NTPC Subsidary Annual Report 2016-17 PDF

A Maharatna Company
CONTENTS
• NTPC Electric Supply Company Limited........................................................... 02
• NTPC Vidyut Vyapar Nigam Limited.................................................................. 39
• Kanti Bijlee Utpadan Nigam Limited................................................................. 91
• Bhartiya Rail Bijlee Company Limited............................................................. 173
• Patratu Vidyut Utpadan Nigam Limited............................................................. 249
Contents
1
A Maharatna Company
NTPC ELECTRIC SUPPLY COMPANY LIMITED

(A wholly owned subsidiary of NTPC Limited)
Directors’ Report
To AUDITORS’ REPORT
Dear Members, The Comptroller & Auditor General of India (C&AG)
Your Directors have pleasure in presenting the Fifteenth appointed M/s. P.R.Kumar & Company, Chartered
Annual Report on the working of the Company for the Accountants as the Statutory Auditors of your Company for
financial year ended on 31st March 2017 together with the financial year 2016-17.
Audited Financial Statement, Auditors’ Report and Review There is no qualification, reservation or adverse remark or
by the Comptroller & Auditor General of India for the
disclaimer in the Auditors’ Report on financial statements of
reporting period.
the Company.
FINANCIAL RESULTS
In their report, the Statutory Auditors of your Company have
(` Lakh) drawn attention of the members to the use of the going
concern concept as brought out in Note 1, Accounting
2016-17 2015-16
Policies Part B read alongwith Note No.17 to the Notes
Total Revenue 0.30 140.48 to Financial Statements of the Company for the year. The
Total Expenses 16.48 4.37 Auditors have mentioned that the parent company has
Profit/(Loss) before Tax (16.18) 136.11 taken over all the assets and liabilities on 1st day of April
Tax expenses 1.94 23.28 2015, except Bank Balances, Advance Taxes and Income Tax
Provisions, at historical cost carried in the books of accounts
Profit/(Loss) after Tax (18.12) 112.83
on the date of transfer of such assets and liabilities of your
DIVIDEND Company and these conditions alongwith other matters
During the financial year 2016-17, Directors have not set forth in Note No. 17 indicate the material uncertainty
recommended any dividend. and that may cast significant doubt about your Company’s
OPERATIONAL REVIEW ability to continue as a Going Concern. The Auditors further
mention that however, the financial statements of your
Your Company has transferred and vested all its operations, Company have been prepared on a going concern basis for
with effect from April 1, 2015, to NTPC Limited, the holding the reasons stated in the said note.
company.
The shareholders of your Company in the Extra-Ordinary
Your Company was incorporated for the distribution General Meeting held on March 24, 2015, inter alia,
business and later started deposit and consultancy works. approved the proposal for transfer and vesting of all
The transfer and vesting of existing operations would enable operations of your Company together with all assets and
a focused business approach by the Company in the area liabilities relating to such operations to NTPC Limited, the
of distribution, the objective for which your Company was holding company, with effect from April 1, 2015. After
incorporated. obtaining aforesaid approval, your Company entered
Although currently your Company does not have any into an agreement with NTPC Limited to implement such
business operations in retail distribution, the same will be transfer. Accordingly, your Company does not have any
taken-up at an appropriate time when the opportunity operations w.e.f April 1, 2015. However, since all the assets
becomes visible. and liabilities were transferred to NTPC Limited at the same
values appearing in the books of the Company as on March
A detailed discussion on operations and performance for
31, 2015, all the assets and liabilities were reflected in the
the year is given in “Management Discussion and Analysis”,
same manner as done previously as a going concern, i.e., at
Annexure - I included as a separate section to this report.
their book values. Although your Company does not have
FIXED DEPOSITS any business operations in retail distribution, the same will
Your Company has not accepted any fixed deposit during be taken-up at an appropriate time when the opportunity
the financial year ended on 31st March 2017. becomes visible.
Subsidiary Company - NTPC Electric Supply Company Limited
2
A Maharatna Company
C&AG REVIEW from the services of NTPC Limited, Shri U. P. Pani (DIN:
The Comptroller and Auditor General (C&AG) of India, 03199828), has ceased to be the Director of your Company.
through letter dated July 20, 2017 have communicated that The Board of Directors, consequent upon nomination
based on the financial reporting by the Management and received from NTPC Limited, appointed Shri Saptarshi
the independent audit carried out by Statutory Auditors, Roy, (DIN: 03584600) Director (HR), NTPC Limited as an
C&AG has decided not to conduct the Supplementary Additional Director who holds office up to the date of this
Audit of the Financial Statements of the Company for the Annual General Meeting and is eligible for appointment.
year ended 31st March 2017 under Section 143(6)(a) of the The Company has received a requisite notice in writing from
Act. A copy of the letter issued by C&AG in this regard is NTPC Limited, proposing his candidature for the office of
placed after report of Statutory Auditors of your Company. Director liable to retire by rotation.
PARTICULARS OF EMPLOYEES The Board wishes to place on record its deep appreciation
As per Notification dated June 5, 2015 issued by the for the valuable services rendered by Shri U. P. Pani during
Ministry of Corporate Affairs, Government Companies are his association with the Company.
exempted from complying with the provisions of Section In accordance with the provisions of Companies Act, 2013,
197 of the Companies Act, 2013 and corresponding rules of Shri Gurdeep Singh, Chairman (DIN: 00307037) shall retire
Chapter XIII. As your company is a Government company, by rotation at this Annual General Meeting of your Company
the information has not been included as a part of the and, being eligible, offers himself for reappointment.
Directors’ Report. However, during the period under review
Number of meetings of the Board
your Company had no full time employees.
DIRECTORS’ RESPONSIBILITY STATEMENT During the financial year under review, 4 meetings of the
Board of Directors were held on the following dates:
As required under Section 134 (3) (c) and Section 134(5) of
the Companies Act, 2013, your Directors confirm that: Date of Board Meeting Total strength No. of
(i) in the preparation of the annual accounts, the of the Directors
applicable accounting standards had been followed Directors present
along with proper explanation relating to material May 17, 2016 3 3
departures;
July 28, 2016 3 3
(ii) the Directors had selected such accounting policies
and applied them consistently and made judgments November 16, 2016 3 3
and estimates that are reasonable and prudent so as March 3, 2017 3 3
to give a true and fair view of the state of affairs of the
company at the end of the financial year 2016-17 and The details of the number of meetings attended, during the
of the loss of the company for that period; financial year under review, by each director are as follows:
(iii) the Directors had taken proper and sufficient care
Name of the Director Designation Attendance
for the maintenance of adequate accounting records
during
in accordance with the provisions of the Companies
2016-17
Act, 2013 for safeguarding the assets of the company
and for preventing and detecting fraud and other Shri Gurdeep Singh Chairman 4 out of 4
irregularities; Shri U.P. Pani Director 2 out of 2
(iv) the Directors had prepared the annual accounts on a (ceased w.e.f 31.10.2016)
going concern basis; and Shri Kulamani Biswal Director 4 out of 4
(v) the directors had devised proper system to ensure
Shri Saptarshi Roy Director 2 out of 2
compliance with the provisions of all applicable laws
(appointed w.e.f.
and that such systems were adequate and operating 16.11.2016)
effectively.
DIRECTORS CORPORATE SOCIAL RESPONSIBILITY
In compliance with the provisions of Section 135 of the
During the financial year consequent upon superannuation
Companies Act, 2013 and the Companies (Corporate
3
A Maharatna Company
Social Responsibility Policy) Rules, 2014, your company EXTRACT OF ANNUAL RETURN
has constituted the Corporate Social Responsibility (CSR)
Committee consisting of 3 directors. As per requirement of Section 92 (3), Section 134 (3) of
the Companies Act, 2013 and Rule 12 of the Companies
During the financial year under review, 2 meetings of the
CSR committee were held on the following dates: (Management and Administration) Rules, 2014, an extract of
the Annual Return in form MGT-9 is given under Annexure-
Date of CSR Committee Total strength No. of Directors III.
Meetings of Directors present
PARTICULAR OF CONTRACTS OR ARRANGEMENTS WITH
May 17, 2016 3 3 RELATED PARTIES
March 28, 2017 3 3 Your company has not entered into any contracts or
arrangements with related parties during the financial year
The details of the number of meetings attended, during the 2016-17.
financial year under review, by each director are as follows:
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
Name of the Director Designation Attendance FOREIGN EXCHANGE EARNING AND OUTGO
during 2016-17
During the financial year under review your Company did
Shri Gurdeep Singh Chairman 2 out of 2 not have any operations and has no significant particulars,
Shri U.P. Pani Director 1 out of 1 relating to conservation of energy, technology absorption
(ceased w.e.f 31.10.2016) under Rule 8 of the Companies (Accounts) Rules, 2014.
Shri Kulamani Biswal Director 2 out of 2 During the period under review, there were no foreign
exchange earnings and expenditure in foreign currency.
Shri Saptarshi Roy Director 1 out of 1
(appointed w.e.f. ACKNOWLEDGEMENT
16.11.2016)
The Board of Directors wishes to place on record its
As per the requirement of Section 135 of the Companies appreciation for the support, contribution and co-
Act, 2013 and Rule 8 (1) of the Companies (Corporate operation extended by the Ministry of Power, various
Responsibility Policy) Rules, 2014 the annual report on CSR state governments, state utilities, customers, contractors,
activities is at Annexure-II. vendors, the Auditors, the Bankers and NTPC Limited.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS For and on behalf of the Board of Directors
UNDER SECTION 186
Your company has not given any loans or guarantees or
Sd/-
made any investment covered under the provisions of
(GURDEEP SINGH)
section 186 of the Companies Act, 2013.
CHAIRMAN
MATERIAL CHANGES AND COMMITMENTS DIN: 00307037
No material changes and commitments, have taken place Place: New Delhi
between financial year ended March 31, 2017, to which the
Date: July 27, 2017
financial statements relate and the date of this Directors’
Report, which affects the financial position of your Company.
4
A Maharatna Company
Annexure-I
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS Companies for financial turnaround by restructuring

their debt with support through a Transitional Finance
DISTRIBUTION Mechanism, has provided an opportunity to your Company
The electricity sector in India has been operated under to get involved aggressively in distribution business in cities
a monolithic structure. With the growing requirements and other areas. In the Financial Restructuring program,
for improvement in the sector, various models to bring in involvement of private participation in any mode has been
improvements and investments into the sector have been made a mandatory condition for getting financial assistance
contemplated. Unbundling of the state electricity boards from government. To bring in competition and efficiency in
into functional companies is already a reality. In order to the supply of electricity with more than one supply licensee
bring in accelerated improvements, further restructuring offering supply of electricity to consumers in the same
of the distribution segment is being contemplated. area, separation of carriage (wire network) and content
Restructuring contemplates breaking down the distribution (electricity) in the distribution sector is being looked at by
business into smaller business units, with induction of the Government of India. Ministry of Power is planning to
expertise from private sector management, through - introduce multiple supply licensees in the content (electricity
Distribution Franchisee Operations. supply business) based on market principles. In this regard
Distribution and retail supply is the most important component Power Ministry has proposed various amendments in
in the power sector value chain which interfaces with end certain sections of the Electricity Act, 2003. The proposed
customers and provides revenue for the entire value chain. amendments will mandate distribution licensees to only
Sustenance of other sector like manufacturing & production operate and maintain the distribution system (wire business)
etc. is dependent on the commercial performance and with no concern for commercial supply of electricity. Your
financial viability of the distribution sector in India. Over Company is continuously looking into these opportunities
the past 16-17 years, a number of states have worked to for making a footprint in this changed scenario of electricity
improve the commercial performance of their state utilities, distribution business as Distribution Network Operator and
unbundling state entities, creating independent regulatory supply licensee as well.
systems, and putting in place measures to control losses RISKS AND CONCERNS
and theft. However, progress has been difficult and slower
than envisaged. So far the main thrust area of your Company was on project
There is substantial potential for reform and growth in implementation on deposit work basis under RGGVY. But
distribution sector where industrial and commercial subsequent to the transfer of all business operations to
consumers are willing to pay commensurate tariffs for NTPC, all manpower has been repatriated back to NTPC.
quality and reliable power whereas Discoms due to their Although new Electricity Act, 2003 provides ample
poor financial condition are unable to purchase power and opportunities to new players in the field of retail
service the customers. Keeping this in mind, your Company distribution but in reality the state owned Discoms have not
is contemplating for acquisition of distribution circles implemented the same in spirit. The Act envisaged growth
either through franchisee bidding mode/ PPP or through of electricity distribution business through private licensees,
acquisition on nomination basis. introduction of open access and phased withdrawal of
cross subsidy. But, so far, these goals are quite far from
STRENGTH AND WEAKNESS realization. Therefore, one of the major risks anticipated by
Your Company’s strength lies in its association with a strong your Company is inability to make a perceptible presence in
promoter viz. NTPC Limited having a formidable track record the distribution sector under prevalent scenario.
in power project, engineering, construction, commissioning, Your Company being the wholly owned subsidiary of NTPC
operation and maintenance for more than 40 years. NTPC’s Limited is governed by the framework of Risk Management
formidable network, rapport and credibility with customer in NTPC Limited. Key risks are regularly monitored through
utilities, Discoms, its downstream power market and trading reporting of key performance indicators of identified risks.
arm are added advantages to your Company.
INTERNAL CONTROL
OPPORTUNITIES AND OUTLOOK Your Company has adequate internal control systems and
The Electricity Act, 2003 and Government of India scheme procedures in place commensurate with the size and
for Financial Restructuring of State owned Distribution nature of its business. Currently your Company is not having
5
A Maharatna Company
any business operations but your Company has adopted Reserves & Surplus
the internal control system of its holding company viz. NTPC During the current financial year, a sum of (`18.12) Lakh
Limited. During the days of business operations, authorities
has been adjusted to Reserves and Surplus as compared to
vested in various levels were exercised within framework
`112.83 Lakh transferred during the previous year.
of appropriate checks and balances. The effectiveness of
the checks and balances and internal control systems were Current Assets
reviewed during internal audit carried out by Internal Audit
Department of NTPC Limited. An independent internal audit The current assets at the end of the financial year under
was also carried out by experienced firm of Chartered review were `17.65 Lakh as compared to `17.35 Lakh in
Accountants in close co-ordination with departments of the previous year.
Company and Internal Audit Department of NTPC Limited. (`Lakh)
As the systems and procedures of Internal control are in
place, the same will get activated as the Company starts its 31.3.2017 31.3.2016
business operations. Trade receivables - -
Cash and cash equivalent 17.65 17.35
PERFORMANCE DURING THE YEAR
Other financial assets - -
Operations
Other current assets - -
Currently the Company does not have any business Total Current Assets 17.65 17.35
operations in retail distribution, the same will be taken-up at
an appropriate time when the opportunity becomes visible. The increase in current assets was mainly on account of
Financial Performance increase in cash and cash equivalent due to receipt of
interest income.
During the financial year under review the Company did
not have any operations and the main revenue of your Current Liabilities
Company is derived from Interest on bank deposits and
During the financial year 2016-17, current liabilities have
miscellaneous receipts.
increased to `3528.58 Lakh as compared to ` 3504.40 Lakh
(` Lakh) in the financial year 2015-16 mainly on account of increase
2016-17 2015-16 in other financial liabilities relating to deposit works.
Revenues from Operations - - (` Lakh)
Other income 0.30 140.48
31.3.2017 31.3.2016
Total 0.30 140.48
Trade payables - -
The expenditure incurred by your Company on account Other financial liabilities 3528.58 3504.40
of Other expenses for the current financial year as well as Other current liabilities - -
previous financial year is as follows: Total Current Liabilities 3528.58 3504.40
(` Lakh)
Cash Flow Statement
2016-17 2015-16 (` Lakh)
Other expenses 16.48 4.37
2016-17 2015-16
Total operating expenses 16.48 4.37
Opening Cash and cash 17.35 50961.40
The increase in expenses were mainly on account of CSR equivalents
expenditure required as per the Companies Act, 2013.
Net cash from operating - (51142.31)
(` Lakh) activities
2016-17 2015-16 Net cash from investing 0.30 198.26
activities
Profit/(Loss) before tax (16.18) 136.11
Net cash flow from financing - -
Tax expenses 1.94 23.28
activities
Profit /(Loss) for the year (18.12) 112.83
Net Change in Cash and 0.30 (50944.05)
During the current financial year, the Company has incurred cash equivalents
a loss of `18.12 lakh as compared to profit of `112.83 Lakh
Closing cash and cash 17.65 17.35
during the previous financial year. equivalents
6
A Maharatna Company
The closing cash and cash equivalents for the financial year Sexual Harassment of Women at the Workplace (Prevention,
ended March 31, 2017 has increased to `17.65 Lakh from Prohibition & Redressal) Act, 2013, all the employees
`17.35 Lakh. were regulated under the NTPC’s Policy on Prevention,
Prohibition and Redressal of Sexual Harassment of Women
Financial Indicators
at Workplace.
The various performance indicators for the current year as
compared to previous year are as under: HUMAN RESOURCES
2016-17 2015-16 As on 31st March 2017, there were no employees posted on

secondment basis from holding company viz NTPC Limited.
Capital employed in `Lakh 4246.80 4264.92
The NESCL manpower structure/resource is reviewed
Net worth in ` Lakh 4246.80 4264.92 from time to time to align it with the requirements of its
Return on capital employed (0.38%) 3.19% assignments.
(PBT/CE)
CAUTIONARY STATEMENT
Return on net worth (PAT/ (0.43%) 2.65%
Statements in the Management Discussion and Analysis
NW)
describing the Company’s objectives, projections, estimates
Dividend as % of equity - - and expectations are “forward-looking” statements within
capital
the meaning of applicable laws and regulations. Actual
Earning per share in ` (22.40) 139.45 results may vary materially from those expressed or
The capital employed as well as net worth has decreased implied. Important factors that could make a difference
due to loss incurred during the financial year 2016-17. to the Company’s operations include economic conditions
affecting demand/supply and price conditions in the
PROCUREMENT FROM MSEs markets in which the Company operates, changes in
Your Company does not have any operations during the Government regulations & policies, tax laws and other
financial year under review, hence no procurement of goods statutes and incidental factors.
and services were made from Micro and Small Enterprises
(MSEs) (including MSEs owned by SC/ST entrepreneurs), as For and on behalf of the Board of Directors
required under the Public Procurement Policy for Micro and
Small Enterprises, Order, 2012.
Sd/-
SEXUAL HARASSMENT OF WOMEN AT WORKPLACE. (GURDEEP SINGH)
During the financial year under review the company did not CHAIRMAN
have any employee. Since incorporation all the employees DIN: 00307037
of the company were on secondment basis from holding Place: New Delhi
company viz. NTPC Limited. In line with the requirement of Date: July 27, 2017
7
A Maharatna Company
“Annexure II” 2. The Composition of the CSR Committee.

1. A brief outline of the company’s CSR policy, including Name of the Director Designation
overview of projects or programs proposed to be
undertaken and a reference to the web-link to the CSR Shri Gurdeep Singh Chairman
policy and projects or programs. Shri Kulamani Biswal Director
Shri Saptarshi Roy Director
Keeping in view the size of the Company and manpower
3. Average net profit of the company for last three
required for executing the CSR activities, your Company
financial years.
has adopted the CSR policy of its holding company
The average net profit of the Company for three
viz. NTPC Limited and also undertaking CSR activities
immediately preceding financial years i.e. 2013-14,
through NTPC Limited. 2014-15 and 2015-16 is `750 Lakh.
NTPC Limited is executing the CSR activities for long and 4. Prescribed CSR Expenditure.
having a formidable set-up for executing CSR activities. The Company as per the requirement of the Companies
The CSR Policy of NTPC Limited is formulated keeping Act, 2013, is required to spend 2% of ` 750 Lakh i.e. `
in view the requirements of the Companies Act, 2013 15 Lakh in the financial year 2016-17.
and the Department of Public Enterprises. The CSR 5. Details of CSR spent during the financial year 2016-17.
policy focused on Health, Sanitation, Drinking Water,
(a) Total amount spent for : 16.16 Lakh
Education, Capacity Building, Women Empowerment,
the financial year
Social Infrastructure Development, support to Physically
Challenged Person (PCPs), and activities contributing (b) Amount unspent, if any : Nil
towards Environment Sustainability and other subject (c) Manner in which the : Detailed below
matter described under schedule VII of the Companies amount spent during the
Act, 2013. financial year
(1) (2) (3) (4) (5) (6) (7) (8)

S.No CSR project or activity Sector in Projects or Programs Amount Amount spent on Cumulative Amount
identified. Which the (1) Local area or outlay the Projects or expenditure spent: Direct
Project is other (budget) programs Sub- upto to the or through
covered. (2) Specify the State Project or heads: (1) Direct reporting implementing
and the district Programs expenditure period. agency
where projects wise on projects or
or progams was programs-
undertaken. (2) Overheads:
1. Providing Dual Desk Education Ramagundam, ` 16.16 Lakh ` 16.16 Lakh ` 16.16 Lakh Direct
Benches in Schools Dist. Karimnagar,
Telangana
6. Reasons for not spending two per cent of the average net profit of the last three financial years or any part thereof.
Not Applicable
7. A responsibility statement of the CSR Committee
The Responsibility Statement of the Corporate Social Responsibility Committee is reproduced below:
The implementation and monitoring of Corporate Social Responsibility Policy, is in compliance with CSR objectives
and policy of the Company.
For and on behalf of the Board of Directors
Sd/-
(GURDEEP SINGH)
CHAIRMAN
DIN: 00307037
Place: New Delhi
Date: July 27, 2017
8
A Maharatna Company
“Annexure III”
Form No. MGT-9
Extract of Annual Return
as on the financial year ended on March 31, 2017
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:
i) CIN : U40108DL2002GOI116635
ii) Registration Date : August 21, 2002
iii) Name of the Company : NTPC Electric Supply Company Limited
iv) Category / Sub-Category of the Company : Company Limited by shares
v) Address of the Registered office and contact details : N
TPC Bhawan, Core 7, SCOPE Complex,
7, Institutional Area, Lodi Road, New
Delhi-110 003, Ph. No. 011-24360071
vi) Whether listed company Yes / No : NO
vii) Name, Address and Contact details of Registrar and Transfer Agent, if any : N.A.
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the company shall be stated: -
Sl. Name and Description of main products/ NIC code of the Product/service % to total turnover of the
No. Services company
1. N.A N.A. N.A.
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES –
S. Name and address of the CIN/GLN Holding/ Subsidiary/ % of shares Applicable Section
No. Company Associate held
1. NTPC Limited L40101DL1975GOI007966 Holding 100 Section 2 (46) of the
NTPC Bhawan, Core Companies Act, 2013
7, SCOPE Complex, 7,
Institutional Area, Lodhi
Road, New Delhi-110 003
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i) Category-wise Share Holding
Category of No. of Shares held at the beginning of the No. of shares held at the end of the year % Change
Shareholders year during
Demat Physical Total % of Demat Physical Total % of the year
Total Total
shares shares
A. Promoters
(1) Indian
a) Individual/ HUF - - - - - - - - -
b) Central Govt. - - - - - - - - -
c) State Govt.(s) - - - - - - - - -
d) Bodies Corp. - 80,210 80,210 99 - 80,210 80,210 99 -
(NTPC Limited)
e) Banks/FI - - - - - - - - -
9
A Maharatna Company
Total Total
shares shares
f) ny Other
A - 700 700 1 - 700 700 1 -
(Nominees of
NTPC)
Sub-total (A) (1):- - 80,910 80,910 100 - 80,910 80,910 100 -
(2) Foreign
a) NRIs- - - - - - - - - -
individuals
b) Other- - - - - - - - - -
Individuals
c) Bodies Corp. - - - - - - - - -
d) Banks / FI - - - - - - - - -
e) Any Other…. - - - - - - - - -
Sub-total (A) (2):- - - - - - - - - -
Total shareholding - 80,910 80,910 100 - 80,910 80,910 100 -
of Promoter (A) =
(A)(1) + A(2)
B. Public Shareholding
1. Institutions
a) Mutual Funds - - - - - - - - -
b) Banks/FI - - - - - - - - -
c) Central Govt. - - - - - - - - -
d) State Govt.(s) - - - - - - - - -
e) Venture Capital - - - - - - - - -
Funds
f) Insurance - - - - - - - - -
Companies
g) FIIs - - - - - - - - -
h) Foreign - - - - - - - - -
Venture Capital
Funds
i) Others(specify) - - - - - - - - -
Sub-total (B) (1):- - - - - - - - - -
2. Non-institutions
a) Bodies Corp.
i) Indian - - - - - - - - -
ii) Overseas - - - - - - - - -
b) Individuals
i) Individual - - - - - - - - -
Shareholders
holding
nominal share
capital upto `
1 lakh
10
A Maharatna Company
Total Total
shares shares
ii) Individuals - - - - - - - - -
shareholders
holding
nominal share
capital in
excess of ` 1
lakh
c) Others(specify) - - - - - - - - -
Sub-total (B) (2):- - - - - - - - - -
Total Public - - - - - - - - -
Shareholding
(B)=(B)(1)+(B) (2)
C. Shares held by - - - - - - - - -
Custodian for
GDRs & ADRs
Grand Total (A+B+C) - 80,910 80,910 100 - 80,910 80,910 100 -
(ii) Shareholding of Promoters
Sl Shareholder’s Shareholding at the beginning of the Shareholding at the end of the year
No. Name year
No. of % of total % of Shares No. of % of total % of Shares % change
Shares Shares Pledged / shares Shares Pledged / in the
of the encumbered of the encumbered shareholding
company to total company to total during the
shares shares year
1. NTPC Limited 80,210 99 - 80,210 99 - -
2. Nominee of NTPC 700 1 - 700 1 - -
(iii) Change in Promoters’ Shareholding (please specify, if there is no change)
Sl Shareholding at the beginning Cumulative shareholding during

No. of the year the year
No. of Shares % of total No. of shares % of total
Shares of the Shares of the
company company
At the beginning of the year 80,910 100 80,910 100
Date wise Increase / Decrease in Promoters No change No change No change No change
Shareholding during the year specifying the
reasons for increase / decrease (e.g. allotment /
transfer / bonus / sweat equity etc.) :
At the End of the year 80,910 100 80,910 100
11
A Maharatna Company
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, promoters and Holders of GDRs and ADRs)
Sl For each of Top 10 shareholders Shareholding at the beginning Cumulative shareholding during
company company
At the beginning of the year - - - -
Date wise Increase / Decrease in Shareholding - - - -
during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer /
bonus / sweat equity etc.) :
At the End of the year ( or on the date of - - - -
separation, if separated during the year)
(v) Shareholding of Directors and Key Managerial Personnel:

Sl For each of the Directors and KMP Shareholding at the beginning Cumulative shareholding during
company company
1. Shri Gurdeep Singh, Chairman
(As Nominee of NTPC Limited)
At the beginning of the year 100 - 100 -
Date wise Increase / Decrease in Shareholding No change No change No change No change
At the End of the year 100 - 100 -
2. Shri U.P.Pani, Director
Date wise increase / decrease in Shareholding No change No change No change No change
increase / decrease (e.g. allotment / transfer/
bonus /sweat equity etc):
Ceased to be Director w.e.f 31/10/2016 100 - 100 -
3. Shri Kulamani Biswal, Director
Date wise increase / decrease in Shareholding No change No change No change No change
increase / decrease (e.g. allotment / transfer/
bonus /sweat equity etc):
4. Shri Saptarshi Roy
Equity shares transferred on 28.07.2016, as 100 - 100 -
nominee of NTPC
At the end of the year 100 - 100 -
12
A Maharatna Company
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrue but not due for payment
Secured Loans Unsecured Deposits Total

excluding Loans Indebtedness
deposits
Indebtedness at the beginning of the financial year - - - -
i) Principal Amount - - - -
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - - - -
Total (i + ii + iii) - - - -
Change in Indebtedness during the financial year
• Addition
• Reduction - - -
Net Change - - - -
Indebtedness at the end of the financial year - - - -
i) Principal amount - - - -
Total ( i + ii + iii) - - - -
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
Sl. Particulars of Remuneration Name of MD/WTD /Manager Total

No. Amount
1. Gross Salary - - - - -
(a) Salary as per provisions contained in - - - - -
section 17(1) of the Income-tax Act,1961
(b) Value of perquisites u/s 17(2) of the - - - - -
Income-tax Act, 1961
(c) Profits in lieu of salary under section - - - - -
17(3) of the Income-tax Act, 1961
2. Stock Option - - - - -
3. Sweat Equity - - - - -
4. Commission - - - - -
- as % of profit -
- others, specify… -
5. Others, please specify - - - - -
Total (A) - - - - -
Ceiling as per the Act - - - - -
13
A Maharatna Company
B. Remuneration to other directors:
Sl. Particulars of Remuneration Name of Directors Total

No. Amount
1. Independent Directors - - - - -
• Fee for attending board committee
meetings
• Commission
• Others, please specify
Total (1) - - - - -
2. Other Non-Executive Directors - - - - -
meetings
• Commission
Total (2) - - - - -
Total (B) = (1 + 2) - - - - -
Total Managerial Remuneration - - - - -
Overall Ceiling as per the Act - - - - -
C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD
Sl. Particulars of Remuneration Key Managerial Personnel

No. CEO Company CFO Total
secretary
1. Gross Salary N.A N.A N.A N.A
(a) Salary as per provisions contained in section 17(1) of N.A N.A N.A N.A
the Income-tax Act,1961
(b) Value of perquisites u/s 17(2) of the Income-tax Act, N.A N.A N.A N.A
1961
(c) Profits in lieu of salary under section 17(3) of the N.A N.A N.A N.A
2. Stock Option N.A N.A N.A N.A
3. Sweat Equity N.A N.A N.A N.A
4. Commission - as % of profit N.A N.A N.A N.A
- others, specify
5. Others, please specify N.A N.A N.A N.A
Total N.A N.A N.A N.A
14
A Maharatna Company
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
Type Section of the Brief description Details of Authority (RD / Appeal made,
companies act Penalty / NCLT / COURT) if any (give
Punishment / details)
Compounding
fees imposed
A. COMPANY
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
B. DIRECTORS
Penalty - - - - -
C. OTHER OFFICERS IN DEFAULT
Penalty - - - - -
Sd/-
(GURDEEP SINGH)
CHAIRMAN
DIN: 00307037
Place: New Delhi
Date: July 27, 2017
15
A Maharatna Company

BALANCE SHEET AS AT 31ST MARCH 2017
(Acounts in ` Lakhs)
Particulars Note No. As at As at As at
31.03.2017 31.03.2016 01.04.2015
ASSETS
Non-current assets
Property, plant & equipment 2 - - 38.69
Intangible assets 2 - - 0.57
Financial Assets
Investments 3 - - 5.00
Other non-current assets 4 7,757.73 7,751.97 5,361.00
Total non-current assets 7,757.73 7,751.97 5,405.26
Current assets
Financial assets
Trade receivables 5 - - 3,467.27
Cash and cash equivalent 6 17.65 17.35 50,961.40
Other financial assets 7 - - 4,539.61
Other current assets 8 - - 98.34
Total current assets 17.65 17.35 59,066.62
TOTAL ASSETS 7,775.38 7,769.32 64,471.88
EQUITY AND LIABILITIES

Equity
Equity share capital 9 8.09 8.09 8.09
Other equity 10 4,238.71 4,256.83 4,144.00
Total equity 4,246.80 4,264.92 4,152.09
Liabilities
Current liabilities
Financial liabilities
Trade payables 11 - - 1,900.86
Other financial liabilities 12 3,528.58 3,504.40 1,725.78
Other current liabilities 13 - - 56,693.15
Total current liabilities 3,528.58 3,504.40 60,319.79
TOTAL EQUITY AND LIABILITIES 7,775.38 7,769.32 64,471.88

Significant Accounting Policies 1
The accompanying notes 1 to 22 form an integral part of these financial statements.
This is the Balance Sheet referred to in our report of even date.

For M/S. P R KUMAR & CO.
Chartered Accountants
Firm Reg No - 003186N
(Rahul Kathuria) (Animesh Jain) (Kulamani Biswal) (Gurdeep Singh)

Partner Chief Executive Office Director Chairman
M. No. 090657
Place: New Delhi
Date: 18th May 2017
16
A Maharatna Company

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2017
(Amount in ` Lakhs)
Particulars Note No. For the For the
year ended year ended
31.03.2017 31.03.2016
Revenue
Other income 14 0.30 140.48
Total revenue 0.30 140.48
Expenses
Other expenses 15 16.48 4.37
Total expenses 16.48 4.37
Profit /(Loss)before tax (16.18) 136.11

Tax expense
Current tax
Current year - 23.28
Earlier years 1.94 -
Total tax expense 1.94 23.28
Profit/(Loss) for the year (18.12) 112.83
Other comprehensive income/ (Loss)
Other comprehensive income /(Loss)for the year, net of income tax - -
Total comprehensive income for the year (18.12) 112.83

Significant accounting policies 1
Earnings per equity share (Par value `10/- each) 18
Basic & Diluted (`) (22.40) 139.45
The accompanying notes 1 to 22 from an integral part of these financial statements.
This is the Statement of Profit & Loss referred to in our report of even date.


M. No. 090657
Place: New Delhi
Date: 18th May 2017
17
A Maharatna Company

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2017
(Amount in ` Lakhs)
31.03.2017 01.04.2016
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit/(Loss) before tax (16.18) 136.11
Adjustment for:
Depreciation - -
Provisions - -
Interest Received (0.30) (128.01)
Operating Profit before Working Capital Changes (16.48) 8.10
Adjustment for:
Trade & Other Receivables - 3,467.27
Trade Payables & Other Liabilities 24.18 (56,815.38)
Other Current Assets - 4,611.94
Loans & Advances - 24.18 -
Cash generated from operations 7.70 (48,728.06)
Direct Taxes Paid 7.70 2,414.25
Net Cash from Operating Activities - A 0.00 (51,142.31)
B. CASH FLOW FROM INVESTING ACTIVITIES

Purchase / Sale of Fixed Assets - 39.25
Interest Received 0.30 128.01
Investment in Joint Venture - 31.00
Net cash flow from Investing Activities - B 0.30 198.26
C. CASH FLOW FROM FINANCING ACTIVITIES

Dividend Paid - -
Tax on Dividend - -
Net Cash flow from Financing Activities - C - -
Net Increase/Decrease in Cash & Cash equivalents (A + B + C) 0.30 (50,944.05)
Cash & cash equivalents (Opening balance) (see Note below) 17.35 50,961.40
Cash & cash equivalents (Closing balance) (see Note below) 17.65 17.35
NOTES
Cash and Cash Equivalents consist of Balance with Banks. Cash and cash equivalents included in the cash flow
statement comprise of following balance sheet amounts as per Note 6 & 6A:
Cash and cash equivalents 11.23 17.35

Demand deposit included in other bank balance 6.42 -
17.65 17.35

In terms of our Audit Report attached

M. No. 090657
Place: New Delhi
Date: 18th May 2017
18
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH 2017
(A) Equity share capital
For the year ended 31 March 2017
(Amount in ` Lakh)
Balance as at 1 April 2016 8.09
Changes in equity share capital during the year -
Balance as at 31 March 2017 8.09
(Amount in ` Lakh)
Balance as at 1 April 2015 8.09
Changes in equity share capital during the year -
Balance as at 31 March 2016 8.09
(B) Other equity
For the year ended 31 March 2017 (Amount in ` Lakh)
General reserve Retained earnings Equity instruments Total
through OCI
Balance as at 1 April 2016 920.59 3,336.24 - 4,256.83
Profit for the year - (18.12) - (18.12)
Other comprehensive income - - - -
Total comprehensive income - (18.12) - (18.12)
Adjustment during the year - - - -
Transfer to retained earnings - - - -
Transfer from retained earnings - - - -
Balance as at 31 March 2017 920.59 3,318.12 - 4,238.71
For the year ended 31 March 2016 (Amount in ` Lakh)
General reserve Retained earnings Equity instruments Total
through OCI
Balance as at 1 April 2015 920.59 3223.41 - 4144.00
Profit for the year - 112.83 - 112.83
Other comprehensive income - - - -
Total comprehensive income - 112.83 - 112.83
Adjustment during the year - - - -
Transfer to retained earnings - - - -
Transfer from retained earnings - - - -
Balance as at 31 March 2016 920.59 3,336.24 - 4,256.83
This is the Statement of Changes in Equity referred to in our report of even date.
A Maharatna Company
19
M. No. 090657

Place: New Delhi
Date: 18th May 2017
A Maharatna Company
Note No.1 - Significant Accounting Policies 4 Current and non-current classification

1 Company Information T he Company presents assets and liabilities
A. Reporting Entity in the balance sheet based on current/non-
NTPC Electric Supply Limited (the “Company”) is a current classification.
Company domiciled in India and limited by shares An asset is current when it is:
(CIN: U40108DL2002GOI116635). The address of • xpected to be realized or intended to
E
the Company’s registered office is NTPC Bhawan, be sold or consumed in normal operating
SCOPE Complex, 7 Institutional Area, Lodi Road, cycle;
New Delhi - 110003. The company is wholly owned
• E
xpected to be realized within twelve
by NTPC Limited. The Company was incorporated
months after the reporting period; or
for the distribution business and later started
deposit and consultancy works, all operations • Cash or cash equivalent unless restricted
of which have been transferred to the parent from being exchanged or used to settle
Company w.e.f 01.04.2015. a liability for at least twelve months after
the reporting period.
B. Basis of preparation
ll other assets are classified as non-
A
1 Statement of Compliance
current.
These separate financial statements are
prepared on accrual basis of accounting and A liability is current when:
comply in all material aspects with the Indian • It is expected to be settled in normal
Accounting Standards (Ind AS) notified under operating cycle;
the Companies (Indian Accounting Standards) • It is due to be settled within twelve
Rules, 2015 and subsequent amendments months after the reporting period; or
thereto, and the Companies Act, 2013 (to
• There is no unconditional right to defer
the extent notified and applicable). These
settlement of the liability for at least
are the Company’s first Ind AS compliant
twelve months after the reporting period.
financial statements and Ind AS 101 ‘First Time
Adoption of Indian Accounting Standards’ has ll other liabilities are classified as non-
A
been applied. current.
For all the periods upto and including 31 March C. Significant Accounting Policies
2016, the Company prepared its financial A summary of the significant accounting policies
statements in accordance with Generally applied in the preparation of the financial
Accepted Accounting Principles (GAAP) in statements are as given below. These accounting
India, accounting standards specified under policies have been applied consistently to all
Section 133 of the Companies Act, 2013. The periods presented in the financial statements.
Company followed the provisions of Ind AS The Company has elected to utilize the option
101 in preparing its opening Ind AS Balance under Ind AS 101 by not applying the provisions
Sheet as of the date of transition, viz. 1 April of Ind AS 16 (Property, Plant and Equipment)
2015 & Ind AS 38(Intangible Assets) retrospectively
The impact of transition to Ind AS has on and continue to use the previous GAAP carrying
the reported financial position, financial amount as a deemed cost under Ind AS at the
performance and cash flows of the Company date of transition to Ind AS. Therefore, the carrying
have been discussed at Note no. 16 to the amount of property, plant and equipment and
Financial Statements. intangible assets as per the previous GAAP as at 1
2 Basis of Measurement April 2015, i.e; the Company’s date of transition to
The financial statements have been prepared Ind AS, were maintained on transition to Ind AS.
on the historical cost basis as prescribed 1 Property, Plant & Equipment
under Ind AS 101 except otherwise stated. 1.1 Initial Recognition and Measurement
3 Functional and Presentation Currency Items of property, plant and equipment
These financial statements are presented in are measured at cost less accumulated
Indian Rupees (INR), which is the Company’s depreciation/ amortization and
functional currency. accumulated impairment losses. Cost
20
A Maharatna Company
includes expenditure that is directly 3 Provisions and Contingent Liabilities

attributable to bringing the asset to the A provision is recognized if, as a result of a
location and condition necessary for it to past event, the Company has a present legal or
be capable of operating in the manner constructive obligation that can be estimated
intended by management. reliably, and it is probable that an outflow of
1.2 Derecognition economic benefits will be required to settle the
obligation. If the effect of the time value of money is
Property, plant and equipment is
material, provisions are determined by discounting
derecognized when no future economic
the expected future cash flows at a pre-tax rate
benefits are expected from their use or
that reflects current market assessments of the
upon their disposal. Gains and losses on
time value of money and the risks specific to the
disposal of an item of property, plant and
liability. When discounting is used, the increase
equipment are determined by comparing
in the provision due to the passage of time is
the proceeds from disposal with the
recognized as a finance cost.
carrying amount of property, plant and
equipment, and are recognized in the The amount recognized as a provision is the best
statement of profit and loss. estimate of the consideration required to settle the
present obligation at reporting date, taking into
1.3 Depreciation / Amortisation
account the risks and uncertainties surrounding
Depreciation is recognized in statement the obligation.
of profit and loss on a straight-line basis When some or all of the economic benefits required
over the estimated useful lives of each to settle a provision are expected to be recovered
part of an item of property, plant and from a third party, the receivable is recognized as
equipment. an asset if it is virtually certain that reimbursement
Depreciation on the following assets is will be received and the amount of the receivable
provided on their estimated useful life can be measured reliably. The expense relating to
ascertained on technical evaluation: a provision is presented in the statement of profit
and loss net of any reimbursement.
a) hotocopiers and Fax Machines:
P Contingent liabilities are possible obligations that
5 years arise from past events and whose existence will
b) ater coolers and refrigerators:
W only be confirmed by the occurrence or non-
5 years occurrence of one or more future events not
wholly within the control of the Company. Where
Depreciation on additions to/deductions
it is not probable that an outflow of economic
from property, plant & equipment during
benefits will be required, or the amount cannot
the year is charged on pro-rata basis
be estimated reliably, the obligation is disclosed
from/up to the month in which the asset
as a contingent liability, unless the probability of
is available for use/disposed.
outflow of economic benefits is remote. Contingent
Where it is probable that future economic liabilities are disclosed on the basis of judgment
benefits deriving from the cost incurred of the management/independent experts. These
will flow to the enterprise and the cost are reviewed at each balance sheet date and
of the item can be measured reliably, are adjusted to reflect the current management
subsequent expenditure on a PPE along- estimate.
with its unamortized depreciable amount
4 Revenue
is charged off prospectively over the
revised useful life determined by technical The Company’s revenues arise from other income
assessment. comprising interest from bank which is recognized,
when no significant uncertainty as to measurability
2 Cash and Cash Equivalents or collectability exists, on a time proportion basis
Cash and cash equivalents in the balance sheet taking into account the amount outstanding and
comprise cash at banks and on hand and short- the applicable interest rate.
term deposits with an original maturity of three 5 Income Tax
months or less, which are subject to an insignificant
Income tax expense comprises current and
risk of changes in value.
deferred tax. Current tax expense is recognized in
21
A Maharatna Company
profit or loss except to the extent that it relates to shareholders of the Company by the weighted
items recognized directly in other comprehensive average number of equity shares outstanding
income or equity, in which case it is recognized in during the financial year.
OCI or equity. Diluted earnings per equity share is computed by
Current tax is the expected tax payable on the dividing the net profit or loss attributable to equity
taxable income for the year, using tax rates enacted shareholders of the Company by the weighted
or substantively enacted and as applicable at the average number of equity shares considered for
reporting date, and any adjustment to tax payable deriving basic earnings per equity share and also
in respect of previous years. the weighted average number of equity shares
Deferred tax is recognized using the balance sheet that could have been issued upon conversion of
method, providing for temporary differences all dilutive potential equity shares.
between the carrying amounts of assets and 8 Cash Flow Statement
liabilities for financial reporting purposes and the Cash flow statement is prepared in accordance
amounts used for taxation purposes. Deferred with the indirect method prescribed in Ind AS 7
tax is measured at the tax rates that are expected ‘Statement of Cash Flows’.
to be applied to temporary differences when
9 Financial Instruments
they reverse, based on the laws that have been
enacted or substantively enacted by the reporting A financial instrument is any contract that gives rise
date. Deferred tax assets and liabilities are offset if to a financial asset of one entity and a financial
there is a legally enforceable right to offset current liability or equity instrument of another entity.
tax liabilities and assets, and they relate to income 9.1 Financial Assets
taxes levied by the same tax authority on the same Initial recognition and measurement
taxable entity, but they intend to settle current
tax liabilities and assets on a net basis or their tax All financial assets are recognized initially at
assets and liabilities will be realized simultaneously. fair value plus, in the case of financial assets
not recorded at fair value through profit or
Deferred tax is recognized in profit or loss except loss, transaction costs that are attributable to
to the extent that it relates to items recognized the acquisition or issue of the financial asset.
directly in OCI or equity, in which case it is
recognized in OCI or equity. Derecognition
A deferred tax asset is recognized to the extent A financial asset (or, where applicable, a part of
that it is probable that future taxable profits will be a financial asset or part of a Company of similar
available against which the temporary difference financial assets) is primarily derecognised (i.e.
can be utilized. Deferred tax assets are reviewed removed from the Company’s balance sheet)
at each reporting date and are reduced to the when:
extent that it is no longer probable that the related • The rights to receive cash flows from the
tax benefit will be realized. asset have expired, or
Additional income taxes that arise from the • The Company has transferred its rights
distribution of dividends are recognized at the to receive cash flows from the asset
same time that the liability to pay the related or has assumed an obligation to pay
dividend is recognized. the received cash flows in full without
6 Material Prior Period errors material delay to a third party under a
‘pass-through’ arrangement; and either (a)
Material prior period errors are corrected the Company has transferred substantially
retrospectively by restating the comparative all the risks and rewards of the asset, or
amounts for the prior periods presented in which (b) the Company has neither transferred
the error occurred. If the error occurred before the nor retained substantially all the risks and
earliest period presented, the opening balances of rewards of the asset, but has transferred
assets, liabilities and equity for the earliest period control of the asset.
presented, are restated.
9.2 Financial Liabilities
7 Earnings per share
Initial recognition and measurement
Basic earnings per equity share is computed by
dividing the net profit or loss attributable to equity Financial liabilities are classified, at initial
recognition, as financial liabilities at fair
22
A Maharatna Company
value through profit or loss, borrowings, accounting policies and the reported value of
payables, or as derivatives designated as assets, liabilities, income, expenses and related
hedging instruments in an effective hedge, disclosures concerning the items involved as well
as appropriate. All financial liabilities are as contingent assets and liabilities at the balance
recognized initially at fair value and, in sheet date. The estimates and management’s
the case of borrowings and payables, net judgments are based on previous experience and
of directly attributable transaction costs. other factors considered reasonable and prudent
The Company’s financial liabilities include in the circumstances. Actual results may differ from
trade and other payables, borrowings these estimates.
including bank overdrafts, financial Estimates and underlying assumptions are reviewed
guarantee contracts and derivative on an ongoing basis. Revisions to accounting
financial instruments. estimates are recognised in the period in which
Derecognition the estimates are revised and in any future periods
A financial liability is derecognized affected.
when the obligation under the liability In order to enhance understanding of the financial
is discharged or cancelled or expires. statements, information about significant areas of
When an existing financial liability is estimation, uncertainty and critical judgments in
replaced by another from the same applying accounting policies that have the most
lender on substantially different terms, significant effect on the amounts recognised in the
or the terms of an existing liability financial statements is as under:
are substantially modified, such an 1 Provisions and Contingencies
exchange or modification is treated as
The assessments undertaken in recognizing
the derecognition of the original liability
provisions and contingencies have been made
and the recognition of a new liability.
in accordance with Ind AS 37, ‘Provisions,
The difference in the respective carrying
Contingent Liabilities and Contingent
amounts is recognized in the statement of
Assets’. The evaluation of the likelihood of
profit or loss.
the contingent events has required best
D Use of Estimates and Management Judgements judgment by management regarding the
The preparation of financial statements requires probability of exposure to potential loss.
management to make judgments, estimates and Should circumstances change following
assumptions that may impact the application of unforeseeable developments, this likelihood
could alter.
23
24
2. Property, plant and equipment and intangible Assets
As at 31 March 2017 (Amount in ` Lakhs)
A Maharatna Company
Particulars Gross Block Depreciation/Amortisation and Impairment Net Block

As at Deductions/ As at Upto For Deductions/ Upto As at As at
01.04.2016 Additions Adjustments 31.03.2017 01.04.2016 the year Adjustments 31.03.2017 31.03.2017 31.03.2016
Tangible Assets
Furniture and fixtures - - - - - - - - - -
Office equipment - - - - - - - - - -
EDP, WP machines and satcom - - - - - - - - - -
equipment
Total - - - - - - - - - -
Intangible Assets
Software - - - - - - - - - -
Total - - - - - - - - - -
As at 31 March 2016 (Amount in ` Lakh)


Tangible Assets
Furniture and fixtures 10.40 - 10.40 - - - - - - 10.40
Office equipment 7.91 - 7.91 - - - - - - 7.91
EDP, WP machines and satcom 20.38 - 20.38 - - - - - - 20.38
equipment
Total 38.69 - 38.69 - - - - - - 38.69
Intangible Assets
Software 0.57 - 0.57 - - - - - - 0.57
Total 0.57 - 0.57 - - - - - - 0.57
For Transitional provisions and transfer/Disposal of assets, please refer Note nos 16 & 17.
A Maharatna Company

3. Non-current investments
(Amount in ` Lakhs)
Particulars As at As at As at
31.03.2017 01.04.2016 01.04.2016
Number of Face value per
shares/ bonds/ share bond/
securities security Current
Current year/ year/ (previous
(previous year) year)
Long term - Trade
Equity instruments (fully paid up)
Unquoted
Joint venture companies
KINESCO Power and Utilities Pvt. Ltd. - - 5.00
Total - - 5.00
4. Other non current assets

(Amount in ` Lakhs)
31.03.2017 31.03.2016 01.04.2015
Advances other than capital advances

- Advance tax & tax deducted at source 10,334.81 10,327.10 7,912.50
Less: Provision for tax 2,577.08 2,575.13 2,551.50
Total 7,757.73 7,751.97 5,361.00
Also refer Note nos. 16 & 17.
5. Trade receivables
(Amount in ` Lakhs)
31.03.2017 31.03.2016 01.04.2015
Trade receivables
Unsecured, considered good - - 3,467.27
Considered doubtful - - -
- - 3,467.27
Less: Allowance for bad & doubtful receivables - - -
Total - - 3,467.27
25
A Maharatna Company

6. Cash and cash equivalents
(Amount in ` Lakhs)
31.03.2017 31.03.2016 01.04.2015
Balances with banks

Current accounts 11.23 17.35 1,097.79
Deposits with original maturity of more than three months and maturing 6.42 - 49,863.61
within one year (including interest accrued)
Total 17.65 17.35 50,961.40
7. Other current financial assets
(Amount in ` Lakh)
31.03.2017 31.03.2016 01.04.2015
Claims recoverable
Unsecured, considered good - - 4,539.61
Total - - 4,539.61
8. Other current assets
` Lakh
31.03.2017 31.03.2016 01.04.2015
Security deposits (unsecured)

Advances
Related parties - KINESCO JV - - 26.00
Interest accrued on
Advances to contractors - - 72.34
- - 98.34
9. Share capital
` Lakh
31.03.2017 31.03.2016 01.04.2015
Equity share capital

Authorised
1,00,00,000 shares of par value `10/- each (1,00,00,000 shares of par 1,000.00 1,000.00 1,000
value `10/- each as at 31 March 2016 and 1 April 2015) wholly owned by
NTPC Ltd.
Issued, subscribed and fully paid up
80,910 shares of par value ` 10/- each (80,910 shares of par value `10/-
each as at 31 March 2016 and 1 April 2015) wholly owned by NTPC Ltd. 8.09 8.09 8.09
a) Movements in equity share capital:
During the year, the Company has neither issued nor bought back any shares.
26
A Maharatna Company

b) Terms and rights attached to equity shares:
The Company has only one class of equity shares having a par value `10/- per share. The holders of the equity shares
are entitled to receive dividends as declared from time to time and are entitled to voting rights proportionate to their
share holding at the meetings of shareholders.
c) 80,910 equity shares valuing `8,09,100 (previous year 80,910 equity shares valuing `8,09,100) are held by the holding
company ie NTPC Ltd., and its nominees.
10. Other equity
(Amount in ` Lakhs)
31.03.2017 31.03.2016 01.04.2015
General reserve 920.59 920.59 920.59
Retained earnings 3,318.12 3,336.24 3.223.41
Total 4,238.71 4,256.83 4,144.00
For the year ended

31.03.2017 01.04.2016
(a) General reserve
Opening balance 920.59 920.59
Add : Transfer from retained earnings - -
Less: Adjustments during the year - -
Closing balance 920.59 920.59
(b) Retained earnings
Opening balance 3,336.24 3,223.41
Add: Profit /(Loss) for the year as per Statement of Profit and Loss (18.12) 112.83
Closing balance 3,318.12 3,336.24
11. Trade Payable

(Amount in ` Lakhs)
31.03.2017 31.03.2016 01.04.2015
For goods and services - - 1,900.86
Total - - 1,900.86
12. Other current financial liabilities

` Lakh
31.03.2017 31.03.2016 01.04.2015
Other payables
Deposits from contractors and others - - -
Payable to employees - - 131.46
Others - Related Parties
Parent Company 3,528.58 3,504.40 1,574.21
JV - KINESCO - - 20.11
Total 3,528.58 3,504.40 1,725.78
27
A Maharatna Company

13. Other current liabilities
(Amount in ` Lakhs)
31.03.2017 31.03.2016 01.04.2015
Advances from customers and others - - 56,335.52
Other payables
Tax deducted at source and other statutory dues - - 357.63
Total - - 56,693.15
14. Other income

(Amount in ` Lakhs)
Particulars For the year Fo the year
ended ended
31.03.2017 31.04.2016
Other non-operating income
Miscellaneous income 0.30 140.48
Total 0.30 140.48
15. Other expenses

(Amount in ` Lakhs)
Particulars For the year Fo the year
ended ended
31.03.2017 31.04.2016
Payment to auditors 0.29 0.92
Professional charges and consultancy fee - 0.07
Legal expenses - 1.41
Miscellaneous expenses 0.03 1.97
0.32 4.37
Corporate Social Responsibility (CSR) expense 16.16 -
Total 16.48 4.37
b) Details in respect of payment to auditors:
As auditor
Audit fee including service tax 0.29 0.92
Total 0.29 0.92
16. First-time Adoption of Ind AS
These are the Company’s first Financial Statements in accordance with Ind AS. For the year ended 31 March 2016, the
Company prepared its financial statements in accordance with Indian GAAP, including accounting standards notified
under the Companies (Accounting Standards) Rules, 2006 (as amended). The effective date for Company’s Ind AS
Opening Balance Sheet is 1 April 2015 (the date of transition to Ind AS).
The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended
31st March 2017, the comparative information presented in these financial statements for the year ended 31st March
2016 and in the preparation of an opening Ind AS Balance Sheet at 1st April 2015 (the Company’s date of transition).
According to Ind AS 101, the first Ind AS Financial Statements must use recognition and measurement principles that
are based on standards and interpretations which are effective at 31st March 2017 ie.: the date of first-time preparation
of Financial Statements according to Ind AS. These accounting principles and measurement principles must be applied
retrospectively to the date of transition to Ind AS and for all periods presented within the first Ind AS Financial
Statements.
28
A Maharatna Company
Any resulting differences between carrying amounts of assets and liabilities according to Ind AS 101 as of 1st April 2015
compared with those presented in the Indian GAAP Balance Sheet as of 31st March 2015, were recognized in equity
under retained earnings within the Ind AS Balance Sheet.
An explanation of how the transition from previous GAAP to Ind AS has affected the company’s financial position,
financial performance and cash flows is set out in the following tables and notes.
Exemption and exceptions availed
In the Ind AS Opening Balance Sheet as at 1st April 2015, the carrying amounts of assets and liabilities from the Indian
GAAP as at 31st March 2015 are generally recognized and measured according to Ind AS in effect as on 31st March
2017. For certain individual cases, however, Ind AS 101 provides for optional exemptions and mandatory exceptions to
the general principles of retrospective application of Ind AS. The Company has made use of the following exemptions
and exceptions in preparing its Ind AS Opening Balance Sheet:
i) Property, plant and equipment & Intangible assets Ind AS 101 permits a first-time adopter to elect to continue
with the carrying value for all of its property, plant and equipment and intangible assets as recognised in the
financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as
its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities.
Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets
at their previous GAAP carrying value as its deemed cost as at the date of transition.
Reconciliation of equity as at 1st April 2015 and as at 31st March 2016
(Amount in ` Lakhs)
1st April 2015 31st March 2016
Note Previous Adjustments Ind ASs Previous Adjustments Ind ASs
GAAP* GAAP*
ASSETS
NON CURRENT ASSETS
Property, plant and equipment 39.26 - 39.26 - - -
Investments 5.00 - 5.00 - - -
Loans 5,361.00 (5,361.00) - - - -
Other financial assets - 5,361.00 5,361.00 - - -
Other non-current assets - - - 7,751.97 - 7,751.97
Current Assets
Trade receivables A 3,489.55 (22.28) 3,467.27 - - -
Cash and cash equivalents 50,961.40 - 50,961.40 17.35 - 17.35
Other financial assets 4,539.61 - 4,539.61 - - -
Other current assets 98.34 - 98.34 - - -
Total Assets 64,494.16 (22.28) 64,471.88 7,769.32 - 7,769.32
NON CURRENT LIABILITIES
EQUITY & LIABILITIES
Equity Share capital 8.09 - 8.09 8.09 - 8.09
Other equity A 4,166.28 (22.28) 4,144.00 4,256.83 - 4,256.83
CURRENT LIABILITIES - - - - -
Trade payables 1,900.86 - 1,900.86 - - -
Other current financial liabilities - 1,725.78 1,725.78 - 3,504.40 3,504.40
Other current liabilities 58,418.93 (1,725.78) 56,693.15 3,504.40 (3,504.40) -
Total equity and liabilities 64,494.16 (22.28) 64,471.88 7,769.32 - 7,769.32
29
A Maharatna Company
A . Changes due to prior period item amounting to Rs. 22.28 lakhs adjusted through retained earnings and trade receivables
has been reflected without adjustment of deferred tax due to the company not having any operations (Also refer
para 17).
Reconciliation of total comprehensive income for the year ended 31st March 2016
(Amount in ` Lakhs)
Previous GAAP* Adjustments Ind AS
INCOME
Revenue
Other income 140.48 - 140.48
Total Income 140.48 - 140.48
EXPENDITURE
Other expenses 4.37 - 4.37
Prior period items (Net) 22.28 (22.28) -
Total Expenses 26.65 (22.28) 4.37
Profit before tax 113.83 22.28 136.11
Profit /Lossbefore tax 113.83 22.28 136.11
Current tax - -
Current year 23.28 - 23.28
Total Tax 23.28 - 23.28
Profit after tax 90.55 22.28 112.83
Other comprehensive income
Other comprehensive income for the year, net of - - -
income tax
Total comprehensive income for the year 90.55 22.28 112.83
* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the
purposes of this note.
Reconciliation of total equity as at 31st March 2016 and 1st April 2015
(Amount in ` Lakhs)
31 March 2016
st
1st April 2015
Total equity (shareholder’s funds) as per previous GAAP 4,264.92 4,174.37
Total adjustments - (22.28)
Total equity as per Ind AS 4,264.92 4,152.09
Notes to first-time adoption:
Retained earnings :
Retained earnings as at 1 April 2015 has been adjusted consequent to the above Ind AS transition adjustments. Refer
‘Reconciliation of total equity as at 31st March 2016 and 1st April 2015 as given above for details.
Other Notes to Financial Statements
17. The shareholders of the Company in its Extra-ordinary General Meeting held on 24th March, 2015, inter alia, approved
the proposal for transfer and vesting of all existing operations of the company together with all assets and liabilities
relating to such operations to NTPC Limited, the holding company, with effect from 1st April, 2015. After obtaining
the aforesaid approval, the Company entered into an agreement with NTPC Limited to implement such transfer. In
pursuance of the above events, all the transactions have been carried out at their carrying value in the books of the
Company as on 1st April 2015 . The Company does not have any operations w.e.f 1st April 2015.
30
A Maharatna Company
18. Disclosure as per Ind AS 33 on ‘Earnings Per Share’

The elements considered for calculation of Earning Per Share (Basic & Diluted) are as under:
Current Year Previous Year

Net Profit after Tax used as numerator (Amount in ` Lakhs) (18.12) 112.83
Face value per share (Amount in `) 10.00 10.00
Weighted average number of equity shares used as denominator 80910 80910
Earning Per Share (Basic & Diluted) (Amount in `) (22.40) 139.45
19. The common services being utilized by the Company for it’s office are provided without any charges by the Holding
Company.
20. Disclosure as per Ind AS 24 on ‘Related Party Disclosures’
The Company is a wholly owned subsidiary of NTPC Ltd, which is the only related party with which various
transactions have taken place.
a) The list of related party is given below :-
i) NTPC Ltd - Holding Company.
ii) KINESCO Power and Utilities Pvt Ltd. -JV Company
iii) Utility Powertech Pvt Ltd.-JV of Holding Company
b) Details of transactions of related parties is given below :-
(Amount in ` Lakhs)
Details Current Year Previous Year
Related to transfer of operations as on 01.04.2015
Transfer of furniture, fixtures, equipment and software - 39.26
Transfer of bank balances including CLTDs - 50457.99
Transfer of balances trade receivables - 3489.55
Transfer of balances other receivables - 5389.64
Transfer of trade payables - 1900.89
Transfer of other liabilities - 56844.71
Transactions during the year:
Expenses paid by NTPC Ltd. on behalf of the company 24.18 2405.79
Payment received from JV company (KINESCO) - 31.00
c) Outstanding balances with related parties are as follows :
Particulars 31st March 2017 31st March 2016 1st April 2015
Amount payable to NTPC Ltd - Holding company 3528.59 3504.40 1574.21
Payable to KINESCO Power & Utilities Pvt Ltd - JV - - 20.11
Payable to Utility Powertech Ltd - JV of Holding Co. - - 120.75
21. Contingent Liabilities:
21.1 Orders to pay service tax along with interest and penalty have been served on the company for various years by the
Commissioner of Service Tax as tabled below. For serial numbers 1 to 3, the demands are a pass through item, the
liability of which is on REC Ltd. as per terms of contract. The orders have been challenged before CESTAT and are
pending disposal. Demand at serial number 4 pertains to services provided to Cochin Port Trust by the company,
against which an appeal has been filed.
31
A Maharatna Company
Sl. Particulars Financial Year (Amount in ` Lakhs )

2014-15 2015-16 2016-17
1 Service Tax on Deposit Works ( RGGVY ) 2007-2011 84968.74 92439.24 99,371.50
2 Service Tax on Deposit Works ( RGGVY ) 2011-2012 4980.63 5590.43 6,216.22
3 Service Tax on Deposit Works ( RGGVY ) 2012-2013 293.84 334.33 376.47
4 Service Tax on Deposit Works ( others ) 2011-2012 34.36 37.12 39.77
Total 90,277.57 98,401.12 106,003.97
21.2 The company has received notice of demand from the Income Tax Department and in relation to such demand the
company has filed an appeal with the appropriate authorities and the same has been tabled below :
Sl. Particulars Financial (Amount in ` Lakhs ) Remarks for 2016-17
Year
2014-15 2015-16 2016-17
1 Order of ITAT received 2008-09 1038.10 1038.10 1,038.10 ITAT has ruled in favour of the
Company. However, no information
is available on whether the
department has proceeded with the
case at the High Court level. Appeal
effect is pending for ITAT order.
2 Demand u/s 143 (3) 2010-11 2255.93 2255.93 2,255.93 Pending with ITAT
Demand u/s 143 (3) 2011-12 2398.45 - - Demand amount Paid
3 Demand u/s 143 (3) 2012-13 - 1451.87 1,451.87 In appeal with CIT(A)
4 Demand u/s 143 (3) 2013-14 - - 1,842.80 In appeal with CIT(A)
22. Previous year’s figures have been regrouped/rearranged wherever necessary.

These are the notes referred to in Balance Sheet and Statement of profit and Loss


M. No. 090657
Place: New Delhi
Date: 18th May 2017
32
A Maharatna Company
INDEPENDENT AUDITORS REPORT

To the Members of reasonable assurance about whether the standalone Ind
NTPC Electric Supply Company Limited AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit
Report on the Standalone Ind AS Financial Statements evidence about the amounts and the disclosures in the
We have audited the accompanying standalone Ind AS standalone Ind AS financial statements. The procedures
financial statements of NTPC Electric Supply Company selected depend on the auditor’s judgment, including
Limited (“the Company”), which comprise the Balance the assessment of the risks of material misstatement of
Sheet as at 31st March, 2017, and the Statement of Profit the standalone Ind AS financial statements, whether due
and Loss (including Other Comprehensive Income), the Cash to fraud or error. In making those risk assessments, the
Flow Statement and the Statement of Changes in Equity auditor considers internal financial control relevant to the
for the year then ended, and a summary of the significant Company’s preparation of the standalone Ind AS financial
accounting policies and other explanatory information statements that give a true and fair view in order to design
( herein after referred to as Standalone Ind AS Financial audit procedures that are appropriate in the circumstances.
Statements). An audit also includes evaluating the appropriateness of the
Management’s Responsibility for the Standalone Financial accounting policies used and the reasonableness of the
Statements accounting estimates made by the Company’s Directors, as
well as evaluating the overall presentation of the standalone
The Company’s Board of Directors is responsible for the Ind AS financial statements.
matters stated in Section 134(5) of the Companies Act,
We believe that the audit evidence we have obtained is
2013 (“the Act”) with respect to the preparation of these
sufficient and appropriate to provide a basis for our audit
standalone Ind AS financial statements that give a true and
opinion on the standalone Ind AS financial statements.
fair view of the financial position, financial performance
including other comprehensive income, cash flows and Opinion
changes in equity of the Company in accordance with the In our opinion and to the best of our information and
accounting principles generally accepted in India, including according to the explanations given to us, the aforesaid
the Indian Accounting Standards (Ind AS) prescribed under standalone Ind AS financial statements give the information
section 133 of the Act read with relevant rules issued required by the Act in the manner so required and give
thereunder. a true and fair view in conformity with the accounting
This responsibility also includes maintenance of adequate principles generally accepted in India including the Ind
accounting records in accordance with the provisions of AS, of the financial position of the Company as at 31st
the Act for safeguarding the assets of the Company and for March, 2017, and its financial performance including other
preventing and detecting frauds and other irregularities; comprehensive income, its cash flows and the changes in
selection and application of appropriate accounting equity for the year ended on that date.
policies; making judgments and estimates that are reasonable
Emphasis of Matters
and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating We draw attention to the following matters:
effectively for ensuring the accuracy and completeness of (a) Note – 1 ’Accounting Policies’ Part B related to basis
the accounting records, relevant to the preparation and of preparation of Financial Statements of the company
presentation of the standalone Ind AS financial statements based on Going Concern read alongwith Note No.
that give a true and fair view and are free from material 17 of the Notes to Financial Statements suggest that
misstatement, whether due to fraud or error. the parent company has taken over all the assets
Auditor’s Responsibility and liabilities on 01st day of April 2015, except Bank
Balances, Advance Taxes and Income Tax Provisions,
Our responsibility is to express an opinion on these at a historical cost carried in the books of accounts
standalone Ind AS financial statements based on our audit. on the date of transfer of such assets and liabilities of
We have taken into account the provisions of the Act, the company, and these conditions alongwith other
the accounting and auditing standards and matters which matters set forth in Note No. 17 indicate the material
are required to be included in the audit report under the uncertainty and that may cast significant doubt about
provisions of the Act and the Rules made thereunder. the Company’s ability to continue as a Going Concern.
We conducted our audit in accordance with the Standards However, the financial statements of the Company
on Auditing specified under Section 143(10) of the Act. have been prepared on a going concern basis for the
Those Standards require that we comply with ethical reasons stated in the said note.
requirements and plan and perform the audit to obtain Our opinion is not modified in respect of these matters.
33
A Maharatna Company
Report on Other Legal and Regulatory Requirements Government of India, provisions of sub-section (2)
1. As required by the Companies (Auditor’s Report) Order, of Section 164 of the Companies Act, 2013, are not
2016 (“the Order”) issued by the Central Government applicable to the Company;
in terms of Section 143(11) of the Act, we give in g) With respect to the adequacy of the internal
“Annexure I” a statement on the matters specified in financial controls over financial reporting of the
paragraphs 3 and 4 of the Order. Company and the operating effectiveness of such
2. We are enclosing our report in terms of Section 143(5) controls, refer to our separate Report in “Annexure
of the Act, on the basis of such checks of the books and III”.
records of the company as we considered appropriate g) with respect to the other matters to be included in
and according to the information and explanations the Auditor’s Report in accordance with Rule 11 of
given to us, in the Annexure-II on the directions and the Companies (Audit and Auditors) Rules, 2014, in
sub-directions issued by the Comptroller and Auditor our opinion and to the best of our information and
General of India. according to the explanations given to us:
3. As required by Section 143(3) of the Act, we report i. the Company has disclosed the impact of
that: pending litigations on its financial position
a) we have sought and obtained all the information in its standalone Ind AS financial statements
and explanations which to the best of our (Refer Note No. 21);
knowledge and belief were necessary for the ii. the Company did not have any long-term
purposes of our audit; contracts including derivative contracts for
b) in our opinion, proper books of account as which there were any material foreseeable
required by law have been kept by the Company losses;
so far as it appears from our examination of those iii. there were no amounts which were required
books; to be transferred to the Investor Education
c) the Balance Sheet, the Statement of Profit and and Protection Fund by the Company;
Loss, the Cash Flow Statement and Statement of iv. the company does not have any cash
Changes in Equity dealt with by this Report are in balance during the financial year under audit
agreement with the books of account; consequently, the disclosure requirement as
d) in our opinion, the aforesaid standalone Ind envisaged in Notification G.S.R 308(E) dated
AS financial statements comply with the Indian 30th March 2017 is not applicable to the
Accounting Standards prescribed under section Company.
133 of the Act read with relevant rule issued For P. R. KUMAR & CO.
thereunder; Chartered Accountants
e) The going concern matter described in sub- Firm Reg. No.: 003186N
paragraph (a) under the Emphasis of Matters
paragraph above, in our opinion, may have (RAHUL KATHURIA)
adverse effect on the functioning of the company; Partner
f) Being a Government Company, pursuant to M. NO. : 090657
the Notification No. GSR 463(E) dated 5th June Place: New Delhi
2015 issued by Ministry of Corporate Affairs, Date: 18th May, 2017
Annexure-I
ANNEXURE OF THE INDEPENDENT AUDITOR’S REPORT
(Referred to paragraph (1) under the heading of “Report on (iii) According to the information and explanations
Other Legal and Regulatory Requirements” of our report of provided to us, the Company has not granted any
even date) secured or unsecured loans to companies, firms,
(i) The company does not have the fixed assets during Limited Liability Partnerships or other parties covered
the financial year and consequently, clauses (i) of in the register maintained under section 189 of the
paragraph 3 of the Order are not applicable, Companies Act, 2013, consequently, provisions of sub-
clause (iii)(a), (b)&(c) of the Paragraph 3 of the Order
(ii) The company does not have any inventory and
are not applicable.
consequently, clauses (ii) of paragraph 3 of the Order
are not applicable. (iv) The Company has not given any loan, guarantee, security
34
A Maharatna Company
or made investment as stipulated under Sections 185 & to the company as the company is not engaged in the
186 of the Companies Act, consequently, clause (iv) of distribution of the electricity.
the Paragraph 3 of the Order is not applicable. (vii) (a) According to the information and explanations
(v) According to the information and explanation given given to us, the liability related to Income Tax is
to us, the Company has not accepted deposits as being discharged by its Holding Company, i.e., M/s
per the provisions of the Companies Act, 2013 and NTPC Limited as whole of the operations of the
consequently, directives issued by the Reserve Bank of company has been transferred, however, no other
India; the provisions of section 73 to 76 or any other undisputed Statutory Dues is pending as on March
relevant provisions of the Companies Act, 2013 and the 31, 2017.
Rules framed there under are not applicable. (b) According to the information and explanations
(vi) The provisions of the maintenance of the cost records given to us, there are disputed statutory dues,
as has been specified under sub-section (1) of Section which have not been deposited as on March 31,
148 of the Companies Act, 2013, are not applicable 2017 as given below:
Statute Nature of Dues Amount Forum where disputes are pending

(` in Lacs)
Income Tax Act, 1961 Tax Demanded u/s 143 (3) 1,038.10 ITAT Delhi (Appeal Effect Pending and no
(2008-09) appeal by Deptt to High Court)
Income Tax Act, 1961 Tax Demanded u/s 143 (3) 1,420.93* CIT (Appeals) Delhi
(FY 2010-11)
Income Tax Act, 1961 Tax Demanded u/s 143 (3) 1,451.87 CIT (Appeals) Delhi
(FY 2012-13)
Income Tax Act, 1961 Tax Demanded u/s 143 (3) 1,842.80 CIT (Appeals) Delhi
(FY 2013-14)
Finance Act, 1994 Service Tax on Deposit Works 99,371.50 CESTAT, Delhi
(2006-07 to 2010-11)
Finance Act, 1994 Service Tax on Deposit Works 6,255.99 CESTAT, Delhi
(2011-12)
Finance Act, 1994 Service Tax on Deposit Works 376.47 CESTAT, Delhi
(2012-13)
* The demand is netted off with demand paid under protest.
(viii) In our opinion and according to the information to the information and explanations given to us, clause
and explanations given to us, the company has not 3 (xi) of the Order is not applicable.
defaulted in repayment of loans or borrowing to a (xii) The company is not a Nidhi Company, hence in
financial institution, bank, government or dues to a our opinion and according to the information and
debenture holder, hence provisions under clause (viii) explanations given to us, clause 3 (xii) of the Order is
of the Paragraph 3 of the Order is not applicable to the not applicable.
company.
(xiii) The company has transacted with the related party,
(ix) According to the information and explanations given to i.e., M/s NTPC Limited (Parent Company) as per the
us, the company has not raised moneys by way of initial provisions of the Section 177 and 188 of the Companies
public offer (including debt instruments) and no term Act, 2013, however, such transactions have been
loan has been raised during the year, hence provisions carried out at arm’s length price as per the information
under clause (ix) of the Paragraph 3 of the Order is not and explanations provided to us. Disclosure of such
applicable to the company. transactions as prescribed by the Ind AS – 24 (Related
(x) In our opinion and according to the information and Party Disclosures) has been done as per the Note No.
explanations given to us, no fraud has been noticed 20 to the Financial Statements.
or reported by or upon the company during the year, (xiv) The company has not made any preferential allotment
hence the provisions of clause (x) of the Paragraph (3) or private placement of shares or fully or partly
of the Order is not applicable to the company. executable debentures during the year under review,
(xi) The company has not paid or provided for the accordingly, in our opinion and according to the
managerial remuneration during the financial year information and explanations given to us, clause 3 (xiv)
under audit, accordingly, in our opinion and according of the Order is not applicable.
35
A Maharatna Company
(xv) The company has not entered into any non cash For P. R. KUMAR & CO.
transactions with directors or persons connected with Chartered Accountants
him, accordingly, in our opinion and according to the Firm Reg. No.: 003186N
information and explanations given to us, clause 3 (xv)
of the Order is not applicable. (RAHUL KATHURIA)
(xvi) The company is not required to be registered under Partner
section 45-IA of the Reserve Bank of India Act, 934, M. NO. : 090657
accordingly, in our opinion and according to the Place: New Delhi
information and explanations given to us, clause 3 (xvi) Date: 18th May, 2017
of the Order is not applicable.
Annexure-II
ANNEXURE OF THE INDEPENDENT AUDITOR’S REPORT

(Referred to paragraph (2) under the heading of “Report on Other Legal and Regulatory Requirements” of our report of
even date)
Sl. Query Response
No.
1. Whether the Company has clear title/lease deeds for The Company doesn’t have any leasehold/freehold land,
freehold and leasehold land respectively? If not, please hence not applicable.
state the area of freehold and leasehold land for which
title/lease deeds are not available.
2. Whether there are any cases of waiver/write off of There were no cases of waiver / write-off of debts/
debts/loans/interest etc. If yes, the reasons thereof and loans/interest.
amount involved.
3. Whether proper records are maintained for inventories There are no cases of inventories lying with third parties
lying with third parties and assets received as gift/ & assets received as gift from Govt. or other authorities.
grant(s) from the Government or other authorities.
For P. R. KUMAR & CO.

