are erected and supply is released to consumer through a short length of LT Lines preferably through insulated overhead cables known as Aerial Bunched Cable (ABC)/PVC Cable.In Order to ensure pilferage free system, one of several remedial measures is reducing LT line (System) being exposed to theft. The whole idea is to have Less LT system and gradually move on to LT Less system. Even the short LT Lines are to be laid using ABC /PVC Cables. During the year 2011-12, 10646 Nos. of small capacity transformers installed under KHUSHY at the expenditure of ` 154.18 Crores. (2260 Nos. of small capacity transformers installed under KHUSHY-Energy Conservation at the expenditure of ` 29.95 Crores.). With contribution from State Govt. of ` 154 Crores in the form of equity share capital and grant. AWARDS/PRIZES : The State of Gujarat and GUVNL and Subsidiary Companies received various awards/prizes for various achievements in the Energy Sector. The details are given hereunder. ¼Subsidiary Company PGVCL has won National Award for Excellence in Cost Management 2010 given by The Institute of Cost and Works Accountants of India on 18-07-2011
¼Govt. of Gujarat has won 5th Enertia Award 2011 under Category VIII: Top Investment & Infra Excellent State for Energy & Power given by Falcon Media on 14-10-2011.
16 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
¼Subsidiary Company GETCO has won 5th Enertia Award 2011 under Category III: Utilities and T&D Awards –Award for best performing Utility- State, given by Falcon Media on 14-10-2011. ¼Subsidiary Company PGVCL has won India Power Awards-2011 for Overall Utility Performance- Distribution- Non- Urban given by The Council for Power Utility, New Delhi on 24-11-2011 ¼Subsidiary Company PGVCL has won India Power Awards-2011 for Innovative IT and Metering Application given by The Council for Power Utility, New Delhi on 24-11-2011 ¼Subsidiary Company UGVCL has won India Power Awards-2011 for Woman in Power Sector (Mrs. Chhaya Desai, ACE, Sabarmati) given by The Council for Power Utility, New Delhi on 24-11-2011 ¼Govt. of Gujarat has won Power Excellence Award 2011 for Excellence in Power Sector Reforms- Rating of Power Utilities 2011 – State owned given by Indian Chamber of Commerce, Kolkata on 28-11-2011 ¼Subsidiary Company MGVCL has won National Award for meritorious performance 2009-10 for performance of Distribution Company given by Ministry of Power, New Delhi on 22-03-2012 ¼Subsidiary Company GETCO has won National Award for meritorious performance 2009-10 for early completion of 220 kv Bhat Sub Station given by Ministry of Power, New Delhi on 22-03- 2012 ¼Subsidiary Company UGVCL has won National Award for meritorious performance 2010-11 for Performance of Distribution Company given by Ministry of Power, New Delhi on 22-03-2012 ¼Govt. of Gujarat has won Power Line Award 2012 for most progressive State given by Power Line Publisher on 15-05-2012 ¼Subsidiary Company MGVCL has won Power Line Award 2012 (1st) for Best Performing State DISCOM Award for outstanding performance in the India Power Sector given by Power Line Publisher on 15-05-2012 ¼Subsidiary Company UGVCL has won Power Line Award 2012 (Runners up) for Best Performing State DISCOM Award for outstanding performance in the India Power Sector given by Power Line Publisher on 15-05-2012 ¼Subsidiary Company GETCO (Rank 3rd ) has won 9th National Award for excellence in Cost Management-2011 for Excellence in Cost management-2011 (Catagory- Public sector - Large- Service Industry) given by The Institute of Cost Accountants of India ¼Subsidiary Company GETCO has won IPPAI Power Award-2012 for the Best power Transmission Company in the category of significant contribution of Power Transmission Company- State Transmission Companies as well as Private Transmission Companies given by Independent Power Producers Association of India on 24-08-2012 ¼Govt. of Gujarat has won IPPAI Power Award-2012 for the Best performing State in the Power Sector given by Independent Power Producers Association of India on 24-08-2012 ¼Subsidiary Company MGVCL has won India Power Awards-2012 for Overall Utility Performance- Distribution given by the Council for Power Utility, New Delhi
17 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
E-URJA PROJECT: END-TO-END IT SOLUTION FOR GUVNL AND ITS SUBSIDIARIES e-Urja, an end to end IT solution has been implemented in GUVNL and all its subsidiaries. Following major activities related to e-Urja have been carried out during this year 2011 – 2012. 1) Beehive mail messaging solution was implemented with the help of TCS in GSECL, GETCO and GUVNL on the existing servers as Oracle Collaboration Suite (OCS), a mail messaging solution which came bundled with e-Urja became obsolete. 2) Data storage capacity of PGVCL is enhanced by attaching OCS Storage space at e-Urja Datacenter. 3) Uptil now, our all company websites were outsourced for hosting and maintenance work which was causing some challenges. Also, websites are linked to e-Urja and R-APDRP applications involving e-Payment and customer care. For the first time, WEBSITES of GUVNL and its subsidiary Companies are hosted and maintained in-house. 4) e-Urja applications’ and Database Annual Technical Support (ATS) has been renewed directly from M/s. Oracle. 5) A capacity building sessions were held with the help of TCS for all implemented modules along with Database Administration Activity training to almost 167 employees in functional areas and around 87 IT employees in technology area identified from all subsidiary companies with an objective to handle certain aspect of the maintenance support independently. 6) E-Payment application was strengthened with more facilities like insta-pay, quick pay and payment online through ATP machines. 7) Network Intrusion Prevention System (NIPS) has been procured for installation in Datacenter of e-Urja project to protect the entire network against external threats and various other gateways. 8) Concerted efforts have been made by GUVNL ISMS team to cover all the desktops of GUVNL and its subsidiary companies under the umbrella of Domain so as to push Anti Virus updates and CA clients for managing inventory and better administration. GETRI ACTIVITIES : Gujarat Energy Training and Research Institute (GETRI) is an autonomous institute promoted by Gujarat Urja Vikas Nigan Limited and its group companies and registered under Bombay Public Trust Act. This institute has been established with a view to provide a platform for continuous development of employees by imparting various training, supported by research and documentation of best practices needed in the modern era. The Institute aims at improving efficiency of all employees working in GUVNL and it’s Group Companies by Soft skill, Customer Care and Safety etc. and event/ programme on different important topics of Power Sector through In-house/ External Faculty at GETRI as well as at GEKC’s. Imparting systematic training and trying to create learning organization. So that employees working in different Group Companies can meet the need of modern organization and globalization. Thus GETRI is organizing various types of Training Programme Covering Technical Subjects, HR, Finance & Accounts, Commerce, IT/Computer There are ten Gujarat Energy Knowledge Centers (GEKC) in all over Gujarat located at Surat , two in
18 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
Vadodara, Vallabh Vidhyanagar, Wanakbori (Power station), Sabarmati, Mahesana, Rajkot, Jamnagar and Porbandar where in training is imparted. Executive/ Officer and Staff including Union leader are also nominated for training/ Conference/ Seminar by external agency/ institution located in different part of India to upgrade their knowledge and broaden their out look GETRI activities/achievements during Year 2011-12 are as under :- *Induction Training of JE (VS) of GSECL was conducted first time at GETRI during 12th December 2011 to 18th February 2012. Earlier JE(VS) were being sent to NPTI Faridabad for Induction Training *One batch of Induction Training for newly recruited JE(VS) of GETCO, Three batched of Discoms & 4 batches of Induction Cum Refresher Training for JE(Regular) of DISCOMs was conducted. *During the Year 2011-12 focus was changed from “Quantity” to add “Quality”. Soft Skill training was reduced drastically and more training was organized on technical topics (Generation, Transmission & Distribution), HR Matters, Legal Aspects, Power Trading, IT, Safety, Commerce, Finance and Accounts and yoga etc. Training Details of 2011-12.
