PRAKASH CHANDRA JAIN & CO. 74-76, Gayatri Chambers, Near ... · PRAKASH CHANDRA JAIN & CO....

PRAKASH CHANDRA JAIN & CO.Chartered Accountants

74-76, Gayatri Chambers,Near Railway Station,

Alkapur!, Vadodara - 390005.Phone (0) 0265 - 2331056, 2334365

Mobile: 98980 99357Fax: 91--265-2331056_

E-mail: [email protected]

AUD:[TOR'S REPORT

To,The MembersOf Gujarat Energy Transmission Corporation Limited

1. We have audited the attached Balance Sheet of Gujarat Energy TransmissionCorporation Limited (hereinafter referred to as 'GETCO' / 'the Company') as at31st t--1arch,2012, the Profit and Loss Statement and also the Cash FlowStatement for the year ended on that date, annexed thereto. Preparation ofthese financial statements is the responsibility of the company's management.Our responsibility is to express an opinion on these financial statements basedon our audit. .

2. We conducted our audit in .accordance with auditing standards generallyaccepted.In India. Those standards require that W9. plan and perform the auditto obtain reasonable assurance about whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis,evidence supporting the amount and disclosure in the financial statements. Anaudit also includes assessing the accounting used and significant estimate madeby management, as well as evaluating the overall financial statementspresentation. We believe that our audit provides a reasonable basis for ouropinion. The company is governed by the provisions of the Electricity Act, 2003read with the rules and the regulations issued there under. The Section 616 (C)of the Companies Act, 1956, also provides that special acts like Electricity Act,2003 will apply to the extent the provisions of the Companies Act, 1956 areinconsistent with the provision of those acts. Accordingly, the financialstatements of GETCOfor the year 2011-12 are compiled and reported.

3. As required by the Companies (Auditor's Report) Order, 2003 issued by theCentral Government of India in terms of Sec. 227(4A) of the Companies Act,1956, we enclose in the annexure a report on matters specified in paragraphs 4and 5 of the said Order.

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

a) We have obtained all the information and explanations, which to thebest of our knowledge and belief were necessary for the purpose ofour audit.

b) In our oplnlon, proper books of accounts as required by law havebeen kept by the company, so far as it appears from ourexamination of the books of the Company.

The Balance sheet, Profit & Loss Statement and Cash FlowStatement dealt with by the report are in agreement with the booksof account of the Company.

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Chartered Accountants

74-76, GayatriChambers,NearRailwayStation,

Alkapuri,vadodara - 390 005.Phone(0) 0265 - 2331056,2334365

Mobile: 98980 99357fax: 91-265-2331056


PRAKASH CHANDRA JAIN & CO.

d) According to the notification 02/05/2001 CL.V dated 23/03/2002vide paragraph 8(ii) of the Department of Company Affairs theprovisions of Section 274(1) (g) of the Company's Act, 1956 are notapplicable to the Company.

e) In our opinion, the Balance Sheet, Profit & Loss Statement and CashFlow Statement dealt with by this report are in compliance with theAccounting Standards referred to in Section 211 (3C) of theCompanies Act, 1956.

f) We draw attention,i. To Note no. 36, regarding various accounts being subject to

reconciliation and adjustment.ii. To Note no. 60, regarding revision in percentage of Govt. Grants,

Subsidy and Consumer Contribution credited to Profit and LossStatement.

g) Subject to paragraph 4 f) above, in our opinion and to the best ofour information and according to the explanation given to us, thesaid accounts read together with accountlnq policies and notesthereon, given the information required by the Companies Act, 1956,in the manner so required, and give a true and fair view inconformity with accounting principles generally accepted in India:

i. In the case of Balance Sheet, of the state of affair of thecompany as at 31st March, 2012.

ii. In the case of Profit & Loss Statement, of the profit for the periodended on that date and

iii. In case of Cash Flow Statement, of the cash flow for the yearended on that date.

Place: VadodaraDate: 27/09/2012

For Prakash Chandra Jain & Co..Chartered Accountants

Fir Registration No. 002438C, ~

(C.A. inesh Chand Jain)PartnerMembership No. 041235

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H.O. : 123-124, Bapu Bazar, IInd Floor, UOAIPUR·313 001. Ph.: 0294 - 2416169, 261072 Fax: 0294 - 2561072Branch: 101, Building 3D. Oheeraj Enclave CHSL, Opp. Bhor Industries, W.E. Highway. Borivali (E), Mumbai-400 066.

Ph.: 022 - 40165342 Fax: 022 - 40)65342

PRAKASH CHANDRA JAIN & CO.Chartered Accountants

74-76, Gayatri Chambers,Near Railway Station,

Alkapuri, Vadodara - 390. 005.Phone (0) 0265 - 2331056, 2334365

Mobile: 98980 99357Fax: 91-265-2331056


Annexure (as referred to in paragraph 3 of our report on even date)

1. The company has generally maintained the records of Fixed Assets, showing, except in certaincases, full particulars, including quantitative details and situation of fixed assets.

2. According to the information and explanations given to us, the fixed assets of the Companyhave been physically verified during the year in accordance with a programme of verification.The discrepancies noticed on physical verification were not material and they have beenproperly dealt with in the books of account.

3. There' has not been any substantial disposal of Fixed Assets during the year.

4. Inventory has been physically verified once during the year by the management. In ouropinion, the frequency of such verification is reasonable.

5. The procedures of physical verification of inventory followed by the management arereasonable end adequate in relation to the size of the company and the nature of Its business.

6. On the basis of our examination of the records of inventory, we are of the opinion that thecompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification were not material.

7. The Company has neither granted nor taken any loans, secured or unsecured tof fromcompanies, firms or other parties covered in the register maintained under section 301 of thecompanies Act, 1956. Accordingly clauses (iii) (b) to (iii) (d) of Paragraph 4 of the Order arenot applicable.

8. In our opinion and according to the explanations and information given to us by themanagement, there are adequate internal control systems, commensurate with the size of thecompany and the nature of its business, with regard to the procedure for the purchase ofinventory and fixed assets and income from transmission.

9. According to the lnformation and explanation given to in section 301 of the Companies Act1956, during the year, no information is to be entered in the register maintained under thatsection. Accordingly Clause (v) (b) of paragraph 4 of the Order is not applicable.

10. Since the company has not accepted any deposit from the public, this clause of compliancewith the directives issued by the Reserve Bank of India and provisions of Section 58-A, 58-AAand other relevant provisions of the Companies Act, 1956 and rules framed there under, arenot applicable.

The Company has system of departmental pre payment audit. Further, the Company hasoutsourced the function of Internal Audit to a firm of Chartered Accountants. In our opinion,

" the said internal audit system is commensurate with the size and nature of the business of·,·pt""f"r. ,."-"'<~~e Company.

'~ <f!12. \:rl{€ Central Government has prescribed maintenance of Cost records under section 209

(y\'(.) of the Companies Act 1956. The company has appointed a firm of Cost Accountants for~ , r; of 5

"''''

11.

23-124, 8apu8azar,IInd Floor.UDAIPUR-313 001. Ph.: 0294 - 2416169, 261072 Fax: 0294 - 2561072101,Building3D,DheerajEnclaveCHSL,Opp.BhorIndustries,wE. Highway,Borivali(E),Mumbai-400066.Ph. 022- 40165342Fax: 022- 40165342

PRAKASH· CHANDRA JAIN & CO.Chartered Accountants

74·76, Gayatri Chambers,Near Railway Station,

Alkapuri, Vadodara. 390 005.Phone (0) 0265 - 2331056, 2334365

Mobile: 9898099357Fax: 91-265-2331056


preparation of Cost Records. We have broadly reviewed the cost records and are of theopinion that, prima facie, the prescribed records have been made and maintained.

13. According to the records of the company, the company is regular in depositing undisputedstatutory dues, if any, including Provident Fund, Investor Education and Protection Fund,Employees' State Insurance, Sales Tax, Custom Duty, Excise Duty, Income Tax, Service Tax,Wealth Tax, Cess and any other statutory dues with the appropriate authorities.

14. (i) As per the Notification of The Gujarat Electricity Industry (Reorganization and Regulation)Act, 2003, the statutory liabilities, which may arise in regard to the dealing before thedate of transfer, shall vest in the Company and therefore we are unable to comment onwhether there are any unpaid dues on account of dispute in respect of sales tax, servicetax, income tax, customs duty, wealth tax, excise duty and Cess.

(Ii) According to information and explanation given to us dues in respect of sales tax, servicetax, lncor-ie. ~?X,customs. duty, weelt'i. 'eX excise duty and cess; which have not beendeposited on account of any dispute during the year under audit are as follows:

Nature of Statute Amount Disoute oendina at forumIncome Tax Act, for Rs. 626.47 lacs Income Tax Appellate TribunalAssessment Year 2008/09(Income Tax)Income Tax Act, for Rs. 147.52 lacs Commissioner of Income TaxAssessment Year 2008/09 (Appeals)(Frinqe Benefit Tax)Income Tax Act, for Rs. 196.50 lacs Commissioner of Income TaxAssessment Year 2009/10 (Appeals)(Income Tax) -Finance Act, for the Rs. 35.40 lacs Commissioner of Appeals - Centralperiod October 2007 to ExciseMarch 2008 (Service Taxexcludlno Interest) -

15. The Company does not have accumulated losses at the end of financial year and has notincurred any cash loss in the financial year under audit.

As per the FRP Notification, the Company has been allocated Unsecured Loans from GUVNL.As per information and explanations given by the management, GUVNL has serviced all theloans including their repayment for and on behalf of the Company. In view of the above weare unable to give any opinion on regularity in paying interest and principal amount due toBank. However company is generally regular in repaying principal amounts and interest

~d~' ortion thereon for loans taken directly from the bank and financial institutions ...,<j.'i> rs J.~u.... -~-----

,,~././' 17. ->, ~ ompany has not granted loans or advances on the basis of security by way of pledge of/ s11, debentures and other securities.

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16.

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?-c___ ~~ : 123·124,BapuBazar,IIndFloor,UDAIPUR·313001.Ph.:0294·2416169,261072Fax: 0294·2561072

Branch: 101,Building3D,OheerajEnclaveCHSL,Opp.BhorIndustries,W.E.Highway,Borivati(E),Mumbai·400066.Ph.: 022 . 40165342 Fax: 022·40165342

Chartered Accountants

74-76, Gayatli Chambers,Near Railway Station,

Alkapuri, Vadodara- 390 005.Phone (0) 0265 - 2331056, 2334365

Mobile: 9898099357Fax: 91-265-2331056


PRAKASH CHANDRA JAIN & CO.

18. In view of operations of the company and nature of its business, clauses (xiii) and (xiv) ofCompanies (Auditor's Report) Order, 2003 are not applicable to the company.

19. As per the information given to us by the management, the company has not given anyguarantee for loans taken by others from banks or financial institutions.

20, Funds required by the Company were provided by GUVNL from time to time and in absence ofinformation and proper records with Company in respect of the source from which the fundswere provided by GUVNL, we are unable to comment on the application of funds for thepurpose for which these loans were obtained. However during the year under audit, TermLoans were sanctioned /obtained directly by the Company and amount withdrawn was appliedfor the purpose for which it was obtained.

21. Funds required by the Company were provided by GUVNL from time to time and in absence ofinformation and proper records with the Company in respect of the source from which thefunds were provided by GUVNL, we are unable to comment on nature of funds raised on shortterm basis and lts t:t;~2=~ic~ for long-term tnvestrn=nt.

22. According to information and explanation given to us, the Company has not made anypreferential allotment of shares to parties and companies covered in the register maintainedunder-Section 301 of the Companies Act, 1956.

