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Notes to Accounts of India Power Corporation Ltd.

Mar 31, 2015

1. AMALGAMATION OF INDIA POWER CORPORATION LIMITED

Pursuant to the Scheme of Arrangement and Amalgamation ('the scheme') sanctioned by the Hon'ble High Court at Calcutta vide its order dated 17th April, 2013, erstwhile India Power Corporation Limited (IPCL), has been amalgamated with the Company with effect from 1st October, 2011 (the appointed date). The scheme was therefore given effect to in the financial Statements for the year ended 31st March, 2013.

a. Consequent to the amalgamation as above:

The shareholders of erstwhile IPCL (the Transferor Company) are entitled to 11 equity shares of the Company (the Transferee Company) against every 100 equity shares held by them. Accordingly 1,12,02,75,823 equity shares of Rs. 1 each of the Company aggregating to Rs. 11,202.75 lakhs are to be issued to the shareholders of erstwhile IPCL. Erstwhile IPCL being the Amalgamating / Transferor Company, its shareholding of 51,61,32,374 equity shares of Rs.1 each aggregating to Rs. 5,161.32 lakhs in the Company shall stand cancelled in terms of the scheme approved by the High Court leaving 14,90,87,194 equity shares of Rs. 1 each out of the shares currently held by them, which will be transferred to Power Trust in terms of the said scheme. The above referred allotment and cancellation, pursuant to the scheme, have not been given effect to, in view of the order passed by SEBI relating to Minimum Public Shareholding requirement. The matter is presently pending before the Hon'ble High Court at Calcutta and therefore a net amount of Rs. 6,041.43 lakhs, being the differential amount with respect to the equity shares to be issued and to be cancelled has continued to be shown as share capital suspense account.

b. In terms of the scheme, the Reserves arising pursuant to amalgamation shall constitute free reserves available to the Amalgamated Company for such purpose including but not limited to declaration of dividend, issuance of Bonus shares etc. as the Board of Directors of the Amalgamated Company may consider appropriate. Accordingly as per the Board resolution, the reserve of Rs. 20,079.84 lakhs arising on amalgamation has been shown under the General Reserve of the Company.

c. Pursuant to the Scheme, the name of the Company has been changed to India Power Corporation Limited with effect from 27th August, 2013.

d. WBERC is yet to give effect to the said scheme and the matter is presently pending before Hon'ble High Court at Calcutta.

2. SHARE CAPITAL

a. The Company has only one class of equity shares having a par value of Rs. 1 each. The Board of Directors have proposed dividend of Rs. 0.05 per equity share including shares to be issued pursuant to scheme of amalgamation as referred to in Note 2.1. Each share has one voting right. The dividend proposed by the Board of Directors is subject to approval of shareholders in the Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

b. There is no movement in the number of shares outstanding and the amount of Share Capital as at 31st March, 2015 and 31st March, 2014.

c. During the financial year 2011-12, fully paid Bonus shares in the ratio of 22 (twenty two) equity shares of Rs. 1 each for every 1 (one) equity share of Rs. 1 each were issued and allotted on 20th December, 2011.

d The above disclosures, are without giving effect to the further issue and cancellation of equity shares pursuant to the scheme of amalgamation as given in Note 2.1.

3. Based on expert opinion obtained, considering that capital contribution from consumers toward service lines are not refundable to the consumers even after they cease to be consumers and the underlying assets there against being under notional ownership of the Company, such contribution are being transferred to Capital Reserve.

4. Contingencies Reserve created out of the profit of each year till the year ended 31st March, 2004 in accordance with the provisions of the Sixth Schedule to the erstwhile Electricity (Supply) Act, 1948, being no longer required has been transferred to General Reserve.

5. Reserve for unforeseen exigencies and Unforeseen Exigencies Interest Reserve has been created in terms of tariff regulations.

6. Capital reserve arising consequent to the amalgamation of Associated Power Company Limited with the Company in the year 1978 has been shown as Other Capital Reserve.

7. In terms of Shareholders' resolution for the respective year, dividend of Rs. 180.51 Lakhs (including income tax of Rs. 26.22 lakhs), out of total proposed dividend of Rs. 923.05 Lakhs (including income tax Rs. 134.08 lakhs) was approved. Accordingly the remaining amount of Rs. 742.54 lakhs (including income tax of Rs. 107.86 lakhs thereon) has been written back.

8. General Reserve include Rs. 56,887.09 lakhs being General reserve of amalgamating company in terms of scheme dealt with in Note 2.

9. (a) Includes 10.75% Secured Redeemable Non Convertible Debentures aggregating to Rs.10000 lakhs redeemable in five instalments at the end of 6th, 7th, 8th, 9th and 10th year from the date of allotment i.e. 3rd November, 2010 and is secured by mortgage of immovable properties consisting of 1.0749 acres of land and all the buildings including all structure, there on, fixed plant and machinery, furniture & fittings, present and future at Plot X1-3, Block EP, Salt lake, Kolkata and land, building, office, bungalow and guesthouse at Sanctoria and Asanboni at Asansol (Burdwan) and 1731.82 sq. mtr. land at Iswarpura (Gujarat)

(b) Includes 12% Secured Redeemable Non Convertible Debentures aggregating to Rs. 2000 lakhs redeemable in five instalments at the end of 6th, 7th, 8th, 9th and 10th year from the date of allotment i.e. 19th September, 2012 and is secured by mortgage of immovable properties consisting of land measuring 20.74 acres and building at Kaithi and Seebpore Mouza at Burdwan District including Bungalow, Quarters, Offices etc at Luchipur Receiving Station area of 56,633.94 sqft under Seebpore circle.

10. (a) Includes Term loan of Rs. 3555.56 lakhs (Rs. 4000 lakhs as at 31st March, 2014) at bank base rate plus 2.5% and is repayable after moratorium of two years from 1st April, 2012 in 9 years in thirty six equal quarterly instalments and is secured by exclusive charge on assets of 1x12 MW plant project and immovable property consisting of Land of 20.10 acres at Dishergarh, District Burdwan.

(b) Includes Term Loan of Rs. 7493 lakhs (Rs. 5000 lakhs as at 31st March, 2014) at bank base rate plus 2.5% and is repayable in 9 years from 1st December 2015 in equal quarterly instalments and is secured by exclusive charge of entire fixed assets pertaining to 220/33 kV sub-station at J.K Nagar, Burdwan, both present and future.

(c) Includes Term Loan of Rs. 3999.99 lakhs (Rs. 4734.17 lakhs as at 31st March, 2014) at bank base rate plus 0.75% and is repayable in nine quarterly instalment of Rs. 500 lakhs each with effect from 30th January, 2015 with annual put and call option and is secured by hypothecation by way of exclusive first charge on certain movable fixed assets of 29 kV Dishergarh Distribution network and 11 kV Seebpore distribution network.

(d) Includes Term loan Rs. 16.84 lakhs (Rs. 43.47 lakhs as at 31st March, 2014) at the rate of 10.25% repayable in 35 monthly instalments of Rs. 2.49 lakhs each and is secured against asset purchased out of the loan.

11. (a) Term loan of Rs. 7000 lakhs (Rs. 6000 lakhs as on 31st March, 2014) at the rate of 13.50% repayable after five years from the date of disbursement i.e. 22nd May, 2013 and is to be secured by Equitable Mortgage of land measuring 155.50 acres located at Raybandh Village, Raghunathpur Town, District Purulia, West Bengal and movable fixed assets of the project.

(b) Term Loan of Rs. 8000 lakhs at the rate of 13.50% repayable after five years from the date of disbursement i.e. 15th October, 2014 and is to be secured by parri passu charge on movable fixed asset of 270 MW thermal Plant and land measuring 155.50 acres at Raghunathpur, District Purulia, West Bengal and residual charge on assets excluding the assets having exclusive charge to other lenders.

12. (a) Includes Rs. 470.76 lakhs (previous year Rs. 4411.31 lakhs) secured by first pari passu charge on current assets both present and future and to be secured by second pari-passu charge on fixed assets of the Company charged on Axis Trustee Services Limited for NCD holders of Rs. 100 crore.

(b) Includes Rs. 2164.92 lakhs (previous year Rs. 1312.32 lakhs) secured by first charge, ranking pari passu on current assets both present and future and second pari-passu charge on fixed assets of the Company charged on Axis Trustee Services Limited for NCD holders of Rs. 100 crore.