Sr. Training Particulars No. of Training No. of Employees No. of Man-day No. Programmes Trained Training 01 GETRI 583 15641 29716 02 External Training 313 1489 5897 03 Generation Training. (WTPS) 129 2722 9014 04 GEKC – (1-GETCO & 9-DISCOMs) 1113 28376 36154 05 Other in-house training 644 19205 23219 TOTAL 2782 67433 104000 *Total training man-days done during the period April 2011 to March 2012 stands to 29716 at GETRI which is much higher than 23135 man-days done during the previous year 2010- 11.Total training man days achieved by GETRI & all companies during April 2011 to March 2012 is 1,04,000. Total 5897 employees have been deputed for External Training in various reputed Institution slike ESCI, NPTI, ERDA, CPRI, HLTC, FICCI, FGI, BMA, Areva, ABB, ASCI, MSU, GERMI, PDPU, Parul Institute of Technology, SVIT etc HUMAN RESOURCES : The Company endeavors to provide an environment so that each employee is motivated to contribute his/her best to achieve the Company’s Goals/Objectives. The Company has taken series of proactive HR initiatives including need based training and development programmes with special emphasis on developing competencies of employees and thereby enhancing organizational effectiveness. The Industrial Relations remained cordial during the year. STAFF WELFARE ACTIVITIES : Employee Welfare plays an important role to cultivate the qualities of greater involvement and deeper unity amongst the employees and also works as motivation to the employees. The GUVNL has taken
19 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12 utmost care and given ample importance in the field of welfare activities. Apart from Statutory Welfare Provisions, the Company has given due importance to the non-statutory welfare activities. A good number of welfare activities have continued to be handled in GUVNL even for subsidiary companies for the sake of synergy, coordination and functional needs. The number of staff welfare activities were carried out during the year like sports, AIESCB tournaments, Grant to Employees Organization for cultural programmes, Inter Company Music Competition, Inter Company Drama Competition, Loans to Cooperative Society, Staff Voluntary Retirement Cum death Benevolent Fund Scheme-II, Merit Awards to the employees and their family members for their bright performance in the field of Education, Sports and Fine Arts, Sports Complex at Vidyutnagar Colony, Vadodara, Gymnasium at Corporate Office, Colony and GETRI etc. DIRECTORS : During the period under review, as per GAD Notification No. AIS/35.2012/20/G dated 27th June ,2012 issued by General Administration Department,Govt. of Gujarat and letter No. GUV-14-2012-1948-K dated 28th June, 2012 issued by Energy and Petrochemicals Department,Govt. of Gujarat, Shri Raj Gopal,IAS was appointed as an Additional Director pursuant to section 260 of the Companies Act,1956 w.e.f. 2nd July,2012. He holds office as an Additional Director up to the date of this Annual General Meeting(AGM) and is recommended for appointment as Director at the AGM. Shri Raj Gopal,IAS was appointed as Managing Director of the Company w.e.f. 2nd July,2012 vice Shri Mukesh Puri,IAS as per aforesaid Govt. Notification. Shri Mukesh Puri,IAS resigned from the Board which was accepted by the Board w.e.f. 02-07-2012. The Board placed on record sincere appreciation for valuable contribution made by Shri Mukesh Puri,IAS during his tenure as Managing Director of GUVNL. Shri Bimal Patel retire by rotation at the ensuing Annual General Meeting and is eligible for reappointment. It is proposed to reappoint Shri Bimal Patel as Director at the ensuing Annual General Meeting. AUDITORS : M/s S.C.Bapna & Associates, Chartered Accountants, Vadodara have been appointed as Statutory Auditors of the Company for F.Y. 2012-13 by the office of Comptroller & Auditor General of India, New Delhi. As per the provisions of Section 224(8)(aa) of the Companies Act, 1956, remuneration of Statutory Auditors appointed by C&AG is required to be fixed by the Company in General Meeting. AUDITORS’ REPORT AND C&AG COMMENTS: The notes to the accounts referred to in Statutory Auditors’ Report are self explanatory and therefore, do not call for any further comments pursuant to section 217(3) of the Companies Act,1956. The Nil Comment certificate dated 22-11-2012 received from the Comptroller & Auditor General of India pursuant to Section 619(4) of the Companies Act,1956 is attached with this report. COST AUDITORS: The Government of India, Ministry of Finance has issued Cost Audit Order under Section 233B of the Companies Act, 1956 to appoint Cost Auditor to audit the Cost Accounting Records and Books of Accounts maintained by the Company in respect of Electricity Industry. Accordingly, the Board of Directors appointed M/s.R.K.Patel & Co, Cost Accountants, Vadodara as Cost Auditors for the Financial Year 2011-12 which was approved by the Central Government for auditing the Cost Accounts relating to Bulk Purchase and Sale of Electricity. The Cost Auditors prepared the cost audit report for
20 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12 the Financial Year 2011-12. The Cost Audit Report which is due for filing by 31-12-2012 as extended by Ministry of Corporate Affairs will be filed by Cost Auditor with the Central Govt.(MCA Portal) within statutory time limit. SUBSIDIARY COMPANIES: The documents required to be attached to the Balance sheet of holding company and the statement referred to in sub section 3 of section 212 of the Companies Act,1956 shall be sent as an addendum forming part of this report in respect of following subsidiary companies. 1. Gujarat State Electricity Corp.Ltd. 2. Gujarat Energy Transmission Corp. Ltd. 3. Uttar Gujarat Vij Co.Ltd. 4. Dakshin Gujarat Vij Co.Ltd. 5. Paschim Gujarat Vij Co.Ltd. 6. Madhya Gujarat Vij Co.Ltd. AUDIT COMMITTEE : Pursuant to Section 292 A of the Companies Act, 1956, the ‘Audit Committee‘is presently constituted consisting of the following Directors. 1. Shri L.Chuaungo,IAS Chairman 2. Shri R.N.Singh Member 3. Shri Bimal Patel Member 4. Smt. Shahmeena Husain,IAS Member The Audit Committee has, at its meeting held on 26-09-2012, reviewed and recommended Annual Accounts 2011-12 to the Board for approval which was approved by the Board. DISCLOSURES: (a) Particulars of Employees: There was no employee during the year drawing remuneration in excess of the ceilings prescribed under the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, as amended. (b) Energy Conservation ,Technology Absorption and Research & Development: Since the Company is engaged in power trading business, the provisions relating to above details are not applicable to the Company. However brief details of energy conservation measures taken through Discoms are given hereunder for information. For the year 2011-12, a total budget provision of Rs. 3993/- lakhs was made under Energy Conservation Programme. KHUSHY is a High Voltage Distribution System of installing smaller size of Distribution Transformers and thereby reduction of LT Lines up to negligible level by converting it into HV Line. In rural area the existing distribution systems consists of 11KV Lines with lengthy 3 Ph 4 wire LT lines, in this system, the Line Losses are very high; Voltage profile and reliability are also unsatisfactory.
21 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
To improve Voltage profile in rural area the small capacity of Distribution Transformers are to be installed by extending 11KV Line as nearer to the load as possible and Distribution Transformer of the capacity of 10, 16 KVA are erected and supply is released to consumer through a short length of LT Lines preferably through insulated overhead cables known as Aerial Bunched Cable (ABC)/PVC Cable. In Order to ensure pilferage free system, one of several remedial measures is reducing LT line (System) being exposed to theft. The whole idea is to have Less LT system and gradually move on to LT Less system. Even the short LT Lines are to be laid using ABC /PVC Cables. During the year 2011-12, 10646 Nos. of small capacity transformers installed under KHUSHY at the expenditure of ` 154.18 Crores.( 2260 Nos. of small capacity transformers installed under KHUSHY-Energy Conservation at the expenditure of ` 29.95 Crores.) with contribution from State Govt. of `154 crores in the form of equity capital and grant. (c) Foreign Exchange Earnings & Outgo: During the year under review, there was no foreign exchange earning or outgo. DIRECTORS’ RESPONSIBILITY STATEMENT : In accordance with Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that: 1. in the preparation of annual accounts for the financial year ended 31st March,2012, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any. 2. accounting policies have been selected and consistently applied 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 as at 31st March, 2012 and of the profit of the Company for the year ended on that date; 3. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities, and 4. the annual accounts for the financial year ended 31st March,2012 have been prepared on a ‘going concern’ basis. ACKNOWLEDGEMENT : Your Directors place on record their appreciation of the valuable guidance, support and assistance received from the Ministry of Power, Govt. of India, Government of Gujarat, GERC and other Central and State Govt. Authorities/Departments, Banks, Financial Institutions, GSFS, GPCL,GIPCL and for the valuable services rendered by the employees of the GUVNL and its subsidiary Companies.
For and on behalf of the Board
Date : 13 / 12 / 2012 D.J.Pandian Place : Gandhinagar Chairman
22 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
ADDENDUM TO DIRECTORS’ REPORT 2011-12 To, The Members, Gujarat Urja Vikas Nigam Ltd.
Documents of Subsidiary Companies.
As required by section 212 of the Companies Act,1956, the statement referred to in sub section 3 and the documents required to be attached to the Balance Sheet of holding Company are attached in respect of following Subsidiary Companies;
1. Gujarat State Electricity Corp.Ltd. 2. Gujarat Energy Transmission Corp. Ltd. 3. Uttar Gujarat Vij Co.Ltd. 4. Dakshin Gujarat Vij Co.Ltd. 5. Paschim Gujarat Vij Co.Ltd. 6. Madhya Gujarat Vij Co. Ltd.
For and on behalf of Board
D.J.Pandian Chairman Date : 26 / 12 / 2012 Place : Gandhinagar
23 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
COMMENTS OF THE COMPTROLLER AND AUDITOR, GENERAL OF INDIA UNDER SECTION 619 (4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF GUJARAT URJA VIKAS NIGAM' LIMITED FOR THE YEAR ENDED 31 MARCH 2012.
The preparation of financial statements of Gujarat Urja Vikas Nigam Limited for the year ended 31 March 2012 in accordance with the financial reporting framework prescribed under the Companies Act, 1956 is the responsibility of the management of the Company. The Statutory Auditors appointed by the Comptroller and Auditor General of India under Section 619(2) of the Companies Act, 1956 are responsible for expressing opinion on these financial statements under section 227 of the Companies Act, 1956 based on independent audit in accordance with the auditing and assurance standards prescribed by their professional body the Institute of Chartered Accountants of India. This is stated to have been done by them vide their Audit Report dated 26 September 2012. I, on behalf of the Comptroller and Auditor Genral of India, have conducted a supplementary audit under section 619(3) (b) of the Companies Act, 1956 of the financial statements of Gujarat Urja Vikas Nigam Limited for the year ended 31 March 2012. 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. On the basis of my audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to Statutory Auditor's report under section 619 (4) of the Companies Act, 1956.
For and on behalf of the Comptroller & Auditor General of India
sd/- (Meera Swarup) Accountant General (E & RSA); Gujarat
Place : Ahmedabad Date : 22 / 11 / 12
24 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
S.C. BAPNA & ASSOCIATES 74-76, Gayatri Chambers, R.C. Dutt Road, CHARTERED ACCOUNTANTS Near Railway Station, Alkapuri, Vadodara (Gujarat) - 390005. Ph. : 0265-2331056, 2334365
AUDITOR’S REPORT TO THE MEMBERS OF GUJARAT URJA VIKAS NIGAM LIMITED, VADODARA 1. We have audited the attached Balance Sheet of GUJARAT URJA VIKAS NIGAM LIMITED, as at 31st March, 2012 and also the annexed Statement of Profit and Loss and the Cash Flow statement of the Company for the year ended on that date. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditor’s Report) Order, 2003 as amended by the Companies (Auditor’s Report) (Amendment) Order, 2004 issued by the Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanation given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. Further to our comments in the annexure referred to in paragraph 3 above, we report that: a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our Audit. b) In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books. c) The Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books account. d) The Company being a Government Company, in view of the Notification No. GSR 829 (E) Dated 21st October, 2003 issued by the Government of India, the provisions of clause (g) of sub section (i) of Section 274 of the Companies Act, 1956 are not applicable to the Company. e) In our opinion the Statement of Profit and Loss, the Balance Sheet and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in the Section 211 (3c) of the Companies Act, 1956 and
25 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
f) We invite attention without qualifying our report to note no. 27 of Financial Statement regarding provisions of Custom Duty on purchase of power of ` 253.60 crores, on the basis of Hon’ble GERC Order, we have relied upon the management’s representation that the custom duty shall be payable as per order and may be recoverable from subsidiary distribution companies. g) In our opinion and to the best of our information and explanation given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles accepted in India: i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012; ii) In the case of the Statement of Profit and Loss of the profit for the year ended on that date, and; iii) In the case of the Cash Flow Statement, of the cash flow for the year ended on that date.
For S.C. Bapna & Associates Chartered Accountants Firm Reg. No.: 115649W
sd/- (S.C. Bapna) Partner M.No.71765
PLACE : GANDHINAGAR DATE : 26/09/2012
26 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
S.C. BAPNA & ASSOCIATES 74-76, Gayatri Chambers, R.C. Dutt Road, CHARTERED ACCOUNTANTS Near Railway Station, Alkapuri, Vadodara (Gujarat) - 390005. Ph. : 0265-2331056, 2334365
ANNEXURE TO THE AUDITORS REPORT Referred to in paragraph 3 of the Auditors’ Report of even date to the members of Gujarat Urja Vikas Nigam Limited on the Financial Statements as of and for the year ended March, 31, 2012. 1. a) The Company has compiled the fixed assets register in respect of Assets purchased / constructed as well as Assets of erstwhile GEB transferred to the Company under the Notification dated 03/10/2006 issued by the Government of Gujarat showing particulars including quantitative details, except that certain details such as location, identification no. etc of Fixed Assets are in the process of being updated. b) As informed, the fixed assets have been physically verified by the management during the current year. According to the information and explanation given to us, no material discrepancies were found on such verification. c) No substantial part of the fixed assets has been disposed off during the year. 2. The Company does not hold any inventory of goods. Accordingly sub-clauses (a), (b) & (c) of clause (ii) are not applicable. 3. In our opinion and according to the information and explanations given to us, the Company has not granted any loans secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. On the strength of a legal opinion obtained by the Company, it has represented that the provisions of Section 299, 300 and 301 of the Companies Act, 1956 are not attracted to the transactions entered in to by the company with its subsidiaries and are not liable to be listed in the register maintained under Section 301 of Companies Act, 1956. 4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures / system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and with regard to sale and purchase of electricity. Further, on the basis of our examination of the books and records of the Company carried out in accordance with the auditing standards generally prevalent in India, we have neither come across nor have been informed of any continuing failure to correct major weakness in the aforesaid internal control system. 5. The Company has entered into contracts / arrangements with Company / Companies being its Subsidiary Company. As per the information and explanations given to us and based on the legal opinion obtained by the Company, the transactions pursuant to these contracts and / or arrangement are not falling under the provisions of Section 301 of the Companies Act, 1956 and accordingly these transactions are not entered into the register required to be maintained under Section 301 of the Companies Act, 1956. 6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of Section 58A, 58AA or any other relevant provision of the Companies Act, 1956 and the rules framed there under.
