10online.mesco.in/documents/view_document.jsp?foldername=E...Sri M. Nagaraj - Director 10. Sri P....

10th

Annual Report 2011-2012

Mangalore Electricity Supply Company Limited

2


BOARD OF DIRECTORS

1. Sri S. Selvakumar, IAS - Chairman

2. Sri S. Sumanth - Managing Director

3. Sri H. Nagesh - Director (Tech)

4. Dr. Aditi Raja - Director

5. Sri N.S Channappa Gowda IAS - Director

6. Sri H.R. Nagendra - Director

7. Sri D. Basavaraju - Director

8. Sri V. Venkatashiva Reddy - Director

9. Sri M. Nagaraj - Director

10. Sri P. Rama Amin - Director

11. Sri G.K. Shadaksharappa - Director

Registered Office

Paradigm Plaza, A.B Shetty Circle, Mangalore – 575001

Bankers:

1. Syndicate Bank

2. State Bank of India

3. State Bank of Mysore

4. Canara Bank

5. Vijaya Bank

6. Corporation Bank

7. Punjab & Sindh Bank

8. UCO Bank

9. Indian Bank

10. Axis Bank

11. Karnataka Bank

Statutory Auditors

M/s. Ganesh & Sudhir, Chartered Accountants, Mangalore

Cost Auditors

M/s. Rao Murthy & Associates, Cost Auditors, Bangalore

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TABLE OF CONTENTS

1. Directors‟ Report…………………………………………………………….. 4

2. Addendum to the Directors‟ Report……………………………….............. 24

3. Auditors‟ Report………………………………………………………………. 29

4. Annexure to the Auditor‟s Report…………………………………………… 32

5. Comments of the Comptroller and Auditor General of

India on the Annual Accounts……………………………………… ……….. 35

6. Balance Sheet………………………………………………………. ………. 36

7. Statement of Profit & Loss ……………………………………...….. ……… 37

8. Cash Flow Statement………………………………………………... ……… 38

9. Significant Accounting Policies….……………………………………………. 39

10. Notes on Financial Statements……………………………………………….. 43

11. Vital Statistics ………………………………………………………………….. 85

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11. ¥ÀæªÀÄÄR CAQ CA±ÀUÀ¼ÀÄ .............................................................................. 183

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DIRECTORS’ REPORT FOR FY 2011-12

1. The Board of Directors herewith present the 10th Annual Report on the

business and operations of the Company along with the Audited Accounts for

the year ended 31st March, 2012.

2. With an annual turnover of about Rs. 1708.90 Crores and a committed pool

of 3953 employees the Company is serving 18.36 lakh Nos. of consumers

located in different parts of coastal and malnad areas in the four revenue

districts of Karnataka State, viz. Dakshina Kannada, Udupi, Shimoga and

Chikkamagalur.

3. At a glance the status of the Company as on 31st March 2012 is as follows:

Area of distribution and Supply (Sq. Km.) 26,222

Number of sub stations 220 KV, 110 KV, 66 KV (of KPTCL) 75

Number of 33 KV sub stations 33

Number of Distribution Transformers 37979

Length of LT Lines (in CKMs) 70672.73

Length of 11 KV Lines (in CKMs) 25968.73

Length of 33 KV Lines (in CKMs) 747.22

4. Consumer Base

As on 1st April 2011, the Company had a consumer base of 1752135 Nos. With the addition of 84,773 Nos. of new consumers during the year, the number of consumers at the end of the year March 2012 stood at 18,36,908 Nos., comprising of the following categories:

Tariff Description Total

LT -1 BJ/KJ 180560

LT-2 (a&b) Lighting & AEH 1221097

LT-3 Commercial 159818

LT-4 IP Set Installations 220728

LT-5 Industrial 21310

LT-6a Public Water Supply 10010

LT-6b Public Lighting 13196

LT-7 Temporary Supply 8964

LT TOTAL 1835683

HT-1 Water Supply 57

HT-2a Industrial 554

HT-2b Commercial 541

HT-3 Lift Irrigation 11

HT-4 Residential Apartments 62

HT TOTAL 1225

LT + HT TOTAL 1836908

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5. Review of Balance Sheet and Statement of profit and loss for the year ending March 31st 2012 with the previous year ended 31.03.2011 is as follows:

Analysis of Balance Sheet (Rs. in Crores)

Sl. No. Particulars 31.03.2012 31.03.2011

I Sources of funds

A Share Capital 172.07 157.34

B Reserves & Surplus 382.48 340.01

C Share holders’ fund 554.55 497.35

D Share Deposit (pending allotment) 0.00 0.00

II Non Current Liabilities

A Long Term borrowings 317.09 311.27

B Other long term liabilities 999.73 813.19

C Long term provisions 22.47 21.63

Sub-total 1339.29 1146.09

III Current liabilities

A Short term borrowings 90.63 41.00

B Trade Payables 360.69 289.96

C Other Current liabilities 333.65 297.67

D Short-term provisions 6.98 3.75

Sub-Total 791.95 632.38

TOTAL EQUITY & LIABILITIES 2685.79 2275.82

II Assets

1 Non-Current assets

A Fixed Assets

(i) Trangible Assets 926.99 843.35

(ii) Intangible assets 0 0

(iii) Capital work in progress 72.24 93.21

(iv) Intangible assets under development 0 0

B Non-Current investments 2.51 2.51

C Deferred tax assets (net) 0 0

D Long term loans and advances 2.57 2.43

E Other non-current assets 870.24 715.03

F Deferred Costs 0 0

Sub Total 1874.55 1656.53

2. Current assets

A Current Investments 0 0

B Inventories 32.50 18.26

C Trade receivables 351.21 288.85

D Cash and cash equivalents 37.39 28.00

E Short-term loans and advances 21.83 29.66

F Other current assets 368.31 254.52

Sub-Total 811.24 619.29

TOTAL ASSETS 2685.79 2275.82

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Share holders’ Funds has increased by Rs. 57.20Crs. (Net). Amounts added are:

1. Reserve for Material Cost Variance : - 4.31 Crs

2. Consumers contribution towards cost of Capital Assets : 40.37 Crs

3. Equity released by State Govt. : 14.73 Crs

4. Net Profit for the year : 6.41 Crs

Total additions to Share Holders’ fund : 57.20 Crs

Long term borrowings: During the Year MESCOM has borrowed Rs. 86.23

Crs and installments repayable during FY 12-13 amounting to Rs. 77.67 Crs

has been transferred to current liabilities. Further, Loan sanctioned by the

GOK during FY 2010-11 for SCP & TSP Projects to an extent of Rs.2.73 Crs is

converted into equity during the Year 2011-12.

Other Long Term Liabilities: It is increased by Rs. 186.53 Crs (Net). During

the Year the long term trade payables have increased by Rs. 158.68 Crs,

Initial/ Additional Security deposits have been collected to the extent of Rs.

31.71 Crs and MSD to the extent of Rs.2.99 Crs. The payable to other

ESCOMs has been increased to the extent of Rs. 2.62 Crs, whereas security

deposit and retention money from the Contractors to an extent of Rs. 9.67 Crs

has been refunded. And there is an increase of Rs. 0.20 Crs in miscellaneous

deposits.

Long Term Provisions: It is increased by Rs. 0.83 Crs due to additional

liability created in accordance with actuarial valuation report towards Earned

leave encashment and FBF.

Short Term Borrowings: There is an increase of Rs. 49.62 Crs. This is due to

net drawl of short term borrowings for working capital needs.

Trade Payables: The trade payables have been increased by Rs. 70.73 Crs

(net) mainly due to non-payment of power purchase dues.

Other Current Liabilities: It is increased by Rs. 35.97 Crs mainly due to the

following:

1. Additional loan repayment liability 7.93 Crs.

2. Liability for the supply / Works 7.20 Crs.

3. Employees liabilities 7.33 Crs.

4. Payables to GOK 2.45 Crs.

5. Interest payable on Consumers‟ Deposit 1.36 Crs.

6. Others 9.70 Crs.

Total 35.97 Crs.

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Tangible Assets: It has been increased by Rs. 83.64 Crs (Net) due to

categorization of Capital Works during the Year.

Capital Work in progress: It is decreased by Rs. 20.97 Crs due to

categorization of completed works.

Long Term Loans and Advances: It is increased by Rs. 0.13 Crs due to

additional deposits made with other departments.

Other Non- Current Assets: It is increased by Rs. 155.21 Crs. Out of this an

amount of Rs. 144.36 Crs is due from other ESCOMs towards Energy

Balancing.

Inventories: It is increased by Rs. 14.24 Crs.

Trade receivables: It is increased by Rs. 62.35 Crs mainly by non-payment of

monthly dues by VPs/TPs, TMCs /CMCs and Corporations.

Short term Loans and Advances: it is decreased by Rs. 7.83 Crs. due to

adjustment of advance to the contractors towards the Capital works.

Other Current Assets: It is increased by Rs. 113.79 Crs (Net). Out of which

Rs. 126.71Crs is receivable from GOK towards free supply of power to IP sets

upto 10 HP. Further there is a reduction to the extent of Rs. 42.27 Crs in

Regulatory Assets in accordance with KERC Tariff Order 2010.

Ratios

Sl.No. Particulars 31.03.2012 31.03.2011

1 Debt: Equity Ratio

a) Long Term Borrowings : Equity

b) Including short term borrowings

1.84 : 1

2.82 : 1

1.98 : 1

2.68 : 1

2 Current Ratio 1.02 : 1 0.98 : 1

3 Liquid Ratio 0.98 : 1 0.95 : 1

Analysis of Statement of Profit and Loss (Rs. in Crs.)

Sl.

No. Particulars 31.03.12 31.03.11

Increase/

decrease

Variance

in (%)

A Income

1 Revenue from operations

(Distribution of Power) 1545.31 1400.48 144.83 10.34

2 Other Income 163.59 78.11 85.48 109.43

Total Revenue 1708.90 1478.59 230.31 15.58

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Sl.

No. Particulars 31.03.12 31.03.11

Increase/

decrease

Variance

in (%)

B Expenses

1 Purchase of power 1276.26 1103.60 172.66 15.65

2 Employee Benefits Expense 187.79 173.05 14.74 8.52

3 Finance Costs 119.18 93.79 25.39 27.07

4 Depreciations and amortization

expenses 61.31 50.94 10.37 20.36

5 Other Expenses 55.80 54.89 0.91 1.66

Total Expenses 1700.34 1476.27 224.07 15.18

C Profit before exceptional and

extraordinary items & tax 8.56 2.32 6.24 268.97

D Exceptional Items 0.00 0.00 0.00 0.00

E Profit before extraordinary items

and tax 8.56 2.32 6.24 268.97

F Extraordinary Items 0.00 0.00 0.00 0.00

G Profit before tax 8.56 2.32 6.24 268.97

H Tax Expense 2.15 0.62 1.53 246.77

I Profit after Tax 6.41 1.70 4.71 277.06

Total Revenue has increased by 10.34% (Rs. 144.83 Crs.) over the previous year.

Other Income has increased by 109.43% (Rs. 85.48 Crs) over the previous year mainly due to accountal of subsidy receivable from the GOK in accordance with truing up Orders of KERC for the Years 2007-08, 2008-09 and 2009-10 to the extent of Rs. 123.26 Crs.

Since the arrears in respect of IP set Consumers having connected load upto 10 HP is freezed with effect from 01.08.2008, the Company has not charged interest on said arrears during the year 2011-12.

Power purchase cost has been increased by 15.65% (Rs. 172.66 Crs) over the previous year. The energy balancing result is awaited from LDC as on the date of preparation of the accounts. However the Energy Balancing Result arrived at joint reconciliation meeting held among the ESCOMs has been incorporated in the accounts to the extent of Rs. 144.36 Crs. Otherwise the power purchase cost would have been shoot up to that extent.

Employee cost has increased by 8.52% (Rs. 14.74 Crs) over the previous year on account of increase in salaries, wages and increase in the rate of pension contribution payable to the Trust.

Finance Charges has increased by 27.07 % (Rs. 25.39 Crs) over the previous year on account of increase in interest paid on loans drawn from Commercial Banks and interest payable for belated payments of power purchase dues.

Depreciation and amortization expenses have increased by 20.36% (Rs. 10.37 Crs) over the previous year, due to charging of depreciation on increased fixed assets.

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Other expenses has increased marginally by 1.66% (Rs. 0.91 Crs) over the previous year.

Profit before Tax has increased by 268.97% (Rs. 6.24 Crs) over the previous year.

The Current tax works out at Rs. 2.15 Crs, against the profit of Rs. 8.56 Crs on MAT basis.

Profit after Tax has increased by 277.06 % (Rs. 4.71 Crs) over the previous year. Company has accounted the energy balancing results for FY 2012 due to which Rs. 144.36 Crs is receivable from other ESCOMs. Due to this the Company has adverse effect on Cash Management, eventhough there is book profit.

6. An overview of the performance of MESCOM with regard to Distribution Transformers, HT/LT lines, Electrification, and Revenue Collection Efficiency is as under:

Sl. No. Particulars Unit 2011-12 2010-11 2009-10

1 Total Lines & TCs added: a. DTCs erected Nos. 2917 3382 2589 b. 11 KV HT lines RKms 1057.17 1264.24 953.91 c. LT lines RKms 1915.53 2673.06 1430.63 d. Reconductoring of HT Lines RKms 281.36 346.53 559.33 e. Reconductoring of LT Lines RKms 654.98 719.39 810.94 2 DTC Failure % 9.48 9.16 9.49 3 RE Works: a. Electrification of Hamlets Nos. 293 206 183 b. Electrification of Harijan Basthies/

JCs/ Tandas Nos. 67 50 79

c. Electrification of Tribal Colonies Nos. 40 19 75 4 Servicing of: a. Drinking Water Supply Schemes Nos. 342 284 574 b. Ganga Kalyana Schemes Nos. 1173 1162 1053 5 Total Energy Handled Mus 4072.42 3600.09 3273.83 6 Distribution loss % 12.09* 11.92 12.64 7 IP set serviced a. New IP sets Nos. 7459 6499 8857 b. Regularisation of Unauthorised IP

sets Nos. 13556 - -

8 BJ/KJ installations serviced Nos. 9390 33393 4713 9 Collection Efficiency: a. Overall % 95.34 99.56 96.88 b. Without IP, GP, BJ/KJ, Municipality % 98.59 99.69 99.98 c. Without IP % 95.15 97.27 98.04 10 HT Consumption: a. Total Mus 895.52 858.04 752.88 b. Without EHT Mus 610.21 541.21 472.38 11 Growth in Demand

(a) Total % 16.95 33.04 14.89 (b) Excluding IP Sets % 13.54 20.13 8.24

12 Growth in Collection (a) Total % 14.64 36.71 14.85

(b) Excluding IP Sets % 11.09 19.19 12.47

* Methodology is being reviewed

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7. Dividend :

The Board has not proposed any dividend for the financial year ended

31st March, 2012.

8. Power purchase:

During the year 2011-12, the power purchase is 4217.91 MU. at a total cost of

Rs. 1276.26 Crs. Total energy available for sale is 4072.42 Mus. Total sales during the year

were 3570.21 MU including unbilled energy of 47.63 MU. Remaining 502.21 MU was

attributable to system loss.

9. Source of funds & Borrowings:

a) The source of funds of the Company stands at Rs. 554.55 Crs. at the end of

the Financial Year comprising of Equity Share Capital A/c of Rs.172.07 Crs.,

and Reserves & Surplus of Rs. 382.48 Crs.

b) The total long term borrowing of the Company amounts to Rs. 317.09 Crs. and

the security deposits amounts to Rs. 313.63 Crs.

10. Milestones achieved during 2011-12:

Several initiatives have been taken up to strengthen and stabilise the distribution

system as well as the fiscal status of the Company. A bird‟s eye view of some of the major

achievements and the innovative initiatives are as follows:

(A) Addition of new Distribution Transformers to the System: In order to

improve the quality and reliability of power supply, 2917 numbers of

distribution transformers are added to the system in the identified low voltage

pockets.

(B) Metering Programme:

(i) The Company is marching towards 100% metering of the installations.

With a perennial and dedicated commitment, through universal metering

programme, the Company has achieved 98.13% metering as at the end of

FY 12.

(ii) During FY 2011-12, 40581 Nos., of DC/MNR Meters, 17370 Nos., of IP

Sets, 7597 Nos., of BJ/KJ installations and 810 Nos., of Street light

installations have been metered.

(C) Metering of Distribution Transformer Centers:

For more effective energy audit, it is contemplated to meter all Distribution

Transformer Centers with Automatic Meter Reading facility. 15,906 Nos. of

DTCs have been metered as on 31.3.2012.

(D) RGGVY:

(a) For implementation of RGGVY scheme in Shimoga & Chikmagalur

Districts, works amounting to Rs.78.14 crores have been awarded on Total

Turnkey basis to M/s L&T Ltd., Bangalore and is in the verge of

completion.

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The progress as on 31.3.2012 is as follows:

Sl. No.

District No of villages in which Work

completed

No. of Rural Habitations

in which Work

completed

No. of BPL house holds

electrified

Total No. of households electrified

(including BPL)

Total Outlay

(Rs.In Cr.)

1 Shimoga 1289 119 23784 46088 35.76

2 Chikmagalur 939 124 22933 67709 31.22

Total 2228 243 46717 113797 66.98

(b) For implementation of RGGVY in Dakshina Kannada and Udupi Districts M/s REC has communicated the approval for the project amounting Rs. 59.47 crores and Rs. 21.57 crores respectively. The tendering is under process.

The scheme details are as follows:

Description Un

Electrified Habitation

RHH (Including

BPL) BPL

Length of HT line (RKm.)

No.of DTs

(25 KVA)

Length of LT line (RKm.)

Sph 2W

2ph

3W

3 Ph 4W

Dakshina Kannada

98 31445 22121 620.80 570 1949.67 47.25 161.95

Udupi 50 10288 5661 187.43 138 725.45 67.45 122.79

Total 148 41733 27782 808.23 708 2675.12 114.70 284.74

(E) R-APDRP:

1. R-APDRP works approved by MoP, GoI have been taken up in respect of 11

nos., of towns of Dakshina Kannada, Udupi, Shimoga & Chikmagalur Districts.

2. MOP, GoI has approved a total loan amount of Rs. 12.07 crores. M/s. RIL,

Mumbai has been appointed as the common IT consultant at an award cost of

Rs. 0.36 crores. M/s. Infosys has been appointed as the IT implementation

Agency at an award cost of Rs. 24.89 crores.

3. The progress of works/ implementation of different modules are as follows,

i. Metering, billing & collection (MBC) – Module has gone live in Shikaripura

pilot town. In Kadur & Tarikere towns the process is in progress.

ii. Covering of entire sub-division installations in MBC module is under

consideration.

iii. GIS survey is completed in Shikaripura & Kadur towns. In Tarikere, Puttur

& Bantwal towns it is in progress.

iv. Customer care Centre is located at Kadri (SCADA building), final

installation works are in progress.

v. Installation of GPRS Modems to transformer Centres, feeders & HT

installations, for remote communication & Energy Audit is also taken up in

R-APDRP towns.

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(F) New 33/11 KV Sub-stations:

33/11KV Sub-station at Malpe in Udupi district with connected lines at a cost of

Rs. 5.06 Crores is in progress.

33/11KV Sub-station at Gangolli in Udupi district with connected lines at a cost

of Rs. 2.74 Crores is in progress.

Augmentation of existing 33/11KV sub-station at Nandigudda in Mangalore at

a cost of Rs. 86.30 Lakhs is in progress.

For better power supply to Byakodu village and surrounding areas located at a

distance of 71.32 Kms from Hosanagar, it is proposed to establish a 33/11KV,

1X5MVA sub station at Byakodu with LT line to an extent of 60 Kms at a total

estimated project cost of Rs.784.31 lakhs.

33KV Sub-station at NR Pura with terminal bays and lines at a cost of

Rs.11.50 Crores is in progress.

Further, new 33/11KV Sub-stations at Kakkinje, Campco-Puttur, Subramanya,

and Augmentation of existing 33/11KV sub-stations at Vogga, Kukkipady and

Nelyadi are on cards.

11. New Initiatives :

Implementation of Energy Efficient Irrigation Pump sets

In MESCOM 2 Nos. of 11KV feeders viz., Kabaka in D.K.District and Manai in

Udupi District have been identified for replacement of existing Irrigation Pump

sets by Energy Efficient Pump sets. The GIS mapping including consumer

indexing has been completed and the data validation is under progress.

Compact Sub-Station

MESCOM intends to introduce Compact Substations with remote operation

and communication facility for the first time in MESCOM jurisdiction. The

primary advantage of having a Compact Substation is lesser space

requirement as the space is the main constraint in urban areas.

It is proposed to make it unmanned sub-station by using Auto-reclosures for

33KV & 11KV breakers. Further we intend to integrate with the ALDC

(SCADA) at Kadri in Mangalore. The time and capital required for the

construction of compact substations is also very less in comparison to a

conventional 33/11KV Sub-Station.

SCADA:

MESCOM in association with KPTCL has implemented Integrated Extended

SCADA (IES) in 27 Nos of 33KV sub stations coming under its jurisdiction.

MESCOM has taken initiative for implementation of Integrated Extended

SCADA, phase -II for the newly commissioned 6 Nos. of sub-stations and

4 Nos. of upcoming sub-stations at a total cost of Rs. 1.35 Crores. With this,

MESCOM will have its all 33/11KV Sub-stations provided with SCADA facility.

13


12. Proposed Target for Capital Investment Plan 2012-13:

Sl. No. Schemes Target

1. Electrification of Hamlets 100 Nos.

2. Electrification of HB/ JC/ Tandas 36 Nos.

3. Electrification of Tribal Colonies 12 Nos.

4. Energization of IP sets 3500 Nos.

5. Kutir Jyothi 2800 Nos.

6. Service Connection 50, 000Nos.

7. Addition of new 33 KV sub-stations and allied lines 3 Nos.

8. Augmentation of 33 KV Stations. 1 Nos.

9. New HT Line 1200 Kms.

10. New LT line 1200 Kms.

11. Distribution Transformers 3000 Nos.

13. Civil Engineering Works: During 2011-12 Civil Engineering Wing has carried out the construction of office buildings and other infrastructure works as noted below:

[Rs. in lakhs]

Sl. No.

Particulars

Completed Works Expenditure during

11-12 of Spill over

Works

Expenditure during 11-12

No. of works completed

1. Construction of office building / stores/ guest houses and other building and extension works

105.6 15 85.17

2. Other infrastructure works such as compound, road, water supply, fencing & drainage etc.,

153.59 40 4.39

Total 259.19 55 89.56

For Financial year 2012-13, a budget of Rs. 800 lakhs is allocated towards spill-over

and fresh Civil Engineering works in MESCOM.

