A year of amazing growth & incredible consolidation in power sector Our Vision To be the leading institutional partner for the power and allied infrastructure sectors in and overseas across the value chain.

Our Mission PFC would be the most preferred Financial Institution; providing affordable and competitive products and services with efficient and internationally integrated sourcing and servicing, partnering the reforms in the Indian Power Sector and enhancing value to its stakeholders; by promoting efficient investments in the power and allied sectors in India and abroad. We will achieve this being a dynamic, flexible, forward looking, trustworthy, socially responsible organization, sensitive to our stakeholders’ interests, profitable and sustainable at all times, with transparency and integrity in operations.

A year of amazing growth & incredible consolidation in power sector Table of Contents

04 Reference Information Independent Auditors Report on the 129 Standalone Financial Statement

05 Performance at a Glance Non Banking-Financial Companies 139 Auditors Report 10 Letter to Shareholders

140 Comments of the C&AG 16 Notice

141 Balance Sheet 26 Directors’ Profile

142 Profit & Loss Statement Report of the Board of Directors 30 2018-19 144 Cash Flow Statement

82 Management Discussion and Analysis Report Independent Auditor’s Report on 216 the Consolidated Financial Statements 86 Integrated Reporting

223 Comment of the C&AG on Report on Corporate Consolidated Financial Statements 89 Governance

225 Consolidated Balance Sheet Certificate on Corporate 110 Governance 226 Consolidated Profit & Loss Statement 111 Business Responsibility Report

230 123 Secretarial Audit Report Consolidated Cash Flow Statement

33rd Annual Report 2018-19

REFERENCE INFORMATION Registered Office Creighton Energy Limited# EESL EnergyPro Assets Limited# 'Urjanidhi', Anesco Energy Services (South) Limited# 1, Barakhamba Lane, EPAL Holdings Limited# Connaught Place, New -110001 Edina Power Services Limited# Tel. No. : (91) (11) 23456000 Edina UK Limited# Website: http://www.pfcindia.com Armoura Holdings Limited# Edina Manufacturing Limited# Subsidiaries (as on March 31, 2019) # Edina Acquisition Limited PFC Consulting Limited Edina Limited# Power Equity Capital Advisors Private Limited Edina Australia Pty Limited# Chhattisgarh Surguja Power Limited Stanbeck Limited# Coastal Karnataka Power Limited Edina Power Limited# Coastal Maharashtra Mega Power Limited Coastal Tamil Nadu Power Limited Shares Listed at Orissa Integrated Power Limited National Stock Exchange of India Limited Sakhigopal Integrated Power Company Limited BSE Limited (formerly known as Bombay Stock Ghogarpalli Integrated Power Company Limited Exchange Limited) Tatiya Andhra Mega Power Limited Deoghar Mega Power Limited Depositories Cheyyur Infra Limited Odisha Infrapower Limited National Securities Depository Limited Deoghar Infra Limited Central Depository Services (India) Limited Bihar Infrapower Limited Bihar Mega Power Limited Company Secretary Jharkhand Infrapower Limited Shri Manohar Balwani Ballabhgarh-GN Transmission Company Limited* Tanda Transmission Company Limited* Auditors Mohindergarh-Bhiwani Transmission Limited* M. K. Aggarwal & Co., Chartered Accountants South-Central East Delhi Power Transmission Limited* Gandhi Minocha & Co., Chartered Accountants Bijawar-Vidarbha Transmission Limited* Shongtong Karcham-Wangtoo Transmission Limited* Secretarial Auditors Vapi II North Lakhimpur Transmission Limited* Lakadia-Vadodara Transmission Project Limited* M/s Agarwal S. & Associates Bikaner-Khetri Transmission Limited* Company Secretaries Fatehgarh-II Transco Limited* Bhuj-Il Transmission Limited* Registrar & Share Transfer Agent REC Limited Karvy Fintech Private Limited Energy Efficiency Services Limited "Karvy Selenium Tower B", REC Transmission Projects Company Limited^ Plot No. 31 & 32, REC Power Distribution Company Ltd^ Financial District, Nanakramguda, Gachibowli, Koderma Transmission Limited^ Hyderabad-500 032, Telangana, India Mandar Transmission Limited^ Tel: +91 40 67162222 Dinchang Transmission Limited^ Email: [email protected] Chandil Transmission Limited^ Website: www.karvyfintech.com Dumka Transmission Limited^ Bhind-Guna Transmission Limited^ Bankers Jam Khambaliya Transco Limited^ Reserve Ajmer Phagi Transco Limited^ WRSS XXI (A) Transco Limited^ Udupi Kasagode Transmission Limited^ Bank of India Khetri Transco Limited^ ICICI Bank Lakadia Banaskantha Transco Limited^ HDFC Bank

