Annual Report 2019-20 ANNEXURE -I THDC INDIA LIMITED ANNUAL REPORT 2019-2020 *Pictures will be changed as per designs finalised during designing and printing 1 |Directors’ Report Annual Report 2019-20 Table of Contents Corporate Overview Board of Directors Reference Information Key Financial Performance Highlights Chairman’s Speech Director’s Brief Profile Directors’ Report 2019-20 and Annexures Directors ‘Report 2019-20 Annexure-I Report on Corporate Governance Annexure-II Corporate Social Responsibility Report Annexure-III Management Discussion and Analysis Report Annexure-IV Energy conservation measures, Technology Adaptation, absorption and foreign exchange earnings and outgo Annexure-V Business Responsibility Report Annexure-VI Form No. MGT-9 Extract of Annual Return Annexure-VII Secretarial Audit Report Financial Statements 2019-20 Significant Accounting Policies2019-20 Balance Sheet Statement of Profit & Loss Cash Flow Statement Notes on Accounts Independent Auditors’ Report on the Financial Statement. Comments of the C&AG of India 2 |Directors’ Report Annual Report 2019-20 CORPORATE OVERVIEW BOARD OF DIRECTORS REFERENCE INFORMATION VISION AND MISSION KEY FINANCIAL PERFORMANCE HIGHLIGHTS CHAIRMAN’S SPEECH DIRECTOR’S BRIEF PROFILE 3 |Directors’ Report Annual Report 2019-20 BOARD OF DIRECTORS Shri D. V. Singh Chairman & Managing Director Shri Rajpal Shri T. Venkatesh Economic Adviser, MoP, Addnl. Chief Secretary, (Irrigation)Govt. Nominee Director GoUP. Nominee Director Shri Vijay Goel Shri J. Behera Shri R.K. Vishnoi Director (Personnel) Director (Finance) Director (Technical) Shri Anand Kumar Gupta Shri Ujjwal Kanti Bhattacharya Shri Anil Kumar Gautam Nominee Director Nominee Director Nominee Director NTPC Limited (till 31.07.2020) NTPC Limited NTPC Limited 4 |Directors’ Report Annual Report 2019-20 REFERENCE INFORMATION Registered Office Company Secretary & Compliance Officer THDC India Limited Mrs. Rashmi Sharma CIN:U45203UR1988GOI009822 Ganga Bhawan, Pragatipuram, Bhagirathi Bhawan (Top Terrace) By-Pass Road, Rishikesh- 249201 Bhagirathipuram, Tehri Garhwal – 249001 Contact No. (0135) 2439309 &2473403 Contact No. (0135) 2473403,2439309 Fax: (0135) 2439442 Fax: (0135) 2439442 & 2436761 Email: [email protected] Website: www.thdc.co.in /[email protected] Corporate Office Registrar & Share Transfer Agent THDC India Limited Karvy Computershare Private Limited Karvy Ganga Bhawan, Pragatipuram, By-Pass Road Selenium Tower – B, Plot 31-32, Gachibowl, Rishikesh-249201. Financial District, Nanakramguda, Uttarakhand Hyderabad-500032 Tel: +91-40-33211000, Email: [email protected] Statutory Auditors Cost Auditors M/s S.N Kapur & Associates. M/s K.G. Goel & Associates, New Delhi Ajay Seth,1 Maitri Vihar, Bypass Road, M/s K.B. Saxena & Associates, New Delhi Haridwar. M/s S.C. Mohanty & 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 Regd. Office: 17th Floor, P J Towers, Dalal 1. Punjab National Bank Street, Fort, Mumbai-400001. 