23. The Company has not raised money by public issue during the year. Accordingly clause 4(xx)of the order is not applicable.

24. Based on the audit procedures performed and on the basis of information and explanationsprovided by the management, we report that no fraud on or by the Company has beennoticed or reported during the course of audit.

For Prakash Chandra Jain & Co ...Chartered AccountantsFi[ Registration NO.002438C

I

(C.A. Di sh C. Jain)PartnerMembership No. 041235

Place: VadodaraDate: 27/09/2012

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H.O. : 123-124,Bapu Bazar, IInd Floor, UDAIPUR-313 001. Ph.: 0294 - 2416169,261072 Fax: 0294 - 2561072Branch: 101,Building3D, Dheeraj EnclaveCHSL,Opp. 8hor Industries.WE. Highway,Bonvaf (E). Mumbai-400066.

Ph.: 022 - 40165342 Fax: 022 - 40165342

• ~~_ ¢ >!I$,ih

~GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED

c BALANCE SHEET AS AT 31st MARCH 20121 ~ 0

PARTICULARS NOTE fAmount in LakhslNO. As at As at

31st March 2012 31st March 2011I. EQUITY AND LIABILITIES(1 ) SHAREHOLDERS FUNDS

(a) SHARE CAPITAL 2 51138.34 49471.67(b) RESERVES AND SURPLUS 3 204358.09 171084.08(e) DEFERRED GOVT.GRANTS.SUBSIDIES. CONTRIBUTIONS 4 96653.59 81113.31

TOTAL(1) 352150.02 301669.06(2) SHARE APPLICATION MONEY PENDING ALLOTMENT (2) 8420.00 10000.00

(3) NON-CURRENT LIABILITIES(a) LONG TERM BORROWINGS 5 415739.58 272106.23(b) DEFERRED TAX LIABILITIES (NET) 0.00 0.00(e) OTHER LONG_TERM LIABILITIES 6 2433.44 2947.65(d) LONG-TERM PROVISIONS 7 18461.87 16357.55

TOTAL(3) 436634.89 291411.43

(4) CURRENT LIABILITIES.(a) SHORT TERM BORROWINGS 8 3698.66 18230.98(b) TRADE PAYABLES s 21333.69 40751.69(e) OTHER CURRENT LIABILITIES 10 200650.56 188564.41(d) SHORT TERM PROVISIONS

.'11 1234.13 1282.11

. TOTAL(4) 226917.04 248829.19TOTAL (1+2+3+4) 1024121.95 851909.68

II. ASSETS(1 ) NON-CURRENT ASSETS

(a) FIXED ASSETS(i) TANGIBLE ASSTS 12 715036.54 616481.45

Iii) iNTANGIBLE ASSETS. _. - - 1~~ 0.00 0.00

liii) CAPITAL WORK-iN-PROGRESS 12 233889.62 168187.95(iv) iNTANGIBLE ASSETS UNDER DEV. 12 0.00 0.00

(b) NON-CURRENT INVESTMENTS 13 0.10 0.10(e) DEFERRED TAX ASSETS (NET) 0.00 000(d) LONG-TERM LOANS AND ADVANCES 14 3459.74 2370.04Ie) OTHER NON-CURREN T ASSETS 15 2.90 3.02

TOTAL(1) 952388.90 787042.57(2) CURRENT ASSETS

(a) CURRENT INVESTMENTS 16 0.00 0.00(b) INVENTORIES 17 19942.41 17856.77(e) TRADE RECEIVABLES 18 39473.82 39105.48

(d) CASH AND BANK BALANCES 19 2261.23 1462.21(e) SHORT-TERM LOANS AND ADVANCES 20 3756.32 1624.90(f) OTHER CURRENT ASSETS 21 6299.27 4817.75

TOTAL(2) 71733.05 64867.11

TOTAL(1+2) 1024121.95 851909.68

Significant Accounting Policy and Notes on Accounts - I 1 to 62

As per our report of even date attachedFor Prakash Chandra Jain & Co.Chartered AccountantsFir 9 No.,OQ2438C

For and on behalf of Board of DirectorsGujarat EnerfY Transmission Corporation Limited

"'~"~~,"~;pChairman Managing Director

~ •.,'.P_.-L(B.C.SHAH) (Ji~a)General Manager (F&A) Company Secretary

Place:vadodra {Date:..z 1(5) 2....Cl (L

Place:Gandhinagar

Date: += t '.., I'7' fj (~D L--

ff GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED

STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31ST MARCH 2012

PARTICULARS NOTE . [Amount In Lakhs)·NO. As at As at

31st March 2012 31st March 2011

1.- REVENUE FROM OPERATIONS 22 176217.14 141753.41II. OTHER INCOME 23 1533.19 1308.73III. TOTAL REVENUE(I+II) 177750.33 143062.14IV. EXPENSES:

EMPLOYEE BENEFITS EXPENSES 24 30665.32 30258.18FINANCE COSTS 25 49409.08 31632.78DEPRECIATION AND AMORTIZATION EXPENSE 26 45560.36 36922.60OTHER EXPENSES 27 20981.30 17157.25TOTAL EXPENSES 146616.06 115970.81

V. PROFIT BEFORE EXCEPTIONAL AND EXTRAORDINARY 31134.27 27091.33ITEMS AND TAX IIII-IV)

VI. EXCEPTIONAL ITEMS 28 0.00 0.00VII. PROFIT BEFORE EXTRAORDINARY ITEMS AND TAX (V-VI) 31134.27 27091.33

"VIII. EXTRAORDINARY ITEMS

PRIOR PERIOD ITEMS 29 (130.05) 518.07IX. PROFIT BEFORE TAX (VII-VIII) 31264.32 26573.26X. TAX EXPENSE

CURRENT TAX 30 6323.64 5515.69EARLIAR YEARS TAX 0.00 0.00DEFERRED TAX 0.00 0.00

XI. PROFIT(LOSS) FOR THE PERIOD FROM GOr. rlNulNG - 24940.68 21057.57..OPERATIONS (VII-VIII)

XII. PROFIT(LOSS) FROM DISCONTINUING OPERATIONS 0.00 0.00X~II. TAX EXPENSE OF DISCONTINUING OPERATIONS 0.00 0.00XIV. PROFIT(LOSS) FROM OISCONTINUING OPERATIONS 0.00 0.00

(AFTER TAX) (XII-XIII)

XV. PROFIT (LOSS) FOR THE PERIOD (XI+XIV) 24940.68 21057.57XVI. EARNING PER EQUITY SHARE

BASIC & DILUTED 62 4.88 4.26

Significant Accounting Policy and Notes on Accounts 1 to 62

As per our report of even date attachedFor Prakash Chandra Jain & Co.Chartered AccountantsFir egoNo. 002438C, ,

For and on behalf of Board of DirectorsGujarat Energy Transmission Corporation Limited

'''~;!.~,3.:3'Chairman ManagingDirector

~ . ,. '_.-1}.-.(B.C. SHAH) (~a)General Manager (F&A) Company Secretary

Place: vadoda,.Date::2...+ r81 2..0 \ '-

Place: GandhinagarDate: ?---:<)={a! ~~t I...... "

~~GUJARAT ENERGY TRANSMISSION CORPORATION LlMITEO

c· CASH FLOW STATEMMENT FOR THE YEAR ENOED 31st MARCH,20121 0

[Amount in lakhsPARTICULARS As at As at

31st March, 2012 31st March 2011Cash Flow from Operating ActivitiesNet Profit Before Tax 31264.32 26573.22AdjUstments For:Add I (Less) :Net Gain/LOSS on disposal of Fixed Assets 524.39 360.15Provision for Leave Encashment 1829.59 1697.16Depreciation 45653.47 37020.96Interest and financing charges 49409.07 31632.81Dividend Received 0.00 0.00

Operating Profit Before Working Capital Changes 128680.84 97284.30Adjustments for Chanqes in Working Capital(Increase) IDecrease In Inventories (2085.64) 3864.25(Increase) /Decrease In Sundry Debtors (368.34) (733.79)(Increase) IDecrease In Loan & advances (983.06) (34817)Increase I(Decrease) In Trade Payables and other liabilities (26806.50) 12612.19(Increase) /Decrease In Other Current Assets (1727.95) (2763.23)

CASH GENERATED FROM OPERATIONS .. 96709.35 109935.55Direct Tax Paid (7762.75) (1094.35)

CASH FLOW BEFORE EXTRAORDINARY ITEMS 88946.60 108841.19Exceptional Items - -

A. NET CASH FROM OPERATING ACTIVITIES 88946.60 108841.19- . - _.

CASH FLOW FROM INVESTING ACTIVITIESPurchase of Fixed Assets (203342.87) (156524.64)Sale of Fixed Assets 58609.92 21140.11(Increase)/Decrease in CWIP (56704.00) (44260.56)Purchase of Shares 0.00 (0.10)(Increase)fOecrease in Assets not in use 42.93 (25.31)Dividend Received 0.00 0.00B. NET CASH FROM INVESTING ACTIVITIES (201394.02) (179670.50)

CASH FLOW FROM FINANCING ACTIVITIESShare application money 8420.00 10000.00( Repayment) I Proceeds From Borrowings 147694.56 64849.53Proceeds from Consumer Contributionl Grants/subsidies 15540.27 33080.93Finance Cost (58408.40 (37574.98C. NET CASH USED IN FINANCING ACTIVITIES 113246.43 70355.48

NET INCREASE IN CASH & CASH EQUIVALENTS(A+B+C) 799.01 (473.83)CASH AND CASH EQUIVALENT (OPENING BALANCE) 1462.22 1936.05CASH AND CASH EQUIVALENT (CLOSING BALANCE) - 2261.23 1462.22

As per our report of even date attachedFor Prakash Chandra Jain &. Co.Chartered AccountantsFir g. 00?438C

Place: vadodara (Date: '2yJ- f.3 2..... ~ ( L

For and on behalf of Board of Directors'''.:;:'::t;:'"' ceree rat ion Um ite d ,

'OJ,"""., =, ,,~Chairman ManagingDirector

~ II '.I_.J-.(B.C,SHAH) (N\~)General Manager (F&A) Company Secretary

Place: Gandhinagar

Date:~~CIL

GUJARAT ENERGY TRANSMISSION CORPORATION LTD.

NOTE FORMING PART OF BALANCE SHEET AND STATEMENT OF PROFIT AND LOSS

1. SIGNIFICANT ACCOUNTING POLICIES

INTRODUCTORY:Gujarat Energy Transmission Corporation Ltd. (GETCO) was incorporated under Companies Act,1956 on 19.05.1999. The Certificate of Commencement of Business was received on 23.06.1999 fromthe Registrar of Companies. GETCO, set up for transmission of electricity through various circlesand divisions of erstwhile Gujarat Electricity Board (GEB), pursuant to the Gujarat ElectricityIndustry (Reorganization and Regulation) Act, 2003, was vested with the assets, properties,liabilities, Obligetiona.proceedings forming part of transmission undertaking specified in ScheduleB of Gujarat Electricity Industry Reorganization and Comprehensive Transfer Scheme, 2003. Thetransfer date was 01.04.2005. The transfer of assets and liabilities made under the above- transferscheme was made by the Government of Gujarat vide notification no. GHU-2006-91-GUV-l106-590-K dated 03.10.2006 (hereinafter referred to as "the notification").The consideration for the transfer of undertaking comprising of the values of assets and liabilitiesand the proceeding relating to transmission activities of erstwhile GEB as specified in thenotification will be discharged by GETCO by issue of Equity Shares of Rs.10j - each fully paid forconsideration other than cash to Cujarat Urja Vikas Nigam Ltd. (GUVNL), the successor company toerstwhile GEB as may be directed by Government of Gujarat (GaG). GETCO has already madereference to G UVNL to approach GoG for seeking direction regarding the issue of Equity Shares andto issue a fresh Notification in this regard.All the equity shares held by erstwhile GEB in the Company stood transferred by operation of law inthe name of GUVNL as per the Notification.

