thdc india limited - World Bank Documents

THDC INDIA LIMITED(A Joint venture of Govt. of India & Govt. of U.P.)

Corporate Office, Pragati Puram, Bye-Pass Road, Rishikesh-249 201 (Uttaranchal),Phones: 0135 -2433424, Fax: 0135 -2436593

qqfq5: g 14 ftfff4i 13.12.2016To,

Madam Supriti Dua,Financial Management Specialiest,The World Bank.70, Lodhi Estate,New Delhi - 110 003

Subject: Project Audit Report and Balance Sheet of Vishnugad Pipal Koti Project(VPHEP)for the Year 2015-16- IBRD Loan no. 80780-IN

Respected Madam,

In line with IBRD Loan Agreement requirement of Project Audit of VPHEP Project for the

Year 2015-16 has been completed by Project Auditor M/s P.D. Agrawal & Co, Haridwar.

Following signed documents are enclosed in original-

1. Audit Report2. PFS-I3. PFS -II along with Schedule4. Balance sheet along with notes of Accounts and Accounting Policies.5. IUFR for the period ending 31.03.2016

Thanking You,Your f ithfully,

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P. D. Agrawal & Co.Chartered Accountants

15/11- A, Kailash Kuti AppartmentCivil Lines, Kanpur 208 001

Phone: 0512-2304104Telefax: 0512 - 2304109

E-mail: [email protected]

AUDIT REPORT

To,THDC India LimitedCorporate Office,Ganga Bhawan, Bye Pass RoadRishikesh-249201.

Introduction

We have audited the accompanying financial statements including the BalanceSheet, Profit & loss Account and the notes to the financial statements, of the VishnugadPipalKoti Hydro Electric Project (VPHEP) of THDC India Limited, financed under WorldBank Loan No.80780-IN as on 31st day of March, 2016. Our responsibility is to express anunqualified opinion on these financial statements based on our audit.

Scope

We conducted our audit in accordance with Auditing and Assurance Standards issued

by the Institute of Chartered Accountants of India and World Bank guidelines. Those

Standards and World Bank guidelines require that we plan and perform audit to obtainreasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessingthe accounting principles used and significant estimates made by management, as wellas evaluating the overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the Sources andApplication of Funds of VPHEP Project for year ended 31st March 2016 in accordancewith Accounting Standards issued by the Institute of Chartered Accountants of India.

Continued -

In addition,

(a) the funds provided under the World Bank Loan no -80780-IN have been utilizedfor the purposes for which they were provided;

(b) the IUFRs submitted could be fairly relied upon to support the applications forwithdrawals in accordance with the requirements specified in the CreditAgreement;

(c) the Financial Statements of the Designated Accounts give a true and fair view offinancial position of the project Loan no- 80780-IN as on the 31st day of March2016 then ended in accordance with Auditing and Assurance Standards issued bythe Institute of Chartered Accountants of India and World Bank guidelines and;

(d) expenditures which are eligible for financing under the Loan/ Credit Agreementunder World Bank Loan No.80780-IN are in order.

For P.D. AGRAWAL & CO.Chartered AccountantsFRN 001049C of ICAI

Date: 13/12/2016Place: Rishikesh (Prakhar Gupta), CA

PartnerMembership No.:-421711

ANNEXURE "A" TO THE AUDIT REPORT DATED 13th December 2016,

FOR VISHNUGAD PIPALKOTI HYDRO ELECTRIC PROJECT ( VPHEP) OF

THDC INDIA LTD. (LOAN NO. IBRD - 80780-IN)

1. The figures mentioned in Column no. 3 of Annexed statement PFS -I & PFS -II arecumulative totals till 3 1st March, 2016.

2. We have examined the documents & books of accounts of Vishnugad PipalkotiHydro Electric Project (VPHEP) consisting of Journal, Ledger & all vouchersconnected with the World Bank Loan.

3. The procurement processes are observed to be in line with the applicable provisionsof World Bank guidelines for procurement.

4. No deficiencies have been observed in so far as the system of Internal Controls areprevalent at the unit.

5. The Financial Covenants on the Financing Agreement seem to have been properlycomplied with, and no significant matters have been noticed which might have animpact on the implementation of the project.

6. Physical verification of Fixed Assets at the Vishnugad Pipalkoti Hydro ElectricProject (VPHEP) site was conducted by M/s Gianender & Associates, CharteredAccountants, an outsourced firm and we have relied upon their report dated25.03.2016


Date :13/12/2016Place: Rishikesh

(Prakhar Gupta), CAPartnerMembership No.:-421711

PFS-1THDC INDIA LIMITED- VISHNUGAD PIPALKOTI HYDROELECTRIC PROJECT(VPHEP)IBRD Loan no. 80780-IN

STATEMENT OF SOURCES & APPLICATION OF FUNDSREPORT FOR THE YEAR ENDED 31.03.2016

Amount In (T)Current Year ended Previous Year Project to date as at

Particulars 31st March 2016 ended 31st March 31st March 20162015

Opening Balance:Opening Balance in IBRD designated Account at Corporate office 24,050,753.00Opening Balance in IBRD Special Account at Project 8,123,214.00Opening Balance in Project Bank Account - Counterpart 5,283,120.77 16,218,379.29

Total Opening Balance 37,457,087.77 16,218,379.29Receipts: _________________

IBRD - Advances 1,618,000,000.00 580,000,000.00 2,198,000,000.00IBRD - Direct Payments/ Special Commitments 841,075,759.00IBRD - Reimbursements works 35,115,321.00 35,115,321.00IBRD - Reimbursements -consultancy 17,797,706.00 25,435,482.00 43,233,188.00Upfront fees/ Front End Fees - - 79,516,080.00Interest During Construction including Accrued interest 28,249,342.00 8,985,030.00 39,726,033.00Total IBRD Funds (a) 1,664,047,048.00 649,535,833.00 3,236,666,381.00

Counterpart Funds/inter unit (b) 828,644,447.79 600,548,198.85 5,223,250,848.18

Total Receipts (a+b) 2,492,691,495.79 1,250,084,031.85 8,459,917,229.18Interest Earned on IBRD Funds (if any)

Total Sources of Funds (A) 2,530,148,583.56 1,266,302,411.14 8,459,917,229.18Expenditures by Component:Expenditures by Component - IBRDA. Upfront fees/Front End Fees- 79,516,080.00B. Interest During Construction including Accrued interest 28,249;342.00 8,985,030.00 39,726,033.00C. Mobilisation Advance/works 1,626,321,878.00 682,711,000.00 3,150,108,637.00D. Consultancy Services 17,026,861.00 43,353,188.00 60,380,049.00

Total IBRD Expenditure (B) 1,671,598,081.00 735,049,218.00 3,329,730,799.00Expenditure by Component - CounterpartLand 7,167,566.00 9,747,415.00 249,853,182.50Building & Civil Works Assets 23,599,705.00 98,668,445.28 1,422,818,188.13Vehicles & Other Office Equipment 16,737,296.21 42,659,472.80 144,823,469.05CWIP-Dams & Barrages 1,166,704,469.51 790,049,826.00 2,202,610,834.21Other CWIP (Net off capitailsation) (1,555,064,802.00) (694,625,189.28) (833,198,541.71)EDC Pending Allocation (Net) (3,792,369.89) (15,071,536.03) 22,610.00R&R & Afforestation 108,852,166.00 12,473,111.58 396,895,102.58

Non Current Assets (Net off non current Liability) 918,872,949.27 305,122,447.12 1,867,951,420.49Net Current Assets (Net off Current Liabilities) (67,134,457.64) (1,960,265.66) (312,181,904.67)Depreciation (53,203,266.64) (53,267,621.44) (305,219,177.14)

Total Counterpart Expenditure (C) 562,739,255.82 493,796,105.37 4,834,375,183.4Total Project Expenditure D- (B+C) 2,234,337,336.82 1,228,845,323.37 8,164,105,982.44

Closing Balance (E=A-D) 295,811,246.74 37,457,087.77 295,811,246.74closing Balance in IBRD designated Account at Corporate office 27,550,803.00 24,050,753.00 27,550,803Closing Balance in special Account at Project site (IBRD) 250,837,404.00 8,123,214.00 250,837,404Closing Balance in Project Bank Account (Counterpart) 17,423,039.74 5,283,120.77 17,423,040

Total Closing Balance 295,811,246.74 37,457,087.77 295,811,246.74

It is certified that the proceeds of the loan provided by the World Bank have been used only for the purposes for which the loan was granted, with dueattention to considerations of economy and efficiency and without regard to political or other non-economic influences or considerations.