27 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
7. The Company has appointed an independent firm of Chartered Accountants as an internal auditor with defined scope, which in our opinion is commensurate with the size of the Company and the nature of its business. 8. The Central Government has prescribed maintenance of Cost records under Section 209(1) (d) of the Companies Act 1956. The Company has appointed a firm of Cost Accountants for the preparation of Cost Records. We have broadly reviewed the cost records and are of the opinion that, prima facie, the prescribed records have been made and maintained. 9. According to the information and explanation given to us in respect of statutory and other dues: a) The Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax, Custom Duty, Cess and any other statutory dues with the appropriate authorities. b) According to information and explanations given to us, no undisputed amount payable in respect of such statutory dues were in arrears as at 31.03.2012 for the period of more than six months from the date they become payable as on date. c) According to the information and explanations given to us, there are no dues of Income Tax, Wealth Tax, Service Tax, Customs duty and Cess, which have not been deposited on account of any dispute except as under: Sr. Nature of Nature of Amount Period Forum where No. the Statute the Dispute (in `) dispute is Pending 1 Bombay Stamp Duty 11,08,00,000 Demand Chief Controller of Stamp Act on Mortgage Deed Pertaining to Revenue Authority, erstwhile GEB Gandhinagar 2 Income Tax Recomputed MAT 21,20,90,250 AY 2009-10 CIT (A), Baroda Act, 1961 and interest u/s 234B & 234C 3 Income Tax Recomputed MAT 2,13,30,850 AY 2007-08 CIT (A), Baroda Act, 1961 and interest u/s 234B & 234C 4 Income Tax Interest u/s 14,14,160 AY 2008-09 ITAT, Ahmedabad Act, 1961 115WJ on FBT
10. The accumulated losses of the company are less than fifty percent of its net worth and the company has not incurred cash losses during the current financial year or in the immediately preceding financial year. 11. In our opinion and according to the information and explanations given to us the Company has not defaulted in repayment of dues to a financial institution or bank or debentures holders. 12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
28 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
13. The provisions of any special statutes applicable to chit fund, nidhi and mutual benefit funds / society are not applicable to the Company. 14. Based on examination of the accounts and as per the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investment. 15. In our opinion, the terms and conditions on which the Company has given guarantees for loans taken by subsidiary Companies from banks or financial institutions are not prejudicial to the interest of the Company. 16. In our opinion, the term loans have been applied for the purposes for which they were raised. 17. According to information and explanations given to us and on overall examination of the balance sheet of the Company, we report that no funds raised during the year on short- term basis have been used for long term investment and no long-term fund raised during the year have been used to finance short-term assets except permanent working capital. 18. Based on a legal opinion obtained by the Company, the provisions of Section 301 of the Companies Act, 1956 are not applicable to the Company. In view of the above, this clause in respect of preferential allotment of shares is not applicable. 19. The liabilities under the bonds issued by the erstwhile GEB transferred to the Company are secured by a guarantee given by Government of Gujarat. 20. The Company has not raised money by public issue during the year. 21. We have been informed that the vigilance department of the Company is regularly investigating frauds and other irregularities involved in the Company’s transactions. To the best of our knowledge and belief, and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year.
For S.C. Bapna And Associates Chartered Accountants Firm Reg. No.: 115649W
sd/- (S.C. Bapna) Partner M.No.71765 PLACE : GANDHINAGAR DATE : 26/09/2012
29 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
BALANCE SHEET AS AT 31st MARCH, 2012 (` IN LAKHS) Sr. NOTE AS AT 31st AS AT 31st PARTICULARS No. No. MARCH, 2012 MARCH, 2011 I EQUITY AND LIABILITIES 1 Shareholder’s Funds a Share Capital 2 455180.29 394360.29 b Reserves and Surplus 3 -20637.87 -27008.44 434542.42 367351.85 2 Share Application Money Pending Allotment 4 0.00 10000.00 3 Non Current Liabilities a Long Term Borrowings 5 35239.52 45347.37 b Other Long Term Liabilities 6 485.88 451.98 c Long Term Provisions 7 43204.16 43404.35 78929.56 89203.70 4 Current Liabilities a Short Term Borrowings 8 16428.67 49258.65 b Trade Payables 9 228392.77 212210.02 c Other Current Liabilities 10 337881.27 227836.72 d Short Term Provisions 11 12766.61 13921.94 595469.32 503227.33 TOTAL 1108941.30 969782.88 II ASSETS 1 Non Current Assets a Fixed Assets 12 (i) Tangible Assets 5538.38 7573.44 (ii) Intangible Assets 1436.14 2184.01 b Non-Curent Investments 13 762813.18 731993.18 c Long Term Loans and Advances 14 157.55 123.37 d Other Non Current Assets 15 576.40 563.85 770521.65 742437.85 2 Current Assets a Current Investment 0.00 0.00 b Trade Receivables 16 10585.32 4344.70 c Cash and Bank Balances 17 11074.86 9030.98 d Short Term Loans and Advances 18 4927.27 4920.50 e Other Current Assets 19 311832.20 209048.85 338419.65 227345.03 TOTAL 1108941.30 969782.88 Notes to the Financial Statements 29 Significant Accounting Policies 1 As per our report of even date For and on behalf of the Board
For S.C.BAPNA & ASSOCIATES Chartered Accountants D.J.PANDIAN, IAS RAJ GOPAL, IAS Firm Reg. No.115649W Chairman Managing Director
S.C.BAPNA K. M. SHRINGARPURE PARTHIV BHATT Partner General Manager (F&A) Company Secretary Membership No.71765 Place : Gandhinagar Place : Gandhinagar Date : 26/09/2012 Date : 26/09/2012 30 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2012 (` IN LAKHS) Sr. NOTE FOR THE YEAR FOR THE YEAR PARTICULARS st st No. No. ENDED 31 ENDED 31 MARCH, 2012 MARCH, 2011 I INCOME a Revenue from Operations 20 2484362.80 2029911.32 b Other Income 21 1237.85 1594.37 TOTAL 2485600.65 2031505.69 II EXPENSES a Purchase of Power 22 2429198.11 2004115.40 b Employees Benefits Expense 23 1931.95 1916.52 c Finance Costs 24 8519.80 10124.79 d Other Expenses 25 4469.86 1748.90 e Depreciation 2908.77 2895.83 TOTAL 2447028.49 2020801.44 III Profit Before Prior Period, Exceptional Items and 38572.16 10704.25 Tax Net Prior Period Income 26 85.96 1865.49 IV Profit Before Exceptional Items and Tax 38658.12 12569.74 Exceptional Items 27 25360.42 0.00 V Profit Before Tax 13297.70 12569.74 VI Tax Expenses 28 a Current Tax 2720.00 2600.00 b Deferred Tax 0.00 0.00 c Previous Year’s Tax 3848.35 2400.00 VII Profit for the year 6729.35 7569.74 VIII Earning Per Share (in `) a Basic 0.17 0.19 b Diluted 0.17 0.19 Notes to the Financial Statements 29 Significant Accounting Policies 1
As per our report of even date For and on behalf of the Board
For S.C.BAPNA & ASSOCIATES Chartered Accountants D.J.PANDIAN, IAS RAJ GOPAL, IAS Firm Reg. No.115649W Chairman Managing Director
S.C.BAPNA K. M. SHRINGARPURE PARTHIV BHATT Partner General Manager (F&A) Company Secretary Membership No.71765 Place : Gandhinagar Place : Gandhinagar Date : 26/09/2012 Date : 26/09/2012
31 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31st, 2012 (` IN LAKHS) Sr Year ended Year ended PARTICULARS No 31st March , 2012 31st March , 2011 CASH FLOW FROM OPERATING ACTIVITIES NET PROFIT BEFORE PRIOR PERIOD, EXCEPTIONAL ITEMS & TAX 38572.16 10704.25 Adjustments For: Add / (Less) :- Dividend Income (1160.75) (1160.62) Assets Not in Use Written Off 4.94 20.69 Provision for Gratuity (2099.78) (163.42) Provision for Leave Encashment 56.19 76.92 Depreciation 2908.77 2895.83 Interest and Financing Charges 8519.80 10124.79 Prior Period Income (Net of Expenses) 85.96 1860.25 Operating Profit Before Working Capital Changes 46887.29 24358.69 (Increase) /Decrease In Sundry Debtors (6240.62) 21814.74 (Increase) /Decrease In Loans & Advances (90018.55) (14000.32) Increase /(Decrease) In Provisions (5880.27) (3320.40) Increase /(Decrease) In Trade Payables and Other Liabilities 34277.80 37717.15 CASH GENERATED FROM OPERATIONS (20974.35) 66569.86 Less : Direct Tax Paid (1218.43) 5390.02 CASH FLOW FROM OPERATING ACTIVITIES BEFORE EXCEPTIONAL ITEMS (19755.92) 61179.84 Less : Exceptional Items 25360.42 0.00 A. NET CASH FROM OPERATING ACTIVITIES (45116.34) 61179.84 CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets (Net) (131.11) (403.58) Dividend Income 1160.75 1160.62 Investment in Subsidiary Companies (30820.00) (45021.25) B. NET CASH FROM INVESTING ACTIVITIES (29790.36) (44264.21) CASH FLOW FROM FINANCING ACTIVITIES Share Application Money 0.00 10000.00 Issue of Equity Share Capital 50820.00 52825.97 (Repayment) / Proceeds From Borrowings 34650.38 (73384.67) Capital Grant 0.00 358.78 Interest & Financing Charges Paid (8519.80) (10246.53)
32 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
C. NET CASH USED IN FINANCING ACTIVITIES 76950.58 (20446.45) NET INCREASE IN CASH & CASH EQUIVALENTS (A+B+C) 2043.88 (3530.82) CASH AND CASH EQUIVALENT AS AT 1-4-2011 (OP.BAL) 9030.98 12561.80 CASH AND CASH EQUIVALENT AS AT 31-3-2012 (CL.BAL) 11074.86 9030.98
CASH AND CASH EQUIVALENT AS AT 31.03.2012 AS AT 31.03.2011 Cash on hand 1.23 1.78 Cheques on hand 0.00 7934.31 Balance with Scheduled Banks : In Current Accounts 11041.82 1064.89 In Fixed Deposit Accounts 31.81 30.00 11074.86 9030.98
Note: (i) The above Cash Flow has been prepared under the Indirect Method as set out in AS - 3 on Cash Flow Statement. (ii) Cash flow from operating activities excludes non-cash transaction relating to transfer of Inter Company Balances amounting to ` 14036.41 lakhs as appearing in the books of subsidiary companies and Provision for Current Income Tax expenses of ` 6568.35 lakhs. (iii) Cash flow from financing activities excludes effect of increase in share capital and decrease in share application money to the extent of ` 10000 lakhs being non-cash adjustment.
