Mangalore Electricity Supply Company Limited MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
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17TH ANNUAL REPORT 2018 –19 Mangalore Electricity Supply Company Limited MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED BOARD OF DIRECTORS Sl.No. Shriyuths/Smt., 1 Dr. S. Selvakumar IAS., : Chairman 2 Snehal R. IAS., : Managing Director 3 N Raghuprakash : Director (Technical) 4 Meera Srivastava IRS., : Director 5 Dr. R.C. Chetan, IRS., : Director 6 N. Thimmegowda : Director 7 A.N Jayaraj : Director 8 T R Ramakrishnaiah : Director CORPORATE OFFICE “MESCOM BHAVANA”, Kavoor Cross Road, Bejai, Mangaluru - 575 004. WEBSITE www.mesco.in CORPORATE IDENTITY No. (CIN): U40109 KA 2002 SGC 030425 PAN : AADCM7029H GSTIN : 29AADCM7029H1ZA BANKERS: 1. Syndicate Bank 2. Canara Bank 3. State Bank of India 4. Vijaya Bank (now Bank of Baroda) 5. Corporation Bank 6. Karnataka Bank 7. Punjab & Sindh Bank 8. Indian Bank 9. Axis Bank 10. Union Bank of India COMPANY SECRETARIAL Sri. K.T. Hiriyanna, FCS., Authorised Signatory STATUTORY AUDITORS M/s. Gopalaiyar and Subramanian, Chartered Accountants, Coimbatore COST AUDITORS M/s. N.S. & Associates, Cost Auditors, Bengaluru SECRETARIAL AUDITORS M/s. Ullas Kumar Melinamogaru & Associates, Mangaluru 2 ANNUAL REPORT 2018-19 TABLE OF CONTENTS 1. Directors' Report .... 4 2. Secretarial Audit Report .... 37 3. Addendum to the Directors' Report .... 51 4. Auditors' Report .... 55 5. Annexures to the Auditors' Report .... 61 6. Comments of the Comptroller and Auditor General .... 69 of India on the Annual Accounts 7. Balance Sheet .... 70 8. Statement of Profit and Loss .... 71 9. Cash Flow Statement .... 72 10. Statement of Changes in Equity .... 73 11. Notes on Financial Statements & Significant Accounting Policies .... 74 12. Vital Statistics ... 117 1. ¤zÉÃð±ÀPÀgÀ ªÀgÀ¢ .... 125 2. ¸ÉPÉæmÉÃjAiÀįï Drmï ªÀgÀ¢ .... 153 3. ¤zÉÃð±ÀPÀgÀ ªÀgÀ¢UÉ C£ÀħAzsÀ .... 166 4. ¯ÉPÀÌ ¥Àj±ÉÆÃzsÀPÀgÀ ªÀgÀ¢ .... 171 5. ¯ÉPÀÌ ¥Àj±ÉÆÃzsÀPÀgÀ ªÀgÀ¢UÉ C£ÀħAzsÀUÀ¼ÀÄ .... 176 6. ¨sÁgÀvÀ ¸ÀgÀPÁgÀzÀ ¤AiÀÄAvÀæPÀgÀÄ ªÀÄvÀÄÛ ªÀĺÁ¯ÉÃR¥Á®gÀ ºÉýPÉUÀ¼ÀÄ .... 184 7. D¹Û ºÉÆuÉ ¥ÀnÖ .... 185 8. ¯Á¨sÀ ªÀÄvÀÄÛ £ÀµÀÖ ¥ÀnÖ .... 186 9. £ÀUÀzÀÄ ºÀjªÀÅ ¥ÀnÖ .... 187 10. §AqÀªÁ¼ÀUÀ¼À°è£À §zÀ¯ÁªÀuÉAiÀÄ «ªÀgÀuÁ ¥ÀnÖ .... 188 11. ºÀtPÁ¸ÀÄ «ªÀgÀuÁ ¥ÀnÖAiÀÄ n¥ÀàtÂUÀ¼ÀÄ ºÁUÀÆ .... 189 ¯ÉPÁÌZÁgÀzÀ ¥ÀæªÀÄÄR PÁAiÀÄð¤ÃwUÀ¼ÀÄ 12. ¥ÀæªÀÄÄR CAQ CA±ÀUÀ¼ÀÄ .... 245 3 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED DIRECTORS' REPORT FOR FY 2018-19 1. The Board of Directors herewith present the 17th Annual Report on the business and operations of the Company along with the audited accounts for the year ended 31st March, 2019 duly expressing its sincere thanks to the esteemed consumers and duly recognizing with gratitude, the guidance and efforts of predecessor Chairman and Directors who have served in the Company. Mangalore Electricity Supply Company Limited (MESCOM) being wholly owned Government of Karnataka undertaking, was awarded with the Chief Minister's Annual Award i.e., “Rathna 2014-15”, is engaged in distribution of electricity in four districts of Karnataka i.e., Dakshina Kannada, Udupi, Shivamogga and Chikmagaluru. It has performed creditable in 2018-19 also. 2. Company having a working strength of 5489 employees is serving 2369278 consumers of various category has achieved an all-time record turnover of about ` 3428.10 Crores during the year 2018-19. 