Firm Reg. No.: 003186N
(RAHUL KATHURIA)
Place: New Delhi Partner
Date: 18th May, 2017 M. NO. : 090657
Annexure - III
ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONE
FINANCIAL STATEMENTS OF NTPC ELECTRIC SUPPLY COMPANY LIMITED
(Referred to paragraph {3(g)} under the heading of “Report Management’s Responsibility for Internal Financial Controls
on Other Legal and Regulatory Requirements” of our report The Company’s management is responsible for establishing
of even date) and maintaining internal financial controls based on the
[Report on the Internal Financial Controls under Clause (i) internal control over financial reporting criteria established
of Sub-section 3 of Section 143 of the Companies Act, 2013 by the Company considering the essential components of
(“the Act”)] internal control stated in the Guidance Note on Audit of
We have audited the internal financial controls over financial Internal Financial Controls Over Financial Reporting issued
reporting of M/s NTPC Electric Supply Company Limited by the Institute of Chartered Accountants of India. These
(“the Company”) as of March 31, 2017 in conjunction with responsibilities include the design, implementation and
our audit of the standalone financial statements of the maintenance of adequate internal financial controls that
Company for the year ended on that date. were operating effectively for ensuring the orderly and
36
A Maharatna Company
efficient conduct of its business, including adherence detail, accurately and fairly reflect the transactions and
to company’s policies, the safeguarding of its assets, the dispositions of the assets of the company; (2) provide
prevention and detection of frauds and errors, the accuracy reasonable assurance that transactions are recorded as
and completeness of the accounting records, and the timely necessary to permit preparation of financial statements in
preparation of reliable financial information, as required accordance with generally accepted accounting principles,
under the Companies Act, 2013. and that receipts and expenditures of the company are
being made only in accordance with authorisations of
Auditors’ Responsibility management and directors of the company; and (3) provide
Our responsibility is to express an opinion on the Company’s reasonable assurance regarding prevention or timely
internal financial controls over financial reporting based on detection of unauthorised acquisition, use, or disposition
our audit. We conducted our audit in accordance with the of the company’s assets that could have a material effect on
Guidance Note on Audit of Internal Financial Controls over the financial statements.
Financial Reporting (the “Guidance Note”) and the Standards
on Auditing, to the extent applicable to an audit of internal Inherent Limitations of Internal Financial Controls over
financial controls, both issued by the Institute of Chartered Financial Reporting
Accountants of India. Those Standards and the Guidance Because of the inherent limitations of internal financial
Note require that we comply with ethical requirements and controls over financial reporting, including the possibility
plan and perform the audit to obtain reasonable assurance of collusion or improper management override of controls,
about whether adequate internal financial controls over material misstatements due to error or fraud may occur
financial reporting was established and maintained and if and not be detected. Also, projections of any evaluation
such controls operated effectively in all material respects. of the internal financial controls over financial reporting
Our audit involves performing procedures to obtain audit to future periods are subject to the risk that the internal
evidence about the adequacy of the internal financial financial control over financial reporting may become
controls system over financial reporting and their operating inadequate because of changes in conditions, or that the
effectiveness. Our audit of internal financial controls over degree of compliance with the policies or procedures may
financial reporting included obtaining an understanding of deteriorate.
internal financial controls over financial reporting, assessing Opinion
the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of In our opinion, the Company has, in all material respects,
internal control based on the assessed risk. The procedures an adequate internal financial controls system over financial
selected depend on the auditor’s judgement, including reporting and such internal financial controls over financial
the assessment of the risks of material misstatement of the reporting were operating effectively as at March 31, 2017,
financial statements, whether due to fraud or error. based on the internal control over financial reporting criteria
established by the Company considering the essential
We believe that the audit evidence we have obtained is components of internal control stated in the Guidance
sufficient and appropriate to provide a basis for our audit Note on Audit of Internal Financial Controls Over Financial
opinion on the Company’s internal financial controls system Reporting issued by the Institute of Chartered Accountants
over financial reporting. of India.
Meaning of Internal Financial Controls over Financial
Reporting For P. R. KUMAR & CO.
A company’s internal financial control over financial reporting Chartered Accountants
is a process designed to provide reasonable assurance Firm Reg. No.: 003186N
regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in (RAHUL KATHURIA)
accordance with generally accepted accounting principles. Partner
A company’s internal financial control over financial M. NO. : 090657
reporting includes those policies and procedures that (1) Place: New Delhi
pertain to the maintenance of records that, in reasonable Date: 18th May, 2017
37
A Maharatna Company
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION

143(6)(B) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF NTPC ELECTRIC
SUPPLY COMPANY LIMITED FOR THE YEAR ENDED 31 MARCH 2017
The preparation of financial statements of NTPC Electric Supply Company Limited for the year ended 31 March 2017 in
accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility
of the management of the company. The Statutory Auditors appointed by the Comptroller and Auditor General of India
under Section 139(5) of the Act is responsible for expressing opinion on the financial statements under Section 143 of the
Act based on independent audit in accordance with the standards on auditing prescribed under Section 143(10) of the
Act. This is stated to have been done by them vide their revised Audit Report dated 06 July 2017 which supersedes their
earlier Audit Report dated 18 May 2017.
I, on behalf of the Comptroller and Auditor General of India, have decided not to conduct the supplementary audit of the
financial statements of NTPC Electric Supply Company Limited for the year ended 31 March 2017 under Section 143(6)(a)
of the Act.
For and on the behalf of the

Comptroller and Auditor General of India
(Ritika Bhatia)
Principal Director of Commercial Audit &
Ex-officio Member, Audit Board-III,
New Delhi
Place: New Delhi
Date: 20th June, 2017
38
A Maharatna Company
NTPC VIDYUT VYAPAR NIGAM LIMITED

(A wholly owned subsidiary of NTPC Limited)
Directors’ Report
To increased by 25.88% and margins increased by 29.04% over
Dear Members, previous financial year 2015-16.
Your Directors have immense pleasure in presenting the BUSINESS INITIATIVES

Fifteenth Annual Report on the working of the Company The Government of India designated your Company as the
for the financial year ended on 31st March 2017 together Nodal Agency for Phase I of Jawaharlal Nehru National
with Audited Financial Statement, Auditors’ Report and Solar Mission (JNNSM) with a mandate for purchase of
Review by the Comptroller & Auditor General of India for power from the solar power projects connected to grid at
the reporting period. 33 KV and above, at tariff regulated by CERC and for sale of
such power, bundled with the power sourced from NTPC
FINANCIAL RESULTS coal power stations to Distribution Utilities under Phase
(` in Crore) I of JNNSM which envisages setting up of 1000 MW solar
capacity. As on March 31, 2017 the total commissioned
2016-17 2015-16 capacity under the Scheme of Batch I of Phase I of JNNSM
Total Revenue 5261.16 4040.95 is 733 MW.
Total Expenses 5142.85 3960.68 During the Financial Year 2016-17, a total of 5921 MUs of
Profit/(Loss) before Tax 118.31 80.27 bundled solar power (including 1114 MUs of Solar Power)
have been supplied to Discoms/ Utilities of the states of
Tax expenses 41.88 28.31 Rajasthan, Punjab, Maharashtra, Andhra Pradesh, Uttar
Profit/(Loss) for the year 76.43 51.96 Pradesh, Tamil Nadu, Karnataka, Assam, West Bengal, Odisha,
Telangana, Chhattisgarh and Damodar Valley Corporation.
DIVIDEND
Your Company has been designated as the nodal agency
Your Directors have recommended a dividend of `30 Crore
for cross border trading of power with Bangladesh, Bhutan
@ `15 per equity share on the face value of fully paid-up
and Nepal. As per the Power Purchase Agreement (PPA) for
equity share capital of `10 each, for the financial year 2016-
supply of 250 MW power for 25 years from NTPC stations,
17. The dividend shall be paid after your approval at the
signed between your Company and Bangladesh Power
Annual General Meeting.
Development Board (BPDB), power is being supplied by
ENERGY TRADING AND OTHER BUSINESS the Company to Bangladesh from Oct’ 2013. Further PPA
In accordance with Central Electricity Regulatory Commission has been signed between BPDB and your Company on
(CERC) notification, your Company has a trading Licensee March 15, 2016 and back to back Power Sale Agreement
under Category I (highest category). (PSA) has also been signed with Tripura State Electricity
Corporation Limited (TSECL) for supply of 100 MW power
In the Financial Year 2016-17, your Company achieved under radial mode from 2016. Power supply to BPDB from
highest ever power trading volume of 15861 million units Tripura commenced from March 17, 2016. About 2467 MUs
(MUs) apart from Renewable Energy Certificates (RECs) of energy has been supplied in the financial year 2016-17.
equivalent to 68 MUs. PPA/PSA for additional 60 MW Power to Bangladesh from
During the financial year under review, your Company has Tripura has been signed and power flow started from April’
earned a margin of `86.17 Crore from trade of 15861 MUs 17.
including 5921 MUs traded under solar & thermal bundled PPA was signed between your Company and Nepal Electricity
power, 577 MUs traded under SWAP arrangements, 3592 Authority (NEA) for supply of upto 80MW power through
MUs under bilateral trade, 2632 MUs traded through newly commissioned 400kV Muzaffarpur - Dhalkebar A/C
exchange and 3139 MUs traded under Cross Border line under radial mode from Indian Market. The Power
Trading, as compared to margin of `66.78 Crore from trade supply commenced on February 18, 2016. Further PPA was
of energy of 12600 MUs including 5789 MUs traded under signed on December 22, 2016 between the Company and
solar & thermal bundled power, 1092 MUs traded under NEA for supply of upto 160MW power from January to
SWAP arrangements, 2416 MUs under bilateral trade, 1342 May 2017 to Nepal through 400 kV Muzafferpur-Dhalkabar
MUs traded through exchange and 1961 MUs traded under transmission line presently charged at 132 kV. About 672
Cross Border Trading. The overall volume of energy traded MUs of energy has been supplied in financial year 2016-17
by the Company during the financial year 2016-17 has to Nepal.
Subsidiary Company - NTPC Vidyut Vyapar Nigam Limited
39
A Maharatna Company
Your Company has excelled in many fields including Remuneration of Managerial Personnel) Rules, 2014, the
expanding customer base, selling captive power, selling Company has appointed M/s Agarwal S. & Associates, a
power of Independent Power Producers (IPPs), entering firm of Company Secretaries in Practice to undertake the
into power banking arrangement, trading of Power and REC Secretarial Audit of the Company for the financial year
on the platform of Power Exchange(s) etc. The customer 2016-17. The Report of the Secretarial Auditors is enclosed
base of the Company has increased to more than 100 at Annexure-II.
customers including state government utilities, private Secretarial Auditors have expressed their observation on
power utilities, IPPs and captive power generators in all five appointment of Independent Directors. The Management
regions of India. reply to the Secretarial Auditors observations are as under:
FIXED DEPOSITS Secretarial Auditors observation:
The Company has not accepted any fixed deposit during During the Financial year, the composition of the Board
the financial year ended on 31st March 2017. & committees of the Board should be in compliance with
the provisions of the Companies Act, 2013 with respect to
appointment of Independent Directors & consequential
Management Discussion and Analysis is enclosed at non-compliances thereof.
Annexure-I.
Note: The Ministry of Corporate Affairs vide its notification
AUDITORS’ REPORT dated 5th July, 2017, has exempted wholly owned unlisted
The Comptroller and Auditor General of India (C&AG) public subsidiary companies from appointing Independent
had appointed M/s S.S. Kothari Mehta & Co., Chartered Directors. In view of the aforesaid notification NVVNL is not
Accountants as Statutory Auditors of the Company for the required to appoint Independent Directors. The above said
financial year 2016-17. observation is retained as it pertains to financial year prior
to aforesaid notification.
The Statutory Auditors of the Company have given
unqualified report on the financial statements of the Management reply
Company for the financial year 2016-17. NTPC Limited, the holding company, by virtue of Maharatna
REVIEW OF ACCOUNTS BY THE COMPTROLLER & AUDITOR powers, and previously Navratna powers, in order to
GENERAL OF INDIA achieve its corporate aims, formed your Company, as a
wholly owned subsidiary. As per provisions of Articles of
The Comptroller and Auditor General (C&AG) of India, Association of your Company, all Board level appointments
through letter dated 12 July 2017 communicated that they are made by NTPC Limited.
have conducted a supplementary audit of the financial
statements of your Company for the year 31st March 2017 In case of a Government Company, the independent
under section 143 (6) (a) of the Act. On the basis of their Directors are to be appointed by the Government of India.
audit noting significant has come to their Knowledge which NTPC Limited, the holding company, has been writing letters
would give rise to any comment upon or supplement to to the Department of Public Enterprises, Government of
statutory auditors’ report. As advised by the office of the India, requesting to authorize NTPC Limited for nominating
C&AG, the comments of C&AG for the year 2016-17 are Independent Directors on the Board of its subsidiaries. The
being placed with the report of Statutory Auditors of your reply on the same is awaited.
company elsewhere in this Annual Report. Your Company, being the wholly owned unlisted public
subsidiary of NTPC Limited, is now exempted to appoint
PARTICULARS OF EMPLOYEES Independent Directors. The same has also been explained
As per Notification dated June 5, 2015 issued by the by the Secretarial Auditors in Note to their observation.
Ministry of Corporate Affairs, the Government Companies DIRECTORS’ RESPONSIBILITY STATEMENT
are exempted to comply with the provisions of Section 197
As required under Section 134 (3) (c) and Section 134(5) of
of the Companies Act, 2013 and corresponding rules of
the Companies Act, 2013, your Directors confirm that:
Chapter XIII. Your Company being a Government company
is not required to include aforesaid information as a part of (i) in the preparation of the annual accounts, the
the Directors’ Report. applicable accounting standards had been followed
along with proper explanation relating to material
SECRETARIAL AUDITORS departures;
Pursuant to the provisions of Section 204 of the Companies (ii) the Directors had selected such accounting policies
Act, 2013 and the Companies (Appointment and and applied them consistently (except where newly
40
A Maharatna Company
issued accounting standards requires a change) and Declaration of Independent Director.

made judgments and estimates that are reasonable and Your Company is not having independent Directors during
prudent so as to give a true and fair view of the state the financial year 2016-17. Hence, the statement on
of affairs of the company at the end of the financial declaration by Independent directors under section 149(6)
year 2016-17 and of the profit of the company for that of the Companies Act, 2013, is not included.
period;
Now the Ministry of Corporate Affairs vide its notification
(iii) the Directors had taken proper and sufficient care dated 5th July, 2017, has exempted wholly owned unlisted
for the maintenance of adequate accounting records public subsidiary companies from appointing Independent
in accordance with the provisions of the Companies Directors. In view of the aforesaid notification your Company
Act, 2013 for safeguarding the assets of the company is not required to appoint Independent Directors.
and for preventing and detecting fraud and other
irregularities; AUDIT COMMITTEE
(iv) the Directors had prepared the annual accounts on a Your Company has an Audit Committee of the Board
going concern basis. comprising of 3 Directors. During the financial year under
(v) the directors had devised proper system to ensure review 3 meetings of the Audit Committee were held on the
compliance with the provisions of all applicable laws following dates:
and that such system was adequate and operating
Date of Audit Total strength of No. of Directors
effectively.
Meeting Committee the Directors present
BOARD OF DIRECTORS
May 17, 2016 3 2
The Board of Directors of the Company comprises of
Shri Gurdeep Singh, Chairman (DIN: 00307037), Shri A. K. July 20, 2016 3 3
Jha, Director (DIN: 03590871), Shri Kulamani Biswal (DIN: September 21, 2016 3 2
03318539), Shri K.K. Sharma, Director (DIN: 03014947) and
Smt. A. Sathyabhama, Director (DIN: 06904946). The details of the number of Audit committee meetings
attended by each director, during the financial year under
In accordance with the provisions of Companies Act, 2013, review are as follows:
Shri Kulamani Biswal, Director shall retire by rotation at
this Annual General Meeting of your Company and, being Name of the Director Designation Attendance during
eligible, offers himself for reappointment. 2016-17
Number of meetings of the Board Shri Kulmani Biswal Chairman 3 out of 3
During the financial year under review, 6 meetings of the Shri K.K. Sharma Director 2 out of 3
Board of Directors were held on the following dates:
Mrs. A. Sathyabhama Director 2 out of 3
Date of Board Total strength No. of Directors
Meeting of the Directors present CORPORATE SOCIAL RESPONSIBILITY
May 17, 2016 5 4 In compliance with the provisions of Section 135 of the
July 20, 2016 5 5 Companies Act, 2013 and the Companies (Corporate
September 21, 2016 5 4 Social Responsibility Policy) Rules, 2014, your Company
October 21, 2016 5 4 has constituted the Corporate Social Responsibility (CSR)
December 14, 2016 5 3 Committee consisting of 3 directors.
February 13, 2017 5 4 During the financial year under review 3 meetings of the CSR
The details of the number of meetings attended, during the committee were held on the following dates:
financial year under review, by each director are as follows: Date of CSR Total strength of No. of Directors
Committee Meeting the Directors present
Name of the Director Designation Attendance during
2016-17 May 17, 2016 3 3
Shri Gurdeep Singh Chairman 6 out of 6 October 21, 2016 3 3
Shri A.K. Jha Director 6 out of 6 March 20, 2017 3 3
Shri Kulamani Biswal Director 6 out of 6 The details of the number of CSR committee meetings
Shri K.K. Sharma Director 4 out of 6 attended by each director, during the financial year under
Mrs. A. Sathyabhama Director 2 out of 6 review are as follows:
41
A Maharatna Company
Name of the Director Designation Attendance during financial statement relates and the date of this Directors’
2016-17 Report, which affects the financial position of your Company.
Shri Gurdeep Singh Chairman 3 out of 3 EXTRACT OF ANNUAL RETURN
Shri A.K. Jha Director 3 out of 3 As per requirement of Section 92 (3), Section 134 (3) of
Shri Kulamani Biswal Director 3 out of 3 the Companies Act, 2013 and Rule 12 of the Companies
As per the requirement of Section 135 of the Companies (Management and Administration) Rules, 2014, an extract of
Act, 2013 and Rule 8 (1) of the Companies (Corporate the Annual Return in form MGT-9 is given under Annexure-IV.
Responsibility Policy) Rules, 2014 the annual report on CSR PARTICULAR OF CONTRACTS OR ARRANGEMENTS WITH
activities is at Annexure-III. RELATED PARTIES
Disclosure on the Nomination and Remuneration Committee. As per requirement of Section 188 (2) of the Companies
In compliance with the provisions of Section 178 of the Act, 2013 and Rule 8 of the Companies (Accounts) Rules,
Companies Act, 2013 and the Companies (Meetings of Board 2014, particulars of contracts or arrangements, during the
and its Powers) Rules, 2014, your Company has constituted financial year 2016-17, with related parties referred to in
the Nomination and Remuneration Committee consisting of Section 188 (1) of the Companies Act, 2013 in form AOC-2 is
3 directors. given under Annexure-V.
As per Notification dated June 5, 2015 issued by the CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
Ministry of Corporate Affairs, the Government Companies FOREIGN EXCHANGE EARNING AND OUTGO
are exempted to comply with the provisions of sub-sections Being a trading company the norms for conservation of
2, 3 and 4 of Section 178 of the Companies Act, 2013. Your energy and technology absorption are not applicable to
Company being a Government company is not required to your Company.
formulate and disclose policy, as a part of the Directors’
During the financial year under review your Company
Report, as envisaged.
has earned `848.65 crore from trade of power in foreign
During the financial year under review one meeting of the currency as compared to ` 446.17 crore foreign currency
Nomination and Remuneration Committee were held on the earned during the financial year 2015-16. An expenditure
following date: of `0.04 crore, during the financial year under review, in
Date of the Total strength of No. of Directors foreign currency has been incurred mainly towards travelling
Nomination and the Directors present of employees and other payments/ reimbursements as
Remuneration compared to `0.09 crore expenses incurred towards
Committee travelling of employees during the financial year 2015-16.
October 21, 2016 3 3 ACKNOWLEDGMENT
The detail of number of the Nomination and Remuneration The Board of Directors of your Company wishes to place on
Committee meeting attended by each director, during the record their appreciation for the support and co-operation
financial year under review is as follows: extended by NTPC Limited, the Ministry of Power and the
Name of the Director Designation Attendance during Ministry of New and Renewable Energy of Government of
2016-17 India, the Central Electricity Regulatory Commission, the
Shri A.K. Jha Chairman 1 out of 1 valued customers of the Company, various State Power
Utilities, Statutory Auditors, Office of the Comptroller and
Shri Kulamani Biswal Director 1 out of 1
Auditor General of India, Bankers of the Company and the
Shri K.K. Sharma Director 1 out of 1
untiring efforts made by all employees to ensure that the
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS company continues to perform and excel.
UNDER SECTION 186 For and on behalf of the Board of Directors
Your Company has not given any loans or guarantees or Sd/-
made any investment covered under the provisions of
(GURDEEP SINGH)
Section 186 of the Companies Act, 2013.
CHAIRMAN
MATERIAL CHANGES AND COMMITMENTS
DIN: 00307037
No material changes and commitments, have taken place
Place: New Delhi
between financial year ended March 31, 2017, to which the
Date: July 27, 2017
42
A Maharatna Company
Annexure-I
INDUSTRY STRUCTURE AND DEVELOPMENTS The trading of Power in India*
Trading is an essential tool, which plays an important role (i) Bilateral Trading 35 BU
in optimization of resources by utilizing the surpluses of (ii) Bilateral Direct 21 BU
seasons or time of day of a state / utility to meet the unmet (iii) Through Power Exchange 40 BU
demand / deficits of the same or another state / utility/
Total 96 BU
consumers by way of sale/purchase or swap arrangements.
Power traders play a key role for identification of such *Source: CERC (2016-17).
sources of surplus (supply) and deficits (consumers’), tie up STRENGTH AND WEAKNESS
open access, and arrange scheduling for matching supply
Your Company’s strength lies in its association with a strong
and demand at optimum cost charging a very small margin
promoter viz. NTPC Limited having formidable network,
of their own.
established rapport, credibility with potential buyers &
CERC has fixed a ceiling trading margin for short term trade sellers and backed with professional manpower from NTPC
at 7 paise per kWh in case the sale price is exceeding ` 3 and trading capabilities built over the years.
per kWh and 4 paise per kWh where sale price is less than
Your Company is exposed to credit risk due to buyers’
or equal to ` 3 per kWh. However, Transactions through
inability to make timely payments without strong payment
power swapping/ banking are out of purview of the CERC
security mechanism in place.
Regulations for Short Term Trading.
During the last four years, 43 traders have obtained licenses OPPORTUNITIES AND THREATS
for serving the needs of various clients. The traders are issued The inter-regional power transfer capacity has increased
license under categories I, II or III depending on the volume to 75050 MW (*Source: Ministry of Power website). This
of units proposed to be traded and their net worth. During is expected to provide considerable opportunities for
the financial year 2016-17 out of the electricity generation enhancement of trading volumes. With the passage of time
of approximately 1158 Billion units, approximately 96 Billion short term power market has shifted from a sellers’ market
units were traded, representing 8.29% of trading to total to a buyers’ market due to large availability of merchant
generation. power and low demand from Distribution utilities. Also with
The short term power market volume increased to 96 BUs the introduction of DEEP e-bidding portal the market has
in the financial year 2016-17 as compared to 94 BUs during become very competitive.
financial year 2015-16, registering a growth of 2.13%. During The financial health of Distribution companies (DISCOMs)
the financial year 2016-17 there is substantial growth in is very poor. Government has come up with Ujwal Discom
the volume of power exchange by 17.65% as compared Assurance Yojana (UDAY scheme) to provide financial
to previous year. Despite increase in volume of Short turnaround and revival of Power DISCOMs. Many states
term market, the volume transacted in bilateral direct and have joined UDAY scheme and with the implementation of
bilateral trading decreased by 12.5% and 2.77% respectively UDAY scheme, the financial position of the State DISCOMS is
over the previous year. expected to improve.
Structure of Power Market in India* In recent times with the increase in entry of number of
private traders the trading market has seen increased
(i) Long –Term (89.72 %) 1039 BU
competition leading to power being traded without
(ii) Power Trading (8.29%) 96 BU
proper back-to-back payment security mechanism, making
(iii) Balancing Market (UI) (1.99 %) 23 BU transactions prone to higher payment risk. The financial
Total 1158 BU position of many State DISCOMs / Utilities is also a cause for
concern for your Company
43
A Maharatna Company
OUTLOOK Your Company being the wholly owned subsidiary of NTPC

Your Company was designated Nodal Agency for Cross Limited is governed by the framework of Risk Management
Border trading of power with Bangladesh, Bhutan and in NTPC Limited. Key risks are regularly monitored through
Nepal. The PPA between your Company and BPDB for reporting of key performance indicators of identified risks.
supply of 250 MW power from NTPC stations for 25 years
INTERNAL CONTROL
was signed on February 28, 2012. The Power supply to
Bangladesh commenced from October 5, 2013. Since Your Company has adequate internal control systems and
2013, the cross border trading business of the Company procedures in place commensurate with the size and
has grown significantly. Existing Power supply to BPDB from nature of its business. Your Company has adopted the
Tripura and power supply to Nepal from Indian market has internal control system of its holding company viz. NTPC
increased the visibility of the company in the Power market Limited. A well defined internal control framework has
of neighbouring countries. Guidelines on Cross Border been developed identifying key controls. The authorities
trade of electricity have been issued by Ministry of Power vested in various levels are exercised within framework
and further the CERC regulations expected in financial year of appropriate checks and balances. Effectiveness of
2017-18, will bring transparency in the market and will also all checks and balances and internal control systems is
result in growth of Cross Border trade of electricity. reviewed during internal audit carried out by Internal Audit
Department of NTPC Limited. An independent internal
Your Company is also designated Nodal Agency under
audit is also carried out by experienced firm of Chartered
JNNSM Phase-I for buying power from solar power
Accountants in close co-ordination with departments of the
developers in India and selling to distribution utilities
Company and Internal Audit Department of NTPC Limited.
after bundling with thermal power from NTPC coal based
The Internal Audit Reports are regularly reviewed by the
stations. The business of selling bundled power to Discoms
Audit Committee of the Board of Directors.
commenced from financial year 2011-12 and has grown
with progressive commissioning of capacities. PERFORMANCE DURING THE YEAR
Your Company is exploring new avenues for enhancement Operations
of future business in the Cross Border Trading of Power,
Your Company has been issued license under category “I”
Renewable Power Sector and trading of energy certificates
which allows trading of 1000 million units and above every
(ESCerts) under Perform Achieve and Trade Scheme, cycle
year without any upper limit.
I started by Ministry of Power, Government of India and
expects to consolidate its business in these segments for The details of the energy traded by the Company are as
follows:
achieving long term growth.
RISKS, CONCERNS AND THEIR MANAGEMENT Trading of Power 2016-17 2015-16
Your Company is trading power on back-to-back basis, with Million units
the approval of the Board. It means terms & conditions, both
Bilateral Trading 3592 2416
for purchase/sale are on back-to-back basis. Deviation, if
any, is reported to Board. Power SWAP Arrangements 577 1092
The trading margin capped by CERC for electricity trading Solar Bundled Power 5921 5789
limits revenues of trading companies. The risk gets further Cross Border Trading 3139 1961
enhanced due to large number of private players offering Trading through exchange 2632 1342
lower trading margin than capped trading margin. Your Total 15861 12600
Company continues to focus on increasing its market
share in power trading with emphasis on back-to-back During the Financial Year 2016-17, your Company traded
arrangements in order to mitigate risks while making 15861 MUs of power, which includes 5921 MUs of bundled
endeavors to increase the business. solar power under JNNSM. The overall volume of power
traded by Company has increased by 25.88% over last year.
44
A Maharatna Company
Volume Traded by NVVN (MU)
Turnover (Rs Cr)
20000 6000
5273
18000
5000
16000
3888 4055 15861
14000 3532 4000
3075
12000 12600 3000
2379
10000 10421
9321 2000
8000 8529 8381
6000 1000
4000
0
2000
0 -1000
2011 -12
2012 -13
2013 -14
2014 -15
2015 -16
2016 -17
In the past three years your company has developed a ` in Crore

good customer base and has served over 100 customers
including State Government/Private Power Utilities, Captive 2016-17 2015-16
Power Generators etc. in all five regions in the country. Sales
Energy 5272.71 4054.58
MoU RATING & PERFORMANCE
Rebate on energy sale (48.87) (34.56)
The performance of your Company in terms of Memorandum Other income 37.32 20.93
of Understanding (MoU) signed with the NTPC, the holding
Total 5261.16 4040.95
company for the financial year 2015-16 has been rated
as “Excellent” by Department of Public Enterprises. Your
Company have successfully accomplished targets, under the The Total operating expenses of the Company are as follows:
MoU 2016-17, of % Increase in Power Exchange customers -
over previous year (160% was achieved against the MoU ` in Crore
target of 10%). Your Company has also developed the
2016-17 2015-16
Portal for Solar Power developers (SPD’s) on January 11,
2017 against the MoU target of January 31, 2017. Also % Purchase of energy 5186.53 3987.80
Reconciliation of the Billed Amount for April- Dec 2016 was Rebate from sellers (74.98) (51.06)
89% against the MoU target of 85%. Employee benefits expense 14.58 13.97
Financial Performance Other expenses 11.29 9.79

Total operating expenses 5137.42 3960.50
The revenue of your Company comprises of mainly sales
from Energy traded and it contributes to 98% of total The total expenses including operating expenses of the
Company are as follows:-
revenue.
45
A Maharatna Company
` in Crore The increase in Total Current Assets was mainly due to

increase in other financial assets on account of unbilled
2016-17 2015-16
revenues of `524.23 Crore as on March 31, 2017 against
Total operating expenses 5137.42 3960.50 `325.22 Crore as on March 31, 2016. As on March 31,
Finance cost 5.33 0.05 2017 trade receivables have reduced to `539.70 Crore
Depreciation, amortization 0.10 0.13 as compared to `558.75 Crore as on March 31, 2016. The
and impairment expense receivables are equivalent to 37 days of billing as on March
Total expenses including 5142.85 3960.68 31, 2017 against 51 days of billing as on March 31, 2016.
operating expenses The major amount of receivables has now been recovered
The depreciation cost as compared to total expense from various buyers and balance amount would be realized
is negligible since the fixed assets in the Company are soon.
represented by furniture and fixtures, EDP machines and
Current Liabilities
software etc. and the Gross Block was of the order of `0.34
Crore as on 31.3.2017. During the financial year 2016-17, Current Liabilities have
During the year the Company earned profit after tax of ` increased to `1132.65 Crore as compared to `1019.91
76.43 Crore registering an increase of 47.09% over the Crore in the financial year 2015-16, mainly on account of
previous year. increase in trade payables.
` in Crore
`in Crore
2016-17 2015-16
31.03.2017 31.03.2016
Profit before tax 118.31 80.27
Trade payables 850.88 643.03
Tax expenses 41.88 28.31
Other financial liabilities 255.08 330.63
Profit for the year 76.43 51.96
Dividend Other current liabilities 4.08 2.09
Your Directors have recommended a dividend of `30 Crore Provisions 18.32 41.23
@ `15 per equity share on the face value of fully paid-up Current tax liabilities (net) 4.29 2.93
equity share capital of `10 each, for the financial year 2016- Total Current Liabilities 1132.65 1019.91
17. The dividend shall be paid after your approval at the
Annual General Meeting. Cash Flow Statement
Reserves & Surplus ` in Crore
During the financial year 2016-17, a sum of ` 79 Crore have
been added to General Reserve as compared to `26 Crore 2016-17 2015-16
in the previous year. Opening cash and cash 24.35 31.42
Current Assets equivalents
The current assets at the end of the financial year 2016- Net cash from operating 177.15 (12.47)
17 were `1415.40 Crore as compared to `1225.38 Crore activities
in financial year 2015-16 registering an overall increase of Net cash from investing 6.37 9.40
15.51%. activities
` in Crore Net cash flow from financing (24.07) (4.00)
activities
31.3.2017 31.3.2016
Net change in cash and 159.45 (7.07)
Trade receivables 539.70 558.75
cash equivalents
Cash and cash equivalents 183.80 24.35
Closing cash and cash 183.80 24.35
Other bank balances 164.19 310.50 equivalents
Other financial assets 525.21 327.73
The closing cash and cash equivalent for the financial year
Other current assets 2.50 4.05 ended March 31, 2017 has increased from `24.35 Crore
Total Current Assets 1415.40 1225.38 in the previous year to `183.80 Crore in the current year,
mainly due to heavy collection from our customers on
March 31, 2017.
46
A Maharatna Company
Financial Indicators basis from holding company viz. NTPC Limited. In line with
the requirement of Sexual Harassment of Women at the
The various performance indicators for the financial year Workplace (Prevention, Prohibition & Redressal) Act, 2013,
2016-17 as compared to financial year 2015-16 are as all the employees are regulated under the NTPC’s Policy on
under: - Prevention, Prohibition and Redressal of Sexual Harassment
of Women at Workplace.
`in Crore
Human Resources
Description 2016-17 2015-16
As on 31st March 2017, there were 43 employees posted on
A i) Capital employed 310.11 233.16 secondment basis from holding company viz. NTPC Limited.
ii) Net worth 310.11 233.16 To achieve the ambitious growth targets, the Company has
B i)
Return on Capital 38% 34% drawn professional manpower from NTPC who have rich
Employed (PBT/CE) experience in dealing in various technical, financial and
commercial issues.
ii)
Return on net 25% 22%
worth (PAT/NW) CAUTIONARY STATEMENT
C Dividend as % of Equity 150 100 Statements in the Management Discussion and Analysis
Capital describes the Company’s objectives, projections, estimates,
D Earning per share 38.22 25.98 expectations may be “forward-looking statements” within
in ` (EPS) before the meaning of applicable laws and regulations. Actual
exceptional item results may vary materially from those expressed or
implied. Important factors that could make a difference
The capital employed as well as net worth has increased to the Company’s operations include economic conditions
due to addition of profit earned during the current financial affecting demand/supply and price conditions in the
year and such increase has also resulted increase in Return markets in which the Company operates, changes in
on Capital Employed, Return on Net Worth and EPS of the Government regulations & policies, tax laws and other
Company. statutes and incidental factors.
Procurement from MSEs For and on behalf of the Board of Directors

Your Company during the financial year under review has
procured goods and services amounting to `2.02 Crore
out of which procurement of goods and services from Sd/-
Micro and Small Enterprises (MSEs) was `82.51 Lakh. The (GURDEEP SINGH)
percentage procurement from MSEs was 40.76%. CHAIRMAN
Sexual Harassment of women at workplace. DIN: 00307037
All the employees of the Company are on secondment Place: New Delhi
Date: July 27, 2017
47
A Maharatna Company
Annexure-II
SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2017
{Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014}
To, (c) The Securities and Exchange Board of India
The Members, (Issue of Capital and Disclosure Requirements)
Regulations, 2009; Not Applicable
NTPC Vidyut Vyapar Nigam Limited.
(d) The Securities and Exchange Board of India (Share
We have conducted the Secretarial Audit of the Compliance
Based Employee Benefits) Regulations, 2014; Not
of applicable statutory provisions and the adherence to
Applicable
good Corporate Practices by NTPC Vidyut Vyapar Nigam
Limited (hereinafter called NVVNL/the Company). Secretarial (e) The Securities and Exchange Board of India (Issue
Audit was conducted in a manner that provided us a and Listing of Debt Securities) Regulations, 2008;
reasonable basis for evaluating the corporate conducts/ Not Applicable
statutory compliances and expressing our opinion thereon. (f) The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer Agents)
Based on our verification of the NVVNL’s books, papers,
Regulations, 1993 regarding the Companies Act
Minute books, forms and returns filed and other records
and dealing with client; Not Applicable
maintained by the Company and also the information’s
provided by the Company, its officers, agents and authorized (g) The Securities and Exchange Board of India
representatives during the conduct of secretarial audit, we (Delisting of Equity Shares) Regulations, 2009; Not
Applicable and
hereby report that in our opinion, the Company has, during
the audit period covering the financial period ended on 31st (h) The Securities and Exchange Board of India
March, 2017 complied with the statutory provisions listed (Buyback of Securities) Regulations, 1998; Not
hereunder and also that the Company has proper Board Applicable
processes and Compliance mechanism in place to the (vi) Compliances/ processes/ systems under other
extent, in the manner and subject to the reporting made applicable Laws to the Company are being verified on
hereinafter: the basis of periodic certificate submitted to the Board
of Directors of the Company.
We have examined the books, papers, minute books, forms
and returns filed and other records maintained by NVVNL We have also examined compliance with the applicable
for the financial year ended on 31st March, 2017 according clauses of the following:
to the provisions of: (a) Secretarial Standards issued by the Institute of
(i) The Companies Act, 2013 (the Act) and the rules made Company Secretaries of India.
thereunder; (b) Securities Exchange Board of India (Listing
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) Obligations and Disclosure Requirements)
Regulations, 2015. Not Applicable
and the rules made thereunder; Not Applicable
During the period under review the Company has complied
(iii) The Depositories Act, 1996 and the Regulations and
with the provisions of the Act, Rules, Regulations, Guidelines,
Bye-laws framed thereunder; Not Applicable
Standards, etc. mentioned above subject to the following
(iv) Foreign Exchange Management Act, 1999 and the rules observation:
and regulations made thereunder to the extent of
1. During the Financial year, the composition of the Board
Foreign Direct Investment, Overseas Direct Investment & committees of the Board should be in compliance
and External Commercial Borrowings; Not Applicable with the provisions of the Companies Act, 2013 with
(v) The following Regulations and Guidelines prescribed respect to appointment of Independent Directors &
under the Securities and Exchange Board of India Act, consequential non-compliances thereof.
1992 (‘SEBI Act’):- Note: The Ministry of Corporate Affairs vide its notification
(a) The Securities and Exchange Board of India dated 5th July, 2017, has exempted wholly owned unlisted
(Substantial Acquisition of Shares and Takeovers) public subsidiary companies from appointing Independent
Regulation, 2011; Not Applicable directors. In view of the aforesaid notification NVVNL is not
(b) The Securities and Exchange Board of India required to appoint Independent Directors. The above said
(Prohibition of Insider Trading) Regulations, 2015; observation is retained as it pertains to financial year prior
Not Applicable to aforesaid notification.
48
A Maharatna Company
We further report that the Board of Directors of the compliance with applicable laws, rules, regulations and
Company is not duly constituted due to non-appointment guidelines and Company is in process of reviewing &
of Independent Directors on the Board of the Company. The strengthening the same.
changes in the composition of the Board of Directors that We further report that during the audit period, there were
took place during the period under review were carried no specific events/actions having a major bearing on the
out in compliance with the provisions of the Act. Company’s affairs in pursuance of the above referred laws.
Generally, adequate notice is given to all directors to
schedule the Board Meetings, agenda and detailed notes For Agarwal S. & Associates,
on agenda were sent at least seven days in advance, and a Company Secretaries,
system exists for seeking and obtaining further information
and clarifications on the agenda items before the meeting
and for meaningful participation at the meeting. Sd/-
CS Sachin Agarwal
All the decisions made in the Board/Committee meeting(s)
Partner
were carried out with unanimous consent of the all the
FCS No. : 5774
Directors/Members present during the meeting.
CP No. : 5910
We further report that there are adequate systems and
processes in the Company commensurate with the size Place: New Delhi
and operations of the company to monitor and ensure Date: July 10, 2017
This report is to be read with our letter of even date which is annexed as “Annexure A” and forms an integral part of this
report.
“Annexure A”
To,
The Members,
NTPC Vidyut Vyapar Nigam Limited
Our report of even date is to be read along with this letter.
1. Maintenance of secretarial records is the responsibility of the management of the Company. Our Responsibility is to
express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about
the correctness of the contents of the secretarial records. The verification was done on test basis to ensure that
correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a
reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and
regulation and happening of events etc.
5. The Compliance of the provisions of corporate and other applicable laws, rules, regulations, standards are the
responsibility of management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit Report is neither an assurance as to future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
For Agarwal S. & Associates,

Company Secretaries,
Sd/-
CS Sachin Agarwal
Partner
FCS No. : 5774
CP No. : 5910
Place: New Delhi
Date: July 10, 2017
49
A Maharatna Company
“Annexure III”
1. A brief outline of the company’s CSR policy, including overview of projects or programs proposed to be undertaken
and a reference to the web-link to the CSR policy and projects or programs.
Keeping in view the size of the Company and manpower required for executing the CSR activities, your Company has
adopted the CSR policy of its holding company viz. NTPC Limited and also undertaking CSR activities through NTPC
Limited.
NTPC Limited is executing the CSR activities for long and having a formidable set-up for executing CSR activities. The
CSR Policy of NTPC Limited is formulated keeping in view the requirements of the Companies Act, 2013 and the
Department of Public Enterprises. The CSR policy focused on Health, Sanitation, Drinking Water, Education, Capacity
Building, Women Empowerment, Social Infrastructure Development, support to Physically Challenged Person (PCPs),
and activities contributing towards Environment Sustainability and other subject matter described under schedule VII
of the Companies Act, 2013. The CSR policy is also available on the website of the Company: www. nvvn.co.in.
2. The Composition of the CSR Committee.
Name of the Director Designation

Shri Gurdeep Singh Chairman
Shri A.K. Jha Director
Shri Kulamani Biswal Director
3. Average net profit of the company for last three financial years.
The average net profit of the Company for three immediately preceding financial years i.e. 2013-14, 2014-15 and
2015-16 is `78.50 crore.
4. Prescribed CSR Expenditure.
The Company as per the requirement of the Companies Act, 2013, is required to spend 2% of ` 78.50 crore i.e. ` 1.57
Crore in the financial year 2016-17.
5. Details of CSR spent during the financial year 2016-17.
(a) Total amount spent for the financial year : ` 2,07,77,525

(b) Amount unspent, if any : ` 11,13,740
(c) Manner in which the amount spent during the : Detailed below
financial year
(1) (2) (3) (4) (5) (6) (7) (8)

S.No CSR project or activity Sector in Which the Projects or Amount Amount spent Cumulative Amount
identified. Project is covered. Programs outlay on the Projects expenditure spent: Direct
(1) Local area or (budget) or programs upto to the or through
other Project or Sub-heads: reporting implementing
(2) Specify the Programs (1) Direct period. agency
State and the wise expenditure (Amount in
district where (Amount on projects or ` lakh)
projects or in ` lakh) programs-
progams was (2) Overheads:
undertaken. (Amount in `
lakh)
1. Implementation and Rural Development/ In 3 villages of 40.668 *31.559 40.668 Implementing
commissioning of solar Environment Chhatarpur District Agency
power Integrated sustainability of Madhya Pradesh
Domestic Energy System
in 300 households in 3
villages
50
A Maharatna Company
(1) (2) (3) (4) (5) (6) (7) (8)

S.No CSR project or activity Sector in Which the Projects or Amount Amount spent Cumulative Amount
identified. Project is covered. Programs outlay on the Projects expenditure spent: Direct
(1) Local area or (budget) or programs upto to the or through
other Project or Sub-heads: reporting implementing
(2) Specify the Programs (1) Direct period. agency
State and the wise expenditure (Amount in
district where (Amount on projects or ` lakh)
projects or in ` lakh) programs-
undertaken. (Amount in `
lakh)
2. Designing, Supplying, Environmental Birla Institute of 79.769 53.179 53.179 Direct
Installing and Sustainability Technology, Sindri,
commissioning of 150 Jharkhand
kWp Rooftop Solar PV
System
3. Mukhya Mantri Jal Rural Development Baran, Rajasthan 75.690 71.500 71.500 Implementing
Swalamban Abhiyan, Agency
Rajasthan
4. Installation of hand Promoting Phulpur, Uttar 55.150 51.537 51.537 Implementing
pumps sanitation and safe Pradesh Agency
drinking water
Total 251.277 207.775 216.884
* The project was undertaken during the financial year 2015-16. Out of budgeted amount of ` 40.668 Lakh an amount of `9.109
Lakh was incurred in financial year 2015-16 and an amount of `31.559 Lakh was incurred in financial year 2016-17
Entire CSR budget for the financial year 2016-17, as per the provisions of the Companies Act, 2013, has been committed
for CSR activities and remaining unspent amount shall be utilized in subsequent financial year 2017-18 onwards as spill
over for CSR activities.
The implementation and monitoring of Corporate Social Responsibility Policy, is in compliance with CSR objectives and
policy of the Company.
Sd/- Sd/-
(Arun Kumar Garg) (GURDEEP SINGH)
Chief Executive Officer CHAIRMAN
DIN: 00307037
Place: New Delhi
Date: July 27, 2017
51
A Maharatna Company
“Annexure IV”
Form No. MGT-9
i) CIN : U40108DL2002GOI117584
ii) Registration Date : November 1, 2002
iii) Name of the Company : NTPC Vidyut Vyapar Nigam Limited
iv) Category / Sub-Category of the Company : Company Limited by shares
v) Address of the Registered office and contact details : NTPC Bhawan, Core 7, SCOPE Complex,
7, Institutional Area, Lodi Road, New
Delhi-110 003, Ph. No. 011-24360071
vi) Whether listed company Yes / No : NO
vii) Name, Address and Contact details of Registrar and Transfer Agent, if any : N.A.

All the business activities contributing 10 % or more of the total turnover of the company shall be stated: -
Sl. Name and Description of main NIC code of the Product/service % to total turnover of the
No. products/Services company
1. Power Trading N.A. 100
S. Name and address of the CIN/GLN Holding/ Subsidiary/ % of shares Applicable

No. Company Associate held Section
1. NTPC Limited L40101DL1975GOI007966 Holding 100 Section 2 (46) of
NTPC Bhawan, Core 7, the Companies
SCOPE Complex, Act, 2013
7, Institutional Area,
Lodi Road, New Delhi-110 003
Total Total
shares shares
A. Promoters
(1) Indian
a) Individual/ HUF - - - - - - - - -
b) Central Govt. - - - - - - - - -
c) State Govt.(s) - - - - - - - - -
d) Bodies Corp. - 1,99,99,300 1,99,99,300 100 - 1,99,99,300 1,99,99,300 100 -
(NTPC Limited)
52
A Maharatna Company
Total Total
shares shares
e) Banks/FI - - - - - - - - -
f) Any Other - 700 700 - - 700 700 - -
(Nominees of
NTPC)
Sub-total (A) (1):- - 2,00,00,000 2,00,00,000 100 - 2,00,00,000 2,00,00,000 100 -
(2) Foreign
a) NRIs- - - - - - - - - -
individuals
b) Other- - - - - - - - - -
Individuals
c) Bodies Corp. - - - - - - - - -
d) Banks / FI - - - - - - - - -
e) Any Other…. - - - - - - - - -
Sub-total (A) (2):- - - - - - - - - -
Total shareholding - 2,00,00,000 2,00,00,000 100 - 2,00,00,000 2,00,00,000 100 -
of Promoter (A) =
(A)(1) + A(2)
1. Institutions
a) Mutual Funds - - - - - - - - -
b) Banks/FI - - - - - - - - -
c) Central Govt. - - - - - - - - -
d) State Govt.(s) - - - - - - - - -
Funds
f) Insurance - - - - - - - - -
Companies
g) FIIs - - - - - - - - -
h) Foreign - - - - - - - - -
Venture Capital
Funds
i) Others(specify) - - - - - - - - -
Sub-total (B) (1):- - - - - - - - - -
2. Non-institutions
a) Bodies Corp.
i) Indian - - - - - - - - -
ii) Overseas - - - - - - - - -
b) Individuals
53
A Maharatna Company
Total Total
shares shares
i) Individual - - - - - - - - -
Shareholders
holding
nominal share
capital upto
` 1 lakh
ii) Individuals - - - - - - - - -
shareholders
holding
nominal share
capital in
excess of
` 1 lakh
c) Others(specify) - - - - - - - - -
Sub-total (B) (2):- - - - - - - - - -
Total Public - - - - - - - - -
Shareholding
(B)=(B)(1)+(B) (2)
C. Shares held by - - - - - - - - -
Custodian for
GDRs & ADRs
Grand Total (A+B+C) - 2,00,00,000 2,00,00,000 100 - 2,00,00,000 2,00,00,000 100 -
Sl Shareholder’s Shareholding at the beginning of the Shareholding at the end of the year
No. Name year
No. of % of total % of Shares No. of % of total % of Shares % change
Shares Shares Pledged / shares Shares Pledged / in the
of the encumbered of the encumbered shareholding
company to total company to total during the
shares shares year
1. NTPC Limited 1,99,99,300 100 - 1,99,99,300 100 - -
2. Nominee of NTPC 700 - - 700 - - -

company company
At the beginning of the year 2,00,00,000 100 2,00,00,000 100
54
A Maharatna Company

company company
Date wise Increase/Decrease in Promoters No change No change No change No change
reasons for increase / decrease (e.g. allotment/
transfer/ bonus/sweat equity etc.) :
At the End of the year 2,00,00,000 100 2,00,00,000 100
Sl For each of Top 10 shareholders Shareholding at the beginning Cumulative shareholding during
company company
Date wise Increase / Decrease in Shareholding - - - -
bonus / sweat equity etc) :
At the End of the year (or on the date of - - - -
separation, if separated during the year)
company company
1. Shri Gurdeep Singh, Director
At the beginning of the year NIL - NIL -
Equity shares transferred on 17.05.2016, as 100 - 100 -
nominee of NTPC
2. Shri A.K. Jha, Director
55
A Maharatna Company
company company
3. Shri Kulamani Biswal, Director
V. INDEBTEDNESS
Secured Loans Unsecured Deposits Total

excluding Loans Indebtedness
deposits
Indebtedness at the beginning of the financial year - - - -
i) Principal Amount - - - -
Total (i + ii + iii) - - - -
• Addition
• Reduction - - -
Net Change - - - -
Indebtedness at the end of the financial year - - - -
i) Principal amount - - - -
Total ( i + ii + iii) - - - -


No. Amount
(a) Salary as per provisions contained in - - - - -
section 17(1) of the Income-tax Act,1961
(b) Value of perquisites u/s 17(2) of the - - - - -
(c) Profits in lieu of salary under section - - - - -
17(3) of the Income-tax Act, 1961
56
A Maharatna Company

No. Amount
- as % of profit -
- others, specify… -
Total (A) - - - - -

No. Amount
meetings
• Commission
Total (1) - - - - -
meetings
• Commission
Total (2) - - - - -
Total (B) = (1 + 2) - - - - -

secretary
1. Gross Salary
(a) Salary as per provisions contained in section 17(1) of 33,35,976 16,07,153 32,26,532 81,69,661
the Income-tax Act,1961
(b) Value of perquisites u/s 17(2) of the Income-tax Act, 93,334 45,794 95,761 2,34,889
1961
(c) Profits in lieu of salary under section 17(3) of the - - - -
2. Stock Option - - - -
3. Sweat Equity - - - -
57
A Maharatna Company

secretary
4. Commission - as % of profit
- others, specify - - -
5. Others, please specify(Leave encashment) - - - -
Total 34,29,310 16,52,947 33,22,293 84,04,550
Type Section of the Brief description Details of Authority (RD / Appeal made,
companies act Penalty / NCLT / COURT) if any (give
Punishment / details)
Compounding
fees imposed
A. COMPANY
Penalty - - - - -
B. DIRECTORS
Penalty - - - - -
Penalty - - - - -
Sd/-
(GURDEEP SINGH)
CHAIRMAN
DIN: 00307037
Place: New Delhi
Date: July 27, 2017
58
A Maharatna Company
“Annexure V”
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred
to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third
proviso thereto
1. Details of contracts or arrangements or transactions not at arm’s length basis

(a) Name(s) of the related party and : Utility Powertech Limited. A Joint Venture Company of holding company
nature of relationship viz. NTPC Limited
(b) Nature of contracts/arrangements/ : The contract was for hiring of skilled and non-skilled manpower for
transactions carrying out day-to-day activities of the Company.
(c) Duration of the contracts/ : Contracts were for the durations of 3 months, 9 months and 1 year
arrangements/ transactions
(d) Salient terms of the contracts : Cumulative approved contract value was upto `73,00,000
or arrangements or transactions
including the value, if any
(e) Justification for entering into such : Utility Powertech Limited (UPL), a Joint Venture Company of NTPC Limited,
contracts or arrangements or the holding Company, is providing manpower to joint ventures and
transactions subsidiaries of NTPC. Since incorporation of the Company, UPL is providing
skilled and non-skilled manpower.
(f) Date(s) of approval by the Board : September 21, 2016
(g) Amount paid as advances, if any: : Nil
(h) Date on which the special resolution : Not Applicable
was passed in general meeting as
required under first proviso to
section 188
2. Details of material contracts or arrangement or transactions at arm’s length basis
(a) Name(s) of the related party and Not Applicable
nature of relationship
(b) Nature of contracts/arrangements / : Not Applicable
transactions
(c) Duration of the contracts / : Not Applicable
arrangements /transactions
(d) Salient terms of the contracts : Not Applicable
or arrangements or transactions
including the value, if any:
(e) Date(s) of approval by the Board, if : Not Applicable
any:
(f) Amount paid as advances, if any: : Not Applicable
Sd/-
(GURDEEP SINGH)
CHAIRMAN
DIN: 00307037
Place: New Delhi
Date: July 27, 2017
59
A Maharatna Company
BALANCE SHEET AS AT 31ST MARCH 2017

` Lakh
31.03.2017 31.03.2016 01.04.2015
ASSETS
Non-current assets
Property, plant and equipment 2 13.06 17.21 24.74
Capital work-in-progress 3 - 3.41 3.41
Intangible assets 2 1.32 4.50 7.69
Deferred tax Asset (net) 4 5.02 - -
Other non-current assets 5 2,727.29 2,891.56 2890.86
2,746.69 2,916.68 2926.70
Current assets
Financial assets
Trade receivables 6 53,970.29 55,874.67 48583.95
Cash and cash equivalents 7 18,379.80 2,435.13 3142.20
Other bank balances 8 16,418.99 31,050.32 32894.55
Other financial assets 9 52,521.18 32,773.31 28916.77
Other current assets 10 249.85 405.26 119.07
141,540.11 122,538.69 113656.54
TOTAL ASSETS 144,286.80 125,455.37 116583.24

Equity
Equity share capital 11 2,000.00 2,000.00 2,000.00
Other equity 12 29,021.76 21,378.22 18,589.58
31,021.76 23,378.22 20,589.58
Liabilities
Non-current liabilities
Deferred tax liabilities (net) 4 - 86.63 1.83
- 86.63 1.83
Current liabilities
-Trade payables 13 85,087.79 64,303.23 53,782.83
-Other financial liabilities 14 25,507.47 33,062.67 41,267.91
Other current liabilities 15 408.43 208.48 426.17
Provisions 16 1,832.24 4,122.70 399.88
Current tax liabilities (net) 17 429.11 293.44 115.04
113,265.04 101,990.52 95,991.83
(Nitin Mehra) (Alka Saigal) (A. K. Garg) (K. Biswal) (Gurdeep Singh)
Company Secretary CFO CEO Director Chairman
For S S Kothari Mehta & Co.,
Firm Registration No.000756N
(Naveen Aggarwal)
Partner ( M.No.94380)
Place: New Delhi
Date:
60
A Maharatna Company
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2017
` Lakh
31.03.2017 31.03.2016
Revenue
Revenue from operations 18 522,384.31 402,002.47
Other income 19 3,731.57 2,092.92
Total revenue 526,115.88 404,095.39
Expenses
Purchase of energy 20 511,155.33 393,674.09
Employee benefits expense 21 1,458.12 1,397.36
Finance costs 22 532.95 5.23
Depreciation, amortization and impairment expense 2 9.61 13.07
Other expenses 23 1,128.56 978.97
Total expenses 514,284.57 396,068.72
Profit before tax 11,831.31 8,026.67
Tax expense
Current tax
Current year 4,279.65 2,746.08
Earlier years (0.23) -
Deferred tax (91.65) 84.80
Total tax expense 4,187.77 2,830.88
Profit for the year 7,643.54 5,195.79
Total comprehensive income for the year 7,643.54 5,195.79
Earnings per equity share (Par value `10/- each)
Basic & Diluted (`) 38.22 25.98

(Naveen Aggarwal)
Place: New Delhi
Date: 18.05.2017
61
A Maharatna Company
` Lakh
Particulars As at As at
31.03.2017 31.03.2016
Net profit/(loss) before tax 11,831.31 8,026.67
Adjustment for:
Depreciation 9.61 13.07
Interest Charges 58.08 5.23
Interest income (639.43) (1,143.25)
Provision 7.85 -
Profit on disposal of fixed asset - (0.03)
(563.89) (1,124.98)
Operating Profit before Working Capital Changes 11,267.42 6,901.69
Adjustment for:
Trade and other receivables (17,976.26) (10,938.54)
Trade payable, provisions and other liabilities 13,546.00 3,813.02
Deposits & other bank balances 14,631.33 1,844.23
Other Current Assets 288.18 (494.92)
10,489.25 (5,776.21)
Cash generated from operations 21,756.67 1,125.48
Direct taxes paid (4,042.00) (2,372.69)
Net Cash from Operating Activities-A 17,714.67 (1,247.21)
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed assets (3.03) (5.00)
Disposal of fixed assets 0.75 2.68
Interest on Investments Received 639.43 1,143.25
Income Tax on Interest on Investments (200.91)
Net Cash used in Investing Activities -B 637.15 940.02
Dividend paid (2,000.00) -
Tax on dividend (407.15) (399.88)
Interest Paid - -
Net Cash flow from Financing Activities-C (2,407.15) (399.88)
Net Increase/(Decrease) in Cash and Cash equivalents (A+B+C) 15,944.67 (707.07)
Cash and Cash equivalents (Opening balance) 2,435.13 3,142.20
Cash and Cash equivalents (Closing balance) 18,379.80 2,435.13
NOTES
Cash and Cash Equivalents consist of Balance with Banks in current accounts. Cash & cash equivalents included in the
cash flow statement comprise of following balance sheet amounts as per Note 7:
Balances with banks
Current accounts 18,379.80 2,435.13
(Naveen Aggarwal)
Place: New Delhi
Date: 18.05.2017
62
STATEMENT OF CHANGES IN EQUITY
(a) Equity share capital
` Lakh
Balance at the Changes in equity Balance as at
beginning of the share capital 31 March 2017
reporting period
2,000 - 2,000

` Lakh
Balance at the Changes in equity Balance as at 31
beginning of the share capital March 2016
reporting period
2,000 - 2,000
(b) Other Equity

Reserves & Surplus Total
Corporate social General reserve Retained Earnings
responsibility (CSR)
reserve
Balance as at 31 March 2016 61.89 21,079.38 236.95 21,378.22
Other comprehensive Income -
Total Comprehensive Income - - 7,643.54 7,643.54
Adjustment during the year
Transfer to Retained earnings (61.89) (61.89)
Transfer from Retained earnings 11.14 7,900.00 7,911.14
Transfer to CSR reserve (11.14) (11.14)
Transfer from CSR reserve 61.89 61.89
Transfer to general reserve (7,900.00) (7,900.00)
Interim Dividend -
Tax on interim dividend -
A Maharatna Company
63
64
Corporate social General reserve Retained Earnings
A Maharatna Company
responsibility (CSR)
reserve

Other comprehensive Income -
Total Comprehensive Income 5,195.79 5,195.79
Adjustment during the year
Transfer to Retained earnings (62.14) (62.14)
Transfer from Retained earnings 61.89 2,600.00 2,661.89
Transfer to CSR reserve (61.89) (61.89)
Transfer from CSR reserve 62.14 62.14
Transfer to general reserve (2,600.00) (2,600.00)
Interim Dividend (2,000.00) (2,000.00)
Tax on interim dividend (407.15) (407.15)

2. Property, plant and equipment
As at 31 March 2017 ` Lakh
Furniture and fixtures 8.05 - - 8.05 1.37 1.33 - 2.70 5.35 6.68
Office equipment 3.79 3.03 - 6.82 0.79 1.22 - 2.01 4.81 3.00
EDP, WP machines and satcom 14.29 - 4.15 10.14 7.65 3.81 3.40 8.06 2.08 6.64
equipment
Communication equipments 0.96 - - 0.96 0.07 0.07 - 0.14 0.82 0.89
Total 27.09 3.03 4.15 25.97 9.88 6.43 3.40 12.91 13.06 17.21
As at 31 March 2016
Furniture and fixtures 8.05 - - 8.05 - 1.37 - 1.37 6.68 8.05
Office equipment 1.51 2.30 0.02 3.79 - 0.79 - 0.79 3.00 1.51
EDP, WP machines and satcom 14.22 0.27 0.20 14.29 - 7.65 - 7.65 6.64 14.22
equipment
Communication equipments 0.96 - - 0.96 - 0.07 - 0.07 0.89 0.96
Total 24.74 2.57 0.22 27.09 - 9.88 - 9.88 17.21 24.74
A Maharatna Company
65
Intangible assets
66
As at 31 March 2017
Particulars Gross Block Amortisation Net Block
A Maharatna Company

Software 7.69 - - 7.69 3.19 3.18 - 6.37 1.32 4.50
Total 7.69 - - 7.69 3.19 3.18 - 6.37 1.32 4.50
As at 31 March 2016
Software 7.69 - - 7.69 - 3.19 - 3.19 4.50 7.69
Total 7.69 - - 7.69 - 3.19 - 3.19 4.50 7.69
Information regarding gross block of assets and accumulated depreciation under previous GAAP is as follows:

Particulars Gross block Accumulated Net Block Ind AS Opening
as at depreciation as at adjustments balance
as at as at as at
01.04.2015 01.04.2015 01.04.2015 01.04.2015 01.04.2015
Furniture and 12.23 4.18 8.05 - 8.05
fixtures
Office equipment 5.73 4.22 1.51 - 1.51
EDP, WP machines 45.11 30.89 14.22 - 14.22
and satcom
equipment
Communication 1.11 0.15 0.96 - 0.96
equipments
Software 12.07 4.38 7.69 - 7.69
76.25 43.82 32.43 - 32.43
A Maharatna Company
3. Capital work-in-progress
` Lakh
Particulars As at Deductions/ As at
01.04.2016 Additions Adjustments Capitalised 31.03.2017
EDP/WP machines & satcom equipment 3.41 - - - 3.41

Less : Provision for unserviceable CWIP - 3.41 - - 3.41
Total 3.41 (3.41) - - -
` Lakh
EDP/WP machines & satcom equipment 3.41 - - - 3.41
Total 3.41 - - - 3.41
4. Deferred tax Assets & Liabilities

` Lakh
Particulars As at Additions/ As at
01.04.2016 (Adjustments) 31.03.2017
during the
year
Deferred tax liability
- Difference in book depreciation and tax depreciation 0.65 (1.87) (1.22)
- Accrued rebate allowed to beneficiaries 137.11 (137.11)
Total deferred tax liability (A) 137.76 (138.98) (1.22)
Deferred tax asset
- Provisions & other disallowances for tax purposes 0.77 3.03 3.80
- Accrued rebate earned 50.36 (50.36)
Total deferred tax asset (B) 51.13 (47.33) 3.80
Net deferred tax liability (A-B) 86.63 (91.65) (5.02)
` Lakh
01.04.2015 (Adjustments) 31.03.2016
during the
year
- Difference in book depreciation and tax depreciation 2.59 (1.94) 0.65
- Accrued rebate earned 137.11 137.11
Total deferred tax liability (A) 2.59 135.17 137.76
67
A Maharatna Company
` Lakh
01.04.2015 (Adjustments) 31.03.2016
during the
year
Deferred tax asset
- Provisions & other disallowances for tax purposes 0.76 0.01 0.77
- Accrued rebate 50.36 50.36
Total deferred tax asset (B) 0.76 50.37 51.13
Net deferred tax liability (A-B) 1.83 84.80 86.63
- The net changes in deferred tax has been credited to Profit & Loss account.
- Deferred tax assets and deferred tax liability has been offset as they relate to the same governing law.
5. Other non current assets (Considered good, unless otherwise stated)

` Lakh
31.03.2017 31.03.2016 01.04.2015
Deposits
- Deposit with Sales tax Authority 0.50 0.50 0.50
Advances
- Advance tax & tax deducted at source 11,771.55 13,169.06 10,413.38
Less: Provision for tax 9,044.76 10,278.00 7,523.02
2,726.79 2,891.06 2,890.36
Total 2,727.29 2,891.56 2,890.86
6. Trade receivables
` Lakh
31.03.2017 31.03.2016 01.04.2015
Unsecured, considered good 53,970.29 55,874.67 48583.95

Considered doubtful 2.23 2.23 2.23
53,972.52 55876.90 48586.18
Less: Allowance for bad & doubtful receivables 2.23 2.23 2.23
Total 53970.29 55874.67 48583.95
Unbilled revenues of `52402.93 Lakh (`32522.29 Lakh as on 31.03.2016 & `28874.48 Lakh as on 01.04.2015) is stated in
Note 9.
68
A Maharatna Company
7. Cash and cash equivalents

` Lakh
31.03.2017 31.03.2016 01.04.2015
Balances with banks

Current accounts 18,379.80 2,435.13 3,142.20
18,379.80 2,435.13 3,142.20
8. Other bank balances

` Lakh
31.03.2017 31.03.2016 01.04.2015
Deposits with original maturity of more than three months and maturing 14,943.76 29,682.08 15,939.68
within one year (incl. accrued interest)
Earmarked balances with banks # 1,475.23 1,368.24 16,954.87
Total 16,418.99 31,050.32 32,894.55
# Not available for use to the Company and include:

Term deposit as security with Sales Tax Authorities 0.25 0.25 0.25
Term deposits Fly Ash Utilisation Fund - - 15,711.39
Term Deposit as per the directive from the Hon'ble High Court of Delhi 1,474.98 1,367.99 1,243.23
1,475.23 1,368.24 16,954.87

` Lakh
31.03.2017 31.03.2016 01.04.2015
Advances
Others
Unsecured 14.32 17.4 4.29
Deposits *
Others
Unsecured 103.93 233.62 38.00
118.25 251.02 42.29
Unbilled revenue # 52,402.93 32,522.29 28,874.48
Total 52,521.18 32,773.31 28,916.77
* Deposits include margin money with Indian Energy Exchange (IEX) & Power Exchange of India Ltd. (PXIL).
# Unbilled revenues are for sale of energy for which the bills have been raised to customers subsequent to the reporting
date.
69
A Maharatna Company
10. Other current assets

` Lakh
31.03.2017 31.03.2016 01.04.2015
Others
Unsecured 254.43 404.50 118.31
Less: Provision for Doubtful advances 5.34 - -
249.09 404.50 118.31
Assets held for disposal 0.76 0.76 0.76

Total 249.85 405.26 119.07
11. Share capital

` Lakh
31.03.2017 31.03.2016 01.04.2015

Authorised
2,00,00,000 shares of par value of `10/- each
(Previous year 2,00,00,000 shares of par value of `10/- each) 2,000.00 2,000.00 2,000.00

2,00,00,000 shares of par value of `10/- each
(Previous year 2,00,00,000 shares of par value of `10/- each) 2,000.00 2,000.00 2,000.00
a) During the period, the company has not issued/bought back any
equity shares.
b) The company has only one class of equity shares having par value of
`10/- each.
c) The holders of the equity shares are entitled to receive dividends
as declared from time to time and are entitled to voting rights
proportionate to their shareholding at the meetings of its shareholders
subject to approval of the shareholders.
d) Dividends: Paid during the year
2016-17 2015-16
Interim dividend for the year ended 31 March 2016
st
- 2,000.00
(`10/- per equity share of par value `10/- each) - -
Interim dividend for the year ended 31 March 2017
st
70
A Maharatna Company
12. Other equity

` Lakh
31.03.2017 31.03.2016 01.04.2015
Corporate social responsibility (CSR) reserve

As per last financial statements 61.89 62.14 -
Add : Transfer from surplus 11.14 61.89 62.14
Less: Transfer to surplus 61.89 62.14 -
11.14 61.89 62.14
General reserve 21,079.38 18,479.38 16,579.38

As per last financial statements 7,900.00 2,600.00 1,900.00
Add : Transfer from surplus - - -
Less: Adjustments during the year 28,979.38 21,079.38 18,479.38
Retained earnings
As per last financial statements 236.95 48.06 48.94
Add: Profit for the year as per Statement of Profit and Loss 7,643.54 5,195.79 4,361.14
Transfer from CSR reserve 61.89 62.14 -
Less: Transfer to CSR reserve 11.14 61.89 62.14
Transfer to general reserve 7,900.00 2,600.00 1,900.00
Interim dividend - 2,000.00 2,000.00
Tax on interim dividend - 407.15 399.88
31.24 236.95 48.06
Total 29,021.76 21,378.22 18,589.58
In terms of Section 135 of the Companies Act, 2013 read with guidelines on Corporate Social Responsibility issued by
Department of Public Enterprise (DPE) GOI, the Company is required to spend, in every financial year, at least two per cent
of the average net profits of the Company made during the three immediately preceding financial years in accordance with
its CSR Policy. The company has spent an amount of `207.77 Lakh during the year and unspent balance amounting to `11.14
Lakh has been appropriated to CSR reserve from surplus (refer note no. 34).
13. Trade payables

` Lakh
31.03.2017 31.03.2016 01.04.2015
For goods and services 85,087.79 64,303.23 53,782.83
Disclosure with respect to Micro, Small and Medium Enterprises as required by Micro, Small and Medium Enterprises
Development Act, 2006 is made in Note 33.
71
A Maharatna Company
14. Other financial liabilities (Current)

` Lakh
31.03.2017 31.03.2016 01.04.2015
Payable for capital expenditure 3.41 3.41 3.41

Other payables
Deposits from contractors and others 37.87 94.60 30.25
Payable to holding company 322.22 261.55 18,154.01
Payable to employees 88.38 105.14 111.90
Retention on A/c BG encashment (Solar) 23,362.24 18,764.91 19,911.86
Payable to Solar Payment Security Account 187.52 12,431.75 1,767.30
Others 1,505.83 1,401.31 1,289.18
Total 25,507.47 33,062.67 41,267.91
a) Other payables-Retention on A/c BG encashment (solar) comprises of:

For the year 2016-17
` Lakh
Particulars As at For the As at
01.04.2016 year ended 31.03.2017
31.03.2017
Amount received as liquidated damages on late commissioning of solar 19,295.89 5,195.25 24,491.14
power plants
Add: Interest accrued on above ( Note 16) 1,818.91 - 1,818.91
Less: Legal expenses 634.34 481.23 1,115.57
Less: Liability on a/c of arbitration cases where award has been 1,715.55 116.69 1,832.24
pronounced
Net Balance- Retention on A/c BG encashment (Solar) 18,764.91 4,597.33 23,362.24
For the year 2016-17
` Lakh
Particulars As at For the As at
01.04.2015 year ended 31.03.2016
31.03.2016
Amount received as liquidated damages on late commissioning of solar 18,407.19 888.70 19,295.89
power plants
Add: Interest accrued on above ( Note 16) 1,818.91 - 1,818.91
Less: Legal expenses 314.24 320.10 634.34
Less: Liability on a/c of arbitration cases where award has been 1,715.55 1,715.55
pronounced
Net Balance- Retention on A/c BG encashment (Solar) 19,911.86 (1,146.95) 18,764.91
- The above treatment in “Retention on A/c BG encashment (Solar)” is made as per the directions received from the
Ministry of New and Renewable Energy (MNRE) vide letter ref. no. 29/5/2010-11/JNNSM(ST) dated 29.06.2012 and
clarifications thereafter.
72
A Maharatna Company
- The Company utilised ` 23362.24 Lakh from “Retention on A/c BG encashment (Solar)” for non payment of dues by its
customers under JNNSM scheme .
b) Other payables - Payable to Solar Payment Security Account : Upto current year, the company has withdrawn an
amount of ` 187.52 Lakh (other than SPSA Management Fees @ 1% recoverable) on account of default by its customers
from Solar Payment Security Account as per the directions received from the Ministry of New and Renewable Energy
(MNRE).
c) Other payables - Others include the amount received on encashment of the Bank Guarantee of ` 950.65 Lakh on
02.11.2011 invested in Fixed Deposit as per the directive from the Hon’ble High Court of Delhi till the matter is settled
through Arbitration. Further, interest accrued thereon upto current year amounting to ` 555.18 Lakh (` 450.66 Lakh
upto 31.03.2016 & ` 338.53 Lakh upto 01.04.2015) also stands credited in the said account.
d) Considering the directions received from MNRE and opinion of the tax consultant, there is a transfer of proceeds from
BG encashment by overriding effect because the proceeds from BG encashment do not belong to the company since
it has to be used for specified purposes and there will be no tax liability.
15. Other current liabilities

` Lakh
31.03.2017 31.03.2016 01.04.2015
Advances from customers and others 134.34 54.74 15.62

Other payables
Tax deducted at source and other statutory dues 274.09 153.74 410.55
Total 408.43 208.48 426.17
16. Provisions
` Lakh
31.03.2017 31.03.2016 01.04.2015
Provision for
Interim Dividend - 2,000.00 -
Tax on interim Dividend - 407.15 399.88
Arbitration Cases 1,832.24 1,715.55 -
Total 1,832.24 4,122.70 399.88
17. Current tax liabilities (net)

` Lakh
31.03.2017 31.03.2016 01.04.2015
Provision for Current Tax 429.11 293.44 115.04
73
A Maharatna Company
18. Revenue from operations
` Lakh
Particulars For the For the
31.03.2017 31.03.2016
Revenue from operations
Sale of energy 526,811.43 - 405,306.80
Less: Rebate to beneficiaries 4,886.52 - 3,456.05
521924.91 401,850.75
Commission 459.40 151.72
Total 522,384.31 402,002.47
a) Sale of bilateral energy and energy under SWAP arrangements in million units (MUs) are recognized on the basis of
monthly Regional Energy Accounts (REA) issued by the concerned Regional Power Committee (RPC).
b) Sale of bilateral energy includes compensation received of ` 164.48 Lakh (previous period ` 93.96 Lakh) due to lesser
supply/drawl of power by the supplier/buyers and open access charges on energy trading borne by the company.
c) Sale of Solar and thermal bundled energy in million units are recognized on the basis of monthly Joint meter reading
(JMR)/Regional Energy Account (REA) issued by the concerned authorities.
d) Sale of energy under Swap arrangements is billed by margin only to buyers.
e) Commission on energy trading through exchange recognised as agreed with the client.
19. Other income
` Lakh
31.03.2017 31.03.2016
Interest from
Loan to employees 3.58 -
Deposits with banks/Reserve Bank of India 639.43 1,399
Less : Transferred to Holding Co. (Note 14)* - 639.43 255.75
1,143.25
Surcharge received from customers 2,775.53 730.27
Management Fee 241.15 120.69
Miscellaneous income # 71.88 98.68
Profit on disposal of fixed assets - 0.03
Total 3,731.57 2,092.92
- 167.24
* Amount transferred (net of tax)
# Miscellaneous income includes sundry balance written back, liquidated damages recovered etc.
74
A Maharatna Company
20. Purchase of Energy
` Lakh
31.03.2017 31.03.2016
Purchase of energy 518,653.46 398,780.47
Less: Rebate to Sellers 7,498.13 5,106.38
Total 511,155.33 393,674.09
a) Purchase of energy in million units (MUs) are recognized on the basis of monthly Regional Energy Accounts (REA) issued
by the concerned Regional Power Committee (RPC).
b) Bilateral energy purchase includes compensation payment of ` 164.48 Lakh (previous year `89.76 Lakh) due to lesser
supply/drawl of power by the Company.
c) Purchase of Solar and thermal bundled energy in million units are recognized on the basis of monthly Joint meter
reading (JMR) / REA issued by the concerned authorities.
21. Employee benefits expense
` Lakh
31.03.2017 31.03.2016
Salaries and wages 1,103.18 1,058.19
Contribution to provident and other funds 269.80 269.82
Staff welfare expenses 85.14 69.35
Total 1,458.12 1,397.36
a) All the employees of the Company are on secondment from NTPC Limited. Pay, allowances, perquisites and other
benefits of the employees are governed by the terms and conditions under an agreement with NTPC Ltd. As per
the agreement, amount equivalent to a fixed percentage of basic & DA of the seconded employees is payable by
the company for employee benefits such as provident fund, pension, gratuity, post retirement medical facilities,
compensated absences, long service award, economic rehabilitation scheme and other terminal benefits.
b) An amount of ` 202.79 Lakh (previous year ` 201.39 Lakh) towards provident fund, pension, gratuity, post retirement
medical facilities & other terminal benefits and ` 67.01 Lakh ( previous year ` 68.43 Lakh ) towards leave & other
benefits are paid/ payable to the holding Company and are included under Employee benefits.
c) The pay revision of the employees of the company is due w.e.f. 1st January 2017. Pending decision of the committee
formed by GOI, a provision of ` 66.19 Lakh has been made on estimated basis as apportioned by the Holding company
i.e. NTPC Ltd.
22. Finance costs
` Lakh
31.03.2017 31.03.2016
Interest paid
Income Tax 62.51 5.23
SPSA account 470.39 -
Others 0.05 -
Total 532.95 5.23
75
A Maharatna Company
23. Other expenses
` Lakh
31.03.2017 31.03.2016
Power charges 19.14 18.31
Rent 499.19 464.18
Repairs & maintenance
Buildings 16.09 24.53
Others 1.65 1.41
17.74 25.94
Insurance 0.01 0.03
Rates and taxes 40.00 40.00
Training & recruitment expenses 0.06 0.94
Communication expenses 30.54 25.37
Travelling expenses 71.55 96.36
Tender expenses 93.10 8.72
Less: Receipt from sale of tenders 0.90 -
92.20 8.72
Entertainment expenses 10.95 12.08
Brokerage & commission 0.14
Corporate Social Responsibility (CSR) Expenses 207.78 147.25
Books and periodicals 0.34 0.22
Professional charges and consultancy fee 71.77 36.77
Surcharge expenses 0.47 0.00
Legal expenses 0.29 24.27
EDP hire and other charges 0.79 1.1
Printing and stationery 0.92 1.65
Hiring of vehicles 1.59 2.99
Bank charges/LC Charges 19.88 41.8
1,119.81 978.97
Provision for advance 5.34 -
Provision for unserviceable CWIP 3.41 -
Total 1,128.56 978.97
24. a) The Company has a system of obtaining periodic confirmation of balances from banks and other parties. There
are no unconfirmed balances in respect of bank accounts and borrowings from banks & financial institutions.
In addition, reconciliation with beneficiaries and other customers is generally done on a regular interval and
therefore separate balance confirmation not required. For trade payables/loans/advances, balance confirmation
letters were sent to the parties. Some of such balances are subject to confirmation/reconciliation. Adjustments,
if any will be accounted for on confirmation/reconciliation of the same, which in the opinion of the management
will not have a material impact.
76
A Maharatna Company
b) In the opinion of the management, the value of assets, other than fixed assets and non-current investments, on
realisation in the ordinary course of business, will not be less than the value at which these are stated in the
Balance Sheet.
25. Disclosure as per Ind AS 12 ‘Income taxes’
(a) Income tax expense
(i) Income tax recognised in Statement of Profit and Loss
` Lakh
31 March 31 March
2017 2016
Current tax expense

Current year 4279.65 2746.08
Adjustment for prior periods (0.23) -
Deferred tax expense
Origination and reversal of temporary differences (91.65) 84.80
Total income tax expense 4187.77 2830.88
(ii) Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate
` Lakh
31 March 31 March
2017 2016
Profit before tax 11831.31 8026.67

Tax using the Company’s domestic tax rate of 34.61% 4094.58 2777.87
(31 March 2016 - 34.61%)
Tax effect of:
Non-deductible tax expenses 93.42 53.01
Others (0.23) -
Total tax expense in the statement of profit & loss 4187.77 2830.88
26. Disclosure as per Ind AS 17 ‘Leases’
The Company’s significant leasing arrangement are in respect of operating leases of the premises for residential use
of the employees amounting to ` 37.87 Lakh (Previous period ` 44.92 Lakh) and are included in Note 21-“Employees
Benefits Expense”. Similarly, lease payments in respect of premises for offices amounting to ` 499.19 Lakh (Previous
period ` 464.18 Lakh) are shown in Rent in Note 23 -“Other Expenses”. The significant leasing arrangements for such
leases are entered into by the Company and its Holding Company i.e. NTPC Limited and these leasing arrangements are
usually renewable on mutually agreed terms but are not non-cancelable.
27. Disclosure as per Ind AS 24 ‘Related Party Disclosures’
List of Related parties:
i) Holding Company - NTPC Ltd.
ii) Joint Venture company of NTPC Ltd.:
Utility Powertech Ltd.
NTPC-SAIL Power Company Pvt. Ltd.
Aravali Power Company Pvt. Ltd.
77
A Maharatna Company
iii) Key Management Personnel (KMP)

Shri Gurdeep Singh - Chairman
Shri A. K. Jha - Director
Shri K. Biswal - Director
Shri K. K. Sharma - Director
Ms. A. Satyabhama - Director
Shri N. K. Sharma - CEO - upto 30.09.2016
Shri A. K. Garg - CEO - w.e.f. 01.10.2016
Ms. Alka Saigal - CFO
Shri Nitin Mehra - Company Secretary
Transactions with the related parties are as follows:
` Lakh
Holding Company and Joint Venture Companies of Holding Company
Particulars 2016-17 2015-16
Contracts for services received from JV of holding company 55.04 49.00

Purchase of goods from holding company 207,367.32 181,290.92
Purchase of goods from JV of holding company 3,206.58 -
Dividend paid to holding company - 2,000.00
` Lakh
Particulars 2016-17 2015-16
Compensation to Key management personnel

- Short term employee benefits 75.45 87.98
- Post employment benefits 1.91 4.83
- Other long term benefits 17.27 16.52
- Termination benefits 27.01 -
Total Compensation to Key management personnel 121.64 109.33
Outstanding balances with related parties are as follows:
` Lakh
Particulars 31 March 31 March 1 April
2017 2016 2015
Utility Powertech Ltd. 4.93 21.45 16.32

NTPC Ltd. 23372.46 34,262.49 38,887.84
NTPC-SAIL Power Company Pvt. Ltd. * 592.62 - -
Aravali Power Company Pvt. Ltd. * 73.84 - -
* Payable towards exchange transaction
The company’s management is of the opinion that its domestic transactions with related parties are at arms length and will
not have any impact on financial statements for the year ended 31.03.2017.
78
A Maharatna Company
28. Disclosure as per Ind AS 33 ‘Earnings per Share’

The elements considered for calculation of Earning Per Share (Basic and Diluted) are as under:
Particulars Year ended Year ended

31.03.2017 31.3.2016
Net profit/(loss) after Tax used as numerator (` Lakh) 7643.54 5195.79

Weighted average number of equity shares used as denominator 20000000 20000000
Earning per share (Basic & Diluted) - (`) 38.22 25.98
Face Value per share - (`) 10.00 10.00
29. Disclosure as per Ind AS 36 ‘Impairment of Assets’
There are no external/internal indicators which leads to any impairment of assets of the company as required by Ind
AS 36 ‘Impairment of Assets’.
30. Disclosure as per Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’
Movements in provisions:
` Lakh
Particulars Provision for Provision for Provision for Provision for
arbitration cases doubtful debts doubtful advances unserviceable CWIP
31.03.17 31.03.16 31.03.17 31.03.16 31.03.17 31.03.16 31.03.17 31.03.16
Carrying amount at the 1,715.55 - 2.23 2.23 - - - -
beginning of the year
Additions during the year 116.69 1,715.55 - - 5.34 - 3.41 -
Amounts used during the year - - - - - - - -
Reversal / adjustments during - - - - - - - -
the year
Carrying amount at the end of 1,832.24 1,715.55 2.23 2.23 5.34 - 3.41 -
the year
Contingent Liability:
a) -Various solar power developers challenged the encashment/ forfeiture of EMD/Bid bond under provisions of PPA
before arbitrator/High Courts. The contingent liability of ` 23469.84 Lakh and interest claim of ` 14789.09 Lakh
thereon (31st March 2016: contingent liability ` 23469.84 Lakh and interest ` 8958.78 Lakh, 1st April 2015: contingent
liability ` 22100.23 Lakh and interest ` 6206.57 Lakh) has been estimated. Any possible liability crystalised on the
above will be recovered from “Retention on A/c BG encashment (Solar)” (Note 14).
b) -One party has challenged the invocation of BG of ` 100.00 Lakh on the ground of non conclusion of contract
with the company for Ash Business. Interest on above has been estimated till current year ` 99.57 Lakh (31st March
2016: ` 77.08 Lakh, 1st April 2015: ` 63.52 Lakh).
c) - 3.84 Million units supplied by the sellers under SWAP arrangements are yet to be returned - Amount uncertainable.
These are the Company’s first Financial Statements in accordance with Ind AS. For the year ended 31 March 2016, the
Company prepared its financial statements in accordance with Indian GAAP, including accounting standards notified
under the Companies (Accounting Standards) Rules, 2006 (as amended). The effective date for Company’s Ind AS
Opening Balance Sheet is 1 April 2015 (the date of transition to Ind AS).
31 March 2017, the comparative information presented in these financial statements for the year ended 31 March
2016 and in the preparation of an opening Ind AS Balance Sheet at 1 April 2015 (the Company’s date of transition).
are based on standards and interpretations that are effective at 31 March 2017, the date of first-time preparation of
Financial Statements according to Ind AS.
79
A Maharatna Company
Any resulting differences between carrying amounts of assets and liabilities according to Ind AS 101 as of 1 April 2015
compared with those presented in the opening Indian GAAP Balance Sheet as of 31 March 2015, were recognized in
equity under retained earnings within the Ind AS Balance Sheet.
In the Ind AS Opening Balance Sheet as at 1 April 2015, the carrying amounts of assets and liabilities from the Indian
GAAP as at 31 March 2015 are generally recognized and measured according to Ind AS in effect as on 31 March 2017.
For certain individual cases, however, Ind AS 101 provides for optional exemptions and mandatory exceptions to the
general principles of retrospective application of Ind AS. The Company has made use of the following exemptions and
exceptions in preparing its Ind AS Opening Balance Sheet:
Tangible & Intangible assets
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its tangible and intangible
assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP
and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning
liabilities.
Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their
previous GAAP carrying value.
Reconciliation of equity as at 1 April 2015 and as at 31 March 2016
compared with those presented in the Indian GAAP Balance Sheet as of 31 March 2015, were recognized in equity
` Lakh
1 April 2015 31 March 2016
Previous Adjustments Ind ASs Previous Adjustments Ind ASs
GAAP* GAAP*
ASSETS
Non-current assets
Property, plant and equipment 24.74 - 24.74 17.21 - 17.21
Capital work-in-progress 3.41 - 3.41 3.41 - 3.41
Intangible assets 7.69 - 7.69 4.50 - 4.50
Other financial assets
Deferred tax Asset (net) - - 0.12 (0.12) -
Other non-current assets 2,915.86 (25.00) 2,890.86 2,926.56 (35.00) 2,891.56
Current Assets
Financial assets
Trade receivables 48,583.95 - 48,583.95 56,020.18 (145.51) 55,874.67
Cash and cash equivalents 34,743.91 (31,601.71) 3,142.20 33,371.72 (30,936.59) 2,435.13
Other bank balances - 32,894.55 32,894.55 - 31,050.32 31,050.32
Other financial assets 106.58 28,810.19 28,916.77 221.35 32,551.96 32,773.31
Other current assets 30,197.10 (30,078.03) 119.07 33,035.94 (32,630.68) 405.26
Total Assets 116,583.24 - 116,583.24 125,600.99 (145.62) 125,455.37
80
A Maharatna Company
` Lakh
1 April 2015 31 March 2016
Previous Adjustments Ind ASs Previous Adjustments Ind ASs
GAAP* GAAP*
Equity
Equity Share capital 2,000.00 - 2,000.00 2,000.00 - 2,000.00
Other equity 18,589.58 - 18,589.58 21,214.28 163.94 21,378.22
Liabilities
Deferred tax liabilities (Net) 1.83 - 1.83 - 86.63 86.63
Current liabilities
Trade payables 53,045.73 737.10 53,782.83 63,833.16 470.07 64,303.23
Other financial liabilities - 41,267.91 41,267.91 - 33,062.67 33,062.67
Other current liabilities 42,431.18 (42,005.01) 426.17 34,137.41 (33,928.93) 208.48
Provisions 514.92 (115.04) 399.88 4,416.14 (293.44) 4,122.70
Current Tax Liabilities (Net) 115.04 115.04 - 293.44 293.44
Total equity and liabilities 116,583.24 - 116,583.24 125,600.99 (145.62) 125,455.37
* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes of this note.
Reconciliation of total comprehensive income for the year ended 31 March 2016
` Lakh
Previous GAAP* Adjustments Ind ASs
INCOME
Revenue 410,168.71 (8,166.24) 402,002.47
Other income 2,092.92 - 2,092.92
Total Income 412,261.63 (8,166.24) 404,095.39
EXPENDITURE
Purchase of energy 398,780.47 (5,106.38) 393,674.09
Rebate on energy sale 3,310.54 (3,310.54) -
Employee benefits expense 1,397.36 - 1,397.36
Finance expenses 5.23 - 5.23
Depreciation and amortization 13.07 - 13.07
Generation, Administration and Other expenses 978.97 - 978.97
Total Expenses 404,485.64 (8,416.92) 396,068.72
Profit before tax and Rate Regulated Activities(RRA) 7,775.99 250.68 8,026.67
Current tax
Current year 2,746.08 - 2,746.08
Deferred tax (1.95) 86.75 84.80
2,744.13 86.75 2,830.88
Profit after tax 5,031.86 163.93 5,195.79
Total comprehensive income for the year 5,031.86 163.93 5,195.79
Reconciliation of total equity as at 31 March 2016 and 1 April 2015
81
A Maharatna Company
` Lakh
31 March 2016 1 April 2015
Adjustments:
Provision of rebate to customers & sellers (net) 250.69 -
Tax effect of above adjustments (86.75) -
Total adjustments 163.94 -
Reconciliation of total comprehensive income for the year ended 31 March 2016
` Lakh
31 March 2016
Profit after tax as per previous GAAP 5,031.86
Adjustments:
Provision of rebate to customers & sellers (net) 250.69
Tax effect of above adjustments (86.75)
Total adjustments 163.94
Profit after tax as per Ind AS 5,195.80
Other comprehensive income (net of tax): 5,195.80
Total comprehensive income as per Ind AS 5,195.80
32. Disclosure as per Ind AS 108 ‘Operating segments’

As on date the Company has no reportable segments as per the Chief operating decision maker (CODM) of the company.
The Company has not disclosed geographical segments as operations of the Company are mainly carried out within the
country.
33. Information in respect of micro and small enterprises as at 31 March 2017 as required by Micro, Small and Medium
Enterprises Development Act, 2006
` Lakh
2017 2016 2015
a) Amount remaining unpaid to any supplier:
Principal amount 0.12 - -
Interest due thereon - - -
b) Amount of interest paid in terms of Section 16 of the MSMED Act along- - - -
with the amount paid to the suppliers beyond the appointed day.
c) Amount of interest due and payable for the period of delay in making - - -
payment (which have been paid but beyond the appointed day during
the year) but without adding the interest specified under the MSMED
Act.
d) Amount of interest accrued and remaining unpaid - - -
e) Amount of further interest remaining due and payable even in the - - -
succeeding years, until such date when the interest dues as above are
actually paid to the small enterprises, for the purpose of disallowances
as a deductible expenditure under Section 23 of MSMED Act
34. Corporate Social Responsibility Expenses (CSR)
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A Maharatna Company
As per Section 135 of the Companies Act, 2013 read with guidelines issued by DPE, the Company is required to spend, in
every financial year, at least two per cent of the average net profits of the Company made during the three immediately
preceding financial years in accordance with its CSR Policy. The details of CSR expenses for the year are as under:
` Lakh
Particulars 31 March 2017 31 March 2016
A. Amount required to be spent during the year 157.02 147.00
B. Shortfall amount of previous year 61.89 62.14
C. Total (A+B) 218.91 209.14
D. Amount spent during the year on-(in collaboration with NTPC)
- Construction/ acquisition of any asset 136.27 138.33
- On purposes other than (i) above 71.50 8.92
Total 207.77 147.25
Shortfall amount appropriated to CSR reserve 11.14 61.89
Break-up of the CSR expenses under major heads is as under:
` Lakh
Particulars 31 Mrach 2017 31 Mrach 2016
1. Swachh Vidyalaya Abhiyan
2. Healthcare and sanitation - 107.22
3. Education and skill development - 8.92
4. Rural development 103.05 9.11
5. Environment 53.18 -
6. Drinking water 51.54 22.00
Total 207.77 147.25
35. Specified Bank Notes (SBN) held and transacted during the period 08/11/2016 to 30/12/2016:
Particulars Specified Bank Notes Other denomination Total

notes
Closing cash in hand as on 08.11.2016 - - -
Add: Permitted receipts - - -
Less: Permitted payments - - -
Less: Amount deposited in Banks - - -
Closing cash in hand as on 30.12.2016 - - -
36. Financial Risk Management
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from trade
receivables, loans & advances, cash & cash equivalents and deposits with banks and financial institutions.
Trade receivables
Trade receivables of the company can be dividedinto two parts- solar debtors & non-solar debtors. Payment from non-
solar debtors are regular whereas in solar debtors there are some disputes with one of the beneficiary.
83
A Maharatna Company
The ageing analysis of the trade receivables is as below:
As on 31.03.2017 ` Lakh
Ageing Not due 0-30 days 31-60 days 61-90 days 91-120 More than Total
past due past due past due days 120 days
past due past due
Gross carrying amount 956.54 9712.96 18878.28 1419.38 5339.89 17663.25 53,970.29
As on 31.03.2016 ` Lakh
past due past due
Gross carrying amount 3455.11 15181.82 18719.51 77.58 2921.93 15518.72 55874.67
As on 01.04.2015 ` Lakh
past due past due
Gross carrying amount 5775.72 15953.08 12414.98 195.19 291.15 13953.83 48583.95
Deposits with banks and financial institutions
The Company held deposits with banks and financial institutions of ` 14943.76 Lakh (31 March 2016: ` 29682.08 Lakh,
1 April 2015: ` 15939.68 Lakh). In order to manage the risk, company accepts only high rated banks/institutions.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk
at the reporting date was nil.
37. Figures in the Financial Statements have been rounded off to `/Lakh upto two decimal.
38. Previous year figures have been regrouped / rearranged wherever considered necessary.

(Naveen Aggarwal)
Place: New Delhi
Date:
84
A Maharatna Company
INDEPENDENT AUDITORS REPORT

To the Members of
NTPC Vidyut Vyapar Nigam Limited
Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of NTPC Vidyut Vyapar Nigam Limited (“the Company”),
which comprise the Balance Sheet as at 31 March 2017, Statement of Profit and Loss (including other comprehensive
income) and the statement of Cash Flows and the statement of changes in equity for the year then ended, and a summary
of the significant accounting policies and other explanatory information (herein after referred to as “Ind AS Financial
Statements”).
Management’s Responsibility for the Financial Statements.

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013(“Act”)
with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position,
financial performance including other comprehensive income, cash flows and changes in equity of the Company in
accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS)
specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the
act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent;
the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the
Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those
Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company’s preparation of the Ind AS financial statements that give a
true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made
by the Company’s Management, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS
financial statements give the information required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India including the Ind AS. In the case of the Balance Sheet,
of the state of affairs of the Company as at March 31, 2017.In the case of the Profit and Loss including other comprehensive
income, of the profit for the year ended on that date, In the case of the Cash Flow Statement, of the cash flows and the
changes in equity for the year ended on that date.
Report on Legal and Other Regulatory Requirements

1. 1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of
85
A Maharatna Company
India in terms of section 143(11) of the Act, we give in the “Annexure A”, a statement on the matters specified in the
paragraph 3 and 4 of the order.
2. We are enclosing our report in terms of section 143(5) of the Act, on the basis of such checks of the books and records
of the Company as we considered appropriate and according to information and explanation given to us, in the
“Annexure B” on the directions and sub-directions issued by Comptroller and Auditor General of India.
3. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and 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 it appears
from our examination of those books;
(c) The balance sheet, the statement of profit and loss and the cash flows and the statement of changes in equity dealt
with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. Except IND AS-105
(e) Being a Government Company, pursuant to the Notification No. GSR 463(E) dated 5 June 2015 issued by Ministry
of Corporate Affairs, Government of India, provisions of sub-section (2) of Section 164 of the Companies Act,
2013, are not applicable to the Company.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate report in “Annexure C”; and
(g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to
the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial
statements- Refer note 30 to the Ind AS financial statements;
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund
by the Company; and
(iv) The Company has provided requisite disclosures in its Ind AS financial statements as to holdings as well as
dealings in Specified Bank Notes during the period from 8 November, 2016 to 30 December, 2016 and these
are in accordance with the books of accounts maintained by the Company. Refer Note 35 to the Ind AS
financial statements.
For S.S. Kothari Mehta & Co.
Firm Registration Number: 000756N
(Naveen Aggarwal)
Partner
Membership Number: 094380
Place: New Delhi
Date : 18.05.2017
86
A Maharatna Company
ANNEXURE - A TO THE INDEPENDENT AUDITOR’S REPORT

The Annexure as referred in Paragraph (1) ‘Report on Legal and Other Regulatory Requirements of our Independent
Auditors’ Report to the members of NTPC Vidyut Vyapar Nigam Limited on the Ind AS financial statements for the year
ended 31 March 2017, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation
of fixed assets.
(b) There is a regular programme of physical verification of all fixed assets over a period of two years which, in our
opinion, is reasonable having regard to the size of the company and nature of its assets. No material discrepancies
were noticed on such verification.
(c) There is no immovable property in the name of the Company, therefore clause 3(i)(c) of “the Order” is not
applicable to the Company.
(ii) There is no inventory in the company during the year under audit. Thus, paragraph 3(ii) of “the Order” is not applicable
to the Company.
(iii) The Company has not granted any loans secured or unsecured to any Company, firm or other party listed in the register
maintained under Section 189 of the Companies Act, 2013.
Accordingly 3(iii)(a), clause 3(iii)(b) and clause 3(iii)(c) are not applicable to the company.
(iv) The Company has not made any loan, investments, guarantees and security under provisions of section 185 and 186 of
the Companies Act, 2013.
Accordingly clause 3(iv) of “the Order” is not applicable to the Company.
(v) The Company has not accepted any deposits from the public therefore provision of Section 73-76 of Companies Act
2013 is not applicable to the Company. Accordingly provision of clause 3(v) of “the Order” is not applicable to the
Company.
(vi) The Central Government has not prescribed the maintenance of cost accounts and records under section 148 of the
Companies Act, 2013.Accordingly clause 3(vi) of the order is not applicable to the company.
(vii) (a) The employees of the Company are on secondment basis from its holding Company i.e. NTPC Ltd. As explained to
us, the Holding Company is regular in depositing undisputed statutory dues including provident fund, employee
state insurance etc.
According to the information and explanation given to us and according to the records of the Company, income
tax, sales tax and service tax are being deposited by the Company on regular basis with the appropriate authority
during the year. Duty of customs, duty of excise, value added tax, cess and other related statues are not applicable
to the company. According to the information and explanations given to us, there are no undisputed provident
fund, income tax, sales tax & service tax in arrear as at 31 March 2017 for a period of more than six month from
the date they became payable.
(b) According to the information and explanations given to us, there are no dues of sales tax, income tax and service
tax which have not been deposited on account of any dispute. Duty of customs, duty of excise, value added tax,
cess and other related statues are not applicable to the Company.
(viii) The Company does not have any loans or borrowings from any financial institution, banks, government or debenture
holders during the year. Accordingly paragraph 3 (viii) of “the Order” is not applicable.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments)
and term loans during the year. Accordingly paragraph 3(ix) of “the Order” is not applicable.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by
its officers or employees has been noticed or reported during the course of our audit. Accordingly paragraph 3(ix) of
“the Order” is not applicable.
(xi) As per notification no. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India,
section 197 is not applicable to the Government Companies. Accordingly provisions of clause 3(xi) of “the Order” are
not applicable to the company.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company.
Accordingly paragraph 3(xii) of “the Order” is not applicable.
(xiii) All the transactions undertaken by the Company are in compliance with provisions of sections 177 and 188 of the
Companies Act, 2013.
87
A Maharatna Company
(xiv) According to the information and explanations given to us and based on our examination of the records of the
Company, the Company has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures during the year. Accordingly provisions of Clause 3(xiv) of “the Order” is not applicable to the
Company.
(xv) According to the information and explanations given to us and based on our examination of the records of the
Company, the Company has not entered into non-cash transactions with directors or persons connected with him.
Accordingly paragraph 3 (xv) of “the Order” is not applicable.
(xvi) The Company is not required to obtain any registration under section 45-IA of the Reserve Bank of India Act, 1934.
Accordingly provision of clause 3(xvi) of the “Order” is not applicable to the Company.

(Naveen Aggarwal)
Partner
Place: New Delhi
Date: 18.05.2017
ANNEXURE- B TO THE AUDITOR’S REPORT

Annexure referred to in our report of even date to the members of NTPC Vidyut Vyapar Nigam Limited on accounts for the
year ended 31 March 2017.
Sr. Direction/Sub-direction Actions Taken Impact on financial
No. Statement
1 Whether the Company has clear title/ lease There is no freehold and leasehold land in the Not Applicable
deeds for freehold and leasehold land Company. Therefore requirements under clause
respectively? If not, please state the area 1 of the directions are note applicable during
of freehold and leasehold land for which the year.
title/lease deeds are not available.
2 Whether there are any cases of waiver/ There are no waiver/write off of debts/loans/ Not Applicable
write off of debts/loans/interest etc. If yes interest etc. by the company during the year,
the reasons there of and amount involved. therefore requirements under clause 2 of the
directions are not applicable during the year.
3 Whether proper records are maintained During the year under audit no inventory of Not Applicable
for inventories lying with third parties and the Company was lying with third party and no
assets received as gift/ grant(s) from the assets have been received as gift from Govt. or
Government or other authorities. other authorities, therefore requirements under
clause 3 of the directions are not applicable
during the year.

(Naveen Aggarwal)
Partner
Place: New Delhi
Date: 18.05.2017
88
A Maharatna Company
ANNEXURE- C TO THE AUDITOR’S REPORT

Report on the Internal Financial Controls under Clause (i) of effectiveness. Our audit of internal financial controls over
Sub-section 3 of Section 143 of the Companies Act, 2013 financial reporting included obtaining an understanding of
(“the Act”) as referred to in paragraph 3(f) of Report on internal financial controls over financial reporting, assessing
Other Legal and Regulatory Requirements’ section the risk that a material weakness exists, and testing and
We have audited the internal financial controls over evaluating the design and operating effectiveness of
financial reporting of NTPC Vidyut Vyapar Nigam Limited internal control based on the assessed risk. The procedures
(“the Company”) as of March 31 2017 in conjunction with selected depend on the auditor’s judgment, including the
our audit of the Ind AS financial statements of the Company assessment of the risks of material misstatement of the Ind
for the year ended on that date. AS financial statements, whether due to fraud or error.
Management’s Responsibility for Internal Financial Controls We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
The Company’s management is responsible for establishing
qualified audit opinion on the Company’s internal financial
and maintaining internal financial controls based on the
controls system over financial reporting.
internal control over financial reporting criteria established
by the Company considering the essential components of Meaning of Internal Financial Controls over Financial
internal control stated in the Guidance Note on Audit of Reporting
Internal Financial Controls over Financial Reporting issued A Company’s internal financial control over financial
by the Institute of Chartered Accountants of India (‘ICAI’). reporting is a process designed to provide reasonable
These responsibilities include the design, implementation assurance regarding the reliability of financial reporting
and maintenance of adequate internal financial controls and the preparation of financial statements for external
that were operating effectively for ensuring the orderly purposes in accordance with generally accepted
and efficient conduct of its business, including adherence accounting principles. A Company’s internal financial
to Company’s policies, the safeguarding of its assets, control over financial reporting includes those policies and
the prevention and detection of frauds and errors, the procedures that (1) pertain to the maintenance of records
accuracy and completeness of the accounting records, and that, in reasonable detail, accurately and fairly reflect the
the timely preparation of reliable financial information, as transactions and dispositions of the assets of the Company;
required under the Companies Act, 2013. (2) provide reasonable assurance that transactions are
Auditors’ Responsibility recorded as necessary to permit preparation of financial
statements in accordance with generally accepted
Our responsibility is to express an opinion on the Company’s
accounting principles, and that receipts and expenditures
internal financial controls over financial reporting based
of the Company are being made only in accordance
on our audit. We conducted our audit in accordance with
with authorizations of management and directors of the
the Guidance Note on Audit of Internal Financial Controls
Company; and (3) provide reasonable assurance regarding
Over Financial Reporting (the “Guidance Note”) and the
prevention or timely detection of unauthorized acquisition,
Standards on Auditing, issued by ICAI and deemed to
use, or disposition of the Company’s assets that could have
be prescribed under section 143(10) of the Companies
a material effect on the financial statements.
Act, 2013, to the extent applicable to an audit of internal
financial controls, both applicable to an audit of Internal Inherent Limitations of Internal Financial Controls over
Financial Controls, both issued by the Institute of Chartered Financial Reporting
Accountants of India. Those Standards and the Guidance Because of the inherent limitations of internal financial
Note require that we comply with ethical requirements and controls over financial reporting, including the possibility
plan and perform the audit to obtain reasonable assurance of collusion or improper management override of controls,
about whether adequate internal financial controls over material misstatements due to error or fraud may occur
financial reporting were established and maintained and if and not be detected. Also, projections of any evaluation
such controls operated effectively in all material respects. of the internal financial controls over financial reporting
Our audit involves performing procedures to obtain audit to future periods are subject to the risk that the internal
evidence about the adequacy of the internal financial financial control over financial reporting may become
controls system over financial reporting and their operating inadequate because of changes in conditions, or that the
89
A Maharatna Company
degree of compliance with the policies or procedures may Financial Reporting issued by the Institute of Chartered
deteriorate. Accountants of India”.
Qualified Opinion For S.S. Kothari Mehta & Co.
In our opinion, the Company has in all material respects, Chartered Accountants
an adequate internal financial controls system over
financial reporting and such internal financial controls over
financial reporting were operating effectively as of March (Naveen Aggarwal)
31, 2017, based on “the internal control over financial Partner
reporting criteria established by the Company considering Membership Number: 094380
the essential components of internal control stated in the Place: New Delhi
Date: 18.05.2017
Guidance Note on Audit of Internal Financial Controls Over

143(6)(B) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF NTPC VIDYUT
VYAPAR NIGAM LIMITED, NEW DELHI FOR THE YEAR ENDED 31 MARCH 2017
The preparation of financial statements of NTPC Vidyut Vyapar Nigam Limited, New Delhi for the year ended 31 March 2017
in accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility
of the management of the company. The Statutory Auditors appointed by the Comptroller and Auditor General of India
under Section 139(5) of the Act is responsible for expressing opinion on the financial statements under Section 143 of the
Act based on independent audit in accordance with the standards on auditing prescribed under Section 143(10) of the
Act. This is stated to have been done by them vide their Audit Report dated 18 May, 2017.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under Section 143(6)
(a) of the Act of the financial statements of NTPC Vidyut Vyapar Nigam Limited for the year ended 31 March 2017. 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. On the basis of my audit nothing significant has come to my knowledge which would give rise to
any comment upon or supplement to Statutory Auditors’ Report.

(Ritika Bhatia)
Ex-officio Member, Audit Board-III,
New Delhi
Place: New Delhi
Date: 12th July, 2017
90
A Maharatna Company
KANTI BIJLEE UTPADAN NIGAM LIMITED

DIRECTORS’ REPORT
Dear Members, To take care of environmental norms, your Company is
Your Directors are pleased to present 11th Annual Report carrying out ambient air quality monitoring, analysis of
on the business and operations of the Company along with drinking water and effluent water quality monitoring on
Audited Financial Statements and Auditors’ Report thereon monthly basis at plant and township area to keep check on
for year ended on 31st March 2017. emission of pollutants in the air and to maintain the quality
of the air and water around the project. On-line stack
PERFORMANCE OF THE COMPANY monitoring system is available in both the units of Stage - I.
Pursuant to Memorandum of Agreement dated 26.12.2005 Company has also established online monitoring of ambient
signed between NTPC, Government of Bihar and Bihar air quality monitoring system (AAQMS) at plant & township.
State Electricity Board for reviving and operating Stage-I
Apart from above company is also in the process of
(2X110 MW), your Company was entrusted with the work of
finalization of scheme for separation of plant drain water
renovating and modernizing (R&M) of existing (2x110 MW)
from storm water in consultation with NTPC.
units of Muzaffarpur Thermal Power Plant (MTPP).
Your Company organized environmental awareness program
Operational Performance:
amongst employees and people in and around plant. World
After completion of R&M of both the units of 110 MW of Environment Day was celebrated on 05.06.2017. On this
Stage-I, first unit is under commercial operation since day, 500 nos. of saplings were planted. Employees & other
01.11.2013 and the second unit became fully operational habitants took environment walk and oath for environment
from 15.11.2014. protection. Distribution of environment friendly carry bags
Unit#1 of Stage-I generated 382.28 MUs with a PLF of 39.67% were done to avoid use of polythene bags.
during 2016-17 as against 346.83 MUs with a PLF of 35.90% Seminar organized on 27.01.2017 for various uses of fly ash
during FY 2015-16. wherein 29 no. of persons participated.
Unit#2 of Stage-I generated 369.87 MUs with a PLF of 38.38%
FINANCIAL REVIEW
during 2016-17 as against 432.12 MUs with a PLF of 44.72%
during FY 2015-16. The financial highlights of the Company for the year ended
on 31st March 2016 and 31st March 2017 are as under:-
Unit#3 (1st unit of Stage-II) was declared commercial w.e.f.
18.03.2017 and had generated 17.73 MUs at a PLF of 27.06% (Amount in Lakh)
after commercialization. Balance Sheet Items as at 31.03.2017 31.03.2016
The total generation of the Company was 769.88 MUs during Paid-up Share Capital 1,12,224.30 1,06,150.77
2016-17. Other equity 16,153.05 (220.48)
Unit#4 (2nd unit of Stage-II ) was declared commercial wef Non-current liabilities 2,42,048.21 2,27,005.55
01.07.2017.
Current liabilities 67,040.52 59,250.41
Ash Utilisation: Non-current assets 4,43,811.07 3,98,990.87
Total ash generated from Stage-I during the FY 2016-17 was Current assets 22,225.37 25,777.72
2,44,371 MT as against 2,54,211 MT ash generated during Items from Statement of 31.03.2017 31.03.2016
FY 2015-16. Profit and Loss for the year
Total ash generated from Unit#1 of Stage-II during the FY ended
2016-17 is 5,187 MT. Total Revenue 41,630.24 37,762.54
Out of 2,49,558 MT of ash produced, 66,952 MT of ash has Total Expenses 43,823.44 45,334.90
been utilized for land fill and 2,949 MT ash has been issued Profit/ (Loss) before Tax and (2,193.21) (7,572.37)
to brick manufacturing units. Rate Regulated Activities
Construction Activities under progress: Total Tax Expenses - (1,751.71)
Coal handling plant package was awarded in Aug’15 for Profit/ (Loss) for the year (2,193.21) (5,820.66)
Stage-II after termination of earlier contract. Priority stream
INFORMATION PURSUANT TO STATUTORY AND OTHER
commissioned & subsequently COD of both the units done.
REQUIREMENTS
Work in main stream of CHP is in progress. Work of make-up
water pump house is also progressing with completion of Information required to be furnished as per the Companies
intake well pump floor in Budhi Gandhak River. Act, 2013 and other regulations are as under:
Subsidiary Company - Kanti Bijlee Utpadan Nigam Limited
91
A Maharatna Company
(1)
CONSERVATION OF ENERGY, TECHNOLOGY c. Constitution of Corporate Social Responsibility
ABSORPTION, FOREIGN EXCHANGE EARNING & Committee, number of Meetings held during the
OUTGO year, if any and attendance of Members in the
i. Energy conservation activities Meeting.
∙ BFP cartridge in stage # I units replaced with d. Information about other Committees of the Board
energy efficient cartridge. (3) CORPORATE SOCIAL RESPONSIBILITY
∙ Thermal scanning of boiler insulation, high
energy drains being done. During the three immediately preceding financial years,
∙ Conventional lights are being replaced by the Company had incurred loss of ` 31.23 crore. As
energy efficient LED lights. 1680 nos. light such, the Company has not incurred any expenditure
fittings have been replaced so far. on Corporate Social Responsibility (CSR) activity during
ii. Technological Absorption- Nil 2016-17. However, during the financial year 2015-16,
the Company had to incur ` 20.23 Lakh on CSR activity,
iii. During the period under review, there was no
out of which ` 12.47 Lakh remained unspent.
earning and no outgo in foreign exchange.
(2) The following information is provided in the Corporate The detail of activities on which part of the carried
Governance Report which forms part of the Annual over amount of ` 12.47 Lakh pertaining to FY 2015-16
Report as Annex-II was incurred during 2016-17 is contained in Annual
a. Number of Meetings of the Board held during the Report on Corporate Social Responsibility Activities at
year and attendance of Directors in the Board Annex-IV.
Meeting. As a socially responsible corporate citizen, the
b. Constitution of the Audit Committee, number of Company undertook the following activities under
Meetings held during the year and attendance of Rehabilitation and Resettlement to the tune of ` 68.59
the Members in the Audit Committee. lakh:
Amount Spent
Name of Project/ activity Location
( Lakh)
Distribution of Blanket to needy people in Project affected villages and surrounding villages of KBUNL
1.97
winter seasons plant.
Project affected villages and surrounding villages of KBUNL
Repair & upgradation of Hand pump 25.00
plant.
Installation of 100 solar street light 15.20
plant.
Construction of 30 nos. hand pumps 14.03
plant.
Skill development training to 19 nos. wards
11.40 Ward of PAPs
of PAPs
Providing torch and whistle to district
0.68 Trough District administration
adminstration for ODF programme
Providing school bag, dari and shoes to
0.31 Govt. Primary School Puraina, Minapur
govt. Primary school children
Total 68.59
(4) Statutory Auditors unqualified report on the accounts of the Company for
The Comptroller & Auditor General of India through the financial year 2016-17.
letter dated 22.07.2016 had appointed M/s Goel Mintri (6) Review of accounts by Comptroller & Auditor General
& Associates, Chartered Accountants as Statutory of India
Auditors of the Company for the financial year 2016- The Comptroller & Auditor General of India, through
17. The Statutory Auditors of the Company for the letter dated 20.07.2017, has given ‘NIL’ Comments on
financial year 2017-18 are yet to be appointed by the the Financial Statements of your Company for the year
Comptroller & Auditor General of India. ended 31st March 2017. As advised by the Office of
(5) Management comments on Statutory Auditors’ Report the Comptroller & Auditor General of India (C&AG),
the comments of C&AG for the year 2016-17 are being
The Statutory Auditors of the Company have given an
placed with the report of Statutory Auditors of your
92
A Maharatna Company
Company elsewhere in this Annual Report Additional 178 (2) which requires performance evaluation of
Disclosure is made in Directors Report as per every director by the Nomination & Remuneration
commitment made during Current Year Supplementary Committee. The aforesaid circular of MCA further
Audit by C&AG: exempted listed Govt. Companies from provisions
North Bihar Power Distribution Co. Ltd. (NBPDCL) raised of Section 134 (3) (p) which requires mentioning the
two bills on KBUNL of ` 3,058.70 lakh and ` 1,880.60 manner of formal evaluation of its own performance
Lakh during March 2016 & March 2017 respectively for by the Board and that of its Committees and Individual
withdrawal and use of power in colony as well as in Director in Board’s Report, if directors are evaluated by
construction activities. KBUNL has raised its observations the Ministry or Department of the Central Government
on the bills and the matter is under consideration. which is administratively in charge of the company, or,
(7) Cost Audit as the case may be, the State Government as per its
own evaluation methodology.
As prescribed under the Companies (Cost Records and
Audit) Rules, 2014, the Cost Accounting records are Now, MCA, through Notification dated 05.07.2017,
being maintained by the Company. has amended Schedule IV to the Companies Act, 2013
with respect to performance evaluation of directors of
M/s V.P. Gupta & Co., Cost Accountants, had been
the Government Companies that in case of matters of
appointed as Cost Auditors under Section 148(3) of
performance evaluation are specified by the concerned
the Companies Act, 2013 read with Rule 14 of the
Ministries or Departments of the Central Government
Companies (Audit & Auditors) Rules, 2014 for the
or as the case may be, the State Governments and such
financial year 2016-17.
requirements are complied with by the Government
The Cost Audit Report for your Company for the companies, such provisions of Schedule IV are exempt
Financial Year ended on 31.03.2016 was filed with the for the Government Companies.
Central Government on 10.10.2016.
As per the Articles of Association of KBUNL, all the
The Cost Audit Report for the financial year ended Directors are nominated by NTPC and Bihar State
March 31, 2017 shall be filed within the prescribed time Power Generation Company Limited (earlier BSEB).
period under the Companies (Cost Records & Audit) The Directors nominated by NTPC or BSPGCL are being
Rules, 2014. evaluated under a well laid down procedure for
(8) Your Company, being subsidiary of NTPC, is covered evaluation of Functional Directors & CMD as well as of
under the Enterprise Risk Framework established by Government Directors by Administrative/ respective
Holding Co., NTPC Limited. Details about risks with the Ministry/ Department. Also, the performance of the
Company are covered in the Management Discussion Board of the Government Companies is evaluated
& Analysis Report which forms part of this Report and during the performance evaluation of the MOU signed
placed at Annex-I. with the Holding Company i.e. NTPC Limited.
(9) Extract of Annual Return (11) Secretarial Audit
Extract of Annual Return of the Company is annexed The Board has appointed M/s Agarwal S. & Associates,
herewith as Annex- III to this Report. Company Secretaries, to conduct Secretarial Audit for
(10) Performance Evaluation of the Directors and the Board the financial year 2016-17. The Secretarial Audit Report
Ministry of Corporate Affairs (MCA), through for the financial year ended March 31, 2017 is annexed
General Circular dated 5th June, 2015, has exempted herewith marked as Annex- V to this Report.
Government Companies from the provisions of Section The Management’s Replies on the observations of
Secretarial Audit are as under:
Observations Management’s Replies
Compliance under Section 149(4) Kanti Bijlee Utpadan Nigam Limited (KBUNL) is a subsidiary of NTPC Limited,
read with Rule 4 of Companies a Government Company, as such, KBUNL is a Government Company. Being a
(Appointment and Qualification Government Company, its Independent Directors are required to be appointed by
of Directors) Rules, 2014 of the Government of India.
the Act and Clause 3.1.4 of the As per the Articles of Association of KBUNL, all the Directors are nominated by NTPC
DPE Guidelines on Corporate and Bihar State Power Generation Company Limited (earlier BSEB). NTPC (Holding
Governance with respect to the Company) has requested the Government to either permit NTPC or to appoint
appointment of Independent requisite number of Independent Directors on the Board of KBUNL.
Directors on the Board of However, the Ministry of Corporate Affairs through notification dated 05.07.2017,
Company & consequential non- has exempted unlisted public company, inter-alia, including a joint venture company
compliances thereof. Compliance from appointing Independent Directors on its Board.
under Section 149 (8) read with As per MCA’s notification dated 05.07.2017, KBUNL is not required to appoint
Clause VIII of Schedule IV of the Independent Directors on its Board, therefore, there is no requirement of
Act with respect to performance performance evaluation of director.
evaluation of the Directors.
93
A Maharatna Company
(12) Particulars of contracts or arrangements with related However, as per notification dated 5th June, 2015
parties issued by the Ministry of Corporate Affairs, Government
During the period under review, all transactions with Companies are exempted from complying with
related parties were at arm’s length and suitable provisions of Section 197 of the Companies Act, 2013.
disclosure has been provided in annual accounts. Therefore, such particulars have not been included as
Approval has been taken from the Audit Committee part of Directors’ Report.
where the transaction with related party falls under the (17) Issue of Shares in the Financial Year:
purview of the Companies Act, 2013. All related party During the year under review, the Company issued
transactions were in the ordinary course of business shares to NTPC and Bihar State Power Generation
and were negotiated on an arm’s length basis. They Company Limited. The details are as under:
were intended to further the Company’s interests.
Accordingly, the disclosure of Related Party Transactions Date of Allotment/ 12.04.2016 21.09.2016
as required under Section 134(3)(h) of the Companies Name of Allottee
Act, 2013 in Form AOC-2 is not applicable. NTPC Limited 3,10,27,984 84,50,000 shares
(13)
Significant and material orders passed by the shares of ` 10/- of ` 10/- each at
regulators or courts or tribunals impacting the going each at par with par with existing
concern status and company’s operations in future existing equity equity holders
NIL. Contingent Liabilities are detailed in Note – 36 of holders
Notes to Accounts to Financial Statements for the FY Bihar State Power 1,67,07,376 45,50,000 shares
2016-17. The details of disputed statutory dues pending Generation Company shares of ` 10/- of ` 10/- each at
before appropriate authorities is detailed in Annexure Limited each at par with par with existing
to Independent Auditors’ Report. existing equity equity holders
(14) Adequacy of internal financial controls with reference holders
to the financial reporting (18) No disclosure or reporting is required in respect of the
The Company has in place adequate internal financial following items as there were no transactions on these
controls with reference to financial reporting. During items during the year under review:
the year, such controls were tested and no reportable 1. Issue of equity shares with differential rights as to
material weaknesses in the design or operation were dividend, voting or otherwise.
observed. 2. Issue of shares (including sweat equity shares) to
(15) Procurement from MSEs employees of the Company under any scheme.
The Government of India has notified a Public Establishment of vigil mechanism/ whistle blower
(19)
Procurement Policy for Micro and Small Enterprises policy:
(MSEs), Order 2012. In terms of the said policy, the total Your Company has established Whistle Blower Policy as
procurement made from MSEs (including MSEs owned required under Section 177 (9) of the Companies Act,
by SC/ST entrepreneurs) during the year 2016-17 is 2013 read with Rule 7 of the Companies (Meeting of
` 13,47,12,493/-* which is 22.68% of total procurement Board and its Powers) Rules, 2014.
against target of 20% of total procurement made by
(20) The Company has not granted any loans, given any
your Company.
guarantee or made any investments under Section 186
*It excludes Primary fuel, Secondary fuel, Steel & of the Companies Act, 2013 during the year.
Cement, the Project procurement including R&M
(21) The Company has not accepted any deposits during
packages and procurement from OEM, OES & PAC
the year.
sources.
(22) The Company has no subsidiary or joint venture.
(16) Particulars of Employees
As per provisions of Section 197(12) of the Companies (23) No Presidential Directive was issued by the Government
Act, 2013 read with the Rule 5 of the Companies during the year under review.
(Appointment and Remuneration of Managerial (24) The Company has not declared any dividend during the
Personnel) Rules, 2014, every listed company is year.
required to disclose the ratio of the remuneration of (25) KBUNL, being subsidiary of NTPC, it is covered under
each director to the median employee’s remuneration the Internal Complaints Committee constituted by NTPC
and details of employees receiving remuneration under the provisions of Sexual Harassment of Women
exceeding limits as prescribed from time to time in the at Workplace (Prevention, Prohibition and Redressal)
Directors’ Report. Act, 2013.
94
A Maharatna Company
The particulars of annexures forming part of this report are Shri Ashwini Kumar Singh was repatriated to the Parent
as under: Company i.e. NTPC Limited on 21.01.2017 as he was attaining
the age of superannuation on 31.01.2017. He ceased to be
Particulars Annexure the Chief Financial Officer of the Company w.e.f. 21.01.2017.
Management Discussion & Analysis I Shri Kundan Kumar Mishra, DGM (Finance) was appointed as
Report on Corporate Governance II the Chief Financial Officer of the Company w.e.f. 21.02.2017.
Extract of Annual Return III Shri Vinay Kumar Mittal, AGM (Finance) was appointed as
Annual Report on CSR Activities IV the Chief Financial Officer of the Company w.e.f. 18.05.2017
after his posting to KBUNL on secondment basis from NTPC
Secretarial Audit Report in Form MR-3 V
in place of Shri Kundan Kumar Mishra.
DIRECTORS’ RESPONSIBILITY STATEMENT
The Board wishes to place on record its deep appreciation
As required under Section 134 (5) of the Companies Act, for the valuable services rendered by Shri Manish Kumar
2013, your Directors confirm that: Verma during their association with the Company.
1. in the preparation of the annual accounts, the As per the provisions of the Companies Act, 2013, Shri P.
applicable accounting standards had been followed Amrit and Shri K.S. Garbyal, Directors shall retire by rotation
along with proper explanation relating to material at the ensuing Annual General Meeting and being eligible,
departures; offer themselves for re-appointment.
2. the Directors had selected such accounting policies ACKNOWLEDGEMENT
and applied them consistently and made judgments
and estimates that are reasonable and prudent so as Your Directors acknowledge, with deep sense of
to give a true and fair view of the state of affairs of the appreciation, the co-operation extended by Ministry of
company at the end of the financial year 2016-17 and Power/ Government of India, Government of Bihar, Bihar
of the loss of the company for that period; State Power Generation Company Limited (erstwhile
Bihar State Electricity Board), Planning Commission (Niti
3. the Directors had taken proper and sufficient care Aayog), Central Electricity Regulatory Commission, Ministry
for the maintenance of adequate accounting records of Environment, Forests & Climate Change and Airport
in accordance with the provisions of the Companies Authority of India.
and for preventing and detecting fraud and other Your Directors also convey their gratitude to the Holding
irregularities; Company i.e. NTPC Ltd., Auditors, Bankers, Contractors,
Vendors and Consultants of the Company.
4. the Directors had prepared the Annual Accounts on a
going concern basis; and We wish to place on record our appreciation for the untiring
efforts and contributions by the employees at all levels to
5. the Directors had devised proper systems to ensure ensure that the Company continues to grow and excel.
and that such systems were adequate and operating
effectively.
BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL For and on behalf of the Board of Directors
During the year under review, BSPGCL nominated
Shri R. Lakshmanan, Managing Director, BSPGCL as Director (K.K. Sharma)
on the Board of KBUNL in place of Shri Manish Kumar Verma. Place: New Delhi Chairman
The Board appointed him as the Director of the Company Dated: 30.08.2017 DIN: 03014947
w.e.f. 25.04.2016.
95
A Maharatna Company
Annexure- I to the Directors’ Report of KBUNIL