14. New initiatives in procurement of Materials:

(i) Energy Efficient 3 Star labeled Distribution Transformers :

In order to comply with the Energy Conservation Act 2001, procurement of energy

efficient, minimum 3 star labeled distribution transformers has been implemented. Number

of such distribution transformers procured during FY-2011-12 is as below:

Capacity Numbers

63 KVA 1461

25 KVA 968

(ii) The following polymeric type materials are being procured in order to minimize the failure rates in case of Porcelain type Materials.

Only Polymeric type Lighting Arrestors are being procured in order to minimize the distribution transformer failure rate especially in the heavy lightning prone areas.

14


45KN Polymeric type Insulator for 11 KV distribution system are procured for

usage in the coastal and heavy lightning prone areas.

5 KN Polymeric type Pin Insulator for 11 KV distribution system are being

procured for usage in the coastal and heavy lightning prone areas.

(iii) All the tender process are carried out at e-procurement portal only. On this

training and practical guidance has been given to the concerned staff and officers.

15. New O&M Circle Offices and New Divisions:

For better administrative control and effective services to the consumers, new O&M

Circle Offices have been formed with the headquarters at Udupi and Chickmagalore duly

bifurcating Mangalore and Shimoga Circles respectively. Further, a New works division has

been formed at Mangalore duly bifurcating the existing O&M Division Mangalore. Further

new O&M Sections have been formed for the better O&M activities and customer services.

16. Public Grievances Cell:

a. During the year 2011-12, the Public Grievances Cell received 677 Nos., of

written complaints out of which 92.46% ie., 626 Nos., of complaints were

resolved satisfactorily. The remaining 51 complaints were redressed in the

current financial year. Further 523 Nos., of minor complaints relating to

fuse-off call, low voltage etc were received through Telephonic Calls.

b. The category-wise complaints:

Sl. No.

Category of Complaints Nos. of

Complaints

1 Electricity Supply & Distribution code-violation 106

2 Voltage/interruptions 55

3 Bills related 21

4 Delay in Sanction & work 0

5 Accident & Compensation 39

6 Theft & unauthorized use of Electricity 14

7 Transformers Shifting etc. 73

8 Bribe/corruption/dishonest 84

9 Reduction in deposits /load reduction/repayment of deposits 03

10 New connection 115

11 Disconnections 09

12 Other Miscellaneous complaints. 158

Total 677

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c. A comparative data as to complaints are as follows;

No. of Complaints 2009-10 2010-11 2011-12 Remarks

No. of Written Complaints 513 510 677 Increase in No. of

complaints by 167 Nos.

No. of minor Telephonic

Complaints 1051 510 523

Increase in No. of

complaints by 13 Nos.

d. MESCOM Consumer Grievance Redressal Forum consisting of the Chief

Engineer (Elecy), MESCOM, as the Chairman, the Superintending Engineer

(C&RP), and a representative of Consumers‟ Forum as the Members and the

Manager (Public Grievance) as the Co-ordinator is functioning in the

Corporate Office. During the year forum has received 6 complaints and all

complaints are heard and disposed off.

17. Personnel, Industrial relations and Human Resource Development:

A) Personnel Details:

The working strength of employees as on 31.03.2012 is placed category-wise as

under:

Cadres Mangalore Shimoga Total

S W V S W V S W V

A - Grade (Regular Employees)

145 95 50 73 60 13 218 155 63

A - Grade (Deputation Employees)

4 3 1 2 2 0 6 5 1

Total 149 98 51 75 62 13 224 160 64

B - Grade (Regular Employees)

147 78 69 136 78 58 283 156 127

B - Grade (Deputation Employees)

2 2 0 2 2 0 4 4 0

Total 149 80 69 138 80 58 287 160 127

C - Grade (Regular Employees)

1291 900 391 1106 824 282 2397 1724 673

C – Grade (Deputation Employees)

16 16 0 16 13 3 32 29 3

Total 1307 916 391 1122 837 285 2429 1753 676

D - Grade (Regular Employees)

1808 888 920 1769 992 777 3577 1880 1697

Company Grand Total 3413 1982 1431 3104 1971 1133 6517 3953 2564

S-Sanctioned, W-Working, V-Vacant

16


B) Industrial Relations:

The Company has maintained cordial relations with the employees and their Union. Employees‟ grievances if any are redressed at respective offices by conducting periodical meeting with the local office bearers of the union.

C) Training and Development Programmes during the year 2011-12:

a) To inculcate the requisite work-culture and to develop the orientation and skill essential for today‟s advancing technology and operating environment, sufficient and constant both external and internal training programmes are being imparted to the rank and file employees of the Company.

b) Also, training on basic Tax laws, Labour laws, information Technology, safety, energy savings, Financial Management, Managerial effectiveness and Customer relationship etc., have been given to the employees for the enrichment of their knowledge and betterment of their attitudes and behaviour.

c) During the year 2011-12, Company has organized several Internal Training Programmes and deputed the regular working staff of the Company to various external training programmes.

The details of training programme are as follows;

External Training Programmes:

During the year 2011-12 company has deputed various officers and staff to the different training programmes organized by different external agencies. The details of such external training programmes are as follows:

Total No. of External training Programmes : 32

Total Cost including programme fees : Rs. 702268

No. of persons participated : 95

Cost per Head (Average) : Rs. 7392

Internal Training Programme

Sl. No

Subject Participants No. of

Programmes Total Cost

(In Rs.)

1 Right to Imformation Act 30 1 3100

2 Best Practices in Commercial Loss Reduction 36 1 8342

3 Catalogue Management & Contract Management through e-Procurement

19 1 5489

4 M/S REC Sponsored national training programs 924 36 912000

5 MESCOM - Mandatory Training Programmes 112 3 622000

6 Refresher programme 159 6 100000

7 Safety 51 1 9000

TOTAL 1331 49 1659931

ABSTRACT

Total No.of Internal training Programmes 49

Total Cost including programme fees (Rs.) 1659931

No. of persons participated 1331

Cost per Head (Average) (Rs.) 1247

17


D) Employees’ Welfare Schemes:

As a step towards strengthening the relationship between the employees and management, several welfare schemes have been initiated by the Company like :

(a) During the year 2011-12 the Company has contributed Rs. 5.00 lakhs to the KPTCL Sports Organisation, Bangalore and Rs. 3.00 lakhs to MESCOM Sports Committee for the Sports activities.

(b) To promote and encourage academic excellence, cash incentive of each Rs.2500/- (Rupees two thousand five hundred only) is being awarded to each of the meritorious children of the regular employees of the Company, who secure 90% and above marks in the SSLC/10th Standard and II PUC examination under the State/Central syllabus from the academic year 2007-08 and onwards. During the year 2011-12 this cash prize and appreciation letter has been awarded to 13 meritorious children.

(c) Birthday greetings cards are being issued to all regular employees on their respective birthday through heads of their respective office.

(d) A sum of Rs. 87,000/- was awarded to Mr. Roshan Ferrao, Junior Asst. and International Body Builder to participate in “ Mr. Universe International Body Building Championship-2011” held on 25.11.2011 to 27.11.2011 at Hamburg, Germany.

(e) Company Residential Quarters facilities wherever available are provided to the company employees.

18. Socio – Economic Projects

The Company has Contributed Rs. 5.00 lakhs as maintenance charges for 2 Lions in Pilikula Nisargadhama Zoo, the only geological park in the State, to meet social obligation.

19. Electrical Accidents during the Year 2011-12

The details of electrical accidents are presented as below:

Circles Name of the

Division Departmental Non-Departmental

Animal Grand Total Fatal Non-Fatal Fatal Non-Fatal

Mangalore

1. Mangalore-1 1 3 1 2 1 8

2. Mangalore-2 0 0 0 0 0 0

3. Bantwal 1 0 3 1 2 7

4. Puttur 0 0 1 2 2 5

Circle Total 2 3 5 5 5 20

Udupi

5. Udupi 0 3 10 2 6 21

6. Kundapura 0 2 3 0 0 5


Shimoga

7. Shimoga 0 15 4 2 23 44

8. Bhadravati 0 1 0 0 0 1

9. Sagar 0 7 0 1 19 27

10. Shikaripura 0 1 3 0 7 11


Chikmagalur

11. Chikmagalur 2 14 12 9 9 46

12. Kadur 1 3 2 1 8 15

Circle Total 3 17 14 10 17 61

GRAND TOTAL 5 49 39 20 77 190

18


20. Public relation and Communication Activities:

Highlights of Public Relations and Communication activities in MESCOM during

2011-12:

a) MESCOM has a separate wing for Public Relations and communication

headed by the Manager (Communications) reporting directly to the Managing

Director. The protocol management, guests and V.I.P visitors relationship

management and representing the Company in the society and public are the

main functions of this wing. In addition, the press and electronic media

relationships and public notifications etc., are the regular duties of this section.

b) During the year, 615 No. of Jana Samparka Sabhas, a programme of direct

interaction with the Public/consumers have been conducted at sub-division

and Section office levels. Under these Programmes the problems and

grievances of the consumers relating to electricity distribution have been dealt

with and solved and proper guidance and information are given to the general

public. In addition, the concerned Superintending Engineers (Ele) of O&M

Circles are conducting Consumer Meets at sub-divisional headquarters on

frequent intervals duly notifying the programme schedules in the leading news

papers. In these meetings also, the consumers complaints are addressed in

the presence of the local officers.

c) To educate the consumers regarding the usage of electricity devices and to

follow safety measures, wide publicity has been given through newspapers,

magazines, souvenirs and through T.V. channels. In addition, the pamphlets

highlighting the safety measures are also issued.

d) Participated in the direct interaction with public organized by local

T.V. channels in which, the issues and problems of the electricity consumers

have been attended to and measures were taken to handle and resolve the

consumers‟ queries and grievances.

e) The awareness of safety usage, electricity savings and other initiations of the

company are broadcasted through Radio FM channels, so as to communicate

and publicize among the general Public.

f) The contact Numbers of „24 Hours Service Stations‟, section officers,

sub-divisional officers and Divisional Engineers have been published in the

newspapers having wide circulation so that the consumers may contact for

their any problems in the electricity distribution systems and such other

problems including problems during monsoon season.

g) In order to have consumers‟ easy access to the company officials, and as a

“consumer friendly measure” the company has initiated printing and

distribution of cards consisting of telephone Nos. of Section, Sub-division,

Division offices and Vigilance to all LT-1, LT-2, LT-3 and LT-5 customers

across the company. These cards are distributed through Meter Readers of

the Sub-division level. Further, the Contact Nos. of sub-division and section

19


officers have been published in the leading news papers so as to contact the

Company‟s O&M officials on emergencies.

h) “MESCOM KIRANA” being the internal Magazine of the company is published

quarterly covering various reports on different programmes, sports activities,

training and HR activities. The magazine gives ample opportunities to disclose

the talents of employees in writing poems, articles and to share their

collections. The magazine is being published continuously and circulated

among Company‟s various offices so as to reach the readers. Copies of the

magazine are submitted to all Directors, KERC Authorities, Energy

Department, Finance Department, D.C. Office, Kannada Development

Authority, and such other offices.

i) During the occasion of National Consumers‟ Day, meetings have been

arranged duly inviting the consumers and representatives of consumers

various groups. In these meetings the grievances are heard and steps are

being taken to solve the issues/problems. Also consumers‟ suggestions to

improve the systems are very well taken into consideration.

j) During the occasion of Vigilance Awareness Week, an interaction with the

consumers and office bearers of consumer forums has been held and

awareness on electrical safety and energy savings has been highlighted. And

the SCADA system has been apprised to the participants so that the system of

energy drawal and utilization of power is shown to them.

21. Consumers Friendly Measures :

Strengthening of Central Public Grievance cell in addition to other consumer

complaint cells.

Soujanya counters are working at the Sub Divisional level to redress the public

grievances.

Implementation of Geographical Information System to improve quality of

power supply.

Computerization of all revenue section and implementation of information

technology in day to day activities.

Electronic Clearing System has been introduced for payment of electricity bills.

37 Nos. of ATP machine have been installed in sub-divisional and prime

locations, they are working satisfactorily.

24 Hours Consumer Service Centres have been opened in major city and town

places.

22. Internal Audit in MESCOM :

The internal Audit Wing of MESCOM is headed by Controller (Internal Audit). He is

functioning independently and reporting directly to the Managing Director of the Company.

The functions of Revenue Audit, Voucher Audit, Cash Audit and day to day pre and post

20


audit functions and also on need basis special inspections are independently carried out

regularly by the Internal Audit Officers and Staff of the Company.

The Revenue Ledgers maintained in the Sub-divisions and Accounting Sections are

audited as per Action Plan by concerned Divisional Assistant Accounts Officers (IA) and

Senior Assistants (IA). Depending upon the requirement and availability, the services of Rtd.

Senior Assistants are also utilized during the period to audit the Revenue Ledgers of LT-2 &

LT-3 Tariff Category. Further, due to paucity of staff, the qualified Chartered Accountants

have been entrusted the work of ledger audit of LT-2 & LT-3 tariff Category for the year 2010

in Mangalore, Puttur, Bantwal, Shimogga and Bhadravathi Divisions. The works have been

awarded to them on contract basis duly inviting tender and observing corporate formalities.

Audit functions are being continuously carried out as per approved Action Plan.

23. Vigilance Activities in MESCOM

As per Electricity Act 2003, Vigilance Police Stations are formed in MESCOM. The

Superintendent of Police is the head of the Vigilance wing, who is technically assisted by

Executive Engineer (Ele) in the headquarters.

Assistant Executive Engineers / Police Inspectors are working in districts, under them

Sub Inspectors/ Head Constables/ Police Constables are working.

Under Section 126 and 135 as per Electricity Act 2003 Non cognizable and

Cognizable cases are booked in MESCOM Vigilance Police Stations.

Cases booked under Section 135 are admitted only in special Courts.

Progress for the year 2011-12 is furnished below:

(Rs. in Lakhs)

Sl. N

o

Nam

e o

f th

e P

olic

e S

tatio

n

No.o

f In

sta

l. c

he

cked

No.of Cases

Booked

To

tal case

s

To

tal u

nits p

illfe

red

Demand

Co

mp

oun

d r

ais

ed

To

tal a

mo

un

t

Recovery

To

tal R

ecove

ry

Vio

latio

n C

ases

Cog

. C

ase

Vio

latio

n c

ases

Cog

niz

ab

le c

ases

Vio

latio

n c

ases

Cog

niz

ab

le c

ases

Com

po

un

din

g

1 Mangalore 971 138 41 179 837008 65.56 8.96 2.43 76.95 27.31 8.70 2.33 38.35

2 Shimoga 1458 118 78 196 50808 60.57 3.64 2.88 67.09 21.66 3.51 2.68 27.85

3 Chickmaglore 1168 113 64 177 1363512 50.97 2.09 2.97 56.04 9.35 1.88 3.01 14.24

4 Udupi 3581 196 11 207 31889 30.84 3.31 0.66 34.82 20.53 3.33 0.66 24.50

TOTAL 7178 565 194 759 2283217 207.94 18.00 8.96 234.90 78.85 17.42 8.68 104.94

21


24. Implementation of Right to Information Act 2005 in MESCOM :

1. The Details of PIOs, APIOs and respective Appellate Authorities have been

notified and updated in MESCOM website www.mesco.in under the caption

Right to Information Act in home page and the details are also made available

to the general Public in the respective offices.

2. 1200 Nos. of Applications including 3 Applications from BPL citizens have

been received seeking information under RTI Act 2005 across the company

during 2011-12, for which the fee of Rs. 11502/- has been collected towards

furnishing informations. During the year all the requests for information were

attended within the time limit. Further, 23 Nos. of Appeals have been received

and disposed off within time.

3. The training programme on the provisions and application of RTI Act 2005,

have been arranged for the benefit of PIOs and APIOs of the Company.

Further, in the regular training programmes, provisions of the Act have been

explained to the employees.

25. Particulars as per Companies (particulars of employees) Rules, 1975 and as

amended:

None of the employees of the Company was in receipt of remuneration amounting to

Rs. 24,00,000/- and above per annum or at the rate of Rs. 2,00,000/- and above per month

during the financial year under review.

26. Appointment of Cost Auditors:

The Ministry of Corporate Affairs, GoI vide No.52/62/CAB-2008 dated 4th Feb.2008

has directed the Cost Audit for the audit of cost accounts maintained by the Company in

respect of the financial year ending 31.03.2008 and for every financial year thereafter

continuously to be conducted by an Auditor with qualifications prescribed in section 233B (1)

of the Companies Act, 1956. Accordingly, M/s. Rao Murthy & Associates, Cost Accountants,

No.23/33, Serveyor‟s Street, Basavanagudi, Bangalore - 560004 have been appointed as the

Cost Auditors of the Company for the FY 2007-08 and onwards.

Further the details of Cost Audit Reports filed with GoI are as under:

Financial Year Due date to Submit

Report Date of Submission

of Report

2007-08 30.09.2008 30.09.2008

2008-09 30.09.2009 08.12.2009

2009-10 30.09.2010 29.09.2010

2010-11 30.09.2011 04.11.2011

2011-12 30.09.2012 Yet to be submitted.

http://www.mesco.in/

22


27. Board of Directors

(A)

Sl. No. Shriyuths/Smt. Particulars

1. P. Ravikumar, IAS Chairman from 25.5.2011 to 04.09.2012

2. S. Selvakumar, IAS Chairman from 05.09.2012

3. Vijayanarasimha Managing Director from 23.05.2011to 04.10.2012

4. S. Sumanth Managing Director from 05.10.2012

5. H. Nagesh Director (Tech) from 06.06.2011

6. Dr. Aditi Raja Director from 24.9.08

7. T.Sham Bhatt, IAS Director from 2.8.2010 to 21.10.2011

8. N.S. Channappa Gowda IAS Director from 21.10.2011

9. P.K. Garg Director from 23.10.2010 to 29.12.2011

10. A.N.Sridhara Director from 7.3.2009 to 31.08.2012

11. H.R. Nagendra Director from 02.05.2011

12. D. Basavaraju Director from 29.12.2011

13. L.Ravi Director from 24.9.2008 to 21.10.2011

14. V. Venkatashiva Reddy Director from 21.10.2011

15. M.Nagaraj Director from 17.12.2008

16. P. Rama Amin Director from 15.12.2009

17. G.K. Shadaksharappa Director from 15.12.2009

The Board places on record its sincere appreciation and gratitude of the services

rendered by the outgoing Directors.

(B) Meetings of the Board and Board Sub-Committees

i) Board meetings 4

ii) Purchase Committee 5

iii) Audit Committee 2

(C) General Meetings:

The ninth Annual General Meeting of the Company was held at the Registered Office

of the Company on 22nd Oct 2011 for consideration and adoption of accounts.

28. Directors’ Responsibility Statement:

Pursuant to Section 217(2) (AA) of the Companies Act, 1956, the Directors wish to

state that to the best of their knowledge:

i. in the preparation of the annual accounts, the applicable accounting standards

have been followed along with proper explanation relating to material

departures;

23


ii. accounting policies have been selected and applied consistently and made

judgments and estimates that are reasonable and prudent so as to give a true

and fair view of the state of affairs of the company at the end of the financial

year and of the profit or loss of the company for that period;

iii. proper and sufficient care has been taken for the maintenance of adequate

accounting records in accordance with the provisions of the Companies

Act, 1956 for safeguarding the assets of the company and for preventing and

detecting fraud and other irregularities;

iv. Annual Accounts have been prepared for the Financial Year ended

March 31, 2012 on a going concern basis.

29. General:

The Board would like to place on record its appreciation of :

The Government of Karnataka, the Government of India, Central Electricity

Authority, Comptroller & Auditor General of India, Central Electricity Regulatory

Commission, Karnataka Electricity Regulatory Commission, Karnataka Power

Transmission Corporation Ltd., Karnataka Power Corporation Ltd., & Power

Company of Karnataka Ltd., for their assistance, guidance and Co-operation.

Financing agencies such as Rural Electrification Corporation, Power Finance

Corporation, Syndicate Bank, State Bank of Mysore, Canara Bank, Corporation

Bank, Vijaya Bank, State Bank of India, Punjab & Sindh Bank, UCO Bank,

Indian Bank, Axis Bank and Karnataka Bank for their financial support.

The media for publicity and creating awareness among the public.

The Statutory Auditors and Cost Auditors for their guidance and support.

All the agencies associated with the computerisation of billing.

The Employees, Employees‟ Union and other Associations of employees for

their co-operation and collective participation.

The suppliers, contractors and consultants for their Co-operation.

Sd/- Place : Mangalore (S. SELVAKUMAR) Date : 26.11.2012 CHAIRMAN

24


Addendum to Directors’ Report

Replies offered on the observations / comments of the Statutory Auditors on the accounts of the Company for the year 2011-12 are as follows:

Observations by Statutory Auditors Replies offered

I) The Company follows accounting policies

and procedures as laid down in Electricity

(Supply) Annual Accounts Rules, 1985

(hereinafter referred to as ESAAR), which

is in variance with the requirements of the

Accounting Standards referred to in sub-

section (3C) of section 211 of the

Companies Act, 1956. The Company has

informed us that ESAAR, 1985 is a

Statutory Regulation and in the event of a

variance in accounting treatment as

specified under ESAAR, 1985 and the

Accounting Standards, the Company has

accounted for the same as per ESAAR,

1985. Therefore, the Company has not

complied with the following Accounting

Standards:

1. Accounting Standard-2: The Company

has valued its inventories at Standard

Rate and not at cost or net realizable

value whichever is lower.

2. Accounting Standard-10: Items of fixed

assets retired from active use are stated

at their book value or standard rate

In accordance with the section 616(c) of

the Companies Act 1956, read with section

185 2(d) of the Electricity Act 2003,

MESCOM is following the Annual Accounts

Rules framed under section 69 of Electricity

Supply Act 1948, wherever there is

inconsistency between Companies Act

1956 & ESAAR 1985. Further, the

provisions of Electricity Act 2003 read with

rules made there under prevail wherever

the same are inconsistent with the

provisions of the Companies Act 1956 in

terms of section 174 of the Electricity Act

2003. As the Accounting Standards are

not sector specific and relying upon scope

of the Accounting Standards 4.2 which

reads “The Accounting Standards by their

very nature cannot and do not override the

local regulations which govern the

preparation and presentation of Financial

statements in the country”.

Further, AS-2 states that standard cost

may be used for convenience if the result

approximates the actual cost. Also

standard rates are regularly revised in the

light of changing conditions, which are

approximate to the actual cost. Hence the

Company is following standard cost where

the difference is negligible consistently.

Treatment of material cost variance has

been stated under para No. 1(g) to

significant accounting policies for the

period ended 31.03.2012.

There is no violation of AS-10 in view of the

provisions of section 616(c) of the

Company‟s Act 1956.

25



depending on their re-usability. The

value is not tested in comparison to net

realizable value. Such assets are

disclosed as a part of current assets.

