30th ANNUAL REPORT Public Disclosure Authorized 2017-18 Enriching Nation with Power and Water Security Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized • A world class energy entity with commitment to environment and social values. • To plan, develop and operate energy resources efficiently. • To adopt state of the art technologies. • To achieve performance excellence by fostering work ethos of learning and innovation. • To build sustainable value based relationship with stakeholders through mutual trust. • To undertake rehabilitation and resettlement of project affected persons with human face. th ANNUAL REPORT 30 2017-18 CONTENTS Corporate Overview Board of Directors ............................................................................................................. 4 Reference Information ...................................................................................................... 5 Key Financial Performance Highlights .............................................................................. 6 Chairman’s Speech ......................................................................................................... 12 Directors' Brief Profile ..................................................................................................... 15 Directors’ Report 2017-18 and Annexures Directors’ Report 2017-18 ............................................................................................... 18 Annexure-I Report on Corporate Governance ................................................................ 45 Annexure-II Corporate Social Responsibility Report ...................................................... 62 Annexure-III Management Discussion and Analysis Report ........................................... 75 Annexure-IV Energy Conservation Measures, Technology Adaptation, ......................... 80 Absorption and Foreign Exchange Earnings and Outgo Annexure-V Business Responsibility Report .................................................................. 83 Annexure-VI Form No. MGT-9 Extract of Annual Return .............................................. 101 Annexure-VII Secretarial Audit Report .......................................................................... 108 Financial Statements 2017-18 Significant Accounting Policies 2017-18 ....................................................................... 114 Balance Sheet ............................................................................................................... 123 Statement of Profit & Loss ............................................................................................ 125 Cash Flow Statement .................................................................................................... 127 Notes on Accounts ........................................................................................................ 130 Independent Auditor's Report on the Financial Statements ......................................... 165 Comments of the C&AG of India ................................................................................... 173 1 Corporate Overview ÜBoard of Directors ÜReference Information ÜKey Financial Performance Highlights ÜChairman’s Speech ÜDirectors' Brief Profile BOARD OF Shri D.V. Singh DIRECTORS Chairman & Managing Director As on 28th September, 2018 Shri Raj Pal Shri T. Venkatesh Shri H.L. Arora Economic Adviser, MoP, GoI Principal Secretary Director (Technical) Govt. Nominee Director (Irrigation & Water Resources), GoUP Govt. Nominee Director Shri Vijay Goel Shri Bachi Singh Rawat Shri Mohan Singh Rawat Director (Personnel) Independent Director Independent Director Prof. Maharaj K. Pandit Independent Director 4 th ANNUAL REPORT 30 2017-18 REFERENCE INFORMATION Registered Office Company Secretary & Compliance Officer THDC India Limited Mrs. Rashmi Sharma (A Joint Venture of Government of India & Government of U.P.) Ganga Bhawan, Pragatipuram, CIN:U45203UR1988GOI009822 By-Pass Road, Rishikesh-249201 Bhagirathi Bhawan (Top Terrace) Contact No. (0135) 2435842, 2439309 & 2437646 Bhagirathipuram, Tehri Garhwal – 249001 Fax: (0135) 2439442 & 2436761 Contact No. (0135) 2473403,2439309 Email: [email protected] Fax: (0135) 2439442 & 2436761 Website: www.thdc.co.in Corporate Office Registrar & Share Transfer Agent THDC India Limited Kar vy Computershare Private Limited Ganga Bhawan, Pragatipuram, By-Pass Road Karvy Selenium Tower – B, Plot 31-32, Gachibowli Rishikesh-249201. Financial District, Nanakramguda, Uttarakhand Hyderabad-500032 Tel: +91-40-33211000, Email: [email protected] Statutory Auditors Cost Auditors M/s P.D. Agrawal & Co. M/s S.C. Mohanty & Associates, New Delhi 364 A, Govindpuri, Haridwar-249403 M/s K.G. Goyal & Associates, New Delhi M/s K.B. Saxena & Associates, New Delhi Debenture Trustee Bonds Listed at VISTRA ITCL INDIA LIMITED National Stock Exchange of India Limited A-268, 1ST Floor, Bhishma Pitamah Marg, Bombay Stock Exchange Defence Colony, New Delhi-110024. Depositories Bankers/Financial Institutions Central Depository Service(India) Limited 1.Punjab National Bank Regd. Office: 17th Floor, P J Towers, 2.State Bank of India Dalal Street, Fort, Mumbai-400001. 