As per our report of even date For and on behalf of the Board
For S.C.BAPNA & ASSOCIATES Chartered Accountants D.J.PANDIAN, IAS RAJ GOPAL, IAS Firm Reg. No.115649W Chairman Managing Director
S.C.BAPNA K. M. SHRINGARPURE PARTHIV BHATT Partner General Manager (F&A) Company Secretary Membership No.71765 Place : Gandhinagar Place : Gandhinagar Date : 26/09/2012 Date : 26/09/2012
33 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED MARCH 31st, 2012 NOTE: 1 SIGNIFICANT ACCOUNTING POLICIES The Company is wholly owned by Government of Gujarat. It was promoted as a part of restructuring plan of Gujarat Electricity Board (“GEB”), to buy and sell electricity, hold the shares in other companies, and acquire and hold residual assets and liabilities of GEB. 1) BASIS OF ACCOUNTING: The Company prepares its Financial Statements under historical cost convention on accrual basis as a going concern, unless otherwise stated and the same comply with the generally accepted Accounting Principles (Indian GAAP) and the relevant Accounting Standards issued by the Institute of Chartered Accountants of India referred to in Section 211 (3C) of the Companies Act, 1956 unless otherwise stated. 2) FIXED ASSETS : a) Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. 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. b) Expenses incurred during project implementation and on trial run are treated as incidental expenditure during construction and are accordingly capitalized. 3) DEPRECIATION: a) Depreciation is provided on Straight Line Method at the rates and on the basis specified in Schedule XIV to the Companies Act, 1956. b) Depreciation on addition / deletion of assets during the year is provided on pro-rata basis from the date when the asset is put to use. c) Assets costing up to ` 5,000/- per item are depreciated fully in the year of capitalization. 4) INVESTMENTS: Long term investments are stated at cost. Diminution in value, if any, which is of a temporary nature, is not provided for. 5) PROVISIONS: Provisions involving substantial degree of reliable estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources to settle the obligations. Provisions are not discounted to the present value and are determined based on the best estimate required to settle the obligation at the year end date. These are reviewed at each year-end date and adjusted to reflect the best current estimate. 6) CONTINGENT LIABILITIES : Contingent liabilities are disclosed in respect of which there are possible or present obligations that arise from past events but their existence is confirmed on occurrence or non-occurrence of one or more uncertain future events and in respect of which there may not probably be any outflow of resources.
34 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
7) PROVISION FOR TAXES: a) Provision for taxation is made at the current rate of tax on the basis of assessable profits computed in accordance with the provisions of the Income Tax Act, 1961. b) Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty except for carried forward losses and unabsorbed depreciation which is recognized on virtual certainty that the assets will be realized in future. 8) EMPLOYEE COST & RETIREMENT BENEFITS : a) The Company has a defined gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity at 15 days salary (15/26 x last drawn basic salary plus dearness allowance) for each completed year of service subject to a maximum of ` 10 Lakhs, on superannuation, resignation, termination, disablement or on death. The scheme is funded by the Company and is managed by a separate trust through Life Insurance Corporation of India (LIC). The year's liability estimated on the basis of actuarial valuation made by LIC is charged to Profit & Loss Account. b) Leave encashment benefit available on retirement is provided on the basis of actuarial valuation made by LIC and the year's liability is charged to Profit & Loss Account. c) The retirement benefits in the nature of employer's contribution towards the contributory provident fund, employee pension scheme, and group insurance EDLI etc. are paid / deposited with appropriate authorities during the year and charged to Profit and Loss Account. 9) BORROWING COST: Borrowing Costs directly attributed to the acquisition of fixed assets are capitalized as a part of the cost of asset up to the date the asset is put to use. Other Borrowing Costs are charged to the Profit and Loss Account in the year in which they are incurred. 10) SUBSIDY AND GRANTS: Subsidies from Govt. of Gujarat are accounted on accrual basis whereas the Grants from Govt. of Gujarat are accounted on receipt basis except otherwise stated. 11) IMPAIRMENT OF ASSETS: The impairment of assets i.e. “The cash generating unit” as defined in Accounting Standard-28 issued by the Institute of Chartered Accountants of India on “Impairment of Assets” are identified at the Balance Sheet date with respect to carrying amount of the asset vis-à-vis its estimated revenue generation during balance useful life of that asset and the loss, if any, is recognized in Profit and Loss Account. 12) REVENUE RECOGNITION : Energy sales are accounted on the basis of billing on Bulk supply Tariff agreements entered into with Distribution Companies viz. Dakshin Gujarat Vij Co. Ltd., Madhya Gujarat Vij Co. Ltd., Paschim Gujarat Vij Co. Ltd. and Uttar Gujarat Vij Co. Ltd. and the contracts entered into with the Licensee viz. Kandla Port Trust and Traders.
35 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
Surplus power, if any, is sold through bilateral transactions or by putting bids in Power Exchange on day to day basis and the same is accounted on acceptance of bids. 13) POWER PURCHASE : Purchase of Energy from GSECL is accounted on the basis of GERC Tariff order as applicable from time to time for the power stations transferred under the Financial Restructuring Plan approved by Govt. of Gujarat and for the existing power stations with GSECL prior to unbundling, as per the provisions of respective Power Purchase Agreements (PPAs). Power purchased from IPPs is accounted on the basis of Power Purchase Agreements entered into with the respective parties. Power purchased from Central Sector is accounted on the basis of tariff determined by Central Electricity Regulatory Commission (CERC) through various orders. Surplus power of DISCOMs is purchased by the Company for trading. Power purchased from Wind Farms and Traders (Bilateral) is accounted on the basis of contracts entered into with the respective parties. Need based power is purchased by putting bids in Power Exchange on day to day basis and the same is accounted on acceptance of bids. 14) PENALTY : Penalty for delay in supply of materials is recovered as per the terms of purchase order at the time of accounting the purchases whereas refund of penalty is accounted when the order is fully executed by the supplier and the refund is approved by the competent authority. 15) DIVIDEND INCOME : Dividend on investment is recognized as and when received. 16) OTHER INCOME : Rebate for Prompt Payment towards purchase of power, Interest on UI Pool Account, Cash Discount and CDM Benefit are accounted on cash basis. 17) ASSETS NOT IN USE : Material Items retired from active use and held for disposal are stated at lower of their net book value and net realizable value and shown separately in the financial statements.
36 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12 NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2012 NOTE : 2 SHARE CAPITAL ` IN LAKHS SR. PARTICULARS AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 NO. Authorised Share Capital 500000.00 500000.00 500,00,00,000 (Previous Year 500,00,00,000) Equity Shares each of `10 each Issued, Subscribed & Paid-Up Share Capital 455180.29 394360.29 *455,18,02,895 (Previous Year: 394,36,02,895) Equity Shares of `10 each fully paid-up TOTAL 455180.29 394360.29 1 *Out of the above, 162,87,12,000 Equity Shares are issued to Government of Gujarat as fully paid-up pursuant to the Notification No. GHU-2006-91-GUV-1106-590-K dated 3rd October, 2006 without payment being received in cash and 62,30,60,695 Equity Shares are allotted to Government of Gujarat on coversion of loans vide G R No.GUV-1106- K dtd.22nd March, 2007. 2 Reconciliation of No. of Equity Shares outstanding : AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 PARTICULARS Number of Shares Number of Shares i Opening Balance 3943602895 3415343195 ii Shares Issued 608200000 528259700 iii Shares Bought Back 0 0 iv Closing Balance 4551802895 3943602895 3 Details of Shareholders holding more than 5% Shares SR. AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 PARTICULARS NO. Number of Shares % age of holding Number of Shares % age of holding Governor of Gujarat 4551802895 100.00 3943602895 100.00 4 The Company has only one class of equity shares having par value of ` 10 each and is entitled to one vote per share. 5 Out of the Share Capital contribution of ` 508.20 crores received during the year and ` 100 crores received last year as Share Application Money from State Govt. for equity infusion in subsidiary companies, an amount of ` 308.20 crores is invested in subsidiary companies and balance amount will be invested in subsidiary companies in the following year/s. NOTE : 3 RESERVES AND SURPLUS ` IN LAKHS SR. PARTICU L A R S AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 NO. 1 Capital Reserve (Capital Grant) i As per last Balance Sheet 25358.78 25000.00 ii Add: Addition during the year 46.00 358.78 iii Less: Utilized / Transferred during the year 404.78 0.00 SUB-TOTAL 25000.00 25358.78 2 Profit and Loss Account i As per last Balance Sheet -52367.22 -59936.96 ii Add / Less: Profit for the year 6729.35 7569.74 SUB-TOTAL -45637.87 -52367.22 TOTAL -20637.87 -27008.44 Capital Grant of `308.78 lakhs for electrification of Group Wells under Mahatma Gandhi National Rural Employment Guarantee (MGNREGA) Scheme transferred to Dakshin Gujarat Vij Company Ltd., a subsidiary company, as the work was executed by them. Further, grant of ` 50 lakhs received in 2010-11, ` 21 lakhs received during the year and balance amount of ` 25 lakhs receivable against grant sanctioned by Gujarat Energy Development Agency (GEDA) has been utilised against specific capital expenditure of ` 86.40 lakhs for Solar Equipments and related revenue expenditure of ` 9.60 lakhs. NOTE: 4 SHARE APPLICATION MONEY PENDING ALLOTMENT ` IN LAKHS SR. PARTIC U L A R S AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 NO. 1 Equity Share Application Money 0.00 10000.00 TOTAL 0.00 10000.00