(V.P. Mathur)Sr. Manager (Finance-Pipal Koti)THDC INDIA LIMITED

As per our Report of Even date Attached

For P.D. AGRAWAL & CO.Chartered AccountantsFRN 001049C of ICAl

(Prakhar Gupta), CAPartnerMembership No. :-421711

Date: 13.12.2016Place: Rishikesh

PFS-1lTHDC INDIA LIMITED- VISHNUGAD PIPALKOTI HYDROELECTRIC PROJECT(VPHEP)IBRD Loan no. 80780-IN

RECONCILIATION OF CLAIMS TO TOTAL APPLICATION OF FUNDSREPORT FOR THE YEAR ENDED 31.03.2016

Amount in (T)

Particulars Schedul Current Year ended Previous Year Project to date as ates 31st March 2016 ended 31st March 31st March 2016

2015IBRD Funds received from World Bank I 1,650,337,300.00 645,353,002.00 3,222,956,633.00

Less: closing Balance in Designated and Special Account 278,388,207.00 32,173,967.00 278,388,207.00

Balance IBRD funds Available (A) 1,371,949,093.00 613,179,035.00 2,944,568,426.00Total IBRD Funded Expenditure during the year 1,671,598,081.00 735,049,218.00 3,329,730,799.00Less:- Interest Accrued but not due 13,709,748.00 4,182,831.00 13,709,748.00- Ineligible expenditures certified by the Auditors-Expenditure not Claimed II 7,551,033.00 85,513,385.00 93,064,418.00- Closing Balance in Designated and Special Account 278,388,207.00 32,173,967.00 278,388,207.00

Total Eligible Expenditure (B) 1,371,949,093.00 613,179,035.00 2,944,568,426.001,371,949,093.00 613,179,035.00 2,944,568,426.00

Note: 1. IBRD funds includes interest accrued but not due as on 31st Marc 016 T13709748 and P.YX 4182831.




(Prakhar Gupta), CAPartner

KANPMtMembership No. :-421711


THDC INDIA LIMITED- VISHNUGAD PIPALKOTI HYDROELECTRIC PROJECT(VPHEP)

SCHEDULE-1 OF PFS-IIAmount in (7)

Current Year ended Previous Year Project to date as atParticulars 31st March 2016 ended 31st March 31st March 2016

2015

Upfront Fees 0.00 0.00 79,516,080.00

Mobilisation Advance for Civilworks (Direct payment by - - 841,075,759.00World Bank)

Advances 1,618,000,000.00 580,000,000.00 2,198,000,000.00

IBR- - Reimbursements 35,115,321.00 35,115,321.00works

IBRD - Reimbursements - 17,797,706.00 25,435,482.00 43,233,188.00consultancy

Interest 28,249,342.00 8,985,030.00 39,726,033.00

Less Interest Accrued but not 13,709,748.00 4,182,831.00 13,709,748.00due

Less Previous year amount tobe reimbursable

Total 1,650,337,300.00 645,353,002.00 3,222,956,633.00

Schedule II of PFS-ll

Expenditure not Claimed Amount in (Z)Current Year ended Previous Year Project to date as at

Particulars 31st March 2016 ended 31st March 31st March 20162015

Consultancy payments (770,845.00) 17,917,706.00 17,146,861.00Works and supplies 8,321,878.00 67,595,679.00 75,917,557.00Total 7,551,033.00 85,513,385.00 93,064,418.00

K ANePOP

Reconciliation for the year 2015-16(Amount in INR)

S.No. Particulars IBRDYear to date Cumulative to date

A AMOUNT OF REPORTED EXPENDITURE

i Total project Expenditures as per PFS 2,234,337,336.82 8,164,105,982.44

ii Less: In-eligible expenditureiii Net project expenditure as per PFS (i-ii) 2,234,337,336.82 8,164,105,982.44

iv Net reimbursable from World BanK 1,671,598,081.00 3,329,730,799.00

v Reimbursable expenditures as reported in IUFR 1,671,598,081.00 3,329,730,799.00

B DIFFERENCE iv-v)

C AMOUNT OF WB FUNDS RECEIVED

vi Total funds received from the Bank as per PFS* 1,650,337,300.00 3,222,956,633.00

vii Total Funds disbursed as per the World Bank ** 1,650,337,300.00 3,222,956,633.00

D DIFFERENCE (vi-vii

E EXCESSI SHORT CLAIM, if any (B-D)

Note: * Total funds received from World Bank as per PFS includes interest accrued but not due as on 31st

March 2016 of Rs13709748






RECONCILIATION STATEMENTS1 INTER UNITI COUNTER PART FUNDS

UPTO 31.03.2016 UPTO 31.03.2015 2015-16As per Balance Sheet 8432366426.18 5,943,174,980.39 2,489,191,445.79Less- IBRD fund Recievd from W.B including accruedint. 3236666381.00 1,572,619,333.00 1,664,047,048.00

Add: Closing Bal at RKSH funds not transferred to 27550803.00 24,050,753.00 3,500,050.00VPHEP 24,5075.0_3,0005.0

As per Project Audit Report 5223250848.18 4394606400.39 828644447.79(2,300,711,000.00)1

2 CWIPUPTO 31.03.2016 UPTO 31.03.2015 2015-16

Dam & Barrages (Including IDC & Upfront fees) 2321852947 1,126,899,135.70 1,194,953,811.51Less IDC and upfront fees (119,242,113.00) (90,992,771.00) (28,249,342.00)Net Dam & Barrages(A) 2,202,610,834.21 1,035,906,364.70 1,166,704,469.51Other CWIP 1536214385 1,447,930,448.29 88,283,937.00Less works and supplies (2,309,032,878.00) (682,711,000.00) (1,626,321,878.00)Less works not received -Less consultancy Expenses reimburseable/ received (60,380,049.00) (43,353,188.00) (17,026,861.00)from W.B. (6,8_490) (335,8.0 (17,026,861.00)Less Not received -Net other CWIP (B) (833,198,541.71) 721,866,260.29 (1,555,064,802.00)R&R & Afforestation (C') 396895102.6 288,042,936.58 108,852,166.00IEDC pending allocation (D) 22610 3,814,979.89 (3,792,369.89)

Total CWIP (A+B+C+D) 4,254,985,045.08 2,866,687,500.46 1,388,297,544.62

3 FIXED ASSETSUPTO 31.03.2016 UPTO 31.03.2015 2015-16

Land 249,853,182.50 242,685,616.50 7,167,566.00Building & Civil Works 1,422,818,188.13 1,399,218,483.13 23,599,705.00Vehicle & other office equipments 144,823,469.05 128,086,172.84 16,737,296.21TOTAL 1,817,494,839.68 1,769,990,272.47 47,504,567.21Less: Depreciation (305,219,177.14 (252,015,910.50) (53,203,266.64)TOTAL 1,512,275,662.54 1,517,974,361.97 (5,698,699.43)

4 NON CURRENT ASSETS ( Net off of liabilities)UPTO 31.03.2016 UPTO 31.03.2015 2015-16

Long term Advances 2,958,636,322.49 1,964,869,721.57 993,766,600.92Less IBRD Direct Mobilisation Advance (841,075,759.00) (841,075,759.00) -Other Non current Assets 13,738,883.00 14,264,846.00 (525,963.00)Total Non current Assets 2,131,299,446.49 1,138,058,808.57 993,240,637.92LESS Non current liabilities 263,348,026.00 188,980,337.35 74,367,688.65NET 1,867,951,420.49 949,078,471.22 918,872,949.27

5 NET CURRENT ASSETSUPTO 31.03.2016 UPTO 31.03.2015 2015-16

Current Assets (Except Cash & Bank) 9940602.76 8,162,389.18 1,778,213.58Less: Current Liabilities 322122507.4 253,209,836.21 68,912,671.22NET (312,181,904.67) (245,047,447.03) (67,134,457.64)

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THDC INDIA LIMITEDVISHNUGAD PIPALKOTI PROJECT

BALANCE SHEET AS AT 31-March-2016

(Amount in Z)Particulars Note No. As at 31-Mar-2016 As at 31-Mar-2015

EQUITY AND LIABILITIES

Shareholders' Funds

(a) Share Capital 1 0.00 0.00

(b) Reserves And Surplus 2 0.00 0.00 0.00 0.00

Non-Current Liabilities

(a) Long Term Borrowings 3 0.00 0.00

(b) Other Long Term Liabilities 4 6,25,48,425.00 1,87,89,821.00

(c) Long Term Provisions 5 20,07,99,601.00 26,33,48,026.00 17,01,90,516.35 18,89,80,337.35

