15th ANNUAL REPORT 2017 - 18

BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED (A GOVERNMENT OF INDIA ENTERPRISE) YEARS OF CELEBRATING THE MAHATMA “Cleanliness is next to Godliness” Corporate Mission

“To plan, execute and operate an integrated programme of Fast Breeder Technology based Nuclear Power Stations as a safe, environmentally benign and economically viable source of electrical energy”

CONTENTS PAGE NO. Board of Directors & Company Information 1

Chairman & Managing Director’s Statement 2

Directors’ Report 4

Independent Auditors’ Report to the Members 25

Financial Statement for the year 2017-18 31

Comments of the C & AG 59 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

BOARD OF DIRECTORS

Dr. Kallol Roy Shri K.N.Vyas Chairman & Managing Director Director

Dr.Arun Kumar Bhaduri Shri Rameshwar Prasad Gupta Shri Ramendra Gupta Director Director Independent Director

Shri M.A.Inbarasu Shri A.R.Sule Shri Aniruddha Kumar Director Director Director

Shri V.Rajan Babu Shri V.Murugaiyan Shri A.Jyothish Kumar Shri D.M.Jagadeesh Director (Technical) Director (Finance) & CFO Director (Operations) Director (Constructions) Company Information Statutory Auditors: DAE Nodal Centre M/s. Ramesh & Ramachandran Chartered Accountants Dr.Ambedkar Road, Old No. 29/3, New No. 39 Viswanathapuram Pallavaram - Cantonment, Main Road, Kodambakkam, Chennai - 600 024 Chennai - 600 043. Secretarial Auditors: CIN : U40104TN2003GOI051811 M/s. GPV & Associates Company Secretaries in Practice 17/8, 8th East Street, Kamaraj Nagar, Thiruvanmiyur, Chennai - 600 041 Main Banker: Shri B.T.Sangu Website: www.bhavini.nic.in State Bank of India CS.V.Viswanathan Executive Director (HR) Company Secretary Invitee

1 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED CHAIRMAN & MANAGING DIRECTOR'S STATEMENT Dear Members, I welcome you all to the 15th Annual General Meeting of The future growth of BHAVINI is being actively your Company. articulated, with the plan of constructing two FBRs of 600 MWe capacity (twin unit), in the adjoining site of I would like to inform you that during the past one year, the present PFBR. Both IGCAR & BHAVINI are presently although all of us involved with the commissioning of on the job of conceptualization of the new design (600 PFBR, which includes both the design groups from IGCAR MWe) and then going ahead with the detailed along with all the field engineers from BHAVINI, have engineering. Presently, the preliminary layout drawings been working relentlessly for commissioning of the of these twin-units have been made ready and being various systems & sub-systems, the net progress has studied by the engineers of Bhavini, who had earlier been slow, owing to deviation in performance observed, been involved in the erection & installation of all the in certain systems & equipment. In the initial stages of Systems, Structures & Equipment (SSE) in PFBR, for the commissioning of the secondary sodium loops, there providing experience feedback, towards making were a few consecutive commissioning related problems necessary modifications in the proposed layout. of the electro-magnetic pumps in one of the loops, which could be effectively resolved after carrying out As per the present deliberations with DAE, construction appropriate modifications & marginal design changes of these reactors is expected to commence in 2021 by of the electro-magnetic pump. This took almost six months, during which one of the loops kept operating which time, adequate performance feedback on full continuously and the Main Vessel remained heated. power operation from PFBR is expected to be available, Soon after re-commissioning of the loop, after the for factoring in the proposed 600 MWe designs. In long modified electro-magnetic pumps were installed, the term, it is further proposed to build four more reactors, main secondary sodium pump indicated certain FBR-3, 4, 5 & 6, in a different site, towards which a site- deviations in its performance when attempting to selection committee has been formed. Presently, as a characterize for full speed operation and hence the pre-requisite to initiate the construction activity of FBR-1 same had to be removed and re-installed with a spare. & 2, the construction of a Site Assembly Workshop (SAS) Presently, this loop is again being made ready for and the electrical substation for the same is in progress. commissioning and further preparations are underway for commissioning of the primary system. As a parallel The earlier introduced administrative measures activity, the Transfer Arm, which forms a part of the (towards improvement in participation of middle- fuelling machinery, also had to undergo certain management in a large number of administrative issues, modifications, since there were indications of deviations requiring deliberation) resulting in the formation of two in its performance, during the trial tests. Presently the Group-level committees and one Apex Committee, have Transfer Arm is also ready for re-installation. All these been reasonably successful in bringing about smooth above activities, has resulted in a significant shift in the functioning of HR related issues and also employee project progress and today all efforts are being put for satisfaction w.r.t. enhancement of transparency & achieving criticality by middle of 2019. decentralisation of the company management.

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The Neighbourhood Development Committee, continues I would like to express my sincere gratitude to the to closely review the applications from various villages Department of Atomic Energy, various other Ministries in the neighbourhood, w.r.t. their urgent social and Departments of the Government of India, Atomic requirements/needs. Some of the major CSR activities, Energy Regulatory Board for their support. pertaining to building of hygienic toilets in the neighbourhood village schools and a clean waiting hall in the maternity ward of the state government health I would also like to place on record the excellent support unit, have earned BHAVINI a good amount of good-will extended by Indira Gandhi Centre for Atomic Research, in the community. Since BHAVINI is not yet a revenue- Nuclear Power Corporation of India Limited, Bhabha earning company, the resources are limited for CSR Atomic Research Centre, Nuclear Fuel Complex, Heavy activities. However, as soon as PFBR starts generating Water Board, Electronics Corporation of India Limited power, the allocations for CSR will get proportionally and other units of Department of Atomic Energy in the increased and further societal activities, pertaining to implementation of PFBR. I am thankful to the Auditors, Education & Skill Development, Human Health Care & the Comptroller and Auditor General of India for their Animal Welfare, Rural Development & Environment Management, etc. would be considered for services and valuable advice. implementation. I express my sincere thanks to Directors on the Board, each and every employee, supporting industries, Atomic Energy Commission (AEC) has issued Guidelines consultants and other stakeholders of your Company. inter-alia on Corporate Governance in the year, 2009. Considering the importance of Corporate Governance, BHAVINI (a non-listed CPSE) generally complies with the Sd/- Corporate Governance guidelines issued by AEC. (Dr. Kallol Roy) Chairman & Managing Director

Place: Chennai Date: 28th September 2018

3 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED DIRECTORS' REPORT Dear Members, With respect to tertiary system, Performance guarantee Your Directors are pleased to present the 15th Annual tests of auxiliary sea water pumps and condenser Report, together with the Audited Financial Statements cooling water pumps were successfully completed. Two For the year ended 31st March 2018. streams of electro chlorination plant were commissioned and the performance was checked at full capacity. The PROJECT PROGRESS: Prototype Fast Breeder Reactor (PFBR) steam generator tube side preheating with hot water circulation by operating Auxiliary boiler and motor After erection and integration of all the systems both driven boiler feed pump was carried out successfully. in Nuclear Island and in Power Island, commissioning of the individual systems and the integrated commissioning are in progress. Pre-project activities of FBR 1 & 2: During this period, various commissioning activities, BHAVINI-IGCAR task force has prepared Plant layout for pertaining to the secondary sodium loops, are in 2x600 MWe, based on the design inputs and the progress and initially all the sodium circuits in loop-1&2 experiences gained during construction, manufacture, were preheated and sodium flow was established in erection and commissioning of PFBR systems. Site Assembly purification circuits. Subsequently sodium in both the shop (SAS) building work is in progress. The foundation loops was filled and purified to the desired plugging works have been completed and super structure works are temperature and trial runs of Secondary Sodium Pumps in progress. Site Evaluation Report (SER), Prefeasibility (SSP) -1 & 2 were carried out. During the commissioning report and Form-1 &1A to obtain fresh Terms of Reference trials of the secondary loops and characterization of the SSP-1 & 2, certain deviations were noted in the (ToR) for 2 x 600 MWe are being updated. performance of one of the pumps, which was subsequently, replaced with a spare. A detailed study FINANCIALS: of the removed pump was carried out with the help of a) During the year 2017-18; No amount was drawn the designers and additional restraints are being st augmented to the piping of both loop-1 & 2, in order to towards equity. The total equity drawn till 31 ensure that piping reactions do not affect the pump March 2018 was `4588.20 Crores. The details operation. of equity drawn are as under:

The initial commissioning trials of the various fuel (` in Crores) handling system equipment, viz., Large Rotatable Plug, PFBR FBR-1&2 Total Small Rotatable Plug, Transfer Arm and Inclined Fuel Gol * NPCIL ** Total Gol Transfer Machine, were completed. Also, the verification 4314.52 227.08 4541.60 46.60 4588.20 & validation (V&V) of the computer based system for operating all the fuel handling equipment from handling * GoI – Government of India control room were completed. However, subsequent ** NPCIL – Nuclear Power Corporation of India Ltd trials of the transfer arm, at high temperature, indicated certain deviations in performance, for which the same b) Government of India, vide its letter no. 4/14/2013- was taken out and necessary modifications were carried Power/15504 dated 8.12.2014, has approved out and presently it is ready for installation and `1000 Crores as Government loan for financing the normalization. Commissioning trials and plans for V&V, debt portion of the project cost of PFBR, instead of are also in progress for the cell transfer machines. Preparations are also underway for commissioning of bonds guaranteed by Government of India. The the primary system, which will be taken-up, as soon as loan was to be spread over for two financial years the secondary systems are completely operational. (2014 – 16), on the following terms:

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i) The term of loan will be ten years from the date d) Va l u e o f a s s e t s c a p i t a l i z e d ( n e t o f of drawing the respective installment of the loan. deduction/adjustments/deletion) from inception till st 31 March 2018 is `356.19 Crores, which includes `6.97 Crores of the Fixed Assets capitalized during ii) There will be moratorium on interest and the year. repayment of the principal for the first five years on the Government loan from the date of drawal e) Value of Capital Work in progress as on 31st March of the loan in respective installment. Repayment 2018 is `5668.42 Crores, which includes `241.19 of the principal after the moratorium period will Crores spent during 2017 – 18 as “expenditure be in 5 equal installments along with interest during construction, pending allocation”. thereon. f ) Company has not accepted any deposits from Public.

iii) The rate of interest after the moratorium period g) Company has not given any loans, except to of five years and other terms and conditions of employees as per Schemes of the Company. loan will be as notified for investment loan by the h) Ministry of Finance. Company has not made any investments other than making term deposits with Banks.

During the year 2014 – 15, `300 Crores and i ) Company has not provided any guarantees / during the year 2015 – 16, the balance `700 security except for the purpose of normal operation Crores were drawn as Government loan. of the Company.

j ) Company has not entered any contracts or c) Total capital expenditure (CAPEX) for the year arrangements with related parties as per Sec. 2017-18 is `315.68 Crores. 188(1) of the Companies Act, 2013.

k) BHAVINI has filed an appeal against the Central CAPEX FOR 2017-18 (` in Crores) Electricity Regulatory Commission (CERC) order on Item Increase in the claim raised by Power Grid Corporation of India description 2016-17 2017-18 Expenditure Limited (PGCIL) which amounts to `99.99 crores as on 31st March 2018. Balance in Capital DIRECTORS: Work in 5341.89 5668.42 326.53 Shri Rameshwar Prasad Gupta, Additional Secretary, Progress NITI Aayog has been appointed as Part-time Director Balance in w.e.f. 20th October 2017. Shri A.R. Sule, Joint Secretary Fixed (R&D), DAE has been appointed as Part-time Director Assets 215.16 204.42 (10.74) (Net) w.e.f. 12th June 2018. Shri A. Jyothish Kumar, Outstanding Scientist has been appointed as Director Balance in th Intangibles 0.39 0.28 (0.11) (Operations) w.e.f. 5 July 2018. Shri D.M. Jagadeesh, (Net) Scientific Officer H+ has been appointed as Director (Constructions) w.e.f. 5th September 2018. Board Total 5557.44 5873.12 315.68 welcomes them.

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Shri K.A. David relinquished office of Director Implementation of Official Language Policy: (Operations) on 30 t h November 2017 on BHAVINI has always been striving to implement the superannuation. Shri K. Rajagopalan relinquished st Official Language Policy of the Govt. of India. Efforts office of Director (Constructions) on 31 December 2017 on superannuation. Board places on record its continued during the year 2017 – 18 also in this appreciation for their valuable contributions. direction. Accordingly, all the Office Orders, Circulars etc. were issued in bilingual. Officials were encouraged Independent Director has submitted declaration that he to put up notings in Hindi. Entries in all the service books meets the criteria of Independence as per section and Registers etc. are made in Hindi. The Annual Report 149(6) of the Companies Act, 2013. for the year 2016 – 17, was prepared and published in English and Hindi both. HUMAN RESOURCES: In pursuance of Govt. of India Policy, an Official As per policy, for implementation of PFBR, Fast Reactor Language Implementation Committee (OLIC) was Technological expertise of IGCAR and the management constituted in BHAVINI with CMD as its Chairman. The skills of NPCIL in the construction of Nuclear Power Committee holds its meeting regularly every quarter. plants are to be synthesized. Accordingly, 5 officials During the year 2017 – 18 four meetings of OLIC of the from IGCAR, 15 officials from NPCIL and 1 official from Corporation were held. In these meetings, the Govt. were posted in BHAVINI as on 31st March, 2018. Committee reviewed progress of implementation of In addition, 37 NPCIL officials, 2 IGCAR officials and 1 official language. The committee discussed and BARC official have been absorbed permanently in decided the actions to achieve the targets given in BHAVINI. Total Manpower as on 31st March, 2018 was Annual Programme, Incentive Schemes for the use of 480 which includes 419 directly recruited on the rolls of Hindi, actions to observe Hindi Fortnight and conducting BHAVINI. Hindi Diwas etc.

SC/ST/OBC reservation policies are being complied In order to encourage use of Hindi in day-to-day with and development of SC/ST personnel is being working “Hindi Fortnight” was celebrated in the month given paramount importance. of September 2017. Various competitions were organised during “Hindi Fortnight” and prizes to the The overall representation of the SC, ST & OBC winners of these competitions were distributed by CMD personnel are as follows: and other Senior Officers of BHAVINI. MoU, Demand for Grant, Parliamentary Questions, Outcome Budget Representation of SC, ST & OBC as on 31.03.2018 etc., are prepared in Hindi. Total No. of SC No. of ST No. Group No. of of OBC Employees Employees Employees Employees Apart from above, BHAVINI has been actively A 208 37 4 72 participating in the activities of Town Official Language B 147 37 3 68 Implementation Committee (TOLIC), Chennai. Quarterly progress reports with regard to progressive C 125 31 1 67 use of Hindi in BHAVINI were also sent regularly to TOTAL 480 105 8 207 Department of Official Language and DAE. % 100% 21.88 1.67 43.13

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SOCIAL WELFARE INITIATIVES: organizational objectives. It also helps to implement Pursuant to Section 135 of the Companies Act, 2013, system improvements by bringing more transparency to Annual Report on Corporate Social Responsibility curb malpractices and irregularities. Vigilance awareness is one of the important parameter of good activities for the year 2017–18 is given as Annexure – A. Corporate Governance.