(c) Include Rs. 130.39 lakhs (previous year Rs. 1302.58 lakhs) secured by first pari passu charge on current assets both present and future.

(d) Include Rs. 62.59 lakhs (previous year Rs. 386.06 lakhs) secured by first pari passu charge on current assets both present and future and exclusive charge on certain movable fixed assets of Dhasal sub-station.

13.(a) Includes Rs. 5000 lakhs (previous year Rs. Nil) towards working capital demand loan, repayable after 6 months from disbursement i.e. 02.01.2015 and is secured by first parri passu charge on entire current assets of the Company both present & future and second pari-passu charge on fixed assets of the Company charged to Axis Trustee Services Limited for NCD holders of Rs. 100 crore.

(b) Includes Rs. 3500 lakhs (previous year Rs. Nil) towards working capital demand loan repayable after 92 days from disbursement i.e. 24.3.2015 and is secured by first parri passu charge on entire current assets of the Company.

14. Overdraft of Rs. 454.40 lakhs (previous year Rs. Nil) is secured by lien on fixed deposit of Rs. 500 lakhs of IPCL Power Trading Private Limited, a Subsidiary of the Company.

15. Dues to Micro Small and Medium Enterprise

The details of amount outstanding to micro enterprise and small enterprises are based on information available with the Company. Based on above, the relevant disclosures under section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 are as follows:

16. Unclaimed dividend does not include any amount due and outstanding to be credited to Investor Education and Protection Fund.

17. Represents advance given to India Power Corporation (Haldia) Limited, a Subsidiary Company as Contribution towards project equity.

18. The Company has recognised Entitlement for MAT Credit based on convincing evidence that the Company is expected to pay normal tax within the credit entitlement period.

19. Beneficial interest in Power Trust represents Net Book Value of the Investments and liabilities pertaining to Investment Division of erstwhile IPCL transferred pursuant to the scheme dealt with in Note 2. In terms of the valuation of an Independent firm of Chartered Accountants, underlying values thereof are not less than the value at which these have been carried and stated in the financial statements and as such no adjustment in this respect has been considered necessary.

20. Includes Rs. 267.45 lakhs (previous year Rs. 351.45 lakhs) kept as Margin Money with bank and Rs. 400.69 lakhs (previous year Rs. 388.29 lakhs) kept with bank as lien against repayment of term loans.

21. Sale of energy include Monthly Variable Cost Adjustment (MVCA) of Rs. 2248.58 lakhs and Fuel Purchase and Power Cost Adjustment (FPPCA) of Rs. 1 153.97 lakhs for the year based on norms and estimations as per the applicable Tariff Regulations. From the current year, the Company is entitled to incentive for reliability in power supply and accordingly Rs. 1219 lakhs have been recognised as income in this respect. Income tax amounting to Rs. 979.82 lakhs to the extent assessed / paid in respect of earlier years and considered recoverable in future as per Tariff Regulation have also been recognised. Adjustments in these respects are carried out and given effect to from time to time based on the order of West Bengal Electricity Regulatory Commission or directions from appropriate authorities.

22. Effective 2006-07 power purchased from Damodar Valley Corporation (DVC) is accounted for on the basis of tariff rates (including fuel cost adjustments) charged by DVC on a provisional basis. Pending issuance of revised tariff order by the Hon'ble Central Electricity Regulatory Commission (CERC) for the years 2006-07 to 2008-09, in terms of the directions issued by the Hon'ble Appellate Tribunal for Electricity (ATE). The Tariff fixed by CERC and the directions issued by the Hon'ble ATE has been challenged by DVC before the Hon'ble Supreme Court of India. Tariff orders for subsequent years from respective regulatory authorities are yet to be issued. Consequential adjustment in this respect will be given effect to on ascertainment of amount thereof.

23. Includes Rs. 26.15 lakhs, expenditure incurred towards Corporate Social Responsibility.

24. Contingent liabilities and commitments (to the extent not provided for) (Rs. in lakhs)

Particulars Note No. 31st March, 31st March, 2015 2014 A. Contingent Liabilities

a) Demand from Sales tax authorities 8.86 37.45 against which Company's appeal is pending b) Other demand against which - 165.38 Company's appeal is pending

c) Performance Bank Guarantee 29.1.3 1,329.00 1,595.00

d) Standby Letter of Credit 29.1.3 934.00 934.00

e) Unexpired Letter of Credit 410.00 880.00

Total 2,681.86 3,611.83

B. The Company's pending litigations comprises of claim against the Company and proceedings pending with tax/ statutory/ Government Authorities. The Company has reviewed all its pending litigation and proceedings and has made adequate provisions, and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position. Future cash outflows in respect of 29.1.1(a) and (b) above are determinable only on receipt of judgement/ decisions pending with various forums/ authorities.

C. Given in terms of Distribution Franchise Agreement (DFA) for Distribution of electricity which is being carried on by India Power Corporation (Bodhgaya) Ltd.

D. Commitment

a. Estimated amount of contracts remaining 286.55 635.44 to be executed on capital account and not provided for (net of advances of Rs. 163.55 lakhs, previous year Rs. 1033.28 lakhs)

b. Other Commitment

To subscribe to Compulsorily - 4,517.23 Convertible Preference Shares of India Power Corporation (Haldia) Ltd. (previous year net of advance of Rs. 537 lakhs)

Total 286.55 5,152.67

25. During the year, J.K.Nagar distribution lines have been capitalised on completion and commissioning at the close of the year.

26. (a) Net block of fixed assets as on 31st March, 2015 include Rs. 1757.06 lakhs and Stores and Spares include Rs. 387.39 lakhs, being assets lying in the leased premises at Chinakuri Power Station which was under operating lease from Eastern Coalfields Limited (ECL).

(b) The lease with ECL has expired on 31st March, 2012 and in terms of lease agreement, ECL is required to take over all the assets at respective Written Down Value as on the date of termination of lease. The Company's claim/ counter claim of Rs. 56053 lakhs from ECL with respect to above and ECL's claim of Rs. 23536 lakhs against the Company in this respect are under arbitration pursuant to the order of Hon'ble Supreme Court of India.

27. (i) In the Capacity of Lessee

Certain premises and wind turbine generator are obtained on operating lease. The term for premises is 1-3 years and is renewable as per mutual agreement.

a) The Company has not made any sublease arrangement with other parties.

b) The Company has recognised an amount of Rs. 6070.28 lakhs (previous year Rs. 6279.13 lakhs) towards lease rent (Note 25) and Rs. 3.68 lakhs (previous year Rs. 4.32 lakhs) for rent of premises (Note 28) for the year.

c) Significant features of aforesaid lease arrangements are as follows:

i) The Company will pay the fixed lease rent over the lease period . There is no contingent lease rent except for wind mill at Rajasthan where in lease rent is contingent on revenue receipt.

ii) Upon the expiry of the lease period by efflux of time, the lessor, may agree to have the lease renewed for a secondary lease period.

iii) There are no restrictions imposed on the Company by the existing lease agreements.

28.(i) In the Capacity of Lessor

Further, the Company also has certain non-cancellable operating lease arrangements for office premises, which covers for a period of 5 years and are usually renewable by mutual consent on mutually agreeable terms. In respect of such arrangements, lease earning for the year aggregating to Rs. 8.70 lakhs (previous year Rs. 8.70 lakhs) have been recognised in the Statement of Profit and Loss.

29. Related Party Disclosures

Related parties have been identified in terms of Accounting Standard 18 on "Related Party Disclosure" as listed below : List of Related Parties where control exists

Name of the Related Party Relationship

India Power Corporation (Bodhgaya) Subsidiary (with effect from Limited 12th September, 2013)

IPCL Pte Ltd. Subsidiary (with effect from 4th October, 2013)

IPCL Power Trading Pvt. Limited Subsidiary (with effect from 3rd September 2014)

Key Management Personnel Relationship

Shri Asok Kumar Goswami Whole time Director (from 15th September, 2014)

Shri Jyotirmay Bhaumik Chief Executive Officer (upto 30th April, 2013)

Shri Siddhartha Ratilal Mehta Chief Executive Officer (upto 30th November, 2014)

Relative of Key Management Personnel Ms. Aditi Mehta Daughter of Shri Siddhartha Ratilal Mehta

30. Employee Benefits

Gratuity (Funded)

The Company's gratuity scheme, a defined benefit plan, covers the eligible employees and is administered through a gratuity fund trust. Such gratuity fund, whose investments are managed by Life Insurance Corporation of India (LICI), make payments to vested employees on their cessation of employment, death or incapacitation of an amount based on the respective employee's salary and tenure of employment subject to a maximum limit of Rs. 10.00 lakhs. Vesting occurs upon completion of five years of service.