3. The status of the Company as on 31-03-2019 at a glance: Area of Supply and Distribution (Sq. Km.) 24,049 Number of sub stations 400 KV, 220 KV, 110 KV, 66 KV (of KPTCL) 89 Number of 33 KV sub stations 40 Number of Distribution Transformers 75080 Length of LT Lines (in RKMs) 82959 Length of 11 KV Lines (in RKMs) 38772 Length of 33 KV Lines (in RKMs) 848 4. Consumer Base As on 1st April 2018 the Company had a consumer base of 2283734 No's. With the additional of 85544 No's of new consumers during the year the number of consumers at the end of the year March 2019 stood at 2369278 No's, Comprising of the following Categories. Tariff Description No of Consumers as on 31.03.2019 LT-1 BJ/KJ 188004 LT-2a&b Domestic lighting and AEH 1550811 LT-3 Commercial 212399 LT-4 IP Sets 330660 LT-5 Industries 31174 LT-6a Public water supply 15391 LT-6b Public lighting 21621 LT-7 Temporary Supply 17096 LT -TOTAL 2367156 HT-1 water supply 104 HT-2a Industries 891 HT-2b Commercial 735 HT-2c Hospitals 292 HT-3 Lift Irrigation 28 HT-4 Residential Colony supply 55 HT-5 Temporary Supply 17 HT -TOTAL 2122 LT+HT -TOTAL 2369278 4 ANNUAL REPORT 2018-19 5. Review of Balance Sheet and Statement of Profit and Loss: Review of Balance Sheet and Statement of Profit and Loss for the year ending March 31st 2019 with the previous Year ending 31.03.2018 is as detailed below: I. Analysis of Balance Sheet (` in lakh) As at As at Increase (+)/ % Sl. No. Particulars 31.03.2019 31.03.2018 Decrease (-) variation I ASSETS I Non-Current Assets (a) Property, plant and Equipment 189480.86 150886.55 38594.31 25.58 (b) Capital Work in progress 49698.97 17705.56 31993.41 180.70 (c) Intangible Assets under 1006.81 776.36 230.45 29.68 Development (d) Financial Assets i Investments 251.00 251.00 - - ii Loans 801.62 728.65 72.97 10.01 iii Other financial assets 12301.74 12301.74 - - (e) Non-current tax assets 3187.88 2883.36 304.52 10.56 (f) Other non-current assets 6577.93 20345.80 -13767.87 -67.67 Total Non-current Assets 263306.81 205879.02 57427.79 II Current Assets (a) Inventories 5851.89 3157.45 2694.44 85.34 (b) Financial Assets i Trade receivables 40935.32 39452.68 1482.64 3.76 ii Cash and cash equivalents 6370.13 3356.79 3013.34 89.77 iii Bank Balances other than (ii) 1020.34 6.84 1013.50 14817.25 above iv Loans 112.58 116.50 -3.92 -3.36 v Other Financial Assets 142191.87 123190.11 19001.76 15.42 (c) Current Tax Assets 568.52 265.73 302.79 113.95 (d) Other current Assets 232.79 197.44 35.35 17.90 Sub-total 197283.44 169743.54 27539.90 III Assets held for sale 523.87 575.37 -51.50 -8.95 IV Regulatory Deferral Account 63552.22 91190.10 -27637.88 -30.31 Total Assets 524666.34 467388.03 57278.31 LIABILITIES I Equity (a) Equity