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Notes to Accounts of India Power Corporation Ltd.

Mar 31, 2023

Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation
in measurement are recognized when there is a legal
or constructive obligation as a result of past events
and it is probable that there will be an outflow of
resources and a reliable estimate can be made of the
amount of obligation. Provisions are not recognized
for future operating losses. The amount recognized as
a provision is the best estimate of the consideration
required to settle the present obligation at the end of
the reporting period, taking into account the risks and
uncertainties surrounding the obligation.

Contingent liabilities is not recognized and are
disclosed by way of notes to the financial statements
when there is a possible obligation arising from past
events, the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
the Company or when there is a present obligation that
arises from past events where it is either not probable
that an outflow of resources will be required to settle
the same or a reliable estimate of the amount in this
respect cannot be made.

Contingent Assets are disclosed in the financial
statements by way of notes to accounts when an inflow
of economic benefits is probable.

2.16 Employee Benefits

The Company makes contributions to Gratuity fund
which is administered through duly constituted and
approved Trust. Provident Fund contributions are in the
nature of defined contribution scheme. Provident funds
are deposited with the Government and recognised
as expense. The cost of providing benefits under the
defined benefit obligation is calculated by independent
actuary using the projected unit credit method.
Service costs and net interest expense or income is
reflected in the Statement of Profit and Loss. Gain or
Loss on account of remeasurements are recognised
immediately through other comprehensive income in
the period in which they occur. The employees of the
Company are entitled to compensated leave for which
the Company records the liability based on actuarial
valuation computed using projected unit credit method.
These benefits are unfunded except Gratuity.

2.17 Revenue Recognition

Revenue from contracts with customers is recognised
on supply of electricity or when services are rendered
to the customers at an amount that reflects the
consideration to which the Company is entitled under
appropriate regulatory framework.

Revenue to be earned from sale of electricity supplied
from regulated business is accounted for on basis of
monthly billing with specified due dates to consumers
at rates approved by WBERC based on relevant tariff
order and Company''s understanding of the applicable
available regulatory provisions. Sales are net of rebates
and do not include electricity duty collected from
consumers and payable to the State Government.

Sale of electricity other than above is billed monthly
with specified due dates and accounted for at rates
agreed with respective consumers.

Regulatory income and expense for the year recognised
as per Regulations issued by WBERC are shown
separately in the Statement of Profit and Loss.

The Company receives contribution from consumers
in accordance with the regulations, that is being
used to construct or acquire items of property, plant
and equipment in order to connect the consumer to
the Company''s distribution network. The Company
recognises revenue in respect for such contribution so
received from consumer in the year they are connected
to the distribution network.

2.18 Interest, Dividend and Claims

Dividend income is recognized when the right to receive
payment is established. Interest has been accounted
using effective interest rate method. Insurance claims/
other claims are accounted as and when admitted /
settled.

2.19 Borrowing Costs

Borrowing cost comprises of interest and other costs
incurred in connection with the borrowing of the funds.
All borrowing costs are recognized in the Statement
of Profit and Loss using the effective interest method
except to the extent attributable to qualifying Property
Plant and Equipment (PPE) which are capitalized to
the cost of the related assets. A qualifying PPE is an
asset, that necessarily takes a substantial period of
time to get ready for its intended use or sale. Borrowing
cost also includes exchange differences to the extent
considered as an adjustment to the borrowing costs.

2.20 Income Tax

Current tax represents the amount payable based on
computation of tax as per prevailing taxation laws
under the Income Tax Act, 1961. Provision for deferred

taxation is made using liability method on temporary
difference arising between the tax base of assets and
liabilities and their carrying amounts in the financial
statements using tax rates (and laws) that have been
enacted or substantially enacted by the end of the
reporting period and are expected to apply when the
related deferred tax asset is realised or the deferred tax
liability is settled. Deferred Tax Assets are recognized
subject to the consideration of prudence and are
periodically reviewed to reassess realization thereof.
Deferred Tax Liability or Asset will give rise to actual
tax payable or recoverable at the time of reversal
thereof. Current and Deferred tax relating to items
recognised outside profit or loss, that is either in other
comprehensive income (OCI) or in equity, is recognised
along with the related items.

2.21 Earnings per equity share

Basic earnings per share including regulatory income/
expense is calculated by dividing the net profit or loss
for the period attributable to equity shareholders
(after deducting attributable taxes) by the weighted
average number of equity shares outstanding during
the period. The weighted average number of equity
shares outstanding during the period is adjusted for
events including a bonus issue.

Basic earnings per share excluding regulatory income/
expense is calculated by dividing the net profit or loss
for the period before regulatory income/expense
attributable to equity shareholders (after deducting
attributable taxes) by the weighted average number
of equity shares outstanding during the period. The
weighted average number of equity shares outstanding
during the period is adjusted for events including a
bonus issue.

For the purpose of calculating diluted earnings per
share including regulatory income/expense, the net
profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) and
the weighted average number of shares outstanding
during the period are adjusted for the effects of all
dilutive potential equity shares.

For the purpose of calculating diluted earnings per
share excluding regulatory income/expense, the net
profit or loss for the period before regulatory income/
expense attributable to equity shareholders (after
deducting attributable taxes) and the weighted average
number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity
shares.

2.22 Regulatory Assets and Liabilities

Regulatory assets and liabilities shown as Regulatory
Deferral Account Balance are recognised based
on process defined in Tariff Regulations issued by
WBERC and in accordance with provision of Ind AS
114- Regulatory Deferral Accounts read with guidance
note on rate regulated activities. Any adjustment
thereof are recognised in the year in which order of
WBERC are received. It includes amount recoverable
from/ refundable to consumers on account of Fuel and
Power Purchase Cost Adjustment (FPPCA), and other
adjustments based on tariff regulations and orders.
Consequential adjustments are given effect to upon
confirmation by the relevant authorities.

3 CRITICAL ACCOUNTING JUDGEMENTS,
ASSUMPTIONS AND KEY SOURCES OF
ESTIMATION AND UNCERTAINTY

The preparation of the financial statements in
conformity with IND AS requires management to
make estimates, judgments and assumptions. These
estimates, judgments and assumptions affect the
application of accounting policies and the reported
amount of assets and liabilities, the disclosures of
contingent assets and liabilities at the date of the
financial statements and reported amount of revenues
and expenses during the period. Accounting estimates
could change from period to period. Actual results could
differ from those estimates. Appropriate changes in
estimates are made as management becomes aware of
changes in circumstances surrounding the estimates.
Differences between the actual results and estimates
are recognised in the year in which the results are
known / materialized and, if material, their effects are
disclosed in the notes to the financial statements.

Application of accounting policies that require
significant areas of estimation, uncertainty and
critical judgments and the use of assumptions in the
financial statements have been disclosed below. The
key assumptions and other key sources of estimation
and uncertainty at the balance sheet date, that have a
significant risk of causing a material adjustment to the
carrying amount of assets and liabilities within the next
financial year have also been discussed below:

a) Regulatory Deferral Account Balances

Regulatory Deferral account balances consists of
Fuel and Power Purchase Cost Adjustment (FPPCA)
and other accruals as per the tariff Regulation as
recognised in the accounts have been considered on

the basis of available tariff order and as per the norms
and formula prescribed in the regulations. This may
vary requiring adjustments on determination by the
regulator.

b) Fair Valuation of Financial assets

Beneficial interest in Power Trust have been evaluated
and considered based on the valuation of underlying
securities and the projected inflows of the Investee
entities as estimated by the respective management
and evaluated by an independent valuer. Variation
arising with respect to actual numbers in future may
require adjustment effecting other comprehensive
income.

Investment in unlisted equity are carried at fair value
through other comprehensive income based on
latest available audited financial statement and other
relevent information available with the Company as at
the balance sheet date.

c) Income taxes

Significant judgment is required in determination of
taxability of certain income and deductibility of certain
expenses during the estimation of the provision for
income tax. Accordingly, such provision has been made
considering concession/allowances including those
based on expert advice/judicial pronouncements.

d) Contingencies

Management judgement is required for estimating
the possible outflow of resources, if any, in respect of
contingencies/claim/litigations as it is not possible to
predict the outcome of pending matters with accuracy.

e) Impairment loss on trade receivables

The Company evaluates whether there is any objective
evidence that trade receivables are impaired and
determines the amount of impairment loss as a result of
the inability of the debtors to make required payments.
The Company bases the estimates on the ageing of
the trade receivables balance, credit-worthiness of the
trade receivables and historical write-off experience.
If the financial conditions of the trade receivable
vary, it may effect the amount of actual write-offs as
estimated.

f) Defined benefit obligation (DBO)

Management''s estimate of the DBO is based on a number
of critical underlying assumptions such as standard
rates of inflation, cost trends, mortality, discount rate
and anticipation of future salary increases. Variation in
these assumptions may impact the DBO amount and
the annual defined benefit expenses.

4 AMALGAMATION OF INDIA POWER
CORPORATION LIMITED

Pursuant to the scheme of arrangement and
amalgamation (‘the scheme'') sanctioned by the Hon''ble
Calcutta High Court vide its order dated 17th April, 2013,
erstwhile India Power Corporation Limited (erstwhile
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.

4.1 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 '' 1 each of the Company aggregating to
'' 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 '' 1 each aggregating to '' 5,161.32 lakhs
in the Company shall stand cancelled in terms of the
scheme approved by the High Court leaving 38,95,15,856
equity shares held by Power Trust. The above referred
allotment and cancellation has not been given effect
due to certain pending clearance(s)/approval(s) from
the Stock Exchanges. Pending this, a net amount of
'' 6,041.43 lakhs, being the differential amount with
respect to the equity shares to be allotted and to be
cancelled as stated herein above, has continued to be
shown as share capital suspense account.

In terms of the Orders dated 27th January, 2017 ,
25th August, 2017 and 18th May, 2018 of Hon''ble
Calcutta High Court, Power Trust transferred/sold off
through Offer for Sale 6,57,70,691 equity shares of the
Company. Therefore, Power Trust holds 32,37,45,165
equity shares of the Company as on 31st March, 2023.


Mar 31, 2021

The Company has elected to continue with the carrying value of its Property, Plant & Equipment(PPE) as on April 1, 2015 (transition date) measured as per previous GAAP and used that carrying value as its deemed cost.

Gross Block and Net Block of buildings includes '' 166.67 lakhs and '' 127.14 lakhs ('' 166.67 lakhs and '' 133.75 lakhs as on March 31,2020) respectively being building constructed on land not owned by the company.

Refer note 22 & 28 for charge against PPE.

Refer note 16.1 for disposal of Chinakuri Power Plant.

Company has revalued its Land Assets by adopting revaluation model as approved by the Board of Directors w.e.f 1st April, 2019 based on valuation report of an independent IBBI registered valuer. The valuation has been done on level 3 hierarchy as per Ind AS 113, at the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.

