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Notes to Accounts of PTC India Ltd.

Mar 31, 2014

Note No. 1 – OTHER INFORMATION

a) The company is in the business of power. Consultancy income and sale/ purchase of coal have not been reported separately as the same being insignificant. As such, there are no separate reportable segments as per Accounting Standard-17 on Segment Reporting as notified by the Companies (Accounting Standards) Rules 2006.

(b) Estimated amount of capital commitments:

(Rsin crore)

Particulars As at As at 31.03.2014 31.03.2013

Claims of supplies 132.38 128.56

Income Tax demands 19.69 6.79

Custom Duty 17.16 10.61

Total 169.23 145.96

Remarks :

(a) Rs. 84.95 Crore pertaining to claim of Himachal Pradesh State Electricity Board. The arbitrator concluded the arbitration in favour of PTC on 31.10.2008, however HPSEB has contested the award in the High Court of Himachal Pradesh.

(b) Rs. 43.28 Crore pretaining to compensation bills raised by Gujarat Urja Vikas Nigam Limited (GUVNL). GUVNL filed a petition before GERC for direction of payment. GERC passed order against PTC. PTC fi led an appeal before APTEL which had directed PTC to deposit 50% of the amount (Rs 20.48 crore) determined GERC. Presently, arguments have been concluded and order has been reserved by APTEL.

@High Court passed the liquidation orders for Ashmore PTC India Infrastructure Advisors Private Limited and Ashmore PTC India Energy Infrastructure Trustee Private Limited on 03.02.2014 and 05.02.2014 respectively

(c) Certain balances of trade payables, trade receivables and advances are subject to confi rmation.

(i) In the opinion of the management, the value of current assets, loans and advances on realization in the ordinary course of business, will not be less than the value at which these are stated in the balance sheet.

(2) Dividend paid to non- resident shareholders (in foreign currency):

(d) In accordance with the accounting policy, the surcharge recoverable on late/ non-payment of dues by sundry debtors is accounted for on receipt basis. Correspondingly surcharge liabilities on late/non-payments to the suppliers, in view of the matching concept, is not being recognized in the accounts. The estimated liability in this regard, however is lower than the company''s claims from its sundry debtors.

(e) During the year, the company has received surcharge of Rs. 206.43 crore (previous year, Rs. 12.53 crore) from sundry debtors on amounts overdue on sale of power which has been included in "Revenue from operations". Correspondingly surcharge expense of Rs. 68.02 crore (previous year, Rs. 1.15 crore) paid/payable to sundry creditors has been included in "other operating expenses".

(f) The previous year figures have been reclassified/regrouped/ rearranged to conform to this year classification, wherever necessary.


Mar 31, 2013

Note No. 1 - NON CURRENT INVESTMENTS

(a) Non current investments

(b) The Company has pledged, in favour of Power Finance Corporation Limited (PFC), 77,77,500 Equity Shares of '' 10 each at par held by it in M/s. Krishna Godavari Power Utilities Limited (KGPUL) along with the promoter of KGPUL to comply with the lending requirements of PFC for loan taken by KGPUL.

(c) Provision for diminution of investments has been made for the Company''s investment in Ashmore PTC India Energy Infrastructure Advisors Private Limited and Ashmore PTC India Energy Infrastructure Trustee Private Limited.

(d) As per Accounting Standard - 27 - ''Financial reporting of interest in Joint Ventures'' notified under Companies (Accounting Standards) Rules 2006, the Company''s share of ownership interest, assets, liabilities, income, expenses, contingent liabilities and capital commitments in the joint venture

i) Economic Assumption:

The principal assumptions are the discount rate and salary increase. The discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of the liabilities and the salary increase takes.

Note No. 2 - OTHER INFORMATION

a) The company is primarily in the business of power. Consultancy income has not been reported separately as the same being insignificant. As such, there are no separate reportable segments as per Accounting Standard -17 on Segment Reporting as notified by the Companies (Accounting Standards) Rules 2006.

b) Estimated amount of capital commitments:

c) Details of contingent liabilities:

i) Claims against the Company not acknowledged as debt:

d) The Company has entered into the following related party transactions. Such parties and transactions have been identified as per Accounting Standard 18 "Related Party Disclosures'' notified under Companies (Accounting Standards) Rules, 2006.

e) Certain balances of trade payables, trade receivables and advances are subject to confirmation.

f) In the opinion of the management, the value of current assets, loans and advances on realization in the ordinary course of business, will not be less than the value at which these are stated in the balance sheet.

g) In accordance with the accounting policy, the surcharge recoverable on late/ non-payment of dues by sundry debtors is accounted for on receipt basis. Correspondingly surcharge liabilities on late/ non-payments to the suppliers, in view of the matching concept, is not being recognized in the accounts. The estimated liability in this regard, however is lower than the company''s claims from its sundry debtors.

h) The previous year figures have been reclassified / regrouped / rearranged to conform to this year classification, wherever necessary.