EXTRACT OF ANNUAL RETURN: Periodical vigilance inspections were carried out by As per Section 92(3) of Companies Act, 2013, an Vigilance as part of Vigilance Management. extract of Annual return in Form MGT-9 is given as Annexure – B. The Vigilance Section has taken a number of initiatives and adopted innovative methods in spreading awareness and imparting knowledge to employees. THE RIGHT TO INFORMATION ACT, 2005: The Right to Information Act implemented in BHAVINI Some of the measures taken by the Vigilance are as and as per the provisions of the Act, the information under: required to be published is uploaded in the BHAVINI · Vigilance Awareness Week with the theme of official website and its relevant parts of section IV of the “Preventive Vigilance as a tool for good governance” Act are updated. The quarterly and Yearly status was observed in BHAVINI during the week from 30th report is being updated in the RTI Portal regularly as October to 4th November, 2017. Various programs on mandatory requirement. The Annual Report for the Vigilance were organized to create awareness and to Year 2017-18 has been updated. inculcate the preventive vigilance culture among the BHAVINI employees and the contract employees. The vigilance awareness week was observed with great As per the provision of the Act, One Appellate Authority enthusiasm, sense of purpose and keen involvement of and One Central Public Information Officer are large section of employees, family members and functioning at BHAVINI. nearby village children to create awareness about the preventive Vigilance among them. Forty Two requests were received directly to BHAVINI · “JYOTSANA” (Fifth Issue) – Annual edition of vigilance and Twenty Two requests were received on transfer th magazine was released by CMD, BHAVINI on 6 from other departments during the Year 2017-18 under November 2017. the Act. All the requests have been replied in prescribed time. Six appeals have been received by the · “Complaint handling policy” is made available on the Appellate Authority and the same was disposed in time. BHAVINI website for guidance of general public. Two cases were transferred to CIC during this period · E-Tendering, E-procurement and E-payment and it was disposed. procedures are ensured to be followed strictly as per the company guidelines. VIGILANCE: Vigilance is one of the important management function. · The contact details of CVO and other Vigilance It not only helps in eradicating corruption and functionaries are made available in the separate notice malpractices from the organization but also encourages boards at plant site, registered office and on BHAVINI the transparency and fair competition. Vigilance web site. Section works to sensitize and alert the employees · System improvement suggested and implemented are against malpractices and corruption to achieve as follows:

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· Scrutinizing of all employees AIPR as per CVC iv) All the street lights, double fencing lights and high Guidelines was followed. mast lightings are controlled by digital timer based control for ON and OFF. · Pursued with management for strict implementation of E-Tendering, E-Procurement, E-Payment and the same v) Corridor lightings switched off during 7 AM to 6 PM was implemented and followed. by duty security staff in all the office buildings. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF vi) During day time most of the lamps in sun light WOMEN AT WORKPLACE (PREVENTION, PROHIBITION exposed area like corridor & nearer windows in AND REDRESSAL) ACT, 2013: Nuclear Island and Power Island are being switched off. The Company has in place an Internal Complaints Committee to redress complaints received regarding FOREIGN EXCHANGE EARNINGS AND OUTGO: sexual harassment as required under The Sexual Harassment of Women at the Workplace (Prevention, (` in Crores) Prohibition & Redressal) Act, 2013. Particulars 2017-18 2016-17 There are no complaints of sexual harassment received during the year 2017 – 18. Foreign Exchange Earning Nil Nil CONSERVATION OF ENERGY: Foreign Exchange Outgo Nil Nil a) Energy conservation measures taken: CORPORATE GOVERNANCE: i) Company's first project, PFBR is in advanced stage A compliance report on Corporate Governance is given of commissioning. Design and engineering has taken in Annexure – C. adequate measures to implement energy conservation at the construction, Commissioning stage and later on SECRETARIAL STANDARDS: during plant operation. Secretarial Standards on Meetings of Board of Directors and Secretarial Standards on General ii) Maximizing use of daylight and modification of Meetings issued under Section 118(10) of the lighting system using energy efficient lamps have Companies Act, 2013 are complied with. helped us in an endeavor of energy conservation. MANAGEMENT DISCUSSION AND ANALYSIS: b) Additional investments and proposals for reduction Global Nuclear Power Scenario: of consumption of energy: Commercial nuclear power generation in the world is a mature, established technology, having accumulated Energy audit recommendations are being implemented over forty years of successful operation. at regular intervals. Nuclear Power – Safe And Environmentally c) Impact of measures at (a) and (b) above for Benign: reduction of energy consumption: Nuclear power is a clean, environmentally benign, Higher energy conservation awareness has yielded devoid of Green House Gas emissions and economically positive results, which includes: viable source of power generation. During nuclear power generation, a small quantity of radioactive i) As per MNRE guide line, 30kW grid connected waste is generated which is treated, immobilized in standalone solar power generation panel was installed glass / cement matrix and safely stored, thus the on the Simulator building for supplying the power to environment and public remains unaffected. lightings. Role of Nuclear Power and Potential in India: ii) 54 Nos. of 100 Watts incandescent lamp were India's nuclear power programme has three stages with replaced with 15 Watts LED lamp on Main Control Room an objective to utilize modest uranium and large thorium of Operation Island. reserves in the country for electricity generation. The first stage is based on Pressurised Heavy Water iii) 200 Nos. of 12W CFL were replaced with 10 Watts Reactors (PHWRs), using natural uranium as fuel. This LED lamps on Township. stage yields plutonium, which forms the basis of

8 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED development of second stage, using plutonium along Risk Management: with depleted uranium / thorium in Fast Breeder Reactors (FBRs). This stage yields more plutonium. In the BHAVINI has Risk Management Policy which identifies third stage, advanced power reactors based on key risk areas and formulates appropriate risk Uranium-Thorium cycle are envisaged for deployment. mitigation plans for taking corrective action. Nuclear energy offers the most potent solution to long- Internal Control System and their adequacy: term energy security. India has to successfully realize the three-stage development programme and thereby The Company has adequate internal control system tap its vast thorium resources to become truly energy commensurate with the nature and size of business which independent beyond 2050. The commercial meets the objectives of efficient use and safeguarding deployment of thorium requires a significant capacity of resources, compliance with statues, policies and of FBRs and development of technologies for thorium procedures and maintaining accuracy of recording of utilization. transaction and reporting the same promptly. The Challenges: scope of internal audit involves examination and evaluation of the adequacy and effectiveness of the Nuclear Power is inherently a high technology system of internal accounting, system and procedures. enterprise and that is the fundamental reason for not The observations raised out of the audit are subject to many countries having it. periodic review by Audit Committee. Although the inevitability of nuclear energy in energy mix is now universally accepted, there exist some DIRECTORS' RESPONSIBILITY STATEMENT: associated challenges. These emerge mainly from the The Directors confirm that public perception of risks associated with nuclear power, which are disproportionately higher than the a) in the preparation of the annual accounts, the actual risks. These include safety, radio-active waste applicable accounting standards had been followed management, costs and other perceived risks like effects along with proper explanation relating to material on health, security and proliferation. BHAVINI has departures; undertaken structured public awareness and communication campaigns and outreach activities to b) the directors had selected such accounting policies disseminate authentic information about safety, and applied them consistently and made judgments and radiation and other related aspects of nuclear power in estimates that are reasonable and prudent so as to give a transparent manner to various groups. a true and fair view of the state of affairs of the company at the end of the financial year and of the The availability of infrastructure for supply-chain and profit and loss of the company for that period; project execution, sites, human resource and investments are the other key challenges in implementation of the c) the directors had taken proper and sufficient care programme. for the maintenance of adequate accounting records in accordance with the provisions of this Act for Outlook: safeguarding the assets of the company and for Fossil fuel resources are not renewable, the worldwide preventing and detecting fraud and other irregularities; energy mix of today will prove to be unsustainable. Therefore, industry experts are supporting increased d) the directors had prepared the annual accounts on adoption of nuclear and renewable energy as well as a going concern basis; increased use of energy efficiency techniques. e) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws India has ambitious plan to generate electricity through and that such systems were adequate and operating nuclear reactors and rapid nuclear power capacity effectively. addition as the Government is facilitating. Robust outlook for BHAVINI is consequent to success in PFBR and Government plan for expansion of nuclear energy. OBSERVATIONS OF AUDITORS: a) Observations of Statutory Auditors: MoU Performance: The Directors inform the Stakeholders with pleasure Department of Public Enterprises awarded 'Fair' MoU that there is no qualification in the report of the rating for the year 2016-17. The expected MoU rating Statutory Auditors on the accounts of the Company for the year 2017-18 is in 'Poor' Category. for the financial year ended 31st March 2018.

9 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED b) Comments of Comptroller & Auditor General of ii) On appointment of another independent director, India: Audit Committee and Nomination & Remuneration Principal Director of Commercial Audit and Ex- Committee will be reconstituted inducting adequate Officio Member Audit Board-IV, New Delhi, after number of independent directors as required under conducting a supplementary audit, on the financial sections 177(2) and 178(1) of the Companies Act, 2013 statements for the financial year ended 31st March respectively. 2018, under Section 143(6)(b) of the Companies Act, 2013, has conveyed, vide their letter No. 695- iii) Government of India has been requested to PDCA/MAB-IV/HS/A/cs/BHAVINI/18-19/3616 appoint Woman Director to comply with the provisions dated 5th September 2018 that “On the basis of my supplementary audit nothing significant has come to of Section 149(1) of the Companies Act, 2013. my knowledge which would give rise to any comment upon or supplement to Statutory Auditors' report APPRECIATION: under Section 143(6)(b) of the Act”. The Board would like to express its gratitude to the c) Observations of Secretarial Auditors: Department of Atomic Energy, NITI Aayog and Atomic Energy Regulatory Board for their support. The Board i) The Company is yet to comply with provisions of of Directors would also like to place on record with Section 149 of the Companies Act, 2013 with regard to the appointment of adequate number of independent gratitude for the excellent support provided by Indira directors. As per Article 43 of the Company's Articles of Gandhi Centre for Atomic Research, Nuclear Power Association, the President of India shall appoint Corporation of India Limited, Heavy Water Board, Members of the Board. We have been informed that a proposal to appoint adequate number of independent Bhabha Atomic Research Centre, Nuclear Fuel Complex, directors is under consideration by the Government of Electronic Corporation of India Limited and other units India. of DAE and Indian Industries and consultants for ii) The Company has constituted an Audit Committee implementation of PFBR. The Board would further like and a Nomination and Remuneration Committee. The to place on record its appreciation for the services Company is yet to induct adequate number of rendered by Auditors. Board further acknowledges the independent directors in these Committees as required under sections 177(2) and 178(1) of the Companies Act, continuous optimal support by the neighbouring 2013 respectively. villages. The Board wishes to express its special iii) The Company is yet to appoint a Woman Director appreciation of hard work put in by each and every in its Board. employee of the Company.

The Secretarial Audit Report dated 18th July 2018 given by M/s. GPV & Associates, Company Secretaries For and behalf of Board of Directors in Practice for the financial year ended 31st March 2018 is attached as Annexure – D.

Board's explanation on the Secretarial Auditors' Sd/- observations in seriatim pursuant to Section 204(3) of (Dr. Kallol Roy) the Companies Act, 2013 are as under: Chairman & Managing Director Place: Chennai i) Present composition of Board of Directors includes one Independent Director. As per provisions of Section Date : 28th September 2018 149 of the Companies Act, 2013, requirement of independent director is two. Government of India has been requested to appoint another independent director to comply with the provisions of Section 149 of the Companies Act, 2013.

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ANNEXURE - A TO THE DIRECTORS’ REPORT

ANNUAL REPORT ON CSR ACTIVITIES FOR THE YEAR 2017 – 18

BHAVINI, being a responsible corporate entity, is conscious of its social obligations and sensitive to the needs of the people residing in the neighbourhood. BHAVINI is, therefore, committed to improving the quality of life of people by carrying out various social welfare programmes, mainly focusing on Education & skill development, Human Health Care & Animal Welfare, Rural Development and Environment Management.

1.The projects undertaken during the financial year 2017-18 are as given below:

(A) Education & Skill Development: a. Repair, renovation and painting of existing buildings located in Govt. Higher Secondary School at Pudupattinam and Govt. High School at Natham Kariyacheri.

b. Drilling bore well, construction of water tank and laying pipe line upto water tank for primary school at Lattur village.

c. Operating Remedial centre for children with Autism, specific learning and disability at BHAVINI Township, Anupuram.

(B) Rural Development: a. Laying renewal layer of asphalt over the existing concrete road between DAE township main gate and ECR at Kalpakkam.

b. Construction of overhead water tanks and laying distribution pipe line along with pump for Kollamedu (Perambakkam) village.

c. Construction of 60000 litre capacity overhead water tank for Sadurangapattinam village.

(C) Environment Management: a. Distribution of tree saplings.

b. Construction of Toilet facilities for the schools located in the villages Meyyur, Pudupattinam and Chinna Kadalur.

Web link of CSR Policy : www.bhavini.nic.in/Policy/CSR Policy 2.The composition of the CSR Committee:

> Chairman & Managing Director > Director, IGCAR > Independent Director

3.Average net profit of the company for last three financial years (2014-15, 2015-16, 2016-17): > `21,83,36,521/- (Bank interest on fixed deposits made for short period). 4.Prescribed CSR expenditure (two percent of the average net profit of the company): > ` 43,66,730/-

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5. Details of amount spent for CSR during the financial year:

(a)Total amount to be spent for the financial year: `60,00,000/- (b)Amount unspent, if any : `3,05,061/- (c)Manner in which the amount spent during the financial year is enclosed as Annexure-1. Total amount spent is ...... `56,94,939.

6. In case of the company has failed to spend the two percent of the average net profit of the last three financial years or any part thereof, the company shall provide the reasons for not spending the amount in its Board Report.

-Not applicable

7. A responsibility statement of the CSR committee that the implementation and monitoring of CSR policy, is in compliance with CSR objectives and Policy of the Company. Sd/- (L.Swamy Raju) -Complied CCE (FBR 1&2) & Chairman Implementation Committee. Sd/- . Director (Constructions) . Sd/- CMD Annexure – 1

Projects or Amount spent programmes on the project (1) Local area Amount or programmes Amount or other (2) outlay Sub-heads: Sector in Cumulative spent Direct Specify the (budget) (1) Direct Sl. CSR Project or which the expenditure up or through State and project or expenditure on No. activity identified project is to the reporting impleme- district where program– projects or covered period ( ) nting projects or wise programmes ` agency Programmes ( ) (2) Over- ` ( ) was heads: ` undertaken (`)

a. Repair, 12,68,261 renovation and painting of existing buildings located in Govt. Hr. Sec. School at Pudupattinam and Govt. High School at Natham Kariyacheri

b. Drilling bore well, construction of Education Local Area, water tank and & Skill Kancheepuram 1) laying pipe line 21,50,000 19,10,165 Direct Devel- District, Tamil upto water tank 3,93,504 opment Nadu for primary school at Lattur village c. Operating Remedial centre for children with Autism and specific learning and disability at 2,48,400 BHAVINI Township, Anupuram

12 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

Amount Projects or spent on the programmes project or (1) Local Amount Amount programmes area or other outlay Cumulative spent Sector in Sub-heads: (2) Specify (budget) expenditure Direct or Sl. CSR Project or which the (1) Direct the State and project or up to the through No. activity identified project is expenditure district where program– reporting impleme- covered on projects projects or wise period (`) nting or Programmes (`) agency programmes was (`) (2) Over- undertaken heads: (`) a. Laying renewal 7,12,799 layer of asphalt over the existing concrete road between DAE township main gate and ECR at Kalpakkam

b. Construction of 32,00,000 overhead (including 9,25,635 water tanks Local Area, 7,00,000 Rural and laying Kancheepu- for Human 2) Develop- 30,97,245 Direct distribution ram District, Health ment pipe line Tamil Nadu Care and along with Animal pump/motor Welfare) for Kollamedu (Perambakkam) village

c. Construction of 60000 litre 14,58,811 capacity over head tank for Sadurangapat- tinam village 40,000 a. Distribution of tree saplings. b. Construction of Toilet facilities Environ- Local Area, 6,47,529 for the schools ment Kancheepu- 3) located in the 6,50,000 6,87,529 Direct villages Manage- ram District, Meyyur , ment Tamil Nadu Pudupattinam and Chinna Kadalur

TOTAL 60,00,000 56,94,939

13 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED ANNEXURE - B TO THE DIRECTORS’ REPORT

Form No. MGT-9 EXTRACT OF ANNUAL RETURN As on the financial year ended on 31.03.2018 [Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]

1. REGISTRATION & OTHER DETAILS

1. CIN U40104TN2003GOI051811 2. Registration Date 22/10/2003 3. Name of the Company BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED 4. Category / Sub-category of the Company GOVERNMENT COMPANY Address of the Registered office DAE NODAL CENTRE, Dr. AMBEDKAR ROAD 5. PALLAVARAM – CANTONMENT, CHENNAI – 600 043 & contact details TAMILNADU, INDIA Phone: 044 – 22644066 Fax: 044 – 22643933 Web link: www.bhavini.nic.in/Publications/Annual Return 6. Whether listed company NO Name, Address & contact details 7. of the Registrar & Transfer Agent, Not applicable if any.

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (All the business activities contributing 10 % or more of the total turnover of the company shall be stated)

NIC Code of the % to total turnover S.No. Name and Description of main products / services Product / service of the company

Electric power generation and transmission by nuclear Project under 35104 1 power plants construction

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES All the business activities contributing 10% or more of the total turnover of the company shall be stated:- Not applicable since there is no holding, subsidiary and associate company

14 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) – A) Category-wise Share Holding -

No. of Shares held at the beginning of the year [As No. of Shares held at the end of the year [As on 31- on 31-March-2017] March-2018] % Change Category of during Shareholders % of % of the year Dema t Physical Total Total Demat Physical Total Total Shares Shares (i) Promoters (1) Indian

a) Individual / HUF - - - 0.00 - - - 0.00 -

b) Central Govt. - 43611200 43611200 95.05 - 43611200 43611200 95.05 NIL c) State Govt.(s) - - - 0.00 - - - 0.00 - d) Bodies Corp . (Nuclear Power - 2270800 2270800 4.95 - 2270800 2270800 4.95 Nil Corporation Of India Limited) e) Banks / FI - - - 0.00 - - - 0.00 -

f) Any other - - - 0.00 - - - 0.00 - Total shareholding of - 45882000 45882000 100 0.00% 45882000 45882000 100 NIL Promoter (A) (ii) Public Shareholding & Shares held by Custodian for GDRs & ADRs.

The company is owned by Government of India and the entire equity share capital is held by the Central Government and Nuclear Power Corporation Of India Limited (NPCIL).There is no public shareholding and no share is held by custodian for GDRs & ADRs.

B) Shar e holding of promoters – As stated in sub-para 'A' of part IV

C) Change in Promoters' Shareholding (please specify, if there is no change) – There is no change. D) Shareholding Pattern of top ten Shareholders: (Other than Directors, Promoters and Holders of GDRs and ADRs):

NIL since Company has only promoter shareholders.