Superannuation (Funded)

The Company's superannuation scheme, a defined benefit plan, covers certain category of employees and is administered through a trust fund. Investments of the fund are managed by LICI. Upon retirement, death or cessation of employment Superannuation Fund purchases annuity policies in favour of vested employees or their spouses to secure periodic pension. Such superannuation benefits are based on respective employee's tenure of employment and salary.

Post retirement Benefit (Unfunded)

Till the previous year the Company had a scheme for domiciliary treatment for its certain category of retired employees till death and their surviving spouses up to an annual maximum limit. With effect from 1st April, 2013 the scheme has been discontinued and accordingly, provision of Rs. 65.18 lakhs there against has been written back and adjusted to Employee Benefit expenses (Note 26).

Lump sum payment (Unfunded)

The Company has a defined benefit plan which covers certain categories of employees for providing a lump sum amount at various scales to the vested employee or his nominee upon retirement, death or cessation of service based on tenure of employment. Vesting occurs upon completion of 20 years of service.

31. The contribution to the defined benefit plans expected to be made by the Company during the annual period beginning after the Balance Sheet date is yet to be reasonably determined.

32. During the year Rs. 282.00. lakhs has been recognised as expenditure towards Defined Contribution Plans of the Company (previous year Rs. 274.92 lakhs)

33. The business of the Company falls within a single primary segment viz, "Generation and Distribution of Power in India"and hence segment information in terms of Accounting Standard (AS) 17 "Segment Reporting" is not applicable .

34. Figures pertaining to the previous year have been rearranged/regrouped, reclassified and restated, wherever necessary to make them comparable with those of current year.


Mar 31, 2014

1 AMALGAMATION OF INDIA POWER CORPORATION LIMITED

Pursuant to the scheme of arrangement and amalgamation (''the scheme'') sanctioned by the Hon''ble High Court at Calcutta vide its order dated 17th April, 2013, erstwhile India Power Corporation Limited (IPCL), has been amalgamated with the Company with effect from 1st October, 2011 (the appointed date). The scheme has therefore been given effect to in the financial Statements for the year ended 31st March, 2013.

2.1 Consequent to the amalgamation as above:

The shareholders of erstwhile IPCL (the Transferor Company) are entitled to 11 equity shares of the Company (the Transferee Company) against every 100 equity shares held by them. Accordingly 1,12,02,75,823 equity shares of Rs.1 each of the Company aggregating to Rs.11,202.75 lakhs are to be issued to the shareholders of erstwhile IPCL. Erstwhile IPCL being the Amalgamating / Transferor Company, its shareholding of 51,61,32,374 equity shares of Rs.1 each aggregating to Rs.5,161.32 lakhs in the Company shall stand cancelled in terms of the scheme approved by the High Court. The above referred allotment and cancellation, pursuant to the scheme, have not been given effect to, in view of the order passed by SEBI relating to Minimum Public Shareholding requirement. The matter is presently pending before the Hon''ble High Court at Calcutta and therefore a net amount of Rs.6,041.43 lakhs, being the differential amount with respect to the equity shares to be issued and to be cancelled has continued to be shown as share capital suspense account.

2.2 In terms of the scheme, the Reserves arising pursuant to amalgamation shall constitute free reserves available to the Amalgamated Company for such purpose including but not limited to declaration of dividend, issuance of Bonus shares etc. as the Board of Directors of the Amalgamated Company may consider appropriate. Accordingly as per the Board resolution, the reserve of Rs.20,079.84 lakhs arising on amalgamation has been shown under the General Reserve of the Company.

2.3 Pursuant to the Scheme, the name of the Company has been changed to India Power Corporation Limited with effect from 27th August, 2013.

2.4 Pursuant to sanction of scheme, title deeds, conveyance and other legal documents of the amalgamating company are in the process of being transferred in the name of the Amalgamated Company.

3.1 The Company has only one class of equity shares having a par value of Rs.1 each. The Board of Directors have proposed dividend of Rs.0.05 per equity share including shares to be issued pursuant to scheme of amalgamation as referred to in note 2.1. Each share has one voting right. The dividend proposed by the Board of Directors is subject to approval of share holders in the Annual General Meeting. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

3.2 There is no movement in the number of shares outstanding and the amount of Share Capital as at 31st March, 2014 and 31st March, 2013.

3.2.1 During the financial year 2011-12 fully paid Bonus shares in the ratio of 22 (twenty two) equity shares of Rs.1 each for every 1 (one) equity share of Rs.1 each were issued and allotted on 20th December, 2011.

3.4 The above disclosures, are without giving effect to the further issue and cancellation of equity shares pursuant to the scheme of amalgamation as given in note 2.1.

4.1 Based on expert opinion obtained, considering that capital contribution from consumers toward service lines are not refundable to the consumers even after they cease to be consumers and the underlying assets there against being under notional ownership of the Company, such contribution are being transferred to Capital Reserve.

4.2 Contingencies Reserve was created by appropriation out of revenue of each year till the year ended 31st March, 2004 in accordance with the provisions of the Sixth Schedule to the erstwhile Electricity (Supply) Act, 1948. Further to these, reserve for unforeseen exigencies have been created in terms of tariff regulations.

4.3 Capital reserve arising consequent to the amalgamation of Associated Power Company Limited with the Company in the year 1978 has been shown as other capital reserve.

4.4 In terms of Shareholders'' resolution dated 16th August, 2013, for the year ended 31st March, 2013, dividend of Rs.154.30 Lakhs (including income tax of Rs.26.22 lakhs), out of total proposed dividend of Rs.923.05 Lakhs (including income tax Rs.134.08 lakhs) was approved. Accordingly, dividend and tax thereon not approved has been written back.

4.5 General Reserve include Rs.56,887.09 lakhs being General Reserve of amalgamating company in terms of scheme dealt with in Note 2.

5.1 (a) Includes 10.75% Secured Redeemable Non Convertible Debentures aggregating to Rs.10000 lakhs redeemable in five installments at the end of 6th, 7th, 8th, 9th and 10th year from the date of allotment i.e. 3rd November, 2010 and is secured by mortgage of immovable properties consisting of 1.0749 acres of land and four storied building measuring 1190 sq. mtr. along with conference hall measuring 359 sq. mtr. at Plot X-1, 2&3, Block EP, Salt Lake, Kolkata and land, building, office, bungalow and guesthouse at Sanctoria and Asanboni at Asansol (Burdwan) and 1731.82 sq. mtr. land at Iswarpura (Gujarat).

5.1 (b) Includes 12% Secured Redeemable Non Convertible Debentures aggregating to Rs.2000 lakhs redeemable in five installments at

the end of 6th, 7th, 8th, 9th and 10th year from the date of allotment i.e. 19th September, 2012 and is secured by mortgage of immovable properties consisting of land measuring 20.74 acres and building at Kaithi and Seebpore Mouza at Burdwan District including bungalow, quarters, offices etc at Luchipur Receiving Station area of 56,633.94 sq. ft. under Seebpore circle.

5.2 (a) Includes Term loan of Rs.4000 lakhs (Rs.3500 lakhs as at 31st March, 2013) at bank base rate plus 2.5% and is repayable after

moratorium of two years from 1st April, 2012 in 9 years in equal quarterly installments and is secured by mortgage of assets of 1x12 MW plant project and immovable property consisting of Land of 20.10 acres at Dishergarh, District Burdwan.

5.2 (b) Includes Term Loan of Rs.5000 lakhs (Rs.5000 lakhs as at 31st March, 2013) at bank base rate plus 2.5% and is repayable after moratorium of two years in 9 years from the date of disbursement i.e. 29th December, 2012 in equal quarterly installments and is secured by exclusive charge of entire fixed assets pertaining to 220/33 kv sub-station at J.K Nagar, Burdwan, both pesent and future.

5.2 (c) Includes Term Loan of Rs.4734.17 lakhs (Rs. nil as at 31st March, 2013) at bank base rate plus 0.75% and is repayable after moratorium of six months from the date of disbursement i.e 30th January, 2014 in equal quarterly installment and is secured by hypothecation by way of exclusive first charge on certain movable fixed assets of 29 kv Dishergarh distribution network and 11 kv Seebpore distribution network.