Also, value of capital works representing

consumers‟ contribution for assets

transferred to the Company is included

in the block of fixed assets under various

categories. These fixed assets are

recorded at standard costs for the assets

as on the date of transfer. This

accounting policy is not in consonance

with the Accounting Standard.

3. Accounting Standard-12: Government

grants relating to specific fixed assets

are not shown as a reduction from the

Gross value of the assets concerned

while arriving at their book value neither

is the grants treated as deferred income

and accounted in the Profit and Loss

Account on a systematic basis.

4. Accounting Standard-22: The company

has not accounted deferred tax assets /

liabilities as required by Accounting

Standard-22.

ESAAR reads as under-

2.35- Consumers‟ contributions, subsidies

and grants towards cost of capital assets

shall not be treated as reduction in the

“cost” but as a capital receipt to be credited

to Capital Reserve Account.

AS-22: The Company has not recognized

Deferred Tax Asset / Deferred Tax

Liabilities so far since there is no such

requirement under ESAAR, 1985.

II) The Title deeds of immovable properties

in the erstwhile name of the establishment,

which MESCOM has succeeded, are yet to

be transferred in the name of the

Company. The charge created on assets

of the Company will not be complete to the

extent to which documentation in respect of

properties for which charge has been

created continues to be held in the name of

erstwhile establishment.

Out of a total of 139 landed assets

(excluding leased assets), MESCOM has

obtained documents for 133 of them. The

process of transfer of documentations in

the name of MESCOM in respect of

balance 6 No. of landed assets is in

progress and will be completed in the

coming years.

26



III) The Company has an internal audit

system. However, considering the size of

the Company and volume of its business,

we are of the opinion that the present

system requires to be strengthened and

audit department needs to be adequately

staffed. The audit system needs to cover

technical audit, materials, inventory, stores

and compliance and adherence to various

provisions of Tax Laws and Labour Laws in

particular.

Company has an Internal Audit Wing

working in each accounting division to

verify and report any shortcoming

regarding cash, revenue, work accounts,

cost register, material audit, inventory and

stock records. Further at Company‟s

Corporate Office, Controller (Internal Audit)

is monitoring and supervising the work of

Internal Audit Wing of each Division and

rendering periodical reports to

management regarding any shortcomings

observed. Company has an „in-built‟

system of internal control for each activity.

IV) The Balances of Sundry Debtors,

Sundry Creditors, Loans and Advances,

Other Receivables and other debit / credit

balances including that of other ESCOM‟s

and KPTCL are subject to confirmations

and reconciliations. The effect of the

adjustment arising from reconciliation and

settlement of old dues and possible loss

which may arise on account of non

recovery or partial recovery of such dues is

not ascertained. Thus we are unable to

comment upon the impact thereof on the

accounts and profit for the period.

As disclosed under note 4.1.2.5, 38 & 39,

the balances in respect of Sundry Debtors,

Sundry Creditors, Loans and Advances to

Suppliers and other borrowings are subject

to confirmation. However action has been

taken to reconcile the balances of inter-

company transactions as well as power

purchase dues.

V) The Control account balances as

reflected by the General Ledger at

Divisions and Subsidiary Registers at Sub-

Divisions in the matter of Consumer

Security Deposits and Meter Security

Deposits are not fully reconciled.

During the balance sheet restructuring plan

III, a portion of meter security deposit was

capitalized as per the direction of the Govt.

Though the amount was capitalized, the

amount is still outstanding in the

consumers‟ ledger account. But the meter

security deposit as per accounts was

reduced to that extent in the accounts of

the Company, leading to difference

27



between the balance as per consumers‟

ledger account maintained at Divisions and

as per accounts of the Corporate Office.

Further, the deposit registers are being

maintained at Sub-divisional / Section

levels and the accounts are maintained at

divisional levels. The Company has made

efforts to reconcile the balances between

the deposit registers and accounts during

the financial year. Since the task is

voluminous efforts are being made to

complete the same.

VI) The Company has not furnished in the

notes to accounts, the details with regard to

Micro and Small Scale Business

Enterprises, to whom the Company owes

dues, which are outstanding for more than

45 days as at March 31st, 2012. This

information is required to be disclosed

under the Micro, Small and Medium

Enterprises Development Act, 2006.

The suppliers or service providers coming

under the MSMED Act, 2006 neither

claimed any interest nor disclosed the facts

in their invoices or bills. Further, the

Company has not received any

communication from those in respect of

whom disclosures are to be made under

the said Act.

VII) The Fixed Asset register maintained by

the company does not show full particulars

such as asset identification number and its

situation.

Owing to the peculiar nature of power

distribution business, it has not been

possible to allot asset identification

numbers to all assets of the Company.

However, Fixed Asset Registers

maintained at the Divisional Offices give

particulars about the nature of assets, year

of installation etc.

VIII) In the absence of adequate report on

physical verification of Fixed Assets, we

are unable to comment about the

reasonableness of intervals at which Fixed

Assets have been verified and accounting

of discrepancies noticed thereon if any.

The Company carries out physical

verification of assets situated at power

station level. Other assets like poles and

transmission lines could not be physically

verified since it is spread throughout

service area.

28



IX) The energy balancing results

incorporated in FY 2010-11 pertaining to

FY 2008-09, 09-10, 10-11 has been again

revised in the current year. The difference

is accounted along with provisional energy

balancing result for the year 2011-12 based

on joint reconciliation carried out by all the

ESCOMs at LDC and is subject to

confirmation by State Load Dispatch

Centre /KPTCL.

Factual.

X) In our opinion the company does not

have an Internal Audit system

commensurate with the size and nature of

its business. Internal Audit system needs

to be strengthened in terms of adequate

staffing and area of coverage as mentioned

in Para 4(ii) of our Audit Report.

The Company will enhance the scope of

activities covered by Internal Audit to

extend coverage for compliance and

adherence to tax issues as well. The

framework of the audit plan is under

preparation and is actively pursued upon.

Sd/- Date : 26.11.2012 (S. SELVA KUMAR) Place : Mangalore Chairman

29


AUDITORS’ REPORT

TO THE MEMBERS OF MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED, MANGALORE

1. We have audited the attached Balance Sheet of Mangalore Electricity Supply Company Limited (MESCOM), Mangalore, as at 31st March 2012 and the Profit and Loss Account and also the Cash Flow Statement for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company‟s Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes, examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of financial statements. We believe that our audit provides a reasonable basis for our opinion.

The Mangalore Electricity Supply Company Limited is a Government Company within the meaning of Section 617 of the Companies Act, 1956, formed to take over the Assets and Liabilities of certain divisions of Karnataka Power Transmission Corporation Limited (KPTCL) engaged in distribution of power. The Company has adopted the accounting policies and procedures followed by KPTCL and is consistently following the accounting system laid down in the Electricity (Supply) Annual Accounts Rules, 1985 framed under the Electricity (Supply) Act, 1948 (54 of 1948) (now repealed) by virtue of clause (d) of sub-section 2 of section 185 of the Electricity Act, 2003.

3. As required by the Companies (Auditor‟ Report) Order, 2003, as amended by the Companies (Auditors‟ Report) (Amendment) Order, 2004 (together the „Order‟) issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956, (“the Act”) and on the basis of such checks we considered appropriate, and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order to the extent applicable to the Company.

Accordingly, the Company had prepared its Balance Sheet as at 31-03-2012 and the Statement of Profit and Loss for the year ended on that date together with Cash Flow Statement which was approved by the Board of Directors of the Company on 24th of July, 2012 and was forwarded to us for our Report thereon and we had issued our Report thereon on the following day. Thereafter, the accounts of the Company has been reviewed by Comptroller and Auditor General of India as mentioned in Note No. 41 of Notes on Accounts. The Comptroller and Auditor General of India has raised certain issues as far as the accounts are concerned. The Board of Directors of the Company have taken note of the observations and opted to revise the accounts of the Company in the light of aforesaid observations. The said revision has resulted in decrease in share capital by Rs. 0.03 Lakhs, increase in share deposit by Rs.0.03 lakhs, increase in reserves & surplus by Rs. 100.54 lakhs, increase in long term liabilities by Rs. 4.18 lakhs, decrease in short term liabilities by Rs. 4.18 lakhs, decrease in trade payables by Rs. 36.17 lakhs, decrease in other current liabilities by Rs. 468.03 lakhs.

30


Further, tangible assets stands increased by Rs. 74.14 lakhs, other non-current assets decreased by Rs. 25.15 lakhs, trade receivables decreased by Rs. 23.05 lakhs, other current assets decreased by Rs. 429.60 lakhs and total assets and liabilities stand decreased by Rs 403.66 lakhs.

4. Further to our comments referred to in paragraph 3 above, we report that:

(a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

(c) The Balance Sheet and Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.

(d) The company follows accounting policies and procedures as laid down in Electricity (Supply) Annual Accounts Rules, 1985 (hereinafter referred to as ESAAR), which is in variance with the requirements of the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956. The Company has informed us that ESAAR, 1985 is a Statutory Regulation and in the event of a variance in accounting treatment as specified under ESAAR, 1985 and the Accounting Standards, the Company has accounted for the same as per ESAAR, 1985. Therefore, the Company has not complied with the following Accounting Standards:

1. Accounting Standard-2: The Company has valued its inventories at Standard Rate and not at cost or net realizable value whichever is lower.

2. Accounting Standard – 10: Items of fixed assets retired from active use are stated at their book value or standard rate depending on their re-usability. The value is not tested in comparison to net realizable value. Such assets are disclosed as a part of current assets. Also, value of capital works representing consumers contribution for assets transferred to the Company is included in the block of fixed assets under various categories. These fixed assets are recorded at standard costs for the assets as on the date of transfer. This accounting policy is not in consonance with the Accounting Standard.

3. Accounting Standard – 12: Government grants relating to specific fixed assets are not shown as a reduction from the Gross Value of the assets concerned while arriving at their book value neither is the grants treated as deferred income and accounted in the Profit and Loss Account on a systematic basis.

4. Accounting Standard – 22: The Company has not accounted deferred tax assets / liabilities as required by Accounting Standard – 22.

The effect of the above on the financial statements is not ascertainable.

Further,

i. The Title deeds of immovable properties in the erstwhile name of the establishment, which MESCOM has succeeded, are yet to be transferred in the name of the Company. The charge created on assets of the Company will not be complete to the extent to which documentation in respect of properties

31


for which charge has been created continues to be held in the name of erstwhile establishment.

ii. The Company has an internal audit system. However, considering the size of the Company and volume of its business, we are of the opinion that the present system requires to be strengthened and audit department needs to be adequately staffed. The audit system needs to cover technical audit, materials, inventory, stores and compliance and adherence to various provisions of Tax Laws and Labour Laws in particular.

iii. The Balance of Sundry Debtors, Sundry Creditors, Loans and Advances, Other Receivables and other debit / credit balances including that of other ESCOMs' and KPTCL are subject to confirmations and reconciliations. The effect of the adjustment arising from reconciliation and settlement of old dues and possible loss which may arise on account of non recovery or partial recovery of such dues is not ascertained. Thus we are unable to comment upon the impact thereof on the accounts and profit for the period.

iv. The Control account balances as reflected by the General Ledger at Divisions and Subsidiary Registers at sub-divisions in the matter of Consumer Security Deposits and Meter Security Deposits are not fully reconciled.

v. The company has not furnished in the notes to accounts, the details with regard to Micro and small scale Business Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2012. This information is required to be disclosed under the Micro, -Small and Medium Enterprises Development Act, 2006.

e) As per Notification No.: GSR 829(E) dated 21-10-2003, Government Companies are exempted from the provisions of clause 274(1)(g) of the Companies Act, 1956.

f) Subject to our comments in para 4(d) above, the aggregate effect of which on the Profit and on the Assets and Liabilities is not ascertained, and on the basis of the fact that the accounts are prepared as per ESAAR, in our opinion and to the best of our information and according to the explanations given to us, the said financial statements, read together with the notes thereon and attached thereto, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) In the case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2012:

ii) In the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and

iii) In the case of Cash Flow Statement, of the cash flows for the year ended on that date.

For GANESH & SUDHIR

Chartered Accountants,

(Firm Regn No. 000866S)

Sd/-

Place: Mangalore (GIRIDHAR KAMATH)

Date : 07-09-2012 Partner (M.M. 203199)

32


ANNEXURE TO THE AUDITORS’ REPORT

(Referred to in Paragraph 3 of our Report of even date)

(i) (a) The Fixed Asset Register maintained by the Company does not show full particulars such as asset identification number and its situation.

(b) In the absence of adequate report on physical verification of Fixed Assets, we are unable to comment about the reasonableness of intervals at which Fixed Assets have been verified and accounting of discrepancies noticed thereon if any.

(c) According to the information and explanations given to us, the Company has not disposed off a substantial part of its fixed assets during the year.

(ii) a) As informed and explained to us physical verification of inventory has been conducted at reasonable intervals by the management.

b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

c) In our opinion and as explained and informed to us, the Company is maintaining proper records of inventory. Material discrepancies noticed on physical verification have been properly dealt with in the books of account.

(iii) According to the information and explanation given to us, the company has neither granted nor taken any loan from Companies, firms or other parties covered in the register maintained U/s 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to the purchase of inventory and fixed assets and for the sale of electricity. According to the information and explanations given to us, the purchase price and sale of electricity is regulated by Karnataka Electricity Regulatory Commission. The Company arranges payment to the power suppliers based on the notional share basis fixed and notified by Govt. of Karnataka from time to time. Based on the energy balancing report furnished by Load Dispatch Centre (LDC) for the year 2008-09, 2009-10 and 2010-11, the results have been incorporated in the books of the Company during the year 2010-11. This has again been revised in the current year. The difference is accounted along with the provisional energy balancing result for the year 2011-12 based on joint reconciliation carried out by all the ESCOMs at LDC and is subject to confirmation by State Load Dispatch Centre/KPTCL.

(v) As informed and explained to us the Company has not entered into any transactions that needs to be entered into the register in pursuance of section 301 of the Act.

(vi) In our opinion and according to information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of section 58A of the Companies Act, 1956 and the rules framed thereunder. Therefore the provisions of clause (vi) of

33


paragraph 4 of the aforesaid order are not applicable to the Company for the financial year under report.

(vii) In our opinion, the company does not have an Internal Audit System commensurate with the size and nature of its business. Internal Audit system needs to be strengthened in terms of adequate staffing and area of coverage as mentioned in Para 4(ii) of our Audit Report.

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the central Government for maintenance of cost records u/s 209(1)(d) of the Companies Act, 1956 in respect of distribution of electricity and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have not, however, made a detailed examination of the said records.

(ix) a) According to the books and records as produced before us and examined by us, in accordance with generally accepted auditing practices in India and also based on Management representations, undisputed statutory dues have been regularly deposited by the Company during the year with appropriate authorities. According to the information and explanations given to us, there were no undisputed amounts payable in respect of provident fund, employee state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues outstanding as at March 31, 2012 for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us and the records examined by us, the particulars of EPF dues which has not been deposited on account of a dispute pending are as under:

Name of the

Statute

Nature of the disputed dues

Amount

(Rs.)

Payments made by the company /

adjustments made by the dept. (Rs.)

Period to which the amount relates

Forum where disputes are

pending

EPF Act

EPF of contract employees –

error in calculation of

demand

4,44,06,265 1,77,63,000 2006-07

Case remanded back to PF

Office,

Mangalore

(x) The company does not have accumulated losses at the end of the financial year. The company has not incurred cash losses during the financial year covered by the audit, nor in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given to us, there is no default in repayment of loan dues by the Company.

(xii) According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) The provisions of any special statute as referred under clause (xiii) of paragraph 4 of the Order are not applicable to the Company.

34


(xiv) In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in securities.

(xv) According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) In our opinion and according to the information and explanations given to us, the term loans outstanding at the beginning of the year and those raised during the year have been applied for the purposes for which they were raised.

(xvii) According to the information and explanations given to us, and on an overall examination of the Balance Sheet of the Company, funds raised on short term basis have, prima facie, not been used during the year for long term investment.

(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) The Company has not raised any debentures during the year.

(xx) The Company has not raised any monies by way of public issues during the year. However, a loan amount of Rs. 273.03 Lakhs raised from Govt. of Karnataka during the year 2010-11 (as detailed in Note 4.1.2.6) has been converted into Equity.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud on or by the Company was noticed or reported during the year, except in the case of theft of electricity reported by the vigilance department of the Company, the amount of which is not quantified.

For GANESH & SUDHIR

Chartered Accountants,

(Firm Regn No. 000866S)

Sd/-

Place: Mangalore GIRIDHAR KAMATH

Date : 07-09-2012 Partner (M.M. 203199)

35


COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER

SECTION 619(4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF

MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED, MANGALORE FOR THE

YEAR ENDED 31 MARCH 2012.

No. Pr. AG (ERSA)/PS/2012-13/K02-10/183, Dated: 20/21.9.2012

The preparation of financial statements of MANGALORE ELECTRICITY SUPPLY

COMPANY LIMITED, MANGALORE for the year ended 31st MARCH 2012 in

accordance with the financial reporting framework prescribed under Companies Act,

1956 is the responsibility of the management of the Company. The Statutory Auditors

appointed by the Comptroller and Auditor General of India under Section 619(2) of the

Companies Act, 1956 are responsible for expressing opinion on these financial

statements under section 227 of the Companies Act 1956 based on independent audit in

accordance with the auditing and assurance standards prescribed by their professional

body, the Institute of Chartered Accountants of India. This is stated to have been done

by them vide their Audit Report dated 07 SEPTEMBER 2012.

I, on behalf of the Comptroller and Auditor General of India, have conducted a

supplementary audit, under section 619(3)(b) of the Companies Act, 1956, of the

financial statements of “MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED,

MANGALORE” for the year ended 31st MARCH 2012. This supplementary audit has

been carried out independently without access to the working papers of the Statutory

Auditors and is limited primarily to inquiries of the Statutory Auditors and company

personnel and a selective examination of some of the accounting records. In view of the

revisions made in the financial statements by the management, as a result of my audit

observations highlighted during supplementary audit as indicated in the Note No.41

forming part of Accounts, I have no further comments to offer upon or supplement to the

Statutory Auditors‟ Report under section 619(4) of the Companies Act, 1956.

For and on behalf of the Comptroller & Auditor General of India Sd/- (ANITA PATTANAYAK) Bangalore Principal Accountant General Dated: 20 September 2012 (Economic & Revenue Sector Audit) Karnataka, Bangalore

36


BALANCE SHEET AS AT 31ST MARCH 2012

( Rs. in Lakhs)

Sl. No.

Particulars Note No

Account Code

As at 31-03-2012 As at 31-03-2011

I EQUITY AND LIABILITIES 1 Shareholders' Funds

a) Share Capital 1 52.301 52.302

17206.99 15733.99

b) Reserves and Surplus 2 55 to 58 38248.48 55455.47 34000.83 49734.82

2 Share Deposit (Shares pending Allotment)

3 52.303 0.03 -

Sub-Total 55455.50 49734.82 3 Non-Current Liabilities a) Long-term borrowings 4 53 to 54 31709.30 31126.58 b) Deferred Tax Liabilities (Net) 5 - - - c) Other long term liabilities 6 42 to 48 99973.14 81319.24 d) Long-term Provisions 7 44 2246.63 2163.39

Sub-Total 133929.07 114609.21 4 Current Liabilities a) Short-term borrowings 8 50 9062.61 4100.09 b) Trade payables 9 41 36068.83 28995.17

c) Other current liabilities 10 42 to 46

51, 53, 54 33364.72 29767.40

d) Short-term provisions 11 46 698.73 375.01 Sub-Total 79194.89 63237.67

TOTAL 268579.46 227581.70 II Assets 1 Non-Current assets a) Fixed assets

(i) Tangible Assets 12 10 & 12 92699.46 84335.22 (ii) Intangible assets 13 - - - (iii) Capital work-in-progress 14 14,15 &17 7223.73

9320.77

(iv) Intangible assets under development

15 - - -

b) Non-Current investments 16 20.291 251.00 251.00 c) Deferred Tax Assets(net) 17 - - -

d) Long term loans and advances

18 28.935 256.60 242.94

e) Other non-current assets 19 28 & 16.2 87024.06

71502.57 f) Deferred Costs 20 - - - Sub-Total 187454.85 165652.50

2 Current assets a) Current Investments 21 - - - b) Inventories 22 22 3250.29 1826.10

c) Trade receivables 23 23, 47.607 &

47.609 35120.89 28885.18

d) Cash and cash equivalents 24 20 & 24 3739.69 2799.58

e) Short-term loans and advances

25 25, 26, 27 &

28.913 2182.65 2966.38

f) Other current assets 26 23.4 & 28 36831.09 25451.96 Sub-Total 81124.61 61929.20 TOTAL 268579.46 227581.70 Significant Accounting Policies and Notes to Accounts form part of the Accounts.

Sd/- (K. JAYARAMA ALVA)

Financial Advisor

Sd/- (H. NAGESH)

Director (Tech) In terms of our Report of even date

for GANESH & SUDHIR

Sd/- (VIJAYANARASIMHA)

Managing Director

Place : Mangalore Date : 07.09.2012

Chartered Accountants Firm Reg. No: 000866 S

Sd/- GIRIDHAR KAMATH

Partner Membership No. 203199

37


STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31ST MARCH 2012

(Rs. in Lakhs)

Sl. No.

Particulars Note No.

Account Code

For the year 2011-12

For the year 2010-11

I Revenue from operations (Distribution of Power)

27 61, 62 & 83

154530.56 140047.62

II Other Income 28 61.905

62 & 65

16359.41 7811.32

III Total Revenue (I+II) 170889.97 147858.94

IV Expenses

Purchase of Power 29 70 127625.60 110359.70

Employee Benefits Expense 30 75 18779.44 17305.02

Finance Costs 31 78 & 80 11917.55 9379.18

Depreciation and amortization expenses 32 77 & 83.6 6130.97 5093.62

Other Expenses 33 74, 76, 79 & 83

5580.50 5489.40

Total Expenses 170034.06 147626.92

V PROFIT BEFORE EXCEPTIONAL AND EXTRAORDINARY ITEMS AND TAX (III-IV)

855.91 232.02

VI Exceptional Items - -

VII PROFIT BEFORE EXTRA ORDINARY ITEMS AND TAX (V-VI)

855.91 232.02

VIII Extraordinary items - -

IX PROFIT BEFORE TAX (VII-VIII) 855.91 232.02

X TAX EXPENSE

Current Tax 81.1 214.72 61.92

Deferred Tax - -

XI Profit (Loss) for the period from continuing operations (IX-X)

641.19 170.10

XII Profit (Loss) from discontinuing operations - -

XIII Tax expense of discontinuing operations - -

XIV Profit (Loss) from discontinuing operations (after Taxes) (XII-XIII)

- -

XV Profit (Loss) for the period (XI+/-XIV) 641.19 170.10

XVI Earnings per equity share (in Rs)

Basic and diluted 0.40 0.12

Significant Accounting Policies and Notes to Accounts form part of the Accounts.