ECONOMIC AND SECTOR OUTLOOK and energy deficit was 2.6% and 1.1% respectively as
Indian economy has moved on a higher growth path. Gross against the peak power deficit and energy deficit of
Domestic Product for Financial Year 2016-17 has increased 3.2% and 2.1% during financial year 2015-16.
by 7.1% over the previous financial year. Electricity, water (Source: Central Electricity Authority)
supply gas and other utilities have registered a growth rate Existing Installed Capacity
of 7.2% at constant prices. With macro-economic stability,
The total installed capacity in the country as on March 31,
Indian economy is slated to grow between 7-8 percent
and electricity generation will play a key role in India’s 2017 was 326848.54 MW (including renewable) with private
development. sector contributing 44% of the installed capacity followed
by State Sector with 32% share and Central Sector with 24%
For the power sector, the two recent biggest announcements share.
pertain to rural electrification and solar energy. The
Government has reiterated its priority to achieve “100 Total Capacity (MW) % share
percent village electrification” by May 1, 2018. Giving State 103967.28 32
impetus to the clean energy, the government has also
Centre 80257.25 24
announced the second phase of solar development for 20
GW capacity. Private 142624.01 44
This augurs well for the entire Power Sector and would Total* 326848.54 100
unleash the huge latent demand for electricity. *including RES
The year has been the land mark year for renewable energy. Source: Central Electricity Authority-Installed Capacity
For the first time, renewable capacity addition matched the report
convention thermal capacity addition. With solar tariffs During the financial year 2016-17, capacity of 14209.80
touching new lows which are even lower than the coal-fired MW (excluding renewable) was added. With this the total
power tariff, the landscape of the power sector is going to capacity addition during the 12th plan period is 99209.47
change rapidly. MW (excluding renewable) which is about 112.05% of the
INDUSTRY STRUCTURE AND DEVELOPMENTS planned capacity addition of 88537 MW for the Plan.
Power Sector is a key enabler for India’s economic growth. Capacity Utilization and Generation
The sector consists of generation, transmission and Capacity utilisation in the Indian power sector is measured
distribution utilities and is a crucial component of India’s by Plant Load Factor (PLF).
infrastructure. The achievements regarding developments
Sector wise PLF (Thermal) (in %)
and various issues/challenges faced by the Power Sector
have been discussed in the ensuing paragraphs. Sector 2015-16 2016-17
Snap Shot 2016-17 State 56.83 54.35
Central 71.03 71.98
Ø Gross annual generation of the country increased by
Private 60.07 55.59
4.72% from 1107.82 BUs in the previous year to 1160.14
BUs in the financial year 2016-17. All India 62.24 59.88
Ø Generation capacity of 14209.8 MW (excluding The overall decline in PLF was mainly due to backing down/
renewable) added during the year compared to shut down of units on account of low schedule from
23976.60 MW added in the previous year. beneficiary states(Source: Central Electricity Authority).
Ø Land mark year for renewable energy. 14410.85 MW The outlook of generation looks promising with expected
Capacity added during the year. increased industrial production and Government of India’s
Ø 26300 Ckms of transmission lines added during the year
mission to provide 24x 7 electricity to all.
as compared to 28114 Ckms in the previous year.
Ø 81816 MVA of transformation capacity added during Existing Generation
the year as against 62849 MVA in the previous year, a The total power available in the country during the financial
jump of 30%. year 2016-17 was 1160.14 billion units as compared to
Ø PLF of thermal stations declined from 62.24% in financial 1107.82 billion units during last year, registering a growth of
year 2015-16 to 59.88% in the financial year 2016-17. 4.72%. (generation figures pertains to monitored capacity
Ø During the financial year 2016-17, peak power deficit by CEA)
96
A Maharatna Company
Sector-wise and fuel-wise break-up of generation (BUs) for (b) Cross Border Electricity Trade Policy: At present,
the year 2016-17 is detailed as under: Cross Border Trade of Electricity has been taking
place with Bangladesh, Bhutan and Nepal under
Sector Thermal Hydro Nuclear Bhutan Total bilateral Memorandum of Understanding (MoU) /
Import Power Trade Agreement (PTA). In order to facilitate
Central 337.92 57.90 37.92 - 433.74 and promote cross border trade of electricity with
State 299.59 51.35 - - 350.94 greater transparency, consistency and predictability
Pvt/IPP 356.72 13.12 - - 369.84 in regulatory approaches across jurisdictions and
Bhutan - - - 5.62 5.62 minimise perception of regulatory risks, GoI has issued
Import guidelines on Cross Border Trade of Electricity. This
policy is likely to help in creating demand for the
Total 994.23 122.37 37.92 5.62 1160.14
Gencos.
(Source: Central Electricity Authority)
(c) Amendment in the IEGC (4th) Amendment to allow
As far as Thermal generation is concerned, based on the
compensation on account of partial loading of the
monitored capacity by CEA, the generation contribution
units
of central sector is 33.98% with installed capacity share
of 28.32%, state sector contributes 30.13% of generation i. CERC has allowed Compensation due to
with installed capacity share of 33.12% and private sector degradation of the operational parameters like
contributes 35.89% of generation with installed capacity Heat rate and auxiliary power consumption due
share of 38.56%. Central Sector utilities have better to lower loading of the units. For this purpose,
performing stations as compared to those of State utilities CERC has defined the technical minimum level of
and Private Sector. operation as 55% and has allowed compensation
when unit operations are below 85% and upto
Consumption
55%. These compensations will be in the form
In terms of per capita power consumption, India ranks of increased norms in the Heat rate and APC as
among the lowest in the world. The per capita consumption per different factors for different ranges of unit
of power in India is just 1075 units in financial year 2015-16 loading, as provided in the Regulations.
(provisional). (Source: Central Electricity Authority Executive
ii. It has also been provided that a unit can go under
Summary March 2017).
Reserve Shut Down (RSD) in case the schedules
Major end users of power can be broadly classified are below 55%. In these cases, the Units will be
into industrial, agricultural, domestic and commercial compensated for the additional oil consumption
consumers. These consumers represented approximately on account of higher start/stop of the units.
42%, 17%, 24% and 9%, respectively, of power consumption
iii. CERC in its order dated 5th May 2017 has
measured by units of electricity consumed in the year 2015-
approved a detailed procedure for calculation
16 (provisional). Traction & Railways and others represented
of the compensation amount and process of
about 8% of power consumption. The electricity
apportionment among the beneficiaries.
consumption in Industry sector and domestic sector has
increased at a much faster pace compared to other sectors (d) Reduction in coal import: On account of increased
during 2006-07 to 2015-16 with CAGR of 9.47% and 7.97% production of domestic coal, imports have fallen from
respectively (Source: Ministry of Statistics and Programme 217.78 MT in 2014-15 to 199.88 MT in 2015-16, a decline
Implementation- Energy Statistics 2017). of 8%. The trend of fall in import of coal has continued
in 2016-17.This has helped the country in reducing cost
Energizing the Power Sector – Key Initiatives / Reforms &
of electricity generated in coal based power plants and
Regulatory Changes
reduction in forex expenditure.
(a) Flexibility in utilization of domestic coal: GoI has
(e) UJALA: Government has identified lighting as key focus
allowed flexibility in utilisation of domestic coal for
area for energy efficiency. Under the Unnat Jyoti by
reducing the cost of power generation. The Annual
Affordable LEDs for All (UJALA), more than 24 crore
Contracted Quantity (ACQ) of each coal linkages
LED bulbs have been distributed. This will help in a
would be aggregated as consolidated ACQ for each
recurring saving of ` 34.95 crore and 87 MU per day
State/Central/Private Gencos. These Gencos now have
in terms of cost and energy respectively. It will also
flexibility in use of such coal amongst their different
help in reduction of CO2 to the extent of 70,780 ton
generating stations. This will facilitate power producers
per day thereby reiterating India’s commitment made
to use coal optimally in more efficient generating
at Conference of Parties (COP) 21 Summit held in Paris
stations resulting in reduction in the power purchase
to reduce its energy intensity.
cost for Discoms.
97
A Maharatna Company
(f) SHAKTI (Scheme for Harnessing and Allocating Koyala The power supply position in Eastern Region and Bihar
(Coal) Transparently in India): During the current during 2016-17 is as under:
financial year (FY 17-18), GoI has introduced the Scheme,
Particulars Year 2016-17 (Actual) Year 2017-18 (Anticipated)
‘SHAKTI’ to make coal allocation more transparent and
Req Avail Surplus/ Req Avail Surplus/
bidding based. As per the Scheme, future allocation/ (Deficit) (Deficit)
grant of linkages to power producers/ IPPs will be
Energy Requirement
based on auction.
Eastern 1,27,783 1,26,868 (915 MUs) 1,50,151 1,49,871 (280 MUs)
The Scheme shall benefit the sector in terms of coal Region (in (0.8%) (0.2%)
availability to all power plants in transparent and MU)
objective manner, cheaper and affordable power, Bihar (in MU) 25,712 25,131 (581 MUs) 26,600 21,207 (5,393
(2.2%) MUs)
reduction of sectoral stress on account of non-
(20.3%)
availability of linkages to power projects thereby
Peak Requirement
enhanced confidence of financial institutions on power
Eastern 18,908 18,788 (120 MW) 21,577 23,743 2,166 MW
sector. Region (In (0.6%) 10%
(g) Portal on weather information: Due to enhanced MW)
presence of Renewable Energy in the Indian power Bihar (In 3,883 3,759 (124 MW) 4,000 3,494 (506 MW)
sector, weather information like irradiance, wind MW) (3.2%) (12.7%)
speed etc. have become very important. Besides,
From the above, it is evident that there have been energy
whether information is also very important for load
and peak shortages in the Eastern Region as well as in Bihar
forecasting. During the current financial year (FY 17-
during the year 2016-17. In the year 2017-18, there would be
18), GoI has launched whether Portal for Power Sector
anticipated energy shortages both in Bihar and the Eastern
in association with POSOCO and IMD. The information
Region. Although, from the above, it is clear that there
available in the Portal regarding weather forecast shall
would be enough power available for peak requirement in
help State Discoms to take pro-active steps regarding
Eastern Region during 2017-18, there would be shortage of
short term and medium term management processes
506MW of power in Bihar for peak requirements.
and supply planning requirements and also for better
planning for infrastructure availability to ensure cost SWOT ANALYSIS
effective and reliable supply. Strength/ Opportunity:
Demand, Supply and Consumption Position In the scenario of high demand versus low supply of power,
Western, Southern & Eastern Regions met the demand almost implementing the Company’s project is justified. It has full
in full with insignificant demand-supply gap both in terms support of NTPC, the promoter and major stake holder. The
of energy and peaking. Northern & North-Eastern Regions holding Company, i.e. NTPC Limited is providing engineering
experienced minor demand-supply gap in terms of energy and management expertise from planning to commission
and/or peaking, on an overall basis. The demand-supply gap and operating power plant.
was on account of the factors other than non-availability of The other promoter i.e. Bihar State Power Generation
power e.g. transmission & distribution constraints. However, Company Limited (erstwhile Bihar State Electricity Board) is
there were short-term surpluses in most of the states at also the beneficiary of the Company.
some point of time or the other depending on the season
Unit#1 and Unit#2 of 110 MW each of Stage-I have been
or time of the day. The surplus power was sold to deficit
declared commercial. Unit#3 and Unit # 4 of Stage-II
states or consumers either through bilateral contracts,
has been synchronised on 31.03.2015 and 24.03.2016
Power Exchanges or traders. (Source : Load Generation and
respectively. Unit # 3 have been declared commercial wef
Balance Report 2017-18) .
18.03.2017.
During the year 2016-17, total ex-bus energy availability
For Stage-I, Power Purchase Agreement for entire power
increased by 4.1% over the previous year and the peak
exists with transmission companies of Bihar State Power
met increased by 5.7%. The energy requirement registered
Holding Company Limited. For Stage-II, Power Purchase
a growth of 2.6% during the year against the projected
Agreement has been signed with transmission companies of
growth of 9.0% and Peak demand registered a growth of
Bihar State Power Holding Company Limited for 67.7 % of
4.0% against the projected growth of 7.8%.
power and balance has been signed with the GRIDCO, DVC,
Sikkim, Jharkhand and West Bengal. Further 7.27 % power
is allocated to Bihar from the un-allocated share of 9.7 %
vide letter dated 27.06.2017 from Member Secretary, ERPC,
98
A Maharatna Company
Ministry of Power. This will be w.e.f. from 00:00 hrs of COD up water system and availability of cooling water both
of Unit # 4 i.e. 01.07.2017. for Stage – I and Stage – II is required for uninterrupted
Weakness/ Threats: operation of the plant.
For Stage-II except Dis-coms Bihar state other beneficiaries Risk: Land Acquisition for around 25.5 Acres of land for
are not giving schedule due to dispute raised by Gridco make up water pipe line laying not yet completed. Non-
Orissa. The beneficiary of Stage-I power i.e. South Bihar Completion of makeup water system affecting the operation
Power Distribution Co. Ltd. and North Bihar Power of Stage-II units. However, water is being drawn from Canal
Distribution Co. Ltd has overdue payment towards energy of Irrigation Deptt. Govt.of Bihar but water availability in
bills raised by the Company. Delayed payment of Energy Bills canal is for limited periods only.
from beneficiaries causes stoppage of coal supply which District Administrtion is pursuing with land owner for
results into shutting down of operating units resulting under consent towards perpetual lease.
recovery of fixed cost and compensation claimed by coal Ash Disposal System for Stage – I & II and Coal Handling
companies for short lifting of coal. Plant of Stage-II:
For both the stages proper realization arrangement like Ash Dyke Stage-I – New Ash dyke (Lagoon –III) & R&M of
Tripartite agreements is the need of the hour. Lagoon I&II along with AWRS (Ash Water Recirculation
RISK AND CONCERN System) is to be constructed as per directive of CPCB.
The work for Ash dyke (Lagoon I, II & III as per above) has
The risks to which company is exposed and the initiatives
been awarded on 5 Aug’2017. Technical bid for AWRS
taken by the company to mitigate such risks are given below:
opened and is under evaluation. A bank guarantee has
Hazard risks are related to natural hazards arising out of been submitted to Bihar State Pollution Control Board in
accidents and natural calamities like fire, earthquake or compliance of CPCB directive. NOC for consent to operate &
cyclone, floods etc. consent to discharge issued by BSPCB is valid till 30.11.2018.
Risk associated with protection of environment, safety Risk - A program for construction of Ash Dyke (Lagoon –
of operations and health of people at work is monitored III) & AWRS has been submitted. Revised time line is to be
regularly with reference to statutory regulations prescribed submitted again for consideration of CPCB. CPCB may give
by the govt. authorities. Risk arising out of accidents, fire etc any direction as per EP Act.
is protected through insurance policies and limited through
Ash Dyke for Stage – II Contract has been awarded & work
contractual agreements wherever possible.
is progressing & lagoon is likely to be completed by Oct’17.
Financial Risks:
Risk: Work on the available stretch of ash pipe corridor
With the declaration of both the units commercial the has been started by company. Compensation amount of
company managed to avoid the declaration of its asset as Rs. 14.82 Crores has been deposited with Land acquisition
NPA in Lender’s books of accounts. authority. 15.84 acres out of 36.765 acres is yet to be given
Unit # 3 declared commercial w.e.f. 18.03.2017 & U# 4 w.e.f. possession as land owners are not taking compensation/
01.07.2017. disbursement. Further action will be taken by DLAO/
The outstanding dues from the beneficiaries on account of Authority. Administration has assured that there will not
Energy Bill stood ` 211.24 crores (including late payment be hindrance during execution of work on part of the land
surcharge of ` 9.9 Crores) as on 25.07.2017. The dues corridor which is not in possession. However, Stage-II ash is
beyond 60 days stood at ` 143.87 crores & ` 29.81 crores being dumped in stage – I dyke as contingency measure, till
beyond 30 days but less than 60 days. Realization of dues ash dyke Stage-II & ash pipe line work is completed.
from the beneficiaries for both the stages should be at Coal Handling Plant for Stage-II is not yet constructed but
utmost priority level so that timely repayment of loan and CHP of Stage-I has been linked for feeding Stage-II ( Priority
interest can be made. bay). Due to this, commercial operation of both the units
For the Financial Year 2016-17, the coal compensation have been declared but running of all the units (both stage
payable is ` 25.67Cr for non-lifting of coal as per annual – I & stage – II) is not possible on sustainable basis.
contracted quantity. The policies and process framework of the company
Operational Risks: supported by the proactive approach of management
mitigate operational risks to great extent.
Water linkage and quantity:
INTERNAL CONTROL
At present water requirement is being met through under-
ground water with running of Deep Tube Well as well as The Company has robust internal systems and processes for
drawing water from canal. CWC has given their consent for efficient conduct of business. The Company is complying
45 Cusecs of water on 19.02.2010 from river Budhi Gandak with relevant laws and regulations. It is following delegation
(15 Cusecs for Stage-I and 30 Cusecs for Stage-II). Water of powers as is being followed in NTPC Limited. The accounts
Resources Department, GoB has made their commitment of are being prepared in accordance with the Accounting
45 Cusecs of water from Budhi Gandak. Readiness of Make- Standards issued by Institute of Chartered Accountants of
99
A Maharatna Company
India from time to time and as per the guidelines issued i. The Company has elected to measure all of its property,
from NTPC Limited. The Company has implemented SAP in plant and equipment and intangible assets at their
all modules. It is helping the Company a lot in retrieving data previous GAAP carrying value.
and maintaining systematic backup. ii. The Company has elected to continue the policy
In order to ensure that all checks and balances are in place adopted for accounting for exchange differences
and all internal systems are in order, regular and exhaustive arising from translation of long-term foreign currency
internal audits are conducted by experienced firm of monetary items recognised in the financial statements
Chartered Accountants in coordination with Internal Audit for the period ending immediately before the beginning
Department of NTPC Limited. The Company has constituted of the first Ind AS financial reporting period as per the
an Audit Committee to oversee the financial performance Indian GAAP
of the company. The scope of this Committee includes During the financial year 2016-17, 3,94,77,984 shares were
compliance and adequacy of Internal Control Systems in issued to NTPC and 2,12,57,376 shares were issued to
the Company. Bihar State Power Generation Company Limited (BSPGCL)
FINANCIAL DISCUSSION AND ANALYSIS (erstwhile BSEB). The equity share capital of the Company
has reached ` 1,122.24 crore, which is in the ratio of 65:35
The Company has prepared its first Financial Statement AS
between NTPC and BSPGCL at the end of financial year
in accordance with Ind As for the year ended 31 March
2016-17. The Company has enhanced the authorized share
2017. For periods up to and including the year ended 31
capital of the Company from ` 1,400 crore to ` 2,000 crore.
March 2016, the Company prepared its financial statements
Share application money pending allotment was ` 233.43
in accordance with Indian GAAP, including accounting
crore.
standards notified under the Companies (Accounting
Standards) Rules, 2016 (as amended). The effective date for The grants received from Backward Region Grants Fund
Company’s Ind AS Opening Balance Sheet is 1 April 2016 (Rashtriya Sam Vikas Yojna) was credited to capital reserve
(the date of transition to Ind AS). account initially and the same was treated as income in
the same proportion as the depreciation written off on
The accounting policies set out in Note 1 to the Financial
the assets acquired out of grants. Although no grant was
Statements have been applied in preparing the financial
received during the year, but grant of ` 40.12 crore received
statements for the year ended 31 March 2017, the
out of grants of previous years has been recognised as
comparative information presented in these financial
income during the year.
statements for the year ended 31 March 2016 and in the
preparation of an opening Ind AS Balance Sheet at 1 April Secured term loan as on 31.03.2017 was ` 1773.83 crore
2015 ( the Company’s date of transition). Accordingly from consortium led by State Bank of India. The secured
to Ind AS 101, the first Ind AS Financial Statements must loan from other financial institutions was ` 533.05 crore.
use recognition and measurement principles that are The unsecured loan from the Holding Company stood at
based on standards and interpretations that are effective ` 121 crore at the end of the financial year. Your Company
at 31 March 2017, the date of first-time preparation of has made no defaults in repayment of any of the loans or
Financial Statements according to Ind AS. These accounting interest thereon as at the end of the year.
principles and measurement principles must be applied The net tangible assets as at 31.03.2017 were ` 2,669.23
retrospectively to the date of transition to Ind AS and crore as compared to ` 677.83 crore as at 31.03.2016. The
for all periods presented within the first Ind AS Financial net intangible assets as at 31.03.2017 were ` 0.02 crore
Statements. as compared to ` 0.03 crore as at 31.03.2016. The capital
Any resulting differences between carrying amounts of work-in-progress was ` 1,679.21 crore as at 31.03.2017
assets and liabilities according to Ind AS as of 1 April 2015 as compared to ` 3,228.24 crore as at 31.03.2016. As on
compared with those presented in the Indian GAAP Balance 31.03.2017, Capital Advances (unsecured) were ` 85.47
Sheet as of 31 March 2015, were recognized in equity under crore and advances other than capital advances were ` 4.19
retained earnings within the Ind AS Balance Sheet. crore. As on 31.03.2016, Capital Advances (unsecured) were
` 79.75 crore and advances other than capital advances were
Exemptions and Exceptions Availed
` 4.05 crore. The current assets stood at ` 222.25 crore as at
In the Ind AS Opening Balance Sheet as at 1 April 2015, 31.03.2017, while the current assets as at 31.03.2016 were
the carrying amounts of assets and liabilities from the Indian ` 257.78 crore.
GAAP as at 31 March 2015 are generally recognized and
Borrowing costs attributable to the fixed assets during
measured according to Ind AS in effect as on 31 March 2017.
construction, renovation and modernisation have been
For certain individual cases, however, Ind AS 101 provides
capitalised. Such borrowing costs have been apportioned
for optional exemptions and mandatory exceptions to the
on the average balance of capital work-in-progress for the
general principles of retrospective application of Ind AS.
year. Other borrowing costs are recognised as an expense in
The Company has made use of the following exemptions the period in which they are incurred. The borrowing costs
and exceptions in preparing its Ind AS Opening Balance capitalised during the year ended 31.03.2017 amounted to
Sheet: ` 229.73 crore (Previous year ` 211.39 crore).
100
A Maharatna Company
The generation from Unit#1 was 382.28 MUs and Unit#2 HUMAN RESOURCE
was 369.87 MUs. Commercial operation of Unit#1 had Presently, the Company has total strength of 206 employees,
commenced from 01.11.2013 and Unit#2 became fully out of which, 201 employees are deputed from the Holding
operational from 15.11.2014 after R&M. Company i.e. NTPC Limited and 5 employees are on the
For Unit#1, Central Electricity Regulatory Commission issued rolls of KBUNL. Out of the total strength, the company
tariff order dated 09.02.2016 for the period 01.11.2013 has employed 29 SC candidates, 10 ST candidates and 44
to 31.03.2014. KBUNL has filed a petition for review of OBC candidates as a socially responsible and conscious
CERC order dated 09.02.2016. CERC vide its order dated organisation. Apart from 206 employees, the Company has
07.07.2017 disposed of the review petition and rejected 2 Executive Trainees also posted at Site office.
KBUNL’s prayer for review of order dated 09.02.2016. The Company is paying adequate perks and also making
In view of CERC order dated 09.02.2016, Unit#1 billing was employees part of profit sharing by giving Profit Related
revised w.e.f. 01.11.2013 (COD of U# 1) as per order. Unit # Payment. They are being imparted training / participation
2 billing is as per 85 % of fixed charges, filed in the petition in seminar for their professional upgradation from time
before CERC for 2014-19. to time as an endeavour of your Company to become a
The revenue from operations amounting to ` 388.25 crore learning organisation. The Company had incurred ` 44.98
(Previous year ` 375.52 crore) during the financial year crore (previous year ` 41.95 crore) - towards Salaries,
included energy sales, energy internally consumed and Wages, Allowances, Benefits, Contribution to Provident and
capital grants recognised during the year. The other income other Funds and welfare expenses. Out of ` 44.98 crore,
of ` 28.05 crore included interest from banks, income from the amount transferred to Expenditure during Construction
sale of scrap, other receipts from contractors/ suppliers, amounted to ` 12.75 crore and transferred to fuel cost
etc. The expenses were ` 438.23 crore, which included amounted to ` 1.88 crore.
expenditure towards fuel, employee benefit expenses, During the year, the Company organised two meetings with
finance cost, depreciation & amortisation expenses, the employees/ representatives & two open house with all
generation & administration expenses, etc. There is no tax executives to know their problems and to resolve the same
liability in this year. The Company incurred loss of ` 21.93 to make the environment congenial.
crore as against the last year’s loss of ` 58.21 crore. Safety is being taken on topmost priority with adopting best
Total sales of ` 348.13 crore (previous year ` 335.40 Crore) safety practices. Safe methods are practised in all areas
was recorded for the year 2016-17 which included ` 5.92 of Operation & Maintenance and Construction & Erection
crore (previous year ` 5.28 crore) towards energy consumed activities for the protection of workers against injury and
internally. The CERC has issued final tariff order for U#1 for diseases.
the period 01.11.2013 - 31.03.2014. Sales for the FY 2016- Occupational safety at workplace is given utmost
17 have been provisionally accounted for both units (U#1 & importance. Safety Kiosk has been installed & training being
U#2) based on the CERC order Dt. 09.02.2016. U#1 of Stage- provided to workers.
II (2x195 MW) was declared commercial w.e.f. 18.03.2017.
Fixed charges accounting of this unit has been done based OUTLOOK
on the 85% of fixed charges claimed in tariff petition filed The Company’s outlook is very bright. It is generating
with CERC. For variable charges parameters has been taken revenue for growth and development of the company
based on 210 MW size units since no comparative units of after becoming operational. It is also boosting employment
this size of 195 MW is operational. opportunities to the local inhabitants.
Pending issue of Tariff orders w.e.f. 01.01.2014 for KBUNL, CAUTIONARY STATEMENT
beneficiaries are billed with the tariff approved and Statements in the Management Discussion and Analysis,
applicable on the GCV “as received” measured after the describing objectives, projections and estimates, are
secondary crusher till 30th September 2016 and GCV forward-looking statements and progressive, within the
measured on Wagon Top w.e.f. 01.10.2016. meaning of applicable security laws and regulations.
An amount of ` 24.46 crore is recoverable from beneficiaries Actual results may vary from those expressed or implied,
of Stage-I as interest due to late payments of bills and depending upon economic condition, Government policies
was accounted under the head ‘Surcharge income from and other incidental/ related factors.
beneficiary’.
The Company has made Net Loss after Tax of ` 21.93 crore. For and on behalf of Board of Directors
The reasons for the loss are as below:-
1. During the FY 2016-17, Plant Availability Factor of (K.K. Sharma)
38.72% & 45% could be achieved in Stage-I & Stage-II Chairman
respectively. Due to low PAF, fixed cost recovery was (DIN: 03014947)
on lower side for both the stages. Place: New Delhi
2. The main reason for low PAF was coal shortage. Dated: 30.08.2017
101
A Maharatna Company
Annexure - II to the Directors’ Report of KBUNIL

REPORT ON CORPORATE GOVERNANCE
1. Company’s Philosophy on Code of Governance i. Composition of the Board
Corporate governance is creation of and enhancing The Company is managed by the Board of Directors
long-term sustainable value for the stakeholders through which formulates strategies and policies and
ethically driven business process. Your Directors are keeps updating them regularly. As per the Articles
pleased to present the Corporate Governance Report of Association, the number of Directors shall not
for the financial year 2016-2017. The Corporate be less than 4 and more than 12 subject to the
Governance philosophy is scripted as: condition that NTPC shall always have one Director
more than the combined strength of Director
“Corporate Governance is more than a set of processes
nominated by BSPGCL (formerly BSEB)/Govt. of
and compliances at Kanti Bijlee Utpadan Nigam Limited.
Bihar, the respective parties shall determine the
It underlines the role that we see for ourselves for
period for which their respective nominees shall
today, tomorrow and beyond.”
hold office.
In line with its commitment to enhance stakeholders’
ii. Independent Directors
values, KBUNL believes in adhering to the standards of
corporate ethics that enables principled goal setting, As per the Companies Act, 2013 and the DPE
effective decision making and appropriate monitoring Guidelines on Corporate Governance for
of compliance and performance. The Company CPSEs, the Company was required to appoint
believes that its business practices should be founded two Independent Directors on the Board. The
on transparency, disclosure, accountability and Promoter Company had taken up the matter
financial controls, the four pillars of a good corporate with Department of Public Enterprises, to either
governance system. appoint Independent Directors or allow NTPC
and BSPGCL to appoint Independent Directors.
We believe that our company shall go beyond
However, Ministry of Corporate Affairs, through
adherence to regulatory & statutory framework. The
Notification dated 05.07.2017, has exempted the
Company expects to realise its Vision by taking such
public unlisted Joint Venture Companies from
actions as may be necessary in order to achieve its
appointing Independent Directors.
goals of value creation, safety, environment protection
and people’s health and progress. Also, we understand that the DPE Guidelines are
under revision to align it with the Companies Act,
We follow Guidelines on Corporate Governance
2013.
for Central Public Sector Enterprises issued by the
Department of Public Enterprises, Government of India iii. Woman Directors
to the extent such compliances are within the ambit of
As per the requirements of the Companies Act,
the Company.
2013, the Company has one Woman Director on its
2. Board of Directors Board.
Our corporate structure, business, operations and iv. Board Meetings
disclosure practices have been strictly aligned to our
As on 31.03.2017, there were 6 (six) Directors
Corporate Governance Philosophy.
on the Board out of which four Directors were
The Board of Directors is the apex body constituted nominated by NTPC and two Directors were
by shareholders for overseeing the Company’s overall nominated by BSPGCL.
functioning. Over the years, the Board has always
During the year, 6 (six) Meetings of the Board
endeavoured to fulfil corporate responsibility towards
were held on 06.05.2016, 28.07.2016, 21.09.2016,
our stakeholders. The Board has necessary authority
29.11.2016, 08.12.2016 and 21.02.2017. The
and processes to review and evaluate our operations
attendance of Directors in Board Meetings is as
when required. Further, the Board makes decisions that
under:
are independent of the Management.
102
A Maharatna Company
Date of the Meeting/ Name of BOARD MEETINGS

the Director DIN 06.05.16 28.07.16 21.09.16 29.11.16 08.12.16 21.02.17
Shri K.K. Sharma, Chairman

03014947 Yes Yes Yes Yes Yes Yes
(Nominated by NTPC)
Shri P. Amrit, Director
01192117 Yes No Yes Yes No Yes
(Nominated by BSPGCL)
Shri A.K. Gupta, Director
07269906 No Yes No No Yes Yes
(Nominated by NTPC)
Shri K.S. Garbyal, Director
07027435 Yes Yes Yes Yes Yes Yes
(Nominated by NTPC)
Smt. Sangeeta Bhatia, Director
06889475 Yes Yes No No Yes Yes
(Nominated by NTPC)
Shri R. Lakshmanan
06908182 Yes Yes No Yes Yes Yes
(Nominated by BSPGCL)
v. Number of Shares held by the Directors as on A. Audit Committee
31.03.2017 The term of reference of Audit Committee is in
accordance with Section 177(4) of the Companies Act,
Directors No. of shares 2013 and DPE Guidelines on Corporate Governance for
CPSEs, which includes the following:
Shri K.K. Sharma 100
(i) Discussions with the Auditors about the scope
Shri P. Amrit 100 of audit including observations of auditors;
(ii) Oversight of the Company’s financial reporting
Shri A.K. Gupta Nil process and the disclosure of its financial
information to ensure that financial statement
Shri K.S. Garbyal 100 are correct, sufficient and credible;
Smt. Sangeeta Bhatia 100 (iii) Noting appointment and removal of external
auditors. Recommending audit fee of external
Shri R. Lakshmanan 200 auditors and also approval for payment for any
other service;
3. Committees of the Board (iv) Recommending appointment and remuneration
Our Board has constituted sub-committees to focus on of Cost Auditors;
specific areas and make informed decisions within the (v) Review and monitor the auditor’s independence
authority delegated to each of the Committees. Each and performance, and effectiveness of audit
Committee of the Board is guided by its Charter, which process;
defines the scope, powers and composition of the (vi) Approval or any subsequent modification of
Committee. All decisions and recommendations of the transactions of the company with related parties;
Committees are placed before the Board for information (vii) Scrutiny of inter-corporate loans and
and approval respectively. Senior functional executives investments;
are also invited, as and when required, to provide (viii) Valuation of undertakings or assets of the
necessary information/clarification to the Committees company, wherever it is necessary;
of the Board. We have following sub-committees of the (ix) Evaluation of internal financial controls and risk
Board as on 31.03. 2017: management systems;
(x) Monitoring the end use of funds raised through
A. Audit Committee public offers and related matters;
B. Nomination and Remuneration Committee (xi) Receiving the findings of any internal investigation
C. Corporate Social Responsibility Committee by the internal auditors into matters where there
D. Committee of the Board for Allotment and Post is suspected fraud or irregularity or a failure
Allotment activities of KBUNL’s securities. of internal control systems of a nature and
E. Investment and Loan Sub- Committee reporting the matter to the Board;
F. Contracts Sub-Committee
103
A Maharatna Company
(xii) Consider and review the following with B. Nomination & Remuneration Committee
the management, internal Auditor and the The term of reference of Nomination & Remuneration
independent Auditor: Committee is in accordance with Section 178 of the
1. Significant findings during the year, Companies Act, 2013, which is as under:
including the status of previous audit (i) Shall identify who may be appointed in senior
recommendations; management in accordance with the criteria laid
2. Any difficulties encountered during audit down, recommend to the board their appointment
work including any restrictions on the and removal;
Scope of the activities or access to required (ii) Shall formulate the criteria for determining
information. qualifications, positive attributes & recommend to the
(xiii) Review of all financial reports including board a policy relating to the remuneration for KMP &
Annexure to Cost Audit; Reports, Internal Audit other employees;
reports etc;
(iii) Shall while formulating the policy, NRC ensure that:
(xiv) Review of Management Discussion and Analysis
report; 1. Relationship of remuneration to performance
(xv) Review of half-yearly and annual financial is clear & meets appropriate performance
statements before submission to the Board for benchmarks; and
approval, with particular reference to: 2. Remuneration to KMP and senior management
1. Change, if any, in accounting policies and involves a balance between fixed & incentive
practices and reasons for the same; pay reflecting short & long-term performance
2. Significant adjustments made in financial objectives appropriate to the working of the
statements arising out of audit findings; company & its goals.
3. Disclosure of any related party transactions; The constitution of the Nomination and Remuneration
4. Qualifications in audit report. Committee of the Company as on 31.03.2017 was as under:
(xvi) Review of observations of Statutory Auditors i. Shri P. Amrit or in his absence Shri R. Lakshmanan,
and Comptroller and Auditor General of India Directors
and ii. Shri K.S. Garbyal or in his absence Shri A.K. Gupta,
(xvii) Such matters as may be referred to it by the Directors
Board of Directors, from time to time. iii. Smt. Sangeeta Bhatia, Director
The constitution of the Audit Committee of the Company as During the 2016-17, 1 (one) meeting of the Nomination and
on 31.03.2017, comprised 5 (five) Members namely Shri A.K. Remuneration Committee was held on 21.02.2017 in which
Gupta, Shri P. Amrit, Shri K.S. Garbyal, Smt. Sangeeta Bhatia all the Members were present.
and Shri R. Lakshmanan, Directors. C. Corporate Social Responsibility Committee
The Company Secretary acts as the Secretary to the The term of reference of Corporate Social Responsibility
Committee. Committee is in accordance with Section 135 of the
During the year, 3 (three) Meetings of the Committee were Companies Act, 2013 which is as under:
held on 06.05.2016, 28.07.2016 and 21.09.2016. The (i) To formulate & recommend to the Board, a CSR Policy
attendance of Directors in these Meetings is as under: which shall indicate the activities to be undertaken
Date of the Meeting/ 06.05.16 28.07.16 21.09.16 by the company as specified in Schedule VII to the
Name of the Member Companies Act, 2013 as amended from time to time
by the Ministry of Corporate Affairs, GOI;
Shri A.K. Gupta No Yes No
(ii) To recommend the amount of expenditure to be
Shri P. Amrit Yes No Yes incurred on the activities referred to in clause (a) and
Shri K.S. Garbyal Yes Yes Yes approve the budget for CSR;
Shri R. Lakshmanan Yes Yes No (iii) To monitor the CSR Policy of the company from time
Smt. Sangeeta Bhatia Yes Yes No to time;
(iv) Shall institute a transparent monitoring mechanism for
During the year, there is no instance, where the Board implementation of the CSR projects or programs or
had not accepted any recommendation(s) of the Audit activities undertaken by the company;
Committee.
(v) Any other matter as may be delegated by the Board
Your Company has ensured to remain in the regime of
from time to time.
unqualified statement.
104
A Maharatna Company
The constitution of the Corporate Social Responsibility 5. Performance Related Payment to Employees
Committee of the Company as on 31.03.2017 comprised As majority of the employees are on secondment basis
4 (four) Directors namely Shri K. S. Garbyal, Shri P. Amrit, from NTPC, their remuneration is as per the rules of
Smt. Sangeeta Bhatia, and Shri R. Lakshmanan, Directors. NTPC. Only a few employees are on the rolls of KBUNL
No meeting of the CSR Committee was held during which were earlier from Bihar State Electricity Board
FY 2016-17 and had opted to serve in KBUNL. They are also being
paid remuneration as per NTPC Rules.
D. Committee for Allotment and Post Allotment activities
Annual Performance Related Payment is decided by the
of KBUNL’s securities
Remuneration Committee of NTPC and such decision is
The Committee has been constituted for Allotment
applicable to the employees on secondment basis to
and Post-allotment activities of Company’s Securities. KBUNL and employees on the rolls of KBUNL.
The scope of work of this committee is to approve
6. General Body Meetings
allotment and transfer of shares.
The attendance of Directors in Annual General Meeting
The constitution of the Allotment and Post Allotment
and Extra-Ordinary General Meeting is as under:
Committee of the Company as on 31.03.2017 was as
under: Date of the Meeting/ Name AGM EGM
i. Shri P. Amrit or Shri R. Lakshmanan, Directors of the Director
28.07.16 21.02.17
ii. Shri K.S. Garbyal or Shri A.K. Gupta or Smt.
Sangeeta Bhatia, Directors Shri K.K. Sharma, Chairman Yes Yes
During the 2016-17, 1 (one) meeting of the Committee Shri P. Amrit, Director No Yes
for Allotment and Post Allotment activities was held on
Shri A.K. Gupta, Director No No
12.04.2016 in which all the Members were present.
E. Investment and Loan Sub-Committee Shri K.S. Garbyal, Director Yes Yes
The term of reference of Investment and Loan sub- Smt. Sangeeta Bhatia, Yes Yes
committee of the Board is to approve deployment of Director
surplus with scheduled banks from time to time and
also to look into the loan proposals. Shri R. Lakshmanan, Director Yes Yes
The constitution of the Investment and Loan Sub- The Chairman of the Audit Committee was present in
Committee of the Company as on 31.03.2017 consisted the Annual General Meeting.
5 (five) members namely Shri K.S. Garbyal, Shri R. Forthcoming AGM: Date, Time and Venue
Lakshmanan, Smt. Sangeeta Bhatia, Directors and CEO
and CFO. The 11th Annual General Meeting of the Company (AGM) is
scheduled on Wednesday, 30th August, 2017 at 1:30 p.m.
No meeting of the Investment and Loan Sub-Committee
at the registered office of the Company situated at NTPC
was held during FY 2016-17.
Bhawan, Scope Complex, 7, Institutional Area, Lodhi Road,
F. Contracts Sub-Committee New Delhi-110003.
This Committee approves award of works or purchase
Location and Time of the Last Three AGMs
contracts or incurring commitments of value exceeding
the powers of CEO as per Delegation of Powers as The location, time and details of the special resolutions
amended from time to time but not exceeding ` 250 passed during last three AGMs are as follows:
crore.
Year 2013-14 2014-15 2015-16
The constitution of the Contracts Sub-Committee of the
Company as on 31.03.2017 consisted 6 (six) members AGM 8th 9th 10th
namely Shri A.K. Gupta, Shri K.S. Garbyal, Shri R. Date and 09.07.2014 10.09.2015 28.07.2016
Lakshmanan, Smt. Sangeeta Bhatia, Directors and CEO Time 3.00 p.m. 4.00 p.m. 3:00 p.m.
and CFO.
No meeting of the Contracts Sub-Committee was held Venue NTPC Bhawan, NTPC NTPC Bhawan,
during FY 2016-17. SCOPE Complex, Bhawan, SCOPE
7, Institutional SCOPE Complex, 7,
4. Remuneration Policy / Detail of Remuneration to
Area, Lodhi Complex, 7, Institutional
Directors
Road, New Institutional Area, Lodhi
Since the Directors are nominated by NTPC or by Delhi-110003 Area, Lodhi Road, New
BSPGCL, they are governed by the remuneration policy Road, New Delhi-110003
as applicable to their parent company. Delhi-110003
105
A Maharatna Company
Year 2013-14 2014-15 2015-16 of NTPC Limited as they are nominated / deputed
by NTPC. The affirmation to the Code of Conduct is
Special (i) To increase - - given by Board Members and Senior Management
Resolution borrowing Personnel at NTPC.
Passed powers of the
e. The Company promotes ethical behaviour in all its
Board up to
business activities and has put in place a mechanism
` 3,500 Crore.
for reporting illegal or unethical behaviour. The
(ii) Authorise
Company has implemented Whistle Blower Policy
the Board to
(Vigil Mechanism) under which the employees
mortgage the
are free to report violations of applicable laws
assets of the
and regulations. No personnel have been denied
Company for
access to the Audit Committee.
securing loan.
f. During the year under review, no Presidential
7. Means of Communication Directive was received by your Company.
The Company communicates with its shareholders 9. The information regarding shareholding pattern of
through its Annual Report, and General Meetings. Promoters and Directors is given under Extract of
8. Disclosures Annual Return which is at Annex-III to the Directors’
Report.
a. The Annual Financial Statements FY 2016-17 are in
conformity with applicable Accounting Standards. 10. Training of Board Members
During the year, there have been no materially As the Board Members are the Nominees of NTPC and
significant Related Party Transactions that may have BSPGCL, they are being imparted training by the parent
potential conflict with the interest of the Company companies. However, detailed presentations were
at large. The details of “Related Party Disclosures” made by senior executives/professionals/ consultants
are being disclosed in Notes to the accounts in the on business-related issues at the Board/Committee
Annual Report. meetings as and when required.
b. The company has a system in place for monitoring 11. Location of Plant:
of various statutory and procedural compliances. Muzaffarpur Thermal Power Station, Muzaffarpur, Bihar
Further, a compliance certificate on applicable
laws is in place on yearly basis.
c. CEO and CFO of the Company, inter-alia, confirmed
the correctness of the financial statements, For and on behalf of the Board of Directors
adequacy of the internal control and certified
other matters to the Board and Audit Committee, (K.K. Sharma)
as per the requirements of Department of Public Place: New Delhi Chairman
Enterprises Guidelines. Dated: 30.08.2017 DIN: 03014947
d. All the Board Members and Senior Management
Personnel are governed by the Code of Conduct
106
A Maharatna Company
CHIEF EXECUTIVE OFFICER (CEO) & CHIEF FINANCIAL OFFICER (CFO) CERTIFICATION
We, Rajiva Kumar Sinha, Chief Executive Officer and Kundan Kumar Mishra, Chief Financial Officer of Kanti Bijlee Utpadan
Nigam Limited, to the best of our knowledge and belief, certify that:
(a) We have reviewed financial statements, including all notes to the financial statements and the cash flow statements for
the year ended March 31, 2017 and to the best of our knowledge and belief:
(i) these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
(ii) these statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
(b) To the best of our knowledge and belief, no transactions entered into by the Company during the year, which is
fraudulent, illegal or violative of the company’s various code(s) of conduct.
(c) We are responsible for establishing and maintaining internal controls for financial reporting and we have evaluated the
effectiveness of the internal control systems of the Company pertaining to financial reporting and have disclosed to the
auditors and the Audit Committee, deficiencies in the design or operation of internal controls, if any, of which we are
aware and the steps we have taken or propose to take to rectify these deficiencies.
(d) We have indicated to the company’s auditors and the Audit Committee of KBUNL’s Board of Directors:
(i) significant changes, if any, in internal control over financial reporting during the year;
(ii) significant changes, if any, in accounting policies during the year and the same have been disclosed in the notes
to the financial statements; and
(iii) instances of significant fraud of which we have become aware and the involvement therein, if any, of the
management or an employee having a significant role in the company’s internal control system over financial
reporting.
(Kundan Kumar Mishra) (Rajiva Kumar Sinha)

Chief Financial Officer Chief Executive Officer
Place: New Delhi
Date : May 18, 2017
107
A Maharatna Company
CERTIFICATE ON COMPLIANCE OF DPE GUIDELINES ON CORPORATE GOVERNANCE

FOR THE FINANCIAL YEAR 2016-2017
The Members,
We have examined the compliance of Guidelines on Corporate Governance for Central Public Sector Enterprise, 2010 as
issued by DPE from time to time of your Company.
The Compliance of Guidelines on Corporate Governance is the responsibility of the management. Our examination was
limited to the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the
Guidelines on Corporate Governance. It is neither an audit nor an expression of opinion on financial statements of the
Company.
In our opinion and to the best of our information and according to the explanations given to us by the management, we
certify that, except the Composition of the Board of Directors & it’s committees, the Company has complied with the DPE
Guidelines on Corporate Governance.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or

CS Sachin Agarwal
Partner
Place: New Delhi FCS No. : 5774
Date: August 04, 2017 CP No. : 5910
108
A Maharatna Company
Annexure- III to the Directors’ Report of KBUNIL
FORM NO. MGT-9

i) CIN : U40102DL2006GOI153167
ii) Registration Date : September 6, 2006
iii) Name of the Company : Kanti Bijlee Utpadan Nigam Limited
iv) Category / Sub-Category of the Company : Public Company / Government Company
v) Address of the Registered office and contact details : NTPC Bhawan, Core 7, SCOPE Complex, 7,
Institutional Area, Lodhi Road, New Delhi-110003
Ph. No.: 011-2436 0071
Fax No.: 011-24360241
E-mail: ruchimittal@ntpc.co.in
vi) Whether listed company Yes / No : No
vii) Name, Address and Contact details of Registrar and Transfer : Not Applicable
Agent, if any
All the business activities contributing 10% or more of the total turnover of the company shall be stated:-
Sl. Name and Description of main products/ NIC code of the Product/ % to total turnover of the
No. Services service Company
1. Electricity Power Generation by coal based 35102 100%
power plant
Sl. Name and address of the Company CIN/GLN Holding/ % of shares Applicable
No. Subsidiary/ held Section
Associate
1. NTPC Limited L40101DL1975GOI007966 Holding 65% 2 (46) of the
NTPC Bhawan, Core 7, SCOPE Complex, Companies
7, Institutional Area, Lodhi Road, New Act, 2013
Delhi-110003
Category of No. of Shares held at the beginning of the year No. of shares held at the end of the year % Change
Shareholders Demat Physical Total % of Demat Physical Total % of during the
Total Total year
shares shares
A. Promoters
(1) Indian
a) Individual
(i) As Nominee of NTPC - 300 300 0.00 - 300 300 0.00 -
(ii) As Nominee - 300 300 0.00 - 300 300 0.00 -
of Bihar State
Power Generation
Company Limited
b) Central Govt. - - - - - - - - -
c) State Govt.(s) - - - - - - - - -
d) Bodies Corp.
NTPC Limited - 68,99,79,692 68,99,79,692 65% - 72,94,57,676 72,94,57,676 65% -
Bihar State Power - 37,15,27,388 37,15,27,388 35% - 39,27,84,764 39,27,84,764 35% -
Generation Company
Limited
109
A Maharatna Company
Category of No. of Shares held at the beginning of the year No. of shares held at the end of the year % Change
Shareholders Demat Physical Total % of Demat Physical Total % of during the
Total Total year
shares shares
e) Banks/FI - - - - - - - - -
f) Any Other - - - - - - - - -
Sub-total (A) (1):- - 1,06,15,07,680 1,06,15,07,680 100% - 1,12,22,43,040 1,12,22,43,040 100% -
(2) Foreign
a) NRIs- individuals - - - - - - - - -
b) Other-Individuals - - - - - - - - -
c) Bodies Corp. - - - - - - - - -
d) Banks / FI - - - - - - - - -
e) Any Other - - - - - - - - -
Sub-total (A)(2):- - - - - - - - - -
Total shareholding of - 1,06,15,07,680 1,06,15,07,680 100% - 1,12,22,43,040 1,12,22,43,040 100% -
Promoter
(A) = (A)(1) + (A)(2)
1. Institutions
a) Mutual Funds - - - - - - - - -
b) Banks/FI - - - - - - - - -
c) Central Govt. - - - - - - - - -
d) State Govt.(s) - - - - - - - - -
Funds
f) Insurance - - - - - - - - -
Companies
g) FIIs - - - - - - - - -
h) Foreign Venture - - - - - - - - -
Capital Funds
i) Others (specify) - - - - - - - - -
Sub-total (B) (1):- - - - - - - - - -
2. Non-institutions
a) Bodies Corp.
i) Indian - - - - - - - - -
ii) Overseas - - - - - - - - -
b) Individuals
i) Individual - - - - - - - - -
Shareholders
holding nominal
share capital upto
` 1 lakh
ii) Individual - - - - - - - - -
shareholders
holding nominal
share capital in
excess of ` 1 lakh
c) Others(specify) - - - - - - - - -
Sub-total (B) (2):- - - - - - - - - -
Total Public - - - - - - - - -
Shareholding (B)=(B)
(1)+(B)(2)
C. Shares held by - - - - - - - - -
Custodian for GDRs
& ADRs
Grand Total - 1,06,15,07,680 1,06,15,07,680 100% - 1,12,22,43,040 1,12,22,43,040 100% -
(A+B+C)
110
A Maharatna Company
Sl. Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year % change in the
No. shareholding
No. of Shares % of total % of Shares No. of shares % of total % of Shares
during the year
Shares Pledged / Shares of the Pledged /
of the encumbered company encumbered
company to total to total
shares shares
1. NTPC Limited 68,99,79,692 65% - 72,94,57,676 65% - -
2. Bihar State Power 37,15,27,388 35% - 39,27,84,764 35% - -
Generation Company
Limited
3. Nominees of NTPC 300 0.00 - 300 0.00 - -
4. Nominees of 300 0.00 - 300 0.00 - -
Bihar State Power
Generation Company
Limited
SI. Particulars Shareholding at the beginning of the Cumulative shareholding during the year
No. year
No. of shares % of total shares No. of shares % of total shares
of the company of the company
At the beginning of the year 1,06,15,07,680 100% 1,06,15,07,680 100%
Date wise Increase / Decrease in Promoters - - - -
reasons for increase / decrease (e.g. allotment
/ transfer / bonus / sweat equity etc. ) :
Allotment made on 12.04.2016 4,77,35,360 100% 1,10,92,43,040 100 %
Allotment made on 21.09.2016 1,30,00,000 100% 1,12,22,43,040 100%
At the End of the year 1,12,22,43,040 100% 1,12,22,43,040 100%
SI. Shareholding at the Cumulative

No. beginning of the year Shareholding during
the year
For each of Top 10 shareholders No. of % of total No. of % of total
shares shares shares shares of the
of the company
company
Date wise Increase / Decrease in Shareholding during the year - - - -
specifying the reasons for increase / decrease (e.g. allotment /
transfer / bonus / sweat equity etc.) :
At the end of the year (or on the date of separation, if - - - -
separated during the year)
111
A Maharatna Company
SI. For each of the Directors and KMP Shareholding at the Cumulative Shareholding
No. beginning of the year during the year
No. of % of total No. of % of total
shares shares shares shares
of the of the
company company
1. Shri K.K. Sharma
Chairman & Nominee of NTPC
At the beginning of the year 100 0.00 100 0.00
Date wise increase / decrease in Shareholding during the year Nil 0.00 Nil 0.00
transfer/ bonus /sweat equity etc):
At the End of the year 100 0.00 100 0.00
2. Shri P. Amrit
Director & Nominee of BSPGCL
3. Shri K.S. Garbyal
Director & Nominee of NTPC
4. Shri R. Lakshmanan
Director & Nominee of BSPGCL
At the beginning of the year Nil 0.00 Nil 0.00
Date wise increase / decrease in Shareholding during the year 200 0.00 200 0.00
transfer/ bonus /sweat equity etc): Transfer from Shri Manish
Kumar Verma to Shri R. Lakshmanan on 25.04.2016
5. Ms. Sangeeta Bhatia
112
A Maharatna Company
V. INDEBTEDNESS
(Amount in ` Lakh)
Particulars Secured Loans Unsecured Loans Deposits Total

excluding deposits Indebtedness
Indebtedness at the beginning of the financial
year
i) Principal Amount 22,20,11,89,025.00 1,71,42,854.00 - -
Total (i + ii + iii) 22,20,11,89,025.00 1,71,42,854.00 - -
• Addition 86,75,81,761.00 121,00,00,000.00 - -
• Reduction - 1,71,42,854.00 - -
Net Change 86,75,81,761.00 1,19,28,57,146.00 - -
Indebtedness at the end of the financial year
i) Principal amount 23,06,87,70,786.00 121,00,00,000.00 - -
Total (i+ii+iii) 23,06,87,70,786.00 121,00,00,000.00 - -
A. Remuneration to Managing Director, Whole-time Directors and/or Manager: No such position is there
Sl. Particulars of Remuneration Name of MD/WTD/Manager Total

No. Amount
(a) Salary as per provisions contained in section 17(1) of the
Income-tax Act,1961
(b) Value of perquisites u/s 17(2) of Income-tax Act, 1961
(c) Profits in lieu of salary under section 17(3) of Income-tax
Act, 1961
- as % of profit
- others, specify…
Total (A) - - - - -
113
A Maharatna Company

No. Amount
• Fee for attending board / committee meetings
• Commission
Total (1) - - - - -
• Fee for attending board committee meetings
• Commission
Total (2) - - - - -
Total (B) = (1 + 2) - - - - -
SI. Particulars of Remuneration Key Managerial Personnel

No.
Remuneration details of CEO, PVUN CEO CFO* (Shri CFO** (Shri Company Total
A.K. Singh) K. K. Mishra) Secretary
1. Gross Salary
(a) Salary as per provisions contained 30,77,071 38,64,471 3,43,972 11,55,461 84,40,975.00
in section 17(1) of the Income-tax
Act,1961
(b) Value of perquisites u/s 17(2) of 58,478 3,21,966 38,331 62,837 4,81,612.00
(c) Profits in lieu of salary under section - - - -
17(3) of Income-tax Act, 1961
4. Commission - as % of profit - - - -
5. Others, please specify - - - -
Rent towards accommodation, medical
expenses etc.
Total 31,35,549 41,86,437 3,82,303 12,18,298 89,22,587.00
* Ceased to be Chief Financial Officer w.e.f. 21.01.2017
**Appointed as Chief Financial Officer w.e.f. 21.02.2017
#CS is posted at Delhi. Accordingly, salary is also being debited at NTPC CC.
114
A Maharatna Company
Type Section of the Brief description Details of Penalty Authority (RD / Appeal made, if
Companies Act / Punishment / NCLT / COURT) any (give details)
Compounding
fees imposed
A. COMPANY
Penalty - - - - -
B. DIRECTORS
Penalty - - - - -
Penalty - - - - -
(K.K. Sharma)
CHAIRMAN
Din: 03014947
Place: New Delhi
Date: 30.08.2017
115
A Maharatna Company
Annexure- IV to the Directors’ Report of KBUNIL
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES

1. A brief outline of the company’s CSR policy, including overview of projects or programs proposed to be undertaken
and a reference to the web-link to the CSR policy and projects or programs.
Keeping in view the size of the Company and manpower required for executing the CSR activities, your Company has
adopted the CSR policy of its holding company viz. NTPC Limited.
KBUNL has executed the CSR activities for long and having a formidable set-up for executing CSR activities. The CSR Policy
is formulated keeping in view the requirements of the Department of Public Enterprises and the Companies Act, 2013.
The CSR policy focused on Health, Sanitation, Drinking Water, Education, Capacity Building, Women Empowerment,
Social Infrastructure Development, support to Physically Challenged Person (PCPs), and activities contributing towards
Environment Sustainability and other subject matter described under Schedule VII of the Companies Act, 2013.
2. The CSR Committee as on 31.03.2017 comprised Shri K. S. Garbyal (Chairman), Shri P. Amrit, Smt. Sangeeta Bhatia and
Shri R. Lakshmanan, Directors.
3. Average net profit (loss) of the company for last three financial years.
The average net profit (loss) of the Company for three immediately preceding financial years i.e. 2013-14, 2014-15 and
2015-16 is ` (31.23 Crores)
4. Prescribed CSR Expenditure.
As per requirement of the Companies Act, 2013, the Company is required to spend 2% of the average net profit of
the company made during three immediately preceding financial years in CSR activities. As the average net profit (loss)
of the Company for three immediately preceding financial years was (` 31.23 Crore), the Company is not required to
spend on CSR activities in the FY 2016-17.
However, the Company had carried forward the unspent amount of ` 12.47 Lakh from the previous FY 15-16 which was
required to be spent on CSR activities in the FY 2016-17.
5. Details of CSR spent during the financial year 2016-17:
CSR budget for FY 15-16 – ` 20.23 Lakh
Amount spent in FY 15-16- ` 7.73 Lakh
Amount spent in FY 16-17- ` 1.62 Lakh
Total amount spent – ` 9.35 lakh
Balance amount – ` 10.88 lakh
(a) Total amount to be spent for the financial year 16-17 : ` 12.50 Lakh
(carried forward from FY 2015-16)
(b) Amount unspent, if any : ` 10.88 Lakh
(c) Manner in which the amount spent during the : Detailed below
financial year
(1) (2) (3) (4) (5) (6) (7) (8)

Sl. CSR project or activity Sector in Projects or Amount Amount spent Cumulative Amount
No. identified Which the Programs outlay on the expenditure spent:
Project is (1) Local area (budget) Projects or upto the Direct or
covered or other Project or programs reporting through
(2)Specify Programs Sub-heads: period implementing
the State and wise (1) Direct (Amount in agency
the district (Amount in expenditure Lakh)
where Lakh) on projects
projects or or programs-
undertaken (Amount in
Lakh)
1 Installation of Water Availabilities Muzaffrapur, 0.92 0.92 0.92 M/s Pawan
cooler at Govt. Public of safe Bihar Onida Arcade
Health Centre, Kanti drinking
water
2 Providing Multiseater Community Muzaffrapur, 0.70 0.70 0.70 M/s Godrej
Seating chair at Govt. welfare Bihar
Public Health Centre,
Kanti
Total 1.62 1.62 1.62
116
A Maharatna Company
- Proposal has been initiated for Construction of PCC Road. Award/delivery didn’t materialize during FY 2016-17.
Hence, the amount towards CSR couldn’t be spent fully. Unspent amount shall be utilized in FY 2017-18 as spill over for
CSR activity.
The implementation and monitoring of Corporate Social Responsibility Policy, is in compliance with CSR objectives and
policy of the Company.
(Rajiva Kumar Sinha) (K.K. Sharma)

Chief Executive Officer CHAIRMAN
DIN: 03014947
Place: New Delhi
Date: 30.08.2017
117
A Maharatna Company
Annexure- V to the Directors’ Report of KBUNIL

{Pursuant to Section 204(1) of the Companies Act, 2013 and
Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014}
To,
The Members,
KANTI BIJLEE UTPADAN NIGAM LIMITED.
We have conducted the Secretarial Audit of the Compliance of applicable statutory provisions and the adherence to good
Corporate Practices by Kanti Bijlee Utpadan Nigam Limited (hereinafter called KBUNL/the Company). Secretarial Audit was
conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances
and expressing our opinion thereon.
Based on our verification of KBUNL’s books, papers, Minute books, forms and returns filed and other records maintained by
the Company and also the information provided by the Company, its officers, agents and authorized representatives during
the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the audit period covering
the financial period ended on 31st March, 2017 complied with the statutory provisions listed hereunder and also that the
Company has proper Board processes and Compliance mechanism in place to the extent, in the manner and subject to the
reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by KBUNL (“the
Company”) for the financial year ended on 31st March, 2017 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder; Not Applicable
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder; Not Applicable
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign
Direct Investment, Overseas Direct Investment and External Commercial Borrowings; Not Applicable
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992
(‘SEBI Act’):-
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulation, 2011;
Not Applicable
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; Not Applicable
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
Not Applicable
(d) The SEBI (Share Based Employee Benefits) Regulations, 2014; Not Applicable
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; Not Applicable
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealing with client; Not Applicable
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; Not Applicable and
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; Not Applicable
(vi) Compliances / processes / systems under other applicable Laws to the Company are being verified on the basis of
periodic certificate submitted to the Board of Directors of the Company.
I have also examined compliance with the applicable clauses of the following:
(a) Secretarial Standards issued by the Institute of Company Secretaries of India.
(b) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Not Applicable
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above subject to the following observations:
1. Compliance under Section 149(4) read with Rule 4 of Companies (Appointment and Qualification of Directors) Rules,
2014 of the Act and Clause 3.1.4 of the DPE Guidelines on Corporate Governance with respect to the appointment of
Independent Directors on the Board of Company & consequential non-compliances thereof. Compliance under Section
149 (8) read with Clause VIII of Schedule IV of the Act with respect to performance evaluation of the Directors.
We further report that the Board of Directors of the Company is not duly constituted due to non-appointment of Independent
Directors on the Board of the Company. The changes in the composition of the Board of Directors that took place during
118
A Maharatna Company
the period under review were carried out in compliance with the provisions of the Act.
Generally, adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda
were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications
on the agenda items before the meeting and for meaningful participation at the meeting.
All the decisions made in the Board/Committee meeting(s) were carried out with unanimous consent of all the Directors/
Members present during the meeting.
Due to non-receipt of matching subscription amount towards Equity Capital from Bihar State Power Generation Company
Limited (one of the Promoters & Shareholder of the Company), the Company has either allotted equity shares beyond
statutory period or has not allotted equity shares, so as to maintain equity capital ratio amongst the Promoters as per the
Articles of Association.
We further report that there are adequate systems and processes in the Company commensurate with the size and
operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report that during the audit period, there were no specific events/actions having a major bearing on the
Company’s affairs in pursuance of the above referred laws.
Sachin Agarwal
Partner
Date: June 02, 2017 CP No. : 5910
report.
“Annexure A”
To,
The Members,
Sachin Agarwal
Partner
Date: June 02, 2017 CP No. : 5910
119
A Maharatna Company
KANTI BIJLEE UTPADAN NIGAM LTD

BALANCE SHEET AS AT 31st MARCH 2017
` Lakh
Particulars Note No. As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
ASSETS
Non-current assets
Property Plant & Equipment 2 266,922.91 67,783.28 67,300.74
Capital work-in-progress 3 167,921.04 322,823.79 276,566.93
Current assets
Inventory 5 3,482.69 4,023.98 2,818.18
Financial Assets
Trade Receivables 6 11,941.17 15,435.76 11,045.93
Cash and cash equivalent 7 1,426.94 1,835.12 5,840.28
Other current financial assets 8 2,655.63 3,125.39 5,526.87
Other current assets 9 2,718.94 1,357.47 5,565.33
Total current assets 22,225.37 25,777.72 30,796.58
TOTAL ASSETS 466,036.44 424,768.59 382,786.94
Equity
Other equity 11 16,153.05 (220.48) 825.48
Total equity 128,377.36 105,930.28 100,825.48
Liabilities
Borrowings 12 234,970.71 222,097.61 189,605.29
Deferred tax liabilities (net) 14 - - 1,751.71
Total non-current liabilities 242,048.21 227,005.55 196,268.44
Current liabilities
Borrowing 15 11,898.13 18,776.82 14,851.36
Trade payables 16 8,470.71 8,788.89 4,633.41
Other current liabilities 18 2,298.34 1,308.71 1,552.23
Provisions 19 1,801.49 1,887.24 1,948.49
Current tax liabilities (net) 20 - - 926.69
Deferred Revenue 21 28,570.35 32,582.35 36,594.34
(Ruchi Aggarwal) (K.K. Mishra) (R. K.Sinha) (R. Lakshmanan) (K.K.Sharma)

Place: Patna
Date: 18th May 2017
For Goel Mintri & Associates
Sunil Kumar Gupta
Partner
Membership No. : 501430
Place: New Delhi
Date: 19th May 2017
120
A Maharatna Company

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2017
` Lakh
31.03.2017 31.03.2016
Revenue
Revenue from operations 22 38,825.22 37,552.20
Other income 23 2,805.02 210.34
Total revenue 41,630.24 37,762.54
Expenses
Fuel 29,030.33 31,426.74
Employee benefits expense 24 3,034.67 2,503.54
Finance costs 25 1,911.20 1,763.83
Depreciation, amortization and impairment expense 2 6,027.01 5,155.06
Other expenses 26 3,820.23 4,485.73
Total expenses 43,823.44 45,334.90
Profit before tax and Rate Regulated Activities (RRA) (2,193.21) (7,572.37)
Add: Movements in regulatory deferral account balances - -
Profit before tax (2,193.21) (7,572.37)
Tax expense
Current year - -
Current tax - (1,751.71)
Deferred tax - (1,751.71)
Profit for the year (2,193.21) (5,820.66)
Other comprehensive income - -
Total comprehensive income (2,193.21) (5,820.66)

Expenditure during construction period (net) 27
Earnings per equity share (Par value ` 10/- each) 32
From operations including regulatory deferral account balances
Basic Earning Per Share (`) (0.20) (0.57)
Diluted Earning Per Share (`) (0.18) (0.55)


Place: Patna
Date: 18th May 2017
Sunil Kumar Gupta
Partner
Place: New Delhi
Date: 19th May 2017
121
A Maharatna Company

` Lakh
31.03.2017 31.03.2016
Net Loss as per Statement of Profit & Loss (2,193.21) (7,572.37)
Adjustment for
Depreciation/ Amortisation 6,027.01 5,155.06
Interest Cost 1,911.20 1,763.83
Grants adjusted as income (4,012.00) (4,012.00)
CSR Expense (1.62) -
Operating loss before working capital changes 1,731.38 (4,665.47)
Adjustment for -
Inventory 541.29 (1,205.80)
Trade receivable 3,494.59 (4,389.83)
Other Current financial assets 469.75 2,401.48
Other current assets (1,361.47) 4,207.86
Trade payables (318.18) 4,155.48
Other financial liabilities 1,847.75 1,174.01
Other current liabilities 989.63 (243.53)
Provisions (85.76) (61.25)
Cash generated from operations 7,308.99 1,372.96
Income Taxes paid 28.79 1,132.24
Net cash outflow from operating activities [A] 7,280.20 240.72
B. CASH FLOW FROM INVESTMENT ACTIVITIES
Purchase of fixed assets & CWIP (44,144.79) (49,825.28)
Net cash outflow from investing activities [B] (44,144.79) (49,825.28)
Proceeds from issue of share 6,073.54 6,150.77
Proceeds from share Application Money 18,568.37 4,774.70
Proceeds from Non-Current borrowings 20,604.39 32,492.32
Proceeds from Current borrowings (6,878.69) 3,925.46
Interest paid (1,911.20) (1,763.83)
Net cash inflow from financing activities [C] 36,456.40 45,579.41
Net increase/(decrease) in cash and cash equivalents [A+B+C] (408.19) (4,005.15)
Cash and Cash equivalents at the beginning of the year 1,835.12 5,840.28
Cash and Cash equivalents at the end of the year 1,426.94 1,835.12
Note: Previous year’s figures have been regrouped/rearranged wherever necessary.
Place: Patna
Date: 18th May 2017
Sunil Kumar Gupta
Partner
Place: New Delhi
Date: 19th May 2017
122
A Maharatna Company

(A) Equity share capital
` Lakhs
Balance as at 1 April 2016 Changes in equity Balance as at
share capital during 31 March 2017
the year
106,150.77 6,073.54 112,224.30
` Lakhs
Balance as at 1 April 2016 Changes in equity Balance as at
share capital during 31 March 2016
the year
100,000.00 6,150.77 106,150.77
(B) Other equity
` Lakhs
Retained Corporate Share
Earnings Social Application
Responsibility Money Pending
Reserve Allotment
Balance as at 1 April 2016 (5,007.68) 12.50 4,774.70 (220.48)
Profit for the year (2,193.21) - - (2,193.21)
Less: CSR Expenses - 1.62 - 1.62
Share Application Money received - - 24,641.90 24,641.90
Less: Shares alloted against share application - - 6,073.54 6,073.54
money
Balance as at 31 March 2017 (7,200.89) 10.87 23,343.07 16,153.05
` Lakhs
Retained Corporate Share
Earnings Social Application
Responsibility Money Pending
Reserve Allotment
Balance as at 1 April 2015 825.48 - - 825.48
Profit for the year (5,820.66) - - (5,820.66)
Less: Transfer to CSR reserve 12.50 - - 12.50
Add: Transfer from surplus - 12.50 - 12.50
Share Application Money received - - 10,925.47 10,925.47
Less: Shares alloted against share application - - 6,150.77 6,150.77
money
Balance as at 31 March 2016 (5,007.68) 12.50 4,774.70 (220.48)
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A Maharatna Company
Significant Accounting Policies for FY 2016-17 as at 1 April 2015. This is the effect of the
1. Company Information and Significant Accounting general rule of Ind AS 101 which is to apply
Policies Ind AS retrospectively.
A. Reporting entity An explanation of how the transition to Ind AS
has affected the reported financial position,
Kanti Bijlee Utpadan Nigam Limited (the “Company”)
financial performance and cash flows of the
is a Company domiciled in India and limited by
Company is provided in note 28.
shares (CIN: U40102DL2006GOI153167). The
address of the Company’s registered office is NTPC These financial statements were authorized
Bhawan, SCOPE Complex, 7 Institutional Area, for issue by Board of Directors on 18 May
Lodi Road, New Delhi - 110003. The Company is 2017.
involved in the generation and sale of bulk power 2. Basis of measurement
to State Power Utilities. The financial statements have been prepared
B. Basis of preparation on the historical cost basis.
1. Statement of Compliance 3. Functional and presentation currency
These financial statements are prepared These financial statements are presented in
on accrual basis of accounting and comply Indian Rupees (INR), which is the Company’s
with the Indian Accounting Standards (Ind functional currency.
AS) notified under the Companies (Indian C. Significant accounting policies
Accounting Standards) Rules, 2015 and A summary of the significant accounting policies
subsequent amendments thereto, the applied in the preparation of the financial
Companies Act, 2013 (to the extent notified statements are as given below. These accounting
and applicable), applicable provisions of policies have been applied consistently to all
the Companies Act, 1956, and the provisions periods presented in the financial statements.
of the Electricity Act, 2003 to the extent
The Company has elected to utilize the option
applicable. These are the Company’s first Ind
under Ind AS 101 by not applying the provisions
AS compliant financial statements and Ind AS
of Ind AS 16 and Ind AS 38 retrospectively and
101 ‘First Time Adoption of Indian Accounting
continue to use the Indian GAAP carrying amount
Standards’ has been applied.
as a deemed cost under Ind AS at the date of
For all the periods upto and including 31 transition to Ind AS. Therefore, the carrying amount
March 2016, the Company prepared its of property, plant and equipment and intangible
financial statements in accordance with assets at 1 April 2015, the Company’s date of
Generally Accepted Accounting Principles transition to Ind AS, according to the Indian GAAP
(GAAP) in India, accounting standards were maintained in transition to Ind AS.
specified under Section 133 of the Companies
Act, 2013, the Companies Act, 2013 (to the
extent notified and applicable), applicable 1.1. Initial recognition and measurement
provisions of the Companies Act, 1956, and Items of property, plant and equipment
the provisions of the Electricity Act, 2003 to are measured at cost less accumulated
the extent applicable. The Company followed depreciation/ amortization and
the provisions of Ind AS 101 in preparing its accumulated impairment losses. Cost
opening Ind AS Balance Sheet as of the date includes expenditure that is directly
of transition, viz. 1 April 2015. Certain of the attributable to bringing the asset to the
Company’s Ind AS accounting policies used in location and condition necessary for its
the opening Balance Sheet differed from its intended use.
Indian GAAP policies applied as at 31 March When parts of an item of property, plant
2015, and accordingly the adjustments were and equipment have different useful lives,
made to restate the opening balances as per they are recognized separately.
Ind AS. The resulting adjustments arose from Deposits, payments/liabilities made
events and transactions before the date of provisionally towards compensation,
transition to Ind AS. Therefore, as required rehabilitation and other expenses
by Ind AS 101, those adjustments were relatable to land in possession are treated
recognized directly through retained earnings as cost of land.
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A Maharatna Company
In the case of assets put to use, where disposal of an item of property, plant and
final settlement of bills with contractors is equipment are determined by comparing
yet to be effected, capitalization is done the proceeds from disposal with the
on provisional basis subject to necessary carrying amount of property, plant and
adjustment in the year of final settlement. equipment, and are recognized in the
Assets and systems common to more statement of profit and loss.
than one generating unit are capitalized 2. Capital work-in-progress
on the basis of engineering estimates/ The cost of self-constructed assets includes the cost
assessments. of materials & direct labour, any other costs directly
Expenditure on major inspection attributable to bringing the assets to a working
and overhauls of production plant is condition and location for their intended use, and the
capitalized, when it meets the asset initial estimate of dismantling and removing the items
recognition criteria. and restoring the site on which they are located and
Items of spare parts, stand-by equipment borrowing costs.
and servicing equipment which meet Expenses directly attributable to construction of
the definition of property, plant and property, plant and equipment incurred till they
equipment are capitalized. Other spare are ready for their intended use are identified and
parts are carried as inventory and allocated on a systematic basis on the cost of related
recognized in the statement of profit and assets.
loss on consumption. Deposit works/cost plus contracts are accounted for
1.2. Subsequent costs on the basis of statements of account received from
Subsequent expenditure is recognized the contractors.
as an increase in the carrying amount of Unsettled liabilities for price variation/exchange rate
the asset when it is probable that future variation in case of contracts are accounted for on
economic benefits deriving from the cost estimated basis as per terms of the contracts.
incurred will flow to the enterprise and 3. Intangible assets
the cost of the item can be measured
3.1. Initial recognition and measurement
reliably.
Intangible assets acquired by the Company, which
The cost of replacing part of an item
have finite useful lives, are measured at cost less
of property, plant and equipment is
accumulated amortization and accumulated
recognized in the carrying amount of
impairment losses. Cost includes any directly
the item if it is probable that the future
attributable incidental expenses necessary to
economic benefits embodied within
make the assets ready for its intended use.
the part will flow to the Company and
its cost can be measured reliably. The 3.2. Subsequent costs
carrying amount of the replaced part Subsequent expenditure is capitalized only when it
is derecognized. The costs of the day- increases the future economic benefits embodied
to-day servicing of property, plant and in the specific asset to which it relates. All other
equipment are recognized in profit or expenditures are recognized in profit or loss as
loss as incurred. incurred.
1.3. Decommissioning costs 3.3. Derecognition
The present value of the expected cost An intangible asset is derecognized when no future
for the decommissioning of the asset economic benefits are expected from their use or
after its use is included in the cost of the upon their disposal. Gains and losses on disposal
respective asset if the recognition criteria of an item of intangible assets are determined
for a provision are met. by comparing the proceeds from disposal with
1.4. Derecognition the carrying amount of intangible assets and are
recognized in the statement of profit and loss.
derecognized when no future economic 4. Government Grants
benefits are expected from their use or Government grants are recognized initially as deferred
upon their disposal. Gains and losses on income when there is reasonable assurance that they
125
A Maharatna Company
will be received and the Company will comply with 7. Cash and cash equivalents
the conditions associated with the grant. Grants that Cash and cash equivalents in the balance sheet
compensate the Company for expenses incurred comprise cash at banks and on hand and short-term
are recognized over the period in which the related deposits with an original maturity of three months or
costs are incurred and are deducted from the related less, which are subject to an insignificant risk of changes
expenses. Grants that compensate the Company for in value.
the cost of an asset are recognized in profit or loss on a
8. Foreign currency transactions and translation
systematic basis over the useful life of the related asset.
5. Borrowing costs Transactions in foreign currencies are initially recorded
at the functional currency spot rates at the date the
Borrowing costs that are directly attributable to the
transaction first qualifies for recognition.
acquisition, construction or erection of qualifying
assets are capitalized as part of cost of such asset Monetary assets and liabilities denominated in foreign
until such time the assets are substantially ready for currencies are translated at the functional currency
their intended use. Qualifying assets are assets which spot rates of exchange at the reporting date. Exchange
take a substantial period of time to get ready for their differences arising on settlement or translation of
intended use or sale. monetary items are recognized in profit or loss in the
year in which it arises with the exception that exchange
When the Company borrows funds specifically for the
differences on long term monetary items related to
purpose of obtaining a qualifying asset, the borrowing
acquisition of fixed assets recognized upto 31 March
costs incurred are capitalized. When Company borrows
2016 are adjusted to carrying cost of fixed assets.
funds generally and uses them for the purpose of
obtaining a qualifying asset, the capitalization of the Non-monetary items denominated in foreign currency
borrowing costs is computed based on the weighted are reported at the exchange rate ruling at the date of
average cost of general borrowing that are outstanding transaction.
during the period and used for the acquisition, 9. Revenue
construction or erection of the qualifying asset. The Company’s operations in India are regulated
Capitalization of borrowing costs ceases when under the Electricity Act, 2003. Electricity Act has
substantially all the activities necessary to prepare the given powers to the CERC with an objective for making
qualifying assets for their intended uses are complete. regulations for tariff for the power plants. Revenue to
Borrowing costs consist of interest and other costs that be earned from the generation and sale of electricity is
an entity incurs in connection with the borrowing of regulated based on certain formulae and parameters
funds. Income earned on temporary investment of the set out in tariff regulations issued from time to time.
borrowings pending their expenditure on the qualifying Tariff is based on the cost incurred for a specific
assets is deducted from the borrowing costs eligible power plant and primarily comprises two components:
for capitalization. Borrowing costs include exchange capacity charge i.e. a fixed charge, that includes
differences arising from foreign currency borrowings depreciation, cost of capital, cost of working capital,
to the extent that they are regarded as an adjustment operating & maintenance expenses and energy charge
to interest costs. i.e. a variable charge primarily based on fuel costs.
Other borrowing costs are recognized as an expense in Revenue from sale of energy
the year in which they are incurred.
Revenue from the sale of energy is measured at the
6. Inventories fair value of the consideration received or receivable.
Inventories are valued at the lower of cost and net Revenue is recognized when the significant risks and
realizable value. Cost includes cost of purchase and rewards of ownership have been transferred to the
other costs incurred in bringing the inventories to their buyer, recovery of the consideration is probable, the
present location and condition. Cost is determined on associated costs can be estimated reliably, there is no
weighted average basis. Costs of purchased inventory continuing management involvement, and the amount
are determined after deducting rebates and discounts. of revenue can be measured reliably.
Net realizable value is the estimated selling price in the Revenue from sale of energy is accounted for based
ordinary course of business, less estimated costs of on tariff rates approved by the CERC as modified by
completion and the estimated costs necessary to make the orders of Appellate Tribunal for Electricity to the
the sale. extent applicable. In case of power stations where the
The diminution in the value of obsolete, unserviceable tariff rates are yet to be approved, provisional rates
and surplus stores & spares is ascertained on review are adopted considering the applicable CERC Tariff
and provided for.
126
A Maharatna Company
Regulations. Revenue from sale of energy is recognized a) Kutcha Roads 2 years