SIGNIFICANT ACCOUNTING POLICIESThe Company is engaged in the business of Transmission of Electricity and is governed by theprovisions of the Electricity Act, 2003 with effecl from 10th June 2003. In case oJ inronsistencybetween the provision of the Electricity Act, 2003 and the Companies Act, 1956 the provisions offormer are applied.

(1) Basis of Accounting:The financial statements have been prepared under the historical cost convention, in accordancewith generally acceptable accounting principles (GAAP) and applicable Accounting Standardsissued under Section 211(3C) and Section 210A(1) of the Companies Act 1956 and relevantpresentational requirement of the Companies Act, 1956.

(2) Revenue Recognition(i) Revenue

Transmission Income is accounted on the basis of tariff rates notified by Gujarat Electricity. Regulatory Commission (CERe) or as mutually determined among the GUVNL Companies asper Transmission Agreement (TA), whichever is less. -

The company has recognized the revenue from the following on accrual basis:

Wheeling charges from captive power generatorsMaintenance ChargesReactive energy chargesOperation and Maintenance charges from users of dedicated linesParallel Operation Charges from Captive Power Producers under bi-lateral agreements.

{ii] The company has recognized revenue from sale of scrap and income from consultancy on actualrealization and from contract service on finalization of bill

{iii)Other IncomeOther income is recognized on accrual basis except when ultimate realization of .such income isuncertain.

(iv) Insurance ClaimsClaims lodged with the Insurance Company in respect of risks covered are accounted for as andwhen the claim is received.

(v) Liquidated damages / warranty claims are recognized on actual receipt basis.

s.e,gpAs:;ggW_LWI £ 1)., -.2g,m,,:: 4.

(3) (a) Fixed Asset.

(i) The company has received the Gross Fixed assets as well as Accumulated Depreciation vide theNotification.

(ii) Fixed Assets are stated at cost of acquisition including freight, insurance, duties, taxes and otherincidental expenses incurred to bring the asset in present location and condition and otherdirect costs are capitalized until the assets are commercially put to use and include financingcosts relating to any borrowing attributable to acquisition.

(iii) In the case' of self-constructed assets, deposit works / cost plus contracts where final settlementof bills with contractors is pending, capitalization is done on commercially put to use subject tonecessary adjustment in the-year of final settlement.

(iv) The cost of land includes provisional deposits, payments / liabilities towards compensation,rehabilitation and other expenses. Deposit / advances / expenditure incurred in respect of landfor which possession is not taken is shown as Advance for Fixed Assets.

(v) Expenditure on leveling, clearing and grading of land is treated as land development cost.

(b) Capital work - in - progress (CWlP)

(i) Capital work - in- progress includes the cost incurred on fixed assets that are not yet ready forthe intended use. All Expenditures of construction division are allocated to the projects on prorata basis to the accretion made to respective project. However common expenditure ofCorporate Office are allocated to Capital work - in - progress at flat rate determined on the basisof amount of allocable expenditure incurred during the year.

(ii) 'Claims for price variation / exchange rate variation in case of contracts are accounted for onacceptance basis.

(4) Depreciation and Amortization

(i) Depreciation on Fixed Assets excluding Fixed Assets of 5,,,,< LOad Dispatch Center (SLDq-;,asbeen provided on Straight Line Basis as per the rates prescribed by Central Electricity RegulatoryCommission (CERe) as notified. Depredation on Fixed Assets of SLDC has been provided onStraight Line Basis. In respect of the depreciable assets for which no rate has been specified bythe CERC and assets of State Load Dispatch Centre (SLDC), rate as specified in Schedule XIV tothe Companies Act, 1956 is adopted. Depreciation on fixed assets has been provided from thedate of assets put to use/up to the date of assets withdrawn horn use.

(ii) Assets having original cost upto Rs. 5000/- have been fully charged to revenue in the year inwhich the assets are purchased.

(iii) Depreciation on addition / deletion of Fixed Assets are provided on pro-rata basis from the dateon which the asset is put to use / discarded.

(iv) Lease Hold land including development cost is depreciated over the tenure of the lease.(v) In respect of "Capital Expenditure resulting in an asset not belonging to the Company" are

depreciated as prescribed by the "Electricity (Supply) (Annual Accounts) Rules, 1985".

(5) Intangible Assets

The company has policy to write off such expenditure in the year in which it is incurred ..

(6) Inventories

The Inventories of the Company have been valued on the following basis

Consumable Stores and Spares : Cost as per Weighted Average MethodConstruction Stores Cost as per Weighted Average MethodSteel Scrap and Conductor scrap Book value or Net Realizable Vaiue (NRV)

whichever is lowerMandatory Spares of consumable nature Cost as per Weighted Average MethodSurplus Material Cost as per Weighted Average Method

(7) Borrowing Cost

Borrowing costs that are attributable to the acquisition, construction or modernization of qualifyingassets are capitalized as part of such assets. A qualifying asset is an asset that necessarily takes asubstantial period of time to get ready for its intended use. Such borrowing costs are apportionedon the average balance of expenditure on CWIP for the year. All other borrowing costs are chargedto revenue.

(8) Foreign Exchange TransactionsForeign currency transactions during the year are recorded at rates of exchange prevailing on thedate of transactions. Foreign currency assets and liabilities are translated into Rupees at the rate ofexchange prevailing on the date of the Balance Sheet. All exchange differences are dealt with in thestatement of profit and loss, except those relating to the acquisition of fixed assets, which areadjusted in the cost of the assets,

(9) Employee Benefits:a, Retirement Benefits

(i) Provident FundContribution to Provident F\U1d is made to Government/ Recognized provident C\U1dasrequired by ~e statues/ rules.

(ii) GratuityLiability towards gratuity payable to employees is covered by Gratuity Trust Fund managed byGUVNL (Holding Company). The contribution payable as per actuarial valuation is charged toProfit and Loss Statement of the company.

(iii) Leave EncashmentThe benefit of encashment of the leave is given to the employees of the company during theirservice and on retirement. The company provides the liability for leave encashment benefit onthe basis of the unutiIized leave balances at end of the year.

(iv) Leave Travel ConcessionExpenditure on Leave Travel Concession to retiring employees is recognized on the basis ofactual reimbursement.

(10) Taxes on Income

(i) The provision for taxation is ascertained on the basis of assessable profits computed inaccordance with the provisions of the Income-tax Act, 1961.

(ii)Deferred tax is recognized, subject to the consideration of prudence, on timing differences,being the differences between taxable incomes and accounting income that originate in oneperiod and are capable of reversal in one or more subsequent periods. The deferred tax asset isrecognized and carried forward only to the extent that there is a reasonable certainty except forcarried forward losses and unabsorbed depreciation which is recognized on virtual certaintythat the asset will be realized in future.

(11) Provi~ions and Contingent Liabilities:

The Company recognizes a provision when there is a present obligation as' a result of past eventsthat probably requires an outflow of resources and a reliable estimate can be made of the amount ofthe obligation. A disclosure for a contingent liability is made when there is a possible obligation ora present obligation that may, but probably will not, require an outflow of resources. Where there isa possible obligation or a present obligation that the likelihood of outflow of resources is remote, noprovision or disclosure is made,

(12) Government Grant, Subsidy and Consumer Contribution:Contribution, Grants and subsidies towards cost of capital assets are not reduced from cost ofassets. These are treated as "Reserves and Surplus". All receipts of consumer's contributions,grants and subsidies received from P' April 2005 are treated as deferred revenue and in absence ofidentification of grants with assets, based on average useful life of assets, proportionate percentageof the year end balance is transferred to Profit and Loss Statement.Grant in excess of depreciation over the nominal value of the assets at the end of the useful life ofassets is not transferred to capital reserve for the reasons stated above.

(13) Prior Period Adjustments:All identifiable / decided items of income and expenditure pertaining to prior period which werenot" provided / accounted in earlier years are accounted through "Prior Period AdjustmentsAccount".

(14) Impairment of Assets:The company has adopted the policy to assess at each Balance Sheet date whether there is anyindication that an asset may be impaired. If any such indication exists, the Company estimates therecoverable amount of the asset. If such recoverable amount of the asset or the recoverable amountof the cash generating unit to which the asset belongs is less than its carrying amount the carryingamount is reduced to its recoverable amount. The reduction is treated as an impairment loss and isrecognized in the Profit & Loss Statement. If at the Balance Sheet date, there is an indication that if apreviously assessed impairment loss no longer exists, the recoverable amount is reassessed and theasset is reflected at the recoverable amount.

(15) General:Accounting policies not specifically referred to are consistent with generally accepted accountingpractice.

--.

2 SHARE CAPITAL:

(1IAuthorlsed:

200,00.00,000 Equity Shares each of Rs. 10 each (previous year 200,00,00,000 Equity Shares each of Rs. 10each)

[Amount In Lakhs]

000.00סס2

TOTAL

As at As at31st March, 2012 31st March 2011

NOTE PARTICULARS

NO.

200000.00

200000.00 200000.00

(2) Issued, Subscribed & Paid up

Equity Shares at the Beginning of the Accounting Period.494716674 (P.Y.472916674) Equity Shares of RS.1 0/- Each 49471.67 47291.67Addition During the Year

16666666 (P.Y.21800000) Equity Shares of Rs. 10/- Each 1666.67 2180.00Shares at the end of the Accounting Period.

5113833400 (P.Y.494716674) Equity Shares of Rs.10f- Each 51138.34 49471.67

Terms/rights attached to equity sharesThe company has only one class of equity shares having a par value of RS.10 per share. Each holder of equity shares is entitled to one vole per share.The company in AGM may declare a dividend to be paid 10 the members according to their respective rights and interest in profits and may fix the time forpayment but no dividend shall exceed the amount recommended by the Board. .,

Details of Shareholders holding more than 5% shares & Shares held by holding and/or associates of its holding companyAs at 31st March

2012As at 31st March

2011Name of Share holder No of Shares & No of Shares &

% held % heldGujarat Urja vlkas Nigam lid (Holding Company & its nominees) 498883340 482216674

- -- - :::'.5::% _. :)7.47%

Government of Gujarat 12500000 125000002.44% 2.53%

The reconciliation of the number of shares outstanding is set out belowEquity Shares atlhe beginning of the year 494716674 472916674

Add : Equity Shares issued during the Year 16666666 21800000Equity Shares at the end or the Year 511383340 494716674

The Government of Gujarat vide notification number GHU-(203)-GUV-l106-590K dated 12th December 2008 has partially modified the earlier notificationnumber GHI-2006-91-GUV-l106-590-K dated 3rd October 2006 has bifurcated earlier notified equity share capital into equity share capital of Rs38,926.66 Lakhs (i.e. 389266604 fully paid equity shares of Re. 10 each and share premium of Rs. 1,16,779.98 Lakhs effective from 1st April 2008 inrespect of transferred undertaking of erstwhile Gujarat Electricity Board (GEB) as on 1st April 2005.