Financial Advisor

Sd/- (H. NAGESH)

Director (Tech)

In terms of our Report of even date for GANESH & SUDHIR


Managing Director





38


CASH FLOW STATEMENT FOR THE YEAR ENDING 31.3.2012

Rs. in Lakhs

Sl. No.

Particulars 31.03.2012 31.03.2011

Cash flows from operating activities

Net profit before taxation and extraordinary items 855.91 232.03 Adjustment for: Depreciation 6130.97 5093.66 Foreign exchange loss - - Interest income 104.41 53.54 Dividend income - - Interest expense 11917.55 9379.18

Operating profit before working capital changes 18800.02 14651.33 (increase)/Decrease in trade receivables -6235.71 -999.89 (increase)/Decrease in loans and advances 783.72 296.42 (increase)/Decrease in other current assets -11379.12 -11540.39 (increase)/Decrease in inventories -1424.19 -67.43 (increase)/Decrease in short term borrowings 4962.52 442.12 (increase)/Decrease in trade payables 7073.66 -8142.68 (increase)/Decrease in provisions 323.72 -48.46 (increase)/Decrease in current liabilities 3597.32 -2298.08 -6385.80 -26446.11 Cash generated from operations 16501.94 -11794.78

Income taxes paid 1106.62 1106.54 Cash flow before extraordinary item 15395.32 -12901.32

Extraordinary items (specifying nature) - - Net cash from operating activities (A) 15395.32 -12901.32 Cash flows from investing activities Purchase of tangible fixed assets -14495.21 -17482.38 (Increase)/ Decrease in Capital Work in Progress 2097.04 -127.54 (Increase)/ Decrease in other Non-current Assets - -

Increase/ (Decrease) in other long term Liabilities 18653.90 44912.49 Increase/ (Decrease) in other long term Provisions 83.24 -138.25 Purchase of intangible fixed assets 0.00 0.00 Purchase of long term investments 0.00 0.00 (increase)/Decrease in other non-current assets -14629.60 -15711.93 (increase)/Decrease in other long term receivables -13.65 -9.36 Interest received 104.41 53.54 Net cash from investing activities (B) -8199.87 11496.57 Cash flows from financing activities Proceeds from issuance of share capital 1473.03 2500.00 Increase/(Decrease) in other long term borrowings 582.72 3034.03

Contributions/ Grants and subsidies towards Cost of Capital Assets 3606.46 3751.90

Interest paid -11917.55 -9379.18 Dividends paid 0.00 0.00 Dividend distribution tax 0.00 0.00 Proceeds from ESOPs 0.00 0.00 Net cash used in financing activities (C) -6255.34 -93.25

Net increase in cash and cash equivalents (A) + (B) + (C) 940.11 -1498.00

Cash and cash equivalents at beginning of period 2799.58 4297.58

Cash and cash equivalents at end of period 3739.69 2799.58


Financial Advisor

Sd/- (H. NAGESH)

Director (Tech)

In terms of our Report of even date for GANESH & SUDHIR


Managing Director





39


SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

I) SIGNIFICANT ACCOUNTING POLICIES FOR THE PERIOD ENDED 31-03-2012.

a) Basis of preparation of financial statements:

The Company is registered under the provisions of Companies Act, 1956. The

Company is a distribution licensee under Section 14 of the Electricity Act,

2003. The provisions of the Electricity Act, 2003 read with the rules made

there under prevails wherever the same are inconsistent with the provisions of

the Companies Act, 1956 in terms of Section 174 of the Electricity Act, 2003.

The Accounts of the company have been prepared on the basis of going

concern concept and under the historical cost convention. The Company

adopts accrual basis in preparation of its accounts to comply with all material

aspects of Generally Accepted Accounting Principles (GAAP) and the

accounting standards issued by the Companies (Accounting Standard) Rules,

2006 as per notification No. G.S.R 739 (E) dated 7th December, 2006.

However, rebate for early payment and interest on delayed payment to power

producers are accounted for as intimated by them. Further, in certain areas

where different accounting treatment has been prescribed under GAAP and

Electricity (Supply) (Annual Accounts) Rules 1985 (ESAAR, 1985) for an item

of income/expenditure or Assets/Liabilities, the accounting treatment

prescribed under ESAAR 1985 has been adopted as per Section 174 of the

Electricity Act, 2003. Further, assets and liabilities created under applicable

electricity laws continue to be depicted under appropriate heads in the Balance

Sheet.

b) Use of Estimates:

In the preparation of the Financial Statements, the Company has made

estimates and assumptions that affect the reported amounts of assets and

liabilities on the date of the financial statements and the reported amounts of

revenues and expenses during the reported period to conform with the

generally accepted accounting principles. Differences between actual results

and estimates are recognized in the period in which results are known /

materialized.

c) Fixed Assets:

i) Fixed assets which are acquired or constructed are recorded in the books

of accounts and disclosed in annual accounts at actual cost of acquisition/

construction or at standard rate, as the case may be, less accumulated

depreciation. Cost of acquisition is inclusive of freight, duties & taxes,

levies, borrowing costs and all incidentals attributable to bringing the asset

to its working condition.

ii) In case of fixed assets, for new projects / extension, the related expenses

and interest cost up to the date of commissioning attributable to such

project / expansion are capitalized.

iii) Fixed Assets other than those classified as „Furniture & Fixture‟ and

„Office Equipments‟, costing individually up to Rs 500 are written off to

Profit and Loss Account during the year.

40


iv) Assets transferred by M/s Karnataka Power Transmission Corporation Limited (KPTCL) have been stated at the cost of transfer indicated by KPTCL in transfer document.

v) Contributions, grants and subsidies towards cost of Fixed Assets have not been reduced from the cost of assets but have been shown separately under Capital Reserve Head in the Balance Sheet. The depreciation pertaining to such Fixed Assets is fully charged to Profit and Loss account. The ESAAR, 1985 provides for accounting of such grants separately and not to reduce it from the value of respective Fixed Assets.

d) Impairment of Assets:

The Company at the Balance Sheet date assesses individual fixed assets and group of assets constituting “Cash Generating Units” (CGU) for impairment, if circumstances indicate a possibility or warrant such assessment. If carrying cost is higher than recoverable amount provision will be made for impairment of state of assets or CGU.

e) Depreciation:

i) Depreciation on all assets (except lease hold land) is provided on straight line method over the useful life of the asset at the rates approved in KERC Tariff Order 2009 dated 25th November 2009. Depreciation on released assets re-issued to works and categorized as assets, is charged at the rates prescribed vide said regulation considering the WDV as the base value. This system is followed consistently.

ii) In respect of Lease hold land where entire lease amount is paid in advance, depreciation is charged every year by an fixed amount which is arrived by dividing the total Lease cost by the number of years of lease so that 100% of the leased cost of land is recovered over the lease period.

iii) Depreciation on all assets excluding land is provided up to 90% of the original cost. Depreciation is not charged on those assets for which the accumulated depreciation as at the Balance Sheet date is 90% of the original cost.

iv) Depreciation on additions of assets is provided on pro-rata basis from the following month in which the asset is available for use. Depreciation on disposed assets / assets withdrawn from use is provided up to the month in which the asset is disposed / withdrawn.

f) Capital Work in Progress:

Material issued to Capital Work is valued at a price which is determined on the basis of previous purchases and prevailing market rates, which is stated as Common Standard Rates for all ESCOMs jointly published by all the ESCOMs in the state of Karnataka.

g) Inventory valuation:

Inventories are valued at Standard Rate, which is determined by MESCOM from time to time based on previous purchase price and prevailing market rates (published as O & M Schedule of Rates). The difference in actual cost of material received and standard issue rate represents “Material Cost Variance”. At the end of the year debit balance if any, under Material Cost Variance is charged to Profit and Loss Account and credit balance if any is transferred to reserve account called “Reserve for Material Cost Variance”.

41


Dismantled Assets are valued at written down value of assets. Stock of non-

reusable or reusable materials for which facilities for repair do not exist are

valued at scrap rates indicated in the schedule of rates.

h) Revenue Recognition:

Sale of Electricity is accounted, based on tariff rates approved by the

Karnataka Electricity Regulatory Commission (KERC). Revenue from sale of

energy is accounted on accrual basis. Revenue is reduced by unbilled

revenue of previous year included in current year‟s revenue. It is increased by

the unbilled revenue of current year and revenue due from consumers whose

ledger accounts are yet to be opened.

i) Subsidy from Government of Karnataka:

GoK vide notification no. EN 55 PSR 2008 dtd 14.09.2008 has introduced a

scheme of free power supply to IP sets having capacity of upto 10 HP

(inclusive of 10 HP). Further GoK is also providing free power supply to

Bhagyajyothi and Kutira jyothi consumers having monthly consumption upto

18 units.

In accordance with the above said notification MESCOM has been providing

free power to IP sets & BJ/KJ consumers and the cost thus involved in

providing free power supply to those consumers is making good by GoK. The

difference between the amount of free power supply to BJ/KJ and IP set

consumers and the actual amount received from the Govt. has been

accounted as receivable from the GoK.

The Hon‟ble KERC in respect of Review Petition No. 04/2010 filed by GoK has

ordered for the payment of trued-up subsidy amount to ESCOMs in 36 monthly

installments. Accordingly a sum of Rs. 13287.00 lakhs was due to MESCOM.

Out of which Rs. 8377.00 lakhs has been received upto 31.03.2012 and the

balance was accounted as receivable from the GoK.

j) Regulatory Asset:

In accordance with tariff order of Hon‟ble Karnataka Electricity Regulatory

Commission, dated 7th December 2010 page No. 80, MESCOM has treated

Rs. 7593 lakhs as regulatory assets (deferred revenue expenditure) for the FY

2011. Out of the said amount the Hon‟ble KERC, in the said order has

ordered to recover the regulatory asset at the rate of Rs. 12 paise per unit

during FY 2012. Accordingly Rs. 4227.08 lakhs has been recovered by

reducing the revenue and regulatory asset during FY 2012 at the rate of

12 paise per unit for 3522.57 MU sold.

The remaining amount of Rs. 3365.92 lakhs will be recovered in FY 2013.

k) Employee Benefits:

i) All the employees of the Company are on deputation from KPTCL.

ii) In respect of Pension and Gratuity, provision for contribution to

KPTCL/ESCOMs‟ Pension & Gratuity Trust is made on the formula

evolved by the Trust based on the actuarial valuation undertaken by

KPTCL/ESCOMs‟ Pension & Gratuity Trust. The contribution towards

pension and gratuity is accounted at the rates noted below:-

Pension - 29.11% of Basic Pay + Dearness Pay +Dearness Allowance

Gratuity - 3.34% of Basic Pay + Dearness Pay

42


For those employees who have joined MESCOM on or after 1.4.2006, the

contributory pension scheme is applicable wherein 10% of the Basic Pay +

Dearness Pay + Dearness Allowance are contributed to the pension fund with

matching contribution of employees.

iii) Provision for ELS & FBF:

Provision towards Earned Leave Encashment and Family Benefit Fund has

been created based on the Actuarial Valuation carried out as on 31.03.2012.

l) Provision for Bad and Doubtful Debts:

Provisions for Bad and Doubtful Debts is made in the accounting divisions at

4% (as per para 4.2 of Annexure V of ESAAR, 1985) on the balance of sundry

debtors for sale of power, outstanding as at the end of the year.

m) Accounting for Grants:

As per para 2.33 / 2.34 / 2.35 of Electricity (Supply) Annual Accounts Rules,

1985, Grants received towards capital expenditure are shown separately

under capital grants and are neither diminished as deferred income nor cost of

assets has been reduced to the extent of such grants.

n) Contributions from consumers:

As per para 2.33 / 2.34 / 2.35 of ESAAR, 1985, consumer contributions

received for capital expenditure are shown separately under contributions and

are neither diminished as deferred income nor cost of assets have been

reduced to the extent of contributions. Further, the Company has accounted a

sum of Rs 1398.34 lakhs as contribution from consumers towards capital

assets which is only book value (at standard rates) of the assets transferred to

the Company for works executed by the consumers and does not represent

any value received in cash.

o) Investments:

I) Investment in Power Company of Karnataka Ltd (PCKL):

An amount of Rs 1.00 lakh paid towards the initial minimum share capital

and Rs 250 lakhs paid towards networth of Power Company of Karnataka

Ltd (PCKL) have been accounted as investments under account code

20.291.

II) Long term investments are carried at cost less provisions if any for

diminutions in the value of such investments. Current investments are

carried at Cost or fair value whichever is lower.

p) Compliance to Accounting Standards:

As per Section 616 of the Companies Act, 1956, the provisions set out in

ESAAR 1985 will prevail over the provisions of Companies Act, 1956, in the

event of any conflict between ESAAR, 1985, and Accounting Standards. The

Company has complied with accounting standards to such extent it does not

conflict with ESAAR, 1985.

43


NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.3.2012

NOTE : 01 SHARE CAPITAL (Rs. In lakhs)

Sl. No.

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

1.1 Authorised Capital

30,00,00,000 Equity shares of Rs. 10/- each

30000.00 30000.00

1.2 Issued, Subscribed and Paid up

Equity Share Capital (7,17,80,000 shares of Rs. 10 each)

52.301 7178.00 5705.00

100289931 shares of Rs. 10 each are allotted as fully paid up to GOK without payment being received in Cash

52.302 10028.99 17206.99 10028.99 15733.99

TOTAL

17206.99

15733.99

1.3 Except one Share each held by the 10 Directors, remaining entire No. of share are held in the name of His Excellence Governor of Karnataka.

1.4 The reconciliation of the No. of Equity shares outstanding is set out below:

Particulars As at 31.03.2012 As at 31.03.2011

No. of Equity shares at the beginning of the Year 157339931 157339931

Add: No. of Equity shares issued during the Year 14730000 -

Less : No. of Equity shares cancelled on buy back during the Year

- -

No. of Equity shares at the end of the Year 172069931 157339931

NOTE : 02 RESERVES AND SURPLUS

(Rs. In lakhs)

Sl. No.

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

2.1 Capital Reserve:

As per Last Balance Sheet 56.2 132.66 132.66

Add: Additions during the Year

- -

Less: Utilised during the Year

- -

132.66 132.66

44


NOTE : 02 RESERVES AND SURPLUS

(Rs. In lakhs)

Sl. No.

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

2.2 Reserve for Material Cost

Variance


Add: Additions during the Year - 23.21

Less: Utilised during the Year 430.98 -

1914.79 2345.77

2.3 Profit and Loss Account

(Surplus)


Add: Additions during the Year 641.19 170.11

Less: Utilised during the Year - -

5884.57 5243.38

2.4

Contributions, grants and

subsidies towards cost of

Capital assets

2.4.1 Consumers contribution towards

cost of capital assets

55.1 14761.84 10724.40

2.4.2 Subsidies towards Cost of

Capital Assets

55.200 1193.33 1193.33

2.4.3 State Govt. grants towards cost

of capital works

55.300 400.00 400.00

2.4.4 APDRP Grant 55.301 3675.81 3675.81

2.4.5 PMGY Grant 55.302 56.25

56.25

2.4.6 RGGVY Grant 55.303 6442.91 6442.91

2.4.7 Special Grant Towards Capital

works under APDRP

55.500 3670.32 3670.32

2.4.8 GOK Grant Towards

energization of IP sets under

Ganga Kalyana Scheme

55.501 53.00 53.00

2.4.9 Central Govt. Grant towards

Power Sector Automation

55.502 63.00 63.00

Sub - Total 30316.46 26279.02

TOTAL

38248.48

34000.83

45


NOTE : 3 SHARE DEPOSIT (SHARES PENDING ALLOTMENT)

(Rs. In lakhs)

Sl. No

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

3.1 Share Deposit from GOK Pending Allotment

52.303

0.03

-

TOTAL

0.03

-

NON -CURRENT LIABILITIES

NOTE: 04 LONG TERM BORROWINGS

(Rs. In lakhs)

Sl. No Particulars Account Code As at 31.03.2012 As at 31.03.2011

4.1 TERM LOANS

4.1.1 SECURED LOANS

4.1.1.1 From Banks 53.500 29247.08 28663.63

4.1.1.2 From Others 53.301, 3.308,

53.309, 53.311

963.40 1029.31

Sub- Total 30210.48 29692.94

4.1.2 UN-SECURED LOANS

4.1.2.1 From Banks

4.1.2.2 From Government 53.306,53.307

54.600,54.700,

54.701, 54.702

720.75 504.73

4.1.2.3 From Others 54.305, 53.310

53.960

778.07 928.91

Sub- Total 1498.82 1433.64

TOTAL

31709.30

31126.58

4.1.2.4 At the time of unbundling of transmission and distribution activities and formation

of Electricity Distribution Companies, the Government of Karnataka has

transferred certain loans taken by M/s KPTCL to the Company as part of transfer

of assets and liabilities. The interest payment as intimated by KPTCL has been

charged off in the books of accounts since the assets have been commissioned.

4.1.2.5 The loan balances between KPTCL and the Company is subject to reconciliation

and confirmation.

46


4.1.2.6 During the year 2010-11 Govt. of Karnataka has released a sum of Rs. 164.96 lakhs under Special Component Sub-Plan (SCSP) and Rs. 108.07 lakhs under Tribal Sub-Plan (TSP) for the infrastructure development in Power Sector as loan. The same was converted into Equity by a separate order No. EN 33 PSR 2011 Bangalore, Dated 30.09.2011 in the year 2011-12.

Further, During the year 2011-12 Govt. of Karnataka has released a sum of Rs. 275.00 lakhs under Special Component Sub-Plan (SCSP) and Rs. 179.48 lakhs under Tribal Sub-Plan (TSP) for the infrastructure development in Power Sector. As the Govt. has not stated the Terms and Conditions and rate of interest of the Loan, MESCOM has not made any financial provision for the payment of interest or repayment of principal for the year 2011-12 in the Annual Accounts.

4.1.2.7 Reconciliation of loan Balances

Sl. No.

Name of the Bank / Lender

Loan Drawn

Term

of Loan

in Yrs.

Floating Rate of Interest as

on 31.03.2012

(%)

Loan Installment due for 2012-13 Loan

Balance as on

01.04.2011

Loan Drawn during 2011-12

Repayment

during 2011-12

Loan Balance

as on 31.03.2012

No of Instal ments

Amount

I Term Loan-Secured

A Commercial Banks

1 Syndicate Bank Loan from Syndicate Bank is secured by a first charge (floating) on fixed assets viz., transformers, transmission lines, meters, poles, conductors, cables and computers worth Rs. 40.00 crores situated at Company jurisdiction

4000 7 13.25 12 514.39 3622.47 449.49 3172.98

2 Syndicate Bank Secured by a first charge on assets such as Plant & Machinery, line cable networks including poles, towers, Transformers, Meters etc, Furniture, Office equipment etc located in Dakshina Kannada, Udupi, Shimoga & Chikmagalur Districts.

9800 8 11.75 12 1428.60 1700.00 8100.00 20.24 9779.76

3 Corporation Bank secured by Hypothecation of present and future current assets of the Company.

5000 6 11.5 4 742.49 1742.49 1000.00 742.49

10000 8 12.6 12 1428.60 9523.80 1450.12 8073.68

4 Vijaya Bank Secured by Hypothecation of the whole of present and future current assets including inventories and book debts belonging to the Company situated at Corporate Office.

5000 6 12.15 12 598.89 1599.51 1000.62 598.89

47



Sl. No.


Loan Drawn

Term

of Loan

in Yrs.


on 31.03.2012

(%)


Balance as on

01.04.2011


Repayment

during 2011-12

Loan Balance

as on 31.03.2012

No of Instal ments

Amount

5 Punjab & Sind Bank Secured by Hypothecation of the whole of present and future current assets including inventories and book debts belonging to the Company situated at Corporate Office.

10000 8 11.75 12 1428.57 7261.90 1428.57 5833.33

6 UCO Bank Secured by Hypothecation of the whole of present and future current assets including inventories and book debts belonging to the Company situated at Corporate Office.

6000 9 13.25 4 750.00 5250.00 750.00 4500.00

7 Indian Bank Secured by Hypothecation of the whole of present and future current assets including inventories and book debts belonging to the Company situated at Corporate Office.

5000 9 12 4 625.00 4687.50 625.00 4062.50

Sub-Total 54800 7516.54 35387.67 8100.00 6724.04 36763.63

B Others

1 Loans from Rural Electrification Corporation Works at Mangalore and Udupi Town Secured by hypothecation of all existing unencumbered moveable properties including Machinery, Equipments, Machinery Spare, Tools, Implements and Accessories installed / created / erected and all future moveable properties including machinery etc purchased out of the loan amount.

4.58 4.58

2 REC– APDRP works Works at Shimoga, Bhadravathi and Chikmagalur are secured by way of first charge by hypothecation of moveable machinery, equipments, machinery spares, tools, implements and

2.54 158.35 2.54 155.81

48



Sl. No.


Loan Drawn

Term

of Loan

in Yrs.


on 31.03.2012

(%)


Balance as on

01.04.2011


Repayment

during 2011-12

Loan Balance

as on 31.03.2012

No of Instal ments

Amount

accessories installed and equipments created under the project and procured out of loan.

3 REC – General Projects at Vogga, Kukkipady and Nellyadi in Dakshina Kannada district, are secured by first charge by hypothecation of all moveable machinery, equipments, machinery spares, tools, implements and accessories installed and equipments created under the project and procured out of loan sanctioned by REC.

63.37 570.34 63.37 506.97

5 PFC-R-APDRP works Loan from M/s PFC is secured by 1.moveable properties of newly financed Assets under projects installed at MESCOM project Area. 2. Existing and proposed Moveable plant and Machinery of the Company.

361.96 361.96

Sub-Total - 65.91 1095.22 - 65.91 1029.31

Total Secured Loans 54800 7582.45 36482.89 8100 6789.95 37792.95

II Term Loan-Un-Secured

1 APDRP-REC Loan payable to KPTCL.

150.84 314.42 150.84 163.58

2 PMGY Loan Account 7.66 109.74 7.66 102.08

3 GOK loan for energization of IP sets under GK scheme.

12.00 60.00 12.00 48.00

4 Central Govt. Loan towards Power Sector Automation.

14.70 102.90 14.70 88.20

5 Loan from GOK - Interest free.

62.34 62.34

6 REC – RGGVY Works 765.32 765.32

7 Loan from GOK under SCSP.

129.50 310.46 164.96 275.00

8 Loan from GOK under TSP

74.61 212.94 108.07 179.48

Sub-Total - 185.20 1618.83 523.40 458.23 1684.00

TOTAL LONG TERM LOANS

54800 7767.65 38101.73 8623.40 7248.18 39476.95

Term loan repayment in next year.