5.2 (d) Includes Term loan Rs.43.47 lakhs (Rs.65.05 lakhs as at 31st March, 2013) at the rate of 13% repayable in 35 monthly installments

of Rs.2.49 lacs each and is secured against asset purchased out of the loan

5.3 Term loan of Rs.6000 lakhs @ 13.50% repayable after five years from the date of disbursement i.e 22nd May, 2013 and is to be secured by equitable mortgage of land measuring 155.50 acres located at Raybandh Village, Raghunathpur Town, District Purulia, West Bengal and movable fixed assets of the project.

9.1 Cash Credit of Rs.4411.31 lakhs (previous year Rs.2299.95 lakhs) from South Indian Bank is secured by first pari passu charge on current assets both present and future.

9.2 Cash Credit of Rs.1312.32 lakhs (previous year Rs.888.14 lakhs) from IDBI Bank is secured by first charge, ranking pari passu on current assets both present and future and second charge on immovable property consisting of 35.50 acres of land at Asansol and 1.0749 acres of land at Plot X-1, 2&3, Block EP, Salt Lake, Kolkata.

9.3 Cash Credit of Rs.1302.58 lakhs (previous year Rs. Nil) from Ratnakar Bank is secured by first pari passu charge on current assets both present and future.

9.4 Cash Credit of Rs.386.06 lakhs (previous year Rs. Nil) from Axis Bank is secured by first pari passu charge on current assets both present and future and second pari passu charge by way of hypothecation of fixed assets of the Company, both present and future.

10.1 Dues to Micro Small and Medium Enterprise

The details of amount outstanding to micro enterprise and small enterprises are based on information available with the Company. Based on above, the relevant disclosures under section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 are as

* Advance to employees pursuant to normal business practice and employee welfare

15.2 The Company has recognised Entitlement for MAT Credit of Rs.1481.29 lakhs including Rs.490.14 lakhs for the year, (Previous year Rs.806.36 lakhs) based on convincing evidence that the Company is expected to pay normal tax within the credit entitlement period.

16.1 Beneficial interest in Power Trust represents Net Book Value of the Investments and liabilities pertaining to Investment division of erstwhile IPCL transferred pursuant to the scheme dealt with in Note 2. In terms of the valuation of an Independent firm of Chartered Accountants, underlying values thereof are not less than the value at which these have been carried and stated in the financial statements and as such no adjustment in this respect has been considered necessary.

22.1(a) Sale of energy include Monthly Variable Cost Adjustment (MVCA) of Rs.3458.29 lakhs and Fuel Purchase and Power Cost Adjustment (FPPCA) of Rs.6.91 lakhs for the year on the basis of formulae prescribed under the applicable Tariff Regulations, and is inclusive of Rs.340.02 lakhs provisionally receivable from consumers on account of under recovery of fixed costs. Adjustments in these respects are carried out and given effect to from time to time based on the order of West Bengal Electricity Regulatory Commission or directions from appropriate authorities.

22.1(b) Sale of energy include Rs.718.34 lakhs for the year 2010-11 and 2011-12 being impact of Annual Performance Review and Fuel Purchase and Power Cost Adjustment orders of WBERC and Tribunal and Rs.1206 lakhs on account of certain claims pertaining to earlier years based on Electricity Appellate Tribunal order pending reassessment by WBERC.

24.2 Effective 2004-05 power purchased from Damodar Valley Corporation (DVC) is accounted for on the basis of tariff rates (including fuel cost adjustments) charged by DVC on a provisional basis pending issuance of revised tariff order by the Hon''ble Central Electricity Regulatory Commission (CERC) for the years 2004-05 to 2013-14, in terms of the directions issued by the Hon''ble Appellate Tribunal for Electricity (ATE). The Tariff fixed by CERC and the directions issued by the Hon''ble ATE has been challenged by DVC before the Hon''ble Supreme Court of India.

29.1 Contingent liabilities and commitments (to the extent not provided for)

(Rs in lakhs) Particulars Note No. 31st March,31st March, 2014 2013

29.1.1 Contingent Liabilities

a) Demand from Sales tax authorities against which Company''s 37.45 37.45 appeal is pending

b) Other demand against which Companys pending 165.38 88.28

c) Performance Bank Guarantee 29.1.3 1,595.00 –

d) Standby letter of Credit 29.1.3 934.00 –

e) Unexpired Letter of Credit 29.1.3 880.00 –

Total 3,611.83 125.73

29.1.2 On the basis of current status of individual cases and as perthe legal advices received, where ever applicable the management is ofthe view that no provision is required in respect of these cases given in 29.1 and outflow ofresources is dependent upon final judgement.

29.1.3 Given in terms of Distribution Franchise Agreement (DFA) for Distribution of electricity which is being carried on by India Power Corporation (Bodhgaya) Ltd.

29.2 Commitment

29.2.1 Estimated amount of contracts remaining to be executed on 635.44 2,684.98 capital account and not provided for (net of advances ofRs1033.28 lakhs,previous year Rs98.31 lakhs)

29.2.2 Other Commitment

To subscribe to Compulsorily Convertible Preference Shares of India 4,517.23 – Power Corporation (Haldia) Ltd. (net of advance of Rs537 lakhs)

Total 5,152.67 2,684.98

29.4 Capital work in progress includes cost of equipments and other civil and construction cost amounting to Rs.3827.56 lakhs, pre- operative expenses, trial run expenses (net of revenue) as detailed below. These are allocated to respective assets on capitalisation.

29.5 (a) Net block of fixed assets as on 31st March, 2014 include Rs.1867.04 lakhs and stores and spares include Rs.387.39 lakhs, being assets lying in the leased premises at Chinakuri Power Station which was under operating lease from Eastern Coal Fields Limited (ECL).

29.5 (b) The lease with ECL has expired on 31st March, 2012 and in terms of lease agreement, ECL is required to take over all the assets

at respective Written Down Value as on the date of termination of lease. The Company has made necessary claims for recovery against fixed and current assets from ECL, which is subjudice.

29.6 Certain premises and wind turbine generator are obtained on operating lease. The term for premises is 1-3 years and is renewable as per mutual agreement.

(a) The Company has taken certain plant and machinery on an operational lease basis. The Company is scheduled to pay lease rentals

b) The Company has not made any sublease arrangement with other parties.

c) The Company has recognised an amount of Rs.6279.13 lakhs (previous year Rs.4534.28 lakhs) towards lease rent (note 25) and Rs.4.32 lakhs (previous year Rs.11.64 lakhs) for rent of premises (note 28) for the year.

d) Significant features of Aforesaid lease Arrangements are as follows:

i) The Company will pay the fixed lease rent over the lease period . There is no contingent lease rent except for wind mill at Rajasthan where in lease rent is contingent on revenue receipt.

ii) Upon the expiry of the lease period by efflux of time, the lessor, may agree to have the lease renewed for a secondary lease period.

iii) There are no restrictions imposed on the Company by the existing lease agreements.

29.7 Related Party Disclosures

List of Related Parties where control exists

Name of the Related Party Relationship

India Power Corporation (Bodhgaya) Limited Subsidiary (with effect from 12th September, 2013)

IPCL Pte Ltd. Subsidiary (with effect from 4th October, 2013)

Key Management Personnel Relationship

Shri Jyotirmay Bhaumik Chief Executive Officer (upto 30th April, 2013)

Shri Siddhartha Ratilal Mehta Chief Executive Officer (from 2nd May,2013)

29.9 Employee Benefits gratuity (Funded)

The Company''s gratuity scheme, a defined benefit plan, covers the eligible employees and is administered through a gratuity fund trust. Such gratuity fund, whose investments are managed by Life Insurance Corporation of India(LICI), make payments to vested employees on their cessation of employment, death or incapacitation of an amount based on the respective employee''s salary and tenure of employment subject to a maximum limit of Rs.10.00 lakhs. Vesting occurs upon completion of five years of service.

Superannuation (Funded)

The Company''s superannuation scheme, a defined benefit plan, covers certain category of employees and is administered through a trust fund. Investments of the fund are managed by LICI. Upon retirement, death or cessation of employment Superannuation Fund purchases annuity policies in favour of vested employees or their spouses to secure periodic pension. Such superannuation benefits are based on respective employee''s tenure of employment and salary.