Current Liabilities

(a) Short Term Borrowings 6 0.00 0.00

(b) Trade Payables 7 0.00 0.00

(c) Other Current Liabilites 8 14,19,66,772.00 8,84,55,962.24

(d) Short Tern Provisions 9 18,01,55,735.43 32,21,22,507.43 16,47,53,873.97 25,32,09,836.21

TOTAL 58,54,70,533.43 44,21,90,173.56

ASSETS

Non-Current Assets

(a) Fixed Assets

(i) Tangible Assets 10 151,22,75,662.54 151,79,74,361.97

(ii) Intangible Assets 10 0.00 0.00

(iii) Capital Work in Progress 11 425,49,85,045.08 286,66,87,500.4F6

(iv) Intangible Assets Under Development 11 0.00 576,72,60,707.62 0.00 438,46,61,862.43

(;) Deferred Tax Assets (Net) 12 0.00 0.00

(c) Long Term Loans and Advances 13 295,86,36,322.49 196,48,69,721.57

(d) Otter Non-Current Assets 14 1,37,38,883.00 1,42,64,846.00

Current Assets

(a) Inventories 15 0.00 0.00

(b) Trade Receivables 16 0.00 0.00

(c) Cash and Cash Equivalents 17 26,82,60,443.74 1.34.06,334.77

(d) Short Term Loans and Advances 18 67,27,653.76 69.81,394.18

(e) Other Current Assets 19 32,12,949.00 27,82,01,046.50 11,80,995.00 2.15,68,723.95

Inter Unit Accounts 70 (843,23,66,426.18) (594,31.74,980.39)

Total 58,54,70,533.43 44,21,90,173.56

AS per our Report of Even date Attached (V.P. athur)Sr. Manager (Finance Pipalkoti)

For P.D. AGRAWAL & CO. THDC INDIA LIMITEDChartered AccountantsFRN 001049C of ICAI


Date: 13/12/2016Place: Rishikesh


STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31-March-2016

(Amount in T)

Particulars Note No. For the Year Ended For the Year Ended31-Ma -2016 31-Me -2015

INCOME

Revenue from Operations 20 0.00 0.00Other Income 21 0.00 0.00

Total Revenue 0.00 0.00EXPENSES

Employee Benefits Expense 22 0.00 0.00Finance Costs 23 0.00 0.00Depreciation & Amortisation 10 0.00 0.00

Generation Administration and Other Expenses 24 0.00 0.00

Total Expenses 0.00 0.00

Profit Before Prior Period Items, Extraordinary 0.00 0.00items and Tax

Prior Period Expenditure I (Income) -Net 26 0.00 0.00

Extraordinary Items- (income)/ Expenses- Net 0.00 0.00

Profit Before Tax 0.00 0.00

Tax Expenses 27

Current Tax

income Tax 0.00 0.00

Wealth Tax 0.00 0.00 0.00 0.00

Deferred tax- Asset 0.00 0.00 0.00 0.00

Profit For The Year 0.00 0.00

Earning per Equity Share

Basic ( ) 0.00 0.00

Diluted (T) 0.00 0.00

As per our Report of Even date Attached (V.P. Mathur)Sr. Manager (Finance Pipalkoti)





CASH FLOW STATEMENT FOR THE YEAR ENDED 31-March-2016

(Amount in 7)PARTICULARS For the Period Ended 31-Mar-2016 For the Period Ended 31-Mar-2015

A. CASH FLOW FROM OPERATING ACTMTIES

Net Profit before tax, Prior Period adjustments and Extraordinaryitems

Adjustments for:-

Depreciation (including Prior Period Depreciation)

Provisions

Bad Debts Written Off

Interest on loans

Prior Period Adjustments

Extraordinary Items

Operating profit Before Working Capital Changes

Adjustment For:-

Inventories

Trade Receivables

Other Assets (15,05,991.00) 4,68,800.00

Loans and Advances ( Current + Non Current) (2,75,291.50) -62,904.62

Trade Payable and Liabilities 9,72,69,413.76 6,50,60,417.37

Provisions (Current + Non Current) 4,60,10,946.11 14,14,99,077.37 1,13,77,908.79 7,68,44,221.54

Cash Generated From Operations 14,14,99,077.37 7,68,44,221.54

Corporate Tax

Net Cash From Operations (A) 14,14,99,077.37 7,68,44,221.54

B. CASH FLOW FROM INVESTING ACTIVITIES

Change In:-

Fixed Assets and CWIP (138,24,04,369.46) (92,27,00,241.07)

Construction Stores 8,69,133.00

Capital Advances (99,32,37,569.00) (38,08,75,536.00)

Fixed Assets Transfer in-out (1,94,475.73) (33761.02)

Depreciation Transfereed to/ from units/ Projects (29,49,139.82)

Net Cash Flow From Investing Activities (B) (237,58,36,414.19) (130,56,89,544.91)

C. CASH FLOW FROM FINANCING ACTIVITIES

Share Capital (Including Pending Allotment)

Borrowings

Interest on loans

Dividend & Tax on Dividend 0 0

Inter Unit Accounts 248,91,91,445.79 122,60,33,278.85

Net Cash Flow From Financing Activities ( C) 248,91,91,445.79 122,60,33,278.85

D. NET CASH FLOW DURING THE YEAR (A+B+C) 254854108.97 (2812044.52)

E. OPENING CASH & CASH EQUIVALENTS 1,34,06,334.77 1,62,18,379.29F. CLOSING CASH & CASH EQUIVALENTS(D+E) 26,82,60,443.74 1,34,06,334.77

As per our Report of Even date Attached (V.P. Mathur)Sr. Manager (Finance Pipalkoti)





Note :-1SHARE CAPITAL

Amount In rParticulars Note No. As at 31-Mar-2016 As at 31-Mar-2015

Number of Amount Number of AmountShares Shares

AuthorisedEquity Shares of Z 0 /= each 0 0.00 0 0.00

Issued Subscribed & Paid-up 0 0.00 0 0.00Equity Shares of? 0 /= each Fully Paid upTOTAL 0 0.00 0 0.00

VISHNUGAD PIPALKOTI PROJECTNote :-1.1RECONCILIATION OF NO. OF SHARES & SHARE CAPITAL OUTSTANDING

Particulars Note No. As at 31-Mar-2016 As at 31-Mar-2015Number of Amount Number of Amount

Shares Shares

Opening 0 0.00 0 0.00Issued 0 0.00 0 0.00Reduction _ _ _ 0 0.001 0 0.00Closing _o 0.00 01 0.00

VISHNUGAD PIPALKOTI PROJECTNote :-1.2DETAILS OF SHAREHOLDERS HOLDING MORE THAN 5% SHARES IN THE COMPANY

Particulars Note No. As at 31-Mar-2016 As at 31-Mar-2015Number of % Number of %

Shares SharesShare holding more than 5 %

I. GOI C 0.00 0 0.0II. GOUP 0 0.0C 0 0.0

TOTAL C _ ___ 0.00_ 0 0.0


Note :-2RESERVES & SURPLUS

Amount In TParticulars Note No. As at 31-Mar-2016 As at 31-Mar-2015

Capital Reserve

Contribution Received From Government of Uttar 0.00 0.00Pradesh Towards Irrigation Sector

LESS:-Adjustment Towards Depreciation 0.00 0.0C 0.00 0.00

Other Capital ReservePHRD Grant from World Bank (For VPHEP

Projects)Opening Balance 0.00 0.00Received during the year 0.00 0.00Utilised/adjusted during the year 0.00 0.00 0.00 0.00

Surplus In Profit & Loss AccountOpening 0.00 0.00

Add:- Profit for the year as per P&L Statement 0.00 0.0C

DIVIDENDInterim Dividend 0.00 0.0CProposed Dividend 0.00 0.0C 0.0C 0.00

TAX ON DIVIDENDDividend Distribution Tax-Interim 0.00 0.00Dividend Distribution Tax-Proposed 0.00 0.0C 0.00 0.00

Sub Total- "B" 0.0C 0.00

TOTAL (A+B) 0.0C 1 0.0


Note :-3LONG TERM BORROWINGS

Amount InParticulars Note No. As at 31-Mar-2016 As at 31-Mar-2015

A.SECURED

POWER FINANCE CORPORATION Ltd. (PFC)-78302003 (For Tehri HPP)*

POWER FINANCE CORPORATION Ltd. (PFC) -78302002 (For KHEP) #

Rural Electrification Corporation Ltd. (REC) (ForKHEP)#

(UA-GE-PSU-033-2010-3754)(Repayable within 10 years on Quarterly instalment from 0.0 0.0

30th September 2012 to 30 June 2022, carrying floatinginterest rate ranging from @10.75 to @ 12.5% p.a.)