6975.15 7767.65

Net long term loan. 31126.58 31709.30

Note : The amount shown under column “ Repayment during 2011-12” above includes conversion of SCSP and TSP loans from GOK amounting to Rs. 273.03 lakhs ( Rs. 164.96 lakhs + Rs. 108.07 lakhs) into equity during FY 2011-12.

49


NOTE: 05 DEFERRED TAX LIABILITIES (NET)

(Rs. In lakhs)


-NIL-

NOTE: 06 OTHER LONG TERM LIABILITIES

(Rs. In lakhs)


6.1 Trade Payables

6.1.1 M/s KPCL 41.108 39944.53 29227.31

6.1.2 Interest payable to

M/s KPCL

46.430 15903.67 10752.57

Sub-Total 55848.20 39979.88

6.2 Others

6.2.1 Security Deposits from

consumers:

6.2.1.1 Meter Security Deposits 47.603 to 47.606 2030.42 1731.51

6.2.1.2 Initial/ Additional Security

Deposits

48.100 to 48.200 29332.93 26161.42

Sub- Total 31363.35 27892.93

6.2.2 KPCL, KPTCL & Other

ESCOMs

6.2.2.1 M/s KPCL 42.203, 42.213, 3.48 3.48

6.2.2.2 M/s KPTCL 42.214, 42.219,

42.224, 42.229,

46.106

4004.10 4001.41

6.2.2.3 M/s BESCOM 42.215, 42.220,

42.225, 42.230

1370.57 1270.09

6.2.2.4 M/s HESCOM 42.216, 42.222,

42.232

167.71 109.07

6.2.2.5 M/s GESCOM 42.233 2056.79 1976.00

6.2.2.6 M/s CESCO 42.790 2430.05 2410.56

Sub- Total 10032.70 9770.61

50


NOTE: 06 OTHER LONG TERM LIABILITIES

(Rs. In lakhs)


6.2.3 Staff related Liabilities

6.2.3.1 Security deposit from employees

46.920 0.62 1.06

Sub-Total 0.62 1.06

6.2.4 Liability to Suppliers and Contractors

6.2.4.1 Security Deposits in cash from Suppliers / Contractors

46.101 394.43 552.32

6.2.4.2 Retention Money- Bill amount retained as per terms of purchase order/ turnkey contract

46.104 2134.26 2944.15

Sub-Total 2528.69 3496.47

6.2.5 Payables to GOK

6.2.5.1 BRP - II recoveries 46.202 to 46.207 40.75 40.75

6.2.5.2 Amount recoverable from Govt. towards Bhagya Jyothi Works

28.816 109.22 109.22

Sub-Total 149.97 149.97

6.2.6 Others

6.2.6.1 Stale Cheques 46.910 14.46 3.61

6.2.6.2 Miscellaneous deposits 46.966 35.15 24.71

Sub-Total 49.61 28.32

TOTAL

99973.14

81319.24

6.7 The balance of consumers security deposit held as per accounts and consumers' ledger accounts are subject to reconciliation.

NOTE: 07 LONG TERM PROVISIONS

(Rs. In lakhs)

Sl. No.

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

7.1 Provisions for Employee benefits

7.1.1 Provision for earned leave encashment 44.130 1739.07 1598.90

7.1.2 Provision for Family Benefit Fund

44.141, 44.142, 44.143

507.56 564.49

Sub-Total

2246.63 2163.39

TOTAL 2246.63 2163.39

51


CURRENT LIABILITIES

NOTE: 08 SHORT TERM BORROWINGS

(Rs. In lakhs)

Sl. No. Particulars Account

Code As at 31.03.2012 As at 31.03.2011

8.1 Bank Overdraft

8.1.1 State Bank of Mysore 50.210 7179.00 2548.12

8.1.2 Vijaya Bank 50.260 1883.61 1551.97

Sub-Total 9062.61 4100.09

TOTAL

9062.61

4100.09

NOTE: 09 TRADE PAYABLES

(Rs. In lakhs)

Sl. No Particulars Account

Code As at 31.03.2012 As at 31.03.2011

9.1 LIABILITY FOR PURCHASE OF POWER

9.1.1 M/s. KPCL 41.108 24304.37 10717.21

9.1.2 M/s. NTPC RSTPS 41.110 1034.19 1025.59

9.1.3 M/s. Madras Atomic Power Station

41.111 23.00 24.30

9.1.4 M/s. Neyveli Lignite Corporation Ltd.,

41.112 1803.05 1483.58

9.1.5 M/s. NPCIL - Kaiga Generating Station

41.114 322.90 314.45

9.1.6 M/s. Sandur Power Co. Ltd. 41.115 251.73 440.52

9.1.7 M/s. Sahyadri Power Company Ltd.,

41.116 4.86 3.52

9.1.8 M/s. Kalson Power 41.118 27.48 49.55

9.1.9 M/s. Subhash Kabini 41.119 100.39 147.59

9.1.10 M/s. Graphite India Ltd., 41.120 - 38.62

9.1.11 M/s. Maruthi Power Gen Hemavathi Pvt. Ltd.,

41.122 - 37.44

9.1.12 M/s. Moodabagil Power Pvt. Ltd.

41.123 4.77 5.13

9.1.13 M/s. BPCL ( NERIA) 41.124 - 1.76

9.1.14 M/s JTPCL 41.125 1894.11 7285.70

9.1.15 M/s. Mrujara Power Plant 41.126 7.91 6.38

9.1.16 M/s. Rayalseema Alkalies 41.129 9.12 193.91

52


NOTE: 09 TRADE PAYABLES

(Rs. In lakhs)


Code As at 31.03.2012 As at 31.03.2011

9.1.17 M/s. Tata Company Limited 41.131 1055.74 751.97

9.1.18 M/s. UPCL 41.132 1595.43 1047.46

9.1.19 M/s Wind Mill Projects 41.140 801.47 502.57

9.1.20 M/s PGCIL 41.173 538.25 305.57

9.1.21 M/s Mysore Paper Mills Ltd 41.195 - -

9.1.22 M/s. NTPC VVNL 41.198 -

584.43

9.1.23 M/s. PTC India Limited 41.199 289.17

3891.46

9.1.24 M/s Indian Energy Exchange 41.200 - -

9.1.25 M/s. Lanco Electric Utility Ltd.

41.201 2.92 0.92

9.1.26 M/s. Shamili Hydel Power Project

41.202 61.66 60.41

9.1.27 M/s. Sagar Power (Dandela) Pvt. Ltd

41.203 - -

9.1.28 M/s. Soham mannapitlu Power Pvt. Ltd

41.204 - 27.75

9.1.29 M/s. Sagar Power (Neerukatte) Pvt. Ltd

41.205 - -

9.1.30 M/s. AMR Power Pvt Ltd 41.206 - 16.97

9.1.31 M/s. Cogeneration Units 41.208 1566.36 8.32

9.1.32 Sundry creditors towards Peak Power Purchase

41.210 341.67 -

9.1.33 Payable to KPTCL in respect of Wind Mill Projects

41.141 28.28 22.09

Total Power Purchase Liability

36068.83 28995.17

TOTAL

36068.83

28995.17

NOTE 10: OTHER CURRENT LIABILITIES

(Rs. In lakhs)


Code As at 31.03.2012 As at 31.03.2011

10.1 Current Maturities of Long Term Debts

10.1.1 Term Loan Installment due for repayment within ONE Year

10.1.1.1 Loans installment due to Commercial Banks

51.100 270.84 270.83

10.1.1.2 Loan drawn by MESCOM from REC– APDRP works

53.308 2.54 2.54

53



(Rs. In lakhs)


Code As at 31.03.2012 As at 31.03.2011

10.1.1.3 Loan drawn by MESCOM from REC – General

53.309 63.37 63.37

10.1.1.4 Loans from Commercial Banks 53.500 7516.54 6724.05

10.1.1.5 APDRP-REC Loan payable to KPTCL

53.305 150.84 150.84

10.1.1.6 PMGY Loan Account 53.306 7.66 7.66

10.1.1.7 GOK loan for energization of IP sets under GK scheme

53.307 12.00 12.00

10.1.1.8 Central Govt. Loan towards Power Sector Automation

54.600 14.70 14.70

Sub-Total 7767.65 6975.16

10.2 Interest Accrued but not due on Borrowings

- -

10.3 Interest Accrued and due on Borrowings

- -

10.4 Income received in Advance - -

10.5 Other Payables

10.5.1 LIABILITY FOR SUPPLIES / WORKS

10.5.1.1 Liability for supply of Materials 42.101 542.14 595.09

10.5.1.2 Sundry creditors / Control Account

42.201 533.42 156.73

10.5.1.3 Contractors Control Account 42.401 713.82 622.67

10.5.1.4 Liability to Contractors 42.501 0.73 -

10.5.1.5 Provision for work completed but not commissioned where the expenditure is not booked.

42.601 2614.14 2309.57

Sub-Total 4404.25 3684.06

10.5.2 Statutory Dues

10.5.2.1 Income tax deducted at source on payment to contractors

46.924 12.41 14.12

10.5.2.2 Income tax deducted at source on other payments

46.925 0.73 0.25

10.5.2.3 Sales tax deducted at source and payable to department

46.927 2.67 1.73

10.5.2.4 Sales tax payable 46.951 0.73 0.12

54



(Rs. In lakhs)


Code As at 31.03.2012 As at 31.03.2011

10.5.2.5 Amount deducted from contractors bills towards PF, ESI & CESS

46.930 8.68 7.52

10.5.2.6 ESI Contributions recoverable form bill amount of contractors and payable to ESI Corporation

46.931 0.84 0.10

10.5.2.7 Amount of CESS deducted at source and payable to the department

46.932 2.05 4.60

10.5.2.8 Employees PF and departmental Share of PF payable a/c

46.957 - 0.01

Sub-Total 28.11 28.45

10.5.3 Employee related liabilities

10.5.3.1 Liability towards Pension & Gratuity Trust

44.122 1347.07 636.29

10.5.3.2 Liability towards contribution to newly defined contributory pension scheme

44.150 31.15 23.14

10.5.3.3 Unpaid Salaries 44.210 0.55 9.22

10.5.3.4 Unpaid Bonus 44.220 0.23 0.25

10.5.3.5 Salary payable 44.310 19.05 16.83

10.5.3.6 Salary payable to contract employees

44.311 0.82 0.91

10.5.3.7 Bonus payable 44.320 9.96 33.47

10.5.3.8 Ex-gratia payable 44.330 142.33 121.82

10.5.3.9 Sundry creditors for expenses 46.410 61.46 38.04

10.5.3.10 Sundry creditors for T.A to contract employees

46.411 - 0.04

10.5.3.11 Security deposit from employees

46.920 0.21 0.15

Sub-Total 1612.83 880.16

10.5.4 Payables to GOK

10.5.4.1 Electricity tax 46.300 1286.25 1040.13

10.5.4.2 Compounding fee 46.301 0.94 1.18

10.5.4.3 Inspection charges payable to Govt.

46.440 1.36 1.94

10.5.4.4 Royalty payable to Govt. 46.450 0.02 0.17

Sub-Total 1288.57 1043.42

55



(Rs. In lakhs)


Code As at 31.03.2012 As at 31.03.2011

10.5.5 Payables to Consumers

10.5.5.1 Interest on ISD/ASD 48.340 1510.25 1395.78

10.5.5.2 Interest on MSD 48.350 184.39 163.87

10.5.5.3 Other Deposits from Consumers

47.601 to

47.602

43.83 42.42

Sub-Total 1738.47 1602.07

10.5.6 Others

10.5.6.1 Security Deposits in cash from Suppliers / Contractors

46.101 264.50 182.16

10.5.6.2 Retention Money-Bill amount retained as per terms of purchase order/turnkey contract

46.104 760.72 214.36

10.5.6.3 Liability for expenses 46.430 10635.63 10482.42

10.5.6.4 Stale Cheques 46.910 0.19 8.05

10.5.6.5 Advance received for sale of stores scrap etc.,

46.922 - 0.46

10.5.6.6 Amount recoverable from salary of Company employees and payable to other department / other institutions

46.928 68.62 52.74

10.5.6.7 Amount recovered from salary of employees towards employees CPS

46.952 28.54 20.55

10.5.6.8 Miscellaneous deposits 46.966 0.97 1.72

10.5.6.9 Excess credit afforded by banks pending reconciliation - Canara Bank

46.974 0.01 0.01

10.5.6.10 Excess credit afforded by banks pending reconciliation - Syndicate Bank

46.975 0.16 0.16

10.5.6.11 Excess credit afforded by banks pending reconciliation - Corporation Bank

46.976 0.01 0.01

10.5.6.12 Amount payable to other Departments against DCW works

46.967, 46.970

63.97 63.97

10.5.6.13 Electrification / Service Connection

47.300 2698.79 2744.75

56



(Rs. In lakhs)


Code As at 31.03.2012 As at 31.03.2011

10.5.6.14 Stock Excess pending Investigation.

22.810 4.34 -

10.5.6.15 Sundry debtors for sale of power - BJ scheme

23.101 128.50 119.21

10.5.6.16 Sundry debtors for sale of power - LT3 Commercial

23.115 78.01 76.55

10.5.6.17 Sundry debtors for sale of power-temporary power supply

23.145 1361.83 1183.05

10.5.6.18 Advance paid to KPTCL towards transmission charges

28.911 26.13 -

Sub-Total 16120.92 15150.17

10.5.7 Inter Unit Accounts (Net) 31 to 37 133.08 133.08

TOTAL

33364.72

29767.40

NOTE: 11 SHORT TERM PROVISIONS

(Rs. In lakhs)

Sl. No.

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

11.1 Provision for Employee benefits

11.1.1 Provision for earned leave encashment

44.130 475.16 157.53

11.1.2 Provision for Family Benefit Fund 44.143 130.00 123.91

Sub-Total 605.16 281.44

11.2 Others

11.2.1 Provision for Income Tax 46.800 93.57 93.57

TOTAL

698.73

375.01

57


Note : 12 Tangible Assets

(Rs. in Lakhs)

Particulars

Original Cost Depreciation Net Block Value

A/c

Code

As at

01.04.2011

Additions

during the

Year

Deductions/

Retirements

during the

Year

As at

31.03.2012

A/c

code

As at

01.04.2011

For the

Year

Deductions/

Adjustments

during the

Year

As at

31.03.2012

As at

31.03.2011

As at

31.03.2012

Tangible Assets

Land: Free hold 10.1

448.73 3.92 - 452.65 12.1

- - - - 448.73 452.65

Lease hold 11.08 - 0.95 10.13 0.58 0.37 0.95 - 10.50 10.13

Buildings 10.2 2041.04 275.03 - 2316.07 12.2 429.60 73.22 - 502.82 1611.44 1813.25

Hydraulic Works 10.3 177.28 17.08 - 194.36 12.3 39.76 9.50 - 49.26 137.52 145.10

Other Civil Works 10.4 28.21 14.88 - 43.09 12.4 5.73 1.03 - 6.76 22.48 36.33

Plant & Equipments 10.5 18958.35 5003.08 2063.09 21898.34 12.5 4401.82 1153.37 439.83 5115.36 14556.53 16782.98

Lines, Cable Networks 10.6 101372.74 10848.55 360.34 111860.95 12.6 34063.73 4858.20 283.11 38638.82 67309.01 73222.13

Vehicles 10.7 336.07 22.56 5.54 353.09 12.7 279.08 5.07 4.98 279.17 56.99 73.92

Furniture & fixtures 10.8 228.28 25.07 0.91 252.44 12.8 102.87 15.11 0.82 117.16 125.41 135.28

Office Equipments 10.9 99.40 -28.04 0.35 71.01 12.9 42.79 0.78 0.25 43.32 56.61 27.69

TOTAL

123701.18 16182.13 2431.18 137452.13

39365.96 6116.65 729.94 44752.67 84335.22 92699.46

Previous Year's

Figures 10 107052.46 18996.38 2347.66 123701.18 12 35106.00 5099.02 839.06 39365.96 71946.46 84335.22

The account head 10.101 - Land free hold - includes an amount of Rs. 14.36 lakhs in respect of land purchased for Shikaripura Division from APMC, which has

covenant that the land cannot be sold to any one until completion of 10 years period from the date of purchase.

58


NOTE: 13 - INTANGIBLE ASSETS

(Rs. In lakhs)


Code As at 31.03.2012 As at 31.03.2011

----------NIL--------

NOTE: 14 CAPITAL WORKS IN PROGRESS

(Rs. In lakhs)

Sl. No.

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

14.1 Capital Works in Progress 14.000 7179.28 9310.18

14.2 Revenue expenses pending allocation over capital works - Interest

15.206 43.98 10.12

14.3 Preliminary expenditure on survey / feasibility studies of projects not yet sanctioned

17.301 0.47 0.47

Sub Total 44.45 10.59

TOTAL 7223.73 9320.77

14.4 An amount of Rs 224.83 lakhs towards interest on loan taken for capital works has

been capitalized during the year.

NOTE: 15 - INTANGIBLE ASSETS UNDER DEVELOPMENT

(Rs. In lakhs)


Code As at 31.03.2012 As at 31.03.2011

-------- NIL--------

NOTE : 16 NON- CURRENT INVESTMENTS

(Rs. In lakhs)


Code As at 31.03.2012 As at 31.03.2011

16.1 Investments:

16.1.1 Long Term Investments –

(Un-quoted at cost.)

16.1.1.1 Investment in share capital of Power Company of Karnataka Limited (25100 Equity shares of Rs. 1000 each)

20.291 251.00 251.00

TOTAL

251.00

251.00

59


NOTE: 17 DEFERRED TAX ASSETS (NET)

(Rs. In lakhs)

Sl. No.

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

-------- NIL--------

NOTE 18: LONG TERM LOANS AND ADVANCES

(Rs. In lakhs)

Sl. No.

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

18.1 Deposit with Others 28.935 256.60 242.94

TOTAL

256.60

242.94

NOTE 19: OTHER NON CURRENT ASSETS

(Rs. In lakhs)


Code As at 31.03.2012 As at 31.03.2011

19.1 Long Term Trade Receivables

19.1.1 1. Secured and considered Good

- -

19.1.2 2. Un-secured and considered Good

- -

19.2 Subsidy Recoverable from GOK

19.2.1 Subsidy / Grants receivable 28.620 8027.60 8027.60

Sub-Total 8027.60 8027.60

19.3 Others

19.3.1 Receivables from KPCL, KPTCL and Other ESCOMs

19.3.1.1 M/s KPTCL 28.826, 28.831, 28.836, 28.841,

28.881

9134.94 9135.07

19.3.1.2 M/s BESCOM 28.827, 28.832, 28.837, 28.842

13985.08 17162.16

19.3.1.3 M/s HESCOM 28.829, 28.839, 28.844

18156.18 2436.27

19.3.1.4 M/s GESCOM 28.840, 28.845 8492.04 7959.17

19.3.1.5 M/s CESCO 28.850, 28.851, 28.790

25149.22 23747.92

60


NOTE 19: OTHER NON CURRENT ASSETS

(Rs. In lakhs)


Code As at 31.03.2012 As at 31.03.2011

19.3.1.6 M/s KPCL (related to VVNL) 28.865, 28.874 4.09 4.09 Sub-Total 74921.55 60444.68

19.3.2 Other Receivables

19.3.2.1 Income tax /FBT paid in advance

28.821 3344.56 2452.66

19.3.2.2 Amount deposited with PF Authorities

46.930 177.63 177.63

19.3.3 Assets not in Use

19.3.3.1 Written down value (WDV) of Faulty / Dismantled Assets.

16.200 552.72 400.00

Sub-Total 4074.91 3030.29

TOTAL

87024.06

71502.57

19.2.1 The GOK vide order No. EN 34 PSR 2008 dated 19.08.2010 has ordered to refund the amount paid by the farmers during the period from 01.04.2001 to 31.03.2003 to them and the same is implemented by MESCOM and an amount of Rs. 31.79 Crs is shown as receivable from GOK.

NOTE 20: DEFERRED COSTS (Rs. In lakhs)

Sl. No.

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

--------- NIL ---------

NOTE 21: CURRENT INVESTMENTS

(Rs. In lakhs)

Sl. No.

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

--------- NIL---------

NOTE - 22 INVENTORIES, STORES AND SPARES

(Rs. In lakhs)

Sl. No.

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

22.1 Materials Stock Account

22.1.1 Materials Stock Account 22.610 3048.45 1485.10

22.1.2 Material imprest Account 22.641 18.64 22.33

22.1.3 Materials Account - Temporary works

22.731 5.71 7.20

Sub- Total 3072.80 1514.63

22.2 Written down value (WDV) of obsolete / scrapped assets.

16.100 177.49 311.47

TOTAL

3250.29

1826.10

,

61


NOTE: 23 TRADE RECEIVABLES

(Rs. In lakhs)


Code As at 31.03.2012 As at 31.03.2011

23.1 TRADE RECEIVABLES

23.1.1 Sundry Debtors for sale of

Power – LT, HT & Others

( Excluding Un billed

revenue)

23,

47.607,

47.609

40757.35 34344.60

Less :

23.1.1.1 Provision for withdrawal of

Revenue demand

23.800 -336.20 -376.44

23.1.1.2 Provision for Doubtful Dues

from consumers (Credit

Account)

23.900 -5300.26 -5082.98

Net Receivables against

Supply of Power

35120.89 28885.18

23.2 (Sundry debtors

outstanding for less than 6

months & considered

good)

11221.22 8963.57

23.3 (Sundry debtors

outstanding for more than 6

months & considered good)

23899.67 19921.61

TOTAL

35120.89

28885.18

23.1.1

23.1.2

The outstanding balance in Revenue Suspense Account representing collection

from consumers pending allocation for want of details has been shown as

deduction from the Sundry Debtors account since this amount is with the

Company.

The Trade receivables include an amount of Rs. 2219.78 lakhs being the amount

due from M/s Mysore Paper Mills (MPM) Bhadravathi. The principal amount

outstanding as on 28.02.2011 was Rs. 948.33 lakhs which was reconciled. But,

M/s MPM has not made any payments to clear these dues. Besides M/s MPM is

not paying even the monthly bills in full because of which the dues accumulated

to Rs. 2219.78 lakhs as on 31.03.2012. MESCOM is in the process of recovery

of the dues from M/s MPM, for which once the installation was disconnected on

03.07.2012, but later reconnected on the same day with the assurance of making

prompt payment of bills in future. The matter is being pursued with M/s MPM.