* Through PFC Consulting Limited ^ Through REC Ltd. #Through EESL

4 Corporate Overview Directors' Report Financial Statements this 16 498 2017. in 2,640 9,816 2,863 6,953 95230 67678 29253 66522 1, 40,648 28,827 46,204 13,357 28,851 19,036 2018-19 1,90,324 . Accounting stated

April 13 1 was 498 (Indian GAAP 6925 2,640 5,845 1,458 4,387 16233 64414 25135 49214 34,316 18,260 10,525 25,980 20,135 1 accordingly 2017-18 1,93,829 AS transition Previous Ind 10 of Companies to 103 499 51 2983 2126 2,640 8,444 2,000 2,401 62798 19592 65007 27019 21909 the under 32,785 100603 date 2016-17 1,89,743 restated under year of amazing growth & growth of amazing year A fective 13 prepared ef 107 137 467 been 61 1320 1000 7572 9060 2947 1 34446 10776 65042 46588 25826 52735 27564 18504 the 171 notified 2015-16 have periods and AS) incredible consolidation in power sector in power consolidation incredible 1 1 (Ind 1 5 450 2018 1320 9731 4064 8378 2419 5959 30899 14585 60784 44691 16284 34188 24907 16529 1, 159393 2014-15 April corresponding Standards the from for attachments/annexures its Accounting figures and amended) (as T A GLANCE Indian Report financial TIONS 2015 TS ear) Y and adopted ax T ear) Rules, ax erm Rupee Loans Y erm Rupee Loans T T T results ear) Y Report/Board After Company Foreign Currency Loans (incl. Foreign Currency Notes) Bonds Long Short in Crore) in Crore) in Crore) ARTICULARS otal Income otal Expenses ax Expense The Standards) Financial Annual ` ` ` Equity Capital ( RESOURCES (At the end of the Interest Subsidy Fund from GoI Interest Subsidy Fund Reserves and Surplus Borrowings: (i) (ii) (iii) (iv) Loans and Grants Sanctioned ( FINANCING OPERA (During the Loans and Grants Disbursed Repayment by Borrowers to PFC Repayment by PFC to Lenders T WORKING RESUL (For the ( T Profit Before T Profit NO. OF EMPLOYEES P l ll III IV Note: PERFORMANCE A PERFORMANCE 33rd Annual Report 2018-19

LOANS SANCTIONED

116233 120000 100603 95230 100000

80000 65042 60784 60000

40000

20000

0 2014-15 2015-16 2016-17 2017-18 2018-19

CUMULATIVE DISBURSEMENT Sector-Wise

73% 14% 6% 7%

State Sector Private Sector Joint Sector Central Sector

6 Corporate Overview Directors' Report Financial Statements 23% Others* 67678 2018-19 64414 2017-18 year of amazing growth & growth of amazing year A 12% Distribution incredible consolidation in power sector in power consolidation incredible 62798 2016-17 7 TIVE DISBURSEMENT Discipline-Wise LOANS DISBURSED LOANS 7% 46588 2015-16 CUMULA ransmission T 44691 2014-15 0 58% Generation 20000 80000 60000 40000 120000 100000 33rd Annual Report 2018-19

PROFIT AFTER TAX

5959 6113 2126 4387* 6953* 7000

6000

5000

4000

3000

2000

1000

0 2014-15 2015-16 2016-17 2017-18 2018-19

*As per Ind AS Accounting System

COMPARISON OF KEY INDICATORS FY 2018-19 Vs. FY 2017-18

`3,14,667 cr. `6,953 cr.

13% `2,79,329 cr. 58% `4,387 cr. 26bps 8.21%

7.95% Loan Assets (Gross) Cost of Funds PAT

8