Rural Electrification Corporation Ltd. (REC)-330001-(For Tehri HPP)*

(Repayable within 15 years on Quarterly instalment from 0.0 0.0September 2007 to March 2022, carrying floating interestrate ranging from @ 11.5% to @12.5% p.a.)

State Bank of India (SBI)-32677052247 (For TehriPSP) ##

State Bank of India ( Repayable within 10 years on 0.0 0.0Quarterly Installments from August 2016 to May 2026Prsesently carrying Floating Interest rate @ Base rate +1.2% p.a. i.e. 10.5%)

TOTAL (A) 0.00 0.00

B.UNSECUREDForeign currency Loans(Guaranteed by Govt. of India)

(repayable within 23 years on half yearly instalment from 0.0C 0.0015th Nov. 2017 to 15th May 2040 , carrying interest rate@LIBOR +variable spread.p.a. i.e. 1.15%)

TOTAL (B) 0.00 0.00

TOTAL (A+B) 0.001 0.0


Noto :-4OTHER LONG TERM LIABILITIES

Amount In FParticulars Note No. As at 31-Mar-2016 As at 31-Mar-2015

Deferred Revenue On Account of Advance AgainstDepreciation

As Per Last Balance Sheet 0.00 0.00Add:-Revenue Deferred During The year 0.00 0.00Less:- Adjusted During The Year 0.00 0.00 0.00 0.00

LiabilitiesFor ExpenditureFor Micro And Small Enterprises. 0.00 0.00For Others 0.00 0.00 0.00 0.00

Deposits, Retention Money From Contractor etc. 6,25,48,425.00 1,87,89,821.00Other Liabilities 0.0 6,25,48,425.00 0.00 1,87,89,821.00

TOTAL 6,25,48,425.00 -- ---- J- 1,87,89,821.00

Cfk


Note :-5LONG TERM PROVISIONS

Amount in FForthe Year Ended 31-Mar-2016

Particulars Note No. As at 01-Apr- Addition Adjustment Utilisation As at 31-Mar-2015 2016

1. Employee Related 14,54,10,516.35 2,63,62,413.65 0.00 (1,97,68,529.00)15,20,04,401.00

II. Others 2,47,80,000.002,40,15,200.00 0.00 0.00 4,87,95,200.00

TOTAL 17,01,90,516.355,03,77,613.6 0.00(1,97,68,529.00}20,07,99,601.0

Figure for Previous Year 110,84,35,761.007,19,58,262.3 (1,02,03,507.00 0.0017,01,90,516.3

(Ar0*

12/13/2016 THDC/Financial Management Sstem


Note :-6SHORT TERM BORROWINGS

Amount In TParticulars Note No. As at 31-Mar-2016 As at 31-Mar-2015

Short term Loan From Banks and FinancialInstitutions

A. Secured loans:

TOTAL 0.00 "0.0

http://210.212.84.189/FMSTHDC/FAS/BSNIBSN.ASPX?QRYT=538729442750345 1/1


Note :-7TRADE PAYABLE


Trade Payable -MSMED 0.00 0.00Trade Payable -Other than MSMED 0.00 0.00TOTAL 0.00 0.00

*AL


Note :-8OTHER CURRENT LIABILITIES

Amount In ?Particulars Note No. As at 31-Mar-2016 As at 31-Mar-2015

Current maturity of Long Term Debt

A.SECURED * 0.00 0.00( Indian Currency Loan)

TOTAL 0.00 0.00Liabilities

For ExpenditureFor Micro And Small Enterprises. 0.00 0.00For Others 11,85,05,514.00 11,85,05,514.00 7,02,19,816.24 7,02,19,816.24

Deposits, Retention Money From Contractors etc. 2,29,29,214.00 73,90,724.00Other Liabilities 5,32,044.00 2,34,61,258.00 1,08,45,422.00 1,82,36,146.00

Interest Accrued But Not DueFinancial Institutions 0.00 0.00Other Liabilities 0.00 0.00 0.00 0.00

TOTAL 14.19.66,772.00 8,84,55,962.2

TOTAL LIABILITIES 14,19,66,772.00 8,84,55,962.24


Noto :-9SHORT TERM PROVISIONS

Amount InFor the Year Ended 31-Mar-2016

Particulars Note No. As at 01-Apr- Addition Adjustment Utilisation As at 31-Mar-2015 2016

1. Works 1,50,40,563.00 74,58,360.00 (7,95,234.00) (7,84,000.00) 2,09,19,689.00

II. Employee Related 5,32,79,297.97 2,50,84,345.39 (64,75,453.84)(4,10,75,009.09) 3,08,13,180.43

Ill. Others 9,64,34,013.005,01,34,105.00 0.00(1,81,45,252.00)12,84,22,866.00

TOTAL 16,47,53,873.978,26,76,810.39 (72,70,687.84$6,00,04,261.09)18,01,55,735.43

Figure for Previous Year 121,51,30,720.53 1,02,357.44(1,11,59,503.00(3,93,19,701.00)16.4753,873.97

町脅員


Note:-11CAPITAL WORK IN PROGRESS

Amount InFor the Year Ended 31 -Mar-2016

Particulars Note No. As at 01 -Apr-2015 Addition During Adjustment Capitalisation As at 31-Mar-2016The Year 01-Apr- DuringtheYear DuringTheYear2015 To 31-Mar- 01-Apr-2015To 01-Apr-201STo3l-

2016 31-Mar-2016 Mar-2016Construction Work In Progress

Building & Other Civil Works 34,23,57,073.87 9,06,97,297.00 - (2,35,99,705.00) 40,94,54,665.87Roads, Bridges & Culverts 8,30,47,778.15 43,76,498.00 - 8,74,24,276.15Water Supply,Sewerage & Drainage 10,65,762.14 35,76,567.00 - 46,42,329.1Generation Plant And MachineryHydraulic Works, Dam,Spillway, Water 112,68,99,135.70119,49,76,421.51 (22,610.00) 232,18,52,947.21

Chan nels,Wei rs, Service Gate & Other HydraulicWorks

Afforestation Catchment Area 7,50,000.00 7,50,000.00Electrical Installation & Sub-Station Equipments 25,70,02,444.55 1,10,54,836.00 26,80,57,280.55Others 5,50,000.00 5,50,000.00

Expenditure Pending AllocationSurvey & Development Expenses 76,44,57,389.58 16,28,444.00 76,60,85,833.58Expenditure During Construction 11.1 38,14,979.89 22,610.00 (38,14,979.89) 22,610.00

RehabilitationRehabilitation Expenses ( Net Of Recoveries 28,72,92,936.58 10,91,34,366.00 (2,82,200.00) 39,61,45,102.58

Towards Token Cost And Rent)

Total 86,66,87,500.46 141,60,17,039.61, (41,19,789.894 (2,35,99,705.00) 26,49,86 045.08Previous Year Figure 1203,88,12,070.14103,32,98,160.4 (9,37,67,588.92 11,16,65,141.284286,66,87:500.46


Note :-11.1EXPENDITURE DURING CONSTRUCTION

Amount In ?Particulars Note No. For the Year Ended 31-Mar- For the Year Ended 31-Mar-

2016 2015EXPENDITURE

EMPLOYEE BENEFITS EXPENSES 22Salaries, Wages, Allowances & Benefits 21,06,06,435.92 25,67,30,743.57Contribution to Provident & Other Funds 1,21,70,720.00 1,45,76,229.63

Pension Fund 97,12,708.00 1,11,77,777.00Gratuity 1,30,00,989.00 3,09,17,970.03Welfare 22,54,789.50 24,77,45,642.42 23 98,463.51 31,58,01,183.74

OTHER EXPENSES 24Rent

Rent for office 24,14,498.00 29,48,586.00Rent for Employee Residence 1,14,92,303.00 1,39,06,801.00 1,22,30,745.00 1,51,79,331.00

Rate and taxes 1,31,542.00 1,69,927.00Power & Fuel 70,92,630.84 56,55,110.33Insurance 7,18,048.00 2,48,759.45Communication 38,04,508.00 27,79,450.57Repair & Maintenance

Plant & Machinery 1,34,977.00 2,20,770.00Consumption of Stores & Spare Parts 0.00 7,673.54Buildings 43,62,501.00 30,32,938.28Others 60,66,276.84 1,05,63,754.84 1,33,77,793.50 1,66,39,175.32