During the financial year 2019-20 as a result of revaluation, freehold Land value has increased from '' 288.20 lakhs to '' 23,542.17 lakhs and Leasehold Land value has increased from '' 1,547.99 lakhs to '' 33,191.26 lakhs. The said increase of '' 54,897.24 lakhs has been recognised in Other Comprehensive Income and credited to revaluation surplus in Other Equity. The related amortization of '' 595.31 lakhs and deferred tax of '' 10,170.11 lakhs has been recognised.

If revaluation model was not adopted net carrying value of Freehold and leasehold land as on 31st March, 2020 would have been '' 288.20 lakhs & '' 1,521.26 lakhs respectively and profit for the previous year would have increased by '' 456.63 lakhs and total comprehensive income for the previous year would have decreased by '' 44,270.50 lakhs.

Reclassified in accordance with Ind AS 116 as Right of use assets.

(a) The Company''s investment of 381,15,06,509 shares in Meenakshi Energy Limited (MEL) representing 92.75% of MEL equity shares being held until 2nd May, 2018 valued at '' 66.48, which were fully pledged with SBICAP Trustee Company Limited (SBI CAP) on behalf of the lenders of the MEL was invoked on 2nd May, 2018. This matter and lender interchangeability is presently pending with Hon''ble High Court of Andhra Pradesh and is sub-judice.

Pursuant to initiation of Corporate Insolvency Resolution Process during the year ended 31st March, 2020 in respect of Meenakshi Energy Limited (MEL), MEL ceased to be subsidiary of the Company w.e.f. 7th November, 2019. Fair value of investments in MEL are adjusted through Other Comprehensive income based on its latest available financial statement for the year ended 31st March, 2018.The Management considers the value of receivables from (amounting to '' 3,753.24 lakhs) and investments in MEL as appropriate and reasonable and holds good for recovery and expects to recover these in near future based on the developments in the ongoing resolution process.

Against the said investments and receivables, the Company has filed claims under CIRP process and an amount of '' 16,617.83 lakhs has been admitted.

(b) Pursuant to initiation of Corporate Insolvency Resolution Process during the year ended 31st March, 2020 India Power Corporation (Bodhgaya) Limited ceased to be subsidiary of the Company w.e.f. 8th November, 2019.

Includes '' 360.77 lakhs ('' 30.26 lakhs as on 31st March, 2020 ) kept as margin money with bank and '' 111.12 lakhs ('' 250.58 lakhs as on 31st March, 2020) kept with bank as lien against repayment of term loans.

Beneficial interest in Power Trust represent investments in company''s shares and other unlisted companies net off borrowings and liabilities pertaining to investment division of erstwhile IPCL transferred to the said Power Trust in terms of the scheme of amalgamation (refer note 4). Considering that the Company''s shares are held by an independent trust and are meant for sale in terms of Hon''ble Calcutta High Court order the beneficial interest (including company''s shares) has been treated as financial assets and fair valuation as on 31st March, 2021 as required in terms of Ind AS 109 has been carried out by an independent Registered Valuer and the resultant decrease of '' 129.56 lakhs (increase of '' 260.82 lakhs as on 31st March, 2020) in value thereof, has been adjusted through other comprehensive income.

Secured by security deposits/ bank guarantee received from the respective consumers.

The Company extends credit to consumers in normal course of business as per Regulation issued by West Bengal Electricity Regulatory Commission for regulatory business and as per Power Purchase agreements (PPA) entered with DISCOMs for non regulatory business. Consumer''s outstanding balances are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivable as low as outstanding from non regulatory business is covered with PPA with government undertakings and in case of regulated business outstanding are as governed by rate regulated body of the state government and customers can not shift to other distribution licensee without clearing dues and obtaining "No objection certificate" from the Company. The Company has also taken advances and security deposit from its consumers, to mitigate the credit risk to an extent.

(a) Includes '' 167.40 lakhs ('' 458.12 lakhs as on 31st March,2020) kept as margin money with bank and '' 751.55 lakhs ('' 343.48 lakhs as on 31st March, 2020 ) kept with bank as lien against repayment of term loans.

(b) Includes '' 122.00 lakhs ('' 112.20 lakhs as on 31st March, 2020) being investment against Unforeseen exigencies fund and '' 227.00 lakhs ('' 205.10 lakhs as on 31st March, 2020) being Investment against Unforeseen exigencies Interest fund.

The lease of Chinakuri Power Station (CPS) with Eastern Coal Fields Limited (ECL) has expired on 31st March, 2012 and in terms of lease agreement ECL is required to take over all assets at respective Written Down Value as on the date of termination of the lease. In terms of the arbitration order passed by Arbitration Tribunal, handing / taking over of vacant and peaceful possession of CPS has been completed on 6th October, 2016, and thereby the resultant amount of '' 2468.10 lakhs has been shown as recoverable from ECL.

The Company''s claim / counter claim from ECL with respect to above and ECLs claim against the Company in this respect are under arbitration pursuant to the order of Hon''ble Supreme Court of India. Adjustment in this respect will be given effect to as and when determined.

Receivable from Power Trust represents amount receivable for sale of Compulsorily Convertible Preference Shares of Hiranmaye Energy Limited (formerly known as India Power Corporation (Haldia) Limited) in previous years and for which necessary approvals need to be obtained.

Tariff regulations, risks and uncertainties

In the State of West Bengal, tariff for electricity are determined by West Bengal Electricity Regulatory Commission (WBERC/

Commission).

(a) Multi year tariff (MYT) proposal giving therein details for appropriate capital structure to meet the capital investment plan with details of cost of financing including interest cost on debt and return on equity, expected sales for the years and the ''Annual Revenue Requirement'' (ARR) covering both variable and fixed cost is submitted to WBERC. Commission examines the MYT proposals thereafter and tariff is determined for different categories of consumers. At the end of the financial year, "Annual Performance Review" (APR) petition for fixed cost and Fuel and Power Purchase Cost Adjustment (FPPCA) for variable cost is submitted to WBERC. WBERC reviews cost incurred under two categories as defined in Tariff regulation as "Controllable" and "Uncontrollable". In case of Uncontrollable cost all increase are allowed on actual basis and for Controllable cost, the commission may disallow any increase if these are not considered to be justifiable.

(b) The tariff regulation prescribes various normative operational and financial parameters for the Company. Any variation thereof may lead to disallowances. The Company is exposed to regulatory risk to the extent accruals are disallowed on assessment.

(c) As per the Tariff Regulation any increase in variable cost is allowed to be recovered from consumers based on formula prescribed in the tariff regulation for " Fuel and Power Purchase Cost Adjustment" (FPPCA) as ''monthly variable cost adjustment'' (MVCA). FPPCA recoverable/ refundable, reliability incentive etc is accounted for as regulatory income/ (expense) in the statement of Profit and Loss.

(d) Regulatory deferral account balances relate to FPPCA, Reliability incentive and other accruals recognised on the basis of latest declared tariff order and claims filed with WBERC. Accruals on account of FPPCA and reliability incentives etc are recognised in books as per formula prescribed in Tariff Regulation. Reversal/ accrual are carried out in the year in which Tariff, FPPCA and APR orders are received. Recovery of the regulatory deferral account balances are carried out in the manner and instalments as allowed by WBERC.

18.2 Payable on account of FPPCA of '' 1,752.93 lakhs for the year has been recognised on the basis of formulae prescribed under the applicable Tariff Regulations. The Company is entitled for incentive and gains including incentive for reliability in power supply and accordingly based on applicable norms as per Tariff regulation and claims filed with WBERC, '' 403.91 lakhs have 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.

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 ownership of the Company, such contribution are being treated as Capital Reserve.

Reserve arising on amalgamation of Associated Power Company Limited with the Company in the year 1978 has been shown as other capital reserve.

(a) The general reserve is created from time to time by appropriating profits from retained earnings at the discretion of the company. As the general reserve is created by a transfer from one component of equity to another, and accordingly it is not reclassified to the Statement of profit and loss.

(b) General Reserve include '' 56,887.09 lakhs being General reserve of amalgamating company in terms of Note 4. Further, reserve of '' 20,079.84 lakhs arising on amalgamation has also been included therein.

Reserve for unforeseen exigencies reserve are created in terms of the Tariff Regulation issued by West Bengal Electricity Regulatory Commission. The sum appropriated to ''Reserve for unforeseen exigencies fund'' are to be invested in specified securities and financial instruments (fixed deposit) at Nationalised bank . The interest accrued from such investment is reinvested and kept under - ''Reserve for unforeseen exigencies Interest fund''. The aforesaid reserves or fund shall be drawn upon only to meet such charges as the Commission may approve.

Retained Earnings generally represent the undistributed profits /amount of accumulated earnings of the Company. Dividend Distribution

The amount that can be distributed by the Company as dividends to its equity shareholders is determined considering the requirements of the Companies Act, 2013 and the dividend distribution policy of the Company.

On 30th September, 2020 dividend pertaining to the financial year 2019-2020 of '' 0.05 per equity shares aggregating to '' 228.83 Lakhs has been approved and paid to equity shareholders of the Company.

In respect of the year ended 31st March, 2021, the Board of Directors has recommended a dividend of '' 0.05 per share to be paid on fully paid equity shares. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. The actual dividend will be paid on equity share capital outstanding as on the record date/ book closure.

7 OCI represents:

(a) Revaluation Surplus- The company has elected to remeasure the value of its freehold and long term leasehold land and the gain arising on revaluation has been recognised in other Comprehensive income. The said reserve can not be utilised for distribution to shareholders.

(b) Cumulative gains and losses arising on Fair valuation of beneficial interest in power trust and equity instruments. The company transfers amounts from this reserve to retained earnings when the relevant equity securities and beneficial interest in power trust are disposed.

(a) Includes 10.75 % Secured Redeemable Non Convertible Debentures aggregating to '' nil ( '' 1,987.94 lakhs as on 31st March, 2020) 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 secured by mortgage of immovable properties consisting of 1.0749 acres of land and all the buildings including all structures there on, fixed plant and machinery, furniture & fittings, present and future at Plot X1-3 , Block EP, Salt lake, Kolkata and 1731.82 sq mtr land at Iswarpura (Gujarat)

(b) Includes 12 % Secured Redeemable Non Convertible Debentures aggregating to '' 800 lakhs ('' 1,200 lakhs as on 31st March, 2020) 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 secured by mortgage of immovable properties consisting of land measuring 20.74 acres and building at Kaithi and Seebpore Mouza at Burdwan District including Bungalows, Quarters, Offices etc at Luchipur Receiving Station area of 56,633.94 sqft under Seebpore circle.

(a) Includes term loan of '' 1,195.57 lakhs ('' 1,328.62 lakhs as on 31st March, 2020 ) at 1 year MCLR plus 4.65% and is repayable after moratorium of two years from 1st April, 2012 in 9 years in thirty six equal quarterly installments 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 and second pari passu charge on assets charged to secure Non Convertible Debentures of '' 10,000 lakhs given in note 22.1 (a).