2. State Bank of India 3. World Bank National Securities Depository Limited 4. Jammu and Kashmir Bank Trade World, A wing, 4th Floor, Kamala Mills 5. Power Finance Corporation of India Limited Compound, 6. Rural Electrification Corporation of India Lower Parel, Mumbai - 400013 Limited 7.Axis Bank Credit Rating Agencies Secretarial Auditor CARE (Credit Analysis & Research Ltd) M/s P.S.R. Murthy India Ratings & Research Pvt Limited 178 RPS Flats, Sheik Sarai Phase-1, New Delhi- ICRA Limited 110017. 5 |Directors’ Report Annual Report 2019-20 KEY FINANCIAL PERFORMANCE HIGHLIGHTS (Amount in lakh) 2019-20 2018-19* 2017-18 2016-17 2015-16 A. Revenue 1 Revenue from Operations 212310 244926 218510 209474 246649 2 Other Income 28226 39409 3809 14123 1481 3 Deferred Revenue on account of Irrigation 6374 6915 6822 Component 4 Less: Depreciation on Irrigation Component 6374 6915 6822 5 TOTAL REVENUE 240536 284335 222319 223597 248130 B. Expenses 6 Employees Benefits Expense 36030 41183 30649 25425 22857 7 Generation, Administration & Other Expenses 23933 20978 20342 19513 18003 8 Provisions 0 4985 0 445 9 9 Extraordinary items 16146 34830 10 TOTAL EXPENDITURE 59963 67146 50991 61529 75699 11 GROSS MARGIN(PBDIT) (5-10) 180573 217189 171328 162068 172431 12 Depreciation & Amortisation 57610 55500 57452 52557 49663 13 GROSS PROFIT(PBIT) (11-12) 122963 161689 113876 109511 122768 14 Finance Cost 24034 19954 22787 29106 32887 15 Profit before Tax and net movement in 98929 141735 91089 80405 89881 regulatory deferral account balance (13-14) 16 Income Tax 16312 30659 19056 17154 24252 17 Deferred Tax Asset -5302 -6676 -5083 -8142 -16269 18 Profit for the period before net movement in 87919 117752 77116 71393 81898 regulatory deferral account balances (15- 16-17) 19 Net Movement in Regulatory Deferral Account 4106 1239 Balance Income/ (Expense) 20 Profit for the period from contnuing 92025 118991 77116 71393 81898 operations (18+19) 21 Other Comprehensive income -1247 -299 563 -414 -301 22 Income Tax on OCI- Deferred Tax Assets/ -435 -104 195 144 104 Liability 23 Total Comprehensive Income (20+21+22) 90343 118588 77874 71123 81701 C. Assets 24 Tangible and Intangible Assets (Net Block) 659219 683099 732801 780687 752460 25 Capital Work In Progress 498980 454434 395027 303529 239099 26 Right of Use Assets 38071 27 Long term Loans and Advances 3890 4079 4483 4694 4702 28 Deferred Tax Assets (Net) 93971 89104 82532 70941 62655 6 |Directors’ Report Annual Report 2019-20 29 Non Current Tax Assets (Net) 2455 6785 30 Other Non- Current Assets 158289 120942 71547 93795 63999 31 Current Assets 281365 190559 159640 227149 232220 32 Regulatory Deferral Account Debit Balance 18622 8781 33 Total Assets 1754862 1557783 1446030 1480795 1355135 D. Liabilities 34 Equity Share Capital 366588 365488 362743 359888 355888 Other Equity 35 Reserves and Surplus 586659 511906 488384 450193 415528 36 Contribution towards Irrigation Component 0 0 0 83458 89989 37 Total Other Equity 586659 511906 488384 533651 505517 38 Long Term Borrowings 395696 265201 241530 404185 349792 39 Other Long Term Liabilities and Provisions 120968 132517 135478 61395 54666 40 Short term Borrowings 111506 121840 64663 38724 3677 41 Current Maturity of Long Term Debt 60077 54437 101283 37503 38431 42 Other Current Liabilities 51505 49397 45636 45449 47164 43 Regulatory Deferral Account Credit Balance 61863 56997 6313 44 