once the electricity has been delivered to the customer b) Enabling works
and is measured through a regular review of usage
- residential buildings 15 years
meters. Customers are billed on a periodic and regular
- internal electrification of residential 10 years
basis. As at each reporting date, revenue from sale
buildings
of energy includes an accrual for sales delivered to
customers but not yet billed i.e. unbilled revenue. - non-residential buildings including 5 years
their internal electrification, water
The incentives/disincentives are accounted for based
supply, sewerage & drainage
on the norms notified/approved by the CERC as per works, railway sidings, aerodromes,
principles enunciated in Ind AS 18. helipads and airstrips.
Rebates given to beneficiaries as early payment c) Personal computers & laptops 3 years
incentives are deducted from the amount of revenue. including peripherals
The interest/surcharge on late payment/overdue d) Photocopiers, fax machines, water 5 years
sundry debtors for sale of energy is recognized coolers and refrigerators
when no significant uncertainty as to measurability or e) Temporary erections including 1 year
collectability exists. wooden structures
Interest/surcharge recoverable on advances to f) Telephone exchange 15 years
suppliers as well as warranty claims wherever there is g) Wireless systems, VSAT equipments, 6 years
uncertainty of realization/acceptance are not treated display devices viz. projectors,
as accrued and are therefore, accounted for on screens, CCTV, audio video
receipt/acceptance. conferencing systems and other
10. Other Income communication equipments
Interest income is recognized, when no significant Assets costing up to ` 5,000/- are fully depreciated in
uncertainty as to measurability or collectability exists, the year of acquisition
on a time proportion basis taking into account the Cost of software recognized as intangible asset, is
amount outstanding and the applicable interest rate, amortized on straight line method over a period of
using the effective interest rate method (EIR). legal right to use or 3 years, whichever is less. Other
Scrap other than steel scrap is accounted for as and intangible assets are amortized on straight line method
when sold. over the period of legal right to use or life of the related
Insurance claims for loss of profit are accounted for plant, whichever is less.
in the year of acceptance. Other insurance claims are Depreciation on additions to/deductions from fixed
accounted for based on certainty of realization. assets during the year is charged on pro-rata basis
11. Depreciation/amortization from/up to the month in which the asset is available for
use/disposed.
Depreciation is recognized in profit or loss on a straight-
line basis over the estimated useful lives of each part Where the cost of depreciable assets has undergone
of an item of property, plant and equipment. Leased a change during the year due to increase/decrease in
assets are depreciated over the shorter of the lease long term liabilities on account of exchange fluctuation,
term and their useful lives unless it is reasonably certain price adjustment, change in duties or similar factors,
that the Company will obtain ownership by the end of the unamortized balance of such asset is charged off
the lease term. prospectively over the remaining useful life determined
following the applicable accounting policies relating to
Depreciation on the assets of the generation of
depreciation/ amortization.
electricity business is charged on straight line method
following the rates and methodology notified by the Where it is probable that future economic benefits
CERC Tariff Regulations in accordance with Schedule II of deriving from the cost incurred will flow to the
the Companies Act, 2013. enterprise and the cost of the item can be measured
reliably, subsequent expenditure on a PPE along with
Depreciation on the following assets is provided on
its unamortized depreciable amount is charged off
their estimated useful life ascertained on technical
prospectively over the revised useful life determined
evaluation:
by technical assessment.
Leasehold land and buildings relating to generation
of electricity business are fully amortized over lease
127
A Maharatna Company
period or life of the related plant whichever is lower of the aggregate of basic pay and dearness allowance
following the rates and methodology notified by the for the period of service rendered in the Company.
CERC Tariff Regulations. Leasehold land acquired on Accordingly, these employee benefits are treated as
perpetual lease is not amortized. defined contribution scheme.
Major overhaul and inspection costs which have been In respect of employees on deputation from BSPGCL-
capitalized are depreciated over the period until the Employee benefit include Earned leave and pension.
next outage which ranges from 2-8 years or actual The company is to make a fixed percentage contribution
major inspection/overhaul, whichever is earlier. of Pay band and Grade Pay thereon. Accordingly, these
12. Other Expenses employee benefits are treated as defined contribution
scheme.
Expenses on ex-gratia payments under voluntary
retirement scheme, training & recruitment and research In respect of employees on roll of the company -
& development are charged to revenue in the year Employee benefit expenditure like provident fund,
incurred. gratuity and other terminal benefits are provided on
actual basis.
Preliminary expenses on account of new projects
incurred prior to approval of feasibility report/techno 14. Leases
economic clearance are charged to revenue. As Lessee
Net pre-commissioning income/expenditure is adjusted Accounting for finance leases
directly in the cost of related assets and systems. Leases of property, plant and equipment where
Transit and handling losses of coal as per Company’s the Company, as lessee has substantially all risks and
norms are included in cost of coal. rewards of ownership are classified as finance lease.
Voluntary community development expenditure is On initial recognition, assets held under finance leases
charged to statement of profit & loss in the year are recorded as property, plant and equipment and
incurred. the related liability is recognized under borrowings.
At inception of the lease, finance leases are recorded
Liquidated damages, wherever there is uncertainty of
at amounts equal to the fair value of the leased asset
realization/acceptance are not treated as accrued and
or, if lower, the present value of the minimum lease
are therefore, accounted for on receipt/acceptance
payments. Minimum lease payments made under
and netted off from related expenses / project costs.
finance leases are apportioned between the finance
13. Employee benefits expense and the reduction of the outstanding liability.
Defined contribution plans The finance expense is allocated to each period during
A defined contribution plan is a post-employment the lease term so as to produce a constant periodic
benefit plan under which an entity pays fixed rate of interest on the remaining balance of the liability.
contributions into separate entities and will have no Accounting for operating leases
legal or constructive obligation to pay further amounts.
Leases in which a significant portion of the risks and
Obligations for contributions to defined contribution
rewards of ownership are not transferred to the
plans are recognized as an employee benefits expense
Company as lessee are classified as operating lease.
in profit or loss in the period during which services
Payments made under operating leases are recognized
are rendered by employees. Prepaid contributions
as an expense over the lease term. Lease incentives
are recognized as an asset to the extent that a cash
received are recognized as an integral part of the total
refund or a reduction in future payments is available.
lease expense, over the term of the lease.
Contributions to a defined contribution plan that are
due after more than 12 months after the end of the 15. Impairment of non-financial assets
period in which the employees render the service are The carrying amounts of the Company’s non-financial
discounted to their present value. assets are reviewed at each reporting date to determine
In respect of employees from Holding Company whether there is any indication of impairment
NTPC- Employee benefits include provident fund, considering the provisions of Ind AS 36 ‘Impairment
pension, gratuity, post-retirement medical facilities, of Assets’. If any such indication exists, then the asset’s
compensated absences, long service award, economic recoverable amount is estimated.
rehabilitation scheme & other terminal benefits. In terms The recoverable amount of an asset or cash-generating
of the arrangement with the Holding Company, the unit is the greater of its value in use and its fair value
company is to make a fixed percentage contribution less costs to sell. In assessing value in use, the estimated
128
A Maharatna Company
future cash flows are discounted to their present value Contingent liabilities are possible obligations that
using a pre-tax discount rate that reflects current market arise from past events and whose existence will only
assessments of the time value of money and the risks be confirmed by the occurrence or non-occurrence
specific to the asset. For the purpose of impairment of one or more future events not wholly within the
testing, assets that cannot be tested individually are control of the Company. Where it is not probable that
grouped together into the smallest group of assets an outflow of economic benefits will be required,
that generates cash inflows from continuing use that or the amount cannot be estimated reliably, the
are largely independent of the cash inflows of other obligation is disclosed as a contingent liability, unless
assets or groups of assets (the “cash-generating unit”, the probability of outflow of economic benefits is
or “CGU”). remote. Contingent liabilities are disclosed on the basis
An impairment loss is recognized if the carrying amount of judgment of the management/ independent experts.
of an asset or its CGU exceeds its estimated recoverable These are reviewed at each balance sheet date and are
amount. Impairment losses are recognized in profit or adjusted to reflect the current management estimate.
loss. Impairment losses recognized in respect of CGUs 17. Income tax
are reduced from the carrying amounts of the assets of Income tax expense comprises current and deferred
the CGU. tax. Current tax expense is recognized in profit or loss
Impairment losses recognized in prior periods are except to the extent that it relates to items recognized
assessed at each reporting date for any indications directly in other comprehensive income or equity, in
that the loss has decreased or no longer exists. An which case it is recognized in other comprehensive
impairment loss is reversed if there has been a change income or equity.
in the estimates used to determine the recoverable Current tax is the expected tax payable on the taxable
amount. An impairment loss is reversed only to the income for the year, using tax rates enacted or
extent that the asset’s carrying amount does not exceed substantively enacted at the reporting date, and any
the carrying amount that would have been determined, adjustment to tax payable in respect of previous years.
net of depreciation or amortization, if no impairment Current income taxes are recognized under ‘Income
loss had been recognized. tax payable’ net of payments on account, or under ‘Tax
16. Provisions and contingent liabilities receivables’ where there is a credit balance.
A provision is recognized if, as a result of a past event, Deferred tax is recognized using the balance sheet
the Company has a present legal or constructive method, providing for temporary differences between
obligation that can be estimated reliably, and it is the carrying amounts of assets and liabilities for financial
probable that an outflow of economic benefits will be reporting purposes and the amounts used for taxation
required to settle the obligation. If the effect of the time purposes. Deferred tax is measured at the tax rates that
value of money is material, provisions are determined are expected to be applied to temporary differences
by discounting the expected future cash flows at a when they reverse, based on the laws that have been
pre-tax rate that reflects current market assessments of enacted or substantively enacted by the reporting date.
the time value of money and the risks specific to the Deferred tax assets and liabilities are offset if there is a
liability. When discounting is used, the increase in the legally enforceable right to offset current tax liabilities
provision due to the passage of time is recognized as a and assets, and they relate to income taxes levied by
finance cost. the same tax authority on the same taxable entity, or on
The amount recognized as a provision is the best different tax entities, but they intend to settle current
estimate of the consideration required to settle the tax liabilities and assets on a net basis or their tax assets
present obligation at reporting date, taking into and liabilities will be realized simultaneously.
account the risks and uncertainties surrounding the Deferred tax is recognized in profit or loss except to
obligation. the extent that it relates to items recognized directly in
When some or all of the economic benefits required other comprehensive income or equity, in which case it
to settle a provision are expected to be recovered is recognized in other comprehensive income or equity.
from a third party, the receivable is recognized as an A deferred tax asset is recognized to the extent that it
asset if it is virtually certain that reimbursement will is probable that future taxable profits will be available
be received and the amount of the receivable can be against which the temporary difference can be utilized.
measured reliably. The expense relating to a provision Deferred tax assets are reviewed at each reporting
is presented in the statement of profit and loss net of date and are reduced to the extent that it is no longer
any reimbursement. probable that the related tax benefit will be realized.
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A Maharatna Company
18. Material prior period errors • There is no unconditional right to defer settlement
Material prior period errors are corrected of the liability for at least twelve months after the
retrospectively by restating the comparative amounts reporting period.
for the prior periods presented in which the error All other liabilities are classified as non-current.
occurred. If the error occurred before the earliest Deferred tax assets / liabilities are classified as non-
prior period presented, the opening balances of current.
assets, liabilities and equity for the earliest prior period
22. Financial instruments
presented, are restated.
A financial instrument is any contract that gives rise to
19. Earnings per Share
a financial asset of one entity and a financial liability or
Basic earnings per equity share is computed by dividing equity instrument of another entity.
the net profit attributable to equity shareholders of the
22.1.Financial assets
Company by the weighted average number of equity
shares outstanding during the financial year. Initial recognition and measurement
Diluted earnings per equity share is computed All financial assets are recognized initially at fair
by dividing the net profit attributable to equity value plus or minus, in the case of financial assets
shareholders of the Company by the weighted average not recorded at fair value through profit or loss,
number of equity shares considered for deriving transaction costs that are attributable to the
basic earnings per equity share and also the weighted acquisition or issue of the financial asset.
average number of equity shares that could have been Subsequent measurement
issued upon conversion of all dilutive potential equity Debt instruments at amortized cost
shares.
A ‘debt instrument’ is measured at the amortized
Basic and diluted earnings per equity share are also cost if both the following conditions are met:
computed using the earnings amounts excluding the
movements in regulatory deferral account balances. (a) The asset is held within a business model whose
objective is to hold assets for collecting contractual
20. Cash flow statement cash flows, and
Cash flow statement is prepared in accordance with (b) Contractual terms of the asset give rise on
the indirect method prescribed in Ind AS 7 ‘Statement specified dates to cash flows that are solely
of Cash Flows’. payments of principal and interest (SPPI) on the
21. Current and Non-current classification principal amount outstanding.
The Company presents assets and liabilities in the After initial measurement, such financial assets are
balance sheet based on current / non-current subsequently measured at amortized cost using
classification. the effective interest rate (EIR) method. Amortized
An asset is current when it is: cost is calculated by taking into account any
discount or premium on acquisition and fees or
• Expected to be realized or intended to sold or
costs that are an integral part of the EIR. The EIR
consumed in normal operating cycle;
amortization is included in finance income in the
• Held primarily for the purpose of trading; profit or loss. The losses arising from impairment
• Expected to be realized within twelve months are recognized in the profit or loss. This category
after the reporting period; or generally applies to trade and other receivables.
• Cash or cash equivalent unless restricted from Debt instrument at FVTOCI (Fair Value through
being exchanged or used to settle a liability for at OCI)
least twelve months after the reporting period. A ‘debt instrument’ is classified as at the FVTOCI if
All other assets are classified as non-current. both of the following criteria are met:
A liability is current when: (a) The objective of the business model is achieved
• It is expected to be settled in normal operating both by collecting contractual cash flows and
cycle; selling the financial assets, and
• It is held primarily for the purpose of trading; (b) The asset’s contractual cash flows represent
SPPI
• It is due to be settled within twelve months after
the reporting period; or Debt instruments included within the FVTOCI
category are measured initially as well as at each
130
A Maharatna Company
reporting date at fair value. Fair value movements are measured at amortized cost e.g., loans, debt
are recognized in the other comprehensive securities, deposits, trade receivables and bank
income (OCI). However, the Company recognizes balance.
interest income, impairment losses & reversals and (b) Trade receivables under Ind AS 18.
foreign exchange gain or loss in the profit and loss. For recognition of impairment loss on other financial
On derecognition of the asset, cumulative gain or assets and risk exposure, the Company determines
loss previously recognized in OCI is reclassified that whether there has been a significant increase
from the equity to profit and loss. Interest earned in the credit risk since initial recognition. If credit
whilst holding FVTOCI debt instrument is reported risk has not increased significantly, 12-month ECL
as interest income using the EIR method. is used to provide for impairment loss. However,
Debt instrument at FVTPL (Fair Value through Profit if credit risk has increased significantly, lifetime
or Loss) ECL is used. If, in a subsequent period, credit
FVTPL is a residual category for debt instruments. quality of the instrument improves such that there
Any debt instrument, which does not meet the is no longer a significant increase in credit risk
criteria for categorization as at amortized cost or since initial recognition, then the entity reverts to
as FVTOCI, is classified as at FVTPL. recognizing impairment loss allowance based on
12-month ECL.
In addition, the Company may elect to classify a
debt instrument, which otherwise meets amortized 22.2.Financial liabilities
cost or FVTOCI criteria, as at FVTPL. However, Initial recognition and measurement
such election is allowed only if doing so reduces All financial liabilities are recognised initially at fair
or eliminates a measurement or recognition value and, in the case of loans and borrowings and
inconsistency (referred to as ‘accounting payables, net of directly attributable transaction
mismatch’). Debt instruments included within the costs. The Company’s financial liabilities include
FVTPL category are measured at fair value with all loans and borrowings and amounts payable for
changes recognized in the profit and loss. capital expenditure.
Derecognition Subsequent measurement
A financial asset (or, where applicable, a part of Financial liabilities at amortized cost
a financial asset or part of a Company of similar
financial assets) is primarily derecognised (i.e. After initial measurement, such financial liabilities
removed from the Company’s balance sheet) are subsequently measured at amortized cost
when: using the effective interest rate (EIR) method.
Amortized cost is calculated by taking into account
• The rights to receive cash flows from the asset
any discount or premium on acquisition and fees
have expired, or
or costs that are an integral part of the EIR. The
• The Company has transferred its rights to EIR amortization is included in finance costs in the
receive cash flows from the asset or has profit or loss. This category generally applies to
assumed an obligation to pay the received trade payables and other contractual liabilities.
cash flows in full without material delay
Financial liabilities at fair value through profit or
to a third party under a ‘pass-through’
loss
arrangement and either (a) the Company
has transferred substantially all the risks and Financial liabilities at fair value through profit or
rewards of the asset, or (b) the Company has loss include financial liabilities held for trading
neither transferred nor retained substantially and financial liabilities designated upon initial
all the risks and rewards of the asset, but has recognition as at fair value through profit or loss.
transferred control of the asset. Financial liabilities are classified as held for trading
if they are incurred for the purpose of repurchasing
Impairment of financial assets
in the near term.
In accordance with Ind AS 109, the Company
Gains or losses on liabilities held for trading are
applies expected credit loss (ECL) model for
recognized in the profit or loss.
measurement and recognition of impairment loss
on the following financial assets and credit risk Financial liabilities designated upon initial
exposure: recognition at fair value through profit or loss are
(a) Financial assets that are debt instruments, and designated at the initial date of recognition, and
only if the criteria in Ind-AS 109 are satisfied. For
131
A Maharatna Company
liabilities designated as FVTPL, fair value gains/ In order to enhance understanding of the financial
losses attributable to changes in own credit risk statements, information about significant areas of
are recognized in OCI. These gains/loss are not estimation, uncertainty and critical judgments in
subsequently transferred to P&L. However, the applying accounting policies that have the most
Company may transfer the cumulative gain or loss significant effect on the amounts recognised in the
within equity. All other changes in fair value of financial statements is as under:
such liability are recognized in the statement of 1. Useful life of property, plant and equipment
profit or loss. The Company has not designated
The estimated useful life of property, plant
any financial liability as at fair value through profit
and equipment is based on a number of
and loss.
factors including the effects of obsolescence,
Borrowings demand, competition and other economic
After initial recognition, borrowings are factors (such as the stability of the industry
subsequently measured at amortized cost using and known technological advances) and the
the EIR method. Gains and losses are recognized in level of maintenance expenditures required
profit or loss when the liabilities are derecognized to obtain the expected future cash flows from
as well as through the EIR amortization process. the asset.
Amortized cost is calculated by taking into account Useful life of the assets of the generation of
any discount or premium on acquisition and fees electricity business is determined by the CERC
or costs that are an integral part of the EIR. The Tariff Regulations in accordance with Schedule
EIR amortization is included as finance costs in the II of the Companies Act, 2013.
statement of profit and loss.
The Company reviews at the end of each
Derecognition reporting date the useful life of property,
A financial liability is derecognized when the plant and equipment, other than the assets
obligation under the liability is discharged or of generation of electricity business which
cancelled or expires. When an existing financial are governed by CERC Regulations, and are
liability is replaced by another from the same adjusted prospectively, if appropriate.
lender on substantially different terms, or the terms 2. Recoverable amount of property, plant and
of an existing liability are substantially modified, equipment
such an exchange or modification is treated as
The recoverable amount of property, plant
the derecognition of the original liability and the
and equipment is based on estimates and
recognition of a new liability. The difference in the
assumptions regarding in particular the
respective carrying amounts is recognized in the
expected market outlook and future cash
statement of profit or loss.
flows associated with the power plants.
D. Use of estimates and management judgments Any changes in these assumptions may have
The preparation of financial statements requires a material impact on the measurement of
management to make judgments, estimates and the recoverable amount and could result in
assumptions that may impact the application of impairment.
accounting policies and the reported value of 3. Revenues
assets, liabilities, income, expenses and related
The Company records revenue from sale of
disclosures concerning the items involved as well
energy based on tariff rates approved by the
as contingent assets and liabilities at the balance
CERC as modified by the orders of Appellate
sheet date. The estimates and management’s
Tribunal for Electricity to the extent applicable,
judgments are based on previous experience and
as per principles enunciated under Ind AS
other factors considered reasonable and prudent
18. However, in cases where tariff rates are
in the circumstances. Actual results may differ from
yet to be approved, provisional rates are
these estimates.
adopted considering the applicable CERC
Estimates and underlying assumptions are reviewed Tariff Regulations.
on an ongoing basis. Revisions to accounting
4. Provisions and contingencies
estimates are recognised in the period in which
the estimates are revised and in any future periods The assessments undertaken in recognizing
affected. provisions and contingencies have been made
in accordance with Ind AS 37, ‘Provisions,
132
A Maharatna Company
Contingent Liabilities and Contingent under Ind AS 105 ‘Non-current Assets Held
Assets’. The evaluation of the likelihood of for Sale and Discontinued Operations’. In
the contingent events has required best assessing the applicability, management has
judgment by management regarding the exercised judgment to evaluate the availability
probability of exposure to potential loss. of the asset for immediate sale, management’s
Should circumstances change following commitment for the sale and probability
unforeseeable developments, this likelihood of sale within one year to conclude if their
could alter. carrying amount will be recovered principally
5. Assets held for sale through a sale transaction rather than through
continuing use.
Significant judgment is required to apply the
accounting of non-current assets held for sale
133
2. Property, plant & equipment
Tangible assets
134
A Maharatna Company

Land
(including development
expenses)
Freehold 17,132.25 - - 17,132.25 - - - - 17,132.25 17,132.25
Leasehold 0.00 6,968.21 - 6,968.21 0.00 18.39 - 18.39 6,949.82 0.00
Roads, bridges, 85.50 2,587.46 - 2,672.96 3.57 10.77 - 14.34 2,658.61 81.93
culverts & helipads
Building
Main Plant 561.15 16,980.57 - 17,541.73 64.72 111.98 - 176.70 17,365.02 496.43
Others 2,088.73 95.99 - 2,184.71 164.11 166.12 - 330.23 1,854.49 1,924.62
Temporary erection - 345.59 - 345.59 - 5.76 - 5.76 339.83 -
Water supply, 30.92 - - 30.92 1.07 1.07 - 2.14 28.78 29.85
drainage & sewerage
system

MGR track and 772.04 5,653.76 - 6,425.80 80.24 105.12 - 185.36 6,240.44 691.80
signalling system
Plant and Machinery 51,319.75 171,072.59 45.79 222,346.55 5,160.85 5,878.06 - 11,038.90 211,307.64 46,158.90
(including associated
civil works)
Furniture and fixtures 145.81 46.51 0.50 191.82 12.28 21.04 0.15 33.17 158.65 133.53
Vehicles (Owned) 1.34 - - 1.34 0.15 0.15 - 0.29 1.05 1.19
Office equipment 91.31 39.20 - 130.51 12.95 20.94 - 33.89 96.62 78.36
EDP, WP machines and 135.12 123.68 76.81 181.99 44.83 31.85 50.68 25.99 155.99 90.30
satcom equipment
Construction 453.67 - (2.46) 456.13 47.56 50.68 - 98.24 357.89 406.10
equipments
Electrical Installations 546.09 900.19 - 1,446.28 34.02 37.71 - 71.73 1,374.55 512.07
Communication 1.32 6.01 (0.27) 7.60 0.54 1.31 - 1.85 5.75 0.78
Equipments
Hospital Equipments 1.37 - - 1.37 0.12 0.07 - 0.18 1.18 1.25
Capital Spares 44.28 547.84 - 592.12 0.37 24.15 - 24.52 567.60 43.91
Capital Overhaul - 390.37 - 390.37 - 63.63 - 63.63 326.74 -
Total 73,410.65 205,757.96 120.37 279,048.24 5,627.37 6,548.79 50.84 12,125.33 266,922.91 67,783.218
Land :
expenses)
Freehold 12,172.30 693.93 (4,266.01) 17,132.25 - - - - 17,132.25 12,172.30
Leasehold 0.00 - - 0.00 - 0.00 - 0.00 0.00 0.00
Roads, bridges, 85.50 - - 85.50 - 3.57 - 3.57 81.93 85.50
culverts & helipads
Building :
Main plant 561.15 - - 561.15 - 64.72 - 64.72 496.43 561.15
Others 2,085.33 - (3.40) 2,088.73 - 164.11 - 164.11 1,924.62 2,085.33
Water Supply, drainage 30.92 - - 30.92 - 1.07 - 1.07 29.85 30.92
& sewerage system
MGR track and 772.04 - - 772.04 - 80.24 - 80.24 691.80 772.04
signalling system
Plant and machinery 50,568.95 16.74 (734.05) 51,319.75 - 5,160.85 - 5,160.85 46,158.90 50,568.95
(including associated
civil works)
Furniture and fixtures 124.74 21.11 0.04 145.81 - 12.32 0.04 12.28 133.53 124.74
Vehicles Owned 1.34 - - 1.34 - 0.15 - 0.15 1.19 1.34
Office equipment 51.80 39.93 0.41 91.31 - 13.18 0.23 12.95 78.36 51.80
EDP, WP machines and 48.37 89.66 2.90 135.12 - 46.57 1.74 44.83 90.30 48.37
satcom equip.
Construction 251.32 202.34 - 453.67 - 47.56 - 47.56 406.10 251.32
equipments
Electrical Installations 546.09 - - 546.09 - 34.02 - 34.02 512.07 546.09
Communication 0.81 0.51 - 1.32 - 0.54 - 0.54 0.78 0.81
Equipments
Hospital Equipments 0.07 1.30 - 1.37 - 0.12 - 0.12 1.25 0.07
Capital Spares - 44.28 - 44.28 - 0.37 - 0.37 43.91 -
Total 67,300.74 1,109.80 (5,000.11) 73,410.65 - 5,629.38 2.01 5,627.37 67,783.28 67,300.74
a) The conveyancing of the title of 22.81 acre (31 March 2016 36.62 acres; 01 April 2015: 46.85 acres) of freehold land in possesssion of the
company of value ` 1,162.93 Lakhs (31 March 2016:` 1,867.00 Lakhs; 01 April 2015: ` 1471.40 Lakhs), in favor of the Company are awaiting
completion of legal formalities.
b) Refer Note 12 for information on property, plant and equipment pledged as security by the company.
A Maharatna Company
135
A Maharatna Company
c) The Company capitalised the borrowing costs in the capital work-in-progress (CWIP)/fixed assets. Asset-wise details
of borrowing costs included in the cost of major heads of CWIP/fixed assets through ‘Addition’ or ‘Deductions/
Adjustments’ column are given below:
` Lakh
Particulars Borrowing costs included in
fixed assets/ CWIP
For the year For the year
ended ended
31st March 2017 31st March 2016
Building:
Main Plant 3,809.92 3,635.07
Others 657.94 19.22
MGR Track and Signalling system 312.39 189.90
Plant and equipment 18,075.23 16,647.39
Others 117.91 647.49
Total 22,973.39 21,139.07
d) Information regarding gross block of tangible assets and accumulated depreciation under previous GAAP is as follows
Particulars Gross block Accumulated Net Block
as at depreciation as at
as at
01.04.2015 01.04.2015 01.04.2015
Land :
(including development expenses)
Freehold 12,172.30 - 12,172.30
Leasehold 0.00 0.00 0.00
Roads, bridges, culverts & helipads 124.31 38.81 85.50
Building :
Main plant 1,135.09 573.93 561.15
Others 2,699.59 614.26 2,085.33
Water Supply, drainage & sewerage system 44.45 13.53 30.92
MGR track and signalling system 899.83 127.78 772.04
Plant and machinery (including associated civil works) 61,275.02 10,706.07 50,568.95
Furniture and fixtures 190.90 66.16 124.74
Vehicles Owned 1.52 0.18 1.34
Office equipment 84.52 32.72 51.80
EDP, WP machines and satcom equip. 147.00 98.63 48.37
Construction equipments 334.57 83.25 251.32
Electrical Installations 637.76 91.68 546.09
Communication Equipments 1.13 0.31 0.81
Hospital Equipments 0.35 0.28 0.07
Total 79,748.32 12,447.59 67,300.74
136
2.Property Plant & Equipment
Intangible assets
Software 4.32 1.66 - 5.98 1.10 3.28 - 4.38 1.60 3.23

Total 4.32 1.66 - 5.98 1.10 3.28 - 4.38 1.60 3.23
Deemed Additions Deductions/ As at Upto For Deductions/ Upto As at As at
cost as at Adjustments 31.03.2016 01.04.2015 the year Adjustments 31.03.2016 31.03.2016 01.04.2015
01.04.2015
Software 2.49 1.83 - 4.32 - 1.10 - 1.10 3.23 2.49

Total 2.49 1.83 - 4.32 - 1.10 - 1.10 3.23 2.49
Information regarding gross block of intangible assets and accumulated depreciation under previous GAAP is as follows:
Particulars Gross block as at Accumulated Net Block as at
depreciation as at
01.04.2015 01.04.2015 01.04.2015
Software 26.56 24.07 2.49
Total 26.56 24.07 2.49
Depreciation/amortisation of tangible and intangible assets for the year is allocated as given below
` Lakh
Particulars For the year For the year
ended ended
31.03.2017 31.03.2016
Charged to Statement of Profit & Loss 6,027.01 5,155.06
Transferred to expenditure during construction period (net) - Note 27 120.35 129.58
Allocated to fuel cost 404.71 345.84
Total 6,552.08 5,630.48
A Maharatna Company
137
A Maharatna Company
Development of land 9,103.48 823.22 2,933.05 6,968.21 25.45
Roads, bridges, culverts & helipads 26.96 5.34 (2,588.04) 2,587.46 32.87
Buildings
Main plant 51,802.44 5,536.28 17,510.21 16,980.57 22,847.93
Others 346.15 52.34 (5.59) 95.99 308.10
Temporary erection 44.28 35.27 (345.59) 345.59 79.54
MGR track and signalling system 3,547.70 2,116.85 (99.81) 5,653.76 110.61
Earth dam reservoir 20.23 - - - 20.23
Plant and equipment 238,566.90 36,156.10 (25,639.83) 170,781.05 129,581.79
EDP/WP machines & satcom equipment 93.45 6.64 (19.63) 119.72 0.00
Construction equipments 16.94 0.91 4.95 - 12.90
Electrical installations 1,285.04 292.40 (138.12) 900.19 815.38
304,853.56 45,025.35 (8,388.41) 204,432.53 153,834.80
Expenditure pending allocation
Survey, investigation, consultancy and 6,429.07 103.12 6,201.87 - 330.32
supervision charges
Precommissiong Expenses (net) 999.71 1,510.31 2,510.02 - -
Expenditure during construction period 665.23 25,401.25 - - -
(net)*
Less: Allocated to related works - 26,066.48 - - -
312,947.57 45,973.56 323.49 204,432.53 154,165.12
Construction stores 9,876.22 3,879.70 - - 13,755.92
Total 322,823.79 49,853.26 323.49 204,432.53 167,921.04
* Brought from expenditure during construction period (net) - Note 27
138
A Maharatna Company
Particulars Deemed Additions Deductions/ Capitalised As at

cost as at Adjustments 31.03.2016
01.04.2016
Development of land 7,932.94 1,170.54 - - 9,103.48
Roads, bridges, culverts & helipads 13.96 13.00 - - 26.96
Buildings
Main plant 45,076.89 6,725.55 - - 51,802.44
Others 219.28 130.28 3.40 - 346.15
Temporary erection 31.55 12.73 - - 44.28
MGR track and signalling system 1,497.70 2,050.01 - - 3,547.70
Earth dam reservoir 20.23 - - 20.23
Plant and equipment 205,549.67 33,284.54 267.30 - 238,566.90
EDP/WP machines & satcom equipment 85.75 7.69 - - 93.45
Construction equipments 14.81 2.13 - - 16.94
Electrical installations 927.25 353.34 (4.46) - 1,285.04
261,370.01 43,749.79 266.24 - 304,853.56
Survey, investigation, consultancy and 6,246.73 182.34 - - 6,429.07
supervision charges
Precommissiong Expenses (net) 543.13 456.58 - - 999.71
Expenditure during construction period (net)* - 25,170.72 - - 665.23
Less: Allocated to related works - 24,505.49 - - -
268,159.88 45,053.94 266.24 - 312,947.57
Total 276,566.93 46,523.10 266.24 - 322,823.79
a) Pre-commissioning expenditure for the year amount to ` 1,793.11 lakhs (Previous year ` 456.58 lakhs) after adjustment
of pre-commissioning sales of ` 282.80 lakhs (Previous Year Nil) resulted in net pre-commissioning expenditure of
` 1,510.31 lakhs (Previous year ` 456.58 lakhs)
b) Estimated amount of contracts remaining to be executed on capital account and is not provided for as at 31 March
2017 is ` 65,356.81 lakhs (31 March 2016 is ` 73,066.88 lakhs and 1 April 2015 is ` 63,451.35 lakhs).
c) Construction stores are net of provision for shortages pending investigation amounting to ` 54.82 lakhs (31 March 2016
` 167.27 lakhs and 1 April 2015 ` 99.14 lakhs).
139
A Maharatna Company
4. Other Non Current Assets

` Lakh
Particulars 31.03.2017 31.03.2016 01.04.2015
Capital advances
Unsecured
Covered by bank guarantee 4,117.87 4,400.20 3,473.60
Others 4,428.97 3,574.95 4,462.25
8,546.84 7,975.15 7,935.85
Security Deposit 84.63 100.17 84.63
Advance tax & tax deducted at source 334.05 305.26 99.72
Total 8,965.52 8,380.57 8,120.20
Disclosure with respect to Capital advances pertaining to related parties is made in Note 29.
5. Inventories
` Lakh
Particulars 31.03.2017 31.03.2016 01.04.2015
Coal 820.87 1,499.75 178.80
Fuel Oil 9.53 134.36 137.57
Components and Spares 2,106.38 1,882.86 1,691.65
Chemicals & consumables 136.68 114.89 225.09
Steel scrap 118.82 112.19 354.63
Loose tools 6.35 7.10 14.25
Others (refer note c below) 343.31 376.57 303.31
3,541.93 4,127.71 2,905.31
Less: Provision for shortages 58.73 103.23 87.13
Provision for obsolete/unserviceable items/diminution in value of
surplus inventory 0.51 0.51 -
Total 3,482.69 4,023.98 2,818.18
a) Inventories include material-in-transit

Coal 321.68 - -
Component & spares 12.20 83.16 103.70
Others - 0.48 1.18
b) Inventory items, other than steel scrap, have been valued as per accounting policy no. C.6 (Note 1). Steel scrap
has been valued at estimated realisable value.
c) Inventories-Others includes steel, cement, electrical consumables etc.
140
A Maharatna Company
6. Trade Receivables
` Lakh
Particulars 31.03.2017 31.03.2016 01.04.2015
Unsecured, considered good 11,941.17 15,435.76 11,045.93
Total 11,941.17 15,435.76 11,045.93
Disclosure with respect to trade receivables from related parties is made in Note 29.
7. Cash and Cash Equivalents

` Lakh
Particulars 31.03.2017 31.03.2016 01.04.2015
Balances with banks
Current accounts 24.26 25.78 60.48
Deposits with original maturity upto three months 1,402.42 1,809.34 5,779.79
Cheques in hand 0.26 - -
Total 1,426.94 1,835.12 5,840.28

` Lakh
Particulars 31.03.2017 31.03.2016 01.04.2015
Unbilled revenue 2,655.63 3,125.39 5,526.87
Total 2,655.63 3,125.39 5,526.87
9. Other Current assets

` Lakh
Particulars 31.03.2017 31.03.2016 01.04.2015
Interest accrued on advances to contractor - - 26.03
Claims recoverable
Unsecured, considered good 47.99 16.54 8.88
Unsecured Advances
Employees 0.67 2.54 -
Contractors & suppliers 2,472.36 1,250.78 5,430.21
Prepaid insurance 197.45 87.13 99.73
Assets held for disposal 0.48 0.48 0.48
Total 2,718.94 1,357.47 5,565.33
141
A Maharatna Company
10. Share capital

` Lakh
31.03.2017 31.03.2016 01.04.2015
Authorised
2,00,00,00,000 Equity shares of par value ` 10/- each (1,40,00,00,000
Equity shares of par value ` 10/- each as at 31 March, 2016 and
1,00,00,00,000 Equity shares of par value ` 10/- each as at 1 April 2015) 200,000.00 140,000.00 100,000.00
1,12,22,43,040 shares of par value ` 10/- each (1,06,15,07,680
shares of par value ` 10/- each as at 31 March 2016 and
1,00,00,00,000 shares of par value ` 10/- each as at 1 April 2015) 112,224.30 106,150.77 100,000.00
31.03.2017 31.03.2016
Opening number of shares 1,06,15,07,680 1,00,00,00,000
Shares issued during the year 6,07,35,360 6,15,07,680
Shares bought back during the year - -
Closing number of shares 1,12,22,43,040 1,06,15,07,680
share holding at the meetings of shareholders.
c) Details of shareholders holding more than 5% shares in the Company:
Particulars No. of shares %age holding
As on 31.03.2017
NTPC Ltd. 72,94,57,976 65.00
Bihar State Power Genration Co. Ltd. (BSPGCL) 39,27,85,064 35.00
As on 31.03.2016
NTPC Ltd. 68,99,79,992 65.00
As on 1.04.2015
NTPC Ltd. 65,00,00,000 65.00
11. Other equity
` Lakh
31.03.2017 31.03.2016 01.04.2015
Share application money pending allotment 23,343.07 4,774.70 -
Corporate social responsibility (CSR) reserve 10.87 12.50 -
Retained earnings (7,200.89) (5,007.68) 825.48
Total 16,153.05 (220.48) 825.48
142
A Maharatna Company
For the year ended

31.03.2017 31.03.2016
a) Share application money pending allotment
Reconciliation
Opening balance 4,774.70 -
Add: Share application money received during the year 24,641.90 10,925.47
Less: Shares issued against share application money 6,073.54 6,150.77
Share application money pending allotment has been received from
NTPC Ltd. 23,343.07 3,103.96
Bihar State Power Genration Co. Ltd (BSPGCL) - 1,670.74
23,343.07 4,774.70
The shares are likely to be allotted in the financial year 2017-18.
The authorised share capital of the company is sufficient to cover the share capital amount on allotment of shares out
of the above share application money.
No amount is refundable out of above share application money and no interest is payable.
For the year ended
31.03.2017 31.03.2016
b) Corporate social responsibility (CSR) reserve
As per last financial statements 12.50 -
Add: Transfer from surplus - 20.23
Less: Expense during the year 1.62 7.73
Closing balance 10.87 12.50
In terms of section 135 of Companies Act, 2013 read with guidelines on corporate social responsibility issued by
Department of Public Enterprises(DPE), GoI,the Company is required to spent, in every finaicial year, at least two
percent of the average net profits of the company made during the three immedialtely preceeding financial years in
accordance with its CSR policy. The company has spent an amount of ` 1.62 lakhs (previous year ` 7.73 lacs) during the
year.
For the year ended
31.03.2017 31.03.2016
c) Retained earnings
Reconciliation
Opening balance (5,007.68) 825.48
Add: Loss for the year from Statement of Profit and Loss (2,193.21) (5,820.66)
Less: Transfer to CSR reserve - 12.50
Closing balance (7,200.89) (5,007.68)
143
A Maharatna Company
12. Non-Current Borrowings

` Lakh
31.03.2017 31.03.2016 01.04.2015
Term loans
From Banks
Secured
Rupee loans 177,382.70 171,787.88 155,260.25
From Others
Secured
Rupee loans 53,305.01 50,224.01 34,087.90
Unsecured
Rupee loans 12,100.00 171.43 342.86
Less: Current maturities of term loan
Secured
Banks 7,370.00
Others 447.00
Unsecured
Others 85.71 85.71
Total 234,970.71 222,097.61 189,605.29
1 Term Loans- Secured
a) Loan from consortium led by State Bank of India for expanansion project ( 2*195MW) at Kanti is secured by a first
priority charge on all assets of the Project, present & future, movable & immovable and land of 987.9293 acres. The
security will rank pari-pasu with all term lenders of the project. The charge has been created in favor of Security
trustee i.e. SBI Cap Trustee Co. Ltd. Legal mortgage of land in favor of security trustee has been executed for 877.18
acres of land.
b) Total sanctioned amount of loan and guarantee facility is ` 234,128 lakhs and `10,000 lakhs respectively. Repayment
period of the loan is 11 years and repayment will start from 30.09.2017 on quarterly basis.
c) The loan bears floating rate of interest linked to the SBI Base Rate.
d) In first phase the charge with Registrar of Companies (ROC) was filed on 27.09.2011 for 594.84 Acres of Land
and ROC issued certificate of Registration of Mortgage on 28.09.2011 , in second phase 282.34 Acres of land
was mortgaged on 07.11.2014 ROC issued certificate of Registration of Mortgage on 05.12.2014, Certifying that
the Mortgage/charge has been registered for `244,128 lakhs in their office in accordance with the provisions
contained in section 125 to 130 of the Companies Act, 1956 on 28th September 2011.
2A Term Loan- Unsecured
a) The term loan of ` 12,100.00 lakhs has been taken from Holding company NTPC Ltd. in FY 2016-17.
b) The loan is repayable in two equal half yearly installments starting from 30th June 2019.
c) The rate of interest on the loan is 10 % p.a. on (Quaterly rests)
2B Term Loan- Unsecured
a) The balance outstanding as on 31.03.2016 & 01.04.2015 represents term loan taken from from Holding company
NTPC Ltd. in earlier years.
b) The loan was repayable in 7 years on half yearly basis starting from 30th September 2008.
c) The rate of interest on the loan was at par with SBAR (State Bank Advance Rate) as adjusted to half yearly rests
with a year of 365 days.
3 There has been no default in repayment of any of the Loans or interest thereon as at the end of the year.
144
A Maharatna Company
13. Other Non-current Financial Liabilities

` Lakh
31.03.2017 31.03.2016 01.04.2015
Other liabilities
Payable for capital expenditure 7,077.51 4,907.94 4,911.44
Total 7,077.51 4,907.94 4,911.44
a) Payable for capital expenditure represents liability towards equipment supplier and erection vendors pending
evaluation of performance and guarantee test results.
14. Deferred tax liabilities (net)
` Lakh
31.03.2017 31.03.2016 01.04.2015
Difference in book depreciation and tax depreciation - - 1,815.61
Less: Deferred tax assets
Provisions & Other disallowances for tax purpose - - 63.90
- - 1,751.71
a) Deferred tax assets and deferred tax liabilities have been offset as they relate to the same governing laws.
Movement in deferred tax balances
31 March 2016
Particulars Net balance Recognised in Net balance
1 April 2015 profit or loss 31 March 2016
Difference in book depreciation and tax depreciation 1815.61 (1815.61) -
Provisions 63.90 (63.90) -
Tax assets/(liabilities) 1751.71 (1751.71) -
15. Current Borrowings

` Lakh
31.03.2017 31.03.2016 01.04.2015
Secured loans repayable on demand
From Banks 11,898.13 18,776.82 14,851.36
a) The loan is secured by hypothecation of trade receivables and stock in trade of Stage 1.
b) The loan bears a floating rate of interest rate linked to SBI base rate.
c) There has been no default in repayment of any of the loans or interest thereon during the year.
16. Trade Payables
` Lakh
31.03.2017 31.03.2016 01.04.2015
For goods and services 8,470.71 8,788.89 4,633.41
a) Revision of pay scales of the employees of the Central Government was due w.e.f 1st January 2016. Pending acceptance
of the recommedations of the VII Pay Commission constituted by the Central Government, provision of Nil (previous
year ` 37.32 lakhs) towards the payments due to the employees of Central Industrial Security Force had been made on
an estimated basis.
b) Refer Note No. 29 for amounts due to related party.
c) Information in respect of micro and small enterprises is disclosed in Note 33.
145
A Maharatna Company
17. Other Current Financial Liabilities

` Lakh
31.03.2017 31.03.2016 01.04.2015
Current maturities of term loan
Secured
Banks 7,370.00 - -
Others 447.00 - -
Unsecured
Others - 85.71 85.71
Other payables
Deposits from contractors and others 116.95 143.47 143.05
NTPC Ltd 6,560.65 4,963.54 3,838.19
Others 970.30 989.06 956.14
Total 42,571.86 28,488.75 25,186.49
a) The pay revision of the employees of the Company is due w.e.f 1st January 2017. Department of Public Enterprises,
GOI (DPE) has constituted the 3rd Pay Revision Committee to review the structure of pay scales and allowances/
benefits of various categories of Central Public Sector Enterprises and suggest changes after taking in to account 7th
Central Pay Commission recommendations applicable to central government employees. The recommendations of the
committee have been submitted and guidelines are yet to be issued by DPE. Pending issuance of the same, provision
for the year amounting to ` 235.02 lakhs has been made towards pay revision on an estimated basis having regard to
the recommendations of the committee.
b) Other payables - others includes balance payable to BSPGCL,etc.
c) Information in respect of micro and small enterprises is disclosed in Note 33.
18. Other Current Liabilities
` Lakh
31.03.2017 31.03.2016 01.04.2015
Other payables
Advance from customers 1,541.62 1,165.08 1,364.08
Total 2,298.34 1,308.71 1,552.23
19. Short-Term Provisions
` Lakh
31.03.2017 31.03.2016 01.04.2015
Provisions for obligations incidental on land acquisition 1,799.75 1,885.50 1,946.75
Shortages in fixed assets pending investigation 1.74 1.74 1.74
Total 1,801.49 1,887.24 1,948.49
146
A Maharatna Company
Provision for obligations incidental to land acquisition includes expenditure on rehabilitation & resettlement (R&R) including
the amounts payable to the project affected persons (PAPs) towards, expenditure for providing community facilities and
expenditure in connection with environmental aspects of the project. Company has estimated the provision based on the
Rehabilitation Action Plan (RAP) approved by the board/competent authority. The outflow of said provision is expected to
be incurred immediately on fulfilment of conditions.
Movement in provisions:
` Lakh
31.03.2017 31.03.2016
Carrying amount at the beginning of the year 1,885.50 1,946.75
Add: Additions during the year - -
Less: Amounts used during the year 85.76 61.25
Carrying amount at the end of the year 1,799.75 1,885.50
There is no movement in provision for shortages in fixed assets pending investigation during the year
20. Current tax liabilities (net)
` Lakh
31.03.2017 31.03.2016 01.04.2015
Current tax (net of advance tax) - - 926.69
Total - - 926.69
21. Deferred revenue

` Lakh
31.03.2017 31.03.2016 01.04.2015
On account of government grants 28,570.35 32,582.35 36,594.34
Total 28,570.35 32,582.35 36,594.34
a) Government grants represents amount received from Government of India through Government of Bihar under RSVY
for renovation and modernisation of stage I (2*110 MW).
b) There are no unfulfilled conditions or other contingencies attached to above grant.
Movement in Government grants:
` Lakh
31.03.2017 31.03.2016
Add: Additions during the year - -
Less: Amounts used during the year 4,012.00 4,012.00

` Lakh
ended ended
31.03.2017 31.03.2016
Energy sales (including electricity duty) 34,220.95 33,012.32
Energy internally consumed 592.27 527.88
Other operating revenues
Recognized from deferred revenue - government grant 4,012.00 4,012.00
Total 38,825.22 37,552.20
147
A Maharatna Company
a) The CERC has issued final tariff order for the period (01.11.2013-31.03.2014) for U#1 on 09.02.2016. Sales for the FY
2016-17 has been provisionaly accounted for both units (U#1 & U#2) based on the CERC order Dt. 09.02.2016.
b) U#1 of Stage-II (2X195MW) was declared commercial w.e.f 00:00 Hrs of 18.03.2017. Fixed charge accounting of this
unit has been done based on the 85% of fixed chagres claimed in tariff petition filed with CERC. For variable charges
parameters has been taken based on 210MW size units since no comparative units of this size of 195MW is operational.
c) Pending issue of Tariff orders w.e.f 01.04.2014 for KBUNL , beneficairies are billed in accordance with the tariff
approved and applicable as on 31St March 2014 and as provided in the Regulation 2014. The energy charges are
provisionally billed based on the GCV “as received” measured after the Secondary crusher till 30th September 2016 and
GCV measured on Wagon Top w.e.f 01.10.2016.
d) As per regulation 45 of CERC regulation 2014-19 (Late payment surcharge) - In case the payment of any bill for charges
payable under these regulations is delayed by a beneficiary , beyond a period of 60 days from the date of billing, a
late payment surcharge at the rate of 1.50% per month shall be levied by the generating company . Accordingly the
amount recoverable from the beneficiary has been accounted as ‘ Surcharge income from beneficary’ in note 23.
e) Revenue from operations include ` 592.27 (previous year ` 527.88) towards energy internally consumed valued at
variable cost of generation and the corresponding amount is included in power charges (Note-26)
23. Other Income
` Lakh
ended ended
31.03.2017 31.03.2016
Interest from
Advance to contractors 387.27 207.52
Deposits with banks 4.89 8.14

Surcharge income from beneficiaries 2,445.67 -
Other receipt from contractor/Suppliers 0.70 0.80
Sale of scrap 130.35 52.05
Provision written back 197.12 99.25
Profit on disposal of Fixed Assets - 0.11
Miscellaneous income* 35.55 62.08
3,201.55 429.95
Less: Transferred to expenditure during construction period (net)- Note 27 396.53 219.61
Total 2,805.02 210.34
*Miscellaneous income includes income from Hire Charges, rent received etc.
24. Employee Benefit Expense

` Lakh
ended ended
31.03.2017 31.03.2016
4,498.27 4,194.83
Less: Allocated to fuel cost 188.19 206.32
Transferred to expenditure during construction period (net)- Note 27 1,275.40 1,484.97
Total 3,034.67 2,503.54
148
A Maharatna Company
In accordance with the Accounting Policy no. C.13 , an amount of ` 625.40 lakhs (previous year ` 612.65 lakhs) towards
provident fund, pension, gratutity, post retirement medical facilities & other terminal benefits and ` 172.60 lakhs (previous
year ` 164.66 lakhs) towards leave & other benefits, are paid /payable to the holding company (NTPC) and included in
‘Employee Benefits’.
In accordance with the Accounting Policy no. C.13 , an amount of ` Nil lakhs (previous year ` 15.66 lakhs) towards pension,
and ` Nil lakhs (previous year ` 11.23 lakhs) towards leave benefits, are paid /payable to the other promoting partner
(BSPGCL) and included in ‘Employee Benefits’.
In respect of the Company’s employee, an amount of ` 17.05 lakhs (previous year ` 17.57 lakhs) towards gratuity and
` 26.87 lakhs (previous year ` 42.34 lakhs) towards leave benefits is payable.
25. Finance Costs
` Lakh
ended ended
31.03.2017 31.03.2016
Finance charges on financial liabilities measured at amortised cost
Rupee term loans 22,074.56 21,138.50
Cash credit 1,405.28 1,719.48
Others-Loan from holding company 326.82 44.35
Unwinding of discount on vendor liabilities 402.63 665.23
24,209.29 23,567.56
Other borrowing costs- upfront fee 10.08 0.57
24,219.37 23,568.13
Less: Transferred to expenditure during construction period (net) - Note 27 22,308.17 21,804.30
Total 1,911.20 1,763.83
26. Other Expenses
` Lakh
Particulars For the year ended For the year ended
31.03.2017 31.03.2016
Less: Recovered from contractors & employees 3.49 5.09
588.79 522.79
Stores Consumed 135.98 190.45
Rent 9.62 24.60
Buildings 128.80 299.04
Machinery 1,978.45 2,401.03
Others 373.66 222.87
Insurance 342.47 251.03
Interest payable to customers - 246.81
Rates and taxes 0.33 2.29
Water cess & environment protection cess 0.84 14.20
Less: Receipt from sale of tenders 0.68 0.99
149
A Maharatna Company
` Lakh
Particulars For the year ended For the year ended
31.03.2017 31.03.2016
23.36 38.73
Advertisement and publicity 1.58 0.31
Security expenses 1,425.69 1,340.54
Expenses for guest house 127.73 108.45
Less: Recoveries 1.48 0.96
126.25 107.48
Brokerage & commission 10.69 -
Ash utilisation & marketing expenses 0.44 -
Books and periodicals - 0.07
Hire charge of vehicles 120.12 140.94
Bank charges 64.73 32.24
Loss on disposal/write-off of fixed assets - 1.11
6,194.68 6,580.19
Less: Allocated to fuel cost 320.78 314.69
Transferred to expenditure during construction period (net) - Note 27 2,093.86 1,971.48
3,780.05 4,294.01
Corporate Social Responsibility (CSR) expense - 7.73
Provisions for
Shortage in stores 27.03 73.49
Obsolete/Dimnuition in the value of surplus store - 0.51
Shortage in construction stores 13.16 109.99
3,820.23 4,485.73
a) Miscellaneous expenses includes Horticulture expenses,
hiring of DG set etc.
b) Details in respect of payment to auditors:
As auditor
Audit fee 1.39 1.15
Tax audit fees 0.37 0.23
In other capacity
Other services (certification fee) 0.77 0.74
Reimbursement of expenses 1.00 0.35
Total 3.53 2.46
150
A Maharatna Company
27. Expenditure During Construction Period (net)

` Lakh
ended ended
31.03.2017 31.03.2016
A. Employee benefits expense
Total (A) 1,275.40 1,484.97
B. Finance costs
Interest on
Rupee term loans 21,909.25 21,138.50
Unwinding of discount on account of vendor liabilities 388.84 665.23
Other borrowing costs- upfront fee 10.08 0.57
Total (B) 22,308.17 21,804.30
C. Depreciation and amortisation 120.35 129.58
D. Generation, administration & other expenses
Rent 3.27 17.41
Others 87.45 120.91
Insurance 33.46 54.12
Security expenses 1,053.68 840.48
EDP Hire and other charges 2.89 1.26
Total (D) 2,093.86 1,971.48
E. Less: Other income
Interest from contractors 387.22 207.52
Total (E) 396.53 219.61
Grand total (A+B+C+D-E) 25,401.25 * 25,170.72*
* Carried to Capital work-in-progress - (Note 3)
151
A Maharatna Company

The company has prepared its first Financial Statements in accordance with Ind AS for the year ended 31 March 2017.
For periods up to and including the year ended 31 March 2016, the Company prepared its financial statements in
accordance with Indian GAAP, including accounting standards notified under the Companies (Accounting Standards)
Rules, 2006 (as amended). The effective date for Company’s Ind AS Opening Balance Sheet is 1 April 2015 (the date of
transition to Ind AS).
Financial Statements according to Ind AS. These accounting principles and measurement principles must be applied
Statements.
i) Property, plant and equipment & Intangible assets
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and
equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the
previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for
de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38, Intangible
Assets. Accordingly, the company has elected to measure all of its property, plant and equipment and intangible
assets at their previous GAAP carrying value.
ii) Long term foreign currency monetary items
The Company has elected to continue the policy adopted for accounting for exchange differences arising from
translation of long-term foreign currency monetary items recognised in the financial statements for the period
ending immediately before the beginning of the first Ind AS financial reporting period as per the Indian GAAP.
152
A Maharatna Company
Reconciliation of Assets, Equity & Liabilities as at 1 April 2015 and as at 31 March 2016
` Lakh
1 April 2015 31 March 2016

GAAP* GAAP*
ASSETS
Non-current assets
Property, plant and 67,300.74 - 67,300.74 67,739.37 43.91 67,783.28
equipment
Capital work in progress 276,566.93 - 276,566.93 322,240.36 583.44 322,823.79
Other Intangible assets 2.49 - 2.49 3.23 - 3.23
Other non-current assets 8,120.20 - 8,120.20 8,380.57 - 8,380.57
Current Assets
Inventory 2,818.18 - 2,818.18 4,068.26 (44.28) 4,023.98
Financial assets
Trade Receivables 11,045.93 - 11,045.93 15,435.76 - 15,435.76
Cash and cash 5,840.28 - 5,840.28 1,835.12 - 1,835.12
equivalents
Other current 5,526.87 - 5,526.87 3,125.39 - 3,125.39
financial assets
Other current assets 5,565.33 - 5,565.33 1,357.47 - 1,357.47
Total Assets 382,786.94 - 382,786.94 424,185.52 583.07 424,768.59
Equity
Other equity (552.04) 1,377.52 825.48 (1,597.63) 1,377.14 (220.48)
Liabilities
Borrowings 189,605.29 0.00 189,605.29 222,097.60 0.00 222,097.61
Other financial 6,288.96 (1,377.52) 4,911.44 5,702.02 (794.08) 4,907.94
liabilities
Deferred tax liabilities 1,751.71 - 1,751.71 - - -
(net)
Current liabilities
Borrowings 14,851.36 (0.00) 14,851.36 18,776.82 (0.00) 18,776.82
Trade payables 4,633.41 - 4,633.41 8,788.88 0.00 8,788.89
Other financial 25,186.49 (0.00) 25,186.49 28,488.75 (0.00) 28,488.75
liabilities
Other current liabilities 1,552.23 (0.00) 1,552.23 1,308.71 - 1,308.71
Provisions 1,948.49 - 1,948.49 1,887.24 - 1,887.24
Current tax liabilities (net) 926.69 - 926.69 - - -
Deferred Revenue 36,594.34 - 36,594.34 32,582.35 - 32,582.35
Total equity and liabilities 382,786.94 (0.00) 382,786.94 424,185.52 583.07 424,768.59
* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes of
this note.
Reconciliation of profit for the year ended 31 March 2016
153
A Maharatna Company
There is an impact on statement of profit & loss by ` (0.37) lakhs due to depreciation on Capital spares recognised due
to implementation of Ind-AS. The impact of finance cost recognised on vendor liabilities during FY 2015-16 amounts to
` 665.23 Lakhs and impact of discounting of vendor liabilities incurred during 2015-16 amounts to ` 81.79 Lakhs. The net
impact of above adjustments has increased Capital work in progress by ` 583.44 Lakhs with corresponding decrease in
vendor liabilities.
31 March 2016 1 April 2015

Adjustments:
Recognition of financial assets/liabilities at amortised cost 1,377.52 1,377.52
depreciation on Capital spares recognised due to implementation of Ind-AS (0.37) -
(a) Financial liabilities
Under Indian GAAP, liabilities such as payable for capital expenditure are recorded at cost. However, under Ind AS,
liabilities in which the Company has a contractual obligation to deliver cash are classified as financial liabilities and
recorded at amortized cost. Therefore, such financial liabilities have been discounted to present value since they do
not carry any interest. The upfront benefit on transition date due to the discounting has been adjusted against the
retained earnings. Further, interest cost on unwinding of discount has been capitalized to the cost of property, plant
and equipment where such interest cost can be capitalized in accordance with Ind AS 23 ‘Borrowing cost’ otherwise
charged off to statement of profit or loss. The effect of the adjustments resulted in reduction of the value of financial
liabilities by ` 1,377.52 lakhs along with corresponding increase in retained earnings as on the transition date. During
the year ended 31st March 2016, value of financial liabilites was reduced by ` 794.08 lakhs by corresponding increase in
statement of profit and loss (Finance Cost) by ` 665.23 Lakhs and reduction in Capital Work In Progress by ` 81.79 lakhs.
Finance Cost has been capitalised being expenditure during construction period.
(b) Statement of cash flows
The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.
29. Disclosure as per Indian Accounting Standard - 24 on ‘Related Party Disclosures’
a) List of Related parties:
i) Parent Company:
1. NTPC Limited
ii) Joint Venture of parent company:
Utility Powertech Ltd
iii) Key Managerial Personnel (KMP):
Shri K.K. Sharma Chairman
Mrs. Ruchi Aggarwal Company Secretary
Shri P. Amrit Non-Executive Director
Shri R. Lakshmanan Non-Executive Director
Shri K.S. Garbyal Non-Executive Director
Mrs. Sangeeta Bhatia Non-Executive Director
Shri R.K. Sinha Chief Executive Officer
Shri A.K.Singh (01.04.16-21.01.17) Chief Finance Officer
Shri K.K. Mishra (21.02.17-31.03.17) Chief Finance Officer
iv) Entities under the control of the same government:
The Company is a subsidiary of Central Public Sector Undertaking (CPSU) controlled by Central Government
by holding majority of shares (refer Note 10). Pursuant to Paragraph 25 & 26 of Ind AS 24, entities over which
the same government has control or joint control of, or significant influence, then the reporting entity and
154
A Maharatna Company
other entities shall be regarded as related parties. The Company has applied the exemption available for
government related entities and have made limited disclosures in the financial statements. Such entities with
which the Company has significant transactions include but not limited to Eastern Coalfields Ltd., Bharat
Petroleum Corporation Ltd., Hindustan Petroleum Corporation Ltd., Central Coalfields Ltd., Bharat Coking Coal
Ltd., Bharat Heavy Electricals Ltd., RITES Ltd. etc.
b) Transactions with the related parties are as follows:
Transactions with the parent company: ` Lakh
Sl. Name of the Company Nature of transaction 2016-17 2015-16

No.
1 NTPC Limited Equity Contribution 24,186.90 7,101.96
2 Bihar State Power Generation Company Limited Equity Contribution 455.00 3,823.51
(BSPGCL) (erstwhile B.S.E.B)
3 NTPC Limited Equity share issued 3,947.80 3,998.00
4 Bihar State Power Generation Company Limited Equity share issued 2,125.74 2,152.77
(BSPGCL) (erstwhile B.S.E.B)
5 NTPC Limited Unsecured Loan 12,100.00 -
6 NTPC Limited Deputation of employees 1,543.33 1,124.34
7 NTPC Limited Consultancy Services 144.33 171.72
Transactions with the joint venture of parent company: ` Lakh

No.
1 Utility Powertech Limited Manpower Supply Services 1,069.80 1,053.13
2 Bhartiya Rail Bijlee Company Limited (BRBCL) Services - 6.61
Transactions with Other related parties: ` Lakh

No.
1 NBPDCL/SBPDCL Sales of power 34,220.95 33,012.32
Compensation to Key Managerial Personnel ` Lakh
Sl. Name Nature of transaction 2016-17 2015-16
No.
1 Rajiva Kumar Sinha Short term benefits 31.38 32.00
2 Rajiva Kumar Sinha Post retirement benefits 10.56 9.73
3 Rajiva Kumar Sinha Other Long term benefits 0.13 0.12
4 K K Mishra Short term benefits 3.25 0.00
5 K K Mishra Post retirement benefits 1.26 0.00
6 K K Mishra Other Long term benefits 0.02 0.00
7 A K Singh Short term benefits 23.99 31.41
8 A K Singh Post retirement benefits 6.81 9.73
9 A K Singh Other Long term benefits 0.10 0.13
155
A Maharatna Company
Transactions with the related parties under the control of the same government: ` Lakh

No.
1 Eastern Coalfields Ltd. Purchase of Coal 13,593.39 21,748.18
2 Bharat Petroleum Corporation Ltd. Purchase of LDO 2,413.08 1,229.44
3 Hindustan Petroleum Corporation Ltd. Purchase of LDO 404.59 206.33
4 Central Coalfields Ltd. Purchase of Coal 4,897.92 -
5 Bharat Coking Coal Ltd. Purchase of Coal 1,536.88 1,303.31
6 Bharat Heavy Electricals Ltd. Purchase of Capital Goods 5,539.40 8,378.92
& Erection Services
Purchase of Spares 944.83 860.60
7 RITES Ltd. Technical Consultancy 2,023.83 924.16
Services
c) Outstanding balances with related parties are as follows:
` Lakh
Particulars 31 March 2017 31 March 2016 1 April 2015

Amount recoverable for sale/purchase of goods and services
- From NTPC Limited
- From Utility Powertech Limited
- From NBPDCL/SBPDCL 11,260.10 15,236.92 10,889.49
Amount payable for sale/purchase of goods and services
- To NTPC Limited 6,632.61 5,013.56 3,838
- To Utility Powertech Limited 240.44 187.62 165.64
- To Bhartiya Rail Bijlee Company Limited (BRBCL) 9.36 9.36 2.75
d) Terms and conditions of transactions with the related parties
(1) Transactions with the related parties are made on normal commercial terms and conditions and at market rates.
(2) The Company is assigning jobs on contract basis, for sundry works in plants/stations/offices to M/s Utility Powertech
Ltd (UPL), a 50:50 joint venture between NTPC Ltd. and Reliance Infrastructure Ltd. UPL inter-alia undertakes jobs
such as overhauling, repair, refurbishment of various mechanical and electrical equipments of power stations. The
Company has entered into Power Station office Maintenance Agreement with UPL from time to time. The rates are
fixed on cost plus basis after mutual discussion and after taking into account the prevailing market conditions.
(3) NTPC Limited is seconding its personnel to the company as per the terms and conditions agreed between
the companies, which are similar to those applicable for secondment of employees to other companies and
institutions. The cost incurred by NTPC Limited towards superannuation and employee benefits are recovered
from the company.
30. Fair Value Measurements
(a) Financial instruments by category
All financial assets and liabilities viz. trade receivables, cash and cash equivalents, borrowings, trade payables,
employee related liabilities, payable to related parties, deposits from contractors and suppliers and payable for
expenses are measured at amortized cost.
156
A Maharatna Company
(b) Fair value hierarchy

To provide an indication about the reliability of the inputs used in determining fair value of financial instruments
measured at amortised cost for which fair value is being disclosed, the company has classified these into levels
prescribed under the Ind AS 113, ‘ Fair value measurement’ details of which are as under:
` Lakh
Liabilities which are measured at amortised cost for which Level 2*

fair values are disclosed
31 March 2017 31 March 2016 1 April 2015
Financial liabilities:
Rupee Term Loan 247,686.00 211,943.00 184,133.00
Total 254,639.00 216,583.00 189,263.00
*Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in
level 2.
(c) Fair value of financial assets and liabilities measured at amortized cost
` Lakh

Carrying Fair value Carrying Fair value Carrying Fair value
amount amount amount
Rupee term loans 242,787.71 247,686.00 222,183.32 211,943.00 189,691.00 184,133.00
Payable for capital 7,077.51 6,953.00 4,907.94 4,640.00 4,911.44 5,130.00
expenditure
249,865.21 254,639.00 227,091.26 216,583.00 194,602.44 189,263.00
The carrying amounts of short term trade receivables, cash and cash equivalents, borrowings, trade payables,
employee related liabilities, payable to related parties, deposits from contractors and suppliers and payable for
expenses are considered to be the same as their fair values, due to their short-term nature.
The fair values for Rupee term loans and payable for capital expenditure were calculated based on cash flows
discounted using a current lending rate. They are classified as level 2 fair values in the fair value hierarchy due to
the use of observable market inputs.
The Company’s principal financial liabilities comprise loans in domestic currency and payables for capital expenditure.
The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial
assets include cash and short-term deposits.
The Company is exposed to the following risks from its use of financial instruments:
- Credit risk
- Liquidity risk
- Market risk
This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives,
policies and processes for measuring and managing risk.
157
A Maharatna Company
Credit risk
meet its contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from loans &
advances, cash & cash equivalents and deposits with banks and financial institutions.
Trade receivables and Unbilled Revenue
The Company primarily sells electricity to bulk customers comprising, mainly Discoms owned by State Government. The
Company has a robust payment security mechanism in the form of Letters of Credit (LC). The risk of default in case of
power supplied to these state owned companies is considered to be insignificant. The Company has not experienced
any significant impairment losses in respect of trade receivables in the past years. A default occurs when in the view
of management there is no significant possibility of recovery of receivables after considering all available options for
recovery.
Cash and cash equivalents and Deposits with banks
The company has banking operations with State Bank of India and its subsidiaries which are scheduled banks and are
owned by Government.The risk of defalut with state controlled entities is considered to be insignificant.
(i) Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit
risk at the reporting date was:
` Lakh
2017 2016 2015
Financial assets for which loss allowance is measured using 12
months Expected Credit Losses (ECL)
Trade Receivables 11,941.17 15,435.76 11,045.93
Cash and cash equivalent 1,426.94 1,835.12 5,840.28
Unbilled Revenue 2,655.63 3,125.39 5,526.87
Total 16,023.74 20,396.27 22,413.08
(ii) Provision for expected credit losses
Financial assets for which loss allowance is measured using 12 month expected credit losses
The company has trade receivables and other assets where the counter- parties have strong capacity to meet the
obligations and where the risk of default is very low. Hence based on historic default rates, the Company believes
that, no impairment allowance is necessary in respect of above mentioned financial assets.
(iii) Ageing analysis of trade receivables
The ageing analysis of the trade receivables and unbilled revenue is as below:
` Lakh
Ageing 0-30 days 31-60 days 61-90 days 91-120 days More than Total
past due past due past due past due 120 days
past due
31 March 2017 681.07 1,892.86 1,348.45 7,822.34 196.44 11,941.17
31 March 2016 887.63 3,679.88 4,063.98 6,647.84 156.44 15,435.76
1 April 2015 156.44 7,836.96 3,052.53 - - 11,045.93
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to
managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities
when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Company’s reputation.
158
A Maharatna Company
The Company has an appropriate liquidity risk management framework for the management of short, medium and
long term funding and liquidity management requirements. The Company manages liquidity risk by maintaining
adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast
and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The Company’s treasury department is responsible for managing the short term and long term liquidity requirements
of the Company. Short term liquidity situation is reviewed daily by Treasury. The Board of directors has established
policies to manage liquidity risk and the Company’s treasury department operates in line with such policies.Any
breaches of these policies are reported to the Board of Directors.Long term liquidity position is reviewed on a
regular basis by the Board of Directors and appropriate decisions are taken according to the situation.
Typically the Company ensures that it has sufficient cash on demand to meet expected operational expenses for
a period of 60 days, including the servicing of financial obligations, this excludes the potential impact of extreme
circumstances that cannot reasonably be predicted, such as natural disasters.
(i) Financing arrangements
The company had access to the following undrawn borrowing facilities at the end of the reporting period:
` Lakh

Floating-rate borrowings
Term loans 107,212.29 127,816.68 160,309.00
(ii) Maturitites of financial liabilities
The following are the contractual maturities of derivative and non-derivative financial liabilities, based on
contractual cash flows:
31 March 2017 ` Lakh
Contractual maturities of Contractual cash flows

financial liabilities
3 months 3-12 1-2 years 2-5 years More than Total
or less months 5 years
Non-derivative financial
liabilities
Rupee Term Loan - 7,817.00 14,248.00 58,356.00 162,366.71 242,787.71
Trade Payables 8,470.71 - - - - 8,470.71
Payable for Capital 26,603.01 7,077.51 33,680.51
Expenditure
Loans repayable on 11,898.13 - - - - 11,898.13
demand from bank
Deposits from 116.95 - - - - 116.95
contractors and others
Payable to related 6,560.65 - - - - 6,560.65
parties
Payable to employees 503.96 - - - - 503.96
Others 970.30 - - - - 970.30
Total 55,123.69 7,817.00 21,325.51 58,356.00 162,366.71 304,988.91
159
A Maharatna Company
31 March 2016 ` Lakh

financial liabilities 3 months 3-12 1-2 years 2-5 years More than Total
liabilities
Rupee Term Loan - 85.71 7,902.71 44,628.00 169,566.89 222,183.32
Trade Payables 8,788.89 - - - - 8,788.89
Expenditure
demand from bank
Deposits from 143.47 - - - - 143.47
parties
Others 989.06 - - - - 989.06
Total 55,968.74 85.71 12,810.65 44,628.00 169,566.89 283,060.00
1 April 2015 ` Lakh