(b) Includes term loan of '' 4,286.82 lakhs ( '' 4,492.53 lakhs as on 31st March, 2020) at MCLR plus 1.40% and is repayable in 9 years from 10th September 2016 in equal quarterly installments and is secured by pari passu 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 '' nil ('' 875 lakhs as on 31st March, 2020) at 1 year MCLR plus 1% repayable in 16 quarterly installments with effect from 8th December 2016 and is secured by exclusive first charge on movable and other fixed assets of Dishergarh Receiving Station, Parbelia Substation and Dishergarh Power Station of the Company both present and future and negative lien on certain immovable fixed assets.

(d) Includes term loan of '' 485.25 lakhs ('' 519.46 lakhs as on 31st March, 2020) at 1 year MCLR plus 2.45% repayable in 40 quarterly installments with effect from 31st March 2016 and is secured by first pari passu charge with other financing banks/financial institution on the assets created/to be created out of the term loan, both present and future and exclusive fixed charge on certain fixed assets of the Company.

(e) Includes Guaranteed emergency credit line - Working Capital term loan of '' 3,064.20 lakhs ('' nil as on 31st March, 2020) at 1 year MCLR repayable in 48 equal monthly installments after moratorium of 12 months from the date of first disbursement and is 100% guaranteed by National Credit Guarantee Trustee Company Limited secured by second charge by way of hypothecation of entire current assets of the Company, both present and future.

(f) Includes Guaranteed emergency credit line - Working Capital term loan of '' 622 lakhs ('' nil as on 31st March, 2020) at 1 year MCLR plus 1% repayable in 48 equal monthly installments after moratorium of 12 months from the date of first disbursement and is 100% guaranteed by National Credit Guarantee Trustee Company Limited secured by second charge by way of hyphotication of entire current assets of the Company, both present and future on pari passu basis with working capital lenders and second charge on security given against term loan in note 22.2 (a) and land measuring 0.18 decimal located at Mouza- Mandalpur and also on immovable properties situated at Jamuria.

(g) Includes term loan of '' 3.67 lakhs ('' 17.55 lakhs as on 31st March, 2020) at the rate of 8.80% repayable in 48 monthly installments is secured against the asset purchased out of the Loan.

Includes term loan of '' 690.82 lakhs ('' nil as on 31st March, 2020) at 11.45% repayable in 20 equated quarterly installments with effect from 30th June 2021 and is secured by way of hypothecation of entire fixed assets pertaining to SCADA at J.K Nagar Sub-station and associated 33/11 kv substation including any interconnecting equipment in-betweens, collateral security of value equivalent to 30% of loan amount in form of residential plots/flats/houses along with postdated cheques of both principal and interest amounts as per repayment schedule.

Represents loan from a body corporate repayable on 30th April, 2022 (for previous year repayable on 1st April, 2021) at nil rate of interest.

(a) Includes '' 5,498.10 lakhs ('' 5,579.84 lakhs as on 31st March, 2020) secured by first pari passu charge on current assets both present and future and second pari passu charge on fixed assets of the company charged against Non Convertible Debentures of '' 10,000 lakhs as given in note 21.1 (a).

(b) Includes '' 1,694.85 lakhs ('' 2,261.20 lakhs as on 31st March, 2020) secured by first charge, ranking pari passu on current assets both present and future.

(c) Include '' 2,737.67 lakhs ('' 4,040.79 lakhs as on 31st March, 2020) secured by first pari passu charge on current assets both present and future.

(d) Include '' 430.38 lakhs ('' 1,536.32 lakhs as on 31st March, 2020) 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.

Represents funded interest term loan (working capital demand loan as on 31st March, 2020) secured by first pari passu charge on current assets both present and future and exclusive charge on certain movable fixed assets of Dhasal substation.

Represents '' Nil ('' 2400 lakhs as on 31st March, 2020) intercorporate deposit taken in previous year.

The Company had given Corporate Guarantee on 23rd September, 2016 in favour of lenders of Meenakshi Energy Limited (MEL) for the outstanding loan amount ('' 2,79,963.76 lakhs as on March 31, 2019) subject to WBERC approval. WBERC has declined the approval vide their letter dated November 10, 2017, which has been accordingly intimated to the lenders. Accordingly the lenders of MEL were informed that the Corporate Guarantee given earlier is void. {refer note 7.3(a)}.

Lenders of MEL on 20th December, 2017 demanded '' 93.58 crores from IPCL against the Corporate Guarantee which is sub-judice.

Corporate guarantee given in 44 (c) above are in the nature of insurance contract.

Certain premises has been obtained on operating lease. The term for premises is less than 1 years and is renewable as per mutual agreement.

The Company has taken certain plant and machinery on lease basis.

Significant features of aforesaid lease arrangements are as follows:

i) The Company will pay the lease rent over the lease period . The lease rent is calculated 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.

The Company has taken certain land and equipment on Lease. Carrying value of land taken on lease is '' 31,938.41 lakhs ('' 32,569.22 lakhs as on March 31 2020) and carrying value of equipment taken on lease is '' 816.75 ('' 1,732.39 as on 31st March, 2020). The Company is scheduled to pay lease rental as follows:

SEGMENT REPORTING

Company''s business activities involves power generation, power distribution and other strategic activities. The Company''s organisational structure and governance processes are designed to support effective management of multiple segment while retaining focus on each one of them. The segments of Company are well organised and internal records are separately maintained for each segment. Further management reviews each segment independently to make decisions about resource allocation and performance measurement.

The operation of the Company consists of two segments, namely :

a. Regulated Business, which consists of power distribution business (including thermal power generation which exclusively supply power for distribution business) in Asansol, West Bengal (licensed area) regulated by West Bengal Electricity Regulatory Commission;

b. Non Regulated business, consists of all the businesses which are not covered under clause (a)

Non Regulated business of the company are independent and has no bearing with the Regulated business. All rights, obligations, liabilities, profits or losses of Non Regulated Business arising from any contract, financial transaction, financial commitment (including corporate guarantee) or any statute or under any Act is solely attributable to Non Regulated segment. Any demand &/or loss (present &/or future), pertaining to Non Regulated Business, arising out of any activity, including inter-alia, investment activity or acquisition activity starting from the acquisition of the investments and from its further operations will be the liability of the Non Regulated business segment only and to be settled utilising the funds of Non Regulated Business &/or from its assets.

Share capital suspense of '' 6,041.43 lakhs represents equity share capital of '' 11,202.75 lakhs (net of '' 5,161.32 lakhs to be cancelled), to be issued to the Shareholders of amalgamating Company pursuant to a scheme under implementation as on this date. EPS has been computed taking into account the net balance of '' 6,041.43 lakhs in share suspense account representing 6,041.43 lakhs fully paid up shares of '' 1 each, the allotment in respect of which is in abeyance for certain pending formalities with stock exchange as per interim order of SEBI relating to Minimum Public Shareholding.

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) and HDFC, 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 '' 20.00 lakhs. Vesting occurs upon completion of five years of service.

The weighted average duration of the defined benefit obligation as on 31st March, 2021 is 6 years (6 years as on 31st March, 2020).

Post Retirement Obligation -Lump sum payment in lieu of Pension (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 weighted average duration of the defined benefit obligation as on March 31,2021 is 4 years (5 years as on 31st March, 2020).

These assumptions were developed by management with the assistance of independent actuarial appraisers Discount factors are determined close to each year-end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management''s historical experience.

I 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.

During the year '' 273.00 lakhs has been recognised as expenditure towards defined contribution plans of the company (previous Year '' 301.57 lakhs)

FINANCIAL INSTRUMENTS FINANCIAL ASSETS AND FINANCIAL LIABILITIES)

Categories of Financial Instruments

(b) Fair Value Technique

The fair values of the financial assets and financial liabilities are considered at the amount that would be received to

sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement

date. The following methods and assumptions were used to estimate the fair values:

i) The fair value of cash and cash equivalents, trade receivables, current trade payables, current financial liabilities and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The Board considers that the carrying amounts of financial assets and financial liabilities recognised at cost/ amortised cost in the financial statements approximates their fair values.

ii) Non Current borrowing has been contracted at floating rates of interest, which are reset at short intervals. Fair value of floating interest rate borrowings approximates their carrying value.

iii) Investments in liquid and short-term mutual funds are measured using quoted market prices at the reporting date multiplied by the quantity held.

iv) Valuation of Beneficial Interest in Power Trust has been arrived by fair valuing its assets less liabilities. Assets of Power Trust mainly consist of quoted and unquoted investments. Quoted investments are valued at prevailing market rate. Unquoted investments are fair valued by adopting Discounted Free Cash Flow method (DCF) and Net Asset Value (NAV) approach. The DCF method estimates the cash flows for each financial period included in the period for projections and discounts this to its present value at an appropriate weighted average cost of capital (WACC). Under NAV approach Fair Value of unquoted equity instruments is computed based on the last audited financial statement of the respective companies. The valuation is based on the assumptions and estimates considered appropriate by the valuer.

v) Fair Value of unquoted equity instruments is Net Asset Value (NAV) computed based on the last audited financial statement of the respective companies.

FINANCIAL RISK MANAGEMENT

The Company''s business activities are exposed to a variety of financial risks - credit risk, liquidity risk, market risk and interest rate risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The risks are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and approves policies for managing each of these risks, which are summarized below:

Credit Risk

The Company is exposed to credit risk from its operating activities (primarily trade receivables). The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each consumer and the concentration of risk from the top few consumers.

The Company extends credit to consumers in normal course of business as per Regulation issued by West Bengal Electricity Regulatory Commission for regulatory business and as per terms of Power Purchase agreement (PPA) entered with DISCOMS for non regulatory business. Consumers outstanding are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivable as low as outstanding from non regulatory business is covered with PPA with government undertakings and in case of regulated business outstanding are as governed by rate regulated body of the state government and customers can not shift to other distribution licensee without clearing dues and obtaining "No objection certificate" from the Company. The Company has also taken advances and security deposit from its consumers, to mitigate the credit risk to an extent. (refer note no. 12.2)

Credit risk pertaining to regulatory receivables have been dealt with in note no. 18.1

Liquidity Risk

The company objective is to maintain optimum level of liquidity to meet its cash and collateral requirement at all times. The Company relies on Borrowing and internal accruals to meet its need for fund. The current committed lines of credit are sufficient to meet its short to medium term expansion needs

The Company has current financial assets which will be realised in ordinary course of business. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining headroom on its undrawn committed borrowing facilities at all times so that Company does not breach borrowing limits or covenants (where applicable ) on any of its borrowing facilities.

Market Risk

The Company does not have any material market risk.

Interest rate risk

(i) Interest rate risk exposure

Interest rate exposure of the Company is mainly on Borrowing from Banks, which is linked to marginal cost of fund based lending rate (MCLR) of bank''s lending and the Company does not foresee any risk on the same. Non Convertible Debentures were issued at fixed rate of interest and Inter Corporate Deposits were taken on fixed rate of interest.

Capital Management Risk Management

For the purpose of the Company''s capital management, capital includes issued equity capital, share capital suspense account and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and cash equivalents

IMPACT OF COVID 19 PANDEMIC:

The Company has taken into account the possible impact of COVID-19 pandemic in preparation of these standalone financial statements including but not limited to assessment of liquidity and going concern assumption, recoverable values of its financial and non-financial assets and impact on revenues. The Company has considered internal and external sources of information up to the date of approval of these standalone financial statements in making estimates of possible impact. As on the reporting date management believes there is no material impact on financial statements of the Company. Management will continue to monitor any material changes in future economic conditions and the impact thereof on the Company, if any.