3 RESERVE & SURPLUS

PARTICULARS {Amount In lakhs]


Capital Grant for Capital Support

At the beginning of the Accounting Period 6427.94 6427:94

Additions during the Year 0.00 0.00At the end of the Accounting Period 6427.94 6427.94

SurplusAt the beginning of the Accounting Period 41336.16 20278.62Additions during the Year 24940.68 21057.54

At the end of the Accounting Period 66276.84 41336.16

Securities Premium Account

At the beginning of the Accoununq Period. 123319.98 116779.98

Additions durino the Year 8333.33 6540.00

At the end of the Accounting Period 131653.31 123319.98

GRAND TOTAL 204358.09 171084.08

4 DEFERRED GOVT GRANTS SUBSIDIES CONTRIBUTIONS, ,

PARTICULARS (Amount in lakhs]As at As at

31st March, 2012 31st March 2011Subsidies towards Cost of Capital Assets 2935.05 2650,44Grants towards Cost of Capi1al Assets - 45220.08 35240.88Consumer Contribution towards Capital Assets. 48498.46 43221.99GRAND TOTAL 96653,59 81113,31

SHARE APPLIACTION MONEY PENDING ALLOTMENTPARTICULARS [Amount in lakhs]

As at As at31 st March, 2012 31st March 2011

Share Application Money 8420.00 10000.00

8420,00 10000,00Oul of Share appucatton money of Rs. 10000 lakhs of Year 2010-11. 16666666 Equity Shares of Rs. 10/· each Issued at a premium of Rs. 50 each InYear 2011·12 (Total Premium Amount Rs.833333300).During the Year 2011-12, Share application money received tor Rs. 8420 Lakhs. Terms & Condition, Number of shares proposed to be issued. amount ofpremium. the period of allotment. interest if any on refund amount is under consideration. (Refer Note No :61) The company has sufficient authorizedshare capital to cover the paid up share capital amount on allotment of shares oul of share application money.

NON-CURRENT LIABILITIES

5 LONG TERM BORROWINGSPARTICULARS [Amount in Lakhs]

As at As at31s1 March, 2012 31st March 2011

SECURED TERM LOANSFROM BANKS

Loans From Commercial Banks 266149.83 180603.53

loans for work;ng Ca~~tal - O.W· 19St:\.60

Bill Discounting under DPG 917.84 1874.68

FROM OTHER PARTIESBill Discounting under DPG

,4998.33 8259.90

loan from PFC 7295.74 7036.75

loans from REC. 9131.11 10272.50TOTAL 288492.85 210005,96

UNSECURED LONG TERM BORROWINGS:(a) Public Bonds 17650.90 2326259(b) Term loans From Other Parties

Loan from Power Finance Corporation 618.92 875.87

Loan from Others 92166.67 30587.02

ADB Prog. & Pro]. loan 6810.24 7374.79

loans for working' Capital 10000.00 0.00TOTAL 127246.73 62100.27

GRAND TOTAL 415739,58 272106,23Note .1. Loan from cornmercrat Banks IS secured against hypothecalIOn I mortgage charge on uocormns assets of vanous sub-stations along Withassociated lines for which the term loan was sanctioned. Further GUVNL has given guarantee for loans from Commercial Banks (S8S). Details of

chSecurtties qiven acalnst ea loan are as tabulated below:

Rate of Balance

Name of Bank Interest as onoutstanding as Name of Projects Covered

on 31.3.201231.3.2012 (In Rs. lakhs)

1.) Syndicate Bank 12.35% 27750.00 Term loan is secured by hypothecation I mortgage charge Ofl variousTransmission lines covered under Palanpur Circle.

2.) State Bank of India(SBS) 12.00% 2678.71 Term loan is secured by hypothecation I mortgage charge Ofl upcomingassets of Substation along with associated transmission tines covered undervarious Circles: Junagadh Circle, Nadlad Circle, Palanpur Circle, JamnagarCircle, Amreli Circle, Surendranagar Circle, Anjar Circle, Gondal Circle,Jambuva crrcte.

3.) State Bank of India(SBS) 12.00% 1999.20 Term Loan is secured by hypothecation I mortgage charge on upcomingassets of Substation along with associated transmission lines covered undervarious Circles: Junagadh Circle. Nadiad Circle, Palanpur Circle, GondallCircle, Amre!i Circle, Mehsana Circle.

(j~"'~ j'l.l~~,r '"'\~.!!( l~!( 13"ROnA, ) ¥( ~----)*" ),Jgo \.. ./,;t

.•.~")" ....._ --'../ ,><7< / '-_. _.' c"'req ACO

_~1fEggRt;~m ..~_~~~v,j,&fqfi'Iiml1'E~~~&~~~"1{ gT ,'", ," " - NOTES ON FINANCIALSTAT;;'T FOR THE~EAR E.;;EO ~1 ~2 - -, ' -- - -- ,,,",.Ii,,,

Rate ofBalance

Name of Bank Interest as onoutstanding as

Name of Projects Coveredon 31.3.201231.3.2012

(In Rs. Lakhs)

4.) Karur Vysya Bank - Ref to GUVNL 12.10% 8250.00 Term loan is secured by hypothecation I mortgage charge assets of

- Substation along with associated transmission lines covered under NavsariCircle.

5.) Kalupur Commercial Bank 10.75% 2708.33 Term l.oan is secured by hypothecation I mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Mehsana Circle, Palanpur Circle, Gondal Circle, Anjar Circle,Jambuva Circle.

6.) State Bank of India Tli 11.50% 12503.00 Term l.oan-ts secured by hypothecation I mortgage charge on upcomingassets of Substation along with. associated transmission lines covered undervarious Circles: Jambuva Circle. Nadiad Circle, Mehsana Circle. PalanpurCircle, Gondal Circle, Anjar Circle, Amreli Circle, Surendranagar Circle.

7.) United Bank of India 11.85% 19393.31 Term loan is secured by hypothecation I mortgage charge on assets ofSubstation along with associated transmission lines covered under various

- Circles: Anjar, Rajko\ & Nadiad Circle

8.) Bank of Baroda TL-I 10.75% 17500.00 Term Loan is secured by hypothecation I mortgage charqe (In assets ofSubstation along with associated transmission lines covered under variousCircles: Navsari Circle. Jambuva Circle, Nadiad Circle. Mehsana Circle,Palanpur Circle, Gondal Circle, Junagadh Circle, Amreli Circle, Anjar Circle,S'nagar Circle. .,

9.) Oriental Bank of Commerce TL- I 10.00% 18800.00 Term loan is secured by hypothecation I mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Navsari Circle, Amreli Circle, Palanpur Circle, Nadiad Circle. AnjarCircle, Rajkot Circle.

10.) Bank Of India Tl-I 12.50% 17743.58 Term loan is secured by hypothecation I mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Nadiad Circle, Junagadh Circle, S'nagar Circle, Palanpur Circle,Gondal Circle, Anjar Circle, Amreli Circle ,Navsari cncie, Mehsana Circle,

. -- .. - .. - - Jambuva Circle. . -"11.) Bank Of India Tl-II 12.25% 13755.45 Term Loan is secured by hypothecation I mortgage charge on upcoming

assets of Substation along with associated transmission lines covered undervarious Circles: Gondal Circle, Nadiad Circle, Bharuch Circle, PalanpurCircle.

12.) Bank of Maharastra 11.70% 8171.95 Term loan is secured by hypothecation I mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Navsari Circle. Jambuva Circle, Mehsana Circle, Gondal Circle.Bharuch Circle, Surendranagar Circle.

13.) Corporation Bank- Tlil 12.15% 14420.72 Term Loan is secured by hypothecation I mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Nadiad Circle, Bharuch Circle, Navsari. Circle, Gonda! Circle.Junagadh Circle, Jamnagar Circle, Amreli Circle, S'nagar Circle, MehsanaCircle, Anjar Circle.

14.) Dena Bank 11.40% 7155.83 Term Loan is secured by hypothecation I mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Amreli Circle. Anjar Circle, Bharuch Circle, Gondal Circle,Himatnagar Circle, Jambuva Circle, Jamnagar Circle, Junagadh Circle,Nadiad Circle, Navsari Circle.

15.) Indian Bank 12.00% 4904.39 Term loan is secured by hypothecation I mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Gondal Circle, Junagadh Circle, S'nagar Circle, Mehsana Circle,Amreli Circle, Palanpur Circle, Navsari Circle.

16.) Oriental Bank of Commerce TL- 11 12.00% 19886.61 Term Loan is secured by hypothecation I mortgage charge on assets ofSubstation along with associated transmission lines- covered under PalanpurCircle.

17.) State bank of Bikaner & Jaipur 12.00% 7762.23 Term loan is secured by hypothecation I mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Amreii Circle. Anjar Circle, Bharuch Circle, Gondal Circle, JunagadhCircle, Jamnagar Circle, Mehsana CirCle, Nadiad Circle, Navsari Circle,Palanpur Circle, S'nagar Circle.

18.) State Bank of India TL- II 12.00% 20680.87 Term Loan is secured by hypothecation I mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Amreii Circle, Anjar Circle, Palanpur Circle.

$.Rdr'~. } I"'-r---.... ..~ r: ""'\~.4r -.e~ \~J.i ( .' _"~' !. )tl.l3" t" ,! " ~( .:.i\~,\>,••"."b:O,:.~<..~ ') .*~_.. 11~\.. ~i·'(i

fiJf1 '-\.... ~<~"'?.a/ad; ,~.

Name of Bank

-,I

Rate of BalanceInterest as on outstanding as

31.3.2012 on 31.3.2012

11.15%

11.90%

11.85%

11.40%

12.50%

11.25%

11.25%

9.50%

10.75%

9.00%

10.75%

10.75%

Nameof Projects Covered

19.) Union Bank of India TL-II 7144.81 Term Loan is secured by hypothecation 1 mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Gondal . Junagadh & Jamnagar Circle of existing assets and forupcoming assts covered under Anjar Circle, Gondal Circle, Jambuva Circle,Junagadh Circle, Mehsana Circle, Nadiad Circle, Navsari Circle, S'nagarCircle. .

20.) Union Bank of India Tl-I 11445.03 Term Loan is secured by hypothecation 1 mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Palanpur, Amreli , Gondal 8. Jamnagar Circle

21.) United Bank of India- Refinance to GUVNL 16500.00 Term Loan is secured by hypothecation 1 mortgage charge on assets ofSubstation along with associated transmisslon lines covered under NavsariCircle.

. 22.) Vijaya Bank 10345.78 Term loan is secured by hypothecation 1 mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Amreli Circle, Anjar Circle, Gondal Circle, Mehsana Circle, NadiadCircle, Navsari Circle, Jambuva Circle, Junagadh Circle, Palanpur Circle,Surendranagar Circle, Bharuch Circle.

23.) Corporation Bank TL- I

24.) Bank of Baroda TL-II

25.) Bank of India Tl III

8924.02 Term Loan is secured by hypothecation 1 mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Anjar & Junagadh Circle.

3000.00 Term Loan is secured by hypothecation 1 mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Amreli Circle. Bharuch Circle, Gondal Circle, Himatnagar Circle,Jambuva Circle, Nadiad Circle.

3000.00 Term loan is secured by hypothecation 1 mortgage charge on assets ofSubstation along with associated transmission lines covered under variousCircles: Gondal Circle, Jambuva Circle, Jamnagar Circle, Junagadh Circle,Mehsana Circle, Nadiad Circle, Navsari Circle, Surendranagar Circle.

-26-.-)-ln-d-ia-~I5V·-er-s-e-as-·-Ba-n~k------------~-----=·----t-~8~.~5~0'~~~~--------~5~53~.~8~5t.S~e=c~u-re-d~a-ga~i~n-st~1s~t~h-y-p-o~th-e-c-a~tio-n--c~ha-r-g-e-o-n-t~h-e-a-s-s-et~s-o~f~D~h-ra-n~g~a-d~h~ra~a=n~d'

Surendranagar O&M Division of PGVCL.