3 months 3-12 1-2 years 2-5 years More than Total
liabilities
Rupee Term Loan - 85.71 171.43 36,998.71 152,435.14 189,691.00
Trade Payables 4,633.41 - - - - 4,633.41
Expenditure
demand from bank
Deposits from 143.05 - - - - 143.05
parties
Others 956.14 - - - - 956.14
Total 44,585.55 85.71 5,082.87 36,998.71 152,435.14 239,187.99
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices
will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the
return.
160
A Maharatna Company
The Board of directors is responsible for setting up of policies and procedures to manage market risks of the company.
At present, any gain or loss on account of exchange risk variation shall form part of the capital cost from declaration
of Commercial Operation Date (COD) and shall be considered for calculation of tariff.
* Currency risk
The Company executes import agreements for the purpose of purchase of capital goods. Upto March 31, 2016 the
company till the date of commercial operation capitalised the exchange gain/loss on account of re-instatement/
actual payment of the vendor liabilities. Such capital cost is allowed by CERC as recovery from beneficiaries. If any
exchange gain/loss arise after the date of commercial operation the same will also be recovered from beneficiaries
as part of rate regulated asset. From April 01, 2016 exchange gain/loss on long term foreign currency monetary
item will be recovered from beneficiaries as a part of rate regulated asset. Hence there is no risk in case of foreign
exchange gain/loss on long term foreign currency monetary items. The exposure in case of foreign exchange gain/
loss on short term foreign currency monetary items is considered to be insignificant.
The currency profile of financial assets and financial liabilities as at March 31, 2017, March 31, 2016 and
April 1, 2015 are as below:
` Lakh
Particulars USD JPY Total
31 March 2017
Financial Liabilities
31 March 2016
1 April 2015
Sensitivity analysis
As per the CERC regulations, the gain/loss on account of exchange rate variations on all long term and short term
foreign currency monetary items (up to COD) is recoverable from beneficiaries. Hence, the impact of strengthening
or weakening of Indian rupee against USD and JPY on the statement of profit and loss would not be very significant.
Therefore, sensitivity analysis for currency risk is not disclosed.
Interest rate risk
The Company is exposed to interest rate risk arising from long term borrowing with floating interest rate. The Company
is exposed to interest rate risk because the cash flows associated with floating rate borrowing will fluctuate with
changes in interest rate.
Refer Note 12 for interest rate profile of the Company’s interest-bearing financial instrument at the reporting date.
Cash flow sensitivity analysis for variable-rate instruments
A change of 50 basis points in interest rates at the reporting date would have increased (decreased) CWIP(PPE) and/or
profit or loss (before tax) by the amounts shown below. This analysis assumes that all other variables remain constant.
The analysis is performed on the same basis for the previous year.
` Lakh

50 bp increase 50 bp decrease 50 bp increase 50 bp decrease
Rupee term loans 1,146.14 (1,146.14) 1,034.18 (1,034.18)
Of the above mentioned increase in the interest expense, major portion is expected to be capitalised and recovered
from beneficiaries.
161
A Maharatna Company
32. Disclosure as per Ind AS 33 on ‘Earnings per Share’

In `
31 March 2017 31 March 2016
Basic earnings per share (0.20) (0.57)
Diluted earnings per share (0.18) (0.55)
Nominal value per share 10 10
(a) Profit attributable to equity shareholders (in ` Lakhs) (2,193) (5,821)
(b) Weighted average number of equity shares ` Lakh
31 March 2017 31 March 2016

Opening balance of issued equity shares 10,615.08 10,000.00
Effect of shares issued during the year, if any 531.35 141.10
Weighted average number of equity shares for Basic EPS 11,146.43 10,141.10
Opening balance of issued equity shares 10,615.08 10,000.00
Effect of shares issued during the year, if any 1,509.26 501.55
Weighted average number of equity shares for Diluted EPS 12,124.34 10,501.55
33. Disclosure in respect of amount due to micro and small enterprises
Information in respect of micro and small enterprises as at 31st March 2017 as required by Micro, Small and Medium
Enterprises Development Act, 2006
` Lakh
Particulars 31.03.2017 31.03.2016 01.04.2015
Principal amount 301.82 53.30 -
b) Amount of interest paid in terms of Section 16 of the MSMED Act - - -
along with the amount paid to the suppliers beyond the appointed
day.
c) Amount of interest due and payable for the period of delay in making - - -
payment (which have been paid but beyond the appointed day
during the year) but without adding the interest specified under the
MSMED Act.
e) Amount of further interest remaining due and payable even in the - - -
succeeding years, until such date when the interest dues as above are
actually paid to the small enterprises, for the purpose of disallowances
as a deductible expenditure under Section 23 of MSMED Act
34. Disclosure as per Ind AS 17 on ‘Leases’
Operating leases
a) The Company’s significant leasing arrangements are in respect of operating leases of premises for residential use of
employees, offices and guest houses/transit camps for a period of one to three years. These leasing arrangements are
usually renewable on mutually agreed terms but are not non-cancellable.
b) Expenses (net) on operating lease of the premises for residential use of the employees amounting to ` 21.55 lakhs
(Previous year ` 24.55 lakhs) are included in Note-24 Employee Benefits.
162
A Maharatna Company
35. Capital Management

The Company’s objectives when managing capital are to:
- safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and
benefits for other stakeholders and
- maintain an appropriate capital structure of debt and equity.
The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital
through prudent management of deployed funds and leveraging opportunities in domestic and international financial
markets so as to maintain investor, creditor and market confidence and to sustain future development of the business.
The Company monitors capital, using a medium term view of three to five years, on the basis of a number of financial
ratios generally used by industry and by the rating agencies. The Company is not subject to externally imposed capital
requirements.
The Company monitors capital using gearing ratio which is net debt divided by total equity. Net debt comprises of long
term and short term borrowings less cash and cash equivalent. Equity includes equity share capital and reserves that
are managed as capital. The gearing ratio at the end of the reporting periods was as follows:
` Lakhs
Particulars 31.03.2017 31.03.2016
Total Debt 254,686 240,960
Less : Cash and cash equivalent 1,427 1,835
Net debt 253,259 239,125
Total equity 112,224 106,151
Net debt to equity ratio 2.26 2.25
36. Disclosure as per Ind AS 37 on ‘Provisions, Contingent Liabilities and Contingent Assets’
Contingent Liability
a) Arbitration/Civil court cases against the company in respect of capital works:
Some contractors for supply and installation of equipment and execution of works at our project have made claims
on the Company for ` 10120.70 Lakh (previous year ` 9061.51 Lakh) seeking revision of L2 rate for supply contract
and erection contract, non-imposition of LD, payment of over stay compensation, compensation for the extended
period of work, idle charges etc. These claims are being contested by the company as being not admissible in terms
of the provisions of the respective contracts. The company is pursuing various options under the dispute resolution
mechanism available in the contracts for settlement of these claims.
b) Disputed Income Tax/Sales Tax/ Excise Matters:
Disputed Income Tax demand for the assessment year 2012-13 amounting to ` 442.59 Lakh (previous year ` 399.76
Lakh which includes interest of ` 42.83 lakhs which was not considered in the last year) is pending in appeal before
Commissioner of Income Tax-Appeals , New Delhi. Disputed entry tax demand amounting to ` 1262.44 Lakh (previous
year ` 1400.56 Lakh) in respect of interest and penalty on differential Entry Tax on purchase of LDO and Steel pertaining
to FY 2007-08, 2008-09, 2009-10, 2010-11 & 2011-12 is pending before different authorities of Commercial Tax and
electricity duty demand amount to ` 1867.83 Lakh (previous year ` 2839.87 Lakh ) is pending before Patna High Court.”
c) Debt Recovery Case in respect of Capital Works:
A Debts Recovery case was filed by SBI, Chennai originally against M/s G.E.T.Power Ltd (KBUNL Contractor for execution
of works in stage-II 2X195 MW) in 2015 for recovery of its loan amount from M/s G.E.T.Power Ltd, Chennai as the loan
became an NPA. But KBUNL has been dragged on as Garnishee / 2nd Repondent in an I A filed by SBI in February, 2017
before the DRT-II, Chennai seeking a Garnishee Order for payment of ` 1,170 Lakh by KBUNL to SBI from the receivables
due to M/s G.E.T.Power Ltd under any contract between G.E.T.Power Ltd and KBUNL.
d) Others:
Other contingent liabilities amount to ` 69.81 Lakh (previous year ` 25.91 Lakh) relating to Industrial Dispute and
Labour Court cases .
163
A Maharatna Company
36.A. Capital & Other Commitments:-

Estimated amount of contracts remaining to be executed on Capital Works account and not provided for as at
31.03.2017 is ` 65356.81 Lakh (Previous year ` 73066.88 Lakhs)
37. Sensitivity of estimates on provisions
The assumptions made for provisions relating to current period are consistent with those in the earlier years. The
assumptions and estimates used for recognition of such provisions are qualitative in nature and their likelihood could
alter in next financial year. It is impracticable for the company to compute the possible effect of assumptions and
estimates made in recognizing these provisions.
38. Recent accounting pronouncements
In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments)
Rules, 2017, notifying amendments to Ind AS 7, ‘Statement of cash flows’. These amendments are in accordance with
the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ‘Statement of cash flows’.
The amendments are applicable to the company from April 1, 2017. The amendment to Ind AS 7 requires the entities
to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing
activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation
between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet
the disclosure requirement. The company is evaluating the requirements of the amendment and the effect on the
financial statements is being evaluated.
39. Certain contracts of the company for construction of power plants with vendors awarded through ICB (International
competitive bidding) which are denominated in third currency (i.e. a currency which is not the functional currency
of any of the parties to the contract) are falling under the purview of guidance provided as per Ind AS 109, ‘Financial
instruments’ on derivatives and embedded derivatives. NTPC Limited (Promoter Company) has sought opinion from the
Expert Advisory Committee (EAC) constituted by Institute of Chartered Accountants of India on the above matter. On
receipt of opinion / clarification from EAC, company will account for such contracts.
40. Disclosure as required by Schedule III of the Companies Act, 2013:
The company does not maintain cash book since it does not have any dealing in cash transactions.
Therefore, the company neither held nor transacted in Specified Bank Notes (SBN) during the period 08/11/2016 to
30/12/2016.
41. Disclosure as per Ind AS 2
` Lakhs
2016-17 2015-16
Value of Component Spares consumed 1039.10 1130.71

Place: Patna
Date: 18th May 2017
Sunil Kumar Gupta
Partner
Place: New Delhi
Date: 19th May 2017
164
A Maharatna Company
INDEPENDENT AUDITORS’ REPORT

This report supersedes our earlier report dated 19.05.2017 Those Standards require that we comply with ethical
in line with the CAG comments. requirements and plan and perform the audit to obtain
To reasonable assurance about whether the Ind AS financial
The Members of KANTI BIJLEE UTPADAN NIGAM LIMITED statements are free from material misstatement.
REPORT ON THE IND AS FINANCIAL STATEMENTS An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the Ind
We have audited the accompanying Ind AS financial
statements of KANTI BIJLEE UTPADAN NIGAM LIMITED, AS financial statements. The procedures selected depend
which comprise the Balance Sheet as at March 31, 2017 on the auditor’s judgment, including the assessment of
and the Statement of Profit and Loss (including other the risks of material misstatement of the Ind AS financial
comprehensive income) the statement of cash flows and statements, whether due to fraud or error. In making those
the statement of changes in equity for the year then ended risk assessments, the auditor considers internal control
and a summary of the significant accounting policies and relevant to the Company’s preparation and fair presentation
other explanatory information (herein after referred to as “ of the Ind AS financial statements in order to design audit
Ind AS financial statements”). procedures that are appropriate in the circumstances, but
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL not for the purpose of expressing an opinion on whether
STATEMENTS the Company has in place an adequate internal financial
controls system over financial reporting and the operating
The management and Board of Directors of the Company
effectiveness of such controls. An audit also includes
are responsible for the matters stated in Section 134(5)
of the Companies Act, 2013 (‘the act’) with respect to evaluating the appropriateness of accounting policies used
the preparation of these Ind AS financial statements that and the reasonableness of the accounting estimates made
give a true and fair view of the financial position, financial by Company’s management and Board of Directors, as well
performance including other comprehensive income as evaluating the overall presentation of the Ind AS financial
and cash flows and changes in equity of the Company statements.
in accordance with the accounting principles generally We believe that the audit evidence we have obtained is
accepted in India, including the Indian Accounting sufficient and appropriate to provide a basis for our audit
Standards (Ind AS) specified under Section 133 of the Act, opinion on the Ind AS financial statements.
read with relevant rules issued thereunder.
OPINION
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of In our opinion and to the best of our information and
the Act for safeguarding the assets of the Company and for according to the explanations given to us, the aforesaid
preventing and detecting frauds and other irregularities; Ind AS financial statements give the information required
selection and application of appropriate accounting by the Act in the manner so required and give a true and
policies; making judgments and estimates that are reasonable fair view in conformity with the accounting principles
and prudent; design, implementation and maintenance generally accepted in India including the Ind AS, of the
of adequate internal financial controls, that are operating financial position of the Company as at 31st March 2017 and
effectively for ensuring the accuracy and completeness of its financial performance including other comprehensive
the accounting records, relevant to the preparation and income, its cash flows and the changes in equity for the
presentation of the Ind AS financial statements that give a year ended on that date.
true and fair view and are free from material misstatement,
whether due to fraud or error. Emphasis of Matter
AUDITORS’ RESPONSIBILITY We draw attention to the following matters in the Notes to
the financial statements:
Our responsibility is to express an opinion on these Ind AS
financial statements based on our audit. An amount of ` 25.67 Cr has been shown in Note No. 16
We have taken into account the provisions of the Act, - Trade payables, pertaining to compensation payable to
the accounting and auditing standards and matters which coal companies against short lifting of coal as per the Fuel
are required to be included in the audit report under the Supply Agreement signed with the coal companies (ECL &
provisions of the Act and the Rules made thereunder. CCL) . The same has been debited to Coal inventory value.
We conducted our audit in accordance with the Standards Consequently it gets reflected in consumption and becomes
on Auditing specified under Section 143(10) of the Act. part of sales as variable charges.
165
A Maharatna Company
REPORT ON OTHER LEGAL AND REGULATORY f. With respect to the adequacy of the internal
REQUIREMENTS financial controls over financial reporting of the
1. As required by the Companies (Auditor’s Report) Company and the operating effectiveness of such
Order, 2016 (“the Order”), as amended, issued by controls, refer to our separate Report in “Annexure
the Government of India in terms of sub-section (11) 3”.
of section 143 of the Act, and on the basis of such g. With respect to the other matters to be included in
checks of the books and records of the Company the Auditor’s Report in accordance with Rule 11 of
as we considered appropriate and according to the the Companies (Audit and Auditors) Rules, 2014, in
information and explanations given to us, we give in our opinion and to the best of our information and
the “Annexure 1” a statement on the matters specified according to the explanations given to us:
in paragraphs 3 and 4 of the said Order. i. The Company has disclosed the impact of
2. We are enclosing our report in terms of Section 143 (5) pending litigations on its financial position in
of the Act, on the basis of such checks of the books and its Standalone Ind AS financial statements.
records of the Company as we considered appropriate Refer Note 36 to the financial statements.
and according to the information and explanations ii. The Company did not have any long-term
given to us, in the “Annexure 2” on the directions and contracts including derivative contracts for
sub-directions issued by The Comptroller and Auditor which there were any material foreseeable
General of India. losses.
3. As required by Section 143(3) of the Act, we report iii. There were no amounts which were required
that: to be transferred to the Investor Education
a. we have sought and obtained all the information and Protection Fund by the Company.
and explanations which to the best of our iv. The Company has provided requisite
knowledge and belief were necessary for the disclosures in its Ind AS financial statements
purpose of our audit; as to holdings as well as dealings in Specified
b. in our opinion proper books of account as Bank Notes during the period from 8
required by law have been kept by the Company November, 2016 to 30 December, 2016 and
so far as appears from our examination of those these are in accordance with the books of
books; accounts maintained by the Company. Refer
c. the balance sheet, the statement of profit and loss, Note 40 to the Ind AS financial statements.
the statement of cash flows and the statement of
changes in equity dealt with by this Report are in
agreement with the books of account;
d. in our opinion, the aforesaid Ind AS financial For M/s Goel Mintri & Associates
statements comply with the applicable Accounting Chartered Accountants
Standards specified under Section 133 of the Act, Firm Reg. No.: 013211N
relevant rule issued thereunder;
e. Being a Government Company, pursuant to
the Notification No. GSR 463(E) dated 5th June (Sunil Kumar Gupta)
2015 issued by Ministry of Corporate Affairs, Partner
Government of India, provisions of sub-section (2) M. NO. : 501430
of Section 164 of the Companies Act, 2013, are not Place: New Delhi
applicable to the Company. Date: 6th July, 2017
166
A Maharatna Company
Annexure-I
“ANNEXURE 1” TO THE INDEPENDENT AUDITORS’ REPORT
Referred to in paragraph 1 under the heading ‘Report on (b) There is a regular programme of physical
Other Legal & Regulatory Requirement’ of our report of even verification of all fixed assets over a period of two
date to the Ind AS financial statements of the Company for years which, in our opinion, is reasonable having
the year ended March 31, 2017: regard to the size of the Company and the nature
of its assets. No material discrepancies were
(i) (a) The Company has generally maintained proper noticed on such verification.
records showing full particulars including
(c) The title deeds of all the immovable properties
quantitative details and situation of fixed assets. are held in the name of the Company except as
follows:-
Description of Asset Area in acres Gross block as on Remarks (If Any)

31.03.2017(` In lakhs)
Land Freehold 22.81 1162.93 The Company is taking appropriate
steps for completion of legal
formalities
(ii) The management has conducted the physical (vi) We have broadly reviewed the accounts and records
verification of inventory at reasonable intervals. No maintained by the Company pursuant to the Rules
material discrepancies were noticed on such physical made by the Central Government for the maintenance
verification. of cost records under sub-section (1) of Section 148
(iii) The Company has not granted any loans, secured of the Companies Act, 2013 read with Companies
or unsecured to companies, firms, Limited Liability (Cost Records & Audit) Rules, 2014 and we are of the
partnerships or other parties covered in the Register opinion that prima facie the prescribed accounts and
maintained under section 189 of the Act. In view of records have been made and maintained. We have not,
the above, the clauses (iii)(a), (iii)(b) and (iii)(c) of the however, made detailed examination of the records
Order are not applicable. with a view to determine whether they are accurate
and complete.
(iv) The Company has not granted any loans or given any
guarantee and security covered under Section 185 and (vii) (a) Undisputed statutory dues including provident
186 of the Companies Act, 2013. In respect of investment fund, income tax, sales-tax, wealth tax, service
in the Subsidiary and Joint Venture Companies, the tax, custom duty, excise duty, value added tax,
Company has complied with the provisions of Section cess and other statutory dues have generally
185 and 186 of the Companies Act, 2013. been regularly deposited with the appropriate
authorities and there are no undisputed dues
(v) The Company has not accepted any deposits from the outstanding as on 31st March 2017 for a period of
public and hence the directives issued by the Reserve more than six months from the date they became
Bank of India and the provisions of Sections 73 to 76 payable. We have been informed that employees’
or any other relevant provisions of the Act and the state insurance is not applicable to the Company.
Companies (Acceptance of Deposit) Rules, 2015 with
regard to the deposits accepted from the public are (b) The disputed statutory dues aggregating to
not applicable. ` 3572.85 lakhs that have not been deposited on
account of matters pending before appropriate
authorities are detailed below:
167
A Maharatna Company
Sl. Name of Statute Nature of Forum where the ` (lakhs)

No dues dispute is pending
1. Income tax Act,1961 Income tax CIT-Appeals 442.59
2. The Bihar Tax on Entry of Goods into Local Areas Entry Tax Commissioner 13.96
for Consumption Use or Sale therein Act,1993 Commercial Tax ,Patna
3. The Bihar Tax on Entry of Goods into Local Areas Entry Tax Commercial Tax Tribunal, 15.52
for Consumption Use or Sale therein Act,1993 Patna
4. The Bihar Tax on Entry of Goods into Local Areas Entry Tax Joint Commissioner 1232.95
for Consumption Use or Sale therein Act,1993 Appeal, Muzaffarpur
5. Bihar Electricity Duty Act High High Court 1867.83
Court,Patna
Total 3572.85
(viii)
In our opinion and according to the information applicable. Details of the transactions with the related
and explanations given to us, the Company has not parties have been disclosed in the financial statements
defaulted in the repayment of dues to a financial as required by the applicable accounting standards.
institution, banks.
(xiv) The Company has not made any preferential allotment
(ix) Based upon the audit procedures performed and the or private placement of shares or fully or partly
information and explanations given by the management, convertible debentures during the year under review.
the Company has not raised any money by way of initial Accordingly, provisions of clause 3 (xiv) of the Order
public offer or further public offer. According to the are not applicable to the Company.
information and explanations given to us, the money
(xv) The Company has not entered into any non-cash
raised by the Company by way of term loans have been
transactions with the directors or persons connected
applied for the purpose for which they were obtained.
with them as covered under Section 192 of the
(x) Based upon the audit procedures performed and the Companies Act, 2013.
information and explanations given by the management,
(xvi) According to information and explanation given to
we report that no fraud by the Company or on the
us, the Company is not required to be registered u/s
company by its officers or employees has been noticed
45-IA of Reserve Bank of India Act, 1934. Accordingly,
or reported during the year.
provision of clause 3(xvi) of the Order is not applicable
(xi) As per notification no. GSR 463(E) dated 5th June to the Company.
2015 issued by the Ministry of Corporate Affairs,
Government of India, Section 197 is not applicable to
the Government Companies. Accordingly, provisions For M/s Goel Mintri & Associates
of clause 3 (xi) of the Order are not applicable to the Chartered Accountants
Company. Firm Reg. No.: 013211N
(xii) The provisions of clause 3 (xii) of the Order, for Nidhi
Company, are not applicable to the Company. (Sunil Kumar Gupta)
(xiii) The Company has complied with the provisions of Partner
Section 177 and 188 of the Companies Act, 2013 M. NO. : 501430
w.r.t. transactions with the related parties, wherever Place: New Delhi
168
A Maharatna Company
Annexure-II
“ANNEXURE 2” TO THE INDEPENDENT AUDITORS’ REPORT

Referred to in our report of even date to the members of KANTI BIJLEE UTPADAN NIGAM LIMITED on the accounts for the
year ended 31st March 2017
Sl. Directions u/s 143(5) of the Companies Auditor’s reply on action taken on the Impact on financial
No Act, 2013 directions statement
1. Whether the Company has clear title/lease The Company is having clear title/lease NIL
deeds for freehold and leasehold land deeds for entire freehold and leasehold
respectively? If not, please state the area of land excepting 22.81 acres of freehold land
the freehold and leasehold land for which valuing `11.63 Cr. The company has taken
title/ lease deeds are not available. appropriate steps for getting clear title for
such freehold land.
2. Whether there are any cases of waiver/write According to information and explanations NIL
off of debts/loans/interest etc., if yes, the given to us, there are no cases of waiver/
reasons thereof and the amount involved. write off of debts/ loans/interest etc.
3. Whether proper records are maintained Proper records are maintained for NIL
for inventories lying with third parties & inventories lying with third parties and also
assets received as gift from Govt. or other for assets received as gift from Govt. or
authorities? other authorities.
For M/s Goel Mintri & Associates

(Sunil Kumar Gupta)

Partner
M. NO. : 501430
Place: New Delhi
Annexure - III
ANNEXURE 3 TO THE INDEPENDENT AUDITORS’ REPORT OF EVEN DATE ON THE FINANCIAL

STATEMENTS OF KANTI BIJLEE UTPADAN NIGAM LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the
Act”)
We have audited the internal financial controls over financial were operating effectively for ensuring the orderly and
reporting of KANTI BIJLEE UTPADAN NIGAM LIMITED, (“the efficient conduct of its business, including adherence
Company”) as of March 31, 2017 in conjunction with our to company’s policies, the safeguarding of its assets,
audit of the Ind AS financial statements of the Company for the prevention and detection of frauds and errors, the
the year ended on that date. accuracy and completeness of the accounting records, and
Management’s Responsibility for Internal Financial Controls the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
The Company’s management is responsible for establishing
and maintaining internal financial controls based on the Auditors’ Responsibility
internal control over financial reporting criteria established Our responsibility is to express an opinion on the Company’s
by the Company considering the essential components of internal financial controls over financial reporting based on
Internal control stated in the Guidance Note on Audit of our audit. We conducted our audit in accordance with the
Internal Financial Controls over Financial Reporting issued Guidance Note on Audit of Internal Financial Controls Over
by the Institute of Chartered Accountants of India. These Financial Reporting (the “Guidance Note”) and the Standards
responsibilities include the design, implementation and on Auditing, issued by ICAI and deemed to be prescribed
maintenance of adequate internal financial controls that
169
A Maharatna Company
under section 143(10) of the Companies Act, 2013, to the being made only in accordance with authorizations of
extent applicable to an audit of internal financial controls, management and directors of the company; and (3) provide
both applicable to an audit of Internal Financial Controls reasonable assurance regarding prevention or timely
and, both issued by the Institute of Chartered Accountants detection of unauthorized acquisition, use, or disposition
of India. Those Standards and the Guidance Note require of the company’s assets that could have a material effect on
that we comply with ethical requirements and plan and the financial statements.
perform the audit to obtain reasonable assurance about Inherent Limitations of Internal Financial Controls over
whether adequate internal financial controls over financial Financial Reporting
reporting was established and maintained and if such
Because of the inherent limitations of internal financial
controls operated effectively in all material respects.
controls over financial reporting, including the possibility
Our audit involves performing procedures to obtain audit of collusion or improper management override of controls,
evidence about the adequacy of the internal financial material misstatements due to error or fraud may occur
controls system over financial reporting and their operating and not be detected. Also, projections of any evaluation
effectiveness. Our audit of internal financial controls over of the internal financial controls over financial reporting
financial reporting included obtaining an understanding of to future periods are subject to the risk that the internal
internal financial controls over financial reporting, assessing financial control over financial reporting may become
the risk that a material weakness exists, and testing and inadequate because of changes in conditions, or that the
evaluating the design and operating effectiveness of degree of compliance with the policies or procedures may
internal control based on the assessed risk. The procedures deteriorate.
selected depend on the auditor’s judgment, including the
Opinion
assessment of the risks of material misstatement of the Ind
AS financial statements, whether due to fraud or error. In our opinion, the Company has, in all material respects,
an adequate internal financial controls system over financial
We believe that the audit evidence we have obtained is
reporting and such internal financial controls over financial
sufficient and appropriate to provide a basis for our audit
reporting were operating effectively as at March 31, 2017,
opinion on the Company’s internal financial controls system
based on the internal control over financial reporting criteria
over financial reporting.
established by the Company considering the essential
Meaning of Internal Financial Controls over Financial components of internal control stated in the Guidance
Reporting Note on Audit of Internal Financial Controls Over Financial
A company’s internal financial control over financial reporting Reporting issued by the Institute of Chartered Accountants
is a process designed to provide reasonable assurance of India.
regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in
accordance with generally accepted accounting principles.
A company’s internal financial control over financial
reporting includes those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and (Sunil Kumar Gupta)
dispositions of the assets of the company; (2) provide Partner
reasonable assurance that transactions are recorded as M. NO. : 501430
necessary to permit preparation of financial statements in Place: New Delhi
accordance with generally accepted accounting principles, Date: 6th July, 2017
and that receipts and expenditures of the company are
170
A Maharatna Company
COMPLIANCE CERTIFICATE
We have conducted the audit of accounts of Kanti Bijlee Utpadan Nigam Ltd. for the year ended 31st March 2017 in
accordance with the directions issued by C&AG of India under section 143(5) of the Companies Act, 2013 and certify that
we have complied with all the directions issued to us.

(Sunil Kumar Gupta)

Partner
M. NO. : 501430
Place: New Delhi
171
A Maharatna Company

143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF KANTI BIJLEE
UTPADAN NIGAM LIMITED FOR THE YEAR ENDED 31 MARCH 2017
The preparation of financial statements of Kanti Bijlee Utpadan Nigam Limited for the year ended 31 March 2017 in
accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of
the management of the company. The Statutory Auditors appointed by the Comptroller and Auditor General of India under
Section 139(5) of the Act are responsible for expressing opinion on the financial statements under Section 143 of the Act
based on independent audit in accordance with the standards on auditing prescribed under Section 143(10) of the Act.
This is stated to have been done by them vide their revised Audit Report dated 06 July 2017 which supersedes their earlier
Audit Report dated 19 May 2017.
(a) of the Act of the financial statements of Kanti Bijlee Utpadan Nigam Limited for the year ended 31 March 2017. This
of the accounting records. On the basis of my audit nothing significant has come to my knowledge which would give rise to
any comment upon or supplement to Statutory Auditors’ Report.

(Indu Agrawal)
Ex-officio Member, Audit Board, Ranchi
Place: Ranchi
172
A Maharatna Company
BHARTIYA RAIL BIJLEE COMPANY LIMITED INFORMATION PURSUANT TO STATUTORY AND OTHER
REQUIREMENTS
DIRECTORS’ REPORT
Information required to be furnished as per the Companies
Dear Members, Act, 2013 and other regulations are as under:
Your Directors are pleased to present 10th Annual Report (1)
CONSERVATION OF ENERGY, TECHNOLOGY
on the business and operations of the Company along with
ABSORPTION, FOREIGN EXCHANGE EARNING &
Audited Financial Statements and Auditors’ Report thereon
OUTGO
for year ended on 31st March 2017.
(i) Your Company has installed following equipments
PERFORMANCE OF THE COMPANY for pollution control & conservation of energy:
Your Company is setting up 1000 MW (4X250 MW) Thermal Electrostatic Precipitator, Chimney, Cooling
Power Project at Nabinagar in Aurangabad district of Towers, Ash handling equipments, Ash Dyke, Ash
Bihar to meet the traction and non-traction electric power
water recirculation system, Effluent treatment
requirement of Railways.
plant, Dust extraction & suppression system, fire
Unit#1 was declared commercial on 15.01.2017. detection system, DM plant waste treatment
Construction Activities under progress: system, Sewerage treatment plant & disposal,
Unit#2 commissioned on 03.04.2017. Commercial operation Environmental Lab equipment etc.
of Unit#2 is scheduled in Aug’ 17, trial operation of Unit#3 (ii) The steps taken by the company for utilizing
and Boiler light up of Unit#4 targeted in Mar’ 18. Construction alternate sources of energy: Provision of Solar
activities of Units, CHP, Rail corridor, AHP and MUW are lights in plants as well as Project Affected Villages
going on in full swing. Land acquired in year 2016-17 is (iii) The capital investment on energy conservation
55.27 Acres. Total land acquired for the plant is 1475.92 equipments: Approx. 350 Crore INR has been
acres, out of 1522.50 acres required for the project.
earmarked for the above mentioned equipments.
FINANCIAL REVIEW During the period under review, there was no
The financial highlights of the Company for the year ended earning in the foreign exchange. The outgo in
on 31st March 2016 and 31st March 2017 are as under:- foreign exchange was INR 35,96,76,561 (USD
(Amount in ` Lakhs) 1,01,801 & Euro 50,06,882).
(2) The following information is provided in the Corporate
Balance Sheet Items as at 31.03.2017 31.03.2016 Governance Report which forms part of the Annual
Paid-up Share Capital 1,58,461.39 1,58,461.39 Report as Annex-II
Other equity 29,238.02 5,243.11 a. Number of Meetings of the Board held during the
year and attendance of Directors in the Board
Non-current liabilities 4,51,269.46 3,97,389.16 Meeting.
Current liabilities 72,648.93 66,849.24 b. Constitution of the Audit Committee, number of
Non-current assets 6,92,091.86 6,13,302.67 Meetings held during the year and attendance of
the Members in the Audit Committee.
Current assets 20,185.00 15,147.14
c. Constitution of Corporate Social Responsibility
Regulatory deferral account 659.06 506.91 Committee, number of Meetings held during the
credit balances year, if any and attendance of Members in the
Meeting.
Items from Statement of 31.03.2017 31.03.2016 d. Constitution of Nomination and Remuneration
Profit and Loss for the year Committee, number of Meetings held during the
ended year, if any and attendance of Members in the
Total Revenue 8,879.38 385.52 Meeting.
Total Expenses 7,761.93 2.58 (3) Corporate Social Responsibility
The average Net Profit/ (Loss) of the Company made
Profit/ (Loss) before Tax 965.29 (2.55)
during the three immediately preceding financial years
Total Tax Expenses 199.38 - worked out to ` (4,42,044), hence, no amount was
Profit/ (Loss) for the year 765.91 (2.55) required to be spent on CSR during the financial year
2016-17.
Subsidiary Company - Bhartiya Rail Bijlee Company Limited
173
A Maharatna Company
(4) During the year the Company undertook the activities The Cost Audit Report for the financial year ended
under Resettlement & Rehabilitation Plan as a March 31, 2017 shall be filed within the prescribed time
responsible corporate citizen in and around plant, period under the Companies (Cost Records & Audit)
details of which are covered under the Management Rules, 2014.
Discussion and Analysis Report attached as Annex-I to
(9) Your Company, being subsidiary of NTPC, is covered
this Report.
under the Enterprise Risk Framework established
(5) Statutory Auditors by NTPC (Holding Co.). Details about risks with the
The Comptroller & Auditor General of India through Company are covered in the Management Discussion
letter dated 12.07.2016 had appointed M/s N.C. & Analysis Report which forms part of this Report and
Aggarwal & Co., Chartered Accountants as Statutory placed at Annex-I.
Auditors of the Company for the financial year 2016-
(10) Extract of Annual Return
17. The Statutory Auditors of the Company for the
financial year 2017-18 are yet to be appointed by the Extract of Annual Return of the Company is annexed
Comptroller & Auditor General of India. herewith as Annex-III to this Report.
(6) Management comments on Statutory Auditors’ Report (11) Performance Evaluation of the Directors and the Board
The Statutory Auditors of the Company have given an Ministry of Corporate Affairs (MCA), through
unqualified report on the accounts of the Company for General Circular dated 5th June, 2015, has exempted
the financial year 2016-17. Government Companies from the provisions of Section
The Statutory Auditors have drawn emphasis of matter, 178 (2) which requires performance evaluation of
through its Report dated 21.07.2017, which is as under: every director by the Nomination & Remuneration
Committee. The aforesaid circular of MCA further
(i) On transition to IND AS, it was observed that
certain liabilities of contractors/ other vendors exempted listed Govt. Companies from provisions
were classified as non-current instead of current in of Section 134 (3) (p) which requires mentioning the
the financial statements. The same has now been manner of formal evaluation of its own performance
reclassified as short term, refer note 43(b) to the by the Board and that of its Committees and Individual
financial statements. Director in Board’s Report, if directors are evaluated by
the Ministry or Department of the Central Government
(ii) The Company has not yet appointed Whole time
Company Secretary, as required under Section which is administratively in charge of the company, or,
203(1) of the Companies Act, 2013. However, as the case may be, the State Government as per its
the management has assured to have full time own evaluation methodology.
Company Secretary in the current financial year. Now, MCA, through Notification dated 05.07.2017,
(7) Review of accounts by Comptroller & Auditor General has amended Schedule IV to the Companies Act, 2013
of India with respect to performance evaluation of directors of
The Comptroller & Auditor General of India (C&AG), the Government Companies that in case of matters of
through letter dated 31.07.2017, has given ‘Nil’ performance evaluation are specified by the concerned
comments on the financial statements of your Company Ministries or Departments of the Central Government
for the year ended on 31.03.2017. As advised by the or as the case may be, the State Governments and such
C&AG, the contents of letter dated 31.07.2017 are requirements are complied with by the Government
being placed with the report of the Statutory Auditors companies, such provisions of Schedule IV are exempt
elsewhere in the Annual Report. for the Government Companies.
(8) Cost Audit As per the Articles of Association of KBUNL, all the
As prescribed under the Companies (Cost Records and Directors are nominated by NTPC and Ministry of
Audit) Rules, 2014, the Cost Accounting records shall Railways (MOR). The Directors nominated by NTPC
be maintained by the Company as the Company has or MOR are being evaluated under a well laid down
declared one of its Units commercial w.e.f. 15.01.2017. procedure for evaluation of Functional Directors & CMD
M/s A.K. Singh & Co., Cost Accountants, had been as well as of Government Directors by Administrative/
appointed as Cost Auditors under Section 148(3) of respective Ministry/ Department. Also, the performance
the Companies Act, 2013 read with Rule 14 of the of the Board of the Government Companies is evaluated
Companies (Audit & Auditors) Rules, 2014 for the during the performance evaluation of the MOU signed
financial year 2016-17. with the Holding Company i.e. NTPC Limited.
174
A Maharatna Company
(12) Secretarial Audit

The Board has appointed M/s Agarwal S. & Associates, Company Secretaries, to conduct Secretarial Audit for the
financial year 2016-17. The Secretarial Audit Report for the financial year ended March 31, 2017 is annexed herewith
marked as Annex- IV to this Report.
The Managements’ replies on the observations of Secretarial Audit are as under:
Observations Management’s Replies

Compliance under Section Bhartiya Rail Bijlee Company Limited (BRBCL) is a subsidiary of NTPC Limited, a Government
149(4) read with Rule 4 of Company, as such, BRBCL is a Government Company. Being a government company, its
Companies (Appointment Independent Directors are required to be appointed by the Government of India.
and Qualification of As per the Articles of Association of BRBCL, all the Directors are nominated by NTPC and
Directors) Rules, 2014 of Ministry of Railways. NTPC (Holding Company) has requested the Government to either
the Act and Clause 3.1.4 permit NTPC or to appoint requisite number of Independent Directors on the Board of
of the DPE Guidelines on BRBCL.
Corporate Governance with
However, the Ministry of Corporate Affairs, through notification dated 05.07.2017, has
respect to the appointment
exempted unlisted public company, inter-alia, including a joint venture company from
of Independent Directors
appointing Independent Directors on its Board.
on the Board of Company
& consequential non- Further, the Ministry of Corporate Affairs, through notification dated 05.07.2017, has also
compliances thereof. exempted the Government Companies from evaluation of directors in case the requirements
Compliance under Section of evaluation of directors are specified by the concerned Ministry or Department.
149(8) read with Clause VIII As per MCA’s notification dated 05.07.2017, KBUNL is not required to appoint Independent
of Schedule IV of the Act Directors on its Board, therefore, there is no requirement of performance evaluation of
with respect to performance director.
In terms of Section 203 read The Company is in the process of appointing Company Secretary.
with Rule 8 of the Companies
(Appointment and
Remuneration of Managerial
Personnel) Rules, 2014, the
Company is required to
appoint a Company Secretary.
(13) Particulars of contracts or arrangements with related The details of disputed statutory dues pending before
parties appropriate authorities is detailed in Annexure to
During the period under review, all transactions with Independent Auditors’ Report.
related parties were at arm’s length and suitable (15) Adequacy of internal financial controls with reference
disclosure has been provided in annual accounts. to the financial reporting
Approval has been taken from the Audit Committee The Company has in place adequate internal financial
where the transaction with related party falls under the controls with reference to financial reporting. During
purview of the Companies Act, 2013. All related party the year, such controls were tested and no reportable
transactions were in the ordinary course of business material weakness in the design or operation were
and were negotiated on an arm’s length basis. They observed.
were intended to further the Company’s interests. (16) Particulars of Employees
Accordingly, the disclosure of Related Party Transactions As per provisions of section 197(12) of the Companies
as required under Section 134(3)(h) of the Companies Act, 2013 read with the Rule 5 of the Companies
Act, 2013 in Form AOC-2 is not applicable. (Appointment and Remuneration of Managerial
(14)
Significant and material orders passed by the Personnel) Rules, 2014, every listed company is
regulators or courts or tribunals impacting the going required to disclose the ratio of the remuneration of
concern status and company’s operations in future NIL. each director to the median employee’s remuneration
Contingent Liabilities are detailed in Note–40 of Notes and details of employees receiving remuneration
to Accounts to Financial Statements for the FY 2016-17. exceeding limits as prescribed from time to time in the
Directors’ Report.
175
A Maharatna Company
However, as per notification dated 5th June, 2015 during the year 2016-17 was ` 96,07,664.50* which
issued by the Ministry of Corporate Affairs, Government was 10.79% of total procurement against target of 20%
Companies are exempted from complying with of total procurement made by the Company.
provisions of Section 197 of the Companies Act, 2013. *It excludes Primary fuel, Secondary fuel, Steel &
Therefore, such particulars have not been included as Cement, the Project procurement including R&M
part of Directors’ Report. packages and procurement from OEM, OES & PAC
(17) Issue of Shares in the Financial Year sources.
During the year under review, there was no change in The particulars of annexures forming part of this report
the paid-up capital of the Company. As on 31st March are as under:
2016 and 31st March 2017, the paid-up share capital of
Particulars Annexure
the Company was ` 1,58,46,13,85,00/-.
Management Discussion & Analysis I
(18) No disclosure or reporting is required in respect of the
following items as there were no transactions on these Report on Corporate Governance II
items during the year under review Extract of Annual Return III
1. Issue of equity shares with differential rights as to Secretarial Audit Report in Form MR-3 IV
dividend, voting or otherwise. DIRECTORS’ RESPONSIBILITY STATEMENT
2. Issue of shares (including sweat equity shares) to As required under Section 134 (5) of the Companies Act,
employees of the Company under any schemes. 2013, your Directors confirm that:
(19)
Establishment of vigil mechanism/whistle blower 1. in the preparation of the annual accounts, the
policy applicable accounting standards had been followed
Your Company has established Whistle Blower Policy as along with proper explanation relating to material
required under Section 177 (9) of the Companies Act, departures;
2013 read with Rule 7 of the Companies (Meeting of 2. the Directors had selected such accounting policies
Board and its Powers) Rules, 2014. and applied them consistently and made judgments
(20) The Company has not granted any loans, given any and estimates that are reasonable and prudent so as
guarantee or made any investments under Section 186 to give a true and fair view of the state of affairs of the
of the Companies Act, 2013 during the year. company at the end of the financial year 2016-17 and
(21) The Company has not accepted any deposits during of the loss of the company for that period;
the year. 3. the Directors had taken proper and sufficient care
(22) The Company has no subsidiary or joint venture. for the maintenance of adequate accounting records
in accordance with the provisions of the Companies
(23) No Presidential Directive was issued by the Government
during the year under review.
and for preventing and detecting fraud and other
(24) The Company has not declared any dividend during the irregularities;
year.
4. the Directors had prepared the Annual Accounts on a
(25) BRBCL, being subsidiary of NTPC, is covered under the going concern basis; and
Internal Complaints Committee constituted by NTPC
5. the Directors had devised proper systems to ensure
under the provisions of Sexual Harassment of Women
at Workplace (Prevention, Prohibition and Redressal)
and that such systems were adequate and operating
Act, 2013.
effectively.
(26) Procurement from MSEs
BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
The Government of India has notified a Public
There was no change in Directors of the Company during
Procurement Policy for Micro and Small Enterprises
the year.
(MSEs), Order 2012. In terms of the said policy, the
total contract placed on and procurement made from Shri C. Sivakumar, General Manager, BRBCL was appointed
MSEs (including MSEs owned by SC/ST entrepreneurs) as the Chief Executive Officer of the Company w.e.f.
18.07.2016 in place of Shri Raj Kumar.
176
A Maharatna Company
As per the provisions of the Companies Act, 2013, Shri touching new lows which are even lower than the coal-fired
Sudhir Garg, Director shall retire by rotation at the ensuing power tariff, the landscape of the power sector is going to
Annual General Meeting and being eligible, offers himself change rapidly.
for re-appointment. INDUSTRY STRUCTURE AND DEVELOPMENTS
ACKNOWLEDGEMENT Power Sector is a key enabler for India’s economic growth.
Your Directors acknowledge with deep sense of appreciation The sector consists of generation, transmission and
for the co-operation extended by Ministry of Power and distribution utilities and is a crucial component of India’s
Ministry of Railways. infrastructure. The achievements regarding developments
and various issues/challenges faced by the Power Sector
Your Directors also convey their gratitude to the Holding have been discussed in the ensuing paragraphs.
Company i.e. NTPC Ltd., Power Finance Corporation Limited,
Snap Shot 2016-17
Rural Electrification Corporation Limited, auditors, bankers,
contractors, vendors and consultants of the Company.  Gross annual generation of the country increased by
4.72% from 1107.82 BUs in the previous year to 1160.14
We wish to place on record our appreciation for the untiring
BUs in the financial year 2016-17.
efforts and contributions by the employees at all levels to
ensure that the Company continues to grow and excel.  Generation capacity of 14209.8 MW (excluding
renewable) added during the year compared to
23976.60 MW added in the previous year.
 Land mark year for renewable energy. 14410.85 MW
Capacity added during the year.
(S.C. Pandey)  26300 Ckms of transmission lines added during the year
Place: New Delhi Chairman as compared to 28114 Ckms in the previous year.
Date: 25.08.2017 (DIN: 03142319)
 81816 MVA of transformation capacity added during
the year as against 62849 MVA in the previous year, a
Annex-1 to the Directors’ Report of BRBCL jump of 30%.
MANAGEMENT DISCUSSION AND ANALYSIS  PLF of thermal stations declined from 62.24% in financial
year 2015-16 to 59.88% in the financial year 2016-17.
ECONOMIC AND SECTOR OUTLOOK
 During the financial year 2016-17, peak power deficit
Indian economy has moved on a higher growth path. Gross and energy deficit was 2.6% and 1.1% respectively as
Domestic Product for Financial Year 2016-17 has increased against the peak power deficit and energy deficit of
by 7.1% over the previous financial year. Electricity, water 3.2% and 2.1% during financial year 2015-16. (Source:
supply gas and other utilities have registered a growth rate Central Electricity Authority)
of 7.2% at constant prices. With macro-economic stability,
Existing Installed Capacity
Indian economy is slated to grow between 7-8 percent
and electricity generation will play a key role in India’s The total installed capacity in the country as on March 31,
2017 was 326848.54 MW (including renewable) with private
development.
sector contributing 44% of the installed capacity followed
For the power sector, the two recent biggest announcements by State Sector with 32% share and Central Sector with 24%
pertain to rural electrification and solar energy. The share.
Government has reiterated its priority to achieve “100
percent village electrification” by May 1, 2018. Giving Total Capacity % share
impetus to the clean energy, the government has also (MW)
announced the second phase of solar development for 20 State 103967.28 32
GW capacity. Centre 80257.25 24
This augurs well for the entire Power Sector and would Private 142624.01 44
unleash the huge latent demand for electricity. Total* 326848.54 100
The year has been the land mark year for renewable energy. *including RES
For the first time, renewable capacity addition matched the
Source: Central Electricity Authority-Installed Capacity
convention thermal capacity addition. With solar tariffs
report
177
A Maharatna Company
During the financial year 2016-17, capacity of 14209.80 with installed capacity share of 33.12% and private sector
MW (excluding renewable) was added. With this the total contributes 35.89% of generation with installed capacity
capacity addition during the 12th plan period is 99209.47 share of 38.56%. Central Sector utilities have better
MW (excluding renewable) which is about 112.05% of the performing stations as compared to those of State utilities
planned capacity addition of 88537 MW for the Plan. and Private Sector.
Capacity Utilization and Generation Consumption
Capacity utilisation in the Indian power sector is measured In terms of per capita power consumption, India ranks
by Plant Load Factor (PLF). among the lowest in the world. The per capita consumption
Sector wise PLF (Thermal) of power in India is just 1075 units in financial year 2015-16
(in %) (provisional). (Source: Central Electricity Authority Executive
Summary March 2017).
Sector 2015-16 2016-17
Major end users of power can be broadly classified
State 56.83 54.35 into industrial, agricultural, domestic and commercial
consumers. These consumers represented approximately
Central 71.03 71.98
42%, 17%, 24% and 9%, respectively, of power consumption
Private 60.07 55.59 measured by units of electricity consumed in the year 2015-
16 (provisional). Traction & Railways and others represented
All India 62.24 59.88
about 8% of power consumption. The electricity
The overall decline in PLF was mainly due to backing down/ consumption in Industry sector and domestic sector has
shut down of units on account of low schedule from increased at a much faster pace compared to other sectors
beneficiary states (Source: Central Electricity Authority). during 2006-07 to 2015-16 with CAGR of 9.47% and 7.97%
The outlook of generation looks promising with expected respectively (Source: Ministry of Statistics and Programme
increased industrial production and Government of India’s Implementation- Energy Statistics 2017).
mission to provide 24x 7 electricity to all. Energizing the Power Sector – Key Initiatives / Reforms &
Existing Generation Regulatory Changes
The total power available in the country during the financial (a) Flexibility in utilization of domestic coal: GoI has
year 2016-17 was 1160.14 billion units as compared to allowed flexibility in utilisation of domestic coal for
1107.82 billion units during last year, registering a growth of reducing the cost of power generation. The Annual
4.72%. (generation figures pertains to monitored capacity Contracted Quantity (ACQ) of each coal linkages
by CEA) would be aggregated as consolidated ACQ for each
State/Central/Private Gencos. These Gencos now have
Sector-wise and fuel-wise break-up of generation (BUs) for
flexibility in use of such coal amongst their different
the year 2016-17 is detailed as under:
generating stations. This will facilitate power producers
Sector Thermal Hydro Nuclear Bhutan Import Total to use coal optimally in more efficient generating
stations resulting in reduction in the power purchase
Central 337.92 57.90 37.92 - 433.74
cost for Discoms.
State 299.59 51.35 - - 350.94
(b) Cross Border Electricity Trade Policy: At present,
Pvt/IPP 356.72 13.12 - - 369.84 Cross Border Trade of Electricity has been taking
Bhutan - - - 5.62 5.62
place with Bangladesh, Bhutan and Nepal under
Import bilateral Memorandum of Understanding (MoU) /
Power Trade Agreement (PTA). In order to facilitate
Total 994.23 122.37 37.92 5.62 1160.14
and promote cross border trade of electricity with
(Source: Central Electricity Authority) greater transparency, consistency and predictability
in regulatory approaches across jurisdictions and
As far as Thermal generation is concerned, based on the
minimise perception of regulatory risks, GoI has issued
monitored capacity by CEA, the generation contribution
guidelines on Cross Border Trade of Electricity. This
of central sector is 33.98% with installed capacity share
policy is likely to help in creating demand for the
of 28.32%, state sector contributes 30.13% of generation
Gencos.
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A Maharatna Company
(c) Amendment in the IEGC (4 ) Amendment to allow

th
bidding based. As per the Scheme, future allocation/
compensation on account of partial loading of the grant of linkages to power producers/ IPPs will be
units based on auction.
i. CERC has allowed Compensation due to The Scheme shall benefit the sector in terms of coal
degradation of the operational parameters like availability to all power plants in transparent and
Heat rate and auxiliary power consumption due objective manner, cheaper and affordable power,
to lower loading of the units. For this purpose, reduction of sectoral stress on account of non-
CERC has defined the technical minimum level of availability of linkages to power projects thereby
operation as 55% and has allowed compensation enhanced confidence of financial institutions on power
when unit operations are below 85% and upto sector.
55%. These compensations will be in the form
(g) Portal on weather information: Due to enhanced
of increased norms in the Heat rate and APC as
presence of Renewable Energy in the Indian power
per different factors for different ranges of unit
sector, weather information like irradiance, wind
loading, as provided in the Regulations.
speed etc. have become very important. Besides,
ii. It has also been provided that a unit can go under whether information is also very important for load
Reserve Shut Down (RSD) in case the schedules forecasting. During the current financial year (FY 17-
are below 55%. In these cases, the Units will be 18), GoI has launched whether Portal for Power Sector
compensated for the additional oil consumption in association with POSOCO and IMD. The information
on account of higher start/stop of the units. available in the Portal regarding weather forecast shall
iii. CERC in its order dated 5th May 2017 has help State Discoms to take pro-active steps regarding
approved a detailed procedure for calculation short term and medium term management processes
of the compensation amount and process of and supply planning requirements and also for better
apportionment among the beneficiaries. planning for infrastructure availability to ensure cost
effective and reliable supply.
(d) Reduction in coal import: On account of increased
production of domestic coal, imports have fallen from Demand, Supply and Consumption Position
217.78 MT in 2014-15 to 199.88 MT in 2015-16, a decline Western, Southern & Eastern Regions met the demand almost
of 8%. The trend of fall in import of coal has continued in full with insignificant demand-supply gap both in terms
in 2016-17.This has helped the country in reducing cost of energy and peaking. Northern & North-Eastern Regions
of electricity generated in coal based power plants and experienced minor demand-supply gap in terms of energy
reduction in forex expenditure. and/or peaking, on an overall basis. The demand-supply gap
(e) UJALA: Government has identified lighting as key focus was on account of the factors other than non-availability of
area for energy efficiency. Under the Unnat Jyoti by power e.g. transmission & distribution constraints. However,
Affordable LEDs for All (UJALA), more than 24 crore there were short-term surpluses in most of the states at
LED bulbs have been distributed. This will help in a some point of time or the other depending on the season
recurring saving of ` 34.95 crore and 87 MU per day or time of the day. The surplus power was sold to deficit
in terms of cost and energy respectively. It will also states or consumers either through bilateral contracts,
help in reduction of CO2 to the extent of 70,780 ton Power Exchanges or traders. (Source : Load Generation and
per day thereby reiterating India’s commitment made Balance Report 2017-18).
at Conference of Parties (COP) 21 Summit held in Paris During the year 2016-17, total ex-bus energy availability
to reduce its energy intensity. increased by 4.1% over the previous year and the peak
(f) SHAKTI (Scheme for Harnessing and Allocating Koyala met increased by 5.7%. The energy requirement registered
(Coal) Transparently in India): During the current a growth of 2.6% during the year against the projected
financial year (FY 17-18), GoI has introduced the Scheme, growth of 9.0% and Peak demand registered a growth of
‘SHAKTI’ to make coal allocation more transparent and 4.0% against the projected growth of 7.8%.
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A Maharatna Company
The power supply position in Eastern Region and Bihar with Power Finance Corporation Limited and with Rural
during 2016-17 is as under: Electrification Limited for meeting its debt portion. The
Company has coal linkage for 4X250 MW capacity.
Particulars Year 2016-17 (Actual) Year 2017-18 (Anticipated)
Req Avail Surplus/ Req Avail Surplus/ Weakness/ Threats:
(Deficit) (Deficit) The major threat the Company is facing in acquiring parts
Energy Requirement of land. Law and order situation and project security of the
Eastern 1,27,783 1,26,868 (915 MUs) 1,50,151 1,49,871 (280 MUs) project has been also a concern for the Company.
Region (in (0.8%) (0.2%) RISKS AND CONCERN
MU)
Bihar (in 25,712 25,131 (581 MUs) 26,600 21,207 (5,393 MUs) The risk to which company is exposed and the initiatives
MU) (2.2%) (20.3%)
taken by the company to mitigate such risks are given below:
Peak Requirement The project is delayed as there is delay in the land acquisition
Eastern 18,908 18,788 (120 MW) 21,577 23,743 2,166 MW due to which contractors are demanding compensation.
Region (In (0.6%) 10%
This issue is being dealt as per provision of the contract and
MW) project implementation is being expedited to minimize the
Bihar (In 3,883 3,759 (124 MW) 4,000 3,494 (506 MW) time overrun.
MW) (3.2%) (12.7%) Hazard risks are related to natural hazards arising out of
From the above, it is evident that there have been energy accidents and natural calamities like fire, earthquake etc.
and peak shortages in the Eastern Region as well as in Bihar Operational risks are associated with systems, processes
during the year 2016-17. In the year 2017-18, there would be & people and cover areas such as succession planning,
anticipated energy shortages both in Bihar and the Eastern attrition and retention of people, operational failure or
Region. Although, from the above, it is clear that there interruption, disruption in supply chain, failure of research &
would be enough power available for peak requirement in development facilities and faulty application of information
Eastern Region during 2017-18, there would be shortage of technology and non-compliance of regulatory provisions.
506 MW of power in Bihar for peak requirements. Also, non-receipt of schedule for generation of power and
SWOT ANALYSIS non-receipt of equity in time from Railways.
Strength/ Opportunity As the Company has not come in operation phase, it is not
exposed to all such operational risks.
The Company is backed by strong promoters i.e. Ministry of
Railways and NTPC Limited. NTPC is the consultant for the INTERNAL CONTROL
Company which is having wide experience in engineering The Company has robust internal systems and processes for
and management expertise from planning to commissioning efficient conduct of business. The Company is complying
and operating power plants. Indian Railways, being a big with relevant laws and regulations. It is following delegation
transport organization, consumes about 2% of the total of powers as is being followed in NTPC Limited. The accounts
power generation of the country which is likely to go up are being prepared in accordance with the Accounting
with the current pace of electrification. Presently, the peak Standards issued by Institute of Chartered Accountants of
power requirement of IR is about 4000 MW which is being India from time to time and as per the guidelines issued
fed to the electric traction network of IR through its odd from NTPC Limited. The Company has implemented SAP in
400 traction sub stations spread across the length and all modules. It is helping the Company a lot in retrieving data
breadth of the country. Out of this requirement, Nabinagar and maintaining systematic backup.
power plant having 1000 MW capacity will cater the captive
In order to ensure that all checks and balances are in place
need of 900 MW of Indian Railways and 100 MW will be
and all internal systems are in order, regular and exhaustive
given to the Bihar Government. Thus, BRBCL has good future
internal audits are conducted by experienced firm of
prospects of dealing with the organisation like IR having
Chartered Accountants in coordination with Internal Audit
sound financial fundamentals.
Department of NTPC Limited. The Company has constituted
The Company is able to acquire major portion of land for an Audit Committee to oversee the financial performance
establishing the project.Bharat Heavy Electricals Limited is of the company. The scope of this Committee includes
the main plant contractor. The Company has tied up loan compliance with Internal Control Systems.
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A Maharatna Company
FINANCIAL DISCUSSION AND ANALYSIS monetary items recognised in the financial statements
The Company has prepared its first Financial Statements for the period ending immediately before the beginning
in accordance with Ind AS for the year ended 31 March of the first Ind AS financial reporting period as per the
2017. For periods up to and including the year ended 31 Indian GAAP.
March 2016, the Company prepared its financial statements At the end of the financial year 2016-17, the Company’s
in accordance with Indian GAAP, including accounting paid-up share capital was ` 1,58,461.39 lakh. Other
standards notified under the Companies (Accounting equity amounted to ` 29,238.02 lakh which included
Standards) Rules, 2016 (as amended). The effective date for share application money pending allotment and retained
Company’s Ind AS Opening Balance Sheet is 1 April 2015 earnings. The Company had withdrawn cumulative loan of
(the date of transition to Ind AS). ` 4,47,491.58 lakh up to the end of FY 2016-17 as against
The accounting policies set out in Note 1 have been applied ` 3,88,843.16 lakh up to FY 2015-16 from PFC and REC.
in preparing the financial statements for the year ended Borrowing costs capitalized during the year was ` 43,494.83
31 March 2017, the comparative information presented lakh. There was no default in payment of interest on loan as
in these financial statements for the year ended 31 March at the end of the year.
2016 and in the preparation of an opening Ind AS Balance In other long term liabilities, there was an amount of
Sheet at 1 April 2015 ( the Company’s date of transition). ` 3,777.88 lakh which was liability towards equipment
According to Ind AS 101, the first Ind AS Financial Statements supplier and erection vendors pending evaluation of
must use recognition and measurement principles that are performance and guarantee test results.
based on standards and interpretations that are effective The Trade payables as at 31.03.2017 is ` 2,982.57 lakh
at 31 March 2017, the date of first-time preparation of as compared to ` 6099.17 lakh as at 31.03.2016. Other
Financial Statements according to Ind AS. These accounting current liabilities (including interest accrued but not due
principles and measurement principles must be applied on borrowings, amount payable for capital expenditure,
retrospectively to the date of transition to Ind AS and deposits from contractors, payable to employees due to
for all periods presented within the first Ind AS Financial provision for pay revision) amounted to ` 56,895.73 lakh.
Statements.
The property, plant & equipment (tangible assets) amounted
Any resulting differences between carrying amounts of to ` 2,50,496.42 lakh as at 31.03.2017 as against ` 47,798.18
assets and liabilities according to Ind AS as of 1 April 2015 lakh as at 31.03.2016. The intangible assets amounted to
compared with those presented in the Indian GAAP Balance ` 3.19 lakh and ` 5.30 lakh as at 31.03.2017 and 31.03.2016
Sheet as of 31 March 2015, were recognized in equity under respectively. The depreciation transferred to Expenditure
retained earnings within the Ind AS Balance Sheet. During Construction (EDC) for the financial year 2016-17
Exemptions and exceptions availed was ` 601.30 lakh. The capital work-in-progress stood at
In the Ind AS Opening Balance Sheet as at 1 April 2015, ` 4,34,915.65 lakh and ` 5,38,944.55 lakh as at 31.03.2017
the carrying amounts of assets and liabilities from the Indian and 31.03.2016 respectively.
GAAP as at 31 March 2015 are generally recognized and The inventories stood at ` 1,393.88 lakh, trade receivables
measured according to Ind AS in effect as on 31 March 2017. at ` 5,277.98 lakh and other current assets which included
For certain individual cases, however, Ind AS 101 provides deposits with government authorities, recoverable from
for optional exemptions and mandatory exceptions to the contractors and unsecured advances amounted to
general principles of retrospective application of Ind AS. ` 9,562.96 lakh.
The Company has made use of the following exemptions The revenue from operations was ` 8,686.67 lakh and
and exceptions in preparing its Ind AS Opening Balance other income was ` 192.71 lakh. Energy sales represented
Sheet: fixed charge bill on East Central Railway (` 7,818.00 lakh),
i. The Company has elected to measure all of its property, North Bihar Distribution Company Limited (` 364.84 lakh)
plant and equipment and intangible assets at their and South Bihar Distribution Company Limited (` 503.83
previous GAAP carrying value. lakh) after Commercial Operation Date based on Declared
Capacity.
ii. The Company has elected to continue the policy
adopted for accounting for exchange differences Total expenses were ` 7,761.93 lakh, which comprised
arising from translation of long-term foreign currency expenses towards employee benefit expense, finance
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A Maharatna Company
costs, depreciation, amortization, impairment and other expense towards provident fund, pension, gratuity, post-
expenses. Total tax expenses were ` 199.38 lakh. The profit retirement medical benefits facilities and other terminal
for the year after tax was ` 765.91 lakh. benefits and ` 0.48 lakh was payable to Ministry of Railways
towards leave and other benefits.
HUMAN RESOURCE
Presently, the Company has total strength of 218 employees REHABILITATION AND RESETTLEMENT ACTIVITIES
(including 11 Executive Trainees, 10 Diploma Trainees and Your Company has taken number of steps towards
02 Assistant Chemist Trainees), all employees have been rehabilitation and resettlement like construction of
deputed from the Holding Company i.e. NTPC Limited. As a road= 3 Kms, development of community pond= 01 No.,
socially responsible and socially conscious organization, the beautification of Dih Baba Asthan in village Khaira and
Company has deployed 30 SC employees, 10 ST employees providing drinking water through tankers during summer in
and 55 OBC employees out of the total strength of 218 nearby villages.
employees deputed from NTPC.
OUTLOOK
The Company is paying Performance Related Pay to
The Company’s outlook is very bright. It will generate
its employees in order to boost their morale and also
sufficient revenue for the growth and development of the
extending the facility of retention of family anywhere in
company as well as of the nearby community at large once
India. Quarters have been hired at Dalmianagar also as
the plant becomes operational.
a Temporary Township until Permanent Township at the
site becomes ready to accommodate all the employees. CAUTIONARY STATEMENT
Further to this, various welfare measures including cultural Statements in the Management Discussion and Analysis,
activities for employees and their family members are also describing objectives, projections and estimates, are
undertaken for boosting employee’s morale. forward-looking statements and progressive, within the
Further to this, we have Executive club and Ladies club meaning of applicable security laws and regulations.
which takes care of sports and cultural activities. Actual results may vary from those expressed or implied,
depending upon economic condition, Government policies
The employee benefits expense (salaries & wages,
and other incidental/ related factors.
contribution to provident & other funds and staff welfare
expenses) was ` 853.45 lakh for the financial year 2016-
17. An amount of ` 514.74 lakh was included in employee For and on behalf of Board of Directors
benefits expense towards provident fund, pension,
gratuity, post-retirement medical benefits facilities and
other terminal benefits and ` 112.10 lakh was payable to (S.C. Pandey)
NTPC Limited towards leave and other benefits. Similarly, an Place: New Delhi Chairman
amount of ` 8.54 lakh was included in employee benefits Dated: 25.08.2017 (DIN: 03142319)
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A Maharatna Company
Annexure - II to the Directors’ Report of BRBCL and their effectiveness, and ensures that shareholders’
Report on Corporate Governance long-term interests are being served.
Corporate Governance is a set of standards which aims to i. Composition of the Board

improve the Company’s image, efficiency and effectiveness. As per the Articles of Association, the number
It is the road map, which guides and directs the Board of Directors shall not be less than 4 and more
of Directors of the Company to govern the affairs of the than 15 subject to the condition that Directors
Company in a manner most beneficial to all the shareholders, shall be nominated by each Party viz. NTPC and
creditors, government and society at large. Ministry of Railways in accordance with their
The Directors, hereby, present the Company’s Report on equity shareholdings. The respective parties shall
Corporate Governance for the financial year 2016-17. Our determine the period for which their respective
corporate structure, business, operations and disclosure nominees shall hold office.
practices have been strictly aligned to our Corporate
Also, the Chairman of the Board shall always be a
Governance Philosophy.
Director nominated by NTPC.
1. Company’s Philosophy on Code of Governance
ii. Independent Directors
Corporate Governance continues to be a strong focus
As per the Companies Act, 2013 and the DPE
area for the Bhartiya Rail Bijlee Company Limited. Our
philosophy on Corporate Governance emanates from Guidelines on Corporate Governance for
resolute commitment to protect stakeholder rights CPSEs, the company was required to appoint
and interests, proactively manage risks and create two Independent Directors on the Board. The
long-term wealth and value. It permeates in all aspects Promoter Company had taken up the matter with
of working-workplace management, marketplace Department of Public Enterprises, to either appoint
responsibility, community engagement and business Independent Directors or allow NTPC and Ministry
decisions. Corporate Governance can be summarized of Railways to appoint Independent Directors.
in the following words: However, Ministry of Corporate Affairs, through
Notification dated 05.07.2017, has exempted the
“Enhancement of stakeholder’s value through pursuit of
public unlisted Joint Venture Companies from
excellence, efficiency of operations, quest for growth
and continuous innovation.” appointing Independent Directors.
The Company, through its Board and Committees, Also, DPE Guidelines are under revision to align it
endeavours to strike and deliver the highest governing with the Companies Act, 2013.
standards to meet the aspirations of every stakeholder. iii. Woman Directors
It believes that the governance process should ensure
As per the requirements of the Companies Act,
that the resources are utilised in a manner that meets
stakeholders’ aspirations and societal expectations. 2013, the Company has one Woman Director on its
Board.
We follow Guidelines on Corporate Governance
for Central Public Sector Enterprises issued by the iv. Board Meetings
Department of Public Enterprises, Government of India As on 31.03.2017, there were 4 (four) Directors
to the extent such compliances are within the ambit of on the Board, out of which three directors
the Company. were nominated by NTPC and one director was
2. Board of Directors nominated by the Ministry of Railways.
The Board of Directors is the apex body constituted During the year, 7 (seven) Meetings of the Board
by shareholders for overseeing the Company’s overall were held on 05.05.2016, 27.07.2016, 24.08.2016,
functioning. The Board provides and evaluates the 21.12.2016, 23.01.2017, 17.02.2017 and
Company’s strategic direction, management policies 22.03.2017. The attendance of Directors in Board
Meetings is as under:
183
A Maharatna Company
Date of the Meeting/ Name of DIN BOARD MEETINGS

the Director 05.05.16 27.07.16 24.08.16 21.12.16 23.01.17 17.02.17 22.03.17
Shri S.C. Pandey, Chairman 03142319 Yes Yes Yes Yes Yes Yes Yes
(nominated by NTPC)
Shri Sudhir Garg, Director 07092274 Yes Yes Yes Yes Yes Yes Yes
(nominated by Ministry of
Railways)
Shri K.S. Garbyal, Director 07027435 Yes Yes Yes Yes Yes Yes No
(nominated by NTPC)
Smt. Sangeeta Bhatia, Director 06889475 Yes Yes Yes Yes Yes Yes Yes
(nominated by NTPC)
v. Number of Shares held by the Directors as on (iii) Noting appointment and removal of external
31.03.2017 auditors. Recommending audit fee of external
auditors and also approval for payment for any
Directors No. of shares other service;
Shri S.C. Pandey, Chairman 100 (iv) Recommending appointment and remuneration of
Shri Sudhir Garg, Director - Cost Auditors;
Shri K.S. Garbyal, Director 100 (v) Review and monitor the auditor’s independence
Smt. Sangeeta Bhatia, Director 100 and performance, and effectiveness of audit
3. Committees of the Board process;
Our Board has constituted sub-committees to focus on (vi) Approval or any subsequent modification of
specific areas and make informed decisions within the transactions of the company with related parties;
authority delegated to each of the Committees. Each (vii) Scrutiny of inter-corporate loans and investments;
Committee of the Board is guided by its Charter, which (viii) Valuation of undertakings or assets of the company,
defines the scope, powers and composition of the wherever it is necessary;
Committee. All decisions and recommendations of the
(ix) Evaluation of internal financial controls and risk
Committees are placed before the Board for information
management systems;
and approval respectively. Senior functional executives
are also invited, as and when required, to provide (x) Monitoring the end use of funds raised through
necessary information/clarification to the Committees public offers and related matters;
of the Board. We have following sub-committees of the (xi) Receiving the findings of any internal investigation
Board as on 31.03.2017: by the internal auditors into matters where there
A. Audit Committee is suspected fraud or irregularity or a failure of
internal control systems of a nature and reporting
B. Nomination and Remuneration Committee
the matter to the Board;
C. Corporate Social Responsibility Committee
(xii) Consider and review the following with the
A. Audit Committee management, internal Auditor and the independent
The term of reference of Audit Committee is in Auditor:
accordance with Section 177(4) of the Companies Act, 1. Significant findings during the year, including
2013 and DPE Guidelines on Corporate Governance for the status of previous audit recommendations;
CPSEs,which includes the following:
2. Any difficulties encountered during audit work
(i) Discussions with the Auditors about the scope of including any restrictions on the Scope of the
audit including observations of auditors; activities or access to required information.
(ii) Oversight of the Company’s financial reporting (xiii) Review of all financial reports including Annexure
process and the disclosure of its financial to Cost Audit Reports, Internal Audit reports etc;
information to ensure that financial statement are
(xiv) Review of Management Discussion and Analysis
correct, sufficient and credible;
report;
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A Maharatna Company
(xv)
Review of half-yearly and annual financial (iii) Shall while formulating the policy, NRC ensures
statements before submission to the Board for that:
approval, with particular reference to: 1. Relationship of remuneration to performance
1. Change, if any, in accounting policies and is clear & meets appropriate performance
practices and reasons for the same; benchmarks and meets appropriate
performance benchmarks
2. Significant adjustments made in financial
statements arising out of audit findings; 2. Management involves a balance b/w fixed
& incentive pay reflecting short & long-term
3. Disclosure of any related party transactions;
performance objectives appropriate to the
4. Qualifications in audit report. working of the company & its goals
(xvi) Review of observations of Statutory Auditors and The constitution of the Nomination & Remuneration
Comptroller and Auditor General of India and Committee of the Company as on 31.03.2017,
(xvii) Such matters as may be referred to it by the Board comprised 3 (three) Members namely Shri K.S. Garbyal,
of Directors, from time to time. Shri Sudhir Garg and Smt. Sangeeta Bhatia.
The constitution of the Audit Committee of the Company During the 2016-17, 1 (one) meeting of the Nomination
as on 31.03.2017, comprised 3 (three)Members namely and Remuneration Committee was held on 27.07.2016
Shri S.C. Pandey, Shri Sudhir Garg and Smt. Sangeeta in which all the Members were present.
Bhatia. C. Corporate Social Responsibility Committee
During the year, four Meetings of the Committee The term of reference of Corporate Social Responsibility
were held on 05.05.2016, 27.07.2016, 24.08.2016 Committee is in accordance with Section 135 of the
and 21.12.2016. The attendance of Directors in these Companies Act, 2013 which is as under:
Meetings is as under:
(i) To formulate & recommend to the Board, a
Date of the 05.05.16 27.07.16 24.08.16 21.12.16 CSR Policy which shall indicate the activities to
Meeting/ Name be undertaken by the company as specified
of the Member in Schedule VII to the Companies Act, 2013 as
amended from time to time by the Ministry of
Shri S.C. Pandey Yes Yes Yes Yes Corporate Affairs, GOI;
(ii) To recommend the amount of expenditure to be
Shri Sudhir Garg Yes Yes Yes Yes incurred on the activities referred to in clause (a)
and approve the budget for CSR;
Smt. Sangeeta Yes Yes Yes Yes
(iii) To monitor the CSR Policy of the company from
Bhatia
time to time;
During the year, there is no instance, where the Board (iv) Shall institute a transparent monitoring mechanism
had not accepted any recommendation(s) of the Audit for implementation of the CSR projects or programs
Committee. or activities undertaken by the company;
Your Company has ensured to remain in the regime of (v) Any other matter as may be delegated by the
unqualified statement.
Board from time to time.
B. Nomination & Remuneration Committee
The constitution of the Corporate Social Responsibility
The term of reference of Nomination & Remuneration Committee of the Company as on 31.03.2017 comprised
Committee is in accordance with Section 178 of the 3 (three) Directors namely Shri S.C. Pandey, Shri Sudhir
Companies Act, 2013, which is as under: Garg and Smt. Sangeeta Bhatia.
(i) Shall identify who may be appointed in senior No meeting of the CSR Committee was held during FY
management in accordance with the criteria laid
2016-17.
down, recommend to the board their appointment
and removal; 4. Remuneration Policy/ Detail of Remuneration to
Directors
(ii) Shall formulate the criteria for determining
qualifications, positive attributes & recommend to Since the Directors are nominated by NTPC or by Ministry
the board a policy relating to the remuneration for, of Railways, they are governed by the remuneration
KMP & other employees; policy as applicable to their parent company.
185
A Maharatna Company
5. Performance Related Payment to Employees Date of the EGM AGM