62


NOTE 24: CASH AND CASH EQUIVALENTS

(Rs. In lakhs)


Code As at

31.03.2012 As at

31.03.2011

24.1 Balances with Banks

24.1.1 Collecting Bank Accounts (Non-Operative)

24.300 1098.24 313.32

24.1.2 Disbursement Bank Account (Operative)

24.1.2.1 State Bank of Mysore 24.401 2.13 16.24

24.1.2.2 State Bank of India 24.402 3.11 5.32

24.1.2.3 Canara Bank 24.404 4.16 5.33

24.1.2.4 Syndicate Bank 24.405 34.80 29.68

24.1.2.5 Vijaya Bank 24.409 72.48 291.75

24.1.2.6 State Bank of Mysore 24.411 65.65 13.32

24.1.2.7 State Bank of India 24.412 18.65 2.65

24.1.2.8 Canara Bank 24.414 129.77 59.33

24.1.2.9 Syndicate Bank 24.415 565.66 61.17

24.1.2.10 Corporation Bank 24.424 17.28 134.13

24.1.2.11 Punjab Sind Bank 24.425 0.14 67.45

24.1.2.12 UCO Bank 24.426 0.01 243.00

24.1.2.13 AXIS Bank 24.427 0.11 0.05

24.1.2.14 Karnataka Bank 24.428 23.08 31.97

24.1.2.15 Indian Bank 24.429 2.07 42.87

Sub-Total 939.10 1004.26

24.2 Cash on Hand 24.110, 24.210

504.56 176.80

24.3 Others

24.3.1 Postage stamps on hand 24.120 2.23 1.77

24.3.2 Remittance to Head Office -Transit Account

24.500 4.20 4.40

24.3.3 Transfers from Head Office In Transit Account

24.600 113.87 1.19

24.4 Fixed deposits in Banks

24.4.1 Margin Money towards L.C. 20.280 348.65 319.00

24.4.2 Un-utilised R-APDRP fund 20.280 170.00 170.00

24.4.3 Un-utilised RGGVY fund 20.280 550.00 800.00

24.4.4 Others 20.280 8.84 8.84

Sub-Total 1077.49 1297.84

TOTAL

3739.69

2799.58

63


24.4.3 The Central Government through RECL has released capital subsidy / grant amount of Rs. 6442.91 lakhs and M/s. RECL has released Loan amounting to Rs. 765.32 lakhs as on 31.03.2012, for implementation of RGGVY Scheme in Chikmagalore and Shimoga districts to provide power supply to the consumers under BPL category. The unspent amount has earned interest of Rs. 99.76 lakhs upto 31.03.2012. Out of total funds of Rs. 7307.99 lakhs, Rs. 6698.63 lakhs has been spent for arranging payments of Initial Advance Bills for Supply of materials and Labour Bills etc. pertaining to RGGVY Project. Out of Unspent balance, Rs. 550.00 Lakhs is kept in fixed deposit with Vijaya Bank, Hampankatta Branch and remaining amount of Rs. 59.36 lakhs is retained in the Current account.

NOTE 25: SHORT TERM LOANS AND ADVANCES

(Rs. In lakhs)


Code As at

31.03.2012 As at 31.03.2011

25.1 Capital Advance

25.1.1 Secured Considered good

25.1.1.1 Advances to Suppliers (considered good & Fully Secured)

25.501 170.77 180.46

25.1.1.2 Advances to Contractors 26.6 1898.40 2624.38

25.1.2 Un-Secured Considered good - -

Sub-Total 2069.17 2804.84

25.2 Security Deposits

25.2.1 Secured Considered good - -


25.3 Loans and Advances to related Parties



25.4 Other Loans and Advances


25.4.2 Un-Secured Considered good

25.4.2.1 Loans and advances to Staff - Interest bearing

25.4.2.1.1 Advance of pay 27.201 - -

25.4.2.1.2 Travel advance 27.202 2.94 2.99

25.4.2.1.3 Festival advance 27.203 38.99 44.74

25.4.2.1.4 Medical advance 27.204 29.69 29.07

64


NOTE 25: SHORT TERM LOANS AND ADVANCES

(Rs. In lakhs)


Code As at

31.03.2012 As at 31.03.2011

25.4.2.1.5 Advances to staff against expenses

27.205 11.87 19.12

25.4.2.1.6 Bicycle advance 27.209 - -

25.4.2.1.7 Transformers / meters etc. issued for repairs to the Company personnel

27.210 4.04 9.44

Sub-Total 87.53 105.36

25.5 Advance paid to Power Company of Karnataka Limited

28.913 25.95 56.18

TOTAL

2182.65

2966.38

25.5 Rs. 99 lakhs paid towards working Capital of PCKL during FY 2007-08 is accounted under Account Code 28.913 as advance. After adjusting the revenue expenditure of M/s. PCKL for FY 2007-08 to FY 2011-12, the net balance under account code 28.913 is Rs. 25.95 lakhs.

NOTE 26: OTHER CURRENT ASSETS

(Rs. In lakhs)

Sl. No.

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

26.1 Sundry Debtors for Un Billed Revenue

23.400 11092.61 8132.91

26.2 Sundry Debtors- Trading Account

28.100 983.83 537.47

26.3 Income accrued and due on Bank Deposits

28.210 6.80 0.09

26.4 Recoverable from GOK

26.4.1 Subsidy receivable from GOK towards BJ/KJ consumers

28.626 830.65 830.97

26.4.2 Amount receivable from State Govt. towards free supply of power to IP Sets upto 10 HP

28.627 18209.77 5538.22

Sub-Total 19040.42 6369.19

26.5 Recoverable from Employees

26.5.1 Amount recoverable from Employees

28.401 64.27 36.95

65


NOTE 26: OTHER CURRENT ASSETS

(Rs. In lakhs)

Sl. No.

Particulars Account

Code As at 31.03.2012 As at 31.03.2011

26.5.2 Amount recoverable from Ex-employees

28.402 - 0.04

26.5.3 Amount recoverable from employees - material related

28.409 26.17 13.33

Sub-Total 90.44 50.32

26.6 Others

26.6.1 Claims for Loss / Damage to Capital Assets

28.749 15.98 19.75

26.6.2 Expenses recoverable from suppliers / contractors

28.810 0.09 0.08

26.6.3 Prepaid Expenses 28.820 2.73 3.31

26.6.4 Receivable from others 28.898 1447.57 1506.00

26.6.5 Amount receivable from P&G Trust

28.907 190.61 452.02

26.6.6 Advances to PCKL towards UI Charges

28.910 258.88 15.52

26.6.7 Advance paid to KPTCL towards transmission charges

28.911 - 358.30

26.6.8 Advance made to M/s. PCKL towards short term power purchase

28.915 329.84 394.47

26.6.9 Advance made to M/s. PCKL towards Non- POC bills

28.916 5.32 -

26.6.10 Regulatory Assets - KERC 28.922 3365.92 7593.00

26.6.11 M/s. Malavalli Power Plant, 41.117 - 19.54

26.6.12 M/s NTPC VVNL 41.198 0.05 -

26.6.13 Flood Relief Fund 46.978 - -0.01

Sub-Total 5616.99 10361.98

TOTAL

36831.09

25451.96

26.4.2 The GOK has released an amount of Rs. 700.00 Lakhs vide GO No. EN22 PSR 2011 dated 31.03.2012 as subsidy towards free power supply to IP sets. The said amount was received by cash on 07.04.2012. But as on 31.03.2012 it has been shown as receivable from GOK.

26.6 Regulatory Asset: In accordance with Hon‟ble KERC Tariff order dated 7th December 2010, MESCOM has created Regulatory Assets to the extent of Rs. 7593.00 lakhs by exhibiting it in Note 26 as Regulatory Asset as on 31.03.2011. Out of the said amount an amount of Rs. 4227.08 Lakhs is recovered from the revenue realizations in FY 2011-12. Balance will be recovered in FY 2012-13.

66


NOTE : 27 REVENUE FROM OPERATIONS

(Rs. In Lakhs)


Code For the Year

2011-12 For the Year

2010-11

27.1 Revenue from Operations

27.1.1 REVENUE FROM SALE OF POWER – LT

27.1.1.1 Bhagya jyothi Scheme. 61.101 831.11 583.10

27.1.1.2 Revenue from sale of power BJ/KJ up to 18 Units

61.402 719.78

640.10

27.1.1.3 Domestic combined lighting, heating and motive power, Private, Professional and unaided educational institutions.

61.110 61.111

35784.88 30448.84

27.1.1.4 Commercial and Non-Industrial Lights and Fans.

61.115 18338.19 15908.25

27.1.1.5 Irrigation Pump Sets (10 HP & below)/ Water Lifting.

61.119 32288.29 22693.53

27.1.1.6 Irrigation Pump sets (above 10 HP)/Water Lifting.

61.120 40.79 32.17

27.1.1.7 Water supply-V.P, T.P and Others

61.125 3845.24 3477.00

27.1.1.8 Private Horticultural Nurseries, Coffee, Tea, Coconut and Areca nut Plantations.

61.121 173.67 129.20

27.1.1.9 Industrial, Non-Industrial, Heating and Motive Power including Lighting

61.129 To

61.133

7121.26 6499.61

27.1.1.10 Public Lighting-V.P, T.P and Others

61.140 2438.41 2062.35

27.1.1.11 Temporary Power Supply - Non-commercial lights and fans and other small appliances.

61.145 2219.60 4093.42

Sub-Total 103801.22 86567.57

27.1.2 Revenue from Sale of Power – HT

27.1.2.1 Public Water Supply & Sewerage Pumping

61.250 3346.80 2952.11

27.1.2.2 Industrial, Non-industrial and Commercial purposes & Railway Traction

61.255 32633.23 28814.26

67


NOTE : 27 REVENUE FROM OPERATIONS

(Rs. In Lakhs)


Code For the Year


2010-11

27.1.2.3 Commercial. 61.256 14218.56 11617.58

27.1.2.4 Irrigation and Agricultural Farms. Lift Irrigation Societies, Lift Irrigation Schemes and Govt., Horticultural Farms.

61.260 189.36 15.18

27.1.2.5 Private Horticultural Nurseries, Coffee and Tea Plantations

61.261 8.24 7.40

27.1.2.6 Residential apartments and colonies availing power supply independently.

61.271 931.90 808.65

Sub-Total 51328.09 44215.18

TOTAL REVENUE FROM OPERATIONS

155129.31 130782.75

27.2 Less: Withdrawal of Revenue Demand

83.830, 83.831, 83.832, 83.833

82.07 756.88

REVENUE FROM OPERATIONS

155047.24 130025.87

27.3 OTHER REVENUE FROM OPERATIONS

27.3.1 Wheeling charges recoveries

61.800 0.01 -

27.3.2 Miscellaneous charges from Consumers.

27.3.2.1 Reconnection Fee (D & R) 61.902 15.62 29.22 27.3.2.2 Service Connection

charges 61.904 545.96 659.24

27.3.2.3 Other Receipts from consumers

61.906 136.89 108.79

27.3.2.4 Amount collected for green tariff

61.907 120.00 -

27.3.2.5 Incentives received 62.918 891.66 597.83

27.3.2.6 Other income relating to purchase of power

62.919 2000.26 1033.67

Sub- Total 3710.39 2428.75

27.4 Regulatory Assets

27.4.1 Income on account of Regulatory Assets

-4227.08 7593.00

NET REVENUE FROM OPERATIONS

154530.56

140047.62

68


27.5 Total Revenue from sale of energy during 2011-12 includes Rs 11092.61 Lakhs in

respect of revenue accrued but pending billing at the year end. The same was

Rs. 8132.91 Lakhs for the previous year 2010-11.

27.6 During the Year the amount to be received from the GOK as subsidy towards free

power supply to IP set consumers having connected load of upto and inclusive of

10 HP and free power supply to BJ/KJ consumers with consumption upto 18 units

on actual basis is Rs. 30803.00 lakhs and Rs.720 lakhs respectively. Out of the

said receivable, an amount of Rs. 26168.00 lakhs and Rs. 720 lakhs has been

released for IP Set and BJ/ KJ installations respectively as per KERC Tariff Order.

The balance amount is accounted as receivable from GOK.

NOTE: 28 OTHER INCOME

(Rs. In Lakhs)


Code For the Year


2010-11

28.1 Interest Income - -

28.1.1 From Consumers

28.1.1.1 Delayed payment charges from consumers

61.905 2373.25 3036.08

28.1.2 From Others

28.1.2.1 Interest on Bank Fixed Deposits 62.222 104.41 53.54

Sub-Total 2477.66 3089.62

28.2 Dividend Income - -

28.3 Net Gain/ Loss on sale of Investments

- -

28.4 Other Non-operating Income

28.4.1 Profit on sale of stores 62.330 120.58 1.55

28.4.2 Sale of scrap 62.340 149.64 108.72

28.4.3 Other Miscellaneous receipts from Trading

62.360 1.25 6.54

28.4.4 Gain on Sale of Assets 62.400 49.28 53.65

Sub-Total 320.75 170.46

28.5 Miscellaneous Receipts

28.5.1 Rental from Staff Quarters 62.901 83.09 51.63

28.5.2 Rental from others 62.902 4.83 5.96

28.5.3 Excess found on physical verification of Materials Stock

62.905 4.64 0.35

28.5.4 Rebate for collection of Electricity Duty

62.916 29.50 25.51

28.5.5 Miscellaneous Recoveries 62.917 978.42 672.83

69


NOTE: 28 OTHER INCOME

(Rs. In Lakhs)


Code For the Year


2010-11

28.5.6 Interest received from Income

Tax Department

62.920 14.31 20.99

28.5.7 Subsidies against Loss on

account of Flood, Fire, Cyclone

etc.,

63.200 - 10.96

Sub-Total 1114.79 788.23

28.6 Income relating to previous

years :

28.6.1 Receipts from Consumers

Relating to Prior periods

65.200 - 1.63

28.6.2 Interest income for prior periods 65.400 2.00 11.22

28.6.3 Excess provision for Interest

and Finance Charges in prior

periods

65.700 - 21.86

28.6.4 Other Excess provision in prior

periods

65.800 98.18 1123.80

28.6.5 Other Income relating to prior

periods

65.900 20.03 751.75

28.6.6 Tariff subsidy relating to prior

period

65.910 12326.00 1852.75

Sub-Total 12446.21 3763.01

TOTAL

16359.41

7811.32

28.1.1.1 Since the arrears in respect of IP set Consumers having connected load upto 10

HP is freezed with effect from 01.08.2008, the Company has not charged interest

on this arrears during the year 2011-12.

28.5.4 As per the Government Order No. EN 06 PSR 2009 Bangalore, Dated

22.02.2010 the rebate payable to the Electricity Distribution Companies for

collection of Electricity Tax from Consumers and its remittance to Govt. is revised

from 1.5% to 0.5% with effect from 01.01.2010.

28.7 Electricity Taxes: Electricity Tax of Rs. 2549.48 lakhs collected from Consumers

has been adjusted against the Tariff Subsidy received/ receivable from Govt. vide

order No. EN 22 PSR 2011/Bangalore dated 31.03.2012.

70


NOTE : 29 PURCHASE OF POWER

(Rs. In Lakhs)


Code For the Year


2010-11

29.1 Purchase of Power

29.1.1 M/s. KPCL 70.108 41215.93 34516.52

29.1.2 M/s. NTPC RSTPS 70.110 14730.83 12457.85

29.1.3 M/s. Madras Automic Power Station

70.111 279.62 228.86

29.1.4 M/s. Neyveli Lignite Corporation Ltd.,

70.112 8642.19 4493.80

29.1.5 M/s NPCIL-Kaiga 70.114 3411.70 2500.19

29.1.6 M/s. Sandur Power Company Ltd.,

70.115 3200.43 2671.04

29.1.7 M/s. Sahyadri Power Company Ltd.,

70.116 33.36 24.25

29.1.8 M/s. Malavalli Power Plant,

70.117 23.34 340.92

29.1.9 M/s. Kalson Power 70.118 389.46 275.99

29.1.10 M/s. Subhash Kabini 70.119 2682.19 1555.94

29.1.11 M/s. Graphite India Ltd., 70.120 181.99 188.92

29.1.12 M/s. Maruthi Power Gen(I) Kabini Pvt. Ltd.,

70.121 238.62 304.13

29.1.13 M/s. Maruthi Power Gen Hemavathi Pvt. Ltd.,

70.122 115.92 209.70

29.1.14 M/s. Moodabagil Power Pvt. Ltd.

70.123 35.02 24.79

29.1.15 M/s. Bhoruka Power Corporation Ltd., (NERIA)

70.124 801.22 824.71

29.1.16 M/s. Mrujara Power Plant 70.126 60.95 56.17

29.1.17 M/s. Rayalseema Alkalies 70.129 874.01 1911.47

29.1.18 M/s. Tata Company Limited

70.131 4872.69 5066.98

29.1.19 M/s. UPCL 70.132 12491.69 3214.12

29.1.20 Wind Mill Projects 70.140 8293.98 4312.02

29.1.21 M/s. Mysore Paper Mills Ltd.,

70.195 146.55 214.17

29.1.22 M/s. Shamili Hydel Power Project

70.202 949.72 843.81

29.1.23 M/s. Sagar Power (Dandela) Pvt. Ltd.,

70.203 553.66 610.94

29.1.24 M/s. Soham Mannapitlu Power Pvt. Ltd.,

70.204 479.98 983.51

71


NOTE : 29 PURCHASE OF POWER

(Rs. In Lakhs)


Code For the Year


2010-11

29.1.25 M/s. Sagar Power (Neerukatte) Pvt. Ltd.,

70.205 702.93 699.41

29.1.26 M/s. AMR Power Pvt. Ltd. 70.206 1563.49 1657.13 29.1.27 KPTCL Transmission

Charges 70.161 13737.34 9836.36

29.1.28 SLDC Charges 70.162 181.67 111.03

29.1.29 PGCIL Transmission Charges

70.163 3004.20 3258.67

29.1.30 Power purchased from PGCIL - NON POC bill

70.213 33.98 -

29.1.31 Power purchased from M/s SRM Power

70.212 13.59 -

29.1.32 Other power purchase cost

70.211 16.15 7.22

Sub-Total 123958.40 93400.61

29.2 High Cost Energy Purchased

29.2.1 UI Charges credits received

70.171 -410.70 -170.16

29.2.2 UI charges 70.172 620.60 936.48 9.2.3 M/s. GMR 70.133 - 5.56

29.2.4 Power purchased from JTPCL

70.125 8002.57 17735.24

29.2.5 Short term power purchased from M/s. NTPC - VVNL

70.198 567.52 2656.63

29.2.6 Short term power purchased from M/s. PTC India Limited

70.199 2357.67 9274.69

29.2.7 Short term power purchased from Indian Energy Exchange

70.200 1016.27 675.77

29.2.8 Power purchases from M/s. LANCO Electric Utility Limited

70.201 405.21 70.92

29.2.9 Power purchased from Non PPA Co-generation Units

70.208 2905.19 964.96

29.2.10 Power purchased during Peak Hours

70.210 2638.75 -

Sub-Total 18103.08 32150.09

29.3 Power Purchase cost withdrawn on the basis of energy balancing

70.209 -14435.88 -15191.00

TOTAL

127625.60

110359.70

72


29.3(a) With effect from 1.4.2011, share of power project capacity allocated to MESCOM has been revised vide GOK notification No. EN 126 EMC 2010 dated 12.10.2011 & 04.01.2012. Power Purchase Cost is being accounted for and paid as per the above share which is readjusted at the end of the year based upon actual drawal of energy for the year.

29.3(b) MESCOM is arranging payment to the power suppliers based on the notional share basis fixed and notified by the Govt. of Karnataka from time to time. Based on the energy balancing report furnished by LDC for the year 2008-09, 2009-10 & 2010-11, the results have been incorporated in the books of the accounts of MESCOM during the year 2010-11 which was again revised in the current year. The difference was accounted along with the provisional Energy Balancing results for the year 2011-12 based on joint reconciliation carried out by all the ESCOMs at LDC.

NOTE : 30 EMPLOYEE COSTS

(Rs. In Lakhs)


Code

For the Year

2011-12

For the Year

2010-11

30.1 Salaries and Wages

30.1.1 Salaries 75.100 7471.58 7489.19

30.1.2 Over Time 75.200 241.30 270.02

30.1.3 Dearness Allowance 75.300 5088.41 4123.85

30.1.4 Other Allowances 75.400 686.00 719.22

30.1.5 Bonus 75.500 154.60 155.24

30.1.6 Medical Expenses

reimbursement

75.611 182.89 157.32

30.1.7 Leave travel assistance 75.612 - 0.06

30.1.8 Earned leave encashment 75.617 812.96 911.66

30.1.9 Earned leave encashment to

retired employees

75.618 321.27 183.88

30.1.10 Payment under Workmen's

Compensation Act

75.629 12.08 2.99

30.1.11 Payment to helpers/employees

of Monsoon gang

75.630 174.31 82.00

30.1.12 Pension & Leave contribution

of employees on deputation

75.8907 11.07 10.77

Sub-Total 15156.47 14106.20

30.2 Contribution to Provident

and Other Funds

30.2.1 Terminal benefits (PF)

Company Contribution

75.8107 111.70 96.36

30.2.2 Terminal benefits (Pension)

Company Contribution

75.8307 2654.04 2402.68

73


NOTE : 30 EMPLOYEE COSTS

(Rs. In Lakhs)


Code

For the Year

2011-12

For the Year

2010-11

30.2.3 Terminal Benefits Company

contribution to Contributory

pension scheme with effect

from 01.04.06

75.8317 352.80 213.92

30.2.4 Terminal Benefits (Gratuity) 75.8407 192.12 121.28

Sub-Total 3310.66 2834.24

30.3 Expenses on ESOP and

ESPP

- -

30.4 Staff Welfare expenses 75.7,

75.860,

75.880

312.31 364.58

TOTAL

18779.44

17305.02

30.5 Employee Benefits:

30.5.1 Short Term Employee Benefits:

30.5.1.1 Short Term Employee Benefits are recognized as an expense amount in the profit and loss account for the year in which related services are rendered.

30.5.2 Post Employment Benefits:

30.5.2.1 The Company makes contribution for Pension and Gratuity to KPTCL/ESCOM‟s Pension and Gratuity Trust. The same becomes a Multi-Employer Defined Benefit Plan. For employees who have joined the Company on or after 1.4.2006, the pension plan is Multi-Employer Defined Contribution Plan.