Total Liabilities 1754862 1557783 1446030 1480795 1355135 - - - - - 45 Net Worth ( 34+35) 953247 877394 851127 810081 771416 46 Capital Employed ( 45+38-25) 849963 688161 697630 910737 882109 47 Dividend For the year 12600 42312 33521 30389 14000 48 Value added (11) 180573 217189 171328 162068 172431 49 Number of Employees 1835 1891 1922 1936 1990 50 Number of share (in Lakh) (Par value of Rs. 1000/- share) 366.59 365.49 362.74 359.89 355.89 E Ratios Earning per share including net movement in regulatory deferral account balance (Par value 251.22 326.35 213.14 198.85 230.52 of Rs. 1000/- share) (in ₹) Current Ratio [31 / (40+41+42)] 1.26 0.84 0.75 1.87 2.60 Debt to Equity ((38+41) / 45) 0.48 0.36 0.40 0.55 0.50 Return On capital Employed (PBIT/ Capital 14.47% 23.50% 16.32% 12.02% 13.92% Employed) (13 / 46) Return on Net Worth (23 / 45) 9.48% 13.52% 9.15% 8.78% 10.59% Net Profit to Revenue from Operations (23 / 1) 42.55% 48.42% 35.64% 33.95% 33.12% Book value per share (in ₹) (45/50) 2600.32 2400.61 2346.36 2250.93 2167.58 Value added per employee ( ₹ in Lakh) (48/49) 98.40 114.85 89.14 83.71 86.65 Dividend Per Share (in ₹) (Share of ₹1000/- 34.37 115.77 92.41 84.44 39.34 each) F Operating Performance Generation (M.U.) 4526.85 4687.18 4540.94 4430.00 4348.29 * Data is on the basis of restated financial statements. 7 |Directors’ Report Annual Report 2019-20 KEY FINANCIAL PERFORMANCE CHARTS NET WORTH v/s BORROWINGS 1600000 Amount in La kh NET WORTH v/s BORROWINGS 1400000 1200000 455773 1000000 Borrowings (Long Term Borrowings + 319638 441688 342813 Current Maturity of Long Term 388223 800000 Borrowing) Net Worth ( Share Capital + Other 600000 Equity) 400000 953247 877394 851127 810081 771416 200000 0 2019-20 2018-19 2017-18 2016-17 2015-16 TOTAL REVENUE v/s TOTAL COMPREHENSIVE 300000 Amount in Lakh TOTAL REVENUE v/s TOTAL COMPREHENSIVE 250000 INCOME 200000 TOTAL REVENUE 284335 240536 150000 248130 223597 222319 Total comprehensive income 100000 50000 118588 90343 81701 77874 71123 0 2019-20 2018-19 2017-18 2016-17 2015-16 8 |Directors’ Report Annual Report 2019-20 DIVIDEND PAYOUT 14 12 10 8 11.58 % Dividend to Share Capital 6 8.44 9.24 4 2 3.93 3.44 0 2019-20 2018-19 2017-18 2016-17 2015-16 Wind Power & Consultancy BREAK UP OF REVENUE 6% Koteshwar HPP 30% Tehri HPP 64% 9 |Directors’ Report Annual Report 2019-20 DISTRIBUTION OF REVENUE Employees Total Benefits Comprehensive Expense Generation, Income 15% Admnistration & 37% Other Expenses 10% Depreciation & Amortisation Finance Cost 23% 10% Income Tax 5% 10 |Directors’ Report Annual Report 2019-20 CHAIRMAN’S ADDRESS Dear Members, I feel privileged and it gives immense pleasure to welcome you all to 32nd Annual General Meeting of your Company, and to present Report of the Auditor's and Director's Report for the year 2019-20 along with Annual Audited Accounts. I would now seek your permission to take them as read. As per directions of GoI, NTPC signed the share purchase agreement to buy the entire 74.496% stake of Govt. of India in THDCIL on 25th March-20 and acquisition of stake completed on 27th March-20. However management control of the Company remains with and through Ministry of Power only.