E) Shareholding of Directors and Key Managerial Personnel: Directors and Key Managerial Personnel do not hold any equity shares as beneficial owners. V. INDEBTEDNESS - Indebtedness of the Company including interest outstanding/accrued but not due for payment.

15 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

Secured Loans Unsecured Total Deposits excluding Loans Indebtedness deposits

Indebtedness at the beginning of the financial year i) Principal Amount - 1000 - 1000 ii) Interest due but not paid - - - -

- iii) Interest accrued but not due - - - Total (i+ii+iii) - - - -

Change in Indebtedness during the financial year * Addition - - - - * Reduction - - - -

- - - - Net Change Indebtedness at the end of the financial year i) Principal Amount - 1000 - 1000

- ii) Interest due but not paid - - - iii) Interest accrued but not due - - - - Total (i+ii+iii) - 1000 - 1000

16 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

VI.REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL - A .Remuneration to Managing Director, Whole-time Directors and / or Manager: Name of MD/WTD/ Manager Director Director Director Particulars of (Finance) Director CMD (Operations) (Constructions) SN. (w.e.f. (Technical) Total Remuneration upto upto 31.12.2017 28.7.2017) Amount Dr. Kallol 30.11.2017 Shri V. Rajan Roy Shri K. Shri V. Babu Shri K.A. David Rajagopalan Murugaiyan

Gross salary

(a) Salary as per provisions contained in 3307475 1686906 4159529 4086410 3588889 16829209 section 17(1) of the Income-tax Act, 1961

1 (b) Value of perquisites u/s 2520 - 960 2100 2520 8100 17(2) Income- tax Act, 1961

(c) Profits in lieu of salary under section 17(3) ------Income- tax Act, 1961

2 Stock Option ------

3 Sweat Equity ------

Commission 4 - as % of profit ------others:

Others: (LSC & PC) PF 5 340200 469828 3416558 3536882 306155 8069623 Employer Contribution

Total (A) 3650195 2156734 7577047 7625392 3897564 24906932

Ceiling as per N/A N/A N/A N/A the Act N/A

B. Remuneration to other directors - There is no remuneration to other Directors, where as Sitting Fees of ` 153400/- (inclusive of Service tax) has been paid to Independent Director for the Board & its Committee Meetings attended during the year 2017 – 18.

17 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

C.REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD:

Key Managerial Personnel SN Particulars of Remuneration CEO CS CFO* Total

Gross salary

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, - 2907178 - 2907178 1961 1 (b) Value of perquisites u/s 17(2) - - - - Income-tax Act, 1961

(c) Profits in lieu of salary under section - - - - 17(3) Income-tax Act, 1961

2 Stock Option - - - -

3 Sweat Equity - - - -

4 Commission - - - -

- as % of profit - - - -

Others: - - - -

5 Others: (PF Employer Contribution) - 248732 - 248732

Total - 3155910 - 3155910

*Director Finance holds the position of CFO also VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES There is no penalty / punishment / compounding of offence(s) on company, on directors, on other officers in default under Companies Act, 2013.

18 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED ANNEXURE - C TO THE DIRECTORS’ REPORT REPORT ON CORPORATE GOVERNANCE 1. COMPANY's PHILOSOPHY ON CORPORATE GOVERNANCE: BHAVINI's business philosophy upholds the highest standard of Corporate Governance in its operations. The management of the Company believes that strong and sound Corporate Governance is an important instrument for the protection of stakeholders and would enable to face the challenges of growth effectively and successfully. 2. BOARD OF DIRECTORS: Presently Board comprises Chairman & Managing Director, Director (Technical), Director (Finance), Director (Operations), Director (Constructions), one Independent Director and six Part-time Official Directors. All Directors are professionals and have wide experience in their respective fields. A brief resume of the present Directors are available at the Company's website.

Five Meetings of Board of Directors have been held during the year 2017-18 on 15th June 2017, 11th August 2017, 25th September 2017, 22nd December 2017 and 16th March 2018. A table showing the composition of the Board and the attendance of the members of the Board at Board Meetings and Annual General Meeting held during the year is given below:-

Director Attendance Sl. Meetings at the last Name Identification No. of other

No Attended AGM Directorship Number (25 /9/20 17)

1 Dr. Kallol Roy, CMD 07478461 5 Yes None 2 Shri K.N. Vyas 07477510 1 No 1 3 Dr. Arun Kumar Bhaduri 07572679 4 Yes 1 4 Shri Ramendra Gupta 00306663 4 Yes 4 5 Shri M.A. Inbarasu 07884669 3 No 3

6 Shri A.R. Sule (w.e.f. 12.06.2018) 08126277 NA NA 1

Shri Rameshwar Prasad Gupta 7 03388822 2 NA 2 (w.e.f. 20.10.2017) 8 Shri Aniruddha Kumar 07325440 3 No 2

9 Shri K.A. David, Director (Oper ations) 06921604 2 No None (tenure upto 30.11.2017) Shri K. Rajagopalan, 10 Director (Constructions) (tenure 07101820 4 Yes None upto 31.12.2017) Shri V. Rajan Babu 11 07102241 5 Yes None Director (Technical) 12 Shri V. Murugaiyan, Director (Finance) 07845543 4 Yes None

Shri A. Jyothish Kumar , Director 13 08128469 NA NA None (Operations) (w .e.f. 5.7.2018) Shri D.M. Jagadeesh, 14 Director (Constructions) 08205465 NA NA None (w.e.f. 5.9.2018)

19 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

· Directors under Sl. No. 5 & 6 are Part-Time This Committee met once during the financial year on Government Directors; under Sl. No. 2, 3, 7 & 8 are 15th June 2017. Presently this committee comprises of:- Part-Time Official Directors; under Sl. No. 4 is Independent Director. i) Dr. Kallol Roy, CMD Chairman · None of the Directors is a member in more than 10 ii) Shri Ramendra Gupta Member committees or acts as Chairman of more than five iii) Dr. Arun Kumar Bhaduri Member committees across all the companies in which he is a Director. Committees here mean Audit Committee & Shareholder's Grievance Committee only. Company has identified under CSR Policy to take up projects / programme under; (i) Education and skill · The Board has constituted the following Committees:- development, (ii) Human Health care and animal welfare, (iii) Rural development and (iv) Environment > Audit Committee Management. > Corporate Social Responsibility Committee > Nomination & Remuneration Committee 5)NOMINATION & REMUNERATION COMMITTEE: > Board Sub-Committee (Contracts & Purchases) Board at its 54th Meeting held on 16th March, 2015 has > Share Allotment & Transfer Committee constituted Nomination & Remuneration Committee. > Board Sub-Committee on Resource Mobilisation This Committee shall: a ) identify persons who may be appointed in senior 3)AUDIT COMMITTEE: management in accordance with the criteria laid down, Presently Audit Committee comprises of one recommend to the Board their appointment and Independent Director and three Part–time Directors. All removal; are experienced professionals and have fair financial knowledge. b ) recommend to the Board a policy, relating to the remuneration for the key managerial personnel and Five Meetings of Audit Committee have been held other employees. during the year 2017 – 18 on 15th June 2017, 11th th nd This Committee met once during the financial year on August 2017, 25 September 2017, 22 December th 2017 and 16th March 2018. A table showing the 18 September 2017. Presently this Committee composition of the Audit Committee and the attendance comprises of:- of the Members of the Audit Committee at its Meetings held during the year is given below:- Sl. No. Name 1 Shri Ramendra Gupta, Chairman

Sl. No. of Name Meetings 2 Dr. Kallol Roy No. attended

1 Shri Ramendra Gupta, Chairman 4 3 Dr. Arun Kumar Bhaduri 2 Dr. Arun Kumar Bhaduri 4 4 Shri M.A. Inbarasu 3 Shri M.A. Inbarasu 2 6)BOARD SUB-COMMITTEE (CONTRACTS & 4 Shri Aniruddha Kumar 3 PURCHASES): This Committee is entrusted with the responsibility of approving the Contracts & Purchases, which are above 4)CORPORATE SOCIAL RESPONSIBILITY the delegated powers to Chairman & Managing COMMITTEE: Director but upto the limit of `100 Crores.

th th Board at its 46 Meeting held on 9 December, 2013 Four Meetings of Board Sub-Committee (Contracts & has constituted Corporate Social Responsibility Purchases) have been held during the year 2017–18 Committee. on 11th August 2017, 18th September 2017,

20 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

25th September 2017 and 22nd December 2017. A 10) DISCLOSURES: table showing the composition of the Committee and the attendance of the Members of the Committee at its The Company has not entered into any materially Meetings held during the year is given below:- significant transactions, during the year 2017-18 with Promoters, Directors, Senior Management personnel Sl. No. of Meetings etc., other than the transactions, if any entered into, in Name No . attended the normal course of Company's business. 1 Dr. Kallol Roy , Chairman 4 Report on Statutory Compliances are placed before the 2 Shri Ramendra Gupta 4 Board annually. No penalties, strictures imposed on the 3 Shri M.A. Inbarasu 3 Company by any statutory authority. 4 Shri K. Rajagopalan (till 31.12.2017) 4 It is confirmed that no Presidential directives have been 5 Shri V. Murugaiyan 4 issued by the Central Government during the financial 7) SHARE ALLOTMENT AND TRANSFER year. COMMITTEE: It is confirmed that items of expenditure debited in This Committee considers the allotment and transfer of books of accounts are for the purpose of the business shares and issuance of share certificates and other only except amount spent on corporate social matters incidental thereto. Presently this committee responsibility activities. comprises of:- It is confirmed that no personnel has been denied access i) Dr. Kallol Roy, CMD Chairman to the Audit Committee. ii) Shri Ramendra Gupta Member iii) Dr. Arun Kumar Bhaduri Member 11) MEANS OF COMMUNICATION: The Company's website (www.bhavini.nic.in) provides 8) BOARD SUB-COMMITTEE ON RESOURCE information on the Company and its performance. MOBILIZATION: Board at its 27th Meeting held on 8th May, 2009 has Matters of interest to employees are circulated constituted Board Sub-Committee on Resource internally through intranet in the form of Notices, Office Orders and Circulars. Mobilization to oversee and decide the borrowings on its behalf. Presently this committee comprises of:- Company's first project is under construction. Entire shareholding of the Company is held by President of i) Dr. Kallol Roy, CMD Chairman India and Nuclear Power Corporation of India Limited. ii) Shri Ramendra Gupta Member Hence, publication of financial results is not applicable. iii) Shri M.A. Inbarasu Member iv) Shri V. Murugaiyan Member 12) RISK MANAGEMENT – FRAUD PREVENTION POLICY (WHISTLE BLOWER POLICY): 9) TRAINING OF DIRECTORS: Guidelines on Corporate Governance (para 7.3.2) issued by Department of Public Enterprises (DPE) The Board of Directors consists of CMD, Functional requires that the Board should implement policies and Directors and part-time Directors from DAE, BARC, procedures which should include:- IGCAR, NITI Aayog and Ministry of Power. The Directors possess requisite knowledge relating to the (a) Staff responsibilities in relation to fraud prevention functioning of the Company, their Rights, Duties and and identification Liabilities. Site visits are organized regularly for the (b) Responsibility of fraud investigation once a fraud Directors to update the developments. has been identified

A training programme on Corporate Governance was (c) Process of reporting of fraud related matters to held on 12th February 2018 to newly inducted Directors. management

21 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

(d)Reporting and recording process to be followed to 13) CODE OF CONDUCT: record allegations of fraud The Board of Directors has laid down a Code of (e)Requirements of training to be conducted on fraud Conduct for the Board Members and Senior prevention and identification. Management personnel of the Company. The said Code has been posted in the website of the Company. Accordingly BHAVINI has framed Risk Management – Fraud Prevention Policy which is in force w.e.f. 15th All the Members of the Board and Senior Management January, 2008. The said policy has been posted in the Personnel, have affirmed compliance of the Code of st website of the Company. Conduct for the financial year ended 31 March, 2018.

ANNEXURE - D TO THE DIRECTORS’ REPORT Form No. MR-3 SECRETARIAL AUDIT REPORT (Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014) For The Financial Year Ended 31.03.2018

To We have examined the books, papers, minute books, The Members, forms and returns filed and other records maintained Bharathiya Nabhikiya Vidyut Nigam Limited by the company for the financial year ended on 31st March, 2018 in accordance with the provisions of: We have conducted the secretarial audit of the compliance of applicable statutory provisions and the (i) The Companies Act, 2013 (the Act) and the rules adherence to good corporate practices by Bharathiya made thereunder; Nabhikiya Vidyut Nigam Limited (hereinafter called the company). Secretarial Audit was conducted in a manner (ii) Other Acts as Specified in Annexure A to this report that provided us a reasonable basis for evaluating the We have also examined compliance with the applicable corporate conducts/statutory compliances and clauses of the Secretarial Standards - I, II, III issued by expressing our opinion thereon. the Institute of Company Secretaries of India.

Based on our verification of the books, papers, minute During the period under review the Company has books, forms and returns filed and other records complied with the provision of the Act, Rules, maintained by the company and also the information Regulations, Guidelines, etc, mentioned above subject to the following observations: provided by the Company, its officers, agents and authorized representatives during the conduct of 1. The Company is yet to comply with provisions of secretarial audit, we hereby report that in our opinion, Section 149 of the Companies Act, 2013, with regard to the company has, during the audit period covering the the appointment of adequate number of independent financial year ended on 31st March 2018 complied with directors. As per Article 43 of the Company’s Articles of the statutory provisions listed hereunder and also that association, the President of India shall appoint Members of the Board. We have been informed that a the Company has proper Board-processes and proposal to appoint adequate number of independent compliance-mechanism in place to the extant in the directors is under consideration by the Government of manner and subject to the reporting made hereinafter. India.

22 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

2. The Company has constituted an Audit Committee Adequate notice is given to all directors to schedule the and a Nomination and Remuneration Committee. The Board Meetings, agenda and detailed notes on agenda Company is yet to induct adequate number of were sent at least seven days in advance, and a system independent directors in these Committees as required exists for seeking and obtaining further information and under sections 177(2) and 178(1) of the Companies Act, clarifications on the agenda items before the meeting and for meaningful participation at the meeting. 2013 respectively.

We further report that there are adequate systems and 3. The Company is yet to appoint a Woman Director in processes in the company commensurate with the size its Board. and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and With regard to the compliance of the applicable Acts guidelines. and Regulations as specified in Annexure A, we have relied upon the certificates received by the company We further report that during the audit period the from their Compliance Officers and recorded in the company has not made: Board Meeting held on 13.07.2018. 1. (i) Public issue of shares / debentures / sweat equity, etc. We further report that The Board of Directors of the (ii) Redemption / buy-back of securities. Company is duly constituted with proper balance of Executive Directors and Non-Executive Directors. 2. Major decisions required to be taken by the member in However adequate number of Independent directors pursuance to section 180 of the Companies Act, 2013. and Woman Director is to be appointed in the Board. The changes in the composition of the Board of Directors 3. Merger / amalgamation / reconstruction, etc. that took place during the period under review were carried out in compliance with the provisions of the Act. 4. Foreign technical collaborations.

For G P V & ASSOCIATES Company Secretaries

Sd/- (G.P.VENKATESWARAN) Partner Place : Chennai FCS No : 1208; C P No: 1746 Date : 18.07.2018

23 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

Annexure A to the Secretarial Audit Report of Bharatiya Nabhikiya Vidyut Nigam Limited for the year ended 31.03.2018

List of ther Acts, Rules and Regulations applicable to the company

1. Atomic Energy Act,1962 2. The Civil Liability for Nuclear Damage Act, 2010 3. Electricity Act, 2003 4. Environment Protection Act, 1986 5. Air ( Prevention & Control of Pollution ) Act, 1981 6. Water (Prevention & Control of Pollution ) Act, 1974 7. Indian Boilers Act, 1923 8. Income Tax Act, 1961 and other Tax laws. 9.Factories Act, 1948 read with Atomic Energy (Factories) Rules, 1996 10. Other Industrial & Labour Laws like, Minimum Wages Act, 1948, Payment of Wages Act, 1936, Payment of Bonus Act, 1965, Employees Provident Fund and Miscellaneous Provisions Act, 1952, Payment of Gratuity Act, 1972, Workmen’s Compensation Act, 1923, Industrial Disputes Act, 1947.