NOTE : 31 - FINANCIAL COSTS- INTEREST AND OTHER BANK CHARGES (NET)

(Rs. In Lakhs)


Code For the Year


2010-11

31.1 Interest Expenses

31.1.1 Interest on Consumers' Security Deposits

31.1.1.1 Interest on ISD, ASD and MSD 78.6 1694.85 1559.65

31.1.2 Interest on power purchase dues

31.1.2.1 Interest on KPCL dues 80.1 5151.10 4049.03

74



(Rs. In Lakhs)


Code For the Year


2010-11

31.1.3 Interest on Loans

31.1.3.1 Interest on GOK Loans

31.1.3.1.1 Interest on Central Govt. Loan towards Power Sector Automation

78.101 10.91 15.01

31.1.3.1.2 Interest on PMGY Loan account

78.573 13.17 13.91

31.1.3.1.3 Interest on GOK Loan for energization of IP sets under GK Scheme

78.580 6.60 7.92

Sub- Total 30.68 36.84

31.1.3.2 Interest on REC loans

31.1.3.2.1 Interest on Loan from REC 78.540 82.62 107.13

31.1.3.2.2 Interest on APDRP-REC Loan payable to KPTCL

78.572 - 11.87

31.1.3.2.3 Interest on loan drawn by MESCOM from REC – APDRP works

78.591 21.40 21.95

31.1.3.2.4 Interest on loan drawn by MESCOM from REC – General

78.592 65.89 73.27

31.1.3.2.5 Interest on loan drawn by MESCOM from REC – RGGVY Works

78.593 87.58 66.38

Sub-Total 257.49 280.60

31.1.3.3 Interest on PFC loans

31.1.3.3.1 Interest on loan drawn from PFC for implementation of RAPDRP works

78.594 41.63 41.63

31.1.3.4 Interest on Loan from Commercial Banks

78.560 4938.00 3581.46

Total Interest on Loans

5267.80 3940.53

31.2 Other Borrowing Costs

31.2.1 Other Interest and Finance Charges

78.8 28.63 41.33

31.3 Applicable Net gain or loss on Foreign Currency Transactions

- -

31.4 Other Interest Charges

31.4.1 Interest on Income Tax 78.510 - -

Gross Finance Costs 12142.38 9590.54

75



(Rs. In Lakhs)


Code For the Year


2010-11

31.5 Less : Interest and finance charges capitalised

31.5.1 Capitalisation of interest on funds used during construction

78.900 224.83 211.36

Total Finance Costs

11917.55

9379.18

31.6 Interest accrued but not due for the financial year 2011-12 in respect of long-term borrowing assigned by KPTCL to the extent of Rs 2.29 lakhs has been provided for as per KPTCL letter No. FA (A & R)/KCO 24/33470/2011-12 dated 28.04.2012.

NOTE :32 DEPRECIATION AND AMORTIZATION EXPENSES (NET)

(Rs. In Lakhs)

Sl. No.

Particulars Account

Code For the Year


2010-11

32.1 Depreciation on Fixed Assets

32.1.1 Depreciation on Lease hold Assets

77.110 0.37 0.37

32.1.2 Depreciation on Buildings 77.120 72.62 64.71

32.1.3 Depreciation on Hydraulic Works 77.130 9.40 9.12

32.1.4 Depreciation on Civil Works 77.140 1.14 0.90

32.1.5 Depreciation on Plant and Machinery

77.150 1015.29 854.06

32.1.6 Depreciation on lines, cable, network etc.,

77.160 4756.26 4153.83

32.1.7 Depreciation on Vehicles 77.170 5.07 2.18

32.1.8 Depreciation on furniture, fixtures 77.180 11.52 10.05

32.1.9 Depreciation on Office equipments

77.190 2.59 3.76

Total 5874.26 5098.98

32.1.10 Add : Depreciation under provided in previous years.

83.600 292.35 31.57

32.1.11 Less : Excess provision for Depreciation in prior periods

65.600 49.96 51.19

Depreciation on Fixed Assets 6116.65 5079.36

32.2 Depreciation on Released Assets

32.2.1 Depreciation on Released Good Asset- Plant and Machinery

77.151 12.73 12.82

32.2.2 Depreciation on Released Good Asset - lines. Cable, network etc

77.161 1.59 1.44

Sub-Total 14.32 14.26

Depreciation (Net)

6130.97

5093.62

76


NOTE : 33 OTHER EXPENSES

(Rs. In Lakhs)


Code For the Year


2010-11

33.1 Repairs

33.1.1 Buildings 74.200 29.69 48.29

33.1.2 Plant and Machinery 74.100 511.64 528.38

33.1.3 Lines, Cable Net Work Etc. 74.500 741.01 753.70

33.1.4 Civil Works 74.3 21.04 7.06

33.1.5 Vehicles 74.6 20.29 18.54

33.1.6 Furniture and Fixtures 74.7 0.66 1.12

33.1.7 Office Equipments. 74.8 11.66 9.62

Sub-Total - Repairs 1335.99 1366.71

33.2 Power and Fuel

33.2.1 Electricity Charges 76.158 102.64 86.92

33.2.2 Fuel expenses for generators 76.161 0.99 0.23

Sub- Total 103.63 87.15

33.3 Rent

33.3.1 Rent (including lease rentals) 76.101 138.46 133.86

Sub- Total 138.46 133.86

33.4 Insurance

33.4.1 Insurance on Fixed assets - -

33.5 Rates and Taxes excluding Taxes on Income

76.102 18.61 7.76

33.6 Miscellaneous Expenses

33.6.1 Payment to Auditors

33.6.1.1 Payment to statutory Auditors 76.122

33.6.1.1.1 As Auditor ( Rs 110000 + Service Tax ) = 123596/

1.24 1.33

33.6.1.1.2 Taxation Matter ( Rs 40000 + Service Tax ) = 44944/

0.45 0.45

33.6.1.1.3 Reimbursement of Expenses 76.133 0.16 0.17

33.6.1.2 Payment to Cost Auditors

33.6.1.2.1 As Auditor ( Rs 50000 + Service Tax ) = 56180/

76.122 0.56 0.55

33.6.1.2.2 Taxation Matter - -

33.6.1.2.3 Reimbursement of Expenses - -

Sub- Total Payment to Auditors

2.41 2.50

77



(Rs. In Lakhs)


Code For the Year


2010-11

33.7 Other A&G Expenses

33.7.1 Pagers cellular phones E-mail & other communication charges

76.111 1.83 2.42

33.7.2 Telephone, Trunk call, Telegrams and Telex Charges

76.112 65.21 51.65

33.7.3 Mobile Phone Charges 76.114 37.27 32.61

33.7.4 Postage 76.113 18.11 14.97

33.7.5 Revenue Receipts Stamps 76.115 0.01 -

33.7.6 Legal Charges 76.121 19.81 12.32

33.7.7 Consultancy charges 76.123 3.18 11.98

33.7.8 Other Professional charges 76.125 0.28 0.30

33.7.9 Remuneration to Contract Agencies for opening & maintenance of ledger Accounts

76.126 480.33 537.58

33.7.10 Remuneration Private Contractor engaged for shift and minor maintenance duties of stations/MUSS

76.127 66.21 63.66

33.7.11 Remuneration paid Chartered Accountants for auditing cash & Revenue Accounts

76.128 6.83 6.92

33.7.12 Remuneration paid Contract Agencies/ Services obtained

76.129 949.93 871.55

33.7.13 Remuneration paid to Grama Vidhyuth Prathinidhis

76.130 85.29 45.42

33.7.14 Conveyance expenses 76.131 0.24 0.41

33.7.15 Travelling expenses 76.132 1.35 2.28

33.7.16 Travelling allowance to employees

76.133 283.95 303.88

33.7.17 Travelling Allowance to Contract Employees

76.134 0.12 0.45

33.7.18 Vehicle hiring expenses for vehicles hired to stations

76.135 127.77 112.79

33.7.19 Vehicle running expenses other than store vehicles

76.136 88.56 81.33

33.7.20 Vehicle hiring expenses 76.137 199.13 172.86

33.7.21 Vehicle License, Registration fee and Taxes

76.138 9.23 13.23

78



(Rs. In Lakhs)


Code For the Year


2010-11

33.7.22 Shared expenses of MESCOM with KPTCL

76.140 0.50 5.53

33.7.23 Shared expenses of MESCOM with PCKL

76.141 30.23 18.96

33.7.24 Fees & Subscriptions 76.151 88.04 35.48

33.7.25 Books, periodicals and diaries 76.152 1.30 1.17

33.7.26 Printing & Stationery 76.153 57.63 60.77

33.7.27 Factory License Fees 76.154 10.00 10.00

33.7.28 Advertisement Expenses 76.155 39.24 37.49

33.7.29 Computer stationery and floppies 76.156 4.34 4.09

33.7.30 Contributions 76.157 13.00 7.98

33.7.31 Statutory payments as per Company Act, 1956

76.159 2.04 93.27

33.7.32 Water Charges 76.160 3.69 5.04

33.7.33 Entertainment 76.162 0.09 0.05

33.7.33 Secret service grant 76.164 0.60 0.60

33.7.35 Miscellaneous expenses 76.190 65.16 73.50

33.7.36 Consumer Relation/ Education 76.196 6.97 -

33.7.37 Material related expenses 76.2 43.47 33.74

Sub- Total 2810.94 2726.28

Sub - Total A&G Expenses 3074.06 2957.55

33.8 Other Debits

33.8.1 Asset Decommissioning Costs 77.500 7.11 8.26

33.8.2 Small & Low value items Written off

77.610 7.19 7.08

33.8.3 Losses relating to Fixed Assets 77.700 60.71 61.94

33.8.4 Bad & Doubtful Debts Written off / provided for

79.4 239.62 78.98

33.8.5 Miscellaneous losses and Write offs

79.5 43.03 70.42

Sub Total 357.66 226.68

33.9 Prior Period Expenses / losses :

33.9.1 Short provision for power purchased in previous years

83.100 - -

33.9.2 Operating Expenses of previous years

83.300 1.97 142.61

79



(Rs. In Lakhs)


Code For the Year


2010-11

33.9.3 Employee costs relating to

previous years

83.500 29.28 193.40

33.9.4 Interest and other Finance

charges relating to previous

years

83.700 0.18 7.03

33.9.5 Short Provision for Income tax -

previous years

83.810 - 27.90

33.9.6 Administrative Expenses -

previous years.

83.820 0.50 12.80

33.9.7 Materials related expenses -

previous years.

83.840 - 4.09

33.9.8 Other Expenses relating to prior

periods

83.850 18.26 69.20

33.9.9 Prior Period Expenses relating to

purchase of power

83.860 762.61 481.43

Sub-Total 812.80 938.46

TOTAL

5580.50

5489.40

34 Disclosures required by Accounting Standards:

34.2 Segment Reporting:

34.2.1 Business Segment:

34.2.1.1 Electricity distribution is the principal business activity of the Company. There are no other activities which form a reportable segment as per the Accounting Standard – 17 „Segment Reporting.

34.2.2 Secondary Segment:

34.2.2.1 The operations of the Company are mainly carried out within the four revenue districts of Karnataka State namely, Dakshina Kannada, Udupi, Chickmagalur and Shimoga. Therefore geographical segments are not applicable.

34.3 Disclosure of transactions with Related Parties as required by the Accounting Standard – 18

34.3.1 In view of the paragraph 9 of AS 18, no disclosure is required as regards related party relationships with other state-controlled enterprises and transactions with such enterprises. Other disclosures as required under AS 18 are as given below:

80


34.3.2 Managerial Remuneration paid / payable for the financial year 2011-12 to the

directors are as follows:

Rs. in Lakhs

Particulars

Current Year

2011-12

Previous Year

2010-11

WHOLE TIME DIRECTORS

Salary and Allowances 24.84 16.45

Ex-gratia 0.06 0.06

Medical Expenses 0.01 0.86

Travelling Expenses 1.85 2.68

PART TIME DIRECTORS

Travelling Expenses 0.17 0.54

Sitting Fees 0.19 0.20

TOTAL 27.12 20.79

34.4 Earnings Per Share

Particulars 2011-12 2010-11

Profit after tax as per Accounts (For Basic and

Diluted Earnings Per Share) – (A) (Rs. in Lakhs) 641.19 170.10

Weighted Average number of shares outstanding

during the year for Basic and Diluted EPS – (B) 159110750 157339931

Basic and Diluted Earnings per Share (A/B) (in Rs.) 0.40 0.12

34.5 Taxation:

34.5.1 Current Taxation:

34.5.1.1 The provision for Minimum Alternate Tax (MAT) under Section 115 JB of Income Tax Act 1961 has been created in the Accounts.

34.5.2 Deferred Taxation:

34.5.2.1 The Company has not recognized Deferred Tax Asset / Deferred Tax Liabilities since there is no such requirement under ESAAR, 1985.

34.6 Estimated amount of capital works remaining to be executed as on 31.03.2012 in respect of Projects amounts to Rs. 11450.12 Lakhs.

81


34.7 The details of amount outstanding to Small and Medium Enterprises based on available information with the Company is as under:

Rs. in Lakhs

Particulars As at 31st

March 2012 As at 31st

March 2011

Principal amount due and remaining unpaid - -

Interest due on above and the unpaid interest - -

Interest paid - -

Payment made beyond the appointed day during the year

- -

Interest due and payable for the period of the delay

- -

interest accrued and remaining unpaid - -

Amount of further interest remaining due and payable in succeeding Years

- -

35 Others:

35.1 The details of energy purchase, sale of energy and distribution losses during the year 2011-12 are as follows:

Particulars Units For the year

2011-12 For the year

2010-11

Energy at MESCOM‟s interface point

Mus 4154.38* 3600.09

Total Sales Mus 3652.17** 3170.90

Distribution Loss Mus 502.21 429.19

Distribution Loss % 12.09 11.92

(*)includes wheeled energy of 81.96 Mus; (**) includes wheeled energy of

81.96 Mus & Un billed energy of 47.63 Mus

Increase in the Distribution loss for FY 2011-12 compared to FY 2010-11 is

because of change in the method of computation of T&D Loss. For FY 2011-12

the T&D Loss is being calculated considering the sales of same month DCB

whereas, earlier to this, sales of next month DCB were considered. The

distribution loss for FY 2010-11 in the changed method would be 12.99%. The

open access consumption of M/s. VISL Bhadravathi is increased from 6.34 MU

in FY 11 to 63.21 MU in FY 12. The increase of 220 MW of connected load is

not matched with the similar addition of new sub-stations.

82


35.2 Considering the financial implications involved, insurance of fixed assets or

current assets is not done as it is not economical.

35.3 Transferring the name in the title deeds of properties transferred from KPTCL

is under progress.

36 Contingent Liabilities:

36.1 The Company was subjected to EPF Inspection during the year 2006-07 and

thereby a demand of Rs 4.44 Crores was raised on the Company towards the

dues for EPF of Contract Employees. The Company has disputed the same in

view of the error in calculation of demand and also with regard to applicability

of the regulations to contractors‟ employees. A deposit of Rs 1.77 Crores has

already been made with the EPF department and the case has been remitted

to PF Office Mangalore for hearing once again. The Company is hopeful of a

positive outcome on the said issue. No provision has been made in the

accounts for the disputed demand.

36.2 The appeal No. ITA/1118/Bang/09 AY 2006-07 preferred by MESCOM against

the order CIT(A) Mangalore in respect of disallowance of 80 IA claim of

MESCOM relating to AY 2006-07 is pending before Hon‟ble ITAT Bangalore.

The Hon‟ble ITAT has taken up the issue for hearing in FY 12. The demand

raised in respect of above issue on the disallowance of appeal of CIT(A) was

paid. However the AO has reopened the assessment under section 148 and

made additional demand of Rs. 1,92,33,759/- . Out of this an amount of Rs.

96,16,880/- was paid on 08.05.2012 and stay is subsisting for the remaining

50% of the demand.

The company is hopeful of a positive outcome on the Appeal.

36.3 The Commissioner of Central Excise and Service tax, Mangalore has passed

two orders bearing No. C.No. IV/09/114/2010 Hqrs. Adjn 1/2295 on

28.01.2011 and order No. IV/09/114/2010/Hqrs Adj(1)/17109 dated 26.10/2010

for Rs. 6,37,250/- and for Rs. 85,53,406/- which includes service tax of

Rs. 3,18,625/- and Rs. 42,76,703/- respectively and penalty of Rs. 3,18,625/-

u/s. 76 and penalty of Rs. 42,76,703/- u/s. 78 respectively excluding penalty

u/s. 77 and rule 7(c). Further interest amount u/s. 75 has not been quantified.

These orders have been passed in respect of service tax on Goods transport

Agency Service since 2005 being not paid to the Department. The Company

has got stay against the demand raised by the department from CESTAT

Bangalore.

36.4 The table given below indicates the number of pending cases before various

authorities and courts as on 31.03.2012and corresponding amount involved

in it.

83


Particulars No. of pending

cases Amount involved in

lakh Rupees

Revenue 36 313.18

Labour 41 15.72

Miscellaneous 214 206.80

Total 291 535.70

There may be contingent liability for the said amount if the cases are not

decided in favour of MESCOM.

36.5 M/s. UPCL, a major IPP with an installed capacity of one unit of 600 MW was

Commissioned on 11.11.2010. The generator is claiming tariff at GoK

approved tariff of Rs. 3.127/Kwh, on the total energy including Auxiliary

consumption and deemed generation (D.G), whereas, MESCOM is admitting

bills for the energy exported-import energy at 8.33% of Karnataka Share of

90% as per clause 2(b) of PPA dated 26.12.2005 at the tariff rate of

3.127/Kwh. The Deemed Generation charges are admitted limiting the

charges to capacity charges only. As the energy generated by M/s. UPCL is

supplied not only to Karnataka but also to other State/s as such the tariff has to

be determined by CERC. M/s UPCL has filed the tariff petition on 14.12.2011

before CERC and the same is pending for disposal.

36.6 KPTCL had raised a demand at 26.23 paise per unit for the transmission of

electricity for the year 2006-07 against which the company has admitted the

bills at 19.42 paise per unit as per KERC order. However, KPTCL has

appealed against the order of KERC with Appellate Tribunal for Electricity,

New Delhi. The ATE has passed an order requiring KERC to carry out certain

modification in its transmission tariff. The KERC preferred an appeal against

the order of ATE at Hon‟ble Supreme Court, New Delhi. The appeal is pending

for disposal before the Hon‟ble Supreme Court. MESCOM may contingently

be liable for an amount of Rs. 19.74 Crs. if orders are passed in favour of

KPTCL.

37 In accordance with the provisions of Section 185 (2)(d) of the Electricity Act,

2003, all rules made under sub-section (1) of section 69 of the repealed

Electricity (Supply) Act, 1948 shall continue to have effect until such rules are

rescinded or modified. Accordingly, the accounting system is based on the

rules laid down under the Electricity (Supply) Act, 1948, since the modified

rules have not yet been notified under the Electricity Act, 2003.

38 The Balances in respect of Sundry Debtors, Sundry Creditors, Loans,

Advances to Supplies and other borrowings are subject to confirmation and

other reconciliation if any.

39 Balance with KPTCL and Other ESCOM‟s are subject to confirmation and

reconciliation.

84


40 The previous figures have been regrouped/ reclassified, wherever necessary

to conform to the current year presentation.

41 The companies Accounts that are approved by the Board on 24.07.2012 have

been revised in the light of observations made by the Comptroller and Auditor

General of India. The said revision has resulted in decrease in share capital

by Rs. 0.03 lakhs, increase in share deposit by Rs. 0.03 lakhs, increase in

reserves & surplus by Rs. 100.54 lakhs, increase in long term liabilities by

Rs. 4.18 lakhs, decrease in short term liabilities by Rs. 4.18 lakhs, decrease in

trade payables by Rs. 36.17 lakhs, decrease in other current liabilities by

Rs. 468.03 lakhs, tangible assets have been increased by Rs. 74.14 lakhs,

other non current assets decreased by Rs. 25.15 lakhs, trade receivables

decreased by Rs. 23.05 lakhs, other current assets decreased by Rs. 429.60

lakhs and total assets and liabilities are decreased by Rs. 403.66 lakhs.

Sd/-

(K. JAYARAMA ALVA) Financial Advisor

Sd/- (H. NAGESH)

Director (Tech) In terms of our Report of even date

for GANESH & SUDHIR


Managing Director





85


Statement showing sector wise capital expenditure for the year 2011-12

(Rs. In Lakhs)

Sl. No.