Travelling & Conveyance 81,30,282.00 94,25,290.00Vehicle Hire & Running 1,83,41,104.79 1,24,93,814.33Security 62,02,621.00 50,13,817.00Publicity & Public relation 14,32,086.00 30,94,682.00Other General Expenses 3,24,31,214.70 3,16,09,921.30Loss on sale of assets 1,06,490.27 11,22,189.39

DEPRECIATION 10 5,45,78,079.89 5,38,12,435.04TOTAL EXPENDITURE (A) 40,51,84,805.75 47,30,45,086.47

RECEIPTSOTHER INCOME 21

InterestFrom Bank Deposit 0.00 4,50,701.41From Employees 24,36,828.00 28,72,464.53From Others 22,814.0C 24,59,642.00 5,877.00 33,29,042.94

Rent Receipts 18,57,267.00 16,30,955.00Sundry Receipts 5,45,722.13 4,16,988.46Excess Provision Written Back 1,100.00 5,07,369.00Profit on Sale of Assets 0.00 87,555.68

TOTAL RECEIPTS (B) 48,63,731.13 59,71,911.08

PRIOR PERIOD ADJUSTMENTS 26 (18,832.00) 33,10,249.58

NET EXPENDITURE BEFORE TAXATION 40,03,02,242.62 47,03,83,424.97PROVISION FOR TAXATION 27

Wealth Tax 0.00 0.00 5,11,653.00 5,11,653.00NET EXPENDITURE INCLUDING TAXATION 40,03,02,242.62 47,08,95,077.97

Balance Brought Forward From Last Year 38,14,979.89 1,88,86,515.92

TOTAL EDC 40,41,17,222.51 48,97,81,593.89Less:-EDC Allocated To CWIP / Asset 40,40,94,612.51 48,59,66,614.00EDC Of Projects Under Approval Charged To Profit & 0.00 40,40,94,612.51 0.00 48,59,66,614.00

Loss Account

Balance Carried Forward To CWIP 22,610.00 38,14,979.89

"ok1rr3k- :9


Note :-12DEFERRED TAX ASSET

Amount In ?Particulars Note No. As at 31-Mar-2016 As at 31-Mar-2015

Deferred Tax Asset 0.00 0.00 0.00 0.00

Deferred Tax Adjustment 0.00 0.00

TotalTHDC INDIA LIMITED

VISHNUGAD PIPALKOTI PROJECTNote :-13LONG TERM LOANS AND ADVANCES

Amount InParticulars Note No. As at 31-Mar-2016 As at 31-Ma r-2015

Capital Advances

Unsecuredi) Against Bank Guarantee 220,99,42,097.00 125,93,48,697.00ii) Rehabilitation & Resettlement (Govt. of 1,25,66,706.00 3,15,16,346.00

Uttarakhand / SLAO)iii) Others 70,01,32,658.00 63,85,38,849.00iv) Accrued Interest On Advances 0.00 292,26,41,461.00 0.0C 192,94,03,892.00

SUB TOTAL - CAPITAL ADVANCES 292,26,41,461.00 192,94,03,892.00

Loans To EmployeesSecured 59,17,841.00 78,58,655.40Unsecured 1,41,91,763.00 2,01,09,604.00 1,11,69,685.00 1,90,28,340.40

Interest Accrued On Loans To EmployeesSecured 1,05,14,607.72 1,19,07,562.11Un secured 22,13,825.77 1,27,28,433.49 13,59,611.06 1,32,67,173.17

Other Advances ( Un Secured)(Advances Recoverable In Cash or In Kind or For

Value To Be Received)

To Employees 5,48,324.00 5,61,816.00To Others 0.00 5,48,324.00 0.00 5,61,816.00

DepositsSecurity Deposit 26,08,500.00 26,08,500.00Other Deposit 0.00 26,08,500.00 0.00 26,08,500.00

SUB-TOTAL 3,59,94,861.49 3,54,65,829.57

LESS:- Provision For Bad & Doubtful Advances 0.0C 0.00SUB TOTAL -ADVANCES 3,59,94,861.49 3,54,65,829.57

TOTAL LOANS AND ADVANCES 295,86,36,322.49 196,48,69,721.57

Note :- Due From DirectorsPrincipal 0.0C 0.00Interest 0.0 0.00TOTAL 0.0C 0.00Note:- Due From OfficersPrincipal 0.00 0.00Interest 0.00 0.00TOTAL 0.00 0.00


Note :-14OTHER NON CURRENT ASSETS


Prepaid Expenses 1,37,38,883.00 1,42,64,846.00Interest Accrued but not due 0.00 1,37,38,883.00 0.00 1,42,64,846.00

TOTAL 1,37,38,883.0 1,42,64,846.00THDC INDIA LIMITED

VISHNUGAD PIPALKOTI PROJECTNote :-15INVENTORIES


Inventories(At Cost Determined On Weighted Average Basis or Net

Realizable Value Whichever is Lower)Other Civil And Building Material 0.00 0.00Mechanical and Electrical Stores & Spares 0.00 0.00Others (including Stores & Spares) 0.00 0.0CMaterial Under Inspection (Valued At Cost) 0.00 0.0 0.00 0.00

Less: Provision For other stores 0.0 0.00TOTAL 0.0 0.00


Note :-16TRADE RECEIVABLES

AmountInParticulars Note No. As at 31-Mar-2016 As at 31-Ma r-2015

(i) Debts Outstanding Over Six Months (Net)Unsecured, Considered Good 0.00 0.00Considered Doubtful 0.00 0.00 0.00 0.00

(ii) Other Debts (Net)Unsecured, Considered Good 0.00 0.00

Considered Doubtful 0.00 0.00 0.0C 0.00

(iii) Regulatory Asset Debtors (Net)Unsecured, Considered Good 0.00 0.0C

Considered Doubtful 0.00 0.00 0.00 0.00

TOTAL 0.00 0.00

K(ANPUR


Note :-17CASH AND BANK BALANCES


Cash & Cash EquivalentsBalances With Banks (Including Auto sweep, Flexi 26,82,60,443.74 1,34,06,334.77

Deposit with Banks)Cheques,Drafts,Stamps on hand 0.00 0.00Other Bank BalancesOthers ( Balance with Bank under Lien not available for 0.00 0.00

use by the company)TOTAL 26,82,60,443.74 1,34,06,334.77


Note :-18SHORT TERM LOANS AND ADVANCES

Amount In ?Particulars Note No. As at 31-Ma r-2016 As at 31-Ma r-2015

Loans To EmployeesSecured 22,26,625.40 29,55,516.00Unsecured 13,18,655.00 35,45,280.40 9,30,777.00 38,86,293.00

Interest Accrued On Loans To EmployeesSecured 13,59,705.17 10,52,813.74Un secured 44,261.19 14,03,966.36 6,590.19 10,59,403.93

Others

Other Advances (Un Secured)(Advances Recoverable In Cash or In Kind or For

Value To Be Received)

To Employees 16,94,641.00 19,42,347.25For Purchases 0.00 0.00To Others 0.00 16,94,641.00 0.00 19,42,347.25

DepositsSecurity Deposit 50,000.00 50,000.00Tax Deposit 33,766.00 43,350.0COther Deposit 0.00 83,766.00 0.00 93,350.00

SUB-TOTAL 67,27,653.76 69,81,394.18

LESS:- Provision For Bad & Doubtful Advances 0.0C 0.00TOTAL ADVANCES 67,27,653.76 69,81,394.18

TOTAL LOANS AND ADVANCES 67,27,653.76 69,81,394.18

Note :- Due From DirectorsPrincipal 0.00 0.00Interest 0.00 0.00TOTAL 0.00 0.00Note:- Due From OfficersPrincipal 0.0 0.00Interest 0.0 0.00TOTAL 0.0 0.00

4KK


Nota :-19OTHER CURRENT ASSETS


Prepaid Expenses 32,12,949.00 11,80,995.00Interest Accrued 0.00 0.00

TOTAL 32,12,949.00 11,80,995.00THDC INDIA LIMITED

VISHNUGAD PIPALKOTI PROJECTNote :-20REVENUE FROM OPERATIONS

Amount InParticulars Note No. For the Year Ended 31-Mar- For the Year Ended 31-Mar-

2016 2015Income from Beneficiaries against Sale of Power 0.00 0.01

TOTAL 0.0 0.0

OX P,#Co


Not :-21OTHER INCOME


2016 2015Interest

On Bank Deposits (Includes TDS? 0.00 Previous 0.00 4,50,701.41year ? 33830.00 )

From Employees 24,36,828.00 28,72,464.53Others 22 814.00 24,59,642.00 5,877.00 33,29,042.94

Rent Receipts 18,57,267.00 16,30,955.00Sundry Receipts 5,45,722.13 4,16,988.46Excess Provision Written Back 1,100.00 5,07,369.00Profit on Sale of Assets 0.00 87,555.68