27.) Indian Overseas Bank 482.49 Secured against 1st hypothecation charge on the assets of Vijapur, Mehsanaand Chhatral TR Divisions.

28.) Union Bank of India 263.20 Secured against tst hypothecation charge on the assets of Soja, Dhansuraand Chhatral TR Divisions.

29.) Allahabad Bank 789.60 Secured against 1st hypothecation charge on the assets of Sabarmati,Gandhinagar and Bavla O&M Division of UGVCL.

31.) Dena Bank

1833.84 Secured against extension hypothecation charge on the assets of Godhraand Baroda O&M Division of MGVCL.

30.) Canara Bank

32.) Jnterest Accrued and Due

323.71 Secured against 1st hypothecation charge on the assets of Amreli. Dhasaand VartejTR Divisions.

1926.99 Interest is secured against various commercial loans mentioned above.

2. Secured Loan from PFC is secured against hypothecation 1 mortgage charge on upcoming assets of various sub-stations along with associated lines forwhich the term loan was sanctioned. Details of Securitv olven is as below:

Balance Name of Projects CoveredRate of

outstanding asName of Bank Interest as on

31.3.2012on 31.3.2012

(In Rs. Lakhs)

1.) PFC 11.6% 8115.66 Term Loan is secured by hypothecation 1 mortgage charge on assets of(Wt.Avg Rate) Substation (220KV Mangrol--Mobha line, 220 KV Taper S/S, Sotad S/S, 220

KV Kukma S/S and assets of Bharuch Transmission circle' along withassociated transmission lines.

3. Loan from REC is secured against hypothecation charge on upcoming assets of various sub-stations along with associated lines for which the term loanwas sanctioned. Details of Security given is as below:

Balance Name of Projects CoveredRate of

outstanding asName of Bank Interest as on

31.3.2012on 31.3.2012 (In

Rs. lakhs)

1.) REC 11.49% 10272.5 Term Loan is secured by hypothecation charge on assets of Substation along0Nt. Avg Rate) with associated transmission lines covered under Gondal, Mehsana and

Bharuch Circle.

4. Loans from Working Capital includes 9.25% unsecured loan from GSFS and has outstanding balance of Rs. 29000 Lakhs as on 31-Mar-2012. It alsoincludes Cash Credit facility Secured against 1st hypothecation charge in favour of UCO bank Consortium on the stocks and book debts ranking paripasuand has outstanding balance of Rs. 3698.66 Lakhs.

5. Public Bonds guaranteed by Government of Gujarat are considered as unsecured Loan.6. Unsecured PFC Loan is guaranteed by Government of Gujarat amounting to Rs. 908.54 Lakhs as on 31st March 2012. Interest % is ranging from 9% to12.50%.

7. Loan from Others includes 9.25% unsecured loans from GSFS amounting to Rs. 139254.51 Lakhs as on 31-Mar-2012.

8. Bill Discounting facility are secured under the Deferred Payment Guarantees issued by Consortium member banks. Interest % is ranging from 8.50% to11.80%.

Maturity Profile of Secured Term Loans are as set out below:

Loans From Commercial BanksBill Discounting under DPG

Loan from PFC

Loans from REC.

Maturity Profile (Rs. In Lakhs)1-2 Years 2-3 Years 3-4 Years Beyond 4 Years26273.59 39523.59 48323.39 152029.26

4187.27 1704.72 24.19 0.00

944.31 982.56 982.56 4386.311141.39 1141.39 1141.39 5706.94

Maturity Profile (Rs. In Lakhs)1-2 Years 2-3 Years 3-4 Years Beyond 4 Years

432.52 576.69 0.00 0.00 "799.28 1065.71 000 0.00

28.13 0.00 0.00 0.00945.46 0.00 0.00 0.00

0.00 2584.72· 2584.72 3446.30

0.00 410.83 410.83 547.78

0.00 1145.37 1145.37 1527.16

Maturity Profile (Rs. In Lakhs)

1-2 Years 2-3 years 3-4 Years Beyond 4 Years

174.88 136.63 136.63 170.79

51333.33 36833.34 4000.00 0.00

570.05 570.05 570.05 5100.09

10000.00 0.00 0.00 0.00

Maturity profile and Rate of interest of Bonds are as set out below:

Rate of Interest11.75% Series-VI Option-III

7.50% Series-VI Option- III

11.25% Series-VII option-II

11.50% Series-VII option-III

8.95% Series-VIII

8% Series-IX

8% Series-.X

Maturity Profile of Unsecured Term Loans are as set out below:

Loan from Power Finance CorporationLoan from Others

ADS Prog. & Proj. Loan

Loans for working Capital

6 OTHER LONG-TERM LIABILITIES'

PARTICULARS [Amount in Lakhs]


Deposits & Retentions from Supp. & Contractors. 154.44 155.18

Retention Money from Suppliers I Contractor 72.88 536.02

Deposits for Electrification & Service Conn. etc. 2206.12 2256.45

TOTAL 2433.44 2947.65

7 LONG TERM PROVISIONS'-PARTICULARS [Amount in Lakhs]

As at As at31st March, 2012 31 st March 2011

Provision for Leave Encashment 15177.48 13328.2?

Welfare Scheme 3284.39 3029.27

TOTAL 18461.87 16357.55

,-,~

8

CURRENT LIABILITIESs~HUK I-I t:KM I:SUKKUVYINu;:':

PARTICULARS [Amount In Lakhs)

As at As at

31st March. 2012 31st March 2011

SECURED LOANS FROM BANKS -Loans for Working capital 3698.66 18230.98TOTAL 3698.66 18230.98 ;Note: Please refer Note No.5 for securities given for Secured Loans.

9 TRADE PAYABLES.. - .__ . . ._---PARTICULARS (Amount In Lakhs]

As at As at31st Marc.h, 2012 31st March 2011

Liability for Capital Supplies I Works. 20655.65 40294.25

Liability for 0 8. M Supplies I Works. 678.04 457.44

TOTAL 21333.69 40751.69

10 OTHER CURRENT LIABILITIESPARTICULARS [Amount In Lakhs)

As at As at31st March 2012 31st March 2011

CURRENT MATURITIES OF LONG TERM DEBTS

SECURED LOANS

FROM BANKSLoans From Commercial Banks 26447.21 23308.99

Bill Discounting under DPG 956.30 1495.72

FROM OTHER PARTIES

Loan from PFC 819.93 710,06

Loans .from REC 1141.39 1141.39

Bill Discounting under DPG,

3261.56 3269.43-UNSECURED LOANS

(a) Public Bonds 3268.66 2584.00

(b) Loan from Other Parties

Loan from·PFC 289.62 322.30Loans for Working capital 19000.00 0.00Loan from Others 47087.84 50853.82

ADB Prog. & Proj. Loan 564.72 558.00Interest Accrued But Not Due on Borrowings 4270.11 3530.84Current Year's Taxes Payable (Net of Advance Tax) 807.55 218.97

Other Inter-company payables to companies under the same managementiGUVNL 12565.55 36418.01

ii Gujarat Energy Training & Research Institute 14.51 98.33

Other Llablhtiea 17411.23 1269326

liability for expenses. 6182.17 6253.93

Deposits for Electrification & Service Conn. etc. 28211.71 26016.29E.M.D From Suppliers I Contractors 3010.51 3350.46

Deposits & Retentions from Supp. & Contractors. 2587.36 2318.53Retention Money from Suppliers I Contractor 21807.15 12647.72

other Deposits 0.00 7.66

Deposits from Others 945.48 76670TOTAL 200650.56 188564.41

Note: Please refer Note No.5 for securities given for Secured Loans.

11 SHORT·TERM PROVISIONS

PARTICULARS [Amount in Lakhs)

As at As at31st March 2012 31st March 2011

(a) PROVISIONS FOR EMPLOYEE BENEFITSStaff related liablilties and Provisions 47.77 60.99Welfare Schemes 486.56 501.60

Provision for Leave Encashment 699.26 718.86(b) OTHERS

Provision for Wealth Tax (Net of Advance Tax) 0.54 0.66TOTAL 1234.13 1282.11-

~)

.»Pr.:l~",<>.0r- ~--. ;g~'i r "''\0'( \~ ,,":1r \'~ 1 ~: ' :! ) Po.. , )"cj •t ';.. ~

~\~ \. /..¢.'t

....--- 11.

~

~GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED

12. Fixed Assets [Rupees in Lakh]

168187.95

Provision for Depreciation Net B 10 c kGROSSBLOCKSr.No.

TANGIBLEASSETS

0.00

Balance as at31st Mar,

2012


2012

Balance as at31st March,

2011


2012


2011


2011

Particulars AdjustmentsAdditions " Deductions

Adjustments!DeductionsAdditions

OWNEDASSETS1 ILand& Landrights I 12904.961 6786.321 2240.651 17450.631 0.001 0.001 0.001 0.001 17450.631 12904.96

2 IBuildings I 39610.271 11376.311 4578.721 46407.861 5713.361 1551.381 -31.491 7296.231 39111.631 33896.91

3 Hydraulicworks 1923.02 255.71 228~A8 586.71 -0.74 694.13 1590.35 1336.31

4 Other Civil works 25451.77 2221.24 31854.70 3225.61 -4.32 4199.74 27654.95 22226.16

5 IPlant & Machinery I 417143.041 99118.781 27141.381 489120A51 113313A81 23921.511 1358.241 135876.751 353243.701 303829.56

6 [Lines& CableNet Works I 308751.121 75166.401 24159.751 359757.781 70104.661 18444A81 84.68 I 88464.461 271293.311 238646.46

7 IVehicies I 572.121 22.971 31.671 563A21 414.691 32.661 21A51 425.901 137.511 157.42

8 [Purnlture& Fixtures I 2273.061 219.701 (19.12,1 251i.871 795.251 171.431 -1.541 968.221 1543.651 1477.81

9 Office Equipments 2367.86 -49.27 2527~ 902.141 337.641 0.131 1239.651 1287.921 1465.711

10 Cap.exp.resulttnqtn assets notbelonging to the Company

109.86 120.890.00 208.82 87.93 11.03 0.00 98.96208.82 0.00

Sub-Total 713423.53 616062.20811206.041 202042.26 60560.73 952687.58 195143.841 45546.62 1426.41 239264.0411

12 ILEASEDASSETS

1271.09 0.00 1719.89 29.551 77.33 1613.01 419.2513 I Leasehold Land 448.80 0.00 106.88

14 I Sub-Total" 0.00 1613.01 419.25448.80 1271.09 1719.89 29.551 77.33 0.00 106.88

715036.541 616481.45811654.841 203313.35 60560.731 954407,471

195173.381 45623.95 1426.41I I

0.00

239370.92

29.51

Total· A15161i-I-nta-n-g-ib-leAssets 29.51 0.00 0.000.00 0.00 29.51 0.00 29.51

Total-B 0.00 29.51 0.00 29'51 0.00 29.51 0.00 29.51 0.00 0.0017

17 I Total (A+B)I 811654.841 203342.86 715036.54 616481.4560560.731 954436.98 195173.381 45653.47 1426.41 239400.44

lA,s per Balance Sheet as at I 676916.381 156524.6419 'l1<t M••rrh. 201~

616481.45 518478.0421786.181 811654.84 158438.331 37020.96 285.91 195173.38

20 [Capital Work in Proqress 233889.62

21 IIntangible Assets under Development 0.00

Note Also refer Note No.34

13 NON CURRENT INVESTMENT

PARTICULARS [Amount in Lakhs}


investment in Shares (At Cost)>

Un Quoted, Non Trade400 (P.Y. 400) Equity Shares of Rs. 25 each. in Kalupur Commercial Co-Operative Bank LTD., fully paid up 0.10 0.10

TOTAL 0.10 0.10

14 LONG TERM LOANS AND ADVANCES :PARTICULARS [Amount In Lakhs]


(Unsecured and Considered Good)

Advances to Suppliers I Contractors (Capital). 25.70 24.03

Loans & Advances to staff. 2083.94 1199.51

AmI. recoverable from emp.l ex-employees. 70.87 59.89

Other Income accrued & due. 0.00 0.24

Income accrued but not due. 1279.23 1086.37

TOTAL 3459.74 2370.04

15 OTHER NON CURRENT ASSETSPARTICULARS [Amount in lakhs]

As at As at

31 st March, 2012 31st March 2011

Deposits with Telephone Authorities 2.90 3.02

TOTAL 2.90 3.02. - - -

CURRENT ASSETS

16 CURRENT INVESTMENTS

PARTICULARS [Amount in lakhs]


- -TOTAL -

11 INVENTORIES

PARTICULARS [Amount In Lakhs]


STORES, SPARES & LOOSE TOOLS;

Stock of materials at Construction Stores 13694.75 12635.09

Stock of materials at Other Stores. 4862.48 4387.22

Materials pending Inspection. 599.18 142.07

Materials in Transit. 169.75 67.78

Other Materials Accounts. 616.25 624.61

TOTAL 19942.41 17856.77

Also refer Slgmficant Accounting Policy No 6 for Inventory Policy.