For G P V & ASSOCIATES Company Secretaries

Sd/- (G.P.VENKATESWARAN) Partner FCS No : 1208; C P No: 1746 Place : Chennai Date : 18.07.2018

24 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED INDEPENDENT AUDITORS' REPORT To the Members of M/s BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED Report on the Ind AS Financial Statements of the Act. Those Standards require that we comply with We have audited the accompanying Ind AS financial ethical requirements and plan and perform the audit to statements of M/s BHARATIYA NABHIKIYA VIDYUT obtain reasonable assurance about whether the Ind AS NIGAM LIMITED(“the Company”), which comprise the financial statements are free from material Balance Sheet as at March 31, 2018, the Statement of misstatement. Profit and Loss, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended An audit involves performing procedures to obtain audit and a summary of significant accounting policies and evidence about the amounts and disclosures in the Ind other explanatory information. AS financial statements. The procedures selected depend on the auditors' judgment, including the Management's Responsibility for the Ind assessment of the risks of material misstatement of the AS Financial Statements Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor The Company's Board of Directors is responsible for the considers internal financial control relevant to the matters stated in Section 134(5) of the Companies Act, Company's preparation of the Ind AS financial 2013 (“the Act”) with respect to the preparation of statements that give a true and fair view in order to these Ind AS financial statements that give a true and design audit procedures that are appropriate in the fair view of the financial position, financial performance circumstances. An audit also includes evaluating the including cash flow and changes in equity of the appropriateness of accounting policies used and the Company in accordance with the accounting principles reasonableness of the accounting estimates made by generally accepted in India, including the Indian the Company's Board of Directors, as well as evaluating Accounting Standards (Ind AS) specified under Section the overall presentation of the Ind AS financial 133 of the Act, read with relevant rules issued statements. thereunder. We believe that the audit evidence we have obtained is This responsibility also includes maintenance of sufficient and appropriate to provide a basis for our adequate accounting records in accordance with the audit opinion on the Ind AS financial statements. provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds Opinion and other irregularities; selection and application of In our opinion and to the best of our information and appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, according to the explanations given to us, the aforesaid implementation and maintenance of adequate internal Ind AS financial statements give the information financial controls, and that were operating effectively required by the Act in the manner so required and give for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and a true and fair view in conformity with the accounting presentation of the Ind AS financial statements that give principles generally accepted in India, of the state of a true and fair view and are free from material affairs of the Company as at 31st March, 2018, its loss, misstatement, whether due to fraud or error. its cash flows and changes in equity for the year ended Auditors' Responsibility on that date. Our responsibility is to express an opinion on these Ind Report on Other Legal and Regulatory AS financial statements based on our audit. Requirements We have taken into account the provisions of the Act, the (1) As required by the Companies (Auditors' Report) accounting and auditing standards and matters which Order, 2016 (“the Order”) issued by the Central are required to be included in the audit report under the Government of India in terms of sub-section (11) of provisions of the Act and the Rules made thereunder. Section 143 of the Act, we give in “Annexure 1”, a We conducted our audit in accordance with the statement on the matters specified in paragraphs 3 Standards on Auditing specified under Section 143(10) and 4 of the Order, to the extent applicable.

25 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

(2)As required by Section 143(5) of the Act,with regard f . With respect to the adequacy of the internal to the directions issued by the Comptroller and Audit financial controls over financial reporting of the General of India, we report that: Company and the operating effectiveness of such a. The land at Kalpakkam for plant site & township controls, we give our separate Report in belongs to DAE/IGCAR. The development “Annexure 2”. charges of the land have been shown under “Land” under Tangible Assets. Refer note 22 to the g. Ind AS financial statement. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of b. There are no cases of waiver/write off of the Companies (Audit and Auditors) Rules, 2014, debts/loans/interest. as amended, in our opinion and to the best of our information and according to the explanations c. Proper records have been maintained with given to us: respect to inventories lying with the third parties. Further, there is no asset which has been received as gift from Govt. or other authorities. (i) The Company has disclosed the impact of pending litigations on its financial position in its (3)(1)As required by Section 143(3) of the Act, we Ind AS financial statements – Refer Note 21- I on report that: Contingent Liabilities to the Ind AS financial statements; a. We have sought and obtained all the information and explanations which to the best of our (ii) The Company did not have any long-term knowledge and belief were necessary for the contracts including derivative contracts for which purposes of our audit. there were any material foreseeable losses;

b. In our opinion, proper books of account as (iii) There were no amounts which were required to required by law have been kept by the Company be transferred to the Investor Education and so far as it appears from our examination of those Protection Fund by the Company. books. (iv) Reporting on disclosures relating to Specified c . The Balance Sheet, the Statement of Profit and Bank Notes is not applicable for the year ended Loss, the Cash Flow Statement and the Statement st 31 March 2018. of Changes in Equity dealt with by this Report are in agreement with the books of accounts. For M/s. Ramesh and Ramachandran d. In our opinion, the aforesaid Ind AS financial Chartered Accountants statements comply with the Indian Accounting ICAI Firm Registration No. 02981S Standards specified under Section 133 of the Act read with relevant rules issued thereunder. Sd/- (Y.Sridhar) e. Consequent to the issue of Notification No.GSR Partner 463(E) dt. 05.06.2015, provisions of Section Membership No.028149 164(2) of the act with respect to disqualifications Place: Kalpakkam th of directors, is not applicable. Date: 13 July 2018

26 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED ANNEXURE 1 TO THE INDEPENDENT AUDITORS' REPORT

[Referred to in paragraph 1 under 'Report on Other accepted any deposits from the public within the Legal and Regulatory Requirements' in the Independent provisions of Sections 73 to 76 of the Act and the Auditors' Report of even date to the members of rules framed thereunder. Accordingly, reporting M/s BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED under clause 3(v) of the Order is not applicable to on the Ind AS financial statements for the year ended the Company. 31st March 2018] (vi) The Central Government has prescribed the (i) maintenance of cost records under sub section (1) of a) The Company has maintained proper records Section 148 of the Act and the rules framed showing full particulars, including quantitative details and situation of fixed assets. thereunder. However, in our opinion and explanations given to us, the Company is yet to b) During the year, the fixed assets of the Company commence its commercial activities. Therefore, have been physically verified by the management maintenance of cost records is not required as per and as informed, no material discrepancies were sub section (1) of Section 148 of the Act and the noticed on such verification. In our opinion, the rules framed thereunder. Hence, paragraph 3(vi) frequency of verification is reasonable having of the Order is not applicable for the year under regard to the size of the Company and the nature audit. of its assets. (vii) c) The land at Kalpakkam for plant site and township (a) The Company is regular in depositing with . belongs to DAE/IGCAR. The development charges appropriate authorities, undisputed statutory dues of the land been shown under “Land” under including provident fund, income tax, sales tax, Tangible Assets. service tax, value added tax, goods and service . tax, customs duty, excise duty, cess and any other (ii) The inventory has been physically verified by the material statutory dues applicable to it. management during the year. In our opinion, the frequency of verification is reasonable. As informed, no material discrepancies were noticed (b) According to the information and explanations on physical verification carried out during the year. given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, (iii) As informed, the Company has not granted any service tax, value added tax, goods and service loans, secured or unsecured to companies, tax, customs duty, excise duty, cess and any other firms,Limited Liability Partnerships or other parties covered in the register maintained under Section material statutory dues applicable to it, were 189 of the Act. Accordingly, paragraph 3(iii)(a), outstanding, at the year end, for a period of more 3(iii)(b) and 3(iii)(c) of the Order are not than six months from the date they became applicable to the Company. payable. . (iv) Based on the information and explanation given to us the company has not granted loans, investments, (c) According to the information and explanation guarantees and securities. Therefore, the question given to us, as per our verification of records of the of complying with the Section 185 and Section 186 company, the disputed tax which are not deposited of the Act does not arise. Accordingly, reporting with the appropriate authorities as at under clause 3(iv) of the Order is not applicable to st the Company. 31 March ,2018 are given below :

(v) In our opinion and according to the information and explanations given to us, the Company has not

27 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

Total Amount Period to paid under Name of the Nature of Total Demand which the Forum where the protest/ Statue the Dues (in Rs) dispute is pending adjustment amount relates (in Rs.)

The Income Income 15,21,770/ - 3,04,354/ - AY 2010-11 Commissioner of Tax Act, 1961 Tax Income NIL NIL AY 2011-12 Tax(Appeals) -1, Chennai 16,03,240/ - 3,20,648/ - AY 2012-13

(viii ) According to the information and explanations (xii) In our opinion, the Company is not a Nidhi Company. given to us, the Company has not defaulted in Therefore, paragraph 3(xii) of the Order is not applicable to the Company. repayment of loans or borrowings to financial institution(s), bank(s),government(s) or dues to (xiii) According to the information and explanation debenture holder(s). given to us, all transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of Act, where applicable and the details (ix) According to the information and explanations have been disclosed in the Ind AS Financial Statements given to us, the Company has not raised money by the etc., as required by the applicable accounting way of public issue offer. The Company had obtained standards. GOI loan and the same was used for the purpose for (xiv) The Company has not made any preferential which it was granted. allotment or private placement of shares or fully or partly convertible debentures during the year under (x) During the course of our examination of the books review. Therefore, paragraph 3(xiv) of the Order is not applicable to the Company. and records of the Company, carried out in accordance with the generally accepted auditing practices in India, (xv) The Company has not entered into any non-cash and according to the information and explanations transactions with directors or persons connected with them during the year. given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company by (xvi) Based on the information and explanation given to its officers or employees, noticed or reported during the us the Company is not required to be registered under year, nor have we been informed of any such instance Section 45-IA of the Reserve Bank of India Act, 1934. by the management. For M/s. Ramesh and Ramachandran Chartered Accountants (xi) Consequent to the issue of Notification ICAI Firm Registration No. 02981S No.GSR463(E) dated 05.06.2015; managerial remuneration u/s 197 read with Schedule V to the Act is Sd/- not applicable to the Company. (Y.Sridhar) Partner Membership No.028149

Place: Kalpakkam Date: 13th July 2018

28 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

ANNEXURE 2 TO THE INDEPENDENT AUDITORS' REPORT

[Referred to in paragraph 3 under 'Report on Other “Guidance Note”) and the Standards on Auditing Legal and Regulatory Requirements' in the Independent specified under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, Auditors' Report of even date to the members of both issued by the ICAI. Those Standards and the M/s BHARATIYA NABHIKIYA VIDYUT NIGAM Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain LIMITED on the Ind AS financial statements for the year reasonable assurance about whether adequate internal ended 31st March 2018. financial controls over financial reporting was established and maintained and if such controls Report on the Internal Financial Controls over operated effectively in all material respects. Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Our audit involves performing procedures to obtain Act”) audit evidence about the adequacy of the internal financial controls system over financial reporting and We have audited the internal financial controls over their operating effectiveness. financial reporting of M/s BHARATIYA NABHIKIYA Our audit of internal financial controls over financial VIDYUT NIGAM LIMITED (“the Company”) as of March reporting included obtaining an understanding of 31, 2018 in conjunction with our audit of the Ind AS internal financial controls over financial reporting, financial statements of the Company for the year ended assessing the risk that a material weakness exists, and testing and evaluating the design and operating on that date. effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's Management's Responsibility for Internal judgement, including the assessment of the risks of Financial Controls material misstatement of the Ind AS financial statements, whether due to fraud or error. The Company's management is responsible for establishing and maintaining internal financial controls We believe that the audit evidence we have obtained is based on the internal control over financial reporting sufficient and appropriate to provide a basis for our criteria established by the Company considering the audit opinion on the Company's internal financial essential components of internal control stated in the controls system over financial reporting. Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Meaning of Internal Financial Controls Over Chartered Accountants of India (“ICAI”). These Financial Reporting responsibilities include the design, implementation and maintenance of adequate internal financial controls A company's internal financial control over financial that were operating effectively for ensuring the orderly reporting is a process designed to provide reasonable and efficient conduct of its business, including assurance regarding the reliability of financial adherence to company's policies, the safeguarding of reporting and the preparation of Ind AS financial its assets, the prevention and detection of frauds and statements for external purposes in accordance with errors, the accuracy and completeness of the accounting generally accepted accounting principles. A company's records, and the timely preparation of reliable financial internal financial control over financial reporting information, as required under the Companies Act, includes those policies and procedures that (1) pertain 2013. to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and Auditors' Responsibility dispositions of the assets of the company; (2) provide Our responsibility is to express an opinion on the reasonable assurance that transactions are recorded as Company's internal financial controls over financial necessary to permit preparation of Ind AS financial reporting based on our audit. We conducted our audit statements in accordance with generally accepted in accordance with the Guidance Note on Audit of accounting principles, and that receipts and Internal Financial Controls Over Financial Reporting (the expenditures of the company are being made

29 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED only in accordance with authorisations of management Opinion and directors of the company; and (3) provide reasonable assurance regarding prevention or timely In our opinion, the Company has, in all material respects, detection of unauthorised acquisition, use, or disposition an adequate internal financial controls system over of the company's assets that could have a material financial reporting and such internal financial controls effect on the financial statements. over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company Inherent Limitations of Internal Financial Controls Over Financial Reporting considering the essential components of internal control stated in the Guidance Note on Audit of Internal Because of the inherent limitations of internal financial Financial Controls Over Financial Reporting issued by controls over financial reporting, including the the ICAI. possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are For M/s. Ramesh and Ramachandran subject to the risk that the internal financial control over Chartered Accountants ICAI Firm Registration No. 02981S financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may Sd/- deteriorate. (Y.Sridhar) Partner Membership No.028149 Place: Kalpakkam Date: 13th July 2018

30 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED Balance Sheet as at 31st March 2018 (Amount in `)

Figures as at the end of the Figures as at the end of the Particulars Note No. current reporting period previous reporting period (31.03.2018) (31.03.2017)

ASSETS (1)Non Current assets (a) Property, Plant and Equipment 1 2,044,187,523 2,151,559,822 (b) Capital work-in-progress 2 56,684,233,205 53,418,853,541 (c) Other Intangible assets 3 2,810,419 3,874,650 (d) Financial Assets: (i) Loans 4.1 12,180,714 14,685,311 (ii) Other Financial Assets 4.2 32,076 34,364 (e) Other non-current assets 5 684,886,065 668,271,066 (2)Current assets (a) Inventories 6 9,664,775 10,528,718 (b) Financial Assets: (i) Cash and cash equivalents 7.1 82,065,531 117,312,557 (ii) Bank balances other than (i) above 7.2 1,990,000,000 4,010,000,000 (iii) Loans 7.3 5,522,298 6,059,087 (iv) Others 7.4 35,562,005 123,186,755 (c) Current Tax Assets (Net) 8 5,077,113 6,992,210 (d) Other current assets 9 27,044,413 40,384,985 Total Assets 61,583,266,137 60,571,743,066

EQUITY AND LIABILITIES Equity (a) Equity Share capital 10 45,882,000,000 45,882,000,000 (b) Other Equity 11 678,946,385 683,258,320 LIABILITIES (1)Non-current liabilities (a) Financial Liabilities (i) Borrowings 12 11,069,357,839 10,649,836,283 (ii) Other financial liabilities 13 1,396,493 1,879,931 (b) Provisions 14 175,504,064 204,148,920 (c) Other non-current liabilities 15 1,994,361,009 1,264,120,260 (2)Current liabilities (a) Financial Liabilities (i) Other financial liabilities 16 1,765,047,069 1,869,936,851 (b) Provisions 17 16,653,278 16,562,501 Total Equity and Liabilities 61,583,266,137 60,571,743,066 See accompanying notes (1 to 44) to the financial statements Refer our report of even date For RAMESH & RAMACHANDRAN, For and on behalf of Chartered Accountants BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED (ICAI Regn. No: 02981S ) Sd/- Sd/- Sd/- Sd/- (CA.Y.Sridhar) (CS.V.Viswanathan) (V.Murugaiyan) (Dr. Kallol Roy) Partner Company Secretary Director(Finance) & Chairman & Membership No: 028149 Chief Financial Officer Managing Director PLACE : Kalpakkam DATE : 13th July 2018

31 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

Statement of Profit and Loss for the year ended 31st March 2018

(Amount in `)

Figures for the Figures for the Note Particulars current reporting previous reporting No. period (2017-18) period (2016-17)

INCOME I Revenue from operations (Project under construction) Nil Nil II Other income 18 1,944,004 4,385,752

III Total Revenue (I+II) 1,944,004 4,385,752

IV EXPENSES Other Expenses 19 5,694,939 2,991,976 Total expenses 5,694,939 2,991,976 V Profit/(Loss) before tax (3,750,935) 1,393,776 VI Tax expense 1) Current tax 561,000 1,518,000 2) Deferred tax Nil Nil VII Profit / (Loss) for the period (V-VI) (4,311,935) (124,224) VIII Other Comprehensive Income / (Expense) (OCI) Nil Nil Total Comprehensive Income for the period (VII+VIII) IX (comprising profit / (loss) and other comprehensive Income for (4,311,935) (124,224) the period)

X Earning Per Share 1) Basic (0.094) (0.003) 2) Diluted (0.094) (0.003)

See accompanying notes (1 to 44) to the financial statements Refer our report of even date For RAMESH & RAMACHANDRAN, For and on behalf of Chartered Accountants BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED (ICAI Regn. No: 02981S ) Sd/- Sd/- Sd/- Sd/- (CA.Y.Sridhar) (CS.V.Viswanathan) (V.Murugaiyan) (Dr. Kallol Roy) Partner Company Secretary Director(Finance) & Chairman & Membership No: 028149 Chief Financial Officer Managing Director PLACE : Kalpakkam DATE : 13th July 2018

32 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED Cash Flow statement for the year ended 31st March 2018 (Amount in `)

Figures for the current reporting period Figures for the previous reporting period PARTICULARS 2017-18 2016-17

A- OPERATING ACTIVITIES

Profit/(Loss) as per Profit & Loss Statement (Interest from (4,311,935) (124,224) loans / other income) * Add-Provision for Income tax 561,000 (3,750,935) 1,518,000 1,393,776