As majority of the employees are on secondment basis Meeting/ Name 14.06.16 27.07.16
from NTPC, their remuneration is as per the rules of of the Director
NTPC. Shri K.S. Garbyal Yes Yes
Annual Performance Related Payment is decided by the Smt. Sangeeta Yes Yes
Remuneration Committee of NTPC and such decision is Bhatia
applicable to the employees on secondment basis to
* attended as nominee of Ministry of Railways
BRBCL.
The Chairman of the Audit Committee was present in
6. General Body Meetings
the Annual General Meeting.
The attendance of Directors in Annual General Meeting
and Extra-Ordinary General Meeting is as under: Forthcoming AGM: Date, Time and Venue
The 10th Annual General Meeting of the Company (AGM) is
Date of the EGM AGM scheduled on Friday 25th August, 2017 at 5.00 pm the day
Meeting/ Name 14.06.16 27.07.16 of, 2017 at :00 hrs. at the registered office of the Company
of the Director situated at NTPC Bhawan, Scope Complex, 7, Institutional
Shri S.C. Pandey Yes Yes Area, Lodi Road, New Delhi-110003.
Shri Sudhir Garg Yes* Yes*
Location and Time of the last three AGMs
The location, time and details of the special resolutions passed during last three AGMs are as follows:
Year 2013-14 2014-15 2015-16

AGM 7 th
8 th
9th
Date and Time 10.07.2014 28.08.2015 27.07.2016

3.00 p.m. 2.30 p.m. 12:30 p.m.
Venue NTPC Bhawan, SCOPE Complex, NTPC Bhawan, SCOPE Complex, NTPC Bhawan, SCOPE Complex,
7, Institutional Area, Lodi Road, 7, Institutional Area, Lodi Road, 7, Institutional Area, Lodi Road,
New Delhi-110003 New Delhi-110003 New Delhi-110003
Special Resolution (i) To increase borrowing - -
Passed powers of the Board up to
` 4,000 Crore.
(ii) Authorise the Board to
mortgage the assets of the
Company for securing loan.
7. Means of Communication c) CEO and CFO of the Company, inter-alia, confirmed
The Company communicates with its shareholders the correctness of the financial statements,
through its Annual Report and General Meetings. adequacy of the internal control and certified
other matters to the Board and Audit Committee,
8. Disclosures
as per the requirements of Department of Public
a) The Annual Financial Statements FY 2016-17 are in Enterprises Guidelines.
conformity with applicable Accounting Standards.
d) All the Board Members and Senior Management
During the year, there have been no materially
Personnel are governed by the Code of Conduct
significant Related Party Transactions that may have
of NTPC Limited as they are nominated/ deputed
potential conflict with the interest of the Company
by NTPC. The affirmation to the Code of Conduct is
at large. The details of “Related Party Disclosures”
given by Board Members and Senior Management
are being disclosed in Notes to the accounts in the
Personnel at NTPC.
Annual Report.
e) The Company promotes ethical behaviour in all its
b) The Company has a system in place for monitoring
business activities and has put in place a mechanism
of various statutory and procedural compliances.
for reporting illegal or unethical behaviour. The
Further, a compliance certificate on applicable
Company has implemented Whistle Blower Policy
laws is in place on yearly basis.
(Vigil Mechanism) under which the employees
186
A Maharatna Company
are free to report violations of applicable laws professionals/ consultants on business-related issues at
and regulations. No personnel have been denied the Board/Committee meetings as and when required.
access to the Audit Committee. 11. Location of Plant:
f) During the year under review, no Presidential Nabinagar Thermal Power Project (4x250 MW), Distt.
Directive was received by your Company. Aurangabad, Nabinagar, Bihar.
9. The information regarding shareholding pattern of
Promoters and Directors is given under Extract of
Annual Return which is at Annex III to the Directors’ For and on behalf of Board of Directors
Report.
10. Training of Board Members
As the Board Members are the Nominees of NTPC (S.C. Pandey)
and Ministry of Railways, they are being imparted
Place: New Delhi Chairman
training by the parent companies. However, detailed
presentations were made by senior executives/ Dated: 25.08.2017 (DIN: 03142319)
Chief Executive Officer (CEO) & Chief Financial Officer (CFO) Certification
We, C. Sivakumar, Chief Executive Officer and D. Nandy, Chief Financial Officer of Bhartiya Rail Bijlee Company Limited, to
the best of our knowledge and belief, certify that:
(a) We have reviewed financial statements, including all notes to the financial statements and the cash flow statements for
the year ended March 31, 2017 and to the best of our knowledge and belief:
(i) these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
(ii) these statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
(b) To the best of our knowledge and belief, no transactions entered into by the Company during the year, which is
fraudulent, illegal or violative of the Company’s various code(s) of conduct.
(c) We are responsible for establishing and maintaining internal controls for financial reporting and we have evaluated the
effectiveness of the internal control systems of the Company pertaining to financial reporting and have disclosed to
the auditors and the Audit Committee, deficiencies in the design or operation of internal controls, if any, of which we
are aware and the steps we have taken or propose to take to rectify these deficiencies.
(d) We have indicated to the company’s auditors and the Audit Committee of BRBCL’s Board of Directors:
(i) significant changes, if any, in internal control over financial reporting during the year;
(ii) significant changes, if any, in accounting policies during the year and the same have been disclosed in the notes
to the financial statements; and
(iii) instances of significant fraud of which we have become aware and the involvement therein, if any, of the
management or an employee having a significant role in the company’s internal control system over financial
reporting.
(D. Nandy) (C. Sivakumar)

Chief Financial Officer Chief Executive Officer
Place: New Delhi

Date : May 15, 2017
187
A Maharatna Company
CERTIFICATE ON COMPLIANCE OF DPE GUIDELINES ON CORPORATE GOVERNANCE

FOR THE FINANCIAL YEAR 2016-2017
The Members,
Bhartiya Rail Bijlee Company Limited.
We have examined the compliance of Guidelines on Corporate Governance for Central Public Sector Enterprise, 2010 as
issued by DPE from time to time of your Company.
The Compliance of Guidelines on Corporate Governance is the responsibility of the management. Our examination was
limited to the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the
Guidelines on Corporate Governance. It is neither an audit nor an expression of opinion on financial statements of the
Company.
In our opinion and to the best of our information and according to the explanations given to us by the management, we
certify that, except the Composition of the Board of Directors & it’s committees & non-appointment of Company Secretary,
the Company has complied with the DPE Guidelines on Corporate Governance.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
For Agarwal S. & Associates

Company Secretaries
CS Sachin Agarwal
Partner
Date: August 10, 2017 CP No. : 5910
188
A Maharatna Company
Annexure - III to the Directors’ Report of BRBCL

Form No. MGT-9
as on financial year ended on March 31, 2017
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
i) CIN U40102DL2007GOI170661
ii) Registration Date November 22, 2007
iii) Name of the Company Bhartiya Rail Bijlee Company Limited
iv) Category / Sub-Category of the Company Public Company / Government Company
v) Address of the Registered office and contact details NTPC Bhawan, Core 7, SCOPE Complex, 7,
Institutional Area, Lodi Road, New Delhi-110003
Ph. No.: 011-24360071
Fax No.: 011-24360241
E-mail: ruchimittal@ntpc.co.in
vi) Whether listed company Yes / No No
vii) Name, Address and Contact details of Registrar and Transfer Not Applicable
Agent, if any
All the business activities contributing 10% or more of the total turnover of the company shall be stated:
Sl. Name and Description of main products/Services NIC code of the % to total turnover of
No. Product/service the Company
1 Electric Power Generation by coal based thermal power plants 35102 100%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Sl. Name and address of the CIN/GLN Holding/ Subsidiary/ % of shares Applicable
No. Company Associate held Section
1 NTPC Limited L40101DL1975GOI007966 Holding 74% 2 (46) of the
Address: NTPC Bhawan, Companies Act,
Core 7, SCOPE Complex, 2013
7, Institutional Area, Lodhi
Road, New Delhi-110003
Category of Shareholders No. of Shares held at the beginning of the year No. of shares held at the end of the year % Change
Demat Physical Total % of Total Demat Physical Total % of Total during the
shares shares year
A. Promoters
(1) Indian
a) Individual/ HUF
(i) As Nominee of NTPC - 500 500 0.00 - 500 500 0.00 -
(ii) As Nominee of Ministry of - 100 100 0.00 - 100 100 0.00 -
Railways
189
A Maharatna Company
Category of Shareholders No. of Shares held at the beginning of the year No. of shares held at the end of the year % Change
Demat Physical Total % of Total Demat Physical Total % of Total during the
shares shares year
b) Central Govt. - 41,19,99,900 41,19,99,900 26.00 - 41,19,99,900 41,19,99,900 26.00 -

(Ministry of Railways)
c) State Govt.(s) - - - - - - - - -
d) Bodies Corp.
NTPC Limited - 1,17,26,13,350 1,17,26,13,350 74.00 - 1,17,26,13,350 1,17,26,13,350 74.00 -
e) Banks/FI - - - - - - - - -
f) Any Other - - - - - - - - -
Sub-total (A) (1):- - 1,58,46,13,850 1,58,46,13,850 100% 1,58,46,13,850 1,58,46,13,850 100%
(2) Foreign
a)NRIs- individuals - - - - - - - - -
b)Other-Individuals - - - - - - - - -
c) Bodies Corp. - - - - - - - - -
d) Banks / FI - - - - - - - - -
e) Any Other - - - - - - - - -
Sub-total (A) (2):- - - - - - - - - -
Total shareholding of Promoter - 1,58,46,13,850 1,58,46,13,850 100% - 1,58,46,13,850 1,58,46,13,850 100% -
(A) = (A)(1) + (A)(2)
1. Institutions
a) Mutual Funds - - - - - - - - -
b) Banks/FI - - - - - - - - -
c) Central Govt. - - - - - - - - -
d) State Govt.(s) - - - - - - - - -
e) Venture Capital Funds - - - - - - - - -
f) Insurance Companies - - - - - - - - -
g) FIIs - - - - - - - - -
h) Foreign Venture Capital Funds - - - - - - - - -
i) Others (specify) - - - - - - - - -
Sub-total (B) (1):- - - - - - - - - -
2. Non-institutions
a) Bodies Corp.
i) Indian - - - - - - - - -
ii) Overseas - - - - - - - - -
b) Individuals
i)
Individual Shareholders holding - - - - - - - - -
nominal share capital upto ` 1 lakh
ii)
Individuals shareholders holding
nominal share capital in excess of
` 1 lakh
c) Others (specify) - - - - - - - - -
Sub-total (B) (2):- - - - - - - - - -
Total Public Shareholding (B)=(B) - - - - - - - - -
(1)+(B)(2)
C. Shares held by Custodian for - - - - - - - - -
GDRs & ADRs
Grand Total (A+B+C) - 1,58,46,13,850 1,58,46,13,850 100% - 1,58,46,13,850 1,58,46,13,850 100% -
190
A Maharatna Company
Sl. Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year
No. No. of Shares % of total % of Shares No. of shares % of total % of Shares % change in the
Shares of the Pledged / Shares of the Pledged / shareholding
company encumbered to company encumbered to during the year
total shares total shares
1. NTPC Limited 1,17,26,13,350 74.00 - 1,17,26,13,350 74.00 - -
2. Ministry of Railways 41,19,99,900 26.00 - 41,19,99,900 26.00 - -
3. Nominees of NTPC 500 0.00 - 500 0.00 - -
4. Nominees of Ministry of 100 0.00 - 100 0.00 - -
Railways
SI. Particulars Shareholding at the beginning of the year Cumulative shareholding during the year
No. No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 1,58,46,13,850 100.00 1,58,46,13,850 100.00
Date wise Increase / Decrease in Promoters Shareholding - - - -
during the year specifying the reasons for increase / decrease
(e.g. allotment / transfer / bonus / sweat equity etc.):
At the End of the year 1,58,46,13,850 100.00 1,58,46,13,850 100.00
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs)
SI. For each of Top 10 shareholders Shareholding at the beginning of the year Cumulative Shareholding during the year
Date wise Increase / Decrease in Shareholding during the year - - - -
specifying the reasons for increase / decrease (e.g. allotment
/ transfer / bonus / sweat equity etc.):
At the end of the year ( or on the date of separation, if - - - -
separated during the year)
SI. For each of the Directors and KMP Shareholding at the beginning of the year Cumulative Shareholding during the year
1. Shri S.C. Pandey
Chairman & Nominee of NTPC
/ transfer/ bonus /sweat equity etc):
191
A Maharatna Company
SI. For each of the Directors and KMP Shareholding at the beginning of the year Cumulative Shareholding during the year
2. Shri K.S. Garbyal
3. Ms. Sangeeta Bhatia
V. INDEBTEDNESS
Secured Loans Unsecured Loans Deposits Total Indebtedness

excluding deposits
Indebtedness at the beginning
of the financial year
i) Principal Amount 38,88,43,16,356 38,88,43,16,356
ii) Interest due but not paid 53,06,57,422 53,06,57,422
iii)
Interest accrued but not - -
due
Total (i + ii + iii) 39,41,49,73,778 39,41,49,73,778
Change in Indebtedness
during the financial year
• Addition 5,86,48,41,337 5,86,48,41,337
• Reduction - -
Net Change 5,86,48,41,337 5,86,48,41,337
Indebtedness at the end of the
financial year
i) Principal amount 44,74,91,57,693 44,74,91,57,693
ii) Interest due but not paid 64,56,12,442 64,56,12,442
iii) Interest accrued but not - -
due
Total ( i + ii + iii) 45,39,47,70,135 45,39,47,70,135
192
A Maharatna Company

Sl. Particulars of Remuneration Name of MD/WTD/Manager Total

No. Amount
(a) Salary as per provisions contained in section 17(1)
if the Income-tax Act,1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961
(c) Profits in lieu of salary under section 17(3) Income-
tax Act, 1961
- as % of profit
Total (A) - - - - -

No. Amount
• Fee for attending board / committee meetings
• Commission
Total (1) - - - - -
• Fee for attending board/ committee meetings
• Commission
Total (2) - - - - -
Total (B) = (1 + 2) - - - - -

No. CEO Co. Secy. CFO Total
1. Gross Salary 31,99,788 33,12,983 65,12,771
(a)
Salary as per provisions contained in section 17(1) of the - - - -
Income-tax Act,1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 2,42,584 - 81,946 3,24,530
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 -
193
A Maharatna Company

No. CEO Co. Secy. CFO Total
4. Commission - as % of profit
- others, specify… - - -
5. Others, please specify - - - -
Total 34,42,372 - 33,94,929 68,37,301
Type Section of the Brief description Details of Penalty Authority (RD / Appeal made, if
Companies Act / Punishment / NCLT / COURT) any (give details)
Compounding
fees imposed
A. COMPANY
Penalty - - - - -
B. DIRECTORS
Penalty - - - - -
Penalty - - - - -
For and on behalf of Board of Directors
(S.C. Pandey)
Place: New Delhi Chairman
Dated: 25.08.2017 (DIN: 03142319)
194
A Maharatna Company
Annexure - IV to the Directors’ Report of BRBCL

{Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014}
To,
The Members,
Bhartiya Rail Bijlee Company Limited.
We have conducted the Secretarial Audit of the Compliance of applicable statutory provisions and the adherence to good
Corporate Practices by Bhartiya Rail Bijlee Company Limited (hereinafter called BRBCL/the Company). Secretarial Audit was
conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances
and expressing our opinion thereon.
Based on our verification of BRBCL’s books, papers, Minute books, forms and returns filed and other records maintained by
the Company and also the information provided by the Company, its officers, agents and authorized representatives during
the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the audit period covering
the financial period ended on 31st March, 2017 complied with the statutory provisions listed hereunder and also that the
Company has proper Board processes and Compliance mechanism in place to the extent, in the manner and subject to the
reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by BRBCL (“the
Company”) for the financial year ended on 31st March, 2017 according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder; Not Applicable
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder; Not Applicable
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign
Direct Investment, Overseas Direct Investment and External Commercial Borrowings; Not Applicable
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI
Act’):-
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulation, 2011;
Not Applicable
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; Not Applicable
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009; Not
Applicable
(d) The SEBI (Share Based Employee Benefits) Regulations, 2014; Not Applicable
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; Not Applicable
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealing with client; Not Applicable
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; Not Applicable and
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; Not Applicable
195
A Maharatna Company
(vi) Compliances/ processes/ systems under other applicable Laws to the Company are being verified on the basis of
periodic certificate submitted to the Board of Directors of the Company.
I have also examined compliance with the applicable clauses of the following:
(a) Secretarial Standards issued by the Institute of Company Secretaries of India.
(b) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Not
Applicable
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above subject to the following observations:
1. Compliance under Section 149(4) read with Rule 4 of Companies (Appointment and Qualification of Directors)
Rules, 2014 of the Act and Clause 3.1.4 of the DPE Guidelines on Corporate Governance with respect to the
appointment of Independent Directors on the Board of Company & consequential non-compliances thereof.
Compliance under Section 149 (8) read with Clause VIII of Schedule IV of the Act with respect to performance
2. In terms of Section 203 read with Rule 8 of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company is required to appoint a Company Secretary.
We further report that the Board of Directors of the Company is not duly constituted due to non-appointment of
Independent Directors on the Board of the Company. The changes in the composition of the Board of Directors that
took place during the period under review were carried out in compliance with the provisions of the Act.
Generally, adequate notice is given to all Directors to schedule the Board Meetings, agenda and detailed notes on
agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and
clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
All the decisions made in the Board/Committee meeting(s) were carried out with unanimous consent of the all the
Directors/Members present during the meeting.
Due to non-receipt of matching subscription amount towards Equity Capital from Ministry of Railways (one of the
Promoters & Shareholder of the Company), the Company has either allotted equity shares beyond statutory period or
has not allotted equity shares, so as to maintain equity capital ratio amongst the Promoters as per the Joint Venture
Agreement.
We further report that there are adequate systems and processes in the Company commensurate with the size and
operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines
and Company is in process of reviewing & strengthening the same.
We further report that during the audit period, there were no specific events/actions having a major bearing on the
Company’s affairs in pursuance of the above referred laws.
Company Secretaries
Sachin Agarwal
Partner
Date: June 08, 2017 CP No. : 5910
report.
196
A Maharatna Company
“Annexure A”
To,
The Members,
Bhartiya Rail Bijlee Company Limited


Company Secretaries
Sachin Agarwal
Partner
Date: June 08, 2017 CP No. : 5910
197
A Maharatna Company
BHARTIYA RAIL BIJLEE COMPANY LIMITED

BALANCE SHEET AS AT 31st MARCH 2017
` Lakhs
31.03.2017 31.03.2016 01.04.2015
ASSETS
Non-current assets
Property Plant & Equipment 2 250,496.42 47,798.18 37,862.23
Capital work-in-progress 3 434,915.65 538,944.55 450,263.52
Deferred tax assets 5 - - -
Current assets
Inventories 6 1,393.88 - -
Financial Assets
Trade receivables 7 5,277.98 - -
Cash and cash equivalent 8 541.49 12,208.46 9,399.46
Other financial assets 9 3,408.69 - -
Other current assets 10 9,562.96 2,938.68 1,520.47
Total current assets 20,185.00 15,147.14 10,919.93
TOTAL ASSETS 712,276.86 628,449.81 523,871.36
Equity
Other equity 12 29,238.02 5,243.11 3,681.66
Total equity 187,699.41 163,704.50 162,143.05
Liabilities
Non-Current liabilities
Borrowings 13 447,491.58 388,843.16 299,817.23
Total non-current liabilities 451,269.46 397,389.16 313,230.14
Current liabilities
Trade payables 15 2,982.57 6,099.17 6,336.59
Other current liabilities 17 630.79 277.96 186.34
Provisions 18 11,948.48 11,282.75 11,018.06
Current tax liabilities (net) 18A 191.36 - -
Regulatory deferral account credit balances 19 659.06 506.91 121.41
(D. Nandy) (C. Sivakumar) (S. Bhatia) (S.C. Pandey)

C.F.O. C.E.O. Director Chairman
For N. C. Aggarwal & Co.

G. K. Aggarwal
Partner
Place: New Delhi
Date: 16th May 2017
198
A Maharatna Company

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2017
` Lakhs
31.03.2017 31.03.2016
Revenue
Revenue from operations 20 8,686.67 -
Other income 21 192.71 385.52
Total revenue 8,879.38 385.52
Expenses
Employee benefits expense 22 853.45 0.92
Finance costs 23 2,942.96 -
Depreciation, amortization and impairment expense 2 2,848.84 0.02
Other expenses 24 1,116.68 1.64
Total expenses 7,761.93 2.58
Profit before tax and Rate Regulated Activities (RRA) 1,117.45 382.94
Add: Movements in regulatory deferral account balances (152.16) (385.49)
Profit before tax 965.29 (2.55)
Tax expense
Current tax 230.81 -
Tax expense/(saving) pertaining to RRA (31.43) -
Deferred tax asset-MAT Credit Entitlement (199.38) -
Add: Deferred liability for Rate Regulated Account 199.38 -
Total tax expense 199.38 -
Profit for the year 765.91 (2.55)
Other comprehensive income - -
Total comprehensive income for the year 765.91 (2.55)

Expenditure during construction period (net) 25
Earnings per equity share (Par value ` 10/- each) 39
From operations including regulatory deferral account balances
Basic Earning Per Share (`) 0.00 (0.00)
Diluted Earning Per Share (`) 0.00 (0.00)
From operations excluding regulatory deferral account balances
Basic Earning Per Share (`) 0.00 (0.00)
Diluted Earning Per Share (`) 0.00 (0.00)
The accompanying notes 1 to 45 from an integral part of these financial statements.


G. K. Aggarwal
Partner
Place: New Delhi
Date: 16th May 2017
199
A Maharatna Company

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2017
` Lakhs
31.03.2017 01.04.2016
Net Loss as per Statement of Profit & Loss 965.29 (2.55)
Adjustment for
Depreciation/ Amortisation 2,848.84 0.02
Interest Cost 2,942.96 -
Provisions created during the year 701.21 264.70
Regulatory Income/(Expense) 152.16 385.49
Operating loss before working capital changes 7,610.46 647.66
Adjustment for -
(Increase) in inventory (1,393.88) -
(Increase) in trade receivable (5,277.98) -
(Increase) in other financial assets (3,408.69) -
(Increase)/ Decrease in other current assets 1,760.99 (1,837.30)
(Increase)/ Decrease in other non current assets 6,204.44 (13.11)
(Increase) in trade payables (3,116.60) (237.42)
Decrease in other financial liabilities 1,152.78 1,094.57
Other current liabilities 352.83 91.62
Provisions (35.48) -
Cash generated from operations 3,848.87 (253.98)
Income Taxes paid 57.69 36.06
Net cash outflow from operating activities [A] 3,791.18 (290.04)
B. CASH FLOW FROM INVESTMENT ACTIVITIES

Purchase of fixed assets & CWIP (95,554.75) (87,490.88)
Net cash outflow from investing activities [B] (95,554.75) (87,490.88)
Proceeds from share Application Money 23,229.00 1,564.00
Proceeds from long term borrowings 58,648.42 89,025.92
Interest paid (1,780.81) -
Net cash inflow from financing activities [C] 80,096.61 90,589.92
Net increase/(decrease) in cash and cash equivalents [A+B+C] (11,666.96) 2,809.00
Cash and Cash equivalents at the beginning of the year 12,208.46 9,399.46
Cash and Cash equivalents at the end of the year 541.50 12,208.46
Note: Previous year’s figures have been regrouped/rearranged wherever necessary.


G. K. Aggarwal
Partner
Place: New Delhi
Date: 16th May 2017
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A Maharatna Company

(A) Equity Share Capital

` Lakhs
Balance as at 1 April 2016 Changes in equity share Balance as at 31 March
capital during the year 2017
158,461.39 - 158,461.39

` Lakhs
Balance as at 1 April 2015 Changes in equity share Balance as at 31 March
capital during the year 2017
158,461.39 - 158,461.39
(B) Other Equity

` Lakhs
Particulars Other Equity Total
Share Application Retained Earnings
Money Pending
Allotment
Balance as at 1 April 2016 1,564.00 3,679.11 5,243.11
Profit for the year - 765.91 765.91
Share Application Money refunded 1,564.00 - 1,564.00
Share Application Money received 24,793.00 - 24,793.00
Balance as at 31 March 2017 24,793.00 4,445.02 29,238.02

` Lakhs
Particulars Other Equity Total
Share Application Retained Earnings
Money Pending
Allotment
Balance as at 1 April 2015 - 3,681.66 3,681.66
Profit for the year - (2.55) (2.55)
Share Application Money received 1,564.00 - 1,564.00
Balance as at 31 March 2016 1,564.00 3,679.11 5,243.11
201
A Maharatna Company
1. Significant Accounting Policies These financial statements were authorized

1. Company Information and Significant Accounting for issue by Board of Directors on 16 May
Policies 2017.
A. Reporting entity 2. Basis of measurement
Bhartiya Rail Bijlee Company Limited (the The financial statements have been prepared
“Company”) is a Company domiciled in India and on the historical cost basis.
limited by shares (CIN: U40102DL2007PLC170661). 3. Functional and presentation currency
The address of the Company’s registered office is These financial statements are presented in
NTPC Bhawan, SCOPE Complex, 7 Institutional Area, Rs. Lakhs (upto two decimals) which is the
Lodi Road, New Delhi - 110003. The Company is Company’s functional currency, except for per
involved in the generation and sale of bulk power share data and as other-wise stated.
to Indian Railways and State Power Utilities.
C. Significant accounting policies
B. Basis of preparation
A summary of the significant accounting policies
1. Statement of Compliance applied in the preparation of the financial statements
These financial statements are prepared are as given below. These accounting policies have
on accrual basis of accounting and comply been applied consistently to all periods presented
with the Indian Accounting Standards (Ind in the financial statements.
AS) notified under the Companies (Indian The Company has elected to utilize the option
Accounting Standards) Rules, 2015 and under Ind AS 101 by not applying the provisions
subsequent amendments thereto, the of Ind AS 16 and Ind AS 38 retrospectively and
Companies Act, 2013 (to the extent notified continue to use the Indian GAAP carrying amount
and applicable), applicable provisions of as a deemed cost under Ind AS at the date of
the Companies Act, 1956, and the provisions transition to Ind AS. Therefore, the carrying amount
of the Electricity Act, 2003 to the extent of property, plant and equipment and intangible
applicable. These are the Company’s first Ind assets at 1 April 2015, the Company’s date of
AS compliant financial statements and Ind AS transition to Ind AS, according to the Indian GAAP
101 ‘First Time Adoption of Indian Accounting were maintained in transition to Ind AS.
Standards’ has been applied.
For all the periods upto and including 31
1.1. Initial recognition and measurement
March 2016, the Company prepared its
financial statements in accordance with Items of property, plant and equipment
Generally Accepted Accounting Principles are measured at cost less accumulated
(GAAP) in India, accounting standards depreciation/ amortization and
specified under Section 133 of the Companies accumulated impairment losses. Cost
Act, 2013, the Companies Act, 2013 (to the includes expenditure that is directly
extent notified and applicable), applicable attributable to bringing the asset to the
provisions of the Companies Act, 1956, and location and condition necessary for its
the provisions of the Electricity Act, 2003 to intended use.
the extent applicable. The Company followed When parts of an item of property, plant
the provisions of Ind AS 101 in preparing its and equipment have different useful lives,
opening Ind AS Balance Sheet as of the date they are recognized separately.
of transition, viz. 1 April 2015. Certain of the Deposits, payments/liabilities made
Company’s Ind AS accounting policies used in provisionally towards compensation,
the opening Balance Sheet differed from its rehabilitation and other expenses
Indian GAAP policies applied as at 31 March relatable to land in possession are treated
2015, and accordingly the adjustments were as cost of land.
made to restate the opening balances as per
Ind AS. The resulting adjustments arose from In the case of assets put to use, where
events and transactions before the date of final settlement of bills with contractors is
transition to Ind AS. Therefore, as required yet to be effected, capitalization is done
by Ind AS 101, those adjustments were on provisional basis subject to necessary
recognized directly through retained earnings adjustment in the year of final settlement.
as at 1 April 2015. This is the effect of the Assets and systems common to more
general rule of Ind AS 101 which is to apply than one generating unit are capitalized
Ind AS retrospectively. on the basis of engineering estimates/
An explanation of how the transition to Ind AS assessments.
has affected the reported financial position, 1.2. Subsequent costs
financial performance and cash flows of the Subsequent expenditure is recognized
Company is provided in note 22. as an increase in the carrying amount of
202
A Maharatna Company
the asset when it is probable that future less accumulated amortization and accumulated
economic benefits deriving from the cost impairment losses. Cost includes any directly
incurred will flow to the enterprise and attributable incidental expenses necessary to
the cost of the item can be measured make the assets ready for its intended use.
reliably. 3.2. Subsequent costs
The cost of replacing part of an item Subsequent expenditure is capitalized only when it
of property, plant and equipment is increases the future economic benefits embodied
recognized in the carrying amount of in the specific asset to which it relates. All other
the item if it is probable that the future expenditures are recognized in profit or loss as
economic benefits embodied within incurred.
the part will flow to the Company and
3.3. Derecognition
its cost can be measured reliably. The
carrying amount of the replaced part An intangible asset is derecognized when no future
is derecognized. The costs of the day- economic benefits are expected from their use or
to-day servicing of property, plant and upon their disposal. Gains and losses on disposal
equipment are recognized in profit or of an item of intangible assets are determined
loss as incurred. by comparing the proceeds from disposal with
the carrying amount of intangible assets and are
1.3. Decommissioning costs
recognized in the statement of profit and loss.
The present value of the expected cost
4. Regulatory deferral account balances
for the decommissioning of the asset
after its use is included in the cost of the Expense/income recognized in the Statement of Profit
respective asset if the recognition criteria & Loss to the extent recoverable from or payable to
for a provision are met. the beneficiaries in subsequent periods as per CERC
Tariff Regulations are recognized as ‘Regulatory deferral
1.4. Derecognition
account balances’.
Regulatory deferral accounts balances are adjusted
derecognized when no future economic
from the year in which the same become recoverable
benefits are expected from their use or
from or payable to the beneficiaries.
upon their disposal. Gains and losses on
disposal of an item of property, plant and 5. Borrowing costs
equipment are determined by comparing Borrowing costs that are directly attributable to the
the proceeds from disposal with the acquisition, construction or erection of qualifying
carrying amount of property, plant and assets are capitalized as part of cost of such asset
equipment, and are recognized in the until such time the assets are substantially ready for
statement of profit and loss. their intended use. Qualifying assets are assets which
2. Capital work-in-progress take a substantial period of time to get ready for their
intended use or sale.
The cost of self-constructed assets includes the cost
of materials & direct labour, any other costs directly When the Company borrows funds specifically for the
attributable to bringing the assets to a working purpose of obtaining a qualifying asset, the borrowing
condition and location for their intended use, and the costs incurred are capitalized. When Company borrows
initial estimate of dismantling and removing the items funds generally and uses them for the purpose of
and restoring the site on which they are located and obtaining a qualifying asset, the capitalization of the
borrowing costs. borrowing costs is computed based on the weighted
average cost of general borrowing that are outstanding
Expenses directly attributable to construction of
during the period and used for the acquisition,
property, plant and equipment incurred till they
construction or erection of the qualifying asset.
are ready for their intended use are identified and
allocated on a systematic basis on the cost of related Capitalization of borrowing costs ceases when
assets. substantially all the activities necessary to prepare the
qualifying assets for their intended uses are complete.
Deposit works/cost plus contracts are accounted for
Borrowing costs consist of interest and other costs that
on the basis of statements of account received from
an entity incurs in connection with the borrowing of
the contractors.
funds. Income earned on temporary investment of the
Unsettled liabilities for price variation/exchange rate borrowings pending their expenditure on the qualifying
variation in case of contracts are accounted for on assets is deducted from the borrowing costs eligible
estimated basis as per terms of the contracts. for capitalization. Borrowing costs include exchange
3. Intangible assets differences arising from foreign currency borrowings
3.1. Initial recognition and measurement to the extent that they are regarded as an adjustment
to interest costs.
Intangible assets that are acquired by the Company,
which have finite useful lives, are measured at cost Other borrowing costs are recognized as an expense in
the year in which they are incurred.
203
A Maharatna Company
6. Inventories Revenue from sale of energy is accounted for based

Inventories are valued at the lower of cost and net on tariff rates approved by the CERC (excepted items
realizable value. Cost includes cost of purchase, cost indicated as provisional) as modified by the orders
of conversion and other costs incurred in bringing the of Appellate Tribunal for Electricity to the extent
inventories to their present location and condition. applicable. In case the tariff rate is yet to be approved/
Cost is determined on weighted average basis. items indicated provisional by the CERC in their order,
Costs of purchased inventory are determined after provisional rate is adopted considering the applicable
deducting rebates and discounts. Net realizable value CERC Tariff Regulations. Revenue from sale of energy is
is the estimated selling price in the ordinary course of recognized once the electricity has been delivered to
business, less estimated costs of completion and the the customer and is measured through a regular review
estimated costs necessary to make the sale. Steel scrap of usage meters. Customers are billed on a periodic
has been valued at estimated realizable value. and regular basis.
The diminution in the value of obsolete, unserviceable The incentives/disincentives are accounted for based
and surplus stores & spares is ascertained on review on the norms notified/approved by the CERC as per
and provided for. principles enunciated in Ind AS 18. In cases of power
7. Cash and cash equivalents stations where the same have not been notified/
approved, incentives/disincentives are accounted for
Cash and cash equivalents in the balance sheet on provisional basis.
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or Part of revenue from sale of energy is recognized based
less, which are subject to an insignificant risk of changes on the rates & terms and conditions mutually agreed
in value. with the beneficiaries.
8. Foreign currency transactions and translation Rebates allowed to beneficiaries as early payment
Transactions in foreign currencies are initially recorded incentives are deducted from the amount of revenue.
at the functional currency spot rates at the date the Exchange differences arising from settlement/
transaction first qualifies for recognition. translation of monetary items denominated in foreign
Monetary assets and liabilities denominated in foreign currency to the extent recoverable from or payable
currencies are translated at the functional currency to the beneficiaries in subsequent periods as per the
spot rates of exchange at the reporting date. Exchange CERC Tariff Regulations are accounted as ‘Regulatory
differences arising on settlement or translation of deferred account balances’ and adjusted from the year
monetary items are recognized in profit or loss in the in which the same becomes recoverable/payable.
year in which it arises with the exception that exchange Revenue from other income comprises interest from
differences on long term monetary items related to banks, employees, contractors etc., surcharge received
acquisition of assets recognized upto 31 March 2016 from customers for delayed payments, sale of scrap,
are adjusted to carrying cost of assets. other miscellaneous income, etc.
Non-monetary items are measured in terms of historical 10. Other Income
cost in a foreign currency are translated using the
exchange rate at the date of the transaction. Scrap other than steel scrap is accounted for as and
9. Revenue when sold.
Company’s revenues arise from sale of energy and Other insurance claims are accounted for based on
other income. The Company’s operations are regulated certainty of realization.
under the Electricity Act, 2003. Accordingly, the CERC Interest/surcharge recoverable on advances to
determines the tariff for the Company’s power plant suppliers as well as warranty claims wherever there is
based on the norms prescribed in the tariff regulations uncertainty of realization/acceptance are not treated
as applicable from time to time. Tariff is based on the as accrued and are therefore, accounted for on
capital cost incurred for a power plant and primarily receipt/acceptance.
comprises two components: capacity charge i.e. a fixed
charge, that includes depreciation, return on equity, Exchange differences arising from settlement/
interest on working capital, operating & maintenance translation of monetary items denominated in foreign
expenses, interest on loan and energy charge i.e. a currency to the extent recoverable from or payable
variable charge primarily based on fuel costs. to the beneficiaries in subsequent periods as per the
CERC Tariff Regulations are accounted as ‘Regulatory
Revenue from the sale of energy is measured at the deferred accounts balances’ during construction
fair value of the consideration received or receivable. period and adjusted from the year in which the same
Revenue is recognized when the significant risks and becomes recoverable/payable.
rewards of ownership have been transferred to the
buyer, recovery of the consideration is probable, the 11. Depreciation/amortization
associated costs can be estimated reliably, there is no Depreciation is recognized in profit or loss on a straight-
continuing management involvement, and the amount line basis over the estimated useful lives of each part of
of revenue can be measured reliably. an item of property, plant and equipment.
204
A Maharatna Company
Depreciation on the assets of the generation of electricity business is charged on straight line method following the rates
and methodology notified by the CERC Tariff Regulations in accordance with Schedule II of the Companies Act, 2013.
Depreciation on the following assets is provided on their estimated useful life ascertained on technical evaluation:
a) Kutcha Roads 2 years
b) Enabling works
- residential buildings 15 years
- internal electrification of residential buildings 10 years
- non-residential buildings including their internal electrification, water supply, sewerage & drainage 5 years
works, railway sidings, aerodromes, helipads and airstrips.
c) Personal computers & laptops including peripherals 3 years
d) Photocopiers, fax machines, water coolers and refrigerators 5 years
e) Temporary erections including wooden structures 1 year
f) Telephone exchange 15 years
g) Wireless systems, VSAT equipments, display devices viz. projectors, screens, CCTV, audio video 6 years
conferencing systems and other communication equipments
Assets costing up to ` 5,000/- are fully depreciated in the year of acquisition.
Cost of software recognized as intangible asset, is are therefore, accounted for on receipt/acceptance
amortized on straight line method over a period of and netted off from related expenses / project costs.
legal right to use or 3 years, whichever is less. Other 13. Employee benefits
intangible assets are amortized on straight line method
over the period of legal right to use or life of the related The employees of the company are on secondment
plant, whichever is less. from the parent company. Employee benefits include
provident fund, gratuity, post-retirement medical
Depreciation on additions to/deductions from assets facilities, compensated absences, long service award,
during the year is charged on pro-rata basis from/up economic rehabilitation scheme & other terminal
to the month in which the asset is available for use/ benefits. In terms of arrangement with the parent
disposed. company, the company makes a fixed percentage
Where the cost of depreciable assets has undergone contribution of the aggregate of basic pay and
a change during the year due to increase/decrease in dearness allowance for the period of service rendered
long term liabilities on account of exchange fluctuation, in the company. Accordingly, these employee benefits
price adjustment, change in duties or similar factors, are treated as defined contribution schemes.
the unamortized balance of such asset is charged off 14. Leases
prospectively over the remaining useful life determined
following the applicable accounting policies relating to As Lessee
depreciation/ amortization. Accounting for operating leases
Where it is probable that future economic benefits Leases in which a significant portion of the risks and
deriving from the cost incurred will flow to the rewards of ownership are not transferred to the
enterprise and the cost of the item can be measured Company as lessee are classified as operating lease.
reliably, subsequent expenditure on a PPE along-with Payments made under operating leases are recognized
its unamortized depreciable amount is charged off as an expense over the lease term. Lease incentives
prospectively over the revised useful life determined received are recognized as an integral part of the total
by technical assessment. lease expense, over the term of the lease.
12. Other Expenses 15. Impairment of non-financial assets
Expenses on ex-gratia payments under voluntary The carrying amounts of the Company’s non-financial
retirement scheme, training & recruitment and research assets are reviewed at each reporting date to determine
& development are charged to revenue in the year whether there is any indication of impairment
incurred. considering the provisions of Ind AS 36 ‘Impairment
Preliminary expenses on account of new projects of Assets’. If any such indication exists, then the asset’s
incurred prior to approval of feasibility report/techno recoverable amount is estimated.
economic clearance are charged to revenue. The recoverable amount of an asset or cash-generating
Net pre-commissioning income/expenditure is adjusted unit is the greater of its value in use and its fair value
directly in the cost of related assets and systems. less costs to sell. In assessing value in use, the estimated
future cash flows are discounted to their present value
Transit and handling losses of coal as per Company’s using a pre-tax discount rate that reflects current market
norms are included in cost of coal. assessments of the time value of money and the risks
Liquidated damages, wherever there is uncertainty of specific to the asset. For the purpose of impairment
realization/acceptance are not treated as accrued and
205
A Maharatna Company
testing, assets that cannot be tested individually are These are reviewed at each balance sheet date and are
grouped together into the smallest group of assets adjusted to reflect the current management estimate.
that generates cash inflows from continuing use that 17. Income tax
are largely independent of the cash inflows of other
Income tax expense comprises current and deferred
assets or groups of assets (the “cash-generating unit”,
tax. Current tax expense is recognized in profit or loss
or “CGU”).
except to the extent that it relates to items recognized
An impairment loss is recognized if the carrying amount directly in other comprehensive income or equity, in
of an asset or its CGU exceeds its estimated recoverable which case it is recognized in other comprehensive
amount. Impairment losses are recognized in profit or income or equity.
loss. Impairment losses recognized in respect of CGUs
Current tax is the expected tax payable on the taxable
are reduced from the carrying amounts of the assets of
income for the year, using tax rates enacted or
the CGU.
substantively enacted at the reporting date, and any
Impairment losses recognized in prior periods are adjustment to tax payable in respect of previous years.
assessed at each reporting date for any indications Current income taxes are recognized under ‘Income
that the loss has decreased or no longer exists. An tax payable’ net of payments on account, or under ‘Tax
impairment loss is reversed if there has been a change receivables’ where there is a credit balance.
in the estimates used to determine the recoverable
Deferred tax is recognized using the balance sheet
amount. An impairment loss is reversed only to the
method, providing for temporary differences between
extent that the asset’s carrying amount does not exceed
the carrying amounts of assets and liabilities for financial
the carrying amount that would have been determined,
reporting purposes and the amounts used for taxation
net of depreciation or amortization, if no impairment
purposes. Deferred tax is measured at the tax rates that
loss had been recognized.
are expected to be applied to temporary differences
16. Provisions and contingent liabilities when they reverse, based on the laws that have been
A provision is recognized if, as a result of a past event, enacted or substantively enacted by the reporting date.
the Company has a present legal or constructive Deferred tax assets and liabilities are offset if there is a
obligation that can be estimated reliably, and it is legally enforceable right to offset current tax liabilities
probable that an outflow of economic benefits will be and assets, and they relate to income taxes levied by
required to settle the obligation. If the effect of the time the same tax authority on the same taxable entity, or on
value of money is material, provisions are determined different tax entities, but they intend to settle current
by discounting the expected future cash flows at a tax liabilities and assets on a net basis or their tax assets
pre-tax rate that reflects current market assessments of and liabilities will be realized simultaneously.
the time value of money and the risks specific to the Deferred tax is recognized in profit or loss except to
liability. When discounting is used, the increase in the the extent that it relates to items recognized directly in
provision due to the passage of time is recognized as a other comprehensive income or equity, in which case it
finance cost. is recognized in other comprehensive income or equity.
The amount recognized as a provision is the best A deferred tax asset is recognized to the extent that it
estimate of the consideration required to settle the is probable that future taxable profits will be available
present obligation at reporting date, taking into against which the temporary difference can be utilized.
account the risks and uncertainties surrounding the Deferred tax assets are reviewed at each reporting
obligation. date and are reduced to the extent that it is no longer
When some or all of the economic benefits required probable that the related tax benefit will be realized.
to settle a provision are expected to be recovered 18. Material prior period errors
from a third party, the receivable is recognized as an
Material prior period errors are corrected
asset if it is virtually certain that reimbursement will
retrospectively by restating the comparative amounts
be received and the amount of the receivable can be
for the prior periods presented in which the error
measured reliably. The expense relating to a provision
occurred. If the error occurred before the earliest
is presented in the statement of profit and loss net of
prior period presented, the opening balances of
any reimbursement.
assets, liabilities and equity for the earliest prior period
Contingent liabilities are possible obligations that presented, are restated.
arise from past events and whose existence will only
19. Cash flow statement
be confirmed by the occurrence or non-occurrence
of one or more future events not wholly within the Cash flow statement is prepared in accordance with
control of the Company. Where it is not probable that the indirect method prescribed in Ind AS 7 ‘Statement
an outflow of economic benefits will be required, of Cash Flows’.
or the amount cannot be estimated reliably, the 20. Current and Non-current classification
obligation is disclosed as a contingent liability, unless The Company presents assets and liabilities in the
the probability of outflow of economic benefits is balance sheet based on current / non-current
remote. Contingent liabilities are disclosed on the basis classification.
of judgment of the management/ independent experts.
206
A Maharatna Company
An asset is current when it is: Debt instrument at FVTOCI (Fair Value through
• Expected to be realized or intended to sold or OCI)
consumed in normal operating cycle; A ‘debt instrument’ is classified as at the FVTOCI if
• Held primarily for the purpose of trading; both of the following criteria are met:
• Expected to be realized within twelve months (a) The objective of the business model is
after the reporting period; or achieved both by collecting contractual cash
flows and selling the financial assets, and
• Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for at (b) The asset’s contractual cash flows represent
least twelve months after the reporting period. SPPI
All other assets are classified as non-current. Debt instruments included within the FVTOCI
category are measured initially as well as at each
A liability is current when:
reporting date at fair value. Fair value movements
• It is expected to be settled in normal operating are recognized in the other comprehensive
cycle; income (OCI). However, the Company recognizes
• It is held primarily for the purpose of trading; interest income, impairment losses & reversals and
• It is due to be settled within twelve months after foreign exchange gain or loss in the profit and loss.
the reporting period; or On derecognition of the asset, cumulative gain or
loss previously recognized in OCI is reclassified
• There is no unconditional right to defer settlement from the equity to profit and loss. Interest earned
of the liability for at least twelve months after the whilst holding FVTOCI debt instrument is reported
reporting period. as interest income using the EIR method.
All other liabilities are classified as non-current. Debt instrument at FVTPL (Fair Value through Profit
Deferred tax assets / liabilities are classified as non- or Loss)
current. FVTPL is a residual category for debt instruments.
21. Financial instruments Any debt instrument, which does not meet the
A financial instrument is any contract that gives rise to criteria for categorization as at amortized cost or
a financial asset of one entity and a financial liability or as FVTOCI, is classified as at FVTPL.
equity instrument of another entity. In addition, the Company may elect to classify a
21.1.Financial assets debt instrument, which otherwise meets amortized
Initial recognition and measurement cost or FVTOCI criteria, as at FVTPL. However,
such election is allowed only if doing so reduces
All financial assets are recognized initially at fair or eliminates a measurement or recognition
value plus or minus, in the case of financial assets inconsistency (referred to as ‘accounting
not recorded at fair value through profit or loss, mismatch’). Debt instruments included within the
transaction costs that are attributable to the FVTPL category are measured at fair value with all
acquisition or issue of the financial asset. changes recognized in the profit and loss.
Subsequent measurement Derecognition
Debt instruments at amortized cost A financial asset (or, where applicable, a part of
A ‘debt instrument’ is measured at the amortized a financial asset or part of a Company of similar
cost if both the following conditions are met: financial assets) is primarily derecognised (i.e.
(a) The asset is held within a business model removed from the Company’s balance sheet)
whose objective is to hold assets for collecting when:
contractual cash flows, and • The rights to receive cash flows from the asset
(b) Contractual terms of the asset give rise on have expired, or
specified dates to cash flows that are solely • The Company has transferred its rights to
payments of principal and interest (SPPI) on receive cash flows from the asset or has
the principal amount outstanding. assumed an obligation to pay the received
After initial measurement, such financial assets are cash flows in full without material delay
subsequently measured at amortized cost using to a third party under a ‘pass-through’
the effective interest rate (EIR) method. Amortized arrangement and either (a) the Company
cost is calculated by taking into account any has transferred substantially all the risks and
discount or premium on acquisition and fees or rewards of the asset, or (b) the Company has
costs that are an integral part of the EIR. The EIR neither transferred nor retained substantially
amortization is included in finance income in the all the risks and rewards of the asset, but has
profit or loss. The losses arising from impairment transferred control of the asset.
are recognized in the profit or loss. This category Impairment of financial assets
generally applies to trade and other receivables. In accordance with Ind AS 109, the Company
applies expected credit loss (ECL) model for
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A Maharatna Company
measurement and recognition of impairment loss any financial liability as at fair value through profit
on the financial assets that are debt instruments, and loss.
and are measured at amortized cost e.g., Borrowings
recoverables and bank balance. After initial recognition, borrowings are
For recognition of impairment loss on other financial subsequently measured at amortized cost using
assets and risk exposure, the Company determines the EIR method. Gains and losses are recognized in
that whether there has been a significant increase profit or loss when the liabilities are derecognized
in the credit risk since initial recognition. If credit as well as through the EIR amortization process.
risk has not increased significantly, 12-month ECL Amortized cost is calculated by taking into account
is used to provide for impairment loss. However, any discount or premium on acquisition and fees
if credit risk has increased significantly, lifetime or costs that are an integral part of the EIR. The
ECL is used. If, in a subsequent period, credit EIR amortization is included as finance costs in the
quality of the instrument improves such that there statement of profit and loss.
is no longer a significant increase in credit risk Derecognition
since initial recognition, then the entity reverts to
A financial liability is derecognized when the
recognizing impairment loss allowance based on
obligation under the liability is discharged or
12-month ECL.
cancelled or expires. When an existing financial
21.2.Financial liabilities liability is replaced by another from the same
Initial recognition and measurement lender on substantially different terms, or the terms
All financial liabilities are recognised initially at fair of an existing liability are substantially modified,
value and, in the case of loans and borrowings and such an exchange or modification is treated as
payables, net of directly attributable transaction the derecognition of the original liability and the
costs. The Company’s financial liabilities include recognition of a new liability. The difference in the
payable for capital expenditure and loans and respective carrying amounts is recognized in the
borrowings. statement of profit or loss.
Subsequent measurement D. Use of estimates and management judgments
Financial liabilities at amortized cost The preparation of financial statements requires
After initial measurement, such financial liabilities management to make judgments, estimates and
are subsequently measured at amortized cost assumptions that may impact the application of
using the effective interest rate (EIR) method. accounting policies and the reported value of
Amortized cost is calculated by taking into account assets, liabilities, income, expenses and related
any discount or premium on acquisition and fees disclosures concerning the items involved as well
or costs that are an integral part of the EIR. The as contingent assets and liabilities at the balance
EIR amortization is included in finance costs in the sheet date. The estimates and management’s
profit or loss. This category generally applies to judgments are based on previous experience and
trade payables and other contractual liabilities. other factors considered reasonable and prudent
in the circumstances. Actual results may differ from
Financial liabilities at fair value through profit or these estimates.
loss
Estimates and underlying assumptions are reviewed
Financial liabilities at fair value through profit or on an ongoing basis. Revisions to accounting
loss include financial liabilities held for trading estimates are recognised in the period in which
and financial liabilities designated upon initial the estimates are revised and in any future periods
recognition as at fair value through profit or loss. affected.
Financial liabilities are classified as held for trading
if they are incurred for the purpose of repurchasing In order to enhance understanding of the financial
in the near term. statements, information about significant areas of
estimation, uncertainty and critical judgments in
Gains or losses on liabilities held for trading are applying accounting policies that have the most
recognized in the profit or loss. significant effect on the amounts recognised in the
Financial liabilities designated upon initial financial statements is as under:
recognition at fair value through profit or loss are 1. Useful life of property, plant and equipment
designated at the initial date of recognition, and
only if the criteria in Ind AS 109 are satisfied. For The estimated useful life of property, plant
liabilities designated as FVTPL, fair value gains/ and equipment is based on a number of
losses attributable to changes in own credit risk factors including the effects of obsolescence,
are recognized in OCI. These gains/loss are not demand, competition and other economic
subsequently transferred to P&L. However, the factors (such as the stability of the industry
Company may transfer the cumulative gain or loss and known technological advances) and the
within equity. All other changes in fair value of level of maintenance expenditures required
such liability are recognized in the statement of to obtain the expected future cash flows from
profit or loss. The Company has not designated the asset.
208
A Maharatna Company
Useful life of the assets of the generation of CERC as modified by the orders of Appellate
electricity business is determined by the CERC Tribunal for Electricity, as per principles
Tariff Regulations in accordance with Schedule enunciated under Ind AS 18. However, in cases
II of the Companies Act, 2013. where tariff rates are yet to be approved,
2. Recoverable amount of property, plant and provisional rates are adopted considering the
equipment applicable CERC Tariff Regulations.
The recoverable amount of plant and 4. Provisions and contingencies
equipment is based on estimates and The assessments undertaken in recognizing
assumptions regarding in particular the provisions and contingencies have been made
expected market outlook and future cash in accordance with Ind AS 37, ‘Provisions,
flows associated with the power plants. Contingent Liabilities and Contingent Assets’.
Any changes in these assumptions may have The evaluation of the likelihood of the
a material impact on the measurement of contingent events has required best judgment
the recoverable amount and could result in by management regarding the probability
impairment. of exposure to potential loss. Should
3. Revenue circumstances change following unforeseeable
developments, this likelihood could alter.
The Company records revenue from sale of
energy based on tariff rates approved by the
209
2. Non-Current assets - Property, plant & equipment
Tangible assets
210
As at 31 March 2017 ` Lakhs
A Maharatna Company

Land
expenses)
Freehold 43,239.75 - (1,322.62) 44,562.37 - - - - 44,562.37 43,239.75
Leasehold - 82.07 - 82.07 - 2.46 - 2.46 79.61 -
Roads, bridges, 1.03 - - 1.03 0.23 0.23 - 0.46 0.57 0.80
culverts & helipads
Building
Main Plant - 38,173.55 - 38,173.55 - 318.79 - 318.79 37,854.76 -
Others 882.43 1,376.31 - 2,258.74 161.92 146.22 - 308.14 1,950.60 720.51
Temporary erection 314.12 248.72 (17.78) 580.62 175.52 405.10 - 580.62 - 138.60
Water supply, drainage 3.66 - - 3.66 0.98 0.81 - 1.79 1.87 2.68
& sewerage system
Plant and equipment 3,290.57 161,031.79 - 164,322.36 183.93 2,309.73 - 2,493.66 161,828.70 3,106.64

Furniture and fixtures 184.65 2,224.26 (0.01) 2,408.92 15.13 56.49 - 71.62 2,337.30 169.52
Vehicles (Owned) - 0.04 - 0.04 - 0.04 - 0.04 - -
Office equipment 120.34 77.70 0.48 197.56 12.16 17.25 0.25 29.16 168.40 108.18
EDP, WP machines and 92.88 14.10 62.60 44.38 35.29 24.33 32.03 27.59 16.79 57.59
satcom equipment
Construction 122.33 506.36 - 628.69 19.86 70.69 - 90.55 538.14 102.47
equipments
Electrical Installations 130.82 1,098.17 - 1,228.99 8.58 89.03 - 97.61 1,131.38 122.24
Communication 38.20 3.48 (0.11) 41.79 9.00 6.86 - 15.86 25.93 29.20
Equipments
Total 48,420.78 204,836.55 (1,277.44) 254,534.77 622.60 3,448.03 32.28 4,038.35 250,496.42 47,798.18
Deemed
cost As at Deductions/ As at Upto For Deductions/ Upto As at As at
Land
expenses)
Freehold 33,618.87 2,569.34 (7,051.54) 43,239.75 - - - - 43,239.75 33,618.87
Roads, bridges, culverts & 0.53 0.50 - 1.03 - 0.23 - 0.23 0.80 0.53
helipads
Building - Others 406.87 475.56 - 882.43 - 161.92 - 161.92 720.51 406.87
Temporary erection - 314.12 - 314.12 - 175.52 - 175.52 138.60 -
Water supply, drainage & 2.64 1.02 - 3.66 - 0.98 - 0.98 2.68 2.64
sewerage system
Plant and equipment 3,289.92 0.65 - 3,290.57 - 183.93 - 183.93 3,106.64 3,289.92
Furniture and fixtures 132.78 51.87 - 184.65 - 15.13 - 15.13 169.52 132.78
Office equipment 51.03 69.31 - 120.34 - 12.16 - 12.16 108.18 51.03
EDP, WP machines and 95.78 8.92 11.82 92.88 - 45.99 10.70 35.29 57.59 95.78
satcom equipment
Construction equipments 102.52 19.81 - 122.33 - 19.86 - 19.86 102.47 102.52
Electrical Installations 130.69 0.13 - 130.82 - 8.58 - 8.58 122.24 130.69
Communication 30.60 7.60 - 38.20 - 9.00 - 9.00 29.20 30.60
Equipments
Total 37,862.23 3,518.83 (7,039.72) 48,420.78 - 633.30 10.70 622.60 47,798.18 37,862.23
a) The conveyancing of the title to 117.74 acres of freehold land of value ` 4,922.30 lakhs (31 March 2016: 225.88 acres of value ` 7,620.08 lakhs,
1 April 2015: 160.63 acres of value ` 5,101.01 lakhs) in favour of the Company are awaiting completion of legal formalities.
b) Refer Note 13 for information on property, plant and equipment pledged as security by the company.
c) Estimated amount of contracts remaining to be executed on capital account and is not provided for as at 31 March 2017 is ` 1,46,046.95 lakhs
(31 March 2016 is ` 1,36,945.51 lakhs and 1 April 2015 is ` 1,27,199.97 lakhs).
A Maharatna Company
211
2. Property Plant & Equipment
Intangible assets
212
A Maharatna Company

Software 6.04 - - 6.04 0.74 2.11 - 2.85 3.19 5.30

Total 6.04 - - 6.04 0.74 2.11 - 2.85 3.19 5.30

Deemed Additions Deductions/ As at Upto For Deductions/ Upto As at As at
cost as at Adjustments 31.03.2016 01.04.2015 the year Adjustments 31.03.2016 31.03.2016 31.03.2015
01.04.2015
Software 1.05 4.99 - 6.04 - 0.74 - 0.74 5.30 1.05

Total 1.05 4.99 - 6.04 - 0.74 - 0.74 5.30 1.05
Particulars Gross block as at Accumulated Net Block as at

depreciation as at

01.04.2015 01.04.2015 01.04.2015
Land
(including development expenses)
Freehold 33,618.87 - 33,618.87
Roads, bridges, culverts & helipads 5.35 4.81 0.54
Building - Others 595.23 188.37 406.86
Temporary erection 193.40 193.40 -
Water supply, drainage & sewerage system 5.27 2.64 2.63
Plant and equipment 3,475.72 185.80 3,289.92
Furniture and fixtures 187.28 54.51 132.77
Office equipment 84.85 33.82 51.03
EDP, WP machines and satcom equipment 177.36 81.57 95.79
Construction equipments 194.43 91.91 102.52
Electrical Installations 162.57 31.87 130.70
Communication Equipments 37.26 6.66 30.60
Laboratory and workshop equipments 0.18 0.18 -
Software 12.07 11.02 1.05
Total 38,749.84 886.56 37,863.28
A Maharatna Company
3. Non current assets - Capital work-in-progress

Development of land 9,298.63 85.82 2,805.57 - 6,578.88
Roads, bridges, culverts & helipads 210.19 247.05 - - 457.24
Buildings
Main plant 51,586.76 3,928.18 (3,150.41) 38,173.55 20,491.80
Others 6,579.50 4,191.64 2,952.92 1,376.31 6,441.91
Water supply, drainage and sewerage system 11.86 23.30 - - 35.16
Plant and equipment 410,739.41 73,088.81 (12,083.29) 161,005.93 334,905.58
Furniture and fixtures - 76.67 (2,011.46) 2,055.71 32.42
Electrical installations 20,930.95 2,442.60 5,404.99 1,063.77 16,904.79
511,817.77 90,266.41 (6,305.51) 203,899.10 404,490.59
Survey, investigation, consultancy and 8,528.09 - 2,132.02 - 6,396.07
supervision charges
Precommissiong Expenses (net) 395.99 3,009.60 3,068.10 - 337.49
Others expenses attributable to Project (Adj) 2,365.08 - 590.09 - 1,774.99
Expenditure during construction period - 53,452.22 - - 53,452.22
(net)*
Less: Allocated to related works - 53,452.22 - - 53,452.22
523,106.93 93,276.01 (515.30) 203,899.10 412,999.14
Total 538,944.55 99,354.90 (515.30) 203,899.10 434,915.65
213
A Maharatna Company
Particulars Deemed Deductions/ As at

cost as at
Development of land 10,662.40 114.10 1,477.87 - 9,298.63
Roads, bridges, culverts & helipads 6.42 204.27 - 0.50 210.19
Buildings
Main plant 42,168.56 9,418.20 - - 51,586.76
Others 5,831.53 1,073.31 7.38 317.96 6,579.50
Water supply, drainage and sewerage system 10.92 0.94 - - 11.86
Plant and equipment 338,442.16 72,297.25 - - 410,739.41
Electrical installations 18,218.90 2,712.05 - - 20,930.95
425,547.79 88,171.02 1,483.52 417.52 511,817.77
Survey, investigation, consultancy and 8,528.09 - - - 8,528.09
supervision charges
Precommissiong Expenses (net) - 395.99 - - 395.99
Others expenses attributable to Project 2,366.66 - 1.58 - 2,365.08
construction
Expenditure during construction period - 49,739.63 - - 49,739.63
(net)*
Less: Allocated to related works - 49,739.63 - - 49,739.63
436,442.54 88,567.01 1,485.10 417.52 523,106.93
Total 450,263.52 90,583.65 1,485.10 417.52 538,944.55
a) The Company capitalised the borrowing costs in the capital work-in-progress (CWIP). Exchange differences capitalised are
disclosed in the ‘Addition’ column of CWIP and allocated to various heads of CWIP in the year of capitalisation through
‘Deductions/Adjustment’ column of CWIP. Exchange differences in respect of assets already capitalised are disclosed in
the ‘Deductions/Adjustments’ column of CWIP. Asset-wise details of exchange differences and borrowing costs included
in the cost of major heads of CWIP through ‘Addition’ or ‘Deductions/Adjustments’ column are given below:
214
A Maharatna Company
For the year ended 31st March 2017 For the year ended 31st March 2016
Exchange Borrowing costs Exchange Borrowing costs
Difference included in CWIP Difference included in CWIP
included in CWIP included in CWIP
Building:
Main Plant - 3,815.97 - 3,875.76
Others - 608.33 (68.06) 530.69
Plant & Machinery - 36,062.91 - 33,144.99
MGR Track and Signalling system - 1,231.28 - 928.16
Electrical Installation - 1,735.23 - 1,619.47
Others including pending allocation - 41.11 - 505.32
Total - 43,494.83 (68.06) 40,604.39
b) Depreciation/amortisation of tangible and intangible assets for the year is allocated as given below:
` Lakhs
For the year For the year

ended ended
31-Mar-17 31-Mar-16
Transferred to expenditure during construction period (net) - Note 25 601.30 634.02
Total 601.30 634.02
c) Pre-commissioning expenditure for the year amount to ` 4,010.52 lakhs (Previous year ` 397.57 lakhs) after adjustment
of pre-commissioning sales of ` 1,000.92 lakhs (Previous Year ` 1.58 lakhs) resulted in net precommissioning expenditure
of ` 3,009.60 lakhs (Previous year ` 395.99 lakhs)
4. Other Non Current Assets

` Lakhs
31.03.2017 31.03.2016 01.04.2015
Capital advances
Unsecured
Covered by bank guarantee 3,282.42 16,853.35 14,837.17
Others 2,765.46 2,905.20 3,240.54
6,047.88 19,758.55 18,077.71
Deposit with Govt. Department 313.11 6,517.55 6,504.44
Advance tax & tax deducted at source 315.61 278.54 242.48
Total 6,676.60 26,554.64 24,824.63
Disclosure with respect to related parties is made in Note 27.
215
A Maharatna Company
5. Non-current assets - Deferred tax assets

` Lakhs
31.03.2017 31.03.2016 01.04.2015
Deferred tax asset

Difference in tax profit and profit as per MAT 199.38 - -
Less: Deferred liability for Rate Regulated Account 199.38 - -
Total - - -
a) For the period commencing from 1 April 2014, CERC Regulations, 2014 provide for grossing up of the return on equity
based on effective tax rate for the financial year based on the actual tax paid during the year on the generation and
transmission income. Deferred liability for deferred tax asset for the year will be reversed in future years when the
related deferred tax asset forms part of current tax.
b) Movement in deferred tax balances
` Lakhs
31.03.2017 31.03.2016 01.04.2015
Difference in tax profit and profit as per MAT

Opening Balance - - -
Recognised in profit or loss 199.38 - -
Tax assets 199.38 - -
Less: Deferred liability for rate regulated account 199.38 - -
Net tax assets - - -
6. Current assets - Inventories

` Lakhs
31.03.2017 31.03.2016 01.04.2015
Coal 4.14 - -
Fuel Oil 461.86 - -
Stores and Spares 27.28 - -
Chemicals & consumables 21.17 - -
Steel 822.08 - -
Others 57.35 - -
Total 1,393.88 - -
a) Inventory items have been valued as per accounting policy no. C.6 (Note 1).
b) There is no material in transit as on reporting date.
c) Other includes electrcial consumables.
216
A Maharatna Company
7. Current assets - Trade receivables

` Lakhs
31.03.2017 31.03.2016 01.04.2015
Trade receivables
Unsecured, considered good 5,277.98 - -
Total 5,277.98 - -
8. Current assets - Cash and cash equivalents

` Lakhs
31.03.2017 31.03.2016 01.04.2015
Balances with banks

Current accounts 439.39 5,207.55 375.37
Deposits with original maturity upto three months (including interest 100.06 7,000.91 9,021.61
accrued)
Cheques in hand 2.04 - 2.48
Total 541.49 12,208.46 9,399.46
9. Current assets - Other financial assets

` Lakhs
31.03.2017 31.03.2016 01.04.2015
Unbilled revenue 3,408.69 - -
Unbilled revenue represents amount billed to the beneficiaries after 31 March for energy sales.
10. Current assets - Other current assets

` Lakhs
31.03.2017 31.03.2016 01.04.2015
Deposits with Government Authorities 8,221.06 - -

Other recoverable 116.18 116.18 116.18
Unsecured Advances
Employees 39.96 43.60 1.40
Contractors & suppliers 1,021.85 857.64 1,276.73
Others 163.91 1,921.26 126.16
Total 9,562.96 2,938.68 1,520.47
a) Other recoverable include amount recoverable from contractors and other parties towards hire charges, rent/
electricity etc.
b) Other Advances represents advance insurance premium paid as at 31 March 2017 and payment of entry tax in advance
as at 31 March 2016 and 1 April 2015.
217
A Maharatna Company
11. Equity Share capital

` Lakhs
31.03.2017 31.03.2016 01.04.2015
Authorised
2,50,00,00,000 Equity shares of par value ` 10/- each (1,60,60,00,000 Equity
shares of par value ` 10/- each as at 31 March, 2016 and 1 April 2015) 250,000.00 160,600.00 160,600.00
1,58,46,13,850 shares of par value ` 10/- each (1,58,46,13,850 shares of
par value ` 10/- each as at 31 March 2016 and as at 1 April 2015) 158,461.39 158,461.39 158,461.39
During the year, the Company has neither issued nor bought back any shares.
share holding at the meetings of shareholders. In the event of liquidation of the Company, the holders of the equity
shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held by the shareholders.
c) Details of shareholders holding more than 5% shares in the Company as at:
` Lakhs
Particulars As at 31.03.2017 As at 31.03.2016 As at 31.03.2015
No. of shares % No. of shares % No. of shares %
NTPC Ltd. 1,172,613,850 74.0 1,172,613,850 74.0 1,172,613,850 74.0
Ministry of Railways 412,000,000 26.0 412,000,000 26.0 412,000,000 26.0
12. Other equity

` Lakhs
31.03.2017 31.03.2016 01.04.2015
Share application money pending allotment 24,793.00 1,564.00 -
Retained earnings 4,445.02 3,679.11 3,681.66
Total 29,238.02 5,243.11 3,681.66
For the year ended

31.03.2017 31.03.2016
a) Share application money pending allotment Reconciliation
Opening balance 1,564.00 -
Add: Share application money received during the year 24,793.00 1,564.00
Less: Shares application money refunded 1,564.00 -
Share application money pending allotment has been received from
NTPC Ltd. 24,793.00 1,564.00
24,793.00 1,564.00
The shares are likely to be allotted in the financial year 2017-18.
The authorised share capital of the company is sufficient to cover the share capital amount on allotment of shares out
of the above share application money.
No amount is refundable out of above share application money and no interest is payable.
218
A Maharatna Company
` Lakhs
For the year ended
31.03.2017 31.03.2016
b) Retained earnings
Opening balance 3,679.11 3,681.66
Add: Profit/ (Loss) for the year from Statement of Profit and Loss 765.91 (2.55)
13. Non current liabilities -Borrowings