Mar 31, 2012

1) Details of contingent liabilities:

i) Claims against the Company not acknowledged as debt:

(Rs.in mn)

Particulars As at As at Remarks 31.03.2012 31.03.2011

Claims of 1,285.64 1,285.64 1. Out of total claims, suppliers Rs. 849.50 mn pertains to claim of Himachal Pradesh State Electr -icity Board. The arbitrator concluded the arbitration in favour of PTC on 31.10.2008, however HPSEB has contested the award in the High Court of Himachal Pradesh.

2. Gujarat Urja Vikas Nigam Limited (GUVNL) has raised bills for compens -ation for an amount of Rs.432.77 mn. GUVNL has filed a petition bef -ore GERC for direction of payment. In the opinion of the Company and also as per legal opinion , the said compens -ation is not payable and PTC has challenged the conten -tion of GUVNL. GERC has held that it had jurisdiction to hear the matter and PTC has filed an appeal against the said judge -ment before APTEL mean -while the proceedings before GERC continue till the pendency of appeal before APTEL."

Income tax 43.36 2.15 demands

Others * 37.95 541.15

Total 1,366.95 1,828.94

b) Pursuant to the notification dated December 29, 2011 issued by the Ministry of Corporate Affairs amending the Accounting Standard 11, the subsidiary company (PFS) has exercised the option as per Para 46A inserted in the Standard for all long term monetary assets and liabilities. Consequently an amount of Rs. 86.90 mn (without considering tax benefit of Rs. 28.19 mn) is carried forward in the Foreign currency translation account as on March 31, 2012.

Had the earlier method of accounting been followed for the above items, the net profit for the year ended March 31, 2012 would have been lower by Rs. 58.71 mn (net of taxes) before minority interest and Rs. 35.23 mn after minority interest.

c) Certain balances with parties are subject to confirmation.

d) In the opinion of the management, the value of current assets, loans and advances on realization in the ordinary course of business, will not be less than the value at which these are stated in the balance sheet.

e) Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31 March, 2012 are prepared as per Revised Schedule VI. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. Accordingly, the previous year figures have also been reclassified/regrouped/rearranged to conform to this year classification.


Mar 31, 2003

1. The Promoters, Agreement originally signed by and amongst Power Grid Corporation of India Ltd. (POWERGRID), National Thermal Power Corporation Ltd. (NTPC) and Power Finance Corporation Ltd. (PFC) has since been amended in July, 2002 to increase the Authorised Capital of the company from Rs. 150 crores to Rs. 750 crores and to induct National Hydroelectric Power Corporation Ltd. (NHPC) as a subscriber to PTCs equity, with a status equal to that of POWERGRID, NTPC and PFC. All the four companies have agreed to individually subscribe to not less than 8% of the paid up capital of the company, up to the Authorized Capital of Rs. 750 crores.

NHPC has since subscribed to the equity capital of Rs. 8 crores at par and PFC has subscribed to an additional capital of Rs. 2 crores at par. These amounts have been utilized towards the business operations of the company.

2. Trading of power generated by Chukha Hydel Power Corporation Ltd., Bhutan and Kurichhu Hydro Power Corporation Ltd, Bhutan has been taken over by the company from Power Grid Corporation of lndia Ltd. with effect from 01.10.2002.

3 As per the Revised Mega Power Policy of the Government of India, the company has taken over all developmental work in respect of various Mega Power Projects from Power Grid Corporation of India Limited (POWERGRID) Reimbursement of expenditure to POWERGRID towards developmental expenditure incurred prior to take over of the work had been accounted for to the extent intimated, pending final reconciliation and confirmation of accounts.

PTC had earlier shown a sum of Rs. 52,35,210 as reimbursable to POWERGRID for development work undertaken by it prior to the Commencement of Business of PTC. This issue came up for discussion with Ministry of Power, Govt. of India and it was inferred that all development expenses incurred by POWERGRID prior to the Commencement of Business of PTC should be borne by it and not by PTC. POWERGRID has accordingly been informed about this and the amount has been reversed and booked under Contingent Liabilities - Claims not acknowledged as debts (please refer Note at serial number 14).

4. During the financial year 2001-02, PTC had paid a sum of Rs. 2.0 lakhs to Central Electricity Authority (CEA) as advance towards carrying out consultancy works. Since CEA has not furnished any bills for the consultancy services rendered to the company and the same is not quantifiable the advance is, therefore, not adjusted.

5. In accordance with Accounting Policy number 4 (vi), an expenditure of Rs. 1,49,01,100 incurred in connection with increasing the Authorised Capital from Rs. 150 crores to Rs. 750 crores is treated as "Deferred Revenue Expenditure" and shall be written off equally in five years beginning with the financial year 2002-03.

Had the company not adopted this policy and charged off this expenditure to revenue, the profit of the company for the period would have been lower by Rs. 1 .19 crores.