These financial statements has been approved and adopted by Board of Directors of the Company in their meeting dated 11th June, 2021 for issue to the Shareholders for their adoption.


Mar 31, 2018

1. CRITICAL ACCOUNTING JUDGEMENTS, ASSUMPTIONS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

The preparation of the financial statements in conformity with IND AS requires management to make estimates, judgments and assumptions. These estimates, judgements and assumptions affect the application of accounting policies and the reported amount of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amount of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognised in the year in which the results are known / materialized and, if material, their effects are disclosed in the notes to the financial statements.

Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of assumptions in the financial statements have been disclosed below. The key assumptions and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year have also been discussed below:

(a) Regulatory Deferral Account Balances

Regulatory Deferral consists of Fuel and Power Purchase Cost Adjustment (FPPCA) and other accruals as per the Tariff Regulation as recognised in the accounts have been considered on the basis of available tariff order and as per the norms and formula prescribed in the regulations; this may vary requiring adjustments on determination by the regulator.

(b) Fair Valuation of Financial assets - Beneficial Interest in Power Trust

Beneficial Interest in Power Trust have been evaluated and considered based on the valuation of underlying securities and the projected inflows of the Investee entities as estimated by the respective management and evaluated by an independent valuer. Variation arising with respect to actual numbers in future may require adjustment effecting other comprehensive income.

(c) Income taxes

Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses during the estimation of the provision for income taxes. Accordingly, such provision has been made considering concession/allowances including those based on expert advice/judicial pronouncements.

(d) Contingencies

Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations as it is not possible to predict the outcome of pending matters with accuracy.

(e) Impairment loss on trade receivables

The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of impairment loss as a result of the inability of the debtors to make required payments. The Company bases the estimates on the ageing of the trade receivables balance, credit-worthiness of the trade receivables and historical write-off experience. If the financial conditions of the trade receivable vary, it may effect the amount of actual write-offs as estimated.

(f) Determining whether an arrangement contain leases and classification of leases

The determination of lease and classification of the service / hiring arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialised nature of the leased asset.

(g) Defined benefit obligation (DBO)

Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may impact the DBO amount and the annual defined benefit expenses.

2. AMALGAMATION OF INDIA POWER CORPORATION LIMITED

Pursuant to the scheme of arrangement and amalgamation (''the scheme'') sanctioned by the Hon''ble Calcutta High Court 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.

3 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 1,120,275,823 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 516,132,374 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 38,95,15,856 equity shares held by Power Trust. The above referred allotment and cancellation has not been given effect due to certain pending formalities with the Stock Exchanges in view of Interim Order relating to minimum public shareholding passed by SEBI. Pending this, a net amount of Rs, 6,041.43 lakhs, being the differential amount with respect to the equity shares to be allotted and to be cancelled as stated herein above, has continued to be shown as share capital suspense account.

In terms of the Orders dated January 27, 2017 and August 25, 2017 of Hon''ble Calcutta High Court, Power Trust transferred/ sold off through Offer for Sale 65,462,459 equity shares of the Company. Therefore, Power Trust as on March 31, 2018 holds 324,053,397 equity shares of the Company. The Hon''ble Calcutta High Court, vide its Order dated 18th May, 2018 has directed to dispose of the balance shares expeditiously.

4.2 In terms of the scheme, the Reserves arising pursuant to amalgamation constitutes 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.

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

7.3 The Company invested on 30th September 2016 to hold 3,811,506,509 shares of Meenakshi Energy Limited (MEL), representing 95.07% of MEL equity shares, which were fully pledged with SBI CAP Trustee Company Limited (SBI CAP) on behalf of the lenders. Pledge on these shares was invoked on 2nd May 2018. This matter is pending with Hon''ble XIV Additional Chief Judge cum Commercial court Hyderabad and is sub judice.

7.4 Pursuant to an agreement with Meenakshi Energy Limited (MEL), the Company has been allotted 100,234,046 equity shares of Rs, 10 each of MEL by conversion of its loan of Rs, 10,023.40 lakhs.

7.5 The Company has sold Compulsorily Convertible Preference shares (CCPS) of Hiranmaye Energy Limited (formerly known as India Power Corporation (Haldia) Limited) of Rs, 30,682.70 lakhs comprising of 306,827,040 CCPS of Rs, 10 each to Power Trust on December 29, 2017 along with encumbrances for which necessary approvals need to be obtained. Consequent to above Hiranmaye Energy Limited has ceased to be an associate.

9.2 Beneficial Interest in Power Trust represent investments in Company''s shares, associates and other unlisted companies net off borrowings and liabilities pertaining to investment division of erstwhile IPCL transferred to the said Power Trust in terms of the scheme of amalgamation (refer note 4). Considering that the Company''s shares are held by an independent trust and are meant for sale in terms of Hon''ble Calcutta High Court order the beneficial interest (including company''s shares) has been treated as financial assets and fair valuation as required in terms of Ind AS 109 has been carried out by an independent firm of chartered accountant and the resultant decrease of Rs, 6.20 lakhs (Rs, 22.80 lakhs as on March 31, 2017) in value thereof, has been adjusted from comprehensive income.

9.3 Refer Note 4.1 for Company''s shares transferred and held by Power Trust.

10.1 The Company has appointed a facilitation agent to facilitate identification of an Asset Reconstruction Company (ARC) who intends to acquire the financial assets (debt and the security interests) of a power project from its lenders and ensure appointment of the Company as exclusive resolution agent for the said financial asset. In terms of the said arrangement, the Company has paid a security deposit of Rs, 4,205.55 lakhs and maintenance amount of Rs, 598.44 lakhs including Rs, 191.12 lakhs paid during the year to the facilitation agent to facilitate the ARC to procure the financial assets of the said project. The security deposit and other amounts recoverable from the facilitation agent are secured with the exclusive charge on certain receivables of the facilitation agent from the ARC. Similarly in terms of an arrangement arrived at with an ARC, the Company has been appointed as resolution agent for resolution of the financial assets (loan and the security interests) towards a power project acquired/ to be acquired by the said ARC from lenders. Pending completion of the transaction and settlement with the lenders by ARC, further maintenance amount of Rs, 605.89 lakhs including Rs, 159.39 lakhs paid during the year has been paid as part of recoveries in this connection. Consequential adjustments shall be carried out by the Company on resolution of financial assets and shall be accounted for on determination of amount thereof.

12.1 Secured by security deposits received from the respective consumers.

12.2 The Company extends credit to consumers in normal course of business as per Regulation issued by West Bengal Electricity Regulatory Commission for regulatory business and as per Power Purchase Agreements (PPA) entered with DISCOMs for non-regulatory business. Consumer''s outstanding balances are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivable as low as outstanding from non-regulatory business is covered with PPA with government undertakings and in case of regulated business outstanding are as governed by rate regulated body of the state government and customers cannot shift to other distribution licensee without clearing dues and obtaining "No objection certificate" from the Company. The Company has also taken advances and security deposit from its consumers, to mitigate the credit risk to an extent.

12.3 Refer note 27 for charge against the outstanding amount.

12.4 Movement in Allowance for bad and doubtful debt

16.1 The lease of Chinakuri Power Station (CPS) with Eastern Coal Fields Limited (ECL) has expired on March 31, 2012 and in terms of lease agreement ECL is required to take over all assets at respective Written Down Value as on the date of termination of the lease. In terms of the arbitration order passed by Arbitration Tribunal, handing / taking over of vacant and peaceful possession of CPS has been completed on October 6, 2016, and thereby the resultant amount of Rs, 2,468.10 lakhs has been shown as recoverable from ECL.

16.2 The Company''s claim / counter claim from ECL with respect to above and ECL''s claim against the Company in this respect are under arbitration pursuant to the order of Hon''ble Supreme Court of India. Adjustment in this respect will be given effect to as and when determined.

16.3 Receivable from Power Trust represents amount recoverable against sale of Compulsorily Convertible Preference Shares during the year (refer note 7.5) and Fully and Compulsorily Convertible Debenture of Hiranmaye Energy Limited (formerly known as India Power Corporation (Haldia) Limited) to Power Trust net of loan of Rs, 30,600.00 lakhs taken from India Power (Tuticorin) Private Limited, which in terms of an agreement dated March 31, 2017 has been assigned to said Trust.

4. Tariff regulations, risks and uncertainties

In the State of West Bengal tariff for electricity are determined by West Bengal Electricity Regulatory Commission (WBERC/ Commission).

a) Multi year tariff (MYT) proposal giving therein details for appropriate capital structure to meet the capital investment plan with details of cost of financing including interest cost on debt and return on equity, expected sales for the years and the ''Annual Revenue Requirement'' (ARR) covering both variable and fixed cost is submitted to WBERC. Commission examines the MYT proposals thereafter and tariff is determined for different categories of consumers. At the end of the financial year, "Annual Performance Review" (APR) petition for fixed cost and Fuel and Power Purchase Cost Adjustment (FPPCA) for variable cost is submitted to WBERC. WBERC reviews cost incurred under two categories as defined in Tariff regulation as "Controllable" and "Uncontrollable". In case of Uncontrollable cost all increase are allowed on actual basis and for Controllable cost, the commission may disallow any increase if these are not considered to be justifiable.

b) The tariff regulation prescribes various normative operational and financial parameters for the Company. Any variation thereof may lead to disallowances. The Company is exposed to regulatory risk to the extent accruals are disallowed on assessment.

c) As per the Tariff Regulation any increase in variable cost is allowed to be recovered from consumers based on formula prescribed in the tariff regulation for " Fuel and Power Purchase Cost Adjustment" (FPPCA) as ''monthly variable cost adjustment'' (MVCA). FPPCA recoverable/ refundable, reliability incentive etc is accounted for as regulatory income/(expense) in the statement of Profit and Loss.

d) Regulatory deferral balances relate to FPPCA and Reliability incentives created on the basis of latest declared tariff order. Accruals on account of FPPCA and reliability incentives etc are recognised in books as per formula prescribed in Tariff Regulation Reversal/ accrual are carried out in the year in which Tariff, FPPCA and APR orders are received. Recovery of the regulatory deferral balances are carried out in the manner and instalments as allowed by WBERC.

18.2 Payable on account of FPPCA of Rs, 1,936.51 lakhs for the year has been recognised on the basis of formulae prescribed under the applicable Tariff Regulations, and is net of Rs, 912.32 lakhs provisionally receivable from consumers on account of under recovery of fixed costs. The Company is entitled for incentive and gains including incentive for reliability in power supply and accordingly based on applicable norms as per Tariff regulation, Rs, 3,539.86 lakhs have 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.

20.1 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 ownership of the Company, such contribution are being treated as Capital Reserve.

20.2 Reserve arising on amalgamation of Associated Power Company Limited with the Company in the year 1978 has been shown as other capital reserve.