` Lakhs
31.03.2017 31.03.2016 01.04.2015
Term loans
From Others
Secured
Rupee loans 453,947.70 394,149.73 304,289.04
Less: Interest Accrued 6,456.12 5,306.57 4,471.81
Total 447,491.58 388,843.16 299,817.23
a) Secured by Equitable mortgage/hypothecation of all present and future fixed and movable assets of Nabinagar TPP
(4x250 MW), as first charge, ranking pari pasu with charge created with PFC and with REC.
b) The company has initial term loan facility of ` 3,74,675.00 lakhs (PFC : ` 2,24,800.00 lakhs + REC: ` 1,49,875.00 lakhs).
The company has fully utilised the borrowing limit. Interest on initial term loan is payable at the applicable three year
“AAA” Bond yield rate plus agreed margin. The Moratorium period for the project is up to 6 months from the COD
of the station. The facility is available for a period of 48 months from the date of documentation or till the actual
completion of the project plus 06 months (moratorium period), whichever is earlier. The repayment schedule is for a
period of 15 years, beginning after 06 months from COD of the station, in 60 quarterly instalments.”
c) The company has 2nd term loan agreement of ` 25,325.00 lakhs from PFC. The company has fully utilised the borrowing
limit. The interest rate on this facility is @ 9.36% p.a. with repayment schedule of 15 years, beginning after 06 months
from COD of the station, in 60 quarterly instalments.
d) The company has taken 3rd term loan of ` 1,59,860.00 lakhs from PFC. The company has drawn ` 47,491.58 lakhs from
this facility of loan till 31st March 2017. The interest rate on this facility is @ 9.36% p.a. with repayment schedule of 15
years, beginning after 06 months from COD of the station, in 60 quarterly instalments.
e) There has been no defaults in repayment of the loan or interest thereon as at the end of the year.
f) Rupee Loan has been fair valued at Amortised cost along with interest accrued thereon and thereafter accrued
portion has been disclosed in other current financial liabilities.
14. Non-current liabilities - Other financial liabilities

` Lakhs
31.03.2017 31.03.2016 01.04.2015
Other liabilities
Total 3,777.88 8,546.00 13,412.91
a) Payable for capital expenditure represents liability towards equipment supplier and erection vendors pending
b) Refer Note No. 27 for amounts due to related party.
219
A Maharatna Company
15. Current liabilities - Trade payables

` Lakhs
31.03.2017 31.03.2016 01.04.2015
For goods and services 2,982.57 6.099.17 6,336.59
a) Refer Note No. 27 for amounts due to related party.
b) Information in respect of micro and small enterprises as at 31st March 2017 is disclosed in Note 40.
16. Current liabilities - Other financial liabilities
` Lakhs
31.03.2017 31.03.2016 01.04.2015
Interest accrued but not due on borrowings 6,456.12 5,306.57 4,471.81
Other payables
Deposits from contractors 111.40 39.68 57.60
NTPC Ltd 1,239.35 638.33 418.39
Ministry of Railways - - 13.03
Others 125.10 84.74 51.90
Total 56,895.73 49,189.36 30,835.77
a) Revision of pay scales of the employees of the NTPC Limited posted on secondment basis to the company is due w.e.f
1st January 2017. Pending acceptance of the recommendations of the 3rd Pay Revision Committee of Department of
Public Enterprises, provision of ` 181.63 lakhs (previous year Nil) towards the payments due to the employees of NTPC
Ltd. has been made on an estimated basis.
b) Payable for capital expenditure represents liability towards equipment supplier and erection vendors pending
c) Other payables - others include stale cheque, administration expenses payable etc.
d) Refer Note No. 27 for amounts due to related party.
17. Current liabilities - Other current liabilities
` Lakhs
31.03.2017 31.03.2016 01.04.2015
Other payables
Others* 68.20 - -
Total 630.79 277.96 186.34
* Others includes material received on loan.
18. Current liabilities - Provisions
` Lakhs
31.03.2017 31.03.2016 01.04.2015
Provisions for obligations incidental on acquisition 11,947.68 11,281.95 11,017.63
Shortages in fixed assets pending investigation 0.80 0.80 0.43
Total 11,948.48 11,282.75 11,018.06
220
A Maharatna Company
Disclosure as per Indian Accounting Standard AS 37 on ‘Provisions, Contingent Liabilities and Contingent Assets’
Movements in provisions:
` Lakhs
31.03.2017 31.03.2016
Provisions for obligations incidental on land acquisition
Add: Additions during the year 701.21 264.32
Less: Amounts used during the year 35.48 -
Less: Reversal / adjustments during the year - -
Shortages in fixed assets pending investigation

Carrying amount at the beginning of the year 0.80 0.42
Add: Additions during the year - 0.38
Less: Amounts used during the year - -
Less: Reversal / adjustments during the year - -
Carrying amount at the end of the year 0.80 0.80
Provision for obligations incidental to land acquisition includes expenditure on rehabilitation & resettlement (R&R) including
the amounts payable to the project affected persons (PAPs) towards land, expenditure for providing community facilities
and expenditure in connection with environmental aspects of the project. Company has estimated the provision based on
the Rehabilitation Action Plan (RAP) approved by the board/competent authority. The outflow of said provision is expected
to be incurred immediately on fulfilment of conditions by the land oustees/ receipts of directions of the local/government
authorities.
18A. Current liabilities - current tax liabilities (net)
` Lakhs
31.03.2017 31.03.2016 01.04.2015
Current tax (net of advance tax) 191.36 - -
19. Regulatory deferral account credit balances

` Lakhs
31.03.2017 31.03.2016 01.04.2015
Exchange differences 659.06 506.91 121.41
Regulatory deferral account balances have been accounted in line with Accounting policy no. C.4. Refer Note 30 for
detailed disclosures.
` Lakhs
ended ended
31.03.2017 31.03.2016
Energy sales (including electricity duty) 8,686.67 –
Energy sales represents fixed charge bill of ` 8,686.67 lakhs on East Central Railway (` 7,818.00 lakhs), North Bihar Power
Distribution Company Limited (` 364.84 lakhs) and South Bihar Power Distribution Company Limited (` 503.83 lakhs) after
Commercial Operation Date (COD) based on Declared Capacity (DC).
221
A Maharatna Company
21. Other Income

` Lakhs
ended ended
31.03.2017 31.03.2016
Interest from
Contractors 66.20 267.00
Others (refer note a below) 24.96 6.12
Net gain in foreign currency transactions & translations 152.16 385.49
Miscellaneous income (refer note b below) 52.61 72.87
Profit on disposal of Fixed Assets 0.07 0.03
296.00 731.51
Less: Transferred to expenditure during construction period (net)- Note 25 103.29 345.99
Total 192.71 385.52
a) Interest from other includes interest on Income Tax refund.
b) Miscellaneous income includes income from Hire Charges, rent received, EMD forfeited etc.
22. Employee Benefit Expense
` Lakhs
ended ended
31.03.2017 31.03.2016
4,143.31 3,028.77
Less: Transferred to expenditure during construction period (net)- Note 25 3,289.86 3,027.85
Total 853.45 0.92
In accordance with Accounting Policy no. C.13 (Note 1), an amount of ` 514.74 lakhs (previous year ` 417.03 lakhs) towards
year ` 114.13 lakhs) towards leave & other benefits, are paid /payable to the holding company (NTPC Ltd) and included in
‘Employee Benefits’.
In accordance with Accounting Policy no. C.13 (Note 1), an amount of ` 8.54 lakhs (previous year ` 7.33 lakhs) towards
year ` 3.56 lakhs) towards leave & other benefits, are paid /payable to the other promoting partner (Indian Railways) and
included in ‘Employee Benefits’.
23. Finance Costs
` Lakhs
ended ended
31.03.2017 31.03.2016
Interest
Rupee term loans 44,869.97 38,348.21
Less: Interest on short term deposits 177.32 189.92
44,692.65 38,158.29
Financial liabilities measured at amortised cost- Vendor liabilities 1,555.21 2,256.18
Interest on Income Tax 12.60 -
46,260.46 40,414.47
Less: Transferred to expenditure during construction period (net) - Note 25 43,317.50 40,414.47
Total 2,942.96 -
222
A Maharatna Company
24. Other Expenses

` Lakhs
ended ended
31.03.2017 31.03.2016
Power charges 3,991.23 4,085.57
Less: Recovered from contractors & 5.90 5.02
employees
3,985.33 4,080.55
Water Charges 347.53 -
Rent 6.85 18.10
Machinery 115.70 36.28
Others 592.78 166.12
Insurance 118.96 2.34
License Fee 22.25 2.80
Inland Travel 165.11 182.75
Foreign Travel 0.46 0.44
Less: Receipt from sale of tenders 0.51 0.48
36.04 33.98
Security expenses 791.98 894.00
Less: Recoveries 0.31 0.03
4.89 0.42
Hire charge of vehicles 216.88 163.98
Loss on disposal/write-off of fixed assets - 0.56
7,463.53 6,010.54
Less: Transferred to expenditure during
construction period (net) - Note 25 6,346.85 6,009.28
Provision for shortage in fixed assets - 0.38
1,116.68 1.64
a) Miscellaneous expenses includes
Horticulture expenses, hiring of DG
set etc.
b) Details in respect of payment to
auditors:
Audit fee 1.00 0.50
Reimbursement of service tax - 0.07
Total 1.00 0.57
c) Repairs & maintenance: machinery includes inventories others recognised as expense during the year amounting to
` 26.80 Lakh (Previous Year nil)
223
A Maharatna Company
25. Expenditure During Construction Period (net)

` Lakhs
ended ended
31.03.2017 31.03.2016
A. Employee benefits expense
Total (A) 3,289.86 3,027.85
B. Finance costs
Interest on
Rupee term loans 41,939.61 38,348.21
Less: Interest on short term deposits 177.32 189.92
Unwinding of discount on account of vendor liabilities 1,555.21 2,256.18
Total (B) 43,317.50 40,414.47
C. Depreciation and amortisation 601.30 634.02
D. Generation, administration & other expenses
Power charges 3,885.78 4,080.56
Water charges 347.53 -
Rent 4.53 18.10
Machinery 44.72 5.03
Others 289.97 197.72
Insurance 1.70 2.35
License Fee 22.25 2.80
Security expenses 622.11 894.00
EDP Hire and other charges 3.09 8.98
Total (D) 6,346.85 6,009.28
E. Less: Other income
Contractors 64.84 273.12
Total (E) 103.29 345.99
Grand total (A+B+C+D-E) 53,452.22* 49,739.63*
* Carried to Capital work-in-progress - (Note 3)
224
A Maharatna Company
26. First-time Adoption of Indian Accounting Standard (Ind AS)

The company has prepared its first Financial Statements in accordance with Ind AS for the year ended 31 March 2017.
For periods up to and including the year ended 31 March 2016, the Company prepared its financial statements in
accordance with Indian GAAP, including accounting standards notified under the Companies (Accounting Standards)
Rules, 2006 (as amended). The effective date for Company’s Ind AS Opening Balance Sheet is 1 April 2015 (the date of
transition to Ind AS).
Financial Statements according to Ind AS. These accounting principles and measurement principles must be applied
Statements.
i) Property, plant and equipment & Intangible assets
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and
equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the
previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for
de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38, Intangible
Assets. Accordingly, the company has elected to measure all of its property, plant and equipment and intangible
assets at their previous GAAP carrying value.
ii) Long term foreign currency monetary items
The Company has elected to continue the policy adopted for accounting for exchange differences arising from
translation of long-term foreign currency monetary items recognised in the financial statements for the period
ending immediately before the beginning of the first Ind AS financial reporting period as per the Indian GAAP.
Reconciliation of equity as at 1 April 2015 and as at 31 March 2016
` Lakhs
1 April 2015 31 March 2016

GAAP* GAAP*
ASSETS
Non-current assets
Property, plant and equipment 34.a 37,862.23 - 37,862.23 47,798.18 - 47,798.18
Capital work in progress 34.a, (a) 450,263.52 - 450,263.52 537,069.41 1,875.14 538,944.55
Other Intangible assets 1.05 - 1.05 5.30 - 5.30
Financial assets
225
A Maharatna Company
1 April 2015 31 March 2016

GAAP* GAAP*
Loans - - - - - -
Other non-current assets 24,824.63 - 24,824.63 26,554.64 - 26,554.64
Current Assets
Financial assets
Cash and cash equivalents 9,399.46 - 9,399.46 12,208.46 - 12,208.46
Loans - - - - - -
Other current assets 1,520.47 - 1,520.47 2,938.68 - 2,938.68
Total Assets 523,871.36 - 523,871.36 626,574.67 1,875.14 628,449.81
Equity
Other equity (a) (79.77) 3,761.43 3,681.66 1,481.69 3,761.42 5,243.11
Liabilities
Borrowings 299,817.23 - 299,817.23 390,729.44 (1,886.28) 388,843.16
Other financial liabilities 34.b, (a) 17,174.34 (3,761.43) 13,412.91 8,546.00 - 8,546.00
Other non-current liabilities - - - - - -
Rate regulated asets/(liabilities) 121.41 - 121.41 506.91 - 506.91
Current liabilities
Trade payables 34.b 6,336.59 - 6,336.59 6,099.17 - 6,099.17
Other financial liabilities 34.b 30,835.77 - 30,835.77 49,189.36 - 49,189.36
Other current liabilities 186.34 - 186.34 277.96 - 277.96
Provisions 11,018.06 - 11,018.06 11,282.75 - 11,282.75
Total equity and liabilities 523,871.36 (0.00) 523,871.36 626,574.67 1,875.14 628,449.81
Reconciliation of profit for the year ended 31 March 2016
` in Lakhs
Note Previous GAAP* Adjustments Ind ASs
INCOME
Other income 385.52 - 385.52
Total Income 385.52 - 385.52
EXPENDITURE
Employee benefits expense 0.92 - 0.92
Finance expenses a - - -
Depreciation and amortization 0.02 - 0.02
Generation, Administration and Other expenses 1.64 - 1.64
Total Expenses 2.58 - 2.58
Profit before tax and Rate Regulated Activities(RRA) 382.94 - 382.94
Add: Regulatory Income/(Expense) (385.49) - (385.49)
Profit before tax (2.55) - (2.55)
Profit after tax (2.55) - (2.55)
Other comprehensive income for the year - - -
Total comprehensive income for the year (2.55) - (2.55)
* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes
of this note.
226
A Maharatna Company

` Lakhs
Note 31 March 2016 1 April 2015
Adjustments:
Recognition of financial assets/liabilities at amortised cost a 3,761.42 3,761.42
(a) Financial liabilities
Under Indian GAAP, liabilities such as payable for capital expenditure are recorded at cost.
However, under Ind AS, liabilities in which the Company has a contractual obligation to deliver cash are classified as
financial liabilities and recorded at amortized cost. Therefore, such financial liabilities have been discounted to present
value since they do not carry any interest. The upfront benefit on transition date due to the discounting has been
adjusted against the retained earnings. Further, interest cost on unwinding of discount has been capitalized to the cost
of property, plant and equipment where such interest cost can be capitalized in accordance with Ind AS 23 ‘Borrowing
cost’ otherwise charged off to statement of profit or loss.
The effect of the adjustments resulted in reduction of the value of financial liabilities by ` 3,761.42 lakhs along with
corresponding increase in retained earnings as on the transition date. During the year ended 31st March 2016, value of
financial liabilites was reduced by ` 1,875.14 lakhs by corresponding increase in statement of profit and loss (Finance
Cost) by ` 2,256.18 lakhs and reduction in Capital Work In Progress by ` 381.04.
Finance Cost has been capitalised being expenditure during construction period.
(b) Statement of cash flows
The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.
27. Disclosure as per Indian Accounting Standard - 24 on ‘Related Party Disclosures’
a) List of Related parties:
i) Parent Company:
NTPC Limited
ii) Key Managerial Personnel (KMP):
Shri Subhash Chandra Pandey Non-Executive Chairman
Shri Sudhir Garg Non-Executive Director
Shri Karan Singh Garbyal Non-Executive Director
Ms. Sangeeta Bhatia Non-Executive Director
Shri K.K. Singh Chief Executive Officer
(Apr-15 to 26-Apr-15)
Shri Rajkumar Chief Executive Officer
(27-Apr-15 to 17-Jul-16)
Shri C Sivakumar Chief Executive Officer
w.e.f. 18-Jul-16
Shri Dipankar Nandy Chief Finance Officer
w.e.f. 25-Jun-15
iii) Joint Venture of parent company:
Utility Powertech Ltd.
iv) Entities under the control of the same government:
The Company is a subsidiary of Central Public Sector Undertaking (CPSU) controlled by Central Government
by holding majority of shares (refer Note 8). Pursuant to Paragraph 25 & 26 of Indian Accounting Standard
24, entities over which the same government has control or joint control of, or significant influence, then the
reporting entity and other entities shall be regarded as related parties. The Company has applied the exemption
available for government related entities and have made limited disclosures in the financial statements. Such
entities with which the Company has significant transactions include but not limited to Central Coalfields Ltd.,
BHEL Ltd., SAIL Ltd., Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., NBCC Ltd, ERLDC, PGCIL,
Rashtriya Ispat Nigam Ltd, Rites Limited, Durgapur Chemicals Ltd, Bridge And Roof Co. (India) Ltd., Central
Industrial Security Forces, etc.
227
A Maharatna Company
b) Transactions with the related parties are as follows:
` Lakhs
i) Transaction with Parent Company
ended ended
31.03.2017 31.03.2016
Consultancy services received 106.54 91.58
Equity contribution received 24,793.00 1,564.00
Equity contribution refunded 1,564.00 0.00
Deputation of Employees 533.31 98.54
` Lakhs
ii) Compensation to Key Managerial Personnel
ended ended
31.03.2017 31.03.2016
Short term employee benefits 76.43 108.53
Post employment benefits 15.96 16.84
iii) Transactions with joint ventures of parent company
` Lakhs
Name of Company Nature of Transaction For the year For the year
ended ended
31.03.2017 31.03.2016
Utility Powertech Ltd. Operation and maintenance services 539.39 299.91
iv) Transactions with the related parties under the control of the same government
` Lakhs
Name of Company Nature of Transaction For the year For the year
ended ended
31.03.2017 31.03.2016
BHEL Ltd. Procurement & erection of plant & 12,280.74 14,093.25
machinery
Power Grid Corporation Of India Ltd. Transmission charges paid 3,787.90 4,303.77
SAIL Ltd. Purchase of capital goods 3,052.60 4,533.47
Central Coalfields Ltd. Purchase of coal 2,317.63 -
Rites Limited Deposit Work for Coal transportation 5,960.80 1,132.10
system
National Buildings Construction Civil construction 2,329.80 -
Corporation Ltd.
The Oriental Insurance Company Ltd. Insurance services 119.34 1.76
Hindustan Petroleum Corporation Ltd. Puchase of fuel 424.74 -
Bridge And Roof Co. (India) Ltd. Purchase of capital goods 42.64 154.00
BEML Ltd. 53.55 453.24
228
A Maharatna Company
c) Outstanding balances with related parties are as follows:
` Lakh
Amount payable to parent company
NTPC Ltd. 1,239.35 638.33 418.39
Amount payable to joint venture of parent company
Utility Powertech Ltd. 145.87 43.23 23.42
Amount recoverable from government related
entities
Bharat Heavy Electricals Ltd. Capital 3,194.30 13,948.20 12,245.57
Advance
Bharat Heavy Electricals Ltd. Others - - 135.75
Rites Limited Capital 107.91 1,065.70 824.20
Advance
Steel Authority Of India Ltd. Capital - 325.81 1,011.51
Advance
Central Coalfields Ltd. Capital 68.30 102.40 -
Advance
Central Coalfields Ltd. Others 14.26 177.60 -
Hindustan Petroleum Corporation Ltd. Others 122.02 - -
The Oriental Insurance Co. Others 163.53 - -
BEML Capital - - 2.66
Advance
BEML Others 2.10
Rashtriya Ispat Nigam Ltd. Capital - 12.20 12.20
Advance
Bharat Sanchar Nigam Ltd. Others - 0.23 0.18
National Safety Council Others - - 0.85
Bharat petroleum Corporation Ltd. Capital 310.30 - -
Advance
Bharat petroleum Corporation Ltd. Others 277.31 593.53 48.23
Amount payable to government related entities
Bharat Heavy Electricals Ltd. 28,458.33 37,277.16 34,153.20
Rites Limited 1,196.84 12.17 12.17
Power Grid Corporation Of India Ltd. 6.36 183.45 293.09
Steel Authority Of India Ltd. 145.73 203.37 155.14
National Buildings Construction Corporation Ltd. 726.63 - -
Hindustan Petroleum Corporation Ltd. 4.05 - -
The Oriental Insurance Co. - 2.35 -
BEML 0.34 447.94 0.09
Bridge And Roof Co. (India) Ltd. 2.11 89.61 47.68
Bharat Sanchar Nigam Ltd. 6.24 0.42 -
Bharat petroleum Corporation Ltd. 8.02 - -
229
A Maharatna Company
d) Terms and conditions of transactions with the related parties

(1) Transactions with the related parties are made on normal commercial terms and conditions and at market rates.
(2) The Company is assigning jobs on contract basis, for sundry work in plant to M/s Utility Powertech Ltd (UPL), a
50:50 joint venture between NTPC LImited and Reliance Infrastructure Ltd. UPL inter-alia undertakes jobs such as
overhauling, repair, refurbishment of various mechanical and electrical equipments of plant. The Company has
entered into Power Station Maintenance Agreement with UPL from time to time. The rates are fixed on cost plus
basis after mutual discussion and after taking into account the prevailing market conditions.
(3) NTPC Limited is seconding its personnel to the company as per the terms and conditions agreed between the
companies, which are similar to those applicable for secondment of employees to other companies and institutions.
The cost incurred by NTPC Limited towards superannuation and employee benefits are recovered from the company.
28. Fair Value Measurements
(a) Financial instruments by category
All financial assets and liabilities viz. cash and cash equivalents, trade payables, interest accrued but not due on
borrowings, employee related liabilities, payable to related parties, deposits from contractors and suppliers and
payable for expenses are measured at amortized cost.
(b) Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values
are disclosed in the financial statements.
` Lakhs
Level 2
Liabilities which are measured at amortised cost for which fair 31 March 31 March 1 April 2015
values are disclosed 2017 2017
Financial liabilities:
Rupee Term Loan* 500,295.00 422,907.00 323,983.00
Payable for capital expenditure* 52,065.02 51,207.68 38,541.44
Total 552,360.02 474,114.68 362,524.44
* Above fair values are based on the KPMG valuation report.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.
If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
(c) Fair value of financial assets and liabilities measured at amortised cost
` Lakhs

Carrying Fair value Carrying Fair value Carrying Fair value
amount amount amount
Rupee term loans 447,491.58 500,295.00 388,843.16 422,907.00 299,817.23 323,983.00
Payable for capital 52,134.81 52,065.02 51,427.17 51,207.68 39,052.98 38,541.44
expenditure
499,626.39 552,360.02 440,270.33 474,114.68 338,870.21 362,524.44
The carrying amounts of short term trade payables, capital creditors, interest accrued but not due on borrowings,
employee related liabilities, payable to related parties, deposits from contractors and suppliers and cash and cash
equivalents are considered to be the same as their fair values, due to their short-term nature.
The fair values for Rupee term loans and payable for capital expenditure were calculated based on cash flows
discounted using a current lending rate. They are classified as level 2 fair values in the fair value hierarchy due to
the inclusion of unobservable inputs.
230
A Maharatna Company

The Company’s principal financial liabilities comprise loans in domestic currency and payables for capital expenditure.
The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial
assets include cash and short-term deposits.
The Company is exposed to the following risks from its use of financial instruments:
- Credit risk
- Liquidity risk
- Market risk
This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives,
policies and processes for measuring and managing risk.
Credit risk
meet its contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from trade
receivables, loans & advances, cash & cash equivalents and deposits with banks and financial institutions.
Trade receivables and unbilled revenue
The Company primarily sells electricity to bulk customers comprising, mainly railways owned by central governent and
state electrical utilities owned by State Government. The risk of default in case of power supplied to these state owned
companies is considered to be insignificant. A default occurs when in the view of management there is no significant
possibility of recovery of receivables after considering all available options for recovery.
Cash and cash equivalents and Deposits with banks
The company has banking operations with State Bank of India which is a scheduled banks and owned by Government.
The risk of defalut with state controlled entities is considered to be insignificant.
(i) Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit
risk at the reporting date was:

` Lakhs
2017 2016 2015
Financial assets for which loss allowance is measured using
Lifetime Expected Credit Losses (ECL)
Trade Receivable 5,277.98 - -
Other financial assets (Unbilled Revenue) 3,408.69 - -
Financial assets for which loss allowance is measured using 12
months Expected Credit Losses (ECL)
Cash and cash equivalent 541.49 12,208.46 9,399.46
Total 9,228.16 12,208.46 9,399.46
(ii) Provision for expected credit losses
Financial assets for which loss allowance is measured using 12 month expected credit losses
The company has assets where the counter- parties have sufficient capacity to meet the obligations and where
the risk of default is very low. Hence based on historic default rates, the Company believes that, no impairment
allowance is necessary in respect of above mentioned financial assets.
231
A Maharatna Company
Financial assets for which loss allowance is measured using life time expected credit losses
The Company has customers (State government utilities) with capacity to meet the obligations and therefore the
risk of default is negligible or nil. Further, management believes that the unimpaired amounts that are past due
by more than 30 days are still collectible in full, based on historical payment behaviour and extensive analysis of
customer credit risk. Hence, no impairment loss has been recognised during the reporting periods in respect of
trade receivables.
(iii) Ageing analysis of trade receivables ` Lakhs

Ageing Not due 0-30 days 31-60 days 61-90 days 91-120 days Total
past due past due past due past due
31 March 2017 - 3,408.69 1,869.29 - - 5,277.98
31 March 2016 - - - - - -
1 April 2015 - - - - - -
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to
managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities
when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Company’s reputation.
The Company has an appropriate liquidity risk management framework for the management of short, medium and
long term funding and liquidity management requirements. The Company manages liquidity risk by maintaining
adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast
and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The Company’s treasury department is responsible for managing the short term and long term liquidity requirements
of the Company. Short term liquidity situation is reviewed daily by Treasury. The Board of directors has established
policies to manage liquidity risk and the Company’s treasury department operates in line with such policies.Any
breaches of these policies are reported to the Board of Directors. Long term liquidity position is reviewed on a
regular basis by the Board of Directors and appropriate decisions are taken according to the situation.
Typically the Company ensures that it has sufficient cash on demand to meet expected operational expenses for
a period of 60 days, including the servicing of financial obligations, this excludes the potential impact of extreme
circumstances that cannot reasonably be predicted, such as natural disasters.
(i) Financing arrangements
The company had access to the following undrawn borrowing facilities at the end of the reporting period:
` Lakhs
2017 2016 2015
Floating-rate borrowings
Term loans 105,912.30 5,850.27 70,385.96
232
A Maharatna Company
(ii)
Maturitites of financial liabilities
The following are the contractual maturities of derivative and non-derivative financial liabilities, based on contractual
cash flows:
31 March 2017
` Lakhs
3 months or 3-12 months 1-2 years 2-5 years More than 5 Total
less years
liabilities
Rupee Term Loan - - - 89,498.32 357,993.26 447,491.58
Trade Payables 2,982.57 - - - - 2,982.57
Payable for Capital Expenditure 44,768.33 3,588.62 4,419.15 - - 52,776.10
Interest accrued but not due on 6,456.12 - - - - 6,456.12
borrowings
Deposits from contractors and 111.40 - - - - 111.40
others
Payable to related parties 1,239.35 - - - - 1,239.35
Others 125.10 - - - - 125.10
Total 56,289.70 3,588.62 4,419.15 89,498.32 357,993.26 511,789.05
31 March 2016
` Lakhs
less years
liabilities
Rupee Term Loan - - - 51,845.76 336,997.40 388,843.16
Trade Payables 6,099.17 - - - - 6,099.17
Payable for Capital Expenditure* 36,354.35 6,526.82 8,595.97 1,836.31 - 53,313.45
borrowings
others
Payable to related parties 638.33 - - - - 638.33
Others 84.74 - - - - 84.74
Total 48,761.71 6,526.82 8,595.97 53,682.07 336,997.40 454,563.97
233
A Maharatna Company
1 April 2015
` Lakhs
less years
liabilities
Rupee Term Loan - - - 19,987.82 279,829.41 299,817.23
Trade Payables 6,336.59 - - - - 6,336.59
Payable for Capital Expenditure* 22,070.50 3,569.55 8,696.68 8,477.66 - 42,814.40
borrowings
others
Payable to related parties 431.42 - - - - 431.42
Others 51.90 - - - - 51.90
Total 33,602.79 3,569.55 8,696.68 28,465.48 279,829.41 354,163.92
* Payable for Capital Expenditure is inclusive of finance cost on account of winding up of long term liabilities
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will
affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Board of
directors is responsible for setting up of policies and procedures to manage market risks of the company.
Interest rate risk
The Company is exposed to interest rate risk arising from long term borrowing with floating interest rate. The Company is
exposed to interest rate risk because the cash flows associated with floating rate borrowing will fluctuate with changes in
interest rate.
Refer Note 10 for interest rate profile of the Company’s interest-bearing financial instrument at the reporting date.
Cash flow sensitivity analysis for variable-rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or
loss by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis is performed
on the same basis for the previous year.
Profit and Loss

31 March 2017 31 March 2016
Particulars 100 bp increase 100 bp decrease 100 bp increase 100 bp decrease
Rupee term loans (4,154.06) 4,154.06 (3,746.54) 3,746.54
Currency risk
The Company executes import agreements for the purpose of purchase of capital goods. Upto the date of commercial
operation, the company capitalise the exchange gain/loss on account of re-instatement/actual payment of the vendor
liabilities. Such capital cost is allowed by CERC as recovery from beneficiaries. If any exchange gain/loss arise after the date
of commercial operation the same will also be recovered from beneficiary as part of rate regulated asset. Hence there is
no risk in case of foreign exchange gain/loss on long term foreign currency monetary items. The exposure in case of foreign
exchange gain/loss on short term foreign currency monetary items is considered to be insignificant.
234
A Maharatna Company
The currency profile of financial liabilities as at March 31, 2017, March 31, 2016 and April 1, 2015 are as below:
31 March 2017
` Lakhs
Particulars USD EURO Total
31 March 2017
Payable for Capital Expenditure
In foreign currency 0.98 126.56 127.53
In INR 64.35 8,922.19 8,986.55
31 March 2016
In foreign currency 21.91 1,316.32 1,338.23
In INR 1,465.88 99,947.88 101,413.76
31 March 2015
In foreign currency 10.17 12,674.11 12,684.28
In INR 642.61 868,937.12 869,579.73
Sensitivity analysis
A strengthening of the Indian Rupee, as indicated below, against the USD and Euro at 31 March would have increased
(decreased) equity and profit before tax by the amounts shown below. This analysis is based on foreign currency exchange
rate variances that the company considered to be reasonably possible at the end of the reporting period. The analysis
assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis
for previous year, except that the reasonably possible foreign exchange rate variances were different, as indicated below.
Profit before Tax ` Lakhs
Strengthening Weakening Strengthening Weakening
USD 6.44 (6.44) 146.59 (146.59)
EURO 892.22 (892.22) 9,994.79 (9,994.79)
Total 898.66 (898.66) 10,141.38 (10,141.38)
30. Disclosure as per Indian Accounting Standard 114 on The Company is eligible to apply Indian Accounting
‘Regulatory Deferral Accounts’ Standard 114, Regulatory Deferral Accounts. The
(i) Nature of rate regulated activities standard permits an eligible entity to continue
previous GAAP (Guidance Note on accounting for
The Company is mainly engaged in generation and Rate Regulated Activities) accounting policy for its
sale of electricity. The price to be charged by the regulatory deferral account balances.
Company for electricity sold to its customers is
As per the CERC Tariff Regulations, any gain or loss
determined by the Central Electricity Regulatory
on account of exchange risk variation during the
Commission (CERC) which provides extensive
construction period shall form part of the capital
guidance on the principles and methodologies cost from declaration of Commercial Operation
for determination of the tariff for the purpose of Date (COD) to be considered for calculation
sale of electricity. The tariff is based on allowable of tariff. CERC during the past period in tariff
costs like interest, depreciation, operation & orders for various stations has allowed exchange
maintenance expenses, etc. with a stipulated differences incurred during the construction
return. This form of rate regulation is known as period in the capital cost. Accordingly, exchange
cost-of-service regulations which provide the difference arising during the construction period
Company to recover its costs of providing the is within the scope of Indian Accounting Standard
goods or services plus a fair return. 114.
235
A Maharatna Company
Exchange differences arising from settlement/ are concerned, the balance confirmation letters with
translation of monetary items denominated in the negative assertion as referred in the Standard on
foreign currency to the extent recoverable from Auditing (SA) 505 (Revised) ‘External Confirmations’,
the beneficiaries in subsequent periods as per were sent to the parties. Some of such balances are
CERC Tariff Regulations are recognized on an subject to confirmation/reconciliation. Adjustments,
undiscounted basis as ‘Regulatory deferral account if any will be accounted for on confirmation/
credit balance’ by credit/debit to ‘Movements reconciliation of the same, which in the opinion of
in Regulatory deferral account balances’ during the management will not have a material impact.
construction period and adjusted from the year In the opinion of the management, the value of assets,
in which the same becomes recoverable from or other than fixed assets, on realisation in the ordinary
payable to the beneficiaries. course of business, will not be less than the value at
(ii) Risks associated with future recovery of rate which these are stated in the Balance Sheet.
regulated assets: 33. Sensitivity of estimates on provisions
(i) demand risk (for example, changes in consumer The assumptions made for provisions relating to current
attitudes, the availability of alternative sources period are consistent with those in the earlier years. The
of supply or the level of competition) assumptions and estimates used for recognition of such
(ii) regulatory risk (for example, the submission provisions are qualitative in nature and their likelihood
or approval of a rate-setting application or could alter in next financial year. It is impracticable
the entity’s assessment of the expected future for the company to compute the possible effect of
regulatory actions) assumptions and estimates made in recognizing these
provisions.
(iii) other risks (for example, currency or other
market risks). 34. Disclosure as per Indian Accounting Standard - 12 on
‘Income taxes’
(iii) Reconciliation of the carrying amounts:
a) Income Tax Expense
Regulatory assets/(liability) recognized in the books
to be recovered from or payable to beneficiaries ` Lakhs
in future periods are as follow: Particulars For the year For the year
` Lakhs ended ended
31.03.2017 31.03.2016
Particulars 31.03.2017 31.03.2016
Current tax expense
Opening Balance 506.90 121.41
Current year 230.81 -
Addition during the year 152.16 385.49
Pertaining to (31.43) -
Recovery / payment during - -
regulatory deferral
the year
accounts
Closing Balance 659.06 506.90
199.38 -
*Above balances have not been discounted.
Deferred tax
The entity expects to reverse regulatory deferral account expense(MAT Credit
credit balance over the period of the project, i.e. 25 years. entitlement)
31. Amount in the financial statements are presented in ` Origination (199.38) -
Lakhs (upto two decimals) except for per share data of temporary
and as other-wise stated. differences
32. The Company has a system of obtaining periodic Add: Deferred 199.38 -
confirmation of balances from banks and other parties. liability for Rate
There are no unconfirmed balances in respect of Regulated Account
bank accounts and borrowings from banks & financial
institutions. In addition, reconciliation with beneficiaries - -
and other customers is generally done on quarterly basis. Total income tax expense 199.38 -
So far as trade/other payables and loans and advances
236
A Maharatna Company
b) Reconciliation of tax expense and the accounting to the Statement of Profit & Loss is ` 152.16 lakhs (31
profit multiplied by India’s domestic tax rate March 2016: ` 385.49 lakhs).
` Lakhs 37.
Disclosure as per Indian Accounting Standard 23
‘Borrowing Costs’
ended ended
Borrowing costs capitalised during the year is
31.03.2017 31.03.2016 ` 43,494.83 lakhs (31 March 2016: ` 40,604.39 lakhs).
Profit before tax 965.29 (2.55) 38. Disclosure as required by Schedule III of the Companies
Act, 2013: vide notification No GSR 308(E) Dated
Tax using the Company’s
30.03.2017 issued by Ministry of Corporate Affairs for
domestic tax rate of
Demonetization
33.063%
(31 March 2016 - 30.90%) 319.15 - The company does not maintain cash book since it
does not have any dealing in cash transactions.
Tax relating to origination 319.15 -
and reversal of Timing Therefore, the company neither held nor transacted
difference in Specified Bank Notes (SBN) during the period
Less : Deferred Tax on (319.15) - 08/11/2016 to 30/12/2016.
account of reversal of 39. Disclosure as per Indian Accounting Standard 33 on
depreciation during 80IA ‘Earnings per Share’
period Basic earnings per share
Tax under normal
` Lakhs
provision of tax
31 March 2017 31 March 2016
But company is liable to
pay tax under MAT From operations 0.00 (0.00)
MAT Liabiltiy (Deferred 199.38 - including regulatory
Tax) deferral account
balances (a)
Tax Liability 199.38 -
From regulatory (0.00) (0.00)
c) The company has not recognized Deferred Tax Liability deferral account
as the company is eligible for tax holiday u/s 80IA of balances (b)
Income Tax Act, 1961 and therefore depreciation From operations 0.00 0.00
difference reversing during the tax holiday period excluding regulatory
will be more than the net difference in WDV as on deferral account
31.03.2017. balances (a)-(b)
35. Disclosure as per Indian Accounting Standard 17 on Diluted earnings per share
‘Leases’
` Lakhs
Operating leases
31 March 2017 31 March 2016
a) The Company’s significant leasing arrangements
are in respect of operating leases of premises for From operations 0.00 (0.00)
residential use of employees, offices and guest including regulatory
houses/transit camps for a period of one to three deferral account
years. These leasing arrangements are usually balances (a)
renewable on mutually agreed terms but are not From regulatory (0.00) (0.00)
non-cancellable. deferral account
balances (b)
b) Expenses (net) on operating lease of the premises
for residential use of the employees amounting From operations 0.00 0.00
to `50.32 lakhs (Previous year `70.10 lakhs) are excluding regulatory
included in Note-22 Employee Benefits. deferral account
balances (a)-(b)
36. Disclosure as per Indian Accounting Standard 21 ‘The
Nominal value per 10 10
Effects of Changes in Foreign Exchange Rates’
share
The amount of exchange differences (net) credited
237
A Maharatna Company
(a) Profit attributable to equity shareholders b) BRBCL has filed Income Tax Return for the Assessment
Year 2014-15. The Assessing officer has disallowed
` Lakhs Income from other sources of ` 540.38 lakhs (nil as
31 March 2017 31 March 2016 on 31-Mar-2016 and nil as on 01-04-2015). Accordingly,
From operations 765.91 (2.55) department has imposed Tax Liability of ` 214.07
including regulatory lakhs (nil as on 31-Mar-2016 and nil as on 01-04-
deferral account 2015). In the assessment, income from other sources
balances (a) has been considered as revenue in nature instead of
capital in nature. BRBCL has filed an appeal against
From regulatory (152.16) (385.49) the assessment /fine/penalty to the commissioner of
deferral account Income Tax Appeal-V New Delhi for settlement of the
balances (b) issue. However, the outcome is awaited. The total
From operations 918.07 382.94 demand (net of Income Tax refund adjustment) amount
excluding regulatory is ` 186.24 lakhs including interest up to 31.03.2017.
deferral account c) BRBCL has filed Income Tax Return for the Assessment
balances (a)-(b) Year 2013-14. The Assessing officer has disallowed
(b) Weighted average number of equity shares Income from other sources of ` 844.44 lakhs (` 844.44
lakhs as on 31-Mar-2016 and nil as on 01-04-2015).
` Lakhs Accordingly, department has imposed Tax Liability of
31 March 2017 31 March 2016 ` 288.65 lakhs (` 288.65 lakhs as on 31-Mar-2016 and
nil as on 01-04-2015). Rectification order u/s-154 on
Opening balance of 1,584,613,900 1,584,613,900
09.05.2016 has been passed which resulted in reduction
issued equity shares
of demand to ` 261.26 lakhs. In the assessment, income
Effect of shares issued - - from other sources has been considered as revenue
during the year, if any in nature instead of capital in nature. BRBCL has filed
Weighted average 1,584,613,900 1,584,613,900 an appeal against the assessment /fine/penalty to
number of equity the commissioner of Income Tax Appeal-V New Delhi
shares for Basic EPS for settlement of the issue. However, the outcome is
awaited. The total demand (net of Income Tax refund
31 March 2017 31 March 2016 adjustment) amount is ` 179.72 lakhs including interest
up to 31.03.2017 (` 288.65 lakhs as on 31-Mar-2016 and
Opening balance of 1,584,613,900 1,584,613,900
nil as on 01-04-2015).
issued equity shares
d) The Assessing officer of income tax had made an
Effect of shares 99,658,438 2,528,110 addition of ` 1,008.75 lakhs as Income from other
allotment money sources for the assessment year 2012-13 (` 1,008.75
Weighted average 1,684,272,338 1,587,142,010 lakhs as on 31-Mar-2016 and ` 1,008.75 lakhs as on
number of equity 01-04-2015). In the appeal filed by the company, the
shares for Basic EPS Commissioner of Income Tax (Appeal)-V had, in the
40. Disclosure as per Indian Accounting Standard 37 on order, deleted the addition made by assessing officer.
‘Provisions, Contingent Liabilities and Contingent The assessing officer has, however, filed appeal with
Assets’ the Appellate Tribunal against the deletion by the CIT
Appeal. The total demand on account of deletion (net
Contingent Liability of Income Tax refund adjustment) amount to ` 526.36
a) Demand notice received from the Commercial Tax lakhs including interest up to 31.03.2017 (` 509.10
Office, Aurangabad, Bihar for ` 590.30 lakhs (nil as on lakhs as on 31-Mar-2016 and ` 443.13 lakhs as on 01-
31-Mar-2016 and nil as on 01-04-2015) on account of 04-2015).
tax, penalty and interest under the Bihar VAT Act, 2005 e) The Assessing officer of income tax had made an addition
for the FY 2013-14 & 2014-15. In the appeal filed by of ` 225.88 lakhs (` 225.88 lakhs as on 31-Mar-2016 and
the company, the Commissioner of Commercial Taxes, ` 225.88 lakhs as on 01-04-2015) as income from other
Patna , in the order dated 17.03.2017, stay was given sources for the assessment year 2011-12. In the appeal
with order to deposit the amount of ` 300.00 lakhs on filed by the company, the Commissioner of Income Tax
or before 25.03.2017. The same was deposited on time (Appeal)-V had, in the order, deleted the addition made
by the company. The case admitted in the hearing on by assessing officer. The assessing officer has, however,
05-05-2017 and called for lower court record.
238
A Maharatna Company
filed appeal with the Appellate Tribunal against the h) The work ‘Contract for Electrical equipments supply &
deletion by the CIT Appeal.The total demand on erection package’ was awarded to a contractor. The
account of deletion amount to ` 94.03 lakhs including Contractor demanded compensation of ` 329.58
interest up to 31.03.2017 (` 86.03 lakhs as on 31-Mar- lakhs (nil as on 31-Mar-2016 and nil as on 01-04-2015)
2016 and ` 77.11 lakhs as on 01-04-2015). on account of extended stay, overhead expenses and
f) The work ‘Contract for residential quarter etc was reimbursement of expenses incurred for establishing
awarded to a contractor. The contract was terminated Temporary structure for beyond the original contract
due to poor progress in job. The Contractor has gone period.
in arbitration with a claim of ` 184.42 lakhs (` 184.42 i) Demand notice has been served by Asst.Commissioner
lakhs as on 31-Mar-2016 and ` 184.42 lakhs as on 01- of comercial taxes vide letter No 1663 dated 27th March
04-2015) invoking arbitration under general condition 2015 for `558.74 lakhs (` 558.74 lakhs as on 31-Mar-
contract for losses incurred by them during strike 2016 and ` 558.74 lakhs as on 01-04-2015) against Entry
period. A claim has been sumbitted by the contractor tax on materials procured from the agencies within the
amounting ` 5,442.01 lakhs before Learned sole state but outside the Municipal limit of Nabinagar TPP.
Arbitrator on 30.11.2016. BRBCL also sumbitted counter BRBCL did not accept the claim and Commercial tax
claim amounting ` 8,447.79 lakhs on 28.02.2017. authority had been informed that BRBCL had already
g) The work ‘Contract for civil work and ash dyke’ was deposited Works Contract Tax on a portion of the
awarded to a contractor. The contract was terminated taxable amount and VAT on the other portion. The
due to poor progress in job. The Contractor has demand has not yet been withdrawn.
gone in arbitration with a claim of ` 15,043.89 lakhs 41. Disclosure in respect of amount due to micro and small
(` 15,043.89 lakhs as on 31-Mar-2016 and ` 15,043.89 enterprises
lakhs as on 01-04-2015) invoking arbitration under Information in respect of micro and small enterprises
general condition contract for losses incurred by them as at 31st March 2017 as required by Micro, Small and
during strike period. As per the company’s contention, Medium Enterprises Development Act, 2006
no claim is payable.
` Lakhs
31.03. 2017# 31.03. 2016# 01.04.2015

Principal amount 507.04 371.75 -
b) Amount of interest paid in terms of Section 16 of the MSMED
Act along-with the amount paid to the suppliers beyond the
appointed day. - - -
c) Amount of interest due and payable for the period of delay
in making payment (which have been paid but beyond the
appointed day during the year) but without adding the interest
specified under the MSMED Act. - - -
e) Amount of further interest remaining due and payable even in
the succeeding years, until such date when the interest dues as
above are actually paid to the small enterprises, for the purpose
of disallowances as a deductible expenditure under Section 23
of MSMED Act - - -
239
A Maharatna Company
42. Capital Management

The Company’s objectives when managing capital are to:
- safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and
benefits for other stakeholders and
- maintain an appropriate capital structure of debt and equity.
The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital
through prudent management of deployed funds and leveraging opportunities in domestic and international financial
markets so as to maintain investor, creditor and market confidence and to sustain future development of the business.
The Company monitors capital, using a medium term view of three to five years, on the basis of a number of financial
ratios generally used by industry and by the rating agencies. The Company is not subject to externally imposed capital
requirements.
The Company monitors capital using gearing ratio which is net debt divided by total equity. Net debt comprises of long
term and short term borrowings less cash and cash equivalent. Equity includes equity share capital and reserves that
are managed as capital. The gearing ratio at the end of the reporting periods was as follows:
` Lakhs
Particulars 31.03.2017 31.03.2016
Total liabilities 453,947.70 394,149.73
Less : Cash and cash equivalent 541.49 12,208.46
Net debt 453,406.21 381,941.27
Total equity 158,461.39 158,461.39
Net debt to equity ratio 2.86 2.41
43. In order to conform current year’s classification the following comparative amounts have re-classified:
a) Change is on account of capital expenditure on assets not owned by the company to be capitalised once the
project concerned asset became avaliable for intended use. Since the plant was not in operation as at April 01,
2015 hence been classified as CWIP.The same was already corrected in FY 2015-16.
` Lakhs
Particulars Ind AS I GAAP Difference
Re-grouped Reported
Tangible Fixed Assets 37,862.22 40,037.38 (2,175.16)

Capital Work in Progress 450,263.52 448,088.36 2,175.16
488,125.74 488,125.74 -
b) During transition to Indian Accounting Standards, it was observed that certain liabilities of contractors’ /other
vendors were classified as non-current instead of current in the financial statements.The same has now been
correctly reclassified as short term. This has resulted in reclassification of following heads:
As At 31st March 2016
` Lakhs
Particulars Ind AS I GAAP
Re-grouped Reported
Payable for Capital Expenditure (Non-Current) 8,546.00 38,161.79

Trade Payable 6,099.17 239.09
Payable for Capital Expenditure (Current) 42,881.17 21,051.40
Deposits from Contractors 39.68 -
57,566.02 59,452.28
240
A Maharatna Company
As At 1 April 2015
st
` Lakhs
Particulars Ind AS I GAAP
Re-grouped Reported
Payable for Capital Expenditure (Non-Current) 17,174.34 32,680.84

Trade Payable 6,336.59 23.15
Payable for Capital Expenditure (Current) 25,640.07 16,439.30
Deposits from Contractors 57.60 -
Other payable 51.90 117.20
49,260.50 49,260.49
44. Standards issued but not yet effective
In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments)
Rules, 2017, notifying amendments to Ind AS 7, ‘Statement of cash flows’. These amendments are in accordance with
the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ‘Statement of cash flows’.
The amendments are applicable to the company from April 1, 2017. The amendment to Indian Accounting Standard
7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities
arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting
inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from
financing activities, to meet the disclosure requirement. The company is evaluating the requirements of the amendment
and the effect on the financial statements is being evaluated.
45. Certain contracts of the company for construction of power plants with vendors awarded through ICB (International
competitive bidding) which are denominated in third currency (i.e. a currency which is not the functional currency
of any of the parties to the contract) are falling under the purview of guidance provided as per Indian Accounting
Standard 109, ‘Financial instruments’ on derivatives and embedded derivatives. NTPC Limited (Promoter Company) has
sought opinion from the Expert Advisory Committee (EAC) constituted by Institute of Chartered Accountants of India
on the above matter. On receipt of opinion / clarification from EAC, company will account for such contracts.


G. K. Aggarwal
Partner
Place: New Delhi
Date: 16th May 2017
241
A Maharatna Company
INDEPENDENT AUDITORS’ REPORT

To on Auditing specified under Section 143(10) of the Act.
The Members of BHARTIYA RAIL BIJLEE COMPANY LIMITED Those Standards require that we comply with ethical
This Audit Report supersedes our earlier report dated requirements and plan and perform the audit to obtain
16.05.2017 and is being revised as per the observation of reasonable assurance about whether the financial
the Comptroller and Auditor General of India (Refer (II) of statements are free from material misstatement.
‘Emphasis of matter’). An audit involves performing procedures to obtain audit
Report on the Financial Statements evidence about the amounts and the disclosures in the
We have audited the accompanying Standalone Ind AS Standalone Ind AS financial statements. The procedures
financial statements of BHARTIYA RAIL BIJLEE COMPANY selected depend on the auditor’s judgment, including
LIMITED (“the Company”), which comprise the Balance the assessment of the risks of material misstatement of
Sheet as at 31st March, 2017, the Statement of Profit and the Standalone Ind AS financial statements, whether due
Loss (including other comprehensive income), the Cash Flow to fraud or error. In making those risk assessments; the
Statement and the Statement of Changes in Equity for the auditor considers internal financial control relevant to the
year then ended and a summary of significant accounting Company’s preparation of the Standalone Ind AS financial
policies and other explanatory information (hereinafter statements that give a true and fair view in order to design
referred to as “Standalone Ind AS financial statements”). audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of
Management’s Responsibility for the Financial Statements
the accounting policies used and the reasonableness of the
The Company’s company’s Board of Directors is responsible accounting estimates made by company’s the Company’s
for the matters stated in Section 134(5) of the Companies Directors, as well as evaluating the overall presentation of
Act, 2013 (“the Act”) with respect to the preparation of the Standalone Ind AS financial statements.
these Standalone Ind AS financial statements that give a true
and fair view of the financial position, financial performance We believe that the audit evidence we have obtained is
including other comprehensive income and cash flows and sufficient and appropriate to provide a basis for our audit
changes in equity of the Company in accordance with the opinion on the Standalone Ind AS financial statements.
accounting principles generally accepted in India, including Opinion
the Indian Accounting Standards (IND AS) specified under In our opinion and to the best of our information and
Section 133 of the Act, read with Rule 7 of the Companies according to the explanations given to us, the aforesaid
(Accounts) Rules, 2015 (As amended). Standalone Ind AS financial statements give the information
This responsibility also includes maintenance of adequate required by the Act in the manner so required and give
accounting records in accordance with the provisions of a true and fair view in conformity with the accounting
the Act for safeguarding of the assets of the Company and principles generally accepted in India of the state of affairs
for preventing and detecting frauds and other irregularities; of the Company as at 31st March, 2017 and its losses, cash
selection and application of appropriate accounting flows and the changes in equity for the year ended on that
policies; making judgments and estimates that are reasonable date.
and prudent; and design, implementation and maintenance Emphasis of Matters
of adequate internal financial controls, that were operating
We draw attention to the following matters in the Notes to
effectively for ensuring the accuracy and completeness of
the financial statements:
the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and (i) On transition to Ind As, it was observed that certain
fair view and are free from material misstatement, whether liabilities of contractors’ /other vendors were classified
due to fraud or error. as non-current instead of current in the financial
Auditors’ Responsibility statements.The same has now been reclassified as
short term, refer note 43(b)to the financial statement.
Our responsibility is to express an opinion on these
Standalone Ind AS financial statements based on our audit. (ii) The Company has not yet appointed whole time
Company Secretary, as required under section 2013(1)
We have taken into account the provisions of the Act,
of the Companies Act, 2013.
the accounting and auditing standards and matters which
are required to be included in the audit report under the However, the management has assured to have full time
provisions of the Act and the Rules made thereunder. Company Secretary in the current financial year.
We conducted our audit in accordance with the Standards Our report is not modified in respect of above matters.
242
A Maharatna Company
Report on Other Legal and Regulatory Requirements Company and the operating effectiveness of such
1. As required by the Companies (Auditor’s Report) Order, controls, refer to Annexure-3.
2016 (“the Order”) issued by the Central Government (g) With respect to the other matters to be included in
of India in terms of sub-section (11) of section 143 the Auditor’s Report in accordance with Rule 11 of
of the Act, we give in the Annexure-1 a statement on the Companies (Audit and Auditors) Rules, 2014, in
the matters specified in the paragraph 3 and 4 of the our opinion and to the best of our information and
Order, to the extent applicable. according to the explanations given to us:
2. We are enclosing our report in terms of Section 143 (5) i. The Company has disclosed the impact of
of the Act, on the basis of such checks of the books and pending litigations on its financial position in
records of the Company as we considered appropriate its financial statements – Refer Note-40 to the
and according to the information and explanations financial statements;
given to us, in the Annexure-2 on the directions and ii. The Company has made provision, as required
sub-directions issued by Comptroller and Auditor under the applicable law or accounting
General of India. standards, for material foreseeable losses,
3. As required by Section 143 (3) of the Act, we report if any, on long-term contracts including
that: derivative contracts.
(a) We have sought and obtained all the information iii. There is no amount payable towards investor
and explanations which to the best of our education and protection fund in accordance
knowledge and belief were necessary for the with the relevant provisions of the Companies
purposes of our audit. Act, 1956 (1 of 1956) and rules made
(b) In our opinion, proper books of account as thereunder.
required by law have been kept by the Company iv. The Company has provided requisite
so far as it appears from our examination of those disclosures in its financial statements as to
books; holdings as well as dealings in Specified Bank
(c) The Balance Sheet, the Statement of Profit and Notes during the period from 8 November,
Loss, and the Cash Flow Statement dealt with by 2016 to 30 December, 2016 and these are
this Report are in agreement with the books of in accordance with the books of accounts
account; maintained by the Company. Refer Note 38 to
the financial statements.
(d) In our opinion, the aforesaid financial statements
comply with the Indian Accounting Standards (IND
AS) specified under Section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules,
2015 (As amended); For N.C. Aggarwal & Co.
(e) Being a Government Company, pursuant to
the Notification No. GSR 463(E) dated 5th June
2015 issued by Ministry of Corporate Affairs,
Government of India, provisions of sub-section (2)
of Section 164 of the Companies Act, 2013, are not G. K. Aggarwal
applicable to the Company. Partner
(f) With respect to the adequacy of the internal Membership No. : 086622
financial controls over financial reporting of the Place: New Delhi
Date: 21st July, 2017
243
A Maharatna Company
Annexure-I
ANNEXURE - 1 TO INDEPENDENT AUDITORS’ REPORT
(Annexure referred to in our report of even date to the and 186 of the Companies Act, 2013. Accordingly,
members of BHARTIYA RAIL BIJLEE COMPANY LIMITED on the provisions of clause 3(iv) of the order are not
the accounts for the year ended 31st March, 2017) applicable to the company and hence not commented
1. (a) The Company has maintained proper records upon.
showing full particulars including quantitative 5. According to the information given to us, the Company
details and situation of fixed assets. has not accepted any deposits under the provisions of
(b) A major portion of the fixed assets has been section 73 to 76 of the Companies Act, 2013 or any
physically verified by the Management in other relevant provisions of the companies Act and the
accordance with a phased programmed of Companies (Acceptance of Deposits) Rules, 2014 as
verification once in two years adopted by the amended from time to time. No order has been passed
company. In our opinion, the frequency of the with respect to Section 73 to 76, by the Company Law
verification is reasonable having regard to the size Board or National Company Law Tribunal or Reserve
of the company and the nature of its assets. To the Bank of India or any Court or any other tribunal.
best of our knowledge, no material discrepancies 6. We have broadly reviewed the books of accounts
have been noticed on such verification. and records maintained by the company pursuant
(c) As informed, the title deeds of all the immovable to the rules made by the central government for the
properties are held in the name of the Company. maintenance of cost records under section 148 (1) of
2. As explained to us, the management during the year the Companies Act, 2013 in respect of the company’s
has physically verified inventories at reasonable interval products and are of the opinion that, prima facie, the
and in respect of stores and spares, there is a perpetual prescribed records have been made and maintained.
inventory system and a substantial part of such stock We have, however, not made a detailed examination
has been verified during the year. However, stocks in of records with a view to determine whether they are
the possession and custody of third parties and stock accurate or complete.
in transit as at 31st March 2017 have been verified 7. (a) Undisputed statutory dues including provident
by the management with reference to confirmation fund, employee’ state insurance, income tax, sales
or statement of account or correspondence of tax, service tax, duty of customs, duty of excise,
third parties or subsequent receipt of goods. In our value added tax, cess and other statutory dues
opinion, the frequency of verification is reasonable. have generally been regularly deposited with
The discrepancies noticed during physical verification the appropriate authorities and there are no
of inventories as compared to book records were not undisputed dues outstanding as at 31st March,
material and the same have been properly dealt within 2017 for a period of more than six months from
the books of accounts. the date they became payable.
3. According to the information and the explanations (b) According to the information and explanations
given to us, the company has not granted any loans, given to us, there are no material dues of sales
secured or unsecured to companies, firms, limited tax, service tax, duty of customs, duty of excise,
liability partnership or other parties covered in the value added tax and cess which have not been
register maintained under section 189 of the Companies deposited with the appropriate authorities on
Act 2013. Accordingly, the provisions of clause 3(iii)(a), account of any dispute. However, according to
3(iii)(b) and 3(iii)(c) of the order are not applicable to information and explanations given to us, the
the company and hence not commented upon. following dues of income tax and entry tax have
not been deposited by the Company on account
4. The Company has not granted any loans or given any
of disputes:
guarantee and security covered under Section 185
244
A Maharatna Company
Name of the statute Nature of dues Amount (in `) Period to which the Forum where
amount relates dispute is pending
Bihar Entry Tax Act Entry Tax 5,90,29,995 FY 2013-14 to Assistant
FY 2014-15 Commissioner of
Commercial Tax,
Aurangabad
Income Tax Act, Income Tax 94,03,109 AY 2011-12 Income Tax
1961 Appellate Tribunal,
New Delhi
Income Tax Act, Income Tax 5,26,35,577 AY 2012-13 Income Tax
1961 Appellate Tribunal,
New Delhi
Income Tax Act, Income Tax 1,79,72,204 AY 2013-14 Commissioner of
1961 Income Tax (Appeal)
New Delhi
Income Tax Act, Income Tax 1,86,24,233 AY 2014-15 Commissioner of
1961 Income Tax (Appeal)
New Delhi
8. Based on our audit procedures and as per the transactions with the related parties, where applicable.
information and explanations given by the management, Details of the transactions with the related parties have
we are of the opinion that the company has not been disclosed in the financial statements under Note
defaulted in repayment of dues to financial institutions. No. 27 as required by the applicable Indian accounting
There is no amount of dues to banks. standards (IND AS).
9. The Company has not raised any money by way of initial 14. The Company has not made any preferential allotment or
public offer or further public offer or debt instruments. private allotment of shares or fully or partly convertible
According to the information and explanations given to debentures during the year. Accordingly, provisions of
us, the money raised by the Company by way of term clause 3 (xiv) of the Order are not applicable to the
loans have been applied for the purpose for which Company.
they were obtained.
15. The Company has not entered into any non-cash
10. According to the information and explanations given to transactions with the directors or persons connected
us and as represented by the Management and based with him as covered under Section 192 of the
on our examination of the books and records of the Companies Act, 2013.
Company and in accordance with generally accepted
16. The Company is not required to be registered under
auditing practices in India, we have been informed that
section 45-IA of the Reserve Bank of India, 1934.
no case of frauds has been committed on or by the
Accordingly, provisions of clause 3 (xiv) of the Order
Company or by its officers or employees during the
are not applicable to the Company.
year.
11. As per notification no. GSR 463(E) dated 5th June
2015 issued by the Ministry of Corporate Affairs, For N.C. Aggarwal & Co.
Government of India, Section 197 is not applicable to Chartered Accountants
the Government Companies. Accordingly, provisions Firm Reg. No.: 003273N
of clause 3 (xi) of the Order are not applicable to the
Company.
12. The company is not a Nidhi Company. Accordingly, G. K. Aggarwal
the provisions of clause 3 (xii) of the Order are not Partner
applicable to the Company. Membership No. : 086622
13. The Company has complied with the provisions of Place: New Delhi
Section 177 and 188 of the Companies Act, 2013 w.r.t. Date: 21st July, 2017
245
A Maharatna Company
Annexure-II
ANNEXURE - 2 TO INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph (2) under the heading of ‘Report on other Legal and Regulatory Requirements’ of our report of
even date for the year ended 31st March, 2017)
(1) Whether the Company has clear title/lease deeds for freehold and leasehold land respectively? If not, please state the
area of the freehold and leasehold land for which title/lease deeds are not available.
Reply: As per the information and records, the Company is having clear title in respect of freehold land in possession
of the Company. However, land of 117.74 acres is pending for mutation.
(2) Whether there are any cases of waiver/write off of debts/loans/ interest etc., if yes, the reasons thereof and the
amount involved.
Reply: According to information and explanations given to us, there are no cases of waiver/write off of debts/loans/
interest etc.
(3) Whether proper records are maintained for inventories lying with third parties & assets received as gift/grants from
Govt. or other authorities?
As per the information and records, proper records are maintained by the Company for inventories lying with third
parties. As informed to us the Company not received any assets/grants from as gift/grants from Govt. or other
authorities.
For N.C. Aggarwal & Co.

G. K. Aggarwal
Partner
Place: New Delhi
Annexure - III
ANNEXURE-3 TO INDEPENDENT AUDITORS’ REPORT

Annexure referred to in our report of even date to the Controls over Financial Reporting issued by the Institute of
members of BHARTIYA RAIL BIJLEE COMPANY LIMITED on Chartered Accountants of India (ICAI). These responsibilities
the accounts for the year ended 31st March, 2017 include the design, implementation and maintenance of
Report on the Internal Financial Controls under Clause (i) of adequate internal financial controls that were operating
Sub-section 3 of Section 143 of the Companies Act, 2013 effectively for ensuring the orderly and efficient conduct
(“the Act”) of its business, including adherence to Company’s policies,
the safeguarding of its assets, the prevention and detection
We have audited the internal financial controls over of frauds and errors, the accuracy and completeness of the
financial reporting of Bhartiya Rail Bijlee Company Limited accounting records, and the timely preparation of reliable
(“the Company”) as of 31st March, 2017 in conjunction with financial information, as required under the Companies Act,
our audit of the financial statements of the Company for the 2013.
year ended on that date.
Auditors’ Responsibility
Management’s Responsibility for Internal Financial Controls
Our responsibility is to express an opinion on the Company’s
The Company’s management is responsible for establishing internal financial controls over financial reporting based
and maintaining internal financial controls based on the on our audit. We conducted our audit in accordance with
internal control over financial reporting criteria established the Guidance Note on Audit of Internal Financial Controls
by the Company and the components of internal control Over Financial Reporting (the “Guidance Note”) and the
stated in the Guidance Note on Audit of Internal Financial Standards on Auditing, issued by ICAI and deemed to
246
A Maharatna Company
be prescribed under section 143(10) of the Companies and expenditures of the Company are being made only
Act, 2013, to the extent applicable to an audit of internal in accordance with authorizations of management and
financial controls, both applicable to an audit of Internal directors of the Company; and (3) provide reasonable
Financial Controls and both issued by the ICAI. Those assurance regarding prevention or timely detection
Standards and the Guidance Note require that we comply of unauthorized acquisition, use, or disposition of the
with ethical requirements and plan and perform the audit Company’s assets that could have a material effect on the
to obtain reasonable assurance about whether adequate financial statements.
internal financial controls over financial reporting was Inherent Limitations of Internal Financial Controls over
established and maintained and if such controls operated Financial Reporting
effectively in all material respects.
Because of the inherent limitations of internal financial
Our audit involves performing procedures to obtain audit controls over financial reporting, including the possibility
evidence about the adequacy of the internal financial of collusion or improper management override of controls,
controls system over financial reporting and their operating material misstatements due to error or fraud may occur
effectiveness. Our audit of internal financial controls over and not be detected. Also, projections of any evaluation
financial reporting included obtaining an understanding of of the internal financial controls over financial reporting
internal financial controls over financial reporting, assessing to future periods are subject to the risk that the internal
the risk that a material weakness exists, and testing and financial control over financial reporting may become
evaluating the design and operating effectiveness of inadequate because of changes in conditions, or that the
internal control based on the assessed risk. The procedures degree of compliance with the policies or procedures may
selected depend on the auditor’s judgment, including the deteriorate.
assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. Opinion
We believe that the audit evidence we have obtained is In our opinion, the Company has, in all material respects,
sufficient and appropriate to provide a basis for our audit an adequate internal financial controls system over financial
opinion on the Company’s internal financial controls system reporting and such internal financial controls over financial
over financial reporting. reporting were operating effectively as at 31st March, 2017,
based on the internal control over financial reporting
Meaning of Internal Financial Controls over Financial criteria established by the Company and the components
Reporting of internal control stated in the Guidance Note on Audit of
A Company’s internal financial control over financial Internal Financial Controls over Financial Reporting issued
reporting is a process designed to provide reasonable by the ICAI.
assurance regarding the reliability of financial reporting
and the preparation of financial statements for external
purposes in accordance with generally accepted For N.C. Aggarwal & Co.
accounting principles. A Company’s internal financial Chartered Accountants
control over financial reporting includes those policies Firm Reg. No.: 003273N
and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and
G. K. Aggarwal
fairly reflect the transactions and dispositions of the
Partner
assets of the Company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit
Place: New Delhi
preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts
247
A Maharatna Company

143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF BHARTIYA RAIL
BIJLEE COMPANY LIMITED FOR THE YEAR ENDED 31 MARCH 2017
The preparation of financial statements of Bhartiya Rail Bijlee Company Limited for the year ended 31 March 2017 in
accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of
the management of the company. The Statutory Auditors appointed by the Comptroller and Auditor General of India under
Section 139(5) of the Act are responsible for expressing opinion on the financial statements under Section 143 of the Act
based on independent audit in accordance with the standards on auditing prescribed under Section 143(10) of the Act.
This is stated to have been done by them vide their revised Audit Report dated 21 July 2017 which supersedes their earlier
Audit Report dated 16 May 2017.
(a) of the Act of the financial statements of Bhartiya Rail Bijlee Company Limited for the year ended 31 March 2017. This
of the accounting records. On the basis of my audit nothing significant has come to my knowledge which would give rise
to any comment upon or supplement to Statutory Auditors’ Report.

(Indu Agrawal)
Ex-officio Member, Audit Board, Ranchi
Place: Ranchi
248

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A Maharatna Company

• NTPC Electric Supply Company Limited........................................................... 02

• NTPC Vidyut Vyapar Nigam Limited.................................................................. 39

• Kanti Bijlee Utpadan Nigam Limited................................................................. 91

• Bhartiya Rail Bijlee Company Limited............................................................. 173

• Patratu Vidyut Utpadan Nigam Limited............................................................. 249

NTPC ELECTRIC SUPPLY COMPANY LIMITED

Subsidiary Company - NTPC Electric Supply Company Limited

Subsidiary Company - NTPC Electric Supply Company Limited

Subsidiary Company - NTPC Electric Supply Company Limited

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS Companies for financial turnaround by restructuring

Subsidiary Company - NTPC Electric Supply Company Limited

Subsidiary Company - NTPC Electric Supply Company Limited

2016-17 2015-16 As on 31st March 2017, there were no employees posted on

Subsidiary Company - NTPC Electric Supply Company Limited

“Annexure II” 2. The Composition of the CSR Committee.

(1) (2) (3) (4) (5) (6) (7) (8)

For and on behalf of the Board of Directors

Subsidiary Company - NTPC Electric Supply Company Limited

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES –

Subsidiary Company - NTPC Electric Supply Company Limited

Subsidiary Company - NTPC Electric Supply Company Limited

(ii) Shareholding of Promoters

(iii) Change in Promoters’ Shareholding (please specify, if there is no change)

Sl Shareholding at the beginning Cumulative shareholding during

Subsidiary Company - NTPC Electric Supply Company Limited

(v) Shareholding of Directors and Key Managerial Personnel:

Subsidiary Company - NTPC Electric Supply Company Limited

Secured Loans Unsecured Deposits Total

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

Sl. Particulars of Remuneration Name of MD/WTD /Manager Total

Subsidiary Company - NTPC Electric Supply Company Limited

B. Remuneration to other directors:

Sl. Particulars of Remuneration Name of Directors Total

Sl. Particulars of Remuneration Key Managerial Personnel

Subsidiary Company - NTPC Electric Supply Company Limited

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

For and on behalf of the Board of Directors

Subsidiary Company - NTPC Electric Supply Company Limited

NTPC ELECTRIC SUPPLY COMPANY LIMITED

TOTAL ASSETS 7,775.38 7,769.32 64,471.88

EQUITY AND LIABILITIES

TOTAL EQUITY AND LIABILITIES 7,775.38 7,769.32 64,471.88

This is the Balance Sheet referred to in our report of even date.

(Rahul Kathuria) (Animesh Jain) (Kulamani Biswal) (Gurdeep Singh)

Subsidiary Company - NTPC Electric Supply Company Limited

NTPC ELECTRIC SUPPLY COMPANY LIMITED

Profit /(Loss)before tax (16.18) 136.11

Total comprehensive income for the year (18.12) 112.83

For and on behalf of the Board of Directors

(Rahul Kathuria) (Animesh Jain) (Kulamani Biswal) (Gurdeep Singh)

Subsidiary Company - NTPC Electric Supply Company Limited

NTPC ELECTRIC SUPPLY COMPANY LIMITED

B. CASH FLOW FROM INVESTING ACTIVITIES

C. CASH FLOW FROM FINANCING ACTIVITIES

Cash and cash equivalents 11.23 17.35

For and on behalf of the Board of Directors

(Rahul Kathuria) (Animesh Jain) (Kulamani Biswal) (Gurdeep Singh)

Subsidiary Company - NTPC Electric Supply Company Limited

Partner Chief Executive Office Director Chairman