TOTAL 48,63,731.13 59,71.911.08Less:Transferred To EDC 11.1 48,63,731.13 59,71,911.08TOTAL 0.00 0.00


Note :-22EMPLOYEE BENEFITS EXPENSES

Amount In ?Particulars Note No. For the Year Ended 31-Mar- For the Year Ended 31 -Mar-

2016 2015Salaries, Wages, Allowances & Benefits 21,06,06,435.92 25,67,30,743.57Contribution to Provident & Other Funds 1,21,70,720.00 1,45,76,229.63

Pension Fund 97,12,708.00 1,11,77,777.00Gratuity 1,30,00,989.00 3,09,17,970.03Welfare Expense 22,54,789.50 23,98,463.51

TOTAL 24,77,45,642.42 31,58,01,183.74Less:Transferred To EDC 11.1 24,77,45,642.42 31,58,01,183.74TOTAL 0.0q 0.00


Note :-23FINANCE COSTS

Amount In FParticulars Note No. For the Year Ended 31-Mar- For the Year Ended 31-Mar-

2016 2015Finance Costs

Interest On Loans 19,56,42,157.00 6,64,67,147.00TOTAL 19,56,42,157.00 6,64,67,147.00LESS:-Transferred And Capitalised With CWIP Account 19,56,42,157.00 6,64,67,147.0TOTAL 0.00 0.00

Co


Not :-24GENERATION ADMINISTRATION AND OTHER EXPENSES

___________________________ ______ _________________Amount In ?

Particulars NoteNo. For the Year Ended 31-Mar- For the Year Ended 31-Mar-_____________________________2016 2015

RentRent for office 24,14,498.0 29,48,586.0Rent for Employees Residence 11492303.0 1,39,06,801.0 1,2230745.0 1,51,79,331.0

Rate and taxes 1,31,542.0 1,69,927.00Power & Fuel 70,92,630.84 56,55,110.33Insurance 7,18,048.0 2,48,759.45Communication 38,04,508.0 27,79,450.57Repair & Maintenance

Plant & Machinery 1,34,977.0 2,20,770.0Consumption of Stores & Spare Parts 0.0 7,673.5Buildings 43,62,501.0 30,32,938.28Others 6066276.84 1,05,63,754 133777 175.32

Travelling & Conveyance 81,30,282.0 94,25,290.00Vehicle Hire & Running 1,83,41,104.7 1,24,93,814.33Security 62,02,621.0 50,13,817.0Publicity & Public relation 14,32,086.0 30,94,682.0Other General Expenses 3,24,31,214.7 3,16,09,921.3Loss on sale of assets 1 1 1.06490.2 _ 11,22,189.3TOTAL __ 10,28,61.68344 10.34.31,467.6LESS:-

Transferred To EDC 11.1 10.28,61.083.44 103431,467.6TOTAL 0.00 0.0


Note :-25PROVISIONS

Amount In ?Particulars Note No. For the Year Ended 31-Mar- For the Year Ended 31-Mar-

2016 2015Provisions For Doubtful Debts, Loans & Advances 0.00 0.0Provisions For Stores & Spares 0.00 0.0

TOTAL 1, 0.00 0.0LESS:-Transferred To EDC 10.00 0.0TOTAL 3, 0.00 0.0

286


Nota :-26PRIOR PERIOD INCOME/EXPENDITURE (NET)

Amount In rParticulars Note No. For the Year Ended 31-Mar- For the Year Ended 31-Mar-

2016 2015INCOME

Misc Receipt 18,832.00 18,832.00 24,326.0 24,326.00EXPENDITURE

Employee Benefits Expenses 0.00 4,756.00Other General Expenses 0.00 19,261.00Depreciation 0.00 33,10,558.58Misc- Others 0.00 0.00 0.00 33,34,575.58

Sub Total (18,832.00 33,10,249.568LESS:-Transferred To EDC 11.1 (18,832.00) 33,10,249.58

TOTAL 0.00 0.00


Note :-27PROVISION FOR TAXATION


2016 2015INCOME TAXCurrent Year 0.0C 0.00

Sub Total 0.00 0.00

TOTAL 0.00 0.00

WEALTH TAXCurrent Year 0.0C 5,11,653.00

Sub Total 0.0C 5,11,653.00LESS:-Transferred To EDC 11.1 0.0C 5,11,653.00

TOTAL 0.01 0.00


Note :-70IifER UNIT ACCOUNTS


Noida (8,20,94,485.79) (8,10,77,085.79)Rishikesh (850,53,44,444.79) (599,97,93,953.04)TEHRI DAM & HPP 0.00 0.00Tehri PSP 0.00 0.00Koteshwar Dam 0.00 0.00Meerut 0.00 0.00Tehri Generation /O&M (1,63,53,946.62) (1,68,83,559.67)Tehri-Rehabilitation 0.00 0.00Dehradun (2,78,03,037.73) (2,77,21,552.39)Pala Maneri Hydro Electric Project (PHEP) 0.00 0.00Lohari Naag Pala Hydro Electric Project (LHEP) 0.00 0.0VPHEP 0.00 0.00Varunavat 0.00 0.00New Project NTT (2,09,08,787.36) (2,09,08,787.36)Jhalem Tamak-JTHEP 22,64,12,273.3 20,94,38,691.88O&M Service Division 0.00 0.0Sankosh and Bunakha Projects at Bhutan 13,46,916.17 13,46,916.1Malshej Ghat and Humbarli Projects in Maharashtra 2,000.0 2,000.0

(MHST)Malari jhelam-MJHEP 0.00 0.00Dhukwa-HEP-LUCKNOW 0.00 0.00KHURJA THERMAL POWER PROJECT(KTPP) (41,353.21) (48,099.21)KHEP-O&M (75,81,560.24) (75,29,550.98)Gujrat wind power project 0.00 0.00

(Total 1,63 9 43,23,66,426.184 6212),74,980.39)

A: S. NOMENCLATURE DESCRIPTION

* Significant Accounting Policies adopted in the

DISCLOSURE OF ACCOUNTING preparation and presentation of financialAS 1 POLICIES. statements has been disclosed in the

Financial Statements.

* The company is engaged in generation ofHydro Electric Power, thus does not possessraw materials/WIP,construction stores, spare

AS 2 VALUATION OF INVENTORIES, parts and consumables held for Constructionactivity /supply and consumption in course ofgeneration process is valued at costdetermined on weighted average basis or netrealizable value whichever is lower.

* Cash Flow statement is being prepared as apart of Financial Statements using indirect

AS 3 CASH FLOW STATEMENTS. method as per para 18 (b) of AS-3 asdisclosed in Significant Accounting Policy No.14.

* There is no such major reportable events

CONTINGENCIES AND EVENTS occurring after balance sheet date.

AS 4 OCCURRING AFTER THE BALANCESHEET DATE

NET PROFIT OR LOSS FOR THE Extra ordinary income / expenditure and PriorPERIOD, PRIOR PERIOD ITEMS period items (income / expenditure) have beenAND CHANGE IN ACCOUNTING disclosed in related notes.POLICIES.

Depreciation has been provided as per CERCRegulations as stated in accounting policy no. 8.

AS 6 DEPRECIATION ACCOUNTING. Necessary disclosures such as Historical Cost,AS6 DPECAINDepreciation for the year, accumulated

depreciation etc. as required under AS 6 havebeen disclosed in Note No. 10 - Fixed Assets.

ACCOUNTINGThe company has not undertaken anyAS 7 CO UTIN FO construction contracts during the reporting

CONSTRUCTION period. Thus not applicable.ACCOUNTING FOR RESEARCH AND This AS stands withdrawn.DEVELOPMENT.

The Company has been recognising salesrevenue on the basis of final tariff allowed byCERC and AFC (Annual Fixed Cost) determined

AS 9 REVENUE RECOGNITION. based on tariff regulation pending final tariffAS g RVENUEorder to be issued by CERC. Significant

Accounting Policy no. 10(i) to 10(iv) and NoteNo. 20.1 explains sales revenue mechanismfollowed by Company.diCost of Fixed Assets, purchased self

constructed have been accounted for inaccordance with AS-la0.

ACCOUNTING FOR FIXED ASSETS. Necessary disclosure in respect of Gross! NetBook Value of Assets at the beginning and atthe end of accounting period showing detailsof additions made, assets discarded! soldhave been disclosed in Financial Statements.