As at As at31st March. 2012 31st March 2011

18 TRADE RECEIVABLES:

PARTICULARS (Amount In Lakhs]

(Unsecured and Considered Good)Trade Receivables for Trans. of Power.

Trade Receivables for Inter State Trans. of Power.

Trade Receivables for Misc. Receipts from Cons.

Receivabie . Other Account.

TOTAL

Out of above:

(1) Debts outstanding for a period exceeding six months from the date they are due

(2) Other Debts

37820.26 37622.04

0.00 65.84797.37 717.00

856.19 700.60 '.39473.82 39105.48

36694.94 31538.532778.88 7566.95

39473.82 39105.48TOTAL

19 CASH & BANK BALANCES

PARTICULARS [Amount In lakhs]


(a) Cash & Cash Equivalent:

Cash & Balance with BanksBalance with Scheduled Banks. 1766.71 1368.61

Cheques on Hand 11.92 0.02Remittance in Transit. 476.59 87.80Cash on Hand 3.30 3.31

Postage Stamp & Stamped Agreements on Hand 1.46 1.22

(b~ Other Bank Balances :Fixed Deposits with Banks - - 1.25 1.25

TOTAL 2261.;'3 1462.21

20 SHORT TERM LOANS & ADVANCES'

PARTICULARS [Amount in LakhsJ

As at As at31st March, 2012 3151 March 2011

(Unsecured and considered Good)

Advances recoverable in Cash or in kind for the value to be received.(1) Advance to Parties

Advances for O&M Supplies I Works. 195.89 213.86

Loans & Advances . Others. 46.85 12.42

(2) Loans & Advances to Staff 683.36 601.18

(3) Income Tax

Advance Income Tax (Net of Provisions) 2646.59 761.89

Advance Fringe Benefit Tax (Net of Provisions) 183.63 35.55

TOTAL 3756.32 1624.90

21 OTt-IFR CURRENT ASSETS'

~CULARS [Amount In Lakhs]


Amount recoverable from Employees I Ex-Employees. 60.43 79.50

Other Claims & Receivables. 4365.22 2947.00

Deposits. 1193.38 1023.76

Other Income accrued & due. 9.58 24.93

Income accrued but not due. 25.17 54.14

Asset Not in Use 645.49 688.42

TOTAL 6299.27 4817.75

Note . Asset Not In Use are shown as WnUen down value

--

22 REVENUE FROM OPERATION

PARTICULARS [Amount in Lakhs}As at As at

31st March, 2012 31st March 2011

Sale of Services

Revenue rrorn Transmission Charges 152051.49 121267.82

Parallel Operation Charge 502.93 79.61SLOe Fees & Charges 1762.19 1733.27

Olt!er Operating RevenueMise Charges from Consumers 506.50 574.69Income towards Govt. Grantsl Subsidies towards cost of capital assets (Deferred amount) 12668.89 9048.27

Income from Trading -Stores. Scrap etc. 528.97 660.86Penalties Received from Suppliers &'Contractors 5432.91 3801.26Revenue Subsidies and Grants 19.22 40.63Mise Revenue 2544.04 4527.00

TOTAL 176217.14 141753.41

23 OTHER INCOME·

PARTICULARS [Amount in Lakhs]As at As at

31st March, 2012 3fst March 2011Interest Income

Interest on Staff Loans and Advances. 247.57 152.7iInterest on Advances to Others. 2.04 0.45

Interest income from other advances 253.72

Total Interest Income 249.61 406.94

Dlvldond Income - 0.00- -- - . - - --

Other Non Operating Income

Other Miscellaneous Receipts. 1283.58 901.79

Total Non Operating Income 1283.58 901.79

Grand Total 1533,19 1308.73

24 EMPLOYEE BENEFITS EXPENSE

PARTICULARS (Amount In Lakhs]


Salaries. 19961.58 19501.29

Overtime. 1225.23 1078.20

Dearness allowance & Dearness Pay. 11057.7 8270.62

Other allowances. 575Q.63 5424.62

Bonus. 22.55 21.45

Medical Expenses Reimbursement. 1059.71 854.85

Leave Travel Assistance. 118.69 28.64

Earned leave encashment. 186.62 8239

Waiver of O/s.HBA Loan & interest. 10.86 5.26

Death & accident compensation. 3.74 2.32

Payment under Workmen's Camp. Act. 25.96 3.42

Interim relief to staff. 0.03 0.00

Board's contri. Bombay Labour welfare Act: 1.21 1.38

EOU - Administration charges. 0.43 0.45

Staff Welfare Expenses. 444.11 751.62

Terminal Benefits. 9084.49 9191.21

TOTAL 48953.54 45,217.72

Employee Costs Capitalised. 18288.22 14959.54

TOTAL EMPLOYEE BENEFIT EXPENSES 30665.32 30258.18

25 FINANCIAL COSTS-

PARTICULARS [Amount in lakhs]

As at As at31 st March. 201 Z 31st March 2011

INTEREST EXPENSEInl. on State Government loans 769.78 574.37

Int. on Bonds 2203.18 2555.30

Int. on DPG from Banks 2307.03 2605.73

Int. on REC Loans 1298.94 1325.41

Interest on loan & Borrowings 41433.48 22206.59

Int. on Loans from Power Finance Corporation 1019.54 981.41

Int. on Loans from IGtG! 0.00 0.67

Interest on Staff Welfare Funds/Schemes 247.16 230.82

Int. on Borrowing for Working Capital. 5711.38 4253.80Discount to Cons. for Timely Payment of Bills 3090.73 2427.01

Discount on Bills-Banks/Fin. Inst. 0.17 0.62Total Interest Expenses 58081.39 37161.73

OTHER BORROWING COSTSCost of raising finance 42.86 74.06

Service Charges I Management fees 0.77 1.60

Other Charges 20.46 53.56Guarantee Fees 262.93 283.93

Banking Cash Transaction Tax 0.00 0.08Total BorrowinQ Cost 327.02 413.23

TOTAL 58408.41 37574.96:....:.;.~: 'ntcrest & -rlnance cnarces C.::.pit"it, ~u . 8999.33 O'::l4L.'I(\

GRAND TOTAL 49409.08 31632.78

\

26 DEPRECIATION AND AMORTZATION EXPNSE-

PARTICULARS [Amount in Lakhs]


Amortisation of Lease hold Land 45.43 5.10

Depreciation on Buildings 1551.38 1227,19

Depreciation on Hydraulic Works 106.68 98.39

Depreciation on Other Civil Works 969.81 780.35

Depreciation on Plant & Machineries 23921.51 20552.79Depreciation on lines & Cable Net works 18444.48 13762.98

Depreciation on Vehides 32.66 46.91

Depreciation on Furniture & Fixtures 171.43 164.31

Depreciation on Office Equipments 378.18 345.91

Deoreciation on Small & Low Value Items 0.00 0,49

TOTAL 45621.56 36984.42

Less: Oeoreciation and re~ted costs cacltausec. 61.20 61.82

TOTAL DEPRECIATION AND AMORTISATION EXP. 45560.36 36922.60

27 OTHER EXPENSES :PARTICULARS [Amount in Lakhs]

As at As at31 st March. 2012 31st March 2011

REPAIRS & MAINTENANCE EXPENSE

Repairs and Maintenance to ..•

Plant and Machinery. 12702.25 9990.24

Buildings. 491.33 269.72

Civil Works. 808.04 684.83Hydraulic Works. 0.07 0.00lines, Cable Network.' etc. 1619.55 1475.93Vehicles. 75.85 49.11Furniture. Pbdcres. 58.50 47.85

Office Eouioments. 667.59 732.33TOTAL 16423.18 13250.01

Reoafrs and Maintenance exoense caoitalised. 13.36 34.29TOTAL REPAIR & MAINTENANCE EXPENSES 16409.82 13215.72

ADMINISTARTIVE & GENERAL EXPENSE

Lease premium on Operating Lease 0.08 0.14

Rent including Lease rentals 52.74 18.74

Rates and Taxes. 582.00 302.89

Penalties on Statutory Levies 0.33 2.66Insurance. 13.43 10.69Testing Charges 18.33 19.51

Annual Inspection & Installation Checking fees to Coil. of ED 163.46 151.63

Telephone. Postage, Telegram, Telex. Mobile Charges. 313.53 309.79Fee to Auditors for other works. 1.13 0.93Legal Charges. 56.81 60.16

AUdit ~es. - - - - 5.49 4.96

Consultancy Charges. 123.44 141.13

Technical Fees. 15.90 7.41

Other Professional fees and expenses. 272.43 153.14

Conveyance & Travel. 2148.46 1787.57

Directors' Fees 0.29 0.16Fees & Subscription. Books & Penodtcais.. 18.33 13.99

Printing & Stationery, Xerox copy Charges 187.93 184.18

Expenses on Computer Billing & EOP Charges. 90.32 94.57

Acvertlsements (Other than purchase related). 41.22 41.57

Contributions and Charities. 338.49 68.85

Electricity Charges. 546.13 458.96

Water Charges. 86.30 87.19

Maintenance to Tree Plantations. 1.44 1.00

Entertainment Expense. 9.37 5.46

Expenses on Meetings & Conferences. 36.53 98.50

Guest House Expenses. 18.72 1.29

Miscellaneous Expenses. 1365.65 1114.45

Miscellaneous Losses & Write-off: __ 14.79 63.57

Net Gain I Loss on sale of Fixed Assets 509.61 296.56Freight Expense. 14.99 40.54

Other Purchase Related Expenses. 281.10 206.55

Rev. Stamps on Receipts issued by the Board. 0.07 0.04

Expenditure on Traintno to Staff. 143.30 313.96

TOTAL 7472.14 6062.76

Less: Administration & General Exoenses cacnausec. 2900.66 2121.23

TOTAL ADMIN & GENERAL EXPENSES 4571.48 3941.53

GRAND TOTAL 20981.30 17157.25

28 EXCEPTIONAL ITEMS

PARTICULARS [Amount in lakhs)

As at As at

31st March, 2012 31 st March 2011

0.00 0.00TOTAL 0.00 0.00

29 PRIOR PERIOD ITEMSPARTICULARS [Amount in lakhs]

·As at As at31st March, 2012 31st March 2011

Income relating to previous years ...