NET CASH GENERATED / UTILISED IN OPERATION (3,750,935) 1,393,776 B-INVESTING ACTIVITIES Capital work-in-progress (3,265,379,664) (3,012,676,521) Add- Depreciation / Amortisation 178,169,687 202,019,085 Add- Provision for Income tax in EDC (note 2A) 61,483,000 126,316,000 Add- loss on transfer of Asset 32,990 - Add- Short and Long term provisions (28,554,079) 63,562,773 (3,054,248,066) (2,620,778,663) Purchase /construction of PPE & Intangible Assets (69,766,147) (334,426,892)

(Increase) /Decrease in Non Current Assets (14,108,114) 181,769,493 Increase /(Decrease) in Non Current Liabilities 729,757,311 754,066,002 Increase /(Decrease) in Borrowings -GOI Loan 419,521,556 391,231,089

Adjustment for Increase /Decrease in Working capital :

1.(Increase) /Decrease in Inventories 863,943 743,036 2.(Increase) /Decrease in loans 536,789 432,068 3.(Increase) /Decrease in Other Financial assets 87,624,750 (39,904,060) 4.(Increase) /Decrease in Other current assets 13,340,572 (4,637,095) 5.(Increase) /Decrease in Other bank deposits 2,020,000,000 1,800,000,000 6.Increase /(Decrease) in Current liabilites (104,889,782) 2,017,476,272 39,697,097 1,796,331,046 Payment of Income tax (61,276,661) (128,652,731) Income tax Refund 1,147,758 12,421,678 NET CASH USED IN INVESTING ACTIVITIES (31,496,091) 51,961,022 C- FINANCING ACTIVITIES Share Capital - 40,000,000

NET CASH FROM FINANCING ACTIVITIES - 40,000,000 NET INCREASE /(DECREASE) IN CASH AND CASH (35,247,026) 93,354,798 EQUIVALENTS (A+B+C) Cash and cash equivalents at the beginning of the year 117,312,557 23,957,759 (Note 7.1) Cash and cash equivalents at the end of the year (Note 82,065,531 117,312,557 7.1) * Profit/(Loss) is net of Expenditure on Corporate Social Responsibility (CSR) activities - ₹ 56,94,939/- (Previous reporting period: ₹29,91,976/-) See accompanying notes (1 to 44) to the financial statements Refer our report of even date For RAMESH & RAMACHANDRAN, For and on behalf of Chartered Accountants BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED (ICAI Regn. No: 02981S ) Sd/- Sd/- Sd/- Sd/- (CA.Y.Sridhar) (CS.V.Viswanathan) (V.Murugaiyan) (Dr. Kallol Roy) Partner Company Secretary Director(Finance) & Chairman & Membership No: 028149 Chief Financial Officer Managing Director PLACE : Kalpakkam DATE : 13th July 2018

33 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

Statement of Changes in Equity for the period ended 31st March 2018 (Amount in `) A. Equity Share Capital Balance at the beginning of Changes in equity Balance at the end of the the reporting period 01.04.2017 share capital during the year reporting period 31.03.2018

45,882,000,000 - 45,882,000,000

B. Other Equity

Reserves and Surplus Items of Other Comprehensive income/ (Loss)

Share Exchange differences on Total Particulars application Remeasurement of translating the financial money Retained Earnings Defined benefit plans statements of a foreign pending (net) operation allotment

Balance as at 1st April 683,382,544 - - 683,382,544 2016 -

Profit/ (Loss) for the (124,224) - - (124,224) year 2016-17 - Closing balance as at 683,258,320 - - 683,258,320 31 March 2017 - Profit / (Loss) for the (4,311,935) - - (4,311,935) year 2017-18 -

Closing balance as at - 678,946,385 - - 678,946,385 31 March 2018

See accompanying notes (1 to 44) to the financial statements Refer our report of even date

For RAMESH & RAMACHANDRAN, For and on behalf of Chartered Accountants BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED (ICAI Regn. No: 02981S ) Sd/- Sd/- Sd/- Sd/- (CA.Y.Sridhar) (CS.V.Viswanathan) (V.Murugaiyan) (Dr. Kallol Roy) Partner Company Secretary Director(Finance) & Chairman & Membership No: 028149 Chief Financial Officer Managing Director

PLACE : Kalpakkam DATE : 13th July 2018

34 3 5 BHARA

st

NOTES TO FINANCIAL STATEMENTS AS AT 31 MARCH 2018 TIY

1. PROPERTY, PLANT AND EQUIPMENT (Amount in `) A NABHIKIY

Figures as at the end Figurof es as at the end of the current reportingthe previous reporting Furniture and PARTICULARS Land Building Plant and equipment Office equipment Vehicles Others period 31.03.2018 period 31.03.2017 fixtures A VID

Value at the beginning 4,317,317 2,160,071,226 1,106,910,094 118,645,718 69,475,204 3,308,749 7,621,684 3,470,349,992 3,138,047,490 Addition during the year - 27,197,239 34,587,509 5,195,528 2,757,039 - - 69,737,315 338,485,026 OCK

Deduction /Adjustment YUT NIGAMLIMITED - (721,158) (200,488) (38,300) - - - (959,946) (6,182,524) during the year

OSS BL

GR Value at the end 4,317,317 2,186,547,307 1,141,297,115 123,802,946 72,232,243 3,308,749 7,621,684 3,539,127,361 3,470,349,992 Value at the beginning - 586,793,928 575,762,706 104,452,127 45,166,644 2,144,402 4,470,363 1,318,790,170 1,118,351,517

Addition during the year 86,840,192 73,468,367 7,990,417 5,773,619 413,594 820,832 175,307,021 198,075,328 TION Deduction /Adjustment (74,456) 443,365 (20,857) 494,595 - - 842,647 2,363,325 during the year DEPRECIA Value at the end - 673,559,664 649,674,438 112,421,687 51,434,858 2,557,996 5,291,195 1,494,939,838 1,318,790,170 Figures as at the end of the previous reporting 4,317,317 1,573,277,298 531,147,388 14,193,591 24,308,560 1,164,347 3,151,321 2,151,559,822 2,019,695,973 period OCK Figures as at the end of

NET BL current reporting period 4,317,317 1,512,987,643 491,622,677 11,381,259 20,797,385 750,753 2,330,489 2,044,187,523 2,151,559,822

Net block includes assets pertaining to the pre-project activities for FBR 1 and 2 under₹ 22,128,377 "Building "(Gr - oss value: ₹ 44,373,515, Depreciation: ₹ 22,245,138) (Previous year₹ 31,152,457 (Gross value: ₹ 44,373,515, Depreciation: ₹ 13,221,058) BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018

Figures as at the end of Figures as at the end of Particulars the current reporting the previous reporting period (31.03.2018) period (31.03.2017) 2. CAPITAL WORK-IN-PROGRESS a Capital work-in-progress -PFBR 41,015,399,535 40,420,604,077 b Capital work-in-progress - PPA for FBR (1&2) 385,414,317 25,886,650 c Capital goods in stock 2,177,282,359 2,026,450,423 d Materials pending inspection and acceptance 11,615,726 176,239,168 e Materials lying with contractors / suppliers 916,260,596 1,003,346,077 Expenditure During Construction pending allocation (EDC) as per 12,033,787,375 9,632,179,839 f Note 2A (PFBR) Expenditure during construction pending allocation (EDC) as per 144,473,297 134,147,307 g Note 2A - PPA for FBR (1&2) Total 56,684,233,205 53,418,853,541 2A. STATEMENT OF EXPENDITURE DURING CONSTRUCTION PENDING ALLOCATION (EDC)

A) EXPENDITURE - PFBR a Stores and spares consumed 3,458,912 2,407,598 b Repairs and maintenance i) Building 37,956,509 34,356,127 ii) Plant and machinery 33,410,273 34,899,633 iii) Others 143,972,216 98,602,739 c Rent 3,024,337 1,011,747 d Salaries, Wages, Bonus and allowances 487,666,879 501,661,778 e Terminal and other employee benefits 24,527,103 78,036,960 f Staff welfare expenses 67,869,565 64,874,850 g Contribution to Provident and other funds 44,460,725 41,121,859 h Rates , Taxes and Insurance 73,446,853 70,319,805 i Travelling and conveyance expenses 7,525,289 9,106,628 j Payment to Statutory auditors i) Fees (including tax) 241,900 230,750 ii) Reimbursement of expenses - 3,195 k Director's sitting fee 153,400 149,300 l Legal expenses 652,290 175,950 m Printing and stationery 1,256,059 837,354 n Electricity and water charges 170,364,344 83,247,030 o Advertisement expenses 3,584,638 4,239,516 p Consultancy charges 2,131,653 9,893,078 q Security expenses 89,506,850 81,038,297 r Postage expenses 3,460,159 3,526,752 s Vehicle running expenses 28,408,244 27,777,084 t Computer related expenses 3,544,343 3,875,116 u Office expenses 1,250,200 2,481,336 v Safety related expenses 1,103,176 1,291,612 w Testing charges - 214,802 x Other expenses 941,891 575,147 y Fees and subscription 715,086 460,307 z GOI loan interest - Govt Grant 730,596,149 758,259,912

36 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018

Figures as at the end Figures as at the end of Particulars of current reporting the previous reporting period (31.03.2018) period (31.03.2017)

aa GOI loan interest - deferred interest 419,252,556 391,231,089 ab (Profit)/Loss on sale /exchange of tangible asset 32,990 - ac Depreciation / Amortisation for the year 169,145,607 193,415,893 TOTAL EXPENDITURE FOR THE YEAR-PFBR 2,553,660,196 2,499,323,244 Less- Deferred income (271,920) (428,839) Less- Bank Interest (TDS `2,08,25,173 ) (213,263,740) (364,794,343) Add- Provision for Income tax on Bank interest 61,483,000 126,316,000 TOTAL FOR THE YEAR-PFBR 2,401,607,536 2,260,416,062 Add- Balance at the beginning of the year (PFBR) 9,632,179,839 7,371,763,777 Total for PFBR (A) 12,033,787,375 9,632,179,839 B EXPENDITURE - PPA for FBR 1 and 2 ba Pre- project activities (PPA) for FBR 1 and 2 1,301,910 6,676,542 bb Depreciation for the year for PPA of FBR 1 and 2 9,024,080 8,791,037 TOTAL FOR THE YEAR-PPA for FBR 1 and 2 10,325,990 15,467,579 Add- Balance at the beginning of the year (PPA for FBR 1 and 2) 134,147,307 118,679,728 Total for PPA for FBR 1 and 2 (B) 144,473,297 134,147,307 Total transferred to Note 2 (A+B) 12,178,260,672 9,766,327,146

3.OTHER INTANGIBLE ASSETS Figures as at the Figures as at the end end of the current of the previous COMPUTER SOFTWARE- PURCHASED reporting period reporting period 31.03.2018 31.03.2017

Value at the beginning 21,869,692 19,754,350 K C O L

B Addition during the year 950,478 2,115,342 S S

O R Deduction /Adjustment during the year - - G Value at the end 22,820,170 21,869,692 N

O Value at the beginning 17,995,042 16,423,658 I T A

S Addition during the year 1,926,270 1,571,384 I T

R Deduction /Adjustment during the year 88,439 - O

M Value at the end 20,009,751 17,995,042 A K

C Figures as at the end of the previous reporting period 3,874,650 3,330,692 O L B T E Figures as at the end of the current reporting period 2,810,419 3,874,650 N

37 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018

Figures as at the end of Figures as at the end of Particulars the current reporting the previous reporting period (31.03.2018) period (31.03.2017)

4.1 LOANS - NON CURRENT FINANCIAL ASSETS Loans to Employees Unsecured and considered good : Loans employees 12,180,714 14,685,311 Total 12,180,714 14,685,311 4.2. OTHER FINANCIAL ASSETS -NON-CURRENT Unsecured and considered good : Deposits with other Govt. agencies 32,076 34,364 Total 32,076 34,364 Note : Deposits are recorded at Transaction price 5. OTHER NON-CURRENT ASSETS Capital Advances Unsecured and considered good : - To suppliers and contractors 684,886,065 668,271,066 Total 684,886,065 668,271,066 6. INVENTORIES Stores and spares (Valued at lower of cost or net realisable value as certified by management ) 9,664,775 10,528,718 Total 9,664,775 10,528,718 7.1 CASH AND CASH EQUIVALENTS a Balance with banks in current accounts (net) 32,031,013 117,298,054 b Balance with banks in deposit accounts 50,000,000 - c Postage stamp (franking balance) 34,518 14,503 d Cash on hand - - Total ** 82,065,531 117,312,557 7.2. BANK BALANCES OTHER THAN (ii) ABOVE a Short-term bank deposits 1,990,000,000 4,010,000,000 Total ** 1,990,000,000 4,010,000,000

** Break-up of Cash and Bank balance - PFBR 2,019,830,491 3,747,128,113 - Pre-project activities for FBR 1 and 2 52,235,040 380,184,444 7.3. LOANS CURRENT FINANCIAL ASSETS a Unsecured and considered good : - To employees 5,522,298 6,059,087 Total 5,522,298 6,059,087

38 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018

Figures as at the end Figures as at the end of Particulars of current reporting the previous reporting period (31.03.2018) period (31.03.2017)

7.4. OTHERS - FINANCIAL ASSETS CURRENT a Interest accrued on deposits 33,673,572 116,751,624 b Other Receivables (unsecured considered good) 1,888,433 6,435,131 (licence fee, Electricity charges , telephone charges etc) Total 35,562,005 123,186,755 8. CURRENT TAX ASSETS (NET) a Advance Income tax and Tax deducted at source (Net of provision for taxation) 5,077,113 6,992,210 Total 5,077,113 6,992,210 9. OTHER CURRENT ASSETS a Pre-paid expenses 22,648,659 35,923,678 Deferred Asset 4,395,754 4,461,307 Total 27,044,413 40,384,985 10 . SHARE CAPITAL a Authorised share capital 50,000,000 Equity shares of 1000 each ` 50,000,000,000 50,000,000,000 (Previous Year: 50,000,000 Equity shares of ` 1,000 each) b Issued , Subscribed and Fully paid capital 45,882,000 Equity shares issued, subscribed and fully paid (Previous Year: 45,882,000,000 45,882,000,000 45,882,000 Equity shares of `1,000 each) c Par value per share 1,000 1,000 d i) For Prototype Fast Breeder Reactor (PFBR) Number of shares outstanding at the beginning of the year 45,416,000 45,416,000 Add: Issued during the year - - Number of shares outstanding at the end of the year (A) 45,416,000 45,416,000 ii) For Fast Breeder Reactor 1 and 2 (FBR 1 and 2) Number of shares outstanding at the beginning of the year 466,000 4,26,000 Add: Issued during the year - 40,000

Number of shares outstanding at the end of the year (B) 466,000 466,000 Total shares outstanding at the end of the year (A+B) 45,882,000 45,882,000 e Shares held by the holding company or by the subsidiary / - - associates of the holding company f Share holders holding more than 5% shares - Equity shares of ` 1,000 43,611,200 43,611,200 each held by The President of India (95.05%) * g Shares reserved for issue under options and - - contracts/commitments for sale of shares/disinvestment h i. Equity shares allotted as fully paid up pursuant to contracts without payment being received in cash for the period of five years - - immediately preceding 31st March 2018 ii. Equity shares allotted as fully paid up by way of bonus shares for the period of five years immediately preceding 31st March 2018 - -

iii. Equity shares bought back for the period of five years - - immediately preceding 31st March 2018

39 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018

Figures as at the end of Figures as at the end of Particulars the current reporting the previous reporting period (31.03.2018) period (31.03.2017) i Terms of security convertible into Equity /Preference shares issued - - along with the earliest date of conversion j Calls unpaid (Directors and Officers) - - k Forfeited shares - - The company has only one class of share having par value l Rs.1,000/-with equal rights for Dividend and vote.