3.World Bank 4.Jammu and Kashmir Bank National Securities Depository Limited 5. Power Finance Corporation of India Limited Trade World, A wing, 4th Floor, Kamala Mills Compound, 6. Rural Electrification Corporation of India Limited Lower Parel, Mumbai - 400013 Credit Rating Agency Secretarial Auditor CARE (Credit Analysis & Research Ltd) M/s P.S.R. Murthy India Ratings 178 RPS Flats, Sheik Sarai Phase-1, New Delhi-110017. 5 KEY FINANCIAL PERFORMANCE HIGHLIGHTS (Amount in ` lac) 2017-18 2016-17 2015-16 2014-15* 2013-14* A. Revenue 1 Revenue from Operations 219064 209474 246649 239716 217376 2 Other Income 3809 14123 1481 1077 862 3 Deferred Revenue on account of Irrigation Component 6822 4 Less: Depreciation on Irrigation Component 6822 5 TOTAL REVENUE 222873 223597 248130 240793 218238 B. Expenses 6 Employees Benefits Expense 30649 25425 22857 22438 18854 7 Generation, Administration & Other Expenses 20342 19513 18003 17855 15370 8 Tariff Adjustment (Regulatory Liability) 0 0 0 0 15192 9 Provisions 0 445 9 12638 0 10 Bad Debts written off 0 0 0 7801 0 11 Prior Period 13992 1076 12 Extraordinary items 554 16146 34830 13 TOTAL EXPENDITURE 51545 61529 75699 74724 50492 14 GROSS MARGIN(PBDIT) (5-13) 171328 162068 172431 166069 167746 15 Depreciation & Amortization 57452 52557 49663 48386 48122 16 GROSS PROFIT(PBIT) (14-15) 113876 109511 122768 117683 119624 17 Finance Cost 22787 29106 32887 43878 53027 18 Profit Before Tax (16-17) 91089 80405 89881 73805 66597 19 Income Tax 19056 17154 24252 18376 13985 20 Deferred Tax Asset -5083 -8142 -16269 -13686 -6920 21 Profit for the period from continuing 77116 71393 81898 69115 59532 operations (18-19-20) 22 Other Comprehensive income 563 -414 -301 23 Income Tax on OCI- Deferred Tax Assets 195 144 104 24 Profit After Tax (21+22+23) 77874 71123 81701 69115 59532 C. Assets 25 Tangible and Intangible Assets (Net Block) 732801 780687 752460 795672 843490 26 Capital Work In Progress 395027 303529 239099 167453 111712 27 Long term Loans and Advances 4483 4694 4702 41181 57702 28 Deferred Tax Assets (Net) 76219 70941 62655 45794 32108 29 Other Non- Current Assets 71547 93795 63999 143 162 30 Current Assets 159640 227149 232220 257434 190147 31 Total Assets 1439717 1480795 1355135 1307677 1235321 D. Liabilities 32 Equity Share Capital 362743 359888 355888 352888 347309 6 th ANNUAL REPORT 30 2017-18 Other Equity 33 Reserves and Surplus 488384 450193 415528 334405 282612 34 Contribution towards Irrigation Component 0 83458 89989 96538 103203 35 Total Other Equity 488384 533651 505517 430943 385815 36 Long Term Borrowings 241530 404185 349792 327566 307082 37 Other Long Term Liabilities and Provisions 135478 61395 54666 55340 45640 38 Short term Borrowings 64663 38724 3677 43634 63359 39 Current Maturity of Long Term Debts 101283 37503 38431 43436 52480 40 Other Current Liabilities 45636 45449 47164 53870 33636 41 Total Liabilities 1439717 1480795 1355135 1307677 1235321 - - - - - 42 Net Worth (32+33) 851127 810081 771416 687293 629921 43 Capital Employed (42+36-26) 697630 910737 882109 847406 825291 44 Dividend For the year 25610 22100 16200 14000 0 E Ratios Earning per share (Par value of ` 1000/- share) 215.24 198.85 230.52 197.60 172.88 Current Ratio [30 / (38+39+40)] 0.75 1.87 2.60 1.83 1.27 Debt to Equity (36+39 / 42) 0.40 0.55 0.50 0.54 0.57 Return On capital Employed 16.32% 12.02% 13.92% 13.89% 14.49% (PBIT/ Capital Employed) (16 / 43) Return on Net Worth (24/42) 9.15% 8.78% 10.59% 10.06% 9.45% Net Profit to Revenue from Operation (24/1) 35.55% 33.95% 33.12% 28.83% 27.39% Dividend Per Share(In `)(Share of ` 1000 each) 70.60 61.41 45.52 39.67 0.00 Note:1 * As per Previous GAAP 7 KEY FINANCIAL PERFORMANCE CHARTS 1400000 Amount in Lakh NET WORTH v/s BORROWINGS 1200000 8 3 8 1 3 6 8 2 1 2 1000000 2 4 2 4 8 4 0 3 2 8 0 Borrowings (Long Term 6 3 1 5 7 800000 9 Borrowings + Current Maturity 3 5 3 of Long Term Borrowing) 600000 Net Worth ( Share Capital + 7 1 2 6 8 Other Equity) 1 1 3 0 1 1 4 9 400000 0 2 5 1 2 1 9 8 7 7 8 9 7 8 2 6 200000 6 0 2017-18 2016-17 2015-16 2014-15 2013-14 300000 Amount in Lakh TOTAL REVENUE v/s NET PROFIT 250000 0 3 3 200000 9 3 1 7 7 7 8 0 9 8 4 4 5 2 2 8 2 3 2 3 2 2 TOTAL REVENUE 150000 2 2 8 1 2 PAT 100000 1 4 0 3 5 7 7 2 1 2 8 1 50000 1 1 3 7 8 1 9 5 7 7 6 9 5 0 2017-18 2016-17 2015-16 2014-15