20.3 Debenture Redemption Reserve is required to be created out of the profits available for payment of dividend in terms of Section 71 of the Companies Act, 2013 which is equal to 25% of the face value of the debentures issued and outstanding. The reserve will be released on redemption of the debentures.

20.4 (a) The General reserve is created from time to time by

appropriating profits from retained earnings at the discretion of the Company. As the general reserve is created by a transfer from one component of equity to another, and accordingly it is not reclassified to the Statement of profit and loss.

(b) General reserve include Rs, 56,887.09 lakhs being General reserve of amalgamating company in terms of Note 4. Further, reserve of Rs, 20,079.84 lakhs arising on amalgamation as stated in note 4.2 has also been included therein.

20.5 Reserve for unforeseen exigencies reserve are created in terms of the Tariff Regulation issued by West Bengal Electricity Regulatory Commission. The sum appropriated to ''Reserve for unforeseen exigencies'' are to be invested in specified securities and financial instruments (fixed deposit) at Nationalised bank. The interest accrued from such investment is reinvested and kept under - ''Reserve for unforeseen exigencies Interest fund''. The aforesaid reserves or fund shall be drawn upon only to meet such charges as the Commission may approve.

20.6 Retained Earnings generally represent the undistributed profits /amount of accumulated earnings of the Company.

20.7 Dividend Distribution

The amount that can be distributed by the Company as dividends to its equity shareholders is determined considering the requirements of the Companies Act, 2013 and the dividend distribution policy of the Company.

On August 12, 2017 a dividend pertaining to the financial year 2016-2017 of Rs, 0.05 per equity shares aggregating to Rs, 228.83 Lakhs and the dividend distribution tax of Rs, 47.14 lakhs has been approved for payment to equity shareholders of the Company.

In respect of the year ended March 31, 2018, the Board of Directors has recommended a dividend of Rs, 0.05 per share to be paid on fully paid equity shares. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements.

20.8 (a) OCI represent actuarial gains and losses on defined

benefit obligations and

(b) The Company has elected to recognise changes in the fair value of certain investments in equity instruments in other comprehensive income. This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are disposed. This will not be reclassified to statement of Profit and Loss.

20.9 Refer Statement of Changes in Equity for movement in balances of reserves.

21.1 (a) Includes 10.75% Secured Redeemable Non-Convertible

Debentures aggregating to Rs, 5,910.35 lakhs (Rs, 7,848.72 lakhs as on March 31, 2017) 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 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 1,731.82 sq mtr land at Iswarpura (Gujarat).

(b) Includes 12% Secured Redeemable Non-Convertible Debentures aggregating to Rs, 2,000 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 secured by mortgage of immovable properties consisting of land measuring 20.74 acres and building at Kaithi and Seebpore Mouza at Burdwan District including Bungalows, Quarters, Offices etc at Luchipur Receiving Station area of 56,633.94 sqft under Seebpore circle.

21.2 (a) Includes term loan of Rs, 2,209.68 lakhs (Rs, 2,649.12 lakhs

as on March 31, 2017) at 1 year MCLR plus 3.2% 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 and second pari passu charge on assets charged to secure Non-Convertible Debentures of Rs, 10,000 lakhs given in note 21.1 (a).

(b) Includes term loan of Rs, 6,177.44 lakhs (Rs, 6,819.43 lakhs as on March 31, 2017) at MCLR plus 1.9% and is repayable in 9 years from 10th September 2016 in equal quarterly instalments and is secured by pari passu charge of entire fixed assets pertaining to 220/33 kv sub-station at J.K Nagar, Burdwan, both present and future.

(c) Include loan of Rs, 22,655.99 lakhs (Rs, 22,687.31 lakhs as on March 31, 2017) availed as renewal cum sanction

of working capital facilities at three months MCLR plus 1.40% renewable every year for a period upto seven years and is secured by subservient charge on the movable fixed assets and current assets of the Company except such assets which are exclusively charged/ to be exclusively charged to any other bank or financial institution.

(d) Includes term loan of Rs, 4,000.00 lakhs (Rs, 4,750 lakhs as on March 31, 2017) at 1 year MCLR plus 1% repayable in 16 quarterly instalments with effect from 8th December

2016 and is secured by exclusive first charge on movable and other fixed assets of Dishergarh Receiving Station, Parbelia Substation and Dishergarh Power Station of the Company both present and future and negative lien on certain immovable fixed assets.

(e) Includes term loan of Rs, 682.05 lakhs (Rs, 745.74 lakhs as on March 31, 2017) at 1 year MCLR plus 2.75% repayable in 40 instalments with effect from 31st March 2016 and is secured by first pari passu charge with other financing banks/financial institution on the assets created/to be created out of the term loan, both present and future and exclusive fixed charge on certain fixed assets of the Company.

(f) Includes term loan of Rs, 592.71 lakhs (Nil as on March 31, 2017) at MCLR plus 1.25% and is repayable in 48 equal quarterly instalments with moratorium of 15 month from COD of the Project and is secured by hypothecation of the assets acquired out of the term loan i.e. 132 kv traction power to Eastern Railway Pandeweswar TS.

(g) Includes term loan of Rs, 41.91 lakhs (Nil as on March 31, 2017) at the rate of 8.80% repayable in 48 monthly instalments is secured against the asset purchased out of the Loan.

(h) Includes term loan of Rs, 59.05 lakhs (Nil as on March 31, 2017) at the rate of 8.76% repayable in 36 monthly instalments is secured against the asset purchased out of the Loan.

LE

22.1 Includes Rs, 2,430.98 lakhs (Rs, 2,168.78 lakhs as on March 31, 2017) 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.

25.1 Other adjustment represents MAT credit utilisation against regular income tax liability.

27.1 (a) Includes Rs, 2,992.30 lakhs (Rs, 2,981.49 lakhs as on March 31, 2017) secured by first pari passu charge on current assets both present and future and second pari-passu charge on fixed assets of the Company charged against Non-Convertible Debentures of Rs, 10,000 lakhs as given in note 21.1 (a).

(b) Includes Rs, 2,173.99 lakhs (Rs, 2,652.70 lakhs as on March 31, 2017) secured by first charge, ranking pari passu on current assets both present and future..

(c) Include Rs, 1,275.43 lakhs (Rs, 2,894.66 lakhs as on March 31, 2017) secured by first pari passu charge on current assets both present and future.

(d) Include Rs, 1,212.93 lakhs (Rs, 100.64 lakhs as on March 31, 2017) 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.

27.2 Includes Rs, 2,500 lakhs (Rs, 2,500 lakhs as on March 31, 2017) towards working capital demand loan repayable after 6 months from disbursement i.e. January 5, 2018 and is secured by first pari passu charge on current assets of the Company both present & future.

42(c) The Company had given Corporate Guarantee on 23rd September, 2016 in favour of lenders of Meenakshi Energy Limited (MEL) for the loan amount Rs, 281,836.43 lakhs (Rs, 284,484.92 lakhs as on March 31, 2017) subject to WBERC approval. WBERC has declined the approval vide their letter dated November 10, 2017, which has been accordingly intimated to the lenders. Accordingly the lenders of MEL were informed that the Corporate Guarantee given earlier is void.

Lenders of MEL on 20th December, 2017 demanded Rs, 93.58 crores from IPCL against the Corporate Guarantee which is sub-judice. 42(d) Corporate guarantees given in 42.1 (f) and 42 (c) above are in the nature of insurance contract.

43 Capital work in progress including contributory jobs includes cost of equipments and other civil and construction cost amounting to Rs, 3,656.34 lakhs (Rs, 1,414.68 lakhs as on March 31, 2017) for ongoing projects and pre-operative expenses as detailed below. These are allocated to respective assets on capitalisation.

5. IN THE CAPACITY OF LESSEE

44.1 Certain premises has been obtained on operating lease. The term for premises is 1-3 years and is renewable as per mutual agreement.

44.2 The Company has taken certain plant and machinery on an operational lease basis.

Significant features of aforesaid lease arrangements are as follows:

(i) The Company will pay the lease rent over the lease period. The lease rent is calculated 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.

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

44.5 The Company has recognised an amount of Rs, 4,388.96 lakhs (previous year Rs, 4,767.43 lakhs) towards lease rent (Refer note 35) and Rs, 4.42 lakhs (previous year Rs, 4.37 lakhs) for rent of premises (Refer note 39) for the year.

6. In the Capacity of Lessor

The Company had certain operating lease arrangements for office premises for 5 years, which has been terminated during the year. In respect of such arrangements, lease earning for the year aggregating to Rs, 5.54 lakhs (Previous year Rs, 13.35 lakhs) have been recognised in the Statement of Profit and Loss.

7. RELATED PARTY DISCLOSURES

Related parties have been identified in terms of Ind AS 24 on "Related Party Disclosure" as listed below : List of Related Parties where control exists

India Power Corporation (Bodhgaya) Limited Wholly owned Subsidiary

IPCL Pte. Ltd. Wholly owned Subsidiary

IPCL Power Trading Private Limited Subsidiary

India Power Green Utility Private Limited Wholly owned Subsidiary

Matsya Shipping & Ports Private Limited Wholly owned Subsidiary w.e.f. 19th February 2016 and Joint

Venture w.e.f. 27th March 2017

Meenakshi Energy Limited Subsidiary w.e.f. 30th September 2016

Hiranmaye Energy Limited (formerly known as India Power Subsidiary upto 30th March 2017 and Associate w.e.f.

Corporation (Haldia) Limited) 31st March 2017 upto 29th December 2017

India Uniper Power Services Private Limited Wholly owned Subsidiary from 2nd August 2016 to 5th January

2017 and Joint Venture w.e.f. 6th January 2017

Edison Power Limited Subsidiary of IPCL Pte. Limited upto 27th June, 2017

PL Sunrays Power Limited Subsidiary of India Power Green Utility Private Limited w.e.f.

23rd February, 2017

PL Solar Renewable Limited Subsidiary of India Power Green Utility Private Limited w.e.f.

23rd February, 2017

PL Surya Vidyut Limited Subsidiary of India Power Green Utility Private Limited w.e.f.

23rd June, 2017

Mr. Hemant Kanoria Chairman & Non Executive Director

Mr. Raghav Raj Kanoria Managing Director w.e.f. 1st June, 2017

Mr. Sunil Kanoria Non - Executive Director up to 11th August, 2017 &

Vice - Chairman w.e.f. 12th August, 2017

Mr. Jyoti Kumar Poddar Non - Executive Director

8. RELATED PARTY DISCLOSURES (CONTD.)

Mr. Nand Gopal Khaitan Independent Director

Mr. Amit Kiran Deb Independent Director

Mr. Debi Prasad Patra Independent Director

Mr. Tantra Narayan Thakur Independent Director

Mr. S. Sundareshan Independent Director

Ms. Dipali Khanna Independent Director

Mr. Asok Kumar Goswami Whole time Director

Mr. Shrirang Karandikar Chief Executive Officer up to 31st August, 2017

Mr. Sanjeev Seth Chief Executive Officer w.e.f. 1st September, 2017

Mr. Laxmi Narayan Mandhana Chief Financial Officer upto 18th July, 2016

Mr. Sushil Kr. Agarwal Chief Financial Officer w.e.f. 6th December, 2016

Mr. Prashant Kapoor Company Secretary

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, 20.00 lakhs. Vesting occurs upon completion of five years of service.