Number of Share held by President of India & Nominee Directors * 43,611,200 43,611,200 Number of Share held by NPCIL 2,270,800 2,270,800 Total at the end of the year 45,882,000 45,882,000 * Includes 6 Equity shares of ` 1,000 each held by Directors in their official capacitiy 11. OTHER EQUITY RETAINED EARNINGS: Balance at the beginning of the year 683,258,320 683,382,544 Transfer from the statement of Profit and Loss (4,311,935) (124,224) Balance at the end of the year 678,946,385 683,258,320 12. BORROWINGS Unsecured borrowings : Term loan from Government of India 10,000,000,000 10,000,000,000 Deferred interest (Amortised cost ) 1,069,357,839 649,836,283 Total 11,069,357,839 10,649,836,283 13. OTHER NON-CURRENT FINANCIAL LIABILITIES Others : i) Micro, Small and Medium enterprises 424,265 362,405 ii) Security deposit, Earnest money deposit, Retention money from contractors and suppliers 972,228 1,517,526 Total 1,396,493 1,879,931 14. NON-CURRENT PROVISIONS Provision for employee benefits : i) Gratuity 84,779,580 97,202,817 ii) Leave salary 78,180,846 89,562,753 iii) Settlement allowance 11,612,175 11,616,934 iv) Leave travel concession 931,463 5,766,416 Total 175,504,064 204,148,920 15. OTHER NON CURRENT LIABILITIES Govt Grant 1,994,361,009 1,264,120,260 Total 1,994,361,009 1,264,120,260 16. OTHER CURRENT FINANCIAL LIABILITIES Other payables : i) Micro, Small and Medium enterprises 19,157,842 43,911,030 ii) Security deposit, Earnest money deposit, Retention money from 1,153,388,192 1,193,916,287 contractors and suppliers iii) Employee related payables 60,000 -

40 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018

Figures as at the end Figures as at the end of Particulars of current reporting the previous reporting period (31.03.2018) period (31.03.2017)

iv) Tax deducted at source (TDS) , Service tax, Sales tax, GST and other Statutory dues 6,128,825 5,953,371 v) Other deposits 199,883 42,268 vi) Other liabilities for expenses 586,112,327 626,113,895 Total 1,765,047,069 1,869,936,851 17. CURRENT PROVISIONS a Provision for employee benefits : i) Gratuity 8,906,893 7,996,841 ii) Leave salary 5,964,521 4,542,686 iii) Settlement allowance 1,152,826 128,782 iv) Leave travel concession 629,038 3,894,192 b Others - - Total 16,653,278 16,562,501 18.OTHER INCOME a Sale of scrap 241,840 - b Interest income i) On staff advances 1,251,447 1,485,751 ii)Interest on income tax refund - 2,624,262

c Miscellaneous income (Forfeiture of deposits) 27,628 20,974 d Rental income ( Tax deducted at source - Rs.26,486) 423,089 254,765 Total 1,944,004 4,385,752 19. OTHER EXPENSES Expenses on CSR Activities 5,694,939 2,991,976 Total 5,694,939 2,991,976

20) SIGNIFICANT ACCOUNTING POLICIES: B) Basis of Accounting: A) Statement of Compliance: All principal accounting policies applied are set out below. These policies have been consistently applied These Financial Statements comply in all material to all the financial years presented, unless otherwise aspects with Indian Accounting Standards ('Ind AS') stated. notified under Section 133 of the Companies Act, 2013 ('the Act') the Companies (Indian Accounting All assets and liabilities have been classified as Standards) Rules, 2015, Companies(Indian current or non-current as per the Company's normal Accounting Standards) Amendment Rules, 2016 and operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on other relevant provisions of the Act. the nature of its transactions, the Company has ascertained its operating cycle as 12 months for the Bharatiya Nabhikiya Vidyut Nigam Limited purpose of current and non-current classification of ('BHAVINI' or 'the Company') prepared its Financial assets and liabilities. Statements upto the year ended 31st March 2016 in accordance with the requirements of accounting The financial statements are prepared under the standards notified under Companies (Accounting historical cost convention on accrual basis, except for Standard) Rules, 2006 and other relevant provisions certain financial instruments which are measured at of the Act ('previous GAAP'). the fair values.

41 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 i) Functional and Presentation Currency B) Spares which can be used only in connection with a particular item of PPE, the use of which is expected to Items included in the financial statements of the be irregular, are considered as Capital stores. Company are measured using currency of the primary economic environment in which the Company operates C) Stores and spares are valued at lower of the cost or (“the functional currency”). Indian Rupee (`) is the net realizable value (as per technical evaluation). functional currency of the Company. ii) Basis of Measurement: D) In case where the costs are not ascertainable, engineer's estimates are relied upon. The Financial Statements are prepared on historical cost basis considering the applicable provisions of E) Costs include cost of purchase, cost of conversion, Companies Act, 2013 and Atomic Energy Act, 1962, freight, octroi, etc. Electricity Act 2003 except the following material items that have been measured at Fair Value as F) Issues of stores and spares, closing stocks are valued required by relevant Ind AS. at monthly moving weighted average rates.

a) Certain financial assets/liabilities measured at fair G)O&M stores spares, including consumable stores and value (refer accounting policy regarding financial loose tools, are charged to revenue at the time of instruments) and issue. II) Ind AS 7: Cash Flow Statement b) Any other item as specifically stated in accounting policy. Cash Flow Statement is prepared based on indirect method in accordance with Ind AS 7. For presentation The Financial Statements are presented in Indian in the Statement of Cash Flows, cash and cash equivalents includes cash on hand, deposits held at Rupee (`) and all values are rounded to the nearest Rupee, unless otherwise stated. call with Financial institutions and other short-term, highly liquid investments with original maturities of iii) Use of Estimates and Assumptions: three months or less that are readily convertible to known amounts of cash and which are subject to an The preparation of the Financial Statements, is in insignificant risk of changes in value. The Company is conformity with Ind AS, requires the Management to not having any Bank Overdraft during the reporting make estimates and assumptions considered in the period. reported amounts of assets and liabilities, contingent liabilities and reported income and expenses during III) Ind AS 8 : Accounting policies, changes in the year. The Management believes that the estimates Accounting estimates and Errors used in preparation of the Financial Statements are Ind AS 8 requires rectification of prior period errors prudent and reasonable. The estimates and with retrospective effect subject to limited underlying assumption are reviewed on ongoing exceptions. As the company has not commenced its basis. Future results could differ due to these estimates commercial activities, the project is under construction and the differences between the actual results and the stage and all the expenditure directly/indirectly estimates are recognized in the periods in which the related to the project are debited to CWIP/EDC, the results are known / materialize. prior period income/expense is also taken to EDC instead of restatement of Financials of previous C) SUMMARY OF SIGNIFICANT ACCOUNTING periods. POLICIES I) Ind AS 2: Inventories IV) Ind AS 12: Income Taxes Tax expense comprises current tax expense which is A) Operations and maintenance (O&M) stores spares recognised in the Statement of Profit and Loss for the consist of materials, maintenance supplies, reporting period, to the extent of income recognised consumables, loose tools awaiting use, to be in Statement of Profit and Loss. consumed in the O&M process of Property Plant Current tax Equipment (PPE) and those do not qualify as PPE Current tax is measured at the amount expected to

42 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 be paid to the tax authorities in accordance with the viii PPEs created on land not belonging to BHAVINI Income Tax Act, 1961. Current tax includes provision (owned by DAE) and for the intended use of for Income Tax computed under normal provision or BHAVINI are capitalised at the cost incurred Minimum alternate tax (MAT). Further, Taxable profit thereon and included in the PPE. might differ from profit as reported in the Statement of Profit and Loss because of items of income or B) Depreciation: expense that are taxable or deductible in other years and items that are never taxable or deductible. i) Depreciation on PPE is provided on straight line method, on the capitalized cost, over their Current tax is recognised in its Statement of Profit and estimated useful life as specified in Schedule –II of Loss for the period, except when they relate to items the Companies Act, 2013. The estimated useful that are recognized in other comprehensive income or lives, residual values and depreciation method are directly in equity, in which case, the current tax or reviewed at the end of each reporting period. deferred tax are also recognized in other Component of an item of PPE with the cost that is comprehensive income or directly in equity significant in relation to total cost of that item is respectively. depreciated separately if it's useful life differs from other components of the assets. V) Ind AS 16: Property, Plant and Equipment ii) Any software which is computer specific or A)Accounting treatment for Property, Plant and purchased along with hardware is capitalized as Equipment : “Office equipment” and the useful life of the computer is adopted. i) On transition to Ind AS, the Company has elected to continue with the carrying amount of all its 'PPEs st iii) Considering the materiality, depreciation on the recognized as at 1 April 2015 measured as per low value asset,viz.,Individual asset/PPE costing the previous GAAP and use that carrying value as up to Rs.5000 are fully depreciated in the year of the deemed cost of the Property, Plant and capitalization by retaining Re.1 as residual value. Equipment. iv) Where the cost of depreciable asset has ii) All PPEs acquired/constructed are capitalized at undergone a change due to increase/decrease in the cost of acquisition/ construction/ fabrication/ long term liabilities on account of price adjustment, erection or on engineer's estimates, wherever the settlement of arbitration/court cases, change in actual cost is not available/ ascertainable. duties or similar factors, the unamortized balance of such assets is depreciated prospectively over iii) PPEs taken over, if any, from the Indira Gandhi the residual life of such asset. Centre for Atomic Research (IGCAR), Department of Atomic Energy (DAE), Government of India v) Where the life and / or efficiency of an asset is (GOI), are recorded at the cost available from the increased due to renovation and modernization, records of the respective organisation or on the expenditure thereon along with its engineer's estimate, wherever costs are not unamortized depreciable amount is charged available/ ascertainable. prospectively over the revised / remaining useful life determined by technical assessment. iv) Payments made towards expenditure on development of land are treated as cost of land. vi) Spares parts procured along with the PPE or subsequently, are capitalized and added in the v) Any trade discount/ rebate availed is deducted in carrying amount of such item. Such additions are arriving at acquisition price. depreciated over the remaining useful life of the related Plant and Equipment. vi) During the period of construction / pre-project activities, assets are capitalised on their being vii)Depreciation of PPE are charged to EDC, as the available for use. project is under construction. vii) The cost of PPE comprises its purchase price and attributable costs of bringing the asset to its working condition for its use.

43 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 C) Capital Work-in-Progress (CWIP): E) Others : i) On transition to Ind AS, the Company has elected to Rental income, Interest on Employee loans and continue with the carrying value of Capital Work-in- advances, forfeiture of Deposits, Miscellaneous st receipts etc are accounted as revenue. Progress ('CWIP') recognized as at 1 April 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of CWIP. VII) Ind AS 19: Employee Benefits ii) C W I P i n c l u d e s a l l e x p e n d i t u r e f o r A) Short-term Employee Benefit Obligations acquisition/construction of assets. All short-term employee benefits such as salaries, iii) Expenditure on acquisition/construction of assets wages, allowances, performance incentive, includes cost of preparing project report and other employee welfare costs, exgratia, etc., are relatable expenses on site evaluation, land survey, recognised during the period in which the employee location study, environmental impact assessment, render services and are measured at undiscounted conducting feasibility study, study of design related amount expected to be paid when the liabilities are parameter, etc. settled. iv) CWIP also includes all indirect costs, all incidental NPCIL/IGCAR/GOI employees expenses incurred during construction pending Leave Salary, pension contribution, gratuity relating allocation. to employees on deployment from Nuclear Power Corporation of India Limited (NPCIL), IGCAR and v) All indirect costs relating to project are identified GOI are provided for as per claims made by those and taken to the respective head and if not employers according to prescribed rules. relatable to any particular head, to “Expenditure during construction pending allocation” (EDC). EDC B) Long-term Employee Benefit Obligations is allocated on pro rata basis to the assets capitalised on commencement of commercial The liabilities for long term employees benefits such operation. Interest income earned on short term as earned leave, half pay leave and Leave Travel deposit made out of unspent balance of Concession (LTC) are not expected to be settled Government of India Loan (GOI) is credited to EDC wholly within 12 months after the end of the period Account. Income tax is not applicable for capital in which the employees render the related service. receipts and the interest stated above is of capital in They are measured at the present value of expected nature as per Ind AS 23, Income tax on such interest future payments to be made in respect of services is not provided in the books. provided by employees up to the end of the reporting period. The expected costs of these VI) Ind AS 18: Revenue benefits are accrued over the period of employment using the projected unit credit method. Actuarial A) Revenue recognition: gains and losses arising from the experience Revenue is recognized on accrual basis, when its adjustments and changes in actuarial assumptions collection or receipt is reasonably certain. are charged to the expenditure in which they arise B) Liquidated damages: except those included in cost of assets if identified Untilliquidated damages are decided as and as permitted. These benefits are valued recoverable, retentions made on this account, if any, annually by independent actuaries. are shown under liabilities. During construction phase, in respect of all contracts, liquidated C) Post-Employment Obligations damages recovered from suppliers/contractors are The company provides the following post- taken to the respective head of account, at the time employment benefits: of closure of contracts. i ) Defined Benefit Plans such as Gratuity, settlement C) Insurance claims: allowance Claims lodged with insurance companies and other minor incomes are accounted for as and when these are settled by the concerned agencies. ii) Defined Contribution Plans such as Provident Fund D) Sale of scrap: Defined Benefit Plans Sale of scrap is accounted for as and when the The company does not have plan assets for the transaction materializes. purpose of funding the defined employee benefits

44 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 scheme. Hence disclosure related to plan assets has Statement of Profit and Loss except for grants received been excluded. in the form of rebate or exemption which are deducted in reporting the related expense. The cost of providing defined benefit plans such as gratuity are determined on the basis of present value of The benefit of a government loan at a below-market defined benefits obligation which is computed using the rate of interest is treated as a government projected unit credit method with independent actuarial grant/subsidy and measured as the difference valuation made at the end of each annual reporting between proceeds received and the fair value of the period, which recognizes each period of service as loan based on the interest rate as notified by the given rise to additional unit of employees benefit Ministry of Finance for the relevant period or prevailing entitlement and measuring each unit separately to build market interest rates. The grant set up as deferred up the final obligation. income is recognised in the EDC Account during construction phase of the project and are to be The net interest cost is calculated by applying the recognized in the Statement of Profit and Loss after discount rate to the net balance of the defined benefit commissioning of the project on a systematic basis. obligation. This cost is included in employee benefit expense except those included in cost of assets as IX) Ind AS 21: The Effects of Changes in Foreign permitted. Exchange Rates Re-measurements comprising of actuarial gains and The Financial Statements of Company are presented losses arising from experience adjustments and change in INR, which is the functional currency. in actuarial assumptions is recognised in the EDC In preparing the Financial Statements, Account during construction phase of the project and are to be recognized in the Other Comprehensive Income a) Transactions in currencies other than the entity's (OCI) through the Statement of Profit and Loss after functional currency are recognised at the rates of commissioning of the project. exchange prevailing at the dates of the transactions. Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and b) At the end of each reporting period, settlements) is recognised as expenditure except those ➢Monetary items denominated in foreign currencies included in cost of assets as permitted in the period in are translated at the rates prevailing at that date. which they occur. ➢Non-monetary items denominated in foreign Defined Contribution Plans currency are reported at the exchange rate ruling on the date of transaction. Contributions to Provident Fund is defined contribution plans and such contributions are recognised as an c) Exchange differences on monetary items are expense when employees have rendered service recognized, in the head of account in which the entitling them for such contribution. expenditure is originally recognized, in the period in which they arise. VIII) Ind AS 20: Accounting for Government Grants and Disclosure of Government Assistance X) Ind AS 23: Borrowing Costs Government grants are recognized when there is Borrowing cost includes interest, commitment reasonable assurance that the Company will comply charges, brokerage, underwriting costs, discounts / with the conditions attached to them and that the grants premiums, financing charges, exchange difference will be received. to the extent they are regarded as interest costs and all ancillary /incidental costs incurred in connection Government grants (grants related to income) are with the arrangement of borrowing. recognized as income over the periods necessary to match them with the costs for which they are intended to To the extent that an entity borrows funds compensate on a systematic basis. Government grants specifically for the purpose of obtaining a that are receivable as compensation for expenses or qualifying asset, the entity shall determine the losses already incurred or for the purpose of providing amount of borrowing costs eligible for capitalization immediate financial support with no future related costs as the actual borrowing costs incurred on that are recognized in the Statement of Profit and Loss in the borrowing during the period less any investment period in which they become receivable. Grants related income on temporary investment of those to income are presented under other income in the borrowings.