Share Capital 48182.02 35807.02 12375.00 34.56 (b) Other Equity 28404.18 25164.48 3239.70 12.87 Total Equity 76586.20 60971.50 15614.70 II Non-current Liabilities (a) Financial liabilities i Borrowings 73212.35 59895.76 13316.59 22.23 ii Trade Payables 57961.02 60381.36 -2420.34 -4.00 iii Other Financial Liabilities 122506.78 107895.15 14611.63 13.54 5 MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED Increase (+)/ % Sl. No. Particulars 31.03.2019 31.03.2018 Decrease (-) variation (b) Provisions 5211.40 5240.86 -29.46 -0.56 (c) Deferred income 40224.62 20565.60 19659.02 95.59 (d) Other Non-current liabilities 48.03 48.49 -0.46 -0.95 Total Non-current liabilities 299164.20 254027.22 45136.98 III Current Liabilities (a) Financial Liabilities i Borrowings 35489.26 31418.72 4070.54 12.96 ii Trade Payables 22486.82 27052.54 -4565.72 -16.88 iii Other Financial Liabilities 72830.48 79207.24 -6376.76 -8.05 (b) Other current liabilities 14629.54 13164.55 1464.99 11.13 (c) Provisions 1823.47 961.50 861.97 89.65 (d) Deferred income 1656.37 584.76 1071.61 183.26 Total Current Liabilities 148915.94 152389.31 -3473.37 Total Liabilities 448080.14 406416.53 41663.61 Total equity and Liabilities 524666.34 467388.03 57278.31 ASSETS 1. Non-Current Assets vProperty Plant and Equipment: This is increased by ` 38594.31 lakh due to categorization of Capital Works during the Year. vCapital Work in progress: It is increased by ` 31993.41 lakh due to the Capital expenditure incurred in respect of Scheme works such as DDUGJY, IPDS and other ongoing Station Works, and Improvement works, etc. vIntangible assets: This is increased by ` 230.45 lakh due to incurring cost towards the development of software for GPS Survey, Validation, Udpation & Enumeration of IP Sets. vLoans: It is increased by ` 72.97 lakh, mainly due to capitalization of interest earned on the deposit with M/s Coastal Tamilnadu Power Ltd., and due to deposits made with Courts in various cases. vNon-current tax Assets: It is increased by ` 304.52 lakh due to payment of advance tax for FY 2018-19. vOther Non-current Assets: It is decreased by ` 13767.87 lakh (net) mainly due to capitalization of advances paid to Suppliers and Contractors for supplies/works to the extent of ` 14932.82 lakh. There is increase of ` 1164.95 lakh due to accounting of MAT Credit and other items. 2. Current Assets: vInventories: It is increased by ` 2694.44 lakh due procurement of essential line materials for works. vTrade receivables: It is increased by ` 1482.64 lakh mainly due to non-receipt of electricity charges from water supply and street light installations of Local bodies. vCash and cash equivalents: It is increased by ` 3013.34 lakh due to increase in holding of cash on hand. vOther Bank Balances: It is increased by ` 1013.50 lakh due to depositing of unutilized funds received for IPDS schemes and increase in deposits made with Banks for obtaining Bank Guarantees. 6 ANNUAL REPORT 2018-19 vLoans: It is marginally decreased by ` 3.92 lakh. vOther financial assets: It is increased by ` 19001.76 lakh (net).