The weighted average duration of the defined benefit obligation as on March 31, 2018 is 7 years (March 31, 2017 6.65 years).

Post Retirement Obligation - 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 LIC. 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.

The weighted average duration of the defined benefit obligation as on March 31, 2018 is 1 year (March 31, 2017 1.83 years).

Post Retirement Obligation -Lump sum payment in lieu of Pension (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 weighted average duration of the defined benefit obligation as on March 31, 2018 is 5 years (March 31, 2017 9.35 years).

During the year ended March 31, 2018 and March 31, 2017 there were no transfer between level 1, level 2 and level 3 fair value measurement.

b) Fair Value Technique

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values:

(i) The fair value of cash and cash equivalents, trade receivables, current trade payables, current financial liabilities and current borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The Board considers that the carrying amounts of financial assets and financial liabilities recognised at cost/amortised cost in the financial statements approximates their fair values.

(ii) Non-current borrowing has been contracted at floating rates of interest, which are reset at short intervals. Fair value of variable interest rate borrowings approximates their carrying value of such non-current borrowings approximates fair value subject to adjustments made for transaction cost.

(iii) Investments in liquid and short-term mutual funds are measured using quoted market prices at the reporting date multiplied by the quantity held.

50.2 Fair Value Hierarchy (Contd.)

(iv) Valuation of Beneficial Interest in Power Trust has been arrived by adopting Discounted Free Cash Flow method (DCF) and Profit Earning capacity value method (PECV) with respect to investment held by them. Due weightage has been given by the valuer to the methods adopted. The DCF method estimates the cash flows for each financial period included in the period for projections and discounts this to its present value at an appropriate weighted average cost of capital (WACC). Under PECV method, the equity is valued by multiplying the future maintainable earnings by an appropriate Price / Earnings (P/E) multiple. The valuation is based on the assumptions and estimates considered appropriate by the valuer.

(v) Fair Value for valuation of unquoted equity instruments is arrived at historical Net Asset Value (NAV) based on the financial statements of the respective companies.

10.FINANCIAL RISK MANAGEMENT

The Company''s business activities are exposed to a variety of financial risks - credit risk, liquidity risk and market risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The risks are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and approves policies for managing each of these risks, which are summarized below:

011 Credit Risk

The Company is exposed to credit risk from its operating activities (primarily trade receivables). The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each consumer and the concentration of risk from the top few consumers.

The Company extends credit to consumers in normal course of business as per Regulation issued by West Bengal Electricity Regulatory Commission for regulatory business and as per terms of Power Purchase agreement (PPA) entered with DISCOMS for non-regulatory business. Consumers outstanding are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivable as low as outstanding from non-regulatory business is covered with PPA with government undertakings and in case of regulated business outstanding are as governed by rate regulated body of the state government and customers cannot shift to other distribution licensee without clearing dues and obtaining "No objection certificate" from the Company. The Company has also taken advances and security deposit from its consumers, to mitigate the credit risk to an extent. (refer note no. 12.2)

Credit risk pertaining to regulatory receivables have been dealt with in note no. 18.1

12 Liquidity Risk

The Company objective is to maintain optimum level of liquidity to meet its cash and collateral requirement at all times. The Company relies on borrowing and internal accruals to meet its need for fund. The current committed lines of credit are sufficient to meet its short to medium term expansion needs.

The table provides undiscounted cash flow towards non -derivative financial liabilities and net settled derivative financial liabilities into relevant maturity based on the remaining period at balance sheet date to contractual maturity date.

In terms of loan agreement the Company is required to fulfil specified covenants including maintaining debt service and other ratios, and failing which the lender has option to call back the loan.

The Company has current financial assets which will be realised in ordinary course of business. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining headroom on its undrawn committed borrowing facilities at all times so that Company does not breach borrowing limits or covenants (where applicable ) on any of its borrowing facilities.

13 Market Risk

The Company does not have any material market risk.

14 Interest rate risk

(i) Interest rate risk exposure

Interest rate exposure of the Company is mainly on Borrowing from Banks, which is linked to marginal cost of fund based lending rate (MCLR) of bank''s lending and the Company does not foresee any risk on the same. Non-Convertible Debentures were issued at fixed rate of interest and Inter Corporate Deposits were taken on fixed rate of interest.

15 Capital Management

Risk Management

For the purpose of the Company''s capital management, capital includes issued equity share capital, share capital suspense account and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder''s value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

Refer note 20.4 (b) for General Reserve arising on amalgamation which is included for arriving at total equity

16 These financial statements has been approved and adopted by Board of Directors of the Company in their meeting dated May 29, 2018 for issue to the shareholders for their adoption.

17 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, 2017

1. Includes Rs, 63.88 lakhs (previous yearRs, 32.36 lakhs), expenditure incurred towards Corporate Social Responsibility.

2.//Exceptional items of Rs, 4,673.56 lakhs is on account of receipt of Rs, 26,734 lakhs for completion of acquisition of shares of Meenakshi Energy Limited (a subsidiary company) and expenses on account of waiver of Rs, 862 lakhs against Late payment surcharge receivable from Rajasthan Discom, Rs, 11,630.27 lakhs of interest receivable from IPC(H)L and Rs, 9,568.17 lakhs regulatory accruals, being no longer recoverable. The above items being material and unrelated to normal operations have been categorised and disclosed as exceptional items.

3. (c) Corporate guarantees given in 43.1 (f) and (h) above are in the nature of insurance contract.

44//Capital work in progress including contributory jobs includes cost of equipments and other civil and construction cost amounting to Rs, 1,414.68 lakhs (Rs, 888.30 lakhs as on 31.03.2016 and Rs, 1,110.44 lakhs as on 01.04.2015) for ongoing projects and pre-operative expenses as detailed below. These are allocated to respective assets on capitalisation.

4.// 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.

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

6. The Company has recognized an amount of Rs, 4,767.43 lakhs (previous year Rs, 5,480.18 lakhs) towards lease rent (note 36) and Rs, 4.37 lakhs (previous yearRs, 3.89 lakhs) for rent of premises (note 40) for the year.

7. 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 mills where in lease rent is contingent on revenue receipt.

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

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

8. 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,13.35 lakhs (Previous yearRs, 12.78 lakhs) have been recognized in the Statement of Profit and Loss.

9.// RELATED PARTY DISCLOSURES Related parties have been identified in terms oflnd As 24 on "Related Party Disclosure" as listed below : List of Related Parties where control exists

Name of the Related Party Relationship

India Power Corporation (Bodhgaya) Limited Wholly owned Subsidiary

IPCL Pte Ltd. Wholly owned Subsidiary

IPCL Power Trading Pvt. Limited Subsidiary

India Power Green Utility Pvt. Ltd. Wholly owned Subsidiary w.e.f. 30th December, 2015

Matsya Shipping and Ports Pvt. Ltd. Wholly owned Subsidiary w.e.f. 19th February, 2016 and Joint Venture w.e.f. 27th

March, 2017

Meenakshi Energy Limited Subsidiary w.e.f. 30th September, 2016

India Power Corporation (Haldia) Limited Subsidiary upto 30th March, 2017 and Associate w.e.f. 31st March, 2017

India Uniper Power Services Pvt Ltd Subsidiary from 2nd August, 2016 to 5th January, 2017and Joint Venture w.e.f. 6th

January, 2017

Edison Power Limited Subsidiary oflPCL Pte Ltd. w.e.f. from 25th August, 2015

PL Sunrays Limited Subsidiary oflndia Power Green Utility Pvt. Ltd. w.e.f. 23rd February, 2017

PL Solar Renewable Limited Subsidiary oflndia Power Green Utility Pvt. Ltd. w.e.f. 23rd February, 2017

Key Management Personnel Relationship

Mr. Hemant Kanoria Chairman & Non Executive Director

Mr. Sunil Kanoria Non - Executive Director

Mr. Jyoti Kumar Poddar Non - Executive Director

Mr. Nand Gopal Khaitan Independent Director

Mr. Amit Kiran Deb Independent Director

10.// RELATED PARTY DISCLOSURES (CONTD.)

Name of the Related Party Relationship

Mr. Debi Prasad Patra Independent Director

Mr. Tantra Narayan Thakur Independent Director

Mr. S. Sundareshan Independent Director

Ms. Dipali Khanna Independent Director

Mr. Asok Kumar Goswami Whole time Director

Mr. Shrirang Karandikar Chief Executive Officer

Mr. Laxmi Narayan Mandhana Chief Financial Officer up to 18th July, 2016

Mr. Sushil Kr. Agarwal Chief Financial Officer (from 6th December, 2016)

Mr. Nitin Bagaria Company Secretary (up to 13th August, 2015)

Mr. Prashant Kapoor Company Secretary (from 14th August, 2015)

11.//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.

The weighted average duration of the defined benefit obligation as at March 31, 2017 is 6.65 years (March 31, 2016 is 7.76 years).

Post Retirement Obligation - 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 LIC. 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.

The weighted average duration of the defined benefit obligation as at March 31, 2017 is 1.83 years (March 31, 2016 is 2.75 years).

Post Retirement Obligation - Lump sum payment in lieu of Pension (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 weighted average duration of the defined benefit obligation as at March 31, 2017 is 9.35 years (March 31, 2016 is 9.51 years).

*IALM- Indian Assured Lives Mortality

These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year-end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management''s historical experience.

12.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.// During the year Rs, 231.46 lakhs has been recognized as expenditure towards defined contribution plans of the company (previous Year Rs, 256.06 lakhs).

14.// 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 Indian Accounting Standard (Ind AS) 108 "Operating Segments" is not required.

b) Fair Value Technique

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an

asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

i) The fair value of cash and cash equivalents, trade receivables, current trade payables, current financial liabilities and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The Board considers that the carrying amounts of financial assets and financial liabilities recognized at cost/ amortized cost in the financial statements approximates their fair values.

ii) Long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Fair value of variable interest rate borrowings approximates their carrying value of such long-term debt approximates fair value subject to adjustments made for transaction cost.

iii) Investments in liquid and short-term mutual funds are measured using quoted market prices at the reporting date multiplied bythe quantity held.

iv) Valuation of beneficial interest in Power Trust has been arrived by adopting Discounted Free Cash Flow method (DCF) and Profit Earning capacity value method (PECV) with respect to investment held by them. Due weightage has been given by the valuer to the methods adopted. The DCF method estimates the cash flows for each financial period included in the period for projections and discounts this to its present value at an appropriate weighted average cost of capital (WACC). Under PECV method, the equity is valued by multiplying the future maintainable earnings by an appropriate Price/Earnings (P/E) multiple. The valuation is based on the assumptions and estimates considered appropriate by the valuer.

v) Fair Value for valuation of unquoted equity instruments is arrived at historical Net Asset Value (NAV) based on the financial statements ofthe respective companies.

c) Significant Unobservable Inputs Used in Level 3 Fair Values

As at 31 March, 2017 Significant Unobservable Inputs Sensitivity of input to fair value measurement

(i) Fair valuation of unquoted equity Historical NAV IncreaseinbookvaluebylO%willhavea instruments positive impact of Rs, 3.73lakhs

Decrease in book value by 10% will have a negative impact of Rs, 3.73 lakhs

(ii) Fairvaluation of beneficial interest in Forecast Revenue Increase in revenue by 10% will have a Power Trust positive impact of Rs, 76,358 lakhs

Decrease in revenue by 10% will have a negative impact of Rs, 80,143 lakhs

Discount factor and P/E multiple Increase in discount rate by 1% will have a

positive impact of Rs, 17,458 lakhs Decrease in discount rate by 1% will have a negative impact of Rs, 15,500 lakhs

is covered with PPA with government undertakings and in case of regulated business outstanding are as governed by rate regulated body of the state government and customers can not shift to other distribution licensee without clearing dues and obtaining "No objection certificate" from the Company. The Company has also taken advances and security deposit from its consumers, to mitigate the credit risk to an extent.