45 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 Borrowing costs which are directly attributable to Subsequent measurement acquisition/construction on qualifying assets that For purposes of subsequent measurement financial necessarily takes a substantial period of time to get assets are classified in three categories: ready for its intended use are capitalized as a part of ➢Financial assets measured at amortized cost cost pertaining to those assets. All other borrowing costs ➢Financial assets at fair value through OCI are recognised as expense in the period in which they ➢Financial assets at fair value through profit or lossz are incurred. Financial assets measured at amortized cost XI) Ind AS 24: Related Party Disclosures Accordance with the requirement of Indian Accounting Financial assets are measured at amortized cost if Standard 24 on Related Party Disclosures the company the financials asset is held within a business model provided the key management personnel compensation whose objective is to hold financial assets in order to in total in its Notes of accounts and for each of the collect contractual cash flows and the contractual following categories: terms of the financial asset give rise on specified dates to cash flows that are solely payments of (a)Short-term employee benefits; principal and interest on the principal amount (b)Post-employment benefits; outstanding. These financials assets are amortized (c)Other long-term benefits; using the effective interest rate ('EIR') method, less (d)Termination benefits; and impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition Ind AS 109: Financial Instruments, and fees or costs that are an integral part of the EIR. Ind AS 32: Financial Instruments: Presentation and The EIR amortization is included in finance income in Ind AS 107: Financial Instruments: Disclosures. the Statement of Profit and Loss. The losses arising Financial Instruments from impairment are recognized in the Statement of Profit and Loss. A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. The Company Financial assets at fair value through OCI ('FVTOCI') recognizes a financial asset or financial liability in its Financial assets are measured at fair value through balance sheet only when the entity becomes party to the other comprehensive income if the financial asset is contractual provisions of the instrument. held within a business model whose objective is achieved by both collecting contractual cash flows A)Financial Assets: and selling financial assets and the contractual terms of the financial asset give rise on specified dates to A financial asset is any asset that is cash, equity cash flows that are solely payments of principal and instrument of another entity or contractual right to interest on the principal amount outstanding. At receive cash or another financial asset or to exchange initial recognition, an irrevocable election is made financial asset or financial liability under condition that (on an instrument-by-instrument basis) to designate are potentially favorable to the Company. investments in equity instruments other than held for trading purpose at FVTOCI. Fair value changes are recognized in the other comprehensive income Financial assets held by the Company: ('OCI'). However, the Company recognizes interest Financial assets of the Company comprise cash and cash income, impairment losses and reversals and foreign equivalents, Bank balances, trade receivables (if any), exchange gain or loss in the Statement of Profit and loans to employee / related parties / others, security Loss. On derecognition of the financial asset other than equity instruments designated as FVTOCI, deposit, claims recoverable etc. cumulative gain or loss previously recognised in OCI is reclassified to the Statement of Profit and Loss. Initial recognition and measurement Financial assets at fair value through profit or loss All financial assets are recognized at their transaction ('FVTPL') price. The company has not considered the immaterial Any financial asset that does not meet the criteria for difference (if any) in its fair value. classification as at amortized cost or as financial

46 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 assets at fair value through other comprehensive For recognition of impairment loss on other financial income is classified as financial assets at fair value assets, the Company determines whether there has through profit or loss. Further, financial assets at fair been a significant increase in the credit risk since value through profit or loss also include financial initial recognition. If credit risk has increased assets held for trading and financial assets significantly, lifetime ECL is provided. For assessing designated upon initial recognition at fair value increase in credit risk and impairment loss, the through profit or loss. Financial assets are classified Company assesses the credit risk characteristics on as held for trading if they are acquired for the instrument-by-instrument basis. purpose of selling or repurchasing in the near term. Financial assets at fair value through profit or loss ECL is the difference between all contractual cash are fair valued at each reporting date with all the flows that are due to the Company in accordance changes recognized in the Statement of Profit and with the contract and all the cash flows that the entity Loss. expects to receive (i.e. all cash shortfalls) discounted at the original EIR. Derecognition Impairment loss allowance (or reversal) recognized The Company derecognises a financial asset only during the period is recognized as expense/income when the contractual rights to the cash flows from the in the Statement of Profit and Loss. asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the B) Financial Liabilities: Company neither transfers nor retains substantially A financial liability is any liability that a contractual all the risks and rewards of ownership and continues obligation to deliver cash or another financial asset to control the financial asset, the Company to another entity; or to exchange financial assets or recognizes its retained interest in the asset and an financial liabilities with another entity under associated liability for amounts it may have to pay. conditions that are potentially unfavourable to the Impairment of financial assets entity. The Company assesses impairment based on Financial Liabilities of the Company: expected credit loss ('ECL') model on the following: The financial liability of the Company includes ➢Financial assets that are measured at amortised Borrowings from Government of India, Accrued cost; and expenses and other payables. ➢Financial assets measured at FVTOCI. Initial recognition and measurement ECL is measured through a loss allowance on a All financial liabilities at initial recognition are following basis:- classified as financial liabilities at amortized cost or ➢The 12 month expected credit losses (expected financial liabilities at fair value through profit or loss, credit losses that result from those default events on as appropriate. All financial liabilities classified at the financial instruments that are possible within 12 amortized cost are recognized initially at fair value months after the reporting date) net of directly attributable transaction costs. Any ➢Full life time expected credit losses (expected difference between the proceeds (net of transaction credit losses that result from all possible default costs) and the fair value at initial recognition is events over the life of financial instruments) recognised in the Statement of Profit and Loss or in the CWIP, if another standard permits inclusion of The Company follows 'simplified approach' for such cost in the carrying amount of an asset over the recognition of impairment on trade receivables or period of the borrowings using the Effective interest contract assets resulting from normal business rate ('EIR') method. transactions. The application of simplified approach does not require the Company to track Subsequent measurement changes in credit risk. However, it recognises The subsequent measurement of financial liabilities impairment loss allowance based on lifetime ECLs at depends upon the classification as described each reporting date, from the date of initial below:- recognition.

47 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 Financial Liabilities classified as Amortised Cost number of shares outstanding, for the effects of all Financial Liabilities that are not held for trading and dilutive potential ordinary shares. are not designated as at FVTPL are measured at amortised cost at the end of subsequent accounting XIII) Ind AS 36: Impairment of Assets periods. Amortised cost is calculated by taking into At the end of each reporting period, the Company account any discount or premium on acquisition and reviews the carrying amounts of its PPE and other fees or costs that are an integral part of the EIR. intangible assets to determine whether there is any Interest expense that is not capitalized as part of indication that these assets have suffered an costs of assets is included as Finance costs in the impairment loss. If any such indication exists, the Statement of Profit and Loss. recoverable amount of the asset is estimated in order to determine the extent of the impairment loss Financial Liabilities classified as Fair value (if any). through profit and loss (FVTPL) Financial liabilities classified as FVTPL includes Where it is not possible to estimate the recoverable financial liabilities held for trading and financial amount of an individual asset, the Company liabilities designated upon initial recognition as estimates the recoverable amount of the cash- FVTPL. Financial liabilities are classified as held for generating unit ('CGU') to which the asset belongs. trading if they are incurred for the purpose of The Company has determined power stations repurchasing in the near term. Financial liabilities covered under individual tariff notification as a designated upon initial recognition at FVTPL only if the criteria in Ind AS 109 is satisfied. CGU. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is Derecognition considered impaired and is written down to its A financial liability is derecognised when the recoverable amount. The resulting impairment loss is obligation under the liability is discharged / recognised in the Statement of Profit and Loss.- cancelled / expired. When an existing financial XIV) Ind AS 37: Provisions, Contingent Liabilities and liability is replaced by another from the same lender Contingent Assets on substantially different terms, or the terms of an existing liability are substantially modified, such an Provisions are recognised when there is a present exchange or modification is treated as the de legal or constructive obligation as a result of a past recognition of the original liability and the event and it is probable that an outflow of resources recognition of a new liability. The difference in the embodying economic benefits will be required to respective carrying amounts is recognized in the settle the obligation and a reliable estimate can be Statement of Profit and Loss. made on the amount of the obligation. Such provisions are determined based on management Offsetting of financial instruments estimate of the amount required to settle the Financial assets and financial liabilities are offset obligation at the reporting date. When the Company expects some or all of a provision to be and the net amount is reported in the balance sheet reimbursed, the reimbursement is recognised as a if there is a currently enforceable legal right to standalone asset only when the reimbursement is offset the recognised amounts and there is an virtually certain. intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously. Present obligations arising under onerous contracts are recognised and measured as provisions. An XII) Ind AS 33: Earnings Per Share onerous contract is considered to exist when a The Company measured basic earnings per share by contract under which the unavoidable costs of dividing profit or loss attributable to ordinary equity meeting the obligations exceed the economic holders of the Company (the numerator) by the benefits expected to be received from it. weighted average number of ordinary shares outstanding (the denominator) during the period. Contingent liabilities are disclosed on the basis of judgment of management/independent experts. The Company measured diluted earnings per share, These are reviewed at each reporting date and are by adjusting profit or loss attributable to ordinary adjusted to reflect the current management equity shareholders and the weighted average estimate.

48 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 Contingent Assets are not recognized, however, asset or a liability, the Company takes into account disclosed in financial statement when inflow of the characteristics of asset and liability if market economic benefits is probable. participants would take those into consideration. Fair value for measurement and / or disclosure XV) Ind AS 38: Intangible Assets purposes in these Financial Statements is determined A) On transition to Ind AS, the Company has elected in such basis except for transactions in the scope of to continue with the carrying value of Intangible Ind AS 2, 17 and 36. Normally at initial recognition, Assets recognized as at 1st April 2015 measured the transaction price is the best evidence of fair as per the previous GAAP and use that carrying value. value as the deemed cost of its Intangible Assets. The fair value of an asset or a liability is measured using the assumptions that market participants would B) Intangible Assets acquired separately are use when pricing the asset or liability, assuming that measured on initial recognition at cost. After market participants act in their economic best initial recognition, intangible assets are carried interest. at cost less any accumulated amortization and accumulated impairment losses. A fair value measurement of a non-financial asset takes into account a market participant's ability to C) Software which is not an integral part of related generate economic benefits by using the asset in its hardware is treated as intangible asset. highest and best use or by selling it to another market participant that would use the asset in its D) An item of Intangible Asset is derecognized on highest and best use. disposal or when no future economic benefits are The Company uses valuation techniques those are expected from its use or disposal. Any profit or appropriate in the circumstances and for which loss arising from derecognition of an Intangible sufficient data are available to measure fair value, Asset is determined as the difference between maximizing the use of relevant observable inputs the net disposal proceeds and the carrying and minimizing the use of unobservable inputs. amount of the asset and are recognized in Statement of Profit and Loss or in Statement of Expenditure during Construction Pending XVII) Ind As 114 : Regulatory Deferral Accounts Allocation. Where an expenditure incurred during the period of construction of a project including upgradation, E ) Any software which is added as independent modernization or renovation is of the nature of software for functional use is recognised as expenditure and not allowed to be capitalized as 'Intangible Assets' and is amortized on straight part of cost of relevant PPE in accordance with the line method over the licence period or 5 years, Ind AS, but is nevertheless permitted by the whichever is earlier. The estimated useful life and Regulator ('DAE'), to be recovered from the amortization method are reviewed at the end of beneficiaries in future through tariff, the right to each reporting period, with the effect of any recover the same is recognized as a Regulatory changes in estimate being accounted for on Asset ('RRA') and corresponding Regulatory Income prospective basis. is recognised as per Ind AS 114 - Regulatory Deferral Accounts, if it fulfills the conditions for such F) Amortisation of Intangible assets is charged to recognition laid down in the Ind AS 114. On EDC, as the project is under construction. recovery, the corresponding RRA is released with a corresponding debit to the Expenditure. XVI) Ind AS 113: Fair Value Measurement XVIII) The following Indian Accounting Standards Fair value is the price that would be received to sell are not applicable to the company at this stage an asset or paid to transfer a liability in an orderly transaction between market participants at the 1. Ind AS102-Share based payment as the company measurement date, regardless of whether that price is not involved/ undertaken any share based is directly observable or estimated using another payments. valuation technique. In estimating the fair value of an

49 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 2. Ind AS103- Business combinations, as the debts: company is not involved in business combinations. Value of additional claims made by different contractors / suppliers is `44,28,70,341(Previous 3. Ind AS104- Insurance contracts as the company is year: `49,17,13,084). not issuing Insurance contracts B)i) Case filed by a building contractor - 4. Ind AS106- Exploration for and Evaluation of `1,49,83,320 along with interest@18% from mineral resources, as the company is not November 2007 (Previous year: `1,49,83,320 engaged in exploration of mineral resources. along with interest @ 18%): A contract was awarded to the Building contractor 5. Ind AS 108- operating segments, as the for construction of a building. The work could not be operation of the company is considered as single completed by the contractor even within the segment. extended time. The contract was terminated by BHAVINI and the unfinished work was completed by 6. Ind AS110- Consolidated financial statements, another contractor. The contractor filed a case as the company does not have any subsidiary. against BHAVINI for terminating the contract, for which BHAVINI has also submitted a counter claim to Ind AS111-Joint arrangements as the company 7. the tune of `1,00,00,000. The case is pending does not have any joint arrangement with any before the Honourable High court of Judicature of other entity. Madras. 8. Ind AS112- Disclosure of interest in other entities as the company does not have any interest in any ii) Claims made by M/s Power Grid Corporation of other entity. India Ltd. (PGCIL) towards transmission charges: · PGCIL has claimed `99,98,83,834 (Previous year: 9. Ind AS 27-Separate financial statements as the ` 83,63,04,974 - towards transmission charges for Company does not have any investment in 220kV – for 2 Assets out of 3 Assets,based on subsidiary, joint venture etc. Central Electricity Regulatory Commission (CERC) 10. Ind AS 28-Investment in Associates and joint order. BHAVINI has filed an appeal (No. 151 of ventures as the Company does not have any 2015) with Appellate Tribunal for Electricity (APTEL) investment in associates, joint venture , subsidiary against the CERC order, in June 2015. etc. · PGCIL filed another appeal with APTEL vide their 11. Ind AS 29- Financial repor ting in appeal No.168 of 2015 against the order of CERC Hyperinflationary economics as the company has rd not identified any Hyperinflationary Economy / for the 3 Asset. situation during the reporting period. · Both the cases are pending before APTEL and are 12. Ind AS 41- Agriculture, as the company's sub-judice. activities are not related to agricultural activities. iii) Claims made by a supplier towards levy of Liquidated damages – Claim amount - 82,08,275 XIX) Corporate Social Responsibility: ` In line with the provisions of the Companies Act, A contract was awarded to the party for supply of 2013, expenses on corporate social responsibility material. There was delay in supply and have been charged to the Statement of Profit and consequently liquidated damages were levied. The Loss. party has disputed the levy of liquidated damages.Hence, the party sought arbitration for the 21) Contingent liabilities and commitments: same. I) Contingent liabilities: iv) The details of issues pending with Income tax A) Claims against company not acknowledged as authorities are as under : 50 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 (Amount in `) Name of the Nature Total Total Amount Period to Forum where Statue of the Demand paid under which the the dispute is Dues protest/ amount pending adjustment relates The Income Income 15,21,770 3,04,354 AY 2010 -11 Commissioner of Tax Act, Tax Income NIL NIL AY 2011 -12 1961 Tax(Appeals) -1, 16,03,240 3,20,648 AY 2012 -13 Chennai

II) Commitments: 23) Disclosure of Related Parties transaction (IndAS – 24): A)Estimated amount of capital commitments remaining Key management personnel: to be executed on capital account and not provided for is 175,12,45,002(Previous year: 207,84,22,639). ` ` a)Functional Directors : This included `51,88,57,367(Previous year: `69,49,92,761) for pre-project activities for FBR-1 Sl. No. Name Designation and 2. 1 Dr. Kallol Roy Chairman and Managing Director 2 Shri. K.A.David Director (Operation) (upto 30.11.2017) 3 Shri. K. Rajagopalan Director(Constr uction)(upto 31.12.2017) B) Other Commitments: 4 Shri. V. Rajan Babu Director (Technical) 5 Shri. V. Murug aiyan Director (Finance) (from 20.07.2017) i) Purchase, Service and Maintenance contracts `25,83,01,742/- (Previous year: `23,52,65,900). There are no pending commitments for pre-project b)Other Directors& Company Secretary: activities for FBR-1 and 2. Sl. No. Name Designation ii) Service charges `10,92,77,986 (Previous year: 1 Shri.K.N.Vyas Nominee Director `11,73,24,272). There are no pending commitments 2 Dr.Arun Kumar Bhaduri Nominee Director for pre-project activities for FBR-1 and 2. 3 Shri.R.A.Rajeev Nominee Director (upto12.04.2017) 4 Shri.Sanjeev Sood Nominee Director (upto 09.05.2017)

22) Fixed assets: 5 Shri.M.A.Inbar asu Nominee Director (from 19.07.2017) 6 Shri.R amendra Gupta Independent Director Tangible assets: 7 Shri.Anil K umar Jain Nominee Director (upto 31.07.2017) A) The land at Kalpakkam measuring 261.27 acres 8 Shri.R ameshw ar Prasad Gupta Nominee Director (from 20.10.2017) for plant site and 62.14 acres for residential colony 9 Shri.Aniruddha Kumar Nominee Director 10 Shri. V. Viswanathan Company Secretary used by BHAVINI belongs to DAE/IGCAR. DAE/IGCAR.has not issued any Orders/OM for transfer of land to BHAVINI.

The Company has, so far, incurred a sum of `43,17,317 (Previous Year: `43,17,317) for development of the land, which has been shown under “Land”.