AT Accounting Policies relating to Foreign

c~hi ASONTN stand withdrawn.S

Transactions has been disclosed videSignificant Accounting Policies No. 7(i) to

____ EXCHANGE_______RATES.___ 7(iv).

Nor01epaisslsrveu\ehns

*Amount as received from the GoUP towardsI

ACCOUNTING FOR GOVERNMENT Irrigation Component has been recognised inAS 12 the books in accordance with AS 12. Details

GRANTS.has been disclosed vide Significant

Accounting Policy No. 3.AS 1 ACOUNTNG OR NVESMENS. * The Company has not made any investment

AS 13 ACCOUNTING FOR INVESTMENTSnot applicable.

ACCOUNTING FOR - Not Applicable.AMALGAMATIONS

* The company has various employees welfareschemes both under Defined Benefit Plan andDefined Contribution Schemes.

* Defined Contribution Planb. CPF

AS 15 EMPLOYEE BENEFITS b. Superannuation Pension FundA Defined Benefit Plans

e. Gratuityf. Earned Leave, Half Pay Leaveg. Post Retirement Medical Benefit

Sh. Post Retirement Baggage Allowance.* Company has recognised Z 12116 lac as

borrowing cost for CWIP during the year.AS 16 BORROWING COSTS. Recoginition of borrowing cost has been

explained in accounting policy no. 6 (i) & 6(ii).

e At present the Company is engaged inGeneration of hydro power from Tehri &

AS 17 SEGMENT REPORTING. Koteshwar HEP located in district TehriGarhwal in the state of Uttarakhand. Hence,

______ ___________________________ segment reporting is not applicable.* No related party transaction has been carried

LDATDout during the year. However details ofAS 1 RELTED ART DISLOSUES. Remuneration of Key Managerial Personnel

has been disclosed vide Note No. 29.8.e Company has not entered into any financial

AS19 LEASES. lease during the year. Operating leasetransactions have been disclosed vide NoteNo. 29.13.

* Company has not issued any potential

NINGEquity Share, hence both Basic and DilutedAS 2 IN S ESEPS remains same and has been disclosed in

Statement of Profit & Loss.CONSOLIDATED FINANCIAL 0 There is no subsidiary / holding company of

AS 21 STATEMENTS. THDCIL, therefore AS 21 is not applicable.

ACCONTIG FR TXESON During the year 2015-16 Deferred Tax AssetAS 22 ACCO4F A amouting to Z 16374 lacs lac has been

INCOME.accounted for.ACCOUNTING FOR INVESTMENTS 0 Company does not have any associates;

AS 23 IN ASSOCIATES IN CONSOLIDATED therefore, this AS is not applicable.

AS__ 2 FINANCIAL STATEMENTS. I No operation/activities have been

AS 24 DISCONTINUING OPERATIONS. discontinued during the year, thus nodisclosure is required.hec Although AS-25 is not applicable to the

*companythe company has been preparingAS 25 INTERIM FINANCIAL REPORTING. interim Financial Statements as a good

governance practice.

- Company has been recognising the cost ofcomputer application software as intangibleasse.t and cost is beign amortised overperio as explained in Significant Accounting

I Policy no. 8(vi).

AS 27 FINANCIAL REPORTING OF - Company has no joint venture project. HenceINTERESTS IN JOINT VENTURES this AS is not applicable.

AS 2 IMPIRMNT O ASSTS.* No impairment of assets has been carried outAS 28 IMPAIRMENT OF ASSETS the year.

* The Company makes best assesment taking

PROVISIONS, CONTINGENT into different factors such as possibilityl

AS PR IIOS , certainty of financial obligation on CompanyA29LABILTIS.&CNIGN and probability of cash outflow and provides

ASSETS.liability accordingly. Other cases areconsidered as Contingent Liability.

FINANCIAL INSTRUMENTS: Concerned Standards are in relation toRECOGNITION & MEASUREMENT Measurement, Presentation and disclosure ofFINANCIAL INSTRUMENTS: Financial Instruments. Hence these AS are notPRESENTATION applicable to the company.

AS 32 FINANCIAL INSTRUMENTS:___DISCLOSURES__________________

PAS3

*h o u c

ths Sts otapliabe

THDC INDIA LIMITED

(A Joint venture of Govt. of India & Govt. of U.P.)

Significant Accounting Policies 2015-16

General

The accompanying financial statements have been prepared on

the historical cost basis in conformity with the statutory provisions

of the Companies Act, 2013, provisions of Electricity Act 2003,

applicable CERC Regulations and the Statements, Standards

and Guidance Notes issued by the Institute of Chartered

Accountants of India from time to time.

2. Use of Estimates

The preparation of financial statements requires estimates and

assumptions that affect the reported amount of assets, liabilities,

revenue and expenses during the reporting period. Although such

estimates and assumptions are made on a reasonable and

prudent basis taking into account all available information, actual

results could differ from these estimates and assumptions. Such

differences are recognized in the year in which the actual results

are crystallized.

3. Grants-In-Aid

Grants-in-Aid received from the Central/State Government or

other authorities towards capital expenditure as well as

Contribution received from the Consumer i.e Government of Uttar

Pradesh towards irrigation component of the project cost of Tehri

H.E.P stage-I is treated initially as capital reserve and

subsequently adjusted as income in the same proportion as the

depreciation written off on the assets acquired out of such

contribution/grants-in-aid.

IL4~

4. Fixed Assets.

i. Fixed Assets including intangible assets are stated at their cost

of acquisition/construction. Assets and systems common to more

than one generating Unit are capitalized on the basis of

engineering estimates/assessments. However, Fixed assets

acquired/constructed especially for construction purposes which

would get merged with the main fixed assets or cease to be of

use after construction period, are carried as part of Capital Work-

in-Progress of the main item of Fixed Asset to be capitalized

therewith.

11. Fixed assets created on land not belonging to the Company, but

under the control and possession of the Company, are included

in Fixed Assets.

iii. In respect of land acquired through Special Land Acquisition

Officer (SLAO)/ on lease, those portions of land are capitalized

which are utilized / intended to be utilized for construction of

buildings and infrastructural facilities of the Company. Cost of

land acquired through SLAO is capitalized on the basis of

compensation paid through SLAO or directly by the Company.

Expenditure on rehabilitation of the oustees of such land is not

considered in arriving at the cost. Leasehold land is capitalized

on the basis of lease amount paid.

iv. In case where the final settlement of bills with contractors is yet

to be effected, but the asset is complete and ready for use,

capitalization is done on provisional basis subject to necessary

adjustment in the year of final settlement.

5. Capital Work-in-Progress.

i. Cost incurred towards lease amount and rent on lease hold land

and compensation for land and properties etc. used for

submergence and other purposes (such as re-settlement of

oustees, construction of new Township, afforestation, expenses

I'NPUR2

on maintenance and other facilities in the re-settlement colonies

until takeover of the same by the local authorities etc) and where

construction of such alternative facilities 'is a specific pre-

condition for the acquisition of the land for the purpose of the

project, is carried forward in the Capital Work in Progress of

Rehabilitation. On the commercial operation of the project the

same shall be capitalized as Land-unclassified.

ii. Deposit works are accounted for on the basis of statements of

account received from the Agencies concerned.

iii. In respect of supply-cum-erection contracts, the value of supplies

received at site is treated as Capital-Work-in-Progress.

iv. Claims for price variation in case of contracts are accounted for

on acceptance.

v. Administration and General overhead expenses of Corporate

office / Service centers attributable to Construction of Fixed

assets are identified and allocated on a systematic basis to

Construction projects.

Expenditure during Construction (EDC) (net) including

attributable administration and General overhead expenses of

Corporate Office / Service centers for the year, is apportioned to

Capital Work-in-Progress on the basis of accretions thereto and

included in the cost of related assets till they are ready for their

intended use.

vi. Expenditure during Construction (EDC), relating to rehabilitation

Works of Projects is carried forward and is to be dealt in line with

Policy No.5(i)

6. Borrowing Costs.

i. Borrowing costs directly relatable to acquisition and construction

of specific qualifying assets are capitalized as a part of the cost of

such asset upto the date when such asset is ready for its

intended use.

3

ii. Borrowing costs in respect of funds borrowed generally and used

for the purpose of obtaining a qualifying asset but not directly

relatable to specific Fixed Assets during their construction are

capitalized. Such borrowing costs are apportioned on the average

balance of capital work in progress for the year. Other borrowing

costs are recognized as expenses in the period in which they are

incurred.

7. Foreign Currency Transactions

i. Transactions dealt with in foreign currency are recorded at the

rates at which transacted.

ii. At the balance sheet date, foreign currency monetary items are

reported using the closing rate. Non-monetary items denominated

in foreign currency are reported at the exchange rate ruling at the

date of transaction.

iii. Exchange differences in respect of loans I deposits / liabilities

relating to fixed assets/ capital work-in-progress arising out of

transaction entered into prior to 01/04/2004 is adjusted to the

carrying cost of respective fixed asset/capital work-in-progress.