Post Retirement Benefit (Unfunded)

Till the previous year the Company had a scheme for domiciliary treatment for its certain category of retired employees till death and their surviving spouses up to an annual maximum limit. With effect from 1st April, 2013 the scheme has been discontinued and accordingly, provision of Rs.65.18 lakhs there against has been written back and adjusted to Employee Benefit expenses (Note 26).

Lump sum payment (Unfunded)

The Company has a defined benefit plan which covers certain categories of employees for providing a lump sum amount at various scales to the vested employee or his nominee upon retirement, death or cessation of service based on tenure of employment. Vesting occurs upon completion of 20 years of service.

The estimates of future salary increase considered in the actuarial valuation takes into account factors like inflation, seniority, promotion and other relevant factors.

29.10.7 The contribution to the defined benefit plans expected to be made by the Company during the annual period beginning after the Balance Sheet date is yet to be reasonably determined.

29.10.8 During the year Rs.303.85. lakhs has been recognised as expenditure towards Defined Contribution Plans of the Company (Previous Year Rs.340.75 lakhs)

29.11 In terms of the decision arrived at the Board Meeting on 20th July, 2013, the Company in order to give thrust to its Power Business is concentrating and operating in Single Business Segment of Energy comprising of Generation, Transmission and Distribution of Power.

29.12 Figures pertaining to the previous year have been rearranged/regrouped, reclassified and restated, whereever necessary to make them comparable with those of current year.


Mar 31, 2013

1. AMALGAMATION OF INDIA POWER CORPORATION LIMITED

Pursuant to the scheme of arrangement and amalgamation ("the scheme") sanctioned by the Hon''ble High Court at Calcutta vide its order dated 17th April 2013, India Power Corporation Limited (IPCL), which is engaged in the business of power generation, has been amalgamated with the Company with effect from 1st October 2011 (the appointed date). The scheme has since become effective on filing the certified copy thereof on 24th May 2013 with the Registrar of Companies and had therefore been given effect to in these financial Statements.

2.1 Consequent to the amalgamation as above:

The shareholders of erstwhile IPCL will be entitled to 11 equity shares of the Company against 100 shares held by them. Accordingly 1,12,02,75,823 fully paid up ordinary shares of Re 1 each aggregating to Rs.1 1,202.75 lakhs are to be issued to the shareholders of IPCL. IPCL being the Amalgamating Company, its shareholding in 51,61,32,374 fully paid ordinary shares of Rs.1 each aggregating to Rs.5,161.32 lakhs in the Company shall stand cancelled in terms of the scheme approved by the High Court. Pending completion of the said cancellation and allotment, a net amount of Rs.6,041.43 lakhs, being the differential amount with respect to the shares to be issued and to be cancelled has been shown as share capital suspense account as at 31st March 2013.

2.2 As per terms of the scheme, following provisions has been given effect to:

2.2.1 The entire business of erstwhile IPCL along with all the assets, liabilities, interest and charges including the beneficial interest in the Power Trust ( holding asset and liabilities pertaining to Investment Division of IPCL for the benefit of the Company) stands transferred to and vested in the Company as a going concern with effect from the appointed date and the amalgamation is to be accounted for under "Pooling of Interest" method as prescribed in the Accounting Standard 14- Accounting for amalgamation.

2.2.2 In view of the above, all assets and liabilities, reserve and surplus as on 1st October 2011 as detailed below along with rights, interest (including beneficial interest and charges) appearing in the financial Statement of erstwhile IPCL after giving effect to transfer of the assets and liabilities of Investment division to Power Trust as audited by Statutory Auditor of erstwhile IPCL have been incorporated in these Financial Statements and the differential between shares issued and net assets taken over pursuant to the said amalgamation has been treated as Reserve on Amalgamation.

2.3 In terms of the scheme, the Reserves arising pursuant to Amalgamation shall constitute free reserves available to the Amalgamated Company for such purpose including but not limited to declaration of dividend, issuance of Bonus shares etc. as the Board of Directors of the Amalgamated Company may consider appropriate. Accordingly as per the Board resolution, the reserve of Rs.20,079.84 lakhs arising as per 2.2.2 has been shown under the General Reserve of the Company and has not been considered as part of capital reserve. The said amount as per generally accepted accounting practices would otherwise have been treated as capital reserve of the Company.

2.4 The erstwhile IPCL had carried on all its business and activities for the benefit of and in trust for, the Company from 1st October 2011. Accordingly the losses of the erstwhile IPCL for the period from 1.10.2011 to 31.3.2012 have been deducted from the balance of surplus of the Company. Current year''s transaction of the erstwhile IPCL have duly been incorporated in these Financial Statements under the respective heads of account of the Company.

2.5 Pursuant to the Scheme the name of the Company is deemed to have been changed to India Power Corporation Limited and will be given effect to on completion of necessary formalities in this respect.

2.6 Pursuant to sanction of scheme, title deeds, conveyance and other legal documents of amalgamating Company are in the process of being transferred in the name of amalgamated Company.

3.1 Authorised Share Capital increased pursuant to amalgamation of IPCL in terms of the Scheme.

3.2 The company has only one class of equity shares having a par value of Rs.1 each. Each share has one voting right. The dividend proposed by the Board of Directors is subject to approval of share holders in the Annual General Meeting. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

3.3.1 During the financial year 2011 -12 Fully paid Bonus shares in the ratio of 22 (twenty two) equity shares of Rs.1 each for every 1 (one) equity shares of Rs.1 each were issued and allotted on 20th December, 2011.

3.4 90,56,48,230 Equity Shares representing 93% of holding(Previous year 90,56,48,230) are held by India Power Corporation Limited (IPCL), the holding company. Other than IPCL, there are no shareholders holding more than 5% shares of the Company at the close of the year.

3.5 The above disclosures, are without giving effect to the further issue and cancellation of equity shares pursuant to the scheme of amalgamation as given in note 2.1.

4.1 Till the previous year Capital contributions from consumers for service lines were disclosed separately under long term liability. During the year, based on expert opinion obtained, considering that these contributions are not refundable to the consumers even after they cease to be consumers and the underlying assets there against being under notional ownership of the Company, such contribution have been transferred to Capital reserve.

4.2 Contingencies Reserve was created by appropriation out of revenue of each year till the year ended 31st March, 2004 in accordance with the provisions of the Sixth Schedule to the erstwhile Electricity (Supply) Act, 1948. Further to these, reserve for unforeseen exigencies have been created in terms of tariff regulations.

4.3 Capital reserve arising consequent to the amalgamation of Associated power Company limited with the Company in the year 1978 has been shown as other capital reserve.

5.1 (a) Includes 10.75 % Secured Redeemable non convertible Debentures aggregating to Rs.10,000 lakhs redeemable in five installments at the end of 6th , 7th, 8th, 9th and 10th year from the date of allotment i.e. 3rd November, 2010 and is Secured by mortgage of immovable properties consisting of 1.0749 acres of land and four storied building measuring 1190 sqm along with conference hall measuring 359 sq mtr at plot X-1,2&3 , block EP, Salt lake, Kolkata and land, building, office, bungalow and guesthouse at Sanctoria and Asanboni at Asansol (Burdwan) and 1,731.82 sq mtr land at Iswarpura (Gujarat).

5.1 (b) Includes 12% Secured Redeemable non convertible Debentures aggregating to Rs.2,000 lakhs redeemable in five installments at the end of 6th, 7th, 8th, 9th and 10th year from the date of allotment i.e. 19th September, 2012 and is Secured by mortgage of immovable properties consisting of land measuring 20.74 acres and building at Kaithi and Seebpore Mouza at Burdwan District including Bungalow, Quarters, Offices etc at Luchipur Receiving Station area of 56,633.94 sq ft under Seebpore circle.

5.2 (a) Includes Term loan of Rs.3,500 lakhs at bank base rate plus 2.5% and is repayable after moratorium of two years from the date of commencement of production i.e 25th September, 2012 in 9 years in equal quarterly installments and is to be secured by Mortgage of assets of 1x12 MW plant project and immovable property consisting of Land of 20.10 acres at Dishergarh, District Burdwan and second charge on immovable property consisting of 35.50 acres at Asansol and 1.0749 acres at plotX-1,2&3 , Block EP, Salt lake, Kolkata.