B) Government Subsidy: The Company has received a Government Subsidy of `6,91,200 for Solar Cooking System during the Financial Year 2013-14. However as per Ind AS 20 'Accounting for Government Grants and Disclosure of Government Assistance' Govt. grants relating to tangible fixed assets are to be treated as Deferred income and to be realized to the Statement of Profit and loss over the expected useful life of the asset concerned.As the company has not commenced its commercial activities, the project is under construction stage and all the expenditures directly /indirectly

51 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018

The Company has provided the following compensation to Key management personnel:

(Amount in `) Sl.No Particulars FY 2017-18 FY 2016-17 a) Short- term employee benefits to Functional 2,16,10,688 2,25,28,176 directors

b) Short term employee benefits to Independent 1,53,400 1,49,300 - Director

c) P ost-employment benefits - - d) Other long-term benefits - - e) Termination benefits 64,52,154 -

24) BHAVINI has not absorbed any employees from ii.Additional Actuarial Assumptions in respect of NPCIL/ IGCAR during the year 2017-18 (Previous Earned Leave year: Nil) Particulars Valuation as at Valuation as at 31.03.2018 31.03.2017 Proportion of leave 5.00% 5.00% 25) The present value of the Defined benefit obligation availment (DBO) namely, earned leave and gratuity, and the Proportion of encashment 95.00% 95.00% on separation related current service cost and past service cost were measured using “Projected Unit Credit Method”. iii. The discount rate as on the valuation date is based on the market yields of Government bonds, of a term that matches the term of the liability and applicable to the The Company does not have plan assets for the purpose period over which the obligation is to be settled. of funding the defined employee benefits obligation; iv. The assumption of future salary increase, considered hence related disclosure is not applicable. in actuarial valuation taking into account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. For the actuarial valuation of the liability of Gratuity, Earned Leave, Leave Travel Concession and Settlement b) The plan exposes the company to actuarial risks such Allowance, following disclosures are made: as : i. Interest rate risk – The DBO calculated uses a discount a) Principal Actuarial Assumptions rate based on government bonds. If bonds yields fall, the defined benefit obligation will tend to increase. I. Gratuity, Earned Leave, Settlement Allowance and Leave Travel Concession ii. Salary inflation risk – Higher than expected increases in salary will increase the defined benefit obligation.

iii. Demographic risk – This is the risk of volatility of Valuation as at Valuation as at Particulars results due to unexpected nature of decrements thatz 31.03.2018 31.03.2017 include mortality, attrition, disability and retirement. Discount rate 7.40% 7.17 % The effects of these decrements on DBO depends upon Expected rate of salary 7.00% 7.00% increase the combination, salary increase, discount rate and Expected return on plan - - vesting criteria. assets Attrition rate 5.00% 5.00% Mortality rate during Indian assured lives mortality(2006-2008) iv. Asset Liability Mismatch- Unless the funds are Employment invested with a term of assets replicating the term of liability, this risk shall exist.

52 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 c) Liability recognized in the Balance Sheet (Amount in `) Sl. Gratuity Earned Leave No Particulars 2017-18 2016-17 2017-18 2016-17 1 Present value of 10,51,99,658 7,76,56,193 9, 41,05,439 6,26,38,109 obligation at the beginning

2 Current service cost 99,62,838 1,40,67,510 94,88,918 55,81,768

3 Interest on 75,42,815 58,83,406 67,47,360 45,28,439

obligation

4 Net actuarial (2,41,98,926) 96,91,229 71,93,554 2,87,05,248

(gain)/ loss recognized in the year 5 Benefits paid (48,19,912) (20,98,680) (3,33,89,904) (73,48,125) 6 Acquisition/ - - - - divestures 7 Present Value of 9,36,86,473 10,51,99,658 8,41,45,367 9,41,05,439 obligations at the end

(Amount in `) Settlement allowance Leave Travel Concession Sl. Particulars No. 2017 -18 2016 -17 2017 -18 2016-17 1 Present value of 1,17,45,716 90,44, 456 96,60,608 78,09,890

obligation at the beginning 2 Current service 14,16,727 12,51,642 15,60,501 17,48,245 cost 3 Interest on 8,42,168 6,94,614 6,92,666 3,59,359 obligation 4 Net actuarial (8,25,988 ) 7,55,004 (47,25,746) 60,04,576 (gain)/ loss recognized in the year 5 Benefits paid (4,13,622) - (56,27,528) (62,61,462) 6 Present V alue 1,27,65,001 1,17,45,716 15,60,501 96,60,608 of obligations at the end

53 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 d) Values recognized in the statement of EDC: (Amount in `) Gratuity Earned Leave Sl. Particulars 2017-18 2016-17 2017-18 2016-17 No.

1 Transfer liability - - - - 2 Current service cost 99,62,838 1,40,67,510 94,88,918 55,81,768 3 Interest on obligation 75,42,815 58,83,406 67,47,360 45,28,439

4 Net actuarial (gain)/ (2,41,98,926) 96,91,229 71,93,554 2,87,05,248 loss recognized in the year

5 Past service cost - - - - 6 Curtailment / - - - - Settlement cost 7 Total included in (66,93,273 ) 2,96,42,145 2,34,29,832 3,88,15,455 “Employee benefit expenses”

(Amount in `) Settlement Allo wance Leave Travel Concession Sl. Particulars No. 2017 -18 2016 -17 2017-18 2016-17

1 Transfer liability - - - -

2 Current service cost 14,16,727 12,51,642 15,60,501 17,48,245

3 Interest on obligation 8,42,168 6,94,614 6,92,666 3,59,359

4 Net actuarial (gain) / (8,25,988) 7,55,004 ( 47,25,746 ) 60,04,576 loss recognized in the year 5 Past service cost - - - -

6 Curtailment / - - - - Settlement cost 7 Total included in 14,32,907 27,01,260 ( 24,72,579 ) 81, 12,180 “Employee benefit expenses” e) Sensitivity Analysis : Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

54 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 i. Gratuity (Amount in `) 31.03.2018 31.03.2017 Particulars Incr ease Decr ease Increase Decrease Discount Rate (100 8, 49,68,997 10,39,10,517 3,59,40,821 4,57,60,822 base points)

Future Salary 9,64,48 ,315 9,06, 68,438 11,44,78,862 9 ,52,62,773 Growth (100 base points) Withdrawal Rate 9,39,63 ,698 9,34, 08,228 10,51,68,930 10 ,42,33,795 (100 base points) ii. Earned Leave (Amount in `) 31.03.2018 31.03.2017 Particulars Increase Decrease Increase Decrease

Discount Rate (100 7,60, 78,959 9,36,34,921 9,06,72,390 9,82,21,816 base points) Future Salary Growth 9,38,03,976 7,58,00,165 9,53,99,472 9,28,55,873

(100 base points) Withdrawal Rate (100 8,43,45 ,565 8,39, 44,601 9,40,44,450 9 ,41,86,024 base points) iii. Settlement Allowance (Amount in `) 31.03.2018 31.03.2017 Particulars Increase Decrease Increase Decrease

Discount Rate (100 1,15,27,286 1,42,30,515 1,11,24,368 1,24,97,442 base points) Future Salary Gr owth 1,42,21,652 1,15,12,263 1,24,62,205 1,11,23,193 (100 base points) Withdrawal Rate 1,27,90,462 1,27,39,486 1,15,22,547 1,19,57,139 (100 base points) iv. Leave Travel Concession (Amount in `) 31.03.2018 31.03.2017 Particulars Increase Decrease Increase Decrease Discount Rate (100 base 15,31,842 15,89,971 90,36,533 1,03,08,835 points) Future Salary Growth 15,60,501 15,60,501 1,02,30,584 91,19,614

(100 base points) Withdrawal Rate (100 15,60,501 15 ,60,501 95,25,359 98,24,838 base points)

55 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 26) In compliance to the requirements of Ind AS 37, movement of provisions is as under: (Amount in `)

Additions Sl. Head of As on Paid / Adjusted As on during the No. Account 31.03.2017 during the year 31.03.2018 year

Leave 1 9,41,05,439 (3,33,89,904) 2,34,29,832 8,41,45,367 encashment

2 Gratuity 10,51,99,658 (48,19,912) (66,93,273) 9,36,86,473

Settlement 3 1,17,45,716 (4,13,622) 14,32,907 1,27,65,001

allowance Leave Travel 4 96,60,608 (56,27,528 ) (24,72,579 ) 15,60,501 Concession Total 22,07,11,421 (4,42,50,966 ) 1,56,96,887 19,21,57,342 27) Disclosure for Corporate Social Responsibility (CSR): As per the Companies Act, 2013, BHAVINI is required to spend at least2% of the average net profits of the three immediately preceding financial years on CSR.

I)There is no mandatory obligation to spend towards CSR since the average loss for the preceding three years is `8,68,384(Previous Year : Profit `10,08,276).

II)However,the total amount spent during the year 2017-18 is `56,94,939(Previous year: `29,91,976).

III)The head wise amounts spent during the year are as follows:

(Amount in `) Yet to be paid Sl Paid (Liability created for Total Heads Details No the work done) 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17

Constructi on/acqui 1 Rural Development - - sition of 47,59,010 4,05,646 47,59,010 4,05,646 the assets

i) Education and skill 2,48,400 4,95,900 - 1,24,200 2 ,48,400 6 ,20,100 2 Others development ii) Human Health care - 9,36,812 - - - 9 ,36,812

iii) Environment 6,87,529 10,29,418 - - 6 ,87,529 1 0,29,418 Management

Grand Total 56,94,939 28,67,776 - 1,24,200 56,94,939 29,91,976

56 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 28) The company has details, to the extent available, as to which of its suppliers are (i) Micro, small and medium enterprises and (ii) Ancillary/small scale industrial undertakings, holding permanent registration certificate issued by the Directorate of Industries of the State/UnionTerritories. The company has not receivedclaim for interest on delayed payments from any enterprise registered under the relevant Act (MSMED Act).

29) Miscellaneous receipts such as sale of tender forms have been adjusted against relevant expenditure.

30) In the opinion of the management, the value on realization of “Financial Assets” in the ordinary course of business is not less than the amount at which these are stated.

Deposits with Govt.authoritiesviz. for LPG and Telephone are valued at transaction value, as the refundable time period is not defined.

31) Earnings per share after Tax (Basic and Diluted) is calculated as under: (Amount in `) Denominator - Weighted

Numerator - Net profit/(Loss) as per average number of equity Earning per Year shares outstanding (Face value Profit and Loss Statement share of `1000 each) 2017-18 (43,11,935 ) 4,58,82,000 (0.094) 2016-17 (1,24,224) 4,58,42,986 (0.003)

As Prototype Fast Breeder Reactor (PFBR) is under construction, company does not have turnover from its commercial operation and the profit/(Loss) shown in the Profit and Loss Statement is from “Other income” (Refer Note-18).

32.I) Details of transactions in foreign currency on accrual basis: (Amount in `) Particulars 2017-18 2016-17 i) Value of import on CIF basis - - ii) Expenditure in foreign currency a) Royalty - - b) Know-how - - c) Professional & consultation fees - - d) Interest - - iii) Earnings in foreign exchange - - The foreign exchange gain / loss has been taken to respective items as the project is under construction.

II)The information with respect to the total value of all III) The information with respect to the amount remitted imported raw materials, spare parts and components during the year in foreign currencies on account of consumed during the year and the total value of all dividends, with a specific mention of the total number of non-resident shareholders, the total number of shares indigenous raw materials, spare parts and components held by them on which the dividends were due and the similarly consumed and the percentage of each to the year to which the dividends related to are not total consumption, being confidential in nature in the applicable as all the shares are held by GOI and NPCIL. opinion of management, has not been disclosed as per 33) Fair Value Measurement as per Ind AS 113 : nd DAE Order No. AEA/18/i/89-ER/3345 dated 22 The company has given staff loans and has collected November 1989. Security Deposit and Retention money from

57 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 customers/suppliers which are reflected as assets Interest `106,93,57,839 (Previous Year : and liabilities respectively. Since these are financial `64,98,36,283), which is calculated by Effective instruments as per Ind AS, they have been discounted Interest Rate (EIR) method, is recognized in the EDC at appropriate discounting factor and the Account considering the interest rate of 11.50 % as discounted value is disclosed in the Financial per Ministry of Finance, Government of India Statements. notification vide Office Memorandum No. F.No.5 th As regards to staff loan the company has adopted (3)-B(PD)/2014 dated 29 December 2014 on discounting factor at 7.00% being the SBI Deposit 'Loans and Advances by the Central Government. rate and as regards to Security deposit and Interest earned on temporary deposit of such funds Retention Money, the company has adopted amounting to `21,32,63,740 has been taken to EDC discounting factor at 8.65% being SBI Lending Rate. account, in which interest on GOI Loan is accounted. As the said interest earned, is of capital in nature as 34) Government of India Loan: per Ind AS 23, Income tax on such interest is not provided in the books. However the company has The revised approved capital cost of PFBR is accounted the TDS and paid advance income tax on ` 5677,00,00,000. As per the approved funding pattern, 80% of the capital cost has to be funded by such type of interest and is shown under Current tax assets. equity, which works out to `4541,60,00,000. Out of this, ` 4314,52,00,000 has to be funded by DAE As per the requirements of Ind AS 109, outstanding and the balance ` 227,08,00,000 by NPCIL. The entire equity amount from DAE and NPCIL has been GOI loan of `1000,00,00,000 is stated at the received and spent. amortised cost of `1106,93,57,839 (Previous Year : `1064,98,36,283) The balance 20% of the Project cost (net of 35) BHAVINI carried forward an unspent amount of approximate interest earned / to be earned on `412,72,98,054 from 2016-17 (Previous year: short term deposits of unspent equity/ loan from `583,39,57,759). The company has received Rs.Nil time to time) is being met by way of GOI loan of (Previous Year : `400,00,000) as equity from GOI `1000,00,00,000. towards the pre project activities of FBR & 1&2 (PFBR- Nil). An amount of `207,20,31,013 (Previous The term of the loan will be ten years from the date year: `412,72,98,054) remained unutilized at the of drawing the respective installment of loan as per year end and has been retained in “Cash and cash following terms: equivalents” and “Short Term Bank Deposits”. An amount of `21,32,63,740 (Previous year: A) There will be moratorium on interest and `36,47,94,343) has been earned as interest from repayment of the principal for the first five years on the short-term deposits made during the year from the Government loan from the date of drawal of the the unspent amount. loan in respective instalment. Repayment of the principal after the moratorium period will be in 5 36) Ind AS 36: Impairment of Assets: equal instalments along with interest thereon. Since the Company is under project implementation stage and yet to commence its operations, the B) The rate of interest after the moratorium period requirement to determine the impairment of assets of five years and other terms and conditions of loan relating to CGU does not arise during this reporting will be as notified for investment loan by the Ministry period. of Finance. 37) Ind AS 10: Events after the reporting period: Regarding Ind AS 20: As per accounting for There are no events occurred after the Reporting Government Grants and Disclosure of Government period which requires accounting for, and disclosure Assistance, the moratorium on interest for the first of, such events after the reporting period. five years in respect of the loan received from the Government of India should be treated as 38) The company is awaiting for the terms of Government Grant. Accordingly, the amount of allotment regarding monthly rental for the `306,33,90,563 (Previous Year : `191,35,41,858) registered office space at chennai, from the consisting Govt. Grant `199,40,32,724 (Previous Department of Atomic Energy. Hence provision for Year ` 126,37,05,575) and Deferred rent has not been made in the books.

58 BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED NOTES TO FINANCIAL STATEMENTS AS AT 31st MARCH 2018 39) The company is using 2 Acres of leasehold land for which it has paid and provided `15,21,600 for the period 16.03.2011 to 31.03.2018 as lease rental in accordance with the registered lease agreement. 40) DAE, GOI has accorded administrative approval and financial sanction for setting up of 'Prototype Fast Breeder Reactor' at Kalpakkam at a cost of `3492,00,00,000 with a completion period as September 2010. The completion period was further extended as September 2014 with a revised project cost of `5677,00,00,000. The revised proposal to extend the completion period as March 2019 with revised project cost to `6100,00,00,000, has been submitted by the company to DAE, GOI for approval. 41) The company earns nominal rent from the sector shops located at the Township. The sector shops were constructed to facilitate the Employees to avail the basic facilities/amenities for living in the Township. The building (sector shops) was constructed for the welfare of employees and not for the purpose of Earning rent/capital appreciation. Accordingly these assets were grouped under PPE and not as Investment Property as per Ind AS 40. 42) Pre-Project activities for FBR 1 and 2 are being undertaken by the company. As separate man power has not been sanctioned for these activities, all indirect expenditures of these activities are considered under PFBR. 43) The Civil Liability for Nuclear Damage Act, 2010 lays down that every nuclear operator has to take out insurance policy or such other financial security or combination of both for rupees one thousand five hundred crores to cover the liability in case of a nuclear incident. This provision applies from the date of receipt of fuel. As BHAVINI has not received fuel as on the date of balance sheet, the financial security has not been created. 44) Figures of the previous year have been regrouped /rearranged wherever necessary to the extent feasible to make them comparable. 45) The above Notes (1 to 44) form part of these financial statements. For RAMESH & RAMACHANDRAN, For and on behalf of Chartered Accountants BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED (ICAI Regn. No: 02981S ) Sd/- Sd/- Sd/- Sd/- (CA.Y.Sridhar) (CS.V.Viswanathan) (V.Murugaiyan) (Dr. Kallol Roy) Partner Company Secretary Director(Finance) & Chairman & Membership No: 028149 Chief Financial Officer Managing Director PLACE : Kalpakkam DATE : 13th July 2018 COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENT OF BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED FOR THE YEAR ENDED 31st MARCH 2018.

The preparation of financial statements Bharatiya Nabhikiya Vidyut Nigam Limited for the year ended 31st March 2018 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the company. The statutory auditor/auditors appointed by the Comptroller and Auditor General of India under section 139 (5) of the Act is/are responsible for expressing opinion on the financial statements under section 143 of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have done by them vide their Audit Report dated 13th July 2018. I, on behalf the Comptroller and Auditor General of India, have conducted a supplementary audit of the financial statements of Bharatiya Nabhikiya Vidyut Nigam Limited for the year ended 31st March 2018 under section 143 (6) (a) of the Act. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primary to Inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records. On the basis of my supplement audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to statutory auditors’ report under section 143 (6) (b) of the Act. For and on Behalf of the Comptroller & Auditor General of India

Place : New Delhi Date : 05.09.2018

59 Panoramic View of PFBR