However, Exchange differences arising out of transaction

contracted on or after 01/04/2004 are accounted for in

accordance with AS - 11 (Revised 2003) 'The Effects of Changes

in Foreign Exchange Rates'.

iv. Other exchange differences are recognized as income &

expenses in the period in which they arise.

8. Depreciation

i. Depreciation is charged on straight-line method following the

rates notified by the Central Electricity Regulatory Commission

(CERC) for the purpose of fixation of tariff. In respect of assets,

where rate has not been notified by CERC, depreciation is

provided on straight line method as per rates prescribed under

the Companies Act in force.

4

In case of change in cost of asset due to increase/ decrease in

long-term liability on account of exchange fluctuations, award of

Courts, etc, revised unamortized depreciable amount is provided

prospectively over the residual useful life of the asset.

ii. Low value items costing up to Rs.1500/-, which are in the nature

of assets are not capitalized and charged to revenue.

iii. In respect of Assets costing up to Rs 5000/- but more than

Rs.1500/-(excluding immovable assets) 100% depreciation is

provided in the year of purchase.

iv. Depreciation is charged from the date the asset becomes 'ready

for use'.

v. Cost of Leasehold Land is amortized over the lease period.

vi. Cost of computer Software is recognized as intangible asset and

amortised on straight line method over a period of legal right to

use or 5 years, whichever is earlier.

Machinery spares which can be used only in connection with an

item of fixed asset and whose use is expected to be irregular are

capitalized and depreciated over the residual useful life of the

related plant and machinery.

9. Stores & Spares.

i. Stores and spares are valued at cost determined on weighted

average basis or net realizable value whichever is lower.

ii. Diminution in value of obsolete and unserviceable stores and

spares is ascertained on review and provided for.

10. Income & Expenditure

Income Recognition.

i. Sale of energy is accounted for as per final tariff notified by

Central Electricity Regulatory Commission (CERC). In case of

Power Station where final tariff is not notified, recognition of

revenue is based on the parameters and method provided in the

applicable Regulations framed by the appropriate authority i.e

5

CERC. The recognition of Revenue would be independent of the

Provisional Rate adopted for the purpose of collection pending

notification of 'Annual Fixed Charges' by CERC. Recovery /

refund towards foreign currency variation in respect of foreign

currency loans are accounted for on year to year basis.

ii. Incentive / disincentives are accounted for based on the

applicable norms notified / approved by the Central Electricity

Regulatory Commission or agreements with the beneficiaries. In

case of Power Stations where the same have not been notified/

approved/agreed with beneficiaries, incentives/ disincentives are

accounted for on provisional basis.

iii. Surcharge recoverable from sundry debtors for sale of energy

and liquidated damages! warranty claims are not treated as

accrued due to uncertainty of its realization/acceptance, and are

therefore, accounted for on the basis of receipt.

iv. Income from consultancy work is accounted for on the basis of

actual progress/ technical assessment of work executed or cost

reimbursable in line with terms of respective consultancy

contracts.

v. Interest earned on advances to contractors as per the terms'of

contract, are reduced from the cost incurred on construction of

the respective asset by credit to related Capital Work-in-Progress

Account.

vi. Value of scrap is accounted for at the time of sale.

vii. Insurance claims are Accounted for in the year of receipt

/acceptance by the insurer /certainty of realization.

Expenditure

viii. Cost of stores and spares used on repairs and maintenance are

charged to the Repairs and Maintenance Account.

ix. Prepaid expenses and prior period expenses/income of items of

0.10~,000/- or below in each case, are charged off to the natural

Il.

IV.

heads of accounts.

x. Net incomelexpenditure prior to Commercial operation is adjusted

directly in the cost of related assets and systems.

xi Preliminary expenses on account of new projects incurred prior to

approval of feasibility report are charged to revenue.

xii Amount at appropriate % of Profit after Tax (PAT) of previous

year as prescribed under DPE guideline is set aside as non

lapsable fund for Research & Development.

xiii Expenditure on CSR activities shall be made as per the

provisions of Section 135 of the Companies Act 2013. Any

unspent amount shall be set aside as non-lapsable fund as per

DPE guidelines.

xiv Provision for doubtful debts/ advances/ claims outstanding over

three years (except Government dues) is made unless the

amount is considered recoverable as per management estimate.

However, Debts/ advances/ claims shall be written off on case to

case basis when unrealisability is finally established.

11. Employees' Benefits.

i. Liability for retirement benefits to employees in respect of

gratuity, leave encashment and post retirement medical benefits,

baggage allowance, memento to retiring employees, financial

package for dependent of deceased employees and funeral

expenses etc. as defined in AS-15 is accounted for on accrual

basis based on actuarial valuation determined as at the year end.

ii. The company has established a separate Trust for administration

of P-ovident Fund and the company's contribution to the Fund is

charged to expenditure every year. The liability of the company in

respect of shortfall (if any) in interest on investments is

ascertained and provided annually on actuarial valuation at the

year end.

7

12. Miscellaneous Expenditure

Deferred revenue expenditure is being fully charged in the year of

expenditure.

13. Taxes on income

Taxes on income for the current period is determined on the

basis of taxable income under the Income Tax Act, 1961.

Deferred tax is recognized on timing differences between the

accounting income and taxable income for the year and

quantified using the tax rates and laws enacted or substantively

enacted as on the Balance Sheet date. Deferred tax assets are

recognized and carried forward to the extent there is a

reasonable certainty that sufficient future taxable income will be

available against which such deferred tax assets can be realized.

Deferred Tax Recovery Adjustment Account is credited/debited to

the extent tax expense is chargeable from the Beneficiaries in

future years on actual payment basis.

14. Cash Flow Statement.

Cash flow statement is prepared in accordance with the indirect

method prescribed in Accounting Standard (AS) 3 on 'Cash Flow

Statement'.

8

NOTE NO. 29 OTHER EXPLANATORY NOTES ON ACCOUNTS:

1. Estimated amount of contracts remaining to be executed on capital accountand not provided for (net of advances) is Rs 16548554107[P.Y. Rs

18461111416).

2. CONTINGENT LIABILITIES (in Rs)2015-16 2014-15

(i) Claims against the Company, not

Acknowledged as debts:

Arbitration /Court cases 24055000 41699000

3. Company has also accepted EMD/Security Deposit in the shape of

FDR/CDR amounting to Rs 7031444 (P.Y. Rs 6773931) besides the

"Deposits, Retention money from Contractors" amounting to

Rs 85477639(P.Y. Rs 26180545).

4. The amount of borrowing cost capitalized during the year is Rs 195642157

(P.Y.Rs 66467147) after adjustment of an amount of T Nil (P.Y. Nil)

towards interest earned on short term deposits of surplus borrowed funds

during the year.

5. With the approval of the Board of Directors for implementing Defined

Contribution Pension Scheme 2007, formal proposal has been forwarded to

Ministry of Power for seeking approval. Pending receipt of approval,

provision for pension fund @ 10% of Basic pay & DA amounting to

Rs 7598639 has been made in accounts during 2015-16.

6. (i)MOE&F, Government of India vide order no 08B/UCP/06/312/2006/FC/144dated 29.04.08 has sanctioned 5.75 hectare of forest land on lease for

which legal formalities are yet to be completed.- deleted last year on

completion of formalities.

(ii) Private land acquired by the company for reservoir, project work, colonies,

misc. etc. including freehold land is 31.64 Ha. Out of which title deed of land

measuring 0.235 Hac is yet to be entered in the name of the Company.

7. The Company has taken on lease / rent premises for employees / offices /

Guest Houses/Transit camps & Vehicles. These lease arrangements are

usually renewable on mutually agreed terms. Rent/Lease includes

Rs 11190003 (P.Y. Rs 3940692) towards lease payment (net off

coveries).

8. Additional information required as per Schedule VI of the Companies Act

1956 towards other Advance and payments to contractors in Foreign

Currency is Rs 374552000 (P.Y. 127055746).

9. Previous year figures have been regrouped/ reclassified wherever

necessary to make the figures comparable with the figures of the current

year.


For P.D. AGRAWAL & CO.Chartered AccountantsFRN 001049C of ICAl

(V.P. Mathur)Sr. Manager(Finance-Pipal Koti)

(Prakhar Gupta), CA THDC INDIA LIMITED

PartnerMembership No. :-421711

Place: Rishikesh

Dated: 13/12/2016

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