Credit risk pertaining to regulatory receivables have been dealt with in note no. 19.1.

16. Liquidity Risk

The Company''s objective is to maintain optimum level of liquidity to meet its cash and collateral requirement at all times. The Company relies on borrowing and internal accruals to meet its need for fund. The current committed lines of credit are sufficient to meet its short to medium term expansion needs.

The table provides undiscounted cash flow towards non - derivative financial liabilities and net settled derivative financial liabilities into relevant maturity based on the remaining period at balance sheet date to contractual maturity date.

In terms of loan agreement the Company is required to fulfill specified covenants including more relating to maintaining debt service and other ratios, and failing which the lender has option to call back the loan.

The Company has current financial assets which will be realized in ordinary course of business. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining headroom on its undrawn committed borrowing facilities at all times so that Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

17. Market Risk

The Company does not have any material market risk.

18. Interest rate risk

(i) Interest rate risk exposure

Interest rate exposure of the Company is mainly on borrowing from banks, which is linked to prime lending rate of bank''s lending and the Company does not foresee any risk on the same. Non Convertible Debentures were issued at fixed rate of interest and Inter Corporate Deposits were taken on fixed rate of interest.

19. Capital Management Risk Management

For the purpose of the Company''s capital management, capital includes issued equity capital, share suspense account and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

Refer note 21.4 (b) for General Reserve arising on amalgamation which is included for arriving at total equity.

20.// FIRST TIME ADOPTION OF IND AS - RECONCILIATIONS

21. In terms of Ind AS 101, "First time adoption of Indian Accounting Standards" the required reconciliation of equity, other comprehensive income and cash flows with respect to the figures reported under previous GAAP are as given below:

22. First time adoption- Mandatory exceptions and optional exemptions Overall Principle

The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2015 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying certain items from previous GAAP to Ind AS as required under the Ind AS, and applying Ind AS in the measurement of recognized assets and liabilities. However, this principle is subject to certain mandatory exceptions and certain optional exemptions availed by the Company as detailed below:

Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

Impairment of Financial Assets

The Company has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognized in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind AS, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.

Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38.

Accordingly, the company has elected to measure all of its property, plant and equipment, intangible assets at their previous GAAP carrying value.

Ind AS 27 permits an entity to measure the investments in subsidiaries, joint ventures and associates at either cost or in accordance with Ind AS 109.

Accordingly, the company has elected to carry its investments in subsidiaries at deemed cost being carrying amount under previous GAAP on the transition date.

Determining whether an arrangement contains a lease

The Company has applied Appendix C of Ind AS 17 for determining whether an arrangement contains a lease at the transition date on the basis of facts and circumstances existing at that date.

23. Explanatory notes to Balance Sheet reconciliations

Note 1: Fairvaluation of investments

Under previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value.

Note 2: Financial assets and Financial liabilities

Under the previous GAAP, interest free lease security deposits, loans & advances that are refundable in cash and amounts recoverable from customers in cash are recorded at their transaction value. Under Ind AS, all such financial assets are required to be recognized initially at fair value and subsequently at amortized cost. Accordingly, the company has fair valued these financial assets under Ind AS. Difference between the fair value and transaction value has been recognized according to the nature of these financial assets.

Under the previous GAAP, noncurrent trade payables and other long term liabilities payable to suppliers or refundable to consumers are recorded at their transaction value. Under Ind AS, all such financial liabilities are required to be recognized initially at fair value and subsequently at amortized cost. Accordingly, the company has fair valued these financial liabilities under Ind AS. Difference between the fair value and transaction value has been recognized according to the nature of these financial liabilities.

Note 3: Borrowings

Under previous GAAP, entire amount of transaction costs in respect of certain borrowings were capitalized or charged off to statement of profit and loss. Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method.

Note 4: Property, Plant and Equipment

Under the previous GAAP, transaction costs that are directly attributable to the acquisition, construction or production of a qualifying asset are included in the cost of that asset. Under Ind AS, the unamortized amount of upfront fee as at the date of the transition should be adjusted from the carrying amount of loan to arrive at its amortized cost. In the current case, the Company has already capitalized the processing cost as a part of the cost of the fixed assets. As a consequence, to restate the carrying amount of loan in accordance with paragraph 10 of Ind AS 101, the carrying amount of fixed assets as at the date of the transition have been reduced by the amount of processing cost (net of cumulative depreciation impact). The difference between the adjustments to the carrying amount of loan and to fixed assets, respectively has been recognized in the retained earnings as at the date of the transition.

Note 5: Long Term Land Leases

Under previous GAAP, land leases were classified under the Fixed Assets as Leasehold Land. Ind AS 17 deals specifically with land leases. Land leases are classified as finance or operating leases based on the general criteria laid down in the standard. On the basis of lease classification, land leases where the significant risk and rewards have been transferred to the Company has been classified as finance lease.

Note 6: Deferred tax

The application of Ind AS 12 approach has resulted in recognition of deferred tax on temporary differences which was not required under previous GAAP including those resulting due to transitional adjustments. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity. Ind AS 12 requires classification of MAT credit as Deferred tax asset. Accordingly, the Company has reclassified MAT credit to Deferred tax asset as at the transition date. This has no resulting impact on equity or net profit.

Note 7: Proposed dividend

Under the previous GAAP, dividends proposed by the board of directors after the Statement of Financial Position date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting.

Note 8: Retained Earnings

Retained earnings has been adjusted consequent to the above Ind AS transition adjustments.

Note 9: Remeasurements of post-employment benefit obligations

Both under previous GAAP and Ind AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under previous GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognized to retained earnings through OCI. This has no resulting impact on equity.

Note 10: Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes remeasurements of defined benefit plans and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

24.// These financial statements have been approved and adopted by Board of Directors of the Company in their meeting dated May 29, 2017 for issue to the shareholders for their adoption.


Mar 31, 2016

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.

2. 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 1,120,275,823 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 516,132,374 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 149,087,194 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.

3 In terms of the scheme, the Reserves arising pursuant to amalgamation constitutes 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.

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

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

6 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.

7. There is no movement in the number of shares outstanding and the amount of Share Capital as at 31st March, 2016 and 31st March, 2015.

8. 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.

9. 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.

10. 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 ownership of the Company, such contribution are being transferred to Capital Reserve.

11. Contingency 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 had been transferred to General Reserve.

12. Reserve for unforeseen exigencies and unforeseen exigencies interest reserve has been created in terms of tariff regulations.

13. (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 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 1,731.82 sq mtr land at Iswarpura (Gujarat).

14. (b) Includes 12% Secured Redeemable Non Convertible Debentures aggregating to Rs. 2,000 lakhs redeemable in five installments at the end of

15. 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.

16. In terms of Shareholder''s resolution for the respective year, dividend of Rs. 185.70 lakhs (including income tax of Rs 31.41 lakhs), out of total proposed dividend of Rs. 949.59 lakhs (including income tax Rs. 160.62 lakhs) was approved. Accordingly the remaining amount of Rs. 763.89 lakhs (including income tax of Rs. 129.21 lakhs thereon) has been written back.

17. General Reserve include Rs. 56,887.09 lakhs being General reserve of amalgamating Company in terms of scheme dealt with in Note 2. 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 Bungalows, Quarters, Offices etc at Luchipur Receiving Station area of 56,633.94 sqft under Seebpore circle.

18. (a) Includes term loan of Rs. 3,111.11 lakhs (previous year Rs. 3,555.56 lakhs) 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 installments 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 and second pari passu charge on assets charged to secure Non Convertible Debentures of Rs. 10,000 lakhs given in Note 5.1 (a).

19. (b) Includes term loan of Rs. 7,493 lakhs (previous year Rs. 7,493 lakhs) at bank base rate plus 2.5% and is repayable in 9 years from revised date i.e. 10th September 2016 in equal quarterly installments and is secured by pari passu charge of entire fixed assets pertaining to 220/33 kV sub-station at J.K Nagar, Burdwan, both present and future.

20. (c) Includes term loan of Rs. 1,999.99 lakhs (previous year Rs. 3,999.99 lakhs) at bank base rate plus 0.75% and is repayable in nine quarterly installment 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.

21. (d) Includes term loan Rs. Nil lakhs (previous year Rs. 16.84 lakhs) at the rate of 10.25% repayable in 35 monthly installments of Rs. 2.49 lakhs each and is secured against asset purchased out of the loan.

22. (e) Includes loan of Rs. 22,705.03 lakhs (previous year Rs. Nil) availed as renewal cum sanction of working capital facilities at bank base rate plus 1.15% renewable every year for a period up to seven years and is secured by subservient charge on the movable fixed assets and current assets of the Company except such assets which are exclusively charged/to be exclusively charged to any other bank or financial institution.

23. (f) Includes term loan of Rs. 5,000 lakhs (previous year Rs. Nil) at bank base rate repayable in 16 quarterly installments with effect from 21st December 2016 and is secured by exclusive first charge on movable and other fixed assets of Dishergarh Receiving Station, Parbelia Substation and Dishergarh Power Station of the Company both present and future and negative lien on certain immovable fixed assets.

24. (g) Includes term loan of Rs. 886.28 lakhs (previous year Rs. Nil) at the rate of 11.45% repayable in 40 installments with effect from 31st March 2016 and is secured by first pari passu charge with other financing banks/financial institution on the assets created/to be created out of the term loan, both present and future and exclusive fixed charge on certain fixed assets of the Company.

25. (a) Term loan of Rs. 7,000 lakhs (previous year Rs. 7,000 lakhs) 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 pari passu charge on assets excluding the assets having exclusive charge to other lenders.

26 (b) Term loan of Rs. 8,000 lakhs (previous year Rs. 8,000 lakhs) at the rate of 13.50% repayable in 24 quarterly instalments after four years from the date of disbursement i.e. 15th October, 2014 and is to be secured by pari passu charge on assets excluding the assets having exclusive charge to other lenders.