5.2 (b) Includes Term Loan of Rs.5,000 lakhs at bank base rate plus 2.5% and is repayable after moratorium of two years in 9 years from the date of disbursement i.e. 29th December, 2012 in equal quarterly installments and is Secured by exclusive charge of entire fixed assets pertaining to 220/33 KV sub-station at J.K Nagar, Burdwan.

5.2 (c) Includes Term loan Rs.41 lakhs at the rate of 13% for purchase of equipment repayable in 35 monthly installments of Rs.2.49 lacs each and is Secured against asset purchased against the loan.

6.1 Cash Credit of Rs.2,299.95 lakhs (previous Year Rs.2,487.61) from South Indian Bank is secured by first pari passu charge on current assets both present and future.

6.2 Cash Credit of Rs.888.14 lakhs (previous year Rs.1,057.79) from IDBI Bank is to be secured by first charge, ranking pari passu on current assets both present and future and second charge on immovable property consisting of 35.50 acres at Asansol and 1.0749 acres at plot X-1,2&3 , block EP, Salt lake, Kolkata.

7.1 Unclaimed dividend does not include any amount due and outstanding to be credited to investor Education and Protection fund.

8.1 Beneficial interest in Power Trust represents Net Book Value of the Investments and liabilities pertaining to Investment division of IPCL transferred to the said Trust (Note 2.2.2)and held by it for the exclusive benefit of the company. In terms of the valuation of an Independent firm of Chartered Accountants, underlying values thereof are not less than the value at which these have been carried and stated in the financial statements.

9.1 Secured by security deposits received from the respective consumers.

10.1 (a) Sale of energy include Fuel Purchase and Power Cost Adjustment (FPPCA) of Rs.1,734.66 lakhs for the year on the basis of formulae prescribed under the applicable Tariff Regulations, and is inclusive of Rs.27.66 lakhs provisionally receivable from consumers on account of under recovery of fixed costs. Adjustments in these respects are carried out and given effect to from time to time based on the order of West Bengal Electricity Regulatory Commission or directions from appropriate authorities.

10.1 (b) Sale of energy include Rs.1,303.30 lakhs for the year 2011 -12 pursuant to the Tariff Order issued by the Hon''ble West Bengal Electricity Regulatory Commission (WBERC) on 14th February 2013 and also include Rs.344.14 lakhs relating to the year 2009-10 as per Annual Performance Review and Fuel Purchase and Power Cost Adjustment orders of WBERC and Tribunal.

11.1 Interest income includes Rs.23.18 lakhs being interest received/accrued during the year on reserve for Unforeseen Exigencies Investment, which has been appropriated to Reserve for unforeseen exigencies - Interest in terms of tariff Regulations as given below:

11.2 Effective 2004-05 power purchased from Damodar Valley Corporation (DVC) is accounted for on the basis of tariff rates (including fuel cost adjustments) charged by DVC on a provisional basis pending issuance of revised tariff order by the Hon''ble Central Electricity Regulatory Commission (CERC) for the years 2004-05 to 2012-13, in terms of the directions issued by the Hon''ble Appellate Tribunal for Electricity (ATE). The Tariff fixed by CERC and the directions issued by the Hon''ble ATE has been challenged by DVC before the Hon''ble Supreme Court of India.

12.1 The Board has proposed 1% commission to non executive directors, as per the provisions of section 309 of the Companies Act, pending approval of the shareholders at the ensuing Annual General Meeting.

13.1 Contingent liability and commitment to the extent not provided for

(Rs. In lakhs)

Particulars 31st March, 2013 31st March, 2012

29.1.1 Contingent Liabilities

Claims against the company not acknowledged as debt 29.1.3

a) Amount refundable to consumers as per Hon''ble APR order for the - 281.44 year 2006-07 against which the company''s appeal is pending before Hon''ble ATE

b) Claim for supplies of coal against which Company''s appeal is - 644.98 pending before Hon''ble High Court at Kolkata

c) Demand from Sales tax authorities against which Company''s appeal 37.45 4.00 is pending

d) Other demand against which Company''s appeal is pending 88.28 10.00

125.73 940.42

13.1.2 Estimated amount of contracts remaining to be executed on capital 2,684.98 1,060.10 account and not provided for (net of advances) 2,684.98 1,060.10

2,810.71 2,000.52

13.1.3 On the basis of current status of individual cases and as per the legal advices received, wherever applicable the management is of the view that no provision is required in respect of these cases given in 29.1.1 and outflow of resources is dependent upon final judgement.

13.3.1 During the year following capital jobs were capitalised

(a) 12 MW thermal power plant on commissioning thereof on 25.9.2012 and commencement of commercial operation

(b) J.K. Nagar sub station on completion of construction and commissioning at the close of the year.

13.3.2 Expenses relating to transmission lines and other facilities at J.K. Nagar included under capital work in progress will be capitalised on completion thereof.

13.4 (a) Net block of fixed assets as on 31.3.2013 include Rs.1,971.85 lakhs and stores and spares include Rs.387.39 lakhs, being assets lying in the leased premises at Chinakuri Power Station which was under operating lease from Eastern Coal Fields Limited (ECL).

13.4 (b) The lease with ECL has expired on 31.03.2012 and in terms of lease agreement, ECL is required to take over all the assets at respective Written Down Value as on the date of termination of lease. The Company has made necessary claims from ECL, which is subjudice.

13.5 Certain premises and Wind turbine Generator are obtained on operating lease. The term for premises is 1-3 years and is renewable as per mutual agreement.

a) The Company has taken certain plant and machinery on an operational lease basis. The Company is scheduled to pay lease rentals as follows:

b) The Company has not made any sublease arrangement with other parties.

c) The company has recognised an amount of Rs.4,534.28 lakhs (previous year Rs.386.05 lakhs) towards lease rent (note 25) and Rs.11.64 lakhs (previous year Rs.11.71 lakhs) for rent of premises (note 28) for the year.

d) Significant features of aforesaid lease arrangements are as follows:

i) The Company will pay the fixed lease rent over the lease period . There is no contingent lease rent except for wind mill at Rajasthan where in lease rent is contingent on revenue receipt.

ii) Upon the expiry of the lease period by efflux of time, the lessor, may agree to have the lease renewed for a secondary lease period.

iii) There are no restrictions imposed on the Company by the existing lease agreements.

13.6 Related Party Disclosures List of Related Parties

i) Fellow Subsidiary India Power Corporation (Haldia) Limited (upto 30.9.201 1)

ii) Holding Company India Power Corporation Limited (upto 30.9.201 1)

iii) Ultimate Holding Company Aksara Commercial Private Limited (upto 30.9.201 1)

Key Management Personnel

i) Chief Executive Officer Shri Jyotirmay Bhaumik

13.7 Segment Reporting

Taking into account the nature of business, the different risks and returns and for better clarity of the state of affairs and performance of operation of the Company. The details of two business segments i.e. Energy comprising of generation, transmission and distribution of power and Investment comprising of investment in non power assets including land, building and securities etc are as follows:

13.8 Employee Benefits Gratuity (Funded)

The Company''s gratuity scheme, a defined benefit plan, covers the eligible employees and is administered through a gratuity fund trust. Such gratuity fund, whose investments are managed by Life Insurance Corporation of India (LICl), make payments to vested employees or their cessation of employment, death, incapacitation of an amount based on the respective employee''s salary and tenure of employment subject to a maximum limit of Rs.10.00 lakhs. Vesting occurs upon completion of five years of service.

Superannuation (Funded)

The Company''s superannuation scheme, a defined benefit plan, covers certain category of employees and is administered through a trust fund. Investments of the fund are managed by LICI . Upon retirement, death or cessation of employment Superannuation Fund purchases annuity policies in favour of vested employees or their spouses to secure periodic pension. Such superannuation benefits are based on respective employee''s tenure of employment and salary.

Post retirement Medical Benefit (Unfunded)

The Company has a scheme for domiciliary treatment for its certain category of retired employees till death and their surviving spouses up to an annual maximum limit.

Lump sum payment (Unfunded)

The Company has a defined benefit plan which covers certain categories of employees for providing a lump sum amount at various scales to the vested employee or his nominee upon retirement, death or cessation of service based on tenure of employment. Vesting occurs upon completion of 20 years of service.

13.8.1 The contribution to the defined benefit plans expected to be made by the Company during the annual period beginning after the Balance Sheet date is yet to be reasonably determined.