Excess provision for depreciation. 481.29 167.34

Excess provision for interest & finance charges. 21.64 0.14

Other excess provision. 34.39 23.83Other income. 0.74 1.47Sub Total 538.06 192.78

Prior period expenses 1 losses ...

Employee costs. 38.48 3.97Depreciatio!' under provided. 368.27 598.85Interest & other finance charges. 0.86 6.55

Administration expenses. 0.00 52.12Other short provision. 0.18 48.81 .

Other aotustments. 0.22 0.55Sub Total 408.01 710.85

TOTAL ·130.05 518.07

30 TAX EXPEN<>:'E. - - . .. .PARTICULARS [Amount in lakhs]


CURRENT TAX

Provision for Income Tax 6323.64 5515.69

TOTAL 6323.64 5515.69

(31) Contingent liabilities not provided for( Rs. in lakhs]

As at 31s1 MarchContingent liabilities in respect of

2011-12 201()-2011iUnexpired Bank Guarantees issued by Banks Nil NilLetters of Credit issued by Banks Nil Nil) Sales tax demand in Appeal I dispute Nil Nil

") Income tax demand in Appeall dispute (not provided for) 970.49 626.47'Refer Note No. 58)) Service Tax demand (excluding interest) in Appeal I 35.40 Nil

dispute (not provided for) (Refer Note No. 58)) Bill discounted with Bank Nil Nil

dl Claims against company not acknowledge as debt. 2904.73 2854.86

(32) Estimated amount of contracts remaining to be executed on Capital Account and not provided for(Net of Advances) is Rs. 56855.631akhs (P.Y. Rs. 89930.77lakhs).

(33) Managerial Remuneration{Rs. in lakhs\

For the period ended 31st MarchParticulars

2011·2012 201()-2011Managerial Remuneration paid during the year 34.51 32.00Estimated monetary value of benefits in cash or in kind 1.00 1.00Total 35.51 33.00

(34) Auditor's Remuneration:

(i) Statutory Auditor(Rs. in Iakhs)

For the period ended 31st MarchParticulars

2011·2012 201()-2011Audit 4.50 4.50Certifications 0.75 NilOther Services: Taxation Matter Nil NilOthers 0.50 0.30Total ( Exclud irtz of Service Tax) 5.75 4.80

(ii) Cost Auditor( Rs. in lakhs}

ParticularsFor the period ended 31$t March

2011·2012 201!l-2011Audit 0.48 0.39Others Nil NilTotal (Excluding of Service Tax) 0.48 0.39

(35) Fixed Assets and Depreciation

(i)Consequent upon unbundling of business of GEB, various lands and buildings of groupcompanies are shared / used by companies other than the owners. User charges thereof are notrecovered or provided, in absence of any mechanism for its determination and thus same cannot be quantified.

(ii)The company has received the gross fixed assets as well as accumulated depreciation fromerstwhile GEB vide the notification by government. Accordingly the opening net block of allfixed assets has been restated as on 31.03.2005. Further the depreciation has been accountedfor subsequent years as per the depreci~ati~'ojlllo~~;;'"

(j~~~:!..Ift.tq~rr """I <11

4( '\1jlit ( "~i;:::~

u.. rea r.•..~ •.~,

As per Para 14 of Accounting Standard -]0" Accounting for Fixed Assets" an item of fixed assetthat has been retired from its active use and is held for disposal is to be stated at the lower ofNet Book Value or Net Realizable Value (NRV).However, the Company has not determined theNRV for assets retired from active use as the management is of the opinion that the NRV of thesame is higher than the Net Book Value due to very old assets and upward trend in scrap rates.As a result of this, company has not recognized any expected loss, if any, in the Profit and LossAccount. Discarded assets are treated as 'Assets not in use' on and from the date of approval bycompetent authority.

(36) The following accounts are subject to reconciliation and adjustment, if any.a) 42.100 - Liability for supply of materialsb) 47.311- HT service connection depositsc) 46.921- Deposit for job workd) 46.941- Expense on execution of job work

(37) Capital Work In Progress

(i) The company does not provide GEC and HOSC on amount of Rs. 1722.69Lakhs (previous yearRs. 1639.02Iakhs) expenditure recorded under the head unbilled capital work in progress.

(ii) The rates of HOSe have been fixed at 9% and 15% for construction division and transmissiondivision respectively which are loaded on the cost of Material and labour incurred during theyear.

(iii) In case of used transformers withdrawn from fixed assets and are being used in capital projects,the same are shown as CWIP at Net Value and accordingly General Establishment Charges(GEC)and Head Office Supervision Charges (HOSC)for the year are allocated on it.

(iii) Management has issued circularized instructions to load borrowing costs @ 6.234% to the valueof opening CWIP and net additions during the year. The circles and divisional offices are alsoinstructed not to load borrowing costs in cases where the works have been suspended for oneyear or ~~re as of 31/03!2012. Such loa~in.&~ subject to adjustments if any.

(38) Compensation for usage of Inter Company Assets:Consequent upon unbundling of business of erstwhile GEB, various assets including lands andbuildings belonging to the companies are used by Holding Company / Other fellow subsidiarycompanies. Common expenses for maintenance / usage of such assets have been apportioned anddebited to Holding Company / other fellow subsidiary companies on reasonable basis. However,for such other un-identifiable expenses or income, no provision has been made for any suchcharges receivable or payable to or by the company.

(39) Provisions(i) Employee Cost:

Employees of erstwhile GEB were transferred under the Scheme with complete benefit ofcontinuation of service without break and on same terms and conditions as was prevailing on theeffective date of transfer. The employee costs in respect of the transferred employees have beenaccordingly accounted.

(ii) Leave encashment and Gratuity :The company has adopted policy...of accounting liability for leave encashment on the basis ofactuarial valuation by Life Insurance Corporation of India in accordance with AS 15 (Revised)'Employee Benefits'. The actuary determined past service cost arising on the introduction ofretirement benefit of Leave encashment for its existing employees as on 3]st March 2012. Liabilityfor the current year of Rs. 1829.59lakhs (Rs. 1697.16lakhs) has been charged to Profit and LossAccount.

Gratuity liability has also been worked out on actual rate basis by the Life Insurance Corporationof India as per AS 15 (Revised) - "Employee Benefits".The disclosure of Leave Encashment and Gratuity are made as under:

(Rs. In lakhs]

Leave Encashment GratuitvParticulars 2011-12 20l(}·11 2011-12 2010-11

Amounts recognized in the balance sheet

Present value of obligation 15876.73 14047.13 23092.75 20954.31Fair Value of Plan Assets NIL NIL 11911.76 9552.43-Unrecognized past service cost NIL NIL 0.00 0.00Net Liabilitv in the Balance Sheet 15876.73 14047.13 11180.99 11401.88

Cost for the period

Current Service Cost 208.56 228.98 941.59 886.63Interest on obligation 1123.77 988.00 1676.35 1441.86

Expected return on plan assets NIL NIL (977.86) (754.77)

Net Actuarial (Gains) / Losses recognised in thevear 1403.47 1039.93 1167.62 1896.08Past Service Cost NIL NIL NIL NIL

Losses / (Gains) on Curtailments and Settlements NIL NIL NIL NIL

Expenses recognised in the statement of Profit &Loss 2735.80 2256.91 2807.70 346.?~Change in Benefit Obl igations

Opening defined benefit obligation 14047.13 12349.97 20954.31 18023.30Prior period adiustmer.ts c- - ·j":lt. - NIL NIL NILCurrent Service Cost 208.56 228.98 941.59 886.63Past Service Cost NIL NIL NIL NILInterest on obligation 1123.77 988 1676.35 144186Actuarial (Gains) / Losses 1403.47 1039.93 1065.64 1854.58

Benefits paid (906.20) (559.75) (1545.14) (1"52.05)

Closinz defined benefit obli aation 15876.73 14047.13 23092.75 20954.31

Changes in Plan Assets

Ooeninz fair value of Plan Assets NIL NIL 9552.43 7058.95Expected return on Plan Assets NIL NIL 977.86 754.77

Actuarial Gains / (Losses) NIL NIL {104.2Si (:\7.45)

Employers Contributions NIL NIL 3034.95 3028.21

Assets acquired in an amalgamation in the natu~of purchase NIL NIL NIL NIL

Exchange differences on foreizn plans NIL NIL NIL NILBenefits paid NIL NIL (1545.14) Cl252.0S"}

Benefits paid earlier credited to fund (4.06)

Closing fair value of Plan Assets NIL NIL 11911.76 9552.43

Principal Acturial Assumptions

Rate of Discounting 8% 8% 8% 8%

Expected Return on Plan Assets - - 9.50% 9.50%

Rate of Increase in Salaries 5% 5% 5% 5%

Attrition Rate ~ 0 3%tol% 3% to 1% 3%tol%

Iil'~~~~. "Sr,f ""'\-.~~

'4/ .. '\:t:( "'d'),~n,\\" " :,:C-.,c, ( . "-.' ,~- '"*c;.\~./'l

:qq"",-,- ~~'qarl'> , f:. ;. q .--"-...~"""

(40) Balances of group companies are reconciled and the confirmation of the balances has beenobtained from the respective company.

(41) In the opinion of the management the realizable value of Current Assets Loans and Advances inthe ordinary course of business is not less than the value at which they are stated in the books ofaccounts.

(42) Letter of confirmation from debtors and parties are not issued and hence the balances of debtorsand Creditors for supply of materials and expenses are subject to adjustments if any onreconciliation / settlement of respective accounts. However Balances of debtors and creditorsgenerally stand reconciled based on subsequent realizations and payments.

(43) Borrowing CostAs per AS 16 "Borrowing Cost" Borrowing costs that are attributable to the acquisition constructionor production of qualifying assets are capitalized as part of such assets. However it is not possible toarrive at cost to the company to be charged to qualifying asset and hence has adopted the averagerate of borrowing to its Holding Company which has provided funds to the company. Thetreatment given by the company does not meet the requirement of AS 16 in to-to and the effect ofwhich is not quantifiable.The amount of Borrowing Cost capitalized during the year amounts to Rs. 9002.56 Iakhs (p.Y. Rs.5942.18 Iakhs}.

(44) Provision for Taxation

(i) Provision for current tax includes following:

(RS. in Iakhs)

Particulars For the period ended 31" March2011-2012 201{}-2011

Income tax (MAT) - . - - - ~~. ""OJI-c--c-. .Deferred tax cberge/fcredit) (net) Nil Nilwealth tax 0.42

~-(ii) In accordance with the AS 22 "Accounting for taxes on Income" issued by ICAI Com pan)'

has recognized Deferred Tax on the basis of "Income Approach". The Company has huge carried.forward losses and unabsorbed depreciation under the Income Tax Act. However as a matter ofprudence deferred tax assets for the year have been recognized to the extent of deferred taxliability. Hence the Net effect in the books of accounts is 'NrL'.

"Deferred Tax on the depreciation on the opening balances of the assets vested by theGovernment of Gujarat for the financial year 2005-06 under various notifications andRestructuring Plan have not been recognized on the basis of not considering the limingdifference. Further consequential difference between the amount of depreciation for accountingpurpose and tax purpose in respect of such assets in subsequent years would also not to beconsidered as timing difference".