Particulars Account

code Budget

Allocation

Cost during

the year

Released Assets

issued to capital works

Net Capital Expendi

ture 1 System Augmentation &

Strengthening

a DTC Metering 14.152 4500.00 80.36 0.00 80.36 b Replacement of Electro- Mechanical

Meters by Static Meters 14.153 1000.00 211.14 2.29 208.85

c Auto-recloser & Sectionliser 14.156 23.40 23.40 d RLMS Works 14.157 550.52 20.13 -0.61 20.74 e Link lines, Re-conductering of HT,LT &

33 KV lines 14.167 5000.00 830.56 4.87 825.69

f Installation of Additional Transformers 14.168 1120.64 26.69 1093.95 g Universal Metering 14.351,

14.361

14.401

13.50 0.00 13.50

h Improvement- Others 14.150,

14.160

1000.00 1399.81 29.57 1370.24

i Tackling of High Loss High consumption Feeders & HVDS

14.169 3500.00 1146.90 22.99 1123.91

Sub-Total 15550.52 4846.44 85.80 4760.64 2 APDRP Works 14.143 0.00 3 R- APDRP Works 14.144 2300.00 41.63 0.00 41.63 4 Replacement of faulty distribution

transformers by similar capacities 14.170 1500.00 1484.10 1095.07 389.03

Replacement of faulty distribution transformers by higher capacities

14.171 34.56 16.85 17.71

5 Service Connection including promotor vanished layout works

a Service Connection 14.400 1500.00 1424.35 39.19 1385.16 b Promotor vanished layout works 14.142 83.31 1.91 81.40 Sub Total (a+b) 1500.00 1507.66 41.10 1466.56 6 Rural Electrication (General) a RGGVY 14.210 2500.00 1962.65 1962.65 b Electrification of Hamlets / Janatha

Colonies 14.302,

14.300

1500.00 380.12 1.00 379.12

c Energisation of IP sets (incl. providing infrastructure for regularization of un-authorised IP sets)

14.320,

14.326,

14.220

5000.00 526.45 21.44 505.01

d CWIP - Regularisation of unauthorised IP sets on or before 31.7.11

14.324 206.12 2.79 203.33

e Kutir Jyothi 14.350,

14.360

50.00 5.13 0.02 5.11

Sub Total (a+b+c+d+e) 9050.00 3080.47 25.25 3055.22 7 Tribal Sub-Plan a Electrification of Tribal Colonies /

Janatha Colonies 14.340,

14.341

66.70 74.35 0.53 73.82

b Energisation of IP sets 14.328 105.00 4.88 0.05 4.83 c Kutir Jyothi 14.362 7.78 0.24 0.13 0.11 Sub Total (a+b+c) 179.48 79.47 0.71 78.76 8 Special Component Plan a Electrification of S.C. Colonies / Janatha

Colonies 14.342 105.00 105.59 0.00 105.59

b Energisation of IP sets 14.329 150.00 5.55 0.17 5.38 c Kutir Jyothi 14.363 20.00 1.16 0.39 0.77 Sub Total (a+b+c) 275.00 112.30 0.56 111.74 9 Tools & Plants & Computers 14.600,

14.700

14.800

200.00 178.71 0.00 178.71

10 Civil Engineering Works 14.502 800.00 283.49 0.00 283.49 11 Construction of new sub stations & lines

(33KV) 14.110,

14.120

3500.00 1091.01 28.51 1062.50

GRAND TOTAL 34855.00 12739.84 1293.85 11445.99

86


STATEMENT SHOWING CAPITAL WORKS IN PROGRESS FOR THE YEAR 2011-12

(Rs.in Lakhs)

Account

Code Description

O.B. as on

01.04.2011 Incurred

Cate

gorised

C.B. as on

31.03.2012

14.110 CWIP - Transmission lines (G.P) 1989.72 112.07 2101.77 0.02

14.120 CWIP - Step Down Stations (GP) 250.35 946.29 713.02 483.62

14.126 CWIP - Step Down Stations - non plan 2.55 32.69 35.17 0.07

14.140 CWIP - Transmission Lines,

Transformer etc. - Extension (GP) 0.05 0.00 0.05 0.00

14.142 CWIP - Promoter vanished layouts -

11KV lines, Transformers, LT lines/ S.C

etc., (G.P)

9.33 103.72 100.94 12.11

14.143 CWIP - 11KV & below Distribution

works under APDP works 0.02 -0.02 0.00 0.00

14.144 CWIP - 11KV & below Distribution

works under RAPDRP works 41.62 41.63 2.97 80.28

14.150 CWIP - Transmission lines -

Transformers etc., Improvements (GP) 982.28 937.28 1347.99 571.57

14.152 CWIP-Improvements - DTC Metering 1.38 80.36 81.64 0.10

14.153 CWIP-Improvements - replacement of

electro mechanical meters by static

meters

143.13 211.20 262.85 91.48

14.156 CWIP- improvements - Auto -

reclosures & sectionalizers 0.00 22.32 16.83 5.49

14.157 CWIP- improvements - RLMS Workers 65.86 41.96 78.31 29.51

14.160 CWIP - Reduction of Losses in lines 684.75 652.11 997.72 339.14

14.167 CWIP- improvements - linklines &

reconductering of HT, LT& 33kv line 523.66 834.02 952.51 405.17

14.168 CWIP- installation of additional

transformers 301.85 1136.23 1030.97 407.11

14.169 CWIP- tracking of high loss high

consumption feeders & HVDS 259.89 1141.25 1032.99 368.15

14.170 CWIP - Replacement of distribution

Transformers by similar capacities 127.71 1480.55 1471.03 137.23

14.171 CWIP - Replacement of Transformers

by higher capacities 3.93 34.56 32.42 6.07

14.200 CWIP - REC Plan Schemes 0.16 16.84 16.97 0.03

14.210 CWIP - RGGVY 68.43 1412.92 1389.33 92.02

14.220 CWIP - SPA Schemes 5.75 2.43 -0.13 8.31

14.300 CWIP - Village Electrofication (G.P) 95.07 47.02 98.97 43.12

14.302 CWIP - Electrification of Hamles and

Tandas (G.P) 139.93 324.95 266.85 198.03

14.320 CWIP - Power Supply to IP sets (G.P) 443.17 547.12 770.23 220.06

14.324 CWIP - Regularisation of unauthorised

IP sets on or before 31.7.11 0.00 206.11 79.32 126.79

14.325 CWIP - Power Supply to IP sets under

O.Y.T Scheme 0.21 0.00 0.21

14.326 CWIP - Regularisation of unauthorised

IP sets under O.Y.T Scheme 0.28 0.00 0.28

14.328 CWIP - Energization of IP sets under

Tribal Sub-Plan 1.04 4.46 5.51 -0.01

14.329 CWIP - Energization of IP sets under

Special Component Plan 1.81 5.53 3.75 3.59

14.340 CWIP - Tribal Area Electrification (G.P) 70.86 9.65 58.12 22.39

87


STATEMENT SHOWING CAPITAL WORKS IN PROGRESS FOR THE YEAR 2011-12

(Rs.in Lakhs)

Account

Code Description

O.B. as on

01.04.2011 Incurred

Cate

gorised

C.B. as on

31.03.2012

14.341 CWIP electrification of tribal colonies

under Tribal sub-plan 27.04 56.96 42.84 41.16

14.342 CWIP electrification of SC colonies

under Special Component plan 14.35 76.89 48.66 42.58

14.350 CWIP - Bhagya Jyothi Schemes 16.36 0.59 -0.05 17.00

14.360 CWIP - Kuteera Jyothi Schemes 0.00 4.32 3.03 1.29

14.362 CWIP - Metering of existing K.J

Installation under TSP 0.00 0.24 0.15 0.09

14.363 CWIP - Metering of existing K.J

Installation under SCP 0.00 0.55 0.31 0.24

14.400 CWIP - Service Connections 577.03 1437.28 1370.09 644.22

14.401 CWIP - Metering of I.P sets pf 10 HP

and below 0.00 0.03 0.00 0.03

14.502 CWIP - Buildings 116.55 294.47 300.66 110.36

14.607 CWIP - Vehicles 0.00 12.55 12.55 0.00

14.708 CWIP - Furniture and Fixtures 0.89 10.29 10.85 0.33

14.809 CWIP - Office equipment 1.71 35.13 28.95 7.89

14.810 CWIP - Tools and Tackles 31.78 119.75 103.58 47.95

14.811 CWIP - Mobile Phones 0.12 0.98 1.02 0.08

14.902 CWIP - expenditure categorised-APDP

11kv distribution works 0.00 0.00 0.00 0.00

14.911 CWIP - Provision for ongoing works 2309.58 304.57 0.00 2614.15

TOTAL 9310.20 12739.85 14870.74 7179.31

,,

STATEMENT OF MATERIAL STOCK ACCOUNT

(Rs. in lakhs)

Sl. No.

Account Head

Particulars

As on 31.03.2012

As on 31.03.2011

A Opening Stock 1485.10 1436.37

B R E C E I P T S

1 Material Purchases 10085.82 7564.00

2 Material inward - Others 3191.31 1850.00

TOTAL RECEIPTS 13277.13 9414.00

C OPENING STOCK + RECEIPTS 14762.23 10850.37

D I S S U E S

1 Material issued capital 7363.04 6604.84

2 Material issues (O&M) 1163.35 1009.57

3 Material Outward - Others 3187.39 1750.86

TOTAL ISSUES 11713.78 9365.27

E CLOSING BALANCE OF STOCK (C-D) 3048.45 1485.10

88


Statement showing the details of source-wise power purchase cost

Sl. No.

Particulars

2011-12 2010-11

Energy (Mus)

Cost (Rs. in Crs.)

Energy (Mus)

Cost (Rs. in Crs.)

1 Hydel Power 1457.55 68.92 1146.30 90.50

2 Thermal Power 1656.46 490.55 1461.05 379.24

3 Lignite Power 231.77 86.42 226.06 44.94

4 Atomic Power 124.66 36.91 93.05 27.29

5 Conventional Energy 305.75 182.38 197.33 101.93

6 Non Conventional Energy 369.41 121.72 361.53 114.86

7 Wind Mill energy 235.67 82.94 126.45 43.12

8 UI Charges 10.84 2.10 53.77 7.66

9 High Cost Energy 336.30 178.93 631.85 313.84

10 Transmission charges - 167.42 - 130.95

11 Energy Balancing Adjustments -516.78 -144.36 -531.79 -151.91

12 Other Charges (Trading margin charges, open access charges, SLDC charges, PCKL charges)

6.29 2.32 - 1.18

Total 4217.92 1276.25 3765.60 1103.60

COST OF POWER AT DIFFERENT POINTS

Sl.

No. Particulars

2011-12 2010-11

Energy

(MU)

Amount

(Rs. In Crs)

Rate per

unit (in

Rs.)

Energy

(MU)

Amount

(Rs. In

Crs)

Rate per

unit

(in Rs.)

1 At Generation Point 4217.92 1276.25 3.03 3765.60 1103.60 2.93

2 At Interface Point 4072.42 1276.25 3.13 3600.09 1103.60 3.07

3 At Consumer Point 3570.21 1276.25 3.57 3170.90 1103.60 3.48

4 Delivered cost of power to

consumer (Excluding

ROE)

3570.21 1702.49 4.77 3170.90 1476.89 4.66

89


Collection Efficiency as per DCB

Category

Collection Efficiency (in %)

2010-11 2011-12

LT 1 70.26 63.07

LT 2 99.48 98.40

LT 3 100.28 99.04

LT 4 110.29 91.90

LT 5 99.92 99.67

LT 6 69.69 59.95

LT 7 110.30 104.27

HT 97.99 94.16

Misc. 100.00 100.00

Total 99.54 93.62

Metered and Un-metered Energy:

Category

Category Energy Sales in M.U

2010-11 2011-12

Metered Un-

metered Total

% of

Energy

Sales

Metered Un-

metered Total

% of

Energy

Sales

LT 1 34.74 5.250 39.99 1.26 41.38

41.38 1.16

LT 2 935.11

935.11 29.49 1009.03

1009.03 28.26

LT 3 238.07

238.07 7.51 259.75

259.75 7.28

LT 4 573.44 210.280 783.72 24.72 1066.85

1066.85 29.88

LT 5 132.11

132.11 4.17 135.47

135.47 3.79

LT 6 130.25

130.25 4.11 142.05

142.05 3.98

LT 7 41.24

41.24 1.30 20.15

20.15 0.57

HT 870.40

870.40 27.45 895.53

895.53 25.08

Total 2955.374 215.530 3170.90 100.00 3570.21 0.00 3570.21 100

0

20

40

60

80

100

120

Pe

rce

nta

ge

Category

Collection Efficiency: FY 12

2010-11

2011-12

90


Consumer Profile

Category

Consumer Base

2010-11 2011-12

Installa tions in

nos. %

Installa tions in

nos. %

2010-11 2011-12

LT 1 166350 9.49 180560 9.83

LT 2 1175676 67.10 1221097 66.48

LT 3 154299 8.81 159818 8.70

LT 4 204603 11.68 220728 12.02

LT 5 20071 1.15 21310 1.16

LT 6 22477 1.28 23206 1.26

LT 7 7546 0.43 8964 0.49

HT 1113 0.06 1225 0.07

Total 1752135 100.00 1836908 100.00

Revenue Demand

Category

Revenue Demand as per DCB

2010-11 2011-12

Rs. in Lakhs

% Rs. in Lakhs

%

LT 1 1470.12 1.06 1844.26 1.11

LT 2 31968.41 23.02 37742.08 22.82

LT 3 16640.69 11.98 19298.92 11.67

LT 4 24420.36 17.58 33940.48 20.52

LT 5 6804.54 4.90 7502.35 4.54

LT 6 6938.79 5.00 8073.12 4.88

LT 7 4278.12 3.08 2326.96 1.41

HT 45797.16 32.97 54213.57 32.77

Misc. 582.26 0.42 469.66 0.28

Total 138900.45 100.00 165411.40 100.00

0

200000

400000

600000

800000

1000000

1200000

1400000

No

. o

f In

sta

llati

on

s

Category

Consumer Base: FY 12

2010-11

2011-12

0

10000

20000

30000

40000

50000

60000

Ru

pe

es in

La

kh

s

Category

Revenue Demand: FY 12

2010-11

2011-12

91


Revenue Collection

Cate gory

Revenue Collection as per DCB

2010-11 2011-12

Rs. in Lakhs

% Rs. in Lakhs

%

2010-11 2011-12

LT 1 1032.96 0.75 1163.25 0.75

LT 2 31801.63 23.00 37137.69 23.98

LT 3 16687.08 12.07 19113.44 12.34

LT 4 26933.91 19.48 31190.03 20.14

LT 5 6799.12 4.92 7477.39 4.83

LT 6 4835.58 3.50 4840.08 3.13

LT 7 4718.67 3.41 2426.28 1.57

HT 44874.95 32.46 51047.86 32.96

Misc. 582.26 0.42 469.66 0.30

Total 138266.16 100.00 154865.68 100.00

Closing Balance

Cate gory

Closing Balance as per DCB

2010-11 2011-12

Rs. in Lakhs

% Rs. in Lakhs

%

LT 1 1868.32 5.65 2549.34 5.84

LT 2 1881.33 5.68 2485.72 5.70

LT 3 367.95 1.11 553.43 1.27

LT 4 15698.79 47.44 18449.24 42.28

LT 5 234.83 0.71 259.79 0.60

LT 6 12125.70 36.64 15358.74 35.20

LT 7 -1175.14 -3.55 -1274.46 -2.92

HT 2091.34 6.32 5257.05 12.05

Misc. 0.00 0.00 0.00 0.00

Total 33093.13 100.00 43638.85 100.00

-5000

0

5000

10000

15000

20000

Ru

pe

es in

La

kh

s

Category

Closing Balance: FY 12

2010-11

2011-12

0

10000

20000

30000

40000

50000

60000

Ru

pees i

n L

akh

s

Category

Revenue Collection: FY 12

2010-11

2011-12

92


Average Realization Rate From Sale of Power 2011-12

Account Head - LT Category Tariff

Account Code

No. of Consum

ers

Units Sold Average

Realization Rate per Unit (Ps.)

Opening balance as on

01.04.11

Revenue Demand as per

DCB (in lakhs)

Net provision for

unbilled revenue (in

lakhs)

Provision for withdrawal of revenue (in lakhs)


Accounts (in lakhs)

Collection for the year 11-12 (in

lakhs)

Closing Balance (in lakhs)

Demand Series

Closing Balance Series

Units (MU)

% of Units Sold

BJ / KJ - Tariff subsidy LT - 1 61.402 28.626 122911 16.348 0.46 440.29 0.00 719.78 0.00 0.00 719.78 719.78 0.00 BJ / KJ LT - 1 61.101 23.101 57649 25.030 0.70 332.05 1278.84 817.68 13.43 0.00 831.11 308.20 1801.75 Dom. Ltg., Non-Dom, Non-Com Ltg and Govt. Hospital Ltd., Dom. Combined Ltg. (AEH), Non-Dom., Non-Coml. Comb. Ltg. & htg. Motive Power, & Govt. Hospitals for handicapped Orphans, aged & destitute & Pvt. Professional & other Pvt. Edu. Instns.

LT - 2a&b

61.110, 61.111

23.110, 23.111

1221097 995.980 27.90 359.29 2878.49 35460.59 322.85 -1.44 35784.88 35191.47 3471.90

Comml. Ltg. Heating & motive power

LT - 3 61.115 23.115 159818 259.750 7.28 705.99 876.73 18208.86 129.41 0.07 18338.20 18122.94 1091.99

Irrigation pumpsets, Lift Irrigation Schemes / Socities (upto & inclusive of 10 HP)

LT - 4a 61.119 23.119, 218349 1058.930 29.66 304.91 10275.13 37052.37 -4764.08 0.00 32288.29 30958.88 11604.54

Irrigation pumpsets, Lift Irrigation Schemes / Socities (above 10 HP)

LT - 4b 61.120 23.120 167 1.830 0.05 222.90 51.34 39.86 0.93 0.00 40.79 23.85 68.28

Private Horticultural Nurseries, Coffee, Tea, Coconut & Arecanut Plantations

LT - 4c 61.121 23.121 2212 6.090 0.17 285.16 710.52 171.75 1.91 0.00 173.66 118.48 765.70

Industrial, Non-Industrial Htf. & Motive Power including lighting

LT - 5a

to d

61.129, 61.130, 61.131, 61.133

23.129, 23.130, 23.131, 23.133

21310 135.470 3.79 525.67 482.41 7095.94 23.62 -1.70 7121.26 7097.22 506.45

Water Supply -Sewerage pumping - VP/TP & others

LT - 6a 61.125 23.125 13196 88.450 2.48 434.73 7068.60 3849.30 -4.07 0.00 3845.23 2441.32 8472.51

Public lighting - VP/TP & others

LT - 6b 61.126 23.126 10010 53.600 1.50 454.93 1958.92 2422.43 17.68 1.70 2438.41 1761.40 2635.93

Temporary Power Supply LT - 7 61.145 23.145 8964 20.150 0.56 1101.55 37.36 2134.77 76.96 -7.89 2219.62 2134.77 122.21 KPC 76 13.030 0.36 TOTAL OF LT 1835759 2674.658 74.92 388.09 25618.34 107973.33 -4181.36 -9.26 103801.23 98878.31 30541.26

93


Account Head - LT Category

Tariff

Account Code

No. of Consu mers

Units Sold Average Realizatio

n Rate per Unit

(Ps.)

Opening balance as on

01.04.2011


DCB (in lakhs)

Net provision

for unbilled revenue (in lakhs)

Provision for

withdrawal of

revenue (in lakhs)


Accounts (in lakhs)

Collection for the

year 11-12 (in lakhs)

Closing Balance (in lakhs)

Demand Series

ClosingBalance Series

Units (MU)

% of Units Sold

Public Water Supply & Sewerage Pumping

HT - 1 61.250 23.250 57 77.640 2.17 431.07 958.49 3315.64 31.17 0.00 3346.81 2647.25 1658.05

Industrial, Non-Industrial, Non-Commercial and Railway Traction

HT - 2a 61.255 23.255 554 581.970 16.30 560.74 3996.84 32046.45 586.78 0.00 32633.23 30762.64 5867.43

Commercial HT - 2b 61.256 23.256 541 203.050 5.69 700.25 1127.11 13963.76 254.80 0.00 14218.56 13937.67 1408.00

Irrigation and Agricultural Farms, Private Horticultural Nurseries, Coffee and Tea and Arecanut Plantations.

HT - 3a&b

61.260 23.260 11 13.220 0.37 149.48 10.76 179.47 18.14 0.00 197.61 98.14 110.23

Residential Apartments and Hospitals.

HT - 4 61.271 23.271 62 19.650 0.55 474.24 59.29 925.19 6.70 0.00 931.89 904.65 86.53

TOTAL OF HT 1225 895.530 25.08 573.16 6152.49 50430.510 897.590 0.000 51328.10 48350.35 9130.24

TOTAL (LT + HT) 1836984 3570.188 100.00 434.51 31770.83 158403.84 -3283.77 -9.26 155129.33 147228.66 39671.50

Sundry debtors for electricity tax

1056.42 6108.73 0.00 0.00 6108.73 5899.63 1265.52

Misc. receipts from consumers (Interest)

9599.86 0.00 0.00 2373.25 1077.91 10895.20

Less : Revenue suspense account

-39.17 -15.82

Misc. receipts from consumers (Other than Interest)

818.46 818.46 818.46

Less : Provision for withdrawal of revenue demand

365.21 334.22

Less : Provision for doubtful dues from consumers

5082.98 5300.26

Less : Withdrawal of revenue demand

82.07 82.07

GRAND TOTAL 1836984 3570.188 100.00 434.51 37018.09 165248.96 -3283.77 -9.26 164347.70 155024.66 46213.56

94


Subsidy received from GOK in 2011-12 against the demand raised during 2011-12 towards Free Power Supply

to IP Sets having connected load upto 10 HP and to BJ/KJ consumers consuming upto 18 Units per month,

including Opening balance and Other arrears

(Rs. in lakhs)

Sl.

No. Particulars

No of Live Installations Consumption in Mus Opening

Balance as

on

01.04.2011

Demand Subsidy

released

for 2011-12

Balance

as on

31.03.2012 Metered Un-

Metered Total Metered

Un-

Metered Total Metered

Un-

Metered

Total bill

amount

1 2 3 4 5 6 7 8 9 10 11 12 13 14

1 Power supply to IP Sets of up

to 10 HP (LT4a)

165989 52360 218349 685.172 373.759 1058.931 8334.67 21277.35 9525.98 30803.33 26188.00 12950.00

2 Power supply to BJ/KJ upto 18

Units per month per

Installations

103844 19067 122911 12.439 3.909 16.348 830.97 547.58 172.10 719.68 720.00 830.65

3 Amount refunded in respect of

IP Set payment made by

farmers from 01.04.2001 to

31.03.2003

0 0.000 3179.74 0.00 3179.74

4 ROR Subsidy

0 0.000 4847.86 0.00 4847.86

6 Gap to be paid by GOK as per

KERC Order

0 0.000 9550.00 0.00 4289.83 5260.17

TOTAL 269833 71427 341260 697.611 377.668 1075.279 26743.24 21824.93 9698.08 31523.01 31197.83 27068.42

95


STATEMENT SHOWING CATEGORY WISE, AGE WISE DETAILS FOR THE ARREARS OUTSTANDING AS ON 31.03.2012

(Rs In Lakhs)

A/c Code (23 series)

Tariff Particulars Account

Head

Agewise analysis for Closing Balance

Less than one year

More than ONE year but less than

THREE years

More than THREE years but less than FIVE

years

More than FIVE years

Total (col. 5 to 8)

1 2 3 4 5 6 7 8 9

I.LT Category

23.1017 LT-1 BJ/KJ 61.1017 1565.07 241.16 391.79 412.42 2610.44

23.1107 LT-2A Domestic 61.1107 1768.58 190.25 236.20 73.39 2268.42

23.1117 LT-2B Educational Institutions 61.1117 14.81 0.86 0.39 0.05 16.10

23.1157 LT-3 Commercial 61.1157 526.96 25.40 49.35 12.80 614.51

23.1197 LT-4A IP Upto 10 HP 61.1197 1762.41 1670.63 9257.63 3827.21 16517.88

23.1207 LT-4B IP Above 10 HP 61.1207 54.44 14.06 19.48 10.88 98.86

23.1217 LT-4C Horticultural nurseries 61.1217 660.66 293.60 79.89 2.67 1036.82

23.1297 LT-5B(I) Industries-5HP&Below 61.1297 35.65 8.29 9.71 4.43 58.07

23.1307 LT-5B(II) Industries-Above 5 but below 40 HP 61.1307 101.09 14.87 8.65 3.29 127.89

23.1317 LT-5B(III) Industries- 40HP & above but below 67 HP 61.1317 56.16 4.09 3.45 3.92 67.62

23.1337 LT-5B(IV) Industries-67HP & above 61.1337 17.39 0.01 0.42 2.14 19.96

23.1257 LT-6A Watersupply 61.1257 6412.54 1834.24 2112.39 1261.37 11620.55

23.1417 LT-6B Streetlight 61.1417 2210.09 821.72 633.95 185.05 3850.81

23.1457 LT-7 Temporary 61.1457 8.92 0.15 0.10 0.03 9.21

TOTAL (LT) - A 15194.78 5119.33 12803.40 5799.64 38917.16

II.HT Category

23.2507 HT-1 Watersupply 61.2507 1385.09 106.39 50.19 12.22 1553.89

23.2557 HT-2A Industries 61.2557 33.42 2358.16 0.00 300.91 2692.49

23.2567 HT-2B Commercial 61.2567 42.78 0.00 0.00 1.64 44.42

23.2607 HT-3A Lift irrigation 61.2607 88.96 0.16 0.00 0.00 89.12

23.2717 HT4B Colony supply 61.2717 5.63 0.17 0.00 0.00 5.80

TOTAL (HT) - B 1555.87 2464.89 50.19 314.77 4385.72

GRNAD TOTAL - (A+B) 16750.66 7584.22 12853.59 6114.41 43302.88

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