13.8.2 During the year Rs.340.75. lakhs has been recognised as expenditure towards Defined Contribution Plans of the Company (Previous Year Rs.308.67 lakhs)

13.9 In view of amalgamation of IPCL with the Company as referred to in note 2, the figures of previous year are not comparable with figures of current year.

13.10 Figures pertaining to the previous year have been rearranged/regrouped, reclassified and restated, whereever necessary to make them comparable with those of current year.


Mar 31, 2012

1.1 The company has only one class of equity shares having a par value of Rs. 1 each. Each share has one voting right. The dividend proposed by the Board of Directors is subject to approval of share holders in the Annual General Meeting. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

1.2 The equity shares of Rs. 10 each were subdivided into equity shares of Rs. 1 each with effect from 17th December, 2011.

1.3.1 Number of shares outstanding at the end of 31st March, 2011 has been converted into equity shares of Rs. 1 each with effect from 17th December 2011 and accordingly shares outstanding at the beginning of the year has been restated.

1.3.2 During the year Fully paid Bonus shares in the ratio of 22 (twenty two) equity shares of Rs. 1 each for every 1 (one) equity share of Rs. 1 each were issued and allotted on 20th December, 2011.

1.4 905648230 Equity Shares representing 93% of holding (Previous year 3937601 shares representing 93% of holding) are held by India Power Corporation Limited (IPCL), the holding company. Other than IPCL, there are no shareholders holding more than 5% shares.

2.1 Contingencies Reserve was created by appropriation out of revenue of each year till the year ended 31st March, 2004 in accordance with the provisions of the Sixth Schedule to the erstwhile Electricity (Supply) Act, 1948. As permitted by the Tariff Regulations, an amount not exceeding 0.25% of the value of gross fixed assets at the beginning of the year is appropriated to a Reserve for Unforeseen Exigencies each year effective 2006-07, subject to the overall ceiling that the balance in this Reserve together with the balance in Contingency Reserve shall not exceed 5% of the value of gross fixed assets at the beginning of the year. For the purpose of arriving at such ceiling reinvestment of interest accrued on Reserve for Unforeseen Exigencies Investment (ascertained separately) are required to be excluded as per the Tariff Regulation.

2.2 Capital reserve consequent to the amalgamation of Associated Power Company limited with the Company in the year 1978.

2.3 During the year balance in Development Reserve I and Development Reserve II has been transferred to General Reserve.

3.1 Debentures represents 10.75 % Secured Redeemable non convertible Debentures (Privately placed) redeemable in five installments at the end of 6th, 7th, 8th, 9th and 10th year from the date of allotment i.e. 3rd November 2010 Secured by mortgage of immovable properties consisting of 1.0749 acres of land and four storied building measuring 1190 sqm along with conference hall measuring 359 sq mtr at Plot X-1.2&3, Block EP, Salt lake, Kolkata and land, building, office, bungalow and guesthouse at Sanctoria and Asanboni at Asansol (Burdwan) and 1731.82 sq mtr land at Iswarpura (Gujarat)

3.2 13.25% term loan repayable after moratorium of two years from the date of commencement of production in 9 years in equal quarterly installments.

To be secured by first Charge on assets of 1x12 MW plant project, second charge on fixed assets of the Company, both present and future and second charge on current assets of the Company, both present and future.

4.1 Cash Credit of Rs. 2487.61 lakhs from South Indian Bank is secured by first primary pari passu charge on entire current assets both present and future along with IDBI bank and second pari passu charge on entire fixed assets both present and future.

4.2 Cash Credit of Rs. 1057.79 lakhs from IDBI Bank is secured by first charge, ranking pari passu with the charge created by hypothecation of entire stock of coal, stores and spares, movable plant and machinery, book debts, outstanding monies, receivable and claims, both present and future.

5.1 Lease hold land includes Rs. 1321.75 lakhs paid for leasehold land at Raghunathpur for which registration is pending.

5.2 Capital work in progress include cost of equipment and pre-operative expenses - Refer Note 26.4.

5.3 Net block of fixed assets as on 31.3.2012 include Rs. 2085.03 lakhs being assets lying in the leased premises at Chinakuri Power Station which is under operating lease from Eastern Coal Fields Limited (ECL). The lease was extended up to 31.3.2012. Subsequent to the Balance Sheet date the lease has not been renewed / extended and there is no operation at the said plant. In terms of the lease agreement in the event of the lease not being renewed / extended ECL will take over all the assets at their respective written down value as on the date of termination of lease.

6.1 Consequent upon Amalgamation of Orbis Power Venture (Pvt.) Ltd. with India Power Corporation Ltd. (the holding Company of the Company). No. of Shareholding increase to 51870000 of Rs. 1 per share against 273000 shares of Rs. 10 per shares in previous year

6.2 Received in lieu of debentures of Woodlands Hospital and Medical Research Centre Ltd.

7.1 The Company has recognised Entitlement for MAT Credit of Rs. 31.25 lakhs (Previous year Rs. 149.00 lakhs) based on convincing evidence that the Company is expected to pay normal tax within the credit entitlement period.

8.1 (a) Sale of energy has continued to be arrived at on the basis of tariff order applicable for the year 2010-11 issued by WBERC pending an order from the Commission pursuant to the Multi Year Tariff Petition filed with the WBERC covering financial year 2011-12. However, as the tariff order for the year is yet to be notified, recovery for the fixed costs has been estimated based on the actual units of power sold during the year ended 31st March, 2011.

9.1 (b) Gross Sales of energy include Monthly Variable Cost adjustment (MVCA) of Rs. 5602.61 lakhs and Fuel Purchase and

Power Cost Adjustment (FPPCA) of Rs. 4100.73 Lakhs for the year on the basis of formulae prescribed under the applicable Tariff Regulations, and is net of Rs. 194.27 lakhs provisionally refundable to consumers on account of over recovery of fixed costs and necessary adjustments thereof will be made upon confirmation by the relevant authorities. Adjustments in these respects are carried out and given effect to from time to time based on the order of West Bengal Electricity Regulatory Commission or directions from appropriate authorities on the matter.

9.2 Effective 2004-05 power purchased from Damodar Valley Corporation (DVC) is accounted for on the basis of tariff rates (including fuel cost adjustments) charged by DVC on a provisional basis awaiting issuance of revised tariff order by the Hon'ble Central Electricity Regulatory Commission (CERC) for the years 2004-05 to 2011-12 in terms of the directions issued by the Hon'ble Appellate Tribunal for Electricity (ATE). The Tariff fixed by CERC and the directions issued by the Hon'ble ATE has been challenged by DVC before the Hon'ble Supreme Court of India.

10.1 Contingent liability and commitment to the extent not provided for

(Rs. in lakhs)

31-Mar-12 31-Mar-11

11.1.1Contingent Liabilities

Claims against the company not acknowledged as debt 26.1.2

a) Amount refundable to consumers as per Hon'ble APR order for the 281.44 281.44 year 2006-07 against which the company's appeal is pending before Hon'ble ATE

b) Claim for supplies of coal against which Company's appeal is pending 644.98 288.14 before Hon'ble High Court at Kolkata

c) Demand from Sales tax authorities against which Company's appeal is pending 4.00 4.00

d) Other demand against which Company's appeal is pending 10.00 10.00

940.42 583.58

12.1,2Estimated amount of contracts remaining to be executed on capital 1,060.10 4,199.13 account and not provided for (net of advances) 1,060.10 4,199.13

2,000.52 4,782.71

13.1.30n the basis of current status of individual cases and as per the legal advice obtained, where ever applicable the management is of the view that no provision is required in respect of these cases given in 26.1.1 as outflow of resources is dependent upon final judgement.

13.2 The Board of Directors of the Company in its meeting held on 10th February 2012 has approved the scheme of arrangement and amalgamation of India Power Corporation Limited (IPCL), holding company with the Company with effect from 1st October, 2011 subject to necessary approvals. The accounting effects consequent to the said scheme would be given on implementation thereof on receipt of requisite approvals and sanctions.

13.3 Certain premises and office equipment are obtained on operating lease. There is no contingent rent in lease agreements. The term is for 1-3 years and is renewable at mutual agreement of both parties. There is no escalation clause in lease agreements. There are no restriction imposed by lease agreements. There are no sublease and all the leases are cancellable in nature. The aggregate lease rentals are charged as rent in Note 25 of financial statement.