37 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
NOTE: 5 LONG TERM BORROWINGS ` IN LAKHS SR. PARTICUL A R S AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 NO. I SECURED LOANS A Term Loan from Banks i Indian Overseas Bank 0.00 470.67 ii Indian Overseas Bank 0.00 368.47 iii Union Bank of India 0.00 201.00 iv Allahabad Bank 0.00 603.00 v Canara Bank 0.00 1349.39 vi Dena Bank 0.00 237.05 0.00 3229.58 B Term Loan from Others i Power Finance Corporation 680.83 983.43 SUB-TOTAL 680.83 4213.01 II UNSECURED LOANS A Bonds i 11.50% Series-Vl Option-II 0.00 1048.53 ii 11.75% Series-Vl Option- III 524.96 749.94 iii 7.50% Series-Vl Option- III 970.11 1385.87 iv 11.25% Series-VII option-II 14.63 25.61 v 11.50% Series-VII option-III 491.80 491.80 vi 8.95% Series-Vlll 4481.63 4481.63 vii 8% Series-lX 712.34 712.34 viii 8% Series-X 1985.95 1985.95 9181.42 10881.67 B Term Loan from Others i Gujarat State Financial Services (GSFS) 0.00 1781.56 C Govt. of Gujarat (Related Party) i Loan for purchase of Naphtha Based Power 0.00 1176.40 ii Loan for purchase of Spot LNG Based Power 335.20 670.40 iii Loan for Power Purchase 10500.00 10500.00 iv Loan from Asian Development Bank (No.1803) 14542.07 16124.33 25377.27 28471.13 SUB-TOTAL 34558.69 41134.36 TOTAL 35239.52 45347.37 A Note: I Loan from PFC is secured against the Ist mortgage/ hypothecation charge on the assets of Bharuch Transmission Circle. II Loan from Indian Overseas Bank is secured against the 1st hypothecation charge on the assets of Dhrangadhra and Surendranagar O & M Division of PGVCL. III Loan from Dena Bank is secured against the 1st hypothecation charge on the assets of Amreli ,Dhasa & Vertej Tr. Division of GETCO. IV Loan from Indian Overseas Bank is secured against the 1st hypothecation charge on the assets of Vijapur, Mehsana & Chhatral Tr. Division of GETCO. V Loan from Union Bank of India is secured against the 1st hypothecation charge on the assets of Soja, Dhansura & Chhatral Tr. Division of GETCO. VI Loan from Allahabad Bank is secured against the 1st hypothecation charge on the assets of Sabarmati, Gandhinagar & Bavla O & M Division of UGVCL. VII Loan from Canara Bank is secured against the extension hypothecation charge on the assets of Godhra and Baroda O&M Divisions of MGVCL. VIII Bonds are secured by way of guarantee of Govt. of Gujarat
38 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
B MATURITY PROFILE OF BONDS PARTICULARS 2012-13 2013-14 2014-15 2015-16 2016-17 1 11.50% Series-Vl Option-II (Yearly) 1048.54 0.00 0.00 0.00 0.00 2 11.75% Series-Vl Option- III (Yearly) 224.98 224.98 299.98 0.00 0.00 3 7.50% Series-Vl Option- III (Yearly) 415.76 415.76 554.35 0.00 0.00 4 11.25% Series-VII option-II (Yearly) 10.98 14.63 0.00 0.00 0.00 5 11.50% Series-VII option-III (Yearly) 0.00 491.80 0.00 0.00 0.00 6 8.95% Series-Vlll (Yearly) 0.00 0.00 1344.49 1344.49 1792.65 7 8% Series-lX (Yearly) 0.00 0.00 213.70 213.70 284.93 8 8% Series-X (Yearly) 0.00 0.00 595.79 595.79 794.38 1700.26 1147.18 3008.30 2153.97 2871.97 MATURITY PROFILE OF SECURED & UNSECURED LOANS 2016-17 to PARTICULARS 2012-13 2013-14 2014-15 2015-16 2045-46 1 SECURED LOANS i Power Finance Corporation (10.49% p.a.— Repayment Quarterly @ ` 75.65 Lakhs) 302.59 302.59 302.59 75.65 0.00 ii Indian Overseas Bank (8.50% p.a.——— Repayment Quarterly @`117.67 Lakhs) 470.67 0.00 0.00 0.00 0.00 iii Indian Overseas Bank (9.50% p.a.—— Repayment Monthly @ ` 33.50 Lakhs) 368.47 0.00 0.00 0.00 0.00 iv Union Bank of India (10.75% p.a.—— Repayment Half Yearly @ ` 201.00 Lakhs) 201.00 0.00 0.00 0.00 0.00 v Allahabad Bank (9% p.a.—— Repayment Quarterly @ ` 201.00 Lakhs) 603.00 0.00 0.00 0.00 0.00 vi Canara Bank (10.75%p.a.——— Repayment Monthly @ ` 134.97 Lakhs) 1349.39 0.00 0.00 0.00 0.00 vi Dena Bank (10.75% p.a.—— Repayment Monthly @ ` 49.39 Lakhs) 237.05 0.00 0.00 0.00 0.00 Sub-Total 3532.17 302.59 302.59 75.65 0.00 2 UNSECURED LOANS i Gujarat State Financial Services (GSFS) (9% p.a. —Repayment Monthly @ ` 161.96 Lakhs) 1718.56 0.00 0.00 0.00 0.00 ii Govt. of Gujarat a Naphtha Based Power (Interest Free—Yearly) 1176.40 0.00 0.00 0.00 0.00 b Spot LNG Based Power (Interest Free—Yearly) 335.20 335.20 0.00 0.00 0.00 c Loan for Power Purchase (10% p.a.— Repayment Yeraly instalment for 30 years of ` 1050.00 Lakhs up to 2046-47) 0.00 0.00 0.00 0.00 10500.00 d ADB—1803 (12.62% p.a.—Reapayment Yearly instalment up to 2023-24) 1582.26 1582.26 1582.26 1582.26 9795.28 Sub-Total 4812.42 1917.46 1582.26 1582.26 20295.28 TOTAL (SECURED+UNSECURED) 8344.59 2220.06 1884.86 1657.91 20295.28 C The borrowings from Banks and Financial Institutions, etc. made during the year and the cost of borrowings incurred during the year has been apportioned amongst the Company and its six subsidiary companies on the basis of the Financial Restructuring Plan approved by the Govt. of Gujarat. D The Company has not executed the transfer agreements in respect of following loans availed from Banks, Financial Institutions, etc though the loans are apportioned amongst all the subsidiary companies:
` IN LAKHS INSTITUTIONS AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 1 Banks 14185.11 89966.45 2 Bonds 106896.34 132072.86 3 GSFS 39218.44 63930.70 4 Govt. of Gujarat 51728.31 55877.55 TOTAL 212028.20 341847.56
39 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
NOTE: 6 OTHER LONG TERM LIABILITIES
SR. ` IN LAKHS PA R T I C U L A R S st st NO. AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011
1 Staff Voluntary Retirement cum Death Benefit 485.88 451.98 TOTAL 485.88 451.98 NOTE: 7 LONG TERM PROVISIONS ` IN LAKHS SR. PAR T I C U L A R S AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 NO.
1 Gratuity 42482.65 42761.85 2 Leave Encashment 721.51 642.50 TOTAL 43204.16 43404.35 NOTE: 8 SHORT TERM BORROWINGS ` IN LAKHS SR. PARTICULARS AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 NO.
Secured: 1 Cash Credit from Banks 16428.67 49258.65 TOTAL 16428.67 49258.65 Cash Credit Limit is secured against the hypothecation charge in favour of UCO Bank Consortium & SBI Consortium on the Stocks and Book Debts of the Company and its six Subsidiary Companies ranking pari-passu. NOTE: 9 TRADE PAYABLES ` IN LAKHS SR. PAR T I C U L A R S AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 NO.
Liabilities related to Power Purchase 1 Others 228392.77 212210.02 TOTAL 228392.77 212210.02 Dues to SSIs and Interest on Delayed Payments: i Based on the details available with the Company regarding the status of the suppliers as defined under the “Micro, Small and Medium Enterprises Development Act, 2006” there are no dues to micro, small and medium enterprises as at 31st March 2012 on account of principal amount together with interest for delayed payment under the Act (Previous Year Nil). ii The Company has not received any claim for interest from any suppliers under the “Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993”.
40 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
NOTE: 10 OTHER CURRENT LIABILITIES ` IN LAKHS SR. PART I C U L A R S AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 NO. 1 Liabilities related to : i - O&M Supplies/Works 0.60 0.41 ii - Staff 9.81 13.44 iii Unclaimed amt.relating to Borrowings 713.57 652.22 iv Stale Cheques 3.89 12.19 v Interest Accrued and Due on Loans from Banks 88.93 99.05 vi Interest Accrued But Not Due on Loans 1846.81 2134.09 vii Inter Company Payables 93868.18 67116.00 viii Electricity Duty payable to State Govt. 26631.82 8172.03 ix Liability towards payment of TDS 58.51 939.42 x Amount owing to Licensees 274.25 274.25 xi Corpus Fund of Bal Urja Rakshak Dal 33.73 31.31 xii Deposits and Retention from Suppliers & Contractors 3632.94 2481.76 xiii Other Liabilities a Income Accrued & Due—Staff Loans 0.00 0.02 b Liability for Interest Received—Outside Parties 10.47 9.36 c Board of Trustees——CPF 899.74 174.19 d Grant Payable 100.01 0.00 1010.22 183.57 Current maturities of Long Term Debt: 2 Secured* A Term Loan from Banks i Bank of Baroda 0.00 1468.09 ii State Bank of India 0.00 1957.97 iii Indian Overseas Bank 470.67 470.67 iv Dena Bank 0.00 1581.68 v Indian Overseas Bank 368.47 402.01 vi Union Bank of India 201.00 402.00 vii Allahabad Bank 603.00 804.00 viii State Bank of India 0.00 2385.07 ix Bank of Baroda 0.00 1185.34 x Syndicate Bank 0.00 3167.95 xi Canara Bank 1349.39 2429.41 xii Dena Bank 237.05 592.68 3229.58 16846.87 B Term Loan from Others i Power Finance Corporation 302.59 302.59 SUB-TOTAL 3532.17 17149.46 3 Unsecured A Bonds i 11.50% Series-Vl Option-II 1048.54 786.40 ii 11.75% Series-Vl Option- III 224.98 0.00 iii 7.50% Series-Vl Option- III 415.76 0.00 iv 11.25% Series-VII option-II 10.98 10.98 v 11.50% Series-VII option-III 0.00 0.00 vi 8.95% Series-Vlll 0.00 246.87 vii 8% Series-lX 0.00 211.57 viii 8% Series-X 0.00 785.79 ix SLR Bonds 0.00 521.27 1700.26 2562.88
41 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
B Term Loan from Banks i Karnataka Bank Ltd. 0.00 850.29 ii Short Term Bills Discounting by IPPs from Banks 199600.00 109200.00 199600.00 110050.29 C Term Loan from Others i Power Finance Corporation 0.00 27.03 ii Gujarat State Financial Services (GSFS) 1781.72 12843.46 D Govt. of Gujarat (Related Party) i Loan for purchase of Naphtha Based Power 1176.40 1176.40 ii Loan for purchase of Spot LNG Based Power 335.20 335.20 iii Loan from Asian Development Bank (No.1803) 1582.26 1582.26 3093.86 3093.86 SUB-TOTAL 206175.85 128577.52 TOTAL 337881.27 227836.72 * Refer Note No.4
NOTE: 11 SHORT TERM PROVISIONS ` IN LAKHS SR. PARTI C U L A R S AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 NO.