27. (a) Includes Rs. 2,808.80 lakhs (previous year Rs. 470.76 lakhs) secured by first pari passu charge on current assets both present and future and second parri-passu charge on fixed assets of the Company charged against Non Convertible Debentures of Rs. 10,000 lakhs as given in Note 5.1 (a).

28. (b) Includes Rs. 3,646.31 lakhs (previous year Rs. 2,164.92 lakhs) secured by first charge, ranking pari passu on current assets both present and future.

29. (c) Includes Rs. 1,066.17 lakhs (previous year Rs. 130.39 lakhs) secured by first pari passu charge on current assets both present and future.

30. (d) Includes Rs. 707.85 lakhs (previous year Rs. 62.59 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.

31. (a) Includes Rs. 2,500 lakhs (previous year Rs. 5,000 lakhs) towards working capital demand loan, repayable after 6 months from disbursement i.e. 2nd January 2016 and is secured by first pari passu charge on entire current assets of the Company both present & future.

32. (b) Includes Rs. Nil lakhs (previous year Rs. 3,500 lakhs) towards working capital demand loan repayable after 92 days from disbursement i.e. 24th March 2015 and is secured by first pari passu charge on entire current assets of the Company.

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

34. 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. There are no delays in payment made to such suppliers. There is no overdue amount outstanding as at the Balance Sheet date.

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

36. Refer Note 29.5 (a) and 29.5 (b).

37. Gross Block and Net Block of buildings includes Rs. 331.79 lakhs and Rs. 262.75 lakhs (previous year Rs 329.43 lakhs and Rs 269.71 lakhs) respectively being building constructed on land not owned by the Company. The above amount includes Rs. Ill lakhs and Rs. 83.34 lakhs respectively (previous year Rs. Ill lakhs and Rs. 85.47 lakhs) in respect of leased premises matters whereof are subject to arbitration proceedings. (Refer Note 29.5).

38. Freehold land includes Rs. 4.09 lakhs (previous year Rs. 4.09 lakhs) for which title deeds are not held in the name of the Company.

39. (a) Consequent to investment in Compulsorily Convertible Preference Shares (CCPS), India Power Corporation [Haldia] Limited hereinafter referred to as IPC(H)L, as required, in terms of provision of the Companies Act 2013 has become subsidiary of the Company and has been so disclosed under Note 14, given hereinabove. However, the Company does not have any Equity Investment in IPC(H)L and therefore, as per professional advice received the accounts of IPC(H)L has not been considered for consolidation either as per Accounting Standard 21 on ''Consolidated Financial Statement'' or as per Accounting Standard 23 on ''Accounting for Investments in Associates in Consolidated Financial Statements''.

40. (b) Related party disclosure with respect to IPC(H)L has been made as an Associate (refer Note 29.8) in terms of Accounting Standard 18 on ''Related Party Disclosure''.

41. 306,454,224 number of CCPS amounting to Rs. 30,645.42 lakhs and 171,216,396 number of FCCD amounting to Rs. 17,121.64 lakhs have been pledged with lenders of IPC(H)L.

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

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

44 The Company has appointed a facilitation agent to facilitate identification of an Asset Reconstruction Company (ARC) who intends to acquire the financial assets (debt and the security interests) of a power project from its lenders and ensure appointment of the Company as exclusive resolution agent for the said financial asset. In terms of the said arrangement the Company has paid a security deposit of Rs. 2,550.00 lakhs with and maintenance amount of Rs. 239.40 lakhs to the facilitation agent to facilitate the ARC to procure the financial assets of the said project. The security deposit and other amounts recoverable from the facilitation agent are secured with the exclusive charge on certain receivables of the facilitation agent from the ARC. Similarly in terms of an arrangement arrived at with an (ARC), the Company has been appointed as resolution agent for resolution of the financial assets (loan and the security interest) towards a power project acquired/ to be acquired by the said ARC from a lender. Pending completion of the transaction and settlement with the lenders by ARC, maintenance amount of Rs. 256.50 lakhs has been paid as part of recoveries in this connection. The Security deposit of Rs. 2,550 lakhs and aggregate maintenance amount of Rs 495.90 lakhs has been shown as Loans and Advances. Consequential adjustments shall be carried out by the Company on resolution of financial assets and shall be accounted for on determination of amount thereof.

45. 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.

46. Secured by security deposits received from the respective consumers.

47. Includes Rs. 257.58 lakhs (previous year Rs. 267.45 lakhs) kept as margin money with bank and Rs. 405.75 lakhs (previous year Rs. 400.69 lakhs) kept with bank as lien against repayment of term loans.

48. Represents estimated recoverable on account of FPPCA, cost towards abandoned thermal power plant (refer Note 29.4.1) and other adjustments in terms of tariff regulations and orders. {refer Note 1 (i)}.

49. Include unamortised debenture related expense 219.72 270.33

50. Interest pertaining to project undertaken by IPC(H)L being recoverable as cost thereto, has been so considered for the purpose of these accounts.

51. Sale of energy include Monthly Variable Cost Adjustment (MVCA) of Rs. 4,575.06 lakhs and Fuel Purchase and Power Cost Adjustment (FPPCA) of Rs. 769.98 lakhs for the year on the basis of formulae prescribed under the applicable Tariff Regulations, and is inclusive of Rs. 1,267.42 lakhs provisionally receivable from consumers on account of under recovery of fixed costs. The Company is entitled to incentive for reliability in power supply and accordingly based on applicable norms as per Tariff regulation, Rs. 962.00 lakhs have been recognised. Sale is net of Rs. 1,206.00 lakhs and is inclusive of Income tax amounting to Rs. 1,543.77 lakhs to the extent assessed / paid in respect of earlier years and considered recoverable in future as per Tariff Regulation. Adjustments in these respects are carried out and give effect to from time to time based on the order of West Bengal Electricity Regulatory Commission or directions from appropriate authorities.

52. Interest income includes Rs. 44.02 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:

53. Purchase of Energy (in kWh) 782705968 866980120

54. 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.

55. Refer note 29.1.2 for Claim by one of the input energy supplier for arrear charges.

56. Capital work in progress includes cost of equipments and other civil and construction cost amounting to Rs. 256.69 lakhs for ongoing projects and pre-operative expenses as detailed below. These are allocated to respective assets on capitalization.

57. The Company had applied to WBIDC for 300 acres of land in October 2010 for setting up a Thermal Power Plant of 2 x 270 MW for supply in its distribution business. The Company received allotment of only 155.5 acres of land initially with balance land to be allotted at a later stage. The Company had initiated project development activities and appointment of Project Consultants, EPC Contractors, Construction of Boundary Wall have been undertaken and advance of Rs.2,828.26 lakhs was also given in earlier years.

In view of the change in Government decision and directive issued pursuant to that, the project had to be abandoned and land allotted for the same had to be surrendered to the Government. The cost incurred against the abandoned project (Note 29.4) and the advances given as above as per the legal advice received is claimable as adjustment to the tariff under Tariff Regulations. Accordingly Rs. 4,617.23 lakhs has been considered recoverable through Tariff Adjustment and steps have been taken to make necessary Claim before WBERC in this respect


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, 2011

1 Net sales/ income from operation includes Rs. 1124.16 lakhs, on account of additional liabilities for the period from 1st April 2007 to 31st March 2011 in terms of memorandum of settlement between the company and various workers unions for wage revision dated 25th February,2011 for which necessary petition has been submitted before the Hon’ble WBERC on 19th may 2011.

2 Effective 2004-05 power purchased from Damodar valley Corporation is accounted for on the basis of tariff rates charged by DVC on a provisional basis awaiting issuance of revised traded order by the Hon’ble Central Electricity Regulatory Commission for the year 2004-05 to 2010-11 in terms of the directors issued by the Hon’ble appellate Tribunal for Electricity . The Tariff fixed by CERC and the directors issued by the Hon’ble ATE has been challenged by DVC before than Hon’ble Supreme Court of India.

3 Gross sales of energy is net of i> FPPCA of Rs. 2228.87 lakhs for the year 2010-11 refundable to consumer on the basis of formulae prescribed under the applicable Tariff Regulations, which is inclusive of Rs. 949.84 lakhs provisionally refundable to consumers on account of over recovery of fixed costs and necessary adjustments there of will be made upon confirmation by the relevant authorities and ii> FPCA of Rs. 1463.13 lakhs for earlier years adjusted based on annual performance review order given effect to during year. Adjustments in these respect are carried out and given effect to from time to time based on the order of West Bengal Electricity Regulatory Commission or directors from appropriate authorities on the matter.

Additional employee cost of Rs. 1124.16 lakhs in pursuance of 'Memorandum of Settlement' of 25th February, 2011 has been considered realisable through Regulatory mechanism as part of tariff and has been recognised as income with a corresponding debit to sundry debtors.

Sundry Debtors include FPPCA Rs. 2595.11 recongnised as sale energy in the earlier years as per prescribed formulae by the Hon’ble WBERC awaiting final disposal by the relevant authorities.

4 Details of interest received/ accrued during the year on Reserve for unforeseen Exigencies- Interest in terms of Tariff Regulations, are given below:

5 Guarantees given on behalf of the company, as per the bank Certificates- Rs. 212.18 lakhs.

6 Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.4199.13 lakhs .

7 Contingent liability to the extent ascertainable and not provided for:

Demands of Sales Tax authorities against which the company's appeal is pending Rs. 4.00 lakhs

Amount refundable to the consumers Rs. 281.44 lakhs as per the Hon’ble WBERC's APR order for the year 2006-07 against which Company's appeal is pending before the Hon’ble ATE.

Claims against certain supplies not acknowledged as debt- Rs. 288.14 lakhs.

Other demands against which appeals are pending Rs.10.00 Lakhs .

8 Salaries and wages exclude amounts incurred for work for consumers Rs. 8.05 lakhs

9 Schedule 15 to the Accounts interalia includes in:

Coal Handling Charges Rs. 18.34 Lakhs under the head Fuel-

Raw water charges Rs. 4.48 lakhs under the head Consumption of stores

Ash Handling Charge Rs. 51.89 lakhs under the head Repairs and Maintenance- plant and Machinery

Payments to Contract Labour:

Rs. 4.89 lakhs under the head Repairs and Maintenance - Plant and Machinery

Rs.59.31 lakhs Under the head Repairs and maintenance- Building

10 Advances recoverable in cash or kind include Rs. 455.48 lakhs on account of unamortized debenture related expenses.

11 Employee Benefits:

12.1 Post Employment Defined Benefit Plans:

Gratuity

The company's gratuity scheme, as 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 make payments to vested employees on 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

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

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.

Lump sum payment

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.

12.2 The contribution to the defined plans expected to be made by the company during the annual period beginning after the balance sheet date is yet to be reasonably determined.

12.3 During the year Rs. 34.98 lakhs has been recognised as expenditure towards defined contribution plans of the Company .

13. During the year the company has recognised Entitlement for MAT credit of Rs. 149 lakhs based on the convincing evidence that the company is expected to pay normal tax within the credit entitlement period.

14. Exceptional Item represents profit arising from sale of certain long term investments.

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


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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