13.4.1 The earning per share (EPS) for the year has been computed after giving effect of the allotment of bonus shares and sub division of equity shares and accordingly figures for previous year in this regard have been restated. Also refer Note 2.3.1 and 2.3.2.

13.5 Employee Benefits Gratuity (Funded)

The Company's gratuity scheme, a defined benefit plan, covers the eligible employees and is administered through a gratuity fund trust. Such gratuity fund, whose investments are managed by Life Insurance Corporation of India(LICI), make payments to vested employees or their cessation of employment, death, incapacitation, of an amount based on the respective employee's salary and tenure of employment subject to a maximum limit of Rs. 10.00 lakhs. Vesting occurs upon completion of five years of service.

Superannuation (Funded)

The Company's superannuation scheme, a defined benefit plan, covers certain category of employees and is administered through a trust fund. Investments of the fund are managed by LICI . Upon retirement, death or cessation of employment Superannuation Fund purchases annuity policies in favour of vested employees or their spouses to secure periodic pension.

Such superannuation benefits are based on respective employee's tenure of employment and salary. Benefits under this plan have already vested.

Post retirement Medical Benefit (Unfunded)

The Company has a scheme for domiciliary treatment for its certain category of retired employees till death and their surviving spouses up to an annual maximum limit.

Lump sum payment (Unfunded)

The Company has a defined benefit plan which covers certain categories of employees for providing a lump sum amount at various scales to the vested employee or his nominee upon retirement, death or cessation of service based on tenure of employment. Vesting occurs upon completion of 25 years of service.

13.5.1 The contribution to the defined benefit plans expected to be made by the Company during the annual period beginning after the Balance Sheet date is yet to be reasonably determined.

13.5.2 During the year Rs. 308.67 lakhs has been recognised as expenditure towards Defined Contribution Plans of the Company (Previous Year Rs. 340.98 lakhs)

13.6 As notified by ministry of Corporate Affairs of the Government of India, revised Schedule VI under the Companies Act, 1956 is applicable to all financial year commencing on or after 1st April, 2011. Accordingly, the financial statement for the year ended 31st March, 2012 are prepared in accordance therewith. Figures pertaining to the previous year have been rearranged/regrouped, reclassified and restated, wherever necessary to make them comparable with those of current year.


Mar 31, 2010

1. Effective 2004-05 power purchased from Damodar Valley Corporation (DVC) is accounted for on the basis of tariff rates (including fuel cost adjustments) charged by DVC on a provisional basis awaiting issuance of revised tariff order by the Honble Central Electricity Regulatory Commission (CERC) for the years 2004-05 to 2009-10 in terms of the directions issued by the Honble Appellate Tribunal for Electricity (ATE).

2. (a) Gross Sales of energy include FPPCA of Rs. 1946.89 lakhs for the year 2009-10 realisable from consumers (with corresponding debit to sundry debtors) on the basis of formulae prescribed under the applicable Tariff Regulations, which is net of Rs.755.39 lakhs provisionally refundable to consumers on account of over recovery of fixed costs.

(b) Sundry debtors include Rs. 4,099.45 lakhs being FPPCA (Previous Year - Rs. 4099.45 lakhs) recognised as sale of energy for the year 2008-09 realisable from consumers, computed on the basis of prescribed formulae by the Honble WBERC awaiting disposal.

(c) Sundry debtors include FPPCA of Rs. 556.09 lakhs (Previous Year- Rs. 556.09 lakhs) realisable from consumers, calculated as per formulae prescribed by the Honble WBERC for the year 2007-08, net of amount refundable on account of over-realisation of fixed charges that resulted from additional sales during that year. Awaiting disposal of the Companys appeal before the Honble ATE against Annual Performance Review (APR) Order for the year 2007-08, recovery / adjustment of the amount is pending.

3. Guarantees given on behalf of the Company, as per the Bank Certificates - Rs. 0.10 lakhs (Previous Year - Rs. 0.10 lakhs).

4. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 298.79 lakhs (Previous Year - Rs.63.16 lakhs).

5. Contingent liability to the extent ascertainable and not provided for:

(a) Demands of Sales Tax authorities against which the Companys appeal is pending Rs. 5.87 lakhs (Previous Year-Rs. 5.87 lakhs).

(b) Amount refundable to the consumers Rs. 281.44 lakhs (Previous Year - Rs. 281.44 lakhs) as per the Honble WBERCs- APR Order for the year 2006-07 against which Companys appeal is pending before the Honble ATE.

(c) Other demands against which appeals are pending Rs. 10.00 lakhs (Previous Year- Rs. 37.64 lakhs).

6. Salaries and Wages exclude amounts incurred for work for consumers Rs. 6.96 lakhs (Previous Year-Rs. 9.11 lakhs)

7. Schedule 15 to the Accounts interalia includes in:

(a) Coal Handling Charges Rs. 29.36 lakhs (Previous Year- Rs. 28.68 lakhs) under the head Fuel - (Coal)

(b) Raw Water Charges Rs. 7.30 lakhs (Previous Year - Rs. 6.74 lakhs) under the head Consumption of stores.

(c) Ash Handling Charges Rs. 73.85 lakhs (Previous Year - Rs. 58.87 lakhs) under the head Repairs and Maintenance - Plant and Machinery.

(d) Payment to Contract labour

(i) Rs. 7.59 lakhs (Previous Year-Rs. 4.48 lakhs) under the head Repairs and Maintenance - Plant and Machinery.

(ii) Rs. 61.21 lakhs (Previous Year-Rs. 64.53 lakhs) under the head Repairs and Maintenance - Building.

(iii) Rs. Nil (Previous Year Rs. 0.13 lakhs) under the head Repairs and Maintenence - Others.

8.(b) Exit Settlement Compensation to erstwhile Managing Director

Compensation for breach of contract of employment paid by the Company in accordane with law based on legal opinion obtained by the Company.

(c) Remuneration to Managing Director includes Rs. 2.17 Lakhs awaiting shareholders approval.

9. Employee Benefits :

9.1 Post Employment Defined Benefit Plans :

Gratuity (Funded)

The Companys gratuity scheme, a defined benefit plan, covers the eligible employees and is administered through a gratuity fund trust. Such Gratuity fund, whose investments are managed by Life Insurance Corporation of India (LICI), make payments to vested employees or their cessation of employment, death, incapacitation or cessation of employment, of an amount based on the respective employees salary and tenure of employment subject to a maximum limit of Rs.3.50 lakhs. Vesting occurs upon completion of five years of service.

Superannuation (Funded)

The Companys superannuation scheme, a defined benefit plan, covers certain category of employees and is administered through a trust fund. Investments of the fund are managed by LICI. Upon retirement, death or cessation of employment Superannuation Fund purchases annuity policies in favour of vested employees or their spouses to secure periodic pension. Such superannuation benefits are based on respective employees tenure of employment and salary. Benefits under this plan have already vested.

Post retirement Medical Benefit (Unfunded)

The Company has a scheme for domiciliary treatment for its certain category of retired employees till death and their surviving spouses upto an annual maximum limit.

Lumpsum payment (Unfunded)

The Company has a defined benefit plan which covers certain categories of employees for providing a lumpsum amount at various scales to the vested employee or his nominee upon retirement, death or cessation of service based on tenure of employment. Vesting occurs upon completion of 25 years of service.

9.2 The contribution to the defined benefit plans expected to be made by the company during the annual period beginning after the Balance Sheet date is yet to be reasonably determined.

9.3During the year Rs. 231.82 lakhs has been recognised as expenditure towards Defined Contribution Plans of the Company (Previous Year - Rs. 190.46 lakhs).

10. The Company being engaged in Generation and Distribution of Power in the licensed area in India, has a single segment in terms of Accounting Standard (AS) 17.

11. Related Party Disclosure :

List of Related Parties :

(a) Where control exists

(i) Associate - Descon Ltd.

(ii) Subsidiary of Associate - Descon Soft Ltd.

(iii) Holding Company - Orbis Power Venture Private Limited From Part of the year

(iv) Ultimate Holding Company - India Power Corporation Limited From Part of The year

(b) Key management personnel

(i) Managing Director - Shri S. Radhakrishnan (Up to 10th February, 2010)

(ii) Managing Director - Shri Debi Prasad Patra (From 11th February, 2010)

12. Exceptional item represents profit (net) arising from sale of certain long term investments.

13. Figures for the previous year have been re-grouped/re-arranged wherever necessary.

 
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