1 Provision for Employees i Gratuity 8789.79 10610.38 ii Leave Encashment 27.34 50.16 SUB-TOTAL 8817.13 10660.54 2 Provision for Tax i Provision for Income Tax—Past Years 2348.47 1900.04 ii Provision for Income Tax—MAT 915.70 789.51 iii Provision for Fringe Benefit Tax 1.91 1.91 SUB-TOTAL 3266.08 2691.46 3 Other Provisions Expenses 683.40 569.94 TOTAL 12766.61 13921.94
42 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12 1
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43 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
NOTE: 13 NON CURRENT INVESTMENT ` IN LAKHS SR. PART I C U L A R S AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 NO. INVESTMENT IN EQUITY INSTRUMENTS 1 Investment in Subsidiary Companies Unquoted , Non-Trade I 145,80,22,424 (Previous year 145,80,22,424) Equity Shares of `10/- each in Gujarat State Electricity Corporation Ltd., fully paid-up. (Shares against investment of ` 22,300/- lakhs are yet to be allotted to the Company). 267303.95 267303.95 II 49,88,83,340 (Previous Year 48,22,16,674) Equity Shares of `10/- each in Gujarat Energy Transmission Corporation Ltd., fully paid-up. (Shares against investment of ` 8,420/-lakhs are yet to be allotted to the Company) 186211.65 177791.65 III 26,77,25,547(Previous Year 26,77,25,547 ) Equity Shares of `10/- each in Dakshin Gujarat Vij Company Ltd., fully paid-up. 48641.34 48641.34 IV 24,26,41,422 (Previous Year 24,26,41,422 ) Equity Shares of `10/- each in Madhya Gujarat Vij Company Ltd., fully paid-up. 44356.64 44356.64 V 46,29,03,896 (Previous Year 46,29,03,896) Equity Shares of `10/- each in Paschim Gujarat Vij Company Ltd., fully paid-up. (Shares against investment of ` 32,400/-lakhs are yet to be allotted to the Company). 143913.03 121513.03 VI 23,71,48,722 (Previous Year 23,71,48,722 ) Equity Shares of `10/- each in Uttar Gujarat Vij Company Ltd., fully paid-up. 56983.82 56983.82 SUB-TOTAL 747410.43 716590.43 2 Investment in Other Companies A Quoted, Non-Trade i 1,13,50,000 (Previous Year 1,13,50,000 ) Equity Shares of `10/- each in Gujarat State Petronet Ltd.,fully paid-up. 1135.00 1135.00 ii 3,83,84,397 (Previous Year 3,83,84,397) Equity Shares of ` 10/- each in Gujarat Industries Power Co.Ltd., fully paid-up. 9092.35 9092.35 SUB-TOTAL 10227.35 10227.35 B Un-quoted, Non-Trade I 19,30,000 (Previous Year 19,30,000 ) Equity Shares of `100/- each in Gujarat Power Corporation Ltd., fully paid-up. 1930.00 1930.00 II 2,90,03,636 (Previous Year 2,90,03,636) Equity Shares of `10/- each in Gujarat State Energy Generation Ltd., fully paid-up. 2990.40 2990.40 III 50,000 (Previous Year 50,000 ) Equity Shares of `10/- each in GSPC Gas Co. Ltd., fully paid-up. 5.00 5.00 IV 25,00,000 (Previous Year 25,00,000) Equity Shares of `10/- each in Power Exchange of India Ltd., fully paid-up 250.00 250.00 SUB-TOTAL 5175.40 5175.40 TOTAL 762813.18 731993.18 Aggregate Cost of Quoted Investments 10227.35 10227.35 Aggregate Cost of Un-Quoted Investments 752585.83 721765.83 Market Value of Quoted Investments 34189.18 46703.68
44 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
A Investment in Shares of Subsidiary Companies and Other Companies The Company has made following investments in shares of subsidiary companies and other companies ` IN LAKHS SR. SUBSIDIARY COMPANIES SHARE CAPITAL SHARE PREMIUM TOTAL NO. 1 Gujarat State Electricity Corporation Ltd. 168102.24 99201.71 267303.95 2 Gujarat Energy Transmission Corporation Ltd. 58308.33 127903.32 186211.65 3 Dakshin Gujarat Vij Company Ltd. 26772.55 21868.78 48641.33 4 Madhya Gujarat Vij Company Ltd. 24264.14 20092.51 44356.65 5 Paschim Gujarat Vij Company Ltd. 78690.39 65222.64 143913.03 6 Uttar Gujarat Vij Company Ltd. 23714.87 33268.95 56983.82 SUB-TOTAL 379852.52 367557.91 747410.43 II OTHER COMPANIES: 1 Gujarat State Petronet Ltd. 1135.00 0.00 1135.00 2 Gujarat Industries Power Co.Ltd. 3838.44 5253.91 9092.35 3 Gujarat Power Corporation Ltd. 1930.00 0.00 1930.00 4 Gujarat State Energy Generation Ltd. 2900.36 90.04 2990.40 5 GSPC Gas Co. Ltd. 5.00 0.00 5.00 6 Power Exchange Of India Ltd. 250.00 0.00 250.00 SUB-TOTAL 10058.80 5343.95 15402.75 III TOTAL INVESTMENTS: 389911.32 372901.86 762813.18 B The Company has valued investment in equity capital of Power Exchange India Ltd. (PXIL) at cost. Being a long term investment and the extension of time limit granted by the Central Electricity Authority to PXIL to comply with the minimum net worth requirement, steady growth in number of members and clients, planned launch of new products in near future, improvement in overall economic sentiment & business prospects in power sector, the diminution in value of this investment is not considered permanent in view of these developments. NOTE: 14 LONG TERM LOANS AND ADVANCES SR. ` IN LAKHS PARTICULARS No. AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 1 Advances to Staff 157.55 123.37 TOTAL 157.55 123.37 NOTE: 15 OTHER NON CURRENT ASSETS SR. ` IN LAKHS PARTICULARS No AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 1 Deposits with others 319.95 318.95 2 Income Accrued But Not Due-Staff Advances 256.45 244.90 TOTAL 576.40 563.85
45 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
NOTE: 16 TRADE RECEIVABLES ` IN LAKHS SR. PARTICULARS AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 NO. Unsecured ,Considered Good 1 Debts outstanding for the period exceedings six 0.00 0.00 months 2 Others 10585.32 4344.70 TOTAL 10585.32 4344.70 NOTE: 17 CASH AND BANK BALANCES ` IN LAKHS SR. PARTICULARS AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 NO. 1 Cash and Cash Equivalent i Cash on hand 1.23 1.78 ii Cheques on hand 0.00 7934.31 iii Balance with Scheduled Banks - In Current Accounts 11041.82 1064.89 2 Other Bank Balances i - In Fixed Deposit (Maturity within 3 to 12 31.81 30.00 months) TOTAL 11074.86 9030.98 NOTE: 18 SHORT TERM LOANS AND ADVANCES SR. ` IN LAKHS PARTICULARS NO. AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011
1 Advances to / for and recoverable from i - O&M supplies and works 13.23 74.62 ii - Staff 55.45 41.28 2 Advance Tax, TDS and FBT 4854.49 4795.50 3 Other Recievables 4.10 9.10 TOTAL 4927.27 4920.50 NOTE: 19 OTHER CURRENT ASSETS ` IN LAKHS SR. PARTICULARS AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 NO. 1 Assets not in use 6.81 6.48 2 Deposit with Government and Local bodies 50.29 2.50 3 Prepaid Expenses 5512.95 3248.92 4 Staff Welfare Fund 0.00 0.15 5 Income Accrued But Not Due-Staff Advances 80.20 50.19 6 Gujarat Energy Training Institute 8.54 333.99 7 Inter Company Recievables 161059.30 112543.52 8 Subsidy Recievable from Government 145114.11 92863.10 TOTAL 311832.20 209048.85
46 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
NOTE: 20 REVENUE FROM OPERATIONS ` IN LAKHS SR. PARTICULARS FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 1 SALE OF POWER A Sale of Power to Licensees 1705.64 2370.57 SUB-TOTAL 1705.64 2370.57 B Sale of Power to Subsidiaries : i Madhya Gujarat Vij Company Ltd (MGVCL) 337879.26 284549.94 ii Paschim Gujarat Vij Company Ltd (PGVCL) 731128.17 594744.78 iii Uttar Gujarat Vij Company Ltd (UGVCL) 574566.52 490575.05 iv Dakshin Gujarat Vij Company Ltd (DGVCL) 575806.01 475982.30 SUB-TOTAL 2219379.96 1845852.07 C Sale of Power to Others: Sale of Power through Power Exchanges & 218163.20 162810.07 Bilateral Arrangements SUB-TOTAL 218163.20 162810.07 Total Rev. from Sale of Power to Licensees, 2439248.80 2011032.71 Subsidiaries and Others (1) 2 Other Operating Revenue i Delayed Payment Charges from Consumers 833.99 0.00 ii Rebate for Prompt Payment 33885.91 18593.28 iii Cash Discount 2.95 9.67 iv Penalties received from Suppliers 9838.73 125.29 (Net of Refund) v CDM Benefit from Renewable Energy Sources 552.42 150.37 Total Other Operating Revenue (2) 45114.00 18878.61 TOTAL 2484362.80 2029911.32
NOTE: 21 OTHER INCOME ` IN LAKHS SR. PAR T ICULARS FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 1 INTEREST i Interest on Staff Loans and Advances. 23.10 12.80 ii Interest on Fixed Deposit with Banks 0.00 0.66 iii Interest on Other Loans and Advances 34.84 184.99 iv Interest on UI Pool Account 0.00 137.37 Total Interest 57.94 335.82 2 Dividend 1160.75 1160.62 3 Provision no longer required 0.00 24.00 4 Gain on Sale of Fixed Assets 0.00 8.45 5 Miscellaneous Income 19.16 65.48 TOTAL 1237.85 1594.37
47 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
NOTE: 22 PURCHASE OF POWER
` IN LAKHS SR. PARTICULARS FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 A From Central Sector: 1 Nuclear Power Corporation of India Ltd. 86029.25 60302.19 2 NTPC Ltd. 379897.78 297390.95 3 Sardar Sarovar Narmada Nigam Ltd 13947.66 11519.40 SUB-TOTAL 479874.69 369212.54 B From IPPs: I Private Sector: 1 Essar Power Limited 40226.16 48347.87 2 Gujarat Paguthan Energy Corporation Pvt. Ltd. 151401.40 133570.62 3 Essar (Vadinar) Ltd. 1263.04 0.00 4 ACB India Ltd. 2157.40 0.00 5 Adani Power Ltd. 243031.63 173782.92 SUB-TOTAL 438079.63 355701.41 II State Sector: 1 Gujarat Industries Power Company Ltd. 116125.13 95148.48 2 Gujarat State Energy Generation Ltd. 29969.06 27766.42 3 Gujarat Mineral Development Corporation 12624.48 23723.25 4 Gujarat State Electricity Coporation Ltd. 833245.13 757312.66 SUB-TOTAL 991963.80 903950.81 C From Others: 1 Wind Farms 79483.15 52361.46 2 Purchase of Power from Renewable Sources 27925.31 941.45 3 Captive Power Plants 4277.98 7051.91 4 Power Exchange of India Ltd. 124.13 0.00 5 India Energy Exchange 210.16 0.00 6 Purchase of Power from DISCOMs 213227.56 159084.44 SUB-TOTAL 325248.29 219439.26 D Wheeling Charges: 1 Transmission Charges to Power Grid Corporation 49822.36 37406.89 2 Wheeling /Transmission Charges payable to 144209.34 118404.49 Gujarat Energy Transmission Corporation Ltd. SUB-TOTAL 194031.70 155811.38 TOTAL 2429198.11 2004115.40 NOTE: 23 EMPLOYEES BENEFITS EXPENSE ` IN LAKHS SR. PARTI C U L A R S FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 1 Salaries & Allowances 1586.97 1484.30 2 Leave Encashment 106.35 113.63 3 Contribution to PF & Other Funds 117.68 105.41 4 Gratuity 77.10 146.03 5 Staff Welfare 37.80 58.43 6 Expenditure on Training to Staff 6.05 8.72 TOTAL 1931.95 1916.52 (a) Defined contribution to Provident Fund, Employees Pension Scheme and Employees Death Linked Insurance:
` IN LAKHS SR. PARTIC U L A R S FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 1 EDLI Admn. Charges 0.01 0.01 2 Company’s Contribution to CPF 117.68 105.41 3 CPF Inspection & Audit Charges 2.16 2.03 4 Pension Contribution for Company’s Employees on deputation 15.16 24.01 5 Company’s Contribution to Pension Fund 15.94 16.51 TOTAL 150.95 147.97 48 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