The Deferred tax liability is worked out as under:( R5. in lakhsl

As at 31s1 March'2012 As at 31st March'20llParticulars Deferred Tax Deferred Deferred Tax Deferred Tax

Asset Tax Asset LiabilityAmount Liability Amount Amount

AmountDifference in Depreciation -- 6500.25 - 8290.38

Provision for Leave Encashment 565.34 -- 524.42 ---Provision for Gratuity -- --- --- ---Preliminary Expenses -- - - --Total Deferred Tax AssetJ{Uability) 565.34 6500.25 524.42 8290.38

Net Deferred Tax Asset /(Liabilities) (5934.91) -- (7765.96) ---Carried Forward Unabsorbed Losses 2431.71 --- 10661.50 ---Carried Forward Unabsorbed Depreciation 18667.17 -- 18667.17 --Carried Forward Deferred Tax Asset 21098.87 - 29328.67 --Set off against C/f Deferred Tax Asset 5934.91 -- 7765.96 ---

Net Carried Forward Deferred Tax Assets 15163.97 --- 21562.71 ---Net Deferred Tax Asset/(Liability) for the year - -- - --

(45) Detailed information of total outstanding dues to Micro Small & Medium enterprises have beenobtained and required under the Micro Small & Medium Enterprises Development Act 2006, are asfollows.

Particulars Amount (Rs. in lakhs)

Total outstanding as Of!3~1 March 12 Nil -Outstanding for more than 30 days NilInterest paid fpayable Nil

(46) Segment Information

The company is principally engaged in the business of transmission of electricity and ancillaryactivity. Accordingly there are no reportable segments as per Accounting Standard 17.

(47) Related Party Disclosures

As per Para 9 of AS 18 on "Related Party Disclosure" no disclosure is required in the financialstatements as regards related party relationships with other state-controlled enterprises andtransactions with such enterprises.

(48) Assets charged for the security by G.E.BAs per the legal opinion of the counsel the transferee company (GETCO) which has acquired theproperty on which ·the charge is already created by erstwhile GEB is required to register chargesunder the provisions of the Companies Act 1956. Due to the common funds for all the operations oferstwhile GEB funds were raised against the charge overall its assets. However the amount ofsecured loans of erstwhile GEB which are secured against the separate properties transferred toeach transferee company has not yet been identified. CETCO therefore has not registered the chargeon these properties with the. registrar of companies Gujarat.

(49) Secured and Unsecured Loans

(i) As per Clause 3(2) of the Gujarat Electricily Industrial (Reorganization & Regulation) Act andComprehensive Transfer Scheme 2003 if the assets of the undertaking transferred are subject tosecurity document in favour of third party (Lender) for any financial obligation or arrangementby Erstwhile CEB and the said loans are required to be apportioned to different transferees theCovt. may by order do so and on such apportionment the Security will be applicable to thatapportioned liabilities only by operation of Law.

(ii) The Govt. has in FRP notification apportioned total loans 01 Erstwhile GEB as Long Term LoansRs. 139292.45Iakhs and Short Term Loans Rs. 94333.00 lakhs. Further GUVNL has raised severalloans for common usage of transferee companies. Out of above, GUVNL has apportioned securedand unsecured loans to the Company, which are shown under grouping of Secured Loans andUnsecured Loans according to the security given.

(iii) The loans which were raised by Erstwhile GEB from Bonds, Banks, PFC REC Lie FinancialInstitutions and other Lenders against the Security of the assets relating to Generation,Transmission and Distribution activities and were used for common purposes are continued inthe Books of GEB / (now GUVNL) on behalf of all transferee companies and the same have beenapportioned under FRP Notification dated 3rd October,2006 based on their purpose and usageamongst all transferee companies and the same loans have been accounted by the Company as"Loans allocated from GUVNL - Lender Wise" in separate accounts. The repayments andinterest thereon are reimbursed by the Company to GUVNL.

(SO) Value of imports calculated on Cl.F. basis is Rs. Nil. (P.Y. Rs. Nil)

(51) Additional information pursuant to the provisions of paragraph 34 C 4D of part II of RevisedSchedule VI to the Companies Act 1956 is given to the extent possible in view of the nalure ofbusiness of the Company.

(52) Value of indigenous and imported raw materials spares and components consumed

-- ( Rs. in lakhsl.. For the period ended 31st March

Particulars --2011-2012 2010-2011

Indigenousi) Raw Materials Not ascertainable Not ascertainableii] Spares

iii) Components

Imported~-

i) Raw Materials Not ascertainable Not ascertainableii)-Spares

iii) Components---

(53) Expenditure in foreign currency(Rs. in lakhs)

For the period ended 31st MeUThParticulars ._-

2011-2012 2010-2011

Expenditure in foreign currency on account of Royaltyknow-how professional-consultancy fees interest and Nil Nilother matters.

(54) Earning in foreign currency - (Rs. in lakhs)For the period ended 31st March

Particulars2011-2012 2010-2011

Earning in foreign currency on account of export ofgoods on F.O.B. basis royalty know-how professional- Nil Nilconsultancy fees interest and oilier incomes. ---,-

(55) The previous year's figures have been recast / restated wherever necessary to confirm to thecurrent year's presentation.

(56) Amount receivable from the Sundry Debtors for wheeling charges includes an amount of Rs.36577.0Slakhs (P.Y. Rs. 36577.08Iakhs) which is under litigation in the courts of law. However theabove amount is considered to be good.

(57) Legal ownership (titles) of immovable properties

The immovable properties in respect of which the account balances have been transferred are heldin the name of GEB - erst. The procedure for the registration and/ or transfer in the name of theCompany has been initiated.

(58) (1) For Assessment Year 2008 - 2009 (F.Y. 2007 - 2008), The Income Tax Department has raised thedemand of Rs.1126.47 Lakhs towards Income Tax and Rs. 147.52 Lakhs towards the Fringe BenefitTax. As against the demand of Income Tax for the said year, the Company has paid Rs. 500 Lakhs-on 28th March, 2011. Further, the Company has filed appeal with Commissioner of Income Tax(Appeals) for Income Tax as well as Fringe Benefit Tax. As regards the demand of Income Tax forRs. 1126.47 Lakhs, the Company has preferred the appeal before Commissioner of Income Tax(Appeals) who partly upheld the appeal against which counter appeals have been preferred by theIncome Tax Department as well as GETCO with ITAT, Ahmadabad.

Thus as on 31st March 2012, there was a demand from the department of Rs. 626.47 Lakhs and Rs.147.52 Lakhs towards Income Tax and Fringe Benefit Tax respectively.

The appeal for Fringe Benefit Tax with Commissioner of Income Tax (Appeals) has been decidedagainst the Company after 31St March 2012, and now the Company has preferred second appealwith ITAT, Ahmadabad.

Consequent to the order giving effect to the Commissioner (Appeals)'s order, the income taxdemand stands revised to Rs. 538.28 Lakhs and ..Fringe Benefit Tax demand remains to Rs. 147.52Lakhs.

(2) For Assessment Year 2009 - 2010 (F.Y. 2008 - 09), The Income Tax Department has raised thedemand of Rs. 396.50 Lakhs towards Income Tax. As against the demand of Income Tax for thesaid year, the Company has paid Rs. 200 Lakhs on 15th March, 2012. Further, the Company hasfiled an appeal with Commissioner of Income Tax (Appeal) in the matter of income tax, which is

_ ..n"t yet finalized.

Thus, as on 31st March 2012, there was a demand from the department of Rs. 196.50 Lakhs towardsIncome Tax.

A refund of Rs. 175.47 Lakhs for the Assessment Year 2006 - 2007 has also been adjusted by theincome tax department against the said demand. Consequently, the income tax demand standsrevised to Rs. 21.03 Lakhs.

Provision of Income Tax for the above assessment years will be considered on finalization ofappeals.

(3) Service Tax - For the period October 2007 to March 2008, In case of Limbdi ConstructionDivision of Surendranagar Tr. Circle, Addl. Commissioner of Central Excise, Bhavnagar has raisedthe Service Tax demand of Rs. 35.40 Lakhs plus Interest for the aforesaid period. In this matter,company has filed an appeal with Commissioner (Appeal), Central Excise, Rajkot. Commissioner(Appeals), Central Excise, Rajkot had disposed off appeal against company. Aggrieved by theorder of Commissioner (Appeals), Company is in process of filing the appeal-with Custom, CentralExcise & Service Tax Appellate Tribunal (CESTAl).

(59) As per the recommendations of the Girish Pradhan committee and the directives of the RegulatoryCommission, GETCO has initiated steps for separation of State Load Dispatch Centre as a separatecompany. GETCO is awaiting the approval of the State Govt. for the same, based on which allactions will be taken.

(60) Government Grant, Subsidy and Consumer Contribution:All receipts of consumer's contributions, grants and subsidies received from IS\ April 2005 aretreated as deferred revenue and in absence of identification of grants with assets, considering theaverage useful life of assets 11.75% (10 % Previous Years) of the year end balance is transferred toProfit and Loss Statement.

(61) Share Application Money Pending Allotment:During the Year 2011-12, Share application money received from GUVNL amounting to Rs. 8420Lakhs, Terms & Condition, Number of shares proposed to be issued, amount of premium, theperiod of allotment, interest if any on refund amount is under consideration and will be decided bythe members in the General Meeting.

(62) Earnings Per Share:

Particulars 2011-2012 2010-2011Earnings (Profit After Tax & Before Extra-ordinary 24940.68 21057.57/Exceptional items (Rs. In Lakhs)No. of Equity Shares of Rs. 10 Each (Basic & Diluted) 511383340 494716674

Equity Shares Equity SharesEarnings Per Share{In Rs.) 4.88 4.26

During the Year 2011-12, company has received Rs. 8420 Lakhs towards share application money.As the number of shares to be allotted and the amount of share premium is under consideration, atthe time of calculating EPS these share~ are not considered and hence the basic and diluted EPS aresame.

As per our report of even date attachedFor Prakash Chandra Jain & Co.Chartered AccountantsFir ego No. 002438C

I '

For and on behalf of Board of DirectorsGujarat E,ergy Transmission Corporation Limited

b.~ ~(D.J.PANDIAN,IAS) ( S. K. NEGI)Chairman Managing Director

(B.C.SHAH)General Manager (F&A)

(N~A)Company Secretary

GUJARAT ENERGY TRANSMISSION CORPORATION LTO.

BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESSPROFILEI. Registration Details

Registration No. 36018 State Code 04

Company Identification No. U40100GJ1999SGC036018

Balance Sheet Date 31.03.2012

II. Capital Raised during the year (Amount Rs.in Thousands)

Public Issue NIL Right Issue NIL

Bonus Issue NIL Private Placement 166667

III. Position of Mobilization and Deployment of Funds (Amount Rs. in Thousands)

Total Liabilities 102412195 Total Assets 102412195

Sources of fundsPaid up Share Capital 5955833 Reserves ft Surplus 30101168

Secured Loans 32481790 Unsecured Loans 19745757Application of funds

Net Fixf'(f Assets(lncluding 9495-71-65 Investments 10Asset not in use ft CWIP)

Net Current Assets -15518399 Mise. Expenditure 0Accumulated Losses NIL

IV. Performance of Company (Amount Rs.in Thousands)

Turnover/Income 17775033 Total Expenditure 14648601Profit/Loss before Tax 3126432 Profit/Loss after Tax 2494068

Earning per Share in Rs. 4.88 Dividend rate % NIL

V. Generic Names of Three Principal Products/Services of Company

(as per monetary terms)Item Code No.(ITC Code) NA

Product Description Transmission of Energy

As per our report of even date attachedFor Prakash Chandra Jain & Co.Chartered AccountantsFi e . ~o.-O02438C

For and on behalf of Board of DirectorsGujarat Energy Transmission Corporation Ltd.

f

D,~(CA. Oi esh C. Jain)PartnerM. No. 041235

D.J.PANDIAN, IASChairman

S.K.NEGIManaging Director

~B.C.SHAHGeneral Manager (F&A)

~Company Secretary

Place: GandhinagarDate: 27-09-2012

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