6. During the year, PTC sold power to, inter alia, Madhya Pradesh State Electricity Board (MPSEB) and Bihar State Electricity Board (BSEB). Both these SEBs, while releasing part of the outstanding payments, have availed of rebates which were not due to them as the payments were not made within the stipulated period. PTC has taken up the matter with them but nevertheless, not considered the same as income due to uncertainty of realization in terms of Accounting Standard 9. The amount of this rebate is Rs. 1.49 crores.

7. As per PPAs entered into with the offtakers of Chukha and Kurichhu power projects, the interest earned on the Term Deposits made with commercial banks for the payments received from them, is passed back to them. PTC has accounted for the same as income as well as an expense in its books of accounts.

8. PTC had purchased office accommodation valuing Rs. 19.64 crores (inclusive of stamp duty) at Bhikaji Cama Place from M/s National Buildings Construction Corporation Ltd., a Govt of India Undertaking and Agreement to Sell in respect thereof had been signed on 21.02.2002 and possession taken over. Sale Deed in respect of the premises is yet to be executed.

9. In the absence of invoice(s) from seller(s), the company has accounted for its liability at the year-end based on the data available.

10. Names of small scale industrial undertakings to whom the company owes any sum, which was outstanding for more than 30 days as at the Balance Sheet date - NONE.

11. Estimated amount of capital commitments - Rs 1.31 lakhs (Previous Year - Rs. 5. 00 lakhs)

12. Claims not acknowledged as debts - Rs.73,34,539 (Previous year - Rs. 20,99, 329)

13. Income earned in foreign exchange 31.03.2003 31.03.2002 Rs. Rs.

NIL NIL

14. The actuarial valuation in respect of retirement benefits of the companys employees has been made as on 31.03.2003.

15. Current liabilities. Sundry debtors and Loans and Advances are subject to confirmation.

16. Audit Fee is subject to approval by the shareholders.

17. Figures of the previous year have been regrouped/reclassified wherever considered necessary to conform to current years classification.

18. Schedules A to J form an integral part of accounts.


Mar 31, 2002

1. As per the Revised Mega Power Policy of the Government of India, the Corporation has taken over all developmental work in respect of various Mega Power Projects from Power Grid Corporation of India Limited (POWERGRID). Reimbursement of expenditure to POWERGRID towards developmental expenditure incurred prior to take over of the work has been accounted for to the extent intimated, pending final reconciliation and confirmation of accounts. A Memorandum of Understanding between the Corporation and POWERGRID in respect of the said work is also under finalization.

2. Ministry of Power, Govt. of India had proposed that the Corporation will take over the trading of Power between M/s. Chukha Hydro Power Corporation (CHPC) and Kurichhu Project Authority (KPA) of Bhutan and the State Electricity Boards of certain Eastern states with effect from 1.3.2002. However, pending formal advice from Govt. of India to the Royal Govt. of Bhutan, the trading is being continued to be undertaken and accounted for by M/s. Power Grid Corporation of India Ltd.

3. PTC has purchased office accommodation valuing Rs. 19.57 crores (inclusive of stamp duty) at Bhikaji Cama Place, New Delhi from M/s National Building Construction Corporation Ltd., a Govt. of India Undertaking and Agreement to Sell in respect thereof has been signed on 21.02.2002 and possession taken over. PTC has paid Rs. 1,69,706/- towards proportionate ground rent for the period from 21.02.2002 to 31.03.2002, as also the maintenance charges of Rs. 12,857/- for the ibid period. Sale deed in respect of the premises is yet to be executed.

4. In the absence of invoice(s) from seller(s), the corporation has accounted for its liability at the year-end based on the data available.

5. The terms of award of Consultancy work to ICICI Ltd. for Hirma Power Project prescribes payment of fee to ICICI on recovery from the beneficiary State Electricity Boards. The contract with ICICI Ltd. has been closed during the year and final payment released to ICICI. Advances include Rs.17,68,672/- debited for recovery from the State Electricity Boards.

6. The Income Tax liability of the corporation for F Y 2001-02 has been worked out after setting off carried forward losses and depreciation for the previous years, as per the I T Returns filed by the corporation with the Income Tax Department.

7. PTC had paid a sum of Rs. 2.0 lakhs to Central Electricity Authority (CEA) as advance towards carrying out consultancy works on its behalf. Since CEA has not furnished any bills for the consultancy services rendered to the corporation and the same is not quantifiable, the advance is, therefore, not adjusted.

8. Names of small scale industrial undertakings to whom the Corporation owes a sum exceeding Rs. 1 lakh, which was outstanding for more than 30 days as at the Balance Sheet date- NONE.

9. Estimated amount of capital commitments - Rs. 5.0 lakhs (Previous Year - NIL).

10. Claims not acknowledged as debts - Rs.20,99,329/- (Previous year Rs.20,99,329/-).

14. Income earned in foreign exchange

15. The actuarial valuation in respect of retirement benefits of the corporations employees has been made as on 31.03.2002.

17. Audit Fee is subject to approval by the shareholders.

18. Figures of the previous year have been regrouped/reclassified wherever considered necessary to conform to current years classification.

19. Schedules A to J form an integral part of accounts.

 
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