(b) Defined contribution towards retirement benefits (Disclosure under AS-15): The following table sets out the status of the Gratuity and Leave Encashment Scheme Plans: ` IN LAKHS SR. PARTIC U L A R S Leave Encashment (Unfunded) Gratuity (Funded) NO. 2011-12 2010-11 2011-12 2010-11 I Amounts recognized in the Balance Sheet 1 Present value of obligation 748.85 692.66 1121.84 1056.45 2 Fair Value of Plan Assets NIL NIL 578.67 481.19 3 Unrecognized past service cost NIL NIL NIL NIL 4 Net Liability in the Balance Sheet 748.85 692.66 543.17 575.25 II Cost for the period 1 Current Service Cost 8.27 8.31 30.25 32.78 2 Interest on obligation 55.41 49.26 84.51 74.97 3 Expected return on plan assets NIL NIL -48.25 -38.52 4 Net Actuarial (Gains) / Losses recognised in the year 42.66 56.07 10.59 76.80 5 Past Service Cost NIL NIL NIL NIL 6 Losses/(Gains) on Curtailments and Settlements NIL NIL NIL NIL 7 Expenses recognised in the Statement of Profit & Loss 106.35 113.64 77.10 146.03 III Change in Benefit Obligations 1 Opening defined benefit obligation 692.66 615.74 1056.45 937.15 2 Prior period adjustments NIL NIL NIL NIL 3 Current Service Cost 8.27 8.31 30.25 32.78 4 Past Service Cost NIL NIL NIL NIL 5 Interest on obligation 55.41 49.26 84.51 74.97 6 Actuarial (Gains) / Losses 42.66 56.07 6.38 75.37 7 Benefits paid -50.16 -36.72 -55.75 -63.82 8 Closing defined benefit obligation 748.85 692.66 1121.84 1056.45 IV Changes in Plan Assets 1 Opening fair value of Plan Assets NIL NIL 481.19 366.89 2 Expected return on Plan Assets NIL NIL 48.25 38.52 3 Actuarial Gains / (Losses) NIL NIL -4.21 -1.43 4 Employers Contributions NIL NIL 109.19 141.04 5 Assets acquired in an amalgamation in the nature of purchase NIL NIL NIL NIL 6 Exchange differences on foreign plans NIL NIL NIL NIL 7 Benefits paid -50.16 -36.72 -55.75 -63.82 8 Closing fair value of Plan Assets NIL NIL 578.67 481.19 V Principal Acturial Assumptions 1 Rate of Discounting 8% 8% 8% 8% 2 Expected Return on Plan Assets - - 9.50% 9.50% 3 Rate of Increase in Salaries 5% 5% 5% 5% 4 Attrition Rate 1% to 3% 1% to 3% 1% to 3% 1% to 3%
I Govt. of India vide Notification No. 1007 published in Govt. Gazette dtd. 24th May, 2010 amended the Payment of Gratuity Act, 1972 for revision in the gratuity limit from existing ` 3.50 Lakhs to ` 10 Lakhs w.e.f. 24.05.2010. Consequent upon such amendment, the Company has been recognising the gratuity liability with a ceiling of ` 10 Lakhs based on acturial valuation as carried out by LIC of India since F Y 2009-10 and had accordingly provided the past liability and charged the same to P & L Account in that year itself. The current year’s liability is provided considering the ceiling of ` 10 Lakhs and charged the same to P & L Account for the year. II The erstwhile Gujarat Electricity Board has established a Master Trust to manage the affairs of the gratuity. Post restructuring, the Company has inherited the said Master Trust and managing the same for and on behalf of itself and its subsidiary companies. On account of this arrangement, the gratuity liability of subsidiary companies is also accounted for in the books of the Company. The total liability thus represents the liability of the Company as well as the liability of its subsidiary companies as under.
49 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
` IN LAKHS Sr. C O M P A N Y AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011 No. 1 Gujarat Urja Vikas Nigam Ltd. 543.17 575.25 2 Gujarat State Electricity Corporation Ltd. 11252.14 11890.92 3 Gujarat Energy Transmission Corporation Ltd. 11180.99 11410.00 4 Dakshin Gujarat Vij Company Ltd. 4619.22 4894.59 5 Madhya Gujarat Vij Company Ltd. 6370.19 6438.69 6 Paschim Gujarat Vij Company Ltd. 9550.60 9875.78 7 Uttar Gujarat Vij Company Ltd. 7756.14 8286.99 TOTAL 51272.45 53372.22 NOTE: 24 FINANCE COSTS
SR. ` IN LAKHS PARTICULARS st st NO. FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31 MARCH, 2012 MARCH, 2011 A Interest i - On Bonds and other Fixed Loans 5652.05 4208.12 ii - On Working Capital 2331.80 5440.75 SUB-TOTAL 7983.85 9648.87 B Financial Charges i Gurantee Fees/Charges 300.81 310.94 ii Bank Charges and Commission 139.70 115.54 iii Others 95.44 49.44 TOTAL 8519.80 10124.79 NOTE: 25 OTHER EXPENSES ` IN LAKHS SR. PARTICULARS FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 1 Repairs & Maintenance i Building 61.88 126.41 ii Others 456.30 164.16 SUB-TOTAL 518.18 290.57 2 Rent, Rates and Taxes 7.49 11.63 3 Insurance 6.24 5.70 4 Telephone & Postage Expenses 19.35 25.28 5 Audit Fees 5.84 5.74 6 Travelling & Conveyance 86.18 85.00 7 Printing & Stationery 44.55 21.64 8 Computer Expenses 3.18 5.77 9 Advertisement 3.90 15.33 10 Contributions & Charities 100.00 0.00 11 Electricity Charges 117.90 107.00 12 Loss on Sale of Assets 0.00 0.66 13 Discount to Cons. for Timely Payment of Bills 2609.58 664.05 14 Delay Payment Charges for Purchase of Power 681.25 0.00 15 Legal & Professional Fees 177.41 433.46 16 Expenses for Energy Conservation * 0.00 0.41 17 Miscellaneous Expenses 88.81 76.66 TOTAL 4469.86 1748.90 * During the year an expenditure of ` 706.13 lakhs (previous year ` 110.26 lakhs) was incurred towards Energy Conservation activites which has been set off against the grant received from Govt. of Gujarat for this purpose.
50 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
NOTE: 26 PRIOR PERIOD ADJUSTMENT ` IN LAKHS SR. PARTIC U L A R S FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011
Income 1 Interest Income 0.17 0.00 2 Excess Provision of Depreciation 22.42 0.00 3 Other Excess Provision 125.34 2080.77 SUB-TOTAL 147.93 2080.77 Expenses 1 Power Purchase 0.00 180.95 2 Admn. Expenses 0.32 9.85 3 Other Adjustments relating Prior Period 61.65 24.48 SUB-TOTAL 61.97 215.28 TOTAL 85.96 1865.49 NOTE: 27 EXCEPTIONAL ITEMS ` IN LAKHS SR. PAR T I C U L A R S FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 1 Customs Duty,Green Energy Cess & Clean Energy Cess 25360.42 0.00 TOTAL 25360.42 0.00 During the year the Company has accounted for an amount of ` 25360.42 Lakhs towards Customs Duty on purchase of power based on the orders passed by Hon’ble GERC on 21.10.2011, which may be recoverable from Subsidiary Distribution Companies. NOTE: 28 TAX EXPENSES ` IN LAKHS SR. PARTICU L A R S FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 1 Current Tax (MAT) 2720.00 2600.00 2 Income Tax Expense of Earlier Years’ Demand 3848.35 2400.00 TOTAL 6568.35 5000.00 i During the year, in accordance with the AS-22 “Accounting for taxes on income issued by The Institute of Chartered Accountants of India, the company has recognized deferred tax on the basis of “Income Approach”. The Company has huge amount of carried forward losses and unabsorbed Depreciation under the Income Tax Act and accordingly there is no virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Hence, as a matter of prudence, deferred tax assets for the year have not been recognized in books of accounts as the Company does not envisage taxable profit in the near future. The net effect in the books of accounts is, therefore, “NIL”. ii Deferred Tax on depreciation on the opening balances of the assets vested by the Government of Gujarat for the financial year 2005-06 under various notifications and Restructuring Plan have not been recognized considering the permanent difference. Further, consequential difference between the amount of deprecation for accounting purpose and tax purpose in respect of such assets in subsequent years would also not be considered as timing difference. The Deferred Tax Asset / Liability is worked out as under: ` IN LAKHS
FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st SR. PARTICULA RS MARCH, 2012 MARCH, 2011 NO. Deferred Tax Deferred Tax Deferred Tax Deferred Tax
Asset Liability Asset Liability 1 Depreciation 780.83 0.00 523.82 0.00 2 Provision for Leave Encashment 36.15 0.00 37.75 0.00 3 Gratuity 0.00 10.92 10.54 0.00 4 Others 0.00 11.80 0.00 10.78 5 Total Deferred Tax Asset / (Liability) 816.98 22.72 572.11 10.78 Net Deferred Tax Asset 794.26 561.33 Net effect of Deferred Tax Asset in Profit & Loss A/c -NIL- -NIL-
51 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
NOTE: 29 OTHER DISCLOSURES A Commitments: Estimated amount of Contracts remaining to be executed on Capital Account and not provided for (net of advances): ` IN LAKHS SR. PARTIC U L A R S FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 NIL NIL B Contingent Liabilities not provided for:
` IN LAKHS SR. PA R T I C U L A R S FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 1 Letter of Credit 40604.50 32447.00 2 Guarantees issued by Banks on behalf of the NIL NIL Company 3 Claims against the erstwhile GEB & the Company not acknowledged as debts i Purchase 14.72 14.72 ii Lease Finance availed by erstrwhile GEB 1756.00 1756.00 iii Power Purchase 75779.00 51673.00 iv Stamp Duty on mortgage deed for loans availed 1108.00 1108.00 by erstwhile GEB from LIC v Employees NOT ASCERTAINABLE NOT ASCERTAINABLE vi Disputed demand of Income Tax against NOT ASCERTAINABLE NOT ASCERTAINABLE erstwhile GEB vii Disputed demand of Income Tax against the Company NIL NIL SUB-TOTAL (3) 78657.72 54551.72 4 Corporate Guarantees given by the Company for and on behalf of the subsidiary companies a All Subsidiaries except Uttar Gujarat Vij UCO Bank 345450.00 UCO Bank 345450.00 Company Ltd. Consortium for Consortium for working capital working capital limits limits b Uttar Gujarat Vij Company Ltd. State Bank 36850.00 State Bank Of 36850.00 Of India India Consortium for Consortium for working capital working capital limits limits c Gujarat Energy Transmission Corporation Ltd. State Bank of 4678.00 State Bank of 5686.00 India for term India for term loan loan d Gujarat State Electricty Corporation Ltd. GSFS 131110.00 GSFS 83333.00 (Comfort letter) (Comfort letter) e Gujarat Energy Transmission Corporation Ltd. GSFS 135833.00 GSFS 54000.00 (Comfort letter) (Comfort letter) C Segment Reporting Since the Company has one segment, viz., Purchase and Sale of Power, there is no reportable segment. D Subsidy and Grants Various Subsidies and Grants received / receivable during the year from the Government of Gujarat have been apportioned amongst the subsidiary companies on appropriate basis.
52 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
E Impairment of Assets The Company does not have any “Cash Generating Unit” as defined in Accounting Standard-28 issued by the Institute of Chartered Accountants of India on “Impairment of Assets” and as such, no exercise for assessment of residual life of the assets is necessary. F Related Party Disclosure i As per Para 9 of A.S 18 on “Related Party Disclosure”, no disclosure is required in the financial statements as regards related party relationship with other state controlled enterprises and transactions with such enterprises. ii As an annual closing procedure, Inter Subsidiary Company balances duly reconciled have been transferred by all the subsidiary companies to the debit / credit of the Company’s account (GUVNL) and are reflected in above balances as appearing in Other Current Assets / Other Current Liabilities. iii During the current year the balances with all the subsidiary companies are fully reconciled. The balances as on 31st March as appearing in the respective companies’ books are as under:
` IN LAKHS SR. SUBSIDIA R I E S In the books of GUVNL In the books of Subsidiaries NO. 2011-12 2010-11 2011-12 2010-11 1 Gujarat State Electricity Corporation Ltd. 70835.12 (Cr) 34697.22 (Cr) 70835.12 (Dr) 34697.22 (Dr) 2 Gujarat Energy Transmission Corporation Ltd. 12565.55 (Dr) 36418.01 (Dr) 12565.55 (Cr) 36418.01 (Cr) 3 Dakshin Gujarat Vij Company Ltd. 23033.05 (Cr) 32418.78 (Cr) 23033.05 (Dr) 32418.78 (Dr) 4 Madhya Gujarat Vij Company Ltd. 12149.47 (Dr) 2554.51 (Dr) 12149.47 (Cr) 2554.51 (Cr) 5 Paschim Gujarat Vij Company Ltd. 103324.85 (Dr) 58268.16 (Dr) 103324.85 (Cr) 58268.16 (Cr) 6 Uttar Gujarat Vij Company Ltd. 33019.43 (Dr) 15302.84 (Dr) 33019.43 (Cr) 15302.84 (Cr) iv The ownership of the land on which Gujarat Energy Training & Research Institute (GETRI), a training institute promoted by the Company and its subsidiary companies, is constructed rests with GETCO while the ownership of the building rests with the Company. Similarly, the ownership of the premises where the Company has created Data Centre for e-Urja project rests with MGVCL. The Company has not made any lease or similar agreement with GETCO and MGVCL respectively. G Earnings Per Share ` IN LAKHS SR. PARTIC U L A R S FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 1 Profit After Tax ( ` in lakhs) 6729.35 7569.74 2 Wtd. Average number of Equity Shares Basic 4058056993 3870584319 Diluted 4058056993 3970584319 3 Face Value per Share (`) 10.00 10.00 4 Basic Earnings per Share (`) 0.1658 0.1956 5 Diluted Earnings per Share (`) 0.1658 0.1906 H Auditor’s Remuneration ` IN LAKHS SR. PART I C U L A R S FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 1 Audit fees 5.20 5.20 2 Reimbursements: a Service Tax 0.64 0.54 TOTAL 5.84 5.74 I Additional Information pursuant to the provision of paragraphs 3, 4—C & 4—D of Part II of Schedule VI to The Companies Act, 1956 (As certified by the Management):
53 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12 a Quantitative information in respect of Purchase and Sale of Power : FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st SR. MARCH, 2012 MARCH, 2011 PARTICULARS NO. MUs Amount MUs Amount
(` Lakhs) (` Lakhs) 1 Purchase of Power 71641.880 2429198.11 64645.466 2004115.40 2 Sale of Power 71641.880 2439248.80 64645.466 2011032.71 b Expenditure in Foreign Currency ` IN LAKHS SR. PARTICU L A R S FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 1 CIF Value of Imports Nil Nil 2 Remittances in Foreign Currency Nil Nil 3 Foreign Travel Nil 0.61 c Earnings in Foreign Currency ` IN LAKHS SR. PARTICULAR S FOR THE YEAR ENDED 31st FOR THE YEAR ENDED 31st NO. MARCH, 2012 MARCH, 2011 1 Earnings Nil Nil
J Previous year figures have been regrouped / rearranged / recast wherever necessary. K The balances of trade receivables, trade payables, loans and advances are subject to confirmation and reconciliation, if any. L Statement Of Management: i The current assets, loans and advances are good and recoverable and are approximately of the values as shown, if realized in the ordinary course of business unless and to the extent stated other wise in the Accounts. Subject to the notes and the method of accounting followed by the Company, provision for all known liabilities is adequate. There are no contingent liabilities except those stated in the notes. ii Balance Sheet, Statement of Profit & Loss and Cash Flow Statement read together with the Notes to the accounts , are drawn up so as to disclose the information required under the Companies Act, 1956 as well as give a true and fair view of the state of affairs of the Company as at the end of the year and results of the Company for the year under review. iii Since mandatory consolidation of accounts is not applicable to the Company, the management has decided not to prepare and present the consolidated Financial Statements. M During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and meassurement principle followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year’s figures in accordance with the requirements applicable in the current year.
As per our report of even date For and on behalf of the Board
For S.C.BAPNA & ASSOCIATES Chartered Accountants D.J.PANDIAN, IAS RAJ GOPAL, IAS Firm Reg. No.115649W Chairman Managing Director
S.C.BAPNA K. M. SHRINGARPURE PARTHIV BHATT Partner General Manager (F&A) Company Secretary Membership No.71765 Place : Gandhinagar Place : Gandhinagar Date : 26/09/2012 Date : 26/09/2012
54 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
STATEMENT PURSUANT TO SECTION 212(e) OF THE COMPANIES ACT, 1956 RELATING TO SUBSIDIARY COMPANIES Name of the Subsidiary Company Sr. Particulars Gujarat Gujarat Madhya Dakshin Uttar Paschim No. State Energy Gujarat Vij Gujarat Vij Gujarat Gujarat Vij Electricity Transmissi Company Company Vij Company Corporation on Ltd. Ltd. Company Ltd. Ltd. Corporation Ltd. Ltd. 1. Financial Year of March 31, March 31, March31, March 31, March 31, March 31, the Subsidiary ended on 2012 2012 2012 2012 2012 2012 2. Date from which they April 1, April 1, April 1, April 1, April 1, April 1, became subsidiary 2005 2005 2005 2005 2005 2005 companies 3. a) Number of shares 1458022424 498883340 242641422 267725547 237148722 462903896 held by Ltd. with its nominees in the subsidiaries as at 31st March, 2012 b) Extent of interest of 100% 97.56% 100% 100% 100% 100% holding company as at 31st March, 2012. 4. The net aggregate amount of the Profit/(loss) so far at it concerns the members of the holding Company a) Not dealt wih in the Holding Company’s Accounts i) For the financial year ended 31st March 2012 17243.81 24940.68 3597.19 7631.57 1244.90 931.30 (` in Lakhs) ii) For the previous financial years of the subsidiary companies since they become the 54322.47 40857.59 8294.15 11918.86 4386.52 5349.53 Holding Company’s subsidiary (` in Lakhs)
55 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
STATEMENT PURSUANT TO SECTION 212(e) OF THE COMPANIES ACT, 1956 RELATING TO SUBSIDIARY COMPANIES
b) Dealt wih in the Holding Company’s Accounts i) For the financial year NIL NIL NIL NIL NIL NIL ended 31st March 2012 (` in lakhs) ii) For the previous financial years of the subsidiary companies NIL NIL NIL NIL NIL NIL since they become the Holding Company’s subsidiary
For and on behalf of the Board
D.J.PANDIAN, IAS RAJ GOPAL, IAS Chairman Managing Director
K. M. SHRINGARPURE PARTHIV BHATT General Manager (F&A) Company Secretary
Place : Gandhinagar Date : 26/12/2012
56 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
PROXY GUJARAT URJA VIKAS NIGAM LIMITED Regd. Office: Sardar Patel Vidyut Bhavan, Race Course, Vadodara – 390 007
Folio No. No. of shares held:
I/We______
of ______being a Member/s of Gujarat Urja Vikas Nigam Limited, Vadodara hereby appoint ______of ______or failing him ______of ______as my/our proxy to vote for me/us and on my/our behalf at the EIGHTH ANNUAL GENERAL MEETING of the Company to be held on Saturday, 29th December, 2012 at 5.00 p.m at Conference Room,GUVNL,SP Vidyut Bhavan Race Course,Vadodara 390007 and any adjournment thereof.
Please affix Revenue Stamp Signed this______day of ______2012
Signature(s) of Member(s) across the Stamp
Note : The Proxy must be deposited at the Registered Office of the Company, not later than 48 hours before the time fixed for the Meeting.
------
ATTENDANCE SLIP
GUJARAT URJA VIKAS NIGAM LIMITED Regd. Office: Sardar Patel Vidyut Bhavan, Race Course, Vadodara – 390 007 (Please complete this attendance slip and hand it over at the entrance of the Meeting Hall.)
I hereby record my presence at the Eighth Annual General Meeting of the Company, held on Saturday the 29th December, 2012 at 5.00 p.m. at Conference Room,GUVNL, SP Vidyut Bhavan,Race Course, Vadodara 390007.
Folio No. No. of shares held:
Full Name of the Shareholder/Proxy :
Signature of Shareholder/Proxy :
Note : Only Shareholders of the Company or their proxies will be allowed to attend the Meeting.
57 8th GUJARAT URJA VIKAS NIGAM LIMITED Annual Report 2011-12
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